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Paul Merrell

House Holds Lois Lerner in Contempt in IRS Scandal - 0 views

  • The House voted Wednesday to hold former IRS official Lois Lerner in contempt of Congress and to instruct the Justice Department to probe her for criminal charges. The actions mark the culmination of two simultaneous committee investigations into allegations that Lerner knowingly presided over the improper targeting of conservative outside groups seeking tax-exempt status with the agency, including stalling the application process and giving special scrutiny to organizations that appeared to be affiliated with the tea party movement.
  • One resolution (H Res 574), agreed to on a 231-187 vote, will make Lerner the sixth public official since 1982 to be held in contempt for her refusal to testify before the Oversight and Government Reform Committee. Lerner cited her Fifth Amendment right to remain silent in an appearance last year. The other resolution (H Res 565), referred by the Ways and Means Committee and supported Wednesday by a 250-168 vote, would call upon Attorney General Eric H. Holder Jr. to appoint a special prosecutor to evaluate whether Lerner should face criminal charges on specific counts of misconduct related to the scandal. Neither resolution is likely to yield results: The Justice Department is actually under no obligation to appoint a special counsel, and the criminal contempt statute says the U.S. attorney has a “duty” to convene a grand jury in an event of a contempt citation, but it doesn’t appear to be mandatory.
Paul Merrell

Fisa court oversight: a look inside a secret and empty process | Glenn Greenwald | Comment is free | guardian.co.uk - 0 views

  • Since we began began publishing stories about the NSA's massive domestic spying apparatus, various NSA defenders – beginning with President Obama - have sought to assure the public that this is all done under robust judicial oversight. "When it comes to telephone calls, nobody is listening to your telephone calls," he proclaimed on June 7 when responding to our story about the bulk collection of telephone records, adding that the program is "fully overseen" by "the Fisa court, a court specially put together to evaluate classified programs to make sure that the executive branch, or government generally, is not abusing them". Obama told Charlie Rose last night:"What I can say unequivocally is that if you are a US person, the NSA cannot listen to your telephone calls … by law and by rule, and unless they … go to a court, and obtain a warrant, and seek probable cause, the same way it's always been, the same way when we were growing up and we were watching movies, you want to go set up a wiretap, you got to go to a judge, show probable cause."The GOP chairman of the House Intelligence Committee, Mike Rogers, told CNN that the NSA "is not listening to Americans' phone calls. If it did, it is illegal. It is breaking the law." Talking points issued by the House GOP in defense of the NSA claimed that surveillance law only "allows the Government to acquire foreign intelligence information concerning non-U.S.-persons (foreign, non-Americans) located outside the United States."
  • The decisions about who has their emails and telephone calls intercepted by the NSA is made by the NSA itself, not by the Fisa court, except where the NSA itself concludes the person is a US citizen and/or the communication is exclusively domestic. But even in such cases, the NSA often ends up intercepting those communications of Americans without individualized warrants, and all of this is left to the discretion of the NSA analysts with no real judicial oversight.
  • The NSA's media defenders have similarly stressed that the NSA's eavesdropping and internet snooping requires warrants when it involves Americans. The Washington Post's Charles Lane told his readers: "the government needs a court-issued warrant, based on probable cause, to listen in on phone calls." The Post's David Ignatius told Post readers that NSA internet surveillance "is overseen by judges who sit on the Foreign Intelligence Surveillance Court" and is "lawful and controlled". Tom Friedman told New York Times readers that before NSA analysts can invade the content of calls and emails, they "have to go to a judge to get a warrant to actually look at the content under guidelines set by Congress."This has become the most common theme for those defending NSA surveillance. But these claim are highly misleading, and in some cases outright false.
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  • What is vital to recognize is that the NSA is collecting and storing staggering sums of communications every day. Back in 2010, the Washington Post reported that "every day, collection systems at the National Security Agency intercept and store 1.7 billion e-mails, phone calls and other types of communications." Documents published by the Guardian last week detail that, in March 2013, the NSA collected three billions of pieces of intelligence just from US communications networks alone.In sum, the NSA is vacuuming up enormous amounts of communications involving ordinary Americans and people around the world who are guilty of nothing. There are some legal constraints governing their power to examine the content of those communications, but there are no technical limits on the ability either of the agency or its analysts to do so. The fact that there is so little external oversight is what makes this sweeping, suspicion-less surveillance system so dangerous. It's also what makes the assurances from government officials and their media allies so dubious.
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    Glenn Greenwald strikes again with hard proof from NSA documents, dissecting procedures used throughout the intelligence establishment from the NSA to the President to Congress, casting severe doubt on what we have been told by those defending the NSA surveillance program. I have highlighted only a few points from this lengthy article. As to Greenwald's discussion of the FISA Court's weaknesses, he omitted one that I believe is incredibly, the lack of an adversarial system with a lawyer opposing what the government asks the Court to authorize. True, search warrants are normally issued in the U.S. with only the government represented in the process. But there is a crucial difference: once someone is charged with a crime, the warrant must be disclosed to the defendant who can ask the court to suppress all evidence unlawfully obtained not only through the warrant but also the fruits of any unlawfully obtained evidence, meaning subsequently discovered evidence that would not have been found absent the unlawfully obtained evidence. The same result can happen if the warrant is found to be invalid for any of a variety of reasons, or the officers exceeded the scope of the search authorized.  So in the normal search warrant process, the participation of an adversary attorney is only delayed; it is not virtually eliminated as it is in the FISA Court. Thus far, only those ordered to disclose records to the NSA have been granted standing to oppose disclosure, not those who have been surveilled. The entire U.S. judicial system is built around the principle of an adversarial process. Judges are expected to be neutral arbiters between two or more sides to a dispute. We do not have an inquisitorial system, as is used for example in some European nations, where the judge is also the investigator. The FISA court is presently composed of 11 federal district court judges who also preside over normal cases in their individual districts. Steeped in the adversarial system and th
Gary Edwards

A Government Failure, Not a Market Failure - WSJ.com - 0 views

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    Excerpt: After 2000, the national push toward home ownership intensified in three dimensions, leading to a doubling of housing prices in just five years' time. First, the Federal Reserve Board's interest-rate policy drove down the cost of borrowing money to unprecedented lows. Second, a common conviction arose that home ownership should be available even to those who, under prevailing conditions, could not afford it. Finally, private agencies charged with determining the risk and value of securities were exceptionally generous in their assessment of the financial products known as "derivatives" whose collateral resided in the value of thousands of mortgages bundled together. The rating agencies understated the risks from these bundled mortgages by assuming that home prices were simply going to rise forever. When the housing bubble burst in 2006, the damage to the financial system pushed the global economy into the worst contraction since the Great Depression. In the midst of the pain and suffering that have accompanied financial collapse and economic contraction-over $15 trillion in wealth has been lost by American households alone while, to date, more than 6 million job losses have boosted the unemployment rate to 9.4 percent-much of the blame has been placed on unregulated financial markets whose behavior is said to have revealed a terrible flaw in the foundation of capitalism itself. This was a market failure, we are told, and the promise of capitalism has always been that the self-correcting mechanisms built into the system would preclude the possibility of a systemic market failure. But the housing bubble only burst after government subsidies pushed house prices up so fast that marginal buyers could no longer afford to chase prices even higher. A bubble created by rigged financial markets and a government-sponsored obsession with home ownership is not a result of market failure, but rather, a result of bad public policy. The belief that home ownership,
Paul Merrell

Israel decries US 'knife in back' over Palestinian govt - Yahoo News - 0 views

  • Washington's support for a new Palestinian government backed by Israel's Islamist foe Hamas, has left the Jewish state feeling betrayed, triggering a new crisis with its closest ally. Several Israeli ministers expressed public anger on Tuesday after the US State Department said it was willing to work with the new Palestinian unity government put together by the West Bank leadership and Gaza's Hamas rulers. Technocratic in nature, the new government was sworn in on Monday in front of president Mahmud Abbas, with Washington offering its backing several hours later.
  • Speaking to reporters on Monday, State Department spokeswoman Jen Psaki said the new cabinet would be judged "by its actions.""At this point, it appears that president Abbas has formed an interim technocratic government that does not include ministers affiliated with Hamas," she said. "With what we know now, we will work with this government."
  • The US endorsement was viewed as a major blow for Israeli Prime Minister Benjamin Netanyahu, who had on Sunday urged the international community not to rush into recognising the new government, which he said would only "strengthen terror."
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  • "Unfortunately, American naivety has broken all records," said Communications Minister Gilad Erdan, a cabinet hardliner who is close to Netanyahu."Collaborating with Hamas, which is defined as a terror organisation in the United States, is simply unthinkable. "US capitulation to Palestinian tactics badly damages the chance of ever returning to negotiations and will cause Israel to take unilateral steps to defend its citizens from the government of terror which Abu Mazen (Abbas) has set up." Public radio said Netanyahu was feeling "betrayed and deceived," particularly as he had assured his security cabinet that US Secretary of State John Kerry had promised him Washington would not recognise the new government immediately.
  • "And it wasn't immediate -- it was five hours later that this recognition took place," the radio noted ironically. A senior political official quoted by the Israel Hayom freesheet, widely regarded as Netanyahu's mouthpiece, said the US move was "like a knife in the back." - 'Answer with annexation' - Israeli commentators said the Palestinians had chalked up a "major success" in driving a new wedge between Israel and its US ally.
  • With the peace process in tatters, hardliners within Netanyahu's rightwing coalition have been pushing for Israel to take unilateral steps such as the annexation of the main Jewish settlement blocs in the occupied West Bank.
  • The security cabinet agreed on Monday to set up a team to examine the annexation option, but Yediot Aharonot commentator Shimon Shiffer said the move was a sop to Bennett and other hardliners rather than a serious policy change.
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    What's remarkable here is that Obama has apparently ratcheted down his fear of the Israel Lobby. But it's not as though Mr. Netanyahu was not warned that the world would see Israel as responsible if it blew up the Kerry-brokered negotiation between Israel and Palestine. Israel did blow it up by not delivering the last shipment of Palestinian prisoners required by the pre-negotiation agreement, attempting to gain further concessions using their release as leverage.  Palestine responded by joining a large number of U.N. treaty organizations and was thus recognized by most nations on the planet as a nation: a critically important move, because it is recognition by other nations as a nation that qualifies Palestine as a full-fledged U.N. member rather than an observer state, an application Palestine can now make at the time of its choosing. That is also important because Palestine is now positioned to join the Rome Convention that created the International Criminal Court, providing Palestine with legal standing to file war crime charges against high Israeli officials that would then obligate the Court to investigate. Palestine is holding back on that move, using it as bargaining leverage on the world stage.   Palestine also responded by forming a coalition "unity" government with Hamas, the political party that nominally rules the Gaza strip, the world's largest open-air concentration camp. At Israel's request, the U.S. had several years ago designated Hamas as a terrorist organization. But that was a purely political move. It seems that the political situation has changed. Obama is pivoting out of the Mideast as he performs his ballyhooed "pivot to Asia," which is actually a pivot to contain Russia that isn't working and a pivot to subjugate Africa and its huge store of untapped natural resources, including lots of oil. Blocking China's economic deals in Africa with military force seems to be the current top concern in the White House. Israel was already a pari
Paul Merrell

