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Paul Merrell

Saudi King Abdullah dies, new ruler is Salman | Reuters - 0 views

  • Saudi Arabia's King Abdullah died early on Friday and his brother Salman became king, the royal court in the world's top oil exporter and birthplace of Islam said in a statement carried by state television. King Salman has named his half-brother Muqrin as his crown prince and heir.
  • Abdullah, thought to have been born in 1923, had ruled Saudi Arabia as king since 2006, but had run the country as de facto regent for a decade before that after his predecessor King Fahd suffered a debilitating stroke. At stake with the appointment of Salman as king is the future direction of the United States' most important Arab ally and self-appointed champion of Sunni Islam at a moment of unprecedented turmoil across the Middle East.
  • Abdullah played a guiding role in Saudi Arabia's support for Egypt's government after the military intervened in 2012, and drove his country's support for Syria's rebellion against President Bashar al-Assad.King Salman, thought to be 79, has been crown prince and defense minister since 2012. He was governor of Riyadh province for five decades before that. By immediately appointing Muqrin as his heir, subject to the approval of a family Allegiance Council, Salman has moved to avert widespread speculation about the immediate path of the royal succession in the world's top oil exporter.
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  • King Salman has been part of the ruling clique of princes for decades and is thought likely to continue the main thrusts of Saudi strategic policy, including maintaining the alliance with the United States and working towards energy market stability. During his five decades as Riyadh governor he was reputedly adept at managing the delicate balance of clerical, tribal and princely interests that determine Saudi policy, while maintaining good relations with the West.In the long term Saudi rulers have to manage the needs of a rapidly growing population plagued by structural unemployment, and an economy that remains overly dependent on oil revenue and undermined by lavish subsidies.Saudi Arabia, which holds more than a fifth of the world's crude oil, also exerts some influence over the world's 1.6 billion Muslims through its guardianship of Mecca and Medina, Islam's holiest sites.
  • Most senior members of the ruling al-Saud family are thought to favor similar positions on foreign and energy policy, but incoming kings have traditionally chosen to appoint new ministers to head top ministries like oil and finance. In a country where the big ministries are dominated by royals, successive kings have kept the oil portfolio reserved for commoners and insisted on maintaining substantial spare output capacity to help reduce market volatility.
Paul Merrell

Russia Just Pulled Itself Out Of The Petrodollar | Zero Hedge - 0 views

  • Back in November, before most grasped just how serious the collapse in crude was (and would become, as well as its massive implications), we wrote "How The Petrodollar Quietly Died, And Nobody Noticed", because for the first time in almost two decades, energy-exporting countries would pull their "petrodollars" out of world markets in 2015.  This empirical death of Petrodollar followed years of windfalls for oil exporters such as Russia, Angola, Saudi Arabia and Nigeria. Much of that money found its way into financial markets, helping to boost asset prices and keep the cost of borrowing down, through so-called petrodollar recycling. We added that in 2014 "the oil producers will effectively import capital amounting to $7.6 billion. By comparison, they exported $60 billion in 2013 and $248 billion in 2012, according to the following graphic based on BNP Paribas calculations."
  • The problem was compounded by its own positive feedback loop: as the last few weeks vividly demonstrated, plunging oil would lead to a further liquidation in foreign  reserves for the oil exporters who rushed to preserve their currencies, leading to even greater drops in oil as the viable producers rushed to pump out as much crude out of the ground as possible in a scramble to put the weakest producers out of business, and to crush marginal production. Call it Game Theory gone mad and on steroids. Ironically, when the price of crude started its self-reinforcing plunge, such a death would happen whether the petrodollar participants wanted it, or, as the case may be, were dragged into the abattoir kicking and screaming. It is the latter that seems to have taken place with the one country that many though initially would do everything in its power to have an amicable departure from the Petrodollar and yet whose divorce from the USD has quickly become a very messy affair, with lots of screaming and the occasional artillery shell. As Bloomberg reports Russia "may unseal its $88 billion Reserve Fund and convert some of its foreign-currency holdings into rubles, the latest government effort to prop up an economy veering into its worst slump since 2009." These are dollars which Russia would have otherwise recycled into US denominated assets. Instead, Russia will purchase even more Rubles and use the proceeds for FX and economic stabilization purposes. 
  • "Together with the central bank, we are selling a part of our foreign-currency reserves,” Finance Minister Anton Siluanov said in Moscow today. “We’ll get rubles and place them in deposits for banks, giving liquidity to the economy." Call it less than amicable divorce, call it what you will: what it is, is Russia violently leaving the ranks of countries that exchange crude for US paper.
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  • Bloomberg's dready summary of the US economy is generally spot on, and is to be expected when any nation finally leaves, voluntarily or otherwise, the stranglehold of a global reserve currency. What Bloomberg failed to account for is what happens to the remainder of the Petrodollar world. Here is what we said last time: Outside from the domestic economic impact within EMs due to the downward oil price shock, we believe that the implications for financial market liquidity via the reduced recycling of petrodollars should not be underestimated. Because energy exporters do not fully invest their export receipts and effectively ‘save’ a considerable portion of their income, these surplus funds find their way back into bank deposits (fuelling the loan market) as well as into financial markets and other assets. This capital has helped fund debt among importers, helping to boost overall growth as well as other financial markets liquidity conditions. ... [T]his year, we expect that incremental liquidity typically provided by such recycled flows will be markedly reduced, estimating that direct and other capital outflows from energy exporters will have declined by USD253bn YoY. Of course, these economies also receive inward capital, so on a net basis, the additional capital provided externally is much lower. This year, we expect that net capital flows will be negative for EM, representing the first net inflow of capital (USD8bn) for the first time in eighteen years. This compares with USD60bn last year, which itself was down from USD248bn in 2012. At its peak, recycled EM petro dollars amounted to USD511bn back in 2006. The declines seen since 2006 not only reflect the changed global environment, but also the propensity of underlying exporters to begin investing the money domestically rather than save. The implications for financial markets liquidity - not to mention related downward pressure on US Treasury yields – is negative.
  • Considering the wildly violent moves we have seen so far in the market confirming just how little liquidity is left in the market, and of course, the absolutely collapse in Treasury yields, with the 30 Year just hitting a record low, this prediction has been borne out precisely as expected. And now, we await to see which other country will follow Russia out of the Petrodollar next, and what impact that will have not only on the world's reserve currency, on US Treasury rates, and on the most financialized commodity as this chart demonstrates...
  • ... but on what is most important to developed world central planners everywhere: asset prices levels, and specifically what happens when the sellers emerge into what is rapidly shaping up as the most illiquid market in history.
Paul Merrell

| The Archived Columns of Conn M. Hallinan - 0 views

  • Almost before the votes were counted in the recent Greek elections, battle lines were being drawn all over Europe. While Alexis Tsipras, the newly elected Prime Minister from Greece’s victorious Syriza Party, was telling voters, “Greece is leaving behind catastrophic austerity, fear and autocratic government,” Jens Weidmann, president of the German Bundesbank, was warning the new government not to “make promises it cannot keep and the country cannot afford.”   On Feb. 12 those two points of view will collide when European Union (EU) heads of state gather in Brussels. Whether the storm blowing out of Southern Europe proves an irresistible force, or the European Council an immovable object, is not clear, but whatever the outcome, the continent is not likely to be the same after that meeting.   The Jan 25 victory of Greece’s leftwing Syriza Party was, on one hand, a beacon for indebted countries like Spain, Portugal, Italy and Ireland. On the other, it is a gauntlet for Germany, the Netherlands, Finland, and the “troika”—the European Central bank, the European Commission, and the International Monetary Fund (IMF)—the designers and enforcers of loans and austerity policies that have inflicted a catastrophic economic and social crisis on tens of millions of Europeans.
  • The troika’s policies were billed as “bailouts” for countries mired in debt—one largely caused by the 2008 financial speculation bubble over which indebted countries had little control—and as a way to restart economic growth. In return for the loans, the EU and the troika demanded massive cutbacks in social services, huge layoffs, privatization of pubic resources, and higher taxes.   However, the “bailouts” did not go toward stimulating economies, but rather to repay creditors, mostly large European banks. Out of the $266 billion loaned to Greece, 89 percent went to investors. After five years under the troika formula, Greece was the most indebted country in Europe. Gross national product dropped 26 percent, unemployment topped 27 percent (and over 50 percent for young people), and one-third of the population lost their health care coverage.   Given a chance to finally vote on the austerity strategy, Greeks overwhelmingly rejected the parties that went along with the troika and elected Syriza.
  • Gerry Adams of Sinn Fein—now the third largest party in the Irish Republic—hailed the vote as opening “up the real prospect of democratic change, not just for the people of Greece, but for citizens right across the EU.” Unemployment in Ireland is 10.7 percent, and tens of thousands of jobless young people have been forced to emigrate.   The German Social Democrats are generally supportive of the troika, but the Green Party hailed the Syriza victory and Die Linke Party members marched with signs reading, “We start with Greece. We change Europe.”   Italian Prime Minister Matteo Renzi—who has his own issues with the EU’s rigid approach to debt—hailed the Greek elections, and top aide Sandro Gozi said that Rome was ready to work with Syriza. The jobless rate in Italy is 13.4 percent, but 40 percent among youth.
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  • In short, there are a number of currents in the EU and a growing recognition even among supporters of the troika that prevailing approach to debt is not sustainable.   One should have no illusions that Syriza will easily sweep the policies of austerity aside, but there is a palpable feeling on the continent that a tide is turning. It did not start with the Greek elections, but with last May’s European Parliament elections, where anti-austerity parties made solid gains. While some right-wing parties that opportunistically donned a populist mantle also increased their vote, they could not do so where they were challenged by left anti-austerity parties. For instance, the right did well in Denmark, France, and Britain, but largely because there were no anti-austerity voices on the left in those races. Elsewhere the left generally defeated their rightist opponents.   If Syriza is to survive, however, it must deliver, and that will be a tall order given the power of its opponents.
  • The French Communist Party hailed the Greek elections as “Good news for the French people,” and Jean-Luc Melenchon of the Parti de Gauche called for a left-wing alliance similar to Syriza. French President Francois Hollande made a careful statement about “growth and stability,” but the Socialist leader is trying to quell a revolt by the left flank of his own party over austerity, and Paris is closer to Rome than it is to Berlin on the debt issue.   While the conservative government of Portugal was largely silent, Left Bloc Member of Parliament Marisa Matias told a rally, “A victory for Syriza is a victory for all of Europe.”
  • As convoluted as Greek politics are, the main obstacle for Syriza will come from other EU members and the Troika.   Finnish Prime Minister Alex Stubb made it clear “that we would say a resounding ‘no’ to forgive loans.” Merkel’s chief of staff, Peter Altmaier, says, “We have pursued a policy which works in many European countries, and we will stick to in the future.” IMF head Christine Lagarde chimed in that “there are rules that must be met in the euro zone,” and that “we cannot make special exceptions for specific countries.”   But Tsipras will, to paraphrase the poet Swinburne, not go entirely naked into Brussels, but “trailing clouds of glory.” Besides the solid support in Greece, a number of other countries and movements will be in the Belgian capital as well.   Syriza is closely aligned in Spain with Podemos, now polling ahead of the ruling conservative People’s Party. “2015 will be the year of change in Spain and Europe,” tweeted Podemos leader Pablo Iglesias in the aftermath of the election, “let’s go Alexis, let’s go!” Unemployment in Spain is 24 percent, and over 50 percent for young people.
  • At home, the Party will have to take on Greece’s wealthy tax-dodging oligarchs if it hopes to extend democracy and start refilling the coffers drained by the troika’s policies. It will also need to get a short-term cash infusion to meet its immediate obligations, but without giving in to yet more austerity demands by the troika.   For all the talk about Syriza being “extreme”—it stands for Coalition of the Radical Left— its program, as Greek journalist Kia Mistilis points, is “classic ‘70s social democracy”: an enhanced safety net, debt moratorium, minimum wage raise, and economic stimulus.   Syriza is pushing for a European conference modeled on the 1953 London Debt Agreement that pulled Germany out of debt after World War II and launched the “wirtschaftswunder,”or economic miracle that created modern Germany. The Agreement waved more than 50 percent of Germany’s debt, stretched out payments over 50 years, and made repayment of loans dependent on the country running a trade surplus.
  • The centerpiece of Syriza’s Thessaloniki program is its “four pillars of national reconstruction,” which include “confronting the humanitarian crisis,” “restarting the economy and promoting tax justice,” “regaining employment,” and “transforming the political system to deepen democracy.”   Each of the “pillars” is spelled out in detail, including costs, income and savings, and, while it is certainly a major break with the EU’s current model, it is hardly the October Revolution.   The troika’s austerity model has been quite efficient at smashing trade unions, selling off public resources at fire sale prices, lowering wages and starving social services. As a statement by the International Union of Food Workers argues, “Austerity is not the produce of a deficient grasp of macroeconomics or a failure of ‘social dialogue,’ it is a conscious blueprint for expanding corporate power.”
  • Under an austerity regime, the elites do quite well, and they are not likely to yield without a fight.   But Syriza is poised to give them one, and “the little party that could” is hardly alone. Plus a number of important elections are looming in Estonia, Finland, and Spain that will give anti-austerity forces more opportunities to challenge the policies of Merkel and the troika.   The spectre haunting Europe may not be the one that Karl Marx envisioned, but it is putting a scare into the halls of the rich and powerful.
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    I'm struck again by the poltical brilliance of Russia's decision to drop the South Stream Pipeline in favor of a new pipeline through Turkey to the border with Greece. Russia has gained an ally in Greece in terms of fighting economic sanctions on Russia and reinstating trade between Russia and the EU. Greece has veto power in the EU on any new sanctions or renewal of existing sanctions, at least most of which have sunset provisions. Russia also made allies of two NATO members, Greece and Turkey. And Greece is positioned by its threat of refusal to repay debt to the troika banksters to break the absolute hold the banksters have on monetary policy in the Eurozone. Russia magnifies that threat by saying that it is open to a proposal to bail out the Greek government. Not yet known is whether a condition would be abandoning the Euro as Greece's own currency. Greece might conceivably reinstate the drachma with its value pegged to a basket of foreign currencies, including the ruble and yuan. In other words, Greece leaving the EU and NATO and joining BRICS is conceivable.
Paul Merrell

