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Paul Merrell

Running for Cover: A Sham Air Force Summit Can't Fix the Close Air Support Gap Created ... - 0 views

  • “I can’t wait to be relieved of the burdens of close air support,” Major General James Post, the vice commander of Air Combat Command (ACC), allegedly told a collection of officers at a training session in August 2014. As with his now notorious warning that service members would be committing treason if they communicated with Congress about the successes of the A-10, Major General Post seems to speak for the id of Air Force headquarters’ true hostility towards the close air support (CAS) mission. Air Force four-stars are working hard to deny this hostility to the public and Congress, but their abhorrence of the mission has been demonstrated through 70 years of Air Force headquarters’ budget decisions and combat actions that have consistently short-changed close air support. For the third year in a row (many have already forgotten the attempt to retire 102 jets in the Air Force’s FY 2013 proposal), the Air Force has proposed retiring some or all of the A-10s, ostensibly to save money in order to pay for “modernization.” After failing to convince Congress to implement their plan last year (except for a last minute partial capitulation by retiring Senate and House Armed Services Committee chairmen Senator Carl Levin (D-MI) and Representative Buck McKeon (R-CA)) and encountering uncompromising pushback this year, Air Force headquarters has renewed its campaign with more dirty tricks.
  • First, Air Force headquarters tried to fight back against congressional skepticism by releasing cherry-picked data purporting to show that the A-10 kills more friendlies and civilians than any other U.S. Air Force plane, even though it actually has one of the lowest fratricide and civilian casualty rates. With those cooked statistics debunked and rejected by Senate Armed Services Chairman Senator John McCain (R-AZ), Air Force headquarters hastily assembled a joint CAS “Summit” to try to justify dumping the A-10. Notes and documents from the Summit meetings, now widely available throughout the Air Force and shared with the Project On Government Oversight’s Center for Defense Information (CDI), reveal that the recommendations of the Summit working groups were altered by senior Air Force leaders to quash any joint service or congressional concerns about the coming gaps in CAS capabilities. Air Force headquarters needed this whitewash to pursue, yet again, its anti-A-10 crusade without congressional or internal-Pentagon opposition.
  • The current A-10 divestment campaign, led by Air Force Chief of Staff Mark Welsh, is only one in a long chain of Air Force headquarters’ attempts by bomber-minded Air Force generals to get rid of the A-10 and the CAS mission. The efforts goes as far back as when the A-10 concept was being designed in the Pentagon, following the unfortunate, bloody lessons learned from the Vietnam War. For example, there was a failed attempt in late-1980s to kill off the A-10 by proposing to replace it with a supposedly CAS-capable version of the F-16 (the A-16). Air Force headquarters tried to keep the A-10s out of the first Gulf War in 1990, except for contingencies. A token number was eventually brought in at the insistence of the theater commander, and the A-10 so vastly outperformed the A-16s that the entire A-16 effort was dismantled. As a reward for these A-10 combat successes, Air Force headquarters tried to starve the program by refusing to give the A-10 any funds for major modifications or programmed depot maintenance during the 1990s. After additional combat successes in the Iraq War, the Air Force then attempted to unload the A-10 fleet in 2004.
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  • To ground troops and the pilots who perform the mission, the A-10 and the CAS mission are essential and crucial components of American airpower. The A-10 saves so many troop lives because it is the only platform with the unique capabilities necessary for effective CAS: highly maneuverable at low speeds, unmatched survivability under ground fire, a longer loiter time, able to fly more sorties per day that last longer, and more lethal cannon passes than any other fighter. These capabilities make the A-10 particularly superior in getting in close enough to support our troops fighting in narrow valleys, under bad weather, toe-to-toe with close-in enemies, and/or facing fast-moving targets. For these reasons, Army Chief of Staff General Ray Odierno has called the A-10 “the best close air support aircraft.” Other Air Force platforms can perform parts of the mission, though not as well; and none can do all of it. Senator Kelly Ayotte (R-NH) echoed the troops’ combat experience in a recent Senate Armed Services committee hearing: “It's ugly, it's loud, but when it comes in…it just makes a difference.”
  • In 2014, Congress was well on the way to roundly rejecting the Air Force headquarters’ efforts to retire the entire fleet of 350 A-10s. It was a strong, bipartisan demonstration of support for the CAS platform in all four of Congress’s annual defense bills. But in the final days of the 113th Congress, a “compromise” heavily pushed by the Air Force was tucked into the National Defense Authorization Act for FY 2015. The “compromise” allowed the Air Force to move A-10s into virtually retired “backup status” as long as the Cost Assessment and Program Evaluation (CAPE) office in DoD certified that the measure was the only option available to protect readiness. CAPE, now led by former Assistant Secretary of the Air Force for Financial Management and Comptroller Jamie Morin, duly issued that assessment—though in classified form, thus making it unavailable to the public. In one of his final acts as Secretary of Defense, Chuck Hagel then approved moving 18 A-10s to backup status.
  • The Air Force intends to replace the A-10 with the F-35. But despite spending nearly $100 billion and 14 years in development, the plane is still a minimum of six years away from being certified ready for any real—but still extremely limited—form of CAS combat. The A-10, on the other hand, is continuing to perform daily with striking effectiveness in Afghanistan, Iraq, and Syria—at the insistence of the CENTCOM commander and despite previous false claims from the Air Force that A-10s can’t be sent to Syria. A-10s have also recently been sent to Europe to be available for contingencies in Ukraine—at the insistence of the EUCOM Commander. These demands from active theaters are embarrassing and compelling counterarguments to the Air Force’s plea that the Warthog is no longer relevant or capable and needs to be unloaded to help pay for the new, expensive, more high-tech planes that Air Force headquarters vastly prefers even though the planes are underperforming.
  • So far, Congress has not been any more sympathetic to this year’s continuation of General Welsh’s campaign to retire the A-10. Chairman McCain rejected the Air Force’s contention that the F-35 was ready enough to be a real replacement for the A-10 and vowed to reverse the A-10 retirement process already underway. Senator Ayotte led a letter to Defense Secretary Ashton Carter with Senators Tom Cotton (R-AR), Lindsey Graham (R-SC), Thom Tillis (R-NC), Roger Wicker (R-MS), Mike Crapo (R-ID), Johnny Isakson (R-GA), and Richard Burr (R-NC) rebuking Hagel’s decision to place 18 A-10s in backup inventory. Specifically, the Senators called the decision a “back-door” divestment approved by a “disappointing rubber stamp” that guts “the readiness of our nation’s best close air support aircraft.” In the House, Representative Martha McSally (R-AZ) wrote to Secretary Carter stating that she knew from her own experience as a former A-10 pilot and 354th Fighter Squadron commander that the A-10 is uniquely capable for combat search and rescue missions, in addition to CAS, and that the retirement of the A-10 through a classified assessment violated the intent of Congress’s compromise with the Air Force:
  • Some in the press have been similarly skeptical of the Air Force’s intentions, saying that the plan “doesn’t add up,” and more colorfully, calling it “total bullshit and both the American taxpayer and those who bravely fight our wars on the ground should be furious.” Those reports similarly cite the Air Force’s longstanding antagonism to the CAS mission as the chief motive for the A-10’s retirement.
  • By announcing that pilots who spoke to Congress about the A-10 were “committing treason,” ACC Vice Commander Major General James Post sparked an Inspector General investigation and calls for his resignation from POGO and other whistleblower and taxpayer groups. That public relations debacle made it clear that the Air Force needed a new campaign strategy to support its faltering A-10 divestment campaign. On the orders of Air Force Chief of Staff General Mark Welsh, General Herbert “Hawk” Carlisle—the head of Air Combat Command—promptly announced a joint CAS Summit, allegedly to determine the future of CAS. It was not the first CAS Summit to be held (the most recent previous Summit was held in 2009), but it was the first to receive so much fanfare. As advertised, the purpose of the Summit was to determine and then mitigate any upcoming risks and gaps in CAS mission capabilities. But notes, documents, and annotated briefing slides reviewed by CDI reveal that what the Air Force publicly released from the Summit is nothing more than a white-washed assessment of the true and substantial operational risks of retiring the A-10.
  • Just prior to the Summit, a working group of approximately 40 people, including CAS-experienced Air Force service members, met for three days at Davis-Monthan Air Force Base to identify potential risks and shortfalls in CAS capabilities. But Air Force headquarters gave them two highly restrictive ground rules: first, assume the A-10s are completely divested, with no partial divestments to be considered; and second, assume the F-35 is fully CAS capable by 2021 (an ambitious assumption at best). The working groups included A-10 pilots, F-16 pilots, and Joint Terminal Attack Controllers (JTACs), all with combat-based knowledge of the CAS platforms and their shortfalls and risks. They summarized their findings with slides stating that the divestment would “cause significant CAS capability and capacity gaps for 10 to 12 years,” create training shortfalls, increase costs per flying hour, and sideline over 200 CAS-experienced pilots due to lack of cockpits for them. Additionally, they found that after the retirement of the A-10 there would be “very limited” CAS capability at low altitudes and in poor weather, “very limited” armor killing capability, and “very limited” ability to operate in the GPS-denied environment that most experts expect when fighting technically competent enemies with jamming technology, an environment that deprives the non-A-10 platforms of their most important CAS-guided munition. They also concluded that even the best mitigation plans they were recommending would not be sufficient to overcome these problems and that significant life-threatening shortfalls would remain.
  • General Carlisle was briefed at Davis-Monthan on these incurable risks and gaps that A-10 divestment would cause. Workshop attendees noted that he understood gaps in capability created by retiring the A-10 could not be solved with the options currently in place. General Carlisle was also briefed on the results of the second task to develop a list of requirements and capabilities for a new A-X CAS aircraft that could succeed the A-10. “These requirements look a lot like the A-10, what are we doing here?” he asked. The slides describing the new A-X requirements disappeared from subsequent Pentagon Summit presentations and were never mentioned in any of the press releases describing the summit.
  • At the four-day Pentagon Summit the next week, the Commander of the 355th Fighter Wing, Davis-Monthan Air Force Base, Col. James P. Meger, briefed lower level joint representatives from the Army and the Marine Corps about the risks identified by the group at Davis-Monthan. Included in the briefing was the prediction that divestment of the A-10 would result in “significant capability and capacity gaps for the next ten to twelve years” that would require maintaining legacy aircraft until the F-35A was fully operational. After the presentation, an Army civilian representative became concerned. The slides, he told Col. Meger, suggested that the operational dangers of divestment of the A-10 were much greater than had been previously portrayed by the Air Force. Col. Meger attempted to reassure the civilian that the mitigation plan would eliminate the risks. Following the briefing, Col. Meger met with Lt. Gen. Tod D. Wolters, the Deputy Chief of Staff for Operations for Air Force Headquarters. Notably, the Summit Slide presentation for general officers the next day stripped away any mention of A-10 divestment creating significant capability gaps. Any mention of the need to maintain legacy aircraft, including the A-10, until the F-35A reached full operating capability (FOC) was also removed from the presentation.
  • The next day, Col. Meger delivered the new, sanitized presentation to the Air Force Chief of Staff. There was only muted mention of the risks presented by divestment. There was no mention of the 10- to 12-year estimated capability gap, nor was there any mention whatsoever of the need to maintain legacy aircraft—such as the A-10 or less capable alternatives like the F-16 or F-15E—until the F-35A reached FOC. Other important areas of concern to working group members, but impossible to adequately address within the three days at Davis-Monthan, were the additional costs to convert squadrons from the A-10 to another platform, inevitable training shortfalls that would be created, and how the deployment tempos of ongoing operations would further exacerbate near-term gaps in CAS capability. To our knowledge, none of these concerns surfaced during any part of the Pentagon summit.
  • Inevitably, the Air Force generals leading the ongoing CAS Summit media blitz will point congressional Armed Services and Appropriations committees to the whitewashed results of their sham summit. When they do, Senators and Representatives who care about the lives of American troops in combat need to ask the generals the following questions: Why wasn’t this summit held before the Air Force decided to get rid of A-10s? Why doesn’t the Air Force’s joint CAS summit include any statement of needs from soldiers or Marines who have actually required close air support in combat? What is the Air Force’s contingency plan for minimizing casualties among our troops in combat in the years after 2019, if the F-35 is several years late in achieving its full CAS capabilities? When and how does the Air Force propose to test whether the F-35 can deliver close support at least as combat-effective as the A-10’s present capability? How can that test take place without A-10s? Congress cannot and should not endorse Air Force leadership’s Summit by divesting the A-10s. Instead, the Senate and House Armed Services Committees need to hold hearings that consider the real and looming problems of inadequate close support, the very problems that Air Force headquarters prevented their Summit from addressing. These hearings need to include a close analysis of CAPE’s assessment and whether the decision to classify its report was necessary and appropriate. Most importantly, those hearings must include combat-experienced receivers and providers of close support who have seen the best and worst of that support, not witnesses cherry-picked by Air Force leadership—and the witnesses invited must be free to tell it the way they saw it.
  • If Congress is persuaded by the significant CAS capability risks and gaps originally identified by the Summit’s working groups, they should write and enforce legislation to constrain the Air Force from further eroding the nation’s close air support forces. Finally, if Congress believes that officers have purposely misled them about the true nature of these risks, or attempted to constrain service members’ communications with Congress about those risks, they should hold the officers accountable and remove them from positions of leadership. Congress owes nothing less to the troops they send to fight our wars.
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     Though not touched on in the article, the real problem is that the A10 has no proponents at the higher ranks of the Air Force because it is already bought and paid for; there's nothing in the A10 for the big Air Force aircraft manufacturing defense contractors. The F35, on the other hand is, is a defense contractor wet dream. It's all pie in the sky and big contracts just to get the first one in the air, let alone outfit it with the gear and programming needed to use it to inflict harm. It's been one cost-overrun after another and delay after delay. It's a national disgrace that has grown to become the most expensive military purchase in history. And it will never match the A10 for the close air support role. It's minimum airspeed is too high and its close-in maneuverability will be horrible. The generals, of course, don't want to poison the well for their post-military careers working for the defense contractors by putting a halt to the boondobble. Their answer: eliminate the close air support mission for at least 10-12 years and then attempt it with the F35.   As a former ground troop, that's grounds for the Air Force generals' court-martial and dishonorable discharge. I would not be alive today were it not for close air support. And there are tens of thousands of veterans who can say that in all truth. The A10 wasn't available back in my day, but by all reports its the best close air support weapons platform ever developed. It's a tank killer and is heavily armored, with redundant systems for pilot and aircraft survivability. The A10 is literally built around a 30 mm rotary cannon that fires at 3,900 rounds per minute. It also carries air to ground rockets and is the only close air support aircraft still in the U.S. arsenal. Fortunately, John McCain "get it" on the close air support mission and has managed to mostly protect the A10 from the generals. If you want to learn  more about the F35 scandal, try this Wikipedia article section; although it's enoug
Gary Edwards

