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Gary Edwards

United States Constitution - Wikipedia, the free encyclopedia - 0 views

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    "The Constitution of the United States is the supreme law of the United States of America.[1] Check out that footnote!!! excerpt: The Constitution originally consisted of seven Articles. The first three Articles embody the doctrine of the separation of powers, whereby the federal government is divided into three branches: the legislature, consisting of the bicameral Congress; the executive, consisting of the President; and the judiciary, consisting of the Supreme Court and other federal courts. The fourth and sixth Articles frame the doctrine of federalism, describing the relationship between State and State, and between the several States and the federal government. The fifth Article provides the procedure for amending the Constitution. The seventh Article provides the procedure for ratifying the Constitution. The Constitution was adopted on September 17, 1787, by the Constitutional Convention in Philadelphia, Pennsylvania, and ratified by conventions in eleven States. It went into effect on March 4, 1789.[2] Since the Constitution was adopted, it has been amended twenty-seven times. The first ten amendments (along with two others that were not ratified at the time) were proposed by Congress on September 25, 1789, and were ratified by the necessary three-fourths of the States on December 15, 1791.[3] These first ten amendments are known as the Bill of Rights. The Constitution is interpreted, supplemented, and implemented by a large body of constitutional law. The Constitution of the United States was the first constitution of its kind, and has influenced the constitutions of many other nations."
Paul Merrell

Greens Question Trump's Victory - Consortiumnews - 0 views

  • A sudden flood of cash has enabled the Green Party to demand recounts of votes in Wisconsin, Pennsylvania and Michigan, three formerly Democratic states that largely decided the 2016 election for Donald Trump, reports Joe Lauria.
Paul Merrell

How Barack Obama turned his back on Saudi Arabia and its Sunni allies | Middle East | N... - 0 views

  • Commentators have missed the significance of President Barack Obama’s acerbic criticism of Saudi Arabia and Sunni states long allied to the US for fomenting sectarian hatred and seeking to lure the US into fighting regional wars on their behalf. In a series of lengthy interviews with Jeffrey Goldberg published in The Atlantic magazine, Mr Obama explains why it is not in the US’s interests to continue the tradition of the US foreign policy establishment, whose views he privately disdains, by giving automatic support to the Saudis and their allies.  Obama’s arguments are important because they are not off-the-cuff remarks, but are detailed, wide ranging, carefully considered and leading to new departures in US policy. The crucial turning point came on 30 August 2013 when he refused to launch air strikes in Syria. This would, in effect, have started military action by the US to force regime change in Damascus, a course of action proposed by much of the Obama cabinet as well by US foreign policy specialists.  Saudi Arabia, Turkey and the Gulf monarchies were briefly convinced that they would get their wish and the US was going to do their work for them by overthrowing President Bashar al-Assad. They claimed this would be easy to do, though it would have happened only if there had been a full-scale American intervention and it would have produced a power vacuum that would have been filled by fundamentalist Islamic movements as in Iraq, Afghanistan and Libya. Mr Goldberg says that by refusing to bomb Syria, Obama “broke with what he calls, derisively, ‘the Washington Playbook’. This was his liberation day”.
  • It will be important to know after the US election if the new president will continue to rebalance US foreign policy away from reliance on Sunni powers seeking to use American military and political “muscle” in their own interests. Past US leaders have closed their eyes to this with disastrous consequences in Afghanistan, Iraq, Libya and Syria. Mr Goldberg says that President Obama “questioned, often harshly, the role that America’s Sunni Arab allies play in fomenting anti-American terrorism. He is clearly irritated that foreign policy orthodoxy compels him to treat Saudi Arabia as an ally”.  What is truly strange about the new departures in US foreign policy is that they have taken so long to occur. Within days of 9/11, it was known that 15 out of the 19 hijackers were Saudi, as was Osama bin Laden and the donors who financed the operation. Moreover, the US went on treating Saudi Arabia, Turkey, Pakistan and the Gulf monarchies as if they were great powers, when all the evidence was that their real strength and loyalty to the West were limited. 
  • Though it was obvious that the US would be unable to defeat the Taliban so long as it was supported and given sanctuary by Pakistan, the Americans never confronted Pakistan on the issue. According to Goldberg, Obama “privately questions why Pakistan, which he believes is a disastrously dysfunctional country, should be considered an ally of the US at all”. As regards Turkey, the US President had hopes of its President Recep Tayyip Erdogan, but has since come to see him as an authoritarian ruler whose policies have failed.
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  • A striking feature of Obama’s foreign policy is that he learns from failures and mistakes. This is in sharp contrast to Britain where David Cameron still claims he did the right thing by supporting the armed opposition that replaced Muammar Gaddafi in Libya, while George Osborne laments Parliament’s refusal to vote for the bombing of Syria in 2013. 
  • It will become clearer after November’s presidential election how far Obama’s realistic take on Saudi Arabia, Turkey, Pakistan and other US allies and his scepticism about the US foreign policy establishment will be shared by the new administration. The omens are not very good since Hillary Clinton supported the invasion of Iraq in 2003, intervention in Libya in 2011 and bombing Syria in 2013. If she wins the White House, then the Saudis and the US foreign policy establishment will breathe more easily. 
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    Patrick Cockburn, one of the very best Mideast investigative reporters, riffs on Obama's foreign policy changes and questions whether Obama's realist foreign policy will survive a new resident at 1600 Pennsylvania Avenue.
Gary Edwards

'Clinton death list': 33 spine-tingling cases - 0 views

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    "(Editor's note: This list was originally published in August 2016 and has gone viral on the web. WND is running it again as American voters cast their ballots for the nation's next president on Election Day.) How many people do you personally know who have died mysteriously? How about in plane crashes or car wrecks? Bizarre suicides? People beaten to death or murdered in a hail of bullets? And what about violent freak accidents - like separate mountain biking and skiing collisions in Aspen, Colorado? Or barbells crushing a person's throat? Bill and Hillary Clinton attend a funeral Apparently, if you're Bill or Hillary Clinton, the answer to that question is at least 33 - and possibly many more. Talk-radio star Rush Limbaugh addressed the issue of the "Clinton body count" during an August show. "I swear, I could swear I saw these stories back in 1992, back in 1993, 1994," Limbaugh said. He cited a report from Rachel Alexander at Townhall.com titled, "Clinton body count or left-wing conspiracy? Three with ties to DNC mysteriously die." Limbaugh said he recalled Ted Koppel, then-anchor of ABC News' "Nightline," routinely having discussions on the issue following the July 20, 1993, death of White House Deputy Counsel Vince Foster. In fact, Limbaugh said, he appeared on Koppel's show. "One of the things I said was, 'Who knows what happened here? But let me ask you a question.' I said, 'Ted, how many people do you know in your life who've been murdered? Ted, how many people do you know in your life that have died under suspicious circumstances?' "Of course, the answer is zilch, zero, nada, none, very few," Limbaugh chuckled. "Ask the Clintons that question. And it's a significant number. It's a lot of people that they know who have died, who've been murdered. "And the same question here from Rachel Alexander. It's amazing the cycle that exists with the Clintons. [Citing Townhall]: 'What it
Gary Edwards

