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Paul Merrell

Quick facts: What you need to know about the Syria crisis | Mercy Corps - 0 views

  • Editor's note: This article was originally published on August 13, 2013; it was updated on August 29, 2014 to reflect the latest information. Syria’s civil war is the worst humanitarian disaster of our time. The number of innocent civilians suffering — more than nine million people are displaced, thus far — and the increasingly dire impact on neighboring countries can seem to overwhelming to understand.
  • Three years after it began, the full-blown civil war has killed over 190,000 people, half of whom are believed to be civilians. Bombings are destroying crowded cities and horrific human rights violations are widespread. Basic necessities like food and medical care are sparse. The U.N. estimates that over 6.5 million people are internally displaced — an increase of more than two million in just six months. When you also consider refugees, over half of the country’s pre-war population of 23 million is need urgent humanitarian assistance, whether they still remain in the country or have escaped across the borders.
  • Three million Syrians have registered with the United Nations High Commission of Refugees, who is leading the regional emergency response. But hundreds of thousands more await registration.
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  • Every year of the conflict has seen an exponential growth in refugees. In 2012, there were 100,000 refugees. By April 2013, there were 800,000. That doubled to 1.6 million in less than four months. There are now three million Syrians scattered throughout the region — an increasing number that will soon surpass Afghans as the world's largest refugee population. At this rate, the UN predicts there could be four million Syrian refugees by the end of this year — the worst exodus since the Rwandan genocide 20 years ago.
  • The lack of clean water and sanitation in crowded, makeshift settlements is an urgent concern. Diseases like cholera and polio can easily spread — even more life-threatening without enough medical services. In some areas with the largest refugee populations, water shortages have reached emergency levels; the supply is as low as 30 liters per person per day — one-tenth of what the average American uses.
  • According to the U.N., more than half of all Syrian refugees are under the age of 18. Most have been out of school for months, if not years.
  • In December 2013, the U.N. issued its largest ever appeal for a single crisis — according to their estimates, $6.5 billion is necessary to meet the needs of all those affected by the crisis, both inside and outside Syria, an increase from last year's $5 billion. Yet that previous appeal was only 62 percent funded.
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    The U.S. stated basis for supplying weapons and other aid to "moderate Syrian rebels" is humanitarian, that the Assad government is is a repressive government. Nonetheless, President Assad was recently overwhelmingly reelected by Syrian citizens. That fact and the recently updated statistics on this web page certainly put the lie to any "humanitarian" purpose on the part of U.S. government. So why is the U.S. doing this? It's because the U.S. Congress snaps to attention each time the Israeli government demands through the Israel Lobby in the U.S. that the U.S. shed more blood to destabilize and Balkanize Israel's neighbors. And because the radical Sunni dictatorships the U.S. props up on the Arab Gulf Coast push for war against Shia-majority nations in the region.  And it's because Barack Obama is willing to kill countless thousands of people for political reasons. We are ruled by cold-blooded murderers.
Paul Merrell

New Article Advocates for Consolidating Nuclear Complex - 0 views

  • This week Robert Alvarez published an article in the Bulletin of the Atomic Scientists about the National Nuclear Security Administration called "Rebranding the nuclear weapons complex won’t reform it." The piece details the long history of the Department of Energy’s management (and mismanagement) of the nuclear weapons complex, the establishment of the semi-autonomous NNSA, and the many conflicts of interest that have prevented the downsizing of the sprawling U.S. nuclear weapons complex. Alvarez also highlighted the astronomical costs associated with these facilities and recommended a truly independent commission, made up of specialists who do not have conflicts of interests, to review the complex:
  • Lab overcapacity, in particular, contributes to an inflated weapons complex cost structure, within which the average full time employee is two to three times as expensive as in the private sector. Since 2006, when management of the weapons labs was transferred from the nonprofit University of California to for-profit entities, administrative fees have jumped by 650 percent at Los Alamos. The bloat in the weapons complex is hardly limited to the national labs; the Y-12 nuclear weapons plant in Tennessee has excess capacity that is comparable, in size, to two auto assembly plants. The Obama administration should establish a commission—one, this time, that is not dominated by the very contractors that run the nuclear weapons complex—to analyze and downsize the redundant elements of that complex. The Defense Department accomplished such a downsizing over the past 20 years; it's long past time for the Energy Department to begin shedding its surplus capacity. Given that weapons facilities dominate the wage and benefit structures of large areas in several states, such streamlining will no doubt meet stiff congressional resistance. Still, the downsizing sword could eliminate redundant facilities and free up funding to rebuild those that are truly needed.
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    Those who argue for privatization *never* acknowledge that outsourcing government work invariably results in a strong vested interest lobby for spending even more. Here's a classic example of that. We've seen many other examples, e.g., the privatization of prisons resulting in the prison industry lobbying for lengthening prison sentences and creating new criminal prohibitions punishable by incarceration.   
Paul Merrell

Americans Want America To Run On Solar and Wind - 2 views

  • Americans “overwhelmingly” prefer solar and wind energy to coal, oil, and nuclear energy, according to a Harvard political scientist who has conducted a comprehensive survey of attitudes toward energy and climate for the last 12 years. Americans see natural gas as a bridge fuel that falls somewhere in between, offering some benefits over traditional fuels but more “harms” than solar and wind, said Harvard Government Professor Stephen Ansolabehere during a December appearance at the University of Chicago. “Americans want to move away from coal, oil and nuclear power and toward wind and solar,” said Ansolabehere, introduced as “the leading energy political scientist in the world” to climate scientists, physicists, economists and public-policy experts at The Energy Policy Institute of Chicago (EPIC). Ansolabehere described solar and wind energy as “hugely popular, overwhelmingly popular.”
  • So popular, in fact, that they easily cross the partisan divide that polarizes Americans on so many other issues. About 80 percent of Americans said they want solar and wind energy to “increase a lot,” and another 10 percent or so want it to increase somewhat. “In order to get 90 percent, that means a lot of Republicans like solar and wind—more than coal. Everybody likes those sources. This is non-partisan.”
  • Ansolabehere began surveying Americans on their energy preferences in 2001, when engineers and scientists at the Massachusetts Institute of Technology, including now-Energy Secretary Ernest Moniz, asked him to gauge public support for a plan to address climate change by building 300 new nuclear power plants. Ansolabehere found that even Americans who worry about climate change don’t support nuclear power. While such a result would not be surprising post-Fukushima, it surprised the engineers, who were envisioning a nuclear renaissance. “People who were concerned about global warming did not want the technology that they were going to put forward. For the engineers, this was a show stopper.” Ansolabehere’s findings might also be a show stopper for the Obama Administration’s “all-of-the-above” energy strategy.
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  • “There are very few conservationists, people who want to use less electricity overall,” he said. “There are also very few people who say all of the above, and this is an interesting note because I don’t know if you remember a few years ago the Obama administration decided this would be a good thing to campaign on, this all-of-the-above strategy. It might have been a good idea to placate West Virginia coal miners, but in fact there aren’t a lot of people who want all of the above in the energy sector.”
  • But Ansolabehere also found that Americans do not have a good grasp of the true cost of solar and wind, nor are they willing to shoulder that cost. They believe solar and wind are cheaper than nuclear power and oil, which they perceive to be the most expensive sources. “The average member of the American public has the picture about right,” he said. “People have the relative harms about right. People have the relative costs for traditional fuels about right. They’re way too optimistic about [the cost of] solar and wind, and the caution is that if you inform them, you’re going to get lower support.”
Paul Merrell

Oil surges 8 percent as U.S. rig count plunges, shorts scramble - Yahoo Finance - 0 views

  • EW YORK (Reuters) - Oil prices roared back from six-year lows on Friday, rocketing more than 8 percent as a record weekly decline in U.S. oil drilling fueled a frenzy of short-covering. In a rally that may spur speculation that a seven-month price collapse has ended, global benchmark Brent crude shot up to more than $53 per barrel, its highest in more than three weeks in its biggest one-day gain since 2009. The late-session surge was primed by Baker Hughes data showing the number of rigs drilling for oil in the United States fell by 94 - or 7 percent - this week. Earlier gains were fueled by reports of Islamic State militants striking at Kurdish forces southwest of the oil-rich city of Kirkuk.
  • Poised for a bounce many thought was overdue, short traders raced to cover their positions on fears that the rout, sparked by massive U.S. shale crude supplies, was nearing its end. "The rig count drop was a lot more than people expected and it really got the market going," said Phil Flynn, analyst at Price Futures Group in Chicago. According to Baker Hughes, the decline in oil drilling rigs was the most since it began keeping records in 1987. With drillers having idled about 24 percent of their oil drilling rigs since the summer, some traders may be betting that an anticipated slowdown in U.S. oil production is nearer than expected.
  • Some are not convinced that the sell-off in oil is over. The rout began in June when Brent peaked at over $115 a barrel and accelerated in November after OPEC refused to cut its production. "There was a lot of short-covering before the month end from people wanting to take profit from the $40-odd lows, so it's not surprising that we rallied," said Tariq Zahir, managing member at Tyche Capital Advisors in Laurel Hollow in New York. But it will take a while for production to respond to lower drilling. "This doesn't change the fundamental outlook in oil. We are still about 2 million barrels oversupplied." Production from OPEC, or the Organization of the Petroleum Exporting Countries, rose in January to 30.37 million barrels per day (bpd), a Reuters poll showed, a sign that key members of the group were resolute about defending their market share. A Reuters poll shows oil prices may post only a mild recovery in the second half of the year, with prices still averaging less in 2015 than during the global financial crisis. (OILPOLL) Joseph Posillico, senior vice president of energy futures at Jefferies in New York, also warned of a short-term, short-covering rally that could be quickly reversed. "This is just the market being the market and we could give these all back in the next few sessions."
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    More indication that the economic oil bubble is bursting. 
Paul Merrell

