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Paul Merrell

New Saudi King Tied to Al Qaeda, Bin Laden and Islamic Terrorism Washington's Blog - 0 views

  • We’ve long noted that Saudi Arabia is a huge supporter of terrorism. But the new Saudi king is particularly bad. Investors Business Daily notes: King Salman has a history of funding al-Qaida, and his son has been accused of knowing in advance about the 9/11 attacks. *** Salman once ran a Saudi charity tied to al-Qaida and has been named a defendant in two lawsuits accusing the Saudi royal family of helping the 9/11 terrorists, one of which the U.S. Supreme Court recently let move forward after years of being blocked by the State Department and the well-funded Saudi lobby. Plaintiffs have provided an enormous amount of material to source their accusations against Salman. Here’s why his ascension to the throne is not good news, especially as the terrorism threat grows: • Salman once headed the Saudi High Commission for Relief to Bosnia and Herzegovina, which served as a key charitable front for al-Qaida in the Balkans. • According to a United Nations-sponsored investigation, Salman in the 1990s transferred more than $120 million from commission accounts under his control — as well as his own personal accounts — to the Third World Relief Agency, another al-Qaida front and the main pipeline for illegal weapons shipments to al-Qaida fighters in the Balkans.
  • • A U.N. audit found that the money was transferred following meetings with Salman, transfers that had no legitimate “humanitarian” purpose. • Former CIA officer Robert Baer has reported that an international raid of Saudi High Commission offices found evidence of terrorist plots against America. • Baer also revealed that Salman “personally approved” distribution of funds from the International Islamic Relief Organization, which also has provided material support to al-Qaida. • A recent Gulf Institute report says Salman and former Saudi intelligence chief Prince Turki al-Faisal knowingly aided and abetted al-Qaida in the run-up to 9/11. • Salman works closely with Saudi clerics Saleh al-Moghamsy, a radical anti-Semite, and Safar Hawali, a one-time mentor of Osama bin Laden, according to the Washington Free Beacon. • In “Why America Slept,” author Gerald Posner claimed that Salman’s son Ahmed bin Salman also had ties to al-Qaida and even advance knowledge of the Sept. 11, 2001 attacks.
  • David Andrew Weinberg provides a superb round-up of Salman’s ties to terrorism and extremism: As former CIA official Bruce Riedel astutely pointed out, Salman was the regime’s lead fundraiser for mujahideen, or Islamic holy warriors, in Afghanistan in the 1980s, as well as for Bosnian Muslims during the Balkan struggles of the 1990s. In essence, he served as Saudi Arabia’s financial point man for bolstering fundamentalist proxies in war zones abroad. As longtime governor of Riyadh, Salman was often charged with maintaining order and consensus among members of his family. Salman’s half brother King Khalid (who ruled from 1975 to 1982) therefore looked to him early on in the Afghan conflict to use these family contacts for international objectives, appointing Salman to run the fundraising committee that gathered support from the royal family and other Saudis to support the mujahideen against the Soviets. Riedel writes that in this capacity, Salman “work[ed] very closely with the kingdom’s Wahhabi clerical establishment.” Another CIA officer who was stationed in Pakistan in the late 1980s estimates that private Saudi donations during that period reached between $20 million and $25 million every month. And as Rachel Bronson details in her book, Thicker Than Oil: America’s Uneasy Partnership With Saudi Arabia, Salman also helped recruit fighters for Abdul Rasul Sayyaf, an Afghan Salafist fighter who served as a mentor to both Osama bin Laden and 9/11 mastermind Khalid Sheikh Mohammed.
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  • Reprising this role in Bosnia, Salman was appointed by his full brother and close political ally King Fahd to direct the Saudi High Commission for Relief of Bosnia and Herzegovina (SHC) upon its founding in 1992. Through the SHC, Salman gathered donations from the royal family for Balkan relief, supervising the commission until its until its recent closure in 2011. By 2001, the organization had collected around $600 million — nominally for relief and religious purposes, but money that allegedly also went to facilitating arms shipments, despite a U.N. arms embargo on Bosnia and other Yugoslav successor states from 1991 to 1996. And what kind of supervision did Salman exercise over this international commission? In 2001, NATO forces raided the SHC’s Sarajevo offices, discovering a treasure trove of terrorist materials: before-and-after photographs of al Qaeda attacks, instructions on how to fake U.S. State Department badges, and maps marked to highlight government buildings across Washington. The Sarajevo raid was not the first piece of evidence that the SHC’s work went far beyond humanitarian aid. Between 1992 and 1995, European officials tracked roughly $120 million in donations from Salman’s personal bank accounts and from the SHC to a Vienna-based Bosnian aid organization named the Third World Relief Agency (TWRA). Although the organization claimed to be focused on providing humanitarian relief, Western intelligence agencies estimated that the TWRA actually spent a majority of its funds arming fighters aligned with the Bosnian government.
  • A defector from al Qaeda called to testify before the United Nations, and who gave a deposition for lawyers representing the families of 9/11 victims, alleged that both Salman’s SHC and the TWRA provided essential support to al Qaeda in Bosnia, including to his 107-man combat unit. In a deposition related to the 9/11 case, he stated that the SHC “participated extensively in supporting al Qaida operations in Bosnia” and that the TWRA “financed, and otherwise supported” the terrorist group’s fighters. The SHC’s connection to terrorist groups has long been scrutinized by U.S. intelligence officials as well. The U.S. government’s Joint Task Force Guantanamo once included the Saudi High Commission on its list of suspected “terrorist and terrorist support entities.” The Defense Intelligence Agency also once accused the Saudi High Commission of shipping both aid and weapons to Mohamed Farrah Aidid, the al Qaeda-linked Somali warlord depicted as a villain in the movie Black Hawk Down. Somalia was subject to a United Nations arms embargo starting in January 1992. *** The board of trustees for the Prince Salman Youth Center, which Salman himself chairs, today includes Saleh Abdullah Kamel, a Saudi billionaire whose name showed up on a purported list of al Qaeda’s earliest supporters known as the “golden chain.” (The Wall Street Journal reported that Kamel “denies supporting terror.”) But as the United States sought to shut down Saudi charities with ties to terrorism in the aftermath of the 9/11 attacks, Kamel and Salman both condemned the effort as an anti-Islamic witch hunt.
  • In 1995, US aid worker William Jefferson is killed in Bosnia. One of the likely suspects, Ahmed Zuhair Handala, is linked to the SHC. He also is let go, despite evidence linking him to massacres of civilians in Bosnia. [Schindler, 2007, pp. 263-264] In 1997, a Croatian apartment building is bombed, and Handala and two other SHC employees are suspected of the bombing. They escape, but Handala will be captured after 9/11 and sent to Guantanamo prison. [Schindler, 2007, pp. 266] In 1997, SHC employee Saber Lahmar is arrested for plotting to blow up the US embassy in Saravejo. He is convicted, but pardoned and released by the Bosnian government two years later. He will be arrested again in 2002 for involvement in an al-Qaeda plot in Bosnia and sent to Guantanamo prison (see January 18, 2002). By 1996, NSA wiretaps reveal that Prince Salman is funding Islamic militants using charity fronts (Between 1994 and July 1996).
  • History Commons adds important details: By 1994, if not earlier, the NSA is collecting electronic intercepts of conversations between Saudi Arabian royal family members. Journalist Seymour Hersh will later write, “according to an official with knowledge of their contents, the intercepts show that the Saudi government, working through Prince Salman [bin Abdul Aziz], contributed millions to charities that, in turn, relayed the money to fundamentalists. ‘We knew that Salman was supporting all of the causes,’ the official told me.” By July 1996 or soon after, US intelligence “had more than enough raw intelligence to conclude… bin Laden [was] receiving money from prominent Saudis.” [Hersh, 2004, pp. 324, 329-330] One such alleged charity front linked to Salman is the Saudi High Commission in Bosnia (see 1996 and After). Prince Salman has long been the governor of Riyadh province. At the time, he is considered to be about fourth in line to be king of Saudi Arabia. His son Prince Ahmed bin Salman will later be accused of having connections with al-Qaeda leader Abu Zubaida (see Early April 2002). [PBS, 10/4/2004] It appears this surveillance of Saudi royals will come to an end in early 2001 (see (February-March 2001)).
  • Author Roland Jacquard will later claim that in 1996, al-Qaeda revives its militant network in Bosnia in the wake of the Bosnian war and uses the Saudi High Commission (SHC) as its main charity front to do so. [Jacquard, 2002, pp. 69] This charity was founded in 1993 by Saudi Prince Salman bin Abdul-Aziz and is so closely linked to and funded by the Saudi government that a US judge will later render it immune to a 9/11-related lawsuit after concluding that it is an organ of the Saudi government. [New York Law Journal, 9/28/2005] In 1994, British aid worker Paul Goodall is killed in Bosnia execution-style by multiple shots to the back of the head. A SHC employee, Abdul Hadi al-Gahtani, is arrested for the murder and admits the gun used was his, but the Bosnian government lets him go without a trial. Al-Gahtani will later be killed fighting with al-Qaeda and the Taliban in Afghanistan. [Schindler, 2007, pp. 143-144; Schindler is a professor at the U.S. Army War College] In 1995, the Bosnian Ministry of Finance raids SHC’s offices and discovers documents that show SHC is “clearly a front for radical and terrorism-related activities.” [Burr and Collins, 2006, pp. 145]
  • In November 2002, Prince Salman patronized a fundraising gala for three Saudi charities under investigation by Washington: the International Islamic Relief Organization, al-Haramain Foundation, and the World Assembly of Muslim Youth. Since 9/11, all three organizations have had branches shuttered or sanctioned over allegations of financially supporting terrorism. That same month, Salman cited his experience on the boards of charitable societies, asserting that “it is not the responsibility of the kingdom” if others exploit Saudi donations for terrorism. *** The new king has also embraced Saudi cleric Saleh al-Maghamsi, an Islamic supremacist who declared in 2012 that Osama bin Laden had more “sanctity and honor in the eyes of Allah,” simply for being a Muslim, than “Jews, Christians, Zoroastrians, apostates, and atheists,” whom he described by nature as “infidels.” That didn’t put an end to Salman’s ties to Maghamsi, however. The new Saudi king recently served as head of the supervisory board for a Medina research center directed by Maghamsi. A year after Maghamsi’s offensive comments, Salman sponsored and attended a large cultural festival organized by the preacher. Maghamsi also advises two of Salman’s sons ….
  • A 1996 CIA report mentions, “We continue to have evidence that even high ranking members of the collecting or monitoring agencies in Saudi Arabia, Kuwait, and Pakistan – such as the Saudi High Commission – are involved in illicit activities, including support for terrorists” (see January 1996). Jacquard claims that most of the leadership of the SHC supports bin Laden. The SHC, while participating in some legitimate charitable functions, uses its cover to ship illicit goods, drugs, and weapons in and out of Bosnia. In May 1997, a French military report concludes: ”(T)he Saudi High Commission, under cover of humanitarian aid, is helping to foster the lasting Islamization of Bosnia by acting on the youth of the country. The successful conclusion of this plan would provide Islamic fundamentalism with a perfectly positioned platform in Europe and would provide cover for members of the bin Laden organization.” [Jacquard, 2002, pp. 69-71] However, the US will take no action until shortly after 9/11, when it will lead a raid on the SHC’s Bosnia offices. Incriminating documents will be found, including information on how to counterfeit US State Department ID badges, and handwritten notes about meetings with bin Laden. Evidence of a planned attack using crop duster planes is found as well. [Schindler, 2007, pp. 129, 284]
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    So the U.S. invades Afghanistan and Iraq instead of Saudi Arabia? 
Gary Edwards