2012 ELECTION - NEIL HOWE STYLE « The Burning Platform - 0 views

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    Excellent analysis of the 2012 elections based on recent polling data and the voting history of five generations. excerpt: Pundits have long been predicting that the presidential election will be much closer and much meaner in 2012 than it was in 2008. Closer it now is. According to the RCP Poll Average, the race is now a virtual tie: Incumbent Obama now leads by a mere 1.8 percent over Romney, whereas challenger Obama led McCain by 7.6 percent exactly four years ago. It will certainly revolve around a very different array of issues-much less argument about the war on terror and GOP performance, and a lot more about the stagnating economy and Democratic performance. In one respect, however, the next election will be a replay of the last: There will be a historically large divide in the preferences of younger voters (under 30) versus older voters (65+). In 2008, this divide (21 percentage points) was wider than in any election since the advent of age-bracketed voting data in the 1960s. The second-biggest divide (16 percentage points) was back in 1972, when nearly half of all young voters voted for McGovern while older voters went overwhelmingly for Nixon. I've been tracking generational leanings in the polls pretty carefully. The Pew Research Center has issued several reports (most notably, The Generation Gap and the 2012 Election) exploring this divide, and Time followed up with its own cover story ("The New Generation Gap"). More recently, Mike and Morley, Forbes, The New York Times, and many others have also weighed in. Bottom line: Every generation is today a bit more favorable toward Obama than they were in 2010 and a good deal less favorable than in 2008. The partisan gap between the Democrat-leaning young and the Republican-leaning old, however, remains as strong as ever-at around 20 percent. Back in 2008, the big story was how and why today's rising Millennial Generation voted by a large and decisive margin for the D
Paul Merrell

Scientist-developed malware prototype covertly jumps air gaps using inaudible sound | A... - 0 views

