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Paul Merrell

The American Deep State, Deep Events, and Off-the-Books Financing | Global Research - 0 views

  • It is alleged that some of the bail money that released Sturgis and the other Watergate burglars was drug money from the CIA asset turned drug trafficker, Manuel Artime, and delivered by Artime’s money-launderer, Ramón Milián Rodríguez. After the Iran-Contra scandal went public, Milián Rodríguez was investigated by a congressional committee – not for Watergate, but because, in support of the Contras, he had managed two Costa Rican seafood companies, Frigorificos and Ocean Hunter, that laundered drug money.6
  • In the 1950s Wall Street was a dominating complex. It included not just banks and other financial institutions but also the oil majors whose cartel arrangements were successfully defended against the U.S. Government by the Wall Street law firm Sullivan and Cromwell, home to the Dulles brothers. The inclusion of Wall Street conforms with Franklin Roosevelt’s observation in 1933 to his friend Col. E.M. House that “The real truth … is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.”18 FDR’s insight is well illustrated by the efficiency with which a group of Wall Street bankers (including Nelson Rockefeller’s grandfather Nelson Aldrich) were able in a highly secret meeting in 1910 to establish the Federal Reserve System – a system which in effect reserved oversight of the nation’s currency supply and of all America’s banks in the not impartial hands of its largest.19 The political clout of the quasi-governmental Federal Reserve Board was clearly demonstrated in 2008, when Fed leadership secured instant support from two successive administrations for public money to rescue the reckless management of Wall Street banks: banks Too Big To Fail, and of course far Too Big To Jail, but not Too Big To Bail.20
  • since its outset, the CIA has always had access to large amounts of off-the books or offshore funds to support its activities. Indeed, the power of the purse has usually worked in an opposite sense, since those in control of deep state offshore funds supporting CIA activities have for decades also funded members of Congress and of the executive – not vice versa. The last six decades provide a coherent and continuous picture of historical direction being provided by this deep state power of the purse, trumping and sometimes reversing the conventional state. Let us resume some of the CIA’s sources of offshore and off-the-books funding for its activities. The CIA’s first covert operation was the use of “over $10 million in captured Axis funds to influence the [Italian] election [of 1948].”25 (The fundraising had begun at the wealthy Brook Club in New York; but Allen Dulles, then still a Wall Street lawyer, persuaded Washington, which at first had preferred a private funding campaign, to authorize the operation through the National Security Council and the CIA.)26 Dulles, together with George Kennan and James Forrestal, then found a way to provide a legal source for off-the-books CIA funding, under the cover of the Marshall Plan. The three men “helped devise a secret codicil [to the Marshall Plan] that gave the CIA the capability to conduct political warfare. It let the agency skim millions of dollars from the plan.”27
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  • The international lawyers of Wall Street did not hide from each other their shared belief that they understood better than Washington the requirements for running the world. As John Foster Dulles wrote in the 1930s to a British colleague, The word “cartel” has here assumed the stigma of a bogeyman which the politicians are constantly attacking. The fact of the matter is that most of these politicians are highly insular and nationalistic and because the political organization of the world has under such influence been so backward, business people who have had to cope realistically with international problems have had to find ways for getting through and around stupid political barriers.21
  • In the 1960s and especially the 1970s America began to import more and more oil from the Middle East. But the negative effect on the U.S. balance of payments was offset by increasing arms and aviation sales to Iran and Saudi Arabia. Contracts with companies like Northrop and especially Lockheed (the builder of the CIA’s U-2) included kickbacks to arms brokers, like Kodama Yoshio in Japan and Adnan Khashoggi in Saudi Arabia, who were also important CIA agents. Lockheed alone later admitted to the Church Committee that it had provided $106 million in commissions to Khashoggi between 1970 and 1975, more than ten times what it had paid to the next most important connection, Kodama.31 These funds were then used by Khashoggi and Kodama to purchase pro-Western influence. But Khashoggi, advised by a team of ex-CIA Americans like Miles Copeland and Edward Moss, distributed cash, and sometimes provided women, not just in Saudi Arabia but around the world – including cash to congressmen and President Nixon in the United States.32 Khashoggi in effect served as a “cutout,” or representative, in a number of operations forbidden to the CIA and the companies he worked with. Lockheed, for one, was conspicuously absent from the list of military contractors who contributed illicitly to Nixon’s 1972 election campaign. But there was no law prohibiting, and nothing else to prevent their official representative, Khashoggi, from cycling $200 million through the bank of Nixon’s friend Bebe Rebozo.33
  • The most dramatic use of off-the-books drug profits to finance foreign armies was seen in the 1960s CIA-led campaign in Laos. There the CIA supplied airstrips and planes to support a 30,000-man drug-financed Hmong army. At one point Laotian CIA station chief Theodore Shackley even called in CIA aircraft in support of a ground battle to seize a huge opium caravan on behalf of the larger Royal Laotian Army.30
  • At the time of the Marshall Plan slush fund in Europe, the CIA also took steps which resulted in drug money to support anti-communist armies in the Far East. In my book American War Machine I tell how the CIA, using former OSS operative Paul Helliwell, created two proprietary firms as infrastructure for a KMT army in Burma, an army which quickly became involved in managing and developing the opium traffic there. The two firms were SEA Supply Inc. in Bangkok and CAT Inc. (later Air America) in Taiwan. Significantly, the CIA split ownership of CAT Inc.’s plane with KMT bankers in Taiwan – this allowed the CIA to deny responsibility for the flights when CAT planes, having delivered arms from Sea Supply to the opium-growing army, then returned to Taiwan with opium for the KMT. Even after the CIA officially severed its connection to the KMT Army in 1953, its proprietary firm Sea Supply Inc. supplied arms for a CIA-led paramilitary force, PARU, that also was financed, at least in part, by the drug traffic.28 Profits from Thailand filtered back, in part through the same Paul Helliwell, as donations to members from both parties in Congress. Thai dictator Phao Sriyanon, a drug trafficker who was then alleged to be the richest man in the world, hired lawyer Paul Helliwell…as a lobbyist in addition to [former OSS chief William] Donovan [who in 1953-55 was US Ambassador to Thailand]. Donovan and Helliwell divided the Congress between them, with Donovan assuming responsibility for the Republicans and Helliwell taking the Democrats.29
  • The power exerted by Khashoggi was not limited to his access to funds and women. By the 1970s, Khashoggi and his aide Edward Moss owned the elite Safari Club in Kenya.34 The exclusive club became the first venue for another and more important Safari Club: an alliance between Saudi and other intelligence agencies that wished to compensate for the CIA’s retrenchment in the wake of President Carter’s election and Senator Church’s post-Watergate reforms.35
  • As former Saudi intelligence chief Prince Turki bin Faisal once told Georgetown University alumni, In 1976, after the Watergate matters took place here, your intelligence community was literally tied up by Congress. It could not do anything. It could not send spies, it could not write reports, and it could not pay money. In order to compensate for that, a group of countries got together in the hope of fighting Communism and established what was called the Safari Club. The Safari Club included France, Egypt, Saudi Arabia, Morocco, and Iran.36 Prince Turki’s candid remarks– “your intelligence community was literally tied up by Congress. …. In order to compensate for that, a group of countries got together … and established what was called the Safari Club.” – made it clear that the Safari Club, operating at the level of the deep state, was expressly created to overcome restraints established by political decisions of the public state in Washington (decisions not only of Congress but also of President Carter).
  • Specifically Khashoggi’s activities involving corruption by sex and money, after they too were somewhat curtailed by Senator Church’s post-Watergate reforms, appear to have been taken up quickly by the Bank of Credit and Commerce International (BCCI), a Muslim-owned bank where Khashoggi’s friend and business partner Kamal Adham, the Saudi intelligence chief and a principal Safari Club member, was a part-owner.37 In the 1980s BCCI, and its allied shipping empire owned by the Pakistani Gokal brothers, supplied financing and infrastructure for the CIA’s (and Saudi Arabia’s) biggest covert operation of the decade, support for the Afghan mujahedin. To quote from a British book excerpted in the Senate BCCI Report: “BCCI’s role in assisting the U.S. to fund the Mujaheddin guerrillas fighting the Soviet occupation is drawing increasing attention. The bank’s role began to surface in the mid-1980′s when stories appeared in the New York Times showing how American security operatives used Oman as a staging post for Arab funds. This was confirmed in the Wall Street Journal of 23 October 1991 which quotes a member of the late General Zia’s cabinet as saying ‘It was Arab money that was pouring through BCCI.’ The Bank which carried the money on from Oman to Pakistan and into Afghanistan was National Bank of Oman, where BCCI owned 29%.”38
