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The People vs. Goldman Sachs | Rolling Stone Politics - 0 views

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    Matt Taibbi continues to track the dusty trail of Banksters and criminal politicos.  What an amazing story! intro: They weren't murderers or anything; they had merely stolen more money than most people can rationally conceive of, from their own customers, in a few blinks of an eye. But then they went one step further. They came to Washington, took an oath before Congress, and lied about it. Thanks to an extraordinary investigative effort by a Senate subcommittee that unilaterally decided to take up the burden the criminal justice system has repeatedly refused to shoulder, we now know exactly what Goldman Sachs executives like Lloyd Blankfein and Daniel Sparks lied about. We know exactly how they and other top Goldman executives, including David Viniar and Thomas Montag, defrauded their clients. America has been waiting for a case to bring against Wall Street. Here it is, and the evidence has been gift-wrapped and left at the doorstep of federal prosecutors, evidence that doesn't leave much doubt: Goldman Sachs should stand trial.
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Six Mistakes the West Has Made (and Continues to Make) in Ukraine | The National Interest - 0 views

  • If the West appears confused by Russian actions in Ukraine and unable to find an adequate response to the crisis, it is because from the outset, it has misread the situation, transforming an essentially domestic dispute into one that threatens the security architecture of Europe. While all sides have contributed to the current debacle, six widely held assumptions have played an inordinate role in shaping Western discourse about Ukraine. These will need to be corrected before any real progress can be made.
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The Sound of Torture - The Intercept - 0 views

  • Suddenly there was a chilling scream. “Allah,” someone wailed. “Allah! Allah!” As I wrote at the time, this wasn’t a cry of religious ecstasy. It was the sound of deep pain, coming from elsewhere in the town library, which had been turned into a detention center by Iraqi security forces who were advised by American soldiers and contractors. I was embedded with the Americans for a week, and I had already heard two of them, from the Wisconsin National Guard, talk about seeing their Iraqi partners trussing up prisoners like animals at a slaughter. During raids, I had seen these Iraqis beat their detainees — muggings as a form of questioning — while their American advisers watched.
  • The CIA’s violations of its detainees are the tip of the torture iceberg. We run the risk, in the necessary debate sparked by the Senate’s release of 500 pages on CIA interrogation abuses, of focusing too narrowly on what happened to 119 detainees held at the agency’s black sites from 2002-2006. The problem of American torture — how much occurred, what impact it had, who bears responsibility — is much larger. Across Iraq and Afghanistan, American soldiers and the indigenous forces they fought alongside committed a large number of abuses against a considerable number of people. It didn’t begin at Abu Ghraib and it didn’t end there. The evidence, which has emerged in a drip-drip way over the years, is abundant though less dramatic than the aforementioned 500-page executive summary of the Senate’s still-classified report on the CIA.
  • Just as the CIA opposed release of the Senate torture report, the Pentagon and White House continue to do their best to suppress the evidence. The Daily Beast noted the other day that the Obama Administration, responding to pressure from the Pentagon, continues to fight in court to prevent the publication of thousands of photos of detainee abuse. The argument against release is nearly identical to the argument used by the CIA to repress the Senate’s report—it could put American lives in danger. To her credit, Sen. Dianne Feinstein pushed back and published an executive summary of her committee’s 6,000-page report (which has caused practically no protest or violence overseas). Repression is the gut instinct of institutions that have something to hide, and I came across that in Samarra, too. Shortly after I witnessed the threatened execution of a detainee (an Iraqi soldier pointed his AK-47 at a prisoner who was against a wall with his hands up), an order came down from the American command to get me out of Samarra. I was told to pack my backpack for the next convoy out of town. After I made a flurry of calls on my satellite phone, the order was rescinded. Someone wanted the truth to come out.
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  • Here’s a partial reading list of essential reporting on torture in Iraq and Afghanistan: Senate Report on Abuses of Military Detainees (2008): http://media.washingtonpost.com/wp-srv/nation/pdf/12112008_detaineeabuse.pdf Haditha Killings by Tim McGirk: http://content.time.com/time/world/article/0,8599,1174649,00.html Taguba Report on Abuses at Abu Ghraib: https://www.aclu.org/sites/default/files/torturefoia/released/TR3.pdf Abu Ghraib Abuses by Seymour Hersh: http://www.newyorker.com/magazine/2004/05/10/torture-at-abu-ghraib Special Forces in Afghanistan by Matt Aikens: http://www.rollingstone.com/feature/a-team-killings-afghanistan-special-forces Constitution Project’s Task Force on Detainee Treament (See especially chapter 3): http://detaineetaskforce.org/report/ “The Dark Side” by Jane Mayer: http://www.amazon.com/The-Dark-Side-Inside-American/dp/0307456293
  • “None of Us Were Like This Before” by Joshua Phillips: http://www.amazon.com/None-Were-Like-This-Before/dp/1844678849 The Killing of Dilawar by Carlotta Gall: http://www.nytimes.com/2003/03/04/international/asia/04AFGH.html “Pay Any Price” by James Risen (See especially Chapter 7): http://www.barnesandnoble.com/w/pay-any-price-james-risen/1117916812?ean=9780544341418 “Dirty Wars” by Jeremy Scahill (a founder of The Intercept): http://www.amazon.com/Dirty-Wars-The-World-Battlefield/dp/156858671X “How to Break a Terrorist” by Matthew Alexander: http://www.amazon.com/How-Break-Terrorist-Interrogators-Brutality/dp/B0085S1S5K “The Black Banners” by Ali Soufan: http://www.amazon.com/Black-Banners-Inside-Against-al-Qaeda/dp/0393079422 “Kandahar’s Mystery Executions” by Anand Gopal: http://harpers.org/archive/2014/09/kandahars-mystery-executions/ “No Good Men Among the Living” by Anand Gopal: http://www.amazon.com/No-Good-Men-Among-Living/dp/0805091793
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Dianne Feinstein: Terrorist sleeper cells are in the U.S. - Washington Times - 0 views

  • A Senate leader said Sunday she thinks terrorist sleeper cells are in the U.S. — a claim sure to spark even greater fears of a strike on the homeland as the White House launches new efforts to confront growing Islamist extremism around the globe.Sen. Dianne Feinstein, California Democrat and her party’s ranking member on the Senate Select Committee on Intelligence, flatly stated that she believes terrorist cells are hiding in Europe and the U.S., waiting to be activated and carry out attacks similar to the ones that claimed 17 lives in France last week.“I think there are sleeper cells not only in France but certainly in other countries and, yes, in our own,” she told CNN. “This calls for vigilance. … Hopefully, we can be more active in terms of doing those things which enable us to find terrorists, see who they’re communicating with and to track that.”
  • Mrs. Feinstein and Obama administration officials did not elaborate on how many suspected terrorists are in the country, nor did they discuss details of any terrorist plot.Despite the apparent lack of specific threats, polling data show the American people are deeply worried about a strike in the U.S.A Rasmussen poll released Sunday shows that 65 percent of Americans believe it is at least somewhat likely that an attack “on those critical of Islam” in the U.S. will occur over the next year. Just 26 percent said such an attack is not likely, the survey shows.
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    "Why, of course, the people don't want war. Why would some poor slob on a farm want to risk his life in a war when the best that he can get out of it is to come back to his farm in one piece. Naturally, the common people don't want war; neither in Russia nor in England nor in America, nor for that matter in Germany. That is understood. But, after all, it is the leaders of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy or a fascist dictatorship or a Parliament or a Communist dictatorship. …  "Oh, that is all well and good, but, voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is tell them they are being attacked and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same way in any country." - Hermann Goering; Quote verified, http://www.snopes.com/quotes/goering.asp
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Video Replay: Heated Exchange at State Department Briefing on Russian Activities - Wash... - 0 views

  • U.S. defense and diplomatic officials said Thursday that Russia is firing artillery across its border at Ukrainian military positions. At a State Department briefing, spokeswoman Marie Harf said the U.S. also has evidence that Russia intends to deliver powerful rocket systems to pro-Russia rebels in Ukraine. Ms. Harf declined to provide details about the systems or about how that conclusion was reached, sparking a back-and-forth with Associated Press journalist Matthew Lee over how the conclusion was reached.
  • On Tuesday, U.S. intelligence officials had laid out their case to reporters that Russian-backed Ukrainian separatists shot down Malaysia Airlines Flight 17 last week, relying on photographs, social media, and voiceprint analysis of Ukrainian communications intercepts. The evidence cited, however, didn’t raise the case for Russian involvement in the shoot-down to a new level of certainty, as The Wall Street Journal reported, and officials said they were working to refine evidence and may offer more in coming days.
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    Fun video clip of an Associated Press reporter trying unsuccessfully to get a State Dept. spokeswoman to give the world a clue about what evidence the U.S. has to support its charges about MH17 and Russian military involvement in the Ukraine slaughterhouse. 'Twould be comedic were it not leading up to WWIII.
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Did Certain Foreign Governments Facilitate the 9/11 Attacks? by Justin Raimondo -- Anti... - 0 views