IMF Loans to Ukraine: Deadly "Economic Medicine" Aimed at Total Destabilization | Globa... - 0 views

  • On February 12, Christine Lagarde, Managing Director of the International Monetary Fund, announced that the IMF had reached an agreement with the Ukrainian government on a new economic reform program. Ms Lagarde’s statement, made in Brussels, came only minutes after peace negotiations between the heads of the German, French, Russian und Ukrainian governments in Minsk, Belarus, had ended. The timing was no coincidence. Washington had been left out of the negotiations and now reacted by sending its most powerful financial organization to the forefront in order to deliver a clear message to the world: that the US will not loosen its grip on the Ukraine, if not by sending weapons, then at least economically and financially.
  • The loans will be based on the terms of an economic program for Ukraine for 2015 – 2020, passed by the Kiev parliament in December 2014, and are tied to harsh conditions laid down in a letter of intent, signed by prime minister Yatseniuk and president Poroshenko in August 2014. Some of the measures have already been implemented, others will follow. Among those already in force is the flexible exchange rate regime which has not only led to a 67% devaluation of the hrivna, lowering the average monthly wage of Ukrainian workers to less than $ 60, but has also opened the doors for international currency speculators who have already made millions by indebting themselves in hrivnia and repaying their debts in euros and dollars. The rate of inflation, running at 25 % in 2014 and expected to rise even higher in 2015, and a hike in gas prices by 50 % in May 2014 made survival almost impossible for the weakest 20 % of the population who already lived below the poverty line in 2013. Among the measures still to come are the layoff of 10 % of the country’s public employees and the partial privatization of health care and education. The retirement age for women is to be raised by 10 years, that for men by 5 years, most benefits for old age pensioners are to be abolished, the pharmaceuticals market is to be deregulated. Retirement pensions will be frozen, and there will be no more free lunches for school children and patients in hospitals. Benefits for victims of the 1986 nuclear disaster in Chernobyl are to be cut, and the boundaries of the officially designated radioactive hazard zone will be revised. The country’s monthly minimum wage is to remain at 1,218.00 hrivna ($ 46 at the current rate of exchange) until at least November 2015.
Paul Merrell

European Lawmakers Demand Answers on Phone Key Theft - The Intercept - 0 views

  • European officials are demanding answers and investigations into a joint U.S. and U.K. hack of the world’s largest manufacturer of mobile SIM cards, following a report published by The Intercept Thursday. The report, based on leaked documents provided by NSA whistleblower Edward Snowden, revealed the U.S. spy agency and its British counterpart Government Communications Headquarters, GCHQ, hacked the Franco-Dutch digital security giant Gemalto in a sophisticated heist of encrypted cell-phone keys. The European Parliament’s chief negotiator on the European Union’s data protection law, Jan Philipp Albrecht, said the hack was “obviously based on some illegal activities.” “Member states like the U.K. are frankly not respecting the [law of the] Netherlands and partner states,” Albrecht told the Wall Street Journal. Sophie in ’t Veld, an EU parliamentarian with D66, the Netherlands’ largest opposition party, added, “Year after year we have heard about cowboy practices of secret services, but governments did nothing and kept quiet […] In fact, those very same governments push for ever-more surveillance capabilities, while it remains unclear how effective these practices are.”
  • “If the average IT whizzkid breaks into a company system, he’ll end up behind bars,” In ’t Veld added in a tweet Friday. The EU itself is barred from undertaking such investigations, leaving individual countries responsible for looking into cases that impact their national security matters. “We even get letters from the U.K. government saying we shouldn’t deal with these issues because it’s their own issue of national security,” Albrecht said. Still, lawmakers in the Netherlands are seeking investigations. Gerard Schouw, a Dutch member of parliament, also with the D66 party, has called on Ronald Plasterk, the Dutch minister of the interior, to answer questions before parliament. On Tuesday, the Dutch parliament will debate Schouw’s request. Additionally, European legal experts tell The Intercept, public prosecutors in EU member states that are both party to the Cybercrime Convention, which prohibits computer hacking, and home to Gemalto subsidiaries could pursue investigations into the breach of the company’s systems.
  • According to secret documents from 2010 and 2011, a joint NSA-GCHQ unit penetrated Gemalto’s internal networks and infiltrated the private communications of its employees in order to steal encryption keys, embedded on tiny SIM cards, which are used to protect the privacy of cellphone communications across the world. Gemalto produces some 2 billion SIM cards a year. The company’s clients include AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers. “[We] believe we have their entire network,” GCHQ boasted in a leaked slide, referring to the Gemalto heist.
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  • While Gemalto was indeed another casualty in Western governments’ sweeping effort to gather as much global intelligence advantage as possible, the leaked documents make clear that the company was specifically targeted. According to the materials published Thursday, GCHQ used a specific codename — DAPINO GAMMA — to refer to the operations against Gemalto. The spies also actively penetrated the email and social media accounts of Gemalto employees across the world in an effort to steal the company’s encryption keys. Evidence of the Gemalto breach rattled the digital security community. “Almost everyone in the world carries cell phones and this is an unprecedented mass attack on the privacy of citizens worldwide,” said Greg Nojeim, senior counsel at the Center for Democracy & Technology, a non-profit that advocates for digital privacy and free online expression. “While there is certainly value in targeted surveillance of cell phone communications, this coordinated subversion of the trusted technical security infrastructure of cell phones means the US and British governments now have easy access to our mobile communications.”
  • For Gemalto, evidence that their vaunted security systems and the privacy of customers had been compromised by the world’s top spy agencies made an immediate financial impact. The company’s shares took a dive on the Paris bourse Friday, falling $500 million. In the U.S., Gemalto’s shares fell as much 10 percent Friday morning. They had recovered somewhat — down 4 percent — by the close of trading on the Euronext stock exchange. Analysts at Dutch financial services company Rabobank speculated in a research note that Gemalto could be forced to recall “a large number” of SIM cards. The French daily L’Express noted today that Gemalto board member Alex Mandl was a founding trustee of the CIA-funded venture capital firm In-Q-Tel. Mandl resigned from In-Q-Tel’s board in 2002, when he was appointed CEO of Gemplus, which later merged with another company to become Gemalto. But the CIA connection still dogged Mandl, with the French press regularly insinuating that American spies could infiltrate the company. In 2003, a group of French lawmakers tried unsuccessfully to create a commission to investigate Gemplus’s ties to the CIA and its implications for the security of SIM cards. Mandl, an Austrian-American businessman who was once a top executive at AT&T, has denied that he had any relationship with the CIA beyond In-Q-Tel. In 2002, he said he did not even have a security clearance.
  • AT&T, T-Mobile and Verizon could not be reached for comment Friday. Sprint declined to comment. Vodafone, the world’s second largest telecom provider by subscribers and a customer of Gemalto, said in a statement, “[W]e have no further details of these allegations which are industrywide in nature and are not focused on any one mobile operator. We will support industry bodies and Gemalto in their investigations.” Deutsche Telekom AG, a German company, said it has changed encryption algorithms in its Gemalto SIM cards. “We currently have no knowledge that this additional protection mechanism has been compromised,” the company said in a statement. “However, we cannot rule out this completely.”
  • Update: Asked about the SIM card heist, White House press secretary Josh Earnest said he did not expect the news would hurt relations with the tech industry: “It’s hard for me to imagine that there are a lot of technology executives that are out there that are in a position of saying that they hope that people who wish harm to this country will be able to use their technology to do so. So, I do think in fact that there are opportunities for the private sector and the federal government to coordinate and to cooperate on these efforts, both to keep the country safe, but also to protect our civil liberties.”
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    Watch for massive class action product defect litigation to be filed against the phone companies.and mobile device manufacturers.  In most U.S. jurisdictions, proof that the vendors/manufacturers  knew of the product defect is not required, only proof of the defect. Also, this is a golden opportunity for anyone who wants to get out of a pricey cellphone contract, since providing a compromised cellphone is a material breach of warranty, whether explicit or implied..   
Paul Merrell

Netanyahu to be probed over public cash abuses | Middle East Eye - 0 views

  • A damning report by the State Comptroller said that Netanyahu spent up to $230,000 on cleaning fees in 2011 alone
  • Israeli Prime Minister Benjamin Netanyahu is to be probed over allegations of fiscal misconduct at his private and official residence. Israeli Attorney General Yehuda Weinstein on Thursday ordered a preliminary investigation, which will determine whether or not a criminal investigation will eventually be launched to deal with the misdemeanours. However, the attorney general has stressed that at this stage the investigations are not focusing in on the prime minister personally and noted that the probe will not begin before the election on 17 March where Netanyahu is vying for re-election.  
  • The announcement follows a scathing report by the State Comptroller, which queried huge sums spent on cleaning, makeup and clothing between 2009 and 2013. The long-awaited report by Yosef Shapira, who reviews how the Israeli government operates, unearthed that at their highest point in 2011, cleaning expenses for one of Netanyahu’s homes cost the Israeli taxpayer almost $285,000. Netanyahu and the First Lady only spend the occasional weekend there, but monthly cleaning costs for the house averaged more than $2,100 over the four-year period, the report found. The document also queried a large amount of electrical work carried out at the private residence by a personal friend of the Netanyahu's. “In light of the large cleaning costs, the [Prime Minister’s Office] should examine...their prudence and act to avoid unnecessary expenditures," Shapiro wrote in the report.
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  • Netanyahu, his wife Sara, and their allegedly lavish lifestyles have taken centre stage in the elections so far with the opposition Zionist Union camp largely taking aim at the couple and their various misdemeanours. Claims that Sara pocket profits from a bottle recycling scheme, nicknamed bottlegate, and old allegations that she abuses her staff have all been making the rounds in the press. However, Netanyahu’s upcoming speech to US Congress has attracted growing furore.
Paul Merrell

