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Paul Merrell

Growing segments of US public alienated from Israel, survey shows | The Electronic Inti... - 0 views

  • But if this is an indication that Clinton will pursue the usual hardline policies calculated to pander to Israel’s most extreme supporters, it is also a sign that she, like other mainstream US politicians, is moving away from large segments of the US public, particularly the base of her own Democratic Party. This is illustrated in a poll from Bloomberg Politics, published Wednesday. Here are the key highlights: Israel has become a deeply partisan issue for ordinary Americans as well as for politicians in Washington, a shift that may represent a watershed moment in foreign policy and carry implications for domestic politics after decades of general bipartisan consensus. Republicans by a ratio of more than 2-to-1 say the US should support Israel even when its stances diverge with American interests, a new Bloomberg Politics poll finds. Democrats, by roughly the same ratio, say the opposite is true and that the US must pursue its own interests over Israel’s.
  • Further illustrating how sharply partisan the debate has become, Republicans say they feel more sympathetic to Israeli Prime Minister Benjamin Netanyahu than to their own president, 67 percent to 16 percent, while Democrats are more sympathetic to President Barack Obama than to Israel’s prime minister, 76 percent to 9 percent. The survey also highlights how differently the nuclear negotiations with Iran are seen between Republicans and Democrats. Democrats, by a nearly 3-to-1 ratio, said they were more optimistic than pessimistic that a tentative deal with Iran announced this month will contain Iran’s ability to get nuclear weapons and thus make the world safer.
  • By a 2-to-1 margin, Republicans were more pessimistic than optimistic about the impacts of a deal. Majorities of Americans in both parties say any deal Obama makes with Iran should be subject to congressional approval, and that Iran is an unreliable negotiating partner because it is a religious theocracy.
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  • The poll also shows, as Glenn Greenwald puts it at The Intercept, that “religious fanaticism is a huge factor in Americans’ support for Israel.” Bloomberg Politics finds that “Born-again Christians are more likely than overall poll respondents, 58 percent to 35 percent, to back Israel regardless of US interests. Americans with no religious affiliation were the least likely to feel this way, at 26 percent.” “The US media loves to mock adversary nations, especially Muslim ones, for being driven by religious extremism, but that is undeniably a major factor, arguably the most significant one, in explaining fervent support for Israel among the American populace,” Greenwald observes.
  • The poll also confirms that Israel is increasingly becoming a niche issue of the right: “62 percent of self-identified conservatives say supporting Israel is key, while that drops to 35 percent among moderates,” the poll states.
  • This is all in line with broader trends in recent years: an increasingly multicultural and younger America is moving to the left, while an older, whiter, more Christian America that is in demographic decline has been moving to the right. What’s striking is that Hillary Clinton’s campaign launch video – featuring multiracial families, single moms and a gay couple about to get married – was calculated to appeal to the America that is increasingly alienated from Israel and the conservatives who love it. The America Hillary Clinton is trying to woo is moving away from Israel. Will the presidential hopeful and the Democratic Party leadership follow? I wouldn’t bet on it any time soon, but the trends are hard to ignore.
Paul Merrell

Now Congress Is Fast-Tracking the TPP Fast Track | The Nation - 0 views

  • After months of back-room negotiations, key congressional negotiators are finally ready to unveil legislation that would fast-track approval for the Trans-Pacific Partnership. The bill would prohibit Congress from amending the trade deal, and would require a simple-majority vote for passage, but would in exchange set a variety of negotiating parameters. If the architects of the legislation—Senators Ron Wyden and Orrin Hatch and Representative Paul Ryan—are at all worried that members of Congress will feel fast-track leaves them out of the process, they are doing a pretty terrible job of addressing those concerns. A Senate Finance Committee hearing Thursday morning featured top US trade officials—but occurred before the legislation was even unveiled, and was called with almost no notice. This drew some unusual and strong rebukes from Democrats on the Finance Committee over an unfair process.
  • Hatch and Wyden, the chairman and ranking member of Senate Finance respectively, called hearing on Wednesday night that was ostensibly about “Congress and US Tariff Policy.” It featured several top US officials that deal with trade: US Trade Representative Michael Froman, Agriculture Secretary Tom Vilsack, and Treasury Secretary Jack Lew. Hatch announced at the top of the hearing that fast-track legislation could come as early as the afternoon, and both he and Wyden began their opening statements by talking about the looming bill. Members of the committee thus suddenly found themselves in a fast-track hearing without knowing it—and before they saw the legislation. Many of them didn’t like it. Senator Chuck Schumer, likely to be the next Democratic majority leader, opposes fast-track and objecting in the hearing to “rushing” the legislation. Senator Sherrod Brown said “We got twelve hours notice on a bill we haven’t seen…you can’t fast-track fast track.”
  • Senators appeared unsure if they would even get to see the legislation before a vote. Senator Debbie Stabenow asked if the committee would have to vote “on an agreement that we have not yet even seen and that hasn’t been reached,” according to the Huffington Post.
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  • As the hearing was going on, six Democratic members of the committee took the unusual step of issuing a joint statement objecting to the hearing they were sitting in on: “With millions of jobs on the line, American workers and manufacturers deserve more than a hastily scheduled hearing without an underlying bill. Congress should undergo a thorough and deliberative committee process for debating trade agreements that account for 40 percent of our world’s GDP. And we should be debating a bill that has seen the light of day and contains strong provisions to protect American workers against illegal trade practices like currency manipulation.” Schumer, Brown and Stabenow, along with Senators Robert Menendez, Ben Cardin and Bob Casey attached their names to the statement.
Paul Merrell

These Are all the Countries Where the US Has a Military Presence | Global Research - Ce... - 0 views

