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Paul Merrell

Central Bankers Admit that Central Banks Have Failed to Fix the Economy | Global Resear... - 0 views

  • Between 2008 and 2015, central banks pretended that they had fixed the economy. In 2016, they’re starting to admit that they haven’t fixed much of anything.
Paul Merrell

Mastermind of The Bamako Terror Attack Mokhtar Belmokhtar: A CIA Sponsored "Intelligenc... - 0 views

  • In response to the tragic Paris events of November 13, Central Intelligence Agency director  John Brennan  warned that “ISIL is planning additional attacks… It is clear to me that ISIL has an external agenda, that they are determined to carry out these types of attacks.” (Quoted in Daily Telegraph, November 16, 2015) Five days later following the CIA Chief’s  premonition, the Bamako Radisson Hotel Blu in Mali’s capital was the object of a terrorist attack, resulting in  21 people dead. Following the attack and the taking of hostages by the terrorists, French and Malian special forces raided the hotel. US. Africa Command (AFRICOM) also confirmed that US special forces were involved.
  • The Bamako terror operation was allegedly coordinated by Mokhtar Belmokhtar (aka Khaled Abu al-Abbas), leader of an affiliate of Al Qaeda in the Islamic Maghreb (AQIM), the Islamist al-Mulathameen (Masked) Brigade, or “Those who Sign with Blood.” Belmokhtar’s group was created in 2012 in the wake of the war on Libya. His organization has also allegedly been involved in the drug trade, smuggling as well kidnapping operations of foreigners in North Africa.  While his whereabouts are said to be known, French intelligence has dubbed Belmokhtar “the uncatchable”. In June he was reported dead  as a result in a U.S. air strike in Libya. His death was subsequently denied. Based on shaky evidence, The New York Times report below (November 20) concludes that Belmokhtar’s group (together with AQIM) is unequivocally behind the Bamako attacks:
  • A member of Al Qaeda in Africa confirmed Saturday that the attack Friday on a hotel in Bamako, Mali, had been carried out by a jihadist group loyal to Mokhtar Belmokhtar, an Algerian operative for Al Qaeda. The Qaeda member, who spoke via an online chat, said that an audio message and a similar written statement in which the group claimed responsibility for the attack were authentic. The SITE Intelligence Group, which monitors jihadist groups, also confirmed the authenticity of the statement. The Qaeda member, who refused to be named for his protection, said that Mr. Belmokhtar’s men had collaborated with the Saharan Emirate of Al Qaeda in the Islamic Maghreb, … In the audio recording, the group, known as Al Mourabitoun, says it carried out the operation in conjunction with Al Qaeda’s branch in the Islamic Maghreb. The recording was released to the Al Jazeera network and simultaneously to Al Akhbar, … The recording states: “We, in the group of the Mourabitoun [Arabic Rebel Group], in cooperation with our brothers in Al Qaeda in Islamic Maghreb, the great desert area, claim responsibility for the hostage-taking operation in the Radisson hotel in Bamako.” (emphasis added)
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  • In turn, the French Minister of Defense acknowledged –prior to the conduct of a police investigation– that the authors of the attack were “most likely” led by Mokhtar Belmokhtar’s group in association with Al Qaeda in the Islamic Maghreb (AQIM). What Defense Minister Jean-Yves Le Drain failed to mention was that both Belmokhtar and AQIM have longstanding links to the CIA, which in turn has a working relationship with France’s  General Directorate for External Security, Direction générale de la sécurité extérieure (DGSE).  Casually ignored by the Western media, the leaders of Al Qaeda in the Islamic Maghreb (AQIM) including Belmokhtar were trained and recruited by the CIA in Afghanistan. Acknowledged by the Washington based Council on Foreign Relations (CFR): Most of AQIM’s major leaders are believed to have trained in Afghanistan during the 1979-1989 war against the Soviets as part of a group of North African volunteers known as “Afghan Arabs” that returned to the region and radicalized Islamist movements in the years that followed. The group is divided into “katibas” or brigades, which are clustered into different and often independent cells. The group’s top leader, or emir, since 2004 has been  Abdelmalek Droukdel, also known as Abou Mossab Abdelwadoud, a trained engineer and explosives expert who has fought in Afghanistan and has roots with the GIA in Algeria. (Council on Foreign Relations, Al Qaeda in the Islamic Maghreb, cfr.org, undated)
  • Mokhtar Belmokhtar: Post Cold War CIA intelligence asset?  The Council on Foreign Relations erroneously describes “Mokhtar Belmokhtar as the one-eyed veteran of the anti-Soviet Afghan insurgency.” (CFR, op cit, emphasis added). Belmokhtar (born in 1972) did not fight in the Soviet-Afghan war (1979-1989). He was recruited in 1991 at the age of 19 in the immediate wake of the Cold War. CIA recruitment continued in the wake of the Cold War. It was in large part directed against the Russian Federation and the former Soviet Republics as well as the Middle East. The purpose of this later CIA recruitment was to establish a network of “intelligence assets” to be used in the CIA’s post-cold war insurgencies. Leaders of the Chechen Islamist insurgencies were also trained in CIA camps in Afghanistan and Pakistan, including the notorious leader of the Chechen insurrection Ibn al-Khattab (a citizen of Saudi Arabia).
  • Following his training and recruitment and a two year stint in Afghanistan (1991-1993), Mokhtar Belmokhtar was sent back to Algeria in 1993 at age 21 where he joined the  Salafist Group for Preaching and Combat (GSPC) (emblem left). The latter was initially part of the so-called Armed Islamic Group  (Groupe islamique armé (GIA)) in Algeria which sought to overthrow the secular Algerian Government with a view to installing a theocratic Islamic State. Supported covertly by the CIA, Belmokhtar fought in Southern Algeria in the civil war opposing Islamist forces and the secular government. He was also  instrumental in the integration and merging of “jihadist” forces. In January 2007,  the Armed islamic Group (GIA) which had been prominent in the 1990s, officially changed its name to the Al-Qaeda Organization in the Islamic Maghreb (AQIM). In turn, as of 2007, the newly formed AQIM established a close relationship with the Libya Islamic Fighting Group (LIFG), which was directly supported by NATO during the 2011 war on Libya, “providing weapons, training, special forces and even aircraft to support them in the overthrow of Libya’s government.” (Tony Cartalucci, The Geopolitical Reordering of Africa: US Covert Support to Al Qaeda in Northern Mali, France “Comes to the Rescue”, Global Research, January 2013). British SAS Special Forces had also been brought into Libya prior to the onset of the insurrection, acting as military advisers to the LIFG. In fact, what has unfolded since the war on Libya is the merging of LIFG and AQIM forces. In turn, many of the LIFG operatives have been dispatched to Syria to fight within the ranks of Al Nusrah and the ISIS.
  • It is worth noting that the 2007  restructuring  of jihadist forces in Algeria and the Maghreb coincided with  the appointment of Robert Stephen Ford as US ambassador to Algeria in August 2006. Ford had been reassigned by the State Department from Baghdad to Algiers. From 2004 to 2006, he worked closely with Ambassador John Negroponte at the US embassy in Baghdad in supporting the creation of  both Shia and Sunni death squads in Iraq. This project consisted in recruiting and training terrorists modelled on the so-called “Salvador Option” which had been applied by the CIA in Central America. Negroponte as we recall played a central role in supporting the Contras terrorists in Nicaragua as ambassador to Honduras from 1981-1985. For further details see Michel Chossudovsky, “The Salvador Option For Syria”: US-NATO Sponsored Death Squads Integrate “Opposition Forces”, Global Research,  May 28, 2012) The 2006 appointment of Robert Stephen Ford to head the US Embassy in Algeria was timely. It coincided with the consolidation of jihadist groups within Algeria and the Maghreb. It preceded the 2011 US-NATO sponsored insurrections in Libya and Syria. In 2010, Ford was approved by the US Congress as US Ambassador to Syria. He presented his credentials to president Bashar al Assad in January 2011, barely two months prior to the onslaught of the terrorist insurrection in the border city of Daraa in mid-March 2011. Ford played a central role in assisting the channelling of US and allied support to Syrian “opposition” groups including Al Nusrah and the ISIS.
  • Belmokhtar’s history and involvement in Afghanistan confirms that from the very outset he was an instrument of US intelligence. While, he operates with a certain degree of independence and autonomy in relation to his intelligence sponsors, he and his organization are bona fide CIA “intelligence assets”, which can be used by the CIA as part of a covert agenda. There are various definitions of  an “intelligence asset”. From the standpoint of US intelligence, “assets” linked up to terrorist organizations must not be aware that they are supported and monitored by Western intelligence. With regard to Al Qaeda, from the outset in 1979, the CIA chose to operate through various front organizations as well as indirectly through its Saudi, Qatari and Pakistani intelligence partners. CIA’s Milton Beardman who played a central role in the Soviet Afghan war confirms that members of Al Qaeda including Osama bin Laden were not aware of the role they were playing on behalf of Washington. In the words of bin Laden (quoted by Beardman): “neither I, nor my brothers saw evidence of American help”(Michel Chossudovsky, Who is Osama bin Laden, Global Research, September 12, 2001): Motivated by nationalism and religious fervor, the Islamic warriors were unaware that they were fighting the Soviet Army on behalf of Uncle Sam. While there were contacts at the upper levels of the intelligence hierarchy, Islamic rebel leaders in theatre had no contacts with Washington or the CIA.  (Ibid) Amply documented, Al Qaeda in the Islamic Maghreb (AQIM)and its affiliated groups including the Libya Islamic Fighting Group (LIFG) was serving the interests of the Western military alliance. Confirmed by the Washington Post, June 29, 2011 (See below), France was supplying weapons to the LIFG at the height of NATO’s bombing raids.
  • AQIM in turn was receiving weapons from the LIFG, which was supported by NATO. Moreover, LIFG mercenaries had integrated AQIM brigades. According to alleged Terror Mastermind Mokhtar Belmokhtar, who also coordinated the 2013 In Amenas Mali kidnapping operation: “We have been one of the main beneficiaries of the revolutions in the Arab world. As for our benefiting from the (Libyan) weapons, this is a natural thing in these kinds of circumstances.” http://www.hanford.gov/c.cfm/oci/ci_terrorist.cfm?dossier=174 Al Qaeda in the Islamic Maghreb (AQIM) is indelibly tied into a Western intelligence agenda. While it is described  as  ”one of the region’s wealthiest, best-armed militant groups”, financed covertly by Saudi Arabia and Qatar. France’s  Canard enchaîné revealed (June 2012) that Qatar (a staunch ally of the United States) has been funding various terrorist entities in Mali: The original report cites a French military intelligence report as indicating that Qatar has provided financial support to all three of the main armed groups in northern Mali: Iyad Ag Ghali’s Ansar Ed-Dine, al-Qa’ida in the Islamic Maghreb (AQIM) and the Movement for Unity and Jihad in West Africa (MUJWA). The amount of funding given to each of the groups is not mentioned but it mentions that repeated reports from the French DGSE to the Defense Ministry have mentioned Qatar’s support for ‘terrorism’ in northern Mali. (quoted by Jeune Afrique June 2012)
  • Qatar is a proxy state, a de facto Persian Gulf territory largely controlled by Washington. It hosts  a number of Western military and intelligence facilities. The Emir of Qatar does not finance terrorism without the consent of the CIA. And with regard to Mali, the CIA coordinates its activities in liaison with its French intelligence partners and counterparts, including la Direction du renseignement militaire (DRM) and the Direction générale de la sécurité extérieure (DGSE). The implications are obvious and should be carefully understood by Western public opinion. Inasmuch as Belmokhtar and AQIM are “intelligence assets”, both US and French intelligence are (indirectly) behind the Bamako attacks. Both US and French intelligence are complicit in the State sponsorship of terrorism.
Paul Merrell