  • Computer scientists have proposed a malware prototype that uses inaudible audio signals to communicate, a capability that allows the malware to covertly transmit keystrokes and other sensitive data even when infected machines have no network connection. The proof-of-concept software—or malicious trojans that adopt the same high-frequency communication methods—could prove especially adept in penetrating highly sensitive environments that routinely place an "air gap" between computers and the outside world. Using nothing more than the built-in microphones and speakers of standard computers, the researchers were able to transmit passwords and other small amounts of data from distances of almost 65 feet. The software can transfer data at much greater distances by employing an acoustical mesh network made up of attacker-controlled devices that repeat the audio signals. The researchers, from Germany's Fraunhofer Institute for Communication, Information Processing, and Ergonomics, recently disclosed their findings in a paper published in the Journal of Communications. It came a few weeks after a security researcher said his computers were infected with a mysterious piece of malware that used high-frequency transmissions to jump air gaps. The new research neither confirms nor disproves Dragos Ruiu's claims of the so-called badBIOS infections, but it does show that high-frequency networking is easily within the grasp of today's malware.
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    Not event the Sneaker Net is secure. Note to self: surgically remove all microphones and video cams from all systems (just the laptop, I think, but check). 
Paul Merrell

N.S.A. Devises Radio Pathway Into Computers - NYTimes.com - 1 views

  • The National Security Agency has implanted software in nearly 100,000 computers around the world that allows the United States to conduct surveillance on those machines and can also create a digital highway for launching cyberattacks.While most of the software is inserted by gaining access to computer networks, the N.S.A. has increasingly made use of a secret technology that enables it to enter and alter data in computers even if they are not connected to the Internet, according to N.S.A. documents, computer experts and American officials.The technology, which the agency has used since at least 2008, relies on a covert channel of radio waves that can be transmitted from tiny circuit boards and USB cards inserted surreptitiously into the computers. In some cases, they are sent to a briefcase-size relay station that intelligence agencies can set up miles away from the target.
  • The radio frequency technology has helped solve one of the biggest problems facing American intelligence agencies for years: getting into computers that adversaries, and some American partners, have tried to make impervious to spying or cyberattack. In most cases, the radio frequency hardware must be physically inserted by a spy, a manufacturer or an unwitting user.
  • The N.S.A. and the Pentagon’s Cyber Command have implanted nearly 100,000 “computer network exploits” around the world, but the hardest problem is getting inside machines isolated from outside communications.
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  • the program, code-named Quantum, has also been successful in inserting software into Russian military networks and systems used by the Mexican police and drug cartels, trade institutions inside the European Union, and sometime partners against terrorism like Saudi Arabia, India and Pakistan, according to officials and an N.S.A. map that indicates sites of what the agency calls “computer network exploitation.”“What’s new here is the scale and the sophistication of the intelligence agency’s ability to get into computers and networks to which no one has ever had access before,” said James Andrew Lewis, the cybersecurity expert at the Center for Strategic and International Studies in Washington. “Some of these capabilities have been around for a while, but the combination of learning how to penetrate systems to insert software and learning how to do that using radio frequencies has given the U.S. a window it’s never had before.”
  • Over the past two months, parts of the program have been disclosed in documents from the trove leaked by Edward J. Snowden, the former N.S.A. contractor. A Dutch newspaper published the map of areas where the United States has inserted spy software, sometimes in cooperation with local authorities, often covertly. Der Spiegel, a German newsmagazine, published the N.S.A.'s catalog of hardware products that can secretly transmit and receive digital signals from computers, a program called ANT. The New York Times withheld some of those details, at the request of American intelligence officials, when it reported, in the summer of 2012, on American cyberattacks on Iran.
  • A program named Treasure Map tried to identify nearly every node and corner of the web, so that any computer or mobile device that touched it could be located.
  • A 2008 map, part of the Snowden trove, notes 20 programs to gain access to big fiber-optic cables — it calls them “covert, clandestine or cooperative large accesses” — not only in the United States but also in places like Hong Kong, Indonesia and the Middle East. The same map indicates that the United States had already conducted “more than 50,000 worldwide implants,” and a more recent budget document said that by the end of last year that figure would rise to about 85,000. A senior official, who spoke on the condition of anonymity, said the actual figure was most likely closer to 100,000.
  • The N.S.A.'s efforts to reach computers unconnected to a network have relied on a century-old technology updated for modern times: radio transmissions.In a catalog produced by the agency that was part of the Snowden documents released in Europe, there are page after page of devices using technology that would have brought a smile to Q, James Bond’s technology supplier.
  • One, called Cottonmouth I, looks like a normal USB plug but has a tiny transceiver buried in it. According to the catalog, it transmits information swept from the computer “through a covert channel” that allows “data infiltration and exfiltration.” Another variant of the technology involves tiny circuit boards that can be inserted in a laptop computer — either in the field or when they are shipped from manufacturers — so that the computer is broadcasting to the N.S.A. even while the computer’s user enjoys the false confidence that being walled off from the Internet constitutes real protection.The relay station it communicates with, called Nightstand, fits in an oversize briefcase, and the system can attack a computer “from as far away as eight miles under ideal environmental conditions.” It can also insert packets of data in milliseconds, meaning that a false message or piece of programming can outrace a real one to a target computer. Similar stations create a link between the target computers and the N.S.A., even if the machines are isolated from the Internet.
  • Computers are not the only targets. Dropoutjeep attacks iPhones. Other hardware and software are designed to infect large network servers, including those made by the Chinese.Most of those code names and products are now at least five years old, and they have been updated, some experts say, to make the United States less dependent on physically getting hardware into adversaries’ computer systems.
  • But the Stuxnet strike does not appear to be the last time the technology was used in Iran. In 2012, a unit of the Islamic Revolutionary Guards Corps moved a rock near the country’s underground Fordo nuclear enrichment plant. The rock exploded and spewed broken circuit boards that the Iranian news media described as “the remains of a device capable of intercepting data from computers at the plant.” The origins of that device have never been determined.
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    Even radio transceivers emplanted in USB jacks. So now to be truly secure, we need not only an air gap but also a Faraday cage protecting the air gap. 
Paul Merrell

