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Paul Merrell

Trump's Infrastructure Boondoggle - 0 views

www.counterpunch.org/...umps-infrastructure-boondoggle

economy Trump infrastructure

shared by Paul Merrell on 19 Mar 17 - No Cached
  • Donald Trump’s $1 trillion infrastructure plan is not an infrastructure plan and it won’t put $1 trillion of fiscal stimulus into the economy. It’s basically a scheme for handing over public assets to private corporations that will extract maximum profits via user fees and tolls. Because the plan is essentially a boondoggle, it will not lift the economy out of the doldrums, increase activity or boost growth.  Quite the contrary. When the details of how the program is going to be implemented are announced,  public confidence in the Trump administration is going to wither and stock prices are going to plunge.   This scenario cannot be avoided because the penny-pinching conservatives in the House and Senate have already said that they won’t support any plan that is not “revenue neutral” which means that any real $1 trillion spending package is a dead letter.  Thus, it’s only a matter of time before the Trump’s plan is exposed as a fraud and the sh** hits the fan.
  • Here are more of the details from an article at Slate: “Under Trump’s plan…the federal government would offer tax credits to private investors interested in funding large infrastructure projects, who would put down some of their own money up front, then borrow the rest on the private bond markets. They would eventually earn their profits on the back end from usage fees, such as highway and bridge tolls (if they built a highway or bridge) or higher water rates (if they fixed up some water mains). So instead of paying for their new roads at tax time, Americans would pay for them during their daily commute. And of course, all these private developers would earn a nice return at the end of the day.” (“Donald Trump’s Plan to Privatize America’s Roads and Bridges”, Slate) Normally, fiscal stimulus is financed by increasing the budget deficits, but Maestro Trump has something else up his sleeve.  He wants the big construction companies and private equity firms to stump up the seed money and start the work with the understanding that they’ll be able to impose user fees and tolls on roads and bridges when the work is completed.  For every dollar that corporations spend on rebuilding US infrastructure, they’ll get a dollar back via tax credits, which means that they’ll end up controlling valuable, revenue-generating assets for nothing. The whole thing is a flagrant ripoff that stinks to high heaven.   The corporations rake in hefty profits on sweetheart deals, while the American people get bupkis. Welcome to Trumpworld.  Here’s more background from Trump’s campaign website:
  • “American Energy and  Infrastructure Act Leverages public-private partnerships, and private investments through tax incentives, to spur $1 trillion in infrastructure investment over ten years. It is revenue neutral.” (Donald Trump’s Contract with the American Voter”) In practical terms, ‘revenue neutral’ means that every dollar of new spending has to be matched by cuts to other government programs.  So, if there are hidden costs to Trump’s plan, then they’ll have to be paid for by slashing funds for Medicare, Medicaid, Social Security, food stamps etc. But, keep in mind, these other programs are much more effective sources of stimulus since the money goes directly to the people who spend it immediately and help grow the economy. Trump’s infrastructure plan doesn’t work like that. A lot of the money will go towards management fees and operational costs leaving fewer dollars to trickle down to low-paid construction workers whose personal consumption drives the economy. Less money for workers means less spending, less activity and weaker growth.
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  • Here’s more on the topic from the Washington Post: “Trump’s plan is not really an infrastructure plan. It’s a tax-cut plan for utility-industry and construction-sector investors, and a massive corporate welfare plan for contractors. The Trump plan doesn’t directly fund new roads, bridges, water systems or airports…. Instead, Trump’s plan provides tax breaks to private-sector investors who back profitable construction projects. … There’s no requirement that the tax breaks be used for … expanded construction efforts; they could all go just to fatten the pockets of investors in previously planned projects… Second, as a result of the above, Trump’s plan isn’t really a jobs plan, either. Because the plan subsidizes investors, not projects; because it funds tax breaks, not bridges; because there’s no requirement that the projects be otherwise unfunded, there is simply no guarantee that the plan will produce any net new hiring. … Buried inside the plan will be provisions to weaken prevailing wage protections on construction projects, undermining unions and ultimately eroding workers’ earnings. Environmental rules are almost certain to be gutted in the name of accelerating projects.” (Trump’s big infrastructure plan? It’s a trap. Washington Post) Let’s summarize:  “Trump’s plan” is “massive corporate welfare plan for contractors” and the “tax breaks”…”could all go just to fatten the pockets of investors in previously planned projects.”
  • What part of this plan looks like it will have a positive impact on the economy? None. If Trump was serious about raising GDP to 4 percent, (another one of his promises) he’d increase Social Security payments, beef up the food stamps program, or hire more government workers.  Any one of these would trigger an immediate uptick in activity spurring more growth and a stronger economy.  And while America’s ramshackle bridges and roads may be in dire need of a facelift,  infrastructure is actually a poor way to inject fiscal stimulus which can be more easily distributed  by simply hiring government agents to stand on streetcorners and hand out 100 dollar bills to passersby. That might not fill the pothole-strewn streets in downtown Duluth, but it would sure as hell would light a fire under GDP. So what’s the gameplan here? What’s Trump really up to? If his infrastructure plan isn’t going to work, then what’s the real objective? The objective is to allow wealthy corporations to buy public assets at firesale prices so they can turn them into profit-generating enterprises. That’s it in a nutshell. That’s why the emphasis is on “unconventional financing programs”, “public-private partnerships”, and “Build America Bonds” instead of plain-old fiscal stimulus, jobs programs and deficit spending. Trump is signaling to his pirate friends in Corporate America that he’ll use his power as executive to find new outlets for profitable investment so they have some place to stick their mountain of money. Of course, none of this has anything to do with rebuilding America’s dilapidated infrastructure or even revving up GDP. That’s just public relations bunkum. What’s really going on is a massive looting operation organized and executed under the watchful eye of Donald Trump, Robber Baron-in-Chief.
  • And Infrastructure is just the tip of the iceberg. Once these kleptomaniacs hit their stride, they’re going to cut through Washington like locusts through a corn field. Bet on it.
  • Paul Merrell on 19 Mar 17
     
    Mike Whitney always tells it like it is.
Paul Merrell

Profiting from Your Thirst as Global Elite Rush to Control Water Worldwide :: The Marke... - 0 views

