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Paul Merrell

Loopholes, Filing Failures, and Lax Enforcement: How the Foreign Agents Registration Ac... - 0 views

  • Why This Matters The Foreign Agents Registration Act requires American lobbyists working on behalf of foreign clients to disclose significantly more information about their activities than what is required of domestic lobbyists. This includes the actual documents used to influence policy makers, called informational materials. These materials include draft legislation, speeches, press releases and more, all created to influence U.S. policy. But the lobbyists do not always follow the letter of the law and enforcement by the Justice Department has been lax in recent years. Furthermore, the law itself seems to have loopholes that make enforcement difficult if not impossible. The Foreign Agents Registration Act is intended to bring transparency into the world of foreign lobbying. But when American lobbyists working on behalf of foreign interests fail to follow the law, or the Justice Department fails to enforce it, the American people are left in the dark.
  • Why This Matters The Foreign Agents Registration Act requires American lobbyists working on behalf of foreign clients to disclose significantly more information about their activities than what is required of domestic lobbyists. This includes the actual documents used to influence policy makers, called informational materials. These materials include draft legislation, speeches, press releases and more, all created to influence U.S. policy. But the lobbyists do not always follow the letter of the law and enforcement by the Justice Department has been lax in recent years. Furthermore, the law itself seems to have loopholes that make enforcement difficult if not impossible. The Foreign Agents Registration Act is intended to bring transparency into the world of foreign lobbying. But when American lobbyists working on behalf of foreign interests fail to follow the law, or the Justice Department fails to enforce it, the American people are left in the dark.
  • Executive Summary The Foreign Agents Registration Act (FARA) requires that all American citizens working to influence U.S. policy on behalf of foreign governments register with the Department of Justice and to disclose information on any and all political activity in which they engaged for foreign clients. This includes filing, within 48 hours, any informational materials disseminated to two or more people.
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  • Table of Contents Executive SummaryIntroductionBackgroundWhat the Foreign Influence Database ShowsEgypt: A Case Study Of Foreign InfluenceSame-Day ContributionsSystemic Foreign InfluenceQuid Pro Quo or Coincidence?Foreign Money and the LawLax Compliance with and Enforcement of FARAEnforcementConclusionRecommendationsEndnotes
  • The law requires lobbyists for foreign interests to plainly and conspicuously identify themselves as such in any materials distributed in the course of their lobbying—for example, emails, other correspondence, or publications. We found that many documents filed with the Justice Department lack this identification statement; furthermore, many lobbyists admitted that they did not comply with this requirement. More than half (51 percent) of the registrants we examined in a sample from 2010 checked a box on a the semi-annual Justice Department questionnaire saying they had filed informational materials, and checked another box saying they had not met the legal requirement that they identify themselves in those materials as working on behalf of foreign interests. Toby Moffett, a former Member of Congress from Connecticut who is now Chairman of the Moffett Group and one of its registered lobbyists, told POGO that “Around the edges there’s a lot of loosey-goosey stuff going on. People representing foreign interests and not reporting.”[4] But even when lobbyists do report to the Justice Department, the information they provide is not easily accessible to the public. Astonishingly, informational materials are not available online, despite the fact that the Justice Department has an electronic filing system. Instead, these documents are kept in an office at the Justice Department that is only open for four hours each weekday. Hard copies of the documents are kept in folders that are often disorganized and susceptible to misfiling. This archaic system undermines the intended transparency of the law.
  • We set out to determine the extent to which lobbyists for foreign interests were filing lobbying materials at the Justice Department within the required time frame. Based on a review of filings made in 2012, in those instances where it was possible to answer the question, POGO estimates that almost half—46 percent—were filed late. Fifteen percent were filed more than 30 business days after they were distributed, and 12 percent were filed more than 100 business days after they were distributed. In many instances, the Justice Department would be hard pressed to enforce the filing deadline. Based on the records the Department maintains to enforce the law, we found that in more than a quarter (26 percent) of the 2012 filings, it was impossible to determine whether the lobbyists complied. For example, in many cases, the records did not show when the lobbyists disseminated the materials to the targets of their lobbying. In a glaring omission, the law does not require lobbyists to provide that information. Without it, there may be no way for the government or the public to know whether lobbying materials were filed on time.
  • Though federal law bars foreign money from U.S. political campaigns, there appears to be a gray area in the law that can let in such money indirectly. POGO found many instances in which members of lobbying firms made political contributions to Members of Congress on the same day that those firms were lobbying the Members of Congress or their legislative staffs on behalf of foreign clients.[1] Lobbyists who fail to comply with certain FARA requirements may have little to fear from the Justice Department. “The cornerstone of the Registration Unit’s enforcement efforts is encouraging voluntary compliance,” a Justice Department website says.[2] When lobbyists do not voluntarily comply, the Justice Department rarely uses one of the key tools at its disposal to enforce the law—seeking a court injunction. A representative of the Department’s FARA unit told POGO: “While the FARA statute and regulations authorize the pursuit of formal legal proceedings, such as injunctive remedy options, the FARA Unit [has] not pursued injunctive remedy options recently and has instead utilized other mechanisms to achieve compliance.”[3] It appears that some registered foreign agents have been distributing materials but not filing them with the Justice Department. It’s unclear the extent to which that illustrates a lack of compliance with the law or loopholes in the law. In the process of researching this report, POGO noticed that many more lobbyists were registering as foreign agents than had filed informational materials that we could locate at the FARA office. To determine what was happening, we looked at a sampling of questionnaires that the Justice Department requires registered agents to complete every six months. Some checked one box indicating they had distributed materials and another box stating they did not file them with the FARA office.
  • The Project On Government Oversight examined thousands of these materials spanning four years, as well as additional public records related to the Justice Department’s oversight of lobbyists for foreign interests. We found that lobbyists for foreign interests have routinely failed to comply with the law—a failure that prevents journalists and watchdogs from scrutinizing the lobbying activities while foreign interests are trying to influence U.S. policy. We found a pattern of lax enforcement of FARA requirements by the Justice Department. We found that the Justice Department office responsible for administering the law is a record-keeping mess. And we found loopholes in the law that often makes it difficult if not impossible for the government to police compliance or to discipline lobbyists who fail to comply. Here are some highlights of our investigation:
  • When lobbyists for foreign interests do not follow the law, when the U.S. government fails to enforce it, and when the Justice Department makes it difficult for the American people to access records to which they are legally entitled, the public is left in the dark. To bring more transparency to this opaque realm, POGO has made four years of informational materials available for the first time online with our Foreign Influence Database, allowing the public to see how lobbyists attempt to influence American policies on behalf of their foreign clients.
  • With the release of the Foreign Influence Database, the Project On Government Oversight (POGO) is making years of documents from this key set of FARA filings electronically available for the first time. The materials were previously only available in hard copy at the FARA Registration Unit in Washington, DC, which is only open to the public from 11am to 3pm on weekdays.[12] In this digital age it is surprising that these materials could not be read online and are instead stored in file folders, where they are disorganized and susceptible to misfiling. Even those that were electronically filed by the registrants are not available to the public in an electronic format. POGO’s database includes informational materials filed in 2009, 2010, 2011, and 2012.[13]
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    POGO does thorough work and doesn't let up until it gets results. Forcing DoJ to puts its foreign agents registration materials online should be a fairly trivial battle. The real war, though, will be forcing better enforcement. The new database is at http://www.pogo.org/tools-and-data/foreign-influence-database/ I punched up the word "Israel" and came up with 113 documents in the search results. Each search hit lists the name of the nation involved that the lobbying was done for. Of those 113 document hits, only two were for the nation of Israel, both for its Ministry of Tourism. The rest were by other nations who had mentioned Israel in their lobbying materials.  Now that is fairly incredible, given that Israel outright controls Congress when it comes to Middle East policy.  The last administration to attempt to do something about Israeli lobbyists not registering was the the Kennedy Administration. The result was that the major Israeli lobbying group disbanded and was promptly reformed under a new corporate charter and name. That was the very last attempt at enforcing the Foreign Agents Registration Act against Israel's lobbyists in the U.S., despite the fact that the reformed group, AIPAC, has even been caught more than once being passed highly classified U.S. documents by double agents working inside the U.S. military establishment. The leakers went to prison but the AIPACers were never prosecuted. AIPAC rules.  
Gary Edwards