Apartheid Forever: Israel's Netanyahu rules out Palestinian Citizenship Rights | Inform... - 0 views

  • Israeli Prime Minister Binyamin Netanyahu, under extreme pressure over the real possibility that he will lose the March 17 elections, has made a powerful appeal to his far right wing constituency by openly admitting that he will never allow a Palestinian state and that he intends to flood Israeli squatters into East Jerusalem and its environs to make sure this Occupied territory never returns to the Palestinians.Millions of Palestinians whose families were violently expelled from their homes by Jewish settlers in Mandate Palestine in 1947-48 remain stateless. These include the people of Gaza, the West Bank (four million) and a million or more in diasporas in Lebanon, Syria, and other countries. A million Palestinians are now citizens in Israel, and others have rights of citizenship in far-flung places like Chile and Honduras, as well as the United States. But I figure five million at least remain stateless.
  • Statelessness is rare in today’s world, a result of reforms initiated by the international community after the horrors of World War II and its preceding decades. Franco rendered many on the Spanish Left stateless after his victory in the Civil War in 1939 (not to mention massacring tens of thousands of them). The White Russians lost citizenship after their revolt against the Communists failed. The Nazis took citizenship rights away from Jews, Gypsies and others in Europe. In fact, the Holocaust was made practically possible in part by the denial of citizenship to Jews, which left them with no access to courts or other levers of social power that might have combated the monstrous Nazi plans for genocide. Millions were stateless in the 1930s and 1940s, and their lack of citizenship rights often exposed them to ethnic cleansing or loss of property and displacement.
  • The Palestinians are the last major stateless population. Stateless people do not have rights as most people understand the term. Their situation in some ways resembles slavery, since slaves also were denied the rights of citizenship. Stateless people’s property is insecure, since people with citizenship rights have better access to courts and to ruling authorities. Palestinians never really know what they own, and Israeli squatters routinely steal their property with impunity. Squatters dig tube wells deeper than those of the Palestinian villagers, lowering aquifers and causing Palestinian wells to dry up. Squatters go on wilding attacks, chopping down entire olive orchards (a prime source of Palestinian income) or beating up Palestinians. If Palestinians assemble peacefully to protest the loss of their farms to ever-expanding squatter settlements, the Israel army arrests them, including, often, children, who are taken away from their families and put in jail. Palestinians can be held for long periods without being charged. The prisoners are sometimes tortured.
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  • Netanyahu and the Israeli right-of-center say they want to keep Palestinians homeless and without citizenship rights in a state because they fear a Palestinian state will make claims on Israel and present a security challenge. Netanyahu said Sunday that if Israel relinquished the West Bank it would become a bastion of Muslim radicalism (but West Bankers are substantially more secular than the Jewish population of West Jerusalem).But in fact, Netanyahu and the right are dedicated to Greater Israel, to annexing the West Bank territory and finding a way to expel the Palestinians from it. The Palestinians are not a security challenge– they are like the guard at a bank getting in the way of bank robbers. The bank robbers feel a need to knock him out or kill him, remove him from the scene.
  • ut it is shameful to have Israel preside over 4 million stateless people forever. This is Apartheid. And Netanyahu has just made Apartheid the official policy of Israel, just as South African leader P.W. Botha dedicated himself to making black South Africans stateless and without the rights of citizenship. The only fig leaf Israel had for its Apartheid was the farce of the “peace process” and a pro forma ritual invocation of a “future Palestinian state.” Now Netanyahu has ripped off the fig leaf and stands naked before the world. Botha was called by his victims the “Great Crocodile.” It would be better epithet for Netanyahu than “Bibi.”
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    Under article 15 of the 1948 Universal Declaration of Human Rights, a treaty that Israel ratified: "(1) Everyone has the right to a nationality. "(2) No one shall be arbitrarily deprived of his nationality nor denied the right to change his nationality."  
Paul Merrell

OPEC Unlikely to Cut Oil Production, Venezuela's PDVSA Predicts "Difficult Times Ahead"... - 0 views

  • negotiations with Mexico, Russia and Saudi Arabia have failed to reach a joint pledge for OPEC nations to cut oil production. Ramirez, who was replaced as president of state-owned oil company PDVSA in September but continues to be Venezuela’s OPEC representative, met his counterparts on Tuesday in Vienna to kickstart the discussion on the plummeting price of oil before Thursday’s hugely significant OPEC summit. Between the United States shale boom and slower economic growth in Europe and China, the price of Venezuelan heavy crude dove from $99 per barrel in June to about $69 last week, prompting Ramirez’s diplomatic tour.
  • OPEC members Venezuela, Iraq, Ecuador, and Nigeria have all advocated for a cut in production as the quickest way to drive market prices back up. Statistics uphold this argument, considering OPEC estimations that global supply will exceed demand by more than 1 million barrels per day (bpd) in the first half of next year. But after Tuesday’s Vienna meeting Saudi Arabian Oil Minister Ali al-Naimi told reporters that the Gulf Cooperation Council (GCC), which includes Saudi Arabia, Kuwait, Qatar and the United Arab Emirates, had reached a “consensus” not to do so. Al-Naimi believes the twelve-nation OPEC group, of which Saudi Arabia is the largest producer, will follow suit. "We are very confident that OPEC will have a unified position,” he said, in reference to tomorrow’s summit. Meanwhile, Russia’s most influential oil official, state-firm Rosneft’s president Igor Sechin, surprised some and quelled rumors by announcing the largest producing non-OPEC nation had no intention of reducing their output, either. Not even, Sechin said, if oil “falls under $60 a barrel.”
  • The Russian company recently signed a contract with PDVSA for the purchase of 1.6 million tons of petroleum and 9 million tons of derivatives of crude over the next five years. While it makes sense that the GCC prioritize market share over barrel price, to a certain extent, Russian government coffers have already been hard hit by dropping prices, causing Sechin’s comment to raise some eyebrows. Indeed, many analysts claim the oil glut of the early 1980’s (which almost bankrupt Venezuela) contributed to the collapse of the Soviet Union.
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  • However, oil makes up 97 percent of Venezuela’s export earnings, and the market shift has already caused the country a 30 percent loss in foreign income, Maduro said last week. According to Reuters, PDVSA has put the possible sale of U.S. refinery Citgo Petroleum Corp back on the table. People close to the matter have reported that Lazard Ltd, the investment bank hired by PDVSA to explore the sale, has set a late-December deadline for new offers, despite Venezuelan finance minister ruling it out last month. Citgo runs three refineries in the United States, totaling an estimated value of up to $10 billion.
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    The headscratcher for me in this article is Russia's position that it will maintain production even if crude oil prices drop below $60 per barrel. The dropping price has delivered a huge hit on the Russian economy already. These factors cause me to wonder if China has pledged funds to help Russia ride out the U.S./GCC assault on oil prices.  
Paul Merrell

Ukraine Admits Its Gold Is Gone: "There Is Almost No Gold Left In The Central Bank Vaul... - 0 views

