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Paul Merrell

Shining a Spotlight on Shadow Regulation of the Internet: 2016 in Review | Electronic F... - 0 views

www.eff.org/...ght-shadow-regulation-internet

internet internet regulation Web shadow-regulations EFF

shared by Paul Merrell on 06 Jan 17 - No Cached
  • Over the past few years, Internet users have found their voice in the halls of power. Through legal challenges, speaking to legislators, and effective online organizing, we've beat back many attempts to create mechanisms of censorship and strip speakers of their privacy. We defeated the SOPA/PIPA Internet blacklist bills, and the ACTA and TPP agreements, and stood up for net neutrality as a free speech principle. But these victories had a side effect: corporate and government interests who seek to edit the Internet and regulate others' speech have turned to private agreements. These agreements can create restrictions that are as effective as any law, but without the need for approval by a court or parliament. Sometimes they are even initiated by government officials, who offer companies the Hobson's choice of coming up with a "voluntary" solution or submitting to government regulation. This year, we've begun to shine a spotlight on these Shadow Regulations, and hold them to the same high standards as we do for laws.
Gary Edwards

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al ... - 0 views

www.rollingstone.com/...n-naked-short-selling-20120515

Banksters Naked-Short-Selling Overstock.com

shared by Gary Edwards on 17 May 12 - No Cached
  • Gary Edwards on 17 May 12
     
    Incredible.  Take your time reading this because we now have legal evidence of outrageous Bankster criminality.  Read carefully. excerpt: The lawsuit between Overstock and the banks concerned a phenomenon called naked short-selling, a kind of high-finance counterfeiting that, especially prior to the introduction of new regulations in 2008, short-sellers could use to artificially depress the value of the stocks they've bet against. The subject of naked short-selling is a) highly technical, and b) very controversial on Wall Street, with many pundits in the financial press for years treating the phenomenon as the stuff of myths and conspiracy theories. Now, however, through the magic of this unredacted document, the public will be able to see for itself what the banks' attitudes are not just toward the "mythical" practice of naked short selling (hint: they volubly confess to the activity, in writing), but toward regulations and laws in general. "Fuck the compliance area - procedures, schmecedures," chirps Peter Melz, former president of Merrill Lynch Professional Clearing Corp. (a.k.a. Merrill Pro), when a subordinate worries about the company failing to comply with the rules governing short sales. ...................... If this sounds complicated, just focus on this: naked short selling, in essence, is selling stock you do not have. If you don't have to actually locate and borrow stock before you short it, you're creating an artificial supply of stock shares. ................ The process of how banks circumvented federal clearing regulations is highly technical and incredibly difficult to follow. These companies were using obscure loopholes in regulations that allowed them to short companies by trading in shadows, or echoes, of real shares in their stock. They manipulated rules to avoid having to disclose these "failed" trades to regulators. The import of this is that it made it cheaper and easier to bet down the value of a stock
Gary Edwards

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

www.zerohedge.com/...14-forecast-burning-down-house

Banksters

shared by Gary Edwards on 08 Jan 14 - No Cached
  • Gary Edwards on 08 Jan 14
     
    Incredible must read analysis. Take away: the world is going to go "medevil". It's the only way out of this mess. Since the zero hedge layout is so bad, i'm going to post as much of the article as Diigo will allow: Jim Kunstler's 2014 Forecast - Burning Down The House Submitted by Tyler Durden on 01/06/2014 19:36 -0500 Submitted by James H. Kunstler of Kunstler.com , Many of us in the Long Emergency crowd and like-minded brother-and-sisterhoods remain perplexed by the amazing stasis in our national life, despite the gathering tsunami of forces arrayed to rock our economy, our culture, and our politics. Nothing has yielded to these forces already in motion, so far. Nothing changes, nothing gives, yet. It's like being buried alive in Jell-O. It's embarrassing to appear so out-of-tune with the consensus, but we persevere like good soldiers in a just war. Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical "recovery" and the "shale gas miracle" on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations. Life in the USA is like living in a broken-down, cob-jobbed, vermin-infested house that needs to be gutted, disinfected, and rebuilt - with the hope that it might come out of the restoration process retaining the better qualities of our heritage.
Paul Merrell

Why You Should Care About Predatory Shadow Banking | nsnbc international - 0 views

nsnbc.me/...care-predatory-shadow-banking

banksters payday-loans regulation CFPB

shared by Paul Merrell on 02 Feb 15 - No Cached
  • According to the Consumer Financial Protection Bureau (CFPB), the shadow banking industry (SBI) is largely unregulated and functions outside of proper oversight and accountability. The CFPB estimates that the $46 billion payday loan or cash advance industry has no oversight, refuses to give full disclosures of interest and fees involved, and takes an annual percentage of an excess of 300% against borrowers.
  • For the first time the CFPB has suggested regulating the SBI because of their dubious practices and products. The SBI refers to a loan of $500 or less wherein the borrower “provides a personal check dated on their next payday for the full balance or give the lender permission to debit their bank accounts. The total includes charges often ranging from $15 to $30 per $100 borrowed. Interest-only payments, sometimes referred to as rollovers, are common.” The Consumer Federation of America (CFA) counts 32 states in the US that “permit payday loans at triple-digit interest rates, or with no rate cap at all.” Shockingly 80% of payday loans are rolled over within 14 days while an estimated 50% of these loans are “in a sequence at least 10 loans long.” David Silberman, associate director for market research and regulation explained: “Our research has found that what is supposed to be a short-term emergency loan can turn into a long-term and expensive debt trap.”
Paul Merrell

