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Paul Merrell

Edward Snowden says Hillary Clinton 'ridiculous' to think emails were secure | US news ... - 0 views

  • Edward Snowden has branded as “completely ridiculous” the idea that Hillary Clinton’s personal email server was secure while she was secretary of state. The National Security Agency whistleblower was speaking in an interview with Al-Jazeera. In 2014, Clinton accused Snowden of inadvertently helping terrorists. Since then she has toned down such criticism and said the NSA needs to be more transparent. On Thursday, Snowden was asked what he would say to Clinton now that she is being investigated for sending emails containing classified information while using a private server. “This is a problem,” Snowden said, “because anyone who has the clearances that the secretary of state has, or the director of any top-level agency has, knows how classified information should be handled.”
  • He added: “If an ordinary worker at the State Department or the CIA … were sending details about the security of embassies, which is alleged to be in her email, meetings with private government officials, foreign government officials and the statements that were made to them in confidence over unclassified email systems, they would not only lose their jobs and lose their clearance, they would very likely face prosecution for it.”
  • He did comment on Clinton’s choice of email server, Platte River Networks. “When the unclassified systems of the United States government, which has a full-time information security staff, regularly gets hacked, the idea that someone keeping a private server in the renovated bathroom of a server farm in Colorado is more secure is completely ridiculous,” he said.
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  • He went on to question the credibility of politicians like John Kerry, Clinton’s successor as secretary of state, and compared “the good that they’re doing for the country” to the work of people like Jimmy Wales, the co-founder of Wikipedia, who he said was “improving the world”.
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    Is that a wooden stake you're holding in your hand, Edward? And what's the sledge hammer for?
Paul Merrell

Netanyahu seeks to snatch victory from jaws of defeat on Iran deal - The Washington Post - 0 views

  • No political leader fought longer or harder against the Iran nuclear deal than Israeli Prime Minister Benjamin Netanyahu, who appears to have suffered the worst foreign policy ­defeat of his career following the announcement that President Obama has secured enough votes in the Senate to preserve the pact. Yet senior Israeli officials close to Netanyahu are saying that their prime minister has not failed — but won, in a way.
  • ith a looming defeat in Congress, Netanyahu’s aides and allies now say the prime minister and his closest adviser, Ron Dermer, Israel’s American-born ambassador to the United States, never really believed they could stop the deal in Congress — they only wanted to alert the world how dangerous Iran is.
  • may not matter much at home that the Israelis’ spin does not match previous assertions by Netanyahu, who said the deal could be defeated in Congress. It was the reason, the prime minister said, that he accepted an invitation by the Republican leadership to address Congress in March.
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  • solid majority in Congress and among the American people” agrees with Netanyahu’s assertion that the deal is a bad one, a top Israeli official close to Netanyahu said. Yet recent polling is not so definitive. According to a survey released this week by the University of Maryland’s Program for Public Consultation, Americans narrowly support the deal, with 52 percent wanting Congress to approve it and 47 percent wanting the pact rejected. Other polls have shown greater opposition.
  • he same aides and allies say that Netanyahu is playing a longer game, that the deal is so unpopular now that the next president will abandon, change or undermine it. Republican candidates for president, including Donald Trump and Jeb Bush, have vigorously opposed the deal. Democratic front-runner Hillary Rodham Clinton announced support.
  • inally, officials here predict that when the dust settles, Israel will receive a windfall in new, advanced weaponry — including the most modern aircraft and missile technology — from members of Congress eager to show their pro-Israel bona fides and demonstrate that they remain steadfast enemies of Iran, even if some may have backed Obama on the nuclear pact. “Look at how they are spinning it. It’s not a defeat; it’s a success. And based on opposition in Congress and some polling in the United States, the spin is technically correct,” said Yossi Alpher, a political analyst and author of “Periphery: Israel’s Search for Middle East Allies.”
  • hen the news cycle shifts in coming weeks to arms packages, economic aid and proclamations of U.S. support, “Netanyahu will be able to say, ‘My opposition didn’t cost us a thing,’ ” Alpher said. “Netanyahu’s playing it cool,” he said. “If we pay attention, we would have noticed that for the last week or two, Netanyahu has lowered his rhetoric. He’s a little calmer, and the reason is that it became clear to him — if he ever thought he had a good chance — that an override of the veto was not going to happen,” said Yehuda Ben Meir, a senior research fellow at the Institute for National Security Studies in Tel Aviv.
  • me Israeli analysts also wonder what Netanyahu’s opposition will cost Israel and American Jews. Robert Wexler, a former Democratic congressman from Florida who now heads the S. Daniel Abraham Center for Middle East Peace, said that Netanyahu “compromised the efforts of his own allies” in Washington when he “thrust himself into American politics without understanding the consequences of his actions.” Wexler faulted Netanyahu for, in effect, “requesting that the American Jewish community rise up against an American president.” Domestically, the prime minister might not pay a price for his defeat, if it can be called that. Instead, he may be seen as Israel’s great defender. Public opinion about the loss in Congress is still evolving here; many ordinary Israelis seem to think that there’s still a chance of killing the deal. The front-page headline Thursday in Yedioth Ahronoth, Israel’s largest paid newspaper, was “Achievement for Obama, Blow to Netanyahu.” The headline in Israel Hayom, a free paper with a huge circulation that is owned by the prime minister’s close friend, the billionaire U.S. casino magnate Sheldon Adelson, was, “Official: A Majority in U.S. Agrees With Us.”
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    All spin except the boost in Israel funding. But the BDS Movement is gaining ground so fast in the U.S. that Israel's U.S. funding won't last much longer.
Gary Edwards

Saudi Arabia Plunges into an Abyss - Global Guerrillas - 0 views

  • However, ISIS trumped this effort with Charlie Hebdo.  It will be difficult for the Saudis to convince the west they are the real target after the attack in Paris.  Here's what this means: We're likely to see ISIS make a big push into Saudi Arabia this spring.  This push may result in some very, very rapid gains by ISIS as Saudi troops melt away and/or join ISIS.  The big question?  If ISIS does gain a foothold: do the Saudi's accept foreign troops/airpower at the cost of their legitimacy, or do they go down fighting solo? The oil price dip we're currently experiencing will rapidly reverse as soon as it's clear that ISIS is gearing up a real jihad to retake Mecca and Medina.  $150 a barrel or more by the end of the year, once this gets going (or much more as it puts all of the gulf aristos in full panic mode simultaneously).  The rapid swing in oil price will plunge the perpetually stagnant western economies into a simultaneous rout.  However, as bad as that will be, it will of little consequence compared to the damage the global financial system will do to us as hundreds of trillions of dollars in explosive financial derivatives topple the ziggurat of western debt we've so foolishly built.
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    "Saudi Arabia Plunges into an Abyss Last week, just before the Charlie Hebdo attack, ISIS sent a suicide team across the border into Saudi Arabia.  Here's what happened. The attack was successful.  The team found and killed the Saudi general (Oudah al-Belawi) in charge of the country's nothern border zone at the outpost he was visiting (here's a pic of the state funeral for some of the men killed in the attack). The target was significant.  General Oudah al-Belawi was in charge of the multi-billion dollar Saudi effort to secure the northern border against ISIS.  Not only has Saudi Arabia sent 30,000 additional troops to guard the northern border, it's building a highly automated 600-mi security wall to protect itself (lots of robots and sensors).  Here's a great graphic of the monstrosity from the Telegraph.  My take:  What a waste of time and effort.  "
Paul Merrell

