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Paul Merrell

Bail-In and the Financial Stability Board: The Global Bankers' Coup | nsnbc international - 0 views

  • Ellen H. Brown (WoD) : On December 11, 2014, the US House passed a bill repealing the Dodd-Frank requirement that risky derivatives be pushed into big-bank subsidiaries, leaving our deposits and pensions exposed to massive derivatives losses. The bill was vigorously challenged by Senator Elizabeth Warren; but the tide turned when Jamie Dimon, CEO of JPMorganChase, stepped into the ring. Perhaps what prompted his intervention was the unanticipated $40 drop in the price of oil. As financial blogger Michael Snyder points out, that drop could trigger a derivatives payout that could bankrupt the biggest banks. And if the G20’s new “bail-in” rules are formalized, depositors and pensioners could be on the hook. The new bail-in rules were discussed in my last last article entitled “New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND Pensioners.” They are edicts of the Financial Stability Board (FSB), an unelected body of central bankers and finance ministers headquartered in the Bank for International Settlements in Basel, Switzerland. Where did the FSB get these sweeping powers, and is its mandate legally enforceable?
  • Those questions were addressed in an article I wrote in June 2009, two months after the FSB was formed, titled “Big Brother in Basel: BIS Financial Stability Board Undermines National Sovereignty.” It linked the strange boot shape of the BIS to a line from Orwell’s 1984: “a boot stamping on a human face—forever.” The concerns raised there seem to be materializing, so I’m republishing the bulk of that article here. We need to be paying attention, lest the bail-in juggernaut steamroll over us unchallenged. The Shadowy Financial Stability Board Alarm bells went off in April 2009, when the Bank for International Settlements (BIS) was linked to the new Financial Stability Board (FSB) signed onto by the G20 leaders in London. The FSB was an expansion of the older Financial Stability Forum (FSF) set up in 1999 to serve in a merely advisory capacity by the G7 (a group of finance ministers formed from the seven major industrialized nations). The chair of the FSF was the General Manager of the BIS. The new FSB was expanded to include all G20 members (19 nations plus the EU).
  • Formally called the “Group of Twenty Finance Ministers and Central Bank Governors,” the G20 was, like the G7, originally set up as a forum merely for cooperation and consultation on matters pertaining to the international financial system. What set off alarms was that the new Financial Stability Board had real teeth, imposing “obligations” and “commitments” on its members; and this feat was pulled off without legislative formalities, skirting the usual exacting requirements for treaties. It was all done in hasty response to an “emergency.” Problem-reaction-solution was the slippery slope of coups. Buried on page 83 of an 89-page Report on Financial Regulatory Reform issued by the US Obama administration was a recommendation that the FSB strengthen and institutionalize its mandate to promote global financial stability. It sounded like a worthy goal, but there was a disturbing lack of detail. What was the FSB’s mandate, what were its expanded powers, and who was in charge? An article in The London Guardian addressed those issues in question and answer format:
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  • For three centuries, private international banking interests have brought governments in line by blocking them from issuing their own currencies and requiring them to borrow banker-issued “banknotes” instead. Political colonialism is now a thing of the past, but under the new FSB guidelines, nations could still be held in feudalistic subservience to foreign masters. Consider this scenario: the new FSB rules precipitate a massive global depression due to contraction of the money supply. XYZ country wakes up to the fact that all of this is unnecessary – that it could be creating its own money, freeing itself from the debt trap, rather than borrowing from bankers who create money on computer screens and charge interest for the privilege of borrowing it. But this realization comes too late: the boot descends and XYZ is crushed into line. National sovereignty has been abdicated to a private committee, with no say by the voters. Marilyn Barnewall, dubbed by Forbes Magazine the “dean of American private banking,” wrote in an April 2009 article titled “What Happened to American Sovereignty at G-20?”: It seems the world’s bankers have executed a bloodless coup and now represent all of the people in the world. . . . President Obama agreed at the G20 meeting in London to create an international board with authority to intervene in U.S. corporations by dictating executive compensation and approving or disapproving business management decisions.  Under the new Financial Stability Board, the United States has only one vote. In other words, the group will be largely controlled by European central bankers. My guess is, they will represent themselves, not you and not me and certainly not America.
  • Are these commitments legally binding? Adoption of the FSB was never voted on by the public, either individually or through their legislators. The G20 Summit has been called “a New Bretton Woods,” referring to agreements entered into in 1944 establishing new rules for international trade. But Bretton Woods was put in place by Congressional Executive Agreement, requiring a majority vote of the legislature; and it more properly should have been done by treaty, requiring a two-thirds vote of the Senate, since it was an international agreement binding on the nation. “Bail-in” is not the law yet, but the G20 governments will be called upon to adopt the FSB’s resolution measures when the proposal is finalized after taking comments in 2015. The authority of the G20 has been challenged, but mainly over whether important countries were left out of the mix. The omitted countries may prove to be the lucky ones, having avoided the FSB’s net.
Paul Merrell

Recognizing Palestine, BDS and the survival of Israel | The Electronic Intifada - 0 views

  • What is happening in European parliaments? In the last month and a half, the UK House of Commons, the Spanish, French, Portuguese and Irish parliaments have all recognized Israel’s eternal “right” to be a racist state via a much-touted recognition of an alleged Palestinian state within the West Bank and Gaza Strip, the areas of Palestine Israel occupied in 1967. These moves followed the lead of Sweden’s new center-left government which decided shortly after taking office to “recognize the State of Palestine” as part of the “two-state solution.” As there is no Palestinian state to recognize within the 1967, or any other, borders, these political moves are engineered to undo the death of the two-state solution, the illusion of which had guaranteed Israel’s survival as a Jewish racist state for decades. These parliamentary resolutions in fact aim to impose a de facto arrangement that prevents Israel’s collapse and replacement with a state that grants equal rights to all its citizens and is not based on colonial and racial privileges.
  • Unlike Israeli Prime Minister Benjamin Netanyahu, who believes he can force the world to recognize a greater racist Israel that annexes the territories Israel occupied in 1967 de jure, the European parliaments are insisting that they will only guarantee Israel’s survival as a racist state within Israel’s 1948 borders and on whatever extra lands within the 1967 territories the Palestinian Authority (PA) — collaborating with Israel — agrees to concede in the form of “land swaps.” Denmark’s parliament and the European Parliament itself are the latest bodies set to consider votes guaranteeing Israel’s survival in its present form within the 1948 boundaries only. Even neutral Switzerland agreed, upon a request from the PA, to host a meeting of signatories of the Fourth Geneva Convention to discuss the 1967 Israeli occupation only. Expectedly, in addition to the Jewish settler-colony, the world’s major settler colonies — the United States, Canada, and Australia — are opposed to the meeting and will not attend.
  • The context of these steps has to do with the recent conduct of the Netanyahu government whose impatience is exposing Israel’s liberal racist politicians — those who prefer a more patient approach to achieving the very same racist political goals — to embarrassment. The situation has become so untenable that ardent American liberal Zionists led by none other than Michael Walzer, emeritus professor at the Institute for Advanced Study in Princeton, have felt compelled to act. Walzer, notorious for justifying all of Israel’s conquests as “just wars,” and a group of like-minded figures calling themselves “Scholars for Israel and Palestine,” recently called on the US government to impose a travel ban on right-wing Israeli politicians who support annexation of what remains of the West Bank. Whereas successive Israeli governments have shown an unyielding determination to strengthen Israel’s right to be a racist state over all of historic Palestine, they have done so through the ruse of the “peace process,” which they were committed to maintaining for decades to come without any resolution.
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  • This strategy has worked very well for the last two decades with hardly a peep from the Palestinian Authority, which owes its very existence to this unending “process.” More recently, Hamas’ political leadership, especially the branch in Qatar, where the group’s leader Khaled Meshal is based, has also been looking for the best way to join this project. But as the ongoing Netanyahu policies of visiting horrors on the Palestinian people across all of the territories Israel controls — policies that have exposed the “peace process” for the sham it always was as well as Israel’s claim to being “democratic” as a most fraudulent one — the international consensus that Israeli liberals have built over the decades to shield Israel’s ugly reality from the world has been weakened, if not threatened with collapse altogether. Israeli liberals realize that what Netanyahu is doing is threatening their entire project and the very survival of Israel as a racist Jewish state. It is in this context that European parliaments are rushing to rescue Israel’s liberals by guaranteeing for them Israel’s survival in its racist form through recognizing a nonexistent Palestinian state “within the 1967 borders.” It is also in this context that European governments in the last year or so have begun to speak of BDS as a possible weapon they could use to threaten the Netanyahu government if it continues in its refusal to “negotiate” with the Palestinians (the Europeans use of the threat of BDS is limited to a threat of boycotting only the products of Israeli colonial settlements in the occupied territories), that is, to maintain the illusion of an ongoing “peace process.” Herein lies the dilemma for those who support BDS.
Paul Merrell