No, Obama, Russia's Economy Isn't 'in Tatters' - Bloomberg View - 0 views

  • Western politicians and pundits should be more careful with their predictions for the Russian economy: Reports of its demise may prove to be premature. Bashing the Russian economy has lately become a popular pastime. In his state of the nation address last month, U.S. President Barack Obama said it was "in tatters." And yesterday, Anders Aslund of the Peterson Institute for International Economics published an article predicting a 10 percent drop in gross domestic product this year -- more or less in line with the apocalyptic predictions that prevailed when the oil price reached its nadir late last year and the ruble was in free fall. Aslund's forecast focuses on Russia's shrinking currency reserves, some of which have been earmarked for supporting government spending in difficult times. At $364.6 billion, they are down 26 percent from a year ago and $21.6 billion from the beginning of this year. Aslund expects $166 billion to be spent on infrastructure investments and bailing out companies, and another $100 billion to exit via capital flight and other currency outflows. As a result, given foreign debts of almost $600 billion, "Russia's reserve situation is approaching a critical limit," he says.
  • What this argument ignores is that Russia's foreign debts are declining along with its reserves -- that's what happens when the money is used to pay down state companies' obligations. Last year, for example, the combined foreign liabilities of the Russian government and companies dropped by $129.4 billion, compared with a $124.3 billion decline in foreign reserves. Beyond that, a large portion of Russian companies' remaining foreign debt is really part of a tax-evasion scheme: By lending themselves money from abroad, the companies transfer profits to lower-tax jurisdictions. Such loans can easily be extended if sanctions prevent the Russian side from paying. The declining price of oil is also less of a threat than many have warned. True, the Russian government's revenues from energy exports will fall in dollar terms. But because Russia's central bank has allowed the ruble's value against the dollar to decline, the ruble value of the revenues will be higher than they otherwise would be. As a result, Russia no longer requires $100 oil to balance its budget -- and the effect of lower oil prices on the broader economy will be muted.
  • Economists at the respected Gaidar Institute, for example, expect the floating of the ruble to roughly halve the negative GDP impact of the decline in oil prices. They estimate that Russian GDP will shrink by a moderate 2.7 percent this year, even if Brent oil trades at $40 (it traded at $61 today). That's just a bit more optimistic than the consensus among 39 economists polled by Bloomberg between Feb. 20 and Feb. 25: On average, they see a decline of 4 percent. Economic sanctions, which most forecasts assume will continue this year, are having less impact that many in the West would like to believe. Sergei Tsukhlo of the Gaidar Institute estimates that the sanctions have affected only 6 percent of Russian industrial enterprises. "Their effect remains quite insignificant despite all that's being said about them," he wrote, noting that trade disruptions with Ukraine have been more important.
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  • Granted, there's no avoiding a significant drop in Russians' living standards because of accelerating inflation. The economics ministry in Moscow predicts real wages will fall by 9 percent this year -- which, Aslund wrote, means that "for the first time after 15 years in power," Russian President Vladimir Putin "will have to face a majority of the Russian people experiencing a sharply declining standard of living." So far, though, Russians have taken the initial shock of devaluation and accompanying inflation largely in stride. The latest poll from the independent Levada Center, conducted between Feb. 20 and Feb. 23, actually shows an uptick in Putin's approval rating -- to 86 percent from 85 percent in January.  It's time to bury the expectation that Russia will fall apart economically under pressure from falling oil prices and economic sanctions, and that Russians, angered by a drop in their living standards, will rise up and sweep Putin out of office. Western powers face a tough choice: Settle for a lengthy siege and ratchet up the sanctions despite the progress in Ukraine, or start looking for ways to restart dialogue with Russia, a country that just won't go away.
Paul Merrell

Most Agencies Falling Short on Mandate for Online Records - 0 views

  • Nearly 20 years after Congress passed the Electronic Freedom of Information Act Amendments (E-FOIA), only 40 percent of agencies have followed the law's instruction for systematic posting of records released through FOIA in their electronic reading rooms, according to a new FOIA Audit released today by the National Security Archive at www.nsarchive.org to mark Sunshine Week. The Archive team audited all federal agencies with Chief FOIA Officers as well as agency components that handle more than 500 FOIA requests a year — 165 federal offices in all — and found only 67 with online libraries populated with significant numbers of released FOIA documents and regularly updated.
  • Congress called on agencies to embrace disclosure and the digital era nearly two decades ago, with the passage of the 1996 "E-FOIA" amendments. The law mandated that agencies post key sets of records online, provide citizens with detailed guidance on making FOIA requests, and use new information technology to post online proactively records of significant public interest, including those already processed in response to FOIA requests and "likely to become the subject of subsequent requests." Congress believed then, and openness advocates know now, that this kind of proactive disclosure, publishing online the results of FOIA requests as well as agency records that might be requested in the future, is the only tenable solution to FOIA backlogs and delays. Thus the National Security Archive chose to focus on the e-reading rooms of agencies in its latest audit. Even though the majority of federal agencies have not yet embraced proactive disclosure of their FOIA releases, the Archive E-FOIA Audit did find that some real "E-Stars" exist within the federal government, serving as examples to lagging agencies that technology can be harnessed to create state-of-the art FOIA platforms. Unfortunately, our audit also found "E-Delinquents" whose abysmal web performance recalls the teletype era.
  • E-Delinquents include the Office of Science and Technology Policy at the White House, which, despite being mandated to advise the President on technology policy, does not embrace 21st century practices by posting any frequently requested records online. Another E-Delinquent, the Drug Enforcement Administration, insults its website's viewers by claiming that it "does not maintain records appropriate for FOIA Library at this time."
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  • "The presumption of openness requires the presumption of posting," said Archive director Tom Blanton. "For the new generation, if it's not online, it does not exist." The National Security Archive has conducted fourteen FOIA Audits since 2002. Modeled after the California Sunshine Survey and subsequent state "FOI Audits," the Archive's FOIA Audits use open-government laws to test whether or not agencies are obeying those same laws. Recommendations from previous Archive FOIA Audits have led directly to laws and executive orders which have: set explicit customer service guidelines, mandated FOIA backlog reduction, assigned individualized FOIA tracking numbers, forced agencies to report the average number of days needed to process requests, and revealed the (often embarrassing) ages of the oldest pending FOIA requests. The surveys include:
  • The federal government has made some progress moving into the digital era. The National Security Archive's last E-FOIA Audit in 2007, " File Not Found," reported that only one in five federal agencies had put online all of the specific requirements mentioned in the E-FOIA amendments, such as guidance on making requests, contact information, and processing regulations. The new E-FOIA Audit finds the number of agencies that have checked those boxes is now much higher — 100 out of 165 — though many (66 in 165) have posted just the bare minimum, especially when posting FOIA responses. An additional 33 agencies even now do not post these types of records at all, clearly thwarting the law's intent.
  • The FOIAonline Members (Department of Commerce, Environmental Protection Agency, Federal Labor Relations Authority, Merit Systems Protection Board, National Archives and Records Administration, Pension Benefit Guaranty Corporation, Department of the Navy, General Services Administration, Small Business Administration, U.S. Citizenship and Immigration Services, and Federal Communications Commission) won their "E-Star" by making past requests and releases searchable via FOIAonline. FOIAonline also allows users to submit their FOIA requests digitally.
  • THE E-DELINQUENTS: WORST OVERALL AGENCIES In alphabetical order
  • Key Findings
  • Excuses Agencies Give for Poor E-Performance
  • Justice Department guidance undermines the statute. Currently, the FOIA stipulates that documents "likely to become the subject of subsequent requests" must be posted by agencies somewhere in their electronic reading rooms. The Department of Justice's Office of Information Policy defines these records as "frequently requested records… or those which have been released three or more times to FOIA requesters." Of course, it is time-consuming for agencies to develop a system that keeps track of how often a record has been released, which is in part why agencies rarely do so and are often in breach of the law. Troublingly, both the current House and Senate FOIA bills include language that codifies the instructions from the Department of Justice. The National Security Archive believes the addition of this "three or more times" language actually harms the intent of the Freedom of Information Act as it will give agencies an easy excuse ("not requested three times yet!") not to proactively post documents that agency FOIA offices have already spent time, money, and energy processing. We have formally suggested alternate language requiring that agencies generally post "all records, regardless of form or format that have been released in response to a FOIA request."
  • Disabilities Compliance. Despite the E-FOIA Act, many government agencies do not embrace the idea of posting their FOIA responses online. The most common reason agencies give is that it is difficult to post documents in a format that complies with the Americans with Disabilities Act, also referred to as being "508 compliant," and the 1998 Amendments to the Rehabilitation Act that require federal agencies "to make their electronic and information technology (EIT) accessible to people with disabilities." E-Star agencies, however, have proven that 508 compliance is no barrier when the agency has a will to post. All documents posted on FOIAonline are 508 compliant, as are the documents posted by the Department of Defense and the Department of State. In fact, every document created electronically by the US government after 1998 should already be 508 compliant. Even old paper records that are scanned to be processed through FOIA can be made 508 compliant with just a few clicks in Adobe Acrobat, according to this Department of Homeland Security guide (essentially OCRing the text, and including information about where non-textual fields appear). Even if agencies are insistent it is too difficult to OCR older documents that were scanned from paper, they cannot use that excuse with digital records.
  • Privacy. Another commonly articulated concern about posting FOIA releases online is that doing so could inadvertently disclose private information from "first person" FOIA requests. This is a valid concern, and this subset of FOIA requests should not be posted online. (The Justice Department identified "first party" requester rights in 1989. Essentially agencies cannot use the b(6) privacy exemption to redact information if a person requests it for him or herself. An example of a "first person" FOIA would be a person's request for his own immigration file.) Cost and Waste of Resources. There is also a belief that there is little public interest in the majority of FOIA requests processed, and hence it is a waste of resources to post them. This thinking runs counter to the governing principle of the Freedom of Information Act: that government information belongs to US citizens, not US agencies. As such, the reason that a person requests information is immaterial as the agency processes the request; the "interest factor" of a document should also be immaterial when an agency is required to post it online. Some think that posting FOIA releases online is not cost effective. In fact, the opposite is true. It's not cost effective to spend tens (or hundreds) of person hours to search for, review, and redact FOIA requests only to mail it to the requester and have them slip it into their desk drawer and forget about it. That is a waste of resources. The released document should be posted online for any interested party to utilize. This will only become easier as FOIA processing systems evolve to automatically post the documents they track. The State Department earned its "E-Star" status demonstrating this very principle, and spent no new funds and did not hire contractors to build its Electronic Reading Room, instead it built a self-sustaining platform that will save the agency time and money going forward.
Paul Merrell

