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Paul Merrell

How 'Free Markets' Defame 'Democracy' | Consortiumnews - 0 views

  • Venezuela seems to be following Ukraine on the neocon hit list for “regime change” as Washington punishes Caracas for acting against a perceived coup threat. But a broader problem is how the U.S. conflates “free markets” with “democracy,” giving “democracy” a bad name, writes Robert Parry.
  • The one common thread in modern U.S. foreign policy is an insistence on “free market” solutions to the world’s problems. That is, unless you’re lucky enough to live in a First World ally of the United States or your country is too big to bully.So, if you’re in France or Canada or – for that matter – China, you can have generous health and educational services and build a modern infrastructure. But if you’re a Third World country or otherwise vulnerable – like, say, Ukraine or Venezuela – Official Washington insists that you shred your social safety net and give free reign to private investors.
  • If you’re good and accept this “free market” domination, you become, by the U.S. definition, a “democracy” – even if doing so goes against the wishes of most of your citizens. In other words, it doesn’t matter what most voters want; they must accept the “magic of the market” to be deemed a “democracy.”Thus, in today’s U.S. parlance, “democracy” has come to mean almost the opposite of what it classically meant. Rather than rule by a majority of the people, you have rule by “the market,” which usually translates into rule by local oligarchs, rich foreigners and global banks.Governments that don’t follow these rules – by instead shaping their societies to address the needs of average citizens – are deemed “not free,” thus making them targets of U.S.-funded “non-governmental organizations,” which train activists, pay journalists and coordinate business groups to organize an opposition to get rid of these “un-democratic” governments.
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  • If a leader seeks to defend his or her nation’s sovereignty by such means as requiring these NGOs to register as “foreign agents,” the offending government is accused of violating “human rights” and becomes a candidate for more aggressive “regime change.”Currently, one of the big U.S. complaints against Russia is that it requires foreign-funded NGOs that seek to influence policy decisions to register as “foreign agents.” The New York Times and other Western publications have cited this 2012 law as proof that Russia has become a dictatorship, while ignoring the fact that the Russians modeled their legislation after a U.S. law known as the “Foreign Agent Registration Act.”So, it’s okay for the U.S. to label people who are paid by foreign entities to influence U.S. policies as “foreign agents” – and to imprison people who fail to register – but not for Russia to do the same. A number of these NGOs in Russia and elsewhere also are not “independent” entities but instead are financed by the U.S.-funded National Endowment for Democracy (NED) and the U.S. Agency for International Development.
  • There is even a circular element to this U.S. complaint. Leading the denunciation of Russia and other governments that restrain these U.S.-financed NGOs is Freedom House, which marks down countries on its “freedom index” when they balk at letting in this back-door U.S. influence. However, over the past three decades, Freedom House has become essentially a subsidiary of NED, a bought-and-paid-for NGO itself.
  • That takeover began in earnest in 1983 when CIA Director William Casey was focused on creating a funding mechanism to support Freedom House and other outside groups that would engage in propaganda and political action that the CIA had historically organized and financed covertly. Casey helped shape the plan for a congressionally funded entity that would serve as a conduit for this U.S. government money.But Casey recognized the need to hide the CIA’s strings. “Obviously we here [at CIA] should not get out front in the development of such an organization, nor should we appear to be a sponsor or advocate,” Casey said in one undated letter to then-White House counselor Edwin Meese III – as Casey urged creation of a “National Endowment.” [See Consortiumnews.com’s “CIA’s Hidden Hand in ‘Democracy’ Groups.”]Casey’s planning led to the 1983 creation of NED, which was put under the control of neoconservative Carl Gershman, who remains in charge to this day. Gershman’s NED now distributes more than $100 million a year, which included financing scores of activists, journalists and other groups inside Ukraine before last year’s coup and now pays for dozens of projects in Venezuela, the new emerging target for “regime change.”
  • But NED’s cash is only a part of how the U.S. government manipulates events in vulnerable countries. In Ukraine, prior to the February 2014 coup, neocon Assistant Secretary of State Victoria Nuland reminded Ukrainian business leaders that the United States had invested $5 billion in their “European aspirations.”Nuland then handpicked who would be the new leadership, telling U.S. Ambassador Geoffrey Pyatt that “Yats is the guy,” referring to “free market” politician Arseniy Yatsenyuk, who not surprisingly emerged as the new prime minister after a violent coup ousted elected President Viktor Yanukovych on Feb. 22, 2014.The coup also started a civil war that has claimed more than 6,000 lives, mostly ethnic Russians in eastern Ukraine who had supported Yanukovych and were targeted for a ruthless “anti-terrorist operation” spearheaded by neo-Nazi and other far-right militias dispatched by the U.S.-backed regime in Kiev. But Nuland blames everything on Russia’s President Vladimir Putin. [See Consortiumnews.com’s “Nuland’s Mastery of Ukraine Propaganda.”]On top of Ukraine’s horrific death toll, the country’s economy has largely collapsed, but Nuland, Yatsenyuk and other free-marketeers have devised a solution, in line with the wishes of the Washington-based International Monetary Fund: Austerity for the average Ukrainian.
  • Before the Senate Foreign Relations Committee on Tuesday, Nuland hailed “reforms” to turn Ukraine into a “free-market state,” including decisions “to reduce and cap pension benefits, increase work requirements and phase in a higher retirement age; … [and] cutting wasteful gas subsidies.”In other words, these “reforms” are designed to make the hard lives of average Ukrainians even harder – by slashing pensions, removing work protections, forcing people to work into their old age and making them pay more for heat during the winter.‘Sharing’ the Wealth In exchange for those “reforms,” the IMF approved $17.5 billion in aid that will be handled by Ukraine’s Finance Minister Natalie Jaresko, who until last December was a former U.S. diplomat responsible for a U.S. taxpayer-financed $150 million investment fund for Ukraine that was drained of money as she engaged in lucrative insider deals – deals that she has fought to keep secret. Now, Ms. Jaresko and her cronies will get a chance to be the caretakers of more than 100 times more money. [See Consortiumnews.com’s “Ukraine’s Finance Minister’s American ‘Values.’”]
  • Other prominent Americans have been circling around Ukraine’s “democratic” opportunities. For instance, Vice President Joe Biden’s son Hunter was named to the board of directors of Burisma Holdings, Ukraine’s largest private gas firm, a shadowy Cyprus-based company linked to Privat Bank.Privat Bank is controlled by the thuggish billionaire oligarch Ihor Kolomoysky, who was appointed by the Kiev regime to be governor of Dnipropetrovsk Oblast, a south-central province of Ukraine. In this tribute to “democracy,” the U.S.-backed Ukrainian authorities gave an oligarch his own province to rule. Kolomoysky also has helped finance paramilitary forces killing ethnic Russians in eastern Ukraine.Burisma has been lining up well-connected American lobbyists, too, some with ties to Secretary of State John Kerry, including Kerry’s former Senate chief of staff David Leiter, according to lobbying disclosures.As Time magazine reported, “Leiter’s involvement in the firm rounds out a power-packed team of politically-connected Americans that also includes a second new board member, Devon Archer, a Democratic bundler and former adviser to John Kerry’s 2004 presidential campaign. Both Archer and Hunter Biden have worked as business partners with Kerry’s son-in-law, Christopher Heinz, the founding partner of Rosemont Capital, a private-equity company.” [See Consortiumnews.com’s “The Whys Behind the Ukraine Crisis.”]
Paul Merrell