LEAKED: Secret Negotiations to Let Big Brother Go Global | Wolf Street - 0 views

  • Much has been written, at least in the alternative media, about the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), two multilateral trade treaties being negotiated between the representatives of dozens of national governments and armies of corporate lawyers and lobbyists (on which you can read more here, here and here). However, much less is known about the decidedly more secretive Trade in Services Act (TiSA), which involves more countries than either of the other two. At least until now, that is. Thanks to a leaked document jointly published by the Associated Whistleblowing Press and Filtrala, the potential ramifications of the treaty being hashed out behind hermetically sealed doors in Geneva are finally seeping out into the public arena.
  • If signed, the treaty would affect all services ranging from electronic transactions and data flow, to veterinary and architecture services. It would almost certainly open the floodgates to the final wave of privatization of public services, including the provision of healthcare, education and water. Meanwhile, already privatized companies would be prevented from a re-transfer to the public sector by a so-called barring “ratchet clause” – even if the privatization failed. More worrisome still, the proposal stipulates that no participating state can stop the use, storage and exchange of personal data relating to their territorial base. Here’s more from Rosa Pavanelli, general secretary of Public Services International (PSI):
  • The leaked documents confirm our worst fears that TiSA is being used to further the interests of some of the largest corporations on earth (…) Negotiation of unrestricted data movement, internet neutrality and how electronic signatures can be used strike at the heart of individuals’ rights. Governments must come clean about what they are negotiating in these secret trade deals. Fat chance of that, especially in light of the fact that the text is designed to be almost impossible to repeal, and is to be “considered confidential” for five years after being signed. What that effectively means is that the U.S. approach to data protection (read: virtually non-existent) could very soon become the norm across 50 countries spanning the breadth and depth of the industrial world.
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  • The main players in the top-secret negotiations are the United States and all 28 members of the European Union. However, the broad scope of the treaty also includes Australia, Canada, Chile, Colombia, Costa Rica, Hong Kong, Iceland, Israel, Japan, Liechtenstein, Mexico, New Zealand, Norway, Pakistan, Panama, Paraguay, Peru, South Korea, Switzerland, Taiwan and Turkey. Combined they represent almost 70 percent of all trade in services worldwide. An explicit goal of the TiSA negotiations is to overcome the exceptions in GATS that protect certain non-tariff trade barriers, such as data protection. For example, the draft Financial Services Annex of TiSA, published by Wikileaks in June 2014, would allow financial institutions, such as banks, the free transfer of data, including personal data, from one country to another. As Ralf Bendrath, a senior policy advisor to the MEP Jan Philipp Albrecht, writes in State Watch, this would constitute a radical carve-out from current European data protection rules:
Paul Merrell

For sale: Systems that can secretly track where cellphone users go around the globe - T... - 0 views

  • Makers of surveillance systems are offering governments across the world the ability to track the movements of almost anybody who carries a cellphone, whether they are blocks away or on another continent. The technology works by exploiting an essential fact of all cellular networks: They must keep detailed, up-to-the-minute records on the locations of their customers to deliver calls and other services to them. Surveillance systems are secretly collecting these records to map people’s travels over days, weeks or longer, according to company marketing documents and experts in surveillance technology.
  • The world’s most powerful intelligence services, such as the National Security Agency and Britain’s GCHQ, long have used cellphone data to track targets around the globe. But experts say these new systems allow less technically advanced governments to track people in any nation — including the United States — with relative ease and precision.
  • It is unclear which governments have acquired these tracking systems, but one industry official, speaking on the condition of anonymity to share sensitive trade information, said that dozens of countries have bought or leased such technology in recent years. This rapid spread underscores how the burgeoning, multibillion-dollar surveillance industry makes advanced spying technology available worldwide. “Any tin-pot dictator with enough money to buy the system could spy on people anywhere in the world,” said Eric King, deputy director of Privacy International, a London-based activist group that warns about the abuse of surveillance technology. “This is a huge problem.”
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  • Yet marketing documents obtained by The Washington Post show that companies are offering powerful systems that are designed to evade detection while plotting movements of surveillance targets on computerized maps. The documents claim system success rates of more than 70 percent. A 24-page marketing brochure for SkyLock, a cellular tracking system sold by Verint, a maker of analytics systems based in Melville, N.Y., carries the subtitle “Locate. Track. Manipulate.” The document, dated January 2013 and labeled “Commercially Confidential,” says the system offers government agencies “a cost-effective, new approach to obtaining global location information concerning known targets.”
  • tracking systems that access carrier location databases are unusual in their ability to allow virtually any government to track people across borders, with any type of cellular phone, across a wide range of carriers — without the carriers even knowing. These systems also can be used in tandem with other technologies that, when the general location of a person is already known, can intercept calls and Internet traffic, activate microphones, and access contact lists, photos and other documents. Companies that make and sell surveillance technology seek to limit public information about their systems’ capabilities and client lists, typically marketing their technology directly to law enforcement and intelligence services through international conferences that are closed to journalists and other members of the public.
  • Security experts say hackers, sophisticated criminal gangs and nations under sanctions also could use this tracking technology, which operates in a legal gray area. It is illegal in many countries to track people without their consent or a court order, but there is no clear international legal standard for secretly tracking people in other countries, nor is there a global entity with the authority to police potential abuses.
  • (Privacy International has collected several marketing brochures on cellular surveillance systems, including one that refers briefly to SkyLock, and posted them on its Web site. The 24-page SkyLock brochure and other material was independently provided to The Post by people concerned that such systems are being abused.)
  • Verint, which also has substantial operations in Israel, declined to comment for this story. It says in the marketing brochure that it does not use SkyLock against U.S. or Israeli phones, which could violate national laws. But several similar systems, marketed in recent years by companies based in Switzerland, Ukraine and elsewhere, likely are free of such limitations.
  • The tracking technology takes advantage of the lax security of SS7, a global network that cellular carriers use to communicate with one another when directing calls, texts and Internet data. The system was built decades ago, when only a few large carriers controlled the bulk of global phone traffic. Now thousands of companies use SS7 to provide services to billions of phones and other mobile devices, security experts say. All of these companies have access to the network and can send queries to other companies on the SS7 system, making the entire network more vulnerable to exploitation. Any one of these companies could share its access with others, including makers of surveillance systems.
  • Companies that market SS7 tracking systems recommend using them in tandem with “IMSI catchers,” increasingly common surveillance devices that use cellular signals collected directly from the air to intercept calls and Internet traffic, send fake texts, install spyware on a phone, and determine precise locations. IMSI catchers — also known by one popular trade name, StingRay — can home in on somebody a mile or two away but are useless if a target’s general location is not known. SS7 tracking systems solve that problem by locating the general area of a target so that IMSI catchers can be deployed effectively. (The term “IMSI” refers to a unique identifying code on a cellular phone.)
  • Verint can install SkyLock on the networks of cellular carriers if they are cooperative — something that telecommunications experts say is common in countries where carriers have close relationships with their national governments. Verint also has its own “worldwide SS7 hubs” that “are spread in various locations around the world,” says the brochure. It does not list prices for the services, though it says that Verint charges more for the ability to track targets in many far-flung countries, as opposed to only a few nearby ones. Among the most appealing features of the system, the brochure says, is its ability to sidestep the cellular operators that sometimes protect their users’ personal information by refusing government requests or insisting on formal court orders before releasing information.
  • Another company, Defentek, markets a similar system called Infiltrator Global Real-Time Tracking System on its Web site, claiming to “locate and track any phone number in the world.” The site adds: “It is a strategic solution that infiltrates and is undetected and unknown by the network, carrier, or the target.”
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    The Verint company has very close ties to the Iraeli government. Its former parent company Comverse, was heavily subsidized by Israel and the bulk of its manufacturing and code development was done in Israel. See https://en.wikipedia.org/wiki/Comverse_Technology "In December 2001, a Fox News report raised the concern that wiretapping equipment provided by Comverse Infosys to the U.S. government for electronic eavesdropping may have been vulnerable, as these systems allegedly had a back door through which the wiretaps could be intercepted by unauthorized parties.[55] Fox News reporter Carl Cameron said there was no reason to believe the Israeli government was implicated, but that "a classified top-secret investigation is underway".[55] A March 2002 story by Le Monde recapped the Fox report and concluded: "Comverse is suspected of having introduced into its systems of the 'catch gates' in order to 'intercept, record and store' these wire-taps. This hardware would render the 'listener' himself 'listened to'."[56] Fox News did not pursue the allegations, and in the years since, there have been no legal or commercial actions of any type taken against Comverse by the FBI or any other branch of the US Government related to data access and security issues. While no real evidence has been presented against Comverse or Verint, the allegations have become a favorite topic of conspiracy theorists.[57] By 2005, the company had $959 million in sales and employed over 5,000 people, of whom about half were located in Israel.[16]" Verint is also the company that got the Dept. of Homeland Security contract to provide and install an electronic and video surveillance system across the entire U.S. border with Mexico.  One need not be much of a conspiracy theorist to have concerns about Verint's likely interactions and data sharing with the NSA and its Israeli equivalent, Unit 8200. 
Paul Merrell

