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Paul Merrell

The Latest Rules on How Long NSA Can Keep Americans' Encrypted Data Look Too Familiar |... - 0 views

  • Does the National Security Agency (NSA) have the authority to collect and keep all encrypted Internet traffic for as long as is necessary to decrypt that traffic? That was a question first raised in June 2013, after the minimization procedures governing telephone and Internet records collected under Section 702 of the Foreign Intelligence Surveillance Act were disclosed by Edward Snowden. The issue quickly receded into the background, however, as the world struggled to keep up with the deluge of surveillance disclosures. The Intelligence Authorization Act of 2015, which passed Congress this last December, should bring the question back to the fore. It established retention guidelines for communications collected under Executive Order 12333 and included an exception that allows NSA to keep ‘incidentally’ collected encrypted communications for an indefinite period of time. This creates a massive loophole in the guidelines. NSA’s retention of encrypted communications deserves further consideration today, now that these retention guidelines have been written into law. It has become increasingly clear over the last year that surveillance reform will be driven by technological change—specifically by the growing use of encryption technologies. Therefore, any legislation touching on encryption should receive close scrutiny.
  • Section 309 of the intel authorization bill describes “procedures for the retention of incidentally acquired communications.” It establishes retention guidelines for surveillance programs that are “reasonably anticipated to result in the acquisition of [telephone or electronic communications] to or from a United States person.” Communications to or from a United States person are ‘incidentally’ collected because the U.S. person is not the actual target of the collection. Section 309 states that these incidentally collected communications must be deleted after five years unless they meet a number of exceptions. One of these exceptions is that “the communication is enciphered or reasonably believed to have a secret meaning.” This exception appears to be directly lifted from NSA’s minimization procedures for data collected under Section 702 of FISA, which were declassified in 2013. 
  • While Section 309 specifically applies to collection taking place under E.O. 12333, not FISA, several of the exceptions described in Section 309 closely match exceptions in the FISA minimization procedures. That includes the exception for “enciphered” communications. Those minimization procedures almost certainly served as a model for these retention guidelines and will likely shape how this new language is interpreted by the Executive Branch. Section 309 also asks the heads of each relevant member of the intelligence community to develop procedures to ensure compliance with new retention requirements. I expect those procedures to look a lot like the FISA minimization guidelines.
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  • This language is broad, circular, and technically incoherent, so it takes some effort to parse appropriately. When the minimization procedures were disclosed in 2013, this language was interpreted by outside commentators to mean that NSA may keep all encrypted data that has been incidentally collected under Section 702 for at least as long as is necessary to decrypt that data. Is this the correct interpretation? I think so. It is important to realize that the language above isn’t just broad. It seems purposefully broad. The part regarding relevance seems to mirror the rationale NSA has used to justify its bulk phone records collection program. Under that program, all phone records were relevant because some of those records could be valuable to terrorism investigations and (allegedly) it isn’t possible to collect only those valuable records. This is the “to find a needle a haystack, you first have to have the haystack” argument. The same argument could be applied to encrypted data and might be at play here.
  • This exception doesn’t just apply to encrypted data that might be relevant to a current foreign intelligence investigation. It also applies to cases in which the encrypted data is likely to become relevant to a future intelligence requirement. This is some remarkably generous language. It seems one could justify keeping any type of encrypted data under this exception. Upon close reading, it is difficult to avoid the conclusion that these procedures were written carefully to allow NSA to collect and keep a broad category of encrypted data under the rationale that this data might contain the communications of NSA targets and that it might be decrypted in the future. If NSA isn’t doing this today, then whoever wrote these minimization procedures wanted to at least ensure that NSA has the authority to do this tomorrow.
  • There are a few additional observations that are worth making regarding these nominally new retention guidelines and Section 702 collection. First, the concept of incidental collection as it has typically been used makes very little sense when applied to encrypted data. The way that NSA’s Section 702 upstream “about” collection is understood to work is that technology installed on the network does some sort of pattern match on Internet traffic; say that an NSA target uses example@gmail.com to communicate. NSA would then search content of emails for references to example@gmail.com. This could notionally result in a lot of incidental collection of U.S. persons’ communications whenever the email that references example@gmail.com is somehow mixed together with emails that have nothing to do with the target. This type of incidental collection isn’t possible when the data is encrypted because it won’t be possible to search and find example@gmail.com in the body of an email. Instead, example@gmail.com will have been turned into some alternative, indecipherable string of bits on the network. Incidental collection shouldn’t occur because the pattern match can’t occur in the first place. This demonstrates that, when communications are encrypted, it will be much harder for NSA to search Internet traffic for a unique ID associated with a specific target.
  • This lends further credence to the conclusion above: rather than doing targeted collection against specific individuals, NSA is collecting, or plans to collect, a broad class of data that is encrypted. For example, NSA might collect all PGP encrypted emails or all Tor traffic. In those cases, NSA could search Internet traffic for patterns associated with specific types of communications, rather than specific individuals’ communications. This would technically meet the definition of incidental collection because such activity would result in the collection of communications of U.S. persons who aren’t the actual targets of surveillance. Collection of all Tor traffic would entail a lot of this “incidental” collection because the communications of NSA targets would be mixed with the communications of a large number of non-target U.S. persons. However, this “incidental” collection is inconsistent with how the term is typically used, which is to refer to over-collection resulting from targeted surveillance programs. If NSA were collecting all Tor traffic, that activity wouldn’t actually be targeted, and so any resulting over-collection wouldn’t actually be incidental. Moreover, greater use of encryption by the general public would result in an ever-growing amount of this type of incidental collection.
  • This type of collection would also be inconsistent with representations of Section 702 upstream collection that have been made to the public and to Congress. Intelligence officials have repeatedly suggested that search terms used as part of this program have a high degree of specificity. They have also argued that the program is an example of targeted rather than bulk collection. ODNI General Counsel Robert Litt, in a March 2014 meeting before the Privacy and Civil Liberties Oversight Board, stated that “there is either a misconception or a mischaracterization commonly repeated that Section 702 is a form of bulk collection. It is not bulk collection. It is targeted collection based on selectors such as telephone numbers or email addresses where there’s reason to believe that the selector is relevant to a foreign intelligence purpose.” The collection of Internet traffic based on patterns associated with types of communications would be bulk collection; more akin to NSA’s collection of phone records en mass than it is to targeted collection focused on specific individuals. Moreover, this type of collection would certainly fall within the definition of bulk collection provided just last week by the National Academy of Sciences: “collection in which a significant portion of the retained data pertains to identifiers that are not targets at the time of collection.”
  • The Section 702 minimization procedures, which will serve as a template for any new retention guidelines established for E.O. 12333 collection, create a large loophole for encrypted communications. With everything from email to Internet browsing to real-time communications moving to encrypted formats, an ever-growing amount of Internet traffic will fall within this loophole.
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    Tucked into a budget authorization act in December without press notice. Section 309 (the Act is linked from the article) appears to be very broad authority for the NSA to intercept any form of telephone or other electronic information in bulk. There are far more exceptions from the five-year retention limitation than the encrypted information exception. When reading this, keep in mind that the U.S. intelligence community plays semantic games to obfuscate what it does. One of its word plays is that communications are not "collected" until an analyst looks at or listens to partiuclar data, even though the data will be searched to find information countless times before it becomes "collected." That searching was the major basis for a decision by the U.S. District Court in Washington, D.C. that bulk collection of telephone communications was unconstitutional: Under the Fourth Amendment, a "search" or "seizure" requiring a judicial warrant occurs no later than when the information is intercepted. That case is on appeal, has been briefed and argued, and a decision could come any time now. Similar cases are pending in two other courts of appeals. Also, an important definition from the new Intelligence Authorization Act: "(a) DEFINITIONS.-In this section: (1) COVERED COMMUNICATION.-The term ''covered communication'' means any nonpublic telephone or electronic communication acquired without the consent of a person who is a party to the communication, including communications in electronic storage."       
Paul Merrell

