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Paul Merrell

PRISM: Google and Facebook DID allow NSA access to data and were in talks to set up 'sp... - 0 views

  • Mark Zuckerberg and Larry Page both issued blustery statements over recent media reports they gave the National Security Agency officials access to their troves of user informationNow sources say both tech giants were in discussion about specific ways to give U.S. officials access to their data using virtual classified information reading roomsCompanies are all compelled by the Foreign Intelligence Surveillance Act to hand over any information requested under the law, but they're not required to make access easier
  • PRISM data-mining program was launched in 2007 with approval from special federal judgesApple, Facebook, Microsoft, Google, Yahoo, YouTube, Skype, AOL and PalTalk are involved in spying program The UK has had access to the PRISM data since at least 2010Details of data collection were outlined in classified 41-slide PowerPoint presentation that was leaked by intelligence officer 
  • Mark Zuckerberg of Facebook and Larry Page of Google both strongly denied giving unfettered access to user data to U.S. officials, but it turns out both companies have, in fact, cooperated with governments requests.Zuckerberg denied his company's link to secret government data-sharing scheme PRISM on Friday in a blustery posted message that described allegations that Facebook gave 'US or any other government direct access to our servers' as 'outrageous.'Now, sources tell the New York Times that both Facebook and Google discussed plans to create secure portals for the government 'like a digital version of the secure physical rooms that have long existed for classified information' with U.S. officials.
Paul Merrell

ACLU Demands Secret Court Hand Over Crucial Rulings On Surveillance Law - 0 views

  • The American Civil Liberties Union (ACLU) has filed a motion to reveal the secret court opinions with “novel or significant interpretations” of surveillance law, in a renewed push for government transparency. The motion, filed Wednesday by the ACLU and Yale Law School’s Media Freedom and Information Access Clinic, asks the Foreign Intelligence Surveillance Act (FISA) Court, which rules on intelligence gathering activities in secret, to release 23 classified decisions it made between 9/11 and the passage of the USA Freedom Act in June 2015. As ACLU National Security Project staff attorney Patrick Toomey explains, the opinions are part of a “much larger collection of hidden rulings on all sorts of government surveillance activities that affect the privacy rights of Americans.” Among them is the court order that the government used to direct Yahoo to secretly scanits users’ emails for “a specific set of characters.” Toomey writes: These court rulings are essential for the public to understand how federal laws are being construed and implemented. They also show how constitutional protections for personal privacy and expressive activities are being enforced by the courts. In other words, access to these opinions is necessary for the public to properly oversee their government.
  • Although the USA Freedom Act requires the release of novel FISA court opinions on surveillance law, the government maintains that the rule does not apply retroactively—thereby protecting the panel from publishing many of its post-9/11 opinions, which helped create an “unprecedented buildup” of secret surveillance laws. Even after National Security Agency (NSA) whistleblower Edward Snowden revealed the scope of mass surveillance in 2013, sparking widespread outcry, dozens of rulings on spying operations remain hidden from the public eye, which stymies efforts to keep the government accountable, civil liberties advocates say. “These rulings are necessary to inform the public about the scope of the government’s surveillance powers today,” the ACLU’s motion states.
  • Toomey writes that the rulings helped influence a number of novel spying activities, including: The government’s use of malware, which it calls “Network Investigative Techniques” The government’s efforts to compel technology companies to weaken or circumvent their own encryption protocols The government’s efforts to compel technology companies to disclose their source code so that it can identify vulnerabilities The government’s use of “cybersignatures” to search through internet communications for evidence of computer intrusions The government’s use of stingray cell-phone tracking devices under the Foreign Intelligence Surveillance Act (FISA) The government’s warrantless surveillance of Americans under FISA Section 702—a controversial authority scheduled to expire in December 2017 The bulk collection of financial records by the CIA and FBI under Section 215 of the Patriot Act Without these rulings being made public, “it simply isn’t possible to understand the government’s claimed authority to conduct surveillance,” Toomey writes. As he told The Intercept on Wednesday, “The people of this country can’t hold the government accountable for its surveillance activities unless they know what our laws allow. These secret court opinions define the limits of the government’s spying powers. Their disclosure is essential for meaningful public oversight in our democracy.”
Paul Merrell

Half of Federal Agencies Still Use Outdated Freedom of Information Regulations - 0 views

