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Paul Merrell

5 Big Banks Expected to Plead Guilty to Felony Charges, but Punishments May Be Tempered... - 0 views

  • The Justice Department is preparing to announce that Barclays, JPMorgan Chase, Citigroup and the Royal Bank of Scotland will collectively pay several billion dollars and plead guilty to criminal antitrust violations for rigging the price of foreign currencies, according to people briefed on the matter who spoke on the condition of anonymity. Most if not all of the pleas are expected to come from the banks’ holding companies, the people said — a first for Wall Street giants that until now have had only subsidiaries or their biggest banking units plead guilty.
  • The Justice Department is also preparing to resolve accusations of foreign currency misconduct at UBS. As part of that deal, prosecutors are taking the rare step of tearing up a 2012 nonprosecution agreement with the bank over the manipulation of benchmark interest rates, the people said, citing the bank’s foreign currency misconduct as a violation of the earlier agreement. UBS A.G., the banking unit that signed the 2012 nonprosecution agreement, is expected to plead guilty to the earlier charges and pay a fine that could be as high as $500 million rather than go to trial, the people said.
  • Holding companies, while appearing to be the most important entities at the banks, are in less jeopardy of suffering the consequences of guilty pleas. Some banks worried that a guilty plea by their biggest banking units, which hold licenses that enable them to operate branches and make loans, would be riskier, two of the people briefed on the matter said. The fear, they said, centered on whether state or federal regulators might revoke those licenses in response to the pleas. Advertisement Continue reading the main story Behind the scenes in Washington, the banks’ lawyers are also seeking assurances from federal regulators — including the Securities and Exchange Commission and the Labor Department — that the banks will not be barred from certain business practices after the guilty pleas, the people said. While the S.E.C.’s five commissioners have not yet voted on the requests for waivers, which would allow the banks to conduct business as usual despite being felons, the people briefed on the matter expected a majority of commissioners to grant them.In reality, those accommodations render the plea deals, at least in part, an exercise in stagecraft. And while banks might prefer a deferred-prosecution agreement that suspends charges in exchange for fines and other concessions — or a nonprosecution deal like the one that UBS is on the verge of losing — the reputational blow of being a felon does not spell disaster.
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  • The foreign exchange investigation, which centers on accusations that traders colluded to fix the price of major currencies, will test the Justice Department’s strategy for securing guilty pleas on Wall Street.
  • In the case of UBS, the bank will lose its nonprosecution agreement over interest rate manipulation, the people briefed on the matter said, a consequence of its misconduct in the foreign exchange case. It is unclear why that penalty will fall on UBS, but not on other banks suspected of manipulating both interest rates and currency prices.
  • the bank is expected to avoid pleading guilty in the foreign exchange case, the people said, though it will probably pay a fine. While UBS was unlikely to plead guilty to antitrust violations because it was the first to cooperate in the foreign exchange investigation, the bank was facing the possibility of pleading guilty to fraud charges related to the currency manipulation. The exact punishment is not yet final, the people added.The Justice Department negotiations coincide with the banks’ separate efforts to persuade the S.E.C. to issue waivers from automatic bans that occur when a company pleads guilty. If the waivers are not granted, a decision that the Justice Department does not control, the banks could face significant consequences.For example, some banks may be seeking waivers to a ban on overseeing mutual funds, one of the people said. They are also requesting waivers to ensure they do not lose their special status as “well-known seasoned issuers,” which allows them to fast-track securities offerings. For some of the banks, there is also a concern that they will lose their “safe harbor” status for making forward-looking statements in securities documents.
  • In turn, the S.E.C. asked the Justice Department to hold off on announcing the currency cases until the banks’ requests had been reviewed, one of the people said. As of Wednesday, it seemed probable that a majority of the S.E.C.’s commissioners would approve most of the waivers, which can be granted for a cause like the public good. Still, the agency’s two Democratic commissioners — Kara M. Stein and Luis A. Aguilar, who have denounced the S.E.C.’s use of waivers — might be more likely to balk.
  • Corporate prosecutions are a delicate matter, peppered with political and legal land mines. Senator Elizabeth Warren, Democrat of Massachusetts, and other liberal politicians have criticized prosecutors for treating Wall Street with kid gloves. Banks and their lawyers, however, complain about huge penalties and guilty pleas. Continue reading the main story Recent Comments AvangionQ 14 hours ago These are the sorts of crimes that take down nations, jail sentences should be mandatory. Lance Haley 14 hours ago I find this whole legal exercise not only irrational, but insulting. I am a criminal defense attorney. Punishing the shareholders and the... loomypop 14 hours ago There is much more than Irony in the reality of how America treats criminal action and punishment when the entire determination and outcome... See All Comments And lingering in the background is the case of Arthur Andersen, an accounting giant that imploded after being convicted in 2002 of criminal charges related to its work for Enron. After the firm’s collapse, and the later reversal of its conviction, prosecutors began to shift from indictments and guilty pleas to deferred-prosecution agreements. And in 2008, the Justice Department updated guidelines for prosecuting corporations, which have long included a requirement that prosecutors weigh collateral consequences like harm to shareholders and innocent employees.
  • “The collateral consequences consideration is designed to address the risk that a particular criminal charge might inflict disproportionate harm to shareholders, pension holders and employees who are not even alleged to be culpable or to have profited potentially from wrongdoing,” said Mark Filip, the Justice Department official who wrote the 2008 memo. “Arthur Andersen was ultimately never convicted of anything, but the mere act of indicting it destroyed one of the cornerstones of the Midwest’s economy.”
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    In related news, the Dept. of Justice announced that it would begin using its "collateral consequences" analysis to decisions whether to charge human beings with crimes, taking into account the hardships imposed on innocent family members and other dependents if a person were sentenced to prison.  No? Sounds like corporations have more rights than human beings, yes?
Gary Edwards

BP is asking for its punishment-literally | The Daily Caller - Chris Horner - 0 views

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    Chris Horner was in the room when BP, Enron, Al Gore and Clinton met to discuss by-passing the Constitutional advise and consent role role of the Senate and signing the Kyoto Treaty with "Cap and Trade" mandates.  Enron and BP invented "Cap and Trade".  And now Obama promises to punish BP by passing a USA "Cap and Trade" energy tax on US citizens.  Right.  Figure that one out!  Excellent article. Tim Carney has a column at the Washington Examiner detailing BP's lobbying influence, which begs the following history lesson and first-hand account for voters, generally unaccustomed to such sleaze, to fully appreciate the game presently being played out in Washington. President Obama announced in Pittsburgh last week that BP's Gulf oil spill demands his wrath in the form of the Kerry-Lieberman "cap-and-trade" energy tax. Hearing this, your reaction may have been to wonder just how making energy more expensive for everyone-seniors, the poor, it's all good-is a proper response. And the truth is that our young ideological president's effort to make sure this crisis doesn't go to waste is actually much worse than it seems on its face. BP, joined by Enron, invented carbon cap-and-trade in the mid-1990s. Yeah. That cap-and-trade. I know, because I was in the room. And BP has been lobbying for it aggressively and at great expense ever since, some eight figures of which has gone to green pressure groups. Specifically, in May 1997 I met with senior officials from BP, Niagara Mohawk Power, and others… "others" like the Union of Concerned Scientists and their ilk… in the Washington offices of a white-shoe New York law firm, putting our collective heads together strategizing on how to get the U.S. roped into a global warming treaty, and get "cap-and-trade" imposed domestically, too.
Paul Merrell

Defense Manual Allows for Journalists' Detention | Al Jazeera America - 0 views

  • New Defense Department guidelines allow commanders to punish journalists and treat them as "unprivileged belligerents" if they believe journalists are sympathizing or cooperating with the enemy. The Law of War manual, updated to apply for the first time to all branches of the military, contains a vaguely worded provision that military commanders could interpret broadly, experts in military law and journalism say. Commanders could ask journalists to leave military bases or detain journalists for any number of perceived offenses. "In general, journalists are civilians," the 1,180 page manual says, but it adds that "journalists may be members of the armed forces, persons authorized to accompany the armed forces, or unprivileged belligerents." A person deemed to be an "unprivileged belligerent" is not entitled to the rights afforded by the Geneva Convention. A commander could restrict from certain coverage areas or even hold indefinitely without charges any reporter considered an "unprivileged belligerent." The manual adds, "Reporting on military operations can be very similar to collecting intelligence or even spying. A journalist who acts as a spy may be subject to security measures and punished if captured." It is not specific as to the punishment or under what circumstances a commander can decide to "punish" a journalist.
  • Defense Department officials said the reference to "unprivileged belligerents" was intended to point out that armed group members or spies could be masquerading as reporters. The designation was also made to warn against someone who works publications like Al-Qaeda's "Inspire" magazine that can be used to encourage or recruit adherents. Another provision says that "relaying of information" could be construed as "taking a direct part in hostilities." Officials said that is intended to refer to passing information about ongoing operations, locations of troops or other classified data to an enemy. Army Lt. Col. Joe Sowers, a Pentagon spokesman, said it was not the Defense Department's intent to allow an overzealous commander to block journalists or take action against those who write critical stories.
  • But Ken Lee, an ex-Marine and military lawyer who specializes in "law of war" issues and is now in private practice, said it was worrisome that the detention of a journalist could come down to a commander's interpretation of the law.  If a reporter writes an unflattering story, "does this give a commander the impetus to say, now you're an unprivileged belligerent? I would hope not," Lee said. Defense officials said the manual describes the law for informational purposes and is not an authorization for anyone to take any particular action regarding journalists. The manual also notes that journalists captured by the enemy are supposed to be given the rights of prisoners of war under the Geneva Convention.
Paul Merrell