  • On Mar. 24, US president Barack Obama announced that all 9,800 US troops currently stationed in Afghanistan will remain until the end of 2015. This generated a fair amount of criticism: it was, after all, Obama’s promise that the last American troop would leave the country in 2014. How have Obama’s plans for pulling out of Afghanistan fared so far? http://t.co/avoxwJzzQw pic.twitter.com/3S5FJ3lgho — FiveThirtyEight (@FiveThirtyEight) March 26, 2015
  • Those expecting the US to leave Afghanistan, however, should take a minute to consider this: the US still hasn’t left Germany. In fact, there are quite a few places the US hasn’t left, and while certainly most of them don’t pose a threat to American soldiers, they reveal a pattern about the US staying, rather than leaving. According to official information provided by the Department of Defense (DoD) and its Defense Manpower Data Center (DMDC) there are still about 40,000 US troops, and 179 US bases in Germany, over 50,000 troops in Japan (and 109 bases), and tens of thousands of troops, with hundreds of bases, all over Europe. Over 28,000 US troops are present in 85 bases in South Korea, and have been since 1957. Altogether, based on information contained in the DoD’s latest Base Structure Report (BSR), the US has bases in at least 74 countries and troops practically all over the world, ranging from thousands to just one in some countries (it could be a military attaché, for instance).
  • By comparison, France has bases in 10 countries, and the UK has bases in seven. Calculating the extent of the US military presence abroad is not an easy task. The data released by the Department of Defense is incomplete, and inconsistencies are found within documents. Quartz has requested clarification from the Department of Defense, but hasn’t received a response. In his forthcoming book Base Nation: How US Military Bases Abroad Harm America and the World, David Vine, associate professor of anthropology at American University details the difficulties of assessing the US military presence abroad. He writes: according to the most recent publicized count, the U.S. military currently still occupies 686 “base sites” outside the fifty states and Washington, DC. While 686 base sites is quite a figure in its own right, that tally strangely excludes many well-known U.S. bases, like those in Kosovo, Kuwait, and Qatar. Less surprisingly, the Pentagon’s count also excludes secret (or secretive) American bases, like those reported in Israel and Saudi Arabia. There are so many bases, the Pentagon itself doesn’t even know the true total. That is not the only issue—even a definitive count of bases would include a wide range of facilities. “Base” itself is an umbrella term that includes locations referred to as “post,” “station,” “camp,” or “fort” by different military bodies. Vine explains:
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  • bases come in all sizes and shapes, from massive sites in Germany and Japan to small radar facilities in Peru and Puerto Rico. […] Even military resorts and recreation areas in places like Tuscany and Seoul are bases of a kind; worldwide, the military runs more than 170 golf courses. The map below represents US military bases abroad, according to the official BSR, and from independent research conducted by Vine (and Quartz) using verified news reports as well as cross-referencing information with Google Maps. This map does not take into account NATO bases, including a rumored base in Turkmenistan and a base in Algeria, reported by Wikileaks to be a suspected US base.
Paul Merrell

Iran Is Invited to Join U.S., Russia and Europe for Talks on Syria's Future - The New Y... - 0 views

  • Iran has been invited to join talks in Vienna this week with Russia, the United States and European nations on whether a political resolution is possible in the Syrian civil war. If Iran accepts, it will be the first time Secretary of State John Kerry will enter formal negotiations with Tehran on issues beyond the nuclear accord reached in July. Russia has been pressing to include Iran, the only other major power giving military support to President Bashar al-Assad in his effort to remain in power. Senior American officials have begun to acknowledge in recent weeks that no serious discussion of a possible political succession plan in Syria can happen without Tehran’s involvement.But the American denunciation of Iran’s activities in Syria, including its support for Mr. Assad’s forces and for terror groups like Hezbollah, has always prevented the United States from including Iran in formal talks about the Syrian crisis. Continue reading the main story Related Coverage Turkey Confirms Strikes Against Kurdish Militias in SyriaOCT. 27, 2015 U.N. Rights Investigator Highly Critical of IranOCT. 27, 2015 Assad Makes Unannounced Trip to Moscow to Discuss Syria With PutinOCT. 21, 2015 The State Department spokesman, John Kirby, buried that policy at a briefing on Tuesday, before it was announced that Mr. Kerry would attend the meeting on Syria in Vienna on Thursday and Friday. “We anticipate that Iran will be invited to attend this upcoming meeting,” Mr. Kirby said.
  • Mr. Kirby added that the United States still opposed what he termed Iran’s “destabilizing activities” in Syria. But he said that the United States “recognized that at some point in the discussion, moving toward a political transition, we have to have a conversation and a dialogue with Iran.”The change is another example of how Russia’s military entry into the Syrian war has changed the power dynamic of the sporadic negotiations. For a long while the United States argued that Mr. Assad must go — as President Obama declared four years ago at the White House — before negotiations on a successor could begin. That position was altered recently to say that a political solution could be sought as long as it included an eventual transition of power, perhaps to another Alawite-dominated government.But the latest shift is a recognition that Russia and Iran may well be the two biggest voices in who succeeds Mr. Assad — if any political transition can be engineered — and that to leave the Iranians out of the conversation was “simply ignoring reality,” one senior American diplomat said.
Paul Merrell

Europe Is Spying on You - The New York Times - 0 views

  • When Edward Snowden disclosed details of America’s huge surveillance program two years ago, many in Europe thought that the response would be increased transparency and stronger oversight of security services. European countries, however, are moving in the opposite direction. Instead of more public scrutiny, we are getting more snooping. Pushed to respond to the atrocious attacks in Paris and Copenhagen and by the threats posed by the Islamic State to Europe’s internal security, several countries are amending their counterterrorism legislation to grant more intrusive powers to security services, especially in terms of mass electronic surveillance.
  • Governments now argue that to guarantee our security we have to sacrifice some rights. This is a specious argument. By shifting from targeted to mass surveillance, governments risk undermining democracy while pretending to protect it.They are also betraying a long political and judicial tradition affording broad protection to privacy in Europe, where democratic legal systems have evolved to protect individuals from arbitrary interference by the state in their private and family life. The European Court of Human Rights has long upheld the principle that surveillance interferes with the right to privacy. Although the court accepts that the use of confidential information is essential in combating terrorist threats, it has held that the collection, use and storage of such information should be authorized only under exceptional and precise conditions, and must be accompanied by adequate legal safeguards and independent supervision. The court has consistently applied this principle for decades when it was called to judge the conduct of several European countries, which were combating domestic terrorist groups.
  • More recently, as new technologies have offered more avenues to increase surveillance and data collection, the court has reiterated its position in a number of leading cases against several countries, including France, Romania, Russia and Britain, condemned for having infringed the right to private and family life that in the interpretation of the court covers also “the physical and psychological integrity of a person.”
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  • Last year, the European Court of Justice set limits on telecommunication data retention. By invalidating a European Union directive for its unnecessary “wide-ranging and particularly serious interference with the fundamental right to respect for private life” and personal data, this court reaffirmed the outstanding place privacy holds in Europe. This judgment echoed a 2006 German Constitutional Court ruling that the German police had breached the individual right to self-determination and human dignity after they conducted a computerized search of suspected terrorists. Regrettably, these judgments are often ignored by key decision-makers. Many of the surveillance policies that have recently been adopted in Europe fail to abide by these legal standards. Worse, many of the new intrusive measures would be applied without any prior judicial review establishing their legality, proportionality or necessity. This gives excessive power to governments and creates a clear risk of arbitrary application and abuse.
Paul Merrell

