President Obama’s Kansas speech is a remarkable document. In calling for more government controls, more taxation, more collectivism, he has two paragraphs that give the show away. Take a look at them.
there is a certain crowd in Washington who, for the last few decades, have said, let’s respond to this economic challenge with the same old tune. “The market will take care of everything,” they tell us. If we just cut more regulations and cut more taxes–especially for the wealthy–our economy will grow stronger. Sure, they say, there will be winners and losers. But if the winners do really well, then jobs and prosperity will eventually trickle down to everybody else. And, they argue, even if prosperity doesn’t trickle down, well, that’s the price of liberty.
Now, it’s a simple theory. And we have to admit, it’s one that speaks to our rugged individualism and our healthy skepticism of too much government. That’s in America’s DNA. And that theory fits well on a bumper sticker. (Laughter.) But here’s the problem: It doesn’t work. It has never worked. (Applause.) It didn’t work when it was tried in the decade before the Great Depression. It’s not what led to the incredible postwar booms of the ’50s and ’60s. And it didn’t work when we tried it during the last decade. (Applause.) I mean, understand, it’s not as if we haven’t tried this theory.
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Obama To Americans: You Don't Deserve To Be Free - Forbes - 1 views
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Though not in Washington, I’m in that “certain crowd” that has been saying for decades that the market will take care of everything. It’s not really a crowd, it’s a tiny group of radicals–radicals for capitalism, in Ayn Rand’s well-turned phrase. The only thing that the market doesn’t take care of is anti-market acts: acts that initiate physical force. That’s why we need government: to wield retaliatory force to defend individual rights. Radicals for capitalism would, as the Declaration of Independence says, use government only “to secure these rights”–the rights to life, liberty, property, and the pursuit of happiness. (Yes, I added “property” in there–property rights are inseparable from the other three.) That’s the political philosophy on which Obama is trying to hang the blame for the recent financial crisis and every other social ill. But ask yourself, are we few radical capitalists in charge? Have radical capitalists been in charge at any time in the last, oh, say 100 years?
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I pick 100 years deliberately, because it was exactly 100 years ago that a gigantic anti-capitalist measure was put into effect: the Federal Reserve System. For 100 years, government, not the free market, has controlled money and banking. How’s that worked out? How’s the value of the dollar held up since 1913? Is it worth one-fiftieth of its value then or only one-one-hundredth? You be the judge. How did the dollar hold up over the 100 years before this government take-over of money and banking? It actually gained slightly in value.
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Laissez-faire hasn’t existed since the Sherman Antitrust Act of 1890. That was the first of a plethora of government crimes against the free market.
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The typical Republican would never, ever say “the market will take care of everything.” He’d say, “the market will take care of most things, and for the other things, we need the regulatory-welfare state.” They are for individualism–except when they are against it. They are against free markets and individualism not only when they agree with the Left that we must have antitrust laws and the Federal Reserve, but also when they demand immigration controls, government schools, regulatory agencies, Medicare, laws prohibiting abortion, Social Security, “public works” projects, the “social safety net,” laws against insider trading, banking regulation, and the whole system of fiat money.
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Even you, dear reader, are probably wondering how on earth anyone could challenge things like Social Security, government schools, and the FDA. But that’s not the point. The point is: these statist, anti-capitalist programs exist and have existed for about a century. The point is: Obama is pretending that the Progressive PGR -2.02% Era, the New Deal, and the Great Society were repealed, so that he can blame the financial crisis on capitalism. He’s pretending that George Bush was George Washington.
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What Obama is indeed responsible for is the injustice of robbing some to (allegedly) benefit others. To the extent that cronyism, not the free market, sets income, that is an injustice to be laid at the statists’ door.
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There is no such problem as “unemployment” under capitalism. Prices fall to clear the market. Twice the work force could be employed if average wages dropped in half. But that’s nominal wages; with a constant money supply, prices would also fall in half–or slightly more than that. This isn’t just theory. America’s workforce has grown steadily decade after decade, yet the standard of living has risen at the same time. I grant you that the rise has slowed as statist intervention has grown. Think of the phenomenal progress between, say 1900 and 1920 as compared to the minor progress from 1993 to 2013. Most of the progress in the last 20 years has come in the freest area of the economy: electronics and computing.
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Harry Binswanger defends laissez-faire capitalism, using Ayn Rand Objectivism. -
The major problem with Ayn Rand Objectivism is that it's an "ism." The Utopian ideal it is based on has never existed in reality and likely never will; its principles have never been tested. Moreover, I will argue that Binswanger is incorrect in arguing that the anti-capitalist phenomenon in America began with creation of the Federal Reserve; it dates much farther back. The economic basis for the Revolutionary War was largely the Crown-granted monopolies granted to the first great British "companies" (corporations), which had the effect of forcing North American colonists to pay monopoly rents for common goods and kept American ship owners from importing those goods from elsewhere to sell at a lower price. The Founding Fathers were strongly against privately-owned corporations and government-granted monopolies, with only two exceptions, copyrights for literary works and patents for inventions. The Constitution's prohibition against government-granted monopolies is implicit in its allowance for only two narrowly-defined types. The Founding Fathers' writings explicitly discussed the difference between "natural" monopolies and those created by government or anti-competitive conduct. During the early years of the nation corporations were permitted by the States, but only for public purposes, usually for public works such as bridges or roads for which there was a need to amass capital. These early American corporations were usually chartered only for the time required to complete the public work and to recover the invesment and a small profit, e.g., from tolls for using a bridge or road. Many of the early state constitutions explicitly limited the lifetime of corporations. However, such early opposition to corporations gradually eroded; corporate purposes were expanded, corporations were granted perpetual life, and the corporate form of doing business became much more widespread. Here, it is important to recognize that corporations are market artificialities c
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Senate goes for 'nuclear option' - Burgess Everett and Seung Min Kim - POLITICO.com - 0 views
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The Senate approved a historic rules change on Thursday by eliminating the use of the filibuster on all presidential nominees except those to the U.S. Supreme Court.Invoking the long-threatened “nuclear option” means that most of President Barack Obama’s judicial and executive branch nominees no longer need to clear a 60-vote threshold to reach the Senate floor and get an up-or-down vote.
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Senate Majority Leader Harry Reid (D-Nev.) used the nuclear option Thursday morning, meaning he called for a vote to change the Senate rules by a simple majority vote. It passed, 52 to 48. Three Democrats voted against changing the rules — Sen. Carl Levin of Michigan, Joe Manchin of West Virginia and Mark Pryor of Arkansas. “It’s time to change the Senate before this institution becomes obsolete,” Reid said in a lengthy floor speech on Thursday morning. A furious Senate Minority Leader Mitch McConnell (R-Ky.), who tried to recess the Senate for the day before the rules change could get a vote, said after the minority’s power was limited by Democrats: “I don’t think this is a time to be talking about reprisal. I think it’s a time to be sad about what has been done to the United States Senate.”
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The debate over the filibuster — and specifically its use on D.C. Circuit nominees — has been raging for nearly a decade, stretching back to when George W. Bush was president and Democrats were in the minority. But changing the Senate rules has always been avoided through a piecemeal deal, a gentleman’s agreement or a specific solution, not a historic change to the very fabric of the Senate.
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But since Obama’s nomination, the “nuclear option” has reared its head three times in less than a year — each time getting closer to the edge. Many in the Senate privately expected that this go-round would be yet another example of saber rattling, but Reid said pressure was increasing within his own party to change the rules. The blockade of three consecutive nominees to a powerful appellate court was too much for Democrats to handle — and Reid felt compelled to pull the trigger, explaining that “this is the way it has to be.”
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Senate Democrats were quick to use their newfound powers, voting in the early afternoon to end the filibuster on Patricia Millett’s nomination to the D.C. Circuit Court of Appeals. The vote was 55-43, with two senators voting present. Before the change earlier Thursday, Millett would have needed 60 votes to clear the procedural hurdle and move on to a confirmation vote. But now, she needed just 51 to advance.
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The Senate's filibuster rule, particularly since abandonment of the requirement that the filibustering Senator must keep talking so long as the filibuster continues, has seemed more and more an anachronism to me as I age. Its use to indefinitely block an up or down vote on a legislative measure -- in essence granting each Senator veto power over proposed measures seems fundamentally at odds with democratic principles to me. Certainly during my lifetime, the filibuster rule has been abused by both major parties, transforming a mere rule of procedure into an individual veto power nowhere set forth in the Constitution, in effect requiring a 60 per cent super-majority to pass a controversial measure. The Constitution is not silent on the subject of super-majorities in the Senate, specifying a super-majority to override a presidential veto and to remove a federal official from office by impeachment. Therefore, one might argue that the Founders knew how to write a super-majority requirement but did not see fit to require a supermajority to close debate and bring a measure to a vote. In other words, I favor abolishing the filibuster rule entirely and making "the nuclear option" standard procedure except where the Constitution establishes a super-majority requirement. To me it is not important that this limitation of the filibuster rule occurred when the Democrats had the majority in the Senate; whenever it were to happen, some party would be in the minority. And I do not believe that the People of this nation will be disadvantaged by up or down votes on Senate measures. Now can we please get rid of the filibuster rule entirely?
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Can The ObamaCare Enrollment Numbers Be Believed? - Investors.com - 0 views
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When the Obama administration announced on April 1 that an estimated 7.1 million had signed up for ObamaCare by the end of March, it seemed a nearly impossible achievement. In every month before, sign-ups lagged behind the administration's original forecast by wide margins and had fallen 1.4 million behind by the end of February. In mid-March, the AP said that it would take "close to a miracle" just to reach 6 million. And a Rand survey out this week puts enrollment by early March at less than 4 million. To reach 7.1 million, sign-ups had to rocket up by 67% in just one month. That's astounding enough, but an IBD review of existing ObamaCare enrollment data shows that the mathematical challenge of reaching 7.1 million sign-ups was even tougher.
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Turkey Cooks the Books in Syria | The American Conservative - 0 views
www.theamericanconservative.com/...urkey-cooks-the-books-in-syria
war & peace Syria Turkey U.S.-foreign-policy false-flag
shared by Paul Merrell on 25 Apr 14
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If you had been a reader of The American Conservative magazine back in December 2011, you might have learned from an article written by me that “Unmarked NATO warplanes are arriving at Turkish military bases close to Iskenderum on the Syrian border, delivering weapons [to the Free Syrian Army] derived from Colonel Muammar Gaddafi’s arsenals…” Well, it seems that the rest of the media is beginning to catch up with the old news, supplemented with significant details by Sy Hersh in the latest issue of the London Review of Books in an article entitled “The Red Line and the Rat Line.” The reality is that numerous former intelligence officials, like myself, have long known most of the story surrounding the on-again off-again intervention by the United States and others in Syria, but what was needed was a Sy Hersh, with his unmatched range of contacts deep in both the Pentagon as well as at CIA and State Department, to stitch it all together with corroboration from multiple sources. In a sense it was a secret that wasn’t really very well hidden but which the mainstream media wouldn’t touch with a barge pole because it revealed that the Obama Administration, just like the Bushies who preceded it, has been actively though clandestinely conspiring to overthrow yet another government in the Middle East. One might well conclude that the White House is like the Bourbon Kings of France in that it never forgets anything but never learns anything either.
