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The Moody’s downgrade spurred some of Merrill’s partners to ask that contracts be moved to the retail unit, which has a higher credit rating, according to people familiar with the transactions. Transferring derivatives also can help the parent company minimize the collateral it must post on contracts and the potential costs to terminate trades after Moody’s decision, said a person familiar with the matter. Bank of America estimated in an August regulatory filing that a two-level downgrade by all ratings companies would have required that it post $3.3 billion in additional collateral and termination payments, based on over-the-counter derivatives and other trading agreements as of June 30. The figure doesn’t include possible collateral payments due to “variable interest entities,” which the firm is evaluating, it said in the filing.

Derivatives are financial instruments used to hedge risks or for speculation. They’re derived from stocks, bonds, loans, currencies and commodities, or linked to specific events such as changes in the weather or interest rates. Dodd-Frank Rules Keeping such deals separate from FDIC-insured savings has been a cornerstone of U.S. regulation for decades, including last year’s Dodd-Frank overhaul of Wall Street regulation. The legislation gave the FDIC, which liquidates failing banks, expanded powers to dismantle large financial institutions in danger of failing. The agency can borrow from the Treasury Department to finance the biggest lenders’ operations to stem bank runs. It’s required to recoup taxpayer money used during the resolution process through fees on the largest firms.

Bank of America’s holding company -- the parent of both the retail bank and the Merrill Lynch securities unit -- held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades. That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show.

Moving derivatives contracts between units of a bank holding company is limited under Section 23A of the Federal Reserve Act, which is designed to prevent a lender’s affiliates from benefiting from its federal subsidy and to protect the bank from excessive risk originating at the non-bank affiliate, said Saule T. Omarova, a law professor at the University of North Carolina at Chapel Hill School of Law. “Congress doesn’t want a bank’s FDIC insurance and access to the Fed discount window to somehow benefit an affiliate, so they created a firewall,” Omarova said. The discount window has been open to banks as the lender of last resort since 1914. As a general rule, as long as transactions involve high- quality assets and don’t exceed certain quantitative limitations, they should be allowed under the Federal Reserve Act, Omarova said.

In 2009, the Fed granted Section 23A exemptions to the banking arms of Ally Financial Inc., HSBC Holdings Plc, Fifth Third Bancorp, ING Groep NV, General Electric Co., Northern Trust Corp., CIT Group Inc., Morgan Stanley and Goldman Sachs Group Inc., among others, according to letters posted on the Fed’s website. The central bank terminated exemptions last year for retail-banking units of JPMorgan, Citigroup, Barclays Plc, Royal Bank of Scotland Plc and Deutsche Bank AG. The Fed also ended an exemption for Bank of America in March 2010 and in September of that year approved a new one. Section 23A “is among the most important tools that U.S. bank regulators have to protect the safety and soundness of U.S. banks,” Scott Alvarez, the Fed’s general counsel, told Congress in March 2008.

The overwhelming majority of his disclosures were to blow the whistle on US government deceit and radical, hidden domestic surveillance.

If his intent were to harm the US, he could have sold all the documents he had for a great deal of money, or indiscriminately published them, or passed them to a foreign adversary. He did none of that.

Given the extraordinary amount of documents he has and their sensitivity, I pointed out in the interview that it is incredibly foolish for the US government to force him to remain in Russia.

As a result of the documents he has, I said in the interview, the US government should be praying for his safety, not threatening or harming it.

Compare the attention paid to Snowden's asylum drama and alleged personality traits to the attention paid to the disclosures about mass, indiscriminate NSA spying. Or compare the media calls that Snowden (and others who worked to expose mass NSA surveillance) be treated like a criminal to the virtually non-existent calls that Director of National Intelligence James Clapper be treated like a criminal for lying to Congress.

There are all sorts of ways that Snowden could have chosen to make these documents be public. He chose the most responsible way possible: coming to media outlets and journalists he trusted and asking that they be reported on responsibly.