Impeach Judge James Robart for violating sovereignty and Constitution - 0 views

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    "It's still hard to believe we now live in a country where a district judge can demand that we bring in refugees from state sponsors of terror and failed states saturated with terrorists and no data systems during a time of war. It's almost unfathomable that a district judge, an institution created by Congress, can overturn long-standing refugee law and bar the federal government from prioritizing persecuted religious minorities for refugee resettlement. All in contravention to statute, numerous clauses of the Constitution, the social contract, the social compact, popular sovereignty, jurisdictional sovereignty, and 200 years of case law. If Obergefell redefined the building block of all civilization, Judge James Robart's ruling redefined the building block of a sovereign nation. It's hard to comprehend a judicial opinion more divorced from our Constitution, sovereignty, fundamental laws, founding values, history, and tradition. It's also hard to imagine an opinion that is of greater consequence - unless it is ignored. In the long run, Congress must strip the federal judiciary of their power grab and restore Congress' plenary power over immigration, as it was since our founding. However, in the meantime, it's time to make impeachment great again. Impeachment was a critical check on abuse of power   Before the growth of political parties killed the separation of powers, the tool of impeachment was regarded by our founders as one of the most effective ways of checking the executive and judicial branches of government. By my count, impeachment is referenced 58 times in the Federalist Papers and countless times during the Constitutional Convention. Impeachment [U.S.CONST. art. II, §4] was not only reserved for those who engage in criminal behavior. It was clearly designed to check abuse of power. As the Congressional Research Service observes, Congress has identified "improperly exceeding or abusing the powers of the office" as a criterion for
Gary Edwards

David Skeel: A Nation Adrift From the Rule of Law - WSJ.com - 1 views

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    "No one doubts that the coming election will be the most important referendum on the size and nature of government in a generation. But another issue is nearly as important and has gotten far less attention: our crumbling commitment to the rule of law. The notion that we are governed by rules that are transparent and enacted through the legislative process-not by the whims of our leaders-is at the heart of that commitment. If legislators exceed their authority under the Constitution, or if otherwise legitimate laws are misused, courts must step in to prevent or remedy the potential harm. During the 2008 financial crisis, the government repeatedly violated these principles. When regulators bailed out Bear Stearns by engineering its sale to J.P. Morgan Chase, they flagrantly disregarded basic corporate law by "locking up" the transaction so that no other bidder could intervene. When the government bailed out AIG six months later, the Federal Reserve funded the bailout by invoking extraordinary loan powers for what was clearly an acquisition rather than a loan. (The government acquired nearly 80% of AIG's stock.) Two months later, the Treasury Department used money from the $700-billion Troubled Asset Relief Program fund to bail out the car companies. This was dubious. Under the statute, the funds were to be used for financial institutions. But the real violation came a few months later, when the government used a sham bankruptcy sale to transfer Chrysler to Fiat while almost certainly stiffing Chrysler's senior creditors. According to two leading legal scholars, Eric Posner and Adrian Vermeule, rule-of-law violations are inevitable during a crisis. The executive branch takes all necessary steps, even if that means violating the law, until the crisis has passed. The argument is powerful, and its advocates are correct that presidents and other executive-branch officials often push the envelope during a crisis. Yet pushing the envelope isn't the same thing as f
Gary Edwards

Peter Beinart: How Ron Paul Will Change the GOP in 2012 - The Daily Beast - 2 views

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    Not a big Peter Beinhart fan, but this article explains a large part of the Ron Paul phenom. After a life time as a big C Goldwater-Reagan Constitutional Conservative, this summer i made a full transition to big C Constitutional Libertarian. The tipping point for me was the GAO audit of the Federal Reserve, where they discovered $16.1 Trillion of taxpayer dollars missing from the Federal Reserve Bankster Cartel management books. It went to a who's who of international Bankster Cartel members. None of the taxpayer funded "financial collapse of 2008" bailout dollars went to the purposes chartered by their legislation. That includees the TARP $850 Billion, the Obama Stimulous $1 Trillion, and the mega FRBC $16.1 Trillion. No bad debts were purchased and retired. No rotting mortgage securities were swept up and restructured. No shovel ready jobs either. And no one in government or banksterism having caused the financial collapse went to jail. Instead, the perps feasted on the bailout dollars. The debt remains on the books of international Banksters, collecting interest, thirsting for foreclosure. The Bankster Cartel members are flush with cash, but not lending. By law (The Federal Reserve Act of December 23rd, 1913), FRBC members must keep a significant amount of their assets on "reserve" at the Federal Reserve, at 6% interest. In exchange for managing this process and the exploding money supply, the taxpayers of the USA are obligated by law to pay the FRBC 1% per year of (assets under management" (the money supply). Take note: the FRBC takes the 1% per year payment for their services in the form of GOLD!! They will not take payment in the form of paper notes labeled legal tender "Federal Reserve Notes". They only take GOLD. My transition to Constitutional Libertarian begins with a strct reading of the Constitution (the How), the Declaration of Independence, (the Why), and belief in the Rule of Law, not man. The concept of achievi
Gary Edwards

Romney's Best Speech Yet - 0 views

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    Guy Benson at Townhall.com posted an excellent dissection of Romney's incredible response and counterpunch to Obama's calling him a liar and a felon. Looks like it's game on. The dissection includes lots of links, including a link to the full Romney speech. Reaganesque!!!! Bravo! excerpt: (Guy Benson) I dissected Obama's "worst speech yet" back in April (he hasn't topped it since, though he's come close), so why not write the uplifting companion piece? Romney does most of the heavy lifting for me, taking a rhetorical battering ram to the president's insulting and demeaning "you didn't build that" remarks in Virginia over the weekend. The presumptive Republican nominee hit the trail in Irwin, Pennsylvania yesterday afternoon and just unloaded on his opponent, savaging the president's ubiquitous strawmen and mounting a spirited defense of merit, individual accomplishment and American entrepreneurship. Working from loose notes, Romney appeared to warm to his task, connecting with the gathered crowd in a way that he's struggled to pull off throughout much of the campaign. If yesterday's Mitt Romney continues to show up on the stump, he'll win:
Paul Merrell

UN representative Samantha Power: U.S. has 'nothing to apologize' to Afghanistan for | ... - 0 views

  • Washington’s UN representative Samantha Power said Thursday Afghanistan is owed no apology for US actions in the country since the overthrow of the Taliban 12 years ago. “We have nothing to apologize for. Our soldiers have sacrificed a great deal,” Power told CNN, as Washington hammered out the details of a new security agreement between Afghanistan and the United States. The issue of whether or not the United State would offer an apology for mistakes made during the Afghan conflict had emerged as a possible sticking point in the final stages of long drawn out negotiations with Kabul.
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    As I've said before, a war of aggression does not stop being a war of aggression just because 1600 Pennsylvania Avenue has new tenants. Considering that we hung German and Japanese leaders for their wars of aggression, I'd say that our head of state needs at the very least to apologize. Better if he's prosecuted, but an apology might be viewed as a mitigating factor come sentencing time.
Gary Edwards

