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Paul Merrell

Saudi Press Just Accuses US Govt Of Carrying Out 9/11 Attacks - 0 views

  • In response to the U.S. Senate’s unanimous vote to allow 9/11 victims’ families to sue Saudi Arabia in federal court, a report published in the London-based Al-Hayat daily, by Saudi legal expert Katib al-Shammari, claims that the U.S. masterminded the terror attacks as a means of creating a nebulous “enemy” in order garner public support for a global war on terror. The report by al-Shammari, translated by the Middle East Media Research Institute (MEMRI), claims that long-standing American policy is “built upon the principle of advance planning and future probabilities,” which the U.S. has now turned toward the Saudi regime after being successfully employed against first the Taliban and al-Qaeda, then Saddam Hussein and his secular Baathist controlled Iraq. Al-Shammari claims the recent U.S. threats to “expose” documents implicating the Saudi government are simply the continuation of a U.S. policy, which he refers to as “victory by means of archive.” He highlights that during the initial invasion of Iraq, under George H.W. Bush, Saddam Hussein was left alive and in power to be used as “a bargaining chip,” but upon deciding that he was “no longer an ace up their sleeve” Washington moved to topple his government and install a U.S.-backed ruling party.
  • The terrorist attacks of 9/11 are now the “ace up the sleeve” of the U.S. government, according to al-Shammari. “September 11 is one of winning cards in the American archives, because all the wise people in the world who are experts on American policy and who analyze the images and the videos [of 9/11] agree unanimously that what happened in the [Twin] Towers was a purely American action, planned and carried out within the U.S. Proof of this is the sequence of continuous explosions that dramatically ripped through both buildings… Expert structural engineers demolished them with explosives, while the planes crashing [into them] only gave the green light for the detonation – they were not the reason for the collapse. But the U.S. still spreads blame in all directions. [This policy] can be dubbed ‘victory by means of archives.” The impetus behind the attacks, writes al-Shammari, was to create “an obscure enemy – terrorism – which became what American presidents blamed for all their mistakes” and that would provide justification for any “dirty operation” in any nation. According to al-Shammari’s report in Al-Hayat: “On September 11, the U.S. attained several victories at the same time, that [even] the hawks [who were at that time] in the White House could not have imagined. Some of them can be enumerated as follows:
  • 1. The U.S. created, in public opinion, an obscure enemy – terrorism – which became what American presidents blamed for all their mistakes, and also became the sole motivation for any dirty operation that American politicians and military figures desire to carry out in any country. [The] terrorism [label] was applied to Muslims, and specifically to Saudi Arabia. 2. Utilizing this incident [9/11], the U.S. launched a new age of global armament. Everyone wanted to acquire all kinds of weapons to defend themselves and at the same time battle the obscure enemy, terrorism – [even though] up to this very moment we do not know the essence of this terrorism of which the U.S. speaks, except [to say that] that it is Islamic… 3. The U.S. made the American people choose from two bad options: either live peacefully [but] remain exposed to the danger of death [by terrorism] at any moment, or starve in safety, because [the country’s budget will be spent on sending] the Marines even as far as Mars to defend you.” The Saudi press has been in a frenzy since the unanimous Senate vote to allow for the House of Saud to be held liable in U.S. federal court for the 9/11 attacks, with the U.S. being accused of being in alliance with Iran – to press warnings that passage of the “Satanic” bill would “open the gates of hell,” as reported by Breitbart.
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  • Al-Shammari makes extremely clear that he views the problem as the U.S. imperial machine itself, stating, “the nature of the U.S. is that it cannot exist without an enemy.” The nature of the U.S. is that it cannot exist without an enemy… [For example,] after a period during which it did not fight anyone [i.e. following World War II], the U.S. created a new kind of war – the Cold War… Then, when the Soviet era ended, after we Muslims helped the religions and fought Communism on their [the Americans’] behalf, they began to see Muslims as their new enemy! The U.S. saw a need for creating a new enemy – and planned, organized, and carried this out [i.e. blamed Muslims for terrorism]. This will never end until it [the U.S.] accomplishes the goals it has set for itself. While it seems fighting Islamic terrorism is great for increasing fear and State propaganda meant to elicit compliant civilian populations that passively accept loss of liberty for promises of greater security, the military-industrial complex needs a bigger enemy to justify their $600 billion dollar-a-year budgets, thus beginning the transition to labeling Russia/China as “aggressive Russia/China,” in an effort to begin to pivot away from one bogeyman to other, more profitable, ones.
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    Has the ring of plausability to it although it seems to ignore the Israeli role. 
Paul Merrell

Edward Snowden: A 'Nation' Interview | The Nation - 0 views

  • Snowden: That’s the key—to maintain the garden of liberty, right? This is a generational thing that we must all do continuously. We only have the rights that we protect. It doesn’t matter what we say or think we have. It’s not enough to believe in something; it matters what we actually defend. So when we think in the context of the last decade’s infringements upon personal liberty and the last year’s revelations, it’s not about surveillance. It’s about liberty. When people say, “I have nothing to hide,” what they’re saying is, “My rights don’t matter.” Because you don’t need to justify your rights as a citizen—that inverts the model of responsibility. The government must justify its intrusion into your rights. If you stop defending your rights by saying, “I don’t need them in this context” or “I can’t understand this,” they are no longer rights. You have ceded the concept of your own rights. You’ve converted them into something you get as a revocable privilege from the government, something that can be abrogated at its convenience. And that has diminished the measure of liberty within a society.