For most Americans, real wages have barely budged for decades | Pew Research Center - 0 views

  • On the face of it, these should be heady times for American workers. U.S. unemployment is as low as it’s been in nearly two decades (3.9% as of July) and the nation’s private-sector employers have been adding jobs for 101 straight months – 19.5 million since the Great Recession-related cuts finally abated in early 2010, and 1.5 million just since the beginning of the year. But despite the strong labor market, wage growth has lagged economists’ expectations. In fact, despite some ups and downs over the past several decades, today’s real average wage (that is, the wage after accounting for inflation) has about the same purchasing power it did 40 years ago. And what wage gains there have been have mostly flowed to the highest-paid tier of workers.
  • The disconnect between the job market and workers’ paychecks has fueled much of the recent activism in states and cities around raising minimum wages, and it also has become a factor in at least some of this year’s congressional campaigns.
  • After adjusting for inflation, however, today’s average hourly wage has just about the same purchasing power it did in 1978, following a long slide in the 1980s and early 1990s and bumpy, inconsistent growth since then. In fact, in real terms average hourly earnings peaked more than 45 years ago: The $4.03-an-hour rate recorded in January 1973 had the same purchasing power that $23.68 would today.
Gary Edwards

Do You Live In A Death Spiral State? - Forbes - 0 views

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    Takers vs. Makers.  It all comes down to that ratio.  Incredibly, California is not at the top of high risk States!  New Mexico holds that honor. excerpt: Don't buy a house in a state where private sector workers are outnumbered by folks dependent on government. Thinking about buying a house? Or a municipal bond? Be careful where you put your capital. Don't put it in a state at high risk of a fiscal tailspin. Eleven states make our list of danger spots for investors. They can look forward to a rising tax burden, deteriorating state finances and an exodus of employers. The list includes California, New York, Illinois and Ohio, along with some smaller states like New Mexico and Hawaii. "Ranked on the taker/maker ratio, our 11 death spiral states range from New Mexico, with 1.53 takers for every maker, down to Ohio, with a 1-to-1 ratio. The taker count is the number of state and local government workers plus the number of people on Medicaid plus 1 for each $100,000 of unfunded pension liabilities. Sources: the Bureau of Labor Statistics, the Kaiser Commission on Medicaid and a study of state worker pensions done in 2009 by two academics, Joshua Rauh and Rovert Novy-Marx. Professor Rauh estimates that the shortage in pension funding is on average a third higher today. The second element in the death spiral list is a scorecard of state credit-worthiness done by Conning & Co., a money manager known for its measures of risk in insurance company portfolios. Conning's analysis focuses more on dollars than body counts. Its formula downgrades states for large debts, an uncompetitive business climate, weak home prices and bad trends in employment."
Paul Merrell

US Presses Turkey to Stop Using Gold in Trade With Iran -- News from Antiwar.com - 0 views

  • US sanctions against Iran are turning into a major humanitarian problem. causing major hardship for average Iranians and medicine shortages in hospitals. Each week the US imposes more sanctions on commerce, forcing Iranians to find new ways to keep vital goods flowing.
  • So late last week, hopeful to keep getting paid for natural gas exports to major trading partner Turkey and facing banking sanctions that make any trade in any government currency all but impossible, Iran started trading in gold with Turkey. Since gold is a physical currency and not a paper money, the US can’t really do anything about it. At least that’s what Iran and Turkey think. The US State Department is pretty sure they can, however, and is threatening Turkey over possible “sanctionable transactions.”
  • Energy Minister Taner Yildiz, fresh off his unsuccessful attempted visit to Iraqi Kurdistan, shrugged off the threat insisting that the US can’t sanction trades of gold for natural gas and that Turkey is just going to keep doing it no matter how much the US complains. The trade is several billion dollars, making gold an ideal means of exchange. Average Iranians dealing in smaller transactions don’t have this luxury, but they’re not giving up either, moving toward virtual currency Bitcoin. Since transaction in Bitcoin aren’t even hypothetically trackable, this makes them entirely unsanctionable. This is only an option for smaller deals, however, as the sum of all Bitcoins is far short of what would be needed for major international commerce.
Gary Edwards

Columbine Survivor Pens Bold Open Letter to Obama Rejecting Gun Control: 'Whose Side Ar... - 0 views

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    Amazing letter from Columbine survivor, Evan Todd, to Obama, explaining why Obama's gun control proposals are non sense. Evan Todd's open letter to Obama, below. - Mr. President, As a student who was shot and wounded during the Columbine massacre, I have a few thoughts on the current gun debate. In regards to your gun control initiatives: Universal Background Checks First, a universal background check will have many devastating effects. It will arguably have the opposite impact of what you propose. If adopted, criminals will know that they can not pass a background check legally, so they will resort to other avenues. With the conditions being set by this initiative, it will create a large black market for weapons and will support more criminal activity and funnel additional money into the hands of thugs, criminals, and people who will do harm to American citizens. Second, universal background checks will create a huge bureaucracy that will cost an enormous amount of tax payers dollars and will straddle us with more debt. We cannot afford it now, let alone create another function of government that will have a huge monthly bill attached to it. Third, is a universal background check system possible without universal gun registration? If so, please define it for us. Universal registration can easily be used for universal confiscation. I am not at all implying that you, sir, would try such a measure, but we do need to think about our actions through the lens of time. It is not impossible to think that a tyrant, to the likes of Mao, Castro, Che, Hitler, Stalin, Mussolini, and others, could possibly rise to power in America. It could be five, ten, twenty, or one hundred years from now - but future generations have the natural right to protect themselves from tyrannical government just as much as we currently do. It is safe to assume that this liberty that our forefathers secured has been a thorn in the side of would-be tyrants ever since the Second Amendmen
Gary Edwards

International Community Rejects American Hegemony In Efforts To Capture Snowd... - 0 views

  • With regard to National Security Agency leaker Edward Snowden, it looks like the United States’ international hegemonic policies have encouraged a number of foreign leaders to question the Nation’s dedication to justice and resist calls to turn the whistle-blower over to U.S. authorities. There is a noticeable disconnect between what U.S. officials say on the international stage about the need to protect whistle-blowers and dissidents, and how officials go about dealing with people who engage in those activities at home.
  • Meanwhile, Ecuadorian Foreign Minister Ricardo Patino asked a question Monday that is likely on the minds of most average Americans:
  • Has Snowden really betrayed average Americans and their safety, or did he simply ruffle the feathers of the Nation’s powerful elite?
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  • Ecuador is considering offering Snowden permanent asylum, questioning whether the whistle-blower has any real chance of receiving a fair trial in his home country. The nation’s leaders say they feel compelled to offer Snowden asylum because they operate under a policy of placing human rights before the interests of any party.
  • Furthermore, Ecuadorian officials say it doesn’t make sense that a man who revealed rights abuses would face prosecution from the alleged abusers.
Paul Merrell

More Californians dreaming of a country without Trump: poll - 0 views

  • The election of Republican businessman Donald Trump as president of the United States has some Californians dreaming - of their own country.One in every three California residents supports the most populous U.S. state's peaceful withdrawal from the union, according to a new Reuters/Ipsos opinion poll, many of them Democrats strongly opposed to Trump's ascension to the country's highest office.The 32 percent support rate is sharply higher than the last time the poll asked Californians about secession, in 2014, when one-in-five or 20 percent favored it around the time Scotland held its independence referendum and voted to remain in the United Kingdom.California also far surpasses the national average favoring secession, which stood at 22 percent, down from 24 percent in 2014.
Gary Edwards