US sets new record for denying federal files under Freedom of Information Act | US news... - 0 views

  • The US has set a new record for denying and censoring federal files under the Freedom of Information Act, analysis by the Associated Press reveals. For the second consecutive year, the Obama administration more often than ever censored government files or outright denied access to them under the open-government legislation. The government took longer to turn over files when it provided any, said more regularly that it couldn’t find documents, and refused a record number of times to turn over files quickly that might be especially newsworthy.
  • It also acknowledged in nearly one in three cases that its initial decisions to withhold or censor records were improper under the law – but only when it was challenged. Its backlog of unanswered requests at year’s end grew remarkably by 55% to more than 200,000. The government’s new figures, published Tuesday, covered all requests to 100 federal agencies during fiscal 2014 under the Freedom of Information law, which is heralded globally as a model for transparent government. They showed that despite disappointments and failed promises by the White House to make meaningful improvements in the way it releases records, the law was more popular than ever. Citizens, journalists, businesses and others made a record 714,231 requests for information. The US spent a record $434m trying to keep up.
  • The government responded to 647,142 requests, a 4% decrease over the previous year. The government more than ever censored materials it turned over or fully denied access to them, in 250,581 cases or 39% of all requests. Sometimes, the government censored only a few words or an employee’s phone number, but other times it completely marked out nearly every paragraph on pages. On 215,584 other occasions, the government said it couldn’t find records, a person refused to pay for copies or the government determined the request to be unreasonable or improper. The White House touted its success under its own analysis. It routinely excludes from its assessment instances when it couldn’t find records, a person refused to pay for copies or the request was determined to be improper under the law, and said under this calculation it released all or parts of records in 91% of requests – still a record low since Barack Obama took office using the White House’s own math.
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  • “We actually do have a lot to brag about,” White House spokesman Josh Earnest said. The government’s responsiveness under the open records law is an important measure of its transparency. Under the law, citizens and foreigners can compel the government to turn over copies of federal records for zero or little cost. Anyone who seeks information through the law is generally supposed to get it unless disclosure would hurt national security, violate personal privacy or expose business secrets or confidential decision-making in certain areas. It cited such exceptions a record 554,969 times last year. Under the president’s instructions, the US should not withhold or censor government files merely because they might be embarrassing, but federal employees last year regularly misapplied the law. In emails that AP obtained from the National Archives and Records Administration about who pays for Michelle Obama’s expensive dresses, the agency blacked-out a sentence under part of the law intended to shield personal, private information, such as Social Security numbers, phone numbers or home addresses. But it failed to censor the same passage on a subsequent page.
  • The sentence: “We live in constant fear of upsetting the WH [White House].” In nearly one in three cases, when someone challenged under appeal the administration’s initial decision to censor or withhold files, the government reconsidered and acknowledged it was at least partly wrong. That was the highest reversal rate in at least five years. The AP’s chief executive, Gary Pruitt, said the news organization filed hundreds of requests for government files. Records the AP obtained revealed police efforts to restrict airspace to keep away news helicopters during violent street protests in Ferguson, Missouri. In another case, the records showed Veterans Affairs doctors concluding that a gunman who later killed 12 people had no mental health issues despite serious problems and encounters with police during the same period. They also showed the FBI pressuring local police agencies to keep details secret about a telephone surveillance device called Stingray.
  • “What we discovered reaffirmed what we have seen all too frequently in recent years,” Pruitt wrote in a column published this week. “The systems created to give citizens information about their government are badly broken and getting worse all the time.” The US released its new figures during Sunshine Week, when news organizations promote open government and freedom of information. The AP earlier this month sued the State Department under the law to force the release of email correspondence and government documents from Hillary Clinton’s tenure as secretary of state. The government had failed to turn over the files under repeated requests, including one made five years ago and others pending since the summer of 2013.
  • The government said the average time it took to answer each records request ranged from one day to more than 2.5 years. More than half of federal agencies took longer to answer requests last year than the previous year. Journalists and others who need information quickly to report breaking news fared worse than ever. Under the law, the US is required to move urgent requests from journalists to the front of the line for a speedy answer if records will inform the public concerning an actual or alleged government activity. But the government now routinely denies such requests: Over six years, the number of requests granted speedy processing status fell from nearly half to fewer than one in eight. The CIA, at the center of so many headlines, has denied every such request over the last two years.
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    I did a fair bit of FOIA litigation during my years as a citizen activist and later as a lawyer. The response situation never was good and it's gotten far worse. I have an outstanding FOIA request to the Dept. of Health & Human Services for copies of particular documents submitted as public comments by other agencies including the CIA in a rulemaking proceeding. I submitted electronically over a year ago, got an authresponder telling me to expect a postcard acknowledging receipt within ten working days as required by FOIA. Didn't hear back from them, so resubmitted with copies of the original request and the autoresponse and got the same autoresponse. Still haven't got either of my postcards or the records, so it looks like I'm about to come out of retirement and file a FOIA lawsuit. It's an area where the squeakiest wheel gets the grease.  The bureaucracy does not like public records requests.   
Paul Merrell

18 Signs That The Global Economic Crisis Is Accelerating As We Enter The Last Half Of 2014 - 0 views

  • #1 The Bank for International Settlements has issued a new report which warns that "dangerous new asset bubbles" are forming which could potentially lead to another major financial crisis.  Do the central bankers know something that we don't, or are they just trying to place the blame on someone else for the giant mess that they have created? #2 Argentina has missed a $539 million debt payment and is on the verge of its second major debt default in 13 years. #3 Bulgaria is desperately trying to calm down a massive run on the banks that threatens of spiral out of control. #4 Last month, household loans in the eurozone declined at the fastest rate ever recorded.  Why are European banks holding on to their money so tightly right now? #5 The number of unemployed jobseekers in France has just soared to another brand new record high.
  • #6 Economies all over Europe are either showing no growth or are shrinking.  Just check out what a recent Forbes article had to say about the matter... Italy’s economy shrank by 0.1% in the first three months of 2014, matching the average of the three previous quarters. After expanding 0.6% in Q2 2013, France recorded zero growth. Portugal shrank 0.7%, following positive numbers in the preceding nine months. While figures weren’t available for Greece and Ireland in Q1, neither country is showing progress. Greek GDP dropped 2.5% in the final three months of last year, and Ireland limped ahead at 0.2%. #7 A few days ago it was reported that consumer prices in Japan are rising at the fastest pace in 32 years.
  • #8 Household expenditures in Japan are down 8 percent compared to one year ago. #9 U.S. companies are drowning in massive amounts of debt, but the corporate debt bubble in China is so bad that the amount of corporate debt in China has actually now surpassed the amount of corporate debt in the United States. #10 One Chinese auditor is warning that up to 80 billion dollars worth of loans in China are backed by falsified gold transactions.  What will that do to the price of gold and the stability of Chinese financial markets as that mess unwinds? #11 The unemployment rate in Greece is currently sitting at 26.7 percent and the youth unemployment rate is 56.8 percent.
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  • #12 67.5 percent of the people that are unemployed in Greece have been unemployed for over a year. #13 The unemployment rate in the eurozone as a whole is 11.8 percent - just a little bit shy of the all-time record of 12.0 percent. #14 The European Central Bank is so desperate to get money moving through the system that it has actually introduced negative interest rates. #15 The IMF is projecting that there is a 25 percent chance that the eurozone will slip into deflation by the end of next year. #16 The World Bank is warning that "now is the time to prepare" for the next crisis. #17 The economic conflict between the United States and Russia continues to deepen.  This has caused Russia to make a series of moves away from the U.S. dollar and toward other major currencies.  This will have serious ramifications for the global financial system as time rolls along.
  • #18 Of course the U.S. economy is struggling right now as well.  It shrank at a 2.9 percent annual rate during the first quarter of 2014, which was much worse than anyone had anticipated.
Paul Merrell