  • From the very beginning, I said there are two tracks of reform: there’s the political and the technical. I don’t believe the political will be successful, for exactly the reasons you underlined. The issue is too abstract for average people, who have too many things going on in their lives. And we do not live in a revolutionary time. People are not prepared to contest power. We have a system of education that is really a sort of euphemism for indoctrination. It’s not designed to create critical thinkers. We have a media that goes along with the government by parroting phrases intended to provoke a certain emotional response—for example, “national security.” Everyone says “national security” to the point that we now must use the term “national security.” But it is not national security that they’re concerned with; it is state security. And that’s a key distinction. We don’t like to use the phrase “state security” in the United States because it reminds us of all the bad regimes. But it’s a key concept, because when these officials are out on TV, they’re not talking about what’s good for you. They’re not talking about what’s good for business. They’re not talking about what’s good for society. They’re talking about the protection and perpetuation of a national state system. I’m not an anarchist. I’m not saying, “Burn it to the ground.” But I’m saying we need to be aware of it, and we need to be able to distinguish when political developments are occurring that are contrary to the public interest. And that cannot happen if we do not question the premises on which they’re founded. And that’s why I don’t think political reform is likely to succeed. [Senators] Udall and Wyden, on the intelligence committee, have been sounding the alarm, but they are a minority.
  • The Nation: Every president—and this seems to be confirmed by history—will seek to maximize his or her power, and will see modern-day surveillance as part of that power. Who is going to restrain presidential power in this regard? Snowden: That’s why we have separate and co-equal branches. Maybe it will be Congress, maybe not. Might be the courts, might not. But the idea is that, over time, one of these will get the courage to do so. One of the saddest and most damaging legacies of the Bush administration is the increased assertion of the “state secrets” privilege, which kept organizations like the ACLU—which had cases of people who had actually been tortured and held in indefinite detention—from getting their day in court. The courts were afraid to challenge executive declarations of what would happen. Now, over the last year, we have seen—in almost every single court that has had this sort of national-security case—that they have become markedly more skeptical. People at civil-liberties organizations say it’s a sea change, and that it’s very clear judges have begun to question more critically assertions made by the executive. Even though it seems so obvious now, it is extraordinary in the context of the last decade, because courts had simply said they were not the best branch to adjudicate these claims—which is completely wrong, because they are the only nonpolitical branch. They are the branch that is specifically charged with deciding issues that cannot be impartially decided by politicians. The power of the presidency is important, but it is not determinative. Presidents should not be exempted from the same standards of reason and evidence and justification that any other citizen or civil movement should be held to.
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  • The Nation: Explain the technical reform you mentioned. Snowden: We already see this happening. The issue I brought forward most clearly was that of mass surveillance, not of surveillance in general. It’s OK if we wiretap Osama bin Laden. I want to know what he’s planning—obviously not him nowadays, but that kind of thing. I don’t care if it’s a pope or a bin Laden. As long as investigators must go to a judge—an independent judge, a real judge, not a secret judge—and make a showing that there’s probable cause to issue a warrant, then they can do that. And that’s how it should be done. The problem is when they monitor all of us, en masse, all of the time, without any specific justification for intercepting in the first place, without any specific judicial showing that there’s a probable cause for that infringement of our rights.
  • Since the revelations, we have seen a massive sea change in the technological basis and makeup of the Internet. One story revealed that the NSA was unlawfully collecting data from the data centers of Google and Yahoo. They were intercepting the transactions of data centers of American companies, which should not be allowed in the first place because American companies are considered US persons, sort of, under our surveillance authorities. They say, “Well, we were doing it overseas,” but that falls under a different Reagan-era authority: EO 12333, an executive order for foreign-intelligence collection, as opposed to the ones we now use domestically. So this one isn’t even authorized by law. It’s just an old-ass piece of paper with Reagan’s signature on it, which has been updated a couple times since then. So what happened was that all of a sudden these massive, behemoth companies realized their data centers—sending hundreds of millions of people’s communications back and forth every day—were completely unprotected, electronically naked. GCHQ, the British spy agency, was listening in, and the NSA was getting the data and everything like that, because they could dodge the encryption that was typically used. Basically, the way it worked technically, you go from your phone to Facebook.com, let’s say—that link is encrypted. So if the NSA is trying to watch it here, they can’t understand it. But what these agencies discovered was, the Facebook site that your phone is connected to is just the front end of a larger corporate network—that’s not actually where the data comes from. When you ask for your Facebook page, you hit this part and it’s protected, but it has to go on this long bounce around the world to actually get what you’re asking for and go back. So what they did was just get out of the protected part and they went onto the back network. They went into the private network of these companies.
