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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.
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

75 Economic Numbers From 2012 That Are Almost Too Crazy To Believe - 0 views

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    Thanks to Marbux we have this extraordinary collection of facts and figures describing the economic catastrophe that has hit the USA.  excerpt: "What a year 2012 has been!  The mainstream media continues to tell us what a "great job" the Obama administration and the Federal Reserve are doing of managing the economy, but meanwhile things just continue to get even worse for the poor and the middle class.  It is imperative that we educate the American people about the true condition of our economy and about why all of this is happening.  If nothing is done, our debt problems will continue to get worse, millions of jobs will continue to leave the country, small businesses will continue to be suffocated, the middle class will continue to collapse, and poverty in the United States will continue to explode.  Just "tweaking" things slightly is not going to fix our economy.  We need a fundamental change in direction.  Right now we are living in a bubble of debt-fueled false prosperity that allows us to continue to consume far more wealth than we produce, but when that bubble bursts we are going to experience the most painful economic "adjustment" that America has ever gone through.  We need to be able to explain to our fellow Americans what is coming, why it is coming and what needs to be done.  Hopefully the crazy economic numbers that I have included in this article will be shocking enough to wake some people up. The end of the year is a time when people tend to gather with family and friends more than they do during the rest of the year.  Hopefully many of you will use the list below as a tool to help start some conversations about the coming economic collapse with your loved ones.  Sadly, most Americans still tend to doubt that we are heading into economic oblivion.  So if you have someone among your family and friends that believes that everything is going to be "just fine", just show them these numbers.  They are a good summary of the problems that the U
Gary Edwards

Is The US Finally Ready For Revolution? - Democratic Underground - 1 views

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    Written in June of 2012, before the national elections, this commentary remains the ringing truth.  Maybe more Americans are ready to listen this fourth of July? ........................... "Is America Ready For Revolution? I have always strongly believed that it's not possible to be a good Christian without standing up against social injustice and government corruption in all its forms. As I take a look around me today I find a lot of things wrong with our country. In fact, I have been a proponent for radical change for several years now, and I have written and published 2 books on this very topic. Where shall I begin? In God-blessed America, the land of the free where everyone is an economic slave, our founding fathers' sacred idea of a government "of the people, by the people, for the people" has become but a cruel joke. Former president George W. Bush has notoriously called our Constitution - our supreme law of the land - "that (expletive) piece of paper". The federal government is currently spending at least $60 billion per month on military excursions in Afghanistan, the Middle East, and northern and western Africa - including operating between 800 and 1,000 foreign military bases all over the world. Our country's over-used flying drone aircraft kills hundreds daily overseas, many of whom are only innocent bystanders. Meanwhile here on the home front, one in seven people are on food stamps, and at any given time one in four American children are going hungry today. Our country spends more money incarcerating people than it does on education. What's up with that? Our political system is openly rigged against the best interests of the American people. A massive market mechanism is securely entrenched in our political system where political influence is openly bought and sold. Tens of thousands of highly-paid middlemen called "lobbyists" facilitate the legal transfer of billions between moneyed special interests and our so-called "representatives" i
Gary Edwards

The Daily Bell - Richard Ebeling on Higher Interest Rates, Collectivism and the Coming ... - 0 views

  • The "larger dysfunction," as you express it, arises out of a number of factors. The primary one, in my view, is a philosophical and psychological schizophrenia among the American people.
  • While many on "the left" ridicule the idea, there is a strong case for the idea of "American exceptionalism," meaning that the United States stands out as something unique, different and special among the nations of the world.
  • the American Founding Fathers constructed a political system in the United States based on a concept on which no other country was consciously founded:
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  • But the American Revolution and the US Constitution hailed a different conception of man, society and government.
  • n the rest of the world, and for all of human history, the presumption has been that the individual was a slave or a subject to a higher authority. It might be the tribal chief; or the "divinely ordained" monarch who presumed to rule over and control people in the name of God; or, especially after the French Revolution and the rise of modern socialism, "the nation" or "the people" who laid claim to the life and work of the individual.
  • the idea of individual rights.
  • That is, as long as the individual did not violate the equal rights of others to their life, liberty and property, each person was free to shape and guide his own future, and give meaning and value to his own life as he considered best in the pursuit of that happiness that was considered the purpose and goal of each man during his sojourn on this Earth.
  • Governments did not exist to give or bestow "rights" or "privileges" at its own discretion.
  • Governments were to secure and protect each individual's rights, which he possessed by "the nature of things."
  • The individual was presumed to own himself. He was "sovereign."
  • The real and fundamental notion of "self-government" referred to the right of each individual to rule over himself.
  • Each individual, by his nature and his reason, had a right to his life, his liberty and his honestly acquired property.
  • during the first 150 years of America's history there was virtually no Welfare State and relatively few government regulations, controls and restrictions on the choices and actions of the free citizen.
  • But for more than a century, now, an opposing conception of man, society and government has increasingly gained a hold over the ideas and attitudes of people in the US.
  • It was "imported" from Europe in the form of modern collectivism.
  • The individual was expected to see himself as belonging to something "greater" than himself. He was to sacrifice for "great national causes."
  • He was told that if life had not provided all that he desired or hoped for, it was because others had "exploited" him in some economic or social manner, and that government would redress the "injustice" through redistribution of wealth or regulation of the marketplace.
  • If he had had financial and material success, the individual should feel guilty and embarrassed by it, because, surely, if some had noticeably more, it could only be because others had been forced to live with noticeably less.
  • left on its own, free competition tends to evolve into harmful monopolies and oligopolies, with the wealthy "few" benefiting at the expense of the "many."
  • They are the crises of the Interventionist-Welfare State: the attempt to impose reactionary collectivist policies of political paternalism and redistributive plunder on a society still possessing parts of its original individualist and rights-based roots.
  • it is in the form of communism's and socialism's critique of capitalism.
  • Unregulated capitalism leads to "unearned" and "excessive" profits; unbridled markets generate the business cycle and the hardships of recessions and depressions;
  • These two conflicting conceptions of man, society and government have been and are at war here in the United States.
  • And if it cannot be gotten and guaranteed through the redistributive mechanisms of the European Union and the euro, well, maybe we should return power to our own nation-states to provide the jobs, the social "safety nets" and the financial means to pay for it through, once again, printing our own national paper currencies.
  • This is the political-philosophical bankruptcy of the West and the dead ends of the collectivist promises of the last 100 years.
  • Ludwig von Mises's book, Socialism: An Economic and Sociological Analysis, originally published in 1922, demonstrated how and why a socialist, centrally planned system was inherently unworkable.
  • The nationalization of productive property, the abolition of markets and the prohibition of all competitive exchange among the members of society would prevent the emergence and operation of a price system, without which it is impossible to know people's demands for desired goods and the relative value they place on them.
  • It also prevents the emergence of prices for the factors of production (land, labor, capital) and makes it impossible to know their opportunity costs – the value of those factors of production in alternative competing uses among entrepreneurs desiring to employ them.
  • Without such a price system the central planners are flying blind, unable to rationally know or decide how best to utilize labor, capital and resources in productively efficient ways to make the goods and services most highly valued by the consuming public.
  • Thus, Mises concluded, comprehensive socialist central planning would lead to "planned chaos."
  • And, therefore, there is no guarantee that the amount of investments undertaken and their time horizons are compatible with the available resources not also being demanded and used for more immediate consumer goods production in the society.
  • As a consequence, financial markets do not work like real markets.
  • Thus, the interventionist state leads to waste, inefficiency and misuses of resources that lower the standards of living that we all, otherwise, could have enjoyed.
  • We cannot be sure what the amount of real savings may be in the society to support real and sustainable investment and capital formation.
  • Government intervention prevents prices from "telling the truth" about the real supply and demand conditions thus leading to imbalances and distortions in the market.
  • We cannot know what the "real cost" of borrowing should be, since interest rates are not determined by actual, private sector savings and investment decisions.
  • Government production regulations, controls, restrictions and prohibitions prevent entrepreneurs from using their knowledge, ability and capital in ways that most effectively produce the goods consumers actually want and at the most cost-competitive prices possible.
  • This is why countries around the world periodically experience booms and busts, inflations and recessions − not because of some inherent instabilities or "irrationalities" in financial markets, but because of monetary central planning through central banking that does not allow market-based financial intermediation to develop and work as it could and would in a real free-market setting.
  • But in the United States and especially in Europe, government "austerity" means merely temporarily reducing the rate of increase in government spending, slowing down the rate at which new debt is accumulating and significantly raising taxes in an attempt to close the deficit gap.
  • The fundamental problem is that over the decades, the size and scope of governments in the Western world have been growing far more than the rates at which their economies have been expanding, so that the "slice" of the national economic "pie" eaten by government has been growing larger and larger, even when the "pie" in absolute terms is bigger than it was, say, 30 or 40 years ago.
  • European governments, in general, take the view that "austerity" means squeezing the private sector more through taxes and other revenue sources to avoid any noticeable and significant cuts in what government does and spends.
  • So there is "austerity" for the private sector and a mad rush for financial "safety nets" for the government and those who live off the State.
  • In reality, of course, it is the burdens of government regulation, taxation and impediments to more flexible labor and related markets that have generated the high unemployment rates and the retarded recovery from the recession.
  • Instead, the "common market" ideal has been transformed into the goal of a European Union "Super-State" to which the individual countries and their citizens would be subservient and obedient.
  • Keynesian policies offer people and politicians what they want to hear. Claiming that any sluggish business or lost jobs are due to a lack of "aggregate demand," Keynes argued that full employment and profitable business could only be reestablished and maintained through "activist" government monetary and fiscal policy – print money and run budget deficits.
  • What Britain and Europe should have as its goal is the ideal of the classical liberal free traders of the 19th century – non-intervention by governments in people's lives, at home and abroad. That is, a de-politicization of society, so people may freely work, trade and travel as they peacefully wish, with government merely the protector of people's individual rights.
  • Take the benefits away and tell people they are free to come and work to support themselves and their families. Restore more flexibility and competitiveness to labor markets and reduce taxes and business regulations.
  • Then those who come to Britain's shores will be those wanting freedom and opportunity without being a burden upon others.
  • What was needed was a change in ideas from the statist mentality to one of individual freedom and unhampered free markets.
  • In an epoch of collectivist ideas, don't be surprised if governments regulate, control, intervene and redistribute wealth.
  • The tentacle of regulations, restrictions and politically-correct social controls are spreading out in every direction from Brussels and its European-wide manipulating and mismanaging bureaucracy.
  • In the name of assuring "national prosperity," politicians could spend money to buy the votes that get them elected and reelected to government offices.
  • And every special interest group could make the case that government-spending programs that benefitted them were all reasonable and necessary to assure a fully employed and growing economy.
  • Furthermore, the Keynesian rationale for government deficit spending enabled politicians to seem to be able to offer something for nothing. They could offer, say, $100 of government spending to voters and special interest groups but the tax burden imposed in the present might only be $75, since the remainder of the money to pay for that government spending was borrowed. And that borrowed money would not have to be repaid until some indefinite time in the future by unspecific taxpayers when that "tomorrow" finally arrived.
  • instability
  • Keynes argued that the market economy's inherent
  • arose from the
  • who were subject to irrational and unpredictable waves of "optimism" and "pessimism."
  • animal spirits" of businessmen
  • Mises argued that there was nothing inherent in the market economy to bring about these swings of economic booms followed by periods of depression and unemployment.
  • If markets got out of balance with the necessity of an eventual correction in the economy to, once again, set things right, the source of this instability was government monetary policy.
  • Central banks too often followed a policy of trying to create "good times" in the economy by expanding the money supply through the banking system.
  • With new, excess funds created by the central bank available for lending, banks lower rates of interest to attract borrowers.
  • But this throws savings and investment out of balance, since the rate of interest no longer serves as a reliable indicator and signal concerning the availability of real savings in the economy in relation to those wanting to borrow funds for various investment purposes.
  • The economic crisis comes when it is discovered that all the claims on resources, capital and labor for all the attempted consumption and investment activities in the economy are greater than the actual and available amounts of such scarce resources.
  • The recession period, in Mises's view, is the necessary "correction" period when in the post-boom era, people must adapt and adjust to the newly discovered "real" supply and demand conditions in the market.
  • Any interference with the "rebalancing" of the economy by government raising taxes, imposing more regulations, or new artificial government "stimulus" activities merely makes it more difficult and time-consuming for people in the private sector to get the economy back on an even keel.
  • Friedrich A. Hayek, once observed, unemployment is not "caused" by stopping an inflation, but rather inflation induces the artificial employments that cannot be sustained and which inevitably disappear once the inflation is reined in.
  • The recession of 2008-2009 was the result of several years of central bank stimulus.
  • From 2003 to 2008, the Federal Reserve increased the money supply by about 50 percent.
  • Interest rates for much of this time, when adjusted for inflation, were either zero or negative.
  • Awash in cash, banks extended loans to virtually anyone, with no serious and usual concern about the borrower's credit-worthiness.
  • This was most notably true in the housing market, where government agencies like Fannie May and Freddie Mac were pressuring banks to make mortgage loans by promising a guarantee that they would make good on any bad home loans.
  • Since 2008-2009, the Federal Reserve has, again, turned on the monetary spigot, increasing its own portfolio by almost $3 trillion, by buying US Treasuries, US mortgages and other assets.
  • So why has there not been a complementary explosion of price inflation?
  • In some areas there has been, most clearly in the stock market and the bond market, But the reason why all that newly created money has not brought about a higher price inflation is due to the fact that a large part of all newly created money is sitting as unlent reserves in banks.
  • This is because the Federal Reserve has been paying banks a rate of interest slightly above the market interest rates to induce banks not to lend.
  • (a) general "regime uncertainty," that is, no one knows what government policy will be tomorrow; will ObamaCare be fully implemented after January 2014?;
  • Among the reasons for the sluggish jobs growth in the US are:
  • (b) what will taxes be for the rest of the current president's term in the White House
  • (c) what will the regulatory environment be like for the next three years – in 2012, the government implemented around 80,000 pages of regulations as printed in the Federal Registry;
  • (d) how will the deficit and debt problems play out between Congress and the White House and will it threaten the general financial situation in the country; an
  • (e) what wars, if any, will the government find itself involved in, in places like the Middle East?
  • China
  • is still a controlled and commanded society, with a government that works hard to try to determine what people read, see and think.
  • All these building projects have been brought into existence by a government that not only controls the money supply and manipulates interest rates but also heavy-handedly tells banks whom to specifically loan to and for what investment activities.
  • Central planning is alive and well in China, with the motives being both power and profits for those inside and outside the Communist Party having the most influence and connections in "high" places.
  • In my opinion, China is heading for a great economic crisis, resulting from a highly imbalanced and distorted economic system still guided far more by politics than sound market decision-making.
  • global financial markets in any foreseeable future. It is a money that still primarily exists to serve the political purposes of those who sit in the "inner circles" of power in Beijing.
  • One hundred years ago, in 1913, how many could have predicted that a year later a European-wide war would break out that would lead to the destruction of great European empires and set the stage for the rise of totalitarian collectivism that resulted in an even worse global war two decades later?
  • Thus, whether, at the end of the day, freedom triumphs and the future is one of liberty and prosperity is partly on each one of us.
  • Near the end of his great book, Socialism, Ludwig von Mises said:
  • "Everyone carries a part of society on his shoulders; no one is relieved of his share of responsibility by others. And no one can find a safe way out for himself if society is sweeping towards destruction. Therefore, everyone, in his own interest, must thrust himself vigorously into the intellectual battle. None can stand aside with unconcern; the interests of everyone hang on the result. Whether he chooses or not, every man is drawn into the great historical struggle, the decisive battle into which our epoch has plunged us . . . Whether society shall continue to evolve or where it shall decay lies . . . in the hands of man."
  • In my view, the idea of a "soft landing" is an illusion based on the idea held by central bankers, themselves, that they have the wisdom and ability to know how to "micro-manage" the all the changes and adjustments resulting from their own manipulations of the monetary aggregates. They do not have this wisdom and ability. So hold on for what is most likely to be another rocky road.
  • It was Mises's clear vision that once society has broken the relationship between value and payment, sooner or later people would not know the price of anything.
  • At this point, investment ceases and business becomes furtive and transactional.
  • People cannot plan for the future because they do not understand the reality of the present.
  • Society begins to sink.
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    Incredible.  A simple explanation that explains everything.  Rchard Ebeling's "Unified Theory of Everything" is something every American can understand.  If only they would take a break from "Dancing with the Stars" and pay attention to the future of their country and the world.  It's a future where either "individual freedom", as defined by our Constitution and Declaration of Independence, will win out; or, the forces of fascist socialism / marxism will continue to roll and rule.  Incredible read!!!!
Gary Edwards