Obama Should Release Ukraine Evidence | Consortiumnews - 0 views

  • With the shoot-down of Malaysia Airlines Flight 17 over Ukraine turning a local civil war into a U.S. confrontation with Russia, U.S. intelligence veterans urge President Obama to release what evidence he has about the tragedy and silence the hyperbole. MEMORANDUM FOR: The President FROM: Veteran Intelligence Professionals for Sanity (VIPS) SUBJECT: Intelligence on Shoot-Down of Malaysian Plane Executive Summary
  • U.S.–Russian tensions are building in a precarious way over Ukraine, and we are far from certain that your advisers fully appreciate the danger of escalation. The New York Times and other media outlets are treating sensitive issues in dispute as flat-fact, taking their cue from U.S. government sources. Twelve days after the shoot-down of Malaysian Airlines Flight 17, your administration still has issued no coordinated intelligence assessment summarizing what evidence exists to determine who was responsible – much less to convincingly support repeated claims that the plane was downed by a Russian-supplied missile in the hands of Ukrainian separatists.
  • We, the undersigned former intelligence officers want to share with you our concern about the evidence adduced so far to blame Russia for the July 17 downing of Malaysian Airlines Flight 17. We are retired from government service and none of us is on the payroll of CNN, Fox News, or any other outlet. We intend this memorandum to provide a fresh, different perspective.
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  • As intelligence professionals we are embarrassed by the unprofessional use of partial intelligence information. As Americans, we find ourselves hoping that, if you indeed have more conclusive evidence, you will find a way to make it public without further delay. In charging Russia with being directly or indirectly responsible, Secretary of State John Kerry has been particularly definitive. Not so the evidence. His statements seem premature and bear earmarks of an attempt to “poison the jury pool.”
  • Regarding the Malaysia Airlines shoot-down of July 17, we believe Kerry has typically rushed to judgment and that his incredible record for credibility poses a huge disadvantage in the diplomatic and propaganda maneuvering vis-a-vis Russia. We suggest you call a halt to this misbegotten “public diplomacy” offensive. If, however, you decide to press on anyway, we suggest you try to find a less tarnished statesman or woman.
  • If the U.S. has more convincing evidence than what has so far been adduced concerning responsibility for shooting down Flight 17, we believe it would be best to find a way to make that intelligence public – even at the risk of compromising “sources and methods.” Moreover, we suggest you instruct your subordinates not to cheapen U.S. credibility by releasing key information via social media like Twitter and Facebook. The reputation of the messenger for credibility is also key in this area of “public diplomacy.” As is by now clear to you, in our view Secretary Kerry is more liability than asset in this regard. Similarly, with regard to Director of National Intelligence James Clapper, his March 12, 2013 Congressional testimony under oath to what he later admitted were “clearly erroneous” things regarding NSA collection should disqualify him. Clapper should be kept at far remove from the Flight 17 affair. What is needed, if you’ve got the goods, is an Interagency Intelligence Assessment – the genre used in the past to lay out the intelligence. We are hearing indirectly from some of our former colleagues that what Secretary Kerry is peddling does not square with the real intelligence. Such was the case late last August, when Kerry created a unique vehicle he called a “Government (not Intelligence) Assessment” blaming, with no verifiable evidence, Bashar al-Assad for the chemical attacks near Damascus, as honest intelligence analysts refused to go along and, instead, held their noses.
  • We believe you need to seek out honest intelligence analysts now and hear them out. Then, you may be persuaded to take steps to curb the risk that relations with Russia might escalate from “Cold War II” into an armed confrontation. In all candor, we see little reason to believe that Secretary Kerry and your other advisers appreciate the enormity of that danger. In our most recent (May 4) memorandum to you, Mr. President, we cautioned that if the U.S. wished “to stop a bloody civil war between east and west Ukraine and avert Russian military intervention in eastern Ukraine, you may be able to do so before the violence hurtles completely out of control.” On July 18, you joined the top leaders of Germany, France, and Russia in calling for an immediate ceasefire. Most informed observers believe you have it in your power to get Ukrainian leaders to agree. The longer Kiev continues its offensive against separatists in eastern Ukraine, the more such U.S. statements appear hypocritical. We reiterate our recommendations of May 4, that you remove the seeds of this confrontation by publicly disavowing any wish to incorporate Ukraine into NATO and that you make it clear that you are prepared to meet personally with Russian President Putin without delay to discuss ways to defuse the crisis and recognize the legitimate interests of the various parties. The suggestion of an early summit got extraordinary resonance in controlled and independent Russian media. Not so in “mainstream” media in the U.S. Nor did we hear back from you. The courtesy of a reply is requested.
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    Veteran Intelligence Professionals for Sanity (VIPS) savage thecredibility of John Kerry and James Clapper, saying that Kerry's claims of Russian responsibility for shooting down MH17 are at odds with what they are being told by intelligence analysts still working for the government, and challenge Obama to release any evidence he has to support Kerry's version of events. Reading the entire communique is highly recommended.
Paul Merrell

The Blood Sacrifice of Sergeant Bergdahl | Matthew Hoh - 0 views

  • Last week charges of Desertion and Misbehavior Before the Enemy were recommended against Sergeant Bowe Bergdahl. Tragically, Sergeant Bergdahl was once again crucified, without evidence or trial, throughout mainstream, alternative and social media. That same day Sergeant Bergdahl was offered as a sacrifice to primarily Republican politicians, bloggers, pundits, chicken hawks and jingoists, while Democrats mostly kept silent as Sergeant Bergdahl was paraded electronically and digitally in the latest Triumph of the Global War on Terror, President Ashraf Ghani was applauded, in person, by the American Congress. Such coincidences, whether they are arranged or accidental, often appear in literary or cinematic tales, but they do, occasionally, manifest themselves in real life, often appearing to juxtapose the virtues and vices of a society for the sake and advancement of political narratives. The problem with this specific coincidence for those on the Right, indulging in the fantasy of American military success abroad, as well as for those on the Left, desperate to prove that Democrats can be as tough as Republicans, is that reality may intrude. To the chagrin and consternation of many in DC, Sergeant Bergdahl may prove to be the selfless hero, while President Ghani may play the thief, and Sergeant Bergdahl's departure from his unit in Afghanistan may come to be understood as just and his time as a prisoner of war principled, while President Obama's continued propping up and bankrolling of the government in Kabul, at the expense of American servicemembers and taxpayers, comes to be fully acknowledged as immoral and profligate.
  • Buried in much of the media coverage this past week on the charges presented against Sergeant Bergdahl, with the exception of CNN, are details of the Army's investigation into Sergeant Bergdahl's disappearance, capture and captivity. As revealed by Sergeant Bergdahl's legal team, twenty-two Army investigators have constructed a report that details aspects of Sergeant Bergdahl's departure from his unit, his capture and his five years as a prisoner of war that disprove many of the malicious rumors and depictions of him and his conduct.
  • As documented in his lawyers' statement submitted to the Army on March 25, 2015, in response to Sergeant Bergdahl's referral to the Article 32 preliminary hearing (which is roughly the military equivalent of a civilian grand jury), the following facts are now known about Sergeant Bergdahl and his time prior to and during his captivity as a prisoner of war:• Sergeant Bergdahl is a "truthful person" who "did not act out of a bad motive"; • he did not have the intention to desert permanently nor did he have an intention to leave the Army when he left his unit's outpost in eastern Afghanistan in 2009; • he did not have the intention of joining the Taliban or assisting the enemy; • he left his post to report "disturbing circumstances to the attention of the nearest general officer". • while he was a prisoner of war for five years, he was tortured, but he did not cooperate with his captors. Rather, Sergeant Bergdahl attempted to escape twelve times, each time with the knowledge he would be tortured or killed if caught; • there is no evidence American soldiers died looking for Sergeant Bergdahl.
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  • Again, these are the findings of the Army's investigation into Sergeant Bergdahl's disappearance; they are not the apologies or fantasies of his legal team, Marines turned anti-war peaceniks like myself, or Obama fawning conspirators. The details behind these facts are contained in the Army's report, authored by Major General Kenneth Dahl, which has not been publically released, but hopefully will be made available to the public after Sergeant Bergdahl's preliminary hearing next month or, if the desertion and misbehavior charges are pursued, during his court martial. Just what events Sergeant Bergdahl witnessed that would compel him to risk his life, traveling unarmed through enemy controlled territory, to provide information to an American general, are not presently known. We do know that the unit Sergeant Bergdahl belonged to underwent serious disciplinary actions both before and after Sergeant Bergdahl's capture, that several of his unit's leaders were fired and replaced both prior to and subsequent to his capture, and, from communications between Sergeant Bergdahl and his family prior to his capture, Sergeant Bergdahl was sickened and distraught over the actions of his unit, including its possible complicity in the death of an Afghan child. It is quite possible Sergeant Bergdahl left his unit to report a war crime(s) or other serious crime(s) committed by American forces. He may have been trying to report a failure of his immediate leadership or it may have been something, in hindsight, that we would now consider trivial. Such an action on Sergeant Bergdahl's part would help to explain why his former platoon mates, quite possibly the very men whom Sergeant Bergdahl left to report on, have been so forceful in their condemnation of him, so determined not to forgive him for his disappearance, and so adamant in their denial to show compassion for his suffering while a prisoner of war.
  • This knowledge may explain why the Taliban believed Sergeant Bergdahl had fallen behind on a patrol rather than deserted. If he truly was deserting, than Sergeant Bergdahl most likely would have told the Taliban disparaging information about US forces in an attempt to harvest friendship and avoid torture, but if he was on a personal mission to report wrongdoing, than he certainly would not relate such information to the enemy. This may explain why Sergeant Bergdahl told his captors a lie rather than disclose his voluntary departure from the platoon outpost. This would also justify why Sergeant Bergdahl left his base without his weapon or equipment. Before his departure from his outpost, Sergeant Bergdahl asked his team leader what would happen if a soldier left the base, without permission, with his weapon and other issued gear. Sergeant Bergdahl's team leader replied that the soldier would get in trouble. Understanding Sergeant Bergdahl as not deserting, but trying to serve the Army by reporting wrongdoing to another base would explain why he chose not to carry his weapon and issued gear off of the outpost. Sergeant Bergdahl was not planning on deserting, i.e. quitting the army and the war, and he did not want to get in trouble for taking his weapon and issued gear with him on his unauthorized mission.
  • This possible exposure to senior leaders, and ultimately the media and American public, of civilian deaths or other offenses would also account for the non-disclosure agreement Sergeant Bergdahl's unit was forced to sign after his disappearance. Non-disclosure agreements may be common in the civilian world and do exist in military fields such as special operations and intelligence, but for regular infantry units they are rare. Sergeant Bergdahl's capture by the enemy, possibly while en-route to reveal war crimes or other wrongdoings, would certainly be the type of event an embarrassed chain of command would attempt to hide. Such a cover up would certainly not be unprecedented in American military history.Similar to the assertions made by many politicians, pundits and former soldiers that Sergeant Bergdahl deserted because, to paraphrase, he hated America and wanted to join the Taliban, the notion that he cooperated and assisted the Taliban while a prisoner of war has also been debunked by the Army's investigation. We know that Sergeant Bergdahl resisted his captors throughout his five years as a prisoner of war. His dozen escape attempts, with full knowledge of the risks involved in recapture, are in keeping with the Code of Conduct all American service members are required to abide by during captivity by the enemy.
  • In his own words, Sergeant Bergdahl's description of his treatment reveals a ghastly and barbaric five years of non-stop isolation, exposure, malnutrition, dehydration, and physical and psychological torture. Among other reasons, his survival must be attested to an unshakeable moral fortitude and inner strength. The same inherent qualities that led him to seek out an American general to report "disturbing circumstances" could well be the same mental, emotional and spiritual strengths that kept him alive through half a decade of brutal shackling, caging, and torture. It is my understanding the US military's prisoner of war and survival training instructors are studying Sergeant Bergdahl's experience in order to better train American service members to endure future experiences as prisoners of war. Susan Rice, President Obama's National Security Advisor, was roundly lampooned and criticized last year for stating that Sergeant Bergdahl "served with honor and distinction". It is only the most callous and politically craven among us who, now understanding the torture Sergeant Bergdahl endured, his resistance to the enemy that held him prisoner, and his adherence to the US military's Code of Conduct for five years in horrific conditions, would argue that he did not serve with honor and distinction.
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    There's more article than I highlighted and it's worth reading. Obama should step in here and issue a full pardon to end this young man's torment by Army generals playing to the press. Let's recall here that Obama, when asked to prosecute Bush II officials for war crimes, said he would rather look forward rather than backward. Sgt. Bergdahl, who committed no war crime, deserves no less. Five years of torture and malnutrition as a POW is more punishment than anyone deserves.
Paul Merrell

