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Gary Edwards

Swimming with the Sharks: Goldman Sachs, School Districts, and Capital Appreciation Bonds | nsnbc international - 0 views

  • In 2008, after collecting millions of dollars in fees to help California sell its bonds, Goldman urged its bigger clients to place investment bets against those bonds, in order to profit from a financial crisis that was sparked in the first place by irresponsible Wall Street speculation. Alarmed California officials warned that these short sales would jeopardize the state’s bond rating and drive up interest rates. But that result also served Goldman, which had sold credit default swaps on the bonds, since the price of the swaps rose along with the risk of default.
  • In 2009, the lenders’ lobbying group than proposed and promoted AB1388, a California bill eliminating the debt ceiling requirement on long-term debt for school districts. After it passed, bankers traveled all over the state pushing something called “capital appreciation bonds” (CABs) as a tool to vault over legal debt limits. (Think Greece again.) Also called payday loans for school districts, CABs have now been issued by more than 400 California districts, some with repayment obligations of up to 20 times the principal advanced (or 2000%).
  • The controversial bonds came under increased scrutiny in August 2012, following a report that San Diego County’s Poway Unified would have to pay $982 million for a $105 million CAB it issued. Goldman Sachs made $1.6 million on a single capital appreciation deal with the San Diego Unified School District.
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  • . . . AB1388, signed by then-Gov. Arnold Schwarzenegger in 2009, [gave] banks the green light to lure California school boards into issuing bonds to raise quick money to build schools. Unlike conventional bonds that have to be paid off on a regular basis, the bonds approved in AB1388 relaxed regulatory safeguards and allowed them to be paid back 25 to 40 years in the future. The problem is that from the time the bonds are issued until payment is due, interest accrues and compounds at exorbitant rates, requiring a balloon payment in the millions of dollars. . . . Wall Street exploited the school boards’ lack of business acumen and proposed the bonds as blank checks written against taxpayers’ pocketbooks. One school administrator described a Wall Street meeting to discuss the system as like “swimming with the big sharks.” Wall Street has preyed on these school boards because of the millions of dollars in commissions. Banks, financial advisers and credit rating firms have billed California public entities almost $400 million since 2007. [State Treasurer] Lockyer described this as “part of the ‘new’ Wall Street,” which “has done this kind of thing on the private investor side for years, then the housing market and now its public entities.”
  • The Federal Reserve could have made virtually-interest-free loans available to local governments, as it did for banks. But the Fed (whose twelve branches are 100% owned by private banks) declined. As noted by Cate Long on Reuters:
  • The Fed has said that it will not buy muni bonds or lend directly to states or municipal issuers. But be sure if yields rise high enough Merrill Lynch, Goldman Sachs and JP Morgan will be standing ready to “save” these issuers. There is no “lender of last resort” for muniland.
  • Among the hundreds of California school districts signing up for CABs were fifteen in Orange County. The Anaheim-based Savanna School District took on the costliest of these bonds, issuing $239,721 in CABs in 2009 for which it will have to repay $3.6 million by the final maturity date in 2034. That works out to $15 for every $1 borrowed. Santa Ana Unified issued $34.8 million in CABs in 2011. It will have to repay $305.5 million by the maturity date in 2047, or $9.76 for every dollar borrowed. Placentia-Yorba Linda Unified issued $22.1 million in capital appreciation bonds in 2011. It will have to repay $281 million by the maturity date in 2049, or $12.73 for every dollar borrowed.
  • In 2013, California finally passed a law limiting debt service on CABs to four times principal, and limiting their maturity to a maximum of 25 years. But the bill is not retroactive. In several decades, the 400 cities that have been drawn into these shark-infested waters could be facing municipal bankruptcy – for capital “improvements” that will by then be obsolete and need to be replaced.
  • Then-State Treasurer Bill Lockyer called the bonds “debt for the next generation.” But some economists argue that it is a transfer of wealth, not between generations, but between classes – from the poor to the rich. Capital investments were once funded with property taxes, particularly those paid by wealthy homeowners and corporations. But California’s property tax receipts were slashed by Proposition 13 and the housing crisis, forcing school costs to be borne by middle-class households and the students themselves.
  • According to Demos, per-student funding has been slashed since 2008 in every state but one – the indomitable North Dakota. What is so different about that state? Some commentators credit the oil boom, but other states with oil have not fared so well. And the boom did not actually hit in North Dakota until 2010. The budget of every state but North Dakota had already slipped into the red by the spring of 2009.
  • One thing that does single the state out is that North Dakota alone has its own depository bank.
  • The state-owned Bank of North Dakota (BND) was making 1% loans to school districts even in December 2014, when global oil prices had dropped by half. That month, the BND granted a $10 million construction loan to McKenzie County Public School No. 1, at an interest rate of 1% payable over 20 years. Over the life of the loan, that works out to $.20 in simple interest or $.22 in compound interest for every $1 borrowed. Compare that to the $15 owed for every dollar borrowed by Anaheim’s Savanna School District or the $10 owed for every dollar borrowed by Santa Ana Unified.
  • How can the BND afford to make these very low interest loans and still turn a profit? The answer is that its costs are very low. It has no exorbitantly-paid executives; pays no bonuses, fees, or commissions; pays no dividends to private shareholders; and has low borrowing costs. It does not need to advertise for depositors (it has a captive deposit base in the state itself) or for borrowers (it is a wholesale bank that partners with local banks, which find the borrowers). The BND also has no losses from derivative trades gone wrong. It engages in old-fashioned conservative banking and does not speculate in derivatives. Unlike the vampire squids of Wall Street, it is not motivated to maximize its bottom line in a predatory way. Its mandate is simply to serve the public interest.
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    " Remember when Goldman Sachs - dubbed by Matt Taibbi the Vampire Squid - sold derivatives to Greece so the government could conceal its debt, then bet against that debt, driving it up? It seems that the ubiquitous investment bank has also put the squeeze on California and its school districts. Not that Goldman was alone in this; but the unscrupulous practices of the bank once called the undisputed king of the municipal bond business epitomize the culture of greed that has ensnared students and future generations in unrepayable debt."
Paul Merrell