Take A Break From The Snowden Drama For A Reminder Of What He's Revealed So Far - Forbes - 0 views

  • Here’s a recap of Snowden’s leaked documents published so far, in my own highly subjective order of importance.
  • The publication of Snowden’s leaks began with a top secret order from the Foreign Intelligence Surveillance Court (FISC) sent to Verizon on behalf of the NSA, demanding the cell phone records of all of Verizon Business Network Services’ American customers for the three month period ending in July. The order, obtained by the Guardian, sought only the metadata of those millions of users’ calls–who called whom when and from what locations–but specifically requested Americans’ records, disregarding foreigners despite the NSA’s legal restrictions that it may only surveil non-U.S. persons. Senators Saxby Chambliss and Diane Feinstein defended the program and said it was in fact a three-month renewal of surveillance practices that had gone for seven years.
  • A leaked executive order from President Obama shows the administration asked intelligence agencies to draw up a list of potential offensive cyberattack targets around the world. The order, which suggests targeting “systems, processes and infrastructure” states that such offensive hacking operations “can offer unique and unconventional capabilities to advance U.S. national objectives around the world with little or no warning to the adversary or target and with potential effects ranging from subtle to severely damaging.” The order followed repeated accusations by the U.S. government that China has engaged in state-sponsored hacking operations, and was timed just a day before President Obama’s summit with Chinese President Xi Jinping.
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  • Another leaked slide deck revealed a software tool called Boundless Informant, which the NSA appears to use for tracking the origin of data it collects. The leaked materials included a map produced by the program showing the frequency of data collection in countries around the world. While Iran, Pakistan and Jordan appeared to be the most surveilled countries according to the map, it also pointed to significant data collection from the United States.
  • In a congressional hearing, NSA director Keith Alexander argued that the kind of surveillance of Americans’ data revealed in that Verizon order was necessary to for archiving purposes, but was rarely accessed and only with strict oversight from Foreign Intelligence Surveillance Court judges. But another secret document published by the Guardian revealed the NSA’s own rules for when it makes broad exceptions to its foreign vs. U.S. persons distinction, accessing Americans’ data and holding onto it indefinitely. Those exceptions include anytime Americans’ data is judged to be “significant foreign intelligence” information or information about a crime that has been or is about to be committed, any data “involved in the unauthorized disclosure of national security information,” or necessary to “assess a communications security vulnerability.” Any encrypted data that the NSA wants to crack can also be held indefinitely, regardless of whether its American or foreign origin.
  • Documents leaked to the Guardian revealed a five-year-old British intelligence scheme to tap transatlantic fiberoptic cables to gather data. A program known as Tempora, created by the U.K.’s NSA equivalent Government Communications Headquarters (GCHQ) has for the last 18 months been able to store huge amounts of that raw data for up to 30 days. Much of the data is shared with the NSA, which had assigned 250 analysts to sift through it as of May of last year.
  • Another GCHQ project revealed to the Guardian through leaked documents intercepted the communications of delegates to the G20 summit of world leaders in London in 2009. The scheme included monitoring the attendees’ phone calls and emails by accessing their Blackberrys, and even setting up fake Internet cafes that used keylogging software to surveil them.
  • Snowden showed the Hong Kong newspaper the South China Morning Post documents that it said outlined extensive hacking of Chinese and Hong Kong targets by the NSA since 2009, with 61,000 targets globally and “hundreds” in China. Other SCMP stories based on Snowden’s revelations stated that the NSA had gained access to the Chinese fiberoptic network operator Pacnet as well as Chinese mobile phone carriers, and had gathered large quantities of Chinese SMS messages.
  • The Guardian’s Glenn Greenwald has said that Snowden provided him “thousands” of documents, of which “dozens” are newsworthy. And Snowden himself has said he’d like to expose his trove of leaks to the global media so that each country’s reporters can decide whether “U.S. network operations against their people should be published.” So regardless of where Snowden ends up, expect more of his revelations to follow.
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    Nice tight summary
Gary Edwards