Michael Boskin: The Anatomy of Government Failure - WSJ.com - 0 views

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    Good summary of a very important issue in this election - the role of the government in a "capitalist" free market economy (cough cough).  If you have trouble loading this locked WSJ article, the solution is simple.  Paste "Michael Boskin: The Anatomy of Government Failure" into a google search.  The article with link will show up as "online.wsj.com/...../  Just click the headline and read.  The google paste gives you a free pass to WSJ articles.  ........ Great cartoon image with this post :)  http://goo.gl/7QQZh excerpts: In a market economy, price signals automatically steer society's scarce resources to the uses people value most, and at minimum cost. This is Adam Smith's famous Invisible Hand. But sometimes markets aren't competitive, or they generate effects such as congestion or pollution that are not accounted for in the price system. These "market failures" potentially justify government intervention......... "More generally, the costs of government regulation may be higher than the benefits-the cure may be worse than the disease. Before undertaking a new government intervention or adopting a new rule, instituting a new program or expanding an old one, the problem of "government failure" has to be considered. Government failures include the cronyism and pork that arise from spending and subsidy programs. Helping people experiencing hard times to get back on their feet is proper, but if overdone it may induce dependency. Laws are administered by agencies, from the EPA to banking regulators, with their own bureaucratic incentives-and they are prone to capture by the very interests they are supposed to regulate. Government failures are as pervasive as market failures due to monopoly or externalities, such as pollution, that arise because of ill-defined property rights. The potential for such failures grows as government grows. More government spending or regulation doesn't necessarily lead to better outcomes. If that were true, Washingto
Gary Edwards

A Government Failure, Not a Market Failure - WSJ.com - 0 views

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    Excerpt: After 2000, the national push toward home ownership intensified in three dimensions, leading to a doubling of housing prices in just five years' time. First, the Federal Reserve Board's interest-rate policy drove down the cost of borrowing money to unprecedented lows. Second, a common conviction arose that home ownership should be available even to those who, under prevailing conditions, could not afford it. Finally, private agencies charged with determining the risk and value of securities were exceptionally generous in their assessment of the financial products known as "derivatives" whose collateral resided in the value of thousands of mortgages bundled together. The rating agencies understated the risks from these bundled mortgages by assuming that home prices were simply going to rise forever. When the housing bubble burst in 2006, the damage to the financial system pushed the global economy into the worst contraction since the Great Depression. In the midst of the pain and suffering that have accompanied financial collapse and economic contraction-over $15 trillion in wealth has been lost by American households alone while, to date, more than 6 million job losses have boosted the unemployment rate to 9.4 percent-much of the blame has been placed on unregulated financial markets whose behavior is said to have revealed a terrible flaw in the foundation of capitalism itself. This was a market failure, we are told, and the promise of capitalism has always been that the self-correcting mechanisms built into the system would preclude the possibility of a systemic market failure. But the housing bubble only burst after government subsidies pushed house prices up so fast that marginal buyers could no longer afford to chase prices even higher. A bubble created by rigged financial markets and a government-sponsored obsession with home ownership is not a result of market failure, but rather, a result of bad public policy. The belief that home ownership,
Gary Edwards

The Project To Restore America - 0 views

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    Yes, it's a confusing proposal - but not when compared to what we have now; a financial industry run by "To-Big-To-Fail Banks" able to loot the public treasury at will.  Never to Big to Bail, and taxpayers voted for four more years of looting.  Limited Purpose Banking is based on equity.  Which is quite different from the fractional-reserve-lending model used by the To-Big-Fail Banksters. "The history of banking is a long and sorry record of promises that can't be kept - promises that were either overly optimistic or outright fraudulent. Since banks are leveraged, failing to deliver on their promises leads them to collapse. But unlike standard bankruptcies, bank failures produce enormous economic fallout.   There's a reason. Banks not only market financial products. They also make financial markets. Markets, be they for apples or loans, constitute critical public goods whose provision should not be jeopardized.     Making a market -- getting buyers and sellers to meet at the same time and place always represents a feat of coordination. The main purpose of banks is to effect financial coordination - to bring together borrowers and lenders and investors and savers.     When banks fail, particularly large ones, this coordination breaks down. Moreover, bank failures can be contagious. Any given bank's failure raises the prospect that fraud or very poor judgment was at fault and that other banks are engaged in the same practice. This leads to runs on, actually away from, banks in general. In addition, since banks borrow and lend to one another, the failure of bank A can bring bank B down if A owes money to B.     Worst of all, financial collapse, even by a few major financial players can coordinate non-financial companies as well as households on the belief that times are bad. And when millions of separate firms and tens of millions of households start expecting bad times, they take actions to make bad times happen. Thus, the state of confidence, what Key
Gary Edwards

Revealed: Obama's Immense Shadow Army & Its Shocking Takeover Plan - 1 views

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    Is the ObamaCare train wreck a wreck by design? Another notch in the Bankster belt marking another step in the bankrupting of America? Revealed: Obama's Immense Shadow Army & Its Shocking Takeover Plan October 26, 2013  //  By: Eric Odom  //   The ObamaCare train wreck - it's awful, possibly purposeful, certainly useful for team Obama and its growing army of community activists and organizers. In a previous report, we explored the question, "What if the ObamaCare debacle is really a diversion, using a military term a "feint" - a tactical distraction to draw our attention, our focus and our fire away from the real point of attack on liberty?" Remember that horrible train wreck in Spain not long ago, captured on video? As tragic as it was, watching the crash and its gruesome aftermath was almost irresistible, wasn't it? Well, what if the disastrous rollout of the President's signature legislative achievement - what if this spectacular slow motion ObamaCare train wreck has been and is being allowed to happen so that what's going on around the bend from the fiery crash site gets little attention, from the public, from the media or from Congressional investigators? Think about it, friends. How could Barack Obama and his celebrated team of incredibly proficient, plugged in techies - the team that twice got him elected - be behind the utterly disastrous launch of the ObamaCare online storefront, healthcare.gov - arguably the biggest website failure in history? How could so much money have been spent to produce such a problem-plagued site that apparently was doomed in its developmental confusion? And how to fix this monumental mess, well, there doesn't seem to be any clear plan…other than hope. And now we learn that many, if not most, of the people actually signing up for ObamaCare through the website are enrolling in Medicaid, not signing up for private insurance policies they pay for, but adding their names onto government roll
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    There is no doubt in my mind that corporations (and their Chamber of Commerce boot licking lackys) believe that employer provided healthcare benefits was a HUGE MISTAKE. The key feature of ObamaCare is that of ENDING the HMO-Employee Healthcare profit draining quagmire these corporations somehow stumbled into. (Hint: they traded healthcare benefits for wide open government assisted Globalization - the new world order Merchantilism). IMHO, the insurance companies know full well that the entire HMO-Employee Healthcare bandwagon is going to end. Not because of socialism; because of profit hungry out of control mercantilism. So they are trying to cut the best deal possible with the government. The merchantilist doesn't care that their employees are going to suffer. They only care that this cost and the blame for losing the benefit is moved from their books to the government. Nor does the merchantilist care about protecting our borders. They want cheap labor. Even if the social cost of that cheap labor lands on the government and destroys the nation. That's why the merchantilist and his Bankster financiers support Open Borders. The merchantilist could care less about the trade deficit and the massive transfer of American manufacturing jobs overseas. As long as they can sell their junk back into the USA market without a 33% import tax these bastardos are happy to destroy their country. I wonder whose army and navy will secure their investments when the USA no longer can? Are their private armies enough? Just wondering.
Paul Merrell