In 2008 Mumbai Attacks, Piles of Spy Data, but an Uncompleted Puzzle - NYTimes.com - 0 views

  • In the fall of 2008, a 30-year-old computer expert named Zarrar Shah roamed from outposts in the northern mountains of Pakistan to safe houses near the Arabian Sea, plotting mayhem in Mumbai, India’s commercial gem.Mr. Shah, the technology chief of Lashkar-e-Taiba, the Pakistani terror group, and fellow conspirators used Google Earth to show militants the routes to their targets in the city. He set up an Internet phone system to disguise his location by routing his calls through New Jersey. Shortly before an assault that would kill 166 people, including six Americans, Mr. Shah searched online for a Jewish hostel and two luxury hotels, all sites of the eventual carnage.
  • But he did not know that by September, the British were spying on many of his online activities, tracking his Internet searches and messages, according to former American and Indian officials and classified documents disclosed by Edward J. Snowden, the former National Security Agency contractor. They were not the only spies watching. Mr. Shah drew similar scrutiny from an Indian intelligence agency, according to a former official briefed on the operation. The United States was unaware of the two agencies’ efforts, American officials say, but had picked up signs of a plot through other electronic and human sources, and warned Indian security officials several times in the months before the attack.
Paul Merrell

Here's How You Can Find Out If The NSA Shared Your Data With British Spies - Forbes - 0 views

  • In the UK earlier this month, human rights groups Liberty and Privacy International were cheered by a tribunal decision that declared GCHQ’s access to NSA spies’ data illegal. Though it was a hollow victory, as the tribunal also declared all current activities, including all those blanket surveillance projects much derided by free speech activists, entirely legal. The practices previously broke the law because the public was unaware of what safeguards were in place for the UK’s access to data from NSA programs like Prism; as soon as Snowden blew everything wide open the snoops had to explain themselves, and that was enough for the tribunal to confirm the legality of GCHQ’s operations. But the case has had one significant effect: anyone can now figure out if their data was illegally shared by the agencies. Privacy International has set up a simple webpage that anyone in the world can sign up to. You can visit the page here.
  • Once the UK Investigatory Powers Tribunal has determined whom was affected, it has to inform them. Though participants should find out whether their data were unlawfully obtained by GCHQ from the millions of private communications hoovered up by the NSA up until December 2014, it won’t be anytime soon. Privacy International warned in its FAQs: “Count on it being many months, and likely years before this action is completed.” And somewhat ironically Privacy International has to collect participant’s information, including their name and email address, to supply the service. They may ask for more information from willing participants once the group has determined if more is required from the IPT. Anyone who wants to submit directly to the tribunal can do so here.
Paul Merrell

Britain and Canada Involved in Foiled US Venezuelan Coup Plot | Global Research - 0 views

  • Britain and Canada were co-conspirators in the latest plot to topple Venezuela’s government. TeleSUR provided detailed coverage of Washington’s war on Venezuelan democracy. Its dirty hands manipulate violence and instability worldwide. US funded and supported key opposition fascist figures Antonio Ledezma, Maria Corina Machado and Leopoldo Lopez released a joint February 11 communique a day before the foiled coup. Titled “A Call on Venezuelans for a National Accord for the Transition,” it promoted regime change. Called for Venezuela to be handed back to monied interests. Called Bolivarian fairness “anti-democra(tic)…inefficient and… corrupt.” Run by “an unscrupulous elite (making) the State totalitarian.” Creating “a humanitarian crisis.” “(T)he Maduro government has entered a terminal phase.” Claimed it’s “the duty of every democrat to help resolve the current crisis, to defend freedom…to make the transition…(to restore) democratic order.”
  • Ledezma, Marhado and Lopez want Maduro’s government violently overthrown, democracy crushed. Washington, Britain and Canada hatched the latest plot to return Venezuela to its bad old days. TeleSUR reported new details. “Fresh evidence” showing their involvement, saying: “Many of the individuals being charged, included a military general – whom has confessed to participating in the plans – and a retired lieutenant colonel – have indicated you (fascist Justice Party president Julio Borges) as being a key participant in meetings, which resulted in the decision to carry out a series of bombing attacks as a part of the coup, targeting the Presidential Palace, the National Assembly,” key ministries, TeleSUR’s offices, and other Caracas sites. Venezuelan authorities identified US embassy personnel involved. So were a Royal Canadian Mounted Police official and UK diplomatic core member, according to National Assembly President Diosdado Cabello. They sought information on airport capabilities in case needed in an emergency.
  • Computers seized had detailed coup plans, including maps showing targets to be bombed. A video showed military officials announcing Maduro’s government no longer was recognized. It was scheduled to be aired after planned bombings were launched. Either by a Venezuelan or Miami TV station. Cabello showed a 10-year visa given to one of the plotters days ahead of the planned coup. He noted Obama’s recent statement about “American leadership at times entail(ing) twisting the arms of states which don’t do what we need them to do.” He said coup plotters planned to topple Venezuela’s government forcefully on the anniversary of US-manipulated 2014 street violence. Killing 43. Injuring hundreds. Causing billions of dollars in physical and economic damage. US planned, funded, implemented and directed economic, political, and street warfare continues to topple the hemisphere’s most vibrant democracy. On Saturday, Maduro addressed Venezuelans a second time on national television. Following up on his Thursday coup plot revelations.
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  • Explaining more details of Washington’s scheme to oust him forcefully. “Almost all (opposition) leaders knew about this plan, this ambush, almost all of them, including the four-time losing candidate,” Maduro explained. Referring to Henrique Capriles Radonski. One of many Venezuelan fascists wanting power back the old-fashioned way. “I’m not saying all of them were actively involved,” Maduro said. “But it was a rumor circulating amongst them, that something was about to happen. Figures arrested confessed to the plot, Maduro explained. They provided more evidence of Washington’s scheme. It involved enlisting Venezuelan political and military officials. Bribing them with large cash payments. America’s Caracas embassy was coup plot headquarters. Maduro called on Obama to stop interfering in Venezuelan affairs, saying: “In your name, they are organizing coup plots against (Venezuela’s) democratically elected government…” Bolivian President Evo Morales expressed solidarity with Maduro saying “(w)e all have the obligation to enforce respect for democracy and elections, and if we have a clear conscious, not even the empire can defeat us.”
  • Maduro received numerous other messages of support. Nicaraguan President Daniel Ortega condemned the “criminal and futile attempts of the empire to undermine the Bolivarian Revolution.” From Mexico City, the Network of Intellectuals, Artists and Social Movements in Defense of Humanity expressed solidarity in an official statement. It condemned plans to topple Venezuela’s government. TeleSUR reported civil and political organizations worldwide expressing solidarity with Venezuela. Union of South American Nations (UNASUR) Secretary General Ernesto Samper denounced plans to oust Maduro. Venezuelan opposition spokesman Jesus Torrealba lied saying “(t)he government makes up these stories about coups to avoid talking about how the country is breaking down.”
  • State Department spokeswoman Jen Psaki lied calling accusations about Washington plotting Maduro’s ouster “ridiculous.” She absurdly added: “(T)he United States does not support political transitions by non-constitutional means.” “Political transitions must be democratic, constitutional, peaceful, and legal.” “We have seen many times that the Venezuelan Government tries to distract from its own actions by blaming the United States or other members of the international community for events inside Venezuela. These efforts reflect a lack of seriousness on the part of the Venezuelan Government to deal with the grave situation it faces.”
Joseph Skues