Nuclear deal 'at hand,' says EU foreign policy chief | The Times of Israel - 0 views

  • The European Union’s foreign policy chief on Tuesday said an Iran nuclear deal was “at hand” and urged different sides to show political will ahead of a new round of talks scheduled in Geneva next week
  • “We cannot miss this opportunity,” Federica Mogherini, whose predecessor Catherine Ashton chairs the talks in Switzerland, said at Chatham House, a think tank in London.
  • “A good deal is at hand if the parties will keep cooperating as they did so far and if we have enough political will from all sides to agree on a good deal and sell it domestically,” Mogherini said. “We have a series of internal domestic political dynamics we have to handle with care,” she said, listing “tensions” in the US Congress, Israel’s elections and Sunni-Shiite rivalry in the Gulf region. “A comprehensive agreement would be mutually beneficial for all sides,” she said. US Secretary of State John Kerry earlier on Tuesday said world powers “had made inroads” since reaching an interim deal with Iran in November 2013 on reining in its suspect nuclear program. “We expect to know soon whether or not Iran is willing to put together an acceptable, verifiable plan,” Kerry said after returning from talks in Geneva with his Iranian counterpart Mohammad Javad Zarif.
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  • Prime Minister Benjamin Netanyahu vowed earlier in the day to do all he could to thwart a bad deal from going through, saying the agreement being formulated would allow Iran to produce nuclear weapons. The so-called P5+1 group of Britain, China, France, Russia, the United States and Germany are trying to strike an accord that would prevent Tehran from developing a nuclear bomb. In return, the West would ease punishing sanctions imposed on Tehran over its nuclear program, which Iran insists is purely civilian in nature.
Paul Merrell

Exclusive: Major nations hold talks on ending U.N. sanctions on Iran - officials | Reuters - 0 views

  • (Reuters) - Major world powers have begun talks about a United Nations Security Council resolution to lift U.N. sanctions on Iran if a nuclear agreement is struck with Tehran, a step that could make it harder for the U.S. Congress to undo a deal, Western officials said. The talks between Britain, China, France, Russia and the United States — the five permanent members of the Security Council — plus Germany and Iran, are taking place ahead of difficult negotiations that resume next week over constricting Iran's nuclear ability.Some eight U.N. resolutions - four of them imposing sanctions - ban Iran from uranium enrichment and other sensitive atomic work and bar it from buying and selling atomic technology and anything linked to ballistic missiles. There is also a U.N. arms embargo.Iran sees their removal as crucial as U.N. measures are a legal basis for more stringent U.S. and European Union measures to be enforced. The U.S. and EU often cite violations of the U.N. ban on enrichment and other sensitive nuclear work as justification for imposing additional penalties on Iran.
  • U.S. Secretary of State John Kerry told Congress on Wednesday that an Iran nuclear deal would not be legally binding, meaning future U.S. presidents could decide not to implement it. That point was emphasized in an open letter by 47 Republican senators sent on Monday to Iran's leaders asserting any deal could be discarded once President Barack Obama leaves office in January 2017.But a Security Council resolution on a nuclear deal with Iran could be legally binding, say Western diplomatic officials. That could complicate and possibly undercut future attempts by Republicans in Washington to unravel an agreement.Iran and the six powers are aiming to complete the framework of a nuclear deal by the end of March, and achieve a full agreement by June 30, to curb Iran's most sensitive nuclear activities for at least 10 years in exchange for a gradual end to all sanctions on the Islamic Republic.So far, those talks have focused on separate U.S. and European Union sanctions on Iran's energy and financial sectors, which Tehran desperately wants removed. The sanctions question is a sticking point in the talks that resume next week in Lausanne, Switzerland, between Iran and the six powers.
  • But Western officials involved in the negotiations said they are also discussing elements to include in a draft resolution for the 15-nation Security Council to begin easing U.N. nuclear-related sanctions that have been in place since December 2006."If there's a nuclear deal, and that's still a big 'if', we'll want to move quickly on the U.N. sanctions issue," an official said, requesting anonymity.The negotiations are taking place at senior foreign ministry level at the six powers and Iran, and not at the United Nations in New York.
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  • A senior U.S. administration official confirmed that the discussions were underway.The official said that the Security Council had mandated the negotiations over the U.N. sanctions and therefore has to be involved. The core role in negotiations with Iran that was being played by the five permanent members meant that any understanding over U.N. sanctions would likely get endorsed by the full council, the official added.Iran rejects Western allegations it is seeking a nuclear weapons capability.Officials said a U.N. resolution could help protect any nuclear deal against attempts by Republicans in U.S. Congress to sabotage it. Since violation of U.N. demands that Iran halt enrichment provide a legal basis for sanctioning Tehran, a new resolution could make new sanction moves difficult."There is an interesting question about whether, if the Security Council endorses the deal, that stops Congress undermining the deal," a Western diplomat said.
  • Other Western officials said Republicans might be deterred from undermining any deal if the Security Council unanimously endorses it and demonstrates that the world is united in favor of a diplomatic solution to the 12-year nuclear standoff.Concerns that Republican-controlled Congress might try to derail a nuclear agreement have been fueled by the letter to Iran's leaders and a Republican invitation to Israeli Prime Minister Benjamin Netanyahu to address Congress in a March 3 speech that railed against a nuclear deal with Iran.The officials emphasized that ending all sanctions would be contingent on compliance with the terms of any deal. They added that the International Atomic Energy Agency, the Vienna-based nuclear watchdog, will play a key role in verifying Iran's compliance with any agreement.
  • Among questions facing negotiators as they seek to prepare a resolution for the Security Council is the timing and speed of lifting U.N. nuclear sanctions, including whether to present it in March if a political framework agreement is signed next week or to delay until a final deal is reached by the end-June target.
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    Soundslike it's official. U.N. Security Council Resolution is the chosen route past the Israel Firsters in Congress. But notice that Reuters is saying that "Republicans" in Congress are the barrier. Is that a sign that Repubswill be painted as the bad guys here? As in Israel's wants are now a partisan issue? It's factually incorrect. Plenty of Democrats also bow toward AIPAC headquarters  five times a day while praying for Zionist campaign contributions. 
Paul Merrell

The Orwellian Re-Branding of "Mass Surveillance" as Merely "Bulk Collection" - The Inte... - 0 views

