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Paul Merrell

Virtual Economy's Phantom Job Gains Are Based on Statistical Fraud. And More Fraud Is i... - 0 views

  • Washington can’t stop lying.  Don’t be convinced by last Thursday’s job report that it is your fault if you don’t have a job. Those 288,000 jobs and 6.1% unemployment rate are more fiction than reality.  In his analysis of the June Labor Data from the Bureau of Labor Statistics, John Williams (www.ShadowStats.com) wrote that the 288,000 June jobs and 6.1% unemployment rate  are “far removed from common experience and underlying reality.” Payrolls were overstated by “massive, hidden shifts in seasonal adjustments,” and the Birth-Death model added the usual phantom jobs.  Williams reports that “the seasonal factors are changed each and every month as part of the concurrent seasonal-adjustment process, which is tantamount to a fraud,” as the changes in the seasonal factors can inflate the jobs number.  While the headline numbers always are on a new basis, the prior reporting is not revised so as to be consistent.
  • The monthly unemployment rates are not comparable, so one doesn’t know whether the official U.3 rate (the headline rate that the financial press reports) went up or down. Moreover, the rate does not count discouraged workers who, unable to find a job, cease looking. To be counted among the U.3 unemployed, the person must have actively looked for work during the four weeks prior to the survey. The U.3 rate automatically declines as people who have been unable to find jobs cease trying to find one and thereby cease to be counted as unemployed. There is a second official measure of unemployment that includes people who have been discouraged for less than one year. That rate, known as U.6, is seldom reported and is double the 6.1% rate. Since 1994 there has been no official measure than includes discouraged people who have not looked for a job for more than a year. Including all discouraged workers produces an unemployment rate that currently stands at 23.1%, almost four times the rate that the financial press reports.
  • What you can take away from this is the opposite of what the presstitute media would have you believe.  The measured rate of unemployment can decline simply because large numbers of the unemployed become discouraged workers, cease looking for work, and cease to be counted in the U.3 and U.6 measures of the unemployment rate.   The decline in the employment-population ratio from 63% prior to the 2008 downturn to 59% today reflects the growth in discouraged workers.  Indeed, the ratio has not recovered its previous level during the alleged recovery, an indication that the recovery is an illusion created by the understated measure of inflation that is used to deflate nominal GDP growth.
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  • Insurance (most likely the paperwork of Obamacare) contributed 8,500 jobs. As so few can purchase homes, “real estate rental and leasing” contributed 8,500 jobs. Professional and business services contributed 67,000 jobs, but 57% of these jobs were in employment services, temporary help services, and services to buildings and dwellings.   That old standby, education and health services, accounted for 33,700 jobs consisting mainly of ambulatory health care services jobs and social assistance jobs of which three-quarters are in child day care services.   The other old standby, waitresses and bartenders, gave us 32,800 jobs, and amusements, gambling, and recreation gave us 3,500 jobs.
  • In other words, the economy did not gain 288,000 new jobs last month.   But let’s assume the economy did gain 288,000 jobs and exam where the claimed jobs are reported to be. Of the alleged 288,000 new jobs, 16,000, or 5.5 percent are in manufacturing, which is not very promising for engineers and blue collar workers.  Growth in goods producing jobs has almost disappeared from the US economy.  As explained below, to alter this problem the government is going to change definitions in order to artificially inflate manufacturing jobs. In June private services account for 82 percent of the supposed new jobs.  The jobs are found mainly in non-tradable domestic services that pay little and cannot be exported to help to close the large US trade deficit. Wholesale and retail trade account for 55,300 jobs.  Do you believe sales are this strong  when retailers are closing stores and when shopping malls are closing?
  • Another indication that there has been no recovery is that Sentier Research’s index of real median household income continued to decline for two years after the alleged recovery began in June 2009.   There has been a slight upturn in real median household income since June 2011, but income remains far below the pre-recession level.   The Birth-Death model adds an average of 62,000 jobs to the reported payroll jobs numbers each month. This arbitrary boost to the payroll jobs numbers is in addition to the Bureau of Labor Statistics’ underlying assumption that unreported jobs lost to business failures are matched by unreported new jobs from new business startups, an assumption that does not well fit an economy that fell into recession and is unable to recover.   John Williams concludes that in current BLS reporting, “the aggregate average overstatement of employment change easily exceeds 200,000 jobs per month.”
  • Local government, principally education, gave us 22,000 jobs.   So, where are the jobs for university graduates?  They are practically non-existent. Think of all the MBAs, but June had only 2,300 jobs for management of companies and enterprises. Think of the struggle to get into law and medical schools.  There’s no job payoff. June had jobs for 1,200 in legal services, which includes receptionists and para-legals.  Where are all the law school graduates finding jobs? Offices of physicians (mainly people who fill out the mandated paperwork and comply with all the regulations, which have multiplied under ObamaCare) hired 4,000 people.  Outpatient care centers hired 700 people.  Nursing care facilities hired 2,400 people.  So where are the jobs for the medical school graduates? Aside from all the exaggerations in the jobs numbers of which ShadowStats.com has informed us, just taking the jobs as reported, what kind of economy do these jobs indicate:  a superpower whose pretensions are to exercise hegemony over the world or an economy in which opportunities are disappearing and incomes are falling?
  • Do you think that this jobs picture would be the same if the government in Washington cared about you instead of the mega-rich? Some interesting numbers can be calculated from table A.9 in the BLS press release.  John Williams advises that the BLS is inconsistent in the methods it uses to tabulate the data in table A.9 and that the data is also afflicted by seasonal adjustment problems.  However, as the unemployment rate and payroll jobs are reported regardless of their problems, we can also report the BLS finding that in June 523,000 full-time jobs disappeared and 800,000 part time jobs appeared. Here, perhaps, we have yet another downside of the misnamed Obama “Affordable Care Act.”  Employers are terminating full-time employment and replacing the jobs with part-time employment in order to come in under the 50-person full time employment that makes employers responsible for fringe benefits such as health care. Americans are already experiencing difficulties making ends meet, despite the alleged “recovery.”  If yet another half million Americans have been forced onto part-time pay with consequent loss of health care and other benefits, consumer demand is further compressed, with the consequence, unless hidden by statistical trickery, of a 2nd quarter negative GDP and thus officially the reappearance of recession.
  • What will the government do if a recession cannot be hidden?  If years of unprecedented money printing and Keynesian fiscal deficits have not brought recovery, what will bring recovery?  How far down will US living standards fall for the 99% in order that the 1% can become ever more mega-rich while Washington wastes our diminishing substance exercising hegemony over the world? Just as Washington lied to you about Saddam Hussein’s weapons of mass destruction, Assad’s use of chemical weapons, Russian invasion of Ukraine, Waco, and any number of false flag or nonexistent attacks such as Tonkin Gulf, Washington lies to you about jobs and economic recovery.  Don’t believe the spin that you are unemployed because you are shiftless and prefer government handouts to work.  The government does not want you to know that you are unemployed because the corporations offshored American jobs to foreigners and because economic policy only serves the oversized banks and the one percent. Just as the jobs and inflation numbers are rigged and the financial markets are rigged, the corrupt Obama regime is now planning to rig US manufacturing and trade statistics in order to bury all evidence of offshoring’s adverse impact on our economy.
  • The federal governments Economic Classification Policy Committee has come up with a proposal to redefine fact as fantasy in order to hide offshoring’s contribution to the US trade deficit, artificially inflate the number of US manufacturing jobs, and redefine foreign-made manufactured products as US manufactured products.  For example, Apple iPhones made in China and sold in Europe would be reported as a US export of manufactured goods. Read Ben Beachy’s important report on this blatant statistical fraud in CounterPunch’s July 4th weekend edition: http://www.counterpunch.org/2014/07/04/we-didnt-offshore-manufacturing/ China will not agree that the Apple brand name means that the phones are not Chinese production. If the Obama regime succeeds with this fraud, the iPhones would be counted twice, once by China and once by the US, and the double-counting would exaggerate world GDP. For years I have exposed the absurd claim that offshoring is merely the operation of free trade, and I have exposed the incompetent studies by such as Michael Porter at Harvard and Matthew Slaughter at Dartmouth that claimed to prove that the US was benefitting from offshoring its manufacturing.  My book published in 2012 in Germany and in 2013 in the US, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West, proves that offshoring has dismantled the ladders of upward mobility that made the US an opportunity society and is responsible for the decline in US economic growth. The lost jobs and decline in the middle class has contributed to the rise in income inequality, the destruction of tax base for cities and states, and loss of population in America’s once great manufacturing centers.
  • For the most part economists have turned a blind eye. Economists serve the globalists.  It pays them well. The corruption in present-day America is total. Psychologists and anthropologists serve war and torture. Economists serve globalism and US financial hegemony. Physicists and chemists serve the war industries. Physicists and computer geeks serve NSA. The media serves the government and the corporations. The political parties serve the six powerful private interest groups that rule the country. No one serves truth and liberty. I predict that within ten years truth and liberty will be forbidden words uttered only by “domestic extremists” who are a threat that must be exterminated without due process of law. America has left us.  We now have the tyranny of the Orwellian state that rules, not by the ballot box and Constitution, but by force and propaganda.
Gary Edwards

