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American Greed: Trump's Economic Team Is A Who's Who Of What's Wrong - 0 views

  • Hedge funds are represented. So is fracking. And tobacco. And guns. And banking. And steel. And there’s the guy who mismanaged Chrysler before it was rescued by a government intervention.
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    A who's who piece on the Trump economic team. Mad Max: Fury Road as a presidential platform?
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The End Of The Obama World Order - 0 views

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    "For the past eight years, Barack Obama has been using the power of the U.S. presidency to impose his vision of a progressive world order on the entire globe.  As a result, much of the planet will greatly celebrate once the Obama era officially ends on Friday.  The Obama years brought us the Arab Spring, Benghazi, ISIS, civil war in Syria, civil war in Ukraine and the Iran nuclear deal.  On the home front, we have had to deal with Obamacare, "Fast and Furious", IRS targeting of conservative groups, Solyndra, the VA scandal, NSA spying and the worst "economic recovery" since the end of World War II.  And right at the end of his presidency, Barack Obama has committed the greatest betrayal of Israel in U.S. history and has brought us dangerously close to war with Russia. So is the end of the Obama world order worth celebrating? You better believe it is. Of course Obama and his minions are in a great deal of distress that much of their hard work over the past eight years is about to be undone by Donald Trump.  On Wednesday, Vice President Joe Biden warned the elitists gathered at the World Economic Forum in Davos that their "liberal world order" is in danger of collapsing…     Vice President Joe Biden delivered an epic final speech Wednesday to the elites at the World Economic Forum in Davos, Switzerland.   The gist of his speech was simple: At a time of "uncertainty" we must double down on the values that made Western democracies great, and not allow the "liberal world order" to be torn apart by destructive forces. And without a doubt, we definitely want it to collapse. During his time in the White House, Barack Obama has used the full diplomatic power of the government to promote "abortion rights", "gay rights" and other "liberal values" to the farthest corners of the globe.  Here at home, the appointment of two new Supreme Court justices under Obama paved the way for the Supreme Court decision that forced all 50 state
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N.S.A. Spied on Allies, Aid Groups and Businesses - NYTimes.com - 0 views

  • Secret documents reveal more than 1,000 targets of American and British surveillance in recent years, including the office of an Israeli prime minister, heads of international aid organizations, foreign energy companies and a European Union official involved in antitrust battles with American technology businesses.
  • While the names of some political and diplomatic leaders have previously emerged as targets, the newly disclosed intelligence documents provide a much fuller portrait of the spies’ sweeping interests in more than 60 countries. Britain’s Government Communications Headquarters, working closely with the National Security Agency, monitored the communications of senior European Union officials, foreign leaders including African heads of state and sometimes their family members, directors of United Nations and other relief programs, and officials overseeing oil and finance ministries, according to the documents. In addition to Israel, some targets involved close allies like France and Germany, where tensions have already erupted over recent revelations about spying by the N.S.A.
  • Details of the surveillance are described in documents from the N.S.A. and Britain’s eavesdropping agency, known as GCHQ, dating from 2008 to 2011. The target lists appear in a set of GCHQ reports that sometimes identify which agency requested the surveillance, but more often do not. The documents were leaked by the former N.S.A. contractor Edward J. Snowden and shared by The New York Times, The Guardian and Der Spiegel. The reports are spare, technical bulletins produced as the spies, typically working out of British intelligence sites, systematically tapped one international communications link after another, focusing especially on satellite transmissions. The value of each link is gauged, in part, by the number of surveillance targets found to be using it for emails, text messages or phone calls. More than 1,000 targets, which also include people suspected of being terrorists or militants, are in the reports. It is unclear what the eavesdroppers gleaned. The documents include a few fragmentary transcripts of conversations and messages, but otherwise contain only hints that further information was available elsewhere, possibly in a larger database.
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  • Ms. Hansen, the spokeswoman for the European Commission, said that it was already engaged in talks with the United States that were “needed to restore trust and confidence in the trans-Atlantic relationship.” She added that “the commission will raise these new allegations with U.S. and U.K. authorities.”
  • Also appearing on the surveillance lists is Joaquín Almunia, vice president of the European Commission, which, among other powers, has oversight of antitrust issues in Europe. The commission has broad authority over local and foreign companies, and it has punished a number of American companies, including Microsoft and Intel, with heavy fines for hampering fair competition. The reports say that spies intercepted Mr. Almunia’s communications in 2008 and 2009. Mr. Almunia, a Spaniard, assumed direct authority over the commission’s antitrust office in 2010. He has been involved in a three-year standoff with Google over how the company runs its search engine. Competitors of the online giant had complained that it was prioritizing its own search results and using content like travel reviews and ratings from other websites without permission. While pushing for a settlement with Google, Mr. Almunia has warned that the company could face large fines if it does not cooperate.
  • Some condemned the surveillance on Friday as unjustified and improper. “This is not the type of behavior that we expect from strategic partners,” Pia Ahrenkilde Hansen, a spokeswoman for the European Commission, said on the latest revelations of American and British spying in Europe. Some of the surveillance relates to issues that are being scrutinized by President Obama and a panel he appointed in Washington that on Wednesday recommended tighter limits on the N.S.A., particularly on spying of foreign leaders, especially allies.
  • “We do not use our foreign intelligence capabilities to steal the trade secrets of foreign companies on behalf of — or give intelligence we collect to — U.S. companies to enhance their international competitiveness or increase their bottom line,” said Vanee Vines, an N.S.A. spokeswoman. But she added that some economic spying was justified by national security needs. “The intelligence community’s efforts to understand economic systems and policies, and monitor anomalous economic activities, are critical to providing policy makers with the information they need to make informed decisions that are in the best interest of our national security,” Ms. Vines said.
  • The surveillance reports show American and British spies’ deep appetite for information. The French companies Total, the oil and gas giant, and Thales, an electronics, logistics and transportation outfit, appear as targets, as do a French ambassador, an “Estonian Skype security team” and the German Embassy in Rwanda.
  • Multiple United Nations Missions in Geneva are listed as targets, including Unicef and the United Nations Institute for Disarmament Research. So is Médecins du Monde, a medical relief organization that goes into war-ravaged areas. Leigh Daynes, an executive director of the organization in Britain, responded to news about the surveillance by saying: “There is absolutely no reason for our operations to be secretly monitored.” More obvious intelligence targets are also listed, though in smaller numbers, including people identified as “Israeli grey arms dealer,” “Taleban ministry of refugee affairs” and “various entities in Beijing.” Some of those included are described as possible members of Al Qaeda, and as suspected extremists or jihadists.
  • While few if any American citizens appear to be named in the documents, they make clear that some of the intercepted communications either began or ended in the United States and that N.S.A. facilities carried out interceptions around the world in collaboration with their British partners. Some of the interceptions appear to have been made at the Sugar Grove, W.Va., listening post run by the N.S.A. and code-named Timberline, and some are explicitly tied to N.S.A. target lists in the reports.
  • Strengthening the likelihood that full transcripts were taken during the intercepts is the case of Mohamed Ibn Chambas, an official of the Economic Community of West African States, known as Ecowas, a regional initiative of 15 countries that promotes economic and industrial activity. Whether intentionally or through some oversight, when Mr. Chambas’s communications were intercepted in August 2009, dozens of his complete text messages were copied into one of the reports.
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    No mention of any "terrorist" targets. Could it be that Snowden and Greenwald are right, that the surveillance is not about terrorism at all? Surely our nation's leaders would not lie to us about that. Right. The Politics of Fear.
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Saul Alinsky Leaves the White House | The American Spectator - 0 views

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    "When Barack Obama leaves the White House tomorrow, he leaves with his worst dreams unrealized. Still, what he leaves behind is awful. Thank goodness he'll be gone. The very day after Obama was elected in 2008, I predicted in this space that his team would steal the Senate by hook and crook (see: Al Franken); nuke the filibuster at least for judicial nominees; liberalize voting laws (or enforcement thereof) to make fraud easier while charging opponents with "vote suppression"; drum up spurious allegations of civil rights violations; punish anti-abortion protesters; enact "copious new regulations, especially environmental, to be used selectively to ensnare other conservative malcontents"; invasively use the IRS to harass conservative organizations; and tacitly encourage civil unrest in furtherance of Obamite goals. All those predictions of course came true. Obama and company also waged bureaucratic war against independent inspectors general; tried their hardest (even illegally) to hobble fossil fuels industries; evaded Congress's intent by sending cash and uranium to a near-nuclear-ready Iran; fumbled and stumbled while veterans suffered virtually criminal neglect; wasted hundreds of billions of taxpayer dollars on projects that were not "shovel-ready" and did not create many jobs; oversaw an economy in which the workforce participation rate dropped to historically low levels while real median household income also fell and personal debt rose, and in which food stamp rolls grew to a number larger than the population of Spain; horrendously politicized the Justice Department; and saw race relations worsen for the first time in decades. In what should have been treated by the media as major scandals (or more major than the media represented them), the Obama administration encouraged illegal gun-running to Mexican cartels, with untold numbers of resultant deaths; failed to provide adequate security before or rescue during the Benghazi tragedy; provide
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Ukraine's Oligarchs Turn on Each Other | Consortiumnews - 0 views

