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Paul Merrell

Now Congress Is Fast-Tracking the TPP Fast Track | The Nation - 0 views

  • After months of back-room negotiations, key congressional negotiators are finally ready to unveil legislation that would fast-track approval for the Trans-Pacific Partnership. The bill would prohibit Congress from amending the trade deal, and would require a simple-majority vote for passage, but would in exchange set a variety of negotiating parameters. If the architects of the legislation—Senators Ron Wyden and Orrin Hatch and Representative Paul Ryan—are at all worried that members of Congress will feel fast-track leaves them out of the process, they are doing a pretty terrible job of addressing those concerns. A Senate Finance Committee hearing Thursday morning featured top US trade officials—but occurred before the legislation was even unveiled, and was called with almost no notice. This drew some unusual and strong rebukes from Democrats on the Finance Committee over an unfair process.
  • Hatch and Wyden, the chairman and ranking member of Senate Finance respectively, called hearing on Wednesday night that was ostensibly about “Congress and US Tariff Policy.” It featured several top US officials that deal with trade: US Trade Representative Michael Froman, Agriculture Secretary Tom Vilsack, and Treasury Secretary Jack Lew. Hatch announced at the top of the hearing that fast-track legislation could come as early as the afternoon, and both he and Wyden began their opening statements by talking about the looming bill. Members of the committee thus suddenly found themselves in a fast-track hearing without knowing it—and before they saw the legislation. Many of them didn’t like it. Senator Chuck Schumer, likely to be the next Democratic majority leader, opposes fast-track and objecting in the hearing to “rushing” the legislation. Senator Sherrod Brown said “We got twelve hours notice on a bill we haven’t seen…you can’t fast-track fast track.”
  • Senators appeared unsure if they would even get to see the legislation before a vote. Senator Debbie Stabenow asked if the committee would have to vote “on an agreement that we have not yet even seen and that hasn’t been reached,” according to the Huffington Post.
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  • As the hearing was going on, six Democratic members of the committee took the unusual step of issuing a joint statement objecting to the hearing they were sitting in on: “With millions of jobs on the line, American workers and manufacturers deserve more than a hastily scheduled hearing without an underlying bill. Congress should undergo a thorough and deliberative committee process for debating trade agreements that account for 40 percent of our world’s GDP. And we should be debating a bill that has seen the light of day and contains strong provisions to protect American workers against illegal trade practices like currency manipulation.” Schumer, Brown and Stabenow, along with Senators Robert Menendez, Ben Cardin and Bob Casey attached their names to the statement.
Gary Edwards

The Senate Has Passed the TPP Fast Track Bill-We Now Take Our Fight to the House | Elec... - 0 views

  • Lawmakers have headed back to their home district for the Memorial Day recess, so there's a chance you, as a constituent, can meet with them. Absent that, you can visit their district staff who can receive and forward on your concerns to your representative even after lawmakers go back to the Capitol. They will be receptive to the concerns of smart, tech-savvy constituents who care enough to arrange a meeting. We know there's a big difference between calling and writing to your congressperson, and actually talking to them face-to-face. But this is a vital moment, and there's a fighting chance that your decision to meet with your representative's office could make all the difference.
  • If you're interested, read this guide on how to set up a meeting with your lawmakers. We also prepared a hand out with talking points for you to take with you when you go. We also encourage you to tell them about our letter with 250 tech companies and user rights groups urging Congress to oppose the TPP Fast Track for containing provisions that threaten digital innovation and users. Powerful corporate interests like the Motion Picture Association of America, Recording Industry Association of America, and the Business Software Alliance are intent on having anti-user trade deals pass without proper oversight. That's because the policies they're pushing for couldn't otherwise pass in a participatory, transparent process. It's up to us to stop this massive, secret corporate hand out, and we're going to need all the help we can get. If you end up meeting with your representative or their staff, please email info@eff.org to let us know how it went!
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    "The Senate passed a bill Friday night to put the Trans-Pacific Partnership (TPP) on the Fast Track to approval. Its passage followed a series of stops and starts-an indication that this legislation was nearly too rife with controversy to pass. But after a series of deals and calls from corporate executives, senators ultimately swallowed their criticism and accepted the measure. If this bill ends up passing both chambers of Congress, that means the White House can rush the TPP through to congressional ratification, with lawmakers unable to fully debate or even amend agreements that have been negotiated entirely in secret. On the plus side, all of these delays in the Senate has led other TPP partners to delay any further negotiations on the trade agreement until Fast Track is approved by Congress. So the fight now starts in the House, where proponents of secret trade deals still lack the votes to pass the bill. But the White House and other TPP proponents are fiercely determined to garner enough support among representatives to pass the bill, in order to give themselves almost unilateral power to enact extreme digital regulations in secret. We cannot let that happen. In the House, we still have a chance to block the passage of Fast Track. That's why we are asking people in the U.S. to meet with their representatives and staff to nudge them to make the right decision. Back in DC, they may have heard arguments for and against the TPP. Your representative might think this so-called trade agreement is just about free trade, but they might not know how the copyright provisions and other leaked proposals in the TPP threaten the Internet, as well as users, developers, and start-ups across the country."
Paul Merrell

The Trans-Pacific Partnership and the Death of the Republic | WEB OF DEBT BLOG - 0 views