The Daily Bell - The Economist Hoists Its Battle Balloon? - 1 views

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    "The first world war... Look back with angst ... Thanks to its military, economic and soft power, America is still indispensable, particularly in dealing with threats like climate change and terror, which cross borders. But unless America behaves as a leader and the guarantor of the world order, it will be inviting regional powers to test their strength by bullying neighbouring countries. The chances are that none of the world's present dangers will lead to anything that compares to the horrors of 1914. Madness, whether motivated by race, religion or tribe, usually gives ground to rational self-interest. But when it triumphs, it leads to carnage, so to assume that reason will prevail is to be culpably complacent. That is the lesson of a century ago. - Economist Magazine Dominant Social Theme: Beware the coming wars ... Free-Market Analysis: You can't make this stuff up. The top men in the globalist community have been hard at work building wars and potential wars, and now it's time to let 'er rip. This is one dominant social theme we saw coming miles away. We've been writing about its imminence for years, and predicting war and more war as internationalists try to blunt the effect of the Internet Reformation. After the Gutenberg press blew up the Middle Ages and the Roman Catholic Church besides, the globalists of the era used economic chaos, war and the invention of copyright to fight back. We predicted they would use the same tools this time around and have no reason to revise our predictions thus far. The only thing we've consistently pointed out that has not yet been addressed is the inability of the top men to launch a full-out world war because that would involve nuclear weapons. And lacking a full-out war, we have questioned how successful the strategy can be. Obviously, the top elites see something we don't. Or perhaps they are willing to risk an all-out war anyway - as they retreat into reported fully-stocked, underground "cities." Here's more fro
Paul Merrell

Glenn Greenwald: The NSA Can "Literally Watch Every Keystroke You Make" - 0 views

  • On Sunday, the German publication Der Spiegel revealed new details about secretive hacking—a secretive hacking unit inside the NSA called the Office of Tailored Access Operations, or TAO. The unit was created in 1997 to hack into global communications traffic. Still with us, Jameel Jaffer, deputy legal director of the ACLU, director of the ACLU’s Center for Democracy, and Glenn Greenwald, the journalist who first broke the story about Edward Snowden. Glenn, can you just talk about the revelations in Der Spiegel?
  • And one of the ways that they’re doing it is that they intercept products in transit, such as if you order a laptop or other forms of Internet routers or servers and the like, they intercept it in transit, open the box, implant the malware, factory-seal it and then send it back to the user. They also exploit weaknesses in Google and YouTube and Yahoo and other services, as well, in order to implant these devices. It’s unclear to what extent, if at all, the companies even know about it, let alone cooperate in it. But what is clear is that they’ve been able to compromise the physical machines themselves, so that it makes no difference what precautions you take in terms of safeguarding the sanctity of your online activity.
  • But we’ve actually been working, ourselves, on certain stories that should be published soon regarding similar interdiction efforts. And one of the things that I think is so amazing about this, Amy, is that the U.S. government has spent the last three or four years shrilly, vehemently warning the world that Chinese technology companies are unsafe to purchase products from, because they claim the Chinese government interdicts these products and installs surveillance, backdoors and other forms of malware onto the machinery so that when you get them, immediately your privacy is compromised. And they’ve actually driven Chinese firms out of the U.S. market and elsewhere with these kinds of accusations. Congress has convened committees to issue reports making these kind of accusations about Chinese companies. And yet, at the same time, the NSA is doing exactly that which they accuse these Chinese companies of doing. And there’s a real question, which is: Are these warnings designed to steer people away from purchasing Chinese products into the arms of the American industry so that the NSA’s ability to implant these devices becomes even greater, since now everybody is buying American products out of fear that they can no longer buy Chinese products because this will happen to them?
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  • And the final thing I want to say is, you know, all this talk about amnesty for Edward Snowden, and it’s so important that the rule of law be applied to him, it’s really quite amazing. Here’s Michael Hayden. He oversaw the illegal warrantless eavesdropping program implemented under the Bush administration. He oversaw torture and rendition as the head of the CIA. James Clapper lied to the face of Congress. These are felonies at least as bad, and I would say much worse, than anything Edward Snowden is accused of doing, and yet they’re not prosecuted. They’re free to appear on television programs. The United States government in Washington constantly gives amnesty to its highest officials, even when they commit the most egregious crimes. And yet the idea of amnesty for a whistleblower is considered radical and extreme. And that’s why a hardened felon like Michael Hayden is free to walk around on the street and is treated on American media outlets as though he’s some learned, wisdom-drenched elder statesman, rather than what he is, which is a chronic criminal.
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    Greenwald asks a very good question about the U.S. government accusing the Chinese government of cyber-espionage and the government's finding that Chinese-manufactured ware pose a security risk. Was that intended to drive people to purchase hardware that comes equipped with NSA backdoors? The flip side, of course, is whether the world should be beating feet to purchase their hardware from the Chinese in order to escape the NSA backdoors. Then there is the question of how those backdoors might have made their way into the hardware devices without the acquiescence of their manufacturers, who surely would have realized that their businesses might take enormous financial hits if knowledge of the backdoors became public? Bribing key staff? The manufacturers named in the Der Spiegel article surely are going to face some hard questions and they may face some very unhappy shareholders if their stock prices take a dive. It would be fun to see a shareholder's derivative class action against one of these companies for having acquiesced to NSA implantation of backdoors, leading to the disclosure and the fall in stock price. Caption the case as Wall Street, Inc. v. National Security Agency, dba Seagate Technology, PLC, then watch the feathers and blood fly.  "Seagate is the company the world trusts to store our lives - our files and photos, our libraries and histories, our science and progress."   Yes, and your stockholders trusted you not to endanger their investment by adding NSA backdoors in your products.
Gary Edwards