  • n the never-never land of how the mainstream U.S. press covers the Ukraine crisis, the appointment last year of thuggish oligarch Igor Kolomoisky to govern one of the country’s eastern provinces was pitched as a democratic “reform” because he was supposedly too rich to bribe, without noting that his wealth had come from plundering the country’s economy.In other words, the new U.S.-backed “democratic” regime, after overthrowing democratically elected President Viktor Yanukovych because he was “corrupt,” was rewarding one of Ukraine’s top thieves by letting him lord over his own province, Dnipropetrovsk Oblast, with the help of his personal army.
  • Last year, Kolomoisky’s brutal militias, which include neo-Nazi brigades, were praised for their fierce fighting against ethnic Russians from the east who were resisting the removal of their president. But now Kolomoisky, whose financial empire is crumbling as Ukraine’s economy founders, has turned his hired guns against the Ukrainian government led by another oligarch, President Petro Poroshenko.Last Thursday night, Kolomoisky and his armed men went to Kiev after the government tried to wrest control of the state-owned energy company UkrTransNafta from one of his associates. Kolomoisky and his men raided the company offices to seize and apparently destroy records. As he left the building, he cursed out journalists who had arrived to ask what was going on. He ranted about “Russian saboteurs.”It was a revealing display of how the corrupt Ukrainian political-economic system works and the nature of the “reformers” whom the U.S. State Department has pushed into positions of power. According to BusinessInsider, the Kiev government tried to smooth Kolomoisky’s ruffled feathers by announcing “that the new company chairman [at UkrTransNafta] would not be carrying out any investigations of its finances.”
  • Yet, it remained unclear whether Kolomoisky would be satisfied with what amounts to an offer to let any past thievery go unpunished. But if this promised amnesty wasn’t enough, Kolomoisky appeared ready to use his private army to discourage any accountability.On Monday, Valentyn Nalyvaychenko, chief of the State Security Service, accused Dnipropetrovsk officials of financing armed gangs and threatening investigators, Bloomberg News reported, while noting that Ukraine has sunk to 142nd place out of 175 countries in Transparency International’s Corruptions Perception Index, the worst in Europe.The see-no-evil approach to how the current Ukrainian authorities do business relates as well to Ukraine’s new Finance Minister Natalie Jaresko, who appears to have enriched herself at the expense of a $150 million U.S.-taxpayer-financed investment fund for Ukraine.
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  • Regarding Kolomoisky’s claim about “Russian saboteurs,” the government said that was not the case, explaining that the clash resulted from the parliament’s vote last week to reduce Kolomoisky’s authority to run the company from his position as a minority owner. As part of the shakeup, Kolomoisky’s protégé Oleksandr Lazorko was fired as chairman, but he refused to leave and barricaded himself in his office, setting the stage for Kolomoisky’s arrival with armed men.On Tuesday, the New York Times reported on the dispute but also flashed back to its earlier propagandistic praise of the 52-year-old oligarch, recalling that “Mr. Kolomoisky was one of several oligarchs, considered too rich to bribe, who were appointed to leadership positions in a bid to stabilize Ukraine.”Kolomoisky also is believed to have purchased influence inside the U.S. government through his behind-the-scenes manipulation of Ukraine’s largest private gas firm, Burisma Holdings. Last year, the shadowy Cyprus-based company appointed Vice President Joe Biden’s son, Hunter Biden, to its board of directors. Burisma also lined up well-connected lobbyists, some with ties to Secretary of State John Kerry, including Kerry’s former Senate chief of staff David Leiter, according to lobbying disclosures.
  • Jaresko, a former U.S. diplomat who received overnight Ukrainian citizenship in December to become Finance Minister, had been in charge of the Western NIS Enterprise Fund (WNISEF), which became the center of insider-dealing and conflicts of interest, although the U.S. Agency for International Development showed little desire to examine the ethical problems – even after Jaresko’s ex-husband tried to blow the whistle. [See Consortiumnews.com’s “Ukraine Finance Minister’s American ‘Values.’”]Passing Out the BillionsJaresko will be in charge of dispensing the $17.5 billion that the International Monetary Fund is allocating to Ukraine, along with billions of dollars more expected from U.S. and European governments.
  • As Time magazine reported, “Leiter’s involvement in the firm rounds out a power-packed team of politically-connected Americans that also includes a second new board member, Devon Archer, a Democratic bundler and former adviser to John Kerry’s 2004 presidential campaign. Both Archer and Hunter Biden have worked as business partners with Kerry’s son-in-law, Christopher Heinz, the founding partner of Rosemont Capital, a private-equity company.”According to investigative journalism in Ukraine, the ownership of Burisma has been traced to Privat Bank, which is controlled by Kolomoisky.So, it appears that Ukraine’s oligarchs who continue to wield enormous power inside the corrupt country are now circling each other over what’s left of the economic spoils and positioning themselves for a share of the international bailouts to come.
  • As for “democratic reform,” only in the upside-down world of the State Department’s Orwellian “information war” against Russia over Ukraine would imposing a corrupt and brutal oligarch like Kolomoisky as the unelected governor of a defenseless population be considered a positive.(Early Wednesday morning, President Poroshenko dismissed Kolomoisky from his post as Dnipropetrovsk regional governor.)
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    Another of the greatest U.S. exports: corruption.
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    Corporate oligarchs leading private but well armed armies in raids against the Ukrainian government holdings - controlled by other corporate oligarchs? This article dives into the mess that the USA and European NATO allies have stirred in the Ukraine, and through this lens we get to see what the world will look like when corporate oligarchs and their Bankster masters rule the world. The article is revealing, but it fails to connect the corporatist to the Banks that are sending in billions of dollars. The connection instead is made to the democratic governments intent on pushing the world into world war 3. Nor is there much mention of the oil and natural gas pipeline and supply geographics that dominate battlefields from the Ukraine, to Syria, Iraq and Lybia. The New World Order needs a third World War if it's to truly overturn the fragile post World War II economic order loosely based on free market capitalism, individual liberty and democratic governance. The end of national sovereignty, religious and cultural identities has one more hurdle. And there is no doubt in my mind that the elites are ready to jump that hurdle. World War III has spread from the middle east to middle Europe. Best we all hold on. .................. "Exclusive: Ukraine's post-coup regime is facing what looks like a falling-out among thieves as oligarch-warlord Igor Kolomoisky, who was given his own province to rule, brought his armed men to Kiev to fight for control of the state-owned energy company, further complicating the State Department's propaganda efforts, reports Robert Parry. In the never-never land of how the mainstream U.S. press covers the Ukraine crisis, the appointment last year of thuggish oligarch Igor Kolomoisky to govern one of the country's eastern provinces was pitched as a democratic "reform" because he was supposedly too rich to bribe, without noting that his wealth had come from plundering the country's economy. In other words, the new U.S.-b
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Revealed - the capitalist network that runs the world - physics-math - 19 October 2011 ... - 0 views

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    The secret 1% revealed at last. Using advanced "complex systems heuristics", a group of mathematicians and scientist studying the stability of complex systems has applied their techniques to study the interlocking relationships driving the global economy. They claim to have identified the inner architecture of global economic power, and hope to make it more stable. Incredible stuff! A list of the top 50 of the 147 superconnected companies cross references nicely with the question, "Who Owns the Federal Reserve Bankster Cartel?" The focus is on global "Transnational Corporations" (TNCs) and how the interlocking ownership/cross-director-relationships has affected the global economy. The study discovers a "super-entity" comprised of a core 147 companies that control over 40% of the world's wealth and productivity capacity. Most of these are global banking and financial operations. Yes, Wall Street Banksters! "In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network," says James Glattfelder, head of the Zurich research team. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group. Collectively this 1% control a further 60% of global revenues. excerpt: AS OWS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters' worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

    The study's assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. Pushing the analysis further, they say, could help to identify ways of making global capitalism more stable.

    The idea that a few bankers control a large chunk of the global econo
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    Important work but perhaps too immature to base decisions on with confidence. I was struck by this statement: "Glattfelder says we may need global anti-trust rules, which now exist only at national level, to limit over-connection among TNCs. Sugihara says the analysis suggests one possible solution: firms should be taxed for excess interconnectivity to discourage this risk." My relevant question is, who would be the recipients of the postulated tax? Anytime you create a revenue stream, the recipients acquire a vested interest in maintaining and expanding that revenue stream and the folks who pay the revenue acquire a vested interest in minimizing or eliminating the expense. While the payers incentives are consistent with the article's statement, the identities of the recipients and their incentives to tweak the tax to produce more revenue needs more thought and discussion with a strong focus on: [i] who makes that decision; [ii] who has the the power to decide whether that authority is abused; and [iii] who has standing to initiate actions to correct abuse. On the latter, the U.S. Constitution would seem to require that those who pay the taxes are entitled to Due Process. But at the same time, the individual consumer can also be injured by abuse. However, a hallmark trait of most trade agreements is that only government and regulated corporations are granted standing to challenge regulatory decisions, which has skewed their interpretation heavily to the corporate side. Universal standing is the cure.
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US military involvement in Syria a 'mistake': Gates | ArabNews - 0 views