U.S. First Shields Its Torturers and War Criminals From Prosecution, Now Officially Hon... - 0 views

  • As vice president, Dick Cheney was a prime architect of the worldwide torture regime implemented by the U.S. government (which extended far beyond waterboarding), as well as the invasion and destruction of Iraq, which caused the deaths of at least 500,000 people and more likely over a million. As such, he is one of the planet’s most notorious war criminals. President Obama made the decision in early 2009 to block the Justice Department from criminally investigating and prosecuting Cheney and his fellow torturers, as well as to protect them from foreign investigations and even civil liability sought by torture victims. Obama did that notwithstanding a campaign decree that even top Bush officials are subject to the rule of law and, more importantly, notwithstanding a treaty signed in 1984 by Ronald Reagan requiring that all signatory states criminally prosecute their own torturers. Obama’s immunizing Bush-era torturers converted torture from a global taboo and decades-old crime into a reasonable, debatable policy question, which is why so many GOP candidates are now openly suggesting its use.
  • But now, the Obama administration has moved from legally protecting Bush-era war criminals to honoring and gushing over them in public. Yesterday, the House of Representatives unveiled a marble bust of former Vice President Cheney, which — until a person of conscience vandalizes or destroys it — will reside in Emancipation Hall of the U.S. Capitol. At the unveiling ceremony, Cheney was, in the playful words of NPR, “lightly roasted” — as though he’s some sort of grumpy though beloved avuncular stand-up comic. Along with George W. Bush, one of the speakers in attendance was Vice President Joe Biden, who spoke movingly of Cheney’s kind and generous soul
  • Yesterday, the U.S. government unambiguously signaled to the world that not only does it regard itself as entirely exempt from the laws of wars, the principal Nuremberg prohibition against aggressive invasions, and global prohibitions on torture (something that has been self-evident for many years), but believes that the official perpetrators should be honored and memorialized provided they engage in these crimes on behalf of the U.S. government. That’s a message that most of the U.S. media and thus large parts of the American population will not hear, but much of the world will hear it quite loudly and clearly. How could they not?
Paul Merrell

'Ban Donald Trump' petition passes half a million as Republican hopeful calls for death... - 0 views

  • Donald Trump has claimed he will sign an executive order mandating the death penalty for all convicted cop killers, as a petition to deny him entry to the UK becomes the most signed on parliament’s website. It follows a week of controversial rhetoric from the Republican presidential hopeful. On Monday, the billionaire claimed as president he would order a “complete shutdown” of all Muslim immigration to the US, sparking a week-long row that has dominated media coverage and seen Trump recover in the polls, having fallen behind Ted Cruz in an earlier Monmouth poll.
  • Accepting the endorsement of the New England Police Benevolent Association, a local police union representing more than 4,000 officials, Trump issued his latest legally-murky commandment on Thursday night.
  • "One of the first things I do, in terms of executive order if I win, will be to sign a strong, strong statement that will go out to the country -- out to the world -- that anybody killing a policeman, policewoman, a police officer -- anybody killing a police officer, the death penalty. It's going to happen, OK?"
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    As though the President had the lawful power to issue such an Executive Order. Naivete about presidential powers or over-the-top electioneering or both?
Paul Merrell

Bragging that she and Israel were born within months, Clinton praises its 'prowess in war' - 0 views

  • Yesterday Hillary Clinton gave a speech in Washington at the Saban Forum of Brookings that included more pandering to Israel than any speech I’ve heard from any American politician. It was endless. Israel is a brave democracy, a light unto the nations, a miracle, its “prowess in war” is “inspiring,” and we must take the US-Israel relationship to the “next level.”
  • Just as the Republican candidates had attacked Boycott, Divestment and Sanctions movement (BDS) at the Republican Jewish Coalition last week, Clinton said that BDS was hurting the U.S.’s ability to fight terrorism. This is language straight out of Benjamin Netanyahu’s office. Speaking of Netanyahu, Clinton was asked by Saban what she would do on her first day in office and she said dutifully: on the first day I would extend an invitation to the Israeli prime minister to come to the United States hopefully within the first month, certainly as soon as it could be arranged to do exactly what I briefly outlined. To work toward very much strengthening and intensifying our relationship on military matters, on terrorism and on everything else that we can do more to cooperate on that will send a strong message to our own peoples as well as the rest of the world. So that is on my list for the first day. Here are more incredible pander quotes.
  • The boycott movement against Israel is making our alliance with Israel “more indispensable than ever”. Here is where she suggests that BDS is hurting US efforts to fight terrorism: In this period of period of peril, Israel needs a strong America by its side, and America needs a strong and secure Israel by our side. It’s in our national interest to have an Israel that remains a bastion of stability and a core ally in a region in chaos. An Israel strong enough to deter its enemies, and strong enough to take steps in the pursuit of peace. We need a brave democracy whose perseverance and pluralism are a rebuke to every extremist and tyrant. We need a light unto the nations as darkness threatens. Today three trends in the region and the world are converging and making our alliance with Israel more indispensable than ever. The first is a rising tide of extremism across a wide arc of instability, from North Africa to South Asia. The second is Iran’s continued aggression. The third is the growing effort to delegitimize Israel on the world stage. America and Israel need to address these threats together. We must take an already strong relationship to the next level. We have to develop a common, strategic vision and pursue a coordinated approach, deepen our cooperation and consultation across the board.
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  • Why is fighting BDS an American interest? Clinton never says, though she links the movement with anti-Semitism globally. As Secretary of State I called out systemic structural anti-Israel basis at the UN and fought to block the one sided Goldstone report particularly at a time when anti-semitism is on the rise across the world especially in Europe. We need to repudiate efforts to malign and undermine Israel and the Jewish people. The boycott, divestment and sanctions  movement known as BDS is the latest front in this battle. Demonizing Israeli scientists and intellectuals, even young students, comparing Israel to South African apartheid, now no nation is above criticism. But this is wrong and it should stop immediately.
  • And as for diplomacy, she says that no outside pressure should be brought on Israel: Some proponents of BDS may hope that pressuring Israel may lead to peace. Well that’s wrong too. No outside force is going to resolve the conflict between Israeli’s and Palestinian’s. Only a two state solution can provide Palestinian’s independence, sovereignty and dignity and provide Israelis the secure and recognized borders of a democratic Jewish state.
  • Some of this language is defensive. Clinton knows that the Democratic base doesn’t care about Israel: With every passing year we must tie bonds tighter, reach out to the next generation to bring them with us and do the hard necessary work of friendship because there is a new generation in both countries today that does not remember that shared past… Ben Gurion once said, “In Israel, in order to be a realist you must believe in miracles.” Well, tonight is the first night of Hanukah and the Jewish people and Israel and all over the world praise the almighty for the miracles, for the redemption, for the mighty deeds, for the saving acts. This season and this moment in history is a time once again for mighty deeds and saving acts. For us to rededicate and renew our great alliance. For us once again to light candles of hope that will shine through the darkness for our peoples and all peoples if we do it together. So Clinton is completely flouting the Democratic base. Because she feels secure inside the party on this issue. Imagine if she insulted Black Lives Matter in the way she’s insulting Palestinian-Americans and Arab-Americans. There would be an uprising in her own base. I have to believe that uprising will come on this issue too. As it is, Clinton is using fear to try and strengthen the U.S. Israel relationship even more.
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    Hillary isn't giving the swing vote much incentive to vote for her other than being female and having name familiarity.
Paul Merrell