Wikimedia v. NSA: Another Court Blinds Itself to Mass NSA Surveillance | Electronic Fro... - 0 views

  • We all know justice is blind. But that is supposed to mean that everyone before it is treated equally, not that the justice system must close its eyes and refuse to look at important legal issues facing Americans.  Yet the government continues to convince courts that they cannot consider the constitutionality of its behavior in national security cases and, last week, in an important case for anyone who has ever used Wikipedia, another judge agreed with that position.  A federal district judge in Maryland dismissed Wikimedia v. NSA, a case challenging the legality of the NSA’s “upstream” surveillance—mass surveillance of Internet communications as they flow through the Internet backbone. The case was brought by our friends at the ACLU on behalf of nine plaintiffs, including human rights organizations, members of the media, and the Wikimedia Foundation.1 We filed a brief in the case, too, in support of Wikimedia and the other plaintiffs. The judge dismissed the case based on a legal principle called standing. Standing is supposed to ensure, among other things, that the party bringing the lawsuit has suffered a concrete harm, caused by the party being sued, and that the court can resolve the harm with a favorable ruling.
  • But the U.S. government has taken this doctrine, which was intended to limit the cases federal courts hear to actual live controversies, and turned it into a perverse shell game in surveillance cases—essentially arguing that because aspects of the surveillance program are secret, plaintiffs cannot prove that their communications were actually, in fact, intercepted and surveilled. And without that proof, the government argues, there’s no standing, because plaintiffs can’t show that they’ve suffered harm. Sadly, like several other courts before it, the judge agreed to this shell game and decided that it couldn’t decide whether the constitutional rights of Wikimedia and the other plaintiffs were violated.  This game is mighty familiar to us at EFF, but that doesn’t make it any less troubling. In our system, the courts have a fundamental obligation to conclusively determine the legality of government action that affects individuals’ constitutional rights. For years now, plaintiffs have tried to get the courts to simply issue a ruling on the merits of NSA surveillance programs. And for years, the government has successfully persuaded the courts to rely on standing and related doctrines to avoid doing so. That is essentially what happened here. The court labeled as “speculative” Wikimedia’s claim that, at a minimum, even one of its approximately one trillion Internet communications had been swept up in the NSA’s upstream surveillance program. Remember, this is a program that, by the government’s own admission, involves the searching and scanning of vast amounts of Internet traffic at key Internet junctures on the Internet’s backbone. Yet in court’s view, Wikimedia’s allegations describing upstream—based on concrete facts, taken from government documents— coupled with a plaintiff that engages in a large volume of internet communications were not enough to state a “plausible” claim that Wikimedia had been surveilled.
  • On the way to reaching that conclusion, and putting on its blindfold, the court made a number of mistakes. The Government’s Automated Eyes Are Still Government Eyes First, it appears the court fundamentally misunderstood Wikimedia’s claim about upstream surveillance and, in particular, “about surveillance.” As Wikimedia alleged, “about surveillance” (a specific aspect of upstream surveillance that searches the content of communications for references to particular email addresses or other identifiers) amounts to “the digital analogue of having a government agent open every piece of mail that comes through the post to determine whether it mentions a particular word or phrase.” The court held, however, that this type of “about” surveillance was “targeted insofar as it makes use of only those communications that contain information matching the tasked selectors,” like email addresses. But what the government "makes use of" is entirely beside the point—it is the scanning of the communications for the tasked selectors in the first place that is the problem.  To put it into a different context, the government conducts a search when it enters into your house and starts rifling through your files—not just when it finds something it wants to keep. The government's ultimate decision to “make use of” the communications it finds interesting is irrelevant. It is the search of the communications that matters.
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  • Back of the Envelope Gymnastics Another troubling aspect of the court’s decision was its attack on the probabilities Wikimedia assigned to the likelihood of its communications being intercepted. Given that Wikimedia engages in a large volume of Internet communications, Wikimedia alleged that—even assuming a .00000001% chance that any one particular communication is intercepted—it would still have a 99.9999999999% of having one of its communications intercepted. The statistic was used to illustrate that, even assuming very low probabilities for interception, there was still a near-certainty that Wikipedia’s traffic was collected. But the court attacked Wikimedia’s simple statistical analysis (and the attack tracked, to a great degree, arguments made in the government’s declarations that the court purportedly did not consider). The court seemed to believe it had seized upon a great flaw in Wikimedia’s case by observing that, if the probability of any given communication being intercepted were decreased 100% or 1000%, the probability of one of Wikimedia’s communications being intercepted would similarly drop. The “mathematical gymnastics” the court believed it had unearthed were nothing more than Wikimedia using an intentionally small (and admittedly arbitrary) probability to illustrate the high likelihood that its communications had been swept up. But even if the court disagreed with the probabilities Wikimedia relied on, it’s not at all clear why that would justify dismissing the case at the outset. If it turned out, after development of the record, that the probabilities were off, then dismissal might be appropriate. But the court cut the case off before Wikimedia had the opportunity to introduce evidence or other facts that might support the probability they assigned.
  • Someone Else Probably Has Standing, Right? Perhaps most troubling was the court’s mistaken belief that the legality of upstream surveillance could be challenged in other ways, beyond civil cases like Wikimedia or our ongoing case, Jewel v. NSA. The court asserted its decision would not insulate upstream from judicial review, which—according to the court—could still receive judicial scrutiny through (1) review from the Foreign Intelligence Surveillance Court (FISC), (2) a challenge by a criminal defendant, or (3) a challenge from an electronic service provider. None of these options is truly a viable alternative, however. First, the FISC (until very recently) did not have adversarial proceedings—it only heard from the government, and its proceedings remain both far more limited and more secretive than a regular court’s. Second, a challenge from a criminal defendant won’t work either, because, to date, the government has explicitly refused to disclose—even where defendants are notified of the use of FISA surveillance—whether their communications were obtained using upstream surveillance. And, finally, in the nearly 15 years (or more) the government has conducted upstream surveillance, we’re not aware of any service provider that has challenged the legality of the practice. Indeed, given that upstream is done with the cooperation of telecoms like AT&T and Verizon—the same telcos that did not challenge the NSA’s bulk collection of Americans’ call records for over a decade—we're not holding our breath for a challenge anytime soon. Instead, we need the courts to tackle these cases. Upstream surveillance presents unique constitutional issues that no federal court has seriously addressed. It's time the federal courts stepped up to the challenge.
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    The notion that the government can intentionally violate the privacy rights of its citizens yet a court find that those citizens have no right to seek redress announces a view that privacy rights are hollow --- that those wronged by government malfeasance have no remedy in the courts of our nation. That is a view that must be thrown in the dustbins of history if freedom is to be preserved. 
Paul Merrell