Restore Our Privacy Act - Newsroom: Bernie Sanders - U.S. Senator for Vermont - 0 views

  • Sen. Bernie Sanders introduced legislation late Thursday to put strict limits on sweeping powers used by the National Security Agency and Federal Bureau of Investigation to secretly track telephone calls by millions of innocent Americans who are not suspected of any wrongdoing. “We must give our intelligence and law enforcement agencies all of the tools that they need to combat terrorism but we must do so in a way that protects our freedom and respects the Constitution’s ban on unreasonable searches,” Sanders said.
  • The legislation filed late yesterday would put limits on records that may be searched. Authorities would be required to establish a reasonable suspicion, based on specific information, in order to secure court approval to monitor business records related to a specific terrorism suspect. Sanders’ bill would put an end to open-ended court orders that have resulted in wholesale data mining by the NSA and FBI. Instead, the government would be required to provide reasonable suspicion to justify searches for each record or document that it wants to examine.
  • The measure would eliminate a presumption in current law that anyone “known to” a suspect is relevant to the investigation. It also would increase congressional oversight by requiring the attorney general to provide reports to all members of Congress, not only members of the judiciary and intelligence committees. The legislation to amend a provision in the so-called USA Patriot Act was prompted by disclosures in The Guardian and The Washington Post that a massive surveillance program relied on an expansive interpretation of that law to justify what had been secret court orders authorizing wholesale surveillance of telephone and Internet records. Sanders voted against the law when it was first enacted in 2001 and when it was reauthorized in 2006 and 2011. To read the bill (S. 1168), click here.
Paul Merrell

Asia Times Online :: The Syria-Iran red line show - 0 views

  • The Nenets of Siberia - crossing the Ob river to enter the Arctic Circle - could teach a thing or two about real strategy to those limping armchair warriors in US Think Tankland. Even the Nenets would know that the current chemical weapons hysteria is a total fabrication by the CIA, MI6 and Israeli intelligence - corroborated by zero evidence. Still, the prevailing Washington "wisdom" is that a "red line" must be enforced over Syria so a "red line" must be enforced on Iran. The fact is that the al-Assad government initially accused the "rebels" of using chemical weapons - and asked the United Nations for an official investigation.
  • Even the New York Times was forced, grudgingly, to admit the "rebels" acknowledged an attack happened in territory controlled by the government, with 16 Syrian Army dead, plus 10 civilians and over a hundred injured. But then the "rebels" changed the narrative, blaming Damascus of bombing their own soldiers. It was Moscow that introduced a measure of reality, detailing how Washington was stalling the UN investigation. Our Nenets of Siberia would also know there's hardly anything secular leading the "rebels" in Syria; it's a motley crew of varying degrees of fanaticism. Once again, the Nenets would not need to freeze to death reading the New York Times to find out that the CIA is "secretly" funneling a free for all weaponizing to the "rebels" via Saudi Arabia and Qatar. Still the Obama administration peddles the fiction that Washington only supplies "non lethal" aid as Capitol Hill nutters keep insisting that Obama install a "no fly zone" over Syria - as in Libya-style NATO war remix.
  • Follow-on strike package, anyone? US Think Tankland nonetheless is ecstatic that the GCC petro-monarchies now have access to precision-guided munitions to "strike Iranian targets". But nothing compares to the cheerleading of Israel's new access to KC-135 aerial refueling tankers - or Stratotankers. Then there's the imminent transfer of anti-radiation missiles as well - advanced versions of the AGM-88 HARM missiles. These toys will "reduce the threat to Israel's follow-on strike package." No, this is not exactly about "US circumspection", or "US resolve in the campaign against Iranian nuclear weapons"; it's unqualified Dog of War barking.
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  • Meanwhile, that police state run by King Playstation, also known as Jordan, has opened its airspace to Israeli drones now engaged in "monitoring" Syria. As Asia Times Online has repeatedly warned, Obama in Syria is fast becoming a remix of Reagan in 1980s Afghanistan. We all know what came out of those "freedom fighters" afterwards. In this context, Robert Ford, Obama's alleged Syria expert, telling the Senate Foreign Relations Committee that it's important for Washington to "weigh in" to affect "the internal balance of power in Syria" qualifies as a joke line, not a red line.
Paul Merrell

N.S.A. Devises Radio Pathway Into Computers - NYTimes.com - 1 views

  • The National Security Agency has implanted software in nearly 100,000 computers around the world that allows the United States to conduct surveillance on those machines and can also create a digital highway for launching cyberattacks.While most of the software is inserted by gaining access to computer networks, the N.S.A. has increasingly made use of a secret technology that enables it to enter and alter data in computers even if they are not connected to the Internet, according to N.S.A. documents, computer experts and American officials.The technology, which the agency has used since at least 2008, relies on a covert channel of radio waves that can be transmitted from tiny circuit boards and USB cards inserted surreptitiously into the computers. In some cases, they are sent to a briefcase-size relay station that intelligence agencies can set up miles away from the target.
  • The radio frequency technology has helped solve one of the biggest problems facing American intelligence agencies for years: getting into computers that adversaries, and some American partners, have tried to make impervious to spying or cyberattack. In most cases, the radio frequency hardware must be physically inserted by a spy, a manufacturer or an unwitting user.
  • The N.S.A. and the Pentagon’s Cyber Command have implanted nearly 100,000 “computer network exploits” around the world, but the hardest problem is getting inside machines isolated from outside communications.
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  • the program, code-named Quantum, has also been successful in inserting software into Russian military networks and systems used by the Mexican police and drug cartels, trade institutions inside the European Union, and sometime partners against terrorism like Saudi Arabia, India and Pakistan, according to officials and an N.S.A. map that indicates sites of what the agency calls “computer network exploitation.”“What’s new here is the scale and the sophistication of the intelligence agency’s ability to get into computers and networks to which no one has ever had access before,” said James Andrew Lewis, the cybersecurity expert at the Center for Strategic and International Studies in Washington. “Some of these capabilities have been around for a while, but the combination of learning how to penetrate systems to insert software and learning how to do that using radio frequencies has given the U.S. a window it’s never had before.”
  • A program named Treasure Map tried to identify nearly every node and corner of the web, so that any computer or mobile device that touched it could be located.
  • Over the past two months, parts of the program have been disclosed in documents from the trove leaked by Edward J. Snowden, the former N.S.A. contractor. A Dutch newspaper published the map of areas where the United States has inserted spy software, sometimes in cooperation with local authorities, often covertly. Der Spiegel, a German newsmagazine, published the N.S.A.'s catalog of hardware products that can secretly transmit and receive digital signals from computers, a program called ANT. The New York Times withheld some of those details, at the request of American intelligence officials, when it reported, in the summer of 2012, on American cyberattacks on Iran.
  • A 2008 map, part of the Snowden trove, notes 20 programs to gain access to big fiber-optic cables — it calls them “covert, clandestine or cooperative large accesses” — not only in the United States but also in places like Hong Kong, Indonesia and the Middle East. The same map indicates that the United States had already conducted “more than 50,000 worldwide implants,” and a more recent budget document said that by the end of last year that figure would rise to about 85,000. A senior official, who spoke on the condition of anonymity, said the actual figure was most likely closer to 100,000.
  • The N.S.A.'s efforts to reach computers unconnected to a network have relied on a century-old technology updated for modern times: radio transmissions.In a catalog produced by the agency that was part of the Snowden documents released in Europe, there are page after page of devices using technology that would have brought a smile to Q, James Bond’s technology supplier.
  • One, called Cottonmouth I, looks like a normal USB plug but has a tiny transceiver buried in it. According to the catalog, it transmits information swept from the computer “through a covert channel” that allows “data infiltration and exfiltration.” Another variant of the technology involves tiny circuit boards that can be inserted in a laptop computer — either in the field or when they are shipped from manufacturers — so that the computer is broadcasting to the N.S.A. even while the computer’s user enjoys the false confidence that being walled off from the Internet constitutes real protection.The relay station it communicates with, called Nightstand, fits in an oversize briefcase, and the system can attack a computer “from as far away as eight miles under ideal environmental conditions.” It can also insert packets of data in milliseconds, meaning that a false message or piece of programming can outrace a real one to a target computer. Similar stations create a link between the target computers and the N.S.A., even if the machines are isolated from the Internet.
  • Computers are not the only targets. Dropoutjeep attacks iPhones. Other hardware and software are designed to infect large network servers, including those made by the Chinese.Most of those code names and products are now at least five years old, and they have been updated, some experts say, to make the United States less dependent on physically getting hardware into adversaries’ computer systems.
  • But the Stuxnet strike does not appear to be the last time the technology was used in Iran. In 2012, a unit of the Islamic Revolutionary Guards Corps moved a rock near the country’s underground Fordo nuclear enrichment plant. The rock exploded and spewed broken circuit boards that the Iranian news media described as “the remains of a device capable of intercepting data from computers at the plant.” The origins of that device have never been determined.
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    Even radio transceivers emplanted in USB jacks. So now to be truly secure, we need not only an air gap but also a Faraday cage protecting the air gap. 
Paul Merrell

U.S. Military and Intelligence Officials to Obama: "Assad NOT Responsible for Chemical ... - 1 views