Responding to Failure: Reorganizing U.S. Policies in the Middle East | Middle East Poli... - 0 views

  • I want to speak with you today about the Middle East. This is the region where Africa, Asia, and Europe come together. It is also the part of the world where we have been most compellingly reminded that some struggles cannot be won, but there are no struggles that cannot be lost. It is often said that human beings learn little useful from success but can learn a great deal from defeat. If so, the Middle East now offers a remarkably rich menu of foreign-policy failures for Americans to study. • Our four-decade-long diplomatic effort to bring peace to the Holy Land sputtered to an ignominious conclusion a year ago. • Our unconditional political, economic, and military backing of Israel has earned us the enmity of Israel’s enemies even as it has enabled egregiously contemptuous expressions of ingratitude and disrespect for us from Israel itself.
  • • Our attempts to contain the Iranian revolution have instead empowered it. • Our military campaigns to pacify the region have destabilized it, dismantled its states, and ignited ferocious wars of religion among its peoples. • Our efforts to democratize Arab societies have helped to produce anarchy, terrorism, dictatorship, or an indecisive juxtaposition of all three. • In Iraq, Libya, and Syria we have shown that war does not decide who’s right so much as determine who’s left. • Our campaign against terrorism with global reach has multiplied our enemies and continuously expanded their areas of operation. • Our opposition to nuclear proliferation did not prevent Israel from clandestinely developing nuclear weapons and related delivery systems and may not preclude Iran and others from following suit.
  • • At the global level, our policies in the Middle East have damaged our prestige, weakened our alliances, and gained us a reputation for militaristic fecklessness in the conduct of our foreign affairs. They have also distracted us from challenges elsewhere of equal or greater importance to our national interests. That’s quite a record.
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  • One can only measure success or failure by reference to what one is trying achieve. So, in practice, what have U.S. objectives been? Are these objectives still valid? If we’ve failed to advance them, what went wrong? What must we do now to have a better chance of success? Our objectives in the Middle East have not changed much over the course of the past half century or more. We have sought to 1. Gain acceptance and security for a Jewish homeland from the other states and peoples of the region; 2. Ensure the uninterrupted availability of the region’s energy supplies to sustain global and U.S. security and prosperity; 3. Preserve our ability to transit the region so as to be able to project power around the world; 4. Prevent the rise of a regional hegemon or the deployment of weapons of mass destruction that might threaten any or all of these first three objectives; 5. Maximize profitable commerce; and 6. Promote stability while enhancing respect for human rights and progress toward constitutional democracy. Let’s briefly review what’s happened with respect to each of these objectives. I will not mince words.
  • Israel has come to enjoy military supremacy but it remains excluded from most participation in its region’s political, economic, and cultural life. In the 67 years since the Jewish state was proclaimed, Israel has not made a single friend in the Middle East, where it continues to be regarded as an illegitimate legacy of Western imperialism engaged in racist removal of the indigenous population. International support for Israel is down to the United States and a few of the former colonial powers that originally imposed the Zionist project on the Arabs under Sykes-Picot and the related Balfour Declaration. The two-state solution has expired as a physical or political possibility. There is no longer any peace process to distract global attention from Israel’s maltreatment of its captive Arab populations. After years of deference to American diplomacy, the Palestinians are about to challenge the legality of Israel’s cruelties to them in the International Criminal Court and other venues in which Americans have no veto, are not present, or cannot protect the Jewish state from the consequences of its own behavior as we have always been able to do in the past. Israel’s ongoing occupation of the West Bank and siege of Gaza are fueling a drive to boycott its products, disinvest in its companies, and sanction its political and cultural elite. These trends are the very opposite of what the United States has attempted to achieve for Israel.
  • In a stunning demonstration of his country’s most famous renewable resource — chutzpah — Israel’s Prime Minister chose this very moment to make America the main issue in his reelection campaign while simultaneously transforming Israel into a partisan issue in the United States. This is the very opposite of a sound survival strategy for Israel. Uncertainties about their country’s future are leading many Israelis to emigrate, not just to America but to Europe. This should disturb not just Israelis but Americans, if only because of the enormous investment we have made in attempts to gain a secure place for Israel in its region and the world. The Palestinians have been silent about Mr. Netanyahu’s recent political maneuvers. Evidently, they recall Napoleon’s adage that one should never interrupt an enemy when he is making a mistake. This brings me to an awkward but transcendently important issue. Israel was established as a haven from anti-Semitism — Jew hatred — in Europe, a disease of nationalism and Christian culture that culminated in the Holocaust. Israel’s creation was a relief for European Jews but a disaster for the Arabs of Palestine, who were either ethnically cleansed by European Jewish settlers or subjugated, or both.  But the birth of Israel also proved tragic for Jews throughout the Middle East — the Mizrahim. In a nasty irony, the implementation of Zionism in the Holy Land led to the introduction of European-style anti-Semitism — including its classic Christian libels on Jews — to the region, dividing Arab Jews from their Muslim neighbors as never before and compelling them to join European Jews in taking refuge in Israel amidst outrage over the dispossession of Palestinians from their homeland. Now, in a further irony, Israel’s pogroms and other injustices to the Muslim and Christian Arabs over whom it rules are leading not just to a rebirth of anti-Semitism in Europe but to its globalization.
  • The late King `Abdullah of Saudi Arabia engineered a reversal of decades of Arab rejectionism at Beirut in 2002. He brought all Arab countries and later all 57 Muslim countries to agree to normalize relations with Israel if it did a deal — any deal — with the Palestinians that the latter could accept. Israel spurned the offer. Its working assumption seems to be that it does not need peace with its neighbors as long as it can bomb and strafe them. Proceeding on this basis is not just a bad bet, it is one that is dividing Israel from the world, including Jews outside Israel. This does not look like a story with a happy ending. It’s hard to avoid the thought that Zionism is turning out to be bad for the Jews. If so, given the American investment in it, it will also have turned out to be bad for America. The political costs to America of support for Israel are steadily rising. We must find a way to divert Israel from the largely self-engineered isolation into which it is driving itself, while repairing our own increasing international ostracism on issues related to Israel.  
  • Despite Mr. Netanyahu’s recent public hysteria about Iran and his efforts to demonize it, Israel has traditionally seen Iran’s rivalry with the Arabs as a strategic asset. It had a very cooperative relationship with the Shah. Neither Israelis nor Arabs have forgotten the strategic logic that produced Israel's entente with Iran. Israel is very much on Daesh’s list of targets, as is Iran. For now, however, Israel’s main concern is the possible loss of its nuclear monopoly in the Middle East. Many years ago, Israel actually did what it now accuses Iran of planning to do. It clandestinely developed nuclear weapons while denying to us and others that it was doing so. Unlike Iran, Israel has not adhered to the Nuclear Non-Proliferation Treaty or subjected its nuclear facilities to international inspection. It has expressed no interest in proposals for a nuclear-free zone in the Middle East. It sees its ability to bring on nuclear Armageddon as the ultimate guarantee of its existence.
  • To many, Israel now seems to have acquired the obnoxious habit of biting the American hand that has fed it for so long. The Palestinians have despaired of American support for their self-determination. They are reaching out to the international community in ways that deliberately bypass the United States. Random acts of violence herald mayhem in the Holy Land. Daesh has proclaimed the objective of erasing the Sykes-Picot borders and the states within them. It has already expunged the border between Iraq and Syria. It is at work in Lebanon and has set its sights on Jordan, Palestine, and Israel. Lebanon, under Saudi influence, has turned to France rather than America for support. Hezbollah has intervened militarily in Iraq and Syria, both of whose governments are close to Iran. Egypt and Turkey have distanced themselves from the United States as well as from each other. Russia is back as a regional actor and arms supplier. The Gulf Arabs, Egypt, and Turkey now separately intervene in Libya, Syria, and Iraq without reference to American policy or views. Iran is the dominant influence in Iraq, Syria, parts of Lebanon, and now Yemen. It has boots on the ground in Iraq. And now Saudi Arabia seems to be organizing a coalition that will manage its own nuclear deterrence and military balancing of Ir
