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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.   
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The ultimate goal of the NSA is total population control | Antony Loewenstein | Comment... - 0 views

  • William Binney is one of the highest-level whistleblowers to ever emerge from the NSA. He was a leading code-breaker against the Soviet Union during the Cold War but resigned soon after September 11, disgusted by Washington’s move towards mass surveillance.On 5 July he spoke at a conference in London organised by the Centre for Investigative Journalism and revealed the extent of the surveillance programs unleashed by the Bush and Obama administrations.
  • “At least 80% of fibre-optic cables globally go via the US”, Binney said. “This is no accident and allows the US to view all communication coming in. At least 80% of all audio calls, not just metadata, are recorded and stored in the US. The NSA lies about what it stores.”The NSA will soon be able to collect 966 exabytes a year, the total of internet traffic annually. Former Google head Eric Schmidt once argued that the entire amount of knowledge from the beginning of humankind until 2003 amount to only five exabytes.Binney, who featured in a 2012 short film by Oscar-nominated US film-maker Laura Poitras, described a future where surveillance is ubiquitous and government intrusion unlimited.“The ultimate goal of the NSA is total population control”, Binney said, “but I’m a little optimistic with some recent Supreme Court decisions, such as law enforcement mostly now needing a warrant before searching a smartphone.”
  • It shows that the NSA is not just pursuing terrorism, as it claims, but ordinary citizens going about their daily communications. “The NSA is mass-collecting on everyone”, Binney said, “and it’s said to be about terrorism but inside the US it has stopped zero attacks.”The lack of official oversight is one of Binney’s key concerns, particularly of the secret Foreign Intelligence Surveillance Court (Fisa), which is held out by NSA defenders as a sign of the surveillance scheme's constitutionality.“The Fisa court has only the government’s point of view”, he argued. “There are no other views for the judges to consider. There have been at least 15-20 trillion constitutional violations for US domestic audiences and you can double that globally.”
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  • He praised the revelations and bravery of former NSA contractor Edward Snowden and told me that he had indirect contact with a number of other NSA employees who felt disgusted with the agency’s work. They’re keen to speak out but fear retribution and exile, not unlike Snowden himself, who is likely to remain there for some time.
  • Binney recently told the German NSA inquiry committee that his former employer had a “totalitarian mentality” that was the "greatest threat" to US society since that country’s US Civil War in the 19th century. Despite this remarkable power, Binney still mocked the NSA’s failures, including missing this year’s Russian intervention in Ukraine and the Islamic State’s take-over of Iraq.The era of mass surveillance has gone from the fringes of public debate to the mainstream, where it belongs. The Pew Research Centre released a report this month, Digital Life in 2025, that predicted worsening state control and censorship, reduced public trust, and increased commercialisation of every aspect of web culture.It’s not just internet experts warning about the internet’s colonisation by state and corporate power. One of Europe’s leading web creators, Lena Thiele, presented her stunning series Netwars in London on the threat of cyber warfare. She showed how easy it is for governments and corporations to capture our personal information without us even realising.Thiele said that the US budget for cyber security was US$67 billion in 2013 and will double by 2016. Much of this money is wasted and doesn't protect online infrastructure. This fact doesn’t worry the multinationals making a killing from the gross exaggeration of fear that permeates the public domain.
  • Wikileaks understands this reality better than most. Founder Julian Assange and investigative editor Sarah Harrison both remain in legal limbo. I spent time with Assange in his current home at the Ecuadorian embassy in London last week, where he continues to work, release leaks, and fight various legal battles. He hopes to resolve his predicament soon.At the Centre for Investigative Journalism conference, Harrison stressed the importance of journalists who work with technologists to best report the NSA stories. “It’s no accident”, she said, “that some of the best stories on the NSA are in Germany, where there’s technical assistance from people like Jacob Appelbaum.” A core Wikileaks belief, she stressed, is releasing all documents in their entirety, something the group criticised the news site The Intercept for not doing on a recent story. “The full archive should always be published”, Harrison said.
  • With 8m documents on its website after years of leaking, the importance of publishing and maintaining source documents for the media, general public and court cases can’t be under-estimated. “I see Wikileaks as a library”, Assange said. “We’re the librarians who can’t say no.”With evidence that there could be a second NSA leaker, the time for more aggressive reporting is now. As Binney said: “I call people who are covering up NSA crimes traitors”.
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Germany asks CIA station chief to leave over spying allegations - The Washington Post - 0 views

  • The German government ordered the CIA’s top officer in Berlin to leave the country Thursday in an extraordinary escalation of a conflict between the two allies over American espionage. The move amounts to a high-profile expression of German anger over alleged CIA operations uncovered by German investigators in recent weeks, as well as continued public outrage over the exposure last year of widespread U.S. surveillance programs whose targets included Chancellor Angela Merkel. A spokesman for the German government, Steffen Seibert, confirmed the expulsion of the CIA station chief in a statement that made clear Berlin regards U.S. espionage efforts as a breach of trust.
  • The decision means that the United States will be forced to withdraw an officer who oversees U.S. spying programs in Germany but also serves as the main point of contact with German intelligence services — exchanging information on subjects ranging from terrorist plots to Iranian nuclear ambitions. In ordering the CIA station chief to leave, Germany resorted to a form of retaliation that is occasionally employed by determined espionage adversaries — such as the United States and Russia — but rarely by such a close ally.
  • Before ordering him out, Germany “had to make a calculation of what they were going to lose — they get a substantial amount of intelligence from us,” said a senior former U.S. intelligence official who worked closely with Berlin and spoke on the condition of anonymity because of the sensitivity of the subject. “There will be people in the [U.S.] intelligence community who will want to say, ‘That’s it.’ ” Former U.S. officials said the agency pulled back on certain spying operations last year amid concern about the fallout from the Edward Snowden leaks. At the same time, the former officials said, the latest arrest and raids indicate that Germany has stepped up its defenses and efforts to root out U.S. spies. Even before the expulsion, U.S. officials said espionage-related frictions with Germany had hurt diplomatic relations with an ally the United States has relied on for support in a series of security matters, including efforts to contain Russian aggression in Ukraine.
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    O.K. Now how do we boot the CIA out of America?
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CIA admits to spying on Senate staffers | World news | The Guardian - 0 views

  • The director of the Central Intelligence Agency, John Brennan, issued an extraordinary apology to leaders of the US Senate intelligence committee on Thursday, conceding that the agency employees spied on committee staff and reversing months of furious and public denials. Brennan acknowledged that an internal investigation had found agency security personnel transgressed a firewall set up on a CIA network, which allowed Senate committee investigators to review agency documents for their landmark inquiry into CIA torture. Among other things, it was revealed that agency officials conducted keyword searches and email searches on committee staff while they used the network.The admission brings Brennan’s already rocky tenure at the head of the CIA under renewed question. One senator on the panel said he had lost confidence in the director, although the White House indicated its support for a man who has been one of Barack Obama’s most trusted security aides.
  • CIA spokesman Dean Boyd acknowledged that agency staff had improperly monitored the computers of committee staff members, who were using a network the agency had set up, called RDINet. “Some CIA employees acted in a manner inconsistent with the common understanding reached between [the committee] and the CIA in 2009 regarding access to the RDINet,” he said.Asked if Brennan had or would offer his resignation, a different CIA spokesman, Ryan Trapani, replied: “No.”
  • McClatchy first reported the apology on Thursday.
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    A bit more detail on what CIA admits to doing. 
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Iran 1953: US Envoy to Baghdad Suggested to Fleeing Shah He Not Acknowledge Foreign Rol... - 0 views

  • On August 16, 1953, the same day the Shah of Iran fled to Baghdad after a failed attempt to oust Prime Minister Mohammad Mosaddeq, the agitated monarch spoke candidly about his unsettling experience to the U.S. ambassador to Iraq. In a highly classified cable to Washington, the ambassador reported: "I found Shah worn from three sleepless nights, puzzled by turn of events, but with no (repeat no) bitterness toward Americans who had urged and planned action. I suggested for his prestige in Iran he never indicate that any foreigner had had a part in recent events. He agreed." Despite the passage of more than six decades, fundamental questions persist about Mosaddeq's overthrow, including who was responsible for this milestone event in Iranian history. The above cable, which was previously published but with these key passages excised for secrecy reasons, is one of several important pieces of evidence pointing to the United States role. Nevertheless, the question of how important the U.S. and British were in the events of 1953 has recently come under intensified scrutiny. An article in the July/August 2014 issue of Foreign Affairs by noted Iran analyst Ray Takeyh is the latest in a series of analyses by respected scholars who conclude Iranians, not the CIA or British intelligence, were fundamentally responsible.
  • In the course of explaining "What Really Happened in Iran," however, the piece spotlights some of the risks of writing about such sensitive historical events, particularly when they involve covert intelligence operations. In particular — how do you know when to trust your sources? Today's brief posting is by no means a full assessment or refutation of this argument. (In the interests of disclosure, the author believes the evidence shows that both the CIA — with British help — and Iranians themselves were critical in their own ways to the end result[1]). Instead, the posting mainly points out one of the peculiar challenges confronting historians of 1953, especially on the question of the U.S. and British roles. The challenge is simply that U.S. and British reporting about the coup cannot be taken strictly at face value. The main reason is secrecy. President Eisenhower underscored the need for confidentiality in a diary entry from the time. Dated October 8, 1953, but referring back to August 19, Eisenhower notes: "Another recent development that we helped bring about was the restoration of the Shah to power in Iran and the elimination of Mossadegh. The things we did were 'covert.' If knowledge of them became public, we would not only be embarrassed in that region, but our chances to do anything of like nature in the future would almost totally disappear." (See Document 1)
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U.S. hits oil giant Rosneft, other firms with toughest Russia sanctions - 0 views