'Clinton death list': 33 spine-tingling cases - 0 views

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    "(Editor's note: This list was originally published in August 2016 and has gone viral on the web. WND is running it again as American voters cast their ballots for the nation's next president on Election Day.) How many people do you personally know who have died mysteriously? How about in plane crashes or car wrecks? Bizarre suicides? People beaten to death or murdered in a hail of bullets? And what about violent freak accidents - like separate mountain biking and skiing collisions in Aspen, Colorado? Or barbells crushing a person's throat? Bill and Hillary Clinton attend a funeral Apparently, if you're Bill or Hillary Clinton, the answer to that question is at least 33 - and possibly many more. Talk-radio star Rush Limbaugh addressed the issue of the "Clinton body count" during an August show. "I swear, I could swear I saw these stories back in 1992, back in 1993, 1994," Limbaugh said. He cited a report from Rachel Alexander at Townhall.com titled, "Clinton body count or left-wing conspiracy? Three with ties to DNC mysteriously die." Limbaugh said he recalled Ted Koppel, then-anchor of ABC News' "Nightline," routinely having discussions on the issue following the July 20, 1993, death of White House Deputy Counsel Vince Foster. In fact, Limbaugh said, he appeared on Koppel's show. "One of the things I said was, 'Who knows what happened here? But let me ask you a question.' I said, 'Ted, how many people do you know in your life who've been murdered? Ted, how many people do you know in your life that have died under suspicious circumstances?' "Of course, the answer is zilch, zero, nada, none, very few," Limbaugh chuckled. "Ask the Clintons that question. And it's a significant number. It's a lot of people that they know who have died, who've been murdered. "And the same question here from Rachel Alexander. It's amazing the cycle that exists with the Clintons. [Citing Townhall]: 'What it
Gary Edwards

Who owns the Bank of England? |Dark Politricks - 0 views

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    "Who owns the Bank of England? A brief history of World Banksters By Dark Politricks First a few historical comments by people who helped create two of the worlds most famous central banks, the Bank of England and the Federal Reserve. "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." - Woodrow Wilson, after signing the Federal Reserve into existence The Bank of England was created in 1694 by a Scotsman William Paterson who famously said: The bank hath benefit of interest on all moneys which it creates out of nothing. - William Paterson The history of the Bank of England and how it was taken over by one powerful family hundreds of years ago. Up until 1946 when it was nationalised the Bank of England was a private run bank that lent money it created out of nothing to the English government and was paid back with interest. A very famous story relates to the Bank of England and the infamous Rothschilds, that all powerful banking family. This story was re-told recently in a BBC documentary about the creation of money and the Bank of England. It revolves around the Battle of Waterloo in which Nathan Rothschild used his inside knowledge of the outcome and his faster horses and couriers to play the market by getting the result of the battle before anyone else knew the outcome. He quickly sold his English bonds and gave all the traders who looked to him for guidance the impression that the French had won at Waterloo. The other traders all rus
Gary Edwards

BENGHAZI - THE BIGGEST COVER-UP SCANDAL IN U.S. HISTORY? - WAS BENGHAZI A CIA GUN-RUNNI... - 0 views

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    "LibertyNEWS.com - Editorial Team Special Report It's never fun to admit you've been lied to and duped. There is no comfort in realizing a high-level group in government has conned you. The wound created from such a realization would be deep and painful when paired with extraordinary insult when you realize the cons are people you not only trusted, but people who are tasked with protecting your rights, your liberty, your life. When these people betray you, you're in trouble - big trouble. Unfortunately, we believe America is being betrayed by powerful individuals tasked with our protection. These people are found in the White House, the Congress, the CIA and other government entities - and they're lying to you. Then they're covering it up on an epic scale, in a never-before-seen manner. Here are the basics of what the schemers in government and the complicit media would like for us all to focus on and buy into: Why wasn't there better security at the consulate (keep this misleading word in mind) in Benghazi? Why didn't authorization come to move special forces in for protection and rescue? Why was an obscure video blamed when everyone knew the video had nothing to do with it? Did Obama's administration cover-up the true nature of the attacks to win an election? Truth is, as we're starting to believe, the above questions are convenient, tactical distractions. And truth is, answers to these questions, if they ever come, will never lead to revelations of the REAL TRUTH and meaningful punishment of anyone found responsible. Rep. Darrell Issa knows this, members of the House Committee investigating the Benghazi attacks know this, the White House knows this, and much of the big corporate media infrastructure knows it, too. How do they know it? Because they know the truth. They know the truth, but cannot and/or will not discuss it in public. Here are the basics that we (America, in general) should be focusing on, but aren't: Why do media
Gary Edwards

Rand Paul's Tea Party Response: Full Text - 0 views

  • With my five-year budget, millions of jobs would be created by cutting the corporate income tax in half, by creating a flat personal income tax of 17%, and by cutting the regulations that are strangling American businesses.
  • America has much greatness left in her. We will begin to thrive again when we begin to believe in ourselves again, when we regain our respect for our founding documents, when we balance our budget, when we understand that capitalism and free markets and free individuals are what creates our nation’s prosperity.
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    Outstanding statement about what made America great, an dhow are government is destroying that greatness.  This is the full Text of Sen. Rand Paul's Tea Party Response to Obama's State of the Union Address: I speak to you tonight from Washington, D.C. The state of our economy is tenuous but our people remain the greatest example of freedom and prosperity the world has ever known. People say America is exceptional. I agree, but it's not the complexion of our skin or the twists in our DNA that make us unique. America is exceptional because we were founded upon the notion that everyone should be free to pursue life, liberty, and happiness. For the first time in history, men and women were guaranteed a chance to succeed based NOT on who your parents were but on your own initiative and desire to work. We are in danger, though, of forgetting what made us great. The President seems to think the country can continue to borrow $50,000 per second. The President believes that we should just squeeze more money out of those who are working. The path we are on is not sustainable, but few in Congress or in this Administration seem to recognize that their actions are endangering the prosperity of this great nation. Ronald Reagan said, government is not the answer to the problem, government is the problem. Tonight, the President told the nation he disagrees. President Obama believes government is the solution: More government, more taxes, more debt. What the President fails to grasp is that the American system that rewards hard work is what made America so prosperous. What America needs is not Robin Hood but Adam Smith. In the year we won our independence, Adam Smith described what creates the Wealth of Nations. He described a limited government that largely did not interfere with individuals and their pursuit of happiness. All that we are, all that we wish to be is now threatened by the notion that you can have something for nothing, that you can have your cake and ea
Paul Merrell

Multiple Polls: Americans Are More Afraid of the GOVERNMENT than TERRORISTS Washington'... - 0 views

  • According to a pair of recent polls, for the first time since the 9/11 terrorist hijackings, Americans are more fearful their government will abuse constitutional liberties than fail to keep its citizens safe. Even in the wake of the April 15 Boston Marathon bombing – in which a pair of Islamic radicals are accused of planting explosives that took the lives of 3 and wounded over 280 – the polls suggest Americans are hesitant to give up any further freedoms in exchange for increased “security.” A Fox News survey polling a random national sample of 619 registered voters the day after the bombing found despite the tragic event, those interviewed responded very differently than following 9/11. For the first time since a similar question was asked in May 2001, more Americans answered “no” to the question, “Would you be willing to give up some of your personal freedom in order to reduce the threat of terrorism?”
  • Of those surveyed on April 16, 2013, 45 percent answered no to the question, compared to 43 percent answering yes. In May 2001, before 9/11, the balance was similar, with 40 percent answering no to 33 percent answering yes. But following the terrorist attacks of 9/11, the numbers flipped dramatically, to 71 percent agreeing to sacrifice personal freedom to reduce the threat of terrorism. Subsequent polls asking the same question in 2002, 2005 and 2006 found Americans consistently willing to give up freedom in exchange for security. Yet the numbers were declining from 71 percent following 9/11 to only 54 percent by May 2006. Now, it would seem, the famous quote widely attributed to Benjamin Franklin – “They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety” – is holding more sway with Americans than it has in over a dozen years.
  • A similar poll sampling 588 adults, conducted on April 17 and 18 for the Washington Post, also discovered the change in attitude. “Which worries you more,” the Post asked, “that the government will not go far enough to investigate terrorism because of concerns about constitutional rights, or that it will go too far in compromising constitutional rights in order to investigate terrorism?” The poll found 48 percent of respondents worry the government will go too far, compared to 41 percent who worry it won’t go far enough. And similar to the Fox News poll, the Post found the worry to be a fresh development, as only 44 percent worried the government would go too far in January 2006 and only 27 percent worried the government would go too far in January 2010.
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  • The Fox News poll found that a bare majority of Democrats (51%) would give up more personal freedom to reduce the threat of terror, while only 47% of Republicans – and a mere 29% of independents – would do so. This is not entirely surprising. As we noted in February: For years, “conservative” pollsters have said that Americans are furious at the government: Rasmussen noted in 2010 that only a small minority of the American people think that the government has the consent of the governed, and that the sentiment was “pre-revolutionary” Gallup noted in 2011 that a higher percentage of American liked King George during the colonial days than currently like Congress
  • And last year, Gallup noted that trust was plummeting in virtually all institutions Liberals may be tempted to think that this is a slanted perspective. But non-partisan and liberal pollsters are saying the same thing: An NBC News/Wall Street Journal poll from 2011 found that 76% of Americans believe that the country’s current financial and political structures favor the rich over the rest of the country The Washington Post reported in 2011 that Congress was less popular than communism, BP during the Gulf oil spill or Nixon during Watergate
  • Public Policy Polling added last month that Congress is also less popular than cockroaches, lice, root canals, colonoscopies, traffic jams, used car salesman and Genghis Khan And the liberal Pew Charitable Trusts noted last week that – for the first time – a majority of the public says that the federal government threatens their personal rights and freedoms: The latest national survey by the Pew Research Center for the People & the Press, conducted Jan. 9-13 among 1,502 adults, finds that 53% think that the federal government threatens their own personal rights and freedoms while 43% disagree. In March 2010, opinions were divided over whether the government represented a threat to personal freedom; 47% said it did while 50% disagreed. In surveys between 1995 and 2003, majorities rejected the idea that the government threatened people’s rights and freedoms.
  • *** The survey finds continued widespread distrust in government. About a quarter of Americans (26%) trust the government in Washington to do the right thing just about always or most of the time; 73% say they can trust the government only some of the time or volunteer that they can never trust the government. *** Majorities across all partisan and demographic groups express little or no trust in government. Obviously, Democrats are currently more trusting in government than Republicans. For example: The Pew Research Center’s 2010 study of attitudes toward government found that, since the 1950s, the party in control of the White House has expressed more trust in government than the so-called “out party.”
  • But given that even a growing percentage of Dems believe that government is a threat to their freedom, things are indeed getting interesting … It doesn’t help that the government claims the power to assassinate American citizens living on U.S. soil, indefinitely detain Americans without trial, spy on everyone and otherwise intrude into every aspect of our lives. Postscript: What are the actual risks coming from government versus terrorism?  That’s an interesting question.
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    From 2013, not long after the Boston Bombing. I never had much respect for those willing to surrender my liberties so they could feel a bit more secure. "Security is mostly a superstition. It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure, or nothing." Helen Keller, The Open Door (1957).
Paul Merrell

