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Gary Edwards

Living in the small spaces around the State | RedState - 1 views

www.redstate.com/...-small-spaces-around-the-state

liberty-tyranny Federalism John-Hayward RedState

shared by Gary Edwards on 12 Jul 13 - No Cached
  • That’s why socialists despise federalism.
    • Gary Edwards
      Gary Edwards on 12 Jul 13
       
      Socialist despise federalism?  I disagree.  Socialist love big big and bigger government.  To the socialist, "the needs of society trump the rights and liberty of the individual".  That's why the HATE the Constitution!  The founding documents mark the first time in mankind's recorded history that God given inalienable individual rights and freedoms are the central force and moral imperative driving the institution of government.  To the founders, government only exists to protect the inalienable rights and freedoms of the individual.  The need for an "ordered society" is exactly to protect individual liberty! The socialist rejects this moral imperative and the ordered society created by the founding documents.  They reject the Constitution because it protects and champions individual liberty. 
    • Gary Edwards
      Gary Edwards on 12 Jul 13
       
      Perhaps there is a difference between what the founding fathers meant by Federalism, and what a Socialist means.  The founders thought of Federalism as a system of government where governance is balanced and divided three ways:  federal government, State government, and individual citizens. The powers and authorities of both federal and State governments were carefully enumerated and limited to only those emumerations.  Incredibly, the States voted to ratify the Constitution, thereby creating the Federal government.  Including full recognition of the Supremacy Clause and, the 9th and 10th Amendments.   And then, they embedded the Constitution in their own State Constitutions. I know of no socialist who accepts the concept of individual liberty trumping or even being equal to either State or Federal government authority.  The "Federalism" they accept does not include individual rights and authorities.  They also see State government as a subset of Federal government - and not the independent, sovereign governments consenting to the exact, enumerated authorities and powers granted the Federal government through the Constitution.  A grant that came from the people, and the States themselves.
  • Only centralized, inescapable power will do.  Otherwise, citizens can escape from oppressive socialist schemes by moving to a different community, which is relatively easy to do in 21st-century America.
  •  The Founders were very big on the importance of free people granting, and by extension withdrawing, consent from government.
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  •  Moving away is the simplest method of withdrawing consent.  The ability to walk away from any deal, public or private, is the essential fuel of competition.  That’s why we are always on guard against monopolistic business practices.  Who cares whether a captive audience applauds or not?
  • But the Left insists on monopoly in the case of government power.  Elections are to be followed by obedience.  And this sphere of inescapable power grows relentlessly.
  • The one thing we are not allowed to vote on, ever, is reducing the size of government, and therefore increasing the sphere of liberty.
  • To the Left, that kind of talk is seditious.  Elections are about nudging the government into applying one trillion-dollar solution or other to society’s problems, but there must be a trillion-dollar solution.  Those who would prefer the government to do nothing are considered cruel or selfish… but the government “doing nothing” is the very definition of liberty.
  • So everything is now a matter of government interest, which means politics is all-consuming.  It’s amusing to listen to someone complain that they don’t like politics – a very common sentiment – while also declaring themselves comfortable with gigantic maternal government.
  • If you want the State to control, provide, tax, and limit everything, you had bloody well better learn to love politics.  They will be everywhere; they must be.
  • And because one person’s votes and opinions matter very little against the power of a mighty central government that controls the lives of hundreds of millions of people, you had better be prepared to get organized.  Your interests will only be protected if you belong to a large, aggressive political collective that can command the attention of politicians.
  • You must be aggressive in asserting those interests against others.  The State-run economy is a zero-sum game, a very limited pie, sliced with extremely sharp knives.  You either take, or you give.
  • The last energy of federalism will be drained away when the basket-case blue states begin imploding, and everyone else is taxed to bail them out.  It won’t matter that your state government was managed responsibly, or that your governor provided a growth-oriented business-friendly environment.  Your reward for that will be a bigger share of the bailout for the left-wing lunatics in Illinois and California.
  • Big Government is fundamentally incompatible with social harmony, although its acolytes are always trying to argue the reverse.
  • If you seek a more genteel society with less political strife, you want states to compete with each other for citizens.  
  • You want a federal government that will make America a magnet for investment, instead of building regulatory fences to keep it from fleeing overseas.  You want a system that spends less time telling people what they’re allowed to work for, and obliged to settle for.  
  • You want people to cooperate voluntarily, rather than using force to impose their demands on each other.  Life in such a society is not always placid, but at least the discord tends to be more productive.
  • Government is force.  Big government means more force.  Release cannot be tolerated, or else force dissipates.  Look at the current idiocy of the Washington, D.C. city council’s efforts to arrange a special $12.50 “living wage” that will only apply to Wal-Mart, which wanted to build a few stores in poverty-stricken, high-unemployment communities.  Wal-Mart said no thanks, and escaped.  The living wage crowd is very angry about this.  They won’t be happy until escape is impossible.
Gary Edwards

Knowledge and Power: The Information Theory of Capitalism and How it is Revolutionizing... - 0 views

www.amazon.com/...ref=reg_hu-rd_dp_img

George-Gilder Knowledge-Power Capitalism Constitutional-Capitalism

shared by Gary Edwards on 31 Jul 13 - No Cached
  • Classical economics, whether in the Keynesian variety or the supply-side variety, builds models of economic systems from a mechanistic point of view. That is, it tries to build systems that interact with humans, but for which the human is not an integral part of the system.
  • Economics before Knowledge and Power had the equivalent of a Newtonian perspective: it was believed possible to construct a closed-system model that could predict behavior of humans interacting with the system and responding to incentives.
  • Past economic models have treated capitalism as an incentive system, but in reality capitalism is an information system
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  • Further, in Knowledge and Power George Gilder applies a deep understanding of communication theory to economics.
  • Knowledge and Power shows that information and the human, and specifically the entrepreneur, are central to any economic model.
  • Economic systems, in an analogy to communication systems, can be divided into content and conduit; that is, divided into the information or knowledge (content) and the means for delivery (carrier or conduit).
  • An economy is a vast information system in which knowledge is distributed among its human actors. In capitalist systems, knowledge and power are together in the individual; in socialist systems knowledge still resides in individuals, but power is vested a hierarchy with no access to the knowledge.
  • The conduit is the transport mechanism; it has to be predictable and reliable for the most efficient transfer of content.
  • If the conduit is noisy, unreliable, or if its function varies with time, then its ability to transport content degrades.
  • For economic systems, conduit includes such things as stable currency, property rights, modest taxes, and rule of law. The content is the exchange of information and goods.
  • If the conduit elements of the system aren't reliable, predictable, and stable, then the flow information and goods is degraded or even perverted.
  • Valuable human intelligence (the ultimate resource) is diverted to compensate for or even to exploit noise in the conduit. People choose careers in currency trading, regulatory agencies, tax consulting, government, and law instead of science, engineering, and business and we are all poorer as a result.
Gary Edwards

