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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
Paul Merrell

Let's check James Comey's Bush years record before he becomes FBI director | Laura Murp... - 0 views

  • Comey is lionised in DC for one challenge over liberties. Yet he backed waterboarding, wire-tapping and indefinite detention
  • It had the air of Hollywood. On the night of 10 March 2004, James Comey, the nominee to lead the FBI for the next ten years, rushed to the hospital bedside of his terribly ill boss, Attorney General John Ashcroft.There, he eventually confronted White House Chief of Staff Andrew Card and White House Counsel Alberto Gonzales, who were trying to get the pancreatitis-stricken Ashcroft to renew a still secret and illegal surveillance program on Americans' electronic communications. Neither Ashcroft nor Comey, then acting attorney general because of Ashcroft's condition, would reauthorize the program. When Gonzales authorized the program to go forward without a Justice Department certification, Comey threatened to resign, along with his staff and FBI Director Robert Mueller.The threats worked: President Bush blinked, and Comey won modifications to the secret surveillance program that he felt brought it into compliance with the law. This event, now the stuff of DC legend, has solidified Comey's reputation as a "civil liberties superhero", in the words of CNN's Jake Tapper, and may be one of the reasons President Obama nominated him Friday to be the next director of the FBI.
  • There's one very big problem with describing Comey as some sort of civil libertarian: some facts suggest otherwise. While Comey deserves credit for stopping an illegal spying program in dramatic fashion, he also approved or defended some of the worst abuses of the Bush administration during his time as deputy attorney general. Those included torture, warrantless wiretapping, and indefinite detention.On 30 December 2004, a memo addressed to James Comey was issued that superseded the infamous memo that defined torture as pain "equivalent in intensity to the pain accompanying serious physical injury, such as organ failure". The memo to Comey seemed to renounce torture but did nothing of the sort. The key sentence in the opinion is tucked away in footnote 8. It concludes that the new Comey memo did not change the authorizations of interrogation tactics in any earlier memos.In short, the memo Comey that approved gave a thumbs-up on waterboarding, wall slams, and other forms of torture – all violations of domestic and international law.
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  • Then, there's warrantless wiretapping. Many media reports describe that Comey's defiant stand at Ashcroft's bedside was in opposition to the warrantless wiretapping of Americans international communications. But we simply do not know exactly what Comey opposed, or why or what reforms he believed brought the secret program within the rule of law. We do, however, know that Comey was read into the program in January 2004.While, to his credit, he immediately began raising concerns, the program was still in existence when the New York Times exposed it in December 2005. This was a year and a half after Comey's hospital showdown with Gonzales and Card. In fact, the warrantless wiretapping program was supported by a May 2004 legal opinion (pdf) produced by the Justice Department's Office of Legal Counsel and signed off by Comey, which replaced the 2001 legal opinion Comey had problems with.This, of course, raises the question: just what illegal surveillance program did Comey oppose so much he would resign over it? Last weekend, the Washington Post provided a new theory: the Marina program, which collects internet metadata. Now, the Senate has an opportunity to end the theorizing and find out what exactly Comey objected to. It's a line of questioning that senators should focus doggedly on, in light of the recent revelations in the Post and the Guardian.
  • The final stain on Comey's record was his full-throated defense of the indefinite military detention of an American citizen arrested on American soil. In a June 2004 press conference, Comey told of Jose Padilla, an alleged al-Qaida member accused of plotting to detonate a dirty bomb as well as blow up apartment buildings in an American city. By working for al-Qaida, Padilla, Comey argued, could be deprived of a lawyer and indefinitely detained as an enemy combatant on a military brig off the South Carolina coast for the purpose of extracting intelligence out of him. It turned out that Padilla was never charged with the list of crimes and criminal associations pinned on him by Comey that day. When Padilla was finally convicted – in a federal court – in August 2007, it wasn't for plotting dirty bomb attacks or blowing up apartment buildings. Rather, he was convicted of material support of terrorism overseas. During his indefinite military detention, Padilla was tortured.
  • Everyone has a backstory, and the confirmation process should ensure the American public hears all relevant background information, both good and bad, when Comey appears before the Senate. Senators should insist that Comey explain his role during the Bush era and repudiate policies he endorsed on torture, indefinite detention, and illegal surveillance.The new FBI director will be around for the next decade. We need one who will respect the constitution and the rule of law; not one who will use discredited and illegal activities in the name of justice and safety.
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    Comey's not right for the FBI directorship this time around. The nation needs an FBI Director and Comey's role in government surveillance, torture, warrantless wiretapping, extraordinary rendition, and indefinite detention of a U.S. citizen. That's too much to get sorted out any time soon given the government shroud of secrecy on those topics. 
Gary Edwards

PETER SCHIFF: The Housing Bust Was Just A Preview For The Coming Catastrophe - Business... - 0 views

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    Peter Schiff talks about his new book "The Real Crash: America's Coming Bankruptcy, How to Save Yourself and Your Country".  I caught the Coast-to-Coast "Financial Crisis Special" interview with Peter earlier this week where he spoke on the "Real Crash" issues.  Stunning stuff.  His hour on Coast was followed by Lindsey Williams who pointed out that the New World Order - Illuminati - Bankster trigger point would be signaled by a collapse in the derivatives market. The derivatives market is now over a quadrillion dollars of  casino style gambling.  This is where Banksters make huge bets on things like whether or not interest rates will go up or down.  Then they take out insurance to cover their bets, which further compounds the cost.  Recent events like the Jon Corzine MF Global gamble that the Federal Reserve Bankster Cartel would backstop explosive European sovereign bankster debt are the first indications of collapse in the derivatives market.  We now know that JP Morgan placed similar bets on a European bailout by the Federal Reserve and World Bank, and lost big.  The only difference is that Corzine robbed his clients personal accounts to cover his bets. While Schiff argues the facts on the table, the "what", Lindsay argued the "why"; claiming that this escalating debt mess is all by design.  Lindsay claims that an operational fundamental of the New World Order elites is to first overturn the USA Constitution.  Using a Machiavellian Principle known as, "out of chaos comes order", they seek to de-stabilize and overthrow the USA Constitutional Republic using massive and crushing debt to first destroy the dollar currency.  This will create massive chaos requiring martial law and government seizure of private property and production. Peter Schiff warns that the government is driving us deeper into debt at exactly the time we should be saving and investing those savings in future private sector productivity.  Lindsay argues that this is all by desig
Gary Edwards