Tomgram: Shamsi and Harwood, An Electronic Archipelago of Domestic Surveillance | TomDi... - 0 views

www.tomdispatch.com/...elago_of_domestic_surveillance

surveillance state civil-liberties shadow-ID watchlists

shared by Paul Merrell on 07 Nov 14 - No Cached
  • Uncle Sam’s Databases of Suspicion A Shadow Form of National ID
  • We do know that the nation’s domestic-intelligence network is massive, including at least 59 federal agencies, over 300 Defense Department units, and approximately 78 state-based fusion centers, as well as the multitude of law enforcement agencies they serve. We also know that local law enforcement agencies have themselves raised concerns about the system’s lack of privacy protections.
  • The SAR database is part of an ever-expanding domestic surveillance system established after 9/11 to gather intelligence on potential terrorism threats. At an abstract level, such a system may seem sensible: far better to prevent terrorism before it happens than to investigate and prosecute after a tragedy. Based on that reasoning, the government exhorts Americans to “see something, say something” -- the SAR program’s slogan. Indeed, just this week at a conference in New York City, FBI Director James Comey asked the public to report any suspicions they have to authorities. “When the hair on the back of your neck stands, listen to that instinct and just tell somebody,” said Comey. And seeking to reassure those who do not want to get their fellow Americans in trouble based on instinct alone, the FBI director added, “We investigate in secret for a very good reason, we don't want to smear innocent people.”
  • ...15 more annotations...
  • There are any number of problems with this approach, starting with its premise.  Predicting who exactly is a future threat before a person has done anything wrong is a perilous undertaking. That’s especially the case if the public is encouraged to report suspicions of neighbors, colleagues, and community members based on a “hair-on-the-back-of-your-neck” threshold. Nor is it any comfort that the FBI promises to protect the innocent by investigating “suspicious” people in secret. The civil liberties and privacy implications are, in fact, truly hair-raising, particularly when the Bureau engages in abusive and discriminatory sting operations and other rights violations.
  • At a fundamental level, suspicious activity reporting, as well as the digital and physical infrastructure of networked computer servers and fusion centers built around it, depends on what the government defines as suspicious.  As it happens, this turns out to include innocuous, First Amendment-protected behavior. As a start, a little history: the Nationwide Suspicious Activity Reporting Initiative was established in 2008 as a way for federal agencies, law enforcement, and the public to report and share potential terrorism-related information. The federal government then developed a list of 16 behaviors that it considered “reasonably indicative of criminal activity associated with terrorism.” Nine of those 16 behaviors, as the government acknowledges, could have nothing to do with criminal activity and are constitutionally protected, including snapping photographs, taking notes, and “observation through binoculars.”
  • Under federal regulations, the government can only collect and maintain criminal intelligence information on an individual if there is a “reasonable suspicion” that he or she is “involved in criminal conduct or activity and the information is relevant to that criminal conduct or activity.” The SAR program officially lowered that bar significantly, violating the federal government’s own guidelines for maintaining a “criminal intelligence system.” There’s good reason for, at a minimum, using a reasonable suspicion standard. Anything less and it’s garbage in, garbage out, meaning counterterrorism “intelligence” databases become anything but intelligent.
  • Law enforcement officials, including the Los Angeles Police Department’s top counterterrorism officer, have themselves exhibited skepticism about suspicious activity reporting (out of concern with the possibility of overloading the system). In 2012, George Washington University’s Homeland Security Policy Institute surveyed counterterrorism personnel working in fusion centers and in a report generally accepting of SARs noted that the program had “flooded fusion centers, law enforcement, and other security outfits with white noise,” complicating “the intelligence process” and distorting “resource allocation and deployment decisions.” In other words, it was wasting time and sending personnel off on wild goose chases.
  • A few months later, a scathing report from the Senate subcommittee on homeland security described similar intelligence problems in state-based fusion centers. It found that Department of Homeland Security (DHS) personnel assigned to the centers “forwarded ‘intelligence’ of uneven quality -- oftentimes shoddy, rarely timely, sometimes endangering citizens’ civil liberties and Privacy Act protections... and more often than not unrelated to terrorism.”
  • yet another burgeoning secret database that the federal government calls its “consolidated terrorism watchlist.” Inclusion in this database -- and on government blacklists that are generated from it -- can bring more severe repercussions than unwarranted law enforcement attention. It can devastate lives.
  • As of August 2013, there were approximately 47,000 people, including 800 U.S. citizens and legal permanent residents like Mashal, on that secretive no-fly list, all branded as “known or suspected terrorists.” All were barred from flying to, from, or over the United States without ever being given a reason why. On 9/11, just 16 names had been on the predecessor “no transport” list. The resulting increase of 293,650% -- perhaps more since 2013 -- isn’t an accurate gauge of danger, especially given that names are added to the list based on vague, broad, and error-prone standards.