www.marketoracle.co.uk/article38167.html

banksters water water-rush privatization

shared by Paul Merrell on 23 May 14 - No Cached
  • A disturbing trend in the water sector is accelerating worldwide. The new “water barons” --- the Wall Street banks and elitist multibillionaires --- are buying up water all over the world at unprecedented pace. Familiar mega-banks and investing powerhouses such as Goldman Sachs, JP Morgan Chase, Citigroup, UBS, Deutsche Bank, Credit Suisse, Macquarie Bank, Barclays Bank, the Blackstone Group, Allianz, and HSBC Bank, among others, are consolidating their control over water. Wealthy tycoons such as T. Boone Pickens, former President George H.W. Bush and his family, Hong Kong’s Li Ka-shing, Philippines’ Manuel V. Pangilinan and other Filipino billionaires, and others are also buying thousands of acres of land with aquifers, lakes, water rights, water utilities, and shares in water engineering and technology companies all over the world. The second disturbing trend is that while the new water barons are buying up water all over the world, governments are moving fast to limit citizens’ ability to become water self-sufficient (as evidenced by the well-publicized Gary Harrington’s case in Oregon, in which the state criminalized the collection of rainwater in three ponds located on his private land, by convicting him on nine counts and sentencing him for 30 days in jail). Let’s put this criminalization in perspective:
  • Billionaire T. Boone Pickens owned more water rights than any other individuals in America, with rights over enough of the Ogallala Aquifer to drain approximately 200,000 acre-feet (or 65 billion gallons of water) a year. But ordinary citizen Gary Harrington cannot collect rainwater runoff on 170 acres of his private land. It’s a strange New World Order in which multibillionaires and elitist banks can own aquifers and lakes, but ordinary citizens cannot even collect rainwater and snow runoff in their own backyards and private lands.
  • In 2008, Goldman Sachs called water “the petroleum for the next century” and those investors who know how to play the infrastructure boom will reap huge rewards, during its annual “Top Five Risks” conference. Water is a U.S.$425 billion industry, and a calamitous water shortage could be a more serious threat to humanity in the 21st century than food and energy shortages, according to Goldman Sachs’s conference panel. Goldman Sachs has convened numerous conferences and also published lengthy, insightful analyses of water and other critical sectors (food, energy). Goldman Sachs is positioning itself to gobble up water utilities, water engineering companies, and water resources worldwide. Since 2006, Goldman Sachs has become one of the largest infrastructure investment fund managers and has amassed a $10 billion capital for infrastructure, including water.
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  • Citigroup’s top economist Willem Buitler said in 2011 that the water market will soon be hotter the oil market (for example, see this and this): “Water as an asset class will, in my view, become eventually the single most important physical-commodity based asset class, dwarfing oil, copper, agricultural commodities and precious metals.” In its recent 2012 Water Investment Conference, Citigroup has identified top 10 trends in the water sector, as follows:
  • Specifically, a lucrative opportunity in water is in hydraulic fracturing (or fracking), as it generates massive demand for water and water services. Each oil well developed requires 3 to 5 million gallons of water, and 80% of this water cannot be reused because it’s three to 10 times saltier than seawater. Citigroup recommends water-rights owners sell water to fracking companies instead of to farmers because water for fracking can be sold for as much as $3,000 per acre-foot instead of only $50 per acre/foot to farmers.
  • One of the world’s largest banks, JPMorgan Chase has aggressively pursued water and infrastructure worldwide. In October 2007, it beat out rivals Morgan Stanley and Goldman Sachs to buy U.K.’s water utility Southern Water with partners Swiss-based UBS and Australia’s Challenger Infrastructure Fund. This banking empire is controlled by the Rockefeller family; the family patriarch David Rockefeller is a member of the elite and secretive Bilderberg Group, Council on Foreign Relations, and Trilateral Commission.
  • Barclays PLC is a U.K.-based major global financial services provider operating in all over the world with roots in London since 1690; it operates through its subsidiary Barclays Bank PLC and its investment bank called Barclays Capital. Barclays Bank’s unit Barclays Global Investors manages an exchange-traded fund (ETF) called iShares S&P Global Water, which is listed on the London Stock Exchanges and can be purchased like any ordinary share through a broker. Touting the iShares S&P Global Water as offering “a broad based exposure to shares of the world’s largest water companies, including water utilities and water equipment stocks” of water companies around the world, this fund as of March 31, 2007 was valued at U.S.$33.8 million.
  • Deutsche Bank is one of the major players in the water sector worldwide. Its Deutsche Bank Advisors have identified water as a part of the climate investment strategies. In its presentation, “Global Warming: Implications for Investors,” they have identified the four following major areas for water investment: § Distribution and management: (1) Supply and recycling, (2) water distribution and sewage, (3) water management and engineering. § Water purification: (1) Sewage purification, (2) disinfection, (3) desalination, (4) monitoring. § Water efficiency (demand): (1) Home installation, (2) gray-water recycling, (3) water meters. § Water and nutrition: (1) Irrigation, (2) bottled water.
  • Moreover, Deutsche Bank has channeled €6 billion (U.S.$8.55 billion) into climate change funds, which will target companies with products that cut greenhouse gases or help people adapt to a warmer world, in sectors from agriculture to power and construction (Reuters, October 18, 2007). In addition to SCM, Deutsche Bank also has the RREEF Infrastructure, part of RREEF Alternative Investments, headquartered in New York with main hubs in Sydney, Singapore, and London. RREEF Infrastructure has more than €6.7 billion in assets under management. One of its main targets is utilities, including electricity networks, water-treatment or distribution operations, and natural-gas networks. In October 2007, RREEF partnered with Goldman Sachs, GE, Prudential, and Babcok & Brown Ltd. to bid unsuccessfully for U.K.’s water utility Southern Water. § Crediting the boom in European infrastructure investment, the RREEF fund by August 2007 had raised €2 billion (U.S.$2.8 billion); Europe’s infrastructure market is valued at between U.S.$4 trillion to U.S.$6 trillion (DowJones Financial News Online, August 7, 2007). § Bulgaria --- Deutsche Bank Bulgaria is planning to participate in large infrastructure projects, including public-private partnership projects in water and sewage worth up to €1 billion (Sofia Echo Media, February 26, 2008). § Middle East --- Along with Ithmaar Bank B.S.C. (an private-equity investment bank in Bahrain), Deutsche Bank co-managed a U.S.$2 billion Shari'a-compliant Infrastructure and Growth Capital Fund and plans to target U.S.$630 billion in regional infrastructure.
  • In my 2008 article, I overlooked the astonishingly large land purchases (298,840 acres, to be exact) by the Bush family in 2005 and 2006. In 2006, while on a trip to Paraguay for the United Nation’s children’s group UNICEF, Jenna Bush (daughter of former President George W. Bush and granddaughter of former President George H.W. Bush) reportedly bought 98,840 acres of land in Chaco, Paraguay, near the Triple Frontier (Bolivia, Brazil, and Paraguay). This land is said to be near the 200,000 acres purchased by her grandfather, George H.W. Bush, in 2005. The lands purchased by the Bush family sit over not only South America’s largest aquifer --- but the world’s as well --- Acuifero Guaraní, which runs beneath Argentina, Brazil, Paraguay, and Uruguay. This aquifer is larger than Texas and California combined. Online political magazine Counterpunch quoted Argentinean pacifist Adolfo Perez Esquivel, the winner of 1981 Nobel Peace Prize, who “warned that the real war will be fought not for oil, but for water, and recalled that Acuifero Guaraní is one of the largest underground water reserves in South America….”
  • Paul Merrell on 23 May 14
     
     Like the land rush for Arctic lands soon to be bared of ice by global warming, banksters are also moving to capitalize on looming water shortages, aided by IMF privatization loan conditions the the dwindling of potable water supplies globally via pollution, deforestation, and aquifer depletion. All trace to the common problem over human overpopulation of the planet.  
Paul Merrell

The Citadel Is Breached: Congress Taps the Fed for Infrastructure Funding | WEB OF DEBT... - 0 views

ellenbrown.com/...fed-for-infrastructure-funding

banksters Fed infrastructure-funding highway-trust-fund

shared by Paul Merrell on 18 Jan 16 - No Cached
  • In a landmark infrastructure bill passed in December, Congress finally penetrated the Fed’s “independence” by tapping its reserves and bank dividends for infrastructure funding. The bill was a start. But some experts, including Congressional candidate Tim Canova, say Congress should go further and authorize funds to be issued for infrastructure directly. For at least a decade, think tanks, commissions and other stakeholders have fought to get Congress to address the staggering backlog of maintenance, upkeep and improvements required to bring the nation’s infrastructure into the 21st century. Countries with less in the way of assets have overtaken the US in innovation and efficiency, while our dysfunctional Congress has battled endlessly over the fiscal cliff, tax reform, entitlement reform, and deficit reduction. Both houses and both political parties agree that something must be done, but they have been unable to agree on where to find the funds. Republicans aren’t willing to raise taxes on the rich, and Democrats aren’t willing to cut social services for the poor.
  • In December 2015, however, a compromise was finally reached. On December 4, the last day the Department of Transportation was authorized to cut checks for highway and transit projects, President Obama signed a 1,300-page $305-billion transportation infrastructure bill that renewed existing highway and transit programs. According to America’s civil engineers, the sum was not nearly enough for all the work that needs to be done. But the bill was nevertheless considered a landmark achievement, because Congress has not been able to agree on how to fund a long-term highway and transit bill since 2005. That was one of its landmark achievements. Less publicized was where Congress would get the money: largely from the Federal Reserve and Wall Street megabanks. The deal was summarized in a December 1st Bloomberg article titled “Highway Bill Compromise Would Take Money from US Banks”: The highway measure would be financed in part by a one-time use of Federal Reserve surplus funds and by a reduction in the 6 percent dividend that national banks receive from the Fed. . . . Banks with $10 billion or less in assets would be exempt from the cut. The Fed’s surplus capital comes from the 12 reserve banks. The highway bill would allow for a one-time draw of $19 billion from the surplus, which totaled $29.3 billion as of Nov. 25. . . . Banks vigorously fought the dividend cut, which was estimated to generate about $17 billion over 10 years for the highway trust fund.
Gary Edwards

Tax Code Tweak Might Make CNG for Vehicles More Available | RedState - 0 views

www.redstate.com/...ng-for-vehicles-more-available

William-Cassidy Natural-gas CNG Energy

shared by Gary Edwards on 08 May 12 - No Cached
  • Gary Edwards on 08 May 12
     
    Representative Dr. William Cassidy (R-LA) has put forward a common sense change to the tax code that will jump the economy of the USA forward, making use of plentiful and comparatively inexpensive natural gas. excerpt: The recent natural gas boom in the United States has been so wide-spread and profound that it has dropped natural gas prices to historical lows. These prices are so low that producers have begun to scale back operations as extraction has almost become uneconomical. We should be focused on exploring new commercial markets for natural gas to take advantage of such a low-cost energy source. Because technology and supply is currently available to sell the natural gas equivalent for about $1.50 a gallon compared with the current price of gasoline, it would seem natural for consumers to begin making the switch to compressed natural gas CNG (Compressed Natural Gas) vehicles. So if the technology is already available and we have at least a 100-year supply of natural gas right here in America, why aren't we all driving CNG cars? Unfortunately, the main obstacle is a lack of natural gas fuel infrastructure in our country. Currently in the United States, there are only 449 CNG fueling stations accessible to the public, which is dwarfed by the more than 157,000 gasoline stations. There are a number of proposals to spur natural gas infrastructure development in Washington. Not surprisingly, when it comes to Congress, the most talked about option involves subsidies for both natural gas vehicles and for the actual CNG fuel itself. While we should be using all of our available natural resources to aid in lowering the costs of transportation, the reality is that our country has neither the money to subsidize development nor the expertise to pick winners and losers in the energy and transportation sectors. As opposed to subsidies, I believe that a simple change to our tax code would help those companies that develop natural gas look at domestic retail infrastruc
Paul Merrell

How to Cut Infrastructure Costs in Half - nsnbc international | nsnbc international - 0 views

nsnbc.me/...t-infrastructure-costs-in-half

Trump infrastructure banksters publicly-owned-banks

shared by Paul Merrell on 28 Jan 17 - No Cached
  • Americans could save $1 trillion over 10 years by financing infrastructure through publicly-owned banks like the one that has long been operating in North Dakota.
  • President Donald Trump has promised to rebuild America’s airports, bridges, tunnels, roads and other infrastructure, something both Democrats and Republicans agree should be done. The country needs a full $3 trillion in infrastructure over the next decade. The $1 trillion plan revealed by Trump’s economic advisers relies heavily on public-private partnerships, and private equity firms are lining up for these plumbing investments. In the typical private equity water deal, for example, higher user rates help the firms earn annual returns of anywhere from 8 to 18 percent – more even than a regular for-profit water company might expect. But the price tag can come as a rude surprise for local ratepayers.
Paul Merrell

