McAfee-Owned Company had Access to Hillary Clinton’s Classified Emails
By Steve Straehley | AllGov | March 23, 2015
Hillary Clinton’s use of a private email account gave a private company—and potentially others—access to secret State Department information, according to a published report.
Marc Perkel at Dvorak Uncensored wrote that Clinton used a commercial spam filtering service, MxLogic, now owned by McAfee, to monitor emails coming into her account. To be able to filter out spam, MxLogic had to be able to read the emails. Thus, anyone with access to MxLogic’s system, which could include someone from outside the company, could read emails meant for Clinton. Those emails would include communications coming from the White House and foreign governments.
“So – for example – if I’m a Russian spy, ISIS, North Korea, or Fox News, or a 14-year-old hacker, all I have to do is bribe someone at McAfee or hack their work login, and they get to read all the email of the Secretary of State,” Perkel wrote.
Clinton even has web mail available, so that anyone with internet access can try hacking into her account.
Another potential problem uncovered by Perkel involves Clinton’s email server itself. Perkel was able to run a security test on the server and it came back with a “B” grade, which isn’t what one wants to see when dealing with top-secret communications.
“The system… had numerous safeguards,” Clinton said in her recent press conference. “It was on property guarded by the Secret Service and there were no security breaches. So I think that the use of that server… certainly proved to be effective and secure.” But Perkel begs to disagree. He said it’s likely the server is in fact not in Clinton’s house or office, which are guarded by the Secret Service, but rather in a more vulnerable commercial data center.
To Learn More:
Spam Filtering Service Had Access to Clinton Classified Emails (by Marc Perkel, Dvorak Uncensored )
Did Spam Filtering Service Have Full Access to Clinton Emails (Peter Van Buren, Ghosts of Tom Joad )
(AP photo)
Ukraine oligarchs ‘top cash contributors’ to Clinton Foundation prior to Kiev crisis
RT | March 22, 2015
From 2009 up to 2013, the year the Ukrainian crisis erupted, the Clinton Foundation received at least $8.6 million from the Victor Pinchuk Foundation, which is headquartered in the Ukrainian capital of Kiev, a new report claims.
That places Ukraine as the leading contributor among foreign donators to the Clinton Foundation.
In 2008, Viktor Pinchuk, who made a fortune in the pipe-building business, pledged a five-year, $29-million commitment to the Clinton Global Initiative, a program that works to train future Ukrainian leaders “to modernize Ukraine.” The Wall Street Journal revealed the donations the fund received from foreigners abroad between 2009-2014 in their report published earlier this week .
Several alumni of the program have already graduated into the ranks of Ukraine’s parliament, while a former Clinton pollster went to work as a lobbyist for Pinchuk at the same time Clinton was working in government.
The Pinchuk foundation said its donations to the Clinton-family organization were designed to make Ukraine “a successful, free, modern country based on European values.” It went on to remark that if Pinchuk was hoping to lobby the US State Department about Ukraine, “this cannot be seen as anything but a good thing,” WSJ quoted it as saying.
However, critics have pointed to some disturbing aspects regarding the donations, including the coincidence of the Ukrainian crisis, which began in November 2013, and the heavy amount of cash donations being made to the Clinton Foundation on behalf of wealthy Ukrainian businessmen. In any case, given that Hillary Clinton appears to be considering a possible run in the next presidential elections, more scrutiny will be devoted to her past work with the charity that bears the Clinton name.
First, as already mentioned, Clinton was serving as the US secretary of state at the time that the donations to her family’s charity were being made. Although it is true that the Clinton Foundation refused donations directly from foreign governments while Clinton was serving in the Obama administration, the door remained wide open to donations from public citizens like Pinchuk, who has advocated on behalf of stronger ties between Ukraine and the European Union.
Political connections in the Pinchuk family run deep. Not only did Viktor Pinchuk serve two terms as a Ukrainian parliamentarian, but his wife is the daughter of former Ukrainian President Leonid Kuchma.
After being introduced to former US President Bill Clinton by Doug Schoen, a political analyst and pollster who has worked for both Clintons, Pinchuk and his wife began making donations to Clinton-family charities, WSJ reported.
During Hillary Clinton’s time at the State Department, Schoen began work as a congressional lobbyist for the Ukrainian oligarch. Schoen defended his lobbying activities, saying there was no connection to Pinchuk’s hefty donations.
“We were not seeking to use any leverage or any connections or anything of the sort relating to the foundation,” he said.
Schoen said he and Viktor Pinchuk met on several occasions with Clinton aides including Melanne Verveer, a Ukrainian-American who holds membership in the influential Council on Foreign Relations, as well as the Trilateral Commission.