Is Obama the Head of a Secret Cult? A 15-Point Test. | Casey Research - 0 views

www.caseyresearch.com/...-a-secret-cult-a-15-point-test

Obammunism Obama-Cult

shared by Gary Edwards on 22 Nov 13 - No Cached
  • But what really amazes me are those ideas that even a little reflection and study reveal as ridiculous, but that nonetheless gain a large and devoted following. For instance, that big government—in truth, little more than a motley collection of meddlesome bureaucrats advised by rent-seeking, ivory-tower academics—are in possession of the solutions to all of society's ills.
  • All of which got me to thinking about this odd trait of humans to form associations around bad ideas, and that, in turn, led me to think about the nature of cults. After all, can there be a more ridiculous idea than becoming a trained lapdog to some modern-day messiah? Yet, how does one go from being a go-along-to-get-along kind of person one day to lining up for a fatal dose of poison, thoughtfully flavored with grape Kool-Aid, the next? Or signing up to become a gunman willing to kill or be killed in a foreign adventure in support of a half-baked idea that's cast as somehow being in the "national interest," when even a cursory examination would tell you it's not?
  • Both of those examples are in diametric opposition to self-preservation, the most fundamental of all human instincts.
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  • Less dramatically but yet still with serious consequences, how is it that otherwise rational people come to accept the idea that widespread economic success can flow from the loins of a bureaucracy that produces nothing but regulatory chains on the aspirations of individuals looking to better their lives and those of their families? And when that success fails to materialize, readily accept the idea that the Fed can pump money out by the trillions with no negative effect? In any event, I started poking around the literature of various organizations specializing in the study of mind control and found what I think are some interesting lessons for us all in the studies of cults. After all, if psychological buttons can be pushed in a combination that leads to drinking poisoned Kool-Aid, you can sure as hell bet they can be pushed to get you to vote for a string of sociopathic poseurs… or to dedicate a large chunk of your life and charitable giving to causes that have little connection to reality. Or to decide to create a Facebook page titled, "I love it when I wake up in the morning and Barack Obama is President." In fact, based on the guidelines provided by the International Cult Studies Association (ICSA), you or someone you know may already be in a cult and not even be aware of it. Worse, the president himself might be the head of a cult! There are 15 separate traits the ICSA identifies as common among cults. Ticking through them should prove informative.
  • The group displays excessively zealous and unquestioning commitment to its leader and regards his belief system, ideology, and practices as "the Truth."
  • Questioning, doubt, and dissent are discouraged or even punished.
  • Mind-altering practices are used in excess and serve to suppress doubts about the group and its leader(s).
  • The leadership dictates, sometimes in great detail, how members should think, act, and feel
  • The group is elitist, claiming a special, exalted status for itself, its leader(s), and members.
  • Members are encouraged or required to live and/or socialize only with other group members.
  • The leader is not accountable to any authorities.
  • The group teaches or implies that its supposedly exalted ends justify whatever means it deems necessary.
  • The leadership induces feelings of shame and/or guilt in order to influence and/or control members. Often, this is done through peer pressure and subtle forms of persuasion.
  • Subservience to the leader or group requires members to cut ties with family and friends, and radically alter the personal goals and activities they had before joining the group.
  • The group is preoccupied with bringing in new members.
  • The group is preoccupied with making money.
  • Members are expected to devote inordinate amounts of time to the group and group-related activities.
  • The group has a polarized us-versus-them mentality, which may cause conflict with the wider society.
  • The most loyal members (the "true believers") feel there can be no life outside the context of the group. They believe there is no other way to be, and often fear reprisals to themselves or others if they leave (or even consider leaving) the group.
  • How to Spot a Pathological Liar
  • In researching the nature of cults, I took a side street to investigate the mental condition called "pseudologia fantastica," or in lay terms, a mental condition where individuals become pathological liars. I did so because I wondered how politicians can spew forth their untruths with straight faces.
  • Gary Edwards on 22 Nov 13
     
    "So is Obama really the leader of a cult? Based on the above checklist, I'd have to say he is-and it's a pretty big cult, at that. If you agree, it behooves us to define the overarching beliefs of the cult over which he presides. In my view, those beliefs were accurately summed up by Thomas Sowell in his classic, A Conflict of Visions, as revolving around the idea that we humans can and should be made ever-more perfect by government policy. With that idea at the core of the cult's belief, almost no action, no matter how extreme, is off the table when it comes to government action. Deception, artifice, bullying, war-making, spying, money-printing, regulation, forcing Ritz crackers on children, taking over large swaths of the economy, or propping up companies in favored industries are all justifiable parts and parcels of the whole. Unfortunately, because the cult offers financial handouts to join, the ranks of this particular cult have swelled in recent decades. So much so that it has reached the point where, like an uninfected human in a world full of zombies, those who don't belong increasingly have to maintain a low profile or risk having their faces eaten (or, perhaps less dramatically, being subjected to a forensic audit by the IRS). This is equally true, and maybe more so, with private corporations, which keep their mouths shut as the healthcare burden of non-workers is transferred to their balance sheets, or which trumpet the fact that they're "green" in order to avoid being targeted by cult members."
Paul Merrell

Volcker Rule: How It Work, and Why It May Still Fail | New Republic - 0 views

www.newrepublic.com/...work-and-why-it-may-still-fail

banksters Volcker-rule commercial-banks Glass-Steagall

shared by Paul Merrell on 17 Dec 13 - No Cached
  • s a starting point, we think the Proposed Rule is simply too tepid.” That was how Senators Jeff Merkley and Carl Levin opened their February 2012 comment letter to federal banking regulators about the “Volcker rule,” designed to prevent large banks from making risky proprietary trades for their own profit, the kinds of trades that nearly took down the financial system in 2008. The senators, who authored the rule in Congress, were displeased about a number of loopholes added to the proposal, which they said did not “fulfill the law’s promise.” They demanded that regulators “draw brighter lines, remove unnecessary complexities, and enable cost-effective, consistent enforcement.”Twenty months later, five regulators will today finalize the Volcker rule, and Merkley, for one, is pleased with the result. “I believe the loopholes inherent in that [2012] draft have been significantly reduced or eliminated,” he said in an interview on the eve of the final votes. “I have a much more positive feeling about what will be voted on.” 
  • The tougher rule is a pleasant surprise, given how reliably Wall Street lobbyists have gutted such efforts in the past. For once, the hard work of members of Congress, advocates, and the public actually produced something that could work. But if you view financial reform like a football game, today’s votes kick off the third quarter of a contest destined for 34 consecutive overtimes. Today’s vote mostly triggers an extended period of data collection and guideline-setting, giving mega-banks many future opportunities to water down the rules. And even if implementation wraps up strongly—as it certainly could—regulatory spine will be needed to prevent another financial crisis. As Merkley noted, in matters like this, “you need eternal vigilance.” And, in Washington and on Wall Street, vigilance has often been anything but.
Gary Edwards

The Daily Bell - Catherine Austin Fitts on Moral Investing and the Coming Equity 'Crash... - 1 views