  • Just as the Bush administration and the U.S. media re-labelled “torture” with the Orwellian euphemism “enhanced interrogation techniques” to make it more palatable, the governments and media of the Five Eyes surveillance alliance are now attempting to re-brand “mass surveillance” as “bulk collection” in order to make it less menacing (and less illegal). In the past several weeks, this is the clearly coordinated theme that has arisen in the U.S., UK, Canada, Australia and New Zealand as the last defense against the Snowden revelations, as those governments seek to further enhance their surveillance and detention powers under the guise of terrorism.
  • This manipulative language distortion can be seen perfectly in yesterday’s white-washing report of GCHQ mass surveillance from the servile rubber-stamp calling itself “The Intelligence and Security Committee of the UK Parliament (ISC)”(see this great Guardian Editorial this morning on what a “slumbering” joke that “oversight” body is). As Committee Member MP Hazel Blears explained yesterday (photo above), the Parliamentary Committee officially invoked this euphemism to justify the collection of billions of electronic communications events every day. The Committee actually acknowledged for the first time (which Snowden documents long ago proved) that GCHQ maintains what it calls “Bulk Personal Datasets” that contain “millions of records,” and even said about pro-privacy witnesses who testified before it: “we recognise their concerns as to the intrusive nature of bulk collection.” That is the very definition of “mass surveillance,” yet the Committee simply re-labelled it “bulk collection,” purported to distinguish it from “mass surveillance,” and thus insist that it was all perfectly legal.
  • This re-definition game goes as follows: yes, we vacuum up and store literally as much of the internet as we possibly can. Then we analyze all the data about what you’re doing, with whom you’re speaking, and who your network of associates is. Based on that analysis of all of you and your activities, we then read the communications that we want (with virtually no checks and concealing from you what percentage of it we’re reading), and store as much of the rest of it as technology permits for future trolling. But don’t worry: we’re only reading the Bad People’s emails. So run along then: no mass surveillance here. Just bulk collection! It’s not mass surveillance, but “enhanced collection techniques.”  One of the many facts that made the re-defining of “torture” so corrupt and indisputably invalid was that there was long-standing law making clear that exactly these interrogation techniques used by the U.S. government were torture and thus illegal. The same is true of this obscene attempt to re-define “mass surveillance” as nothing more than mere innocent “bulk collection.”
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  • As Caspar Bowden points out, EU law is crystal clear that exactly what these agencies are doing constitutes illegal mass surveillance. From the 2000 decision of the European Court of Human Rights in Amann v. Switzerland, which found a violation of the right to privacy guaranteed by Article 8 of the European Convention on Human Rights and rejected the defense from the government that no privacy violation occurs if the data is not reviewed or exploited: The Court reiterates that the storing of data relating to the “private life” of an individual falls within the application of Article 8 § 1  . . . . The Court reiterates that the storing by a public authority of information relating to an individual’s private life amounts to an interference within the meaning of Article 8. The subsequent use of the stored information has no bearing on that finding (emphasis added). A separate 2000 ruling found a violation of privacy rights even when the government is merely storing records regarding one’s activities undertaken in public (such as attending demonstrations), because “public information can fall within the scope of private life where it is systematically collected and stored in files held by the authorities.” That’s why an EU Parliamentary Inquiry into the Snowden revelations condemned NSA and GCHQ spying in the “strongest possible terms,” pointing out that it was classic “mass surveillance” and thus illegal. That’s the same rationale that led a U.S. federal court to conclude that mass metatdata collection was very likely an unconstitutional violation of the privacy rights in the Fourth Amendment.
  • By itself, common sense should prevent any of these governments from claiming that sweeping up, storing, and analyzing much of the internet – literally examining billions of communications activities every week of entire populations – is something other than “mass surveillance.” Yet this has now become the coordinated defense from the governments in the U.S., the UK, Canada, New Zealand and Australia. It’s nothing short of astonishing to watch them try to get away with this kind of propagnadistic sophistry. (In the wake of our reports with journalist Nicky Hager on GCSB, watch the leader of New Zealand’s Green Party interrogate the country’s flailing Prime Minister this week in Parliament about this completely artificial distinction). But – just as it was stunning to watch media outlets refuse to use the term “torture” because the U.S. Government demanded that it be called something else – this Orwellian switch in surveillance language is now predictably (and mindlessly) being adopted by those nations’ most state-loyal media outlets.
Paul Merrell

Obama May Find It Impossible to Mend Frayed Ties to Netanyahu - NYTimes.com - 0 views

  • But now that Mr. Netanyahu has won after aggressively campaigning against a Palestinian state and Mr. Obama’s potential nuclear deal with Iran, the question is whether the president and prime minister can ever repair their relationship — and whether Mr. Obama will even try.On Wednesday, part of the answer seemed to be that the president would not make the effort. Continue reading the main story Related Coverage Win in Israel Sets Netanyahu on Path to Rebuild and Redefine GovernmentMARCH 18, 2015 Palestinian Leaders See Validation of Their Statehood EffortMARCH 18, 2015 Netanyahu Soundly Defeats Chief Rival in Israeli ElectionsMARCH 17, 2015 News Analysis: Deep Wounds and Lingering Questions After Israel’s Bitter RaceMARCH 17, 2015 In strikingly strong criticism, the White House called Mr. Netanyahu’s campaign rhetoric, in which he railed against Israeli Arabs because they went out to vote, an attempt to “marginalize Arab-Israeli citizens” and inconsistent with the values that bind Israel and the United States. The White House press secretary, Josh Earnest, told reporters traveling with Mr. Obama on Air Force One on Wednesday that Mr. Netanyahu’s statement was “deeply concerning and it is divisive and I can tell you that these are views the administration intends to communicate directly to the Israelis.”
  • And with Mr. Netanyahu’s last-minute turnaround against a Palestinian state alongside Israel, several administration officials said that the Obama administration may now agree to passage of a United Nations Security Council resolution embodying principles of a two-state solution that would be based on the pre-1967 lines between Israel and the West Bank and Gaza Strip and mutually agreed swaps.Most foreign policy experts say that Israel would have to cede territory to the Palestinians in exchange for holding on to major Jewish settlement blocks in the West Bank.
  • Such a Security Council resolution would be anathema to Mr. Netanyahu. Although the principles are United States policy, until now officials would never have endorsed them in the United Nations because the action would have been seen as too antagonistic to Israel.Continue reading the main story “The premise of our position internationally has been to support direct negotiations between the Israelis and the Palestinians,” a senior White House official said. “We are now in a reality where the Israeli government no longer supports direct negotiations. Therefore we clearly have to factor that into our decisions going forward.”
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  • Administration officials said that although the relationship between Israel and the United States would remain strong, it would not be managed by Mr. Obama and Mr. Netanyahu. Instead it would be left to Secretary of State John Kerry, one of Mr. Netanyahu’s only remaining friends in the administration, and to Pentagon officials who handle the close military alliance with Israel. “The president is a pretty pragmatic person and if he felt it would be useful, he will certainly engage,” said a senior administration official, who asked not to be identified while discussing Mr. Obama’s opinions of Mr. Netanyahu. “But he’s not going to waste his time.”
  • Another source of administration anger is Ron Dermer, Israel’s ambassador to Washington and an American-born former Republican political operative. Some administration officials said that it would improve the atmosphere if Mr. Dermer stepped down — he helped orchestrate an invitation from Speaker John A. Boehner to have Mr. Netanyahu address Congress without first consulting the White House — but it would not change the underlying divisions over policy.
  • Despite the fractured relationship between Mr. Obama and Mr. Netanyahu, Israel, which has received more American aid since the end of World War II than any other country, will continue to get more than $3 billion annually in mostly military funding. In addition, the United States military will continue to work closely with the Israel Defense Forces to maintain Israel’s military edge against its regional adversaries.Foreign policy experts said that the United States would for the most part continue to side with Israel internationally, even as a growing number of European allies seek to pressure Israel to stop settlement expansion in the West Bank and to recognize Palestinian statehood.
  • But Daniel Levy, a former Israeli peace negotiator who is now the head of the Middle East and North Africa program at the European Council on Foreign Relations, warned that the administration’s patience was growing thin. “What the Obama administration is saying is that, ‘Yes, we’re still committed to you,’ ” Mr. Levy said. “But if you don’t give us something to work with, we can’t continue to carry the rest of the world for you.”Mr. Netanyahu’s objections to a nuclear deal with Iran, and his decision to firmly ally himself with Mr. Obama’s Republican opponents in expressing his ire over the Iran talks, may well have hardened the president’s decision to push for an agreement, one Obama adviser said Wednesday. At the very least, Mr. Netanyahu’s opposition has done nothing to steer Mr. Obama away from his preferred course of reining in Iran’s nuclear ambitions through an international agreement that would sharply limit Tehran’s ability to produce nuclear fuel for at least 10 years, in exchange for a gradual easing of economic sanctions. Mr. Kerry and Mohammad Javad Zarif, the Iranian foreign minister, are continuing talks in Lausanne, Switzerland, this week with the goal of reaching an agreement by the end of the month.
  • “We do think we’re going to get something,” one senior administration official said. He noted, pointedly, “We are backed by the P-5 plus 1” — using the diplomatic moniker for Britain, France, Russia, China and Germany, and the United States. Mr. Netanyahu, the official added, should “look carefully” at his own anti-deal coalition, which, besides congressional Republicans, consists mostly of the Sunni Arab states that all detest Israel but lately have come to fear a rising Iran more.
  • Although Mr. Netanyahu is certain to be a major critic of any Iran agreement and to push Republicans in Congress to oppose it, Aaron David Miller, a former State Department official who is now a vice president at the Woodrow Wilson International Center for Scholars, said that in the end the Israeli leader would not get his way. “You will have an Iran deal,” Mr. Miller said. ”The Israelis will not like it. But in the end, Israel will not be able to block it.”That is in part because the administration expects lawmakers will be reluctant to reject a deal for fear that they would be held responsible for what could happen after — either a nuclear-armed Iran or war with Iran.
  • After Iran, administration officials said the next major confrontation with Mr. Netanyahu would most likely be over continued Israeli settlement building in the West Bank. The Palestinians plan to file a case in the International Criminal Court in April contending that the settlements are a continuing war crime.Martin S. Indyk, Mr. Obama’s former special envoy on recent negotiations between the Israelis and the Palestinians and now the executive vice president of the Brookings Institution, said that although the United States would always be a strong supporter of Israel, Mr. Netanyahu was in dangerous terrain. “Israel does not need to be, and should not aspire to be, a nation that dwells alone,” Mr. Indyk said.
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    Haven't made my way back to it yet, but Obama called Netanyahu to congratulate him on reelection, but gave him some marching orders, then the White House leaked enough to make it clear that the tail is no longer wagging the dog.  Coupled with this NY Times piece yesterday, Netanyahu undoubtedly got the message. He did a 180 degree about face today.
Paul Merrell

