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Paul Merrell

The Fed caused 93% of the entire stock market's move since 2008: Analysis - Yahoo Finance - 0 views

  • The bull market just celebrated its seventh anniversary. But the gains in recent years – as well as its recent sputter – may be explained by just one thing: monetary policy. The factors behind that and previous bubbles can be illuminated using simple visual analysis of a chart. The S&P 500 (^GSPC) doubled in value from November 2008 to October 2014, coinciding with the Federal Reserve Bank’s “quantitative easing” asset purchasing program. After three rounds of “QE,” where the Fed poured billions of dollars into the bond market monthly, the Fed’s balance sheet went from $2.1 trillion to $4.5 trillion. This isn’t just a spurious correlation, according to economist Brian Barnier, principal at ValueBridge Advisors and founder of FedDashboard.com. What’s more, he says previous bull runs in the market lasting several years can also be explained by single factors each time.
  • Barnier first compiled data on the total value of publicly-traded U.S. stocks since 1950. He then divided it by another economic factor, graphing the ratio for each one. If the chart showed horizontal lines stretching over long periods of time, that meant both the numerator (stock values) and the denominator (the other factor) were moving at the same rate. “That's the beauty of the visual analysis,” he said. “All we have to do is find straight, stable lines and we know we've got something good.”
  • Scouring hundreds of different factors, Barnier ultimately whittled it down to just four factors: GDP data five years into the future, household and nonprofit liabilities, open market paper, and the Fed’s assets. At different stretches of time, just one of those was the single biggest driver of the market and was confirmed with regression analyses.
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  • He isolated each factor in a separate chart, calling them “eras” for the stock market. From after World War II until the mid-1970s, future GDP outlook explained 90% of the stock market’s move, according to statistical analysis by Barnier. GDP growth lost its sway on the market in the early 1970s with the rise of credit cards and consumer debt. Household liabilities grew with plastic first, followed by home mortgages, until the real estate crash of the early 1990s. Barnier’s analysis shows debt explained 95% of the entire market’s move during this time. The period between the mid- to late-1990s until 2000 was, of course, marked by the tech bubble. While stocks took much of the headline, that time also saw heightened activity in the commercial paper market. Startups and young companies sought cash beyond their stratospheric share values to fund their operations. Barnier’s regression analysis shows commercial paper increases could explain as much as 97% of the tech bubble. Shortly after the tech bubble burst, a housing bubble began, once more in the form of mortgages and other debt. That drove 94% of the market’s move for the first several years of the current century.
  • As the financial crisis reached a fevered pitch in 2008, the Federal Reserve took to flooding the financial market with dollars by buying up bonds. Simultaneously, interest rates fell dramatically, as bond yields move in the opposite direction of bond prices. Barnier sees the Fed as responsible for over 93% of the market from the start of QE until today. During the first half of 2013, the Fed caused the entire market’s growth, he said. Since the Fed stopped buying bonds in late 2014, the S&P 500 has been batted around in a 16% range and is more or less where it was when the QE came to a close. Investors need to anticipate the next driver, said Barnier. “Quantitative easing has stopped, but now we're into the interest rate world,” he said. “That means for any investor trying to figure out what to do, step one is starting with a macro strategy.”
Paul Merrell

That 'Valuable Intel' From The Yemen Raid? It Was 10 Years Old : The Two-Way : NPR - 0 views

  • A terrorist video released on Friday by the Pentagon to show what it called intelligence gleaned by the recent raid in Yemen actually was made about 10 years ago, it acknowledged. Defense officials canceled a briefing they had called to discuss the value of the information recovered from Yemen and took the video off the website of the U.S. Central Command. They circulated clips from a video that showed how to prepare explosives without knowing it had already been public. However, Navy Capt. Jeff Davis, a Defense Department spokesman, stuck by the Pentagon's main argument: Al-Qaida in the Arabian Peninsula remains dangerous and wants to recruit and train people to attack the West.
  • "Even though the video is old, it shows their intent," he told reporters. But defense officials declined to release any other, newer intelligence they said was in computers recovered by the American and allied special operations troops who attacked the Yemeni town. The messaging kerfuffle turned an ongoing counterattack into a damp squib. Critics in Congress and within the national security establishment — speaking without identification in press reports — have called the Yemen raid botched. They accused the White House of hurrying troops into an operation with bad intelligence, or pressing commanders to go ahead with a raid after it lost its element of surprise. Spokesman Sean Spicer began to return fire on Thursday: The initial planning began in November, he said, and then the military and intelligence community worked to refine it in the succeeding months through the transition. With a strong case for action, Spicer said, the only thing needed was a moonless night in Yemen, which fell after President Trump's inauguration. Trump ultimately authorized it on Jan. 26. Article continues after sponsorship SEAL Team Six and its partners attacked the AQAP target early on Sunday, as NPR's Alice Fordham and Tom Bowman have detailed. The U.S. says some 14 terrorists were killed in the operation, which also claimed the life of an unknown number of civilians — including women and children — and Navy Chief Special Warfare Operator William Owens. An American MV-22 Osprey aircraft also crash-landed, injuring its crew, and U.S. troops went on to deliberately destroy it to keep it from being compromised.
Paul Merrell

Source: Paul 'Republican No More,' Not Ruling Out Third-Party Run - 0 views

  • Upset by how the Republican Party establishment “disrespected” them during the Republican National Convention, over 300 Ron Paul supporters joined a conference call on Sunday night to discuss plans to urge Paul to run as a third-party candidate on the Libertarian Party ticket.  Speculation about Paul’s intentions will intensify even more because Paul will appear on NBC’s “The Tonight Show” with Jay Leno on Tuesday night to make an announcement, presumably about whether he will make a third-party run or support Libertarian Party candidate Gary Johnson.
Gary Edwards

Banking Fraud/ Synchronicities - Coast to Coast AM - 0 views

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    I listened to this show last night.  The interview with Jerome Corsi was something else.  He covered two topics; the bankster fraud behind the $2 Trillion dollar business known as the Mexican drug cartel.  And, the Obama effort to provoke the American people into war with Iran.   The Bankster fraud involves HSBC and a courageous whistle blower named John Cruz.  Includes volumes of secret tape recordings and documents that Mr. Cruz lifted.  Working as an employee of HSBC, specializing in face-to-face customer service, Cruz was repeatedly asked to overlook many activities he knew to be illegal.   The bottom line is that the banking giant Cruz worked for is heavily involved in an international money laundering scheme involving billions of dollars being laundered for international drug cartels.  To do this, the bank used a series of fake accounts based on stolen identities to funnel money back to clients - including the drug cartel criminals.  Corsi argued that "the complicit nature of the management of the HSBC bank running the scheme, suggests that someone in government-- like the CIA or Federal Reserve must have been aware of the wire transfers". Nothing about the CIA surprises me anymore.  (See the Ali Soufan tags at Diigo - http://www.diigo.com/user/garyedwards/Ali-Soufan?type=all).  But this is the first time i've seen the CIA enterprises linked to the Federal Reserve Bankster Cartel.  How is it that the money laundering of Trillions can happen anyway? As for war with Iran?  Corsi is behind the curve on this one.  The mullahs may look and sound like madmen bent on another Holocaust, but behind the scenes they are busy signing oil contracts with some very heavy hitting nations, including Russia, China, India, Japan and South Korea.  Yes, the world is heading for a showdown, but it's about petropaper dollars, GOLD and Bankster control of how oil transactions are settled.  The Banksters are demanding that Iran use their petropaper
Paul Merrell

New analysis of rocket used in Syria chemical attack undercuts U.S. claims | Nation | N... - 0 views