  • President Barack Obama imposed the biggest package of U.S. economic sanctions yet on Russia on Wednesday, hitting Russia's largest oil producer Rosneft and other energy, financial and defense firms, with what he called significant but targeted penalties. Obama's latest round of sanctions came after close consultations with European leaders, who announced a less-ambitious package. The ultimate impact of the U.S. sanctions likely depends on whether the European Union follows suit. The extent of the sanctions against key parts of the Russian energy and financial industry, including Gazprombank , was intended to serve notice to Moscow that its refusal to curb violence in eastern Ukraine has consequences. The targeted companies also include Russia's second-largest gas producer, Novatek, Vnesheconombank, or VEB, a state-owned bank that acts as payment agent for the Russian government, and eight arms firms.
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    Note that the violence in eastern Ukraine has been launched by the U.S.-backed coup government of Ukraine. 
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The Digital Hunt for Duqu, a Dangerous and Cunning U.S.-Israeli Spy Virus - The Intercept - 0 views

  • “Is this related to what we talked about before?” Bencsáth said, referring to a previous discussion they’d had about testing new services the company planned to offer customers. “No, something else,” Bartos said. “Can you come now? It’s important. But don’t tell anyone where you’re going.” Bencsáth wolfed down the rest of his lunch and told his colleagues in the lab that he had a “red alert” and had to go. “Don’t ask,” he said as he ran out the door. A while later, he was at Bartos’ office, where a triage team had been assembled to address the problem they wanted to discuss. “We think we’ve been hacked,” Bartos said.
  • They found a suspicious file on a developer’s machine that had been created late at night when no one was working. The file was encrypted and compressed so they had no idea what was inside, but they suspected it was data the attackers had copied from the machine and planned to retrieve later. A search of the company’s network found a few more machines that had been infected as well. The triage team felt confident they had contained the attack but wanted Bencsáth’s help determining how the intruders had broken in and what they were after. The company had all the right protections in place—firewalls, antivirus, intrusion-detection and -prevention systems—and still the attackers got in.
  • Bencsáth was a teacher, not a malware hunter, and had never done such forensic work before. At the CrySyS Lab, where he was one of four advisers working with a handful of grad students, he did academic research for the European Union and occasional hands-on consulting work for other clients, but the latter was mostly run-of-the-mill cleanup work—mopping up and restoring systems after random virus infections. He’d never investigated a targeted hack before, let alone one that was still live, and was thrilled to have the chance. The only catch was, he couldn’t tell anyone what he was doing. Bartos’ company depended on the trust of customers, and if word got out that the company had been hacked, they could lose clients. The triage team had taken mirror images of the infected hard drives, so they and Bencsáth spent the rest of the afternoon poring over the copies in search of anything suspicious. By the end of the day, they’d found what they were looking for—an “infostealer” string of code that was designed to record passwords and other keystrokes on infected machines, as well as steal documents and take screenshots. It also catalogued any devices or systems that were connected to the machines so the attackers could build a blueprint of the company’s network architecture. The malware didn’t immediately siphon the stolen data from infected machines but instead stored it in a temporary file, like the one the triage team had found. The file grew fatter each time the infostealer sucked up data, until at some point the attackers would reach out to the machine to retrieve it from a server in India that served as a command-and-control node for the malware.
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  • Bencsáth took the mirror images and the company’s system logs with him, after they had been scrubbed of any sensitive customer data, and over the next few days scoured them for more malicious files, all the while being coy to his colleagues back at the lab about what he was doing. The triage team worked in parallel, and after several more days they had uncovered three additional suspicious files. When Bencsáth examined one of them—a kernel-mode driver, a program that helps the computer communicate with devices such as printers—his heart quickened. It was signed with a valid digital certificate from a company in Taiwan (digital certificates are documents ensuring that a piece of software is legitimate). Wait a minute, he thought. Stuxnet—the cyberweapon that was unleashed on Iran’s uranium-enrichment program—also used a driver that was signed with a certificate from a company in Taiwan. That one came from RealTek Semiconductor, but this certificate belonged to a different company, C-Media Electronics. The driver had been signed with the certificate in August 2009, around the same time Stuxnet had been unleashed on machines in Iran.
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The Feds & Media: How the FBI Destroyed Journalism | nsnbc international - 0 views

  • James Comey, director of the Federal Bureau of Investigations (FBI) defended the use of an FBI agent posing as an Associated Press journalist in order to install spyware into the computer of a teenager from Lacy, Washington State.
  • Comey said in an open letter published in mainstream media that the FBI did not “overstep its bounds” while using deceptive tactics during their investigation into the teen who was in communication “online with the” FBI agent.” According to Comey: “An F.B.I. agent communicated online with the anonymous suspect. Relying on an agency behavioral assessment that the anonymous suspect was a narcissist, the online undercover officer portrayed himself as an employee of The Associated Press, and asked if the suspect would be willing to review a draft article about the threats and attacks, to be sure that the anonymous suspect was portrayed fairly.” To entrap the student, the FBI produced a fake news report provided by the FBI agent to the Associated Press regarding a “technology savvy student holds Timberline High School hostage.”
  • The Reporters Committee for Freedom of the Press (RCFP) wrote a letter to Holder and Comey explaining : “The warrant for such action apparently did not mention that the tracker was delivered as an AP article, with an AP byline “and therefore impersonated a news media organization.” Concerned that the FBI not only failed to follow its own guidelines for such activity, but also did not make clear to the judge who signed the warrant or FBI counsel that the software ‘impersonated a media organization or that there were First Amendment concerns at stake’.”
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  • The FBI agent made sure the teen saw the article which facilitated the downloading of spyware into the boy’s computer in order to track the child’s online whereabouts. Kathy Best, executive editor of the Seattle Times commented : “The FBI, in placing the name of The Associated Press on a phony story sent to a criminal suspect, crossed a line and undermined the credibility of journalists everywhere – including at The Times.” The FBI maintains that “the operation was aimed at preventing tragedy. We were fortunate that information provided by the public gave us the opportunity to step into a potentially dangerous situation before it was too late.” Kathleen Carroll, executive editor of AP said : “This latest revelation of how the FBI misappropriated the trusted name of the Associated Press doubles our concern and outrage, expressed earlier to Attorney General Eric Holder, about how the agency’s unacceptable tactics undermine AP and the vital distinction between the government and the press.”
  • The RCFP continued in their letter: “The utilization of news media as a cover for delivery of electronic surveillance software is unacceptable. This practice endangers the media’s credibility and creates the appearance that it is not independent of the government. It undermines media organizations’ ability to independently report on law enforcement.” Ironically, the FBI have a program targeting teenagers called, “The FBI Teen Reporter’s Workshop” where “selected” high school students in New York are brought to the FBI field office to “learn about how the FBI interacts with the media. In addition to hearing about the overall mission of the FBI and the mission of the Office of Public Affairs, the teens have the opportunity to meet members of the media and to take photos with FBI equipment.”
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Currency Wars - Russia Buys 20.7 Tonnes Of Gold In December; Netherlands Refutes IMF Go... - 0 views

  • Russia raised its gold reserves for a ninth straight month in December as the country continued its multi month gold buying spree, adding to the fifth-biggest gold holdings in the world, data from the IMF showed yesterday.  Russia continues to dollar cost average into gold and increased its bullion holdings by another hefty 20.73 tonnes to 1,208.23 tonnes in December. The December figure for Russia, who have the fifth largest reserves in the world, brings their officially stated reserves to 1208.23 tonnes. If this trend were to continue their officially stated reserves would increase 20.6% this year.
  • Given that Russia perceives itself to be under financial and economic attack from the West, there is the possibility that they are accumulating more gold than they are declaring officially to the IMF. This is what the People’s Bank of China (PBOC) has been doing in recent years and there is little reason why Russia may not adopt the Chinese practice of not being transparent in this regard. The Chinese government have been surreptitiously accumulating vast quantities of the metal in recent years and there is no reason to believe this buying will end in the coming months as geopolitical and monetary risks intensify. Western central banks seem to be balking at what will be seen as the disastrous policy of dumping the gold owned by their populations onto the market. The Gold Anti Trust Action Committee (GATA) have documented how this was done in order to suppress gold prices, in a bid to support and maintain faith in the dollar as reserve currency. Already there are strong movements across Europe to have sovereign gold stored domestically. The German and Dutch central banks have recently reported the repatriation of large volumes of their gold being held by central banks of foreign nations.
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Guantánamo hearing halted by supposed CIA 'black site' worker serving as war ... - 0 views

