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Paul Merrell

CFPB Determined to Regulate Billion Dollar Payday Loan Industry - Top US & World News |... - 0 views

  • The Consumer Financial Protection Bureau (CFPB) has a new set of rules aimed at preventing payday loan operations from targeting low-income borrowers who will be buried by high fees and rising debt loads. Payday loans are traditionally a loan of $500 or less wherein the borrower “provides a personal check dated on their next payday for the full balance or give the lender permission to debit their bank accounts. The total includes charges often ranging from $15 to $30 per $100 borrowed. Interest-only payments, sometimes referred to as rollovers, are common.” Using these lenders to make ends meet, borrowers are taken advantage of which has traditionally been a state regulatory issue. However now the federal government will be stepping in to curb this extortive multibillion dollar industry. Fees from payday loans can quickly accumulate, causing some borrowers to “lose their bank accounts and cars, or even risk prison time”.
  • Richard Corday, director of the CFPB, said: “Extending credit to people in a way that sets them up to fail and ensnares considerable numbers of them in extended debt traps, is simply not responsible lending.” These new rules cover payday loans, vehicle loans, loans using a car as collateral and various other forms of high-cost lending. Enders will be responsible for making sure debtors can repay the loan in full on time before extending the loan by checking their income, borrowing history, previous financial obligations and any other indicators that the borrower would most likely default or roll over the loan. • A 60 day respite between loans • Lenders must provide affordable repayment options • Loans cannot exceed $500 • Loans cannot have multiple finance charges • Loans cannot use a vehicle as collateral Regulations on interest rates and repayments as a share of income include mandatory capping off to prevent run-a-way fees.
  • Back in February, the CFPB warned about the payday loan industry which is largely unregulated and functions outside of proper oversight and accountability. The CFPB estimates that the $46 billion payday loan or cash advance industry has no oversight, refuses to give full disclosures of interest and fees involved, and takes an annual percentage of an excess of 300% against borrowers. The Consumer Federation of America (CFA) counts 32 states in the US that “permit payday loans at triple-digit interest rates, or with no rate cap at all.” Shockingly 80% of payday loans are rolled over within 14 days while an estimated 50% of these loans are “in a sequence at least 10 loans long.”
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    The first sentence if false; no rules have been adopted or even been published. In fact, these aren't even formal rule proposals or advance notice of public rulemaking, all of which must be poublished in the Federal Register, per the Administrative Procedures Act.   The Bureau is still in the information gathering stage.
Paul Merrell

JFK Assassination Plot Mirrored in France: Part 2 - WhoWhatWhy - 0 views

  • What the colonial powers have done in Muslim countries is well known. Less well known are the machinations of Allen Dulles and the CIA in one of these colonial powers, France.Without the knowledge or consent of President John F. Kennedy, Allen Dulles orchestrated the efforts of retired French generals, rightwing French, Nazi sympathizers, and at least one White Russian, to overthrow Charles de Gaulle, who wanted to give Algeria its independence. Dulles et al feared an independent Algeria would go Communist, giving the Soviets a base in Africa.And there was another reason to hang onto Algeria: its natural resources. According to the US Energy Information Administration, it is “the leading natural gas producer in Africa, the second-largest natural gas supplier to Europe outside of the region, and is among the top three oil producers in Africa.”We note with great interest that the plot to bring down Charles De Gaulle — the kind of people involved, the role of Allen Dulles, the motive behind it — all bear an eerie similarity to the circumstances surrounding the assassination of John F. Kennedy. But that is another story.
  • As we have said earlier, Dulles’s job, simply put, was to hijack the US government to benefit the wealthy. And in this fascinating series of excerpts from David Talbot’s new biography on Dulles, we see how his reach extended deeply into the government of France.WhoWhatWhy Introduction by Milicent CranorThis is the second of a three-part series of excerpts from Chapter 15 (“Contempt”) of The Devil’s Chessboard: Allen Dulles, the CIA, and the Rise of the American Secret Government. HarperCollins Publishers, 2015. Go here to see Part 1. Previously, we presented excerpts from Chapter 20, and to see them, go here, here, and here.
  • When the coup against de Gaulle began three months later, Kennedy was still in the dark. It was a tumultuous time for the young administration. As he continued to wrestle with fallout from the Bay of Pigs crisis, JFK was suddenly besieged with howls of outrage from a major ally, accusing his own security services of seditious activity.
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  • It was a stinging embarrassment for the new American president, who was scheduled to fly to Paris for a state visit the following month. To add to the insult, the coup had been triggered by de Gaulle’s efforts to bring French colonial rule in Algeria to an end — a goal that JFK himself had ardently championed.The CIA’s support for the coup was one more defiant display of contempt — a back of the hand aimed not only at de Gaulle but at Kennedy.JFK took pains to assure Paris that he strongly supported de Gaulle’s presidency, phoning Hervé Alphand, the French ambassador in Washington, to directly communicate these assurances. But, according to Alphand, Kennedy’s disavowal of official US involvement in the coup came with a disturbing addendum — the American president could not vouch for his own intelligence agency. Kennedy told Alphand that “the CIA is such a vast and poorly controlled machine that the most unlikely maneuvers might be true.”
  • But at eight o’clock that evening, a defiant de Gaulle went on the air, as nearly all of France gathered around the TV, and rallied his nation with the most inspiring address of his long public career. He looked exhausted, with dark circles under his eyes. But he had put on his soldier’s uniform for the occasion, and his voice was full of passion.De Gaulle began by denouncing the rebellious generals. The nation had been betrayed “by men whose duty, honor and raison d’être it was to serve and to obey.” Now it was the duty of every French citizen to protect the nation from these military traitors. “In the name of France,” de Gaulle shouted, thumping the table in front of him, “I order that all means — I repeat all means — be employed to block the road everywhere to those men!”De Gaulle’s final words were a battle cry. “Françaises, Français! Aidez moi!” And all over France, millions of people did rush to the aid of their nation. The following day, a general strike was organized to protest the putsch. Led primarily by the left, including labor unions and the Communist Party, the mass protest won broad political support.Over ten million people joined the nationwide demonstrations, with hundreds of thousands marching in the streets of Paris, carrying banners proclaiming “Peace in Algeria” and shouting, “Fascism will not pass!” Even police officers associations expressed “complete solidarity” with the protests, as did the Roman Catholic Confederation, which denounced the “criminal acts” of the coup leaders, warning that they “threaten to plunge the country into civil war.”
  • In the wake of the crises in Cuba and France provoked by his own security officials, Kennedy began to display a new boldness. JFK’s assertiveness surprised CIA officials, who had apparently counted on Kennedy to be sidelined during the French coup.Agency officials assured coup leaders that the president would be too “absorbed in the Cuban affair” to act decisively against the plot. But JFK did react quickly to the French crisis, putting on high alert Ambassador Gavin, a decorated paratrooper commander in World War II who could be counted on to keep NATO forces in line. The president also dispatched his French speaking press spokesman, Pierre Salinger, to Paris to communicate directly with Élysée Palace officials.As Paris officials knew, the new American president already had something of a prickly relationship with de Gaulle, but he had strong feelings for France — and they made sure to absolve JFK of personal responsibility for the coup in their leaks to the press. French press accounts referred to the CIA as a “reactionary state within a state” that operated outside of Kennedy’s control.
  • But it was de Gaulle himself, and the French people, who turned the tide against the coup. By Sunday, the second day of the coup, a dark foreboding had settled over Paris. “I am surprised that you are still alive,” the president of France’s National Assembly bluntly told de Gaulle that morning. “If I were Challe, I would have already swooped down on Paris; the army here will move out of the way rather than shoot…. If I were in the position Challe put himself in, as soon as I burst in, I would have you executed with a bullet in the back, here in the stairwell, and say you were trying to flee.” De Gaulle himself realized that if Challe did airlift his troops from Algiers to France, “there was not much to stop them.”
  • This admission of presidential impotence, which Alphand reported to Paris, was a startling moment in US foreign relations, though it remains largely unknown today. Kennedy then underlined how deeply estranged he was from his own security machinery by taking the extraordinary step of asking Alphand for the French government’s help to track down the US officials behind the coup, promising to fully punish them.“[Kennedy] would be quite ready to take all necessary measures in the interest of good Franco-American relations, whatever the rank or functions of [the] incriminated people,” Alphand cabled French foreign minister Maurice Couve de Murville.
  • Hundreds of people rushed to the nation’s airfields and prepared to block the runways with their vehicles if Challe’s planes tried to land. Others gathered outside government ministries in Paris to guard them against attack. André Malraux, the great novelist turned minister of culture, threaded his way through one such crowd, handing out helmets and uniforms. Meanwhile, at the huge Renault factory on the outskirts of Paris, workers took control of the sprawling complex and formed militias, demanding weapons from the government so that they could fend off rebel assaults.“In many ways, France, and particularly Paris, relived its great revolutionary past Sunday night and Monday — the past of the revolutionary barricades, of vigilance committees and of workers’ councils,” reported The New York Times.
  • De Gaulle’s ringing address to the nation and the massive public response had a sobering effect on the French military. Challe’s support quickly began melting away, even — humiliatingly — within the ranks of his own military branch, the air force. Pilots flew their planes out of Algeria, and others feigned mechanical troubles, depriving Challe’s troops of the air transport they needed to descend on Paris.Meanwhile, de Gaulle moved quickly to arrest military officers in France who were involved in the coup. Police swooped down on the Paris apartment of an army captain who was plotting pro-putsch street riots, and de Gaulle’s minister of the interior seized the general in charge of the rebel forces that were gathered in the forests outside Paris. Deprived of their leader, the insurrectionary units sheepishly began to disperse.By Tuesday night, Challe knew that the coup had failed. The next day, he surrendered and was flown to Paris. Challe emerged from the plane “carrying his own suitcase, looking crumpled and insignificant in civilian clothes,” according to Time. “He stumbled at the foot of the landing steps, [falling] heavily on his hands and knees.” It was an ignominious homecoming for the man who had fully believed that, with US support, he was to replace the great de Gaulle.
Paul Merrell