Bail-In and the Financial Stability Board: The Global Bankers' Coup | nsnbc international - 0 views

  • Ellen H. Brown (WoD) : On December 11, 2014, the US House passed a bill repealing the Dodd-Frank requirement that risky derivatives be pushed into big-bank subsidiaries, leaving our deposits and pensions exposed to massive derivatives losses. The bill was vigorously challenged by Senator Elizabeth Warren; but the tide turned when Jamie Dimon, CEO of JPMorganChase, stepped into the ring. Perhaps what prompted his intervention was the unanticipated $40 drop in the price of oil. As financial blogger Michael Snyder points out, that drop could trigger a derivatives payout that could bankrupt the biggest banks. And if the G20’s new “bail-in” rules are formalized, depositors and pensioners could be on the hook. The new bail-in rules were discussed in my last last article entitled “New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND Pensioners.” They are edicts of the Financial Stability Board (FSB), an unelected body of central bankers and finance ministers headquartered in the Bank for International Settlements in Basel, Switzerland. Where did the FSB get these sweeping powers, and is its mandate legally enforceable?
  • Those questions were addressed in an article I wrote in June 2009, two months after the FSB was formed, titled “Big Brother in Basel: BIS Financial Stability Board Undermines National Sovereignty.” It linked the strange boot shape of the BIS to a line from Orwell’s 1984: “a boot stamping on a human face—forever.” The concerns raised there seem to be materializing, so I’m republishing the bulk of that article here. We need to be paying attention, lest the bail-in juggernaut steamroll over us unchallenged. The Shadowy Financial Stability Board Alarm bells went off in April 2009, when the Bank for International Settlements (BIS) was linked to the new Financial Stability Board (FSB) signed onto by the G20 leaders in London. The FSB was an expansion of the older Financial Stability Forum (FSF) set up in 1999 to serve in a merely advisory capacity by the G7 (a group of finance ministers formed from the seven major industrialized nations). The chair of the FSF was the General Manager of the BIS. The new FSB was expanded to include all G20 members (19 nations plus the EU).
  • Formally called the “Group of Twenty Finance Ministers and Central Bank Governors,” the G20 was, like the G7, originally set up as a forum merely for cooperation and consultation on matters pertaining to the international financial system. What set off alarms was that the new Financial Stability Board had real teeth, imposing “obligations” and “commitments” on its members; and this feat was pulled off without legislative formalities, skirting the usual exacting requirements for treaties. It was all done in hasty response to an “emergency.” Problem-reaction-solution was the slippery slope of coups. Buried on page 83 of an 89-page Report on Financial Regulatory Reform issued by the US Obama administration was a recommendation that the FSB strengthen and institutionalize its mandate to promote global financial stability. It sounded like a worthy goal, but there was a disturbing lack of detail. What was the FSB’s mandate, what were its expanded powers, and who was in charge? An article in The London Guardian addressed those issues in question and answer format:
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  • For three centuries, private international banking interests have brought governments in line by blocking them from issuing their own currencies and requiring them to borrow banker-issued “banknotes” instead. Political colonialism is now a thing of the past, but under the new FSB guidelines, nations could still be held in feudalistic subservience to foreign masters. Consider this scenario: the new FSB rules precipitate a massive global depression due to contraction of the money supply. XYZ country wakes up to the fact that all of this is unnecessary – that it could be creating its own money, freeing itself from the debt trap, rather than borrowing from bankers who create money on computer screens and charge interest for the privilege of borrowing it. But this realization comes too late: the boot descends and XYZ is crushed into line. National sovereignty has been abdicated to a private committee, with no say by the voters. Marilyn Barnewall, dubbed by Forbes Magazine the “dean of American private banking,” wrote in an April 2009 article titled “What Happened to American Sovereignty at G-20?”: It seems the world’s bankers have executed a bloodless coup and now represent all of the people in the world. . . . President Obama agreed at the G20 meeting in London to create an international board with authority to intervene in U.S. corporations by dictating executive compensation and approving or disapproving business management decisions.  Under the new Financial Stability Board, the United States has only one vote. In other words, the group will be largely controlled by European central bankers. My guess is, they will represent themselves, not you and not me and certainly not America.
  • Are these commitments legally binding? Adoption of the FSB was never voted on by the public, either individually or through their legislators. The G20 Summit has been called “a New Bretton Woods,” referring to agreements entered into in 1944 establishing new rules for international trade. But Bretton Woods was put in place by Congressional Executive Agreement, requiring a majority vote of the legislature; and it more properly should have been done by treaty, requiring a two-thirds vote of the Senate, since it was an international agreement binding on the nation. “Bail-in” is not the law yet, but the G20 governments will be called upon to adopt the FSB’s resolution measures when the proposal is finalized after taking comments in 2015. The authority of the G20 has been challenged, but mainly over whether important countries were left out of the mix. The omitted countries may prove to be the lucky ones, having avoided the FSB’s net.
Paul Merrell

The Ron Paul Institute for Peace and Prosperity : Top Ten Ways You Can Tell if Russia Has Invaded Ukraine - 0 views

  • Last Thursday the Ukrainian government, echoed by NATO spokesmen, declared that the Russian military is now operating within Ukraine's borders. Well, maybe it is and maybe it isn't; what do you know? They said the same thing before, most recently on August 13, and then on August 17, each time with either no evidence or fake evidence. But let's give them the benefit of the doubt. You be the judge. I put together this helpful list of top ten telltale signs that will allow you to determine whether indeed Russia invaded Ukraine last Thursday, or whether Thursday's announcement is yet another confabulation. (Credit to Roman Kretsul). Because if Russia invaded on Thursday morning, this is what the situation on the ground would look like by Saturday afternoon.
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    Very nicely done sarcastic rebuttal of U.S./Ukraine coup government charges that Russia has invaded Ukraine, done as a set of 10 questions. Leading to the same conclusion I reached in short order: If Russia had invaded, that war would already be over. Russia v. the coup government would be more akin to the "shock and awe" invasion of Iraq by the U.S. in 2003, with far less distance to travel. I doubt that any present or former member of any military force around the globe who has heard the propaganda believes it, except for those with such severe brain trauma that their IQs are now lower than their belt sizes. Russia has the second most powerful national military in the world; Ukraine ranks; one credible ranking of nations' military power puts Ukraine way down the list, at 21st, and that ranking was done before the bulk of the Ukraine fighter/interceptors and fixed wing attack aircraft were downed by shoulder-fired MANPAD ground-to-air missiles. 
Paul Merrell

Provocations as Pretexts for Imperial War: From Pearl Harbor to 9/11 | Global Research - 0 views

  • Wars in an imperialist democracy cannot simply be dictated by executive fiat, they require the consent of highly motivated masses who will make the human and material sacrifices. Imperialist leaders have to create a visible and highly charged emotional sense of injustice and righteousness to secure national cohesion and overcome the natural opposition to early death, destruction and disruption of civilian life and to the brutal regimentation that goes with submission to absolutist rule by the military. The need to invent a cause is especially the case with imperialist countries because their national territory is not under threat. There is no visible occupation army oppressing the mass of the people in their everyday life. The ‘enemy’ does not disrupt everyday normal life – as forced conscription would and does. Under normal peaceful time, who would be willing to sacrifice their constitutional rights and their participation in civil society to subject themselves to martial rule that precludes the exercise of all their civil freedoms?
  • The task of imperial rulers is to fabricate a world in which the enemy to be attacked (an emerging imperial power like Japan) is portrayed as an ‘invader’ or an ‘aggressor’ in the case of revolutionary movements (Korean and Indo-Chinese communists) engaged in a civil war against an imperial client ruler or a ‘terrorist conspiracy’ linked to an anti-imperialist, anti-colonial Islamic movements and secular states. Imperialist-democracies in the past did not need to consult or secure mass support for their expansionist wars; they relied on volunteer armies, mercenaries and colonial subjects led and directed by colonial officers. Only with the confluence of imperialism, electoral politics and total war did the need arise to secure not only consent, but also enthusiasm, to facilitate mass recruitment and obligatory conscription. Since all US imperial wars are fought ‘overseas’ – far from any immediate threats, attacks or invasions – -US imperial rulers have the special task of making the ‘causus bellicus’ immediate, ‘dramatic’ and self-righteously ‘defensive’. To this end US Presidents have created circumstances, fabricated incidents and acted in complicity with their enemies, to incite the bellicose temperament of the masses in favor of war.
  • The pretext for wars are acts of provocation which set in motion a series of counter-moves by the enemy, which are then used to justify an imperial mass military mobilization leading to and legitimizing war. State ‘provocations’ require uniform mass media complicity in the lead-up to open warfare: Namely the portrayal of the imperial country as a victim of its own over-trusting innocence and good intentions. All four major US imperial wars over the past 67 years resorted to a provocation, a pretext, and systematic, high intensity mass media propaganda to mobilize the masses for war. An army of academics, journalists, mass media pundits and experts ‘soften up’ the public in preparation for war through demonological writing and commentary: Each and every aspect of the forthcoming military target is described as totally evil – hence ‘totalitarian’ – in which even the most benign policy is linked to demonic ends of the regime. Since the ‘enemy to be’ lacks any saving graces and worst, since the ‘totalitarian state’ controls everything and everybody, no process of internal reform or change is possible. Hence the defeat of ‘total evil’ can only take place through ‘total war’. The targeted state and people must be destroyed in order to be redeemed. In a word, the imperial democracy must regiment and convert itself into a military juggernaut based on mass complicity with imperial war crimes. The war against ‘totalitarianism’ becomes the vehicle for total state control for an imperial war.
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  • In the case of the US-Japanese war, the US-Korean war, the US-Indochinese war and the post-September 11 war against an independent secular nationalist regime (Iraq) and the Islamic Afghan republic, the Executive branch (with the uniform support of the mass media and congress) provoked a hostile response from its target and fabricated a pretext as a basis for mass mobilization for prolonged and bloody wars.
  • Wars in an imperialist democracy cannot simply be dictated by executive fiat, they require the consent of highly motivated masses who will make the human and material sacrifices. Imperialist leaders have to create a visible and highly charged emotional sense of injustice and righteousness to secure national cohesion and overcome the natural opposition to early death, destruction and disruption of civilian life and to the brutal regimentation that goes with submission to absolutist rule by the military. The need to invent a cause is especially the case with imperialist countries because their national territory is not under threat. There is no visible occupation army oppressing the mass of the people in their everyday life. The ‘enemy’ does not disrupt everyday normal life – as forced conscription would and does. Under normal peaceful time, who would be willing to sacrifice their constitutional rights and their participation in civil society to subject themselves to martial rule that precludes the exercise of all their civil freedoms?
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    Lengthy look at provocations and pretexts used to start U.S. foreign wars. 
Paul Merrell

