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Paul Merrell

Court upholds NSA snooping | TheHill - 0 views

  • A district court in California has issued a ruling in favor of the National Security Agency in a long-running case over the spy agency’s collection of Internet records.The challenge against the controversial Upstream program was tossed out because additional defense from the government would have required “impermissible disclosure of state secret information,” Judge Jeffrey White wrote in his decision.ADVERTISEMENTUnder the program — details of which were revealed through leaks from Edward Snowden and others — the NSA taps into the fiber cables that make up the backbone of the Internet and gathers information about people's online and phone communications. The agency then filters out communications of U.S. citizens, whose data is protected with legal defenses not extended to foreigners, and searches for “selectors” tied to a terrorist or other target.In 2008, the Electronic Frontier Foundation (EFF) sued the government over the program on behalf of five AT&T customers, who said that the collection violated the constitutional protections to privacy and free speech.
  • But “substantial details” about the program still remain classified, White, an appointee under former President George W. Bush, wrote in his decision. Moving forward with the merits of a trial would risk “exceptionally grave damage to national security,” he added. <A HREF="http://ws-na.amazon-adsystem.com/widgets/q?rt=tf_mfw&ServiceVersion=20070822&MarketPlace=US&ID=V20070822%2FUS%2Fthehill07-20%2F8001%2Fdffbe72d-f425-4b83-b07e-357ae9d405f6&Operation=NoScript">Amazon.com Widgets</A> The government has been “persuasive” in using its state secrets privilege, he continued, which allows it to withhold evidence from a case that could severely jeopardize national security.   In addition to saying that the program appeared constitutional, the judge also found that the AT&T customers did not even have the standing to sue the NSA over its data gathering.While they may be AT&T customers, White wrote that the evidence presented to the court was “insufficient to establish that the Upstream collection process operates in the manner” that they say it does, which makes it impossible to tell if their information was indeed collected in the NSA program.  The decision is a stinging rebuke to critics of the NSA, who have seen public interest in their cause slowly fade in the months since Snowden’s revelations.
  • The EFF on Tuesday evening said that it was considering next steps and noted that the court focused on just one program, not the totality of the NSA’s controversial operations.“It would be a travesty of justice if our clients are denied their day in court over the ‘secrecy’ of a program that has been front-page news for nearly a decade,” the group said in a statement.“We will continue to fight to end NSA mass surveillance.”The name of the case is Jewel v. NSA. 
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    The article should have mentioned that the decision was on cross-motions for *partial* summary judgment. The Jewel case will proceed on other plaintiff claims. 
Paul Merrell

Former Israeli Opposition Leader Puts Bibi-Boehner Ploy Bluntly « LobeLog - 0 views

  • Yossi Sarid, the former head of Israel’s Meretz Party and leader of the opposition in the Knesset from 2001 to 2003, has just written a very blunt—far too blunt for “acceptable” political discourse in Washington, DC—op-ed published Sunday by Haaretz. Unfortunately, it’s behind a pay wall, so the most I can do is extract a few excerpts. The title is straightforward: “Beware: Republican Jews on the Warpath,” and Sarid, who also served as minister of education under Ehud Barak, doesn’t pull any punches about what Boehner’s fraudulent invitation to Israeli Prime Minister Benjamin Netanyahu is really all about. Now it’s no longer a “crisis in the relationship” that they try to paper over; now it’s no longer just “tensions with the White House” that they’re making every effort to reduce in between meetings; now, it’s an open war with the United States. It’s Sheldon Adelson versus Barack Obama, and Israel is caught in the cross-fire. After Vice President Joe Biden, our greatest friend over there, announced an unspecified trip abroad that will prevent him from being in Congress at the fateful hour, Republican Jewish organizations launched a campaign of intimidation against those lawmakers who had already announced their intent to skip the joint session: Their political fate will be bitter.
  • …Ambassador to Washington Ron Dermer, in the service of his master, is rallying his troops and launching a combined assault on Capitol Hill. Benjamin Netanyahu is determined to show the president once and for all who really rules in Washington, who is the landlord both here and there. … One Matthew Brooks – the executive director of the Republican Jewish Coalition, who does the will of its financial backers – explained over the weekend, “We will commit whatever resources we need to make sure that people are aware of the facts, that given the choice to stand with Israel and Prime Minister Netanyahu in opposition to a nuclear Iran, they chose partisan interests and to stand with President Obama.” Mort Klein, president of the Zionist Organization of America, added unambiguously, “We will, of course, be publicly condemning any Democrats who don’t show up for the speech — unless they have a doctor’s note.” Doctor, this man is sick and urgently needs tranquilizers.
  • … Israel, which until now was a cornerstone of bipartisanship, has become loathsome to its traditional supporters. Benjamin Nitay Netanyahu, the Israeli-American, has made it into something that reeks, even among its longtime supporters. In these very moments, the protocols are being rewritten. Rich Jews are writing them in their own handwriting. They, in their wealth, are confirming with their own signatures what anti-Semites used to slander them with in days gone by: We, the elders of Zion, pull the strings of Congress, and the congressmen are nothing but marionettes who do our will. If they don’t understand our words, they’ll understand our threats. And if in the past, we ran the show from behind the scenes, now we’re doing it openly, from center stage. And if you forget our donations, the wellspring will run dry.
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  • You’ll remember that Obama, during an off-the-record meeting with Democratic senators three weeks ago, reportedly appealed to them to resist “donors and others” who opposed a deal with Iran and were pushing for new sanctions legislation that risked sabotaging the nuclear-focused talks with Iran and an eventual deal. Sen. Robert Menendez, who has been pushing for such legislation for more than a year, reportedly replied that he took “personal offense” at Obama’s remarks about donors, apparently interpreting Obama’s comments as suggesting that Menendez’s position was motivated by his desire and need for campaign cash. The New York Times helpfully noted in a profile of Menendez that the New Jersey senator had received $341,170 from hard-line pro-Israel groups over the past seven years, “more than any other Democrat in the Senate.” (In fact, he received more money than any other Senate candidate—Democratic or Republican—in the 2012 elections, while his Republican comrade-in-arms and co-sponsor for sanctions legislation, Illinois Sen. Mark Kirk, has received more campaign cash from pro-Israel political actions committees (PACs) associated with the American Israel Public Affairs Committee (AIPAC) than any other member of Congress over the past decade. And that doesn’t necessarily include all the much-harder-to-track money provided by donors like Adelson, who chairs Brooks’s RJC, through super PACS and other vehicles.)  Indeed, there’s no doubt that Obama’s reference to “donors” touched a very sensitive nerve with Menendez. Sarid, whose op-ed is most unlikely to appear in any mainstream U.S. publication, has now pounded it with a sledgehammer.
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    There it is, finally out in the open. 
Paul Merrell

HSBC files show how Swiss bank helped clients dodge taxes and hide millions | Business | The Guardian - 0 views

  • HSBC’s Swiss banking arm helped wealthy customers dodge taxes and conceal millions of dollars of assets, doling out bundles of untraceable cash and advising clients on how to circumvent domestic tax authorities, according to a huge cache of leaked secret bank account files. The files – obtained through an international collaboration of news outlets, including the Guardian, the French daily Le Monde, BBC Panorama and the Washington-based International Consortium of Investigative Journalists – reveal that HSBC’s Swiss private bank: • Routinely allowed clients to withdraw bricks of cash, often in foreign currencies of little use in Switzerland. • Aggressively marketed schemes likely to enable wealthy clients to avoid European taxes. • Colluded with some clients to conceal undeclared “black” accounts from their domestic tax authorities. • Provided accounts to international criminals, corrupt businessmen and other high-risk individuals.
  • The revelations will amplify calls for crackdowns on offshore tax havens and stoke political arguments in the US, Britain and elsewhere in Europe where exchequers are seen to be fighting a losing battle against fleet-footed and wealthy individuals in the globalised world. Approached by the Guardian, HSBC, the world’s second largest bank, has now admitted wrongdoing by its Swiss subsidiary. “We acknowledge and are accountable for past compliance and control failures,” the bank said in a statement. The Swiss arm, the statement said, had not been fully integrated into HSBC after its purchase in 1999, allowing “significantly lower” standards of compliance and due diligence to persist. That response raises serious questions about oversight of the Swiss operation by the then senior executives of its parent company, HSBC Group, headquartered in London. It has now acknowledged that it was not until 2011 that action was taken to bring the Swiss bank into line. “HSBC was run in a more federated way than it is today and decisions were frequently taken at a country level,” the bank said.
  • Although tax authorities around the world have had confidential access to the leaked files since 2010, the true nature of the Swiss bank’s misconduct has never been made public until now. Hollywood stars, shopkeepers, royalty and clothing merchants feature in the files along with the heirs to some of Europe’s biggest fortunes.
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  • The files show how HSBC in Switzerland keenly marketed tax avoidance strategies to its wealthy clients. The bank proactively contacted clients in 2005 to suggest ways to avoid a new tax levied on the Swiss savings accounts of EU citizens, a measure brought in through a treaty between Switzerland and the EU to tackle secret offshore accounts. The documents also show HSBC’s Swiss subsidiary providing banking services to relatives of dictators, people implicated in African corruption scandals, arms industry figures and others. Swiss banking rules have since 1998 required high levels of diligence on the accounts of politically connected figures, but the documents suggest that at the time HSBC happily provided banking services to such controversial individuals. The Guardian’s evidence of a pattern of misconduct at HSBC in Switzerland is supported by the outcome of recent court cases in the US and Europe.
  • HSBC is already facing criminal investigations and charges in France, Belgium, the US and Argentina as a result of the leak of the files, but no legal action has been taken against it in Britain. Former tax inspector Richard Brooks tells BBC Panorama in a programme to be aired on Monday night: “I think they were a tax avoidance and tax evasion service. I think that’s what they were offering. “There are very few reasons to have an offshore bank account, apart from just saving tax. There are some people who can use an ... account to avoid tax legally. For others it’s just a way to keep money secret.”
Paul Merrell