And today, nearly five years later, Saif remains the chosen son of the Libyan Arab Jamahiriya – a man who has endured five years of confinement at the hands of his one-time enemies, who has remained defiant of the US and of its puppet institutions such as the International Criminal Court. His is the man who for so many represents the promise of a better future by symbolizing a better past. And this is why factions inside Libya, and their backers in the US and Europe, are terrified of Saif al-Islam Gaddafi; they understand perfectly what he represents. They know that Saif commands the loyalty and respect of the majority of Libyans, far more than any other single faction. They know that Saif is backed by the most influential tribes in the country, as well as what remains of the Green Resistance which has emerged at key moments in the last few years, including the brief takeover of a critical air base in the southern city of Sabha in January 2014. They know that Saif is the only individual leader left in Libya who can unite the disparate political formations into a single force prepared to finally defeat the jihadist elements backed by the US-NATO. But the fear of Saif runs even deeper than just the theoretical leadership that he represents. Rather, the powers that be fear the political force he already is. When Saif’s death sentence was handed down by a kangaroo court in Tripoli, supporters of Gaddafi (Qadafi – Qaddafi edt) ) and the Jamhiriya took to the streets in Benghazi, Sirte, Bani Walid, and a number of other cities across the country, despite ISIS and Al Qaeda terrorists in control of much of those cities. At the risk of their own lives, these Libyans carried portraits of the assassinated Col. Gaddafi and Saif al-Islam, chanting their names and calling for a restoration of the socialist government. Consider the devotion necessary for followers to risk life and limb in a show of political support. Now imagine what would happen with Saif free.

Sources in Libya, and among those who have fled to neighboring countries, as well as Europe, have noted that elements of the former Gaddafi government have been working closely with the Sisi government in Egypt. While it is difficult to confirm independently, such a move is entirely plausible considering the common jihadi enemy both face in Libya which shares a long, porous border with Egypt. Assuming that the collaboration is true, it presents yet another reason why the US and its proxies, to say nothing of the terror groups inside Libya, would greatly fear Saif’s freedom. With the backing of an assertive Egypt, the all-important tribal councils, and elements of the disparate factions on the ground, Saif would instantly become the single most powerful man in Libya. And for those in the West, it is incumbent on everyone to vigorously and publicly defend Saif al-Islam Gaddafi, and to redouble efforts to back him. Saif represents a chance for Libya to be rebuilt, for the country to be pulled from the morass of chaos manufactured by the US and its NATO partners. Saif is the hope of the Libyan people who have suffered unspeakable horrors these last five years. Even those who have no love lost for Gaddafi understand the importance of reconstituting a single, united Libya under a single, united government. Only Saif al-Islam Gaddafi can do that now. And that’s why freedom for Saif might one day mean freedom for Libya.

“Where to begin? There’s the worldwide secret drone war—a massive break with international law. Then there’s the large and growing shadow army of private spies. And, finally, the asylum seekers, whose knowledge is unwittingly used to drop bombs in their home countries.“The worst part? Germany doesn't even seem to mind.”The series goes on at great detail in each of these areas. At times, it advances with videos, including one showing it's reporter being stopped from shooting video near the U.S. Embassy in Berlin, or near a number of bases, and allegedly secret bases, of both the United States and the United Kingdom around Germany.The series reports that the $3 billion a year the United States spends in Germany pay for everything from bases for the 43,000 U.S. soldiers stationed here to the American drone campaign in Africa. According to the newspaper’s English language version, that drone program works like this:

“First they practice with their 57 drones getting ready for the real thing. When they receive intelligence on potential targets and suspected terrorists, they deliver that information to U.S. intelligence officers, also based in Germany. And these soldiers are responsible when innocent civilians in Africa die as a result. Moral issues aside, the fact remains: without these bases in Germany, the U.S.’s ‘war on terror’ would not be the well-oiled machine it is now. Germany acts as the headquarters for secret wars in Africa, the European hub for CIA operations and the training ground for drone attacks worldwide. And Germany’s location is indispensable.”There is much, much more, here. And the website notes that stories will be coming out during the next several weeks. 