World Bank Warns of Total Collapse of Economy in Gaza | nsnbc international - 0 views

  • The World Bank will be presenting a report to the bi-annual Ad Hoc Liaison Committee (AHLC) meeting on May 27, 2015 in Brussels that highlights the Gaza Strip’s economic status under Israel’s blockade. In 2014, Gaza’s unemployment rate reached 43%, the highest in the world. The youth unemployment in Gaza is at a record high of 60%.
  • Because of the blockade and the Israeli army’s multiple heavy assaults on the region, economic opportunities are few and far between. Although 4/5 of people in Gaza, nearly 80%, receive assistance, many residents still fall far below the poverty line. Gaza’s exports are nearly nonexistent due to the Israeli blockade and since 2014, Gaza’s manufacturing has shrunk by 60%. The economy of Gaza is crumbling and cannot support it’s 1.8 million residents. It is important to note that after nearly a year since the end of the assault on Gaza, the rate of dispursement of donor pledges is only at 27.5 percent. Under the current status quo, the people of Gaza will continue to suffer under unsustainable conditions. last summer Israeli war on Gaza left more than 2500 people killed and at least 12,000 injured. near 60% of build up areas of the costal region was hit by Israelsi ground, sea, and aireal bombardment. The whole summary of the report that will be presented by the World Bank can be read here:
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    Life in the world's largest open-air prison. Collective punishment of civilians is forbidden by the 4th Geneva Convention on the rights of civilians during war time. 
Gary Edwards

Sheriff…Time to arrest members of Congress! | Scanned Retina Blog - 0 views

  • Title 26, USC, is a private law that applies to “U.S. corporate ‘citizens’”, all employees of the corporation identified at 28 USC, section 3002.
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      There is no explanation or quote to explain Title 26 and 28 USC, section 3002!  At the least we should be provided with a link here.
  • When the Sheriff seizes property from a Citizen under the non-authority of the IRS agent, the Sheriff has committed a Second Degree Felony, Conversion of Property.
  • Tyranny is defined as:
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  • Dominance through threat of punishment and violence, oppressive rule, abusive government, cruelty and injustice. What better definition than this fits the abusive IRS.
  • Title 12, USC
  • The Federal Reserve Notes in use are mere evidence of a debt.
  • The legal definition of “dollar” is “a gold or silver coin of a specific weight and with specific markings
  • The Federal Reserve Banking system is a private cartel that has usurped the authority of the Congress to coin Money.
  • Article I, section 8, we find that only Congress was given the authority “To coin money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.
  • The Federal Reserve Act is a “private law” passed by four Congressmen after the Congressional session closed in December of 1913.
  • The “Killing Blow”, the coup de grace[pronounced gra] was delivered upon the American People by Franklin D. Roosevelt in 1933 by removing the Gold Standard from the American economy.  FDR assisted the FRB in heisting the gold supply from this country right out from under our noses. 
  • If you still refuse to pay, the IRS will file a document called a “Notice of Federal Tax Lien” in the local County Clerk’s office.
  • a “Notice” is not the “Lien” itself. The “Lien” is a totally separate and distinct document from the “Notice”.
  • The County Clerk, through abysmal ignorance files the “Notice of Federal Tax Lien” as if it was an actual “Lien”. These are two separate and distinct documents. The County Clerk never requests the actual “Lien” from the IRS agent.
  • The Seventh Amendment of the Bill of Rights of this Constitution for the united States of America guarantees you the Right of Trial by Jury in any controversy where the amount shall exceed twenty dollars.
  • You have never owed any money to the IRS. The IRS is simply the enforcer, the debt collector for the Federal Reserve Banking System. However, because you are using a private credit system, wherein the medium of exchange are fancy pieces of paper called Federal Reserve Notes, you owe the Federal Reserve Bank a “user fee”.
  • All the current paycheck garnishments in the entire country could be stopped by having your employer request the above mentioned documents, to wit:
  • A copy of the Driver’s License of the IRS agent A copy of the “Pocket Commission” showing the authority of the IRS agent A copy of the assessment shown on form 23C against the American Citizen A copy of the “Abstract of the Court Judgment” that verifies that you had a trial by jury.
  • As Sheriff of San Miguel County, I will provide educational classes to the County Clerk and the employers who are currently garnishing wages and paychecks to identify areas where they may have broken the law and unwittingly stolen their employees Federal Reserve Notes and thus committed “Conversion of Property”, a second degree felony. Furthermore, I will work closely with the County Clerk through education and knowledge so that the Clerk can stop breaking the law and committing financial terrorism against the Citizens of San Miguel County.
  • When the Citizens of San Miguel County elect me as their new Sheriff in town, I will ban the IRS from San Miguel County, and if I catch an IRS agent within the boundaries of the county, without my permission, I will arrest them for TRESPASSING.
  • In the 1950’s, with the stroke of the pen, the BIR was transformed into the current notorious IRS and brought onto the 50 united States.
  • The IRS is formerly the Bureau of Internal Revenue (BIR) situated in and with authority only in the Philippine Islands (Trust Fund # 61), and moved into Puerto Rico (Trust Fund # 62).
  • Here it is in a nutshell. The IRS is a private, debt collection agency for the private banking system known as the Federal Reserve Bank. The IRS is not a government agency. I repeat, the IRS is not a government agency. Never has been, never will be.
  • This was done without any Congressional authority whatsoever.
  • the IRS is the “Private, debt collection agency for the private banking system known as the Federal Reserve Banks”.
  • Title 26, Internal Revenue Code, is the “Debt Collection Manual” for the IRS.  This manual has nothing with “Constitutitonal Rights”.
  • The IRS does not collect an “income tax”.  The IRS is simply collecting a user fee due to the Federal Reserve Banks because we, Americans, are using a private credit systeem.
  • Title 26, United States Code, is “non-positive” law, which means that no American Citizen is subject to it.  However, all “U.S. citizens” are subject to it.  In order to understand “U.S. citizen” you must go to 28 USC, section 3002.
  • Most American Citizens have voluntarily given up their Sovereignty in exchange for “immunities and privileges” of the 14th Amendment.
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    On accessing federal law, two sites to bookmark: Legal Information Institute, Cornell University, http://www.law.cornell.edu/lii/get_the_law Justia.com, http://www.justia.com/ A further resource, the Jureeka extension for Chrome and Firefox will automatically link legal citations in your brower's display to the corresponding web pages on the LII site. http://www.law.cornell.edu/jureeka/download/
Gary Edwards

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

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

Jim Kunstler's 2014 Forecast - Burning Down The House | Zero Hedge - 0 views

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    Incredible must read analysis. Take away: the world is going to go "medevil". It's the only way out of this mess. Since the zero hedge layout is so bad, i'm going to post as much of the article as Diigo will allow: Jim Kunstler's 2014 Forecast - Burning Down The House Submitted by Tyler Durden on 01/06/2014 19:36 -0500 Submitted by James H. Kunstler of Kunstler.com , Many of us in the Long Emergency crowd and like-minded brother-and-sisterhoods remain perplexed by the amazing stasis in our national life, despite the gathering tsunami of forces arrayed to rock our economy, our culture, and our politics. Nothing has yielded to these forces already in motion, so far. Nothing changes, nothing gives, yet. It's like being buried alive in Jell-O. It's embarrassing to appear so out-of-tune with the consensus, but we persevere like good soldiers in a just war. Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical "recovery" and the "shale gas miracle" on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations. Life in the USA is like living in a broken-down, cob-jobbed, vermin-infested house that needs to be gutted, disinfected, and rebuilt - with the hope that it might come out of the restoration process retaining the better qualities of our heritage.
Paul Merrell