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The few media outlets that are willing to pick up the Syria story even now are gingerly treating it as something new, jumping in based on their own editorial biases, sometimes emphasizing the CIA and MI6 role in cooperating with the Turks to undermine Bashar al-Assad. But Hersh’s tale is only surprising if one had not been reading between the lines over the past three years, where the clandestine role of the British and American governments was evident and frequently reported on over the internet and, most particularly, in the local media in the Middle East. Far from being either rogue or deliberately deceptive, operations by the U.S. and UK intelligence services, the so-called “ratlines” feeding weapons into Syria, were fully vetted and approved by both the White House and Number 10 Downing Street. The more recent exposure of the Benghazi CIA base’s possible involvement in obtaining Libyan arms as part of the process of equipping the Syrian insurgents almost blew the lid off of the arrangement but somehow the media attention was diverted by a partisan attack on the Obama Administration over who said what and when to explain the security breakdown and the real story sank out of sight.
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So this is what happened, roughly speaking: the United States had been seeking the ouster of President Bashar al-Assad of Syria since at least 2003, joining with Saudi Arabia, which had been funding efforts to destabilize his regime even earlier. Why? Because from the Saudi viewpoint Syria was an ally of Iran and was also a heretical state led by a secular government dominated by Alawite Muslims, viewed as being uncomfortably close to Shi’ites in their apostasy. From the U.S. viewpoint, the ties to Iran and reports of Syrian interference in Lebanon were a sufficient casus belli coupled with a geostrategic assessment shared with the Saudis that Syria served as the essential land bridge connecting Hezbollah in Lebanon to Iran. The subsequent Congressional Syria Accountability Acts of 2004 and 2010, like similar legislation directed against Iran, have resulted in little accountability and have instead stifled diplomacy. They punished Syria with sanctions for supporting Hezbollah in Lebanon and for its links to Tehran, making any possible improvement in relations problematical. The 2010 Act even calls for steps to bring about regime change in Damascus. The United States also engaged in a program eerily reminiscent of its recent moves to destabilize the government in Ukraine, i.e., sending in ambassadors and charges who deliberately provoked the Syrian government by meeting with opposition leaders and openly making demands for greater democracy. The last U.S. Ambassador to Syria Robert Ford spoke openly in support of the protesters while serving in Damascus in 2010. On one occasion he was pelted with tomatoes and was eventually removed over safety concerns.
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Lost in translation is the fact that Washington’s growing support for radical insurgency in Syria would also inevitably destabilize all its neighbors, most notably including Iraq, which has indeed been the case, making a shambles of U.S. claims that it was seeking to introduce stable democracies into the region. Some also saw irony in the fact that a few years before Washington decided al-Assad was an enemy it had been sending victims of the CIA’s rendition program to Syria, suggesting that at least some short-term and long-term strategies were on a collision course from the start, if indeed the advocates of the two policies were actually communicating with each other at all. Prime Minister Recep Tayyip Erdogan of Turkey, whose country shared a long border with Syria and who had legitimate security concerns relating to Kurdish separatists operating out of the border region, became the proxy in the secret war for Washington and its principal European allies, the British and French. When the U.S.-Saudi supported insurgency began to heat up and turn violent, Turkey became the key front line state in pushing for aggressive action against Damascus. Erdogan miscalculated, thinking that al-Assad was on his last legs, needing only a push to force him out, and Ankara saw itself as ultimately benefiting from a weak Syria with a Turkish-controlled buffer zone along the border to keep the Kurds in check.
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Hersh reports how President Barack Obama had to back down from attacking Syria when the Anglo-American intelligence community informed him flatly and unambiguously that Damascus was not responsible for the poison gas attack that took place in Damascus on August 21, 2013 that was being exploited as a casus belli. The information supporting that assertion was known to many like myself who move around the fringes of the intelligence community, but the real revelation from Hersh is the depth of Turkish involvement in the incident in order to have the atrocity be exploitable as a pretext for American armed intervention, which, at that point, Erdogan strongly desired. As the use of weapons of mass destruction against civilians was one of the red lines that Obama had foolishly promoted regarding Syria Erdogan was eager to deliver just that to force the U.S.’s hand. Relying on unidentified senior U.S. intelligence sources, Hersh demonstrates how Turkey’s own preferred militant group Jabhat al-Nusra, which is generally regarded as an al-Qaeda affiliate, apparently used Turkish-provided chemicals and instructions to stage the attack.
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Is it all true? Unless one has access to the same raw information as Sy Hersh it is difficult to say with any certainty, but I believe I know who some of the sources are and they both have good access to intelligence and are reliable. Plus, the whole narrative has an undeniable plausibility, particularly if one also considers other evidence of Erdogan’s willingness to take large risks coupled with a more general Turkish underhandedness relating to Syria. On March 23rd, one week before local elections in Turkey that Erdogan feared would go badly for him, a Turkish air force F-16 shot down a Syrian Mig-23, claiming that it had strayed half a mile into Turkish airspace. The pilot who bailed out, claimed that he was attacking insurgent targets at least four miles inside the border when he was shot down, an assertion borne out by physical evidence as the plane’s remains landed inside Syria. Was Erdogan demonstrating how tough he could be just before elections? Possibly.
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Critics of Hersh claim that the Turks would be incapable of carrying out such a grand subterfuge, but I would argue that putting together some technicians, chemicals, and a couple of trucks to carry the load are well within the capability of MIT, an organization that I have worked with and whose abilities I respect. And one must regard with dismay the “tangled webs we weave,” with due credit to Bobby Burns, for what has subsequently evolved in Syria. Allies like Turkey that are willing to cook the books to bring about military action are exploiting the uncertainty of a White House that continues to search for foreign policy successes while simultaneously being unable to define any genuine American interests. Syria is far from an innocent in the ensuing mayhem, but it has become the fall guy for a whole series of failed policies. Turkey meanwhile has exploited the confusion to clamp down on dissent and to institutionalize Erdogan’s authoritarian inclinations. Ten years of American-licensed meddling combined with obliviousness to possible consequences has led to in excess of 100,000 dead Syrians and the introduction of large terrorist infrastructures into the Arab heartland, yet another foreign policy disaster in the making with no clear way out.
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Former CIA officer Philip Giraldi adds valuable context to revelations of Turkey's involvement in the false flag Sarin gas attack in Syria and in Turkey's follow-up plan to stage a false flag attack on a Turkish tomb in Syria as a pretext for Turkish invasion of Syria.
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Did Obama Know that ISIS Planned to Invade Iraq? » CounterPunch: Tells the Fa... - 0 views
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Today’s head-scratcher: How could a two-mile long column of jihadi-filled white Toyota Land rovers barrel across the Syrian border into Iraq–sending plumes of dust up into the atmosphere –without US spy satellites detecting their whereabouts when those same satellites can read a damn license plate from outer space? And why has the media failed to inquire about this massive Intelligence failure?
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By the way, according to the Telegraph, Obama and friends knew what ISIS was up to, and knew that the terrorist group was going to launch attacks on cities in the Sunni territories, just as they have. Get a load of this: “Five months ago, a Kurdish intelligence “asset” walked into a base and said he had information to hand over. The capture by jihadists the month before of two Sunni cities in western Iraq was just the beginning, he said. There would soon be a major onslaught on Sunni territories. The Islamic State of Iraq and al-Sham (Isis), a renegade offshoot of al-Qaeda, was about to take its well-known cooperation with leftovers of the regime of Saddam Hussein, and his former deputy Izzat al-Douri, to a new level.
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His handlers knew their source of old, and he had always proved reliable, officials told The Telegraph. So they listened carefully as he said a formal alliance was about to be signed that would lead to the takeover of Mosul, the biggest city north of Baghdad, home to two million people. … ‘We had this information then, and we passed it on to your (British) government and the US government,’ Rooz Bahjat, a senior lieutenant to Lahur Talabani, head of Kurdish intelligence, said. ‘We used our official liaisons.’ ‘We knew exactly what strategy they were going to use, we knew the military planners. It fell on deaf ears.’ (How US and Britain were warned of Isis advance in Iraq but ‘turned a deaf ear, Telegraph)
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“Deaf ears”? I’m not buying it. I think the intelligence went straight to the top, where Obama and his neocon colleagues came up with the plan that is unfolding as we speak. They figured, if they just look the other way and let these homicidal madhatters seize a few cities and raise a little Hell, they’d be able to kill two birds with one stone, that is, get rid of al Mailiki and partition the country at the same time. But, it’s not going to work out like Obama expects, mainly because this is just about the dumbest plan ever conjured up. I would give it an 80 percent chance blowing up in Obama’s face in less than a month’s time. This turkey has failure written all over it.
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Seems that those in the White House can't see the connections between the dots even when someone draws those connections for them. Or, as this author suggests, they were happy about the way the dots were connected.
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The obscure legal system that lets corporations sue countries | Claire Provost and Matt... - 0 views
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Every year on 15 September, thousands of Salvadorans celebrate the date when much of Central America gained independence from Spain. Fireworks are set off and marching bands parade through villages across the country. But, last year, in the town of San Isidro, in Cabañas, the festivities had a markedly different tone. Hundreds had gathered to protest against the mine. Gold mines often use cyanide to separate gold from ore, and widespread concern over already severe water contamination in El Salvador has helped fuel a powerful movement determined to keep the country’s minerals in the ground. In the central square, colourful banners were strung up, calling on OceanaGold to drop its case against the country and leave the area. Many were adorned with the slogan, “No a la mineria, Si a la vida” (No to mining, Yes to life). On the same day, in Washington DC, Parada gathered his notes and shuffled into a suite of nondescript meeting rooms in the World Bank’s J building, across the street from its main headquarters on Pennsylvania Avenue. This is the International Centre for the Settlement of Investment Disputes (ICSID): the primary institution for handling the cases that companies file against sovereign states. (The ICSID is not the sole venue for such cases; there are similar forums in London, Paris, Hong Kong and the Hague, among others.) The date of the hearing was not a coincidence, Parada said. The case has been framed in El Salvador as a test of the country’s sovereignty in the 21st century, and he suggested that it should be heard on Independence Day. “The ultimate question in this case,” he said, “is whether a foreign investor can force a government to change its laws to please the investor as opposed to the investor complying with the laws they find in the country.”
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Most international investment treaties and free-trade deals grant foreign investors the right to activate this system, known as investor-state dispute settlement (ISDS), if they want to challenge government decisions affecting their investments. In Europe, this system has become a sticking point in negotiations over the controversial Transatlantic Trade and Investment Partnership (TTIP) deal proposed between the European Union and the US, which would massively extend its scope and power and make it harder to challenge in the future. Both France and Germany have said that they want access to investor-state dispute settlement removed from the TTIP treaty currently under discussion. Investors have used this system not only to sue for compensation for alleged expropriation of land and factories, but also over a huge range of government measures, including environmental and social regulations, which they say infringe on their rights. Multinationals have sued to recover money they have already invested, but also for alleged lost profits and “expected future profits”. The number of suits filed against countries at the ICSID is now around 500 – and that figure is growing at an average rate of one case a week. The sums awarded in damages are so vast that investment funds have taken notice: corporations’ claims against states are now seen as assets that can be invested in or used as leverage to secure multimillion-dollar loans. Increasingly, companies are using the threat of a lawsuit at the ICSID to exert pressure on governments not to challenge investors’ actions.
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“I had absolutely no idea this was coming,” Parada said. Sitting in a glass-walled meeting room in his offices, at the law firm Foley Hoag, he paused, searching for the right word to describe what has happened in his field. “Rogue,” he decided, finally. “I think the investor-state arbitration system was created with good intentions, but in practice it has gone completely rogue.”