www.thedailybell.com/...and-the-Coming-Equity-Crash-Up

Banksters Federal-Reserve-Bankster-Cartel Catherine-Austin-Fitts

shared by Gary Edwards on 16 Oct 13 - No Cached
  • If you talk about legacy systems and then a breakaway civilization, the legacy systems were financed with debt and if the resources have basically been shifted out and over into "NewCo" then that's going to be an equity model. We're literally coming into what I consider to be a planetary debt for equity swap. So the question for all of us is how do we navigate the turn? When do you leave the bond market and when does the equity increase occur? We've seen North America equity markets rising and the emerging markets falling this year.
  • We're seeing a tremendous divergence in the economy in North America between those portions of the economy that are adapting new technology and growing and the rest of the economy.
  • The other thing I watch is what the divergence means to bond credits and to equity valuations. If you look at the indices you don't really see it. If you look inside the indices you see some enormous splits in quality and value going on.
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  • The slow burn is a world in which for most people income is flat or falling and expenses are steadily rising. It's a debasement scenario. And the reality is the central banks have been able to have a quite liberal monetary policy because we've been able to offset that with labor deflation. So by globalizing labor and instituting technology you have tremendous deflationary pressures, which offset very generous monetary policy.
  • Starting in the '90s a decision was made to move significant amounts of capital out of existing systems in  the developed world and literally trillions of dollars of financial fraud was engineered to do that. As a financial phenomenon it was quite clever and trillions have literally been moved out between the fraud and the bailouts. I think what the Fed has been doing with quantitative easing is running a shredding operation where they buy up the fraudulent mortgage securities paper and are shredding it.
  • If you look at the Treasury, they've run a very tight regulatory process where that money doesn't seep out on Main Street. It's quite phenomenal the way they've managed to control it. I think one of the big questions is where is that money going to go now? It certainly looks to me like a great effort is being made to make sure it goes into equities, sort of keeps the bond market afloat and goes into equities. So I look it as a very political move.
  • You can balance the budget with fiscal measures or you can balance the budget by the Fed just buying bonds and if you look at the Fed's balance sheet, I think they have a much greater capacity to buy bonds. If you look at all the money that was stolen, the breakaway civilization has plenty of money to buy bonds.
  • I would say so far the Fed's policies have worked for what they're intended to do. We've moved a tremendous amount of money out of the economy. We've now basically run through the statute of limitations or done whatever management needed to cut the cords so that what I call the legacy systems can't get the money back. So the financial coup d'état has been successful and now the cover-up is pretty much over and successful.
  • So now you have big decisions. You have two economies. Before this started what I call the legacy systems had $100 trillion of liabilities and $100 trillion of assets – now, I'm just pulling those numbers out of the air – and
  • the coup moved $40 trillion of assets over into NewCo
  • if you will. Now we've got the legacy systems trying to reconcile $60 trillion of assets to $100 trillion of liabilities and there is a long, drawn-out, grinding process by which some people will get 50 cents on the dollar, some people will get zero cents on the dollar, some people will get 100 cents on the dollar. It's just a very difficult, complex and tangled political scene as to how that's going to all happen. Meantime, NewCo, with $40 trillion dollars, is investing and going gangbusters. NewCo is enjoying an unprecedented boom, investing in lots of new technology and new frontiers, including space. So I think the next step is to manage the lowering of expectations in the legacy systems. That's basically what the administration and the Fed are going to be doing for the next couple years, is just gutting their way through retirees' disappointment.
  • There are three things
  • Number one, Obamacare was created to create a framework that would allow significant reduction of costs and benefits under Medicare over time and healthcare over time;
  • Well, the goal of Obamacare is to control.
  • number two, Obamacare was to provide much more control over both the medical establishment and the population at large;
  • and then, three, to do it in a way that will protect corporate profits.
  • in a relatively short period of time US Medicare expenses would be several multiplicities of the GNP.
  • It's clearly a system that makes no economic sense. It's not just that people are aging. If we eat food that has little nutrition and provide healthcare in which pharmaceutical companies are allowed to charge many multiples of what they charge in other countries you're going to get a financial train wreck, which is where we're headed.
  • So I think the goal was to reconcile that and do it in a way that favors corporations and control.
  • If you go around the entire financial ecosystem, they're getting hit within every line by the same pro-centralization policies that ultimately go up to the same people.
  • Do I think it will snuff out the recovery? No. I think it will simply destroy the economics for a whole world of people who were productive.
  • I don't think the banks are fragile. What happened was they were asked to do a job, they did it and now they've taken all the fraudulent paper and sold it to the Fed or torn it up because they had so much in federal credit arbitrage earnings during this period. So I don't think they're fragile.
  • So it certainly puts us in a position where the creditworthiness of a lot of sovereign debt depends on government military might and the ability to debase a variety of players.
  • There's been a lot of regulation to make it easy for Wall Street to control and make it difficult for small businesses to raise and circulate liquid equity. It's one of the areas in the economy where there really has been a very serious conspiracy.
  • if you want to go really fast and prototype and build out infrastructure, the best way to do it is to make capital available to early venture and start-ups.
  • we, as a society, have stopped the markets from working in the start-up and the small business space.
  • If you look at it across all the different tools, from fabrication technology to new composite materials to robotics to lasers, we're reaching a critical mass of the economic costs dropping and the speed of learning accelerating.
  • If you look back at the history of the US stock market you'll see two huge spikes, one in the '20s, one in the '90s, both when very profound new communication and information technology came out.
  • I think we're in danger of another tech bubble. If you look at who's interested in putting money in this and getting lots of prototypes, the last time they did this was in the '90s. They made a fortune on fraud and they used it not only to serve some fundamental economic purposes but they used it to drain out the pension funds and the retail investors.
  • securities convertible into store credits
  • Wall Street doesn't understand about crowdfunding, are the new alignments that are going to be created in terms of circulating knowledge and purchases and money between consumers and entrepreneurs and companies. It's going to create a whole new level of intimacy.
  • I recommend the documentary, "The Naked Brand." It gives a good sense of the worth of that intimacy and the change from a mass media model to much more intimate relationships
  • awakening of global consciousness.
  • in North America there is almost an astonishing lack of transparency about how government money works within the jurisdiction for which we vote for political representation.
  • So if you were going to have proper transparency in America you would have annual financial statements for your congressional district as well as for the whole country.
  • Now, the government has refused since 1995, as required by law, to produce annual financial statements let alone for the places in which you're voting for jurisdiction. And if you're going to have any kind of citizenry accountability or legislator accountability you have to have that kind of transparency and the government has gone to enormous lengths to prevent that kind of transparency while pretending that we're very transparent. So the Internet is going to make it more and more difficult for that absence of transparency to continue or be justified, and that's good.
  • if you have all your assets in the legacy economy and none in the growing economy you're going to suffer.
  • That's number one.
  • Number two, a lot of households have assets which represent liabilities of the legacy economy, whether Social Security, Medicare or others, and one of the things you have to understand is the politics – you need to not get trapped in the politics of stringing people out for those benefits. Do the best you can but don't get lost in the treadmill of trying to get promised benefits that may or may not come true. And to the extent that you can not get financially dependent on those benefits it would be very good.
  • The final thing is, of course, and readers know this if they're reading The Daily Bell, you're dealing in a system that includes a significant amount of corruption and fraud so you just need to be extremely careful about the quality of the people or the enterprises in which you invest or do business with and keep your assets fairly diversified in terms of both areas of the economy, or sectors, and places.
  • Take a look at different predictions that gold is going to increase significantly in value. All those predictions assume that the monetary inflation is going to spill into commodities. And what you're watching instead is the G-7 have been essentially building a corral that forces the horses to run out through the stock market. That's why I call it a crash-up.
  • I think one scenario we're looking at is the possibility of a crash-up scenario where that monetary increase is funneled into the equity markets. One of the most important questions there is, can you get the global population interested in investing in equities? Because the long bond market bull is coming to a close.
  • We have two choices. We can basically write down the debt and go through a huge crunch period or we can have a crash-up in the equity markets.
  • Right after 9/11 – and General Wesley Clark has said this and I experienced it in my tiny little community in Tennessee – we were basically given what the battle plan was going to be – the US military taking over Eurasia. First we were going to go to Afghanistan, then we were going to go to Iraq, then we were going to go to Libya, then we were going to go to Syria and then we're going to Iran. It was all laid out for us and we seem to be following that battle plan, albeit slower than predicted at that time.
  • If we're going to create a global financial system and a one-world currency, you need everybody in the central banking model. You have outliers. We seem to be bringing in all the outliers. As we do, we are trying to checkmate Russia and China within Eurasia, because I think control of Eurasia is essential for maintaining global empire.
  • what we're watching is an effort to bring everybody into a centrally controlled central banking model.
  • Gary Edwards on 16 Oct 13
     
    Catherine is a frequent guest on CoastToCoastAM.com, so I've come to know her well.  Although this interview doesn't discuss her ability to see into the future, I know from experience that she is a real visionary hitting the mark at an astounding clip.  Chalk this interview up as a must read.
Paul Merrell