  • A series of revelations about the rocket believed to have delivered poison sarin gas to a Damascus suburb last summer are challenging American intelligence assumptions about that attack and suggest that the case U.S. officials initially made for retaliatory military action was flawed.A team of security and arms experts, meeting this week in Washington to discuss the matter, has concluded that the range of the rocket that delivered sarin in the largest attack that night was too short for the device to have been fired from the Syrian government positions where the Obama administration insists they originated.
  • In Washington, the Office of the Director of National Intelligence said its assertion of Syrian government responsibility remains unchanged. “The body of information used to make the assessment regarding the August 21 attack included intelligence pertaining to the regime’s preparations for this attack and its means of delivery, multiple streams of intelligence about the attack itself and its effect, our post-attack observations, and the differences between the capabilities of the regime and the opposition. That assessment made clear that the opposition had not used chemical weapons in Syria,” it said Wednesday in an email.But the authors of a report released Wednesday said that their study of the rocket’s design, its likely payload and its possible trajectories show that it would have been impossible for the rocket to have been fired from inside areas controlled by the government of Syrian President Bashar Assad.
  • To emphasize their point, the authors used a map produced by the White House that showed which areas were under government and rebel control on Aug. 21 and where the chemical weapons attack occurred. Drawing circles around Zamalka to show the range from which the rocket could have come, the authors conclude that all of the likely launching points were in rebel-held areas or areas that were in dispute. The area securely in government hands was miles from the possible launch zones.In an interview, Postol said that a basic analysis of the weapon – some also have described as a looking like a push pop, a fat cylinder filled with sarin atop a thin stick that holds the engine – would have shown that it wasn’t capable of flying the 6 miles from the center of the Syrian government-controlled part of Damascus to the point of impact in the suburbs, or even the 3.6 miles from the edges of government-controlled ground.
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  • The report also raised questions whether the Obama administration misused intelligence information in a way similar to the administration of President George W. Bush in the run-up to the 2003 invasion of Iraq. Then, U.S. officials insisted that Iraqi dictator Saddam Hussein had an active program to develop weapons of mass destruction. Subsequent inspections turned up no such program or weapons.“What, exactly, are we spending all this money on intelligence for?” Postol asked.
  • Lloyd, who has spent the past half-year studying the weapons and capabilities in the Syrian conflict, disputed the assumption that the rebels are less capable of making rockets than the Syrian military.“The Syrian rebels most definitely have the ability to make these weapons,” he said. “I think they might have more ability than the Syrian government.”Both said they were not making a case that the rebels were behind the attack, just that a case for military action was made without even a basic understanding of what might have happened.
  • He questioned whether U.S. intelligence officials had actually analyzed the improbability of a rocket with such a non-aerodynamic design traveling so far before Secretary of State John Kerry declared on Sept. 3 that “we are certain that none of the opposition has the weapons or capacity to effect a strike of this scale – particularly from the heart of regime territory.”“I honestly have no idea what happened,” Postol said. “My view when I started this process was that it couldn’t be anything but the Syrian government behind the attack. But now I’m not sure of anything. The administration narrative was not even close to reality. Our intelligence cannot possibly be correct.”
  • PDF: Possible Implications of Faulty US Technical Intelligence in the Damascus Nerve Agent Attack of August 21, 2013 
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    In a mainstream Texas newspaper, no less. 
Paul Merrell

'We can't let Israel determine when and where U.S. goes to war,' says Feinstein, but Hi... - 0 views

  • the new Iran sanctions bill that would kill Obama’s historic deal with Iran. And today’s bottom line is, Opposition to the warmongers is firming up. Jim Lobe reports that Senator Feinstein’s speech (above) may have killed AIPAC’s hopes of passing the new sanctions with a veto-proof Senate majority, at least until the AIPAC policy conference in the spring. Lobe notes that financial incentives to block the Iran deal also affect media: Tuesday’s floor speech by Senate Intelligence Committee Chair Dianne Feinstein could bury AIPAC’s hopes of winning passage of what I have called the Kirk-Menendez Wag the Dog Act of 2013…at least for the next month or so. The speech, which was remarkably comprehensive in rebutting virtually every argument made by AIPAC and the 59 co-sponsors in favor of the bill, comes amid a surprising spate of newspaper editorials against the bill, particularly given the dearth of actual news coverage about it. Newspapers that have taken position against the legislation in just the last few days include the Minneapolis Star Tribune, USA Today, the New York Times, and the often-neoconservative-leaning Washington Post. As cash-poor as they are, newspapers are still less susceptible to the kind of pressure exerted by AIPAC and its associated PACs that are able to provide — or deny — substantial cash for political campaigns.
  • So is the new Jeff Bezos/Washington Post showing a little vertebrae? And what about the new Chris Hughes/New Republic. Ryan Cooper has a piece up there trashing Cory Booker as a warmonger.
  • Recall that the newspaper editorials denouncing the bill as a march toward war followed a forceful White House statement that called out the warmongers: “The American people have been clear that they prefer a peaceful resolution to this issue. If certain members of Congress want the United States to take military action, they should be up front with the American public and say so,” said security aide Bridget Meehan. That put AIPAC supporter Steny Hoyer on the defensive. Politico:
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    Whether the new sanctions bill passes or not, we have a watershed moment: Members of Congress and mainstream media have finally summoned the courage to tell the Israel Lobby "no" in public.  The obvious sources of that courage are polls showing that over 80 per cent of Americans oppose war with Iran.  The Israel Lobby's control of Congress has been airtight over the last few decades. Those who voted against the Israel Lobby's wishes faced massive campaign contributions to their opponents in the next election. Only relatively few members of Congress were secure enough in their seats to vote "no."
Paul Merrell

Poll Shows Diminishing Support for Two-State Solution - Inter Press Service - 0 views

  • Twenty years of the Oslo peace process between Israelis and Palestinians have made a solution more difficult to attain, rather than easier. That was the conclusion of a poll of Israelis and Palestinians released on Friday. The poll, conducted by Zogby Research Services, showed that barely one-third of Israelis (34 percent) and Palestinians (36 percent) still believe that a two-state solution is feasible. And, while the two-state solution remains the most popular option among both peoples, that support is much stronger among Israelis (74 percent) than among Palestinians (47 percent).
  • Lead pollster and President of both Zogby Research Services and the Arab American Institute, Jim Zogby, sees these results as very troubling and as boding ill for the potential for U.S. Secretary of State John Kerry’s efforts to salvage the two-state solution.
  • Both Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas have stated that they would put any agreement to a referendum among their respective peoples. When asked if they held out hope, only 11 percent of Palestinians and 39 percent of Israelis said they did. But, when asked if they would support an agreement if their respective leaders endorsed it, 55 percent of Israelis and 49 percent of Palestinians said they would do so, while only 19 percent of Israelis and 28 percent of Palestinians said they would not.
Paul Merrell