How Trade Deals Boost the Top 1% and Bust the Rest | Robert Reich - 0 views

  • Suppose that by enacting a particular law we'd increase the U.S. Gross Domestic Product. But almost all that growth would go to the richest 1 percent. The rest of us could buy some products cheaper than before. But those gains would be offset by losses of jobs and wages.This is pretty much what "free trade" has brought us over the last two decades.I used to believe in trade agreements. That was before the wages of most Americans stagnated and a relative few at the top captured just about all the economic gains.
  • The biggest things big American corporations sell overseas are ideas, designs, franchises, brands, engineering solutions, instructions, and software.Google, Apple, Uber, Facebook, Walmart, McDonalds, Microsoft, and Pfizer, for example, are making huge profits all over the world.But those profits don't depend on American labor -- apart from a tiny group of managers, designers, and researchers in the U.S.
  • According to Economic Policy Institute, the North American Free Trade Act cost U.S. workers almost 700,000 jobs, thereby pushing down American wages.
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  • Korea-U.S. Free Trade Agreement, America's trade deficit with Korea has grown more than 80 percent, equivalent to a loss of more than 70,000 additional U.S. jobs.
  • The new-style global corporate agreements mainly enhance corporate and financial profits, and push down wages.
  • Trans Pacific Partnership -- the giant deal among countries responsible for 40 percent of the global economy.
  • also guard their overseas profits.
  • even more patent protection oversea
  • And it would allow them to challenge any nation's health, safety and environmental laws that stand in the way of their profits -- including our own.
  • White House strategists seem to think such corporations are accountable to the U.S. government. Wrong. At most, they're answerable to their shareholders, who demand high share prices whatever that requires.
Paul Merrell

EU Realignment on Saudi Arabia and Iran? « LobeLog - 0 views

  • In a rare move, the European Parliament (EP) recently adopted a strongly worded resolution condemning human rights abuses in Saudi Arabia by a vote of 460 to 153. The focus of the resolution was Raif Badawi, a blogger that the Saudi authorities charged with blasphemy and sentenced to 1,000 lashes, 10 years of prison, and a 228,000 euro fine for founding a liberal website. But the resolution took a broader view on the human rights situation in Saudi Arabia. The European MPs didn´t mince words. Although they took note of some cautious reforms undertaken by the late king Abdullah, they charged that the Saudi political and social system “remains profoundly undemocratic, makes women and Shia Muslims second-class citizens, seriously discriminates against the country’s large foreign workforce and severely represses all voices of dissent.” They portrayed the Badawi case “as a symbol of the Kingdom’s characteristic policies of intolerance and extremist interpretation of Islamic law.” In particularly damning paragraphs, the EP took Saudi Arabia to task for playing “a leading role in financing, disseminating and promoting worldwide a particularly extremist interpretation of Islam, which, in its most sectarian vision, has inspired terrorist organisations such as the so-called Islamic State and al‑Qaeda.” In language that is certain to provoke Riyadh´s ire, the MPs noted that the so-called Islamic State (ISIS or IS) and Saudi Arabia prescribe near-identical punishments for a host of crimes, and that Saudi claims to be a partner to the EU in fighting IS and al-Qaeda would have been more credible “if it did not engage in anachronistic and extremist practices, such as public beheadings, stoning and other forms of torture, similar to those committed by IS.”
  • By way of conclusion, the MPs asked the EU and the Member States “to reconsider their relationship with Saudi Arabia, in a way that allows it to pursue its economic, energy and security interests, whilst not undermining the credibility of its core human rights commitments.” This unprecedented criticism of Saudi Arabia, officially an “ally,” by a EU institution contrasts with the relatively milder treatment accorded to Iran, an official “foe” and Saudi Arabia´s regional antagonist. In its last resolution adopted in May 2014, the EP criticized Iran for its human rights abuses, but the overall tone was much more positive, highlighting an array of possible areas of cooperation.
  • the EP resolution sends an important political message. In the wake of the terrorist attacks in Paris and Copenhagen, it echoes a growing realization among policymakers, diplomats, and the wider security community that Saudi Arabia´s track record of supporting extremist groups may be a root cause of the terrorist threat, while Iran´s opposition to IS and al-Qaeda could help Europe tackle this threat. The prospects for regional cooperation with Iran in countering IS, al-Qaeda, and also the Taliban, are a staple of think-tank conferences in Europe these days. The idea of Iran´s potentially stabilizing role in the region is becoming mainstream.
Paul Merrell