The frightening promise of self-tracking pills | The Verge - 0 views

  • Some morning in the future, you take a pill — maybe something for depression or cholesterol. You take it every morning. Buried inside the pill is a sand-sized grain, one millimeter square and a third of a millimeter thick, made from copper, magnesium, and silicon. When the pill reaches your stomach, your stomach acids form a circuit with the copper and magnesium, powering up a microchip. Soon, the entire contraption will dissolve, but in the five minutes before that happens, the chip taps out a steady rhythm of electrical pulses, barely audible over the body's background hum. The signal travels as far as a patch stuck to your skin near the navel, which verifies the signal, then transmits it wirelessly to your smartphone, which passes it along to your doctor. There's now a verifiable record that the pill reached your stomach.
  • This is the vision of Proteus, a new drug-device accepted for review by the Food and Drug Administration last month. The company says it's the first in a new generation of smart drugs, a new source of data for patients and doctors alike. But bioethicists worry that the same data could be used to control patients, infringing on the intensely personal right to refuse medication and giving insurers new power over patients’ lives. As the device moves closer to market, it raises a serious question: Is tracking medicine worth the risk?
  • But not everyone's convinced that the ability to track pills will be good news for patients. The right to refuse treatment is an important, fragile principle in health care. Many are worried that tracking whether a pill is being consumed will be the first step towards punishing patients that don't comply. While doctors can’t force a patient to take a pill, court orders frequently mandate treatments involving specific drug regimens.
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  • Patient's biggest protection are medical privacy laws like HIPAA, which prevent medical data from being shared with anyone outside the hospital system. That would stop your boss or your parents from using Proteus to make sure you haven't fallen behind on your anti-anxiety medication. But those laws won't keep data out of the hands of healthcare providers, and Caplan is concerned the pill could also be used to enforce compliance. Insurers might offer a discounted rate on tracked pills, then hit patients with a $100 co-pay for every treatment they miss. It's not as oppressive as a court order, but the end result would be similar.
  • NYU bioethicist Arthur Caplan says he can imagine a judge using Proteus to enforce medication as part of a sentence: miss a pill, and your parole is revoked. "The temptation in the legal system to say, 'I can monitor you and make sure you're not a threat' is going to be huge," Caplan says. "Maybe that's good, maybe it's bad, but it's a different world than saying I consent to taking these pills." Those court orders are rare at the moment, since there’s no way to ensure a patient is taking medication outside of a controlled treatment facility — but as pill-tracking becomes easier, those measures could become much more common. That's particularly likely given the way Proteus is entering the market. The device's first partnership bundles it with Abilify, a powerful antipsychotic most commonly used to treat mood disorders, schizophrenia, and Tourette's. The most common effects are improved concentration and decreased hallucinations, but it comes with extreme side effects like increased suicide risk and a lower seizure threshold. It's most often prescribed in cases of severe mental illness, often in psychiatric institutions or as part of a court-mandated treatment program — exactly the scenarios bioethicists like Caplan are most worried about.
  • Still, those concerns are unlikely to keep Proteus out of the hands of doctors. The upcoming FDA approval will focus largely on safety and efficacy, leaving the larger ethical challenges to be solved after the drug is released to doctors and patients at large. With the technology available, it will be up to the courts to decide when it’s legal and ethical to use it. As far as Proteus is concerned, the power of the technology outweighs the risks. "There are challenges with bringing digital into any sector," a company representative said. "The reason to embrace the challenge in health care is because the need is so great."
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    Let's not forget that because Congress recently decided to revive Patriot Act sect. 215, the FBI is authorized to gather medical records for foreign intelligence and anti-terrorism purposes and according to ex-NSA chief scientist William Binney, the NSA in fact collects medical records and makes them available to law enforcement agencies without a warrant or court order.  http://motherboard.vice.com/read/i-toured-stasi-hq-with-nsa-whistleblowers  One judge has found that statute unconstitutional and may rule in the next few days. A court of appeals has found that the statute did not authorize bulk collection of telephone metadata records. An Oregon federal judge ruled that the DEA cannot obtain prescription records (in part because they are medical records) without an individualized search warrant, specifically ruling against the bulk collection argument. Maybe someday someone in federal government will get a clue that medical records are not one of the "haystacks" the NSA is permitted to create.  Involuntary medical treatment is another giant legal hairball. See https://en.wikipedia.org/wiki/Involuntary_treatment   
Gary Edwards

The Empire Takes a Hit: NSA Update - 2 views

........................................................................................ NSA Conversation with retired lawyer and Open Source legal expert, "Marbux". ...........................

Federal-Reserve-Bankster-Cartel NSA

started by Gary Edwards on 15 Jun 13 no follow-up yet
Paul Merrell

The Absolution of Jamie Dimon » CounterPunch: Tells the Facts, Names the Names - 0 views

  • Here are some of the good things JPMorgan has done in recent years.  In 2012 it reduced the compensation of Jamie Dimon, its chairman, president and CEO from $23 million to $11.5 million. That was his punishment for all the bad things the bank acknowledged that it had been doing while under his supervision. The bank acknowledged its sins by paying almost $20 billion in fines and penalties. Included in the $20 billion was $13 billion it agreed to pay in November 2013 that was described in the Wall Street Journal as “the biggest combination of fines and damages extracted by the U.S. government in a civil settlement with any single company.” For a bank the size of JPMorgan to pay $20 billion in fines as penance is a bit like the parishioner entering the confessional and seeking forgiveness from the supervisor of the man on the other side of the partition.  It has no effect on his future conduct. Nonetheless, paying the fines was a good thing since each fine was an act of contrition and those acts are always welcomed by those sitting in judgment on bad actors.   Here, however, are two bad things JPMorgan has been doing since leaving the federal government’s confessional at the end of 2013.
  • t increased Mr. Dimon’s compensation package by 74%, raising it to $20 million as a result of which Jamie’s compensation went from $31,506.84 per day to $54,794.52 per day. Since much of that is in restricted stock he cannot run out and spend it all.  Here is why that was a bad thing for the bank to have done.  It turns out that notwithstanding the $20 billion in penance paid, JPMorgan had discovered yet another way to make money at the expense of its customers.  It did this by ignoring part of the bankruptcy laws.
  • The bankruptcy law notwithstanding, some do.  Jamie Dimon’s bank is one of them. Just as it bundled subprime mortgages it had issued and sold them to investors at great profit to itself, according to a report in the New York Times, JPMorgan and other banks have been selling debts discharged in bankruptcy to outside investors.  Instead of showing that the debt of an individual to the bank has been discharged and is no longer collectible, the bank continues to described the debt as unpaid and that is how it appears on the borrower’s credit report.  If the borrower tries to get credit following a bankruptcy and the credit report does not disclose that the debt cannot be collected, a discharged debtor may be unable to get a new loan or a job or be otherwise adversely affected.  The bank, of course, makes money by selling the discharged debt to investors who are willing to take the chance that the debtor will continue to pay on the debt in order to get it removed from the credit report.
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  • Judge Robert D. Drain, a bankruptcy judge sitting in White Plains, New York, has confronted the issue of discharged debts being sold to investors by banks.  He observed that the buyers of those debts know that a bank “will refuse to correct the credit report to reflect the obligor’s bankruptcy discharge, which means that the debtor will feel significant added pressure to obtain a ‘clean’ report by paying the debt.” In refusing to throw out a lawsuit that has been filed in which the plaintiffs are seeking class action status for their claims against JPMorgan he observed that “the complaint sets forth a cause of action that Chase is using the inaccuracy of its credit reporting on a systematic basis to further its business of selling debts and its buyer’s collection of such debt.”
  • A U.S. Senate report released November 19, 2014, was highly critical of JPMorgan and other banks for, among other things, exceeding federal limits on commodity holdings.  Whether the activities described in the report will result in JPMorgan or any of the other banks paying a fine or Jamie Dimon suffering a salary reduction only time will tell. One thing we know without waiting for events to unfold.  JPMorgan stock is a good investment. The bank is always looking for creative ways to make money.
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

Ron Wyden: the future of NSA programs is being determined now | World news | theguardia... - 0 views