  • Nearly half (50 out of 101) of all federal agencies have still not updated their Freedom of Information Act regulations to comply with Congress's 2007 FOIA amendments, and even more agencies (55 of 101) have FOIA regulations that predate and ignore President Obama's and Attorney General Holder's 2009 guidance for a "presumption of disclosure," according to the new National Security Archive FOIA Audit released today to mark Sunshine Week. Congress amended the Freedom of Information Act in 2007 to prohibit agencies from charging processing fees if they missed their response deadlines, to include new online journalists in the fee waiver category for the media, to order agencies to cooperate with the new FOIA ombudsman (the Office of Government Information Services, OGIS), and to require reports of specific data on their FOIA output, among other provisions co-authored by Senators Patrick Leahy (D-VT) and John Cornyn (R-TX). But half the government has yet to incorporate these changes in their regulations, according to the latest National Security Archive FOIA Audit. After President Obama's "Day One" commitments to open government, Attorney General Eric Holder issued new FOIA guidance on March 19, 2009, declaring that agencies should adopt a "presumption of disclosure," encourage discretionary releases if there was no foreseeable harm (even if technically covered by an exemption), proactively post the records of greatest public interest online, and remove "unnecessary bureaucratic hurdles" from the FOIA process. But five years later, the Archive found a majority of agencies have old regulations that simply ignore this guidance.
  • The Archive's FOIA Audit also highlights some good news this Sunshine Week: New plans from both the House of Representatives and White House have the potential to compel delinquent agencies to update their regulations. "Both Congress and the White House now recognize the problem of outdated FOIA regulations, and that is something to celebrate," said Archive director Tom Blanton. "But new regs should not follow the Justice Department's terrible lead, they must follow the best practices already identified by the FOIA ombuds office and FOIA experts." "If and when this important FOIA reform occurs, open government watchdogs must be vigilant to ensure that the agencies' updated regulations are progressive, rather than regressive, and embrace best practices to ensure that more documents are released to requesters, more quickly" said Nate Jones, the Archive's FOIA coordinator.
  • In 2011, the back-to-back Rosemary Award-winning Department of Justice proposed FOIA regulations that would have — among many other FOIA setbacks — allowed the Department to lie to FOIA requesters, eliminated online-only publications from receiving media fee status, and made it easier to destroy records. After intense pushback by openness advocates, the DOJ temporarily pulled these regulations, and Pustay claimed, "some people misinterpreted what we were trying to do, misconstrued some of the provisions, and didn't necessarily understand some of the fee guidelines." Pustay also claimed — to an incredulous Senate Judiciary Committee — that updating FOIA regulations to conform with the 2007 OPEN Government Act was merely optional and "not required." National Security Archive director Tom Blanton warned in his own 2013 Senate testimony that these terrible "vampire" regulations were not gone for good. This year, Pustay testified that the Department of Justice has indeed resubmitted its FOIA regulations for OMB approval; their content is unknown to the public.
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  • The House of Representatives recently unanimously passed the bipartisan Freedom of Information Act Implementation Act (H.R. 1211), which includes a provision compelling agencies to update their FOIA regulations. The House bill — which now awaits Senate approval — would require each agency to update its FOIA regulations "not later than 180 days after the enactment of this Act." The White House is also addressing the problem of outdated FOIA regulations, albeit in a different manner. In its latest Open Government Partnership National Action Plan, the White House has committed (on paper, at least) to creating one "core FOIA regulation and common set of practices [that] would make it easier for requesters to understand and navigate the FOIA process and easier for the Government to keep regulations up to date." Transparency watchdogs went on alert this week after the Department of Justice's Director of Information Policy Melanie Pustay announced during her Senate testimony on March 11, 2014 that, "My office is leading that project" to create the White House-backed common regulation which, she estimated will be, "a one or two year project." Despite Pustay's pledge that she would accept input from OGIS and the requester community, her Department's history of crafting FOIA regulations has been anything but stellar.
  • As the Department of Justice and other agencies have demonstrated, new regulations do not necessarily make good regulations. As such, the National Security Archive has recommended that any updated FOIA regulations must: mandate that FOIA officers embrace direct communications with requesters; require agencies to receive requests by e-mail and post all responses and documents online; direct agencies to update their FOIA processing software so documents can be posted to any online repository, including the government-sponsored FOIAonline; encourage agencies to join FOIAonline to make their FOIA processing more cost-effective and efficient; stream-line inter and intra-agency "referral" black holes — and keep requesters abreast of where their requests are if the agency does have to refer them; include language encouraging use of the OGIS, which can help requesters and agencies mediate disputes to avoid animosity and costly litigation; end the practice of using fees to discourage FOIA requesters. The Office of Government Information Services — which reviews and comments on agency regulations as they are proposed — has also compiled a list of best practices for agencies to consider while crafting regulations. These include: "let the Freedom of Information Act itself" — and its presumption for disclosure — "be your guide;" bring attorneys, FOIA processors, records managers and IT pros to the table; include your plan for records management and preservation; and alert requesters of their option to contact OGIS for mediation and dispute resolution services.
  • A useful compilation of current agency FOIA regulation language — already on the books — put together by the Center of Effective Government also includes helpful guidelines on preventing the destruction of requested records; narrowly interpreting claims of confidential business information; and clarifying fee waivers and procedures. FOIA experts are currently working to craft model, pro-transparency, CFR-ready language that agencies — or the drafters of government-wide common regulations — can use to bring agencies' Freedom of Information Act regulations up to standard. Watch this space, and then watch the Code of Federal Regulations (CFR). "As the staffer who waded through every single federal agencies' FOIA website and CFR chapter to locate their — sometimes hidden — regulations, I learned FOIA officials often say they view their FOIA requesters as customers," said Archive researcher Lauren Harper, "I think easy to find, updated model FOIA regulations are the best way for agencies to demonstrate they truly value their customer service, and the spirit of the FOIA."
  • The National Security Archive has conducted thirteen FOIA audits since 2002. Modeled after the California Sunshine Survey and subsequent state "FOI Audits," the Archive's FOIA Audits use open-government laws to test whether or not agencies are obeying those same laws. Recommendations from previous Archive FOIA Audits have led directly to laws and executive orders which have: set explicit customer service guidelines, mandated FOIA backlog reduction, assigned individualized FOIA tracking numbers, forced agencies to report the average number of days needed to process requests, and revealed the (often embarrassing) ages of the oldest pending FOIA requests. The surveys include:
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    Article includes tables indicating which agencies are out of compliance with which FOIA directives. 
Paul Merrell

Washington's Blog - Business, Investing, Economy, Politics, World News, Energy, Environ... - 0 views

  • A poll released today shows that Americans across the political spectrum hate the Patriot Act and NSA spying. The bipartisan polling team – made up of Global Strategy Group and G Public Strategies – found (edited for readability): By nearly a 2:1 margin (60% modify, 34% preserve), Americans believe the Patriot Act should not be reauthorized in its current form. With broad, bipartisan support across all ages, ideologies and political parties, voters are rejecting the argument that the Patriot Act should be preserved with no changes because of potential terrorist threats. Millennials (65% modify) and Independent men (75% modify), in particular, are driving the push for modification to limit government surveillance. By more than 4:1 (82% concerned, 18% not concerned), voters find it concerning that the United States government is collecting and storing the personal information of Americans, including 31% who are extremely concerned and 25% who are very concerned.
  • Over three quarters of voters found four different examples of government spying personally concerning to them. The government accessing personal communications, information or records without a judge’s permission (83%) and using that information for things other than stopping terrorist attacks (83%) were the two most concerning examples to voters. Specific arguments made in favor of adding more protections for Americans around privacy, also proved to be convincing to voters. 84% of voters said it was a convincing argument that local police and the FBI should have a warrant to search phone and email records, further confirming that Americans believe that individual privacy rights should be more strongly protected. Additionally, 81% of voters were convinced more protections were needed on account of companies providing loopholes in their services to make surveillance easier for the government.
  • This jibes with previous polls showing that Americans: Value privacy over anti-terror protections Don’t believe the NSA And are now more afraid of our own government than terrorists
Paul Merrell

Lawfare › The NSA Documents: The Entire Series - 0 views

  • Our series on the NSA documents now being complete, I thought I would collect all of the posts together in one place. Here are the documents themselves. And here are our seven posts commenting on them: The Introduction Summary of the October 2011 FISC Opinion Summary of the November 2011 FISC Opinion Summary of the September 2012 FISC Opinion Summary of Statements to Congress Summary of the Minimization Procedures Summary of the Semi-Annual Compliance Report Now that the series is done, I will turn to the question of
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    Someone had the sense and time to collect them all. The linked site has many NSA/privacy research resources 
Paul Merrell

Transatlantic Trade and Investment Partnership (TTIP) Negotiations Fall Apart Following... - 0 views