The purpose of these meetings, according to Schoen, was to encourage the US government to pressure Ukraine’s former President Viktor Yanukovich to release his jailed predecessor, Yulia Tymoshenko.
Whatever the case may be, Ukraine entered a period of severe crisis on November 21, 2013, when Yanukovich suspended plans for the implementation of an association agreement with the European Union. The announcement triggered mass protests that led to Yanukovich fleeing Kiev on February 22, 2014.
Social unrest eventually consumed the country, as the eastern part of the country attempted to gain more independence from Kiev. Recently, both sides have agreed to a tense ceasefire, hammered out last month in Minsk, Belarus by the leaders of Ukraine, Russia, France, and Germany.
Read more: Putin in film on Crimea: US masterminds behind Ukraine coup, helped train radicals
Mubarak-era Interior Minister Habib al-Adly acquitted of corruption charges in last case against him
Mada Masr | March 19, 2015
Giza Criminal Court acquitted former Interior Minister Habib al-Adly of corruption and squandering public funds worth LE181 million, the state-owned EgyNews website reported on Thursday.
The court also annulled a decision to freeze his personal assets and those of his family.
The Illicit Gains Authority referred Adly to court in 2011, after investigations showed that he had accumulated wealth that was over and above his income. The authority alleged Adly had acquired state-owned lands in 6 October City, despite legal restrictions on the possession of such land by public officials. He used his position to accumulate illicit gains worth over LE6.5 million, the authority claimed.
Investigations also showed that Adly bought four properties for his sons and daughters in violation of the law.
He was previously cleared of similar corruption charges in the “license plates” case, in which Adly and former prime minister Ahmed Nazif were accused of squandering public funds worth LE97 million.
He was also accused of killing January 25 revolution protesters, along with former President Hosni Mubarak and other security aides, but these charges were also dropped. The verdict drew widespread condemnation both locally and internationally, and was hailed as a strong return of Mubarak-era regime officials to public life.
Adly was convicted and sentenced to three years for using central security officers as forced labor on land he owned in 6 October City.
Security sources told Al-Masry Al-Youm that Adly would probably be released from prison, as the period he has already served pending investigations in various cases is equal to the sentence he was given in the “forced labor” case.
If this happens, Adly will be the last Mubarak-era official to be released from prison for corruption charges.
Why marijuana isn’t at the bottom of the list
By Pete Guither | Drug War Rant | March 17, 2015
“Let’s put it in perspective,” Obama said in response. “Young people, I understand this is important to you, but you should be thinking about climate change, the economy, jobs, war and peace, maybe way at the bottom you should be thinking about marijuana.”
That, of course, completely misses the point regarding what “thinking about marijuana” actually is about.
Tom Angell:
“But he should think again about how important this issue is. On average, there’s a marijuana possession arrest in the U.S. about every minute. Billions of dollars are wasted on enforcing prohibition laws that don’t stop anyone from using marijuana but do ruin people’s lives with damaging criminal records.”
Lee Rosenberg (via Twitter):
No, marijuana legalization is not the most important issue for young people to care about, but government incompetence on the issue has a very negative and very real impact on the perception that government is capable of solving more serious problems.
“Thinking about marijuana” is about more than getting high.
It’s about systemic police corruption. It’s about a failed criminal justice system that fuels situations like Ferguson. It’s about tens of thousands dead in Mexico. It’s about failed foreign policy. It’s about using bad laws to control a population and deny them basic rights. It’s about perversion of our Constitution. It’s about financial self-interest trumping science and reason.
Marijuana most definitely isn’t at the bottom of the list.
White House office removing transparency rules
Press TV – March 17, 2015
The White House is exempting one of its key offices from the Freedom of Information Act (FOIA) regulations which allow for the full or partial disclosure of previously undisclosed information and documents controlled by the United States government.
The White House said the move to exempt the Office of Administration from the FOIA rules is consistent with court rulings according to which the office is not subject to the transparency law.
In 2009, a federal appeals court in Washington ruled that the office was exempt from the FOIA but made it obligatory for the White House to archive the e-mails to be released under the Presidential Records Act not until at least five years after the end of the administration.
The White House announces its decision in a notice to be published in Tuesday’s Federal Register, saying it will no longer act in accordance with regulations on how the office complies with FOIA requests based on “well-settled legal interpretations.”
However, the timing of the decision raises a question among transparency advocates amid a national debate over the preservation of Obama administration records.
“It is completely out of step with the president’s supposed commitment to transparency,” said Anne Weismann of the liberal Citizens for Responsibility and Ethics in Washington (CREW). “That is a critical office, especially if you want to know, for example, how the White House is dealing with e-mail.”