Saving Detroit | PBS - I, Cringely . The Pulpit . - 0 views

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    Imagine if we took the basic design parameters of my DA-2A and applied them to a modern automobile. The new design would have to carry two people and luggage, have an empty weight of no more than 625 lbs. and use an 85-horsepower engine. With a loaded weight of 1125 lbs., the car would have a power-to-weight ratio comparable to a Chevy Corvette and be just as quick -- probably even faster than the airplane's 140 mph. Driven only 20 percent over posted speed limits as God intended, the car would easily get 50+ miles per gallon. Who wouldn't want to buy one? At the heart of manufacturing is the simple concept of buying raw materials in volume at a low price per pound and selling manufactured products at retail for a high price per pound. The eventual retail price per pound is determined by the marketplace and ideally it ought to be high enough for the manufacturer to make a profit. The very light weight of our DA-2A car analog suggests that it ought to be inexpensive to buy, but maybe all that means is we have to look beyond the car industry to bicycles.
Gary Edwards

Federal gestapo illegally raid Gibson Guitar factories, arbitrarily confiscate millions... - 0 views

  • For the second time in two years, armed federal agents have illegally raided the manufacturing facilities of Gibson Guitars Corp., this time confiscating more than a million dollars worth of imported wood and ebony -- and they did so without proper notice or warning, without any valid reason, and without lawful charges of any kind.
  • Gibson, one of the world's premier guitar manufacturers, and a company that has continually tried to honestly and readily abide by domestic and international laws concerning its material sourcing while continuing to provide quality products to its customers, has for some reason landed in the cross fire of the federal gestapo
  • Though Gibson has not violated any laws, and has gone above and beyond mandated requirements for sourcing sustainable wood and other materials for its instruments, the heavy hand of a bloated and out-of-control government has decided to unlawfully target the company for extinction.According to a recent press statement made by Henry Juszkiewicz, Gibson's Chairman and CEO, armed marshals stormed the company's Nashville, Tenn., and Memphis, Tenn., manufacturing facilities on August 24, and proceeded to evacuate the buildings, shut down production, order all employees to go home, and steal more than a million dollars worth of rosewood and ebony that had been legally imported from India
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  • US officials have actually refused to tell Gibson what it allegedly did wrong, and why the raid was conducted. The company was never notified of any potential violations prior to the raid, and no official charges were ever filed. By all appearances, the government simply decided one day to unlawfully storm the company's manufacturing units with loaded weapons, and is now attempting to destroy one of the last honest American manufacturers in existence
  • The fact that the US federal government is refusing to disclose why it raided Gibson, as well as its added failure to press any proper legal charges against the company, suggests that there is truly no legitimate reason at all. Every guitar manufacturer imports rosewood and ebony from India and various other countries -- and many do not even have the same high quality standards as Gibson -- and yet, for whatever reason, Gibson has become the government's chosen target, despite the fact that it has broken no laws and has never been convicted of any crimes.
  • In today's America, in other words, government officials do not even need a legitimate reason to target a company, seize its goods, and shut it down. In total desecration of the rule of law, the federal government simply targets whomever it wants to these days, without reason or cause, and sends in its taxpayer-funded minions to perform the execution
  • If you own a guitar, you too could be targeted by the Feds based on corrupted Lacey Law
  • those who own Gibson guitars, and potentially even guitars of other brands, may want to prepare themselves for potential targeting by the federal government as well. The vague wording of the US Department of Agriculture's (USDA) Lacey Act of 2008, which is the law that was somehow used to warrant the Gibson raids, places all guitar owners and resellers in the cross fire of potential federal scrutiny."According to [The Lacey Act], if you bought a guitar from us and you resell it, you are criminally liable," stated Juszkiewicz.
  • So there you have it. The US has literally devolved into an unbridled police state where the federal government freely raids companies, arrests innocent individuals, and performs other acts of domestic terrorism for absolutely no reason at all. The enemies of freedom that now run our government presume guilt rather than innocence, and they deny the constitutional protocols of due process that they are tasked with upholding in the process.
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    (NaturalNews) Due process under the law and assumed innocence before being proven guilty are two concepts that are apparently no longer applicable in the United States of America, at least as far as the federal government is concerned. Learn more: http://www.naturalnews.com/033454_Gibson_Guitar_armed_raid.html#ixzz1Wd8Nf600
Gary Edwards

Jim Kunstler's 2014 Forecast - Burning Down The House | Zero Hedge - 0 views

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    Incredible must read analysis. Take away: the world is going to go "medevil". It's the only way out of this mess. Since the zero hedge layout is so bad, i'm going to post as much of the article as Diigo will allow: Jim Kunstler's 2014 Forecast - Burning Down The House Submitted by Tyler Durden on 01/06/2014 19:36 -0500 Submitted by James H. Kunstler of Kunstler.com , Many of us in the Long Emergency crowd and like-minded brother-and-sisterhoods remain perplexed by the amazing stasis in our national life, despite the gathering tsunami of forces arrayed to rock our economy, our culture, and our politics. Nothing has yielded to these forces already in motion, so far. Nothing changes, nothing gives, yet. It's like being buried alive in Jell-O. It's embarrassing to appear so out-of-tune with the consensus, but we persevere like good soldiers in a just war. Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical "recovery" and the "shale gas miracle" on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations. Life in the USA is like living in a broken-down, cob-jobbed, vermin-infested house that needs to be gutted, disinfected, and rebuilt - with the hope that it might come out of the restoration process retaining the better qualities of our heritage.
Paul Merrell

Josh Mandel: Welders Make $150,000? Bring Back Shop Class - WSJ.com - 0 views

  • In American high schools, it is becoming increasingly hard to defend the vanishing of shop class from the curriculum. The trend began in the 1970s, when it became conventional wisdom that a four-year college degree was essential. As Forbes magazine reported in 2012, 90% of shop classes have been eliminated for the Los Angeles unified school district's 660,000 students. Yet a 2012 Bureau of Labor Statistics study shows that 48% of all college graduates are working in jobs that don't require a four-year degree.
  • A good trade to consider: welding. I recently visited Pioneer Pipe in the Utica and Marcellus shale area of Ohio and learned that last year the company paid 60 of its welders more than $150,000 and two of its welders over $200,000. The owner, Dave Archer, said he has had to turn down orders because he can't find enough skilled welders.
  • According to the 2011 Skills Gap Survey by the Manufacturing Institute, about 600,000 manufacturing jobs are unfilled nationally because employers can't find qualified workers. To help produce a new generation of welders, pipe-fitters, electricians, carpenters, machinists and other skilled tradesmen, high schools should introduce students to the pleasure and pride they can take in making and building things in shop class. American employers are so yearning to motivate young people to work in manufacturing and the skilled trades that many are willing to pay to train and recruit future laborers.
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    The wisdom of offshoring manufacturing jobs and busting trade unions bites the U.S. in the bohunkus; a shortage of skilled tradesmen.  
Paul Merrell

