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Paul Merrell

Meet the Israeli-linked firm that sold Big Brother machines to Mubarak, Qaddafi - and Washington | Mondoweiss - 0 views

  • In 2006, an AT&T technician named Mark Klein discovered a secret room inside the company’s windowless “Folsom Street Facility” in downtown San Francisco that was bristling with Narus machines. The now notorious Room 641A was controlled by the NSA, which was using it to collect AT&T customer data for data mining and real-time analysis. Thanks to the powerful NarusInsight system, the NSA was able to monitor 108 billion emails from AT&T customers per day.
  • Following a lawsuit filed against AT&T by the Electronic Freedom Foundation, Congress passed the FISA Amendments Act in July 2008, giving retroactive immunity to telecom corporations that assisted the NSA, and relieving them of any consequences for spying on Americans. Cass Sunstein, an informal advisor to Barack Obama’s 2008 presidential campaign who now heads the Office of Information and Regulatory Affairs, and who has urged federal law enforcement to “cognitively infiltrate” anti-government groups, was an outspoken supporter of the retroactive immunity bill. With Sunstein by his side, Obama reversed his initial objections to the NSA’s domestic spying operations, voting as a Senator for retroactive immunity. The vote allowed the NSA to expand its domestic spying operations, clearing the legal hurdles obstructing the creation of PRISM. The stage was set for the second term scandal that would leave Obama reeling.
  • Binney told me that throughout the United States there are currently as many as 20 NSA black sites like Room 641A. Narus devices, he said, have been placed at fiber-optic convergence points, allowing the NSA to retrieve about 80 percent of data carried through telecom and online service providers. Binney emphasized that the devices do not only retrieve so-called metadata, which only offers general records of data, but that they gather the actual content of emails and calls. (“We can reconstruct all of their e-mails along with attachments, see what web pages they clicked on; we can reconstruct their (Voice Over Internet) calls,” said Steve Bannerman, the marketing director of Narus). Thanks to PRISM, the NSA bas been able to “fill in the gaps,” Binney explained, gathering bulk data from communications the NSA might have missed with the NarusInsight system, especially those made between Americans and foreign countries.
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  • Another Israeli-linked tech company, Verint, is a subsidiary of the Israeli firm Comverse, which boasts a reputation as “the world’s leading provider… of communications intercept and analysis” technology. Among the many Comverse executives plucked from the ranks of Israeli army intelligence is the company’s founder, Jacob “Kobi” Alexander, an ex-Israeli intelligence agent who cashed in through Israel’s high-tech surveillance industry. Alexander’s lucrative career collapsed in dramatic fashion when he was arrested for fraud in Namibia in 2006 after an international manhunt, and wound up handing over bank accounts worth $46 million to US authorities.
  • Just as AT&T relied on Narus systems, Verint’s DPI devices have been used to fulfill NSA requests for data from Verizon’s subscribers. And as Bamford explained in his 2008 book on the NSA, “Shadow Factory,” much of the data Verint and other private Israeli contractors gather from can be remotely accessed from Israel. “The greatest potential beneficiaries of this marriage between the Israeli eavesdroppers and America’s increasingly centralized telecom grid are Israel’s intelligence agencies,” Bamford wrote.
Paul Merrell

Afghan Opium Production 40 Times Higher Since US-NATO Invasion - 0 views

  • Since the U.S.-led NATO invasion of Afghanistan in 2001, the production of opium in the country has increased by 40 times according to Russia’s Federal Drug Control Service, fueling organized crime and widespread death. The head of the FSKN, Viktor Ivanov, explained the staggering trend at a March U.N. conference on drugs in Afghanistan. Opium growth in Afghanistan increased 18 percent from 131, 000 hectares to 154, 000, according to Ivanov’s estimates. “Afghan heroin has killed more than one million people worldwide since the ‘Operation Enduring Freedom’ began and over a trillion dollars has been invested into transnational organized crime from drug sales,” said Ivanov according to Counter Current News.   Prior to the invasion of Afghanistan, opium production was banned by the Taliban, although it still managed to exist. The U.S. and its allies have been accused of encouraging and aiding in the opium production and the ongoing drug trafficking within the region. Ivanov claimed that only around 1 percent of the total opium yield in Afghanistan was destroyed and that the “international community has failed to curb heroin production in Afghanistan since the start of NATO’s operation.”
  • Afghanistan is thought to produce more than 90 percent of the world’s supply of opium, which is then used to make heroin and other dangerous drugs that are shipped in large quantities all over the world. Opium production provides many Afghan communities with an income, in an otherwise impoverished and war-torn country. The opium trade contributed around $US 2.3 billion or around 19 percent of Afghanistan’s GDP in 2009 according to the U.N.
  • The Islamic State Group is reported to have recently taken over opium production and trafficking. In November, the extremist group was estimated to be earning over $US 1 billion from the opium trade. Profits also go to international drug cartels and money-laundering banks.
  •  
    Since early in the Viet Nam War, the U.S. Central Intelligence Agency has dominated the production and smuggling of opium. After the Viet Nam War, that operation was largely transferred from Southeast Asia's "Golden Triangle" to Afghanistan, with primary shipment initially through Pakistan. That production center was threatened when the Taliban came to power in Afghanistan in 1996, as the Taliban began shutting down the growing of opium poppies in that nation. So it was no surprise that Afghan production of opium skyrocketed after the U.S. invaded Afghanistan. Indeed, there are reasonable grounds for suspecting that al-Qaeda was blamed for the 9-11 attack precisely to justify invasion of Afghanistan to block the Taliban's interference with the CIA's production of opium. Opium, like cocaine production in South America, provides enormous amounts of off-the-books financing for CIA covert activities. For such reasons, there are strong reasons to suspect that ISIL would not be taking over opium production in Afghanistan without the CIA's acquiescence and participation. (For example, ISIL would need to use the CIA's shipment and marketing capabilities in Pakistan to bring their product to market. So I regard ISIL's rise in opium production as further evidence that the CIA and ISIL are joined at the hip, that ISIL is a CIA operation.
Paul Merrell

Israeli firm that imprisons Gaza aims to build Trump's wall with Mexico | The Electronic Intifada - 0 views

  • A firm that has helped isolate Gaza from the outside world is hoping for a windfall building President Donald Trump’s wall on the US-Mexico border. Ironically, the firm already does a lot of business with Mexico’s own government. Shares of Israel’s Magal Security Systems, which also helped build Israel’s illegal barrier in the occupied West Bank, surged following Trump’s election victory last November. During the campaign, Magal touted its experience caging Palestinians as the ideal credentials to build the wall that Trump repeatedly promised during his campaign and which has united Mexicans in opposition. In recent decades, increasing US militarization of its southern border has torn apart communities on both sides, including indigenous communities that long predate the existence of the United States. Gaza “has become a key sales prop for Magal’s ‘smart fences,’” the financial news agency Bloomberg reported in August.
  •  
    Of course.
Paul Merrell

NSA Spied on Chinese Government and Networking Firm Huawei - SPIEGEL ONLINE - 0 views

  • According to documents viewed by SPIEGEL, America'a NSA intelligence agency put considerable efforts into spying on Chinese politicians and firms. One major target was Huawei, a company that is fast becoming a major Internet player.
  • The American government conducted a major intelligence offensive against China, with targets including the Chinese government and networking company Huawei, according to documents from former NSA worker Edward Snowden that have been viewed by SPIEGEL. Among the American intelligence service's targets were former Chinese President Hu Jintao, the Chinese Trade Ministry, banks, as well as telecommunications companies. But the NSA made a special effort to target Huawei. With 150,000 employees and €28 billion ($38.6 billion) in annual revenues, the company is the world's second largest network equipment supplier. At the beginning of 2009, the NSA began an extensive operation, referred to internally as "Shotgiant," against the company, which is considered a major competitor to US-based Cisco. The company produces smartphones and tablets, but also mobile phone infrastructure, WLAN routers and fiber optic cable -- the kind of technology that is decisive in the NSA's battle for data supremacy. A special unit with the US intelligence agency succeeded in infiltrating Huwaei's network and copied a list of 1,400 customers as well as internal documents providing training to engineers on the use of Huwaei products, among other things.
  • According to a top secret NSA presentation, NSA workers not only succeeded in accessing the email archive, but also the secret source code of individual Huwaei products. Software source code is the holy grail of computer companies. Because Huawei directed all mail traffic from its employees through a central office in Shenzhen, where the NSA had infiltrated the network, the Americans were able to read a large share of the email sent by company workers beginning in January 2009, including messages from company CEO Ren Zhengfei and Chairwoman Sun Yafang. "We currently have good access and so much data that we don't know what to do with it," states one internal document. As justification for targeting the company, an NSA document claims that "many of our targets communicate over Huawei produced products, we want to make sure that we know how to exploit these products." The agency also states concern that "Huawei's widespread infrastructure will provide the PRC (People's Republic of China) with SIGINT capabilities." SIGINT is agency jargon for signals intelligence. The documents do not state whether the agency found information indicating that to be the case.
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  • The operation was conducted with the involvement of the White House intelligence coordinator and the FBI. One document states that the threat posed by Huawei is "unique". The agency also stated in a document that "the intelligence community structures are not suited for handling issues that combine economic, counterintelligence, military influence and telecommunications infrastructure from one entity."
  • Editor's note: A longer version of this story will appear in German in the issue of SPIEGEL to be published on Monday.
Paul Merrell