  • In 1981 Vice-president Bush and Saudi Prince Bandar, working together, won congressional approval for massive new arms sales of AWACS (airborne warning and control system) aircraft to Saudi Arabia. In the $5.5 billion package, only ten percent covered the cost of the planes. Most of the rest was an initial installment on what was ultimately a $200 billion program for military infrastructure through Saudi Arabia.41 It also supplied a slush fund for secret ops, one administered for over a decade in Washington by Prince Bandar, after he became the Saudi Ambassador (and a close friend of the Bush family, nicknamed “Bandar Bush”). In the words of researcher Scott Armstrong, the fund was “the ultimate government-off-the-books.” Not long after the AWACS sale was approved, Prince Bandar thanked the Reagan administration for the vote by honoring a request by William Casey that he deposit $10 million in a Vatican bank to be used in a campaign against the Italian Communist Party. Implicit in the AWACS deal was a pledge by the Saudis to fund anticommunist guerrilla groups in Afghanistan, Angola, and elsewhere that were supported by the Reagan Administration.42 The Vatican contribution, “for the CIA’s long-time clients, the Christian Democratic Party,” of course continued a CIA tradition dating back to 1948.
  • The activities of the Safari Club were exposed after Iranians in 1979 seized the records of the US Embassy in Tehran. But BCCI support for covert CIA operations, including Iran-Contra, continued until BCCI’s criminality was exposed at the end of the decade. Meanwhile, with the election of Ronald Reagan in 1980, Washington resumed off-budget funding for CIA covert operations under cover of arms contracts to Saudi Arabia. But this was no longer achieved through kickbacks to CIA assets like Khashoggi, after Congress in 1977 made it illegal for American corporations to make payments to foreign officials. Instead arrangements were made for payments to be returned, through either informal agreements or secret codicils in the contracts, by the Saudi Arabian government itself. Two successive arms deals, the AWACS deal of 1981 and the al-Yamamah deal of 1985, considerably escalated the amount of available slush funds.
  • It is reported in two books that the BCCI money flow through the Bank of Oman was handled in part by the international financier Bruce Rappaport, who for a decade, like Khashoggi, kept a former CIA officer on his staff.39 Rappaport’s partner in his Inter Maritime Bank, which interlocked with BCCI, was E.P. Barry, who earlier had been a partner in the Florida money-laundering banks of Paul Helliwell.40
  • After a second proposed major U.S. arms sale met enhanced opposition in Congress in 1985 from the Israeli lobby, Saudi Arabia negotiated instead a multi-billion pound long-term contract with the United Kingdom – the so-called al-Yamamah deal. Once again overpayments for the purchased weapons were siphoned off into a huge slush fund for political payoffs, including “hundreds of millions of pounds to the ex-Saudi ambassador to the US, Prince Bandar bin Sultan.”43 According to Robert Lacey, the payments to Prince Bandar were said to total one billion pounds over more than a decade.44 The money went through a Saudi Embassy account in the Riggs Bank, Washington; according to Trento, the Embassy’s use of the Riggs Bank dated back to the mid-1970s, when, in his words, “the Saudi royal family had taken over intelligence financing for the United States.”45 More accurately, the financing was not for the United States, but for the American deep state.
  • This leads me to the most original and important thing I have to say. I believe that these secret funds from BCCI and Saudi arms deals – first Khashoggi’s from Lockheed and then Prince Bandar’s from the AWACS and al-Yamamah deals – are the common denominator in all of the major structural deep events (SDEs) that have afflicted America since the supranational Safari Club was created in l976. I am referring specifically to 1) the covert US intervention in Afghanistan (which started about 1978 as a Safari Club intervention, more than a year before the Russian invasion), 2) the 1980 October Surprise, which together with an increase in Saudi oil prices helped assure Reagan’s election and thus give us the Reagan Revolution, 3) Iran-Contra in 1984-86, 4) and – last but by no means least – 9/11. That is why I believe it is important to analyze these events at the level of the supranational deep state. Let me just cite a few details.
  • 1) the 1980 October Surprise. According to Robert Parry, Alexandre de Marenches, the principal founder of the Safari Club, arranged for William Casey (a fellow Knight of Malta) to meet with Iranian and Israeli representatives in Paris in July and October 1980, where Casey promised delivery to Iran of needed U.S. armaments, in exchange for a delay in the return of the U.S. hostages in Iran until Reagan was in power. Parry suspects a role of BCCI in both the funding of payoffs for the secret deal and the subsequent flow of Israeli armaments to Iran.46 In addition, John Cooley considers de Marenches to be “the Safari Club player who probably did most to draw the US into the Afghan adventure.”47 2) the Iran-Contra scandal (including the funding of the Contras, the illegal Iran arms sales, and support for the Afghan mujahideen There were two stages to Iran-Contra. For twelve months in 1984-85, after meeting with Casey, King Fahd of Saudi Arabia, in the spirit of the AWACS deal, supported the Nicaraguan Contras via Prince Bandar through a BCCI bank account in Miami. But in April 1985, after the second proposed arms sale fell through, McFarlane, fearing AIPAC opposition, terminated this direct Saudi role. Then Khashoggi, with the help of Miles Copeland, devised a new scheme in which Iranian arms sales involving Israel would fund the contras. The first stage of Iran-Contra was handled by Prince Bandar through a BCCI account in Miami; the second channel was handled by Khashoggi through a different BCCI account in Montecarlo. The Kerry-Brown Senate Report on BCCI also transmitted allegations from a Palestinian-American businessman, Sam Bamieh, that Khashoggi’s funds from BCCI for arms sales to Iran came ultimately from King Fahd of Saudi Arabia, who “was hoping to gain favor with Ayatollah Ruhollah Khomeini.”48
  • 3) 9/11 When the two previously noted alleged hijackers or designated culprits, al-Mihdhar and al-Hazmi, arrived in San Diego, a Saudi named Omar al-Bayoumi both housed them and opened bank accounts for them. Soon afterwards Bayoumi’s wife began receiving monthly payments from a Riggs bank account held by Prince Bandar’s wife, Princess Haifa bint Faisal.49 In addition, Princess Haifa sent regular monthly payments of between $2,000 and $3,500 to the wife of Osama Basnan, believed by various investigators to be a spy for the Saudi government. In all, “between 1998 and 2002, up to US $73,000 in cashier cheques was funneled by Bandar’s wife Haifa … – to two Californian families known to have bankrolled al-Midhar and al-Hazmi.”50 Although these sums in themselves are not large, they may have been part of a more general pattern. Author Paul Sperry claims there was possible Saudi government contact with at least four other of the alleged hijackers in Virginia and Florida. For example, “9/11 ringleader Mohamed Atta and other hijackers visited s home owned by Esam Ghazzawi, a Saudi adviser to the nephew of King Fahd.”51
  • But it is wrong to think of Bandar’s accounts in the Riggs Bank as uniquely Saudi. Recall that Prince Bandar’s payments were said to have included “a suitcase containing more than $10 million” that went to a Vatican priest for the CIA’s long-time clients, the Christian Democratic Party.52 In 2004, the Wall Street Journal reported that the Riggs Bank, which was by then under investigation by the Justice Department for money laundering, “has had a longstanding relationship with the Central Intelligence Agency, according to people familiar with Riggs operations and U.S. government officials.”53 Meanwhile President Obiang of Equatorial Guinea “siphoned millions from his country’s treasury with the help of Riggs Bank in Washington, D.C.”54 For this a Riggs account executive, Simon Kareri, was indicted. But Obiang enjoyed State Department approval for a contract with the private U.S. military firm M.P.R.I., with an eye to defending offshore oil platforms owned by ExxonMobil, Marathon, and Hess.55 Behind the CIA relationship with the Riggs Bank was the role played by the bank’s overseas clients in protecting U.S. investments, and particularly (in the case of Saudi Arabia and Equatorial Guinea), the nation’s biggest oil companies.
  • The issue of Saudi Embassy funding of at least two (and possibly more) of the alleged 9/11 hijackers (or designated culprits) is so sensitive that, in the 800-page Joint Congressional Inquiry Report on 9/11, the entire 28-page section dealing with Saudi financing was very heavily redacted.56 A similar censorship occurred with the 9/11 Commission Report: According to Philip Shenon, several staff members felt strongly that they had demonstrated a close Saudi government connection to the hijackers, but a senior staff member purged almost all of the most serious allegations against the Saudi government, and moved the explosive supporting evidence to the report’s footnotes.57 It is probable that this cover-up was not designed for the protection of the Saudi government itself, so much as of the supranational deep state connection described in this essay, a milieu where American, Saudi, and Israeli elements all interact covertly. One sign of this is that Prince Bandar himself, sensitive to the anti-Saudi sentiment that 9/11 caused, has been among those calling for the U.S. government to make the redacted 28 pages public.58
  • This limited exposure of the nefarious use of funds generated from Saudi arms contracts has not created a desire in Washington to limit these contracts. On the contrary, in 2010, the second year of the Obama administration, The Defense Department … notified Congress that it wants to sell $60 billion worth of advanced aircraft and weapons to Saudi Arabia. The proposed sale, which includes helicopters, fighter jets, radar equipment and satellite-guided bombs, would be the largest arms deal to another country in U.S. history if the sale goes through and all purchases are made.59 The sale did go through; only a few congressmen objected.60 The deep state, it would appear, is alive and well, and impervious to exposures of it. It is clear that for some decades the bottom-upwards processes of democracy have been increasingly supplanted by the top-downwards processes of the deep state.
  • But the deeper strain in history, I would like to believe, is in the opposite direction: the ultimate diminution of violent top-down forces by the bottom-up forces of an increasingly integrated civil society.61 In the last months we have had Wikileaks, then Edward Snowden, and now the fight between the CIA and its long-time champion in Congress, Dianne Feinstein. It may be time to see a systemic correction, much as we did after Daniel Ellsberg’s release of the Pentagon Papers, which was followed by Watergate and the Church Committee reforms. I believe that to achieve this correction there must be a better understanding of deep events and of the deep state. Ultimately, however, whether we see a correction or not will depend, at least in part, on how much people care.
Paul Merrell