European Lawmakers Demand Answers on Phone Key Theft - The Intercept - 0 views

  • European officials are demanding answers and investigations into a joint U.S. and U.K. hack of the world’s largest manufacturer of mobile SIM cards, following a report published by The Intercept Thursday. The report, based on leaked documents provided by NSA whistleblower Edward Snowden, revealed the U.S. spy agency and its British counterpart Government Communications Headquarters, GCHQ, hacked the Franco-Dutch digital security giant Gemalto in a sophisticated heist of encrypted cell-phone keys. The European Parliament’s chief negotiator on the European Union’s data protection law, Jan Philipp Albrecht, said the hack was “obviously based on some illegal activities.” “Member states like the U.K. are frankly not respecting the [law of the] Netherlands and partner states,” Albrecht told the Wall Street Journal. Sophie in ’t Veld, an EU parliamentarian with D66, the Netherlands’ largest opposition party, added, “Year after year we have heard about cowboy practices of secret services, but governments did nothing and kept quiet […] In fact, those very same governments push for ever-more surveillance capabilities, while it remains unclear how effective these practices are.”
  • “If the average IT whizzkid breaks into a company system, he’ll end up behind bars,” In ’t Veld added in a tweet Friday. The EU itself is barred from undertaking such investigations, leaving individual countries responsible for looking into cases that impact their national security matters. “We even get letters from the U.K. government saying we shouldn’t deal with these issues because it’s their own issue of national security,” Albrecht said. Still, lawmakers in the Netherlands are seeking investigations. Gerard Schouw, a Dutch member of parliament, also with the D66 party, has called on Ronald Plasterk, the Dutch minister of the interior, to answer questions before parliament. On Tuesday, the Dutch parliament will debate Schouw’s request. Additionally, European legal experts tell The Intercept, public prosecutors in EU member states that are both party to the Cybercrime Convention, which prohibits computer hacking, and home to Gemalto subsidiaries could pursue investigations into the breach of the company’s systems.
  • According to secret documents from 2010 and 2011, a joint NSA-GCHQ unit penetrated Gemalto’s internal networks and infiltrated the private communications of its employees in order to steal encryption keys, embedded on tiny SIM cards, which are used to protect the privacy of cellphone communications across the world. Gemalto produces some 2 billion SIM cards a year. The company’s clients include AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers. “[We] believe we have their entire network,” GCHQ boasted in a leaked slide, referring to the Gemalto heist.
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  • While Gemalto was indeed another casualty in Western governments’ sweeping effort to gather as much global intelligence advantage as possible, the leaked documents make clear that the company was specifically targeted. According to the materials published Thursday, GCHQ used a specific codename — DAPINO GAMMA — to refer to the operations against Gemalto. The spies also actively penetrated the email and social media accounts of Gemalto employees across the world in an effort to steal the company’s encryption keys. Evidence of the Gemalto breach rattled the digital security community. “Almost everyone in the world carries cell phones and this is an unprecedented mass attack on the privacy of citizens worldwide,” said Greg Nojeim, senior counsel at the Center for Democracy & Technology, a non-profit that advocates for digital privacy and free online expression. “While there is certainly value in targeted surveillance of cell phone communications, this coordinated subversion of the trusted technical security infrastructure of cell phones means the US and British governments now have easy access to our mobile communications.”
  • For Gemalto, evidence that their vaunted security systems and the privacy of customers had been compromised by the world’s top spy agencies made an immediate financial impact. The company’s shares took a dive on the Paris bourse Friday, falling $500 million. In the U.S., Gemalto’s shares fell as much 10 percent Friday morning. They had recovered somewhat — down 4 percent — by the close of trading on the Euronext stock exchange. Analysts at Dutch financial services company Rabobank speculated in a research note that Gemalto could be forced to recall “a large number” of SIM cards. The French daily L’Express noted today that Gemalto board member Alex Mandl was a founding trustee of the CIA-funded venture capital firm In-Q-Tel. Mandl resigned from In-Q-Tel’s board in 2002, when he was appointed CEO of Gemplus, which later merged with another company to become Gemalto. But the CIA connection still dogged Mandl, with the French press regularly insinuating that American spies could infiltrate the company. In 2003, a group of French lawmakers tried unsuccessfully to create a commission to investigate Gemplus’s ties to the CIA and its implications for the security of SIM cards. Mandl, an Austrian-American businessman who was once a top executive at AT&T, has denied that he had any relationship with the CIA beyond In-Q-Tel. In 2002, he said he did not even have a security clearance.
  • AT&T, T-Mobile and Verizon could not be reached for comment Friday. Sprint declined to comment. Vodafone, the world’s second largest telecom provider by subscribers and a customer of Gemalto, said in a statement, “[W]e have no further details of these allegations which are industrywide in nature and are not focused on any one mobile operator. We will support industry bodies and Gemalto in their investigations.” Deutsche Telekom AG, a German company, said it has changed encryption algorithms in its Gemalto SIM cards. “We currently have no knowledge that this additional protection mechanism has been compromised,” the company said in a statement. “However, we cannot rule out this completely.”
  • Update: Asked about the SIM card heist, White House press secretary Josh Earnest said he did not expect the news would hurt relations with the tech industry: “It’s hard for me to imagine that there are a lot of technology executives that are out there that are in a position of saying that they hope that people who wish harm to this country will be able to use their technology to do so. So, I do think in fact that there are opportunities for the private sector and the federal government to coordinate and to cooperate on these efforts, both to keep the country safe, but also to protect our civil liberties.”
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    Watch for massive class action product defect litigation to be filed against the phone companies.and mobile device manufacturers.  In most U.S. jurisdictions, proof that the vendors/manufacturers  knew of the product defect is not required, only proof of the defect. Also, this is a golden opportunity for anyone who wants to get out of a pricey cellphone contract, since providing a compromised cellphone is a material breach of warranty, whether explicit or implied..   
Paul Merrell