  • There is hope, however. In August, four years after the ACLU filed a lawsuit on behalf of 13 people on the no-fly list, a judge ruled that the government’s redress system is unconstitutional. In early October, the government notified Mashal and six others that they were no longer on the list. Six of the ACLU’s clients remain unable to fly, but at least the government now has to disclose just why they have been put in that category, so that they can contest their blacklisting. Soon, others should have the same opportunity.
  • The No Fly List is only the best known of the government’s web of terrorism watchlists. Many more exist, derived from the same master list.  Currently, there are more than one million names in the Terrorist Identities Datamart Environment, a database maintained by the National Counterterrorism Center. This classified source feeds the Terrorist Screening Database (TSDB), operated by the FBI’s Terrorist Screening Center. The TSDB is an unclassified but still secret list known as the “master watchlist.” containing what the government describes as “known or suspected terrorists,” or KSTs.
  • Nothing encapsulates the post-9/11, Alice-in-Wonderland inversion of American notions of due process more strikingly than this “blacklist first, innocence later... maybe” mindset. The Terrorist Screening Database is then used to fill other lists. In the context of aviation, this means the no-fly list, as well as the selectee and expanded selectee lists. Transportation security agents subject travelers on the latter two lists to extra screenings, which can include prolonged and invasive interrogation and searches of laptops, phones, and other electronic devices. Around the border, there’s the State Department’s Consular Lookout and Support System, which it uses to flag people it thinks shouldn’t get a visa, and the TECS System, which Customs and Border Protection uses to determine whether someone can enter the country.
  • According to documents recently leaked to the Intercept, as of August 2013 that master watchlist contained 680,000 people, including 5,000 U.S. citizens and legal permanent residents. The government can add people’s names to it according to a shaky “reasonable suspicion” standard. There is, however, growing evidence that what’s “reasonable” to the government may only remotely resemble what that word means in everyday usage. Information from a single source, even an uncorroborated Facebook post, can allow a government agent to watchlist an individual with virtually no outside scrutiny. Perhaps that’s why 40% of those on the master watchlist have “no recognized terrorist group affiliation,” according to the government’s own records.
  • Inside the United States, no watchlist may be as consequential as the one that goes by the moniker of the Known or Appropriately Suspected Terrorist File. The names on this blacklist are shared with more than 17,000 state, local, and tribal police departments nationwide through the FBI’s National Crime Information Center (NCIC). Unlike any other information disseminated through the NCIC, the KST File reflects mere suspicion of involvement with criminal activity, so law enforcement personnel across the country are given access to a database of people who have secretly been labeled terrorism suspects with little or no actual evidence, based on virtually meaningless criteria.
  • This opens up the possibility of increased surveillance and tense encounters with the police, not to speak of outright harassment, for a large but undivulged number of people. When a police officer stops a person for a driving infraction, for instance, information about his or her KST status will pop up as soon a driver’s license is checked.  According to FBI documents, police officers who get a KST hit are warned to “approach with caution” and “ask probing questions.” When officers believe they’re about to go face to face with a terrorist, bad things can happen. It’s hardly a stretch of the imagination, particularly after a summer of police shootings of unarmed men, to suspect that an officer approaching a driver whom he believes to be a terrorist will be quicker to go for his gun. Meanwhile, the watchlisted person may never even know why his encounters with police have taken such a peculiar and menacing turn. According to the FBI's instructions, under no circumstances is a cop to tell a suspect that he or she is on a watchlist.
  • And once someone is on this watchlist, good luck getting off it. According to the government’s watchlist rulebook, even a jury can’t help you. “An individual who is acquitted or against whom charges are dismissed for a crime related to terrorism,” it reads, “may nevertheless meet the reasonable standard and appropriately remain on, or be nominated to, the Terrorist Watchlist.” No matter the verdict, suspicion lasts forever.
  • The SARs program and the consolidated terrorism watchlist are just two domestic government databases of suspicion. Many more exist. Taken together, they should be seen as a new form of national ID for a growing group of people accused of no crime, who may have done nothing wrong, but are nevertheless secretly labeled by the government as suspicious or worse. Innocent until proven guilty has been replaced with suspicious until determined otherwise. Think of it as a new shadow system of national identification for a shadow government that is increasingly averse to operating in the light. It’s an ID its “owners” don’t carry around with them, yet it’s imposed on them whenever they interact with government agents or agencies. It can alter their lives in disastrous ways, often without their knowledge. And they could be you. If this sounds dystopian, that’s because it is.
Paul Merrell

