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Paul Merrell

Snowden 'overwhelmed' by public response | TheHill - 0 views

  • Edward Snowden says he is “overwhelmed” by the public reaction to his disclosures about the government's mass surveillance programs.“I was really worried ... that this would be a two day story, then everybody would forget about it and we’d move on.” he said during a video question and answer session hosted by the PEN American Center on Tuesday.Snowden spoke to the event from Moscow, where he has been since fleeing the U.S. in 2013 after leaking classified information about the National Security Agency (NSA) collecting information on millions of Americans' phone calls.ADVERTISEMENTHis disclosures led to a public outcry, which Snowden hailed, and Congress passing broad reforms to the NSA.But he said that there was still need for vigilance and further reforms. He also warned against secrecy in national security programs, noting that the surveillance programs "were passed without meaningful debate at all."The NSA program collected data on the phone numbers involved in calls and their duration but not the actual content of conversations. It is set to expire at the end of the month.Under the reforms, the government must now obtain a warrant to access phone data that will be stored by private companies.
  • Critics say that Snowden endangered national security, but his supporters say he acted as a whistleblower and drew appropriate scrutiny to the government's programs.Activists such as Snowden and PEN America Center have championed reforms and sought to increase protections for whistleblowers.The event took place on the same day the group released a report outlining the risks that government contractors face when leaking classified information.
Paul Merrell

Has Israel's Air Force Joined Obama's Air Campaign against Syria? Israeli Jets Strike D... - 0 views

  • According to a report by Algemeiner (November 11, 2015), Israel’s Air Force was involved in bombing inside Syria, hitting targets close to Damascus airport.  According to reports in Syrian media outlets affiliated with President Bashar Assad, Israel Air Force jets hit targets near the Damascus airport, Israel’s Channel 2 reported Wednesday evening. The report, a breaking story that interrupted the nightly news, was neither confirmed nor denied by Israeli authorities. Channel 2 military correspondent Roni Daniel said that Israel has made it clear it would not allow the transfer of weapons from Iran, via Damascus, to Hezbollah in Lebanon. This is not the first time that air strikes in Syria have been attributed to Israel without confirmation from officials in the Jewish state. But this comes on the heels of meetings between Prime Minister Benjamin Netanyahu and Russian President Vladimir Putin reportedly held to coordinate operations in Syria — and ensure that there are no unwitting collisions between planes from their respective air forces. During a visit to the US this week, Netanyahu gave insight into Israel’s Syria policy. He told an audience at a gala for the American Enterprise Institute that he laid out Israel’s red lines in Syria to Putin in September.
  • “We will not allow Iran to set up a second front in the Golan, and we will act forcefully — and have acted forcefully — to prevent that. We will not allow the use of Syrian territory from which we’d be attacked by the Syrian army or anyone else and we have acted forcefully against that. And third, we will not allow the use of Syrian territory for the transfer of game-changing weapons into Lebanon into Hezbollah’s hands, and we have acted forcefully on that. I made it clear that we will continue to act like that,” he said. (Ruth Blum, Algemeiner, November 12, 2015) This report begs the question as to the ultimate objective of Netanyahu’s visit to Washington. The Israeli delegation to Washington was also integrated by military and intelligence officials who no doubt had meetings with their counterparts at the Pentagon and Langley, not to mention the US Congress. A week prior to the Obama-Nentayahu “summit”,  Netanyahu dispatched his defense chief, Moshe “Bogie” Ya’alon, to Washington, “to help smooth the way for his own visit”. Was there an understanding that Israel would henceforth play a more active role in the war against Syria? In an earlier statement, Defense Secretary Ashton Carter intimated:
  • “It is a reasonable expectation that the defense relationship [with Israel] will be one of stability and endurance, …” (quoted by Defense One, November 3, 2015) Ya’alon was hosted in Washington  by Defense Secretary Ashton Carter who is credited for having stabilized the US-Israel relationship.  Were these talks between Carter and Ya’alon behind closed doors indicative of a shift in US-Israel military relations,  specifically with regard to Syria. Quoting Syrian opposition sources, the Israeli media dismissed the reports that the IDF was behind the air strikes: Syrian opposition activist Ahmed Yabrudi said: “Israeli warplanes entered from south Lebanon, arrived at Qalamoun and flew above the international airport in Damascus where they struck nearby military outposts.” He added that “the Israeli planes remained in Syria’s skies for a half hour, and there is no information about the outposts that were hit – except that they belonged to Hezbollah.” Official Syrian media failed to report on the air strikes attributed to Israel. [According to Algemeiner, it was announced on Syrian TV] Israeli defense officials also declined to comment on the foreign media reports. However, Israel did previously announce a strict-policy of intolerance towards threats to the state, such as weapons transfers to Hezbollah in Lebanon. (Jerusalem Post, November 12, 2015)
Paul Merrell

On this Veterans Day, suicide has caused more American casualties than wars in Iraq and... - 0 views

  • One of the most tragic problems afflicting those who served their country is the specter of suicide, often the fallout of post traumatic stress disorder (PTSD). After more than a year of intense lobbying by veterans groups, Congress this year passed the Clay Hunt Suicide Prevention for American Veterans Act, named for a Marine veteran who took his own life even after working as an advocate for suicide prevention. The law is designed to reduce military and veteran suicides, and improve access to quality mental health care. But veterans experts estimate that 17 of the 22 daily suicides involve vets not enrolled in the VA’s healthcare system, suggesting more research — and far greater funding — will be necessary to get a handle on the problem.
  • With U.S. combat operations winding down in Afghanistan and Iraq, the suicide rate among ex-military members has risen from 18 a day in 2010, although studies undertaken by the Veterans Administration have failed to pinpoint a direct cause. Only about a third of all vets use the VA for healthcare, which leaves a wide swath of people who once wore the uniform outside the reach of the military’s data gathering.“Common sense would have us expect a correlation between number of deployments and combat with suicide risk,” says Fred MacRae, lead suicide prevention coordinator at the VA hospital in Palo Alto. But recent research suggests that’s not necessarily the case. #AD_text{ font-size: 11px; color: #999999; } Advertisement Not even the horrors of battle are a proven cause. “More and more,” says Jackie Maffucci, research director for Iraq and Afghanistan Veterans of America (IAVA), “the data are suggesting that exposure to combat is not one of the high-risk factors.”
  • Almost everyone who has served in the military now knows someone — often several someones — who suffers from disabling depression. Some end their own lives. Members of the IAVA were asked in a survey last year if they knew at least one post-9/11 veteran who had attempted suicide, and 47 percent answered yes. Another 40 percent knew at least one veteran who had died by suicide. “And 31 percent indicated they had thought about taking their own life since joining the military,” says Maffucci. “Those are startling numbers.”Daniel Faddis told another veteran in his family that he felt he had let down his military buddies when he was booted out. “He carried around a lot of guilt about that,” Stan Faddis says. “Some guys he knew ended up dying in combat, and he felt bad he wasn’t there to save them, or to die with them.”The current wait time for a mental health appointment at the VA in Palo Alto is about 12 days, and in a recent national study by the Government Accountability Office it averaged 26 days. Still, that’s considerably shorter than when the country went on a wartime footing following 9/11. “In 2001, your chances of dying by suicide were greater if you got your care in the VA system than if you got it elsewhere,” MacRae acknowledges. The new federal legislation is creating a program to help the VA recruit psychiatrists by assisting with their tuition payments, and it also requires an annual evaluation of VA mental health and suicide-prevention programs.
Paul Merrell

US Petition Blasting Erdogan's Support For Terrorism Nets 30,000 Signatures - 0 views

  • A petition condemning Turkish President Recep Tayyip Erdogan for his support of the Islamic State that was placed on the White House website has received more than 30,000 signatures, its organizer Jim Jatras told Sputnik on Wednesday. “Following Turkey’s downing of a Russian jet striking the Islamic State (IS), it is undeniable that Pres. Recep Tayyip Erdogan supports jihad terrorism in Syria,” the petition said. “[The] IS exports oil via Turkey and terrorists of IS, al-Qaeda, and other jihad groups transit the border.” The petition has a goal of attracting 100,000 signatories by January 1, 2016. It notes Turkey’s pattern of support for terrorists in other countries including in Russia, China, Israel, Bosnia, Serbia, Georgia and Egypt. “Turkey should be listed as a State Sponsor of Terrorism. The US alliance with Turkey under NATO should be voided,” the petition stated. Jatras is a former veteran staff member of the US Senate and a former Foreign Service officer at the Department of State. He worked for 18 years as a foreign policy advisor to several Republican lawmakers in Congress.
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    The petition is here. https://goo.gl/jGNkS8
Gary Edwards