  • Back in January the EU Commission published their response to the consultation on TTIP and it was found that 97% of the 150,000 responses opposed the trade deal. These respondents represented the general public. The biggest petition in the EU’s history was then presented that contained the signatures of 2 million citizens (now nearly 3 million) opposed to TTIP. Both were rejected as were proposals even for a simple hearing of the European Citizens Initiative. Then in April this year, thousands of protestors took to the streets of cities all over Europe as unelected officials of the EU Commission continue to ignore the concerns of its citizens. In June, fellow MEPs from many political parties who are also opposed to TTIP joined Ukip in standing, shouting, booing and clapping to show their dissatisfaction with proceedings. MEPs were due to set out their first formal position on TTIP since negotiations started two years ago and the meeting descended into chaos (video). The meeting was then stopped by the commissioners. Meanwhile David Cameron has persistently attempted to call out those working to derail the deal. Cameron has accused critics of inventing false scare stories whilst urging business chiefs to help make the case to overcome sustained attacks from left-wing opponents and warned Britain would “rue the day if we miss this opportunity” to open up transatlantic markets.
  • Cameron, who (increasingly) seldom listens to the general public or elected members of parliament representing the electorate will no doubt use all his powers to get this deal though to redeem himself after being called incompetent by his own military generals and by the Obama administration over Syria. In sharp comparison, both Paris and Berlin want the Investor State Dispute Settlement mechanism (ISDS) of TTIP removed from the transatlantic trade treaty currently being negotiated with Washington. This is a game changer. Matthias Fekl, the French Secretary of State for Foreign Trade, told EurActiv France that he would “never allow private tribunals in the pay of multinational companies to dictate the policies of sovereign states, particularly in certain domains like health and the environment”. That was back in January. Nine months later and France has now reinforced that message and gone one big step forward. In an interview with Sud-Ouest, Matthias Fekl threatened to “call a complete halt” to the TTIP negotiations if things do not change. EurActiv France reports. America has shown no desire to change any of the major issues that have been challenged. Fekl told the French newspaper that he believes the “total lack of transparency” in the Transatlantic Trade and Investment Partnership (TTIP) negotiations poses a “democratic problem”.
  • Fekl, the Minister of State for Foreign Trade called on the United States to show “reciprocity” in the negotiations. “American members of parliament have access to a much higher number of documents than we do in Europe,” he said. The German people are now taking a stand and now it is being reported in the USA that sentiment is going against the deal – “It is entirely possible that the U.S. could seek to conclude the deal in the next few years only to find that European governments are unwilling to risk the ire of their voters”. Matthias Fekl, explained that, ever since the negotiations began in 2013, “These negotiations have been and are being conducted in a total lack of transparency,” and that France has, as of yet, received “no serious offer from the Americans.” The reasons for this stunning public rejection had probably already been accurately listed more than a year ago. Jean Arthuis, a member of the European Parliament, and formerly France’s Minister of Economy and Finance, headlined in Le Figaro, on 10 April 2014, “7 good reasons to oppose the transatlantic treaty”. There is no indication that the situation has changed since then, as regards the basic demands that President Obama is making. Arthuis said at that time, that he was opposed to;
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  • Private arbitration of disputes between States and businesses. Such a procedure is strictly contrary to the idea that I have of the      sovereignty of States. … Any questioning of the European system of appellations of origin. According to the US proposal, there would be a non-binding register, and only for wines and spirits. Such a reform would kill many European local products, whose value is based on their certified origin. Signing of an agreement with a power that legalizes widespread and systematic spying on my fellow European citizens and European businesses. As long as the agreement does not protect the personal data of European and US citizens, it cannot be signed. Allowing the United States proposal of a transatlantic common financial space, who adamantly refuse a common regulation of finance, and they refuse to abolish systematic discrimination by the US financial markets against European financial services. The questioning of European health protections. We do not want our animals treated with growth hormones nor products derived from GMOs, or chemical decontamination of meat, or of genetically modified seeds or non-therapeutic antibiotics in animal feed.
  • The signing of an agreement if it does not include the end of the US monetary dumping. Since the abolition of the gold convertibility of the dollar and the transition to the system of floating exchange rates, the dollar is both American national currency and the main unit for exchange reserves in the world. The Federal Reserve then continually practices monetary dumping, by influencing the amount of dollars available to facilitate exports from the United States. As things now stand, America’s monetary weapon has the same effect as customs duties against every other nation. [And he will not sign unless it’s removed.] Allow the emerging digital services in Europe to be swept up by US giants such as Google, Amazon or Netflix. They’re giant absolute masters in tax optimization, which make Europe a “digital colony.”
  • France is now considering “all options including an outright termination of negotiations” says France’s Trade Minister.
Paul Merrell

Multiple Polls: Americans Are More Afraid of the GOVERNMENT than TERRORISTS Washington'... - 0 views

  • According to a pair of recent polls, for the first time since the 9/11 terrorist hijackings, Americans are more fearful their government will abuse constitutional liberties than fail to keep its citizens safe. Even in the wake of the April 15 Boston Marathon bombing – in which a pair of Islamic radicals are accused of planting explosives that took the lives of 3 and wounded over 280 – the polls suggest Americans are hesitant to give up any further freedoms in exchange for increased “security.” A Fox News survey polling a random national sample of 619 registered voters the day after the bombing found despite the tragic event, those interviewed responded very differently than following 9/11. For the first time since a similar question was asked in May 2001, more Americans answered “no” to the question, “Would you be willing to give up some of your personal freedom in order to reduce the threat of terrorism?”
  • Of those surveyed on April 16, 2013, 45 percent answered no to the question, compared to 43 percent answering yes. In May 2001, before 9/11, the balance was similar, with 40 percent answering no to 33 percent answering yes. But following the terrorist attacks of 9/11, the numbers flipped dramatically, to 71 percent agreeing to sacrifice personal freedom to reduce the threat of terrorism. Subsequent polls asking the same question in 2002, 2005 and 2006 found Americans consistently willing to give up freedom in exchange for security. Yet the numbers were declining from 71 percent following 9/11 to only 54 percent by May 2006. Now, it would seem, the famous quote widely attributed to Benjamin Franklin – “They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety” – is holding more sway with Americans than it has in over a dozen years.
  • A similar poll sampling 588 adults, conducted on April 17 and 18 for the Washington Post, also discovered the change in attitude. “Which worries you more,” the Post asked, “that the government will not go far enough to investigate terrorism because of concerns about constitutional rights, or that it will go too far in compromising constitutional rights in order to investigate terrorism?” The poll found 48 percent of respondents worry the government will go too far, compared to 41 percent who worry it won’t go far enough. And similar to the Fox News poll, the Post found the worry to be a fresh development, as only 44 percent worried the government would go too far in January 2006 and only 27 percent worried the government would go too far in January 2010.
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  • The Fox News poll found that a bare majority of Democrats (51%) would give up more personal freedom to reduce the threat of terror, while only 47% of Republicans – and a mere 29% of independents – would do so. This is not entirely surprising. As we noted in February: For years, “conservative” pollsters have said that Americans are furious at the government: Rasmussen noted in 2010 that only a small minority of the American people think that the government has the consent of the governed, and that the sentiment was “pre-revolutionary” Gallup noted in 2011 that a higher percentage of American liked King George during the colonial days than currently like Congress
  • And last year, Gallup noted that trust was plummeting in virtually all institutions Liberals may be tempted to think that this is a slanted perspective. But non-partisan and liberal pollsters are saying the same thing: An NBC News/Wall Street Journal poll from 2011 found that 76% of Americans believe that the country’s current financial and political structures favor the rich over the rest of the country The Washington Post reported in 2011 that Congress was less popular than communism, BP during the Gulf oil spill or Nixon during Watergate
  • Public Policy Polling added last month that Congress is also less popular than cockroaches, lice, root canals, colonoscopies, traffic jams, used car salesman and Genghis Khan And the liberal Pew Charitable Trusts noted last week that – for the first time – a majority of the public says that the federal government threatens their personal rights and freedoms: The latest national survey by the Pew Research Center for the People & the Press, conducted Jan. 9-13 among 1,502 adults, finds that 53% think that the federal government threatens their own personal rights and freedoms while 43% disagree. In March 2010, opinions were divided over whether the government represented a threat to personal freedom; 47% said it did while 50% disagreed. In surveys between 1995 and 2003, majorities rejected the idea that the government threatened people’s rights and freedoms.
  • *** The survey finds continued widespread distrust in government. About a quarter of Americans (26%) trust the government in Washington to do the right thing just about always or most of the time; 73% say they can trust the government only some of the time or volunteer that they can never trust the government. *** Majorities across all partisan and demographic groups express little or no trust in government. Obviously, Democrats are currently more trusting in government than Republicans. For example: The Pew Research Center’s 2010 study of attitudes toward government found that, since the 1950s, the party in control of the White House has expressed more trust in government than the so-called “out party.”
  • But given that even a growing percentage of Dems believe that government is a threat to their freedom, things are indeed getting interesting … It doesn’t help that the government claims the power to assassinate American citizens living on U.S. soil, indefinitely detain Americans without trial, spy on everyone and otherwise intrude into every aspect of our lives. Postscript: What are the actual risks coming from government versus terrorism?  That’s an interesting question.
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    From 2013, not long after the Boston Bombing. I never had much respect for those willing to surrender my liberties so they could feel a bit more secure. "Security is mostly a superstition. It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure, or nothing." Helen Keller, The Open Door (1957).
Paul Merrell