JW: Obama Admin Knew About Benghazi Before It Happened - 0 views

  • The State Department has yet to turn over any documents from the secret email accounts of Hillary Clinton and other top State Department officials. “These documents are jaw-dropping. No wonder we had to file more FOIA lawsuits and wait over two years for them.  If the American people had known the truth – that Barack Obama, Hillary Clinton and other top administration officials knew that the Benghazi attack was an al-Qaeda terrorist attack from the get-go – and yet lied and covered this fact up – Mitt Romney might very well be president. And why would the Obama administration continue to support the Muslim Brotherhood even after it knew it was tied to the Benghazi terrorist attack and to al Qaeda? These documents also point to connection between the collapse in Libya and the ISIS war – and confirm that the U.S. knew remarkable details about the transfer of arms from Benghazi to Syrian jihadists,” stated Tom Fitton, Judicial Watch president.  “These documents show that the Benghazi cover-up has continued for years and is only unraveling through our independent lawsuits. The Benghazi scandal just got a whole lot worse for Barack Obama and Hillary Clinton.”
  • The DOD documents also contain the first official documentation that the Obama administration knew that weapons were being shipped from the Port of Benghazi to rebel troops in Syria. An October 2012 report confirms: Weapons from the former Libya military stockpiles were shipped from the port of Benghazi, Libya to the Port of Banias and the Port of Borj Islam, Syria. The weapons shipped during late-August 2012 were Sniper rifles, RPG’s, and 125 mm and 155mm howitzers missiles. During the immediate aftermath of, and following the uncertainty caused by, the downfall of the ((Qaddafi)) regime in October 2011 and up until early September of 2012, weapons from the former Libya military stockpiles located in Benghazi, Libya were shipped from the port of Benghazi, Libya to the ports of Banias and the Port of Borj Islam, Syria. The Syrian ports were chosen due to the small amount of cargo traffic transiting these two ports. The ships used to transport the weapons were medium-sized and able to hold 10 or less shipping containers of cargo. The DIA document further details: The weapons shipped from Syria during late-August 2012 were Sniper rifles, RPG’s and 125mm and 155mm howitzers missiles.  The numbers for each weapon were estimated to be: 500 Sniper rifles, 100 RPG launchers with 300 total rounds, and approximately 400 howitzers missiles [200 ea – 125mm and 200ea – 155 mm.] The heavily redacted document does not disclose who was shipping the weapons.
  • Another DIA report, written in August 2012 (the same time period the U.S. was monitoring weapons flows from Libya to Syria), said that the opposition in Syria was driven by al Qaeda and other extremist Muslim groups: “the Salafist, the Muslim Brotherhood, and AQI are the major forces driving the insurgency in Syria.” The growing sectarian direction of the war was predicted to have dire consequences for Iraq, which included the “grave danger” of the rise of ISIS: The deterioration of the situation has dire consequences on the Iraqi situation and are as follows: This creates the ideal atmosphere for AQI [al Qaeda Iraq] to return to its old pockets in Mosul and Ramadi, and will provide a renewed momentum under the presumption of unifying the jihad among Sunni Iraq and Syria, and the rest of the Sunnis in the Arab world against what it considers one enemy, the dissenters. ISI could also declare an Islamic state through its union with other terrorist organizations in Iraq and Syria, which will create grave danger in regards to unifying Iraq and the protection of its territory. Some of the “dire consequences” are blacked out but the DIA presciently warned one such consequence would be the “renewing facilitation of terrorist elements from all over the Arab world entering into Iraqi Arena.”
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  • From a separate lawsuit, the State Department produced a document created the morning after the Benghazi attack by Hillary Clinton’s offices, and the Operations Center in the Office of the Executive Secretariat that was sent widely through the agency, including to Joseph McManus (then-Hillary Clinton’s executive assistant).  At 6:00 am, a few hours after the attack, the top office of the State Department sent a “spot report” on the “Attack on U.S. Diplomatic Mission in Benghazi” that makes no mention of videos or demonstrations: Four COM personnel were killed and three were wounded in an attack by dozens of fighters on the U.S. Diplomatic Mission in Benghazi beginning approximately 1550 Eastern Time….
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    "Administration knew three months before the November 2012 presidential election of ISIS plans to establish a caliphate in Iraq  Administration knew of arms being shipped from Benghazi to Syria (Washington, DC) - Judicial Watch announced today that it obtained more than 100 pages of previously classified "Secret" documents from the Department of Defense (DOD)and the Department of State revealing that DOD almost immediately reported that the attack on the U.S. Consulate in Benghazi was committed by the al Qaeda and Muslim Brotherhood-linked "Brigades of the Captive Omar Abdul Rahman" (BCOAR), and had been planned at least 10 days in advance. Rahman is known as the Blind Sheikh, and is serving life in prison for his involvement in the 1993 World Trade Center bombing and other terrorist acts.  The new documents also provide the first official confirmation that shows the U.S. government was aware of arms shipments from Benghazi to Syria.  The documents also include an August 2012 analysis warning of the rise of ISIS and the predicted failure of the Obama policy of regime change in Syria. The documents were released in response to a court order in accordance with a May 15, 2014, Freedom of Information Act (FOIA) lawsuit filed against both the DOD and State Department seeking communications between the two agencies and congressional leaders "on matters related to the activities of any agency or department of the U.S. government at the Special Mission Compound and/or classified annex in Benghazi." Spelling and punctuation is duplicated in this release without corrections. A Defense Department document from the Defense Intelligence Agency (DIA), dated September 12, 2012, the day after the Benghazi attack, details that the attack on the compound had been carefully planned by the BOCAR terrorist group "to kill as many Americans as possible."  The document was sent to then-Secretary of State Hillary Clinton, then-Defense Secretary Leon P
Paul Merrell