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The quiet village of Moorburg in Germany lies just across the river from Hamburg. Past the 16th-century church and meadows rich with wildflowers, two huge chimneys spew a steady stream of thick, grey smoke into the sky. This is Kraftwerk Moorburg, a new coal-fired power plant – the village’s controversial next-door neighbour. In 2009, it was the subject of a €1.4bn investor-state case filed by Vattenfall, the Swedish energy giant, against the Federal Republic of Germany. It is a prime example of how this powerful international legal system, built to protect foreign investors in developing countries, is now being used to challenge the actions of European governments as well. Since the 1980s, German investors have sued dozens of countries, including Ghana, Ukraine and the Philippines, at the World Bank’s Centre in Washington DC. But with the Vattenfall case, Germany found itself in the dock for the first time. The irony was not lost on those who considered Germany to be the grandfather of investor-state arbitration: it was a group of German businessmen, in the late 1950s, who first conceived of a way to protect their overseas investments as a wave of developing countries gained independence from European colonial powers. Led by Deutsche Bank chairman Hermann Abs, they called their proposal an “international magna carta” for private investors.
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In the 1960s, the idea was taken up by the World Bank, which said that such a system could help the world’s poorer countries attract foreign capital. “I am convinced,” the World Bank president George Woods said at the time, “that those … who adopt as their national policy a welcome [environment] for international investment – and that means, to mince no words about it, giving foreign investors a fair opportunity to make attractive profits – will achieve their development objectives more rapidly than those who do not.” At the World Bank’s 1964 annual meeting in Tokyo, it approved a resolution to set up a mechanism for handling investor-state cases. The first line of the ICSID Convention’s preamble sets out its goal as “international cooperation for economic development”. There was sharp opposition to this system from its inception, with a bloc of developing countries warning that it would undermine their sovereignty. A group of 21 countries – almost every Latin American country, plus Iraq and the Philippines – voted against the proposal in Tokyo. But the World Bank moved ahead regardless. Andreas Lowenfeld, an American legal academic who was involved in some of these early discussions, later remarked: “I believe this was the first time that a major resolution of the World Bank had been pressed forward with so much opposition.”
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now governments are discovering, too late, the true price of that confidence. The Kraftwerk Moorburg plant was controversial long before the case was filed. For years, local residents and environmental groups objected to its construction, amid growing concern over climate change and the impact the project would have on the Elbe river. In 2008, Vattenfall was granted a water permit for its Moorburg project, but, in response to local pressure, local authorities imposed strict environmental conditions to limit the utility’s water usage and its impact on fish. Vattenfall sued Hamburg in the local courts. But, as a foreign investor, it was also able to file a case at the ICSID. These environmental measures, it said, were so strict that they constituted a violation of its rights as guaranteed by the Energy Charter Treaty, a multilateral investment agreement signed by more than 50 countries, including Sweden and Germany. It claimed that the environmental conditions placed on its permit were so severe that they made the plant uneconomical and constituted acts of indirect expropriation.
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With the rapid growth in these treaties – today there are more than 3,000 in force – a specialist industry has developed in advising companies how best to exploit treaties that give investors access to the dispute resolution system, and how to structure their businesses to benefit from the different protections on offer. It is a lucrative sector: legal fees alone average $8m per case, but they have exceeded $30m in some disputes; arbitrators’ fees at start at $3,000 per day, plus expenses.
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Vattenfall v Germany ended in a settlement in 2011, after the company won its case in the local court and received a new water permit for its Moorburg plant – which significantly lowered the environmental standards that had originally been imposed, according to legal experts, allowing the plant to use more water from the river and weakening measures to protect fish. The European Commission has now stepped in, taking Germany to the EU Court of Justice, saying its authorisation of the Moorburg coal plant violated EU environmental law by not doing more to reduce the risk to protected fish species, including salmon, which pass near the plant while migrating from the North Sea. A year after the Moorburg case closed, Vattenfall filed another claim against Germany, this time over the federal government’s decision to phase out nuclear power. This second suit – for which very little information is available in the public domain, despite reports that the company is seeking €4.7bn from German taxpayers – is still ongoing. Roughly one third of all concluded cases filed at the ICSID are recorded as ending in “settlements”, which – as the Moorburg dispute shows – can be very profitable for investors, though their terms are rarely fully disclosed.
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“It was a total surprise for us,” the local Green party leader Jens Kerstan laughed, in a meeting at his sunny office in Hamburg last year. “As far as I knew, there were some [treaties] to protect German companies in the [developing] world or in dictatorships, but that a European company can sue Germany, that was totally a surprise to me.”
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While a tribunal cannot force a country to change its laws, or give a company a permit, the risk of massive damages may in some cases be enough to persuade a government to reconsider its actions. The possibility of arbitration proceedings can be used to encourage states to enter into meaningful settlement negotiations.
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A small number of countries are now attempting to extricate themselves from the bonds of the investor-state dispute system. One of these is Bolivia, where thousands of people took to the streets of the country’s third-largest city, Cochabamba, in 2000, to protest against a dramatic hike in water rates by a private company owned by Bechtel, the US civil engineering firm. During the demonstrations, the Bolivian government stepped in and terminated the company’s concession. The company then filed a $50m suit against Bolivia at the ICSID. In 2006, following a campaign calling for the case to be thrown out, the company agreed to accept a token payment of less than $1. After this expensive case, Bolivia cancelled the international agreements it had signed with other states giving their investors access to these tribunals. But getting out of this system is not easily done. Most of these international agreements have sunset clauses, under which their provisions remain in force for a further 10 or even 20 years, even if the treaties themselves are cancelled.
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There are now thousands of international investment agreements and free-trade acts, signed by states, which give foreign companies access to the investor-state dispute system, if they decide to challenge government decisions. Disputes are typically heard by panels of three arbitrators; one selected by each side, and the third agreed upon by both parties. Rulings are made by majority vote, and decisions are final and binding. There is no appeals process – only an annulment option that can be used on very limited grounds. If states do not pay up after the decision, their assets are subject to seizure in almost every country in the world (the company can apply to local courts for an enforcement order).
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While there is no equivalent of legal aid for states trying to defend themselves against these suits, corporations have access to a growing group of third-party financiers who are willing to fund their cases against states, usually in exchange for a cut of any eventual award.
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Increasingly, these suits are becoming valuable even before claims are settled. After Rurelec filed suit against Bolivia, it took its case to the market and secured a multimillion-dollar corporate loan, using its dispute with Bolivia as collateral, so that it could expand its business. Over the last 10 years, and particularly since the global financial crisis, a growing number of specialised investment funds have moved to raise money through these cases, treating companies’ multimillion-dollar claims against states as a new “asset class”.
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El Salvador has already spent more than $12m defending itself against Pacific Rim, but even if it succeeds in beating the company’s $284m claim, it may never recover these costs. For years Salvadoran protest groups have been calling on the World Bank to initiate an open and public review of ICSID. To date, no such study has been carried out. In recent years, a number of ideas have been mooted to reform the international investor-state dispute system – to adopt a “loser pays” approach to costs, for example, or to increase transparency. The solution may lie in creating an appeals system, so that controversial judgments can be revisited.
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Brazil has never signed up to this system – it has not entered into a single treaty with these investor-state dispute provisions – and yet it has had no trouble attracting foreign investment.
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"Luis Parada's office is just four blocks from the White House, in the heart of K Street, Washington's lobbying row - a stretch of steel and glass buildings once dubbed the "road to riches", when influence-peddling became an American growth industry. Parada, a soft-spoken 55-year-old from El Salvador, is one of a handful of lawyers in the world who specialise in defending sovereign states against lawsuits lodged by multinational corporations. He is the lawyer for the defence in an obscure but increasingly powerful field of international law - where foreign investors can sue governments in a network of tribunals for billions of dollars. Fifteen years ago, Parada's work was a minor niche even within the legal business. But since 2000, hundreds of foreign investors have sued more than half of the world's countries, claiming damages for a wide range of government actions that they say have threatened their profits. In 2006, Ecuador cancelled an oil-exploration contract with Houston-based Occidental Petroleum; in 2012, after Occidental filed a suit before an international investment tribunal, Ecuador was ordered to pay a record $1.8bn - roughly equal to the country's health budget for a year. (Ecuador has logged a request for the decision to be annulled.) Parada's first case was defending Argentina in the late 1990s against the French conglomerate Vivendi, which sued after the Argentine province of Tucuman stepped in to limit the price it charged people for water and wastewater services. Argentina eventually lost, and was ordered to pay the company more than $100m. Now, in his most high-profile case yet, Parada is part of the team defending El Salvador as it tries to fend off a multimillion-dollar suit lodged by a multinational mining company after the tiny Central American country refused to allow it to dig for gold."
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shared by Paul Merrell on 31 Oct 13
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Lavabit To Release Code As Open Source, As It Creates Dark Mail Alliance To Create Even... - 0 views
www.techdirt.com/...surveillance-proof-email.shtml
surveillance state NSA Dark Mail Alliance NSA-blowback
shared by Paul Merrell on 31 Oct 13
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This whole morning, while all these stories of the NSA hacking directly into Google and Yahoo's network have been popping up, I've been at the Inbox Love conference, all about the future of email. The "keynote" that just concluded, was Ladar Levison from Lavabit (with an assist from Mike Janke from Silent Circle), talking about the just announced Dark Mail Alliance, between Lavabit and Silent Circle -- the other "security" focused communications company who shut down its email offering after Lavabit was forced to shut down. Levison joked that they went with "Dark Mail" because "Black Mail" might have negative connotations. Perhaps just as interesting, Levison is going to be releasing the Lavabit source code (and doing a Kickstarter project to support this), with the hope that many others can set up their own secure email using Lavabit's code, combined with the new Dark Mail Alliance secure technology which will be available next year. As noted, the Alliance is working on trying to create truly secure and surveillance-proof email. Of course, nothing is ever 100% surveillance proof -- and both members of the alliance have previously claimed that it was almost impossible to do surveillance-proof email. However, they're claiming they've had a "breakthrough" that will help.
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The newly developed technology has been designed to look just like ordinary email, with an interface that includes all the usual folders—inbox, sent mail, and drafts. But where it differs is that it will automatically deploy peer-to-peer encryption, so that users of the Dark Mail technology will be able to communicate securely. The encryption, based on a Silent Circle instant messaging protocol called SCIMP, will apply to both content and metadata of the message and attachments. And the secret keys generated to encrypt the communications will be ephemeral, meaning they are deleted after each exchange of messages. For the NSA and similar surveillance agencies across the world, it will sound like a nightmare. The technology will thwart attempts to sift emails directly from Internet cables as part of so-called “upstream” collection programs and limit the ability to collect messages directly from Internet companies through court orders. Covertly monitoring encrypted Dark Mail emails would likely have to be done by deploying Trojan spyware on a targeted user. If every email provider in the world adopted this technology for all their users, it would render dragnet interception of email messages and email metadata virtually impossible.
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Importantly, they're not asking everyone to just trust them to be secure -- even though both companies have the right pedigree to deserve some level of trust. Instead, they're going to release the source code for public scrutiny and audits, and they're hoping that other email providers will join the alliance. At the conference, Levison recounted much of what's happened over the last few months (with quite a bit of humor), joking about how he tried to be "nice" in giving the feds Lavabit's private keys printed out, by noting that he included line numbers to help (leaving unsaid that this would make OCR'ing the keys even more difficult). He also admitted that giving them the paper version was really just a way to buy time to shut down Lavabit.
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Janke came up on stage to talk about the importance of changing the 40-year-old architecture of email, because it's just not designed for secure communications. The hope is that as many other email providers as possible will join the Alliance and that this new setup becomes the de facto standard for end-to-end secure email, which is where Levison's open sourcing of his code gets more interesting. In theory, if it all works out, it could be a lot easier for lots of companies to set up their own "dark mail" email providers. Either way, I would imagine that this development can't make the NSA all that happy.