  • Some thirteen years after the event, the shadow of the 9/11 terrorist attacks on the World Trade Center in Manhattan and the Pentagon still darkens our world. The legacy of that terrible day has impacted not only our foreign policy, bequeathing to a new generation an apparently endless "war on terrorism," it also has led directly to what is arguably the most massive assault on our civil liberties since the Alien and Sedition Acts. Getting all the information about what happened that day – and why it happened – is key to understanding the course we have taken since. This was supposed to have been the purpose of the 9/11 Commission, whose massive report is now looked to as the primary source on the subject. Yet there is another, far more specific investigative report, the one issued by the intelligence committees of both houses of Congress, entitled "Joint Inquiry into Intelligence Community Activities Before and After the Terrorist Attacks of September 11, 2001." If you actually take the time to read the report, all goes along swimmingly (except for occasional redactions) until you get to p. 369, whereupon the text is blacked out for the next twenty-eight pages.
  • Some thirteen years after the event, the shadow of the 9/11 terrorist attacks on the World Trade Center in Manhattan and the Pentagon still darkens our world. The legacy of that terrible day has impacted not only our foreign policy, bequeathing to a new generation an apparently endless "war on terrorism," it also has led directly to what is arguably the most massive assault on our civil liberties since the Alien and Sedition Acts. Getting all the information about what happened that day – and why it happened – is key to understanding the course we have taken since. This was supposed to have been the purpose of the 9/11 Commission, whose massive report is now looked to as the primary source on the subject. Yet there is another, far more specific investigative report, the one issued by the intelligence committees of both houses of Congress, entitled "Joint Inquiry into Intelligence Community Activities Before and After the Terrorist Attacks of September 11, 2001." If you actually take the time to read the report, all goes along swimmingly (except for occasional redactions) until you get to p. 369, whereupon the text is blacked out for the next twenty-eight pages.
  • Do you get the impression someone has something to hide? The censored section is entitled "Finding, Discussion and Narrative Regarding Certain Sensitive National Security Matters," and the introduction – left largely intact – is instructive: "Through its investigation, the Joint Inquiry developed information suggesting specific sources of foreign support for some of the September 11 hijackers while they were in the United States. The Joint Inquiry’s review confirmed that the Intelligence Community also has information, much of which has yet to be independently verified, concerning these potential sources of support. In their testimony, neither CIA nor FBI officials were able to address definitively the extent of such support for the hijackers globally or within the United States or the extent to which such support, if it exists, is knowing or inadvertent in nature."
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  • What’s in the 28 censored pages of the Joint Inquiry into 9/11? We don’t know for sure – but if Israel is involved, then we do know why they won’t let us read those pages. Representatives Jones, Lynch, and Massie have sparked a movement to declassify the 28 pages: go here for more information. This is a fight we need to win – but we can only do it by raising a huge stink. Call or write your congressional representatives and urge them to join the three congressmen who are fighting for your right to know. And spread the word.
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    Eloquent essay on the 60 Israeli "students" swept up by the FBI right after 9/11 then as swiftly shuttled onto airliners bound for Israel. It's a plea for the declassification of the 28 pages censored from the public version of the Congressional Intelligence Committees joint report on "Intelligence Community Activities Before and After the Terrorist Attacks of September 11, 2001." The essay's theme is wrapped around the preface to the censored pages mention of plural "sources of foreign support for some of the September 11 hijackers[.]" And it uses reported information about the  60 "students" and some statements by members of Congress who have read the 28 pages to argue there is a strong whiff that Israel was one of those plural sources of support. But the essay otherwise does not address the large mound of circumstantial evidence of Israel's involvement. I've got a lot of notes and links on that issue, so may blog about that later.
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Europe plunged into energy crisis as Russia cuts off gas supply via Ukraine | Daily Mai... - 0 views

  • Russia cut gas exports to Europe by 60 per cent today, plunging the continent into an energy crisis 'within hours' as a dispute with Ukraine escalated. This morning, gas companies in Ukraine said that Russia had completely cut off their supply.Six countries reported a complete shut-off of Russian gas shipped via Ukraine today, in a sharp escalation of a struggle over energy that threatens Europe as winter sets in.Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey all reported a halt in gas shipments from Russia through Ukraine. Croatia said it was temporarily reducing supplies to industrial customers while Bulgaria said it had enough gas for only 'for a few days' and was in a 'crisis situation'.
  • Russia cut gas exports to Europe by 60 per cent today, plunging the continent into an energy crisis 'within hours' as a dispute with Ukraine escalated. This morning, gas companies in Ukraine said that Russia had completely cut off their supply.Six countries reported a complete shut-off of Russian gas shipped via Ukraine today, in a sharp escalation of a struggle over energy that threatens Europe as winter sets in.Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey all reported a halt in gas shipments from Russia through Ukraine. Croatia said it was temporarily reducing supplies to industrial customers while Bulgaria said it had enough gas for only 'for a few days' and was in a 'crisis situation'.
  • The EU demanded the two sides reopen talks as the row immediately sparked fears of gas supply shortages and rising energy prices in the UK.The UK is suffering one of its coldest nights this century with temperatures plunging to as low as -10C.Though Britain is one of Gazprom's largest importers - relying on the company for some 16 per cent of consumption in 2007, according to The Times, the gas is supplied through a complicated swap scheme that means supplies themselves may not be affected.Prices, on the other hand, rose during trading in London today.
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  • The dispute, coupled with Israel's military operation in Gaza, also pushed oil up to a three-week high of $49.91 in New York yesterday. Russia, whose main export is oil, stands to benefit from a recovery in prices. 'Without prior warning and in clear contradiction with the reassurances given by the highest Russian and Ukrainian authorities to the European Union, gas supplies to some EU member states have been substantially cut,' the EU said in a statement.'The Czech EU Presidency and the European Commission demand that gas supplies be restored immediately to the EU and that the two parties resume negotiations at once with a view to a definitive settlement of their bilateral commercial dispute,' the presidency and the Commission said in a joint statement.They added that the EU would 'intensify the dialogue with both parties so that they can reach an agreement swiftly'.
  • Overnight the Russian Prime Minister Vladimir Putin ordered the state energy giant Gazprom to cut supplies to and through Ukraine by around three-fifths amid accusations its neighbour has been siphoning off and stealing Russian gas. Ukraine says the Russian move has been prompted by payment and price disputes, a row between the two that has become almost annual. The effects of the dispute on the rest of Europe however is stark, said Ukraine's main gas supplier. Around 80 per cent of the gas European Union countries receive from Russia comes through Ukraine. While Germany and France are much more exposed, it is reckoned in some estimates that 15 per cent of Britain's supplies come from Russia through pipelines into the UK's east coast.
  • 'They [the Russians] have reduced deliveries to 92million cubic metres per 24 hours compared to the promised 221million cubic metres without explanation,' said Valentin Zemlyansky of the Ukrainian gas company Naftogaz. 'We do not understand how we will deliver gas to Europe. This means that in a few hours problems with supplies to Europe will begin.'Wholesale gas prices have already risen on the back of the rallying price of oil, up 50 per cent in the last fortnight to more than $48 a barrel on the back of Middle East tension over Israeli incursions into Palestinian-held Gaza.
  • Eastern and central European countries are already reporting supply problems, including the Czech Republic which has the current presidency of the EU. The EU as a whole depends on Russia for 25 per cent of its gas supplies.
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    Ukraine stealing Russian gas and Putin sends a strong message to the EU. My guess is that the EU will tell the U.S. in no uncertain terms to control its puppet. Conceivably, this might be the triggering event for the EU to begin the transition to de-dollarization and warmer relations with Russia. You can bet that Foggy Bottom will be working late into the night on this.   
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Oil surges 8 percent as U.S. rig count plunges, shorts scramble - Yahoo Finance - 0 views

  • EW YORK (Reuters) - Oil prices roared back from six-year lows on Friday, rocketing more than 8 percent as a record weekly decline in U.S. oil drilling fueled a frenzy of short-covering. In a rally that may spur speculation that a seven-month price collapse has ended, global benchmark Brent crude shot up to more than $53 per barrel, its highest in more than three weeks in its biggest one-day gain since 2009. The late-session surge was primed by Baker Hughes data showing the number of rigs drilling for oil in the United States fell by 94 - or 7 percent - this week. Earlier gains were fueled by reports of Islamic State militants striking at Kurdish forces southwest of the oil-rich city of Kirkuk.
  • Poised for a bounce many thought was overdue, short traders raced to cover their positions on fears that the rout, sparked by massive U.S. shale crude supplies, was nearing its end. "The rig count drop was a lot more than people expected and it really got the market going," said Phil Flynn, analyst at Price Futures Group in Chicago. According to Baker Hughes, the decline in oil drilling rigs was the most since it began keeping records in 1987. With drillers having idled about 24 percent of their oil drilling rigs since the summer, some traders may be betting that an anticipated slowdown in U.S. oil production is nearer than expected.
  • Some are not convinced that the sell-off in oil is over. The rout began in June when Brent peaked at over $115 a barrel and accelerated in November after OPEC refused to cut its production. "There was a lot of short-covering before the month end from people wanting to take profit from the $40-odd lows, so it's not surprising that we rallied," said Tariq Zahir, managing member at Tyche Capital Advisors in Laurel Hollow in New York. But it will take a while for production to respond to lower drilling. "This doesn't change the fundamental outlook in oil. We are still about 2 million barrels oversupplied." Production from OPEC, or the Organization of the Petroleum Exporting Countries, rose in January to 30.37 million barrels per day (bpd), a Reuters poll showed, a sign that key members of the group were resolute about defending their market share. A Reuters poll shows oil prices may post only a mild recovery in the second half of the year, with prices still averaging less in 2015 than during the global financial crisis. (OILPOLL) Joseph Posillico, senior vice president of energy futures at Jefferies in New York, also warned of a short-term, short-covering rally that could be quickly reversed. "This is just the market being the market and we could give these all back in the next few sessions."
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    More indication that the economic oil bubble is bursting. 
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A year after Euro-Maidan, Ukraine coming apart at the seams | New Eastern Outlook - 0 views