Why Bitcoin Matters | Marc Andreessen - 0 views

  • First, Bitcoin at its most fundamental level is a breakthrough in computer science – one that builds on 20 years of research into cryptographic currency, and 40 years of research in cryptography, by thousands of researchers around the world. Bitcoin is the first practical solution to a longstanding problem in computer science called the Byzantine Generals Problem. To quote from the original paper defining the B.G.P.: “[Imagine] a group of generals of the Byzantine army camped with their troops around an enemy city. Communicating only by messenger, the generals must agree upon a common battle plan. However, one or more of them may be traitors who will try to confuse the others. The problem is to find an algorithm to ensure that the loyal generals will reach agreement.” More generally, the B.G.P. poses the question of how to establish trust between otherwise unrelated parties over an untrusted network like the Internet.
  • The practical consequence of solving this problem is that Bitcoin gives us, for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate. What kinds of digital property might be transferred in this way? Think about digital signatures, digital contracts, digital keys (to physical locks, or to online lockers), digital ownership of physical assets such as cars and houses, digital stocks and bonds … and digital money. All these are exchanged through a distributed network of trust that does not require or rely upon a central intermediary like a bank or broker. And all in a way where only the owner of an asset can send it, only the intended recipient can receive it, the asset can only exist in one place at a time, and everyone can validate transactions and ownership of all assets anytime they want.
  • How does this work?
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  • Bitcoin is a digital bearer instrument. It is a way to exchange money or assets between parties with no pre-existing trust: A string of numbers is sent over email or text message in the simplest case. The sender doesn’t need to know or trust the receiver or vice versa. Related, there are no chargebacks – this is the part that is literally like cash – if you have the money or the asset, you can pay with it; if you don’t, you can’t. This is brand new. This has never existed in digital form before. Bitcoin is a digital currency, whose value is based directly on two things: use of the payment system today – volume and velocity of payments running through the ledger – and speculation on future use of the payment system. This is one part that is confusing people. It’s not as much that the Bitcoin currency has some arbitrary value and then people are trading with it; it’s more that people can trade with Bitcoin (anywhere, everywhere, with no fraud and no or very low fees) and as a result it has value.
  • Bitcoin is an Internet-wide distributed ledger. You buy into the ledger by purchasing one of a fixed number of slots, either with cash or by selling a product and service for Bitcoin. You sell out of the ledger by trading your Bitcoin to someone else who wants to buy into the ledger. Anyone in the world can buy into or sell out of the ledger any time they want – with no approval needed, and with no or very low fees. The Bitcoin “coins” themselves are simply slots in the ledger, analogous in some ways to seats on a stock exchange, except much more broadly applicable to real world transactions. The Bitcoin ledger is a new kind of payment system. Anyone in the world can pay anyone else in the world any amount of value of Bitcoin by simply transferring ownership of the corresponding slot in the ledger. Put value in, transfer it, the recipient gets value out, no authorization required, and in many cases, no fees. That last part is enormously important. Bitcoin is the first Internetwide payment system where transactions either happen with no fees or very low fees (down to fractions of pennies). Existing payment systems charge fees of about 2 to 3 percent – and that’s in the developed world. In lots of other places, there either are no modern payment systems or the rates are significantly higher. We’ll come back to that.
  • Why would any merchant – online or in the real world – want to accept Bitcoin as payment, given the currently small number of consumers who want to pay with it? My partner Chris Dixon recently gave this example: “Let’s say you sell electronics online. Profit margins in those businesses are usually under 5 percent, which means conventional 2.5 percent payment fees consume half the margin. That’s money that could be reinvested in the business, passed back to consumers or taxed by the government. Of all of those choices, handing 2.5 percent to banks to move bits around the Internet is the worst possible choice. Another challenge merchants have with payments is accepting international payments. If you are wondering why your favorite product or service isn’t available in your country, the answer is often payments.” In addition, merchants are highly attracted to Bitcoin because it eliminates the risk of credit card fraud. This is the form of fraud that motivates so many criminals to put so much work into stealing personal customer information and credit card numbers. Since Bitcoin is a digital bearer instrument, the receiver of a payment does not get any information from the sender that can be used to steal money from the sender in the future, either by that merchant or by a criminal who steals that information from the merchant.
  • What’s the future of Bitcoin?
  • Bitcoin is a classic network effect, a positive feedback loop. The more people who use Bitcoin, the more valuable Bitcoin is for everyone who uses it, and the higher the incentive for the next user to start using the technology. Bitcoin shares this network effect property with the telephone system, the web, and popular Internet services like eBay and Facebook. In fact, Bitcoin is a four-sided network effect. There are four constituencies that participate in expanding the value of Bitcoin as a consequence of their own self-interested participation. Those constituencies are (1) consumers who pay with Bitcoin, (2) merchants who accept Bitcoin, (3) “miners” who run the computers that process and validate all the transactions and enable the distributed trust network to exist, and (4) developers and entrepreneurs who are building new products and services with and on top of Bitcoin. All four sides of the network effect are playing a valuable part in expanding the value of the overall system, but the fourth is particularly important.
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    WOW! This is the must read article of the year. Great explanation of Bitcoin; what it is, how it works, and why it is so significant. Excellent analysis!
Paul Merrell

Jeremy Hammond Sentenced To 10 Years In Prison - 0 views

  • NEW YORK -- Convicted hacker Jeremy Hammond was sentenced Friday to 10 years in prison for stealing internal emails from the global intelligence firm Stratfor.
  • Hammond, 28, has a lengthy criminal record for his protests both online and off against targets like the 2004 Republican National Convention and pro-Iraq War activists. But stealing Stratfor files as part of the online hacking collective Anonymous gave him a new level of notoriety. In May, he pleaded guilty to one conspiracy charge for hacking the Texas-based private intelligence firm Strategic Forecasting, or Stratfor. The security breach resulted in the theft of employee emails and account information for approximately 860,000 Stratfor subscribers and clients, including information from 60,000 credit cards. Although Hammond did not use the credit cards himself, he urged supporters to use them to make donations to charities. The resulting fraudulent charges led to headaches for nonprofits and for the private individuals who had their phone numbers and email addresses exposed. The government charges originally added up to 30 years in prison, but Hammond took a plea deal for violating the Computer Fraud and Abuse Act, a federal anti-hacking law also used to prosecute internet freedom activist Aaron Swartz. He admitted to hacking several other websites, including the Arizona Department of Public Safety, Special Forces Gear, the Boston Police Patrolmen's Association, and the sheriff's office in Jefferson County, Ala.
  • Nearly 5 million emails obtained in the Stratfor hack were turned over to WikiLeaks by Hammond and published as the “Global Intelligence Files.” They revealed domestic spying on activists, including Occupy Wall Street. The resulting media publicity led some, including 4,000 online petition backers and Pentagon Papers leaker Daniel Ellsberg, to hail him as a whistleblower. But to the federal government, he was little more than a common thief. “While he billed himself as fighting for an anarchist cause, in reality, Jeremy Hammond caused personal and financial chaos for individuals whose identities and money he took and for companies whose businesses he decided he didn’t like," United States Attorney Preet Bharara said in a May statement. On Friday, Hammond, who has been in detention for 20 months, struck back. While apologizing to the innocent people who had their personal information exposed as a result of his leaks, he lashed out at the FBI, and Hector Xavier Monsegur, an informant widely known by his online name "Sabu." For months, Hammond claimed, Sabu guided him as he hacked the Stratfor website and thousands more around the world.
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  • Before being cut off by U.S. District Court Judge Loretta Preska, Hammond claimed that foreign government targets included Turkey, Brazil and Iran. Preska had already imposed a protective order preventing the release of the countries' names, which were in Hammond's statement as well as in sentencing paperwork. The government had disputed his claims involving the countries, and Preska responded by ordering that their names be redacted. She cut Hammond off in court Friday before he was able to list all of the countries in violation of the order.
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    Jeremy Hammond draws the maximum 10-year sentence. 
Gary Edwards