  • The 9/11 trial judge abruptly recessed the first hearing in the case since August on Monday after some of the alleged Sept. 11 plotters said they recognized a war court linguist as a former secret CIA prison worker.Alleged plot deputy Ramzi bin al Shibh, 42, made the revelation just moments into the hearing by informing the judge he had a problem with his courtroom translator. The interpreter, Bin al Shibh claimed, worked for the CIA during his 2002 through 2006 detention at a so-called “Black Site.”“The problem is I cannot trust him because he was working at the black site with the CIA, and we know him from there,” he said.This week’s is the first hearing for the five men accused of conspiring in the Sept. 11, 2001 attacks — that killed nearly 3,000 people in New York, the Pentagon and Pennsylvania — since the public release of portions of a sweeping Senate Intelligence Committee study of the agency’s secret prisons known as “The Torture Report.”
  • Instead the issue became, apparently, a stony-faced translator who was sitting alongside Bin al Shibh in court when the hearing started. Lawyers for the alleged mastermind, Khalid Sheik Mohammed, 49, and his nephew, Ammar al Baluchi, 37, said they learned about the recognition just as court began. The judge ordered a quick recess, excused Campoamor-Sanchez and summoned the chief prosecutor, Army Brig. Gen. Mark Martins, for questioning.Court resumed briefly with the linguist missing. Martins sought, and got, a continuing recess until 9 a.m. Wednesday, to look into the issue and file a written pleading with the court. Pleadings are sealed for at least 15 days for intelligence agencies’ scrub of secret information.Mohammed’s attorney, David Nevin, asked Pohl to order the suspected CIA worker to not leave this remote base in southeast Cuba and to submit to defense questioning.
  • Cheryl Bormann, attorney for another alleged plotter, Walid bin Attash, 36, told the judge, Army Col. James L. Pohl, that her client “was visibly shaken” at recognizing a man in the maximum-security war court.“My client relayed to me this morning that there is somebody in this courtroom who was participating in his illegal torture,” she said.Bormann said it was either “the biggest coincidence ever” or “part of the pattern of the infiltration of defense teams.” Monday’s hearing was supposed to start with a presentation by a Justice Department lawyer, Fernando Campoamor-Sanchez, on FBI agents secretly questioning members of the Bin al Shibh defense team. The Sept. 11 legal defense teams have called the FBI’s action spying on privileged attorney-client conversations.
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  • War court translators are provided by one of two Defense Department contractors paid by the Pentagon unit that runs the war court, called the Office of the Convening Authority for Military Commissions. It’s run by retired Marine Maj. Gen. Vaughn Ary, a former military lawyer. The contractors are Leidos and All World.Ary’s office provides a list of qualified translators to the Office of Military Commissions Defense unit, and, in the capital cases, each one gets a dedicated translator assigned to the team. Teams can object to the choice, and have done so in the past, as unsuitable, according to earlier war court sessions.The war court’s Chief Defense Counsel, Air Force Col. Karen Mayberry, said after the court session Monday that the translator sitting with Bin al Shibh in court was not permanently assigned to his team, or the 9/11 case. The Bin al Shibh team had lost its translator after an FBI investigation secretly questioned Sept. 11 defense team members. Monday’s translator, the one that Bin al Shibh said he recognized from a CIA prison, had worked for years on war court defense teams, but none with the Sept. 11 death-penalty case, according to Mayberry. Monday’s translator was filling in for this session because, although the Bin al Shibh team had chosen a new team translator, the new permanent translator had not yet gotten a security clearance, which can be a lengthy process.
  • Bin al Shibh and the other four men are accused of helping to orchestrate, train, and arrange travel for the 19 men who hijacked four U.S. passenger aircraft on Sept. 11, 2001. The prosecutor is seeking their execution, if they are convicted. The CIA held and interrogated them for three to four years in secret overseas prisons before they were brought to Guantánamo in September 2006. But even once they got here, they continued to be in CIA custody, according to the Senate report. Jay Connell, attorney for Baluchi, 37, said Sunday it is still not known when the agency relinquished control of the men, who are held in a secret prison called Camp 7.
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Yellowstone Oil Spills Expose Threat to Pipelines Under Rivers Nationwide | Inside Clim... - 0 views

  • At the time the Poplar pipeline ruptured, about 110 feet of it was completely uncovered along the bottom of the Yellowstone River, exposing it to damage.
  • Bridger Pipeline LLC was so sure its Poplar oil line was safely buried below the Yellowstone River that it planned to wait five years to recheck it. But last month, 3.5 years later, the Poplar wasn't eight feet under the river anymore. It was substantially exposed on the river bottom—and leaking more than 30,000 gallons of oil upstream from Glendive, Montana. An ExxonMobil pipeline wasn't buried deeply enough for the Yellowstone River, either. High floodwaters in 2011 uncovered the Silvertip pipe, leaving it defenseless against the fast-moving current and traveling debris. It broke apart in July, and sent 63,000 gallons of oil into the river near Laurel, Montana.
  • Both companies underestimated the river's power and its penchant for scouring away the earth that's covering and protecting their pipelines. That miscalculation led to the Exxon Silvertip spill and it's likely to be declared a significant factor, at a minimum, in the Poplar spill. Such misjudgments have potentially troubling implications nationwide, since pipelines carrying crude oil and petroleum products pass beneath rivers and other bodies of water in more than 18,000 places across America. Many of them are buried only a few feet below the water. "There were a lot of people who wanted to think that the last pipeline spill in the Yellowstone River in 2011 was a freak accident that would never happen again. After this most recent spill, no one believes that anymore," said Scott Bosse, Northern Rockies director for American Rivers. "The truth is, there are probably hundreds of pipelines across the country that are at considerable risk of rupturing under our rivers."
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  • While corrosion is the No. 1 cause of pipeline spills, a sizable number of pipelines at water crossings have ruptured or been endangered by river scour. Among them: ► The Poplar (Jan. 2015) and Silvertip (July 2011) pipeline failures on the Yellowstone River. ► More than 20 pipeline river crossings in Montana were found to be "dangerously close to exposure" during inspections of nearly 90 pipeline crossings in 2011, according to one report. Many of them have since been reburied significantly deeper. The Poplar pipeline was not among the crossings tagged as being close to exposure. ► Nearly half of the 55 oil and gas pipelines that cross the Missouri River were found to have sections buried 10 feet or less below the riverbed, according to the Wall Street Journal. A study by the U.S. Geological Survey, meanwhile, found that the Missouri riverbed had deepened by nine to 41 feet in 27 places because of severe scouring during the 2011 floods. ► An Enterprise Products Partners LLP pipeline that was uncovered by river scouring and ruptured in August 2011. The line spilled more than 28,350 gallons of a gasoline additive into the Missouri River in Iowa. ► A June 2012 spill in Alberta, Canada, where an oil pipeline owned by Plains Midstream Canada failed along the Red Deer River and released more than 122,000 gallons of light crude. Investigators concluded that the pipe was uncovered by scour during high flood waters and subjected to vibrations from the river flow that led a weld to fail.
  • Three Enbridge Corp. crude oil pipelines crossing Minnesota's Tamarac River were exposed by floodwater erosion years ago, and were still exposed in mid-2014. None of the pipes had failed at that point, but one was being propped up by steel legs, according to an MPR News account. Federal regulations aren't much help. The only rule that addresses pipe burial at major river crossings requires petroleum pipelines to be laid at least four feet below the riverbed at the time of construction. Once a pipeline's installed, there are no requirements regarding burial depth. There is no rule requiring exposed pipelines to be reburied, though a spill under those conditions would invite regulatory penalties for leaving the line exposed to hazards. What's more, federal rules put the pipeline companies in charge of identifying all threats that could cause a spill in highly populated or environmentally sensitive areas, and the companies get wide latitude in deciding what to do about them, according to Rebecca Craven, program manager at the Pipeline Safety Trust, a nonprofit group that tracks pipeline risks and regulations.
  • Indeed, the required four-foot minimum initial burial depth for pipelines can be completely eliminated by natural erosion over time or by a single flood event. Active free-flowing rivers can carve with enough ferocity to lower their riverbeds by 20 feet or shift the waterway onto an entirely new path, which can add new stresses to the pipeline or put the river over pipe that has less cover or lacks reinforcement or protective cement casings. The hotly debated Keystone XL oil pipeline project would cross nearly 2,000 rivers, streams and reservoirs in Montana, South Dakota and Nebraska, according to one estimate. The route takes the pipe across the Missouri and Yellowstone rivers, where owner TransCanada has pledged to install the pipeline 35 feet below the riverbeds.
  • See Also: Ruptured Yellowstone Oil Pipeline Was Built With Faulty Welding in 1950sIce Hinders Cleanup of Yellowstone Oil Pipeline SpillExxon Overlooked, Masked Safety Threats in Years Before Pegasus Pipeline BurstDilbit in Exxon's Pegasus May Have Contributed to Pipeline's Rupture
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    One of the hidden costs of oil dependence. 
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Edward Snowden: A 'Nation' Interview | The Nation - 0 views