Why Russia Matters to the Boston Bombing Suspect's Defense - WhoWhatWhy - 0 views

  • But a close look at the nature of the information Tsarnaev’s defense team has repeatedly requested from prosecutors in motions to the court suggests Tsarnaev’s lawyers are trying to pry loose something about the government’s relationship with the Tsarnaevs prior to the bombing on April 15, 2013.The key to this relationship may lie in a store of information that the Russians delivered to U.S. investigators in the days after the bombing. Equally, it may be found in warnings Moscow delivered to U.S. investigators before the attack. Either way, the U.S. government has fought hard to keep the lid on what it knows.The defense team’s motive in asking for such information is clear enough: they are angling for anything that might convince jurors to spare their client’s life. But the government’s stonewalling raises serious questions about why it wants to keep secret what the Russians knew about the Tsarnaevs, and how and when this information reached the FBI and the CIA.
  • Already, Tsarnaev is facing an uphill battle because of a widespread presumption of his guilt—a presumption fed, in large part, by law enforcement leaks and an unquestioning media. The FBI has been waging an apparent war on witnesses, characterized by the scorched-earth tactic of intimidating, arresting, deporting, and, in one case, killing them. That has rendered them inaccessible to Tsarnaev’s defense.These hardball tactics appear to be just part of the government strategy of suppressing information in the case. The Justice Department’s trump card is the ability to withhold information based on national security claims. That is in addition to an overwhelming financial advantage.
  • The defense team has thus repeatedly had to ask U.S. District Judge George A. O’Toole Jr. to compel the government to release information. That has eaten up a lot of time critical in preparing the defense case.Not that Tsarnaev has been given much of it. One statistic tells the story: Tsarnaev’s team has had about half of the preparation time that defense lawyers in federal death penalty cases have been granted over the past decade—18 months versus a median of 36. So the prospects for getting the whole story behind the bombing laid out in open court look bleak.
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  • All of this brings up numerous questions, not the least of which are:
  • But is there more to the government’s obstruction tactics? Is there something in those conversations that the government doesn’t want to come up at trial? After all, it was the Tsarnaev family that repeatedly claimed the FBI tried to recruit Tamerlan as an informant—a claim the agency quickly batted down as ridiculous.However, the aggressive and well-documented efforts by the FBI to infiltrate the Muslim community with informants and provocateurs makes the FBI’s denials ring a little hollow.
  • But is there another reason for the government’s stonewalling? Is the deeper motive to suppress evidence that could uncover serious government misjudgments or, worse, malfeasance?Despite the fact that the U.S. government’s relationship with the Tsarnaevs prior to the bombing has great relevance to victims of the bombing—and to the public at large—current national security classification rules make it unlikely that such information will ever see the light of day.It’s important to note that defense lawyer Clarke has made a career out of keeping high-profile individuals presumed to be guilty out of the proverbial electric chair. In this case, maybe she senses a cover-up.In the process of trying to keep Tsarnaev alive, it may be that she and her team will make a crack in the walls protecting the truth about what the government knew, and when.
Paul Merrell

CISA Security Bill: An F for Security But an A+ for Spying | WIRED - 0 views

  • When the Senate Intelligence Committee passed the Cybersecurity Information Sharing Act by a vote of 14 to 1, committee chairman Senator Richard Burr argued that it successfully balanced security and privacy. Fifteen new amendments to the bill, he said, were designed to protect internet users’ personal information while enabling new ways for companies and federal agencies to coordinate responses to cyberattacks. But critics within the security and privacy communities still have two fundamental problems with the legislation: First, they say, the proposed cybersecurity act won’t actually boost security. And second, the “information sharing” it describes sounds more than ever like a backchannel for surveillance.
  • On Tuesday the bill’s authors released the full, updated text of the CISA legislation passed last week, and critics say the changes have done little to assuage their fears about wanton sharing of Americans’ private data. In fact, legal analysts say the changes actually widen the backdoor leading from private firms to intelligence agencies. “It’s a complete failure to strengthen the privacy protections of the bill,” says Robyn Greene, a policy lawyer for the Open Technology Institute, which joined a coalition of dozens of non-profits and cybersecurity experts criticizing the bill in an open letter earlier this month. “None of the [privacy-related] points we raised in our coalition letter to the committee was effectively addressed.” The central concern of that letter was how the same data sharing meant to bolster cybersecurity for companies and the government opens massive surveillance loopholes. The bill, as worded, lets a private company share with the Department of Homeland Security any information construed as a cybersecurity threat “notwithstanding any other provision of law.” That means CISA trumps privacy laws like the Electronic Communication Privacy Act of 1986 and the Privacy Act of 1974, which restrict eavesdropping and sharing of users’ communications. And once the DHS obtains the information, it would automatically be shared with the NSA, the Department of Defense (including Cyber Command), and the Office of the Director of National Intelligence.
  • In a statement posted to his website yesterday, Senator Burr wrote that “Information sharing is purely voluntary and companies can only share cyber-threat information and the government may only use shared data for cybersecurity purposes.” But in fact, the bill’s data sharing isn’t limited to cybersecurity “threat indicators”—warnings of incoming hacker attacks, which is the central data CISA is meant to disseminate among companies and three-letter agencies. OTI’s Greene says it also gives companies a mandate to share with the government any data related to imminent terrorist attacks, weapons of mass destruction, or even other information related to violent crimes like robbery and carjacking. 
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  • The latest update to the bill tacks on yet another kind of information, anything related to impending “serious economic harm.” All of those vague terms, Greene argues, widen the pipe of data that companies can send the government, expanding CISA into a surveillance system for the intelligence community and domestic law enforcement. If information-sharing legislation does not include adequate privacy protections, then...It’s a surveillance bill by another name. Senator Ron Wyden
  • “CISA goes far beyond [cybersecurity], and permits law enforcement to use information it receives for investigations and prosecutions of a wide range of crimes involving any level of physical force,” reads the letter from the coalition opposing CISA. “The lack of use limitations creates yet another loophole for law enforcement to conduct backdoor searches on Americans—including searches of digital communications that would otherwise require law enforcement to obtain a warrant based on probable cause. This undermines Fourth Amendment protections and constitutional principles.”
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    I read the legislation. It's as bad for privacy as described in the aritcle. And its drafting is incredibly sloppy.
Paul Merrell

Judge sticks by decision to release Guantánamo force-feeding videos | Miami H... - 0 views

