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There's a lot to rebel against, to want to throw off. If they want to make a serious economic and political critique, they should make the one Gretchen Morgenson and Joshua Rosner make in "Reckless Endangerment": that real elites in Washington rigged the system for themselves and their friends, became rich and powerful, caused the great catering, and then "slipped quietly from the scene."

It began in the early 1990s, in the Clinton administration, and continued under the Bush administration, with the help of an entrenched Congress that wanted only two things: to receive campaign contributions and to be re-elected.

The man in charge of a bank that engaged in massive mortgage fraud chatted with a corporate media host (CNBC Squawk on the Street, 7/12/13) about the fact that virtually none of those who enriched themselves while eviscerating the life savings of many blameless people, derailing the US economy along the way, have faced criminal prosecution

Granted, Cramer is no one's idea of a serious interrogator of the financial system (FAIR Blog, 3/13/09). But much journalism on the question of criminal prosecution of industry leaders amounts to similar apologia. While there have been substantive inquiries into the wrongdoing of investment banks and auditors, those calling for jail time are often dismissed as irrational, driven by "blood lust" (Washington Post, 9/12/13), "anger" (Chicago Tribune, 11/30/13) or "vengeance" (Washington Post, 11/18/13).

We're told such calls come from the margins: That no "financial industry types" have been jailed is "a recurring theme among Occupy Wall Street protesters and some Democratic politicians" (Christian Science Monitor, 10/11/11) or "the Occupy Wall Street crowd" (New York Times, 3/1/13). People who believe bankers should go to jail are deflecting blame—from the people: "The real scandal," explained the Washington Post's Charles Lane ("Banks Aren't the Bad Guys," 11/18/13), was "Americans' shared, erroneous belief in ever-rising housing prices and corresponding mania to profit from them." And maybe they need to move on: "This all happened a really long time ago. What-ever happened to the statute of limitations?" the Washington Post (11/19/13) asked itself in a recent Q&A.

Earlier today, FBI Director James Comey implied that a broad coalition of technology companies, trade associations, civil society groups, and security experts were either uninformed or were not “fair-minded” in a letter they sent to the President yesterday urging him to reject any legislative proposals that would undermine the adoption of strong encryption by US companies. The letter was signed by dozens of organizations and companies in the latest part of the debate over whether the government should be given built-in access to encrypted data (see, for example, here, here, here, and here for previous iterations). The comments were made at the Third Annual Cybersecurity Law Institute held at Georgetown University Law Center. The transcript of his encryption-related discussion is below (emphasis added).

Increasingly, communications at rest sitting on a device or in motion are encrypted. The device is encrypted or the communication is encrypted and therefore unavailable to us even with a court order. So I make a showing of probable cause to a judge in a criminal case or in an intelligence case to the Foreign Intelligence Surveillance Court judge that the content of a particular defense or a particular communication stream should be collected to our statutory authority, and the judge approves, increasingly we are finding ourselves unable to read what we find or we’re unable to open a device. And that is a serious concern. I am actually — I think encryption is a good thing. I think there are tremendous societal benefits to encryption. That’s one of the reasons the FBI tells people not only lock your cars, but you should encrypt things that are important to you to make it harder for thieves to take them.

A group of tech companies and some prominent folks wrote a letter to the President yesterday that I frankly found depressing. Because their letter contains no acknowledgment that there are societal costs to universal encryption. Look, I recognize the challenges facing our tech companies. Competitive challenges, regulatory challenges overseas, all kinds of challenges. I recognize the benefits of encryption, but I think fair-minded people also have to recognize the costs associated with that. And I read this letter and I think, “Either these folks don’t see what I see or they’re not fair-minded.” And either one of those things is depressing to me. So I’ve just got to continue to have the conversation. I don’t know the answer, but I don’t think a democracy should drift to a place where suddenly law enforcement people say, “Well, actually we — the Fourth Amendment is an awesome thing, but we actually can’t access any information.”

The new rules for exemptions to copyright's DRM-circumvention laws were issued today, and the Librarian of Congress has granted much of what EFF asked for over the course of months of extensive briefs and hearings. The exemptions we requested—ripping DVDs and Blurays for making fair use remixes and analysis; preserving video games and running multiplayer servers after publishers have abandoned them; jailbreaking cell phones, tablets, and other portable computing devices to run third party software; and security research and modification and repairs on cars—have each been accepted, subject to some important caveats.