Popular Security Software Came Under Relentless NSA and GCHQ Attacks - The Intercept - 0 views

  • The National Security Agency and its British counterpart, Government Communications Headquarters, have worked to subvert anti-virus and other security software in order to track users and infiltrate networks, according to documents from NSA whistleblower Edward Snowden. The spy agencies have reverse engineered software products, sometimes under questionable legal authority, and monitored web and email traffic in order to discreetly thwart anti-virus software and obtain intelligence from companies about security software and users of such software. One security software maker repeatedly singled out in the documents is Moscow-based Kaspersky Lab, which has a holding registered in the U.K., claims more than 270,000 corporate clients, and says it protects more than 400 million people with its products. British spies aimed to thwart Kaspersky software in part through a technique known as software reverse engineering, or SRE, according to a top-secret warrant renewal request. The NSA has also studied Kaspersky Lab’s software for weaknesses, obtaining sensitive customer information by monitoring communications between the software and Kaspersky servers, according to a draft top-secret report. The U.S. spy agency also appears to have examined emails inbound to security software companies flagging new viruses and vulnerabilities.
  • The efforts to compromise security software were of particular importance because such software is relied upon to defend against an array of digital threats and is typically more trusted by the operating system than other applications, running with elevated privileges that allow more vectors for surveillance and attack. Spy agencies seem to be engaged in a digital game of cat and mouse with anti-virus software companies; the U.S. and U.K. have aggressively probed for weaknesses in software deployed by the companies, which have themselves exposed sophisticated state-sponsored malware.
  • The requested warrant, provided under Section 5 of the U.K.’s 1994 Intelligence Services Act, must be renewed by a government minister every six months. The document published today is a renewal request for a warrant valid from July 7, 2008 until January 7, 2009. The request seeks authorization for GCHQ activities that “involve modifying commercially available software to enable interception, decryption and other related tasks, or ‘reverse engineering’ software.”
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  • The NSA, like GCHQ, has studied Kaspersky Lab’s software for weaknesses. In 2008, an NSA research team discovered that Kaspersky software was transmitting sensitive user information back to the company’s servers, which could easily be intercepted and employed to track users, according to a draft of a top-secret report. The information was embedded in “User-Agent” strings included in the headers of Hypertext Transfer Protocol, or HTTP, requests. Such headers are typically sent at the beginning of a web request to identify the type of software and computer issuing the request.
  • According to the draft report, NSA researchers found that the strings could be used to uniquely identify the computing devices belonging to Kaspersky customers. They determined that “Kaspersky User-Agent strings contain encoded versions of the Kaspersky serial numbers and that part of the User-Agent string can be used as a machine identifier.” They also noted that the “User-Agent” strings may contain “information about services contracted for or configurations.” Such data could be used to passively track a computer to determine if a target is running Kaspersky software and thus potentially susceptible to a particular attack without risking detection.
  • Another way the NSA targets foreign anti-virus companies appears to be to monitor their email traffic for reports of new vulnerabilities and malware. A 2010 presentation on “Project CAMBERDADA” shows the content of an email flagging a malware file, which was sent to various anti-virus companies by François Picard of the Montréal-based consulting and web hosting company NewRoma. The presentation of the email suggests that the NSA is reading such messages to discover new flaws in anti-virus software. Picard, contacted by The Intercept, was unaware his email had fallen into the hands of the NSA. He said that he regularly sends out notification of new viruses and malware to anti-virus companies, and that he likely sent the email in question to at least two dozen such outfits. He also said he never sends such notifications to government agencies. “It is strange the NSA would show an email like mine in a presentation,” he added.
  • The NSA presentation goes on to state that its signals intelligence yields about 10 new “potentially malicious files per day for malware triage.” This is a tiny fraction of the hostile software that is processed. Kaspersky says it detects 325,000 new malicious files every day, and an internal GCHQ document indicates that its own system “collect[s] around 100,000,000 malware events per day.” After obtaining the files, the NSA analysts “[c]heck Kaspersky AV to see if they continue to let any of these virus files through their Anti-Virus product.” The NSA’s Tailored Access Operations unit “can repurpose the malware,” presumably before the anti-virus software has been updated to defend against the threat.
  • The Project CAMBERDADA presentation lists 23 additional AV companies from all over the world under “More Targets!” Those companies include Check Point software, a pioneering maker of corporate firewalls based Israel, whose government is a U.S. ally. Notably omitted are the American anti-virus brands McAfee and Symantec and the British company Sophos.
  • As government spies have sought to evade anti-virus software, the anti-virus firms themselves have exposed malware created by government spies. Among them, Kaspersky appears to be the sharpest thorn in the side of government hackers. In the past few years, the company has proven to be a prolific hunter of state-sponsored malware, playing a role in the discovery and/or analysis of various pieces of malware reportedly linked to government hackers, including the superviruses Flame, which Kaspersky flagged in 2012; Gauss, also detected in 2012; Stuxnet, discovered by another company in 2010; and Regin, revealed by Symantec. In February, the Russian firm announced its biggest find yet: the “Equation Group,” an organization that has deployed espionage tools widely believed to have been created by the NSA and hidden on hard drives from leading brands, according to Kaspersky. In a report, the company called it “the most advanced threat actor we have seen” and “probably one of the most sophisticated cyber attack groups in the world.”
  • Hacks deployed by the Equation Group operated undetected for as long as 14 to 19 years, burrowing into the hard drive firmware of sensitive computer systems around the world, according to Kaspersky. Governments, militaries, technology companies, nuclear research centers, media outlets and financial institutions in 30 countries were among those reportedly infected. Kaspersky estimates that the Equation Group could have implants in tens of thousands of computers, but documents published last year by The Intercept suggest the NSA was scaling up their implant capabilities to potentially infect millions of computers with malware. Kaspersky’s adversarial relationship with Western intelligence services is sometimes framed in more sinister terms; the firm has been accused of working too closely with the Russian intelligence service FSB. That accusation is partly due to the company’s apparent success in uncovering NSA malware, and partly due to the fact that its founder, Eugene Kaspersky, was educated by a KGB-backed school in the 1980s before working for the Russian military.
  • Kaspersky has repeatedly denied the insinuations and accusations. In a recent blog post, responding to a Bloomberg article, he complained that his company was being subjected to “sensationalist … conspiracy theories,” sarcastically noting that “for some reason they forgot our reports” on an array of malware that trace back to Russian developers. He continued, “It’s very hard for a company with Russian roots to become successful in the U.S., European and other markets. Nobody trusts us — by default.”
  • Documents published with this article: Kaspersky User-Agent Strings — NSA Project CAMBERDADA — NSA NDIST — GCHQ’s Developing Cyber Defence Mission GCHQ Application for Renewal of Warrant GPW/1160 Software Reverse Engineering — GCHQ Reverse Engineering — GCHQ Wiki Malware Analysis & Reverse Engineering — ACNO Skill Levels — GCHQ
Paul Merrell