  • With some sharp words for the Obama administration, a federal judge on Tuesday declined to second-guess her earlier decision ordering the release of videos of a Guantánamo detainee being force-fed. While acknowledging that more appeals are on the way in the long-running case, U.S. District Judge Gladys Kessler said in her nine-page decision that nothing has happened to change her mind about the videos. She first ordered their release in October 2014.
  • “What the government is really saying is that its classification system trumps the decisions of the federal courts as to the public’s access to official court records,” Kessler wrote. “In other words, the Executive Branch (in this case, the military) purports to be a law unto itself.” 11 hours: the prison camp videos the judge ordered redacted then released, a year ago Kessler added that “the government’s justifications for barring the American public from seeing the videotapes are not sufficiently rational and plausible to justify barring release of the videotapes.” Sixteen media organizations, including the New York Times, Associated Press and McClatchy, have joined in seeking release of the Guantánamo tapes to the public on First Amendment grounds.
Paul Merrell

You have now landed in Geneva, Syria - RT Op-Edge - 0 views

  • The alleged Syrian peace process now enters its Geneva charade stage. This could last months; get ready for lavish doses of posturing and bluster capable of stunning even Donald Trump.
  • And that brings us to Ankara’s nightmares. Russian Air Force smashed most of Ankara’s Turkmen proxies - heavily infiltrated by Turkish fascists - in northwest Syria. That was the key reason for Sultan Erdogan’s desperate move of shooting down the Su-24.It’s by now clear that the winners, as it stands, on the ground, are the “4+1”, and the losers are Saudi Arabia and Turkey. So no wonder the Saudis want at least some of their proxies at the negotiating table in Geneva, while Turkey tries to change the subject by barring the Syrian Kurds: these are accused of being terrorists, much more than ISIS/ISIL/Daesh.    
  • As if this was not messy enough, US ‘Think Tankland’ is now spinning there is an “understanding” between Washington and Ankara for what will be, for all practical purposes, a Turkish invasion of northern Syria, under the pretext of Ankara smashing ISIS/ISIL/Daesh in northern Aleppo.This is utter nonsense. Ankara’s game is three-pronged; prop up their heavily battered Turkmen proxies; keep very much alive the corridor to Aleppo – a corridor that crucially includes the Jihadi Highway between Turkey and Syria; and most of all prevent by all means necessary that YPG Kurds bridge the gap from Afrin to Kobani and unite all three Syrian Kurd cantons near the Turkish border.None of this has anything to do with fighting ISISL/ISIL/Daesh. And the nuttiest part is that Washington is actually assisting the Syrian Kurds with air support. Either the Pentagon supports the Syrian Kurds or Erdogan’s invasion of northern Syria; schizophrenia does not apply here.A desperate Erdogan may be foolish enough to confront the Russian Air Force during his purported “invasion”. Putin is on the record saying response to any provocation will be immediate, and lethal. To top it off, the Russians and Americans are actually coordinating airspace action in northern Syria.  
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  • This is bound to be the next big thing, fully eclipsing the Geneva pantomime. The YPG and its allies are planning a major attack to finally seize the 100-kilometer stretch of the Syria-Turkey border still controlled by ISIS/ISIL/Daesh – thus reuniting their three cantons.Erdogan was blunt; if the YPG pushes west of the Euphrates, it’s war. Well, looks like war then. The YPG is getting ready to attack the crucial towns of Jarabulus and Manbij. Russia most certainly will aid the YPG to reconquer Jarabulus. And that will directly pit – once again - Turkey against Russia on the ground.Geneva? That’s for tourists; the capital of the Syrian horror show is now Jarabulus.
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    Pepe Escobar says war between Turkey and Russia in Syria is in the offing. 
Gary Edwards

Hating the Establishment Is Not the Same as Supporting Liberty | Foundation for Economi... - 1 views

  • You might point to the American Revolution as a contrary case. We tossed out the British monarchy and invented freedom! But think again. The war itself created a new establishment consisting of politicians, military generals, bond dealers, and influential landholders.
  • Twelve years after the Declaration of Independence, these groups got together and formed a new government that, in time, became as oppressive and restrictive — and in some ways, more so — as the one the revolutionaries overthrew. And this occurred despite the existence of classical liberal political norms and intellectual culture.
  • He has said nothing about dismantling power.
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  • Indeed, he is on record with his desire to radically expand the power of the state.
  • He wants surveillance, controls on the internet, religious tests for migration, war-like tariffs, industrial planning, and autocratic foreign-policy power. He’s praised police power and toyed with ideas such as internment and killings of political enemies. His entire governing philosophy boils down to arbitrary, free-wheeling authoritarianism.
  • As for Sanders, everything that is bad about the current establishment he promises to make worse with more programs, bureaucracy, taxes, controls, and government power in order to making life fair, just, and equitable. He speaks as if he’s never heard of the failed history of socialism and certainly hasn’t learned anything from it.
  • The ideal is liberty, not the overthrow of existing elite structures as such.
  • They resist rampant populism that would lead to a pillaging of the nation that is serving them so well.
  • To understand Machiavelli, realize that his black beast was the cleric Savonarola, Florence’s quasi-dictator who led a mass movement of crazed pietists who pillaged and burned material possessions as a pathway to heaven. The Bonfire of the Vanities of 1487 was one result. This is exactly the kind of mania that establishments exist to keep at bay.
  • The main payout is the control of the state apparatus that outlives the establishment’s overthrow. It makes sense that the results will tend to be more ruthless, vengeful, and bloody than anything that came before.
  • Establishments are as Machiavelli described: stable machines that keep competitors at bay but otherwise seek to make the system work for themselves.
  • The goal should be the tearing down of power itself and its replacement by simple human rights and a society that functions according to civilized standards.
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    "But there's a problem. The state power we oppose is not identical to the establishment we reject. You can overthrow the establishment and still be left with a gigantic machinery of legalized exploitation. All the agencies, laws, regulations, and powers are still in place. And now you have a problem: someone else is in charge of the state itself. You might call it a new establishment. It could be even more wicked than the one you swept away. Indeed, it usually is. Maybe always. Anatomy of the Establishment What is an establishment? It is a network of large and cooperating interest groups that have developed a stable relationship with state power. It includes finance, organized labor, public bureaucrats, government contractors, big businesses with quid pro quo relationships with regulators and politicians, political families with a strong stake in the election process, intellectuals at state-friendly think tanks and universities, and so on."
Paul Merrell

Guide to the Presidential Candidates' National Security Positions | Just Security - 0 views

  • Last spring, we launched the first version of Just Security’s guide to the 2016 presidential candidates’ positions on national security matters. We’re relaunching that guide below with interactive features designed to make it easier use. For this version of the guide, we’re focusing on candidates who, according to Five Thirty-Eight’s forecasts, have a better than 10 percent chance of winning a primary. As a result, this version includes Hillary Clinton, Ted Cruz, Marco Rubio, Bernie Sanders, and Donald Trump. As the field shifts over the coming weeks, we may add or remove candidates from this list. We’ll also be periodically updating the information about the candidates’ positions as they wind their way through primary season and move into the general election. This guide features sources for each summary and, whenever possible, cites official government websites or the candidates’ websites. In our research, we relied on their own statements and records rather than commentary on the candidates’ positions.
Paul Merrell