  • Former US Defense Secretary Robert Gates warned yesterday that deepening US military involvement in Syria’s civil war would be a “mistake,” warning the outcome would be unpredictable and messy.
  • Gates’ comments on Syria come amid debate in Washington over whether to step up military support for rebels fighting the regime of President Bashar Assad, even as the administration attempts a new peace initiative with Russia. “I thought it was a mistake in Libya, and I think it is a mistake in Syria, even if we had intervened more significantly in Syria a year ago or six months ago. We overestimate our ability to determine outcomes. “Caution, particularly in terms of arming these groups and in terms of US military involvement, is in order,” he said. “Anybody who says, ‘It’s going to be clean. It’s going to be neat. You can establish safe zones, and it’ll be just swell,’ well, most wars aren’t that way,” he said. Gates, who served under both George W Bush and President Barack Obama, was US defense secretary in 2011 when the United States joined a NATO-led air operation in Libya that helped rebels topple Libyan leader Moammar Qaddafi.
  • WASHINGTON: Former US Defense Secretary Robert Gates warned yesterday that deepening US military involvement in Syria’s civil war would be a “mistake,” warning the outcome would be unpredictable and messy.
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    Gates' remarks follow similar warnings by several retired U.S. generals that the outcome of war with Syria would be unpredictable. This is a proxy war being waged by the U.S., which is providing "humanitarian" aid to the "rebels," whilst Saudi Arabia and Qatar ostensibly provide their weapons. (Ostensibly, because most of their weapons are being transported by U.S. proxies from Libya and most of the "rebels" are non-Syrian foreign fighters, largely al Queda, infiltrated into Syria via Turkey.) The U.S. has moved anti-aircraft missile teams into areas of Turkey and Jordan that border Syria, a move that was met by Russia moving its own advanced anti-aircraft missile teams into Syria itself and repositioning a sizeable part of the Russian Navy in Syria and ramping up its naval presence in the Mediterranean.   Meanwhile, Lebanon's Hezbollah has pledged unity with Syria's existing government and is adding soldiers to the Syrian Army's forces. Israel has responded with two air assaults on Syria, ostensibly to deny advanced weaponry to Hezbollah. Iran has also pledged military involvement if needed to preserve the existing Syrian government.  In sum, Syria is a very large powder keg with a very short fuse that could easily erupt into a larger war with Russia and Iran too, with the resulting closing of the Straits of Hormuz and thereby plunging the world into economic disaster resulting from severe oil shortages. Nonetheless, Neocons and Zionists in the U.S. are pushing hard for the U.S. to directly wade in militarily.  Civilian casualties in the so-called Syrian "civil war" are estimated to be between 80,000 and 120,000 thus far.   
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GCHQ taps fibre-optic cables for secret access to world's communications | UK news | gu... - 0 views

  • Britain's spy agency GCHQ has secretly gained access to the network of cables which carry the world's phone calls and internet traffic and has started to process vast streams of sensitive personal information which it is sharing with its American partner, the National Security Agency (NSA).The sheer scale of the agency's ambition is reflected in the titles of its two principal components: Mastering the Internet and Global Telecoms Exploitation, aimed at scooping up as much online and telephone traffic as possible. This is all being carried out without any form of public acknowledgement or debate.One key innovation has been GCHQ's ability to tap into and store huge volumes of data drawn from fibre-optic cables for up to 30 days so that it can be sifted and analysed. That operation, codenamed Tempora, has been running for some 18 months.
  • GCHQ and the NSA are consequently able to access and process vast quantities of communications between entirely innocent people, as well as targeted suspects.This includes recordings of phone calls, the content of email messages, entries on Facebook and the history of any internet user's access to websites – all of which is deemed legal, even though the warrant system was supposed to limit interception to a specified range of targets.The existence of the programme has been disclosed in documents shown to the Guardian by the NSA whistleblower Edward Snowden as part of his attempt to expose what he has called "the largest programme of suspicionless surveillance in human history"."It's not just a US problem. The UK has a huge dog in this fight," Snowden told the Guardian. "They [GCHQ] are worse than the US."
  • However, on Friday a source with knowledge of intelligence argued that the data was collected legally under a system of safeguards, and had provided material that had led to significant breakthroughs in detecting and preventing serious crime.Britain's technical capacity to tap into the cables that carry the world's communications – referred to in the documents as special source exploitation – has made GCHQ an intelligence superpower.By 2010, two years after the project was first trialled, it was able to boast it had the "biggest internet access" of any member of the Five Eyes electronic eavesdropping alliance, comprising the US, UK, Canada, Australia and New Zealand.UK officials could also claim GCHQ "produces larger amounts of metadata than NSA". (Metadata describes basic information on who has been contacting whom, without detailing the content.)By May last year 300 analysts from GCHQ, and 250 from the NSA, had been assigned to sift through the flood of data.The Americans were given guidelines for its use, but were told in legal briefings by GCHQ lawyers: "We have a light oversight regime compared with the US".
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  • When it came to judging the necessity and proportionality of what they were allowed to look for, would-be American users were told it was "your call".The Guardian understands that a total of 850,000 NSA employees and US private contractors with top secret clearance had access to GCHQ databases.
  • For the 2 billion users of the world wide web, Tempora represents a window on to their everyday lives, sucking up every form of communication from the fibre-optic cables that ring the world.The NSA has meanwhile opened a second window, in the form of the Prism operation, revealed earlier this month by the Guardian, from which it secured access to the internal systems of global companies that service the internet.The GCHQ mass tapping operation has been built up over five years by attaching intercept probes to transatlantic fibre-optic cables where they land on British shores carrying data to western Europe from telephone exchanges and internet servers in north America.This was done under secret agreements with commercial companies, described in one document as "intercept partners".The papers seen by the Guardian suggest some companies have been paid for the cost of their co-operation and GCHQ went to great lengths to keep their names secret. They were assigned "sensitive relationship teams" and staff were urged in one internal guidance paper to disguise the origin of "special source" material in their reports for fear that the role of the companies as intercept partners would cause "high-level political fallout".
  • The GCHQ documents that the Guardian has seen illustrate a constant effort to build up storage capacity at the stations at Cheltenham, Bude and at one overseas location, as well a search for ways to maintain the agency's comparative advantage as the world's leading communications companies increasingly route their cables through Asia to cut costs. Meanwhile, technical work is ongoing to expand GCHQ's capacity to ingest data from new super cables carrying data at 100 gigabits a second. As one training slide told new users: "You are in an enviable position – have fun and make the most of it."
  • The categories of material have included fraud, drug trafficking and terrorism, but the criteria at any one time are secret and are not subject to any public debate. GCHQ's compliance with the certificates is audited by the agency itself, but the results of those audits are also secret.An indication of how broad the dragnet can be was laid bare in advice from GCHQ's lawyers, who said it would be impossible to list the total number of people targeted because "this would be an infinite list which we couldn't manage".There is an investigatory powers tribunal to look into complaints that the data gathered by GCHQ has been improperly used, but the agency reassured NSA analysts in the early days of the programme, in 2009: "So far they have always found in our favour".
  • Historically, the spy agencies have intercepted international communications by focusing on microwave towers and satellites. The NSA's intercept station at Menwith Hill in North Yorkshire played a leading role in this. One internal document quotes the head of the NSA, Lieutenant General Keith Alexander, on a visit to Menwith Hill in June 2008, asking: "Why can't we collect all the signals all the time? Sounds like a good summer project for Menwith."By then, however, satellite interception accounted for only a small part of the network traffic. Most of it now travels on fibre-optic cables, and the UK's position on the western edge of Europe gave it natural access to cables emerging from the Atlantic.
  • The processing centres apply a series of sophisticated computer programmes in order to filter the material through what is known as MVR – massive volume reduction. The first filter immediately rejects high-volume, low-value traffic, such as peer-to-peer downloads, which reduces the volume by about 30%. Others pull out packets of information relating to "selectors" – search terms including subjects, phone numbers and email addresses of interest. Some 40,000 of these were chosen by GCHQ and 31,000 by the NSA. Most of the information extracted is "content", such as recordings of phone calls or the substance of email messages. The rest is metadata.
  • "The criteria are security, terror, organised crime. And economic well-being. There's an auditing process to go back through the logs and see if it was justified or not. The vast majority of the data is discarded without being looked at … we simply don't have the resources."However, the legitimacy of the operation is in doubt. According to GCHQ's legal advice, it was given the go-ahead by applying old law to new technology. The 2000 Regulation of Investigatory Powers Act (Ripa) requires the tapping of defined targets to be authorised by a warrant signed by the home secretary or foreign secretary.However, an obscure clause allows the foreign secretary to sign a certificate for the interception of broad categories of material, as long as one end of the monitored communications is abroad. But the nature of modern fibre-optic communications means that a proportion of internal UK traffic is relayed abroad and then returns through the cables.
  • British spy agency collects and stores vast quantities of global email messages, Facebook posts, internet histories and calls, and shares them with NSA, latest documents from Edward Snowden reveal
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    Note particularly that the Brit criteria adds economic data to the list of categories categories the NSA trawls for and shares its data with the U.S. NSA. Both agencies claim to be targeting foreigners, so now we're into the "we surveil your citizens; you surveil our citizens, then we'll share the results" scenario that leaves both sides of the pond with a superficial excuse to say "we don't surveil our own citizens, just foreigners." But it's just ring-around-the-rosy. 850,000 NSA employees and U.S. private contractors with access to GCHQ surveillance databases.  Lots more in the article that I didn't highlight.
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The Fourth Industrial Revolution: what it means and how to respond - Agenda - The World... - 0 views

