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Does the NSA really operate a vast database that allows its analysts to sift through millions of records showing nearly everything a user does on the Internet, as was recently reported? Yes, and people should stop worrying and learn to love it, according former NSA chief Gen. Michael Hayden. Last week, the Guardian published a series of leaked documents revealing new details about an NSA surveillance program called XKEYSCORE. The newspaper said that the program enabled the agency to “search with no prior authorization through vast databases containing emails, online chats and the browsing histories of millions of individuals,” and secret slides dated 2008 showed how people could be deemed a target for searching the Web for “suspicious stuff” or by using encryption. Following the disclosures, Hayden appeared on CNN to discuss the agency’s surveillance programs. The general, who directed the NSA from 1999 through 2005, was remarkably candid in his responses to Erin Burnett’s questions about the Guardian’s XKEYSCORE report. Was there any truth to claims that the NSA is sifting through millions of browsing histories and able to collect virtually everything users do on the Internet? “Yeah,” Hayden said. “And it's really good news.”

Not only that, Hayden went further. He revealed that the XKEYSCORE was “a tool that's been developed over the years, and lord knows we were trying to develop similar tools when I was at the National Security Agency.” The XKEYSCORE system, Hayden said, allows analysts to enter a “straight-forward question” into a computer and sift through the “oceans of data” that have been collected as part of foreign intelligence gathering efforts. How this process works was illustrated in the Guardian’s report. Analysts can enter search terms to sift through data and select from a drop-down menu a target’s “foreignness factor,” which is intended to minimize the warrantless surveillance of Americans. However, operating a vast electronic dragnet such as this is far from an exact science, and the NSA’s system of sifting data from the backbone of international Internet networks likely sometimes involves gobbling up information on Americans’ communications and online activity—whether it is done wittingly or not. Indeed, the NSA reportedly only needs to have 51 percent certainty that it is targeting a foreigner. And as leaked secret rules for the surveillance have shown, even if the NSA does “inadvertently” gather Americans’ communications, it can hold on to them if they are deemed valuable for vague “foreign intelligence” purposes or if the communications show evidence of a crime that has occurred or may occur in the future.

In the CNN interview, Hayden described XKEYSCORE as “really quite an achievement” and said that it enabled NSA spies to find the needle in the haystack. But his ardent defense of the system is unlikely to reassure civil liberties advocates. Having Hayden’s support is a rather dubious stamp of approval, particularly because he was responsible for leading the NSA’s illegal warrantless wiretapping program, which was initiated post-9/11 and exposed by the New York Times in 2005. Hayden later went on to lead the CIA from 2006 through 2009, where he oversaw the use of the waterboarding torture technique and the operation of a controversial black-site prison program that was eventually dismantled by President Obama. The former NSA chief retired in 2009, but he has since become a regular media commentator, using a recent column at CNN to blast Snowden for leaking the secret NSA documents and implying that he’d like to see the Guardian journalist Glenn Greenwald prosecuted as a “co-conspirator” for his role reporting the surveillance scoops.

The White House and leading lawmakers have rejected Edward Snowden's plea for clemency and said he should return to the United States to face trial.Dan Pfeiffer, an Obama administration adviser, said on Sunday the NSA whistleblower's request was not under consideration and that he should face criminal charges for leaking classified information. Dianne Feinstein and Mike Rogers, respectively the heads of the Senate and House intelligence committees, maintained the same tough line and accused Snowden of damaging US interests.The former NSA employee this week appealed for clemency and an opportunity to address members of Congress about US surveillance. He also asked for international help to lobby the US to drop the charges against him. The White House, stung by domestic and international criticism, has shown growing appetite to rein in some of the NSA programmes that Snowden exposed but it has not softened its hostility to the 30-year-old fugitive.

Republicans want President Barack Obama to send the first suspect arrested in the 2012 attack in Benghazi, Libya, that left four Americans dead to the prison in Guantánamo Bay, Cuba. Sen. John McCain of Arizona was among a group of Senate Republicans urging for Ahmed Abu Khatallah to be sent to Guantánamo — even as Attorney General Eric H. Holder Jr. put out a statement declaring his intent to try Khatallah in U.S. courts. “That’s where the detention facilities are. … It’s totally inappropriate to keep him anywhere else,” McCain said. Sen. Lindsey Graham, R-S.C., said Guantánamo has yielded significant intelligence over the years. “We’re turning war into a crime and it’s going to bite us in the butt,” he said. Democrats, however, dismissed the idea, and Holder made clear Khatallah would stand trial. “Khatallah currently faces criminal charges on three counts, and we retain the option of adding additional charges in the coming days,” Holder said. “Even as we begin the process of putting Khatallah on trial and seeking his conviction before a jury, our investigation will remain ongoing as we work to identify and arrest any co-conspirators.”