  • Snowden: That’s the key—to maintain the garden of liberty, right? This is a generational thing that we must all do continuously. We only have the rights that we protect. It doesn’t matter what we say or think we have. It’s not enough to believe in something; it matters what we actually defend. So when we think in the context of the last decade’s infringements upon personal liberty and the last year’s revelations, it’s not about surveillance. It’s about liberty. When people say, “I have nothing to hide,” what they’re saying is, “My rights don’t matter.” Because you don’t need to justify your rights as a citizen—that inverts the model of responsibility. The government must justify its intrusion into your rights. If you stop defending your rights by saying, “I don’t need them in this context” or “I can’t understand this,” they are no longer rights. You have ceded the concept of your own rights. You’ve converted them into something you get as a revocable privilege from the government, something that can be abrogated at its convenience. And that has diminished the measure of liberty within a society.
  • From the very beginning, I said there are two tracks of reform: there’s the political and the technical. I don’t believe the political will be successful, for exactly the reasons you underlined. The issue is too abstract for average people, who have too many things going on in their lives. And we do not live in a revolutionary time. People are not prepared to contest power. We have a system of education that is really a sort of euphemism for indoctrination. It’s not designed to create critical thinkers. We have a media that goes along with the government by parroting phrases intended to provoke a certain emotional response—for example, “national security.” Everyone says “national security” to the point that we now must use the term “national security.” But it is not national security that they’re concerned with; it is state security. And that’s a key distinction. We don’t like to use the phrase “state security” in the United States because it reminds us of all the bad regimes. But it’s a key concept, because when these officials are out on TV, they’re not talking about what’s good for you. They’re not talking about what’s good for business. They’re not talking about what’s good for society. They’re talking about the protection and perpetuation of a national state system. I’m not an anarchist. I’m not saying, “Burn it to the ground.” But I’m saying we need to be aware of it, and we need to be able to distinguish when political developments are occurring that are contrary to the public interest. And that cannot happen if we do not question the premises on which they’re founded. And that’s why I don’t think political reform is likely to succeed. [Senators] Udall and Wyden, on the intelligence committee, have been sounding the alarm, but they are a minority.
  • The Nation: Every president—and this seems to be confirmed by history—will seek to maximize his or her power, and will see modern-day surveillance as part of that power. Who is going to restrain presidential power in this regard? Snowden: That’s why we have separate and co-equal branches. Maybe it will be Congress, maybe not. Might be the courts, might not. But the idea is that, over time, one of these will get the courage to do so. One of the saddest and most damaging legacies of the Bush administration is the increased assertion of the “state secrets” privilege, which kept organizations like the ACLU—which had cases of people who had actually been tortured and held in indefinite detention—from getting their day in court. The courts were afraid to challenge executive declarations of what would happen. Now, over the last year, we have seen—in almost every single court that has had this sort of national-security case—that they have become markedly more skeptical. People at civil-liberties organizations say it’s a sea change, and that it’s very clear judges have begun to question more critically assertions made by the executive. Even though it seems so obvious now, it is extraordinary in the context of the last decade, because courts had simply said they were not the best branch to adjudicate these claims—which is completely wrong, because they are the only nonpolitical branch. They are the branch that is specifically charged with deciding issues that cannot be impartially decided by politicians. The power of the presidency is important, but it is not determinative. Presidents should not be exempted from the same standards of reason and evidence and justification that any other citizen or civil movement should be held to.
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  • The Nation: Explain the technical reform you mentioned. Snowden: We already see this happening. The issue I brought forward most clearly was that of mass surveillance, not of surveillance in general. It’s OK if we wiretap Osama bin Laden. I want to know what he’s planning—obviously not him nowadays, but that kind of thing. I don’t care if it’s a pope or a bin Laden. As long as investigators must go to a judge—an independent judge, a real judge, not a secret judge—and make a showing that there’s probable cause to issue a warrant, then they can do that. And that’s how it should be done. The problem is when they monitor all of us, en masse, all of the time, without any specific justification for intercepting in the first place, without any specific judicial showing that there’s a probable cause for that infringement of our rights.
  • Since the revelations, we have seen a massive sea change in the technological basis and makeup of the Internet. One story revealed that the NSA was unlawfully collecting data from the data centers of Google and Yahoo. They were intercepting the transactions of data centers of American companies, which should not be allowed in the first place because American companies are considered US persons, sort of, under our surveillance authorities. They say, “Well, we were doing it overseas,” but that falls under a different Reagan-era authority: EO 12333, an executive order for foreign-intelligence collection, as opposed to the ones we now use domestically. So this one isn’t even authorized by law. It’s just an old-ass piece of paper with Reagan’s signature on it, which has been updated a couple times since then. So what happened was that all of a sudden these massive, behemoth companies realized their data centers—sending hundreds of millions of people’s communications back and forth every day—were completely unprotected, electronically naked. GCHQ, the British spy agency, was listening in, and the NSA was getting the data and everything like that, because they could dodge the encryption that was typically used. Basically, the way it worked technically, you go from your phone to Facebook.com, let’s say—that link is encrypted. So if the NSA is trying to watch it here, they can’t understand it. But what these agencies discovered was, the Facebook site that your phone is connected to is just the front end of a larger corporate network—that’s not actually where the data comes from. When you ask for your Facebook page, you hit this part and it’s protected, but it has to go on this long bounce around the world to actually get what you’re asking for and go back. So what they did was just get out of the protected part and they went onto the back network. They went into the private network of these companies.
  • The Nation: The companies knew this? Snowden: Companies did not know it. They said, “Well, we gave the NSA the front door; we gave you the PRISM program. You could get anything you wanted from our companies anyway—all you had to do was ask us and we’re gonna give it to you.” So the companies couldn’t have imagined that the intelligence communities would break in the back door, too—but they did, because they didn’t have to deal with the same legal process as when they went through the front door. When this was published by Barton Gellman in The Washington Post and the companies were exposed, Gellman printed a great anecdote: he showed two Google engineers a slide that showed how the NSA was doing this, and the engineers “exploded in profanity.” Another example—one document I revealed was the classified inspector general’s report on a Bush surveillance operation, Stellar Wind, which basically showed that the authorities knew it was unlawful at the time. There was no statutory basis; it was happening basically on the president’s say-so and a secret authorization that no one was allowed to see. When the DOJ said, “We’re not gonna reauthorize this because it is not lawful,” Cheney—or one of Cheney’s advisers—went to Michael Hayden, director of the NSA, and said, “There is no lawful basis for this program. DOJ is not going to reauthorize it, and we don’t know what we’re going to do. Will you continue it anyway on the president’s say-so?” Hayden said yes, even though he knew it was unlawful and the DOJ was against it. Nobody has read this document because it’s like twenty-eight pages long, even though it’s incredibly important.
  • The big tech companies understood that the government had not only damaged American principles, it had hurt their businesses. They thought, “No one trusts our products anymore.” So they decided to fix these security flaws to secure their phones. The new iPhone has encryption that protects the contents of the phone. This means if someone steals your phone—if a hacker or something images your phone—they can’t read what’s on the phone itself, they can’t look at your pictures, they can’t see the text messages you send, and so forth. But it does not stop law enforcement from tracking your movements via geolocation on the phone if they think you are involved in a kidnapping case, for example. It does not stop law enforcement from requesting copies of your texts from the providers via warrant. It does not stop them from accessing copies of your pictures or whatever that are uploaded to, for example, Apple’s cloud service, which are still legally accessible because those are not encrypted. It only protects what’s physically on the phone. This is purely a security feature that protects against the kind of abuse that can happen with all these things being out there undetected. In response, the attorney general and the FBI director jumped on a soap box and said, “You are putting our children at risk.”
  • The Nation: Is there a potential conflict between massive encryption and the lawful investigation of crimes? Snowden: This is the controversy that the attorney general and the FBI director were trying to create. They were suggesting, “We have to be able to have lawful access to these devices with a warrant, but that is technically not possible on a secure device. The only way that is possible is if you compromise the security of the device by leaving a back door.” We’ve known that these back doors are not secure. I talk to cryptographers, some of the leading technologists in the world, all the time about how we can deal with these issues. It is not possible to create a back door that is only accessible, for example, to the FBI. And even if it were, you run into the same problem with international commerce: if you create a device that is famous for compromised security and it has an American back door, nobody is gonna buy it. Anyway, it’s not true that the authorities cannot access the content of the phone even if there is no back door. When I was at the NSA, we did this every single day, even on Sundays. I believe that encryption is a civic responsibility, a civic duty.
  • The Nation: Some years ago, The Nation did a special issue on patriotism. We asked about a hundred people how they define it. How do you define patriotism? And related to that, you’re probably the world’s most famous whistleblower, though you don’t like that term. What characterization of your role do you prefer? Snowden: What defines patriotism, for me, is the idea that one rises to act on behalf of one’s country. As I said before, that’s distinct from acting to benefit the government—a distinction that’s increasingly lost today. You’re not patriotic just because you back whoever’s in power today or their policies. You’re patriotic when you work to improve the lives of the people of your country, your community and your family. Sometimes that means making hard choices, choices that go against your personal interest. People sometimes say I broke an oath of secrecy—one of the early charges leveled against me. But it’s a fundamental misunderstanding, because there is no oath of secrecy for people who work in the intelligence community. You are asked to sign a civil agreement, called a Standard Form 312, which basically says if you disclose classified information, they can sue you; they can do this, that and the other. And you risk going to jail. But you are also asked to take an oath, and that’s the oath of service. The oath of service is not to secrecy, but to the Constitution—to protect it against all enemies, foreign and domestic. That’s the oath that I kept, that James Clapper and former NSA director Keith Alexander did not. You raise your hand and you take the oath in your class when you are on board. All government officials are made to do it who work for the intelligence agencies—at least, that’s where I took the oath.
  • The Nation: Creating a new system may be your transition, but it’s also a political act. Snowden: In case you haven’t noticed, I have a somewhat sneaky way of effecting political change. I don’t want to directly confront great powers, which we cannot defeat on their terms. They have more money, more clout, more airtime. We cannot be effective without a mass movement, and the American people today are too comfortable to adapt to a mass movement. But as inequality grows, the basic bonds of social fraternity are fraying—as we discussed in regard to Occupy Wall Street. As tensions increase, people will become more willing to engage in protest. But that moment is not now.
  • The Nation: You really think that if you could go home tomorrow with complete immunity, there wouldn’t be irresistible pressure on you to become a spokesperson, even an activist, on behalf of our rights and liberties? Indeed, wouldn’t that now be your duty? Snowden: But the idea for me now—because I’m not a politician, and I do not think I am as effective in this way as people who actually prepare for it—is to focus on technical reform, because I speak the language of technology. I spoke with Tim Berners-Lee, the guy who invented the World Wide Web. We agree on the necessity for this generation to create what he calls the Magna Carta for the Internet. We want to say what “digital rights” should be. What values should we be protecting, and how do we assert them? What I can do—because I am a technologist, and because I actually understand how this stuff works under the hood—is to help create the new systems that reflect our values. Of course I want to see political reform in the United States. But we could pass the best surveillance reforms, the best privacy protections in the history of the world, in the United States, and it would have zero impact internationally. Zero impact in China and in every other country, because of their national laws—they won’t recognize our reforms; they’ll continue doing their own thing. But if someone creates a reformed technical system today—technical standards must be identical around the world for them to function together.
  • As for labeling someone a whistleblower, I think it does them—it does all of us—a disservice, because it “otherizes” us. Using the language of heroism, calling Daniel Ellsberg a hero, and calling the other people who made great sacrifices heroes—even though what they have done is heroic—is to distinguish them from the civic duty they performed, and excuses the rest of us from the same civic duty to speak out when we see something wrong, when we witness our government engaging in serious crimes, abusing power, engaging in massive historic violations of the Constitution of the United States. We have to speak out or we are party to that bad action.
  • The Nation: Considering your personal experience—the risks you took, and now your fate here in Moscow—do you think other young men or women will be inspired or discouraged from doing what you did? Snowden: Chelsea Manning got thirty-five years in prison, while I’m still free. I talk to people in the ACLU office in New York all the time. I’m able to participate in the debate and to campaign for reform. I’m just the first to come forward in the manner that I did and succeed. When governments go too far to punish people for actions that are dissent rather than a real threat to the nation, they risk delegitimizing not just their systems of justice, but the legitimacy of the government itself. Because when they bring political charges against people for acts that were clearly at least intended to work in the public interest, they deny them the opportunity to mount a public-interest defense. The charges they brought against me, for example, explicitly denied my ability to make a public-interest defense. There were no whistleblower protections that would’ve protected me—and that’s known to everybody in the intelligence community. There are no proper channels for making this information available when the system fails comprehensively.
  • The government would assert that individuals who are aware of serious wrongdoing in the intelligence community should bring their concerns to the people most responsible for that wrongdoing, and rely on those people to correct the problems that those people themselves authorized. Going all the way back to Daniel Ellsberg, it is clear that the government is not concerned with damage to national security, because in none of these cases was there damage. At the trial of Chelsea Manning, the government could point to no case of specific damage that had been caused by the massive revelation of classified information. The charges are a reaction to the government’s embarrassment more than genuine concern about these activities, or they would substantiate what harms were done. We’re now more than a year since my NSA revelations, and despite numerous hours of testimony before Congress, despite tons of off-the-record quotes from anonymous officials who have an ax to grind, not a single US official, not a single representative of the United States government, has ever pointed to a single case of individualized harm caused by these revelations. This, despite the fact that former NSA director Keith Alexander said this would cause grave and irrevocable harm to the nation. Some months after he made that statement, the new director of the NSA, Michael Rogers, said that, in fact, he doesn’t see the sky falling. It’s not so serious after all.
  • The Nation: You also remind us of [Manhattan Project physicist] Robert Oppenheimer—what he created and then worried about. Snowden: Someone recently talked about mass surveillance and the NSA revelations as being the atomic moment for computer scientists. The atomic bomb was the moral moment for physicists. Mass surveillance is the same moment for computer scientists, when they realize that the things they produce can be used to harm a tremendous number of people. It is interesting that so many people who become disenchanted, who protest against their own organizations, are people who contributed something to them and then saw how it was misused. When I was working in Japan, I created a system for ensuring that intelligence data was globally recoverable in the event of a disaster. I was not aware of the scope of mass surveillance. I came across some legal questions when I was creating it. My superiors pushed back and were like, “Well, how are we going to deal with this data?” And I was like, “I didn’t even know it existed.” Later, when I found out that we were collecting more information on American communications than we were on Russian communications, for example, I was like, “Holy shit.” Being confronted with the realization that work you intended to benefit people is being used against them has a radicalizing effect.
  • The Nation: We have a sense, or certainly the hope, we’ll be seeing you in America soon—perhaps sometime after this Ukrainian crisis ends. Snowden: I would love to think that, but we’ve gone all the way up the chain at all the levels, and things like that. A political decision has been made not to irritate the intelligence community. The spy agencies are really embarrassed, they’re really sore—the revelations really hurt their mystique. The last ten years, they were getting the Zero Dark Thirty treatment—they’re the heroes. The surveillance revelations bring them back to Big Brother kind of narratives, and they don’t like that at all. The Obama administration almost appears as though it is afraid of the intelligence community. They’re afraid of death by a thousand cuts—you know, leaks and things like that.
  • The Nation: You’ve given us a lot of time, and we are very grateful, as will be The Nation’s and other readers. But before we end, any more thoughts about your future? Snowden: If I had to guess what the future’s going to look like for me—assuming it’s not an orange jumpsuit in a hole—I think I’m going to alternate between tech and policy. I think we need that. I think that’s actually what’s missing from government, for the most part. We’ve got a lot of policy people, but we have no technologists, even though technology is such a big part of our lives. It’s just amazing, because even these big Silicon Valley companies, the masters of the universe or whatever, haven’t engaged with Washington until recently. They’re still playing catch-up. As for my personal politics, some people seem to think I’m some kind of archlibertarian, a hyper-conservative. But when it comes to social policies, I believe women have the right to make their own choices, and inequality is a really important issue. As a technologist, I see the trends, and I see that automation inevitably is going to mean fewer and fewer jobs. And if we do not find a way to provide a basic income for people who have no work, or no meaningful work, we’re going to have social unrest that could get people killed. When we have increasing production—year after year after year—some of that needs to be reinvested in society. It doesn’t need to be consistently concentrated in these venture-capital funds and things like that. I’m not a communist, a socialist or a radical. But these issues have to be 
addressed.
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    Remarkable interview. Snowden finally gets asked some questions about politics. 
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POGO Provides Statement for House Hearing on VA Whistleblowers - 0 views