  • The First Industrial Revolution used water and steam power to mechanize production. The Second used electric power to create mass production. The Third used electronics and information technology to automate production. Now a Fourth Industrial Revolution is building on the Third, the digital revolution that has been occurring since the middle of the last century. It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.
  • Like the revolutions that preceded it, the Fourth Industrial Revolution has the potential to raise global income levels and improve the quality of life for populations around the world. To date, those who have gained the most from it have been consumers able to afford and access the digital world; technology has made possible new products and services that increase the efficiency and pleasure of our personal lives. Ordering a cab, booking a flight, buying a product, making a payment, listening to music, watching a film, or playing a game—any of these can now be done remotely.
  • In the future, technological innovation will also lead to a supply-side miracle, with long-term gains in efficiency and productivity. Transportation and communication costs will drop, logistics and global supply chains will become more effective, and the cost of trade will diminish, all of which will open new markets and drive economic growth.
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  • As automation substitutes for labor across the entire economy, the net displacement of workers by machines might exacerbate the gap between returns to capital and returns to labor. On the other hand, it is also possible that the displacement of workers by technology will, in aggregate, result in a net increase in safe and rewarding jobs.
  • I am convinced of one thing—that in the future, talent, more than capital, will represent the critical factor of production.
  • This will give rise to a job market increasingly segregated into “low-skill/low-pay” and “high-skill/high-pay” segments, which in turn will lead to an increase in social tensions.
  • In addition to being a key economic concern, inequality represents the greatest societal concern associated with the Fourth Industrial Revolution.
  • The largest beneficiaries of innovation tend to be the providers of intellectual and physical capital—the innovators, shareholders, and investors—which explains the rising gap in wealth between those dependent on capital versus labor.
  • Technology is therefore one of the main reasons why incomes have stagnated, or even decreased, for a majority of the population in high-income countries: the demand for highly skilled workers has increased while the demand for workers with less education and lower skills has decreased. The result is a job market with a strong demand at the high and low ends, but a hollowing out of the middle.
  • A winner-takes-all economy that offers only limited access to the middle class is a recipe for democratic malaise and dereliction.
  • An underlying theme in my conversations with global CEOs and senior business executives is that the acceleration of innovation and the velocity of disruption are hard to comprehend or anticipate and that these drivers constitute a source of constant surprise, even for the best connected and most well informed. Indeed, across all industries, there is clear evidence that the technologies that underpin the Fourth Industrial Revolution are having a major impact on businesses.
  • On the supply side, many industries are seeing the introduction of new technologies that create entirely new ways of serving existing needs and significantly disrupt existing industry value chains. Disruption is also flowing from agile, innovative competitors who, thanks to access to global digital platforms for research, development, marketing, sales, and distribution, can oust well-established incumbents faster than ever by improving the quality, speed, or price at which value is delivered.
  • Major shifts on the demand side are also occurring, as growing transparency, consumer engagement, and new patterns of consumer behavior (increasingly built upon access to mobile networks and data) force companies to adapt the way they design, market, and deliver products and services.
  • A key trend is the development of technology-enabled platforms that combine both demand and supply to disrupt existing industry structures, such as those we see within the “sharing” or “on demand” economy. These technology platforms, rendered easy to use by the smartphone, convene people, assets, and data—thus creating entirely new ways of consuming goods and services in the process. In addition, they lower the barriers for businesses and individuals to create wealth, altering the personal and professional environments of workers. These new platform businesses are rapidly multiplying into many new services, ranging from laundry to shopping, from chores to parking, from massages to travel.
  • On the whole, there are four main effects that the Fourth Industrial Revolution has on business—on customer expectations, on product enhancement, on collaborative innovation, and on organizational forms.
  • Overall, the inexorable shift from simple digitization (the Third Industrial Revolution) to innovation based on combinations of technologies (the Fourth Industrial Revolution) is forcing companies to reexamine the way they do business. The bottom line, however, is the same: business leaders and senior executives need to understand their changing environment, challenge the assumptions of their operating teams, and relentlessly and continuously innovate.
  • governments will increasingly face pressure to change their current approach to public engagement and policymaking, as their central role of conducting policy diminishes owing to new sources of competition and the redistribution and decentralization of power that new technologies make possible.
  • Ultimately, the ability of government systems and public authorities to adapt will determine their survival. If they prove capable of embracing a world of disruptive change, subjecting their structures to the levels of transparency and efficiency that will enable them to maintain their competitive edge, they will endure. If they cannot evolve, they will face increasing trouble.
  • In the end, it all comes down to people and values. We need to shape a future that works for all of us by putting people first and empowering them. In its most pessimistic, dehumanized form, the Fourth Industrial Revolution may indeed have the potential to “robotize” humanity and thus to deprive us of our heart and soul. But as a complement to the best parts of human nature—creativity, empathy, stewardship—it can also lift humanity into a new collective and moral consciousness based on a shared sense of destiny. It is incumbent on us all to make sure the latter prevails.
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Arnold Ahlert: Liberty at Risk - The Patriot Post - 1 views

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    "The American Left's desire to crush Liberty and dissent in order to "fundamentally transform the United States of America" has reached metastatic levels. In the last three weeks alone, the following stories have surfaced. All of which indicate we are well on our way toward relinquishing our birthright. Even worse, millions of Americans are apparently more than willing to do so. First, this week the Supreme Court heard arguments in the United States v. Texas case that will determine whether a president can unilaterally rewrite immigration law. If SCOTUS rules in Barack Obama's favor, the separation of powers outlined in the first three articles of the Constitution will be rendered moot and, as political analyst Charles Krauthammer wryly observed, "you can send Congress home." And the Left is not content to stop there. A coalition of 118 cities and counties have filed a legal brief asserting they will lose up to $800 million in economic benefits if large numbers of illegal aliens remain subject to deportation. Second, the IRS has admitted it abides the use of fraudulent Social Security numbers used by illegal aliens to process tax payments - and refunds. Third, in New York and California, Democratic attorneys general Eric Schneiderman and Kamala Harris are pursuing fraud investigations against Exxon, based on the premise they can "prosecute persons and institutions with nonconforming views on global warming," writes National Review's Kevin Williams. "Prosecuting political institutions and businesses for political activism is brown-shirt business." Fourth, the Obama administration, already under fire for its determination to flood America with Syrian "refugees," announced it will reduce its vetting process to three months, instead of 18-24 months. They claim the reduced time is necessary to handle a sped-up "surge operation" whose population is 99% Sunni Muslim. Even more insulting, Gina Kassem, the regional refugee coordinator at t
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    I'll leave well enough alone on Mr. Ahert's positions regarding the U.S. v. Texas case and IRS reliance on fraudulent Social Security numbers; I have not studied those issues. But Mr. Ahert has not done his homework on the Exxon investigations and on the law governing the Syrian refugee situation. Re Exxon, the criminal investigations are to determine whether Exxon committed fraud against *investors* by concealing its knowledge of climate change the company was contributing to --- and knew of decades ago. We don't yet know the outcome of those investigations, but this is a far cry from prosecuting "persons and institutions with nonconforming views on global warming." If pursued, it will be a prosecution of a company -- and conceivably its managers -- who damned well knew through in-house scientific studies it sponsored that global warming was man-made and that their own company was a major causative agent. On the Syrian refugee situation, the right of war refugees to refuge in the U.S. and all other nations is, under the U.S. Constitution's Treaty Clause, "the law of this land." There is nothing in that body of international law created by treaty that permits the U.S. or any other nation to delay providing refuge for purposes of vetting refugees for possible terrorists among them. Vetting can, however, proceed lawfully after refugees are admitted while being held in refugee camps. One need only ask how one would feel were the tables turned and it was yourself fleeing from U.S. violence? Would you want to be forced to linger in the war zone while your anti-terrorism bona fides were established over a period of months? Refuge must be granted when it is needed, not months or years later, regardless of how much "terrorist" hysteria our mainstream media and the military-industrial complex drums up to fan the flames of war and industry profits. And this is all the more a moral case because it is the U.S. and its allies' illegal proxy war in Syria that is creating
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Byron York: Justice Department demolishes case against Trump order | Washington Examiner - 1 views

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    "James Robart, the U.S. district judge in Washington State, offered little explanation for his decision to stop President Trump's executive order temporarily suspending non-American entry from seven terror-plagued countries. Robart simply declared his belief that Washington State, which in its lawsuit against Trump argued that the order is both illegal and unconstitutional, would likely win the case when it is tried. Now the government has answered Robart, and unlike the judge, Justice Department lawyers have produced a point-by-point demolition of Washington State's claims. Indeed, for all except the most partisan, it is likely impossible to read the Washington State lawsuit, plus Robart's brief comments and writing on the matter, plus the Justice Department's response, and not come away with the conclusion that the Trump order is on sound legal and constitutional ground. Beginning with the big picture, the Justice Department argued that Robart's restraining order violates the separation of powers, encroaches on the president's constitutional and legal authority in the areas of foreign affairs, national security, and immigration, and "second-guesses the president's national security judgment" about risks faced by the United States. Indeed, in court last week, Robart suggested that he, Robart, knows as much, or perhaps more, than the president about the current state of the terrorist threat in Yemen, Somalia, Libya, and other violence-plagued countries. In an exchange with Justice Department lawyer Michelle Bennett, Robart asked, "How many arrests have there been of foreign nationals for those seven countries since 9/11?" "Your Honor, I don't have that information," said Bennett. "Let me tell you," said Robart. "The answer to that is none, as best I can tell. So, I mean, you're here arguing on behalf of someone [President Trump] that says: We have to protect the United States from these individuals coming from these countries, and there's no support for that."
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Iran Takes Defiant Steps Over New Sanctions - NYTimes.com - 0 views

  • Iran took defiant steps on Monday in response to the intensified Western sanctions aimed at stifling its oil exports, announcing legislation intended to disrupt traffic in the Strait of Hormuz, a vital Persian Gulf shipping lane, and testing missiles in a desert drill clearly intended as a warning to Israel and the United States.
  • The legislation calls for Iran's military to block any oil tanker heading through the strait en route to countries no longer buying Iranian crude because of the European Union embargo, which took effect on Sunday. It was unclear whether the legislation would pass or precisely how Iran would enforce it, given that the United States Navy's Fifth Fleet patrols the strait. Pentagon officials have said Iran's military is capable of closing the strait temporarily, and the Obama administration has warned that any such move would constitute a "red line" that would provoke an American response. The strait, connecting the Gulf of Oman to the Persian Gulf, is the conduit for one fifth of the world's oil supply and has been called the world's most important "oil chokepoint" by the United States Department of Energy.
  • Iranian news services quoted Ibrahim Agha-Mohammadi, a member of Parliament's National Security and Foreign Policy Committee, as saying the panel drafted the legislation "as an answer to the European Union's oil sanctions against the Islamic Republic of Iran." The European embargo, along with new American restrictions that took effect on Friday, are intended to penalize Iran for refusing to suspend all uranium enrichment. Western nations and Israel suspect the enrichment program is aimed at creating the ability to make nuclear weapons, which Iran denies. While high-level talks have faltered, a meeting of lower level negotiators is planned for Tuesday. In the second saber-rattling step, Iranian news agencies announced that the elite Revolutionary Guards Corps had begun three days of missile testing in the desert region of the central province of Semnan. Brig. Gen. Amir Ali Hajizadeh, a commander of the exercises, was quoted as saying they were intended as practice responses to attacks by "adventurous nations," a reference to Israel and its most important ally, the United States.
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  • The Islamic Republic News Agency quoted General Hajizadeh as saying "if any form of incident happens, Iran's ground-to-ground missiles will rain like thunderbolts upon the aggressors."
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    More at these sites: http://www.businessinsider.com/iran-considers-closure-of-strait-of-hormuz-after-european-union-sanctions-2012-7 http://www.oil-price.net/en/articles/iran-oil-strait-or-hormuz.php http://www.aljazeera.com/news/middleeast/2012/07/201272162622744173.html The U.S. Navy's claimed ability to reopen the straits within a few days is dubious, despite the announcement that another Navy minesweeper is on its way to the Persian Gulf. In tests about two years ago, a team of U.S. minesweepers found only 1 out of 20 practice mines over a period of several days. Niow add to the calculus Iran's thousands of below-radar cruise missiles, its ICBMs armed with conventiional warheads (the U.S. East Coast and the EU are both in range), torpedo boats, and its fleet of mini-submarines designed for stealth and operation in shallow waters. The U.S. has a single carrier battle group in the Persian Gulf. That's one carrier I would not want to be on if war erupts in the Straits of Hormuz. But at the same time, the Iranian Parliament has no power to declare war. That power resides with Ayatolla Khomeni and the Supreme Council of the Revolutionary Guards.  So the legislation is more symbolic than a similar bill in the U.S. would be. But still, it's a strong message that Parliament has Khomeni's back if he decides to retaliate against U.S. and E.U. economic warfare. 
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Putin's quiet Latin America play | TheHill - 0 views