Tomgram: Nomi Prins, Hillary, Bill, and the Big Six Banks | TomDispatch - 0 views

www.tomdispatch.com/..._bill%2C_and_the_big_six_banks

Auction 2016 Hillary banksters

shared by Paul Merrell on 08 May 15 - No Cached
  • The past, especially the political past, doesn’t just provide clues to the present. In the realm of the presidency and Wall Street, it provides an ongoing pathway for political-financial relationships and policies that remain a threat to the American economy going forward. When Hillary Clinton video-announced her bid for the Oval Office, she claimed she wanted to be a “champion” for the American people. Since then, she has attempted to recast herself as a populist and distance herself from some of the policies of her husband. But Bill Clinton did not become president without sharing the friendships, associations, and ideologies of the elite banking sect, nor will Hillary Clinton.  Such relationships run too deep and are too longstanding.
  • To grasp the dangers that the Big Six banks (JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley) presently pose to the financial stability of our nation and the world, you need to understand their history in Washington, starting with the Clinton years of the 1990s. Alliances established then (not exclusively with Democrats, since bankers are bipartisan by nature) enabled these firms to become as politically powerful as they are today and to exert that power over an unprecedented amount of capital. Rest assured of one thing: their past and present CEOs will prove as critical in backing a Hillary Clinton presidency as they were in enabling her husband’s years in office.  In return, today’s titans of finance and their hordes of lobbyists, more than half of whom held prior positions in the government, exact certain requirements from Washington. They need to know that a safety net or bailout will always be available in times of emergency and that the regulatory road will be open to whatever practices they deem most profitable. 
  • Whatever her populist pitch may be in the 2016 campaign -- and she will have one -- note that, in all these years, Hillary Clinton has not publicly condemned Wall Street or any individual Wall Street leader.  Though she may, in the heat of that campaign, raise the bad-apples or bad-situation explanation for Wall Street’s role in the financial crisis of 2007-2008, rest assured that she will not point fingers at her friends. She will not chastise the people that pay her hundreds of thousands of dollars a pop to speak or the ones that have long shared the social circles in which she and her husband move. She is an undeniable component of the Clinton political-financial legacy that came to national fruition more than 23 years ago, which is why looking back at the history of the first Clinton presidency is likely to tell you so much about the shape and character of the possible second one.
Paul Merrell

Transcript: Comey Says Authors of Encryption Letter Are Uninformed or Not Fair-Minded |... - 0 views

justsecurity.org/...-letter-uninformed-fair-minded

surveillance state FBI Comey encryption backdoors

shared by Paul Merrell on 21 May 15 - No Cached
  • Earlier today, FBI Director James Comey implied that a broad coalition of technology companies, trade associations, civil society groups, and security experts were either uninformed or were not “fair-minded” in a letter they sent to the President yesterday urging him to reject any legislative proposals that would undermine the adoption of strong encryption by US companies. The letter was signed by dozens of organizations and companies in the latest part of the debate over whether the government should be given built-in access to encrypted data (see, for example, here, here, here, and here for previous iterations). The comments were made at the Third Annual Cybersecurity Law Institute held at Georgetown University Law Center. The transcript of his encryption-related discussion is below (emphasis added).
  • Increasingly, communications at rest sitting on a device or in motion are encrypted. The device is encrypted or the communication is encrypted and therefore unavailable to us even with a court order. So I make a showing of probable cause to a judge in a criminal case or in an intelligence case to the Foreign Intelligence Surveillance Court judge that the content of a particular defense or a particular communication stream should be collected to our statutory authority, and the judge approves, increasingly we are finding ourselves unable to read what we find or we’re unable to open a device. And that is a serious concern. I am actually — I think encryption is a good thing. I think there are tremendous societal benefits to encryption. That’s one of the reasons the FBI tells people not only lock your cars, but you should encrypt things that are important to you to make it harder for thieves to take them.
  • A group of tech companies and some prominent folks wrote a letter to the President yesterday that I frankly found depressing. Because their letter contains no acknowledgment that there are societal costs to universal encryption. Look, I recognize the challenges facing our tech companies. Competitive challenges, regulatory challenges overseas, all kinds of challenges. I recognize the benefits of encryption, but I think fair-minded people also have to recognize the costs associated with that. And I read this letter and I think, “Either these folks don’t see what I see or they’re not fair-minded.” And either one of those things is depressing to me. So I’ve just got to continue to have the conversation. I don’t know the answer, but I don’t think a democracy should drift to a place where suddenly law enforcement people say, “Well, actually we — the Fourth Amendment is an awesome thing, but we actually can’t access any information.”
  • ...2 more annotations...
  • But we have a collision going on in this country that’s getting closer and closer to an actual head-on, which is our important interest in privacy — which I am passionate about — and our important interest in public safety. The logic of universal encryption is inexorable that our authority under the Fourth Amendment — an amendment that I think is critical to ordered liberty — with the right predication and the right oversight to obtain information is going to become increasingly irrelevant. As all of our lives become digital, the logic of encryption is that all of our lives will be covered by strong encryption, therefore all of our lives — I know there are no criminals here, but including the lives of criminals and terrorists and spies — will be in a place that is utterly unavailable to court ordered process. And that, I think, to a democracy should be very, very concerning. I think we need to have a conversation about it. Again, how do we strike the right balance? Privacy matters tremendously. Public safety, I think, matters tremendously to everybody. I think fair-minded people have to recognize that there are tremendous benefits to a society from encryption. There are tremendous costs to a society from universal strong encryption. And how do we think about that?
  • We’ve got to have a conversation long before the logic of strong encryption takes us to that place. And smart people, reasonable people will disagree mightily. Technical people will say it’s too hard. My reaction to that is: Really? Too hard? Too hard for the people we have in this country to figure something out? I’m not that pessimistic. I think we ought to have a conversation.
  • Paul Merrell on 21 May 15
     
    Considering that I'm over 10 times as likely to die from a police shoooting as I am from a terrorist attack, how about we begin this conversation, Mr. Comey, by you providing formal notice to everyone who's had the telephone metadata gathered or searched all dates on which such gatherings and searches were conducted so citizens can file suit for violation of their privacy rights? Note that the Second U.S. Circuit Court of Appeals held last week that the FBI exceeded statutory authority in gathering and searching that information. Because the gathering and searching was not authorized, that would bring the gathering and searching under the protections of the Privacy Act, including the FBI duty to account for the disclosures  and to pay at least the statutory minimum $1,500 in damges per incident.  Then I would like to have an itemization of all of the commercial software and hardware products that your agency and or your buddies at NSA built backdoors into.  Then your resignation for millions of violations of the Privacy Act would be deeply appreciated. Please feel free to delegate the above mentioned tasks to your successor. 
Paul Merrell

How Hedge and Vulture Funds Have Exploited Puerto Rico's Debt Crisis | The Nation - 0 views

www.thenation.com/...oited-puerto-ricos-debt-crisis

banksters financial-collapse Puerto-Rico vultures

shared by Paul Merrell on 22 Jul 15 - No Cached
  • Investors in Puerto Rican government debt are a mixed bag, including some mom-and-pop mutual funds like OppenheimerFunds and Franklin Advisers, which have been prioritized in the restructuring costs because of the length of their investments and the fact that they paid more for them. But over the past few years there’s been a growing presence of hedge funds, which avoid regulatory oversight and are solely interested in profit, regardless of how a national—or, in the case of Puerto Rico, territorial—economy performs. Vulture funds, their more extreme counterparts, specifically target debt that is distressed or in danger of default in troubled economies, hoping to cash in on settlements after buying the debt for pennies on the dollar. They can paralyze attempts at debt restructuring by insisting on repayment at full face value. Given Puerto Rico’s recent history of privatizing its airport and highway toll collection system, it is vulnerable to further selloffs—even its prized university system—as concessions to the vultures.
Paul Merrell

TIMELINE: China's Efforts to Stem $3.2 Trillion Stock Rout - Bloomberg Business - 0 views

www.bloomberg.com/...o-stem-3-2-trillion-stock-rout

economy China stock-market Shanghai-Composite

shared by Paul Merrell on 07 Jul 15 - No Cached
  • China’s policy makers are coming up with new tactics almost every day to stem a rout that’s wiped $3.2 trillion off the world’s second-biggest stock market. Saturday June 27: *PBOC CUT: After the Shanghai Composite Index posted a 19 percent, two-week plunge, the central bank cut its benchmark lending rate and deposit rate, while also reducing required reserve ratios for some lenders Monday June 29: Shanghai Composite rises 2.3 percent at the open before reversing course and plunging as much as 7.6 percent. Closes 3.3 percent lower. * CSRC JAWBONING: China’s securities regulator says margin trading at brokerages is “controllable” and deposits in margin accounts are“nowhere near” dangerous levels. China Securities Regulatory Commission spokesman also urges investors to be rational and not to believe “shorting China rumors”
Joseph Skues