Americans on Wrong Side of Income Gap Run Out of Means to Cope - 0 views

  • “We’ve exhausted our coping mechanisms,” said Alan Krueger, an economics professor at Princeton University in New Jersey and former chairman of President Barack Obama’s Council of Economic Advisers. “They weren’t sustainable.” The result has been a downsizing of expectations. By almost two to one — 64 percent to 33 percent — Americans say the U.S. no longer offers everyone an equal chance to get ahead, according to the latest Bloomberg National Poll. The lack of faith is especially pronounced among those making less than $50,000 a year, with close to three-quarters in the Dec. 6-9 survey saying the economy is unfair.
  • The diminished expectations have implications for the economy. Workers are clinging to their jobs as prospects fade for higher-paying employment. Households are socking away more money and charging less on credit cards. And young adults are living with their parents longer rather than venturing out on their own. In the meantime, record-high stock prices are enriching wealthier Americans, exacerbating polarization and bringing income inequality to the political forefront. Even independent government agencies like the Securities and Exchange Commission and the Federal Reserve have been dragged into the debate.
  • “The basic bargain at the heart of our economy has frayed,” Obama said in a Dec. 4 speech in Washington. “This is the defining challenge of our time: Making sure our economy works for every working American.” Democratic lawmakers also intend to press next year for a higher minimum wage to tackle the yawning gap between rich and poor, Durbin said. Republicans aren’t ceding the issue. “The American dream is certainly more in doubt than in decades,” House Speaker John Boehner of Ohio said in response to Obama’s speech. “But after more than five years in office, the president has no one to blame but himself.”
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  • Income inequality has been rising more or less steadily since the mid-1970s. The Gini coefficient, a broad-based measure of inequality, stood at a record high last year, according to Census Bureau data dating back 46 years.
  • Women who became unemployed during the recession and its aftermath have been slower to find new positions. Among women losing jobs they’d held for at least three years between January 2009 and the end of 2011, 50 percent were re-employed by the start of 2012, while the share for men was 61 percent, according to a Bureau of Labor Statistics report released in February. Households turned to stepped-up borrowing to help make ends meet, until that avenue was shut off by the collapse of house prices. About 10.8 million homeowners still owed more money on their mortgages than their properties were worth in the third quarter, according to Seattle-based Zillow Inc. The fallout has made many Americans less inclined to take risks. The quits rate — the proportion of Americans in the workforce who voluntarily left their jobs — stood at 1.7 percent in October. While that’s up from 1.5 percent a year earlier, it’s below the 2.2 percent average for 2006, the year house prices started falling, government data show.
  • “The middle has really collapsed,” said Lawrence Katz, an economics professor at Harvard University in Cambridge, Massachusetts, and a former chief economist at the Labor Department in Washington. Even those with college degrees are having trouble keeping up, he said. While they earn more than those with less schooling, they’ve seen no real wage growth in recent years. The median income of men 25 years of age and older with a bachelor’s degree was $56,656 last year, 10 percent less than in 2007 after taking account of inflation, according to Census data.
  • It’s the richest of the rich who are reaping the most benefit as an increasingly interconnected and technologically sophisticated world puts a premium on those perceived to have the highest skills — a phenomenon dubbed “winner take all” by Cornell University Professor Robert Frank. Government policies also play a role. The Treasury Department, for instance, taxes capital gains racked up by the wealthy on the sale of shares, bonds and other assets at about half the rate of ordinary income. The top 1 percent captured 95 percent of the gains in incomes in the first three years of the recovery, based on analysis of tax returns by Saez. Those less well-off, meanwhile, are running out of ways to cope. The percentage of working-age women who are in the labor force steadily climbed from a post-World War II low of 32 percent to a peak of 60.3 percent in April 2000, fueling a jump in dual-income households and helping Americans deal with slow wage growth for a while. Since the recession ended, the workforce participation rate for women has been in decline, echoing a longer-running trend among men. November data showed 57 percent of women in the labor force and 69.4 percent of men.
  • The disparity has widened since the recovery began in mid-2009. The richest 10 percent of Americans earned a larger share of income last year than at any time since 1917, according to Emmanuel Saez, an economist at the University of California at Berkeley. Those in the top one-tenth of income distribution made at least $146,000 in 2012, almost 12 times what those in the bottom tenth made, Census Bureau data show. Economists have posited a variety of explanations for the growing differences in incomes. Manufacturing companies moved once high-paying jobs abroad, to China and elsewhere. Technological advances led to the loss of clerical and office work, especially relating to routine tasks. The decline of unions — 11.3 percent of workers were represented in 2012 compared with 20.1 percent in 1983 — has advantaged bosses at the expense of their employees.
  • Millennials — adults aged 18 to 32 — are still slow to set out on their own more than four years after the recession ended, according to an Oct. 18 report by the Pew Research Center in Washington. Just over one in three head their own households, close to a 38-year low set in 2010. Obama has proposed a raft of policies to attack the widening wage gap — from simplifying the tax code and increasing exports to enhancing worker training and boosting pre-kindergarten education. Yet in a divided Washington he hasn’t made much progress pushing them through. The president’s renewed focus on income inequality has more to do with politics than policy, said Douglas Holtz-Eakin, president of the American Action Forum, a self-described center- right institute in Washington.
  • “It’s great politics to demagogue income distribution and complain about the rich getting ahead and the poor falling behind,” said Holtz-Eakin, a former Congressional Budget Office director. “The substance of what he’s actually done doesn’t match the enormity of the problem as he’s portrayed it.”
  • The wage-gap debate has reverberated to other parts of Washington, as the SEC published a rule Sept. 18 that would compel public companies to reveal pay ratios between chief executives and their employees. While businesses have decried the requirement as overreach, some investors welcome the data as a way to help assess a company’s health.
  • Across companies in the S&P 500, the average multiple of CEO compensation to that of rank-and-file workers is 204, up 20 percent since 2009, according to data compiled by Bloomberg in April. The Fed also has been caught up in the debate over growing income disparities. Lawmakers from both parties have questioned whether its bond-buying policy, called quantitative easing, has benefited the rich at the expense of those less well-off by boosting prices of stocks and other assets.
  • The S&P 500 stock index has risen 29 percent in 2013. The richest third of U.S. households account for 89 percent of all equities ownership, according to the Center for Retirement Research at Boston College.
  • Janet Yellen, nominated to take over as Fed chairman next year, defended the central bank’s actions at a Senate Banking Committee hearing on Nov. 14. “The policies we’ve undertaken have been meant to generate a robust recovery,” Yellen told the committee. The growing calls for action to reduce income inequality have translated into a national push for a higher minimum wage. Fast-food workers in 100 cities took to the streets Dec. 5 to demand a $15 hourly salary.
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    Monetary policy of, by, and for banksters continues in the U.S. One irony is that banksters press for transition to an all digital currency so that savers can be penalized, a blatant "trickle-up"economic policy, whilst also pressing for more bank bailouts, wielding the thoroughly-discredited "trickle down" economic theory. But "trickle down" theory, in the context of bank bailouts, has not successfully trickled down and the only beneficiaries have been the few Americans who can still invest in the stock market, paying the highest dividends to the wealthiest among us. Has their ever been a time when the stock market's behavior has been so divorced from the well-being of the middle and lower economic classes? I doubt there has been at least in the last 50 years. Where would we be if the bank bail-out trillions had instead been mailed as checks to the middle and lower economic classes? "Trickle up" works and that is what built the American economy to its peak in inflation-adjusted dollars -- an affluent middle class. But do not expect leadership from Washington, D.C. in correcting income inquequality; only political rhetoric and a fight over extension of unemployment benefits, now lapsed. "According to the World Bank, the GINI coefficient "measures the extent to which the distribution of income or consumption expenditure among individuals households within an economy deviates from a perfectly equal distribution." Therefore it is used as an indication of income inequality within countries. ... In the late 2000s, Chile had the highest GINI coefficient, after taxes and transfers, among OECD member countries. The United States, Turkey and Mexico came right before it. At the other end of the scale, Slovenia, Denmark and Norway led the ranking with the lowest levels of income inequality." http://www.gfmag.com/tools/global-database/economic-data/11944-wealth-distribution-income-inequality.html#ixzz2pGpv4xGZ Higher minimum wages? How about instead abolishing the Feder
Gary Edwards

GOP immigration plan devised by Communist Party - 0 views

  • Republican support
  • But why would Republicans get behind such a plan? Some astute political observers advise that when politicians appear to be promoting agendas against their own interest, follow the money.
  • t’s no surprise that the Republicans supporting this thing are the ones with ties to the Chamber of Commerce, not ordinary voters.”
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  • But even if big business benefits, the cheap labor advantages are only temporary. Once illegal aliens are fully legalized, businesses will be required to provide just as much in pay and benefits as they pay American workers.
  • In the meantime, however, it is widely assumed those workers will take jobs from American citizens, depress wages and increase unemployment. Moreover, in many key swing states, projected amnesties will swamp the rolls of the unemployed (see table)
  • So, illegal aliens would be granted legal status immediately, but five years down the road, if the fence still isn’t built and e-verify still isn’t being used, then their legal status would be revoked. Given that the Department of Homeland Security is already allegedly ignoring border security –with immigration and customs agents suing their own agency for failing to enforce the law – many voters place little confidence in political promises of future enforcement.
  • In the meantime, Senate and House opponents have been painstakingly highlighting what they consider to be glaring flaws in these proposals: Every single border security provision in the Senate bill, including the hire of 20,000 Border Patrol agents, denying amnesty to criminals, building fences and installing surveillance devices, can be waived by the Homeland Security secretary. Both the House and Senate proposals emphasize the path to citizenship – the centerpiece of communist efforts – while making border security both vague and secondary. Both bills provide a $5,000 incentive for companies to hire the newly legalized illegal aliens instead of Americans, since the aliens would not be subject to the Obamacare coverage mandate.
  • Although politicians and the media have settled on the claim that there are 11 million illegal aliens, the actual number may well be closer to 20 million to 30 million. There were 10 million in 1996, a mere 10 years after Reagan’s amnesty, and it is doubtful only one million more have been added in the ensuing 17 years. Since 1990, Border agents have apprehended on average more than 1 million illegal aliens per year, almost all from Mexico.
  • When the Reagan amnesty became law, the intention was to naturalize only 1.2 million people, but the actual figure turned out to be 2.7 million. Statistics on illegal immigration have longed tended to be underestimated, sometimes vastly so.
  • Thus, current proposals provide a path to citizenship for as many as 20 to 30 million illegal aliens here now, plus relatives who will be brought in through chain migration and at least 75 percent of those who will come in the future – virtually endless amnesty – while efforts to secure the border are almost certain to be insufficient.
  • With polls showing more than two-thirds of Americans don’t believe “immigration laws would be enforced in the future if illegal aliens were given amnesty,” it is clear that passage of the current Republican-backed bill may indeed fulfill the agenda of its communist originators – the creation of a permanent Democrat voting majority, guaranteeing permanent control of the United States government by leftist progressives.
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    Wow.  Documentation up the ying yang .......... "The U.S. Senate's "Gang of Eight" immigration-reform plan, as well as a strikingly similar plan now being backed by Rep. Paul Ryan, R-Wis., and a bi-partisan House "Gang," both offer the "roadmap to citizenship" originally conceived and carefully developed by members of the Communist Party USA working within the Democratic Party and the radical left activist network for the purpose of using amnestied illegals to build a "permanent progressive majority." That is the inescapable conclusion readers will draw after reading the forthcoming book by acclaimed researcher and blogger Trevor Loudon, titled "The Enemies Within: Communists, Socialists and Progressives in the U.S. Congress." Although not yet published, Loudon agreed to allow WND readers to preview one chapter, titled "Latino Immigrants: Tools to Ensure a 'Governing Coalition' for the Left." Ads by Google Marriage Visa Lawyer $195 Get Your Fiance/Spouse to the USA. Free Consultation. (888) 902-9285 EasyFianceVisa.com/SpousalVisa Canadian Rockies By Train Experience the Rockies By Train. Luxury Mountain Travel By Rail TravelAlberta.us/Train In the book, Loudon exhaustively documents the Left's longtime agenda regarding illegal aliens and how its activists have gone about implementing it. He provides irrefutable proof that the entire immigration-reform movement was the brainchild of American communists and that their goal has long been to establish unchallengeable political supremacy. According to Loudon, the Communist Party USA has influenced U.S. policy toward illegals since at least the 1960s. He traces the history, showing how communists and communist-founded organizations slowly built the movement from the ground up. While other groups certainly joined the effort, the communists were always at the center. For example, he tells the story of CPUSA member Bert Corona, the "Communist Father of the 'Immigrants Rights' move
Paul Merrell