Goldman Sachs Sued for Selling Libya Billions in "Worthless" Options | Global Research - 0 views

  • Goldman Sachs, the Wall Street investment bank, is being sued in London for selling Libya “worthless” derivatives trades in 2008 that the country’s financial managers did not understand. Libya says it lost approximately $1.2 billion on the deals, while Goldman made $350 million.
  • “We think the claims are without merit, and will defend them,” Fiona Laffan, a Goldman Sachs spokeswoman in London, told Bloomberg news service. However, the bank recently claimed that it had retrained its staff to ensure that customers are no longer blind sided by sales pitches for complex products. “For all of our employees, the experience of initiating, approving and executing a transaction for a client at Goldman Sachs is now fundamentally different,” Goldman claimed at its annual meeting last year. Goldman Sachs is not the first Wall Street bank to be accused of taking advantage of naive foreign investors. Morgan Stanley was sued for selling bundled sub-prime mortgages to China Development Industrial Bank (CDIB) from Taiwan that they knew would fail. Even Standard & Poors (S&P), Wall Street’s top ratings agency, has been accused of helping banks to sell “collateralized debt obligations” that they knew were likely to go sour.
  • But this is not the first time that Goldman Sachs has been happy to help governments carry out dodgy deals. Back in 2001, Goldman reportedly charged Greece $300 million to engage on “‘blatant balance sheet cosmetics” to help the country join the European Monetary Union.
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  • Members of the union were required to have government debt under 60 percent of gross domestic product and a budget deficit to gross domestic product ratio of under 3 percent. Unfortunately, Greece debt exceeded 100 percent and deficits were at 3.7 percent Goldman Sachs took advantage of a loophole that allowed countries to enter the EMU if they could demonstrate that they were lowering their debt and their budget deficit. To do this, Goldman Sachs sold Greece a “cross-currency swap” that gave the government cash up front in return for a big payment at the end of the loan period. The beauty of the arrangement was that since such currency swaps were permitted by the European Statistical Agency (Eurostat), the debt and deficit appeared to shrink. 
Paul Merrell

The Digital Hunt for Duqu, a Dangerous and Cunning U.S.-Israeli Spy Virus - The Intercept - 0 views

  • “Is this related to what we talked about before?” Bencsáth said, referring to a previous discussion they’d had about testing new services the company planned to offer customers. “No, something else,” Bartos said. “Can you come now? It’s important. But don’t tell anyone where you’re going.” Bencsáth wolfed down the rest of his lunch and told his colleagues in the lab that he had a “red alert” and had to go. “Don’t ask,” he said as he ran out the door. A while later, he was at Bartos’ office, where a triage team had been assembled to address the problem they wanted to discuss. “We think we’ve been hacked,” Bartos said.
  • They found a suspicious file on a developer’s machine that had been created late at night when no one was working. The file was encrypted and compressed so they had no idea what was inside, but they suspected it was data the attackers had copied from the machine and planned to retrieve later. A search of the company’s network found a few more machines that had been infected as well. The triage team felt confident they had contained the attack but wanted Bencsáth’s help determining how the intruders had broken in and what they were after. The company had all the right protections in place—firewalls, antivirus, intrusion-detection and -prevention systems—and still the attackers got in.
  • Bencsáth was a teacher, not a malware hunter, and had never done such forensic work before. At the CrySyS Lab, where he was one of four advisers working with a handful of grad students, he did academic research for the European Union and occasional hands-on consulting work for other clients, but the latter was mostly run-of-the-mill cleanup work—mopping up and restoring systems after random virus infections. He’d never investigated a targeted hack before, let alone one that was still live, and was thrilled to have the chance. The only catch was, he couldn’t tell anyone what he was doing. Bartos’ company depended on the trust of customers, and if word got out that the company had been hacked, they could lose clients. The triage team had taken mirror images of the infected hard drives, so they and Bencsáth spent the rest of the afternoon poring over the copies in search of anything suspicious. By the end of the day, they’d found what they were looking for—an “infostealer” string of code that was designed to record passwords and other keystrokes on infected machines, as well as steal documents and take screenshots. It also catalogued any devices or systems that were connected to the machines so the attackers could build a blueprint of the company’s network architecture. The malware didn’t immediately siphon the stolen data from infected machines but instead stored it in a temporary file, like the one the triage team had found. The file grew fatter each time the infostealer sucked up data, until at some point the attackers would reach out to the machine to retrieve it from a server in India that served as a command-and-control node for the malware.
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  • Bencsáth took the mirror images and the company’s system logs with him, after they had been scrubbed of any sensitive customer data, and over the next few days scoured them for more malicious files, all the while being coy to his colleagues back at the lab about what he was doing. The triage team worked in parallel, and after several more days they had uncovered three additional suspicious files. When Bencsáth examined one of them—a kernel-mode driver, a program that helps the computer communicate with devices such as printers—his heart quickened. It was signed with a valid digital certificate from a company in Taiwan (digital certificates are documents ensuring that a piece of software is legitimate). Wait a minute, he thought. Stuxnet—the cyberweapon that was unleashed on Iran’s uranium-enrichment program—also used a driver that was signed with a certificate from a company in Taiwan. That one came from RealTek Semiconductor, but this certificate belonged to a different company, C-Media Electronics. The driver had been signed with the certificate in August 2009, around the same time Stuxnet had been unleashed on machines in Iran.
Paul Merrell

US manoeuvre in South China Sea leaves little wiggle room with China | World news | The... - 0 views