  • In the spring of 2014, the Project On Government Oversight (POGO) put out the call to whistleblowers within the Department of Veterans Affairs (VA) to provide an inside perspective on the issues the Department was facing. In our 34-year history, POGO has never received as many submissions on a single issue. Nearly 800 current and former VA employees and veterans from 35 states and the District of Columbia contacted us. POGO reviewed each of the submissions, and found that concerns about the VA go far beyond long or falsified wait times for medical appointments; they extend to the quality of health care services veterans receive. A recurring and fundamental theme became clear: VA employees across the country fear they will face repercussions if they dare to raise a dissenting voice. POGO wrote a letter to Acting VA Secretary Sloan Gibson in July last year, highlighting three specific cases of current or former employees who agreed to share details about their personal experiences of retaliation.[1] In California, a VA inpatient pharmacy supervisor was placed on administrative leave and ordered not to speak out after protesting “inordinate delays” in delivering medication to patients and “refusal to comply with VHA regulations.” In one case, he said, a veteran’s epidural drip of pain control medication ran dry, and another veteran developed a high fever after he was administered a chemotherapy drug after its expiration point.
  • In Pennsylvania, a former VA doctor told POGO that he had been removed from clinical work and forced to spend his days in an office with nothing to do. This action occurred after he complained that, in medical emergencies, physicians who were supposed to be on call were failing or refusing to report to the hospital. The Office of Special Counsel (OSC) shared his concerns, writing “[w]e have concluded that there is a substantial likelihood that the information that you provided to OSC discloses a substantial and specific danger to public health and safety.”[2] In Appalachia, a former VA nurse told POGO she was intimidated by management and forced out of her job after she raised concerns that patients with serious injuries were being neglected. In one case she was reprimanded for referring a patient to the VA’s patient advocate after weeks of being unable to arrange transportation for a medical test to determine if he was in danger of sudden death. “Such an upsetting thing for a nurse just to see this blatant neglect occur almost on a daily basis. It was not only overlooked but appeared to be embraced,” she said. She also pointed out that there is “a culture of bullying employees….It’s just a culture of harassment that goes on if you report wrongdoing,” she said.
  • That culture doesn’t appear to be limited to just one or two VA clinics. Some people, including former employees who are now beyond the reach of VA management, were willing to be interviewed by POGO and to be quoted by name, but others said they contacted us anonymously because they are still employed at the VA and are worried about retaliation. One put it this way: “Management is extremely good at keeping things quiet and employees are very afraid to come forward.” This kind of fear and suppression of whistleblowers who report wrongdoing often culminates in the larger problems, as the VA is currently experiencing. By now it is well known that employees who recently raised concerns about veteran wait times faced reprisal. But whistleblower retaliation in the VA is nothing new. In 1992 a congressional report detailed the experiences of VA employees who were harassed or fired after reporting problems.[3] Throughout the 1990s there were several congressional hearings conducted on the quality of care at VA hospitals and on reprisal against VA employees who exposed inadequate care.[4] Despite then-Secretary Togo D. West’s declaration that such reprisals would not be tolerated, a House hearing in 1999 found that the reprisal problems still existed.[5] A Government Accountability Report from 2000 found that many VA employees were unaware of their rights to protections against retaliation for blowing the whistle on wrongdoing.[6] The report also found that the majority of employees feared retaliation and were therefore unwilling to report misconduct.
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  • The Office of Special Counsel (OSC) has been working to investigate claims of retaliation and get favorable actions for many of the VA whistleblowers who have come forward. Since April 2014, the OSC has successfully obtained corrective actions for over 25 whistleblowers.[7] But the OSC still has over 100 pending VA reprisal cases to investigate, among the highest of any government agency, according to Special Counsel Carolyn Lerner.[8] Although the VA has been cooperative with the OSC and their recommendations, merely addressing isolated incidents is not enough.[9] The VA has been struggling with a culture problem for decades and something more must be done.
  • VA employees who have concerns about management or fear retaliation are supposed to be able to turn to the VA’s Office of Inspector General (OIG). But whistleblowers have come to doubt the VA IG’s willingness to hold wrongdoers accountable. Since 2014, the IG Office has not yet publically released any investigation into employee retaliation, making it difficult to assess how seriously the IG’s office is taking this issue. Furthermore, the VA IG’s office issued an administrative subpoena to POGO in May 2014 that was little more than an invasive fishing expedition for whistleblowers. The IG demanded “All records that POGO has received from current or former employees of the Department of Veterans Affairs, and other individuals or entities.”[10] Though POGO did not comply with the subpoena, such an action was cause for concern for many of the whistleblowers who had shared information with us. POGO remains concerned that there is not a permanent VA IG in place and that the position has been vacant for over a year.[11] Our own investigations have found that the absence of permanent leadership can have a serious impact on the effectiveness of an IG office.[12] Acting IGs do not undergo the same kind of extensive vetting process required of permanent IGs, and as a consequence usually lack the credibility of a permanent IG. Acting IGs also often seek appointment to the permanent position, which can compromise their independence by giving them an incentive to curry favor with the White House and the leadership of their agency.[13] Perhaps most worrisome, given the significant challenges facing the VA IG, a 2009 study found that vacancies in top agency positions promote agency inaction, create confusion among career employees, make an agency less likely to handle controversial issues, result in fewer enforcement actions by regulatory agencies and decrease public trust in government.[14]
  • It appears the VA IG may be subject to this dangerous lack of independence. For example, the VA OIG has failed to release the results of 140 health care investigations since 2006.[15] Furthermore, the Department of Treasury IG sent a letter to this Committee just last month raising concerns about another VA IG investigation. After speaking to witnesses familiar with the situation, the Treasury IG concluded that their testimony, “calls into question the integrity of the VA OIG’s actions in this particular manner.” The Treasury IG’s investigation also found that multiple witnesses stated a VA employee boasted about his ability to influence the VA OIG’s investigations.[16]
  • In POGO’s 2014 letter, we recommended concrete steps for incoming VA Secretary McDonald to take in order to demonstrate an agency-wide commitment to changing the VA’s culture of fear, bullying, and retaliation. Neither Acting Secretary Sloan Gibson nor Secretary McDonald have responded to our multiple requests for a meeting. Clearly, an important first step will be for the President to nominate a permanent IG for the VA. Hopefully strong and committed leadership in that office will correct its current course. POGO recommended that Secretary McDonald make a tangible and meaningful gesture to support those whistleblowers who have been trying to fix the VA from the inside. Once the OSC has identified meritorious cases, Secretary McDonald should personally meet with those whistleblowers and elevate their status from villain to hero. These employees should be publicly celebrated for their courage, and should receive positive recognition in their personnel files, including possibly receiving the types of bonuses that have been provided to wrongdoers in the past. Retaliation against whistleblowers is already a prohibited personnel practice, but it will be up to the senior-most VA leadership to ensure that this rule is enforced by the agency. This should not be an isolated event done in response to recent criticisms but an ongoing effort. Whistleblowing must be encouraged and celebrated or wrongdoing will continue.
  • But it’s not just the VA Secretary who can work to fix this problem. Congress should enact legislation that codifies accountability for those who retaliate against whistleblowers. The definition of “wrongdoing” must include retaliation. The cultural shift that is required inside the Department of Veterans Affairs must be accompanied by statutory mandates that protect whistleblowers and witnesses inside the agency from retaliation. Legislation should ensure that whistleblowers are able to be confident that stepping forward to expose wrongdoing will not result in retaliation, and should provide a system to hold retaliators within the VA accountable. Congress should also extend whistleblower protections to contractors and veterans who raise concerns about medical care provided by the VA. POGO’s investigation found that both of these groups also fear retaliation that prevents them from coming forward. While federal employees working at the VA enjoy whistleblower protections, contractors do not. Congress should extend the same protections to contractors in order to promote internal oversight in an increasingly contractor-heavy landscape.
  • In addition, a veteran who is receiving poor care should be able to speak to his or her patient advocate without fear of retaliation, including a reduction in the quality of health care. Without this reassurance, there is a disincentive to report poor care, allowing it to continue uncorrected. Congress should extend whistleblower protections to veteran whistleblowers. The VA and Congress must work together to end this culture of fear and retaliation. Whistleblowers who report concerns that affect veteran health must be lauded, not shunned. And the law must protect them.
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Global Financial Meltdown Coming? Clear Signs That The Great Derivatives Crisis Has Now... - 0 views