NSA Whistleblower: Snowden Never Had Access to the "Juiciest" Intelligence Documents | Global Research - 0 views

  • NSA whistleblower Russel Tice was a key source in the 2005 New York Times report that blew the lid off the Bush administration’s use of warrantless wiretapping. Tice told PBS and other media that the NSA is spying on – and blackmailing – top government officials and military officers, including Supreme Court Justices, highly-ranked generals, Colin Powell and other State Department personnel, and many other top officials:
  • He says the NSA started spying on President Obama when he was a candidate for Senate:
  • Many of Tice’s allegations have been confirmed by other government whistleblowers. And see this. Washington’s Blog called Tice to find out more about what he saw when he was at NSA.
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  • NSA Has Hidden Its Most Radical Surveillance Operations … Even from People Like Snowden Who Had General “Code Word” Clearance WASHINGTON’S BLOG: Glenn Greenwald – supposedly, in the next couple of days or weeks – is going to disclose, based on NSA documents leaked by Snowden, that the NSA is spying on all sorts of normal Americans … and that the spying is really to crush dissent.  [Background here, here and here.] Does Snowden even have documents which contain the information which you’ve seen? RUSSELL TICE:  The answer is no. WASHINGTON’S BLOG: So you saw handwritten notes. And what Snowden was seeing were electronic files …?
  • RUSSELL TICE: Think of it this way.  Remember I told you about the NSA doing everything they could to make sure that the information from 40 years ago – from spying on Frank Church and Lord knows how many other Congressman that they were spying on – was hidden? Now do you think they’re going to put that information into Powerpoint slides that are easy to explain to everybody what they’re doing? They would not even put their own NSA designators on the reports [so that no one would know that] it came from the NSA.  They made the reports look like they were Humint (human intelligence) reports.  They did it to hide the fact that they were NSA and they were doing the collection. That’s 40 years ago.  [The NSA and other agencies are still doing "parallel construction", "laundering" information to hide the fact that the information is actually from mass NSA surveillance.] Now, what NSA is doing right now is that they’re taking the information and they’re putting it in a much higher security level.  It’s called “ECI” - Exceptionally Controlled Information  – and it’s called the black program … which I was a specialist in, by the way. I specialized in black world – DOD and IC (Intelligence Community) – programs, operations and missions … in “VRKs”, “ECIs”, and “SAPs”, “STOs”. SAP equals Special Access Program. It’s highly unlikely Mr. Snowden had any access to these. STO equals Special Technical Operations  It’s highly unlikely Mr. Snowden had any access to these.
  • Now in that world – the ECI/VRK world – everything in that system is classified at a higher level and it has its own computer systems that house it.  It’s totally separate than the system which Mr. Snowden was privy to, which was called the “JWICS”: Joint Worldwide Intelligence Communications System.  The JWICS system is what everybody at NSA has access to.  Mr Snowden had Sys Admin [systems administrator] authority for the JWICS. And you still have to have TS/SCI clearance [i.e. Top Secret/ Sensitive Compartmented Information - also known as “code word” - clearance] to get on the JWICS. But the ECI/VRK systems are much higher [levels of special compartmentalized clearance] than the JWICS. And you have to be in the black world to get that [clearance]. ECI = Exceptionally Controlled Information. I do not believe Mr. Snowden had any access to these ECI controlled networks). VRK = Very Restricted Knowledge. I do not believe Mr. Snowden had any access to these VRK controlled networks. These programs typically have, at the least, a requirement of 100 year or until death, ’till the person first being “read in” [i.e. sworn to secrecy as part of access to the higher classification program] can talk about them.  [As an interesting sidenote, the Washington Times reported in 2006 that – when Tice offered to testify to Congress about this illegal spying – he was informed by the NSA that the Senate and House intelligence committees were not cleared to hear such information.]
  • It’s very compartmentalized and – even with stuff that they had – you might have something at NSA, that there’s literally 40 people at NSA that know that it’s going on in the entire agency. When the stuff came out in the New York Times [the first big spying story, which broke in 2005] – and I was a source of information for the New York Times –   that’s when President Bush made up that nonsense about the “terrorist surveillance program.” By the way, that never existed. That was made up. There was no such thing beforehand. It was made up … to try to placate the American people. The NSA IG (Inspector General) – who was not cleared for this – all of a sudden is told he has to do an investigation on this; something he has no information or knowledge of. So what they did, is they took a few documents and they downgraded [he classification level of the documents] – just a few – and gave them to them to placate this basic whitewash investigation.
  • Snowden’s Failure To Understand the Most Important Documents RUSSELL TICE: Now, if Mr. Snowden were to find the crossover, it would be those documents that were downgraded to the NSA’s IG. The stuff that I saw looked like a bunch of alphanumeric gobbledygook.  Unless you have an analyst to know what to look for – and believe me, I think that what Snowden’s done is great – he’s not an intelligence analyst.  So he would see something like that, and he wouldn’t know what he’s looking at. But that would be “the jewels”. And the key is, you wouldn’t know it’s the jewels unless you were a diamond miner and you knew what to look for. Because otherwise, there’s a big lump of rock and you don’t know there’s a diamond in there. I worked special programs. And the way I found out is that I was working on a special operation, and I needed information from NSA … from another unit. And when I went to that unit and I said “I need this information”, and I dealt with [satellite spy operations], and I did that in the black world. I was a special operations officer. I would literally go do special missions that were in the black world where I would travel overseas and do spooky stuff.
  • Cheney Was Running the Show WASHINGTON’S BLOG: You said in one of your interviews that Dick Cheney ordered the intercepts that you found in the burn bags [the bags of documents which were slated to be destroyed because they were so sensitive]. Is that right … and if so, how do you know that? RUSSELL TICE: I did not know one way or the other until I talked to a very senior person at NSA who – much later – wanted to have a meeting with me. And we had a covert, clandestine style meeting. And that’s when this individual told me that the whole thing was being directed and was coming from the vice president’s office … Cheney, through his lawyer David Addington. WASHINGTON’S BLOG:  It sounds like it wasn’t going through normal routes?  It’s not like Cheney or Addington made formal requests to the NSA … through normal means? RUSSELL TICE: No, not normal at all. All on the sly … all “sneaky pete” under the table, in the evening when most NSA employees are gone for the day. This is all being done in the evenings … between like 7 [at night] and midnight.
  • NSA Is Spying On CONTENT as Well as Metadata WASHINGTON’S BLOG: And from what you and others have said, it’s content as well as metadata? RUSSELL TICE: Of course it is. Of course. [Background. But see this.] NSA Spying On Journalists, Congress, Admirals, Lawyers … RUSSELL TICE: In 2009, I told [reporters] that they were going after journalists and news organizations and reporters and such. I never read text of Congressman’s conversations. What I had was information – sometimes hand-written – of phone numbers of Congressmen, their wives, their children, their staffers, their home numbers, their cellphone numbers, their phone numbers of their residence back in Oregon or whatever state they’re from, and their little offices back in their state. Or an Admiral and his wife, and his kids and his staffers …
  • The main thing I saw more than anything else were lawyers and law firms. I saw more lawyers or law firms being wiretapped than anything else. These are the phone numbers I saw written. And then I would see those numbers incorporated into those lists with the columns of information about the phone number, and the serial number and the banks of recorders and digital converters and the data storage devices. I could see handwritten phone numbers and notes, sometimes with names, sometimes not.
  •  
    Whistleblower Russell Tice says that there are super-classified domestic surveillance records that Edward Snowden, Congressional oversight committees, and the NSA Inspector-General did not have access to. Must-read.
Joseph Skues

Noam Chomsky: The Real Reasons the U.S. Enables Israeli Crimes and Atrocities | World | AlterNet - 0 views