Psychiatry's Views on Conservatives "In August 2003, the National Institute of Mental Health (NIMH) and the National Science Foundation (NSF) announced the results of their $1.2 million taxpayer-funded study. It stated, essentially, that traditionalists are mentally disturbed. Scholars from the Universities of Maryland, California at Berkeley, and Stanford had determined that social conservatives, in particular, suffer from ‘mental rigidity,’ ‘dogmatism,’ and ‘uncertainty avoidance,’ together with associated indicators for mental illness."

U.S. defense and diplomatic officials said Thursday that Russia is firing artillery across its border at Ukrainian military positions. At a State Department briefing, spokeswoman Marie Harf said the U.S. also has evidence that Russia intends to deliver powerful rocket systems to pro-Russia rebels in Ukraine. Ms. Harf declined to provide details about the systems or about how that conclusion was reached, sparking a back-and-forth with Associated Press journalist Matthew Lee over how the conclusion was reached.

On Tuesday, U.S. intelligence officials had laid out their case to reporters that Russian-backed Ukrainian separatists shot down Malaysia Airlines Flight 17 last week, relying on photographs, social media, and voiceprint analysis of Ukrainian communications intercepts. The evidence cited, however, didn’t raise the case for Russian involvement in the shoot-down to a new level of certainty, as The Wall Street Journal reported, and officials said they were working to refine evidence and may offer more in coming days.

Jeffrey A. Sterling, a former Central Intelligence Agency officer, was convicted of espionage Monday on charges that he told a reporter for The New York Times about a secret operation to disrupt Iran’s nuclear program.The conviction is a significant victory for the Obama administration, which has conducted an unprecedented crackdown on officials who speak to journalists about security matters without the administration’s approval. Prosecutors prevailed after a yearslong fight in which the reporter, James Risen, refused to identify his sources.

On the third day of deliberations, the jury in federal court in Alexandria, Va., convicted Mr. Sterling on nine felony counts. Mr. Sterling, who worked for the C.I.A. from 1993 to 2002 and now lives in O’Fallon, Mo., faces a maximum possible sentence of decades in prison, though the actual sentence is likely to be far shorter. Judge Leonie M. Brinkema of Federal District Court, who presided over the weeklong trial, allowed Mr. Sterling to remain free on bond and set sentencing for April 24.

The Justice Department had no direct proof that Mr. Sterling, who managed the Iranian operation, provided the information to Mr. Risen, but prosecutors stitched together a strong circumstantial case.

Morgan Stanley has agreed to pay $2.6bn to settle federal charges over its role in the mortgage bubble and subsequent financial crisis.

The investment bank said late on Wednesday the $2.6bn will go to “resolve certain claims” the Justice Department intended to bring against Morgan Stanley. The settlement was disclosed in regulatory filing. Those specific claims were not disclosed. Morgan Stanley said in January it increased its legal reserves by $2.8bn to cover ongoing issues with its residential mortgage-backed securities division. Morgan is the latest bank, just like Citigroup, Bank of America and JPMorgan Chase, to pay billions to settle pending charges related to its role in the 2008 financial crisis. The Justice Department declined to comment. The agreement has not been finalised and could fall though.

U.S. President Barack Obama issued an executive order this Monday slapping Venezuela with new sanctions and declaring the Bolivarian nation an "unusual and extraordinary threat to the national security".  The sanctions target seven individuals accused by the White House of alleged human rights violations and "public corruption", freezing their assets and barring entry into the U.S. The figures include Justo Jose Noguera Pietri, President of the state entity, the Venezuelan Corporation of Guayana (CVG) and Katherine Nayarith Haringhton Padron, a national level prosecutor currently taking the lead in the trials of several Venezuelan political opposition leaders, including Leopoldo Lopez.  The executive order is the latest in a series of U.S. sanctions imposed on Venezuela over the past few months. On February 3, the Obama administration expanded the list of Venezuelan officials barred from entering the U.S., which now includes the Chief Prosecutor Luis Ortega Diaz. 