A Crisis Worse than ISIS? Bail-Ins Begin - nsnbc international | nsnbc international - 0 views

  • Propping Up the Derivatives Scheme Dodd-Frank states in its preamble that it will “protect the American taxpayer by ending bailouts.” But it does this under Title II by imposing the losses of insolvent financial companies on their common and preferred stockholders, debtholders, and other unsecured creditors. That includes depositors, the largest class of unsecured creditor of any bank.
  • Title II is aimed at “ensuring that payout to claimants is at least as much as the claimants would have received under bankruptcy liquidation.” But here’s the catch: under both the Dodd Frank Act and the 2005 Bankruptcy Act, derivative claims have super-priority over all other claims, secured and unsecured, insured and uninsured.
  • The over-the-counter (OTC) derivative market (the largest market for derivatives) is made up of banks and other highly sophisticated players such as hedge funds. OTC derivatives are the bets of these financial players against each other. Derivative claims are considered “secured” because collateral is posted by the parties. For some inexplicable reason, the hard-earned money you deposit in the bank is not considered “security” or “collateral.” It is just a loan to the bank, and you must stand in line along with the other creditors in hopes of getting it back. State and local governments must also stand in line, although their deposits are considered “secured,” since they remain junior to the derivative claims with “super-priority.”
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  • Under the old liquidation rules, an insolvent bank was actually “liquidated” – its assets were sold off to repay depositors and creditors. Under an “orderly resolution,” the accounts of depositors and creditors are emptied to keep the insolvent bank in business.
  • The point of an “orderly resolution” is not to make depositors and creditors whole but to prevent another system-wide “disorderly resolution” of the sort that followed the collapse of Lehman Brothers in 2008.
  • The concern is that pulling a few of the dominoes from the fragile edifice that is our derivatives-laden global banking system will collapse the entire scheme. The sufferings of depositors and investors are just the sacrifices to be borne to maintain this highly lucrative edifice.
  • At first glance, the “bail-in” resembles the normal capitalist process of liabilities restructuring that should occur when a bank becomes insolvent. . . . The difference with the “bail-in” is that the order of creditor seniority is changed. In the end, it amounts to the cronies (other banks and government) and non-cronies. The cronies get 100% or more; the non-cronies, including non-interest-bearing depositors who should be super-senior, get a kick in the guts instead. . . . In principle, depositors are the most senior creditors in a bank. However, that was changed in the 2005 bankruptcy law, which made derivatives liabilities most senior. Considering the extreme levels of derivatives liabilities that many large banks have, and the opportunity to stuff any bank with derivatives liabilities in the last moment, other creditors could easily find there is nothing left for them at all.
  • A study involving the cost to taxpayers of the Dodd-Frank rollback slipped by Citibank into the “cromnibus” spending bill last December found that the rule reversal allowed banks to keep $10 trillion in swaps trades on their books. This is money that taxpayers could be on the hook for in another bailout; and since Dodd-Frank replaces bailouts with bail-ins, it is money that creditors and depositors could now be on the hook for.
  • As of September 2014, US derivatives had a notional value of nearly $280 trillion
  •  Citibank is particularly vulnerable to swaps on the price of oil. Brent crude dropped from a high of $114 per barrel in June 2014 to a low of $36 in December 2015.
  • What about FDIC insurance? It covers deposits up to $250,000, but the FDIC fund had only $67.6 billion in it as of June 30, 2015, insuring about $6.35 trillion in deposits. The FDIC has a credit line with the Treasury, but even that only goes to $500 billion; and who would pay that massive loan back? The FDIC fund, too, must stand in line behind the bottomless black hole of derivatives liabilities
  • You can move your money into one of the credit unions with their own deposit insurance protection; but credit unions and their insurance plans are also under attack.
  • In short, the goal of the bail-in scheme is to place losses on private creditors. Alternatives that allow them to escape could soon be blocked.
  • The Dodd Frank Act and the Bankruptcy Reform Act both need a radical overhaul, and the Glass-Steagall Act (which put a fire wall between risky investments and bank deposits) needs to be reinstated.
  • Meanwhile, local legislators would do well to set up some publicly-owned banks on the model of the state-owned Bank of North Dakota – banks that do not gamble in derivatives and are safe places to store our public and private funds.
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    Excellent analysis of the coming banking crisis anw how our politicians have put the citizens on the hook for risky bank derivative gambling.  Thanks Marbux! Ellen H. Brown (nsnbc) : While the mainstream media focus on ISIS extremists, a threat that has gone virtually unreported is that your life savings could be wiped out in a massive derivatives collapse. Bank bail-ins have begun in Europe, and the infrastructure is in place in the US.  Poverty also kills.
Paul Merrell

US Planning to Keep Military Forces in Afghanistan for "Decades" | Global Research - Ce... - 0 views

  • The US military plans to maintain a presence of thousands of US forces in Afghanistan for “decades,” unnamed senior US military officials told theWashington Post Tuesday. “The US was supposed to leave Afghanistan by 2017. Now it might take decades,” unnamed US military leaders cited by the Post said. The confirmation of long-term US troop deployments to Afghanistan has been prompted by the instability of the US-backed regime in Kabul, whose tenuous hold over the capital is threatened by insurgent forces including the Taliban, al Qaeda and ISIS, the US officials said. Current Afghan President Ashraf Ghani is a US and NATO stooge imposed through a managed election geared to deflect popular hatred of the previous US- backed ruler, Hamid Karzai. Ghani was described by the US officials as a “willing and reliable partner” who can “provide bases to attack terror groups not just in Afghanistan, but also throughout South Asia for as long as the threat in the chronically unstable region persists.” US officials added, “There’s a broad recognition in the Pentagon that building an effective Afghan Army and police force will take a generation’s commitment, including billions of dollars a year in outside funding.”
  • The US-NATO intervention in Afghanistan will also require “constant support from thousands of foreign advisers on the ground,” the officials said. “We’ve learned that you can’t really leave,” an unnamed Pentagon official said. “You’re going to be there for a very long time.” Unnamed Obama administration officials confirmed the White House’s support for the plans, saying that the US intervention is analogous to that in South Korea, where Washington has deployed tens of thousands of soldiers since the end of the Second World War to cement its domination over the Pacific Rim. The Post report, which amounts to a de facto US government press release, comes amid a broader upsurge of escalatory moves by the US military in Central Asia, the Middle East and North Africa. Last week the Obama administration signed orders authorizing the US military to expand its military operations in northeast Afghanistan in the name of targeting the Islamic State. US Department of Defense chief Ashton Carter announced further deployments of US ground forces to Iraq, pledging to put “boots on the ground.” US Vice President Joseph Biden declared that Washington is prepared to seek a “military solution” in Syria. On Friday, US General Joseph F. Dunford said that the US is on the verge of launching “decisive military action” in Libya, in coordination with a NATO coalition.
  • Dunford’s statements have signaled “the opening of a third front in the war against the Islamic State,” according to a New York Times editorial Tuesday. The new US war in Libya “could easily spread to other countries on the continent,” the Times admitted, before calling for the US Congress to pass a new authorization to use military force. With the US and European powers engaged in a competitive scramble over the redivision of the world, the announcement that US forces will remain in Afghanistan for untold decades underscores the centrality of the Central Asian region in the strategic calculations of US imperialism. The US ruling class and military establishment seek to utilize Afghanistan as a permanent military outpost for operations throughout South and Central Asia. Washington is determined to project power throughout the entire Eurasian landmass as part of its campaign to destabilize Russia and China and foster conditions more suitable to US control over the world’s decisive economic centers.
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    To those who voted for Obama as a "peace" candidate: How did that work out for you?
Paul Merrell

Cashless Society War Intensifies During Global Epocalypse Washington's Blog - 0 views