U.S. expands secret facility in Iraq - Pittsburgh Post-Gazette - 0 views

  • IRBIL, Iraq — A supposedly secret but locally well-known CIA station on the outskirts of Irbil’s airport is undergoing rapid expansion as the United States considers whether to engage in a war against Islamist militants who have seized control of half of Iraq in the past month. Western contractors hired to expand the facility and a local intelligence official confirmed the construction project, which is visible from the main highway linking Irbil to Mosul, the city whose fall June 9 triggered the Islamic State’s sweep through northern and central Iraq. Residents around the airport say they can hear daily what they suspect are U.S. drones taking off and landing at the facility. Expansion of the facility comes as it seems all but certain that the autonomous Kurdish regional government and the central government in Baghdad, never easy partners, are headed for an irrevocable split — complicating any U.S. military hopes of coordinating the two entities’ efforts against the Islamic State.
  • Overnight, Kurdish troops seized oil fields operated by Iraq’s Northern Oil Co., whose exports had been controlled by the central government, “These two are among the main wells producing oil in Iraq,” said Assam Jihad, the Oil Ministry spokesman. “They are the spine of Iraq’s oil wealth and produce 400,000 barrels a day.” Oil industry publications said they had produced a little less than half that in recent months, but nonetheless represent a significant share of Iraq’s oil production. In 2012, Iraq produced on average of 3 million barrels of oil per day, according to the Organization of Petroleum Exporting Countries. “Half of this production goes to the local market, and the other half goes for export,” said Mr. Jihad, criticizing the Kurds’ seizure of the field as a “constitutional breach” and “violation of Iraq’s sovereignty.”
  • The developments all come as the United States, which has said it won’t come to Iraq’s assistance unless Mr. Maliki takes steps to make his government more inclusive, is expected to announce early next week its assessment of the military situation in the country. Pentagon officials said the assessment might be made public as soon as Monday. But U.S. officials have known for some time that it was likely that they would need to coordinate any steps taken in Baghdad and in Irbil, where the peshmerga has worked closely over the years with the CIA, U.S. special forces and the Joint Special Operations Command, the military’s most secretive task force, which has become a bulwark of counterterrorism operations. Peshmerga forces already are manning checkpoints and bunkers to protect the facility, which sits just a few hundred yards from the highway.
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  • Other contractors who deal extensively with moving heavy equipment through Irbil’s airport, which has supported a rapidly expanding oil and gas drilling industry, said they were aware of the expansion. One British oil executive said he’d detected a “low-key but steady stream of men, equipment and supplies for an obvious expansion of the facility.” The local Kurdish intelligence official described what was taking place as a “long-term relationship with the Americans.” In a statement July 3, U.S. Secretary of Defense Chuck Hagel announced that Irbil would host such a center, in addition to one being set up in Baghdad, and suggested that it had already begun operating. “We have personnel on the ground in Irbil, where our second joint operations center has achieved initial operating capability,” he said then.
  • “It’s no secret that the American special forces and CIA have a close relationship with the peshmerga,” said the Kurdish official, who spoke only on condition of anonymity because he was discussing covert military operations. He added that the facility had operated even “after the Americans were forced out of Iraq by Maliki,” a reference to the 2011 U.S. troop withdrawal after the Obama administration and the Iraqi government couldn’t agree on a framework for U.S. forces remaining in the country. The official refused to directly identify the location of the facility but when he was shown the blurred-out location on an online satellite-mapping service he joked, “The peshmerga do not have the influence to make Google blur an area on these maps. I will leave the rest to your conclusions.”
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    Two CIA drone bases in Iraq; what could be wrong with that? Remember that CIA staff and contractors, being civilians, aren't included in the head count of American boots on the ground. And the CIA is rather notorious these days for operating drones that kill, not the observation drones that the Pentagon said it would be flying over Iraq.  Smells like Obama has decided to run a hot war in Iraq, at least of the covert variety. 
Paul Merrell

Lessons from Tonkin « LobeLog.com - 0 views

  • Exactly 50 years ago today, I was working in the Lyndon Johnson White House, on the domestic side — mostly on education and other aspects of the Great Society, as deputy to Douglass Cater, one of the giants of the trade. I was 24, though with two years of foreign policy under my belt, as a Fulbright Scholar at the London School of Economics. I cite my tyro status only as partial exculpation for not foretelling the tragedy that was about to ensue for the United States as it became more deeply embroiled in a conflict, to borrow from Neville Chamberlain, “in a far-away country between peoples of whom we know nothing.” A half-century ago, I read in my White House office the press release just put out by the White House that spoke of an attack by North Vietnam on two US destroyers, the Maddox and the Turner Joy, in a place called the Tonkin Gulf. From that point on, to use a common but in retrospect bitter phrase, “we were off to the races.” The Tonkin Gulf Resolution — technically the Southeast Asia Resolution — followed, and the US became mired in a conflict the purposes of which are still being debated. But as a White House staff person with top-secret security clearance, I had an advantage over the average American. Rummaging through the files after I joined the staff in July 1964, I came across a draft that had been sitting there for some time which, with emendations, became — you guessed it — the Tonkin Gulf Resolution. Ready to be used, just waiting for an “incident” to set it in motion.
  • It is now generally understood that the “attack” on the two US destroyers was likely a radar blip and the “fog-of-not-quite-war,” and that, in any event, the US had been engaged in provocative naval actions against North Vietnam.
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    Adds to the historical record the new fact that what became the Gulf of Tonkin Resolution had been drafted long before the incident. 
Paul Merrell

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

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

Currency Wars - Russia Buys 20.7 Tonnes Of Gold In December; Netherlands Refutes IMF Go... - 0 views

  • Russia raised its gold reserves for a ninth straight month in December as the country continued its multi month gold buying spree, adding to the fifth-biggest gold holdings in the world, data from the IMF showed yesterday.  Russia continues to dollar cost average into gold and increased its bullion holdings by another hefty 20.73 tonnes to 1,208.23 tonnes in December. The December figure for Russia, who have the fifth largest reserves in the world, brings their officially stated reserves to 1208.23 tonnes. If this trend were to continue their officially stated reserves would increase 20.6% this year.
  • Given that Russia perceives itself to be under financial and economic attack from the West, there is the possibility that they are accumulating more gold than they are declaring officially to the IMF. This is what the People’s Bank of China (PBOC) has been doing in recent years and there is little reason why Russia may not adopt the Chinese practice of not being transparent in this regard. The Chinese government have been surreptitiously accumulating vast quantities of the metal in recent years and there is no reason to believe this buying will end in the coming months as geopolitical and monetary risks intensify. Western central banks seem to be balking at what will be seen as the disastrous policy of dumping the gold owned by their populations onto the market. The Gold Anti Trust Action Committee (GATA) have documented how this was done in order to suppress gold prices, in a bid to support and maintain faith in the dollar as reserve currency. Already there are strong movements across Europe to have sovereign gold stored domestically. The German and Dutch central banks have recently reported the repatriation of large volumes of their gold being held by central banks of foreign nations.
Paul Merrell

Controversies - Insurance Industry Adjusts to Earthquake Risk Caused by Fracking - AllG... - 0 views

  • In another sign that fracking is increasingly being acknowledged as a cause of earthquakes, the insurance industry has announced that it is now linking the controversial drilling procedure with seismic activity in establishing its rates. Before insurance companies set their rates for an upcoming year, they turn to the U.S. Geological Survey (USGS) for information on quake activity. Specifically, insurers look at the USGS’s National Seismic Hazard Map, which “predicts where future earthquakes will occur, how often they will occur and how strongly they will shake the ground,” according to the Dallas Morning News. But this map will now take into account earthquakes that occur within the vicinity of fracking wells, the USGS has decided. That means insurance rates may go up in some areas considered more at risk of seismic events because of fracking operations. Between the years 2010 and 2013, central and eastern United States had an average of five times as many quakes per year as between 1970 and 2000. Human activity, including fracking, has been cited by scientists as the cause, according to Dallas Morning News.
  • Last year, USGS connected a 5.7-magnitude quake in Oklahoma to that state’s robust fracking industry. “The observation that a human-induced earthquake can trigger a cascade of earthquakes, including a larger one, has important implications for reducing the seismic risk from wastewater injection,” USGS seismologist and coauthor of the study Elizabeth Cochran said at the time. More than 120 quakes have hit the Dallas area in the past six years, and scientists have cited the work performed at nearby fracking sites as the reason, according to Homeland Security News Wire. Even the Texas Oil & Gas Association agreed that some research into the nexus of fracking and quakes is called for. “The oil and natural gas industry agrees that recent seismic activity warrants robust investigation to determine the precise location, impact and cause or causes of seismic events,” Todd Staples, the association’s president, said in a statement. A study published in the Bulletin of the Seismological Society of America says fracking near Ohio’s Poland Township triggered a previously undiscovered fault. The result was more than 70 earthquakes ranging in magnitude of 2.1 to 3.0, the latter of which was described as “rare” by the experts.
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    Yet another factor to contribute to the piercing of the shale oil bubble in the U.S. economy.The shale oil and gas industry in the U.S. is collapsing because its production costs can not result in profits when the price of oil is so low. Banksters have ended the flow of new well development funding. Shale oil development companies are going bankrupt by the dozens  and tens of thousands of shale oil workers have been laid off.  
Paul Merrell