Americans on Wrong Side of Income Gap Run Out of Means to Cope - 0 views

  • “We’ve exhausted our coping mechanisms,” said Alan Krueger, an economics professor at Princeton University in New Jersey and former chairman of President Barack Obama’s Council of Economic Advisers. “They weren’t sustainable.” The result has been a downsizing of expectations. By almost two to one — 64 percent to 33 percent — Americans say the U.S. no longer offers everyone an equal chance to get ahead, according to the latest Bloomberg National Poll. The lack of faith is especially pronounced among those making less than $50,000 a year, with close to three-quarters in the Dec. 6-9 survey saying the economy is unfair.
  • The diminished expectations have implications for the economy. Workers are clinging to their jobs as prospects fade for higher-paying employment. Households are socking away more money and charging less on credit cards. And young adults are living with their parents longer rather than venturing out on their own. In the meantime, record-high stock prices are enriching wealthier Americans, exacerbating polarization and bringing income inequality to the political forefront. Even independent government agencies like the Securities and Exchange Commission and the Federal Reserve have been dragged into the debate.
  • “The basic bargain at the heart of our economy has frayed,” Obama said in a Dec. 4 speech in Washington. “This is the defining challenge of our time: Making sure our economy works for every working American.” Democratic lawmakers also intend to press next year for a higher minimum wage to tackle the yawning gap between rich and poor, Durbin said. Republicans aren’t ceding the issue. “The American dream is certainly more in doubt than in decades,” House Speaker John Boehner of Ohio said in response to Obama’s speech. “But after more than five years in office, the president has no one to blame but himself.”
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  • Income inequality has been rising more or less steadily since the mid-1970s. The Gini coefficient, a broad-based measure of inequality, stood at a record high last year, according to Census Bureau data dating back 46 years.
  • Women who became unemployed during the recession and its aftermath have been slower to find new positions. Among women losing jobs they’d held for at least three years between January 2009 and the end of 2011, 50 percent were re-employed by the start of 2012, while the share for men was 61 percent, according to a Bureau of Labor Statistics report released in February. Households turned to stepped-up borrowing to help make ends meet, until that avenue was shut off by the collapse of house prices. About 10.8 million homeowners still owed more money on their mortgages than their properties were worth in the third quarter, according to Seattle-based Zillow Inc. The fallout has made many Americans less inclined to take risks. The quits rate — the proportion of Americans in the workforce who voluntarily left their jobs — stood at 1.7 percent in October. While that’s up from 1.5 percent a year earlier, it’s below the 2.2 percent average for 2006, the year house prices started falling, government data show.
  • “The middle has really collapsed,” said Lawrence Katz, an economics professor at Harvard University in Cambridge, Massachusetts, and a former chief economist at the Labor Department in Washington. Even those with college degrees are having trouble keeping up, he said. While they earn more than those with less schooling, they’ve seen no real wage growth in recent years. The median income of men 25 years of age and older with a bachelor’s degree was $56,656 last year, 10 percent less than in 2007 after taking account of inflation, according to Census data.
  • It’s the richest of the rich who are reaping the most benefit as an increasingly interconnected and technologically sophisticated world puts a premium on those perceived to have the highest skills — a phenomenon dubbed “winner take all” by Cornell University Professor Robert Frank. Government policies also play a role. The Treasury Department, for instance, taxes capital gains racked up by the wealthy on the sale of shares, bonds and other assets at about half the rate of ordinary income. The top 1 percent captured 95 percent of the gains in incomes in the first three years of the recovery, based on analysis of tax returns by Saez. Those less well-off, meanwhile, are running out of ways to cope. The percentage of working-age women who are in the labor force steadily climbed from a post-World War II low of 32 percent to a peak of 60.3 percent in April 2000, fueling a jump in dual-income households and helping Americans deal with slow wage growth for a while. Since the recession ended, the workforce participation rate for women has been in decline, echoing a longer-running trend among men. November data showed 57 percent of women in the labor force and 69.4 percent of men.
  • The disparity has widened since the recovery began in mid-2009. The richest 10 percent of Americans earned a larger share of income last year than at any time since 1917, according to Emmanuel Saez, an economist at the University of California at Berkeley. Those in the top one-tenth of income distribution made at least $146,000 in 2012, almost 12 times what those in the bottom tenth made, Census Bureau data show. Economists have posited a variety of explanations for the growing differences in incomes. Manufacturing companies moved once high-paying jobs abroad, to China and elsewhere. Technological advances led to the loss of clerical and office work, especially relating to routine tasks. The decline of unions — 11.3 percent of workers were represented in 2012 compared with 20.1 percent in 1983 — has advantaged bosses at the expense of their employees.
  • Millennials — adults aged 18 to 32 — are still slow to set out on their own more than four years after the recession ended, according to an Oct. 18 report by the Pew Research Center in Washington. Just over one in three head their own households, close to a 38-year low set in 2010. Obama has proposed a raft of policies to attack the widening wage gap — from simplifying the tax code and increasing exports to enhancing worker training and boosting pre-kindergarten education. Yet in a divided Washington he hasn’t made much progress pushing them through. The president’s renewed focus on income inequality has more to do with politics than policy, said Douglas Holtz-Eakin, president of the American Action Forum, a self-described center- right institute in Washington.
  • “It’s great politics to demagogue income distribution and complain about the rich getting ahead and the poor falling behind,” said Holtz-Eakin, a former Congressional Budget Office director. “The substance of what he’s actually done doesn’t match the enormity of the problem as he’s portrayed it.”
  • The wage-gap debate has reverberated to other parts of Washington, as the SEC published a rule Sept. 18 that would compel public companies to reveal pay ratios between chief executives and their employees. While businesses have decried the requirement as overreach, some investors welcome the data as a way to help assess a company’s health.
  • Across companies in the S&P 500, the average multiple of CEO compensation to that of rank-and-file workers is 204, up 20 percent since 2009, according to data compiled by Bloomberg in April. The Fed also has been caught up in the debate over growing income disparities. Lawmakers from both parties have questioned whether its bond-buying policy, called quantitative easing, has benefited the rich at the expense of those less well-off by boosting prices of stocks and other assets.
  • The S&P 500 stock index has risen 29 percent in 2013. The richest third of U.S. households account for 89 percent of all equities ownership, according to the Center for Retirement Research at Boston College.
  • Janet Yellen, nominated to take over as Fed chairman next year, defended the central bank’s actions at a Senate Banking Committee hearing on Nov. 14. “The policies we’ve undertaken have been meant to generate a robust recovery,” Yellen told the committee. The growing calls for action to reduce income inequality have translated into a national push for a higher minimum wage. Fast-food workers in 100 cities took to the streets Dec. 5 to demand a $15 hourly salary.
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    Monetary policy of, by, and for banksters continues in the U.S. One irony is that banksters press for transition to an all digital currency so that savers can be penalized, a blatant "trickle-up"economic policy, whilst also pressing for more bank bailouts, wielding the thoroughly-discredited "trickle down" economic theory. But "trickle down" theory, in the context of bank bailouts, has not successfully trickled down and the only beneficiaries have been the few Americans who can still invest in the stock market, paying the highest dividends to the wealthiest among us. Has their ever been a time when the stock market's behavior has been so divorced from the well-being of the middle and lower economic classes? I doubt there has been at least in the last 50 years. Where would we be if the bank bail-out trillions had instead been mailed as checks to the middle and lower economic classes? "Trickle up" works and that is what built the American economy to its peak in inflation-adjusted dollars -- an affluent middle class. But do not expect leadership from Washington, D.C. in correcting income inquequality; only political rhetoric and a fight over extension of unemployment benefits, now lapsed. "According to the World Bank, the GINI coefficient "measures the extent to which the distribution of income or consumption expenditure among individuals households within an economy deviates from a perfectly equal distribution." Therefore it is used as an indication of income inequality within countries. ... In the late 2000s, Chile had the highest GINI coefficient, after taxes and transfers, among OECD member countries. The United States, Turkey and Mexico came right before it. At the other end of the scale, Slovenia, Denmark and Norway led the ranking with the lowest levels of income inequality." http://www.gfmag.com/tools/global-database/economic-data/11944-wealth-distribution-income-inequality.html#ixzz2pGpv4xGZ Higher minimum wages? How about instead abolishing the Feder
Gary Edwards

GAP Statement on Edward Snowden & NSA Domestic Surveillance - Government Accountability... - 0 views

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    The Government Accountability Project has provided a very clear statement of the laws and methods our government is now using in the "War on Whistleblowers". GAP also explains why it is so important that we the people put an end to this war on patriots willing to risk everything to defend and uphold the Constitution.
Paul Merrell

Top 1% Got 93% of Income Growth as Rich-Poor Gap Widened - Bloomberg - 0 views

  • The earnings gap between rich and poor Americans was the widest in more than four decades in 2011, Census data show, surpassing income inequality previously reported in Uganda and Kazakhstan. The notion that each generation does better than the last -- one aspect of the American Dream -- has been challenged by evidence that average family incomes fell last decade for the first time since World War II.
Paul Merrell

Do The Math: Global War On Terror Has Killed 4 Million Muslims Or More - 1 views

  • A study released earlier this year revealed the shocking death toll of the United States’s “War on Terror” since the 9/11 terrorist attacks, but the true body count could be even higher. Published in March by Physicians for Social Responsibility, the study, conducted by a team that included some Nobel Prize winners, determined that at least 1.3 million people have died as a result of war since Sept.11, 2001, but the real figure might be as high as two million. The study was an attempt to “close the gaps” in existing research, including studies like the Iraq Body Count,” which puts the number of violent deaths in that country at about 219,000 since 2003, based on media reports of the time period. Investigative journalist Nafeez Ahmed, writing in April for Middle East Eye, explained some of the ways the previous figures fell short, according to the physicians’ research: “For instance, although 40,000 corpses had been buried in Najaf since the launch of the war, IBC [Iraq Body Count] recorded only 1,354 deaths in Najaf for the same period. That example shows how wide the gap is between IBC’s Najaf figure and the actual death toll – in this case, by a factor of over 30.
  • Such gaps are replete throughout IBC’s database. In another instance, IBC recorded just three airstrikes in a period in 2005, when the number of air attacks had in fact increased from 25 to 120 that year. Again, the gap here is by a factor of 40.” The physicians behind the study also praised a controversial report from the medical journal The Lancet that placed the toll count far higher than that of Iraq Body Count, at closer to one million dead. In addition to the war in Iraq, the PSR study added additional victims from other countries where the United States has waged war: “To this, the PSR study adds at least 220,000 in Afghanistan and 80,000 in Pakistan, killed as the direct or indirect consequence of US-led war: a ‘conservative’ total of 1.3 million. The real figure could easily be ‘in excess of 2 million’.” These figures may still be underestimating the real death toll, according to Ahmed. These studies only account for the victims of violent conflict, but not the many more who will die as a result of the damage war brings to crucial infrastructure, from roads to farms to hospitals — not to mention devastating sanctions like those placed on Iraq after the first Gulf War in 1991. He continues:
  • “Undisputed UN figures show that 1.7 million Iraqi civilians died due to the West’s brutal sanctions regime, half of whom were children. The mass death was seemingly intended. Among items banned by the UN sanctions were chemicals and equipment essential for Iraq’s national water treatment system. A secret US Defence Intelligence Agency (DIA) document discovered by Professor Thomas Nagy of the School of Business at George Washington University amounted, he said, to ‘an early blueprint for genocide against the people of Iraq.’” Similar figures for Afghanistan, he reports, could bring totals to four million or more. As Ahmed points out in his article, the majority of those killed in these wars and those suffering most from these wars, statistically speaking, were Muslim — a stark contrast to the common view that radical Muslim terrorists are the deadliest group in the Middle East. Rather, it would seem the American military are the worst killers, and the death toll resembles religious genocide. In 2009, Stephen M. Walt, a professor of international relations at Harvard, wrote in Foreign Policy:
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  • “How many Muslims has the United States killed in the past thirty years, and how many Americans have been killed by Muslims? Coming up with a precise answer to this question is probably impossible, but it is also not necessary, because the rough numbers are so clearly lopsided.” Or, as Ben Affleck famously quipped to Bill Maher last year: “We’ve killed more Muslims than they’ve killed us by an awful lot.”
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    Reminds of an opinion poll conducted in the UK a couple of years ago. When asked how many Iraqis were killed by the invasion and occupation, the media answer was "about 5,000." 
Gary Edwards