Keeping Dark Money in the Shadows - WhoWhatWhy - 0 views

whowhatwhy.org/...ping-dark-money-in-the-shadows

Auction 2016 dark-money legislation

shared by Paul Merrell on 01 Jul 15 - No Cached
  • With the Supreme Court knocking down regulations with a wrecking ball, the FEC out of commission, and an election heating up that will likely redefine the term “big money,” there are few avenues left for regulation of American elections. And now, Congress is set to close one off.On June 17, the House Appropriations Committee passed 2016 Financial Services and General Government Appropriations bill including a collection of provisions that ensure that the so-called “dark money” of elections—money that passes through supposedly non-political social welfare nonprofits, such as the Koch Brothers’ Crossroads GPS or the League of Conservation Voters, and is therefore free from disclosure—remains very much dark.Section 129 of the bill prevents the IRS from taking any action to investigate whether these social welfare groups are acting exclusively for social welfare; Section 625 prevents the SEC from requiring disclosure of political donations for publicly traded companies; Section 735 prevents a rule requiring that government contractors disclose their contributions to political groups, nonprofits, and trade unions.
  • Rules like these are aimed at preventing what some campaign watchdog groups refer to as the dark money system. Though Federal Election Commission regulations require disclosure of all donations to political candidates, 501(c)(4) groups—groups determined by the IRS to be for social welfare, not political campaigning, and exempt from taxes and donor disclosure—can be used as a workaround. Corporations and individuals do not have to disclose their donations to these groups, meaning that these groups can make donations to political campaigns using money donated by others without those original donors revealing it.An executive order requiring disclosure rules of this sort had been one of the last hopes for election watchdogs looking for a way to keep campaign finance under control in the coming election. This action by the House Appropriations—part of a large government funding bill for which passage will likely not hinge on such small sections—has left them even more enraged at the state of current campaign finance regulations.
Gary Edwards

ACTA Open Must Read Analysis: Why Markets Are Still Falling . . . The Shadow Financial ... - 0 views

www.siliconvalleywatcher.com/...analysis_why_ma.php

acta foremski cds credit-default-swaps finacial-crisis politics economy

shared by Gary Edwards on 24 Nov 08 - Cached
  • evidence suggests more credit default swaps are traded in London than in the United States according to the US Federal Reserve, so US action alone cannot address perceived problems.
  • As corporations, home owners and credit card holders go into default -- stop making payments -- many financial institutions are being hit twice on their balance sheet -- once by the bad loan and then by the associated CDS default or obligation.
  • CDS trading has expanded 100-fold since 2001 as financial institutions including insurance companies and hedge funds as well as investors have used the contracts to protect against bond losses and speculate on companies' ability to repay debt.
  • ...4 more annotations...
  • Chicago Mercantile Exchange
  • Lawmakers are also considering the introduction of new regulations to curb CDS abuse as engines of speculation, but many financial experts are also encouraging the creation of public exchanges for these shadow markets. An exchange would establish an arms length price. As that price was transparent and moved, the market would see that a credit was deteriorating. A centralised clearing market would help shine a clear light on these transactions and since every trade would be backed up by the members of the clearing house, chances of default would greatly be reduced.
  • Unlike most financial markets, credit default swaps are unregulated and at USD 54.6 trillion, they are one of the largest unregulated markets in the world.
  • In response to the coming derivatives and deleveraging Tsunami, which has already begun, the world GDP may have to shrink drastically -- some estimates suggest between 30% and 50% -- over the coming years of The Great Unwind. This is the severe recession the markets fear as they go into free fall.
  • Gary Edwards on 24 Nov 08
     
    Why are Markets still Falling? The Tsunami caused by Derivatives and Deleveraging The invisible elephant in the room causing continuous falls in global financial markets is the link to the privately traded Credit Default Swaps (CDS) and the financial uncertainty they have created whilst synchronised deleveraging takes place across the world. ... Credit default swaps are unregulated financial derivatives which act as debt insurance on risky assets like mortgages, corporate and government bonds. But unlike a normal insurance policy, financial institutions that sell credit default swaps are not required to have enough funds in reserve should those risky loans turn bad. Since the US Congress in 2000 declined to regulate these contracts as it does insurance, the companies that guarantee the assets are not required by law to keep enough capital on hand to pay them off in the event of a default.
Paul Merrell

As Wall Street Sinks Global Markets, China's Economic Policies Build Independence & Imm... - 0 views

www.mintpressnews.com/...237608

war & peace China economy

shared by Paul Merrell on 15 Feb 18 - No Cached
  • The recent economic “correction” in the U.S. markets, which saw stocks drop back down from recent record-highs, has begun to spread to the east, reaching the stock exchanges in Tokyo, Taiwan and Shanghai. While all three of these markets depend, to some extent, on the performance of Wall Street, one is likely to emerge stronger as the U.S. market corrects itself. Many Western economic analysts — such as those at the pillar of U.S. financial journalism, Bloomberg — have continued to predict future financial downturns would be caused by Chinese debt, or the country’s massive “shadow” economy (or, more specifically, low level loans that aren’t tightly regulated by the central government). This latest downturn, however, shows once again that Wall Street is still the primary factor in sinking global markets. China has been faced with — and continued to grow throughout — a previous U.S.-triggered global recession just under a decade ago. While the current condition of the markets is nothing like the end of 2008, there is still the same fear in the West that China is somehow on the brink of catastrophe. Yet China pulled through the Great Recession, despite a huge decrease in demand for Chinese export goods. Beijing presided over GDP growth only falling below 8 percent in the last quarter of 2008 and first of 2009 and made a faster recovery than any Western nation.
  • China is obviously in a position much different now from that of 2008. Now — as a clear competitor with the U.S. in key economic sectors such as cutting-edge technology, and playing a unifying role for a large portion of the global population — Beijing is making even more major domestic economic reforms and preparing to project its new prosperity outward. In order to better understand how China is likely not just to survive any fluctuations in the U.S. market but also to thrive, it is best to understand both how China managed to recover from the last recession faster than any other country and the new economic policies of President Xi Jinping, which will harness the power of the world’s largest planned economy in its march into the future.
Paul Merrell