In fact, that number is and always has been a pure fabrication, as even Keith Alexander admits. The claimed number has changed more times than one can count: always magically morphing into randomly chosen higher and scarier numbers. The reality, in the words of the General, is that the US Government ”really [doesn't] know[] what he actually took with him” and they ”don’t have an accurate way of counting”. All they know is how many documents he accessed in his entire career at NSA, which is a radically different question from how many documents he took. But that hasn’t stopped American media outlets from repeatedly affirming the inflammatory evidence-free claim that Snowden took 1.7 million documents. As usual, even the most blatantly unreliable claims from National Security State officials are treated as infallible papal pronouncements by our Adversarial Watchdog Press. There’s an equally vital point made by Alexander’s admission. The primary defense of the NSA and its defenders is that one need not worry about the staggering sums of data they collect because they have implemented very rigorous oversight mechanisms and controls that prevent abuse. Yet Edward Snowden spent months downloading a large amount of highly sensitive documents right under their noses. And not only did they have no idea that he was doing it, but now – even after spending large sums of money to find out – they are still completely incapable of learning which documents he took or even how many he took. Does that at all sound like a well-managed, tightly controlled system that you can trust to safeguard your most personal data and to detect and prevent abuse of this system by the tens of thousands of people who have access to it?

The release date for my book on the NSA, privacy, and our reporting of the surveillance story, No Place to Hide, is next Tuesday, May 13, at which time all of the previously unpublished NSA documents that are reported on in the book will be placed online, with free access, at the book’s website.

Many on the Federal CIO Council could use some motivation, including the beleaguered State Department CIO, Steven Taylor. In office since April 3, 2013, Mr. Taylor is in charge of the Department's information resources and IT initiatives and services. He "is directly responsible for the Information Resource Management (IRM) Bureau's budget of $750 million, and oversees State's total IT/ knowledge management budget of approximately one billion dollars." Prior to his current position, Taylor served as Acting CIO from August 1, 2012, as the Department's Deputy Chief Information Officer (DCIO) and Chief Technology Officer of Operations from June 2011, and was the Program Director for the State Messaging and Archival Retrieval Toolset (SMART). While Hillary Clinton repeatedly claimed that because she sent her official e-mail to "government officials on their State or other .gov accounts ... the emails were immediately captured and preserved," a recent State Department Office of Inspector General report contradicts claims that DOS' e-mail archiving system, ironically named SMART, did so.

The report found that State Department "employees have not received adequate training or guidance on their responsibilities for using those systems to preserve 'record emails.'" In 2011, while Taylor was State's Chief Technology Officer of Operations, State Department employees only created 61,156 record e-mails out of more than a billion e-mails sent. In other words, roughly .006% of DOS e-mails were captured electronically. And in 2013, while Taylor was State's CIO, a paltry seven e-mails were preserved from the Office of the Secretary, compared to the 4,922 preserved by the Lagos Consulate in Nigeria. Even though the report notes that its assessments "do not apply to the system used by the Department's high-level principals, the Secretary, the Deputy Secretaries, the Under Secretaries, and their immediate staffs, which maintain separate systems," the State Department has not provided any estimation of the number of Clinton's e-mails that were preserved by recipients through the Department's anachronistic "print and file" system, or any other procedure.

The unfortunate silver lining of Hillary Clinton inappropriately appropriating public records as her own is that she likely preserved her records much more comprehensively than her State Department colleagues, most of whose e-mails have probably been lost under Taylor's IT leadership. 2008 reports by CREW, right, and the GAO, left, highlighted problems preserving e-mails. Click to enlarge. The bigger issue is that Federal IT gurus have known about this problem for years, and the State Department is not alone in not having done anything to fix it. A 2008 survey by Citizens for Responsibility and Ethics in Washington (CREW) and OpenTheGovernment.org did not find a single federal agency policy that mandates an electronic record keeping system agency-wide. Congressional testimony in 2008 by the Government Accountability Office indicted the standard "print and file" approach by pointing out:

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).

Troublingly, current Office of Management and Budget guidance does not require federal agencies to manage "all email records in an electronic format" until December 31, 2016. The only part of the federal government that seems to be facing up to the e-mail preservation challenge with any kind of "best practice" is the White House, where the Obama administration installed on day one an e-mail archiving system that preserves and manages even the President's own Blackberry messages. The National Security Archive brought the original White House e-mail lawsuit against President Reagan in early 1989, and continued the litigation against Presidents George H.W. Bush and Bill Clinton, until court orders compelled the White House to install the "ARMS" system to archive e-mail. The Archive sued the George W. Bush administration in 2007 after discovering that the Bush White House had junked the Clinton system without replacing its systematic archiving functions. CREW subsequently joined this suit and with the Archive negotiated a settlement with the Obama administration that included the recovery of as many as 22 million e-mails that were previously missing or misfiled.