Mubarak, Nazif to be investigated for allegedly serving as proxy for US torture | Cairo Post - 0 views

  • CAIRO: Former President Hosni Mubarak and his former Prime Minister Ahmed Nazif will be investigated for serving as a proxy to torture U.S. prisoners, Youm7 reported Wednesday. Attorney General Hisham Barakat referred the case, filed by lawyer Samir Sabry, to the Supreme State Security prosecution. Sabry noted in his litigation that Egypt was cited in the December Senate CIA report as having tortured detainees in extraordinary rendition under the Mubarak regime. In his 2007 book The Guantanamo Files, British investigative journalist Andy Worthington wrote that a Libyan was rendered in 2003 to Egypt where he was tortured to make “a false confession that two al-Qaeda operatives had been receiving information from Saddam Hussein about the use of chemical and biological weapons, which was subsequently used to justify the invasion of Iraq in March 2003.”
  • In 2009, a former Pakistani Guantanamo detainee detailed his torture in Egypt after the CIA sent him to Cairo. Muhammad Saad Iqbal was arrested in Jakarta in 2002 over supporting an Islamic group, but he was transported days after being arrested to Egypt where he were beaten, shackled, received electroshocks and was sleep-deprived for six months, the New York Times reported in 2009. Iqbal, who was released in 2008, confessed under torture that he had met with Osama bin Laden. Mubarak, who is still jailed, was acquitted of graft, and charges of murdering January 25 Revolution protesters were dropped in November. His appeal over a three-year sentence for embezzling funds was accepted earlier in January. His two sons, Gamal and Alaa, walked free late January pending an embezzlement lawsuit, after serving the maximum remand period of two years.
Paul Merrell

New Saudi King Tied to Al Qaeda, Bin Laden and Islamic Terrorism Washington's Blog - 0 views

  • We’ve long noted that Saudi Arabia is a huge supporter of terrorism. But the new Saudi king is particularly bad. Investors Business Daily notes: King Salman has a history of funding al-Qaida, and his son has been accused of knowing in advance about the 9/11 attacks. *** Salman once ran a Saudi charity tied to al-Qaida and has been named a defendant in two lawsuits accusing the Saudi royal family of helping the 9/11 terrorists, one of which the U.S. Supreme Court recently let move forward after years of being blocked by the State Department and the well-funded Saudi lobby. Plaintiffs have provided an enormous amount of material to source their accusations against Salman. Here’s why his ascension to the throne is not good news, especially as the terrorism threat grows: • Salman once headed the Saudi High Commission for Relief to Bosnia and Herzegovina, which served as a key charitable front for al-Qaida in the Balkans. • According to a United Nations-sponsored investigation, Salman in the 1990s transferred more than $120 million from commission accounts under his control — as well as his own personal accounts — to the Third World Relief Agency, another al-Qaida front and the main pipeline for illegal weapons shipments to al-Qaida fighters in the Balkans.
  • • A U.N. audit found that the money was transferred following meetings with Salman, transfers that had no legitimate “humanitarian” purpose. • Former CIA officer Robert Baer has reported that an international raid of Saudi High Commission offices found evidence of terrorist plots against America. • Baer also revealed that Salman “personally approved” distribution of funds from the International Islamic Relief Organization, which also has provided material support to al-Qaida. • A recent Gulf Institute report says Salman and former Saudi intelligence chief Prince Turki al-Faisal knowingly aided and abetted al-Qaida in the run-up to 9/11. • Salman works closely with Saudi clerics Saleh al-Moghamsy, a radical anti-Semite, and Safar Hawali, a one-time mentor of Osama bin Laden, according to the Washington Free Beacon. • In “Why America Slept,” author Gerald Posner claimed that Salman’s son Ahmed bin Salman also had ties to al-Qaida and even advance knowledge of the Sept. 11, 2001 attacks.
  • David Andrew Weinberg provides a superb round-up of Salman’s ties to terrorism and extremism: As former CIA official Bruce Riedel astutely pointed out, Salman was the regime’s lead fundraiser for mujahideen, or Islamic holy warriors, in Afghanistan in the 1980s, as well as for Bosnian Muslims during the Balkan struggles of the 1990s. In essence, he served as Saudi Arabia’s financial point man for bolstering fundamentalist proxies in war zones abroad. As longtime governor of Riyadh, Salman was often charged with maintaining order and consensus among members of his family. Salman’s half brother King Khalid (who ruled from 1975 to 1982) therefore looked to him early on in the Afghan conflict to use these family contacts for international objectives, appointing Salman to run the fundraising committee that gathered support from the royal family and other Saudis to support the mujahideen against the Soviets. Riedel writes that in this capacity, Salman “work[ed] very closely with the kingdom’s Wahhabi clerical establishment.” Another CIA officer who was stationed in Pakistan in the late 1980s estimates that private Saudi donations during that period reached between $20 million and $25 million every month. And as Rachel Bronson details in her book, Thicker Than Oil: America’s Uneasy Partnership With Saudi Arabia, Salman also helped recruit fighters for Abdul Rasul Sayyaf, an Afghan Salafist fighter who served as a mentor to both Osama bin Laden and 9/11 mastermind Khalid Sheikh Mohammed.
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  • Reprising this role in Bosnia, Salman was appointed by his full brother and close political ally King Fahd to direct the Saudi High Commission for Relief of Bosnia and Herzegovina (SHC) upon its founding in 1992. Through the SHC, Salman gathered donations from the royal family for Balkan relief, supervising the commission until its until its recent closure in 2011. By 2001, the organization had collected around $600 million — nominally for relief and religious purposes, but money that allegedly also went to facilitating arms shipments, despite a U.N. arms embargo on Bosnia and other Yugoslav successor states from 1991 to 1996. And what kind of supervision did Salman exercise over this international commission? In 2001, NATO forces raided the SHC’s Sarajevo offices, discovering a treasure trove of terrorist materials: before-and-after photographs of al Qaeda attacks, instructions on how to fake U.S. State Department badges, and maps marked to highlight government buildings across Washington. The Sarajevo raid was not the first piece of evidence that the SHC’s work went far beyond humanitarian aid. Between 1992 and 1995, European officials tracked roughly $120 million in donations from Salman’s personal bank accounts and from the SHC to a Vienna-based Bosnian aid organization named the Third World Relief Agency (TWRA). Although the organization claimed to be focused on providing humanitarian relief, Western intelligence agencies estimated that the TWRA actually spent a majority of its funds arming fighters aligned with the Bosnian government.
  • A defector from al Qaeda called to testify before the United Nations, and who gave a deposition for lawyers representing the families of 9/11 victims, alleged that both Salman’s SHC and the TWRA provided essential support to al Qaeda in Bosnia, including to his 107-man combat unit. In a deposition related to the 9/11 case, he stated that the SHC “participated extensively in supporting al Qaida operations in Bosnia” and that the TWRA “financed, and otherwise supported” the terrorist group’s fighters. The SHC’s connection to terrorist groups has long been scrutinized by U.S. intelligence officials as well. The U.S. government’s Joint Task Force Guantanamo once included the Saudi High Commission on its list of suspected “terrorist and terrorist support entities.” The Defense Intelligence Agency also once accused the Saudi High Commission of shipping both aid and weapons to Mohamed Farrah Aidid, the al Qaeda-linked Somali warlord depicted as a villain in the movie Black Hawk Down. Somalia was subject to a United Nations arms embargo starting in January 1992. *** The board of trustees for the Prince Salman Youth Center, which Salman himself chairs, today includes Saleh Abdullah Kamel, a Saudi billionaire whose name showed up on a purported list of al Qaeda’s earliest supporters known as the “golden chain.” (The Wall Street Journal reported that Kamel “denies supporting terror.”) But as the United States sought to shut down Saudi charities with ties to terrorism in the aftermath of the 9/11 attacks, Kamel and Salman both condemned the effort as an anti-Islamic witch hunt.
  • In 1995, US aid worker William Jefferson is killed in Bosnia. One of the likely suspects, Ahmed Zuhair Handala, is linked to the SHC. He also is let go, despite evidence linking him to massacres of civilians in Bosnia. [Schindler, 2007, pp. 263-264] In 1997, a Croatian apartment building is bombed, and Handala and two other SHC employees are suspected of the bombing. They escape, but Handala will be captured after 9/11 and sent to Guantanamo prison. [Schindler, 2007, pp. 266] In 1997, SHC employee Saber Lahmar is arrested for plotting to blow up the US embassy in Saravejo. He is convicted, but pardoned and released by the Bosnian government two years later. He will be arrested again in 2002 for involvement in an al-Qaeda plot in Bosnia and sent to Guantanamo prison (see January 18, 2002). By 1996, NSA wiretaps reveal that Prince Salman is funding Islamic militants using charity fronts (Between 1994 and July 1996).
  • History Commons adds important details: By 1994, if not earlier, the NSA is collecting electronic intercepts of conversations between Saudi Arabian royal family members. Journalist Seymour Hersh will later write, “according to an official with knowledge of their contents, the intercepts show that the Saudi government, working through Prince Salman [bin Abdul Aziz], contributed millions to charities that, in turn, relayed the money to fundamentalists. ‘We knew that Salman was supporting all of the causes,’ the official told me.” By July 1996 or soon after, US intelligence “had more than enough raw intelligence to conclude… bin Laden [was] receiving money from prominent Saudis.” [Hersh, 2004, pp. 324, 329-330] One such alleged charity front linked to Salman is the Saudi High Commission in Bosnia (see 1996 and After). Prince Salman has long been the governor of Riyadh province. At the time, he is considered to be about fourth in line to be king of Saudi Arabia. His son Prince Ahmed bin Salman will later be accused of having connections with al-Qaeda leader Abu Zubaida (see Early April 2002). [PBS, 10/4/2004] It appears this surveillance of Saudi royals will come to an end in early 2001 (see (February-March 2001)).
  • Author Roland Jacquard will later claim that in 1996, al-Qaeda revives its militant network in Bosnia in the wake of the Bosnian war and uses the Saudi High Commission (SHC) as its main charity front to do so. [Jacquard, 2002, pp. 69] This charity was founded in 1993 by Saudi Prince Salman bin Abdul-Aziz and is so closely linked to and funded by the Saudi government that a US judge will later render it immune to a 9/11-related lawsuit after concluding that it is an organ of the Saudi government. [New York Law Journal, 9/28/2005] In 1994, British aid worker Paul Goodall is killed in Bosnia execution-style by multiple shots to the back of the head. A SHC employee, Abdul Hadi al-Gahtani, is arrested for the murder and admits the gun used was his, but the Bosnian government lets him go without a trial. Al-Gahtani will later be killed fighting with al-Qaeda and the Taliban in Afghanistan. [Schindler, 2007, pp. 143-144; Schindler is a professor at the U.S. Army War College] In 1995, the Bosnian Ministry of Finance raids SHC’s offices and discovers documents that show SHC is “clearly a front for radical and terrorism-related activities.” [Burr and Collins, 2006, pp. 145]
  • In November 2002, Prince Salman patronized a fundraising gala for three Saudi charities under investigation by Washington: the International Islamic Relief Organization, al-Haramain Foundation, and the World Assembly of Muslim Youth. Since 9/11, all three organizations have had branches shuttered or sanctioned over allegations of financially supporting terrorism. That same month, Salman cited his experience on the boards of charitable societies, asserting that “it is not the responsibility of the kingdom” if others exploit Saudi donations for terrorism. *** The new king has also embraced Saudi cleric Saleh al-Maghamsi, an Islamic supremacist who declared in 2012 that Osama bin Laden had more “sanctity and honor in the eyes of Allah,” simply for being a Muslim, than “Jews, Christians, Zoroastrians, apostates, and atheists,” whom he described by nature as “infidels.” That didn’t put an end to Salman’s ties to Maghamsi, however. The new Saudi king recently served as head of the supervisory board for a Medina research center directed by Maghamsi. A year after Maghamsi’s offensive comments, Salman sponsored and attended a large cultural festival organized by the preacher. Maghamsi also advises two of Salman’s sons ….
  • A 1996 CIA report mentions, “We continue to have evidence that even high ranking members of the collecting or monitoring agencies in Saudi Arabia, Kuwait, and Pakistan – such as the Saudi High Commission – are involved in illicit activities, including support for terrorists” (see January 1996). Jacquard claims that most of the leadership of the SHC supports bin Laden. The SHC, while participating in some legitimate charitable functions, uses its cover to ship illicit goods, drugs, and weapons in and out of Bosnia. In May 1997, a French military report concludes: ”(T)he Saudi High Commission, under cover of humanitarian aid, is helping to foster the lasting Islamization of Bosnia by acting on the youth of the country. The successful conclusion of this plan would provide Islamic fundamentalism with a perfectly positioned platform in Europe and would provide cover for members of the bin Laden organization.” [Jacquard, 2002, pp. 69-71] However, the US will take no action until shortly after 9/11, when it will lead a raid on the SHC’s Bosnia offices. Incriminating documents will be found, including information on how to counterfeit US State Department ID badges, and handwritten notes about meetings with bin Laden. Evidence of a planned attack using crop duster planes is found as well. [Schindler, 2007, pp. 129, 284]
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    So the U.S. invades Afghanistan and Iraq instead of Saudi Arabia? 
Paul Merrell