  • Away from the conflict in Ukraine, Russian President Vladimir Putin is quietly seeking a foothold in Latin America, military officials warn.To the alarm of lawmakers and Pentagon officials, Putin has begun sending navy ships and long-range bombers to the region for the first time in years.ADVERTISEMENTRussia’s defense minister says the country is planning bases in Cuba, Venezuela, and Nicaragua, and just last week, Putin’s national security team met to discuss increasing military ties in the region.“They’re on the march,” Sen. Joe Donnelly (D-Ind.) said at a Senate hearing earlier this month. “They’re working the scenes where we can’t work. And they’re doing a pretty good job.”
  • Gen. James Kelly, commander of U.S. Southern Command said there has been a “noticeable uptick in Russian power projection and security force personnel” in Latin America.“It has been over three decades since we last saw this type of high-profile Russian military presence,” Kelly said at the March 13 hearing. The U.S. military says it has been forced to cut back on its engagement with military and government officials in Latin America due to budget cuts. Kelly said the U.S. military had to cancel more than 200 effective engagement activities and multi-lateral exercises in Latin America last year.With the American presence waning, officials say rivals such as Russia, China and Iran are quickly filling the void.
  • Iran has opened up 11 additional embassies and 33 cultural centers in Latin America while supporting the "operational presence" of militant group Lebanese Hezbollah in the region.“On the military side, I believe they're establishing, if you will, lily pads for future use if they needed to use them,” Kelly said. China is making a play for Latin America a well, and is now the fastest growing investor in the region, according to experts. Although their activity is mostly economic, they are also increasing military activity through educational exchanges. The Chinese Navy conducted a goodwill visit in Brazil, Chile and Argentina last year and conducted its first-ever naval exercise with the Argentine Navy.
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  • “Our relationships, our leadership, and our influence in the Western Hemisphere are paying the price,” Kelly said.Some experts warn against being too alarmist, and say Russia, China and Iran do not have the ability or desire to project military power beyond their borders. Army War College adjunct professor Gabriel Marcella said Russia's maneuvering is more about posturing than a real threat. "Latin America is seen as an opportunity to challenge the United States in terms of global presence," he said. "They want to show the flag to assert their presence and say they need to be counted on the world stage." Other experts said the encroachment of rivals has huge economic implications for the U.S., which has more trade partners in Latin America than in any other region in the world. 
  • “[Russia’s presence] serves to destabilize what has become a more stabilized, middle class continent with an increasing respect for the rule of law. ... Any type of unsettling of that environment will scare off investors,” said Jason Marczak, deputy director at the Atlantic Council’s Adrienne Arsht Latin America Center.“Market economies and democracies are fundamental for trade, for jobs, and for stable investment environments," he said. Marczak noted the instability in Venezuela, which is facing civil unrest from anti-government protestors.“In Venezuela, a lot of the money that’s been able to prop up President Chavez and now Maduro has been Chinese money,” Kelly said. 
  • And while Chinese investment in Latin America could have positive aspects for the region, it could also make it more difficult for U.S. official to push labor and environmental safeguards that it argues are building blocks for democracy, Marczak said.  Angel Rabasa, a senior political scientist at RAND, said cuts to the defense budget are going to accelerate a long trend of U.S. neglect and disengagement with Latin America. According to Sen. Tim Kaine (D-Va.), there are 10 countries in Latin America that currently have no U.S. ambassador because they either haven’t been nominated yet or confirmed, a sign that the region is seen as a low priority.“We will be losing the ability to influence developments in a region that is very important to us because of proximity,” Rabasa said. 
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    While Obama shifts to the East and tries to encircle Russia with NATO missile batteries, Putin shifts to the Southwest, surrounding the U.S. with missile batteries. One gets the sniff that the BRICS nations are setting up a military defense.   
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Is Open-Ended Chaos the Desired US-Israeli Aim in the Middle East? » CounterP... - 0 views

  • During the last week we have seen Sunni militias take control of ever-greater swathes of eastern Syria and western Iraq. In the mainstream media, the analysis of this emerging reality has been predictably idiotic, basically centering on whether: a) Obama is to blame for this for having removed US troops in compliance with the 2008 Status of Forces Agreement (SOFA) negotiated and signed by Bush. b) Obama is “man enough” to putatively resolve the problem by going back into the country and killing more people and destroying whatever remains of the country’s infrastructure. This cynically manufactured discussion has generated a number of intelligent rejoinders on the margins of the mainstream media system. These essays, written by people such as Juan Cole, Robert Parry, Robert Fisk and Gary Leupp, do a fine job of explaining the US decisions that led to the present crisis, while simultaneously reminding us how everything occurring  today was readily foreseeable as far back as 2002.
  • What none of them do, however, is consider whether the chaos now enveloping the region might, in fact, be the desired aim of policy planners in Washington and Tel Aviv. Rather, each of these analysts presumes that the events unfolding in Syria and Iraq are undesired outcomes engendered by short-sighted decision-making at the highest levels of the US government over the last 12 years. Looking at the Bush and Obama foreign policy teams—no doubt the most shallow and intellectually lazy members of that guild to occupy White House in the years since World War II—it is easy to see how they might arrive at this conclusion. But perhaps an even more compelling reason for adopting this analytical posture is that it allows these men of clear progressive tendencies to maintain one of the more hallowed, if oft-unstated, beliefs of the Anglo-Saxon world view.
  • What is that? It is the idea that our engagements with the world outside our borders—unlike those of, say, the Russians and the Chinese—are motivated by a strongly felt, albeit often corrupted, desire to better the lives of those whose countries we invade. While this belief seems logical, if not downright self-evident within our own cultural system, it is frankly laughable to many, if not most, of the billions who have grown up outside of our moralizing echo chamber. What do they know that most of us do not know, or perhaps more accurately, do not care to admit?
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  • First, that we are an empire, and that all empires are, without exception, brutally and programmatically self-seeking. Second, that one of the prime goals of every empire is to foment ongoing internecine conflict in the territories whose resources and/or strategic outposts they covet. Third, that the most efficient way of sparking such open-ended internecine conflict is to brutally smash the target country’s social matrix and physical infrastructure. Fourth, that ongoing unrest has the additional perk of justifying the maintenance and expansion of the military machine that feeds the financial and political fortunes of the metropolitan elite. In short, what of the most of the world understands (and what even the most “prestigious” Anglo-Saxon analysts cannot seem to admit) is that divide and rule is about as close as it gets to a universal recourse the imperial game and that it is, therefore, as important to bear it in mind today as it was in the times of Alexander the Great, Julius Caesar, the Spanish Conquistadors and the British Raj.
  • To those—and I suspect there are still many out there—for whom all this seems too neat or too conspiratorial, I would suggest a careful side-by side reading of: a) the “Clean Break” manifesto generated by the Jerusalem-based Institute for Advanced Strategic and Political Studies (IASPS) in 1996 and b) the “Rebuilding America’s Defenses” paper generated by The Project for a New American Century (PNAC) in 2000, a US group with deep personal and institutional links to the aforementioned Israeli think tank, and with the ascension of  George Bush Junior to the White House, to the most exclusive  sanctums of the US foreign policy apparatus.
  • To read the cold-blooded imperial reasoning in both of these documents—which speak, in the first case, quite openly of the need to destabilize the region so as to reshape Israel’s “strategic environment” and, in the second of the need to dramatically increase the number of US “forward bases” in the region—as I did twelve years ago, and to recognize its unmistakable relationship to the underlying aims of the wars then being started by the US in Afghanistan and Iraq, was a deeply disturbing experience. To do so now, after the US’s systematic destruction of Iraq and Libya—two notably oil-rich countries whose delicate ethnic and religious balances were well known to anyone in or out of government with more than passing interest in history—, and after the its carefully calibrated efforts to generate and maintain murderous and civilization-destroying stalemates in Syria and Egypt (something that is easily substantiated despite our media’s deafening silence on the subject), is downright blood-curdling.
  • And yet, it seems that for even very well-informed analysts, it is beyond the pale to raise the possibility that foreign policy elites in the US and Israel, like all virtually all the ambitious hegemons before them on the world stage, might have quite coldly and consciously fomented open-ended chaos in order to achieve their overlapping strategic objectives in this part of the world.
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    This is the most succinct distillation of U.S. (and Israeli) foreign policy in the Mideast and Northern Africa ("MENA") areas that I have read to date. And it's absolutely spot on. The only major portion omitted is the Israeli ambition to expand its territory drastically to encompass from the Nile River in Egypt to the Jordan River in Southwest Asia and eastward throughout the Arabian Peninsula, whilst becoming the empirical economic and military center of MENA.  
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The Handover - An FP Slideshow | Foreign Policy - 0 views