Say goodbye to small farms - 0 views

trib.com/...50-581a-94fa-08bd1e8093c8.html

banksters financial-oligarchs finacial-crisis obama-socialism obammunism s.510 Banksters

shared by Joseph Skues on 19 Nov 10 - No Cached
  • Posted: Friday, November 19, 2010 12:00 am |
  • In effect, the federal government is gradually collectivizing the farms, although it is careful to use euphemisms for its activities such as "safety" and "modernization" to avoid getting us peasants in an uproar. Soon the only folks who will be able to comply with this regulatory quagmire will be the huge corporate farms; bye-bye small farmers and ranchers.
  • unny, I don't see their authority to enact this bill in the Constitution.
  • ...2 more annotations...
  • Sen. Mike Enzi has cosponsored S510
  • riday, November 19, 2010 12:00 am
Gary Edwards

Speculators, Politicians, and Financial Disasters : A history of Banking and Socialism - 0 views

www.commentarymagazine.com/...the-madness-of-crowds-13180

politics banking socialism fannie-freddie

shared by Gary Edwards on 29 Oct 08 - Cached
  • As the sorry tale of the S&L crisis suggests, the road to financial hell is sometimes paved with good intentions. There was nothing malign in attempting to keep these institutions solvent and profitable; they were of long standing, and it seemed a noble exercise to preserve them. Perhaps even more noble, and with consequences that have already proved much more threatening, was the philosophy that would eventually lead the United States into its latest financial crisis—a crisis that begins, and ends, with mortgages. A mortgage used to stay on the books of the issuing bank until it was paid off, often twenty or thirty years later. This greatly limited the number of mortgages a bank could initiate. In 1938, as part of the New Deal, the federal government established the Federal National Mortgage Association, nicknamed Fannie Mae, to help provide liquidity to the mortgage market.
  • it was, ironically, the New Deal that institutionalized discrimination against blacks seeking mortgages. In 1935 the Federal Housing Administration (FHA), established in 1934 to insure home mortgages, asked the Home Owner’s Loan Corporation—another New Deal agency, this one created to help prevent foreclosures—to draw up maps of residential areas according to the risk of lending in them. Affluent suburbs were outlined in blue, less desirable areas in yellow, and the least desirable in red. The FHA used the maps to decide whether or not to insure a mortgage, which in turn caused banks to avoid the redlined neighborhoods. These tended to be in the inner city and to comprise largely black populations. As most blacks at this time were unable to buy in white neighborhoods, the effect of redlining was largely to exclude even affluent blacks from the mortgage market.
  • In 1977, responding to political pressure to abolish the practice, Congress finally passed the Community Reinvestment Act, requiring banks to offer credit throughout their marketing areas and rating them on their compliance. This effectively outlawed redlining.
  • ...4 more annotations...
  • in 1995, regulations adopted by the Clinton administration took the Community Reinvestment Act to a new level. Instead of forbidding banks to discriminate against blacks and black neighborhoods, the new regulations positively forced banks to seek out such customers and areas. Without saying so, the revised law established quotas for loans to specific neighborhoods, specific income classes, and specific races. It also encouraged community groups to monitor compliance and allowed them to receive fees for marketing loans to target groups.
  • the Clinton changes in 1995. As part of them, Fannie and Freddie were now permitted to invest up to 40 times their capital in mortgages; banks, by contrast, were limited to only ten times their capital. Put briefly, in order to increase the number of mortgages Fannie and Freddie could underwrite, the federal government allowed them to become grossly undercapitalized—that is, grossly to reduce their one source of insurance against failure. The risk of a mammoth failure was then greatly augmented by the sheer number of mortgages given out in the country.
    • Gary Edwards
      Gary Edwards on 29 Oct 08
       
      wow, there's that "40 to 1" lending to asset ratio that took down the big five investment banks in October of 2008!
  • Since banks knew they could offload these sub-prime mortgages to Fannie and Freddie, they had no reason to be careful about issuing them. As for the firms that bought the mortgage-based securities issued by Fannie and Freddie, they thought they could rely on the government’s implicit guarantee. AIG, the world’s largest insurance firm, was happy to insure vast quantities of these securities against default; it must have seemed like insuring against the sun rising in the West.
  • remaining at the heart of the financial beast now abroad in the world are Fannie Mae and Freddie Mac and the mortgages they bought and turned into securities. Protected by their political patrons, they were allowed to pile up colossal debt on an inadequate capital base and to escape much of the regulatory oversight and rules to which other financial institutions are subject. Had they been treated as the potential risks to financial stability they were from the beginning, the housing bubble could not have grown so large and the pain that is now accompanying its end would not have hurt so much.
  • Gary Edwards on 29 Oct 08
     
    Fueled by easy credit, the real-estate market had been rising swiftly for some years. Members of Congress were determined to assure the continuation of that easy credit. Suddenly, the party came to a devastating halt. Defaults multiplied, banks began to fail. Soon the economic troubles spread beyond real estate. Depression stalked the land. The year was 1836.
Gary Edwards

Revealed - the capitalist network that runs the world - physics-math - 19 October 2011 ... - 0 views

www.newscientist.com/...twork-that-runs-the-world.html

Banksters Federal-Reserve-Bankster-Cartel Complex-systems

shared by Gary Edwards on 20 Oct 11 - No Cached
  • Gary Edwards on 20 Oct 11
     
    The secret 1% revealed at last. Using advanced "complex systems heuristics", a group of mathematicians and scientist studying the stability of complex systems has applied their techniques to study the interlocking relationships driving the global economy. They claim to have identified the inner architecture of global economic power, and hope to make it more stable. Incredible stuff! A list of the top 50 of the 147 superconnected companies cross references nicely with the question, "Who Owns the Federal Reserve Bankster Cartel?" The focus is on global "Transnational Corporations" (TNCs) and how the interlocking ownership/cross-director-relationships has affected the global economy. The study discovers a "super-entity" comprised of a core 147 companies that control over 40% of the world's wealth and productivity capacity. Most of these are global banking and financial operations. Yes, Wall Street Banksters! "In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network," says James Glattfelder, head of the Zurich research team. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group. Collectively this 1% control a further 60% of global revenues. excerpt: AS OWS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters' worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

    The study's assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. Pushing the analysis further, they say, could help to identify ways of making global capitalism more stable.

    The idea that a few bankers control a large chunk of the global econo
  • Paul Merrell on 12 Aug 12
     
    Important work but perhaps too immature to base decisions on with confidence. I was struck by this statement: "Glattfelder says we may need global anti-trust rules, which now exist only at national level, to limit over-connection among TNCs. Sugihara says the analysis suggests one possible solution: firms should be taxed for excess interconnectivity to discourage this risk." My relevant question is, who would be the recipients of the postulated tax? Anytime you create a revenue stream, the recipients acquire a vested interest in maintaining and expanding that revenue stream and the folks who pay the revenue acquire a vested interest in minimizing or eliminating the expense. While the payers incentives are consistent with the article's statement, the identities of the recipients and their incentives to tweak the tax to produce more revenue needs more thought and discussion with a strong focus on: [i] who makes that decision; [ii] who has the the power to decide whether that authority is abused; and [iii] who has standing to initiate actions to correct abuse. On the latter, the U.S. Constitution would seem to require that those who pay the taxes are entitled to Due Process. But at the same time, the individual consumer can also be injured by abuse. However, a hallmark trait of most trade agreements is that only government and regulated corporations are granted standing to challenge regulatory decisions, which has skewed their interpretation heavily to the corporate side. Universal standing is the cure.
Paul Merrell