Cy Vance's Proposal to Backdoor Encrypted Devices Is Riddled With Vulnerabilities | Jus... - 0 views

  • Less than a week after the attacks in Paris — while the public and policymakers were still reeling, and the investigation had barely gotten off the ground — Cy Vance, Manhattan’s District Attorney, released a policy paper calling for legislation requiring companies to provide the government with backdoor access to their smartphones and other mobile devices. This is the first concrete proposal of this type since September 2014, when FBI Director James Comey reignited the “Crypto Wars” in response to Apple’s and Google’s decisions to use default encryption on their smartphones. Though Comey seized on Apple’s and Google’s decisions to encrypt their devices by default, his concerns are primarily related to end-to-end encryption, which protects communications that are in transit. Vance’s proposal, on the other hand, is only concerned with device encryption, which protects data stored on phones. It is still unclear whether encryption played any role in the Paris attacks, though we do know that the attackers were using unencrypted SMS text messages on the night of the attack, and that some of them were even known to intelligence agencies and had previously been under surveillance. But regardless of whether encryption was used at some point during the planning of the attacks, as I lay out below, prohibiting companies from selling encrypted devices would not prevent criminals or terrorists from being able to access unbreakable encryption. Vance’s primary complaint is that Apple’s and Google’s decisions to provide their customers with more secure devices through encryption interferes with criminal investigations. He claims encryption prevents law enforcement from accessing stored data like iMessages, photos and videos, Internet search histories, and third party app data. He makes several arguments to justify his proposal to build backdoors into encrypted smartphones, but none of them hold water.
  • Before addressing the major privacy, security, and implementation concerns that his proposal raises, it is worth noting that while an increase in use of fully encrypted devices could interfere with some law enforcement investigations, it will help prevent far more crimes — especially smartphone theft, and the consequent potential for identity theft. According to Consumer Reports, in 2014 there were more than two million victims of smartphone theft, and nearly two-thirds of all smartphone users either took no steps to secure their phones or their data or failed to implement passcode access for their phones. Default encryption could reduce instances of theft because perpetrators would no longer be able to break into the phone to steal the data.
  • Vance argues that creating a weakness in encryption to allow law enforcement to access data stored on devices does not raise serious concerns for security and privacy, since in order to exploit the vulnerability one would need access to the actual device. He considers this an acceptable risk, claiming it would not be the same as creating a widespread vulnerability in encryption protecting communications in transit (like emails), and that it would be cheap and easy for companies to implement. But Vance seems to be underestimating the risks involved with his plan. It is increasingly important that smartphones and other devices are protected by the strongest encryption possible. Our devices and the apps on them contain astonishing amounts of personal information, so much that an unprecedented level of harm could be caused if a smartphone or device with an exploitable vulnerability is stolen, not least in the forms of identity fraud and credit card theft. We bank on our phones, and have access to credit card payments with services like Apple Pay. Our contact lists are stored on our phones, including phone numbers, emails, social media accounts, and addresses. Passwords are often stored on people’s phones. And phones and apps are often full of personal details about their lives, from food diaries to logs of favorite places to personal photographs. Symantec conducted a study, where the company spread 50 “lost” phones in public to see what people who picked up the phones would do with them. The company found that 95 percent of those people tried to access the phone, and while nearly 90 percent tried to access private information stored on the phone or in other private accounts such as banking services and email, only 50 percent attempted contacting the owner.
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  • In addition to his weak reasoning for why it would be feasible to create backdoors to encrypted devices without creating undue security risks or harming privacy, Vance makes several flawed policy-based arguments in favor of his proposal. He argues that criminals benefit from devices that are protected by strong encryption. That may be true, but strong encryption is also a critical tool used by billions of average people around the world every day to protect their transactions, communications, and private information. Lawyers, doctors, and journalists rely on encryption to protect their clients, patients, and sources. Government officials, from the President to the directors of the NSA and FBI, and members of Congress, depend on strong encryption for cybersecurity and data security. There are far more innocent Americans who benefit from strong encryption than there are criminals who exploit it. Encryption is also essential to our economy. Device manufacturers could suffer major economic losses if they are prohibited from competing with foreign manufacturers who offer more secure devices. Encryption also protects major companies from corporate and nation-state espionage. As more daily business activities are done on smartphones and other devices, they may now hold highly proprietary or sensitive information. Those devices could be targeted even more than they are now if all that has to be done to access that information is to steal an employee’s smartphone and exploit a vulnerability the manufacturer was required to create.
  • Privacy is another concern that Vance dismisses too easily. Despite Vance’s arguments otherwise, building backdoors into device encryption undermines privacy. Our government does not impose a similar requirement in any other context. Police can enter homes with warrants, but there is no requirement that people record their conversations and interactions just in case they someday become useful in an investigation. The conversations that we once had through disposable letters and in-person conversations now happen over the Internet and on phones. Just because the medium has changed does not mean our right to privacy has.
  • Vance attempts to downplay this serious risk by asserting that anyone can use the “Find My Phone” or Android Device Manager services that allow owners to delete the data on their phones if stolen. However, this does not stand up to scrutiny. These services are effective only when an owner realizes their phone is missing and can take swift action on another computer or device. This delay ensures some period of vulnerability. Encryption, on the other hand, protects everyone immediately and always. Additionally, Vance argues that it is safer to build backdoors into encrypted devices than it is to do so for encrypted communications in transit. It is true that there is a difference in the threats posed by the two types of encryption backdoors that are being debated. However, some manner of widespread vulnerability will inevitably result from a backdoor to encrypted devices. Indeed, the NSA and GCHQ reportedly hacked into a database to obtain cell phone SIM card encryption keys in order defeat the security protecting users’ communications and activities and to conduct surveillance. Clearly, the reality is that the threat of such a breach, whether from a hacker or a nation state actor, is very real. Even if companies go the extra mile and create a different means of access for every phone, such as a separate access key for each phone, significant vulnerabilities will be created. It would still be possible for a malicious actor to gain access to the database containing those keys, which would enable them to defeat the encryption on any smartphone they took possession of. Additionally, the cost of implementation and maintenance of such a complex system could be high.
  • Vance also suggests that the US would be justified in creating such a requirement since other Western nations are contemplating requiring encryption backdoors as well. Regardless of whether other countries are debating similar proposals, we cannot afford a race to the bottom on cybersecurity. Heads of the intelligence community regularly warn that cybersecurity is the top threat to our national security. Strong encryption is our best defense against cyber threats, and following in the footsteps of other countries by weakening that critical tool would do incalculable harm. Furthermore, even if the US or other countries did implement such a proposal, criminals could gain access to devices with strong encryption through the black market. Thus, only innocent people would be negatively affected, and some of those innocent people might even become criminals simply by trying to protect their privacy by securing their data and devices. Finally, Vance argues that David Kaye, UN Special Rapporteur for Freedom of Expression and Opinion, supported the idea that court-ordered decryption doesn’t violate human rights, provided certain criteria are met, in his report on the topic. However, in the context of Vance’s proposal, this seems to conflate the concepts of court-ordered decryption and of government-mandated encryption backdoors. The Kaye report was unequivocal about the importance of encryption for free speech and human rights. The report concluded that:
  • States should promote strong encryption and anonymity. National laws should recognize that individuals are free to protect the privacy of their digital communications by using encryption technology and tools that allow anonymity online. … States should not restrict encryption and anonymity, which facilitate and often enable the rights to freedom of opinion and expression. Blanket prohibitions fail to be necessary and proportionate. States should avoid all measures that weaken the security that individuals may enjoy online, such as backdoors, weak encryption standards and key escrows. Additionally, the group of intelligence experts that was hand-picked by the President to issue a report and recommendations on surveillance and technology, concluded that: [R]egarding encryption, the U.S. Government should: (1) fully support and not undermine efforts to create encryption standards; (2) not in any way subvert, undermine, weaken, or make vulnerable generally available commercial software; and (3) increase the use of encryption and urge US companies to do so, in order to better protect data in transit, at rest, in the cloud, and in other storage.
  • The clear consensus among human rights experts and several high-ranking intelligence experts, including the former directors of the NSA, Office of the Director of National Intelligence, and DHS, is that mandating encryption backdoors is dangerous. Unaddressed Concerns: Preventing Encrypted Devices from Entering the US and the Slippery Slope In addition to the significant faults in Vance’s arguments in favor of his proposal, he fails to address the question of how such a restriction would be effectively implemented. There is no effective mechanism for preventing code from becoming available for download online, even if it is illegal. One critical issue the Vance proposal fails to address is how the government would prevent, or even identify, encrypted smartphones when individuals bring them into the United States. DHS would have to train customs agents to search the contents of every person’s phone in order to identify whether it is encrypted, and then confiscate the phones that are. Legal and policy considerations aside, this kind of policy is, at the very least, impractical. Preventing strong encryption from entering the US is not like preventing guns or drugs from entering the country — encrypted phones aren’t immediately obvious as is contraband. Millions of people use encrypted devices, and tens of millions more devices are shipped to and sold in the US each year.
  • Finally, there is a real concern that if Vance’s proposal were accepted, it would be the first step down a slippery slope. Right now, his proposal only calls for access to smartphones and devices running mobile operating systems. While this policy in and of itself would cover a number of commonplace devices, it may eventually be expanded to cover laptop and desktop computers, as well as communications in transit. The expansion of this kind of policy is even more worrisome when taking into account the speed at which technology evolves and becomes widely adopted. Ten years ago, the iPhone did not even exist. Who is to say what technology will be commonplace in 10 or 20 years that is not even around today. There is a very real question about how far law enforcement will go to gain access to information. Things that once seemed like merely science fiction, such as wearable technology and artificial intelligence that could be implanted in and work with the human nervous system, are now available. If and when there comes a time when our “smart phone” is not really a device at all, but is rather an implant, surely we would not grant law enforcement access to our minds.
  • Policymakers should dismiss Vance’s proposal to prohibit the use of strong encryption to protect our smartphones and devices in order to ensure law enforcement access. Undermining encryption, regardless of whether it is protecting data in transit or at rest, would take us down a dangerous and harmful path. Instead, law enforcement and the intelligence community should be working to alter their skills and tactics in a fast-evolving technological world so that they are not so dependent on information that will increasingly be protected by encryption.
Paul Merrell