s a result of two decades of the Archive's White House e-mail litigation, several hundred thousand e-mails survive from the Reagan White House, nearly a half million from the George H.W. Bush White House, 32 million from the Clinton White House, and an estimated 220 million from the George W. Bush White House. Previous recipients of the Rosemary Award include: 2013 - Director of National Intelligence James Clapper (for his "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?") 2012 - the Justice Department (in a repeat performance, for failing to update FOIA regulations to comply with the law, undermining congressional intent, and hyping its open government statistics)

Rogue Band of Federal E-mail Users and Abusers Compounds Systemic Problems Former Secretary of State Hillary Clinton and other federal officials who skirt or even violate federal laws designed to preserve electronic federal records compound e-mail management problems. Top government officials who use personal e-mail for official business include: Clinton; former U.S. Ambassador to Kenya Scott Gration; chairman of the U.S. Chemical Safety Board Rafael Moure-Eraso; and former Secretary of State Colin Powell, who told ABC's This Week "I don't have any to turn over. I did not keep a cache of them. I did not print them off. I do not have thousands of pages somewhere in my personal files." Others who did not properly save electronic federal records include Environmental Protection Agency former administrator Lisa Jackson who used the pseudonym Richard Windsor to receive email; current EPA administrator Gina McCarthy, who improperly deleted thousands of text messages (which also are federal records) from her official agency cell phone; and former Internal Revenue Service official Lois Lerner, whose emails regarding Obama's political opponents "went missing or became destroyed."

"agencies recognize that devoting significant resources to creating paper records from electronic sources is not a viable long-term strategy;" yet GAO concluded even the "print and file" system was failing to capture historic records "for about half of the senior officials."

The destruction of other federal records was even more blatant. Jose Rodriguez, the former CIA official in charge of the agency's defunct torture program ordered the destruction of key videos documenting it in 2005, claiming that "the heat from destroying [the torture videos] is nothing compared to what it would be if the tapes ever got into the public domain;" Admiral William McRaven, ordered the immediate destruction of any emails about Operation Neptune Spear, including any photos of the death of Osama bin Laden ("destroy them immediately"), telling subordinates that any photos should have already been turned over to the CIA — presumably so they could be placed in operational files out of reach of the FOIA. These rogues make it harder — if not impossible — for agencies to streamline their records management, and for FOIA requesters and others to obtain official records, especially those not exchanged with other government employees. The US National Archives currently trusts agencies to determine and preserve e-mails which agencies have "deemed appropriate for preservation" on their own, often by employing a "print and file" physical archiving process for digital records. Any future reforms to e-mail management must address the problems of outdated preservation technology, Federal Records Act violators, and the scary fact that only one per cent of government e-mail addresses are saved digitally by the National Archive's recently-initiated "Capstone" program.

Now that the Russian government understands that Russia must depart the dollar system in order to protect Russian sovereignty, President Putin has entered into barter/ruble oil deals with China and Iran. However, Washington objects to Russia abandoning the dollar international payment system. Zero Hedge, a more reliable news source than the US print and TV media, reports that Washington has conveyed to both Russia and Iran that a non-dollar oil deal would trigger US sanctions. http://www.zerohedge.com/news/2014-04-04/us-threatens-russia-sanctions-over-petrodollar-busting-deal Washington’s objection to the Russian/Iranian deal made it clear to all governments that Washington uses the dollar-based international payments system as a means of control. Why should countries accept an international payments system that infringes their sovereignty? What would happen if instead of passively accepting the dollar as the means of international payment, countries simply left the dollar system? The value of the dollar would fall and so would Washington’s power. Without the power that the dollar’s role as world reserve currency gives the US to pay its bills by printing money, the US could not maintain its aggressive military posture or its payoffs to foreign governments to do its bidding. Washington would be just another failed empire, whose population can barely make ends meet, while the One Percent who comprise the mega-rich compete with 200-foot yachts and $750,000 fountain pins. The aristocracy and the serfs. That is what America has already become. A throwback to the feudal era. It is only a matter of time before it is universally recognized that the US is a failed state. Let’s pray this recognition occurs before the arrogant inhabitants of Washington blow up the world in pursuit of hegemony over others.