Japan readies package for Trump to help create 700,000 U.S. jobs | Reuters - 0 views

www.reuters.com/...-usa-trump-japan-idUSKBN15I0RS

Japan foreign-aid U.S.-infrastructure

shared by Paul Merrell on 05 Feb 17 - No Cached
  • Japan is putting together a package it says could generate 700,000 U.S. jobs and help create a $450-billion market, to present to U.S. President Donald Trump next week, government sources familiar with the plans said. The five-part package, to be unveiled when Prime Minister Shinzo Abe visits Trump on Feb. 10 in Washington, envisage investments in infrastructure projects such as high-speed trains and cybersecurity, said the sources, who declined to be identified as they were not authorized to speak to the media. Investing in overseas infrastructure projects dovetails with a key plank in Abe’s growth strategy, which is to export "high-quality" infrastructure technology. Japan will invest 17 trillion yen ($150 billion) in public and private funds over 10 years, the sources said. That would include helping develop high-speed railways in the northeastern United States, and the states of Texas and California, and renovating subway and train cars.
  • The package also includes cooperation in global infrastructure investment, joint development of robots and artificial intelligence, and cooperation in cybersecurity and space exploration, among others. The government may tap its foreign exchange reserves account to fund part of the package, the sources said. It may also get funding from megabanks and government-affiliated financial institutions, as well as the Government Pension Investment Fund, the Asahi and other newspapers reported.
  • Paul Merrell on 05 Feb 17
     
    Of course the world's largest economy is incapable of funding its own infrastructure maintenance and development.
Paul Merrell

Report: Verizon Claimed Public Utility Status To Get Government Perks - Slashdot - 0 views

news.slashdot.org/...status-to-get-government-perks

net-neutrality FCC Verizon banksters

shared by Paul Merrell on 29 May 14 - No Cached
  • Research for the Public Utility Law Project (PULP) has been released which details 'how Verizon deliberately moves back and forth between regulatory regimes, classifying its infrastructure either like a heavily regulated telephone network or a deregulated information service depending on its needs. The chicanery has allowed Verizon to raise telephone rates, all the while missing commitments for high-speed internet deployment' (PDF). In short, Verizon pushed for the government to give it common carrier privileges under Title II in order to build out its fiber network with tax-payer money. Result: increased service rates on telephone users to subsidize Verizon's 'infrastructure investment.' When it comes to regulations on Verizon's fiber network, however, Verizon has been pushing the government to classify its services as that of information only — i.e., beyond Title II. Verizon has made about $4.4 billion in additional revenue in New York City alone, 'money that's funneled directly from a Title II service to an array of services that currently lie beyond Title II's reach.' And it's all legal. An attorney at advocacy group Public Knowledge said it best: 'To expect that you can come in and use public infrastructure and funds to build a network and then be free of any regulation is absurd....When Verizon itself is describing these activities as a Title II common carrier, how can the FCC look at broadband internet and continue acting as though it's not a telecommunication network?'"
  • Paul Merrell on 29 May 14
     
    Let's also not forget that what is now named "Verizon" used to be named Bell Atlantic, one of the seven Baby Bells that were spun off by AT&T by government order during antitrust proceedings.  In other words, this is one of the companies rate-payers financed through a heavily-regulated analog telephony absolute monopoly. But Verizon wants to spread its wings and escape the chains of regulation as a telecommunications carrier. While having its cake and eating it to, according to this article. The FCC has poised itself through a proposed rule with the flexibility to postpone a decision on net neutrality.  AT&T famously was allowed to keep its R&D arm while being freed of the expense of upgrading the U.S. telephony network from analog to digital and from copper wire to fibre optic.  And pay for those Baby Bells to make that transition we did. I remember monthly bills for a two person office running as high as $1,100 a month for calls all carried from Baby Bell to AT&T and back to another Baby Bell. All at state-regulated rates with FCC looking the other way. But now Verizon, Comcast (the originally munipally regulated cable television monopolies) and the few other "competing" survivors of that broadband rollout, having had their infrastructure paid for by the ratepayers, want to fly off and begin charging us at the other end of the pipe,via charges to content providers that will be passed on to us. Leading to the squeezing out of Mom and Pop internet businesses by the big content providers that can afford the charges and pass them on to us. This is looking more and more like another massive rip-off of the customers who already paid for that infrasture. Is that banksters I smell, privatizing a enormous public utility in the name of free markets?      
Paul Merrell

Abbott to say No to Xi and the New Asia Infrastructure Investment Bank - Twice | nsnbc ... - 0 views

nsnbc.me/...tructure-investment-bank-twice

banksters de-dollarization AIIB China dollar-collapse Australia

shared by Paul Merrell on 10 Nov 14 - No Cached
  • Australian Prime Minister Tony Abbott is expected to say no to Chinese President Xi about joining the new Chinese-led Asia Infrastructure Development Bank (AIIB) when he will meet Xi at the ASEAN summit in Beijing this week. Abbott’s no to joining the bank would come against the advise of Australian treasurer Joe Hockey and after intense U.S. pressure for Australia to reject the proposed participation.
  • The decision to reject Australia’s participation in the 21 nation regional bank was made during a session of the Australian government’s National Security Committee and was explained as a “decision made on strategic grounds”. The decision has been criticized by several of Australia’s leading experts on economy. The Asian Development Bank  (ADB) estimated in 2011 that Asia would require some US$750 per year through 2020 to meet the needs for regional infrastructure development. In 2012 the ADB merely lent US$7.5 billion reported Australia’s Treasury.
  • A growing number of regional governments including Thailand, Malaysia, Indonesia, Laos, Myanmar and many other are gravitating towards China as China increasingly opens up its economy and banking system for foreign businesses and investment.
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  • Australian Treasurer Joe Hockey repeatedly stressed that Australia’s national interests would be better served by joining the new AIIB while Abbott attempted to position the AIIB as a “unilateral institution”. While it is correct that China is the main investor into the bank, it is a 21 nation project and Abbott’s explanation is given little credence by objective economists who are aware of the inherent problems with U.S. dominance and the dominance of rogue corporate cartels who hold e.g the World Bank, the IMF and the US government in a state of capture.
  • The development gains perspective, considering that the former Chief Economist of the Bank for International Settlements (BIS) William White in 2013, and other top-economists are predicting that a collapse of the U.S. dollar and the Bretton Woods institutions has become unavoidable, that it may happened overnight, and that it is likely to happen sometime by the end of 2014 or the first half of 2015. A recent analysis of the development described U.S. pressure against nations’ joining the new Asia Infrastructure Development Bank as the choice between gold and gunfire, noting that the U.S. applies relative soft pressure against Australia, while it won’t hesitate to provoke civil wars in for example Thailand to prolong the (f)ailing new American Century, just a little bit longer.
  • Gold or Gunfire: Hedging Against the Collapse of the Dollar
Paul Merrell

Documents Reveal Canada's Secret Hacking Tactics - The Intercept - 0 views

firstlook.org/...acking-cyberwar-secret-arsenal

surveillance state CSE NSA false-flag social media

shared by Paul Merrell on 24 Mar 15 - No Cached
  • Canada’s electronic surveillance agency has secretly developed an arsenal of cyberweapons capable of stealing data and destroying adversaries’ infrastructure, according to newly revealed classified documents. Communications Security Establishment, or CSE, has also covertly hacked into computers across the world to gather intelligence, breaking into networks in Europe, Mexico, the Middle East and North Africa, the documents show. The revelations, reported Monday by CBC News in collaboration with The Intercept, shine a light for the first time on how Canada has adopted aggressive tactics to attack, sabotage and infiltrate targeted computer systems. The latest disclosures come as the Canadian government debates whether to hand over more powers to its spies to disrupt threats as part of the controversial anti-terrorism law, Bill C-51.
  • Christopher Parsons, a surveillance expert at the University of Toronto’s Citizen Lab, told CBC News that the new revelations showed that Canada’s computer networks had already been “turned into a battlefield without any Canadian being asked: Should it be done? How should it be done?” According to documents obtained by The Intercept from National Security Agency whistleblower Edward Snowden, CSE has a wide range of powerful tools to perform “computer network exploitation” and “computer network attack” operations. These involve hacking into networks to either gather intelligence or to damage adversaries’ infrastructure, potentially including electricity, transportation or banking systems. The most well-known example of a state-sponsored “attack” operation involved the use of Stuxnet, a computer worm that was reportedly developed by the United States and Israel to sabotage Iranian nuclear facilities. One document from CSE, dated from 2011, outlines the range of methods the Canadian agency has at its disposal as part of a “cyber activity spectrum” to both defend against hacking attacks and to perpetrate them. CSE says in the document that it can “disable adversary infrastructure,” “control adversary infrastructure,” or “destroy adversary infrastructure” using the attack techniques. It can also insert malware “implants” on computers to steal data.
  • According to one top-secret NSA briefing paper, dated from 2013, Canada is considered an important player in global hacking operations. Under the heading “NSA and CSEC cooperate closely in the following areas,” the paper notes that the agencies work together on “active computer network access and exploitation on a variety of foreign intelligence targets, including CT [counter terrorism], Middle East, North Africa, Europe, and Mexico.” (The NSA had not responded to a request for comment at time of publication. The agency has previously told The Intercept that it “works with foreign partners to address a wide array of serious threats, including terrorist plots, the proliferation of weapons of mass destruction, and foreign aggression.”) Notably, CSE has gone beyond just adopting a range of tools to hack computers. According to the Snowden documents, it has a range of “deception techniques” in its toolbox. These include “false flag” operations to “create unrest,” and using so-called “effects” operations to “alter adversary perception.” A false-flag operation usually means carrying out an attack, but making it look like it was performed by another group — in this case, likely another government or hacker. Effects operations can involve sending out propaganda across social media or disrupting communications services. The newly revealed documents also reveal that CSE says it can plant a “honeypot” as part of its deception tactics, possibly a reference to some sort of bait posted online that lures in targets so that they can be hacked or monitored.
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  • The apparent involvement of CSE in using the deception tactics suggests it is operating in the same area as a secretive British unit known as JTRIG, a division of the country’s eavesdropping agency, Government Communications Headquarters, or GCHQ. Last year, The Intercept published documents from Snowden showing that the JTRIG unit uses a range of effects operations to manipulate information online, such as by rigging the outcome of online polls, sending out fake messages on Facebook across entire countries, and posting negative information about targets online to damage their reputations.
Paul Merrell

