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A month after former CIA officer Jeffrey Sterling was convicted on nine felony counts with circumstantial metadata, the zealous prosecution is now having potentially major consequences — casting doubt on the credibility of claims by the U.S. government that Iran has work on a nuclear weapons program.With negotiations between Iran and the United States at a pivotal stage, fallout from the trial’s revelations about the CIA’s Operation Merlin is likely to cause the International Atomic Energy Agency to re-examine U.S. assertions that Iran has pursued nuclear weapons.

In its zeal to prosecute Sterling for allegedly leaking classified information about Operation Merlin — which provided flawed nuclear weapon design information to Iran in 2000 — the U.S. government has damaged its own standing with the IAEA. The trial made public a treasure trove of information about the Merlin operation.Last week Bloomberg News reported from Vienna, where IAEA is headquartered, that the agency “will probably review intelligence they received about Iran as a result of the revelations, said the two diplomats who are familiar with the IAEA’s Iran file and asked not to be named because the details are confidential.”The Bloomberg dispatch, which matter-of-factly referred to Merlin as a “sting” operation, quoted a former British envoy to the IAEA, Peter Jenkins, saying: “This story suggests a possibility that hostile intelligence agencies could decide to plant a ‘smoking gun’ in Iran for the IAEA to find. That looks like a big problem.”

Investigative journalist Marcy Wheeler, my colleague at ExposeFacts, has written an extensive analysis of the latest developments. The article on her EmptyWheel blog raises key questions beginning with the headline “What Was the CIA Really Doing with Merlin by 2003?”An emerging big irony of United States of America v. Jeffrey Alexander Sterling is that the government has harmed itself in the process of gunning for the defendant. While the prosecution used innuendos and weak circumstantial evidence to obtain guilty verdicts on multiple felonies, the trial produced no actual evidence that Sterling leaked classified information. But the trial did provide abundant evidence that the U.S. government’s nuclear-related claims about Iran should not be trusted.In the courtroom, one CIA witness after another described Operation Merlin as a vitally important program requiring strict secrecy. Yet the government revealed a great deal of information about Operation Merlin during the trial — including CIA documents that showed the U.S. government to be committed to deception about the Iranian nuclear program.

A bombshell White House memo has revealed for the first time details of the ‘deal in blood’ forged by George Bush and Tony Blair over the Iraq War.The damning memo, from secretary of state Colin Powell to president George Bush, was written on March 28, 2002, a week before Bush’s famous summit with Blair at his Crawford ranch in Texas.The Powell document, headed ‘Secret... Memorandum for the President’, lifts the lid on how Blair and Bush secretly plotted the war behind closed doors at Crawford. In it, Powell tells Bush that Blair ‘will be with us’ on military action. Powell assures the president: ‘The UK will follow our lead’.The classified document also discloses that Blair agreed to act as a glorified spin doctor for the president by presenting ‘public affairs lines’ to convince a skeptical public that Saddam had Weapons of Mass Destruction - when none existed.In return, the president would flatter Blair’s ego and give the impression that Britain was not America’s poodle but an equal partner in the ‘special relationship’. 

The sensational leak shows that Blair had given an unqualified pledge to sign up to the conflict a year before the invasion started.It flies in the face of the UK Prime Minister’s public claims at the time that he was seeking a diplomatic solution to the crisis.He told voters: ‘We’re not proposing military action’ - in direct contrast to what the secret email now reveals. 

The disclosure is certain to lead for calls for Sir John Chilcot to reopen his inquiry into the Iraq War if, as is believed, he has not seen the Powell memo.A second explosive memo from the same cache also reveals how Bush used ‘spies’ in the Labour Party to help him to manipulate British public opinion in favor of the war.The documents, obtained by The Mail on Sunday, are part of a batch of secret emails held on the private server of Democratic presidential candidate Hillary Clinton which U.S. courts have forced her to reveal.Former UK Conservative shadow home secretary David Davis said: ‘The memos prove in explicit terms what many of us have believed all along: Tony Blair effectively agreed to act as a frontman for American foreign policy in advance of any decision by the House of Commons or the British Cabinet.