The Daily Bell - 9/11 Fourteen Years Later - 0 views

  • The Official Version of 9/11 goes something like this: Directed by a beardy-guy from a cave in Afghanistan, nineteen hard-drinking, coke-snorting, devout Muslims enjoy lap dances before their mission to meet Allah. Using nothing more than craft knifes, they overpower cabin crew, passengers and pilots on four planes. And hangover or not, they manage to give the world's most sophisticated air defence system the slip. Unfazed by leaving their "How to Fly a Passenger Jet" guide in the car at the airport, they master the controls in no-time and score direct hits on two towers, causing THREE to collapse completely.
  • The laws of physics fail, and the world watches in awe as asymmetrical damage and scattered low temperature fires cause steel-framed buildings to collapse symmetrically through their own mass at free-fall speed, for the first time in history. Despite their dastardly cunning and superb planning, they give their identity away by using explosion-proof passports, which survive the destruction of steel and concrete and fall to the ground where they are quickly discovered lying on top of the mass of debris.
  • Meanwhile in Washington Hani Hanjour, having previously flunked Cessna flying school, gets carried away with all the success of the day and suddenly finds incredible abilities behind the controls of a jet airliner. Instead of flying straight down into the large roof area of the Pentagon, he decides to show off a little. Executing an incredible 270 degree downward spiral, he levels off to hit the low facade of the Pentagon. Without ruining the nicely mowed lawn and at a speed just too fast to capture on video.
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  • In the skies above Pennsylvania  Desperate to talk to loved ones before their death, some passengers use sheer willpower to connect mobile calls that would not be possible until several years later. And following a heroic attempt by some to retake control of Flight 93, the airliner crashes into a Pennsylvania field leaving no trace of engines, fuselage or occupants except for the standard issue Muslim terrorist bandana.
  • During these events President Bush continues to read "My Pet Goat" to a class of primary school children.
  • In New York World Trade Center leaseholder Larry Silverstein blesses his own foresight in insuring the buildings against terrorist attack only six weeks previously. 
  • In Washington The Neoconservatives are overjoyed by the arrival of the "New Pearl Harbor," the necessary catalyst for launching their pre-planned wars.
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    "Millions of refugees from Washington's wars are currently over-running Europe. Washington's 14-year and ongoing slaughter of Muslims and destruction of their countries are war crimes for which the US government's official 9/11 conspiracy theory was the catalyst. Factual evidence and science do not support Washington's conspiracy theory. The 9/11 Commission did not conduct an investigation. It was not permitted to investigate. The Commission sat and listened to the government's story and wrote it down. Afterwards, the chairman and cochairman of the Commission said that the Commission "was set up to fail." For a factual explanation of 9/11, watch this film: https://www.youtube.com/watch?v=OsoY3AIRUGA&feature=youtu.be. Here is an extensive examination of many of the aspects of 9/11: http://www.luogocomune.net/site/modules/sections/index.php?op=viewarticle&artid=167. Phil Restino of the Central Florida chapter of Veterans For Peace wants to know why national antiwar organizations buy into the official 9/11 story when the official story is the basis for the wars that antiwar organizations oppose. Some are beginning to wonder if ineffectual peace groups are really Homeland Security or CIA fronts. The account below of the government's 9/11 conspiracy theory reads like a parody, but in fact is an accurate summary of the official 9/11 conspiracy theory. It was posted as a comment in the online UK Telegraph on September 12, 2009, in response to Charlie Sheen's request to President Obama to conduct a real investigation into what happened on September 11, 2001."
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

The NUMEC Affair: Was Nuclear Weapons Fuel Diverted to Israel? - 0 views

  • Beginning more than 50 years ago, and extending over the period from 1957 to 1978, according to official U.S. government records and studies, more than 300 kilograms of uranium 235 (U-235) in the form of highly enriched uranium (HEU) went missing from a nuclear fuel manufacturing plant in the small town of Apollo, Pennsylvania. The Atomic Energy Commission (AEC) concluded in 1966 that there was about a 200-kilogram deficit between the U-235 in the form of HEU supplied to the plant and the amount returned in products to customers. After the AEC and its Oak Ridge office calculated the processing losses based on NUMEC’s records, they determined that the fate of about 100 kilograms of U-235 in the form of HEU remained unexplained. NUMEC paid for the missing material, but later disputed the AEC calculations, maintaining that the unexplained 100 kgs could be attributed to other processing losses. After decommissioning of the Apollo plant, more than 330 kgs of U-235 in the form of HEU were unaccounted for, with most of that deficit occurring while NUMEC ran the plant. For decades there have been allegations and suspicions that foreign agents, perhaps aided by American citizens, diverted a significant fraction of NUMEC’s unexplained uranium deficits to Israel for its nuclear-weapons program. Because of the high stakes involved, the affair has been clouded in denial and concealment for nearly a half century. Several recent books and articles, including a book by this Briefing Book’s primary author, Stealing the Atom Bomb: How Denial and Deception Armed Israel, have attempted to account for what is known and what is still a mystery.[1] Using recently declassified documents published today for the first time by the National Security Archive and the Nuclear Proliferation International History Project, this Electronic Briefing Book aims to make more widely available to the public the fascinating information that has been declassified so far.
Paul Merrell

Trump Plan to Gut Stream Protections Imperils Tap Water of 117 Million Americans | EWG - 0 views

  • The Trump administration is threatening to remove safeguards that protect the drinking water of more than one-third of Americans. Some 117 million people get at least some of their drinking water from small streams.[1] For 72 million people in 1,033 counties, more than half of their drinking water comes from small streams. Ensuring that their water is safe means keeping the water in these streams clean. (See map below. Click here for a more detailed interactive map.)
  • Right now, the Clean Water Act protects these streams from pollution. But this week President Trump issued an executive order directing Environmental Protection Agency Administrator Scott Pruitt to rescind or revise the Clean Water Rule, or replace it with a new rule. This critically important rule determines which streams, rivers and lakes are protected from pollution by the Clean Water Act. The rule also extends protection for millions of acres of wetlands that filter drinking water. Industry and agribusiness have been pushing for years to roll back the Clean Water Rule and protect only the biggest streams and rivers. Now they’ve found a friend in the Trump administration. Small streams are where big rivers start, and the best science confirms that dirty streams means even dirtier rivers. Millions of Americans drink water directly connected to 234,000 miles of small, potentially unprotected streams. In 21 different states, small streams provide drinking water for 1 million or more people. (See chart below.) More than 5 million people in each New York, Texas and Pennsylvania get drinking water from small streams, as do more than 3 million in each California, Georgia, Maryland, Ohio, North Carolina and Arizona.
  • President Trump’s executive order immediately threatens drinking water for millions of Americans, but it’s not the only threat. Dozens of lawsuits seeking to gut the Clean Water Rule have been filed by industry and agribusiness, and states catering to those interests. Congress could meddle with the Clean Water Act itself to deny protection to small streams and wetlands. The Clean Water Rule is a common-sense safeguard supported by a majority of Americans. It is supported by many cities and towns that depend on unpolluted drinking water sources and natural infrastructure like wetlands to filter pollutants and absorb floodwaters. Small businesses that rely on clean water and healthy wildlife habitats, such as craft breweries and outdoor recreation companies, also strongly support the Clean Water Rule. Undermining, weakening or rescinding this vital rule is a gift to corporate polluters and Big Ag, and a threat to public health and the environment.
Paul Merrell

Activists Take Credit for Notorious FBI Raid That Spilled Secrets-Forty-two Years Ago |... - 0 views