Tomgram: Nick Turse, A Secret War in 135 Countries | TomDispatch - 0 views

  • You can find them in dusty, sunbaked badlands, moist tropical forests, and the salty spray of third-world littorals. Standing in judgement, buffeted by the rotor wash of a helicopter or sweltering beneath the relentless desert sun, they instruct, yell, and cajole as skinnier men playact under their watchful eyes. In many places, more than their particular brand of camouflage, better boots, and designer gear sets them apart. Their days are scented by stale sweat and gunpowder; their nights are spent in rustic locales or third-world bars. These men -- and they are mostly men -- belong to an exclusive military fraternity that traces its heritage back to the birth of the nation. Typically, they’ve spent the better part of a decade as more conventional soldiers, sailors, marines, or airmen before making the cut. They’ve probably been deployed overseas four to 10 times. The officers are generally approaching their mid-thirties; the enlisted men, their late twenties. They’ve had more schooling than most in the military. They’re likely to be married with a couple of kids. And day after day, they carry out shadowy missions over much of the planet: sometimes covert raids, more often hush-hush training exercises from Chad to Uganda, Bahrain to Saudi Arabia, Albania to Romania, Bangladesh to Sri Lanka, Belize to Uruguay. They belong to the Special Operations forces (SOF), America’s most elite troops -- Army Green Berets and Navy SEALs, among others -- and odds are, if you throw a dart at a world map or stop a spinning globe with your index finger and don’t hit water, they’ve been there sometime in 2015.
  • This year, U.S. Special Operations forces have already deployed to 135 nations, according to Ken McGraw, a spokesman for Special Operations Command (SOCOM).  That’s roughly 70% of the countries on the planet.  Every day, in fact, America’s most elite troops are carrying out missions in 80 to 90 nations, practicing night raids or sometimes conducting them for real, engaging in sniper training or sometimes actually gunning down enemies from afar. As part of a global engagement strategy of endless hush-hush operations conducted on every continent but Antarctica, they have now eclipsed the number and range of special ops missions undertaken at the height of the conflicts in Iraq and Afghanistan.   In the waning days of the Bush administration, Special Operations forces (SOF) were reportedly deployed in only about 60 nations around the world.  By 2010, according to the Washington Post, that number had swelled to 75.  Three years later, it had jumped to 134 nations, “slipping” to 133 last year, before reaching a new record of 135 this summer.  This 80% increase over the last five years is indicative of SOCOM’s exponential expansion which first shifted into high gear following the 9/11 attacks.
  • Special Operations Command’s funding, for example, has more than tripled from about $3 billion in 2001 to nearly $10 billion in 2014 “constant dollars,” according to the Government Accountability Office (GAO).  And this doesn’t include funding from the various service branches, which SOCOM estimates at around another $8 billion annually, or other undisclosed sums that the GAO was unable to track.  The average number of Special Operations forces deployed overseas has nearly tripled during these same years, while SOCOM more than doubled its personnel from about 33,000 in 2001 to nearly 70,000 now.
Paul Merrell

Israel's "Qualitative Military Edge": Blank Checks, No Balance? « LobeLog.com - 0 views

  • Two years ago, Congress passed the United States-Israel Enhanced Security Cooperation Act (P.L. 112-150), which reiterated, as a matter of policy, the US commitment “to help the Government of Israel preserve its qualitative military edge amid rapid and uncertain regional political transformation.” It expressed the non-binding “sense of Congress” favoring various possible avenues of cooperation: providing Excess Defense Articles to Israel; enhanced operational, intelligence, and political-military coordination; expediting the sale of specific weaponry including F-35 joint strike fighter aircraft, refueling tankers, and “bunker buster” bombs; as well as an US-Israel cooperative missile defense program and additional aid for Israel’s Iron Dome anti-rocket system.
  • Iron Dome, a dual mission system built by Israeli defense contractor Rafael Advanced Defense Systems, which doubles as a very short range air defense system and an interceptor of incoming rockets, mortars and artillery, has received $720 million in American funding since the program’s inception in 2011. Israel currently has nine batteries, each costing about $100 million. The price tag for every Tamir missile fired by the Iron Dome system costs an estimated minimum of $50,000, with two missiles responding to every incoming rocket that is considered a threat to Israeli lives and property. US support for Iron Dome will soon surpass $1 billion. In March, the Pentagon asked for $176 million for the program for Fiscal Year 2015, which begins Oct. 1, but the Senate Appropriations defense subcommittee raised the Iron Dome appropriation to $351 million on July 15—more than half the $621.6 million it had appropriated for Israeli missile defense for the upcoming year. A week later, Defense Secretary Chuck Hagel sent a letter to Senate leaders and key committee chairpersons relaying the Israeli government’s request for an immediate $285 million of emergency allocation for Iron Dome. On Aug. 1—a Friday afternoon—the House (398-8) and Senate both approved adding an additional $285 million to Iron Dome’s funding, which was followed by President Obama’s signature the following Monday morning.
  • After Israel’s bombing of the UN school in Gaza, and more than 2,000 civilian Palestinian deaths since the war began on July 8, the Obama administration apparently became aware that it was uninformed about, and had very little control over US military assistance to Israel. Indeed, the Wall Street Journal reported Aug. 14 that President Obama had just discovered that the US military was authorizing and providing weapons shipments to Israel without his knowledge. Unknown to many policy makers, Israel was moving on a separate track to replenish supplies of lethal munitions being used in Gaza and to expedite the approval of the Iron Dome funds on Capitol Hill. On July 20, Israel’s defense ministry asked the US military for a range of munitions, including 120-mm mortar shells and 40-mm illuminating rounds, which were already stored at a pre-positioned weapons stockpile in Israel.
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  • The request was approved through military channels three days later but not made public. Under the terms of the deal, the Israelis used US financing to pay for $3 million in tank rounds. No presidential approval or signoff by the secretary of state was required or sought, according to officials.
  • One senior US official said the decision to tighten oversight and require the pre-approval of higher-ranking officials for shipments was intended to make clear to Israel that there is no “blank check” from Washington in regards to the US-made weapons that the Israel Defense Forces (IDF) uses in Gaza.
Paul Merrell

Stories on Cubans in Syria Lack One Thing: Evidence of Cubans in Syria « LobeLog - 0 views

  • Fox News (10/14/15) reported last week that Cuba has sent Gen. Leopoldo Cintra Frias and hundreds of troops to Syria to assist the Russian and Assad governments in “operating Russian tanks.” This explosive claim was soon echoed by James Bloodworth in the Daily Beast (10/16/15) and subsequently spread widely on social media. A Cuban troop presence in Syria would be a blockbuster story indeed—undermining the easing of tensions between Cuba and the United States while serving as a huge embarrassment for the Obama administration, which has spent much political capital restoring relations with the socialist island nation. There’s only one problem: The story is looking increasingly bunk.
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    Looks like that report of Cuban troops in Syria fighting with the Assad government forces was false.
Paul Merrell