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State Dept. turns up thousands of emails from top Clinton aide | TheHill - 0 views
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State Department officials have uncovered thousands of emails between Philippe Reines, a top Hillary Clinton aide, and members of the media, they previously said did not exist.In a court filing last Thursday, the State Department estimated that a recent search turned up more than 81,000 emails from Reines’s official account while at the State Department. And 17,855 potentially fall within a Freedom of Information Act (FOIA) lawsuit filed by Gawker earlier this year.ADVERTISEMENTThat is a reversal from 2013, when the State Department said a thorough search turned up no responsive records for Gawker’s request. In 2012, Gawker requested all emails between Reines and reporters from 34 media outlets.The State Department did not explain the reversal in the court document, nor did it return a request for comment.It will begin releasing a tranche of Reines's emails by the end of September.
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fter it was revealed earlier this year that Clinton, and potentially some of her aides, used personal email accounts for official business, Gawker sued the State Department over its initial request for communications between Reines and reporters.Gawker asserted the search must not have been exhaustive if it turned up no emails between the press and a State Department spokesman, who regularly communicated with the media.In March, Reines said reporters would have to ask the State Department about the apparent discrepancy.In last week’s court filing, the State Department estimated it would begin releasing some of those emails that do not fall within an exemption on Sept. 30. It will release more every 30 days as they are reviewed.The agency said it does not know how many of the 17,855 are exempt from disclosure and will have to be redacted or handed over to other agencies for redaction
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AIPAC's Plan B? « LobeLog - 0 views
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A summary of a draft bill, which I obtained from a source who asked to remain anonymous, is circulating that is designed (almost certainly by AIPAC) to appeal to those Democrats eager to “kiss and make up” after their defiance of Washington’s most powerful foreign-policy lobby group (whose reputation for omnipotence just took a very heavy hit) and its funders. While much of the summary appears innocuous and consistent with the administration’s own policy and intentions, it also contains a number of “poison pills,” which, if approved, appear calculated to raise new obstacles to implementation and Tehran’s confidence that the U.S. will fully comply with both the spirit and the letter of the JCPOA. With proposed banking sanctions, for example, it appears to do what Fred Kagan and the policy director of the neo-conservative Foreign Policy Initiative (FPI), Juan Zarate, have urged with respect to codifying existing non-nuclear sanctions and reducing or eliminating the president’s waiver authority. (See the Mikulski post for more details.) It also would set up a process for “expedited procedures” that can be used by Congress to approve new terrorism-related sanctions against Iran under certain circumstances and create a Coordinator for Compliance whose responsibilities include not only overseeing Iran’s implementation of the JCPOA but also reporting on non-nuclear issues (like terrorism) that are outside the scope of the agreement.
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Yet another provision would authorize the delivery to Israel of Washington’s most powerful Massive Ordinance Penetration munitions (MOPs) and the means to deliver them against Iran’s nuclear facilities, a move that administration officials have long said they strongly oppose. This would be one part of a much-enhanced package of military assistance for Israel. Other provisions appear designed to effectively “renegotiate” certain provisions of the JCPOA; for example, by eliminating the exemption of any contracts agreed between Iran and foreign companies during the agreement’s implementation phase in the event that sanctions are “snapped back.” It also requires Iran to abide by the Non-Proliferation Treaty’s (NPT) Additional Protocol as of “adoption day,” even if the Iranian parliament has not yet ratified the Protocol. We hear that the sponsors intend to push this through Congress as a companion to the disapproval resolution. The idea is to enable nervous Democrats to demonstrate their strong support for Israel and their undiluted distrust and hostility toward Iran. They reportedly fear that if this measure isn’t enacted now, then it could prove much more difficult to pass once Iran begins implementing the JCPOA, and particularly if and when the IAEA declares that Iran has cleared up long-pending questions regarding “possible military dimensions” (PMD) of its nuclear program. The IAEA expects to conclude its PMD-related inspections by mid-October and issue a final report by December 15. Here is the summary of the draft bill which, as I understand it, is still very much a work in progress. The Iran Policy Oversight Act of 2015
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shared by Paul Merrell on 26 May 15
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Multiple Polls: Americans Are More Afraid of the GOVERNMENT than TERRORISTS Washington'... - 0 views
www.washingtonsblog.com/...overnment-than-terrorists.html
war & peace war on terror™ polls liberty security
shared by Paul Merrell on 26 May 15
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According to a pair of recent polls, for the first time since the 9/11 terrorist hijackings, Americans are more fearful their government will abuse constitutional liberties than fail to keep its citizens safe. Even in the wake of the April 15 Boston Marathon bombing – in which a pair of Islamic radicals are accused of planting explosives that took the lives of 3 and wounded over 280 – the polls suggest Americans are hesitant to give up any further freedoms in exchange for increased “security.” A Fox News survey polling a random national sample of 619 registered voters the day after the bombing found despite the tragic event, those interviewed responded very differently than following 9/11. For the first time since a similar question was asked in May 2001, more Americans answered “no” to the question, “Would you be willing to give up some of your personal freedom in order to reduce the threat of terrorism?”
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Of those surveyed on April 16, 2013, 45 percent answered no to the question, compared to 43 percent answering yes. In May 2001, before 9/11, the balance was similar, with 40 percent answering no to 33 percent answering yes. But following the terrorist attacks of 9/11, the numbers flipped dramatically, to 71 percent agreeing to sacrifice personal freedom to reduce the threat of terrorism. Subsequent polls asking the same question in 2002, 2005 and 2006 found Americans consistently willing to give up freedom in exchange for security. Yet the numbers were declining from 71 percent following 9/11 to only 54 percent by May 2006. Now, it would seem, the famous quote widely attributed to Benjamin Franklin – “They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety” – is holding more sway with Americans than it has in over a dozen years.
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A similar poll sampling 588 adults, conducted on April 17 and 18 for the Washington Post, also discovered the change in attitude. “Which worries you more,” the Post asked, “that the government will not go far enough to investigate terrorism because of concerns about constitutional rights, or that it will go too far in compromising constitutional rights in order to investigate terrorism?” The poll found 48 percent of respondents worry the government will go too far, compared to 41 percent who worry it won’t go far enough. And similar to the Fox News poll, the Post found the worry to be a fresh development, as only 44 percent worried the government would go too far in January 2006 and only 27 percent worried the government would go too far in January 2010.
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The Fox News poll found that a bare majority of Democrats (51%) would give up more personal freedom to reduce the threat of terror, while only 47% of Republicans – and a mere 29% of independents – would do so. This is not entirely surprising. As we noted in February: For years, “conservative” pollsters have said that Americans are furious at the government: Rasmussen noted in 2010 that only a small minority of the American people think that the government has the consent of the governed, and that the sentiment was “pre-revolutionary” Gallup noted in 2011 that a higher percentage of American liked King George during the colonial days than currently like Congress
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And last year, Gallup noted that trust was plummeting in virtually all institutions Liberals may be tempted to think that this is a slanted perspective. But non-partisan and liberal pollsters are saying the same thing: An NBC News/Wall Street Journal poll from 2011 found that 76% of Americans believe that the country’s current financial and political structures favor the rich over the rest of the country The Washington Post reported in 2011 that Congress was less popular than communism, BP during the Gulf oil spill or Nixon during Watergate
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Public Policy Polling added last month that Congress is also less popular than cockroaches, lice, root canals, colonoscopies, traffic jams, used car salesman and Genghis Khan And the liberal Pew Charitable Trusts noted last week that – for the first time – a majority of the public says that the federal government threatens their personal rights and freedoms: The latest national survey by the Pew Research Center for the People & the Press, conducted Jan. 9-13 among 1,502 adults, finds that 53% think that the federal government threatens their own personal rights and freedoms while 43% disagree. In March 2010, opinions were divided over whether the government represented a threat to personal freedom; 47% said it did while 50% disagreed. In surveys between 1995 and 2003, majorities rejected the idea that the government threatened people’s rights and freedoms.
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*** The survey finds continued widespread distrust in government. About a quarter of Americans (26%) trust the government in Washington to do the right thing just about always or most of the time; 73% say they can trust the government only some of the time or volunteer that they can never trust the government. *** Majorities across all partisan and demographic groups express little or no trust in government. Obviously, Democrats are currently more trusting in government than Republicans. For example: The Pew Research Center’s 2010 study of attitudes toward government found that, since the 1950s, the party in control of the White House has expressed more trust in government than the so-called “out party.”
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But given that even a growing percentage of Dems believe that government is a threat to their freedom, things are indeed getting interesting … It doesn’t help that the government claims the power to assassinate American citizens living on U.S. soil, indefinitely detain Americans without trial, spy on everyone and otherwise intrude into every aspect of our lives. Postscript: What are the actual risks coming from government versus terrorism? That’s an interesting question.
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From 2013, not long after the Boston Bombing. I never had much respect for those willing to surrender my liberties so they could feel a bit more secure. "Security is mostly a superstition. It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure, or nothing." Helen Keller, The Open Door (1957).
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Palestinian Unity Government Pulls Up Stakes | nsnbc international - 0 views
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The Palestinian unity government formed last year in a bid to heal rifts between Hamas and president Mahmoud Abbas’ Fatah party resigned on Wednesday, an official said. According to AFP, an aide to president Mahmoud Abbas said that prime minister Rami Hamdallah “handed his resignation to Abbas and Abbas ordered him to form a new government.”
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Discussions to form a new government would include consultations with the various Palestinian factions, including Hamas, he said.
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Officials have said the planned dissolution of the government, made up of technocrats, had been under discussion for several months because of the cabinet’s inability to operate in the Hamas-dominated Gaza Strip. Both Hamas and Islamic Jihad have condemned the unilateral dissolution of the government, a decision they say they were not consulted over. “No one told us anything about any decision to change and no one consulted with us about any change in the unity government. Fateh acted on its own in all regards,” Hamas spokesman Sami Abu Zuhri told AFP Wednesday. Khalid al-Batsh, a senior leader in Islamic Jihad, also condemned the “unilateral” move to dissolve the unity government. Before the official resignation, a PLO official said, “The government will continue to function until we have a new one. “I think what’s coming now is the formation of a government with politicians, not a government of technocrats.” Senior Hamas official Ziad al-Zaza meanwhile struck a conciliatory note, calling on Abbas “to form a unity government with all national and Islamic factions to face Israeli occupation.”
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The move comes at a critical time, with Hamas sources reporting the group is holding separate, indirect talks with Israel on ways to firm up an informal ceasefire agreement that took hold last August, ending the 50-day war in Gaza. It was not clear whether Abbas’s move to dissolve the government was linked to those talks, but the PLO official said he believed that they played a role. “If you end up having a different kind of status for Gaza, then basically the idea of a Palestinian state completely disappears,” the official said. Another high-ranking Hamas official said he believed Abbas decided to act after receiving word of the indirect contacts.
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American Thinker: Obama's Ides-of-March Moment is Near - 0 views
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If Bernanke stops QE, he fulfills his role as an independent central banker. Presumably, that action stops the decline in the dollar and reduces the risk of future inflation. It was the course that Paul Volcker chose in the late 1970s. Volcker's action was bold, highly controversial, and highly criticized. Volcker's action had the support of President Reagan, who was willing to face short-term unpopularity to fix the economy. Bernanke's task is harder than Volcker's. Volcker stopped the economy dead in its tracks. If Bernanke ends QE, he will stop both the economy and the federal government dead in their tracks.Without QE, the government will be unable to honor its obligations. Non-payment of Social Security or Medicare or federal payroll or welfare checks or retirement checks, or military payroll, etc., etc., would show up almost immediately. That would jeopardize foreign (and domestic) purchases of additional federal debt, exacerbating the problem. Bernanke's second option enables the government to continue operating irresponsibly until market forces eventually stop the profligate behavior. Market discipline would likely be imposed in the form of a collapse of the dollar or raging inflation (or both). Under either scenario, the Obama presidency is destroyed.