  • Privacy advocates pressed Barack Obama to end the bulk collection of Americans’ communications data at a series of meetings at the White House on Thursday, seizing their final chance to convince him of the need for meaningful reform of sweeping surveillance practices. A key US senator left one meeting at the White House with the impression that President Obama has yet to decide on specific reforms. “The debate is clearly fluid,” senator Ron Wyden of Oregon, a longtime critic of bulk surveillance, told the Guardian after the meeting. “My sense is the president, and the administration, is wrestling with these issues,” Wyden said. Other groups were meeting presidential aides on Thursday afternoon, including the representatives of the American Civil Liberties Union, the Electronic Privacy Information Center (Epic) and the Open Technology Institute. Expectations were mounting that Obama will propose changing the National Security Agency’s controversial database of all domestic phone call records.
  • Wyden, a member of the Senate intelligence committee, said he viewed the coming days and weeks, ahead of an announcement by Obama about the future scope of surveillance, to be decisive for the debate triggered by NSA whistleblower Edward Snowden.  “What I’d say to Americans is that the future of these programs is being determined now,” Wyden said. “For those like me, who believe that security and liberty are not mutually exclusive, this is the time to weigh in.”
  • Speaking after the meeting with legislators, White House spokesman Jay Carney described the conversation as an opportunity for Obama to “solicit their input”, rather than brief them on his decisions about the future scope of surveillance activities.  The White House held meetings on Wednesday with the leadership of the intelligence agencies, including NSA director Keith Alexander and director of national intelligence James Clapper, as well as with Obama’s privacy and civil liberties advisory group. On Friday, Obama’s staff is expected to meet representatives of major technology firms, ostensibly to continue deliberations.  Shortly before the legislators’ meeting began, two of the attendees, House intelligence committee leaders Mike Rogers of Michigan and Dutch Ruppersberger of Maryland, issued a statement describing a classified Defense Department report that they said alleged that Snowden’s leaks –which they said totaled 1.7m intelligence files and impacted intelligence operations of all military branches – could “gravely impact” US national security. 
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  • A spokesman for the Defense Intelligence Agency, which spearheaded the report, said the report was an “initial assessment”, and the work of the Information Review Task Force was “ongoing”. But neither the House intelligence committee leaders nor the DIA would provide additional information substantiating the allegations of Snowden’s impact.  “The report is classified and is not releasable,” said the DIA spokesman, who would not agree to be quoted by name. The classified interim assessment was delivered to the House and Senate intelligence committees on 6 January, and the DIA spokesman said there is no deadline for a final report, nor a mandate to make such a report public. 
  • Snowden's attorney, Ben Wizner, described the report as an attack on the journalism produced by the Snowden disclosures. "In truth, Mike Rogers is only indirectly attacking Snowden. He’s directly attacking the journalists who have reported on these revelations. There is not a shred of evidence that any adversary has had any access to any document other than those published by journalists, and they haven't contradicted that," Wizner told the Guardian. "We shouldn’t have any confidence in the accuracy of this innuendo. The government has shown time and again they have very little idea of what Snowden had access to."
  • Speaking outside the White House after a separate meeting with Obama, senator Rand Paul also stepped up his calls for government leniency toward Snowden, contrasting his treatment with Clapper, who has admitted misleading the Senate about surveillance. "Those who call for some sort of frontier justice for [Snowden] need to understand the laws needs to apply equally," Paul told reporters. "James Clapper by all accounts committed perjury which is punishable by five years in prison and if you want to throw the book at Snowden, it's a little hard to say 'Oh, but we're not going to do anything about James Clapper lying to Congress.'"
  • Asked if he was making a direct comparison, Paul added: "It's not my job to compare them or contrast what they did, but what James Clapper did has greatly harmed the credibility of the intelligence agencies ... he has really greatly damaged the intelligence community. It's arguable." After meeting with Obama, Wyden saw the debate over surveillance winding toward a conclusion. “This is crunch time. The decisions are going to be made in the very near future,” Wyden said. “The president made clear he wanted to hear from us. I’m going to keep urging members of Congress and the public to stand on the side of real reform and end intrusive surveillance practices that in effect violate the liberties of our people without making us safer.”
  •  
    Wyden  says it's time to get involved. Wyden is one of my senators and is about to get an email informing him that if he believes Barack Obama is the person who will decide this issue, he'd better think that over a bit more.  
Gary Edwards

The Daily Bell - Doug Casey on the Continuing Debasement of Money, Language and Banking... - 0 views

  • This isn't going to last because the way you get wealthy is by producing more than you consume and saving the difference – not by consuming more than you produce, and borrowing the difference. With the Fed keeping interest rates at artificially low levels, hoping to increase consumption, they're making it very foolish to save – when you get ½% or 1% on your savings. So people are saving less and they're borrowing more than they otherwise would. This is a formula for making things worse, not better.
  • They are, idiotically, doing exactly the opposite of what they should be.
  • In point of fact, the Fed should be abolished; the market, not bureaucrats, should determine interest rates. We wouldn't be in this pickle to start with if the government wasn't involved in the economy.
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  • The Chinese, the Japanese – everybody is selling, trying to pass the Old Maid card of US Government debt, which represents return–free risk. Nobody other than the Fed is buying, and interest rates would skyrocket if they stopped. The more QE there is, the more distortions it will cause, however, making for a bigger disaster the longer it goes on.
  • Will the Fed continue to inflate the money supply? Doug Casey: They have to, because with the huge amount of debt in the world – and the amount of debt in the world has increased something like 40 or 50% just since the Greater Depression started – if they don't keep increasing the amount of money in the world then nobody's going to be able to service the huge amount of debt that is out there. So I don't see anything changing in the years to come. They've truly painted themselves into a corner. They're caught between Scylla and Charybdis, and we don't have Odysseus steering the ship of state.
  • Let me say, again, that the Fed serves no useful purpose and it should be abolished. Central banks create "super money" by buying government or other debt with new currency units that they credit to the sellers' accounts at commercial banks. That's the actual engine of inflation.
  • But it's greatly compounded in the commercial banking system through fractional reserve lending – which would not be possible without a central bank. Fractional reserve lending allows banks to multiply the money supply several times.
  • If $100 of Fed super money, freshly created, is deposited in a commercial bank like Chase or Citibank, then $90 can be lent out with a 10% reserve, the current number. That money is redeposited. They'll then lend out 90% of that $90, or $81, and then 90% of that $81, so it multiplies.
  • Central banking and fractional reserve lending go hand-in-hand.
  • Without a central bank, any bank that engaged in fractional reserve banking would be considered guilty of fraud and, when discovered, would be punished by a bank run, followed by criminal charges. The point to be made here is that the entire banking system today is totally unsound and totally corrupt.
  • In a sound banking system you have two types of deposits – checking account (or demand) deposits, and savings account (or time) deposits. They are completely different businesses. With demand deposits, you pay the bank to store your money securely, and write checks against it. A bank should no more lend out demand deposit money than Allied Storage should lend out the furniture you're paying them to store.
  • Savings accounts are completely different. Here you lend money to a bank, perhaps at 3%, and they relend it at 6%, making 3% to cover costs, risks and profits. A sound bank not only has to match the maturities of its deposits with the maturities of its loans, but must insure loans are both highly secured and self-liquidating.
  • These principles have been totally lost. Today banks operate as hedge funds.
  • As an aside, if someone were to set up a well-capitalized 100% reserve bank in a tax haven, especially using gold as an alternative currency, it would be immensely successful in the years to come – when most all conventional banks will fail.
  • By all historical, normal parameters, the stock market is greatly overvalued.
  • The trillions of new currency units that the Fed is creating are creating bubbles, and one of them is in the stock market. The biggest bubble, of course, is in the bond market – that's a super bubble.
  • Not only does the dollar have no real value but the banks you keep it in are all insolvent.
  • There are few sound investments out there. Today there are no investments; there are only speculations.
  • From the economist's point of view, the bubbles created by central banking are a disaster, but from a speculator's point of view they're a godsend. It's becoming harder and harder to be an investor; I define an investor as someone who allocates capital to productive business. It's hard to be an investor because you now have to spend more money on lawyers than on engineers and workers if you want to produce something. You're increasingly forced to be a speculator in today's climate.
  • Stock and bond markets all over the world are overpriced – with the exception of Russian stocks right now; they could be a very interesting speculation. I wouldn't touch anything in China yet, because all the Chinese banks are going to go bust.
  • The Chinese have been more profligate inflating the yuan than the Americans have been with the dollar. It's fantastic what the Chinese have done since Deng liberalized the economy in the early '80s, but now's not a time to be in their markets.
  • You've got to remember there are two types of people in the world: people who want to control material reality and people who want to control other people.
  • It's that second type who go into politics. They play games – here it's called the Great Game, which dignifies it in a way it shouldn't be – with other people's lives and property. It's been this way ever since the state was created about 5,000 years ago, and I don't think you should play games with other people's lives.
  • On the bright side, there are more scientists and engineers alive today than in all of human history put together, and so technology is advancing more rapidly than ever for that reason. That's a huge plus.
  • The second good thing is that the average person, at least those who aren't on welfare, tries to produce more than he consumes. That creates capital.
  • But I'm afraid that Western civilization reached its peak before World War I. World War I destroyed a huge amount of capital and, more importantly, it changed the moral bases of so many things.
  • Then World War II institutionalized the State as the most important part of society – which is perverse, because the state is actually the enemy of civil society.
  • I think Western civilization reached its peak in 1913, when it reached its maximum geographical extent. That was coincidental with the peak of its technological and philosophical influence on the world, much the way the Roman Empire reached its peak at about the end of the first century, then went down, slowly at first and then quickly. That's what's happening to the West.
  • Relative to the rest of the world, and contribution to world production, our piece of the economic pie is getting smaller and smaller. If we have another serious war it would be absolutely smaller, and the final nail in the coffin. Meanwhile, the US, with its bloated military, is just itching for another war. It's out of control, and unlikely to change at this point. That's a big trend that is in motion that I think is going to stay in motion.
  • Europe is in particularly bad shape. The place is a fascist/socialist disaster.
  • It was possible for the average European to keep his head above water through tax evasion in the past, but now those governments have broken bank secrecy everywhere, and it will destroy a lot of capital.
  • The "nation-state" is a really stupid and dysfunctional idea, and I'm glad it's on its way out.
  • That said, even the US, which from a cultural point of view is as much of a country as any place in the world, should actually break up into at least five or six regions.
  • Canada should break up into at least five or six regions initially.
  • I don't think politically; politics is the problem, not the solution. I think that the ideal solution is for every individual to opt out of the current system. When they give a war, you don't come. When they give a tax, you don't pay. When they give an election, you don't vote. You even try not to use their currency and their banking system. T
  • he ideal thing is to let the system collapse under its own weight as opposed to starting a new political party and then continuing to act politically, which is to say to use force on other people.
  • Market risk is huge today, but political risk is even bigger. One indication of that was, when the banks in Cyprus went bust some months ago, the government essentially confiscated everybody's account above 100,000 euros, in what they called a "bail-in."
  • You need several options. It seems like people haven't learned anything from what happened in Russia in 1917, Germany in 1933, China in 1948, Cuba in 1959, or Vietnam in 1975. Rwanda, Cambodia, Yugoslavia, Zimbabwe, Ukraine, Syria ... there are lots of examples and these things can and will eventually happen almost everywhere. When the chimpanzees go crazy, you don't want to be where they are. You've got to have a Plan B. You've got to have a crib out of that political jurisdiction. Acting like a plant, and staying put, isn't a good survival strategy for a human.
  •  
    "Doug Casey: I don't see a real recovery until they stop debasing the currency, radically cut government spending and taxation and eliminate most regulation. In other words, cease doing the things that caused this depression. And that's not going to happen until there's a collapse of the current order. Things have cyclically improved since the height of the crisis of 2008-09. The trillions of currency units created by the Federal Reserve have jammed the stock market higher and kept the big banks from going under. What surprises me is that retail prices have not moved as significantly as I would have expected. The reason, I believe, is that most of that money is still sitting in financial institutions. It has gone into cash out of fear, into stocks because they represent real wealth with earning power and into various speculative assets like artwork and collectible cars. Real estate has recovered somewhat, not because of strong fundamentals but strictly because of money creation. This isn't going to last because the way you get wealthy is by producing more than you consume and saving the difference - not by consuming more than you produce, and borrowing the difference. With the Fed keeping interest rates at artificially low levels, hoping to increase consumption, they're making it very foolish to save - when you get ½% or 1% on your savings. So people are saving less and they're borrowing more than they otherwise would. This is a formula for making things worse, not better. They are, idiotically, doing exactly the opposite of what they should be. Although, I hasten to add, I hate to pontificate on what the Fed "should" do. In point of fact, the Fed should be abolished; the market, not bureaucrats, should determine interest rates. We wouldn't be in this pickle to start with if the government wasn't involved in the economy. In fact, if it wasn't for the state, I suspect we'd all have a vastly higher standard of living, and would be colonizing the Moon, Mars and
Paul Merrell