How the FBI Created a Terrorist - The Intercept - 0 views

  • Informant-led sting operations are central to the FBI’s counterterrorism program. Of 508 defendants prosecuted in federal terrorism-related cases in the decade after 9/11, 243 were involved with an FBI informant, while 158 were the targets of sting operations. Of those cases, an informant or FBI undercover operative led 49 defendants in their terrorism plots, similar to the way Osmakac was led in his. In these cases, the FBI says paid informants and undercover agents are foiling attacks before they occur. But the evidence suggests — and a recent Human Rights Watch report on the subject illustrates — that the FBI isn’t always nabbing would-be terrorists so much as setting up mentally ill or economically desperate people to commit crimes they could never have accomplished on their own.
  • At least in Osmakac’s case, FBI agents seem to agree with that criticism, though they never intended for that admission to become public. In the Osmakac sting, the undercover FBI agent went by the pseudonym “Amir Jones.” He’s the guy behind the camera in Osmakac’s martyrdom video. Amir, posing as a dealer who could provide weapons, wore a hidden recording device throughout the sting. The device picked up conversations, including, apparently, back at the FBI’s Tampa Field Office, a gated compound beneath the flight path of Tampa International Airport, among agents and employees who assumed their words were private and protected. These unintentional recordings offer an exclusive look inside an FBI counterterrorism sting, and suggest that, even in the eyes of the FBI agents involved, these sting targets aren’t always the threatening figures they are made out to be.
  • OW OSMAKAC CAME to the attention of law enforcement in the first place is still unclear. In a December 2012 Senate floor speech, Dianne Feinstein, chairwoman of the Senate Intelligence Committee, cited Osmakac’s case as one of nine that demonstrated the effectiveness of surveillance under the FISA Amendments Act. Senate legal counsel later walked back those comments, saying they were misconstrued. Osmakac is among terrorism defendants who were subjected to some sort of FISA surveillance, according to court records, but whether he was under individual surveillance or identified through bulk collection is unknown. Discovery material referenced in a defense motion included a surveillance log coversheet with the description, “CT-GLOBAL EXTREMIST INSPIRED.” If he first came onto the FBI’s radar as a result of eavesdropping, then it’s plausible that as part of the sting, the FBI manufactured another explanation for his targeting. This is a long-running, if controversial process known as “parallel construction,” which has also been used by the U.S. Drug Enforcement Administration when drug offenders are identified through bulk collection and then prosecuted for drug crimes. In court records, the FBI maintained that Osmakac came to agents’ attention through Dabus. The informant reached out to the FBI after meeting Osmakac, and soon offered him a job at Java Village.
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    A judge denied the defense access to FBI transcripts of conversations among agents on grounds that they would provide no assistance to the defense beyond what was available to the defense by discovery. He also entered a protective order barring their disclosure. The defendant was found guilty and sentenced to 40 years in prison.  But the FBI transcripts were leaked to The Intercept, apparently by someone inside the Dept. of Justice or the judicial system, since the defense never was provided with them. The transcripts along with evidence from the case and gathered through interviews provide a chilling look into the methods the FBI uses to manufacture "terrorists" for prosecution and conviction (in this case victimizing a young Muslim American with a severe mental illness), obviously only for propaganda and to justify its counter-terrorism budget. This is an area that needs Congressional attention. The courts' protections from entrapment are far too lax, particularly when members of a particular religion are being targeted for political reasons and anti-Muslim hysteria is sweeping the land. The government should not be permitted to manufacture criminals.
Paul Merrell

Ruble Plunge, Sanctions Are Pressuring Car Makers to Produce in Russia - Russia Insider - 0 views

  • The crisis in the Russian automotive market, the decline of the local currency and the decline in sales since the beginning of 2014 confirm the carmaker Renault-Nissan to address the issue of localization of production with even more vigor.As the Renault-Nissan CEO Carlos Ghosn announced in Davos at the 45th World Economic Forum, it is going ahead with forced localization and a withdrawal of the planning pace of new models in the high price sector. Ghosn in Davos told the Agency RIA Novosti: "All this together forces us to localize the production, and as soon as possible."
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    From the U.S. Neocon Department of This-Isn't-What_We_Wanted: With the decline in the ruble in the foreign exchange market and stiff trade sanctions on Russia, manufacturers are having to move manufacturing from Europe to Russia. 
Paul Merrell

Wall Street: The Trump-China missing link - RT Op-Edge - 0 views

  • The yuan is about to enter the IMF’s basket of reserve currencies this coming Saturday - alongside the US dollar, pound, euro and yen. This is no less than a geoeconomic earthquake. Not only does this represent yet another step in China’s irresistible path towards economic primacy; the Chinese currency’s inclusion in the Special Drawing Rights (SDR) basket will also lead central banks and hyper-wealthy funds – especially from the US – to increasingly buy more Chinese assets.At the first US presidential debate, Donald Trump took no prisoners, criticizing China’s currency manipulation. This is what he said:“You look at what China’s doing to our country in terms of making our product, they’re devaluing their currency and there’s nobody in our government to fight them… They’re using our country as a piggy bank to rebuild China, and many other countries are doing the same thing.”
  • Well, China is not “making our product”; the manufacturing process is Made in China – then exported to the US. Most of the profits benefit US corporations – everything from design, licensing and royalties to advertising, financing and retail margins. If the mantras manage to spell out a partial truth - the US has lost manufacturing jobs to China, China is the “factory of the world” – they don't spell out the hidden truth that those who profit are essentially major corporations.China does not “devalue their currency”; the People’s Bank of China periodically adjusts the yuan according to a very narrow band. The major practitioners of quantitative easing (QE) are actually the US, as well as Japan and the European Central Bank (ECB). And the currency of global consumer goods manufacturing continues to be the US dollar, not the yuan.
  • Beijing also is not “using our country as a piggy bank to rebuild China.” This is all about balance of payments. What US consumers spend on Made in China products – many of them delocalized by US corporations – is pumped back to the US as capital inflows that keep interest rates down and help to support the Empire of Chaos’s global hegemony.
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  • For all his incapacity to formulate thoughts above the language skills of a third grader, Trump has been piling up astonishing proposals that resonate wildly, way beyond the “basket of deplorables” spectrum.
  • The bottom line is that to recover US manufacturing jobs – as Trump has been forcefully promising – he will have to stare down the whole Wall Street finance oligarchy.So no wonder these oligarchs – responsible for shipping all those US manufacturing jobs to Asia and lavishly profiting from bailouts to the 'Too Big To Fail' racket – hate him with all their golden-plated guts.
  • Trump’s attention span is notoriously minimalist. If his advisers managed to imprint – tweet? - a few one-liners on his brain, he would be able to explain to US public opinion how the US-China game is really played, something that all relevant parties in both nations know by heart.And the – crucial - missing link in the whole game is Wall Street.This is how it works.
  • He is against Cold War 2.0 and the pivot to Asia, when he says “wouldn’t it be nice to get along with Russia and China for a change?”He no less than pre-empted WWIII when he said he would be against a US nuclear first-strike.He totally abhors global “free trade” – from NAFTA to TPP and TTIP - because it has “hollowed out the lives of American workers”, as US corporations (under Wall Street’s “incentive”) delocalize and then import back into the US tariff-free.
  • Trump was even open to nationalizing Wall Street banks after the 2008 financial crisis.
  • So we’re faced with the ultimate surrealist spectacle of a billionaire denouncing corporate globalization, which has been responsible for stripping the US lower middle classes of countless, decent blue-collar jobs and social benefits – not to mention turning them into hostages of rotting public infrastructure. And all that with absolutely no one among the US establishment condemning the most astonishing wealth transfer to the 0.0001% in history.If in the next two presidential debates Trump points to the crucial missing link in the whole plot – Wall Street - he might as well lock on as a surefire winner.
Paul Merrell

Rail Recession: Carloads Tumble To Thee-Year Lows Amid Manufacturing Implosio... - 1 views

  • As manufacturing plummets to the weakest levels since September 2009 and new export orders collapse, the US railroad industry has jus seen carload volumes tumble to three-year lows, according to a weekly report from the Association of American Railroads (AAR), first reported by Bloomberg on Monday.  AAR's report showed a decline in carloads for 3Q19, down 5.5%, and one of the most significant drops in three years, indicating that the US economy continues to decelerate into year-end. Most of the shipment declines were seen in autos, coal, grain, chemicals, and consumer goods, but there was a small improvement in crude oil shipments.
  • Bloomberg blames the trade war between the US and China for the rail recession.
Paul Merrell

U.S. manufacturing industry is in a recession now - Los Angeles Times - 1 views

  • During President Trump’s first two years in office, his standing with many voters was buoyed by a surge in manufacturing that helped create millions of new jobs and undergirded the whole U.S. economy.But today, manufacturing has plunged into recession and is threatening to pull down other sectors, perhaps hitting hardest on supporters in those states that helped put Trump in office.Impeachment may be dominating the news, but the less-noticed industrial slump ultimately could pose a greater threat to Trump’s reelection.
Gary Edwards