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Incredible must read for all Americans. excerpt: By the end of March, Barack Obama's administration will face its destiny, its Brutus a pawn of the fates. In Jimmy Carter's presidency, the Wall Street Journal editorialized about "Ratcheting to Ruin." The title derived from the fact that each cycle high in unemployment was higher than previous ones, and each cycle high in inflation was also. "Stagflation" was the neologism coined to describe what up until then was believed to be impossible in the Keynesian world. This period ushered in a new era in both politics and economics. Carter was replaced by Reagan, and Keynes was replaced by Friedman. Thirty years later, Keynes is back in vogue, Obama has ascended to the White House, and times are reminiscent of the Carter era. The economy is awful. Fear and dissatisfaction prevail. Politicians are held in contempt. There is one major difference -- Carter did not face an "ides of March" event. ..... The problem is bigger than the numbers above might suggest. Budget forecasts show that the problem increases over time. In addition, 40% of existing debt matures in the next year. That means $2.8 trillion of debt has to be refinanced. The Treasury must sell on average $90 billion of debt a week! In five weeks, we need to sell $450 billion. That is equal to the largest full-year deficit in history, at least until Obama's first year. There are no plans to curb spending or cut deficits. President Obama just increased the debt ceiling by $1.9 trillion. To outsiders, we appear like a banana republic with ICBMs. Does anyone seriously believe that funding based on "the kindness of strangers" is workable much longer? ..... If Bernanke stops QE, he fulfills his role as an independent central banker. Presumably, that action stops the decline in the dollar and reduces the risk of future inflation. It was the course that Paul Volcker chose in the late 1970s. Volcker's action was bold, highly controversial, and highly criticized. Vol
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Data Pirates of the Caribbean: The NSA Is Recording Every Cell Phone Call in the Bahama... - 0 views
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surveillance state NSA DEA cell-phone-dragnet-recording
shared by Paul Merrell on 20 May 14
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The National Security Agency is secretly intercepting, recording, and archiving the audio of virtually every cell phone conversation on the island nation of the Bahamas. According to documents provided by NSA whistleblower Edward Snowden, the surveillance is part of a top-secret system – code-named SOMALGET – that was implemented without the knowledge or consent of the Bahamian government. Instead, the agency appears to have used access legally obtained in cooperation with the U.S. Drug Enforcement Administration to open a backdoor to the country’s cellular telephone network, enabling it to covertly record and store the “full-take audio” of every mobile call made to, from and within the Bahamas – and to replay those calls for up to a month. SOMALGET is part of a broader NSA program called MYSTIC, which The Intercept has learned is being used to secretly monitor the telecommunications systems of the Bahamas and several other countries, including Mexico, the Philippines, and Kenya. But while MYSTIC scrapes mobile networks for so-called “metadata” – information that reveals the time, source, and destination of calls – SOMALGET is a cutting-edge tool that enables the NSA to vacuum up and store the actual content of every conversation in an entire country.
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All told, the NSA is using MYSTIC to gather personal data on mobile calls placed in countries with a combined population of more than 250 million people. And according to classified documents, the agency is seeking funding to export the sweeping surveillance capability elsewhere. The program raises profound questions about the nature and extent of American surveillance abroad. The U.S. intelligence community routinely justifies its massive spying efforts by citing the threats to national security posed by global terrorism and unpredictable rival nations like Russia and Iran. But the NSA documents indicate that SOMALGET has been deployed in the Bahamas to locate “international narcotics traffickers and special-interest alien smugglers” – traditional law-enforcement concerns, but a far cry from derailing terror plots or intercepting weapons of mass destruction.
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By targeting the Bahamas’ entire mobile network, the NSA is intentionally collecting and retaining intelligence on millions of people who have not been accused of any crime or terrorist activity. Nearly five million Americans visit the country each year, and many prominent U.S. citizens keep homes there, including Sen. Tom Harkin (D-Iowa), Bill Gates, and Oprah Winfrey.
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The Intercept has confirmed that as of 2013, the NSA was actively using MYSTIC to gather cell-phone metadata in five countries, and was intercepting voice data in two of them. Documents show that the NSA has been generating intelligence reports from MYSTIC surveillance in the Bahamas, Mexico, Kenya, the Philippines, and one other country, which The Intercept is not naming in response to specific, credible concerns that doing so could lead to increased violence. The more expansive full-take recording capability has been deployed in both the Bahamas and the unnamed country. MYSTIC was established in 2009 by the NSA’s Special Source Operations division, which works with corporate partners to conduct surveillance. Documents in the Snowden archive describe it as a “program for embedded collection systems overtly installed on target networks, predominantly for the collection and processing of wireless/mobile communications networks.”
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If an entire nation’s cell-phone calls were a menu of TV shows, MYSTIC would be a cable programming guide showing which channels offer which shows, and when. SOMALGET would be the DVR that automatically records every show on every channel and stores them for a month. MYSTIC provides the access; SOMALGET provides the massive amounts of storage needed to archive all those calls so that analysts can listen to them at will after the fact. According to one NSA document, SOMALGET is “deployed against entire networks” in the Bahamas and the second country, and processes “over 100 million call events per day.”
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When U.S. drug agents need to tap a phone of a suspected drug kingpin in another country, they call up their counterparts and ask them set up an intercept. To facilitate those taps, many nations – including the Bahamas – have hired contractors who install and maintain so-called lawful intercept equipment on their telecommunications. With SOMALGET, it appears that the NSA has used the access those contractors developed to secretly mine the country’s entire phone system for “signals intelligence” –recording every mobile call in the country. “Host countries,” the document notes, “are not aware of NSA’s SIGINT collection.” “Lawful intercept systems engineer communications vulnerabilities into networks, forcing the carriers to weaken,” says Christopher Soghoian, the principal technologist for the American Civil Liberties Union. “Host governments really should be thinking twice before they accept one of these Trojan horses.”
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The DEA has long been in a unique position to help the NSA gain backdoor access to foreign phone networks. “DEA has close relationships with foreign government counterparts and vetted foreign partners,” the manager of the NSA’s drug-war efforts reported in a 2004 memo. Indeed, with more than 80 international offices, the DEA is one of the most widely deployed U.S. agencies around the globe. But what many foreign governments fail to realize is that U.S. drug agents don’t confine themselves to simply fighting narcotics traffickers. “DEA is actually one of the biggest spy operations there is,” says Finn Selander, a former DEA special agent who works with the drug-reform advocacy group Law Enforcement Against Prohibition. “Our mandate is not just drugs. We collect intelligence.” What’s more, Selander adds, the NSA has aided the DEA for years on surveillance operations. “On our reports, there’s drug information and then there’s non-drug information,” he says. “So countries let us in because they don’t view us, really, as a spy organization.”
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“I seriously don’t think that would be your run-of-the-mill legal interception equipment,” says the former engineer, who worked with hardware and software that typically maxed out at 1,000 intercepts. The NSA, by contrast, is recording and storing tens of millions of calls – “mass surveillance,” he observes, that goes far beyond the standard practices for lawful interception recognized around the world. The Bahamas Telecommunications Company did not respond to repeated phone calls and emails.
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The proliferation of private contractors has apparently provided the NSA with direct access to foreign phone networks. According to the documents, MYSTIC draws its data from “collection systems” that were overtly installed on the telecommunications systems of targeted countries, apparently by corporate “partners” cooperating with the NSA. One NSA document spells out that “the overt purpose” given for accessing foreign telecommunications systems is “for legitimate commercial service for the Telco’s themselves.” But the same document adds: “Our covert mission is the provision of SIGINT,” or signals intelligence.
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According to the NSA documents, MYSTIC targets calls and other data transmitted on Global System for Mobile Communications networks – the primary framework used for cell phone calls worldwide. In the Philippines, MYSTIC collects “GSM, Short Message Service (SMS) and Call Detail Records” via access provided by a “DSD asset in a Philippine provider site.” (The DSD refers to the Defence Signals Directorate, an arm of Australian intelligence. The Australian consulate in New York declined to comment.) The operation in Kenya is “sponsored” by the CIA, according to the documents, and collects “GSM metadata with the potential for content at a later date.” The Mexican operation is likewise sponsored by the CIA. The documents don’t say how or under what pretenses the agency is gathering call data in those countries. In the Bahamas, the documents say, the NSA intercepts GSM data that is transmitted over what is known as the “A link”–or “A interface”–a core component of many mobile networks. The A link transfers data between two crucial parts of GSM networks – the base station subsystem, where phones in the field communicate with cell towers, and the network subsystem, which routes calls and text messages to the appropriate destination. “It’s where all of the telephone traffic goes,” says the former engineer.
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When U.S. drug agents wiretap a country’s phone networks, they must comply with the host country’s laws and work alongside their law enforcement counterparts. “The way DEA works with our allies – it could be Bahamas or Jamaica or anywhere – the host country has to invite us,” says Margolis. “We come in and provide the support, but they do the intercept themselves.” The Bahamas’ Listening Devices Act requires all wiretaps to be authorized in writing either by the minister of national security or the police commissioner in consultation with the attorney general. The individuals to be targeted must be named. Under the nation’s Data Protection Act, personal data may only be “collected by means which are both lawful and fair in the circumstances of the case.” The office of the Bahamian data protection commissioner, which administers the act, said in a statement that it “was not aware of the matter you raise.” Countries like the Bahamas don’t install lawful intercepts on their own. With the adoption of international standards, a thriving market has emerged for private firms that are contracted by foreign governments to install and maintain lawful intercept equipment. Currently valued at more than $128 million, the global market for private interception services is expected to skyrocket to more than $970 million within the next four years, according to a 2013 report from the research firm Markets and Markets.
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If the U.S. government wanted to make a case for surveillance in the Bahamas, it could point to the country’s status as a leading haven for tax cheats, corporate shell games, and a wide array of black-market traffickers. The State Department considers the Bahamas both a “major drug-transit country” and a “major money laundering country” (a designation it shares with more than 60 other nations, including the U.S.). According to the International Monetary Fund, as of 2011 the Bahamas was home to 271 banks and trust companies with active licenses. At the time, the Bahamian banks held $595 billion in U.S. assets. But the NSA documents don’t reflect a concerted focus on the money launderers and powerful financial institutions – including numerous Western banks – that underpin the black market for narcotics in the Bahamas. Instead, an internal NSA presentation from 2013 recounts with pride how analysts used SOMALGET to locate an individual who “arranged Mexico-to-United States marijuana shipments” through the U.S. Postal Service.
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The presentation doesn’t say whether the NSA shared the information with the DEA. But the drug agency’s Special Operations Divison has come under fire for improperly using classified information obtained by the NSA to launch criminal investigations – and then creating false narratives to mislead courts about how the investigations began. The tactic – known as parallel construction – was first reported by Reuters last year, and is now under investigation by the Justice Department’s inspector general. So: Beyond a desire to bust island pot dealers, why would the NSA choose to apply a powerful collection tool such as SOMALGET against the Bahamas, which poses virtually no threat to the United States? The answer may lie in a document that characterizes the Bahamas operation as a “test bed for system deployments, capabilities, and improvements” to SOMALGET. The country’s small population – fewer than 400,000 residents – provides a manageable sample to try out the surveillance system’s features. Since SOMALGET is also operational in one other country, the Bahamas may be used as a sort of guinea pig to beta-test improvements and alterations without impacting the system’s operations elsewhere. “From an engineering point of view it makes perfect sense,” says the former engineer. “Absolutely.”