Swiss Gold Referendum: What It Really Means -- Paul Craig Roberts - PaulCraigRoberts.org - 0 views

  • In a few days the Swiss people will go to the polls to decide whether the Swiss central bank is to be required to hold 20% of its reserves in the form of gold. Polls show that the gold requirement is favored by the less well off and opposed by wealthy Swiss invested in stocks. http://snbchf.com/gold/swiss-gold-referendum-latest-news/ These poll results provide new insight into the real reason for Quantitative Easing by the Federal Reserve and European Central Bank.
Paul Merrell

The fix is in: how banks allegedly rigged the US$5.3 trillion foreign exchange market |... - 0 views

  • Suppose you’re in the supermarket shopping for groceries. While you’re strolling the aisle with your cart, a shadowy figure looms over your shoulder and changes the prices on the items you want to buy before you get a chance to pick them up. As you reach for some vine tomatoes, you notice the price just jumped 20 cents. When you select some brie from among the cheeses, you witness the number on the sticker change right before your eyes. Ditto when you look for your favorite brand of granola.
  • This is the essence of what regulators learned might be happening in the foreign exchange market, where US$5.3 trillion of dollars, euros and yen are traded every day. In June 2013, Bloomberg reported that traders at some of the world’s biggest banks worked to manipulate key currency rates, racking up profits and costing investors – including your retirement fund – hundreds of millions of dollars globally. They are accused of placing their own transactions ahead of trades requested by clients – known as front-running – which was the reason prices kept changing as people tried to make their own trades, like in the shopping analogy above. They bought euros or dollars, driving up the rate, and then profited by selling to other investors at a higher level.
  • This week six of the currency-dealers being investigated – including JP Morgan, Citigroup and HSBC – agreed to pay a total of US$4.3 billion to regulators in the US, UK and Switzerland to resolve the allegations. The deal is likely only the first in a series of settlements and other penalties that will emerge from the ongoing investigations. The investors most concerned with the alleged manipulation are funds that invest internationally, such as hedge funds, the endowments of charitable or cultural institutions and insurance companies. But it also includes the mutual funds in which many of your 401K or IRA assets are likely invested.
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  • When institutions like these need to buy or sell assets across borders, they call a dealer at one of the big banks, which provides what is basically a wholesale version of the cambio currency kiosks you see at the airport. The dealer quotes a buying price and a selling price, and the fund chooses whether to buy or sell. In addition to trading with customers, the dealers trade among themselves, sometimes to manage their inventory and sometimes hoping to make money by taking speculative positions for a few minutes or even seconds. And that’s how we arrive at the scandal. Every day at 4pm in London, the market sets special “fixing” exchange rates that are used to value the funds’ international investments. The fixing price is set in a simple way: it’s just the average of all prices paid among dealing banks during the 30 seconds before and after the clock strikes 4. Many international fund managers prefer to trade currencies at exactly the fixing price because it’s simpler and smarter to trade at the same price used to value your portfolio. To make these transactions happen, international funds often place large orders with dealers at major banks before the fix.
  • Suppose, for example, a pension fund with major investments in Europe knows it will receive a lot of new IRA money on November 30, when many US employees get paid. And suppose the fund plans to invest €100 million of that in European stocks. At 3:30pm that day the fund might instruct its bank to purchase €100 million at the fixing price. With this kind of advance order, the bank could book its own trades before the fund does, buying the euros it will later sell to the investor.
  • The banks – or more accurately, specific dealers at specific banks – are accused of manipulating the fixing prices based on their knowledge of advance customer orders. In a nutshell, the accusation is that dealers from different banks got together before the fix and compared notes in chat rooms. Most currency trading is handled by 10 or so mega banks, so if just a few of them compared notes, they would have a good sense of whether the exchange rate would rise or fall during the fixing interval that day. The shadowy figure looking over your shoulder at the supermarket to see what you’re going to buy next is like the banks comparing their customer orders before the fix. To finish the supermarket analogy, we need to know how and why the dealing banks could raise the fixing rate to the disadvantage of international pension and mutual funds. Suppose once again that many customers have placed big orders to buy euros at the fix, and the banks figure the euro-dollar exchange rate will rise during the window. This would give them an incentive to buy a lot of euros before it’s set (remember the golden rule of trading: buy low, sell high).
Paul Merrell

Common currency: a forex scandal that epitomises the blindness in the banking crisis | ... - 0 views

  • The biggest open secret in the financial world has been confirmed. Regulators in the UK, the US and Switzerland have announced massive fines for some of the world’s largest banks for a manipulation of global currency markets that in its callous ubiquity says so much about the banking behaviours that sparked the global financial crisis. Fines levied by the UK regulator add up to £1.1 billion. The US regulator announced fines of $1.4 billion. Banks hit by these fines include UBS, Citi, JP Morgan, HSBC and RBS. Barclays is yet to come to a settlement on the back of the investigations.
  • The probe uncovered individuals traders within large banks who were working together in trading clubs which had names you would expect from the “ruthless narcissists” on BBC TV show, The Apprentice. These included “the players”, “the 3 musketeers” and “1 team, 1 dream”. These clubs worked together to influence the WM Reuters 4pm fix – essentially the official number used to fix currency rates. It shapes everything from how much we pay for currency when we go overseas to how much our pension fund pays when it wants to buy into an offshore investment. This is one of the core numbers in global finance.
  • So, it sounds important, but why should we actually care? Well global currency markets are worth over £5 trillion a day. They are the world’s biggest financial market. More than 40% of the trade takes place in London, and more than half of this trade is dominated by just four players: Citi, Deutsche Bank, UBS and Barclays. A small percentage of the trade relates to buying actual things (such as a shipment of coffee or oil). Most of it is either purely speculative or part of the process buying other speculative financial instruments. According to one piece in the Financial Times, there are really only a hundred or so people who really matter in this market. About 30 of them have been either placed on gardening leave or have been fired from their position in the last year.
Paul Merrell