NASA's Secret Relationships with U.S. Defense and Intelligence Agencies - 0 views

  • Declassified Records Trace the Many Hidden Interactions Between the U.S. Civilian and National Security Space Programs Secret Cooperation Punctuated by Disputes over Budgets, Encryption of Scientific Data, and Fallout from the Challenger Tragedy National Security Archive Electronic Briefing Book No. 509
  • Furnishing cover stories for covert operations, monitoring Soviet missile tests, and supplying weather data to the U.S. military have been part of the secret side of the National Aeronautics and Space Administration (NASA) since its inception in 1958, according to declassified documents posted for the first time today by the National Security Archive at The George Washington University (www.nsarchive.org). James E. David, a curator in NASA's Division of Space History, obtained the documents in the course of researching his critically praised book, Spies and Shuttles: NASA's Secret Relationships with the DoD and CIA (University Press of Florida, 2015). David has compiled, edited and introduced more than 50 of these records for today's posting. Even though Congress's intention in forming NASA was to establish a purely civilian space agency, according to David a combination of circumstances led the agency to commingle its activities with black programs operated by the U.S. military and Intelligence Community. This often tight cooperation did not, however, keep disputes from bubbling over on issues such as cost sharing, access to classified information, encryption of data originally intended for civilian use, and delays to military satellite launches caused by the Challenger disaster. Over the years, classification restrictions have kept most of the story of NASA's secret activities out of the public eye. Today's posting brings to light previously unpublished primary source material that underpins Spies and Shuttles and other important literature on the subject. The records were acquired through agency declassification review procedures, specific declassification requests, and archival research.
  • The documents presented here were obtained in the research and writing of Spies and Shuttles: NASA's Secret Relationships with the DoD and CIA. Most were declassified by agencies under the automatic/systematic declassification review program or acquired through declassification requests. They are grouped into the following categories: NASA as a consumer of intelligence NASA's assistance to analyzing intelligence on foreign aeronautical and space programs NASA's participation in cover stories NASA's acquisition and use of classified technologies in its lunar exploration program Restrictions on NASA's remote sensing programs NASA's application satellites and national security requirements Space Shuttle
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    For some reason, proponents of space exploration have a tendency to frame their arguments as an issue of moral necessity for human species preservation, often because self-extinction is likely. It's a weak argument. One can more forcefully argue that homo sapiens has no moral right to migrate outside the planet until such time as it learns to not destroy its own life support systems on Earth; in the meantime, the incredible funding devoted to space exploration would be better spent learning that lesson. But evidence of NASA ties to the Dark State, which has often come to mind when reading such drivel, has been wanting. Now we learn that it does exist but had been concealed. In light of these disclosures, we can discuss the moral issues with more clarity. But still missing: the obvious overlap of NASA's mission with the development of ICBMs and deployment of orbiting weapons platforms.   
Paul Merrell