  • Back in March, at a time when the IMF reported that Ukraine's official gold holdings as of the end of February, so just as the State Department-facilitated coup against former president Victor Yanukovich was concluding, amounted to 42.3 tonnes or 8% of reserves...
  • ... and notably under the previous "hated" president, Ukraine gold's reserves had constantly increased hitting a record high just before the presidential coup...
  • ... we reported of a strange incident that took place just after the Ukraine presidential coup, namely that according to at least one source, "in a mysterious operation under the cover of night, Ukraine's gold reserves were promptly loaded onboard an unmarked plane, which subsequently took the gold to the US." To wit: Tonight, around at 2:00 am, an unregistered transport plane took off took off from Boryspil airport. According to Boryspil staff, prior to the plane's appearance, four trucks and two cargo minibuses arrived at the airport all with their license plates missing. Fifteen people in black uniforms, masks and body armor stepped out, some armed with machine guns. These people loaded the plane with more than forty heavy boxes.   After this, several mysterious men arrived and also entered the plane. The loading was carried out in a hurry. After unloading, the plateless cars immediately left the runway, and the plane took off on an emergency basis.   Airport officials who saw this mysterious "special operation" immediately notified the administration of the airport, which however strongly advised them "not to meddle in other people's business."   Later, the editors were called by one of the senior officials of the former Ministry of Income and Fees, who reported that, according to him, tonight on the orders of one of the "new leaders" of Ukraine, all the gold reserves of the Ukraine were taken to the United States.
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  • Needless to say there was no official confirmation of any of this taking place, and in fact our report, in which we mused if the "price of Ukraine's liberation" was the handover of its gold to the Fed at a time when Germany was actively seeking to repatriate its own physical gold located at the bedrock of the NY Fed, led to the usual mainstream media mockery. Until now. In an interview on Ukraine TV, none other than the head of the Ukraine Central Bank made the stunning admission that "in the vaults of the central bank there is almost no gold left. There is a small amount of gold bullion left, but it's just 1% of reserves."
  • As Ukraina further reports, this stunning revelation means that not only has Ukraine been quietly depleting its gold throughout the year, but that the latest official number, according to which Ukraine gold was 8 times greater than the reported 1%, was fabricated, and that the real number is about 90% lower.
  • Oddly enough there was no official gold reduction just prior to the time when Victoria "Fuck the EU" Nuland was planning Yanukovich's ouster, and as shown above, quite the contrary. It is a little more odd that it was during the period when Ukraine was "supported" by its western allies that several billion dollars worth of physical gold - the people's gold - just "vaporized." In any event, now that the disappearance of Ukraine's gold has been confirmed, perhaps it is time to refresh the "unconfirmed" story that a little after the current Ukraine regime took power the bulk of Ukraine's gold was taken to the United States. As of this writing, The NY Fed has still not answered our March request for a comment whether Ukraine's gold has been redomiciled at the gold vault located some 80 feet below Liberty 33.
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    Pillage is a war crime.
Paul Merrell

Iran: Interim Nuclear Agreement, and More from CRS - 0 views

  • New products from the Congressional Research Service that Congress has withheld from online public distribution include the following. Iran: Interim Nuclear Agreement and Talks on a Comprehensive Accord, November 26, 2014
  • The Corporate Income Tax System: Overview and Options for Reform, December 1, 2014
  • What Is the Current State of the Economic Recovery?, CRS Insights, December 1, 2014
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  • Jordan: Background and U.S. Relations, December 2, 2014 Afghanistan: Post-Taliban Governance, Security, and U.S. Policy, December 2, 2014
Paul Merrell

The Collapse of Europe? « LobeLog - 0 views

  • And yet, for all this success, the European project is currently teetering on the edge of failure. Growth is anemic at best and socio-economic inequality is on the rise. The countries of Eastern and Central Europe, even relatively successful Poland, have failed to bridge the income gap with the richer half of the continent. And the highly indebted periphery is in revolt. Politically, the center may not hold and things seem to be falling apart. From the left, parties like Syriza in Greece are challenging the EU’s prescriptions of austerity. From the right, Euroskeptic parties are taking aim at the entire quasi-federal model. Racism and xenophobia are gaining ever more adherents, even in previously placid regions like Scandinavia. Perhaps the primary social challenge facing Europe at the moment, however, is the surging popularity of Islamophobia, the latest “socialism of fools.” From the killings at the Munich Olympics in 1972 to the recent attacks at Charlie Hebdo and a kosher supermarket in Paris, wars in the Middle East have long inspired proxy battles in Europe. Today, however, the continent finds itself ever more divided between a handful of would-be combatants who claim the mantle of true Islam and an ever-growing contingent who believe Islam — all of Islam — has no place in Europe.
  • Europeans are beginning to realize that Margaret Thatcher was wrong and there are alternatives — to liberalism and European integration. The most notorious example of this new illiberalism is Hungary. On July 26, 2014, in a speech to his party faithful, Prime Minister Viktor Orban confided that he intended a thorough reorganization of the country. The reform model Orban had in mind, however, had nothing to do with the United States, Britain, or France. Rather, he aspired to create what he bluntly called an “illiberal state” in the very heart of Europe, one strong on Christian values and light on the libertine ways of the West. More precisely, what he wanted was to turn Hungary into a mini-Russia or mini-China. “Societies founded upon the principle of the liberal way,” Orban intoned, “will not be able to sustain their world-competitiveness in the following years, and more likely they will suffer a setback, unless they will be able to substantially reform themselves.” He was also eager to reorient to the east, relying ever less on Brussels and ever more on potentially lucrative markets in and investments from Russia, China, and the Middle East.
  • For some, the relationship between Hungary and the rest of Europe is reminiscent of the moment in the 1960s when Albania fled the Soviet bloc and, in an act of transcontinental audacity, aligned itself with Communist China. But Albania was then a marginal player and China still a poor peasant country. Hungary is an important EU member and China’s illiberal development model, which has vaulted it to the top of the global economy, now has increasing international influence. This, in other words, is no Albanian mouse that roared. A new illiberal axis connecting Budapest to Beijing and Moscow would have far-reaching implications.
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  • That July speech represented a truly Oedipal moment, for Orban was eager to drive a stake right through the heart of the ideology that had fathered him. As a young man more than 25 years earlier, he had led the Alliance of Young Democrats — Fidesz — one of the region’s most promising liberal parties. In the intervening years, sensing political opportunity elsewhere on the political spectrum, he had guided Fidesz out of the Liberal International and into the European People’s Party, alongside German Chancellor Angela Merkel’s Christian Democrats. Now, however, he was on the move again and his new role model wasn’t Merkel, but Russian President Vladimir Putin and his iron-fisted style of politics. Given the disappointing performance of liberal economic reforms and the stinginess of the EU, it was hardly surprising that Orban had decided to hedge his bets by looking east. The European Union has responded by harshly criticizing Orban’s government for pushing through a raft of constitutional changes that restrict the media and compromise the independence of the judiciary. Racism and xenophobia are on the uptick in Hungary, particularly anti-Roma sentiment and anti-Semitism. And the state has taken steps to reassert control over the economy and impose controls on foreign investment.
  • The Hungarian prime minister, after all, has many European allies in his Euroskeptical project. Far right parties are climbing in the polls across the continent. With 25% of the votes, Marine Le Pen’s National Front, for instance, topped the French elections for the European parliament last May. In local elections in 2014, it also seized 12 mayoralties, and polls show that Le Pen would win the 2017 presidential race if it were held today. In the wake of the Charlie Hebdo shootings, the National Front has been pushing a range of policies from reinstating the death penalty to closing borders that would deliberately challenge the whole European project. In Denmark, the far-right People’s Party also won the most votes in the European parliamentary elections. In November, it topped opinion polls for the first time. The People’s Party has called for Denmark to slam shut its open-door policy toward refugees and re-introduce border controls. Much as the Green Party did in Germany in the 1970s, groupings like Great Britain’s Independence Party, the Finns Party, and even Sweden’s Democrats are shattering the comfortable conservative-social democratic duopoly that has rotated in power throughout Europe during the Cold War and in its aftermath.
  • The Islamophobia that has surged in the wake of the murders in France provides an even more potent arrow in the quiver of these parties as they take on the mainstream. The sentiment currently expressed against Islam — at rallies, in the media, and in the occasional criminal act — recalls a Europe of long ago, when armed pilgrims set out on a multiple crusades against Muslim powers, when early nation-states mobilized against the Ottoman Empire, and when European unity was forged not out of economic interest or political agreement but as a “civilizational” response to the infidel.
  • Euroskepticism doesn’t only come from the right side of the political spectrum. In Greece, the Syriza party has challenged liberalism from the left, as it leads protests against EU and International Monetary Fund austerity programs that have plunged the population into recession and revolt. As elsewhere in Europe, the far right might have taken advantage of this economic crisis, too, had the government not arrested the Golden Dawn leadership on murder and other charges. In parliamentary elections on Sunday, Syriza won an overwhelming victory, coming only a couple seats short of an absolute majority. In a sign of the ongoing realignment of European politics, that party then formed a new government not with the center-left, but with the right-wing Independent Greeks, which is similarly anti-austerity but also skeptical of the EU and in favor of a crackdown on illegal immigration.
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    Greece and Hungary moving to the right *and toward Russia and China.* The Syrza Party won big in Greece on Sunday. 
Paul Merrell

British Army faces radical shakeup | UK news | The Guardian - 0 views

  • After the huge mistakes in Iraq and Afghanistan, and confronted now by new threats amid extraordinary geopolitical shifts, senior British army officers under the incoming chief of the general staff, Sir Nick Carter, are planning potentially far-reaching reforms. An eyecatching centrepiece is the formation of the 77th Brigade, inspired by the Chindits, the guerrilla unit which operated behind enemy lines during the Burma campaign against the Japanese during the second world war.
  • The emphasis now is not so much on military force but "political warfare", including psychological operations (psyops), deception, and media operations (hence the numerous references in recent stories by defence journalists to "facebook warriors"). The new Chindit brigade, consisting of reservists and civilian specialists as well as regular troops, is designed to help the army win non-kinetic battles in an age of internet warfare and cyber attacks. The unit would "play a key part in enabling the UK to fight in the information age", said an army spokesman.
  • Disrupting communications and spreading and countering sophisticated propaganda will be the new Chindits' priorities but the environment they will operate in will be very different from that of the Burmese jungle. 1,500 or so new Chindits, who will based near Newbury in Berkshire, could provide just the kind of help Ukraine was asking for on Monday – jamming the communications of pro-Russian, and Russian, forces in the east of the country. Carter and his advisers, meanwhile, are planning to streamline the army's hierarchy, culling perhaps a third of its 500 colonels and 200 brigadiers and generals. No senior officers were sacked over Iraq or Afghanistan. The idea is to change the culture of the top brass, to encourage individuals who have demonstrated their ability – and confidence – to understand the new world, of geopolitics as well as of conflict.
Paul Merrell