Why Are We So Afraid To Fix Banks The Right Way?* | Clusterstock Henry Blodgett - 0 views

  • a debt-equity swap
  • LIF said: Jan. 19, 3:17 PM MY PLAN 1. Mandate a 12-1 leverage cap for all financial institutions to take effect within 180 days. This 12-1 leverage cap has to be calculated using real market prices, not mark-to-model prices. 2. Temporary ban on capital raising by banks – water can’t dilute poison. You eliminate the poison first then add more water. 3. Force banks, etc to reach this 12-1 leverage cap by selling their toxic assets within 180 days via a US Govt Auction. The US Govt will be the Auctioneer but will NOT bid for assets 4. Any bank that is unable to sell sufficient assets to bring it under the 12-1 leverage cap will automatically nationalized by the US Govt at a price of $1. All shareholdrers and bond holders forfeit their assets. This will provide an incentive to the banks/financial institutions to sell these assets. 5. The US Govt will now hold all the toxic assets to maturity - this will prevent private market bidders from low-bidding in (3) above. Private market bidders in essence are being told, you buy the assets during the auction or you will not have another opportunity to buy the assets, as the US Govt will sieze them at an effective rate of ZERO and then hold them to maturity. 6. Any bank that falls under nationalization will also have its CEO, Board of Directors and members of the Management committee for the past 5-10 years disgorge all compensation earned during the past 5-10 years. 7. Create standardized CDS products that traded on an electronic exchange. All non-standard CDS products should be liquidated in the OTC market or swapped into standardized CDS products prior to the commencement of the new CDS exchange. The exchange will commence within180 days. 8. New Mortgage Financing Rules: 20-30% minimum govt mandated down payments. Strict Debt to Income limits, etc. These rules must be codified into federal law. 9. New Credit Card/Auto Finance rules: strict rules on the amount of credit card/Auto finance debt available to consumers.
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    You don't have to subsidize banks and their stakeholders at taxpayer expense to avoid another Lehman.  You just have to fix the banks the right way. What's the right way? * Temporarily seize the banks * Write their assets down to nuclear-winter levels (or, if desired, put them in a big bad bank, as Sheila Bair wants to do.) * Convert enough of their debt to equity to put them in a strong capital position. That's it.  No taxpayer money.  No citizen outrage.  No comical "Yes, we're lending" assurances when what the banks are really doing is, sensibly, hoarding everything. We could do this to Citigroup and Bank of America tomorrow afternoon, and on Wednesday morning, two of our biggest banks would be rock solid (they could also still be publicly traded, under the same ticker symbols, with different shareholders). 
Gary Edwards

US debt problem visualized: Debt stacked in 100 dollar bills - 1 views

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    From USDebt.Kleptocracy.us.  These visual depictions of our national debt are based on Federal Reserve Bankster Cartel numbers and the USdebtclock.org.  Warning; this will wreck your day.  Our government is spending us into a hole future generations will never dig out of.  And they refuse to stop spending. $114,500,000,000,000. - US unfunded liabilities To the right you can see the pillar of cold hard $100 bills that dwarfs the WTC & Empire State Building - both at one point world's tallest buildings. If you look carefully you can see the Statue of Liberty. The 114.5 Trillion dollar super-skyscraper is the amount of money the U.S. Government knows it does not have to fully fund the Medicare, Medicare Prescription Drug Program, Social Security, Military and civil servant pensions. It is the money USA knows it will not have to pay all its bills. If you live in USA this is also your personal credit card bill; you are responsible along with everyone else to pay this back. The citizens of USA created the U.S. Government to serve them, this is what the U.S. Government has done while serving The People. The unfunded liability is calculated on current tax and funding inputs, and future demographic shifts in US Population. Note: On the above 114.5T image the size of the base of the money pile is half a trillion, not 1T as on 15T image. The height is double. This was done to reflect the base of Empire State and WTC more closely.
Paul Merrell

WikiLeaks Slams Google Capitulation to US Government | News | teleSUR - 0 views

  • WikiLeaks strongly criticized Google at a press conference in Geneva Monday for taking two and a half years to divulge that it had handed over staff emails from the open information journalistic group to the U.S. government. On Dec. 23, 2014, Google finally informed WikiLeaks that it had responded to the U.S. Justice Department's order to give all available digital data of three WikiLeaks members, Sarah Harrison, Kristinn Hrafnsson, and Joseph Farell. The information handed over included emails, draft emails, deleted emails, source and destination addresses of all of the emails, as well as telephone numbers, contact lists, and credit card and bank account numbers. In a press conference, WikiLeaks’ lawyer Baltasar Garzon said that the way that the U.S. government asked for the information is “unacceptable and violates the Fourth Amendment” of the U.S. Constitution. He characterized the U.S. government's request as a “fishing expedition” and a “blanket attack” against WikiLeaks.
  • He also questioned why Google did not contest the request from the Justice Department and pointed out that if Google had challenged the order, then that would have given WikiLeaks the opportunity to fight the U.S. government's invasion of privacy. Garzon said he has written a letter to the executive chairman of Google, Eric Schmidt, demanding to know all of the information that was turned over to the U.S. government. This latest revelation by Google is seen as a part of the criminal investigation against WikiLeaks that was first launched in 2010, following the group’s publication of hundreds of thousands of U.S. secrets, included in documents and cables, that the organization received by U.S. soldier Chelsea Manning. Manning is currently serving 35 years in military prison for leaking the information. Julian Assange, the founder and editor-in-chief of WikiLeaks, said that this is really a story of Google rolling over yet again to help the US government violate the Constitution – by taking over journalists’ private emails in response to give-us-everything warrants.”
Paul Merrell

Obama to propose legislation to protect firms that share cyberthreat data - The Washing... - 0 views