75 Economic Numbers From 2012 That Are Almost Too Crazy To Believe - 0 views

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    Thanks to Marbux we have this extraordinary collection of facts and figures describing the economic catastrophe that has hit the USA.  excerpt: "What a year 2012 has been!  The mainstream media continues to tell us what a "great job" the Obama administration and the Federal Reserve are doing of managing the economy, but meanwhile things just continue to get even worse for the poor and the middle class.  It is imperative that we educate the American people about the true condition of our economy and about why all of this is happening.  If nothing is done, our debt problems will continue to get worse, millions of jobs will continue to leave the country, small businesses will continue to be suffocated, the middle class will continue to collapse, and poverty in the United States will continue to explode.  Just "tweaking" things slightly is not going to fix our economy.  We need a fundamental change in direction.  Right now we are living in a bubble of debt-fueled false prosperity that allows us to continue to consume far more wealth than we produce, but when that bubble bursts we are going to experience the most painful economic "adjustment" that America has ever gone through.  We need to be able to explain to our fellow Americans what is coming, why it is coming and what needs to be done.  Hopefully the crazy economic numbers that I have included in this article will be shocking enough to wake some people up. The end of the year is a time when people tend to gather with family and friends more than they do during the rest of the year.  Hopefully many of you will use the list below as a tool to help start some conversations about the coming economic collapse with your loved ones.  Sadly, most Americans still tend to doubt that we are heading into economic oblivion.  So if you have someone among your family and friends that believes that everything is going to be "just fine", just show them these numbers.  They are a good summary of the problems that the U
Gary Edwards

Columbine Survivor Pens Bold Open Letter to Obama Rejecting Gun Control: 'Whose Side Ar... - 0 views

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    Amazing letter from Columbine survivor, Evan Todd, to Obama, explaining why Obama's gun control proposals are non sense. Evan Todd's open letter to Obama, below. - Mr. President, As a student who was shot and wounded during the Columbine massacre, I have a few thoughts on the current gun debate. In regards to your gun control initiatives: Universal Background Checks First, a universal background check will have many devastating effects. It will arguably have the opposite impact of what you propose. If adopted, criminals will know that they can not pass a background check legally, so they will resort to other avenues. With the conditions being set by this initiative, it will create a large black market for weapons and will support more criminal activity and funnel additional money into the hands of thugs, criminals, and people who will do harm to American citizens. Second, universal background checks will create a huge bureaucracy that will cost an enormous amount of tax payers dollars and will straddle us with more debt. We cannot afford it now, let alone create another function of government that will have a huge monthly bill attached to it. Third, is a universal background check system possible without universal gun registration? If so, please define it for us. Universal registration can easily be used for universal confiscation. I am not at all implying that you, sir, would try such a measure, but we do need to think about our actions through the lens of time. It is not impossible to think that a tyrant, to the likes of Mao, Castro, Che, Hitler, Stalin, Mussolini, and others, could possibly rise to power in America. It could be five, ten, twenty, or one hundred years from now - but future generations have the natural right to protect themselves from tyrannical government just as much as we currently do. It is safe to assume that this liberty that our forefathers secured has been a thorn in the side of would-be tyrants ever since the Second Amendmen
Gary Edwards

Startup turns carbon dioxide into fuels - 0 views

  • The research has received funding from the Air Force Office of Scientific Research (AFSOR), the National Science Foundation and the Department of Energy (DOE). The collaboration between Liquid Light and the University was supported by the DOE Small Business Innovation Research program and the AFOSR Small Business Technology Transfer program. Princeton's agreement with Liquid Light allowed the company to continue to collaborate with Bocarsly and his research team. Before long, new discoveries were emerging. "They started noticing interesting chemistry that we wouldn't have predicted," said Bocarsly.
  • The Princeton scientists did some additional studies, and made a surprising discovery: They could turn CO2, which contains only one carbon, into a compound with a carbon-carbon bond, which vastly increases the possibilities for creating commercial applications. This was radical because although the reaction is certainly possible, it is highly unlikely to happen because so many other competing reactions are occurring. "Everyone who electrochemically reduces CO2 today makes compounds with only one carbon," said Bocarsly. "Nobody makes things with carbon-carbon bonds." He paused. "But we can." "That was a very 'wow' moment," recalled Cole, "because we thought that our process could only make methanol. But now we were finding that we could make a variety of products, and that is what makes this technology commercially interesting." She said Liquid Light scientists can now make more than 20 different products from CO2.
  • One of the chemicals Liquid Light can make is isopropanol, commonly known as rubbing alcohol and an important industrial chemical. Another is butanol, which could be commercially important as a fuel. Liquid Light's technology offers the potential to make these chemicals at lower cost than today's methods, which involve starting with fossil fuels such as petroleum and natural gas.
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  • Why does pyridinium work so well as a catalyst for the reaction? Based on its structure, the ring-shaped molecule is an unlikely catalyst for this reaction because it shuttles just one electron at a time. But to convert CO2 to methanol requires six electrons, and to make higher-carbon molecules takes even more electrons. Bocarsly and his team — in collaboration with Steven Bernasek, professor of chemistry — are doing studies to understand the steps in the chemical reaction, and they are making rapid progress. "There are clearly some intermediate products formed during the reaction that do not sit around for a long time and are not there in very high concentrations," said Bocarsly.
  • The Princeton team also is studying the factors that determine which products can be made from CO2. The researchers have found that very subtle changes in the electrode surface can lead to production of different chemicals. For example, CO2 plus a pyridinium catalyst and a platinum electrode make methanol. However, the same catalyst and a different electrode give a different product. The team published its findings on how the reaction is affected by catalyst concentration, temperature and pressure in the journal ChemSusChem last year.
  • Citing government statistics that the United States generates about 5.5 billion metric tons of CO2 per year, Teamey said it will not be hard to obtain the starting materials for this new industry. However, the CO2 needs to be relatively pure, a requirement that rules out gasoline tailpipes and coal-fired power plants. Instead, said Teamey, the CO2 could come from manufacturing facilities, such as fertilizer manufacturers and cement plants, which according to Teamey emit some 100 million tons of high-purity CO2 each year.
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    "Today, carbon dioxide (CO2) is a hot topic. Scientists around the globe are searching for ways to store, dispose of, or prevent the formation of the greenhouse gas, which is a major driver of global climate change. Liquid Light hopes to take this concept one step further and harness waste CO2 as a source of carbon to make industrial chemicals and fuels. The technology behind the process is simple: Take CO2 and mix it in a water-filled chamber with an electrode and a catalyst. The ensuing chemical reaction converts CO2 into a new molecule, methanol, which can be used as a fuel, an industrial solvent or a starting material for the manufacture of other chemicals. Liquid Light's founders include Bocarsly and his former graduate student Emily Cole, who earned her Ph.D. from Princeton in 2009. Cole helped revive efforts in Bocarsly's lab to study the conversion of CO2 into usable fuels, which led to the launch of Liquid Light and an ongoing collaboration that Bocarsly said has been extremely positive for his research team at the University. "We've made some discoveries that wouldn't have been made in a university setting, and this has really accelerated the research," Bocarsly said. "It is a very productive relationship." Back in the 1990s, a former Ph.D. student of Bocarsly's named Chao Lin conducted some of the earliest experiments on turning CO2 into methanol. He used palladium metal as the electrode and pyridinium, an inexpensive ring-shaped molecule, as the catalyst. By plugging the electrode into an electrical outlet, he could drive an electrochemical reaction that converted CO2 into methanol. As Bocarsly recalled, Lin was quite excited about his success. However, said Bocarsly, "We published that finding in 1994 and there was approximately zero interest in it." The work languished until 2005 when Cole, then a new graduate student, told Bocarsly she wanted to work on a clean-energy project. She took up the challenge of reproducing Lin's results, but this time
Paul Merrell