  • The Nation: The companies knew this? Snowden: Companies did not know it. They said, “Well, we gave the NSA the front door; we gave you the PRISM program. You could get anything you wanted from our companies anyway—all you had to do was ask us and we’re gonna give it to you.” So the companies couldn’t have imagined that the intelligence communities would break in the back door, too—but they did, because they didn’t have to deal with the same legal process as when they went through the front door. When this was published by Barton Gellman in The Washington Post and the companies were exposed, Gellman printed a great anecdote: he showed two Google engineers a slide that showed how the NSA was doing this, and the engineers “exploded in profanity.” Another example—one document I revealed was the classified inspector general’s report on a Bush surveillance operation, Stellar Wind, which basically showed that the authorities knew it was unlawful at the time. There was no statutory basis; it was happening basically on the president’s say-so and a secret authorization that no one was allowed to see. When the DOJ said, “We’re not gonna reauthorize this because it is not lawful,” Cheney—or one of Cheney’s advisers—went to Michael Hayden, director of the NSA, and said, “There is no lawful basis for this program. DOJ is not going to reauthorize it, and we don’t know what we’re going to do. Will you continue it anyway on the president’s say-so?” Hayden said yes, even though he knew it was unlawful and the DOJ was against it. Nobody has read this document because it’s like twenty-eight pages long, even though it’s incredibly important.
  • The big tech companies understood that the government had not only damaged American principles, it had hurt their businesses. They thought, “No one trusts our products anymore.” So they decided to fix these security flaws to secure their phones. The new iPhone has encryption that protects the contents of the phone. This means if someone steals your phone—if a hacker or something images your phone—they can’t read what’s on the phone itself, they can’t look at your pictures, they can’t see the text messages you send, and so forth. But it does not stop law enforcement from tracking your movements via geolocation on the phone if they think you are involved in a kidnapping case, for example. It does not stop law enforcement from requesting copies of your texts from the providers via warrant. It does not stop them from accessing copies of your pictures or whatever that are uploaded to, for example, Apple’s cloud service, which are still legally accessible because those are not encrypted. It only protects what’s physically on the phone. This is purely a security feature that protects against the kind of abuse that can happen with all these things being out there undetected. In response, the attorney general and the FBI director jumped on a soap box and said, “You are putting our children at risk.”
  • The Nation: Is there a potential conflict between massive encryption and the lawful investigation of crimes? Snowden: This is the controversy that the attorney general and the FBI director were trying to create. They were suggesting, “We have to be able to have lawful access to these devices with a warrant, but that is technically not possible on a secure device. The only way that is possible is if you compromise the security of the device by leaving a back door.” We’ve known that these back doors are not secure. I talk to cryptographers, some of the leading technologists in the world, all the time about how we can deal with these issues. It is not possible to create a back door that is only accessible, for example, to the FBI. And even if it were, you run into the same problem with international commerce: if you create a device that is famous for compromised security and it has an American back door, nobody is gonna buy it. Anyway, it’s not true that the authorities cannot access the content of the phone even if there is no back door. When I was at the NSA, we did this every single day, even on Sundays. I believe that encryption is a civic responsibility, a civic duty.
  • The Nation: Some years ago, The Nation did a special issue on patriotism. We asked about a hundred people how they define it. How do you define patriotism? And related to that, you’re probably the world’s most famous whistleblower, though you don’t like that term. What characterization of your role do you prefer? Snowden: What defines patriotism, for me, is the idea that one rises to act on behalf of one’s country. As I said before, that’s distinct from acting to benefit the government—a distinction that’s increasingly lost today. You’re not patriotic just because you back whoever’s in power today or their policies. You’re patriotic when you work to improve the lives of the people of your country, your community and your family. Sometimes that means making hard choices, choices that go against your personal interest. People sometimes say I broke an oath of secrecy—one of the early charges leveled against me. But it’s a fundamental misunderstanding, because there is no oath of secrecy for people who work in the intelligence community. You are asked to sign a civil agreement, called a Standard Form 312, which basically says if you disclose classified information, they can sue you; they can do this, that and the other. And you risk going to jail. But you are also asked to take an oath, and that’s the oath of service. The oath of service is not to secrecy, but to the Constitution—to protect it against all enemies, foreign and domestic. That’s the oath that I kept, that James Clapper and former NSA director Keith Alexander did not. You raise your hand and you take the oath in your class when you are on board. All government officials are made to do it who work for the intelligence agencies—at least, that’s where I took the oath.
  • The Nation: Creating a new system may be your transition, but it’s also a political act. Snowden: In case you haven’t noticed, I have a somewhat sneaky way of effecting political change. I don’t want to directly confront great powers, which we cannot defeat on their terms. They have more money, more clout, more airtime. We cannot be effective without a mass movement, and the American people today are too comfortable to adapt to a mass movement. But as inequality grows, the basic bonds of social fraternity are fraying—as we discussed in regard to Occupy Wall Street. As tensions increase, people will become more willing to engage in protest. But that moment is not now.
  • The Nation: You really think that if you could go home tomorrow with complete immunity, there wouldn’t be irresistible pressure on you to become a spokesperson, even an activist, on behalf of our rights and liberties? Indeed, wouldn’t that now be your duty? Snowden: But the idea for me now—because I’m not a politician, and I do not think I am as effective in this way as people who actually prepare for it—is to focus on technical reform, because I speak the language of technology. I spoke with Tim Berners-Lee, the guy who invented the World Wide Web. We agree on the necessity for this generation to create what he calls the Magna Carta for the Internet. We want to say what “digital rights” should be. What values should we be protecting, and how do we assert them? What I can do—because I am a technologist, and because I actually understand how this stuff works under the hood—is to help create the new systems that reflect our values. Of course I want to see political reform in the United States. But we could pass the best surveillance reforms, the best privacy protections in the history of the world, in the United States, and it would have zero impact internationally. Zero impact in China and in every other country, because of their national laws—they won’t recognize our reforms; they’ll continue doing their own thing. But if someone creates a reformed technical system today—technical standards must be identical around the world for them to function together.