The Venezuelan government, for its part, maintains that all of those arrested are in the process of facing trial for criminal offences linked to violent destabilization efforts spearheaded by the opposition. Former Caracas Metropolitan Mayor Antonio Ledezma was arrested last month on charges of conspiracy and sedition related to the February 12 thwarted "Blue Coup" attempt. A Venezuelan judge found sufficient evidence linking the opposition figure to air force officials involved in the coup as well as to rightwing terrorist leaders such as Lorent Saleh, who was extradited by Colombian authorities to face charges last year. The other high profile Venezuelan opposition leader currently facing trial is Leopoldo López, who was indicted for his role in leading several months of violent opposition protests last year with the aim of effecting the "exit", or ouster, of the constitutional government. Known as the "guarimbas", these violent protests and street barricades caused the death of 43 people, the majority of whom were security personnel or Chavistas.

"Venezuelan officials past and present who violate the human rights of Venezuelan citizens and engage in acts of public corruption will not be welcome here, and we now have the tools to block their assets and their use of U.S. financial systems," announced White House spokesman Josh Earnest. The U.S. has failed thus far to disclose evidence that might bolster its claims of human rights violations, leading Venezuelan and other regional leaders to condemn what they regard as the arbitrary and political character of U.S. sanctions.  While regional bodies such as the Union of South American Nations (UNASUR) have called for dialogue, Washington has so far refused to support negotiations or to recognise the organisation's stance.

On Tuesday 24th of June at 1pm CET, Julian Assange’s lawyers filed a request to Stockholm District Court to dismiss his detention without charge, which has kept him in different forms of deprivation of liberty since 7 December 2010 (3.5 years). The legal actions will lead to the first custody hearing since his arrest. The Julian Assange case is Sweden’s longest running pre-trial, pre-charge deprivation of liberty (the matter is formally at the ’preliminary investigation’ stage). Julian Assange is in a legal no-man’s-land: he has not been indicted so he cannot formally defend himself. The Swedish government refuses to guarantee he will not be extradited to the United States. The Swedish prosecutor, unlike in other cases, refuses to question him in London or via video link, instead demanding that Mr. Assange give up his right to political asylum and speak to her in Sweden. The UK has encricled Mr. Assange at a cost to date of over GBP 6.6 million/USD 11 million/SEK 75.000.000 (see: http://govwaste.co.uk). Assange obtained political asylum in relation to the United States criminal investigation against WikiLeaks in 2012. The United Kingdom and Sweden have both refused to give a guarantee that Julian Assange will not be extradited to the United States for his WikiLeaks activities. Earlier this week, 59 international organizations submitted complaints about the investigation against Julian Assange to the United Nations Human Rights Commission.

Ali Beshr, Egypt’s Minister of Local Development during the presidency of the ousted Mohamed Morsi, has been detained since Thursday, reports The Cairo Post, quoting Muslim Brotherhood lawyer Abdul Meneim Abdul Maqsoud. For the first time since the ouster of Morsi, Egypt’s prosecutor may implicate the U.S. and EU/NATO member Norway in conspiracy as well as possible espionage, terrorism and high-treason.

Ali Beshr, Egypt’s Minister of Local Development during the presidency of the ousted Mohamed Morsi, has been detained since Thursday, reports The Cairo Post, quoting Muslim Brotherhood lawyer Abdul Meneim Abdul Maqsoud. For the first time since the ouster of Morsi, Egypt’s prosecutor may implicate the U.S. and EU/NATO member Norway in conspiracy as well as possible espionage, terrorism and high-treason.

Most of the leading members of Egypt’s Muslim Brotherhood, a.k.a. Ikhwan, were captured shortly after the dispersal of the Rabaa al-Adweya and Nahda Square sit ins on August 14, 2014. Morsi and over thirty other leading Muslim Brotherhood members and as well as members of the Morsi administration are facing charges, including espionage, terrorism and treason, cooperation with Hamas and Hezbollah in the attempt to subvert Egypt’s security and integrity, as well as the passing on of information that is sensitive to Egypt’s national security to Qatar. Since the overthrow of the Morsi administration, following record demonstrations with an estimated 14 million people, Egypt has also accused Turkey of supporting the Muslim Brotherhood. That includes allegations that Turkey’s intelligence service MIT, under Hakan Fidan, is behind the Muslim Brotherhoods Rabaa TV channel, based in Turkey.