  • It’s a mystery I covered from the start and now it has been solved. A big breaking story this morning features startling revelations about the infamous raid by antiwar activists on the FBI office in Media, Pennsylvania, (yes, that’s the name) in 1971, on the night of the Ali-Frazier “fight of the century,” who are finally exposing themselves in a new book and film. The book is by the Washington Post reporter who received some of the leak files back then, Betty Medsger. The activists, none of them household names then or now, cleared out all the files there that day and this led to the first big scoops on illegal FBI surveillance and the notorious COINTELPRO program, which we covered so widely at Crawdaddy that decade. One of the perps even waved to Edward Snowden on the Today show today and said, “Hi, from one whistleblower to another.” And The New York Times has now posted a thirteen-minute video.
  • Of course, by 1971, there had been rumors and personal reports about undercover FBI snooping, including use of electronic surveillance, for years but with little black-and-white official evidence. Hell, we even had a break-in at the Crawdaddy office that seemed suspicious and, as a longtime (if minor) antiwar activist, I always figured I might have drawn some official attention. But the Media raid proved incredibly valuable, even as it made many of us more paranoid. Indeed, as NBC reports: Among the stolen files: plans to enhance “paranoia” among “New Left” groups by instilling fears that “there is an FBI agent behind every mailbox.” Another instructed agents in the Philadelphia area to monitor the “clientele” of “Afro-American type bookstores” and recruit informants among the “the Negro militant movement.” The raid and its results didn’t immediately stop COINTELPRO, then run by good old Deep Throat himself, Mark Felt.
  • the Media raid had finally produced some of the aims sought by the burglars. From NBC: “These documents were explosive,” said Medsger, who was the first reporter to write about them after receiving a batch of the files anonymously in the mail. Her book traces how the stolen files led to a landmark Senate investigation of intelligence and law enforcement agency abuses by the late Idaho Sen. Frank Church, and eventually to new Justice Department guidelines that barred the bureau from conducting investigations based on First Amendment protected political activity. After the burglary, said Medsger, “The FBI was never the same.” Glenn Greenwald weighs in on today’s revelations. He is, of course, supportive of the 1971 action.
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    The New York Times video is worth watching for its historical footage and the linked post by Glenn Greenwald adds valuable perspective about the failure of NYT and the LA Times to do anything with the documents. Only the Washington Post pushed the story. One might wonder if these days, any mainstream media might have covered the Snowden documents had The Guardian not told The Washington Post that the Guardian was going to run with the story regardless. 
Paul Merrell

Tomgram: Alfred McCoy, It's About Blackmail, Not National Security | TomDispatch - 0 views