Pentagon scraps judges' Guantánamo move order; 9/11 case unfrozen | Miami Herald Miami Herald - 0 views

  • In an abrupt retreat Friday, the Pentagon revoked an order to war court judges to drop their other military duties and take up residence at this remote base until their cases are over.The 9/11 case judge swiftly responded by lifting a freeze on preparations for the terror trial of alleged mastermind Khalid Sheik Mohammed and four accused accomplices; the judge had imposed the freeze 48 hours earlier with a ruling that found the move-in order appeared to be an illegal bid to rush justice.Defense lawyers in the Sept. 11 and USS Cole death-penalty cases described the Jan. 7 relocation order as “unlawful influence,” a pressure play designed to exile military judges to the remote base in Cuba, cut short pretrial hearings and move straight to trial. Commanders meddling in the judicial function is a crime in the U.S. military. The about-face also averted testimony in the USS Cole bombing case by three three-star officers, the top lawyers of the Navy, Army and Air Force, on how the Pentagon order to move the judges took them by surprise — and its impact.
  • But it did not settle the conflict. Defense lawyers for Saudi Abd al Rahim al Nashiri, 50, argued that the way the order was adopted and withdrawn was illegal.They asked the judge, Air Force Col. Vance Spath, to dismiss the death-penalty charges against Nashiri, who is accused of orchestrating al-Qaida’s Oct. 12, 2000 suicide bombing off the coast of Yemen. Seventeen U.S. sailors were killed and dozens more wounded in the warship attack.Alternatively, Nashiri’s lawyers asked the judge to exclude from the case the architect of the move-in order — retired Marine Maj. Gen. Vaughn A. Ary, as well as his legal staff, who oversee the war court in the so-called Office of the Convening Authority. The new Secretary of Defense, Ash Carter, should replace them with officials untainted by the relocation order, said Nashiri’s civilian lawyer, Rick Kammen.
  • Ary “can’t be trusted” to act impartially, said Kammen, noting Ary’s role includes funding the defense and choosing the jury pool of U.S. military officers — Kammen called it driving “the death train” by handpicking “the people that he wants to kill Nashiri.”Prosecutors said, with the move-in order gone, the issue was over. They urged Spath to drop it. “We get that there is an appearance issue,” said the chief war crimes prosecutor, Army Brig. Gen. Mark Martins. “We all are guardians. The independence of the judiciary is at the heart of this.” Spath disagreed. Testimony earlier this week by Ary, the judge said, demonstrated there was “some evidence of unlawful influence.” Spath never dropped his other duties and never moved to this base. But hearing evidence this week disclosed a behind-the-scenes plan to remove Spath from the USS Cole case rather than relieve him of his other job as chief of the Air Force judiciary.Ary undertook this change “knowing it could remove a sitting trial judge,” said Spath, adding he would rule Monday morning on the defense motion to dismiss the charge
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  • The Sept. 11 case judge, Army Col. James L. Pohl, halted the proceedings this week, and said he wouldn’t resume them until the Pentagon lifted the move-in order. He said it appeared to constitute improper pressure on the judiciary to speed justice along. Friday afternoon, a USS Cole prosecutor, Navy Lt. Paul Morris, announced in court that Pohl had lifted his freeze.
Paul Merrell