​Russia ratifies $100bn BRICS New Development Bank - RT Business - 0 views

  • The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF. The New Development Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.
  • The decision to establish the BRICS bank, along with a $100 billion reserve currency pool, was made in July 2014. Each of the five member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion. The bank will be headquartered in Shanghai, India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will come from Brazil.
Paul Merrell

Great Britain Creates a Cyber Brigade to Manipulate Public Opinion | New Eastern Outlook - 0 views

  • t’s no coincidence then that the White House advised London to establish a special unit within its military structure – the British Cyber Command, transferring up to 1500 officers under its command just “for starters”. One must note that Washington has already created its own special unit for cyberwarfare back in 2009. This unit goes under the name of United States Cyber Command, with its headquarters being located at Fort Meade (Maryland). According to The Guardian, the 77th brigade will formally come into being in April. The brigade will be carrying out covert operations on social networks exclusively, in an effort to spread disinformation and manipulate the population of certain countries, which should create “favorable conditions” for applying political pressure or the executing of regime change in strategically important regions of the world. Its headquarters will be located to the west of London in Newbury (Berkshire) while it’s official insignia will be the famous symbol of Chindits (a mythical god-like lion guarding temples in Myanmar and other countries in South-East Asia), that was used by a a British India ‘Special Force’ which participated in the suppression of guerrilla Japanese troops deep in the forests of Southeast Asia. The use of social networks to overthrow unwanted regimes has been Washington’s modus operandi for decades now. This led to the creation of a whole industry of disinformation and the manipulation of public opinion. The events surrounding the Arab Spring, countless other color revolutions and the latest events in Ukraine can serve as a perfect example of how an unstable sociopolitical and economic situation in a country can be exploited by Western intelligence agencies to a achieve a radical change in the sovereign governments of other states .First appeared: http://journal-neo.org/2015/02/11/rus-v-britanii-sozdayut-internetarmiyu/
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    In Egypt, Tunisia, Yemen, Algeria, Jordan, Syria, Ukraine, and Hong Kong along with a number of other countries, social networks have been used to coordinate the movement of protest groups, which allowed the gathering of a considerable number of protesters in designated areas. Back in 2011 the The Guardian reported the US Department of Defense was developing special software designed solely for manipulating social network users into buying pro-American propaganda. This operation was codenamed Operation Earnest Voice. This software has been put to "good use" in Britain, the United States and other Western countries during the Ukraine crisis for mass distribution of misleading information about Russia. This operation went as far as attempting to rewrite the history of World War II, with the active participation of Polish and Baltic politicians. The news on the creation of the 77th Brigade came short after the announcement made by Lieutenant General Marshall Webb the Commander, NATO Special Operations Forces HQ on the need to improve counter-information efforts against the Islamic State, as well as Russian and alternative media's coverage of the true causes of the ongoing events in Ukraine, and the large scale extermination of the civilian population by Kiev military units. These concerns, along with the recent events in Afghanistan, Iraq, and Syria, were the reason behind the assembly of a British cyber squad.
Paul Merrell

China says wants closer military ties with Iran | Reuters - 0 views

  • China wants to have closer military ties with Iran, the Chinese defense minister told the visiting head of the Iranian navy on Thursday, state media reported, reaffirming diplomatic links despite controversy over Iran's nuclear plans.
  • Naval cooperation between Iran and China is aimed at reinforcing Iran's military capability in the Gulf, analysts say, as well as displaying China's plan to exert greater influence and presence beyond East Asia.“The (port) call reflects China’s military-to-military relationship with Iran," said Christian Le Mière, a naval expert at the International Institute for Strategic Studies think-tank."It is the most explicit sign of Beijing’s acknowledgment of this relationship, which has remained relatively covert until now."
  • China's People's Liberation Army Daily separately reported that Sayyari had been given tours of a Chinese submarine and warships, where he "listened to an introduction on equipment ability and weapons systems".Sayyari said he hoped Iran and China could cooperate on anti-piracy operations, the newspaper said.China is Iran's top oil buyer and has been the most aggressive in raising its crude purchases after an easing of the Western sanctions aimed at ending Tehran's disputed nuclear program.
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  • China, a participant at the nuclear talks with Iran, has consistently urged a negotiated solution and decried efforts to place sanctions which have not been endorsed by the United Nations on Iran.
Paul Merrell

Did Elizabeth Warren Just Change Her Tune on Running for President? | The Nation - 0 views

  • It is certainly possible Warren just got sloppy during the umpteenth iteration of this question, and used looser language than normal while speaking with a non-political reporter. But it’s also true that she’s been increasingly explicit in her criticisms of the Democratic establishment and its relationship with big banks. She told Salon last week that the Obama administration “protected Wall Street. Not families who were losing their homes. Not people who lost their jobs. And it happened over and over and over.”
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    So were I a Democratic party line voter, would I prefer Hillary or Elizabeth Warren? Or better yet, would We the People like to see a faceoff in the Democratic Primary between an anti-bankster and a bankster co-conspirator? 
Paul Merrell

Syrians to be trained to defend territory, not take ground from jihadists, officials say - The Washington Post - 0 views

  • The Syrian opposition force to be recruited by the U.S. military and its coalition partners will be trained to defend territory, rather than to seize it back from the Islamic State, according to senior U.S. and allied officials, some of whom are concerned that the approach is flawed.
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    More detail in the article. But the bottom line is that either the Administration is lying about its military strategy in Syria or it's doomed to fail. Most likely, in my opinion, is that Obama is playing for time while an end-game strategy is designed and agreed upon with some very reluctant allies in the Mideast. Either that, or Obama just wants to run out the clock and let his successor deal with the mess. 
Paul Merrell

