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The CIA Does Las Vegas

By Bill Blunden | CounterPunch | August 1, 2014

One evening over drinks in Ethiopia, during his tour as a CIA officer back in the 1960s, John Stockwell expressed reservations about covert operations to a senior fellow officer named Larry Devlin. Stockwell worried that the CIA was infiltrating governments and corrupting leaders to no useful end. Devlin, well-known in spy circles for his work in the Congo, berated Stockwell[i]:

“You’re trying to think like the people in the NSC back in Washington who have the big picture, who know what’s going on in the world, who have all the secret information, and the experience to digest it. If they decide we should have someone in Bujumbura, Burundi, and that person should be you, then you should do your job, and wait until you have more experience, and you work your way up to that point, then you will understand national security, and you can make the big decisions. Now, get to work, and stop, you know, this philosophizing.”

It’s a compelling argument: trust me, I know secrets. In fact it’s the same sort of argument that a federal informant named Hector Xavier Monsegur used to convince an activist named Jeremy Hammond to break into a whole slew of servers belonging to foreign governments[ii]. Monsegur assured Hammond: “Trust me, everything I do serves a purpose.” Hammond didn’t realize that he was actually part of an elaborate intelligence campaign being run by the FBI. Pimped out to other American three-letter agencies as it were.

Trust Me: I’m an Insider

John Stockwell was patient. He stayed on with the CIA and rose through the ranks, ultimately garnering enough clout to sit in on subcommittee meetings of the National Security Council. What he witnessed shocked him. Stockwell saw fat old men like senior ambassador Ed Mulcahy who fell asleep[iii] and petty officials like Henry Kissinger who got into embarrassing spats when someone else sat in their chair.[iv] All the while decisions were made that would kill people.

Quelle surprise! There were no wise men making difficult decisions based on dire threats to national security. Merely bureaucrats in search of enemies whose covert programs created more problems than they solved.

There’s a lesson in this story that resonates very strongly. A security clearance is by no means a guarantee of honesty or integrity. The secrets that spies guard don’t necessarily justify covert programs. Rather the veil of the government’s classification system is often leveraged to marginalize the public, to exclude people from policy making, and conceal questionable activity that would lead to widespread condemnation and social unrest if it came to light.

Past decades offer an endless trail of evidence: Operation Gladio, Operation Mockingbird, Project MKUltra, Operation Wheeler/Wallowa, Watergate, Operation CHAOS, COINTELPRO, Operation Northwoods, P2OG (the Proactive, Preemptive Operations Group), Iran-Contra, etc.

Cryptome’s John Young describes how this dynamic literally unwinds democracy[v]:

“Those with access to secret information cannot honestly partake in public discourse due to the requirement to lie and dissimulate about what is secret information. They can only speak to one another never in public. Similarly those without access to secret information cannot fully debate the issues which affect the nation, including alleged threats promulgated by secret keepers who are forbidden by law to disclose what they know.”

The Parade of Lies

In light of Ed Snowden’s revelations, and the remarkably flat-footed response of our political leaders, society is witnessing a crisis of trust. Time after time we’ve been lied to by ostensibly credible government officials. Not little white lies, but big scandalous ones. Lies that bring into question the pluralistic assumptions about American democracy and suggest the existence of what political analysts from Turkey would call a “Deep State[vi].”

For instance, both former NSA director Keith Alexander and House Intelligence Chair Mike Rogers claimed that NSA mass interception was instrumental in disrupting over 50 terror plots, a claim that dissolved quickly upon closer scrutiny[vii].

Or contemplate an unnamed NSA spokesman who vehemently told the Washington Post that the NSA was not engaged in economic espionage[viii], only to be contradicted by leaked top-secret documents which described how the NSA broke into networks run by the Chinese telecom giant Huawei and made off with the company’s crown jewels (i.e. product source code).

When President Obama scored some air time with Charlie Rose, in soothing tones he calmly explained to viewers that the NSA doesn’t monitor American citizens without a warrant. It’s surprising that POTUS, a man with a background in constitutional law no less, would be unaware of Section 702 of the Foreign Intelligence Surveillance Act (FISA). This legal provision contains a loophole that allows just this sort of warrantless monitoring to transpire[ix]. Never mind Executive Order 12333, which is arguable an even greater threat[x].

More recently, consider Dianne Feinstein’s claim back in March that the CIA had been monitoring a network used by the Senate Intelligence Committee. John Brennan, the CIA director, told her that she was full of it and sanctimoniously replied “when the facts come out on this, I think a lot of people who are claiming that there has been this tremendous sort of spying and monitoring and hacking will be proved wrong[xi].”

Well guess what? It turns out Brennan was on the losing side of that bet. An internal investigation showed that CIA officers had indeed been watching the Senate Committee[xii]. Stop and pause for a moment. This disclosure is a serious warning sign. What, pray tell, do you think happens to the whole notion of checks and balances when the executive branch spies on the other two branches? Do you suppose there are implications for the balance of power?

Damage Control

Faced with this ever expanding dearth of credibility, spies have worked diligently to maintain the appearance of integrity. Specifically, industry conferences like Black Hat and DEF CON have regularly catered to the needs of U.S. Intelligence by serving as platform for the Deep State and its talking points: that Cyberwar is imminent[xiii], that cybercrime represents an existential threat[xiv], and that mass interception is perfectly normal and perfectly healthy[xv].