End the Fed! Congress Debates the Federal Reserve: Reform or Abolish? - 0 views

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    synopsis: Tuesday May 8th, 2012 - Dr. Ron Paul Chaired the Congressional subcommittee holding the first hearings on the Federal Reserve Bankster Cartel.  Dr. Paul has become famous around the world for his tireless efforts to audit, expose, and abolish the central bank. Even making that effort the centerpiece of his "Restore the Constitution - Take Back America" run for the presidency.  He published a best-selling book in 2009 entitled "End the Fed", a title that has become a rallying cry for millions of Americans angry about the institution's multi-trillion-dollar bailouts, market manipulations, corruption, and debasement of the currency. The subcommittee hearing, entitled "The Federal Reserve System: Mend It or End It?", examined a range of different proposals to reform the nation's monetary system - it was supposed to look at six different options emanating from both parties. One of the measures on the agenda was Congressman Paul's own "Federal Reserve Board Abolition Act," legislation to dismantle the central bank and restore sound money based on market principles. "More and more people are beginning to understand just how destructive the Federal Reserve's monetary policy has been. I hope that this hearing will kick start a serious discussion on the need to rein in the Fed," Chairman Paul said in a statement about the event. "A hundred years is far too long for Congress to have taken a hands-off approach. The Fed continues to reward Wall Street banks while destroying the dollar's purchasing power and driving up the cost of living for average Americans. This reckless behavior must come to an end."
Gary Edwards

The Top Twelve Reasons Why You Should Hate the Mortgage Settlement « naked ca... - 0 views

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    Must read stuff.  The Obama Foreclosure Settlement Act is a clever exit strategy for criminal Banksters having committed the most egregious fraud.  A $9 Trillion dollar problem, rife with criminal activities, is settled for a mere $25 Billion, much of which will come out of the taxpayers hide thanks to Fannie and Freddie guarantees.  This deal stinks of typical Obama crony banksterism.  Now we need to watch for how many millions the Banksters pour into the newly authorized Obama Super PACS.  Should be interesting. excerpt: As we've said before, this settlement is yet another raw demonstration of who wields power in America, and it isn't you and me. It's bad enough to see these negotiations come to their predictable, sorry outcome. It adds insult to injury to see some try to depict it as a win for long suffering, still abused homeowners. 1. We've now set a price for forgeries and fabricating documents. It's $2000 per loan. This is a rounding error compared to the chain of title problem these systematic practices were designed to circumvent. The cost is also trivial in comparison to the average loan, which is roughly $180k, so the settlement represents about 1% of loan balances. It is less than the price of the title insurance that banks failed to get when they transferred the loans to the trust. It is a fraction of the cost of the legal expenses when foreclosures are challenged. It's a great deal for the banks because no one is at any of the servicers going to jail for forgery and the banks have set the upper bound of the cost of riding roughshod over 300 years of real estate law....... 12. We'll now have to listen to banks and their sycophant defenders declaring victory despite being wrong on the law and the facts. They will proceed to marginalize and write off criticisms of the servicing practices that hurt homeowners and investors and are devastating communities. But the problems will fester and the housing market will continue to suffer. Inv
Paul Merrell

Iraq, Afghanistan Veterans Filing For Disability Benefits At Historic Rate - 0 views

  • A staggering 45 percent of the 1.6 million veterans from the wars in Iraq and Afghanistan are now seeking compensation for injuries they say are service-related. That is more than double the estimate of 21 percent who filed such claims after the Gulf War in the early 1990s, top government officials told The Associated Press. What's more, these new veterans are claiming eight to nine ailments on average, and the most recent ones over the last year are claiming 11 to 14. By comparison, Vietnam veterans are currently receiving compensation for fewer than four, on average, and those from World War II and Korea, just two.
  • The new veterans have different types of injuries than previous veterans did. That's partly because improvised bombs have been the main weapon and because body armor and improved battlefield care allowed many of them to survive wounds that in past wars proved fatal. "They're being kept alive at unprecedented rates," said Dr. David Cifu, the VA's medical rehabilitation chief. More than 95 percent of troops wounded in Iraq and Afghanistan have survived.
  • "You just can't keep sending people into war five, six or seven times and expect that they're going to come home just fine," he said. For taxpayers, the ordeal is just beginning. With any war, the cost of caring for veterans rises for several decades and peaks 30 to 40 years later, when diseases of aging are more common, said Harvard economist Linda Bilmes. She estimates the health care and disability costs of the recent wars at $600 billion to $900 billion.
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    The earlier Gulf War lasted only 100 hours, but still resulted in 21% compensable disabilities among its veterans, not counting those who are still in active military service. But the Iraq and Afghanistan wars still continue after 10 years, albeit we're now fighting the Iraq War with mercenaries only. And thus far, 45 per cent of those who served in Iraq and Aghanistan have applied for VA disability compensation, with far more still in service and thus ineligible for VA disability comp until they are discharged from the military. That's how badly the U.S. government treated its military in these latter wars, with many of them serving as many as seven combat tours of duty. That compares with the Viet Nam war where a 3-year enlistee normally saw only a single combat tour. The incidence of injury increases along with time spent in combat. And some types of injuries, e.g., posttraumatic stress disorder ("PTSD"), result from cumulative time spent in combat. Virtually everyone has their breaking point and the more time spent in combat the more likely that PTSD will result. Likewise, the more time spent handling projectiles weighted with depleted Uranium or walking through areas where such rounds have exploded, the more likely that radiation sickness or cancer will result. And a huge range of injuries may only result in disabilities well after the aggravating factor of aging has worked its magic. As Prof. Bilmes said in 2008, "in World War II and Vietnam and Korea, the number of wounded troops per fatality was about two-to-one or three-to-one. And now, the number of wounded troops per fatality is seven-to-one in combat, and if you include all of those wounded in non-combat and diseased seriously enough to have to be medevaced home, it's fifteen-to-one. So it's a very significant difference. And this difference compared to previous wars is, of course, you know, a great tribute to the medical care that they receive on the field and the enormous advance
Gary Edwards

2012 ELECTION - NEIL HOWE STYLE « The Burning Platform - 0 views

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    Excellent analysis of the 2012 elections based on recent polling data and the voting history of five generations. excerpt: Pundits have long been predicting that the presidential election will be much closer and much meaner in 2012 than it was in 2008. Closer it now is. According to the RCP Poll Average, the race is now a virtual tie: Incumbent Obama now leads by a mere 1.8 percent over Romney, whereas challenger Obama led McCain by 7.6 percent exactly four years ago. It will certainly revolve around a very different array of issues-much less argument about the war on terror and GOP performance, and a lot more about the stagnating economy and Democratic performance. In one respect, however, the next election will be a replay of the last: There will be a historically large divide in the preferences of younger voters (under 30) versus older voters (65+). In 2008, this divide (21 percentage points) was wider than in any election since the advent of age-bracketed voting data in the 1960s. The second-biggest divide (16 percentage points) was back in 1972, when nearly half of all young voters voted for McGovern while older voters went overwhelmingly for Nixon. I've been tracking generational leanings in the polls pretty carefully. The Pew Research Center has issued several reports (most notably, The Generation Gap and the 2012 Election) exploring this divide, and Time followed up with its own cover story ("The New Generation Gap"). More recently, Mike and Morley, Forbes, The New York Times, and many others have also weighed in. Bottom line: Every generation is today a bit more favorable toward Obama than they were in 2010 and a good deal less favorable than in 2008. The partisan gap between the Democrat-leaning young and the Republican-leaning old, however, remains as strong as ever-at around 20 percent. Back in 2008, the big story was how and why today's rising Millennial Generation voted by a large and decisive margin for the D
Gary Edwards