Thousands Join Legal Fight Against UK Surveillance - And You Can, Too - The Intercept - 0 views

  • Thousands of people are signing up to join an unprecedented legal campaign against the United Kingdom’s leading electronic surveillance agency. On Monday, London-based human rights group Privacy International launched an initiative enabling anyone across the world to challenge covert spying operations involving Government Communications Headquarters, or GCHQ, the National Security Agency’s British counterpart. The campaign was made possible following a historic court ruling earlier this month that deemed intelligence sharing between GCHQ and the NSA to have been unlawful because of the extreme secrecy shrouding it.
  • Consequently, members of the public now have a rare opportunity to take part in a lawsuit against the spying in the Investigatory Powers Tribunal, a special British court that handles complaints about surveillance operations conducted by law enforcement and intelligence agencies. Privacy International is allowing anyone who wants to participate to submit their name, email address and phone number through a page on its website. The group plans to use the details to lodge a case with GCHQ and the court that will seek to discover whether each participant’s emails or phone calls have been covertly obtained by the agency in violation of the privacy and freedom of expression provisions of the European Convention on Human Rights. If it is established that any of the communications have been unlawfully collected, the court could force GCHQ to delete them from its vast repositories of intercepted data.
  • By Tuesday evening, more than 10,000 people had already signed up to the campaign, a spokesman for Privacy International told The Intercept. In a statement announcing the campaign on Monday, Eric King, deputy director of Privacy International, said: “The public have a right to know if they were illegally spied on, and GCHQ must come clean on whose records they hold that they should never have had in the first place. “We have known for some time that the NSA and GCHQ have been engaged in mass surveillance, but never before could anyone explicitly find out if their phone calls, emails, or location histories were unlawfully shared between the U.S. and U.K. “There are few chances that people have to directly challenge the seemingly unrestrained surveillance state, but individuals now have a historic opportunity finally hold GCHQ accountable for their unlawful actions.”
Paul Merrell

Iceland convicts bad bankers and says other nations can act | Reuters - 0 views

  • Iceland's Supreme Court has upheld convictions of market manipulation for four former executives of the failed Kaupthing bank in a landmark case that the country's special prosecutor said showed it was possible to crack down on fraudulent bankers. Hreidar Mar Sigurdsson, Kaupthing's former chief executive, former chairman Sigurdur Einarsson, former CEO of Kaupthing Luxembourg Magnus Gudmundsson, and Olafur Olafsson, the bank's second largest shareholder at the time, were all sentenced on Thursday to between four and five and a half years.The verdict is the heaviest for financial fraud in Iceland's history, local media said. Kaupthing collapsed under heavy debts after the 2008 financial crisis and the four former executives now live abroad. Though they sometimes returned to Iceland to collaborate with the court investigation, none were present on Thursday.Iceland's government appointed a special prosecutor to investigate its bankers after the world's financial systems were rocked by the discovery of huge debts and widespread poor corporate governance. He said Thursday's ruling was a signal to countries slow to pursue similar cases that no individual was too big to be prosecuted.
  • "This case...sends a strong message that will wake up discussion," special prosecutor Olafur Hauksson told Reuters. "It shows that these financial cases may be hard, but they can also produce results."Not all of Iceland's prosecutions have succeeded. But the country's efforts contrast with the United States and particularly Europe, where though some banks have been fined, few executives have been tried and voters suffering post-crisis austerity conditions feel bankers got off lightly.A recent scandal at the Swiss private bank of Europe's biggest lender HSBC has highlighted the controversy again and sparked a political row about whether the bank did enough to pursue possible tax dodgers..
  • Iceland struggled initially to appoint a special prosecutor. Hauksson, 50, a policeman from a small fishing village, was encouraged to put in for the job after the initial advertisement drew no applications. Nor have all of his prosecutions been trouble-free: two former bank executives were acquitted in one case, while sentences imposed on others have been criticized for being too light.However, Icelandic lower courts have convicted the chief executives of all three of its largest banks for their responsibility in a crisis that prosecutors said highlighted the operations of a club of wealth financiers in a country of just 320,000 people.They also convicted former chief executives of two other major banks, Glitnir and Landsbanki, for charges ranging from fraud and market manipulation.Parliament relaxed bank secrecy laws in Iceland to help the prosecutors investigate bank documents without court orders."Why should we have a part of our society that is not being policed or without responsibility?" Hauksson said. "It is dangerous that someone is too big to investigate - it gives a sense there is a safe haven."Seven criminal cases involving bankers have made it to the Supreme Court, which upheld six of them. Five more, including cases of CEOs - are due to be heard by the top court. Another 14 cases are awaiting possible prosecution, Hauksson said.
Paul Merrell

Meet The Big Wallets Pushing Obama Towards A New Cold War - WhoWhatWhy - 0 views

  • There’s a familiar ring to the U.S. calls to arm Ukraine’s post-coup government. That’s because the same big-money players who stand to benefit from belligerent relations with Russia haven’t forgotten a favorite Cold War tune. President Obama has said that he won’t rule out arming Ukraine if a recent truce, which has all but evaporated, fails like its predecessor. His comments echoed the advice of a report issued a week prior by three prominent U.S. think tanks: the Brookings Institute, the Chicago Council on Global Affairs and the Atlantic Council. The report advocated sending $1 billion worth of “defensive” military assistance to Kiev’s pro-Western government. If followed, those recommendations would bring the U.S. and Russia the closest to conflict since the heyday of the Cold War. Russia has said that it would “respond asymmetrically against Washington or its allies on other fronts” if the U.S. supplies weapons to Kiev. The powers with the most skin in the game—France, Germany, Russia and Ukraine—struck a deal on Feb. 12, which outlines the terms for a ceasefire between Kiev and the pro-Russian, breakaway provinces in eastern Ukraine. It envisages a withdrawal of heavy weaponry followed by local elections and constitutional reform by the end of 2015, granting more autonomy to the eastern regions.
  • But not all is quiet on the eastern front. The truce appears to be headed the route of a nearly identical compromise in September, which broke down immediately afterward. Moscow’s national security interests are clear. Washington’s are less so, unless you look at the bottom lines of defense contractors. As for those in the K Street elite pushing Uncle Sam to confront the bear, it isn’t hard to see what they have to gain. Just take a look below at the blow-by-blow history of their Beltway-bandit benefactors:
Paul Merrell

"Secret Scheme To Manipulate The Price Of Silver" - Lawsuits Against Banks Proceed | InvestmentWatch - 1 views

  • Litigation alleging that Deutsche Bank, Bank of Nova Scotia and HSBC Plc illegally fixed the price of silver were centralised in a Manhattan federal court yesterday. The banks have been accused of rigging the price of billions of dollars in silver to the detriment of investors globally. Lawsuits filed by investors since July over the allegations were consolidated yesterday in the U.S. District Court for the Southern District of New York, following an order issued last Thursday by the U.S. Judicial Panel on Multidistrict Litigation, a special body of federal judges that decides when and where to consolidate related lawsuits. The banks abused their position of controlling the daily silver fix to reap illegitimate profit from trading, hurting other investors in the silver market who use the benchmark in billions of dollars of transactions, according to the suit. Investors claim, the banks unlawfully manipulated silver and silver futures.
  • The U.S. Judicial Panel on Multidistrict Litigation ruled that the cases should be handled by U.S. District Judge Valerie Caproni in Manhattan, who is already overseeing similar litigation over alleged gold price fixing. Three lawsuits were originally filed in Manhattan, and two were filed in Brooklyn. The plaintiffs in the Brooklyn lawsuits had sought to have the litigation consolidated there. The banks had also asked that the litigation be consolidated in Brooklyn, in the Eastern District of New York. However, the multidistrict litigation panel said Manhattan made more sense because the defendants all had corporate offices there and also because the cases involved issues similar to the gold litigation. The plaintiffs allege that the banks abused their power as participants in the silver fix, a London based benchmark pricing method dating back to the Victorian era, in which banks fixed silver prices once a day by phone. In August, the system was replaced by a new benchmark system administered by the CME (Chicago Mercantile Exchange) and Thomson Reuters.
  • HSBC spokesman Neil Brazil declined to comment and representatives of the other banks did not immediately respond to requests for comment. This follows the initiation of similar actions against some bullion banks for alleged gold price manipulation earlier this year. The three named banks, Deutsche Bank, Bank of Nova Scotia, and HSBC are alleged to have abused their position at the LBMA to profit from inside knowledge. The fixing of the price of silver is a daily operation where banks on the panel of the LBMA agree on a price for the precious metals which are then used throughout the financial, jewellery and mining industries throughout the day. It is alleged that some of the banks who fix the price, position themselves advantageously in the silver market before the price is made public. “Defendants have a strong financial incentive to establish positions in both physical silver and silver derivatives prior to the public release of silver fixing results, allowing them to reap large illegitimate profits,” plaintiff Scott Nicholson told the AFP. Separately, Bullion Desk reported yesterday that JPMorgan Chase Bank is now the fifth accredited member of the silver pricing benchmark, the LBMA has confirmed, with others parties “in the pipeline”, a spokesman said.
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  • The American multinational bank which has been the subject of silver manipulation allegations by Max Keiser and others, took part in its first silver benchmarking session yesterday. A spokesperson said they had completed “strict regulatory controls” for accredited members.. JP Morgan becomes the fifth member, alongside HSBC Bank USA, Mitsui & Co Precious Metals, the Bank of Nova Scotia – ScotiaMocatta and UBS AG. Furthermore, the LBMA has confirmed that several other parties are also in the process of joining the list, subject to passing regulatory requirements. Several Chinese banks have expressed interest in participating in the new global price setting mechanism for silver, according to the head of the LBMA. The LBMA ushered in a new era of electronic benchmarking for London’s precious metals market in August when an algorithm was used for the first time to set the benchmark price for silver after recent scandals regarding price fixing and concerns about the nature of the gold and silver fix. It will be interesting to see if Chinese banks partake in the new fix process as the concern is that the fixes remain the play things of certain western banks and are not representative of global physical demand and supply of actual gold and silver bullion.
  • Manipulation of the silver market was covered in a recently released ‘Get REAL’ Special on Silver presented by Jan Skoyles. Mark O’Byrne of Goldcore.com was interviewed and the interview was an in depth look at this silver market today.
Paul Merrell