  • To describe this as out of control is hardly adequate. What are we to do about it? Perhaps we should start by recalling the first law of holes — “when stuck in one, stop digging.” It appears that “don’t just sit there, bomb something” isn’t much of a strategy. When he was asked last summer what our strategy for dealing with Daesh was, President Obama replied, “We don’t yet have one.” He was widely derided for that. He should have been praised for making the novel suggestion that before Washington acts, it should first think through what it hopes to accomplish and how best to do it. Sunzi once observed that “tactics without strategy is the noise before defeat." America’s noisy but strategy-free approach to the Middle East has proven him right. Again the starting point must be what we are trying to accomplish. Strategy is "the discipline of achieving desired ends through the most efficient use of available means" [John Lewis Gaddis].Our desired ends with respect to the Middle East are not in doubt. They have been and remain to gain an accepted and therefore secure place for Israel there; to keep the region's oil and gas coming at reasonable prices; to be able to pass through the area at will; to head off challenges to these interests; to do profitable business in the markets of the Middle East; and to promote stability amidst the expansion of liberty in its countries. Judging by results, we have been doing a lot wrong. Two related problems in our overall approach need correction. They are “enablement” and the creation of “moral hazard.” Both are fall-out from  relationships of codependency.
  • Enablement occurs when one party to a relationship indulges or supports and thereby enables another party’s dysfunctional behavior. A familiar example from ordinary life is giving money to a drunk or a drug addict or ignoring, explaining away, or defending their subsequent self-destructive behavior.  Moral hazard is the condition that obtains when one party is emboldened to take risks it would not otherwise take because it knows another party will shoulder the consequences and bear the costs of failure. The U.S.-Israel relationship has evolved to exemplify codependency. It now embodies both enablement and moral hazard. U.S. support for Israel is unconditional.  Israel has therefore had no need to cultivate relations with others in the Middle East, to declare its borders, or to choose peace over continued expansion into formerly Arab lands. Confidence in U.S. backing enables Israel to do whatever it likes to the Palestinians and its neighbors without having to worry about the consequences. Israel is now a rich country, but the United States continues to subsidize it with cash transfers and other fiscal privileges. The Jewish state is the most powerful country in the Middle East. It can launch attacks on its neighbors, confident that it will be resupplied by the United States. Its use of U.S. weapons in ways that violate both U.S. and international law goes unrebuked. 41 American vetoes in the United Nations Security Council have exempted Israel from censure and international law. We enable it to defy the expressed will of the international community, including, ironically, our own.
  • We Americans are facilitating Israel's indulgence in denial and avoidance of the choices it must make if it is not to jeopardize its long-term existence as a state in the Middle East. The biggest contribution we could now make to Israel's longevity would be to ration our support for it, so as to cause it to rethink and reform its often self-destructive behavior. Such peace as Israel now enjoys with Egypt, Jordan, and the Palestinians is the direct result of tough love of this kind by earlier American administrations. We Americans cannot save Israel from itself, but we can avoid killing it with uncritical kindness. We should support Israel when it makes sense to do so and it needs our support on specific issues, but not otherwise. Israel is placing itself and American interests in jeopardy. We need to discuss how to reverse this dynamic.
  • Moral hazard has also been a major problem in our relationship with our Arab partners. Why should they play an active role in countering the threat to them they perceive from Iran, if they can get America to do this for them? Similarly, why should any Muslim country rearrange its priorities to deal with Muslim renegades like Daesh when it can count on America to act for it? If America thinks it must lead, why not let it do so? But responsible foreign and defense policies begin with self-help, not outsourcing of military risks. The United States has the power-projection and war-fighting capabilities to back a Saudi-led coalition effort against Daesh. The Saudis have the religious and political credibility, leadership credentials, and diplomatic connections to organize such an effort. We do not. Since this century began, America has administered multiple disappointments to its allies and friends in the Middle East, while empowering their and our adversaries. Unlike the Gulf Arabs, Egypt, and Turkey, Washington does not have diplomatic relations with Tehran. Given our non-Muslim identity, solidarity with Israel, and recent history in the Fertile Crescent, the United States cannot hope to unite the region’s Muslims against Daesh.  Daesh is an insurgency that claims to exemplify Islam as well as a governing structure and an armed force. A coalition led by inhibited foreign forces, built on papered-over differences, and embodying hedged commitments will not defeat such an insurgency with or without boots on the ground.
  • When elections have yielded governments whose policies we oppose, we have not hesitated to conspire with their opponents to overthrow them. But the results of our efforts to coerce political change in the Middle East are not just failures but catastrophic failures. Our policies have nowhere produced democracy. They have instead contrived the destabilization of societies, the kindling of religious warfare, and the installation of dictatorships contemptuous of the rights of religious and ethnic minorities. Frankly, we have done a lot better at selling things, including armaments, to the region than we have at transplanting the ideals of the Atlantic Enlightenment there. The region’s autocrats cooperate with us to secure our protection, and they get it. When they are nonetheless overthrown, the result is not democracy or the rule of law but socio-political collapse and the emergence of  a Hobbesian state of nature in which religious and ethnic communities, families, and individuals are able to feel safe only when they are armed and have the drop on each other. Where we have engineered or attempted to engineer regime change, violent politics, partition, and ethno-religious cleansing have everywhere succeeded unjust but tranquil order. One result of our bungled interventions in Iraq and Syria is the rise of Daesh. This is yet another illustration that, in our efforts to do good in the Middle East, we have violated the principle that one should first do no harm.
  • Americans used to believe that we could best lead by example. We and those in the Middle East seeking nonviolent change would all be better off if America returned to that tradition and forswore ideologically motivated hectoring and intervention. No one willingly follows a wagging finger. Despite our unparalleled ability to use force against foreigners, the best way to inspire them to emulate us remains showing them that we have our act together. At the moment, we do not. In the end, to cure the dysfunction in our policies toward the Middle East, it comes down to this. We must cure the dysfunction and venality of our politics. If we cannot, we have no business trying to use an 8,000-mile-long screwdriver to fix things one-third of the way around the world. That doesn’t work well under the best of circumstances. But when the country wielding the screwdriver has very little idea what it’s doing, it really screws things up.
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    Chas Freeman served as US ambassador to Saudi Arabia during the war to liberate Kuwait and as Assistant Secretary of Defense from 1993-94. He was the editor of the Encyclopedia Britannica entry on "diplomacy" and is the author of five books, including "America's Misadventures in the Middle East" and "Interesting Times: China, America, and the Shifting Balance of Prestige."  I have largely omitted highlighting portions of the speech dealing with Muslim nations because Freeman has apparently lost touch with the actual U.S., Saudi, UAE, Kuwait, and Turish roles in creating and expanding ISIL. But his analysis of Israel's situation and recommendations for curing it seem quite valid, as well as his overall Mideast recommendation to heed the First Law of Holes: "when stuck in one, stop digging."   I recommend reading the entire speech notwithstanding his misunderstanding of ISIL. There is a lot of very important history there ably summarized.
Gary Edwards