Why we are on the brink of the greatest Depression of all time  | Fox News - 0 views

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    Another one of those must read articles.  This time from -libertarian Wayne Allen Root.  Examining the facts and connecting the dots - big time. "Everywhere from FoxNews.0com to CNBC.com, I suddenly see commentators warning of pe0nding doom, economic collapse, and a new Great Depression. Weslcome to my club. Perhaps America's politicians and economists should have paid attention to an entrepreneur and small businessman that has been warning of economic collapse and a new Great Depression publicly for over two years.  More importantly, none of the current commentaries mention the "why's" of this slow motion economic collapse...beyond the obvious -- mountains of deficit and debt. None of them mention the dysfunctional structure of the current U.S. economy and the massive changes in the work ethic and mindset of the average American.  I am a successful small businessman and a patriot who loves America and always sees its greatness. I am also an optimistic, positive thinker who always sees the glass half full.  But not this time.  This time we are in such deep trouble, the only solution is a radical restructuring of the politicians, the economy, and the way we view personal responsibility versus government handouts. If those changes don't come then we are facing a long decline and the eventual end of America.  The economy is crumbling. The situation is turning more hopeless by the hour. The more government gets involved, the worse it gets. Coincidence? - This time the results are going to be dramatically worse than 1929. This time we are facing The Greatest Depression ever."
Paul Merrell

NSA collects millions of text messages daily in 'untargeted' global sweep | World news ... - 0 views

  • The National Security Agency has collected almost 200 million text messages a day from across the globe, using them to extract data including location, contact networks and credit card details, according to top-secret documents. The untargeted collection and storage of SMS messages – including their contacts – is revealed in a joint investigation between the Guardian and the UK’s Channel 4 News based on material provided by NSA whistleblower Edward Snowden. The documents also reveal the UK spy agency GCHQ has made use of the NSA database to search the metadata of “untargeted and unwarranted” communications belonging to people in the UK.
  • The NSA program, codenamed Dishfire, collects “pretty much everything it can”, according to GCHQ documents, rather than merely storing the communications of existing surveillance targets. The NSA has made extensive use of its vast text message database to extract information on people’s travel plans, contact books, financial transactions and more – including of individuals under no suspicion of illegal activity. An agency presentation from 2011 – subtitled “SMS Text Messages: A Goldmine to Exploit” – reveals the program collected an average of 194 million text messages a day in April of that year. In addition to storing the messages themselves, a further program known as “Prefer” conducted automated analysis on the untargeted communications.
  • The Prefer program uses automated text messages such as missed call alerts or texts sent with international roaming charges to extract information, which the agency describes as “content-derived metadata”, and explains that “such gems are not in current metadata stores and would enhance current analytics”. On average, each day the NSA was able to extract:
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  • • More than 5 million missed-call alerts, for use in contact-chaining analysis (working out someone’s social network from who they contact and when) • Details of 1.6 million border crossings a day, from network roaming alerts • More than 110,000 names, from electronic business cards, which also included the ability to extract and save images.
  • • Over 800,000 financial transactions, either through text-to-text payments or linking credit cards to phone users The agency was also able to extract geolocation data from more than 76,000 text messages a day, including from “requests by people for route info” and “setting up meetings”. Other travel information was obtained from itinerary texts sent by travel companies, even including cancellations and delays to travel plans.
  • Communications from US phone numbers, the documents suggest, were removed (or “minimized”) from the database – but those of other countries, including the UK, were retained. The revelation the NSA is collecting and extracting personal information from hundreds of millions of global text messages a day is likely to intensify international pressure on US president Barack Obama, who on Friday is set to give his response to the report of his NSA review panel.
  • While US attention has focused on whether the NSA’s controversial phone metadata program will be discontinued, the panel also suggested US spy agencies should pay more consideration to the privacy rights of foreigners, and reconsider spying efforts against allied heads of state and diplomats. In a statement to the Guardian, a spokeswoman for the NSA said any implication that the agency’s collection was “arbitrary and unconstrained is false”. The agency’s capabilities were directed only against “valid foreign intelligence targets” and were subject to stringent legal safeguards, she said.
  • “In contrast to [most] GCHQ equivalents, DISHFIRE contains a large volume of unselected SMS traffic,” it states (emphasis original). “This makes it particularly useful for the development of new targets, since it is possible to examine the content of messages sent months or even years before the target was known to be of interest.” It later explains in plain terms how useful this capability can be. Comparing Dishfire favourably to a GCHQ counterpart which only collects against phone numbers that have specifically been targeted, it states “Dishfire collects pretty much everything it can, so you can see SMS from a selector which is not targeted”.
  • The document also states the database allows for broad, bulk searches of keywords which could result in a high number of hits, rather than just narrow searches against particular phone numbers: “It is also possible to search against the content in bulk (e.g. for a name or home telephone number) if the target’s mobile phone number is not known.” Analysts are warned to be careful when searching content for terms relating to UK citizens or people currently residing in the UK, as these searches could be successful but would not be legal without a warrant or similar targeting authority. However, a note from GCHQ’s operational legalities team, dated May 2008, states agents can search Dishfire for “events” data relating to UK numbers – who is contacting who, and when.
Paul Merrell

HSBC faces £70bn capital hole, warn Hong Kong analysts - Yahoo Finance UK - 0 views