Boycott, Divest and Sanction Corporations That Feed on Prisons  :    Informat... - 0 views

  • All attempts to reform mass incarceration through the traditional mechanisms of electoral politics, the courts and state and federal legislatures are useless. Corporations, which have turned mass incarceration into a huge revenue stream and which have unchecked political and economic power, have no intention of diminishing their profits. And in a system where money has replaced the vote, where corporate lobbyists write legislation and the laws, where chronic unemployment and underemployment, along with inadequate public transportation, sever people in marginal communities from jobs, and where the courts are a wholly owned subsidiary of the corporate state, this demands a sustained, nationwide revolt. “Organizing boycotts, work stoppages inside prisons and the refusal by prisoners and their families to pay into the accounts of phone companies and commissary companies is the only weapon we have left,” said Amos Caley, who runs the Interfaith Prison Coalition, a group formed by prisoners, the formerly incarcerated, their families and religious leaders.
  • These boycotts, they said, will be directed against the private phone, money transfer and commissary companies, and against the dozens of corporations that exploit prison labor. The boycotts will target food and merchandise vendors, construction companies, laundry services, uniforms companies, prison equipment vendors, cafeteria services, manufacturers of pepper spray, body armor and the array of medieval instruments used for the physical control of prisoners, and a host of other contractors that profit from mass incarceration. The movement will also call on institutions, especially churches and universities, to divest from corporations that use prison labor. The campaign, led by the Interfaith Prison Coalition, will include a call to pay all prisoners at least the prevailing minimum wage of the state in which they are held. (New Jersey’s minimum wage is $8.38 an hour.) Wages inside prisons have remained stagnant and in real terms have declined over the past three decades. A prisoner in New Jersey makes, on average, $1.20 for eight hours of work, or about $28 a month. Those incarcerated in for-profit prisons earn as little as 17 cents an hour. Over a similar period, phone and commissary corporations have increased fees and charges often by more than 100 percent. There are nearly 40 states that allow private corporations to exploit prison labor. And prison administrators throughout the country are lobbying corporations that have sweatshops overseas, trying to lure them into the prisons with guarantees of even cheaper labor and a total absence of organizing or coordinated protest.
  • Corporations currently exploiting prison labor include Abbott Laboratories, AT&T, AutoZone, Bank of America, Bayer, Berkshire Hathaway, Cargill, Caterpillar, Chevron, the former Chrysler Group, Costco Wholesale, John Deere, Eddie Bauer, Eli Lilly, ExxonMobil, Fruit of the Loom, GEICO, GlaxoSmithKline, Glaxo Wellcome, Hoffmann-La Roche, International Paper, JanSport, Johnson & Johnson, Kmart, Koch Industries, Mary Kay, McDonald’s, Merck, Microsoft, Motorola, Nintendo, Pfizer, Procter & Gamble, Quaker Oats, Sarah Lee, Sears, Shell, Sprint, Starbucks, State Farm Insurance, United Airlines, UPS, Verizon, Victoria’s Secret, Wal-Mart and Wendy’s.
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  • “Prisoner telephone rates in New Jersey are some of the highest in the country,” Caley said. “Global Tel Link charges prisoners and their families $4.95 for a 15-minute phone call, which is about two and a half times the national average for local inmate calling services.”
  • Prison phone services are a $1.2-billion-a-year industry. Prisoners outside New Jersey are charged by Global Tel Link, which makes about $500 million a year, as much as $17 for a 15-minute phone call. A call of that duration outside a prison would cost about $2. If a customer deposits $25 into a Global Tel Link phone account, he or she must pay an additional service charge of $6.95. And Global Tel Link is only one of several large corporations that exploit prisoners and their families. JPay is a corporation that deals in privatized money transfers to prisoners. It controls money transfers for about 70 percent of the prison population. The company charges families that put money into prisoners’ accounts additional service fees of as much as 45 percent. JPay generates more than $50 million a year in revenue. The Keefer Group, which controls prison commissaries in more than 800 public and private prisons, and which often charges prisoners double what items cost outside prison walls, makes $41 million a year in profit.
  • Prisons, to swell corporate profits, force prisoners to pay for basic items including shoes. Prisoners in New Jersey pay $45 for a pair of basic Reebok shoes—almost twice the average monthly wage. If a prisoner needs an insulated undergarment or an extra blanket to ward off the cold at night he must buy it. Packages from home, once permitted, have been banned to force prisoners to buy grossly overpriced items at the commissary or company-run store. Some states have begun to charge prisoners rent. This gouging is burying many prisoners and their families in crippling debt, debt that prisoners carry when they are released from prison. The United States has 2.3 million people in prison, 25 percent of the world’s prison population, although we are only 5 percent of the world’s population. We have increased our prison population by about 700 percent since 1970. Corporations control about 18 percent of federal prisoners and 6.7 percent of all state prisoners. And corporate prisons account for nearly all newly built prisons. Nearly half of all immigrants detained by the federal government are shipped to corporate-run prisons. And slavery is legal in prisons under the 13th Amendment of the U.S. Constitution. It reads: “Neither slavery nor involuntary servitude, except as punishment for crime whereof the party shall have been duly convicted, shall exist within the United States.”
  • Vast sums are at stake. The for-profit prison industry is worth $70 billion. Corrections Corporation of America (CCA), the largest owner of for-profit prisons and immigration detention facilities in the country, had revenues of $1.7 billion in 2013 and profits of $300 million. CCA holds an average of 81,384 inmates in its facilities on any one day. Aramark Holdings Corp., a Philadelphia-based company that contracts through Aramark Correctional Services to provide food to 600 correctional institutions across the United States, was acquired in 2007 for $8.3 billion by investors that included Goldman Sachs. And, as in the wider society, while members of a tiny, oligarchic corporate elite each are paid tens or even hundreds of millions of dollars annually, the workers who generate these profits live in misery.  “It is an abomination that prisoners are paid 22 cents an hour, $1.20 cents a day,” Larry Hamm told the Newark meeting. “Every prisoner should get the minimum wage of New Jersey, $8.38 per hour.”
  •  
    Why pay a liveable wage to American workers if you can get prison labor for less than market prices in Bangla Desh? The prison telephone racket has bothered me for many years. The FCC authorized no-limit telephone charges for prisoners and their families on the simplistic grounds of, "well, they prisoners who have reduced civil rights anyway. But it ignored that most prison phone calls are collect calls to families on the outside, who are not prisoners and still have their full civil rights. The for-profit prison industry is a prime example of not thinking things through before privatizing a formerly government function. Privatization creates a lobby for the industry, as Americans have learned all to well with the privatization of most Dept. of Defense work other than actual combat.   Already, for profit prison industries are showing up in state legislatures to demand longer prison sentences. They were the prime movers behind the "mandatory minimum sentence" movement, which has stuffed prisons to overflowing. 
Paul Merrell