Donald Trump to postpone Israel trip until 'after I become US president' | US news | Th... - 0 views

  • Donald Trump has said he will “postpone” a trip to Israel and a meeting with the country’s prime minister, Binyamin Netanyahu, until “after I become president of the US”.
  • Netanyahu had on Wednesday confirmed he would meet the frontrunner for the Republican presidential nomination to succeed Barack Obama in the White House despite an international outcry over his suggestion that Muslims should be banned from entering the US. Several hours after confirming the meeting, Netanyahu’s office tweeted that the prime minister rejected Trump’s comments about Muslims but had agreed to meet any US presidential candidate who visited Israel.
  • Trump’s visit had been opposed by dozens of Israeli MPs – both Jews and Arabs – after his remarks drew condemnation across the Israeli political spectrum. The cancellation also followed reports in the Israeli media that Trump had requested a visit to the Haram al-Sharif/Temple Mount religious site, revered by Muslims and Jews alike, and home to the al-Aqsa mosque – one of the most important sites in Islam. Some 37 Israeli MPs had signed a letter asking that Trump not be allowed to visit in light of his remarks. The letter, drafted by MP Michal Rozin, and mainly signed by opposition lawmakers, said that, “while leaders around the world condemn the Republican presidential candidate’s racist and outrageous remarks, Netanyahu is warmly embracing him” and any meeting would “disgrace Israel’s democratic character and hurt its Muslim citizens”. Equally damaging for Trump was the fact that Israel’s rightwing energy minister, Yuval Steinitz, one of Netanyahu’s closest political allies, had weighed in, criticising Trump’s remarks. “I recommend fighting terrorist and extremist Islam, but I would not declare a boycott of, ostracism against, or war on Muslims in general,” Steinitz told Israel’s Army Radio.
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  • Netanyahu’s office insisted it had not intervened over the cancellation and had not spoken to Trump about his decision. Trump’s proposed visit had clearly created problems for Netanyahu, whose office had declined to comment on Tuesday about the billionaire’s intended trip, then said he was still welcome on Wednesday. By Wednesday evening, however, Netanyahu was seeking to distance himself more forcefully from Trump. A statement released by the prime minister’s office said: “The State of Israel respects all religions and protects stringently the rights of all its citizens. At the same time, Israel is struggling with extremist Islam that is attacking Muslims, Christian and Jews as one and is threatening the entire world.” The cancellation is a blow to Trump, with Israel treated as a regular campaign stop for many US presidential candidates.
  • As Noah Pollak, the executive director for the Emergency Committee for Israel said: “Israelis appreciate American moral support and will always give our politicians a gracious reception. For the candidates, visiting is an easy way to be seen showing support for a close ally and gaining exposure to Middle East policy issues.” However, Pollak pointed out “trashing anyone who disagrees with him works for Trump domestically, but it won’t work with the prime minister of a close ally who is especially beloved by Republicans. Netanyahu criticized Trump, and Trump can’t attack him. The trip would have been humiliating, so he bailed.” Underlining the hints of difficulties and tensions around his proposed trip, Trump – in yet another of the brazen untruths that have become the hallmark of his campaign – had on Wednesday attempted to deny he had said he would be meeting Netanyahu despite the fact that the comment had been recorded.
Paul Merrell

Even as Clinton opposes sanctions over Israeli settlements, new poll shows her Democrat... - 0 views

  • Last weekend Hillary Clinton joined the Republican candidates in coming down hard against Boycott, Divestment and Sanctions against Israel. Speaking to her financial sponsor Haim Saban as well as a D.C. audience, she described the campaign as anti-semitic and wrong, and meantime offered vague opposition to Israeli settlements. Well there’s a good reason Clinton doesn’t want the issue politicized. If the matter were actually debated openly between Republicans and Democrats, her own base would be against her. A new poll of American attitudes on the conflict from Shibley Telhami at the Brookings Institution says that Democrats favor sanctions to counter Israeli settlement construction. Telhami reports: It is notable that among Democrats, more people (49%) recommend either imposing economic sanctions or taking more serious action [re settlements], than those recommending doing nothing or limiting U.S. opposition towards (46%)
  • The poll also shows broad support for a one-state outcome among Americans. The poll at Telhami’s academic site defines one state as “a single democratic state in which both Jews and Arabs are full and equal citizens, covering all of what is now Israel and the Palestinian Territories.” Those who advocate a one-state solution, 31%, are now comparable to those who advocate a two-state solution, 35%. The most notable change is that Republicans this year equally support a two-state solution vs. one-state solution (29% each). This shows that Democrats support a two-state-solution over one state by 45 to 33. Still: a third of Dem voters are for a single democratic state with equal citizenship. Dems don’t like the Israel lobby either. The poll shows that by more than a three-to-one ratio, Democrats feel that Israel has too much influence in American politics. And Americans generally also are turned off:
  • Overall, twice as many Americans say the Israeli government has too much influence (37%) than say too little influence (18%), while a plurality (44 %) say it’s the right level. The story once again is more pronounced in the partisan views: Among Democrats, about half (49%) say Israel has too much influence, compared with 14% who say Israel has too little influence, and 36 % who say it’s the right level. Netanyahu’s popularity has crashed among Dems, though he’s a heroic figure to Republicans. Notice that Democratic attitudes on blame for the recent “escalation in violence” actually track attitudes on our site. Democrats understand the Palestinian violence as a response to lack of freedom: A plurality of Democrats, 37%, blame continued Israeli occupation and settlement expansion, followed by 35% who blame the absence of serious peace diplomacy, while 15% blame Palestinian extremists. In contrast, 40% of Republicans blame Palestinian extremists first…
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  • And again, Americans are for a secular democracy there. Where did we ever get that idea? Strong American majorities continue to favor Israel’s democracy over its Jewishness in the absence of a two-state solution (72% in 2015, compared with 71% in 2014). Hillary Clinton has very different attitudes. She calls Israel “a thriving raucous democracy” and a “light unto the nations,” and is fundamentally opposed to the idea of any pressure on Israel. She said: Some proponents of BDS may hope that pressuring Israel may lead to peace. Well that’s wrong too. No outside force is going to resolve the conflict between Israeli’s and Palestinian’s.
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    "Negotiations" for a two-state solution has never been anything more than an excuse for prolonging an apartheid government across all of Palestine. The fact that public support is building in the U.S. for a single-state, secular government for all of Palestine including Israel has to be keeping Israel's right-wing leadership up at night. Israel is losing the BDS battle for U.S. hearts and minds. Hillary risks eroding her support by continuing to push for the increasingly unpopular two-state solution.
Paul Merrell