Ron Paul Slams Cruz And Hillary: They Are Both "Owned By Goldman" | Zero Hedge - 1 views

  • Now that Rand Paul is out of the race for the White House, Politico's Eliza Collins reports that his father Ron Paul, who ran in 2008 and 2012, isn't impressed by Ted Cruz's attempts to pick up the "free market" libertarian banner. “You take a guy like Cruz, people are liking the Cruz — they think he’s for the free market, and [in reality] he’s owned by Goldman Sachs. I mean, he and Hillary have more in common than we would have with either Cruz or Trump or any of them so I just don’t think there is much picking,” Paul said of the Texas senator on Fox Business’ “Varney & Company" on Friday.
  • Surprisingly, the elder Paul seemed more attracted to the views of Vermont Sen. Bernie Sanders, who is giving Hillary Clinton a run for her money in the Democratic primary. “On occasion, Bernie comes up with libertarian views when he talks about taking away the cronyism on Wall Street, so in essence he’s right, and occasionally he voted against war,” the former Texas congressman said when asked if there was a candidate who was truly for the free market. "It's hard to find anybody -- since Rand is out of it -- anybody that would take a libertarian position, hardcore libertarian position on privacy, on the war issue and on economic policy," Paul added. “So I always say: You can search for a long time, but you’re not gonna find anybody in the Republican or Democratic primary that even comes slightly close to ever being able to claim themselves a libertarian,” he concluded.
Paul Merrell

Bowe Bergdahl to Face Court-Martial on Desertion Charges - The New York Times - 0 views

  • A top Army commander on Monday ordered that Sgt. Bowe Bergdahl face a court-martial on charges of desertion and endangering troops stemming from his decision to leave his outpost in 2009, a move that prompted a huge manhunt in the wilds of eastern Afghanistan and landed him in nearly five years of harsh Taliban captivity. The decision by Gen. Robert B. Abrams, head of Army Forces Command at Fort Bragg, N.C., means that Sergeant Bergdahl, 29, faces a possible life sentence. That is a far more serious penalty than had been recommended by the Army’s investigating officer, who testified at the sergeant’s preliminary hearing in September that prison would be “inappropriate.”
  • According to Sergeant Bergdahl’s defense lawyers, the Army lawyer who presided over the preliminary hearing also recommended that he face neither jail time nor a punitive discharge and that he go before an intermediate tribunal known as a “special court-martial,” where the most severe penalty possible would be a year of confinement.
  • Monday’s decision rejecting that recommendation means that Sergeant Bergdahl now faces a maximum five-year penalty if ultimately convicted by a military jury of desertion, as well as potential life imprisonment on the more serious charge of misbehavior before the enemy, which in this case means endangering the troops who were sent to search for him after he disappeared.Sergeant Bergdahl has been the focus of attacks by Republicans in Congress and on the presidential campaign, and it is far from clear that General Abrams’s decision will temper their criticisms.Donald J. Trump, for one, has called the sergeant a “traitor” who should be executed, while Senator John McCain, Republican of Arizona and the chairman of the Armed Services Committee, has vowed to hold hearings if the sergeant is not punished.
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  • Last week, House Republicans issued a report portraying as reckless and illegal Mr. Obama’s decision in May 2014 to swap Sergeant Bergdahl for five Taliban detainees who were being held at Guantánamo Bay, Cuba.
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    A shame. There's a strong appearance that politics is playing a strong role in the military decision to prosecute Bergdahl. But 5 years in captivity would seem to be punishment enough to me.
Paul Merrell