Justin Raimondo: A Covert Affair: Petraeus Caught in the Honeypot? - 0 views

  • So who would have an interest in getting rid of Petraeus? Here’s where the Cantor connection comes in. The tip by an anonymous “FBI employee” that wound up in Cantor’s office two weeks ago came through Rep. David Reichert, Republican of Washington state, who has a friend who knows the whistleblower. Cantor then spoke to the whistleblower directly, who put him in touch with FBI Director Mueller. Cantor is a great friend of Israel, and Petraeus — not so much. The General was attacked, as you’ll recall, by partisans of the Lobby, including Abe Foxman, when he delivered testimony before Congress citing Israel as a strategic liability in the Middle East. As the executor of the new Obamaite policy of sidling up to Islamists, not only in Libya but also in Syria and Egypt, Petraeus was no doubt seen by the Israelis as an enemy to be neutralized.
  • Broadwell’s affiliation with the Jebsen Center, and the Center’s connection to the neoconservative network, sets the scene: a young, attractive woman with impeccable national security credentials throws herself at Petraeus, and he takes the bait. Whether she’s been recruited by a foreign intelligence agency at this point or not is irrelevant: he’s already put himself in a vulnerable position, and there are any number of actors on the international stage more than willing to press their advantage. Will we ever know the full story? At this point, the story is so hot that it may burn the cover story — “it’s all about sex” — right off the wrapper. Because there’s more — a lot more — here than meets the eye. When Cantor pledged to Israeli Prime Minister Benjamin Netanyahu that he and his fellow Republicans “will serve as a check on the administration” in regard to the President’s policy toward Israel, he was clearly aligning himself with a foreign leader against American interests as perceived by the White House. But would he really go this far — deliberately taking down a key figure, one beloved by Republicans, in order to keep his promise to Netanyahu?
  • Update: This morning [11/12/12] the New York Times reports: “F.B.I. agents interviewed Ms. Broadwell for the first time the week of Oct. 21, and she acknowledged the affair, a government official briefed on the matter said. She also voluntarily gave the agency her computer. In a search, the agents discovered several classified documents, which raised the additional question of whether Mr. Petraeus had given them to her. She said that he had not. Agents interviewed Mr. Petraeus the following week. He also admitted to the affair but said he had not given any classified documents to her. The agents then interviewed Ms. Broadwell again on Friday, Nov. 2, the official said.”
Paul Merrell

It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors - 0 views

  • Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.  
  • Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.”  The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.
  • The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.”  It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state: An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock]. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.
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  • No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums paid by private banks.
  • If our IOUs are converted to bank stock, they will no longer be subject to insurance protection but will be “at risk” and vulnerable to being wiped out, just as the Lehman Brothers shareholders were in 2008.  That this dire scenario could actually materialize was underscored by Yves Smith in a March 19th post titled When You Weren’t Looking, Democrat Bank Stooges Launch Bills to Permit Bailouts, Deregulate Derivatives.  She writes: In the US, depositors have actually been put in a worse position than Cyprus deposit-holders, at least if they are at the big banks that play in the derivatives casino. The regulators have turned a blind eye as banks use their depositaries to fund derivatives exposures. And as bad as that is, the depositors, unlike their Cypriot confreres, aren’t even senior creditors. Remember Lehman? When the investment bank failed, unsecured creditors (and remember, depositors are unsecured creditors) got eight cents on the dollar. One big reason was that derivatives counterparties require collateral for any exposures, meaning they are secured creditors. The 2005 bankruptcy reforms made derivatives counterparties senior to unsecured lenders.
  • One might wonder why the posting of collateral by a derivative counterparty, at some percentage of full exposure, makes the creditor “secured,” while the depositor who puts up 100 cents on the dollar is “unsecured.” But moving on – Smith writes: Lehman had only two itty bitty banking subsidiaries, and to my knowledge, was not gathering retail deposits. But as readers may recall, Bank of America moved most of its derivatives from its Merrill Lynch operation [to] its depositary in late 2011. Its “depositary” is the arm of the bank that takes deposits; and at B of A, that means lots and lots of deposits. The deposits are now subject to being wiped out by a major derivatives loss. How bad could that be? Smith quotes Bloomberg:
  • . . . Bank of America’s holding company . . . held almost $75 trillion of derivatives at the end of June . . . . That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show. $75 trillion and $79 trillion in derivatives! These two mega-banks alone hold more in notional derivatives each than the entire global GDP (at $70 trillion).
  • Are you safe, then, if your money is in gold and silver? Apparently not – if it’s stored in a safety deposit box in the bank.  Homeland Security has reportedly told banks that it has authority to seize the contents of safety deposit boxes without a warrant when it’s a matter of “national security,” which a major bank crisis no doubt will be.
  • Another alternative was considered but rejected by President Obama in 2009: nationalize mega-banks that fail. In a February 2009 article titled “Are Uninsured Bank Depositors in Danger?“, Felix Salmon discussed a newsletter by Asia-based investment strategist Christopher Wood, in which Wood wrote: It is . . . amazing that Obama does not understand the political appeal of the nationalization option. . . . [D]espite this latest setback nationalization of the banks is coming sooner or later because the realities of the situation will demand it. The result will be shareholders wiped out and bondholders forced to take debt-for-equity swaps, if not hopefully depositors.
  • President Obama acknowledged that bank nationalization had worked in Sweden, and that the course pursued by the US Fed had not worked in Japan, which wound up instead in a “lost decade.”  But Obama opted for the Japanese approach because, according to Ed Harrison, “Americans will not tolerate nationalization.” But that was four years ago. When Americans realize that the alternative is to have their ready cash transformed into “bank stock” of questionable marketability, moving failed mega-banks into the public sector may start to have more appeal.
Paul Merrell

Shady Companies With Ties to Israel Wiretap the U.S. for the NSA | Threat Level | Wired... - 0 views

  • In addition to constructing the Stellar Wind center, and then running the operation, secretive contractors with questionable histories and little oversight were also used to do the actual bugging of the entire U.S. telecommunications network. According to a former Verizon employee briefed on the program, Verint, owned by Comverse Technology, taps the communication lines at Verizon, which I first reported in my book The Shadow Factory in 2008. Verint did not return a call seeking comment, while Verizon said it does not comment on such matters. At AT&T the wiretapping rooms are powered by software and hardware from Narus, now owned by Boeing, a discovery made by AT&T whistleblower Mark Klein in 2004. Narus did not return a call seeking comment. What is especially troubling is that both companies have had extensive ties to Israel, as well as links to that country’s intelligence service, a country with a long and aggressive history of spying on the U.S.
  • In fact, according to Binney, the advanced analytical and data mining software the NSA had developed for both its worldwide and international eavesdropping operations was secretly passed to Israel by a mid-level employee, apparently with close connections to the country. The employee, a technical director in the Operations Directorate, “who was a very strong supporter of Israel,” said Binney, “gave, unbeknownst to us, he gave the software that we had, doing these fast rates, to the Israelis.” Because of his position, it was something Binney should have been alerted to, but wasn’t. “In addition to being the technical director,” he said, “I was the chair of the TAP, it’s the Technical Advisory Panel, the foreign relations council. We’re supposed to know what all these foreign countries, technically what they’re doing…. They didn’t do this that way, it was under the table.” After discovering the secret transfer of the technology, Binney argued that the agency simply pass it to them officially, and in that way get something in return, such as access to communications terminals. “So we gave it to them for switches,” he said. “For access.”
  • But Binney now suspects that Israeli intelligence in turn passed the technology on to Israeli companies who operate in countries around the world, including the U.S. In return, the companies could act as extensions of Israeli intelligence and pass critical military, economic and diplomatic information back to them. “And then five years later, four or five years later, you see a Narus device,” he said. “I think there’s a connection there, we don’t know for sure.” Narus was formed in Israel in November 1997 by six Israelis with much of its money coming from Walden Israel, an Israeli venture capital company. Its founder and former chairman, Ori Cohen, once told Israel’s Fortune Magazine that his partners have done technology work for Israeli intelligence. And among the five founders was Stanislav Khirman, a husky, bearded Russian who had previously worked for Elta Systems, Inc. A division of Israel Aerospace Industries, Ltd., Elta specializes in developing advanced eavesdropping systems for Israeli defense and intelligence organizations. At Narus, Khirman became the chief technology officer.
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  • A few years ago, Narus boasted that it is “known for its ability to capture and collect data from the largest networks around the world.” The company says its equipment is capable of “providing unparalleled monitoring and intercept capabilities to service providers and government organizations around the world” and that “Anything that comes through [an Internet protocol network], we can record. We can reconstruct all of their e-mails, along with attachments, see what Web pages they clicked on, we can reconstruct their [Voice over Internet Protocol] calls.” Like Narus, Verint was founded by in Israel by Israelis, including Jacob “Kobi” Alexander, a former Israeli intelligence officer. Some 800 employees work for Verint, including 350 who are based in Israel, primarily working in research and development and operations, according to the Jerusalem Post. Among its products is STAR-GATE, which according to the company’s sales literature, lets “service providers … access communications on virtually any type of network, retain communication data for as long as required, and query and deliver content and data …” and was “[d]esigned to manage vast numbers of targets, concurrent sessions, call data records, and communications.”
  • In a rare and candid admission to Forbes, Retired Brig. Gen. Hanan Gefen, a former commander of the highly secret Unit 8200, Israel’s NSA, noted his former organization’s influence on Comverse, which owns Verint, as well as other Israeli companies that dominate the U.S. eavesdropping and surveillance market. “Take NICE, Comverse and Check Point for example, three of the largest high-tech companies, which were all directly influenced by 8200 technology,” said Gefen. “Check Point was founded by Unit alumni. Comverse’s main product, the Logger, is based on the Unit’s technology.”
  • According to a former chief of Unit 8200, both the veterans of the group and much of the high-tech intelligence equipment they developed are now employed in high-tech firms around the world. “Cautious estimates indicate that in the past few years,” he told a reporter for the Israeli newspaper Ha’artez in 2000, “Unit 8200 veterans have set up some 30 to 40 high-tech companies, including 5 to 10 that were floated on Wall Street.” Referred to only as “Brigadier General B,” he added, “This correlation between serving in the intelligence Unit 8200 and starting successful high-tech companies is not coincidental: Many of the technologies in use around the world and developed in Israel were originally military technologies and were developed and improved by Unit veterans.
  • Equally troubling is the issue of corruption. Kobi Alexander, the founder and former chairman of Verint, is now a fugitive, wanted by the FBI on nearly three dozen charges of fraud, theft, lying, bribery, money laundering and other crimes. And two of his top associates at Comverse, Chief Financial Officer David Kreinberg and former General Counsel William F. Sorin, were also indicted in the scheme and later pleaded guilty, with both serving time in prison and paying millions of dollars in fines and penalties. When asked about these contractors, the NSA declined to “verify the allegations made.”
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    So, allegedly a Zionist working in NSA passed NSA's telecommunications data mining software to Israel, was identified, but was never prosecuted. And the Verint CEO is now a fugitive from justice on charges of "fraud, theft, lying, money laundering, and other crimes." What's not to like in having this company processing all of our telephone metadata?
Paul Merrell