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

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

Russia Sending Advanced Anti-aircraft Missiles to Syria - World - Haaretz - 0 views

  • Moscow is sending an advanced anti-aircraft missile system to Syria, two Western officials and a Russian source said, as part of what the West believes is stepped-up military support for embattled President Bashar Assad. The Western officials said the SA-22 system would be operated by Russian troops, rather than Syrians. It was on its way to Syria but had not yet arrived.  "This system is the advanced version used by Russia and it's meant to be operated by Russians in Syria," said one of the sources, a Western diplomat who is regularly briefed on U.S., Israeli and other intelligence assessments.  A U.S. official separately confirmed the information.  The Russian source, who is close to the Russian navy, said the delivery would not be the first time Moscow had sent the SA-22 system, known as Pantsir-S1 in Russian, to Syria. It had been sent in 2013, the source said. 
  • "There are plans now to send a new set," the source said, without detailing how far along the process was. However, the Western diplomat said the version of the SA-22 on its way to Syria was newer than previous missile systems deployed there. Syrian officials could not be reached for comment.  The United States has been leading a campaign of air strikes in Syrian air space for a year, joined by aircraft from European and regional allies including Britain, France, Jordan and Turkey. U.S. forces operating in the area are concerned about the potential introduction of the weapon, the diplomat said. U.S. officials say they believe Moscow has been sending troops and equipment to Syria, although they say Russia's intentions are not clear.
  • Lebanese sources have told Reuters that Russian troops have begun participating in combat operations on behalf of the Assad government. Moscow has not commented on those reports. Speaking at a news conference in Moscow, Russian Foreign Minister Sergei Lavrov said Russia was sending military equipment to Syria to help the Assad government combat Islamic State fighters, and had sent experts to help train the Syrian army to use it.  However, the dispatch of advanced anti-aircraft missiles would appear to undermine that justification, since neither Islamic State nor any other Syrian rebel group possesses any aircraft. Lavrov also said coordination was needed between Russia's military and the Pentagon to avoid "unintended incidents" around Syria. Russia was conducting pre-planned naval drills in the eastern Mediterranean, he said.
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  • This year has seen momentum shift against Assad's government in Syria's 4-year-old civil war, which has killed 250,000 people and driven around half of Syria's 23 million people from their homes. An ally of Damascus since the Cold War, Moscow maintains its only Mediterranean naval base at Tartous on the Syrian coast, and protecting it would be a strategic objective. Recent months have also seen talk of a new role for outside forces in Syria, with NATO-member Turkey proposing the creation of a "safe zone" free from both Islamic State and government forces near its Syrian border. Even if Russians operated the missiles and kept them out of the hands of the Syrian army, the arrival of such an advanced anti-aircraft system could also unsettle Israel, which in the past has bombed sophisticated arms it suspected were being handed to Assad's Lebanese guerrilla allies, Hezbollah. 
  • "In the Middle East you never know what will happen. If the Russians end up handing it (SA-22) over to the Syrian military I don't think the Israelis would intervene but they would go bananas if they see it heading towards Hezbollah in Lebanon," the diplomatic source said. An Israeli military spokesman declined to comment on the missile system. A senior Israeli defense official briefing reporters on Thursday said Israel was in contact with Moscow and would continue its policy of stopping advanced weapons reaching Hezbollah. "We have open relations with the Russians who have come to save Assad in the civil war. Along with this, we will not allow our sovereignty to be compromised or the transfer of advanced or chemical weapons (to Hezbollah). We are following the developments and keeping open channels with Moscow." 
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    There is debate over the truthfulness of reports that Russia is stepping up its military defense of the Assad government. If this report is true, the only conceivable targets for the missiles are aircraft of the U.S. coalition and their role is likely to be protection of Russia's naval base and deterrence from those aircraft flying air support for anti-assad government forces. 
Paul Merrell

The Vineyard of the Saker: The most pathetic case of backpedaling I have seen in my life - 0 views

  • Check out this story by AP and compare the lame, pathetic and self-evident nonsense of these so-called "intelligence officials" offer with the hard fact based presentation of the Russian Air Force Chief of Staff. Here is the full article with my comments in blue. WASHINGTON (AP) — Senior U.S. intelligence officials said Tuesday that Russia was responsible for "creating the conditions" that led to the shooting down of Malaysia Airlines Flight 17, but they offered no evidence of direct Russian government involvement. The intelligence officials were cautious in their assessment, noting that while the Russians have been arming separatists in eastern Ukraine, the U.S. had no direct evidence that the missile used to shoot down the passenger jet came from Russia. The officials briefed reporters Tuesday under ground rules that their names not be used in discussing intelligence related to last week's air disaster, which killed 298 people. The plane was likely shot down by an SA-11 surface-to-air missile fired by Russian-backed separatists in eastern Ukraine, the intelligence officials said, citing intercepts, satellite photos and social media postings by separatists, some of which have been authenticated by U.S. experts. But the officials said they did not know who fired the missile or whether any Russian operatives were present at the missile launch. They were not certain that the missile crew was trained in Russia, although they described a stepped-up campaign in recent weeks by Russia to arm and train the rebels, which they say has continued even after the downing of the commercial jetliner.
  • In terms of who fired the missile, "we don't know a name, we don't know a rank and we're not even 100 percent sure of a nationality," one official said, adding at another point, "There is not going to be a Perry Mason moment here." White House deputy national security adviser Ben Rhodes said the U.S. was still working to determine whether the missile launch had a "direct link" to Russia, including whether there were Russians on the ground during the attack and the degree to which Russians may have trained the separatists to launch such a strike. "We do think President Putin and the Russian government bears responsibility for the support they provided to these separatists, the arms they provided to these separatists, the training they provided as well and the general unstable environment in eastern Ukraine," Rhodes said in an interview with CNN. He added that heavy weaponry continues to flow into Ukraine from Russia following the downing of the plane. The intelligence officials said the most likely explanation for the downing was that the rebels made a mistake. Separatists previously had shot down 12 Ukrainian military airplanes, the officials said.
  • The officials made clear they were relying in part on social media postings and videos made public in recent days by the Ukrainian government, even though they have not been able to authenticate all of it. For example, they cited a video of a missile launcher said to have been crossing the Russian border after the launch, appearing to be missing a missile. But later, under questioning, the officials acknowledged they had not yet verified that the video was exactly what it purported to be. Despite the fuzziness of some details, however, the intelligence officials said the case that the separatists were responsible for shooting down the plane was solid. Other scenarios — such as that the Ukrainian military shot down the plane — are implausible, they said. No Ukrainian surface-to-air missile system was in range. (That is a lie as proven by the Russian satellite imagery and signal intercepts which prove that they Ukies had plenty of batteries freshly brought right next to the combat zone even though the Novorissians had just one Su-25 close air support aircraft in their entire inventory) From satellites, sensors and other intelligence gathering, officials said, they know where the missile originated — in separatist-held territory — and what its flight path was. But if they possess satellite or other imagery of the missile being fired, they did not release it Tuesday. A graphic they made public depicts their estimation of the missile's flight path with a green line. The jet's flight path was available from air traffic control data.
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  • In the weeks before the plane was shot down, Russia had stepped up its arming and training of the separatists after the Ukrainian government won a string of battlefield victories. The working theory is that the SA-11 missile came from Russia, although the U.S. doesn't have proof of that, the officials said. U.S. Ambassador to the U.N. Samantha Power said last week that "because of the technical complexity of the SA-11, it is unlikely that the separatists could effectively operate the system without assistance from knowledgeable personnel. Thus, we cannot rule out technical assistance from Russian personnel in operating the systems," she said. Asked about evidence, one of the senior U.S. intelligence officials said it was conceivable that Russian paramilitary troops are operating in eastern Ukraine, but that there was no direct link from them to the missile launch. Asked why civilian airline companies were not warned about a possible threat, the officials said they did not know the rebels possessed SA-11 missiles until after the Malaysian airliner was shot down. (WHAT?  Even I new this, just by reading the reports about the seized Buks, reports which even included photos.  They are really insulting our collective intelligence again!) 
  • ave you counted the "caveat words"?  I counted fifteen (depending on what you want to include).  Notice that they consider the Ukie missile as "implausible" but that they never explain why this would be implausible.  And they admit relying in part on social media and Ukie government info?  How absolutely utterly pathetic.  I mean - I feel sorry for them.  For any self-respecting intelligence official to admit such things is to commit a seppuku of your professional pride.  It's admitting that you are an amateur and a drooling moron.  And here is the deal - I very much doubt that these men are amateurs or morons.  So, yet again, they were back-stabbed by imbecile politicians like Obama and Power who just are not used to consulting with their own specialist before flapping their lips and nevermind if they make an entire intelligence community look like cretins.
  • I can barely imaging how much the US intelligence community must *hate* this administration.  Can you imagine what it must be to be a highly experienced US State Department or DIA career officer and listen to how the Russians constantly berate the US government for being "un-professional" and "amateurish" only to then hear that kind of absolute utter nonsense spoken in your name. Look, in this game I am 100% on Russia's side, but part of me, on a (ex-) professional level if you want,  feels the pain that I am sure many career intelligence officers feel today in the USA and they have my sincere sympathy.  I met enough of them to know that they are not the idiots that this Administration makes them out to be. But of course the big news here is this: the US fairy tale about Putin the terrorist is falling down in flames.  Yet again the Neocons by their sheer arrogance, hubris and boundless stupidity manged to lie their way into a corner from which there is no exit.  Not that the US had much street-cred anyway, not after Colin Powell's dishwasher powder in a vial at the UNSC.  But, of course, there is bad, very bad, even worse and outright terrible.  But now the US has reached the "terminal" stage. The AngloZionists sure had this one coming.
Paul Merrell