  • But the major change in relationships took place in 1967. Just take a look at USA aid to Israel. You can tell that right off. And in many other respects, it’s true, too. Similarly, the attitude towards Israel on the part of the intellectual community -- you know, media, commentary, journals, and so on -- that changed very sharply in 1967, from either lack of interest or sometimes even disdain, to almost passionate support. So what happened in 1967?
  • And Nasserite secular nationalism was considered a serious threat, because it was recognized that it might seek to take control of the immense resources of the region and use them for regional interest, rather than allow them to be centrally controlled and exploited by the United States and its allies. So that was a major issue.
  • While the U.S. was mired in Southeast Asia at the time -- it was right at the time, a little after the Cambodia invasion and everything was blowing up -- the U.S. couldn't do a thing about it. So, it asked Israel to mobilize its very substantial military forces and threaten Syria so that Syria would withdraw. Well, Israel did it. Syria withdrew. That was another gift to U.S. power and, in fact, U.S. aid to Israel shot up very sharply -- maybe quadrupled or something like that -- right at that time. Now at that time, that was the time when the so-called Nixon Doctrine was formulated.
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  • which will protect the Arab dictatorships from their own populations or any external threat.
  • what were called “cops on the beat” by Melvin Laird, Secretary of Defense
  • A part of the Nixon Doctrine was that the U.S., of course, has to control Middle-East oil resources -- that goes much farther back -- but it will do so through local, regional allies
  • a whole network
  • Pakistan
  • Israel
  • that was sometimes called the periphery strategy: non-Arab states protecting the Arab dictatorships from any threat,
  • primarily the threat of what was called radical nationalism -- independent nationalism -- meaning taking over the armed resources for their own purposes.
  • But, anyway, that “cop” [Iran] was lost and Israel's position became even stronger in the structure that remained.
  • through the '80s Congress, under public pressure, was imposing constraints on Reagan's support for vicious and brutal dictatorship
  • Congress blocked i
  • which the Reagan administration was strongly supporting
  • So] that it [could] support South-African apartheid and the Guatemalan murderous dictatorship and other murderous regimes, Reagan needed a kind of network of terrorist states to help out, to evade the congressional and other limitations, and he turned to, at that time, Taiwan, but, in particular, Israel. Britain helped out. And that was another major service.
  • By far the most rabid pro-Israel newspaper in the country is the Wall Street Journal
  • the journal of the business community, and it reflects the support of the business world for Israel, which is quite strong
  • high-tech investment in Israe
  • military industry is very close to Israeli
  • probably it's carried out terrorist acts, but by the standards of the U.S. and Israel, they're barely visible
  • Intel, for example, is building its next facility for construct development of the next generation of chips in Israel.
  • Most Jewish money goes to Democrats and most Jews vote Democratic
  • Turkey
  • AIPAC, which is a very influential lobby
  • there's Christian Zionism
  • they're facing virtually no opposition. Who's calling for support of the Palestinians?  
  • the occupation and the blockade on Gaz
  • , the occupation of East Jerusalem
  • the West Bank
  • here were free elections in Palestine in January 2006
  • recognized to be free
  • Israel and the United States instantly, within days, undertook perfectly public policies to try to punish the Palestinians for voting the wrong way in a free election
  • you couldn't see a more dramatic illustration of hatred and contempt for democracy unless it comes out the right way.    
  • tried to carry out a military coup to overthrow the elected government. Well, it failed. Hamas won and drove Fatah out of the Gaza Strip. Now, here, that's described as a demonstration of Hamas terror or something. What they did was preempt and block a U.S.-backed military coup
  • The terrorist list has been a historic joke, in fact, a sick joke
  • Up until 1982, Iraq -- Saddam Hussein's Iraq -- was on the terrorist list. 
  • 1982, the Reagan administration removed Iraq from the terrorist list. Why? Because they were moving to support Iraq, and, in fact, the Reagan administration and, in fact, the first Bush administration strongly supported Iraq right through its worst – Saddam, right through his worst atrocities. In fact, they tried to ... they succeeded, in fact, in preventing even criticism of condemnation of the worst atrocities, like the Halabja massacre -- and others
  • So they removed Iraq from the terrorist list because they wanted to support one of the worst monsters and terrorists in the region, namely Saddam Hussein.
  • Republican Party is much more strongly supportive of Israeli power and atrocities than the Democrats are
  • The main reason why Hezbollah is on the terrorist list is because it resisted Israeli occupation of Southern Lebanon and, in fact, drove Israel out of Southern Lebanon after 22 years of occupation -- that's called terrorism. In fact, Lebanon has a national holiday, May 25th, which is called Liberation Day. That's the national holiday in Lebanon commemorating, celebrating the Israeli withdrawal from southern Lebanon in year 2000, and largely under Hezbollah attack.  
  • which would be a major competitor in Egypt's elections, if Egypt permitted democratic elections,
  • The Egyptian dictatorship -- which the U.S. strongly backs, Obama personally strongly backs -- doesn't permit anything remotely like elections and is very brutal and harsh
  • I mean, Europe, the non-aligned countries -- the Arab League, the Organization of Islamic States, which includes Iran -- have all accepted the international consensus on the two-state settlement
  • They chose expansion.  The crucial question is what would the United States do? Well, there was an internal bureaucratic battle in the U.S., and Henry Kissinger won out. He was in favor of what he called “stalemate.” A stalemate meant no negotiations, just force.
  • So, sure, if Israel continues to settle in the occupied territories -- illegally, incidentally, as Israel recognized in 1967 (it's all illegal; they recognized it) -- it's undermining the possibilities for the viable existence of any small Palestinian entity. And as long as the United States and Israel continue with that, yes, there will be insecurity
Gary Edwards

Bruce Krasting: The Fed bombed the market - I ask, "Why?" - 1 views

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    This is an interesting post.  The WSJ published an article yesterday claiming that the Federal Reserve Bankster Cartel was looking at European Banksters and assessing the quality of "funding positions" and asset status for their USA branch operations.  The Fed Banksters are also consulting with EU regulators about European Bankster concerns. The WSJ article (http://on.wsj.com/nugr7s) triggered a massive market crash on Thursday.  Over $2 Trillion was washed away in the panic following the publication of this WSJ story.  That's on top of the $6 Trillion lost following the Obama Debt-Man-Walking deal with Congress. But here's where it gets interesting.  Bruce Krasting contacted Zero Hedge's Tyler Durden and got this reply; "the story is a Fed plant". Tyler Durden believes that the Feds want to create a world economic crisis to justify a massive QE3 where tens of trillions of dollars would be created and distributed to the worlds Banksters.  This follows the $16.1 Trillion created and distributed to the world's Banksters in 2009 - 2010 under QE1 and QE2. Incredible.  Just a few days ago Republican presidential candidate Gov Rick Perry warned the Fed Banksters not to flood the market with a new QE3.  No doubt what Perry has in mind is that the Fed will flood the world's economy with dollars, debasing the currency even further, but providing a phony and very temporary veil of prosperity - just enough to get Obama into a second term.   Not a bad concept for the Banksters since Obam has proven himself time and again as the bes tfriend the Banksters have ever had.  Obama has overseen the transfer of over $23 Trillion of USA taxpayer debt to the world Bankster community.
Gary Edwards

AEI - The Error at the Heart of the Dodd-Frank Act - 0 views

  • The underlying assumption of the Dodd-Frank Act (DFA) is that the 2008 financial crisis was caused by the disorderly bankruptcy of Lehman Brothers.
  • This is evident in the statements of officials and the principal elements of the act, which would tighten the regulation of large financial institutions to prevent their failing, and establish an "orderly resolution" system outside of bankruptcy if they do.
  • The financial crisis, however, was caused by the mortgage meltdown, a sudden and sharp decline in housing and mortgage values as a massive housing bubble collapsed in 2007. This scenario is known to scholars as a "common shock"—a sudden decline in the
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  • 27 million loans—were subprime or otherwise weak and risky loans.
  • The reason for this was the US government's housing policy, which—in the early 1990s—began to require that government agencies and others regulated or controlled by government reduce their mortgage underwriting standards so borrowers who had not previously had access to mortgage credit would be able to buy homes. The government-sponsored enterprises Fannie Mae and Freddie Mac, the Federal Housing Administration, and banks and savings and loan associations (S&Ls) subject to the Community Reinvestment Act were all required to increase their acquisition of loans to homebuyers at or below the median income in their communities. Often, government policies required Fannie, Freddie, and the others to acquire loans to borrowers at or below 80 percent, and in some cases 60 percent, of median income.
  • Sometimes it is argued that the Troubled Asset Relief Program (TARP) prevented more failures. That seems highly unlikely. The first funds were made available under TARP on October 28, 2008, about six weeks after the panic following Lehman's failure. By that time, any firm that had been mortally wounded by Lehman's collapse would have collapsed itself. Moreover, most of the TARP funds were quickly repaid by the largest institutions, and many of the smaller ones, only eight months later, in mid-June 2009. This is strong ¬evidence that the funds were not needed to cover losses coming from the Lehman bankruptcy. If there were such losses, they would still have been embedded in the balance sheets of those institutions. If the funds were needed at all—and many of the institutions took them reluctantly and under government pressure—it was to restore investor confidence that the recipients were not so badly affected by the common shock of the decline in housing and mortgage values that they could not fund orderly withdrawals, if necessary. However, even if we assume that TARP funds prevented the failure of some large financial institutions, it seems clear that the underlying cause of each firm's weakness was the decline in the value of its MBS holdings, and not any losses suffered as a result of Lehman's bankruptcy.
  • This analysis leads to the following conclusion. Without a common shock, the failure of a single Lehman-like firm is highly unlikely to cause a financial crisis. This conclusion is buttressed by the fact that in 1990 the securities firm Drexel Burnham Lambert—then, like Lehman, the fourth largest securities firm in the United States—was allowed to declare bankruptcy without any adverse consequences for the market in general. At the time, other financial institutions were generally healthy, and Drexel was not brought down by the failure of a widely held class of assets. On the other hand, in the presence of a common shock, the orderly resolution of one or a few Lehman-like financial institutions will not prevent a financial crisis precipitated by a severe common shock.
  • In effect, by giving the government the power to resolve any financial firm it believes to be failing, the act has added a whole new policy objective for the resolution of failing firms. Before Dodd-Frank, insolvency law embodied two basic policies—retain the going concern value of the firm and provide a mechanism by which creditors could realize on the assets of an insolvent firm that cannot be saved.
  • DFA will have important adverse effects on ¬insolvency law.
  •  
    The underlying assumption of the Dodd-Frank Act (DFA) is that the 2008 financial crisis was caused by the disorderly bankruptcy of Lehman Brothers. This is evident in the statements of officials and the principal elements of the act, which would tighten the regulation of large financial institutions to prevent their failing, and establish an "orderly resolution" system outside of bankruptcy if they do. The financial crisis, however, was caused by the mortgage meltdown, a sudden and sharp decline in housing and mortgage values as a massive housing bubble collapsed in 2007. This scenario is known to scholars as a "common shock"-a sudden decline in the value of a widely held asset-which causes instability or insolvency among many financial institutions. In this light, the principal elements of Dodd-Frank turn out to be useless as a defense against a future crisis. Lehman's bankruptcy shows that in the absence of a common shock that weakens all or most financial institutions, the bankruptcy of one or a few firms would not cause a crisis; on the other hand, given a similarly severe common shock in the future, subjecting a few financial institutions to the act's orderly resolution process will not prevent a crisis. Apart from its likely ineffectiveness, moreover, the orderly resolution process in the act impairs the current insolvency system and will raise the cost of credit for all financial institutions. 
Paul Merrell