  • For more than six months, Edward Snowden’s revelations about the National Security Agency (NSA) have been pouring out from the Washington Post, the New York Times, the Guardian, Germany’s Der Spiegel, and Brazil’s O Globo, among other places.  Yet no one has pointed out the combination of factors that made the NSA’s expanding programs to monitor the world seem like such a slam-dunk development in Washington.  The answer is remarkably simple.  For an imperial power losing its economic grip on the planet and heading into more austere times, the NSA’s latest technological breakthroughs look like a bargain basement deal when it comes to projecting power and keeping subordinate allies in line -- like, in fact, the steal of the century.  Even when disaster turned out to be attached to them, the NSA’s surveillance programs have come with such a discounted price tag that no Washington elite was going to reject them.
  • What exactly was the aim of such an unprecedented program of massive domestic and planetary spying, which clearly carried the risk of controversy at home and abroad? Here, an awareness of the more than century-long history of U.S. surveillance can guide us through the billions of bytes swept up by the NSA to the strategic significance of such a program for the planet’s last superpower. What the past reveals is a long-term relationship between American state surveillance and political scandal that helps illuminate the unacknowledged reason why the NSA monitors America’s closest allies. Not only does such surveillance help gain intelligence advantageous to U.S. diplomacy, trade relations, and war-making, but it also scoops up intimate information that can provide leverage -- akin to blackmail -- in sensitive global dealings and negotiations of every sort. The NSA’s global panopticon thus fulfills an ancient dream of empire. With a few computer key strokes, the agency has solved the problem that has bedeviled world powers since at least the time of Caesar Augustus: how to control unruly local leaders, who are the foundation for imperial rule, by ferreting out crucial, often scurrilous, information to make them more malleable.
  • Once upon a time, such surveillance was both expensive and labor intensive. Today, however, unlike the U.S. Army’s shoe-leather surveillance during World War I or the FBI’s break-ins and phone bugs in the Cold War years, the NSA can monitor the entire world and its leaders with only 100-plus probes into the Internet’s fiber optic cables. This new technology is both omniscient and omnipresent beyond anything those lacking top-secret clearance could have imagined before the Edward Snowden revelations began.  Not only is it unimaginably pervasive, but NSA surveillance is also a particularly cost-effective strategy compared to just about any other form of global power projection. And better yet, it fulfills the greatest imperial dream of all: to be omniscient not just for a few islands, as in the Philippines a century ago, or a couple of countries, as in the Cold War era, but on a truly global scale. In a time of increasing imperial austerity and exceptional technological capability, everything about the NSA’s surveillance told Washington to just “go for it.”  This cut-rate mechanism for both projecting force and preserving U.S. global power surely looked like a no-brainer, a must-have bargain for any American president in the twenty-first century -- before new NSA documents started hitting front pages weekly, thanks to Snowden, and the whole world began returning the favor.
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  • As the gap has grown between Washington’s global reach and its shrinking mailed fist, as it struggles to maintain 40% of world armaments (the 2012 figure) with only 23% of global gross economic output, the U.S. will need to find new ways to exercise its power far more economically. As the Cold War took off, a heavy-metal U.S. military -- with 500 bases worldwide circa 1950 -- was sustainable because the country controlled some 50% of the global gross product. But as its share of world output falls -- to an estimated 17% by 2016 -- and its social welfare costs climb relentlessly from 4% of gross domestic product in 2010 to a projected 18% by 2050, cost-cutting becomes imperative if Washington is to survive as anything like the planet’s “sole superpower.” Compared to the $3 trillion cost of the U.S. invasion and occupation of Iraq, the NSA’s 2012 budget of just $11 billion for worldwide surveillance and cyberwarfare looks like cost saving the Pentagon can ill-afford to forego. Yet this seeming “bargain” comes at what turns out to be an almost incalculable cost. The sheer scale of such surveillance leaves it open to countless points of penetration, whether by a handful of anti-war activists breaking into an FBI field office in Media, Pennsylvania, back in 1971 or Edward Snowden downloading NSA documents at a Hawaiian outpost in 2012.
  • In October 2001, not satisfied with the sweeping and extraordinary powers of the newly passed Patriot Act, President Bush ordered the National Security Agency to commence covert monitoring of private communications through the nation's telephone companies without the requisite FISA warrants. Somewhat later, the agency began sweeping the Internet for emails, financial data, and voice messaging on the tenuous theory that such “metadata” was “not constitutionally protected.” In effect, by penetrating the Internet for text and the parallel Public Switched Telephone Network (PSTN) for voice, the NSA had gained access to much of the world’s telecommunications. By the end of Bush’s term in 2008, Congress had enacted laws that not only retrospectively legalized these illegal programs, but also prepared the way for NSA surveillance to grow unchecked. Rather than restrain the agency, President Obama oversaw the expansion of its operations in ways remarkable for both the sheer scale of the billions of messages collected globally and for the selective monitoring of world leaders.
  • By 2012, the centralization via digitization of all voice, video, textual, and financial communications into a worldwide network of fiber optic cables allowed the NSA to monitor the globe by penetrating just 190 data hubs -- an extraordinary economy of force for both political surveillance and cyberwarfare.
  • With a few hundred cable probes and computerized decryption, the NSA can now capture the kind of gritty details of private life that J. Edgar Hoover so treasured and provide the sort of comprehensive coverage of populations once epitomized by secret police like East Germany’s Stasi. And yet, such comparisons only go so far. After all, once FBI agents had tapped thousands of phones, stenographers had typed up countless transcripts, and clerks had stored this salacious paper harvest in floor-to-ceiling filing cabinets, J. Edgar Hoover still only knew about the inner-workings of the elite in one city: Washington, D.C.  To gain the same intimate detail for an entire country, the Stasi had to employ one police informer for every six East Germans -- an unsustainable allocation of human resources. By contrast, the marriage of the NSA’s technology to the Internet’s data hubs now allows the agency’s 37,000 employees a similarly close coverage of the entire globe with just one operative for every 200,000 people on the planet
  • Through the expenditure of $250 million annually under its Sigint Enabling Project, the NSA has stealthily penetrated all encryption designed to protect privacy. “In the future, superpowers will be made or broken based on the strength of their cryptanalytic programs,” reads a 2007 NSA document. “It is the price of admission for the U.S. to maintain unrestricted access to and use of cyberspace.” By collecting knowledge -- routine, intimate, or scandalous -- about foreign leaders, imperial proconsuls from ancient Rome to modern America have gained both the intelligence and aura of authority necessary for dominion over alien societies. The importance, and challenge, of controlling these local elites cannot be overstated. During its pacification of the Philippines after 1898, for instance, the U.S. colonial regime subdued contentious Filipino leaders via pervasive policing that swept up both political intelligence and personal scandal. And that, of course, was just what J. Edgar Hoover was doing in Washington during the 1950s and 1960s.
  • Indeed, the mighty British Empire, like all empires, was a global tapestry woven out of political ties to local leaders or “subordinate elites” -- from Malay sultans and Indian maharajas to Gulf sheiks and West African tribal chiefs. As historian Ronald Robinson once observed, the British Empire spread around the globe for two centuries through the collaboration of these local leaders and then unraveled, in just two decades, when that collaboration turned to “non-cooperation.” After rapid decolonization during the 1960s transformed half-a-dozen European empires into 100 new nations, their national leaders soon found themselves the subordinate elites of a spreading American global imperium. Washington suddenly needed the sort of private information that could keep such figures in line. Surveillance of foreign leaders provides world powers -- Britain then, America now -- with critical information for the exercise of global hegemony. Such spying gave special penetrating power to the imperial gaze, to that sense of superiority necessary for dominion over others.  It also provided operational information on dissidents who might need to be countered with covert action or military force; political and economic intelligence so useful for getting the jump on allies in negotiations of all sorts; and, perhaps most important of all, scurrilous information about the derelictions of leaders useful in coercing their compliance.
  • In late 2013, the New York Times reported that, when it came to spying on global elites, there were “more than 1,000 targets of American and British surveillance in recent years,” reaching down to mid-level political actors in the international arena. Revelations from Edward Snowden’s cache of leaked documents indicate that the NSA has monitored leaders in some 35 nations worldwide -- including Brazilian president Dilma Rousseff, Mexican presidents Felipe Calderón and Enrique Peña Nieto, German Chancellor Angela Merkel, and Indonesia’s president Susilo Bambang Yudhoyono.  Count in as well, among so many other operations, the monitoring of “French diplomatic interests” during the June 2010 U.N. vote on Iran sanctions and “widespread surveillance” of world leaders during the Group 20 summit meeting at Ottawa in June 2010. Apparently, only members of the historic “Five Eyes” signals-intelligence alliance (Australia, Canada, New Zealand, and Great Britain) remain exempt -- at least theoretically -- from NSA surveillance. Such secret intelligence about allies can obviously give Washington a significant diplomatic advantage. During U.N. wrangling over the U.S. invasion of Iraq in 2002-2003, for example, the NSA intercepted Secretary-General Kofi Anan’s conversations and monitored the “Middle Six” -- Third World nations on the Security Council -- offering what were, in essence, well-timed bribes to win votes. The NSA’s deputy chief for regional targets sent a memo to the agency’s Five Eyes allies asking “for insights as to how membership is reacting to on-going debate regarding Iraq, plans to vote on any related resolutions [..., and] the whole gamut of information that could give U.S. policymakers an edge in obtaining results favorable to U.S. goals.”
  • Indicating Washington’s need for incriminating information in bilateral negotiations, the State Department pressed its Bahrain embassy in 2009 for details, damaging in an Islamic society, on the crown princes, asking: “Is there any derogatory information on either prince? Does either prince drink alcohol? Does either one use drugs?” Indeed, in October 2012, an NSA official identified as “DIRNSA,” or Director General Keith Alexander, proposed the following for countering Muslim radicals: “[Their] vulnerabilities, if exposed, would likely call into question a radicalizer’s devotion to the jihadist cause, leading to the degradation or loss of his authority.” The agency suggested that such vulnerabilities could include “viewing sexually explicit material online” or “using a portion of the donations they are receiving… to defray personal expenses.” The NSA document identified one potential target as a “respected academic” whose “vulnerabilities” are “online promiscuity.”
  • Just as the Internet has centralized communications, so it has moved most commercial sex into cyberspace. With an estimated 25 million salacious sites worldwide and a combined 10.6 billion page views per month in 2013 at the five top sex sites, online pornography has become a global business; by 2006, in fact, it generated $97 billion in revenue. With countless Internet viewers visiting porn sites and almost nobody admitting it, the NSA has easy access to the embarrassing habits of targets worldwide, whether Muslim militants or European leaders. According to James Bamford, author of two authoritative books on the agency, “The NSA's operation is eerily similar to the FBI's operations under J. Edgar Hoover in the 1960s where the bureau used wiretapping to discover vulnerabilities, such as sexual activity, to ‘neutralize’ their targets.”
  • Indeed, whistleblower Edward Snowden has accused the NSA of actually conducting such surveillance.  In a December 2013 letter to the Brazilian people, he wrote, “They even keep track of who is having an affair or looking at pornography, in case they need to damage their target's reputation.” If Snowden is right, then one key goal of NSA surveillance of world leaders is not U.S. national security but political blackmail -- as it has been since 1898. Such digital surveillance has tremendous potential for scandal, as anyone who remembers New York Governor Eliot Spitzer’s forced resignation in 2008 after routine phone taps revealed his use of escort services; or, to take another obvious example, the ouster of France’s budget minister Jérôme Cahuzac in 2013 following wire taps that exposed his secret Swiss bank account. As always, the source of political scandal remains sex or money, both of which the NSA can track with remarkable ease.
  • By starting a swelling river of NSA documents flowing into public view, Edward Snowden has given us a glimpse of the changing architecture of U.S. global power. At the broadest level, Obama’s digital “pivot” complements his overall defense strategy, announced in 2012, of reducing conventional forces while expanding into the new, cost-effective domains of space and cyberspace. While cutting back modestly on costly armaments and the size of the military, President Obama has invested billions in the building of a new architecture for global information control. If we add the $791 billion expended to build the Department of Homeland Security bureaucracy to the $500 billion spent on an increasingly para-militarized version of global intelligence in the dozen years since 9/11, then Washington has made a $1.2 trillion investment in a new apparatus of world power.
  • So formidable is this security bureaucracy that Obama’s recent executive review recommended the regularization, not reform, of current NSA practices, allowing the agency to continue collecting American phone calls and monitoring foreign leaders into the foreseeable future. Cyberspace offers Washington an austerity-linked arena for the exercise of global power, albeit at the cost of trust by its closest allies -- a contradiction that will bedevil America’s global leadership for years to come. To update Henry Stimson: in the age of the Internet, gentlemen don't just read each other’s mail, they watch each other’s porn. Even if we think we have nothing to hide, all of us, whether world leaders or ordinary citizens, have good reason to be concerned.
Paul Merrell