Canadian Spies Collect Domestic Emails in Secret Security Sweep - The Intercept - 0 views

  • Canada’s electronic surveillance agency is covertly monitoring vast amounts of Canadians’ emails as part of a sweeping domestic cybersecurity operation, according to top-secret documents. The surveillance initiative, revealed Wednesday by CBC News in collaboration with The Intercept, is sifting through millions of emails sent to Canadian government agencies and departments, archiving details about them on a database for months or even years. The data mining operation is carried out by the Communications Security Establishment, or CSE, Canada’s equivalent of the National Security Agency. Its existence is disclosed in documents obtained by The Intercept from NSA whistleblower Edward Snowden. The emails are vacuumed up by the Canadian agency as part of its mandate to defend against hacking attacks and malware targeting government computers. It relies on a system codenamed PONY EXPRESS to analyze the messages in a bid to detect potential cyber threats.
  • Last year, CSE acknowledged it collected some private communications as part of cybersecurity efforts. But it refused to divulge the number of communications being stored or to explain for how long any intercepted messages would be retained. Now, the Snowden documents shine a light for the first time on the huge scope of the operation — exposing the controversial details the government withheld from the public. Under Canada’s criminal code, CSE is not allowed to eavesdrop on Canadians’ communications. But the agency can be granted special ministerial exemptions if its efforts are linked to protecting government infrastructure — a loophole that the Snowden documents show is being used to monitor the emails. The latest revelations will trigger concerns about how Canadians’ private correspondence with government employees are being archived by the spy agency and potentially shared with police or allied surveillance agencies overseas, such as the NSA. Members of the public routinely communicate with government employees when, for instance, filing tax returns, writing a letter to a member of parliament, applying for employment insurance benefits or submitting a passport application.
  • Chris Parsons, an internet security expert with the Toronto-based internet think tank Citizen Lab, told CBC News that “you should be able to communicate with your government without the fear that what you say … could come back to haunt you in unexpected ways.” Parsons said that there are legitimate cybersecurity purposes for the agency to keep tabs on communications with the government, but he added: “When we collect huge volumes, it’s not just used to track bad guys. It goes into data stores for years or months at a time and then it can be used at any point in the future.” In a top-secret CSE document on the security operation, dated from 2010, the agency says it “processes 400,000 emails per day” and admits that it is suffering from “information overload” because it is scooping up “too much data.” The document outlines how CSE built a system to handle a massive 400 terabytes of data from Internet networks each month — including Canadians’ emails — as part of the cyber operation. (A single terabyte of data can hold about a billion pages of text, or about 250,000 average-sized mp3 files.)
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  • The agency notes in the document that it is storing large amounts of “passively tapped network traffic” for “days to months,” encompassing the contents of emails, attachments and other online activity. It adds that it stores some kinds of metadata — data showing who has contacted whom and when, but not the content of the message — for “months to years.” The document says that CSE has “excellent access to full take data” as part of its cyber operations and is receiving policy support on “use of intercepted private communications.” The term “full take” is surveillance-agency jargon that refers to the bulk collection of both content and metadata from Internet traffic. Another top-secret document on the surveillance dated from 2010 suggests the agency may be obtaining at least some of the data by covertly mining it directly from Canadian Internet cables. CSE notes in the document that it is “processing emails off the wire.”
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    " CANADIAN SPIES COLLECT DOMESTIC EMAILS IN SECRET SECURITY SWEEP BY RYAN GALLAGHER AND GLENN GREENWALD @rj_gallagher@ggreenwald YESTERDAY AT 2:02 AM SHARE TWITTER FACEBOOK GOOGLE EMAIL PRINT POPULAR EXCLUSIVE: TSA ISSUES SECRET WARNING ON 'CATASTROPHIC' THREAT TO AVIATION CHICAGO'S "BLACK SITE" DETAINEES SPEAK OUT WHY DOES THE FBI HAVE TO MANUFACTURE ITS OWN PLOTS IF TERRORISM AND ISIS ARE SUCH GRAVE THREATS? NET NEUTRALITY IS HERE - THANKS TO AN UNPRECEDENTED GUERRILLA ACTIVISM CAMPAIGN HOW SPIES STOLE THE KEYS TO THE ENCRYPTION CASTLE Canada's electronic surveillance agency is covertly monitoring vast amounts of Canadians' emails as part of a sweeping domestic cybersecurity operation, according to top-secret documents. The surveillance initiative, revealed Wednesday by CBC News in collaboration with The Intercept, is sifting through millions of emails sent to Canadian government agencies and departments, archiving details about them on a database for months or even years. The data mining operation is carried out by the Communications Security Establishment, or CSE, Canada's equivalent of the National Security Agency. Its existence is disclosed in documents obtained by The Intercept from NSA whistleblower Edward Snowden. The emails are vacuumed up by the Canadian agency as part of its mandate to defend against hacking attacks and malware targeting government computers. It relies on a system codenamed PONY EXPRESS to analyze the messages in a bid to detect potential cyber threats. Last year, CSE acknowledged it collected some private communications as part of cybersecurity efforts. But it refused to divulge the number of communications being stored or to explain for how long any intercepted messages would be retained. Now, the Snowden documents shine a light for the first time on the huge scope of the operation - exposing the controversial details the government withheld from the public. Under Canada's criminal code, CSE is no
Paul Merrell