Edward Snowden: A 'Nation' Interview | The Nation - 0 views

  • Snowden: That’s the key—to maintain the garden of liberty, right? This is a generational thing that we must all do continuously. We only have the rights that we protect. It doesn’t matter what we say or think we have. It’s not enough to believe in something; it matters what we actually defend. So when we think in the context of the last decade’s infringements upon personal liberty and the last year’s revelations, it’s not about surveillance. It’s about liberty. When people say, “I have nothing to hide,” what they’re saying is, “My rights don’t matter.” Because you don’t need to justify your rights as a citizen—that inverts the model of responsibility. The government must justify its intrusion into your rights. If you stop defending your rights by saying, “I don’t need them in this context” or “I can’t understand this,” they are no longer rights. You have ceded the concept of your own rights. You’ve converted them into something you get as a revocable privilege from the government, something that can be abrogated at its convenience. And that has diminished the measure of liberty within a society.
  • From the very beginning, I said there are two tracks of reform: there’s the political and the technical. I don’t believe the political will be successful, for exactly the reasons you underlined. The issue is too abstract for average people, who have too many things going on in their lives. And we do not live in a revolutionary time. People are not prepared to contest power. We have a system of education that is really a sort of euphemism for indoctrination. It’s not designed to create critical thinkers. We have a media that goes along with the government by parroting phrases intended to provoke a certain emotional response—for example, “national security.” Everyone says “national security” to the point that we now must use the term “national security.” But it is not national security that they’re concerned with; it is state security. And that’s a key distinction. We don’t like to use the phrase “state security” in the United States because it reminds us of all the bad regimes. But it’s a key concept, because when these officials are out on TV, they’re not talking about what’s good for you. They’re not talking about what’s good for business. They’re not talking about what’s good for society. They’re talking about the protection and perpetuation of a national state system. I’m not an anarchist. I’m not saying, “Burn it to the ground.” But I’m saying we need to be aware of it, and we need to be able to distinguish when political developments are occurring that are contrary to the public interest. And that cannot happen if we do not question the premises on which they’re founded. And that’s why I don’t think political reform is likely to succeed. [Senators] Udall and Wyden, on the intelligence committee, have been sounding the alarm, but they are a minority.
  • The Nation: Every president—and this seems to be confirmed by history—will seek to maximize his or her power, and will see modern-day surveillance as part of that power. Who is going to restrain presidential power in this regard? Snowden: That’s why we have separate and co-equal branches. Maybe it will be Congress, maybe not. Might be the courts, might not. But the idea is that, over time, one of these will get the courage to do so. One of the saddest and most damaging legacies of the Bush administration is the increased assertion of the “state secrets” privilege, which kept organizations like the ACLU—which had cases of people who had actually been tortured and held in indefinite detention—from getting their day in court. The courts were afraid to challenge executive declarations of what would happen. Now, over the last year, we have seen—in almost every single court that has had this sort of national-security case—that they have become markedly more skeptical. People at civil-liberties organizations say it’s a sea change, and that it’s very clear judges have begun to question more critically assertions made by the executive. Even though it seems so obvious now, it is extraordinary in the context of the last decade, because courts had simply said they were not the best branch to adjudicate these claims—which is completely wrong, because they are the only nonpolitical branch. They are the branch that is specifically charged with deciding issues that cannot be impartially decided by politicians. The power of the presidency is important, but it is not determinative. Presidents should not be exempted from the same standards of reason and evidence and justification that any other citizen or civil movement should be held to.
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  • The Nation: Explain the technical reform you mentioned. Snowden: We already see this happening. The issue I brought forward most clearly was that of mass surveillance, not of surveillance in general. It’s OK if we wiretap Osama bin Laden. I want to know what he’s planning—obviously not him nowadays, but that kind of thing. I don’t care if it’s a pope or a bin Laden. As long as investigators must go to a judge—an independent judge, a real judge, not a secret judge—and make a showing that there’s probable cause to issue a warrant, then they can do that. And that’s how it should be done. The problem is when they monitor all of us, en masse, all of the time, without any specific justification for intercepting in the first place, without any specific judicial showing that there’s a probable cause for that infringement of our rights.
  • Since the revelations, we have seen a massive sea change in the technological basis and makeup of the Internet. One story revealed that the NSA was unlawfully collecting data from the data centers of Google and Yahoo. They were intercepting the transactions of data centers of American companies, which should not be allowed in the first place because American companies are considered US persons, sort of, under our surveillance authorities. They say, “Well, we were doing it overseas,” but that falls under a different Reagan-era authority: EO 12333, an executive order for foreign-intelligence collection, as opposed to the ones we now use domestically. So this one isn’t even authorized by law. It’s just an old-ass piece of paper with Reagan’s signature on it, which has been updated a couple times since then. So what happened was that all of a sudden these massive, behemoth companies realized their data centers—sending hundreds of millions of people’s communications back and forth every day—were completely unprotected, electronically naked. GCHQ, the British spy agency, was listening in, and the NSA was getting the data and everything like that, because they could dodge the encryption that was typically used. Basically, the way it worked technically, you go from your phone to Facebook.com, let’s say—that link is encrypted. So if the NSA is trying to watch it here, they can’t understand it. But what these agencies discovered was, the Facebook site that your phone is connected to is just the front end of a larger corporate network—that’s not actually where the data comes from. When you ask for your Facebook page, you hit this part and it’s protected, but it has to go on this long bounce around the world to actually get what you’re asking for and go back. So what they did was just get out of the protected part and they went onto the back network. They went into the private network of these companies.
  • The Nation: The companies knew this? Snowden: Companies did not know it. They said, “Well, we gave the NSA the front door; we gave you the PRISM program. You could get anything you wanted from our companies anyway—all you had to do was ask us and we’re gonna give it to you.” So the companies couldn’t have imagined that the intelligence communities would break in the back door, too—but they did, because they didn’t have to deal with the same legal process as when they went through the front door. When this was published by Barton Gellman in The Washington Post and the companies were exposed, Gellman printed a great anecdote: he showed two Google engineers a slide that showed how the NSA was doing this, and the engineers “exploded in profanity.” Another example—one document I revealed was the classified inspector general’s report on a Bush surveillance operation, Stellar Wind, which basically showed that the authorities knew it was unlawful at the time. There was no statutory basis; it was happening basically on the president’s say-so and a secret authorization that no one was allowed to see. When the DOJ said, “We’re not gonna reauthorize this because it is not lawful,” Cheney—or one of Cheney’s advisers—went to Michael Hayden, director of the NSA, and said, “There is no lawful basis for this program. DOJ is not going to reauthorize it, and we don’t know what we’re going to do. Will you continue it anyway on the president’s say-so?” Hayden said yes, even though he knew it was unlawful and the DOJ was against it. Nobody has read this document because it’s like twenty-eight pages long, even though it’s incredibly important.
  • The big tech companies understood that the government had not only damaged American principles, it had hurt their businesses. They thought, “No one trusts our products anymore.” So they decided to fix these security flaws to secure their phones. The new iPhone has encryption that protects the contents of the phone. This means if someone steals your phone—if a hacker or something images your phone—they can’t read what’s on the phone itself, they can’t look at your pictures, they can’t see the text messages you send, and so forth. But it does not stop law enforcement from tracking your movements via geolocation on the phone if they think you are involved in a kidnapping case, for example. It does not stop law enforcement from requesting copies of your texts from the providers via warrant. It does not stop them from accessing copies of your pictures or whatever that are uploaded to, for example, Apple’s cloud service, which are still legally accessible because those are not encrypted. It only protects what’s physically on the phone. This is purely a security feature that protects against the kind of abuse that can happen with all these things being out there undetected. In response, the attorney general and the FBI director jumped on a soap box and said, “You are putting our children at risk.”
  • The Nation: Is there a potential conflict between massive encryption and the lawful investigation of crimes? Snowden: This is the controversy that the attorney general and the FBI director were trying to create. They were suggesting, “We have to be able to have lawful access to these devices with a warrant, but that is technically not possible on a secure device. The only way that is possible is if you compromise the security of the device by leaving a back door.” We’ve known that these back doors are not secure. I talk to cryptographers, some of the leading technologists in the world, all the time about how we can deal with these issues. It is not possible to create a back door that is only accessible, for example, to the FBI. And even if it were, you run into the same problem with international commerce: if you create a device that is famous for compromised security and it has an American back door, nobody is gonna buy it. Anyway, it’s not true that the authorities cannot access the content of the phone even if there is no back door. When I was at the NSA, we did this every single day, even on Sundays. I believe that encryption is a civic responsibility, a civic duty.
  • The Nation: Some years ago, The Nation did a special issue on patriotism. We asked about a hundred people how they define it. How do you define patriotism? And related to that, you’re probably the world’s most famous whistleblower, though you don’t like that term. What characterization of your role do you prefer? Snowden: What defines patriotism, for me, is the idea that one rises to act on behalf of one’s country. As I said before, that’s distinct from acting to benefit the government—a distinction that’s increasingly lost today. You’re not patriotic just because you back whoever’s in power today or their policies. You’re patriotic when you work to improve the lives of the people of your country, your community and your family. Sometimes that means making hard choices, choices that go against your personal interest. People sometimes say I broke an oath of secrecy—one of the early charges leveled against me. But it’s a fundamental misunderstanding, because there is no oath of secrecy for people who work in the intelligence community. You are asked to sign a civil agreement, called a Standard Form 312, which basically says if you disclose classified information, they can sue you; they can do this, that and the other. And you risk going to jail. But you are also asked to take an oath, and that’s the oath of service. The oath of service is not to secrecy, but to the Constitution—to protect it against all enemies, foreign and domestic. That’s the oath that I kept, that James Clapper and former NSA director Keith Alexander did not. You raise your hand and you take the oath in your class when you are on board. All government officials are made to do it who work for the intelligence agencies—at least, that’s where I took the oath.
  • The Nation: Creating a new system may be your transition, but it’s also a political act. Snowden: In case you haven’t noticed, I have a somewhat sneaky way of effecting political change. I don’t want to directly confront great powers, which we cannot defeat on their terms. They have more money, more clout, more airtime. We cannot be effective without a mass movement, and the American people today are too comfortable to adapt to a mass movement. But as inequality grows, the basic bonds of social fraternity are fraying—as we discussed in regard to Occupy Wall Street. As tensions increase, people will become more willing to engage in protest. But that moment is not now.
  • The Nation: You really think that if you could go home tomorrow with complete immunity, there wouldn’t be irresistible pressure on you to become a spokesperson, even an activist, on behalf of our rights and liberties? Indeed, wouldn’t that now be your duty? Snowden: But the idea for me now—because I’m not a politician, and I do not think I am as effective in this way as people who actually prepare for it—is to focus on technical reform, because I speak the language of technology. I spoke with Tim Berners-Lee, the guy who invented the World Wide Web. We agree on the necessity for this generation to create what he calls the Magna Carta for the Internet. We want to say what “digital rights” should be. What values should we be protecting, and how do we assert them? What I can do—because I am a technologist, and because I actually understand how this stuff works under the hood—is to help create the new systems that reflect our values. Of course I want to see political reform in the United States. But we could pass the best surveillance reforms, the best privacy protections in the history of the world, in the United States, and it would have zero impact internationally. Zero impact in China and in every other country, because of their national laws—they won’t recognize our reforms; they’ll continue doing their own thing. But if someone creates a reformed technical system today—technical standards must be identical around the world for them to function together.
  • As for labeling someone a whistleblower, I think it does them—it does all of us—a disservice, because it “otherizes” us. Using the language of heroism, calling Daniel Ellsberg a hero, and calling the other people who made great sacrifices heroes—even though what they have done is heroic—is to distinguish them from the civic duty they performed, and excuses the rest of us from the same civic duty to speak out when we see something wrong, when we witness our government engaging in serious crimes, abusing power, engaging in massive historic violations of the Constitution of the United States. We have to speak out or we are party to that bad action.
  • The Nation: Considering your personal experience—the risks you took, and now your fate here in Moscow—do you think other young men or women will be inspired or discouraged from doing what you did? Snowden: Chelsea Manning got thirty-five years in prison, while I’m still free. I talk to people in the ACLU office in New York all the time. I’m able to participate in the debate and to campaign for reform. I’m just the first to come forward in the manner that I did and succeed. When governments go too far to punish people for actions that are dissent rather than a real threat to the nation, they risk delegitimizing not just their systems of justice, but the legitimacy of the government itself. Because when they bring political charges against people for acts that were clearly at least intended to work in the public interest, they deny them the opportunity to mount a public-interest defense. The charges they brought against me, for example, explicitly denied my ability to make a public-interest defense. There were no whistleblower protections that would’ve protected me—and that’s known to everybody in the intelligence community. There are no proper channels for making this information available when the system fails comprehensively.
  • The government would assert that individuals who are aware of serious wrongdoing in the intelligence community should bring their concerns to the people most responsible for that wrongdoing, and rely on those people to correct the problems that those people themselves authorized. Going all the way back to Daniel Ellsberg, it is clear that the government is not concerned with damage to national security, because in none of these cases was there damage. At the trial of Chelsea Manning, the government could point to no case of specific damage that had been caused by the massive revelation of classified information. The charges are a reaction to the government’s embarrassment more than genuine concern about these activities, or they would substantiate what harms were done. We’re now more than a year since my NSA revelations, and despite numerous hours of testimony before Congress, despite tons of off-the-record quotes from anonymous officials who have an ax to grind, not a single US official, not a single representative of the United States government, has ever pointed to a single case of individualized harm caused by these revelations. This, despite the fact that former NSA director Keith Alexander said this would cause grave and irrevocable harm to the nation. Some months after he made that statement, the new director of the NSA, Michael Rogers, said that, in fact, he doesn’t see the sky falling. It’s not so serious after all.
  • The Nation: You also remind us of [Manhattan Project physicist] Robert Oppenheimer—what he created and then worried about. Snowden: Someone recently talked about mass surveillance and the NSA revelations as being the atomic moment for computer scientists. The atomic bomb was the moral moment for physicists. Mass surveillance is the same moment for computer scientists, when they realize that the things they produce can be used to harm a tremendous number of people. It is interesting that so many people who become disenchanted, who protest against their own organizations, are people who contributed something to them and then saw how it was misused. When I was working in Japan, I created a system for ensuring that intelligence data was globally recoverable in the event of a disaster. I was not aware of the scope of mass surveillance. I came across some legal questions when I was creating it. My superiors pushed back and were like, “Well, how are we going to deal with this data?” And I was like, “I didn’t even know it existed.” Later, when I found out that we were collecting more information on American communications than we were on Russian communications, for example, I was like, “Holy shit.” Being confronted with the realization that work you intended to benefit people is being used against them has a radicalizing effect.
  • The Nation: We have a sense, or certainly the hope, we’ll be seeing you in America soon—perhaps sometime after this Ukrainian crisis ends. Snowden: I would love to think that, but we’ve gone all the way up the chain at all the levels, and things like that. A political decision has been made not to irritate the intelligence community. The spy agencies are really embarrassed, they’re really sore—the revelations really hurt their mystique. The last ten years, they were getting the Zero Dark Thirty treatment—they’re the heroes. The surveillance revelations bring them back to Big Brother kind of narratives, and they don’t like that at all. The Obama administration almost appears as though it is afraid of the intelligence community. They’re afraid of death by a thousand cuts—you know, leaks and things like that.
  • The Nation: You’ve given us a lot of time, and we are very grateful, as will be The Nation’s and other readers. But before we end, any more thoughts about your future? Snowden: If I had to guess what the future’s going to look like for me—assuming it’s not an orange jumpsuit in a hole—I think I’m going to alternate between tech and policy. I think we need that. I think that’s actually what’s missing from government, for the most part. We’ve got a lot of policy people, but we have no technologists, even though technology is such a big part of our lives. It’s just amazing, because even these big Silicon Valley companies, the masters of the universe or whatever, haven’t engaged with Washington until recently. They’re still playing catch-up. As for my personal politics, some people seem to think I’m some kind of archlibertarian, a hyper-conservative. But when it comes to social policies, I believe women have the right to make their own choices, and inequality is a really important issue. As a technologist, I see the trends, and I see that automation inevitably is going to mean fewer and fewer jobs. And if we do not find a way to provide a basic income for people who have no work, or no meaningful work, we’re going to have social unrest that could get people killed. When we have increasing production—year after year after year—some of that needs to be reinvested in society. It doesn’t need to be consistently concentrated in these venture-capital funds and things like that. I’m not a communist, a socialist or a radical. But these issues have to be 
addressed.
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    Remarkable interview. Snowden finally gets asked some questions about politics. 
Paul Merrell