Tulsi Gabbard - a Democrat from Hawaii and member of the Armed Services Committee - demonstrates great knowledge and courage to go against the grain in the US and explain the Syria situation along with Russian and US roles the way it is. Speaking with Wolf Blitzer on CNN, Tulsi explains why the US allying with Islamist extremists to overthrow Syrian President Assad is an illegal, counterproductive war that will cause even more human misery in the region and help ISIS and other Islamist extremists take over all of Syria. Instead of once again being distracted by trying to get rid of a secular dictator, Tulsi explains, the US must stay out of counter productive wars and focus on defeating the Islamist extremists who have declared war on America.

The Obama administration is now accusing Russia of cyber-crime and trying to disrupt the US presidential election. The claim is so far-fetched, it is hardly credible. More credible is that the US is reeling from Putin’s stunning humiliation earlier this week. Since June, US media and supporters of Democrat presidential contender Hillary Clinton have been blaming Russian state-sponsored hackers for breaking into the Democratic party’s database. It is further alleged that Moscow is stealthily trying to influence the outcome of the election, by releasing damaging information on Clinton, which might favor Republican candidate Donald Trump. Russia has vehemently denied any connection to the cyber-crime charges, or trying to disrupt the November poll. Now the Obama administration has stepped into the fray by openly accusing Russia. «US government officially accuses Russia of hacking campaign to interfere with elections», reported the Washington Post. This takes the row to a whole new level. No longer are the insinuations a matter of private, partisan opinion. The US government is officially labelling the Russian state for cyber-crime and political subversion.

Predictably, following the latest allegations, there are calls among American lawmakers for ramping up more economic sanctions against Russia. While US intelligence figures are urging for retaliatory cyber-attacks on Russian government facilities. Vladimir Putin’s spokesman Dmitry Peskov derided the US claims as «rubbish». He noted that the Kremlin’s computer system incurs hundreds of hacking attempts every day, many of which can be traced to American origin, but Moscow doesn’t turn around and blame the US government for such cyber-attacks. There are several signs that the latest brouhaha out of Washington is a bogus diversion. As with previous Russian-hacker claims by the Democrats and US media, there is no evidence presented by the Obama administration to support its grave allegations against the Russian government. Assertion without facts does not meet a minimal standard of proof. When reports emerged in June – again through the Washington Post – that the Democrat National Committee (DNC) was hacked by Russian agents, the allegation relied on investigations by a private cyber security firm by the name of CrowdStrike. The firm is linked by personnel to the NATO-affiliated, anti-Russian think tank Atlantic Council. Again no verifiable evidence was presented then, just the word of a dubious partisan source.

Back then the Russian scare story, for that’s what it was, served as a useful diversion from far more important issues. Such as the 19,000 emails released from the DNC database showing that the party chiefs had preordained Clinton’s presidential nomination over her Democrat rival Bernie Sanders. Much-vaunted «US democracy» was exposed as a fraud, and so the Washington establishment quickly went into damage-limitation mode by smearing Russia. It was the whistleblower site Wikileaks, run by Australian journalist Julian Assange, that released the embarrassing emails. It had nothing to do with Russia. Assange has since hinted that his source was within the Democrat party itself. This is where it gets really explosive. Assange has vowed to release more emails that will prove that Clinton as Secretary of State back in 2011-2012 masterminded the supply of weapons and money to Islamist terror networks in Libya and Syria for the objective of regime change. Furthermore, Assange says that the emails prove that Clinton lied under oath to Congress when she denied in 2013 that she was had any involvement in facilitating arms to the jihadists. Assange has said that Wikileaks is going to publish the incriminating emails on Clinton’s alleged gun-running to terrorists this month. If the evidence stands up, Clinton could be prosecuted for perjury as well as treason in aiding and abetting official terrorist enemies of the US.