Naked Capitalism: "Only 21% Say U.S. Government Has Consent of the Governed ... - 0 views

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    A new Rasmussen poll finds: The founding document of the United States, the Declaration of Independence, states that governments derive "their just powers from the consent of the governed." Today, however, just 21% of voters nationwide believe that the federal government enjoys the consent of the governed. *** Seventy-one percent (71%) of all voters now view the federal government as a special interest group, and 70% believe that the government and big business typically work together in ways that hurt consumers and investors.That helps explain why 75% of voters are angry at the policies of the federal government, and 63% say it would be better for the country if most members of Congress are defeated this November… In his new book, In Search of Self-Governance, Scott Rasmussen observes that the American people are "united in the belief that our political system is broken, that politicians are corrupt, and that neither major political party has the answers." He adds that "the gap between Americans who want to govern themselves and the politicians who want to rule over them may be as big today as the gap between the colonies and England during the 18th century." *** Sixty percent (60%) of voters think that neither Republican political leaders nor Democratic political leaders have a good understanding of what is needed today. Thirty-five percent (35%) say Republicans and Democrats are so much alike that an entirely new political party is needed to represent the American people. Nearly half of all voters believe that people randomly selected from the phone book could do as good a job as the current Congress.
Gary Edwards

Google Reader - "Banksters" public tag collection - 1 views

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    Google Reader is my primary tool for browsing news, articles and blogs.  This is a public page (with Atom RSS) to all gReader items tagged "Bankster".  Wish i could push my gBookmarks into Diigo, or, tag my gReader items with a Diigo Group/List/Comment.  Sadly though, it is increasingly hard for me to keep up my Diigo Groups when all the items bookmarked first show up in Google Reader!  Anyway, this public page is an experiment to get around the gap between gReader and Diigo.  A gap growing by the day.
Paul Merrell

Forex Flash: Capital flight abounds in Eurozone - UBS - 0 views

  • According to Research Analyst Gareth Berry at UBS, "We expect that the theme of capital flight out of the Eurozone will continue to run for some time in the wake of the Cyprus bailout." The immediate focus, of course, is on deposit flight but capital controls will be expected to do their job for now. Of course, the images of bank runs and deposit flight are powerful, but we expect capital flight in the form of investment outflows is even more pernicious. Deposit flight exposes funding gaps on a banking-sector level, but capital outflows, be they via portfolio flows or FDI reversals, tend to expose the funding gaps of an entire nation, a fact that emerging markets can strongly attest to. As timely data is still rather difficult to come by, we use our Equity Flow monitor from last week to see if asset managers are now liquidating underlying investments in the Eurozone, especially taking into account that our FX Flow Monitor has been showing such trends for several weeks.
  • Unsurprisingly, the Eurozone suffered the most out of all G10 markets we track, but the distribution of selling was even more troubling. Eurozone-based clients actually registered flat net flow - i.e. repatriation back to the Eurozone offsets their overseas interest. However, for non-Eurozone based investors it was one way: the US and UK both registered strong inflows last week but almost all of the buying came from their own clients leaving the Eurozone. "If past history is anything to go by, the Eurozone's funding gap may widen further and it's the real economy, beyond the banks, that will suffer." Berry warns.
Paul Merrell