In Report to UN Committee Against Torture, US Government Touts Division That Doesn't Really Prosecute Torturers | The Dissenter - 0 views

  • The United States government submitted its “periodic report” to the United Nations Committee Against Torture. There are multiple glaring aspects of the government’s report on how it believes it is complying fully with the Convention Against Torture (CAT), however, one part of the report where the government claims to have done what it was supposed to do to investigate torture stands out. In particular, the government highlights a Justice Department division as a challenge to impunity for torture, which appears to have prosecuted zero public cases of torture against US officials. To those unfamiliar, countries which are signatories to the CAT are expected to submit reports every four years to the committee. The committee reviews the report and then issues its own “concluding observations” with concerns and recommendations to the “State party.”
  • One of the committee’s “observations” in its 2006 report involved “reliable reports of acts of torture or cruel, inhuman and degrading treatment or punishment committed by certain members of the State party’s military or civilians personnel in Afghanistan and Iraq.” It was also “concerned that the investigation and prosecution of many of these cases, including some resulting in the death of detainees,” had “led to lenient sentences, including of an administrative nature or less than one year’s imprisonment.” The committee requested that the US government explain the following in its report: (a) Steps taken to ensure that all forms of torture and ill-treatment of detainees by its military or civilian personnel, in any territory under its de facto and de jure jurisdiction, as well as in any other place under its effective control, is promptly, impartially and thoroughly investigated, and that all those responsible, including senior military and civilian officials authorizing, acquiescing or consenting in any way to such acts committed by their subordinates are prosecuted and appropriately punished, in accordance with the seriousness of the crime (para. 26). Are all suspects in prima facie cases of torture and ill-treatment as a rule suspended or reassigned during the process of investigation?
  • The government answered [PDF], “US law provides jurisdiction in a number of ways that could be relied on for criminal prosecution of torture and ill-treatment of detainees” and some examples. One could read this as, theoretically, if the US government wanted to prosecute US officials involved in torture, this is what is available in US law to do just that.
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  • Later, the government adds: …In March 2010, the [Justice Department] announced the merger of two Criminal Division components that were responsible for investigating and prosecuting various types of human rights violations. The creation of the new component, the Human Rights and Special Prosecutions Section (HRSP), underscores the commitment of United States authorities to end impunity for torturers and other human rights violators. HRSP and other DOJ components have prosecuted U.S. military and civilian personnel who have perpetrated human rights violations outside the United States… Although the government acknowledges the merger was “intended to enhance the government’s effectiveness in pursuing violators and denying them safe haven in the United States,” the detail is being provided within the context of what the US government is doing to prosecute US military and civilian personnel, who are implicated in acts of torture.
  • The Human Rights and Special Prosecutions section does not prosecute US officials involved in torture or human rights abuses.
  • What it has not prosecuted recently—Or, more importantly, what it has not publicly pursued is accountability for officials involved in torture in war zones like Afghanistan or Iraq. It has not sought to hold former Bush administration officials accountable for their role in torture in war zones or in secret detention facilities, where CIA interrogators operated either. The UN Committee Against Torture should not be misled. The HRSP has nothing to do with challenging the impunity US military and civilian personnel currently enjoy when it comes to torture. And, more than likely, it may never hold any current or former high-ranking officials accountable.
Paul Merrell

Occupier orders Palestinian lawmaker Khalida Jarrar held six months without charge or trial | The Electronic Intifada - 0 views

  • After seizing her from her home in the middle of the night last week, Israeli occupation forces have ordered that a Palestinian lawmaker be held without charge or trial for six months. Palestinian Legislative Council member Khalida Jarrar was given a so-called “administrative detention” order on Sunday, the Palestinian prisoners’ rights group Addameer said in a statement.
  • Jarrar is one of 15 Palestinian legislators and 23 female political prisoners currently detained by Israeli occupation forces, Addameer states. Jarrar, a prominent member of the Popular Front for the Liberation of Palestine, is closely involved in prisoner issues. Last August, Israeli occupation forces issued Jarrar with an order banishing her to Jericho. She defied the order, remaining in her home in the occupied West Bank town of al-Bireh from where she was arrested by dozens of armed soldiers.
  • There are currently six thousand Palestinian political detainees in Israeli prisons, including almost 500 administrative detainees, according to Addameer’s most recent statistics. Human rights defenders have consistently condemned Israel’s practice of prolonged detention of Palestinians without charge or trial. In a 2012 report, Amnesty International called on Israel to stop using administrative detention – a relic of British colonial rule in Palestine – and urged “the immediate and unconditional release [of] prisoners of conscience held just for peacefully exercising their rights to freedom of expression and assembly.” Amnesty says that administrative detainees, like many other Palestinian prisoners, “have been subjected to violations such as the use of torture and other ill-treatment during interrogation, as well as cruel and degrading treatment during their detention, sometimes as punishment for hunger strikes or other protests.”
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  • Administrative detention orders are indefinitely renewable. Addameer says that it considers administrative detention to be a war crime under the terms of the Fourth Geneva Convention governing the rights of civilians in occupied territory. Jarrar’s arrest, it states, is “part of the systemic targeting of Palestinian political figures in order to criminalize their work and to silence them and stop them from practicing their roles in defending and supporting the Palestinian cause.”
Paul Merrell

Iceland looks at ending boom and bust with radical money plan - Telegraph - 0 views

  • Iceland's government is considering a revolutionary monetary proposal - removing the power of commercial banks to create money and handing it to the central bank. The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled "A better monetary system for Iceland". "The findings will be an important contribution to the upcoming discussion, here and elsewhere, on money creation and monetary policy," Prime Minister Sigmundur David Gunnlaugsson said. The report, commissioned by the premier, is aimed at putting an end to a monetary system in place through a slew of financial crises, including the latest one in 2008.
  • He argued the central bank was unable to contain the credit boom, allowing inflation to rise and sparking exaggerated risk-taking and speculation, the threat of bank collapse and costly state interventions. In Iceland, as in other modern market economies, the central bank controls the creation of banknotes and coins but not the creation of all money, which occurs as soon as a commercial bank offers a line of credit. The central bank can only try to influence the money supply with its monetary policy tools. Under the so-called Sovereign Money proposal, the country's central bank would become the only creator of money. "Crucially, the power to create money is kept separate from the power to decide how that new money is used," Mr Sigurjonsson wrote in the proposal.
  • Banks would continue to manage accounts and payments, and would serve as intermediaries between savers and lenders. Mr Sigurjonsson, a businessman and economist, was one of the masterminds behind Iceland's household debt relief programme launched in May 2014 and aimed at helping the many Icelanders whose finances were strangled by inflation-indexed mortgages signed before the 2008 financial crisis. The small Nordic country was hit hard as the crash of US investment bank Lehman Brothers caused the collapse of its three largest banks. Iceland then became the first western European nation in 25 years to appeal to the International Monetary Fund to save its battered economy. Its GDP fell by 5.1pc in 2009 and 3.1pc in 2010 before it started rising again.
Paul Merrell

Ex-Blackwater Guards Given Long Terms for Killing Iraqis - NYTimes.com - 0 views

  • One by one, four former Blackwater security contractors wearing blue jumpsuits and leg irons stood before a federal judge on Monday and spoke publicly for the first time since a deadly 2007 shooting in Iraq.The men had been among several private American security guards who fired into Baghdad’s crowded Nisour Square on Sept. 16, 2007, and last October they were convicted of killing 14 unarmed Iraqis in what prosecutors called a wartime atrocity. Yet on Monday, as they awaited sentences that they knew would send them to prison for most if not all of their lives, they defiantly asserted their innocence.
  • The judge, Royce C. Lamberth, strongly disagreed, sentencing Mr. Slatten to life in prison and handing 30-year sentences to the three others. A fifth former guard, Jeremy P. Ridgeway of California, had pleaded guilty to voluntary manslaughter and testified against his former colleagues. He has not been sentenced but testified that he hoped to avoid any prison time.The ruling ended a long investigation into the Nisour Square shooting, a signature, gruesome moment in the Iraq war that highlighted America’s reliance on private contractors to maintain security in combat zones.
  • No such company was more powerful than Blackwater, which won more than $1 billion in government contracts. Its employees, most of them military veterans, protected American diplomats overseas and became enmeshed in the Central Intelligence Agency’s clandestine counterterrorism operations. Its founder, Erik Prince, was a major donor to the Republican Party.
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  • The Nisour Square shooting transformed Blackwater from America’s most prominent security contractor into a symbol of unchecked and privatized military power. The incident also became a notorious low point in the war, along with the massacre by Marines of 24 civilians at Haditha and the abuses at Abu Ghraib prison.
  • While the prosecution ends with the sentences, the legal case is sure to continue for years. The case raised many new legal issues, including whether State Department contractors are covered by American criminal law when operating overseas.The 30-year sentences, while significant, could have been much longer. For using machine guns to commit violent crimes, they faced mandatory minimum 30-year sentences under a law passed during the crack cocaine epidemic. Prosecutors had wanted the judge to hand down sentences of 50 years or more.
Paul Merrell