Libya: From Africa's Richest State Under Gaddafi, to Failed State After NATO Interventi... - 0 views

  • This week marks the three-year anniversary of the Western-backed assassination of Libya’s former president, Muammar Gaddafi, and the fall of one of Africa’s greatest nations. In 1967 Colonel Gaddafi inherited one of the poorest nations in Africa; however, by the time he was assassinated, Gaddafi had turned Libya into Africa’s wealthiest nation. Libya had the highest GDP per capita and life expectancy on the continent. Less people lived below the poverty line than in the Netherlands. After NATO’s intervention in 2011, Libya is now a failed state and its economy is in shambles. As the government’s control slips through their fingers and into to the militia fighters’ hands, oil production has all but stopped. The militias variously local, tribal, regional, Islamist or criminal, that have plagued Libya since NATO’s intervention, have recently lined up into two warring factions. Libya now has two governments, both with their own Prime Minister, parliament and army.
  • For over 40 years, Gaddafi promoted economic democracy and used the nationalized oil wealth to sustain progressive social welfare programs for all Libyans. Under Gaddafi’s rule, Libyans enjoyed not only free health-care and free education, but also free electricity and interest-free loans. Now thanks to NATO’s intervention the health-care sector is on the verge of collapse as thousands of Filipino health workers flee the country, institutions of higher education across the East of the country are shut down, and black outs are a common occurrence in once thriving Tripoli. One group that has suffered immensely from NATO’s bombing campaign is the nation’s women. Unlike many other Arab nations, women in Gaddafi’s Libya had the right to education, hold jobs, divorce, hold property and have an income. The United Nations Human Rights Council praised Gaddafi for his promotion of women’s rights. When the colonel seized power in 1969, few women went to university. Today, more than half of Libya’s university students are women. One of the first laws Gaddafi passed in 1970 was an equal pay for equal work law. Nowadays, the new “democratic” Libyan regime is clamping down on women’s rights. The new ruling tribes are tied to traditions that are strongly patriarchal. Also, the chaotic nature of post-intervention Libyan politics has allowed free reign to extremist Islamic forces that see gender equality as a Western perversion.
  • Hifter’s forces are currently vying with the Al Qaeda group Ansar al-Sharia for control of Libya’s second largest city, Benghazi. Ansar al-Sharia was armed by America during the NATO campaign against Colonel Gaddafi. In yet another example of the U.S. backing terrorists backfiring, Ansar al-Sharia has recently been blamed by America for the brutal assassination of U.S. Ambassador Stevens. Hifter is currently receiving logistical and air support from the U.S. because his faction envision a mostly secular Libya open to Western financiers, speculators, and capital. Perhaps, Gaddafi’s greatest crime, in the eyes of NATO, was his desire to put the interests of local labour above foreign capital and his quest for a strong and truly United States of Africa. In fact, in August 2011, President Obama confiscated $30 billion from Libya’s Central Bank, which Gaddafi had earmarked for the establishment of the African IMF and African Central Bank. In 2011, the West’s objective was clearly not to help the Libyan people, who already had the highest standard of living in Africa, but to oust Gaddafi, install a puppet regime, and gain control of Libya’s natural resources.
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  • On one side, in the West of the country, Islamist-allied militias took over control of the capital Tripoli and other cities and set up their own government, chasing away a parliament that was elected over the summer. On the other side, in the East of the Country, the “legitimate” government dominated by anti-Islamist politicians, exiled 1,200 kilometers away in Tobruk, no longer governs anything. The fall of Gaddafi’s administration has created all of the country’s worst-case scenarios: Western embassies have all left, the South of the country has become a haven for terrorists, and the Northern coast a center of migrant trafficking. Egypt, Algeria and Tunisia have all closed their borders with Libya. This all occurs amidst a backdrop of widespread rape, assassinations and torture that complete the picture of a state that is failed to the bone. America is clearly fed up with the two inept governments in Libya and is now backing a third force: long-time CIA asset, General Khalifa Hifter, who aims to set himself up as Libya’s new dictator. Hifter, who broke with Gaddafi in the 1980s and lived for years in Langley, Virginia, close to the CIA’s headquarters, where he was trained by the CIA, has taken part in numerous American regime change efforts, including the aborted attempt to overthrow Gaddafi in 1996.
  • Three years ago, NATO declared that the mission in Libya had been “one of the most successful in NATO history.” Truth is, Western interventions have produced nothing but colossal failures in Libya, Iraq, and Syria. Lest we forget, prior to western military involvement in these three nations, they were the most modern and secular states in the Middle East and North Africa with the highest regional women’s rights and standards of living. A decade of failed military expeditions in the Middle East has left the American people in trillions of dollars of debt. However, one group has benefited immensely from the costly and deadly wars: America’s Military-Industrial-Complex. Building new military bases means billions of dollars for America’s military elite. As Will Blum has pointed out, following the bombing of Iraq, the United States built new bases in Kuwait, Bahrain, Qatar, the United Arab Emirates, Oman and Saudi Arabia. Following the bombing of Afghanistan, the United States is now building military bases in Pakistan, Kazakhstan, Uzbekistan and Tajikistan. Following the recent bombing of Libya, the United States has built new military bases in the Seychelles, Kenya, South Sudan, Niger and Burkina Faso.
  • Given that Libya sits atop the strategic intersection of the African, Middle Eastern and European worlds, Western control of the nation, has always been a remarkably effective way to project power into these three regions and beyond. NATO’s military intervention may have been a resounding success for America’s military elite and oil companies but for the ordinary Libyan, the military campaign may indeed go down in history as one of the greatest failures of the 21st century.
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    Indeed, Muammar Gadafi was well on his way to becoming the Simón Bolívar of Africa when the U.S. snuffed out his government and his life to end his efforts to create a United States of Africa with its own gold-backed currency. Were there Justice in this world, Barack Obama would be in prison today for his war crimes against the Libyan people. 
Paul Merrell