The Mythical Banking Crisis and the Failure of the New Deal :: The Mises Economics Blog... - 0 views

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    Everything you know about FDR, The New Deal and the Great Depression Banking Crisis is wrong!!!! "From David Stockman's Contra Corner. Remarks to the Committee For The Republic, Washington DC, February 2014 (Part 4 in a 6-Part Series) Go to Part 1. The Great Depression thus did not represent the failure of capitalism or some inherent suicidal tendency of the free market to plunge into cyclical depression-absent the constant ministrations of the state through monetary, fiscal, tax and regulatory interventions.  Instead, the Great Depression was a unique historical occurrence-the delayed consequence of the monumental folly of the Great War, abetted by the financial deformations spawned by modern central banking. But ironically, the "failure of capitalism" explanation of the Great Depression is exactly what enabled the Warfare State to thrive and dominate the rest of the 20th century because it gave birth to what have become its twin handmaidens--Keynesian economics and monetary central planning. Together, these two doctrines eroded and eventually destroyed the great policy barrier--that is, the old-time religion of balanced budgets- that had kept America a relatively peaceful Republic until 1914. To be sure, under Mellon's tutelage, Harding, Coolidge and Hoover strove mightily, and on paper successfully, to restore the pre-1914 status quo ante on the fiscal front.  But it was a pyrrhic victory-since Mellon's surpluses rested on an artificially booming, bubbling economy that was destined to hit the wall. The Hoover Recovery of 1932 Worse still, Hoover's bitter-end fidelity to fiscal orthodoxy, as embodied in his infamous balanced budget of June 1932, got blamed for prolonging the depression.  Yet, as I have demonstrated in the chapter of my book called "New Deal Myths of Recovery", the Great Depression was already over by early summer 1932."
Gary Edwards

Why Mark-To-Market Accounting Rules Must Die - Forbes.com - 0 views

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    Good explanation of this 2007 FASB accounting rule that wrecked havoc in September of 2008 when GSA subprime mortgage giants Fannie Mae and Freddie Mac both failed. When the bottom fell out from under the government backed securitized mortgage pools, banks were forced by this accounting rule to radically downgrade their assets. Since banks can only lend against their assets using government controlled ratios, as the asset value was marked to a market decimated by Fannie and Freddie failures and falling housing values, this accounting rule triggered the failure of Lehman Brothers. Because of credit default swaps used to insure these thought to be publicly guaranteed securities, the Lehman failure triggered a massive default at AIG as all Lehman security holders filed insurance claims. What a mess. The authors here propose an end or at the least suspension of mark-to-market accounting rules as an immediate solution. ".... In the 1930s, because mark-to-market accounting existed, we limited the amount of time available to fix problems. At the same time, the U.S. raised taxes, increased spending and economic interference, and became protectionist. This hurt growth. The reason the Great Depression was so bad is that we took away time and growth.
Gary Edwards

The Surest Path Back to Prosperity - WSJ.com - 0 views

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    President Bush's speech at the Manhattan Institute defending Capitalism . All i can say is, it's about time someone stood up for American Capitalism. "All this leads to the most important principle that should guide our work: While reforms in the financial sector are essential, the long-term solution to today's problems is sustained economic growth. And the surest path to that growth is free markets and free people. In the wake of the financial crisis, voices from the left and right equate the free-enterprise system with greed and exploitation and failure. It's true this crisis included failures -- by lenders and borrowers and financial firms, and by governments and independent regulators. But the crisis was not a failure of the free-market system. And the answer is not to try to reinvent that system. It is to fix the problems, make reforms, and move forward with the free-market principles that have delivered prosperity and hope to people all across the globe. Capitalism is not perfect. But it is by far the most efficient and just way of structuring an economy.
Gary Edwards

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

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

The Incredible, Shrinking Presidency of Barack Obama » CounterPunch: Tells th... - 0 views

  • According to a new Washington Post-ABC poll, Barack Obama now ranks among the least popular presidents in the last century. In fact, his approval rating is lower than Bush’s was in his fifth year in office. Obama’s overall approval rating stands at a dismal 43 percent, with a full 55 percent of the public “disapproving of the way he is handling the economy”. The same percentage  of people “disapprove of the way he is handling his job as president”.  Thus, on the two main issues, leadership and the economy, Obama gets failing grades. An even higher percentage of people are upset at the way the president is implementing his signature health care system dubbed “Obamacare”.  When asked “Do you approve or disapprove of the way Obama is handling “implementation of the new health care law?” A full 62% said they disapprove, although I suspect that the anger has less to do with the plan’s “implementation” than it does with the fact that Obamacare is widely seen as a profit-delivery system for the voracious insurance industry.  Notwithstanding the administration’s impressive public relations campaign, a clear majority of people have seen through Obama’s health care ruse and given the program a big thumb’s down.
  • Of course, Obamacare is just the straw that broke the camel’s back. The list of policy disasters that preceded this latest fiasco is nearly endless,  including everything from blanket pardons for the Wall Street big-wigs who took down the global financial system, to re-upping the Bush tax cuts, to appointing a commission of deficit hawks to slash Social Security and Medicare (Bowles-Simpson), to breaking his word on Gitmo, to reneging on his promise to pass Card Check, to expanding to wars in Africa, Asia and the Middle East, to droning 4-times as many civilians as the homicidal maniac he replaced as president in 2008.
  • All told, Obama has been bad for the economy, bad for civil liberties, bad for minorities,  bad for foreign wars, and bad for health care. He has, however, been a very effective lackey-sock puppet for Wall Street, Big Pharma, the oil magnates, and the other 1% -vermin Kleptocrats who run the country and who will undoubtedly attend his $100,000-per-plate speaking engagements when he finally retires in comfort to some gated community where he’ll work on his memoirs and cash in on his 8 years of faithful service to the racketeer class.
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  • Everything has gotten worse under Obama. Everything. And, not once, in his five years as president, has this gifted and charismatic leader ever lifted a finger to help the millions of people who supported him, who believed in him, and who voted him into office. These latest poll results indicate that many of those same people are beginning to wake up and see what Obama is really all about.
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    A well-written rant from a progressive about Obama's failure as a President, supported by lots of poll results and statistics. But I find it amusing that Obama's harshest progressive critics mostly choose to view him as a failure rather than recognizing that his campaign promises and claims to be a progressive were lies. Obama has been an incredibly successful president for his real constituency, the banksters, the giant multinational corporations, the military industry, etc. Apparently it's more difficult for progressives to recognize the man for what he really stands for than to accept that they were suckered into voting for another political shyster whose real constituency are corporatist/globalist interests. They'd rather view him as a failed progressive with a still pure heart than believe that his campaign promises were lies.  But to me, Obama's behavior speaks far more loudly about his real goals than his words. 
Gary Edwards

Mice and Men: The Failures of Closing our MidEast Embassies | We Meant Well - Peter Van... - 0 views