      Israeli prime minister Benjamin Netanyahu is in danger of being brought down, possibly soon, over what initially appears to be little more than an imprudent taste for Cuban cigars and pink champagne. In truth, however, the allegations ensnaring Netanyahu reveal far more than his personal flaws or an infatuation with the high life. They shine a rare light on the corrupt nexus between Israel’s business, political and media worlds, compounded by the perverse influence of overseas Jewish money. Of the two police investigations Netanyahu faces (there are more in the wings), the one known as Case 1000, concerning gifts from businessmen worth hundreds of thousands of dollars, is most likely to lead to his downfall. But it is the second investigation, Case 2000, and the still-murky relationship between the two cases, that more fully exposes the rot at the heart of Israel’s political system. This latter case hinges on a tape recording in which Netanyahu plots with an Israeli newspaper tycoon to rig media coverage in his favor. Leads from both cases suggest that Netanyahu may have been further meddling, together with his billionaire friends, in the shadowy world of international espionage.

Netanyahu’s appetite for a free lunch has been common knowledge in Israel since his first term as prime minister in the late 1990s. Then, he was twice investigated for fraud, though controversially charges were not brought in either case. Police discovered along the way that he and his wife, Sara, had horded many of the gifts he received during state visits. More than 100 were never recovered. The clarifications that were issued more than 15 years ago, as a result of those investigations, make it hard for Netanyahu to claim now that he did not understand the rules. According to justice ministry advice in 2001, government and state officials cannot keep gifts worth more than $100 without risking violating Israeli law. The gifts Netanyahu received from one of the Israeli businessmen involved in Case 1000, Hollywood film producer Arnon Milchan, amounted to as much as $180,000. Netanyahu has argued that these presents, ranging from cigars to jewelry, were expressions of a close friendship rather than bribes to him in his capacity as prime minister. The problem, however, is that Netanyahu appears to have reciprocated by using his position as head of the Israeli government to lobby John Kerry, the then U.S. secretary of state, to gain Milchan a 10-year U.S. residency visa. He may have done more.

Also being investigated are his family’s ties to a friend of Milchan’s, Australian billionaire James Packer, who made his fortune in the media and gambling industries. Packer has similarly lavished gifts on the Netanyahu family, especially Yair, Netanyahu’s eldest son. At the same time, Packer, now a neighbor of the Netanyahus in the coastal town of Caesarea, has been seeking permanent residency and the enormous benefits that would accrue with tax status in Israel. As a non-Jew, Packer should have no hope of being awarded residency. There are suspicions that Netanyahu may have been trying to pull strings on the Australian’s behalf. Many of these gifts were apparently not given freely. The Netanyahus asked for them. Indicating that Netanyahu knew there might be legal concerns, he used code words – “leaves” for cigars and “pinks” for champagne – to disguise his orders to Milchan. Police are reported to be confident, after questioning Netanyahu three times, that they have enough evidence to indict him. If they do, Netanyahu will be under heavy pressure to resign.

Editor's Note:With the rise of the Islamic State (IS), the conflicts in Syria and Iraq, and the struggle between Iran and the West over nuclear issues, the Middle East remained chaotic in 2014. What about 2015? What kind of role will the US play in the regional political landscape? At a seminar held by the Chongyang Institute for Financial Studies, Renmin University of China, Global Times (GT) reporter Liu Zhun talked to Flynt Leverett (Flynt), former senior director of Middle East Affairs at the National Security Council (NSC), and Hillary Mann Leverett (Hillary), former director of Iran, Afghanistan and Persian Gulf Affairs at the NSC, about these issues. GT: What is your forecast of the situation of the Middle East this year?