Spy Chief James Clapper Wins Rosemary Award - 0 views

www2.gwu.edu/...20140324

surveillance state NSA Rosemary-Award Obama Clapper Alexander

shared by Paul Merrell on 24 Mar 14 - No Cached
  • Director of National Intelligence James Clapper has won the infamous Rosemary Award for worst open government performance in 2013, according to the citation published today by the National Security Archive at www.nsarchive.org. Despite heavy competition, Clapper's "No, sir" lie to Senator Ron Wyden's question: "Does the NSA collect any type of data at all on millions or hundreds of millions of Americans?" sealed his receipt of the dubious achievement award, which cites the vastly excessive secrecy of the entire U.S. surveillance establishment. The Rosemary Award citation leads with what Clapper later called the "least untruthful" answer possible to congressional questions about the secret bulk collection of Americans' phone call data. It further cites other Clapper claims later proved false, such as his 2012 statement that "we don't hold data on U.S. citizens." But the Award also recognizes Clapper's fellow secrecy fetishists and enablers, including:
  • Gen. Keith Alexander, director of the NSA, for multiple Rose Mary Woods-type stretches, such as (1) claiming that the secret bulk collection prevented 54 terrorist plots against the U.S. when the actual number, according to the congressionally-established Privacy and Civil Liberties Oversight Board (PCLOB) investigation (pp. 145-153), is zero; (2) his 2009 declaration to the wiretap court that multiple NSA violations of the court's orders arose from differences over "terminology," an explanation which the chief judge said "strains credulity;" and (3) public statements by the NSA about its programs that had to be taken down from its website for inaccuracies (see Documents 78, 85, 87 in The Snowden Affair), along with public statements by other top NSA officials now known to be untrue (see "Remarks of Rajesh De," NSA General Counsel, Document 53 in The Snowden Affair).
  • Robert Mueller, former FBI director, for suggesting (as have Gen. Alexander and many others) that the secret bulk collection program might have been able to prevent the 9/11 attacks, when the 9/11 Commission found explicitly the problem was not lack of data points, but failing to connect the many dots the intelligence community already had about the would-be hijackers living in San Diego. The National Security Division lawyers at the Justice Department, for misleading their own Solicitor General (Donald Verrilli) who then misled (inadvertently) the U.S. Supreme Court over whether Justice let defendants know that bulk collection had contributed to their prosecutions. The same National Security Division lawyers who swore under oath in the Electronic Frontier Foundation's Freedom of Information Act lawsuit for a key wiretap court opinion that the entire text of the opinion was appropriately classified Top Secret/Sensitive Compartmented Information (release of which would cause "exceptionally grave damage" to U.S. national security). Only after the Edward Snowden leaks and the embarrassed governmental declassification of the opinion did we find that one key part of the opinion's text simply reproduced the actual language of the 4th Amendment to the U.S. Constitution, and the only "grave damage" was to the government's false claims.
  • ...9 more annotations...
  • President Obama for his repeated misrepresentations about the bulk collection program (calling the wiretap court "transparent" and saying "all of Congress" knew "exactly how this program works") while in effect acknowledging the public value of the Edward Snowden leaks by ordering the long-overdue declassification of key documents about the NSA's activities, and investigations both by a special panel and by the Privacy and Civil Liberties Oversight Board. The PCLOB directly contradicted the President, pointing out that "when the only means through which legislators can try to understand a prior interpretation of the law is to read a short description of an operational program, prepared by executive branch officials, made available only at certain times and locations, which cannot be discussed with others except in classified briefings conducted by those same executive branch officials, legislators are denied a meaningful opportunity to gauge the legitimacy and implications of the legal interpretation in question. Under such circumstances, it is not a legitimate method of statutory construction to presume that these legislators, when reenacting the statute, intended to adopt a prior interpretation that they had no fair means of evaluating." (p. 101)
  • Even an author of the Patriot Act, Rep. Jim Sensenbrenner (R-WI), was broadsided by the revelation of the telephone metadata dragnet. After learning of the extent of spying on Americans that his Act unleashed, he wrote that the National Security Agency "ignored restrictions painstakingly crafted by lawmakers and assumed plenary authority never imagined by Congress" by cloaking its actions behind the "thick cloud of secrecy" that even our elected representatives could not breech. Clapper recently conceded to the Daily Beast, "I probably shouldn't say this, but I will. Had we been transparent about this [phone metadata collection] from the outset … we wouldn't have had the problem we had." The NSA's former deputy director, John "Chris" Inglis, said the same when NPR asked him if he thought the metadata dragnet should have been disclosed before Snowden. "In hindsight, yes. In hindsight, yes." Speaking about potential (relatively minimal) changes to the National Security Agency even the president acknowledged, "And all too often new authorities were instituted without adequate public debate," and "Given the unique power of the state, it is not enough for leaders to say: Trust us. We won't abuse the data we collect. For history has too many examples when that trust has been breached." (Exhibit A, of course, is the NSA "watchlist" in the 1960's and 1970's that targeted not only antiwar and civil rights activists, but also journalists and even members of Congress.)