Obama Turns to Diplomacy and Military in Syria, and Is Met With Doubts - The New York T... - 0 views

  • For the first time in the four-year Syrian civil war, President Obama is beginning to execute a combined diplomatic and military approach to force President Bashar al-Assad to leave office and end the carnage. As 50 Special Operations troops arrive in Syria to bolster the most effective opposition groups, the administration is gambling that Secretary of State John Kerry will have more leverage to push Russia, Iran and other players toward two objectives: a cease-fire to limit the cycle of killing and the establishment of a timeline for a transition of power.But the task is enormous, given the number of nations and rebel groups operating at cross-purposes and the tiny size of the American force. Even senior members of the administration express doubts in private about whether the effort is sufficient.
  • Mr. Kerry will travel to Vienna this weekend, summoning many of Syria’s neighbors and European powers to turn a vague declaration of principles, settled on two weeks ago, into a plan for a political agreement. The talks, at least so far, have not included representatives of Mr. Assad’s government or the fractured rebel groups seeking to depose him, and Mr. Kerry is struggling to bring them to the negotiating room.But after years in which the Obama administration has been accused of largely sitting on the sidelines while a quarter-million Syrians died and millions more were displaced, Mr. Kerry seems buoyed by being at the center of the only diplomatic effort underway.
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    Here's my peace plan for Syria: The U.S. withdraws all forces and support for the Syrian opposition concurrently with threatening Turkey, Saudi Arabia, and Qatar with invasion if they do not promptly withdraw all support for the mercenaries fighting the elected government in Syria. 
Paul Merrell

China's Xinjiang Problem - Made in USA First | nsnbc international - 0 views

  • China’s western region of Xinjiang, a vast area home to some 21 million people, is one of several hubs of destabilization maintained by the US State Department and its vast network of nongovernmental organizations (NGOs), covert programs, and overt political meddling. America’s “Xinjiang game” is part of a larger, long-term goal of encircling, containing, and undermining China in a bid to maintain American hegemony across Asia.
  • Were one to believe the rhetoric emanating from any of these NGOs or the US State Department itself, the majority of Xinjiang’s population groans under the unbearable, despotic, inhumane rule of the Chinese Communist Party (CCP). US-based and funded NGOs claim that ethnic Uyghurs are regularly persecuted, discriminated against, and have their human rights consistently and unreasonably violated by Beijing. Of course, most of these claims are referred to by even the Western media as “allegations,” not documented facts, with the vast majority of these claims coming from a handful of Uyghur groups funded directly by the US State Department through its National Endowment for Democracy (NED). And most of these allegations are in regards to individuals and organizations directly linked to US efforts to destabilize the region. NED’s website even refers to China’s Xinjiang province parenthetically as “East Turkistan,” the name of the fictional state separatists seek to carve out of Chinese territory (with US backing).
Paul Merrell

Republican hopefuls split on foreign intervention, ISIL - Al Jazeera English - 0 views

  • Republican presidential candidates in the US have taken part in a new round of debates ahead of the party's primary elections due to be held next year.
  • The hopefuls on Tuesday evening sparred on domestic policy, as well as subjects including trade with China, climate change, and how to deal with Islamic State of Iraq and the Levant (ISIL), at the event held in Milwaukee in the US state of Wisconsin. On foreign policy, billionaire TV personality Donald Trump, who has led opinion polls in the Republican race for months, said he supported Russian President Vladimir Putin's decision to "knock the hell" out of the ISIL group by launching air strikes in Syria.
  • The comments earned the rebuke of the former Florida Governor Jeb Bush who said Russian military intervention in the country and its alliance with Syrian President Bashar al-Assad resembled a "board game".
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  • Bush, whose father and brother both served as presidents, called for a no-fly zone in the country, as well as safe zones to protect refugees. Rand Paul, in particular, sparked mixed reactions online with his comments that the war in Iraq had been a mistake, telling Americans they could vote for "Clinton or Bush" if they wanted a new war.
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    Someone forgot to tell trump that ISIL works for the U.S. CIA and State Dept.
Paul Merrell

Secret program at secret Guantánamo prison hears everything | Miami Herald - 0 views