White House record-keeping duties like the archiving of e-mails as well as other types of activities are handled by the Office of Administration. The office has been subjected to the FOIA regulations for about three decades.
“This is an office that operated under the FOIA for 30 years, and when it became politically inconvenient, they decided they weren’t subject to the Freedom of Information Act anymore,” said Tom Fitton of the conservative Judicial Watch.
Late in the Bush administration, CREW sued over about 22 million e-mails which were deleted by the White House. At first, the White House began to comply with that request, but then changed its course of action.
“The government made an argument in an effort to throw everything and the kitchen sink into the lawsuit in order to stop the archiving of White House e-mails,” said Tom Blanton, the director of the National Security Archive at George Washington University.
The university has used analogous requests to help foreign policy decisions come to light.
Banks Say “Thanks for the Bailout,” Now We’ll Park our Profits in Overseas Tax Havens
By Steve Straehley | AllGov | March 16, 2015
Giant financial institutions that benefitted from federal bailouts during the depths of the recession have repaid the American people’s largesse by hiding profits overseas to avoid paying their fair share of taxes.
According to a report (pdf) commissioned by Senator Bernie Sanders (I-Vermont), four big banks—Citigroup, Goldman Sachs, Bank of America and JPMorgan Chase—which received massive amounts of money and loan guarantees to keep them afloat in the wake of the financial crisis, park large amounts of money in tax haven nations.
Citigroup got the most help of the four in the bailout, $2.5 trillion. That company has at least 427 offshore divisions where it squirrels away profits out of reach of the American people. Those funds, as of early 2014, totaled $43.8 billion, which would mean $11.7 billion in tax revenue for the United States if they were brought to this country. Citigroup CEO Michael Corbat was rewarded with $1.5 million in salary, $4.5 million in bonuses and $8 million in stock for his work in 2014.
Bank of America received a $1.3 trillion bailout from the American people. In 2014, it had $17 billion in profits stashed offshore, which would bring $4.3 billion in funding for education, infrastructure and other badly needed projects in the United States. Bank of America CEO Brian Moynihan made $1.5 million in salary, $13 million in bonuses and $11.5 million in stock in 2014.
JPMorgan Chase got a $416 billion bailout from American taxpayers. That bank has hidden $28.5 billion overseas which would bring in $6.4 billion to the U.S. Treasury. Chase CEO Jamie Dimon was paid $1.5 million in salary, $7.4 million in bonuses and $11.1 million in company stock in 2014.
Goldman Sachs was the recipient of $814 billion in virtually zero-interest loans, as well as $10 billion from the government. It’s holding $22.5 billion offshore that would bring $4.1 billion back to the American people. Goldman CEO Lloyd Blankfein made $2 million in salary, $7.33 million in bonuses and $7.33 million in stock in 2014.
Of course, banks aren’t the only companies taking advantage of tax havens. Apple, for instance, famously worked it out so two of its subsidiaries have no home country to which to pay taxes. But then Apple didn’t come hat-in-hand begging the American people not to let it go under.
To Learn More:
Legalized Tax Fraud: How Top U.S. Corporations Continue to Profit Through Offshore Tax Havens (by Senator Bernie Sanders, U.S. Senate) (pdf)
Offshore Shell Games (U.S. PIRG) (pdf)
The Bailouts 4 Years Later: Were They Worthwhile Investments? (by Matt Bewig, AllGov )
Quantitative Easing for Whom?
Why the European Central Bank’s Trillion Euro Plan will Only Help Keep the Banks Afloat
By MICHAEL HUDSON and SHARMINI PERIES | CounterPunch | March 13, 2015
SHARMINI PERIES: In an effort to relieve some pressure on the struggling European economies, Mario Draghi, president of the European Central Bank, announced a 1 trillion euro quantitative easing package on Monday. Quantitative easing is an unconventional form of monetary policy where a central bank creates new money electronically to buy financial assets like government bonds. And this process aims to directly increase private-sector spending in the economy and return inflation to target.
Well, what does that mean and what might be wrong with it is our next topic with Michael Hudson. Michael Hudson is a distinguished research professor of economics at the University of Missouri-Kansas City. His two newest books are The Bubble and Beyond and Finance Capitalism and Its Discontents. His upcoming book is titled Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy.
Michael, the Fed and some economists will argue that this is what got the U.S. out of its 2008 financial crisis. In fact, they put several QE measures into place. So what’s wrong with quantitative easing?
MICHAEL HUDSON: Well, the cover story is that it’s supposed to help employment. The pretense is an old model that used to be taught in textbooks a hundred years ago: that banks lend money to companies to invest and build equipment and hire people.