It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors | WEB OF D... - 0 views

  • Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.  
  • Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.”  The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.
  • No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums paid by private banks.  The directive is called a “resolution process,” defined elsewhere as a plan that “would be triggered in the event of the failure of an insurer . . . .”
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  • The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.”  It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state: An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock]. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.
  • If our IOUs are converted to bank stock, they will no longer be subject to insurance protection but will be “at risk” and vulnerable to being wiped out, just as the Lehman Brothers shareholders were in 2008.  That this dire scenario could actually materialize was underscored by Yves Smith in a March 19th post titled When You Weren’t Looking, Democrat Bank Stooges Launch Bills to Permit Bailouts, Deregulate Derivatives.  She writes: In the US, depositors have actually been put in a worse position than Cyprus deposit-holders, at least if they are at the big banks that play in the derivatives casino. The regulators have turned a blind eye as banks use their depositaries to fund derivatives exposures. And as bad as that is, the depositors, unlike their Cypriot confreres, aren’t even senior creditors. Remember Lehman? When the investment bank failed, unsecured creditors (and remember, depositors are unsecured creditors) got eight cents on the dollar. One big reason was that derivatives counterparties require collateral for any exposures, meaning they are secured creditors. The 2005 bankruptcy reforms made derivatives counterparties senior to unsecured lenders.
  • Smith writes: Lehman had only two itty bitty banking subsidiaries, and to my knowledge, was not gathering retail deposits. But as readers may recall, Bank of America moved most of its derivatives from its Merrill Lynch operation [to] its depositary in late 2011. Its “depositary” is the arm of the bank that takes deposits; and at B of A, that means lots and lots of deposits. The deposits are now subject to being wiped out by a major derivatives loss. How bad could that be? Smith quotes Bloomberg: . . . Bank of America’s holding company . . . held almost $75 trillion of derivatives at the end of June . . . . That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show.
  • $75 trillion and $79 trillion in derivatives! These two mega-banks alone hold more in notional derivatives each than the entire global GDP (at $70 trillion).
  • Smith goes on: . . . Remember the effect of the 2005 bankruptcy law revisions: derivatives counterparties are first in line, they get to grab assets first and leave everyone else to scramble for crumbs. . . . Lehman failed over a weekend after JP Morgan grabbed collateral. But it’s even worse than that. During the savings & loan crisis, the FDIC did not have enough in deposit insurance receipts to pay for the Resolution Trust Corporation wind-down vehicle. It had to get more funding from Congress. This move paves the way for another TARP-style shakedown of taxpayers, this time to save depositors. Perhaps, but Congress has already been burned and is liable to balk a second time. Section 716 of the Dodd-Frank Act specifically prohibits public support for speculative derivatives activities.
  • An FDIC confiscation of deposits to recapitalize the banks is far different from a simple tax on taxpayers to pay government expenses. The government’s debt is at least arguably the people’s debt, since the government is there to provide services for the people. But when the banks get into trouble with their derivative schemes, they are not serving depositors, who are not getting a cut of the profits. Taking depositor funds is simply theft. What should be done is to raise FDIC insurance premiums and make the banks pay to keep their depositors whole, but premiums are already high; and the FDIC, like other government regulatory agencies, is subject to regulatory capture.  Deposit insurance has failed, and so has the private banking system that has depended on it for the trust that makes banking work.
  • The Cyprus haircut on depositors was called a “wealth tax” and was written off by commentators as “deserved,” because much of the money in Cypriot accounts belongs to foreign oligarchs, tax dodgers and money launderers. But if that template is applied in the US, it will be a tax on the poor and middle class. Wealthy Americans don’t keep most of their money in bank accounts.  They keep it in the stock market, in real estate, in over-the-counter derivatives, in gold and silver, and so forth. Are you safe, then, if your money is in gold and silver? Apparently not – if it’s stored in a safety deposit box in the bank.  Homeland Security has reportedly told banks that it has authority to seize the contents of safety deposit boxes without a warrant when it’s a matter of “national security,” which a major bank crisis no doubt will be.
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    Time to get your money out of the bank and into gold or silver, kept somewhere other than in a bank safety deposit box. 
Paul Merrell

M of A - ISIS Moves To Syria Where Erdogan Still Aims For Aleppo - 0 views

  • The Iraqi army started a large operation to liberate Mosul from Islamic State jihadists. But the forces, in total some 40,000, are still several dozen kilometers away from the city limits. They will have to capture several towns and villages and pass many IED obstacles before coming near to the center and house to house fighting. It might take many month to eliminated the last stay-behind ISIS cells in Mosul. About one million civilians live in Mosul. Many, many more than in east-Aleppo. Many of them were sympathetic with the new overlords when ISIS stormed in two years ago. French, American, Kurdish, Iraqi and Turkish artillery are pounding them now. Airstrikes attack even the smallest fighting position. When the city will be conquered it will likely be destroyed. The imminent fight over Mosul might be the reason why John Kerry dialed down his hypocritical howling over east-Aleppo in Syria which is under attack from Syrian and Russian forces. The attack on Mosul proceeds on three axes. From the north Kurdish Peshmerga under U.S. special force advisors lead the fighting. Iraqi forces attack from the east and south. The way to the west, towards Syria, is open. The intend of the U.S. is to let ISIS fighters, several thousand of them, flee to Deir Ezzor and Raqqa in Syria. They are needed there to further destroy the Syrian state.
  • We pointed out here that this move will create the "Salafist principality" the U.S. and its allies have striven to install in east-Syria since 2012. The "mistake" of the U.S. bombing of Syrian army positions in Deir Ezzor was in support of that plan. Other commentators finally catch up with that conclusion. The Turks are openly talking about such an escape plan for ISIS in Mosul. The Turkish news agency Anadolu published this "sensitive" operations plan. Point 4 says: An escape corridor into Syria will be left for Daesh so they can vacate Mosul
  • Two points in the Turkish plan will not come true. The Iraqi government has ordered that no Turkish troops take part in the Mosul operation and will designate them as enemies should they try. The Sunni "Nineveh Guard", trained by Turkey, paid by the Saudis and led by the former Anbar governor Atheel al-Nujaifi, will also be excluded. It was the Saudi proxy al-Nujaifi who practically handed Anbar over to ISIS by ordering his troops to flee when ISIS attacked. He and his Saudi and Turkish sponsors want to create an independent Sunni statelet in west Iraq just like the Kurds created their own entity within north Iraq. The U.S. hopes that the influx of ISIS fighters into Syria will keep the Russians and Iranians trapped in the "quagmire" Obama prescribed and finally destroy the Syrian state. It seems to have mostly given up on other plans. The U.S. military now acknowledges that fighting the Russian air defense in Syria would be a real challenge: "It’s not like we’ve had any shoot at an F-35,” the official said of the next-generation U.S. fighter jet. “We’re not sure if any of our aircraft can defeat the S-300.”
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  • There is a "no-fly zone" over west-Syria and it is the Russians who control it. All U.S. and Turkish talk about such a zone is moot. The Obama administration has for now also given up on other plans. The recent National Security Council meeting deferred on further decisions: Consideration of other alternatives, including the shipment of arms to U.S.-allied Kurdish forces in Syria, and an increase in the quantity and quality of weapons supplied to opposition fighters in Aleppo and elsewhere, were deferred until later, officials said. U.S. military action to stop Syrian and Russian bombing of civilians was even further down the list of possibilities. The only U.S. "hope" for its Syria plans is now the facilitation of another ISIS influx. That and the CIA coordinated actions of its allies. The Saudis Foreign Minister announced that his country will increase weapons flow to its al-Qaeda proxies in Syria. The "rebels" are still receiving TOW anti-tank missiles and other heavy weapons. Turkish proxy forces, some Syrians, some "Turkmen" from Chechnya and elsewhere, have taken Dabiq from ISIS. The village is said to become a focal point of a future apocalyptic Christian-Muslim battle. A lot of "western" commentators pointed to that as a reason why ISIS would fight for it. But that battle is only predicted for the period after the return of the Mahdi which has not been announced. The current ideological value of Dabiq is therefore low and, like in Jarablus, ISIS cooperated well and moved out before the Turkish proxies moved in. The Russians had allowed Turkey to enter Syria only within a limit of some 15 kilometers south of the Turkish border. Heavy artillery would have to stay on the Turkish side. The sole original purpose of the Turkish invasion was to prevent a Kurdish corridor from the eastern Kurdish areas in Syria to Afrin in the west. Such a corridor would have limited ISIS access to Turkey.
  • The Kurdish corridor has been prevented and ISIS access to Turkish controlled areas and Turkey itself is as open as ever. The Turkish military sees this as sufficient for its aims: Taking control of Dabiq had eliminated the threat to Turkey from rockets fired by the jihadists, the Turkish Armed Forces said in a written statement.
  • The Turkish military wants to halt the operation. But Erdogan and his proxies forces want to go further south and west to attack the Syrian army encirclement of east-Aleppo: President Tayyip Erdogan's spokesman Ibrahim Kalin said on Sunday Dabiq's liberation was a "strategic and symbolic victory" against Islamic State. He told Reuters it was important strategically that the Turkey-backed forces continue their advance toward the Islamic State stronghold of al-Bab. To move to al-Bab Turkish artillery, with its units relying on conscripts, would have to move south of the Turkish-Syrian border. Any attack on them by the Syrian or Russian forces would thus become legal. Kurdish guerilla would be a constant threat. This explains the new split between the Turkish military and political forces. It will be interesting to watch how that dispute develops. For Thursday the Russian command announced a unilateral temporary ceasefire in east-Aleppo to let the Jihadis move out. British and other special forces, said to be embedded with al-Qaeda, will be happy for the chance to leave. In Iraq some Shia militia are moving towards Tal Afar to cut of the ISIS path to the west. Russia promised to take political and military measures should it detect an ISIS move. In east-Syria the Russian and Syrian air-forces, Hizbullah and more Shia militia from Iraq are now preparing surprises for the expected ISIS influx from Mosul. How much can they risk when the U.S. provides further air-support for the ISIS move?
Paul Merrell