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SOMALGET operates under Executive Order 12333, a Reagan-era rule establishing wide latitude for the NSA and other intelligence agencies to spy on other countries, as long as the attorney general is convinced the efforts are aimed at gathering foreign intelligence. In 2000, the NSA assured Congress that all electronic surveillance performed under 12333 “must be conducted in a manner that minimizes the acquisition, retention, and dissemination of information about unconsenting U.S. persons.” In reality, many legal experts point out, the lack of judicial oversight or criminal penalties for violating the order render the guidelines meaningless. “I think it would be open, whether it was legal or not,” says German, the former FBI agent. “Because we don’t have all the facts about how they’re doing it. For a long time, the NSA has been interpreting their authority in the broadest possible way, even beyond what an objective observer would say was reasonable.” “An American citizen has Fourth Amendment rights wherever they are,” adds Kurt Opsahl, an attorney with the Electronic Frontier Foundation. “Nevertheless, there have certainly been a number of things published over the last year which suggest that there are broad, sweeping programs that the NSA and other government agencies are doing abroad that sweep up the communications of Americans.”
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Legal or not, the NSA’s covert surveillance of an entire nation suggests that it will take more than the president’s tepid “limits” to rein in the ambitions of the intelligence community. “It’s almost like they have this mentality – if we can, we will,” says German. “There’s no analysis of the long-term risks of doing it, no analysis of whether it’s actually worth the effort, no analysis of whether we couldn’t take those resources and actually put them on real threats and do more good.” It’s not surprising, German adds, that the government’s covert program in the Bahamas didn’t remain covert. “The undermining of international law and international cooperation is such a long-term negative result of these programs that they had to know would eventually be exposed, whether through a leak, whether through a spy, whether through an accident,” he says. “Nothing stays secret forever. It really shows the arrogance of these agencies – they were just going to do what they were going to do, and they weren’t really going to consider any other important aspects of how our long-term security needs to be addressed.”
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shared by Paul Merrell on 06 Jan 15
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The new European 'arc of instability' - RT Op-Edge - 0 views
rt.com/...3-putin-russia-sovereign-swift
war & peace economic-warfare Russia U.S.-foreign-policy Eurasia
shared by Paul Merrell on 06 Jan 15
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The European Council on Foreign Relations and Berlin think-tank Friedrich Ebert Stiftung have just reached more or less the same conclusion. If the dangerous stand-off between the EU and Russia over Ukraine is not solved, the EU could face, up to 2030, a military build-up in eastern Europe; a new arms race with NATO as a protagonist; and a semi-permanent “zone of instability” from the Baltic to the Balkans and the Black Sea. What these two think-tanks don’t – and won’t – ever acknowledge is that a new European “arc of instability” – from the Baltic to the Black Sea, as myself and other independent analysts have stressed – is exactly what the Empire of Chaos and its weaponized arm – NATO – are working on to prevent closer Eurasia integration. By the way, the Pentagon excels in fabricating “arcs of instability.” The previous one was – and remains – massive, stretching from the Maghreb to Xinjiang in western China across the Middle East and Central Asia.
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Moscow has totally identified the plot; Foreign Minister Sergey Lavrov, once again, has made it crystal clear, in detail. And crucially, some influential sectors in Germany also did, as in members of the cultural elite destroying the notion of a new war in Europe: “Not in our name.” The same applies to those that always preach more transatlantic cooperation, extol the US’s “defining” role in Germany, and effusively praise Germany as the most American country in Europe; that’s the case of the Frankfurter Allgemeine newspaper – which stands for the core of the political and economic establishment in Germany. It’s still in an embryonic stage, and has not yet made Chancellor Angela Merkel see the light; but a reverse reengineering of Atlanticist relations is already in progress in Germany.
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Meanwhile, the proverbial group of extremist US senators, plus the notorious poodles/vassals of Britain and Poland, haven’t stopped lobbying to shut Russia off from SWIFT – just as they did with Iran. This would be nothing but yet another declaration of (economic) war – or the economic counterpoint to NATO hysteria. In fairness, a great deal of the EU – especially Germany – knows this is madness. Germany’s top financial paper Handelsblatt recently published a key interview with head of VTB-Bank Andrei Kostin, which has still not been translated into any major English-language paper.
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Kostin went straight to the point: “Of course, there is a plan B [in the case of Russia being shut off from the SWIFT bank system], but in my personal opinion it would mean war – if this type of sanction will be introduced. America and Europe did that against Iran but with Iran at that time there were no diplomatic relations, only military containment...if Russian banks’ access to SWIFT will be prohibited, the US ambassador to Moscow should leave the same day. Diplomatic relations must be finished. Banking is the most vulnerable part of the Russian economy because the system is based so strongly on the dollar and the euro.” Next May, Russia’s Central Bank is planning to introduce an analogue to SWIFT – after key consultations with China. It’s always important to keep in mind that China set up a parallel SWIFT to do business with Iran under sanctions. But still there will be a window of four months for a lot of nasty things to happen after a Republican-controlled US Senate is empowered in January.
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And then there’s the golden rule. Why is Russia buying so much gold? With the US dollar forced upward and gold downward, it makes total business sense to sell gas for inflated dollars and then buy cheap depressed gold; that’s what the Chinese call a “win-win.” And of course on both counts, the West loses. The Washington/Wall Street elites are fully aware that both Moscow and Beijing won’t accumulate US dollars anymore. As for the Masters of the Universe plutocrats who manipulate/control the value of the US dollar, a case can be made that one of their purposes is wrecking the US’s industrial base and the nation’s middle classes. Moscow, meanwhile, has adjusted to the new “instability.” The weak ruble has a positive effect – already stressed by President Putin – by forcing Russia to diversify its manufacturing and become more self-sufficient.
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Of course, the problem remains for Russia to pay the foreign interest on its debt in US dollars. Moscow could always declare a moratorium in debt repayments. The ruble might go down even more. But as everyone from Lukoil to Rosneft converts more US dollars into rubles, that will drive the ruble back up. Not to mention that the ruble is shorted as it stands. The bottom line is that Moscow has learned yet another lesson for the immediate future: never become indebted to the West. What’s certain is that the Empire of Chaos won’t relent in its strategy of heating up the new arc of instability – inside Europe, across the economic/financial spectrum – and instrumentalizing its pre-fabricated New Iron Curtain from the Baltic to the Black Sea. The Kremlin seems to know exactly how high the stakes are. As The Saker told me in an email, “Putin is telling both the West and the Russian people that there is a long war in progress and that the Russian people have to morally be prepared to accept sacrifices for the survival of Russia. This is one more step in the 'coming-out' of what I call the ‘Eurasian Sovereignists’ in which the US [has] now openly declared as a Russophobic (Russia-hating and Russia-fearing) enemy, and the Europeans as a powerless colony. Military power is not directly a factor in this, the internal power balance between the pro-Western ‘Atlantic Integrationists’ and the ‘Eurasian Sovereignists’ is.” It’s all here – from the debacle of a regime (Bretton Woods) to the current, provoked crisis, all brilliantly explained by Mikhail Khazin. Russia is getting ready to rock. Is the West?
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Civil Unrest Ahead - LewRockwell.com - 0 views
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The Victimized Inner Cities
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This social disruption has motivated the enthusiastic growth and militarization of our local police departments. The law and order crowd thrives on excessive laws and regulations that no US citizen can escape. The out-of-control war on drugs is the worst part, and it generates the greatest danger in poverty-ridden areas via out-of-control police. It is estimated that these conditions have generated up to 80,000 SWAT raids per year in the United States. Most are in poor neighborhoods and involve black homes and businesses being hit disproportionately. This involves a high percentage of no-knock attacks. As can be expected many totally innocent people are killed in the process. Property damage is routine and compensation is rare. The routine use of civil forfeiture of property has become an abomination, totally out of control, which significantly contributes to the chaos. It should not be a surprise to see resentment building up against the police under these conditions. The violent reaction against local merchants in retaliation for police actions further aggravates the situation —hardly a recipe for a safe neighborhood.
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Civil liberties are ignored by the police, and the private property of innocent bystanders is disregarded by those resenting police violence.
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The entitlement mentality is a source of much anger and misunderstanding. It leads people who see themselves as victims to one conclusion: they are entitled to be taken care of.
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If one trillion dollars per year doesn’t do the job, then make it $2 trillion. If the war on poverty’s $16 trillion hasn’t worked, make it $32 trillion.
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The wealthy special interests, such as banks, the military-industrial complex, the medical industry, the drug industry, and many other corporatists, quickly gain control of the system.
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Honest profits of successful entrepreneurs are quite different than profits of the corporate elite who gain control of the government and, as a consequence, accumulate obscene wealth by “robbing” the middle class.
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To blame and destroy those who make an honest living by satisfying consumers without the use of special benefits from the government is destructive to liberty and wealth.
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Crumbs may be thrown to the poor, but the principle of wealth transfer is hijacked and used for corporate and foreign welfare instead of wealth transfers to the poor.
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True satisfaction comes from productive effort and self-reliance and not from a government transferring wealth in an effort to bring about an egalitarian society.
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The people have too little confidence that most problems can be solved in a voluntary manner in a society that cherishes civil liberties. There’s never an admission that government problem-solving doesn’t work. Government-created problems are a road to poverty and resentment. Too many people believe that “free stuff” from the government can solve our problems. They mistakenly believe that deficits don’t matter and that wealth can come from a printing press.
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The high profile episodes of police violence and overreaction are a consequence of conditions that in many ways were generated by government policy.
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equal justice requires the end of welfare redistribution
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Retraining the police won’t touch the complex problems that pit the police against the victims of complex social conditions generated by hate, violence and bad economic policies.
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Redistribution is a process that is always destined to help a small minority, whether in an economy like ours that endorses central economic planning or in one run by radical fascists or communists.
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Under an authoritarian regime, those in power take care of themselves. This always leads to poverty and discrepancy in wealth distribution.
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Eventually the social strife that is predictable leads to an overthrow of the government.
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The strife that we are witnessing is a reflection of a growing number of people who are recognizing the discrepancy between rich and poor, the weak and the powerful, Wall Street and Main Street.
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Both political parties are financed by Wall Street, the big banks, and the military-industrial complex. Getting rich by being part of the government class is the problem.
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Indeed the rich are getting richer and the poor poorer. The extreme current inequality is not a consequence of free markets and true liberty. Rather it results from the welfare state that, as always, morphs into a system that provides excesses for the powerful few.
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The economic interventionist system under which we live today rewards those who benefit from government economic planning by the Federal Reserve, access to government contracts, and targeted special regulations to help one group over the other
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There are two problems. First is conceding the principle that government has the moral authority to redistribute wealth. Second is believing the redistribution will be managed wisely and without corruption.
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Police brutality and militarization may well induce a violent event far beyond what we have seen in Ferguson. It also can serve as an excuse. But it is not the root cause of turmoil. The real cause is poverty, the entitlement mentality, and the breakdown of the rule of law. Moral decay and the national police state are the real culprits.
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We must limit the government’s role to protecting equal justice in defense of life, liberty, and property.
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We have too many police, too many laws, and too much exemption of government officials from the crimes they commit.
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There has to be an understanding that productive effort and self-reliance on the part of everyone is required for a free society to thrive.
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The loss of our liberty has sharply accelerated since the 9/11 attacks. We have done to ourselves what no foreign enemy could have possibly accomplished.
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Welfare, for the rich or poor, cannot exist without the sacrifice of the principal of property ownership.
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The national police are made up of over 100,000 bureaucrats and police officials who carry guns to enforce federal law on the American citizens.
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Today every American is a suspect. Our president has established a policy that an American citizen can be assassinated without even being charged with a crime.
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The Founders and our Constitution intended that policing powers would be the responsibility of the individual states. That was forgotten a long time ago
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the Feds are there taking charge over all local officials and property owners,
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The Founders did not even want a standing army. They wanted only a militia.