  • The Ukrainian economy is bleeding out and rapidly approaching insolvency. The national currency, the hryvnia, has depreciated 68 percent in the past 12 months. Reports from Kiev indicate an ongoing disagreement between the central bank, which has tightened controls on capital movement to suppress capital flight, and Ukrainian Prime Minister Arseniy Yatsenyuk, who reportedly opposed capital control measures. The central bank lifted restrictions on capital movements on Yatsenyuk’s orders, sparking a further free-fall of the hryvnia, making it the world’s worst performing currency, according to Bloomberg. Ukrainian bonds have become the worst performing among 58 nations on Bloomberg’s Emerging Market Sovereign Bond Index, having plunged by 25 percent this year. Ukraine is now in the throes of a hyper-inflationary crisis, kept afloat by IMF loans that require gauging structural adjustments and austerity measures. GDP figures have dropped 6.5 percent in the last year, while the unemployment rate has climbed to 9.3 percent in 2014. The minimum wage has hit an all-time low of $43 USD, considerably below the wage equivalents of Bangladesh, Lesotho or Chad. According to reports, residents are considerably panicked as they stock up on foodstuffs in preparation for further economic turbulence. While a lull in fighting has taken place in the eastern regions of Donetsk and Luhansk, the ceasefire remains extremely fragile. The new authorities in Kiev would likely impose martial law across the country if further fighting breaks out between separatist militias and government forces, backed by quasi-fascist volunteer battalions.First appeared: http://journal-neo.org/2015/03/02/a-year-after-euro-maidan-ukraine-coming-apart-at-the-seams/
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Tomgram: Engelhardt, Who Rules Washington? | TomDispatch - 0 views

  • As every schoolchild knows, there are three check-and-balance branches of the U.S. government: the executive, Congress, and the judiciary. That’s bedrock Americanism and the most basic high school civics material. Only one problem: it’s just not so. During the Cold War years and far more strikingly in the twenty-first century, the U.S. government has evolved.  It sprouted a fourth branch: the national security state, whose main characteristic may be an unquenchable urge to expand its power and reach.  Admittedly, it still lacks certain formal prerogatives of governmental power.  Nonetheless, at a time when Congress and the presidency are in a check-and-balance ballet of inactivity that would have been unimaginable to Americans of earlier eras, the Fourth Branch is an ever more unchecked and unbalanced power center in Washington.  Curtained off from accountability by a penumbra of secrecy, its leaders increasingly are making nitty-gritty policy decisions and largely doing what they want, a situation illuminated by a recent controversy over the possible release of a Senate report on CIA rendition and torture practices.
  • From the Pentagon to the Department of Homeland Security to the labyrinthine world of intelligence, the rise to power of the national security state has been a spectacle of our time.  Whenever news of its secret operations begins to ooze out, threatening to unnerve the public, the White House and Congress discuss “reforms” which will, at best, modestly impede the expansive powers of that state within a state.  Generally speaking, its powers and prerogatives remain beyond constraint by that third branch of government, the non-secret judiciary.  It is deferred to with remarkable frequency by the executive branch and, with the rarest of exceptions, it has been supported handsomely with much obeisance and few doubts by Congress. And also keep in mind that, of the four branches of government, only two of them -- an activist Supreme Court and the national security state -- seem capable of functioning in a genuine policymaking capacity at the moment.
  • In this century, a full-scale second “Defense Department,” the Department of Homeland Security, was created.  Around it has grown up a mini-version of the military-industrial complex, with the usual set of consultants, K Street lobbyists, political contributions, and power relations: just the sort of edifice that President Eisenhower warned Americans about in his famed farewell address  in 1961.  In the meantime, the original military-industrial complex has only gained strength and influence. Increasingly, post-9/11, under the rubric of “privatization,” though it should more accurately have been called “corporatization,” the Pentagon took a series of crony companies off to war with it.  In the process, it gave “capitalist war” a more literal meaning, thanks to its wholesale financial support of, and the shrugging off of previously military tasks onto, a series of warrior corporations. Meanwhile, the 17 members of the U.S. Intelligence Community -- yes, there are 17 major intelligence outfits in the national security state -- have been growing, some at prodigious rates.  A number of them have undergone their own versions of corporatization, outsourcing many of their operations to private contractors in staggering numbers, so that we now have “capitalist intelligence” as well.  With the fears from 9/11 injected into society and the wind of terrorism at their backs, the Intelligence Community has had a remarkably free hand to develop surveillance systems that are now essentially “watching” everyone -- including, it seems, other branches of the government.
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  • All of this is or should be obvious, but remains surprisingly unacknowledged in our American world. The rise of the Fourth Branch began at a moment of mobilization for a global conflict, World War II.  It gained heft and staying power in the Cold War of the second half of the twentieth century, when that other superpower, the Soviet Union, provided the excuse for expansion of every sort.  Its officials bided their time in the years after the fall of the Soviet Union, when “terrorism” had yet to claim the landscape and enemies were in short supply.  In the post-9/11 era, in a phony “wartime” atmosphere, fed by trillions of taxpayer dollars, and under the banner of American “safety,” it has grown to unparalleled size and power.  So much so that it sparked a building boom in and around the national capital (as well as elsewhere in the country).  In their 2010 Washington Post series “Top Secret America,” Dana Priest and William Arkin offered this thumbnail summary of the extent of that boom for the U.S. Intelligence Community: “In Washington and the surrounding area,” they wrote, “33 building complexes for top-secret intelligence work are under construction or have been built since September 2001. Together they occupy the equivalent of almost three Pentagons or 22 U.S. Capitol buildings -- about 17 million square feet of space.”  And in 2014, the expansion is ongoing.
  • In that light, let’s turn to a set of intertwined events in Washington that have largely been dealt with in the media as your typical tempest in a teapot, a catfight among the vested and powerful.  I’m talking about the various charges and countercharges, anger, outrage, and irritation, as well as news of acts of seeming illegality now swirling around a 6,300-page CIA “torture report” produced but not yet made public by the Senate Intelligence Committee.  This ongoing controversy reveals a great deal about the nature of the checks and balances on the Fourth Branch of government in 2014.
  • Fourteen years into the twenty-first century, we’re so used to this sort of thing that we seldom think about what it means to let the CIA -- accused of a variety of crimes -- be the agency to decide what exactly can be known by the public, in conjunction with a deferential White House.  The Agency’s present director, it should be noted, has been a close confidant and friend of the president and was for years his key counterterrorism advisor.  To get a sense of what all this really means, you need perhaps to imagine that, in 2004, the 9/11 Commission was forced to turn its report over to Osama bin Laden for vetting and redaction before releasing it to the public.  Extreme as that may sound, the CIA is no less a self-interested party. And this interminable process has yet to end, although the White House is supposed to release something, possibly heavily redacted, as early as this coming week or perhaps in the dog days of August.
  • The fact is that, for the Fourth Branch, this remains the age of impunity.  Hidden in a veil of secrecy, bolstered by secret law and secret courts, surrounded by its chosen corporations and politicians, its power to define policy and act as it sees fit in the name of American safety is visibly on the rise.  No matter what setbacks it experiences along the way, its urge to expand and control seems, at the moment, beyond staunching.  In the context of the Senate’s torture report, the question at hand remains: Who rules Washington?
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    The indefatigable and perceptive Tom Englehardt finds formally secret features of the Dark State revealed in the ongoing political jockeying involving the CIA's torture, black prisons, and extarordinary rendition program. 
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Common currency: a forex scandal that epitomises the blindness in the banking crisis | ... - 0 views

  • The biggest open secret in the financial world has been confirmed. Regulators in the UK, the US and Switzerland have announced massive fines for some of the world’s largest banks for a manipulation of global currency markets that in its callous ubiquity says so much about the banking behaviours that sparked the global financial crisis. Fines levied by the UK regulator add up to £1.1 billion. The US regulator announced fines of $1.4 billion. Banks hit by these fines include UBS, Citi, JP Morgan, HSBC and RBS. Barclays is yet to come to a settlement on the back of the investigations.
  • The probe uncovered individuals traders within large banks who were working together in trading clubs which had names you would expect from the “ruthless narcissists” on BBC TV show, The Apprentice. These included “the players”, “the 3 musketeers” and “1 team, 1 dream”. These clubs worked together to influence the WM Reuters 4pm fix – essentially the official number used to fix currency rates. It shapes everything from how much we pay for currency when we go overseas to how much our pension fund pays when it wants to buy into an offshore investment. This is one of the core numbers in global finance.
  • So, it sounds important, but why should we actually care? Well global currency markets are worth over £5 trillion a day. They are the world’s biggest financial market. More than 40% of the trade takes place in London, and more than half of this trade is dominated by just four players: Citi, Deutsche Bank, UBS and Barclays. A small percentage of the trade relates to buying actual things (such as a shipment of coffee or oil). Most of it is either purely speculative or part of the process buying other speculative financial instruments. According to one piece in the Financial Times, there are really only a hundred or so people who really matter in this market. About 30 of them have been either placed on gardening leave or have been fired from their position in the last year.
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Summit of Community of Latin America and Caribbean States (CELAC) | Informaci... - 0 views