  • In the fall of 2015, the world descended into an economic apocalypse that will transform the globe into a single cashless society. This bold prediction is based on trends in nations all over the earth as shown in the article below. As we enter 2016, we are only beginning to see this Epocalypse form through the fog of war. The war I’m talking about is the world war waged furiously by central banks against the Great Recession as the governments they supposedly serve fiddled while their capital burned. The governments and banks of this world advanced rapidly toward forming cashless societies throughout 2015. The citizens of some countries are already embracing the move. In other countries, like the US, citizens fear the loss of autonomy that would come from giving governments and their designated central banks absolute monetary control.
  • The Epocalypse that I’ve been describing in this series will overcome that resistance during 2016 and 2017 as it wrecks economic havoc to such a degree that cash hold-outs will be ready for whatever holds the greatest promise of saving them from their collapsed monetary systems, fallen banks, deflated stocks and suffocating debt. One has only to think about how quickly and readily American citizens forfeited their constitutional civil liberties after 9/11 when George Bush and congress decreed that search warrants were not necessary if the government branded you a “terrorist.” If this sounds like some wild conspiracy theory, consider the following: no less Sterling standard of global economics than The Economist predicted thirty years ago that by 2018 a global currency would rise like the phoenix out of the ashes of the world’s fiat currencies:
  • Charging people to keep their money in the bank is hard to do so long as cash is available, as people may just withdraw all of their money from those banks in the form of the national cash and squirrel the cash away. In order to penetrate the twilight zone of economics, central banks need to abolish cash to terminate this escape route. Then they can force savers to spend, thereby increasing the flow of money through the economy, by raising the cost of holding money in a bank account as high as it takes to get people to spend their money. No sense letting perfectly good money waste away in an expensive bank account. Transitioning into a cashless society is the ultimate central planner’s dream as it gives central banks total control over money, and money is their proprietary product.
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  • The drive to breach the national boundaries of money and establish a global cashless society has become a World War on cash with IMF backing to go digital and global.
Paul Merrell

Israeli Drone Feeds Hacked By British and American Intelligence - 0 views

  • MERICAN AND BRITISH INTELLIGENCE secretly tapped into live video feeds from Israeli drones and fighter jets, monitoring military operations in Gaza, watching for a potential strike against Iran, and keeping tabs on the drone technology Israel exports around the world. Under a classified program code-named “Anarchist,” the U.K.’s Government Communications Headquarters, or GCHQ, working with the National Security Agency, systematically targeted Israeli drones from a mountaintop on the Mediterranean island of Cyprus. GCHQ files provided by former NSA contractor Edward Snowden include a series of “Anarchist snapshots” — thumbnail images from videos recorded by drone cameras. The files also show location data mapping the flight paths of the aircraft. In essence, U.S. and British agencies stole a bird’s-eye view from the drones.
  • Several of the snapshots, a subset collected in 2009 and 2010, appear to show drones carrying missiles. Although they are not clear enough to be conclusive, the images offer rare visual evidence to support reports that Israel flies attack drones — an open secret that the Israeli government won’t acknowledge. “There’s a good chance that we are looking at the first images of an armed Israeli drone in the public domain,” said Chris Woods, author of Sudden Justice, a history of drone warfare. “They’ve gone to extraordinary lengths to suppress information on weaponized drones.” The Intercept is publishing a selection of the drone snapshots in an accompanying article.
  • Additionally, in 2012, a GCHQ analyst reported “regular collects of Heron TP carrying weapons,” referring to a giant drone made by the state-owned Israel Aerospace Industries, known as IAI. Anarchist operated from a Royal Air Force installation in the Troodos Mountains, near Mount Olympus, the highest point on Cyprus. The Troodos site “has long been regarded as a ‘Jewel in the Crown’ by NSA as it offers unique access to the Levant, North Africa, and Turkey,” according to an article from GCHQ’s internal wiki. Last August, The Intercept published a portion of a GCHQ document that revealed that NSA and GCHQ tracked weapons signals from Troodos, and earlier reporting on the Snowden documents indicated that the NSA targeted Israeli drones and an Israeli missile system for tracking, but the details of the operations have not been previously disclosed. “This access is indispensable for maintaining an understanding of Israeli military training and operations and thus an insight to possible future developments in the region,” a GCHQ report from 2008 enthused. “In times of crisis this access is critical and one of the only avenues to provide up to the minute information and support to U.S. and Allied operations in the area.”
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  • The documents highlight the conflicted relationship between the United States and Israel and U.S. concerns about Israel’s potentially destabilizing actions in the region. The two nations are close counterterrorism partners, and have a memorandum of understanding, dating back to 2009, that allows Israel access to raw communications data collected by the NSA. Yet they are nonetheless constantly engaged in a game of spy versus spy. Last month, the Wall Street Journal reported that, although President Obama had pledged to stop spying on friendly heads of state, the White House carved out an exception for Israeli Prime Minister Benjamin Netanyahu and other top Israeli officials. Michael Hayden, former head of the CIA and NSA, told the Journal that the intelligence relationship with Israel was “the most combustible mixture of intimacy and caution that we have.”
Paul Merrell

Taliban Control of Afghanistan Highest Since U.S. Invasion - NBC News - 0 views

  • America's 14-year project to defeat the Taliban and build a stable Afghanistan is teetering on the brink of failure, according to a sobering report Friday by a government watchdog. The Taliban controls more of the country than at any time since U.S. troops invaded in 2001, notes the quarterly report to Congress by the Special Inspector General for Afghanistan Reconstruction. The fragile economy is worsening. One of the few bright spots of the troubled reconstruction effort — getting more girls in school — has been tainted by allegations of fraud. "The lack of security has made it almost impossible for many U.S. and even some Afghan officials to get out to manage and inspect U.S.-funded reconstruction projects," wrote John Sopko, the inspector general. The U.S. has spent more than $113 billion on Afghan reconstruction, more in constant dollars than it spend rebuilding Western Europe after World War II under the Marshall Plan. It is on track to spend billions more, but many critics view the Afghan civilian aid effort as a wasteful failure. Sopko has examined a fraction of the spending, but his audits have uncovered $17 billion in questioned costs in just three years, according to a tally by ProPublica, the investigative group.
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    The rational commander would have recognized it was mission impossible and turned it down before the war began. But the U.S. response almost beyond doubt will be to send in reinforcements. 
Paul Merrell

Two Republican Congressmen Introduce Bill to 'Draft Our Daughters' | Military.com - 0 views

  • Two House Republicans -- both opponents of opening up combat roles to women -- introduced a bill Thursday called "Draft America's Daughters Act of 2016," which would require women to register for the draft. The bill was offered by Rep. Duncan Hunter, a Republican from California and former Marine, and co-sponsored by Rep. Ryan Zinke, a Republican from Montana and former Navy SEAL. It would "amend the Military Selective Service Act to extend the registration and conscription requirements of the Selective Service System, currently applicable only to men between the ages of 18 and 26, to women between those ages to reflect the opening of combat arms Military Occupational Specialties to women," according to copy of the text. Hunter, a Major in the Marine reserves and a veteran of Iraq and Afghanistan, and Zinke, a retired Navy SEAL Commander who served in Iraq, were both likely to vote against their own bill but argued that a debate in Congress was necessary on lifting the combat exclusion rule for women.
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    My preferred alternative is to abolish conscription, which is an affront to the Bill of Rights. 
Paul Merrell

Financiers linked to George Soros donate to Kasich campaign - RT USA - 0 views

  • Fresh off a second-place primary finish in New Hampshire, Republican presidential candidate John Kasich has come under more scrutiny, particularly for donations to his PAC New Day for America made by two fund managers who made billions for George Soros. Scott Bessent and Stanley Druckenmiller contributed $588,375 to the Ohio governor’s “soft money” fund, according to Federal Election Commission records.Druckenmiller donated a total of $103,375 to Jeb Bush’s Super PAC Right to Rise and $100,000 to America Leads, a PAC supporting New Jersey Governor Chris Christie, who dropped out of the race after a poor showing in Tuesday’s primary.Bessent was Soros’s chief investment manager until December of last year, while Stanley Druckenmiller manages a $4.5 billion hedge fund in which $2 billion of Soros’ money is invested.
  • Druckenmiller was lead fund manager for Soros from 1998 to 2000, and together they “broke” the Bank of England in 1992 when Soros dumped £10 billion, leading to the currency’s devaluation and $1 billion in profit for him.Ohio Governor John Kasich came in second in the New Hampshire primary with 15.8 percent of the vote, edging out Ted Cruz with 11.7, but falling well-behind Donald Trump’s 35.3.Kasich spent 18 years in Congress before becoming a managing director for Lehman Brothers from 2001 until their collapse in 2008. He also hosted a program for the Fox News Channel.These donations have been getting a lot of attention because Soros is usually known for his support of Democratic candidates and progressive causes.
Paul Merrell

Neocon savages Christie for failing 'months and months of careful coaching' by foreign ... - 0 views