  • MEMORANDUM FOR: The President FROM: Veteran Intelligence Professionals for Sanity (VIPS) SUBJECT: Is Syria a Trap? Precedence: IMMEDIATE We regret to inform you that some of our former co-workers are telling us, categorically, that contrary to the claims of your administration, the most reliable intelligence shows that Bashar al-Assad was NOT responsible for the chemical incident that killed and injured Syrian civilians on August 21, and that British intelligence officials also know this. In writing this brief report, we choose to assume that you have not been fully informed because your advisers decided to afford you the opportunity for what is commonly known as “plausible denial.” We have been down this road before – with President George W. Bush, to whom we addressed our first VIPS memorandumimmediately after Colin Powell’s Feb. 5, 2003 U.N. speech, in which he peddled fraudulent “intelligence” to support attacking Iraq. Then, also, we chose to give President Bush the benefit of the doubt, thinking he was being misled – or, at the least, very poorly advised.
  • The fraudulent nature of Powell’s speech was a no-brainer. And so, that very afternoon we strongly urged your predecessor to “widen the discussion beyond …  the circle of those advisers clearly bent on a war for which we see no compelling reason and from which we believe the unintended consequences are likely to be catastrophic.” We offer you the same advice today. Our sources confirm that a chemical incident of some sort did cause fatalities and injuries on August 21 in a suburb of Damascus. They insist, however, that the incident was not the result of an attack by the Syrian Army using military-grade chemical weapons from its arsenal. That is the most salient fact, according to CIA officers working on the Syria issue. They tell us that CIA Director John Brennan is perpetrating a pre-Iraq-War-type fraud on members of Congress, the media, the public – and perhaps even you. We have observed John Brennan closely over recent years and, sadly, we find what our former colleagues are now telling us easy to believe. Sadder still, this goes in spades for those of us who have worked with him personally; we give him zero credence. And that goes, as well, for his titular boss, Director of National Intelligence James Clapper, who has admitted he gave “clearly erroneous” sworn testimony to Congress denying NSA eavesdropping on Americans.
  • That Secretary of State John Kerry would invoke Clapper’s name this week in Congressional testimony, in an apparent attempt to enhance the credibility of the four-page “Government Assessment” strikes us as odd. The more so, since it was, for some unexplained reason, not Clapper but the White House that released the “assessment.” This is not a fine point. We know how these things are done. Although the “Government Assessment” is being sold to the media as an “intelligence summary,” it is a political, not an intelligence document. The drafters, massagers, and fixers avoided presenting essential detail. Moreover, they conceded upfront that, though they pinned “high confidence” on the assessment, it still fell “short of confirmation.”
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  • There is a growing body of evidence from numerous sources in the Middle East — mostly affiliated with the Syrian opposition and its supporters — providing a strong circumstantial case that the August 21 chemical incident was a pre-planned provocation by the Syrian opposition and its Saudi and Turkish supporters. The aim is reported to have been to create the kind of incident that would bring the United States into the war. According to some reports, canisters containing chemical agent were brought into a suburb of Damascus, where they were then opened. Some people in the immediate vicinity died; others were injured. We are unaware of any reliable evidence that a Syrian military rocket capable of carrying a chemical agent was fired into the area. In fact, we are aware of no reliable physical evidence to support the claim that this was a result of a strike by a Syrian military unit with expertise in chemical weapons. In addition, we have learned that on August 13-14, 2013, Western-sponsored opposition forces in Turkey started advance preparations for a major, irregular military surge. Initial meetings between senior opposition military commanders and Qatari, Turkish and U.S. intelligence officials took place at the converted Turkish military garrison in Antakya, Hatay Province, now used as the command center and headquarters of the Free Syrian Army (FSA) and their foreign sponsors.
  • Senior opposition commanders who came from Istanbul pre-briefed the regional commanders on an imminent escalation in the fighting due to “a war-changing development,” which, in turn, would lead to a U.S.-led bombing of Syria. At operations coordinating meetings at Antakya, attended by senior Turkish, Qatari and U.S. intelligence officials as well as senior commanders of the Syrian opposition, the Syrians were told that the bombing would start in a few days. Opposition leaders were ordered to prepare their forces quickly to exploit the U.S. bombing, march into Damascus, and remove the Bashar al-Assad government The Qatari and Turkish intelligence officials assured the Syrian regional commanders that they would be provided with plenty of weapons for the coming offensive. And they were. A weapons distribution operation unprecedented in scope began in all opposition camps on August 21-23. The weapons were distributed from storehouses controlled by Qatari and Turkish intelligence under the tight supervision of U.S. intelligence officers.
  • We hope your advisers have warned you that retaliation for attacks on Syrian are not a matter of IF, but rather WHERE and WHEN. Retaliation is inevitable. For example, terrorist strikes on U.S. embassies and other installations are likely to make what happened to the U.S. “Mission” in Benghazi on Sept. 11, 2012, look like a minor dust-up by comparison. One of us addressed this key consideration directly a week ago in an article titled “Possible Consequences of a U.S. Military Attack on Syria – Remembering the U.S. Marine Barracks Destruction in Beirut, 1983.”
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    This report by Veteran Intelligence Professionals for Sanity is almost certainly the most credible report contradicting the White House's "intelligence summary" that included zero evidence supporting the claim that Syrian government forces had unleashed the August 21, 2013 chemical attack in Ghoutu, near Damascus and less than five miles away from the just-arrived UN investigative team.  Spread it far and wide. 
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    Wow!! The cover-up of this false flag operation designed to get us into another civil war is incredible. Yet the truth continues to leak out. The ruling elites must be so pissed right now. The Internet is changing the world balance of power - in real time no less. And we are witness. Awesome stuff Paul.
Gary Edwards

"War is a Racket" by General Smedly Butler - 1 views

  • by MAJOR GENERAL SMEDLEY D. BUTLER, USMC - Retired TWO-TIME Congressional Medal of Honor Recipient FULL TEXT ON LINE FREE
  • GET THE NEW PAPERBACK EDITION including two bonus titles.
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    An accidental find, the full text online of USMC Maj. Gen. Smedley Butler's 1935 book, War Is a Racket. Butler served in the Marine Corps from 1899 to 1931 and at the time of his retirement was the most-decorated Marine in history, for both valor and accomplishments. Following his retirement, he became a vehement anti-war activist and public speaker.  This book is easily his most-cited and most-quoted published work. You can capture the flavor from an article he published in a magazine that included the following lines: "I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents." http://en.wikipedia.org/wiki/Smedley_Butler#Lectures  I look forward to reading this book. The book was reprinted in 2003 and is available from the linked web site, together with two bonus titles. 
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    "WAR IS A RACKET" - free online book CHAPTER ONE WAR is a racket. It always has been. It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives. A racket is best described, I believe, as something that is not what it seems to the majority of the people. Only a small "inside" group knows what it is about. It is conducted for the benefit of the very few, at the expense of the very many. Out of war a few people make huge fortunes. In the World War [I] a mere handful garnered the profits of the conflict. At least 21,000 new millionaires and billionaires were made in the United States during the World War. That many admitted their huge blood gains in their income tax returns. How many other war millionaires falsified their tax returns no one knows. How many of these war millionaires shouldered a rifle? How many of them dug a trench? How many of them knew what it meant to go hungry in a rat-infested dug-out? How many of them spent sleepless, frightened nights, ducking shells and shrapnel and machine gun bullets? How many of them parried a bayonet thrust of an enemy? How many of them were wounded or killed in battle? Out of war nations acquire additional territory, if they are victorious. They just take it. This newly acquired territory promptly is exploited by the few - the selfsame few who wrung dollars out of blood in the war. The general public shoulders the bill. And what is this bill? This bill renders a horrible accounting. Newly placed gravestones. Mangled bodies. Shattered minds. Broken hearts and homes. Economic instability. Depression and all its attendant miseries. Back-breaking taxation for generations and generations. For a great many years, as a soldier, I had a suspicion that war was a racket; not until I retired to civil life did I fully realize it. Now that I see the international war clouds g
Paul Merrell

Looting the Pension Funds: How Wall Street Robs Public Workers | Politics News | Rollin... - 0 views

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    The Rolling Stone's Matt Taibbi strikes again. 
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    Awesome article Paul. A must read for anyone trying to understand the 2008 financial collapse. The same Wall Street Banksters who collapsed the world economy are back at it. This time raiding the public workers pension funds, spending millions on politicians and press campaigns to blame cops, firefighters, and teachers for mounting municipal fiscal failures and the coming collapse. Blame anyone but these triple dipping Banksters and their political toadies. Excellent piece of writing too. Check out this opening excerpt introducing the five page story: "In the final months of 2011, almost two years before the city of Detroit would shock America by declaring bankruptcy in the face of what it claimed were insurmountable pension costs, the state of Rhode Island took bold action to avert what it called its own looming pension crisis. Led by its newly elected treasurer, Gina Raimondo - an ostentatiously ambitious 42-year-old Rhodes scholar and former venture capitalist - the state declared war on public pensions, ramming through an ingenious new law slashing benefits of state employees with a speed and ferocity seldom before seen by any local government. Detroit's Debt Crisis: Everything Must Go Called the Rhode Island Retirement Security Act of 2011, her plan would later be hailed as the most comprehensive pension reform ever implemented. The rap was so convincing at first that the overwhelmed local burghers of her little petri-dish state didn't even know how to react. "She's Yale, Harvard, Oxford - she worked on Wall Street," says Paul Doughty, the current president of the Providence firefighters union. "Nobody wanted to be the first to raise his hand and admit he didn't know what the fuck she was talking about." Soon she was being talked about as a probable candidate for Rhode Island's 2014 gubernatorial race. By 2013, Raimondo had raised more than $2 million, a staggering sum for a still-undeclared candidate in a thimble-size state. Donors from Wall Str
Paul Merrell

BP Settlement in Gulf Oil Spill Is Raised to $20.8 Billion - The New York Times - 0 views

  • The Justice Department on Monday announced a final settlement with the oil giant BP of $20.8 billion for its role in the disastrous 2010 Gulf of Mexico oil spill, raising the total from the initial $18.7 billion settlement announced in July.At either amount, it is the largest environmental settlement — and the largest civil settlement with any single entity — in the nation’s history.The United States attorney general, Loretta Lynch, called the filing of the final settlement “a major step forward in our effort to deliver justice to the gulf region in the wake of the Deepwater Horizon tragedy — the largest environmental disaster our nation has ever endured.”Gina McCarthy, the Environmental Protection Agency administrator, estimated that the final settlement represented a payment of $1,725 for each barrel of oil spilled in the disaster. The maximum amount that a judge could have assessed in the case was $4,300 a barrel.
  • The settlement resolves a 2010 lawsuit filed by the Justice Department against BP. It includes civil claims under the Clean Water Act, for which BP has agreed to pay a $5.5 billion penalty, the largest civil penalty in the history of environmental law. Also, it includes natural resources damages claims under the Oil Pollution Act, for which BP has agreed to pay $7.1 billion, on top of the $1 billion it previously committed to pay for early restoration work. Continue reading the main story Related in Opinion Editorial: BP Deal Will Lead to a Cleaner GulfJULY 8, 2015 In addition, the settlement includes economic damages claims, for which BP has agreed to pay $4.9 billion to the five gulf states — Alabama, Florida, Louisiana, Mississippi and Texas — and up to $1 billion to local governments. Louisiana, the hardest hit of the states, will receive $5 billion of the $8.8 billion allocated for restoration.Ms. Lynch said the increase in the total settlement represented a “refining of the numbers” over the initial settlement. “Over time, we refine numbers as the settlement is finalized,” she said.
  • Geoff Morrell, BP senior vice president for United States communications, said in a statement that the revised overall figure did not change the settlement announced in July, but included amounts previously spent or disclosed by the company. The settlement, he said, “resolves the largest litigation liabilities remaining from the tragic accident,” and provides the company “certainty with respect to its financial obligations.”Under the draft restoration plan, $8.8 billion would be allocated to restore the gulf ecosystem.
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  • A panel responsible for assessing the damages to the gulf ecosystems found effects on the region’s wildlife, including fish, oysters, plankton, birds and sea mammals; habitat, including marshes and beaches; and recreational activities.The proposed $8.8 billion in restoration would be invested across the five gulf states over 15 years, in a range of projects intended to restore those resources.“This restoration plan ensures that the funds will be distributed in ways that make sense,” Ms. McCarthy said.
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    Let's see. $20.8 billion total settlement. $8.8 billion going to environmental restoration. The Feds pocket $12 billion. And it's all pennies on the dollar in terms of ongoing damage.  The Feds, knowing that they can profit from environmental havoc committed by corporations, only paused deep ocean drilling permits for a few months, hoping for more damage to be caused by other companies.  The real scandal was and is that BP had a long and extremely well-documented history of causing environmental disasters in their pursuit of oil profits. Were there truly any environmental justice, the result would have been corporate capital punishment and virtually all of its executives in prison for the remainder of their lives, preferably at hard labor cleaning up the mess they created. But throw enough zeros after the settlement number and the human beings whose penny-pinching on safety caused the disaster walk free, free to do it all over again. They must have joined the same Too Big to Jail Golf Club that the banksters use.  
Paul Merrell