  • Research firm Forensic Asia calculates that HSBC has overstated the value of the assets on its balance sheet by more than £50bnHSBC could have overstated its assets by more than £50bn and ultimately need a capital injection of close to £70bn before the end of this decade, according to an incendiary report published by a Hong Kong-based research firm . Forensic Asia on Tuesday began its coverage of Britain’s largest banking group with a ‘sell’ recommendation, warning the lender had between $63.6bn (£38.7bn) and $92.3bn of “questionable assets” on its balance sheet, ranging from loan loss reserves and accrued interest to deferred tax assets, defined benefit pension schemes and opaque Level 3 assets. The broker’s note is written by two of its senior analysts, Thomas Monaco and Andrew Haskins . Mr Monaco is a former senior bank examiner at the Federal Reserve Bank of New York and previously worked as a fund manager at FrontPoint Partners, the hedge fund that spotted the US subprime bubble. As well as this, he has also spent a decade as a banks analyst at various leading investment banks. Mr Haskins previously worked at HSBC for 15 years, mainly as a telecoms analyst, and also co-ran Japanese bank Mitsubishi UFJ’s Hong Kong-based research team.
  • In the report, the analysts apply what they describe as a “moderate stress test” to the balance sheets of HSBC’s major subsidiaries. From this analysis they conclude that even using a low-end estimate, the assets of the bank’s Hong Kong division, for instance, are overstated by about $15bn, while those of its UK subsidiary could be overvalued by $17bn. Taking the analysis further, the report sets out the impact of incoming Basel III capital rules and says HSBC could be required at a minimum to raise close to $60bn in new capital by 2019 and potentially as much as $111bn. “In our view, HSBC has not made the necessary adjustments, during the quantitative easing reprieve. Rather, it has allowed legacy problems to linger as new ones in emerging markets gather pace. The result has been extreme earnings overstatement, causing HSBC to become one of the largest practitioners of capital forebearance globally. This charade appears to be ending, given how few earnings levers remain besides selling off core elements of the franchise and the stringencies of Basel III compliance,” wrote Forensic Asia.
  • The broker adds: “While having stated capital ratios well above peer averages is all well and good, HSBC’s stated capital ratios would appear to be nothing more than a mirage if our analysis is correct.” Even under current capital rules, Forensic Asia estimates that its valuations of HSBC’s group and subsidiary balance sheets suggests the bank has a current capital shortfall of $45.1bn. The report adds the workings do not include probable litigation costs linked to various claims on the bank, which they see coming in at no less than $10bn. HSBC, Britain’s biggest bank by market capitalisation and total assets, is also reckoned to be the UK’s best capitalised major lender, with a tier 1 ratio of 12.8pc, well above the minimum required by the Prudential (Frankfurt: PRU.F - news) Regulation Authority
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  • Most analysts rate HSBC shares a 'buy', arguing the bank has plenty of excess capital. Deutsche Bank (Xetra: DBK.DE - news) reckons the lender has $500bn in excess deposits and liquidity and will benefit strongly when interest rates rise. Simon Maughan, head of research at OTAS Technologies, told CNBC : “If we look at the credit market and implied volatility on HSBS shares, it’s significantly less than the European bank average—whether it’s equity, credit or option markets, they’re not concerned by this story. “What Tom [Thomas Monaco] is saying is HSBC has surplus capital but under his stress test environment, that disappears—well, that’s kind of what surplus capital is there for in the first place. “Secondly he’s saying they haven’t used the period of QE to dispose of legacy assets. It’s precisely because of HSBC’s capital strength that they made the decision to hold onto those legacy assets and get a better price for them when they matured ... I don’t think that it’s something major shareholders, certainly the ones we speak to, are concerned about.” HSBC declined to comment.
Paul Merrell

Americans on Wrong Side of Income Gap Run Out of Means to Cope - 0 views

  • “We’ve exhausted our coping mechanisms,” said Alan Krueger, an economics professor at Princeton University in New Jersey and former chairman of President Barack Obama’s Council of Economic Advisers. “They weren’t sustainable.” The result has been a downsizing of expectations. By almost two to one — 64 percent to 33 percent — Americans say the U.S. no longer offers everyone an equal chance to get ahead, according to the latest Bloomberg National Poll. The lack of faith is especially pronounced among those making less than $50,000 a year, with close to three-quarters in the Dec. 6-9 survey saying the economy is unfair.
  • The diminished expectations have implications for the economy. Workers are clinging to their jobs as prospects fade for higher-paying employment. Households are socking away more money and charging less on credit cards. And young adults are living with their parents longer rather than venturing out on their own. In the meantime, record-high stock prices are enriching wealthier Americans, exacerbating polarization and bringing income inequality to the political forefront. Even independent government agencies like the Securities and Exchange Commission and the Federal Reserve have been dragged into the debate.
  • “The basic bargain at the heart of our economy has frayed,” Obama said in a Dec. 4 speech in Washington. “This is the defining challenge of our time: Making sure our economy works for every working American.” Democratic lawmakers also intend to press next year for a higher minimum wage to tackle the yawning gap between rich and poor, Durbin said. Republicans aren’t ceding the issue. “The American dream is certainly more in doubt than in decades,” House Speaker John Boehner of Ohio said in response to Obama’s speech. “But after more than five years in office, the president has no one to blame but himself.”
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  • Income inequality has been rising more or less steadily since the mid-1970s. The Gini coefficient, a broad-based measure of inequality, stood at a record high last year, according to Census Bureau data dating back 46 years.
  • Women who became unemployed during the recession and its aftermath have been slower to find new positions. Among women losing jobs they’d held for at least three years between January 2009 and the end of 2011, 50 percent were re-employed by the start of 2012, while the share for men was 61 percent, according to a Bureau of Labor Statistics report released in February. Households turned to stepped-up borrowing to help make ends meet, until that avenue was shut off by the collapse of house prices. About 10.8 million homeowners still owed more money on their mortgages than their properties were worth in the third quarter, according to Seattle-based Zillow Inc. The fallout has made many Americans less inclined to take risks. The quits rate — the proportion of Americans in the workforce who voluntarily left their jobs — stood at 1.7 percent in October. While that’s up from 1.5 percent a year earlier, it’s below the 2.2 percent average for 2006, the year house prices started falling, government data show.
  • “The middle has really collapsed,” said Lawrence Katz, an economics professor at Harvard University in Cambridge, Massachusetts, and a former chief economist at the Labor Department in Washington. Even those with college degrees are having trouble keeping up, he said. While they earn more than those with less schooling, they’ve seen no real wage growth in recent years. The median income of men 25 years of age and older with a bachelor’s degree was $56,656 last year, 10 percent less than in 2007 after taking account of inflation, according to Census data.
  • It’s the richest of the rich who are reaping the most benefit as an increasingly interconnected and technologically sophisticated world puts a premium on those perceived to have the highest skills — a phenomenon dubbed “winner take all” by Cornell University Professor Robert Frank. Government policies also play a role. The Treasury Department, for instance, taxes capital gains racked up by the wealthy on the sale of shares, bonds and other assets at about half the rate of ordinary income. The top 1 percent captured 95 percent of the gains in incomes in the first three years of the recovery, based on analysis of tax returns by Saez. Those less well-off, meanwhile, are running out of ways to cope. The percentage of working-age women who are in the labor force steadily climbed from a post-World War II low of 32 percent to a peak of 60.3 percent in April 2000, fueling a jump in dual-income households and helping Americans deal with slow wage growth for a while. Since the recession ended, the workforce participation rate for women has been in decline, echoing a longer-running trend among men. November data showed 57 percent of women in the labor force and 69.4 percent of men.
  • The disparity has widened since the recovery began in mid-2009. The richest 10 percent of Americans earned a larger share of income last year than at any time since 1917, according to Emmanuel Saez, an economist at the University of California at Berkeley. Those in the top one-tenth of income distribution made at least $146,000 in 2012, almost 12 times what those in the bottom tenth made, Census Bureau data show. Economists have posited a variety of explanations for the growing differences in incomes. Manufacturing companies moved once high-paying jobs abroad, to China and elsewhere. Technological advances led to the loss of clerical and office work, especially relating to routine tasks. The decline of unions — 11.3 percent of workers were represented in 2012 compared with 20.1 percent in 1983 — has advantaged bosses at the expense of their employees.
  • Millennials — adults aged 18 to 32 — are still slow to set out on their own more than four years after the recession ended, according to an Oct. 18 report by the Pew Research Center in Washington. Just over one in three head their own households, close to a 38-year low set in 2010. Obama has proposed a raft of policies to attack the widening wage gap — from simplifying the tax code and increasing exports to enhancing worker training and boosting pre-kindergarten education. Yet in a divided Washington he hasn’t made much progress pushing them through. The president’s renewed focus on income inequality has more to do with politics than policy, said Douglas Holtz-Eakin, president of the American Action Forum, a self-described center- right institute in Washington.
  • “It’s great politics to demagogue income distribution and complain about the rich getting ahead and the poor falling behind,” said Holtz-Eakin, a former Congressional Budget Office director. “The substance of what he’s actually done doesn’t match the enormity of the problem as he’s portrayed it.”
  • The wage-gap debate has reverberated to other parts of Washington, as the SEC published a rule Sept. 18 that would compel public companies to reveal pay ratios between chief executives and their employees. While businesses have decried the requirement as overreach, some investors welcome the data as a way to help assess a company’s health.
  • Across companies in the S&P 500, the average multiple of CEO compensation to that of rank-and-file workers is 204, up 20 percent since 2009, according to data compiled by Bloomberg in April. The Fed also has been caught up in the debate over growing income disparities. Lawmakers from both parties have questioned whether its bond-buying policy, called quantitative easing, has benefited the rich at the expense of those less well-off by boosting prices of stocks and other assets.
  • The S&P 500 stock index has risen 29 percent in 2013. The richest third of U.S. households account for 89 percent of all equities ownership, according to the Center for Retirement Research at Boston College.
  • Janet Yellen, nominated to take over as Fed chairman next year, defended the central bank’s actions at a Senate Banking Committee hearing on Nov. 14. “The policies we’ve undertaken have been meant to generate a robust recovery,” Yellen told the committee. The growing calls for action to reduce income inequality have translated into a national push for a higher minimum wage. Fast-food workers in 100 cities took to the streets Dec. 5 to demand a $15 hourly salary.
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    Monetary policy of, by, and for banksters continues in the U.S. One irony is that banksters press for transition to an all digital currency so that savers can be penalized, a blatant "trickle-up"economic policy, whilst also pressing for more bank bailouts, wielding the thoroughly-discredited "trickle down" economic theory. But "trickle down" theory, in the context of bank bailouts, has not successfully trickled down and the only beneficiaries have been the few Americans who can still invest in the stock market, paying the highest dividends to the wealthiest among us. Has their ever been a time when the stock market's behavior has been so divorced from the well-being of the middle and lower economic classes? I doubt there has been at least in the last 50 years. Where would we be if the bank bail-out trillions had instead been mailed as checks to the middle and lower economic classes? "Trickle up" works and that is what built the American economy to its peak in inflation-adjusted dollars -- an affluent middle class. But do not expect leadership from Washington, D.C. in correcting income inquequality; only political rhetoric and a fight over extension of unemployment benefits, now lapsed. "According to the World Bank, the GINI coefficient "measures the extent to which the distribution of income or consumption expenditure among individuals households within an economy deviates from a perfectly equal distribution." Therefore it is used as an indication of income inequality within countries. ... In the late 2000s, Chile had the highest GINI coefficient, after taxes and transfers, among OECD member countries. The United States, Turkey and Mexico came right before it. At the other end of the scale, Slovenia, Denmark and Norway led the ranking with the lowest levels of income inequality." http://www.gfmag.com/tools/global-database/economic-data/11944-wealth-distribution-income-inequality.html#ixzz2pGpv4xGZ Higher minimum wages? How about instead abolishing the Feder
Gary Edwards