Washington’s provocative military moves against Russia are reckless and dangerous. The buildup of NATO air, ground, and naval forces on Russia’s borders in violation of the 1997 NATO-Russian treaty and the Montreux Convention naturally strike the Russian government as suspicious, especially as the buildups are justified on the basis of lies that Russia is about to invade Poland, the Baltic States, and Moldova in addition to Ukraine. These lies are transparent. The Russian Foreign Minister Sergey Lavrov has asked NATO for an explanation, stating: “We are not only expecting answers, but answers that will be based fully on respect for the rules we agreed on.” http://rt.com/news/lavrov-ukraine-nato-convention-069/ Anders Fogh Rasmussen, Washington’s puppet installed as NATO figurehead who is no more in charge of NATO than I am, responded in a way guaranteed to raise Russian anxieties. Rasmussen dismissed the Russian Foreign Minister’s request for explanation as “propaganda and disinformation.” Clearly, what we are experiencing are rising tensions caused by Washington and NATO. These tensions are in addition to the tensions arising from Washington’s coup in Ukraine. These reckless and dangerous actions have destroyed the Russian government’s trust in the West and are moving the world toward war. Little did the protesters in Kiev, called into the streets by Washington’s NGOs, realize that their foolishness was setting the world on a path to armageddon.

The key variable from now on is how the PBSR gang will maneuver – possibly illegally — to cling to power. The Public Ministry and the Federal police are totally politicized. Increasingly there are no mediation powers. The PBSR gang will take no prisoners. The Public Ministry will go after Lula while the attorney general will try to block any chance of Rousseff being reinstated. Meanwhile, the social democrats turned neoliberal enforcers – key associates of the PBSR — will keep advancing their own agenda; hardcore privatizations; handing over the exploration of the pre-salt oil deposits to US Big Oil; and dutifully prostrating as Washington vassals. One just needs to examine the extreme interest by the US Department of Justice on all things related to the Car Wash investigation to infer how Washington is deeply involved in smashing leading Brazilian corporations.   

Washington has not had the balls to do it directly – relying on minions such as the State Department spokesman and the interim ambassador to the OAS. But the message is unmistakable; golpeachment is legal, and Washington trusts Brazilian “democratic institutions”. Compare it to the Russian Foreign Ministry, which alerted to “foreign interference” in Brazilian affairs. The new Brazilian Foreign Minister – a sore loser (twice) in presidential elections won by the Workers’ Party – took no time to launch his glorious Vassal of Washington/US Big Capital policy. He already issued a veiled “threat” to Cuba, Venezuela, Nicaragua, Bolivia, Ecuador and El Salvador. Mercosur will be sidelined to the benefit of the Pacific Alliance – where Mexico, Peru and Colombia are under Washington’s wings. Unasur will be ditched.

And then there’s the stale ice cream in the scoundrel’s tart; the “B” in BRICS is now dormant. This means the role of Brazil in the BRICS bank will be seriously compromised. Granted, the BRICS were never a homogenous group and have been riddled with conflicting interests. For instance, India’s nuclear-sharing agreement with the US effectively ties it up with Washington. The next BRICS summit is in India, in October. Brazil risks the ignominy of being represented by the PBSR gang.  Meanwhile, make no mistake; as much as the Car Wash investigation was revealed to be a totally politicized drive – where fighting corruption was just a convenient cover – the PBSR gang and their allies will do everything to get rid of the 2018 direct presidential elections. So here’s the sorry Brazilian road map up to 2018; total political, economic, social and juridical chaos. 

Consumer protection advocates are outraged that such radically pro-corporate deals are being hidden and negotiated away from public view. “Consumer organizations shouldn’t have to rely on leaks to find out about negotiations that will have a major impact on consumers’ lives,” said Amanda Long, general director of the UK-based Consumers International, on Wednesday. “Without greater transparency, the negotiations can’t be exposed to the scrutiny needed to design a good agreement and build public trust, this must be a priority.” The impact of such an agreement will indeed be major: “The TISA provisions in their current form will establish a wide range of new grounds for domestic regulations to be challenged by corporations—even those without a local presence in that country,” WikiLeaks concluded. Kelsey observed, “As President Obama said of the [TPP] in October 2015, these agreements are about the U.S. making the rules for the global economy in the 21st century[…] in ways that ‘reflect America’s values.'”