Remarks With Canadian Foreign Minister John Baird After Their Meeting - 0 views

  • SECRETARY KERRY: (In French.) It’s an honor for me to be here, a privilege for me to represent President Obama, the United States of America, and all American citizens in expressing our deep solidarity with our country’s closest ally. Just as you have so often stood with us, we’re proud to be here, standing with you today.
  • I again congratulate the people of Ukraine on Sunday’s elections, a bold and clear choice for democracy, for reform, and for European integration, which is their right to choose. I am concerned, however, at plans for another so-called local election in eastern Ukraine on November 2nd, which Russia has said it will recognize. This would be a clear violation of the commitments made by both Russia and the separatists that it backs in the Minsk agreements. And the United States, along with the rest of the international community, will not recognize so-called separatist elections, unless they happen within the framework of the special status law passed by Ukraine’s parliament and signed by President Poroshenko. We continue to support Ukraine in its efforts to promote reform, fight corruption, pursue a peaceful resolution to the conflict in the east, and ultimately end the occupation of Crimea.
Paul Merrell

Beltway Foreign Policy Groups to Congress: Stay Out of the Way on Iran! « LobeLog - 0 views

  • The November 24 deadline for Iran and world powers to reach an agreement on Iran’s nuclear program is quickly approaching.
  • If there is a deal on Nov. 24, the White House indicated, in an article authored by David E. Sanger in Sunday’s New York Times, that it would not seek an immediate vote on the agreement or sanctions relief, instead asserting that the administration can, and may need to, roll back some sanctions unilaterally as part of immediate sanctions relief guarantees in a possible agreement. Hawks in Congress may want to portray their position as representing the mainstream consensus but a letter signed by thirty-seven organizations and sent to members of Congress on Thursday offers some indication that many foreign policy groups in the beltway are concerned by Congress’ latest effort to meddle in the final weeks of sensitive diplomacy before the November deadline. The signatories—which include the Center for Arms Control and Non-Proliferation; J Street; MoveOn.org; the National Iranian American Council; Progressive Democrats of America; the United Methodist Church and VoteVets— expressed “deep concern with inaccurate and counterproductive rhetoric from a handful of Members of Congress regarding possible outcomes of the current negotiations.”
  • They continue: Particularly irresponsible are threats to oppose any comprehensive agreement limiting Iran’s nuclear program that initially suspends US sanctions on Iran through lawful executive action. Congress’ authorization of the President’s power to suspend and re-impose US sanctions on Iran is clear and unmistakable in each piece of legislation it has passed on the subject. Use of these provisions by the President to implement the initial phase of an agreement that ensures Iran does not acquire a nuclear weapon would reflect an affirmation, not a subversion, of Congress’ will. The echo chamber on Capitol Hill may give members of the House and Senate the impression that only the threat of military action or crushing sanctions are effective tools in bringing Iran to the negotiating table. (My colleague Ali Gharib and I discussed the disproportionate voice given to individuals from neoconservative organizations at congressional hearings on Iran in a July article in The Nation.)
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  • But the letter sent out on Thursday might give some congressional Democrats pause. Congress may lean hawkish but progressive groups in the beltway are throwing their weight behind the White House’s efforts to reach a diplomatic agreement on Iran’s nuclear program and are urging Congress to stay out of the way.
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    There's more behind this story than appears in its words. "Progressive" organizations have largely stood silent on the topic of war since Obama was elected because they are Obama fans and Obama has been anything but peaceful. But now they turn out because Obama needs Congress to stay out of the Iran situation until negotiations are complete and for some time afterward. The pressure on Congress to intervene is coming from the Israel Lobby. Keep in mind that it's been the consensus position of all 17 U.S. intelligence agencies for many years that Iran has no plans to create a nuclear weapon capability. Several Israeli intelligence and military leaders have said the same thing. The Iranian nukes myth is a propaganda theme of the ultra-right wing Israeli government leadership that has been used for several years in efforts to persuade the U.S. to invade Iran and bomb it back into the Stone Age. And their excuse for involving the U.S. military evaporates if the Obama Administration successfully negotiates an agreement with Iran that limits its lawful development of nuclear energy for peaceful purposes that will safeguard from any change of mind in Iran on development of nuclear weapons via, e.g., production limits and on-site inspections. The counter-argument is that such an agreement would have to be ratified by the Senate on grounds that it would be a treaty. But that argument falls short of the mark because: [i] the Executive has always had the unfettered right to negotiate and sign treaties; [ii] the U.S. government is not bound by treaties unless and until the Senate ratifies the treaty; and [iii] Congress already explicitly gave Obama authority to impose and suspend economic sanctions at his discretion. Meanwhile, part of the interim agreement with Iran so that negotiations can take place is a promise by the Obama Administration that it would veto any legislation imposing further sanctions on Iran during the period of negotiation. Because of the Israel Lobby'
Paul Merrell

How investigating Britain for crimes in Iraq can save the International Criminal Court | nsnbc international - 0 views

  • The International Criminal Court (ICC)’s reputation is on the ropes as it faces allegations of racism, imperialism and impotence. But there is a glimmer of hope for the international justice project: the court’s investigation into war crimes allegedly carried out by British forces during the Iraq War. The investigation has the potential to reaffirm the Court’s credibility at a time when it faces dire new threats to its very survival at a time when it is arguably needed more than ever.
Paul Merrell