1913: The Blow That Killed America 100 Years Ago - 0 views

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    "There is a lot of ruin in a nation," wrote Adam Smith. His point was that it takes a long time for nations to fall, even when they're dead on their feet. And he was certainly right. America took its fatal blow in 1913, one hundred years ago; it just hasn't hit the ground yet. This is a slow process, but it's actually fast compared to the Romans. It took them several centuries to collapse . The confusing thing about our current situation is that America - and by that I mean the noble America that so many of us grew up believing was real - has long been poisoned. Its liver, kidneys, and spleen have all stopped functioning. Its heart beats slowly and irregularly. But it still stands on its feet and presents itself as alive to all those who would let their eyes fool them. And I'm not without sympathy for those who want to believe. They find themselves in a world where politics is almighty, and where their comfort, prosperity, and perhaps their survival all hang in a delicate balance. They don't want to upset anything, and questioning the bosses is a good way to get yelled at. But just because someone wants to believe doesn't make it so. We are not children and we are not powerless. We Producers should never be intimidated by those who live at our expense. So let's start looking at the facts. 1913: The Horrible Year For all the problems America had prior to 1913 (including the unnecessary and horrifying Civil War), nothing spelled the death of the nation like the horrors of 1913. Here are the key dates: February 3rd : The 16th Amendment to the United States Constitution was ratified, authorizing the Federal government to impose income taxes on individuals. An amendment to a tariff act in 1894 had attempted to do this, but since it was clearly unconstitutional, the Supreme Court struck it down. As a result - and mostly under the banner of bleeding the rich - the 16th amendment was promoted and passed. As a result, the Revenue Act of 1
Gary Edwards

"War is a Racket" by General Smedly Butler - 1 views

  • by MAJOR GENERAL SMEDLEY D. BUTLER, USMC - Retired TWO-TIME Congressional Medal of Honor Recipient FULL TEXT ON LINE FREE
  • GET THE NEW PAPERBACK EDITION including two bonus titles.
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    An accidental find, the full text online of USMC Maj. Gen. Smedley Butler's 1935 book, War Is a Racket. Butler served in the Marine Corps from 1899 to 1931 and at the time of his retirement was the most-decorated Marine in history, for both valor and accomplishments. Following his retirement, he became a vehement anti-war activist and public speaker.  This book is easily his most-cited and most-quoted published work. You can capture the flavor from an article he published in a magazine that included the following lines: "I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents." http://en.wikipedia.org/wiki/Smedley_Butler#Lectures  I look forward to reading this book. The book was reprinted in 2003 and is available from the linked web site, together with two bonus titles. 
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    "WAR IS A RACKET" - free online book CHAPTER ONE WAR is a racket. It always has been. It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives. A racket is best described, I believe, as something that is not what it seems to the majority of the people. Only a small "inside" group knows what it is about. It is conducted for the benefit of the very few, at the expense of the very many. Out of war a few people make huge fortunes. In the World War [I] a mere handful garnered the profits of the conflict. At least 21,000 new millionaires and billionaires were made in the United States during the World War. That many admitted their huge blood gains in their income tax returns. How many other war millionaires falsified their tax returns no one knows. How many of these war millionaires shouldered a rifle? How many of them dug a trench? How many of them knew what it meant to go hungry in a rat-infested dug-out? How many of them spent sleepless, frightened nights, ducking shells and shrapnel and machine gun bullets? How many of them parried a bayonet thrust of an enemy? How many of them were wounded or killed in battle? Out of war nations acquire additional territory, if they are victorious. They just take it. This newly acquired territory promptly is exploited by the few - the selfsame few who wrung dollars out of blood in the war. The general public shoulders the bill. And what is this bill? This bill renders a horrible accounting. Newly placed gravestones. Mangled bodies. Shattered minds. Broken hearts and homes. Economic instability. Depression and all its attendant miseries. Back-breaking taxation for generations and generations. For a great many years, as a soldier, I had a suspicion that war was a racket; not until I retired to civil life did I fully realize it. Now that I see the international war clouds g
Gary Edwards