  • Barack Obama’s decision to send a US guided missile destroyer into disputed waters off the Spratly islands in the South China Sea on Tuesday has provoked predictable outpourings of rage and veiled threats from Beijing – but nothing, yet, in the way of a military response. The worry now is that the confrontation will catch fire, escalate and spread. Both China, which claims the Spratlys as its own, and the US, which does not recognise Beijing’s sovereignty, have boxed themselves into a rhetorical and tactical corner. With the Pentagon insisting it will repeat and extend such naval patrols at will, and with the People’s Liberation Army Navy determined to stop them, it is feared a head-on collision cannot be far away. China’s heated response to Tuesday’s manoeuvre by the USS Lassen off the Spratlys’ Mischief and Subi reefs, where Beijing is controversially building military airstrips and lighthouses on reclaimed land, left it little wiggle room. The American warship had been tracked and warned off, officials said, adding that what it termed an illegal incursion was a “threat to national sovereignty” and a deliberate provocation that could backfire.
  • Anticipating the US move earlier this month, foreign ministry spokeswoman Hua Chunying said: “China will never allow any country to violate China’s territorial waters and airspace in the South China Sea.” If ever a government has publicly laid down a red line, this is it. And Obama just crossed it. Having personally failed to find a compromise in White House talks with Xi Jinping, China’s president, last month, Obama has upped the ante. As is also the case with Xi, it is now all but impossible to envisage an American climbdown without enormous loss of face and prestige. By deploying a powerful warship, by declining to inform China in advance, and by insisting the US is upholding the universal principle of free navigation in international waters and will do so again whenever and wherever it wishes, Obama has deliberately challenged Beijing to do its worst.
  • China is in dispute over other South China Sea islands and reefs with several countries that are all more or less at one with the US on the issue, including the Philippines, Vietnam and Malaysia. Renewed trouble could flare up in any of these places. One possibility is the Scarborough Shoal, claimed by Manila, where clashes have continued on and off since 2012. Another obvious pressure point is the Senkaku islands (Diaoyu in Chinese) in the East China Sea, claimed by both Japan and China. In 2013 Beijing upped the ante, unilaterally declaring an air exclusion, or identification, zone in the area, which the US promptly breached with B52 bombers. This dispute forms part of the background to the military buildup ordered by Japan’s hawkish prime minister, Shinzo Abe, who set a record £27bn defence budget this year. (China’s military budget is roughly £90bn; that of the US is about £378bn).
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  • Chinese retaliation, when it comes, and it surely must, may not centre specifically on the Spratlys. There are plenty of other potential troublespots and flashpoints where Beijing might seek to give the Americans pause. In prospect is a sort of geopolitical chain reaction. A spokesman, Lu Kang, hinted at this on Tuesday: “China hopes to use peaceful means to resolve all the disputes, but if China has to make a response then the timing, method and tempo of the response will be made in accordance with China’s wishes and needs.”
  • Reacting to the perceived China threat, Abe is extending Okinawa’s defences and getting involved in South China Sea patrols in support of Washington. Japan also strengthened defence and security ties with Britain – a development that now makes David Cameron’s courtship of Beijing seem all the more incongruous. Taiwan is another powder keg that could be ignited by widening US-China confrontation. While Beijing regards Taiwan as a renegade province and seeks its return, the present-day status quo is underwritten by US military might.
  • US-China naval and aerial rivalry could expand even further afield. China is busy building a blue water fleet (a maritime force capable of operating across the deep waters of open oceans) including aircraft carriers, with the aim of challenging US dominance in the eastern Pacific. Chinese naval ships recently showed up off the Aleutian islands during an Obama visit to Alaska, the mineral-rich Arctic being another possible theatre. Meanwhile, regional western allies such as Australia have serious cause for concern that escalating superpower friction could draw them in.
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    The latest Obama idiocy.
Paul Merrell

EXCLUSIVE: Snowden reveals more US cyberspying details | South China Morning Post - 0 views

  • US spies are hacking into Chinese mobile phone companies to steal text messages and attacking the servers at Tsinghua University, Edward Snowden has told the Sunday Morning Post. The latest explosive revelations about US National Security Agency cybersnooping in Hong Kong and on the mainland are based on further scrutiny and clarification of information Snowden provided on June 12. The former technician for the US Central Intelligence Agency and contractor for the National Security Agency provided documents revealing attacks on computers over a four-year period.
  • The documents listed operational details of specific attacks on computers, including internet protocol (IP) addresses, dates of attacks and whether a computer was still being monitored remotely. The Sunday Morning Post can now reveal Snowden's claims that the NSA is: Extensive hacking of major telecommunication companies in China to access text messages   Sustained attacks on network backbones at Tsinghua University, China’s premier seat of learning   Hacking of computers at the Hong Kong headquarters of Pacnet, which owns one of the most extensive fibre optic submarine cable networks in the region
  • Pacnet, which recently signed major deals with the mainland's top mobile phone companies, owns more than 46,000 kilometres of fibre-optic cables. The cables connect its regional data centres across the Asia-Pacific region, including Hong Kong, the mainland, Japan, South Korea, Singapore and Taiwan. It also has offices in the US. Snowden claims that data from Chinese mobile phone companies has been compromised, with millions of private text messages mined by the NSA. Cybersecurity experts on the mainland have long feared mobile phone companies had fallen victim to back-door attacks because they were forced to go overseas to buy core technology for their networks. In recent years, those security concerns became more vocal and as a result domestic network equipment suppliers such as Huawai, Datang and ZTE started to close the technology gap, enabling the phone companies to reduce their reliance on foreign suppliers.
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  • As for the attacks at Tsinghua University, the leaked information points to the NSA hacking into the institute's servers as recently as January. Tsinghua is widely regarded as China's top education and research institute and carries out extensive work on next-generation web technologies. It is home to one of the mainland's six major network backbones, the China Education and Research Network.
Paul Merrell

Say Hello to China's ICBMs - 0 views

  • China's alleged deployment of a DF-41 strategic ballistic missile brigade to Heilongjiang province, bordering Russia, triggered a fascinating spectacle; how to spin – or not to spin - what necessarily represents a milestone in Russia-China's strategic partnership.The Global Times stressed Hong Kong and Taiwan media interpreted pictures of the DF-41 were taken in Heilongjiang, admitting there was no official confirmation from Beijing while hoping the "strategic edge" would soon be confirmed.
  • Russian media was way more explicit, with military analyst Konstantin Sivkov stressing that the DF-41, as positioned, would not be able to target Russia's Far East and most of Eastern Siberia; and Kremlin spokesman Dmitry Peskov noting that "if the reports prove correct, the military build-up in China is not perceived as a threat to our country."
  • The timing of the alleged deployment, with Team Trump doubling down on anti-Chinese rhetoric on their war of positioning geared to extract further trade concessions, may indeed betray a very graphic Beijing message.
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  • The DF-41, a three-stage solid-propellant missile, with a range of up to 15,000 km and capable of delivering up to 10 MIRVed nuclear warheads, is one of the most sophisticated – and secret — ICBMS on earth. Virtually everything about it is classified. Positioning in Heilongjiang, near the city of Daqing, close to the Russian border, implies a huge "dead zone" around it. So call it a mix of nuclear deterrence and a "message" to the ultimate target — the West Coast of the United States. This propels the matter to an even more serious sphere than a possible upcoming crisis in the South China Sea, where the Pentagon, under the pretext of "freedom of navigation", is obsessed in maintaining "access", Trump or no Trump. If there ever were an attempted American blockade in the South China Sea, it would be easy to take out the Chinese-developed islands/islets/rocks/shoals. But far from easy to grapple with the Chinese response; submarines with "carrier killer" missiles able to take out anything the US Navy may come up with.
  • It's virtually guaranteed that an official Chinese confirmation of the DF-41 deployment will accelerate a nuclear arms race, involving all players from Russia, China and the US to India and Pakistan and even North Korea.
  • But more than this, it will be yet another lethal blow to the Beltway's master strategy – first deployed by Dr. Zbig "Grand Chessboard" Brzezinski – of trying to prevent the emergence of any peer competitor, or worse, an alliance of peer competitors such as Russia-China. Just at the start of the Trump era, the new reality could not be more striking. Not long ago, it was "say hello to Russia-China". Now it's "say hello to China's ICBMs."
Paul Merrell

US tested biological weapons in Japan's Okinawa in the 60s - report - RT News - 0 views

  • The American army conducted experiments with biological weapons aimed at destroying rice crops on the Japanese island of Okinawa in the 60s, Kyodo news agency reports. The alleged target of the tests was the China and Southeast Asia region. Citing classified US documents, Japanese news agency Kyodo said the US military carried out experiments on their sovereign territory between 1961 and 1962. At this time Japan’s southern island of Okinawa was still under post-WWII, US jurisdiction. The US did similar tests in Taiwan and the American mainland, notes Kyodo.
  • "Field tests for stem rust of wheat and rice blast disease were begun at several sites in the (US) Midwest and south and in Okinawa with partial success in the accumulation of useful data," wrote Kyodo, citing its documents.
    • Paul Merrell
       
      This is only the latest disclosure of prior outrageous and criminal government behavior that was enabled only by unjustifiable government secrecy. Secrecy defeats accountability and is thus fundamentally anti-democratic, granting the government license to misbehave. 
Paul Merrell