American Democracy is Owned by the Rich | Al Jazeera America - 1 views

  • Two new studies by political scientists offer compelling evidence that the rich use their wealth to control the political system and that the U.S. is a democratic republic in name only. In a study of Senate voting patterns, Michael Jay Barber found that “senators’ preferences reflect the preferences of the average donor better than any other group.” In a similar study of the House of Representatives, Jesse H. Rhodes and Brian F. Schaffner found that, “millionaires receive about twice as much representation when they comprise about 5 percent of the district’s population than the poorest wealth group does when it makes up 50 percent of the district.” In fact, the increasing influence of the rich over Congress is the leading driver of polarization in modern politics, with the rich using the political system to entrench wealth by pushing for tax breaks and blocking redistributive policies.
  • At the turn of the decade, political scientists Larry Bartels, Jacob Hacker and Martin Gilens wrote several incredibly influential important books arguing, persuasively, that the preferences of the rich were better represented in Congress than the poor. After the books were published, there was a flurry of research arguing that they had overstated their case. Critics alleged two key defects in Bartels’ and Gilens’ arguments. First, because polling data on the super-wealthy were sparse, it was difficult to prove that there were large differences in opinion. Political scientists often rely on composite measures of policy liberalism, but since the poor tend to be more economically liberal but socially conservative, the differences between the poor and moderately rich can often be obscured. Second, there was no way to show that influence of the wealthy was caused directly by the influence of money. It might well be that the rich are simply opinion leaders or are more likely to vote.
  • Recent research offers compelling answers to these criticisms. The new evidence adds credence to the Bartels-Gilens-Hacker view that money is corrupting American politics. By using a massive database of ideology that includes the super wealthy, Schaffner and Rhodes found that “members of Congress are much more responsive to the wealthy than to their poor constituents.” However, this difference is not equal between both parties; rather, Democrats are far more responsive to the poor than Republicans. (This is not surprising; other research supports this claim.) They find that both parties strongly favor the upper-middle class, those with $100,000 to $300,000 in wealth. But Republicans are not only more responsive to the rich, but particularly to rich donors. Schaffner and Rhodes argue that, “campaign donations, but not voter registration or participation in primary or general election, may help explain the disproportionate influence of the wealthy among Republican representatives.” Barber’s study is the first to directly examine the policy preferences of the donor class. Barber sent 20,500 letters to people who contributed to 22 Senate elections in 2012 and asked about various policy questions. This allowed Barber to examine the differences in representation between donors and non-donors. His finding: Donors’ preferences tend to be far better represented than non-donors’. The chart below measures the ideological differences between various groups, with 0 indicating a perfect fit. The data show that Senators are almost perfectly aligned with their donors, but rather distant from voters.
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  • In fact, politicians are almost perfectly aligned with donors, but less aligned with partisans (people who voted for the Senator and share party affiliation), supporters (people who voted for the Senator) and voters in general. He Barber also finds that donors tend to be far more extreme in their views (see chart below). For instance, while about sixty percent of non-donor Republicans oppose the Affordable Care Act, opposition among donors is “almost unanimous.” Barber also notes that donors tend to be far more extreme than non-donors (see chart). (This is supported by other studies).
  • Such data could explain the rising polarization of Congress, as politicians increasingly respond to their donors, rather than to voters. Political scientists Walter J. Stone and Elizabeth N. Simas have found that challengers raise more money when they take extreme positions, which helps explain why incumbent representatives tend to be more partisan than departing representatives. It certainly explains the intransigence of the last two Congresses: Republicans, who are responding to their rich donor base, are incentivized to oppose any action, particularly those supporting Obama, lest they lose funding. Since Senators have to raise approximately $3,300 a day every year for six years to remain viable, they will inevitably have to succumb to the power of money if they wish to be reelected. This research raises the disturbing thought that our political system is no longer representative. As Barber notes, about half of all donors are from out of state, meaning that politicians are no longer responsive to their voters (though they are slightly more during election years). Given that only .22 percent of Americans made a donation of more than $200 (the level Barber studies) in 2014, we have power evidence that America is now a government of the one percent — indeed, of the one-fifth of one percent.
  • This disturbing trend affects politics at all levels. At the state level, political scientists Gerald Wright and Elizabeth Rigby found that state party platforms are far more influenced by the rich than the poor. Elsewhere, Barber found evidence that presidents are more responsive to donors than non-donors. Recently Griffin and Newman found representation gaps between whites and people of color as well as low-income voters. This finding is supported by Christopher Ellis, who found that donors were better represented than non-donors (although using a less comprehensive method than Barber). In a frank moment, U.S. Sen. Chris Murphy (D – Conn.) said, “I talked a lot more about carried interest inside of that call room than I did in the supermarket.” He’s correct: Donors tending to be far richer and wealthier than non-donors (see chart).
  • There are still unanswered questions. It is possible that politicians cast ideological votes to appease donors and partisans (for instance, the vain attempt to repeal the Affordable Care Act dozens of times), while also working to benefit the poor and middle class through less visible means. This might explain why political journalists, who often focus on major legislation, miss the distributional impacts of political appointments and regulatory action. It may be that politicians work to maximize votes, and then political donations follow (though there is strong evidence this isn’t the case). Either way, the most up-to-date evidence strongly suggests that money is distorting our system, and that evidence appears to be growing stronger by the day.
  • The solution, as a recent Demos report suggests, is to help reformist candidates gather donations with a public matching system. Since voters who are non-donors are less ideological, the solution is to balance out the political distortions from the donor class by turning these non-donors into donors. Citizens United has only increased the stranglehold of moneyed interests on our political system, and is daily choking the life of our democracy. Only by restoring influence to all voters will our republic be restored.
Paul Merrell