President Xi's speech to Davos in full | World Economic Forum - 0 views

  • “It was the best of times, it was the worst of times.” These are the words used by the English writer Charles Dickens to describe the world after the Industrial Revolution. Today, we also live in a world of contradictions. On the one hand, with growing material wealth and advances in science and technology, human civilization has developed as never before. On the other hand, frequent regional conflicts, global challenges like terrorism and refugees, as well as poverty, unemployment and widening income gap have all added to the uncertainties of the world. Many people feel bewildered and wonder: What has gone wrong with the world? To answer this question, one must first track the source of the problem. Some blame economic globalization for the chaos in the world. Economic globalization was once viewed as the treasure cave found by Ali Baba in The Arabian Nights, but it has now become the Pandora’s box in the eyes of many. The international community finds itself in a heated debate on economic globalization.
  • Today, I wish to address the global economy in the context of economic globalization. The point I want to make is that many of the problems troubling the world are not caused by economic globalization. For instance, the refugee waves from the Middle East and North Africa in recent years have become a global concern. Several million people have been displaced, and some small children lost their lives while crossing the rough sea. This is indeed heartbreaking. It is war, conflict and regional turbulence that have created this problem, and its solution lies in making peace, promoting reconciliation and restoring stability. The international financial crisis is another example. It is not an inevitable outcome of economic globalization; rather, it is the consequence of excessive chase of profit by financial capital and grave failure of financial regulation. Just blaming economic globalization for the world’s problems is inconsistent with reality, and it will not help solve the problems.
  • But we should also recognize that economic globalization is a double-edged sword. When the global economy is under downward pressure, it is hard to make the cake of global economy bigger. It may even shrink, which will strain the relations between growth and distribution, between capital and labor, and between efficiency and equity. Both developed and developing countries have felt the punch. Voices against globalization have laid bare pitfalls in the process of economic globalization that we need to take seriously. As a line in an old Chinese poem goes, “Honey melons hang on bitter vines; sweet dates grow on thistles and thorns.” In a philosophical sense, nothing is perfect in the world. One would fail to see the full picture if he claims something is perfect because of its merits, or if he views something as useless just because of its defects. It is true that economic globalization has created new problems, but this is no justification to write economic globalization off completely. Rather, we should adapt to and guide economic globalization, cushion its negative impact, and deliver its benefits to all countries and all nations.
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  • Whether you like it or not, the global economy is the big ocean that you cannot escape from. Any attempt to cut off the flow of capital, technologies, products, industries and people between economies, and channel the waters in the ocean back into isolated lakes and creeks is simply not possible. Indeed, it runs counter to the historical trend.
  • First, lack of robust driving forces for global growth makes it difficult to sustain the steady growth of the global economy. The growth of the global economy is now at its slowest pace in seven years. Growth of global trade has been slower than global GDP growth. Short-term policy stimuli are ineffective. Fundamental structural reform is just unfolding. The global economy is now in a period of moving toward new growth drivers, and the role of traditional engines to drive growth has weakened. Despite the emergence of new technologies such as artificial intelligence and 3-D printing, new sources of growth are yet to emerge. A new path for the global economy remains elusive. Second, inadequate global economic governance makes it difficult to adapt to new developments in the global economy. Madame Christine Lagarde recently told me that emerging markets and developing countries already contribute to 80 percent of the growth of the global economy. The global economic landscape has changed profoundly in the past few decades. However, the global governance system has not embraced those new changes and is therefore inadequate in terms of representation and inclusiveness. The global industrial landscape is changing and new industrial chains, value chains and supply chains are taking shape. However, trade and investment rules have not kept pace with these developments, resulting in acute problems such as closed mechanisms and fragmentation of rules.
  • Third, uneven global development makes it difficult to meet people’s expectations for better lives. Dr. Schwab has observed in his book The Fourth Industrial Revolution that this round of industrial revolution will produce extensive and far-reaching impacts such as growing inequality, particularly the possible widening gap between return on capital and return on labor. The richest one percent of the world’s population own more wealth than the remaining 99 percent. Inequality in income distribution and uneven development space are worrying. Over 700 million people in the world are still living in extreme poverty. For many families, to have warm houses, enough food and secure jobs is still a distant dream. This is the biggest challenge facing the world today. It is also what is behind the social turmoil in some countries. All this shows that there are indeed problems with world economic growth, governance and development models, and they must be resolved. The founder of the Red Cross Henry Dunant once said, “Our real enemy is not the neighboring country; it is hunger, poverty, ignorance, superstition and prejudice.” We need to have the vision to dissect these problems; more importantly, we need to have the courage to take actions to address them.
  • First, we should develop a dynamic, innovation-driven growth model. The fundamental issue plaguing the global economy is the lack of driving force for growth.Innovation is the primary force guiding development. Unlike the previous industrial revolutions, the fourth industrial revolution is unfolding at an exponential rather than linear pace. We need to relentlessly pursue innovation. Only with the courage to innovate and reform can we remove bottlenecks blocking global growth and development. With this in mind, G-20 leaders reached an important consensus at the Hangzhou Summit, which is to take innovation as a key driver and foster new driving force of growth for both individual countries and the global economy. We should develop a new development philosophy and rise above the debate about whether there should be more fiscal stimulus or more monetary easing. We should adopt a multipronged approach to address both the symptoms and the underlying problems. We should adopt new policy instruments and advance structural reform to create more space for growth and sustain its momentum. We should develop new growth models and seize opportunities presented by the new round of industrial revolution and digital economy. We should meet the challenges of climate change and aging population. We should address the negative impact of IT application and automation on jobs. When cultivating new industries and new forms models of business models, we should create new jobs and restore confidence and hope to our peoples.
  • Second, we should pursue a well-coordinated and inter-connected approach to develop a model of open and win-win cooperation. Today, mankind has become a close-knit community of shared future. Countries have extensive converging interests and are mutually dependent. All countries enjoy the right to development. At the same time, they should view their own interests in a broader context and refrain from pursuing them at the expense of others. We should commit ourselves to growing an open global economy to share opportunities and interests through opening-up and achieve win-win outcomes. One should not just retreat to the harbor when encountering a storm, for this will never get us to the other shore of the ocean. We must redouble efforts to develop global connectivity to enable all countries to achieve inter-connected growth and share prosperity. We must remain committed to developing global free trade and investment, promote trade and investment liberalization and facilitation through opening-up and say no to protectionism. Pursuing protectionism is like locking oneself in a dark room. While wind and rain may be kept outside, that dark room will also block light and air. No one will emerge as a winner in a trade war.
  • Third, we should develop a model of fair and equitable governance in keeping with the trend of the times. As the Chinese saying goes, people with petty shrewdness attend to trivial matters, while people with vision attend to governance of institutions. There is a growing call from the international community for reforming the global economic governance system, which is a pressing task for us. Only when it adapts to new dynamics in the international economic architecture can the global governance system sustain global growth. Countries, big or small, strong or weak, rich or poor, are all equal members of the international community. As such, they are entitled to participate in decision-making, enjoy rights and fulfill obligations on an equal basis. Emerging markets and developing countries deserve greater representation and voice. The 2010 IMF quota reform has entered into force, and its momentum should be sustained. We should adhere to multilateralism to uphold the authority and efficacy of multilateral institutions. We should honor promises and abide by rules. One should not select or bend rules as he sees fit. The Paris Agreement is a hard-won achievement which is in keeping with the underlying trend of global development. All signatories should stick to it instead of walking away from it as this is a responsibility we must assume for future generations.
  • Fourth, we should develop a balanced, equitable and inclusive development model. As the Chinese saying goes, “A just cause should be pursued for common good.”Development is ultimately for the people. To achieve more balanced development and ensure that the people have equal access to opportunities and share in the benefits of development, it is crucial to have a sound development philosophy and model and make development equitable, effective and balanced.
  • We should foster a culture that values diligence, frugality and enterprise and respects the fruits of hard work of all. Priority should be given to addressing poverty, unemployment, the widening income gap and the concerns of the disadvantaged to promote social equity and justice. It is important to protect the environment while pursuing economic and social progress so as to achieve harmony between man and nature and between man and society. The 2030 Agenda for Sustainable Development should be implemented to realize balanced development across the world. A Chinese adage reads, “Victory is ensured when people pool their strength; success is secured when people put their heads together.” As long as we keep to the goal of building a community of shared future for mankind and work hand in hand to fulfill our responsibilities and overcome difficulties, we will be able to create a better world and deliver better lives for our peoples.
  • This is a path that puts people’s interests first. China follows a people-oriented development philosophy and is committed to bettering the lives of its people. Development is of the people, by the people and for the people. China pursues the goal of common prosperity. We have taken major steps to alleviate poverty and lifted over 700 million people out of poverty, and good progress is being made in our efforts to finish building a society of initial prosperity in all respects. This is a path of pursuing reform and innovation. China has tackled difficulties and met challenges on its way forward through reform. China has demonstrated its courage to take on difficult issues, navigate treacherous rapids and remove institutional hurdles standing in the way of development. These efforts have enabled us to unleash productivity and social vitality. Building on progress of 30-odd years of reform, we have introduced more than 1,200 reform measures over the past four years, injecting powerful impetus into China’s development.
  • This is a path of pursuing common development through opening-up. China is committed to a fundamental policy of opening-up and pursues a win-win opening-up strategy. China’s development is both domestic and external oriented; while developing itself, China also shares more of its development outcomes with other countries and peoples. China’s outstanding development achievements and the vastly improved living standards of the Chinese people are a blessing to both China and the world. Such achievements in development over the past decades owe themselves to the hard work and perseverance of the Chinese people, a quality that has defined the Chinese nation for several thousand years. We Chinese know only too well that there is no such thing as a free lunch in the world. For a big country with over 1.3 billion people, development can be achieved only with the dedication and tireless efforts of its own people. We cannot expect others to deliver development to China, and no one is in a position to do so. When assessing China’s development, one should not only see what benefits the Chinese people have gained, but also how much hard effort they have put in, not just what achievements China has made, but also what contribution China has made to the world. Then one will reach a balanced conclusion about China’s development.
  • Between 1950 and 2016, despite its modest level of development and living standard, China provided more than 400 billion yuan of foreign assistance, undertook over 5,000 foreign assistance projects, including nearly 3,000 complete projects, and held over 11,000 training workshops in China for over 260,000 personnel from other developing countries. Since it launched reform and opening-up, China has attracted over $1.7 trillion of foreign investment and made over $1.2 trillion of direct outbound investment, making huge contribution to global economic development. In the years following the outbreak of the international financial crisis, China contributed to over 30 percent of global growth every year on average. All these figures are among the highest in the world. The figures speak for themselves. China’s development is an opportunity for the world; China has not only benefited from economic globalization but also contributed to it. Rapid growth in China has been a sustained, powerful engine for global economic stability and expansion. The inter-connected development of China and a large number of other countries has made the world economy more balanced. China’s remarkable achievement in poverty reduction has contributed to more inclusive global growth. And China’s continuous progress in reform and opening-up has lent much momentum to an open world economy.
  • Despite a sluggish global economy, China’s economy is expected to grow by 6.7 percent in 2016, still one of the highest in the world. China’s economy is far bigger in size than in the past, and it now generates more output than it did with double-digit growth in the past. Household consumption and the services sector have become the main drivers of growth. In the first three quarters of 2016, added value of the tertiary industry took up 52.8 percent of the GDP and domestic consumption contributed to 71 percent of economic growth. Household income and employment have steadily risen, while per unit GDP energy consumption continues to drop. Our efforts to pursue green development are paying off. The Chinese economy faces downward pressure and many difficulties, including acute mismatch between excess capacity and an upgrading demand structure, lack of internal driving force for growth, accumulation of financial risks, and growing challenges in certain regions. We see these as temporary hardships that occur on the way forward. And the measures we have taken to address these problems are producing good results. We are firm in our resolve to forge ahead. China is the world’s largest developing country with over 1.3 billion people, and their living standards are not yet high. But this reality also means China has enormous potential and space for development. Guided by the vision of innovative, coordinated, green, open and shared development, we will adapt to the new normal, stay ahead of the curve, and make coordinated efforts to maintain steady growth, accelerate reform, adjust economic structure, improve people’s living standards and fend off risks. With these efforts, we aim to achieve medium-high rate of growth and upgrade the economy to higher end of the value chain.
  • — China will foster an enabling and orderly environment for investment. We will expand market access for foreign investors, build high-standard pilot free trade zones, strengthen protection of property rights, and level the playing field to make China’s market more transparent and better regulated. In the coming five years, China is expected to import $8 trillion of goods, attract $600 billion of foreign investment and make $750 billion of outbound investment. Chinese tourists will make 700 million overseas visits. All this will create a bigger market, more capital, more products and more business opportunities for other countries. China’s development will continue to offer opportunities to business communities in other countries. China will keep its door wide open and not close it. An open door allows both other countries to access the Chinese market and China itself to integrate with the world. And we hope that other countries will also keep their door open to Chinese investors and keep the playing field level for us.
  • — China will vigorously foster an external environment of opening-up for common development. We will advance the building of the Free Trade Area of the Asia Pacific and negotiations of the Regional Comprehensive Economic Partnership to form a global network of free trade arrangements. China stands for concluding open, transparent and win-win regional free trade arrangements and opposes forming exclusive groups that are fragmented in nature. China has no intention to boost its trade competitiveness by devaluing the RMB, still less will it launch a currency war. Over three years ago, I put forward the “Belt and Road” initiative. Since then, over 100 countries and international organizations have given warm responses and support to the initiative. More than 40 countries and international organizations have signed cooperation agreements with China, and our circle of friends along the “Belt and Road” is growing bigger. Chinese companies have made over $50 billion of investment and launched a number of major projects in the countries along the routes, spurring the economic development of these countries and creating many local jobs. The “Belt and Road” initiative originated in China, but it has delivered benefits well beyond its borders.
  • Ladies and Gentlemen,Dear Friends, World history shows that the road of human civilization has never been a smooth one, and that mankind has made progress by surmounting difficulties. No difficulty, however daunting, will stop mankind from advancing. When encountering difficulties, we should not complain about ourselves, blame others, lose confidence or run away from responsibilities. We should join hands and rise to the challenge. History is created by the brave. Let us boost confidence, take actions and march arm-in-arm toward a bright future.
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    Very important speech. A must-read (I snipped only portions).
Gary Edwards