Boycott, Divest and Sanction Corporations That Feed on Prisons  :    Informat... - 0 views

  • All attempts to reform mass incarceration through the traditional mechanisms of electoral politics, the courts and state and federal legislatures are useless. Corporations, which have turned mass incarceration into a huge revenue stream and which have unchecked political and economic power, have no intention of diminishing their profits. And in a system where money has replaced the vote, where corporate lobbyists write legislation and the laws, where chronic unemployment and underemployment, along with inadequate public transportation, sever people in marginal communities from jobs, and where the courts are a wholly owned subsidiary of the corporate state, this demands a sustained, nationwide revolt. “Organizing boycotts, work stoppages inside prisons and the refusal by prisoners and their families to pay into the accounts of phone companies and commissary companies is the only weapon we have left,” said Amos Caley, who runs the Interfaith Prison Coalition, a group formed by prisoners, the formerly incarcerated, their families and religious leaders.
  • These boycotts, they said, will be directed against the private phone, money transfer and commissary companies, and against the dozens of corporations that exploit prison labor. The boycotts will target food and merchandise vendors, construction companies, laundry services, uniforms companies, prison equipment vendors, cafeteria services, manufacturers of pepper spray, body armor and the array of medieval instruments used for the physical control of prisoners, and a host of other contractors that profit from mass incarceration. The movement will also call on institutions, especially churches and universities, to divest from corporations that use prison labor. The campaign, led by the Interfaith Prison Coalition, will include a call to pay all prisoners at least the prevailing minimum wage of the state in which they are held. (New Jersey’s minimum wage is $8.38 an hour.) Wages inside prisons have remained stagnant and in real terms have declined over the past three decades. A prisoner in New Jersey makes, on average, $1.20 for eight hours of work, or about $28 a month. Those incarcerated in for-profit prisons earn as little as 17 cents an hour. Over a similar period, phone and commissary corporations have increased fees and charges often by more than 100 percent. There are nearly 40 states that allow private corporations to exploit prison labor. And prison administrators throughout the country are lobbying corporations that have sweatshops overseas, trying to lure them into the prisons with guarantees of even cheaper labor and a total absence of organizing or coordinated protest.
  • Corporations currently exploiting prison labor include Abbott Laboratories, AT&T, AutoZone, Bank of America, Bayer, Berkshire Hathaway, Cargill, Caterpillar, Chevron, the former Chrysler Group, Costco Wholesale, John Deere, Eddie Bauer, Eli Lilly, ExxonMobil, Fruit of the Loom, GEICO, GlaxoSmithKline, Glaxo Wellcome, Hoffmann-La Roche, International Paper, JanSport, Johnson & Johnson, Kmart, Koch Industries, Mary Kay, McDonald’s, Merck, Microsoft, Motorola, Nintendo, Pfizer, Procter & Gamble, Quaker Oats, Sarah Lee, Sears, Shell, Sprint, Starbucks, State Farm Insurance, United Airlines, UPS, Verizon, Victoria’s Secret, Wal-Mart and Wendy’s.
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  • “Prisoner telephone rates in New Jersey are some of the highest in the country,” Caley said. “Global Tel Link charges prisoners and their families $4.95 for a 15-minute phone call, which is about two and a half times the national average for local inmate calling services.”
  • Prison phone services are a $1.2-billion-a-year industry. Prisoners outside New Jersey are charged by Global Tel Link, which makes about $500 million a year, as much as $17 for a 15-minute phone call. A call of that duration outside a prison would cost about $2. If a customer deposits $25 into a Global Tel Link phone account, he or she must pay an additional service charge of $6.95. And Global Tel Link is only one of several large corporations that exploit prisoners and their families. JPay is a corporation that deals in privatized money transfers to prisoners. It controls money transfers for about 70 percent of the prison population. The company charges families that put money into prisoners’ accounts additional service fees of as much as 45 percent. JPay generates more than $50 million a year in revenue. The Keefer Group, which controls prison commissaries in more than 800 public and private prisons, and which often charges prisoners double what items cost outside prison walls, makes $41 million a year in profit.
  • Prisons, to swell corporate profits, force prisoners to pay for basic items including shoes. Prisoners in New Jersey pay $45 for a pair of basic Reebok shoes—almost twice the average monthly wage. If a prisoner needs an insulated undergarment or an extra blanket to ward off the cold at night he must buy it. Packages from home, once permitted, have been banned to force prisoners to buy grossly overpriced items at the commissary or company-run store. Some states have begun to charge prisoners rent. This gouging is burying many prisoners and their families in crippling debt, debt that prisoners carry when they are released from prison. The United States has 2.3 million people in prison, 25 percent of the world’s prison population, although we are only 5 percent of the world’s population. We have increased our prison population by about 700 percent since 1970. Corporations control about 18 percent of federal prisoners and 6.7 percent of all state prisoners. And corporate prisons account for nearly all newly built prisons. Nearly half of all immigrants detained by the federal government are shipped to corporate-run prisons. And slavery is legal in prisons under the 13th Amendment of the U.S. Constitution. It reads: “Neither slavery nor involuntary servitude, except as punishment for crime whereof the party shall have been duly convicted, shall exist within the United States.”
  • Vast sums are at stake. The for-profit prison industry is worth $70 billion. Corrections Corporation of America (CCA), the largest owner of for-profit prisons and immigration detention facilities in the country, had revenues of $1.7 billion in 2013 and profits of $300 million. CCA holds an average of 81,384 inmates in its facilities on any one day. Aramark Holdings Corp., a Philadelphia-based company that contracts through Aramark Correctional Services to provide food to 600 correctional institutions across the United States, was acquired in 2007 for $8.3 billion by investors that included Goldman Sachs. And, as in the wider society, while members of a tiny, oligarchic corporate elite each are paid tens or even hundreds of millions of dollars annually, the workers who generate these profits live in misery.  “It is an abomination that prisoners are paid 22 cents an hour, $1.20 cents a day,” Larry Hamm told the Newark meeting. “Every prisoner should get the minimum wage of New Jersey, $8.38 per hour.”
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    Why pay a liveable wage to American workers if you can get prison labor for less than market prices in Bangla Desh? The prison telephone racket has bothered me for many years. The FCC authorized no-limit telephone charges for prisoners and their families on the simplistic grounds of, "well, they prisoners who have reduced civil rights anyway. But it ignored that most prison phone calls are collect calls to families on the outside, who are not prisoners and still have their full civil rights. The for-profit prison industry is a prime example of not thinking things through before privatizing a formerly government function. Privatization creates a lobby for the industry, as Americans have learned all to well with the privatization of most Dept. of Defense work other than actual combat.   Already, for profit prison industries are showing up in state legislatures to demand longer prison sentences. They were the prime movers behind the "mandatory minimum sentence" movement, which has stuffed prisons to overflowing. 
Gary Edwards

Everyone is on the Gold Standard. It's not a choice any country or central bank can make. - 0 views

Dear WSJ Moderator, I tried to post a comment to the community forum for the article, "Currency Chaos; Where do we go from here?" My comments were rejected with the error message, "The language y...