United Nations News Centre - 'Status quo not viable option' in Jerusalem, UN political chief tells Security Council - 0 views

  • Ongoing tensions in East Jerusalem and the West Bank cannot be separated from the larger reality that remains unresolved in the Israeli-Palestinian conflict, a senior United Nations official told the Security Council today. Briefing the Security Council on the situation in Jerusalem, Jeffrey Feltman, UN Under-Secretary-General for Political Affairs, acknowledged that recent heightened tensions over unilateral actions, provocations and access restrictions at holy sites in Jerusalem are contributing to a volatile situation, and stressed that further delay in negotiations and the pursuit of peace would only serve to deepen divisions and further exacerbate the conflict. “The status quo is not a viable option,” Mr. Feltman said. “Ignoring the calls from the international community for such negotiations for whatever excuse will only breed more violence in the region that has already seen too much of it.”
  • In his briefing, Mr. Feltman also said that Secretary-General Ban Ki-moon was “alarmed” by new reports about the advancement of planning for some 1,000 Israeli settlement units in occupied East Jerusalem, including about 400 units in Har Homa and 600 in Ramat Shlomo. This development follows Israel’s decision at the end of September to accelerate the progress of constructing some 2,600 residential units in Givat Hamatos, also in East Jerusalem. “The reality is that continued settlement activity in occupied Palestinian territory is doing significant damage to any possibility of a lasting peace between the two sides and is moving the situation ever closer to a one-state reality,” the Under-Secretary-General said. Reiterating the Secretary-General’s call for respect for the religious freedom of all, Mr. Feltman said the Secretary-General would be “closely following” developments in sacred places that have significance to millions of people around the world.
  • Noting that some members of the Council had again started discussing the possibility of adopting a new resolution on the Israeli-Palestinian conflict, Mr. Feltman said the Council “might wish to consider if the current paradigm, almost 50 years into the conflict, does not require revisiting our engagement thus far, so as to salvage the decisions of the Security Council and the relentless efforts of the international community, and to ensure that words are translated into actions.
Paul Merrell

Did NSA, GCHQ steal the secret key in YOUR phone SIM? It's LIKELY * The Register - 0 views

  • The NSA and Britain's GCHQ hacked the world's biggest SIM card maker to harvest the encryption keys needed to silently and effortlessly eavesdrop on potentially millions of people. That's according to documents obtained by surveillance whistleblower Edward Snowden and leaked to the web on Thursday. "Wow. This is huge – it's one of the most significant findings of the Snowden files so far," computer security guru Bruce Schneier told The Register this afternoon. "We always knew that they would occasionally steal SIM keys. But all of them? The odds that they just attacked this one firm are extraordinarily low and we know the NSA does like to steal keys where it can." The damning slides, published by Snowden's chums at The Intercept, detail the activities of the as-yet unheard-of Mobile Handset Exploitation Team (MHET), run by the US and UK. The group targeted Gemalto, which churns out about two billion SIM cards each year for use around the world, and targeted it in an operation dubbed DAPINO GAMMA.
  • Gemalto's hacking may also bring into question some of its other security products as well. The company supplies chips for electronic passports issued by the US, Singapore, India, and many European states, and is also involved in the NFC and mobile banking sector. It's important to note that this is useful for tracking the phone activity of a target, but the mobile user can still use encryption on the handset itself to ensure that some communications remain private. "Ironically one of your best defenses against a hijacked SIM is to use software encryption," Jon Callas, CTO of encrypted chat biz Silent Circle told The Register. "In our case there's a TCP/IP cloud between Alice and Bob and that can deal with compromised routers along the path as well as SIM issues, and the same applies to similar mobile software."
  • On Wednesday the UK government admitted that its intelligence agencies had in fact broken the ECHR when spying on communications between lawyers and those suing the British state, so GCHQ might want to reconsider that statement.
Paul Merrell

Investigating Donald Trump, F.B.I. Sees No Clear Link to Russia - The New York Times - 0 views

  • For much of the summer, the F.B.I. pursued a widening investigation into a Russian role in the American presidential campaign. Agents scrutinized advisers close to Donald J. Trump, looked for financial connections with Russian financial figures, searched for those involved in hacking the computers of Democrats, and even chased a lead — which they ultimately came to doubt — about a possible secret channel of email communication from the Trump Organization to a Russian bank.Law enforcement officials say that none of the investigations so far have found any conclusive or direct link between Mr. Trump and the Russian government. And even the hacking into Democratic emails, F.B.I. and intelligence officials now believe, was aimed at disrupting the presidential election rather than electing Mr. Trump.Hillary Clinton’s supporters, angry over what they regard as a lack of scrutiny of Mr. Trump by law enforcement officials, pushed for these investigations. In recent days they have also demanded that James B. Comey, the director of the F.B.I., discuss them publicly, as he did last week when he announced that a new batch of emails possibly connected to Mrs. Clinton had been discovered.
  • Supporters of Mrs. Clinton have argued that Mr. Trump’s evident affinity for Russia’s president, Vladimir V. Putin — Mr. Trump has called him a great leader and echoed his policies toward NATO, Ukraine and the war in Syria — and the hacks of leading Democrats like John D. Podesta, the chairman of the Clinton campaign, are clear indications that Russia has taken sides in the presidential race and that voters should know what the F.B.I. has found. Continue reading the main story Related Coverage 3 U.S. States Turn Down Russian Requests to Monitor Elections OCT. 21, 2016 Donald Trump Says He Might Meet With Putin Before Inauguration OCT. 17, 2016 Advertisement Continue reading the main story The F.B.I.’s inquiries into Russia’s possible role continue, as does the investigation into the emails involving Mrs. Clinton’s top aide, Huma Abedin, on a computer she shared with her estranged husband, Anthony D. Weiner. Mrs. Clinton’s supporters argue that voters have as much right to know what the F.B.I. has found in Mr. Trump’s case, even if the findings are not yet conclusive.
  • Senator Harry Reid of Nevada, the minority leader, responded angrily on Sunday with a letter accusing the F.B.I. of not being forthcoming about Mr. Trump’s alleged ties with Moscow.“It has become clear that you possess explosive information about close ties and coordination between Donald Trump, his top advisers, and the Russian government — a foreign interest openly hostile to the United States, which Trump praises at every opportunity,” Mr. Reid wrote. “The public has a right to know this information.”F.B.I. officials declined to comment on Monday. Intelligence officials have said in interviews over the last six weeks that apparent connections between some of Mr. Trump’s aides and Moscow originally compelled them to open a broad investigation into possible links between the Russian government and the Republican presidential candidate. Still, they have said that Mr. Trump himself has not become a target. And no evidence has emerged that would link him or anyone else in his business or political circle directly to Russia’s election operations.
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    The same story is running on CNN. There is another story moving on MSM that the FBI has found no evidence of Russian attempts to sway the election between the two candidates, instead being aimed at spreading chaos. Combined with FBI Director Comey's announcement last week that the Hillary email criminal investigation has been reopened, at least three temtative conclusions are suggested: [i] Comey and the FBI have mounted a three-pronged attack on Hillary's election run, on the email front, deFUDding Hillary's claim that Trump has ties with Vladimir Putin, and defanging the Hillary claim that Russia is attempting to elect Donald Trump; [ii] MSM is covering those stories; and [iii[ by implication, those who have real power over the U.S. government have decided they don't want Hillary do win the election. All good news for Trump and bad news for the Clintons.
Paul Merrell

Israeli ex-officers issue peace plan, condemn government inaction - The Boston Globe - 0 views

  • JERUSALEM — A group of more than 200 retired Israeli military and intelligence officers criticized the government for a lack of action in resolving the Israeli-Palestinian conflict on Friday and issued a detailed plan they say can end the impasse.The report’s publication closely follows a week of turmoil in Israeli politics that saw the appointment of a defense minister who is an outspoken skeptic of peace efforts with the Palestinians. Advertisement With peace talks in a deep freeze, the plan by Commanders for Israel’s Security on Friday called to ‘‘preserve conditions’’ for negotiations with the Palestinians. It urges a combination of political and security initiatives together with delivering economic benefits to Palestinians in Gaza, the West Bank, and East Jerusalem simultaneously.It calls for a freeze on settlement building, the acceptance in principle of the Arab Peace Initiative and the recognition that East Jerusalem should be part of a future Palestinian state ‘‘when established as part of a future agreement.’’ The Israeli opposition and much of the international community have long argued for these proposals.Commanders for Israel’s Security is a group comprising more than 200 retired generals and intelligence officers, veterans of decades of regional strife who are seeking to resolve the conflict. War veterans are well-respected in Israel, and their input has previously shifted debate.
  • The group’s chairman, Amnon Reshef, a fabled Israeli war hero and a former commander of its armored corps, said the plan ‘‘refutes the fear mongers’’ who claim there is currently no Palestinian peace partner or that conditions are not right for negotiations. He said such an argument, which is common in Israel after years of conflict and failed talks, ‘‘should not serve as an excuse for passivity and inaction.’’ Advertisement Reshef warned ‘‘the current status quo is an illusion’’ that endangers a two-state solution to the conflict.The report widens a growing rift between the government and the country’s military leaders. The former defense minister Moshe Yaalon was forced out after backing the military in a series of disagreements with political hard-liners. His ultranationalist successor, Avigdor Lieberman, is largely at odds with the military he now commands.
  • Reshef said his group’s plan aims to preserve conditions for future peace talks with the Palestinians while bettering Israel’s national security, regional and international ties in the interim. ‘‘In our experience we know that you cannot defeat terror only by military means, you have to improve the Palestinians quality of life,’’ he said.The group of military veterans said it hopes the plan will be considered by decision-makers and by the general public in Israel as well as in the United States.
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    We're years past the point where a two-state solution was possible, if it ever was. 
Paul Merrell