  • This is delicious. Donald Trump’s anti-interventionist foreign policy ideas are causing panic among the neoconservatives. Clearly this branch of the Republican establishment will leave the party over Trump. Neoconservative Washington Post writer Jennifer Rubin is outraged that Chris Christie would endorse Donald Trump despite “months and months of careful coaching” in foreign policy by “outside… experts.” That’s how the Israel lobby works, by coaching politicians. This is what the neocons have successfully done with Marco Rubio: gotten him to be a robot on the Israel issue.
  • And then this. Neoconservative Robert Kagan, also in the Washington Post, is endorsing Hillary Clinton because of Trump’s xenophobia and demagoguery and racism, but also the foreign policy
  • Kagan is the man who brought us the Project for New American Century letters that helped get the country into the Iraq War.
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  • So Hillary Clinton is the shop for muscular internationalists. Bernie Sanders keeps beating up on her friendship with Henry Kissinger, and that’s a good thing. But why doesn’t he talk about her affection for Benjamin Netanyahu and Dennis Ross? Netanyahu has terrible favorability ratings, especially among black Democrats, many of whom boycotted his speech to Congress a year ago. But Hillary Clinton wants to have him into the White House in her first month in office. Remember that some neocons also left the Reagan Bush team when Bush got tough on Israel, and crossed the aisle to Bill Clinton. The Israel lobby transcends party.
Paul Merrell

Ford White House Altered Rockefeller Commission Report - 0 views

  • Gerald Ford White House Altered Rockefeller Commission Report in 1975; Removed Section on CIA Assassination Plots White House Aide Dick Cheney Spearheaded Editing of Report to Dampen Impact New Documents Cast Further Doubt on Commission’s Investigation, Independence
  • The Gerald Ford White House significantly altered the final report of the supposedly independent 1975 Rockefeller Commission investigating CIA domestic activities, over the objections of senior Commission staff, according to internal White House and Commission documents posted today by the National Security Archive at The George Washington University (www.nsarchive.org). The changes included removal of an entire 86-page section on CIA assassination plots and numerous edits to the report by then-deputy White House Chief of Staff Richard Cheney.  Today’s posting includes the entire suppressed section on assassination attempts, Cheney’s handwritten marginal notes, staff memos warning of the fallout of deleting the controversial section, and White House strategies for presenting the edited report to the public. The documents show that the leadership of the presidentially-appointed commission deliberately curtailed the investigation and ceded its independence to White House political operatives. This evidence has been lying ignored in government vaults for decades. Much of the work of securing release of the records was done by the John F. Kennedy Assassinations Records Board in the 1990s, and the documents were located at the National Archives and Records Administration at College Park, Maryland; or at the Gerald R. Ford Library in Ann Arbor, Michigan. Additional mandatory declassification review requests filed by Archive fellow John Prados returned identical versions of documents, indicating the CIA is not willing to permit the public to see any more of the assassinations story than we show here. The documents in this set have yet to be incorporated into standard accounts of the events of this period.
  • Among the highlights of today’s posting: White House officials of the Ford administration attempted to keep a presidential review panel—the Rockefeller Commission—from investigating reports of CIA planning for assassinations abroad. Ford administration officials suppressed the Rockefeller Commission’s actual report on CIA assassination plots. Richard Cheney, then the deputy assistant to the president, edited the report of the Rockefeller Commission from inside the Ford White House, stripping the report of its independent character. The Rockefeller Commission remained silent on this manipulation. Rockefeller Commission lawyers and public relations officials warned of the damage that would be done to the credibility of the entire investigation by avoiding the subject of assassinations. President Ford passed investigative materials concerning assassinations along to the Church Committee of the United States Senate and then attempted—but failed—to suppress the Church Committee’s report as well. The White House markup of the Rockefeller Commission report used the secrecy of the CIA budget as an example of excesses and recommended Congress consider making agency spending public to some degree.
Paul Merrell

Mastermind of The Bamako Terror Attack Mokhtar Belmokhtar: A CIA Sponsored "Intelligenc... - 0 views