  • On April 22, 2015, the Senate Finance Committee approved a bill to fast-track the Trans-Pacific Partnership (TPP), a massive trade agreement that would override our republican form of government and hand judicial and legislative authority to a foreign three-person panel of corporate lawyers. The secretive TPP is an agreement with Mexico, Canada, Japan, Singapore and seven other countries that affects 40% of global markets. Fast-track authority could now go to the full Senate for a vote as early as next week. Fast-track means Congress will be prohibited from amending the trade deal, which will be put to a simple up or down majority vote. Negotiating the TPP in secret and fast-tracking it through Congress is considered necessary to secure its passage, since if the public had time to review its onerous provisions, opposition would mount and defeat it.
  • The most controversial provision of the TPP is the Investor-State Dispute Settlement (ISDS) section, which strengthens existing ISDS  procedures. ISDS first appeared in a bilateral trade agreement in 1959. According to The Economist, ISDS gives foreign firms a special right to apply to a secretive tribunal of highly paid corporate lawyers for compensation whenever the government passes a law to do things that hurt corporate profits — such things as discouraging smoking, protecting the environment or preventing a nuclear catastrophe. Arbitrators are paid $600-700 an hour, giving them little incentive to dismiss cases; and the secretive nature of the arbitration process and the lack of any requirement to consider precedent gives wide scope for creative judgments. To date, the highest ISDS award has been for $2.3 billion to Occidental Oil Company against the government of Ecuador over its termination of an oil-concession contract, this although the termination was apparently legal. Still in arbitration is a demand by Vattenfall, a Swedish utility that operates two nuclear plants in Germany, for compensation of €3.7 billion ($4.7 billion) under the ISDS clause of a treaty on energy investments, after the German government decided to shut down its nuclear power industry following the Fukushima disaster in Japan in 2011.
  • Under the TPP, however, even larger judgments can be anticipated, since the sort of “investment” it protects includes not just “the commitment of capital or other resources” but “the expectation of gain or profit.” That means the rights of corporations in other countries extend not just to their factories and other “capital” but to the profits they expect to receive there.
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  • Under the TPP, could the US government be sued and be held liable if it decided to stop issuing Treasury debt and financed deficit spending in some other way (perhaps by quantitative easing or by issuing trillion dollar coins)? Why not, since some private companies would lose profits as a result? Under the TPP or the TTIP (the Transatlantic Trade and Investment Partnership under negotiation with the European Union), would the Federal Reserve be sued if it failed to bail out banks that were too big to fail? Firestone notes that under the Netherlands-Czech trade agreement, the Czech Republic was sued in an investor-state dispute for failing to bail out an insolvent bank in which the complainant had an interest. The investor company was awarded $236 million in the dispute settlement. What might the damages be, asks Firestone, if the Fed decided to let the Bank of America fail, and a Saudi-based investment company decided to sue?
  • Just the threat of this sort of massive damage award could be enough to block prospective legislation. But the TPP goes further and takes on the legislative function directly, by forbidding specific forms of regulation. Public Citizen observes that the TPP would provide big banks with a backdoor means of watering down efforts to re-regulate Wall Street, after deregulation triggered the worst financial crisis since the Great Depression: The TPP would forbid countries from banning particularly risky financial products, such as the toxic derivatives that led to the $183 billion government bailout of AIG. It would prohibit policies to prevent banks from becoming “too big to fail,” and threaten the use of “firewalls” to prevent banks that keep our savings accounts from taking hedge-fund-style bets. The TPP would also restrict capital controls, an essential policy tool to counter destabilizing flows of speculative money. . . . And the deal would prohibit taxes on Wall Street speculation, such as the proposed Robin Hood Tax that would generate billions of dollars’ worth of revenue for social, health, or environmental causes.
  • Clauses on dispute settlement in earlier free trade agreements have been invoked to challenge efforts to regulate big business. The fossil fuel industry is seeking to overturn Quebec’s ban on the ecologically destructive practice of fracking. Veolia, the French behemoth known for building a tram network to serve Israeli settlements in occupied East Jerusalem, is contesting increases in Egypt’s minimum wage. The tobacco maker Philip Morris is suing against anti-smoking initiatives in Uruguay and Australia. The TPP would empower not just foreign manufacturers but foreign financial firms to attack financial policies in foreign tribunals, demanding taxpayer compensation for regulations that they claim frustrate their expectations and inhibit their profits.
  • What is the justification for this encroachment on the sovereign rights of government? Allegedly, ISDS is necessary in order to increase foreign investment. But as noted in The Economist, investors can protect themselves by purchasing political-risk insurance. Moreover, Brazil continues to receive sizable foreign investment despite its long-standing refusal to sign any treaty with an ISDS mechanism. Other countries are beginning to follow Brazil’s lead. In an April 22nd report from the Center for Economic and Policy Research, gains from multilateral trade liberalization were shown to be very small, equal to only about 0.014% of consumption, or about $.43 per person per month. And that assumes that any benefits are distributed uniformly across the economic spectrum. In fact, transnational corporations get the bulk of the benefits, at the expense of most of the world’s population.
  • Something else besides attracting investment money and encouraging foreign trade seems to be going on. The TPP would destroy our republican form of government under the rule of law, by elevating the rights of investors – also called the rights of “capital” – above the rights of the citizens. That means that TPP is blatantly unconstitutional. But as Joe Firestone observes, neo-liberalism and corporate contributions seem to have blinded the deal’s proponents so much that they cannot see they are selling out the sovereignty of the United States to foreign and multinational corporations.
  • For more information and to get involved, visit: Flush the TPP The Citizens Trade Campaign Public Citizen’s Global Trade Watch Eyes on Trade
Paul Merrell

How The CIA Can Send A Drone After Any Mobile Phone | Fast Company | Business + Innovation - 0 views

  • Since 2001, armed Predator drones have been used by the CIA in many foreign nations to attack individuals on the ground. There's a new revelation about them, too: In some cases, the NSA helped the CIA find targets by locking onto their powered-off mobile phones. Even when phones have their batteries removed, it appears the NSA still has the ability to locate them. Buried inside a Washington Post story by Dana Priest is the following tidbit: By September 2004, a new NSA technique enabled the agency to find cellphones even when they were turned off. JSOC troops called this "The Find," and it gave them thousands of new targets, including members of a burgeoning al-Qaeda-sponsored insurgency in Iraq, according to members of the unit. At the same time, the NSA developed a new computer linkup called the Real Time Regional Gateway into which the military and intelligence officers could feed every bit of data or seized documents and get back a phone number or list of potential targets. It also allowed commanders to see, on a screen, every type of surveillance available in a given territory.
  • "The Find," the Post article says, is run by a team in the basement of the NSA's headquarters whose job is to track the location of mobile phones in real time. Because many phones have chips that stay on even after a battery has been removed, tracking powered-down phones is within the realm of possibility. The revelations fit right in with the Edward Snowden disclosures, but the NSA isn't the only one tracking phones: Other government agencies and private companies regularly track them without warrants or court orders as well.
Paul Merrell

The Two Contending Visions of World Government: The Origin and Broader Context of Obama... - 0 views

  • U.S. President Barack Obama’s proposed ‘Trade’ deals are actually about whether the world is heading toward a dictatorial world government — a dictatorship by the hundred or so global super-rich who hold the controlling blocks of stock in the world’s largest international corporations — or else toward a democratic world government, which will be a global federation of free and independent states, much like the United States was at its founding, but global in extent. These are two opposite visions of world government; and Obama is clearly on the side of fascism, an international mega-corporate dictatorship, as will be documented here in the links, and explained in the discussion.
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    Eric Zuesse takes a deeper look at what's really at stake in Obama's fast-track authority legislation. A must-read.
Paul Merrell

Why Public Banks Outperform Private Banks: Unfair Competition or a Better Mousetrap? | ... - 0 views

  • Public banks in North Dakota, Germany and Switzerland have been shown to outperform their private counterparts. Under the TPP and TTIP, however, publicly-owned banks on both sides of the oceans might wind up getting sued for unfair competition because they have advantages not available to private banks.
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    Ellen Brown opposes fast-tracking the TPP and TTIP in part because they would allow private banksters to sue publically-owned banks for unfair competition. I have no sympathy for the private banksters. None. 
Paul Merrell

ICE Investigation Targeting Drug Planes Plagued by Scandal, Court Records Show | the na... - 0 views