Flynt: More and more negative consequences of the failed US drive for the hegemony in the Middle East will become increasingly evident. The US is struggling to come to terms with that. Washington should reconsider its basic strategy for this region, but President Barack Obama has a great belief in US' hegemonic agenda. Many analysts in the US argue that Washington should "double-down" on its strategy. But this is the wrong direction.Hillary: There will be more violence throughout the region - violence encouraged by the US. A potential difference rests on the possibility that an alternative mindset will be brought in by China as it rises. Whether Russia, with the support of China and Iran, can put Syria's conflicts on a different trajectory toward resolution is important - whether they can bring in a different paradigm for conflict resolution. I am not sure they can yet, but I am encouraged by China's rise and its focus on sovereignty and conflict resolution. GT: If the US changes its course, will the region be a better place?Flynt: Yes, it will be a better place. The historical record has proven that. For 20 years after China's revolution, the US was doing everything it could to isolate and hurt the People's Republic of China. After it gave up its hostile policies toward China, China, as well as other East Asian countries, embarked on a long and productive period of economic expansion with rising prosperity for hundreds of millions of people. The Middle East will not be perfect after the US changes its policy, but it will be better.

GT: But the chaos in the Middle East, much of which is driven by religious issues, is more complicated than the conflicts China encountered with the US, which were basically ideological. What do you think of the role of Islam in the chaos of the Middle East?Hillary: There has been a perception that there is something wrong with Islam and that it is the major contributor to the complications of the problems in the Middle East. But if you look historically, that is not really true. There is no evidence that Muslims are historically terrorists. The head of the IS was in an American prison, where he became more extreme in his own views and forged a network with other extremists.The perennial chaos of the Middle East, to a large extent, is caused by a long history of military penetration by Western countries such as France, the UK and now the US. GT: You suggest the US should shift its Middle East policy and pull back from trying to be a hegemon - for example, by restoring ties with Iran. What do you think of Obama's current strategy to the Middle East?Flynt: People are talking about the Obama doctrine and his being less interventionist. I don't really think that is right. I think the Obama administration is no less committed to so-called global leadership, which is actually hegemony, over strategically important areas like the Middle East. The Obama administration thinks it has a smarter way of promoting that leadership than its immediate predecessor. But that is more a tactical than strategic difference.

The Consumer Financial Protection Bureau (CFPB) has fined Wells Fargo for $100 million based on fraudulent customer account practices. An additional $85 million is to be paid to the city of Los Angeles in California, along with the Office of the Comptroller of the Currency.

Last year Wells Fargo was sued by employees (current and former) and customers all across the nation for setting up “unwanted accounts, unwarranted fees”. According to the lawsuit, this was “the largest California-based bank violated state and federal laws by misusing confidential information and failing to notify customers when personal information was breached.” Using “aggressive tactics” to coerce new customers, Wells Fargo made it “difficult to correct the mistakes” made by Wells Fargo and return fees to customers because of “high-pressure sales culture set unrealistic quotas, spurring employees to engage in fraudulent conduct to keep their jobs and boost the company’s profits.” Over the course of an extended period of time, “Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses.” There were 1.5 million accounts opened without the authorization of customers and 500,000 credit cards accounts to boot. Wells Fargo has consistently blames “a few rogue employees. Five hundred employees were terminated, according to a Wells Fargo spokesperson. There was no mention of rescinding of bonuses paid to those employees, and there is no clear evidence that executive’s payouts totaling $155 million for “performance based compensation” for 2012 through 2013 was returned to the bank.

Those bonuses were administered based on the fraudulent accounts opened without customer approval. In a statement, Wells Fargo expressed belated regret and a sudden desire to “take responsibility for any instances where customers may have received a product that they did not request.” The training that caused this problem in the first place was a cross-selling strategy called “Going For Gr-Eight” which is a brochure for employees to push banking products onto households of existing customers to increase fee potential and overall profitability. Wells Fargo “staffers, fearing disciplinary action from managers, begged friends and family members to open ghost accounts” and forged signatures “and falsified phone numbers” of customers who did not want to open an account. This practice drove Wells Fargo’s financial success with an estimated “26% of the company’s revenue was from fee income, including those from credit and debit card accounts, trusts and investments.” The bank not only stole money from customers but “also damage their credit scores” and put some into collections to garner fees “for unauthorized accounts went unpaid”. In case of a complaining customer, Wells Fargo would “sandbag” their customers; meaning “failing to open accounts when requested by customers, and instead accumulating a number of account applications to be opened at a later date.”