Are We On The Verge Of A Massive Emerging Markets Currency Collapse? - 0 views

  • This time, the Federal Reserve has created a truly global problem.  A big chunk of the trillions of dollars that it pumped into the financial system over the past several years has flowed into emerging markets.  But now that the Fed has decided to begin "the taper", investors see it as a sign to pull the "hot money" out of emerging markets as rapidly as possible.  This is causing currencies to collapse and interest rates to soar all over the planet.  Argentina, Turkey, South Africa, Ukraine, Chile, Indonesia, Venezuela, India, Brazil, Taiwan and Malaysia are just some of the emerging markets that have been hit hard so far.  In fact, last week emerging market currencies experienced the biggest decline that we have seen since the financial crisis of 2008.  And all of this chaos in emerging markets is seriously spooking Wall Street as well.  The Dow has fallen nearly 500 points over the last two trading sessions alone.  If the Federal Reserve opts to taper even more in the coming days, this currency crisis could rapidly turn into a complete and total currency collapse.
Paul Merrell

CorpWatch : "Alchemy" Investigation Alleges Wall Street Fraud at Standard & P... - 0 views

  • On Monday, the U.S. Department of Justice sued S&P for $5 billion for misleading the Western Federal Corporate Credit Union, the first federally chartered credit union, which collapsed in 2008.  Sixteen states have joined the lawsuit while the U.S. Securities & Exchange Commission has also launched an investigation. S&P has offered to settle for $100 million instead without admitting any guilt.The lawsuits are based on a special government investigation named “Alchemy” into top ratings provided by S&P for “collateralized debt obligations” (CDOs) composed of sub-prime mortgages. The federal officials allege that analysts knew that the loans were likely to go sour.
  • Two dozen government lawyers spent several years, conducting over 150 interviews, to find out how much the ratings agency knew about the quality of the CDOs. Some of the documents they uncovered were pretty damning.“This market is a wildly spinning top which is going to end badly,” wrote David Tesher, an S&P managing director in an email on December 11, 2006, according to documents released by the government. “Let’s hope we are all wealthy and retired by the time this house of cards falters,” another S&P employee wrote four days later, according to documents released by the U.S. Senate."Watch out // Housing market went softer // Cooling down // Strong market is now much weaker // Subprime is boi-ling o-ver // Bringing down the house,” sang an analyst in a parody video of Talking Heads' 1983 song "Burning Down the House" that he recorded for his colleagues in March 2007.
  • “Claims that we deliberately kept ratings high when we knew they should be lower are simply not true. S.&P. has always been committed to serving the interests of investors and all market participants by providing independent opinions on creditworthiness based on available information,” the Wall Street firm said in a statement released to the press.S&P has also tried to claim in court that its ratings are protected under the first amendment to the U.S. constitution, which guarantees the right to free speech. Federal judges have been skeptical like Shira A. Scheindlin, who recently ruled against the argument.
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  • Other lawsuits have also uncovered evidence that Wall Street firms were aware of the problems with sub-prime loans as far back as 2005, according to documents just released in a New York court under a lawsuit against Morgan Stanley, a major U.S. investment bank, that was brought by the China Development Industrial Bank (CDIB) from Taiwan.  The bankers cracked jokes about the quality of the CDO that they sold to the Taiwanese suggesting that it should be called “Subprime Meltdown,” “Hitman,” “Nuclear Holocaust” and “Mike Tyson’s Punchout” or “Shitbag.”
  •  
    From February 2013.
Paul Merrell

No consensus on who was behind Sept 11: global poll | Reuters - 0 views

  • The survey of 16,063 people in 17 nations found majorities in only nine countries believe al Qaeda was behind the attacks on New York and Washington that killed about 3,000 people in 2001.U.S. officials squarely blame al Qaeda, whose leader Osama bin Laden has boasted of organizing the suicide attacks by his followers using hijacked commercial airliners.On average, 46 percent of those surveyed said al Qaeda was responsible, 15 percent said the U.S. government, 7 percent said Israel and 7 percent said some other perpetrator. One in four people said they did not know who was behind the attacks.The poll was conducted by WorldPublicOpinion.org, a collaborative project of research centers in various countries managed by the Program on International Policy Attitudes at the University of Maryland in the United States.In Europe, al Qaeda was cited by 56 percent of Britons and Italians, 63 percent of French and 64 percent of Germans. The U.S. government was to blame, according to 23 percent of Germans and 15 percent of Italians.
  • Respondents in the Middle East were especially likely to name a perpetrator other than al Qaeda, the poll found.Israel was behind the attacks, said 43 percent of people in Egypt, 31 percent in Jordan and 19 percent in the Palestinian Territories. The U.S. government was blamed by 36 percent of Turks and 27 percent of Palestinians.In Mexico, 30 percent cited the U.S. government and 33 percent named al Qaeda.The only countries with overwhelming majorities blaming al Qaeda were Kenya with 77 percent and Nigeria with 71 percent.Interviews were conducted in China, Indonesia, Nigeria, Russia, Egypt, France, Germany, Britain, Italy, Jordan, Kenya, Mexico, the Palestinian Territories, South Korea, Taiwan, Turkey and Ukraine.The poll, taken between July 15 and August 31, had a margin of error of plus or minus 3 to 4 percent.
  •  
    Poll from 2008. 
Paul Merrell

N.S.A. Report Outlined Goals for More Power - NYTimes.com - 0 views

  • Officials at the National Security Agency, intent on maintaining its dominance in intelligence collection, pledged last year to push to expand its surveillance powers, according to a top-secret strategy document.
  • In a February 2012 paper laying out the four-year strategy for the N.S.A.’s signals intelligence operations, which include the agency’s eavesdropping and communications data collection around the world, agency officials set an objective to “aggressively pursue legal authorities and a policy framework mapped more fully to the information age.” Written as an agency mission statement with broad goals, the five-page document said that existing American laws were not adequate to meet the needs of the N.S.A. to conduct broad surveillance in what it cited as “the golden age of Sigint,” or signals intelligence. “The interpretation and guidelines for applying our authorities, and in some cases the authorities themselves, have not kept pace with the complexity of the technology and target environments, or the operational expectations levied on N.S.A.’s mission,” the document concluded. Using sweeping language, the paper also outlined some of the agency’s other ambitions. They included defeating the cybersecurity practices of adversaries in order to acquire the data the agency needs from “anyone, anytime, anywhere.” The agency also said it would try to decrypt or bypass codes that keep communications secret by influencing “the global commercial encryption market through commercial relationships,” human spies and intelligence partners in other countries. It also talked of the need to “revolutionize” analysis of its vast collections of data to “radically increase operational impact.”
  • The N.S.A. document, titled “Sigint Strategy 2012-2016,” does not make clear what legal or policy changes the agency might seek. The N.S.A.’s powers are determined variously by Congress, executive orders and the nation’s secret intelligence court, and its operations are governed by layers of regulations. While asserting that the agency’s “culture of compliance” would not be compromised, N.S.A. officials argued that they needed more flexibility, according to the paper. Senior intelligence officials, responding to questions about the document, said that the N.S.A. believed that legal impediments limited its ability to conduct surveillance of terrorism suspects inside the United States. Despite an overhaul of national security law in 2008, the officials said, if a terrorism suspect who is under surveillance overseas enters the United States, the agency has to stop monitoring him until it obtains a warrant from the Foreign Intelligence Surveillance Court. “N.S.A.’s Sigint strategy is designed to guide investments in future capabilities and close gaps in current capabilities,” the agency said in a statement. “In an ever-changing technology and telecommunications environment, N.S.A. tries to get in front of issues to better fulfill the foreign-intelligence requirements of the U.S. government.”
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  • Critics, including some congressional leaders, say that the role of N.S.A. surveillance in thwarting terrorist attacks — often cited by the agency to justify expanded powers — has been exaggerated. In response to the controversy about its activities after Mr. Snowden’s disclosures, agency officials claimed that the N.S.A.’s sweeping domestic surveillance programs had helped in 54 “terrorist-related activities.” But under growing scrutiny, congressional staff members and other critics say that the use of such figures by defenders of the agency has drastically overstated the value of the domestic surveillance programs in counterterrorism. Agency leaders believe that the N.S.A. has never enjoyed such a target-rich environment as it does now because of the global explosion of digital information — and they want to make certain that they can dominate “the Sigint battle space” in the future, the document said. To be “optimally effective,” the paper said, “legal, policy and process authorities must be as adaptive and dynamic as the technological and operational advances we seek to exploit.” Intent on unlocking the secrets of adversaries, the paper underscores the agency’s long-term goal of being able to collect virtually everything available in the digital world. To achieve that objective, the paper suggests that the N.S.A. plans to gain greater access, in a variety of ways, to the infrastructure of the world’s telecommunications networks.
  • Yet the paper also shows how the agency believes it can influence and shape trends in high-tech industries in other ways to suit its needs. One of the agency’s goals is to “continue to invest in the industrial base and drive the state of the art for high performance computing to maintain pre-eminent cryptanalytic capability for the nation.” The paper added that the N.S.A. must seek to “identify new access, collection and exploitation methods by leveraging global business trends in data and communications services.” And it wants to find ways to combine all of its technical tools to enhance its surveillance powers. The N.S.A. will seek to integrate its “capabilities to reach previously inaccessible targets in support of exploitation, cyberdefense and cyberoperations,” the paper stated. The agency also intends to improve its access to encrypted communications used by individuals, businesses and foreign governments, the strategy document said. The N.S.A. has already had some success in defeating encryption, The New York Times has reported, but the document makes it clear that countering “ubiquitous, strong, commercial network encryption” is a top priority. The agency plans to fight back against the rise of encryption through relationships with companies that develop encryption tools and through espionage operations. In other countries, the document said, the N.S.A. must also “counter indigenous cryptographic programs by targeting their industrial bases with all available Sigint and Humint” — human intelligence, meaning spies.
  • Above all, the strategy paper suggests the N.S.A.’s vast view of its mission: nothing less than to “dramatically increase mastery of the global network.” Other N.S.A. documents offer hints of how the agency is trying to do just that. One program, code-named Treasure Map, provides what a secret N.S.A. PowerPoint presentation describes as “a near real-time, interactive map of the global Internet.” According to the undated PowerPoint presentation, disclosed by Mr. Snowden, Treasure Map gives the N.S.A. “a 300,000 foot view of the Internet.”  Relying on Internet routing data, commercial and Sigint information, Treasure Map is a sophisticated tool, one that the PowerPoint presentation describes as a “massive Internet mapping, analysis and exploration engine.” It collects Wi-Fi network and geolocation data, and between 30 million and 50 million unique Internet provider addresses — code that can reveal the location and owner of a computer, mobile device or router — are represented each day on Treasure Map, according to the document. It boasts that the program can map “any device, anywhere, all the time.”  The documents include addresses labeled as based in the “U.S.,” and because so much Internet traffic flows through the United States, it would be difficult to map much of the world without capturing such addresses.
  • The program takes advantage of the capabilities of other secret N.S.A. programs. To support Treasure Map, for example, the document states that another program, called Packaged Goods, tracks the “traceroutes” through which data flows around the Internet. Through Packaged Goods, the N.S.A. has gained access to “13 covered servers in unwitting data centers around the globe,” according to the PowerPoint. The document identifies a list of countries where the data centers are located, including Germany, Poland, Denmark, South Africa and Taiwan as well as Russia, China and Singapore.
Paul Merrell