Putin Throws Down the Gauntlet - 0 views

  • Would you be willing to defend your country against a foreign invasion? That’s all Putin is doing in Syria. He’s just preempting the tidal wave of jihadis that’ll be coming his way once the current fracas is over.  He figures it’s better to exterminate these US-backed maniacs in Syria now than face them in Chechnya, St Petersburg and Moscow sometime in the future.  Can you blame him? After all, if Washington’s strategy works in Syria, then you can bet they’ll try the same thing in Beirut, Tehran and Moscow. So what choice does Putin have? None. He has no choice.  His back is against the wall. He has to fight.  No one in Washington seems to get this. They think Putin can throw in the towel and call it “quits” at the first sign of getting bogged down. But he can’t throw in the towel because Russia’s facing an existential crisis.  If he loses, then Russia’s going to wind up on the same scrap heap as Afghanistan, Iraq or Libya. You can bet on it. So the only thing he can do is win. Period. Victory isn’t an option, it’s a necessity.
  • Of course they’ve noticed. Everyone’s noticed. Everyone knows Washington is on the warpath and its leaders have gone stark raving mad. How could they not notice? But all that’s done is focus the mind on the task at hand, and the task at hand is to whoop the tar out of the terrorists, put an end to Washington’s sick little jihadi game, and go home. That’s Russia’s plan in a nutshell.  No one is trying to cobble together the long-lost Soviet empire. That’s pure bunkum.  Russia just wants to clean up this nest of vipers and call it a day. There’s nothing more to it than that. But what if the going gets tough and Syria becomes a quagmire? That doesn’t change anything, because Russia still has to win. If that means sending ground troops to Syria, then that’s what Putin will do. If that means asymmetrical warfare, like arming the Kurds or the Yemenis, or the Taliban or even disparate anti-regime Shiites in Saudi Arabia, then he’ll do that too. Whatever it takes. This isn’t a game, it’s a fight for survival; Russia’s survival as a sovereign country. That’s what the stakes are. That’s not something Putin takes lightly.
  • The reason I ask this now is because, on Tuesday, Secretary of State John Kerry is scheduled to attend an emergency meeting in Moscow with his Russian counterpart Sergei Lavrov to discuss issues that are too sensitive to reveal to the public. There’s a lot of speculation about what the two men will talk about, but the urgency and the secrecy of the meeting suggests that the topic will be one of great importance. So allow me to make a guess about what the topic will be. When Kerry arrives in Moscow tomorrow he’ll be rushed to meeting room at the Kremlin where he’ll be joined by Lavrov, Putin, Minister of Defense Sergey Shoygu and high-ranking members from military intelligence. Then, following the initial introductions, Kerry will be shown the evidence Russian intelligence has gathered on last Sunday’s attack on a Syrian military base east of Raqqa that killed three Syrian soldiers and wounded thirteen others. The Syrian government immediately condemned the attack and accused US warplanes of conducting the operation. Later in the day,  Putin delivered an uncharacteristically-harsh and threatening statement that left no doubt that he thought the attack was a grave violation of the accepted rules of engagement and, perhaps, a declaration of war.
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  • Why would an incident in the village of Ayyash in far-flung Deir Ezzor Province be so important that it would bring the two nuclear-armed adversaries to the brink of war? I’ll tell you why: It’s because there were other incidents prior to the bombing in Ayyash that laid the groundwork for the current clash. There was the ISIS downing of the Russian airliner that killed 224 Russian civilians. Two weeks after that tragedy, Putin announced at the G-20 meetings that he had gathered intelligence proving that 40 countries –including some in the G-20 itself–were involved in the funding and supporting of ISIS. This story was completely blacked out in the western media and, so far, Russia has not revealed the names of any of the countries involved. So, I ask you, dear reader, do you think the United States is on that list of ISIS supporters?
  • Then there was the downing of the Russian Su-24, a Russian bomber that was shot down by Turkish F-16s while it was carrying out its mission to exterminate terrorists in Syria. Many analysts do not believe that the   Su-24 could have been destroyed without surveillance and logistical support provided by US AWACs or US satellites. Many others scoff at the idea that Turkey would engage in such a risky plan without the go-ahead from Washington. Either way, the belief that Washington was directly involved in the downing of a Russian warplane is widespread. So, I ask you, dear reader, do you think Washington gave Turkey the greenlight? Finally, we have the aerial attack on the Syrian military base in Deir Ezzor, an attack that was either executed by US warplanes or US-coalition warplanes. Not only does the attack constitute a direct assault on the Russian-led coalition (an act of war) but the bombing raid was also carried out in tandem  with a “a full-scale ISIS offensive on the villages of Ayyash and Bgelia.”  The coordination suggests that either the US or US allies were providing  air-cover for ISIS terrorists to carry out their ground operations.  Author Alexander Mercouris– who is certainly no conspiracy nut–expands on this idea in a recent piece at Russia Insider which provides more detail on the incident. The article begins like this:
  • “Did Members of the US-Led Coalition Carry Out an Air Strike to Help ISIS? Russia Implies They Did. Russian statement appears to implicate aircraft from two member states of the US led coalition in the air strike on the Syrian military base in Deir az-Zor….This information – if it is true – begs a host of questions. Firstly, the Syrian military base that was hit by the air strike was apparently the scene of a bitter battle between the Syrian military and the Islamic State.  It seems that shortly after the air strike – and most probably as a result of it – the Islamic State’s fighters were able to storm it. Inevitably, that begs the question of whether the aircraft that carried out the air strike were providing air support to the fighters of the Islamic State. On the face of it, it looks like they were. After all, if what happened was simply a mistake, it might have been expected that the US and its allies would say as much.  If so, it is an extremely serious and worrying development, suggesting that some members of the US-led anti-Islamic State coalition are actually in league with the Islamic State.  (“Did Members of the US-Led Coalition Carry Out an Air Strike to Help ISIS?” Alexander Mercouris, Russia Insider)
  • So there it is in black and white. The Russians think someone in the US-led coalition is teaming up with ISIS. That should make for some interesting conversation when Kerry sashays into the Kremlin today. Does Kerry have any clue that Putin and his lieutenants are probably going to produce evidence that coalition warplanes were involved in the bombing of the Syrian military base?  How do you think he’ll respond to that news? Will he apologize or just stand there dumbstruck? And how will he react when Putin tells him that if a similar incident takes place in the future, Russian warplanes and anti-aircraft units are going to shoot the perpetrator down? If I am not mistaken, Kerry is in for a big surprise on Tuesday. He’s about to learn that Putin takes war very seriously and is not going to let Washington sabotage his plans for success. If Kerry’s smart, he’ll pass along that message to Obama and tell him he needs to dial it down a notch if he wants to avoid a war with Russia.
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    Article published just before Kerry's meeting with Lavrov, et al, after which Kerry announced that Assad stepping down is no longer a U.S. pre-condition of negotiating peace in Syria. It's important to keep in mind here that non-interference in the internal affairs of foreign nations is a fundamental tenet of international law, one that the U.S. regime change position on Syria openly flouted, as it did in Afghanistan, Iraq, and Libya. So what is behind Kerry's suddenly-acquired respect for the right of the people of Syria to choose their own leader? Mike Whitney offers us a smorgasbord of reasons in this article, all of which boil down to Russian blackmail, a threat to go public with incredibly damning information on what the U.S. and allies have been up to in Syria. This may be a turning point in the Syrian War, since the positions of the Gulf Coast Council (Saudi Arabia, Qatar, UAE, etc.) and the salafist jihadis they have supplied to take down Assad has been unequivocal insistence that Assad agree to step down as a precondition of negotiation.  I.e., the U.S. is forking away from the Gulf Coast Council/jihadi position. How will they react? 
Paul Merrell

Did Members of the US-Led Coalition Carry Out an Air Strike to Help ISIS? Russia Implie... - 0 views

  • The argument over the air strike on the Syrian military base in Deir az-Zor has taken a strange and worrying turn.The US has categorically denied that any of its aircraft were involved. It has admitted that its aircraft were in the area, but says that they carried out an air strike 55 km away.The Russians say that is true. However, they also say that it is not the whole truth.The Russians say that in addition to the US aircraft, two pairs of aircraft - in other words four aircraft in total - from two other countries that are also members of the US led coalition were also flying at the time of the air strike over Deir az-Zor.The Russians have not actually said it was these aircraft that carried out the air strike. However, they have pointed out that the US has failed to admit to the presence of these aircraft. They are asking why?
  • It is the broadest of hints, and it is difficult to believe that the Russians do not think that it was these aircraft that carried out the air strike.This information - if it is true - begs a host of questions.Firstly, the Syrian military base that was hit by the air strike was apparently the scene of a bitter battle between the Syrian military and the Islamic State.  It seems that shortly after the air strike - and most probably as a result of it - the Islamic State’s fighters were able to storm it.Inevitably, that begs the question of whether the aircraft that carried out the air strike were providing air support to the fighters of the Islamic State.  On the face of it, it looks like they were. After all, if what happened was simply a mistake, it might have been expected that the US and its allies would say as much.If so, it is an extremely serious and worrying development, suggesting that some members of the US-led anti-Islamic State coalition are actually in league with the Islamic State.
  • Secondly, Deir az-Zor is the area of Syria from which the Islamic State exports most of its oil. Again, this inevitably begs the question of whether the Islamic State attack on the base - and the air strike seemingly carried out in support of it - was in some way connected to the illegal oil trade, and might have been intended to protect it.Thirdly, there is the obvious question of which countries’ aircraft were involved. The Russians are not identifying these countries - at least for the moment - though they obviously know or think they know which they are.  The one thing however that the Russians are saying is that the aircraft of more than one country was involved.The Russians are also drawing attention to the US’ failure to admit to the presence of the aircraft of these countries, which strongly suggests that the US is protecting them, whichever countries they are.Lastly, it is interesting that the Russians seem to be so well informed about this incident.  If the Russians do indeed know how many aircraft from the US-led coalition were flying at any one time over Der az-Zor, and can identify the countries they belong to, then the inescapable conclusion is that their surveillance and intelligence operation in Syria is very effective indeed.
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  • This raises the interesting possibility that this sort of thing has not only happened before, but that it has been going on unreported for some time, and that the reason why the Russians made so much of this particular incident was so as to warn the US that with the Russian surveillance and intelligence operation in Syria now so good the US cannot get away with doing this sort of thing any longer. If Russian reporting of this incident is intended as a warning to the US, then that might explain why the Russians have held back information about the identity of the countries whose aircraft were involved in this incident.  With the warning made, the Russians may feel that there is no reason to inflame the situation further by making public accusations against particular countries, whose governments would have no option but to dispute them.As is now happening continuously with news coming out of Syria, Western governments and the Western media have pulled down a curtain of silence over this story.This is scarcely surprising since any hint that any Western ally is in league with the Islamic State - even in the most informal sense - would after the Paris attacks be politically explosive.
  • In the case of Britain - if it was its aircraft that were involved - an attack on a Syrian military base would be in open defiance of the will of the British parliament.The attempt to suppress information about this incident however in no way diminishes its importance.  The two coalitions supposedly fighting the Islamic State - the US-led coalition and the Russian-led coalition - have in the space of just two weeks twice fought each other - once when the SU24 was shot down, and now with the attack on the Syrian base.  On both occasions it was members of the US-led coalition that acted as the aggressors.That makes it doubly important that as many people as possible are informed about this incident.In the meantime it is a certainty that all sorts of angry conversations are going on about it at various levels between Moscow and Washington.
Paul Merrell