Exclusive: U.S. directs agents to cover up program used to investigate Americans - chic... - 0 views

  • WASHINGTON (Reuters) - A secretive U.S. Drug Enforcement Administration unit is funneling information from intelligence intercepts, wiretaps, informants and a massive database of telephone records to authorities across the nation to help them launch criminal investigations of Americans. Although these cases rarely involve national security issues, documents reviewed by Reuters show that law enforcement agents have been directed to conceal how such investigations truly begin - not only from defense lawyers but also sometimes from prosecutors and judges. The undated documents show that federal agents are trained to "recreate" the investigative trail to effectively cover up where the information originated, a practice that some experts say violates a defendant's Constitutional right to a fair trial. If defendants don't know how an investigation began, they cannot know to ask to review potential sources of exculpatory evidence - information that could reveal entrapment, mistakes or biased witnesses.
  • The unit of the DEA that distributes the information is called the Special Operations Division, or SOD. Two dozen partner agencies comprise the unit, including the FBI, CIA, NSA, Internal Revenue Service and the Department of Homeland Security. It was created in 1994 to combat Latin American drug cartels and has grown from several dozen employees to several hundred. Today, much of the SOD's work is classified, and officials asked that its precise location in Virginia not be revealed. The documents reviewed by Reuters are marked "Law Enforcement Sensitive," a government categorization that is meant to keep them confidential. "Remember that the utilization of SOD cannot be revealed or discussed in any investigative function," a document presented to agents reads. The document specifically directs agents to omit the SOD's involvement from investigative reports, affidavits, discussions with prosecutors and courtroom testimony. Agents are instructed to then use "normal investigative techniques to recreate the information provided by SOD."
  • A spokesman with the Department of Justice, which oversees the DEA, declined to comment. But two senior DEA officials defended the program, and said trying to "recreate" an investigative trail is not only legal but a technique that is used almost daily.
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  • A former federal agent in the northeastern United States who received such tips from SOD described the process. "You'd be told only, ‘Be at a certain truck stop at a certain time and look for a certain vehicle.' And so we'd alert the state police to find an excuse to stop that vehicle, and then have a drug dog search it," the agent said. "PARALLEL CONSTRUCTION" After an arrest was made, agents then pretended that their investigation began with the traffic stop, not with the SOD tip, the former agent said. The training document reviewed by Reuters refers to this process as "parallel construction." The two senior DEA officials, who spoke on behalf of the agency but only on condition of anonymity, said the process is kept secret to protect sources and investigative methods. "Parallel construction is a law enforcement technique we use every day," one official said. "It's decades old, a bedrock concept." A dozen current or former federal agents interviewed by Reuters confirmed they had used parallel construction during their careers. Most defended the practice; some said they understood why those outside law enforcement might be concerned.
  • Today, the SOD offers at least three services to federal, state and local law enforcement agents: coordinating international investigations such as the Bout case; distributing tips from overseas NSA intercepts, informants, foreign law enforcement partners and domestic wiretaps; and circulating tips from a massive database known as DICE. The DICE database contains about 1 billion records, the senior DEA officials said. The majority of the records consist of phone log and Internet data gathered legally by the DEA through subpoenas, arrests and search warrants nationwide. Records are kept for about a year and then purged, the DEA officials said. About 10,000 federal, state and local law enforcement agents have access to the DICE database, records show. They can query it to try to link otherwise disparate clues. Recently, one of the DEA officials said, DICE linked a man who tried to smuggle $100,000 over the U.S. southwest border to a major drug case on the East Coast.
Paul Merrell

NSA 'secret backdoor' paved way to U.S. phone, e-mail snooping | Politics and Law - CNE... - 0 views

  • The National Security Agency created a "secret backdoor" so its massive databases could be searched for the contents of U.S. citizens' confidential phone calls and e-mail messages without a warrant, according to the latest classified documents leaked by Edward Snowden. A report in the Guardian on Friday quoted Sen. Ron Wyden, an Oregon Democrat who serves on the Senate Intelligence Committee, as saying the secret rule offers a loophole allowing "warrantless searches for the phone calls or emails of law-abiding Americans." That appears to confirm what Rep. Jerrold Nadler, a New York Democrat, said in June after receiving a classified briefing from administration officials a few days earlier on the extent of the NSA's domestic surveillance operations. If the NSA wants "to listen to the phone," an analyst's decision is sufficient, without any other legal authorization required, Nadler said he had been told during the briefing. "I was rather startled," said Nadler, an attorney who serves on the House Judiciary Committee.
  • FBI Director Robert Mueller responded by assuring Nadler, according to a transcript of the hearing, that to "listen to the phone," the government would need "a particularized order" from the Foreign Intelligence Surveillance Court -- a claim that is contradicted by today's Guardian report and other documents. Mueller has been succeeded by James Comey, who was confirmed last month by the Senate. In response to a CNET article at the time, Director of National Intelligence James Clapper released a statement saying: "The statement that a single analyst can eavesdrop on domestic communications without proper legal authorization is incorrect and was not briefed to Congress." Clapper never elaborated, however, on what "proper" authorization would be. Today's top-secret document leaked by Snowden reveals that "procedures approved on 3 October 2011 now allow for use of certain United States person names and identifiers as query terms when reviewing collected FAA 702 data."
  • FAA 702 is a reference to section 702 of a 2008 law that amended the Foreign Intelligence Surveillance Act. Those amendments created a warrantless surveillance process that could be employed by NSA analysts, but Congress never intended it to be used domestically against American citizens: A congressional report accompanying the law claimed it allows electronic surveillance only of "persons located outside the United States in order to acquire foreign intelligence information." In reality, though, the Obama Justice Department has devised secret interpretations of FAA 702 carving out loopholes in what were intended to be strict privacy safeguards. One loophole revealed in June shows that NSA, CIA, and FBI analysts are granted broad access to data vacuumed up by the world's most powerful intelligence agency -- but are supposed to follow certain "targeting" and "minimization" procedures to limit the number of Americans who become individual targets of warrantless surveillance.
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  • Today's disclosures appear to be at odds with what President Obama has said over the last two months in defense of NSA surveillance. "What I can say unequivocally is that if you are a U.S. person, the NSA cannot listen to your telephone calls and the NSA cannot target your e-mails," Obama has said. Earlier reports have indicated that the NSA has the ability to record nearly all domestic and international phone calls -- in case an analyst needed to access the recordings in the future. A Wired magazine article last year disclosed that the NSA has established "listening posts" that allow the agency to collect and sift through billions of phone calls through a massive new data center in Utah, "whether they originate within the country or overseas." That includes not just metadata, but also the contents of the communications.
  • AT&T and other telecommunications companies that allow the NSA to tap into their fiber links receive absolute immunity from civil liability or criminal prosecution, thanks to Section 702 of the FISA Amendments Act, which Congress renewed in 2012. It says that any civil lawsuit "against any person for providing assistance to an element of the intelligence community...shall be promptly dismissed." Section 702 of the law says surveillance may be authorized by the attorney general and director of national intelligence without prior approval by the secret Foreign Intelligence Surveillance Court -- in practice, this means analysts at the NSA and other agencies with intelligence functions -- as long as minimization requirements and general procedures blessed by the court are followed. It's unclear whether the court has approved the "secret backdoor" allowing Americans' e-mail and phone messages to be targeted for domestic surveillance.
Paul Merrell