Luxembourg: a tax haven by any other name? | nsnbc international - 0 views

  • The revelations that global and multinational businesses have been brokering “secret” tax deals with Luxembourg to avoid paying taxes in their home countries, may be the first time an entire country has been implicated in tax avoidance collusion. A cache of leaked agreements uncovered by the International Consortium of Investigative Journalism (ICIJ) appears to show that major companies have used the tiny EU state to dramatically cut their tax liabilities.
  • The ICIJ’s six-month investigation claims to have found household companies such as Aviva, HSBC, E-on, Tyco, Pepsi, IKEA and Deutsche Bank were among those which had taken advantage of legal tax avoidance schemes in Luxembourg. Luxembourg is routinely named as a tax haven on many of the world’s authoritative lists of tax havens, including the one compiled by me and my two co-authors, Richard Murphy and Christian Chavagneux. But Luxembourg has managed to remain “under the radar” not least because its politicians and bankers have been denying for years that it is, or ever was, a tax haven. The revelations suggest Luxembourg has been playing a double game. Luxembourg has been quick to comply with new regulations proposed by the Organisation for Economic Co-operation and Development (OECD) and the EU. In 2011, the OECD global forum on transparency and exchange of information commended Luxembourg for introducing new rules governing banking information or information protected by secrecy rules.
  • But at the same time, the revelations show that 340 well-known foreign companies have entered into secret agreements with the Luxembourg authorities, brokered by the accounting firm PricewaterhouseCoopers. To take a random example that applies for many of these companies, the ICIJ have a letter to the Luxembourg tax administration written on a PwC letterhead, where FedEx lays down its plan to set up a limited liability company as a tax resident in Luxembourg – so subject in principle to Luxembourg’s corporate income tax. The letter then provides details of a proposed shareholding arrangement that will ensure, I quote, that “neither that Fedex SCS nor its shareholders will be subject to corporate income tax, Municipal Business Tax and Net Wealth tax in Luxembourg”. The letter implies that Luxembourg will serve in effect as a tax haven for Fedex.
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  • There have been a number of other highly publicised tax evasion and avoidance cases recently. For instance, many cases in the US involved branches or even key individuals working in branches of well-known Swiss and Israeli banks in the US, including UBS, Credit Swiss or Bank Leumi, or alternatively branches of American banks in Switzerland. But these tended to involve private firms. The Swiss government professed to have had no knowledge of such activities. Indeed, Swiss law prohibited Swiss banks, whether domestic or international, from providing any information on their clients to the Swiss state. This is a scandal with a difference. The leaked PricewaterhouseCoopers books imply there has been systemic collusion between companies from all over the world and the Luxembourg authorities in flagrant contravention of EU rules. The documents suggest that preferential tax treatments were guaranteed to these companies prior to their incorporation in Luxembourg.
  • This is the first case of suspected collusion between a government and a foreign firm in tax avoidance matters that I am aware of. In that sense, the current scandal places Luxembourg on par with Greece whose officials allegedly provided misleading data on Greek national debt to the Commission. More embarrassingly, all this took place during the time when the current president of the European Commission, Jean-Claude Juncker, served as the prime minister of Luxembourg from 1995-2013. It is difficult to imagine that the prime minister of such a small state was unaware such deals were taking place. There is a difference between the court of law and the court of public opinion. But we know from recent cases that the EU Commission has tended to follow the court of public opinion with criminal investigations of its own, as was the case of Amazon. It is likely that the Commission will now investigate these leaks and may impose fines on Luxembourg. I doubt Juncker can ride this one out.
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    Woo-hoo! The IRS and Congress will be interested in this one too.  Now if someone would kindly send the docs to Wikileaks, the nations of the world can prosecute companies for tax evasion. But this time, would you all, pretty please, prosecute some human beings too and no settlements without at least a couple of years behind bars?
Paul Merrell

http://www.ronpaulinstitute.org/archives/peace-and-prosperity/2015/january/23/foreign-t... - 0 views

  • US-backed president of Ukraine, Petro Poroshenko, was among the elites gathering in Davos, Switzerland this week to attend the 2015 World Economic Forum. During his speech he made the remarkable claim that 9,000 Russian troops were currently fighting in Ukraine on behalf of the independence-seeking areas of the country. These 9,000 troops have brought with them tanks, heavy artillery, and armored vehicles, he claimed. "Is this not aggression?" he asked the gathered elites.The US was quick to amplify Poroshenko's claims
  • NATO agreed with the US government assessment, adding that the movement of heavy equipment from Russia into Ukraine had increased in pace recently.There appears to be a problem, however. The 9,000 troops and heavy weapons and equipment that purportedly accompanies them have been seen by no one. There are no satellite photos of what would certainly be a plainly visible incursion. We know from incredibly detailed satellite photos of Boko Haram's recent massacre in Nigeria that producing evidence of such large scale movement is entirely within the realm of US and NATO technological capabilities. Still there remains a lack of evidence. Moreover, the Organization for Security and Cooperation in Europe, which is on the ground monitoring the border crossings between Ukraine and Russia, reported just this week that, "At the two BCPs (border crossing points) the OM (observer mission) did not observe military movement, apart from vehicles of the Russian Federation border guard service." If there has been an increase of Russian heavy weapons into Ukraine, why are the satellites in the skies and the eyes on the ground blind to them?
  • US military on the ground in Ukraine is a significant escalation, far beyond the previous deployment of additional US and NATO troops in neighboring Poland and the Baltics.Additionally, the US announced it was transferring heavy military equipment to the Ukrainian armed forces, including the Kozak mine-resistant personnel carrier and some 35 other armored trucks.The US government has reportedly set aside several million dollars to help train the Ukrainian national guard. Considering the fact that the national guard was only re-formed after last year's US-backed coup and is made up in large part of neo-Nazis from the extremist Right Sector, one would hope some of the money is spent dissuading members from such an odious ideology.So there may well be Russian troops and equipment on the ground in Ukraine -- though so far no proof exists and the Russians deny it. But we know very well that there are US troops and heavy military equipment on the ground in Ukraine because the US openly admits it! So Russia has no business claiming interest in unrest on its doorstep, but the US has every right to become militarily involved in a conflict which has nothing to do with us nearly 5,000 miles away? Interventionist illogic.
Paul Merrell

Why Public Banks Outperform Private Banks: Unfair Competition or a Better Mousetrap? | ... - 0 views

  • Public banks in North Dakota, Germany and Switzerland have been shown to outperform their private counterparts. Under the TPP and TTIP, however, publicly-owned banks on both sides of the oceans might wind up getting sued for unfair competition because they have advantages not available to private banks.
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    Ellen Brown opposes fast-tracking the TPP and TTIP in part because they would allow private banksters to sue publically-owned banks for unfair competition. I have no sympathy for the private banksters. None. 
Paul Merrell

Czech President: US Ambassador unwelcome at Presidential Residence | nsnbc international - 0 views

  • The President of the Czech Republic, Milos Zeman, responded to U.S. Ambassador Andre Shapiro’s comments on President Zeman’s visit to Moscow on V-Day by saying that Shapiro is not welcome at the Czech Presidential residence and that the Czech Republic has its own foreign policy. Czech President Zeman responded to the U.S. ambassador’s negative remarks in the official parliamentary online site, saying that the doors of the Prague Castle, the Czech Republic’s Presidential Residence are closed for Ambassador Shapiro.
  • Zeman stressed that he won’t have any ambassador to meddle in Czech sovereign affairs and the program of his visit to Moscow. During a previous TV appearance the Czech President stressed that his visit to Moscow, contrary to some claims would not undermine “the Wests position on Ukraine”. Zeman stressed the necessity to maintain and develop relations with Moscow, and not only relations based on trade, but also relations with regards to a strategic partnership. The Czech President’s response falls in line with a continuously growing continental European consensus that opposes the predominantly US/UK driven policy of tensions towards Russia. This growing consensus includes, among others, the Czech Republic, Slovakia, France, Germany, Austria, Switzerland and others.
  • In June 2014 both the Czech Republic and Slovakia opposed “suggestions” by U.S. President Obama to station NATO troops in the two countries. The U.S. initiative was attempted as the US stationed additional troops in Poland and the Baltic countries. It is also noteworthy that a 2014 poll revealed about half of the German population opposes NATO’s eastwards expansion that occurred after the German reunification and in violation of oral agreements. About half of the German population would prefer to see Germany as bridge with an equal distance to both the East and the West while about half of the German population does not perceive Germany as solidly anchored within NATO.
Paul Merrell