The exemptions are needed thanks to a fundamentally flawed law that forbids users from breaking DRM, even if the purpose is a clearly lawful fair use. As software has become ubiquitous, so has DRM.  Users often have to circumvent that DRM to make full use of their devices, from DVDs to games to smartphones and cars. The law allows users to request exemptions for such lawful uses—but it doesn’t make it easy. Exemptions are granted through an elaborate rulemaking process that takes place every three years and places a heavy burden on EFF and the many other requesters who take part. Every exemption must be argued anew, even if it was previously granted, and even if there is no opposition. The exemptions that emerge are limited in scope. What is worse, they only apply to end users—the people who are actually doing the ripping, tinkering, jailbreaking, or research—and not to the people who make the tools that facilitate those lawful activities. The section of the law that creates these restrictions—the Digital Millennium Copyright Act's Section 1201—is fundamentally flawed, has resulted in myriad unintended consequences, and is long past due for reform or removal altogether from the statute books. Still, as long as its rulemaking process exists, we're pleased to have secured the following exemptions.

The new rules are long and complicated, and we'll be posting more details about each as we get a chance to analyze them. In the meantime, we hope each of these exemptions enable more exciting fair uses that educate, entertain, improve the underlying technology, and keep us safer. A better long-terms solution, though, is to eliminate the need for this onerous rulemaking process. We encourage lawmakers to support efforts like the Unlocking Technology Act, which would limit the scope of Section 1201 to copyright infringements—not fair uses. And as the White House looks for the next Librarian of Congress, who is ultimately responsible for issuing the exemptions, we hope to get a candidate who acts—as a librarian should—in the interest of the public's access to information.

A secret Defense Department program provides unfettered eavesdropping on the accused terrorists imprisoned at Guantánamo’s clandestine Camp 7 lockup, recently released war court documents show.Army Col. James L. Pohl, the judge in 9/11 trial, discovered the existence of the secret surveillance program during a recent war court hearing. Little is publicly known about the program, not even its unclassified two-word nickname.

The disclosure of pervasive eavesdropping at Guantánamo’s lockup for 14 former CIA prisoners comes in before-and-after documents released by the court from the recent Oct. 19-30 pretrial hearings in the death-penalty case of five men accused of orchestrating the hijackings that killed nearly 3,000 people on Sept. 11, 2001.At issue was accused 9/11 plotter Walid bin Attash’s request for guidance on how he could function as his own attorney. Bin Attash is a Yemeni in his mid-30s who is accused of training some of the hijackers. “You must assume anything you say in Camp 7 is not confidential and will be disclosed to the U.S. Government,” warns an Oct. 23 draft of the advisory, crafted after the judge was informed of the covert program. “Only when you are in Echo 2 will anything you say be covered by the attorney-client privilege.”An Oct. 20 draft of the advisory omits those lines.

This is not the first time in the proceedings that a surveillance program caught Pohl by surprise. In January 2013, he ordered the CIA to unplug a button that allowed an unseen observer to cut the court’s audio feed to the public. Perhaps ironically, the lone site the judge considers safe for consultative trial preparation — the Camp Echo compound of wooden huts, each containing a cell — at one time had covert recording devices that looked like smoke detectors. The judge ordered them disabled in February 2013.Attorney Dror Ladin of the American Civil Liberties Union, who was an observer at the Guantánamo hearings last month, said the apparent disclosure of “pervasive surveillance at Camp 7” is the latest issue to challenge the possibility of a fair trial.“It is shocking that for years neither defense counsel nor the judge were made aware that the government was capturing everything said aloud by the detainees there,” he said Thursday. It also adds to mounting questions of “how these military commissions can produce a fair result,” said Ladin, especially if one of the men represents himself. “These are detainees who really can’t see the evidence against them and simultaneously have been provided no rehabilitation services for the torture they suffered for years. It would be astonishing if any of them could craft a fair defense for capital charges.”