  • In response to the tragic Paris events of November 13, Central Intelligence Agency director  John Brennan  warned that “ISIL is planning additional attacks… It is clear to me that ISIL has an external agenda, that they are determined to carry out these types of attacks.” (Quoted in Daily Telegraph, November 16, 2015) Five days later following the CIA Chief’s  premonition, the Bamako Radisson Hotel Blu in Mali’s capital was the object of a terrorist attack, resulting in  21 people dead. Following the attack and the taking of hostages by the terrorists, French and Malian special forces raided the hotel. US. Africa Command (AFRICOM) also confirmed that US special forces were involved.
  • The Bamako terror operation was allegedly coordinated by Mokhtar Belmokhtar (aka Khaled Abu al-Abbas), leader of an affiliate of Al Qaeda in the Islamic Maghreb (AQIM), the Islamist al-Mulathameen (Masked) Brigade, or “Those who Sign with Blood.” Belmokhtar’s group was created in 2012 in the wake of the war on Libya. His organization has also allegedly been involved in the drug trade, smuggling as well kidnapping operations of foreigners in North Africa.  While his whereabouts are said to be known, French intelligence has dubbed Belmokhtar “the uncatchable”. In June he was reported dead  as a result in a U.S. air strike in Libya. His death was subsequently denied. Based on shaky evidence, The New York Times report below (November 20) concludes that Belmokhtar’s group (together with AQIM) is unequivocally behind the Bamako attacks:
  • A member of Al Qaeda in Africa confirmed Saturday that the attack Friday on a hotel in Bamako, Mali, had been carried out by a jihadist group loyal to Mokhtar Belmokhtar, an Algerian operative for Al Qaeda. The Qaeda member, who spoke via an online chat, said that an audio message and a similar written statement in which the group claimed responsibility for the attack were authentic. The SITE Intelligence Group, which monitors jihadist groups, also confirmed the authenticity of the statement. The Qaeda member, who refused to be named for his protection, said that Mr. Belmokhtar’s men had collaborated with the Saharan Emirate of Al Qaeda in the Islamic Maghreb, … In the audio recording, the group, known as Al Mourabitoun, says it carried out the operation in conjunction with Al Qaeda’s branch in the Islamic Maghreb. The recording was released to the Al Jazeera network and simultaneously to Al Akhbar, … The recording states: “We, in the group of the Mourabitoun [Arabic Rebel Group], in cooperation with our brothers in Al Qaeda in Islamic Maghreb, the great desert area, claim responsibility for the hostage-taking operation in the Radisson hotel in Bamako.” (emphasis added)
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  • In turn, the French Minister of Defense acknowledged –prior to the conduct of a police investigation– that the authors of the attack were “most likely” led by Mokhtar Belmokhtar’s group in association with Al Qaeda in the Islamic Maghreb (AQIM). What Defense Minister Jean-Yves Le Drain failed to mention was that both Belmokhtar and AQIM have longstanding links to the CIA, which in turn has a working relationship with France’s  General Directorate for External Security, Direction générale de la sécurité extérieure (DGSE).  Casually ignored by the Western media, the leaders of Al Qaeda in the Islamic Maghreb (AQIM) including Belmokhtar were trained and recruited by the CIA in Afghanistan. Acknowledged by the Washington based Council on Foreign Relations (CFR): Most of AQIM’s major leaders are believed to have trained in Afghanistan during the 1979-1989 war against the Soviets as part of a group of North African volunteers known as “Afghan Arabs” that returned to the region and radicalized Islamist movements in the years that followed. The group is divided into “katibas” or brigades, which are clustered into different and often independent cells. The group’s top leader, or emir, since 2004 has been  Abdelmalek Droukdel, also known as Abou Mossab Abdelwadoud, a trained engineer and explosives expert who has fought in Afghanistan and has roots with the GIA in Algeria. (Council on Foreign Relations, Al Qaeda in the Islamic Maghreb, cfr.org, undated)
  • Mokhtar Belmokhtar: Post Cold War CIA intelligence asset?  The Council on Foreign Relations erroneously describes “Mokhtar Belmokhtar as the one-eyed veteran of the anti-Soviet Afghan insurgency.” (CFR, op cit, emphasis added). Belmokhtar (born in 1972) did not fight in the Soviet-Afghan war (1979-1989). He was recruited in 1991 at the age of 19 in the immediate wake of the Cold War. CIA recruitment continued in the wake of the Cold War. It was in large part directed against the Russian Federation and the former Soviet Republics as well as the Middle East. The purpose of this later CIA recruitment was to establish a network of “intelligence assets” to be used in the CIA’s post-cold war insurgencies. Leaders of the Chechen Islamist insurgencies were also trained in CIA camps in Afghanistan and Pakistan, including the notorious leader of the Chechen insurrection Ibn al-Khattab (a citizen of Saudi Arabia).
  • Following his training and recruitment and a two year stint in Afghanistan (1991-1993), Mokhtar Belmokhtar was sent back to Algeria in 1993 at age 21 where he joined the  Salafist Group for Preaching and Combat (GSPC) (emblem left). The latter was initially part of the so-called Armed Islamic Group  (Groupe islamique armé (GIA)) in Algeria which sought to overthrow the secular Algerian Government with a view to installing a theocratic Islamic State. Supported covertly by the CIA, Belmokhtar fought in Southern Algeria in the civil war opposing Islamist forces and the secular government. He was also  instrumental in the integration and merging of “jihadist” forces. In January 2007,  the Armed islamic Group (GIA) which had been prominent in the 1990s, officially changed its name to the Al-Qaeda Organization in the Islamic Maghreb (AQIM). In turn, as of 2007, the newly formed AQIM established a close relationship with the Libya Islamic Fighting Group (LIFG), which was directly supported by NATO during the 2011 war on Libya, “providing weapons, training, special forces and even aircraft to support them in the overthrow of Libya’s government.” (Tony Cartalucci, The Geopolitical Reordering of Africa: US Covert Support to Al Qaeda in Northern Mali, France “Comes to the Rescue”, Global Research, January 2013). British SAS Special Forces had also been brought into Libya prior to the onset of the insurrection, acting as military advisers to the LIFG. In fact, what has unfolded since the war on Libya is the merging of LIFG and AQIM forces. In turn, many of the LIFG operatives have been dispatched to Syria to fight within the ranks of Al Nusrah and the ISIS.
  • It is worth noting that the 2007  restructuring  of jihadist forces in Algeria and the Maghreb coincided with  the appointment of Robert Stephen Ford as US ambassador to Algeria in August 2006. Ford had been reassigned by the State Department from Baghdad to Algiers. From 2004 to 2006, he worked closely with Ambassador John Negroponte at the US embassy in Baghdad in supporting the creation of  both Shia and Sunni death squads in Iraq. This project consisted in recruiting and training terrorists modelled on the so-called “Salvador Option” which had been applied by the CIA in Central America. Negroponte as we recall played a central role in supporting the Contras terrorists in Nicaragua as ambassador to Honduras from 1981-1985. For further details see Michel Chossudovsky, “The Salvador Option For Syria”: US-NATO Sponsored Death Squads Integrate “Opposition Forces”, Global Research,  May 28, 2012) The 2006 appointment of Robert Stephen Ford to head the US Embassy in Algeria was timely. It coincided with the consolidation of jihadist groups within Algeria and the Maghreb. It preceded the 2011 US-NATO sponsored insurrections in Libya and Syria. In 2010, Ford was approved by the US Congress as US Ambassador to Syria. He presented his credentials to president Bashar al Assad in January 2011, barely two months prior to the onslaught of the terrorist insurrection in the border city of Daraa in mid-March 2011. Ford played a central role in assisting the channelling of US and allied support to Syrian “opposition” groups including Al Nusrah and the ISIS.
  • Belmokhtar’s history and involvement in Afghanistan confirms that from the very outset he was an instrument of US intelligence. While, he operates with a certain degree of independence and autonomy in relation to his intelligence sponsors, he and his organization are bona fide CIA “intelligence assets”, which can be used by the CIA as part of a covert agenda. There are various definitions of  an “intelligence asset”. From the standpoint of US intelligence, “assets” linked up to terrorist organizations must not be aware that they are supported and monitored by Western intelligence. With regard to Al Qaeda, from the outset in 1979, the CIA chose to operate through various front organizations as well as indirectly through its Saudi, Qatari and Pakistani intelligence partners. CIA’s Milton Beardman who played a central role in the Soviet Afghan war confirms that members of Al Qaeda including Osama bin Laden were not aware of the role they were playing on behalf of Washington. In the words of bin Laden (quoted by Beardman): “neither I, nor my brothers saw evidence of American help”(Michel Chossudovsky, Who is Osama bin Laden, Global Research, September 12, 2001): Motivated by nationalism and religious fervor, the Islamic warriors were unaware that they were fighting the Soviet Army on behalf of Uncle Sam. While there were contacts at the upper levels of the intelligence hierarchy, Islamic rebel leaders in theatre had no contacts with Washington or the CIA.  (Ibid) Amply documented, Al Qaeda in the Islamic Maghreb (AQIM)and its affiliated groups including the Libya Islamic Fighting Group (LIFG) was serving the interests of the Western military alliance. Confirmed by the Washington Post, June 29, 2011 (See below), France was supplying weapons to the LIFG at the height of NATO’s bombing raids.
  • AQIM in turn was receiving weapons from the LIFG, which was supported by NATO. Moreover, LIFG mercenaries had integrated AQIM brigades. According to alleged Terror Mastermind Mokhtar Belmokhtar, who also coordinated the 2013 In Amenas Mali kidnapping operation: “We have been one of the main beneficiaries of the revolutions in the Arab world. As for our benefiting from the (Libyan) weapons, this is a natural thing in these kinds of circumstances.” http://www.hanford.gov/c.cfm/oci/ci_terrorist.cfm?dossier=174 Al Qaeda in the Islamic Maghreb (AQIM) is indelibly tied into a Western intelligence agenda. While it is described  as  ”one of the region’s wealthiest, best-armed militant groups”, financed covertly by Saudi Arabia and Qatar. France’s  Canard enchaîné revealed (June 2012) that Qatar (a staunch ally of the United States) has been funding various terrorist entities in Mali: The original report cites a French military intelligence report as indicating that Qatar has provided financial support to all three of the main armed groups in northern Mali: Iyad Ag Ghali’s Ansar Ed-Dine, al-Qa’ida in the Islamic Maghreb (AQIM) and the Movement for Unity and Jihad in West Africa (MUJWA). The amount of funding given to each of the groups is not mentioned but it mentions that repeated reports from the French DGSE to the Defense Ministry have mentioned Qatar’s support for ‘terrorism’ in northern Mali. (quoted by Jeune Afrique June 2012)
  • Qatar is a proxy state, a de facto Persian Gulf territory largely controlled by Washington. It hosts  a number of Western military and intelligence facilities. The Emir of Qatar does not finance terrorism without the consent of the CIA. And with regard to Mali, the CIA coordinates its activities in liaison with its French intelligence partners and counterparts, including la Direction du renseignement militaire (DRM) and the Direction générale de la sécurité extérieure (DGSE). The implications are obvious and should be carefully understood by Western public opinion. Inasmuch as Belmokhtar and AQIM are “intelligence assets”, both US and French intelligence are (indirectly) behind the Bamako attacks. Both US and French intelligence are complicit in the State sponsorship of terrorism.
Paul Merrell

Bowe Bergdahl to Face Court-Martial on Desertion Charges - The New York Times - 0 views

  • A top Army commander on Monday ordered that Sgt. Bowe Bergdahl face a court-martial on charges of desertion and endangering troops stemming from his decision to leave his outpost in 2009, a move that prompted a huge manhunt in the wilds of eastern Afghanistan and landed him in nearly five years of harsh Taliban captivity. The decision by Gen. Robert B. Abrams, head of Army Forces Command at Fort Bragg, N.C., means that Sergeant Bergdahl, 29, faces a possible life sentence. That is a far more serious penalty than had been recommended by the Army’s investigating officer, who testified at the sergeant’s preliminary hearing in September that prison would be “inappropriate.”
  • According to Sergeant Bergdahl’s defense lawyers, the Army lawyer who presided over the preliminary hearing also recommended that he face neither jail time nor a punitive discharge and that he go before an intermediate tribunal known as a “special court-martial,” where the most severe penalty possible would be a year of confinement.
  • Monday’s decision rejecting that recommendation means that Sergeant Bergdahl now faces a maximum five-year penalty if ultimately convicted by a military jury of desertion, as well as potential life imprisonment on the more serious charge of misbehavior before the enemy, which in this case means endangering the troops who were sent to search for him after he disappeared.Sergeant Bergdahl has been the focus of attacks by Republicans in Congress and on the presidential campaign, and it is far from clear that General Abrams’s decision will temper their criticisms.Donald J. Trump, for one, has called the sergeant a “traitor” who should be executed, while Senator John McCain, Republican of Arizona and the chairman of the Armed Services Committee, has vowed to hold hearings if the sergeant is not punished.
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  • Last week, House Republicans issued a report portraying as reckless and illegal Mr. Obama’s decision in May 2014 to swap Sergeant Bergdahl for five Taliban detainees who were being held at Guantánamo Bay, Cuba.
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    A shame. There's a strong appearance that politics is playing a strong role in the military decision to prosecute Bergdahl. But 5 years in captivity would seem to be punishment enough to me.
Paul Merrell

Cy Vance's Proposal to Backdoor Encrypted Devices Is Riddled With Vulnerabilities | Jus... - 0 views