GAP Daily Whistleblower News - 1 views

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    The GAP Newsletter highlights different articles concerning Whistleblowers in the news. Good stuff!
Paul Merrell

The Most Important Surveillance Order We Know Almost Nothing About | American Civil Lib... - 0 views

  • Over the last seven months, we have learned an incredible amount about the government's post-9/11 surveillance efforts. But there is a crucial gap in our basic understanding. We now know, for example, a good deal about how the government conducts surveillance that targets Americans, and about surveillance of foreigners that sweeps up Americans' international communications when the actual surveillance takes place on U.S. soil (for example, from a Google facility in the United States). But we still know very little about Executive Order 12,333, which governs the NSA's surveillance abroad — even when that surveillance sweeps up Americans' communications. To fill that gap, the ACLU, along with the Media Freedom and Information Access Clinic at Yale Law School, today filed a Freedom of Information Act lawsuit demanding that the government release basic information about its use of Executive Order 12,333 to conduct surveillance of Americans' international communications. Why is Executive Order 12,333 so important? Here is how we explained it in our complaint (filed today in federal court in New York):
  • Although EO 12,333 permits the government to target foreigners abroad for surveillance, recent revelations have confirmed that the government interprets that authority to permit sweeping monitoring of Americans' international communications. How the government conducts this surveillance, and whether it appropriately accommodates the constitutional rights of American citizens and residents whose communications are intercepted in the course of that surveillance, are matters of great public significance and concern. While the government has released several documents describing the rules that govern its collection and use of Americans' international communications under statutory authorities regulating surveillance on U.S. soil, little information is publicly available regarding the rules that apply to surveillance of Americans' international calls and emails under EO 12,333. That gap in public knowledge is particularly troubling in light of recent revelations, which make clear that the NSA is collecting vast quantities of data worldwide pursuant to EO 12,333. For instance, recent news reports indicate that, relying on the executive order, the NSA is collecting: nearly 5 billion records per day on the location of cell phones, including Americans' cell phones; hundreds of millions of contact lists or address books from personal email and instant messaging accounts; and information from Google and Yahoo user accounts as that information travels between those companies' data centers located abroad.
  • The core of the problem is that the NSA has, for years, relied upon its authority to gather foreign intelligence as permission to conduct sweeping surveillance of Americans' international communications. We know that this happens under the laws that govern surveillance on U.S. soil, and recent revelations confirm that it happens — perhaps to an even greater extent — in the surveillance that takes place abroad under Executive Order 12,333. Moreover, the rules that govern surveillance under the executive order are of particular concern because that surveillance is not meaningfully overseen by Congress, and it is not overseen at all by the Foreign Intelligence Surveillance Court. In other words, the executive is conducting surveillance under its own executive order without any real oversight. We now know too well that unchecked surveillance authority can lead to dangerous overreach. That's why we are fighting for the release of documents that would shed light on the internal rules that the executive has set for itself when it monitors international communications abroad — including Americans' international communications.
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    The lawsuit names as defendants the CIA, NSA, and DoD (because the Defense Intelligence Agency is under DoD). 
Paul Merrell

Harder for Americans to Rise From Lower Rungs - NYTimes.com - 0 views

  • Benjamin Franklin did it. Henry Ford did it. And American life is built on the faith that others can do it, too: rise from humble origins to economic heights. “Movin’ on up,” George Jefferson-style, is not only a sitcom song but a civil religion.
  • But many researchers have reached a conclusion that turns conventional wisdom on its head: Americans enjoy less economic mobility than their peers in Canada and much of Western Europe. The mobility gap has been widely discussed in academic circles, but a sour season of mass unemployment and street protests has moved the discussion toward center stage. Former Senator Rick Santorum of Pennsylvania, a Republican candidate for president, warned this fall that movement “up into the middle income is actually greater, the mobility in Europe, than it is in America.” National Review, a conservative thought leader, wrote that “most Western European and English-speaking nations have higher rates of mobility.” Even Representative Paul D. Ryan, a Wisconsin Republican who argues that overall mobility remains high, recently wrote that “mobility from the very bottom up” is “where the United States lags behind.”
  • Liberal commentators have long emphasized class, but the attention on the right is largely new.
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  • At least five large studies in recent years have found the United States to be less mobile than comparable nations. A project led by Markus Jantti, an economist at a Swedish university, found that 42 percent of American men raised in the bottom fifth of incomes stay there as adults. That shows a level of persistent disadvantage much higher than in Denmark (25 percent) and Britain (30 percent) — a country famous for its class constraints. Meanwhile, just 8 percent of American men at the bottom rose to the top fifth. That compares with 12 percent of the British and 14 percent of the Danes.
  • Despite frequent references to the United States as a classless society, about 62 percent of Americans (male and female) raised in the top fifth of incomes stay in the top two-fifths, according to research by the Economic Mobility Project of the Pew Charitable Trusts. Similarly, 65 percent born in the bottom fifth stay in the bottom two-fifths. By emphasizing the influence of family background, the studies not only challenge American identity but speak to the debate about inequality. While liberals often complain that the United States has unusually large income gaps, many conservatives have argued that the system is fair because mobility is especially high, too: everyone can climb the ladder. Now the evidence suggests that America is not only less equal, but also less mobile.
Paul Merrell

Americans' Trust in Mass Media Sinks to New Low - 0 views

  • Americans' trust and confidence in the mass media "to report the news fully, accurately and fairly" has dropped to its lowest level in Gallup polling history, with 32% saying they have a great deal or fair amount of trust in the media. This is down eight percentage points from last year.
  • Gallup began asking this question in 1972, and on a yearly basis since 1997. Over the history of the entire trend, Americans' trust and confidence hit its highest point in 1976, at 72%, in the wake of widely lauded examples of investigative journalism regarding Vietnam and the Watergate scandal. After staying in the low to mid-50s through the late 1990s and into the early years of the new century, Americans' trust in the media has fallen slowly and steadily. It has consistently been below a majority level since 2007.
  • Democrats' and independents' trust in the media has declined only marginally, with 51% of Democrats (compared with 55% last year) and 30% of independents (versus 33% last year) expressing trust. Over the past 20 years, Democrats have generally expressed more trust than Republicans in the media, although in 2000, the two parties were most closely aligned, with 53% of Democrats and 47% of Republicans professing trust.
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  • While it is clear Americans' trust in the media has been eroding over time, the election campaign may be the reason that it has fallen so sharply this year. With many Republican leaders and conservative pundits saying Hillary Clinton has received overly positive media attention, while Donald Trump has been receiving unfair or negative attention, this may be the prime reason their relatively low trust in the media has evaporated even more. It is also possible that Republicans think less of the media as a result of Trump's sharp criticisms of the press. Republicans who say they have trust in the media has plummeted to 14% from 32% a year ago. This is easily the lowest confidence among Republicans in 20 years.
  • Older Americans are more likely than younger Americans to say they trust the media, but trust has declined among both age groups this year. Currently, 26% of those aged 18 to 49 (down from 36% last year) and 38% of those aged 50 and older (down from 45%) say they have a great deal or fair amount of trust in the media.
  • In 2001, younger Americans (55%) were more likely than older Americans (50%) to express trust and confidence in mass media. This gap emerged again in 2005 when 53% of 18- to 49-year-olds had trust and 45% of those 50 and older expressed the same sentiment. Yet in the past decade, older Americans have mostly had more confidence than younger Americans, and this year, the gap between these age groups is 12 points. And 2016 marks the first time that confidence among older Americans has dropped below 40% in polling since 2001.
  • The divisive presidential election this year may be corroding Americans' trust and confidence in the media, particularly among Republicans who may believe the "mainstream media" are too hyperfocused on every controversial statement or policy proposal from Trump while devoting far less attention to controversies surrounding the Clinton campaign. However, the slide in media trust has been happening for the past decade. Before 2004, it was common for a majority of Americans to profess at least some trust in the mass media, but since then, less than half of Americans feel that way. Now, only about a third of the U.S. has any trust in the Fourth Estate, a stunning development for an institution designed to inform the public. With the explosion of the mass media in recent years, especially the prevalence of blogs, vlogs and social media, perhaps Americans decry lower standards for journalism. When opinion-driven writing becomes something like the norm, Americans may be wary of placing trust on the work of media institutions that have less rigorous reporting criteria than in the past. On the other hand, as blogs and social media "mature," they may improve in the American public's eyes. This could, in turn, elevate Americans' trust and confidence in the mass media as a whole.
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    Personally, I suspect the fact that mainstream media's journalism standards have dropped as MSM ownership has been consolidated into 6 giant corporations might have far more to do with the decline. So declined too has been the relevance of editorial focus. In other words, MSM has only itself to blame for the public's loss of confidence. Fortunately, we've seen the rise of independent investigative journalism via the internet. Alternative media now offers far richer sources of information than MSM, once you learn to filter unreliable sources.
Paul Merrell