The List: Unnecessarily Shut Down by Obama to Inflict Public Pain - 0 views

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    "The media may or may not report on these individual occurrences, but what they will never do is provide the American people with the full context and scope of Obama's shrill pettiness. Below is a list of illogical, unnecessary, and shockingly spiteful moves our government is making in the name of essential and non-essential. This list will be regularly updated, and if you have something you feel should be added, please email me at jnolte@breitbart.com or tweet me @NolteNC.Please include a link to the news source. -- 1. Treatments for Children Suffering From Cancer - The GOP have agreed to a compromise by funding part of the government, including the National Institutes of Health, which offers children with cancer last-chance experimental treatment. Obama has threatened to veto this funding. 2. The World War II Memorial - The WWII memorial on the DC Mall is a 24/7 open-air memorial that is not regularly staffed. Although the White House must have known that WWII veterans in their eighties and nineties had already booked flights to visit this memorial, the White House still found the resources to spitefully barricade the attraction.  The Republican National Committee has offered to cover any costs required to keep the memorial open. The White House refused. Moreover, like the NIH, the GOP will pass a compromise bill that would fund America's national parks. Obama has threatened to veto that bill. 3. Furloughed Military Chaplains Not Allowed to Work for Free - Furloughed military chaplains willing to celebrate Mass and baptisms for free have been told they will be punished for doing so. 4. Business Stops In Florida Keys - Although the GOP have agreed to compromise in the ongoing budget stalemate and fund the parks, Obama has threatened to veto that funding. As a result, small businesses, hunters, and commercial fisherman can't practice their trade. While the feds have deemed the personnel necessary to keep this area open "non-essential," the "enforcement office
Paul Merrell

US adults score below world average in math, reading | Al Jazeera America - 0 views

  • American adults scored below the international average on a global test in math, reading and problem-solving using technology — all skills considered critical for global competitiveness and economic strength. Adults in Japan, Canada, Australia, Finland and multiple other countries scored significantly higher than the United States in all three areas on the test, according to results released Tuesday by the Organization for Economic Cooperation and Development
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    American exceptionalism takes another body blow. Do we still lead in anything other than destructiveness?
Paul Merrell