  • The Archive established the not-so-coveted Rosemary Award in 2005, named after President Nixon's secretary, Rose Mary Woods, who testified she had erased 18-and-a-half minutes of a crucial Watergate tape — stretching, as she showed photographers, to answer the phone with her foot still on the transcription pedal. Bestowed annually to highlight the lowlights of government secrecy, the Rosemary Award has recognized a rogue's gallery of open government scofflaws, including the CIA, the Treasury Department, the Air Force, the FBI, the Federal Chief Information Officers' Council, and the career Rosemary leader — the Justice Department — for the last two years. Rosemary-winner James Clapper has offered several explanations for his untruthful disavowal of the National Security Agency's phone metadata dragnet. After his lie was exposed by the Edward Snowden revelations, Clapper first complained to NBC's Andrea Mitchell that the question about the NSA's surveillance of Americans was unfair, a — in his words — "When are you going to stop beating your wife kind of question." So, he responded "in what I thought was the most truthful, or least untruthful, manner by saying 'no.'"
  • After continuing criticism for his lie, Clapper wrote a letter to Chairman of the Senate Select Committee on Intelligence Dianne Feinstein, now explaining that he misunderstood Wyden's question and thought it was about the PRISM program (under Section 702 of the Foreign Intelligence Surveillance Act) rather than the telephone metadata collection program (under Section 215 of the Patriot Act). Clapper wrote that his staff "acknowledged the error" to Senator Wyden soon after — yet he chose to reject Wyden's offer to amend his answer. Former NSA senior counsel Joel Brenner blamed Congress for even asking the question, claiming that Wyden "sandbagged" Clapper by the "vicious tactic" of asking "Does the NSA collect any type of data at all on millions or hundreds of millions of Americans?" Meanwhile, Steve Aftergood of the Federation of American Scientists countered that "it is of course wrong for officials to make false statements, as DNI Clapper did," and that in fact the Senate Intelligence Committee "became complicit in public deception" for failing to rebut or correct Clapper's statement, which they knew to be untruthful. Clapper described his unclassified testimony as a game of "stump the chump." But when it came to oversight of the National Security Agency, it appears that senators and representatives were the chumps being stumped. According to Representative Justin Amash (R-Mich), the House Intelligence Committee "decided it wasn't worthwhile to share this information" about telephone metadata surveillance with other members of Congress. Classified briefings open to the whole House were a "farce," Amash contended, often consisting of information found in newspapers and public statutes.
  • The Emmy and George Polk Award-winning National Security Archive, based at the George Washington University, has carried out thirteen government-wide audits of FOIA performance, filed more than 50,000 Freedom of Information Act requests over the past 28 years, opened historic government secrets ranging from the CIA's "Family Jewels" to documents about the testing of stealth aircraft at Area 51, and won a series of historic lawsuits that saved hundreds of millions of White House e-mails from the Reagan through Obama presidencies, among many other achievements.
  • Director Clapper joins an undistinguished list of previous Rosemary Award winners: 2012 - the Justice Department (in a repeat performance, for failure to update FOIA regulations for compliance with the law, undermining congressional intent, and hyping its open government statistics) 2011- the Justice Department (for doing more than any other agency to eviscerate President Obama's Day One transparency pledge, through pit-bull whistleblower prosecutions, recycled secrecy arguments in court cases, retrograde FOIA regulations, and mixed FOIA responsiveness) 2010 - the Federal Chief Information Officers' Council (for "lifetime failure" to address the crisis in government e-mail preservation) 2009 - the FBI (for having a record-setting rate of "no records" responses to FOIA requests) 2008 - the Treasury Department (for shredding FOIA requests and delaying responses for decades) 2007 - the Air Force (for disappearing its FOIA requests and having "failed miserably" to meet its FOIA obligations, according to a federal court ruling) 2006 - the Central Intelligence Agency (for the biggest one-year drop-off in responsiveness to FOIA requests yet recorded).   ALSO-RANS The Rosemary Award competition in 2013 was fierce, with a host of government contenders threatening to surpass the Clapper "least untruthful" standard. These secrecy over-achievers included the following FOI delinquents:
  • Admiral William McRaven, head of the Special Operations Command for the raid that killed Osama Bin Laden, who purged his command's computers and file cabinets of all records on the raid, sent any remaining copies over to CIA where they would be effectively immune from the FOIA, and then masterminded a "no records" response to the Associated Press when the AP reporters filed FOIA requests for raid-related materials and photos. If not for a one-sentence mention in a leaked draft inspector general report — which the IG deleted for the final version — no one would have been the wiser about McRaven's shell game. Subsequently, a FOIA lawsuit by Judicial Watch uncovered the sole remaining e-mail from McRaven ordering the evidence destruction, in apparent violation of federal records laws, a felony for which the Admiral seems to have paid no price. Department of Defense classification reviewers who censored from a 1962 document on the Cuban Missile Crisis direct quotes from public statements by Soviet Premier Nikita Khrushchev. The quotes referred to the U.S. Jupiter missiles in Turkey that would ultimately (and secretly) be pulled out in exchange for Soviet withdrawal of its missiles in Cuba. The denials even occurred after an appeal by the National Security Archive, which provided as supporting material the text of the Khrushchev statements and multiple other officially declassified documents (and photographs!) describing the Jupiters in Turkey. Such absurd classification decisions call into question all of the standards used by the Pentagon and the National Declassification Center to review historical documents.
  • Admiral William McRaven memo from May 13, 2011, ordering the destruction of evidence relating to the Osama bin Laden raid. (From Judicial Watch)
  • The Department of Justice Office of Information Policy, which continues to misrepresent to Congress the government's FOIA performance, while enabling dramatic increases in the number of times government agencies invoke the purely discretionary "deliberative process" exemption. Five years after President Obama declared a "presumption of openness" for FOIA requests, Justice lawyers still cannot show a single case of FOIA litigation in which the purported new standards (including orders from their own boss, Attorney General Eric Holder) have caused the Department to change its position in favor of disclosure.
Paul Merrell