  • As for labeling someone a whistleblower, I think it does them—it does all of us—a disservice, because it “otherizes” us. Using the language of heroism, calling Daniel Ellsberg a hero, and calling the other people who made great sacrifices heroes—even though what they have done is heroic—is to distinguish them from the civic duty they performed, and excuses the rest of us from the same civic duty to speak out when we see something wrong, when we witness our government engaging in serious crimes, abusing power, engaging in massive historic violations of the Constitution of the United States. We have to speak out or we are party to that bad action.
  • The Nation: Considering your personal experience—the risks you took, and now your fate here in Moscow—do you think other young men or women will be inspired or discouraged from doing what you did? Snowden: Chelsea Manning got thirty-five years in prison, while I’m still free. I talk to people in the ACLU office in New York all the time. I’m able to participate in the debate and to campaign for reform. I’m just the first to come forward in the manner that I did and succeed. When governments go too far to punish people for actions that are dissent rather than a real threat to the nation, they risk delegitimizing not just their systems of justice, but the legitimacy of the government itself. Because when they bring political charges against people for acts that were clearly at least intended to work in the public interest, they deny them the opportunity to mount a public-interest defense. The charges they brought against me, for example, explicitly denied my ability to make a public-interest defense. There were no whistleblower protections that would’ve protected me—and that’s known to everybody in the intelligence community. There are no proper channels for making this information available when the system fails comprehensively.
  • The government would assert that individuals who are aware of serious wrongdoing in the intelligence community should bring their concerns to the people most responsible for that wrongdoing, and rely on those people to correct the problems that those people themselves authorized. Going all the way back to Daniel Ellsberg, it is clear that the government is not concerned with damage to national security, because in none of these cases was there damage. At the trial of Chelsea Manning, the government could point to no case of specific damage that had been caused by the massive revelation of classified information. The charges are a reaction to the government’s embarrassment more than genuine concern about these activities, or they would substantiate what harms were done. We’re now more than a year since my NSA revelations, and despite numerous hours of testimony before Congress, despite tons of off-the-record quotes from anonymous officials who have an ax to grind, not a single US official, not a single representative of the United States government, has ever pointed to a single case of individualized harm caused by these revelations. This, despite the fact that former NSA director Keith Alexander said this would cause grave and irrevocable harm to the nation. Some months after he made that statement, the new director of the NSA, Michael Rogers, said that, in fact, he doesn’t see the sky falling. It’s not so serious after all.
  • The Nation: You also remind us of [Manhattan Project physicist] Robert Oppenheimer—what he created and then worried about. Snowden: Someone recently talked about mass surveillance and the NSA revelations as being the atomic moment for computer scientists. The atomic bomb was the moral moment for physicists. Mass surveillance is the same moment for computer scientists, when they realize that the things they produce can be used to harm a tremendous number of people. It is interesting that so many people who become disenchanted, who protest against their own organizations, are people who contributed something to them and then saw how it was misused. When I was working in Japan, I created a system for ensuring that intelligence data was globally recoverable in the event of a disaster. I was not aware of the scope of mass surveillance. I came across some legal questions when I was creating it. My superiors pushed back and were like, “Well, how are we going to deal with this data?” And I was like, “I didn’t even know it existed.” Later, when I found out that we were collecting more information on American communications than we were on Russian communications, for example, I was like, “Holy shit.” Being confronted with the realization that work you intended to benefit people is being used against them has a radicalizing effect.
  • The Nation: We have a sense, or certainly the hope, we’ll be seeing you in America soon—perhaps sometime after this Ukrainian crisis ends. Snowden: I would love to think that, but we’ve gone all the way up the chain at all the levels, and things like that. A political decision has been made not to irritate the intelligence community. The spy agencies are really embarrassed, they’re really sore—the revelations really hurt their mystique. The last ten years, they were getting the Zero Dark Thirty treatment—they’re the heroes. The surveillance revelations bring them back to Big Brother kind of narratives, and they don’t like that at all. The Obama administration almost appears as though it is afraid of the intelligence community. They’re afraid of death by a thousand cuts—you know, leaks and things like that.
  • The Nation: You’ve given us a lot of time, and we are very grateful, as will be The Nation’s and other readers. But before we end, any more thoughts about your future? Snowden: If I had to guess what the future’s going to look like for me—assuming it’s not an orange jumpsuit in a hole—I think I’m going to alternate between tech and policy. I think we need that. I think that’s actually what’s missing from government, for the most part. We’ve got a lot of policy people, but we have no technologists, even though technology is such a big part of our lives. It’s just amazing, because even these big Silicon Valley companies, the masters of the universe or whatever, haven’t engaged with Washington until recently. They’re still playing catch-up. As for my personal politics, some people seem to think I’m some kind of archlibertarian, a hyper-conservative. But when it comes to social policies, I believe women have the right to make their own choices, and inequality is a really important issue. As a technologist, I see the trends, and I see that automation inevitably is going to mean fewer and fewer jobs. And if we do not find a way to provide a basic income for people who have no work, or no meaningful work, we’re going to have social unrest that could get people killed. When we have increasing production—year after year after year—some of that needs to be reinvested in society. It doesn’t need to be consistently concentrated in these venture-capital funds and things like that. I’m not a communist, a socialist or a radical. But these issues have to be 
addressed.