Salvadoran General Deemed Deportable In the Absence of Criminal Charges | Just Security - 0 views

  • The Board of Immigration Appeals (BIA) ruled last week that General Carlos Eugenio Vides-Casanova could be removed to El Salvador on account of his participation in human rights abuses in the 1980s when he was head of the National Guard (1979–1983) and then Minister of Defense (1983–1989). (The judgment is here.) In so ruling, the BIA affirmed a February 2012 opinion by an Immigration Judge, which — apparently for privacy reasons — was not released by the Justice Department until April 2013 after The New York Times filed a request under the Freedom of Information Act. Vides-Casanova has been found deportable under the Intelligence Reform and Terrorism Prevention Act, 8 U.S.C. § 1127(a)(4)(D) (passed in 2004 but rendered retroactive), which is intended to bar individuals who participated in genocide, Nazi persecution, torture, or summary execution from enjoying safe haven in the United States.
  • The Vides-Casanova decision reiterated D-R-’s determination that: inadmissibility under … the Act is established where it is shown that an alien with command responsibility knew or should have known that his subordinates committed unlawful acts covered by the statute and failed to prove that he took reasonable measures to prevent or stop such acts or investigate in a genuine effort to punish the perpetrators. The BIA’s opinion constitutes precedent and is binding upon all Immigration Judges. In reaching these results, both sets of adjudicators rejected Vides-Casanova’s claims that:  the human rights violations were the result of “rogue units” acting autonomously and his conduct was “consistent with the ‘official policy’ of the United States” such that it would be unfair under principles of equitable estoppel to remove him.
  •  
    Consistent with the "offficial policy" of the U.S. isn't a defense, but the troubling part is that it's true. Vides-Casnova was a participant in a U.S. program that coodinated the intelligence gathering and distribution in a secure U.S. government communications network housed in Panama under cover of the notorious School of Americas. It was a regional coordinated effort based on ideology to identify, torture, terrorize, round up, and disappear anyone suspected of leaning to the political left. Welcome to the world of Operation Condor. Tens of thousands of Latin Americans were tortured and killed. CIA also coordinated the overthrow of many Latin American nations and their replacement by military juntas.  A lot of information about Operation Condor was released in the late 90s by CIA and the State Dept. VP Joe Biden recently delivered some more to Uruguay for use in its truth and reconcilation work.  If you'd like a quick overview of Operation Condor, see https://www.globalpolicy.org/component/content/article/168/28173.html There are reasons why lots of leaders in Latin America don't trust the U.S. and why they excluded the U.S. from a 12-nation alliance.  The latest failed U.S. coup attempt in Venezuela earlier this year just poured gasoline on that fire.  The CIA has been at it for a very long time. It knew how to kidnap, torture, and asassinate people on a far grander scale long before Bush the Younger and his collection of war criminals got involved. 
Paul Merrell

Watchdog Group Sues Trump Administration, Seeking Legal Rationale Behind Syria Strike -... - 0 views

  • A month after President Trump ordered a military strike on the Syrian regime as punishment for using chemical weapons, his administration has yet to offer a rationale for what lawful authority he had to carry out the attack.Now, a government watchdog group run by former Obama administration lawyers is suing to force the Trump administration to disclose its legal theory — or concede that it launched the April 6 attack without thinking about the law. While the attack attracted bipartisan support as a political and policy matter, its legal basis was disputed.The United States had no self-defense rationale, and neither Congress nor the United Nations Security Council authorized the attack, raising questions about the scope and limits of Mr. Trump’s power as a matter of domestic law and the United States’ power as a matter of international law. The Trump administration has not answered them.On Monday, the watchdog group, Protect Democracy, filed a lawsuit under the Freedom of Information Act for all emails, memos and other records discussing Mr. Trump’s legal authority to launch the strike.
Paul Merrell

Obama's crackdown views leaks as aiding enemies of U.S. | McClatchy - 0 views

  • Even before a former U.S. intelligence contractor exposed the secret collection of Americans’ phone records, the Obama administration was pressing a government-wide crackdown on security threats that requires federal employees to keep closer tabs on their co-workers and exhorts managers to punish those who fail to report their suspicions. President Barack Obama’s unprecedented initiative, known as the Insider Threat Program, is sweeping in its reach. It has received scant public attention even though it extends beyond the U.S. national security bureaucracies to most federal departments and agencies nationwide, including the Peace Corps, the Social Security Administration and the Education and Agriculture departments. It emphasizes leaks of classified material, but catchall definitions of “insider threat” give agencies latitude to pursue and penalize a range of other conduct.
  • Government documents reviewed by McClatchy illustrate how some agencies are using that latitude to pursue unauthorized disclosures of any information, not just classified material. They also show how millions of federal employees and contractors must watch for “high-risk persons or behaviors” among co-workers and could face penalties, including criminal charges, for failing to report them. Leaks to the media are equated with espionage.
  • The program could make it easier for the government to stifle the flow of unclassified and potentially vital information to the public, while creating toxic work environments poisoned by unfounded suspicions and spurious investigations of loyal Americans, according to these current and former officials and experts. Some non-intelligence agencies already are urging employees to watch their co-workers for “indicators” that include stress, divorce and financial problems.
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  • Employees must turn themselves and others in for failing to report breaches. “Penalize clearly identifiable failures to report security infractions and violations, including any lack of self-reporting,” the strategic plan says.The Obama administration already was pursuing an unprecedented number of leak prosecutions, and some in Congress – long one of the most prolific spillers of secrets – favor tightening restrictions on reporters’ access to federal agencies, making many U.S. officials reluctant to even disclose unclassified matters to the public. The policy, which partly relies on behavior profiles, also could discourage creative thinking and fuel conformist “group think” of the kind that was blamed for the CIA’s erroneous assessment that Iraq was hiding weapons of mass destruction, a judgment that underpinned the 2003 U.S. invasion. “The real danger is that you get a bland common denominator working in the government,” warned Ilana Greenstein, a former CIA case officer who says she quit the agency after being falsely accused of being a security risk. “You don’t get people speaking up when there’s wrongdoing. You don’t get people who look at things in a different way and who are willing to stand up for things. What you get are people who toe the party line, and that’s really dangerous for national security.”
  • The program, however, gives agencies such wide latitude in crafting their responses to insider threats that someone deemed a risk in one agency could be characterized as harmless in another. Even inside an agency, one manager’s disgruntled employee might become another’s threat to national security. Obama in November approved “minimum standards” giving departments and agencies considerable leeway in developing their insider threat programs, leading to a potential hodgepodge of interpretations. He instructed them to not only root out leakers but people who might be prone to “violent acts against the government or the nation” and “potential espionage.”
  • The Department of Education, meanwhile, informs employees that co-workers going through “certain life experiences . . . might turn a trusted user into an insider threat.” Those experiences, the department says in a computer training manual, include “stress, divorce, financial problems” or “frustrations with co-workers or the organization.”An online tutorial titled “Treason 101” teaches Department of Agriculture and National Oceanic and Atmospheric Administration employees to recognize the psychological profile of spies.
Gary Edwards

Why the Ruling Class is So Upset About Edward Snowden » CounterPunch: Tells t... - 0 views