Martin Shkreli Arrested on Securities Fraud Charges - 0 views

  • Martin Shkreli, a boastful pharmaceutical executive who came under withering criticism for price gouging vital drugs, denied securities fraud charges on Thursday following an early morning arrest, and was freed on a $5 million bond. While the 32-year-old has earned a rare level of infamy for his brazenness in business and his personal life, what he was charged with had nothing to do with skyrocketing drug prices. He is accused of repeatedly losing money for investors and lying to them about it, illegally taking assets from one of his companies to pay off debtors in another. “Shkreli essentially ran his company like a Ponzi scheme where he used each subsequent company to pay off defrauded investors from the prior company,” Brooklyn U.S. Attorney Robert Capers said at a press conference.
  • Evan Greebel, a New York lawyer, who is alleged in the federal indictment to have helped Shkreli in his schemes, was also arrested and charged. Like Shkreli, he pleaded not guilty, and he was freed on a $1 million bond. Both men and their lawyers declined to comment after their court appearance.
  • Read the full text of the indictment here In the federal indictment and a complaint by the Securities and Exchange Commission, authorities say Shkreli began losing money and lying to investors from the time he began managing money. In his mid-20s, he got nine investors to place $3 million with him and at one point he had only $331. Securities fraud is hardly unheard of on Wall Streeet and the amounts involved here are nowhere near on the scale of Bernie Madoff. But Shkreli’s case has drawn such attention because of his defiant price-gouging and his own up-by-the-bootstraps history. The son of immigrants from Albania and Croatia who did janitorial work and raised him and his brothers in working-class Brooklyn, Shkreli seemed at first to embody the American dream and then to mock it. After dropping out of an elite Manhattan high school, he worked as an intern for Jim Cramer’s hedge fund as a 17-year-old and quickly impressed with his ability to call stocks. He created hedge funds, taught himself biology and, after earning a BA at Baruch College in New York City, began hedge funds investing in biotech.
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  • He became famous within a certain world but entered public consciousness after he raised the price more than 55-fold for Daraprim in September from $13.50 per pill to $750. It is the preferred treatment for a parasitic condition known as toxoplasmosis, which can be deadly for unborn babies and patients with compromised immune systems including those with HIV or cancer. His company, Turing Pharmaceuticals AG, bought the drug, moved it to a closed distribution system and instantly drove the price into the stratosphere. He drew shocked rebukes from Congress, doctors and presidential candidates, and brought public attention to the rising prices of older drugs. Donald Trump called Shkreli a “spoiled brat,” and the BBC dubbed him the “most hated man in America.” Bernie Sanders, the Democratic presidential candidate, rejected a $2,700 campaign donation from him, directing it to an HIV clinic. A spokesman said the campaign would not keep money “from this poster boy for drug company greed.” All the criticism seemed at first to have some impact and Shkreli said he would lower the price. Then he reneged. When Hillary Clinton tried one more time last month to get him to cut the cost, he dismissed her with the tweet “lol.” At a Forbes summit in New York this month, wearing a hooded sweatshirt, he said if he could have done it over, “I probably would have raised the price higher,” adding, “My investors expect me to maximize profits.”
  • Shkreli did further damage to his public image with other acts and boasts. He spent millions on the only copy of a Wu-Tang Clan album that music fans are desperate to hear and then told Bloomberg Businessweek that he had no immediate plans to listen to it. He takes often to Twitter and message boards, bragging about his business strategies, musical tastes and politics; he live-streams from his office for long stretches. The SEC complaint and federal indictment lay out a series of schemes and cover-ups carried out by Shkreli. Capers said authorities began investigating him as early as 2014.
  • Barely 23, he was managing hedge fund Elea Capital in New York and lost it all in 2007. Around then, a trade with Lehman Brothers ended with a $2.3 million judgment against him, prosecutors said. In 2010, he lost his clients’ $3 million investment in his new fund, MSMB Capital. In 2011, he bet that shares of Orexigen Therapeutics Inc. would fall and wound up owing $7 million to his broker, Merrill Lynch, authorities said. He couldn’t pay, and he, an unnamed accomplice and MSMB Capital eventually extinguished the debt with a $1.35 million settlement, they said. Part of that money came from his next firm, authorities said. After the collapse of MSMB Capital, Shkreli launched MSMB Healthcare with about $5 million from 13 investors. He paid himself “far in excess” of the agreed-upon 1 percent management fee and 20 percent profit incentive, according to the SEC.
  • Shkreli then used cash from MSMB Healthcare to invest in Retrophin, the pharmaceutical company he founded in 2011, even though it “had no products or assets,” prosecutors said. Later, he used the assets of Retrophin to repay angry investors in his hedge funds, prosecutors said. Shkreli is confident that he will be cleared of the charges, according to a statement on his behalf. Shkreli is particularly disappointed that his litigation with Retrophin has become a government enforcement matter, according to the statement. He also denied the charges regarding the MSMB entities, which he said involve complex accounting matters that prosecutors and the SEC fail to understand, according to the statement. “It is no coincidence that these charges, the result of investigations which have been languishing for considerable time, have been filed at the same time of Shkreli’s high-profile, controversial and yet unrelated activities,” according to the statement. “The government suggested that Mr. Shkreli was involved in a Ponzi scheme. Ponzi victims do not make money, yet Mr. Shkreli’s investors enjoyed strong results.”
  • As Shkreli’s losses mounted, so did his lies. He fabricated portfolio statements and, with his lawyer’s help, deceived the SEC and outside accountants. He backdated records, manufactured a phony loan agreement between Retrophin and a hedge fund, and created sham consulting agreements with Retrophin as a way to route the company’s cash to his earlier investors. Greebel, the arrested lawyer, made sure Retrophin’s outside accountants were unaware of Shkreli’s financial maneuvers and helped him concoct the consulting agreements used to repay the hedge fund investors, the U.S. said. The cases mirror a lawsuit brought by Retrophin. Shkreli blithely dismissed his old company’s claims, saying, “The $65 million Retrophin wants from me would not dent me. I feel great. I’m licking my chops over the suits I’m going to file against them.” Earlier, he had denied wrongdoing in a post on InvestorsHub after Retrophin disclosed it had received a subpoena from federal prosecutors and the preliminary findings from its own investigation of Shkreli. He called the company’s allegations “completely false, untrue at best and defamatory at worst.”
  • “Every transaction I’ve ever made at Retrophin was done with outside counsel’s blessing,” he said on the investment blog in February, without identifying the lawyers. When Shkreli was working for Cramer’s firm, he was still a teenager. After recommending successful trades, Shkreli eventually set up his own hedge fund, quickly developing a reputation for trashing biotechnology stocks in online chatrooms and shorting them, to enormous profit. Widely admired for his intellect and sharp eye, he set up Retrophin to develop drugs and acquire older pharmaceuticals that could be sold for higher profits. Turing, which is less than a year old and has raised $90 million in financing, has followed a similar strategy with the purchase of drugs, including Daraprim. Shkreli recently bought a majority stake in KaloBios Pharmaceuticals Inc. after Turing received a warning from the New York attorney general that the distribution network for Daraprim may violate antitrust laws. State officials made their concerns known to Turing and Shkreli in an Oct. 12 letter obtained by Bloomberg.
  • KaloBios recently acquired the license for benznidazole, a standard treatment for Chagas, a deadly parasitic infection most common in South and Central America. The firm announced plans to increase the cost from a couple hundred dollars for two months to a pricing structure like that for hepatitis-C drugs, which can run to nearly $100,000 for 12 weeks.
  • With the federal charges and regulatory actions, Shkreli could be banned from running a public company, which could put the future of KaloBios into question. Trading in KaloBios shares was halted after the stock fell 53 percent. It’s less clear what the impact could be on Turing, which is closely held.
  • Federal authorities will have to ask a judge to impose an asset freeze if they want to guarantee Shkreli doesn’t dispose of ill-gotten gains. The charges suggest that a small group of health-care firms—ones that acquire the rights to drugs and significantly increase their prices—is drawing the scrutiny of regulators and prosecutors, with a possible chilling effect on aggressive drug-pricing strategies. Legislators are already paying attention. A hearing of the Senate Special Committee on Aging on Dec. 9 scrutinized such tactics. Before Shkreli started Turing, Retrophin raised the price of Thiola, used to treat a rare condition causing debilitating recurrences of kidney stones, from $1.50 a pill to $30. “Some of these companies seem to act more like hedge funds than traditional pharmaceutical companies,” said Senator Susan Collins, a Maine Republican who ran the recent hearing. George Scangos, CEO of biotechnology giant Biogen Inc., went further, saying in an interview, “Turing is to a research-based company like a loan shark is to a legitimate bank.”
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    Couldn't happen to a nicer guy.
Paul Merrell

What Does Today's "Rate Hike" Mean? -- Paul Craig Roberts - PaulCraigRoberts.org - 0 views