  • A secret Defense Department program provides unfettered eavesdropping on the accused terrorists imprisoned at Guantánamo’s clandestine Camp 7 lockup, recently released war court documents show.Army Col. James L. Pohl, the judge in 9/11 trial, discovered the existence of the secret surveillance program during a recent war court hearing. Little is publicly known about the program, not even its unclassified two-word nickname.
  • The disclosure of pervasive eavesdropping at Guantánamo’s lockup for 14 former CIA prisoners comes in before-and-after documents released by the court from the recent Oct. 19-30 pretrial hearings in the death-penalty case of five men accused of orchestrating the hijackings that killed nearly 3,000 people on Sept. 11, 2001.At issue was accused 9/11 plotter Walid bin Attash’s request for guidance on how he could function as his own attorney. Bin Attash is a Yemeni in his mid-30s who is accused of training some of the hijackers. “You must assume anything you say in Camp 7 is not confidential and will be disclosed to the U.S. Government,” warns an Oct. 23 draft of the advisory, crafted after the judge was informed of the covert program. “Only when you are in Echo 2 will anything you say be covered by the attorney-client privilege.”An Oct. 20 draft of the advisory omits those lines.
  • This is not the first time in the proceedings that a surveillance program caught Pohl by surprise. In January 2013, he ordered the CIA to unplug a button that allowed an unseen observer to cut the court’s audio feed to the public. Perhaps ironically, the lone site the judge considers safe for consultative trial preparation — the Camp Echo compound of wooden huts, each containing a cell — at one time had covert recording devices that looked like smoke detectors. The judge ordered them disabled in February 2013.Attorney Dror Ladin of the American Civil Liberties Union, who was an observer at the Guantánamo hearings last month, said the apparent disclosure of “pervasive surveillance at Camp 7” is the latest issue to challenge the possibility of a fair trial.“It is shocking that for years neither defense counsel nor the judge were made aware that the government was capturing everything said aloud by the detainees there,” he said Thursday. It also adds to mounting questions of “how these military commissions can produce a fair result,” said Ladin, especially if one of the men represents himself. “These are detainees who really can’t see the evidence against them and simultaneously have been provided no rehabilitation services for the torture they suffered for years. It would be astonishing if any of them could craft a fair defense for capital charges.”
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  • A defense attorney in another case said the prosecution wants to use a surreptitiously recorded conversation between two Camp 7 captives against an alleged al-Qaida commander. And in 2012 the journalist Daniel Klaidman wrote in his book “Kill or Capture” that the U.S. government had recordings made in a Guantánamo prison recreation yard of the alleged Sept. 11 mastermind Khalid Sheik Mohammed talking about evidence that could be used against him.The latest disclosure comes at a time of decreasing transparency at the war court.On Oct. 29, the judge held a 13-minute secret session without advanced notice to the public. A day later the judge wrote in a three-page ruling that he closed the court at the request of “the Government” — war-court-speak for the prosecution — to protect state secrets whose disclosure “could result in grave danger to national security.”Pohl also ordered the court to issue a censored transcript of the parts the excluded public and accused would be allowed to see. No transcript has been released.Then the next day, Oct. 30, the judge held a daylong, open hearing on a restraining order he issued forbidding female guards from touching the 9/11 accused when they are being taken to court or legal meetings. The judge’s order has outraged members of Congress and the Pentagon brass.
  • In that public court hearing, soldiers called as witnesses from the prison discussed staffing patterns at Camp 7. Normally the Pentagon releases transcripts of open hearings the same day. Unusually, the court has not yet released the Oct. 30 transcript. A Pentagon spokesman suggested Thursday — 13 days after the open court hearing — that somebody was scrubbing the transcript of information already made public. “The security review of the Oct. 30 transcript remains ongoing,” said Navy Cmdr. Gary Ross. “We will provide an update once additional information becomes available.”Much of the October session focused on bin Attash’s question about how he’d act as his own lawyer in a system that does not let the accused terrorist see classified information in the case. The judge and attorneys devoted days to designing a script Pohl would read to any accused 9/11 terrorist who tries to take charge of his defense — and spent a full afternoon huddling in a closed meeting on the secret program.
  • In it, Pohl made clear that he never intended to let bin Attash dismiss his Pentagon-paid defense attorneys — Chicago criminal defense attorney Cheryl Bormann and Air Force Maj. Michael Schwartz. Instead, the script shows Pohl planned to appoint Bormann and Schwartz as “standby counsel” the judge could activate to carry out cross-examination of certain witnesses who might have “particular sensitivities” to being questioned by the alleged terrorist.“If you are represented by lawyers, then it is the lawyers, and not you, who will conduct the defense,” the warning says. “Correspondingly, if you represent yourself, you will be able to perform the lawyer’s core functions, but you will not necessarily be allowed to direct special appearances by counsel when it is convenient to you.”The language suggests a far more limited role by the American lawyers than those carried out in an aborted attempt to hold the Sept. 11 trial during the Bush administration. In those proceedings, alleged 9/11 terrorists serving as their own lawyer regularly had standby counsel write and argue motions in court.The script also envisions a scenario in which an accused 9/11 plotter serving as his own lawyer becomes unruly, disruptive or disobedient rather than respect “the dignity of the courtroom.” In such a case, the judge said he could deal with “obstructionist misconduct” by putting “physical restraints” on bin Attash or ejecting him from the court.Bin Attash, for his part, has not been noticeably disruptive across years of pretrial proceedings. An amputee, he was brought to his May 5, 2012 arraignment in a Guantánamo prison restraint chair routinely used for forced-feeding of hunger strikers — with guards carrying his prosthetic leg separately.
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    It's long past time to recognize that the military cannot provide a fair trial for GITMOI detainees, transfer them to the U.S., and try them in a civilian Article II court. If this kind of crap were going down before an Article II judge, those conducting the surveillance would be sitting in jail. 
Gary Edwards

Google's About Me page helps users control personal info - CIO - 0 views

  • People concerned about how much information is out there about them on Google have a new way to control what everyone can see. Without any fanfare, Google has begun rolling out an About Me page to make it easier for people to control what others can see about them across Google services. The page should be welcome news to people concerned about their privacy,
  • "With this feature, there are no changes to what information people can see, but a way for people to better control what people can see about them across Google services in one place," a Google spokesperson wrote in an email to Computerworld. Google, with its myriad services like Gmail, search, YouTube and productivity apps, has been collecting a lot of information about its users.
  • The About Me page, which is tailored for each user, contains information like work history, contact information, educational background and places the user has lived, along with gender and birthday. Brand Post How is tech changing the role of the CIO? More from Lenovo ThinkFWD The page also enables users to edit or delete information that they don't want people to be able to see.
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  • this should make it easier for people to take control over what information is out there about them on various Google services.
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    Run, don't walk! HTTPS://aboutme.google.com
Paul Merrell

In Egypt, Angry Talk of Western Conspiracy Over Plane Crash - The New York Times - 0 views

  • Egyptian media have reacted with fury as Britain and the United States increasingly point to a bomb as the cause of the Oct. 31 Russian plane crash in Sinai, with many outlets hammering home the same message: Egypt is facing a Western conspiracy that seeks to scare off tourists and destroy the country's economy. The warnings of a plot have been widely promoted by opinion-makers in print, online, and on TV, sometimes hinting and sometimes saying flat-out that the West has restricted flights to Egypt not purely out of safety concerns for its citizens but because it wants to undermine the country or prevent President Abdel-Fattah el-Sissi from making Egypt too strong.And though they seem wild, these conspiracy theories have apparently tapped into the Egyptian mindset — so much so that when Russia last Friday grounded all flights to Egypt, some media speculated that Moscow had fallen victim to British pressure and manipulation."The people defy the conspiracy — Egypt will not cave in to pressures," the state-owned Al-Gomhuria newspaper proclaimed in a front-page headline this week. "Egypt stands up to 'the West's terrorism,'" an independent daily, El-Watan, headlined.
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    Seems as though I'm not the only one who suspects a false flag operation by the U.S.
Paul Merrell