Most sentient people rationally accept that the U.S. media routinely disseminates misleading stories and outright falsehoods in the most authoritative tones. But it’s nonetheless valuable to examine particularly egregious case studies to see how that works. In that spirit, let’s take yesterday’s numerous, breathless reports trumpeting the “BREAKING” news that “Edward Snowden now wants to come home!” and is “now negotiating the terms of his return!” Ever since Snowden revealed himself to the public 20 months ago, he has repeatedly said the same exact thing when asked about his returning to the U.S.: I would love to come home, and would do so if I could get a fair trial, but right now, I can’t. His primary rationale for this argument has long been that under the Espionage Act, the 1917 statute under which he has been charged, he would be barred by U.S. courts from even raising his key defense: that the information he revealed to journalists should never have been concealed in the first place and he was thus justified in disclosing it to journalists. In other words, when U.S. political and media figures say Snowden should “man up,” come home and argue to a court that he did nothing wrong, they are deceiving the public, since they have made certain that whistleblowers charged with “espionage” are legally barred from even raising that defense.

Snowden has also pointed out that legal protections for whistleblowers are explicitly inapplicable to those, like him, who are employed by private contractors (rendering President Obama’s argument about why Snowden should “come home” entirely false). One month after Snowden was revealed, Daniel Ellsberg wrote an Op-Ed in the Washington Post arguing that Snowden did the right thing in leaving the U.S. because he would not be treated fairly, and argued Snowden should not return until he is guaranteed a fully fair trial. Snowden has said all of this over and over. In June 2013, when I asked him during the online Guardian chat why he left the U.S. for Hong Kong, he said: “the US Government, just as they did with other whistleblowers, immediately and predictably destroyed any possibility of a fair trial at home . . . That’s not justice, and it would be foolish to volunteer yourself to it if you can do more good outside of prison than in it.” In January 2014, AP reported about a new online chat Snowden gave: “Snowden said returning would be the best resolution. But Snowden said he can’t return because he wouldn’t be allowed to argue at trial that he acted in the public interest when he revealed the National Security Agency’s mass surveillance programs.” In that chat, he said: “Returning to the US, I think, is the best resolution for the government, the public, and myself.”

Gingrich: “I think if we can find a way to get him home, get the rest of the documents that he has not leaked . . . it’s worth doing, but I think he’d have to serve jail time, and it’d probably be fairly lengthy. I don’t think the country would tolerate this level of betrayal, not having some very significant jail time — Blitzer: “You say lengthy. What do you think? Gingrich: “I’m not an expert in this, but I’d say more than 10 years.” Where to start? First, Gingrich’s belief that it’s possible to “get the rest of the documents that he has not leaked” is simply adorable. Second, Gingrich is a fascinating choice for CNN to have pontificate on proper punishments given that he is the first House Speaker to ever be punished for ethics violations, for which he was fined $300,000. Third, David Petraeus was just allowed to plead guilty for leaking extremely sensitive secrets — not out of a whistleblowing desire to inform the public but simply to satisfy his mistress — and will almost certainly spend no time in jail; Gingrich, Blitzer, Ignatius and friends would never dare suggest that the General should go to prison (just as DC’s stern law-and-order advocates who demand Snowden’s imprisonment would never dare suggest the same for James Clapper for having lied to Congress).

Venezuelan President Nicolas Maduro unveiled  a series of economic measures on Tuesday following the release of a new poll predicting a victory for the ruling United Socialist Party (PSUV) in December parliamentary elections. Among the measures are various modifications to Venezuela’s Fair Price Law aimed at fighting speculation by private retailers, which has become rampant amid soaring inflation.