Martin Shkreli Arrested on Securities Fraud Charges - 0 views

  • Martin Shkreli, a boastful pharmaceutical executive who came under withering criticism for price gouging vital drugs, denied securities fraud charges on Thursday following an early morning arrest, and was freed on a $5 million bond. While the 32-year-old has earned a rare level of infamy for his brazenness in business and his personal life, what he was charged with had nothing to do with skyrocketing drug prices. He is accused of repeatedly losing money for investors and lying to them about it, illegally taking assets from one of his companies to pay off debtors in another. “Shkreli essentially ran his company like a Ponzi scheme where he used each subsequent company to pay off defrauded investors from the prior company,” Brooklyn U.S. Attorney Robert Capers said at a press conference.
  • Evan Greebel, a New York lawyer, who is alleged in the federal indictment to have helped Shkreli in his schemes, was also arrested and charged. Like Shkreli, he pleaded not guilty, and he was freed on a $1 million bond. Both men and their lawyers declined to comment after their court appearance.
  • Read the full text of the indictment here In the federal indictment and a complaint by the Securities and Exchange Commission, authorities say Shkreli began losing money and lying to investors from the time he began managing money. In his mid-20s, he got nine investors to place $3 million with him and at one point he had only $331. Securities fraud is hardly unheard of on Wall Streeet and the amounts involved here are nowhere near on the scale of Bernie Madoff. But Shkreli’s case has drawn such attention because of his defiant price-gouging and his own up-by-the-bootstraps history. The son of immigrants from Albania and Croatia who did janitorial work and raised him and his brothers in working-class Brooklyn, Shkreli seemed at first to embody the American dream and then to mock it. After dropping out of an elite Manhattan high school, he worked as an intern for Jim Cramer’s hedge fund as a 17-year-old and quickly impressed with his ability to call stocks. He created hedge funds, taught himself biology and, after earning a BA at Baruch College in New York City, began hedge funds investing in biotech.
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  • He became famous within a certain world but entered public consciousness after he raised the price more than 55-fold for Daraprim in September from $13.50 per pill to $750. It is the preferred treatment for a parasitic condition known as toxoplasmosis, which can be deadly for unborn babies and patients with compromised immune systems including those with HIV or cancer. His company, Turing Pharmaceuticals AG, bought the drug, moved it to a closed distribution system and instantly drove the price into the stratosphere. He drew shocked rebukes from Congress, doctors and presidential candidates, and brought public attention to the rising prices of older drugs. Donald Trump called Shkreli a “spoiled brat,” and the BBC dubbed him the “most hated man in America.” Bernie Sanders, the Democratic presidential candidate, rejected a $2,700 campaign donation from him, directing it to an HIV clinic. A spokesman said the campaign would not keep money “from this poster boy for drug company greed.” All the criticism seemed at first to have some impact and Shkreli said he would lower the price. Then he reneged. When Hillary Clinton tried one more time last month to get him to cut the cost, he dismissed her with the tweet “lol.” At a Forbes summit in New York this month, wearing a hooded sweatshirt, he said if he could have done it over, “I probably would have raised the price higher,” adding, “My investors expect me to maximize profits.”
  • Shkreli did further damage to his public image with other acts and boasts. He spent millions on the only copy of a Wu-Tang Clan album that music fans are desperate to hear and then told Bloomberg Businessweek that he had no immediate plans to listen to it. He takes often to Twitter and message boards, bragging about his business strategies, musical tastes and politics; he live-streams from his office for long stretches. The SEC complaint and federal indictment lay out a series of schemes and cover-ups carried out by Shkreli. Capers said authorities began investigating him as early as 2014.
  • Barely 23, he was managing hedge fund Elea Capital in New York and lost it all in 2007. Around then, a trade with Lehman Brothers ended with a $2.3 million judgment against him, prosecutors said. In 2010, he lost his clients’ $3 million investment in his new fund, MSMB Capital. In 2011, he bet that shares of Orexigen Therapeutics Inc. would fall and wound up owing $7 million to his broker, Merrill Lynch, authorities said. He couldn’t pay, and he, an unnamed accomplice and MSMB Capital eventually extinguished the debt with a $1.35 million settlement, they said. Part of that money came from his next firm, authorities said. After the collapse of MSMB Capital, Shkreli launched MSMB Healthcare with about $5 million from 13 investors. He paid himself “far in excess” of the agreed-upon 1 percent management fee and 20 percent profit incentive, according to the SEC.
  • Shkreli then used cash from MSMB Healthcare to invest in Retrophin, the pharmaceutical company he founded in 2011, even though it “had no products or assets,” prosecutors said. Later, he used the assets of Retrophin to repay angry investors in his hedge funds, prosecutors said. Shkreli is confident that he will be cleared of the charges, according to a statement on his behalf. Shkreli is particularly disappointed that his litigation with Retrophin has become a government enforcement matter, according to the statement. He also denied the charges regarding the MSMB entities, which he said involve complex accounting matters that prosecutors and the SEC fail to understand, according to the statement. “It is no coincidence that these charges, the result of investigations which have been languishing for considerable time, have been filed at the same time of Shkreli’s high-profile, controversial and yet unrelated activities,” according to the statement. “The government suggested that Mr. Shkreli was involved in a Ponzi scheme. Ponzi victims do not make money, yet Mr. Shkreli’s investors enjoyed strong results.”
  • As Shkreli’s losses mounted, so did his lies. He fabricated portfolio statements and, with his lawyer’s help, deceived the SEC and outside accountants. He backdated records, manufactured a phony loan agreement between Retrophin and a hedge fund, and created sham consulting agreements with Retrophin as a way to route the company’s cash to his earlier investors. Greebel, the arrested lawyer, made sure Retrophin’s outside accountants were unaware of Shkreli’s financial maneuvers and helped him concoct the consulting agreements used to repay the hedge fund investors, the U.S. said. The cases mirror a lawsuit brought by Retrophin. Shkreli blithely dismissed his old company’s claims, saying, “The $65 million Retrophin wants from me would not dent me. I feel great. I’m licking my chops over the suits I’m going to file against them.” Earlier, he had denied wrongdoing in a post on InvestorsHub after Retrophin disclosed it had received a subpoena from federal prosecutors and the preliminary findings from its own investigation of Shkreli. He called the company’s allegations “completely false, untrue at best and defamatory at worst.”
  • “Every transaction I’ve ever made at Retrophin was done with outside counsel’s blessing,” he said on the investment blog in February, without identifying the lawyers. When Shkreli was working for Cramer’s firm, he was still a teenager. After recommending successful trades, Shkreli eventually set up his own hedge fund, quickly developing a reputation for trashing biotechnology stocks in online chatrooms and shorting them, to enormous profit. Widely admired for his intellect and sharp eye, he set up Retrophin to develop drugs and acquire older pharmaceuticals that could be sold for higher profits. Turing, which is less than a year old and has raised $90 million in financing, has followed a similar strategy with the purchase of drugs, including Daraprim. Shkreli recently bought a majority stake in KaloBios Pharmaceuticals Inc. after Turing received a warning from the New York attorney general that the distribution network for Daraprim may violate antitrust laws. State officials made their concerns known to Turing and Shkreli in an Oct. 12 letter obtained by Bloomberg.
  • KaloBios recently acquired the license for benznidazole, a standard treatment for Chagas, a deadly parasitic infection most common in South and Central America. The firm announced plans to increase the cost from a couple hundred dollars for two months to a pricing structure like that for hepatitis-C drugs, which can run to nearly $100,000 for 12 weeks.
  • With the federal charges and regulatory actions, Shkreli could be banned from running a public company, which could put the future of KaloBios into question. Trading in KaloBios shares was halted after the stock fell 53 percent. It’s less clear what the impact could be on Turing, which is closely held.
  • Federal authorities will have to ask a judge to impose an asset freeze if they want to guarantee Shkreli doesn’t dispose of ill-gotten gains. The charges suggest that a small group of health-care firms—ones that acquire the rights to drugs and significantly increase their prices—is drawing the scrutiny of regulators and prosecutors, with a possible chilling effect on aggressive drug-pricing strategies. Legislators are already paying attention. A hearing of the Senate Special Committee on Aging on Dec. 9 scrutinized such tactics. Before Shkreli started Turing, Retrophin raised the price of Thiola, used to treat a rare condition causing debilitating recurrences of kidney stones, from $1.50 a pill to $30. “Some of these companies seem to act more like hedge funds than traditional pharmaceutical companies,” said Senator Susan Collins, a Maine Republican who ran the recent hearing. George Scangos, CEO of biotechnology giant Biogen Inc., went further, saying in an interview, “Turing is to a research-based company like a loan shark is to a legitimate bank.”
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    Couldn't happen to a nicer guy.
Paul Merrell