U.S. warns China not to try Crimea-style action in Asia | Reuters - 0 views

  • (Reuters) - China should not doubt the U.S. commitment to defend its Asian allies and the prospect of economic retaliation should also discourage Beijing from using force to pursue territorial claims in Asia in the way Russia has in Crimea, a senior U.S. official said on Thursday. Daniel Russel, President Barack Obama's diplomatic point man for East Asia, said it was difficult to determine what China's intentions might be, but Russia's annexation of Crimea had heightened concerns among U.S. allies in the region about the possibility of China using force to pursue its claims."The net effect is to put more pressure on China to demonstrate that it remains committed to the peaceful resolution of the problems," Russel, the U.S. assistant secretary of state for East Asia, told the Senate Foreign Relations Committee.
  • Russel termed the deployment of large numbers of Chinese vessels in its dispute with the Philippines in the South China Sea "problematic" and said that Beijing had taken "what to us appears to be intimidating steps.""It is incumbent of all of the claimants to foreswear intimidation, coercion and other non-diplomatic or extra-legal means," he said.In Asia, China also has competing territorial claims with Japan and South Korea, as well as with Vietnam, Malaysia, Brunei and Taiwan in potentially energy-rich waters.Obama is due to visit Japan, South Korea, Malaysia and the Philippines from April 22, when he is expected to stress his commitment to a rebalancing of U.S. strategic and economic focus towards the Asia-Pacific region in the face of an increasingly assertive China.
Paul Merrell

Israel Won't Stop Spying on the U.S. - 0 views

  • Whatever happened to honor among thieves? When the National Security Agency was caught eavesdropping on German Chancellor Angela Merkel’s cell phone, it was considered a rude way to treat a friend. Now U.S. intelligence officials are saying—albeit very quietly, behind closed doors on Capitol Hill—that our Israeli “friends” have gone too far with their spying operations here. According to classified briefings on legislation that would lower visa restrictions on Israeli citizens, Jerusalem’s efforts to steal U.S. secrets under the cover of trade missions and joint defense technology contracts have “crossed red lines.”  Israel’s espionage activities in America are unrivaled and unseemly, counterspies have told members of the House Judiciary and Foreign Affairs committees, going far beyond activities by other close allies, such as Germany, France, the U.K. and Japan. A congressional staffer familiar with a briefing last January called the testimony “very sobering…alarming…even terrifying.” Another staffer called it “damaging.”  The Jewish state’s primary target: America’s industrial and technical secrets. 
  • “No other country close to the United States continues to cross the line on espionage like the Israelis do,” said a former congressional staffer who attended another classified briefing in late 2013, one of several in recent months given by officials from the Department of Homeland Security (DHS), the State Department, the FBI and the National Counterintelligence Directorate. 
  • “I don’t think anyone was surprised by these revelations,” the former aide said. “But when you step back and hear…that there are no other countries taking advantage of our security relationship the way the Israelis are for espionage purposes, it is quite shocking. I mean, it shouldn’t be lost on anyone that after all the hand-wringing over [Jonathan] Pollard, it’s still going on.” Israel and pro-Israel groups in America have long lobbied U.S. administrations to free Pollard, a former U.S. naval intelligence analyst serving a life sentence since 1987 for stealing tens of thousands of secrets for Israel. (U.S. counterintelligence officials suspect that Israel traded some of the Cold War-era information to Moscow in exchange for the emigration of Russian Jews.) After denying for over a decade that Pollard was its paid agent, Israel apologized and promised not to spy on U.S. soil again. Since then, more Israeli spies have been arrested and convicted by U.S. courts. 
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  • I.C. Smith, a former top FBI counterintelligence specialist during the Pollard affair, tells Newsweek, “In the early 1980s, dealing with the Israelis was, for those assigned that area, extremely frustrating. The Israelis were supremely confident that they had the clout, especially on the Hill, to basically get [away] with just about anything. This was the time of the Criteria Country List—later changed to the National Security Threat List—and I found it incredible that Taiwan and Vietnam, for instance, were on [it], when neither country had conducted activities that remotely approached the Pollard case, and neither had a history of, or a comparable capability to conduct, such activities.” While all this was going on, Israel was lobbying hard to be put on the short list of countries (38 today) whose citizens don’t need visas to visit here.  Until recently, the major sticking point was the Jewish state’s discriminatory and sometimes harsh treatment of Arab-Americans and U.S. Palestinians seeking to enter Israel. It has also failed to meet other requirements for the program, such as promptly and regularly reporting lost and stolen passports, officials say—a problem all the more pressing since Iranians were found to have boarded the missing Malaysia Airlines flight with stolen passports. 
  • “But this is the first time congressional aides have indicated that intelligence and national security concerns also are considerations in weighing Israel’s admission into the visa waiver program,” Jonathan Broder, the foreign and defense editor for CQ Roll Call, a Capitol Hill news site, wrote last month. He quoted a senior House aide as saying, “The U.S. intelligence community is concerned that adding Israel to the visa waiver program would make it easier for Israeli spies to enter the country.” The Israelis “thought they could just snap their fingers” and get friends in Congress to legislate visa changes, a Hill aide said, instead of going through the required hoops with DHS.
  • Congressional aides snorted at the announcement. “The Israelis haven’t done s**t to get themselves into the visa waiver program,” the former congressional aide said, echoing the views of two other House staffers working on the issue. “I mean, if the Israelis got themselves into this visa waiver program and if we were able to address this [intelligence community] concern—great, they’re a close ally, there are strong economic and cultural links between the two countries, it would be wonderful if more Israelis could come over here without visas. I’m sure it would spur investment and tourist dollars in our economy and so on and so forth. But what I find really funny is they haven’t done s**t to get into the program. They think that their friends in Congress can get them in, and that’s not the case. Congress can lower one or two of the barriers, but they can’t just legislate the Israelis in.” The path to visa waivers runs through DHS and can take years to navigate.
  • Israel is not even close to meeting those standards, a congressional aide said. “You’ve got to have machine-readable passports in place—the e-passports with a data chip in them. The Israelis have only just started to issue them to diplomats and senior officials and so forth, and that probably won’t be rolled out to the rest of their population for another 10 years.” But U.S. counterspies will get the final word. And since Israel is as likely to stop spying here as it is to give up matzo for Passover, the visa barriers are likely to stay up. As Paul Pillar, the CIA’s former national intelligence officer for the Near East and South Asia, told Newsweek, old habits are hard to break: Zionists were dispatching spies to America before there even was an Israel, to gather money and materials for the cause and later the fledgling state. Key components for Israel’s nuclear bombs were clandestinely obtained here. “They’ve found creative and inventive ways,” Pillar said, to get what they want. “If we give them free rein to send people over here, how are we going to stop that?” the former congressional aide asked. “They’re incredibly aggressive. They’re aggressive in all aspects of their relationship with the United States. Why would their intelligence relationship with us be any different?”
Joseph Skues