But that’s not what banks do. Banks lend money mainly to transfer ownership of real estate. They also lend money to corporate raiders. They lend money to buy assets. But they don’t lend money for companies to invest in equipment and hire more workers. Just the opposite. When they lend money to corporate raiders to take over companies, the new buyers outsource labor, downsize the work force, and try to squeeze out more work. They also try to grab the pensions.
The Fed was pretty open in what quantitative easing is supposed to do since 2008. It’s supposed to lower the interest rates, which raises bond prices and inflates the stock market. Since 2008 they’ve had the largest monetary inflation history – $4 trillion of quantitative easing by the Fed. But it’s gone via the banks into the stock and bond market.
What has this done for the economy as a whole? For starters, it’s obviously helped stock and bond holders get richer. And who are they? They’re the 1 percent and the 10 percent.
People are wringing their hands and saying, why isn’t the economy getting richer? Why is it that since 2008, economic inequality and the distribution of wealth have worsened instead of gotten closer together? Well, it’s largely because of quantitative easing. It’s because quantitative easing has increased the value of the stocks and the bonds that are held mainly by the 1 percent or the 10 percent hold. This hasn’t helped the economy because the Fed is really concerned with its constituency, which are the banks.
Quantitative easing hasn’t helped one class of investors in particular: pension funds. It’s done just the opposite. Pension funds made the assumption a few years ago that in order to break even with the rate of contributions that corporations, states and municipalities are paying, they have to make eight percent or eight and a half percent a year as a rate of return. But quantitative easing lowers the interest rate.
Today’s lower interest rates have made pension funds desperate. The risk-free rate of return is less than 1 percent on short-term Treasury bills. If you buy longer-term treasuries you can make 2 percent, but then if the interest rates ever go up, you’re going to take a loss as the bond price declines. So pension funds have said, “We’re desperate; what are we going to do?”
They’ve turned their money over to Wall Street money managers and hedge funds. The hedge funds take a huge rake off of fees to begin with. But even worse, when hedge funds and the big banks – Goldman Sachs, Citibank – see a pension fund manager coming through the door, they think, “How can I take what’s in his pocket and put it in mine?” So they rip them off. That is why there are so many big lawsuits against Wall Street for mismanaging pension fund money.
To summarize, the effect of the quantitative easing has been to make pension funds desperate, and to support real estate prices, as if higher costs to obtain housing will help recovery. It doesn’t help recovery, because to the extent that quantitative easing supports a re-inflation of housing prices, new homeowners have to pay even more of their income to the banks as mortgage interest. That means they have less money to pay for goods and services, so markets for goods and services continue to shrink.
What the quantitative easing has not been used for is what was promised in 2008. Before President Obama won the election and took office, Congress said that the TARP bailout and TALF were supposed to go for debt reduction. Some was to write down mortgages, so that people could afford to stay in their homes rather than the millions of home owners that have been foreclosed on and thrown out. But even before Obama came into office, Hank Paulson, the Secretary of the Treasury, told Democrats in Congress, yes, we’re willing to write down debts. But as Barney Frank explained in exasperation, Obama said no, he’s not going to do that. Obama ended up supporting the banks. So almost none of the TARP bailout money has been used for debt write-downs.
The same phenomenon is happening in Europe.
PERIES: So, Michael, what’s wrong with what the ECB has announced in terms of a trillion euros worth of quantitative easing for Europe?
HUDSON: They head of the European Central Bank, Mario Draghi, has said that he’ll do whatever it takes to keep banks afloat. He doesn’t say that he’ll do whatever it takes to help economic recovery, or to help labor more. The ECB’s job is to help banks make more money.
Draghi was vice chairman of Goldman Sachs during 2002 to 2005. His view is that of Wall Street. It’s not a vantage point helping labor or helping economies grow. So it’s not surprising that the trillion euros of new money that the eurozone’s central bank is creating hasn’t gone to help Greece, for instance, survive. It hasn’t gone to help Greece, Spain, Italy, or Portugal get out of depression by fueling government spending. It’s simply been given away to the banks to buy bonds and stocks, including buying American stocks and bonds.
Behind this policy is the trickle-down theory that if you can make the financial sector richer, if you can make the one percent and the 10 percent richer, it’s all going to trickle down. This is the view of Paul Krugman, and it’s the view of the advisers that Obama has had. But instead of trickling down, the stock and bond price gains by the 1% and 10% drive a wedge in the economy, by increasing the value of stocks and bonds and real estate and wealth against labor. So quantitative easing is largely behind the fact that the distribution of wealth has become worse rather than better since 2008.
PERIES: One of the things that has happened in Europe that you wrote to me actually in an email was the disappearing central banks’ role in stimulating economies. Why is this an issue?