Israel Hayom | British special forces land in Iraq to fight ISIS - 0 views

  • Troops from the Royal British Army's elite SAS unit and Special Reconnaissance Regiment have landed in Iraq and are pursuing Islamic State fighters, particularly the U.K. citizen known as "Jihadi John" who beheaded the American journalist James Foley on camera last week. The Sunday Mail reported that the British commandos were employing advanced technologies to find the killer. "It is possible to identify British jihadis on the battlefield by intercepting their radio messages. When they're captured by the Iraqis or Kurds we'll take a close interest in their questioning," an SAS member told the weekly paper. It already appears that the U.S. and U.K. are close to identifying the British-accented terrorist who killed Foley. "We're not in a position to say exactly who this is, but I think we are close," British Ambassador to the U.S. Sir Peter Westmacott told NBC's "Meet the Press."
Paul Merrell

The Mystery of a Ukrainian Army 'Defector' | Consortiumnews - 0 views

  • Exclusive: U.S. intelligence officials suggest that the person who fired the missile that downed Malaysia Airlines Flight 17 may have been “a defector” from the Ukrainian army, an apparent attempt to explain why some CIA analysts thought satellite images revealed men in Ukrainian army uniforms manning the missile battery, writes Robert Parry. By Robert Parry As the U.S. government seeks to build its case blaming eastern Ukrainian rebels and Russia for the shoot-down of Malaysia Airlines Flight 17, the evidence seems to be getting twisted to fit the preordained conclusion, including a curious explanation for why the troops suspected of firing the fateful missile may have been wearing Ukrainian army uniforms. On Tuesday, mainstream journalists, including for the Los Angeles Times and the Washington Post, were given a briefing about the U.S. intelligence information that supposedly points the finger of blame at the rebels and Russia. While much of this circumstantial case was derived from postings on “social media,” the briefings also addressed the key issue of who fired the Buk anti-aircraft missile that is believed to have downed the airliner killing all 298 people onboard.
  • After last Thursday’s shoot-down, I was told that U.S. intelligence analysts were examining satellite imagery that showed the crew manning the suspected missile battery wearing what looked like Ukrainian army uniforms, but my source said the analysts were still struggling with whether that essentially destroyed the U.S. government’s case blaming the rebels. The Los Angeles Times article on Tuesday’s briefing seemed to address the same information this way: “U.S. intelligence agencies have so far been unable to determine the nationalities or identities of the crew that launched the missile. U.S. officials said it was possible the SA-11 [anti-aircraft missile] was launched by a defector from the Ukrainian military who was trained to use similar missile systems.” That statement about a possible “defector” might explain why some analysts thought they saw soldiers in Ukrainian army uniforms tending to the missile battery in eastern Ukraine. But there is another obvious explanation that the U.S. intelligence community seems unwilling to accept: that the missile may have been launched by someone working for the Ukrainian military.
  • In other words, we may be seeing another case of the U.S. government “fixing the intelligence” around a desired policy outcome, as occurred in the run-up to war with Iraq. The Los Angeles Times also reported: “U.S. officials have not released evidence proving that Russia’s military played a direct role in the downing of the jet or in training separatists to use the SA-11 missile system. But they said Tuesday that the Russian military has been training Ukrainian separatists to operate antiaircraft batteries at a base in southwestern Russia.” Though that last charge also has lacked verifiable proof – and could refer to training on less powerful anti-aircraft weapons like so-called Manpads – the key question is whether the Russian government trained the rebels in handling a sophisticated anti-aircraft system, like the SA-11, and then was reckless enough to supply one or more of those missile batteries to the rebels — knowing that these rockets could reach above 30,000 feet where passenger airlines travel. The Russian government has denied doing anything that dangerous, if not crazy, and the eastern Ukrainian rebels also deny ever possessing such a missile battery. But the question that needs answering is: Are the Russians and the rebels lying?
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  • That requires a serious and impartial investigation, but what the Obama administration and most of the mainstream U.S. news media have delivered so far is another example of “information warfare,” assembling a case to make an adversary look bad regardless of the actual evidence — and then marginalizing any dissents to the desired conclusion. That was exactly the “group think” that led the United States into the disastrous invasion of Iraq – and it appears that few if any lesson were learned.
  • [For more on this topic of prejudging who’s to blame for the Malaysia Airlines tragedy, see Consortiumnews.com’s “Kerry’s Latest Reckless Rush to Judgment.”]
  •  
    The Obama Administration's answer to the question of who shot down MH17 seems to be more and more questionable. 
Paul Merrell