Israel Spied on Iran Nuclear Talks With U.S. - WSJ - 0 views

  • Soon after the U.S. and other major powers entered negotiations last year to curtail Iran’s nuclear program, senior White House officials learned Israel was spying on the closed-door talks. The spying operation was part of a broader campaign by Israeli Prime Minister Benjamin Netanyahu’s government to penetrate the negotiations and then help build a case against the emerging terms of the deal, current and former U.S. officials said. In addition to eavesdropping, Israel acquired information from confidential U.S. briefings, informants and diplomatic contacts in Europe, the officials said.
  • The espionage didn’t upset the White House as much as Israel’s sharing of inside information with U.S. lawmakers and others to drain support from a high-stakes deal intended to limit Iran’s nuclear program, current and former officials said. “It is one thing for the U.S. and Israel to spy on each other. It is another thing for Israel to steal U.S. secrets and play them back to U.S. legislators to undermine U.S. diplomacy,” said a senior U.S. official briefed on the matter.
  • The U.S. and Israel, longtime allies who routinely swap information on security threats, sometimes operate behind the scenes like spy-versus-spy rivals. The White House has largely tolerated Israeli snooping on U.S. policy makers—a posture Israel takes when the tables are turned. The White House discovered the operation, in fact, when U.S. intelligence agencies spying on Israel intercepted communications among Israeli officials that carried details the U.S. believed could have come only from access to the confidential talks, officials briefed on the matter said. Israeli officials denied spying directly on U.S. negotiators and said they received their information through other means, including close surveillance of Iranian leaders receiving the latest U.S. and European offers. European officials, particularly the French, also have been more transparent with Israel about the closed-door discussions than the Americans, Israeli and U.S. officials said.
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  • Mr. Netanyahu and Israeli Ambassador Ron Dermer early this year saw a rapidly closing window to increase pressure on Mr. Obama before a key deadline at the end of March, Israeli officials said. Using levers of political influence unique to Israel, Messrs. Netanyahu and Dermer calculated that a lobbying campaign in Congress before an announcement was made would improve the chances of killing or reshaping any deal. They knew the intervention would damage relations with the White House, Israeli officials said, but decided that was an acceptable cost. The campaign may not have worked as well as hoped, Israeli officials now say, because it ended up alienating many congressional Democrats whose support Israel was counting on to block a deal. Obama administration officials, departing from their usual description of the unbreakable bond between the U.S. and Israel, have voiced sharp criticism of Messrs. Netanyahu and Dermer to describe how the relationship has changed.
  • “People feel personally sold out,” a senior administration official said. “That’s where the Israelis really better be careful because a lot of these people will not only be around for this administration but possibly the next one as well.” This account of the Israeli campaign is based on interviews with more than a dozen current and former U.S. and Israeli diplomats, intelligence officials, policy makers and lawmakers. Weakened ties Distrust between Mr. Netanyahu and Mr. Obama had been growing for years but worsened when Mr. Obama launched secret talks with Iran in 2012. The president didn’t tell Mr. Netanyahu because of concerns about leaks, helping set the stage for the current standoff, according to current and former U.S. and Israeli officials. U.S. officials said Israel has long topped the list of countries that aggressively spy on the U.S., along with China, Russia and France. The U.S. expends more counterintelligence resources fending off Israeli spy operations than any other close ally, U.S. officials said.
  • A senior official in the prime minister’s office said Monday: “These allegations are utterly false. The state of Israel does not conduct espionage against the United States or Israel’s other allies. The false allegations are clearly intended to undermine the strong ties between the United States and Israel and the security and intelligence relationship we share.” Current and former Israeli officials said their intelligence agencies scaled back their targeting of U.S. officials after the jailing nearly 30 years ago of American Jonathan Pollard for passing secrets to Israel. While U.S. officials may not be direct targets, current and former officials said, Israeli intelligence agencies sweep up communications between U.S. officials and parties targeted by the Israelis, including Iran. Americans shouldn’t be surprised, said a person familiar with the Israeli practice, since U.S. intelligence agencies helped the Israelis build a system to listen in on high-level Iranian communications.
  • As secret talks with Iran progressed into 2013, U.S. intelligence agencies monitored Israel’s communications to see if the country knew of the negotiations. Mr. Obama didn’t tell Mr. Netanyahu until September 2013. Israeli officials, who said they had already learned about the talks through their own channels, told their U.S. counterparts they were upset about being excluded. “ ‘Did the administration really believe we wouldn’t find out?’ ” Israeli officials said, according to a former U.S. official.
  • The episode cemented Mr. Netanyahu’s concern that Mr. Obama was bent on clinching a deal with Iran whether or not it served Israel’s best interests, Israeli officials said. Obama administration officials said the president was committed to preventing Iran from developing nuclear weapons. Mr. Dermer started lobbying U.S. lawmakers just before the U.S. and other powers signed an interim agreement with Iran in November 2013. Mr. Netanyahu and Mr. Dermer went to Congress after seeing they had little influence on the White House. Before the interim deal was made public, Mr. Dermer gave lawmakers Israel’s analysis: The U.S. offer would dramatically undermine economic sanctions on Iran, according to congressional officials who took part. After learning about the briefings, the White House dispatched senior officials to counter Mr. Dermer. The officials told lawmakers that Israel’s analysis exaggerated the sanctions relief by as much as 10 times, meeting participants said.
  • When the next round of negotiations with Iran started in Switzerland last year, U.S. counterintelligence agents told members of the U.S. negotiating team that Israel would likely try to penetrate their communications, a senior Obama administration official said. The U.S. routinely shares information with its European counterparts and others to coordinate negotiating positions. While U.S. intelligence officials believe secured U.S. communications are relatively safe from the Israelis, they say European communications are vulnerable. Mr. Netanyahu and his top advisers received confidential updates on the Geneva talks from Undersecretary of State for Political Affairs Wendy Sherman and other U.S. officials, who knew at the time that Israeli intelligence was working to fill in any gaps. The White House eventually curtailed the briefings, U.S. officials said, withholding sensitive information for fear of leaks. Current and former Israeli officials said their intelligence agencies can get much of the information they seek by targeting Iranians and others in the region who are communicating with countries in the talks. In November, the Israelis learned the contents of a proposed deal offered by the U.S. but ultimately rejected by Iran, U.S. and Israeli officials said. Israeli officials told their U.S. counterparts the terms offered insufficient protections.
  • U.S. officials urged the Israelis to give the negotiations a chance. But Mr. Netanyahu’s top advisers concluded the emerging deal was unacceptable. The White House was making too many concessions, Israeli officials said, while the Iranians were holding firm. Obama administration officials reject that view, saying Israel was making impossible demands that Iran would never accept. “The president has made clear time and again that no deal is better than a bad deal,” a senior administration official said. In January, Mr. Netanyahu told the White House his government intended to oppose the Iran deal but didn’t explain how, U.S. and Israeli officials said. On Jan. 21, House Speaker John Boehner (R., Ohio) announced Mr. Netanyahu would address a joint meeting of Congress. That same day, Mr. Dermer and other Israeli officials visited Capitol Hill to brief lawmakers and aides, seeking a bipartisan coalition large enough to block or amend any deal. Most Republicans were already prepared to challenge the White House on the negotiations, so Mr. Dermer focused on Democrats. “This deal is bad,” he said in one briefing, according to participants.
  • A spokesman for the Israeli embassy in Washington, Aaron Sagui, said Mr. Dermer didn’t launch a special campaign on Jan 21. Mr. Dermer, the spokesperson said, has “consistently briefed both Republican and Democrats, senators and congressmen, on Israel’s concerns regarding the Iran negotiations for over a year.” Mr. Dermer and other Israeli officials over the following weeks gave lawmakers and their aides information the White House was trying to keep secret, including how the emerging deal could allow Iran to operate around 6,500 centrifuges, devices used to process nuclear material, said congressional officials who attended the briefings. The Israeli officials told lawmakers that Iran would also be permitted to deploy advanced IR-4 centrifuges that could process fuel on a larger scale, meeting participants and administration officials said. Israeli officials said such fuel, which under the emerging deal would be intended for energy plants, could be used to one day build nuclear bombs. The information in the briefings, Israeli officials said, was widely known among the countries participating in the negotiations. When asked in February during one briefing where Israel got its inside information, the Israeli officials said their sources included the French and British governments, as well as their own intelligence, according to people there.
  • “Ambassador Dermer never shared confidential intelligence information with members of Congress,” Mr. Sagui said. “His briefings did not include specific details from the negotiations, including the length of the agreement or the number of centrifuges Iran would be able to keep.” Current and former U.S. officials confirmed that the number and type of centrifuges cited in the briefings were part of the discussions. But they said the briefings were misleading because Israeli officials didn’t disclose concessions asked of Iran. Those included giving up stockpiles of nuclear material, as well as modifying the advanced centrifuges to slow output, these officials said. The administration didn’t brief lawmakers on the centrifuge numbers and other details at the time because the information was classified and the details were still in flux, current and former U.S. officials said. Unexpected reaction The congressional briefings and Mr. Netanyahu’s decision to address a joint meeting of Congress on the emerging deal sparked a backlash among many Democratic lawmakers, congressional aides said.
  • On Feb. 3, Mr. Dermer huddled with Sen. Joe Manchin, a West Virginia Democrat, who said he told Mr. Dermer it was a breach of protocol for Mr. Netanyahu to accept an invitation from Mr. Boehner without going through the White House. Mr. Manchin said he told Mr. Dermer he would attend the prime minister’s speech to Congress, but he was noncommittal about supporting any move by Congress to block a deal. Mr. Dermer spent the following day doing damage control with Sen. Kirsten Gillibrand, a New York Democrat, congressional aides said. Two days later, Mr. Dermer met with Sen. Dianne Feinstein of California, the top Democrat on the SenateIntelligence Committee, at her Washington, D.C., home. He pressed for her support because he knew that she, too, was angry about Mr. Netanyahu’s planned appearance. Ms. Feinstein said afterward she would oppose legislation allowing Congress to vote down an agreement.
  • Congressional aides and Israeli officials now say Israel’s coalition in Congress is short the votes needed to pass legislation that could overcome a presidential veto, although that could change. In response, Israeli officials said, Mr. Netanyahu was pursuing other ways to pressure the White House. This week, Mr. Netanyahu sent a delegation to France, which has been more closely aligned with Israel on the nuclear talks and which could throw obstacles in Mr. Obama’s way before a deal is signed. The Obama administration, meanwhile, is stepping up its outreach to Paris to blunt the Israeli push. “If you’re wondering whether something serious has shifted here, the answer is yes,” a senior U.S. official said. “These things leave scars.”
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    Obama is moving preemptively to blunt Israel's influence in Congress on the Iran negotiation.
Paul Merrell