gold gold-currency wsj robert-mundell milton-friedman fiat-currencies

started by Gary Edwards on 20 Oct 10 no follow-up yet
Gary Edwards

The Divider vs. the Thinker - WSJ.com - 0 views

  • There's a lot to rebel against, to want to throw off. If they want to make a serious economic and political critique, they should make the one Gretchen Morgenson and Joshua Rosner make in "Reckless Endangerment": that real elites in Washington rigged the system for themselves and their friends, became rich and powerful, caused the great catering, and then "slipped quietly from the scene."
  • It is a blow-by-blow recounting of how politicians—Democrats and Republicans—passed the laws that encouraged the banks to make the loans that would never be repaid, and that would result in your lost job.
  • It began in the early 1990s, in the Clinton administration, and continued under the Bush administration, with the help of an entrenched Congress that wanted only two things: to receive campaign contributions and to be re-elected.
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  • Specifically it is the story of Fannie Mae and Freddie Mac, the mortgage insurers, and how their politically connected CEOs, especially Fannie's Franklin Raines and James Johnson, took actions that tanked the American economy and walked away rich.
  • "the temptation to exploit fear and envy returns." Politicians divide in order to "evade responsibility for their failures" and to advance their interests.
  • "The American Idea"
  • Which gets us to Rep. Paul Ryan. Mr. Ryan receives much praise, but I don't think his role in the current moment has been fully recognized. He is doing something unique in national politics. He thinks. He studies. He reads. Then he comes forward to speak, calmly and at some length, about what he believes to be true. He defines a problem and offers solutions, often providing the intellectual and philosophical rationale behind them.
  • But Republicans, in their desire to defend free economic activity, shouldn't be snookered by unthinking fealty to big business. They should never defend—they should actively oppose—the kind of economic activity that has contributed so heavily to the crisis.
  • Here Mr. Ryan slammed "corporate welfare and crony capitalism."
  • "Why have we extended an endless supply of taxpayer credit to Fannie Mae and Freddie Mac, instead of demanding that their government guarantee be wound down and their taxpayer subsidies ended?" Why are tax dollars being wasted on bankrupt, politically connected solar energy firms like Solyndra? "Why is Washington wasting your money on entrenched agribusiness?"
  • The "true sources of inequity in this country," he continued, are "corporate welfare that enriches the powerful, and empty promises that betray the powerless."
  • The real class warfare that threatens us is "a class of bureaucrats and connected crony capitalists trying to rise above the rest of us, call the shots, rig the rules, and preserve their place atop society."
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    Peggy Noonan writes about Paul Ryan's "The American Idea" speech he recently gave at the heritage Foundation.  It's a beautifully written summary that goes right to the heart of the matter:  the ruling elites have been enriching themselves, feeding at the public trough of corporate welfare and crony capitalism.  Washington DC is corrupt and rotten to the core, and the hand maiden of Banksters, Global Corporatist, Big Unions, and Big Bearucracy.   One things for sure.  Congressman Paul Ryan is a brilliant thinker aho believes in the great promise he calls "The American Idea".   Funny how, as the presidential primary race rolls on, my hopeful attention is being drawn towards four men:  Herman Cain, Paul Ryan, Ron Paul and Marco Rubio.   Herman unfortunately is soft on Banksters, totally unaware and oblivious to the need to take back the currency, and end the Federal Reserve Bankster Cartel.  I also have some difficulties with the "revenue neutral" aspects of his 999 plan.  We need less government, not more.  The private sector needs to keep more money, not less.   Too bad because everything else about Herman excites me.  Especially his authentic, from the heart love of America, American exceptionalism and opportunity, and the founders truly unique "American Idea". Ron Paul has an awesome "American Recovery" plan.  Awesome.  But his remarks on terrorism and foreign policy stray far from his usual reliance on the Constitution and the 10th Amendment.   He's right about the connection between global corporatism and the never ending militarism they push.  But he's dead ass wrong about our enemies and their intentions.  And that's scary.  If RP had stuck to the Constitution and 10th Amendment, i would fully support him.   If it's not an enumerated power, it belongs to the States and individual citizens.  End of story.   Marco Rubio is awesome in the same way Herman is.  He connects with a special authenticity that screams the principles and val
Paul Merrell

CSIS asked foreign agencies to spy on Canadians, kept court in dark, judge says - 0 views

  • OTTAWA — Canada’s foremost jurist on national security law has slammed CSIS for deliberately keeping the Federal Court of Canada “in the dark” about outsourcing its spying on Canadians abroad to foreign agencies, according to a redacted version of a classified court decision made public Friday.In a thundering rebuke, Federal Court Judge Richard Mosley said the Canadian Security Intelligence Service (CSIS) purposely misled him when he granted it numerous warrants beginning in 2009 to intercept the electronic communications of unidentified Canadians abroad suspected as domestic security threats.“This was a breach of the duty of candour owed by the service and their legal advisers to the court,” Mosley said in his Further Reasons for Order.CSIS also mistakenly assigned powers to the warrants that the court never authorized and which do not exist in law, he said.“It is clear that the exercise of the court’s warrant issuing authority has been used as protective cover for activities that it has not authorized,” Mosley wrote.Furthermore, tasking foreign security intelligence services to spy on Canadians overseas “carries the risk of the detention of or other harm to a Canadian person based on that information.“Given the unfortunate history of information sharing with foreign agencies over the past decade and the reviews conducted by several royal commissions, there can be no question that the Canadian agencies are aware of those hazards. It appears to me that they are using the warrants as authorization to assume those risks.”
  • Legal observers say this case and Mosley’s scolding will harm CSIS’s credibility and raise questions about whether the service has broken Criminal Code provisions dealing with the invasion of privacy.“When a judge says the government breached its duty of candour that is a very big ‘ouch’ moment,” Craig Forcese, a national security law scholar at the University of Ottawa, wrote in a recent blog posting.At the time the first warrants were issued, CSIS told the court “on clearly stated grounds” that the electronic intercepts would be carried out from within Canada by the Communications Security Establishment Canada (CSEC), the country’s foreign signals intelligence spy service.CSIS is largely restricted to domestic spying operations. If an investigation involves the use of intrusive techniques, such as electronic intercepts, Section 21 of the CSIS Act requires it to obtain a warrant approved by a Federal Court judge to guard the Charter right to a reasonable expectation of privacy.CSEC, meanwhile, is not allowed to spy on Canadians anywhere unless it is to provide technical and operational assistance to federal law enforcement and security agencies such as CSIS.And the federal court only has jurisdiction to authorize warrants under the CSIS Act as long as the communications in question are intercepted within Canada.
  • Yet once the so-called 30-08 warrants were approved by the court, CSEC, on behalf of CSIS, turned around and handed the jobs to one or more of its partners in the “Five Eyes” intelligence-gathering alliance between Canada, the United States, Great Britain, Australia and New Zealand.Mosley found out about the situation late this summer and summoned CSIS, CSEC and government officials and lawyers to court to explain themselves. The public version of his reasons for order was released Friday.
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  • Some excerpts:• “I am satisfied that a decision was made by CSIS officials in consultation with their legal advisers to strategically omit information in applications for 30-08 warrants about their intention to seek the assistance of the foreign partners. As a result, the court was led to believe that all of the interception activity would take place in or under the control of Canada.”• “The principle of comity between nations that implies the acceptance of foreign laws and procedures when Canadian officials are operating abroad ends where clear violations of international law and human rights begin. In tasking the other members of the Five Eyes to intercept the communications of the Canadian targets, CSIS and CSEC officials knew ... this would involve the breach of international law by the requested second parties.”• “There is nothing in any of the material that I have read ... that persuades me that it was the intent of Parliament to give the service authority to engage the collection resources of the second party allies to intercept the private communications of Canadians.”• “It must be made clear, in any grant of a 30-08 warrant, that the warrant does not authorize the interception of the communications of a Canadian person by any foreign service on behalf of the service either directly or through the assistance of CSEC.”• “There must be no further suggestion in any reference to the use of second party assets by CSIS and CSEC, or their legal advisers, that it is being done under the authority of a (section) 21 warrant issued by this court.”
  • Forcese, meanwhile, raises some intriguing questions:• If Five Eyes assistance was not authorized, and CSEC and CSIS nevertheless sought it, are they still protected from Criminal Code, Part VI (invasion of privacy) culpability? Culpability, he writes, is only avoided where the intercept is lawfully authorized. If the parameters of the warrant were disregarded, does that vitiate the lawful access?• If CSEC and CSIS called on Five Eyes agencies to intercept communications, was the intercept still territorial, thus satisfying the international law concerns raised in the two warrant applications?“Outsourcing an international violation does not diminish state responsibility for that international violation. In a different context, that would be like asking bounty hunters to do your kidnapping of fugitives on the territory of a foreign state. Still a violation of international law.”CSIS has a choice, Forcese concludes: “Conduct extraterritorial spying without recourse to the courts, at risk of ultimately being called to account under domestic law, or honour the federal court’s construal of international law — and CSIS’s jurisdiction — and pull in its truly international surveillance operations, potentially blinding the country’s chief security intelligence agency.
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    Canadian Security Intelligence Service is in politically explosive deep doo-doo. 
Paul Merrell

History of the Federal Judiciary - 0 views

  •  Olmstead v. United States: The Constitutional Challenges of Prohibition Enforcement Historical Documents Dissenting opinion of Justice Louis D. Brandeis in Olmstead v. United States Justice Brandeis’s dissenting opinion is one of the more notable dissents in Supreme Court history. He attempted to define a general right of privacy based on the Fourth and Fifth Amendments. Brandeis had long been interested in the problem of privacy in the modern age; years earlier he and his law partner, Samuel Warren, published what many consider the seminal article on the topic (Samuel Warren & Louis D. Brandeis, “The Right to Privacy,” 4 Harv. L. Rev. 193 (1890)). Brandeis’s opinion in Olmstead attempted to apply to the current era what he said were the principles of the Fourth and Fifth Amendments. Historians often overlook how much his approach draws on the dissenting opinion of Judge Rudkin in the circuit court, but Brandeis himself acknowledged his debt to Rudkin in the text. The quotation about “the form that evil had theretofore taken” referred to the Supreme Court decision in Weems v. United States, in which Justice Joseph McKenna wrote of the need for the Court to apply the general principles of the Constitution to new problems.
  • Moreover, “in the application of a constitution, our contemplation cannot be only of what has been but of what may be.” The progress of science in furnishing the Government with means of espionage is not likely to stop with wire-tapping. Ways may someday be developed by which the Government, without removing papers from secret drawers, can reproduce them in court, and by which it will be enabled to expose to a jury the most intimate occurrences of the home. Advances in the psychic and related sciences may bring means of exploring unexpressed beliefs, thoughts and emotions. “That places the liberty of every man in the hands of every petty officer” was said by James Otis of much lesser intrusions than these. To Lord Camden, a far slighter intrusion seemed “subversive of all the comforts of society.” Can it be that the Constitution affords no protection against such invasions of individual security? . . .
  • In Ex parte Jackson, 96 U.S. 727, it was held that a sealed letter entrusted to the mail is protected by the Amendments. The mail is a public service furnished by the Government. The telephone is a public service furnished by its authority. There is, in essence, no difference between the sealed letter and the private telephone message. As Judge Rudkin said below: “True, the one is visible, the other invisible; the one is tangible, the other intangible; the one is sealed, and the other unsealed, but these are distinctions without a difference.” The evil incident to invasion of the privacy of the telephone is far greater than that involved in tampering with the mails. Whenever a telephone line is tapped, the privacy of the persons at both ends of the line is invaded and all conversations between them upon any subject, and, although proper, confidential and privileged, may be overheard. Moreover, the tapping of one man’s telephone line involves the tapping of the telephone of every other person whom he may call or who may call him. As a means of espionage, writs of assistance and general warrants are but puny instruments of tyranny and oppression when compared with wire-tapping.
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  • Time and again, this Court in giving effect to the principle underlying the Fourth Amendment, has refused to place an unduly literal construction upon it. This was notably illustrated in the Boyd case itself. Taking language in its ordinary meaning, there is no “search” or “seizure” when a defendant is required to produce a document in the orderly process of a court’s procedure. “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures,” would not be violated, under any ordinary construction of language, by compelling obedience to a subpoena. But this Court holds the evidence inadmissible simply because the information leading to the issue of the subpoena has been unlawfully secured. . . . The provision against self-incrimination in the Fifth Amendment has been given an equally broad construction. . . .
  • Decisions of this Court applying the principle of the Boyd case have settled these things. Unjustified search and seizure violates the Fourth Amendment, whatever the character of the paper; whether the paper when taken by the federal officers was in the home, in an office, or elsewhere; whether the taking was effected by force, by fraud, or in the orderly process of a court’s procedure. From these decisions, it follows necessarily that the Amendment is violated by the officer’s reading the paper without a physical seizure, without his even touching it; and that use, in any criminal proceeding, of the contents of the paper so examined—as where they are testified to by a federal officer who thus saw the document, or where, through knowledge so obtained, a copy has been procured elsewhere—any such use constitutes a violation of the Fifth Amendment. The protection guaranteed by the Amendments is much broader in scope. The makers of our Constitution undertook to secure conditions favorable to the pursuit of happiness. They recognized the significance of man’s spiritual nature, of his feelings, and of his intellect. They knew that only a part of the pain, pleasure and satisfactions of life are to be found in material things. They sought to protect Americans in their beliefs, their thoughts, their emotions and their sensations. They conferred, as against the Government, the right to be let alone—the most comprehensive of rights and the right most valued by civilized men. To protect that right, every unjustifiable intrusion by the Government upon the privacy of the individual, whatever the means employed, must be deemed a violation of the Fourth Amendment. And the use, as evidence in a criminal proceeding, of facts ascertained by such intrusion must be deemed a violation of the Fifth.
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    The linked opinion is Justice Brandeis' dissent in Olmstead v. U.S., the first Supreme Court decision to approve the use of secret wiretap evidence in a criminal proceeding, even though gathered without a search warrant. The warrant requirement would later be imposed in 1967 by the decision in Katz v. U.S., which established that the Fourth Amendment the privacy of people, not places, reviving the Brandeis dissent to a large degree. Since Katz and the advent of broad government surveillance, Justice Brandeis' dissent is gaining still more attention. 
Paul Merrell