Ron Paul on Obama's Syria WMD Claim - 0 views

  • "People say, we have to do it because this is what Israel wants." - "The Neocons are winning this battle here at home and they're controlling our foreign policy"
  • "People say, we have to do it because this is what Israel wants." - "The Neocons are winning this battle here at home and they're controlling our foreign policy"
Gary Edwards

Clinton Body Count - 0 views

  •  
    The infamous list of Clinton associates mysteriously found dead.  The dead bodies associated with the Clintons is well worth reviewing on this the eve of congressional testimony from the many Benghazi Whistleblowers.   Just speculation, but i'm in the camp of those who believe that the Benghazi Massacre was an arranged kidnapping gone bad.  The idea was to kidnap Libyan Ambassador Christopher Stevens, and trade him for the blind Sheikh, Oamr Abdel-Rahman - the man behind the 1993 World Trade Center bombing.   Ever since the Muslim Brotherhood took over Egypt, and did so with the assistance of Obama, President Morsi has been lobbying Obama to release and return the blind Sheikh.  In fact, Morsi's first statement as President of Egypt was to promise the Muslim Brotherhood that he would secure the release of the blind Sheikh.  For sure not something Obama could do without some sort of compelling pretext.  Hence the kidnapping plot. Hard to figure out what went wrong with the grand plan. There was never an embassy or consulate in Benghazi. The facilities in Benghazi served as a logistics center for arms and weapons transfers from Libya ultimately destined for the anti-Assad - Muslim Brotherhood terrorists in Syria. It was used by the "State Department's CIA," which is quite different than the actual CIA, to collect and store all the weapons Obama had supplied the Libyan rebels with in their efforts to overthrow Ghadaffi.  And then there's the 20,000 (400 tons worth) heat seeking surface-to-air (SA-7's) missles that Ghaddafi had amassed. Just prior to his kidnapping, Ambassador Stevens was meeting with the Turkish Consul General Ali Sait Akin to arrange another shipment of the captured arms.   The al-Qaeda linked Lybian Islamiuc Fighting Group, headed by Abdelhakim Belhadj, also coveted those weapons.  But this group was supposedly disbanded when Ghadaffi was killed!    It was Belhadj's guys that killed Ambassador Stevens, even though Belhadj him
Paul Merrell

UN Investigating Suspicious Death Of Former UN Head, Allegedly Killed By CIA - 0 views

  • If you asked a typical American about conspiracy theories, he or she probably wouldn’t have any trouble rattling off an extensive list of theories ranging from the Kennedy assassination to 9/11. But if there’s one potential conspiracy that most Americans are totally unaware of, it’s the supposed CIA plot to kill UN Secretary General Dag Hammarskjöld. Dag had been the Secretary General for eight years, but died in an accidental plane crash in 1961, while en route to a cease-fire negotiation in the British protectorate of Northern Rhodesia. But, over the years, there have been multiple claims that the plane was shot down, and that he was actually killed in an assassination plot that involved some combination of the CIA, a Belgian Mining Company, a South African paramilitary unit, and British intelligence. Why? Because he was pushing for Congo’s independence, which would have hurt the interests of any of those forces. Adding fuel to the theories, was a copy of a secret government document that surfaced in South Africa 18 years ago, which suggested that the CIA, MI5, and the South African government were in on Dag’s death. They presented statements from CIA director Allen Dulles, saying that “Dag is becoming troublesome … and should be removed.” Unfortunately the original documents couldn’t be found, so there was no way to verify the copies.
  • But last year the South African government claimed to have found the original document, which has led the UN to reopen their investigation into Hammarskjöld’s death. The CIA has, of course, has dismissed these claims as “absurd and without foundation.”
Paul Merrell

M of A - Syria: Jabhat al-Nusra, Not The FSA, Fighting With ISIS - 0 views

  • The infighting between several foreign sponsored jihadist insurgency groups in northern and eastern Syria is sold by some as a fight of the "moderate" Free Syrian Army against the al-Qaeda affiliate ISIS. But this does not seem to be the reality. While there is some showing of the FSA flag over conquered ISIS territory this is likely just a fake to hide the real group behind the fighting, the al-Qaeda affiliate Jabhad al Nusra and a new, probably fictitious, Army of the Mujahideen. A similar fake was reported from southern Syria where Jabhat al-Nusra successes get sold to "western" supporters as sole FSA operations: “The FSA and Al Nusra join together for operations but they have an agreement to let the FSA lead for public reasons, because they don’t want to frighten Jordan or the West,” said an activist who works with opposition groups in Deraa. “Operations that were really carried out by Al Nusra are publicly presented by the FSA as their own,” he said.
  • A leading FSA commander involved in operations in Deraa said Al Nusra had strengthened FSA units and played a decisive role in key rebel victories in the south. “The face of Al Nusra cannot be to the front. It must be behind the FSA, for the sake of Jordan and the international community,” he said. Whether this infighting between the two al-Qaeda affiliates Jabhat al-Nusra and ISIS is about, money or other issues, is not yet clear. ISIS seems not be putting up a real fight but is mostly just retreating when challenged. Something is fishy in this. Whatever it may be it is for now good news for the Syrian government. It may even open a chance to kick those fake "revolutionaries" out of Aleppo.
Gary Edwards

Gold Price "Manipulated For A Decade", Repeatedly Slammed Lower, Bloomberg Reports | Ze... - 0 views

  •  
    "While the FT promptly retracted an article on precisely the topic of gold manipulation from earlier this week (recorded for posterity here), Bloomberg appears to not have had the same "editorial" concerns and pressures, and today released an article once again slamming the final conspiracy theory that while every other asset class is manipulated, gold is in a pristine class of its own, untouched by close-banging, price fixing traders or central bankers, and reports that "the London gold fix, the benchmark used by miners, jewelers and central banks to value the metal, may have been manipulated for a decade by the banks setting it, researchers say." Of course, over the past 5 years we have reported time and again how official gold manipulation started in earnest some time in the 1960s (who can forget the "reshuffle club") but we will start with a decade. Here is what BBG finds: Unusual trading patterns around 3 p.m. in London, when the so-called afternoon fix is set on a private conference call between five of the biggest gold dealers, are a sign of collusive behavior and should be investigated, New York University's Stern School of Business Professor Rosa Abrantes-Metz and Albert Metz, a managing director at Moody's Investors Service, wrote in a draft research paper.   "The structure of the benchmark is certainly conducive to collusion and manipulation, and the empirical data are consistent with price artificiality," they say in the report, which hasn't yet been submitted for publication. "It is likely that co-operation between participants may be occurring."   The paper is the first to raise the possibility that the five banks overseeing the century-old rate -- Barclays Plc, Deutsche Bank AG, Bank of Nova Scotia, HSBC Holdings Plc and Societe Generale SA -- may have been actively working together to manipulate the benchmark. It also adds to pressure on the firms to overhaul the way the rate is calculated. Authorities around the world, already inv
Paul Merrell