Google, ACLU call to delay government hacking rule | TheHill - 0 views

thehill.com/...-delay-government-hacking-rule

surveillance state Rule-41 oppostion Google ACLU

shared by Paul Merrell on 23 Nov 16 - No Cached
  • A coalition of 26 organizations, including the American Civil Liberties Union (ACLU) and Google, signed a letter Monday asking lawmakers to delay a measure that would expand the government’s hacking authority. The letter asks Senate Majority Leader Mitch McConnellMitch McConnellTrump voices confidence on infrastructure plan GOP leaders to Obama: Leave Iran policy to Trump GOP debates going big on tax reform MORE (R-Ky.) and Minority Leader Harry ReidHarry ReidNevada can’t trust Trump to protect public lands Sanders, Warren face tough decision on Trump Google, ACLU call to delay government hacking rule MORE (D-Nev.), plus House Speaker Paul RyanPaul RyanTrump voices confidence on infrastructure plan GOP leaders to Obama: Leave Iran policy to Trump GOP debates going big on tax reform MORE (R-Wis.), and House Minority Leader Nancy Pelosi (D-Calif.) to further review proposed changes to Rule 41 and delay its implementation until July 1, 2017. ADVERTISEMENTThe Department of Justice’s alterations to the rule would allow law enforcement to use a single warrant to hack multiple devices beyond the jurisdiction that the warrant was issued in. The FBI used such a tactic to apprehend users of the child pornography dark website, Playpen. It took control of the dark website for two weeks and after securing two warrants, installed malware on Playpen users computers to acquire their identities. But the signatories of the letter — which include advocacy groups, companies and trade associations — are raising questions about the effects of the change. 
  • Paul Merrell on 23 Nov 16
     
    ".. no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." Fourth Amendment. The changes to Rule 41 ignore the particularity requirement by allowing the government to search computers that are not particularly identified in multiple locations not particularly identifed, in other words, a general warrant that is precisely the reason the particularity requirement was adopted to outlaw.
Paul Merrell

U.S. gives big, secret push to Internet surveillance - CNET - 0 views

www.cnet.com/...-push-to-internet-surveillance

surveillance state ISP-wiretap-immunity DHS NSA DoJ

shared by Paul Merrell on 03 Apr 14 - No Cached
  • Senior Obama administration officials have secretly authorized the interception of communications carried on portions of networks operated by AT&T and other Internet service providers, a practice that might otherwise be illegal under federal wiretapping laws. The secret legal authorization from the Justice Department originally applied to a cybersecurity pilot project in which the military monitored defense contractors' Internet links. Since then, however, the program has been expanded by President Obama to cover all critical infrastructure sectors including energy, healthcare, and finance starting June 12. "The Justice Department is helping private companies evade federal wiretap laws," said Marc Rotenberg, executive director of the Electronic Privacy Information Center, which obtained over 1,000 pages of internal government documents and provided them to CNET this week. "Alarm bells should be going off." Those documents show the National Security Agency and the Defense Department were deeply involved in pressing for the secret legal authorization, with NSA director Keith Alexander participating in some of the discussions personally. Despite initial reservations, including from industry participants, Justice Department attorneys eventually signed off on the project.
  • The Justice Department agreed to grant legal immunity to the participating network providers in the form of what participants in the confidential discussions refer to as "2511 letters," a reference to the Wiretap Act codified at 18 USC 2511 in the federal statute books. The Wiretap Act limits the ability of Internet providers to eavesdrop on network traffic except when monitoring is a "necessary incident" to providing the service or it takes place with a user's "lawful consent." An industry representative told CNET the 2511 letters provided legal immunity to the providers by agreeing not to prosecute for criminal violations of the Wiretap Act. It's not clear how many 2511 letters were issued by the Justice Department. In 2011, Deputy Secretary of Defense William Lynn publicly disclosed the existence of the original project, called the DIB Cyber Pilot, which used login banners to inform network users that monitoring was taking place. In May 2012, the pilot was turned into an ongoing program -- broader but still voluntary -- by the name of Joint Cybersecurity Services Pilot, with the Department of Homeland Security becoming involved for the first time. It was renamed again to Enhanced Cybersecurity Services program in January, and is currently being expanded to all types of companies operating critical infrastructure.
  • Another e-mail message from a Justice Department attorney wondered: "Will the program cover all parts of the company network -- including say day care centers (as mentioned as a question in a [deputies committee meeting]) and what are the policy implications of this?" The deputies committee includes the deputy secretary of defense, the deputy director of national intelligence, the deputy attorney general, and the vice chairman of the Joint Chiefs of Staff. "These agencies are clearly seeking authority to receive a large amount of information, including personal information, from private Internet networks," says EPIC staff attorney Amie Stepanovich, who filed a lawsuit against Homeland Security in March 2012 seeking documents relating to the program under the Freedom of Information Act. "If this program was broadly deployed, it would raise serious questions about government cybersecurity practices." In January, the Department of Homeland Security's privacy office published a privacy analysis (PDF) of the program saying that users of the networks of companies participating in the program will see "an electronic login banner [saying] information and data on the network may be monitored or disclosed to third parties, and/or that the network users' communications on the network are not private."
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  • Paul Rosenzweig, a former Homeland Security official and founder of Red Branch Consulting, compared the NSA and DOD asking the Justice Department for 2511 letters to the CIA asking the Justice Department for the so-called torture memos a decade ago. (They were written by Justice Department official John Yoo, who reached the controversial conclusion that waterboarding was not torture.) "If you think of it poorly, it's a CYA function," Rosenzweig says. "If you think well of it, it's an effort to secure advance authorization for an action that may not be clearly legal." A report (PDF) published last month by the Congressional Research Service, a non-partisan arm of Congress, says the executive branch likely does not have the legal authority to authorize more widespread monitoring of communications unless Congress rewrites the law. "Such an executive action would contravene current federal laws protecting electronic communications," the report says.
  • An internal Defense Department presentation cites as possible legal authority a classified presidential directive called NSPD 54 that President Bush signed in January 2008. Obama's own executive order , signed in February 2013, says Homeland Security must establish procedures to expand the data-sharing program "to all critical infrastructure sectors" by mid-June. Those are defined as any companies providing services that, if disrupted, would harm national economic security or "national public health or safety."
  • Paul Merrell on 03 Apr 14
     
    Article is from April 2013, before the Snowden disclosures. 
Gary Edwards

Google News - 0 views

news.google.com/?ar=1382554873

China China-USA-debt USA-debt

shared by Gary Edwards on 23 Oct 13 - No Cached
  • Gary Edwards on 23 Oct 13
     
    Exhaustive article about how the Chinese are converting US DEBT into economic assets - converting US assets to Chinese owned assets. Instead of breaking our knees to collect on our debt, the Chinese are taking land. Exactly what the Japanese did back in the 1980's. Convert the dollars into hard assets; business's and land. And get the conversion done before the dollar collapses totally. Intro: "What in the world is China up to?  Over the past several years, the Chinese government and large Chinese corporations (which are often at least partially owned by the government) have been systematically buying up businesses, homes, farmland, real estate, infrastructure and natural resourcesall over America.  In some cases, China appears to be attempting to purchase entire communities in one fell swoop.  So why is this happening?  Is this some form of "economic colonization" that is taking place?  Some have speculated that China may be intending to establish "special economic zones" inside the United States modeled after the very successful Chinese city of Shenzhen.  Back in the 1970s, Shenzhen was just a very small fishing village, but now it is a sprawling metropolis of over 14 million people.  Initially, these "special economic zones" were only established within China, but now the Chinese government has been buying huge tracts of land in foreign countries such as Nigeria and establishing special economic zones in those nations.  So could such a thing actually happen in America?  Well, according to Dr. Jerome Corsi, a plan being pushed by the Chinese Central Bank would set up "development zones" in the United States that would allow China to "establish Chinese-owned businesses and bring in its citizens to the U.S. to work."  Under the plan, some of the $1.17 trillion that the U.S. owes China would be converted from debt to "equity".  As a result, "China would own U.S. businesses, U.S. infrastructure and U.S. high-value la
Paul Merrell