Rep. Mike Rogers: Russia May Be Behind Snowden Leak - 0 views

  • The chairman of the House Intelligence Committee has questioned whether Edward Snowden acted alone in leaking details of the National Security Agency's surveillance programs to U.S. and British newspapers last year. In a prerecorded interview due to air on NBC's "Meet The Press" Sunday, Rep. Mike Rogers, R-Mich., describes the former NSA contractor as "a thief whom we believe had some help. "Let me just say this. I believe there’s a reason he ended up in the hands, the loving arms, of an FSB agent in Moscow," Rogers said, according to an early transcript provided by the program. "I don’t think that’s a coincidence."
  • Reuters, today (11 days later) - reporting on "a rare interview at NSA's heavily guarded Fort Meade headquarters" from "Richard Ledgett, who leads a task force responding to the leaks":   The NSA's internal review has determined about 98 percent of the scope of the material that Snowden had accessed, and officials have found no evidence that he had help either within the NSA or from adversary spy agencies.
  • New York Times, today: According to senior government officials, F.B.I. agents from the bureau’s Washington field office, who are leading the investigation, believe that Mr. Snowden methodically downloaded the files over several months while working as a government contractor at the Hawaii facility. They also believe that he worked alone, the officials said.
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    Head of the House Intelligence Committee Mike Rogers makes some pretty strange accusations against Edward Snowden and gets ratification from Diane Feinstein, head of the corresponding Senate Committee. Nicely done page combining portions of articles and the video of the Rogers-Feinstein interview. Also an added note from Glenn Greenwald. It bears remembering that Snowden was on layover in Moscow waiting for a flight to South America when the U.S. pulled his passport; i.e., the reason he is in Russia is because of U.S. government action.  
Paul Merrell

Israel Supports US plan to Arm Syria Al Qaeda Rebels. Financing Terrorists To Wage the ... - 0 views

  • The president of the Israeli regime has supported the United States plans to provide foreign-backed militants in Syria with weapons. Washington announced last week that it would send arms to foreign-sponsored terrorists in Syria to oust President Bashar al-Assad from power after more than two years of uncertainty over the unrest in the Arab country. In an interview with Reuters, Shimon Peres described the plan as “wise,” saying that the US government had no other choice but to supply arms to Syria militants.
  • On June 14, Obama ordered his administration to provide the militants with weapons, a day after the US claimed that the Syrian government has used chemical weapons against the militants and thus crossed Washington’s “red line.” This comes while Damascus has rejected the allegation as “lies.” The delivery of the weapons, which include assault rifles, shoulder-fired rocket-propelled grenades and antitank missiles, would be carried out through the CIA, reports say. On June 15, Pentagon said that the US will keep its F-16 jets and patriot missile batteries in Jordan after the joint military exercises with the kingdom this month. This is while reports say that the US government has been preparing to impose a no-fly zone over Syria. Last week, a US defense official stated that Washington would keep a unit of US Marines on amphibious ships off the Red Sea coast after consultations with Jordan. The US-based Wall Street Journal had earlier reported that the no-fly zone could be implemented from Jordan.
Gary Edwards

Jim Douglass: A Letter to the American People (and Myself in Particular) On the Unspeak... - 0 views

  • “But if they’re not [authentic], then you have something of a magnitude beyond common experience that would reflect so devastatingly on our society as a whole and its corruptibility that you don’t know how to deal with it.”[4]
  • Since I began researching the assassinations of Martin Luther King, Malcolm X, and John and Robert Kennedy, I have been shocked by the obvious signature that is written across all four of them. It is the signature of what President Eisenhower identified as the military-industrial complex of our government.[6] We can read that signature at once in Dallas in the identity of the scapegoat Lee Harvey Oswald.
  • When Lee Harvey Oswald was arrested in Dallas after the assassination, he was carrying a Department of Defense ID card that is routinely issued to U.S. intelligence agents abroad. The FBI later obliterated the card by “testing” it but writer Mary La Fontaine discovered a copy of it in l992 in a Dallas Police Department photo. Oswald had been a radar operator for the CIA’s U-2 spy plane while he was a Marine stationed at Atsugi Naval Air Station in Japan. The Atsugi base served as the CIA’s center for its Far East operations. His fellow Marines David Bucknell and James Botelho said that when Oswald “defected” to the Soviet Union, he did so under the direction of U.S. intelligence.[8] The professed traitor Oswald was given a U.S.-government loan to assist his return from the USSR. When he settled in Dallas, his closest friend and mentor was longtime U.S. intelligence operative George DeMohrenschildt.
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  • Fidel Castro recognized “CIA” written all over Lee Harvey Oswald and the press releases on him that were being sent around the world within minutes of the assassination. The whole Dallas set-up was obvious to someone as familiar with CIA assassination plots as Fidel Castro was.
  • The more one investigates the assassination of John Kennedy, the more one becomes immersed in the depths of U.S. intelligence. The American intelligence community was the sea around Lee Harvey Oswald, Jack Ruby, and the host of anti-Castro Cuban exiles and gun runners with whom Oswald and Ruby worked closely.
  • By the Fall of l963 John Kennedy had also decided to withdraw from Vietnam.[14] Robert McNamara in his memoir In Retrospect[15] has described the contentious October 2, l963, National Security Council meeting at which Kennedy decided, against the arguments of most of his advisors: to withdraw all U.S. forces from Vietnam by the end of l965; to withdraw l,000 U.S. troops by the end of l963; to announce this policy publicly “to set it in concrete,” which Press Secretary Pierre Salinger did at a press conference when the meeting was over.[16]
  • After JFK’s assassination, his withdrawal policy was quietly voided.[18] In light of the future consequences of Dallas, it was not only John Kennedy who was crucified on November 22, l963, but 58,000 other Americans and over three million Vietnamese, Laotians, and Cambodians.
  • Clifton Baird was a Louisville, Kentucky, police officer in l965 when he was asked to help kill Martin Luther King. On September l8, l965, Baird gave a ride home in his car to fellow Louisville officer Arlie Blair after their 3-ll pm shift. Baird parked his car in Blair’s driveway, and the two men talked. Alarmed at what Blair was saying, Clifton Baird secretly turned on a microphone hidden under his seat that was connected to a recorder in a rear speaker. What Baird taped was an offer to engage in a conspiracy to kill Dr. King. He later shared the information with author William F. Pepper who included it in his book on the King assassination Orders to Kill.[32] Blair told Baird that an organization he belonged to was willing to pay $500,000 for the death of King. Would Baird be willing to participate? Baird said he definitely would not. He urged Blair to stay away from it, too.
  • The next day at a Louisville police station, Clifton Baird saw Arlie Blair conferring with a group of police officers and FBI agents. The FBI agents had, over a period of sixteen years or more, developed a close relationship with members of the Louisville police force.
  • On September 20, l965, Baird taped a second car conversation with Blair. Blair again brought up the $500,000 bounty for King, which Baird had now connected with the FBI.
  • Myron Billett was another witness to the truth. By undergoing a conversion in his own life, Myron Billett was able to reveal that in January l968 FBI and CIA agents offered a New York Mafia leader a $l million contract to kill Martin Luther King.
  • After Dr. King was assassinated on April 4, Sam Giancana gave Myron Billett $30,000 and told him to start running: They both knew too much and were going to be killed. Giancana was in fact murdered in his Chicago home in June l975, just before he was scheduled to testify before the Church Committee concerning assassination plots. His killing took the form of a symbolic warning to other possible assassination witnesses. Giancana was shot seven times in a circle around his mouth.
  • In his Canadian Broadcasting Corporation lectures at the end of l967 (later published as The Trumpet of Conscience[39]), King’s vision went beyond even these overwhelming concerns. He saw the next step as a global nonviolent movement using escalating acts of massive civil disobedience to disrupt the entire international order and block economic and political exploitation across borders.
Paul Merrell