Michael Hayden talks to CNN about XKEYSCORE program. - 0 views

  • Does the NSA really operate a vast database that allows its analysts to sift through millions of records showing nearly everything a user does on the Internet, as was recently reported? Yes, and people should stop worrying and learn to love it, according former NSA chief Gen. Michael Hayden. Last week, the Guardian published a series of leaked documents revealing new details about an NSA surveillance program called XKEYSCORE. The newspaper said that the program enabled the agency to “search with no prior authorization through vast databases containing emails, online chats and the browsing histories of millions of individuals,” and secret slides dated 2008 showed how people could be deemed a target for searching the Web for “suspicious stuff” or by using encryption. Following the disclosures, Hayden appeared on CNN to discuss the agency’s surveillance programs. The general, who directed the NSA from 1999 through 2005, was remarkably candid in his responses to Erin Burnett’s questions about the Guardian’s XKEYSCORE report. Was there any truth to claims that the NSA is sifting through millions of browsing histories and able to collect virtually everything users do on the Internet? “Yeah,” Hayden said. “And it's really good news.”
  • Not only that, Hayden went further. He revealed that the XKEYSCORE was “a tool that's been developed over the years, and lord knows we were trying to develop similar tools when I was at the National Security Agency.” The XKEYSCORE system, Hayden said, allows analysts to enter a “straight-forward question” into a computer and sift through the “oceans of data” that have been collected as part of foreign intelligence gathering efforts. How this process works was illustrated in the Guardian’s report. Analysts can enter search terms to sift through data and select from a drop-down menu a target’s “foreignness factor,” which is intended to minimize the warrantless surveillance of Americans. However, operating a vast electronic dragnet such as this is far from an exact science, and the NSA’s system of sifting data from the backbone of international Internet networks likely sometimes involves gobbling up information on Americans’ communications and online activity—whether it is done wittingly or not. Indeed, the NSA reportedly only needs to have 51 percent certainty that it is targeting a foreigner. And as leaked secret rules for the surveillance have shown, even if the NSA does “inadvertently” gather Americans’ communications, it can hold on to them if they are deemed valuable for vague “foreign intelligence” purposes or if the communications show evidence of a crime that has occurred or may occur in the future.
  • In the CNN interview, Hayden described XKEYSCORE as “really quite an achievement” and said that it enabled NSA spies to find the needle in the haystack. But his ardent defense of the system is unlikely to reassure civil liberties advocates. Having Hayden’s support is a rather dubious stamp of approval, particularly because he was responsible for leading the NSA’s illegal warrantless wiretapping program, which was initiated post-9/11 and exposed by the New York Times in 2005. Hayden later went on to lead the CIA from 2006 through 2009, where he oversaw the use of the waterboarding torture technique and the operation of a controversial black-site prison program that was eventually dismantled by President Obama. The former NSA chief retired in 2009, but he has since become a regular media commentator, using a recent column at CNN to blast Snowden for leaking the secret NSA documents and implying that he’d like to see the Guardian journalist Glenn Greenwald prosecuted as a “co-conspirator” for his role reporting the surveillance scoops.
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    Let's see, the entire U.S. military has been forbidden from reading The Guardian because the documents Edward Snowden leaked are still classified. But a former NSA chief can confirm their accuracy on CNN?  Surely, even as I write a grand jury is busy indicting him on Espionage Act charges? No? Smells like hypocrisy to me. 
Paul Merrell

Private firms selling mass surveillance systems around world, documents show | World ne... - 0 views

  • Private firms are selling spying tools and mass surveillance technologies to developing countries with promises that "off the shelf" equipment will allow them to snoop on millions of emails, text messages and phone calls, according to a cache of documents published on Monday.The papers show how firms, including dozens from Britain, tout the capabilities at private trade fairs aimed at offering nations in Africa, Asia and the Middle East the kind of powerful capabilities that are usually associated with government agencies such as GCHQ and its US counterpart, the National Security Agency.The market has raised concerns among human rights groups and ministers, who are poised to announce new rules about the sale of such equipment from Britain.
  • The documents are included in an online database compiled by the research watchdog Privacy International, which has spent four years gathering 1,203 brochures and sales pitches used at conventions in Dubai, Prague, Brasilia, Washington, Kuala Lumpur, Paris and London. Analysts posed as potential buyers to gain access to the private fairs.The database, called the Surveillance Industry Index, shows how firms from the UK, Israel, Germany, France and the US offer governments a range of systems that allow them to secretly hack into internet cables carrying email and phone traffic.The index has details from 338 companies, including 77 from the UK, offering a total of 97 different technologies.
  • The documents include a brochure from a company called Advanced Middle East Systems (AMES), based in Dubai. It has been offering a device called Cerebro – a DIY system similar to the Tempora programme run by GCHQ – that taps information from fibre-optic cables carrying internet traffic.AMES describes Cerebro as a "core technology designed to monitor and analyse in real time communications … including SMS (texting), GSM (mobile calls), billing data, emails, conversations, webmail, chat sessions and social networks."The company brochure makes clear this is done by attaching probes to internet cables. "No co-operation with the providers is required," it adds."Cerebro is designed to store several billions of records – metadata and/or communication contents. At any time the investigators can follow the live activity of their target with advanced targeting criteria (email addresses, phone numbers, key words)," says the brochure.
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  • Another firm selling similar equipment is VASTech, based in South Africa, which has a system called Zebra. Potential buyers are told it has been designed to help "government security agencies face huge challenges in their combat against crime and terrorism".VASTech says Zebra offers "access to high volumes of information generated via telecommunication services for the purposes of analysis and investigation".It has been designed to "intercept all content and metadata of voice, SMS, email and fax communications on the connected network, creating a rich repository of information".
  • It is now possible, from a single laptop computer, to locate where a mobile phone is calling from anywhere in the world, with an accuracy of between 200 metres and a mile. This is not done by attaching probes, and it is not limited to the area where the laptop is working from. The "cross border" system means it is now theoretically possible to locate a mobile phone call from a town abroad from a laptop in London.
Paul Merrell

NSA infected 50,000 computer networks with malicious software - nrc.nl - 0 views

  • The American intelligence service - NSA - infected more than 50,000 computer networks worldwide with malicious software designed to steal sensitive information. Documents provided by former NSA-employee Edward Snowden and seen by this newspaper, prove this. A management presentation dating from 2012 explains how the NSA collects information worldwide. In addition, the presentation shows that the intelligence service uses ‘Computer Network Exploitation’ (CNE) in more than 50,000 locations. CNE is the secret infiltration of computer systems achieved by installing malware, malicious software. One example of this type of hacking was discovered in September 2013 at the Belgium telecom provider Belgacom. For a number of years the British intelligence service - GCHQ – has been installing this malicious software in the Belgacom network in order to tap their customers’ telephone and data traffic. The Belgacom network was infiltrated by GCHQ through a process of luring employees to a false Linkedin page.
  • The NSA computer attacks are performed by a special department called TAO (Tailored Access Operations). Public sources show that this department employs more than a thousand hackers. As recently as August 2013, the Washington Post published articles about these NSA-TAO cyber operations. In these articles The Washington Post reported that the NSA installed an estimated 20,000 ‘implants’ as early as 2008. These articles were based on a secret budget report of the American intelligence services. By mid-2012 this number had more than doubled to 50,000, as is shown in the presentation NRC Handelsblad laid eyes on.
  • Cyber operations are increasingly important for the NSA. Computer hacks are relatively inexpensive and provide the NSA with opportunities to obtain information that they otherwise would not have access to. The NSA-presentation shows their CNE-operations in countries such as Venezuela and Brazil. The malware installed in these countries can remain active for years without being detected.
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  • The malware can be controlled remotely and be turned on and off at will. The ‘implants’ act as digital ‘sleeper cells’ that can be activated with a single push of a button. According to the Washington Post, the NSA has been carrying out this type of cyber operation since 1998.
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    Nice interactive graphic too. 
Paul Merrell