FBI Celebrates Duping Another Mentally Ill Man Into Fake Terror Plot - 0 views

  • Following a series of similar widely ridiculed so-called “sting” operations, the Federal Bureau of Investigation announced last week that it had foiled yet another “terror plot” that, like virtually every supposed “terrorist” case in recent years, was created and managed from start to finish by the FBI itself. This time, the dupe was a 28-year-old California man, Matthew Aaron Llaneza, with a documented history of mental illness, who apparently believed his government handlers were helping him wage “jihad.” Critics, however, say the whole scheme smacks of entrapment and a waste of taxpayer money. Llaneza was arrested by federal agents on February 7 in Oakland after he supposedly tried to blow up a bogus bomb the FBI helped him create. According to authorities, the mentally ill San Jose suspect planned to detonate the fake explosives outside a Bank of America branch. The alleged plan, officials said, was to start a “civil war” by making it appear as if the attack had been carried out by “anti-government militias,” sparking a crackdown by the government on right-of-center dissidents.       “Unbeknownst to Llaneza, the explosive device that he allegedly attempted to use had been rendered inoperable by law enforcement and posed no threat to the public,” the FBI admitted in a press release celebrating the arrest of its mentally unstable stooge. The man was charged in a criminal complaint with “attempted use of a weapon of mass destruction against property used in an activity that affects interstate or foreign commerce.” If convicted, he could face life in prison.
  • According to the government’s court filings, the mentally ill man met with an undercover FBI agent late last year under mysterious circumstances. The federal official somehow managed to convince the naïve dupe that he was connected to the “Taliban and the mujahidin in Afghanistan” — Islamist forces that were originally armed and trained by the U.S. government before becoming official enemies. From there, federal handlers worked with the man to develop the half-baked plot and the fake bomb to blow something up.  
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    The trend continues. Still no Terrorist™ criminal charges brought against anyone by the FBI other than alleged 9/11 participants that the FBI did not incite to commit an act of Terrorism™; i.e., no real Terrorist™ threat resulting in criminal charges. Hard to justify continuation of all that funding the FBI gets for chasing domestic Terrorists™ if there aren't any, so the FBI continues to manufacture them in sting operations. Not to mention that the whole War on Terror™ government propaganda campaign would fall apart and the TSA would have to stop forcing air passengers to choose between being groped or viewed naked in those nifty body scanners. Heaven forbid that we might begin restoring civil rights and spending those trillions of dollars on the War on Terror™. No! No! We must maintain Cold War military spending as a percentage of GDP or we'd be flooded with unemployed military veterans and former government contractor workers. We only start wars to defend the U.S., not to enrich military contractors, seize natural resources from those that own or control them, enable the banksters to siphon more from a bigger bucket, or  expand the Globalist Empire. We are America! We are the good guys. Our motives for waging the War on Terror™ are entirely altruistic. Ditto for our professional politicians.   Not.     
Paul Merrell

Obama Pins Fate of Nuclear Pact on Documents From an Iranian "Curveball" - 0 views

  • Obama administration officials insist "possible military dimensions" of Iran’s nuclear program must be resolved to the satisfaction of the IAEA to complete a nuclear agreement. But the term refers to discredited intelligence from suspect sources. One of the issues Obama administration officials are insisting must be resolved to the satisfaction of the International Atomic Energy Agency (IAEA) before any nuclear agreement may be concluded involves "possible military dimensions." That term refers to documents long discredited by German intelligence but which the United States and the IAEA have maintained came from a covert Iranian nuclear weapons program. A former senior German official has now revealed that the biggest collection of documents cited as evidence of such a covert Iran program actually came from a member of the Iranian terrorist organization Mujihedin-E-Khalq (MEK) and that German intelligence sought to warn the George W. Bush administration that the source of the documents was not trustworthy.
  • The use of those documents to make a case for action against Iran closely parallels the Bush administration's use of the testimony of the now-discredited Iraqi exile called "Curveball" to convince the US public to support war against Iraq. The parallel between the two episodes was recognized explicitly by the German intelligence service, the Bundesnachrichtendienst (BND), according to Karsten Voigt, who was the German Foreign Office's coordinator of North American-German relations. Voigt provided details of the story behind the appearance of the mysterious Iran nuclear documents in an interview with this writer last March for a book on the false narrative surrounding Iran's nuclear program that is newly published, Manufactured Crisis. 
  • In 2004, Powell and his State Department team still regarded the MEK as a disreputable terrorist organization, but the neoconservatives in the administration viewed it as useful as an anti-regime tool. The MEK was known to have served the interests of Israel's Mossad by providing a way to "launder" intelligence claims that Israel wanted to get out to the public but didn't want identified as having come from Israel. In the best-known case, the group's political front organization, the National Council of Resistance in Iran, had revealed the location of the Iranian uranium enrichment facility at Natanz in an August 2002 press conference, but it had been given the coordinates of the construction site by Israeli intelligence, according to both a senior IAEA official and an Iranian opposition group source, cited by Seymour Hersh and New Yorker writer Connie Bruck, respectively. The purported Iranian documents conveyed by the MEK to Western intelligence also displayed multiple indications of having been fabricated by an outside actor. The clearest and most significant anomaly was that the drawings of efforts to redesign the Shahab-3 missile to accommodate a nuclear weapons showed a missile that had already been abandoned by Iran's Defense Ministry by the time the drawings were said to have been made, as was confirmed by former IAEA deputy director general for safeguards, Olli Heinonen, in an interview with this writer. The Iranian abandonment of the earlier missile design became known to foreign analysts, however, only after Iran flight-tested a completely new missile design in August 2004 - after the "laptop documents" had already been conveyed to the BND by its MEK source. Whoever ordered those drawings was unaware of the switch to the new missile design, which would rule out a genuine Iranian Defense Ministry or military program.
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  • A former IAEA official familiar with those documents recalled in interview with Truthout that senior officials at the IAEA were immediately suspicious of the entire collection of documents given to the agency in 2005. "The documents were never really convincing," said the former official. The creators of the documents had taken publicly available information about people, organizations and location and had "woven their own narrative" around them, he said. Furthermore, he recalled finding anomalies in the stamps and signature blocs of documents. The fabricated documents, depicting Iran as redesigning their missile reentry vehicle to accommodate a nuclear weapon, among other things, fit into a Bush administration strategy - coordinated with Israel - that was aimed at justifying a military confrontation with Iran. The working assumption, as was revealed by David Wurmser, special assistant to Bolton and then to Cheney, in October 2007, was that the United States would probably need to use force to bring about that change once Iraq was brought under control. Bolton recalls in his memoirs that his aim was to move the Iran nuclear issue out of the IAEA to the United Nations Security Council, where the Bush administration would call for international action against Iran, and failing that, take unilateral action.
  • The IAEA got more documents and intelligence directly from Israel in 2008 and 2009 claiming Iranian work on nuclear weapons, according to then-IAEA Director-General Mohamed ElBaradei. The intelligence passed on by Israel included the claim that Iran had installed a large metal cylinder for high explosives tests at its Parchin military facility in 2000, which it intended to use for hydrodynamic tests of nuclear weapons designs. But the IAEA never revealed the information had come from Israel, covering up the primary fact relevant to its reliability and authenticity. The Safeguards Department had been prepared as early as 2009 to publish a dossier on what it called the "possible military dimensions" of the Iranian nuclear program that would accept all the intelligence reports and documents provided by Israel as genuine and accurate. But ElBaradei's successor, Yukiya Amano, waited to do so until November 2011, when the Obama administration was ready to organize an international coalition for harsh sanctions against Iran's oil export sector. The Obama administration returned to the "possible military dimensions" last November, insisting on a provision in the interim Iran nuclear agreement that required Iran to "resolve" all the "concerns" about that issue. A "senior administration official" briefing the press on the agreement November 24 said there would be no final agreement unless Iran showed that it had "come into compliance with its obligations under the NPT and its obligations to the IAEA."
  • In response to a request from Truthout for a confirmation or denial of the revelation by Karsten Voigt of the MEK role in transmitting the purported Iranian documents to the BND in 2004, NSC officials declined to comment on the matter, according to NSC spokesperson Bernadette Meehan. Some observers believe US negotiators hope to get Iran to admit to having had a nuclear weapons program. However, Iran is certainly not going to admit that the documents and intelligence reports it knows to be fabrications are true. But the Obama administration may well believe so strongly in the Iran nuclear narrative it inherited from the Bush administration and in the idea that the sanctions against Iran confer ultimate negotiating leverage on the United States that it sees an Iranian confession as a realistic goal. In any case, the decision to introduce the falsified evidence of the past into the final negotiations is bound to bring them to an impasse unless the United States is prepared to back down.
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    Neocons in the Obama administration are at it again, fueling the Iranian nukes myth with fabricated intelligence on behalf of Israel. 
Paul Merrell