Slashdot (15) - 0 views

slashdot.org/?source=autorefresh

surveillance state NSA call-metadata cloud computing

shared by Paul Merrell on 10 Feb 14 - No Cached
  • "In a review of NSA surveillance last month, President Obama called for a new approach on telephony metadata that will 'establish a mechanism that preserves the capabilities we need without the government holding this bulk metadata.' Obama said that a third party holding all the data in a single, consolidated database would be essentially doing what is a government function, and may not increase public confidence that its privacy is being protected. Now, an RFI (request for information) has been posted to get information on U.S. industry's commercially available capabilities, so that the government can investigate alternative approaches."
  • Research for the Public Utility Law Project (PULP) has been released which details 'how Verizon deliberately moves back and forth between regulatory regimes, classifying its infrastructure either like a heavily regulated telephone network or a deregulated information service depending on its needs. The chicanery has allowed Verizon to raise telephone rates, all the while missing commitments for high-speed internet deployment' (PDF). In short, Verizon pushed for the government to give it common carrier privileges under Title II in order to build out its fiber network with tax-payer money. Result: increased service rates on telephone users to subsidize Verizon's 'infrastructure investment.' When it comes to regulations on Verizon's fiber network, however, Verizon has been pushing the government to classify its services as that of information only — i.e., beyond Title II.
  • Verizon has made about $4.4 billion in additional revenue in New York City alone, 'money that's funneled directly from a Title II service to an array of services that currently lie beyond Title II's reach.' And it's all legal. An attorney at advocacy group Public Knowledge said it best: 'To expect that you can come in and use public infrastructure and funds to build a network and then be free of any regulation is absurd....When Verizon itself is describing these activities as a Title II common carrier, how can the FCC look at broadband internet and continue acting as though it's not a telecommunication network?'"
Paul Merrell

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

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

net-neutrality FCC Verizon banksters

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

Amy Goodman: U.S. sailors and Marines allege Fukushima radiation sickness : Ct - 0 views

host.madison.com/...9f-5ec5-8275-ac3f6997fee0.html

environment Fukushima litigation Navy class action

shared by Paul Merrell on 24 Mar 14 - No Cached
  • Three years have passed since the earthquake and tsunami that caused the nuclear disaster at the Fukushima Daiichi nuclear power plant in Japan. The tsunami's immediate death toll was more than 15,000, with close to 3,000 still missing. Casualties are still mounting, though, both in Japan and much farther away. The impact of the Fukushima nuclear meltdown on health and the environment is severe, compounded daily as radioactive pollution continues to pour from the site, owned by the Tokyo Electric Power Company, TEPCO.In an unusual development, more than 100 U.S. Marines and Navy sailors have joined a class action suit, charging TEPCO with lying about the severity of the disaster as they were rushing to the scene to provide humanitarian assistance. They were aboard the nuclear-powered aircraft carrier USS Ronald Reagan and other vessels traveling with the Reagan, engaged in humanitarian response to the disaster. The response was dubbed "Operation Tomodachi," meaning "Operation Friendship."
  • This is the second attempt to sue TEPCO on behalf of these sailors and Marines. The first lawsuit had eight plaintiffs and was dismissed for technical reasons based on the court's lack of jurisdiction. "By June of 2013, we had 51 sailors and Marines who had contacted us with various illnesses," lead attorney Charles Bonner explained, "including thyroid cancers, testicular cancers, brain cancers, unusual uterine problems, excessive uterine bleeding, all kinds of gynecological problems, problems that you do not see in a population of 20-year-olds, 22-year-olds, 23-year-olds, even 35-year-olds. ... So, now we have filed a class action for approximately a hundred sailors." As news of the lawsuit spreads, many more will likely join in. The USS Reagan had at least 5,500 people on board when off the coast of Japan.
  • The ongoing nuclear disaster at Fukushima should serve as a warning to the world. Instead of following the wisdom of Naoto Kan, President Barack Obama is committing public funds to build the first new nuclear power plants in the United States in more than 30 years. In the wake of Fukushima, Obama's Nuclear Regulatory Commission put out talking points designed to diminish growing public concern with the safety of nuclear power plants in the U.S. NBC News obtained the NRC's internal emails instructing staff to downplay safety risks. U.S. nuclear plants are not safe. The U.S. sailors and Marines of Operation Tomodachi deserve their day in court. The U.S. public deserves an honest assessment of the grave risks of nuclear power.
Paul Merrell

Why Aren't Big Bankers in Jail? - FAIR: Fairness & Accuracy In Reporting - 0 views

fair.org/...why-arent-big-bankers-in-jail

financial-collapse criminal-immunity too-big-to-jail too-big-to-fail banksters

shared by Paul Merrell on 05 Jan 14 - No Cached
  • The man in charge of a bank that engaged in massive mortgage fraud chatted with a corporate media host (CNBC Squawk on the Street, 7/12/13) about the fact that virtually none of those who enriched themselves while eviscerating the life savings of many blameless people, derailing the US economy along the way, have faced criminal prosecution
  • Granted, Cramer is no one's idea of a serious interrogator of the financial system (FAIR Blog, 3/13/09). But much journalism on the question of criminal prosecution of industry leaders amounts to similar apologia. While there have been substantive inquiries into the wrongdoing of investment banks and auditors, those calling for jail time are often dismissed as irrational, driven by "blood lust" (Washington Post, 9/12/13), "anger" (Chicago Tribune, 11/30/13) or "vengeance" (Washington Post, 11/18/13).
  • What the soft-headed among us don't recognize, evidently, is that "blowing up your company isn't necessarily a crime," as the Christian Science Monitor (10/11/11) put it. "America doesn't criminalize bad business decisions," wrote the Washington Post (9/12/13). Or, from Businessweek (5/12/11): "In the American legal system, people who merely act badly or unwisely do not do time." But some have no trouble pointing to actual crimes in the crisis. "Issuing a mortgage that is known to be based on false information and then selling it in the secondary market is fraud and punishable by time in jail," economist Dean Baker (Beat the Press, 9/13/13) noted, citing the Financial Crisis Inquiry Commission. "Packaging loans into mortgage backed securities that an investment bank has good reason to believe are based on false information is also fraud and punishable by time in jail." Former federal bailout inspector Neil Barofsky agrees we're not talking about a perhaps lamentable but inactionable "culture." Asked by NPR (7/26/13) about the no-actual-crime "narrative," Barofsky answered: "No. I think that there was a tremendous amount of fraud."
  • ...2 more annotations...
  • We're told such calls come from the margins: That no "financial industry types" have been jailed is "a recurring theme among Occupy Wall Street protesters and some Democratic politicians" (Christian Science Monitor, 10/11/11) or "the Occupy Wall Street crowd" (New York Times, 3/1/13). People who believe bankers should go to jail are deflecting blame—from the people: "The real scandal," explained the Washington Post's Charles Lane ("Banks Aren't the Bad Guys," 11/18/13), was "Americans' shared, erroneous belief in ever-rising housing prices and corresponding mania to profit from them." And maybe they need to move on: "This all happened a really long time ago. What-ever happened to the statute of limitations?" the Washington Post (11/19/13) asked itself in a recent Q&A.
  • Certainly the problem extends beyond the actions of a few bigwigs. But people who say jailing industry executives should be the sole response exist only in pundits' minds. William Black, who advocates prison for industry executives (Moyers & Company, 9/17/13), pointed to structural reasons for a lack of prosecutions, including regulatory agencies' abandonment of key functions since the 1980s' Savings & Loan scandal. "When the regulators ceased making criminal referrals—which had nothing to with an end of crime, obviously; it just had to do with a refusal to be involved in the prosecutorial effort anymore—they doomed us to a disaster where we would not succeed." Others say revolving-door relationships between banks and their government watchdogs contribute to settlements that are too generous to serve as deterrents (LittleSis, 10/23/13). Even the historic $13 billion JP Morgan settlement winds up being less than meets the eye, as much of the fine is tax-deductible, $4 billion of it is part of an earlier settlement and much of the rest will take the form of mortgage relief that will help the bank in the long run (Salon, 11/20/13).
  • Paul Merrell on 05 Jan 14
     
    Fairness & Accuracy in Reporting weighs in on mainstream media's reluctance to call for banksters to be issued horizontal striped suits, noting that the excuses used ignore that there are real victims and that real crimes were comitted. 
Paul Merrell