Israel accused of being 'apartheid state' by US black rights group | Middle East Eye - 0 views

  • The US-based Black Lives Matter movement has called Israel an "apartheid state" and said it is joining the Boycott, Divestment and Sanctions (BDS) campaign over acts of "genocide against the Palestinian people".The Platform of the Movement for Black Lives, which speaks for the wider campaign and calls for the “end to the war against Black people”, on Monday issued the campaign's first comprehensive document setting out positions on US federal policies.Platform document addresses mostly American foreign policy, but singled out Israel in light of the billions of dollars military aid given to Israel by the United StatesThe charter states: “Israel is an apartheid state with over 50 laws on the book that sanction discrimination against the Palestinian people”, and added that the US, through its relations with the country, was “complicit in the genocide taking place against the Palestinian people”.
  • Pro-Israel and pro-Jewish groups were however quick to condemn the BLM statement.The Jewish Community Relations council based in Boston said it planned to disassociate from any group aligned with Black Lives Matter.
  • BLM was set up in 2012 after George Zimmerman was acquitted of the murder of 17-year old Trayvon Martin in Sanford, Florida, and to fight for what is says is the "virulent anti-black racism that permeates" American society.Palestinian activists famously used social media to give Black Lives Matter activists tips on how to deal with the inhalation of tear gas, after the police violently cracked down on protests in 2014 that erupted in Ferguson, Missouri following the death by the police of an unarmed black teenager, Michael Brown.  Activists aligned with Black Lives Matter have also frequently visited the occupied West Bank as part of “solidarity tours” aimed at learning about the situation on the ground.Prominent Black artists and actors, including Danny Glover and Lauryn Hill, released a video last year to highlight the connection between African-Americans and Palestinians living under occupation, following the Israeli assault on Gaza in 2014 that coincided with the protests in Ferguson, Missouri. Under the moniker "Black-Palestinian solidarity", the group said it was founded "in the course of resilience against the merciless edge of state-violence, protesters in Ferguson held up signs declaring solidarity with the people of Palestine".Numerous solidarity protests have also been held in London following the recent outburst of protests against police and state violence towards blacks in the US.Activists this morning shut down routes to key transport hubs in Britain, including London's Heathrow airport and a motorway in Birmingham, in protest at deaths in police custody and the deaths of black asylum seekers in immigration detention centres.
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    This is a coalition that has been in the brew for some time, very influential particularly on college campuses.
Paul Merrell

NSA chief criticises media and suggests UK was right to detain David Miranda | World news | theguardian.com - 0 views

  • The outgoing director of the National Security Agency lashed out at media organizations reporting on Edward Snowden’s surveillance revelations, suggesting that British authorities were right to detain David Miranda on terrorism charges and that reporters lack the ability to properly analyze the NSA’s broad surveillance powers.General Keith Alexander, who has furiously denounced the Snowden revelations, said at a Tuesday cybersecurity panel that unspecified “headway” on what he termed “media leaks” was forthcoming in the next several weeks, possibly to include “media leaks legislation.”
  • The general, who is due to retire in the next several weeks, said that the furore over Snowden’s surveillance revelations – which he referred to only as “media leaks” – was complicating his ability to get congressional support for a bill that would permit the NSA and the military Cyber Command he also helms to secretly communicate with private entities like banks about online data intrusions and attacks.“We’ve got to handle media leaks first,” Alexander said.“I think we are going to make headway over the next few weeks on media leaks. I am an optimist. I think if we make the right steps on the media leaks legislation, then cyber legislation will be a lot easier,” Alexander said.The specific legislation to which Alexander referred was unclear. Angela Canterbury, the policy director for the Project on Government Oversight, a watchdog group, said she was unaware of any such bill. Neither was Steve Aftergood, an intelligence policy analyst at the Federation of American Scientists.The NSA’s public affairs office did not immediately respond to a request for comment.Alexander has previously mused about “stopping” journalism related to the Snowden revelations.“We ought to come up with a way of stopping it. I don’t know how to do that. That’s more of the courts and the policymakers but, from my perspective, it’s wrong to allow this to go on,” he told an official Defense Department blog in October.
  • While Attorney General Eric Holder said last year that he had no plans to pursue charges against Greenwald, pro-NSA officials have recently taken to using loaded legal language when referring to the journalists reporting on the Snowden documents.James Clapper, the director of national intelligence, called on Snowden and unnamed “accomplices” to return the surveillance documents cache during congressional testimony in January. The chairman of the House intelligence committee, Mike Rogers of Michigan, called Greenwald a “thief” last month.Like other NSA officials and their allies over the past several months, Alexander has become more visible to the public, part of the NSA’s push to regain control of the public narrative as the Obama administration and members of Congress debate the future scope of the NSA’s powers.In an October interview with the New York Times, Alexander said: “I do feel it’s important to have a public, transparent discussion on cyber so that the American people know what’s going on.”
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  • But staff at Georgetown University, which sponsored the Tuesday cybersecurity forum, took the microphone away from a Guardian reporter who attempted to ask Alexander if the NSA had missed the signs of Russia’s invasion and occupation of Ukraine, which appeared to take Obama administration policymakers by surprise.Although the event was open to reporters, journalists were abruptly told following the NSA director’s remarks that they were not permitted to ask questions of Alexander, who did not field the Ukraine question. Following the event, security staff closed a stairwell gate on journalists who attempted to ask Alexander questions on his way out.
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    The scary part is that Alexander apparently believes Congress will pass such legislation and the Supreme Court will uphold it. That's despite even mainstream media having declared open season on the NSA because of government prosecutions of members of the media for publishing leaks and prosecutions of members of the media for refusing to reveal sources.  
Paul Merrell