Goldberg Sees Crisis in US-Israel Ties, Blames Bibi « LobeLog - 0 views

  • While everyone ritually insists that the bonds between Israel and the United States are “unbreakable,” yesterday’s analysis by Jeffrey Goldberg, “The Crisis in U.S.-Israel Relations Is Officially Here,” argues that they’re currently under unprecedented strain and that the fault lies mainly with Prime Minister Bibi Netanyahu. The analysis argues further that, post-November, the Obama administration may no longer be inclined to protect Israel (at least to the same pathetic extent) at the UN Security Council and may even be willing to go a step further by presenting “a public full lay-down of the administration’s vision for a two-state solution, including maps delineating Israel’s borders. These borders, to Netanyahu’s horror, would based on 1967 lines, with significant West Bank settlement blocs attached to Israel in exchange for swapped land elsewhere. Such a lay-down would make explicit to Israel what the U.S. expects of it.” I’m not a big fan of Goldberg, but this analysis is definitely worth a read if for no other reason than his voice is a very important one in the US Jewish community, including among the right-wing leadership of its major national organizations. And he essentially gives over most of the article—in a way that suggests he shares their views—to anonymous administration officials who have clearly grown entirely contemptuous of the Israeli leader, calling him, among other names, “chickenshit.” Goldberg himself describes the Netanyahu government’s policy toward Palestinians as being “disconnected from reality” and stresses what he calls the “unease felt by mainstream American Jewish leaders about recent Israeli government behavior.” It seems that his chief envoy and confidante here, Ron Dermer, is not doing a good job.
  • Of particular interest to readers of this blog, however, are Goldberg’s observations about how the administration views Bibi’s bluster about Iran: The official said the Obama administration no longer believes that Netanyahu would launch a preemptive strike on Iran’s nuclear facilities in order to keep the regime in Tehran from building an atomic arsenal. “It’s too late for him to do anything. Two, three years ago, this was a possibility. But ultimately he couldn’t bring himself to pull the trigger. It was a combination of our pressure and his own unwillingness to do anything dramatic. Now it’s too late.” This assessment represents a momentous shift in the way the Obama administration sees Netanyahu. In 2010, and again in 2012, administration officials were convinced that Netanyahu and his then-defense minister, the cowboyish ex-commando Ehud Barak, were readying a strike on Iran. To be sure, the Obama administration used the threat of an Israeli strike in a calculated way to convince its allies (and some of its adversaries) to line up behind what turned out to be an effective sanctions regime. But the fear inside the White House of a preemptive attack (or preventative attack, to put it more accurately) was real and palpable—as was the fear of dissenters inside Netanyahu’s Cabinet, and at Israel Defense Forces headquarters. At U.S. Central Command headquarters in Tampa, analysts kept careful track of weather patterns and of the waxing and waning moon over Iran, trying to predict the exact night of the coming Israeli attack.
  • Today, there are few such fears. “The feeling now is that Bibi’s bluffing,” this second official said. “He’s not Begin at Osirak,” the official added, referring to the successful 1981 Israeli Air Force raid ordered by the ex-prime minister on Iraq’s nuclear reactor. The belief that Netanyahu’s threat to strike is now an empty one has given U.S. officials room to breathe in their ongoing negotiations with Iran. This is a significant passage. It suggests that the administration has decided to essentially ignore Netanyahu and his threats to take unilateral action, including when they are conveyed by members of Congress close to the Israel lobby. It also suggests strongly that the administration will not back up Israel if it should indeed undertake a strike of its own in hopes that Washington would be dragged into to finishing the job.
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  • Goldberg’s analysis about the state of the relationship is, in some ways, mirrored by Bret Stephens’s weekly “Global View” column in Tuesday’s Wall Street Journal, “Bibi and Barack on the Rocks,” although he, entirely predictably given his pro-settler worldview, sees Bibi as the wronged party. And, unlike Goldberg, he doesn’t see the US as the more powerful. Noting how Defense Minister Moshe Yaalon was snubbed by senior administration officials with whom he requested to meet, Stephens, a former editor of the Jerusalem Post, writes: The administration also seems to have forgotten that two can play the game. Two days after the Yaalon snub, the Israeli government announced the construction of 1,000 new housing units in so-called East Jerusalem, including 600 new units in the Ramat Shlomo neighborhood that was the subject of a 2010 row with Joe Biden. Happy now, Mr. Vice President? Stephens calls for a “trial separation” by the two countries in which Israel will give up its $3 billion dollar/year US aid package to free itself from US interference
  • The administration likes to make much of the $3 billion a year it provides Israel (or, at least, U.S. defense contractors) in military aid, but that’s now less than 1% of Israeli GDP. Like some boorish husband of yore fond of boasting that he brings home the bacon, the administration thinks it’s the senior partner in the marriage. Except this wife can now pay her own bills. And she never ate bacon to begin with. It’s time for some time away. Israel needs to look after its own immediate interests without the incessant interventions of an overbearing partner. The administration needs to learn that it had better act like a friend if it wants to keep a friend. It isn’t as if it has many friends left. This is precisely where Goldberg believes current Israeli policy is leading it.
  • Netanyahu, and the even more hawkish ministers around him, seem to have decided that their short-term political futures rest on a platform that can be boiled down to this formula: “The whole world is against us. Only we can protect Israel from what’s coming.” …But for Israel’s future as an ally of the United States, this formula is a disaster.”
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    If Goldberg and Stephens have it right, a U.S./Israel divorce might just spell the end of the appartheid state of Israel. It is only the U.S. veto on the U.N. Security Council that has enabled Israel to continue to treat Palestinians with impunity and to retain control of and colonize the territory it seized in the 1967 war that it launched. (The right to acquire territory by conquest was abolished by the U.N. Charter and the Fourth Geneva Convention in the late 1940s.)  Israel is now a pariah state internationally, with only the U.S., Canada, and a few minor island nations dependent on the U.S. still voting for Israel even in the U.N. General Council. Moreover, the U.S. public is fed up with the foreign wars the U.S. has been waging in the Mideast in aid of Israel's empirical goal of destabilizing and Balkanizing Israel's Arab neighbors. A U.S./Israel divorce would almost certainly bring down Netanyahu's government. On the other hand, the Obama Administration's relationship with Israel has been a departure from the historical norm in the U.S. and Obama's likely successor, Hillary Clinton, has long been much more friendly with the Israel Lobby than Obama.  Many close observers believe that Netanyahu's strategy with Obama has been to wait until Obama is out of office, betting that his successor will be much more amenable to Bibi's desires. But with Bernie Sanders hat in the ring for Auction 2016 and possibly Elizabeth Warren as well, it's conceivable that issues they raise might push Hillary to adopt a less Israel-friendly stance. But on yet another hand, Obama's stance on ISIL is entirely consistent with Israel's longstanding goal of regime change in Syria and Balkanization of Iraq into three nations along ethnic/religious lines, an independent  Kurdistan in the north, a Shia-stan in the South, and a Sunni state in the middle. Note in this regard Obama's strategy of arming "moderate" Syrians only to defend territory ISIL has not yet seized, then to bring down t
Paul Merrell