  • Less than a week after the attacks in Paris — while the public and policymakers were still reeling, and the investigation had barely gotten off the ground — Cy Vance, Manhattan’s District Attorney, released a policy paper calling for legislation requiring companies to provide the government with backdoor access to their smartphones and other mobile devices. This is the first concrete proposal of this type since September 2014, when FBI Director James Comey reignited the “Crypto Wars” in response to Apple’s and Google’s decisions to use default encryption on their smartphones. Though Comey seized on Apple’s and Google’s decisions to encrypt their devices by default, his concerns are primarily related to end-to-end encryption, which protects communications that are in transit. Vance’s proposal, on the other hand, is only concerned with device encryption, which protects data stored on phones. It is still unclear whether encryption played any role in the Paris attacks, though we do know that the attackers were using unencrypted SMS text messages on the night of the attack, and that some of them were even known to intelligence agencies and had previously been under surveillance. But regardless of whether encryption was used at some point during the planning of the attacks, as I lay out below, prohibiting companies from selling encrypted devices would not prevent criminals or terrorists from being able to access unbreakable encryption. Vance’s primary complaint is that Apple’s and Google’s decisions to provide their customers with more secure devices through encryption interferes with criminal investigations. He claims encryption prevents law enforcement from accessing stored data like iMessages, photos and videos, Internet search histories, and third party app data. He makes several arguments to justify his proposal to build backdoors into encrypted smartphones, but none of them hold water.
  • Before addressing the major privacy, security, and implementation concerns that his proposal raises, it is worth noting that while an increase in use of fully encrypted devices could interfere with some law enforcement investigations, it will help prevent far more crimes — especially smartphone theft, and the consequent potential for identity theft. According to Consumer Reports, in 2014 there were more than two million victims of smartphone theft, and nearly two-thirds of all smartphone users either took no steps to secure their phones or their data or failed to implement passcode access for their phones. Default encryption could reduce instances of theft because perpetrators would no longer be able to break into the phone to steal the data.
  • Vance argues that creating a weakness in encryption to allow law enforcement to access data stored on devices does not raise serious concerns for security and privacy, since in order to exploit the vulnerability one would need access to the actual device. He considers this an acceptable risk, claiming it would not be the same as creating a widespread vulnerability in encryption protecting communications in transit (like emails), and that it would be cheap and easy for companies to implement. But Vance seems to be underestimating the risks involved with his plan. It is increasingly important that smartphones and other devices are protected by the strongest encryption possible. Our devices and the apps on them contain astonishing amounts of personal information, so much that an unprecedented level of harm could be caused if a smartphone or device with an exploitable vulnerability is stolen, not least in the forms of identity fraud and credit card theft. We bank on our phones, and have access to credit card payments with services like Apple Pay. Our contact lists are stored on our phones, including phone numbers, emails, social media accounts, and addresses. Passwords are often stored on people’s phones. And phones and apps are often full of personal details about their lives, from food diaries to logs of favorite places to personal photographs. Symantec conducted a study, where the company spread 50 “lost” phones in public to see what people who picked up the phones would do with them. The company found that 95 percent of those people tried to access the phone, and while nearly 90 percent tried to access private information stored on the phone or in other private accounts such as banking services and email, only 50 percent attempted contacting the owner.
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  • In addition to his weak reasoning for why it would be feasible to create backdoors to encrypted devices without creating undue security risks or harming privacy, Vance makes several flawed policy-based arguments in favor of his proposal. He argues that criminals benefit from devices that are protected by strong encryption. That may be true, but strong encryption is also a critical tool used by billions of average people around the world every day to protect their transactions, communications, and private information. Lawyers, doctors, and journalists rely on encryption to protect their clients, patients, and sources. Government officials, from the President to the directors of the NSA and FBI, and members of Congress, depend on strong encryption for cybersecurity and data security. There are far more innocent Americans who benefit from strong encryption than there are criminals who exploit it. Encryption is also essential to our economy. Device manufacturers could suffer major economic losses if they are prohibited from competing with foreign manufacturers who offer more secure devices. Encryption also protects major companies from corporate and nation-state espionage. As more daily business activities are done on smartphones and other devices, they may now hold highly proprietary or sensitive information. Those devices could be targeted even more than they are now if all that has to be done to access that information is to steal an employee’s smartphone and exploit a vulnerability the manufacturer was required to create.
  • Privacy is another concern that Vance dismisses too easily. Despite Vance’s arguments otherwise, building backdoors into device encryption undermines privacy. Our government does not impose a similar requirement in any other context. Police can enter homes with warrants, but there is no requirement that people record their conversations and interactions just in case they someday become useful in an investigation. The conversations that we once had through disposable letters and in-person conversations now happen over the Internet and on phones. Just because the medium has changed does not mean our right to privacy has.
  • Vance attempts to downplay this serious risk by asserting that anyone can use the “Find My Phone” or Android Device Manager services that allow owners to delete the data on their phones if stolen. However, this does not stand up to scrutiny. These services are effective only when an owner realizes their phone is missing and can take swift action on another computer or device. This delay ensures some period of vulnerability. Encryption, on the other hand, protects everyone immediately and always. Additionally, Vance argues that it is safer to build backdoors into encrypted devices than it is to do so for encrypted communications in transit. It is true that there is a difference in the threats posed by the two types of encryption backdoors that are being debated. However, some manner of widespread vulnerability will inevitably result from a backdoor to encrypted devices. Indeed, the NSA and GCHQ reportedly hacked into a database to obtain cell phone SIM card encryption keys in order defeat the security protecting users’ communications and activities and to conduct surveillance. Clearly, the reality is that the threat of such a breach, whether from a hacker or a nation state actor, is very real. Even if companies go the extra mile and create a different means of access for every phone, such as a separate access key for each phone, significant vulnerabilities will be created. It would still be possible for a malicious actor to gain access to the database containing those keys, which would enable them to defeat the encryption on any smartphone they took possession of. Additionally, the cost of implementation and maintenance of such a complex system could be high.
  • Vance also suggests that the US would be justified in creating such a requirement since other Western nations are contemplating requiring encryption backdoors as well. Regardless of whether other countries are debating similar proposals, we cannot afford a race to the bottom on cybersecurity. Heads of the intelligence community regularly warn that cybersecurity is the top threat to our national security. Strong encryption is our best defense against cyber threats, and following in the footsteps of other countries by weakening that critical tool would do incalculable harm. Furthermore, even if the US or other countries did implement such a proposal, criminals could gain access to devices with strong encryption through the black market. Thus, only innocent people would be negatively affected, and some of those innocent people might even become criminals simply by trying to protect their privacy by securing their data and devices. Finally, Vance argues that David Kaye, UN Special Rapporteur for Freedom of Expression and Opinion, supported the idea that court-ordered decryption doesn’t violate human rights, provided certain criteria are met, in his report on the topic. However, in the context of Vance’s proposal, this seems to conflate the concepts of court-ordered decryption and of government-mandated encryption backdoors. The Kaye report was unequivocal about the importance of encryption for free speech and human rights. The report concluded that:
  • States should promote strong encryption and anonymity. National laws should recognize that individuals are free to protect the privacy of their digital communications by using encryption technology and tools that allow anonymity online. … States should not restrict encryption and anonymity, which facilitate and often enable the rights to freedom of opinion and expression. Blanket prohibitions fail to be necessary and proportionate. States should avoid all measures that weaken the security that individuals may enjoy online, such as backdoors, weak encryption standards and key escrows. Additionally, the group of intelligence experts that was hand-picked by the President to issue a report and recommendations on surveillance and technology, concluded that: [R]egarding encryption, the U.S. Government should: (1) fully support and not undermine efforts to create encryption standards; (2) not in any way subvert, undermine, weaken, or make vulnerable generally available commercial software; and (3) increase the use of encryption and urge US companies to do so, in order to better protect data in transit, at rest, in the cloud, and in other storage.
  • The clear consensus among human rights experts and several high-ranking intelligence experts, including the former directors of the NSA, Office of the Director of National Intelligence, and DHS, is that mandating encryption backdoors is dangerous. Unaddressed Concerns: Preventing Encrypted Devices from Entering the US and the Slippery Slope In addition to the significant faults in Vance’s arguments in favor of his proposal, he fails to address the question of how such a restriction would be effectively implemented. There is no effective mechanism for preventing code from becoming available for download online, even if it is illegal. One critical issue the Vance proposal fails to address is how the government would prevent, or even identify, encrypted smartphones when individuals bring them into the United States. DHS would have to train customs agents to search the contents of every person’s phone in order to identify whether it is encrypted, and then confiscate the phones that are. Legal and policy considerations aside, this kind of policy is, at the very least, impractical. Preventing strong encryption from entering the US is not like preventing guns or drugs from entering the country — encrypted phones aren’t immediately obvious as is contraband. Millions of people use encrypted devices, and tens of millions more devices are shipped to and sold in the US each year.
  • Finally, there is a real concern that if Vance’s proposal were accepted, it would be the first step down a slippery slope. Right now, his proposal only calls for access to smartphones and devices running mobile operating systems. While this policy in and of itself would cover a number of commonplace devices, it may eventually be expanded to cover laptop and desktop computers, as well as communications in transit. The expansion of this kind of policy is even more worrisome when taking into account the speed at which technology evolves and becomes widely adopted. Ten years ago, the iPhone did not even exist. Who is to say what technology will be commonplace in 10 or 20 years that is not even around today. There is a very real question about how far law enforcement will go to gain access to information. Things that once seemed like merely science fiction, such as wearable technology and artificial intelligence that could be implanted in and work with the human nervous system, are now available. If and when there comes a time when our “smart phone” is not really a device at all, but is rather an implant, surely we would not grant law enforcement access to our minds.
  • Policymakers should dismiss Vance’s proposal to prohibit the use of strong encryption to protect our smartphones and devices in order to ensure law enforcement access. Undermining encryption, regardless of whether it is protecting data in transit or at rest, would take us down a dangerous and harmful path. Instead, law enforcement and the intelligence community should be working to alter their skills and tactics in a fast-evolving technological world so that they are not so dependent on information that will increasingly be protected by encryption.
Paul Merrell