Islamic Jihadis Take Over Second-Biggest City In Iraq ... But Al Qaeda Wasn't Even IN I... - 0 views

  • Here are the number of terror attacks in Iraq between 1979 and 2011 courtesy of the National Consortium for the Study of Terrorism and Responses to Terrorism Global Terrorism Database (part of a joint government-university program on terrorism, is hosted at the University of Maryland):
  • Al Qaeda wasn’t even in Iraq until the U.S. invaded that country. And U.S. policy in Libya is partly responsible for sending an influx of Al Qaeda terrorists – and heavy weapons – into Iraq. And now things are getting a whole lot worse … You may not have heard, but Al Qaeda allies took over the Iraqi city of Fallujah 6 months ago. And today, Al Qaeda-linked extremists in Iraq captured Iraq’s second-biggest city, the major oil center of Mosul.
  • To make matters worse, the army fled, so the militants seized huge caches of U.S. supplied weapons, including humvees:
Paul Merrell

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

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

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

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

Web's Reach Binds N.S.A. and Silicon Valley Leaders - NYTimes.com - 0 views

  • When Max Kelly, the chief security officer for Facebook, left the social media company in 2010, he did not go to Google, Twitter or a similar Silicon Valley concern. Instead the man who was responsible for protecting the personal information of Facebook’s more than one billion users from outside attacks went to work for another giant institution that manages and analyzes large pools of data: the National Security Agency. Mr. Kelly’s move to the spy agency, which has not previously been reported, underscores the increasingly deep connections between Silicon Valley and the agency and the degree to which they are now in the same business. Both hunt for ways to collect, analyze and exploit large pools of data about millions of Americans. The only difference is that the N.S.A. does it for intelligence, and Silicon Valley does it to make money.
  • Yet technology experts and former intelligence officials say the convergence between Silicon Valley and the N.S.A. and the rise of data mining — both as an industry and as a crucial intelligence tool — have created a more complex reality. Silicon Valley has what the spy agency wants: vast amounts of private data and the most sophisticated software available to analyze it. The agency in turn is one of Silicon Valley’s largest customers for what is known as data analytics, one of the valley’s fastest-growing markets. To get their hands on the latest software technology to manipulate and take advantage of large volumes of data, United States intelligence agencies invest in Silicon Valley start-ups, award classified contracts and recruit technology experts like Mr. Kelly. “We are all in these Big Data business models,” said Ray Wang, a technology analyst and chief executive of Constellation Research, based in San Francisco. “There are a lot of connections now because the data scientists and the folks who are building these systems have a lot of common interests.” Although Silicon Valley has sold equipment to the N.S.A. and other intelligence agencies for a generation, the interests of the two began to converge in new ways in the last few years as advances in computer storage technology drastically reduced the costs of storing enormous amounts of data — at the same time that the value of the data for use in consumer marketing began to rise. “These worlds overlap,” said Philipp S. Krüger, chief executive of Explorist, an Internet start-up in New York. The sums the N.S.A. spends in Silicon Valley are classified, as is the agency’s total budget, which independent analysts say is $8 billion to $10 billion a year.
  • Despite the companies’ assertions that they cooperate with the agency only when legally compelled, current and former industry officials say the companies sometimes secretly put together teams of in-house experts to find ways to cooperate more completely with the N.S.A. and to make their customers’ information more accessible to the agency. The companies do so, the officials say, because they want to control the process themselves. They are also under subtle but powerful pressure from the N.S.A. to make access easier.
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  • Skype, the Internet-based calling service, began its own secret program, Project Chess, to explore the legal and technical issues in making Skype calls readily available to intelligence agencies and law enforcement officials, according to people briefed on the program who asked not to be named to avoid trouble with the intelligence agencies. Project Chess, which has never been previously disclosed, was small, limited to fewer than a dozen people inside Skype, and was developed as the company had sometimes contentious talks with the government over legal issues, said one of the people briefed on the project. The project began about five years ago, before most of the company was sold by its parent, eBay, to outside investors in 2009. Microsoft acquired Skype in an $8.5 billion deal that was completed in October 2011. A Skype executive denied last year in a blog post that recent changes in the way Skype operated were made at the behest of Microsoft to make snooping easier for law enforcement. It appears, however, that Skype figured out how to cooperate with the intelligence community before Microsoft took over the company, according to documents leaked by Edward J. Snowden, a former contractor for the N.S.A. One of the documents about the Prism program made public by Mr. Snowden says Skype joined Prism on Feb. 6, 2011. Microsoft executives are no longer willing to affirm statements, made by Skype several years ago, that Skype calls could not be wiretapped. Frank X. Shaw, a Microsoft spokesman, declined to comment.
Paul Merrell

What Is Skunk Spray Israel Uses on Palestinians? | Al Jazeera America - 0 views

  • Skunk — a foul-smelling liquid first sprayed on Palestinian protesters as a form of crowd control in 2008 — has become one of the characteristic scents of the Israeli occupation. Created by the Israeli research and development firm Odortec, Skunk has the “viscosity of water” and “can be sprayed over a large area using a standard water cannon,” Odortec says on its website.  After Skunk makes contact with a person or object, the putrid stench can last for days and can cause nausea and vomiting. The smell is overpowering, similar to a skunk’s spray but worse, smelling as if it has been mixed with raw sewage, sulfur and rotting animal corpses.
  • Promoted as a nonlethal tool for crowd control, Skunk has been used by Israeli forces at Palestinian demonstrations for the past seven years. Videos show the liquid being used during protests, on private Palestinian homes and even at a funeral procession in the West Bank. An Israel Defense Forces representative told Al Jazeera that Skunk minimizes “the necessity for the use of live ammunition” and “is a well-known and accepted measure that is in line with international standards and used by many countries throughout the world.” But some activists and organizations, including the Association for Civil Rights in Israel, have criticized the Israeli military for allegedly using Skunk against individuals and structures unassociated with protests, making neighborhoods stink for days. Israeli human rights group B’Tselem said Israeli forces regularly hose down Palestinian homes with Skunk, raising suspicions that the practice is used as a punitive measure — especially against residents in villages that routinely hold protests against Israel’s occupation of Palestinian territories.
  • Because of its putrid smell and the confidentiality surrounding its composition — the BBC revealed yeast and baking powder are among the ingredients — rumors abound among Palestinians as to what is in Skunk.
Paul Merrell

FBI Agents: Comey 'Stood In The Way' Of Clinton Investigation | The Daily Caller - 0 views