Documents: FBI Spyware Has Been Snaring Extortionists, Hackers for Years | Threat Level... - 0 views

  • A sophisticated FBI-produced spyware program has played a crucial behind-the-scenes role in federal investigations into extortion plots, terrorist threats and hacker attacks in cases stretching back at least seven years, newly declassified documents show. As first reported by Wired.com, the software, called a "computer and internet protocol address verifier," or CIPAV, is designed to infiltrate a target’s computer and gather a wide range of information, which it secretly sends to an FBI server in eastern Virginia. The FBI’s use of the spyware surfaced in 2007 when the bureau used it to track e-mailed bomb threats against a Washington state high school to a 15-year-old student. But the documents released Thursday under the Freedom of Information Act show the FBI has quietly obtained court authorization to deploy the CIPAV in a wide variety of cases, ranging from major hacker investigations, to someone posing as an FBI agent online. Shortly after its launch, the program became so popular with federal law enforcement that Justice Department lawyers in Washington warned that overuse of the novel technique could result in its electronic evidence being thrown out of court in some cases. "While the technique is of indisputable value in certain kinds of cases, we are seeing indications that it is being used needlessly by some agencies, unnecessarily raising difficult legal questions (and a risk of suppression) without any countervailing benefit," reads a formerly-classified March 7, 2002 memo from the Justice Department’s Computer Crime and Intellectual Property Section.
  • The documents, which are heavily redacted, do not detail the CIPAV’s capabilities, but an FBI affidavit in the 2007 case indicate it gathers and reports a computer’s IP address; MAC address; open ports; a list of running programs; the operating system type, version and serial number; preferred internet browser and version; the computer’s registered owner and registered company name; the current logged-in user name and the last-visited URL. After sending the information to the FBI, the CIPAV settles into a silent "pen register" mode, in which it lurks on the target computer and monitors its internet use, logging the IP address of every server to which the machine connects. The documents shed some light on how the FBI sneaks the CIPAV onto a target’s machine, hinting that the bureau may be using one or more web browser vulnerabilities. In several of the cases outlined, the FBI hosted the CIPAV on a website, and tricked the target into clicking on a link. That’s what happened in the Washington case, according to a formerly-secret planning document for the 2007 operation. "The CIPAV will be deployed via a Uniform Resource Locator (URL) address posted to the subject’s private chat room on MySpace.com."
  • The software’s primary utility appears to be in tracking down suspects that use proxy servers or anonymizing websites to cover their tracks.
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  • The documents appear to settle one of the questions the FBI declined to answer in 2007: whether the bureau obtains search warrants before using the CIPAV, or if it sometimes relies on weaker "pen register" orders that don’t require a showing of probable cause that a crime has been committed. In all the criminal cases described in the documents, the FBI sought search warrants. The records also indicate that the FBI obtained court orders from the Foreign Intelligence Surveillance Court, which covers foreign espionage and terrorism investigations, but the details are redacted. The FBI released 152 heavily-redacted pages in response to Threat Level’s FOIA request, and withheld another 623.
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    The article summarizes many cases in which the CIPAV exploit was used by the FBI. But the article's closing observation that the released documents "whether the bureau obtains search warrants before using the CIPAV" stretches the evidence a bit too far, methinks. If they exist, the FBI very likely would not have produced records of incidents in which it used CIPAV without court authorization. 
Paul Merrell

Ed Markey letters from cellphone companies: How often AT&T, T-mobile give the governmen... - 0 views

  • Cellphones are the spies in our pockets, gathering information about whom we befriend, what we say, where we go, and what we read. That’s why Sen. Edward Markey, D-Mass., recently asked the nation’s major cellphone companies to disclose how frequently they receive requests from law enforcement for customer call records—including the content of communications, numbers dialed, websites visited, and location data. Sometimes police have a warrant, sometimes they don’t. Seven companies provided information in response to the inqury. The letters Markey received, which were covered today in the Boston Globe, Washington Post, and New York Times, show that the quantity of requests for these records is staggering. T-Mobile and AT&T together received nearly 600,000 requests for customer information in 2012. AT&T has to employ more than 100 full-time workers to process them. And police demand for our call records is growing rapidly, with requests to Verizon doubling in the last five years.
  • he companies keep records of where you have traveled in the past and can track you in real time—so law enforcement can do it, too. In some ways having a police officer track you in real time electronically is even worse, because you never know when it’s happening. Historical records can be even more sensitive than real-time tracking, stretching back for months or even years, and reveal your daily routine and every deviation from it.
  • Unfortunately, according to the companies’ letters, some of them appear to be handing over the content of our digital communications without a warrant. AT&T discloses stored texts or voicemails that are older than 180 days old with a subpoena—no court supervision or probable cause required. In one bright spot, T-Mobile requires a warrant for texts and voicemails. The letters also show that in its search for evidence about a handful of guilty people, law enforcement often obtains the data of hundreds or thousands of innocent people. For example, through a technique known as “tower dumps,” law enforcement agents can see all of the cellphones using a particular tower in a given time range. There were approximately 9,000 tower dumps reported in 2012 (with not all companies reporting). What happens to that data? Could it be used for future investigations? No one really knows, because there are no clear policies in place, and the people whose data is turned over are never notified.
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    Note that this is about requests from *law enforcement," not from the federal spy agencies. 
Paul Merrell

Fresh spy leak shows Australia offered to share data on its citizens - 0 views

  • Information about ordinary Australian citizens has been offered to Australia's global spying partners, according to the latest reports of leaked intelligence from US whistleblower Edward Snowden. In revelations that will add pressure to the Abbott government, which is still reeling from the Indonesian spying leak, The Guardian is reporting that Australia's surveillance agency has indicated it would share “bulk” data with its “5-eyes” partners – an intelligence-sharing network comprising the US, Britain, Canada, New Zealand and Australia.
  • “The document shows the partners discussing whether or not to share 'medical, legal or religious information',” the report states. Advertisement <iframe id="dcAd-1-4" src="http://ad-apac.doubleclick.net/N6411/adi/onl.smh.news/federalpolitics/politicalnews;cat=federalpolitics;cat1=politicalnews;ctype=article;pos=3;sz=300x250;tile=4;ord=3.4276163E7?" width='300' height='250' scrolling="no" marginheight="0" marginwidth="0" allowtransparency="true" frameborder="0"> </iframe> The latest spying revelations are based on a secret 2008 document obtained by Mr Snowden, a former contractor who had access to high-level US government intelligence. Mr Snowden's document reveals notes of what was discussed at a “5-eyes” conference hosted by Britain's GCHQ in Cheltenham on April 22-23, 2008. According to the report, Australia's intelligence agency, then known as the Defence Signals Directorate, told its global intelligence partners it could share “bulk, unselected, unminimised metadata as long as there is no intent to target an Australian national”.
  • The partners also agreed that medical, legal or religious would not be automatically excluded from the sharing arrangement, but would instead be considered by the owning agency ‘‘on a case-by-case basis’’.  The Australian intelligence agency was reportedly willing to reveal more about its country's citizens, with fewer privacy restraints, than other countries. According to The Guardian’s report, the documents reveal that Canada imposed more rigorous privacy restrictions than Australia, agreeing to share information on the condition that information about its citizens first be redacted. Prime Minister Tony Abbott said he was confident Australian intelligence agencies were acting in accordance with the law and there were adequate safeguards in place.
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    Sharing "medical, legal, or religious information." 
Paul Merrell