Federal Chief Information Officers (CIO) Council Wins Rosemary Award - 0 views

  • Hillary Clinton E-Mail Controversy Illuminates Government-Wide Failure National Security Archive Lawsuit Established E-Mails as Records in 1993 CIO Council Repeats as Rosemary "Winner" for Doubling Down On "Lifetime Failure" Only White House Saves Its E-Mail Electronically, Agencies No Deadline Until 2016
  • The Federal Chief Information Officers (CIO) Council has won the infamous Rosemary Award for worst open government performance of 2014, according to the citation published today by the National Security Archive at www.nsarchive.org. The National Security Archive had hoped that awarding the 2010 Rosemary Award to the Federal Chief Information Officers Council for never addressing the government's "lifetime failure" of saving its e-mail electronically would serve as a government-wide wakeup call that saving e-mails was a priority. Fallout from the Hillary Clinton e-mail debacle shows, however, that rather than "waking up," the top officials have opted to hit the "snooze" button. The Archive established the not-so-coveted Rosemary Award in 2005, named after President Nixon's secretary, Rose Mary Woods, who testified she had erased 18-and-a-half minutes of a crucial Watergate tape — stretching, as she showed photographers, to answer the phone with her foot still on the transcription pedal. Bestowed annually to highlight the lowlights of government secrecy, the Rosemary Award has recognized a rogue's gallery of open government scofflaws, including the CIA, the Treasury Department, the Air Force, the FBI, the Justice Department, and Director of National Intelligence James Clapper.
  • Chief Information Officer of the United States Tony Scott was appointed to lead the Federal CIO Council on February 5, 2015, and his brief tenure has already seen more references in the news media to the importance of maintaining electronic government records, including e-mail, and the requirements of the Federal Records Act, than the past five years. Hopefully Mr. Scott, along with Office of Management & Budget Deputy Director for Management Ms. Beth Cobert will embrace the challenge of their Council being named a repeat Rosemary Award winner and use it as a baton to spur change rather than a cross to bear.
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  • Many on the Federal CIO Council could use some motivation, including the beleaguered State Department CIO, Steven Taylor. In office since April 3, 2013, Mr. Taylor is in charge of the Department's information resources and IT initiatives and services. He "is directly responsible for the Information Resource Management (IRM) Bureau's budget of $750 million, and oversees State's total IT/ knowledge management budget of approximately one billion dollars." Prior to his current position, Taylor served as Acting CIO from August 1, 2012, as the Department's Deputy Chief Information Officer (DCIO) and Chief Technology Officer of Operations from June 2011, and was the Program Director for the State Messaging and Archival Retrieval Toolset (SMART). While Hillary Clinton repeatedly claimed that because she sent her official e-mail to "government officials on their State or other .gov accounts ... the emails were immediately captured and preserved," a recent State Department Office of Inspector General report contradicts claims that DOS' e-mail archiving system, ironically named SMART, did so.
  • The report found that State Department "employees have not received adequate training or guidance on their responsibilities for using those systems to preserve 'record emails.'" In 2011, while Taylor was State's Chief Technology Officer of Operations, State Department employees only created 61,156 record e-mails out of more than a billion e-mails sent. In other words, roughly .006% of DOS e-mails were captured electronically. And in 2013, while Taylor was State's CIO, a paltry seven e-mails were preserved from the Office of the Secretary, compared to the 4,922 preserved by the Lagos Consulate in Nigeria. Even though the report notes that its assessments "do not apply to the system used by the Department's high-level principals, the Secretary, the Deputy Secretaries, the Under Secretaries, and their immediate staffs, which maintain separate systems," the State Department has not provided any estimation of the number of Clinton's e-mails that were preserved by recipients through the Department's anachronistic "print and file" system, or any other procedure.
  • The unfortunate silver lining of Hillary Clinton inappropriately appropriating public records as her own is that she likely preserved her records much more comprehensively than her State Department colleagues, most of whose e-mails have probably been lost under Taylor's IT leadership. 2008 reports by CREW, right, and the GAO, left, highlighted problems preserving e-mails. Click to enlarge. The bigger issue is that Federal IT gurus have known about this problem for years, and the State Department is not alone in not having done anything to fix it. A 2008 survey by Citizens for Responsibility and Ethics in Washington (CREW) and OpenTheGovernment.org did not find a single federal agency policy that mandates an electronic record keeping system agency-wide. Congressional testimony in 2008 by the Government Accountability Office indicted the standard "print and file" approach by pointing out:
  • 2011- the Justice Department (for doing more than any other agency to eviscerate President Obama's Day One transparency pledge through pit-bull whistleblower prosecutions, recycled secrecy arguments in court cases, retrograde FOIA regulations, and mixed FOIA responsiveness) 2010 - the Federal Chief Information Officers' Council (for "lifetime failure" to address the crisis in government e-mail preservation) 2009 - the FBI (for having a record-setting rate of "no records" responses to FOIA requests) 2008 - the Treasury Department (for shredding FOIA requests and delaying responses for decades) 2007 - the Air Force (for disappearing its FOIA requests and having "failed miserably" to meet its FOIA obligations, according to a federal court ruling) 2006 - the Central Intelligence Agency (for the biggest one-year drop-off in responsiveness to FOIA requests yet recorded).
  • Troublingly, current Office of Management and Budget guidance does not require federal agencies to manage "all email records in an electronic format" until December 31, 2016. The only part of the federal government that seems to be facing up to the e-mail preservation challenge with any kind of "best practice" is the White House, where the Obama administration installed on day one an e-mail archiving system that preserves and manages even the President's own Blackberry messages. The National Security Archive brought the original White House e-mail lawsuit against President Reagan in early 1989, and continued the litigation against Presidents George H.W. Bush and Bill Clinton, until court orders compelled the White House to install the "ARMS" system to archive e-mail. The Archive sued the George W. Bush administration in 2007 after discovering that the Bush White House had junked the Clinton system without replacing its systematic archiving functions. CREW subsequently joined this suit and with the Archive negotiated a settlement with the Obama administration that included the recovery of as many as 22 million e-mails that were previously missing or misfiled.
  • s a result of two decades of the Archive's White House e-mail litigation, several hundred thousand e-mails survive from the Reagan White House, nearly a half million from the George H.W. Bush White House, 32 million from the Clinton White House, and an estimated 220 million from the George W. Bush White House. Previous recipients of the Rosemary Award include: 2013 - Director of National Intelligence James Clapper (for his "No, sir" lie to Senator Ron Wyden's question: "Does the NSA collect any type of data at all on millions or hundreds of millions of Americans?") 2012 - the Justice Department (in a repeat performance, for failing to update FOIA regulations to comply with the law, undermining congressional intent, and hyping its open government statistics)
  • Rogue Band of Federal E-mail Users and Abusers Compounds Systemic Problems Former Secretary of State Hillary Clinton and other federal officials who skirt or even violate federal laws designed to preserve electronic federal records compound e-mail management problems. Top government officials who use personal e-mail for official business include: Clinton; former U.S. Ambassador to Kenya Scott Gration; chairman of the U.S. Chemical Safety Board Rafael Moure-Eraso; and former Secretary of State Colin Powell, who told ABC's This Week "I don't have any to turn over. I did not keep a cache of them. I did not print them off. I do not have thousands of pages somewhere in my personal files." Others who did not properly save electronic federal records include Environmental Protection Agency former administrator Lisa Jackson who used the pseudonym Richard Windsor to receive email; current EPA administrator Gina McCarthy, who improperly deleted thousands of text messages (which also are federal records) from her official agency cell phone; and former Internal Revenue Service official Lois Lerner, whose emails regarding Obama's political opponents "went missing or became destroyed."
  • "agencies recognize that devoting significant resources to creating paper records from electronic sources is not a viable long-term strategy;" yet GAO concluded even the "print and file" system was failing to capture historic records "for about half of the senior officials."
  • The destruction of other federal records was even more blatant. Jose Rodriguez, the former CIA official in charge of the agency's defunct torture program ordered the destruction of key videos documenting it in 2005, claiming that "the heat from destroying [the torture videos] is nothing compared to what it would be if the tapes ever got into the public domain;" Admiral William McRaven, ordered the immediate destruction of any emails about Operation Neptune Spear, including any photos of the death of Osama bin Laden ("destroy them immediately"), telling subordinates that any photos should have already been turned over to the CIA — presumably so they could be placed in operational files out of reach of the FOIA. These rogues make it harder — if not impossible — for agencies to streamline their records management, and for FOIA requesters and others to obtain official records, especially those not exchanged with other government employees. The US National Archives currently trusts agencies to determine and preserve e-mails which agencies have "deemed appropriate for preservation" on their own, often by employing a "print and file" physical archiving process for digital records. Any future reforms to e-mail management must address the problems of outdated preservation technology, Federal Records Act violators, and the scary fact that only one per cent of government e-mail addresses are saved digitally by the National Archive's recently-initiated "Capstone" program.
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    Complete with photos, names, titles, of the 41 federal department and independent agency CIOs. The March 2015 Insopector General report linked from the article belies Hillary Clinton's claim that all emails she sent to State Department staff had been preserved by the Department.   
Paul Merrell

18 Signs That The Global Economic Crisis Is Accelerating As We Enter The Last Half Of 2014 - 0 views

  • #1 The Bank for International Settlements has issued a new report which warns that "dangerous new asset bubbles" are forming which could potentially lead to another major financial crisis.  Do the central bankers know something that we don't, or are they just trying to place the blame on someone else for the giant mess that they have created? #2 Argentina has missed a $539 million debt payment and is on the verge of its second major debt default in 13 years. #3 Bulgaria is desperately trying to calm down a massive run on the banks that threatens of spiral out of control. #4 Last month, household loans in the eurozone declined at the fastest rate ever recorded.  Why are European banks holding on to their money so tightly right now? #5 The number of unemployed jobseekers in France has just soared to another brand new record high.
  • #6 Economies all over Europe are either showing no growth or are shrinking.  Just check out what a recent Forbes article had to say about the matter... Italy’s economy shrank by 0.1% in the first three months of 2014, matching the average of the three previous quarters. After expanding 0.6% in Q2 2013, France recorded zero growth. Portugal shrank 0.7%, following positive numbers in the preceding nine months. While figures weren’t available for Greece and Ireland in Q1, neither country is showing progress. Greek GDP dropped 2.5% in the final three months of last year, and Ireland limped ahead at 0.2%. #7 A few days ago it was reported that consumer prices in Japan are rising at the fastest pace in 32 years.
  • #8 Household expenditures in Japan are down 8 percent compared to one year ago. #9 U.S. companies are drowning in massive amounts of debt, but the corporate debt bubble in China is so bad that the amount of corporate debt in China has actually now surpassed the amount of corporate debt in the United States. #10 One Chinese auditor is warning that up to 80 billion dollars worth of loans in China are backed by falsified gold transactions.  What will that do to the price of gold and the stability of Chinese financial markets as that mess unwinds? #11 The unemployment rate in Greece is currently sitting at 26.7 percent and the youth unemployment rate is 56.8 percent.
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  • #12 67.5 percent of the people that are unemployed in Greece have been unemployed for over a year. #13 The unemployment rate in the eurozone as a whole is 11.8 percent - just a little bit shy of the all-time record of 12.0 percent. #14 The European Central Bank is so desperate to get money moving through the system that it has actually introduced negative interest rates. #15 The IMF is projecting that there is a 25 percent chance that the eurozone will slip into deflation by the end of next year. #16 The World Bank is warning that "now is the time to prepare" for the next crisis. #17 The economic conflict between the United States and Russia continues to deepen.  This has caused Russia to make a series of moves away from the U.S. dollar and toward other major currencies.  This will have serious ramifications for the global financial system as time rolls along.
  • #18 Of course the U.S. economy is struggling right now as well.  It shrank at a 2.9 percent annual rate during the first quarter of 2014, which was much worse than anyone had anticipated.
Paul Merrell

CFPB Determined to Regulate Billion Dollar Payday Loan Industry - Top US & World News | Susanne Posel - 0 views