  • Another moment that sparked controversy during the two-day summit was the break of protocol by President Ortega of Nicaragua when he allowed Puerto Rico’s pro-independence leader, Ruben Berrios, to address the forum.
  • The summit concluded with a political declaration and other resolutions, among the most notable were the repudiation to the U.S. sanctions on Venezuela, support for the return of the Malvinas islands to Argentina, and the decolonization of Puerto Rico.
  • The Political Declaration of Belen – named after Belen county, in Costa Rica, where the summit was held – includes 94 different points including a commitment to multi-lateralism, dialogue between countries, peaceful solutions to conflicts, and unconditional support for the United Nations Charter and international law. Here are 5 important events and outcomes of the regional meeting: 1. Regions commit to eradicate hunger by 2025
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  • 2. Latin America and the Caribbean calls for end to U.S. meddling in member countries CELAC – created in opposition to the U.S.-dominated Organization of American States – firmly rejected U.S. sanctions against Venezuela, calling them a violation of international law and a threat to peace in the region.
  • In another knock to the interventionist attitude by U.S. policy makers, CELAC also reiterated its proclamation from its 2014 summit declaring Latin America and the Caribbean as a zone of peace. The regional bloc called on the international community to “respect this proclamation in its relations with the member states of CELAC, including the commitment to non-intervention, direct or indirect, in the internal affairs of any other state and to respect the principles of national sovereignty, equal rights, and the self-determination of peoples.” 3. CELAC calls for Obama to end U.S. Blockade on Cuba The CELAC bloc and its member states overwhelmingly backed the decision by the United States and Cuba to restore diplomatic relations and called on U.S. President Obama to end the blockade on Cuba.
  • 4. Leaders call for Puerto Rico to be included in future CELAC meetings Nicaraguan President Daniel Ortega offered his speaking time to Puerto Rican independence leader Ruben Berrios Martinez, who called on the bloc to support the island’s struggle against colonialism. Regional leaders responded with calls for independence for the island and a commitment to include representation from the island in future meetings of CELAC.
  • The bloc also approved resolutions backing Argentina’s claim to the Malvinas as well as supporting the peace process in Colombia. The special declarations also called for a new international financial structure, financing for development projects and demanded action on climate change.
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White House: Israel 'cherry-picking' intel that distorts Iran talks | TheHill - 0 views

  • The White House is accusing Israel of "cherry-picking" information that distorts the U.S. position in nuclear talks with Iran.“There's no question that some of the things that the Israelis have said in characterizing our negotiating position have not been accurate. There's no question about that,” White House press secretary Josh Earnest said during a press briefing on Wednesday.ADVERTISEMENT"We've also been very clear about the fact that the United States is not going to be in a position of negotiating this agreement in public, particularly when we see that there is a continued practice of cherry-picking specific pieces of information and using them out of context to distort the negotiating position of the United States.”The White House spokesman said those involved in the talks are obligated to act in “good faith.”“And that means giving negotiators the room and the space to negotiate,” Earnest said.
  • Israeli Prime Minister Benjamin Netanyahu and his government have long expressed alarm over the talks that seek to dismantle Iran’s illicit nuclear effort in exchange for relief from economic sanctions.Netanyahu is expected to lobby against the potential deal, when he visits Washington in the coming weeks to address Congress. That invitation from Speaker John Boehner (R-Ohio) without the knowledge of President Obama has sparked a partisan fight, with many Democrats saying they will skip the speech.Netanyahu has warned that a nuclear-armed Iran would be an existential threat to Israel.The ongoing nuclear talks are between Iran and the P5+1 group, including the U.S., Russia, China, the United Kingdom, France and Germany. The U.S. has kept Israel, a close ally, informed on developments.Earnest pushed back against reports that the administration was cutting the Israelis out of the loop on the negotiations.
  • "You could arguably make the case that there's no country that is not participating in the negotiations that has greater insight into what's going on at that negotiating table,” said Earnest of Israel.He added that no nation “has a clearer stake in the outcome of these negotiations.”“The United States has a clear stake in this outcome, but so does Israel,” said Earnest. “And that's why we're going to continue to consult with them about these talks.”
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Swimming with the Sharks: Goldman Sachs, School Districts, and Capital Appreciation Bon... - 0 views

  • In 2008, after collecting millions of dollars in fees to help California sell its bonds, Goldman urged its bigger clients to place investment bets against those bonds, in order to profit from a financial crisis that was sparked in the first place by irresponsible Wall Street speculation. Alarmed California officials warned that these short sales would jeopardize the state’s bond rating and drive up interest rates. But that result also served Goldman, which had sold credit default swaps on the bonds, since the price of the swaps rose along with the risk of default.
  • In 2009, the lenders’ lobbying group than proposed and promoted AB1388, a California bill eliminating the debt ceiling requirement on long-term debt for school districts. After it passed, bankers traveled all over the state pushing something called “capital appreciation bonds” (CABs) as a tool to vault over legal debt limits. (Think Greece again.) Also called payday loans for school districts, CABs have now been issued by more than 400 California districts, some with repayment obligations of up to 20 times the principal advanced (or 2000%).
  • The controversial bonds came under increased scrutiny in August 2012, following a report that San Diego County’s Poway Unified would have to pay $982 million for a $105 million CAB it issued. Goldman Sachs made $1.6 million on a single capital appreciation deal with the San Diego Unified School District.
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  • . . . AB1388, signed by then-Gov. Arnold Schwarzenegger in 2009, [gave] banks the green light to lure California school boards into issuing bonds to raise quick money to build schools. Unlike conventional bonds that have to be paid off on a regular basis, the bonds approved in AB1388 relaxed regulatory safeguards and allowed them to be paid back 25 to 40 years in the future. The problem is that from the time the bonds are issued until payment is due, interest accrues and compounds at exorbitant rates, requiring a balloon payment in the millions of dollars. . . . Wall Street exploited the school boards’ lack of business acumen and proposed the bonds as blank checks written against taxpayers’ pocketbooks. One school administrator described a Wall Street meeting to discuss the system as like “swimming with the big sharks.” Wall Street has preyed on these school boards because of the millions of dollars in commissions. Banks, financial advisers and credit rating firms have billed California public entities almost $400 million since 2007. [State Treasurer] Lockyer described this as “part of the ‘new’ Wall Street,” which “has done this kind of thing on the private investor side for years, then the housing market and now its public entities.”
  • The Federal Reserve could have made virtually-interest-free loans available to local governments, as it did for banks. But the Fed (whose twelve branches are 100% owned by private banks) declined. As noted by Cate Long on Reuters:
  • The Fed has said that it will not buy muni bonds or lend directly to states or municipal issuers. But be sure if yields rise high enough Merrill Lynch, Goldman Sachs and JP Morgan will be standing ready to “save” these issuers. There is no “lender of last resort” for muniland.
  • Among the hundreds of California school districts signing up for CABs were fifteen in Orange County. The Anaheim-based Savanna School District took on the costliest of these bonds, issuing $239,721 in CABs in 2009 for which it will have to repay $3.6 million by the final maturity date in 2034. That works out to $15 for every $1 borrowed. Santa Ana Unified issued $34.8 million in CABs in 2011. It will have to repay $305.5 million by the maturity date in 2047, or $9.76 for every dollar borrowed. Placentia-Yorba Linda Unified issued $22.1 million in capital appreciation bonds in 2011. It will have to repay $281 million by the maturity date in 2049, or $12.73 for every dollar borrowed.
  • In 2013, California finally passed a law limiting debt service on CABs to four times principal, and limiting their maturity to a maximum of 25 years. But the bill is not retroactive. In several decades, the 400 cities that have been drawn into these shark-infested waters could be facing municipal bankruptcy – for capital “improvements” that will by then be obsolete and need to be replaced.
  • Then-State Treasurer Bill Lockyer called the bonds “debt for the next generation.” But some economists argue that it is a transfer of wealth, not between generations, but between classes – from the poor to the rich. Capital investments were once funded with property taxes, particularly those paid by wealthy homeowners and corporations. But California’s property tax receipts were slashed by Proposition 13 and the housing crisis, forcing school costs to be borne by middle-class households and the students themselves.
  • According to Demos, per-student funding has been slashed since 2008 in every state but one – the indomitable North Dakota. What is so different about that state? Some commentators credit the oil boom, but other states with oil have not fared so well. And the boom did not actually hit in North Dakota until 2010. The budget of every state but North Dakota had already slipped into the red by the spring of 2009.
  • One thing that does single the state out is that North Dakota alone has its own depository bank.
  • The state-owned Bank of North Dakota (BND) was making 1% loans to school districts even in December 2014, when global oil prices had dropped by half. That month, the BND granted a $10 million construction loan to McKenzie County Public School No. 1, at an interest rate of 1% payable over 20 years. Over the life of the loan, that works out to $.20 in simple interest or $.22 in compound interest for every $1 borrowed. Compare that to the $15 owed for every dollar borrowed by Anaheim’s Savanna School District or the $10 owed for every dollar borrowed by Santa Ana Unified.
  • How can the BND afford to make these very low interest loans and still turn a profit? The answer is that its costs are very low. It has no exorbitantly-paid executives; pays no bonuses, fees, or commissions; pays no dividends to private shareholders; and has low borrowing costs. It does not need to advertise for depositors (it has a captive deposit base in the state itself) or for borrowers (it is a wholesale bank that partners with local banks, which find the borrowers). The BND also has no losses from derivative trades gone wrong. It engages in old-fashioned conservative banking and does not speculate in derivatives. Unlike the vampire squids of Wall Street, it is not motivated to maximize its bottom line in a predatory way. Its mandate is simply to serve the public interest.
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    " Remember when Goldman Sachs - dubbed by Matt Taibbi the Vampire Squid - sold derivatives to Greece so the government could conceal its debt, then bet against that debt, driving it up? It seems that the ubiquitous investment bank has also put the squeeze on California and its school districts. Not that Goldman was alone in this; but the unscrupulous practices of the bank once called the undisputed king of the municipal bond business epitomize the culture of greed that has ensnared students and future generations in unrepayable debt."
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Iceland convicts bad bankers and says other nations can act | Reuters - 0 views