The Legend of the Phoenix - 0 views

www.informationclearinghouse.info/article37154.htm

war & peace drone attacks Phoenix-Program counter-insurgency

shared by Paul Merrell on 21 Dec 13 - No Cached
  • It would seem the CIA has gone back into their archives, blown the dust off the Phoenix Program, and put it into play again as the “Drone War.” The similarities with the Drone War are readily evident to anyone old enough to know of the Phoenix Program. For those who aren’t old enough or who have forgotten, the Phoenix Program is usually referred to as an assassination program and was the subject of investigation by the Senate’s “Church Committee.” Indisputably, thousands of South Vietnamese civilians were killed under this CIA directed program.
  • Phoenix was far more than a mere assassination program , however. It was a Counter-Insurgency, COIN, program, using the tactic of counter-terrorism, including assassination, against the insurgent’s so-called infrastructure. This was the Vietnamese civilian population in which the insurgent, the Viet Cong guerilla, operated and from some of whom they drew their support. To the U.S., these civilians were the Viet Cong Infrastructure, the VCI. And the VCI was the target to be terrorized by any means necessary in the hope that they would turn against the Viet Cong. The VCI would have included the families, close and extended kinship groups, of alleged active Viet Cong combatants, fellow villagers, and other Vietnamese civilians who were not actively opposed to the Viet Cong. Some of this “support” was voluntary and some coerced. As the Phoenix Program went on, with its assassinations, torture practices, and “disappearances,” more support became voluntary as Vietnamese peasants turned against the U.S. and the South Vietnamese government as a result of the program. An error in identification of a victim was irrelevant to those in control of the program, the CIA, as it still served the purpose of terrorizing the civilian population, which was the true purpose of the program.
  • For the Viet Cong, this was a classic example of achieving the guerilla’s goal of having a civilian population turn against a government by a government’s own harsh over-reaction to the guerilla threat. Today, a guerilla and the people whom they are amongst are deemed “terrorists” if they find themselves on the wrong side of a domestic conflict that the U.S. has taken a side in, such as Yemen. As we saw in Libya, and see in Syria, these guerillas can become instant U.S. allies who must be supported, if, or when, the U.S. makes policy changes. But unless those U.S. policy changes occur, these groups remain part of the global terrorist network of “associated forces” with al Qaeda, in the eyes of CIA and military officials, and targeted with drones. From the relatively large number of civilian victims of drone attacks as claimed by residents of Pakistan’s Federally Administered Tribal Areas (FATA) and the political party, Pakistan Tehreek Insaf (PTI), this Drone Program has all the hallmarks of the Phoenix Program.
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  • Without more transparency by the government, no other conclusion can be drawn that the reason we see so many civilians killed by drones, while denying it as John Brennan did, is because we are targeting civilians as the “infrastructure.” While Anwar al-Awlaki was declared to be an “operational leader,” with the extremely elastic category of “infrastructure” as used in Vietnam, his “operational” activity may have only been “spreading antigovernment propaganda and rumors,” as the Rand Corporation put it, which led to his extrajudicial execution. How many other American citizens might that reach?
  • Paul Merrell on 21 Dec 13
     
    Spot on analysis by a retired Navy lawyer who knows his U.S. military history.The striking parallels he points to between contemporary U.S. drone terrorism and the notorious Viet Nam War Phoenix Program terrorism are no accident. Among the super-hawks of the War Party, there has been a persistent meme that the U.S. military suffered no defeat in Viet Nam, that the vaunted "counter-insurgency" strategy and tactics were working, and that the war was lost by politicians and the American public who lost the nerve to continue the war.  If you put your blinders on firmly enough to pretend that the North and South Vietnamese were separate people, there's an element of truth to that myth. The South Vietnamese Viet Cong guerrillas were decimated by 1970. But the North and South Vietnamese were in fact one people of a single nation, who had united to defeat and evict the French military force. The division into two nations was to have been only a one-year thing, prelude to national election of a government for a reunited Viet Nam. It was the U.S. puppet government of the South that, realizing they could not win the election, reneged on allowing it in the South.  Long before the Viet Cong became a shadow of its former force, the Vietnamese from the North had responded to the betrayal of the treaty by sending North Vietnamese regular army troops ("NVA") to the South, spearheaded by the same battle-hardened men who had defeated the French. And the U.S. military was well and truly overwhelmed by the NVA's strategy and tactics, forced to retreat into strongholds from which they ventured only in force. The NVA's Tet Offensive in 1968 failed to succeed in the effort to capture multiple Vietnamese cities concurrently. But the number, weaponry, and power of their force caused Lyndon Johnson to realize that the U.S. generals had been lying to him, that the U.S. was not on the brink of victory, and that there was a very long slog ahead with an unknown outcome if the U.S. continu
Paul Merrell

China stakes claim in Central and Southeast Europe | Business New Europe - 0 views

www.bne.eu/...m-central-and-southeast-europe

war & peace economic-warfare EU China infrastructure-investments

shared by Paul Merrell on 22 Dec 14 - No Cached
  • A Chinese agreement to finance a high-speed railway from Belgrade to Bucharest was one of around $10bn worth of investments, mainly in the energy and infrastructure sectors, signed during a China-Central and Eastern Europe summit this week. By funding the railway, Beijing hopes to establish a rapid connection from Greece’s Pireaus Port through the Balkans to the EU member states of Central Europe. Several agreements on the €1.5bn railway, which will be financed by soft loans from state-owned China Exim Bank, were signed between China, Hungary and Serbia on December 17. When the line is operational, the travel time between Belgrade and Budapest will be slashed from the current eight hours to just 2.4 hours. Macedonian counterpart Nikola Gruevski was also in attendance as there are plans to extend the line south to Macedonia and Greece in future. Chinese Prime Minister Li Keqiang, who headed a 200-strong delegation to Belgrade, said he expected the line would benefit both China and the countries of Central and Eastern Europe and the EU, according to a Serbian government statement.
  • Chinese shipping giant Cosco Pacific took over the management rights to half of Piraeus port and is now expanding two container terminals under a 35-year concession agreement, with the aim of turning the Greek port into one of Europe’s top five container ports. However, to take full advantage of Cosco’s investment in Piraeus and its potential to become a gateway to the CEE region, investments into transport links across the Balkans are needed. "We will propose construction of a rapid land and maritime route based on the Budapest-Belgrade railroad and the Greek port of Piraeus to improve regional connectivity," Li told journalists in advance of the summit, South China Morning Post reported. Investments into infrastructure to transport raw materials into China and Chinese manufactured goods to foreign markets is nothing new. Closer to home, Beijing is looking to fund a railway across Central Asia to create a direct rail link between its factories and the massive wholesale bazaars of Kyrgyzstan and Uzbekistan. Further afield, in May 2014, China signed an agreement in Kenya to build a new line from Mombasa to Nairobi that will extend to four other East African states in future.
  • While land rail routes across Eurasia to Europe are also being developed, sea shipping remains the cheapest route from the Far East to Europe, and Piraeus is a convenient entry point to the continent. While growth in the region has been patchy since the recent global economic crisis, in the longer-term the EU member states of Central and Eastern Europe and future entrants from the Balkans are expected to converge with longer-established EU members from Western Europe in terms of spending power. Since 2012, when the first China-CEE summit was held in Warsaw, Chinese attention on the region has steadily increased, with a focus on energy and infrastructure. Aside from the access to new markets, there are further commercial benefits for China, as Chinese companies are selected for lucrative construction contracts on projects funded by Chinese state-owned banks. On December 16, the opening day of the summit, Li told the 16 regional leaders to attend that China would launch a $3bn investment fund for the region.
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  • Also on December 16 Albania signed a deal with Exim Bank on funding for the completion of construction works on the Arber motorway that links the capital Tirana with Macedonia. In the energy sector, Serbian and Chinese officials have signed a loan agreement for the second stage of the Kostolac B thermal power project, which includes the construction of a new 350MW plant and the expansion of the adjacent Drmno open-pit coal mine. The value of the project is expected to be $715mn, of which $608mn will come from a 20-year China Exim Bank loan. In neighbouring Bosnia, Eximbank has signed an agreement with the Bosnian Federation government for a €667.8mn credit to fund construction of the 450MW unit 7 at the thermal power plant Tuzla. China's Gezhouba Group is expected to build the unit.
  • The timing of the summit, amid a sharp falling off of Russia’s influence, may also have helped China extend its influence in the region. With some exceptions, notably Serbia, most of the would-be EU member states in Southeast Europe have opted to join EU and US sanctions against Russia over Ukraine. Tit for tat sanctions imposed by Moscow caused trade between Eastern Europe and Russia to drop, a trend that is likely to continue amid the new economic crisis in Russia. Meanwhile, in a further retrenchment from the region, Russian President Vladimir Putin announced on December 1 that Russia will scrap the planned South Stream pipeline that would have supplies numerous states across the region with gas. China, meanwhile, has no political axe to grind in Eastern Europe, but hopes to take advantage of Russia’s weakness to make further inroads commercially. Poland and other countries in the region are, for example, looking to China as a potential market for food products following the Russian embargo. This would add to already booming trade ties. According to Chinese Commerce Minister Gao Hucheng, trade between China and Eastern Europe may top $60bn in 2014 - five times its 2003 level, AFP reported.
Paul Merrell

Egypt and UAE discuss Security Cooperation: Nibbing NATO's Covert Infrastructure in the... - 0 views

nsnbc.me/...vert-infrastructure-in-the-bud

war & peace terrorists™ Egypt UAE terrorist-organizations-list™ NATO U.S.-foreign-policy