POGO Provides Statement for House Hearing on VA Whistleblowers - 0 views

  • In the spring of 2014, the Project On Government Oversight (POGO) put out the call to whistleblowers within the Department of Veterans Affairs (VA) to provide an inside perspective on the issues the Department was facing. In our 34-year history, POGO has never received as many submissions on a single issue. Nearly 800 current and former VA employees and veterans from 35 states and the District of Columbia contacted us. POGO reviewed each of the submissions, and found that concerns about the VA go far beyond long or falsified wait times for medical appointments; they extend to the quality of health care services veterans receive. A recurring and fundamental theme became clear: VA employees across the country fear they will face repercussions if they dare to raise a dissenting voice. POGO wrote a letter to Acting VA Secretary Sloan Gibson in July last year, highlighting three specific cases of current or former employees who agreed to share details about their personal experiences of retaliation.[1] In California, a VA inpatient pharmacy supervisor was placed on administrative leave and ordered not to speak out after protesting “inordinate delays” in delivering medication to patients and “refusal to comply with VHA regulations.” In one case, he said, a veteran’s epidural drip of pain control medication ran dry, and another veteran developed a high fever after he was administered a chemotherapy drug after its expiration point.
  • In Pennsylvania, a former VA doctor told POGO that he had been removed from clinical work and forced to spend his days in an office with nothing to do. This action occurred after he complained that, in medical emergencies, physicians who were supposed to be on call were failing or refusing to report to the hospital. The Office of Special Counsel (OSC) shared his concerns, writing “[w]e have concluded that there is a substantial likelihood that the information that you provided to OSC discloses a substantial and specific danger to public health and safety.”[2] In Appalachia, a former VA nurse told POGO she was intimidated by management and forced out of her job after she raised concerns that patients with serious injuries were being neglected. In one case she was reprimanded for referring a patient to the VA’s patient advocate after weeks of being unable to arrange transportation for a medical test to determine if he was in danger of sudden death. “Such an upsetting thing for a nurse just to see this blatant neglect occur almost on a daily basis. It was not only overlooked but appeared to be embraced,” she said. She also pointed out that there is “a culture of bullying employees….It’s just a culture of harassment that goes on if you report wrongdoing,” she said.
  • That culture doesn’t appear to be limited to just one or two VA clinics. Some people, including former employees who are now beyond the reach of VA management, were willing to be interviewed by POGO and to be quoted by name, but others said they contacted us anonymously because they are still employed at the VA and are worried about retaliation. One put it this way: “Management is extremely good at keeping things quiet and employees are very afraid to come forward.” This kind of fear and suppression of whistleblowers who report wrongdoing often culminates in the larger problems, as the VA is currently experiencing. By now it is well known that employees who recently raised concerns about veteran wait times faced reprisal. But whistleblower retaliation in the VA is nothing new. In 1992 a congressional report detailed the experiences of VA employees who were harassed or fired after reporting problems.[3] Throughout the 1990s there were several congressional hearings conducted on the quality of care at VA hospitals and on reprisal against VA employees who exposed inadequate care.[4] Despite then-Secretary Togo D. West’s declaration that such reprisals would not be tolerated, a House hearing in 1999 found that the reprisal problems still existed.[5] A Government Accountability Report from 2000 found that many VA employees were unaware of their rights to protections against retaliation for blowing the whistle on wrongdoing.[6] The report also found that the majority of employees feared retaliation and were therefore unwilling to report misconduct.
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  • The Office of Special Counsel (OSC) has been working to investigate claims of retaliation and get favorable actions for many of the VA whistleblowers who have come forward. Since April 2014, the OSC has successfully obtained corrective actions for over 25 whistleblowers.[7] But the OSC still has over 100 pending VA reprisal cases to investigate, among the highest of any government agency, according to Special Counsel Carolyn Lerner.[8] Although the VA has been cooperative with the OSC and their recommendations, merely addressing isolated incidents is not enough.[9] The VA has been struggling with a culture problem for decades and something more must be done.
  • VA employees who have concerns about management or fear retaliation are supposed to be able to turn to the VA’s Office of Inspector General (OIG). But whistleblowers have come to doubt the VA IG’s willingness to hold wrongdoers accountable. Since 2014, the IG Office has not yet publically released any investigation into employee retaliation, making it difficult to assess how seriously the IG’s office is taking this issue. Furthermore, the VA IG’s office issued an administrative subpoena to POGO in May 2014 that was little more than an invasive fishing expedition for whistleblowers. The IG demanded “All records that POGO has received from current or former employees of the Department of Veterans Affairs, and other individuals or entities.”[10] Though POGO did not comply with the subpoena, such an action was cause for concern for many of the whistleblowers who had shared information with us. POGO remains concerned that there is not a permanent VA IG in place and that the position has been vacant for over a year.[11] Our own investigations have found that the absence of permanent leadership can have a serious impact on the effectiveness of an IG office.[12] Acting IGs do not undergo the same kind of extensive vetting process required of permanent IGs, and as a consequence usually lack the credibility of a permanent IG. Acting IGs also often seek appointment to the permanent position, which can compromise their independence by giving them an incentive to curry favor with the White House and the leadership of their agency.[13] Perhaps most worrisome, given the significant challenges facing the VA IG, a 2009 study found that vacancies in top agency positions promote agency inaction, create confusion among career employees, make an agency less likely to handle controversial issues, result in fewer enforcement actions by regulatory agencies and decrease public trust in government.[14]
  • It appears the VA IG may be subject to this dangerous lack of independence. For example, the VA OIG has failed to release the results of 140 health care investigations since 2006.[15] Furthermore, the Department of Treasury IG sent a letter to this Committee just last month raising concerns about another VA IG investigation. After speaking to witnesses familiar with the situation, the Treasury IG concluded that their testimony, “calls into question the integrity of the VA OIG’s actions in this particular manner.” The Treasury IG’s investigation also found that multiple witnesses stated a VA employee boasted about his ability to influence the VA OIG’s investigations.[16]
  • In POGO’s 2014 letter, we recommended concrete steps for incoming VA Secretary McDonald to take in order to demonstrate an agency-wide commitment to changing the VA’s culture of fear, bullying, and retaliation. Neither Acting Secretary Sloan Gibson nor Secretary McDonald have responded to our multiple requests for a meeting. Clearly, an important first step will be for the President to nominate a permanent IG for the VA. Hopefully strong and committed leadership in that office will correct its current course. POGO recommended that Secretary McDonald make a tangible and meaningful gesture to support those whistleblowers who have been trying to fix the VA from the inside. Once the OSC has identified meritorious cases, Secretary McDonald should personally meet with those whistleblowers and elevate their status from villain to hero. These employees should be publicly celebrated for their courage, and should receive positive recognition in their personnel files, including possibly receiving the types of bonuses that have been provided to wrongdoers in the past. Retaliation against whistleblowers is already a prohibited personnel practice, but it will be up to the senior-most VA leadership to ensure that this rule is enforced by the agency. This should not be an isolated event done in response to recent criticisms but an ongoing effort. Whistleblowing must be encouraged and celebrated or wrongdoing will continue.
  • But it’s not just the VA Secretary who can work to fix this problem. Congress should enact legislation that codifies accountability for those who retaliate against whistleblowers. The definition of “wrongdoing” must include retaliation. The cultural shift that is required inside the Department of Veterans Affairs must be accompanied by statutory mandates that protect whistleblowers and witnesses inside the agency from retaliation. Legislation should ensure that whistleblowers are able to be confident that stepping forward to expose wrongdoing will not result in retaliation, and should provide a system to hold retaliators within the VA accountable. Congress should also extend whistleblower protections to contractors and veterans who raise concerns about medical care provided by the VA. POGO’s investigation found that both of these groups also fear retaliation that prevents them from coming forward. While federal employees working at the VA enjoy whistleblower protections, contractors do not. Congress should extend the same protections to contractors in order to promote internal oversight in an increasingly contractor-heavy landscape.
  • In addition, a veteran who is receiving poor care should be able to speak to his or her patient advocate without fear of retaliation, including a reduction in the quality of health care. Without this reassurance, there is a disincentive to report poor care, allowing it to continue uncorrected. Congress should extend whistleblower protections to veteran whistleblowers. The VA and Congress must work together to end this culture of fear and retaliation. Whistleblowers who report concerns that affect veteran health must be lauded, not shunned. And the law must protect them.
Paul Merrell

Jerusalem at boiling point of polarisation and violence - EU report | World news | The Guardian - 0 views

  • A hard-hitting EU report on Jerusalem warns that the city has reached a dangerous boiling point of “polarisation and violence” not seen since the end of the second intifada in 2005. Calling for tougher European sanctions against Israel over its continued settlement construction in the city – which it blames for exacerbating recent conflict – the leaked document paints a devastating picture of a city more divided than at any time since 1967, when Israeli forces occupied the east of the city. The report has emerged amid strong indications that the Obama administration is also rethinking its approach to Israel and the Middle East peace process following the re-election of Binyamin Netanyahu as Israel’s prime minister. According to reports in several US papers, this may include allowing the passage of a UN security council resolution restating the principle of a two-state solution. The leaked report describes the emergence of a “vicious cycle of violence … increasingly threatening the viability of the two-state solution”, which it says has been stoked by the continuation of “systematic” settlement building by Israel in “sensitive areas” of Jerusalem.
  • For its part, Israel rejects the charge of illegal settlement-building in Jerusalem, claiming the city as its “undivided capital”. Among the recommendations in the report are: Potential new restrictions against “known violent settlers and those calling for acts of violence as regards immigration regulations in EU member states”. Further coordinated steps to ensure consumers in the EU are able to exercise their right to informed choice in respect of settlement products in line with existing EU rules. New efforts to raise awareness among European businesses about the risks of working with settlements, and the advancement of voluntary guidelines for tourism operators to prevent support for settlement business.
  • The disclosure of the 2014 report – which suggests a series of potential punitive measures targeting extremist settlers and settlement products – comes days after Israeli elections which saw Netanyahu emerge as the decisive victor.
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  • According to well-informed European sources, the report – now being discussed in Brussels – reflects a strong desire from European governments for additional measures against Israel over its continued settlement-building, and comes at a time when Europe is confronting “the new reality” of a new and potentially more rightwing Netanyahu government. The report also follows a period of growing frustration within the EU over the moribund state of the peace process, which collapsed last year, and pressure to adopt a harder line over issues such as settlement-building. Since Netanyahu’s victory on Tuesday, speculation has been mounting that both the US and the EU are looking for alternative and tougher strategies to push forward the stalled peace process.
Paul Merrell