HUDSON: Central banks originally were designed to monetize government deficits. Governments are supposed to spend money into the economy, because that helps economies grow. But in Europe the Lisbon agreements say governments can’t run a deficit more than 3 percent of national income.
Furthermore, the role of the European Central Bank is not to give a penny to governments. They say that if you give a penny to government, you’ll have hyperinflation like you had in Weimar. So the central bank can only give money to banks – to invest in stocks and bonds. But the ECB won’t buy fresh bonds to finance new government spending. The result of this policy of not funding government deficits is that if the economy is to grow, it has to be entirely dependent on commercial banks for credit.
We had this situation in the United States in the last few years of the Clinton administration when the United States actually ran a budget surplus instead of a deficit. Now, how do you think the United States could grow when there’s a budget surplus sucking money out of the economy?
The answer is that commercial banks and bondholders have to supply the money. But the banks only supplied money in the form of junk mortgages and other forms of an economic bubble, such as takeover loans and a stock market bubble.
The interest of banks is not to help economies grow; it’s to extract interest from the economy. The financial sector uses part of its rising wealth to lobby for privatization sell-offs. The problem with this is that when you privatize a public utility, you give away a monopoly – and if you deregulate the economy, you let the monopoly set up tollbooths over the economy, for toll roads, communications or whatever is being privatized.
The ECB is telling Greece to privatize to raise the money to pay its bondholders, the ECB and IMF. So you have quantitative easing going hand-in-hand with the insistence on privatization. The result is debt deflation as the economy is forced to depend more and more on banks for the money to grow, instead of on government spending into the economy. You’re having the governments not being able to spend on infrastructure, letting it fall apart, as is happening with bridges and tunnels in the United States.
The next step is for the government to say, “I’m sorry, the central bank doesn’t have enough money to help us build new infrastructure. So we’ve got to sell it off to private investors who do have the money.” The next thing you know, you have the economy ending up looking like Chicago. That city sold off its sidewalks and its parking meters to Goldman Sachs and to other Wall Street firms. All of a sudden the prices of parking, driving, and living in Chicago went way, way up instead of lowering the costs as privatization promised.
You have the same phenomenon here that England suffered under Margaret Thatcher: costs for hitherto public services go up. Transportation costs go way up. Road costs go up. Communications, internet costs, telephone costs, everything that is privatized goes way up. Financialization leads to a rent-extractive, almost neo-feudal economy.
In that sense, quantitative easing and the refusal of central banks to fund governments (except to pay bondholders and bail out commercial banks) is a new kind of class war. It’s not the old kind of class war, which was between employers and their workforce over what wages will be. It’s by the financial sector trying to take over the economy, and especially to take over the public sector, to take over the public domain, to take over public utilities and whatever assets a government has. If governments cannot borrow from central banks, they have to begin selling off property.
PERIES: Michael, this is exactly what’s happening in Greece right now. The SYRIZA government is somewhat forced to continue privatization as a part of the agreement of the loans that they have been given by European banks. What could they do in this situation?
HUDSON: This is really a scandal, because most privatizations are corrupt insider dealings. The SYRIZA Party came in and said, wait a minute, the privatizations that have been done are by governmental officials to their own cronies at a giveaway price. How can we balance the budget if we’re giving away the public utilities instead of getting a fair price for them?
The European Central Bank said, no, you have to give away privatization to cronies at pennies on the dollar just like Russia did under Yeltsin, just like the United States did with the railroad giveaways of the 19th century.
Remember, the American privatization to the railroad barons and their financial backers created essentially the ruling class of the 20th century. It created the American stock market. The same thing is happening in Greece. It’s being told to continue the former politicians’ drive to endow a new oligarchy, a new kind of a feudal monopoly lord, by these privatization giveaways. The ECB says that if you don’t do that, we’re going to bankrupt the banking system.
Yanis Varoufakis went back to the party congress in Parliament and asked whether they would approve this. The left wing in Greece has said, no, we won’t approve the giveaways.
The pretense is that privatization is to make money, but the European Central Bank is saying, no, you can’t make money; you have to give it away to our cronies. It’s all one happy financial family. This is escalating financial warfare.
I can assure you that neither Varoufakis nor SYRIZA has any interest in this kind of privatization giveaway. It’s trying to figure out some way of perhaps prosecuting the cronies for bribery, for internal connections, or figuring out some way of legally stopping the rotten policies that they’re told to follow by the European Central Bank – which isn’t giving a single euro to help Greece get over the economic depression that debt deflation has brought on. The euros are only given to the financial sector, basically to help declare war on the Greek government, the Spanish government, the Italian government.