  • Iceland's Supreme Court has upheld convictions of market manipulation for four former executives of the failed Kaupthing bank in a landmark case that the country's special prosecutor said showed it was possible to crack down on fraudulent bankers. Hreidar Mar Sigurdsson, Kaupthing's former chief executive, former chairman Sigurdur Einarsson, former CEO of Kaupthing Luxembourg Magnus Gudmundsson, and Olafur Olafsson, the bank's second largest shareholder at the time, were all sentenced on Thursday to between four and five and a half years.The verdict is the heaviest for financial fraud in Iceland's history, local media said. Kaupthing collapsed under heavy debts after the 2008 financial crisis and the four former executives now live abroad. Though they sometimes returned to Iceland to collaborate with the court investigation, none were present on Thursday.Iceland's government appointed a special prosecutor to investigate its bankers after the world's financial systems were rocked by the discovery of huge debts and widespread poor corporate governance. He said Thursday's ruling was a signal to countries slow to pursue similar cases that no individual was too big to be prosecuted.
  • "This case...sends a strong message that will wake up discussion," special prosecutor Olafur Hauksson told Reuters. "It shows that these financial cases may be hard, but they can also produce results."Not all of Iceland's prosecutions have succeeded. But the country's efforts contrast with the United States and particularly Europe, where though some banks have been fined, few executives have been tried and voters suffering post-crisis austerity conditions feel bankers got off lightly.A recent scandal at the Swiss private bank of Europe's biggest lender HSBC has highlighted the controversy again and sparked a political row about whether the bank did enough to pursue possible tax dodgers..
  • Iceland struggled initially to appoint a special prosecutor. Hauksson, 50, a policeman from a small fishing village, was encouraged to put in for the job after the initial advertisement drew no applications. Nor have all of his prosecutions been trouble-free: two former bank executives were acquitted in one case, while sentences imposed on others have been criticized for being too light.However, Icelandic lower courts have convicted the chief executives of all three of its largest banks for their responsibility in a crisis that prosecutors said highlighted the operations of a club of wealth financiers in a country of just 320,000 people.They also convicted former chief executives of two other major banks, Glitnir and Landsbanki, for charges ranging from fraud and market manipulation.Parliament relaxed bank secrecy laws in Iceland to help the prosecutors investigate bank documents without court orders."Why should we have a part of our society that is not being policed or without responsibility?" Hauksson said. "It is dangerous that someone is too big to investigate - it gives a sense there is a safe haven."Seven criminal cases involving bankers have made it to the Supreme Court, which upheld six of them. Five more, including cases of CEOs - are due to be heard by the top court. Another 14 cases are awaiting possible prosecution, Hauksson said.
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Iceland looks at ending boom and bust with radical money plan - Telegraph - 0 views

  • Iceland's government is considering a revolutionary monetary proposal - removing the power of commercial banks to create money and handing it to the central bank. The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled "A better monetary system for Iceland". "The findings will be an important contribution to the upcoming discussion, here and elsewhere, on money creation and monetary policy," Prime Minister Sigmundur David Gunnlaugsson said. The report, commissioned by the premier, is aimed at putting an end to a monetary system in place through a slew of financial crises, including the latest one in 2008.
  • He argued the central bank was unable to contain the credit boom, allowing inflation to rise and sparking exaggerated risk-taking and speculation, the threat of bank collapse and costly state interventions. In Iceland, as in other modern market economies, the central bank controls the creation of banknotes and coins but not the creation of all money, which occurs as soon as a commercial bank offers a line of credit. The central bank can only try to influence the money supply with its monetary policy tools. Under the so-called Sovereign Money proposal, the country's central bank would become the only creator of money. "Crucially, the power to create money is kept separate from the power to decide how that new money is used," Mr Sigurjonsson wrote in the proposal.
  • Banks would continue to manage accounts and payments, and would serve as intermediaries between savers and lenders. Mr Sigurjonsson, a businessman and economist, was one of the masterminds behind Iceland's household debt relief programme launched in May 2014 and aimed at helping the many Icelanders whose finances were strangled by inflation-indexed mortgages signed before the 2008 financial crisis. The small Nordic country was hit hard as the crash of US investment bank Lehman Brothers caused the collapse of its three largest banks. Iceland then became the first western European nation in 25 years to appeal to the International Monetary Fund to save its battered economy. Its GDP fell by 5.1pc in 2009 and 3.1pc in 2010 before it started rising again.
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Iceland Stuns Banks: Plans To Take Back The Power To Create Money | Global Research - C... - 0 views

  • Who knew that the revolution would start with those radical Icelanders? It does, though. One Frosti Sigurjonsson, a lawmaker from the ruling Progress Party, issued a report today that suggests taking the power to create money away from commercial banks, and hand it to the central bank and, ultimately, Parliament. Can’t see commercial banks in the western world be too happy with this. They must be contemplating wiping the island nation off the map. If accepted in the Iceland parliament , the plan would change the game in a very radical way. It would be successful too, because there is no bigger scourge on our economies than commercial banks creating money and then securitizing and selling off the loans they just created the money (credit) with. Everyone, with the possible exception of Paul Krugman, understands why this is a very sound idea. Agence France Presse reports: Iceland Looks At Ending Boom And Bust With Radical Money Plan Iceland’s government is considering a revolutionary monetary proposal – removing the power of commercial banks to create money and handing it to the central bank. The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled “A better monetary system for Iceland”.
  • “The findings will be an important contribution to the upcoming discussion, here and elsewhere, on money creation and monetary policy,” Prime Minister Sigmundur David Gunnlaugsson said. The report, commissioned by the premier, is aimed at putting an end to a monetary system in place through a slew of financial crises, including the latest one in 2008.
  • According to a study by four central bankers, the country has had “over 20 instances of financial crises of different types” since 1875, with “six serious multiple financial crisis episodes occurring every 15 years on average”. Mr Sigurjonsson said the problem each time arose from ballooning credit during a strong economic cycle. He argued the central bank was unable to contain the credit boom, allowing inflation to rise and sparking exaggerated risk-taking and speculation, the threat of bank collapse and costly state interventions. In Iceland, as in other modern market economies, the central bank controls the creation of banknotes and coins but not the creation of all money, which occurs as soon as a commercial bank offers a line of credit. The central bank can only try to influence the money supply with its monetary policy tools.
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  • Under the so-called Sovereign Money proposal, the country’s central bank would become the only creator of money. “Crucially, the power to create money is kept separate from the power to decide how that new money is used,” Mr Sigurjonsson wrote in the proposal. “As with the state budget, the parliament will debate the government’s proposal for allocation of new money,” he wrote. Banks would continue to manage accounts and payments, and would serve as intermediaries between savers and lenders. Mr Sigurjonsson, a businessman and economist, was one of the masterminds behind Iceland’s household debt relief programme launched in May 2014 and aimed at helping the many Icelanders whose finances were strangled by inflation-indexed mortgages signed before the 2008 financial crisis.
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    In closely related news, a Pentagon spokesman announced that soldiers of the U.S. Army's 101st Airborne Brigade and 22nd and 26th Marine Expeditionary Units were in the "mopping up stage" of routing terrorists who had captured the city of Reykjavík, Iceland in an April 7, 2015 surpise attack. According to knowledgeable sources in the White House, the terrorist invasion was reported by an unidentified official of the Federal Reserve Bank of New York, who had received urgent telephone calls from counterparts in Iceland's central bank. "We're still assessing the situation, but it looks like all members of the Icelandic government were brutally executed by the terrorists just before they retreated," Rear Adm. John Kirby said. Asked for the name of the terrorist organization that carried out the attack, Adm. Kirby said that the name had not yet been declassified, but said that he hoped to be able to announce that information soon.     
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Israel Spied on Iran Nuclear Talks With U.S. - WSJ - 0 views