As much as Russia may be downsizing, Iran (and Hezbollah) are not. Tehran has trained and weaponized key paramilitary forces – thousands of soldiers from Iraq and Afghanistan fighting side by side with Hezbollah and the Syrian Arab Army (SAA). The SAA will keep advancing and establishing facts on the ground. As the Geneva negotiations pick up, those facts are now relatively frozen. Which brings us to the key sticking point in Geneva – which has got to be included in the possible grand bargain. The grand bargain is based on the current ceasefire (or "cessation of hostilities") holding, which is far from a given. Assuming all these positions hold, a federal Syria could emerge, what could be dubbed Break Up Light.

And yet, in the shadows, lurks the possibility that Russian intel may be ready to strike a deal with the Turkish military – with the corollary that a possible removal of Sultan Erdogan would pave the way for the reestablishment of the Russia-Turkey friendship, essential for Eurasia integration.

Only the proverbially clueless Western corporate media was caught off-guard by Russia’s latest diplomatic coup in Syria. Consistency has been the norm. Russia has been consistently upgrading the Russia-China strategic partnership. This has run in parallel to the hybrid warfare in Ukraine (asymmetric operations mixed with economic, political, military and technological support to the Donetsk and Lugansk republics); even NATO officials with a decent IQ had to admit that without Russian diplomacy there’s no solution to the war in Donbass. In Syria, Moscow accomplished the outstanding feat of making Team Obama see the light beyond the fog of neo-con-instilled war, leading to a solution involving Syria’s chemical arsenal after Obama ensnared himself in his own red line. Obama owes it to Putin and Lavrov, who literally saved him not only from tremendous embarrassment but from yet another massive Middle East quagmire.

Russia will be closely monitoring the current “cessation of hostilities”; and if the War Party decides to ramp up “support” for ISIS/ISIL/Daesh or the “moderate rebel” front via any shadow war move, Russia will be back in a flash. As for Sultan Erdogan, he can brag what he wants about his “no-fly zone” pipe dream; but the fact is the northwestern Syria-Turkish border is now fully protected by the S-400 air defense system. Moreover, the close collaboration of the “4+1” coalition – Russia, Syria, Iran, Iraq, plus Hezbollah – has broken more ground than a mere Russia-Shi’te alignment. It prefigures a major geopolitical shift, where NATO is not the only game in town anymore, dictating humanitarian imperialism; this “other” coalition could be seen as a prefiguration of a future, key, global role for the Shanghai Cooperation Organization.

As we stand, it may seem futile to talk about winners and losers in the five-year-long Syrian tragedy – especially with Syria destroyed by a vicious, imposed proxy war. But facts on the ground point, geopolitically, to a major victory for Russia, Iran and Syrian Kurds, and a major loss for Turkey and the GCC petrodollar gang, especially considering the huge geo-energy interests in play. It’s always crucial to stress that Syria is an energy war – with the “prize” being who will be better positioned to supply Europe with natural gas; the proposed Iran-Iraq-Syria pipeline, or the rival Qatar pipeline to Turkey that would imply a pliable Damascus. Other serious geopolitical losers include the self-proclaimed humanitarianism of the UN and the EU. And most of all the Pentagon and the CIA and their gaggle of weaponized “moderate rebels”. It ain’t over till the last jihadi sings his Paradise song. Meanwhile, “time out” Russia is watching.

The senators said they were seeking public answers to the following questions in order to give the American people the information they need to conduct an informed public debate. The specific questions include:• How long has the NSA used Patriot Act authorities to engage in bulk collection of Americans' records? Was this collection underway when the law was reauthorized in 2006?• Has the NSA used USA Patriot Act authorities to conduct bulk collection of any other types of records pertaining to Americans, beyond phone records?• Has the NSA collected or made any plans to collect Americans' cell-site location data in bulk?• Have there been any violations of the court orders permitting this bulk collection, or of the rules governing access to these records? If so, please describe these violations.