New Zealand Spied on WTO Director Candidates - The Intercept - 0 views

  • New Zealand launched a covert surveillance operation targeting candidates vying to be director general of the World Trade Organization, a top-secret document reveals. In the period leading up to the May 2013 appointment, the country’s electronic eavesdropping agency programmed an Internet spying system to intercept emails about a list of high-profile candidates from Brazil, Costa Rica, Ghana, Indonesia, Jordan, Kenya, Mexico and South Korea. New Zealand’s trade minister, Tim Groser, was one of nine candidates in contention for the position at the WTO, a powerful international organization based in Geneva, Switzerland that negotiates trade agreements between nations. The surveillance operation, carried out by Government Communications Security Bureau, or GCSB, appears to have been part of a secret effort to help Groser win the job. Groser ultimately failed to get the position.
Paul Merrell

Israeli - Turkish Charade About Gaza Continues - nsnbc international | nsnbc international - 0 views

  • Israel and Turkey reportedly held secret talks in Switzerland, aimed at reaching an understanding about normalizing relations which have been tense since the 2010 raid on the Gaza Freedom Flotilla vessel Mavi Marmara. The “tense relations” about the incident have, however, already been “normalized” weeks after the incident that involved cooperation between Turkish and Israeli intelligence services. 
  • Raid on Mavi Marmara a Joint Israeli – Turkish / NATO Intelligence Hit in Preparation of the War on Syria. nsnbc international previously reported that the Israeli raid on the Mavi Marmara was a joint Israeli – Turkish / NATO intelligence hit. The Mavi Marmara is owned by the Turkish Charity IHH which according to reliable source with insight into Turkish intelligence services is deeply infiltrated by and often acts as cover for Turkey’s National Security Service (MIT), in 2010 led by Hakan Fidan.
  • Almost all of the nine Turkish citizens on board of the Mavi Marmara who were killed during the Israeli raid in international waters were linked to Turkey’s Muslim Brotherhood and opposed to Turkey’s AKP government’s plans to launch a war against neighboring Syria the following year. It is noteworthy that the second in command of the Libyan Islamic Fighting Group (LIFG), Mahdi Al-Harati was on board the Mavi Marmara. The dual Irish – Libyan citizen is a long-standing asset of Britain’s foreign intelligence service MI6. Al-Harati’s function on board the ship was to provide information to Israel where on board the individuals that were to be targeted while the raid was in progress. Mahdi Al-Harati would, in 2012, lead the about 23,000 strong Libyan Brigade via the Jordanian border town Al-Mafraq into Syria. Two campaigns to conquer the city of Homs in June and July 2012, led by Al-Harati failed. LIFG first in command, Abdelhakim Belhadj, would after the ouster of the Libyan government in 2011 become the head of the Turkish and NATO-backed Tripoli Military Council.
Paul Merrell

Japan's Fukushima Prefecture Shows Wave of Mutations - nsnbc international | nsnbc inte... - 0 views

  • Japanese researchers are reluctant to comment, but more than 90 percent of fir trees in forests close to the crippled Fukushima Daiichi Nuclear Power Plant (NPP) show signs of mutations and abnormalities while plant lice species sampled in a town more than 30 kilometers from the disaster site either have deformed legs or are missing legs. The mutations are a probable precursor of what is in store for Japanese people who are being resettled in allegedly de-contaminated towns and villages.
  • Japanese scientists are reluctant to comment on the record. Several attempts by nsnbc to reach out resulted in off-protocol confirmations of suspicions and references to Japanese law that makes revealing of unauthorized information about the Fukushima disaster a criminal offense that can be punishable with up to ten years in prison. The official line is that Japanese scientists are trying to figure out whether there is a causal relation between the wave of mutations and the still ongoing release of radiation and radionucleides into the environment. Studies focus primarily on hos radioactive cesium spread in forests and forest soil after the catastrophic triple meltdown at the TEPCO operated Fukushima Daiichi NPP after it was struck by an earthquake and a subsequent tsunami in 2011. Results of a 2013 study already revealed that levels of the radioactive isotope cesium from the crippled Fukushima Daiichi power plant in northern Japanese forests had almost doubled within one year and that it will continue increasing as the forests bioaccumulate the isotope. The 2013 study and ongoing studies have major ramifications even though these studies largely ignore a cohort of other, potentially more dangerous isotopes such as plutonium.
  • The wave of mutations in insects, fir trees and other animals is according to Japanese experts who are relutant to speak on the record a precursor for what populations who live within a 100 km radius of the crippled power-plant can expect to see in human populations. The Japanese government’s push for resettling populations that were evacuated to so-called de-contaminated villages and towns is particularly problematic and controversial. The Japanese government’s definition of a de-contaminated village, for example, means that the village itself and an area of a few hundred meters leading to these villages have been de-contaminated by e.g. top-sol removal. Water and airborne isotopes will, however, move with the waters and winds and easily re-contaminate these so-called safe zones. Evacuees who refuse to be resettled risk losing government support. Another serious issue is that radioactive contaminated waste from the region is incinerated in facilities throughout Japan, thus spreading airborne contamination throughout the entire country. Some critics stress that this program may aim at making it extremely difficult to conduct epidemiological studies.
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  • In November 2015 the former Japanese Ambassador to Switzerland, Mitshei Murata, called on the President of the International Olympic Committee to move the 2020 Olympics from Tokyo or to cancel the games. Murata noted that he, as many others feel the Olympic Summer Games under these circumstances should be canceled and the preparations abandoned. Murata wrote: Not only do we have a continued contamination of the groundwater and the Pacific Ocean by the unstable plant, but the brittle structure of the damaged plant represents itself a serious threat, in particular in our earthquake prone region. Given the relative proximity of Tokyo, just some 200km South of Fukushima, represents in my view an ongoing risk for our largest city, for its citizens and all visitors. You might agree that one more alarming development as the recent earthquake of magnitude 8.1 just some weeks ago might indeed increase the pressure to stop the planning process of the 2020 games all together.
Paul Merrell

Negative Interest Rates Show Desperation of Central Banks Washington's Blog - 0 views

  • Japan has joined the EU, Denmark, Switzerland and Sweden in imposing negative interest rates. Indeed, more than a fifth of the world’s GDP is now covered by a central bank with negative interest rates.
  • And negative rates will eventually come to America. Central bankers are implementing negative interest rates to force savers to buy assets … so as to artificially stimulate the economy. Specifically: A negative interest rate means the central bank and perhaps private banks will charge negative interest: instead of receiving money on deposits, depositors must pay regularly to keep their money with the bank. This is intended to incentivize banks to lend money more freely and businesses and individuals to invest, lend, and spend money rather than pay a fee to keep it safe. Next up: The war on cash. Postscript: Ironically, the Fed has gone to great lengths to DISCOURAGE banks from lending to Main Street.
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