  • Soon after the U.S. and other major powers entered negotiations last year to curtail Iran’s nuclear program, senior White House officials learned Israel was spying on the closed-door talks. The spying operation was part of a broader campaign by Israeli Prime Minister Benjamin Netanyahu’s government to penetrate the negotiations and then help build a case against the emerging terms of the deal, current and former U.S. officials said. In addition to eavesdropping, Israel acquired information from confidential U.S. briefings, informants and diplomatic contacts in Europe, the officials said.
  • The espionage didn’t upset the White House as much as Israel’s sharing of inside information with U.S. lawmakers and others to drain support from a high-stakes deal intended to limit Iran’s nuclear program, current and former officials said. “It is one thing for the U.S. and Israel to spy on each other. It is another thing for Israel to steal U.S. secrets and play them back to U.S. legislators to undermine U.S. diplomacy,” said a senior U.S. official briefed on the matter.
  • The U.S. and Israel, longtime allies who routinely swap information on security threats, sometimes operate behind the scenes like spy-versus-spy rivals. The White House has largely tolerated Israeli snooping on U.S. policy makers—a posture Israel takes when the tables are turned. The White House discovered the operation, in fact, when U.S. intelligence agencies spying on Israel intercepted communications among Israeli officials that carried details the U.S. believed could have come only from access to the confidential talks, officials briefed on the matter said. Israeli officials denied spying directly on U.S. negotiators and said they received their information through other means, including close surveillance of Iranian leaders receiving the latest U.S. and European offers. European officials, particularly the French, also have been more transparent with Israel about the closed-door discussions than the Americans, Israeli and U.S. officials said.
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  • Mr. Netanyahu and Israeli Ambassador Ron Dermer early this year saw a rapidly closing window to increase pressure on Mr. Obama before a key deadline at the end of March, Israeli officials said. Using levers of political influence unique to Israel, Messrs. Netanyahu and Dermer calculated that a lobbying campaign in Congress before an announcement was made would improve the chances of killing or reshaping any deal. They knew the intervention would damage relations with the White House, Israeli officials said, but decided that was an acceptable cost. The campaign may not have worked as well as hoped, Israeli officials now say, because it ended up alienating many congressional Democrats whose support Israel was counting on to block a deal. Obama administration officials, departing from their usual description of the unbreakable bond between the U.S. and Israel, have voiced sharp criticism of Messrs. Netanyahu and Dermer to describe how the relationship has changed.
  • “People feel personally sold out,” a senior administration official said. “That’s where the Israelis really better be careful because a lot of these people will not only be around for this administration but possibly the next one as well.” This account of the Israeli campaign is based on interviews with more than a dozen current and former U.S. and Israeli diplomats, intelligence officials, policy makers and lawmakers. Weakened ties Distrust between Mr. Netanyahu and Mr. Obama had been growing for years but worsened when Mr. Obama launched secret talks with Iran in 2012. The president didn’t tell Mr. Netanyahu because of concerns about leaks, helping set the stage for the current standoff, according to current and former U.S. and Israeli officials. U.S. officials said Israel has long topped the list of countries that aggressively spy on the U.S., along with China, Russia and France. The U.S. expends more counterintelligence resources fending off Israeli spy operations than any other close ally, U.S. officials said.
  • A senior official in the prime minister’s office said Monday: “These allegations are utterly false. The state of Israel does not conduct espionage against the United States or Israel’s other allies. The false allegations are clearly intended to undermine the strong ties between the United States and Israel and the security and intelligence relationship we share.” Current and former Israeli officials said their intelligence agencies scaled back their targeting of U.S. officials after the jailing nearly 30 years ago of American Jonathan Pollard for passing secrets to Israel. While U.S. officials may not be direct targets, current and former officials said, Israeli intelligence agencies sweep up communications between U.S. officials and parties targeted by the Israelis, including Iran. Americans shouldn’t be surprised, said a person familiar with the Israeli practice, since U.S. intelligence agencies helped the Israelis build a system to listen in on high-level Iranian communications.
  • As secret talks with Iran progressed into 2013, U.S. intelligence agencies monitored Israel’s communications to see if the country knew of the negotiations. Mr. Obama didn’t tell Mr. Netanyahu until September 2013. Israeli officials, who said they had already learned about the talks through their own channels, told their U.S. counterparts they were upset about being excluded. “ ‘Did the administration really believe we wouldn’t find out?’ ” Israeli officials said, according to a former U.S. official.
  • The episode cemented Mr. Netanyahu’s concern that Mr. Obama was bent on clinching a deal with Iran whether or not it served Israel’s best interests, Israeli officials said. Obama administration officials said the president was committed to preventing Iran from developing nuclear weapons. Mr. Dermer started lobbying U.S. lawmakers just before the U.S. and other powers signed an interim agreement with Iran in November 2013. Mr. Netanyahu and Mr. Dermer went to Congress after seeing they had little influence on the White House. Before the interim deal was made public, Mr. Dermer gave lawmakers Israel’s analysis: The U.S. offer would dramatically undermine economic sanctions on Iran, according to congressional officials who took part. After learning about the briefings, the White House dispatched senior officials to counter Mr. Dermer. The officials told lawmakers that Israel’s analysis exaggerated the sanctions relief by as much as 10 times, meeting participants said.
  • When the next round of negotiations with Iran started in Switzerland last year, U.S. counterintelligence agents told members of the U.S. negotiating team that Israel would likely try to penetrate their communications, a senior Obama administration official said. The U.S. routinely shares information with its European counterparts and others to coordinate negotiating positions. While U.S. intelligence officials believe secured U.S. communications are relatively safe from the Israelis, they say European communications are vulnerable. Mr. Netanyahu and his top advisers received confidential updates on the Geneva talks from Undersecretary of State for Political Affairs Wendy Sherman and other U.S. officials, who knew at the time that Israeli intelligence was working to fill in any gaps. The White House eventually curtailed the briefings, U.S. officials said, withholding sensitive information for fear of leaks. Current and former Israeli officials said their intelligence agencies can get much of the information they seek by targeting Iranians and others in the region who are communicating with countries in the talks. In November, the Israelis learned the contents of a proposed deal offered by the U.S. but ultimately rejected by Iran, U.S. and Israeli officials said. Israeli officials told their U.S. counterparts the terms offered insufficient protections.
  • U.S. officials urged the Israelis to give the negotiations a chance. But Mr. Netanyahu’s top advisers concluded the emerging deal was unacceptable. The White House was making too many concessions, Israeli officials said, while the Iranians were holding firm. Obama administration officials reject that view, saying Israel was making impossible demands that Iran would never accept. “The president has made clear time and again that no deal is better than a bad deal,” a senior administration official said. In January, Mr. Netanyahu told the White House his government intended to oppose the Iran deal but didn’t explain how, U.S. and Israeli officials said. On Jan. 21, House Speaker John Boehner (R., Ohio) announced Mr. Netanyahu would address a joint meeting of Congress. That same day, Mr. Dermer and other Israeli officials visited Capitol Hill to brief lawmakers and aides, seeking a bipartisan coalition large enough to block or amend any deal. Most Republicans were already prepared to challenge the White House on the negotiations, so Mr. Dermer focused on Democrats. “This deal is bad,” he said in one briefing, according to participants.
  • A spokesman for the Israeli embassy in Washington, Aaron Sagui, said Mr. Dermer didn’t launch a special campaign on Jan 21. Mr. Dermer, the spokesperson said, has “consistently briefed both Republican and Democrats, senators and congressmen, on Israel’s concerns regarding the Iran negotiations for over a year.” Mr. Dermer and other Israeli officials over the following weeks gave lawmakers and their aides information the White House was trying to keep secret, including how the emerging deal could allow Iran to operate around 6,500 centrifuges, devices used to process nuclear material, said congressional officials who attended the briefings. The Israeli officials told lawmakers that Iran would also be permitted to deploy advanced IR-4 centrifuges that could process fuel on a larger scale, meeting participants and administration officials said. Israeli officials said such fuel, which under the emerging deal would be intended for energy plants, could be used to one day build nuclear bombs. The information in the briefings, Israeli officials said, was widely known among the countries participating in the negotiations. When asked in February during one briefing where Israel got its inside information, the Israeli officials said their sources included the French and British governments, as well as their own intelligence, according to people there.
  • “Ambassador Dermer never shared confidential intelligence information with members of Congress,” Mr. Sagui said. “His briefings did not include specific details from the negotiations, including the length of the agreement or the number of centrifuges Iran would be able to keep.” Current and former U.S. officials confirmed that the number and type of centrifuges cited in the briefings were part of the discussions. But they said the briefings were misleading because Israeli officials didn’t disclose concessions asked of Iran. Those included giving up stockpiles of nuclear material, as well as modifying the advanced centrifuges to slow output, these officials said. The administration didn’t brief lawmakers on the centrifuge numbers and other details at the time because the information was classified and the details were still in flux, current and former U.S. officials said. Unexpected reaction The congressional briefings and Mr. Netanyahu’s decision to address a joint meeting of Congress on the emerging deal sparked a backlash among many Democratic lawmakers, congressional aides said.
  • On Feb. 3, Mr. Dermer huddled with Sen. Joe Manchin, a West Virginia Democrat, who said he told Mr. Dermer it was a breach of protocol for Mr. Netanyahu to accept an invitation from Mr. Boehner without going through the White House. Mr. Manchin said he told Mr. Dermer he would attend the prime minister’s speech to Congress, but he was noncommittal about supporting any move by Congress to block a deal. Mr. Dermer spent the following day doing damage control with Sen. Kirsten Gillibrand, a New York Democrat, congressional aides said. Two days later, Mr. Dermer met with Sen. Dianne Feinstein of California, the top Democrat on the SenateIntelligence Committee, at her Washington, D.C., home. He pressed for her support because he knew that she, too, was angry about Mr. Netanyahu’s planned appearance. Ms. Feinstein said afterward she would oppose legislation allowing Congress to vote down an agreement.
  • Congressional aides and Israeli officials now say Israel’s coalition in Congress is short the votes needed to pass legislation that could overcome a presidential veto, although that could change. In response, Israeli officials said, Mr. Netanyahu was pursuing other ways to pressure the White House. This week, Mr. Netanyahu sent a delegation to France, which has been more closely aligned with Israel on the nuclear talks and which could throw obstacles in Mr. Obama’s way before a deal is signed. The Obama administration, meanwhile, is stepping up its outreach to Paris to blunt the Israeli push. “If you’re wondering whether something serious has shifted here, the answer is yes,” a senior U.S. official said. “These things leave scars.”
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    Obama is moving preemptively to blunt Israel's influence in Congress on the Iran negotiation.
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Running for Cover: A Sham Air Force Summit Can't Fix the Close Air Support Gap Created ... - 0 views