POGO Provides Statement for House Hearing on VA Whistleblowers - 0 views

  • In the spring of 2014, the Project On Government Oversight (POGO) put out the call to whistleblowers within the Department of Veterans Affairs (VA) to provide an inside perspective on the issues the Department was facing. In our 34-year history, POGO has never received as many submissions on a single issue. Nearly 800 current and former VA employees and veterans from 35 states and the District of Columbia contacted us. POGO reviewed each of the submissions, and found that concerns about the VA go far beyond long or falsified wait times for medical appointments; they extend to the quality of health care services veterans receive. A recurring and fundamental theme became clear: VA employees across the country fear they will face repercussions if they dare to raise a dissenting voice. POGO wrote a letter to Acting VA Secretary Sloan Gibson in July last year, highlighting three specific cases of current or former employees who agreed to share details about their personal experiences of retaliation.[1] In California, a VA inpatient pharmacy supervisor was placed on administrative leave and ordered not to speak out after protesting “inordinate delays” in delivering medication to patients and “refusal to comply with VHA regulations.” In one case, he said, a veteran’s epidural drip of pain control medication ran dry, and another veteran developed a high fever after he was administered a chemotherapy drug after its expiration point.
  • In Pennsylvania, a former VA doctor told POGO that he had been removed from clinical work and forced to spend his days in an office with nothing to do. This action occurred after he complained that, in medical emergencies, physicians who were supposed to be on call were failing or refusing to report to the hospital. The Office of Special Counsel (OSC) shared his concerns, writing “[w]e have concluded that there is a substantial likelihood that the information that you provided to OSC discloses a substantial and specific danger to public health and safety.”[2] In Appalachia, a former VA nurse told POGO she was intimidated by management and forced out of her job after she raised concerns that patients with serious injuries were being neglected. In one case she was reprimanded for referring a patient to the VA’s patient advocate after weeks of being unable to arrange transportation for a medical test to determine if he was in danger of sudden death. “Such an upsetting thing for a nurse just to see this blatant neglect occur almost on a daily basis. It was not only overlooked but appeared to be embraced,” she said. She also pointed out that there is “a culture of bullying employees….It’s just a culture of harassment that goes on if you report wrongdoing,” she said.
  • That culture doesn’t appear to be limited to just one or two VA clinics. Some people, including former employees who are now beyond the reach of VA management, were willing to be interviewed by POGO and to be quoted by name, but others said they contacted us anonymously because they are still employed at the VA and are worried about retaliation. One put it this way: “Management is extremely good at keeping things quiet and employees are very afraid to come forward.” This kind of fear and suppression of whistleblowers who report wrongdoing often culminates in the larger problems, as the VA is currently experiencing. By now it is well known that employees who recently raised concerns about veteran wait times faced reprisal. But whistleblower retaliation in the VA is nothing new. In 1992 a congressional report detailed the experiences of VA employees who were harassed or fired after reporting problems.[3] Throughout the 1990s there were several congressional hearings conducted on the quality of care at VA hospitals and on reprisal against VA employees who exposed inadequate care.[4] Despite then-Secretary Togo D. West’s declaration that such reprisals would not be tolerated, a House hearing in 1999 found that the reprisal problems still existed.[5] A Government Accountability Report from 2000 found that many VA employees were unaware of their rights to protections against retaliation for blowing the whistle on wrongdoing.[6] The report also found that the majority of employees feared retaliation and were therefore unwilling to report misconduct.
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  • The Office of Special Counsel (OSC) has been working to investigate claims of retaliation and get favorable actions for many of the VA whistleblowers who have come forward. Since April 2014, the OSC has successfully obtained corrective actions for over 25 whistleblowers.[7] But the OSC still has over 100 pending VA reprisal cases to investigate, among the highest of any government agency, according to Special Counsel Carolyn Lerner.[8] Although the VA has been cooperative with the OSC and their recommendations, merely addressing isolated incidents is not enough.[9] The VA has been struggling with a culture problem for decades and something more must be done.
  • VA employees who have concerns about management or fear retaliation are supposed to be able to turn to the VA’s Office of Inspector General (OIG). But whistleblowers have come to doubt the VA IG’s willingness to hold wrongdoers accountable. Since 2014, the IG Office has not yet publically released any investigation into employee retaliation, making it difficult to assess how seriously the IG’s office is taking this issue. Furthermore, the VA IG’s office issued an administrative subpoena to POGO in May 2014 that was little more than an invasive fishing expedition for whistleblowers. The IG demanded “All records that POGO has received from current or former employees of the Department of Veterans Affairs, and other individuals or entities.”[10] Though POGO did not comply with the subpoena, such an action was cause for concern for many of the whistleblowers who had shared information with us. POGO remains concerned that there is not a permanent VA IG in place and that the position has been vacant for over a year.[11] Our own investigations have found that the absence of permanent leadership can have a serious impact on the effectiveness of an IG office.[12] Acting IGs do not undergo the same kind of extensive vetting process required of permanent IGs, and as a consequence usually lack the credibility of a permanent IG. Acting IGs also often seek appointment to the permanent position, which can compromise their independence by giving them an incentive to curry favor with the White House and the leadership of their agency.[13] Perhaps most worrisome, given the significant challenges facing the VA IG, a 2009 study found that vacancies in top agency positions promote agency inaction, create confusion among career employees, make an agency less likely to handle controversial issues, result in fewer enforcement actions by regulatory agencies and decrease public trust in government.[14]
  • It appears the VA IG may be subject to this dangerous lack of independence. For example, the VA OIG has failed to release the results of 140 health care investigations since 2006.[15] Furthermore, the Department of Treasury IG sent a letter to this Committee just last month raising concerns about another VA IG investigation. After speaking to witnesses familiar with the situation, the Treasury IG concluded that their testimony, “calls into question the integrity of the VA OIG’s actions in this particular manner.” The Treasury IG’s investigation also found that multiple witnesses stated a VA employee boasted about his ability to influence the VA OIG’s investigations.[16]
  • In POGO’s 2014 letter, we recommended concrete steps for incoming VA Secretary McDonald to take in order to demonstrate an agency-wide commitment to changing the VA’s culture of fear, bullying, and retaliation. Neither Acting Secretary Sloan Gibson nor Secretary McDonald have responded to our multiple requests for a meeting. Clearly, an important first step will be for the President to nominate a permanent IG for the VA. Hopefully strong and committed leadership in that office will correct its current course. POGO recommended that Secretary McDonald make a tangible and meaningful gesture to support those whistleblowers who have been trying to fix the VA from the inside. Once the OSC has identified meritorious cases, Secretary McDonald should personally meet with those whistleblowers and elevate their status from villain to hero. These employees should be publicly celebrated for their courage, and should receive positive recognition in their personnel files, including possibly receiving the types of bonuses that have been provided to wrongdoers in the past. Retaliation against whistleblowers is already a prohibited personnel practice, but it will be up to the senior-most VA leadership to ensure that this rule is enforced by the agency. This should not be an isolated event done in response to recent criticisms but an ongoing effort. Whistleblowing must be encouraged and celebrated or wrongdoing will continue.
  • But it’s not just the VA Secretary who can work to fix this problem. Congress should enact legislation that codifies accountability for those who retaliate against whistleblowers. The definition of “wrongdoing” must include retaliation. The cultural shift that is required inside the Department of Veterans Affairs must be accompanied by statutory mandates that protect whistleblowers and witnesses inside the agency from retaliation. Legislation should ensure that whistleblowers are able to be confident that stepping forward to expose wrongdoing will not result in retaliation, and should provide a system to hold retaliators within the VA accountable. Congress should also extend whistleblower protections to contractors and veterans who raise concerns about medical care provided by the VA. POGO’s investigation found that both of these groups also fear retaliation that prevents them from coming forward. While federal employees working at the VA enjoy whistleblower protections, contractors do not. Congress should extend the same protections to contractors in order to promote internal oversight in an increasingly contractor-heavy landscape.
  • In addition, a veteran who is receiving poor care should be able to speak to his or her patient advocate without fear of retaliation, including a reduction in the quality of health care. Without this reassurance, there is a disincentive to report poor care, allowing it to continue uncorrected. Congress should extend whistleblower protections to veteran whistleblowers. The VA and Congress must work together to end this culture of fear and retaliation. Whistleblowers who report concerns that affect veteran health must be lauded, not shunned. And the law must protect them.
Paul Merrell