This financial warfare is trying to achieve the same thing that military warfare did in the past. It’s aim is to grab the land, to grab control of the public infrastructure, to grab control of governments themselves. But it’s doing it financially rather than militarily.
PERIES: Right. The SYRIZA Party last week did agree to the conditions of privatization, that they would not roll back on the existing agreements that had been made by previous government. They agreed to not roll back on ones that are underway, and that they’re actually not even averse to privatization as a statement by Yanis Varoufakis. What does all this mean for Greece?
HUDSON: The financial gun was put to their head. If they wouldn’t have said that, there would have been a total breakdown, and the European Central Bank would have tried to bankrupt the Greek banks. So he didn’t have much of a choice. Everything that Varoufakis has written, and all that the political leader of SYRIZA has said, has been exactly the opposite. But they had to give lip service to what they were told to do, and any agreement that’s made has to be ratified by Parliament. So, what they’ve said is, okay, we’re going to play good cop, bad cop. We’ll be the good cops with you, and let Parliament and our left wing be the bad cops and say that we’re not going to stand for this.
Confidence in Congress, Supreme Court, Organized Religion, Press and TV Drop to Record Lows
By Noel Brinkerhoff | AllGov | March 14, 2015
Americans are having a tough time these days feeling really good about many of the country’s institutions.
Let’s start with Congress. A mere 5% of Americans say they have a great deal of confidence in the legislative branch of government, according to General Social Survey conducted by the Associated Press and the NORC Center for Public Affairs Research at the University of Chicago. More than half of respondents said they have hardly any confidence at all in Congress, and 40% only have some confidence in it.
The Supreme Court, according to the survey, reached a new all-time low with only 23% having a great deal of confidence. Twenty percent have hardly any confidence in the high court, and 54% have some confidence in it.
Things aren’t much better for the executive branch. Only 11% of adults expressed a great deal of confidence in it, only one point above the low of 10% back in 1996. A record-high 44% said they have hardly any confidence at all in the executive branch.
Outside of government, things are kind of dreary as well. Only 19% of Americans told the survey they have a great deal of confidence in organized religion, which matched an all-time low set in 2002.
People aren’t feeling it for the media or television, either. Seven percent expressed a great deal of confidence in the press, while 44% said they have hardly any confidence in it. When it comes to television, only 10% have a great deal of confidence, and 41% say they have hardly any confidence.
To Learn More:
Confidence in Institutions: Trends in Americans’ Attitudes toward Government, Media, and Business (Associated Press -NORC Center for Public Affairs Research)
Gallup Poll Finds Confidence in Congress Lowest of Any Institution Ever (by Steve Straehley, AllGov )
‘New IMF loan to Ukraine will go down the drain’
RT | March 11, 2015
President Poroshenko’s government is far more corrupt and less efficient than the previous one, according to Martin Sieff, columnist for the Baltimore Post-Examiner. It’s like a black hole, the more money you pour in the less you will have, he added.
The International Monetary Fund (IMF) is to decide Wednesday whether to give a $17.5 billion bailout package to Ukraine. The Ukrainian parliament has already passed a series of austerity reforms to cut pensions and increase taxes in order to meet the creditors’ conditions, but more changes are going to be needed to gain this financial aid.
RT: About $4.6 billion in credit was extended to Ukraine in 2014, but its economic performance has scarcely improved. Does that mean the aid had no effect?
Martin Sieff: Pretty much yes, it does. It had the effect on keeping Ukraine afloat in the short-term. But this is an unconstitutional government in Ukraine which was really established by a violent coup in Kiev last year which has waged an aggressive war of repression against two secessionist provinces of its own country, which doesn’t have any real social contract with its own people. Its efforts to conscript large numbers of forces for the regular army have been met with peaceful but very clear resistance. This is a very weak disorganized government, it’s a black hole. The more money you pour in, the less effect you will have. You can keep it stable for a year or two but no longer than that.
RT: The IMF has agreed on a new $17.5 billion lifeline to Ukraine. Do you think that will be enough to stabilize the country’s economy even if fully implemented?
MS: The aid went at least in theory to what it was supposed to, but no doubt there was a great deal of corruption. It’s ironic that the government of President Yanukovich was accused of corruption and incompetence. This government is far more corrupt than the previous government was and it’s infinitely more incompetent. So simply money leaches away, but the real problem is the lack of credibility of governance. This government is even purging its civil service of anyone remotely accused or suspected of being efficient and loyal to President Yanukovich and his predecessors. You cannot have an efficient and credible government under these circumstances.
RT: The IMF is requesting a package of economic and political reforms to be carried out when providing financial assistance to any country. Are we seeing it carried out in Ukraine at least judging by its economic performance?