Court Rules Feds Need Warrant to Access Drug Prescriptions Database | American Civil Li... - 0 views

  • In a significant win for the privacy rights of anyone who has ever gotten a drug prescription, a federal judge in Oregon ruled yesterday that the DEA needs a warrant to search confidential prescription records. Oregon, like 48 other states, has a Prescription Drug Monitoring Program (PDMP), which tracks patients’ prescriptions for medications used to treat a long list of sensitive medical conditions. Although Oregon law requires police to get a warrant from a judge before searching prescription records in the database, the DEA has been requesting records using administrative subpoenas, which do not involve judicial authorization or probable cause. After the State of Oregon sued the DEA over this practice, the ACLU and ACLU of Oregon joined the suit on behalf of four patients and a doctor in the state. Last month, we argued in court that the DEA is violating the Fourth Amendment by bypassing the Constitution’s warrant requirement when seeking private prescription records. Yesterday, the court agreed. The court’s ruling is the first time a judge has held that law enforcement must get a probable cause warrant to access confidential prescription records from a state database in a criminal investigation. The opinion is significant for several reasons.
  • First, the court soundly rejected the DEA’s extreme argument that people lose their Fourth Amendment privacy rights in their medical information when they engage in confidential discussions with their doctor and pharmacist about their illnesses and treatment decisions. The federal government had argued that the “third party doctrine” applied, comparing confidential prescription records to electricity consumption records, bank records, and other categories of information held by third-party companies, for which courts have said police don’t need a warrant. The judge batted this argument aside, explaining that prescription records are “more inherently personal or private than bank records, and are entitled to and treated with a heightened expectation of privacy.” As the court held: “Although there is not an absolute right to privacy in prescription information, as patients must expect that physicians, pharmacists, and other medical personnel can and must access their records, it is more than reasonable for patients to believe that law enforcement agencies will not have unfettered access to their records.” More importantly, this ruling fits into a series of recent opinions calling into question the continuing vitality of the third party doctrine in modern society. As Justice Sotomayor wrote in United States v. Jonestwo years ago, “it may be necessary to reconsider the premise that an individual has no reasonable expectation of privacy in information voluntarily disclosed to third parties. This approach is ill suited to the digital age, in which people reveal a great deal of information about themselves to third parties in the course of carrying out mundane tasks.” This sentiment was echoed by the federal judge who ruled last year that the NSA’s bulk telephone metadata program violates the Fourth Amendment. The Oregon case is another blow to the third party doctrine’s shaky foundation.
  • In addition, although yesterday’s ruling is only binding within Oregon, it will be persuasive precedent for courts evaluating law enforcement’s use of subpoenas to obtain private prescription records—and similar information—around the country. The case is a reminder to the DEA and other law enforcement agencies that they are not above the law, and that they must comply with the Fourth Amendment’s warrant requirement when seeking sensitive information in criminal investigations. Finally, the case should add momentum to a movement within state legislatures to amend PDMP statutes to require police to get a warrant for prescription records. Ten states currently require a warrant as a matter of state law (Rhode Island was the most recent state to add this requirement, last year). The Pennsylvania House has passed legislation creating a warrant requirement for that state’s PDMP, and is waiting for the state senate to act. The Florida legislature may update the privacy protections for its PDMP this year. Action by state legislatures will send a strong message to the DEA that it should be getting warrants everywhere, not just in Oregon.
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    A case to watch as it wends it way through the appellate process. A very big win for the ACLU, with major implications for federal intelligence gathering in general. 
Paul Merrell

Exposed: Google's "Smart Home" Surveillance Plans, or, How To Not Be Colonized | TBYP - 0 views

  • Two weeks ago, the New York Times’ truth-humor strip on “The Home of the Future” came on the heels of Google’s purchase of ‘smart thermostat’ manufacturer Nest for $3.2 Billion.  With power utility commissions such as California already stating their intention to “expand third-party access” to in-home data, the perfect storm is brewing for Google’s mission of making you their product – even in your own home. For context, this is the same Google whose executive chairman, Eric Schmidt, told MSNBC: “If you have something that you don’t want anyone to know, maybe you shouldn’t be doing it in the first place.”
  • So where does a ‘smart thermostat’ fit in the current corporatist drive for total in-home surveillance? For the last couple of years, utilities around the globe have all been touting their new metering systems with buzzwords such as ‘smart’, ‘advanced’, ‘upgraded’, or ‘modernized’.  All rhetoric aside, these devices are intended to integrate with all appliances in your home to form an inescapable wireless data-mining dragnet, dubbed as the “home area network”, with your HVAC and likely other in-home systems overseen by spy-giant Google, if they get their way. As we’ve seen, even former CIA director David Patraeus was publicly frothing over having the ability to spy through ‘smart’ appliances, intended to wirelessly report back to the meter continuously, while receiving energy-use dictates from the meter. According to a US Congressional Research Report:
  • “With smart meters, police will have access to data that might be used to track residents’ daily lives and routines while in their homes, including their eating, sleeping, and showering habits, what appliances they use and when, and whether they prefer the television to the treadmill, among a host of other details.” Smart grid planners and working groups have even laid these aims out in their internal roadmaps, citing goals such as “new tools for mining data and intel” and “data mining and analytics to become core competency” (see slide 17).
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  • Despite pilot programs indicating no energy savings and mounting opposition now from several hundred activist groups, federal governments such as the US are continuing with their push to incentivize utilities to push forward ‘smart’ grid deployment. Apparently, having a piece of the $11 Billion taxpayer-funded ‘smart’ grid pie, pushed through by the Obama Administration immediately following the 2008 election, is sufficient motivation for utility executives to steamroll forward despite the growing resistance. As an example, PECO, a major utility in Pennsylvania, is slated to receive $200 Million in stimulus funding if they can deploy 600,000 ‘smart’ meters by April 2014. Significantly, anyone can choose to protect their in-home rights by saying no to the deployment of a ‘smart’ meter on their home.  There are no legal requirements in any country or region for an energy customer to accept a ‘smart’ meter.
  • So what can be done to protect rights?  While people cannot vote to prevent corporations from making products such as data-mining thermostats appliances, they do have a voice as utilities try their best to deploy the home-colonizing meters.  Public resistance to ‘smart’ meter deployments has predictably been considerable, as people are learning about not only surveillance capabilities, but also skyrocketing electricity costs, time-of-use billing, risk of fires, home hackability, electrical quality degradation and functional impairments from pulsed microwave radiation — amazingly, all being linked to the new utility metering system.
  • However, utilities are using tactics of intimidation, propaganda, and tacit acceptance – which means that unless you said a clear “no”, they assume a “yes.” In some cases even with a homeowner’s refusal, utilities are forcibly deploying anyway, apparently assuming the liability for doing so, risking litigation. So Google has played their hand with the $3.2 Billion purchase of Nest, desiring to capture the worldwide ‘smart’ home data-mining market, and praying to the all-spying-eye that people will stay tethered to their ‘smart’ wireless toys as their rights roll swiftly towards a cliff.  But will awareness eventually reach a game-changing crescendo?  It seems as though the potential exists. If we want to experience a future other than being ruled by technocrats, now is the time to speak up – even if facing the situation isn’t convenient.  People simply need to know the facts. As stated by former Apple executive Jeffrey Armstrong in our film Take Back Your Power, the question of whether homes will remain free of invasive ‘smart’ metering and appliance technology is “a test case for a technological democracy, if I have ever seen one.” 
Paul Merrell