  • The Consumer Financial Protection Bureau (CFPB) has a new set of rules aimed at preventing payday loan operations from targeting low-income borrowers who will be buried by high fees and rising debt loads. Payday loans are traditionally a loan of $500 or less wherein the borrower “provides a personal check dated on their next payday for the full balance or give the lender permission to debit their bank accounts. The total includes charges often ranging from $15 to $30 per $100 borrowed. Interest-only payments, sometimes referred to as rollovers, are common.” Using these lenders to make ends meet, borrowers are taken advantage of which has traditionally been a state regulatory issue. However now the federal government will be stepping in to curb this extortive multibillion dollar industry. Fees from payday loans can quickly accumulate, causing some borrowers to “lose their bank accounts and cars, or even risk prison time”.
  • Richard Corday, director of the CFPB, said: “Extending credit to people in a way that sets them up to fail and ensnares considerable numbers of them in extended debt traps, is simply not responsible lending.” These new rules cover payday loans, vehicle loans, loans using a car as collateral and various other forms of high-cost lending. Enders will be responsible for making sure debtors can repay the loan in full on time before extending the loan by checking their income, borrowing history, previous financial obligations and any other indicators that the borrower would most likely default or roll over the loan. • A 60 day respite between loans • Lenders must provide affordable repayment options • Loans cannot exceed $500 • Loans cannot have multiple finance charges • Loans cannot use a vehicle as collateral Regulations on interest rates and repayments as a share of income include mandatory capping off to prevent run-a-way fees.
  • Back in February, the CFPB warned about the payday loan industry which is largely unregulated and functions outside of proper oversight and accountability. The CFPB estimates that the $46 billion payday loan or cash advance industry has no oversight, refuses to give full disclosures of interest and fees involved, and takes an annual percentage of an excess of 300% against borrowers. The Consumer Federation of America (CFA) counts 32 states in the US that “permit payday loans at triple-digit interest rates, or with no rate cap at all.” Shockingly 80% of payday loans are rolled over within 14 days while an estimated 50% of these loans are “in a sequence at least 10 loans long.”
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    The first sentence if false; no rules have been adopted or even been published. In fact, these aren't even formal rule proposals or advance notice of public rulemaking, all of which must be poublished in the Federal Register, per the Administrative Procedures Act.   The Bureau is still in the information gathering stage.
Paul Merrell

Distrust of US surveillance threatens data deal | TheHill - 0 views

  • European privacy regulators are putting U.S. surveillance practices under the microscope, this time with a crucial transatlantic data deal hanging in the balance.Legal and privacy advocates say European nations are poised to strike down the deal if they decide the U.S. hasn't done enough to reform its spying programs.The new test comes after the European Commission and the Commerce Department — after months of tense negotiations — reached a deal this week permitting Facebook, Google and thousands of other companies to continue legally handling Europeans’ personal data.ADVERTISEMENTCritics though have long warned that unless the U.S. overhauls its privacy and national security laws, there is no legal framework that can stand up in European court, where privacy is considered a fundamental right under the EU Charter.A working group of 28 EU nations’ data protection authorities — domestic entities separate from the Commission that will be in charge of enforcing the new agreement — may now cast the deciding vote.The group is spending the next few months picking through the so-called Privacy Shield agreement to determine if it adequately protects the personal data of European citizens.
  • “The Commission has said, ‘We’re satisfied. We believe them. We believe the U.S. has substantially changed its practices,’ and they are no longer going off the [Edward] Snowden revelations in the media,” said Susan Foster, a privacy attorney at Mintz Levin who works in both the EU and the U.S.“Whether the working group will go along with it is another question.”The privacy advocate whose complaint against Facebook brought down the Privacy Shield’s 15-year-old predecessor agreement is already questioning the new deal’s validity.“With all due respect ... a couple of letters by the outgoing Obama administration is by no means a legal basis to guarantee the fundamental rights of 500 million European users in the long run, when there is explicit U.S. law allowing mass surveillance,” Max Schrems of Austria said in a statement Tuesday.The United States has been fighting against the perception that it tramples on civil liberties after ex-National Security Agency contractor Edward Snowden revealed the breadth of the agency’s snooping.One sticking point in the Privacy Shield negotiations was over the scope of an exception allowing surveillance for national security purposes.
  • In announcing the deal, Commission officials insisted that the U.S. had provided “detailed written assurances” that surveillance of Europeans’ data by intelligence agencies would be subject to appropriate limitations.“The U.S. has clarified that they do not carry out indiscriminate surveillance of Europeans,” Andrus Ansip, Vice President for the Digital Single Market on the European Commission, said Tuesday.The U.S. has also agreed to create an office in the State Department, to address complaints from EU citizens who feel their data has been inappropriately accessed by intelligence authorities.Complicating the working group’s approval of the deal is the hodgepodge of competing regulators in Europe. Each nation has an agency in charge of its own country’s regulation. Some countries — such as Germany — are seen as tougher on privacy than others, like France or the U.K.While some countries consider U.S. privacy protections to be satisfactory, in others they are seen as woefully inadequate.
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  • Defenders of U.S. intelligence practices often point to France and the U.K., arguing they are equally intrusive with their citizens' data.A recent public report “pretty clearly documented that the protections are patchy, vary hugely and are nonexistent in some of the countries,” Foster noted.Privacy advocates dismiss those arguments.“You cannot pick the worst member state, like the U.K., and claim you are ‘equivalent’ to that,” Schrems said Tuesday. “First, this is not a price [sic] you want to win, secondly you have to meet the standards of the European Court of Justice, EU law and the EU Charter of Fundamental Rights — not the standard of the worst member state.”The U.S. has made significant reforms to federal spying powers under the Obama administration.The Privacy and Civil Liberties Oversight Board — a small bipartisan watchdog — on Friday said the government has begun addressing each of the nearly two-dozen recommendations it made following Snowden's revelations.“[I]mportant measures have been taken to enhance the protection of Americans’ privacy and civil liberties and to strengthen the transparency of the government’s surveillance efforts, without jeopardizing our counterterrorism efforts,” the five-member board said.
  • But whether European countries believe those changes are sufficient to sign off on the Privacy Shield is uncertain. Each of the EU’s 28 member states must approve the deal before it can be finalized.“A lot of this is going to come down to whether the data protection authorities are persuaded by the U.S.’s portrayal of the cumulative protections given to European citizens and the cumulative carving back on the NSA surveillance programs,” Foster said.If the European working group is not satisfied with the assurances from the Commerce Department, the consequences could be dire. Businesses fear a chilling of transatlantic trade, valued at $1 trillion in 2014.The most likely outcome, experts say, would be a patchwork of country-to-country regulations that would make it extremely expensive for companies to comply.Legislative changes in the U.S. seem unlikely. Congress is close to passing a privacy law considered crucial to getting seeing the Privacy Shield approved. But the bill — which gives EU citizens the right to sue in U.S. courts over the misuse of personal data — has sparked controversy on Capitol Hill.Some lawmakers are expressing frustration that the EU has used the threat of enforcement action against U.S. companies to push Congress to make more concessions.“It’s been hard enough to get the Judicial Redress Act passed — if they’re going to make more demands on Congress, there won’t be a lot of willing listeners here,” Sen. Chris Murphy (D-Conn.) told The Hill on Thursday.
Paul Merrell

The Arab Spring: Made in the USA | Global Research - Centre for Research on Globalization - 0 views

  • Arabesque$: Enquête sur le rôle des États-Unis dans les révoltes arabes (Investigation into the US Role in the Arab Uprisings) is an update of Ahmed Bensaada’s 2011 book L’Arabesque Américaine. It concerns the US government role in instigating, funding and coordinating the Arab Spring “revolutions.” Most of this history has been carefully suppressed by the western media.The new book devotes much more attention to the personalities leading the 2011 uprisings. Some openly admitted to receiving CIA funding. Others had no idea because it was deliberately concealed from them. A few (in Egypt and Syria) were officially charged with espionage. In Egypt, seven sought refuge in the US embassy in Cairo and had to be evacuated by the State Department.
  • According to Bensaada, the MENA Arab Spring revolutions have four unique features in common: None were spontaneous – all required careful and lengthy (5+ years) planning, by the State Department, CIA pass through foundations, George Soros, and the pro-Israel lobby.1 All focused exclusively on removing reviled despots without replacing the autocratic power structure that kept them in power. No Arab Spring protests made any reference whatsoever to powerful anti-US sentiment over Palestine and Iraq. All the instigators of Arab Spring uprisings were middle class, well educated youth who mysteriously vanished after 2011.
  • Follow the Money Relying mainly on Wikileaks cables and the websites of key CIA pass through foundations (which he reproduces in the appendix), Bensaada methodically lists every State Department conference and workshop the Arab Spring heroes attended, the dollar amounts spent on them by the State Department and key “democracy” promoting foundations3, the specific involvement of Google, Facebook, Twitter and Obama’s 2008 Internet campaign team in training Arab Spring cyperactivists in encryption technologies and social media skills, US embassy visits, and direct encounters with Hillary Clinton,  Condoleezza Rice, John McCain, Barack Obama and Serbian trainers from CANVAS (the CIA-backed organization that overthrew Slobodan Milosevic in 2000). Bensaada focuses most heavily on the Tahrir Square uprising in Egypt. TheWashington Post has estimated approximately 10,000 Egyptians took part in NED and USAID training in social media and nonviolent organizing techniques. For me the most astonishing information in this chapter concerned the role of an Egyptian exile (a former Egyptian policeman named Omar Afifi Suleiman) in coordinating the Tahrir Square protests from his office in Washington DC. According to Wikileaks, NED paid Suleiman a yearly stipend of $200,000+ between 2008-2011.
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  • When Nonviolence Fails Arabesques$ devotes far more attention to Libya, Syria and Yemen than Bensaada’s first book. In the section on Libya, Bensaada zeroes in on eleven key US assets who engineered the overthrow of Gaddafi. Some participated in the same State Department trainings as the Middle East opposition activists and instigated nonviolent Facebook and Twitter protests to coincide with the 2011 uprisings in Tunisian and Egypt. Others, in exile, underwent guerrilla training sponsored by the CIA, Mossad, Chad and Saudi Arabia. A few months after Gaddafi’s assassination, some of these same militants would lead Islamic militias attempting to overthrow Assad in Syria. Between 2005 and 2010, the State Department funneled $12 million to opposition groups opposed to Assad. The US also financed Syrian exiles in Britain to start an anti-government cable TV channel they beamed into Syria. In the section on Syria, Bensaada focuses on a handful of Syrian opposition activists who received free US training in cyberactivism and nonviolent resistance beginning in 2006. One, Ausama Monajed, is featured in the 2011 film How to Start a Revolution about a visit with Gene Sharp in 2006. Monajed and others worked closely with the US embassy, funded by the Middle East Partnership Initiative (MEPI). This is a State Department program that operates in countries (such as Libya and Syria) where USAID is banned. In February 2011, these groups posted a call on Twitter and Facebook for a Day of Rage. Nothing happened. When Sharpian techniques failed to produce a sizable nonviolent uprising, as in Libya, they and their allies (Saudi Arabia, Turkey, Qatar and Jordan) were all set up to introduce Islamic mercenaries (many directly from Libya) to declare war on the Assad regime.
  • Dr. Bramhall is a retired American psychiatrist and political refugee in New Zealand. She has published a free, downloadable non-fiction ebook 21st Century Revolution.
  •  
    Alas, the book is apparently available only in French. 
Paul Merrell