MS: No, no way. First of all, there is still unrest and violence in the two eastern provinces and spreading into other parts of the country. The security conflict and the conflict with Russia have to be settled first by this government. And they are not yet ready to settle it on terms that would be acceptable and reassuring to Moscow, but that has to be resolved first. Secondly, we saw even last year President Yanukovich broke off his negotiations with the EU, but he recognized that the terms under which the EU was ready to grant association to Ukraine would be disastrous and ruinous for the Ukrainian economy and the Ukrainian people. A year ago, the EU didn’t have the resources by itself to lift up even a peaceful Ukraine under democratically elected governance. The prospects of doing that now under President Poroshenko and his war-government, his war junta are very much less. So this would be $17 billion down the drain. You know they are all saying from Washington DC, I’m paraphrasing a little “$17 billion here, $17 billion there and soon you are talking about real money”.
RT: When signing the IMF program Ukraine makes certain financial obligations, do you think they could be committed at all in the current state of its economy or is it going to be a black hole of international aid?
MS: There is no question about that. This is very unwise economic policy that has a political motivation. The EU itself and the US government both plunged in recklessly to topple the Yanukovich government last year and to support President Poroshenko. And now we have the dominant mythology, the dominant narrative in Washington, and in Brussels, and in London is that this is “a stable democratic government which is being under threat from evil totalitarian forces to the East.” That is not the truth even remotely, but that is almost universally believed by policymakers in London and Washington and many of them in Brussels and therefore there is a political motivation to try and prop up Ukraine. But you can’t fix what’s already broken. You are pouring good money after bad. Ukraine’s problems first of all have to be solved in the security sphere then they have to be solved in the political sphere restoring the political amity and credibility and the incompetent but nevertheless stable civil service that existed until February 2014 a year ago. It was the EU and the US that broke Ukraine and they cannot fix it now by simply pouring money into a black hole.
Pharmageddon: America’s bitter pill
RT | December 27, 2011
The United States has a passion for pills, being the world’s biggest users of psychotropic drugs, consuming 60 per cent of them. And pharmaceutical firms are keen to keep cashing in on the multibillion-dollar market, even if it costs people’s health.
America is regarded as a country with a prodigious appetite for consumption. Today, a widespread fondness for pharmaceuticals has turned the US into a nation of pill-poppers.
With over $14 billion in annual sales, antipsychotics remain the top-selling therapeutic class of prescription drugs in the US.
Dr. Harriet Fraad believes Big Pharma has manufactured a climate of insanity by manipulating and even creating illness for capital gain.
“One of the things that drives Big Pharma is to find a diagnosis that is very vague, so that everybody can fall into that,” she told RT. “Everybody is sad sometimes. There are good reasons. The point is to market pharmaceuticals. And the advertising strategy is to have vague diagnosis and then find wiggle room so that they apply to everyone.”
The US is the only Western country that allows direct-to-consumer advertising of prescription drugs. For example, an ad for Attention Deficit Hyperactivity Disorder warns that untreated patients will likely end up divorced. Another commercial promises to make you happier, but side-effects may include dry mouth, insomnia, sexual dysfunction, diarrhea, nausea and sleepiness.”
Critics also say Big Pharma uses its financial muscle to ply doctors with gifts, cash kick-backs and research funding in exchange for endorsing or prescribing the latest and most lucrative drugs.
Harriet Fraad says there is a whole network of doctors hustling these drugs.
“If a patient comes in with a knee injury and says, ‘I’m so sad.’ Oh, are you depressed? Hey write a prescription! They’re given out like M&Ms.”
Last year, prescription drug abuse became the number one cause of accidental death, with more than 30,000 Americans overdosing.
For instance, Seroquel, medication for bi-polar disorder, generated $4.4 billion in sales last year.Listing all its side-effects requires 49 seconds of air-time.
The number of children consuming antipsychotic medication has doubled in the past decade. Millions of American adolescents are taking drugs like Adderall, doled out by doctors to treat hyperactivity.
Author of Surviving America’s Depression Epidemic, psychologist Bruce Levine, told RT that, “All these drugs are very similar to illicit or illegal drugs, except they’re more dangerous. Marijuana is a little safer. But kids have no choice.”
Pfizer, America’s most profitable multinational pharmaceutical company makes anti-depressants not only for people, but also for animals. In 2009, the pharmaceutical giant paid $2.3 billion to settle civil and criminal allegations over illegally marketing one of its drugs. It was the largest healthcare fraud settlement and criminal fine in US history.That being said, the fine amounted to less than three weeks of Pfizer’s drug sales.
“The money is so huge that the fines are immaterial. They’re not thinking about the social effects of what they’re doing. They’re thinking about the profits they accrue,” says psychotherapist Harriet Fraad.