  • What do you call it when you follow the same strategy for twelve years not only without success, but with negative results? What if time shows that that strategy actually helps the enemy you seek to defeat? Failure.
  • Failing to Learn America’s global war of terror can this week be declared officially a failure, total and complete. After twelve years of invasions, drones, torture, spying and gulags, the U.S. closed its embassies and consulates across (only) the Muslim world. Not for a day, but in most cases heading toward a week, with terror warnings on file lasting through the month. The U.S. evacuated all non-essential diplomatic and military personnel from Yemen; dependents are already gone from most other MidEast posts. Only our fortress embassies in Kabul and Baghdad ironically were considered safe enough to reopen a day or two ago. The cause of all this? Apparently a message from al Qaeda leader Ayman al Zawahiri to his second in command in Yemen telling him to “do something.”
  • Failure to Understand All this might be read in one of three ways: – The simplest explanation is that the threat is indeed real. Twelves years of war has simply pushed the terror threat around, spilled mercury-like, from country to country. A Whack-a-Mole war. – U.S. officials, perhaps still reeling from Edward Snowden’s NSA disclosures, chose to exaggerate a threat, in essence creating a strawman that could then be defeated. In favor of this argument are the many “leaks” noted above, essentially disclosing raw intel, specific conversations that would clearly reveal to the al Qaeda people concerned how and when they were monitored. Usually try to avoid that in the spy biz. The Frankenbomber stuff is pure 2001 scare tactic recycled. The idea that al Qaeda sought to seize infrastructure is a certain falsehood , as the whole point of guerrilla war is never to seize things, which would create a concentrated, open, stationary target that plays right into the Big Hardware advantage the U.S. holds. Just does not make sense, and supports the idea that this is all made-up for some U.S. domestic purpose. – However, the third way of looking at this is that the U.S. has failed to walk away from the climate of fear and paranoia that has distorted foreign and domestic policy since 9/12, Chicken Littles if you will. What if the U.S. really believed that al Qaeda was planning to take over Yemen this week in spite of the odd inconsistencies? What if “chatter” was enough to provoke the last Superpower into a super-sized public cower?
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  • Failure to Not Act The why in this case may not matter, when the what is so controlling.
  • That sadly predictable resort to violence by the U.S. shows that we have fundamentally failed to understand that in a guerrilla war one cannot shoot one’s way out.
  • You win by offering a better idea to people than the other side, while at the same time luring the other side into acts of violence and political repression that make them lose the support of those same people.
  • This is asymmetrical warfare 101 stuff.
  • –In the populations al Qaeda seeks to influence, claiming they “humbled and scared” the US twelve years after 9/11 simply by ramping up their chatter seems an effective al Qaeda strategy.
  • As with the British thrashing about as their empire collapsed, the world’s greatest military defeated by natives with old rifles, so now goes the U.S., by its own hand.
  • “We continue to pay in blood because we can’t learn how to do something besides fight.”
Gary Edwards

AEI - The Error at the Heart of the Dodd-Frank Act - 0 views

  • The underlying assumption of the Dodd-Frank Act (DFA) is that the 2008 financial crisis was caused by the disorderly bankruptcy of Lehman Brothers.
  • This is evident in the statements of officials and the principal elements of the act, which would tighten the regulation of large financial institutions to prevent their failing, and establish an "orderly resolution" system outside of bankruptcy if they do.
  • The financial crisis, however, was caused by the mortgage meltdown, a sudden and sharp decline in housing and mortgage values as a massive housing bubble collapsed in 2007. This scenario is known to scholars as a "common shock"—a sudden decline in the
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  • 27 million loans—were subprime or otherwise weak and risky loans.
  • The reason for this was the US government's housing policy, which—in the early 1990s—began to require that government agencies and others regulated or controlled by government reduce their mortgage underwriting standards so borrowers who had not previously had access to mortgage credit would be able to buy homes. The government-sponsored enterprises Fannie Mae and Freddie Mac, the Federal Housing Administration, and banks and savings and loan associations (S&Ls) subject to the Community Reinvestment Act were all required to increase their acquisition of loans to homebuyers at or below the median income in their communities. Often, government policies required Fannie, Freddie, and the others to acquire loans to borrowers at or below 80 percent, and in some cases 60 percent, of median income.
  • Sometimes it is argued that the Troubled Asset Relief Program (TARP) prevented more failures. That seems highly unlikely. The first funds were made available under TARP on October 28, 2008, about six weeks after the panic following Lehman's failure. By that time, any firm that had been mortally wounded by Lehman's collapse would have collapsed itself. Moreover, most of the TARP funds were quickly repaid by the largest institutions, and many of the smaller ones, only eight months later, in mid-June 2009. This is strong ¬evidence that the funds were not needed to cover losses coming from the Lehman bankruptcy. If there were such losses, they would still have been embedded in the balance sheets of those institutions. If the funds were needed at all—and many of the institutions took them reluctantly and under government pressure—it was to restore investor confidence that the recipients were not so badly affected by the common shock of the decline in housing and mortgage values that they could not fund orderly withdrawals, if necessary. However, even if we assume that TARP funds prevented the failure of some large financial institutions, it seems clear that the underlying cause of each firm's weakness was the decline in the value of its MBS holdings, and not any losses suffered as a result of Lehman's bankruptcy.
  • This analysis leads to the following conclusion. Without a common shock, the failure of a single Lehman-like firm is highly unlikely to cause a financial crisis. This conclusion is buttressed by the fact that in 1990 the securities firm Drexel Burnham Lambert—then, like Lehman, the fourth largest securities firm in the United States—was allowed to declare bankruptcy without any adverse consequences for the market in general. At the time, other financial institutions were generally healthy, and Drexel was not brought down by the failure of a widely held class of assets. On the other hand, in the presence of a common shock, the orderly resolution of one or a few Lehman-like financial institutions will not prevent a financial crisis precipitated by a severe common shock.
  • In effect, by giving the government the power to resolve any financial firm it believes to be failing, the act has added a whole new policy objective for the resolution of failing firms. Before Dodd-Frank, insolvency law embodied two basic policies—retain the going concern value of the firm and provide a mechanism by which creditors could realize on the assets of an insolvent firm that cannot be saved.
  • DFA will have important adverse effects on ¬insolvency law.
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    The underlying assumption of the Dodd-Frank Act (DFA) is that the 2008 financial crisis was caused by the disorderly bankruptcy of Lehman Brothers. This is evident in the statements of officials and the principal elements of the act, which would tighten the regulation of large financial institutions to prevent their failing, and establish an "orderly resolution" system outside of bankruptcy if they do. The financial crisis, however, was caused by the mortgage meltdown, a sudden and sharp decline in housing and mortgage values as a massive housing bubble collapsed in 2007. This scenario is known to scholars as a "common shock"-a sudden decline in the value of a widely held asset-which causes instability or insolvency among many financial institutions. In this light, the principal elements of Dodd-Frank turn out to be useless as a defense against a future crisis. Lehman's bankruptcy shows that in the absence of a common shock that weakens all or most financial institutions, the bankruptcy of one or a few firms would not cause a crisis; on the other hand, given a similarly severe common shock in the future, subjecting a few financial institutions to the act's orderly resolution process will not prevent a crisis. Apart from its likely ineffectiveness, moreover, the orderly resolution process in the act impairs the current insolvency system and will raise the cost of credit for all financial institutions. 
Paul Merrell