Asia Times Online :: Middle East News, Iraq, Iran current affairs - 2 views

  • There is nothing tragic about the Obama presidency, capable of drawing the analytical talents of a neo-Plutarch or a neo-Gibbon. This is more like a Pirandello farce, a sort of Character in Search of An Author. Candidates to Author are well documented - from the Israel lobby to the House of Saud, from a select elite of the industrial-military-security complex to, most of all, the rarified banking/financial elite, the real Masters of the Universe. Poor Barack is just a cipher, a <a href='http://asianmedia.com/GAAN/www/delivery/ck.php?n=a9473bc7&cb=%n' target='_blank'><img src='http://asianmedia.com/GAAN/www/delivery/avw.php?zoneid=36&cb=%n&n=a9473bc7&ct0=%c' border='0' alt='' ></a> functionary of empire, whose ''deciding'' repertoire barely extends to what trademark smile to flash at the requisite photo-ops. There's nothing ''tragic'' about the fact that during this week - marking the 12th anniversary of 9/11 - this presidency will be fighting for its bombing ''credibility'' trying to seduce Republican hawks in the US Congress while most of the warmongers du jour happen to be Democrats.
  • Republicans are torn between supporting the president they love to hate and delivering him a stinging rebuke - as much as they are aching to follow the orders of their masters, ranging from the American Israel Public Affairs Committee to military contractors. Once again, this is farce - caused by the fact that a man elected to finish off wars is eager to start yet another one. And once again without a United Nations vote. The White House ''strategy'' in this crucial negotiating week boils down to this; to convince the US Congress that the United States must start a war on Syria to punish an ''evil dictator'' - once again, as bad as Hitler - for gassing children. The evidence? It's ''indisputable''. Well, it's not ''irrefutable''. It's not even ''beyond-a-reasonable-doubt''. As Obama's Chief of Staff Denis McDonough admitted, with a straight face, it boils down to ''a quite strong common sense test, irrespective of the intelligence, that suggests that the regime carried this out''. So if this is really about ''common sense'', the president is obviously not being shown by his close coterie of sycophants this compendium of common sense, compiled by a group of top, extremely credible former US intelligence officials, which debunks all the ''evidence'' as flawed beyond belief. To evoke a farce from 12 years ago, this clearly seems to be a case of ''facts being fixed around the policy''.
  • The Arab street doesn't buy it because they clearly see through the hypocrisy; the desperate rush to ''punish'' the Bashar al-Assad government in Syria while justifying everything the apartheid state of Israel perpetrates in occupied Palestine. The Muslim world doesn't buy it because it clearly sees the demonization only applies to Muslims - from Arafat to bin Laden to Saddam to Gaddafi and now Assad. It would never apply to the military junta in Myanmar, which was clever enough to engineer an ''opening''; the next day Westerners were lining up to kiss the hem of Burmese longyis. It would never apply to the Islam Karimov dictatorship in Uzbekistan because ''we'' always need to seduce him as one of our bastards away from Russia and China. It eventually applies, on and off, to the Kim dynasty in North Korea, but with no consequences - because these are badass Asians who can actually respond to an US attack. Informed public opinion across the developing world does not buy it because they clearly see, examining the historical record, that Washington would never really be bothered with the sorry spectacle of Arabs killing Arabs, or Muslims killing Muslims, non-stop. The 1980-1988 Iran-Iraq war is a prime piece of evidence.
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  • Then there's the ''credibility'' farce. The Obama administration has convoluted the whole world in its own self-spun net, insisting that the responsibility for the ''red line'' recklessly drawn by the president is in fact global. Yet the pesky ''world'' is not buying it.
  • At the Group of 20 summit last week, the BRICS group of emerging powers - Brazil, Russia, India, China and South Africa - as well as Indonesia and Argentina, clearly stressed that a war on Syria without UN Security Council approval would qualify Obama as a war criminal. Even among the European poodles ''support'' for the White House is extremely qualified. Germany's Angela Merkel and even France's attack dog Francois Hollande said the primacy is with the UN. The European Union as a whole wants a political solution. It's enlightening to remember that the EU in Brussels can issue arrest warrants for heads of EU governments guilty of war crimes. Someone in Paris must have warned attack dog Hollande that he would not welcome the prospect of slammer time. ''Evil'' as a political category is something worthy of the brain dead. The key question now revolves around the axis of warmongers - Washington, Israel and the House of Saud. Will the Israel lobby, the more discreet but no less powerful Saudi lobby, and the Return of the Living Dead neo-cons convince the US Congress to fight their war?
  • And then there's the curioser and curioser case of al-Qaeda - essentially the Arabic denomination for a CIA database of US-Pakistani-Saudi trained mujahideen during the 1980s: the oh so convenient transnational bogeyman that ''legitimized'' the Global War On Terror (GWOT) of the George W Bush years; the ''opening'' for al-Qaeda to move to Iraq; and now, no middle men; the CIA and the Obama administration fighting side-by-side with al-Qaeda in Syria. No wonder the denomination ''al-CIAeda'' has gone viral. With farce after farce after farce piling up in their own Tower of Babel, the much-vaunted ''US credibility'' is in itself the biggest farce of all. Politically, no one knows how the vacuum will be filled. It won't be via the UN. It won't be via the BRICS. It won't be via the G-20 - which is seriously divided; at least new multipolar players are carrying way more weight than US poodles. Much would be made to restore ''US credibility'' if the Obama administration had the balls to force both the House of Saud and Qatar (''300 people and a TV station'', in the epic definition of Saudi Arabia's Prince Bandar Sultan - aka Bandar Bush) to end once and for all their weaponizing of hardcore ''rebels'' and ultimately hardcore jihadis, and accept Iran in the negotiating table for a real Geneva II peace process in Syria. It won't happen because this bypasses farce. Once again; helpless Barack is just a paperboy. The plutocrats in charge are getting extremely nervous. The system is melting - and they need to act fast.
  • They need a Syria as docile as the Arab petro-monarchies. They want to hit Russia bad - and then discuss missile defense and Russian influence in Eastern Europe from a position of force. They want to hit Iran bad - and then continue to issue ultimatums from a position of force. They want to facilitate yet another Israeli attempt to capture southern Lebanon (it's the water, stupid). They want a monster gas pipeline from Qatar for European customers bypassing Iran and Syria as well as Gazprom. Most of all, this is all about control of natural resources and channels of distribution. These are real motives - and they have nothing to do with farce. Farce is only deployed to kill any possibility of real diplomacy and real political discussion. Farce is a theatrical mask - as in ''humanitarian'' imperialism - the ''acceptable'' version of the Dick Cheney-run years. It's as if Dick Cheney had never left the building; paperboy Barack is Dick Cheney with a ''human'' face. The only good outcome in this multi-sorrowful tale is that the real ''international community'', all around the world, has seen the naked Emperor in all its (farcical) glory.
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    What can I say? The iconoclastic Pepe Escobar strikes again. 
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    Outstanding article Paul. Wow! Watching the 911 link now. But here's one for you: Massimo Mazzucco's new 5-hour documentary "September 11- The New Pearl Harbor" summarizes 12 years of public debate on 9-11, looking at the events from all sides. Watch a trailer for the film here: http://goo.gl/M5c0dj Full five hours available here: http://www.luogocomune.net/site/modules/sections/index.php?op=viewarticle&artid=167 I listened to a two hour interview with Massimo last night. Awesome stuff.
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    A 5-hour documentary will have to wait for tomorrow. I'm about 7 hours away from a deadline for the current development cycle's Help file. :-) I do think Pepe is a off on a couple of details in this article. The Neocons were mostly silent on this one and Rumsfeld came out against the intervention, saying that Obama hadn't made a valid case for war. That's most likely because the Neocons are joined at the hip with Israeli government and that government is a house divided this time around, with only factions supporting the military strike. The current thinking in Tel Aviv/Jerusalem is, in line with the Israeli right's long term strategy, that it's just fine with them to have Muslims running around killing each other in Syria. That long-term strategy is to destabilize Israel's Arab neighbor states while Israel builds its economic empire and military hegemony in the region. Israeli government isn't exactly thrilled by the prospect of Obama delivering fulfillment of the Saudi goal of transforming Syria from a secular state into a non-secular Islamic state run by Wahabi extremists. Such a state, armed to the teeth by the U.S. and/or the Saudi-Qatari zillionaires could be very bad news for Israel. Notably, the very strongest case thus far that the August 21 chemical attack was conducted by the opposition forces with the U.S. and Syria in on it to create a false flag attack, has been delivered in installments by Yossef Bodansky, an Israeli-American uber-scholar of Islamic "terrorism" and Soviet/Russian weaponry who is incapable of criticising Israel's decades-long terrorism inflicted on the Palestinian people and Israel's continuing unlawful occupation of Palestine plus parts of Jordan, Syria, and Lebanon. Bodanysky sits at the center of an intelligence web of intelligence professionals from nations worried about Islamic "terrorism." In other words, he's extremely pro-Israeli and to boot, very close to Mossad and Israel's IDF intelligence forces. Israel's AIPAC lobby d
Paul Merrell

If GCHQ wants to improve national security it must fix our technology | Technology | theguardian.com - 0 views

  • In a recent column, security expert Bruce Schneier proposed breaking up the NSA – handing its offensive capabilities work to US Cyber Command and its law enforcement work to the FBI, and terminating its programme of attacking internet security. In place of this, Schneier proposed that “instead of working to deliberately weaken security for everyone, the NSA should work to improve security for everyone.” This is a profoundly good idea for reasons that may not be obvious at first blush.People who worry about security and freedom on the internet have long struggled with the problem of communicating the urgent stakes to the wider public. We speak in jargon that’s a jumble of mixed metaphors – viruses, malware, trojans, zero days, exploits, vulnerabilities, RATs – that are the striated fossil remains of successive efforts to come to grips with the issue. When we do manage to make people alarmed about the stakes, we have very little comfort to offer them, because Internet security isn’t something individuals can solve.
  • I remember well the day this all hit home for me. It was nearly exactly a year ago, and I was out on tour with my novel Homeland, which tells the story of a group of young people who come into possession of a large trove of government leaks that detail a series of illegal programmes through which supposedly democratic governments spy on people by compromising their computers.
  • I explained the book’s premise, and then talked about how this stuff works in the real world. I laid out a parade of awfuls, including a demonstrated attack that hijacked implanted defibrillators from 10 metres’ distance and caused them to compromise other defibrillators that came into range, implanting an instruction to deliver lethal shocks at a certain time in the future. I talked about Cassidy Wolf, the reigning Miss Teen USA, whose computer had been taken over by a “sextortionist” who captured nude photos of her and then threatened to release them if she didn’t perform live sex shows for him. I talked about the future of self-driving cars, smart buildings, implanted hearing aids and robotic limbs, and explained that the world is made out of computers that we put our bodies into, and that we put inside our bodies.These computers are badly secured. What’s more, governments and their intelligence agencies are actively working to undermine the security of our computers and networks. This was before the Snowden revelations, but we already knew that governments were buying “zero-day vulnerabilities” from security researchers. These are critical bugs that can be leveraged to compromise entire systems. Until recently, the normal response to the discovery of one of these “vulns” was to report them to the vendor so they could be repaired.
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  • But spy-agencies and law-enforcement have created a bustling marketplace for “zero-days,” which are weaponised for the purpose of attacking the computers and networks of “bad guys”. The incentives have shifted, and now a newly discovered bug had a good chance of remaining unpatched and live in the field because governments wanted to be able to use it to hack their enemies.
  • Last year, when I finished that talk in Seattle, a talk about all the ways that insecure computers put us all at risk, a woman in the audience put up her hand and said, “Well, you’ve scared the hell out of me. Now what do I do? How do I make my computers secure?”And I had to answer: “You can’t. No one of us can. I was a systems administrator 15 years ago. That means that I’m barely qualified to plug in a WiFi router today. I can’t make my devices secure and neither can you. Not when our governments are buying up information about flaws in our computers and weaponising them as part of their crime-fighting and anti-terrorism strategies. Not when it is illegal to tell people if there are flaws in their computers, where such a disclosure might compromise someone’s anti-copying strategy.But: If I had just stood here and spent an hour telling you about water-borne parasites; if I had told you about how inadequate water-treatment would put you and everyone you love at risk of horrifying illness and terrible, painful death; if I had explained that our very civilisation was at risk because the intelligence services were pursuing a strategy of keeping information about pathogens secret so they can weaponise them, knowing that no one is working on a cure; you would not ask me ‘How can I purify the water coming out of my tap?’”
  • Because when it comes to public health, individual action only gets you so far. It doesn’t matter how good your water is, if your neighbour’s water gives him cholera, there’s a good chance you’ll get cholera, too. And even if you stay healthy, you’re not going to have a very good time of it when everyone else in your country is striken and has taken to their beds.If you discovered that your government was hoarding information about water-borne parasites instead of trying to eradicate them; if you discovered that they were more interested in weaponising typhus than they were in curing it, you would demand that your government treat your water-supply with the gravitas and seriousness that it is due.The public health analogy is suprisingly apt here. The public health threat-model is in a state of continuous flux, because our well-being is under continuous, deliberate attack from pathogens for whom we are, at best, host organisms, and at worst, dinner. Evolution drives these organisms to a continuously shifting array of tactics to slide past our defenses.Public health isn’t just about pathogens, either – its thorniest problems are about human behaviour and social policy. HIV is a blood-borne disease, but disrupting its spread requires changes to our attitudes about sex, pharmaceutical patents, drugs policy and harm minimisation. Almost everything interesting about HIV is too big to fit on a microscope slide.
  • And so it is for security: crypto is awesome maths, but it’s just maths. Security requires good password choice, good password management, good laws about compelled crypto disclosure, transparency into corporate security practices, and, of course, an end to the governmental practice of spending $250M/year on anti-security sabotage through the NSA/GCHQ programmes Bullrun and Edgehill.
  • But for me, the most important parallel between public health and internet security is their significance to our societal wellbeing. Everything we do today involves the internet. Everything we do tomorrow will require the internet. If you live near a nuclear power plant, fly in airplanes, ride in cars or trains, have an implanted pacemaker, keep money in the bank, or carry a phone, your safety and well-being depend on a robust, evolving, practice of network security.This is the most alarming part of the Snowden revelations: not just that spies are spying on all of us – that they are actively sabotaging all of our technical infrastructure to ensure that they can continue to spy on us.There is no way to weaken security in a way that makes it possible to spy on “bad guys” without making all of us vulnerable to bad guys, too. The goal of national security is totally incompatible with the tactic of weakening the nation’s information security.
  • “Virus” has been a term of art in the security world for decades, and with good reason. It’s a term that resonates with people, even people with only a cursory grasp of technology. As we strive to make the public and our elected representatives understand what’s at stake, let’s expand that pathogen/epidemiology metaphor. We’d never allow MI5 to suppress information on curing typhus so they could attack terrorists by infecting them with it. We need to stop allowing the NSA and GCHQ to suppress information on fixing bugs in our computers, phones, cars, houses, planes, and bodies.If GCHQ wants to improve the national security of the United Kingdom – if the NSA want to impove the American national security – they should be fixing our technology, not breaking it. The technology of Britons and Americans is under continuous, deadly attack from criminals, from foreign spies, and from creeps. Our security is better served by armouring us against these threats than it is by undermining security so that cops and spies have an easier time attacking “bad guys.”
Paul Merrell