Information Warfare: Automated Propaganda and Social Media Bots | Global Research - 0 views

  • NATO has announced that it is launching an “information war” against Russia. The UK publicly announced a battalion of keyboard warriors to spread disinformation. It’s well-documented that the West has long used false propaganda to sway public opinion. Western military and intelligence services manipulate social media to counter criticism of Western policies. Such manipulation includes flooding social media with comments supporting the government and large corporations, using armies of sock puppets, i.e. fake social media identities. See this, this, this, this and this. In 2013, the American Congress repealed the formal ban against the deployment of propaganda against U.S. citizens living on American soil. So there’s even less to constrain propaganda than before.
  • Information warfare for propaganda purposes also includes: The Pentagon, Federal Reserve and other government entities using software to track discussion of political issues … to try to nip dissent in the bud before it goes viral “Controlling, infiltrating, manipulating and warping” online discourse Use of artificial intelligence programs to try to predict how people will react to propaganda
  • Some of the propaganda is spread by software programs. We pointed out 6 years ago that people were writing scripts to censor hard-hitting information from social media. One of America’s top cyber-propagandists – former high-level military information officer Joel Harding – wrote in December: I was in a discussion today about information being used in social media as a possible weapon.  The people I was talking with have a tool which scrapes social media sites, gauges their sentiment and gives the user the opportunity to automatically generate a persuasive response. Their tool is called a “Social Networking Influence Engine”. *** The implications seem to be profound for the information environment. *** The people who own this tool are in the civilian world and don’t even remotely touch the defense sector, so getting approval from the US Department of State might not even occur to them.
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  • How Can This Real? Gizmodo reported in 2010: Software developer Nigel Leck got tired rehashing the same 140-character arguments against climate change deniers, so he programmed a bot that does the work for him. With citations! Leck’s bot, @AI_AGW, doesn’t just respond to arguments directed at Leck himself, it goes out and picks fights. Every five minutes it trawls Twitter for terms and phrases that commonly crop up in Tweets that refute human-caused climate change. It then searches its database of hundreds to find a counter-argument best suited for that tweet—usually a quick statement and a link to a scientific source. As can be the case with these sorts of things, many of the deniers don’t know they’ve been targeted by a robot and engage AI_AGW in debate. The bot will continue to fire back canned responses that best fit the interlocutor’s line of debate—Leck says this goes on for days, in some cases—and the bot’s been outfitted with a number of responses on the topic of religion, where the arguments unsurprisingly often end up. Technology has come a long way in the past 5 years. So if a lone programmer could do this 5 years ago, imagine what he could do now. And the big players have a lot more resources at their disposal than a lone climate activist/software developer does.  For example, a government expert told the Washington Post that the government “quite literally can watch your ideas form as you type” (and see this).  So if the lone programmer is doing it, it’s not unreasonable to assume that the big boys are widely doing it.
  • How Effective Are Automated Comments? Unfortunately, this is more effective than you might assume … Specifically, scientists have shown that name-calling and swearing breaks down people’s ability to think rationally … and intentionally sowing discord and posting junk comments to push down insightful comments  are common propaganda techniques. Indeed, an automated program need not even be that sophisticated … it can copy a couple of words from the main post or a comment, and then spew back one or more radioactive labels such as “terrorist”, “commie”, “Russia-lover”, “wimp”, “fascist”, “loser”, “traitor”, “conspiratard”, etc. Given that Harding and his compadres consider anyone who questions any U.S. policies as an enemy of the state  – as does the Obama administration (and see this) – many honest, patriotic writers and commenters may be targeted for automated propaganda comments.
Paul Merrell

US-Saudi Blitz into Yemen: Naked Aggression, Absolute Desperation | Global Research - Centre for Research on Globalization - 0 views

  • The “proxy war” model the US has been employing throughout the Middle East, Eastern Europe, and even in parts of Asia appears to have failed yet again, this time in the Persian Gulf state of Yemen. Overcoming the US-Saudi backed regime in Yemen, and a coalition of sectarian extremists including Al Qaeda and its rebrand, the “Islamic State,” pro-Iranian Yemeni Houthi militias have turned the tide against American “soft power” and has necessitated a more direct military intervention. While US military forces themselves are not involved allegedly, Saudi warplanes and a possible ground force are. Though Saudi Arabia claims “10 countries” have joined its coalition to intervene in Yemen, like the US invasion and occupation of Iraq hid behind a “coalition,” it is overwhelmingly a Saudi operation with “coalition partners” added in a vain attempt to generate diplomatic legitimacy. The New York Times, even in the title of its report, “Saudi Arabia Begins Air Assault in Yemen,” seems not to notice these “10” other countries. It reports:
  • Saudi Arabia announced on Wednesday night that it had launched a military campaign in Yemen, the beginning of what a Saudi official said was an offensive to restore a Yemeni government that had collapsed after rebel forces took control of large swaths of the country.  The air campaign began as the internal conflict in Yemen showed signs of degenerating into a proxy war between regional powers. The Saudi announcement came during a rare news conference in Washington by Adel al-Jubeir, the kingdom’s ambassador to the United States.
  • Indeed, the conflict in Yemen is a proxy war. Not between Iran and Saudi Arabia per say, but between Iran and the United States, with the United States electing Saudi Arabia as its unfortunate stand-in. Iran’s interest in Yemen serves as a direct result of the US-engineered “Arab Spring” and attempts to overturn the political order of North Africa and the Middle East to create a unified sectarian front against Iran for the purpose of a direct conflict with Tehran. The war raging in Syria is one part of this greater geopolitical conspiracy, aimed at overturning one of Iran’s most important regional allies, cutting the bridge between it and another important ally, Hezbollah in Lebanon. And while Iran’s interest in Yemen is currently portrayed as yet another example of Iranian aggression, indicative of its inability to live in peace with its neighbors, US policymakers themselves have long ago already noted that Iran’s influence throughout the region, including backing armed groups, serves a solely defensive purpose, acknowledging the West and its regional allies’ attempts to encircle, subvert, and overturn Iran’s current political order.
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  • What may result is a conflict that spills over Yemen’s borders and into Saudi Arabia proper. Whatever dark secrets the Western media’s decades of self-censorship regarding the true sociopolitical nature of Saudi Arabia will become apparent when the people of the Arabian peninsula must choose to risk their lives fighting for a Western client regime, or take a piece of the peninsula for themselves. Additionally, a transfer of resources and fighters arrayed under the flag of the so-called “Islamic State” and Al Qaeda from Syria to the Arabian Peninsula will further indicate that the US and its regional allies have been behind the chaos and atrocities carried out in the Levant for the past 4 years. Such revelations will only further undermine the moral imperative of the West and its regional allies, which in turn will further sabotage their efforts to rally support for an increasingly desperate battle they themselves conspired to start.
  • The aerial assault on Yemen is meant to impress upon onlookers Saudi military might. A ground contingent might also attempt to quickly sweep in and panic Houthi fighters into folding. Barring a quick victory built on psychologically overwhelming Houthi fighters, Saudi Arabia risks enveloping itself in a conflict that could easily escape out from under the military machine the US has built for it. It is too early to tell how the military operation will play out and how far the Saudis and their US sponsors will go to reassert themselves over Yemen. However, that the Houthis have outmatched combined US-Saudi proxy forces right on Riyadh’s doorstep indicates an operational capacity that may not only survive the current Saudi assault, but be strengthened by it. Reports that Houthi fighters have employed captured Yemeni warplanes further bolsters this notion – revealing tactical, operational, and strategic sophistication that may well know how to weather whatever the Saudis have to throw at it, and come back stronger.
  • The unelected hereditary regime ruling over Saudi Arabia, a nation notorious for egregious human rights abuses, and a land utterly devoid of even a semblance of what is referred to as “human rights,” is now posing as arbiter of which government in neighboring Yemen is “legitimate” and which is not, to the extent of which it is prepared to use military force to restore the former over the latter. The United States providing support for the Saudi regime is designed to lend legitimacy to what would otherwise be a difficult narrative to sell. However, the United States itself has suffered from an increasing deficit in its own legitimacy and moral authority. Most ironic of all, US and Saudi-backed sectarian extremists, including Al Qaeda in Yemen, had served as proxy forces meant to keep Houthi militias in check by proxy so the need for a direct military intervention such as the one now unfolding would not be necessary. This means that Saudi Arabia and the US are intervening in Yemen only after the terrorists they were supporting were overwhelmed and the regime they were propping up collapsed. In reality, Saudi Arabia’s and the United States’ rhetoric aside, a brutal regional regime meddled in Yemen and lost, and now the aspiring global hemegon sponsoring it from abroad has ordered it to intervene directly and clean up its mess.
  • the Yemeni people are not being allowed to determine their own affairs. Everything up to and including military invasion has been reserved specifically to ensure that the people of Yemen do not determine things for themselves, clearly, because it does not suit US interests. Such naked hypocrisy will be duly noted by the global public and across diplomatic circles. The West’s inability to maintain a cohesive narrative is a growing sign of weakness. Shareholders in the global enterprise the West is engaged in may see such weakness as a cause to divest – or at the very least – a cause to diversify toward other enterprises. Such enterprises may include Russia and China’s mulipolar world. The vanishing of Western global hegemony will be done in destructive conflict waged in desperation and spite. Today, that desperation and spite befalls Yemen.
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    Usually I agree with Tony Cartalucci, but I think it's too early to pick winners and losers in Yemen. At least a couple of other nations allied with the Saudis are flying aerial missions and there's a commitment of troops and air support by Egypt, although it isn't clear that these would enter Yemen, but may just deploy to "protect" the waters approaching the Suez Canal from the Yemenis. The Saudis have a surfeit of U.S. weaponry but their military is inexperienced. The House of Saud has preferred proxy wars conducted by Salafist mercenaries over direct military intervention. How effective its military will be is a very big unknown at this point. But I like Cartalucci's point that if the House of Saud has to send in its ISIL mercenaries, it will go a long way toward unmasking the U.S. excuse for invading Syria and resuming boots on the ground in Iraq.
Paul Merrell