  • the networks now compete with one another to generate outrage—not at the spying, mind you, but at Snowden for violating the law.
  • O’Reilly’s current position is that while a hero, Snowden should be placed on trial and judged by a jury. Which is to say, he should be apprehended abroad, brought back in handcuffs and treated to the same benefits of the U.S. judicial system enjoyed by a Bradley Manning or a Guantanamo detainee.
  • He broke the law! He told us: “Any analyst at any time can target anyone.”
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  • “He took an oath,” thunders Dianne Feinstein
  • chair of the Senate Intelligence Committee (and thus someone complicit in the spying programs).
  • What she means by this is that he broke his pledge, made when he became an employee of the CIA contractor Booz Allen Hamilton—which helps handle the massive effort to monitor all of us daily—to conceal any secrets he obtained as an employee.
  • She is of course not referring to the oath he made at the same time, to uphold the Constitution of the United States, which says very clearly that “the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated…”
  • Snowden has not merely revealed that the U.S. government has forced service providers Microsoft, Yahoo, Google, Facebook, PalTalk, AOL, Skype, YouTube and Apple to share all their records with itself, in the form of mega-data that can only be accessed for content following the issuance of warrants from (secret) courts, in order to thwart real or imagined terrorist plots. He hasn’t merely shown that the NSA intercepts 1.7 billion electronic records every day (in order, of course, to thwart the terrorists). He has charged the following:
  • The FBI’s “Counterintelligence Program” (COINTELPRO), active from 1956 to 1971, collected information through wiretaps and other means with the specific objective of destroying civil rights and left-wing organizations.
  • Snowden indicates that those with that power can indeed gain access to what Bill Clinton recently called the “meat” of your communications.
  • That is, every word you’ve spoken on the phone recently, or maybe for several years; or test-messaged or instant-messaged online; can be accessed by government “analysts” at their whim.
  • in 2008, ABC News revealed that National Security Agency staffers enjoyed monitoring satellite phone sex involving U.S. officers in Iraq. It’s worth quoting at length.
  • “‘These were just really everyday, average, ordinary Americans who happened to be in the Middle East, in our area of intercept and happened to be making these phone calls on satellite phones,’ said Adrienne Kinne, a 31-year old US Army Reserves Arab linguist assigned to a special military program at the NSA’s Back Hall at Fort Gordon from November 2001 to 2003. Kinne described the contents of the calls as ‘personal, private things with Americans who are not in any way, shape or form associated with anything to do with terrorism.’ [...] Another intercept operator, former Navy Arab linguist, David Murfee Faulk, 39, said he and his fellow intercept operators listened into hundreds of Americans picked up using phones in Baghdad’s Green Zone from late 2003 to November 2007. ‘Calling home to the United States, talking to their spouses, sometimes their girlfriends, sometimes one phone call following another,’ said Faulk. [...] ‘Hey, check this out,’ Faulk says he would be told, ‘there’s good phone sex or there’s some pillow talk, pull up this call, it’s really funny, go check it out. It would be some colonel making pillow talk and we would say, ‘Wow, this was crazy,’ Faulk told ABC News.”
  • If that’s the way NSA analysts could deal with U.S. military officers in Iraq—fellow cogs in the system, fighting on behalf of U.S. imperialism—how much respect do you suppose they have for you and your privacy? For your security from their searches, their violations?
  • But the main issue is not your protection from phone-sex interlopers, but protection from those who want to do you harm.
  • “Any analyst at any time can target anyone. Any selector, anywhere… I, sitting at my desk, certainly had the authorities to wiretap anyone, from you or your accountant, to a federal judge, to even the President…”
  • One of its stated missions was to use surveillance on activists to release negative personal information to the public to discredit them. In many instances the agents succeeded, and they ruined lives. And their abilities to do so pale in comparison with the abilities of Obama’s NSA.
  • the Bush administration would be willing to learn a thing or two about domestic spying from the experts of the former Stasi. What ruling elite has ever gained more total information awareness about its citizens than the old German Democratic Republic?  And done it with such elegant legal scaffolding?
  • As historians such as Katherine Pence and Paul Betts have shown, the GDR authorities operated within scrupulously observed legal constraints. One sees this in the film Das Leben der Anderen (The Lives of Others) produced in the reunited Germany in 2006. It depicts the surveillance culture of the former East Germany, leaving the viewer nauseated.
  • Everything according to law.
  • I thought of that film while reading the lead Boston Globe editorial on June 13. It concludes that the “policies that [Snowden revealed], however objectionable, are properly authorized” while Snowden himself “broke the law.”
  • It all, in my humble opinion, boils down to thi
  • U.S. to World: “You Must View Snowden as a Criminal, and Give Him Back”
  • Suddenly, the Cold War has reappeared. Snowden is charged with espionage, some of his critics alleging that he’s in the service of the PRC and/or Russia or other “enemies.” It in fact appears that Beijing and Moscow both were taken by surprise by this episode, and that both have attempted to handle Snowden’s unexpected presence carefully to avoid annoying the U.S.
  • The entirety of the ruling elite and the journalistic establishment are keen on defending the programs Snowden has exposed; keen on punishing him for his whistle-blowing; determined to vilify him as a punk, narcissist, egoist, attention-hungry ne’er-do-well (anything but a thoughtful man who made a moral choice that has enlightened people about the character of the U.S. government); feverishly working on damage control while anticipating more damning revelations; and determined to get those four laptops with their incriminating content back into the bosom of the national security state.
  • Thus, you see, he’s not a whistle-blower but a criminal.
  • No, there are us, and there are them. The tiny power elite that controls the mainstream press and cable channels, the corporations that dutifully hand over mega-data to the state (and then deny doing so to allay consumer outrage), the twin political parties, are sick to their stomachs that they’ve been so exposed. We in our turn should feel, if not terrorized, nauseated.
  •  
    This is a fun and enlightening read.  Extremely well written!  Maybe the most complete statement of both the facts of the Snowden - NSA disclosure event, and the mix of heartache and anger I feel about it.  Gut wrenching, nauseating and sick to my soul over what these clowns are doing to this great Republic, the Constitution, and the brief history of individual liberty this country represents.  Nicely written summary.
Paul Merrell

Asia Times Online :: Central Asian News and current affairs, Russia, Afghanistan, Uzbek... - 0 views