Noam Chomsky: The Real Reasons the U.S. Enables Israeli Crimes and Atrocities | World |... - 0 views

  • But the major change in relationships took place in 1967. Just take a look at USA aid to Israel. You can tell that right off. And in many other respects, it’s true, too. Similarly, the attitude towards Israel on the part of the intellectual community -- you know, media, commentary, journals, and so on -- that changed very sharply in 1967, from either lack of interest or sometimes even disdain, to almost passionate support. So what happened in 1967?
  • And Nasserite secular nationalism was considered a serious threat, because it was recognized that it might seek to take control of the immense resources of the region and use them for regional interest, rather than allow them to be centrally controlled and exploited by the United States and its allies. So that was a major issue.
  • While the U.S. was mired in Southeast Asia at the time -- it was right at the time, a little after the Cambodia invasion and everything was blowing up -- the U.S. couldn't do a thing about it. So, it asked Israel to mobilize its very substantial military forces and threaten Syria so that Syria would withdraw. Well, Israel did it. Syria withdrew. That was another gift to U.S. power and, in fact, U.S. aid to Israel shot up very sharply -- maybe quadrupled or something like that -- right at that time. Now at that time, that was the time when the so-called Nixon Doctrine was formulated.
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  • which will protect the Arab dictatorships from their own populations or any external threat.
  • what were called “cops on the beat” by Melvin Laird, Secretary of Defense
  • A part of the Nixon Doctrine was that the U.S., of course, has to control Middle-East oil resources -- that goes much farther back -- but it will do so through local, regional allies
  • military industry is very close to Israeli
  • Pakistan
  • Israel
  • that was sometimes called the periphery strategy: non-Arab states protecting the Arab dictatorships from any threat,
  • primarily the threat of what was called radical nationalism -- independent nationalism -- meaning taking over the armed resources for their own purposes.
  • But, anyway, that “cop” [Iran] was lost and Israel's position became even stronger in the structure that remained.
  • through the '80s Congress, under public pressure, was imposing constraints on Reagan's support for vicious and brutal dictatorship
  • Congress blocked i
  • which the Reagan administration was strongly supporting
  • So] that it [could] support South-African apartheid and the Guatemalan murderous dictatorship and other murderous regimes, Reagan needed a kind of network of terrorist states to help out, to evade the congressional and other limitations, and he turned to, at that time, Taiwan, but, in particular, Israel. Britain helped out. And that was another major service.
  • By far the most rabid pro-Israel newspaper in the country is the Wall Street Journal
  • the journal of the business community, and it reflects the support of the business world for Israel, which is quite strong
  • high-tech investment in Israe
  • a whole network
  • probably it's carried out terrorist acts, but by the standards of the U.S. and Israel, they're barely visible
  • Intel, for example, is building its next facility for construct development of the next generation of chips in Israel.
  • Most Jewish money goes to Democrats and most Jews vote Democratic
  • Republican Party is much more strongly supportive of Israeli power and atrocities than the Democrats are
  • AIPAC, which is a very influential lobby
  • there's Christian Zionism
  • they're facing virtually no opposition. Who's calling for support of the Palestinians?  
  • the occupation and the blockade on Gaz
  • , the occupation of East Jerusalem
  • the West Bank
  • here were free elections in Palestine in January 2006
  • recognized to be free
  • Israel and the United States instantly, within days, undertook perfectly public policies to try to punish the Palestinians for voting the wrong way in a free election
  • you couldn't see a more dramatic illustration of hatred and contempt for democracy unless it comes out the right way.    
  • tried to carry out a military coup to overthrow the elected government. Well, it failed. Hamas won and drove Fatah out of the Gaza Strip. Now, here, that's described as a demonstration of Hamas terror or something. What they did was preempt and block a U.S.-backed military coup
  • The terrorist list has been a historic joke, in fact, a sick joke
  • Up until 1982, Iraq -- Saddam Hussein's Iraq -- was on the terrorist list. 
  • 1982, the Reagan administration removed Iraq from the terrorist list. Why? Because they were moving to support Iraq, and, in fact, the Reagan administration and, in fact, the first Bush administration strongly supported Iraq right through its worst – Saddam, right through his worst atrocities. In fact, they tried to ... they succeeded, in fact, in preventing even criticism of condemnation of the worst atrocities, like the Halabja massacre -- and others
  • So they removed Iraq from the terrorist list because they wanted to support one of the worst monsters and terrorists in the region, namely Saddam Hussein.
  • Turkey
  • The main reason why Hezbollah is on the terrorist list is because it resisted Israeli occupation of Southern Lebanon and, in fact, drove Israel out of Southern Lebanon after 22 years of occupation -- that's called terrorism. In fact, Lebanon has a national holiday, May 25th, which is called Liberation Day. That's the national holiday in Lebanon commemorating, celebrating the Israeli withdrawal from southern Lebanon in year 2000, and largely under Hezbollah attack.  
  • which would be a major competitor in Egypt's elections, if Egypt permitted democratic elections,
  • The Egyptian dictatorship -- which the U.S. strongly backs, Obama personally strongly backs -- doesn't permit anything remotely like elections and is very brutal and harsh
  • I mean, Europe, the non-aligned countries -- the Arab League, the Organization of Islamic States, which includes Iran -- have all accepted the international consensus on the two-state settlement
  • They chose expansion.  The crucial question is what would the United States do? Well, there was an internal bureaucratic battle in the U.S., and Henry Kissinger won out. He was in favor of what he called “stalemate.” A stalemate meant no negotiations, just force.
  • So, sure, if Israel continues to settle in the occupied territories -- illegally, incidentally, as Israel recognized in 1967 (it's all illegal; they recognized it) -- it's undermining the possibilities for the viable existence of any small Palestinian entity. And as long as the United States and Israel continue with that, yes, there will be insecurity
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