Courthouse News Service - 0 views

  • During secret proceedings in Washington, a key witness in undermining the $9.5 billion judgment Chevron faces in Ecuador repudiated much of his explosive testimony, transcripts made public today show.     Since agreeing to testify for the oil giant, Judge Alberto Guerra's fortunes have changed, and so have Chevron's.     Roughly two years ago, Guerra took to the witness stand in a New York federal courtroom and swore that lawyers for rainforest villagers bribed him to ghostwrite a multibillion-dollar Ecuadorean court judgment against Chevron for oil contamination to the Amazon jungle.     About a year before he made a deal with Chevron, Guerra had little more than $100 to his name. He also owed tens of thousands of dollars in debt and could not afford to visit his children living in the United States.     U.S. District Judge Lewis Kaplan had warned early on in proceedings that he did not "assume that anyone's hands in this are clean," yet he credited Guerra's testimony last year in ruling that the Ecuadoreans obtained their award "by corrupt means."     The Ecuadoreans have long attacked Guerra, who has a contract with Chevron for various perks, including at least $326,000, an immigration attorney and a car, as a "paid-for" participant in the oil giant's self-styled witness-protection program.     Kaplan's decision conceded that "Guerra's credibility is not impeccable," but found that his account was "corroborated extensively by independent evidence."
  • Both that credibility and the corroborating evidence came under withering attack this year during closed-door proceedings before an international arbitration tribunal.     Though the hearings took place without press or public access at the World Bank in Washington on April 23 and 24, the tribunal agreed to release transcripts of the proceedings in response to a Courthouse News request that the Reporters Committee for Freedom of the Press supported.     Courthouse News obtained advanced copies of more than 3,000 pages of transcripts, which were formally released on Monday.     They show Guerra putting a new twist on an old saying. "Money talks, gold screams," Guerra said in a June 25, 2012, meeting with Chevron representatives - a meeting Chevron recorded.     Testifying about this comment at the arbitration hearing, Guerra said Chevron showed him a safe filled with money. He recounted Chevron's representatives telling him: "Look, look, look what's down there. We have $20,000 there."     He remembered replying: "Oh, OK, very well, very well."     Guerra said he had only $146 in his bank account a year earlier, and owed tens of thousands more to finish the construction of his house. He said he could not scrape money for airfare to visit his children in the United States.
  •  Minutes from Guerra's meeting with Chevron that came to light during the tribunal proceedings showed that Chevron's lawyers hoped to find evidence that the Ecuadorean government had pressured the Guerra to rule against the company.     Guerra disappointed by saying that Ecuadorean President Rafael Correa's administration "never butted in" to the process, the transcript shows.     "These guys are idiots, but the truth, the truth, I attest, damn, they never got involved," Guerra added, referring to Correa's government.     The remark appears to undercut the foundation of Chevron's arbitration case, which asks the tribunal to blame the Ecuadorean government for a miscarriage of justice.     Guerra stood by those comments on the arbitration panel's witness stand.      "My position is that the government did not intervene," Guerra said.     The only time an Ecuadorean government official tried to elbow into the case, Guerra testified, was under a prior administration. Correa's predecessors pushed to dismiss the case in Chevron's favor in 2003, he said.
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  •  Guerra also acknowledged bluntly on the witness stand that he had lied in telling Chevron's team that attorneys for the Ecuadoreans offered him $300,000.     "Yes, sir, I lied there," Guerra told Eric Bloom, who represents Ecuador for the firm Winston & Strawn. "I wasn't truthful."     Guerra maintains that other attorneys for the Ecuadoreans, specifically Steven Donziger and Pablo Fajardo, offered money in return for ghostwriting the judgment on behalf of Judge Nicolas Zambrano, the final jurist to preside over the case.     Shifting the details of this supposed arrangement, though, Guerra walked back his allegation that Zambrano offered him 20 percent.     "That was my sworn statement in New York, but what I said is that, because of a circumstance, because of a situation, I mentioned 20 percent when it wasn't true, and I think that, as a gentleman, I should say the truth, and we did not discuss - I did not discuss 20 percent with Mr. Zambrano - but we did discuss that he would share with me from what he received," he said.     In his nearly 500-page ruling, Judge Kaplan pointed to bank records, daily planners, shipping records and airplane tickets as corroborating evidence that outweighed Guerra's credibility problems.
  • Particularly persuasive for Kaplan was evidence that Ecuador's national airline, Tame, certified delivery of packages between Guerra and Zambrano.     Guerra told the arbitrators this spring, however, that all 11 of these packages "had nothing to do with the [Chevron] case."     As for his plane tickets to the rainforest from Aug. 11 and 12, 2010, Guerra said they occurred during an irrelevant time period.     "If I traveled during those dates, it wasn't for me to provide assistance to the Chevron case," he said.     Guerra testified that Chevron representatives told him that they would have raised his pay if he could provide them with the key physical evidence they were looking for: a draft of the judgment.     "We were unable to find the main document," Guerra recalled them saying. "Had we been able to find it, we would have been able to offer you a larger amount, something like that, we have $18,000 for you, and we're going to take the computer with us."     Though Guerra did not have a copy of the judgment, Ecuador's forensic expert Christopher Racich testified that he found a running draft of the judgment against Chevron on Zambrano's hard drives.
  • Ecuador now argues that this forensic evidence - which Courthouse News reported exclusively early this year - proves Zambrano painstakingly wrote the ruling and saved it hundreds of times throughout the case.     Chevron has not been able to produce emails between Guerra, Zambrano and the purported ghostwriters, Donziger and Fajardo, Ecuador's forensic expert says.     Guerra acknowledged to the arbitrators that that the bounty of physical evidence he promised Chevron fell short.     There are no calendars and day planners marked with meetings scheduled between Fajardo, Donziger or Guerra, he acknowledged.     While Guerra said he had payments from Zambrano from April 2011 and February 2012, he testified that these "had no connection to the Chevron case."     For Chevron, the thousands of pages of transcripts show that the company "proved its case before the International Arbitration Tribunal."     "Witness and expert testimony confirmed that the Ecuadorean judgment against Chevron was ghostwritten by Steven Donziger and his team and that the Ecuadorian government is responsible for any further remediation," Chevron spokesman Morgan Crinklaw said in a statement. "Chevron also proved that Ecuador breached the U.S.-Ecuador Bilateral Investment Treaty and international law."     Donziger, who still works for the Ecuadorean villagers seeking to collect from Chevron, said in a statement that Guerra's latest testimony "demonstrates once and for all that Chevron's so-called racketeering case has completely fallen apart."
  •   "Guerra has been the linchpin of Chevron's entire body of trumped up evidence and he now stands not only as an admitted liar, but also as a shocking symbol of how Chevron's management has become so obsessed with evading its legal obligations in Ecuador that it is willing to risk presenting false evidence in court to try to frame adversary counsel and undermine the rule of law," Donziger added.
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    Chevron has a "witness-protection program" as an excuse for paying off witnesses? And for paying them to lie under oath, it appears. Never in my legal career did I ever here of a non-governmental entity with a witness protection program. This reeks to high heavens.  Hats off to Courthouse News for digging deep on this one.   
Paul Merrell

Hillary Clinton Has The Most Bogus Twitter Followers - 0 views

  • When it comes to fake Twitter followers, Hillary Clinton is winning the presidential race by a landslide. Clinton has more fake followers and a higher ratio of bogus Twitter fans than any of the other main 2016 presidential contenders, a Vocativ analysis shows. On the other end of the scale, the candidates with the lowest percentage of fake Twitter followers are Donald Trump and Bernie Sanders. Contrary to what one might guess from his reputation for extravagant self-promotion, Trump’s 2.6 million Twitter followers are 90 percent real people. Only 311,388 were deemed fake by the analysis using the tool TwitterAudit. Bernie Sanders was tied for the highest ratio of authentic followers—90 percent of his 300,000-plus followers are real people. Then comes Gov. Jeb Bush with 89% of his followers registering as real. On the bottom of the Twitter list is Clinton, with a whopping 35 percent of her 2.3 million Twitter followers coming up as fake.
  • TwitterAudit, a social media analysis tool, says on its website that it judges a Twitter account’s authenticity based on its number of tweets, the date of its last tweet and the ratio of its followers to friends. The fake Twitter accounts can be bots, which are accounts run by automated software programming. They can also be accounts created by real people but with an agenda of spreading political advertisements. But under both scenarios, they are certainly not a genuine measure of candidate popularity.
Paul Merrell

Russia Deploys Fleet Off Syria - Says U.S. Preparing for Possible Attack - 0 views