shared by Paul Merrell on 12 Jan 15 - No Cached
  • Egyptian Interior Minister Mohamed Ibrahim and an Egyptian delegation left Egypt on Sunday for a three-day visit and meetings with UAE Interior Minister Saif Bin Zayed Al-Nahyan and Emitati police chiefs. In November 2014 the UAE published a “terror list” including 85 organizations. Among them, many who are known to be involved in activities as proxy for Gulf Arab, Western and NATO government’s in covert war and regime change operations. 
  • The agenda reportedly focuses on the expansion of cooperation in intelligence, countering terrorism, the arrest of suspects, smuggling and crime. Both Egypt and the UAE are members of Interpol.
  • In November 2014 the UAE published a list of 85 organizations which it had designated as terrorist organizations. The list includes a number of Muslim Brotherhood and Al-Qaeda linked organizations which are known to be used as proxies for certain Gulf Arab as well as Western and NATO covert wars and terrorist operations. The development prompted nsnbc editor-in-Chief and independent analyst Christof Lehmann to note that the “UAE Terror List nibs NATO’s covert Infrastructure in the Bud”.
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  • The list also includes organizations which are currently legally operating in at lest seven European countries and at least two organizations which are currently legally operating in the United States. Most noteworthy with regards to the United States’ covert regime-change program is that the USA’s terror list includes CANVAS, a.k.a. as DEMOZ. Virtually identical CANVAS flyers instructing protesters in combating police were found during Rabaa al-Adaweya and Nahda Square sit ins and the violent protests in the Ukrainian capital Kiev. Both situations ended in mass bloodshed and evidence strongly suggesting that cells embedded within the protest organizers shot and killed both police officers and protesters with the intention to create civil war like circumstances. Other organizations with known ties to Western and certain Gulf Arab countries covert war on Libya, Mali, Syria, Iraq and beyond include Jabhat al-Nusrah, Fatah al-Islam, Daesh, a.k.a. ISIS, ISIL or Islamic State, Boko Haram, Terik-i-Taliban, the Houthi movement, Liwa-al-Islam, as well as the ISIS associated Ansar Bayt al-Maqdis. (see complete list below).
  • The list also includes Fatah al-Islam which is legally operating in Italy, the Islamic Association in Finland, the Muslim Association of Sweden, Det Islamske Forbundet in Norway, Islamic Relief in the United Kingdom, The Cordoba Foundation in the United Kingdom, Council on American Relations CAIR in the United States, which is known for having close ties to networks around Zbigniev Brzezinski and the Rockefeller family, the Federation of Islamic Organizations in Europe, the Islamic Society of Germany, the Islamic Society of Denmark, the League of Muslims in Belgium and others. While many of the included organizations project an image of charitable or religious organizations or lobbies, many have been or are actively involved in covert infiltration and recruitment projects in cooperation with intelligence services, radicalization, subversion, financing of terrorism, or regime change operations.
Paul Merrell

AU, China agree big infrastructure deal | News24 - 0 views

www.news24.com/...g-infrastructure-deal-20150127

economic-warfare African-Union China New-Silk-Road road rail air

shared by Paul Merrell on 16 Feb 15 - No Cached
  • China and the African Union agreed on Tuesday an ambitious plan to develop road, rail and air transport routes to link capitals across the continent.African Union chief Nkosazana Dlamini-Zuma praised the proposal at "the most substantive project the AU has ever signed with a partner", although the ambitious project that includes highways and high speed railways is at present just a commitment to develop the infrastructure, and contains few details.The memorandum of understanding was signed at AU headquarters in Addis Ababa, ahead of a summit meeting of the leaders of the 54-nation pan-African bloc on Friday.At present, the quickest route to travel across from one side of Africa to the other can involve flight connections routed via Europe, although major airport hubs are rapidly growing, including Addis Ababa and Nairobi in the east, Johannesburg in the south and Abuja in west Africa.
  • This is the document of the century... the aviation agreement marks a new area for co-operation between the AU and China," said Zhang Ming, Chinese vice minister for foreign affairs, after the signing ceremony."Africa is a vast continent where it must be possible to travel without transiting via Paris or London."China, the continent's largest trading partner, is already involved in a raft of transport infrastructure projects.
Paul Merrell

Will Trump hop on an American Silk Road? | Asia Times - 0 views

www.atimes.com/...l-trump-hop-american-silk-road

globalization China U.S.-spending war & peace

shared by Paul Merrell on 27 Jan 17 - No Cached
  • ysteria reigns supreme at the dawn of the Trump era, with the President rebranded across the whole ideological spectrum as an American Mao or even an American Hitler. Let’s step away from this “American [media] carnage” to examine a few facts concerning the unofficial G2: US-China relations. A case can be made that Beijing has already landed a 1-2-3 punch, pre-empting the possibility of a US-initiated trade war.
  • It started with Jack Ma’s by now notorious visit to Trump Tower, when he developed his idea of helping small American businesses sell their products in China and across Asia through Alibaba’s network, thus creating at least “1 million jobs” (Ma’s number) in the US. Then came President Xi Jinping’s masterclass at Davos, where he positioned himself as Ronald Xi Reagan selling “inclusive” globalization to the stalwarts of international turbo-capitalism. Finally Ma again, also at Davos, came up with a crystal clear, cause-and-effect formulation on globalization and US economic distress.
  • Ma said, “In the past 30 years, companies like IBM, Cisco and Microsoft made tons of money.” The problem was how the US spent the wealth: “In the past 30 years, America has had 13 wars at a cost of US$14.2 trillion.” So what if the US “had spent part of that money on building up their infrastructure, helping white-collar and blue-collar workers? You’re supposed to spend money on your own people. It’s not that other countries steal American jobs. It is your strategy – that you did not distribute the money in a proper way.” In the meantime, something quite extraordinary happened at the Asian Financial Forum in Hong Kong, one day before Xi’s Davos speech. China Investment Corporation (CIC) chairman Ding Xuedong, referring to Trump’s much-vaunted US$1 trillion infrastructure building plan, said that created fabulous investment opportunities for China and his US$800 billion sovereign fund. According to Ding, Washington will need at least an astonishing US$8 trillion to fund the infrastructure spectacular. Federal government and US private investors are not enough: “They have to rely on foreign investors.” And CIC is ready for it – focusing already on “alternative investments in the US”.
  • Paul Merrell on 27 Jan 17
     
    Pepe Escobar
Paul Merrell

NSA Spied on Chinese Government and Networking Firm Huawei - SPIEGEL ONLINE - 0 views

www.spiegel.de/...king-firm-huawei-a-960199.html

surveillance state NSA China Huawei NSA-targets

shared by Paul Merrell on 23 Mar 14 - No Cached
  • According to documents viewed by SPIEGEL, America'a NSA intelligence agency put considerable efforts into spying on Chinese politicians and firms. One major target was Huawei, a company that is fast becoming a major Internet player.
  • The American government conducted a major intelligence offensive against China, with targets including the Chinese government and networking company Huawei, according to documents from former NSA worker Edward Snowden that have been viewed by SPIEGEL. Among the American intelligence service's targets were former Chinese President Hu Jintao, the Chinese Trade Ministry, banks, as well as telecommunications companies. But the NSA made a special effort to target Huawei. With 150,000 employees and €28 billion ($38.6 billion) in annual revenues, the company is the world's second largest network equipment supplier. At the beginning of 2009, the NSA began an extensive operation, referred to internally as "Shotgiant," against the company, which is considered a major competitor to US-based Cisco. The company produces smartphones and tablets, but also mobile phone infrastructure, WLAN routers and fiber optic cable -- the kind of technology that is decisive in the NSA's battle for data supremacy. A special unit with the US intelligence agency succeeded in infiltrating Huwaei's network and copied a list of 1,400 customers as well as internal documents providing training to engineers on the use of Huwaei products, among other things.
  • According to a top secret NSA presentation, NSA workers not only succeeded in accessing the email archive, but also the secret source code of individual Huwaei products. Software source code is the holy grail of computer companies. Because Huawei directed all mail traffic from its employees through a central office in Shenzhen, where the NSA had infiltrated the network, the Americans were able to read a large share of the email sent by company workers beginning in January 2009, including messages from company CEO Ren Zhengfei and Chairwoman Sun Yafang. "We currently have good access and so much data that we don't know what to do with it," states one internal document. As justification for targeting the company, an NSA document claims that "many of our targets communicate over Huawei produced products, we want to make sure that we know how to exploit these products." The agency also states concern that "Huawei's widespread infrastructure will provide the PRC (People's Republic of China) with SIGINT capabilities." SIGINT is agency jargon for signals intelligence. The documents do not state whether the agency found information indicating that to be the case.
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  • The operation was conducted with the involvement of the White House intelligence coordinator and the FBI. One document states that the threat posed by Huawei is "unique". The agency also stated in a document that "the intelligence community structures are not suited for handling issues that combine economic, counterintelligence, military influence and telecommunications infrastructure from one entity."
  • Editor's note: A longer version of this story will appear in German in the issue of SPIEGEL to be published on Monday.
Paul Merrell

UK Cryptographers Call For Publication of Deliberately Weakened Protocols, Products | T... - 0 views

threatpost.com/...102301

surveillance state NSA GCHQ cryptography surveillance-reform

shared by Paul Merrell on 17 Sep 13 - No Cached
  • A group of cryptographers in the UK has published a letter that calls on authorities in that country and the United States to conduct an investigation to determine which security products, protocols and standards have been deliberately weakened by the countries’ intelligence services. The letter, signed by a number of researchers from the University of Bristol and other universities, said that the NSA and British GCHQ “have been acting against the interests of the public that they are meant to serve.” The appeal comes a couple of weeks after leaked documents from the NSA and its UK counterpart, Government Communications Headquarters, showed that the two agencies have been collaborating on projects that give them the ability to subvert encryption protocols and also have been working with unnamed security vendors to insert backdoors into hardware and software products. Security experts have been debating in recent weeks which products, standards and protocols may have been deliberately weakened, but so far no information has been forthcoming.
  • “By weakening cryptographic standards, in as yet undisclosed ways, and by inserting weaknesses into products which we all rely on to secure critical infrastructure, we believe that the agencies have been acting against the interests of the public that they are meant to serve. We find it shocking that agencies of both the US and UK governments now stand accused of undermining the systems which protect us. By weakening all our security so that they can listen in to the communications of our enemies, they also weaken our security against our potential enemies,” the letter says.
  • Published on Monday, the letter is signed by cryptographers from the University of Bristol, University of London, University of Birmingham, University of Luxembourg, University of Southampton, University of Surrey, University of Kent, Newcastle University and University College London. In it, the researchers call on the relevant authorities to publicly name the products and standards that have been weakened in order to inform users which systems they should avoid. “We call on the relevant parties to reveal what systems have been weakened so that they can be repaired, and to create a proper system of oversight with well-defined public rules that clearly forbid weakening the security of civilian systems and infrastructures. The statutory Intelligence and Security Committee of the House of Commons needs to investigate this issue as a matter of urgency. In the modern information age we all need to have complete trust in the basic infrastructure that we all use,” the letter says.
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  • In the weeks since the documents detailing the NSA’s cryptographic capabilities emerged, further details about exactly which protocols the agency can attack successfully and which standards it may have influenced have been scarce. NIST, the U.S. agency that develops technical standards for cryptography, among other things, as denied accusations that the NSA was able to weaken some of the NIST standards. However, at the same time, NIST officials have issued a recommendation that people no longer use one of the encryption standards it previously published.
Paul Merrell