Fukushima - A Global Threat That Requires a Global Response - 0 views

  • The story of Fukushima should be on the front pages of every newspaper. Instead, it is rarely mentioned. The problems at Fukushima are unprecedented in human experience and involve a high risk of radiation events larger than any that the global community has ever experienced. It is going to take the best engineering minds in the world to solve these problems and to diminish their global impact. When we researched the realities of Fukushima in preparation for this article, words like apocalyptic, cataclysmic and Earth-threatening came to mind. But, when we say such things, people react as if we were the little red hen screaming "the sky is falling" and the reports are ignored. So, we’re going to present what is known in this article and you can decide whether we are facing a potentially cataclysmic event.
  • There are three major problems at Fukushima: (1) Three reactor cores are missing; (2) Radiated water has been leaking from the plant in mass quantities for 2.5 years; and (3) Eleven thousand spent nuclear fuel rods, perhaps the most dangerous things ever created by humans, are stored at the plant and need to be removed, 1,533 of those are in a very precarious and dangerous position. Each of these three could result in dramatic radiation events, unlike any radiation exposure humans have ever experienced.  We’ll discuss them in order, saving the most dangerous for last.
  • Missing reactor cores:  Since the accident at Fukushima on March 11, 2011, three reactor cores have gone missing.  There was an unprecedented three reactor ‘melt-down.’ These melted cores, called corium lavas, are thought to have passed through the basements of reactor buildings 1, 2 and 3, and to be somewhere in the ground underneath.  Harvey Wasserman, who has been working on nuclear energy issues for over 40 years, tells us that during those four decades no one ever talked about the possibility of a multiple meltdown, but that is what occurred at Fukushima.  It is an unprecedented situation to not know where these cores are. TEPCO is pouring water where they think the cores are, but they are not sure. There are occasional steam eruptions coming from the grounds of the reactors, so the cores are thought to still be hot. The concern is that the corium lavas will enter or may have already entered the aquifer below the plant. That would contaminate a much larger area with radioactive elements. Some suggest that it would require the area surrounding Tokyo, 40 million people, to be evacuated. Another concern is that if the corium lavas enter the aquifer, they could create a "super-heated pressurized steam reaction beneath a layer of caprock causing a major 'hydrovolcanic' explosion." A further concern is that a large reserve of groundwater which is coming in contact with the corium lavas is migrating towards the ocean at the rate of four meters per month. This could release greater amounts of radiation than were released in the early days of the disaster.
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  • Radioactive water leaking into the Pacific Ocean:  TEPCO did not admit that leaks of radioactive water were occurring until July of this year. Shunichi Tanaka the head of Japan’s Nuclear Regulation Authority finally told reporters this July that radioactive water has been leaking into the Pacific Ocean since the disaster hit over two years ago. This is the largest single contribution of radionuclides to the marine environment ever observed according to a report by the French Institute for Radiological Protection and Nuclear Safety.  The Japanese government finally admitted that the situation was urgent this September – an emergency they did not acknowledge until 2.5 years after the water problem began. How much radioactive water is leaking into the ocean? An estimated 300 tons (71,895 gallons/272,152 liters) of contaminated water is flowing into the ocean every day.  The first radioactive ocean plume released by the Fukushima nuclear power plant disaster will take three years to reach the shores of the United States.  This means, according to a new study from the University of New South Wales, the United States will experience the first radioactive water coming to its shores sometime in early 2014.
  • One month after Fukushima, the FDA announced it was going to stop testing fish in the Pacific Ocean for radiation.  But, independent research is showing that every bluefin tuna tested in the waters off California has been contaminated with radiation that originated in Fukushima. Daniel Madigan, the marine ecologist who led the Stanford University study from May of 2012 was quoted in the Wall Street Journal saying, "The tuna packaged it up (the radiation) and brought it across the world’s largest ocean. We were definitely surprised to see it at all and even more surprised to see it in every one we measured." Marine biologist Nicholas Fisher of Stony Brook University in New York State, another member of the study group, said: "We found that absolutely every one of them had comparable concentrations of cesium 134 and cesium 137." In addition, Science reports that fish near Fukushima are being found to have high levels of the radioactive isotope, cesium-134. The levels found in these fish are not decreasing,  which indicates that radiation-polluted water continues to leak into the ocean. At least 42 fish species from the area around the plant are considered unsafe.  South Korea has banned Japanese fish as a result of the ongoing leaks.
  • Wasserman builds on the analogy, telling us it is "worse than pulling cigarettes out of a crumbled cigarette pack." It is likely they used salt water as a coolant out of desperation, which would cause corrosion because the rods were never meant to be in salt water.  The condition of the rods is unknown. There is debris in the coolant, so there has been some crumbling from somewhere. Gundersen  adds, "The roof has fallen in, which further distorted the racks," noting that if a fuel rod snaps, it will release radioactive gas which will require at a minimum evacuation of the plant. They will release those gases into the atmosphere and try again. The Japan Times writes: "The consequences could be far more severe than any nuclear accident the world has ever seen. If a fuel rod is dropped, breaks or becomes entangled while being removed, possible worst case scenarios include a big explosion, a meltdown in the pool, or a large fire. Any of these situations could lead to massive releases of deadly radionuclides into the atmosphere, putting much of Japan — including Tokyo and Yokohama — and even neighboring countries at serious risk."  
  • The most recent news on the water problem at Fukushima adds to the concerns. On October 11, 2013, TEPCO disclosed that the radioactivity level spiked 6,500 times at a Fukushima well.  "TEPCO said the findings show that radioactive substances like strontium have reached the groundwater. High levels of tritium, which transfers much easier in water than strontium, had already been detected." Spent Fuel Rods:  As bad as the problems of radioactive water and missing cores are, the biggest problem at Fukushima comes from the spent fuel rods.  The plant has been in operation for 40 years. As a result, they are storing 11 thousand spent fuel rods on the grounds of the Fukushima plant. These fuel rods are composed of highly radioactive materials such as plutonium and uranium. They are about the width of a thumb and about 15 feet long. The biggest and most immediate challenge is the 1,533 spent fuel rods packed tightly in a pool four floors above Reactor 4.  Before the storm hit, those rods had been removed for routine maintenance of the reactor.  But, now they are stored 100 feet in the air in damaged racks.  They weigh a total of 400 tons and contain radiation equivalent to 14,000 times the amount released by the Hiroshima atomic bomb.
  • The building in which these rods are stored has been damaged. TEPCO reinforced it with a steel frame, but the building itself is buckling and sagging, vulnerable to collapse if another earthquake or storm hits the area. Additionally, the ground under and around the building is becoming saturated with water, which further undermines the integrity of the structure and could cause it to tilt. How dangerous are these fuel rods?  Harvey Wasserman explains that the fuel rods are clad in zirconium which can ignite if they lose coolant. They could also ignite or explode if rods break or hit each other. Wasserman reports that some say this could result in a fission explosion like an atomic bomb, others say that is not what would happen, but agree it would be "a reaction like we have never seen before, a nuclear fire releasing incredible amounts of radiation," says Wasserman. These are not the only spent fuel rods at the plant, they are just the most precarious.  There are 11,000 fuel rods scattered around the plant, 6,000 in a cooling pool less than 50 meters from the sagging Reactor 4.  If a fire erupts in the spent fuel pool at Reactor 4, it could ignite the rods in the cooling pool and lead to an even greater release of radiation. It could set off a chain reaction that could not be stopped.
  • What would happen? Wasserman reports that the plant would have to be evacuated.  The workers who are essential to preventing damage at the plant would leave, and we will have lost a critical safeguard.  In addition, the computers will not work because of the intense radiation. As a result we would be blind - the world would have to sit and wait to see what happened. You might have to not only evacuate Fukushima but all of the population in and around Tokyo, reports Wasserman.  There is no question that the 1,533 spent fuel rods need to be removed.  But Arnie Gundersen, a veteran nuclear engineer and director of Fairewinds Energy Education, who used to build fuel assemblies, told Reuters "They are going to have difficulty in removing a significant number of the rods." He described the problem in a radio interview: "If you think of a nuclear fuel rack as a pack of cigarettes, if you pull a cigarette straight up it will come out — but these racks have been distorted. Now when they go to pull the cigarette straight out, it’s going to likely break and release radioactive cesium and other gases, xenon and krypton, into the air. I suspect come November, December, January we’re going to hear that the building’s been evacuated, they’ve broke a fuel rod, the fuel rod is off-gassing."
  • As bad as the ongoing leakage of radioactive water is into the Pacific, that is not the largest part of the water problem.  The Asia-Pacific Journal reported last month that TEPCO has 330,000 tons of water stored in 1,000 above-ground tanks and an undetermined amount in underground storage tanks.  Every day, 400 tons of water comes to the site from the mountains, 300 tons of that is the source for the contaminated water leaking into the Pacific daily. It is not clear where the rest of this water goes.   Each day TEPCO injects 400 tons of water into the destroyed facilities to keep them cool; about half is recycled, and the rest goes into the above-ground tanks. They are constantly building new storage tanks for this radioactive water. The tanks being used for storage were put together rapidly and are already leaking. They expect to have 800,000 tons of radioactive water stored on the site by 2016.  Harvey Wasserman warns that these unstable tanks are at risk of rupture if there is another earthquake or storm that hits Fukushima. The Asia-Pacific Journal concludes: "So at present there is no real solution to the water problem."
  • This is not the usual moving of fuel rods.  TEPCO has been saying this is routine, but in fact it is unique – a feat of engineering never done before.  As Gundersen says: "Tokyo Electric is portraying this as easy. In a normal nuclear reactor, all of this is done with computers. Everything gets pulled perfectly vertically. Well nothing is vertical anymore, the fuel racks are distorted, it’s all going to have to be done manually. The net effect is it’s a really difficult job. It wouldn’t surprise me if they snapped some of the fuel and they can’t remove it." Gregory Jaczko, Former Chairman of the U.S. Nuclear Regulatory Commission concurs with Gundersen describing the removal of the spent fuel rods as "a very significant activity, and . . . very, very unprecedented." Wasserman sums the challenge up: "We are doing something never done before – bent, crumbling, brittle fuel rods being removed from a pool that is compromised, in a building that is sinking, sagging and buckling, and it all must done under manual control, not with computers."  And the potential damage from failure would affect hundreds of millions of people.
  • The first thing that is needed is to end the media blackout.  The global public needs to be informed about the issues the world faces from Fukushima.  The impacts of Fukushima could affect almost everyone on the planet, so we all have a stake in the outcome.  If the public is informed about this problem, the political will to resolve it will rapidly develop. The nuclear industry, which wants to continue to expand, fears Fukushima being widely discussed because it undermines their already weak economic potential.  But, the profits of the nuclear industry are of minor concern compared to the risks of the triple Fukushima challenges. 
  • The second thing that must be faced is the incompetence of TEPCO.  They are not capable of handling this triple complex crisis. TEPCO "is already Japan’s most distrusted firm" and has been exposed as "dangerously incompetent."  A poll found that 91 percent of the Japanese public wants the government to intervene at Fukushima. Tepco’s management of the stricken power plant has been described as a comedy of errors. The constant stream of mistakes has been made worse by constant false denials and efforts to minimize major problems. Indeed the entire Fukushima catastrophe could have been avoided: "Tepco at first blamed the accident on ‘an unforeseen massive tsunami’ triggered by the Great East Japan Earthquake on March 11, 2011. Then it admitted it had in fact foreseen just such a scenario but hadn’t done anything about it."
  • The reality is Fukushima was plagued by human error from the outset.  An official Japanese government investigation concluded that the Fukushima accident was a "man-made" disaster, caused by "collusion" between government and Tepco and bad reactor design. On this point, TEPCO is not alone, this is an industry-wide problem. Many US nuclear plants have serious problems, are being operated beyond their life span, have the same design problems and are near earthquake faults. Regulatory officials in both the US and Japan are too corruptly tied to the industry. Then, the meltdown itself was denied for months, with TEPCO claiming it had not been confirmed.  Japan Times reports that "in December 2011, the government announced that the plant had reached ‘a state of cold shutdown.’ Normally, that means radiation releases are under control and the temperature of its nuclear fuel is consistently below boiling point."  Unfortunately, the statement was false – the reactors continue to need water to keep them cool, the fuel rods need to be kept cool – there has been no cold shutdown.
  • TEPCO has done a terrible job of cleaning up the plant.  Japan Times describes some of the problems: "The plant is being run on makeshift equipment and breakdowns are endemic. Among nearly a dozen serious problems since April this year there have been successive power outages, leaks of highly radioactive water from underground water pools — and a rat that chewed enough wires to short-circuit a switchboard, causing a power outage that interrupted cooling for nearly 30 hours. Later, the cooling system for a fuel-storage pool had to be switched off for safety checks when two dead rats were found in a transformer box."  TEPCO has been constantly cutting financial corners and not spending enough to solve the challenges of the Fukushima disaster resulting in shoddy practices that cause environmental damage. Washington’s Blog reports that the Japanese government is spreading radioactivity throughout Japan – and other countries – by burning radioactive waste in incinerators not built to handle such toxic substances. Workers have expressed concerns and even apologized for following order regarding the ‘clean-up.’
  • Indeed, the workers are another serious concern. The Guardian reported in October 2013 the plummeting morale of workers, problems of alcohol abuse, anxiety, loneliness, Post-Traumatic Stress Disorder and depression. TEPCO cut the pay of its workers by 20 percent in 2011 to save money even though these workers are doing very difficult work and face constant problems. Outside of work, many were traumatized by being forced to evacuate their homes after the Tsunami; and they have no idea how exposed to radiation they have been and what health consequences they will suffer. Contractors are hired based on the lowest bid, resulting in low wages for workers. According to the Guardian, Japan's top nuclear regulator, Shunichi Tanaka, told reporters: "Mistakes are often linked to morale. People usually don't make silly, careless mistakes when they're motivated and working in a positive environment. The lack of it, I think, may be related to the recent problems." The history of TEPCO shows we cannot trust this company and its mistreated workforce to handle the complex challenges faced at Fukushima. The crisis at Fukushima is a global one, requiring a global solution.
  • In an open letter to the United Nations, 16 top nuclear experts urged the government of Japan to transfer responsibility for the Fukushima reactor site to a worldwide engineering group overseen by a civil society panel and an international group of nuclear experts independent from TEPCO and the International Atomic Energy Administration , IAEA. They urge that the stabilization, clean-up and de-commissioning of the plant be well-funded. They make this request with "urgency" because the situation at the Fukushima plant is "progressively deteriorating, not stabilizing." 
  • The problems at Fukushima are in large part about facing reality – seeing the challenges, risks and potential harms from the incident. It is about TEPCO and Japan facing the reality that they are not equipped to handle the challenges of Fukushima and need the world to join the effort. 
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    Excellent roundup of evidence that the Fukushima disaster recovery process has gone badly awry and is devolving quickly to looming further disasters. Political momentum is gathering to wrest the recovery efforts away from the Japanese government and to place its leadership in the hands of an international group of experts. The disaster was far worse than its portrayal in mainstream media, is continuing, and even worse secondary disasters now loom. 
Paul Merrell