A Quarter Of American Adults Can't Pay All Their Monthly Bills; 44% Have Less Than $400 In Cash - 0 views

  • There was some good news and some not so good news in the Fed's latest annual Report on the Economic Well-Being of U.S. Households. First the good news. The report, based on the Board's fourth annual Survey of Household Economics and Decisionmaking conducted in October 2016, presents a "picture of improving financial well-being among Americans", at least according to the report (read on to see if this is merited). Overall, 70% of the more than 6,600 respondents said they were either "living comfortably" or "doing okay," up 1% from 2015 and up 8% from the first survey results in 2013.
  • Now, the not so good news. Nearly eight years into an economic recovery, nearly half of Americans didn’t have enough cash available to cover a $400 emergency. Specifically, the survey found that, in line with what the Fed had disclosed in previous years, 44% of respondents said they wouldn’t be able to cover an unexpected $400 expense like a car repair or medical bill, or would have to borrow money or sell something to meet it. Troubling as this statistic remains, the overall share of adults who would struggle to come up with $400 in a pinch has declined by 2% from the last survey conducted in 2015, and down 6% since 2013. Of the group that could not pay in cash, 45% said they would go further in debt and use a credit card to pay off the expense over time. while a quarter would borrow from friends of family, and another 27% just couldn’t pay the expense. Others would turn to selling items or using a payday loan.
  • The breakdown was largely by education attainment: 79% of those with at least a bachelor’s degree said they would still be able to pay all of their other bills in full if hit with a $400 charge. Just 52% of those with no more than a high school diploma said the same. Just as concerning were other findings from the study: just under one-fourth of adults, or 23%, are not able to pay all of their current month’s bills in full while 25% reported skipping medical treatments due to cost in the prior year. Additionally, 28% of adults who haven’t retired yet reported to being grossly unprepared, indicating they had no retirement savings or pension whatsoever.
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  • The median out-of-pocket cost for an unexpected, major medical expense was $1,000, and 42% of those with such an expense in the past year either had debt relating to that expense or unpaid balances. The Fed reported that 24 million adults are in debt from medical expenses incurred over the previous year.  As a result, many respondents went without some type of care - dental care in particular - because they could not afford it, though the 25% who reported such a situation was down from 27% in 2015.
  • The biggest differentiator appears to be education: the Fed reported that 82% of adults with a bachelor’s degree or more in education said last year they were “living comfortably” or “doing okay,” up from 80% the year before, as well as 69% of those with some college or an associate degree, up from 66%. Furthermore, 79% of those with at least a bachelor’s degree said they would still be able to pay all of their other bills in full if hit with a $400 charge. Just 52% of those with no more than a high school diploma said the same. Americans’ sense of economic health also varied among racial and ethnic groups. Of the respondents with no more than a high-school diploma, a greater portion of non-Hispanic whites—20.5%-- reported being worse off than a year before than did non-Hispanic blacks, at 18.6%, or Hispanics, at 20.2%.
Paul Merrell

JPMorgan to pay record $920 million to resolve trading probes - 1 views

  • JPMorgan Chase is set to pay a record $920 million to resolve probes from three federal agencies over its role in the manipulation of global markets for metals and Treasurys.The figure was released Tuesday morning by the Commodity Futures Trading Commission in a statement from Commissioner Dan Berkovitz. Last week, news reports indicated that the New York-based bank was nearing a settlement of almost $1 billion.The penalty is a record for spoofing, which is when sophisticated traders flood markets with orders that they have no intention of actually executing. The practice was banned after the 2008 financial crisis and regulators have made it a priority to stamp out.Of the $920 million, $436.4 million is a criminal monetary penalty, $172 million is a “criminal disgorgement amount” and $311.7 million is for victim compensation, according to the Department of Justice.
  • JPMorgan Chase is set to pay a record $920 million to resolve probes from three federal agencies over its role in the manipulation of global markets for metals and Treasurys.The figure was released Tuesday morning by the Commodity Futures Trading Commission in a statement from Commissioner Dan Berkovitz. Last week, news reports indicated that the New York-based bank was nearing a settlement of almost $1 billion.The penalty is a record for spoofing, which is when sophisticated traders flood markets with orders that they have no intention of actually executing. The practice was banned after the 2008 financial crisis and regulators have made it a priority to stamp out.Of the $920 million, $436.4 million is a criminal monetary penalty, $172 million is a “criminal disgorgement amount” and $311.7 million is for victim compensation, according to the Department of Justice.
  • The bank, the biggest U.S. lender by assets, has entered into a deferred prosecution agreement with the DOJ that will expire in three years if the firm satisfies its obligations under the deal. 
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  • In his statement, the CFTC’s Berkovitz said he opposed the ruling from his agency that JPMorgan’s actions “should not result in any disqualifications under the ‘bad actor’ provisions of the securities laws.” He is apparently referring to the fact that the settlement isn’t expected to result in business restrictions on other areas of the firm.
  • The bank also has quietly settled a long-running lawsuit that accused the bank of manipulating precious metals markets with “spoofing” trades. The lawsuit was filed in 2015 by Daniel Shak, the hedge fund operator and high-stakes poker player, and two metals traders, Mark Grumet and Thomas Wacker.The three plaintiffs had accused JPMorgan of manipulating the silver futures market from 2010 through 2011 through spoofing trades. Details of the settlement were not disclosed in court filings.
  • In September 2019, federal prosecutors charged Nowak and two other former JPMorgan precious metals traders, Gregg Smith and Christopher Jordan, with participating in a racketeering conspiracy in connection with a multiyear scheme to manipulate the markets and defraud customers, as well as other crimes related to alleged spoofing.A superseding indictment was filed in the criminal case two months later, adding another defendant, ex-JPMorgan executive Jeffrey Ruffo, who had worked in hedge fund sales on the firm’s precious metals desk.All four defendants have pleaded not guilty. Trial in that case is scheduled to begin next April in Chicago federal court.
  • The CFTC noted in their press release that the agency continues to pursue civil litigation against Nowak and  Smith, for spoofing and attempted price manipulation.Although Shak’s lawsuit has been settled, JPMorgan still faces a class action lawsuit related to alleged spoofing in the precious metals markets.
Paul Merrell

Federal Judge Finds National Security Letters Unconstitutional, Bans Them | Threat Level | Wired.com - 0 views

  • Ultra-secret national security letters that come with a gag order on the recipient are an unconstitutional impingement on free speech, a federal judge in California ruled in a decision released Friday. U.S. District Judge Susan Illston ordered the government to stop issuing so-called NSLs across the board, in a stunning defeat for the Obama administration’s surveillance practices. She also ordered the government to cease enforcing the gag provision in any other cases. However, she stayed her order for 90 days to give the government a chance to appeal to the Ninth Circuit Court of Appeals.
  • “We are very pleased that the Court recognized the fatal constitutional shortcomings of the NSL statute,” said Matt Zimmerman, senior staff attorney for the Electronic Frontier Foundation, which filed a challenge to NSLs on behalf of an unknown telecom that received an NSL in 2011. “The government’s gags have truncated the public debate on these controversial surveillance tools. Our client looks forward to the day when it can publicly discuss its experience.” The telecommunications company received the ultra-secret demand letter in 2011 from the FBI seeking information about a customer or customers. The company took the extraordinary and rare step of challenging the underlying authority of the National Security Letter, as well as the legitimacy of the gag order that came with it.
  • Illston found that although the government made a strong argument for prohibiting the recipients of NSLs from disclosing to the target of an investigation or the public the specific information being sought by an NSL, the government did not provide compelling argument that the mere fact of disclosing that an NSL was received harmed national security interests. A blanket prohibition on disclosure, she found, was overly broad and “creates too large a danger that speech is being unnecessarily restricted.” She noted that 97 percent of the more than 200,000 NSLs that have been issued by the government were issued with nondisclosure orders.
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  • Both challenges are allowed under a federal law that governs NSLs, a power greatly expanded under the Patriot Act that allows the government to get detailed information on Americans’ finances and communications without oversight from a judge. The FBI has issued hundreds of thousands of NSLs over the years and has been reprimanded for abusing them — though almost none of the requests have been challenged by the recipients. After the telecom challenged the NSL, the Justice Department took its own extraordinary measure and sued the company, arguing in court documents that the company was violating the law by challenging its authority. The move stunned EFF at the time.
  • NSLs are written demands from the FBI that compel internet service providers, credit companies, financial institutions and others to hand over confidential records about their customers, such as subscriber information, phone numbers and e-mail addresses, websites visited and more. NSLs are a powerful tool because they do not require court approval, and they come with a built-in gag order, preventing recipients from disclosing to anyone that they have even received an NSL. An FBI agent looking into a possible anti-terrorism case can self-issue an NSL to a credit bureau, ISP or phone company with only the sign-off of the Special Agent in Charge of their office. The FBI has to merely assert that the information is “relevant” to an investigation into international terrorism or clandestine intelligence activities.
Paul Merrell

The International Criminal Court (ICC) Will Not Prosecute Tony Blair, Others Are Planning To | Global Research - Centre for Research on Globalization - 0 views