A new category of maximum price will applied to all goods and services, stipulating a 30% maximum profit for retailers determined on the basis of “real costs of production and commercialization”. Within this new schema, importers will be entitled to a maximum profit of 20%, while domestic producers will be allowed to take in a 30% maximum gain in an effort to stimulate national production. By capping profits in each rung of the production chain, the government aims to put a halt to the speculative spiral rapidly driving up the prices of everyday goods, which constantly erodes the purchasing power of Venezuela’s popular sectors. Additionally, Maduro announced a modification applying to food and health services, a category, which the government says has been manipulated by private retailers. The new “Fair Price” registry will be determined unilaterally by Venezuela’s National Superintendence of Fair Prices over the next 30 days. In order to enforce the new “fair price” regime, Maduro also unveiled tougher punishments for speculation, which will be detected by evaluating the net income of private firms in light of new regulations on maximum price and maximum profit. The government will now impose steeper penalties on retailers who remark the price of goods, which may include jail time. Furthermore, the common practice of fixing prices on the basis of the parallel dollar will now be considered an offense. Apart from measures against speculation, Maduro also announced a 30% across-the-board salary increase for public sector workers and armed forces personnel, which comes on the heels of a 30% raise in the national minimum wage announced last week. The salary adjustment was coupled with the approval of 110,000 new pensioners as part of the national pension system, which has been massively expanded under the Bolivarian administrations of Chávez and Maduro.

Lastly, the Venezuelan president indicated that the ministries of industry and commerce would be fused in order to better coordinate efforts to combat speculation and guarantee the distribution of essential goods.

The United Socialist Party of Venezuela won at least 17 of the 23 governorships, also garnering 54 percent of the vote. U.S. Ambassador to the United Nations, Nikki Haley, cast doubt on the results of Venezuela's Regional Elections where candidates from the governing Socialist Party won a vast majority of seats, claiming the vote was not "free and fair." 

The United Socialist Party of Venezuela, or PSUV won at least 17 of the 23 governorships, also garnering 54 percent of the vote. The PSUV candidate for Bolivar state, where no official results have been declared yet, also claimed victory. Turnout was 61.14 percent in Sunday's polls, with ballots cast at 13,559 polling stations nationwide. Venezuelan President Nicolas Maduro said it was the highest turnout in 15 years - more than 10 million people voted.

Prior to the vote, the U.S. State Department issued a statement questioning the "fairness of the electoral process" in Venezuela, and expressing "great concern that the regime will not permit the presence of independent international electoral observers." Over 1,300 national and international observers, including opposition appointed auditors, were on hand for the Oct. 15 vote. An audit of the vote will also be held, election officials confirmed Monday. The U.S.-backed opposition meanwhile, has stated they would not recognize the results that have been reported by the head of the National Electoral Council (CNE), Tibisay Lucena. "We do not recognize the results offered by Tibisay Lucena," said opposition coalition MUD campaign chief Gerardo Blyde. Blyde said the results are not reflective of those being tracked by his party. He also accused the electorate of misrepresenting the location of the polling stations in a bid to confuse voters.

Economics and a degree of common sense also tells us that we will always be more cautious in spending our money than a third party will be.

When the greed, recklessness, and illegal behavior on Wall Street drove this country into the deepest recession since the 1930s, the largest financial institutions in the United States took every advantage of being American. They just loved their country - and the willingness of the American people to provide them with the largest bailout in world history. In 2008, Congress approved a $700 billion gift to Wall Street. Another $16 trillion in virtually zero interest loans and other financial assistance came from the Federal Reserve. America. What a great country. But just two years later, as soon as these giant financial institutions started making record-breaking profits again, they suddenly lost their love for their native country. At a time when the nation was suffering from a huge deficit, largely created by the recession that Wall Street caused, the major financial institutions did everything they could to avoid paying American taxes by establishing shell corporations in the Cayman Islands and other tax havens.

In 2010, Bank of America set up more than 200 subsidiaries in the Cayman Islands (which has a corporate tax rate of 0.0 percent) to avoid paying U.S. taxes. It worked. Not only did Bank of America pay nothing in federal income taxes, but it received a rebate from the IRS worth $1.9 billion that year. They are not alone. In 2010, JP Morgan Chase operated 83 subsidiaries incorporated in offshore tax havens to avoid paying some $4.9 billion in U.S. taxes. That same year Goldman Sachs operated 39 subsidiaries in offshore tax havens to avoid an estimated $3.3 billion in U.S. taxes. Citigroup has paid no federal income taxes for the last four years after receiving a total of $2.5 trillion in financial assistance from the Federal Reserve during the financial crisis. On and on it goes. Wall Street banks and large companies love America when they need corporate welfare. But when it comes to paying American taxes or American wages, they want nothing to do with this country. That has got to change.