  • Was “Mayan Jaguar” a Corrupt Undercover Op or a CIA Cover? An Immigration and Customs Enforcement (ICE) undercover operation involving the sale and tracking of aircraft to drug organizations played out for nearly four years in Latin America, likely allowing tons of narcotics to be flown into the US, yet it failed to result in a single prosecution in the United States, according to federal court pleadings recently discovered by Narco News. The ICE undercover operation, dubbed Mayan Jaguar, came to a screeching halt when one of the aircraft in its sights, a Gulfstream II corporate jet, crashed on Sept. 24, 2007, in Mexico’s Yucatan Peninsula with nearly 4 tons of cocaine onboard. Also on that jet at the time, according to recently discovered pleadings filed in US District Court in Florida, was an ICE transponder, which was being used as a tracking device.
  • The court pleadings are part of a case currently pending against a Brazilian national named Joao Luiz Malago, who is facing narco-trafficking and money-laundering conspiracy charges related to an indictment filed originally in January 2012. The presence of the tracking device on the ill-fated Gulfstream II, the court records allege, alerted Mexican authorities to the fact that the cocaine jet was on some kind of US government-sponsored mission prior to its demise. Also pointing to that fact was the Gulfstream jet’s tail number, N987SA, which past press reports have linked to CIA use — several flights between 2003 and 2005 to Guantanamo Bay, home to the infamous “terrorist” prison camp.
  • The court pleadings also assert that Malago was, in fact, a US government informant, who operated an alleged ICE front company called Donna Blue Aircraft Inc., which was set up in March 2007 in Florida, some seven months before it was used to sell the Gulfstream II jet to a Florida duo: Clyde O’Connor and Gregory Smith. O’Connor and Smith purchased the jet, according to a bill of sale, a mere eight days before it crashed in Mexico with its cocaine payload onboard. Narco News reported on the Gulfstream II jet crash and its aftermath extensively and has uncovered documents and sources indicating that Gregory Smith worked as a contract pilot for the US government, including US Customs (later rolled into ICE, which is part of the Department of Homeland Security, or DHS), DEA, FBI and likely CIA.
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    Shades of Operation Fast and Furious. 
Gary Edwards

DHS insider update: "It has begun" « Northeast Intelligence NetworkNortheast ... - 1 views

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    The forced confiscation of citizen savings held in Cypress bank accounts is a test by the International Bank to see if people will roll over or fight.  The Global elites are ready to pull the trigger on world wide economic collapse, and they're testing to see what the response will be. clip: "According to the most recent information provided to me from my source within the Department of Homeland Security known as "Rosebud," the final preparations are being made to deploy heavily armed federalized forces onto the streets of America. They will be deployed under the pretext of "restoring and maintaining order from the chaos brought about by the economic collapse," adding that "many will demand and embrace their deployment on the streets of America. They will get what they ask for, and more." Much like the security theater we have seen following the attacks of 9/11, we will be subjected to the jack-booted control of a federal army whose allegiance is not to the American people, but to the very architects of the chaos. "This is the reason that drones are flying over U.S. cities and farmland, and gun control legislation is on the fast track for complete implementation," stated this source. "How can people look at the situation in Cyprus and not think it won't happen here? It will, and the blowback will be unlike this country has ever seen. Surveillance, disarming the public, and conditioning the people to believe it's for their own safety is and has been  part of the plan all along. Anyone owing a gun will be demonized and described as contributing to the problem." "What happens when the middle class loses much of their wealth, or it is confiscated, by the stroke of a pen or a keyboard? What will the stores look like when people, unprepared due to the damn lies of the corporate media and the shills for the ruling elite, run to empty out everything they can get their hands on as the world, as they know it, collapses around them?" It was
Gary Edwards

The Ultimate Net Monitoring Tool: NARUS - 0 views

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    Chilling stuff.  Note that Mark Klien is an important whistleblower whose testimony has helped expose the  Federal Government - NSA domestic dragnet that has violated the constitutional rights of hundreds of thousands of law abiding American citizens.  The question I have concerns cooperation between NSA NARUS spying and the IRS. We know that the IRS used key words such as "TEA PARTY", "PATRIOT", "Constitution", and "Tenth Amendment" to target American citizens.  Does the NSA NARUS target Americans in the same way?  Are there political enemy lists with background surveillance information now circulating through different government agencies based on this targeted and illegal spying? The first thing we need to do is protect whistle blowers who are risking it all to protect the constitutional rights of American citizens and save our country.   "The equipment that technician Mark Klein learned was installed in the National Security Agency's "secret room" inside AT&T's San Francisco switching office isn't some sinister Big Brother box designed solely to help governments eavesdrop on citizens' internet communications. Rather, it's a powerful commercial network-analysis product with all sorts of valuable uses for network operators. It just happens to be capable of doing things that make it one of the best internet spy tools around. "Anything that comes through (an internet protocol network), we can record," says Steve Bannerman, marketing vice president of Narus, a Mountain View, California, company. "We can reconstruct all of their e-mails along with attachments, see what web pages they clicked on, we can reconstruct their (voice over internet protocol) calls."" Narus' product, the Semantic Traffic Analyzer, is a software application that runs on standard IBM or Dell servers using the Linux operating system. It's renowned within certain circles for its ability to inspect traffic in real time on high-bandwidth pipes, identifying packets of interest as they r
Gary Edwards

ANALYSIS: Chipotle is a victim of corporate sabotage... biotech industry food terrorist... - 1 views

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    "(NaturalNews) After observing recent events involving Chipotle and e.coli, here's my analysis of the situation: Chipotle's e.coli outbreaks are not random chance. They are the result of the biotech industry unleashing bioterrorism attacks against the only fast food company that has publicly denounced GMOs. How do we know? The CDC has already admitted that some of these e.coli outbreaks involve a "rare genetic strain" of e.coli not normally seen in foods. Furthermore, we also know the track record of the biotech industry engaging in the most criminal, dirty, sleazebag tactics imaginable against any person or company that speaks out against GMOs. Doctor Oz, for example, was maliciously targeted in a defamation campaign funded by the biotech industry earlier this year. The onslaught against Oz was initiated because he publicly expressed his support for honest GMO labeling on foods. As the attacks escalated, Doctor Oz had his own team investigate the source of the attacks and found they were all biotech industry shills, some with felony criminal records and long histories of dubious propaganda activities targeting anti-GMO activists. "
Gary Edwards