  • President Obama plans to announce legislation Tuesday that would shield companies from lawsuits for sharing computer threat data with the government in an effort to prevent cyber­attacks. On the heels of a destructive attack at Sony Pictures Entertainment and major breaches at JPMorgan Chase and retail chains, Obama is intent on capitalizing on the heightened sense of urgency to improve the security of the nation’s networks, officials said. “He’s been doing everything he can within his executive authority to move the ball on this,” said a senior administration official who spoke on the condition of anonymity to discuss legislation that has not yet been released. “We’ve got to get something in place that allows both industry and government to work more closely together.”
  • The legislation is part of a broader package, to be sent to Capitol Hill on Tuesday, that includes measures to help protect consumers and students against ­cyberattacks and to give law enforcement greater authority to combat cybercrime. The provision’s goal is to “enshrine in law liability protection for the private sector for them to share specific information — cyberthreat indicators — with the government,” the official said. Some analysts questioned the need for such legislation, saying there are adequate measures in place to enable sharing between companies and the government and among companies.
  • “We think the current information-sharing regime is adequate,” said Mark Jaycox, legislative analyst at the Electronic Frontier Foundation, a privacy group. “More companies need to use it, but the idea of broad legal immunity isn’t needed right now.” The administration official disagreed. The lack of such immunity is what prevents many companies from greater sharing of data with the government, the official said. “We have heard that time and time again,” the official said. The proposal, which builds on a 2011 administration bill, grants liability protection to companies that provide indicators of cyberattacks and threats to the Department of Homeland Security.
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  • But in a provision likely to raise concerns from privacy advocates, the administration wants to require DHS to share that information “in as near real time as possible” with other government agencies that have a cybersecurity mission, the official said. Those include the National Security Agency, the Pentagon’s ­Cyber Command, the FBI and the Secret Service. “DHS needs to take an active lead role in ensuring that unnecessary personal information is not shared with intelligence authorities,” Jaycox said. The debates over government surveillance prompted by disclosures from former NSA contractor Edward Snowden have shown that “the agencies already have a tremendous amount of unnecessary information,” he said.
  • The administration official stressed that the legislation will require companies to remove unnecessary personal information before furnishing it to the government in order to qualify for liability protection. It also will impose limits on the use of the data for cybersecurity crimes and instances in which there is a threat of death or bodily harm, such as kidnapping, the official said. And it will require DHS and the attorney general to develop guidelines for the federal government’s use and retention of the data. It will not authorize a company to take offensive cyber-measures to defend itself, such as “hacking back” into a server or computer outside its own network to track a breach. The bill also will provide liability protection to companies that share data with private-sector-developed organizations set up specifically for that purpose. Called information sharing and analysis organizations, these groups often are set up by particular industries, such as banking, to facilitate the exchange of data and best practices.
  • Efforts to pass information-sharing legislation have stalled in the past five years, blocked primarily by privacy concerns. The package also contains provisions that would allow prosecution for the sale of botnets or access to armies of compromised computers that can be used to spread malware, would criminalize the overseas sale of stolen U.S. credit card and bank account numbers, would expand federal law enforcement authority to deter the sale of spyware used to stalk people or commit identity theft, and would give courts the authority to shut down botnets being used for criminal activity, such as denial-of-service attacks.
  • It would reaffirm that federal racketeering law applies to cybercrimes and amends the Computer Fraud and Abuse Act by ensuring that “insignificant conduct” does not fall within the scope of the statute. A third element of the package is legislation Obama proposed Monday to help protect consumers and students against cyberattacks. The theft of personal financial information “is a direct threat to the economic security of American families, and we’ve got to stop it,” Obama said. The plan, unveiled in a speech at the Federal Trade Commission, would require companies to notify customers within 30 days after the theft of personal information is discovered. Right now, data breaches are handled under a patchwork of state laws that the president said are confusing and costly to enforce. Obama’s plan would streamline those into one clear federal standard and bolster requirements for companies to notify customers. Obama is proposing closing loopholes to make it easier to track down cybercriminals overseas who steal and sell identities. “The more we do to protect consumer information and privacy, the harder it is for hackers to damage our businesses and hurt our economy,” he said.
  • In October, Obama signed an order to protect consumers from identity theft by strengthening security features in credit cards and the terminals that process them. Marc Rotenberg, executive director of the Electronic Privacy Information Center, said there is concern that a federal standard would “preempt stronger state laws” about how and when companies have to notify consumers. The Student Digital Privacy Act would ensure that data entered would be used only for educational purposes. It would prohibit companies from selling student data to third-party companies for purposes other than education. Obama also plans to introduce a Consumer Privacy Bill of Rights. And the White House will host a summit on cybersecurity and consumer protection on Feb. 13 at Stanford University.
Gary Edwards

Reinventing Banking: From Russia to Iceland to Ecuador - 1 views

  • Global developments in finance and geopolitics are prompting a rethinking of the structure of banking and of the nature of money itself. Among other interesting news items: * In Russia, vulnerability to Western sanctions has led to proposals for a banking system that is not only independent of the West but is based on different design principles. * In Iceland, the booms and busts culminating in the banking crisis of 2008-09 have prompted lawmakers to consider a plan to remove the power to create money from private banks. * In Ireland, Iceland and the UK, a recession-induced shortage of local credit has prompted proposals for a system of public interest banks on the model of the Sparkassen of Germany. * In Ecuador, the central bank is responding to a shortage of US dollars (the official Ecuadorian currency) by issuing digital dollars through accounts to which everyone has access, effectively making it a bank of the people.
  • A major concern with stripping private banks of the power to create money as deposits when they make loans is that it will seriously reduce the availability of credit in an already sluggish economy. One solution is to make the banks, or some of them, public institutions. They would still be creating money when they made loans, but it would be as agents of the government; and the profits would be available for public use, on the model of the US Bank of North Dakota and the German Sparkassen (public savings banks). In Ireland, three political parties – Sinn Fein, the Green Party and Renua Ireland (a new party) — are now supporting initiatives for a network of local publicly-owned banks on the Sparkassen model. In the UK, the New Economy Foundation (NEF) is proposing that the failed Royal Bank of Scotland be transformed into a network of public interest banks on that model. And in Iceland, public banking is part of the platform of a new political party called the Dawn Party.
  • Particularly interesting is a proposal to provide targeted lending for businesses and industries by providing them with low-interest loans at 1-4 percent, financed through the central bank with quantitative easing (digital money creation). The proposal is to issue 20 trillion rubles for this purpose over a five year period. Using quantitative easing for economic development mirrors the proposal of UK Labour Leader Jeremy Corbin for “quantitative easing for people.”
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  • William Engdahl concludes that Russia is in “a fascinating process of rethinking every aspect of her national economic survival because of the reality of the western attacks,” one that “could produce a very healthy transformation away from the deadly defects” of the current banking model.
  • Iceland’s Radical Money Plan Iceland, too, is looking at a radical transformation of its money system, after suffering the crushing boom/bust cycle of the private banking model that bankrupted its largest banks in 2008. According to a March 2015 article in the UK Telegraph: Iceland’s government is considering a revolutionary monetary proposal – removing the power of commercial banks to create money and handing it to the central bank. The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled “A better monetary system for Iceland”.
  • Under this “Sovereign Money” proposal, the country’s central bank would become the only creator of money. Banks would continue to manage accounts and payments and would serve as intermediaries between savers and lenders. The proposal is a variant of the Chicago Plan promoted by Kumhof and Benes of the IMF and the Positive Money group in the UK.
  • Ever since 2000, when Ecuador agreed to use the US dollar as its official legal tender, it has had to ship boatloads of paper dollars into the country just to conduct trade. In order to “seek efficiency in payment systems [and] to promote and contribute to the economic stability of the country,” the government of President Rafael Correa has therefore established the world’s first national digitally-issued currency.
  • Unlike Bitcoin and similar private crypto-currencies (which have been outlawed in the country), Ecuador’s dinero electronico is operated and backed by the government. The Ecuadorian digital currency is less like Bitcoin than like M-Pesa, a private mobile phone-based money transfer service started by Vodafone, which has generated a “mobile money” revolution in Kenya.
  • According to a National Assembly statement: Electronic money will stimulate the economy; it will be possible to attract more Ecuadorian citizens, especially those who do not have checking or savings accounts and credit cards alone. The electronic currency will be backed by the assets of the Central Bank of Ecuador.
  • That means there is no fear of the bank going bankrupt or of bank runs or bail-ins. Nor can the digital currency be devalued by speculative short selling. The government has declared that these are digital US dollars trading at 1 to 1 – take it or leave it – and the people are taking it. According to an October 2015 article titled “
  • Banking Moves into the 21st Century The catastrophic failures of the Western banking system mandate a new vision. These transformations, current and proposed, are constructive steps toward streamlining the banking system, eliminating the risks that have devastated individuals and governments, democratizing money, and promoting sustainable and prosperous economies.
  •  
    Excellent article on banking, lending, and currency reform initiatives.  Thanks to Marbux!
Paul Merrell