Steven Salaita settles lawsuit with Univ. of Illinois | The Electronic Intifada - 0 views

  • Steven Salaita will not be reinstated under the terms of an out of court settlement with the University of Illinois. The deal will pay Salaita $875,000 – about ten times the annual salary he would have received as a tenured professor in the American Indian Studies program at the university’s flagship Urbana-Champaign campus. “This settlement is a vindication for me, but more importantly, it is a victory for academic freedom and the First Amendment,” Salaita said in a release from his legal counsel, the Center for Constitutional Rights and the law firm Loevy & Loevy. The settlement brings an end to Salaita’s breach of contract lawsuit against university trustees and administrators over his August 2014 firing because of his tweets excoriating Israel’s attack on Gaza. Salaita had sought reinstatement as well as financial damages.
  • The university statement said Salaita would receive a lump sum of $600,000, while the remaining amount would cover his legal fees.
  • Salaita’s case became a cause celebre for academic freedom, highlighting the role of pro-Israel donors in pressuring university administrators. Thousands of academics pledged to boycott the university until he was reinstated. The Salaita affair devastated and demoralized the university’s celebrated American Indian Studies program, leading to the departure of several faculty. His firing also earned the University of Illinois a formal censure from the American Association of University Professors for violating academic freedom, a rare rebuke and severe blow to its reputation.
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  • Salaita had scored successes in the early phases of his federal lawsuit. In August, US District Judge Harry Leinenweber backed Salaita’s contention that he had a binding contract with the university. Yet there was never a guarantee that even if he won at trial that the court would order his reinstatement. In September, the judge found that university officials had destroyed emails that may have contained key evidence Salaita needed to prove his case. This came after sensational revelations that top officials, including then Chancellor Phyllis Wise, had been using private email accounts to discuss the case and evade disclosure laws. Wise and another official, Provost Ilesanmi Adesida, resigned in disgrace, adding to the disarray at the frequently scandal-plagued state university.
  • In August, Salaita took up a year-long post as Edward W. Said Chair of American Studies at the American University of Beirut.
Paul Merrell

More Is Needed to Beat ISIS, Pentagon Officials Conclude - The New York Times - 0 views

  • Pentagon officials have concluded that hundreds more trainers, advisers and commandos from the United States and its allies will need to be sent to Iraq and Syria in the coming months as the campaign to isolate the Islamic State intensifies. In meetings with President Obama’s national security team in recent weeks, military officials have told the White House that they believe they have made significant progress in the fight against the Islamic State in both Iraq and Syria, administration officials said. But to deal a lasting blow to the extremist Sunni militancy, also known as ISIS and ISIL, they believe that additional forces will be needed to work with Iraqi, Kurdish and Syrian opposition fighters on the ground in the two countries. Continue reading the main story Related Coverage U.S. Relies Heavily on Saudi Money to Support Syrian RebelsJAN. 23, 2016 U.S. Revamping Rebel Force Fighting ISIS in SyriaSEPT. 6, 2015 Obama Administration Ends Effort to Train Syrians to Combat ISISOCT. 9, 2015 In the past, the Pentagon’s requests for additional troops in both Iraq and Afghanistan have been met with skepticism by Mr. Obama, and his aides have said he has resented what he has regarded as efforts to pressure him. But the rise of the Islamic State has alarmed the White House, and a senior administration official said Thursday that the president is willing to consider raising the stakes in both Iraq and Syria.
Paul Merrell

Presence of U.S. Nuclear Weapons in Okinawa - 0 views

  • Also posted today are recently released CIA documents containing bogus information about Iraq’s nuclear programs
  • Two CIA reports on Iraq and its weapons activities produced during the months after 9/11; the CIA had denied both in their entirety. Neither treated Iraq as a significant threat, but both made claims which would become part of the justification for the 2003 war: that Iraq 1) had acquired aluminum tubes for gas centrifuges and 2) had deployed mobile biological laboratories, claims which were later disproven.
  • Documents 5A-B: Iraq through CIA Eyes after 9/11 A: Central Intelligence Agency, “The Iraq Threat,” 15 December 2001, SPWR [Senior Publish When Ready] 12501-07, Top Secret, excised copy B: Central Intelligence Agency, Senior Executive Memorandum [SEM], “In Response to a query about the status of Iran’s nuclear program,” 11 January 2002, Top Secret, excised copy Source: MDR request to CIA These two high-level CIA assessments from late 2001 and early 2002 demonstrate the lack of solid intelligence regarding Iraq’s WMD programs during the run-up to the 2003 war in Iraq.[3] There was a marked gap between the empirical information which the CIA could report, and be certain about, and the threat assessments which analysts were tasked to produce. Worst-case outcomes are proposed, then quickly undermined by admitting the lack of any intelligence to support doomsday scenarios. “The worst case scenario is illicit acquisition of sufficient fissile material, uranium or plutonium, to allow Baghdad to produce a crude nuclear weapon within a year. CIA has not detected a dedicated Iraqi effort to obtain fissile material from another government or on the black market but Baghdad could be expected to entertain any offers it deems credible” [SEM].
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  • The memoranda also indicate a significant disparity between what was probable, and what was feared. The analysts were most confident assessing that Saddam Hussein could be developing nuclear capabilities in just under ten years. Iraq might produce a “nuclear weapon, potentially late this decade,” the SEM notes. The SPWR, on the other hand, concludes: “Iraq is trying to jump-start a clandestine uranium enrichment program to produce the fissile material for a weapon, potentially by late this decade.” Those assessments were produced in the shadow of the failure of U.S. intelligence to detect Saddam Hussein’s clandestine nuclear program before the Gulf War. CIA analysts were hesitant to conclude that Iraq was not an immediate threat, yet they had little evidence indicating the existence of an Iraqi nuclear program that genuinely posed a hazard. “Saddam never abandoned his nuclear weapons program, but reporting on Iraqi efforts to revive it is limited. Iraq continues to employ effective denial and deception measures and there are no indicators that Baghdad has embarked on an extensive nuclear weapons effort as it did before the Gulf War” [SEM]. The released paragraphs addressing Iraq’s support of terrorism failed to mention al-Qaeda, surprising in light of claims from Bush Administration officials that Iraq was linked to terrorism and September 11. The Senior Executive Memorandum notes: “Baghdad has reduced its reliance on surrogates, preferring instead to use its own intelligence services for sensitive terrorist operations,” making a connection to non-Iraqi terrorist groups, including al-Qaeda, doubtful. Within Iraq, the 2001 memo notes how Saddam maintained a “multilayered and pervasive security apparatus.” The underground networks were critical to the anti-American insurgency that developed following the 2003 U.S. invasion, fragments of which have since evolved into the Islamic State. 
  • Despite their equivocal findings, these reports are evidence of the intelligence failure which contributed to the U.S. war. For example, CIA analysts linked the procurement of aluminum tubes to the potential development of centrifuges for uranium enrichment – an assertion later seized on by top officials as evidence that Iraq was trying to reconstitute its nuclear weapons program. Interestingly, intelligence analysts at the Department of Energy disagreed with this CIA contention, instead assessing that the aluminum tubes in question were much more likely intended for more benign purposes. However this disagreement did not appear to receive a full vetting during the lead-up to the 2003 war. Just as dubious were the CIA statements about mobile biological warfare laboratories, information that can be traced back to the notorious dissembler Curveball.
Paul Merrell