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    Remarkable interview. Snowden finally gets asked some questions about politics. 
Paul Merrell

Anti-Iranism in the Trump Administration « LobeLog - 0 views

  • In explaining the timing of Trump’s declarations, one always has to look at what he is trying to divert attention from, and right now the uproar over the anti-Muslim travel ban is no doubt involved.  But the supposed trigger for these tweets and for an anti-Iran blast that Trump’s national security adviser delivered in the White House press room was an Iranian test of a ballistic missile.  Missiles have long been used by Iran-bashers as a red herring.  Missiles of various ranges are so much integrated into conventional armed forces, and missile proliferation has gone so far in the Middle East, that it does not make sense to single out an Iranian missile test as something that, in the hyperbolic language of security adviser Flynn, are among Iranian actions that “undermine security, prosperity, and stability throughout and beyond the Middle East and place American lives at risk.” If rivals of Iran can’t develop their own missiles, they buy them.  Saudi Arabia has bought them from China.  The United Arab Emirates has bought them from North Korea.  Short of the negotiation of a comprehensive regional missile disarmament pact, Iran will have missiles. Former State Department intelligence officer Greg Thielmann highlights the most important points about this latest attempt to brew a tempest in the Iranian missile teapot.  A prohibition on Iranian missile activity incorporated in a United Nations Security Council resolution that was enacted during Barack Obama’s presidency was intended and used, just like other sanctions, as one more pressure point on Iran to induce it to negotiate restrictions on its nuclear program.  Accordingly, the later Security Council resolution enacted after negotiation of the nuclear agreement included only a hortatory clause “calling” on Iran to lay off the missile tests.  It is at best a stretch to call the latest test a “violation” of this resolution, and it certainly is not a violation of the nuclear agreement or any other agreement that Iran has signed.  As long as the nuclear agreement lives and Iran does not have nuclear weapons, Iranian ballistic missiles are of minor importance, and they do not pose a threat to U.S. interests (and this most recent test, by the way, was a failure). Thielmann summarizes as follows the environment that Iranian defense planners face, and the reasons Iranian missiles are a symptom rather than a cause of conflict and weapons proliferation in the Middle East: “During the eight-year war following Iraq’s invasion, Iran was more the victim of than the source of ballistic missiles raining down death and destruction. In spite of its large missile arsenal, Iran has no long-range ballistic missiles; three of its regional neighbors do. Iran has no nuclear warheads for its missiles; two of its regional neighbors do. Iran does not have a large and modern air force as an alternative means of projecting force as do Saudi Arabia and Israel.”
  • The other bit of allegedly “destabilizing behavior” by Iran on which Flynn focused concerned the civil war in Yemen and most recently an attack by Houthi rebels on a Saudi warship.  Flynn disregarded how whatever aid Iran gives to the Houthis pales in comparison to the direct military intervention by the Saudis and Emiratis, which is responsible for most of the civilian casualties and suffering in this war.  It would be surprising if the Houthis, or any force on the opposite side of this conflict from the Saudis, did not try to go after Saudi forces at sea as well as on land.  Flynn also disregarded how the Houthis are not obedient clients of Iran, how in the past the Houthis have ignored Iranian advice urging restraint in their operations, and how there is no evidence whatever, at least not among what is publicly known, that Iran had anything to do the attack on the Saudi ship, let alone of posing a similar threat to U.S. assets in the area.  Nor was anything said about how the major U.S. terrorist concern in Yemen—Al Qaeda in the Arabian Peninsula—is on the anti-Houthi side in this war.  Nor anything about how former president and longtime U.S. counterterrorist partner Ali Abdullah Salih has been allied with the Houthis. Flynn’s statement represents a taking sides in a local rivalry for no good reason, and in which the United States does not have a critical stake.  One of several harmful consequences of this kind of needless side-taking is to embolden those who side is taken to engage in more destructive behavior without being brought to account.  James Dorsey describes this way the destructive behavior that Riyadh is encouraged to take by the United States siding so unquestioningly with the Saudis in their rivalry with Iran: “A four-decade long, $100 billion global Saudi effort to box in, if not undermine, a post-1979 revolution Iranian system of government that it sees as an existential threat to the autocratic rule of the Al Saud family by funding ultra-conservative political and religious groups has contributed to the rise of supremacism, intolerance and anti-pluralism across the Muslim world and created potential breeding grounds of extremism.”
Paul Merrell

Tomgram: Laura Gottesdiener, Security vs. Securities | TomDispatch - 0 views

  • I live in Washington, D.C.'s Capitol Hill neighborhood. I can more or less roll out of bed into the House of Representatives or the Senate; the majestic Library of Congress doubles as my local branch. (If you visit, spend a sunset on the steps of the library's Jefferson Building. Trust me.) You can't miss my place, three stories of brick painted Big Bird yellow. It's a charming little corner of the city. Each fall, the trees outside my window shake their leaves and carpet the street in gold. Nora Ephron, if she were alive, might've shot a scene for her latest movie in one of the lush green parks that bookend my block. The neighborhood wasn't always so nice. A few years back, during a reporting trip to China, I met an American consultant who had known Capitol Hill in a darker era. "I was driving up the street one time," he told me, "and walking in the opposite direction was this huge guy carrying an assault rifle. Broad daylight, no one even noticed. That's what kind of neighborhood it was." Nowadays, row houses around me sell for $1 million or more. I rent.