  • Here's the US's exceptionalist promotion of "democracy" in action; Washington has recognized a coup d'etat in Ukraine that regime-changed a - for all its glaring faults - democratically elected government. And here is Russian President Vladimir Putin, already last year, talking about how Russia and China decided to trade in roubles and yuan, and stressing how Russia needs to quit the "excessive monopoly" of the US dollar. He had to be aware the Empire would strike back. Now there's more; Russian presidential adviser Sergey Glazyev <a href='http://asianmedia.com/GAAN/www/delivery/ck.php?n=a9473bc7&cb=%n' target='_blank'><img src='http://asianmedia.com/GAAN/www/delivery/avw.php?zoneid=36&cb=%n&n=a9473bc7&ct0=%c' border='0' alt='' ></a> told RIA Novosti, "Russia will abandon the US dollar as a reserve currency if the United States initiates sanctions against the Russian Federation." So the Empire struck back by giving "a little help" to regime change in the Ukraine. And Moscow counter-punched by taking control of Crimea in less than a day without firing a shot - with or without crack Spetsnaz brigades (UK-based think tanks say they are; Putin says they are not).
  • Putin's assessment of what happened in Ukraine is factually correct; "an anti-constitutional takeover and armed seizure of power". It's open to endless, mostly nasty debate whether the Kremlin overreacted or not. Considering the record of outright demonization of both Russia and Putin going on for years - and now reaching fever pitch - the Kremlin's swift reaction was quite measured. Putin applied Sun Tzu to the letter, and now plays the US against the EU. He has made it clear Moscow does not need to "invade" Ukraine. The 1997 Ukraine-Russia partition treaty specifically allows Russian troops in Crimea. And Russia after all is an active proponent of state sovereignty; it's under this principle that Moscow refuses a Western "intervention" in Syria. What he left the door open for is - oh cosmic irony of ironies - an American invention/intervention (and that, predictably, was undetectable by Western corporate media); the UN's R2P - "responsibility to protect" - in case the Western-aligned fascists and neo-nazis in Ukraine threaten Russians or Russian-speaking civilians with armed conflict. Samantha Power should be proud of herself.
  • The "West" once again has learned you don't mess with Russian intelligence, which in a nutshell preempted in Crimea a replica of the coup in Kiev, largely precipitated by UNA-UNSO - a shady, ultra-rightwing, crack paramilitary NATO-linked force using Ukraine as base, as exposed by William Engdahl. And Crimea was an even murkier operation, because those neo-nazis from Western Ukraine were in tandem with Tatar jihadis (the House of Saud will be heavily tempted to finance them from now on). The Kremlin is factually correct when pointing out that the coup was essentially conducted by fascists and ultra-right "nationalists" - Western code for neo-nazis. Svoboda ("Freedom") party political council member Yury Noyevy even admitted openly that using EU integration as a pretext "is a means to break our ties with Russia." Western corporate media always conveniently forgets that Svoboda - as well as the Right Sector fascists - follow in the steps of Galician fascist/terrorist Stepan Bandera, a notorious asset of a basket of "Western" intel agencies. Now Svoboda has managed to insert no less than six bigwigs as part of the new regime in Kiev.
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  • And even as 66% of Russian gas exported to the EU transits through Ukraine, the country is fast losing its importance as a transit hub. Both the Nord Stream and South Stream pipelines - Russia not on-the-ground but under-seas - bypass Ukraine. The Nord Stream, finished in 2011, links Russia with Germany beneath the Baltic Sea. South Stream, beneath the Black Sea, will be ready before the end of 2015. Geoeconomically, the Empire needs Ukraine to be out of the Eurasian economic union promoted by the Kremlin - which also includes Kazakhstan and Belarus. And geopolitically, when NATO Secretary General, the vain puppet Anders Fogh Rasmussen, said that an IMF-EU package for the Ukraine would be "a major boost for Euro-Atlantic security", this is what clinched it; the only thing that matters in this whole game is NATO "annexing" Ukraine, as I examined earlier. It has always been about the Empire of Bases - just like the encirclement of Iran; just like the "pivot" to Asia translating into encirclement of China; just like encircling Russia with bases and "missile defense". Over the Kremlin's collective dead body, of course.
  • Then there are the new regional governors appointed to the mostly Russophone east and south of Ukraine. They are - who else - oligarchs, such as billionaires Sergei Taruta posted to Donetsk and Ihor Kolomoysky posted in Dnipropetrovsk. People in Maidan in Kiev were protesting mostly against - who else - kleptocrat oligarchs. Once again, Western corporate media - which tirelessly plugged a "popular" uprising against kleptocracy - hasn't noticed it.
  • Ukraine's foreign currency reserves, only in the past four weeks, plunged from US$17.8 billion to $15 billion. Wanna buy some hryvnia? Well, not really; the national currency, is on a cosmic dive against the US dollar. This is jolly good news only for disaster capitalism vultures. And right on cue, the International Monetary Fund is sending a "fact-finding mission" to Ukraine this week. Ukrainians of all persuasions may run but they won't hide from "structural adjustment". They could always try to scrape enough for a ticket with their worthless hryvnia (being eligible for visa on arrival in Thailand certainly helps). European banks - who according to the Bank for International Settlements (BIS) hold more than $23 billion in outstanding loans - could lose big in Ukraine. Italian banks, for instance, have loaned nearly $6 billion. On the Pipelineistan front, Ukraine heavily depends on Russia; 58% of its gas supply. It cannot exactly diversify and start buying from Qatar tomorrow - with delivery via what, Qatar Airways?
  • US Secretary of State John Kerry accusing Russia of "invading Ukraine", in "violation of international law", and "back to the 19th century", is so spectacularly pathetic in its hypocrisy - once again, look at the US's record - it does not warrant comment from any informed observer. Incidentally, this is as pathetic as his offer of a paltry $1 billion in "loan guarantees" - which would barely pay Ukraine's bills for two weeks. The Obama administration - especially the neo-cons of the "F**k the EU" kind - has lost is power play. And for Moscow, it has no interlocutor in Kiev because it considers the regime-changers illegal. Moscow also regards "Europe" as a bunch of pampered whining losers - with no common foreign policy to boot. So any mediation now hinges on Germany. Berlin has no time for "sanctions" - the sacrosanct American exceptionalist mantra; Russia is a plush market for German industry. And for all the vociferations at the Economist and the Financial Times, the City of London also does not want sanctions; the financial center feeds on lavish Russian politico/oligarch funds. As for the West's "punishment" for Russia by threatening to expel it from the Group of Eight, that is a joke. The G-8, which excludes China, does not decide anything relevant anymore; the G-20 does.
  • If a wide-ranging poll were to be conducted today, it would reveal that the majority of Ukrainians don't want to be part of the EU - as much as the majority of Europeans don't want the Ukraine in the EU. What's left for millions of Ukrainians is the bloodsucking IMF, to be duly welcomed by "Yats" (as Prime Minister Yatsenyuk is treated by Vic "F**k the EU" Nuland). Ukraine is slouching towards federalization. The Kiev regime-changers will have no say on autonomous Crimea - which most certainly will remain part of Ukraine (and Russia by the way will save $90 million in annual rent for the Sevastopol base, which until now was payable to Kiev.) The endgame is all but written; Moscow controls an autonomous Crimea for free, and the US/EU "control", or try to plunder, disaster capitalism-style, a back of beyond western Ukraine wasteland "managed" by a bunch of Western puppets and oligarchs, with a smatter of neo-nazis. So what is the Obama/Kerry strategic master duo to do? Start a nuclear war?
Gary Edwards

Is Obama the Head of a Secret Cult? A 15-Point Test. | Casey Research - 0 views

  • But what really amazes me are those ideas that even a little reflection and study reveal as ridiculous, but that nonetheless gain a large and devoted following. For instance, that big government—in truth, little more than a motley collection of meddlesome bureaucrats advised by rent-seeking, ivory-tower academics—are in possession of the solutions to all of society's ills.
  • All of which got me to thinking about this odd trait of humans to form associations around bad ideas, and that, in turn, led me to think about the nature of cults. After all, can there be a more ridiculous idea than becoming a trained lapdog to some modern-day messiah? Yet, how does one go from being a go-along-to-get-along kind of person one day to lining up for a fatal dose of poison, thoughtfully flavored with grape Kool-Aid, the next? Or signing up to become a gunman willing to kill or be killed in a foreign adventure in support of a half-baked idea that's cast as somehow being in the "national interest," when even a cursory examination would tell you it's not?
  • Both of those examples are in diametric opposition to self-preservation, the most fundamental of all human instincts.
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  • Less dramatically but yet still with serious consequences, how is it that otherwise rational people come to accept the idea that widespread economic success can flow from the loins of a bureaucracy that produces nothing but regulatory chains on the aspirations of individuals looking to better their lives and those of their families? And when that success fails to materialize, readily accept the idea that the Fed can pump money out by the trillions with no negative effect? In any event, I started poking around the literature of various organizations specializing in the study of mind control and found what I think are some interesting lessons for us all in the studies of cults. After all, if psychological buttons can be pushed in a combination that leads to drinking poisoned Kool-Aid, you can sure as hell bet they can be pushed to get you to vote for a string of sociopathic poseurs… or to dedicate a large chunk of your life and charitable giving to causes that have little connection to reality. Or to decide to create a Facebook page titled, "I love it when I wake up in the morning and Barack Obama is President." In fact, based on the guidelines provided by the International Cult Studies Association (ICSA), you or someone you know may already be in a cult and not even be aware of it. Worse, the president himself might be the head of a cult! There are 15 separate traits the ICSA identifies as common among cults. Ticking through them should prove informative.
  • The group displays excessively zealous and unquestioning commitment to its leader and regards his belief system, ideology, and practices as "the Truth."
  • Questioning, doubt, and dissent are discouraged or even punished.
  • Mind-altering practices are used in excess and serve to suppress doubts about the group and its leader(s).
  • The leadership dictates, sometimes in great detail, how members should think, act, and feel
  • The group is elitist, claiming a special, exalted status for itself, its leader(s), and members.
  • Members are encouraged or required to live and/or socialize only with other group members.
  • The group has a polarized us-versus-them mentality, which may cause conflict with the wider society.
  • The group teaches or implies that its supposedly exalted ends justify whatever means it deems necessary.
  • The leadership induces feelings of shame and/or guilt in order to influence and/or control members. Often, this is done through peer pressure and subtle forms of persuasion.
  • Subservience to the leader or group requires members to cut ties with family and friends, and radically alter the personal goals and activities they had before joining the group.
  • The group is preoccupied with bringing in new members.
  • The group is preoccupied with making money.
  • Members are expected to devote inordinate amounts of time to the group and group-related activities.
  • The leader is not accountable to any authorities.
  • The most loyal members (the "true believers") feel there can be no life outside the context of the group. They believe there is no other way to be, and often fear reprisals to themselves or others if they leave (or even consider leaving) the group.
  • How to Spot a Pathological Liar
  • In researching the nature of cults, I took a side street to investigate the mental condition called "pseudologia fantastica," or in lay terms, a mental condition where individuals become pathological liars. I did so because I wondered how politicians can spew forth their untruths with straight faces.
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    "So is Obama really the leader of a cult? Based on the above checklist, I'd have to say he is-and it's a pretty big cult, at that. If you agree, it behooves us to define the overarching beliefs of the cult over which he presides. In my view, those beliefs were accurately summed up by Thomas Sowell in his classic, A Conflict of Visions, as revolving around the idea that we humans can and should be made ever-more perfect by government policy. With that idea at the core of the cult's belief, almost no action, no matter how extreme, is off the table when it comes to government action. Deception, artifice, bullying, war-making, spying, money-printing, regulation, forcing Ritz crackers on children, taking over large swaths of the economy, or propping up companies in favored industries are all justifiable parts and parcels of the whole. Unfortunately, because the cult offers financial handouts to join, the ranks of this particular cult have swelled in recent decades. So much so that it has reached the point where, like an uninfected human in a world full of zombies, those who don't belong increasingly have to maintain a low profile or risk having their faces eaten (or, perhaps less dramatically, being subjected to a forensic audit by the IRS). This is equally true, and maybe more so, with private corporations, which keep their mouths shut as the healthcare burden of non-workers is transferred to their balance sheets, or which trumpet the fact that they're "green" in order to avoid being targeted by cult members."
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