  • “I can’t wait to be relieved of the burdens of close air support,” Major General James Post, the vice commander of Air Combat Command (ACC), allegedly told a collection of officers at a training session in August 2014. As with his now notorious warning that service members would be committing treason if they communicated with Congress about the successes of the A-10, Major General Post seems to speak for the id of Air Force headquarters’ true hostility towards the close air support (CAS) mission. Air Force four-stars are working hard to deny this hostility to the public and Congress, but their abhorrence of the mission has been demonstrated through 70 years of Air Force headquarters’ budget decisions and combat actions that have consistently short-changed close air support. For the third year in a row (many have already forgotten the attempt to retire 102 jets in the Air Force’s FY 2013 proposal), the Air Force has proposed retiring some or all of the A-10s, ostensibly to save money in order to pay for “modernization.” After failing to convince Congress to implement their plan last year (except for a last minute partial capitulation by retiring Senate and House Armed Services Committee chairmen Senator Carl Levin (D-MI) and Representative Buck McKeon (R-CA)) and encountering uncompromising pushback this year, Air Force headquarters has renewed its campaign with more dirty tricks.
  • First, Air Force headquarters tried to fight back against congressional skepticism by releasing cherry-picked data purporting to show that the A-10 kills more friendlies and civilians than any other U.S. Air Force plane, even though it actually has one of the lowest fratricide and civilian casualty rates. With those cooked statistics debunked and rejected by Senate Armed Services Chairman Senator John McCain (R-AZ), Air Force headquarters hastily assembled a joint CAS “Summit” to try to justify dumping the A-10. Notes and documents from the Summit meetings, now widely available throughout the Air Force and shared with the Project On Government Oversight’s Center for Defense Information (CDI), reveal that the recommendations of the Summit working groups were altered by senior Air Force leaders to quash any joint service or congressional concerns about the coming gaps in CAS capabilities. Air Force headquarters needed this whitewash to pursue, yet again, its anti-A-10 crusade without congressional or internal-Pentagon opposition.
  • The current A-10 divestment campaign, led by Air Force Chief of Staff Mark Welsh, is only one in a long chain of Air Force headquarters’ attempts by bomber-minded Air Force generals to get rid of the A-10 and the CAS mission. The efforts goes as far back as when the A-10 concept was being designed in the Pentagon, following the unfortunate, bloody lessons learned from the Vietnam War. For example, there was a failed attempt in late-1980s to kill off the A-10 by proposing to replace it with a supposedly CAS-capable version of the F-16 (the A-16). Air Force headquarters tried to keep the A-10s out of the first Gulf War in 1990, except for contingencies. A token number was eventually brought in at the insistence of the theater commander, and the A-10 so vastly outperformed the A-16s that the entire A-16 effort was dismantled. As a reward for these A-10 combat successes, Air Force headquarters tried to starve the program by refusing to give the A-10 any funds for major modifications or programmed depot maintenance during the 1990s. After additional combat successes in the Iraq War, the Air Force then attempted to unload the A-10 fleet in 2004.
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  • To ground troops and the pilots who perform the mission, the A-10 and the CAS mission are essential and crucial components of American airpower. The A-10 saves so many troop lives because it is the only platform with the unique capabilities necessary for effective CAS: highly maneuverable at low speeds, unmatched survivability under ground fire, a longer loiter time, able to fly more sorties per day that last longer, and more lethal cannon passes than any other fighter. These capabilities make the A-10 particularly superior in getting in close enough to support our troops fighting in narrow valleys, under bad weather, toe-to-toe with close-in enemies, and/or facing fast-moving targets. For these reasons, Army Chief of Staff General Ray Odierno has called the A-10 “the best close air support aircraft.” Other Air Force platforms can perform parts of the mission, though not as well; and none can do all of it. Senator Kelly Ayotte (R-NH) echoed the troops’ combat experience in a recent Senate Armed Services committee hearing: “It's ugly, it's loud, but when it comes in…it just makes a difference.”
  • In 2014, Congress was well on the way to roundly rejecting the Air Force headquarters’ efforts to retire the entire fleet of 350 A-10s. It was a strong, bipartisan demonstration of support for the CAS platform in all four of Congress’s annual defense bills. But in the final days of the 113th Congress, a “compromise” heavily pushed by the Air Force was tucked into the National Defense Authorization Act for FY 2015. The “compromise” allowed the Air Force to move A-10s into virtually retired “backup status” as long as the Cost Assessment and Program Evaluation (CAPE) office in DoD certified that the measure was the only option available to protect readiness. CAPE, now led by former Assistant Secretary of the Air Force for Financial Management and Comptroller Jamie Morin, duly issued that assessment—though in classified form, thus making it unavailable to the public. In one of his final acts as Secretary of Defense, Chuck Hagel then approved moving 18 A-10s to backup status.
  • The Air Force intends to replace the A-10 with the F-35. But despite spending nearly $100 billion and 14 years in development, the plane is still a minimum of six years away from being certified ready for any real—but still extremely limited—form of CAS combat. The A-10, on the other hand, is continuing to perform daily with striking effectiveness in Afghanistan, Iraq, and Syria—at the insistence of the CENTCOM commander and despite previous false claims from the Air Force that A-10s can’t be sent to Syria. A-10s have also recently been sent to Europe to be available for contingencies in Ukraine—at the insistence of the EUCOM Commander. These demands from active theaters are embarrassing and compelling counterarguments to the Air Force’s plea that the Warthog is no longer relevant or capable and needs to be unloaded to help pay for the new, expensive, more high-tech planes that Air Force headquarters vastly prefers even though the planes are underperforming.
  • So far, Congress has not been any more sympathetic to this year’s continuation of General Welsh’s campaign to retire the A-10. Chairman McCain rejected the Air Force’s contention that the F-35 was ready enough to be a real replacement for the A-10 and vowed to reverse the A-10 retirement process already underway. Senator Ayotte led a letter to Defense Secretary Ashton Carter with Senators Tom Cotton (R-AR), Lindsey Graham (R-SC), Thom Tillis (R-NC), Roger Wicker (R-MS), Mike Crapo (R-ID), Johnny Isakson (R-GA), and Richard Burr (R-NC) rebuking Hagel’s decision to place 18 A-10s in backup inventory. Specifically, the Senators called the decision a “back-door” divestment approved by a “disappointing rubber stamp” that guts “the readiness of our nation’s best close air support aircraft.” In the House, Representative Martha McSally (R-AZ) wrote to Secretary Carter stating that she knew from her own experience as a former A-10 pilot and 354th Fighter Squadron commander that the A-10 is uniquely capable for combat search and rescue missions, in addition to CAS, and that the retirement of the A-10 through a classified assessment violated the intent of Congress’s compromise with the Air Force:
  • Some in the press have been similarly skeptical of the Air Force’s intentions, saying that the plan “doesn’t add up,” and more colorfully, calling it “total bullshit and both the American taxpayer and those who bravely fight our wars on the ground should be furious.” Those reports similarly cite the Air Force’s longstanding antagonism to the CAS mission as the chief motive for the A-10’s retirement.
  • By announcing that pilots who spoke to Congress about the A-10 were “committing treason,” ACC Vice Commander Major General James Post sparked an Inspector General investigation and calls for his resignation from POGO and other whistleblower and taxpayer groups. That public relations debacle made it clear that the Air Force needed a new campaign strategy to support its faltering A-10 divestment campaign. On the orders of Air Force Chief of Staff General Mark Welsh, General Herbert “Hawk” Carlisle—the head of Air Combat Command—promptly announced a joint CAS Summit, allegedly to determine the future of CAS. It was not the first CAS Summit to be held (the most recent previous Summit was held in 2009), but it was the first to receive so much fanfare. As advertised, the purpose of the Summit was to determine and then mitigate any upcoming risks and gaps in CAS mission capabilities. But notes, documents, and annotated briefing slides reviewed by CDI reveal that what the Air Force publicly released from the Summit is nothing more than a white-washed assessment of the true and substantial operational risks of retiring the A-10.
  • Just prior to the Summit, a working group of approximately 40 people, including CAS-experienced Air Force service members, met for three days at Davis-Monthan Air Force Base to identify potential risks and shortfalls in CAS capabilities. But Air Force headquarters gave them two highly restrictive ground rules: first, assume the A-10s are completely divested, with no partial divestments to be considered; and second, assume the F-35 is fully CAS capable by 2021 (an ambitious assumption at best). The working groups included A-10 pilots, F-16 pilots, and Joint Terminal Attack Controllers (JTACs), all with combat-based knowledge of the CAS platforms and their shortfalls and risks. They summarized their findings with slides stating that the divestment would “cause significant CAS capability and capacity gaps for 10 to 12 years,” create training shortfalls, increase costs per flying hour, and sideline over 200 CAS-experienced pilots due to lack of cockpits for them. Additionally, they found that after the retirement of the A-10 there would be “very limited” CAS capability at low altitudes and in poor weather, “very limited” armor killing capability, and “very limited” ability to operate in the GPS-denied environment that most experts expect when fighting technically competent enemies with jamming technology, an environment that deprives the non-A-10 platforms of their most important CAS-guided munition. They also concluded that even the best mitigation plans they were recommending would not be sufficient to overcome these problems and that significant life-threatening shortfalls would remain.
  • General Carlisle was briefed at Davis-Monthan on these incurable risks and gaps that A-10 divestment would cause. Workshop attendees noted that he understood gaps in capability created by retiring the A-10 could not be solved with the options currently in place. General Carlisle was also briefed on the results of the second task to develop a list of requirements and capabilities for a new A-X CAS aircraft that could succeed the A-10. “These requirements look a lot like the A-10, what are we doing here?” he asked. The slides describing the new A-X requirements disappeared from subsequent Pentagon Summit presentations and were never mentioned in any of the press releases describing the summit.
  • At the four-day Pentagon Summit the next week, the Commander of the 355th Fighter Wing, Davis-Monthan Air Force Base, Col. James P. Meger, briefed lower level joint representatives from the Army and the Marine Corps about the risks identified by the group at Davis-Monthan. Included in the briefing was the prediction that divestment of the A-10 would result in “significant capability and capacity gaps for the next ten to twelve years” that would require maintaining legacy aircraft until the F-35A was fully operational. After the presentation, an Army civilian representative became concerned. The slides, he told Col. Meger, suggested that the operational dangers of divestment of the A-10 were much greater than had been previously portrayed by the Air Force. Col. Meger attempted to reassure the civilian that the mitigation plan would eliminate the risks. Following the briefing, Col. Meger met with Lt. Gen. Tod D. Wolters, the Deputy Chief of Staff for Operations for Air Force Headquarters. Notably, the Summit Slide presentation for general officers the next day stripped away any mention of A-10 divestment creating significant capability gaps. Any mention of the need to maintain legacy aircraft, including the A-10, until the F-35A reached full operating capability (FOC) was also removed from the presentation.
  • The next day, Col. Meger delivered the new, sanitized presentation to the Air Force Chief of Staff. There was only muted mention of the risks presented by divestment. There was no mention of the 10- to 12-year estimated capability gap, nor was there any mention whatsoever of the need to maintain legacy aircraft—such as the A-10 or less capable alternatives like the F-16 or F-15E—until the F-35A reached FOC. Other important areas of concern to working group members, but impossible to adequately address within the three days at Davis-Monthan, were the additional costs to convert squadrons from the A-10 to another platform, inevitable training shortfalls that would be created, and how the deployment tempos of ongoing operations would further exacerbate near-term gaps in CAS capability. To our knowledge, none of these concerns surfaced during any part of the Pentagon summit.
  • Inevitably, the Air Force generals leading the ongoing CAS Summit media blitz will point congressional Armed Services and Appropriations committees to the whitewashed results of their sham summit. When they do, Senators and Representatives who care about the lives of American troops in combat need to ask the generals the following questions: Why wasn’t this summit held before the Air Force decided to get rid of A-10s? Why doesn’t the Air Force’s joint CAS summit include any statement of needs from soldiers or Marines who have actually required close air support in combat? What is the Air Force’s contingency plan for minimizing casualties among our troops in combat in the years after 2019, if the F-35 is several years late in achieving its full CAS capabilities? When and how does the Air Force propose to test whether the F-35 can deliver close support at least as combat-effective as the A-10’s present capability? How can that test take place without A-10s? Congress cannot and should not endorse Air Force leadership’s Summit by divesting the A-10s. Instead, the Senate and House Armed Services Committees need to hold hearings that consider the real and looming problems of inadequate close support, the very problems that Air Force headquarters prevented their Summit from addressing. These hearings need to include a close analysis of CAPE’s assessment and whether the decision to classify its report was necessary and appropriate. Most importantly, those hearings must include combat-experienced receivers and providers of close support who have seen the best and worst of that support, not witnesses cherry-picked by Air Force leadership—and the witnesses invited must be free to tell it the way they saw it.
  • If Congress is persuaded by the significant CAS capability risks and gaps originally identified by the Summit’s working groups, they should write and enforce legislation to constrain the Air Force from further eroding the nation’s close air support forces. Finally, if Congress believes that officers have purposely misled them about the true nature of these risks, or attempted to constrain service members’ communications with Congress about those risks, they should hold the officers accountable and remove them from positions of leadership. Congress owes nothing less to the troops they send to fight our wars.
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     Though not touched on in the article, the real problem is that the A10 has no proponents at the higher ranks of the Air Force because it is already bought and paid for; there's nothing in the A10 for the big Air Force aircraft manufacturing defense contractors. The F35, on the other hand is, is a defense contractor wet dream. It's all pie in the sky and big contracts just to get the first one in the air, let alone outfit it with the gear and programming needed to use it to inflict harm. It's been one cost-overrun after another and delay after delay. It's a national disgrace that has grown to become the most expensive military purchase in history. And it will never match the A10 for the close air support role. It's minimum airspeed is too high and its close-in maneuverability will be horrible. The generals, of course, don't want to poison the well for their post-military careers working for the defense contractors by putting a halt to the boondobble. Their answer: eliminate the close air support mission for at least 10-12 years and then attempt it with the F35.   As a former ground troop, that's grounds for the Air Force generals' court-martial and dishonorable discharge. I would not be alive today were it not for close air support. And there are tens of thousands of veterans who can say that in all truth. The A10 wasn't available back in my day, but by all reports its the best close air support weapons platform ever developed. It's a tank killer and is heavily armored, with redundant systems for pilot and aircraft survivability. The A10 is literally built around a 30 mm rotary cannon that fires at 3,900 rounds per minute. It also carries air to ground rockets and is the only close air support aircraft still in the U.S. arsenal. Fortunately, John McCain "get it" on the close air support mission and has managed to mostly protect the A10 from the generals. If you want to learn  more about the F35 scandal, try this Wikipedia article section; although it's enoug
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Investigation Finds World's Largest Coal Company Misled Public On Climate Change | Thin... - 0 views