Putin's Line in the Sand: No Regime Change in Syria - 0 views

  • The Syrian war can divided into two parts: The pre-Incirlik period and the post-Incirlik period. The pre-Incirlik period is roughly the four year stretch during which US-backed Islamic militias and al Qaida-linked groups fought the Syrian army with the intention of removing President Bashar al Assad from power. This first phase of the war ended in a draw. The post-Incirlik period looks like it could produce an entirely different outcome due to the fact that the US will be able to deploy its drones and warplanes from a Turkish airbase (Incirlik) that’s just 15 minutes flying-time from Syria. That will boost the number of sorties the USAF can able to carry out while increasing the effectiveness of its jihadi forces on the ground which will conduct their operations under the protection of US air cover. This will greatly improve their chances for success. The New York Times calls the Incirlik deal a “game-changer” which is an understatement. By allowing US F-16s to patrol the skies over Syria, Washington will impose a de facto no-fly zone over the country severely limiting Assad’s ability to battle the US-backed militias that have seized large swaths of the countryside and are now descending on Damascus. And while the war cannot be won by airpower alone, this new tactical reality tilts the playing field in favor the jihadis. In other words, the Incirlik agreement changes everything.
  • The Obama administration now believes that regime change is within its reach. Yes, they know it will require some back-up from US Special Forces and Turkish combat troops, but it’s all doable.  This is why Obama has shrugged off Russia’s plan for a transitional government or for forming a coalition to defeat ISIS.  The US doesn’t have to compromise on these matters because, after all, it has a strategically-located airbase from which it can protect its proxy-army, bomb cross-border targets, and control the skies over Syria. All Obama needs to do is intensify the war effort, put a little more pressure on Assad, and wait for the regime to collapse. This is why we should expect a dramatic escalation as we begin Phase 2 of the conflict. Russian President Vladimir Putin knows this, which is why he’s sending more weapons, supplies and advisors to Syria. He’s signaling to Washington that he knows what they’re up to and that he’ll respond if they carry things too far. In an interview with Russia’s state Channel 1, Putin said, “We have our ideas about what we will do and how we will do it in case the situation develops toward the use of force or otherwise. We have our plans.”
  • The administration is very nervous about Putin’s plans which is why they keep probing to see if they can figure out what he has up his sleeve.
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  • But the fact is, Putin is not going to allow Assad to be removed by force. It’s that simple. Obama and his advisors suspect this, but they are not 100 percent certain so they keep looking for confirmation one way or the other. But Putin is not going to provide a clear answer because he doesn’t want to tip his hand or appear confrontational. But that doesn’t mean he’s not resolute. He is, and Washington knows it. In effect, Putin has drawn a line in the sand and told the US that if they cross that line, there’s going to trouble. So it’s up to Obama really. He can either seek a peaceful solution along the lines that Moscow has recommended or push for regime change and risk a confrontation with Russia. Those are the two choices. Unfortunately, Washington doesn’t have an “off” switch anymore, so changing policy is really not in the cards. Instead, the US war machine will continue to lumber ahead erratically until it hits an impasse and sputters to a halt. Once again, the immovable object will prevail over the unstoppable force (as it did in Ukraine), albeit at great cost to the battered people of Syria, their nation and the entire region.
  • It’s clear that Obama is emboldened by the Incirlik deal and believes that, with Turkey’s help, he can achieve US imperial ambitions in Syria. But it’s not going to happen.  Russia, Iran and Hezbollah are prepared to defend their ally Assad and stop Washington dead-in-its-tracks.  Obama will have succeeded in destroying another sovereign nation and scattering its people across the Middle East and Europe. But the US mission will fall short of its original objectives. There will be no regime change in Syria. Putin, Nasrallah and Khamenei will make sure of it.
Paul Merrell

U.S. Strategy to Fight Terrorism Increasingly Uses Proxies - NYTimes.com - 0 views

  • During the height of the wars in Iraq and Afghanistan, the United States military often carried out dozens of daily operations against Al Qaeda and other extremist targets with heavily armed commandos and helicopter gunships.But even before President Obama’s speech on Wednesday sought to underscore a shift in counterterrorism strategy — away from the Qaeda strongholds in and near those countries — American forces had changed their tactics in combating Al Qaeda and its affiliates, relying more on allied or indigenous troops with a limited American combat role.
  • Navy SEAL or Army Delta Force commandos will still carry out raids against the most prized targets, such as the seizure last fall of a Libyan militant wanted in the 1998 bombings of two United States Embassies in East Africa. But more often than not, the Pentagon is providing intelligence and logistics assistance to proxies, including African troops and French commandos fighting Islamist extremists in Somalia and Mali. And it is increasingly training foreign troops — from Niger to Yemen to Afghanistan — to battle insurgents on their own territory so that American armies will not have to.
  • To confront several crises in Africa, the United States has turned to helping proxies. In Somalia, for instance, the Pentagon and the State Department support a 22,000-member African force that has driven the Shabab from their former strongholds in Mogadishu, the capital, and other urban centers, and continues to battle the extremists in their mountain and desert redoubts.
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  • In the Central African Republic, American transport planes ferried 1,700 peacekeepers from Burundi and Rwanda to the strife-torn nation earlier this year, but refrained from putting American boots on the ground.The United States flies unarmed reconnaissance drones from a base in Niger to support French and African troops in Mali, but it has conspicuously stayed out of that war, even after the conflict helped spur a terrorist attack in Algeria in which Americans were taken hostage.In addition to proxies, the Pentagon is training and equipping foreign armies to tackle their own security challenges. In the past two years, the Defense Department has gradually increased its presence in Yemen, sending about 50 Special Operations troops to train Yemeni counterterrorism and security forces, and a like number of commandos to help identify and target Qaeda suspects for drone strikes, according to American officials.
  • Across Africa this year, soldiers from a 3,500-member brigade in the Army’s First Infantry Division are conducting more than 100 missions, ranging from a two-man sniper team in Burundi to humanitarian exercises in South Africa.
  • Last October, for instance, American troops assisted by F.B.I. and C.I.A. agents seized a suspected Qaeda leader on the streets of Tripoli, Libya, while on the same day a Navy SEAL team raided the seaside villa of a militant leader in a firefight on the coast of Somalia. The Navy commandos exchanged gunfire with militants at the home of a senior leader of the Shabab but were ultimately forced to withdraw.The Libyan militant captured in Tripoli was indicted in 2000 for his role in the 1998 bombings of the United States Embassies in Kenya and Tanzania. The militant, born Nazih Abdul-Hamed al-Ruqai and known by his nom de guerre, Abu Anas al-Libi, had a $5 million bounty on his head; his capture at dawn ended a 15-year manhunt.
  • Mr. Ruqai was taken to Manhattan for trial after being held for a week in military custody aboard a Navy vessel in the Mediterranean, where he was reportedly interrogated for intelligence purposes. He has pleaded not guilty and is scheduled to go to trial in November.
Paul Merrell