BBC News - Ukraine crisis: Putin hopes for peace deal by Friday - 0 views

  • Russia's president has said he is hoping for a peace deal between Ukraine and pro-Russian rebels by Friday. Vladimir Putin urged both sides to stop military action in eastern Ukraine, adding that his views and those of his Ukrainian counterpart were very close. Ukraine President Petro Poroshenko said they had agreed a "ceasefire process" but PM Arseny Yatsenyuk said no plan from Mr Putin should be trusted.
  • Insisting that Russia is in no way a negotiating party in the Ukrainian conflict, Vladimir Putin is nevertheless certain that it is Moscow's proposals that are going to advance both sides to peace. Mr Putin's plan is short and leaves a lot of room for interpretation. Take, for example, a point on moving Ukrainian troops away from positions from which towns and cities can be shelled. Taken to an extreme, this could mean rewinding the situation on the ground to a point several weeks ago before Ukrainian advances. Just two weeks ago the discussions centred around when, and not if, the rebels would have to move out of Donetsk and Luhansk. But Moscow's plan will allow them to strengthen their control over the two regional centres and other areas.
  • Mr Putin has often seemed unwilling to negotiate from a position of weakness and the reversals of the past few days illustrate this perfectly. Now it's Petro Poroshenko who has to choose whether to accept something which clearly protects Kiev's enemies in eastern Ukraine.
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  • Speaking to journalists in the Mongolia capital Ulan Bator, Mr Putin said the two sides should reach agreement when they resumed talks in Minsk on Friday. "Our views on the way to resolve the conflict, as it seemed to me, are very close," he said, referring to a phone conversation with Mr Poroshenko.
  • He said he was proposing a seven-point peace plan: The Ukrainian army and eastern rebels should stop "active offensive operations" Ukrainian troops must pull back to a distance where they would be unable to shell population centres International monitoring of the ceasefire No use of military jets against civilians "All-for-all" prisoner exchange without preconditions Humanitarian corridor for refugees and to deliver aid Restoration of destroyed infrastructure. In its statement (in Russian), the Kremlin said a phone conversation had taken place on Wednesday between the two presidents in which their points of view had "coincided significantly" on possible ways to end the crisis.
  • Mr Putin's spokesman, Dmitry Peskov, clarified for Russian news agency Ria-Novosti: "Putin and Poroshenko did not agree a ceasefire in Ukraine because Russia is not party to the conflict, they only discussed how to settle the conflict." Mr Poroshenko said he also hoped for a ceasefire. "The people of Ukraine want peace while some politicos want to play a game of war. I will not allow this to happen. We must pull together in fighting for peace," he said. But Ukrainian Prime Minister Arseny Yatsenyuk rejected the proposal. "The real plan of Putin is to destroy Ukraine and to restore the Soviet Union," he said.
  • Pro-Russian rebels said they supported Mr Putin's proposals but that they did not trust Mr Poroshenko to observe a ceasefire. Meanwhile a Ukrainian official in Zaporizhzhya region, west of the combat zone, said the bodies of 87 soldiers and pro-government volunteers killed in a controversial incident near the town of Ilovaysk several days ago had been brought to a local morgue. The Ukrainian military says troops were fired on by rebels on Sunday after they had apparently been given safe passage out of an encirclement during rapid rebel advances. No-one has been able to confirm the circumstances of the killings or the total number of dead. More than 2,600 civilians and combatants have been killed and more than a million people have fled their homes since fighting erupted in eastern Ukraine in April, when pro-Russian separatists there declared independence.
Paul Merrell

Iran Is Invited to Join U.S., Russia and Europe for Talks on Syria's Future - The New Y... - 0 views

  • Iran has been invited to join talks in Vienna this week with Russia, the United States and European nations on whether a political resolution is possible in the Syrian civil war. If Iran accepts, it will be the first time Secretary of State John Kerry will enter formal negotiations with Tehran on issues beyond the nuclear accord reached in July. Russia has been pressing to include Iran, the only other major power giving military support to President Bashar al-Assad in his effort to remain in power. Senior American officials have begun to acknowledge in recent weeks that no serious discussion of a possible political succession plan in Syria can happen without Tehran’s involvement.But the American denunciation of Iran’s activities in Syria, including its support for Mr. Assad’s forces and for terror groups like Hezbollah, has always prevented the United States from including Iran in formal talks about the Syrian crisis. Continue reading the main story Related Coverage Turkey Confirms Strikes Against Kurdish Militias in SyriaOCT. 27, 2015 U.N. Rights Investigator Highly Critical of IranOCT. 27, 2015 Assad Makes Unannounced Trip to Moscow to Discuss Syria With PutinOCT. 21, 2015 The State Department spokesman, John Kirby, buried that policy at a briefing on Tuesday, before it was announced that Mr. Kerry would attend the meeting on Syria in Vienna on Thursday and Friday. “We anticipate that Iran will be invited to attend this upcoming meeting,” Mr. Kirby said.
  • Mr. Kirby added that the United States still opposed what he termed Iran’s “destabilizing activities” in Syria. But he said that the United States “recognized that at some point in the discussion, moving toward a political transition, we have to have a conversation and a dialogue with Iran.”The change is another example of how Russia’s military entry into the Syrian war has changed the power dynamic of the sporadic negotiations. For a long while the United States argued that Mr. Assad must go — as President Obama declared four years ago at the White House — before negotiations on a successor could begin. That position was altered recently to say that a political solution could be sought as long as it included an eventual transition of power, perhaps to another Alawite-dominated government.But the latest shift is a recognition that Russia and Iran may well be the two biggest voices in who succeeds Mr. Assad — if any political transition can be engineered — and that to leave the Iranians out of the conversation was “simply ignoring reality,” one senior American diplomat said.
Paul Merrell

More Is Needed to Beat ISIS, Pentagon Officials Conclude - The New York Times - 0 views

  • Pentagon officials have concluded that hundreds more trainers, advisers and commandos from the United States and its allies will need to be sent to Iraq and Syria in the coming months as the campaign to isolate the Islamic State intensifies. In meetings with President Obama’s national security team in recent weeks, military officials have told the White House that they believe they have made significant progress in the fight against the Islamic State in both Iraq and Syria, administration officials said. But to deal a lasting blow to the extremist Sunni militancy, also known as ISIS and ISIL, they believe that additional forces will be needed to work with Iraqi, Kurdish and Syrian opposition fighters on the ground in the two countries. Continue reading the main story Related Coverage U.S. Relies Heavily on Saudi Money to Support Syrian RebelsJAN. 23, 2016 U.S. Revamping Rebel Force Fighting ISIS in SyriaSEPT. 6, 2015 Obama Administration Ends Effort to Train Syrians to Combat ISISOCT. 9, 2015 In the past, the Pentagon’s requests for additional troops in both Iraq and Afghanistan have been met with skepticism by Mr. Obama, and his aides have said he has resented what he has regarded as efforts to pressure him. But the rise of the Islamic State has alarmed the White House, and a senior administration official said Thursday that the president is willing to consider raising the stakes in both Iraq and Syria.
Paul Merrell

Ford White House Altered Rockefeller Commission Report - 0 views

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

M of A - The Two Versions Of The Latakia Plane Incident - 0 views

  • Turkey says two of its F-16 fighters shot down a jet that had crossed into Turkey and then crashed in Syria: Two Turkish F-16's shot down a Russian-made SU-24 jet on Nov. 24 near the Syrian border after it violated Turkish airspace, presidential sources said. Turkey shot down the jet after it failed to heed the warnings within the rules of engagement. Initial reports said the jet belonged to Russia, but presidential sources later clarified that the jet's nationality was unknown. The Turkish Armed Force also stated that the jet of “unknown nationality” had been warned 10 times in five minutes about its violation of the border. Meanwhile, a Turkish official told Reuters that two warplanes approached Turkish border and were warned before one of them was shot down.
  • Russia's official version of the incident is remarkably different from Turkey's: Today an aircraft from the Russian air group in the Syrian Arab Republic crashed on the territory of Syria supposedly shot down from the ground. The aircraft was flying at the altitude of 6 000 metres. The status of the Russian pilots is being defined. According to the preliminary data, the pilots managed to eject from the warplane. The circumstances of the crash are being defined. During all the flight time, the aircraft was flying only within the borders of the Syrian territory. That was registered by objective monitoring data.
  • UPDATE: Putin just held a press conference with the Jordan King Abdullah on his side(!) and boy was he pissed. Some major points: Confirms Turkish version of air-to-air missile but says plane was in Syrian airspace Describes Turkish attack as "a stab in the back by accomplices of terrorists" "Together with our US partners we signed an agreement to prevent" incidents like this "Ankara will discuss this tragedy with NATO as if it was Russia who shot down their jet. Does Turkey want NATO to serve ISIS goals?" Accuses Turkey of financing, protecting ISIS Turkey doing oil business with ISIS This will have serious consequences for Russian-Turkish relations
Paul Merrell