Brazil's Epic Scandal Takes Down a Banker - Bloomberg Business - 0 views

  • Brazilians have become inured to seeing politicians and businessmen marched off to prison for corruption. But the mug shot of banker André Esteves—unshaven and frowning—that flashed across TV screens in early December was a shock. Part of a cadre of mavericks who got astonishingly rich from Brazil’s transformation into one of the world’s top 10 economies in the 2000s, Esteves helped turn Grupo BTG Pactual into Latin America’s biggest standalone investment bank. Supremely confident, Esteves—who was a billionaire by his mid-30s—liked to quip that the initials in his company’s name stood for “Better than Goldman.”Around dawn on Nov. 25, Esteves’s fortunes soured in an instant. Police showed up at his apartment, which faces Rio de Janeiro’s legendary Ipanema beach, and hauled him away on allegations of obstructing a federal investigation into a massive pay-to-play scheme centered on Brazil’s state-run oil giant, Petrobras. Now Esteves, 47, resides in a cell block with concrete beds and communal toilets at Bangu, a high-security prison in Rio better known for housing drug traffickers and murderers.
  • Having its founder, chief executive officer, and chairman behind bars has pushed BTG Pactual to the brink of insolvency as clients pull their money out. Within days of his arrest, Esteves had relinquished his controlling stake in the firm, and his partners had begun a wholesale selloff of assets. To avert disaster, Brazil’s central bank helped engineer a $1.6 billion rescue line from the country’s privately funded deposit guarantee fund. Still, the bank’s shares have lost half their value since Esteves’s arrest. On Dec. 7, prosecutors formally accused the banker of obstruction of justice. Antônio Carlos de Almeida Castro, Esteves’s lawyer, says his client has done nothing wrong.The metastatic graft scandal that sent Esteves to jail threatens more than the survival of BTG. So many legislators are implicated, Congress has been unable to pass legislation to contain an exploding budget deficit. President Dilma Rousseff has grown so unpopular that lawmakers are maneuvering to impeach her for allegedly cooking the government’s books. Meanwhile, the economy is sliding into what Goldman Sachs calls a full-blown depression.
  • BTG’s collapse won’t cause Brazil’s capital markets to seize up as Lehman Brothers’ failure did in the U.S. in 2008. Yet having one of the country’s most prominent financiers behind bars is a body blow to the confidence of investors at a time when Brazil needs their cash. “It very much gives you the impression that the corruption scheme is so widespread that it induces a kind of counterparty risk,” says Monica de Bolle, a former International Monetary Fund economist. “You enter into transactions with people in Brazil without knowing whether or not they might be implicated in something.” The result: “Nothing gets done. There’s no business,” she says.
Paul Merrell

Former public testimony disappears from Guantánamo transcripts | Miami Herald - 0 views

  • For hours on a Friday, a staff sergeant using the fake name “Jinx” testified in open court about her yearlong work here at a prison for suspected terrorists once considered the CIA’s prized war-on-terror captives.
  • The few reporters who went to court or watched on video feeds from Guantánamo to Fort Meade, Maryland, as well as a dozen legal observers and the mother and sister of a man killed in the World Trade Center on Sept. 11, 2001, heard her say all that in open court. But as far as the public court record is concerned, those things were never said.
  • In a first for the war court, intelligence agencies scrubbed those and other facts — including questions asked by the judge, Army Col. James L. Pohl — from a 379-page transcript of the Oct. 30 pretrial hearing in the 9/11 death-penalty case. A Miami Herald examination counted more than 130 pages with blacked out public testimony. Of them, 37 pages are completely redacted in the latest challenge to the remote war court’s motto, “Fairness, Transparency, Justice.” Typically the court releases the transcripts “word for word with no redactions,” chief prosecutor Brig. Gen. Mark Martins told reporters Saturday, defending the “rare” exception of “ex-post redactions” as a security necessity.“I have not encountered it actually thus far for a transcript to be redacted. But there is a rule that enables that,” he said. “The government is fully entitled to look and say in the aftermath … ‘It ought to be protected, it could be damaging.’”
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  • At issue on Oct. 30 was Pohl’s January restraining order forbidding female guards from touching the alleged Sept. 11 plotters as they come and go from court and legal meetings, an accommodation to their Islamic traditions. The restriction recently sparked outrage among top Pentagon brass and some in Congress. The issue is unlikely to be resolved before a closed session in February to hear classified testimony.But now, in light of the retroactive redacting, case lawyers and the Sept. 11 trial judge will spend Monday huddling in closed court — no public, none of the accused conspirators listening — as they discuss how to go forward with the testimony on Pohl’s controversial restraining order.Yale Law School lecturer Eugene Fidell, whose specialty has long been military justice, said the court has a 40-second audio delay to the public and a security officer assigned to block the feed with white noise and warned that the after-the-fact censorship could be “the new normal.”
  • “The military has a real allergy to transparency,” said Fidell after declaring himself dumfounded by the effort to “sanitize stuff that has already been uttered in open court.”“Obviously there are things that can and must be kept secret,” he said. “But to try to get the genie back in the bottle for information that has already been uttered in a public proceeding — especially where there’s a time delay to protect classified information — is preposterous.”
Paul Merrell