The Woman at the Center of the C.I.A.'s Torture Report - 0 views

  • or the past eight months, there has been a furious battle raging behind closed doors at the White House, the C.I.A., and in Congress. The question has been whether the Senate Select Committee on Intelligence would be allowed to use pseudonyms as a means of identifying characters in the devastating report it released last week on the C.I.A.’s abusive interrogation and detention program. Ultimately, the committee was not allowed to, and now we know one reason why. The NBC News investigative reporter Matthew Cole has pieced together a remarkable story revealing that a single senior officer, who is still in a position of high authority over counterterrorism at the C.I.A.—a woman who he does not name—appears to have been a source of years’ worth of terrible judgment, with tragic consequences for the United States. Her story runs through the entire report. She dropped the ball when the C.I.A. was given information that might very well have prevented the 9/11 attacks; she gleefully participated in torture sessions afterward; she misinterpreted intelligence in such a way that it sent the C.I.A. on an absurd chase for Al Qaeda sleeper cells in Montana. And then she falsely told congressional overseers that the torture worked.
  • Had the Senate Intelligence Committee been permitted to use pseudonyms for the central characters in its report, as all previous congressional studies of intelligence failures, including the widely heralded Church Committee report in 1975, have done, it might not have taken a painstaking, and still somewhat cryptic, investigation after the fact in order for the American public to hold this senior official accountable. Many people who have worked with her over the years expressed shock to NBC that she has been entrusted with so much power. A former intelligence officer who worked directly with her is quoted by NBC, on background, as saying that she bears so much responsibility for so many intelligence failures that “she should be put on trial and put in jail for what she has done.” Instead, however, she has been promoted to the rank of a general in the military, most recently working as the head of the C.I.A.’s global-jihad unit. In that perch, she oversees the targeting of terror suspects around the world. (She was also, in part, the model for the lead character in “Zero Dark Thirty.”)
  • Amazingly, perhaps, more than thirteen years after the 9/11 attacks, no one at the C.I.A. has ever been publicly held responsible for this failure. Evidently, the C.I.A. was adamant in its negotiations with the White House and the Senate Intelligence Committee that the American public never learn the names of anyone directly involved in this failure.
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  • According to sources in the law-enforcement community who I have interviewed over the years, and who I spoke to again this week, this woman—whose name the C.I.A. has asked the news media to withhold—had supervision over an underling at the agency who failed to share with the F.B.I. the news that two of the future 9/11 hijackers had entered the United States prior to the terrorist attacks.
  • As NBC recounts, this egregious chapter was apparently only the first in a long tale, in which the same C.I.A. official became a driving force in the use of waterboarding and other sadistic interrogation techniques that were later described by President Obama as “torture.” She personally partook in the waterboarding of Khalid Sheikh Mohammed, the architect of the 9/11 attacks, at a black site in Poland. According to the Senate report, she sent a bubbly cable back to C.I.A. headquarters in 2003, anticipating the pain they planned to inflict on K.S.M. in an attempt to get him to confirm a report from another detainee, about a plot to use African-American Muslims training in Afghanistan for future terrorist attacks. “i love the Black American Muslim at AQ camps in Afghanuistan (sic). … Mukie (K.S.M.) is going to be hatin’ life on this one,” she wrote, according to the report. But, as NBC notes, she misconstrued the intelligence gathered from the other detainee. Somehow, the C.I.A. mistakenly believed that African-American Muslim terrorists were already in the United States. The intelligence officials evidently pressed K.S.M. so hard to confirm this, under such physical duress, that he eventually did, even though it was false—leading U.S. officials on a wild-goose chase for black Muslim Al Qaeda operatives in Montana. According to the report, the same woman oversaw the extraction of this false lead, as well as the months-long rendition and gruesome interrogation of another detainee whose detention was a case of mistaken identity. Later, in 2007, she accompanied then C.I.A. director Michael Hayden to brief Congress, where she insisted forcefully that the torture program had been a tremendous and indispensable success.
  • Readers can speculate on how the pieces fit together, and who the personalities behind this program are. But without even pseudonyms, it is exceedingly hard to connect the dots. It seems entirely possible—though, again, one can only speculate—that the C.I.A. overcompensated for its pre-9/11 intelligence failures by employing overly harsh measures later. Once they’d made a choice that America had never officially made before—of sanctioning torture—it seems possible that they felt they had to defend its efficacy, despite mounting evidence to the contrary. If so, this would be worth learning. But without names, or even pseudonyms, it is almost impossible to piece together the puzzle, or hold anyone in the American government accountable. Evidently, that is exactly what the C.I.A. was fighting for during its eight-month-long redaction process, behind all those closed doors.
Paul Merrell

Why You Should Care About Predatory Shadow Banking | nsnbc international - 0 views

  • According to the Consumer Financial Protection Bureau (CFPB), the shadow banking industry (SBI) is largely unregulated and functions outside of proper oversight and accountability. The CFPB estimates that the $46 billion payday loan or cash advance industry has no oversight, refuses to give full disclosures of interest and fees involved, and takes an annual percentage of an excess of 300% against borrowers.
  • For the first time the CFPB has suggested regulating the SBI because of their dubious practices and products. The SBI refers to a loan of $500 or less wherein the borrower “provides a personal check dated on their next payday for the full balance or give the lender permission to debit their bank accounts. The total includes charges often ranging from $15 to $30 per $100 borrowed. Interest-only payments, sometimes referred to as rollovers, are common.” The Consumer Federation of America (CFA) counts 32 states in the US that “permit payday loans at triple-digit interest rates, or with no rate cap at all.” Shockingly 80% of payday loans are rolled over within 14 days while an estimated 50% of these loans are “in a sequence at least 10 loans long.” David Silberman, associate director for market research and regulation explained: “Our research has found that what is supposed to be a short-term emergency loan can turn into a long-term and expensive debt trap.”
Paul Merrell

The Aviationist » U.S. aircraft carrier and part of its escort "sunk" by Fren... - 0 views

  • If you thought aircraft carriers were invincible you were wrong.On Mar. 4, the French Ministry of Defense released some interesting details, about the activity conducted by one of its nuclear-powered attack submarine (SNA) in the waters of the North Atlantic Ocean.According to French MoD website (that is no longer online, even if you can still find a cached version of the article titled “Le SNA Saphir en entraînement avec l’US Navy au large de la Floride”), the Saphir submarine has recently taken part in a major exercise with the U.S. Navy off Florida.The aim of the exercise was joint training with U.S. Carrier Strike Group 12 made by the aircraft carrier Theodore Roosevelt, several Ticonderoga cruisers or Arleigh Burke-class destroyers and a Los Angeles-class submarine, ahead of their operational deployment.The scenario of the drills saw some imaginary states assaulting American economic and territorial interests; threats faced by a naval force led by USS Theodore Roosevelt.During the first phase of the exercise, the Saphir was integrated into the friendly force to support anti-submarine warfare (ASW) by cooperating with U.S. P-3C Orion P-8A Poseidon MPA (Maritime Patrol Aircraft): its role was to share all the underwater contacts with the other ASW assets.In the second phase of the exercise, the Saphir was integrated with the enemy forces and its mission was to locate the aircraft carrier Theodore Roosevelt and its accompanying warships and prepare to attack the strike group.
  • While the fictious political situation deteriorated, the Saphir quietly slipped in the heart of the multi-billion-dollar aircraft carrier’s defensive screen, while avoiding detection by ASW assets.On the morning of the last day, the order to attack was finally given, allowing the Saphir to pretend-sinking the USS Theodore Roosevelt and most of its escort.Although we don’t really know many more details about the attack and its outcome, the scripted exercise its RoE (Rules of Engagement), the simulated sinking of a U.S. supercarrier proves the flattop’s underwater defenses are not impenetrable.This is the reason why modern subs often train with aircraft carriers: they pose a significant threat to powerful Carrier Strike Groups.Obviously, this was not the first time a submarine scored a simulated carrier kill with torpedo attacks.For instance, in 2007 HMCS Corner Brook, a Canadian diesel-electric submarine “sunk” UK’s Illustrious during an exercise in the Atlantic.
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    Thus proving that we need many more aircraft carrier groups, I guess.
Paul Merrell