  • No one “understands” derivatives. How many times have readers heard that thought expressed (please round-off to the nearest thousand)? Why does no one understand derivatives? For many; the answer to that question is that they have simply been thinking too hard. For others; the answer is that they don’t “think” at all. Derivatives are bets. This is not a metaphor, or analogy, or generalization. Derivatives are bets. Period. That’s all they ever were. That’s all they ever can be.
  • One very large financial institution that appears to be in serious trouble with these financial weapons of mass destruction is Glencore.  At one time Glencore was considered to be the 10th largest company on the entire planet, but now it appears to be coming apart at the seams, and a great deal of their trouble seems to be tied to derivatives.  The following comes from Zero Hedge… Of particular concern, they said, was Glencore’s use of financial instruments such as derivatives to hedge its trading of physical goods against price swings. The company had $9.8 billion in gross derivatives in June 2015, down from $19 billion in such positions at the end of 2014, causing investors to query the company about the swing. Glencore told investors the number went down so drastically because of changes in market volatility this year, according to people briefed by Glencore. When prices vary significantly, it can increase the value of hedging positions. Last year, there were extreme price moves, particularly in the crude-oil market, which slid from about $114 a barrel in June to less than $60 a barrel by the end of December.
  • That response wasn’t satisfying, said Michael Leithead, a bond fund portfolio manager at EFG Asset Management, which managed $12 billion as of the end of March and has invested in Glencore’s debt.
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  • According to Bank of America, the global financial system has about 100 billion dollars of exposure overall to Glencore.  So if Glencore goes bankrupt that is going to be a major event.  At this point, Glencore is probably the most likely candidate to be “the next Lehman Brothers”. And it isn’t just Glencore that is in trouble.  Other financial giants such as Trafigura are in deep distress as well.  Collectively, the global financial system has approximately half a trillion dollars of exposure to these firms… Worse, since it is not just Glencore that the banks are exposed to but very likely the rest of the commodity trading space, their gross exposure blows up to a simply stunning number:
  • For the banks, of course, Glencore may not be their only exposure in the commodity trading space. We consider that other vehicles such as Trafigura, Vitol and Gunvor may feature on bank balance sheets as well ($100 bn x 4?)
  • Call it half a trillion dollars in very highly levered exposure to commodities: an asset class that has been crushed in the past year. The mainstream media is not talking much about any of this yet, and that is probably a good thing.  But behind the scenes, unprecedented moves are already taking place. When I came across the information that I am about to share with you, I was absolutely stunned.  It comes from Investment Research Dynamics, and it shows very clearly that everything is not “okay” in the financial world… Something occurred in the banking system in September that required a massive reverse repo operation in order to force the largest ever Treasury collateral injection into the repo market.   Ordinarily the Fed might engage in routine reverse repos as a means of managing the Fed funds rate.   However, as you can see from the graph below, there have been sudden spikes up in the amount of reverse repos that tend to correspond the some kind of crisis – the obvious one being the de facto collapse of the financial system in 2008:
  • What in the world could possibly cause a spike of that magnitude? Well, that same article that I just quoted links the troubles at Glencore with this unprecedented intervention… What’s even more interesting is that the spike-up in reverse repos occurred at the same time – September 16 – that the stock market embarked on an 8-day cliff dive, with the S&P 500 falling 6% in that time period.  You’ll note that this is around the same time that a crash in Glencore stock and bonds began.   It has been suggested by analysts that a default on Glencore credit derivatives either by Glencore or by financial entities using derivatives to bet against that event would be analogous to the “Lehman moment” that triggered the 2008 collapse. The blame on the general stock market plunge was cast on the Fed’s inability to raise interest rates.  However that seems to be nothing more than a clever cover story for something much more catastrophic which began to develop out sight in the general liquidity functions of the global banking system. Back in 2008, Lehman Brothers was not “perfectly fine” one day and then suddenly collapsed the next.  There were problems brewing under the surface well in advance. Well, the same thing is happening now at banking giants such as Deutsche Bank, and at commodity trading firms such as Glencore, Trafigura and The Noble Group. And of course a lot of smaller fish are starting to implode as well.  I found this example posted on Business Insider earlier today…
  • On September 11, Spruce Alpha, a small hedge fund which is part of a bigger investment group, sent a short report to investors. The letter said that the $80 million fund had lost 48% in a month, according the performance report seen by Business Insider. There was no commentary included in the note. No explanation. Just cold hard numbers.
  • Wow – how do you possibly lose 48 percent in a single month? It would be hard to do that even if you were actually trying to lose money on purpose. Sadly, this kind of scenario is going to be repeated over and over as we get even deeper into this crisis. Meanwhile, our “leaders” continue to tell us that there is nothing to worry about.  For example, just consider what former Fed Chairman Ben Bernanke is saying…
  • Former Federal Reserve chairman Ben Bernanke doesn’t see any bubbles forming in global markets right right now. But he doesn’t think you should take his word for it. And even if you did, that isn’t the right question to ask anyway. Speaking at a Wall Street Journal event on Wednesday morning, Bernanke said, “I don’t see any obvious major mispricings. Nothing that looks like the housing bubble before the crisis, for example. But you shouldn’t trust me.”
  • I certainly agree with that last sentence.  Bernanke was the one telling us that there was not going to be a recession back in 2008 even after one had already started.  He was clueless back then and he is clueless today. Most of our “leaders” either don’t understand what is happening or they are not willing to tell us. So that means that we have to try to figure things out for ourselves the best that we can.  And right now there are signs all around us that another 2008-style crisis has begun. Personally, I am hoping that there will be a lot more days like today when the markets were relatively quiet and not much major news happened around the world. Unfortunately for all of us, these days of relative peace and tranquility are about to come to a very abrupt end.
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    "Warren Buffett once referred to derivatives as "financial weapons of mass destruction", and it was inevitable that they would begin to wreak havoc on our financial system at some point.  While things may seem somewhat calm on Wall Street at the moment, the truth is that a great deal of trouble is bubbling just under the surface.  As you will see below, something happened in mid-September that required an unprecedented 405 billion dollar surge of Treasury collateral into the repo market.  I know - that sounds very complicated, so I will try to break it down more simply for you.  It appears that some very large institutions have started to get into a significant amount of trouble because of all the reckless betting that they have been doing.  This is something that I have warned would happen over and over again.  In fact, I have written about it so much that my regular readers are probably sick of hearing about it.  But this is what is going to cause the meltdown of our financial system. Many out there get upset when I compare derivatives trading to gambling, and perhaps it would be more accurate to describe most derivatives as a form of insurance.  The big financial institutions assure us that they have passed off most of the risk on these contracts to others and so there is no reason to worry according to them. Well, personally I don't buy their explanations, and a lot of others don't either.  On a very basic, primitive level, derivatives trading is gambling.  This is a point that Jeff Nielson made very eloquently in a piece that he recently published…"
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Russia deploys S-400 in Syria | The Vineyard of the Saker - 0 views