  • The world’s largest private coal company misled its investors and the public about the financial risks of climate change, New York state’s attorney general announced on Monday. In a press release, Attorney General Eric Schneiderman said Peabody Energy violated New York laws prohibiting “false and misleading conduct” in public statements about its business. Specifically, Schneiderman found that Peabody failed to tell its investors about how regulations to fight climate change could hurt the coal industry. Instead, Peabody insisted it had no idea how climate regulations would affect its business, and provided its investors with “incomplete and one-sided discussions” of the future of coal in a climate-concerned world, Schneiderman said.
  • “As a publicly traded company whose core business generates massive amounts of carbon emissions, Peabody Energy has a responsibility to be honest with its investors and the public about the risks posed by climate change, now and in the future,” Schneiderman said in a statement. “I believe that full and fair disclosures by Peabody and other fossil fuel companies will lead investors to think long and hard about the damage these companies are doing to our planet.” The state laws Peabody was found to have violated are the Martin Act and Executive Law, both of which “prohibit false and misleading conduct in connection with securities transactions,” the attorney general said. Peabody did not admit or deny those findings, but signed a document on Sunday agreeing to revise its shareholder disclosures with the Securities and Exchange Commission. Per that document, Peabody will have to correct its financial statements to be honest about how a global climate deal or other carbon regulation could hurt its business. The document can be found in full here.
  • Peabody’s violations will not result in financial punishment, as both laws only allow monetary penalties if shareholders need to be reimbursed for financial losses. It’s difficult to know what, if any, financial harm was passed on to shareholders due to Peabody’s misleading statements, since this particular situation was about the future risks of climate change. If in the future, however, investors find that Peabody’s misleading statements cost them money, they would likely have the option to sue. The settlement comes just a few days after the two-year investigation became public. On Friday, Scheiderman announced that his office had issued subpoenas to both Peabody and oil company ExxonMobil, both related to the fossil fuel giants’ public statements on climate change.
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  • Environmentalists and Democratic politicians have accused ExxonMobil of engaging in a cover-up to mislead the public about the risks of human-caused climate change in order to sell more of its carbon-intensive product. Exxon has vehemently denied the accusation. Either way, Schneiderman’s two investigations are sparking serious legal discussion about how honest fossil fuel companies must be when it comes to the carbon emissions they create — especially if honesty might mean knowingly lowering profits. Should coal companies be forced to admit that their coal is creating a climate risk? If so, should they be allowed to fund politicians who advocate against climate action? Are these corporate activities protected free speech? Bloomberg View columnist Matt Levine offered a nuanced discussion of those questions on Friday. And ultimately, he said, it may just come down to whether these companies lied to their own investors — even if the lie was in their investors’ financial interest. “If you lie to the public about the risks that fossil fuel use poses to life on earth, you are just exercising your right as a citizen,” Levine wrote. “But if you lie to your investors about the risks that fossil fuel regulation poses to your stock price, you are committing fraud and will get in bad trouble.”
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    "If you lie to the public about the risks that fossil fuel use poses to life on earth, you are just exercising your right as a citizen," Levine wrote. Correction. Corporations are not citizens; only human beings can achieve that status.  
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