Native Americans say US violated human rights - 0 views

  • A Native American group is asking the international community to charge the United States with human rights violations in hopes of getting help with a land claim. The Onondaga Indian Nation says it plans to file a petition at the Organization of American States on Tuesday, seeking human rights violations against the United States government. It wants the Inter-American Commission on Human Rights to declare that the U.S. government's decision not to hear its lawsuit asking for the return of 2.5 million acres in upstate New York to be violations of international human rights agreements. The nation has argued that about 4,000 square miles in 11 upstate New York counties stretching from Pennsylvania to Canada was illegally taken through a series of bogus treaties. More than 875,000 people live in the area, which includes Syracuse and other cities. U.S. courts have refused to hear the lawsuit asking for the return of their land, with the Supreme Court turning away a final petition in October.
  • The group says it is not seeking monetary damages, eviction of residents or rental payments. Instead, it wants a declaration that the land continues to belong to the Onondagas and that federal treaties were violated when it was taken away. Onondaga leaders have said they would use their claim to force the cleanup of hazardous, polluted sites like Onondaga Lake. The petition against the United States was brought by the Onondaga Nation and the Haudenosaunee Confederacy, which is made up of the Onondaga, Mohawk, Oneida, Cayuga and Seneca Nations.
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    Should be an interesting case to watch in the OAS. Its Commission's rulings are non-binding on national governments but dramatically increase bargaining leverage. The Commission has a history of using harsh words when nations overstep their bounds in regard to aboriginal (and other human) rights. And the Onondagas are armed with treaty rights as well. The U.S., of course, has a long history of ignoring its treaties with Native American tribes, notwithstanding that, as treaties, they are the "law of this land."  
Paul Merrell

Turkey: 5 Arrested Over Search of Syria-Bound Trucks - NYTimes.com - 0 views

  • Turkey arrested four prosecutors and a gendarme officer on Wednesday after they tried to search Syria-bound trucks, belonging to the state intelligence agency, that they suspected of illegally carrying arms for rebels fighting Syria’s government. The news media said the arrests were part of a crackdown by President Recep Tayyip Erdogan on followers of a Pennsylvania-based cleric he accuses of trying to oust him. Seventeen army officers were held last month in the same case. CNN Turk said that the five arrested Wednesday were charged with trying to “topple or incapacitate” the government. The country’s M.I.T. intelligence agency, regarded as strongly loyal to Mr. Erdogan, refused to allow the search last year of the trucks in Adana Province, in Turkey’s south. Officials in Ankara said they carried humanitarian aid. Mr. Erdogan is opposed to President Bashar al-Assad of Syria, but Turkey denies it has delivered arms to Islamist militants.
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    Sure. And I deny that I was ever born.
Gary Edwards

The obscure legal system that lets corporations sue countries | Claire Provost and Matt... - 0 views