  • Yup.  I heard the rumor earlier today but I wanted a wait a little to get a confirmation.  Cassad (whom I trust) has just confirmed: Russia has deployed S-400s in Syria:
  • The western “response”? Total panic:
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    The S-400 is generally regarded as currently the most potent ground to air missile system in the world. It's good enough to knock both planes and missiles out of the sky. This has to be regarded as a big deterrent to the U.S., Turkey, and Israel, since they have the only air forces flying over Syria other than Russia's ally, the Syrian Arab Army.  I suspect that you can kiss goodbye Turkey's plan for no-fly anti-Assad forces "safe zones" inside Syria along the Turkish border as well as Israel's eagerness to send in its fighters to blow up weapons shipments to Hezbollah forces fighting in Syria.  For more on the S-400, see https://en.wikipedia.org/wiki/S-400_(missile)
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Germany rejects own spy agency's criticism of Saudi Arabia - Yahoo News - 0 views

  • The German government on Friday rejected the findings of a damning report on Saudi Arabia by its own spy agency and called Riyadh a key partner in regional conflict resolution.
  • The highly unusual spat between the chancellery and foreign ministry on one side and the BND foreign intelligence service on the other hand erupted when the latter on Wednesday released a report accusing Saudi Arabia of a destabilising shift in foreign policy. "The until now cautious diplomatic stance of the older members of the leadership of the royal family is being replaced with an impulsive policy of intervention," it said. In particular, the BND focused on the role of Deputy Crown Prince Mohammed bin Salman who holds the defence portfolio and other powerful posts.The BND said he and his father King Salman, who acceded to power in January, appeared to want to establish themselves as the "leaders of the Arab world" by advancing a foreign policy agenda "with a strong military component as well as new regional alliances".
  • German government spokesman Steffen Seibert said Friday it was crucial that Berlin has a "coherent position" on the role of Saudi Arabia in the region."The assessments by the BND that were published do not reflect this coherent position," Seibert said."Those who want progress on the pressing issues in the region -- and there are many -- need constructive relations with Saudi Arabia," he said."Those who say that do not deny that there can be differences of opinion and differences in our political systems. But Saudi Arabia is a very, very important factor in the region."He highlighted Saudi Arabia's participation in meetings in Vienna aimed at finding a political solution in Syria and plans to host a meeting of opponents of Syrian President Bashar al-Assad.
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  • Foreign ministry spokesman Martin Schaefer insisted that Berlin had a "good and trusting" relationship with the BND in the analysis of the Middle East.But he said the role of the BND, which reports to the chancellery, was to provide "information that the government requests" and "not to supply journalists with information". Mohammed bin Salman has largely spearheaded Riyadh's handling of the war in Yemen, where Saudi Arabia is leading a coalition supporting the government against Iran-backed Shiite Huthi rebels.Rights groups have repeatedly criticised the strikes, saying they have hit areas where there are no military targets.Nearly 5,000 people have been killed in the war, more than half of them civilians, according to UN estimates.
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Obama aide says we can't defeat ISIS without resolving Palestinian issue - 0 views

  • President Obama’s new ISIS czar said yesterday that resolving the Israel Palestine conflict is necessary to defeating Islamist extremists. Rob Malley, senior advisor to Obama “for the Counter-ISIL Campaign in Iraq and Syria” and White House Coordinator for the Middle East and North Africa, said at a New York conference that the conflict enables ISIS in two ways. Extremists “refer constantly” to the situation of Palestinians. So they would lose a recruiting tool if the matter were resolved. And the failure to resolve the conflict makes it “very difficult” to get “the kind of open cooperation that we really need to get changes on the ground”– because Saudi Arabia and other states can’t work openly with Israel as matters stand. Malley said that resolving the conflict was not a “magic wand” to ending problems in the Middle East, but asked if ISIS’s next stop was going to be Gaza or the West Bank, he went on: I don’t know where the next stop will be but I think there’s a more basic point, which is that the absence of a resolution is fueling extremism. If you want to go to Gaza that’s self-evident. Whether ISIS is going to have a foothold there.. that’s a separate question. But I think it stands to reason that resolving this conflict would at least help, it wouldn’t resolve– but it would be a major contribution to stemming the rise of extremism, and to allow the kind of cooperation that is needed [to take on] what should be a common challenge, which is the challenge of ISIS, and of other extremist organizations.
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    The Israel-firsters will be pushing back against this one. But 'twill be interesting if this stands as Administration policy.
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How anti-Muslim are Americans? Data points to extent of Islamophobia | US news | The Gu... - 0 views

  • Who exactly was Donald Trump appealing to when he called on Monday for a “total and complete shutdown of Muslims entering the United States”? Quite a few people, according to a YouGov poll conducted earlier this year which found that 55% of surveyed Americans had an “unfavorable” opinion of Islam. Looking more closely at those respondents, Islamophobic sentiments are more common among Americans who are 45 and older, those who are Republican and those who are white.
  • Attitudes toward Islam and attitudes toward Muslims should be considered separately – however, studies suggests that the two overlap considerably, as many people fail to distinguish between the two. In 2014, Pew Research Center published a large study about American attitudes towards individuals of different faiths. Over 3,000 US respondents were asked to rate members of religious groups using a “feeling thermometer” that ranged from 0 to 100: 0 indicated the coldest, most negative possible rating and 100 the warmest, most positive rating. Muslims scored just 40. That score excludes Muslim respondents’ views about other Muslims. The only other group to fare similarly badly were atheists as rated by religious respondents – they too scored 40. There is however an important difference between those two scores: there are far more atheists in America than there are Muslims. Since the Census Bureau is prohibited by law from asking about religious affiliation, Pew surveys are the main source on America’s religious makeup. Their 2015 data shows that 3% of Americans identify as atheist (as well as 4% who say they’re agnostic and 16% who say they’re nothing in particular). By contrast, just under 1% of Americans identify as Muslim – although estimates vary widely and are partly dependent on Muslims’ willingness to identify with the label to interviewers.
  • Those two percentages – the number of Americans who dislike Muslims and the number of Americans who are Muslim – suggest that Trump would not have had the same receptive audience had he singled out members of any other religious group. So far, much of Trump’s anti-Muslim rhetoric has focused on security. That’s smart. When Brits were asked this year what words they think of when they hear the word Muslim, their most common responses were “terror”, “terrorism” and “terrorist”. It’s also relevant that when individuals (again often white, often Republican) were trying to undermine Barack Obama’s credibility in 2004 and claim that he could not be trusted, they said he was a secret Muslim. What sounded like an accusation only increased in frequency once Obama became a presidential candidate. As of September this year, 29% of Americans (and 43% of Republicans) still believe that Obama is a Muslim, according to a poll by CNN and the Opinion Research Corporation.
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European Human Rights Court Deals a Heavy Blow to the Lawfulness of Bulk Surveillance |... - 0 views