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Old-fashioned colonialism was deemed necessary by various European powers to secure natural resources along with control over sea lanes and markets for selling manufactured goods.
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European-style colonialism — supporting a mercantilistic economy — came to be seen as politically unrealistic and unnecessary.
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We are now subject to an out-of-control domestic police force while the US military maintains our Empire overseas.
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When free-trade principles were utilized, colonialism did not die; it only changed form. Mercantilism in various forms and degrees drove trade policies of nations with strong economies and militaries.
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The United States military presence around the world provides a “private” police force to protect US and other international companies against any local resistance or leaders that turn unfriendly. Our military presence overseas has nothing to do with protecting our freedoms and defending our Constitution.
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The international monetary system is a powerful tool for the select few.
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In fact, the real heroes are the ones who expose the truth and refuse to fight foreign wars for the international corporations.
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The “one percenters,” generally speaking, are internationalists who are not champions of individual liberty and free trade. They are supporters of managed trade and international institutions like the WTO where the interests of the one percent can influence the rulings that frequently have little to do with advancing advertised goals of low tariffs and free trade.
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Disengaging our troops from around the world and refusing to defend American neocolonialism is pursuing a course compatible with the qualities that Americans claim to stand for.
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The obsession with continuing all the same policies has increased our poverty, increased violence between the classes, and lowered the standard of living for all except the elite one percent. And worst of all, the sacrifice of liberty was for naught.
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Losing both liberty and the right to truly own property undermines the ability to create wealth.
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When this process gets out-of-control the economy goes into a death spiral, in the beginning of which we currently find ourselves. Without a correction to the basic understanding of the proper role of government, the downward spiral will continue.
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Tax revenues will continue to rise, aiding the policy of the government spending the people’s money rather than those who earned it.
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Wall Street will be protected, and the trillions of dollars of big banks derivatives will be absorbed by the Fed, the FDIC, and ultimately by the American taxpayers in the next financial crisis.
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There’s no doubt the poor will get poorer and the rich richer until the spirit of revolution in the people calls a halt to the systematic destruction of freedom in America.
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Authoritarianism has overtaken our economic system as the welfare mentality takes over at every level of government.
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Once the initiation of force by government is accepted by the people, even minimally, it escalates and involves every aspect of society. The only question that remains is just who gets to wield the power to distribute the largess to their friends and chosen beneficiaries.
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It’s a recipe for steady growth of the government at the expense of liberties, even if official documents and laws written to limit government power are in place.
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Restraining the few who thrive on the use of force to rule over us is the challenge. Fortunately they are outnumbered by those who would choose liberty yet lack the will to challenge the humanitarian monsters who gain support from naive and apathetic citizens.
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The sentiments supporting secession, jury nullification, nullification of federal laws by state legislatures, and a drive for more independence from larger governments will continue.
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"If Americans were honest with themselves they would acknowledge that the Republic is no more. We now live in a police state. If we do not recognize and resist this development, freedom and prosperity for all Americans will continue to deteriorate. All liberties in America today are under siege. It didn't happen overnight. It took many years of neglect for our liberties to be given away so casually for a promise of security from the politicians. The tragic part is that the more security was promised - physical and economic - the less liberty was protected. With cradle-to-grave welfare protecting all citizens from any mistakes and a perpetual global war on terrorism, which a majority of Americans were convinced was absolutely necessary for our survival, our security and prosperity has been sacrificed. It was all based on lies and ignorance. Many came to believe that their best interests were served by giving up a little freedom now and then to gain a better life. The trap was set. At the beginning of a cycle that systematically undermines liberty with delusions of easy prosperity, the change may actually seem to be beneficial to a few. But to me that's like excusing embezzlement as a road to leisure and wealth - eventually payment and punishment always come due. One cannot escape the fact that a society's wealth cannot be sustained or increased without work and productive effort. Yes, some criminal elements can benefit for a while, but reality always sets in. Reality is now setting in for America and for that matter for most of the world. The piper will get his due even if "the children" have to suffer. The deception of promising "success" has lasted for quite a while. It was accomplished by ever-increasing taxes, deficits, borrowing, and printing press money. In the meantime the policing powers of the federal government were systematically and significantly expanded. No one cared much, as there seemed to be enough "gravy" for the rich, th
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shared by Paul Merrell on 05 Feb 15
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New Saudi King Tied to Al Qaeda, Bin Laden and Islamic Terrorism Washington's Blog - 0 views
www.washingtonsblog.com/...i-king-tied-911-bin-laden.html
war & peace Saudis King-Salman terrorists™
shared by Paul Merrell on 05 Feb 15
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We’ve long noted that Saudi Arabia is a huge supporter of terrorism. But the new Saudi king is particularly bad. Investors Business Daily notes: King Salman has a history of funding al-Qaida, and his son has been accused of knowing in advance about the 9/11 attacks. *** Salman once ran a Saudi charity tied to al-Qaida and has been named a defendant in two lawsuits accusing the Saudi royal family of helping the 9/11 terrorists, one of which the U.S. Supreme Court recently let move forward after years of being blocked by the State Department and the well-funded Saudi lobby. Plaintiffs have provided an enormous amount of material to source their accusations against Salman. Here’s why his ascension to the throne is not good news, especially as the terrorism threat grows: • Salman once headed the Saudi High Commission for Relief to Bosnia and Herzegovina, which served as a key charitable front for al-Qaida in the Balkans. • According to a United Nations-sponsored investigation, Salman in the 1990s transferred more than $120 million from commission accounts under his control — as well as his own personal accounts — to the Third World Relief Agency, another al-Qaida front and the main pipeline for illegal weapons shipments to al-Qaida fighters in the Balkans.
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• A U.N. audit found that the money was transferred following meetings with Salman, transfers that had no legitimate “humanitarian” purpose. • Former CIA officer Robert Baer has reported that an international raid of Saudi High Commission offices found evidence of terrorist plots against America. • Baer also revealed that Salman “personally approved” distribution of funds from the International Islamic Relief Organization, which also has provided material support to al-Qaida. • A recent Gulf Institute report says Salman and former Saudi intelligence chief Prince Turki al-Faisal knowingly aided and abetted al-Qaida in the run-up to 9/11. • Salman works closely with Saudi clerics Saleh al-Moghamsy, a radical anti-Semite, and Safar Hawali, a one-time mentor of Osama bin Laden, according to the Washington Free Beacon. • In “Why America Slept,” author Gerald Posner claimed that Salman’s son Ahmed bin Salman also had ties to al-Qaida and even advance knowledge of the Sept. 11, 2001 attacks.
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David Andrew Weinberg provides a superb round-up of Salman’s ties to terrorism and extremism: As former CIA official Bruce Riedel astutely pointed out, Salman was the regime’s lead fundraiser for mujahideen, or Islamic holy warriors, in Afghanistan in the 1980s, as well as for Bosnian Muslims during the Balkan struggles of the 1990s. In essence, he served as Saudi Arabia’s financial point man for bolstering fundamentalist proxies in war zones abroad. As longtime governor of Riyadh, Salman was often charged with maintaining order and consensus among members of his family. Salman’s half brother King Khalid (who ruled from 1975 to 1982) therefore looked to him early on in the Afghan conflict to use these family contacts for international objectives, appointing Salman to run the fundraising committee that gathered support from the royal family and other Saudis to support the mujahideen against the Soviets. Riedel writes that in this capacity, Salman “work[ed] very closely with the kingdom’s Wahhabi clerical establishment.” Another CIA officer who was stationed in Pakistan in the late 1980s estimates that private Saudi donations during that period reached between $20 million and $25 million every month. And as Rachel Bronson details in her book, Thicker Than Oil: America’s Uneasy Partnership With Saudi Arabia, Salman also helped recruit fighters for Abdul Rasul Sayyaf, an Afghan Salafist fighter who served as a mentor to both Osama bin Laden and 9/11 mastermind Khalid Sheikh Mohammed.
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Reprising this role in Bosnia, Salman was appointed by his full brother and close political ally King Fahd to direct the Saudi High Commission for Relief of Bosnia and Herzegovina (SHC) upon its founding in 1992. Through the SHC, Salman gathered donations from the royal family for Balkan relief, supervising the commission until its until its recent closure in 2011. By 2001, the organization had collected around $600 million — nominally for relief and religious purposes, but money that allegedly also went to facilitating arms shipments, despite a U.N. arms embargo on Bosnia and other Yugoslav successor states from 1991 to 1996. And what kind of supervision did Salman exercise over this international commission? In 2001, NATO forces raided the SHC’s Sarajevo offices, discovering a treasure trove of terrorist materials: before-and-after photographs of al Qaeda attacks, instructions on how to fake U.S. State Department badges, and maps marked to highlight government buildings across Washington. The Sarajevo raid was not the first piece of evidence that the SHC’s work went far beyond humanitarian aid. Between 1992 and 1995, European officials tracked roughly $120 million in donations from Salman’s personal bank accounts and from the SHC to a Vienna-based Bosnian aid organization named the Third World Relief Agency (TWRA). Although the organization claimed to be focused on providing humanitarian relief, Western intelligence agencies estimated that the TWRA actually spent a majority of its funds arming fighters aligned with the Bosnian government.
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A defector from al Qaeda called to testify before the United Nations, and who gave a deposition for lawyers representing the families of 9/11 victims, alleged that both Salman’s SHC and the TWRA provided essential support to al Qaeda in Bosnia, including to his 107-man combat unit. In a deposition related to the 9/11 case, he stated that the SHC “participated extensively in supporting al Qaida operations in Bosnia” and that the TWRA “financed, and otherwise supported” the terrorist group’s fighters. The SHC’s connection to terrorist groups has long been scrutinized by U.S. intelligence officials as well. The U.S. government’s Joint Task Force Guantanamo once included the Saudi High Commission on its list of suspected “terrorist and terrorist support entities.” The Defense Intelligence Agency also once accused the Saudi High Commission of shipping both aid and weapons to Mohamed Farrah Aidid, the al Qaeda-linked Somali warlord depicted as a villain in the movie Black Hawk Down. Somalia was subject to a United Nations arms embargo starting in January 1992. *** The board of trustees for the Prince Salman Youth Center, which Salman himself chairs, today includes Saleh Abdullah Kamel, a Saudi billionaire whose name showed up on a purported list of al Qaeda’s earliest supporters known as the “golden chain.” (The Wall Street Journal reported that Kamel “denies supporting terror.”) But as the United States sought to shut down Saudi charities with ties to terrorism in the aftermath of the 9/11 attacks, Kamel and Salman both condemned the effort as an anti-Islamic witch hunt.
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In 1995, US aid worker William Jefferson is killed in Bosnia. One of the likely suspects, Ahmed Zuhair Handala, is linked to the SHC. He also is let go, despite evidence linking him to massacres of civilians in Bosnia. [Schindler, 2007, pp. 263-264] In 1997, a Croatian apartment building is bombed, and Handala and two other SHC employees are suspected of the bombing. They escape, but Handala will be captured after 9/11 and sent to Guantanamo prison. [Schindler, 2007, pp. 266] In 1997, SHC employee Saber Lahmar is arrested for plotting to blow up the US embassy in Saravejo. He is convicted, but pardoned and released by the Bosnian government two years later. He will be arrested again in 2002 for involvement in an al-Qaeda plot in Bosnia and sent to Guantanamo prison (see January 18, 2002). By 1996, NSA wiretaps reveal that Prince Salman is funding Islamic militants using charity fronts (Between 1994 and July 1996).