  • The Russian Ministry of Defence said on Monday it had noticed Washington was building up its military forces in the Middle East in preparation for what Moscow feared was a possible strike on Syrian government forces, Russian news agencies reported. Major-General Igor Konashenkov was quoted by agencies as saying that the USS Ross, a guided-missile destroyer, had entered the Mediterranean on Aug. 25 armed with 28 Tomahawk cruise missiles capable of hitting any target in Syria.
  • Up to 13 Russian warships have crossed the Bosphorus toward Syria so far this week as tensions between the U.S. and Syria continue to rise, according to ship spotters based in the Bosphorus Strait. Now in Med Sea: CG Marshal Ustinov DDG Severomorsk DDG Yaroslav Mudryy FFG Admiral Grigorovich FFG Admiral Essen FFL Pytlivyy FSG Vyshniy Volochek FSG Grad Sviyazhsk FSG Velikiy Ustyug LST Orsk LST Nikolay Fil'chenkov MS Turbinist MS Valentin Pikul SS Kolpino SS Velikiy Novgorod — Capt(N) (@Capt_Navy) August 25, 2018 Russia ramping up its presence in the eastern Med for the conclusion of #Syria campaign: Rejoining Russian Navy’s Mediterranean deployment after 85 days, #ВМФ Project1135M #ЧФ BSF Krivak II frigate Pytlivy 868 transited Bosphorus towards Med en route to #Tartus. pic.twitter.com/56XWIWstKK — Yörük Işık (@YorukIsik) August 24, 2018 The deployment of the Russian fleet comes as the U.S. President Donald Trump threatened to strike the Syrian Army ahead of the long-awaited battle of Idlib. Syria, Turkey, Russia and U.S. are about to square off in the northern Syria city with millions of civilians in the crosshairs.
Paul Merrell

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

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

Germany - ECCHR - EUROPEAN CENTER FOR CONSTITUTIONAL AND HUMAN RIGHTS (en) - 0 views

  • ECCHR’s legal intervention filed with the German Federal Public Prosecutor (Generalbundesanwalt – GBA) is aimed at securing an arrest warrant for CIA Deputy Director Gina Haspel. Haspel was appointed to the post by President Donald Trump in February 2017. The information submitted to the GBA by ECCHR on 6 June 2017 documents Haspel’s role in the torture of detainees in 2002 at a secret CIA prison in Thailand. In the dossier, ECCHR argues that Haspel oversaw the daily torture of detainees at the black site in 2002 and failed to do anything to stop it.  “Those who commit, order or allow torture should be brought before a court – this is especially true for senior officials from powerful nations,” said ECCHR’s General Secretary Wolfgang Kaleck. “The prosecutor must, under the principle of universal jurisdiction, open investigations, secure evidence and seek an arrest warrant. If the deputy director travels to Germany or Europe, she must be arrested.”
Paul Merrell

Why Did the Saudi Regime and Other Gulf Tyrannies Donate Millions to the Clinton Founda... - 0 views

  • As the numerous and obvious ethical conflicts surrounding the Clinton Foundation receive more media scrutiny, the tactic of Clinton-loyal journalists is to highlight the charitable work done by the foundation, and then insinuate — or even outright state — that anyone raising these questions is opposed to its charity. James Carville announced that those who criticize the foundation are “going to hell.” Other Clinton loyalists insinuated that Clinton Foundation critics are indifferent to the lives of HIV-positive babies or are anti-gay bigots. That the Clinton Foundation has done some good work is beyond dispute. But that fact has exactly nothing to do with the profound ethical problems and corruption threats raised by the way its funds have been raised. Hillary Clinton was America’s chief diplomat, and tyrannical regimes such as the Saudis and Qataris jointly donated tens of millions of dollars to an organization run by her family and operated in its name, one whose works has been a prominent feature of her public persona. That extremely valuable opportunity to curry favor with the Clintons, and to secure access to them, continues as she runs for president.
  • The claim that this is all just about trying to help people in need should not even pass a laugh test, let alone rational scrutiny. To see how true that is, just look at who some of the biggest donors are. Although it did not give while she was secretary of state, the Saudi regime by itself has donated between $10 million and $25 million to the Clinton Foundation, with donations coming as late as 2014, as she prepared her presidential run. A group called “Friends of Saudi Arabia,” co-founded “by a Saudi Prince,” gave an additional amount between $1 million and $5 million. The Clinton Foundation says that between $1 million and $5 million was also donated by “the State of Qatar,” the United Arab Emirates, and the government of Brunei. “The State of Kuwait” has donated between $5 million and $10 million. Theoretically, one could say that these regimes — among the most repressive and regressive in the world — are donating because they deeply believe in the charitable work of the Clinton Foundation and want to help those in need. Is there a single person on the planet who actually believes this? Is Clinton loyalty really so strong that people are going to argue with a straight face that the reason the Saudi, Qatari, Kuwaiti and Emirates regimes donated large amounts of money to the Clinton Foundation is because those regimes simply want to help the foundation achieve its magnanimous goals?
  • All those who wish to argue that the Saudis donated millions of dollars to the Clinton Foundation out of a magnanimous desire to aid its charitable causes, please raise your hand. Or take the newfound casting of the Clinton Foundation as a champion of LGBTs, and the smearing of its critics as indifferent to AIDS. Are the Saudis also on board with these benevolent missions? And the Qataris and Kuwaitis?
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  • Which is actually more homophobic: questioning the Clinton Foundation’s lucrative relationship to those intensely anti-gay regimes, or cheering and defending that relationship? All the evidence points to the latter. But whatever else is true, it is a blatant insult to everyone’s intelligence to claim that the motive of these regimes in transferring millions to the Clinton Foundation is a selfless desire to help them in their noble work. Another primary project of the Clinton Foundation is the elimination of wealth inequality, which “leads to significant economic disparities, both within and among countries, and prevents underserved populations from realizing their potential.” Who could possibly maintain that the reason the Qatari and Emirates regimes donated millions to the Clinton Foundation was their desire to eliminate such economic oppression?
  • It doesn’t exactly take a jaded disposition to doubt that these donations from some of the world’s most repressive regimes are motivated by a desire to aid the Clinton Foundation’s charitable work. To the contrary, it just requires basic rationality. That’s particularly true given that these regimes “have donated vastly more money to the Clinton Foundation than they have to most other large private charities involved in the kinds of global work championed by the Clinton family.” For some mystifying reason, they seem particularly motivated to transfer millions to the Clinton Foundation but not the other charities around the world doing similar work. Why might that be? What could ever explain it? Some Clinton partisans, unwilling to claim that Gulf tyrants have charity in their hearts when they make these donations to the Clinton Foundation, have settled on a different tactic: grudgingly acknowledging that the motive of these donations is to obtain access and favors, but insisting that no quid pro quo can be proven. In other words, these regimes were tricked: They thought they would get all sorts of favors through these millions in donations, but Hillary Clinton was simply too honest and upstanding of a public servant to fulfill their expectations. The reality is that there is ample evidence uncovered by journalists suggesting that regimes donating money to the Clinton Foundation received special access to and even highly favorable treatment from the Clinton State Department. But it’s also true that nobody can dispositively prove the quid pro quo. Put another way, one cannot prove what was going on inside Hillary Clinton’s head at the time that she gave access to or otherwise acted in the interests of these donor regimes: Was she doing it as a favor in return for those donations, or simply because she has a proven affinity for Gulf State and Arab dictators, or because she was merely continuing decades of U.S. policy of propping up pro-U.S. tyrants in the region?
  • While this “no quid pro quo proof” may be true as far as it goes, it’s extremely ironic that Democrats have embraced it as a defense of Hillary Clinton. After all, this has long been the primary argument of Republicans who oppose campaign finance reform, and indeed, it was the primary argument of the Citizens United majority, once depicted by Democrats as the root of all evil. But now, Democrats have to line up behind a politician who, along with her husband, specializes in uniting political power with vast private wealth, in constantly exploiting the latter to gain the former, and vice versa. So Democrats are forced to jettison all the good-government principles they previously claimed to believe and instead are now advocating the crux of the right-wing case against campaign finance reform: that large donations from vested factions are not inherently corrupting of politics or politicians. Indeed, as I documented in April, Clinton-defending Democrats have now become the most vocal champions of the primary argument used by the Citizens United majority. “We now conclude,” wrote Justice Anthony Kennedy for the Citizens United majority, “that independent expenditures, including those made by corporations, do not give rise to corruption or the appearance of corruption.” That is now exactly the argument Clinton loyalists are spouting to defend the millions in donations from tyrannical regimes (as well as Wall Street banks and hedge funds): Oh, there’s no proof there’s any corruption going on with all of this money. The elusive nature of quid pro quo proof — now the primary Democratic defense of Clinton — has also long been the principal argument wielded by the most effective enemy of campaign finance reform, GOP Sen. Mitch McConnell. This is how USA Today, in 1999, described the arguments of McConnell and his GOP allies when objecting to accusations from campaign finance reform advocates that large financial donations are corrupting:
  • So if you want to defend the millions of dollars that went from tyrannical regimes to the Clinton Foundation as some sort of wily, pragmatic means of doing good work, go right ahead. But stop insulting everyone’s intelligence by pretending that these donations were motivated by noble ends. Beyond that, don’t dare exploit LGBT rights, AIDS, and other causes to smear those who question the propriety of receiving millions of dollars from the world’s most repressive, misogynistic, gay-hating regimes. Most important, accept that your argument in defense of all these tawdry relationships — that big-money donations do not necessarily corrupt the political process or the politicians who are their beneficiaries — has been and continues to be the primary argument used to sabotage campaign finance reform. Given who their candidate is, Democrats really have no choice but to insist that these sorts of financial relationships are entirely proper (needless to say, Goldman Sachs has also donated millions to the Clinton Foundation, but Democrats proved long ago they don’t mind any of that when they even insisted that it was perfectly fine that Goldman Sachs enriched both Clintons personally with numerous huge speaking fees — though Democrats have no trouble understanding why Trump’s large debts to Chinese banks and Goldman Sachs pose obvious problems). But — just as is true of their resurrecting a Cold War template and its smear tactics against their critics — the benefits derived from this tactic should not obscure how toxic it is and how enduring its consequences will likely be.
Paul Merrell