Edward Snowden: A 'Nation' Interview | The Nation - 0 views

  • Snowden: That’s the key—to maintain the garden of liberty, right? This is a generational thing that we must all do continuously. We only have the rights that we protect. It doesn’t matter what we say or think we have. It’s not enough to believe in something; it matters what we actually defend. So when we think in the context of the last decade’s infringements upon personal liberty and the last year’s revelations, it’s not about surveillance. It’s about liberty. When people say, “I have nothing to hide,” what they’re saying is, “My rights don’t matter.” Because you don’t need to justify your rights as a citizen—that inverts the model of responsibility. The government must justify its intrusion into your rights. If you stop defending your rights by saying, “I don’t need them in this context” or “I can’t understand this,” they are no longer rights. You have ceded the concept of your own rights. You’ve converted them into something you get as a revocable privilege from the government, something that can be abrogated at its convenience. And that has diminished the measure of liberty within a society.
  • From the very beginning, I said there are two tracks of reform: there’s the political and the technical. I don’t believe the political will be successful, for exactly the reasons you underlined. The issue is too abstract for average people, who have too many things going on in their lives. And we do not live in a revolutionary time. People are not prepared to contest power. We have a system of education that is really a sort of euphemism for indoctrination. It’s not designed to create critical thinkers. We have a media that goes along with the government by parroting phrases intended to provoke a certain emotional response—for example, “national security.” Everyone says “national security” to the point that we now must use the term “national security.” But it is not national security that they’re concerned with; it is state security. And that’s a key distinction. We don’t like to use the phrase “state security” in the United States because it reminds us of all the bad regimes. But it’s a key concept, because when these officials are out on TV, they’re not talking about what’s good for you. They’re not talking about what’s good for business. They’re not talking about what’s good for society. They’re talking about the protection and perpetuation of a national state system. I’m not an anarchist. I’m not saying, “Burn it to the ground.” But I’m saying we need to be aware of it, and we need to be able to distinguish when political developments are occurring that are contrary to the public interest. And that cannot happen if we do not question the premises on which they’re founded. And that’s why I don’t think political reform is likely to succeed. [Senators] Udall and Wyden, on the intelligence committee, have been sounding the alarm, but they are a minority.
  • The Nation: Every president—and this seems to be confirmed by history—will seek to maximize his or her power, and will see modern-day surveillance as part of that power. Who is going to restrain presidential power in this regard? Snowden: That’s why we have separate and co-equal branches. Maybe it will be Congress, maybe not. Might be the courts, might not. But the idea is that, over time, one of these will get the courage to do so. One of the saddest and most damaging legacies of the Bush administration is the increased assertion of the “state secrets” privilege, which kept organizations like the ACLU—which had cases of people who had actually been tortured and held in indefinite detention—from getting their day in court. The courts were afraid to challenge executive declarations of what would happen. Now, over the last year, we have seen—in almost every single court that has had this sort of national-security case—that they have become markedly more skeptical. People at civil-liberties organizations say it’s a sea change, and that it’s very clear judges have begun to question more critically assertions made by the executive. Even though it seems so obvious now, it is extraordinary in the context of the last decade, because courts had simply said they were not the best branch to adjudicate these claims—which is completely wrong, because they are the only nonpolitical branch. They are the branch that is specifically charged with deciding issues that cannot be impartially decided by politicians. The power of the presidency is important, but it is not determinative. Presidents should not be exempted from the same standards of reason and evidence and justification that any other citizen or civil movement should be held to.
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  • The Nation: Explain the technical reform you mentioned. Snowden: We already see this happening. The issue I brought forward most clearly was that of mass surveillance, not of surveillance in general. It’s OK if we wiretap Osama bin Laden. I want to know what he’s planning—obviously not him nowadays, but that kind of thing. I don’t care if it’s a pope or a bin Laden. As long as investigators must go to a judge—an independent judge, a real judge, not a secret judge—and make a showing that there’s probable cause to issue a warrant, then they can do that. And that’s how it should be done. The problem is when they monitor all of us, en masse, all of the time, without any specific justification for intercepting in the first place, without any specific judicial showing that there’s a probable cause for that infringement of our rights.
  • Since the revelations, we have seen a massive sea change in the technological basis and makeup of the Internet. One story revealed that the NSA was unlawfully collecting data from the data centers of Google and Yahoo. They were intercepting the transactions of data centers of American companies, which should not be allowed in the first place because American companies are considered US persons, sort of, under our surveillance authorities. They say, “Well, we were doing it overseas,” but that falls under a different Reagan-era authority: EO 12333, an executive order for foreign-intelligence collection, as opposed to the ones we now use domestically. So this one isn’t even authorized by law. It’s just an old-ass piece of paper with Reagan’s signature on it, which has been updated a couple times since then. So what happened was that all of a sudden these massive, behemoth companies realized their data centers—sending hundreds of millions of people’s communications back and forth every day—were completely unprotected, electronically naked. GCHQ, the British spy agency, was listening in, and the NSA was getting the data and everything like that, because they could dodge the encryption that was typically used. Basically, the way it worked technically, you go from your phone to Facebook.com, let’s say—that link is encrypted. So if the NSA is trying to watch it here, they can’t understand it. But what these agencies discovered was, the Facebook site that your phone is connected to is just the front end of a larger corporate network—that’s not actually where the data comes from. When you ask for your Facebook page, you hit this part and it’s protected, but it has to go on this long bounce around the world to actually get what you’re asking for and go back. So what they did was just get out of the protected part and they went onto the back network. They went into the private network of these companies.
  • The Nation: The companies knew this? Snowden: Companies did not know it. They said, “Well, we gave the NSA the front door; we gave you the PRISM program. You could get anything you wanted from our companies anyway—all you had to do was ask us and we’re gonna give it to you.” So the companies couldn’t have imagined that the intelligence communities would break in the back door, too—but they did, because they didn’t have to deal with the same legal process as when they went through the front door. When this was published by Barton Gellman in The Washington Post and the companies were exposed, Gellman printed a great anecdote: he showed two Google engineers a slide that showed how the NSA was doing this, and the engineers “exploded in profanity.” Another example—one document I revealed was the classified inspector general’s report on a Bush surveillance operation, Stellar Wind, which basically showed that the authorities knew it was unlawful at the time. There was no statutory basis; it was happening basically on the president’s say-so and a secret authorization that no one was allowed to see. When the DOJ said, “We’re not gonna reauthorize this because it is not lawful,” Cheney—or one of Cheney’s advisers—went to Michael Hayden, director of the NSA, and said, “There is no lawful basis for this program. DOJ is not going to reauthorize it, and we don’t know what we’re going to do. Will you continue it anyway on the president’s say-so?” Hayden said yes, even though he knew it was unlawful and the DOJ was against it. Nobody has read this document because it’s like twenty-eight pages long, even though it’s incredibly important.
  • The big tech companies understood that the government had not only damaged American principles, it had hurt their businesses. They thought, “No one trusts our products anymore.” So they decided to fix these security flaws to secure their phones. The new iPhone has encryption that protects the contents of the phone. This means if someone steals your phone—if a hacker or something images your phone—they can’t read what’s on the phone itself, they can’t look at your pictures, they can’t see the text messages you send, and so forth. But it does not stop law enforcement from tracking your movements via geolocation on the phone if they think you are involved in a kidnapping case, for example. It does not stop law enforcement from requesting copies of your texts from the providers via warrant. It does not stop them from accessing copies of your pictures or whatever that are uploaded to, for example, Apple’s cloud service, which are still legally accessible because those are not encrypted. It only protects what’s physically on the phone. This is purely a security feature that protects against the kind of abuse that can happen with all these things being out there undetected. In response, the attorney general and the FBI director jumped on a soap box and said, “You are putting our children at risk.”
  • The Nation: Is there a potential conflict between massive encryption and the lawful investigation of crimes? Snowden: This is the controversy that the attorney general and the FBI director were trying to create. They were suggesting, “We have to be able to have lawful access to these devices with a warrant, but that is technically not possible on a secure device. The only way that is possible is if you compromise the security of the device by leaving a back door.” We’ve known that these back doors are not secure. I talk to cryptographers, some of the leading technologists in the world, all the time about how we can deal with these issues. It is not possible to create a back door that is only accessible, for example, to the FBI. And even if it were, you run into the same problem with international commerce: if you create a device that is famous for compromised security and it has an American back door, nobody is gonna buy it. Anyway, it’s not true that the authorities cannot access the content of the phone even if there is no back door. When I was at the NSA, we did this every single day, even on Sundays. I believe that encryption is a civic responsibility, a civic duty.
  • The Nation: Some years ago, The Nation did a special issue on patriotism. We asked about a hundred people how they define it. How do you define patriotism? And related to that, you’re probably the world’s most famous whistleblower, though you don’t like that term. What characterization of your role do you prefer? Snowden: What defines patriotism, for me, is the idea that one rises to act on behalf of one’s country. As I said before, that’s distinct from acting to benefit the government—a distinction that’s increasingly lost today. You’re not patriotic just because you back whoever’s in power today or their policies. You’re patriotic when you work to improve the lives of the people of your country, your community and your family. Sometimes that means making hard choices, choices that go against your personal interest. People sometimes say I broke an oath of secrecy—one of the early charges leveled against me. But it’s a fundamental misunderstanding, because there is no oath of secrecy for people who work in the intelligence community. You are asked to sign a civil agreement, called a Standard Form 312, which basically says if you disclose classified information, they can sue you; they can do this, that and the other. And you risk going to jail. But you are also asked to take an oath, and that’s the oath of service. The oath of service is not to secrecy, but to the Constitution—to protect it against all enemies, foreign and domestic. That’s the oath that I kept, that James Clapper and former NSA director Keith Alexander did not. You raise your hand and you take the oath in your class when you are on board. All government officials are made to do it who work for the intelligence agencies—at least, that’s where I took the oath.
  • The Nation: Creating a new system may be your transition, but it’s also a political act. Snowden: In case you haven’t noticed, I have a somewhat sneaky way of effecting political change. I don’t want to directly confront great powers, which we cannot defeat on their terms. They have more money, more clout, more airtime. We cannot be effective without a mass movement, and the American people today are too comfortable to adapt to a mass movement. But as inequality grows, the basic bonds of social fraternity are fraying—as we discussed in regard to Occupy Wall Street. As tensions increase, people will become more willing to engage in protest. But that moment is not now.
  • The Nation: You really think that if you could go home tomorrow with complete immunity, there wouldn’t be irresistible pressure on you to become a spokesperson, even an activist, on behalf of our rights and liberties? Indeed, wouldn’t that now be your duty? Snowden: But the idea for me now—because I’m not a politician, and I do not think I am as effective in this way as people who actually prepare for it—is to focus on technical reform, because I speak the language of technology. I spoke with Tim Berners-Lee, the guy who invented the World Wide Web. We agree on the necessity for this generation to create what he calls the Magna Carta for the Internet. We want to say what “digital rights” should be. What values should we be protecting, and how do we assert them? What I can do—because I am a technologist, and because I actually understand how this stuff works under the hood—is to help create the new systems that reflect our values. Of course I want to see political reform in the United States. But we could pass the best surveillance reforms, the best privacy protections in the history of the world, in the United States, and it would have zero impact internationally. Zero impact in China and in every other country, because of their national laws—they won’t recognize our reforms; they’ll continue doing their own thing. But if someone creates a reformed technical system today—technical standards must be identical around the world for them to function together.
  • As for labeling someone a whistleblower, I think it does them—it does all of us—a disservice, because it “otherizes” us. Using the language of heroism, calling Daniel Ellsberg a hero, and calling the other people who made great sacrifices heroes—even though what they have done is heroic—is to distinguish them from the civic duty they performed, and excuses the rest of us from the same civic duty to speak out when we see something wrong, when we witness our government engaging in serious crimes, abusing power, engaging in massive historic violations of the Constitution of the United States. We have to speak out or we are party to that bad action.
  • The Nation: Considering your personal experience—the risks you took, and now your fate here in Moscow—do you think other young men or women will be inspired or discouraged from doing what you did? Snowden: Chelsea Manning got thirty-five years in prison, while I’m still free. I talk to people in the ACLU office in New York all the time. I’m able to participate in the debate and to campaign for reform. I’m just the first to come forward in the manner that I did and succeed. When governments go too far to punish people for actions that are dissent rather than a real threat to the nation, they risk delegitimizing not just their systems of justice, but the legitimacy of the government itself. Because when they bring political charges against people for acts that were clearly at least intended to work in the public interest, they deny them the opportunity to mount a public-interest defense. The charges they brought against me, for example, explicitly denied my ability to make a public-interest defense. There were no whistleblower protections that would’ve protected me—and that’s known to everybody in the intelligence community. There are no proper channels for making this information available when the system fails comprehensively.
  • The government would assert that individuals who are aware of serious wrongdoing in the intelligence community should bring their concerns to the people most responsible for that wrongdoing, and rely on those people to correct the problems that those people themselves authorized. Going all the way back to Daniel Ellsberg, it is clear that the government is not concerned with damage to national security, because in none of these cases was there damage. At the trial of Chelsea Manning, the government could point to no case of specific damage that had been caused by the massive revelation of classified information. The charges are a reaction to the government’s embarrassment more than genuine concern about these activities, or they would substantiate what harms were done. We’re now more than a year since my NSA revelations, and despite numerous hours of testimony before Congress, despite tons of off-the-record quotes from anonymous officials who have an ax to grind, not a single US official, not a single representative of the United States government, has ever pointed to a single case of individualized harm caused by these revelations. This, despite the fact that former NSA director Keith Alexander said this would cause grave and irrevocable harm to the nation. Some months after he made that statement, the new director of the NSA, Michael Rogers, said that, in fact, he doesn’t see the sky falling. It’s not so serious after all.
  • The Nation: You also remind us of [Manhattan Project physicist] Robert Oppenheimer—what he created and then worried about. Snowden: Someone recently talked about mass surveillance and the NSA revelations as being the atomic moment for computer scientists. The atomic bomb was the moral moment for physicists. Mass surveillance is the same moment for computer scientists, when they realize that the things they produce can be used to harm a tremendous number of people. It is interesting that so many people who become disenchanted, who protest against their own organizations, are people who contributed something to them and then saw how it was misused. When I was working in Japan, I created a system for ensuring that intelligence data was globally recoverable in the event of a disaster. I was not aware of the scope of mass surveillance. I came across some legal questions when I was creating it. My superiors pushed back and were like, “Well, how are we going to deal with this data?” And I was like, “I didn’t even know it existed.” Later, when I found out that we were collecting more information on American communications than we were on Russian communications, for example, I was like, “Holy shit.” Being confronted with the realization that work you intended to benefit people is being used against them has a radicalizing effect.
  • The Nation: We have a sense, or certainly the hope, we’ll be seeing you in America soon—perhaps sometime after this Ukrainian crisis ends. Snowden: I would love to think that, but we’ve gone all the way up the chain at all the levels, and things like that. A political decision has been made not to irritate the intelligence community. The spy agencies are really embarrassed, they’re really sore—the revelations really hurt their mystique. The last ten years, they were getting the Zero Dark Thirty treatment—they’re the heroes. The surveillance revelations bring them back to Big Brother kind of narratives, and they don’t like that at all. The Obama administration almost appears as though it is afraid of the intelligence community. They’re afraid of death by a thousand cuts—you know, leaks and things like that.
  • The Nation: You’ve given us a lot of time, and we are very grateful, as will be The Nation’s and other readers. But before we end, any more thoughts about your future? Snowden: If I had to guess what the future’s going to look like for me—assuming it’s not an orange jumpsuit in a hole—I think I’m going to alternate between tech and policy. I think we need that. I think that’s actually what’s missing from government, for the most part. We’ve got a lot of policy people, but we have no technologists, even though technology is such a big part of our lives. It’s just amazing, because even these big Silicon Valley companies, the masters of the universe or whatever, haven’t engaged with Washington until recently. They’re still playing catch-up. As for my personal politics, some people seem to think I’m some kind of archlibertarian, a hyper-conservative. But when it comes to social policies, I believe women have the right to make their own choices, and inequality is a really important issue. As a technologist, I see the trends, and I see that automation inevitably is going to mean fewer and fewer jobs. And if we do not find a way to provide a basic income for people who have no work, or no meaningful work, we’re going to have social unrest that could get people killed. When we have increasing production—year after year after year—some of that needs to be reinvested in society. It doesn’t need to be consistently concentrated in these venture-capital funds and things like that. I’m not a communist, a socialist or a radical. But these issues have to be 
addressed.
  •  
    Remarkable interview. Snowden finally gets asked some questions about politics. 
Paul Merrell