The Woman at the Center of the C.I.A.'s Torture Report - 0 views

  • or the past eight months, there has been a furious battle raging behind closed doors at the White House, the C.I.A., and in Congress. The question has been whether the Senate Select Committee on Intelligence would be allowed to use pseudonyms as a means of identifying characters in the devastating report it released last week on the C.I.A.’s abusive interrogation and detention program. Ultimately, the committee was not allowed to, and now we know one reason why. The NBC News investigative reporter Matthew Cole has pieced together a remarkable story revealing that a single senior officer, who is still in a position of high authority over counterterrorism at the C.I.A.—a woman who he does not name—appears to have been a source of years’ worth of terrible judgment, with tragic consequences for the United States. Her story runs through the entire report. She dropped the ball when the C.I.A. was given information that might very well have prevented the 9/11 attacks; she gleefully participated in torture sessions afterward; she misinterpreted intelligence in such a way that it sent the C.I.A. on an absurd chase for Al Qaeda sleeper cells in Montana. And then she falsely told congressional overseers that the torture worked.
  • Had the Senate Intelligence Committee been permitted to use pseudonyms for the central characters in its report, as all previous congressional studies of intelligence failures, including the widely heralded Church Committee report in 1975, have done, it might not have taken a painstaking, and still somewhat cryptic, investigation after the fact in order for the American public to hold this senior official accountable. Many people who have worked with her over the years expressed shock to NBC that she has been entrusted with so much power. A former intelligence officer who worked directly with her is quoted by NBC, on background, as saying that she bears so much responsibility for so many intelligence failures that “she should be put on trial and put in jail for what she has done.” Instead, however, she has been promoted to the rank of a general in the military, most recently working as the head of the C.I.A.’s global-jihad unit. In that perch, she oversees the targeting of terror suspects around the world. (She was also, in part, the model for the lead character in “Zero Dark Thirty.”)
  • Amazingly, perhaps, more than thirteen years after the 9/11 attacks, no one at the C.I.A. has ever been publicly held responsible for this failure. Evidently, the C.I.A. was adamant in its negotiations with the White House and the Senate Intelligence Committee that the American public never learn the names of anyone directly involved in this failure.
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  • According to sources in the law-enforcement community who I have interviewed over the years, and who I spoke to again this week, this woman—whose name the C.I.A. has asked the news media to withhold—had supervision over an underling at the agency who failed to share with the F.B.I. the news that two of the future 9/11 hijackers had entered the United States prior to the terrorist attacks.
  • As NBC recounts, this egregious chapter was apparently only the first in a long tale, in which the same C.I.A. official became a driving force in the use of waterboarding and other sadistic interrogation techniques that were later described by President Obama as “torture.” She personally partook in the waterboarding of Khalid Sheikh Mohammed, the architect of the 9/11 attacks, at a black site in Poland. According to the Senate report, she sent a bubbly cable back to C.I.A. headquarters in 2003, anticipating the pain they planned to inflict on K.S.M. in an attempt to get him to confirm a report from another detainee, about a plot to use African-American Muslims training in Afghanistan for future terrorist attacks. “i love the Black American Muslim at AQ camps in Afghanuistan (sic). … Mukie (K.S.M.) is going to be hatin’ life on this one,” she wrote, according to the report. But, as NBC notes, she misconstrued the intelligence gathered from the other detainee. Somehow, the C.I.A. mistakenly believed that African-American Muslim terrorists were already in the United States. The intelligence officials evidently pressed K.S.M. so hard to confirm this, under such physical duress, that he eventually did, even though it was false—leading U.S. officials on a wild-goose chase for black Muslim Al Qaeda operatives in Montana. According to the report, the same woman oversaw the extraction of this false lead, as well as the months-long rendition and gruesome interrogation of another detainee whose detention was a case of mistaken identity. Later, in 2007, she accompanied then C.I.A. director Michael Hayden to brief Congress, where she insisted forcefully that the torture program had been a tremendous and indispensable success.
  • Readers can speculate on how the pieces fit together, and who the personalities behind this program are. But without even pseudonyms, it is exceedingly hard to connect the dots. It seems entirely possible—though, again, one can only speculate—that the C.I.A. overcompensated for its pre-9/11 intelligence failures by employing overly harsh measures later. Once they’d made a choice that America had never officially made before—of sanctioning torture—it seems possible that they felt they had to defend its efficacy, despite mounting evidence to the contrary. If so, this would be worth learning. But without names, or even pseudonyms, it is almost impossible to piece together the puzzle, or hold anyone in the American government accountable. Evidently, that is exactly what the C.I.A. was fighting for during its eight-month-long redaction process, behind all those closed doors.
Paul Merrell

Tomgram: Nick Turse, American Monuments to Failure in Africa? | TomDispatch - 0 views

  • As I sit in a room filled with scores of high-ranking military officers resplendent in their dress uniforms -- Kenyans in their khakis, Burundians and Ugandans clad in olive, Tanzanians in deep forest green sporting like-colored berets and red epaulets with crossed rifles on their shoulders -- chances are that the U.S. military is carrying out some mission somewhere on this vast continent.  It might be a kidnapping raid or a training exercise.  It could be an airstrike or the construction of a drone base.  Or, as I wait for the next speaker to approach the lectern at the “Land Forces East Africa” conference in Dar es Salaam, Tanzania, it could be a humanitarian operation run not by civilians in the aid business, but by military troops with ulterior motives -- part of a near-continent-wide campaign utilizing the core tenets of counterinsurgency strategy. The U.S. is trying to win a war for the hearts and minds of Africa.  But a Pentagon investigation suggests that those mystery projects somewhere out there in Djibouti or Ethiopia or Kenya or here in Tanzania may well be orphaned, ill-planned, and undocumented failures-in-the-making.  According to the Department of Defense’s watchdog agency, U.S. military officials in Africa “did not adequately plan or execute” missions designed to win over Africans deemed vulnerable to the lures of violent extremism. 
  • This evidence of failure in the earliest stages of the U.S. military’s hearts-and-minds campaign should have an eerie resonance for anyone who has followed its previous efforts to use humanitarian aid and infrastructure projects to sway local populations in Vietnam, Iraq, or Afghanistan.  In each case, the operations failed in spectacular ways, but were only fully acknowledged after years of futility and billions of dollars in waste.  In Africa, a war zone about which most Americans are completely unaware, the writing is already on the wall.  Or at least it should be.  While Pentagon investigators identified a plethora of problems, their report has, in fact, been kept under wraps for almost a year, while the command responsible for the failures has ignored all questions about it from TomDispatch.
Paul Merrell