The Vineyard of the Saker: The most pathetic case of backpedaling I have seen in my life - 0 views

  • Check out this story by AP and compare the lame, pathetic and self-evident nonsense of these so-called "intelligence officials" offer with the hard fact based presentation of the Russian Air Force Chief of Staff. Here is the full article with my comments in blue. WASHINGTON (AP) — Senior U.S. intelligence officials said Tuesday that Russia was responsible for "creating the conditions" that led to the shooting down of Malaysia Airlines Flight 17, but they offered no evidence of direct Russian government involvement. The intelligence officials were cautious in their assessment, noting that while the Russians have been arming separatists in eastern Ukraine, the U.S. had no direct evidence that the missile used to shoot down the passenger jet came from Russia. The officials briefed reporters Tuesday under ground rules that their names not be used in discussing intelligence related to last week's air disaster, which killed 298 people. The plane was likely shot down by an SA-11 surface-to-air missile fired by Russian-backed separatists in eastern Ukraine, the intelligence officials said, citing intercepts, satellite photos and social media postings by separatists, some of which have been authenticated by U.S. experts. But the officials said they did not know who fired the missile or whether any Russian operatives were present at the missile launch. They were not certain that the missile crew was trained in Russia, although they described a stepped-up campaign in recent weeks by Russia to arm and train the rebels, which they say has continued even after the downing of the commercial jetliner.
  • In terms of who fired the missile, "we don't know a name, we don't know a rank and we're not even 100 percent sure of a nationality," one official said, adding at another point, "There is not going to be a Perry Mason moment here." White House deputy national security adviser Ben Rhodes said the U.S. was still working to determine whether the missile launch had a "direct link" to Russia, including whether there were Russians on the ground during the attack and the degree to which Russians may have trained the separatists to launch such a strike. "We do think President Putin and the Russian government bears responsibility for the support they provided to these separatists, the arms they provided to these separatists, the training they provided as well and the general unstable environment in eastern Ukraine," Rhodes said in an interview with CNN. He added that heavy weaponry continues to flow into Ukraine from Russia following the downing of the plane. The intelligence officials said the most likely explanation for the downing was that the rebels made a mistake. Separatists previously had shot down 12 Ukrainian military airplanes, the officials said.
  • The officials made clear they were relying in part on social media postings and videos made public in recent days by the Ukrainian government, even though they have not been able to authenticate all of it. For example, they cited a video of a missile launcher said to have been crossing the Russian border after the launch, appearing to be missing a missile. But later, under questioning, the officials acknowledged they had not yet verified that the video was exactly what it purported to be. Despite the fuzziness of some details, however, the intelligence officials said the case that the separatists were responsible for shooting down the plane was solid. Other scenarios — such as that the Ukrainian military shot down the plane — are implausible, they said. No Ukrainian surface-to-air missile system was in range. (That is a lie as proven by the Russian satellite imagery and signal intercepts which prove that they Ukies had plenty of batteries freshly brought right next to the combat zone even though the Novorissians had just one Su-25 close air support aircraft in their entire inventory) From satellites, sensors and other intelligence gathering, officials said, they know where the missile originated — in separatist-held territory — and what its flight path was. But if they possess satellite or other imagery of the missile being fired, they did not release it Tuesday. A graphic they made public depicts their estimation of the missile's flight path with a green line. The jet's flight path was available from air traffic control data.
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  • In the weeks before the plane was shot down, Russia had stepped up its arming and training of the separatists after the Ukrainian government won a string of battlefield victories. The working theory is that the SA-11 missile came from Russia, although the U.S. doesn't have proof of that, the officials said. U.S. Ambassador to the U.N. Samantha Power said last week that "because of the technical complexity of the SA-11, it is unlikely that the separatists could effectively operate the system without assistance from knowledgeable personnel. Thus, we cannot rule out technical assistance from Russian personnel in operating the systems," she said. Asked about evidence, one of the senior U.S. intelligence officials said it was conceivable that Russian paramilitary troops are operating in eastern Ukraine, but that there was no direct link from them to the missile launch. Asked why civilian airline companies were not warned about a possible threat, the officials said they did not know the rebels possessed SA-11 missiles until after the Malaysian airliner was shot down. (WHAT?  Even I new this, just by reading the reports about the seized Buks, reports which even included photos.  They are really insulting our collective intelligence again!) 
  • ave you counted the "caveat words"?  I counted fifteen (depending on what you want to include).  Notice that they consider the Ukie missile as "implausible" but that they never explain why this would be implausible.  And they admit relying in part on social media and Ukie government info?  How absolutely utterly pathetic.  I mean - I feel sorry for them.  For any self-respecting intelligence official to admit such things is to commit a seppuku of your professional pride.  It's admitting that you are an amateur and a drooling moron.  And here is the deal - I very much doubt that these men are amateurs or morons.  So, yet again, they were back-stabbed by imbecile politicians like Obama and Power who just are not used to consulting with their own specialist before flapping their lips and nevermind if they make an entire intelligence community look like cretins.
  • I can barely imaging how much the US intelligence community must *hate* this administration.  Can you imagine what it must be to be a highly experienced US State Department or DIA career officer and listen to how the Russians constantly berate the US government for being "un-professional" and "amateurish" only to then hear that kind of absolute utter nonsense spoken in your name. Look, in this game I am 100% on Russia's side, but part of me, on a (ex-) professional level if you want,  feels the pain that I am sure many career intelligence officers feel today in the USA and they have my sincere sympathy.  I met enough of them to know that they are not the idiots that this Administration makes them out to be. But of course the big news here is this: the US fairy tale about Putin the terrorist is falling down in flames.  Yet again the Neocons by their sheer arrogance, hubris and boundless stupidity manged to lie their way into a corner from which there is no exit.  Not that the US had much street-cred anyway, not after Colin Powell's dishwasher powder in a vial at the UNSC.  But, of course, there is bad, very bad, even worse and outright terrible.  But now the US has reached the "terminal" stage. The AngloZionists sure had this one coming.
Paul Merrell

US Operating on Both Sides of Syrian-Iraqi Border - Providing Cover for Terrorists in S... - 0 views

  • US may attempt to arm and provide air cover for terrorists in Syria after claiming success in fighting ISIS in Iraq using Kurds.
  • To further justify expanding across the border and into Syria already ongoing US military operations in Iraq, the Western media has begun claiming that ISIS leadership, “fearing” US airstrikes, are fleeing to safety in neighboring Syria. The Wall Street Journal in its article, “Iraqis Say Some Commanders of Insurgency in Iraq Retreat to Syria,” claimed: According to the Iraqis, the commanders went to eastern Syria, where Islamic State has built an operational base amid the chaos of civil war over the past few years. The insurgents are able to dash across the border into Syria, where that base continues to offer the space to recruit and reorganize largely unchallenged. “They’ve got much better cover in Syria than they do in Iraq,” said Will McCants, an expert on militant Islam at the Brookings Institution and a former State Department adviser. “When they have that kind of strategic depth, they’re just allowed to live another day.”
  • Image: Clearly, ISIS’ path into Iraq began not in Syria, but in NATO member Turkey’s territory. ISIS is nothing more than an extension of the US-backed terrorist forces assembled for the explicit purpose of overthrowing the Syrian government. 
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  • Clearly, the answer, left for readers to arrive at on their own, is that these “successful” US airstrikes in Iraq must be carried over into Syria – where mission creep can do the rest, finally dislodging the Syrian government from power after an ongoing proxy war has failed to do so since 2011. After arming and aiding the Kurds in fighting ISIS in Iraq, the US will attempt to make a similar argument regarding the arming of terrorists in Syria and providing them direct US air support to defeat ISIS – and of course – Damascus. It should be remembered that ISIS itself is a creation of the United States, Saudi Arabia, Israel, Qatar, and has been harbored and provided material assistance by NATO-member Turkey for years. Portrayed by various names by the Western media – ISIS, al-Nusra, the “Free Syrian Army” – in reality it is a conglomerate of Western-backed mercenary forces raised as early as 2007 to overthrow the government in Damascus  and confront Iranian influence across the entire region, including in Lebanon and in Iraq.
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    Cartalucci is on a roll. The false flag sarin gas attack in Ghouta, Syria, didn't work because John Kerry stuck his foot in his mouth about Syria getting rid of all his chemical warfare agents and Russian Foreign Minister Lavrov and Syrian President Assad offered to do just that. Trapped by Kerry's loose lips, Obama had to call off the U.S. missile strikes and bombing on Syria to rescue the miniscule "Free Syrian Army," Al Nusrah, and other jihadi mercenaries being paid for by the House of Saud and Qattar, So the Syrian government forces got to keep the mercenaries on the run. Flip to plan B: a new excuse for U.S. war against Syria. ISIL is created, including a cover story that it got its hundreds of millions of dollars by robbing banks. Then, it's arranged for the commanders of four Iraq Army divisions to depart when only 1,000 or so ISIL troops attacked Mosul. Left without commanders and softened up by massive psychological warfare operations broadcasting how ISIL was beheading Iraqi troops that they caught, and the four divisions of troops fled south, leaving even their heavy weapons behind.   Out of nowhere, a new Islamic menace is manufactured, spanning about a third each of Syria and Iraq. But Barack Obama to the rescue with the combined  propaganda power of the War Party and Israel Lobby, the U.S. bombers and drones are sent in on their humanitarian mission to rescue about 40,000 Yahidzi (sp?) trapped by ISIL (now the Islamic Caliphate) on a mountaintop.   Then the U.S. expands its bombing to win back the Mosul Dam because it's such a threat to the U.S. Embassy in Baghdad if the dam breaks. Terrorized by the U.S. bombing, ISIL commanders are now said by the NYT and Wall St. J. to be retreating into Syria. Voila! Now the U.S. can send bombs and missiles to Syria ostensibly to kill ISIL leadership and troops, but in reality to bomb the heck out of the Syrian government forces. The road to Tehran still runs through Damascus, as a neocon would say.
Paul Merrell