Your guide to 'Operation Decisive Storm' - Al Arabiya News - 0 views

  • Your guide to ‘Operation Decisive Storm’
  • Allies with their fighter jets on Thursday joined Saudi Arabia in its “Decisive Storm” military operation, targeting Houthi rebels who had vowed to dislodge President Abdrabbu Mansour Hadi.
  • Al Arabiya News Channel reported that Saudi Arabia deployed 150,000 soldiers, 100 fighter jets and navy units in Yemen after Hadi pleaded with its Gulf ally for help against the Houthi rebels, who were advancing toward the southern city of Aden - where Hadi is based - to remove him from power in an attempted coup. The Royal Saudi Air Force took control of Yemen’s airspace early Thursday, and destroyed four Houthi jets and its surface-to-air (SAM) missiles.
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  • With the exception of Oman, members of the Gulf States joined Saudi Arabia with its aerial bombardment of the Houthis. The UAE contributed with 30 fighter jets, Bahrain 15, Kuwait 15, Qatar 10. Non-Gulf states have also showed their support to “Operation Decisive Storm.” Jordan deployed six fighter jets, Morocco, who expressed “complete solidarity” to Saudi Arabia provided six fighter jets while Sudan supplied three. On Thursday, an army media site confirmed that Sudan took part in the Saudi-led military operation. There were no further details but the site said the army spokesman would soon comment.
  • Al Arabiya News Channel said Egypt and Pakistan would dispatch jet fighters and warships to take part in the campaign. On Thursday, Egypt confirmed it will join the Saudi-led coalition. “Coordination is under way with Saudi Arabia and the Gulf states to prepare for participation by the Egyptian air force and Egyptian navy, and a ground force if the situation warrants, as part of the coalition action,” the Egyptian foreign ministry said in a statement. Another Egyptian military source said that Egypt participated in the military operation with both its naval and air forces. Later, Egyptian officials said four warships entered Suez en route to Gulf of Aden to give further support to Operation “Decisive Storm.”
  • In addition to the Arab states support, U.S. President Barack Obama authorized the provision of logistical and intelligence support to “Decisive Storm.”
  • Houthi politburo official Mohammed al-Bukhaiti told Reuters, that the Shiite group is prepared to confront the Saudi-led campaign without calling for help from their ally Iran. Asked if there had been any communications with Iran since the start of the attacks, or if the Houhtis would seek military help from Tehran, Bukhaiti said: “No. The Yemeni people are prepared to face this aggression without any foreign interference.”
  • On Thursday, the Saudi defense minister warned the son of toppled Yemeni leader, Ahmed Ali Saleh not to attack Aden. Many Adenis see former president Ali Abdullah Saleh, a fierce critic of Hadi, as the real instigator behind the expansion of the Shiite Muslim Houthi movement to their city. Saleh was the author of the city’s previous humiliation in 1994, when as president he crushed a southern secessionist uprising in a short but brutal war.
  • Despite seceding power in 2011 after mass protests against his rule, Saleh is still highly influential in the military. The Republican Guard troops are still loyal to him, and are believed to be backing the Houthi forces fighting Hadi. Before Saudi Arabia declared its military offensive, young men brandishing AK-47s patrolled the streets of Aden on Wednesday and government employees headed home as Houthi forces attempted their advance toward the city.
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    Note Obama's statement that the U.S. will provide logistic and intelligence support. Elsewhere, I saw an article saying that the House of Saud did not tell the U.S. it planned to invade Yemen until immediately before the invasion commenced.  The coalition from its makeup looks to be Sunni-governed nations ganging up on the Shia rebels in Yemen. 
Paul Merrell

Running for Cover: A Sham Air Force Summit Can't Fix the Close Air Support Gap Created by Dumping the A-10 - 0 views