  • Every year on 15 September, thousands of Salvadorans celebrate the date when much of Central America gained independence from Spain. Fireworks are set off and marching bands parade through villages across the country. But, last year, in the town of San Isidro, in Cabañas, the festivities had a markedly different tone. Hundreds had gathered to protest against the mine. Gold mines often use cyanide to separate gold from ore, and widespread concern over already severe water contamination in El Salvador has helped fuel a powerful movement determined to keep the country’s minerals in the ground. In the central square, colourful banners were strung up, calling on OceanaGold to drop its case against the country and leave the area. Many were adorned with the slogan, “No a la mineria, Si a la vida” (No to mining, Yes to life). On the same day, in Washington DC, Parada gathered his notes and shuffled into a suite of nondescript meeting rooms in the World Bank’s J building, across the street from its main headquarters on Pennsylvania Avenue. This is the International Centre for the Settlement of Investment Disputes (ICSID): the primary institution for handling the cases that companies file against sovereign states. (The ICSID is not the sole venue for such cases; there are similar forums in London, Paris, Hong Kong and the Hague, among others.) The date of the hearing was not a coincidence, Parada said. The case has been framed in El Salvador as a test of the country’s sovereignty in the 21st century, and he suggested that it should be heard on Independence Day. “The ultimate question in this case,” he said, “is whether a foreign investor can force a government to change its laws to please the investor as opposed to the investor complying with the laws they find in the country.”
  • Most international investment treaties and free-trade deals grant foreign investors the right to activate this system, known as investor-state dispute settlement (ISDS), if they want to challenge government decisions affecting their investments. In Europe, this system has become a sticking point in negotiations over the controversial Transatlantic Trade and Investment Partnership (TTIP) deal proposed between the European Union and the US, which would massively extend its scope and power and make it harder to challenge in the future. Both France and Germany have said that they want access to investor-state dispute settlement removed from the TTIP treaty currently under discussion. Investors have used this system not only to sue for compensation for alleged expropriation of land and factories, but also over a huge range of government measures, including environmental and social regulations, which they say infringe on their rights. Multinationals have sued to recover money they have already invested, but also for alleged lost profits and “expected future profits”. The number of suits filed against countries at the ICSID is now around 500 – and that figure is growing at an average rate of one case a week. The sums awarded in damages are so vast that investment funds have taken notice: corporations’ claims against states are now seen as assets that can be invested in or used as leverage to secure multimillion-dollar loans. Increasingly, companies are using the threat of a lawsuit at the ICSID to exert pressure on governments not to challenge investors’ actions.
  • “I had absolutely no idea this was coming,” Parada said. Sitting in a glass-walled meeting room in his offices, at the law firm Foley Hoag, he paused, searching for the right word to describe what has happened in his field. “Rogue,” he decided, finally. “I think the investor-state arbitration system was created with good intentions, but in practice it has gone completely rogue.”
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  • The quiet village of Moorburg in Germany lies just across the river from Hamburg. Past the 16th-century church and meadows rich with wildflowers, two huge chimneys spew a steady stream of thick, grey smoke into the sky. This is Kraftwerk Moorburg, a new coal-fired power plant – the village’s controversial next-door neighbour. In 2009, it was the subject of a €1.4bn investor-state case filed by Vattenfall, the Swedish energy giant, against the Federal Republic of Germany. It is a prime example of how this powerful international legal system, built to protect foreign investors in developing countries, is now being used to challenge the actions of European governments as well. Since the 1980s, German investors have sued dozens of countries, including Ghana, Ukraine and the Philippines, at the World Bank’s Centre in Washington DC. But with the Vattenfall case, Germany found itself in the dock for the first time. The irony was not lost on those who considered Germany to be the grandfather of investor-state arbitration: it was a group of German businessmen, in the late 1950s, who first conceived of a way to protect their overseas investments as a wave of developing countries gained independence from European colonial powers. Led by Deutsche Bank chairman Hermann Abs, they called their proposal an “international magna carta” for private investors.
  • In the 1960s, the idea was taken up by the World Bank, which said that such a system could help the world’s poorer countries attract foreign capital. “I am convinced,” the World Bank president George Woods said at the time, “that those … who adopt as their national policy a welcome [environment] for international investment – and that means, to mince no words about it, giving foreign investors a fair opportunity to make attractive profits – will achieve their development objectives more rapidly than those who do not.” At the World Bank’s 1964 annual meeting in Tokyo, it approved a resolution to set up a mechanism for handling investor-state cases. The first line of the ICSID Convention’s preamble sets out its goal as “international cooperation for economic development”. There was sharp opposition to this system from its inception, with a bloc of developing countries warning that it would undermine their sovereignty. A group of 21 countries – almost every Latin American country, plus Iraq and the Philippines – voted against the proposal in Tokyo. But the World Bank moved ahead regardless. Andreas Lowenfeld, an American legal academic who was involved in some of these early discussions, later remarked: “I believe this was the first time that a major resolution of the World Bank had been pressed forward with so much opposition.”
  • now governments are discovering, too late, the true price of that confidence. The Kraftwerk Moorburg plant was controversial long before the case was filed. For years, local residents and environmental groups objected to its construction, amid growing concern over climate change and the impact the project would have on the Elbe river. In 2008, Vattenfall was granted a water permit for its Moorburg project, but, in response to local pressure, local authorities imposed strict environmental conditions to limit the utility’s water usage and its impact on fish. Vattenfall sued Hamburg in the local courts. But, as a foreign investor, it was also able to file a case at the ICSID. These environmental measures, it said, were so strict that they constituted a violation of its rights as guaranteed by the Energy Charter Treaty, a multilateral investment agreement signed by more than 50 countries, including Sweden and Germany. It claimed that the environmental conditions placed on its permit were so severe that they made the plant uneconomical and constituted acts of indirect expropriation.
  • With the rapid growth in these treaties – today there are more than 3,000 in force – a specialist industry has developed in advising companies how best to exploit treaties that give investors access to the dispute resolution system, and how to structure their businesses to benefit from the different protections on offer. It is a lucrative sector: legal fees alone average $8m per case, but they have exceeded $30m in some disputes; arbitrators’ fees at start at $3,000 per day, plus expenses.
  • Vattenfall v Germany ended in a settlement in 2011, after the company won its case in the local court and received a new water permit for its Moorburg plant – which significantly lowered the environmental standards that had originally been imposed, according to legal experts, allowing the plant to use more water from the river and weakening measures to protect fish. The European Commission has now stepped in, taking Germany to the EU Court of Justice, saying its authorisation of the Moorburg coal plant violated EU environmental law by not doing more to reduce the risk to protected fish species, including salmon, which pass near the plant while migrating from the North Sea. A year after the Moorburg case closed, Vattenfall filed another claim against Germany, this time over the federal government’s decision to phase out nuclear power. This second suit – for which very little information is available in the public domain, despite reports that the company is seeking €4.7bn from German taxpayers – is still ongoing. Roughly one third of all concluded cases filed at the ICSID are recorded as ending in “settlements”, which – as the Moorburg dispute shows – can be very profitable for investors, though their terms are rarely fully disclosed.
  • “It was a total surprise for us,” the local Green party leader Jens Kerstan laughed, in a meeting at his sunny office in Hamburg last year. “As far as I knew, there were some [treaties] to protect German companies in the [developing] world or in dictatorships, but that a European company can sue Germany, that was totally a surprise to me.”
  • While a tribunal cannot force a country to change its laws, or give a company a permit, the risk of massive damages may in some cases be enough to persuade a government to reconsider its actions. The possibility of arbitration proceedings can be used to encourage states to enter into meaningful settlement negotiations.
  • A small number of countries are now attempting to extricate themselves from the bonds of the investor-state dispute system. One of these is Bolivia, where thousands of people took to the streets of the country’s third-largest city, Cochabamba, in 2000, to protest against a dramatic hike in water rates by a private company owned by Bechtel, the US civil engineering firm. During the demonstrations, the Bolivian government stepped in and terminated the company’s concession. The company then filed a $50m suit against Bolivia at the ICSID. In 2006, following a campaign calling for the case to be thrown out, the company agreed to accept a token payment of less than $1. After this expensive case, Bolivia cancelled the international agreements it had signed with other states giving their investors access to these tribunals. But getting out of this system is not easily done. Most of these international agreements have sunset clauses, under which their provisions remain in force for a further 10 or even 20 years, even if the treaties themselves are cancelled.
  • There are now thousands of international investment agreements and free-trade acts, signed by states, which give foreign companies access to the investor-state dispute system, if they decide to challenge government decisions. Disputes are typically heard by panels of three arbitrators; one selected by each side, and the third agreed upon by both parties. Rulings are made by majority vote, and decisions are final and binding. There is no appeals process – only an annulment option that can be used on very limited grounds. If states do not pay up after the decision, their assets are subject to seizure in almost every country in the world (the company can apply to local courts for an enforcement order).
  • While there is no equivalent of legal aid for states trying to defend themselves against these suits, corporations have access to a growing group of third-party financiers who are willing to fund their cases against states, usually in exchange for a cut of any eventual award.
  • Increasingly, these suits are becoming valuable even before claims are settled. After Rurelec filed suit against Bolivia, it took its case to the market and secured a multimillion-dollar corporate loan, using its dispute with Bolivia as collateral, so that it could expand its business. Over the last 10 years, and particularly since the global financial crisis, a growing number of specialised investment funds have moved to raise money through these cases, treating companies’ multimillion-dollar claims against states as a new “asset class”.
  • El Salvador has already spent more than $12m defending itself against Pacific Rim, but even if it succeeds in beating the company’s $284m claim, it may never recover these costs. For years Salvadoran protest groups have been calling on the World Bank to initiate an open and public review of ICSID. To date, no such study has been carried out. In recent years, a number of ideas have been mooted to reform the international investor-state dispute system – to adopt a “loser pays” approach to costs, for example, or to increase transparency. The solution may lie in creating an appeals system, so that controversial judgments can be revisited.
  • Brazil has never signed up to this system – it has not entered into a single treaty with these investor-state dispute provisions – and yet it has had no trouble attracting foreign investment.
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    "Luis Parada's office is just four blocks from the White House, in the heart of K Street, Washington's lobbying row - a stretch of steel and glass buildings once dubbed the "road to riches", when influence-peddling became an American growth industry. Parada, a soft-spoken 55-year-old from El Salvador, is one of a handful of lawyers in the world who specialise in defending sovereign states against lawsuits lodged by multinational corporations. He is the lawyer for the defence in an obscure but increasingly powerful field of international law - where foreign investors can sue governments in a network of tribunals for billions of dollars. Fifteen years ago, Parada's work was a minor niche even within the legal business. But since 2000, hundreds of foreign investors have sued more than half of the world's countries, claiming damages for a wide range of government actions that they say have threatened their profits. In 2006, Ecuador cancelled an oil-exploration contract with Houston-based Occidental Petroleum; in 2012, after Occidental filed a suit before an international investment tribunal, Ecuador was ordered to pay a record $1.8bn - roughly equal to the country's health budget for a year. (Ecuador has logged a request for the decision to be annulled.) Parada's first case was defending Argentina in the late 1990s against the French conglomerate Vivendi, which sued after the Argentine province of Tucuman stepped in to limit the price it charged people for water and wastewater services. Argentina eventually lost, and was ordered to pay the company more than $100m. Now, in his most high-profile case yet, Parada is part of the team defending El Salvador as it tries to fend off a multimillion-dollar suit lodged by a multinational mining company after the tiny Central American country refused to allow it to dig for gold."
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