A New Poll Shows the Public Is Overwhelmingly Opposed to Endless US Military Interventi... - 0 views

  • The headline findings show, among other things, that 86.4 percent of those surveyed feel the American military should be used only as a last resort, while 57 percent feel that US military aid to foreign countries is counterproductive. The latter sentiment “increases significantly” when involving countries like Saudi Arabia, with 63.9 percent saying military aid—including money and weapons—should not be provided to such countries. The poll shows strong, indeed overwhelming, support, for Congress to reassert itself in the oversight of US military interventions, with 70.8 percent of those polled saying Congress should pass legislation that would restrain military action overseas in three specific ways: by requiring “clearly defined goals to authorize military engagement” (78.8 percent); by requiring Congress “to have both oversight and accountability regarding where troops are stationed” (77 percent); by requiring that “any donation of funds or equipment to a foreign country be matched by a pledge of that country to adhere to the rules of the Geneva Convention” (84.8 percent). The results of the J. Wallin Opinion Research survey would seem to track with the results of another study undertaken last year by Francis Shen, a law professor at the University of Minnesota Law School, and Dougas Kriner, a political science professor at Boston University, who found that Hillary Clinton’s loss in the 2016 presidential race might well have been owing to her hawkish foreign-policy positions.
  • The study, “Battlefield Casualties and Ballot Box Defeat: Did the Bush-Obama Wars Cost Clinton the White House?,” which was released last summer, found that “a divide is emerging between communities whose young people are dying to defend the country, and those communities whose young people are not.” That divide, which the authors termed “the casualty gap,” may have contributed to Donald Trump’s surprise victory. Indeed, “even controlling in a statistical model for many other alternative explanations,” the authors found there was “a significant and meaningful relationship between a community’s rate of military sacrifice and its support for Trump.”
  • The survey found that 78 percent of Democrats, 64.5 percent of Republicans, and 68.8 percent of independents supported restraining military action overseas. “Rarely,” noted the report, “does opinion research reveal issues that enjoy shared sentiments on a bi-partisan level.” The poll brings home just how divorced the Beltway—and its think tanks, media outlets, and political class—is from the expressed desire of a large majority of Americans for a responsible and reasonable foreign policy, a policy that, arguably, has been absent since the end of the Cold War. Candidates from both parties running in this year’s midterm election ignore the results of the new survey at their peril.
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    Nothing that the pro-war folks can't overcome with a propaganda incident.
Paul Merrell

As Wall Street Sinks Global Markets, China's Economic Policies Build Independence & Imm... - 0 views

  • The recent economic “correction” in the U.S. markets, which saw stocks drop back down from recent record-highs, has begun to spread to the east, reaching the stock exchanges in Tokyo, Taiwan and Shanghai. While all three of these markets depend, to some extent, on the performance of Wall Street, one is likely to emerge stronger as the U.S. market corrects itself. Many Western economic analysts — such as those at the pillar of U.S. financial journalism, Bloomberg — have continued to predict future financial downturns would be caused by Chinese debt, or the country’s massive “shadow” economy (or, more specifically, low level loans that aren’t tightly regulated by the central government). This latest downturn, however, shows once again that Wall Street is still the primary factor in sinking global markets. China has been faced with — and continued to grow throughout — a previous U.S.-triggered global recession just under a decade ago. While the current condition of the markets is nothing like the end of 2008, there is still the same fear in the West that China is somehow on the brink of catastrophe. Yet China pulled through the Great Recession, despite a huge decrease in demand for Chinese export goods. Beijing presided over GDP growth only falling below 8 percent in the last quarter of 2008 and first of 2009 and made a faster recovery than any Western nation.
  • China is obviously in a position much different now from that of 2008. Now — as a clear competitor with the U.S. in key economic sectors such as cutting-edge technology, and playing a unifying role for a large portion of the global population — Beijing is making even more major domestic economic reforms and preparing to project its new prosperity outward. In order to better understand how China is likely not just to survive any fluctuations in the U.S. market but also to thrive, it is best to understand both how China managed to recover from the last recession faster than any other country and the new economic policies of President Xi Jinping, which will harness the power of the world’s largest planned economy in its march into the future.
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