Economy Roundtable - Coast to Coast AM - 0 views

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    "Date: 05-07-14 Host: George Noory Guests: Catherine Austin Fitts, Gerald Celente, George Ure, Robert Zimmerman This special panel discussion on the economy and related topics featured investment advisor Catherine Austin Fitts, trends analyst Gerald Celente, and consultant George Ure. Currently, the financial system is still being pumped with cheap money, such as $45 billion a month in mortgage-backed securities, and interest rates remain at record lows-- but once those interest rates go back up, the economy will tumble, said Celente. Fitts cited the continued inequality and centralization in the economy as hampering growth, while Ure noted that we're in the bottoming process with the Fed, which is trying to print money fast enough so we don't drop into something like the Great Depression. While the US continues its behind-closed-doors propping up of the economy, "I still believe we're going to see something like a panic level by the end of the second quarter," Celente remarked. America used to be the land of opportunity, but now the wealth is concentrated in the hands of the few, he added. Globalization is lowering the wealth of the middle class, and the reality is "we're automating or outsourcing jobs, and putting people on government checks," Fitts commented. Ure, who studies cyclical patterns of the economy or "long waves," said right now we're seeing a "war on cash," with a huge effort to get people into an electronic system, where all their transactions and investments can be tracked. The revelations by Edward Snowden about America's surveillance state has had a depressing effect on US economic growth, as well as inspiring other countries around the world to pull out of the system, Fitts suggested. "We live in a country where the system of creating money has basically been sublet from Congress to the Federal Reserve...and government is wholesale now, in the business of granting different franchises such as in communications and money operations," Ure detail
Paul Merrell

David Davis' devastating attack on our loss of privacy | Mail Online - 0 views

  • The last time the main parties got together in a closed room, did a deal and told the country there was a need to act urgently, we were on the edge of abandoning 300 years of press freedom.This time our privacy is under threat. In the name of security, the Government is fast-tracking legislation through Parliament that will allow it to collect huge quantities of our personal data. We would do well to remember the advice of Ben Franklin: ‘Those who would give up essential liberty, to purchase a little temporary safety, deserve neither liberty nor safety.’
  • The Government has engineered a ‘theatrical emergency’ – in this case terrorism and hidden paedophile rings – to ram the Data Retention and Investigatory Powers Bill through Parliament without proper debate. It is an insult to the supremacy of Parliament, to democracy and to the trust of the public.It was April 8 when the European Court of Justice struck down the Data Retention Directive for being incompatible with human rights. The Home Office has had time to put an alternative in place, so the excuses for why the legislation is being  fast-tracked are laughable.
  • It is a sad state of affairs when European courts are a greater defender of our ancient rights than Parliament and Her Majesty’s Government. Even the German Supreme Court overturned its far less invasive data collection laws for violating the privacy rights of German citizens. How far we have slipped, this birthplace of democracy, that our own judicial safeguards stand by while our hard-fought rights are stripped from us by a Government that has lost its sense of proportion in its fear of making a mistake.
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  • Even the statistics already released are cause for concern.  The 2013 report of the Interception of Communications Commissioner revealed that 514,608 requests were made for data. By comparison, the most requests issued by the FBI in a year is 56,507. How can it be our intelligence agencies made nine times the number of requests for communications data than their US counterparts?
  • After the ‘dodgy dossier’ on weapons of mass destruction, the deceit on rendition and torture, and the debacle over the snooper’s charter, it is hard to be confident.Our Government has claimed that intercepted communications data was the critical evidence in 95 per cent of all serious crime cases. This would seem to go against the experience of the Metropolitan Police, which in evidence to a joint committee stated that ‘communications data is used sparingly, because it is costly and resource intensive, and because of the need to… consider the impact of collateral intrusion on innocent people’.
  • What this Government is chasing is not public security, it is protection from blame if anything goes wrong. Those are not the same thing.One person’s loss of freedom is everybody’s loss of freedom, one person’s loss of privacy is everybody’s loss of privacy. We must stand up for our rights and not succumb to the politics of fear. Otherwise we give those who hate our civilisation an easy victory, without a shot being fired.
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    A UK M.P. critiques the full court press in the House of Commons for new legislation attempting to work around the EU Court of Justice ruling on electronic communication data retention laws.  Very nice essay.
Gary Edwards

Stopping America's Federal Debt Explosion by Martin Feldstein - Project Syndicate - 0 views

  • the fiscal deficit is the most serious long-term economic problem facing US policymakers.
  • A decade ago, the federal debt was just 35% of GDP. It is now more than double that and projected to reach 86% in 2016. But that’s just the beginning. The annual budget deficit projected for 2016 is 5% of GDP. If it stays at that level, the debt ratio would eventually rise to 125%.
  • The high and rising level of the national debt hurts the US economy in many ways. Paying the interest requires higher federal taxes or a larger budget deficit. In 2016, the interest on the national debt is equal to nearly 16% of the revenue from personal income tax. By 2026, the projected interest on the national debt will equal more than 31% of this revenue, even if interest rates rise as slowly as the CBO projects.
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  • the time will come when the US will have to pay the interest by exporting more goods and services than it imports. And boosting net exports will require a weaker dollar to make US products more attractive to foreign buyers and foreign goods more expensive to US buyers, implying a loss in Americans’ standard of living.
  • Increased borrowing by the federal government also means crowding out the private sector. Lower borrowing and capital investment by firms reduces future productivity growth and growth in real incomes.
  • Federal taxes now take 18.3% of GDP and are projected to remain at that level for the next decade, unless tax rules or rates are changed. The rate structure for personal taxation has changed over the past 30 years, with the top tax rate rising from 28% in 1986 to more than 40% now. The corporate rate of 35% is already the highest in the industrial world.
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    "CAMBRIDGE - The US Congressional Budget Office (CBO) has just delivered the bad news that the national debt is now rising faster than GDP and heading toward ratios that we usually associate with Italy or Spain. That confirms my view that the fiscal deficit is the most serious long-term economic problem facing US policymakers. A decade ago, the federal debt was just 35% of GDP. It is now more than double that and projected to reach 86% in 2016. But that's just the beginning. The annual budget deficit projected for 2016 is 5% of GDP. If it stays at that level, the debt ratio would eventually rise to 125%. Support Project Syndicate's mission Project Syndicate needs your help to provide readers everywhere equal access to the ideas and debates shaping their lives. LEARN MORE Even that projection assumes that interest rates on the national debt will rise slowly, averaging less than 3.5% in 2026. But if the US debt ratio really is on the fast track to triple-digit levels, investors in the US and abroad may rightly fear that the government has lost control of the budget process. With debt exploding, foreign bondholders could begin to worry that the US will find a way to reduce its real value by stoking inflation or imposing a withholding tax on all government bond interest. In that case, investors will insist on a risk premium: higher interest rates on Treasury debt. Higher interest rates, in turn, would increase the deficit - and thus the future level of the debt ratio - even more. The high and rising level of the national debt hurts the US economy in many ways. Paying the interest requires higher federal taxes or a larger budget deficit. In 2016, the interest on the national debt is equal to nearly 16% of the revenue from personal income tax. By 2026, the projected interest on the national debt will equal more than 31% of this revenue, even if interest rates rise as slowly as the CBO projects. Foreign investors now own more than half of net government debt, and
Paul Merrell