  • Tuesday marked a milestone for the 12-year-old war in Afghanistan, with NATO forces officially handing over responsibility for the country's security to Afghan government forces. Since 2010, when President Barack Obama accelerated training as part of his rapid surge of forces into the country, the Afghan National Army has grown from around 100,000 members to 195,000. But it still faces a number of challenges, including a desertion rate so high that it needs 50,000 new recruits every year to replace those who leave). In December 2012, a Pentagon report determined that only one of the Afghan military's 23 brigades was able to operate effectively without NATO support. Now, Afghan troops will have to do just that; except in rare cases, they will no longer be able to rely on the support of U.S. warplanes, medical evacuation helicopters, or ground troops.
  • Tuesday marked a milestone for the 12-year-old war in Afghanistan, with NATO forces officially handing over responsibility for the country's security to Afghan government forces. Since 2010, when President Barack Obama accelerated training as part of his rapid surge of forces into the country, the Afghan National Army has grown from around 100,000 members to 195,000. But it still faces a number of challenges, including a desertion rate so high that it needs 50,000 new recruits every year to replace those who leave). In December 2012, a Pentagon report determined that only one of the Afghan military's 23 brigades was able to operate effectively without NATO support. Now, Afghan troops will have to do just that; except in rare cases, they will no longer be able to rely on the support of U.S. warplanes, medical evacuation helicopters, or ground troops. Here's a look back at the long preparation for this week's big handover. An Afghan National Army soldier assigned to the Mobile Strike Force Kandak fires an RPG-7 rocket-propelled grenade launcher during a live-fire exercise supervised by Marines Team on Camp Shorabak, Helmand province, Afghanistan on May 20, 2013.
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    Here in one paragraph are a lot of the reasons two of Obama's claims about U.S. plans in Afghanistan cannot both be true: [i] all U.S. -and NATO combat troops will be withdrawn from Afghanistan by the end of 2014; and [ii] a fairly large contingent of U.S. non-combat troops will remain on U.S. bases in Afghanistan to advise, train, and support the Karzai government's defense forces.  1. The "surge" didn't work even though Obama sent more troops than the military had requested. Even at the peak of U.S. forces in that country, the U.S. military had been beaten back into enclaves by the Taliban. Nonetheless, Obama has  continued to draw down U.S. forces there. NATO allies have been pulling up their tent pegs too. 2. The Afghan government forces are utterly incapable of holding out against the Taliban without strong NATO backing that Obama says is ending. 3. Therefore, a small non-combatant U.S. force left behind after 2014 would be virtually defenseless if left behind. There seems to be no question that U.S. involvement in Afghanistan is winding down steadily. And Obama isn't dumb enough to have a few thousand U.S. troops stay behind to be slaughtered. So his "stay behind" claims are a bluff. The Taliban can read those tea leaves at least as well as I can. This is Vietnam War Redux, also a repeat of the Soviet retreat from Afghanistan. Obama has no credible stick to wield in negotiations with the Taliban. Therefore, the negotiations are either a sham or Obama has to offer the Taliban a carrot of suitable size. The Taliban has no incentive to participate in a sham; they've won their war and the U.S. departure is imminent. Therefore, we need consider what carrot Obama might offer the Taliban. A better royalty agreement on the sidetracked Trans-Afghanistan Pipeline that would supply India with natural gas? .  That doesn't seem enough.  But a consortium of western investors willing to pay royalties t
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Israel decries US 'knife in back' over Palestinian govt - Yahoo News - 0 views

  • Washington's support for a new Palestinian government backed by Israel's Islamist foe Hamas, has left the Jewish state feeling betrayed, triggering a new crisis with its closest ally. Several Israeli ministers expressed public anger on Tuesday after the US State Department said it was willing to work with the new Palestinian unity government put together by the West Bank leadership and Gaza's Hamas rulers. Technocratic in nature, the new government was sworn in on Monday in front of president Mahmud Abbas, with Washington offering its backing several hours later.
  • Speaking to reporters on Monday, State Department spokeswoman Jen Psaki said the new cabinet would be judged "by its actions.""At this point, it appears that president Abbas has formed an interim technocratic government that does not include ministers affiliated with Hamas," she said. "With what we know now, we will work with this government."
  • The US endorsement was viewed as a major blow for Israeli Prime Minister Benjamin Netanyahu, who had on Sunday urged the international community not to rush into recognising the new government, which he said would only "strengthen terror."
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  • "Unfortunately, American naivety has broken all records," said Communications Minister Gilad Erdan, a cabinet hardliner who is close to Netanyahu."Collaborating with Hamas, which is defined as a terror organisation in the United States, is simply unthinkable. "US capitulation to Palestinian tactics badly damages the chance of ever returning to negotiations and will cause Israel to take unilateral steps to defend its citizens from the government of terror which Abu Mazen (Abbas) has set up." Public radio said Netanyahu was feeling "betrayed and deceived," particularly as he had assured his security cabinet that US Secretary of State John Kerry had promised him Washington would not recognise the new government immediately.
  • "And it wasn't immediate -- it was five hours later that this recognition took place," the radio noted ironically. A senior political official quoted by the Israel Hayom freesheet, widely regarded as Netanyahu's mouthpiece, said the US move was "like a knife in the back." - 'Answer with annexation' - Israeli commentators said the Palestinians had chalked up a "major success" in driving a new wedge between Israel and its US ally.
  • With the peace process in tatters, hardliners within Netanyahu's rightwing coalition have been pushing for Israel to take unilateral steps such as the annexation of the main Jewish settlement blocs in the occupied West Bank.
  • The security cabinet agreed on Monday to set up a team to examine the annexation option, but Yediot Aharonot commentator Shimon Shiffer said the move was a sop to Bennett and other hardliners rather than a serious policy change.
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    What's remarkable here is that Obama has apparently ratcheted down his fear of the Israel Lobby. But it's not as though Mr. Netanyahu was not warned that the world would see Israel as responsible if it blew up the Kerry-brokered negotiation between Israel and Palestine. Israel did blow it up by not delivering the last shipment of Palestinian prisoners required by the pre-negotiation agreement, attempting to gain further concessions using their release as leverage.  Palestine responded by joining a large number of U.N. treaty organizations and was thus recognized by most nations on the planet as a nation: a critically important move, because it is recognition by other nations as a nation that qualifies Palestine as a full-fledged U.N. member rather than an observer state, an application Palestine can now make at the time of its choosing. That is also important because Palestine is now positioned to join the Rome Convention that created the International Criminal Court, providing Palestine with legal standing to file war crime charges against high Israeli officials that would then obligate the Court to investigate. Palestine is holding back on that move, using it as bargaining leverage on the world stage.   Palestine also responded by forming a coalition "unity" government with Hamas, the political party that nominally rules the Gaza strip, the world's largest open-air concentration camp. At Israel's request, the U.S. had several years ago designated Hamas as a terrorist organization. But that was a purely political move. It seems that the political situation has changed. Obama is pivoting out of the Mideast as he performs his ballyhooed "pivot to Asia," which is actually a pivot to contain Russia that isn't working and a pivot to subjugate Africa and its huge store of untapped natural resources, including lots of oil. Blocking China's economic deals in Africa with military force seems to be the current top concern in the White House. Israel was already a pari
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Caught Red-Handed » CounterPunch: Tells the Facts, Names the Names - 0 views

  • “In the latest debacle for the US State Department and the Obama Administration, US Assistant Secretary of State Victoria Nuland was caught on tape micro-managing Ukraine opposition party strategies with US Ambassador to Ukraine, Geoffrey Pyatt. That the Ukraine regime-change operation is to some degree being directed from Washington can no longer be denied….The taped conversation demonstrates in clear detail that while Secretary of State John Kerry decries any foreign meddling in Ukraine’s internal affairs, his State Department is virtually managing the entire process.” – Daniel McAdams, “‘F**k the EU’: Tape Reveals US Runs Ukraine Opposition“, Ron Paul Institute Washington is at it again, up to its old tricks. You’d think that after the Afghanistan and Iraq fiascos someone on the policymaking team would tell the fantasists to dial-it-down a bit. But, no. The Obama claque is just as eager to try their hand at regime change as their predecessors, the Bushies. This time the bullseye is on Ukraine, the home of the failed Orange Revolution, where US NGOs fomented a populist coup that brought down the government and paved the way for years of social instability, economic hardship and, eventually, a stronger alliance with Moscow. That sure worked out well, didn’t it? One can only wonder what Obama has in mind for an encore.
  • Let’s cut to the chase: The US still clings to the idea that it can dominate the world with its ham-fisted military (that hasn’t won a war in 60 years) its scandalized Intel agencies, its comical Rambo-style “Special Ops” teams, and its oh-so-brilliant global strategists who think the days of the nation-state will soon be over hastening the onset of the glorious New World Order. Right. Ukraine is a critical part of that pipe dream, er, strategy which is why the US media puts demonstrations in Kiev in the headlines while similar protests in the US are consigned to the back pages just below the dog food ads. In any event, the crisis is likely to intensify in the months ahead as Washington engages in a no-holds-barred tug-o-war with Moscow over the future of civilization.
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Asia Times Online :: The new Great (Threat) Game in Eurasia - 0 views