A Distorted Lens Justifying An Illegitimate Ukrainian Government - 0 views

  • Support it or oppose it, a coup d’état took place in Kiev after an EU-brokered agreement was signed by the Ukrainian government and the mainstream opposition on Feb. 21. The agreement called for power sharing between both sides through the formation of a national unity government and for an end to the opposition-led street protests in Kiev. President Viktor Yanukovych ordered the Ukrainian police and security forces to withdraw from their positions, and even earlier, he had made multiple concessions to the opposition leadership. Instead of keeping its end of the bargain, the Ukrainian mainstream opposition executed a coup through the use of violence by organized ultra-nationalist gangs, which some analysts have compared to stay-behinds or secretive militias that were created by NATO during the Cold War. These armed ultra-nationalist groups took over administrative bodies in Ukraine and fought until they managed to oust the Ukrainian government and opened the path for opposition leaders to take power on Feb. 25. The Ukrainian mainstream opposition used the EU-brokered agreement, which the Brussels-based European Commission deliberately refused to enforce, as a means of justifying the formation of a coup-imposed government.
  • In the absence of almost half the Ukrainian Verkhovna Rada, or Ukrainian Parliament, the opposition parties began to arbitrarily pass unconstitutional laws. They also unconstitutionally selected Oleksandr/Aleksandr Valentynovych Turchynov as the acting president of Ukraine before President Viktor Yanukovych was even impeached. Intimidation and violence were additionally used to secure the cooperation of any disagreeing parliamentarians or state officials in Kiev. Saying that the ultra-nationalists and fascists are marginal elements, the mainstream media networks in North America and the European Union have simply dismissed the armed ultra-nationalist groups involved in the coup that are presently integrated into the putsch regime running Kiev. The militant ultra-nationalists, however, are very influential and amassing power under the illegal premiership of Arseniy Yatsenyuk.  Yatsenyuk, himself, is from Yulia Tymoshenko’s notoriously corrupt All-Ukrainian Union Fatherland Party (Batkivshchyna) and essentially a U.S. and EU appointee. There is even a pre-coup leaked telephone interception, likely either recorded by the intelligence services of Russia or Ukraine, in which U.S. Assistant Secretary of State Victory Nuland says that Yatsenyuk will be appointed as the prime minister of the Ukrainian government that the U.S. is putting together.
  • It is unlikely that Yatsenyuk and the loosely-knit alliance of the governing parties that ran Ukraine under the Yushchenko-Tymoshenko governments, foreign-based Ukrainians, and the forces behind the Orange Revolution that form the Orangist camp which he belongs to could have gotten back into power in Ukraine without pressure, the use of force and foreign backing. Yatsenyuk was even threatened and booed by the Ukrainians gathered at Independence Square when it was announced that he would be appointed as the prime minister of the post-coup government. A vast segment of the protesters made it clear that Tymoshenko, Yatsenyuk’s party leader, was no alternative to the ousted President Viktor Yanukovych in their eyes, either, when it was announced that she wanted to run for prime minister. The Orangists do not have the support of a majority of the population, nor did they form the parliamentary majority in the Verkhovna Rada. Their Orangist president, Viktor Yushchenko, only got 5 percent of the vote in January 2010, in a show of no-confidence, whereas Viktor Yanukovych won the first and second rounds of the presidential elections in 2010. According to Victoria Nuland, the U.S. has also poured $5 billion into “democracy promotion” inside Ukraine. This is U.S. State Department doublespeak for politicized funding that Washington has sent to Ukraine to organize the Orange Revolution and its Euromaidan sequel or what can frankly be described as regime change.
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  • To rule Ukraine once more, the Orangists and their foreign backers have used and manipulated the ultra-nationalist elements of the population — some of which are openly anti-European Union — as their foot soldiers in an application of force against their democratically-elected opponents. Despite their views, the ultra-nationalists are actually more honest than the Orangist liberal figures like Arseniy Yatsenyuk. Unlike the misleading and utterly corrupt Orangist leaders, the ultra-nationalists do not hide their agendas and platforms.
  • The ultra-nationalists have inconsolably anti-Russian attitudes. Many of them also dislike a vast spectrum of other groups, including Jews, Armenians, Roma, Poles, Tatars, supporters of the Party of Regions and communists. In this context, it should come as no surprise that one of the first decisions that the post-coup regime in Kiev made was to remove the legal status of the Russian language as the regional language of half of Ukraine. Right Sector is, itself, a coalition of militant ultra-nationalists. These militants were instrumental in fighting government forces and taking over both government buildings in Kiev and regional governments in the western portion of Ukraine. Despite the protests of First Deputy Defense Minister Oleynik, Deputy Defense Minister Mozharovskiy and Defense Minister Babenk, Arseniy Yatsenyuk’s post-coup government has even given the ultra-nationalist opposition militias official status within the Ukrainian military and security forces. Yatsenyuk and the Orangists also dismissed all the officials that protested that the move would fracture the country and make the political divide in Ukraine irreversible.
  • Several members of Svoboda have been given key cabinet and government posts. One of the two junior deputy prime ministers, or assistant deputy prime ministers, is Oleksandr Sych. The ministry of agriculture and food has been given for management to Ihor Shvaika. The environment and natural resources ministry has been assigned to Andry/Andriy Mokhnyk. The defense minister is Ihor Tenyukh, a former admiral in the Ukrainian Navy who obstructed Russian naval movements in Sevastopol during the Russo-Georgian War over South Ossetia and who was later dismissed by the Ukrainian government for insubordination. Oleh Makhnitsky, another member of Svoboda, has been assigned as the new prosecutor-general of Ukraine by the coup government. Andry Parubiy, one of the founders of Svoboda, is now the post-coup secretary of the National Security and Defense Council of Ukraine (RNBO). He was the man controlling the so-called “Euromaidan security forces” that fought government forces in Kiev. His job as secretary is to represent the president and act on his behalf in coordinating and implementing the RNBO’s decisions. As a figure, Parubiy clearly illustrates how the mainstream opposition in Ukraine is integrated with the ultra-nationalists. Parubiy is an Orangist and was a leader in the Orange Revolution. He has changed parties several times. After founding Svoboda, he joined Viktor Yushchenko’s Our Ukraine before joining Yulia Tymoshenko’s Fatherland Party and being elected as one of the Fatherland Party’s deputies, or members of parliament.
  • While the mainstream media in North America and the EU look the other way about the ultra-nationalists in the coup government in Kiev, the facts speak for themselves. Both the EU and the U.S. governments have rubbed their elbows with the ultra-nationalists. Oleh Tyahnybok, the leader of Svoboda (formerly the Social Nationalist Party of Ukraine), was even part of the opposition triumvirate that all the U.S. and EU officials visiting Kiev met with while performing their political pilgrimages to Ukraine to encourage the protesters to continue with their demonstrations and riots demanding Euro-Atlantic integration. Svoboda has popularly been described as a neo-Nazi grouping. The World Jewish Congress has demanded that Svoboda be banned. The ultra-nationalist party was even condemned by the EU’s own European Parliament, which passed a motion on Dec. 13, 2012 categorically condemning Svoboda.
  • The ultra-nationalists are such an integral part of the mainstream opposition that the U.S.-supported Orangist president of Ukraine, Viktor Yushchenko, posthumously awarded the infamous Nazi collaborator Stepan Bandera the title and decoration of the “Hero of Ukraine” in 2010. Foreign audiences, however, would not know that if they relied on reportage from the likes of the U.S. state-run Radio Free Europe, which tried to protect Yushchenko because he wanted to reorient Ukraine toward the U.S. and EU. Parubiy also lobbied the European Parliament not to oppose Yushchenko’s decision. Other smaller ultra-nationalists parties were also given government posts, and several of the independent cabinet members are also aligned to these parties. Dmytro Yarosh from Right Sector (Pravyi Sektor) is the deputy secretary of the RNBO, and the Trizub Party was given the education ministry. Trizub had Sergey Kvit appointed to the post of education minister.
  • The role of the ultra-nationalists in executing the coup has been essentially ignored by the mainstream media in North America and the EU. The roots of the bloodshed in Kiev have been ignored, too. The shootings of protesters by snipers have simply been presented as the vile actions of the Ukrainian government, never taking into consideration the agitation of the armed ultra-nationalist gangs and the mainstream opposition leaders for a conflict. According to a leaked telephone conversation on Feb. 26 between Estonian Foreign Minister Urmas Paet and European Union Commissionaire Catherine Ashton, which was leaked by the Security Service of Ukraine (SBU) , the snipers who shot at protesters and police in Kiev were allegedly hired by Ukrainian opposition leaders. Estonian Foreign Minister Paet made the statements on the basis of details he was given by one of the head doctors of the medical team of the anti-government protests, Olga Bogomolets, an opponent of Viktor Yanukovych’s government who wanted it removed from power. Paet tells Ashton the following first: “There is now stronger and stronger understanding that behind the snipers, it was not Yanukovych, but it was somebody from the new coalition.” This is also corroborated by the fact that Yanukovych actually had ordered the Ukrainian riot police and security forces not to use lethal force.
  • The Estonian official then mentions that it was verified to him that the same snipers were killing people on both sides. He tells Ashton the following: “And second, what was quite disturbing, this same Olga [Bogomolets] told as well that all the evidence shows that the people who were killed by snipers from both sides, among policemen and then people from the streets, that they were the same snipers killing people from both sides.” Another important point that Paet makes to Ashton is the following: “[Dr. Olga Bogomolets] then also showed me some photos she said that as a medical doctor she can say that it is the same handwriting, the same type of bullets, and it’s really disturbing that now the new coalition, that they don’t want to investigate what exactly happened.” Past reports that the mainstream media were hostile to the ousted Ukrainian government also raise serious questions that corroborate what has been said about the snipers intentionally killing protesters to instigate regime change.
  • The Telegraph reported on Feb. 20 that “[a]t least three of the bodies displayed single bullet wounds to the heads,” and “were shot in the head, the neck or the heart. None were shot anywhere else like in the legs.” This means that the snipers were making kill shots by design, which seems like the last thing that the Ukrainian government would want to do when it was trying to appease the protesters and bring calm to Kiev. The Ukrainian journalist Alexey Yaroshevsky’s account of the sniper shootings is also worth noting, and it is backed up by footage taken by his Russian crew in Kiev.  Their footage shows armed opposition members running away from the scene of the shooting of anti-government protesters. What comes across as unusual is that the armed members of the opposition were constantly agitating to start firefights at every opportunity that they could get.
  • The commandant of the SSU, Major-General Oleksandr Yakimenko, has testified that his counter-intelligence forces were monitoring the CIA in Ukraine during the protests. According to the SSU, the CIA was active on the ground in Kiev and collaborating with a small circle of opposition figures. Yakimenko has also said that it was not the police or government forces that fired on the protesters, but snipers from the Philharmonic Building that was controlled by the opposition leader Andriy Parubiy, which he asserts was interacting with the CIA. Speaking to the Russian media, Yakimenko said that 20 men wearing “special combat clothes” and carrying “sniper rifle cases, as well as AKMs with scopes” ran out of the opposition-controlled Philharmonic Building and split into two groups of 10 people, with one taking position at the Ukraine Hotel. The anti-government protesters even saw this and asked Ukrainian police to pursue them, and even figures from Right Sector and Svoboda asked Yakimenko’s SSU to investigate and apprehend them, but Parubiy prevented it. Major-General Yakimenko has categorically stated that opposition leaders were behind the shootings. Following the release of the conversation between Paet and Ashton, the Estonian Foreign Ministry confirmed that the leak was authentic, whereas the European Commission kept silent. The mainstream media in North America and the EU either ignored it or said very little. The Telegraph even claimed that Dr. Bogomolets told it that she had not treated any government forces even though she contradicts this directly in an interview with CNN where says she treated military personnel.
  • CNN, on the other hand, quickly glossed over the story, giving it only enough attention to create the impression that the network is fairly covering the news. Opting not to give the story the airtime that it deserved, CNN instead posted it on its webpage. The conversation is immediately discredited, undermined and dismissed in the first sentence of the article, which is attributed to Foreign Minister Paet: “Don’t read too much into the conversation.” The article was deliberately structured by CNN to undermine the important information that would challenge the narrative that the U.S. mainstream media have been painting. The title, sub-titles and opening sentences of most texts act as microcosms or summaries of the articles, and in many cases, readers evaluate or decide to read the articles on the basis of what these texts communicate. Moreover, the first sentence of the article sets the tempo for readers and and influences their opinion, too. Although anyone who listens to the conversation between Paet and Ashton and considers the evidence that is being discussed would realize just how important the news was, the message being set forth by CNN was a dismissive one.
Gary Edwards

Civil Unrest Ahead - LewRockwell.com - 0 views

  • The Victimized Inner Cities
  • This social disruption has motivated the enthusiastic growth and militarization of our local police departments. The law and order crowd thrives on excessive laws and regulations that no US citizen can escape. The out-of-control war on drugs is the worst part, and it generates the greatest danger in poverty-ridden areas via out-of-control police. It is estimated that these conditions have generated up to 80,000 SWAT raids per year in the United States. Most are in poor neighborhoods and involve black homes and businesses being hit disproportionately. This involves a high percentage of no-knock attacks. As can be expected many totally innocent people are killed in the process. Property damage is routine and compensation is rare. The routine use of civil forfeiture of property has become an abomination, totally out of control, which significantly contributes to the chaos. It should not be a surprise to see resentment building up against the police under these conditions. The violent reaction against local merchants in retaliation for police actions further aggravates the situation —hardly a recipe for a safe neighborhood.
  • Civil liberties are ignored by the police, and the private property of innocent bystanders is disregarded by those resenting police violence.
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  • The entitlement mentality is a source of much anger and misunderstanding. It leads people who see themselves as victims to one conclusion: they are entitled to be taken care of.
  • If one trillion dollars per year doesn’t do the job, then make it $2 trillion. If the war on poverty’s $16 trillion hasn’t worked, make it $32 trillion.
  • The wealthy special interests, such as banks, the military-industrial complex, the medical industry, the drug industry, and many other corporatists, quickly gain control of the system.
  • Honest profits of successful entrepreneurs are quite different than profits of the corporate elite who gain control of the government and, as a consequence, accumulate obscene wealth by “robbing” the middle class.
  • To blame and destroy those who make an honest living by satisfying consumers without the use of special benefits from the government is destructive to liberty and wealth.
  • Crumbs may be thrown to the poor, but the principle of wealth transfer is hijacked and used for corporate and foreign welfare instead of wealth transfers to the poor.
  • True satisfaction comes from productive effort and self-reliance and not from a government transferring wealth in an effort to bring about an egalitarian society.
  • The people have too little confidence that most problems can be solved in a voluntary manner in a society that cherishes civil liberties. There’s never an admission that government problem-solving doesn’t work. Government-created problems are a road to poverty and resentment. Too many people believe that “free stuff” from the government can solve our problems. They mistakenly believe that deficits don’t matter and that wealth can come from a printing press.
  • The high profile episodes of police violence and overreaction are a consequence of conditions that in many ways were generated by government policy.
  • equal justice requires the end of welfare redistribution
  • Retraining the police won’t touch the complex problems that pit the police against the victims of complex social conditions generated by hate, violence and bad economic policies.
  • Redistribution is a process that is always destined to help a small minority, whether in an economy like ours that endorses central economic planning or in one run by radical fascists or communists.
  • Under an authoritarian regime, those in power take care of themselves. This always leads to poverty and discrepancy in wealth distribution.
  • Eventually the social strife that is predictable leads to an overthrow of the government.
  • The strife that we are witnessing is a reflection of a growing number of people who are recognizing the discrepancy between rich and poor, the weak and the powerful, Wall Street and Main Street.
  • Both political parties are financed by Wall Street, the big banks, and the military-industrial complex. Getting rich by being part of the government class is the problem.
  • Indeed the rich are getting richer and the poor poorer. The extreme current inequality is not a consequence of free markets and true liberty. Rather it results from the welfare state that, as always, morphs into a system that provides excesses for the powerful few.
  • The economic interventionist system under which we live today rewards those who benefit from government economic planning by the Federal Reserve, access to government contracts, and targeted special regulations to help one group over the other
  • There are two problems. First is conceding the principle that government has the moral authority to redistribute wealth. Second is believing the redistribution will be managed wisely and without corruption.
  • Police brutality and militarization may well induce a violent event far beyond what we have seen in Ferguson. It also can serve as an excuse. But it is not the root cause of turmoil. The real cause is poverty, the entitlement mentality, and the breakdown of the rule of law. Moral decay and the national police state are the real culprits.
  • We must limit the government’s role to protecting equal justice in defense of life, liberty, and property.
  • We have too many police, too many laws, and too much exemption of government officials from the crimes they commit.
  • There has to be an understanding that productive effort and self-reliance on the part of everyone is required for a free society to thrive.
  • The loss of our liberty has sharply accelerated since the 9/11 attacks. We have done to ourselves what no foreign enemy could have possibly accomplished.
  • Welfare, for the rich or poor, cannot exist without the sacrifice of the principal of property ownership.
  • The national police are made up of over 100,000 bureaucrats and police officials who carry guns to enforce federal law on the American citizens.
  • Today every American is a suspect. Our president has established a policy that an American citizen can be assassinated without even being charged with a crime.
  • The Founders and our Constitution intended that policing powers would be the responsibility of the individual states. That was forgotten a long time ago
  • the Feds are there taking charge over all local officials and property owners,
  • The Founders did not even want a standing army. They wanted only a militia.
  • Old-fashioned colonialism was deemed necessary by various European powers to secure natural resources along with control over sea lanes and markets for selling manufactured goods.
  • European-style colonialism — supporting a mercantilistic economy — came to be seen as politically unrealistic and unnecessary.
  • We are now subject to an out-of-control domestic police force while the US military maintains our Empire overseas.
  • When free-trade principles were utilized, colonialism did not die; it only changed form. Mercantilism in various forms and degrees drove trade policies of nations with strong economies and militaries.
  • The United States military presence around the world provides a “private” police force to protect US and other international companies against any local resistance or leaders that turn unfriendly. Our military presence overseas has nothing to do with protecting our freedoms and defending our Constitution.
  • The international monetary system is a powerful tool for the select few.
  • In fact, the real heroes are the ones who expose the truth and refuse to fight foreign wars for the international corporations.
  • The “one percenters,” generally speaking, are internationalists who are not champions of individual liberty and free trade. They are supporters of managed trade and international institutions like the WTO where the interests of the one percent can influence the rulings that frequently have little to do with advancing advertised goals of low tariffs and free trade.
  • Disengaging our troops from around the world and refusing to defend American neocolonialism is pursuing a course compatible with the qualities that Americans claim to stand for.
  • The obsession with continuing all the same policies has increased our poverty, increased violence between the classes, and lowered the standard of living for all except the elite one percent. And worst of all, the sacrifice of liberty was for naught.
  • Losing both liberty and the right to truly own property undermines the ability to create wealth.
  • When this process gets out-of-control the economy goes into a death spiral, in the beginning of which we currently find ourselves. Without a correction to the basic understanding of the proper role of government, the downward spiral will continue.
  • Tax revenues will continue to rise, aiding the policy of the government spending the people’s money rather than those who earned it.
  • Wall Street will be protected, and the trillions of dollars of big banks derivatives will be absorbed by the Fed, the FDIC, and ultimately by the American taxpayers in the next financial crisis.
  • There’s no doubt the poor will get poorer and the rich richer until the spirit of revolution in the people calls a halt to the systematic destruction of freedom in America.
  • Authoritarianism has overtaken our economic system as the welfare mentality takes over at every level of government.
  • Once the initiation of force by government is accepted by the people, even minimally, it escalates and involves every aspect of society. The only question that remains is just who gets to wield the power to distribute the largess to their friends and chosen beneficiaries.
  • It’s a recipe for steady growth of the government at the expense of liberties, even if official documents and laws written to limit government power are in place.
  • Restraining the few who thrive on the use of force to rule over us is the challenge. Fortunately they are outnumbered by those who would choose liberty yet lack the will to challenge the humanitarian monsters who gain support from naive and apathetic citizens.
  • The sentiments supporting secession, jury nullification, nullification of federal laws by state legislatures, and a drive for more independence from larger governments will continue.
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    "If Americans were honest with themselves they would acknowledge that the Republic is no more. We now live in a police state. If we do not recognize and resist this development, freedom and prosperity for all Americans will continue to deteriorate. All liberties in America today are under siege. It didn't happen overnight. It took many years of neglect for our liberties to be given away so casually for a promise of security from the politicians. The tragic part is that the more security was promised - physical and economic - the less liberty was protected. With cradle-to-grave welfare protecting all citizens from any mistakes and a perpetual global war on terrorism, which a majority of Americans were convinced was absolutely necessary for our survival, our security and prosperity has been sacrificed. It was all based on lies and ignorance. Many came to believe that their best interests were served by giving up a little freedom now and then to gain a better life. The trap was set. At the beginning of a cycle that systematically undermines liberty with delusions of easy prosperity, the change may actually seem to be beneficial to a few. But to me that's like excusing embezzlement as a road to leisure and wealth - eventually payment and punishment always come due. One cannot escape the fact that a society's wealth cannot be sustained or increased without work and productive effort. Yes, some criminal elements can benefit for a while, but reality always sets in. Reality is now setting in for America and for that matter for most of the world. The piper will get his due even if "the children" have to suffer. The deception of promising "success" has lasted for quite a while. It was accomplished by ever-increasing taxes, deficits, borrowing, and printing press money. In the meantime the policing powers of the federal government were systematically and significantly expanded. No one cared much, as there seemed to be enough "gravy" for the rich, th
Paul Merrell