The Sultan of (Emergency) Swing - 0 views

  • Amidst an astonishing, relentless, wide-ranging purge that shows no signs of abating, with 60,000 – and counting – civil servants, academics, judges, prosecutors, policemen, soldiers jailed, fired, suspended or stripped of professional accreditation, it’s relatively established by now the Turkish government was very much informed a military coup was imminent on July 15. The information may have come from Russian intelligence, although neither Moscow nor Ankara will reveal any details. So, once and for all, this was no false flag.
  • As Erdogan solidifies his internal iron grip, a formerly iron clad connection – NATO/Turkey – slowly dissolves into thin air. It’s as if the fate of Incirlik air base was hangin’ – literally – by a few, selected radar threads. There’s extreme suspicion across the spectrum in Turkey that the Pentagon knew what the «rebels» were up to. It’s a fact that not a pin drops in Incirlik without the Americans knowing it. AKP members stress the use of NATO’s communication network to coordinate the putschists and thus escape Turkish intel. At a minimum, the putschists may have believed NATO would have their backs. No «NATO ally» deigned itself to warn Erdogan about the coup. Then there’s the saga of the refueling tanker for the «rebel» F-16s. The tankers in Incirlik are all the same model – KC-135R Stratotanker – for Americans and Turks alike. They work side by side and are all under the same command; the 10th Main Tanker Base, led by Gen. Bekir Ercan Van, who was duly arrested this past Sunday – as seven judges also confiscated all the control tower communications. Not by accident Gen. Bekir Ercan Van happened to be very close to Pentagon head Ash Carter. What happened in Turkish airspace after Erdogan’s Gulfstream IV left the Mediterranean coast and landed in Istanbul’s Ataturk airport has been largely mapped – but there are still some crucial gaps in the narrative open to speculation. As Erdogan has been tight-lipped in all his interviews, one is left with a Mission Impossible-style scenario featuring «rebel» F-16s «Lion One» and «Lion Two» on a «special mission» with their transponder off; their face off with loyalist «Falcon One» and «Falcon Two»; one of the «Lions» piloted by the none other than the man who shot down the Russian Su-24 last November; the by now famous tanker that took off from Incirlik to refuel the «rebels»; and three extra pairs of F-16s that took off from Dalaman, Erzurum and Balikesir to intercept the «rebels», including the pair that protected Erdogan’s Gulfsteam (which was using callsign THY 8456 to disguise it as a Turkish Airlines flight).
  • Notorious Saudi whistleblower «Mujtahid» caused a sensation as he revealed that the UAE not only «played a role» in the coup but also kept the House of Saud in the loop. As if this was not damning enough, the self-deposed emir of Qatar, Sheikh Hamad al-Thani, very close to Erdogan, has alleged that the US and another Western nation (France is a strong possibility) had staged the whole thing, with Saudi Arabian involvement. Ankara, predictably, denied all of it.
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  • Once again, the basic facts; every intel operative in Southwest Asia knows that without a Pentagon green light, Turkish military factions would have had an extremely hard, if not impossible, time to organize a coup. Moreover, during that fateful night, until it was clear the coup was a failure, the plotters – from Washington to Brussels – were not exactly being described as «evil». A top American intel source, which does not subscribe to the usual Beltway consensus, is adamant that, «the Turkish military would not have moved without the green light from Washington. The same thing was planned for Saudi Arabia in April 2014, but was blocked at the highest levels in Washington by a friend of Saudi Arabia». The source, thinking outside the box, subscribes to what should be regarded as the key, current working hypothesis; the coup took place, or was fast-forwarded, essentially «because of Erdogan's sudden rapprochement with Russia». Turks across the spectrum would add fuel to the fire, insisting that more than likely the Istanbul airport bombing was an Operation Gladio. Rumor mills from East to West are already advancing that Erdogan should leave NATO sooner or later and join the Shanghai Cooperation Organization (SCO).
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    It's ugly in Turkey. Thousands of schools closed, thousands of academics fired, tens of thousands of people being held in sports stadium makeshift prisons, 49 generals imprisoned, Amnesty International reports that torture and rape of prisoners is widespread, Erdogan has taken over the Turkish military. U.S. involvement in the failed coup attempt seems ironclad. Turkey's bid to join the E.U. is dead and it's expected to drop out of NATO as it swings toward Russian relations.
Gary Edwards

Five pieces of evidence suggesting that California drought may be a HAARP-manufactured ... - 0 views

  • For years, many of those who've been paying attention have wondered what the purpose is of these clearly artificial chemtrails. Well, based on the extensive research findings by The HAARP Report, it seems as though these fake sprayings are helping to redirect and alter weather patterns -- in this case, to steer rain away from California."Chemtrails create a hot air layer at 30,000 feet, capping inversion," explains the report. "They [the powers that be] want that to overrun this low pressure area and prevent this low pressure from forming," as low pressure is what produces precipitation, explains the report.
  • Fukushima: a cover for HAARP and chemtrail-induced atmospheric damage killing our planet
  • A HAARP Report video posted to YouTube on April 19, 2015, lists the following five pieces of evidence suggesting that California's drought is a man-made attack on Californians:1) Low pressure areas out in the Pacific Ocean that would normally move in a counterclockwise direction have been detected moving in an anomalous clockwise direction. The HAARP Report, highlighting exclusive imagery captured on April 10, 2015, shows a "burst" of clockwise, high pressure cloud movement that would never occur naturally, and that clearly suggests weather manipulation activity meant to break up cloud formation and prevent precipitation.More on how this is accomplished through ionospheric heating is explained in the video report:YouTube.com.
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  • 2) After breaking up the areas of low pressure that would have produced rain for California, HAARP's weather weaponry and associated chemtrails generate areas of very dry air that, under normal circumstances, would be humid. Satellite imagery captured in the days following April 10 show this dry air sitting stagnant rather than rotating, breaking up the potential formation of thunderstorms.3) As it turns out, HAARP's weather manipulation machines can only operate when the D layer in the ionosphere has formed, which occurs after the sun has been up for three or four hours and ends in the evening. In the video, The HAARP Report shows how a storm that starts to pop up during this window of time is literally pushed to the right and destroyed. Dry air is pressed down, and once again the center is not moving in a counterclockwise direction as it should.
  • 4) Looking again at a massive area of dry air brought about by HAARP and chemtrails, the report points out how satellite imagery of a ring of rising air and a central column of falling air captured at 10 a.m. in California on April 9 proves that a HAARP downburst sent high pressure descending air into the jet stream, once again preventing rain.5) As this air descends, it just keeps getting bigger and bigger in the satellite imagery. And as it begins to reform, another HAARP downburst is observed on the north side of the front, with a signature clockwise flow around a high pressure area as it's sent downward. Put simply, the developing storm was basically broken up by HAARP, where it later reformed around Mexico and sent rain over New Mexico and Texas rather than California."Don't think for a minute that this drought in California is natural. They're using a variety of techniques to maintain this drought," warns The HAARP Report."The oceans are dying because of increasing ultraviolet-B. The modern HAARP transmitters punch holes in the ozone layer, since they must drive a plasmoid from 30 miles high down to the jet stream... mixing the chemtrails vertically, which breaks down the protective ozone layer.""The Pacific is dying because the base of the food chain, phyto-plankton, are being killed by the high UV-B, created by ionospheric heaters. Radiation from Fukushima is killing the Pacific, but not as fast as the lack of plankton, which can't survive the high UV-B. Fukushima is being used as a 'cover' for the excess UV-B caused by HAARP and chemtrails. That would explain the complete lack of action to stop the radiation from leaking into the Pacific."
  • Be sure to watch the full HAARP Report video here:
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    Excellent article with video demonstration explaining the drought in California, and how chemtrails are used to break up a low pressure zone. Amazing stuff. Using chemtrails, the counter clockwise spinning rotation of a low pressure zone is neutralized and even reversed, with the low pressure zone breaking up and dispersing. After watching this video, I noticed that three low pressure zones off the mid and southern coast of California were broken up with the clouds dispersing as they passed over California, Arizona and New Mexico. And guess what? The clouds came together in a new giant low pressure zone over Texas - where four days of thunderstorms and tornadados wrecked havoc. The farm land in California is being laid waste, and farm land in Texas, Oklahoma, Nebraska and Iowa is getting more water than the land can handle. "California is embroiled in a crisis of epic proportions as it continues to struggle through one of the worst droughts in state history. But emerging evidence suggests that the Golden State's water woes aren't a natural occurrence at all, and that a covert military operation involving "chemtrails" and other weather modification weaponry may be to blame. A recent episode of The HAARP Report, which tracks the activities of the U.S. military's so-called "High Frequency Auroral Research Program" (which the federal government falsely claims has been shut down), provides five pieces of compelling evidence from recently captured satellite imagery that points to deliberate weather modification as the cause of California's drought. You may have heard of "chemtrails" before -- those unnatural-looking cloud trails occasionally produced by airplanes that don't dissipate normally, and that end up blanketing the skies with a hazy muck. They differ entirely from water vapor contrails produced when water vapor condenses and freezes around small aerosol particles released from aircraft exhaust. The following image shows a sky filled with chemtrails:"
Paul Merrell