  • In Ukraine, the West supported an unconstitutional putsch against an elected government perpetrated, among others, by fascist/neo-nazi storm troopers (Svoboda, Right Sector) instrumentalized by US intelligence. After a Russian counterpunch, US President Barack Obama proclaimed that any referendum in Crimea would "violate the Ukrainian constitution and violate international law." This is just the latest instance in the serial rape of "international law". The rap sheet is humongous, including; NATO bombing Serbia for 78 days in 1999 to allow Kosovo to secede; the 2003 US invasion and subsequent trillion-dollar occupation and civil war creation in Iraq; NATO/AFRICOM bombing Libya in 2011 invoking <a href='http://asianmedia.com/GAAN/www/delivery/ck.php?n=a9473bc7&cb=%n' target='_blank'><img src='http://asianmedia.com/GAAN/www/delivery/avw.php?zoneid=36&cb=%n&n=a9473bc7&ct0=%c' border='0' alt='' ></a> R2P ("responsibility to protect") as a cover to provoking regime change; US investment in the secession of oil-wealthy South Sudan, so China has to deal with an extra geopolitical headache; and US investment in perennial civil war in Syria.
  • Yet Moscow still (foolishly?) believes international law should be respected - presenting to the UN Security Council classified information on all Western intel/psy-ops moves leading to the coup in Kiev, including "training" provided by Poland and Lithuania, not to mention Turkish intelligence involvement in setting up a second coup in Crimea. Russian diplomats called for an unbiased international investigation. That will never happen; Washington's narrative would be completely debunked. Thus a US veto at the UN. Russian Foreign Minister Sergei Lavrov also called for the Organization for Security and Co-operation in Europe to objectively investigate those snipers shooting everyone on sight in Kiev, as revealed by Estonia's foreign minister to EU foreign policy supremo Catherine "I love Yats" Ashton. According to Russia's ambassador to the UN Vitaly Churkin, "a completely different picture would be drawn compared to what is being depicted by American media and, unfortunately, by some American and European politicians." Needless to say, there will be no investigation.
  • Everyone remembers the "good Taliban", with which the US could negotiate in Afghanistan. Then came the "good al-Qaeda", jihadis the US could support in Syria. Now come the "good neo-nazis", with which the West can do business in Kiev. Soon there will be "the good jihadis supporting neo-nazis", who may be deployed to advance US/NATO and anti-Russian designs in Crimea and beyond. After all, Obama mentor Dr Zbigniew "The Grand Chessboard" Brzezinski is the godfather of good jihadis, fully weaponized to fight the former Soviet Union in Afghanistan. As facts on the ground go, neo-nazis are definitely back as good guys. For the first time since the end of World War II, fascists and neo-nazis are at the helm of a European nation (although Ukraine most of all should be characterized as the key swing nation in Eurasia). Few in the West seem to have noticed it.
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  • The cast of characters include Ukrainian interim defense minister and former student at the Pentagon Ihor Tenyukh; deputy prime minister for economic affairs and Svoboda ideologue Oleksandr Sych; agro-oligarch minister of agriculture Ihor Svaika (Monsanto, after all, needs a chief enforcer); National Security Council chief and Maidan commander of Right Sector neo-nazis Andry Parubiy; and deputy National Security Council chief Dmytro Yarosh, the founder Right Sector. Not to mention Svoboda leader Oleh Tyanhybok, a close pal of John McCain and Victoria "F**k the EU" Nuland, and active proponent of an Ukraine free from the "Muscovite-Jewish mafia." As the Kremlin refuses to deal with this bunch and the upcoming March 16 referendum in Crimea is practically a done deal, Team "Yats" is fully legitimized, with honors, by Team Obama, leader included, in Washington. To quote Lenin, what is to be done? A close reading of President Putin's moves would suggest an answer: nothing. As in just waiting, while outsourcing the immediate future of a spectacularly bankrupt Ukraine to the EU. The EU is impotent to rescue even the Club Med countries. Inevitably, sooner or later, threat of sanctions or not, it will come crawling back to Moscow seeking "concessions", so Russia may also foot the bill.
  • Meanwhile, the New Great (Threat) Game in Eurasia advances unabated. Moscow would willingly compromise on a neutral Ukraine - even with neo-nazis in power in Kiev. But an Ukraine attached to NATO is an absolute red line. By the way, NATO is "monitoring" Ukraine with AWACS deployed in Polish and Romanian airspace. So as the much lauded "reset" between the Kremlin and the Obama administration is for all practical purposes six feet under (with no Hollywood-style second coming in the cards), what's left is the dangerous threat game. Deployed not only by the Empire, but also by the minions. That monster collection of Magritte-style faceless bureaucrats at the European Commission (EU), following on the non-stop threat of EU sanctions, has decided to delay a decision on whether Gazprom may sell more gas through the OPAL pipeline in Germany, and also delay negotiations on the legal status of South Stream, the pipeline under the Black Sea which should become operational in 2015.
  • As if the EU had any feasible Plan B to escape its dependency on Russian gas (not to mention eschew the very profitable financial game played between key European capitals and Moscow). What are they do, import gas on Qatar Airways flights? Buy LNG from the US - something that will not be feasible in years to come? The fact is the minute a gas war is on, if it ever comes down to it, the EU will be under immense pressure by a host of member-nations to keep (and even extend) its Russian gas fix - with or without "our (neo-nazi) bastards" in power in Kiev. Brussels knows it. And most of all, Vlad the Hammer knows it.
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    Pepe Escobar, again.
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Revealed: How the Nsa Targets Italy - 0 views

  • A special unit operating under cover and protected by diplomatic immunity, assigned to a very sensitive mission: to spy on the communication of the Italian leadership. That is what top secret documents leaked by Edward Snowden and published in Italy exclusively by l'Espresso in collaboration with "la Repubblica" reveal. A file mentions the "Special Collection Service " (SCS) sites in Rome and in Milan, the very same service which, according to the German weekly "Der Spiegel ", spied on the mobile phone of the German Chancellor, Angela Merkel. "Special Collection Sites", reads the file published today by l'Espresso, "provide considerable perishable intelligence on leadership communications largely facilitated by site presence within a national capital". These documents are very important because they contradict recent statements by the Italian Prime Minister reassuring the Italian Parliament. Speaking to the Chamber of Deputies four weeks ago, Enrico Letta said: "Based on the analysis conducted by our intelligence services and our international contacts, we are not aware that the security of the communications of the Italian government and embassies has been compromised, nor are we aware that the privacy of Italian citizens has been compromised". These top secret documents tell a different story, however.
  • The Special Collection Service is likely one of the most sensitive units in U.S. intelligence. The service deploys teams under diplomatic cover, operating in US embassies around the world to control friendly and enemy governments. The top secret NSA document examined by l'Espresso reveals that "in 1988 [SCS] had 88 sites, our peak". The SCS is assigned to a special mission: monitoring the communications of the political, and likely economical, leaders of host nations. For this reason, SCS teams operate within the heart of power: in embassies and consulates, working in close collaboration with the CIA. Also in Rome, in the US embassy located in via Veneto, from those very same roofs which witnessed the Dolce Vita. Snowden's files reveal that, at least until 2010, the Special Collection Service maintained two sites in Italy: one in Rome, a base staffed with agents, and one in Milan, the capital of the Italian economy where, according to a file dated 2010 and originally published in Der Spiegel, the SCS would run an unmanned site. Two sites in a relatively small country like Italy is unusual: only in Germany -- a prime target for NSA in Europe -- does SCS maintain two bases.
  • NSA's mass spying activities did not target our leadership and diplomacy alone, but it possibly also targeted millions of Italian citizens. A file on the top secret programme "Boundless Informant" that is labeled "Italy" reveals that between December 10, 2012 and January 9, 2013, the NSA collected the metadata for 45.893.570 telephone calls. Estimates close to this figure had already circulated, but now the actual document indicates the penetration of this monitoring. All of the metadata gathered in our country between December 10^th and January 9^th 2013 as reflected on this slide relate to phone communication, unlike the slides published in Germany and France, where internet communication metadata were targeted as well.
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  • The Snowden file examined by l'Espresso reveals that the collection of phone metadata in Italy between December 10, 2012 and January 9, 2013 reached over four million metadata per day during the period of political crisis that culminated in the resignation of the Mario Monti government.
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The obscure legal system that lets corporations sue countries | Claire Provost and Matt... - 0 views