  • “I can’t wait to be relieved of the burdens of close air support,” Major General James Post, the vice commander of Air Combat Command (ACC), allegedly told a collection of officers at a training session in August 2014. As with his now notorious warning that service members would be committing treason if they communicated with Congress about the successes of the A-10, Major General Post seems to speak for the id of Air Force headquarters’ true hostility towards the close air support (CAS) mission. Air Force four-stars are working hard to deny this hostility to the public and Congress, but their abhorrence of the mission has been demonstrated through 70 years of Air Force headquarters’ budget decisions and combat actions that have consistently short-changed close air support. For the third year in a row (many have already forgotten the attempt to retire 102 jets in the Air Force’s FY 2013 proposal), the Air Force has proposed retiring some or all of the A-10s, ostensibly to save money in order to pay for “modernization.” After failing to convince Congress to implement their plan last year (except for a last minute partial capitulation by retiring Senate and House Armed Services Committee chairmen Senator Carl Levin (D-MI) and Representative Buck McKeon (R-CA)) and encountering uncompromising pushback this year, Air Force headquarters has renewed its campaign with more dirty tricks.
  • First, Air Force headquarters tried to fight back against congressional skepticism by releasing cherry-picked data purporting to show that the A-10 kills more friendlies and civilians than any other U.S. Air Force plane, even though it actually has one of the lowest fratricide and civilian casualty rates. With those cooked statistics debunked and rejected by Senate Armed Services Chairman Senator John McCain (R-AZ), Air Force headquarters hastily assembled a joint CAS “Summit” to try to justify dumping the A-10. Notes and documents from the Summit meetings, now widely available throughout the Air Force and shared with the Project On Government Oversight’s Center for Defense Information (CDI), reveal that the recommendations of the Summit working groups were altered by senior Air Force leaders to quash any joint service or congressional concerns about the coming gaps in CAS capabilities. Air Force headquarters needed this whitewash to pursue, yet again, its anti-A-10 crusade without congressional or internal-Pentagon opposition.
  • The current A-10 divestment campaign, led by Air Force Chief of Staff Mark Welsh, is only one in a long chain of Air Force headquarters’ attempts by bomber-minded Air Force generals to get rid of the A-10 and the CAS mission. The efforts goes as far back as when the A-10 concept was being designed in the Pentagon, following the unfortunate, bloody lessons learned from the Vietnam War. For example, there was a failed attempt in late-1980s to kill off the A-10 by proposing to replace it with a supposedly CAS-capable version of the F-16 (the A-16). Air Force headquarters tried to keep the A-10s out of the first Gulf War in 1990, except for contingencies. A token number was eventually brought in at the insistence of the theater commander, and the A-10 so vastly outperformed the A-16s that the entire A-16 effort was dismantled. As a reward for these A-10 combat successes, Air Force headquarters tried to starve the program by refusing to give the A-10 any funds for major modifications or programmed depot maintenance during the 1990s. After additional combat successes in the Iraq War, the Air Force then attempted to unload the A-10 fleet in 2004.
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  • To ground troops and the pilots who perform the mission, the A-10 and the CAS mission are essential and crucial components of American airpower. The A-10 saves so many troop lives because it is the only platform with the unique capabilities necessary for effective CAS: highly maneuverable at low speeds, unmatched survivability under ground fire, a longer loiter time, able to fly more sorties per day that last longer, and more lethal cannon passes than any other fighter. These capabilities make the A-10 particularly superior in getting in close enough to support our troops fighting in narrow valleys, under bad weather, toe-to-toe with close-in enemies, and/or facing fast-moving targets. For these reasons, Army Chief of Staff General Ray Odierno has called the A-10 “the best close air support aircraft.” Other Air Force platforms can perform parts of the mission, though not as well; and none can do all of it. Senator Kelly Ayotte (R-NH) echoed the troops’ combat experience in a recent Senate Armed Services committee hearing: “It's ugly, it's loud, but when it comes in…it just makes a difference.”
  • In 2014, Congress was well on the way to roundly rejecting the Air Force headquarters’ efforts to retire the entire fleet of 350 A-10s. It was a strong, bipartisan demonstration of support for the CAS platform in all four of Congress’s annual defense bills. But in the final days of the 113th Congress, a “compromise” heavily pushed by the Air Force was tucked into the National Defense Authorization Act for FY 2015. The “compromise” allowed the Air Force to move A-10s into virtually retired “backup status” as long as the Cost Assessment and Program Evaluation (CAPE) office in DoD certified that the measure was the only option available to protect readiness. CAPE, now led by former Assistant Secretary of the Air Force for Financial Management and Comptroller Jamie Morin, duly issued that assessment—though in classified form, thus making it unavailable to the public. In one of his final acts as Secretary of Defense, Chuck Hagel then approved moving 18 A-10s to backup status.
  • The Air Force intends to replace the A-10 with the F-35. But despite spending nearly $100 billion and 14 years in development, the plane is still a minimum of six years away from being certified ready for any real—but still extremely limited—form of CAS combat. The A-10, on the other hand, is continuing to perform daily with striking effectiveness in Afghanistan, Iraq, and Syria—at the insistence of the CENTCOM commander and despite previous false claims from the Air Force that A-10s can’t be sent to Syria. A-10s have also recently been sent to Europe to be available for contingencies in Ukraine—at the insistence of the EUCOM Commander. These demands from active theaters are embarrassing and compelling counterarguments to the Air Force’s plea that the Warthog is no longer relevant or capable and needs to be unloaded to help pay for the new, expensive, more high-tech planes that Air Force headquarters vastly prefers even though the planes are underperforming.
  • So far, Congress has not been any more sympathetic to this year’s continuation of General Welsh’s campaign to retire the A-10. Chairman McCain rejected the Air Force’s contention that the F-35 was ready enough to be a real replacement for the A-10 and vowed to reverse the A-10 retirement process already underway. Senator Ayotte led a letter to Defense Secretary Ashton Carter with Senators Tom Cotton (R-AR), Lindsey Graham (R-SC), Thom Tillis (R-NC), Roger Wicker (R-MS), Mike Crapo (R-ID), Johnny Isakson (R-GA), and Richard Burr (R-NC) rebuking Hagel’s decision to place 18 A-10s in backup inventory. Specifically, the Senators called the decision a “back-door” divestment approved by a “disappointing rubber stamp” that guts “the readiness of our nation’s best close air support aircraft.” In the House, Representative Martha McSally (R-AZ) wrote to Secretary Carter stating that she knew from her own experience as a former A-10 pilot and 354th Fighter Squadron commander that the A-10 is uniquely capable for combat search and rescue missions, in addition to CAS, and that the retirement of the A-10 through a classified assessment violated the intent of Congress’s compromise with the Air Force:
  • Some in the press have been similarly skeptical of the Air Force’s intentions, saying that the plan “doesn’t add up,” and more colorfully, calling it “total bullshit and both the American taxpayer and those who bravely fight our wars on the ground should be furious.” Those reports similarly cite the Air Force’s longstanding antagonism to the CAS mission as the chief motive for the A-10’s retirement.
  • By announcing that pilots who spoke to Congress about the A-10 were “committing treason,” ACC Vice Commander Major General James Post sparked an Inspector General investigation and calls for his resignation from POGO and other whistleblower and taxpayer groups. That public relations debacle made it clear that the Air Force needed a new campaign strategy to support its faltering A-10 divestment campaign. On the orders of Air Force Chief of Staff General Mark Welsh, General Herbert “Hawk” Carlisle—the head of Air Combat Command—promptly announced a joint CAS Summit, allegedly to determine the future of CAS. It was not the first CAS Summit to be held (the most recent previous Summit was held in 2009), but it was the first to receive so much fanfare. As advertised, the purpose of the Summit was to determine and then mitigate any upcoming risks and gaps in CAS mission capabilities. But notes, documents, and annotated briefing slides reviewed by CDI reveal that what the Air Force publicly released from the Summit is nothing more than a white-washed assessment of the true and substantial operational risks of retiring the A-10.
  • Just prior to the Summit, a working group of approximately 40 people, including CAS-experienced Air Force service members, met for three days at Davis-Monthan Air Force Base to identify potential risks and shortfalls in CAS capabilities. But Air Force headquarters gave them two highly restrictive ground rules: first, assume the A-10s are completely divested, with no partial divestments to be considered; and second, assume the F-35 is fully CAS capable by 2021 (an ambitious assumption at best). The working groups included A-10 pilots, F-16 pilots, and Joint Terminal Attack Controllers (JTACs), all with combat-based knowledge of the CAS platforms and their shortfalls and risks. They summarized their findings with slides stating that the divestment would “cause significant CAS capability and capacity gaps for 10 to 12 years,” create training shortfalls, increase costs per flying hour, and sideline over 200 CAS-experienced pilots due to lack of cockpits for them. Additionally, they found that after the retirement of the A-10 there would be “very limited” CAS capability at low altitudes and in poor weather, “very limited” armor killing capability, and “very limited” ability to operate in the GPS-denied environment that most experts expect when fighting technically competent enemies with jamming technology, an environment that deprives the non-A-10 platforms of their most important CAS-guided munition. They also concluded that even the best mitigation plans they were recommending would not be sufficient to overcome these problems and that significant life-threatening shortfalls would remain.
  • General Carlisle was briefed at Davis-Monthan on these incurable risks and gaps that A-10 divestment would cause. Workshop attendees noted that he understood gaps in capability created by retiring the A-10 could not be solved with the options currently in place. General Carlisle was also briefed on the results of the second task to develop a list of requirements and capabilities for a new A-X CAS aircraft that could succeed the A-10. “These requirements look a lot like the A-10, what are we doing here?” he asked. The slides describing the new A-X requirements disappeared from subsequent Pentagon Summit presentations and were never mentioned in any of the press releases describing the summit.
  • At the four-day Pentagon Summit the next week, the Commander of the 355th Fighter Wing, Davis-Monthan Air Force Base, Col. James P. Meger, briefed lower level joint representatives from the Army and the Marine Corps about the risks identified by the group at Davis-Monthan. Included in the briefing was the prediction that divestment of the A-10 would result in “significant capability and capacity gaps for the next ten to twelve years” that would require maintaining legacy aircraft until the F-35A was fully operational. After the presentation, an Army civilian representative became concerned. The slides, he told Col. Meger, suggested that the operational dangers of divestment of the A-10 were much greater than had been previously portrayed by the Air Force. Col. Meger attempted to reassure the civilian that the mitigation plan would eliminate the risks. Following the briefing, Col. Meger met with Lt. Gen. Tod D. Wolters, the Deputy Chief of Staff for Operations for Air Force Headquarters. Notably, the Summit Slide presentation for general officers the next day stripped away any mention of A-10 divestment creating significant capability gaps. Any mention of the need to maintain legacy aircraft, including the A-10, until the F-35A reached full operating capability (FOC) was also removed from the presentation.
  • The next day, Col. Meger delivered the new, sanitized presentation to the Air Force Chief of Staff. There was only muted mention of the risks presented by divestment. There was no mention of the 10- to 12-year estimated capability gap, nor was there any mention whatsoever of the need to maintain legacy aircraft—such as the A-10 or less capable alternatives like the F-16 or F-15E—until the F-35A reached FOC. Other important areas of concern to working group members, but impossible to adequately address within the three days at Davis-Monthan, were the additional costs to convert squadrons from the A-10 to another platform, inevitable training shortfalls that would be created, and how the deployment tempos of ongoing operations would further exacerbate near-term gaps in CAS capability. To our knowledge, none of these concerns surfaced during any part of the Pentagon summit.
  • Inevitably, the Air Force generals leading the ongoing CAS Summit media blitz will point congressional Armed Services and Appropriations committees to the whitewashed results of their sham summit. When they do, Senators and Representatives who care about the lives of American troops in combat need to ask the generals the following questions: Why wasn’t this summit held before the Air Force decided to get rid of A-10s? Why doesn’t the Air Force’s joint CAS summit include any statement of needs from soldiers or Marines who have actually required close air support in combat? What is the Air Force’s contingency plan for minimizing casualties among our troops in combat in the years after 2019, if the F-35 is several years late in achieving its full CAS capabilities? When and how does the Air Force propose to test whether the F-35 can deliver close support at least as combat-effective as the A-10’s present capability? How can that test take place without A-10s? Congress cannot and should not endorse Air Force leadership’s Summit by divesting the A-10s. Instead, the Senate and House Armed Services Committees need to hold hearings that consider the real and looming problems of inadequate close support, the very problems that Air Force headquarters prevented their Summit from addressing. These hearings need to include a close analysis of CAPE’s assessment and whether the decision to classify its report was necessary and appropriate. Most importantly, those hearings must include combat-experienced receivers and providers of close support who have seen the best and worst of that support, not witnesses cherry-picked by Air Force leadership—and the witnesses invited must be free to tell it the way they saw it.
  • If Congress is persuaded by the significant CAS capability risks and gaps originally identified by the Summit’s working groups, they should write and enforce legislation to constrain the Air Force from further eroding the nation’s close air support forces. Finally, if Congress believes that officers have purposely misled them about the true nature of these risks, or attempted to constrain service members’ communications with Congress about those risks, they should hold the officers accountable and remove them from positions of leadership. Congress owes nothing less to the troops they send to fight our wars.
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     Though not touched on in the article, the real problem is that the A10 has no proponents at the higher ranks of the Air Force because it is already bought and paid for; there's nothing in the A10 for the big Air Force aircraft manufacturing defense contractors. The F35, on the other hand is, is a defense contractor wet dream. It's all pie in the sky and big contracts just to get the first one in the air, let alone outfit it with the gear and programming needed to use it to inflict harm. It's been one cost-overrun after another and delay after delay. It's a national disgrace that has grown to become the most expensive military purchase in history. And it will never match the A10 for the close air support role. It's minimum airspeed is too high and its close-in maneuverability will be horrible. The generals, of course, don't want to poison the well for their post-military careers working for the defense contractors by putting a halt to the boondobble. Their answer: eliminate the close air support mission for at least 10-12 years and then attempt it with the F35.   As a former ground troop, that's grounds for the Air Force generals' court-martial and dishonorable discharge. I would not be alive today were it not for close air support. And there are tens of thousands of veterans who can say that in all truth. The A10 wasn't available back in my day, but by all reports its the best close air support weapons platform ever developed. It's a tank killer and is heavily armored, with redundant systems for pilot and aircraft survivability. The A10 is literally built around a 30 mm rotary cannon that fires at 3,900 rounds per minute. It also carries air to ground rockets and is the only close air support aircraft still in the U.S. arsenal. Fortunately, John McCain "get it" on the close air support mission and has managed to mostly protect the A10 from the generals. If you want to learn  more about the F35 scandal, try this Wikipedia article section; although it's enoug
Paul Merrell