Secret US cybersecurity report: encryption vital to protect private data | US news | Th... - 0 views

  • A secret US cybersecurity report warned that government and private computers were being left vulnerable to online attacks from Russia, China and criminal gangs because encryption technologies were not being implemented fast enough. The advice, in a newly uncovered five-year forecast written in 2009, contrasts with the pledge made by David Cameron this week to crack down on encryption use by technology companies.
  • In the wake of the Paris terror attacks, the prime minister said there should be no “safe spaces for terrorists to communicate” or that British authorites could not access. Cameron, who landed in the US on Thursday night, is expected to urge Barack Obama to apply more pressure to tech giants, such as Apple, Google and Facebook, which have been expanding encrypted messaging for their millions of users since the revelations of mass NSA surveillance by the whistleblower Edward Snowden.
  • Cameron said the companies “need to work with us. They need also to demonstrate, which they do, that they have a social responsibility to fight the battle against terrorism. We shouldn’t allow safe spaces for terrorists to communicate. That’s a huge challenge but that’s certainly the right principle”. But the document from the US National Intelligence Council, which reports directly to the US director of national intelligence, made clear that encryption was the “best defence” for computer users to protect private data. Part of the cache given to the Guardian by Snowden was published in 2009 and gives a five-year forecast on the “global cyber threat to the US information infrastructure”. It covers communications, commercial and financial networks, and government and critical infrastructure systems. It was shared with GCHQ and made available to the agency’s staff through its intranet.
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  • An unclassified table accompanying the report states that encryption is the “[b]est defense to protect data”, especially if made particularly strong through “multi-factor authentication” – similar to two-step verification used by Google and others for email – or biometrics. These measures remain all but impossible to crack, even for GCHQ and the NSA. The report warned: “Almost all current and potential adversaries – nations, criminal groups, terrorists, and individual hackers – now have the capability to exploit, and in some cases attack, unclassified access-controlled US and allied information systems.” It further noted that the “scale of detected compromises indicates organisations should assume that any controlled but unclassified networks of intelligence, operational or commercial value directly accessible from the internet are already potentially compromised by foreign adversaries”.
  • The report had some cause for optimism, especially in the light of Google and other US tech giants having in the months prior greatly increased their use of encryption efforts. “We assess with high confidence that security best practices applied to target networks would prevent the vast majority of intrusions,” it concluded. Official UK government security advice still recommends encryption among a range of other tools for effective network and information defence. However, end-to-end encryption – which means only the two people communicating with each other, and not the company carrying the message, can decode it – is problematic for intelligence agencies as it makes even warranted collection much more difficult.
  • The previous week, a day after the attack on the Charlie Hebdo office in Paris, the MI5 chief, Andrew Parker, called for new powers and warned that new technologies were making it harder to track extremists. In November, the head of GCHQ, Robert Hannigan, said US social media giants had become the “networks of choice” for terrorists. Chris Soghoian, principal senior policy analyst at the American Civil Liberties Union, said attempts by the British government to force US companies to weaken encryption faced many hurdles.
  • The Guardian, New York Times and ProPublica have previously reported the intelligence agencies’ broad efforts to undermine encryption and exploit rather than reveal vulnerabilities. This prompted Obama’s NSA review panel to warn that the agency’s conflicting missions caused problems, and so recommend that its cyber-security responsibilities be removed to prevent future issues.
  • The memo requested a renewal of the legal warrant allowing GCHQ to “modify” commercial software in violation of licensing agreements. The document cites examples of software the agency had hacked, including commonly used software to run web forums, and website administration tools. Such software are widely used by companies and individuals around the world. The document also said the agency had developed “capability against Cisco routers”, which would “allow us to re-route selected traffic across international links towards GCHQ’s passive collection systems”. GCHQ had also been working to “exploit” the anti-virus software Kaspersky, the document said. The report contained no information on the nature of the vulnerabilities found by the agency.
  • Michael Beckerman, president and CEO of the Internet Association, a lobby group that represents Facebook, Google, Reddit, Twitter, Yahoo and other tech companies, said: “Just as governments have a duty to protect to the public from threats, internet services have a duty to our users to ensure the security and privacy of their data. That’s why internet services have been increasing encryption security.”
Paul Merrell