Trump is dirty, he’s fully compromised, but not in the way most of his critics assume. Both Trump and Bill Clinton were frequent fliers aboard the Lolita Express with Jeffery Epstein. Epstein is the billionaire pedophile who got busted running an elite child prostitution ring. Victims testified that Epstein had them sleep with rich and powerful men from around the world. They also said that he directed them to collect information on these men. He referred to this as “investing in people”.

f this deal: Prosecutors agreed not to bring far more serious federal charges against Epstein, and not to charge “potential co-conspirators”, including four named individuals. From the Guardian Trump’s name came up several times in this case, and in a separate criminal complaint which accused both Epstein and Trump of raping a minor.

The judge that let Epstein off with a slap on the wrist and protected the other predators was a man named Alexander Acosta. That would be the same Alexander Acosta that Trump nominated as Labor Secretary. I’m sure that’s just a coincidence. Trump has tried to pretend that he hardly knew Epstein, but he made the following quote in an interview in 2002: “He’s a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side. No doubt about it – Jeffrey enjoys his social life.” Trump in 2002

Ron Paul's vibrant fan base is in open rebellion today over Rand Paul's perceived reversal on domestic drone strikes. The Kentucky senator, whose famous 13-hour Senate floor filibuster did much to strengthen his ties with his father's hardcore following, told Fox Business Network on Tuesday he's OK with drone strikes on American citizens who, for instance, rob a liquor store. "I've never argued against any technology being used when you have an imminent threat, an active crime going on," Paul said. "If someone comes out of a liquor store with a weapon and fifty dollars in cash. I don't care if a drone kills him or a policeman kills him."

While it's true that Paul has always made an exception for "imminent threats" -- a 9/11-like moment -- the liquor store scenario struck many libertarians as a very low threshold for domestic drone strikes, especially considering Paul's Senate floor remarks, which if you recall, took a more anti-drone stance. Here's Paul on the Senate floor: I will speak as long as it takes, until the alarm is sounded from coast to coast that our Constitution is important, that your rights to trial by jury are precious, that no American should be killed by a drone on American soil without first being charged with a crime, without first being found to be guilty by a court. Now, a phalanx of Ron Paul and libertarian forums are revolting at the senator's perceived reversal.

Update: In response to the backlash, Sen. Paul released a statement about his views on domestic drone strikes. "Armed drones should not be used in normal crime situations," Paul said. When asked if he was retracting his hypothetical about an armed liquor store thief being killed by a drone, his spokeswoman Moira Bagley told Foreign Policy "not retracting." Here's the full statement:

A confidential Justice Department memo concludes that the U.S. government can order the killing of American citizens if they are believed to be “senior operational leaders” of al-Qaida or “an associated force” -- even if there is no intelligence indicating they are engaged in an active plot to attack the U.S.The 16-page memo, a copy of which was obtained by NBC News, provides new details about the legal reasoning behind one of the Obama administration’s most secretive and controversial polices: its dramatically increased use of drone strikes against al-Qaida suspects, including those aimed at American citizens, such as the  September 2011 strike in Yemen that killed alleged al-Qaida operatives Anwar al-Awlaki and Samir Khan. Both were U.S. citizens who had never been indicted by the U.S. government nor charged with any crimes.  

The secrecy surrounding such strikes is fast emerging as a central issue in this week’s hearing of White House counterterrorism adviser John Brennan, a key architect of the drone campaign, to be CIA director.  Brennan was the first administration official to publicly acknowledge drone strikes in a speech last year, calling them “consistent with the inherent right of self-defense.” In a separate talk at the Northwestern University Law School in March, Attorney General Eric Holder specifically endorsed the constitutionality of targeted killings of Americans, saying they could be justified if government officials determine the target poses  “an imminent threat of violent attack.” But the confidential Justice Department “white paper” introduces a more expansive definition of self-defense or imminent attack than described  by Brennan or Holder in their public speeches.  It refers, for example, to what it calls a “broader concept of imminence” than actual intelligence about any ongoing plot against the U.S. homeland.  