EU finally stands up to US 'bullying' over Iran sanctions | Asia Times - 0 views

  • By Pepe Escobar September 30, 2018 4:36 PM (UTC+8) Share Tweet Linkedin Print Email Share 0 Comment 0 History may one day rule this was the fateful geopolitical moment when the European Union clinched its PhD on foreign policy. Last week, EU foreign policy head Federica Mogherini and Iranian Foreign Minister Mohammad Javad Zarif, announced at the UN a “special purpose vehicle” (SPV) to deal with the Trump administration’s sanctions on Iran after the US unilaterally pulled out of the JCPOA,  also known as the Iran nuclear deal.
  • Mogherini crucially emphasized, “in practical terms, this will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world.” The SPV, which according to Mogherini “is aimed at keeping trade with Tehran flowing while the US sanctions are in place,” could be in effect before the second stage of US sanctions begin in early November. This single initiative means Brussels is attempting to position itself as a serious geopolitical player, openly defying the US and essentially nullifying the Iran demonization campaign launched by the White House, CIA and State Department.
  • It may have taken a few months, but the EU-3 have finally realized what Moscow and Beijing already knew: any business with Iran – which is in the interest of all players – must bypass the US dollar. So now we come to a situation where the EU-3 will set up a multinational, state-backed, financial mechanism to help European companies conduct business with Iran in euros – and thus away from US financial enforcers. In parallel, we will have Russia and China doing business with Iran in rubles and yuan.
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  • And in a total symbiotic way, the SPV opens another path for Russia and China as well. After all, the SPV mechanism will bypass the Belgium-based SWIFT financial network, on which the US interferes at will. SPV may become the preferred post-SWIFT mechanism, allowing for even more cross-border business across Eurasia and expanding to the Global South.
  • The game reveals its complexity when we consider that Iran has been the catalyst for the EU to finally stand up to the US – and potentially get closer to Russia and China. What we see emerging is the contours of a possible cross-Eurasia alliance, in multiple fronts, between Russia-China-Iran – the three key nodes of Eurasia integration – and the EU-3. It’s a game worthy of a Persian chess master: involving energy wars, the balance of power in Southwest Asia, the absolute power of the US-controlled global financial system and the status of the US dollar – bolstered by the petrodollar – as the global reserve currency.
Paul Merrell

Former Greek Finance Minister: Universal Basic Income Is Now A Necessity - 0 views

  • Yanis Varoufakis and Noam Chomsky discuss the concept of a basic income guarantee also known as a universal basic income.
  • In this video, former finance minister of Greece, professor of economics, author, and founder of the Democracy in Europe Movement 2025 (DiEM25), Yanis Varoufakis, argues why the Basic Income is a necessity today. His arguments take into account a macro socio-economic, psychological, philosophical and moral perspective. In addition to the speech, Varoufakis addresses a wide range of questions from the public. What is the social democratic tradition about? And how did influence Capitalism in the 20th century? Why is Social Democracy coming to an end? And how is the process of financialization & the rise of technology contributing to its demise? What is Bankruptocracy? What problems is it posing to our society? What is the current narrative on the relationship between the markets & state in terms of wealth generation? And how and why is a change required in this narrative in order to make the Basic Income a reality? What are the arguments are against a Basic Income? And how should they be confronted? How is a Basic Income aligned with the Libertarian philosophy? Will it promote freedom of choice and self-determination? How will a Basic Income promote creativity in our society? All of these questions and much more are addressed in the video:
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    Coming to grips with the fact that we do and will not have jobs for everyone: Can basic income replace the failed welfare state system?
Paul Merrell

Former Icelandic minister claims FBI tried to frame Julian Assange | Daily Mail Online - 0 views

  • Ögmundur Jonasson said US authorities first told him in June 2011 that there was an 'imminent attack' on Iceland's government databases But when they arrived in August, Jonasson claims the FBI 'sought Iceland's cooperation to frame Assange and WikiLeaks' Jonasson said he then immediately kicked them out of Iceland The story was widely reported on in 2013, but Jonasson made no mention of the US trying to frame Assange It became known that the mission was part of a 'wide-ranging investigation' into Assange and WikiLeaks Jonnason said himself he made it clear he is on 'Assange and WikiLeaks' side'
Paul Merrell

China's Official Press Agency Calls For New Reserve Currency, And New World Order | Zer... - 1 views

  • We assume it is a coincidence that on the day in which we demonstrate China's relentless appetite for gold, driven by what we and many others believe is the country's desire to have a call option on a gold-backed reserve currency when the time comes, just posted in China's official press agency, Xinhua, is an op-ed by writer Liu Chang in which he decries the "US fiscal failure which warrants a de-Americanized world" and flatly states that the world should consider a new reserve currency "that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States." Of course, if China were serious, and if the world were to voluntarily engage in such a (r)evolutionary reserve currency transition, then all Magic Money Tree theories that the only thing better than near infinite debt is beyond infinite debt, would promptly be relegated to the historic dust heap of idiotic theories where they belong. Some of China's (which as a reminder is the single largest offshore holder of US Treasury paper, and the second largest of all only second naturally to the Federal Reserve whose $85 billion in monthly monetizing "flow" is what is keeping rates from exploding higher) thoughts as captured in the Xinhua Op-ed:
  • Reform of the world’s financial system should include the introduction of a new internatonal reserve currency to replace the U.S. dollar The international community could thus permanently stay away from the spillover of intensifying domestic political turmoil in the U.S. Fiscal impasse in the U.S. is a good time for “befuddled world” to start considering building a “de-Americanized world” Impasse has left many nations’ dollar assets in jeopardy and the international community agonized Other cornerstones should be laid to underpin a de-Americanized world, including respect for sovereignty, recognizing authority of UN in handling global hotspot issues and giving developing and emerging market economies more say in major international financial institutions Purpose of such changes is not to “completely toss the United States aside,” rather to encourage Washington to play a much more constructive role in addressing global affairs Of course, if and when the day comes that the USD is no longer the reserve currency, kiss America's superpower, or any power, status, which is now based purely on the USD's reserve currency status, and the ability to fund half the US budget deficit with debt promptly monetized by the Fed, goodbye.
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    Sounds like more than a hint from China that Congress needs to act quickly to remove concerns that the U.S. may default on its debt. (The Xinhua op-ed is republished on the linked page.)  I must admit that I have my moments when I like the idea of the entire corrupt Western bankster cartel would just get on with committing financial suicide so the world could get on with whatever is to rise from those ashes. 
Paul Merrell