Hillary Clinton, With Little Notice, Vows to Embrace an Extremist Agenda on Israel - 0 views

  • Photo: Alex Brandon/APFormer President Bill Clinton on Monday met in secret (no press allowed) with roughly 100 leaders of South Florida’s Jewish community, and, as the Times of Israel reports, “He vowed that, if elected, Hillary Clinton would make it one of her top priorities to strengthen the U.S.-Israel alliance.” He also “stressed the close bond that he and his wife have with the State of Israel.” It may be tempting to dismiss this as standard, vapid Clintonian politicking: adeptly telling everyone what they want to hear and making them believe it. After all, is it even physically possible to “strengthen the U.S.-Israel alliance” beyond what it already entails: billions of dollars in American taxpayer money transferred every year, sophisticated weapons fed to Israel as it bombs its defenseless neighbors, blindly loyal diplomatic support and protection for everything it does? But Bill Clinton’s vow of even greater support for Israel is completely consistent with what Hillary Clinton herself has been telling American Jewish audiences for months. In November, she published an op-ed in The Forward in which she vowed to strengthen relations not only with Israel, but also with its extremist prime minister, Benjamin Netanyahu.
  • Her comments on Israel have similarly contained implicit criticisms of Obama’s foreign policy: namely, that he has created or at least allowed too much animosity with Netanyahu. In her Forward op-ed, she wrote that the Israeli prime minister’s “upcoming visit to Washington is an opportunity to reaffirm the unbreakable bonds of friendship and unity between the people and governments of the United States and Israel.” She pointedly added: “The alliance between our two nations transcends politics. It is and should always be a commitment that unites us, not a wedge that divides us.” And in case her message is unclear, she added this campaign promise: “I would also invite the Israeli prime minister to the White House in my first month in office.” Last month, Clinton wrote an even more extreme op-ed in the Jewish Journal, one that made even clearer that she intends to change Obama’s policy to make it even more “pro-Israel.” It begins: “In this time of terrorism and turmoil, the alliance between the United States and Israel is more important than ever. To meet the many challenges we face, we have to take our relationship to the next level.”
  • “With every passing year, we must tie the bonds tighter,” she wrote. Tie those bonds tighter. Thus: As part of this effort, we need to ensure that Israel continues to maintain its qualitative military edge. The United States should further bolster Israeli air defenses and help develop better tunnel detection technology to prevent arms smuggling and kidnapping. We should also expand high-level U.S.-Israel strategic consultations. As always, there is not a word about the oppression and brutality imposed on Palestinians as part of Israel’s decadeslong occupation. She does not even acknowledge, let alone express opposition to, Israel’s repeated, civilian-slaughtering bombing of the open-air prison in Gaza. That’s because for Clinton — like the progressive establishment that supports her — the suffering and violence imposed on Palestinians literally do not exist. None of this is mentioned, even in passing, in the endless parade of pro-Clinton articles pouring forth from progressive media outlets.
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  • Clinton partisans — being Clinton partisans — would, if they ever did deign to address Israel/Palestine, undoubtedly justify Clinton’s hawkishness on the ground of political necessity: that she could never win if she did not demonstrate steadfast devotion to the Israeli government. But for all his foreign policy excesses, including on Israel, Obama has proven that a national politician can be at least mildly more adversarial to Israeli leaders and still retain support. And notably, there is at least one politician who rejects the view that one must cling to standard pro-Israel orthodoxy in order to win; just yesterday, Donald Trump vowed “neutrality” on Israel/Palestine. As I noted a couple of weeks ago, Clinton advocates are understandably desperate to manufacture the most trivial controversies because the alternative is to defend her candidacy based on her prior actions and current beliefs (that tactic was actually pioneered by then-Clinton operative Dick Morris, who had his client turn the 1996 election into a discussion of profound topics such as school uniforms). If you were a pro-Clinton progressive, would you want to defend her continuous vows to “strengthen” U.S. support for the Netanyahu government and ensure that every year “we must tie the bonds tighter”?
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    Glen Greenwald (a Jew) tackles Hillary's promise to increase support for Israel's right-wing government, at the expense of Palestinian liberty. With friends like Israel, who needs enemies?
Paul Merrell

After 30 Years in Prison, Jonathan Pollard to Be Freed - but Not to Israel - The New Yo... - 0 views

  • Jonathan J. Pollard, the American convicted of spying on behalf of Israel, will walk out of prison on Friday after 30 years, but the Obama administration has no plans to let him leave the country and move to Israel as he has requested. Mr. Pollard, who as a Navy intelligence analyst passed classified documents to Israeli handlers, was due to be released from a federal prison in Butner, N.C., after receiving parole on a life sentence, ending a long imprisonment that has been a constant irritant in relations between the United States and Israel.Under federal parole rules, Mr. Pollard cannot leave the country without permission for at least five years. But his wife, Esther, lives in Israel and he has asked to be reunited with her there. Prime Minister Benjamin Netanyahu of Israel personally raised the request in a meeting with President Obama earlier this month, but the president was unmoved, according to American officials and the Israeli news media.
  • But the White House has said it would not intervene in the matter. Senior administration officials said on Thursday that the Justice Department was not considering Mr. Pollard’s request and had no plans to consider it. Administration officials have been loath to appear to grant Mr. Pollard special consideration in the face of strong opposition by intelligence agencies that call his actions a grievous betrayal of national security.“They don’t want to make it look like they were being too lenient,” said Joseph E. diGenova, the former United States attorney who prosecuted Mr. Pollard. If Mr. Pollard were allowed to go to Israel, where his case has been a cause célèbre for years, Mr. diGenova said there would be a “parade” and “events just rubbing it in the United States’ face.”The Israeli news media reported that Mr. Netanyahu and supporters of Mr. Pollard were discouraging public signs of celebration at his release to avoid antagonizing Washington. Supporters said it was churlish to deny Mr. Pollard the chance to leave the country now that he has completed his sentence.
Paul Merrell