Obama confidant's spine-chilling proposal - Salon.com - 0 views

  • Cass Sunstein has long been one of Barack Obama’s closest confidants.  Often mentioned as a likely Obama nominee to the Supreme Court, Sunstein is currently Obama’s head of the Office of Information and Regulatory Affairs where, among other things, he is responsible for “overseeing policies relating to privacy, information quality, and statistical programs.”  In 2008, while at Harvard Law School, Sunstein co-wrote a truly pernicious paper proposing that the U.S. Government employ teams of covert agents and pseudo-”independent” advocates to “cognitively infiltrate” online groups and websites — as well as other activist groups — which advocate views that Sunstein deems “false conspiracy theories” about the Government.  This would be designed to increase citizens’ faith in government officials and undermine the credibility of conspiracists.  The paper’s abstract can be read, and the full paper downloaded, here. Sunstein advocates that the Government’s stealth infiltration should be accomplished by sending covert agents into “chat rooms, online social networks, or even real-space groups.”  He also proposes that the Government make secret payments to so-called “independent” credible voices to bolster the Government’s messaging (on the ground that those who don’t believe government sources will be more inclined to listen to those who appear independent while secretly acting on behalf of the Government).   This program would target those advocating false “conspiracy theories,” which they define to mean: “an attempt to explain an event or practice by reference to the machinations of powerful people, who have also managed to conceal their role.”  Sunstein’s 2008 paper was flagged by this blogger, and then amplified in an excellent report by Raw Story‘s Daniel Tencer.
  • There’s no evidence that the Obama administration has actually implemented a program exactly of the type advocated by Sunstein, though in light of this paper and the fact that Sunstein’s position would include exactly such policies, that question certainly ought to be asked.  Regardless, Sunstein’s closeness to the President, as well as the highly influential position he occupies, merits an examination of the mentality behind what he wrote.  This isn’t an instance where some government official wrote a bizarre paper in college 30 years ago about matters unrelated to his official powers; this was written 18 months ago, at a time when the ascendancy of Sunstein’s close friend to the Presidency looked likely, in exactly the area he now oversees.  Additionally, the government-controlled messaging that Sunstein desires has been a prominent feature of U.S. Government actions over the last decade, including in some recently revealed practices of the current administration, and the mindset in which it is grounded explains a great deal about our political class.  All of that makes Sunstein’s paper worth examining in greater detail.
  • Initially, note how similar Sunstein’s proposal is to multiple, controversial stealth efforts by the Bush administration to secretly influence and shape our political debates.  The Bush Pentagon employed teams of former Generals to pose as “independent analysts” in the media while secretly coordinating their talking points and messaging about wars and detention policies with the Pentagon.  Bush officials secretly paid supposedly “independent” voices, such as Armstrong Williams and Maggie Gallagher, to advocate pro-Bush policies while failing to disclose their contracts.  In Iraq, the Bush Pentagon hired a company, Lincoln Park, which paid newspapers to plant pro-U.S. articles while pretending it came from Iraqi citizens.  In response to all of this, Democrats typically accused the Bush administration of engaging in government-sponsored propaganda — and when it was done domestically, suggested this was illegal propaganda.  Indeed, there is a very strong case to make that what Sunstein is advocating is itself illegal under long-standing statutes prohibiting government ”propaganda” within the U.S., aimed at American citizens: As explained in a March 21, 2005 report by the Congressional Research Service, “publicity or propaganda” is defined by the U.S. Government Accountability Office (GAO) to mean either (1) self-aggrandizement by public officials, (2) purely partisan activity, or (3) “covert propaganda.”  By covert propaganda, GAO means information which originates from the government but is unattributed and made to appear as though it came from a third party.
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  • Covert government propaganda is exactly what Sunstein craves.  His mentality is indistinguishable from the Bush mindset that led to these abuses, and he hardly tries to claim otherwise.  Indeed, he favorably cites both the covert Lincoln Park program as well as Paul Bremer’s closing of Iraqi newspapers which published stories the U.S. Government disliked, and justifies them as arguably necessary to combat “false conspiracy theories” in Iraq — the same goal Sunstein has for the U.S.Sunstein’s response to these criticisms is easy to find in what he writes, and is as telling as the proposal itself.  He acknowledges that some “conspiracy theories” previously dismissed as insane and fringe have turned out to be entirely true (his examples:  the CIA really did secretly administer LSD in “mind control” experiments; the DOD really did plot the commission of terrorist acts inside the U.S. with the intent to blame Castro; the Nixon White House really did bug the DNC headquarters).  Given that history, how could it possibly be justified for the U.S. Government to institute covert programs designed to undermine anti-government “conspiracy theories,” discredit government critics, and increase faith and trust in government pronouncements?  Because, says Sunstein, such powers are warranted only when wielded by truly well-intentioned government officials who want to spread The Truth and Do Good — i.e., when used by people like Cass Sunstein and Barack Obama
  • Throughout, we assume a well-motivated government that aims to eliminate conspiracy theories, or draw their poison, if and only if social welfare is improved by doing so. But it’s precisely because the Government is so often not “well-motivated” that such powers are so dangerous.  Advocating them on the ground that “we will use them well” is every authoritarian’s claim.  More than anything else, this is the toxic mentality that consumes our political culture:  when our side does X, X is Good, because we’re Good and are working for Good outcomes.  That was what led hordes of Bush followers to endorse the same large-government surveillance programs they long claimed to oppose, and what leads so many Obama supporters now to justify actions that they spent the last eight years opposing.
  • Consider the recent revelation that the Obama administration has been making very large, undisclosed payments to MIT Professor Jonathan Gruber to provide consultation on the President’s health care plan.  With this lucrative arrangement in place, Gruber spent the entire year offering public justifications for Obama’s health care plan, typically without disclosing these payments, and far worse, was repeatedly held out by the White House — falsely — as an “independent” or “objective” authority.  Obama allies in the media constantly cited Gruber’s analysis to support their defenses of the President’s plan, and the White House, in turn, then cited those media reports as proof that their plan would succeed.  This created an infinite “feedback loop” in favor of Obama’s health care plan which — unbeknownst to the public — was all being generated by someone who was receiving hundreds of thousands of dollars in secret from the administration (read this to see exactly how it worked).In other words, this arrangement was quite similar to the Armstrong Williams and Maggie Gallagher scandals which Democrats, in virtual lockstep, condemned.  Paul Krugman, for instance, in 2005 angrily lambasted right-wing pundits and policy analysts who received secret, undisclosed payments, and said they lack “intellectual integrity”; he specifically cited the Armstrong Williams case.  Yet the very same Paul Krugman last week attacked Marcy Wheeler for helping to uncover the Gruber payments by accusing her of being “just like the right-wingers with their endless supply of fake scandals.”  What is one key difference?  Unlike Williams and Gallagher, Jonathan Gruber is a Good, Well-Intentioned Person with Good Views — he favors health care — and so massive, undisclosed payments from the same administration he’s defending are dismissed as a “fake scandal.”
  • Sunstein himself — as part of his 2008 paper — explicitly advocates that the Government should pay what he calls “credible independent experts” to advocate on the Government’s behalf, a policy he says would be more effective because people don’t trust the Government itself and would only listen to people they believe are “independent.”  In so arguing, Sunstein cites the Armstrong Williams scandal not as something that is wrong in itself, but as a potential risk of this tactic (i.e., that it might leak out), and thus suggests that “government can supply these independent experts with information and perhaps prod them into action from behind the scenes,” but warns that “too close a connection will be self-defeating if it is exposed.”  In other words, Sunstein wants the Government to replicate the Armstrong Williams arrangement as a means of more credibly disseminating propaganda — i.e., pretending that someone is an “independent” expert when they’re actually being “prodded” and even paid “behind the scenes” by the Government — but he wants to be more careful about how the arrangement is described (don’t make the control explicit) so that embarrassment can be avoided if it ends up being exposed.  
  • In this 2008 paper, then, Sunstein advocated, in essence, exactly what the Obama administration has been doing all year with Gruber:  covertly paying people who can be falsely held up as “independent” analysts in order to more credibly promote the Government line.  Most Democrats agreed this was a deceitful and dangerous act when Bush did it, but with Obama and some of his supporters, undisclosed arrangements of this sort seem to be different.  Why?  Because, as Sunstein puts it:  we have “a well-motivated government” doing this so that “social welfare is improved.”  Thus, just like state secrets, indefinite detention, military commissions and covert, unauthorized wars, what was once deemed so pernicious during the Bush years — coordinated government/media propaganda — is instantaneously transformed into something Good.* * * * *What is most odious and revealing about Sunstein’s worldview is his condescending, self-loving belief that “false conspiracy theories” are largely the province of fringe, ignorant Internet masses and the Muslim world.  That, he claims, is where these conspiracy theories thrive most vibrantly, and he focuses on various 9/11 theories — both domestically and in Muslim countries — as his prime example.
  • It’s certainly true that one can easily find irrational conspiracy theories in those venues, but some of the most destructive “false conspiracy theories” have emanated from the very entity Sunstein wants to endow with covert propaganda power:  namely, the U.S. Government itself, along with its elite media defenders. Moreover, “crazy conspiracy theorist” has long been the favorite epithet of those same parties to discredit people trying to expose elite wrongdoing and corruption. Who is it who relentlessly spread “false conspiracy theories” of Saddam-engineered anthrax attacks and Iraq-created mushroom clouds and a Ba’athist/Al-Qaeda alliance — the most destructive conspiracy theories of the last generation?  And who is it who demonized as “conspiracy-mongers” people who warned that the U.S. Government was illegally spying on its citizens, systematically torturing people, attempting to establish permanent bases in the Middle East, or engineering massive bailout plans to transfer extreme wealth to the industries which own the Government?  The most chronic and dangerous purveyors of “conspiracy theory” games are the very people Sunstein thinks should be empowered to control our political debates through deceit and government resources:  namely, the Government itself and the Enlightened Elite like him.
  • It is this history of government deceit and wrongdoing that renders Sunstein’s desire to use covert propaganda to “undermine” anti-government speech so repugnant.  The reason conspiracy theories resonate so much is precisely that people have learned — rationally — to distrust government actions and statements.  Sunstein’s proposed covert propaganda scheme is a perfect illustration of why that is.  In other words, people don’t trust the Government and “conspiracy theories” are so pervasive precisely because government is typically filled with people like Cass Sunstein, who think that systematic deceit and government-sponsored manipulation are justified by their own Goodness and Superior Wisdom.
  • The point is that there are severe dangers to the Government covertly using its resources to “infiltrate” discussions and to shape political debates using undisclosed and manipulative means.  It’s called “covert propaganda” and it should be opposed regardless of who is in control of it or what its policy aims are. UPDATE II:  Ironically, this is the same administration that recently announced a new regulation dictating that “bloggers who review products must disclose any connection with advertisers, including, in most cases, the receipt of free products and whether or not they were paid in any way by advertisers, as occurs frequently.”  Without such disclosure, the administration reasoned, the public may not be aware of important hidden incentives (h/t pasquin).  Yet the same administration pays an MIT analyst hundreds of thousands of dollars to advocate their most controversial proposed program while they hold him out as “objective,” and selects as their Chief Regulator someone who wants government agents to covertly mold political discussions “anonymously or even with false identities.”
  • UPDATE III:  Just to get a sense for what an extremist Cass Sunstein is (which itself is ironic, given that his paper calls for ”cognitive infiltration of extremist groups,” as the Abstract puts it), marvel at this paragraph:
  • So Sunstein isn’t calling right now for proposals (1) and (2) — having Government ”ban conspiracy theorizing” or “impose some kind of tax on those who” do it — but he says “each will have a place under imaginable conditions.”  I’d love to know the “conditions” under which the government-enforced banning of conspiracy theories or the imposition of taxes on those who advocate them will “have a place.”  That would require, at a bare minumum, a repeal of the First Amendment.  Anyone who believes this should, for that reason alone, be barred from any meaningful government position.
  •  
    This is a January 2010 article by Glenn Greenwald. The Sunstein paper referred to was published in 2008 and is at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1084585  Sunstein left the Obama Administration in 2012 and now teaches law at Harvard. He is the husband of U.S. Ambassador to the U.N. Susan Rice,a notorious neocon.  His paper is scholarly only in format. His major premises have no citations and in at least two cases are straw man logical fallacies that misportray the position of the groups he criticizes. This is "academic" work that a first-year-law student heading for a 1.0 grade point average could make mincemeat of. This paper alone would seem to disqualify him from a Supreme Court nomination and from teaching law. Has he never heard of the First Amendment and why didn't he bother to check whether it is legal to inflict propaganda on the American public? But strange things happen when you're a buddy of an American president. Most noteworthy, however, is that the paper unquestionably puts an advocate of waging psychological warfare against the foreign populations *and* the American public as the head of the White House White House OMB Office of Information and Regulatory Affairs from 2008 through 2012 and on Obama's short list for the Supreme Court. Given the long history of U.S. destabilization of foreign nations via propaganda, of foreign wars waged under false pretenses, of the ongoing barrage of false information disseminated by our federal government, can there be any reasonable doubt that the American public is not being manipulated by false propaganda disseminated by their own government?  An inquiring mind wants to know ...   
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