  • Paul Craig Roberts The Federal Reserve raised the interbank borrowing rate today by one quarter of one percent or 25 basis points. Readers are asking, “what does that mean?” It means that the Fed has had time to figure out that the effect of the small “rate hike” would essentially be zero. In other words, the small increase in the target rate from a range of 0 to 0.25% to 0.25 to 0.50% is insufficient to set off problems in the interest-rate derivatives market or to send stock and bond prices into decline.
  • However, the fact of the matter is that the available liquidity exceeded demand in the old rate range. The purpose of raising interest rates is to choke off credit demand, but there was no need to choke off credit demand when the demand for credit was only sufficient to keep the average rate in the midpoint of the old range. This “rate hike” is a fraud. It is only for the idiots in the financial media who have been going on about a rate hike forever and the need for the Fed to protect its credibility by raising interest rates.
  • Thus, the rate hike has the effect of making smaller banks pay higher interest expense to the mega-banks favored by the Federal Reserve. A different way of putting it is that the “rate hike” favors banks sitting on excess reserves over banks who are lending to businesses and consumers in their community. In other words, the rate hike just facilitates more looting by the One Percent.
Paul Merrell

Hillary Clinton Has The Most Bogus Twitter Followers - 0 views

  • When it comes to fake Twitter followers, Hillary Clinton is winning the presidential race by a landslide. Clinton has more fake followers and a higher ratio of bogus Twitter fans than any of the other main 2016 presidential contenders, a Vocativ analysis shows. On the other end of the scale, the candidates with the lowest percentage of fake Twitter followers are Donald Trump and Bernie Sanders. Contrary to what one might guess from his reputation for extravagant self-promotion, Trump’s 2.6 million Twitter followers are 90 percent real people. Only 311,388 were deemed fake by the analysis using the tool TwitterAudit. Bernie Sanders was tied for the highest ratio of authentic followers—90 percent of his 300,000-plus followers are real people. Then comes Gov. Jeb Bush with 89% of his followers registering as real. On the bottom of the Twitter list is Clinton, with a whopping 35 percent of her 2.3 million Twitter followers coming up as fake.
  • TwitterAudit, a social media analysis tool, says on its website that it judges a Twitter account’s authenticity based on its number of tweets, the date of its last tweet and the ratio of its followers to friends. The fake Twitter accounts can be bots, which are accounts run by automated software programming. They can also be accounts created by real people but with an agenda of spreading political advertisements. But under both scenarios, they are certainly not a genuine measure of candidate popularity.
Paul Merrell

Russia Deploys S-400 Air Defense Systems to Syria - Geopolitics - nsnbc international |... - 0 views

  • Moscow responds to the downing of a Su-24 bomber by a Turkish F-16 by deploying S-400 Air Defense Systems to Syria. Russian President Vladimir Putin said that Russia will use every available resource to ensure the safety of flights over Syria, while Russian Foreign Minister Sergey Lavrov assures that Moscow is not planning a war with Turkey. The geopolitical context.
  • Putin also commented on the protection of the Hmeimim Air Base in Syria, saying: “The S-300 air defense complex will be moved to our air base in Syria. I do hope that this and other measures that we will take will be enough to make flights safe. … I would like to say that we will take the most serious attitude to what has happened and all of our means will be employed for maintaining security.” Putin learned about the downing of the Su-24 during talks with Jordanian King Abdullah II. Putin described the incident as a stab in the back from a State sponsor of terrorism. Turkey, for its part, had called on NATO members to discuss the incident. NATO Secretary-General Stoltenberg noted that Turkey had the right to defend itself. The incident was, however, rather downplayed by governments of most NATO member States. Historically, the shoot-down of a military jet is rarely a precursor of a war, even though sensationalized media reports could make one believe otherwise.
  • On Wednesday Russian Defense Minister Sergey Shoigu commented on the incident, saying that Russia would deploy the S-400 Triumf Air Defense System to the Hmeimim Air Base. Shoigu noted that the decision to deploy the system had been made by Russia’s commander-in-chief.
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  • Russian Foreign Minister Sergey Lavrov commented on the incident, saying that Russia had no plans to wage a war against Turkey. Lavrov stressed that: “Our attitude towards Turkish people has not changed. … We have questions only to the Turkish leadership.” Deescalating tensions caused by the incident is in fact also in Moscow’s interest, considering the Russian – Turkish “Turkish Stream” pipeline project. The pipeline can compensate for the loss of stability in Ukraine and counter Washington’s and London’s ambitions to throw a spanner into Russian – Continental European commerce and relations based on, among others, converging energy-security interests. The incident is, in other words, one match in ….. ……
  • A Game of Geopolitics. It is noteworthy that the incident occurred in northern Lattakia province, in a region that is controlled by a Turkmen militia and Jabhat al-Nusrah. Both are Turkish proxies. Although it is not officially declared policy, most independent analysts agree that primarily Washington and London attempt to establish a Kurdish Corridor in northern Syria, northern Iraq as well as a belt of low-intensity conflicts from the Mediterranean, along Russia’s southern borders to Pakistan. While Turkey is supporting and cooperating with the Kurdish administration in northern Iraq, it is opposed to a larger Kurdish region along its southern border in Syria. Hence Ankara’s support of Jabhat al-Nusrah and Turkmen “rebels” in northwestern Syria. Moscow for its part, is a traditional ally of the Turkish Kurdistan Worker’s Party PKK, using the PKK as a Moscow-version of NATO’s stay-behinds. It is within this geopolitical context that the downing of a single Russian Su-24 attains the perspective it deserves. It is one incident in a regional proxy war, that can only be played out due to the fact that the UN and the UN Security Council are virtually defunct.
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    The deployment of the S-400 systems had been announced prior to the Russian fighter jet being shot down by Turkey.
Paul Merrell

Exxon Knew Everything There Was to Know About Climate Change by the Mid-1980s-and Denie... - 0 views

  • A few weeks before the last great international climate conference—2009, in Copenhagen—the e-mail accounts of a few climate scientists were hacked and reviewed for incriminating evidence suggesting that global warming was a charade. Eight separate investigations later concluded that there was literally nothing to “Climategate,” save a few sentences taken completely out of context—but by that time, endless, breathless media accounts about the “scandal” had damaged the prospects for any progress at the conference. Ad Policy Now, on the eve of the next global gathering in Paris this December, there’s a new scandal. But this one doesn’t come from an anonymous hacker taking a few sentences out of context. This one comes from months of careful reporting by two separate teams, one at the Pulitzer Prize–winning website Inside Climate News, and the other at the Los Angeles Times (with an assist from the Columbia Journalism School). Following separate lines of evidence and document trails, they’ve reached the same bombshell conclusion: ExxonMobil, the world’s largest and most powerful oil company, knew everything there was to know about climate change by the mid-1980s, and then spent the next few decades systematically funding climate denial and lying about the state of the science.
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    Check out the links to the major article series for much more in-depth coverage.
Paul Merrell

Erdogan Government Arrests Turkish Generals for Stopping Syria-Bound Trucks "Filled Wit... - 0 views

  • Two Turkish generals and a colonel were detained on Saturday for intercepting Syria-bound trucks that belonged to Turkey’s National Intelligence Organization (MIT), the newspaper Today’s Zaman reported. In January 2014, Ankara Gendarmerie Major-General Ibrahim Aydin, former Adana Gendarmerie Brigadier-General Hamza Celepoglu and former Gendarmerie Criminal Laboratory Head Colonel Burhanettin Cihangiroglu stopped Syrian-bound trucks in southern Turkey after they received information from an anonymous source that the trucks were illegally carrying weapons to militants in Syria. When the information about the trucks became public, MIT officials and high-ranking Turkish politicians, including President Recep Teyyip Erdogan, who was Prime Minister back then, and Prime Minister Ahmet Davutoglu, then the country’s foreign minister, were furious that the gendarmes stopped the trucks and said the Syria-bound trucks were carrying “humanitarian aid” to Turkmen living just south of Turkey, the newspaper said: “Yes, I’m saying this without any hesitation. That aid was going to the Turkmens. There will be a war next door and we will watch our Turkmen, Arab and Turkish brothers being massacred,” Davutoglu said, as cited by Today’s Zaman.
  • However, members of opposition parties and some Turkish media said the trucks were indeed transporting weapons to Islamic extremists in Syria. The gendarmes involved in the interception confirmed that the Syria-bound trucks weren’t going to an area where the Turkmen lived, but to an area populated by radical groups, the Turkish newspaper said. When an investigation into the MIT case was launched, the ruling Justice and Development Party (AKP) called the probe as “treason and espionage” on the part of prosecutors.
  • New developments on the issue took place recently. Last Tuesday, Erdogan answered claims previously made by critics, who said the trucks were filled with weapons, by sarcastically asking them: “What if the MIT trucks were filled with weapons?” Then on Saturday, contrary to his earlier claims that the MIT trucks were carrying humanitarian aid to Turkmen, Erdogan said the trucks were actually heading on their way to help the Free Syrian Army (FSA). “They [the gendarmes who revealed the transfer] also exposed those going to the FSA in that way,” Erdogan said on Saturday while addressing his supporters in Balikesir, as cited by Today’s Zaman. Well, that’s getting pretty confusing — were the trucks delivering “humanitarian aid” to the Turkmen or the FSA then? Just make up your mind, Mr. Erdogan. Where the trucks were heading and what were they carrying after all? Meanwhile, some very high-ranking Turkish officials, including then-president Abdullah Gul, revealed that the Syria-bound trucks were a “state-secret,” leading to more speculations that the trucks were indeed filled with weapons. The recent developments are taking place in the wake of a major government crackdown on two Turkish journalists of the Cumhuriyet newspaper, Can Dunbar and Erdem Gul, who we arrested for covering a story and releasing pictures, claiming that Turkish trucks provided weapons to Syrian opposition rebels.
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  • The reason why the Turkish government arrested the journalists is because Erdogan and his ruling party don’t want reporters to write about certain things, such as the government’s support of Syrian rebels, corruption and other important things that people should actually know about, human rights activist Arzu Geybulla said. Following the arrest of the journalists, who covered Erdogan’s “tender” topic, it looks like the Turkish President is trying to eliminate everyone who’s willing to speak up or reveal the fact that the Turkish government was helping out Islamic extremists in Syria.
Paul Merrell