Asia Times Online :: Orwell does America - 0 views

  • Welcome to the sweet abyss of an Orwellian vortex. 2013 increasingly looks like 1984. In two previous articles, for RT RT and for Asia Times Online I have looked into the superimposed levels of blowback implied by the Boston bombing. With still so many unanswered questions regarding what took place on the ground in Boston after the bombing, it's time to look at an extra, possible Top Ten list of lingering absurdities. And this without sidestepping other unanswered crucial questions, such as why a bomb drill - organized by Craft - was going on during the marathon at which the bombing took place; and why it was <a href='http://asianmedia.com/GAAN/www/delivery/ck.php?n=a9473bc7&cb=%n' target='_blank'><img src='http://asianmedia.com/GAAN/www/delivery/avw.php?zoneid=36&cb=%n&n=a9473bc7&ct0=%c' border='0' alt='' ></a> vehemently denied that a bomb drill was going on. For this current set of questions, I'm grateful for the help of Asia Times Online's Bostonian readers.
  • 2. Since 9/11, the preferred FBI modus operandi is to use informants to lure ''potential'' terra-rists to act. See for example the Fast and Furious<-style Iran cum Mexican cartel plot. There's a strong possibility the Tsarnaev brothers were set up. In this case, is there anyone anywhere among the vast US intel apparatus investigating the FBI investigators?
  • 4. A Saudi student, injured at the bombing, who was in the US via a legal student visa, is suddenly deported on ''national security grounds'', even as investigators found ''unusual burns'' on his hand inconsistent with the injuries of other victims. He may have been a member of a Saudi clan notorious for its al-Qaeda connections. The FBI ''investigation'' is suddenly dropped shortly after the Saudi ambassador in the US held an unscheduled meeting with President Barack Obama. Add to it that even before the smoke had cleared, the Israel Lobby and the notorious disinformation website DEBKA were pointing their fingers at ''domestic terrorists with Middle East connections''.
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  • 9. The whole law enforcement apparatus insisted that there was a heavy exchange of gunfire with Dzokhar while he was hiding in a boat, before his arrest. That is false. He was unarmed, barely moving and the hail of bullets towards the boat came from the police.
  • 5. The description of the car hijacked by the brothers, a Mercedes E350 SUV, matches the description of their car left at a service station in Cambridge for two weeks prior to the bombing. A mechanic in Cambridge said Dzhokhar, Tamerlan's brother, picked up his "black Mercedes SUV" on Tuesday, the day after the marathon. The two cars may be one and the same; that blows up the whole official ''carjacking'' narrative. 6. Additionally, there's a media blackout on the owner of the allegedly hijacked Mercedes, who in theory managed to escape and call the police, who maintains that the brothers went to three ATMs and withdrew US$800 from his account - not before telling him they were the ''marathon bombers and had killed an MIT police''. The driver said he was let off at a gas station on Memorial Drive in Cambridge. But some witnesses saw Dzhokhar at the station's convenience store - without any driver. Then the narrative of the brothers robbing a convenience store was revealed to be false. Police scanners referred to a "black top" person. Still, the official narrative is that the Tsarnaev brothers were at the same place and the same time of the robbery.
  • Do the martial dance What the day-long delay in Dzhokhar's arrest indeed made possible was to turn Watertown into a monster dry run for urban martial law - euphemized as ''lockdown'' - in a very near future. As total militarization of civilian life goes - featuring, for instance, Homeland Security running amok with hundreds of armored vehicles - this was a major success. Meanwhile, on the ''legal'' front, the White House and the Justice Department are firmly on track to finally suppress the Miranda warning; that went into effect already two years ago, when an Obama secret executive order ruled the Miranda warning would not apply to suspected terrorists. Dzhokhar is a ''suspected'' terrorist - now charged with using and conspiring to use a weapon of mass destruction, yet already convicted by corporate media. Welcome to Police State USA - where at least everyone still has the right to go out shopping. For now.
Paul Merrell

Tomgram: Nick Turse, AFRICOM's Gigantic "Small Footprint" | TomDispatch - 0 views

  • In the Cold War years, while proxy battles took place between U.S.- and Soviet-backed forces in Angola and other African lands, the U.S. military, which by then had garrisoned much of the planet, was noticeably absent from the continent.  No longer.  And no one who might report on it seems to be paying attention as a downsizing media evidently sees no future in anticipating America’s future wars.  In fact, with the exception of Craig Whitlock of the Washington Post, it’s hard to think of any journalist who has dug into the fast-expanding American role in Africa.  Enter TomDispatch’s Nick Turse.  When it comes to American military plans for that continent, he has been doing the work of the rest of the American foreign press corps on his own.  For the last two years, while his bestselling book on the Vietnam War, Kill Anything That Moves, was being published, he has been carefully tracking and mapping the growing American military presence in Africa, exploring the way those moves may actually be helping to destabilize the continent, and doing his best to make sure that U.S. planning for future wars there doesn’t go unnoticed and unreported.  Today, he puts his work -- and his efforts to mine resistant AFRICOM spokespeople for information -- into a single panorama of everything a fine reporter and outsider can possibly know now about Washington’s ongoing militarization of Africa.  It’s a grim tale of the way, via a hush-hush version of mission creep, the Pentagon and AFRICOM are turning Africa into a battlefield of the future.  Don’t say you weren’t warned -- at TomDispatch. Tom
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    Nick Turse does yeoman work in unearthing as much as he can of the U.S. military's secretive --- and massive --- buildup of bases throughout Africa. Lengthy but detailed. 
Paul Merrell

400 Blackwater Mercs Deployed In Ukraine Against Separatists, German Press Reports | Ze... - 0 views

  • In what is becoming a weekly ritual, the German press continues to demolish the US case of "idealistic humaniatrian" Ukraine intervention. Recall, that it was a week ago that German tabloid Bild am Sonntag, hardly the most reputable source but certainly one which reaches the broadest audience, reported that dozens of CIA and FBI agents were "advising the Ukraine government." This conclusion is hardly a stretch and certainly based on facts considering the recent semi-secret jaunt by CIA head Brennan to Kiev. Fast forward one week when overnight the same Bild reported that about 400 elite mercenary commandos of the private US security firm, Academi, f/k/a Xe Services, f/k/a Blackwater "are involved in a punitive operation mounted by Ukraine's new government" against east Ukraine separatists.
  • Bild cites sources who report that on April 29, Germany's Federal Intelligence Service (BND) informed the Angela Merkel government about Academi commandos' involvement in Kiev's military operations in eastern Ukraine. Spiegel adds that "the information originates from U.S. intelligence services and was presented during a meeting chaired by the Chancellor's Office chief Peter Altmaier (CDU). At the meeting were present the president of the intelligence agencies and the Federal Criminal Office, as well as the intelligence coordinator of the Chancellor's Office and senior Ministry officials." Bild am Sontag did not have information about who was paying the Blackwater commandos: it is well-known they do not come cheap.
  • Of course, since no western entity, and certainly not the company itself, would ever admit its involvement in the Ukraine as it would promptly crash the official US foreign policy track claiming US non-involvement in Ukraine, none of this is surprising.
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  • Finally, in this proxy war between west and east, to believe that the US won't throw everything it can at Putin is naive, and as such the involvement of trained US mercenaries in Ukraine is beyond debate. However what is certainly surprising and far more interesting, is the persistent attempts by the German press to discredit none other than their biggest "Developed world" ally, the US. It is almost as if someone (a quite wealthy and powerful someone) has material interests that diverge with those of the Obama administration, and hence converge with those of Putin. Alongside the emerging China-Russia axis, keeping tabs on just how close to Russia Germany is willing to get, is easily the most notable story in the entire Ukraine conflict.
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    Don't miss the last paragraph. Tyler has a whiff of big money driving Germany toward maintenance of the Russo-Germanic energy alliance. The U.S. has no natural gas to deliver to Europe in the next few years and even when it does, it will be very spendy to liquify and transport it by ship. It's the U.S. government that wants to block emergence of a unified Eurasian market, not the E.U. And the U.S. is a declining market, as China's economy eclipses that of the U.S. I'm not predicting that Germany will defect from NATO in the foreseeable future, but Obama is definitely riding roughshod over the E.U. in his Ukraine strategy during the Great Recession with no resurrection of the dollar's value in sight. The ties that bind NATO together are mightily stretched at this point.   
Paul Merrell