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

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

The Purchase Of Our Republic | Zero Hedge - 0 views

  • The massive consolidation of wealth, combined with the removal of any limits on money in campaigns, has allowed for the purchase of our government. Today I am publishing a comprehensive and important guest essay, The Purchase of Our Republic, by longtime correspondent Y. Falkson.
  • Americans know that something is wrong, deeply wrong. They see signs of the problem everywhere: income inequality, growing concentration and power of mega corporations, political donations/corruption, the absence of jobs with decent salaries, the explosion of the US prison population, healthcare costs, student loan debt, homelessness, etc. etc.  However, the true causes and benefactors behind these problems are purposely hidden from view. What Americans see is Kabuki Theater of a functioning form of capitalism and democracy, but beyond this veneer our country has devolved into the exact opposite. Those who benefit from this crony capitalist state go to extreme lengths to paper over the reality and convince Americans that the system works, the American Dream is still a reality and that American democracy is in fact democratic. Below I hope to begin to outline some of the underlying dynamics and trends that have evolved in recent decades and led us so far from what we once were. As fun as it would be, the answer is not some evil conspiracy by the Illuminati, but rather the unfortunate result of three long term and mutually reinforcing components that have been attacking the fundamental roots of the structure of our Republic. The first is the increased concentr
  • ation of corporate and private wealth. Both of which are quickly yelled down in the media as anti-free market and class war hysteria. The second is the use of this wealth to capture all three branches of government in order to ensure the continued extraction of capital from the many and to the few.The rich might have climbed the ladder because they earned it, but they have then purchased government to pull up the ladder behind them. The consequence of the first two components is a democracy in name only that represents the very few.
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  • 1. Faux Capitalism = Wealth Consolidation / Income Inequality
  • While there is no true beginning to the story, we can start with the incredible build up and concentration of wealth among corporations in recent decades. The USA now boasts a cartel-like set of corporate titans in almost every industry. It goes beyond, but certainly includes, our Too Biggerer To Fail banks, merged from what was 37 banks in 1995 into a Frankenstein’s monster like 5 (Citigroup, JP Morgan-Chase, Bank of America, Wells Fargo and Goldman Sachs). In agriculture, Monsanto alone controls over 85% of all corn and soy bean crops, four companies control 83% of the beef market, 66% of the hog market and 58% of the chicken market. So while shopping at the grocery store might appear to be the manifestation of capitalism at its finest, it doesn’t take much digging to look behind the curtain to see how little competition truly exists.
  • When the average American goes to pick up some groceries, they are shopping at Walmart and buying something from P&G that is mostly made of Monsanto corn. Is that true choice? The same story plays out with our news and media (and other industries) where we have gone from 50 companies in 1983 to the big 6 which control over 90% of all media. Is choosing to watch one of 30 news channels, all of which are owned by News Corp (Rupert Murdoch) a real choice? This is not capitalism and they are not competing, not in the true sense of the word. Along with this consolidation of corporations in recent decades, their senior leaders have taken up a larger and larger piece of the pie at the expense of their employees. In particular, the ratio of CEO-to-worker pay has increased 1,000 percent since 1950. Unsurprisingly, Walmart is both the largest employer in the country and the worst CEO pay offender with a ratio of over 1000:1. This is at a time where worker productivity has increased significantly, something that historically correlated with increased pay. But no more. It’s a new twist on the old Soviet saying “we pretend to work and they pretend to pay us”, but now it’s closer to “we do all of the work and they pretend to pay us”.
  • Private Wealth: As a consequence of the royal tribute we pay to the C-suite class these days, we have likely surpassed the pre-Depression Roaring Twenties in terms of inequality.
  • This, amazingly, has only accelerated since the crisis in 2008 in thanks to bailouts, Quantitative Easing and other gifts from Congress and the Fed. The wealthy 1% and in particular the .01% have now grown their fortunes to levels that tax comprehension and even their ability to spend it (the decisions by a few billionaires such as Bill Gates to essentially donate his fortune is a tacit acknowledgement that our current system over provides wealth to a select few).
  • So what is an incredibly wealthy capitalist CEO of a mega-corporation do once they control their industry and have essentially limitless wealth? Well in a competitive market, the only way to go from the top is down and the only thing that can make that happen is competition. Consequently, competition must be avoided whenever possible.
  • To squash or prevent competition, the oligopolies and oligarchs target their resources on the one place that can make competition illegal, our government.Something to keep in mind the next time you see a corporate billionaire grandstanding about the importance of “Free Markets” when their strategy is quite the opposite. As this capture of the government has taken place we have essentially shifted from capitalism and to crony capitalism. So we now have industries that have mastered the art of faking capitalism by turning our government into one that fakes democracy. This government takeover took time, but the purchase of all 3 branches of government has almost been completed by 2014. You don’t have to take my word for it, luckily that has now been empirically proven in an analysis of over 20 years of government policy where the clear conclusion was that policy makers respond solely to those in the top 90th percentile and essentially ignore the large majority of Americans.
  • 2. Wealthy Purchase of Government Institutions / Elections
  • Purchase of the Executive Branch:
  • Let’s take a step back and take a glimpse at how the government was purchased, beginning with the executive branch. In 1980, Reagan’s election cost less than $300 million. When Bush beat Kerry in 2004, it cost almost 3x times as much, almost $900 Million. 4 years later, the 2008 election cost a record $1.3 Billion. It was in this election where Obama hammered the final nail in the coffin for government funded for elections. Obama, more so than any other candidate in recent decades had the widespread support of millions of small donors, but in the end I guess it wasn’t enough. So when Obama “leaned to the green”, it forever set the precedent that you can’t win without the backing of our nation’s oligarchs. Consequently, the money has only gushed in since as the cost of Obama’s reelection in 2012 skyrocketed to an unfathomable $7 billion. Needless to say this is slightly above the rate of inflation. Our Presidents are now preselected exclusively by a tiny fraction of Americans can have the money to fund what has become necessary for a legitimate run. Summary: Candidates spend years courting the super-rich to build up a multi-billion dollar war chest. Only those who succeed can actually run a campaign that an average American will be aware of. Then Americans get to choose one of the pre-selected “candidates”. No wonder voter turnout is so low… Executive branch, check!
  • – Note that media corporations benefit doubly as they can use their cash to fund elections, but are also the beneficiary of all that money as it is used for campaign spending.
  • Purchase of the Legislative Branch:
  • The process has progressed similarly in Congress. In 1978, outside groups spent $303,000 on congressional races. In 2012 that was up to $457,000,000. That is over 1,500 times the level in 1978. It would be funny, if it was so blatant and terrifying. By many accounts, our “leaders” in Congress spend 50% or more of their time working the phones or fundraisers rather than trying (and failing) to actually do the “people’s business”. Let’s also take a minute to appreciate the hypocrisy of anyone that pretends that the money doesn’t influence our government. Businesses do not give to politicians for charity. This is a payment for services that has proven exceedingly reliable and profitable. The ROI for money invested in purchasing Congressman is what CEO dreams are made of. No wonder the incentive is to invest in Congress rather than R&D or marketing. There are very few places in the world or times in history where you can find ROI’s in the thousands, or even the tens of thousands.
  • Review: Congressmen beg for money to get elected, make sure to vote the way your benefactors would like, consequently get more money to get elected again. If at any point they do lose or quit, they take the big payday to work for those who have been paying them all along. Legislative Branch, Check!
  • In addition, increasingly those who work on Congress (and regulators) were previously employed by these large corporations or expect to work there later. A recent example is Chris Dodd who left the Senate the head lobbyist for Hollywood at the MPAA, the guys behind SOPA and PIPA, but there are many many others.
  • Judicial Branch Endorsement of the Purchase of Government:
  • Last but not least, we have the enabling Judicial Branch. It only took a few purchased presidents to ensure the appointment of a majority of “free market” and “pro-business” judges. For instance, and disgracefully, Clarence Thomas was once legal counsel for Monsanto, but has not once recused himself from any cases involving Monsanto and always votes in their favor. These radicals have now fully endorsed and enabled the influx of money used to purchase the other branches. Specifically, 2 major decisions have completely opened the floodgates, Citizens United and McCutcheon. The first allowed unlimited contributions of corporate money into elections and brought us the notorious declaration that “corporations are people” and that “money is free speech”. This was more recently followed up with the private wealth equivalent in McCutcheon. In this ruling, Supreme Court Chief Justice John Roberts said as part of his majority opinion (presumably with a straight face) “… nor does the possibility that an individual who spends large sums may garner influence over or access to elected officials or political parties”. And with this, the Supreme Court has fully endorsed both major sources of immense wealth to purchase our elections and consequently our government. Review: The rich fund Presidential elections, Presidents nominate “business-friendly” judges and then the bought Congress approves their nominations. New judge then votes to ensure even more money is allowed to purchase elections. Judicial Branch, CHECK!
  • 3. A Faux Republic Dependent Upon the Funders and Not the Voters
  • The Founder’s Hope and the Sad Reality:
  • Acknowledging where we are as a country, it is often helpful to look to where we started for some perspective. Unsurprisingly, this type of problem was not overlooked back in the 18th century. In 1776, James Madison stated that his goal was to design a republic in which “powerful interest groups would be rendered incapable of subdoing the general will”. Madison hoped, perhaps naively, that factions would be thwarted by competing with other factions. Sadly, we are now in a time where factions (aka wealthy special interests) subdue the will of the people and ensure the government responds to them alone on those issues where they have a “special interest” and consequently asymmetric stakes in the game (Charles Hugh Smith). As a result, these groups essentially collude to allocate their resources to their own issues, but do not “thwart” or compete with other factions as they do the same. It’s a pretty great system, as long as you’re one of the wealthy few who can use their money to drown out the poor and voiceless many. And just like that, what was once a Republic has become a corrupt shell of its past self. All the signs are still there; votes, elections, campaigns, branches of government, etc., but behind the scenes the only ones represented are those who can afford to be heard.
  • Summary: This massive consolidation of wealth, combined with the removal of any limits on money in campaigns, has allowed for the purchase of our government, or as Dick Durban once stated, “frankly they [the banks in this case] own the place”. If money = free speech, then those with all the money, have all the free speech.
  • What Might Help? Now that I have likely and thoroughly depressed the reader, let’s bounce around some ideas for what can be done. As stated in the beginning, this is not an unknown problem and many people are promoting a number of ways to fix or at least ameliorate the problem. I will briefly describe just a few which I think provide some direction any of us could easily implement or support.
  • Change the Rules: Laurence Lessig of Harvard Law has put forward a visionary proposal for re-writing the way that campaigns are financed in his book, Republic, Lost: How Money Corrupts Congress--and a Plan to Stop It. Put simply, he would like to empower every voter with a stipend, say $150 per election to give to whatever candidate or candidates they prefer. If you would like to accept this money, you would need to forgo any other contributions or support (one would hope including the indirect PAC kind). This would actually provide even more money than is used in current elections, but would effectively democratize the funding process. While there would still be a “funding election” that takes place before the actual election, the funding would not be unequally provided. Lessig’s work has only begun, as this sort of bill or likely constitutional reform is nearly impossible to achieve, but he has undertaken and I assume will continue to implement many brave and creative ways of bringing about the change all American’s should support. Most recently he has suggested we begin to fund, ironically enough, a Super PAC to end all Super PACs. It would be funded with the solitary goal of changing how money impacts our elections. Please support them here: www.mayone.us/
  • Change Our Day-to-Day: At the more micro level, Charles Hugh Smith believes that we will inevitably see our overly centralized and inefficient system erode away as it is replaced by more resilient, local and efficient businesses and societies outside of the current system. With that in mind, he recommends that “all anyone can do is the basic things--lower our energy footprint, stay healthy and avoid unnecessary medications and procedures, support local businesses, organic food growers, etc. In other words, what we can do is support local businesses that are part of the emerging economy rather than support corporate cartels.” Your Vote Does Matter: Do you live in Ohio, Florida or New Hampshire? Probably not. Despite what we are told every 4 years, there are actually states outside of the “swing states”, and even more surprising, the very large majority of Americans live in those states where your “vote doesn’t matter”. New Yorkers an Californians all know their state will turn Blue no matter who the candidates are and either don’t vote at all, or often vote for the Blue team in order to feel like they are on the winning side.
  • The truth is that if you see the election as Red vs. Blue, you vote probably doesn’t matter. But here is the trick, if all the people who think their vote didn’t matter decided to vote for whom they might actually believe in, then their votes just might matter.
  • What if all the growing number of “Independents” (who usually still vote Blue), chose to vote for a third party? What if a third party candidate won a state like New York or California? What if that candidate was one whose primary promise to the voters was to champion a change to the role of money in government (perhaps in line with what Lessig proposes)? Would you vote for such a person?I would argue you should. If California alone (with 55 electoral votes) were to vote for a 3rd party that would likely prevent either Red or Blue candidate from winning the requisite 270 electoral votes.
  • Think about the message that would send to both parties. I would predict that both sides would start to bend over backwards for an endorsement from that 3rd party and they would have to get it by taking up the same primary cause for reforming money in government. Consequently, at the root of our corrupted system which is perpetually ignored as both sides might suddenly become the big issue of the election. Then maybe we might begin to turn things around.
  • Sources: Charles Hugh Smith (oftwominds, Surivival+, etc.), Yves Smith (Naked Capitalism, Econned), Laurence Lessig (Republic Lost, multiple TED Talks), Matt Taibbi (blog at Rolling Stone and now at The Intercept), Zero Hedge, John Robb, Max Keiser, Clay Shirky (Cognitive Surplus), Aldous Huxley (Brave New World, Brave New World Revisited), George Orwell (1984), Michael Lewis, Daniel Kahneman (Thinking Fast and Slow), James Richards (Currency Wars), Han Joon Chang (23 Things They Don’t Tell You About Capitalism) and Joseph Stiglitz (Mismeasuring Our Lives) 
Paul Merrell