Emergency surveillance law to be brought in with cross-party support | World news | the... - 0 views

www.theguardian.com/...ed-through-cross-party-support

surveillance state UK GCHQ phone email metadata

shared by Paul Merrell on 10 Jul 14 - No Cached
  • Controversial emergency laws will be introduced into the Commons next Monday to reinforce the powers of security services to require internet and phone companies to keep records of their customers' emails and calls.The move follows private talks over the past week and the laws will have the support of Labour and the Liberal Democrats on the basis that there will be a sunset clause and a new board to oversee the functioning of the powers.Details are due to be announced at a Downing Street press conference on Thursday morning.
  • he laws will expire in 2016, requiring fresh legislation after the election. The Regulation of Investigatory Powers Act will be reviewed between now and 2016 to make recommendations for how it could be reformed and updated. Lib Dems insist the new legislation does not represent an extension of existing surveillance powers or the introduction of the snooper's charter sought by the Home Office and long opposed by the deputy prime minister, Nick Clegg.There will be no power to look at the content of phone calls, only location, date and the phone numbers. Government sources say they have been forced to act due to European court of justice ruling in April saying the current laws invaded individual privacy. The government says if there had been no new powers there would have been no obligation on phone and internet companies to keep records if there was a UK court challenge to the retention of data.
  • No 10 said the ECJ rulings had struck down regulations to retain communications data for law enforcement purposes for up to 12 months. Unless they have a business reason to hold this data, internet and phone companies will start deleting it, which has serious consequences for investigations, which can take many months and which rely on retrospectively accessing data for evidential purposes.Ministers added that some companies had already been calling for a clearer legal frameworkLabour backbencher Tom Watson described the move as a "stitch-up". He said: "There has been a deal and it had been railroaded through so my advice to MPs is there is no point turning up for work next week because there has been a political deal." He said he had not seen the detail of the legislation and promised to vote against the timetable.He added: "The government was aware of this ECJ ruling six weeks ago and what they are doing is railroading this through. No one in civil society has got a chance to be consulted." The shadow cabinet had not seen the proposals until this morning, he added.
Paul Merrell

If Elizabeth Warren Were Running for President, This Would Be Her Agenda | The Nation - 0 views

www.thenation.com/...ch-how-finish-financial-reform

banksters-reform regulation legislation warren Auction 2016

shared by Paul Merrell on 18 Apr 15 - No Cached
  • If Elizabeth Warren ran for president, a key part of her campaign—if not the centerpiece—would likely involve how to restructure the financial sector in a less dangerous and more productive way. Dodd-Frank was by many accounts a good start, but it’s clear the economy is still over-financialized and too-big-to-fail banks continue to pose an existential threat. Warren isn’t running for president, but she unveiled that exact agenda in a sweeping speech Wednesday in a conference at the Levy Institute in Washington. It advocated an array of specific, often ambitious policy proposals, many of which have circulated in Washington for years and that Warren, at various times, has already called for. But tied together in one place, and packaged as a clear call for structural and not just technocratic changes, a blueprint emerged for how Warren thinks Democrats should attack continued financial reform. Whether purposeful or not, the speech was timed exactly to start of Hillary Clinton’s 2016 presidential campaign.
  • Her ideas fit into four basic categories: first, getting tougher on bad financial actors, particularly big banks, and presenting them with actual legal accountability for malfeasance. Second, Warren outlined how to change the basic structure of the country’s largest financial institutions so their very existence doesn’t threaten the economy nor taxpayer money via inevitable bailouts. Third, she outlined how to change tax policies that incentivize financial risk-taking and instability. And finally, Warren called for tougher regulations on the shadow-banking sector that was a huge contributor to the 2008 crash and which remained largely untouched by Dodd-Frank.
  • Paul Merrell on 18 Apr 15
     