The American Deep State, Deep Events, and Off-the-Books Financing | Global Research - 0 views

www.globalresearch.ca/...5376904

banksters CIA 9-11 arms-deals opium congtinuity-of-government

shared by Paul Merrell on 07 Apr 14 - No Cached
  • It is alleged that some of the bail money that released Sturgis and the other Watergate burglars was drug money from the CIA asset turned drug trafficker, Manuel Artime, and delivered by Artime’s money-launderer, Ramón Milián Rodríguez. After the Iran-Contra scandal went public, Milián Rodríguez was investigated by a congressional committee – not for Watergate, but because, in support of the Contras, he had managed two Costa Rican seafood companies, Frigorificos and Ocean Hunter, that laundered drug money.6
  • In the 1950s Wall Street was a dominating complex. It included not just banks and other financial institutions but also the oil majors whose cartel arrangements were successfully defended against the U.S. Government by the Wall Street law firm Sullivan and Cromwell, home to the Dulles brothers. The inclusion of Wall Street conforms with Franklin Roosevelt’s observation in 1933 to his friend Col. E.M. House that “The real truth … is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.”18 FDR’s insight is well illustrated by the efficiency with which a group of Wall Street bankers (including Nelson Rockefeller’s grandfather Nelson Aldrich) were able in a highly secret meeting in 1910 to establish the Federal Reserve System – a system which in effect reserved oversight of the nation’s currency supply and of all America’s banks in the not impartial hands of its largest.19 The political clout of the quasi-governmental Federal Reserve Board was clearly demonstrated in 2008, when Fed leadership secured instant support from two successive administrations for public money to rescue the reckless management of Wall Street banks: banks Too Big To Fail, and of course far Too Big To Jail, but not Too Big To Bail.20
  • since its outset, the CIA has always had access to large amounts of off-the books or offshore funds to support its activities. Indeed, the power of the purse has usually worked in an opposite sense, since those in control of deep state offshore funds supporting CIA activities have for decades also funded members of Congress and of the executive – not vice versa. The last six decades provide a coherent and continuous picture of historical direction being provided by this deep state power of the purse, trumping and sometimes reversing the conventional state. Let us resume some of the CIA’s sources of offshore and off-the-books funding for its activities. The CIA’s first covert operation was the use of “over $10 million in captured Axis funds to influence the [Italian] election [of 1948].”25 (The fundraising had begun at the wealthy Brook Club in New York; but Allen Dulles, then still a Wall Street lawyer, persuaded Washington, which at first had preferred a private funding campaign, to authorize the operation through the National Security Council and the CIA.)26 Dulles, together with George Kennan and James Forrestal, then found a way to provide a legal source for off-the-books CIA funding, under the cover of the Marshall Plan. The three men “helped devise a secret codicil [to the Marshall Plan] that gave the CIA the capability to conduct political warfare. It let the agency skim millions of dollars from the plan.”27
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  • The international lawyers of Wall Street did not hide from each other their shared belief that they understood better than Washington the requirements for running the world. As John Foster Dulles wrote in the 1930s to a British colleague, The word “cartel” has here assumed the stigma of a bogeyman which the politicians are constantly attacking. The fact of the matter is that most of these politicians are highly insular and nationalistic and because the political organization of the world has under such influence been so backward, business people who have had to cope realistically with international problems have had to find ways for getting through and around stupid political barriers.21
  • In the 1960s and especially the 1970s America began to import more and more oil from the Middle East. But the negative effect on the U.S. balance of payments was offset by increasing arms and aviation sales to Iran and Saudi Arabia. Contracts with companies like Northrop and especially Lockheed (the builder of the CIA’s U-2) included kickbacks to arms brokers, like Kodama Yoshio in Japan and Adnan Khashoggi in Saudi Arabia, who were also important CIA agents. Lockheed alone later admitted to the Church Committee that it had provided $106 million in commissions to Khashoggi between 1970 and 1975, more than ten times what it had paid to the next most important connection, Kodama.31 These funds were then used by Khashoggi and Kodama to purchase pro-Western influence. But Khashoggi, advised by a team of ex-CIA Americans like Miles Copeland and Edward Moss, distributed cash, and sometimes provided women, not just in Saudi Arabia but around the world – including cash to congressmen and President Nixon in the United States.32 Khashoggi in effect served as a “cutout,” or representative, in a number of operations forbidden to the CIA and the companies he worked with. Lockheed, for one, was conspicuously absent from the list of military contractors who contributed illicitly to Nixon’s 1972 election campaign. But there was no law prohibiting, and nothing else to prevent their official representative, Khashoggi, from cycling $200 million through the bank of Nixon’s friend Bebe Rebozo.33
  • The most dramatic use of off-the-books drug profits to finance foreign armies was seen in the 1960s CIA-led campaign in Laos. There the CIA supplied airstrips and planes to support a 30,000-man drug-financed Hmong army. At one point Laotian CIA station chief Theodore Shackley even called in CIA aircraft in support of a ground battle to seize a huge opium caravan on behalf of the larger Royal Laotian Army.30
  • At the time of the Marshall Plan slush fund in Europe, the CIA also took steps which resulted in drug money to support anti-communist armies in the Far East. In my book American War Machine I tell how the CIA, using former OSS operative Paul Helliwell, created two proprietary firms as infrastructure for a KMT army in Burma, an army which quickly became involved in managing and developing the opium traffic there. The two firms were SEA Supply Inc. in Bangkok and CAT Inc. (later Air America) in Taiwan. Significantly, the CIA split ownership of CAT Inc.’s plane with KMT bankers in Taiwan – this allowed the CIA to deny responsibility for the flights when CAT planes, having delivered arms from Sea Supply to the opium-growing army, then returned to Taiwan with opium for the KMT. Even after the CIA officially severed its connection to the KMT Army in 1953, its proprietary firm Sea Supply Inc. supplied arms for a CIA-led paramilitary force, PARU, that also was financed, at least in part, by the drug traffic.28 Profits from Thailand filtered back, in part through the same Paul Helliwell, as donations to members from both parties in Congress. Thai dictator Phao Sriyanon, a drug trafficker who was then alleged to be the richest man in the world, hired lawyer Paul Helliwell…as a lobbyist in addition to [former OSS chief William] Donovan [who in 1953-55 was US Ambassador to Thailand]. Donovan and Helliwell divided the Congress between them, with Donovan assuming responsibility for the Republicans and Helliwell taking the Democrats.29
  • The power exerted by Khashoggi was not limited to his access to funds and women. By the 1970s, Khashoggi and his aide Edward Moss owned the elite Safari Club in Kenya.34 The exclusive club became the first venue for another and more important Safari Club: an alliance between Saudi and other intelligence agencies that wished to compensate for the CIA’s retrenchment in the wake of President Carter’s election and Senator Church’s post-Watergate reforms.35
  • As former Saudi intelligence chief Prince Turki bin Faisal once told Georgetown University alumni, In 1976, after the Watergate matters took place here, your intelligence community was literally tied up by Congress. It could not do anything. It could not send spies, it could not write reports, and it could not pay money. In order to compensate for that, a group of countries got together in the hope of fighting Communism and established what was called the Safari Club. The Safari Club included France, Egypt, Saudi Arabia, Morocco, and Iran.36 Prince Turki’s candid remarks– “your intelligence community was literally tied up by Congress. …. In order to compensate for that, a group of countries got together … and established what was called the Safari Club.” – made it clear that the Safari Club, operating at the level of the deep state, was expressly created to overcome restraints established by political decisions of the public state in Washington (decisions not only of Congress but also of President Carter).
  • Specifically Khashoggi’s activities involving corruption by sex and money, after they too were somewhat curtailed by Senator Church’s post-Watergate reforms, appear to have been taken up quickly by the Bank of Credit and Commerce International (BCCI), a Muslim-owned bank where Khashoggi’s friend and business partner Kamal Adham, the Saudi intelligence chief and a principal Safari Club member, was a part-owner.37 In the 1980s BCCI, and its allied shipping empire owned by the Pakistani Gokal brothers, supplied financing and infrastructure for the CIA’s (and Saudi Arabia’s) biggest covert operation of the decade, support for the Afghan mujahedin. To quote from a British book excerpted in the Senate BCCI Report: “BCCI’s role in assisting the U.S. to fund the Mujaheddin guerrillas fighting the Soviet occupation is drawing increasing attention. The bank’s role began to surface in the mid-1980′s when stories appeared in the New York Times showing how American security operatives used Oman as a staging post for Arab funds. This was confirmed in the Wall Street Journal of 23 October 1991 which quotes a member of the late General Zia’s cabinet as saying ‘It was Arab money that was pouring through BCCI.’ The Bank which carried the money on from Oman to Pakistan and into Afghanistan was National Bank of Oman, where BCCI owned 29%.”38