Iceland Stuns Banks: Plans To Take Back The Power To Create Money | Global Research - C... - 0 views

  • Who knew that the revolution would start with those radical Icelanders? It does, though. One Frosti Sigurjonsson, a lawmaker from the ruling Progress Party, issued a report today that suggests taking the power to create money away from commercial banks, and hand it to the central bank and, ultimately, Parliament. Can’t see commercial banks in the western world be too happy with this. They must be contemplating wiping the island nation off the map. If accepted in the Iceland parliament , the plan would change the game in a very radical way. It would be successful too, because there is no bigger scourge on our economies than commercial banks creating money and then securitizing and selling off the loans they just created the money (credit) with. Everyone, with the possible exception of Paul Krugman, understands why this is a very sound idea. Agence France Presse reports: Iceland Looks At Ending Boom And Bust With Radical Money Plan Iceland’s government is considering a revolutionary monetary proposal – removing the power of commercial banks to create money and handing it to the central bank. The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled “A better monetary system for Iceland”.
  • “The findings will be an important contribution to the upcoming discussion, here and elsewhere, on money creation and monetary policy,” Prime Minister Sigmundur David Gunnlaugsson said. The report, commissioned by the premier, is aimed at putting an end to a monetary system in place through a slew of financial crises, including the latest one in 2008.
  • According to a study by four central bankers, the country has had “over 20 instances of financial crises of different types” since 1875, with “six serious multiple financial crisis episodes occurring every 15 years on average”. Mr Sigurjonsson said the problem each time arose from ballooning credit during a strong economic cycle. He argued the central bank was unable to contain the credit boom, allowing inflation to rise and sparking exaggerated risk-taking and speculation, the threat of bank collapse and costly state interventions. In Iceland, as in other modern market economies, the central bank controls the creation of banknotes and coins but not the creation of all money, which occurs as soon as a commercial bank offers a line of credit. The central bank can only try to influence the money supply with its monetary policy tools.
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  • Under the so-called Sovereign Money proposal, the country’s central bank would become the only creator of money. “Crucially, the power to create money is kept separate from the power to decide how that new money is used,” Mr Sigurjonsson wrote in the proposal. “As with the state budget, the parliament will debate the government’s proposal for allocation of new money,” he wrote. Banks would continue to manage accounts and payments, and would serve as intermediaries between savers and lenders. Mr Sigurjonsson, a businessman and economist, was one of the masterminds behind Iceland’s household debt relief programme launched in May 2014 and aimed at helping the many Icelanders whose finances were strangled by inflation-indexed mortgages signed before the 2008 financial crisis.
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    In closely related news, a Pentagon spokesman announced that soldiers of the U.S. Army's 101st Airborne Brigade and 22nd and 26th Marine Expeditionary Units were in the "mopping up stage" of routing terrorists who had captured the city of Reykjavík, Iceland in an April 7, 2015 surpise attack. According to knowledgeable sources in the White House, the terrorist invasion was reported by an unidentified official of the Federal Reserve Bank of New York, who had received urgent telephone calls from counterparts in Iceland's central bank. "We're still assessing the situation, but it looks like all members of the Icelandic government were brutally executed by the terrorists just before they retreated," Rear Adm. John Kirby said. Asked for the name of the terrorist organization that carried out the attack, Adm. Kirby said that the name had not yet been declassified, but said that he hoped to be able to announce that information soon.     
Paul Merrell

Air Force Awards Contract for Long Range Strike Bomber > U.S. DEPARTMENT OF DEFENSE > A... - 0 views

  • The Air Force announced today the contract award of engineering and manufacturing development and early production for the Long Range Strike Bomber, or LRS-B, to Northrop Grumman Corp. 
  • Air Force Secretary Deborah Lee James said the LRS-B is critical to national defense and is a top priority for the Air Force. “We face a complex security environment,” she said. “It’s imperative our Air Force invests in the right people, technology, capability, and training to defend the nation and its interests – at an affordable cost.” The future threat will evolve through the introduction of advanced air defense systems and development of more capable surface to air missile systems. The LRS-B is designed to replace the Air Force’s aging fleets of bombers – ranging in age from 50+ years for the B-52 to 17+ years for the B-2 – with a long range, highly survivable bomber capable of penetrating and operating in tomorrow’s anti-access, area denial environment. The LRS-B provides the strategic agility to launch from the United States and strike any target, any time around the globe. “The LRS-B will provide our nation tremendous flexibility as a dual-capable bomber and the strategic agility to respond and adapt faster than our potential adversaries,” said Gen. Mark A. Welsh III, Chief of Staff of the Air Force. “We have committed to the American people to provide security in the skies, balanced by our responsibility to affordably use taxpayer dollars in doing so. This program delivers both while ensuring we are poised to face emerging threats in an uncertain future.”
  • The Long Range Strike Bomber contract is composed of two parts. The contract for the Engineering and Manufacturing Development, or EMD, phase is a cost-reimbursable type contract with cost and performance incentives. The incentives minimize the contractor’s profit if they do not control cost and schedule appropriately. The independent estimate for the EMD phase is $21.4 billion in 2010 dollars. The second part of the contract is composed of options for the first 5 production lots, comprising 21 aircraft out of the total fleet of 100. They are fixed price options with incentives for cost.  Based on approved requirements, the Average Procurement Unit Cost (APUC) per aircraft is required to be equal to or less than $550 million per aircraft in 2010 dollars when procuring 100 LRS-B aircraft. The APUC from the independent estimate supporting today’s award is $511 million per aircraft, again in 2010 dollars.
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    Here we go again, another cost overrun nightmare 
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