Martin Shkreli Arrested on Securities Fraud Charges - 0 views

  • Martin Shkreli, a boastful pharmaceutical executive who came under withering criticism for price gouging vital drugs, denied securities fraud charges on Thursday following an early morning arrest, and was freed on a $5 million bond. While the 32-year-old has earned a rare level of infamy for his brazenness in business and his personal life, what he was charged with had nothing to do with skyrocketing drug prices. He is accused of repeatedly losing money for investors and lying to them about it, illegally taking assets from one of his companies to pay off debtors in another. “Shkreli essentially ran his company like a Ponzi scheme where he used each subsequent company to pay off defrauded investors from the prior company,” Brooklyn U.S. Attorney Robert Capers said at a press conference.
  • Evan Greebel, a New York lawyer, who is alleged in the federal indictment to have helped Shkreli in his schemes, was also arrested and charged. Like Shkreli, he pleaded not guilty, and he was freed on a $1 million bond. Both men and their lawyers declined to comment after their court appearance.
  • Read the full text of the indictment here In the federal indictment and a complaint by the Securities and Exchange Commission, authorities say Shkreli began losing money and lying to investors from the time he began managing money. In his mid-20s, he got nine investors to place $3 million with him and at one point he had only $331. Securities fraud is hardly unheard of on Wall Streeet and the amounts involved here are nowhere near on the scale of Bernie Madoff. But Shkreli’s case has drawn such attention because of his defiant price-gouging and his own up-by-the-bootstraps history. The son of immigrants from Albania and Croatia who did janitorial work and raised him and his brothers in working-class Brooklyn, Shkreli seemed at first to embody the American dream and then to mock it. After dropping out of an elite Manhattan high school, he worked as an intern for Jim Cramer’s hedge fund as a 17-year-old and quickly impressed with his ability to call stocks. He created hedge funds, taught himself biology and, after earning a BA at Baruch College in New York City, began hedge funds investing in biotech.
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  • He became famous within a certain world but entered public consciousness after he raised the price more than 55-fold for Daraprim in September from $13.50 per pill to $750. It is the preferred treatment for a parasitic condition known as toxoplasmosis, which can be deadly for unborn babies and patients with compromised immune systems including those with HIV or cancer. His company, Turing Pharmaceuticals AG, bought the drug, moved it to a closed distribution system and instantly drove the price into the stratosphere. He drew shocked rebukes from Congress, doctors and presidential candidates, and brought public attention to the rising prices of older drugs. Donald Trump called Shkreli a “spoiled brat,” and the BBC dubbed him the “most hated man in America.” Bernie Sanders, the Democratic presidential candidate, rejected a $2,700 campaign donation from him, directing it to an HIV clinic. A spokesman said the campaign would not keep money “from this poster boy for drug company greed.” All the criticism seemed at first to have some impact and Shkreli said he would lower the price. Then he reneged. When Hillary Clinton tried one more time last month to get him to cut the cost, he dismissed her with the tweet “lol.” At a Forbes summit in New York this month, wearing a hooded sweatshirt, he said if he could have done it over, “I probably would have raised the price higher,” adding, “My investors expect me to maximize profits.”
  • Shkreli did further damage to his public image with other acts and boasts. He spent millions on the only copy of a Wu-Tang Clan album that music fans are desperate to hear and then told Bloomberg Businessweek that he had no immediate plans to listen to it. He takes often to Twitter and message boards, bragging about his business strategies, musical tastes and politics; he live-streams from his office for long stretches. The SEC complaint and federal indictment lay out a series of schemes and cover-ups carried out by Shkreli. Capers said authorities began investigating him as early as 2014.
  • Barely 23, he was managing hedge fund Elea Capital in New York and lost it all in 2007. Around then, a trade with Lehman Brothers ended with a $2.3 million judgment against him, prosecutors said. In 2010, he lost his clients’ $3 million investment in his new fund, MSMB Capital. In 2011, he bet that shares of Orexigen Therapeutics Inc. would fall and wound up owing $7 million to his broker, Merrill Lynch, authorities said. He couldn’t pay, and he, an unnamed accomplice and MSMB Capital eventually extinguished the debt with a $1.35 million settlement, they said. Part of that money came from his next firm, authorities said. After the collapse of MSMB Capital, Shkreli launched MSMB Healthcare with about $5 million from 13 investors. He paid himself “far in excess” of the agreed-upon 1 percent management fee and 20 percent profit incentive, according to the SEC.
  • Shkreli then used cash from MSMB Healthcare to invest in Retrophin, the pharmaceutical company he founded in 2011, even though it “had no products or assets,” prosecutors said. Later, he used the assets of Retrophin to repay angry investors in his hedge funds, prosecutors said. Shkreli is confident that he will be cleared of the charges, according to a statement on his behalf. Shkreli is particularly disappointed that his litigation with Retrophin has become a government enforcement matter, according to the statement. He also denied the charges regarding the MSMB entities, which he said involve complex accounting matters that prosecutors and the SEC fail to understand, according to the statement. “It is no coincidence that these charges, the result of investigations which have been languishing for considerable time, have been filed at the same time of Shkreli’s high-profile, controversial and yet unrelated activities,” according to the statement. “The government suggested that Mr. Shkreli was involved in a Ponzi scheme. Ponzi victims do not make money, yet Mr. Shkreli’s investors enjoyed strong results.”
  • As Shkreli’s losses mounted, so did his lies. He fabricated portfolio statements and, with his lawyer’s help, deceived the SEC and outside accountants. He backdated records, manufactured a phony loan agreement between Retrophin and a hedge fund, and created sham consulting agreements with Retrophin as a way to route the company’s cash to his earlier investors. Greebel, the arrested lawyer, made sure Retrophin’s outside accountants were unaware of Shkreli’s financial maneuvers and helped him concoct the consulting agreements used to repay the hedge fund investors, the U.S. said. The cases mirror a lawsuit brought by Retrophin. Shkreli blithely dismissed his old company’s claims, saying, “The $65 million Retrophin wants from me would not dent me. I feel great. I’m licking my chops over the suits I’m going to file against them.” Earlier, he had denied wrongdoing in a post on InvestorsHub after Retrophin disclosed it had received a subpoena from federal prosecutors and the preliminary findings from its own investigation of Shkreli. He called the company’s allegations “completely false, untrue at best and defamatory at worst.”
  • “Every transaction I’ve ever made at Retrophin was done with outside counsel’s blessing,” he said on the investment blog in February, without identifying the lawyers. When Shkreli was working for Cramer’s firm, he was still a teenager. After recommending successful trades, Shkreli eventually set up his own hedge fund, quickly developing a reputation for trashing biotechnology stocks in online chatrooms and shorting them, to enormous profit. Widely admired for his intellect and sharp eye, he set up Retrophin to develop drugs and acquire older pharmaceuticals that could be sold for higher profits. Turing, which is less than a year old and has raised $90 million in financing, has followed a similar strategy with the purchase of drugs, including Daraprim. Shkreli recently bought a majority stake in KaloBios Pharmaceuticals Inc. after Turing received a warning from the New York attorney general that the distribution network for Daraprim may violate antitrust laws. State officials made their concerns known to Turing and Shkreli in an Oct. 12 letter obtained by Bloomberg.
  • KaloBios recently acquired the license for benznidazole, a standard treatment for Chagas, a deadly parasitic infection most common in South and Central America. The firm announced plans to increase the cost from a couple hundred dollars for two months to a pricing structure like that for hepatitis-C drugs, which can run to nearly $100,000 for 12 weeks.
  • With the federal charges and regulatory actions, Shkreli could be banned from running a public company, which could put the future of KaloBios into question. Trading in KaloBios shares was halted after the stock fell 53 percent. It’s less clear what the impact could be on Turing, which is closely held.
  • Federal authorities will have to ask a judge to impose an asset freeze if they want to guarantee Shkreli doesn’t dispose of ill-gotten gains. The charges suggest that a small group of health-care firms—ones that acquire the rights to drugs and significantly increase their prices—is drawing the scrutiny of regulators and prosecutors, with a possible chilling effect on aggressive drug-pricing strategies. Legislators are already paying attention. A hearing of the Senate Special Committee on Aging on Dec. 9 scrutinized such tactics. Before Shkreli started Turing, Retrophin raised the price of Thiola, used to treat a rare condition causing debilitating recurrences of kidney stones, from $1.50 a pill to $30. “Some of these companies seem to act more like hedge funds than traditional pharmaceutical companies,” said Senator Susan Collins, a Maine Republican who ran the recent hearing. George Scangos, CEO of biotechnology giant Biogen Inc., went further, saying in an interview, “Turing is to a research-based company like a loan shark is to a legitimate bank.”
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    Couldn't happen to a nicer guy.
Paul Merrell

A Simple Solution to Puerto Rican Debt Crisis | Al Jazeera America - 0 views

  • While Puerto Rican leaders look for ways to address the island’s $72 billion debt, some say the solution may be simple: Don’t pay it. A small group of Puerto Rican lawmakers is pushing the idea that significant portions of Puerto Rico’s debt may in fact be unconstitutional. Manuel Natal, one of the legislators behind the effort, claims that up to 75 percent of what the island owes could be voided in court. “If debt was issued in violation of the constitution that debt is illegal and subsequently should not be paid,” said Natal. “It should be put aside, because in legal terms, it’s like it never happened.” This strategy, called “debt nullification,” has been used elsewhere in the U.S. to address fiscal crises. But in Puerto Rico's case, it all but promises a legal showdown with Wall Street hedge funds that own a significant portion of the island’s debt — investors that the government is now trying to bargain with. While Puerto Rico Governor Alejandro García Padilla has acknowledged that debt found to be unconstitutional should not be repaid, his administration has tried nearly every other option so far.
  • After the White House quickly dismissed talk of a federal bailout, Puerto Rico’s government, and its congressional representative Luis Pierlusi, have pushed a bill to allow the U.S. territory access to bankruptcy proceedings. That bill has stalled in the Congress. Meanwhile, talks with a group of hedge funds were suspended. The gridlock over Puerto Rico’s fiscal crisis has led many to wish the debt would simply disappear. Now, that might actually be possible.
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    Later in the article, the reasoning behind the argument that 3/4 of the debt is unconstitutional: the Puerto Rico legislature ignored a constitutional provision limiting annual debt to 15% of revenue, creating a dodgy organization serviced by a sales tax to evade the limit.   'Twould be pleasant to see some vulture capitalists get burned. 
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