Furious Russia, Downgraded To Just Above Junk By S&P, Proposes "Scorched Earth" Retalia... - 0 views

  • a few hours ago that joke of a rating agency, Standard & Poor's, which also earlier announced it was "affirming" France at an AA rating making it very clear it will no longer accept being sued for telling the truth and downgrading sovereigns or otherwise have its offices abroad raided, not only upgraded Cyprus from B- to B (please deposits your funds in Cyprus banks now: they are safe, S&P promises), but - far more importantly - delivered a political message to the Kremlin, and downgraded Russia from BBB to BBB-, one short notch away from junk status. This was the first downgrade of Russia by S&P since December 2008.
  • Russia's response was prompt. First, in retaliation to the downgrade, Russian economy minister Alexei Ulyukaev said S&P’s downgrade of Russia’s rating was expected by investors, won’t significantly change their behavior, adding the obvious that the decision to cut Russia’s rating was partly political, partly based on economic situation. In other words, entirely symbolic - it is not as if Russia has access to bond markets anyway, plus as we wrote earlier this week in "Why Putin Is Smiling At The Bond Market's Blockade Of Russia", it is not as if it needs them. But far more importantly, and ahead of yet another round of western sanctions which appears imminent unless Obama is to look even more powerless than he currently is (granted, a difficult achievement), Russian presidential adviser Sergei Glazyev proposed plan of 15 measures to protect country’s economy if sanctions applied, Vedomosti newspaper reports, citing Glazyev’s letter to Finance Ministry. According to Vedomosti as Bloomberg reported, Glazyev proposed:
  • Russia should withdraw all assets, accounts in dollars, euros from NATO countries to neutral ones Russia should start selling NATO member sovereign bonds before Russia’s foreign-currency accounts are frozen Central bank should reduce dollar assets, sell sovereign bonds of countries that support sanctions Russia should limit commercial banks’ FX assets to prevent speculation on ruble, capital outflows Central bank should increase money supply so that state cos., banks may refinance foreign loans Russia should use national currencies in trade with customs Union members, other non-dollar, non-euro partners In other words, a full-blown scorched earth campaign by Russia.
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  • Granted, Russian holdings of US Treasurys are not that substantial (and could be monetized entirely in three months of POMO by the Fed), and western financial linkages to Russia, aside from trade routes, are not life-threatening, but if Russia were to take the baton, and other BRIC countries, already furious by the recent US decision to not boost their IMF status, follow suit, then Obama's life is about to become a living nightmare. Especially, if that most important BRIC member - China - does any of the many things it can do to indicate if, in this brand new Cold War, it is with or against the US... Finally, those curious what are the linkages between the west and Russia are, review our recent post on the matter: All You Need To Know About Russia, In Charts.
Paul Merrell

How William Hague Deceived the House of Commons on Ukraine | David Morrison - 0 views

  • In a statement on 4 March 2014, Foreign Minister William Hague deceived the House of Commons about the legitimacy of the new regime in Ukraine. He led the House to believe that the Ukrainian parliament, the Verkhovna Rada, had removed President Yanukovich from power on 22 February in accordance with the Ukrainian constitution. "It is wrong to question the legitimacy of the new authorities", he said. It is simply untrue that the Rada followed the procedure laid down in the Ukrainian constitution to impeach and remove a president from power. Article 108 of the constitution specifies four circumstances in which a president may cease to exercise power before the end of his term. Those are: resignation; inability to exercise his or her powers for reasons of health; removal from office by the procedure of impeachment; death.
  • The procedure for removal from office by impeachment is laid down in Article 111. It is not unlike that required for the impeachment and removal from power of a US president, which could take months. Thus, Article 111 obliges the Rada to establish a special investigatory commission to formulate charges against the president, seek evidence to justify the charges and come to conclusions about the president's guilt for the Rada to consider. To find the president guilty, at least two-thirds of Rada members must assent. Prior to a final vote to remove the president from power, the procedure requires the Constitutional Court of Ukraine to review the case and certify that the constitutional procedure of investigation and consideration has been followed, and the Supreme Court of Ukraine to certify that the acts of which the President is accused are worthy of impeachment. To remove the president from power, at least three-quarters of Rada members must assent. The Rada didn't follow this procedure at all. No investigatory commission was established and the Courts were not involved. On 22 February, the Rada simply passed a bill removing President Yanukovych from office.
  • Furthermore, the bill wasn't even supported by three-quarters of Rada members as required by Article 111 - it was supported by 328 members, when it required 338 (since the Rada has 450 members). Nevertheless, justifying UK support for the new regime in Kiev in the House of Commons on 4 March, William Hague said: "Former President Yanukovych left his post and then left the country, and the decisions on replacing him with an acting President were made by the Rada, the Ukrainian Parliament, by the very large majorities required under the constitution, including with the support of members of former President Yanukovych's party, the Party of Regions, so it is wrong to question the legitimacy of the new authorities." That gives the impression that the procedure prescribed in the Ukrainian constitution for the removal of a president from office had been followed, when in fact it hadn't and therefore the new authorities in Kiev are illegitimate. President Putin questioned the legitimacy of the authorities in Kiev at his press conference on 4 March, just before William Hague spoke in the House of Commons:
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  • "Are the current authorities legitimate? The Parliament is partially, but all the others are not. The current Acting President is definitely not legitimate. There is only one legitimate President, from a legal standpoint. Clearly, he has no power. However, as I have already said, and will repeat: Yanukovych is the only undoubtedly legitimate President. "There are three ways of removing a President under Ukrainian law: one is his death, the other is when he personally steps down, and the third is impeachment. The latter is a well-deliberated constitutional norm. It has to involve the Constitutional Court, the Supreme Court and the Rada. This is a complicated and lengthy procedure. It was not carried out. Therefore, from a legal perspective this is an undisputed fact." There is a fourth way - ill health - but, aside from that, Putin is undoubtedly correct.
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    Although directed at comments made by the UK Foreign Minister, similar statements were issued by the Obama Administration. What happened in the Ukraine was a coup, not a legitimate impeachment of its President.  Notice that the article's link to the Ukraine Constitution is now dead. Among the coup leader's other unlawful actions, post-coup the Ukraine Rada repealed the former constitution by simple majority and reinstated the Constitution of 2004. But the enacting legislation was never signed by Ukraine's President, who had fled into exile. Moreover, the 2004 constitution had already been declared void by Ukraine's Constitutional Court because of procedural violations, repeated in its re-enactment. See https://en.wikipedia.org/wiki/Constitution_of_Ukraine#2004_and_2010_amendments_and_alleged_2014_return_to_2004_amendments  It definitely was a coup, not a legitimate transfer of power.   
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