CISA Security Bill: An F for Security But an A+ for Spying | WIRED - 0 views

  • When the Senate Intelligence Committee passed the Cybersecurity Information Sharing Act by a vote of 14 to 1, committee chairman Senator Richard Burr argued that it successfully balanced security and privacy. Fifteen new amendments to the bill, he said, were designed to protect internet users’ personal information while enabling new ways for companies and federal agencies to coordinate responses to cyberattacks. But critics within the security and privacy communities still have two fundamental problems with the legislation: First, they say, the proposed cybersecurity act won’t actually boost security. And second, the “information sharing” it describes sounds more than ever like a backchannel for surveillance.
  • On Tuesday the bill’s authors released the full, updated text of the CISA legislation passed last week, and critics say the changes have done little to assuage their fears about wanton sharing of Americans’ private data. In fact, legal analysts say the changes actually widen the backdoor leading from private firms to intelligence agencies. “It’s a complete failure to strengthen the privacy protections of the bill,” says Robyn Greene, a policy lawyer for the Open Technology Institute, which joined a coalition of dozens of non-profits and cybersecurity experts criticizing the bill in an open letter earlier this month. “None of the [privacy-related] points we raised in our coalition letter to the committee was effectively addressed.” The central concern of that letter was how the same data sharing meant to bolster cybersecurity for companies and the government opens massive surveillance loopholes. The bill, as worded, lets a private company share with the Department of Homeland Security any information construed as a cybersecurity threat “notwithstanding any other provision of law.” That means CISA trumps privacy laws like the Electronic Communication Privacy Act of 1986 and the Privacy Act of 1974, which restrict eavesdropping and sharing of users’ communications. And once the DHS obtains the information, it would automatically be shared with the NSA, the Department of Defense (including Cyber Command), and the Office of the Director of National Intelligence.
  • In a statement posted to his website yesterday, Senator Burr wrote that “Information sharing is purely voluntary and companies can only share cyber-threat information and the government may only use shared data for cybersecurity purposes.” But in fact, the bill’s data sharing isn’t limited to cybersecurity “threat indicators”—warnings of incoming hacker attacks, which is the central data CISA is meant to disseminate among companies and three-letter agencies. OTI’s Greene says it also gives companies a mandate to share with the government any data related to imminent terrorist attacks, weapons of mass destruction, or even other information related to violent crimes like robbery and carjacking. 
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  • The latest update to the bill tacks on yet another kind of information, anything related to impending “serious economic harm.” All of those vague terms, Greene argues, widen the pipe of data that companies can send the government, expanding CISA into a surveillance system for the intelligence community and domestic law enforcement. If information-sharing legislation does not include adequate privacy protections, then...It’s a surveillance bill by another name. Senator Ron Wyden
  • “CISA goes far beyond [cybersecurity], and permits law enforcement to use information it receives for investigations and prosecutions of a wide range of crimes involving any level of physical force,” reads the letter from the coalition opposing CISA. “The lack of use limitations creates yet another loophole for law enforcement to conduct backdoor searches on Americans—including searches of digital communications that would otherwise require law enforcement to obtain a warrant based on probable cause. This undermines Fourth Amendment protections and constitutional principles.”
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    I read the legislation. It's as bad for privacy as described in the aritcle. And its drafting is incredibly sloppy.
Paul Merrell

Turkey to be offered €3bn to help curb influx of refugees to EU - RT News - 0 views

  • German Chancellor Angela Merkel and other EU leaders want to clinch a €3-billion deal with Ankara to curb the influx of asylum seekers coming to Europe from Africa and the Mideast. The EU wants Turkey to beef up its border patrols with Greece in return. The EU leaders have agreed to invite Turkish President Recep Tayyip Erdoğan to a special summit in Brussels to speed up an agreement that would see Turkey patrolling the EU’s southern border with Greece in an attempt to halt the flow of refugees.
  • The executive European Commission proposed to EU leaders, meeting in the Maltese capital of Valletta, that Ankara be offered a "refugee grant facility," worth up to €3 billion, to help Turkey accommodate over two million Syrians, Reuters reported. More than 650,000 of the 800,000 refugees who have reached EU countries by sea this year have left from Turkey, according to AFP.In return for its help, Ankara wants the EU to provide visa-free travel for Turkish nationals, and a resumption of negotiations on Turkey's long-stalled application to join the 28-nation bloc, AFP reported.
  • Of the €3 billion ($3.2bn), 500 million would come from the EU budget and the rest, under the Commission proposal, from the 28 member states according to their national incomes.No EU country has yet committed to paying its share of the €3-billion bill, except Britain, according to the Guardian. While in Valletta, Prime Minister David Cameron offered €400 million for the Turkey plan.The current refugee crisis, dubbed the worst since WWII, has already proved to be a real challenge for Europe. Germany (population 80 million) may receive 1.5 million asylum seekers this year alone. It has already accepted more asylum applications than any other European nation, with a number of critics pointing to a high number of uneducated and illiterate people coming to the country.
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  • There has been a spike in hate crimes against refugees, with much far-right anger and criticism directed at Chancellor Angela Merkel’s decision to suspend the Dublin Regulation, which stipulates that migrants and refugees can only claim asylum at a German port of entry.
  • The migration crisis has given fresh impetus to the PEGIDA movement (Patriotic Europeans Against the Islamization of the Occident), whose activists staged a number of demos across Germany last month.Some EU member countries are introducing temporary border controls to halt the influx of refugees and to screen those trying to enter the country illegally.
Gary Edwards

There Are No Coincidences - 3 views

This commentary is currently making the rounds of the Bay Area Patriots circles: ITS ALL TRUE :: Any one of these 'coincidences' when taken singularly appear to not mean much, but when taken as a ...

Obama-coincidences Marxism Marxist-Muslim

started by Gary Edwards on 02 Jul 13 no follow-up yet
Paul Merrell

Can the AEC be a success? - nsnbc international | nsnbc international - 0 views

  • After almost two decades of discussion, the ASEAN Economic Community (AEC) will be proclaimed on 31st December. The AEC is a potentially significant and competitive economic region, should it be allowed to develop according to the aspiration of being a “single market and production base, with free flow of services, investments, and labour, by the year 2020”.
  • The ASEAN region as a composite trading block has the third highest population at 634 million, after China and India. GDP per capita is rapidly rising. The AEC would be the 4th largest exporter after China, the EU, and the United States, with still very much scope for growth from Cambodia, Myanmar, the Philippines, and Vietnam from a diverse range of activities ranging from agriculture, food, minerals and commodities, electronics, and services. The coming AEC is already the 4th largest importer of goods after the United States, EU, and China, making it one of the biggest markets in the world. Unlike the other trade regions, the AEC still has so much potential for growth with rising population, rising incomes, growing consumer sophistication, and improving infrastructure. Perhaps the biggest benefit of the upcoming AEC is the expected boost this will give to intra-ASEAN trade. Most ASEAN nations have previously put their efforts into developing external relationships with the major trading nations like the EU, Japan and the US through bilateral and free trade agreements. To some extent, the potential of intra-ASEAN trade was neglected, perhaps with the exception of the entrepot of Singapore. The AEC is an opportunity to refocus trade efforts within the region, especially when Vietnam, Cambodia, Indonesia are rapidly developing, and Myanmar is opening up for business with the rest of the region.
  • There are no integrated banking structures, no agreement on common and acceptable currencies (some ASEAN currencies are not interchangeable), no double taxation agreements, and no formal agreements on immigration. There is not even any such thing as a common ASEAN business visa. These issues are going to hinder market access for regional SMEs. Any local market operations will have to fulfil local laws and regulations which may not be easy for non-citizens to meet and adhere to. Even though there are some preferential tariffs for a number of classes of ASEAN originating goods, non-tariff barriers are still in existence, which are insurmountable in some cases like the need for import licenses (APs) in Malaysia, and the need to have a registered company which can only be formed by Thai nationals within Thailand. Some of these problems are occurring because of the very nature of ASEAN itself. ASEAN was founded on the basis of consultation, consensus, and non-interference in the internal affairs of other members. This means that no formal problem solving mechanism exists, and the ASEAN Secretariat is a facilitator rather than implementer of policy. Illegal workers, human trafficking, money laundering, and haze issues between member states have no formal mechanisms through which these issues can be solved from an ASEAN perspective. This weakens the force for regional integration.
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  • However the necessary infrastructure to support intra-ASEAN trade growth is lagging behind with a delay in the completion of the Trans-Asia Highway in Cambodia, and vastly inadequate border checkpoints between Malaysia and Thailand in Sadao and Kelantan. Some infrastructure development projects have been severely hit by finance shortfalls within member states. There are a number of outstanding issues concerning the growth and development of the AEC. The ASEAN Secretariat based in Jakarta has a small staff, where the best talent is lacking due to the small salaries paid. The Secretariat unlike the EU bureaucratic apparatus in Brussels relies on cooperation between the member state governments for policy direction, funding and implementation of the AEC. Thus the frontline of AEC implementation are the individual country ministries, which presents many problems, as some issues require multi-ministry cooperation and coordination, which is not always easy to achieve as particular ministries have their own visions and agendas. Getting cooperation of these ministries isn’t easy. There are numerous structural and procedural issues yet to be contended with. At the inter-governmental level, laws and regulations are yet to be coordinated and harmonized. So in-effect there is one community with 10 sets of regulations in effect this coming January 1st. Consumer laws, intellectual property rights, company and corporate codes (no provision for ASEAN owned companies), land codes, and investment rules are all different among the individual member states.
  • One of the major issues weakening the potential development of the AEC is the apparent lack of political commitment for a common market by the leadership of the respective ASEAN members. Thailand is currently in a struggle to determine how the country should be governed. Malaysia is in the grip of corruption scandals where the prime minister is holding onto power. Myanmar is going through a massive change in the way it will be governed. Indonesia is still struggling with how its archipelago should be governed. There is a view from Vietnam that business within the country is not ready for the AEC. Intense nationalistic sentiments among for example Thais, exasperated by the recent Preach Vihear Temple conflict along the Thai-Cambodian border need to be softened to get full advantage out of the AEC. The dispute in the International Court of Justice over Pedra Branca, and the Philippine rift with China over the South China Sea show the delicacy of relationships among ASEAN members. The recent Thai court decision on the guilt of Zaw Lin and Win Zaw Tun in the murder of two young British tourists may also show how fragile intra-ASEAN relationships can be. The AEC is going to fall far short of achieving its full potential of becoming a major influence in global trade. The AEC is not intended to be the same model as the EEC. The AEC is far from being any fully integrated economic community. The lack of social, cultural, and political integration within the ASEAN region indicates the massive job ahead that Europe had been through decades ago. There is still a lot of public ignorance about what the AEC is, and lack of excitement or expectation for what should be a major event within the region. Respective national media are scant on information about the forthcoming launch of the AEC.
Gary Edwards

Just 62 people control more wealth than half the world's population: study - CSMonitor.com - 1 views