    Nice set of points for financial reform activists to use in forcing Hillary to take positions.
Paul Merrell

Snooper's charter has practically zero chance of becoming law, say senior MPs | UK news... - 0 views

www.guardian.co.uk/...oopers-charter-zero-chance-law

surveillance state UK EU NSA-blowback cloud computing

shared by Paul Merrell on 27 Jun 13 - No Cached
  • The chances of Theresa May reintroducing her "snooper's charter" communications data bill are practically zero in the wake of the Guardian's disclosures on the scale of internet surveillance, leading Tory and Labour civil liberties campaigners have said.David Davis, a former contender for Conservative leadership, and Tom Watson, the Labour deputy chair, both said on Thursday they felt there had been a change in the atmosphere at Westminster compared with the "great rush" to legislate in the immediate aftermath of the Woolwich murder of Drummer Lee Rigby.Both MPs said the disclosure of the mass harvesting of personal communications, including internet data, by the American National Security Agency and Britain's eavesdropping agency, GCHQ, had shown that the existing UK regulatory framework was completely ineffective.Davis said in particular that GCHQ's Tempora operation, which harvests global phone and internet traffic by tapping into the transatlantic fibre-optic cables, had "put up a big red flag" indicating it was time to think again from scratch about the legal oversight arrangements.
  • He said it was necessary to look at ways of rewriting the Regulation of Investigatory Powers Act 2000, which sets out the legal oversight arrangements for the interception and surveillance of communications.But the former shadow home secretary and staunch Eurosceptic also praised the efforts of Viviane Reding, the EU commissioner for justice, who wrote to the foreign secretary, William Hague, on Wednesday giving him until the end of the week to answer the charge that the fundamental rights of citizens across Europe were being flouted."I hope that Viviane Reding keeps up the pressure. This is the only time you will hear me say that the European Union might be the answer," said Davis.Watson said he shared Davis's analysis of the poor prospects for the reintroduction of May's communications data bill, which would require internet and phone companies to store for up to 12 months data tracking everyone's use of email, phone and internet.
  • The meeting heard from surveillance experts Casper Bowden, a former chief privacy adviser to Microsoft, and solicitor/advocate, Simon McKay. Bowden said a huge debt was owed to Snowden, who had made the most important disclosures about surveillance for more than 25 years.He said the disclosures had serious implications for the corporate and individual stampede towards the use of "cloud computing" storage, much of which was housed in the US. He said that there was a real danger now that Britain would be left in an exposed position, with the rest of Europe not willing to allow their data to be stored through the UK. "Keep your cloudbase close and local and keep it in your jurisdiction," he said, adding that encryption was very limited as a defence.Bowden, who has worked as an adviser to the EU on its new data protection directive, which has yet to come into force principally because of British opposition, said he had secured an amendment giving protection for whistleblowers.He had also argued for a warning "pop-up" to be required when data was being transferred outside the EU's borders.
  • Paul Merrell on 27 Jun 13
     
    Finally, acknowledgement that the growth of the cloud computing industry will likely be affected greatly by disclosures of widespread US and UK storage and surveillance of digital data. But will this be enough to turn cloud computing companies into staunch advocates of reining in the NSA and GCHQ? Note that the emerging E.U. position creates an economic advantage for cloud computing companies with their server farms located in the E.U. (likely excluding the UK). 
Paul Merrell

Repo, Baby, Repo » CounterPunch: Tells the Facts, Names the Names - 1 views

www.counterpunch.org/...repo-baby-repo

financial-collapse banksters repo-market federal-reserve

shared by Paul Merrell on 24 Oct 13 - No Cached
  • Subprime mortgages did not cause the financial crisis, nor did the housing bubble or Lehman Brothers. The financial crisis originated in a corner of the shadow banking system called the repo market. That’s where the bank run occurred that froze the secondary market, sent prices on mortgage-backed assets plunging, and pushed the financial system into a death spiral. In the Great Crash of 2008, repo was ground zero, the epicenter of the global catastrophe. As analyst David Weidner noted in the Wall Street Journal, “The repo market wasn’t just a part of the meltdown. It was the meltdown.” Regrettably, the Federal Reserve’s nontraditional monetary policies (ZIRP and QE) have succeeded in restoring the repo market to it’s precrisis level of activity, but without implementing any of the changes that would have made the system safer. Repo is as vulnerable and crisis-prone today as it was when the French bank PNB Paribas stopped redemptions in its off-balance sheet operations in 2007 kicking off the tumultuous bank run that would eventually implode the entire system and push the economy into the deepest slump since the Great Depression. By failing to rein in repo, the Fed has ensured that financial crises will be a regular feature in the future occurring every 15 or 20 years as was the case before banks were more strictly regulated and government backstops were put in place. Repo returns us to Wild West “anything goes” banking.
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