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

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

What's the big deal between Russia and the Saudis? - RT Op-Edge - 0 views

  • Amidst the wilderness of mirrors surrounding the Syrian tragedy, a diamond-shaped fact persists: Despite so many degrees of separation, the Saudis are still talking to the Russians. Why? A key reason is because a perennially paranoid House of Saud feels betrayed by their American protectors who, under the Obama administration, seem to have given up on isolating Iran.
  • From the House of Saud’s point of view, three factors are paramount. 1) A general sense of ‘red alert’ as they have been deprived from an exclusive relationship with Washington, thus becoming incapable of shaping US foreign policy in the Middle East; 2) They have been mightily impressed by Moscow’s swift counter-terrorism operation in Syria; 3) They fear like the plague the current Russia-Iran alliance if they have no means of influencing it.
  • That explains why King Salman’s advisers have pressed the point that the House of Saud has a much better chance of checking Iran on all matters - from “Syraq” to Yemen - if it forges a closer relationship with Moscow. In fact, King Salman may be visiting Putin before the end of the year.
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  • One of the untold stories of the recent Syria-driven diplomatic flurry is how Moscow has been silently working on mollifying both Saudi Arabia and Turkey behind the scenes. That was already the case when the foreign ministers of US, Russia, Turkey and Saudi Arabia met before Vienna.Vienna was crucial not only because Iran was on the table for the first time but also because of the presence of Egypt – incidentally, fresh from recent discovery of new oil reserves, and engaging in a reinforced relationship with Russia.The absolute key point was this paragraph included in Vienna’s final declaration: “This political process will be Syrian-led and Syrian-owned, and the Syrian people will decide the future of Syria.”It’s not by accident that only Russian and Iranian media chose to give the paragraph the appropriate relevance. Because this meant the actual death of the regime change obsession, much to the distress of US neocons, Erdogan and the House of Saud.
  • The main point is the death of the regime change option, brought about by Moscow. And that leaves Putin free to further project his extremely elaborate strategy. He called Erdogan on Wednesday to congratulate him on his and the AKP’s election landslide. This means that now Moscow clearly has someone to talk to in Ankara. Not only about Syria. But also about gas.Putin and Erdogan will have a crucial energy-related meeting at the G20 summit on November 15 in Turkey; and there’s an upcoming visit by Erdogan to Moscow. Bets are on that the Turk Stream agreement will be – finally – reached before the end of the year. And on northern Syria, Erdogan has been forced to admit by Russian facts on the ground and skies that his no-fly zone scheme will never fly.
  • That leaves us with the much larger problem: the House of Saud.There’s a wall of silence surrounding the number one reason for Saudi Arabia to bomb and invade Yemen, and that is to exploit Yemen’s virgin oil lands, side by side with Israel – no less. Not to mention the strategic foolishness of picking a fight with redoubtable warriors such as the Houthis, which have sowed panic amidst the pathetic, mercenary-crammed Saudi army.Riyadh, following its American reflexes, even resorted to recruiting Academi – formerly Blackwater - to round up the usual mercenary suspects as far away as Colombia.It was also suspected from the beginning, but now it's a done deal that the responsible actor for the costly Yemen military disaster is none other than Prince Mohammad bin Salman, the King’s son who, crucially, was sent by his father to meet Putin face-to-face.
  • Meanwhile, Qatar will keep crying because it was counting on Syria as a destination point for its much-coveted gas pipeline to serve European customers, or at least as a key transit hub on the way to Turkey.Iran on the other hand needed both Iraq and Syria for the rival Iran-Iraq-Syria gas pipeline because Tehran could not rely on Ankara while it was under US sanctions (this will now change, fast). The point is Iranian gas won’t replace Gazprom as a major source for the EU anytime soon. If it ever did, or course, that would be a savage blow to Russia.
  • In oil terms, Russia and the Saudis are natural allies. Saudi Arabia cannot export natural gas; Qatar can. To get their finances in order – after all even the IMF knows they are on a highway to hell - the Saudis would have to cut back around ten percent of production with OPEC, in concert with Russia; the oil price would more than double. A 10 percent cutback would make a fortune for the House of Saud.So for both Moscow and Riyadh, a deal on the oil price, to be eventually pushed towards $100 a barrel, would make total economic sense. Arguably, in both cases, it might even mean a matter of national security.But it won’t be easy. OPEC’s latest report assumes a basket of crude oil to be quoted at only $55 in 2015, and to rise by $5 a year reaching $80 only by 2020. This state of affairs does not suit either Moscow or Riyadh.
  • Meanwhile, fomenting all sorts of wild speculation, ISIS/ISIL/Daesh still manages to collect as much as $50 million a month from selling crude from oilfields it controls across “Syraq”, according to the best Iraq-based estimates.The fact that this mini-oil caliphate is able to bring in equipment and technical experts from “abroad” to keep its energy sector running beggars belief. “Abroad” in this context means essentially Turkey – engineers plus equipment for extraction, refinement, transport and energy production.One of the reasons this is happening is that the US-led Coalition of the Dodgy Opportunists (CDO) – which includes Saudi Arabia and Turkey - is actually bombing the Syrian state energy infrastructure, not the mini oil-Caliphate domains. So we have the proverbial “international actors” in the region de facto aiding ISIS/ISIL/Daesh to sell crude to smugglers for as low as $10 a barrel.Saudis – as much as Russian intel - have noted how ISIS/ISIL/Daesh is able to take over the most advanced US equipment that takes months to master, and instead integrate it into their ops at once. This implies they must have been extensively trained. The Pentagon, meanwhile, sent and will be sending top military across “Syraq” with an overarching message: if you choose Russia we won’t help you.ISIS/ISIL/Daesh, for their part, never talks about freeing Jerusalem. It’s always about Mecca and Medina.
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    Pepe Escobar brings us up to speed on big changes in the Mideast, including the decline of U.S. influence. Not mentioned, but the Saudis' feelings of desertion by the Washington Beltway and its foreplay with Russia could bring about an end to the Saudis insistence on being paid for oil in U.S. dollars, and there goes the western economy. 
Paul Merrell

The Paris Terrorist Attacks. Passports Revisited | Global Research - Centre for Researc... - 0 views

  • Using doublespeak – supporting an organization while pointing at it as the enemy and calling terrorists people who were previously hailed as ‘freedom fighters’, is not some prerogative of the French government. Producing one’s own enemy has become a pivotal process in Western strategy, one that comforts an imperial structure in which there is no separation any more between inside and outside, between law and sheer violence, between citizens and enemies. In Belgium the muslim preacher Jean-Louis Denis is tried in court for having promoted the jihad in Syria among young people because he is suspected of being acquainted with Sharia4Belgium, a group that is labelled as terrorist. His lawyer exposed the equivocation in the prosecution when he reminds the court that kids were indeed sent to fight for the Islamic State in Syria but by the Belgian intelligence service. He was referring to the part played by an undercover agent of the Belgian federal police. The signifier’s comeback It seems that in Paris too a major concern for the terrorists was to make it easy for them to be identified. Yet this paradox is no longer really a surprise. The miraculous find of ID papers has now become a classic feature in such circumstances. It is a recurring event, a repetitive compulsion that points again and again at people who belong to some jihadist movement. In the official version for 9/11 the FBI claimed that they found the unscathed passport of one of the pilots near one of the towers that were reduced to ashes by explosions whose heat melted even the steel columns in the buildings’ structure. The fourth plane’s crash near Shanksville also yielded a passport which, though scorched, still made it possible to read the person’s first name and surname and to see his ID photo. This is all the more disturbing as nothing at all was left in the crater, no part of the plane or of the people travelling in it, only this partly scorched passport.
  • In the case of the attack at Charlie Hebdo, investigators found the ID papers of the elder Kouachi brothers in a car they had abandoned in the north-east of Paris. This document allows them to conclude that the authors of the attack were known to the anti-terror department as ‘pioneers of the French Jihad.’ The ‘hunt’ could begin. How can killers who operate with such professional skill make such blunder? It is an elementary caution known to any burglar that you do not to take ID papers along. Since 9/11 unlikelihood has become part of our lives. It has become the basis on which  truth is assessed. Reason is banished. We must not believe what is said but the speaking voice, whatever nonsense it may utter. The more patently absurd, the more unwavering our belief in what is stated must be. Unlikelihood has turned into the measure of truth.
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    I had already picked up on this trend: "terrorists" skillfully planting their IDs where they would be found to aid ensuing investigations. Shouldn't we insist on a higher standard for propagandists, perhaps an anti-plagiarism provision?
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