Exclusive: Secret contract tied NSA and security industry pioneer | Reuters - 0 views

  • (Reuters) - As a key part of a campaign to embed encryption software that it could crack into widely used computer products, the U.S. National Security Agency arranged a secret $10 million contract with RSA, one of the most influential firms in the computer security industry, Reuters has learned. Documents leaked by former NSA contractor Edward Snowden show that the NSA created and promulgated a flawed formula for generating random numbers to create a "back door" in encryption products, the New York Times reported in September. Reuters later reported that RSA became the most important distributor of that formula by rolling it into a software tool called Bsafe that is used to enhance security in personal computers and many other products.Undisclosed until now was that RSA received $10 million in a deal that set the NSA formula as the preferred, or default, method for number generation in the BSafe software, according to two sources familiar with the contract. Although that sum might seem paltry, it represented more than a third of the revenue that the relevant division at RSA had taken in during the entire previous year, securities filings show.
  • The earlier disclosures of RSA's entanglement with the NSA already had shocked some in the close-knit world of computer security experts. The company had a long history of championing privacy and security, and it played a leading role in blocking a 1990s effort by the NSA to require a special chip to enable spying on a wide range of computer and communications products.
  • The RSA deal shows one way the NSA carried out what Snowden's documents describe as a key strategy for enhancing surveillance: the systematic erosion of security tools. NSA documents released in recent months called for using "commercial relationships" to advance that goal, but did not name any security companies as collaborators.
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  • The NSA came under attack this week in a landmark report from a White House panel appointed to review U.S. surveillance policy. The panel noted that "encryption is an essential basis for trust on the Internet," and called for a halt to any NSA efforts to undermine it.
  • From RSA's earliest days, the U.S. intelligence establishment worried it would not be able to crack well-engineered public key cryptography. Martin Hellman, a former Stanford researcher who led the team that first invented the technique, said NSA experts tried to talk him and others into believing that the keys did not have to be as large as they planned.
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    Reuters gives the NSA's history of introducing backdoors in encryption standards a deep look, focusing on RSA's acceptance of a $10 million NSA bribe post-9/11 to implement the NSA-created Dual Elliptic Curve standard for generating "random" numbers, which had what Bruce Schneier described as a "back door." A tip of the hat to Miro for alerting me to this article.
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