Ebola? How Do You Know, WHO and CDC? | nsnbc international - 0 views

  • There is something perversely strange about the entire hoopla around the so-called Ebola outbreaks. An African man is admitted to a Dallas hospital with symptoms, treated, released and re-admitted, the “first” case of Ebola in the USA. What the guardians of truth in the mainstream media never ask is how reliable is the test that determines if someone has Ebola.
  • One courageous scientist who did question the Gallo HIV-AIDS hypothesis was Kary Mullis, who in 1996 wrote, “The HIV/AIDS hypothesis is one hell of a mistake.” Mullis won the Nobel Prize in chemistry in 1993. His devastating comments were ignored by the ever-vigilant mainstream media and medical profession. In 1983 Gallo arbitrarily transformed correlation into causality and said he had discovered the “virus” causing acquired immunodeficiency or AID, which was then named a “syndrome,” or AIDS. Gallo had just before that announcement won a patent for the only known test to determine of someone had AIDS. An habitual user of certain drugs like amyl nitrite or poppers, or even a pregnant woman would show HIV-positive with the Gallo test. Fears of a new global plague were stoked in the media by irresponsible scientists. Gallo sold his AIDS test to five pharmaceutical companies and sat back to reap the royalties. The Ebola Test
  • Can the PCR blood test tell how much Ebola virus is in a person’s body? The same Kary Mullis cited above regarding the HIV/AIDS hypothesis invented the PCR test in 1983, the basis on which his Nobel Prize was awarded. He told journalist John Lauritsen years back of his test and warned against its misuse. Lauritsen reported: With regard to the viral-load tests, which attempt to use PCR for counting viruses, Mullis has stated: “Quantitative PCR is an oxymoron.” PCR is intended to identify substances qualitatively, but by its very nature is unsuited for estimating numbers. Although there is a common misimpression that the viral-load tests actually count the number of viruses in the blood, these tests cannot detect free, infectious viruses at all; they can only detect proteins that are believed, in some cases wrongly, to be unique to HIV. The tests can detect genetic sequences of viruses, but not viruses themselves.
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  • Now we are again reading similar terrorizing stories in the mass media, this time about Ebola–fears stoked by the pharma-industry-controlled WHO in Geneva under Director General Margaret Chan’s Scientific Advisory Group of Experts and their ties to Big Pharma giants, and the US Government Centers for Disease Control in Atlanta. What exactly is the Ebola test that is being used by doctors or health workers in Sierre Leone or Liberia to “prove” Ebola in a sick person? When the African man was re-hospitalized in Dallas, the head of the CDC, Tom Frieden, declared the patient was diagnosed with Ebola based on a test that is “highly accurate. It’s a PCR test of blood.” But that PCR test of blood is not highly accurate. Rather it is highly flawed. As Jon Rappoport points out, “Among the problems of the PCR test is that it is open to errors. Is the sample taken from the patient actually a virus or a piece of a virus? Or is just an irrelevant piece of debris? Another problem is inherent in the method of the PCR itself. The test is based on the amplification of a tiny, tiny speck of genetic material taken from a patient—blowing it up millions of times until it can be observed and analyzed. Researchers who employ the test claim that, as a result of the procedure, they can also infer the quantity of virus that is present in the patient. This is crucial, because unless a patient has millions and millions of Ebola virus in his body, there is absolutely no reason to think he is sick or will become sick.”
  • Nor can the Mullis PCR test count the number of Ebola viruses in a person’s blood. Yet the CDC claims, wrongly according to Mullis, that it can. Can it be that the entire Ebola fear campaign launched by Chan’s WHO and the CDC is based on fiction and a pharmaceutical industry ready to jab millions with their untested “Ebola vaccines”?
Paul Merrell

Feds identify suspected 'second leaker' for Snowden reporters - Yahoo News - 0 views

  • The FBI has identified an employee of a federal contracting firm suspected of being the so-called "second leaker" who turned over sensitive documents about the U.S. government's terrorist watch list to a journalist closely associated with ex-NSA contractor Edward Snowden, according to law enforcement and intelligence sources who have been briefed on the case. The FBI recently executed a search of the suspect's home, and federal prosecutors in Northern Virginia have opened up a criminal investigation into the matter, the sources said.
  • vestigative website co-founded by Glenn Greenwald, the reporter who first published sensitive NSA documents obtained from Snowden. Headlined "Barack Obama's Secret Terrorist-Tracking System, by the Numbers," the story cited a classified government document showing that nearly half the people on the U.S. government's master terrorist screening database had "no recognized terrorist affiliation."
  • The story, co-authored by Jeremy Scahill and Ryan Devereaux, was accompanied by a document "obtained from a source in the intelligence community" providing details about the watch-listing system that were dated as late as August 2013, months after Snowden fled to Hong Kong and revealed himself as the leaker of thousands of top secret documents from the NSA. This prompted immediate speculation that there was a "second leaker" inside the U.S. intelligence community providing material to Greenwald and his associates.
Paul Merrell

U.S. Sends Planes Armed with Depleted Uranium to Middle East | War Is A Crime .org - 0 views