White House defends 'Cuban Twitter' to stir unrest - Yahoo News - 0 views

  • The Obama administration defended its creation of a Twitter-like Cuban communications network to undermine the communist government, declaring the secret program was "invested and debated" by Congress and wasn't a covert operation that required White House approval.
  • But two senior Democrats on congressional intelligence and judiciary committees said Thursday they had known nothing about the effort, which one of them described as "dumb, dumb, dumb." A showdown with that senator's panel is expected next week, and the Republican chairman of a House oversight subcommittee said that it, too, would look into the program.An Associated Press investigation found that the network was built with secret shell companies and financed through a foreign bank. The project, which lasted more than two years and drew tens of thousands of subscribers, sought to evade Cuba's stranglehold on the Internet with a primitive social media platform.First, the network was to build a Cuban audience, mostly young people. Then, the plan was to push them toward dissent.
  • Yet its users were neither aware it was created by a U.S. agency with ties to the State Department, nor that American contractors were gathering personal data about them, in the hope that the information might be used someday for political purposes.It is unclear whether the scheme was legal under U.S. law, which requires written authorization of covert action by the president as well as congressional notification. White House spokesman Jay Carney said he was not aware of individuals in the White House who had known about the program.
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  • USAID's top official, Rajiv Shah, is scheduled to testify on Tuesday before the Senate Appropriations State Department and Foreign Operations Subcommittee, on the agency's budget. The subcommittee's chairman, Patrick Leahy, a Democrat, is the senator who called the project "dumb, dumb, dumb" during an appearance Thursday on MSNBC.The administration said early Thursday that it had disclosed the initiative to Congress — Carney said the program had been "debated in Congress" — but hours later the narrative had shifted to say that the administration had offered to discuss funding for it with the congressional committees that approve federal programs and budgets."We also offered to brief our appropriators and our authorizers," said State Department spokeswoman Marie Harf. She added that she was hearing on Capitol Hill that many people support these kinds of democracy promotion programs. And some lawmakers did speak up on that subject. But by late Thursday no members of Congress had acknowledged being aware of the Cuban Twitter program earlier than this week.
  • Harf described the program as "discreet" but said it was in no way classified or covert. Harf also said the project, dubbed ZunZuneo, did not rise to a level that required the secretary of state to be notified. Neither former Secretary of State Hillary Rodham Clinton nor John Kerry, the current occupant of the office, was aware of ZunZuneo, she said.In his prior position as chairman of the Senate Foreign Relations Committee, Kerry had asked congressional investigators to examine whether or not U.S. democracy promotion programs in Cuba were operated according to U.S. laws, among other issues. The resulting report, released by the Government Accountability Office in January 2013, does not examine whether or not the programs were covert. It does not say that any U.S. laws were broken.The GAO report does not specifically refer to ZunZuneo, but does note that USAID programs included "support for the development of independent social networking platforms."
  • "I know they said we were notified," Leahy told AP. "We were notified in the most oblique way, that nobody could understand it. I'm going to ask two basic questions: Why weren't we specifically told about this if you're asking us for money? And secondly, whose bright idea was this anyway?"The Republican chairman of a House oversight subcommittee said his panel will be looking into the project, too."That is not what USAID should be doing," said Rep. Jason Chaffetz, the Republican chairman of the House Oversight and Government Reform National Security Subcommittee. "USAID is flying the American flag and should be recognized around the globe as an honest broker of doing good. If they start participating in covert, subversive activities, the credibility of the United States is diminished."
  • At minimum, details uncovered by the AP appear to muddy the USAID's longstanding claims that it does not conduct covert actions, and the details could undermine the agency's mission to deliver aid to the world's poor and vulnerable — an effort that requires the trust and cooperation of foreign governments.Leahy and Rep. C.A. Dutch Ruppersberger, the top Democrat on the House Intelligence Committee, said they were unaware of ZunZuneo.
  • USAID and its contractors went to extensive lengths to conceal Washington's ties to the project, according to interviews and documents obtained by the AP. They set up front companies in Spain and the Cayman Islands to hide the money trail, and recruited CEOs without telling them they would be working on a U.S. taxpayer-funded project."There will be absolutely no mention of United States government involvement," according to a 2010 memo from Mobile Accord Inc., one of the project's creators. "This is absolutely crucial for the long-term success of the service and to ensure the success of the Mission."ZunZuneo was publicly launched shortly after the 2009 arrest in Cuba of American contractor Alan Gross. He was imprisoned after traveling repeatedly to the country on a separate, clandestine USAID mission to expand Internet access using sensitive technology that only governments use.The AP obtained more than 1,000 pages of documents about the ZunZuneo project's development. It independently verified the project's scope and details in the documents through publicly available databases, government sources and interviews with those involved.
  • The social media project began after Washington-based Creative Associates International obtained a half-million Cuban cellphone numbers. It was unclear to the AP how the numbers were obtained, although documents indicate they were done so illicitly from a key source inside the country's state-run provider. Project organizers used those numbers to start a subscriber base.ZunZuneo's organizers wanted the social network to grow slowly to avoid detection by the Cuban government. Eventually, documents and interviews reveal, they hoped the network would reach critical mass so that dissidents could organize "smart mobs" — mass gatherings called at a moment's notice — that could trigger political demonstrations, or "renegotiate the balance of power between the state and society."At a 2011 speech at George Washington University, Clinton said the U.S. helps people in "oppressive Internet environments get around filters." Noting Tunisia's role in the Arab Spring, she said people used technology to help "fuel a movement that led to revolutionary change."Suzanne Hall, then a State Department official working on Clinton's social media efforts, helped spearhead an attempt to get Twitter founder Jack Dorsey to take over the ZunZuneo project, documents indicate. Dorsey declined to comment.
  • The estimated $1.6 million spent on ZunZuneo was publicly earmarked for an unspecified project in Pakistan, public government data show, but those documents don't reveal where the funds were actually spent.ZunZuneo's organizers worked hard to create a network that looked like a legitimate business, including the creation of a companion website — and marketing campaign — so users could subscribe and send their own text messages to groups of their choice."Mock ad banners will give it the appearance of a commercial enterprise," one written proposal obtained by the AP said. Behind the scenes, ZunZuneo's computers were also storing and analyzing subscribers' messages and other demographic information, including gender, age, "receptiveness" and "political tendencies." USAID believed the demographics on dissent could help it target its other Cuba programs and "maximize our possibilities to extend our reach."
  • Executives set up a corporation in Spain and an operating company in the Cayman Islands — a well-known British offshore tax haven — to pay the company's bills so the "money trail will not trace back to America," a strategy memo said. Disclosure of that connection would have been a catastrophic blow, they concluded, because it would undermine the service's credibility with subscribers and get it shut down by the Cuban government.Similarly, subscribers' messages were funneled through two other countries — and never through American-based computer servers.Denver-based Mobile Accord considered at least a dozen candidates to head the European front company. One candidate, Francoise de Valera, told the AP she was told nothing about Cuba or U.S. involvement.
  • James Eberhard, Mobile Accord's CEO and a key player in the project's development, declined to comment. Creative Associates referred questions to USAID.For more than two years, ZunZuneo grew, reaching at least 40,000 subscribers. But documents reveal the team found evidence Cuban officials tried to trace the text messages and break into the ZunZuneo system. USAID told the AP that ZunZuneo stopped in September 2012 when a government grant ended.
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Paul Merrell