China Steps In as World's New Bank - Bloomberg View - 0 views

  • Thanks to China, Christine Lagarde of the International Monetary Fund, Jim Yong Kim of the World Bank and Takehiko Nakao of the Asian Development Bank may no longer have much meaningful work to do. Beijing's move to bail out Russia, on top of its recent aid for Venezuela and Argentina, signals the death of the post-war Bretton Woods world. It’s also marks the beginning of the end for America's linchpin role in the global economy and Japan's influence in Asia. What is China's new Asian Infrastructure Investment Bank if not an ADB killer? If Japan, ADB's main benefactor, won't share the presidency with Asian peers, Beijing will just use its deep pockets to overpower it. Lagarde's and Kim’s shops also are looking at a future in which crisis-wracked governments call Beijing before Washington. 
  • China stepping up its role as lender of last resort upends an economic development game that's been decades in the making. The IMF, World Bank and ADB are bloated, change-adverse institutions.  When Ukraine received a $17 billion IMF-led bailout this year it was about shoring up a geopolitically important economy, not geopolitical blackmail. Chinese President Xi Jinping's government doesn't care about upgrading economies, the health of tax regimes or central bank reserves. It cares about loyalty. The quid pro quo: For our generous assistance we expect your full support on everything from Taiwan to territorial disputes to deadening the West’s pesky focus on human rights.
  • This may sound hyperbolic; Russia, Argentina and Venezuela are already at odds with the U.S. and its allies. But what about Europe? In 2011 and 2012, it looked to Beijing to save euro bond markets through massive purchases. Expect more of this dynamic in 2015 should fresh turmoil hit the euro zone, at which time Beijing will expect European leaders to pull their diplomatic punches. What happens if the Federal Reserve’s tapering slams economies from India to Indonesia and governments look to China for help? Why would Cambodia, Laos or Vietnam bother with the IMF’s conditions when China writes big checks with few strings attached? Beijing’s $24 billion currency swap program to help Russia is a sign of things to come. Russia, it's often said, is too nuclear to fail. As Moscow weathers the worst crisis since the 1998 default, it’s tempting to view China as a good global citizen. But Beijing is just enabling President Vladimir Putin, who’s now under zero pressure to diversify his economy away from oil. The same goes for China’s $2.3 billion currency swap with Argentina and its $4 billion loan to Venezuela. In the Chinese century, bad behavior has its rewards.
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    Note that this article is in a Bloomberg publication. Is economic reality beginning to dent the MSM propaganda on Wall Street?
Paul Merrell

Tomgram: Peter Van Buren, Iraq and the Battle of the Potomac | TomDispatch - 0 views

  • What Could Possibly Go Right? Four Months into Iraq War 3.0, the Cracks Are Showing -- on the Battlefield and at the Pentagon By Peter Van Buren Karl von Clausewitz, the famed Prussian military thinker, is best known for his aphorism “War is the continuation of state policy by other means.” But what happens to a war in the absence of coherent state policy? Actually, we now know. Washington’s Iraq War 3.0, Operation Inherent Resolve, is what happens. In its early stages, I asked sarcastically, “What could possibly go wrong?” As the mission enters its fourth month, the answer to that question is already grimly clear: just about everything. It may be time to ask, in all seriousness: What could possibly go right?
  • The U.S. Department of State lists 60 participants in the coalition of nations behind the U.S. efforts against the Islamic State. Many of those countries (Somalia, Iceland, Croatia, and Taiwan, among them) have never been heard from again outside the halls of Foggy Bottom. There is no evidence that America’s Arab “allies” like Saudi Arabia, Qatar, and the United Arab Emirates, whose funding had long-helped extreme Syrian rebel groups, including IS, and whose early participation in a handful of air strikes was trumpeted as a triumph, are still flying. Absent the few nations that often make an appearance at America's geopolitical parties (Canada, the Brits, the Aussies, and increasingly these days, the French), this international mess has quickly morphed into Washington's mess. Worse yet, nations like Turkey that might actually have taken on an important role in defeating the Islamic State seem to be largely sitting this one out. Despite the way it’s being reported in the U.S., the new war in the Middle East looks, to most of the world, like another case of American unilateralism, which plays right into the radical Islamic narrative.
  • While American strategy may be lacking on the battlefield, it’s alive and well at the Pentagon. A report in the Daily Beast, quoting a generous spurt of leaks, has recently made it all too clear that the Pentagon brass “are getting fed up with the short leash the White House put them on.” Senior leaders criticize the war’s decision-making process, overseen by National Security Adviser Susan Rice, as “manic and obsessed.” Secretary of Defense Chuck Hagel wrote a quickly leaked memo to Rice warning that the president’s Syria strategy was already unraveling thanks to its fogginess about the nature of its opposition to Assad and because it has no “endgame.” Meanwhile, the military's “intellectual” supporters are already beginning to talk -- shades of Vietnam -- about “Obama's quagmire.”
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  • The U.S. military came out of the Vietnam War vowing one thing: when Washington went looking for someone to blame, it would never again be left holding the bag.
  • Taken as a whole, the military's near-mutinous posture is eerily reminiscent of MacArthur's refusal to submit to President Harry Truman's political will during the Korean War. But don’t hold your breath for a Trumanesque dismissal of Dempsey any time soon. In the meantime, the Pentagon’s sights seem set on a fall guy, likely Susan Rice, who is particularly close to the president. The Pentagon has laid down its cards and they are clear enough: the White House is mismanaging the war. And its message is even clearer: given the refusal to consider sending in those ground-touching boots, Operation Inherent Resolve will fail. And when that happens, don't blame us; we warned you.
  • Joint Chiefs Chairman General Martin Dempsey has twice made public statements revealing his dissatisfaction with White House policy. In September, he said it would take 12,000 to 15,000 ground troops to effectively go after the Islamic State. Last month, he suggested that American ground troops might, in the future, be necessary to fight IS. Those statements contrast sharply with Obama's insistence that there will never be U.S. combat troops in this war. In another direct challenge, this time to the plan to create those Sunni National Guard units, Dempsey laid down his own conditions: no training and advising the tribes will begin until the Iraqi government agrees to arm the units themselves -- an unlikely outcome. Meanwhile, despite the White House's priority on training a new Syrian moderate force of 5,000 fighters, senior military leaders have yet to even select an officer to head up the vetting process that’s supposed to weed out less than moderate insurgents.
  • In or out, boots or not, whatever its own mistakes and follies, those who run the Pentagon and the U.S. military are already campaigning strategically to win at least one battle: when Iraq 3.0 collapses, as it most surely will, they will not be the ones hung out to dry. Of the very short list of what could go right, the smart money is on the Pentagon emerging victorious -- but only in Washington, not the Middle East.
Paul Merrell

A Coalition in Which Some Do More Than Others to Fight ISIS - The New York Times - 0 views

  • “We have mobilized 65 countries to go after ISIL,” Mr. Obama told reporters while on a trip to Turkey, using an acronym for the group. “The United States has built and led a broad coalition against ISIL of some 65 nations,” he said several days later.“The United States, France and our coalition of some 65 nations have been united in one mission — to destroy these ISIL terrorists,” he added a few days after that.The president has sought to evoke the sort of grand coalition the United States led in World War II. But when it comes to the war part of the war against the Islamic State, the 65-member coalition begins to shrink rapidly down to a coalition of just a handful.
  • As of Nov. 19, the United States had conducted 6,471 of the 8,289 airstrikes against the Islamic State, according to the Pentagon. American warplanes carried out about two-thirds of the strikes on Iraqi territory and 95 percent of those on Syrian territory. Australia, Canada, France and Jordan have conducted strikes in both countries. Belgium, Denmark, the Netherlands and Britain have participated just in Iraq, while Bahrain, Saudi Arabia, Turkey and the United Arab Emirates have participated just in Syria.That leaves more than 50 other coalition members that have never been directly involved in the air campaign. Some early participants, like Saudi Arabia, Bahrain, Jordan and the U.A.E., have not conducted a strike in months. While France has stepped up its strikes since the Paris attacks, Canada’s new prime minister is sticking to his vow to pull its six CF-18 fighter jets out of the bombing campaign, although Canadian surveillance and refueling aircraft may stay with the mission.
  • The Obama administration considers just 24 of the countries to be part of the core group that meets quarterly. The Italians are training Iraqi police officers, the Germans and Emiratis are working with 20 countries to stabilize war-torn areas, and 18 countries are training Iraqi and Kurdish military.But many others seem included in the membership rolls because they have adopted policies protecting their own security. Countries like Kuwait and Tunisia have broken up Islamist cells. Sweden is speeding up legislation to curb the abuse of Swedish passports and to criminalize foreign fighters. Albania approved a national strategy to combat violent extremism. Other members include Luxembourg, Montenegro, Iceland, Taiwan, Singapore, Bosnia and Herzegovina, Latvia, and Kosovo.
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  • One reason Mr. Obama has emphasized the size of the coalition lately has been to isolate Russia, which has begun its own military operations in Syria, independent of the United States and its allies, to bolster the government of President Bashar al-Assad.“We’ve got a coalition of 65 countries who’ve been active in pushing back against ISIL for quite some time,” Mr. Obama said last week. “Russia right now is a coalition of two — Iran and Russia, supporting Assad.”At a briefing this month, John Kirby, the State Department spokesman, defended the coalition when a reporter suggested Russia was doing more than many members.“It’s a coalition of the willing, which means every nation has to be willing to contribute what they can,” Mr. Kirby said. Not everyone can conduct airstrikes, he added, “but that doesn’t mean that other nations’ contributions aren’t important.”
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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