Offshore tax abuse is not just limited to Wall Street. Each and every year corporations and the wealthy are avoiding more than $100 billion in U.S. taxes by sheltering their income offshore. Pharmaceutical companies like Eli Lilly and Pfizer have fought to make it illegal for the American people to buy cheaper prescription drugs from Canada and Europe. But, during tax season, Eli Lilly and Pfizer shift drug patents and profits to the Netherlands and other offshore tax havens to avoid paying U.S. taxes.

New York Post columnist John Crudele obliterates the despicable word-parsing. “Clinton was so careless when using her BlackBerry that the Russians stole her password,” he writes. “All Russian President Vladimir Putin’s gang had to do was log into Clinton’s account and read whatever they wanted.” When it comes to the DNC hack, “The Russians did it” is the theme-du-jour. Clinton campaign manager, Robby Mook stated Sunday that “experts are telling us that Russian state actors broke into the DNC, stole these emails, [and are] releasing these emails for the purpose of helping Donald Trump.” The campaign itself echoed that assertion. “This is further evidence the Russian government is trying to influence the outcome of the election.”

President Obama’s Kansas speech is a remarkable document. In calling for more government controls, more taxation, more collectivism, he has two paragraphs that give the show away. Take a look at them. there is a certain crowd in Washington who, for the last few decades, have said, let’s respond to this economic challenge with the same old tune. “The market will take care of everything,” they tell us. If we just cut more regulations and cut more taxes–especially for the wealthy–our economy will grow stronger. Sure, they say, there will be winners and losers. But if the winners do really well, then jobs and prosperity will eventually trickle down to everybody else. And, they argue, even if prosperity doesn’t trickle down, well, that’s the price of liberty. Now, it’s a simple theory. And we have to admit, it’s one that speaks to our rugged individualism and our healthy skepticism of too much government. That’s in America’s DNA. And that theory fits well on a bumper sticker. (Laughter.) But here’s the problem: It doesn’t work. It has never worked. (Applause.) It didn’t work when it was tried in the decade before the Great Depression. It’s not what led to the incredible postwar booms of the ’50s and ’60s. And it didn’t work when we tried it during the last decade. (Applause.) I mean, understand, it’s not as if we haven’t tried this theory.

s Mayor Rahm Emanuel was apologizing Wednesday for the broken system of police accountability exposed by the Laquan McDonald case, city attorneys argued before a federal judge that footage of an officer fatally shooting a 17-year-old carjacking suspect nearly three years ago should be kept from public view.Lawyers for Cedrick Chatman's family allege the videos of his January 2013 killing contradict statements from police that Chatman had turned and pointed a dark object at police as he ran, prompting Officer Kevin Fry to fire in fear of his life. City attorneys argue releasing the footage — which they described as low-quality and incomplete — could inflame the public and jeopardize a fair trial.At a brief hearing Wednesday, U.S. District Judge Robert Gettleman said the records should stay sealed for the time being. But the judge said he would likely lift the protective order next month if he was going to be asked to consider the videos in any pretrial rulings, a move that would automatically make them part of the public record.

"If it's likely going to come out through pretrial motions, then there really is no reason to wait," said Gettleman, who set a hearing on the issue for Jan. 14.Gettleman's ruling came three weeks after police dash-cam video of 17-year-old McDonald being shot 16 times by Officer Jason Van Dyke went viral, sparking protests and leading to the resignations of both police Superintendent Garry McCarthy and Scott Ando, who headed the Independent Police Review Authority, which has drawn criticism for its lax enforcement on excessive-force complaints.

Earlier this year, Lorenzo Davis, the IPRA supervisor who headed up the Chatman probe, filed a federal lawsuit alleging he was fired by Ando for concluding that officers in several shootings — including Chatman's — were not justified in using lethal force.Davis, who viewed the surveillance video as part of the IPRA inquiry, told the Tribune last month he did not see Chatman aim at or turn toward the officers."Cedrick was just running as the shots were fired," Davis said. "You're taught that deadly force is a last resort and that you should do everything in your power to apprehend the person before you use deadly force. I did not see where deadly force was called for at that time."An investigator on Davis' team alleged that Fry violated the department's deadly force policy, but that claim was ruled "unfounded" in the final IPRA report.