FBI has your TorMail mailbox - More prosecutions to follow | TechEye - 0 views

  • The FBI has seized the entire email database of a popular anonymous webmail service called TorMail meaning that all those secret mails now can be read by the US government. The database was taken while investigating a hosting company known for sheltering child porn last year and now the FBI claims that it has uncovered a vast trove of email which can be used in unrelated investigations. Taken from Freedom Hosting, the database surfaced in court papers last week when prosecutors indicted a Florida man for allegedly selling counterfeit credit cards online. The untouchables built a case in part by executing a search warrant on a Gmail account used by the counterfeiters, where they found that orders for forged cards were being sent to a TorMail e-mail account: "platplus@tormail.net." They then obtained a search warrant for the TorMail account, and then accessed it from the bureau's own copy of "data and information from the TorMail email server, including the content of TorMail email accounts." In othe rwords, the FBI is gathering information into a virtual lock box, and leaving it there until it can obtain specific authority to tap it later. So far it is not searching the trove for incriminating evidence before getting a warrant. But now it has a copy of the TorMail's servers, the bureau can execute endless search warrants.
Paul Merrell

Russia ready to switch off Visa & Mastercard ahead of tougher US sanctions - RT Busines... - 2 views

  • Moscow faces prospects of harsher sanctions this coming January as the US Congress is set to discuss a new package of anti-Russian penalties. The Russian central bank has warned the country’s lenders over potential risks. The regulator has recommended that Russian financial institutions take the necessary preventive steps in case their partner-banks are forced to stop providing connection to services by the world’s two most used payment systems – Visa and Mastercard, reports Russian business daily Vedomosti.
  • The Central Bank of Russia advises that Russian banks should look for an alternative sponsor that will be able substitute a current provider of Visa and MasterCard services, seal a maintenance service contract and test an opportunity of integrating.
  • In response to sanctions Russia has developed its own national payment system. The Mir payment system was introduced in 2015 after clients of several Russian banks were temporarily unable to use Visa and Mastercard due to US sanctions. Customers found bank issued credit cards linked to Visa and Mastercard systems no longer worked. The country issued 37 million Mir cards as of June 2018.
Paul Merrell

CorpWatch : "Alchemy" Investigation Alleges Wall Street Fraud at Standard & P... - 0 views

  • On Monday, the U.S. Department of Justice sued S&P for $5 billion for misleading the Western Federal Corporate Credit Union, the first federally chartered credit union, which collapsed in 2008.  Sixteen states have joined the lawsuit while the U.S. Securities & Exchange Commission has also launched an investigation. S&P has offered to settle for $100 million instead without admitting any guilt.The lawsuits are based on a special government investigation named “Alchemy” into top ratings provided by S&P for “collateralized debt obligations” (CDOs) composed of sub-prime mortgages. The federal officials allege that analysts knew that the loans were likely to go sour.
  • Two dozen government lawyers spent several years, conducting over 150 interviews, to find out how much the ratings agency knew about the quality of the CDOs. Some of the documents they uncovered were pretty damning.“This market is a wildly spinning top which is going to end badly,” wrote David Tesher, an S&P managing director in an email on December 11, 2006, according to documents released by the government. “Let’s hope we are all wealthy and retired by the time this house of cards falters,” another S&P employee wrote four days later, according to documents released by the U.S. Senate."Watch out // Housing market went softer // Cooling down // Strong market is now much weaker // Subprime is boi-ling o-ver // Bringing down the house,” sang an analyst in a parody video of Talking Heads' 1983 song "Burning Down the House" that he recorded for his colleagues in March 2007.
  • “Claims that we deliberately kept ratings high when we knew they should be lower are simply not true. S.&P. has always been committed to serving the interests of investors and all market participants by providing independent opinions on creditworthiness based on available information,” the Wall Street firm said in a statement released to the press.S&P has also tried to claim in court that its ratings are protected under the first amendment to the U.S. constitution, which guarantees the right to free speech. Federal judges have been skeptical like Shira A. Scheindlin, who recently ruled against the argument.
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  • Other lawsuits have also uncovered evidence that Wall Street firms were aware of the problems with sub-prime loans as far back as 2005, according to documents just released in a New York court under a lawsuit against Morgan Stanley, a major U.S. investment bank, that was brought by the China Development Industrial Bank (CDIB) from Taiwan.  The bankers cracked jokes about the quality of the CDO that they sold to the Taiwanese suggesting that it should be called “Subprime Meltdown,” “Hitman,” “Nuclear Holocaust” and “Mike Tyson’s Punchout” or “Shitbag.”
  •  
    From February 2013.
Paul Merrell

Wells Fargo charged with opening accounts without customers' permission - May. 5, 2015 - 0 views