  • FBI agents say the bureau is alarmed over Director James Comey deciding not to suggest that the Justice Department prosecute Hillary Clinton over her mishandling of classified information. According to an interview transcript given to The Daily Caller, provided by an intermediary who spoke to two federal agents with the bureau last Friday, agents are frustrated by Comey’s leadership.
  • “This is a textbook case where a grand jury should have convened but was not. That is appalling,” an FBI special agent who has worked public corruption and criminal cases said of the decision. “We talk about it in the office and don’t know how Comey can keep going.” The agent was also surprised that the bureau did not bother to search Clinton’s house during the investigation. “We didn’t search their house. We always search the house. The search should not just have been for private electronics, which contained classified material, but even for printouts of such material,” he said. “There should have been a complete search of their residence,” the agent pointed out. “That the FBI did not seize devices is unbelievable. The FBI even seizes devices that have been set on fire.” Another special agent for the bureau that worked counter-terrorism and criminal cases said he is offended by Comey’s saying: “we” and “I’ve been an investigator.”
  • After graduating from law school, Comey became a law clerk to a U.S. District Judge in Manhattan and later became an associate in a law firm in the city. After becoming a U.S. Attorney in the Southern District of New York, Comey’s career moved through the U.S. Attorney’s Office until he became Deputy Attorney General during the George W. Bush administration. After Bush left office, Comey entered the private sector and became general counsel and Senior Vice President for Lockheed Martin, among other private sector posts. President Barack Obama appointed him to FBI director in 2013 replacing out going-director Robert Mueller. “Comey was never an investigator or special agent. The special agents are trained investigators and they are insulted that Comey included them in ‘collective we’ statements in his testimony to imply that the SAs agreed that there was nothing there to prosecute,” the second agent said. “All the trained investigators agree that there is a lot to prosecuted but he stood in the way.” He added, “The idea that [the Clinton/e-mail case] didn’t go to a grand jury is ridiculous.” According to Washington D.C. attorney Joe DiGenova, more FBI agents will be talking about the problems at bureau and specifically the handling of the Clinton case by Comey when Congress comes back into session and decides to force them to testify by subpoena.
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  • DiGenova told WMAL radio’s Drive at Five last week, “People are starting to talk. They’re calling their former friends outside the bureau asking for help. We were asked to day to provide legal representation to people inside the bureau and agreed to do so and to former agents who want to come forward and talk. Comey thought this was going to go away.” He explained, “It’s not. People inside the bureau are furious. They are embarrassed. They feel like they are being led by a hack but more than that that they think he’s a crook. They think he’s fundamentally dishonest. They have no confidence in him. The bureau inside right now is a mess.” He added, “The most important thing of all is that the agents have decided that they are going to talk.”
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    Looks very much as if the Clintons' problems with the FBI are not over, notwithstanding their election defeat. This is a must-read.
Paul Merrell

Trump, Kissinger and Ma playing on a crowded chessboard | Asia Times - 0 views

  • And that brings us once again to Henry Kissinger, the putative dalang — puppet master — of Trump’s foreign policy. As leaked late last year in Germany’s Bild Zeitung newspaper, Kissinger has drafted a plan to officially recognize Crimea as part of Russia and lift the Obama administration’s economic sanctions.
  • The plan fits into Kissinger’s overall strategy — call it a traditional British Balance of Power, or Divide and Rule, approach — of breaking up the Eurasian front (Russia-China-Iran) that constitutes the real “threat” to what Mattis defines as the “established world order.” The strategy consists in seducing the alleged weaker top “threat” (Russia) away from the stronger (China), while keeping on antagonizing/harassing the third and weakest pole, Iran. Kissinger is certainly more sophisticated than predictable US Think Tankland in his attempt to dismember the Shanghai Cooperation Organization, one of key nodes of the Russia-China strategic partnership. The SCO has been on the go for a decade and a half now. Iran, an observer, will soon become a full member, as will India and Pakistan; and Turkey — after the failed coup against Erdogan — is being courted by Moscow. German analyst Peter Spengler adds a juicy teaser — if Kissinger’s “Metternichian approach would include some degree of ‘harmonization’ with Russia, how will a Trump presidency then manage to contain the re-engineered ally Germany?” After all, a key priority for sanctions-averse German industrialists is to vastly expand business with Russia.
  • Kissinger’s strategy essentially tweaks the early 1970s Trilateral Commission, largely advanced by his rival dalang Dr Zbigniew “Grand Chessboard” Brzezinski, according to which geopolitics is to be managed by North America, Western Europe and Japan.
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  • The US deep state plutocracy never sleeps. Admitting both Russia and China, linked by a strategic partnership, as equal stakeholders in the “established world order” is anathema; that would imply the end of US hegemony. And that’s where the top Western would-be dalangs diverge, as they look for the most efficient Divide and Rule opening. Kissinger privileges Russia; Dr Zbig privileges China, painting it as a threat to Russia. Meanwhile, Russian Eurasianists — in frontal opposition to the Atlanticists — visualize the US, China and Russia on an equal geopolitical footing. It will be fascinating to watch how the New Great Game develops in the Central Asian “stans”. That’s a privileged theater in which to see the Russia-China strategic partnership, or division of labor, in action: China goes no holds barred on investment — via One Belt, One Road, aka the New Silk Roads — while Russia remains paramount in politics and security.
  • The bottom line: Moscow feels no existential “threat” from Beijing because for China, Central Asia and the Russian Far East register essentially as economic/investment opportunities along the New Silk Roads.
  • Once again, Kissinger’s strategy will run into a solidified Russia-China strategic partnership — already manifested in Pipelineistan (multibillion-dollar oil and gas projects); security deals; the SCO; cooperation inside BRICS; exchange of cutting-edge military technology; and the progressive interlocking of the New Silk Roads and the Eurasian Economic Union. When the New Silk Roads hit the next level, by the start of the next decade, the Eurasian heartland, as well as the rimland, will be deeply immersed in a connectivity frenzy. Welcome to Mackinder and Spykman revisited — and there’s no “offer” Washington can come up with to make it go away.
  • Into this crucial juncture steps Jack Ma. The Trump-Ma meeting at Trump Tower was niskala disguised as sekala. The House That Ma Built — Alibaba — is no less than the New Great Wall, resisting the assault of behemoth Amazon.com in the ultimate commercial arena of the 21st century: e-commerce. Ma also happens to be very close to Chinese President Xi Jinping. Like an upgraded we-mean-business Deng Xiaoping, Ma proposed, on the record, the creation of 1 million US jobs. That’s an offer Trump cannot possibly refuse. And this after shadow US Secretary of State Jared Kushner had a Chateau Lafite Rothschild-inundated lunch with another Chinese tycoon, Anbang Insurance Group’s Wu Xiahoui, who married Deng’s niece and whose company owns the Waldorf Astoria hotel in Manhattan.
  • Ma’s business firepower should not be underestimated. Alibaba is involved in a massive project to modernize even rural China. He’s the face of Chinese business not only internally but globally. Xi Jinping knows this all too well — who better than Ma as China’s top business ambassador? This is not, as Japanese interests spin it, about the “death” of Made in China; it is about globalized China exporting business and jobs to the West. All of the above points to a very crowded chessboard. Trump will do business and clinch deals with China, while his deep state-tinged cabinet barks the usually explosive national security rhetoric, dalang Kissinger plots a Russia-China split, and Moscow-Beijing secretly concoct concerted moves. Place your bets on who will be the major partner in the Trump, Kissinger and Ma law firm.
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