DOJ Seeks Removal Of Restrictions On Computer Search Warrants - 0 views

  • The Justice Department recently submitted proposed new rules on the procedures and practices of the department’s agencies and bureaus. Among the suggested changes is a modification of the Federal Rules of Criminal Procedure Rule 41(b), which empowers a federal court to issue a warrant allowing the federal government to conduct a search of a computer or computer network involved in a criminal investigation. Under current regulations, a warrant issued by a federal court is only valid in that court’s district. As there are 94 federal judicial districts, investigating a widespread attack may require either petitioning dozens of district courts or acting extrajudicially by not seeking a warrant. An extrajudicial investigation, however, cannot be used if criminal convictions are sought, as evidence gathered in this manner is not typically admissible in court. The Justice Department is seeking to make remote access warrants to search, seize and copy electronic information valid for all federal districts.
  • The Justice Department argues that due to the sophistication of cyber-criminals, an offending computer or computer cluster can sit in a district separate from the district where the hackers that infected the target computer anonymously are and separate from the investigators’ district. “Criminals are using multiple computers in many districts simultaneously as part of complex criminal schemes, and effectively investigating and disrupting these schemes often requires remote access to Internet-connected computers in many different districts,” wrote then-acting Assistant Attorney General Mythili Raman in a September letter to the Advisory Committee on the Criminal Rules. “Botnets are a significant threat to the public: they are used to conduct large-scale denial of service attacks, steal personal and financial data, and distribute malware designed to invade the privacy of users of the host computers,” Raman continued. In the letter, Raman cited an investigation of a child porn site that uses The Onion Router Network, or Tor, to anonymize its traffic. The Justice Department argues that it knows the site’s hosting server location, but without a warrant local to the server, the department is prevented from retrieving the server’s user records — including IP and MAC addresses. In most cases, however, law enforcement do not know the physical location of the site’s server, making it impossible to request a specific warrant.
  • In these cases, the Justice Department could request a blanket warrant. This would allow the department to set up a “zero-day” attack on the server — an attack exploiting a manufacturer-unknown or -permitted security flaw, allowing access to the system’s operating software. However, a Texas judge denied the FBI access to such a warrant, saying the Justice Department’s use of “zero-day” attacks in its investigation exposes the public and the target to unknown risks. One typical type of a “zero-day” attack is an infected email that could affect a large number of innocent people if the target used a public computer to access his email. The FBI planned to install a Remote Administration Tool, or RAT, which would distribute such emails in a partially-targeted spam mail distribution. Last year, Federal Magistrate Judge Stephen Smith of the Houston Division of the Southern District of Texas ruled that this was a gross overreach of investigatory intrusion, blocking the plan temporarily. A “zero-day” attack has the potential to activate and control the targeted computer’s peripherals, such as webcams and microphones.
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  • Following this ruling, based on the assumptions that federal law enforcement fundamentally act in good faith and that there may be a legitimate need for remote exploitation of computer data, the Justice Department sought to introduce changes to the rules that would overcome Smith’s objections. The proposed change to Rule 41(b) would allow magistrate judges “… to issue a warrant to use remote access to search electronic storage media and to seize electronically stored information located within or outside that district.” The Justice Department has indicated that it wants warrants permitting multiple computers to be searched at the same time, as well as permission to search all of the email and social media accounts accessible from a single computer. Such access would constitute a violation of the Electronic Communications Privacy Act, as the government, under the act, must make demonstrate probable cause to each targeted service provider and obtain and serve a warrant for each service provider. A warrant to search every account active on a computer would be actively bypassing the act’s numerous safeguards.
  • Privacy advocates fear that this rule change would allow prosecutors and the Justice Department to seek out magistrates likely to give them their requested warrants, creating a situation in which the federal government could have a “warrant shop” with just one judge for the whole of the nation. In light of allegations of federal government over-policing — including revelations of aggressive domestic and international electronic spying by the FBI and the National Security Agency — many advocates argue that an examination of the federal government’s commitment to the Fourth Amendment is needed. “The proposed amendment would significantly expand the government’s authority to conduct remote searches of electronic storage media,” the American Civil Liberties Union wrote in a memorandum early last month. “It would also expand the government’s power to engage in computer hacking in the course of criminal investigations, including through the use of malware and other techniques that pose a risk to internet security and that raise Fourth Amendment and policy concerns. “In light of these concerns, the ACLU recommends that the Advisory Committee exercise extreme caution before granting the government new authority to remotely search individuals’ electronic data.” The rules are scheduled to be discussed at the meeting of the Judiciary’s Committee on Rules of Practice and Procedure later this month.
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    The proposed rule change is at pp. 499-501 here. http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/Agenda%20Books/Standing/ST2014-05.pdf#page499 (very large PDF).  This is not just about the government being granted permission to exploit vulnerabilities unknown to the computer owner; the issue arose in a case where the government sought judicial permission to implant a Trojan Horse in a suspect's computer. Moreover, the proposed rule goes far beyond the confines of that case, purporting to authorize the government to skip merrily along searching computers not specified in the warrant, along the purported botnet. To put the icing on the cake, the government wants to be relieved from the requirement that they apply for a warrant in the district in which the computer to be searched is located. ("Oh, Goody! Let's start shopping around for the judges we like instead of the ones we are now required to persuade. What? The Mississippi judge refused to sign the warrant? Oh well, let's try it with that other judge we like, the one in Gnome, Alaska.") In other words, what the government seeks is authority for "general warrants," the very evil that the 4th Amendment was designed to outlaw. Even more outrageously, the proposed rule provides in part: "For a warrant to use remote access to search electronic storage media and seize or copy electronically stored information, the officer must make reasonable efforts to serve a copy of the warrant on the person whose property *was* searched or whose information *was* seized or copied. Service may be accomplished by any means, including electronic means, reasonably calculated to reach that person." Not the use of the past tense "was." So after they have drained your computer of all its data, they may permissibly install a batch file that will display a copy of the warrant on your monitor the next time you boot your computer. With a big red lipstick imprint of a kiss imprinted in the warrant's bottom margin, no doubt
  •  
    The proposed rule change is at pp. 499-501 here. http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/Agenda%20Books/Standing/ST2014-05.pdf#page499 (very large PDF).  This is not just about the government being granted permission to exploit vulnerabilities unknown to the computer owner; the issue arose in a case where the government sought judicial permission to implant a Trojan Horse in a suspect's computer. Moreover, the proposed rule goes far beyond the confines of that case, purporting to authorize the government to skip merrily along searching computers not specified in the warrant, along the purported botnet. To put the icing on the cake, the government wants to be relieved from the requirement that they apply for a warrant in the district in which the computer to be searched is located. In other words, what the government seeks is authority for "general warrants," the very evil that the 4th Amendment was designed to outlaw. Even more outrageously, the proposed rule provides in part: "For a warrant to use remote access to search electronic storage media and seize or copy electronically stored information, the officer must make reasonable efforts to serve a copy of the warrant on the person whose property *was* searched or whose information *was* seized or copied. Service may be accomplished by any means, including electronic means, reasonably calculated to reach that person." Not the use of the past tense "was." So after they have drained your computer of all its data, they may permissibly install a batch file that will display a copy of the warrant on your monitor the next time you boot your computer. With a big red lipstick imprint of a kiss imprinted at the bottom.  To be continued after this is intially posted to Diigo so the content isn't cut off.   
Paul Merrell

DOJ's Motion to Dismiss in Smith v. Obama, the case challenging the legality of the war... - 0 views