  • Wells Fargo is accused of opening up accounts and credit cards in customers' names without their authorization. The accounts are being opened by Wells Fargo employees under pressure to meet unrealistic sales goals and quotas, according to the civil complaint filed by the Los Angeles City Attorney.
  • The complaint charges that bank employees opened new accounts for existing customers without their authorization, in order to meet sales quotas. The employees also allegedly transferred money from customers' authorized accounts to pay fees on the unauthorized accounts. When fees on unauthorized accounts went unpaid, some customers were placed into collection. Others had negative information placed on their credit reports as a result. The complaint, filed in California Superior Court on Monday, seeks a $2,500 fine for every unauthorized account, and seeks to have all of the money taken from customers returned. It did not estimate how much those penalties could cost the bank. Wells Fargo said it would "vigorously defend" itself from the suit. But the statement it issued did not deny or even address whether its employees opened unauthorized accounts as charged.
Paul Merrell

Asia Times Online :: Russia, China mock divide and rule - 0 views

  • At the symposium, held in a divinely frescoed former 15th century Dominican refectory now part of the Italian parliament's library, Sergey Glazyev, on the phone from Moscow, gave a stark reading of Cold War 2.0. There's no real "government" in Kiev; the US ambassador is in charge. An anti-Russia doctrine has been hatched in Washington to foment war in Europe - and European politicians are its collaborators. Washington wants a war in Europe because it is losing the competition with China. Glazyev addressed the sanctions dementia: Russia is trying simultaneously to reorganize the politics of the International Monetary Fund, fight capital flight and minimize the effect of banks closing credit lines for many businessmen. Yet the end result of sanctions, he says, is that Europe will be the ultimate losers economically; bureaucracy in Europe has lost economic focus as American geopoliticians have taken over.
  • What he did emphasize was this was outright financial war, helped by a fifth column in the Russian establishment. The only equal component in this asymmetrical war was nuclear forces. And yet Russia would not surrender. Leontyev characterized Europe not as a historical subject but as an object: "The European project is an American project." And "democracy" had become fiction. The run on the rouble came and went like a devastating economic hurricane. Yet you don't threat a checkmate against a skilled chess player unless your firepower is stronger than Jupiter's lightning bolt. Moscow survived. Gazprom heeded the request of President Vladimir Putin and will sell its US dollar reserves on the domestic market. German Foreign Minister Frank-Walter Steinmeier went on the record against the EU further "turning the screw" as in more counterproductive sanctions against Moscow. And at his annual press conference, Putin emphasized how Russia would weather the storm.
  • Essentially, the Empire of Chaos is bluffing, using Europe as pawns. The Empire of Chaos is as lousy at chess as it is at history. What it excels in is in upping the ante to force Russia to back down. Russia won't back down.
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  • Russia could outmaneuver Western financial markets by cutting them off from its wealth of oil and natural gas. The markets would inevitably collapse - uncontrolled chaos for the Empire of Chaos (or "controlled chaos", in Putin's own words). Imagine the crumbling of the quadrillion-plus of derivatives. It would take years for the "West" to replace Russian oil and natural gas, but the EU's economy would be instantly devastated. Just this lightning-bolt Western attack on the rouble - and oil prices - using the crushing power of Wall Street firms had already shaken European banks exposed to Russia to the core; their credit default swaps soared. Imagine those banks collapsing in a Lehman Brothers-style house of cards if Russia decided to default - thus unleashing a chain reaction. Think about a non-nuclear MAD (Mutually Assured Destruction) - in fact warless. Still, Russia is self-sufficient in all kinds of energy, mineral wealth and agriculture. Europe isn't. This could become the lethal result of war by sanctions.
  • Russia could always deploy an economic "nuclear" option, declaring a moratorium on its foreign debt. Then, if Western banks seized Russian assets, Moscow could seize every Western investment in Russia. In any event, the Pentagon and NATO's aim of a shooting war in the European theater would not happen; unless Washington was foolish enough to start it.
  • To top it off, in 2014 President Xi Jinping has deployed unprecedented diplomatic/geostrategic frenzy - ultimately tied to the long-term project of slowly but surely keeping on erasing US supremacy in Asia and rearranging the global chessboard. What Xi said in Shanghai in May encapsulates the project; "It's time for Asians to manage the affairs of Asia." At the APEC meeting in November, he doubled down, promoting an "Asia-Pacific dream". Meanwhile, frenzy is the norm. Apart from the two monster, US$725 billion gas deals - Power of Siberia and Altai pipeline - and a recent New Silk Road-related offensive in Eastern Europe, [4] virtually no one in the West remembers that in September Chinese Prime Minister Li Keiqiang signed no fewer than 38 trade deals with the Russians, including a swap deal and a fiscal deal, which imply total economic interplay.
  • A case can be made that the geopolitical shift towards Russia-China integration is arguably the greatest strategic maneuver of the last 100 years. Xi's ultimate master plan is unambiguous: a Russia-China-Germany trade/commerce alliance. German business/industry wants it badly, although German politicians still haven't got the message. Xi - and Putin - are building a new economic reality on the Eurasian ground, crammed with crucial political, economic and strategic ramifications. Of course, this will be an extremely rocky road. It has not leaked to Western corporate media yet, but independent-minded academics in Europe (yes, they do exist, almost like a secret society) are increasingly alarmed there is no alternative model to the chaotic, entropic hardcore neoliberalism/casino capitalism racket promoted by the Masters of the Universe.
  • And yet, as much as Lao Tzu, already an octogenarian, gave the young Confucius an intellectual slap on the face, the "West" could do with a wake-up call. Divide et impera? It's not working. And it's bound to fail miserably. As it stands, what we do know is that 2015 will be a hair-raising year in myriad aspects. Because from Europe to Asia, from the ruins of the Roman empire to the re-emerging Middle Kingdom, we all still remain under the sign of a fearful, dangerous, rampantly irrational Empire of Chaos.
Paul Merrell

Wells Fargo in Hot Water with US Regulators & Fed After Lawsuit - nsnbc international |... - 0 views