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

Q: Right. I read in Peter Jenkins’ analysis of your book that Israel has fabricated certain documents, including the information said to have been retrieved from a laptop computer in Iran in 2004, as you mentioned earlier, and the fabricated, fake data helped keep Iran’s nuclear controversy alive. Would you please elaborate more on Israel’s involvement in providing the U.S. and the IAEA with the false and groundless data and how they complicated Iran’s nuclear dossier? A: Well, I think that evidence that Israel was fabricating these documents that the IAEA received in 2005 as well as later documents turned over to the IAEA directly by Israel in 2008 and 2009, according to Mohamed ElBaradei, is very strong, and there are several indicators that it was an Israeli job. One is that we know the Mujahedin-e-Khalq turned these documents over to German intelligence; that’s where they came from. A former German intelligence official gave me a detailed account of that in an interview I did with him last year for my book. So, that’s the first indication that it was an Israeli job, because the MEK, we know, has been used by Israel to provide the intelligence they didn’t want to be known as coming from Israel on more than one occasion. And of course the MEK has let its name to testimony to support the Israeli point of view on accusations of Iranian terrorism, specifically in the case of the Buenos Aires bombing of the AMIA community center in 1994. That’s one indicator. The second indicator is that we know the Israelis had a program in Mossad to influence the foreign governments and news media on Iran and that office sometimes basically claimed that there were documents that come from inside Iran that they would share with the governments and the press. So they had a special office for operations against Iran. So, I’m quite convinced that Israel was behind these documents.

mage: The video clip showing apparent firing from an annex to the hospital was actually shot during Israel’s 2008-09 “Operation Cast Lead,” and the audio clip accompanying it was from an incident unrelated to Al Wafa. (Screengrab: The Times of Israel)

A video distributed by the Israeli military in July suggesting that Palestinian fighters had fired from the Al Wafa Rehabilitation and Geriatric Hospital in Gaza City was not shot during the recent Israeli attack on Gaza, and both audio and video clips were manipulated to cover up the fact that they were from entirely different incidents, a Truthout investigation has revealed. The video, released by the Israel Defense Forces (IDF) on July 23, the same day Israeli airstrikes destroyed Al Wafa, was widely reported by pro-Israeli publications and websites as proving that the hospital was destroyed because Hamas had turned the hospital into a military facility. But the video clip showing apparent firing from an annex to the hospital was actually shot during Israel’s 2008-09 “Operation Cast Lead,” and the audio clip accompanying it was from an incident unrelated to Al Wafa. The misleading video was only the last in a series of IDF dissimulations about Al Wafa hospital that included false claims that Hamas rockets had been launched from the hospital grounds, or very near it, and that the hospital had been damaged by an attack on the launching site.

No one can possibly understand the precarious state of American democracy today without scrutinizing the often secret path the country was taken on by those in power from the 1950s to the present.Among the elemental figures in forging that path was Allen Dulles.He was the most powerful, and, it appears — the most sinister — director of the Central Intelligence Agency. Given that outfit’s history, that’s some accomplishment.Dulles’s job, simply put, was to hijack the US government to benefit the wealthy.Studying how this worked is a worthwhile pursuit. That’s why we decided to excerpt a few parts of David Talbot’s new Dulles biography, The Devil’s Chessboard. Perhaps nothing is more troubling than Dulles’s behavior around the time that John F. Kennedy was assassinated.

Although Kennedy had fired him in 1961, Dulles basically kept, de facto, running the CIA anyway, as Talbot notes. And, even more ominously, after Kennedy was killed in Dallas on Friday November 22, Dulles moved into The Farm, a secret CIA facility in Virginia, where he remained for the weekend — during which time the “suspect,” Lee Harvey Oswald, was killed, and a vast machinery began to create the “lone gunman” myth that has dominated our history books to the present.And that same machinery began to bury evidence that Oswald himself had deep connections into US intelligence.Throughout all this, it is clear, Dulles was no rogue operative. He was serving the interests of America’s corporate and war-making elites. And he went all out.The “former” CIA director was so determined to control the JFK death story spin, as Talbot chronicles below, that he even tried to strong-arm former president Harry Truman when the plain-spoken Missourian broadly hinted that he suspected the Agency was involved in Kennedy’s murder.