  • Oxfam argues that there are several reasons for why the disparity between rich and poor has become so vast, including what the report terms “the global spider’s web of tax havens and the industry of tax avoidance, which has blossomed over recent decades.”Oxfam estimates that nearly $7.6 trillion, or more than twice the combined GDP of the United Kingdom and Germany, is currently being held offshore.
  • The Oxfam study also suggests that the global economy’s push on the importance of capital over labor is another reason for widening inequality. This not only concentrates national incomes in the hands of those few that control it, Oxfam says, but has implications for private companies as well. It increases pay for executives while preventing many workers in the very lowest-paying jobs at the bottom from earning higher wages.
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    "A recent study conducted by Oxfam International indicates that just 62 people, 53 of them men, now control over half the world's wealth. The study, 'An Economy for the 1 Percent,' was released ahead of the World Economic Forum (WEF) in Davos, Switzerland. The study from the anti-poverty NGO calculated that 62 people held the same amount of wealth as the world's 3.6 billion poorest citizens in 2015.  That's a huge drop from the estimated 388 people who controlled that amount of wealth in 2010, and the concentrated amount of wealth that those 62 people possess has increased by 44 percent over that same five-year period, to $1.76 trillion dollars. It is true that global poverty has declined substantially since 1990, according to Oxfam. However, the study found that at the same time that global wealth rose dramatically among the world's richest 1 percent, the relative wealth of those living in extreme poverty has declined dramatically since 2010, by approximately $1 trillion."
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    The divide between the haves and the have-nots has been deepening for decades and is well known. This year, the topic has become part of presidential election politics thanks to Bernie Sanders. But while the situation has no public defenders, we have yet to see a single piece of legislation submitted to remedy the situation. That leaves the situation as a talking point rather than the focus of remedial action, which leads to the conclusion that those who talk about it don't care enough about it to do anything to reverse the situation. Example, since the financial crash of 2007 we have no bill to reintroduce Glass\Seagall, no bill to break up the too-big-to-fail banks (which are no bigger than before), no bill to back the U.S. out of the trade agreements that have shipped millions of American jobs overseas, no bill to increase taxes for the wealthy, etc. Instead, we see a majority of members of Congreess voting to maintain the status quo, which is that the rich get richer and the poor get poorer. The cure? Step 1 is adoption of the We the People Amendment to get corporations and money out of the election process. https://movetoamend.org/wethepeopleamendment
Paul Merrell

Saudi Arabia is on the Brink of Regime Change - nsnbc international | nsnbc international - 0 views

  • It seems that Saudi Arabia has started to undergo the transformation various experts predicted. Those became obvious when the sitting king Salman bin Abdulaziz Al Saud replaced his deceased elder brother Abdullah bin Abdulaziz Al Saud in January 2015, and made a number of quite unusual arrangements within the ruling elite, appointing the head of the Ministry of Interior Muhammad bin Nayef from Abdullah’s clan the Crown Prince, while his 33-year-old son Mohammad bin Salman Al Saudfrom the Sudairy clan received the appointment of Deputy Crown Prince.
  • Now it seems that the wheels of the political machine are moving again. Last week reports from Riyadh indicated that his disease is taking a toll on the king and he wants to renounce his reign in favor of the Crown Prince. But then neighboring states, especially Qatar and the United Arab Emirates, started hinting that the members of the Saudi royal family along with the sheikhs of the strongest tribes, which are the foundation of Al Saud’s rule, are extremely dissatisfied with the sharp deterioration of the economic and social situation in the country, leading to a major drop in their personal incomes. It is no secret that Riyadh increased the volume of oil production to weaken the positions of its main competitors – Russia, Iran and Venezuela. But the kingdom had to take a punch as well, it was forced to unseal its reserve fund and cut the funding of numerous social programs.
  • Now the highly respected Institute for Gulf Affairs is stating that the king of Saudi Arabia Salman bin Abdulaziz Al Saud is preparing to renounce the throne in favor of his son Mohammad bin Salman Al Saud, and has since brought his country to the brink of a disaster. It means that the 80-year-old Salman is trying desperately hard to persuade his brothers on the succession board to allow him to change the principle of succession of the Saudi throne, since he’s ready to leave, but not so ready for his nephew Mohammad bin Salman Al Saud to rule the country. What the king has been doing is allegedly done “only for the sake of the stability of the kingdom.” Although the reality of the situation is clear – should Salman retain his position, the disintegration of the kingdom is imminent, with certain Shia areas breaking away, while the regions on the border with Yemen which are mostly populated by Yemeni tribes, more than happy to return home. Moreover, the Minister of Interior used to be a habitual cocaine user, so he was only able to “produce” two daughters, and now he’s somewhat incapable of producing more children. Should the king manage to carry out the above described scheme, he will become the first Saudi monarch to leave the throne to his son.
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  • And the fact that there’s a growing crisis in Saudi Arabia was evident from the cuts in subsidies and bonuses that king Salman started at the beginning of this year to reduce the country’s total dependence on oil. After decades of extensive use of oil revenues to subsidize companies’ payment of generous salaries and providing enormous social benefits, falling oil prices struck Saudi Arabia at its heart. It’s enough to say that revenues from oil exports in 2015 alone dropped by half. Ultimately it’s hard to say which country suffers the most from these oil wars – Russia or Saudi Arabia, since the latter has virtually no other sectors to support the economy. Saudi economist Turki Fadaak believes that Saudi Arabia is exiting the policy of “universal welfare”, so there’s an ongoing psychological shift in the minds of the ruling elite of the state. Fadaak is convinced that the ultimate aim of king Salman’s measures is to eliminate the Saudi dependency on oil. But is it really? According to leading international experts – the answer is a resounding “no”, with all the arguments to the contrary nothing more than fantasy.
  • Although initially it seemed that Salman, who came to power after the death of his brother, King Abdullah, will continue his course, after assuming the throne Salman generously spent over 30 billion dollars from the budget on bonuses for civil servants, military personnel, and students. Additionally, prices for basic goods and services, including fuel, electricity and water prices were kept at extremely low levels due to government subsidies from oil revenues. However, due to falling oil prices, under the pressure of such costs the budget started to rupture. The most important thing now for the kingdom is to execute the transition from the extremely lavish social security system to a productive economy, but then the subjects of the king will be forced to cut their costs, and it looks that they do not agree with this notion. And accusations in the imminent economic collapse will go Salman’s way, so it is better for him to leave now, before protests even start.
  • It is curious that Saudi Arabia has been rather realistic about its budget for the year 2016, since it was based on the average price of oil keeping at the level 29 dollars per barrel. Last year, the Saudi budget deficit amounted to almost 98 billion dollars and the costs were considerably higher than it was originally planed due to bonuses for civil servants, military personnel and retirees. In 2016 the authorities decided to put up to 49 billion dollars into a special fund to provide funding for the most important projects in case oil prices drop even further. But it was Saudi Arabia back in 2014 that proposed new tactics for OPEC, that implied that there would be no cuts in the level of production, the tactics that drove oil prices to today’s levels. So we are to learn pretty soon should Riyadh choose the path of the utter and complete collapse of the kingdom, or the path of giving power to the young and pragmatic technocrats who are going to pursue a comprehensive oil policy. Either way, Saudi Arabia will be forced to put an end to the costly military adventures in Syria and Yemen as well as its confrontations with Russia and Iran.
Paul Merrell

Wells Fargo in Hot Water with US Regulators & Fed After Lawsuit - nsnbc international |... - 0 views

  • Wells Fargo is facing a probe by the Officer of the Comptroller of the Currency (OCC) and the San Francisco Federal Reserve Bank (SFFR) into their allegedly unethical business practices.
  • Back in May Wells Fargo was sued by employees (current and former) and customers all across the nation for setting up “unwanted accounts, unwarranted fees”. This lawsuit “contends 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, WF made it “difficult to correct the mistakes” made by WF 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.” Los Angeles City Attorney Mike Feuer said: “In its push for growth, Wells Fargo often elevated its profits over the legal rights of its customers.”
  • For 2 years, Feuer has been investigating how WF “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 WF 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.” WF 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”. According to the 19-page complaint, WF 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.” Another devious tactic WF employed was “bundling” or “incorrectly informing customers that certain products are available only in packages with other products such as additional accounts, insurance, annuities, and retirement plans.”
Paul Merrell

Goodbye Middle Class: 51 Percent Of All American Workers Make Less Than 30,000 Dollars ... - 0 views

  • We just got more evidence that the middle class in America is dying.  According to brand new numbers that were just released by the Social Security Administration, 51 percent of all workers in the United States make less than $30,000 a year.  Let that number sink in for a moment.  You can’t support a middle class family in America today on just $2,500 a month – especially after taxes are taken out.  And yet more than half of all workers in this country make less than that each month.  In order to have a thriving middle class, you have got to have an economy that produces lots of middle class jobs, and that simply is not happening in America today. You can find the report that the Social Security Administration just released right here.  The following are some of the numbers that really stood out for me… -38 percent of all American workers made less than $20,000 last year. -51 percent of all American workers made less than $30,000 last year. -62 percent of all American workers made less than $40,000 last year. -71 percent of all American workers made less than $50,000 last year.
  • That first number is truly staggering.  The federal poverty level for a family of five is $28,410, and yet almost 40 percent of all American workers do not even bring in $20,000 a year. If you worked a full-time job at $10 an hour all year long with two weeks off, you would make approximately $20,000.  This should tell you something about the quality of the jobs that our economy is producing at this point. And of course the numbers above are only for those that are actually working.  As I discussed just recently, there are 7.9 million working age Americans that are “officially unemployed” right now and another 94.7 million working age Americans that are considered to be “not in the labor force”.  When you add those two numbers together, you get a grand total of 102.6 million working age Americans that do not have a job right now.
  • So many people that I know are barely scraping by right now.  Many families have to fight tooth and nail just to make it from month to month, and there are lots of Americans that find themselves sinking deeper and deeper into debt. If you can believe it, about a quarter of the country actually has a negative net worth right now. What that means is that if you have no debt and you also have ten dollars in your pocket that gives you a greater net worth than about 25 percent of the entire country.
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  • As a nation we are flat broke and most of us are living paycheck to paycheck.  It has been estimated that it takes approximately $50,000 a year to support a middle class lifestyle for a family of four in the U.S. today, and so the fact that 71 percent of all workers make less than that amount shows how difficult it is for families that try to get by with just a single breadwinner. Needless to say, a tremendous squeeze has been put on the middle class.  In many families, both the husband and the wife are working as hard as they can, but it is still not enough.  With each passing day, more Americans are losing their spots in the middle class and this has pushed government dependence to an all-time high.  According to the U.S. Census Bureau, 49 percent of all Americans now live in a home that receives money from the government each month. Sadly, the trends that are destroying the middle class in America just continue to accelerate.
  • With a huge assist from the Republican leadership in Congress, Barack Obama recently completed negotiations on the Trans-Pacific Partnership.  Also known as Obamatrade, this insidious new treaty is going to cover nations that collectively account for 40 percent of global GDP.  Just like NAFTA, this treaty will result in the loss of thousands of businesses and millions of good paying American jobs.  Let us hope and pray that Congress somehow votes it down. Another thing that is working against the middle class is the fact that technology is increasingly taking over our jobs.  With each passing year, it becomes cheaper and more efficient to have computers, robots and machines do things that humans once did. Eventually, there will be very few things that humans will be able to do more cheaply and more efficiently than computers, robots and machines.  How will most of us make a living when that happens?…
  • For decades, we have been training our young people to have the goal of “getting a job” once they get out into the real world.  But in America today there are not nearly enough good jobs to go around, and this crisis is only going to accelerate as we move into the future. I do not believe that it is wise to pin your future on a corporation that could replace you with a foreign worker or a machine the moment that it becomes expedient to do so.  We need to start thinking differently, because the paradigms that worked in the past are fundamentally breaking down.
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    From a website with the same title as this Diigo group.
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