Snowden defeats Boeing in Brazilian jet fighter soap opera - RT Op-Edge - 0 views

  • The climatic end of a decade-long intercontinental aerial soap opera seems to have yielded two clear winners: Sweden and Snowden. In a deal regarding 36 jet fighters worth $4.5 billion, Brazilian Defense Minister Celso Amorim announced the Gripen NG, manufactured by Saab, won over the French Rafale, manufactured by Dassault, and the American F/A-18 Super Hornet, manufactured by Boeing.
Paul Merrell

Catalog Reveals NSA Has Back Doors for Numerous Devices - SPIEGEL ONLINE - 0 views

  • When it comes to modern firewalls for corporate computer networks, the world's second largest network equipment manufacturer doesn't skimp on praising its own work. According to Juniper Networks' online PR copy, the company's products are "ideal" for protecting large companies and computing centers from unwanted access from outside. They claim the performance of the company's special computers is "unmatched" and their firewalls are the "best-in-class." Despite these assurances, though, there is one attacker none of these products can fend off -- the United States' National Security Agency.
  • Specialists at the intelligence organization succeeded years ago in penetrating the company's digital firewalls. A document viewed by SPIEGEL resembling a product catalog reveals that an NSA division called ANT has burrowed its way into nearly all the security architecture made by the major players in the industry -- including American global market leader Cisco and its Chinese competitor Huawei, but also producers of mass-market goods, such as US computer-maker Dell.
  • The specialists at ANT, which presumably stands for Advanced or Access Network Technology, could be described as master carpenters for the NSA's department for Tailored Access Operations (TAO). In cases where TAO's usual hacking and data-skimming methods don't suffice, ANT workers step in with their special tools, penetrating networking equipment, monitoring mobile phones and computers and diverting or even modifying data. Such "implants," as they are referred to in NSA parlance, have played a considerable role in the intelligence agency's ability to establish a global covert network that operates alongside the Internet. Some of the equipment available is quite inexpensive. A rigged monitor cable that allows "TAO personnel to see what is displayed on the targeted monitor," for example, is available for just $30. But an "active GSM base station" -- a tool that makes it possible to mimic a mobile phone tower and thus monitor cell phones -- costs a full $40,000. Computer bugging devices disguised as normal USB plugs, capable of sending and receiving data via radio undetected, are available in packs of 50 for over $1 million.
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  • These NSA agents, who specialize in secret back doors, are able to keep an eye on all levels of our digital lives -- from computing centers to individual computers, and from laptops to mobile phones. For nearly every lock, ANT seems to have a key in its toolbox. And no matter what walls companies erect, the NSA's specialists seem already to have gotten past them. This, at least, is the impression gained from flipping through the 50-page document. The list reads like a mail-order catalog, one from which other NSA employees can order technologies from the ANT division for tapping their targets' data. The catalog even lists the prices for these electronic break-in tools, with costs ranging from free to $250,000. In the case of Juniper, the name of this particular digital lock pick is "FEEDTROUGH." This malware burrows into Juniper firewalls and makes it possible to smuggle other NSA programs into mainframe computers. Thanks to FEEDTROUGH, these implants can, by design, even survive "across reboots and software upgrades." In this way, US government spies can secure themselves a permanent presence in computer networks. The catalog states that FEEDTROUGH "has been deployed on many target platforms."
  • The ANT division doesn't just manufacture surveillance hardware. It also develops software for special tasks. The ANT developers have a clear preference for planting their malicious code in so-called BIOS, software located on a computer's motherboard that is the first thing to load when a computer is turned on. This has a number of valuable advantages: an infected PC or server appears to be functioning normally, so the infection remains invisible to virus protection and other security programs. And even if the hard drive of an infected computer has been completely erased and a new operating system is installed, the ANT malware can continue to function and ensures that new spyware can once again be loaded onto what is presumed to be a clean computer. The ANT developers call this "Persistence" and believe this approach has provided them with the possibility of permanent access. Another program attacks the firmware in hard drives manufactured by Western Digital, Seagate, Maxtor and Samsung, all of which, with the exception of the latter, are American companies. Here, too, it appears the US intelligence agency is compromising the technology and products of American companies.
  • Other ANT programs target Internet routers meant for professional use or hardware firewalls intended to protect company networks from online attacks. Many digital attack weapons are "remotely installable" -- in other words, over the Internet. Others require a direct attack on an end-user device -- an "interdiction," as it is known in NSA jargon -- in order to install malware or bugging equipment. There is no information in the documents seen by SPIEGEL to suggest that the companies whose products are mentioned in the catalog provided any support to the NSA or even had any knowledge of the intelligence solutions. "Cisco does not work with any government to modify our equipment, nor to implement any so-called security 'back doors' in our products," the company said in a statement. Contacted by SPIEGEL reporters, officials at Western Digital, Juniper Networks and Huawei also said they had no knowledge of any such modifications. Meanwhile, Dell officials said the company "respects and complies with the laws of all countries in which it operates." Many of the items in the software solutions catalog date from 2008, and some of the target server systems that are listed are no longer on the market today. At the same time, it's not as if the hackers within the ANT division have been sleeping on the job. They have continued to develop their arsenal. Some pages in the 2008 catalog, for example, list new systems for which no tools yet exist. However, the authors promise they are already hard at work developing new tools and that they will be "pursued for a future release."
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    Oh, great. My router and all of my hard drives have NSA backdoors in them. And my BIOS on the Linux box may be infected with a backdoor. What are the odds that NSA has not developed similar capability for the UEFI on our two newer Windows boxes? 
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