  • Wells Fargo is facing a probe by the Officer of the Comptroller of the Currency (OCC) and the San Francisco Federal Reserve Bank (SFFR) into their allegedly unethical business practices.
  • Back in May Wells Fargo was sued by employees (current and former) and customers all across the nation for setting up “unwanted accounts, unwarranted fees”. This lawsuit “contends the largest California-based bank violated state and federal laws by misusing confidential information and failing to notify customers when personal information was breached.” Using “aggressive tactics” to coerce new customers, WF made it “difficult to correct the mistakes” made by WF and return fees to customers because of “high-pressure sales culture set unrealistic quotas, spurring employees to engage in fraudulent conduct to keep their jobs and boost the company’s profits.” Los Angeles City Attorney Mike Feuer said: “In its push for growth, Wells Fargo often elevated its profits over the legal rights of its customers.”
  • For 2 years, Feuer has been investigating how WF “staffers, fearing disciplinary action from managers, begged friends and family members to open ghost accounts” and forged signatures “and falsified phone numbers” of customers who did not want to open an account. This practice drove WF success with an estimated “26% of the company’s revenue was from fee income, including those from credit and debit card accounts, trusts and investments.” WF not only stole money from customers but “also damage their credit scores” and put some into collections to garner fees “for unauthorized accounts went unpaid”. According to the 19-page complaint, WF would “sandbag” their customers; meaning “failing to open accounts when requested by customers, and instead accumulating a number of account applications to be opened at a later date.” Another devious tactic WF employed was “bundling” or “incorrectly informing customers that certain products are available only in packages with other products such as additional accounts, insurance, annuities, and retirement plans.”
Paul Merrell

The Empire's Next Effort to Extract Your Wealth | Laissez-Faire Bookstore - 0 views

  • Since before the tech bust, we’ve been suggesting that while Americans “think” they’re getting richer… they’re actually heading in the other direction. They’re getting poorer.
  • This proposition has been easier for folks to entertain since housing busted and the financial crisis reversed the “wealth effect” in 2008. With that in mind, let’s take a look at the logic of the American Empire and what you can expect in the year(s) ahead. “Great empires, such as the Roman and British, were extractive,” economist Paul Craig Roberts observed recently. “The empires succeeded because the value of the resources and wealth extracted from conquered lands exceeded the value of conquest and governance.” We explored a similar theme in our 2006 book, Empire of Debt. But unlike empires of the past, the American Empire has a logic all its own. “America’s wars are very expensive,” says Roberts, stating the obvious. “Bush and Obama have doubled the national debt, and the American people have no benefits from it. No riches, no bread and circuses flow to Americans from Washington’s wars.”
  • Again Roberts: “Washington’s empire extracts resources from the American people for the benefit of the few powerful interest groups that rule America. The military-security complex, Wall Street, agribusiness and the Israel lobby use the government to extract resources from Americans to serve their profits and power. The U.S. Constitution has been extracted in the interests of the Security State, and Americans’ incomes have been redirected to the pockets of the 1%. “That is how the American Empire functions,” concludes Roberts. We agree. To grow, the American Empire is always looking to inflate the next bubble. These serial bubbles each have the effect of “extracting” wealth from the citizens — in the form of bigger mortgages, heftier credit card statements and stuffed stock portfolios. The “extracted” money is, over time, passed from the wallets of citizens to the pockets of the well connected.
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  • It’s Jackowski’s final mention of extraction — the student debt fiasco — that worries us. This bubble that has already taken flight. Now it’s flying dangerously close to a few pins. Just like with housing, this is one hell of a bubble. And when it bursts, it’ll invite another crew of crony capitalists to the Beltway, who will soon be lining up for bailouts. I urge you to grip your wallet with both hands and prepare for the worse.
Paul Merrell

http://www.informationclearinghouse.info/article35198.htm - 0 views

  • According to a new report in The Wall Street Journal, the scope of the NSA phone monitoring includes customers of all three major phone networks—Verizon, AT&T and Sprint—as well as records from Internet service providers and purchase information from credit card providers.
  • GLENN GREENWALD: Right. Well, first of all, after our story was published, and The Washington Post published more or less simultaneously a similar story, several news outlets, including NBC News, confirmed with government officials that they in fact have exactly the access to the data that we describe. The director of national intelligence confirmed to The New York Times, by name, that the program we identify and the capabilities that we described actually exist. So, you have a situation where somebody seems to be lying. The NSA claims that these companies voluntarily allow them the access; the companies say that they never did.
  • on Thursday, Senate Intelligence Committee Chair Dianne Feinstein told reporters in the Senate gallery that the government’s top-secret court order to obtain phone records on millions of Americans is, quote, "lawful." SEN. DIANNE FEINSTEIN: As far as I know, this is the exact three-month renewal of what has been the case for the past seven years. This renewal is carried out by the FISA court under the business records section of the PATRIOT Act, therefore it is lawful.
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  • On Thursday, Glenn, Director of National Intelligence James Clapper said he stood by what he told Democratic Senator Ron Wyden of Oregon in March, when he said that the National Security Agency does "not wittingly" collect data on millions of Americans. Let’s go to that exchange. SEN. RON WYDEN: Does the NSA collect any type of data at all on millions or hundreds of millions of Americans? JAMES CLAPPER: No, sir. SEN. RON WYDEN: It does not? JAMES CLAPPER: Not wittingly. There are cases where they could inadvertently, perhaps, collect, but not wittingly.
  • AMY GOODMAN: That’s the questioning of the head of the national intelligence, James Clapper, by Democratic Senator Ron Wyden. Glenn Greenwald? GLENN GREENWALD: OK. So, we know that to be a lie, not a misleading statement, not something that was sort of parsed in a way that really was a little bit deceitful, but an outright lie. They collect—they collect data and records about the communications activities and other behavioral activities of millions of Americans all the time. That’s what that program is that we exposed on Wednesday. They go to the FISA court every three months, and they get an order compelling telephone companies to turn over the records, that he just denied they collect, with regard to the conversations of every single American who uses these companies to communicate with one another. The same is true for what they’re doing on the Internet with the PRISM program. The same is true for what the NSA does in all sorts of ways. We are going to do a story, coming up very shortly, about the scope of the NSA’s spying activities domestically, and I think it’s going to shock a lot of people, because the NSA likes to portray itself as interested only in foreign intelligence gathering and only in targeting people who they believe are guilty of terrorism, and yet the opposite is true. It is a massive surveillance state of exactly the kind that the Church Committee warned was being constructed 35 years ago. And we intend to make all those facts available so people can see just how vast it is and how false those kind of statements are.
Paul Merrell

Wyden, Udall Statement on the Disclosure of Bulk Email Records Collection Program | Pre... - 0 views