  • Washington's a fun place to live if you're young and employed. But as a recent Washington Post story pointed out, the nation's capital is slowly pricing out even its yuppies who, in their late-twenties and early-thirties, want to start families but can't afford it. "I hate to say it, but the facts show that the D.C. market is for people who are single and relatively affluent," a real estate researcher told the Post. The District's housing boom just won't stop; off go those new and expecting parents to the suburbs. And we're talking about the lucky ones. Elsewhere in the country, vulnerability in the housing market isn't a trend story; it's the norm. The Cedillo family, as Laura Gottesdiener writes today, went looking for their version of the American housing dream and thought they found it in Chandler, Arizona. They didn't know that the house they chose to rent rested on a shaky foundation -- not physically but financially. It had been one of thousands snapped up and rented out by massive investment firms making a killing in the wake of the housing collapse. As Gottesdiener -- who has put the new rental empires of private equity firms on the map for TomDispatch -- shows, the goal of such companies is to squeeze every dime of profit from their properties, from homes like the Cedillos', and that can lead to tragedy.
  • Drowning in Profits A Private Equity Firm, a Missing Pool Fence, and the Price of a Child’s Death By Laura Gottesdiener
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  • Security is a slippery idea these days -- especially when it comes to homes and neighborhoods. Perhaps the most controversial development in America’s housing “recovery” is the role played by large private equity firms. In recent years, they have bought up more than 200,000 mostly foreclosed houses nationwide and turned them into rental empires. In the finance and real estate worlds, this development has won praise for helping to raise home values and creating a new financial product known as a “rental-backed security.” Many economists and housing advocates, however, have blasted this new model as a way for Wall Street to capitalize on an economic crisis by essentially pushing families out of their homes, then turning around and renting those houses back to them. Caught in the crosshairs are tens of thousands of families now living in these private equity-owned homes.
  • The same month that the family rented the house at 1471 West Camino Court, Progress Residential purchased more homes in Maricopa Country than any other institutional buyer. Nationally, Blackstone, a private equity giant, has been the leading purchaser of single-family homes, spending upwards of $8 billion between 2012 and 2014 to purchase 43,000 homes in about a dozen cities. However, in May 2013, according to Michael Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business at Arizona State University, Progress Residential bought nearly 200 houses, surpassing Blackstone's buying rate that month in the Phoenix area. The condition and code compliance of these houses varies and is rarely known at the time of the purchase. Mike Anderson, who works for a bidding service contracted by Progress Residential and other private equity giants to buy houses at auctions, was sometimes asked to go out and look at the homes. But with the staggering buying rate -- up to 15 houses a day at the peak -- he couldn’t keep up. “There’d be too many, you couldn’t go out and look at them,” he said. “It’s just a gamble. You never know what you’ve got into.”
  • Global private equity firms have not been, historically, in the business of dealing with pool fences and the other hassles of maintaining single-family houses. But following the housing market collapse, the idea of buying a ton of these foreclosed properties suddenly made sense, at least to investors. Such private-equity purchases were to make money in three ways: buying cheap and waiting for the houses to gain value as the market bounced back; renting them out and collecting monthly rental payments; and promoting a financial product known as “rental-backed securities,” similar to the infamous mortgage-backed securities that triggered the housing meltdown of 2007-2008. Even though the buying of the private equity firms has finally slowed, economists (including those at the Federal Reserve) have expressed concern about the possibility that someday those rental-backed securities could even destabilize -- translation: crash -- the broader market.
  • ince Wall Street was overwhelmingly responsible for the original collapse of the housing market, many have characterized these new purchases as a land grab. In many ways, Progress CEO Donald Mullen is the poster-child for this argument. An investment banker who enjoyed a brief flurry of fame after losing a bidding war to Alec Baldwin at an art auction, he was the leader of a team at Goldman Sachs that orchestrated an infamous bet against the housing market. Known as “the big short,” it allowed that company to make “some serious money“ when the economy melted down, according to Mullen’s own emails. (They were released by the Senate Permanent Subcommittee on Investigations in 2010.) As Kevin Roose of New York magazine has written, “A guy whose most famous trade was a successful bet on the full-scale implosion of the housing market is now swooping in to pick up the pieces on the other end.”