  • As I noted in an earlier post, Nathan Smith, a U.S. Army captain deployed to Kuwait as part of the campaign against ISIL, Operation Inherent Resolve, has sued the President, seeking a declaration that Congress has not authorized the hostilities in Iraq and Syria and that therefore the War Powers Resolution requires the President to remove U.S. forces from hostilities in those nations. On Tuesday, the Department of Justice filed a motion to dismiss the case. Its brief in support of the motion includes one argument that I think is correct (albeit not for all the reasons the government offers) — namely, that Smith lacks standing to sue. That ought to be sufficient to have the case dismissed. The brief also includes an argument on the merits (albeit not designated as such) that is very interesting and potentially important — an account of how Congress has allegedly authorized Inherent Resolve in three ways: (i) in the 2001 AUMF; (ii) in the 2002 AUMF; and (iii) in current appropriations statutes. The heart of the brief, however, is devoted to a third argument — that Judge Koller-Kotelly must dismiss the case on the basis of the political question doctrine — that is not only wrong, but that simply ignores the Supreme Court’s recent (and repeated) repudiation of that very argument.
  • On page 39 of its 45-page brief, the government finally gets around to the reason why the court should dismiss the complaint: Smith lacks standing. Importantly, Smith’s theory of standing is not that he — an Army captain deployed to perform intelligence services in Kuwait — is more likely to be injured or killed by virtue of the President’s decision to deploy troops into hostilities in Iraq and Syria. It is, instead, that the President’s alleged failure to comply with the War Powers Act results in Captain Smith’s own violation of his officer’s oath to “support and defend” the Constitution “against all enemies, foreign and domestic,” and to “bear true faith and allegiance” to the Constitution.
  • The government’s standing argument begins (p. 35) by suggesting that “[p]laintiff’s claim that he is being forced to betray his oath is insufficient to establish standing because the violation of an oath, by itself, is not an injury in fact.” The cases the government cites for that proposition, however, do not say that a forced oath violation would not be an injury in fact — and that’s not a question the judge needs to resolve. What the cases establish, instead, is the point the government finally argues at page 39 — namely, that a government officer does not violate his oath by complying with superiors’ orders, even if it turns out that the law prohibits the military operation in which those orders are issued. Indeed, Smith would not violate his oath of office even if his superiors’ orders themselves were unauthorized, or if the intelligence activities he is ordered to performed were unauthorized. But he does not allege even those things (as I discuss below, he does not, for instance, alleged that he is being ordered to do anything unlawful). Instead, he merely argues that because President Obama should have withdrawn troops from Syria and Iraq 60 days after their deployment, Smith himself is violating his oath to “bear true faith and allegiance to the Constitution.” This is a non sequitur: Even if Smith is right that the continuation of Operation Inherent Resolve is unlawful, that would not mean that he is acting in violation of his oath. (Much more on this in my earlier post.) And that simple fact is reason enough for Judge Koller-Kotelly to dismiss the case.
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  • One of Smith’s counsel, Professor Bruce Ackerman, argues that this reason for rejecting the oath-based theory of standing ignores the Supreme Court’s 1804 decision in Little v. Barreme. Little, however, is not on point. In that case, Navy Captain Little was sued by the owners of a Danish ship for damages caused when Little seized that neutral ship. The Court held that Little could be liable, notwithstanding the fact that he was following orders, because the capture violated a implicit statutory prohibition on the military’s seizure of ships sailing from France to the United States. In this case, however, Captain Smith has not argued — nor could he — that he has been ordered to do anything unlawful (in violation of a statute), let alone that he has been ordered to do something that would subject him to possible liability for damages. He is, instead, arguing that President Obama violated a statute. That is not enough to establish Smith’s standing to sue.
  • The government’s main argument, to which it devotes far too many pages, is that the judge must dismiss the case because it raises a “political question” that courts cannot answer. This is flatly wrong — and it ignores several controlling precedents, including the Supreme Court’s recent 8-1 rejection of virtually the same government argument in Zivotofsky v. Clinton.
  • The most interesting thing about the government’s brief — and by far the most important aspect of it, for public purposes apart from the lawsuit itself — is that, in the section ostensibly arguing that the case is nonjusticiable (see pp. 25-30, and also pp. 4-14), DOJ actually offers the Executive branch’s most detailed defense yet about why Operation Inherent Resolve is congressionally authorized. As some of us predicted, the government relies on three arguable authorizations, any one of which would be sufficient to defeat Smith’s WPR claim if the courts were to reach the merits. In this post I’m not going to assess the merits of the three arguments. For now, my purpose is only to describe them, and to raise one issue with respect to the third. i. First, the government argues that the 2001 AUMF authorizes the operation against ISIL.
  • Second, the government argues that the 2002 AUMF also authorizes Operation Inherent Resolve, just as it authorized operations in Iraq against AQI (which became ISIL) from 2003 to 2011, after the Hussain regime fell.
  • Finally, and most interestingly (in part because the government has not previously made this argument), DOJ argues that a recent “unbroken stream” of appropriations statutes not only confirm the authorities allegedly conferred by the 2001 and 2002 AUMFs, but also offer their own, independent congressional authorization.
  • Two things are fairly clear from this: The members of Congress approve of Operation Inherent Resolve — indeed, there’s virtually no opposition. And Congress has (most likely) appropriated funds to pay for it. The operative question, however, is whether Congress’s appropriations also serve as an authorization that would supersede the requirement of WPR section 5(b). The government brief alludes to one important argument that the plaintiff will undoubtedly raise: Section 8(a)(1) of the WPR provides that, for purposes of tolling the 60-day clock of section 5(b), “[a]uthority to introduce United States Armed Forces into hostilities or into situations wherein involvement in hostilities is clearly indicated by the circumstances shall not be inferred (1) from any provision of law . . . including any provision contained in any appropriations Act, unless such provision specifically authorizes the introduction of United States Armed Forces into hostilities or into such situations and states that it is intended to constitute specific statutory authorization within the meaning of this chapter.” Obviously, the 2016 Act does not satisfy that requirement. Is that fatal to the appropriations-as-authorization argument?
  • As the Office of Legal Counsel 50 U.S.C. 1542 and 1543). These provisions might be read simply to convey that the executive must continue to comply with the consultation and reporting requirements of WPR sections 3 and 4, even after the 2016 Act authorizes the introduction of troops into hostilities in Iraq and Syria. Or they might alternatively be construed to also specify that the Act is not providing the authority that section 5(b) of the WPR calls for.
  • Not surprisingly, DOJ argues for the former view (pp. 27-28 of the brief): “[I]n the few provisions in which Congress did reference the War Powers Resolution, to clarify that no funds made available for Operation Inherent Resolve are to be used ‘in contravention’ of the Resolution, Congress signaled its agreement that the President’s counter-ISIL military actions were authorized by simultaneously funding Operation Inherent Resolve. If Congress believed that the United States had been conducting airstrikes and other counter-ISIL military activities ‘in contravention of the War Powers Resolution,’ it would have made no sense for Congress to use the ‘in contravention’ proviso in the same laws that make funds available for the express purpose of continuing those military activities.” That’s not a bad argument, at least at first glance; but it’s not a slam-dunk, either, in part because appropriations provisions do not necessarily establish authorizations. It’ll be interesting to see how Captain Smith’s lawyers respond to this particular aspect of the merits argument. I doubt Judge Koller-Kotelly will reach it, however, because she is likely to dismiss the case for want of standing.
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    I've read the brief. I don't think the implied partial repeal of the War Powers Resolution argument should fly. The relevant provision establishes a rule of interpretation of later statutes and the appropriations bills neither reject the rule of interpretation nor specifically provide authorization for use of military force. They just authorize funding. On the standing issue, I think the DoJ position is correct; the oath of office applies only to senior officers who make the decision to initiate a war. But DoJ may have opened the door to a more compelling standing argument by arguing that the war does not constitute a war crime, a crime against peace, or a crime against humanity under international law. DoJ did not need to make that argument because Smith had not alleged in his complaint that he was being ordered to commit such crimes, but by doing so DoJ waives any argument that such issues are beyond the scope of Smith's standing and the evidence that the Iraq and Syrian wars are illegal under international law is, to say the least, strong.
Paul Merrell

Reported US-Syrian Accord on Air Strikes | Consortiumnews - 1 views

  • Exclusive: A problem with President Obama’s plan to expand the war against ISIS into Syria was always the risk that Syrian air defenses might fire on U.S. warplanes, but now a source says Syria’s President Assad has quietly agreed to permit strikes in some parts of Syria, reports Robert Parry.
  • The Obama administration, working through the Russian government, has secured an agreement from the Syrian regime of Bashar al-Assad to permit U.S. airstrikes against Islamic State targets in parts of Syria, according to a source briefed on the secret arrangements. The reported agreement would clear away one of the chief obstacles to President Barack Obama’s plan to authorize U.S. warplanes to cross into Syria to attack Islamic State forces – the concern that entering Syrian territory might prompt anti-aircraft fire from the Syrian government’s missile batteries.
  • In essence, that appears to be what is happening behind the scenes in Syria despite the hostility between the Obama administration and the Assad government. Obama has called for the removal of Assad but the two leaders find themselves on the same side in the fight against the Islamic State terrorists who have battled Assad’s forces while also attacking the U.S.-supported Iraqi government and beheading two American journalists.
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  • The usual protocol for the U.S. military – when operating in territory without a government’s permission – is to destroy the air defenses prior to conducting airstrikes so as to protect American pilots and aircraft, as was done with Libya in 2011. However, in other cases, U.S. intelligence agencies have arranged for secret permission from governments for such attacks, creating a public ambiguity usually for the benefit of the foreign leaders while gaining the necessary U.S. military assurances.
  • Just last month, Obama himself termed the strategy of arming supposedly “moderate” Syrian rebels “a fantasy.” He told the New York Times’ Thomas L. Friedman: “This idea that we could provide some light arms or even more sophisticated arms to what was essentially an opposition made up of former doctors, farmers, pharmacists and so forth, and that they were going to be able to battle not only a well-armed state but also a well-armed state backed by Russia, backed by Iran, a battle-hardened Hezbollah, that was never in the cards.” Obama’s point would seem to apply at least as much to having the “moderate” rebels face down the ruthless Islamic State jihadists who engage in suicide bombings and slaughter their captives without mercy. But this “fantasy” of the “moderate” rebels has a big following in Congress and on the major U.S. op-ed pages, so Obama has included the $500 million in his war plan despite the risk it poses to Assad’s acquiescence to American air attacks.
  • In a national address last week, Obama vowed to order U.S. air attacks across Syria’s border without any coordination with the Syrian government, a proposition that Damascus denounced as a violation of its sovereignty. So, in this case, Syria’s behind-the-scenes acquiescence also might provide some politically useful ambiguity for Obama as well as Assad. Yet, this secret collaboration may go even further and include Syrian government assistance in the targeting of the U.S. attacks, according to the source who spoke on condition of anonymity. That is another feature of U.S. military protocol in conducting air strikes – to have some on-the-ground help in pinpointing the attacks. As part of its public pronouncements about the future Syrian attacks, the Obama administration sought $500 million to train “vetted” Syrian rebels to handle the targeting tasks inside Syria as well as to carry out military ground attacks. But that approach – while popular on Capitol Hill – could delay any U.S. airstrikes into Syria for months and could possibly negate Assad’s quiet acceptance of the U.S. attacks, since the U.S.-backed rebels share one key goal of the Islamic State, the overthrow of Assad’s relatively secular regime.
  • Without Assad’s consent, the U.S. airstrikes might require a much wider U.S. bombing campaign to first target Syrian government defenses, a development long sought by Official Washington’s influential neoconservatives who have kept “regime change” in Syria near the top of their international wish list. For the past several years, the Israeli government also has sought the overthrow of Assad, even at the risk of Islamic extremists gaining power. The Israeli thinking had been that Assad, as an ally of Iran, represented a greater threat to Israel because his government was at the center of the so-called Shiite crescent reaching from Tehran through Damascus to Beirut and southern Lebanon, the base for Hezbollah.
  • The thinking was that if Assad’s government could be pulled down, Iran and Hezbollah – two of Israel’s principal “enemies” – would be badly damaged. A year ago, then-Israeli Ambassador to the United States Michael Oren articulated this geopolitical position in an interview with the Jerusalem Post. “The greatest danger to Israel is by the strategic arc that extends from Tehran, to Damascus to Beirut. And we saw the Assad regime as the keystone in that arc,” Oren said. “We always wanted Bashar Assad to go, we always preferred the bad guys who weren’t backed by Iran to the bad guys who were backed by Iran.” He said this was the case even if the other “bad guys” were affiliated with al-Qaeda. More recently, however, with the al-Qaeda-connected Nusra Front having seized Syrian territory adjacent to the Israeli-occupied Golan Heights – forcing the withdrawal of UN peacekeepers – the balance of Israeli interests may be tipping in favor of preferring Assad to having Islamic extremists possibly penetrating directly into Israeli territory.
  • In the longer term, by working together to create political solutions to various Mideast crises, the Obama-Putin cooperation threatened to destroy the neocons’ preferred strategy of escalating U.S. military involvement in the region. There was the prospect, too, that the U.S.-Russian tag team might strong-arm Israel into a peace agreement with the Palestinians. So, starting last September – almost immediately after Putin helped avert a U.S. air war against Syria – key neocons began taking aim at Ukraine as a potential sore point for Putin. A leading neocon, Carl Gershman, president of the U.S.-government-funded National Endowment for Democracy, took to the op-ed pages of the neocon Washington Post to identify Ukraine as “the biggest prize” and explaining how its targeting could undermine Putin’s political standing inside Russia. “Ukraine’s choice to join Europe will accelerate the demise of the ideology of Russian imperialism that Putin represents,” Gershman wrote. “Russians, too, face a choice, and Putin may find himself on the losing end not just in the near abroad but within Russia itself.” At the time, Gershman’s NED was funding scores of political and media projects inside Ukraine.
  • The Russian Hand Besides the tactical significance of U.S. intelligence agencies arranging Assad’s tacit acceptance of U.S. airstrikes over Syrian territory, the reported arrangement is also significant because of the role of Russian intelligence serving as the intermediary. That suggests that despite the U.S.-Russian estrangement over the Ukraine crisis, the cooperation between President Obama and Russian President Vladimir Putin has not been extinguished; it has instead just gone further underground. Last year, this growing behind-the-scenes collaboration between Obama and Putin represented a potential tectonic geopolitical shift in the Middle East. In the short term, their teamwork produced agreements that averted a U.S. military strike against Syria last September (by getting Assad to surrender his chemical weapons arsenal) and struck a tentative deal with Iran to constrain but not eliminate its nuclear program.
  • Direct attacks on Israel would be a temptation to al-Nusra Front, which is competing for the allegiance of young jihadists with the Islamic State. While the Islamic State, known by the acronyms ISIS or ISIL, has captured the imaginations of many youthful extremists by declaring the creation of a “caliphate” with the goal of driving Western interests from the Middle East, al-Nusra could trump that appeal by actually going on the offensive against one of the jihadists’ principal targets, Israel. Yet, despite Israel’s apparent rethinking of its priorities, America’s neocons appear focused still on their long-held strategy of using violent “regime change” in the Middle East to eliminate governments that have been major supporters of Lebanon’s Hezbollah and Palestine’s Hamas, i.e. Syria and Iran. One reason why Obama may have opted for a secretive overture to the Assad regime, using intelligence channels with the Russians as the middlemen, is that otherwise the U.S. neocons and their “liberal interventionist” allies would have howled in protest.
  • By early 2014, American neocons and their “liberal interventionist” pals were conspiring “to midwife” a coup to overthrow Ukraine’s elected President Viktor Yanukovych, according to a phrase used by U.S. Ambassador Geoffrey Pyatt in an intercepted phone conversation with Assistant Secretary of State for European Affairs Victoria Nuland, who was busy handpicking leaders to replace Yanukovych. A neocon holdover from George W. Bush’s administration, Nuland had been a top aide to Vice President Dick Cheney and is married to prominent neocon Robert Kagan, a co-founder of the Project for a New American Century which prepared the blueprint for the neocon strategy of “regime change” starting with the 2003 U.S.-led invasion of Iraq.
  • The U.S.-backed coup ousted Yanukovych on Feb. 22 and sparked a bloody civil war, leaving thousands dead, mostly ethnic Russians in eastern Ukraine. But the Gershman-Nuland strategy also drove a deep wedge between Obama and Putin, seeming to destroy the possibility that their peace-seeking collaboration would continue in the Middle East. [See Consortiumnews.com’s “Neocons’ Ukraine-Syria-Iran Gambit.”] New Hope for ‘Regime Change’ The surprise success of Islamic State terrorists in striking deep inside Iraq during the summer revived neocon hopes that their “regime change” strategy in Syria might also be resurrected. By baiting Obama to react with military force not only in Iraq but across the border in Syria, neocons like Sens. John McCain and Lindsey Graham put the ouster of Assad back in play.
  • In a New York Times op-ed on Aug. 29, McCain and Graham used vague language about resolving the Syrian civil war, but clearly implied that Assad must go. They wrote that thwarting ISIS “requires an end to the [civil] conflict in Syria, and a political transition there, because the regime of President Bashar al-Assad will never be a reliable partner against ISIS; in fact, it has abetted the rise of ISIS, just as it facilitated the terrorism of ISIS’ predecessor, Al Qaeda in Iraq.” Though the McCain-Graham depiction of Assad’s relationship to ISIS and al-Qaeda was a distortion at best – in fact, Assad’s army has been the most effective force in pushing back against the Sunni terrorist groups that have come to dominate the Western-backed rebel movement – the op-ed’s underlying point is obvious: a necessary step in the U.S. military operation against ISIS must be “regime change” in Damascus.
  • That would get the neocons back on their original track of forcing “regime change” in countries seen as hostile to Israel. The first target was Iraq with Syria and Iran always meant to follow. The idea was to deprive Israel’s close-in enemies, Lebanon’s Hezbollah and Palestine’s Hamas, of crucial support. But the neocon vision got knocked off track when Bush’s Iraq War derailed and the American people balked at extending the conflict to Syria and Iran. Still, the neocons retained their vision even after Bush and Cheney departed. They also remained influential by holding onto key positions inside Official Washington – at think tanks, within major news outlets and even inside the Obama administration. They also built a crucial alliance with “liberal interventionists” who had Obama’s ear. [See Consortiumnews.com’s “The Dangerous Neocon-R2P Alliance.”]
  • The neocons’ new hope arrived with the public outrage over ISIS’s atrocities. Yet, while pushing to get this new war going, the neocons have downplayed their “regime change” agenda, getting Obama to agree only to extend his anti-ISIS bombing campaign from Iraq into Syria. But it was hard to envision expanding the war into Syria without ousting Assad. Now, however, if the source’s account is correct regarding Assad’s quiet assent to U.S. airstrikes, Obama may have devised a way around the need to bomb Assad’s military, an maneuver that might again frustrate the neocons’ beloved goal of “regime change.”
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    Robert Parry lands another major scoop. But beware of government officials who leak government plans because they do not invariably speak the truth.  I am particularly wary of this report because Obama's planned arming and training of the "moderate Syrian opposition" was such a patent lie. The "moderate Syrian opposition" disappeared over two years ago as peaceful protesters were replaced by Saudi, Qatari, Turkish, and American-backed Salafist mercenaries took their place. Up until this article, there has been every appearance that the U.S. was about to become ISIL's Air Force in Syria. In other words, there has been a steady gushing of lies from the White House on fundamental issues of war and peace. In that light, I do not plan to accept this article as truth before I see much more confirmation that ISIL rather than the Assad government is the American target in Syria. We have a serial liar in the White House.
Paul Merrell