  • In 1981 Vice-president Bush and Saudi Prince Bandar, working together, won congressional approval for massive new arms sales of AWACS (airborne warning and control system) aircraft to Saudi Arabia. In the $5.5 billion package, only ten percent covered the cost of the planes. Most of the rest was an initial installment on what was ultimately a $200 billion program for military infrastructure through Saudi Arabia.41 It also supplied a slush fund for secret ops, one administered for over a decade in Washington by Prince Bandar, after he became the Saudi Ambassador (and a close friend of the Bush family, nicknamed “Bandar Bush”). In the words of researcher Scott Armstrong, the fund was “the ultimate government-off-the-books.” Not long after the AWACS sale was approved, Prince Bandar thanked the Reagan administration for the vote by honoring a request by William Casey that he deposit $10 million in a Vatican bank to be used in a campaign against the Italian Communist Party. Implicit in the AWACS deal was a pledge by the Saudis to fund anticommunist guerrilla groups in Afghanistan, Angola, and elsewhere that were supported by the Reagan Administration.42 The Vatican contribution, “for the CIA’s long-time clients, the Christian Democratic Party,” of course continued a CIA tradition dating back to 1948.
  • The activities of the Safari Club were exposed after Iranians in 1979 seized the records of the US Embassy in Tehran. But BCCI support for covert CIA operations, including Iran-Contra, continued until BCCI’s criminality was exposed at the end of the decade. Meanwhile, with the election of Ronald Reagan in 1980, Washington resumed off-budget funding for CIA covert operations under cover of arms contracts to Saudi Arabia. But this was no longer achieved through kickbacks to CIA assets like Khashoggi, after Congress in 1977 made it illegal for American corporations to make payments to foreign officials. Instead arrangements were made for payments to be returned, through either informal agreements or secret codicils in the contracts, by the Saudi Arabian government itself. Two successive arms deals, the AWACS deal of 1981 and the al-Yamamah deal of 1985, considerably escalated the amount of available slush funds.
  • It is reported in two books that the BCCI money flow through the Bank of Oman was handled in part by the international financier Bruce Rappaport, who for a decade, like Khashoggi, kept a former CIA officer on his staff.39 Rappaport’s partner in his Inter Maritime Bank, which interlocked with BCCI, was E.P. Barry, who earlier had been a partner in the Florida money-laundering banks of Paul Helliwell.40
  • After a second proposed major U.S. arms sale met enhanced opposition in Congress in 1985 from the Israeli lobby, Saudi Arabia negotiated instead a multi-billion pound long-term contract with the United Kingdom – the so-called al-Yamamah deal. Once again overpayments for the purchased weapons were siphoned off into a huge slush fund for political payoffs, including “hundreds of millions of pounds to the ex-Saudi ambassador to the US, Prince Bandar bin Sultan.”43 According to Robert Lacey, the payments to Prince Bandar were said to total one billion pounds over more than a decade.44 The money went through a Saudi Embassy account in the Riggs Bank, Washington; according to Trento, the Embassy’s use of the Riggs Bank dated back to the mid-1970s, when, in his words, “the Saudi royal family had taken over intelligence financing for the United States.”45 More accurately, the financing was not for the United States, but for the American deep state.
  • This leads me to the most original and important thing I have to say. I believe that these secret funds from BCCI and Saudi arms deals – first Khashoggi’s from Lockheed and then Prince Bandar’s from the AWACS and al-Yamamah deals – are the common denominator in all of the major structural deep events (SDEs) that have afflicted America since the supranational Safari Club was created in l976. I am referring specifically to 1) the covert US intervention in Afghanistan (which started about 1978 as a Safari Club intervention, more than a year before the Russian invasion), 2) the 1980 October Surprise, which together with an increase in Saudi oil prices helped assure Reagan’s election and thus give us the Reagan Revolution, 3) Iran-Contra in 1984-86, 4) and – last but by no means least – 9/11. That is why I believe it is important to analyze these events at the level of the supranational deep state. Let me just cite a few details.
  • 1) the 1980 October Surprise. According to Robert Parry, Alexandre de Marenches, the principal founder of the Safari Club, arranged for William Casey (a fellow Knight of Malta) to meet with Iranian and Israeli representatives in Paris in July and October 1980, where Casey promised delivery to Iran of needed U.S. armaments, in exchange for a delay in the return of the U.S. hostages in Iran until Reagan was in power. Parry suspects a role of BCCI in both the funding of payoffs for the secret deal and the subsequent flow of Israeli armaments to Iran.46 In addition, John Cooley considers de Marenches to be “the Safari Club player who probably did most to draw the US into the Afghan adventure.”47 2) the Iran-Contra scandal (including the funding of the Contras, the illegal Iran arms sales, and support for the Afghan mujahideen There were two stages to Iran-Contra. For twelve months in 1984-85, after meeting with Casey, King Fahd of Saudi Arabia, in the spirit of the AWACS deal, supported the Nicaraguan Contras via Prince Bandar through a BCCI bank account in Miami. But in April 1985, after the second proposed arms sale fell through, McFarlane, fearing AIPAC opposition, terminated this direct Saudi role. Then Khashoggi, with the help of Miles Copeland, devised a new scheme in which Iranian arms sales involving Israel would fund the contras. The first stage of Iran-Contra was handled by Prince Bandar through a BCCI account in Miami; the second channel was handled by Khashoggi through a different BCCI account in Montecarlo. The Kerry-Brown Senate Report on BCCI also transmitted allegations from a Palestinian-American businessman, Sam Bamieh, that Khashoggi’s funds from BCCI for arms sales to Iran came ultimately from King Fahd of Saudi Arabia, who “was hoping to gain favor with Ayatollah Ruhollah Khomeini.”48
  • 3) 9/11 When the two previously noted alleged hijackers or designated culprits, al-Mihdhar and al-Hazmi, arrived in San Diego, a Saudi named Omar al-Bayoumi both housed them and opened bank accounts for them. Soon afterwards Bayoumi’s wife began receiving monthly payments from a Riggs bank account held by Prince Bandar’s wife, Princess Haifa bint Faisal.49 In addition, Princess Haifa sent regular monthly payments of between $2,000 and $3,500 to the wife of Osama Basnan, believed by various investigators to be a spy for the Saudi government. In all, “between 1998 and 2002, up to US $73,000 in cashier cheques was funneled by Bandar’s wife Haifa … – to two Californian families known to have bankrolled al-Midhar and al-Hazmi.”50 Although these sums in themselves are not large, they may have been part of a more general pattern. Author Paul Sperry claims there was possible Saudi government contact with at least four other of the alleged hijackers in Virginia and Florida. For example, “9/11 ringleader Mohamed Atta and other hijackers visited s home owned by Esam Ghazzawi, a Saudi adviser to the nephew of King Fahd.”51
  • But it is wrong to think of Bandar’s accounts in the Riggs Bank as uniquely Saudi. Recall that Prince Bandar’s payments were said to have included “a suitcase containing more than $10 million” that went to a Vatican priest for the CIA’s long-time clients, the Christian Democratic Party.52 In 2004, the Wall Street Journal reported that the Riggs Bank, which was by then under investigation by the Justice Department for money laundering, “has had a longstanding relationship with the Central Intelligence Agency, according to people familiar with Riggs operations and U.S. government officials.”53 Meanwhile President Obiang of Equatorial Guinea “siphoned millions from his country’s treasury with the help of Riggs Bank in Washington, D.C.”54 For this a Riggs account executive, Simon Kareri, was indicted. But Obiang enjoyed State Department approval for a contract with the private U.S. military firm M.P.R.I., with an eye to defending offshore oil platforms owned by ExxonMobil, Marathon, and Hess.55 Behind the CIA relationship with the Riggs Bank was the role played by the bank’s overseas clients in protecting U.S. investments, and particularly (in the case of Saudi Arabia and Equatorial Guinea), the nation’s biggest oil companies.
  • The issue of Saudi Embassy funding of at least two (and possibly more) of the alleged 9/11 hijackers (or designated culprits) is so sensitive that, in the 800-page Joint Congressional Inquiry Report on 9/11, the entire 28-page section dealing with Saudi financing was very heavily redacted.56 A similar censorship occurred with the 9/11 Commission Report: According to Philip Shenon, several staff members felt strongly that they had demonstrated a close Saudi government connection to the hijackers, but a senior staff member purged almost all of the most serious allegations against the Saudi government, and moved the explosive supporting evidence to the report’s footnotes.57 It is probable that this cover-up was not designed for the protection of the Saudi government itself, so much as of the supranational deep state connection described in this essay, a milieu where American, Saudi, and Israeli elements all interact covertly. One sign of this is that Prince Bandar himself, sensitive to the anti-Saudi sentiment that 9/11 caused, has been among those calling for the U.S. government to make the redacted 28 pages public.58
  • This limited exposure of the nefarious use of funds generated from Saudi arms contracts has not created a desire in Washington to limit these contracts. On the contrary, in 2010, the second year of the Obama administration, The Defense Department … notified Congress that it wants to sell $60 billion worth of advanced aircraft and weapons to Saudi Arabia. The proposed sale, which includes helicopters, fighter jets, radar equipment and satellite-guided bombs, would be the largest arms deal to another country in U.S. history if the sale goes through and all purchases are made.59 The sale did go through; only a few congressmen objected.60 The deep state, it would appear, is alive and well, and impervious to exposures of it. It is clear that for some decades the bottom-upwards processes of democracy have been increasingly supplanted by the top-downwards processes of the deep state.
  • But the deeper strain in history, I would like to believe, is in the opposite direction: the ultimate diminution of violent top-down forces by the bottom-up forces of an increasingly integrated civil society.61 In the last months we have had Wikileaks, then Edward Snowden, and now the fight between the CIA and its long-time champion in Congress, Dianne Feinstein. It may be time to see a systemic correction, much as we did after Daniel Ellsberg’s release of the Pentagon Papers, which was followed by Watergate and the Church Committee reforms. I believe that to achieve this correction there must be a better understanding of deep events and of the deep state. Ultimately, however, whether we see a correction or not will depend, at least in part, on how much people care.
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