5 Big Banks Expected to Plead Guilty to Felony Charges, but Punishments May Be Tempered... - 0 views

  • The Justice Department is preparing to announce that Barclays, JPMorgan Chase, Citigroup and the Royal Bank of Scotland will collectively pay several billion dollars and plead guilty to criminal antitrust violations for rigging the price of foreign currencies, according to people briefed on the matter who spoke on the condition of anonymity. Most if not all of the pleas are expected to come from the banks’ holding companies, the people said — a first for Wall Street giants that until now have had only subsidiaries or their biggest banking units plead guilty.
  • The Justice Department is also preparing to resolve accusations of foreign currency misconduct at UBS. As part of that deal, prosecutors are taking the rare step of tearing up a 2012 nonprosecution agreement with the bank over the manipulation of benchmark interest rates, the people said, citing the bank’s foreign currency misconduct as a violation of the earlier agreement. UBS A.G., the banking unit that signed the 2012 nonprosecution agreement, is expected to plead guilty to the earlier charges and pay a fine that could be as high as $500 million rather than go to trial, the people said.
  • Holding companies, while appearing to be the most important entities at the banks, are in less jeopardy of suffering the consequences of guilty pleas. Some banks worried that a guilty plea by their biggest banking units, which hold licenses that enable them to operate branches and make loans, would be riskier, two of the people briefed on the matter said. The fear, they said, centered on whether state or federal regulators might revoke those licenses in response to the pleas. Advertisement Continue reading the main story Behind the scenes in Washington, the banks’ lawyers are also seeking assurances from federal regulators — including the Securities and Exchange Commission and the Labor Department — that the banks will not be barred from certain business practices after the guilty pleas, the people said. While the S.E.C.’s five commissioners have not yet voted on the requests for waivers, which would allow the banks to conduct business as usual despite being felons, the people briefed on the matter expected a majority of commissioners to grant them.In reality, those accommodations render the plea deals, at least in part, an exercise in stagecraft. And while banks might prefer a deferred-prosecution agreement that suspends charges in exchange for fines and other concessions — or a nonprosecution deal like the one that UBS is on the verge of losing — the reputational blow of being a felon does not spell disaster.
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  • The foreign exchange investigation, which centers on accusations that traders colluded to fix the price of major currencies, will test the Justice Department’s strategy for securing guilty pleas on Wall Street.
  • In the case of UBS, the bank will lose its nonprosecution agreement over interest rate manipulation, the people briefed on the matter said, a consequence of its misconduct in the foreign exchange case. It is unclear why that penalty will fall on UBS, but not on other banks suspected of manipulating both interest rates and currency prices.
  • the bank is expected to avoid pleading guilty in the foreign exchange case, the people said, though it will probably pay a fine. While UBS was unlikely to plead guilty to antitrust violations because it was the first to cooperate in the foreign exchange investigation, the bank was facing the possibility of pleading guilty to fraud charges related to the currency manipulation. The exact punishment is not yet final, the people added.The Justice Department negotiations coincide with the banks’ separate efforts to persuade the S.E.C. to issue waivers from automatic bans that occur when a company pleads guilty. If the waivers are not granted, a decision that the Justice Department does not control, the banks could face significant consequences.For example, some banks may be seeking waivers to a ban on overseeing mutual funds, one of the people said. They are also requesting waivers to ensure they do not lose their special status as “well-known seasoned issuers,” which allows them to fast-track securities offerings. For some of the banks, there is also a concern that they will lose their “safe harbor” status for making forward-looking statements in securities documents.
  • In turn, the S.E.C. asked the Justice Department to hold off on announcing the currency cases until the banks’ requests had been reviewed, one of the people said. As of Wednesday, it seemed probable that a majority of the S.E.C.’s commissioners would approve most of the waivers, which can be granted for a cause like the public good. Still, the agency’s two Democratic commissioners — Kara M. Stein and Luis A. Aguilar, who have denounced the S.E.C.’s use of waivers — might be more likely to balk.
  • Corporate prosecutions are a delicate matter, peppered with political and legal land mines. Senator Elizabeth Warren, Democrat of Massachusetts, and other liberal politicians have criticized prosecutors for treating Wall Street with kid gloves. Banks and their lawyers, however, complain about huge penalties and guilty pleas. Continue reading the main story Recent Comments AvangionQ 14 hours ago These are the sorts of crimes that take down nations, jail sentences should be mandatory. Lance Haley 14 hours ago I find this whole legal exercise not only irrational, but insulting. I am a criminal defense attorney. Punishing the shareholders and the... loomypop 14 hours ago There is much more than Irony in the reality of how America treats criminal action and punishment when the entire determination and outcome... See All Comments And lingering in the background is the case of Arthur Andersen, an accounting giant that imploded after being convicted in 2002 of criminal charges related to its work for Enron. After the firm’s collapse, and the later reversal of its conviction, prosecutors began to shift from indictments and guilty pleas to deferred-prosecution agreements. And in 2008, the Justice Department updated guidelines for prosecuting corporations, which have long included a requirement that prosecutors weigh collateral consequences like harm to shareholders and innocent employees.
  • “The collateral consequences consideration is designed to address the risk that a particular criminal charge might inflict disproportionate harm to shareholders, pension holders and employees who are not even alleged to be culpable or to have profited potentially from wrongdoing,” said Mark Filip, the Justice Department official who wrote the 2008 memo. “Arthur Andersen was ultimately never convicted of anything, but the mere act of indicting it destroyed one of the cornerstones of the Midwest’s economy.”
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    In related news, the Dept. of Justice announced that it would begin using its "collateral consequences" analysis to decisions whether to charge human beings with crimes, taking into account the hardships imposed on innocent family members and other dependents if a person were sentenced to prison.  No? Sounds like corporations have more rights than human beings, yes?
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