  • The U.S. Air Force says it is not halting its use of Depleted Uranium weapons, has recently sent them to the Middle East, and is prepared to use them. A type of airplane, the A-10, deployed this month to the Middle East by the U.S. Air National Guard's 122nd Fighter Wing, is responsible for more Depleted Uranium (DU) contamination than any other platform, according to the International Coalition to Ban Uranium Weapons (ICBUW). "Weight for weight and by number of rounds more 30mm PGU-14B ammo has been used than any other round," said ICBUW coordinator Doug Weir, referring to ammunition used by A-10s, as compared to DU ammunition used by tanks.
  • The crews will load PGU-14 depleted uranium rounds into their 30mm Gatling cannons and use them as needed, said Hubble. "If the need is to explode something -- for example a tank -- they will be used."
  • On Thursday, several nations, including Iraq, spoke to the United Nations First Committee, against the use of Depleted Uranium and in support of studying and mitigating the damage in already contaminated areas. A non-binding resolution is expected to be voted on by the Committee this week, urging nations that have used DU to provide information on locations targeted. A number of organizations are delivering a petition to U.S. officials this week urging them not to oppose the resolution. In 2012 a resolution on DU was supported by 155 nations and opposed by just the UK, U.S., France, and Israel. Several nations have banned DU, and in June Iraq proposed a global treaty banning it -- a step also supported by the European and Latin American Parliaments.
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  • DU is classed as a Group 1 Carcinogen by the World Health Organization, and evidence of health damage produced by its use is extensive. The damage is compounded, Jeena Shah at the Center for Constitutional Rights (CCR) told me, when the nation that uses DU refuses to identify locations targeted. Contamination enters soil and water. Contaminated scrap metal is used in factories or made into cooking pots or played with by children. CCR and Iraq Veterans Against the War have filed a Freedom of Information Act Request in an attempt to learn the locations targeted in Iraq during and after the 1991 and 2003 assaults. The UK and the Netherlands have revealed targeted locations, Shah pointed out, as did NATO following DU use in the Balkans. And the United States has revealed locations it targeted with cluster munitions. So why not now?
  • "For years," Shah said, "the U.S. has denied a relationship between DU and health problems in civilians and veterans. Studies of UK veterans are highly suggestive of a connection. The U.S. doesn't want studies done." In addition, the United States has used DU in civilian areas and identifying those locations could suggest violations of Geneva Conventions.
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    Splattering radioactive depleted uranium around the globe is idiocy. The trick is to shut down nuclear power plants so they don't produce any more radioactive waste. Unless society decides it wants to foot the bill to shoot depleted nuclear fuel rods into the Sun. 
Paul Merrell

Division over bank as Australia caught between China and US | nsnbc international - 0 views

  • Senior cabinet ministers are believed to be divided over whether Australia should sign up to an internationally funded infrastructure development bank that China is set to launch next month.
  • Australia has been under pressure from the United States not to participate in the new bank. The position of Prime Minister Tony Abbott is unclear on the issue, that could have ramifications for the final days of bedding down the Australia-China free trade agreement which the government wants concluded this year and preferably by the G20 leaders meeting in Brisbane next month. The Chinese plan is being viewed internationally in the wider geopolitical context of Chinese-US competition in the region. The Americans, who see the bank as potentially a way of China increasing its clout with countries in southeast Asia, have been strongly lobbying Australia to keep out of it. The issue is to come before cabinet imminently, as China plans to announce the bank at the APEC summit, which will be held in Beijing in November. Hockey will be in Beijing next week for the APEC finance ministers meeting, where the bank will be a topic of discussion.
Paul Merrell

The Crisis in U.S.-Israel Relations Is Officially Here - The Atlantic - 0 views

  • The other day I was talking to a senior Obama administration official about the foreign leader who seems to frustrate the White House and the State Department the most. “The thing about Bibi is, he’s a chickenshit,” this official said, referring to the Israeli prime minister, Benjamin Netanyahu, by his nickname. This comment is representative of the gloves-off manner in which American and Israeli officials now talk about each other behind closed doors, and is yet another sign that relations between the Obama and Netanyahu governments have moved toward a full-blown crisis. The relationship between these two administrations— dual guarantors of the putatively “unbreakable” bond between the U.S. and Israel—is now the worst it's ever been, and it stands to get significantly worse after the November midterm elections. By next year, the Obama administration may actually withdraw diplomatic cover for Israel at the United Nations, but even before that, both sides are expecting a showdown over Iran, should an agreement be reached about the future of its nuclear program.
  • The fault for this breakdown in relations can be assigned in good part to the junior partner in the relationship, Netanyahu, and in particular, to the behavior of his cabinet. Netanyahu has told several people I’ve spoken to in recent days that he has “written off” the Obama administration, and plans to speak directly to Congress and to the American people should an Iran nuclear deal be reached. For their part, Obama administration officials express, in the words of one official, a “red-hot anger” at Netanyahu for pursuing settlement policies on the West Bank, and building policies in Jerusalem, that they believe have fatally undermined Secretary of State John Kerry’s peace process.
  • Over the years, Obama administration officials have described Netanyahu to me as recalcitrant, myopic, reactionary, obtuse, blustering, pompous, and “Aspergery.” (These are verbatim descriptions; I keep a running list.)  But I had not previously heard Netanyahu described as a “chickenshit.” I thought I appreciated the implication of this description, but it turns out I didn’t have a full understanding. From time to time, current and former administration officials have described Netanyahu as a national leader who acts as though he is mayor of Jerusalem, which is to say, a no-vision small-timer who worries mainly about pleasing the hardest core of his political constituency. (President Obama, in interviews with me, has alluded to Netanyahu’s lack of political courage.) “The good thing about Netanyahu is that he’s scared to launch wars,” the official said, expanding the definition of what a chickenshit Israeli prime minister looks like. “The bad thing about him is that he won’t do anything to reach an accommodation with the Palestinians or with the Sunni Arab states. The only thing he’s interested in is protecting himself from political defeat. He’s not [Yitzhak] Rabin, he’s not [Ariel] Sharon, he’s certainly no [Menachem] Begin. He’s got no guts.”
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    Netanyahu response is at http://goo.gl/bKA5TV
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