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

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

Turkey Smuggled Sarin Gas to Al Qaeda Terrorists in Syria? Turkish MP | Global Research... - 0 views

  • Turkey is allegedly complicit in the smuggled use of various types of banned chemical weapons for which the Assad government was wrongfully blamed. Turkish Republican People’s Party (CHP) opposition member Eren Erdem accused Ankara of covering up a major war crime, likely direct high-level involvement in smuggling materials used to make deadly sarin gas to ISIS and other terrorists – US proxy foot soldiers waging war on Syria.
  • On December 10, Erdem addressed Turkish parliamentarians, discussing criminal case number 2013/120, opened by Ankara’s General Prosecutor’s Office in Adana. Evidence shows various Turkish nationals were involved in direct dealings with ISIS and other terrorist groups, supplying them with sarin gas. Recorded wiretapped conversations exposed dealings with Al Qaeda terrorist Hayyam Kasap. RT International interviewed Erdem. He explained “(t)here is data in this indictment. Chemical weapon materials are being brought to Turkey and being put together in Syria in camps of ISIS which was known as Iraqi Al Qaeda during that time.” “These are all detected. There are phone recordings of this shipment like ‘don’t worry about the border. We’ll take care of it,’ and we also see the bureaucracy is being used.” According to Erden, once word got out, 13 arrests were made. Days later, suspects were released, charges dropped – after a new Adana public prosecutor replaced the original one. Individuals accused then moved cross-border unobstructed to Syria. “The phone recordings in the indictment showed all the details from how the shipment was going to be made to how it was prepared, from the content of the labs to the source of the materials,”
  • Erden explained. “Which trucks were going to be used, all dates etc. From A to Z, everything was discussed and recorded. Despite all of this evidence, the suspects were released,” the case closed, showing high-level coverup, perhaps ordered by Erdogan. Materials to make sarin gas and perhaps other toxic chemicals moved freely cross-border from Turkey to Syria. Erden indicated a high-level regime coverup, evidence revealing Justice Minister Bekir Bozdag’s involvement. Toxic chemicals were purchased from Europe,” he said. US-led Western countries “should question themselves about these relations. Western sources know very well who carried out the sarin gas attack in Syria.” “They know these people. They know who (they) are working with. They know that these people are working for Al-Qaeda…Western (countries) are hypocrites about the situation.” It bears repeating. No evidence showed Syrian use of chemical or other toxic substances throughout years of conflict.
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  • Earlier, Saudi Arabia was caught red-handed providing them with chemical agents in containers marked “made in KSA (Kingdom of Saudi Arabia).” In early November, Organization for the Prohibition of Chemical Weapons (OPCW) experts confirmed terrorists’ use of mustard gas and chlorine in Syria with “utmost confidence” – calling perpetrators “non-state actor(s).” Blaming Assad for incidents of chemical weapons’ use is part of the US-led propaganda campaign to wrongfully vilify him.
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    This is consistent with other major reports indicating that the Ghouta sarin gas attack was a false flag attack staged by Turkey and the Saudis with the assistance of the U.S. 
Paul Merrell

Brazil's Epic Scandal Takes Down a Banker - Bloomberg Business - 0 views

  • Brazilians have become inured to seeing politicians and businessmen marched off to prison for corruption. But the mug shot of banker André Esteves—unshaven and frowning—that flashed across TV screens in early December was a shock. Part of a cadre of mavericks who got astonishingly rich from Brazil’s transformation into one of the world’s top 10 economies in the 2000s, Esteves helped turn Grupo BTG Pactual into Latin America’s biggest standalone investment bank. Supremely confident, Esteves—who was a billionaire by his mid-30s—liked to quip that the initials in his company’s name stood for “Better than Goldman.”Around dawn on Nov. 25, Esteves’s fortunes soured in an instant. Police showed up at his apartment, which faces Rio de Janeiro’s legendary Ipanema beach, and hauled him away on allegations of obstructing a federal investigation into a massive pay-to-play scheme centered on Brazil’s state-run oil giant, Petrobras. Now Esteves, 47, resides in a cell block with concrete beds and communal toilets at Bangu, a high-security prison in Rio better known for housing drug traffickers and murderers.
  • Having its founder, chief executive officer, and chairman behind bars has pushed BTG Pactual to the brink of insolvency as clients pull their money out. Within days of his arrest, Esteves had relinquished his controlling stake in the firm, and his partners had begun a wholesale selloff of assets. To avert disaster, Brazil’s central bank helped engineer a $1.6 billion rescue line from the country’s privately funded deposit guarantee fund. Still, the bank’s shares have lost half their value since Esteves’s arrest. On Dec. 7, prosecutors formally accused the banker of obstruction of justice. Antônio Carlos de Almeida Castro, Esteves’s lawyer, says his client has done nothing wrong.The metastatic graft scandal that sent Esteves to jail threatens more than the survival of BTG. So many legislators are implicated, Congress has been unable to pass legislation to contain an exploding budget deficit. President Dilma Rousseff has grown so unpopular that lawmakers are maneuvering to impeach her for allegedly cooking the government’s books. Meanwhile, the economy is sliding into what Goldman Sachs calls a full-blown depression.
  • BTG’s collapse won’t cause Brazil’s capital markets to seize up as Lehman Brothers’ failure did in the U.S. in 2008. Yet having one of the country’s most prominent financiers behind bars is a body blow to the confidence of investors at a time when Brazil needs their cash. “It very much gives you the impression that the corruption scheme is so widespread that it induces a kind of counterparty risk,” says Monica de Bolle, a former International Monetary Fund economist. “You enter into transactions with people in Brazil without knowing whether or not they might be implicated in something.” The result: “Nothing gets done. There’s no business,” she says.
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