Facebook Now Warns Users of Government - Sponsored Hack | nsnbc international - 0 views

  • Facebook has added a new feature to warn users that there is a suspicion that their profile is under attack by a nation – state.
  • Alex Stamos, chief security officer at Facebook, posted a “notification for targeted attacks” that explains the social media site “will notify you if we believe your account has been targeted or compromised by an attacker suspected of working on behalf of a nation-state.” In order to secure a compromised account, Facebook has implemented the “additional warning … because these types of attacks tend to be more advanced and dangerous than others, and we strongly encourage affected people to take the actions necessary to secure all of their online accounts.”
  • And yet, Stamos cautions: “To protect the integrity of our methods and processes, we often won’t be able to explain how we attribute certain attacks to suspected attackers. That said, we plan to use this warning only in situations where the evidence strongly supports our conclusion.” To protect users, Facebook will turn on the “login approvals” feature. Facebook will send the compromised account user specific codes so that one particular user can access the profile from multiple locations: pc, app, or new device.
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    Not good enough. It's known from the Snowden documents that NSA gets total access to Facebook accounts under FISA court orders that prohibit it from warning its users.
Paul Merrell

Korematsu's Demise? | Just Security - 0 views

  • There’s a lot that’s remarkable about last Tuesday’s Third Circuit decision in Hassan v. City of New York, which Faiza Patel cogently summarized in her post last week. In a nutshell, Hassan involves a challenge to secret intelligence operations carried out by the New York Police Department (NYPD) over the years since September 11 that allegedly targets Muslim communities “based on the false and stigmatizing premise that Muslim religious identity ‘is a permissible proxy for criminality, and that Muslim individuals, businesses, and institutions can therefore be subject to pervasive surveillance not visited upon individuals, businesses, and institutions of any other religious faith or the public at large.'” The district court had tersely granted the City’s motion to dismiss both because it concluded the plaintiffs lacked standing and because, in the alternative, it held that the plaintiffs had failed to overcome the pleading burden articulated by the Supreme Court in Iqbal. But the Third Circuit reversed on both fronts, holding that the plaintiffs’ allegations, if true, were more than enough to establish both that they had suffered an injury in fact sufficient to satisfy Article III standing, and that their equal protection and First Amendment claims were sufficiently plausible to satisfy Iqbal. To be sure, the Third Circuit’s decision is interlocutory — coming at a very preliminary stage in the litigation. But what I want to suggest in the post that follows is that, as much as any other post-September 11 judicial decision, Hassan represents the full-throated repudiation of the Supreme Court’s infamous World War II-era ruling in Korematsu v. United States that has been so long in coming — and so thoroughly overdue.
  • As I’ve written about before, Korematsu reflects two separate — but equally important — constitutional failures. The first failure was the internment policy itself, which we now know (and which the US government knew at the time) to have been a completely unnecessary — if not hysterical — overreaction to hyperbolic and (after Midway, at least) categorically overstated fears of a Japanese invasion of the West Coast. By itself, the camps were a dark stain on the history of civil liberties in the United States — albeit one of many, alas. But the second failure was, historically, the far more significant and unique one — the Supreme Court’s conscious constitutional rationalization of the internment policy, based upon a combination of naïveté on the Justices’ part and the affirmatively misleading (if not downright disingenuous) briefing by the federal government. As Justice Robert H. Jackson understood — and forcefully articulated — in his Korematsu dissent, the real violence to the “rule of law” resulting from the camps was thus not the underlying policy, but rather its validation by the Supreme Court. In his words, “a military commander may overstep the bounds of constitutionality, and it is an incident. But if we review and approve, that passing incident becomes the doctrine of the Constitution.”
  • But we’ve struggled somewhat with the second constitutional failure. The courts have repudiated Korematsu’s conviction; the Office of the Solicitor General has confessed error for its role in perpetuating the government’s misleading case before the Supreme Court; and scholars have suggested that Korematsu itself has become part of the “anti-canon” — the class of Supreme Court decisions so reviled that they are cited, if at all, in support of the wrongness of their holdings. But Korematsu itself remains on the books, as do broader concerns that courts are still vulnerable to Korematsu — style reasoning, i.e., that the need to protect national security might provide legal justification for government conduct that would otherwise be unjustifiable. Indeed, one need look no further than the ongoing debate over the SSCI’s torture report for evidence of the Korematsu mentality being alive and well.
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  • That’s why I find the Third Circuit’s analysis in Hassan so significant — not because it allows this particular civil suit to go forward, but because it does so based upon an explicit (and conscious) rejection of Korematsu — style legal reasoning. As Judge Ambro explains, “No matter how tempting it might be to do otherwise, we must apply the same rigorous standards even where national security is at stake. We have learned from experience that it is often where the asserted interest appears most compelling that we must be most vigilant in protecting constitutional rights.” And applying the strict judicial scrutiny that is triggered by government action deemed to be intentionally discriminatory on the basis of religious affiliation, the court proceeds to hold that the NYPD lacked a sufficiently compelling justification for such discriminatory treatment, because even if abstract claims of security necessity could be a compelling government interest, the NYPD’s alleged policy was far too overbroad to survive the narrow tailoring required by strict scrutiny. Thus, quoting directly from Justice Jackson’s Korematsu dissent, Judge Ambro closed his opinion by noting that “Our job is judicial. We ‘can apply only law, and must abide by the Constitution, or [we] cease to be civil courts and become instruments of [police] policy.'”
  • Faiza’s post provides far more detail on the specifics of the Third Circuit’s analysis, and the opinion itself is worth a read. For present purposes, though, it’s this mentality that I find so refreshing — that even when the government invokes the specter of September 11 and the need to prevent future acts of terrorism, courts will not abdicate their responsibility to scrutinize the government’s justifications with care, and to be especially wary of overbroad government programs carried out under the broad guise of “necessity.” Hassan certainly isn’t the first example of this kind of principled judicial decisionmaking in a post-September 11 counterterrorism suit, but it is the one that, at least in my view, most directly confronts — and rejects — the kind of deferential judicial review that was responsible for the second constitutional failure in Korematsu, and all of the pain that followed.
Paul Merrell

Stories on Cubans in Syria Lack One Thing: Evidence of Cubans in Syria « LobeLog - 0 views

  • Fox News (10/14/15) reported last week that Cuba has sent Gen. Leopoldo Cintra Frias and hundreds of troops to Syria to assist the Russian and Assad governments in “operating Russian tanks.” This explosive claim was soon echoed by James Bloodworth in the Daily Beast (10/16/15) and subsequently spread widely on social media. A Cuban troop presence in Syria would be a blockbuster story indeed—undermining the easing of tensions between Cuba and the United States while serving as a huge embarrassment for the Obama administration, which has spent much political capital restoring relations with the socialist island nation. There’s only one problem: The story is looking increasingly bunk.
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    Looks like that report of Cuban troops in Syria fighting with the Assad government forces was false.
Paul Merrell

2015: The Year Police Killings In America Were Counted - 0 views

  • The Black Lives Matter movement that swept the country in 2015 has—among other accomplishments—forced global media outlets to afford victims of police killings the most basic acknowledgement: a public record of their names and deaths. Such a grim tally was maintained this year by both the Guardian and the Washington Post, following the consistent failure of the U.S. government to keep adequate records. According to the Guardian, 1,126 people were killed by police so far in 2015, averaging more than three a day, with 27 percent of those slain facing mental health issues. The numbers confirm the racial injustices highlighted by nationwide protests. Among black people in America, 6.9 per million were killed by police, compared to 2.86 white people per million. In other words, African-Americans were nearly 2.5 times as likely to be killed by police as their white counterparts. Native-Americans and Latinos were also disproportionately likely to have their lives taken by law enforcement, with 3.4 per million and 3.35 per million killed respectively.
  • The high number of killings was corroborated by the Washington Post, which only tracks fatal police shootings—not killings by taser, beating, and other forms of force, such as the high-profile death of African-American man Freddie Gray in Baltimore. The paper concluded, nonetheless, that nearly 1,000 civilians were shot and killed by police this year. What’s more, the Post‘s analysis found that the FBI, which is tasked with tracking such shootings, is dramatically undercounting killings because “fewer than half of the nation’s police departments report their incidents to the agency.” “The Post documented well more than twice as many fatal shootings this year as the average annual tally reported by the FBI over the past decade,” journalists Kimberly Kindy, Marc Fisher, Julie Tate, and Jennifer Jenkins reported this week.
  • But perhaps, more than anything, both databases show that heightened visibility, in itself, will not end police killings or bring justice to its victims.
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