Joe La Fleur

Liberals, Progressives and Socialists - Walter E. Williams - Page 1 - 1 views

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    The Williams article does no more than to sing to the choir and certainly is no scholarly work. First he stuffs the Nazis into his own "socialist" bag, ignoring the fact that the "socialist" label in the party name was only window dressing for what was in reality a mix of fascism and capitalism, not socialism. Then he declares that "communists" in the Soviet Union were responsible for mass murders, blinking past the fact that the Soviet Union was communist in name only. It was a fascist state during the entire period when the mass murders there took place and wound up an oligarchy before it died. "Communist China" likewise was never a communist state. It began as a socialist state ruled by an oligarchy, became near-fascist under Chairman Mao, and returned to being an oligarchy after his death, but this time sprouting capitalist wings. (Nixon removing the U.S. trade barriers with China had a lot to do with this.) Having stuffed everything in sight into his "socialist" bag, deserving or not, and labeling *all* socialists as government mass murders, Williams takes the insurmountable mental leap to paint groups like the "NAACP, the National Council of La Raza, Green for All, the Sierra Club and the Children's Defense Fund" as mass murderers, apparently should their views ever become dominant in the U.S. (Williams provides no connective tissue for his illogic there.) Then to top it all off, the web site's editor slaps a title on the essay lumping liberals and progressives in with the socialists, so apparently liberals and progressives are potential mass murderers too, which is unmistakably his innuendo. Williams seems to have a problem with organizations working *through our legal system* to expand civil liberties and to raise ethnic minorities out of poverty. Love 'em or hate 'em, those are not groups of mass murderers. Williams has the right to dislike those organizations. He also has the right to make absurd arguments, which he has fully exercised. But he wa
Paul Merrell

ClubOrlov: Whiplash! - 0 views

  • Over the course of 2014 the prices the world pays for crude oil have tumbled from over $125 per barrel to around $45 per barrel now, and could easily drop further before heading much higher before collapsing again before spiking again. You get the idea. In the end, the wild whipsawing of the oil market, and the even wilder whipsawing of financial markets, currencies and the rolling bankruptcies of energy companies, then the entities that financed them, then national defaults of the countries that backed these entities, will in due course cause industrial economies to collapse. And without a functioning industrial economy crude oil would be reclassified as toxic waste. But that is still two or three decades off in the future.
  • An additional problem is the very high depletion rate of “fracked” shale oil wells in the US. Currently, the shale oil producers are pumping flat out and setting new production records, but the drilling rate is collapsing fast. Shale oil wells deplete very fast: flow rates go down by half in just a few months, and are negligible after a couple of years. Production can only be maintained through relentless drilling, and that relentless drilling has now stopped. Thus, we have just a few months of glut left. After that, the whole shale oil revolution, which some bobbleheads thought would refashion the US into a new Saudi Arabia, will be over. It won't help that most of the shale oil producers, who speculated wildly on drilling leases, will be going bankrupt, along with exploration and production companies and oil field service companies. The entire economy that popped up in recent years around the shale oil patch in the US, which was responsible for most of the growth in high-paying jobs, will collapse, causing the unemployment rate to spike.
  • The game they are playing is basically a game of chicken. If everybody pumps all the oil they can regardless of the price, then at some point one of two things will happen: shale oil production will collapse, or other producers will run out of money, and their production will collapse. The question is, Which one of these will happen first? The US is betting that the low oil prices will destroy the governments of the three major oil producers that are not under their political and/or military control. These are Venezuela, Iran and, of course, Russia. These are long shots, but, having no other cards to play, the US is desperate. Is Venezuela enough of a prize? Previous attempts at regime change in Venezuela failed; why would this one succeed? Iran has learned to survive in spite of western sanctions, and maintains trade links with China, Russia and quite a few other countries to work around them. In the case of Russia, it is as yet unclear what fruit, if any, western policies against it will bear. For example, if Greece decides to opt out of the European Union in order to get around Russia's retaliatory sanctions against the EU, then it will become entirely unclear who has actually sanctioned whom.
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  • The US is making a desperate attempt to knock over a petro-state or two or three before its shale oil runs out, with the Canadians, their tar sands now unprofitable, hitching a ride on its coat-tails, because if this attempt doesn't work, then it's lights out for the empire. But none of their recent gambits have worked. This is the winter of imperial discontent, and the empire is has been reduced to pulling pathetic little stunts that would be quite funny if they weren't also sinister and sad.
  • But a bunch of deluded people muttering to themselves in a dark corner, while the rest of the world points at them and laughs, does not an empire make. With this level of performance, I would venture to guess that nothing the empire tries from here on will work to its satisfaction.
  • Because it will recover. The fix for low oil prices is... low oil prices. Past some point high-priced producers will naturally stop producing, the excess inventory will get burned up, and the price will recover. Not only will it recover, but it will probably spike, because a country littered with the corpses of bankrupt oil companies is not one that is likely to jump right back into producing lots of oil while, on the other hand, beyond a few uses of fossil fuels that are discretionary, demand is quite inelastic. And an oil price spike will cause another round of demand destruction, because the consumers, devastated by the bankruptcies and the job losses from the collapse of the oil patch, will soon be bankrupted by the higher price. And that will cause the price of oil to collapse again. And so on until the last industrialist dies. His cause of death will be listed as “whiplash”: the “shaken industrialist syndrome,” if you will. Oil prices too high/low in rapid alternation will have caused his neck to snap.
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    Dmitry Orlov with a humorous yet inscisient take on the state and future of the oil market. Spoiler: He sees signs of desperation amongst the leaders of the American Empire, reduced to no viable options. 
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    "inscisient"? Make that "incisive." Follow reading Orlov's piece by reading Mike Whitney's latest at http://www.counterpunch.org/2015/01/20/are-plunging-petrodollar-revenues-behind-the-feds-projected-rate-hikes/ A lot of confirmation of what Orlov said in Whitney's article, citing hard numbers. Mass layoffs in the U.S. and Canadian oil industry; the petrodolar has stopped providing liquidity for the dollar; and the Fed plans to raise interest rates to force an influx of dollars from developing nations, in order to replace the petrodollar liquidity crisis. Whitney makes a strong case that it's a plot by the big banksters to steal another huge pile of cash at the expense of a huge number of jobs in the U.S. Both Orlov and Whitney say that it's going to be a very rough ride for the 99 per cent and for the population of developing nations. Indeed, Whitney's numbers say we are already over the precipice on jobs and well into free-fall.