First part of a compressed Excerpt of Chapter 20, “For the Good of the Country” from The Devil’s Chessboard. Allen Dulles, the CIA, and the Rise of the American Secret Government. HarperCollins Publishers, 2015.

Bibi Netanyahu’s election, persistent violence through much of the Middle East and North Africa, and intensified efforts to forge a nuclear deal between the P5+1 and Iran topped the news here in Washington this week. But a much bigger story in terms of the future order of global politics was taking place in Europe and Beijing. The story was simply this: virtually all of the closest European allies of the United States, beginning with Britain, defied pressure from Washington by deciding to apply for founding membership in the Asian Infrastructure Investment Bank (AIIB). This Chinese initiative could quickly rival the World Bank and the Asia Development Bank as a major source of funding for big development projects across Eurasia. The new bank, which offers a serious multilateral alternative to the Western-dominated international financial institutions (IFIs) established in the post-World War II order, is expected to attract about three dozen initial members, including all of China’s Asian neighbors (with the possible exception of Japan). Australia, Russia, Saudi Arabia, and other Gulf states are also likely to join by the March 31 deadline set by Beijing for prospective co-founders to apply. Its $50 billion in initial capital is expected to double with the addition of new members, and that amount could quickly grow given China’s $3 trillion in foreign-exchange reserves. More details about the bank can be found in a helpful Q&A here at the Council on Foreign Relations website.

Along with the so-called BRICS bank—whose membership so far is limited to Brazil, Russia, India, China and South Africa—the AIIB poses a real “challenge to the existing global economic order,” which, of course, Western nations have dominated since the establishment of the International Monetary Fund (IMF) and the World Bank in the final days of World War II. As one unnamed European official told The New York Times, “We have moved from the world of 1945.” That Washington’s closest Western allies are now racing to join the AIIB over U.S. objections offers yet more evidence that the “unipolar moment” celebrated by neoconservatives and aggressive nationalists 25 years ago and then reaffirmed by the same forces after the 2003 Iraq invasion is well and truly. And yet, these same neoconservatives continue to insist that—but for Obama’s weakness and defeatism—the United States remains so powerful that it really doesn’t have to take account of anyone’s interests outside its borders except, maybe, Israel’s. (That Washington’s closest Western allies are now racing to join the new bank over U.S. objections could also presage a greater willingness to abandon the international sanctions regime against Iran if Washington is seen as responsible for the collapse of the P5+1 nuclear negotiations with Tehran. Granted, Iran’s economy—and its potential as a source of investment capital—is itsy-bitsy compared to China.)

Indeed, commentators are depicting US allies’ decision to join the AIIB (see here, here, and here as examples) as a debacle for U.S. diplomacy. The Wall Street Journal editorial board has predictably blamed Obama for defeat, calling it a “case study in declining American influence” (although it also defended Washington’s decision against joining and accused Britain of “appeasing China for commercial purposes.”) What the Journal predictably didn’t mention was a key reason why the administration did not seek membership in the new bank: there was virtually no chance that a Republican-dominated Congress would approve it. Indeed, one reason Beijing launched its initiative and so many of our allies in both Asia and Europe have decided to join is their frustration with Republicans in Congress who have refused to ratify a major reform package designed to give developing countries, including China, a little more voting power on the Western-dominated governing boards of the IMF and the World Bank. The Group of 20 (G20) biggest economic powers actually proposed this reform in 2010, and it doesn’t even reduce Washington’s voting power, which gives it an effective veto over major policy changes in both institutions. As a result of this intransigence, the United States is the only G-20 member that has failed to ratify the reforms, effectively blocking their implementation.