“The condition that an operational  leader present an ‘imminent’ threat of violent attack against the United States does not require the United States to have clear evidence that a specific attack on U.S. persons and interests will take place in the immediate future,” the memo states.Read the entire 'white paper' on drone strikes on Americans

Comey is lionised in DC for one challenge over liberties. Yet he backed waterboarding, wire-tapping and indefinite detention

It had the air of Hollywood. On the night of 10 March 2004, James Comey, the nominee to lead the FBI for the next ten years, rushed to the hospital bedside of his terribly ill boss, Attorney General John Ashcroft.There, he eventually confronted White House Chief of Staff Andrew Card and White House Counsel Alberto Gonzales, who were trying to get the pancreatitis-stricken Ashcroft to renew a still secret and illegal surveillance program on Americans' electronic communications. Neither Ashcroft nor Comey, then acting attorney general because of Ashcroft's condition, would reauthorize the program. When Gonzales authorized the program to go forward without a Justice Department certification, Comey threatened to resign, along with his staff and FBI Director Robert Mueller.The threats worked: President Bush blinked, and Comey won modifications to the secret surveillance program that he felt brought it into compliance with the law. This event, now the stuff of DC legend, has solidified Comey's reputation as a "civil liberties superhero", in the words of CNN's Jake Tapper, and may be one of the reasons President Obama nominated him Friday to be the next director of the FBI.

There's one very big problem with describing Comey as some sort of civil libertarian: some facts suggest otherwise. While Comey deserves credit for stopping an illegal spying program in dramatic fashion, he also approved or defended some of the worst abuses of the Bush administration during his time as deputy attorney general. Those included torture, warrantless wiretapping, and indefinite detention.On 30 December 2004, a memo addressed to James Comey was issued that superseded the infamous memo that defined torture as pain "equivalent in intensity to the pain accompanying serious physical injury, such as organ failure". The memo to Comey seemed to renounce torture but did nothing of the sort. The key sentence in the opinion is tucked away in footnote 8. It concludes that the new Comey memo did not change the authorizations of interrogation tactics in any earlier memos.In short, the memo Comey that approved gave a thumbs-up on waterboarding, wall slams, and other forms of torture – all violations of domestic and international law.

resident Trump is expected to sign orders Friday to temporarily freeze immigration from seven Muslim nations and halt refugee resettlements from everywhere — a classic example of a solution in search of problem, and just the kind of symbolic act that gives weight to radical Islamists when they argue that the U.S. is an enemy of their faith. Trump’s campaign for president was built on a foundation of fear and resentment, and that dark cloud hangs over these putative attempts to bolster national security. Based on a draft version of the executive order, it seems that Trump will impose a 30-day suspension of visas for people from seven predominately Muslim countries — Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen — while the government reviews and presumably tightens its visa-vetting protocols. He also will direct security officials to determine within 30 days what information they need to evaluate potential visitors, and list the countries around the world that don’t provide it. Countries that don’t correct the error of their ways within 60 days of that report — including the seven affected by the ban — will have their citizens barred until they comply. Worse, Trump apparently plans to suspend U.S. acceptance of all refugees — people fleeing war or oppression for whom returning home is not an option — for 120 days as the government reviews and revises its screening procedures, and he is expected to slash the number of refugees the U.S. would accept through October 2017 from 110,000 (set by President Obama last September) to 50,000. Trump also will prioritize the resettlement of refugees seeking asylum on grounds of religious persecution, officially valuing people oppressed because of their religion over those targeted for political dissent, sexual orientation or other reasons. 

And Trump wants plans drawn for “safe areas” for Syrians within Syria or nearby nations, which could help the administration at a later point if it wants to institute a longer-term ban on Syrian refugees. But the draft order offers no details on how the safe zones would be secured, or the legal basis for the U.S. establishing control of territory in a sovereign (if war-torn) state.  Such efforts to restrict access to the U.S. by people fleeing war-torn parts of the world would be misguided and inhumane. The Migration Policy Institute, a nonpartisan think tank, reported in 2015 that in the 14 years after the 9/11 terror attacks, 784,000 refugees resettled in the U.S. Yet during that time only three resettled refugees were convicted on terror-related charges — two of them for plotting against an overseas target and the third for hatching “plans that were barely credible,” according to the report. The vast majority of refugees allowed into the U.S. are first vetted by the United Nations High Commissioner for Refugees, whose screeners then recommend placements in third countries. When the U.S. gets a referral, it conducts its own security screening before offering resettlement, a process that routinely takes one to two years.