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    But last night, Obama had the gall to claim that all is just peachy-k een on the jobs front. As he helps the banksters offshore another huge number of U.S. jobs.
Paul Merrell

MH17: World See Tragedy, US Sees "Game Changer" | New Eastern Outlook - 0 views

  • Power asserted that the most likely culprits behind the downing of MH17 were eastern Ukrainian separatists. Because of the high altitude MH17 was travelling at – approximately 33,000 feet – Power conceded that the weapons separatists have been using to down Ukrainian military aircraft would have been inadequate to down MH17. After claiming separatists had “bragged” about downing the airliner based on information from “social media,” she explained that Russia most likely assisted the separatists in operating the sophisticated anti-air missile systems required to reach MH17′s altitude. Power gives no explanation as to why after multiple successful downings of Ukrainian military aircraft with man-portable air defense systems (MANPADS), Russia and the separatists decided to employ larger, more complex weapon systems that would link any incident directly back to Moscow. Power also failed to explain how in one breath she suggests the separatists shot down MH17, then in the next claimed they did not have the ability to do so, and that Russia instead “assisted.”
  • Power appears to be suggesting Russia rolled self-propelled anti-air missile systems into Ukrainian territory and assisted separatists in firing at MH17 specifically – since all other incidents of separatists shooting down aircraft involved man-portable systems incapable of hitting MH17.
  • Strategically, politically, and even tactically, Russia and the separatists gained nothing by employing the larger Buk systems within Ukrainian territory as Power is suggesting. Where the World Sees Tragedy, NATO Sees a “Game Changing” Opportunity  Power’s comments and conclusions were echoes from the halls of the West’s corporate-financier funded policy think-tanks. The Royal United Services Institute (RUSI) in a statement titled, “The Downing of Malaysian Airlines Flight MH17: Russia in the Dock,” provides a self-incriminating indictment as to the motives Kiev and its NATO backers had in carrying out the attack on MH17 and subsequently framing Russia for it. RUSI’s statement claims: A Game Change: Within days, however, the real debate will shift from one about producing the right evidence and culprits, to more about what can be saved from the rapidly-deteriorating relations between Russia and the West.
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  • The tragedy will stain Russia’s relations with the world for years to come. Nations determined to keep on good terms with Russia – such as China or Vietnam which relies on Russian weapon supplies and wishes these to continue – will keep quiet. And there will always be some plausible deniability, giving other countries enough room for manoeuvre to avoid accusing Russia directly for this disaster. But the culprits for the crime will be pursued by international investigators and tribunals. And many Russian officials will be added to the ‘wanted’ lists of police forces around the world. The story will linger, and won’t be pretty for Russian diplomats. Given the fact that the majority of the victims are European citizens, it is also getting increasingly difficult to see how France would be able to deliver the Mistral ships which Russia ordered for its navy, or how Britain could continue shielding Russia from financial sanctions. And, given the fact that scores of US citizens were also killed on the MH17 flight means that the US Congress will demand greater sanctions on Russia, making any improvement in relations with Washington highly unlikely.
  • USI explains in great detail the possible motivation Kiev and NATO had to shoot down MH17 and subsequently frame Russia. An international flight, with passengers from across the globe would invoke unifying outrage against Russia as well as universal support for NATO’s so far unsuccessful attempts to isolate Moscow. RUSI itself admits that individual members of the EU have until now, been reluctant to back sanctions and further confrontation with Moscow.
  • NATO needed a “game changer,” because it was playing a game it was clearly losing. The dubious circumstances surrounding the downing of MH17 – occurring just as Kiev’s forces were deteriorating across the country and additional US sanctions against Russia fell flat –  is more than a mere coincidence. RUSI and the Atlantic Council’s statement represent an increasingly desperate and shrinking corner the West finds itself in. With the ascension of Russia along with other BRICS nations, a “game changer” was desperately needed to “stain Russia’s relations with the world for years to come,” and help arrest what appeared to be the irreversible rise of the global East and South, in tandem with the irreversible decline of the West. If the West was so sure of who was responsible for the downing of MH17, it would patiently allow the facts to reveal themselves, giving them unassailable credibility as they begin an effective campaign to contain, isolate, and dismantle Russia’s global influence. However, just like in Damascus, Syria in August 2013 when NATO gassed thousands of Syrians in what is now confirmed to be a false flag attack, the West is racing against the clock to do maximum damage before the truth of MH17 emerges.
  • The very expediency the West pursues its smear campaign against Russia with raises suspicion. The world has been at critical junctures like this before, with Western politicians and media personalities making well-scripted, passionate pleas – but based on little to no “evidence.” Weathering the psychological inertia the West is seeking to stampede its political assault on Russia through with, will cause the West’s attempts to reverse its fortunes in Ukraine to fail. Failing in Ukraine will weaken the West’s position in Syria and Iraq, further undermine its “pivot” in Asia, and diminish its ability to visit upon humanity yet another horrific staged event it may finally realize will only further compromise its place among a new emerging, multipolar global order – not help it restore its antiquated “unipolar” empire.
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