NSA Spying Inspires ProtonMail 'End-to-End' Encrypted Email Service | NDTV Gadgets - 0 views

gadgets.ndtv.com/...encrypted-email-service-526769

surveillance state secure-email ProtonMail

shared by Paul Merrell on 20 May 14 - No Cached
  • ne new email service promising "end-to-end" encryption launched on Friday, and others are being developed while major services such as Google Gmail and Yahoo Mail have stepped up security measures.A major catalyst for email encryption were revelations about widespread online surveillance in documents leaked by Edward Snowden, the former National Security Agency contractor."A lot of people were upset with those revelations, and that coalesced into this effort," said Jason Stockman, a co-developer of ProtonMail, a new encrypted email service which launched Friday with collaboration of scientists from Harvard, the Massachusetts Institute of Technology and the European research lab CERN.Stockman said ProtonMail aims to be as user-friendly as the major commercial services, but with extra security, and with its servers located in Switzerland to make it more difficult for US law enforcement to access.
  • "Our vision is to make encryption and privacy mainstream by making it easy to use," Stockman told AFP. "There's no installation. Everything happens behind the scenes automatically."Even though email encryption using special codes or keys, a system known as PGP, has been around for two decades, "it was so complicated," and did not gain widespread adoption, Stockman said.After testing over the past few months, ProtonMail went public Friday using a "freemium" model a basic account will be free with some added features for a paid account.
  • By locating in Switzerland, ProtonMail hopes to avoid the legal woes of services like Lavabit widely believed to be used by Snowden which shut down rather than hand over data to the US government, and which now faces a contempt of court order.Even if a Swiss court ordered data to be turned over, Stockman said, "we would hand over piles of encrypted data. We don't have a key. We never see the password."
  • ...3 more annotations...
  • As our users from China, Iran, Russia, and other countries around the world have shown us in the past months, ProtonMail is an important tool for freedom of speech and we are happy to finally be able to provide this to the whole world," the company said in a blog post.Google and Yahoo recently announced efforts to encrypt their email communications, but some specialists say the effort falls short."These big companies don't want to encrypt your stuff because they spy on you, too," said Bruce Schneier, a well-known cryptographer and author who is chief technology officer for CO3 Systems."Hopefully, the NSA debate is creating incentives for people to build more encryption."Stockman said that with services like Gmail, even if data is encrypted, "they have the key right next to it if you have the key and lock next to each other, so it's pretty much useless."
  • Lavabit founder Ladar Levison meanwhile hopes to launch a new service with other developers in a coalition known as the "Dark Mail Alliance."Levison told AFP he hopes to have a new encrypted email system in testing within a few months and widely available later this year."The goal is to make it ubiquitous, so people don't have to turn it on," he said.But he added that the technical hurdles are formidable, because the more user-friendly the system becomes, "the more susceptible it is to a sophisticated attacker with fake or spoofed key information."Levison said he hopes Dark Mail will become a new open standard that can be adopted by other email services.
  • on Callas, a cryptographer who developed the PGP standard and later co-founded the secure communications firm Silent Circle, cited challenges in making a system that is both secure and ubiquitous."If you are a bank you have to have an email system that complies with banking regulations," Callas told AFP, which could allow, for example, certain emails to be subject to regulatory or court review."Many of the services on the Internet started with zero security. We want to start with a system that is totally secure and let people dial it down."The new email system would complement Silent Circle's existing secure messaging system and encrypted mobile phone, which was launched earlier this year."If we start competing for customers on the basis of maximum privacy, that's good for everybody," Callas said.
  • Paul Merrell on 20 May 14
     
    They're already so swamped that you have to reserve your user name and wait for an invite. They say they have to add servers. Web site is at https://protonmail.ch/ "ProtonMail works on all devices, including desktops, laptops, tablets, and smartphones. It's as simple as visiting our site and logging in. There are no plugins or apps to install - simply use your favorite web browser." "ProtonMail works on all devices, including desktops, laptops, tablets, and smartphones.
Paul Merrell

Breaking Up is Hard to Do: Goldman Sachs Wants JPMorgan in 4 Pieces | nsnbc international - 0 views

nsnbc.me/...chs-wants-jpmorgan-in-4-pieces

banksters litigation JPMorgan breakup

shared by Paul Merrell on 06 Jan 15 - No Cached
  • JPMorgan Chase & Co (JPM) is paying out a $100 million settlement to keep details about an antitrust lawsuit filed 2 years ago out of the court system and public record.
  • JPM is one of 12 mega-banks named in the suit while they were particularly named for the price manipulation on foreign exchanges markets using digital communications and social media. Several investors including hedge funds, public pension funds, the Philadelphia city and other market investors filed a complaint accusing 12 banks of manipulating WM/Reuters rates through chat rooms, e-mail and instant messaging since Jan 2003. • JPMorgan  • Bank of America  • Goldman Sachs  • Morgan Stanley  • Citigroup  • UBS  • Credit Suisse  • HSBC • Barclays  • The Royal Bank of Scotland  • BNP  • Deutsche Bank.
  • According to court documents, “the banks’ manipulation of WM/Reuters rates impacted the value of financial transactions in the U.S., including foreign exchange trade. Further, the plaintiffs claimed that these also negatively affected the pension and savings accounts that are dependent on global foreign exchange rates.”
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  • Goldman Sachs released a report citing that JPM should be broken up into 4 parts, each culminating in an increase of 25% worth over the total corporate assets. The report stated: “The biggest of the pieces would include the bank’s branch network, which could be worth over $100 billion on its own. JPMorgan’s investment bank would be nearly as large, followed by its commercial bank and an asset management company.” Richard Ramsden, analyst for Goldman Sachs and author of the report explained: “even splitting JPMorgan in two—dividing the investment bank from the traditional bank, returning the company roughly to what was allowed before the Glass Steagall Act was repealed in the early 2000s—would boost the overall value of the current bank by 16%. Our analysis indicates that even accounting for lost synergies, a JPM breakup would be accretive to shareholders in most scenarios.” Sandy Weill, former CEO of Citigroup commented: “[JPM] became the first of the nation’s modern mega-banks. Breaking up the large banks makes sense.” Ramsden asserts “the new capital requirements for big banks proposed by the Federal Reserve in early December make now a good time to consider such a split.”
  • The Federal Reserve Bank (FRB) opened the door for banks to securitize risky derivatives with the announcement to “extend the deadline for banks to sell off stakes in hedge funds and private- equity funds” until 2017. Journalist David Weidner explained: “Now, the ‘push-out’ rule is gone, so we’re in the same position again. And the Fed has delayed a potential roadblock to a taxpayer bailout. In essence, the Federal Deposit Insurance Corp. and the Fed are implicitly suggesting that losses from hedge funds and private equity won’t hold up government support.” Weidner continued: “Ultimately, let’s be honest, the delay isn’t just a delay, it’s to buy time so the bank lobby can eliminate the Volcker Rule altogether. These investments produced risky, but potentially big, returns. Why is it that the bankers are the only ones with good memories?” This was part of the official delay of the Volker Rule, which would ban risky betting with derivatives by banks, approved in 2010. Because of this announcement, Ramsden said: “A break up makes more sense for JPMorgan because, unlike some of its rivals, its individual businesses are strong enough to stand on their own. The bank is partly a victim of its own success.”
Paul Merrell