What’s more, a study by the New America Foundation shows that 80% of the terrorist attacks in this country since 9/11 have been carried out by American citizens (although some of those perpetrators were naturalized citizens). It is not surprising that some Americans are worried by the hostility directed at them from a small, radicalized segment of the Islamic world. But such fears should not be channeled into a broad, discriminatory retrenchment that is at odds with the best of our humanitarian principles — especially if that retrenchment would likely do little to protect us. The U.S. became a wealthy world power in large part through immigration. And it’s openness has provided a lifeline to the oppressed of the world — the U.S. has formally resettled more refugees than any other country (though at the moment it is not bearing its fair share of the burden of resettling the tens of millions of migrants currently fleeing war zones). Trump’s actions are not only inhumane, they are a betrayal of what the United States stands for. 

Back in 2012, Mario Draghi, President of the European Central Bank, pledged to do “whatever it takes” to protect the eurozone from collapse, infamous words I’m sure he has come to regret. Draghi’s speech at an investment conference in London boosted markets at the time and forced down Spain and Italy’s borrowing costs after saying; “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” The markets responded because they were effectively being manipulated. Known as “Outright Monetary Transactions” the scheme was to have been deployed alongside a QE programme from March 2015, itself racking up ¢80billion a month. Several trillion euros later and the EU looks as precarious as ever with growth a distant memory. In Italy, yields on bonds dropped from 6.3 per cent to 1.2 per cent after that famous speech and all seemed good – on the face of it. But deep down, it was not as we had been led to believe. Italy’s government debt grew and is now equal to 133 per cent of GDP. When Ireland imploded and had to be fully bailed out by the ECB, it’s debt pile was 132.2% of GDP.

With all this intervention, the ECB’s balance sheet ballooned – set to overtake the U.S. Fed Reserve and has now reached over $3trillion according to Bank of America Merrill Lynch (not to be confused with national debt). Then, totally off the mainstream media radar came news that another Italian bank had disintegrated. And while attention was focused on the rescue of Banca Monte dei Paschi di Siena, which is still not fully finalised, news came that Banca Etruria, has quietly slipped into bankruptcy. “It was announced (Dec 21st) that the first part of an investigation concerning fraudulent bankruptcy charges (at Banca Etruria), in which 21 board members are implicated, had been closed. This strand of the investigation concerns €180 million of loans offered by the bank which were never paid back, leading to the regional lender’s bankruptcy and eventual bail-in/out last November that left bondholders holding virtually worthless bonds.” Next up and out of the blue comes UniCredit, the country’s largest bank. It is seeking to raise €13bn of desperately needed capital but large as though this is, the biggest problems, according to the FT is that the smaller banks, like Banca Etruria, are now in a perilous position and on the verge of falling over the cliff edge. Italy has banks on every street corner, with more branches per capita than any other OECD country. The lack of growth (occurred since it joined the Euro), has suppressed much needed profits on the one hand whilst seeing poor wage growth on the other, causing drastically increased non-performing loans that now add up to an eye-watering €360billion.

The FT reports that Italian banks “have long sold their own shares and debt to their retail customers as an attractive alternative to savings products, a disgraceful practice that should never have been allowed. It means that ordinary Italians, many in retirement, have already suffered as bank shares have fallen. They will suffer much more in a bail-in.” The FT is suggesting that a full bail-in is on the cards. It is. truepublica reported back in September that banks throughout the EU would simply steal depositors money if any of them failed now that new bail-in rules had been implemented. And that is exactly what is happening. The result of all this is that Mario Draghi, clearly feeling the strain, has finally admitted defeat and said that there is a strong possibility of the EU falling apart. This time the tactic to keep unity was to threaten every country in the EU by stating that leaving the Eurozone would cost dearly and would require any member country to settle its claims or debts with the bloc’s payments system before severing ties. There’s nothing to stop a desperate member country from leaving and simply defaulting.

The practical consequence of solving this problem is that Bitcoin gives us, for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate. What kinds of digital property might be transferred in this way? Think about digital signatures, digital contracts, digital keys (to physical locks, or to online lockers), digital ownership of physical assets such as cars and houses, digital stocks and bonds … and digital money. All these are exchanged through a distributed network of trust that does not require or rely upon a central intermediary like a bank or broker. And all in a way where only the owner of an asset can send it, only the intended recipient can receive it, the asset can only exist in one place at a time, and everyone can validate transactions and ownership of all assets anytime they want.