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History Commons adds important details: By 1994, if not earlier, the NSA is collecting electronic intercepts of conversations between Saudi Arabian royal family members. Journalist Seymour Hersh will later write, “according to an official with knowledge of their contents, the intercepts show that the Saudi government, working through Prince Salman [bin Abdul Aziz], contributed millions to charities that, in turn, relayed the money to fundamentalists. ‘We knew that Salman was supporting all of the causes,’ the official told me.” By July 1996 or soon after, US intelligence “had more than enough raw intelligence to conclude… bin Laden [was] receiving money from prominent Saudis.” [Hersh, 2004, pp. 324, 329-330] One such alleged charity front linked to Salman is the Saudi High Commission in Bosnia (see 1996 and After). Prince Salman has long been the governor of Riyadh province. At the time, he is considered to be about fourth in line to be king of Saudi Arabia. His son Prince Ahmed bin Salman will later be accused of having connections with al-Qaeda leader Abu Zubaida (see Early April 2002). [PBS, 10/4/2004] It appears this surveillance of Saudi royals will come to an end in early 2001 (see (February-March 2001)).
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Author Roland Jacquard will later claim that in 1996, al-Qaeda revives its militant network in Bosnia in the wake of the Bosnian war and uses the Saudi High Commission (SHC) as its main charity front to do so. [Jacquard, 2002, pp. 69] This charity was founded in 1993 by Saudi Prince Salman bin Abdul-Aziz and is so closely linked to and funded by the Saudi government that a US judge will later render it immune to a 9/11-related lawsuit after concluding that it is an organ of the Saudi government. [New York Law Journal, 9/28/2005] In 1994, British aid worker Paul Goodall is killed in Bosnia execution-style by multiple shots to the back of the head. A SHC employee, Abdul Hadi al-Gahtani, is arrested for the murder and admits the gun used was his, but the Bosnian government lets him go without a trial. Al-Gahtani will later be killed fighting with al-Qaeda and the Taliban in Afghanistan. [Schindler, 2007, pp. 143-144; Schindler is a professor at the U.S. Army War College] In 1995, the Bosnian Ministry of Finance raids SHC’s offices and discovers documents that show SHC is “clearly a front for radical and terrorism-related activities.” [Burr and Collins, 2006, pp. 145]
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In November 2002, Prince Salman patronized a fundraising gala for three Saudi charities under investigation by Washington: the International Islamic Relief Organization, al-Haramain Foundation, and the World Assembly of Muslim Youth. Since 9/11, all three organizations have had branches shuttered or sanctioned over allegations of financially supporting terrorism. That same month, Salman cited his experience on the boards of charitable societies, asserting that “it is not the responsibility of the kingdom” if others exploit Saudi donations for terrorism. *** The new king has also embraced Saudi cleric Saleh al-Maghamsi, an Islamic supremacist who declared in 2012 that Osama bin Laden had more “sanctity and honor in the eyes of Allah,” simply for being a Muslim, than “Jews, Christians, Zoroastrians, apostates, and atheists,” whom he described by nature as “infidels.” That didn’t put an end to Salman’s ties to Maghamsi, however. The new Saudi king recently served as head of the supervisory board for a Medina research center directed by Maghamsi. A year after Maghamsi’s offensive comments, Salman sponsored and attended a large cultural festival organized by the preacher. Maghamsi also advises two of Salman’s sons ….
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A 1996 CIA report mentions, “We continue to have evidence that even high ranking members of the collecting or monitoring agencies in Saudi Arabia, Kuwait, and Pakistan – such as the Saudi High Commission – are involved in illicit activities, including support for terrorists” (see January 1996). Jacquard claims that most of the leadership of the SHC supports bin Laden. The SHC, while participating in some legitimate charitable functions, uses its cover to ship illicit goods, drugs, and weapons in and out of Bosnia. In May 1997, a French military report concludes: ”(T)he Saudi High Commission, under cover of humanitarian aid, is helping to foster the lasting Islamization of Bosnia by acting on the youth of the country. The successful conclusion of this plan would provide Islamic fundamentalism with a perfectly positioned platform in Europe and would provide cover for members of the bin Laden organization.” [Jacquard, 2002, pp. 69-71] However, the US will take no action until shortly after 9/11, when it will lead a raid on the SHC’s Bosnia offices. Incriminating documents will be found, including information on how to counterfeit US State Department ID badges, and handwritten notes about meetings with bin Laden. Evidence of a planned attack using crop duster planes is found as well. [Schindler, 2007, pp. 129, 284]
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shared by Paul Merrell on 13 Jul 14
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"Crisis At The Border" Is Yet Another Example Of "Blowback." - 0 views
www.informationclearinghouse.info/article39068.htm
war & peace U.S.-foreign-policy immigration Honduras coup El-Salvador Guatemala
shared by Paul Merrell on 13 Jul 14
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If you’re reading this, you probably follow the news. So you’ve probably heard of the latest iteration of the “crisis at the border”: tens of thousands of children, many of them unaccompanied by an adult, crossing the desert from Mexico into the United States, where they surrender to the Border Patrol in hope of being allowed to remain here permanently. Immigration and Customs Enforcement’s detention and hearing system has been overwhelmed by the surge of children and, in some cases, their parents. The Obama Administration has asked Congress to approve new funding to speed up processing and deportations of these illegal immigrants. Even if you’ve followed this story closely, you probably haven’t heard the depressing backstory — the reason so many Central Americans are sending their children on a dangerous thousand-mile journey up the spine of Mexico, where they ride atop freight trains, endure shakedowns by corrupt police and face rapists, bandits and other predators. (For a sense of what it’s like, check out the excellent 2009 film “Sin Nombre.”) NPR and other mainstream news outlets are parroting the White House, which blames unscrupulous “coyotes” (human smugglers) for “lying to parents, telling them that if they put their kids in the hands of traffickers and get to the United States that they will be able to stay.” True: the coyotes are saying that in order to gin up business. Also true: U.S. law has changed, and many of these kids have a strong legal case for asylum. Unfortunately, U.S. officials are ignoring the law.
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The sad truth is that this “crisis at the border” is yet another example of “blowback.” Blowback is an unintended negative consequence of U.S. political, military and/or economic intervention overseas — when something we did in the past comes back to bite us in the ass. 9/11 is the classic example; arming and funding radical Islamists in the Middle East and South Asia who were less grateful for our help than angry at the U.S.’ simultaneous backing for oppressive governments (The House of Saud, Saddam, Assad, etc.) in the region. More recent cases include U.S. support for Islamist insurgents in Libya and Syria, which destabilized both countries and led to the murders of U.S. consular officials in Benghazi, and the rise of ISIS, the guerilla army that imperils the U.S.-backed Maliki regime in Baghdad, respectively. Confusing the issue for casual American news consumers is that the current border crisis doesn’t involve the usual Mexicans traveling north in search of work. Instead, we’re talking about people from Central American nations devastated by a century of American colonialism and imperialism, much of that intervention surprisingly recent. Central American refugees are merely transiting through Mexico.
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“The unaccompanied children crossing the border into the United States are leaving behind mainly three Central American countries, Honduras, El Salvador and Guatemala. The first two are among the world’s most violent and all three have deep poverty, according to a Pew Research report based on Department of Homeland Security (DHS) information,” reports NBC News. “El Salvador ranked second in terms of homicides in Latin America in 2011, and it is still high on the list. Honduras, Guatemala and El Salvador are among the poorest nations in Latin America. Thirty percent of Hondurans, 17 percent of Salvadorans and 26 percent of Guatemalans live on less than $2 a day.” The fact that Honduras is the biggest source of the exodus jumped out at me. That’s because, in 2009, the United States government — under President Obama — tacitly supported a military coup that overthrew the democratically elected president of Honduras. “Washington has a very close relationship with the Honduran military, which goes back decades,” The Guardian noted at the time. “During the 1980s, the US used bases in Honduras to train and arm the Contras, Nicaraguan paramilitaries who became known for their atrocities in their war against the Sandinista government in neighbouring Nicaragua.”
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Honduras wasn’t paradise under President Manuel Zelaya. Since the coup, however, the country has entered a downward death spiral of drug-related bloodshed and political revenge killings that crashed the economy, brought an end to law, order and civil society, and now has some analysts calling it a “failed state” along the lines of Somalia and Afghanistan during the 1990s. “Zelaya’s overthrow created a vacuum in security in which military and police were now focused more on political protest, and also led to a freeze in international aid that markedly worsened socio-economic conditions,” Mark Ungar, professor of political science at Brooklyn College and the City University of New York, told The International Business Times. “The 2009 coup, asserts [Tulane] professor Aaron Schneider, gave the Honduran military more political and economic leverage, at the same time as the state and political elites lost their legitimacy, resources and the capacity to govern large parts of the country.” El Salvador and Guatemala, also narcostates devastated by decades of U.S. support for oppressive, corrupt right-wing dictatorships, are suffering similar conditions.
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Talk about brass! The United States does it everything it can to screw up Central America — and then acts surprised when desperate people show up at its front gate trying to escape the (U.S.-caused) carnage. Letting the kids stay — along with their families — is less than the least we could do.
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Vodafone-Linked Company Aided British Mass Surveillance - The Intercept - 0 views
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They flow deep underneath the Atlantic Ocean and into the United Kingdom below the golden sands of idyllic beaches. But the internet cables that come ashore at the coast of Cornwall, England, are not just used to connect the country with the rest of the world. According to new reports based on documents from National Security Agency whistleblower Edward Snowden, the cables have become an integral part of the global mass surveillance system operated by the British spy agency Government Communications Headquarters, intimately assisted by a company now owned by Vodafone, the world’s third largest cellphone network provider.
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The latest details about the extent of the spying were revealed on Thursday by the British Channel 4 News, the German newspaper Süddeutsche Zeitung, and the German broadcaster WDR, who worked in partnership with Intercept founding editor Laura Poitras. The Intercept obtained a preview of the revelations in advance of their publication. According to the reports, British telecommunications firms have helped GCHQ dramatically scale-up the volume of internet data it collects from undersea cables. In the five years leading up to 2012, there was a 7,000-fold increase in the amount of data the agency was sweeping up, with its computers monitoring some 46 billion private communications “events” every day, according to documents cited in the reports. The data swept up from the cables would include content from emails, online messages, browsing sessions, and calls made using internet chat tools.
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British telecommunications company Cable & Wireless played a leading role in the secret cable tapping operation, according to the reports, and the collaboration appears to have gone further than simply complying with the law in helping implement the surveillance. The company provided GCHQ with updates on opportunities it could give the agency to tap into internet traffic, and in February 2009 a GCHQ employee was assigned to work within Cable & Wireless in a “full-time project management” role. The British government paid Cable & Wireless more than £5 million ($9 million) of taxpayers’ money as part of an annual lease for GCHQ to access the cables. The agency described the company a “partner” and designated it the codename Gerontic.
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According to the reports, Cable & Wireless also appears to have helped GCHQ obtain data from a rival foreign communications company, India’s Reliance Communications, enabling the spies to sweep up communications sent by millions of internet users worldwide through a Reliance-owned cable that stretches from England across Asia and the Middle East. This so-called “access point” for GCHQ was named Nigella and located near an agency surveillance base in Bude, Cornwall (pictured above). Reliance did not respond to a request for comment. In July 2012, the multinational phone company Vodafone bought Cable & Wireless for about $1.5 billion. The documents indicate that the Nigella surveillance access point remained active as of April 2013. Vodafone said in a statement that it complies with the law and does not give “direct access” to its cables. The company says it is compelled to provide certain access to data based on warrants issued by the government.
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Swimming with the Sharks: Goldman Sachs, School Districts, and Capital Appreciation Bon... - 0 views
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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.
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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%).
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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.”
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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:
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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.
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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.
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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.
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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.
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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.
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One thing that does single the state out is that North Dakota alone has its own depository bank.
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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.
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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."