  • U. S. Senators Ron Wyden (D-Ore.) and Mark Udall (D-Colo.), both members of the Senate Intelligence Committee, released the following statement regarding the recent disclosure by intelligence officials that the NSA operated a bulk email records collection program under the authority of the Patriot Act until 2011.  This program is distinct from the internet-related collection carried out under section 702 of the FISA Amendments Act (which involves the PRISM computer system).   “We are quite familiar with the bulk email records collection program that operated under the USA Patriot Act and has now been confirmed by senior intelligence officials.  We were very concerned about this program’s impact on Americans’ civil liberties and privacy rights, and we spent a significant portion of 2011 pressing intelligence officials to provide evidence of its effectiveness.  They were unable to do so, and the program was shut down that year.  
  • “As we have noted, the Patriot Act’s surveillance authorities are not limited to phone records.  In fact, section 215 of the Patriot Act can be used to collect any type of records whatsoever.  The fact that Patriot Act authorities were used for the bulk collection of email records as well as phone records underscores our concern that this authority could be used to collect other types of records in bulk as well, including information on credit card purchases, medical records, library records, firearm sales records, financial information and a range of other sensitive subjects.  These other types of collection could clearly have a significant impact on Americans’ constitutional rights.   “Intelligence officials have noted that the bulk email records program was discussed with both Congress and the Foreign Intelligence Surveillance Court.  In our judgment it is also important to note that intelligence agencies made statements to both Congress and the Court that significantly exaggerated this program’s effectiveness.  This experience demonstrates to us that intelligence agencies’ assessments of the usefulness of particular collection programs – even significant ones – are not always accurate.  This experience has also led us to be skeptical of claims about the value of the bulk phone records collection program in particular.  
  • “We believe that the broader lesson here is that even though intelligence officials may be well-intentioned, assertions from intelligence agencies about the value and effectiveness of particular programs should not simply be accepted at face value by policymakers or oversight bodies any more than statements about the usefulness of other government programs should be taken at face value when they are made by other government officials.  It is up to Congress, the courts and the public to ask the tough questions and press even experienced intelligence officials to back their assertions up with actual evidence, rather than simply deferring to these officials’ conclusions without challenging them.   “We look forward to continuing the debate about the effectiveness of the ongoing Patriot Act phone records collection program in the days and weeks ahead.”
Paul Merrell

Information Awareness Office - Wikipedia, the free encyclopedia - 0 views

  • The Information Awareness Office (IAO) was established by the Defense Advanced Research Projects Agency (DARPA) in January 2002 to bring together several DARPA projects focused on applying surveillance and information technology to track and monitor terrorists and other asymmetric threats to U.S. national security, by achieving Total Information Awareness (TIA). This would be achieved by creating enormous computer databases to gather and store the personal information of everyone in the United States, including personal e-mails, social networks, credit card records, phone calls, medical records, and numerous other sources, without any requirement for a search warrant.[1] This information would then be analyzed to look for suspicious activities, connections between individuals, and "threats".[2] Additionally, the program included funding for biometric surveillance technologies that could identify and track individuals using surveillance cameras, and other methods.[2] Following public criticism that the development and deployment of this technology could potentially lead to a mass surveillance system, the IAO was defunded by Congress in 2003. However, several IAO projects continued to be funded, and merely run under different names.[3][4][5][6]
  • The IAO was established after Admiral John Poindexter, former United States National Security Advisor to President Ronald Reagan, and SAIC executive Brian Hicks approached the US Department of Defense with the idea for an information awareness program after the attacks of September 11, 2001.[5] Poindexter and Hicks had previously worked together on intelligence-technology programs for the Defense Advanced Research Projects Agency. DARPA agreed to host the program and appointed Poindexter to run it in 2002. The IAO began funding research and development of the Total Information Awareness (TIA) Program in February 2003 but renamed the program the Terrorism Information Awareness Program in May that year after an adverse media reaction to the program's implications for public surveillance. Although TIA was only one of several IAO projects, many critics and news reports conflated TIA with other related research projects of the IAO, with the result that TIA came in popular usage to stand for an entire subset of IAO programs. The TIA program itself was the "systems-level" program of the IAO that intended to integrate information technologies into a prototype system to provide tools to better detect, classify, and identify potential foreign terrorists with the goal to increase the probability that authorized agencies of the United States could preempt adverse actions. As a systems-level program of programs, TIA's goal was the creation of a "counterterrorism information architecture" that integrated technologies from other IAO programs (and elsewhere, as appropriate). The TIA program was researching, developing, and integrating technologies to virtually aggregate data, to follow subject-oriented link analysis, to develop descriptive and predictive models through data mining or human hypothesis, and to apply such models to additional datasets to identify terrorists and terrorist groups.
  • Among the other IAO programs that were intended to provide TIA with component data aggregation and automated analysis technologies were the Genisys, Genisys Privacy Protection, Evidence Extraction and Link Discovery, and Scalable Social Network Analysis programs. On August 2, 2002, Dr. Poindexter gave a speech at DARPAtech 2002 entitled "Overview of the Information Awareness Office"[7] in which he described the TIA program. In addition to the program itself, the involvement of Poindexter as director of the IAO also raised concerns among some, since he had been earlier convicted of lying to Congress and altering and destroying documents pertaining to the Iran-Contra Affair, although those convictions were later overturned on the grounds that the testimony used against him was protected.
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  • On January 16, 2003, Senator Russ Feingold introduced legislation to suspend the activity of the IAO and the Total Information Awareness program pending a Congressional review of privacy issues involved.[8] A similar measure introduced by Senator Ron Wyden would have prohibited the IAO from operating within the United States unless specifically authorized to do so by Congress, and would have shut the IAO down entirely 60 days after passage unless either the Pentagon prepared a report to Congress assessing the impact of IAO activities on individual privacy and civil liberties or the President certified the program's research as vital to national security interests. In February 2003, Congress passed legislation suspending activities of the IAO pending a Congressional report of the office's activities (Consolidated Appropriations Resolution, 2003, No.108–7, Division M, §111(b) [signed Feb. 20, 2003]). In response to this legislation, DARPA provided Congress on May 20, 2003 with a report on its activities.[9] In this report, IAO changed the name of the program to the Terrorism Information Awareness Program and emphasized that the program was not designed to compile dossiers on US citizens, but rather to research and develop the tools that would allow authorized agencies to gather information on terrorist networks. Despite the name change and these assurances, the critics continued to see the system as prone to potential misuse or abuse. As a result House and Senate negotiators moved to prohibit further funding for the TIA program by adding provisions to the Department of Defense Appropriations Act, 2004[10] (signed into law by President Bush on October 1, 2003). Further, the Joint Explanatory Statement included in the conference committee report specifically directed that the IAO as program manager for TIA be terminated immediately.[11]
  •  
    What became today's NSA programs of public concern were the brain child of Admiral John Poindexter and a private sector compadre. U.S. v. Poindexter, 951 F.2d 369, 390 (D.C. Cir. 1991). Poindexter had previously been convicted on five criminal counts involving lying to Congress and destruction and alteration of evidence.  His convictions were overturned on appeal on grounds that some of the testimony against him had been immunized from use in prosecution by Congress. There was no claim on appeal that any such evidence had been false.  86 U.S. v. Poindexter, 951 F.2d 369, 390 (D.C. Cir. 1991), . For far more detail of the evidence against Poindexter, see the August 4, 1993 final report by independent prosecutor Lawrence Walsh, Vol 1, Part 4 section 3, .  So one might say that today's controversial NSA activities were the idea of and conceived by a government official more than willing to lie to Congress and  to destroy and alter evidence. 
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