Presidential poll: Donald Trump pulls ahead of Hillary Clinton - CNN.com - 0 views

  • Donald Trump and Hillary Clinton start the race to November 8 on essentially even ground, with Trump edging Clinton by a scant two points among likely voters, and the contest sparking sharp divisions along demographic lines in a new CNN/ORC Poll.Trump tops Clinton 45% to 43% in the new survey, with Libertarian Gary Johnson standing at 7% among likely voters in this poll and the Green Party's Jill Stein at just 2%.
  • The topsy-turvy campaign for the presidency has seen both Clinton and Trump holding a significant lead at some point in the last two months, though Clinton has topped Trump more often than not. Most recently, Clinton's convention propelled her to an 8-point lead among registered voters in an early-August CNN/ORC Poll. Clinton's lead has largely evaporated despite a challenging month for Trump, which saw an overhaul of his campaign staff, announcements of support for Clinton from several high-profile Republicans and criticism of his campaign strategy. But most voters say they still expect to see Clinton prevail in November, and 59% think she will be the one to get to 270 electoral votes vs. 34% who think Trump has the better shot at winning.
  • Neither major third party candidate appears to be making the gains necessary to reach the 15% threshold set by the Commission on Presidential Debates, with just three weeks to go before the first debate on September 26.The new poll finds the two major party candidates provoke large gaps by gender, age, race, education and partisanship. Among those likely to turn out in the fall, both candidates have secured about the same share of their own partisans (92% of Democrats back Clinton, 90% of Republicans are behind Trump) but independents give Trump an edge, 49% say they'd vote for him while just 29% of independent voters back Clinton. Another 16% back Johnson, 6% Stein.
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  • Women break for Clinton (53% to 38%) while men shift Trump's way (54% to 32%). Among women, those who are unmarried make up the core of her support, 73% of unmarried women back Clinton compared with just 36% of married women. Among men, no such marriage gap emerges, as both unmarried and married men favor Trump.Younger voters are in Clinton's corner (54% to 29% among those under age 45) while the older ones are more apt to back Trump (54% to 39% among those age 45 or older). Whites mostly support Trump (55% to 34%), while non-whites favor Clinton by a nearly 4-to-1 margin (71% to 18%). Most college grads back Clinton while those without degrees mostly support Trump, and that divide deepens among white voters. Whites who do not hold college degrees support Trump by an almost 3-to-1 margin (68% to 24%) while whites who do have college degrees split 49% for Clinton to 36% for Trump and 11% for Johnson.
  • Support for Johnson seems to be concentrated among groups where Clinton could stand to benefit from consolidating voters. Although direct comparison between the poll's two-way, head-to-head matchup and its four-way matchup doesn't suggest that Johnson is pulling disproportionately from either candidate, his supporters come mostly among groups where a strong third-party bid could harm Clinton's standing: Younger voters (particularly younger men), whites with college degrees, and independents, notably.
  • The poll follows several national polls in August suggesting that the margin between the two candidates had tightened following the conventions. A CNN Poll of Polls analysis released Friday showed that Clinton's lead had been cut in half when compared with the height of her convention bounce.Speaking to reporters aboard her campaign plane Tuesday, Clinton shrugged off a question about the CNN/ORC survey."I really pay no attention to polls. When they are good for me -- and there have been a lot of them that have been good for me recently -- I don't pay attention," Clinton said. "When they are not so good, I don't pay attention. We are on a course that we are sticking with."While enthusiasm for the campaign has continued to inch up, it remains well off the mark compared with this point in other recent presidential election years. In the new poll, 46% say they are extremely or very enthusiastic, compared with 57% at this point in 2012, 60% in early September of 2008 and 64% in September 2004.Further, nearly half of voters say they are less enthusiastic about voting in this election than they have been in previous years, while just 42% say they're more excited about this year's contest. Although this question hasn't been asked in every presidential election year, in CNN/ORC and CNN/USA Today/Gallup results dating back to 2000, this poll marks the first time that a significantly larger share of voters say they are less enthusiastic about this year's election. The lack of enthusiasm spikes among Clinton supporters. A majority of Clinton's supporters say they're less excited about voting this year than usual (55%) while most of Trump's backers say they're more excited this time around (56%).
Paul Merrell

Economic Recovery Is Mostly A Myth For The 99 Percent - 0 views

  • So, the rich have genuinely and thoroughly recovered from the crash of 2008. But what about everyone else? * 93 percent of U.S. counties haven’t recovered from the Great Recession according to the National Association of Counties. * According to Pew, the middle class is now no longer the majority in America. * The “recovery gap” has more than 50 million Americans living in economically distressed regions plagued by high levels of unemployment, poverty and fiscal anxiety. * Nearly 95 percent of all new jobs under President Barack Obama were part-time, or contract, which pay less and are precarious. * Due to unprecedented and often illegal home foreclosures by banks, the wealth gap between whites and blacks grew during the era of Obama. * 63 percent of Americans do not have enough savings to cover an unforeseen $500 bill. The only serious counterargument to this narrative is to note many of these trends preceded the Great Recession. That is sadly true. Workers have seen stagnant wages for decades and a decreasing share of income and wealth. As the Institute for Policy Studies notes, between 1983 and 2009, over 40 percent of all wealth gains flowed to the 1 percent and 82 percent of wealth gains went to the top 5 percent. President Obama said in 2013 that economic inequality was “the defining issue of our time.” If so, Obama largely failed to do anything meaningful to address this issue.
Paul Merrell

Clinton's Imperious Brush-off of Email Rules - Consortiumnews - 0 views

  • The State Department’s Inspector General issued a blunt report criticizing Hillary Clinton’s imperious refusal to follow email rules as Secretary of State, adding to Clinton’s credibility problem, notes ex-CIA analyst Ray McGovern.
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    Meanwhile, the latest poll out of California shows Clinton support continuing to drop while Sanders support continues to rise. Once behind in California by 50 points, Sanders has closed the gap to 2 points. If Sanders takes delegate-rich California, the Democratic nominating convention will be a wide-open brawl. 
Gary Edwards

Byron York: Justice Department demolishes case against Trump order | Washington Examiner - 1 views

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    "James Robart, the U.S. district judge in Washington State, offered little explanation for his decision to stop President Trump's executive order temporarily suspending non-American entry from seven terror-plagued countries. Robart simply declared his belief that Washington State, which in its lawsuit against Trump argued that the order is both illegal and unconstitutional, would likely win the case when it is tried. Now the government has answered Robart, and unlike the judge, Justice Department lawyers have produced a point-by-point demolition of Washington State's claims. Indeed, for all except the most partisan, it is likely impossible to read the Washington State lawsuit, plus Robart's brief comments and writing on the matter, plus the Justice Department's response, and not come away with the conclusion that the Trump order is on sound legal and constitutional ground. Beginning with the big picture, the Justice Department argued that Robart's restraining order violates the separation of powers, encroaches on the president's constitutional and legal authority in the areas of foreign affairs, national security, and immigration, and "second-guesses the president's national security judgment" about risks faced by the United States. Indeed, in court last week, Robart suggested that he, Robart, knows as much, or perhaps more, than the president about the current state of the terrorist threat in Yemen, Somalia, Libya, and other violence-plagued countries. In an exchange with Justice Department lawyer Michelle Bennett, Robart asked, "How many arrests have there been of foreign nationals for those seven countries since 9/11?" "Your Honor, I don't have that information," said Bennett. "Let me tell you," said Robart. "The answer to that is none, as best I can tell. So, I mean, you're here arguing on behalf of someone [President Trump] that says: We have to protect the United States from these individuals coming from these countries, and there's no support for that."
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