Pentagon preparing for mass civil breakdown | Nafeez Ahmed | Environment | theguardian.com - 0 views

  • A US Department of Defense (DoD) research programme is funding universities to model the dynamics, risks and tipping points for large-scale civil unrest across the world, under the supervision of various US military agencies. The multi-million dollar programme is designed to develop immediate and long-term "warfighter-relevant insights" for senior officials and decision makers in "the defense policy community," and to inform policy implemented by "combatant commands." Launched in 2008 – the year of the global banking crisis – the DoD 'Minerva Research Initiative' partners with universities "to improve DoD's basic understanding of the social, cultural, behavioral, and political forces that shape regions of the world of strategic importance to the US."
  • Twitter posts and conversations will be examined "to identify individuals mobilised in a social contagion and when they become mobilised."
  • Last year, the DoD's Minerva Initiative funded a project to determine 'Who Does Not Become a Terrorist, and Why?' which, however, conflates peaceful activists with "supporters of political violence" who are different from terrorists only in that they do not embark on "armed militancy" themselves. The project explicitly sets out to study non-violent activists
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  • According to Prof David Price, a cultural anthropologist at St Martin's University in Washington DC and author of Weaponizing Anthropology: Social Science in Service of the Militarized State, "when you looked at the individual bits of many of these projects they sort of looked like normal social science, textual analysis, historical research, and so on, but when you added these bits up they all shared themes of legibility with all the distortions of over-simplification. Minerva is farming out the piece-work of empire in ways that can allow individuals to disassociate their individual contributions from the larger project."Prof Price has previously exposed how the Pentagon's Human Terrain Systems (HTS) programme - designed to embed social scientists in military field operations - routinely conducted training scenarios set in regions "within the United States." Citing a summary critique of the programme sent to HTS directors by a former employee, Price reported that the HTS training scenarios "adapted COIN [counterinsurgency] for Afghanistan/Iraq" to domestic situations "in the USA where the local population was seen from the military perspective as threatening the established balance of power and influence, and challenging law and order."
  • One war-game, said Price, involved environmental activists protesting pollution from a coal-fired plant near Missouri, some of whom were members of the well-known environmental NGO Sierra Club. Participants were tasked to "identify those who were 'problem-solvers' and those who were 'problem-causers,' and the rest of the population whom would be the target of the information operations to move their Center of Gravity toward that set of viewpoints and values which was the 'desired end-state' of the military's strategy."Such war-games are consistent with a raft of Pentagon planning documents which suggest that National Security Agency (NSA) mass surveillance is partially motivated to prepare for the destabilising impact of coming environmental, energy and economic shocks.
  • Minerva is a prime example of the deeply narrow-minded and self-defeating nature of military ideology. Worse still, the unwillingness of DoD officials to answer the most basic questions is symptomatic of a simple fact – in their unswerving mission to defend an increasingly unpopular global system serving the interests of a tiny minority, security agencies have no qualms about painting the rest of us as potential terrorists.
Paul Merrell

Clinton can't separate herself from foreign-policy buffoons Saban and Adelson - Mondoweiss - 0 views

  • Are Adelson and Saban people that presidents should be looking to for Middle East policy advice? Apparently Hillary Clinton thinks so. It’s not a matter of necessity. As Bruck details in her profile of Saban, Obama kept Saban at a distance. He did not rely on Adelson money or on Saban money for his elections. Hillary Clinton is choosing to dance to a different tune. All of this brings into question Hillary Clinton’s judgement when it comes to the Middle East. As we know, she voted for the invasion of Iraq in 2003. In the 2008 campaign she refused to acknowledge the vote as a mistake; now she does.  However, this letter to Saban leaves one to wonder whether her judgment has improved.
  • Beinart thinks Clinton’s implicit support of the occupation and the fight against BDS is counterproductive and bad for Israel. Signing up with Saban and Adelson, says Beinart, “is disastrous” because Adelson and Saban are shutting out the very voices and constituencies with whom BDS enjoys credibility.  The Adelson/Saban approach, worries Beinart, will be counter-productive and will ultimately make the BDS movement more potent.  If Hillary Clinton were serious about fighting BDS, says Beinart, Saban would be the last person she’d ask. She’d be looking for ways to impose a two state solution from the outside.
  • The only way to prevent this Israeli unilateralism is through solutions “imposed from the outside.” …. How can direct negotiations possibly succeed when Benjamin Netanyahu has explicitly and repeatedly said that he doesn’t support a Palestinian state anytime soon, and doesn’t support one near the 1967 lines ever? The only way to make direct negotiations meaningful is to force Netanyahu, or some Israeli successor, back into the paradigm outlined by Bill Clinton and the Arab Peace Initiative [in the Oslo process] …. Unless that framework is “imposed from the outside,” people morally opposed to Israel’s occupation of the West Bank will see no hope for ending it without BDS. And they will gradually embrace the movement, even though it goes beyond the two-state solution to question the legitimacy of Israel as a Jewish state within any borders. The Obama administration, by signaling that it may support such a UN framework this fall, is pursuing the best alternative to BDS that exists today. If Hillary helps torpedo that UN initiative, Haim Saban should look forward to more letters from her about BDS in the future. Because the Democratic presidential frontrunner will have done her part to help it grow.
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  • Over the course of his Presidency Obama has successfully gotten Iran to halt its pursuit of a nuclear weapon and he has made efforts to normalize relations and bring Iran back into the international community. This effort has been shrilly opposed by Israel. Hillary Clinton has at times opposed the Obama administration’s approach on Iran. How would she balance her unceasing commitment to Israeli neoconservatives with America’s policy interests in the region as president? There are more questions than answers. In Syria as with Iraq, it’s clear Hillary’s instincts have been considerably more hawkish than Obama’s. Hawkish instincts proved a disaster in the wake of September 9, 2001. The fact that Clinton is unable to distance herself from Saban and Adelson, buffoons who don’t know what they’re talking about on BDS, leaves room for worry about how Hillary Clinton’s hawkish instincts would serve the country if she were president for the next four or eight years.
Paul Merrell

IETF Begins To Work On Designing A Surveillance-Resistant Net | Techdirt - 0 views

  • Edward Snowden's leaks show that the NSA and GCHQ have been systematically subverting key technologies that underlie the Internet. That betrayal of trust has prompted some soul-searching by the Net engineering community, which realizes that it needs to come up with more surveillance-resistant approaches. This story from Radio Netherlands Worldwide (RNW) provides information about the kind of thing they are working on in one key group, the Internet Engineering Task Force (IETF). It reports on a speech given by the IETF's chair, Jari Arkko, at the recent Internet Governance Forum in Bali, Indonesia.
  • Firstly, the IETF wants to eventually apply encryption to all web traffic. "Today, security only gets switched on for certain services like banking," Arkko explained, referring to IETF-developed standards like SSL -- the little lock that appears in the upper left corner of your browser to secure online purchases. "If we work hard, we can make [the entire internet] secure by default." To this end, the IETF might make encryption mandatory for HTTP 2.0, a new version of the basic web protocol. Secondly, the IETF plans to remove weak algorithms and strengthen existing algorithms behind encryption. This means that the US National Security Agency and other surveillors will find it harder to crack current forms of encryption.
  • Putting that in context, Axl Pavlik, the managing director of Europe's Internet Registry (RIPE NCC), notes that you can never stop surveillance completely, but you can make it more expensive: "You and I have limited resources, and the surveillor has limited resources -- maybe more than we have -- but if millions of users of the internet raise the bar a little bit, the requirements to surveil every little bit of internet traffic would be much higher," he explained to RNW. Mandatory use of encryption helps do that. And here's another good reason for adopting it: The IETF's plans also benefit people who are already encrypting their online activities themselves, argued Marco Hogewoning, technical adviser to RIPE NCC. According to him, these people currently stick out like a sore thumb to the very surveillors they hope to evade.
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  • He has a great analogy: "If you see an armoured car now on the street, you know there must be something valuable inside," Hogewoning explained. "If everybody drives around in an armoured car, I can go around and put a lot of effort into breaking into each and every car, and hope I get lucky and find something valuable inside, but it might be empty. If everybody encrypts everything, all you can see is armoured cars." However, valuable as these moves will be in raising the cost of surveillance, there is always the problem of the endpoints: While the IETF might be able to secure the pipes through which users' data travel, users must also be able to trust the parties where their data is stored: software, hardware and services such as Cisco, Gmail and Facebook. These parties can hand over user data directly to government agencies. To address that, technical improvements aren't enough -- we need political solutions, too. Unfortunately, those are rather more difficult to engineer.
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