  • Every year on 15 September, thousands of Salvadorans celebrate the date when much of Central America gained independence from Spain. Fireworks are set off and marching bands parade through villages across the country. But, last year, in the town of San Isidro, in Cabañas, the festivities had a markedly different tone. Hundreds had gathered to protest against the mine. Gold mines often use cyanide to separate gold from ore, and widespread concern over already severe water contamination in El Salvador has helped fuel a powerful movement determined to keep the country’s minerals in the ground. In the central square, colourful banners were strung up, calling on OceanaGold to drop its case against the country and leave the area. Many were adorned with the slogan, “No a la mineria, Si a la vida” (No to mining, Yes to life). On the same day, in Washington DC, Parada gathered his notes and shuffled into a suite of nondescript meeting rooms in the World Bank’s J building, across the street from its main headquarters on Pennsylvania Avenue. This is the International Centre for the Settlement of Investment Disputes (ICSID): the primary institution for handling the cases that companies file against sovereign states. (The ICSID is not the sole venue for such cases; there are similar forums in London, Paris, Hong Kong and the Hague, among others.) The date of the hearing was not a coincidence, Parada said. The case has been framed in El Salvador as a test of the country’s sovereignty in the 21st century, and he suggested that it should be heard on Independence Day. “The ultimate question in this case,” he said, “is whether a foreign investor can force a government to change its laws to please the investor as opposed to the investor complying with the laws they find in the country.”
  • Most international investment treaties and free-trade deals grant foreign investors the right to activate this system, known as investor-state dispute settlement (ISDS), if they want to challenge government decisions affecting their investments. In Europe, this system has become a sticking point in negotiations over the controversial Transatlantic Trade and Investment Partnership (TTIP) deal proposed between the European Union and the US, which would massively extend its scope and power and make it harder to challenge in the future. Both France and Germany have said that they want access to investor-state dispute settlement removed from the TTIP treaty currently under discussion. Investors have used this system not only to sue for compensation for alleged expropriation of land and factories, but also over a huge range of government measures, including environmental and social regulations, which they say infringe on their rights. Multinationals have sued to recover money they have already invested, but also for alleged lost profits and “expected future profits”. The number of suits filed against countries at the ICSID is now around 500 – and that figure is growing at an average rate of one case a week. The sums awarded in damages are so vast that investment funds have taken notice: corporations’ claims against states are now seen as assets that can be invested in or used as leverage to secure multimillion-dollar loans. Increasingly, companies are using the threat of a lawsuit at the ICSID to exert pressure on governments not to challenge investors’ actions.
  • “I had absolutely no idea this was coming,” Parada said. Sitting in a glass-walled meeting room in his offices, at the law firm Foley Hoag, he paused, searching for the right word to describe what has happened in his field. “Rogue,” he decided, finally. “I think the investor-state arbitration system was created with good intentions, but in practice it has gone completely rogue.”
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  • The quiet village of Moorburg in Germany lies just across the river from Hamburg. Past the 16th-century church and meadows rich with wildflowers, two huge chimneys spew a steady stream of thick, grey smoke into the sky. This is Kraftwerk Moorburg, a new coal-fired power plant – the village’s controversial next-door neighbour. In 2009, it was the subject of a €1.4bn investor-state case filed by Vattenfall, the Swedish energy giant, against the Federal Republic of Germany. It is a prime example of how this powerful international legal system, built to protect foreign investors in developing countries, is now being used to challenge the actions of European governments as well. Since the 1980s, German investors have sued dozens of countries, including Ghana, Ukraine and the Philippines, at the World Bank’s Centre in Washington DC. But with the Vattenfall case, Germany found itself in the dock for the first time. The irony was not lost on those who considered Germany to be the grandfather of investor-state arbitration: it was a group of German businessmen, in the late 1950s, who first conceived of a way to protect their overseas investments as a wave of developing countries gained independence from European colonial powers. Led by Deutsche Bank chairman Hermann Abs, they called their proposal an “international magna carta” for private investors.
  • In the 1960s, the idea was taken up by the World Bank, which said that such a system could help the world’s poorer countries attract foreign capital. “I am convinced,” the World Bank president George Woods said at the time, “that those … who adopt as their national policy a welcome [environment] for international investment – and that means, to mince no words about it, giving foreign investors a fair opportunity to make attractive profits – will achieve their development objectives more rapidly than those who do not.” At the World Bank’s 1964 annual meeting in Tokyo, it approved a resolution to set up a mechanism for handling investor-state cases. The first line of the ICSID Convention’s preamble sets out its goal as “international cooperation for economic development”. There was sharp opposition to this system from its inception, with a bloc of developing countries warning that it would undermine their sovereignty. A group of 21 countries – almost every Latin American country, plus Iraq and the Philippines – voted against the proposal in Tokyo. But the World Bank moved ahead regardless. Andreas Lowenfeld, an American legal academic who was involved in some of these early discussions, later remarked: “I believe this was the first time that a major resolution of the World Bank had been pressed forward with so much opposition.”
  • now governments are discovering, too late, the true price of that confidence. The Kraftwerk Moorburg plant was controversial long before the case was filed. For years, local residents and environmental groups objected to its construction, amid growing concern over climate change and the impact the project would have on the Elbe river. In 2008, Vattenfall was granted a water permit for its Moorburg project, but, in response to local pressure, local authorities imposed strict environmental conditions to limit the utility’s water usage and its impact on fish. Vattenfall sued Hamburg in the local courts. But, as a foreign investor, it was also able to file a case at the ICSID. These environmental measures, it said, were so strict that they constituted a violation of its rights as guaranteed by the Energy Charter Treaty, a multilateral investment agreement signed by more than 50 countries, including Sweden and Germany. It claimed that the environmental conditions placed on its permit were so severe that they made the plant uneconomical and constituted acts of indirect expropriation.
  • With the rapid growth in these treaties – today there are more than 3,000 in force – a specialist industry has developed in advising companies how best to exploit treaties that give investors access to the dispute resolution system, and how to structure their businesses to benefit from the different protections on offer. It is a lucrative sector: legal fees alone average $8m per case, but they have exceeded $30m in some disputes; arbitrators’ fees at start at $3,000 per day, plus expenses.
  • Vattenfall v Germany ended in a settlement in 2011, after the company won its case in the local court and received a new water permit for its Moorburg plant – which significantly lowered the environmental standards that had originally been imposed, according to legal experts, allowing the plant to use more water from the river and weakening measures to protect fish. The European Commission has now stepped in, taking Germany to the EU Court of Justice, saying its authorisation of the Moorburg coal plant violated EU environmental law by not doing more to reduce the risk to protected fish species, including salmon, which pass near the plant while migrating from the North Sea. A year after the Moorburg case closed, Vattenfall filed another claim against Germany, this time over the federal government’s decision to phase out nuclear power. This second suit – for which very little information is available in the public domain, despite reports that the company is seeking €4.7bn from German taxpayers – is still ongoing. Roughly one third of all concluded cases filed at the ICSID are recorded as ending in “settlements”, which – as the Moorburg dispute shows – can be very profitable for investors, though their terms are rarely fully disclosed.
  • “It was a total surprise for us,” the local Green party leader Jens Kerstan laughed, in a meeting at his sunny office in Hamburg last year. “As far as I knew, there were some [treaties] to protect German companies in the [developing] world or in dictatorships, but that a European company can sue Germany, that was totally a surprise to me.”
  • While a tribunal cannot force a country to change its laws, or give a company a permit, the risk of massive damages may in some cases be enough to persuade a government to reconsider its actions. The possibility of arbitration proceedings can be used to encourage states to enter into meaningful settlement negotiations.
  • A small number of countries are now attempting to extricate themselves from the bonds of the investor-state dispute system. One of these is Bolivia, where thousands of people took to the streets of the country’s third-largest city, Cochabamba, in 2000, to protest against a dramatic hike in water rates by a private company owned by Bechtel, the US civil engineering firm. During the demonstrations, the Bolivian government stepped in and terminated the company’s concession. The company then filed a $50m suit against Bolivia at the ICSID. In 2006, following a campaign calling for the case to be thrown out, the company agreed to accept a token payment of less than $1. After this expensive case, Bolivia cancelled the international agreements it had signed with other states giving their investors access to these tribunals. But getting out of this system is not easily done. Most of these international agreements have sunset clauses, under which their provisions remain in force for a further 10 or even 20 years, even if the treaties themselves are cancelled.
  • There are now thousands of international investment agreements and free-trade acts, signed by states, which give foreign companies access to the investor-state dispute system, if they decide to challenge government decisions. Disputes are typically heard by panels of three arbitrators; one selected by each side, and the third agreed upon by both parties. Rulings are made by majority vote, and decisions are final and binding. There is no appeals process – only an annulment option that can be used on very limited grounds. If states do not pay up after the decision, their assets are subject to seizure in almost every country in the world (the company can apply to local courts for an enforcement order).
  • While there is no equivalent of legal aid for states trying to defend themselves against these suits, corporations have access to a growing group of third-party financiers who are willing to fund their cases against states, usually in exchange for a cut of any eventual award.
  • Increasingly, these suits are becoming valuable even before claims are settled. After Rurelec filed suit against Bolivia, it took its case to the market and secured a multimillion-dollar corporate loan, using its dispute with Bolivia as collateral, so that it could expand its business. Over the last 10 years, and particularly since the global financial crisis, a growing number of specialised investment funds have moved to raise money through these cases, treating companies’ multimillion-dollar claims against states as a new “asset class”.
  • El Salvador has already spent more than $12m defending itself against Pacific Rim, but even if it succeeds in beating the company’s $284m claim, it may never recover these costs. For years Salvadoran protest groups have been calling on the World Bank to initiate an open and public review of ICSID. To date, no such study has been carried out. In recent years, a number of ideas have been mooted to reform the international investor-state dispute system – to adopt a “loser pays” approach to costs, for example, or to increase transparency. The solution may lie in creating an appeals system, so that controversial judgments can be revisited.
  • Brazil has never signed up to this system – it has not entered into a single treaty with these investor-state dispute provisions – and yet it has had no trouble attracting foreign investment.
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    "Luis Parada's office is just four blocks from the White House, in the heart of K Street, Washington's lobbying row - a stretch of steel and glass buildings once dubbed the "road to riches", when influence-peddling became an American growth industry. Parada, a soft-spoken 55-year-old from El Salvador, is one of a handful of lawyers in the world who specialise in defending sovereign states against lawsuits lodged by multinational corporations. He is the lawyer for the defence in an obscure but increasingly powerful field of international law - where foreign investors can sue governments in a network of tribunals for billions of dollars. Fifteen years ago, Parada's work was a minor niche even within the legal business. But since 2000, hundreds of foreign investors have sued more than half of the world's countries, claiming damages for a wide range of government actions that they say have threatened their profits. In 2006, Ecuador cancelled an oil-exploration contract with Houston-based Occidental Petroleum; in 2012, after Occidental filed a suit before an international investment tribunal, Ecuador was ordered to pay a record $1.8bn - roughly equal to the country's health budget for a year. (Ecuador has logged a request for the decision to be annulled.) Parada's first case was defending Argentina in the late 1990s against the French conglomerate Vivendi, which sued after the Argentine province of Tucuman stepped in to limit the price it charged people for water and wastewater services. Argentina eventually lost, and was ordered to pay the company more than $100m. Now, in his most high-profile case yet, Parada is part of the team defending El Salvador as it tries to fend off a multimillion-dollar suit lodged by a multinational mining company after the tiny Central American country refused to allow it to dig for gold."
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