Bail-In and the Financial Stability Board: The Global Bankers' Coup | nsnbc international - 0 views

nsnbc.me/...lity-board-global-bankers-coup

banksters G20 Financial-Stability-Board must-read

shared by Paul Merrell on 13 Dec 14 - No Cached
  • Ellen H. Brown (WoD) : On December 11, 2014, the US House passed a bill repealing the Dodd-Frank requirement that risky derivatives be pushed into big-bank subsidiaries, leaving our deposits and pensions exposed to massive derivatives losses. The bill was vigorously challenged by Senator Elizabeth Warren; but the tide turned when Jamie Dimon, CEO of JPMorganChase, stepped into the ring. Perhaps what prompted his intervention was the unanticipated $40 drop in the price of oil. As financial blogger Michael Snyder points out, that drop could trigger a derivatives payout that could bankrupt the biggest banks. And if the G20’s new “bail-in” rules are formalized, depositors and pensioners could be on the hook. The new bail-in rules were discussed in my last last article entitled “New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND Pensioners.” They are edicts of the Financial Stability Board (FSB), an unelected body of central bankers and finance ministers headquartered in the Bank for International Settlements in Basel, Switzerland. Where did the FSB get these sweeping powers, and is its mandate legally enforceable?
  • Those questions were addressed in an article I wrote in June 2009, two months after the FSB was formed, titled “Big Brother in Basel: BIS Financial Stability Board Undermines National Sovereignty.” It linked the strange boot shape of the BIS to a line from Orwell’s 1984: “a boot stamping on a human face—forever.” The concerns raised there seem to be materializing, so I’m republishing the bulk of that article here. We need to be paying attention, lest the bail-in juggernaut steamroll over us unchallenged. The Shadowy Financial Stability Board Alarm bells went off in April 2009, when the Bank for International Settlements (BIS) was linked to the new Financial Stability Board (FSB) signed onto by the G20 leaders in London. The FSB was an expansion of the older Financial Stability Forum (FSF) set up in 1999 to serve in a merely advisory capacity by the G7 (a group of finance ministers formed from the seven major industrialized nations). The chair of the FSF was the General Manager of the BIS. The new FSB was expanded to include all G20 members (19 nations plus the EU).
  • Formally called the “Group of Twenty Finance Ministers and Central Bank Governors,” the G20 was, like the G7, originally set up as a forum merely for cooperation and consultation on matters pertaining to the international financial system. What set off alarms was that the new Financial Stability Board had real teeth, imposing “obligations” and “commitments” on its members; and this feat was pulled off without legislative formalities, skirting the usual exacting requirements for treaties. It was all done in hasty response to an “emergency.” Problem-reaction-solution was the slippery slope of coups. Buried on page 83 of an 89-page Report on Financial Regulatory Reform issued by the US Obama administration was a recommendation that the FSB strengthen and institutionalize its mandate to promote global financial stability. It sounded like a worthy goal, but there was a disturbing lack of detail. What was the FSB’s mandate, what were its expanded powers, and who was in charge? An article in The London Guardian addressed those issues in question and answer format:
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  • For three centuries, private international banking interests have brought governments in line by blocking them from issuing their own currencies and requiring them to borrow banker-issued “banknotes” instead. Political colonialism is now a thing of the past, but under the new FSB guidelines, nations could still be held in feudalistic subservience to foreign masters. Consider this scenario: the new FSB rules precipitate a massive global depression due to contraction of the money supply. XYZ country wakes up to the fact that all of this is unnecessary – that it could be creating its own money, freeing itself from the debt trap, rather than borrowing from bankers who create money on computer screens and charge interest for the privilege of borrowing it. But this realization comes too late: the boot descends and XYZ is crushed into line. National sovereignty has been abdicated to a private committee, with no say by the voters. Marilyn Barnewall, dubbed by Forbes Magazine the “dean of American private banking,” wrote in an April 2009 article titled “What Happened to American Sovereignty at G-20?”: It seems the world’s bankers have executed a bloodless coup and now represent all of the people in the world. . . . President Obama agreed at the G20 meeting in London to create an international board with authority to intervene in U.S. corporations by dictating executive compensation and approving or disapproving business management decisions.  Under the new Financial Stability Board, the United States has only one vote. In other words, the group will be largely controlled by European central bankers. My guess is, they will represent themselves, not you and not me and certainly not America.
  • Are these commitments legally binding? Adoption of the FSB was never voted on by the public, either individually or through their legislators. The G20 Summit has been called “a New Bretton Woods,” referring to agreements entered into in 1944 establishing new rules for international trade. But Bretton Woods was put in place by Congressional Executive Agreement, requiring a majority vote of the legislature; and it more properly should have been done by treaty, requiring a two-thirds vote of the Senate, since it was an international agreement binding on the nation. “Bail-in” is not the law yet, but the G20 governments will be called upon to adopt the FSB’s resolution measures when the proposal is finalized after taking comments in 2015. The authority of the G20 has been challenged, but mainly over whether important countries were left out of the mix. The omitted countries may prove to be the lucky ones, having avoided the FSB’s net.
Paul Merrell

Cuomo to Ban Fracking in New York State, Citing Health Risks - NYTimes.com - 0 views

www.nytimes.com/...state-citing-health-risks.html

shared by Paul Merrell on 17 Dec 14 - No Cached
  • Gov. Andrew M. Cuomo’s administration announced on Wednesday that it would ban hydraulic fracturing in New York State because of concerns over health risks, ending years of uncertainty over the controversial method of natural gas extraction.State officials concluded that fracking, as the method is known, could contaminate the air and water and pose inestimable dangers to public health.That conclusion was delivered during a year-end cabinet meeting convened by Mr. Cuomo in Albany. It came amid increased calls by environmentalists to ban fracking, which uses water and chemicals to release natural gas trapped in deeply buried shale deposits.
  • Gov. Andrew M. Cuomo’s administration announced on Wednesday that it would ban hydraulic fracturing in New York State because of concerns over health risks, ending years of uncertainty over the controversial method of natural gas extraction.State officials concluded that fracking, as the method is known, could contaminate the air and water and pose inestimable dangers to public health.That conclusion was delivered during a year-end cabinet meeting convened by Mr. Cuomo in Albany. It came amid increased calls by environmentalists to ban fracking, which uses water and chemicals to release natural gas trapped in deeply buried shale deposits.
  • The question of whether to allow fracking has been one of the most divisive public policy debates in New York in years, pitting environmentalists against others who saw it as a critical way to bring jobs to economically stagnant portions of upstate.
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  • He repeatedly put off making a decision on how to proceed, most recently citing an ongoing — and seemingly never-ending — study by state health officials.On Wednesday, six weeks after Mr. Cuomo won re-election to a second term, the long-awaited health study finally materialized.In a presentation at the cabinet meeting, the acting state health commissioner, Dr. Howard A. Zucker, said the examination had found “significant public health risks” associated with fracking.Holding up scientific studies to animate his arguments, Dr. Zucker listed concerns about water contamination and air pollution, and said there was insufficient scientific evidence to affirm the long-term safety of fracking.Dr. Zucker said his review boiled down to a simple question: Would he want to live in a community that allowed fracking?He said the answer was no.
  • New York has had a de facto ban on the procedure for more than five years, predating Mr. Cuomo’s election. Over the course of his first term, Mr. Cuomo at times sent conflicting signals about how he would proceed.In 2012, Mr. Cuomo flirted with approving a limited program in several struggling Southern Tier counties along New York’s border with Pennsylvania. But later that year, Mr. Cuomo bowed to entreaties from environmental advocates, announcing instead that his administration would start the regulatory process over by beginning a new study to evaluate the health risks.
  • The governor’s uncertain stance on fracking also hurt his standing with some liberal activists. Pledging to ban fracking, a little-known law professor won about a third of the vote in the Democratic primary in September, a strong showing that Mr. Cuomo later attributed in part to support from fracking opponents.Complicating matters, dozens of communities across New York have passed moratoriums and bans on fracking, and in June, the state’s highest court, the Court of Appeals, ruled that towns could use zoning ordinances to ban fracking.Recognizing the sensitivity of the issue, Mr. Cuomo both affirmed the fracking ban on Wednesday and tried to keep some distance from it, saying that he was deferring to the expertise of his health and environmental conservation commissioners.
  • Nevertheless, environmental groups cast the governor as a hero. Michael Brune, the executive director of the Sierra Club, said Mr. Cuomo “set himself apart as a national political leader who stands up for people” over the energy industry.But advocates of fracking accused him of giving in to fear-mongering by environmentalists.
  • Document Health Department Report on Fracking in New York State The Cuomo administration decided to ban hydraulic fracturing after concluding that the method posed inestimable public-health risks.
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