They ask Clapper to publicly provide information about the duration and scope of the program and provide examples of its effectiveness in providing unique intelligence, if such examples exist.The senators also expressed their concern that the program itself has a significant impact on the privacy of law-abiding Americans and that the Patriot Act could be used for the bulk collection of records beyond phone metadata."The Patriot Act's 'business records' authority can be used to give the government access to private financial, medical, consumer and firearm sales records, among others," said a press statement.In addition to raising concerns about the law's scope, the senators noted that keeping the official interpretation of the law secret and the instances of misleading public statements from executive branch officials prevented the American people from having an informed public debate about national security and domestic surveillance.

A bipartisan group of 26 US senators has written to intelligence chiefs to complain that the administration is relying on a "secret body of law" to collect massive amounts of data on US citizens.The senators accuse officials of making misleading statements and demand that the director of national intelligence James Clapper answer a series of specific questions on the scale of domestic surveillance as well as the legal justification for it.In their strongly-worded letter to Clapper, the senators said they believed the government may be misinterpreting existing legislation to justify the sweeping collection of telephone and internet data revealed by the Guardian."We are concerned that by depending on secret interpretations of the Patriot Act that differed from an intuitive reading of the statute, this program essentially relied for years on a secret body of law," they say."This and misleading statements by intelligence officials have prevented our constituents from evaluating the decisions that their government was making, and will unfortunately undermine trust in government more broadly."

He praised the revelations and bravery of former NSA contractor Edward Snowden and told me that he had indirect contact with a number of other NSA employees who felt disgusted with the agency’s work. They’re keen to speak out but fear retribution and exile, not unlike Snowden himself, who is likely to remain there for some time.

Binney recently told the German NSA inquiry committee that his former employer had a “totalitarian mentality” that was the "greatest threat" to US society since that country’s US Civil War in the 19th century. Despite this remarkable power, Binney still mocked the NSA’s failures, including missing this year’s Russian intervention in Ukraine and the Islamic State’s take-over of Iraq.The era of mass surveillance has gone from the fringes of public debate to the mainstream, where it belongs. The Pew Research Centre released a report this month, Digital Life in 2025, that predicted worsening state control and censorship, reduced public trust, and increased commercialisation of every aspect of web culture.It’s not just internet experts warning about the internet’s colonisation by state and corporate power. One of Europe’s leading web creators, Lena Thiele, presented her stunning series Netwars in London on the threat of cyber warfare. She showed how easy it is for governments and corporations to capture our personal information without us even realising.Thiele said that the US budget for cyber security was US$67 billion in 2013 and will double by 2016. Much of this money is wasted and doesn't protect online infrastructure. This fact doesn’t worry the multinationals making a killing from the gross exaggeration of fear that permeates the public domain.

Wikileaks understands this reality better than most. Founder Julian Assange and investigative editor Sarah Harrison both remain in legal limbo. I spent time with Assange in his current home at the Ecuadorian embassy in London last week, where he continues to work, release leaks, and fight various legal battles. He hopes to resolve his predicament soon.At the Centre for Investigative Journalism conference, Harrison stressed the importance of journalists who work with technologists to best report the NSA stories. “It’s no accident”, she said, “that some of the best stories on the NSA are in Germany, where there’s technical assistance from people like Jacob Appelbaum.” A core Wikileaks belief, she stressed, is releasing all documents in their entirety, something the group criticised the news site The Intercept for not doing on a recent story. “The full archive should always be published”, Harrison said.

With 8m documents on its website after years of leaking, the importance of publishing and maintaining source documents for the media, general public and court cases can’t be under-estimated. “I see Wikileaks as a library”, Assange said. “We’re the librarians who can’t say no.”With evidence that there could be a second NSA leaker, the time for more aggressive reporting is now. As Binney said: “I call people who are covering up NSA crimes traitors”.

That pseudo-explanation will likely do little to quell the security community’s doubts. Even if the hackers appeared to fail to use proxies on some occasions, it could still be very difficult to be sure those “real” IP addresses weren’t proxies themselves designed to serve as further misdirection. And a nagging loose thread remains that the Guardians of Peace hackers in their initial statements to Sony tried to extort money from the company before making any political demands. Sony’s Kim Jong-un assassination comedy “The Interview,” the suppression of which is believed by many to be the North Korean government’s motive in the hack, wasn’t even mentioned by the hackers until long after the intrusion was underway. Comey didn’t address that plot hole in the North Korean explanation in his speech.