Secret to Prism program: Even bigger data seizure - 0 views

  • The revelation of Prism this month by the Washington Post and Guardian newspapers has touched off the latest round in a decade-long debate over what limits to impose on government eavesdropping, which the Obama administration says is essential to keep the nation safe. But interviews with more than a dozen current and former government and technology officials and outside experts show that, while Prism has attracted the recent attention, the program actually is a relatively small part of a much more expansive and intrusive eavesdropping effort. Americans who disapprove of the government reading their emails have more to worry about from a different and larger NSA effort that snatches data as it passes through the fiber optic cables that make up the Internet's backbone. That program, which has been known for years, copies Internet traffic as it enters and leaves the United States, then routes it to the NSA for analysis.
  • Whether by clever choice or coincidence, Prism appears to do what its name suggests. Like a triangular piece of glass, Prism takes large beams of data and helps the government find discrete, manageable strands of information. The fact that it is productive is not surprising; documents show it is one of the major sources for what ends up in the president's daily briefing. Prism makes sense of the cacophony of the Internet's raw feed. It provides the government with names, addresses, conversation histories and entire archives of email inboxes.
  • The NSA is prohibited from spying on Americans or anyone inside the United States. That's the FBI's job and it requires a warrant. Despite that prohibition, shortly after the Sept. 11 terrorist attacks, President George W. Bush secretly authorized the NSA to plug into the fiber optic cables that enter and leave the United States, knowing it would give the government unprecedented, warrantless access to Americans' private conversations. Tapping into those cables allows the NSA access to monitor emails, telephone calls, video chats, websites, bank transactions and more. It takes powerful computers to decrypt, store and analyze all this information, but the information is all there, zipping by at the speed of light. "You have to assume everything is being collected," said Bruce Schneier, who has been studying and writing about cryptography and computer security for two decades. The New York Times disclosed the existence of this effort in 2005. In 2006, former AT&T technician Mark Klein revealed that the company had allowed the NSA to install a computer at its San Francisco switching center, a key hub for fiber optic cables.
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  • Many of the people interviewed for this report insisted on anonymity because they were not authorized to publicly discuss a classified, continuing effort. But those interviews, along with public statements and the few public documents available, show there are two vital components to Prism's success. The first is how the government works closely with the companies that keep people perpetually connected to each other and the world. That story line has attracted the most attention so far. The second and far murkier one is how Prism fits into a larger U.S. wiretapping program in place for years.
  • The government has said it minimizes all conversations and emails involving Americans. Exactly what that means remains classified. But former U.S. officials familiar with the process say it allows the government to keep the information as long as it is labeled as belonging to an American and stored in a special, restricted part of a computer. That means Americans' personal emails can live in government computers, but analysts can't access, read or listen to them unless the emails become relevant to a national security investigation. The government doesn't automatically delete the data, officials said, because an email or phone conversation that seems innocuous today might be significant a year from now. What's unclear to the public is how long the government keeps the data. That is significant because the U.S. someday will have a new enemy. Two decades from now, the government could have a trove of American emails and phone records it can tap to investigative whatever Congress declares a threat to national security.
  • The Bush administration shut down its warrantless wiretapping program in 2007 but endorsed a new law, the Protect America Act, which allowed the wiretapping to continue with changes: The NSA generally would have to explain its techniques and targets to a secret court in Washington, but individual warrants would not be required. Congress approved it, with Sen. Barack Obama, D-Ill., in the midst of a campaign for president, voting against it.
  • That's one example of how emails belonging to Americans can become swept up in the hunt. In that way, Prism helps justify specific, potentially personal searches. But it's the broader operation on the Internet fiber optics cables that actually captures the data, experts agree. "I'm much more frightened and concerned about real-time monitoring on the Internet backbone," said Wolf Ruzicka, CEO of EastBanc Technologies, a Washington software company. "I cannot think of anything, outside of a face-to-face conversation, that they could not have access to."
  • When the Protect America Act made warrantless wiretapping legal, lawyers and executives at major technology companies knew what was about to happen.
  • For years, the companies had been handling requests from the FBI. Now Congress had given the NSA the authority to take information without warrants. Though the companies didn't know it, the passage of the Protect America Act gave birth to a top-secret NSA program, officially called US-98XN. It was known as Prism. Though many details are still unknown, it worked like this:
  • Facebook said it received between 9,000 and 10,000 requests for data from all government agencies in the second half of last year. The social media company said fewer than 19,000 users were targeted.
  • Every company involved denied the most sensational assertion in the Prism documents: that the NSA pulled data "directly from the servers" of Microsoft, Yahoo, Google, Facebook, AOL and more. Technology experts and a former government official say that phrasing, taken from a PowerPoint slide describing the program, was likely meant to differentiate Prism's neatly organized, company-provided data from the unstructured information snatched out of the Internet's major pipelines. In slide made public by the newspapers, NSA analysts were encouraged to use data coming from both Prism and from the fiber-optic cables. Prism, as its name suggests, helps narrow and focus the stream. If eavesdroppers spot a suspicious email among the torrent of data pouring into the United States, analysts can use information from Internet companies to pinpoint the user. With Prism, the government gets a user's entire email inbox. Every email, including contacts with American citizens, becomes government property. Once the NSA has an inbox, it can search its huge archives for information about everyone with whom the target communicated. All those people can be investigated, too.
  • What followed was the most significant debate over domestic surveillance since the 1975 Church Committee, a special Senate committee led by Sen. Frank Church, D-Idaho, reined in the CIA and FBI for spying on Americans. Unlike the recent debate over Prism, however, there were no visual aids, no easy-to-follow charts explaining that the government was sweeping up millions of emails and listening to phone calls of people accused of no wrongdoing.
  • A few months after Obama took office in 2009, the surveillance debate reignited in Congress because the NSA had crossed the line. Eavesdroppers, it turned out, had been using their warrantless wiretap authority to intercept far more emails and phone calls of Americans than they were supposed to. Obama, no longer opposed to the wiretapping, made unspecified changes to the process. The government said the problems were fixed.
  • Schneier, the author and security expert, said it doesn't really matter how Prism works, technically. Just assume the government collects everything, he said. He said it doesn't matter what the government and the companies say, either. It's spycraft, after all. "Everyone is playing word games," he said. "No one is telling the truth."
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    Associated Press is now doing its job with a masterful overview of NSA capabilities, discussing how NSA scoops up all "backbone" telecommunications, then uses PRISM to narrow down the specific communications they decide to look at. This one is a "must read" article if you're interested in the NSA scandal. It ties a lot of the pieces together.  
Gary Edwards

David Skeel: A Nation Adrift From the Rule of Law - WSJ.com - 1 views

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    "No one doubts that the coming election will be the most important referendum on the size and nature of government in a generation. But another issue is nearly as important and has gotten far less attention: our crumbling commitment to the rule of law. The notion that we are governed by rules that are transparent and enacted through the legislative process-not by the whims of our leaders-is at the heart of that commitment. If legislators exceed their authority under the Constitution, or if otherwise legitimate laws are misused, courts must step in to prevent or remedy the potential harm. During the 2008 financial crisis, the government repeatedly violated these principles. When regulators bailed out Bear Stearns by engineering its sale to J.P. Morgan Chase, they flagrantly disregarded basic corporate law by "locking up" the transaction so that no other bidder could intervene. When the government bailed out AIG six months later, the Federal Reserve funded the bailout by invoking extraordinary loan powers for what was clearly an acquisition rather than a loan. (The government acquired nearly 80% of AIG's stock.) Two months later, the Treasury Department used money from the $700-billion Troubled Asset Relief Program fund to bail out the car companies. This was dubious. Under the statute, the funds were to be used for financial institutions. But the real violation came a few months later, when the government used a sham bankruptcy sale to transfer Chrysler to Fiat while almost certainly stiffing Chrysler's senior creditors. According to two leading legal scholars, Eric Posner and Adrian Vermeule, rule-of-law violations are inevitable during a crisis. The executive branch takes all necessary steps, even if that means violating the law, until the crisis has passed. The argument is powerful, and its advocates are correct that presidents and other executive-branch officials often push the envelope during a crisis. Yet pushing the envelope isn't the same thing as f
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