  • In a seminal decision updating and consolidating its previous jurisprudence on surveillance, the Grand Chamber of the European Court of Human Rights took a sideways swing at mass surveillance programs last week, reiterating the centrality of “reasonable suspicion” to the authorization process and the need to ensure interception warrants are targeted to an individual or premises. The decision in Zakharov v. Russia — coming on the heels of the European Court of Justice’s strongly-worded condemnation in Schrems of interception systems that provide States with “generalised access” to the content of communications — is another blow to governments across Europe and the United States that continue to argue for the legitimacy and lawfulness of bulk collection programs. It also provoked the ire of the Russian government, prompting an immediate legislative move to give the Russian constitution precedence over Strasbourg judgments. The Grand Chamber’s judgment in Zakharov is especially notable because its subject matter — the Russian SORM system of interception, which includes the installation of equipment on telecommunications networks that subsequently enables the State direct access to the communications transiting through those networks — is similar in many ways to the interception systems currently enjoying public and judicial scrutiny in the United States, France, and the United Kingdom. Zakharov also provides a timely opportunity to compare the differences between UK and Russian law: Namely, Russian law requires prior independent authorization of interception measures, whereas neither the proposed UK law nor the existing legislative framework do.
  • The decision is lengthy and comprises a useful restatement and harmonization of the Court’s approach to standing (which it calls “victim status”) in surveillance cases, which is markedly different from that taken by the US Supreme Court. (Indeed, Judge Dedov’s separate but concurring opinion notes the contrast with Clapper v. Amnesty International.) It also addresses at length issues of supervision and oversight, as well as the role played by notification in ensuring the effectiveness of remedies. (Marko Milanovic discusses many of these issues here.) For the purpose of the ongoing debate around the legitimacy of bulk surveillance regimes under international human rights law, however, three particular conclusions of the Court are critical.
  • The Court took issue with legislation permitting the interception of communications for broad national, military, or economic security purposes (as well as for “ecological security” in the Russian case), absent any indication of the particular circumstances under which an individual’s communications may be intercepted. It said that such broadly worded statutes confer an “almost unlimited degree of discretion in determining which events or acts constitute such a threat and whether that threat is serious enough to justify secret surveillance” (para. 248). Such discretion cannot be unbounded. It can be limited through the requirement for prior judicial authorization of interception measures (para. 249). Non-judicial authorities may also be competent to authorize interception, provided they are sufficiently independent from the executive (para. 258). What is important, the Court said, is that the entity authorizing interception must be “capable of verifying the existence of a reasonable suspicion against the person concerned, in particular, whether there are factual indications for suspecting that person of planning, committing or having committed criminal acts or other acts that may give rise to secret surveillance measures, such as, for example, acts endangering national security” (para. 260). This finding clearly constitutes a significant threshold which a number of existing and pending European surveillance laws would not meet. For example, the existence of individualized reasonable suspicion runs contrary to the premise of signals intelligence programs where communications are intercepted in bulk; by definition, those programs collect information without any consideration of individualized suspicion. Yet the Court was clearly articulating the principle with national security-driven surveillance in mind, and with the knowledge that interception of communications in Russia is conducted by Russian intelligence on behalf of law enforcement agencies.
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  • This element of the Grand Chamber’s decision distinguishes it from prior jurisprudence of the Court, namely the decisions of the Third Section in Weber and Saravia v. Germany (2006) and of the Fourth Section in Liberty and Ors v. United Kingdom (2008). In both cases, the Court considered legislative frameworks which enable bulk interception of communications. (In the German case, the Court used the term “strategic monitoring,” while it referred to “more general programmes of surveillance” in Liberty.) In the latter case, the Fourth Section sought to depart from earlier European Commission of Human Rights — the court of first instance until 1998 — decisions which developed the requirements of the law in the context of surveillance measures targeted at specific individuals or addresses. It took note of the Weber decision which “was itself concerned with generalized ‘strategic monitoring’, rather than the monitoring of individuals” and concluded that there was no “ground to apply different principles concerning the accessibility and clarity of the rules governing the interception of individual communications, on the one hand, and more general programmes of surveillance, on the other” (para. 63). The Court in Liberty made no mention of any need for any prior or reasonable suspicion at all.
  • In Weber, reasonable suspicion was addressed only at the post-interception stage; that is, under the German system, bulk intercepted data could be transmitted from the German Federal Intelligence Service (BND) to law enforcement authorities without any prior suspicion. The Court found that the transmission of personal data without any specific prior suspicion, “in order to allow the institution of criminal proceedings against those being monitored” constituted a fairly serious interference with individuals’ privacy rights that could only be remedied by safeguards and protections limiting the extent to which such data could be used (para. 125). (In the context of that case, the Court found that Germany’s protections and restrictions were sufficient.) When you compare the language from these three cases, it would appear that the Grand Chamber in Zakharov is reasserting the requirement for individualized reasonable suspicion, including in national security cases, with full knowledge of the nature of surveillance considered by the Court in its two recent bulk interception cases.
  • The requirement of reasonable suspicion is bolstered by the Grand Chamber’s subsequent finding in Zakharov that the interception authorization (e.g., the court order or warrant) “must clearly identify a specific person to be placed under surveillance or a single set of premises as the premises in respect of which the authorisation is ordered. Such identification may be made by names, addresses, telephone numbers or other relevant information” (para. 264). In making this finding, it references paragraphs from Liberty describing the broad nature of the bulk interception warrants under British law. In that case, it was this description that led the Court to find the British legislation possessed insufficient clarity on the scope or manner of exercise of the State’s discretion to intercept communications. In one sense, therefore, the Grand Chamber seems to be retroactively annotating the Fourth Section’s Liberty decision so that it might become consistent with its decision in Zakharov. Without this revision, the Court would otherwise appear to depart to some extent — arguably, purposefully — from both Liberty and Weber.
  • Finally, the Grand Chamber took issue with the direct nature of the access enjoyed by Russian intelligence under the SORM system. The Court noted that this contributed to rendering oversight ineffective, despite the existence of a requirement for prior judicial authorization. Absent an obligation to demonstrate such prior authorization to the communications service provider, the likelihood that the system would be abused through “improper action by a dishonest, negligent or overly zealous official” was quite high (para. 270). Accordingly, “the requirement to show an interception authorisation to the communications service provider before obtaining access to a person’s communications is one of the important safeguards against abuse by the law-enforcement authorities” (para. 269). Again, this requirement arguably creates an unconquerable barrier for a number of modern bulk interception systems, which rely on the use of broad warrants to authorize the installation of, for example, fiber optic cable taps that facilitate the interception of all communications that cross those cables. In the United Kingdom, the Independent Reviewer of Terrorism Legislation David Anderson revealed in his essential inquiry into British surveillance in 2015, there are only 20 such warrants in existence at any time. Even if these 20 warrants are served on the relevant communications service providers upon the installation of cable taps, the nature of bulk interception deprives this of any genuine meaning, making the safeguard an empty one. Once a tap is installed for the purposes of bulk interception, the provider is cut out of the equation and can no longer play the role the Court found so crucial in Zakharov.
  • The Zakharov case not only levels a serious blow at bulk, untargeted surveillance regimes, it suggests the Grand Chamber’s intention to actively craft European Court of Human Rights jurisprudence in a manner that curtails such regimes. Any suggestion that the Grand Chamber’s decision was issued in ignorance of the technical capabilities or intentions of States and the continued preference for bulk interception systems should be dispelled; the oral argument in the case took place in September 2014, at a time when the Court had already indicated its intention to accord priority to cases arising out of the Snowden revelations. Indeed, the Court referenced such forthcoming cases in the fact sheet it issued after the Zakharov judgment was released. Any remaining doubt is eradicated through an inspection of the multiple references to the Snowden revelations in the judgment itself. In the main judgment, the Court excerpted text from the Director of the European Union Agency for Human Rights discussing Snowden, and in the separate opinion issued by Judge Dedov, he goes so far as to quote Edward Snowden: “With each court victory, with every change in the law, we demonstrate facts are more convincing than fear. As a society, we rediscover that the value of the right is not in what it hides, but in what it protects.”
  • The full implications of the Zakharov decision remain to be seen. However, it is likely we will not have to wait long to know whether the Grand Chamber intends to see the demise of bulk collection schemes; the three UK cases (Big Brother Watch & Ors v. United Kingdom, Bureau of Investigative Journalism & Alice Ross v. United Kingdom, and 10 Human Rights Organisations v. United Kingdom) pending before the Court have been fast-tracked, indicating the Court’s willingness to continue to confront the compliance of bulk collection schemes with human rights law. It is my hope that the approach in Zakharov hints at the Court’s conviction that bulk collection schemes lie beyond the bounds of permissible State surveillance.
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Wells Fargo in Hot Water with US Regulators & Fed After Lawsuit - nsnbc international |... - 0 views

  • Wells Fargo is facing a probe by the Officer of the Comptroller of the Currency (OCC) and the San Francisco Federal Reserve Bank (SFFR) into their allegedly unethical business practices.
  • Back in May Wells Fargo was sued by employees (current and former) and customers all across the nation for setting up “unwanted accounts, unwarranted fees”. This lawsuit “contends the largest California-based bank violated state and federal laws by misusing confidential information and failing to notify customers when personal information was breached.” Using “aggressive tactics” to coerce new customers, WF made it “difficult to correct the mistakes” made by WF and return fees to customers because of “high-pressure sales culture set unrealistic quotas, spurring employees to engage in fraudulent conduct to keep their jobs and boost the company’s profits.” Los Angeles City Attorney Mike Feuer said: “In its push for growth, Wells Fargo often elevated its profits over the legal rights of its customers.”
  • For 2 years, Feuer has been investigating how WF “staffers, fearing disciplinary action from managers, begged friends and family members to open ghost accounts” and forged signatures “and falsified phone numbers” of customers who did not want to open an account. This practice drove WF success with an estimated “26% of the company’s revenue was from fee income, including those from credit and debit card accounts, trusts and investments.” WF not only stole money from customers but “also damage their credit scores” and put some into collections to garner fees “for unauthorized accounts went unpaid”. According to the 19-page complaint, WF would “sandbag” their customers; meaning “failing to open accounts when requested by customers, and instead accumulating a number of account applications to be opened at a later date.” Another devious tactic WF employed was “bundling” or “incorrectly informing customers that certain products are available only in packages with other products such as additional accounts, insurance, annuities, and retirement plans.”
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