Putin Throws Down the Gauntlet - 0 views

  • Would you be willing to defend your country against a foreign invasion? That’s all Putin is doing in Syria. He’s just preempting the tidal wave of jihadis that’ll be coming his way once the current fracas is over.  He figures it’s better to exterminate these US-backed maniacs in Syria now than face them in Chechnya, St Petersburg and Moscow sometime in the future.  Can you blame him? After all, if Washington’s strategy works in Syria, then you can bet they’ll try the same thing in Beirut, Tehran and Moscow. So what choice does Putin have? None. He has no choice.  His back is against the wall. He has to fight.  No one in Washington seems to get this. They think Putin can throw in the towel and call it “quits” at the first sign of getting bogged down. But he can’t throw in the towel because Russia’s facing an existential crisis.  If he loses, then Russia’s going to wind up on the same scrap heap as Afghanistan, Iraq or Libya. You can bet on it. So the only thing he can do is win. Period. Victory isn’t an option, it’s a necessity.
  • Of course they’ve noticed. Everyone’s noticed. Everyone knows Washington is on the warpath and its leaders have gone stark raving mad. How could they not notice? But all that’s done is focus the mind on the task at hand, and the task at hand is to whoop the tar out of the terrorists, put an end to Washington’s sick little jihadi game, and go home. That’s Russia’s plan in a nutshell.  No one is trying to cobble together the long-lost Soviet empire. That’s pure bunkum.  Russia just wants to clean up this nest of vipers and call it a day. There’s nothing more to it than that. But what if the going gets tough and Syria becomes a quagmire? That doesn’t change anything, because Russia still has to win. If that means sending ground troops to Syria, then that’s what Putin will do. If that means asymmetrical warfare, like arming the Kurds or the Yemenis, or the Taliban or even disparate anti-regime Shiites in Saudi Arabia, then he’ll do that too. Whatever it takes. This isn’t a game, it’s a fight for survival; Russia’s survival as a sovereign country. That’s what the stakes are. That’s not something Putin takes lightly.
  • The reason I ask this now is because, on Tuesday, Secretary of State John Kerry is scheduled to attend an emergency meeting in Moscow with his Russian counterpart Sergei Lavrov to discuss issues that are too sensitive to reveal to the public. There’s a lot of speculation about what the two men will talk about, but the urgency and the secrecy of the meeting suggests that the topic will be one of great importance. So allow me to make a guess about what the topic will be. When Kerry arrives in Moscow tomorrow he’ll be rushed to meeting room at the Kremlin where he’ll be joined by Lavrov, Putin, Minister of Defense Sergey Shoygu and high-ranking members from military intelligence. Then, following the initial introductions, Kerry will be shown the evidence Russian intelligence has gathered on last Sunday’s attack on a Syrian military base east of Raqqa that killed three Syrian soldiers and wounded thirteen others. The Syrian government immediately condemned the attack and accused US warplanes of conducting the operation. Later in the day,  Putin delivered an uncharacteristically-harsh and threatening statement that left no doubt that he thought the attack was a grave violation of the accepted rules of engagement and, perhaps, a declaration of war.
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  • Why would an incident in the village of Ayyash in far-flung Deir Ezzor Province be so important that it would bring the two nuclear-armed adversaries to the brink of war? I’ll tell you why: It’s because there were other incidents prior to the bombing in Ayyash that laid the groundwork for the current clash. There was the ISIS downing of the Russian airliner that killed 224 Russian civilians. Two weeks after that tragedy, Putin announced at the G-20 meetings that he had gathered intelligence proving that 40 countries –including some in the G-20 itself–were involved in the funding and supporting of ISIS. This story was completely blacked out in the western media and, so far, Russia has not revealed the names of any of the countries involved. So, I ask you, dear reader, do you think the United States is on that list of ISIS supporters?
  • Then there was the downing of the Russian Su-24, a Russian bomber that was shot down by Turkish F-16s while it was carrying out its mission to exterminate terrorists in Syria. Many analysts do not believe that the   Su-24 could have been destroyed without surveillance and logistical support provided by US AWACs or US satellites. Many others scoff at the idea that Turkey would engage in such a risky plan without the go-ahead from Washington. Either way, the belief that Washington was directly involved in the downing of a Russian warplane is widespread. So, I ask you, dear reader, do you think Washington gave Turkey the greenlight? Finally, we have the aerial attack on the Syrian military base in Deir Ezzor, an attack that was either executed by US warplanes or US-coalition warplanes. Not only does the attack constitute a direct assault on the Russian-led coalition (an act of war) but the bombing raid was also carried out in tandem  with a “a full-scale ISIS offensive on the villages of Ayyash and Bgelia.”  The coordination suggests that either the US or US allies were providing  air-cover for ISIS terrorists to carry out their ground operations.  Author Alexander Mercouris– who is certainly no conspiracy nut–expands on this idea in a recent piece at Russia Insider which provides more detail on the incident. The article begins like this:
  • “Did Members of the US-Led Coalition Carry Out an Air Strike to Help ISIS? Russia Implies They Did. Russian statement appears to implicate aircraft from two member states of the US led coalition in the air strike on the Syrian military base in Deir az-Zor….This information – if it is true – begs a host of questions. Firstly, the Syrian military base that was hit by the air strike was apparently the scene of a bitter battle between the Syrian military and the Islamic State.  It seems that shortly after the air strike – and most probably as a result of it – the Islamic State’s fighters were able to storm it. Inevitably, that begs the question of whether the aircraft that carried out the air strike were providing air support to the fighters of the Islamic State. On the face of it, it looks like they were. After all, if what happened was simply a mistake, it might have been expected that the US and its allies would say as much.  If so, it is an extremely serious and worrying development, suggesting that some members of the US-led anti-Islamic State coalition are actually in league with the Islamic State.  (“Did Members of the US-Led Coalition Carry Out an Air Strike to Help ISIS?” Alexander Mercouris, Russia Insider)
  • So there it is in black and white. The Russians think someone in the US-led coalition is teaming up with ISIS. That should make for some interesting conversation when Kerry sashays into the Kremlin today. Does Kerry have any clue that Putin and his lieutenants are probably going to produce evidence that coalition warplanes were involved in the bombing of the Syrian military base?  How do you think he’ll respond to that news? Will he apologize or just stand there dumbstruck? And how will he react when Putin tells him that if a similar incident takes place in the future, Russian warplanes and anti-aircraft units are going to shoot the perpetrator down? If I am not mistaken, Kerry is in for a big surprise on Tuesday. He’s about to learn that Putin takes war very seriously and is not going to let Washington sabotage his plans for success. If Kerry’s smart, he’ll pass along that message to Obama and tell him he needs to dial it down a notch if he wants to avoid a war with Russia.
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    Article published just before Kerry's meeting with Lavrov, et al, after which Kerry announced that Assad stepping down is no longer a U.S. pre-condition of negotiating peace in Syria. It's important to keep in mind here that non-interference in the internal affairs of foreign nations is a fundamental tenet of international law, one that the U.S. regime change position on Syria openly flouted, as it did in Afghanistan, Iraq, and Libya. So what is behind Kerry's suddenly-acquired respect for the right of the people of Syria to choose their own leader? Mike Whitney offers us a smorgasbord of reasons in this article, all of which boil down to Russian blackmail, a threat to go public with incredibly damning information on what the U.S. and allies have been up to in Syria. This may be a turning point in the Syrian War, since the positions of the Gulf Coast Council (Saudi Arabia, Qatar, UAE, etc.) and the salafist jihadis they have supplied to take down Assad has been unequivocal insistence that Assad agree to step down as a precondition of negotiation.  I.e., the U.S. is forking away from the Gulf Coast Council/jihadi position. How will they react? 
Paul Merrell

Syria: Obama authorizes boots on ground to fight ISIS - CNNPolitics.com - 0 views

  • The United States is set to deploy troops on the ground in Syria for the first time to advise and assist rebel forces combating ISIS, the White House said Friday. White House spokesman Josh Earnest said that the U.S. would be deploying "less than 50" Special Operations forces, who will be sent to Kurdish-controlled territory in northern Syria. The American troops will help local Kurdish and Arab forces fighting ISIS with logistics and are planning to bolster their efforts.
  • The Special Ops troops will first be deployed to northern Syria to help coordinate local ground forces and U.S.-led coalition efforts to fight ISIS, the senior administration official said. The local forces in that area have been the most effective U.S. partners in confronting ISIS.
  • He was also careful to insist: "These forces do not have a combat mission."
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  • The President has approved a current cap of less than 50 troops, with the first contingent expected to be about two dozen. But more could be sent, the official said.
  • There will be additional Special Operations forces available for raids against targets in both Syria and Iraq when high-value ISIS targets are identified, the official said.The U.S. support for the anti-ISIS fighters has a crucial goal of making them capable of challenging ISIS control of its unofficial capital, Raqqa. The effort is to make them able to isolate, take control, and "ultimately hold" the key city, the official said. There is no prediction of when that might be possible.
  • The U.S. will also boost its military footprint in confronting ISIS in Syria by deploying A-10 and F-15 fighter jets to Incirlik Air Base in Turkey. And the U.S. is also eying the establishment of a Special Forces task force in Iraq to boost U.S. efforts to target ISIS and its leaders, the administration official said. President Barack Obama has also authorized enhancing military aid to Jordan and Lebanon to help counter ISIS.
  • Obama has long resisted an American military presence on the ground to combat ISIS in Iraq and Syria but has reluctantly escalated U.S. involvement in that fight over time since launching the military effort in 2014.The number of U.S. military forces in Iraq has swelled to more than 3,500 since Obama first announced the deployment of up to 300 American military advisers to Iraq in June 2014.U.S. Special Ops have previously conducted some secretive missions on the ground in Syria as well. But the deployment marks the first permanent presence of U.S. ground troops in Syria since the U.S. began leading an international effort last year to confront ISIS, the militant Islamist group which now controls broad swaths of territory in Iraq and Syria.
  • The troops to be sent to Syria are not expected to serve on the front lines with rebel forces and, according to a U.S. official, they will rotate in and out of Syria from the existing U.S. base in Irbil, Iraq.But they are entering a very hot combat zone and have the right to engage the enemy if they come under fire. They could also join Syrian and Kurdish forces on raids if they get explicit permission from Washington.
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    Although not mentioned in the article, the accompanying video goes through many of Obama's prior statements that he would not put American boots on the ground in Syria. 
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