Korematsu's Demise? | Just Security - 0 views

  • There’s a lot that’s remarkable about last Tuesday’s Third Circuit decision in Hassan v. City of New York, which Faiza Patel cogently summarized in her post last week. In a nutshell, Hassan involves a challenge to secret intelligence operations carried out by the New York Police Department (NYPD) over the years since September 11 that allegedly targets Muslim communities “based on the false and stigmatizing premise that Muslim religious identity ‘is a permissible proxy for criminality, and that Muslim individuals, businesses, and institutions can therefore be subject to pervasive surveillance not visited upon individuals, businesses, and institutions of any other religious faith or the public at large.'” The district court had tersely granted the City’s motion to dismiss both because it concluded the plaintiffs lacked standing and because, in the alternative, it held that the plaintiffs had failed to overcome the pleading burden articulated by the Supreme Court in Iqbal. But the Third Circuit reversed on both fronts, holding that the plaintiffs’ allegations, if true, were more than enough to establish both that they had suffered an injury in fact sufficient to satisfy Article III standing, and that their equal protection and First Amendment claims were sufficiently plausible to satisfy Iqbal. To be sure, the Third Circuit’s decision is interlocutory — coming at a very preliminary stage in the litigation. But what I want to suggest in the post that follows is that, as much as any other post-September 11 judicial decision, Hassan represents the full-throated repudiation of the Supreme Court’s infamous World War II-era ruling in Korematsu v. United States that has been so long in coming — and so thoroughly overdue.
  • As I’ve written about before, Korematsu reflects two separate — but equally important — constitutional failures. The first failure was the internment policy itself, which we now know (and which the US government knew at the time) to have been a completely unnecessary — if not hysterical — overreaction to hyperbolic and (after Midway, at least) categorically overstated fears of a Japanese invasion of the West Coast. By itself, the camps were a dark stain on the history of civil liberties in the United States — albeit one of many, alas. But the second failure was, historically, the far more significant and unique one — the Supreme Court’s conscious constitutional rationalization of the internment policy, based upon a combination of naïveté on the Justices’ part and the affirmatively misleading (if not downright disingenuous) briefing by the federal government. As Justice Robert H. Jackson understood — and forcefully articulated — in his Korematsu dissent, the real violence to the “rule of law” resulting from the camps was thus not the underlying policy, but rather its validation by the Supreme Court. In his words, “a military commander may overstep the bounds of constitutionality, and it is an incident. But if we review and approve, that passing incident becomes the doctrine of the Constitution.”
  • But we’ve struggled somewhat with the second constitutional failure. The courts have repudiated Korematsu’s conviction; the Office of the Solicitor General has confessed error for its role in perpetuating the government’s misleading case before the Supreme Court; and scholars have suggested that Korematsu itself has become part of the “anti-canon” — the class of Supreme Court decisions so reviled that they are cited, if at all, in support of the wrongness of their holdings. But Korematsu itself remains on the books, as do broader concerns that courts are still vulnerable to Korematsu — style reasoning, i.e., that the need to protect national security might provide legal justification for government conduct that would otherwise be unjustifiable. Indeed, one need look no further than the ongoing debate over the SSCI’s torture report for evidence of the Korematsu mentality being alive and well.
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  • That’s why I find the Third Circuit’s analysis in Hassan so significant — not because it allows this particular civil suit to go forward, but because it does so based upon an explicit (and conscious) rejection of Korematsu — style legal reasoning. As Judge Ambro explains, “No matter how tempting it might be to do otherwise, we must apply the same rigorous standards even where national security is at stake. We have learned from experience that it is often where the asserted interest appears most compelling that we must be most vigilant in protecting constitutional rights.” And applying the strict judicial scrutiny that is triggered by government action deemed to be intentionally discriminatory on the basis of religious affiliation, the court proceeds to hold that the NYPD lacked a sufficiently compelling justification for such discriminatory treatment, because even if abstract claims of security necessity could be a compelling government interest, the NYPD’s alleged policy was far too overbroad to survive the narrow tailoring required by strict scrutiny. Thus, quoting directly from Justice Jackson’s Korematsu dissent, Judge Ambro closed his opinion by noting that “Our job is judicial. We ‘can apply only law, and must abide by the Constitution, or [we] cease to be civil courts and become instruments of [police] policy.'”
  • Faiza’s post provides far more detail on the specifics of the Third Circuit’s analysis, and the opinion itself is worth a read. For present purposes, though, it’s this mentality that I find so refreshing — that even when the government invokes the specter of September 11 and the need to prevent future acts of terrorism, courts will not abdicate their responsibility to scrutinize the government’s justifications with care, and to be especially wary of overbroad government programs carried out under the broad guise of “necessity.” Hassan certainly isn’t the first example of this kind of principled judicial decisionmaking in a post-September 11 counterterrorism suit, but it is the one that, at least in my view, most directly confronts — and rejects — the kind of deferential judicial review that was responsible for the second constitutional failure in Korematsu, and all of the pain that followed.
Gary Edwards

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
Gary Edwards

The Black Banners : Six Questions for Ali Soufan-By Scott Horton (Harper's Magazine) - 0 views

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    3. The major still-unanswered question from 9/11 may be this: Why did the CIA keep information about Khalid Al-Mihdhar - the 9/11 team member who was identified before the attacks as having a U.S. visa and tracked into the United States - secret from the FBI and other law enforcement agencies? Clearly this information could have been used to stop the 9/11 plot, yet CIA officials lied about it repeatedly, and have never been held to account either for their failure to inform or their lies. Do you have an answer? My hands started shaking. I didn't know what to think. "They just sent these reports," the [CIA chief of station*] said, seeing my reaction. I walked out of the room, sprinted down the corridor to the bathroom, and fell to the floor next to a stall. There I threw up. I sat on the floor for a few minutes, although it felt like hours. What I had just seen went through my mind again and again. The same thought kept looping back: "If they had all this information since January 2000, why the hell didn't they pass it on?" My whole body was shaking… I got myself to the sink, washed out my mouth, and splashed some water on my face. I covered my face with a paper towel for a few moments. I was still trying to process the fact that the information I had requested about major al-Qaeda operatives, information the CIA had claimed they knew nothing about, had been in the agency's hands since January 2000. The SWAT agent asked, "What's wrong, bud? What the hell did he tell you?" "They knew, they knew." -From The Black Banners: The Inside Story of 9/11 and the War Against al-Qaeda. (*Redacted in original - text restored by Harper's). Reprinted by permission of W.W. Norton & Co., © 2011 Ali Soufan. Sadly no. To date we've never been told why the information wasn't passed to the team investigating the USS Cole attack, the State Department, or the Immigration and Naturalization Service, nor why he wasn't put on a no-fly list, al
Gary Edwards

The American Spectator : To Save America: To Save America: Stopping Obama's Secular-Soc... - 0 views

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    THE OBAMA WATCH Newt Gingrich begins his new book, To Save America: To Save America: Stopping Obama's Secular-Socialist Machine, rightly describing the grave, mortal threat America faces today due to the left-wing extremism of the Democrats and the vast failures of the Republicans. He writes: This is a book I never expected to write. After the victory of freedom over Communist tyranny, of religious liberty over secular police states, and of American pride over the malaise and cynicism of the 1970s, I fully expected America to follow an upward curve of consistent improvement. I did not expect the Left to ignore the lessons of history and move further into ideological extremism. I did not expect them to react to their meager popular support by seeking to impose a corrupt, Chicago-style political machine on the entire country. After leaving Congress in 1999, I certainly did not foresee Republican failure so vast that it allowed left-wing radicals to take over the House, Senate and Presidency. America as we know it is now facing a mortal threat. This danger to America is greater than anything I dreamed possible after we won the Cold War and the Soviet Union disappeared in December 1991. We stand at a crossroads: either we will save our country or we will lose it.
Gary Edwards

How Government Failure Caused the Great Recession - The American, A Magazine of Ideas - 0 views

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    The banking crisis that began in August 2007 shocked markets and precipitated the Great Recession. To fully explain the banking crisis, one must account for its timing, severity, and global impact. One must also confront a startling historical contrast. If we define "banking crisis" to mean bank failures and system losses exceeding 1 percent of a country's gross domestic product (GDP), we find that in the period 1875-1913, a period of marked expansion in international trade and capital flows comparable to the last three decades, there were only four banking crises worldwide.1 By contrast, in the period 1978-2009, a period of much more extensive bank regulation, central bank intervention, government protection of depositors and other bank creditors, and government control of mortgage markets, about 140 banking crises occurred worldwide. Of these, 20 were more severe than any crisis from the earlier period of 1875-1913, in terms of total bank losses as a percent of GDP. Leading financial economists such as Charles Calomiris have argued that a necessary condition for a banking crisis is government policy that distorts the micro-incentives of banks. Likewise, University of Chicago scholar Richard Posner has argued the banks that got into trouble during the recent crisis were simply taking "risks that seemed appropriate in the environment in which they found themselves."2 In the period 1978-2009, about 140 banking crises occurred worldwide. But then why didn't a banking crisis erupt sooner-say, in the recession years of 1990-1991 or 2001-2002? What changed in recent years that led to business risk-taking capable of wrecking the U.S. housing market and the U.S. banking system and other banking systems throughout the world? Further, why were prudent credit practices reasonably maintained in credit card and commercial mortgage securitization in recent years, but wholly abandoned in residential mortgage securitization?
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