The pharmaceutical industry remains the most profitable business in the US. More success and financial gain for the companies will always remain possible as long as more Americans are encouraged to take drugs.
Justice Dept set to charge NJ Senator Menendez with corruption
RT | March 6, 2015
An influential US senator will face federal corruption charges, concluding a two-year investigation into Sen. Robert Menendez (D-New Jersey), which has scrutinized a Florida eye doctor, underage prostitutes and accusations against the Cuban government.
Department of Justice prosecutors accuse Menendez, the senior senator from New Jersey and the ranking member of the Foreign Relations Committee, used his powerful position to advance the business interests of Dr. Salomon Melgen, a close friend and financial benefactor, in exchange for gifts, several media outlets reported Friday afternoon. Attorney General Eric Holder has signed off on the requested charges, according to CNN.
The senator has consistently denied wrongdoing since the investigation became public in 2013.
“As we have said before, we believe all of Senator’s actions have been appropriate and lawful and the facts will ultimately confirm that,” Menendez spokesperson Tricia Enright said in a statement Friday. “Any actions taken by Senator Menendez or his office have been to appropriately address public policy issues and not for any other reason.”
The investigation began in the fall of 2012, when Menendez was running for reelection. A scandal erupted days before the vote, when he was accused of “inappropriate sexual activities with young prostitutes” on a 2010 trip to the Dominican Republic. Conservative news site the Daily Caller broke the story after GOP political operatives set up several Skype interviews with several women in the Dominican Republic who claimed the senator had paid them for sex.
According to the anonymous tip that launched the probe, Melgen provided the underage women, as well as free flights on his private plane, the Washington Post reported. The women later recanted their stories about meeting Menendez on the 2010 trip.
The New Jersey lawmaker vehemently denied that he employed any sex workers in the Dominican, and accused the Cuban government of hatching a plot to derail his political career; as the son of Cuban immigrants, he is one of several key Latinos in Congress aligned against any relaxation of the embargo on the island-nation.
Despite the women changing their stories, the FBI continued to investigate Menendez’s relationship with the Florida opthamologist.
The investigation began to focus on whether the senator intervened on Melgen’s behalf, asking Medicare to change its reimbursement policies that benefited the eye doctor to the tune of $8.9 million, money that he has since repaid, according to Politico.
Melgen was accused of overbilling the Centers for Medicare & Medicaid Services (CMS) for his reimbursement for the drug Lucentis, a costly medication used to treat macular degeneration. During the billing dispute ‒ in 2009 and in 2012 ‒ Menendez urged the government agency to change its policy, which he said he considered to be unfair, the New York Times reported.
”The bottom line is, we raised concerns with CMS over policy and over ambiguities that are difficult for medical providers to understand and to seek a clarification of that and to make sure, in doing so, providers would understand how to attain themselves,” Menendez told the Associated Press in 2013.
In 2013, Menendez paid Melgen back $58,000 in return for the 2010 plane trips, and called his failure to disclose the flights ‒ as required by federal ethics laws ‒ an “oversight.” Along with the flights, the Florida doctor donated heavily to the senator’s campaign coffers, including $700,000 to a Democratic super PAC (political action committee) that spent heavily on Menendez’s 2012 reelection bid.
Prosecutors are also looking into whether the senator illegally advocated for Melgen in the Dominican Republic, where the opthamologist had a government contract for port screening equipment, CNN reported. When the US government was considering donating similar technology to the Caribbean nation, Menendez told both the State Department and the Commerce Department that the Dominican government was trying to get out of a contract with an unnamed American company that authorities there “[didn’t] want to live by.”
Melgen’s relationship with the senator isn’t the only one that might be mentioned in the government’s corruption charges against Menendez. The FBI also investigated his ties to the Isaias family. Brothers Roberto and William were banking magnates in Ecuador when they fled to the US after they were accused of embezzling tens of millions of dollars from the country’s largest bank before it collapsed, Politico reported. The New Jersey lawmaker is accused of illegally helping the brothers gain permanent residency while fighting their extradition cases, according to CNN. Menendez also assisted Roberto’s daughter Estefania with visa problems.
The Isaias family donated $10,000 to Menendez’s 2012 Senate campaign and more than $100,000 to the Democratic Party. The senator served as the chair of the Democratic Senatorial Campaign Committee ‒ the party’s chief fundraiser for upper chamber candidates ‒ from 2009 to 2011.
If Menendez is unable to remain in office due to the corruption charges, it is unclear who might replace him, the Washington Post reported. New Jersey Democrats are focusing on winning the governorship when current Gov. Chris Christie (R) leaves office in 2017, and members of the state’s delegation in the House are not likely to run for the Senate seat.