Europe Is Spying on You - The New York Times - 0 views

  • When Edward Snowden disclosed details of America’s huge surveillance program two years ago, many in Europe thought that the response would be increased transparency and stronger oversight of security services. European countries, however, are moving in the opposite direction. Instead of more public scrutiny, we are getting more snooping. Pushed to respond to the atrocious attacks in Paris and Copenhagen and by the threats posed by the Islamic State to Europe’s internal security, several countries are amending their counterterrorism legislation to grant more intrusive powers to security services, especially in terms of mass electronic surveillance.
  • Governments now argue that to guarantee our security we have to sacrifice some rights. This is a specious argument. By shifting from targeted to mass surveillance, governments risk undermining democracy while pretending to protect it.They are also betraying a long political and judicial tradition affording broad protection to privacy in Europe, where democratic legal systems have evolved to protect individuals from arbitrary interference by the state in their private and family life. The European Court of Human Rights has long upheld the principle that surveillance interferes with the right to privacy. Although the court accepts that the use of confidential information is essential in combating terrorist threats, it has held that the collection, use and storage of such information should be authorized only under exceptional and precise conditions, and must be accompanied by adequate legal safeguards and independent supervision. The court has consistently applied this principle for decades when it was called to judge the conduct of several European countries, which were combating domestic terrorist groups.
  • More recently, as new technologies have offered more avenues to increase surveillance and data collection, the court has reiterated its position in a number of leading cases against several countries, including France, Romania, Russia and Britain, condemned for having infringed the right to private and family life that in the interpretation of the court covers also “the physical and psychological integrity of a person.”
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  • Last year, the European Court of Justice set limits on telecommunication data retention. By invalidating a European Union directive for its unnecessary “wide-ranging and particularly serious interference with the fundamental right to respect for private life” and personal data, this court reaffirmed the outstanding place privacy holds in Europe. This judgment echoed a 2006 German Constitutional Court ruling that the German police had breached the individual right to self-determination and human dignity after they conducted a computerized search of suspected terrorists. Regrettably, these judgments are often ignored by key decision-makers. Many of the surveillance policies that have recently been adopted in Europe fail to abide by these legal standards. Worse, many of the new intrusive measures would be applied without any prior judicial review establishing their legality, proportionality or necessity. This gives excessive power to governments and creates a clear risk of arbitrary application and abuse.
Paul Merrell

Turkey Goes to War - 0 views

  • More important, Erdogan intends to use his landslide victory to persuade the Military High Command that he has a popular mandate for his foreign policy, a policy that has amassed thousands of Turkish troops, armored vehicles and tanks on the Syrian border for a possible invasion. Up to now, the military has resisted Erdogan on this matter, but now that Chief of General Staff Gen. Necdet Özel, has been replaced as head of the Turkish Armed Forces (TSK) by the more compliant General Hulusi Akar, the plan to invade Syria and secure a so called “safety zone” along the Syrian side of the Turkish border, becomes much more probable. The plan to annex sovereign Syrian territory and use it to launch attacks on the government of Syrian President Bashar al Assad dates back to 2012.  In 2015, however, the strategy was expanded upon by Brookings analyst Michael E. O’Hanlon in a piece  titled “Deconstructing Syria: A new strategy for America’s most hopeless war”. Here’s an excerpt:
  • “…the only realistic path forward may be a plan that in effect deconstructs Syria….the international community should work to create pockets with more viable security and governance within Syria over time… The idea would be to help moderate elements establish reliable safe zones within Syria once they were able. American, as well as Saudi and Turkish and British and Jordanian and other Arab forces would act in support, not only from the air but eventually on the ground via special forces. … Western forces themselves would remain in more secure positions in general—within the safe zones but back from the front lines—at least until the reliability of such defenses, and also local allied forces, made it practical to deploy and live in more forward locations. Creation of these sanctuaries would produce autonomous zones that would never again have to face the prospect of rule by either Assad ….The interim goal might be a confederal Syria, with several highly autonomous zones… The confederation would likely require support from an international peacekeeping force….to make these zones defensible and governable,….and to train and equip more recruits so that the zones could be stabilized and then gradually expanded.”  (Deconstructing Syria: A new strategy for America’s most hopeless war, Michael E. O’Hanlon, Brookings Institute)
  • This is the Obama administration’s basic blueprint for toppling Assad and reducing Syria into an ungovernable failed state run by regional warlords, renegade militias and Islamic extremists. US Secretary of State John Kerry confirmed our worst suspicions about this sinister plan in a speech he delivered to the Carnegie Endowment for International Peace just last week.  Here’s part of what he said: “In northern Syria, the coalition and its partners have pushed Daesh (ISIS) out of more than 17,000 square kilometers of territory, and we have secured the Turkish-Syrian border east of the Euphrates River. That’s about 85 percent of the Turkish border, and the President is authorizing further activities to secure the rest……. We’re also enhancing our air campaign in order to help drive Daesh, which once dominated the Syria-Turkey border, out of the last 70-mile stretch that it controls.” (U.S. Secretary of State John Kerry on the Future of U.S. Policy in the Middle East, Carnegie Endowment for International Peace) Repeat: “That’s about 85 percent of the Turkish border, and the President is authorizing further activities to secure the rest.”
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  • Why has Obama “authorized further activities to secure the rest”? Because no one in Washington believes that the US-backed jihadis will beat the combined forces of the Russian-led coalition which is gradually annihilating the terrorist militias across Syria. So now, Obama is moving on to Plan B, the creation of a terrorist sanctuary on the Syrian side of the Syrian-Turkish border where the US and its partners can continue to arm, train and deploy their jihadi maniacs back into Syria whenever they choose to do so. Undoubtedly, Obama’s Special Forces will be used to oversee this operation and to make sure that everything goes according to plan. There is, of course, a question about the Kurdish militias role in this strategy. Recently, the US has air-dropped pallet-loads of weapons and ammo to the Democratic Union Party (PYD)  hoping the group could help the US secure the last stretch of land along the border west of the Euphrates thus keeping vital supplylines open for the jihadis while establishing a safe haven on Syrian territory. Erdogan violently opposes any operation that will create a contiguous Kurdish state on the Syrian side of the border. So how will this situation be resolved? Will Obama stick with the Kurds or realign with Erdogan in exchange for Turkish boots on the ground?
Paul Merrell

Saudi Arabia is at a Dangerous Crossroads | nsnbc international - 0 views

  • Ambivalence, political twists and turns and the adoption of mutually exclusive decisions on Syria clearly show how completely lost the Saudi leaders are and their distinct lack of understanding of the fundamentals of modern foreign policy. The leaders of the wealthiest countries in the world, the leaders of the Arab and Muslim world have fully displayed their political inadequacy, inability to manoeuvre and adapt to the realities of the modern world. The once infinite riches are melting away rapidly, and soon ordinary Saudis will be faced with the issue of cost-cutting in their simple everyday problems.
  • The current policy which is so inconsistent and lacks any elementary logic was not only unsuccessful, but plunges Saudi Arabia ever deeper into an abyss of hardship and misery, setting new, complex problems before the King. Primarily, this concerns the economic and financial problems that the once wealthy Saudi society has not yet encountered. As the director of the Middle East and Central Asia Department of the IMF, Masood Ahmed, said in an interview with The Wall Street Journal, the cumulative budget deficit of Middle Eastern oil-exporting countries in the next five years could reach $1 trillion. Moreover, the treasury of the regional leader, Saudi Arabia, is at risk of running dry, and the “kingdom of the welfare state” can expect bankruptcy. Up to now, financial holes – the budget deficit, which this year is projected to be 21.6 percent of GDP, has been covered by the earlier petrodollar savings. In particular, this summer the Saudi Arabian Monetary Agency was forced to withdraw $70 billion from foreign investment funds assets. It can be assumed that this is only the beginning of the return of capital to their homeland, to tide over the emerging new outgoings. Otherwise, a sharp reduction in expenditure could lead to a social explosion in the Kingdom, whose citizens have become used to living a well-off life during the oil boom.
  • Saudi Arabia is currently exploring the possibility of higher energy prices for consumers within the country, as reported by the Oil Minister Ali Al-Naimi. Responding to a question about whether the Kingdom is going to reduce energy subsidies in the near future, the Saudi official said: “Your question concerns whether we are considering such a possibility? Yes, we are considering it.” Energy prices in Saudi Arabia are among the lowest in the world. Saudi Arabia is in fact the leader of the Organization of Petroleum Exporting Countries (OPEC). Meanwhile, the Kingdom is losing out on potential revenue by selling oil on the domestic market at a much cheaper rate than on the foreign market. Currently, Saudi Arabia spends about 86 billion dollars a year in subsidies for oil producers.
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  • Not surprisingly, many members of the Saudi Royal Family are concerned about the situation which has come about after the new King Salman bin Abdulaziz Al Saud came to power. According to the Egyptian newspaper, the Egyptian Gazette, the changes that have occurred in the Kingdom’s foreign and domestic policy in less than 9 months of King Salman’s reign have cause a growing number of problems in both the Kingdom of Saudi Arabia and abroad. Dissatisfaction among the Saudis has risen to a new level. All of this is reflected in a letter that members of the Royal Family received from one of the younger princes. In the letter, which was widely reprinted in the world media, the anonymous monarch justifies the need for change and literally calls for a coup d’etat, which, according to the prince should by carried out by the 13 currently healthy sons of the founder of Saudi Arabia. “The King in not in a stable position and in reality the son of the King is ruling the Kingdom”, the prince wrote. He called for “the sons of Ibn Saud, from the eldest, Bandar, to the youngest, Muqrin” to urgently convene a meeting to examine the situation and see what should be done to save the Kingdom, to carry out a series of substitutions in high positions in the Kingdom of Saudi Arabia and to verify the decisions taken by members of the Saudi Arabian royal family, irrespective of which they generation belong to.
  • It is worth noting that the author of the letter refers to a range of reasons for which the current King Salman and his son should be removed from their posts, including their inability to lead or deal with the difficult economic situation in the country caused by the fall in oil prices, the unpopular war in Yemen, the foreign policy failures in Syria and the recent tragedy in Mecca that claimed more than 800 lives. Meanwhile the writer does not explain exactly whom he would like to see in the position of King and Crown Prince. Neither the Royal house, nor the 13 princes, to whom the letter is addressed, have since reacted. In any case, the current rulers are faced with a number of questions and problems, and the immediate future of Saudi Arabia will depend on how professionally and quickly they are able to solve them.
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