  • Whilst any British or US soldier responsible for the litany of appalling crimes committed in Iraq should be pursued relentlessly – which has broadly been less than the case to date – the ultimate responsibility for the whole tragic disaster for which both countries’ leaders and military brass will surely be haunted throughout history, lies with those at the political top. Their blatant mistruths led to the invasion and its bloody, inhuman, ignorant, culturally clueless, unending aftermath. Of the ICC decision, Reg Keys, who stood against Blair in the 2005 election and whose twenty year old son, Tom was killed in Iraq said: “It makes me very angry. They don’t call him Teflon Tony for nothing.” However, Anthony Charles Linton Blair, QC, will still have to spend a lot of time looking over his shoulder. In what the Daily Mail describes as: “a dramatic attempt to impeach Tony Blair for misleading Parliament over the Iraq war”, a cross party group of MPs are building support: “for an attempted prosecution of the former Prime Minister”, after Wednesday’s publication of the Inquiry’s findings. (2) The MPs are using an ancient parliamentary power, unused since 1806 to bring Blair to trial in Parliament. The groups charge is that: “he should be impeached over allegations (that) he breached his constitutional duties as Premier.” His pivotal claims regarding Iraq’s weapons of mass destruction – which, he had asserted, could reach the West “in 45 minutes” had been “contradicted by his own intelligence (agencies) assessments”, points out the Mail. A parliamentary source told the Mail: “Impeachment is on our minds, but we will need to digest the Report.
  • There is definitely a feeling that Blair must be properly held to account for his actions in the run up to what was a disastrous war.” Not so much a war but the near annihilation of a sovereign nation without even the minimal wherewithal of self defense, many will reflect. If the impeachment attempt is approved by MPs, the defendant is delivered the top parliamentary ceremonial official, known as Black Rod, ahead of a trial. “A simple majority is required to convict, at which point a sentence can be passed, which could, in theory, involve Mr. Blair being sent to prison.” The MPs are not alone in their potential plans. Whatever the Chilcot Report may lack in judgmental findings, it will deliver to relevant legal experts a wealth of potential for civil litigation against all responsible for crimes against sovereignty, humanity, the peace – and what many will argue has been genocide. The Chilcot Inquiry is 2.6 million words. Many figures show that between the embargo, the 1991 desert slaughter, the silent holocaust of the residual deaths from the Depleted Uranium weapons (radioactive residue 4.5 million years) and the 2003 invasion – massacres ongoing -that may represent less than one word for every Iraqi death.
Paul Merrell

Netanyahu scandals reflect corruption at the heart of Israeli society - Mondoweiss - 0 views

  •       Israeli prime minister Benjamin Netanyahu is in danger of being brought down, possibly soon, over what initially appears to be little more than an imprudent taste for Cuban cigars and pink champagne. In truth, however, the allegations ensnaring Netanyahu reveal far more than his personal flaws or an infatuation with the high life. They shine a rare light on the corrupt nexus between Israel’s business, political and media worlds, compounded by the perverse influence of overseas Jewish money. Of the two police investigations Netanyahu faces (there are more in the wings), the one known as Case 1000, concerning gifts from businessmen worth hundreds of thousands of dollars, is most likely to lead to his downfall. But it is the second investigation, Case 2000, and the still-murky relationship between the two cases, that more fully exposes the rot at the heart of Israel’s political system. This latter case hinges on a tape recording in which Netanyahu plots with an Israeli newspaper tycoon to rig media coverage in his favor. Leads from both cases suggest that Netanyahu may have been further meddling, together with his billionaire friends, in the shadowy world of international espionage.
  • Netanyahu’s appetite for a free lunch has been common knowledge in Israel since his first term as prime minister in the late 1990s. Then, he was twice investigated for fraud, though controversially charges were not brought in either case. Police discovered along the way that he and his wife, Sara, had horded many of the gifts he received during state visits. More than 100 were never recovered. The clarifications that were issued more than 15 years ago, as a result of those investigations, make it hard for Netanyahu to claim now that he did not understand the rules. According to justice ministry advice in 2001, government and state officials cannot keep gifts worth more than $100 without risking violating Israeli law. The gifts Netanyahu received from one of the Israeli businessmen involved in Case 1000, Hollywood film producer Arnon Milchan, amounted to as much as $180,000. Netanyahu has argued that these presents, ranging from cigars to jewelry, were expressions of a close friendship rather than bribes to him in his capacity as prime minister. The problem, however, is that Netanyahu appears to have reciprocated by using his position as head of the Israeli government to lobby John Kerry, the then U.S. secretary of state, to gain Milchan a 10-year U.S. residency visa. He may have done more.
  • Also being investigated are his family’s ties to a friend of Milchan’s, Australian billionaire James Packer, who made his fortune in the media and gambling industries. Packer has similarly lavished gifts on the Netanyahu family, especially Yair, Netanyahu’s eldest son. At the same time, Packer, now a neighbor of the Netanyahus in the coastal town of Caesarea, has been seeking permanent residency and the enormous benefits that would accrue with tax status in Israel. As a non-Jew, Packer should have no hope of being awarded residency. There are suspicions that Netanyahu may have been trying to pull strings on the Australian’s behalf. Many of these gifts were apparently not given freely. The Netanyahus asked for them. Indicating that Netanyahu knew there might be legal concerns, he used code words – “leaves” for cigars and “pinks” for champagne – to disguise his orders to Milchan. Police are reported to be confident, after questioning Netanyahu three times, that they have enough evidence to indict him. If they do, Netanyahu will be under heavy pressure to resign.
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  • Yossi Cohen was appointed head of the Mossad a year ago, after a government vetting committee accepted that he had no personal ties to Netanyahu. But Cohen forgot to mention that he is extremely close to Netanyahu’s high-flying friends – connections that are now under investigation. Milchan set up a global security firm in 2008 called Blue Sky International, stuffed with Israeli security veterans. Packer soon became a partner. They developed close ties to Cohen, first while he was a senior official at the Mossad and later when he headed Israel’s national security council. Before Cohen was appointed head of Mossad in December 2015, the pair had hoped to recruit him to their cyber-security operations. Cohen received several gifts from Packer, in violation of Israeli government rules, including a stay at one of his luxury hotels. A source speaking to Haaretz said Blue Sky had “more than [a] direct line” to Netanyahu. They “would pull him out from anywhere, at any time, on any occasion.” According to Haaretz’s military analyst, Amir Oren, the new disclosures raise serious questions about whether Milchan and Packer twisted Netanyahu’s arm to parachute Cohen into the post over the favored candidate. In return, Packer may have been hoping that Cohen would authorise exceptional Israeli residency for him, classifying him as a security asset.
  • From Hollywood to Mossad Cases 1000 and 2000 share at least one figure in common. Milchan gave Netanyahu extravagant gifts over many years, but he is also reported to have acted as go-between, bringing arch-enemies Netanyahu and Mozes together. Milchan has his own financial stake in the media, in his case a holding in the Channel 10 TV station. In addition, Milchan introduced Netanyahu to sympathetic businessmen, including his friend Packer, to discuss taking the ailing Yedioth media group off Mozes’ hands. Only last October he arranged for media mogul Rupert Murdoch’s son, Lachlan, to fly to Israel for one night for a secret meeting with Netanyahu. Milchan is undoubtedly at the centre of the shadowy world of power and finance that corrupts public life in Israel. Not only is Milchan a highly influential Hollywood figure, having produced more than 100 films, but he has admitted that he is a former Mossad agent. He used his Hollywood connections to help make arms deals and secure parts for Israel’s nuclear weapons program. One can only wonder whether Milchan was not effectively set up in his Hollywood career as a cover for his Mossad activities. But Milchan, it seems, is still wielding influence in Israel’s twilight world of security.
  • eyond this, one one can only speculate about how Cohen’s indebtedness to Milchan, Packer and Netanyahu might have influenced his decisions as head of the Mossad. It was only a few years ago that the former Mossad chief, Meir Dagan, was reported to have wrestled furiously with Netanyahu to stop him launching a military strike on Iran. Prosecution drags feet It is unclear for the time being whether the revelations are drawing to a close or will lead deeper into Israel’s twin netherworlds of financial corruption and security. But what has emerged so far should be enough to finish off Netanyahu as prime minister. Whether it does so may depend on the extent of Israel’s compromised legal system. Attorney general Avichai Mendelblit was appointed by Netanyahu and is a political ally. He appears to have been dragging his feet as much as possible to slow down the police investigation, if not sabotage it. But the weight of evidence is looking like it may prove too overwhelming. As political analyst Yossi Verter observed: “There’s no way that a police commissioner … appointed [by Netanyahu] and a cautious attorney general, who in the past was part of his close circle and one of his loyalists, would be putting him through the seven circles of hell if they weren’t convinced that there’s a solid basis for indictment and conviction.” The next question for Netanyahu is whether he will step down if indicted. He should, if Olmert’s example is followed. But his officials are citing a 1993 high court ruling that allows a cabinet minister under indictment to remain in office. Certainly if Netanyahu chooses to stay on, his decision would be appealed to the court again. However, the judges may be reluctant to oust a sitting prime minister. The court of public opinion is likely to be decisive in that regard. A recent poll shows few Israelis believe Netanyahu is innocent of the allegations. Some 54 per cent think he broke the law, while only 28 believe him. Opinion, however, is split evenly on whether he should resign.
  • If past experience is any measure, Netanyahu will try to turn public opinion his way by increasing friction with the Palestinians and exploiting the international arena, especially his relations with the Trump administration. He may be expected to encourage Trump at the very least to posture more stridently against Iran. Nonetheless, most observers assume Netanyahu is doomed – it is simply a matter of when. The odds are on an indictment in late spring, followed by elections in the fall, say Israeli analysts. At this stage, none of his political rivals wants to be seen stabbing Netanyahu in the back. Most are keeping quiet. But behind the scenes, political leaders are hurrying to forge new alliances and extract political concessions while Netanyahu is wounded.
  • Who might succeed Netanyahu? Yair Lapid, of the centre-right Yesh Atid, is heading the polls, but that may in part reflect the disarray in Netanyahu’s Likud party. In a sign of where the deeper currents in Israeli society are leading, a Maariv poll last week showed that settler leader Naftali Bennett would win an election if he were to head the Likud. Netanyahu now needs the help of all the powerful friends he can muster. His biggest ally, U.S. casino magnate Sheldon Adelson, may not be among them. After the revelations that Netanyahu was conspiring against him with Mozes, Adelson has cut back on Israel Hayom’s circulation and is reported to be offering less favorable coverage of the Netanyahus. That could prove the final straw, sealing Netanyahu’s fate.
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