“If the tariff of security is paid, it will be paid in the coin of privacy. [xvi]”

In these hacker venues high-profile members of the intelligence community like Cofer Black[xvii], Shawn Henry[xviii], Keith Alexander[xix], and Dan Greer[xx] are positioned front and center in keynote slots, as if they were glamorous Hollywood celebrities. While those who value their civil liberties might opine that they should more aptly be treated like pariahs[xxi].

“Time Out” Posturing

One would hope that the gravity of Ed Snowden’s documents would have some impact. Indeed, Jeff Moss, the organizer who currently runs DEF CON and who originally founded Black Hat (and, by the way, currently sits on the Department of Homeland Security’s Advisory Council[xxii]), did attempt to make a symbolic gesture of protest in the summer of 2013. He gently requested that feds call a “time-out” and not attend DEF CON[xxiii].

To grasp the nature of this public relations maneuver is to realize that roughly 70 percent of the intelligence budget is channeled to private sector companies[xxiv]. As Glenn Greenwald observed during the 2014 Polk Award ceremony, as far as the national security state is concerned there is little distinction between the private and public sector[xxv]. Anyone who has peered into the rack space of the data broker industry knows that the NSA is an appendage on a much larger corporate apparatus[xxvi].

So asking federal employees to stay away really doesn’t change much because the driving force behind the surveillance state, the defense industry and its hi-tech offshoots, will swarm Vegas in great numbers as they normally do. Twelve months after Moss calls his halfhearted “time-out,” Black Hat rolls out the red carpet for the Deep State[xxvii], (while the government threatens to clamp down on attendance to conferences by foreign nationals[xxviii]). This is all very telling.

Bill Blunden is an independent investigator whose current areas of inquiry include information security, anti-forensics, and institutional analysis. He is the author of several books, including The Rootkit Arsenal , and Behold a Pale Farce: Cyberwar, Threat Inflation, and the Malware-Industrial Complex. Bill is the lead investigator at Below Gotham Labs.

Notes

[i] John Stockwell, THE SECRET WARS OF THE CIA: part I, lecture given in October, 1987,

http://www.thirdworldtraveler.com/Stockwell/StockwellCIA87_1.html

[ii] Mark Mazzetti, “F.B.I. Informant Is Tied to Cyberattacks Abroad,” New York Times, April 23, 2014, http://www.nytimes.com/2014/04/24/world/fbi-informant-is-tied-to-cyberattacks-abroad.html

[iii] John Stockwell, THE SECRET WARS OF THE CIA: part I, lecture given in October, 1987,

http://www.thirdworldtraveler.com/Stockwell/StockwellCIA87_1.html

[iv] John Stockwell, The Praetorian Guard: The U.S. Role in the New World Order, South End Press, July 1, 1999.

[v] John Young, “Wall Street Journal Secrecy,” Cryptome, August 22, 2014, http://cryptome.org/0002/wsj-secrecy.htm

[vi] Peter Dale Scott, “The Deep State and the Wall Street Overworld”, Asia-Pacific Journal: Japan Focus, March 10, 2014, http://japanfocus.org/-Peter_Dale-Scott/4090

[vii] Cindy Cohn and Nadia Kayyali, “The Top 5 Claims That Defenders of the NSA Have to Stop Making to Remain Credible,” Electronic Frontier Foundation, June 2, 2013, https://www.eff.org/deeplinks/2014/06/top-5-claims-defenders-nsa-have-stop-making-remain-credible

[viii] Barton Gellman and Ellen Nakashima, “, U.S. spy agencies mounted 231 offensive cyber-operations in 2011, documents show” Washington Post, August 30, 2013

[ix] Nadia Kayyali, “The Way the NSA Uses Section 702 is Deeply Troubling. Here’s Why,” Electronic Frontier Foundation, May 7, 2014, https://www.eff.org/deeplinks/2014/05/way-nsa-uses-section-702-deeply-troubling-heres-why

[x] John Napier Tye, “Meet Executive Order 12333: The Reagan rule that lets the NSA spy on Americans,” Washington Post, July 18, 2014, http://www.washingtonpost.com/opinions/meet-executive-order-12333-the-reagan-rule-that-lets-the-nsa-spy-on-americans/2014/07/18/93d2ac22-0b93-11e4-b8e5-d0de80767fc2_story.html

[xi] Mark Mazzetti And Jonathan Weisman, “Conflict Erupts in Public Rebuke on C.I.A. Inquiry,” New York Times, March 11, 2014, http://www.nytimes.com/2014/03/12/us/cia-accused-of-illegally-searching-computers-used-by-senate-committee.html

[xii]Mark Mazzetti, “C.I.A. Admits Penetrating Senate Intelligence Computers,” New York Times, July 31, 2014, http://www.nytimes.com/2014/08/01/world/senate-intelligence-commitee-cia-interrogation-report.html

[xiii] Molly Mulrain, “Former CIA Official: ‘Cyber Will Be Key Component of Any Future Conflict’”, ExecutiveBiz, August 4, 2011, http://blog.executivebiz.com/2011/08/former-cia-official-cyber-will-be-a-key-component-of-any-future-conflict/

[xiv] Gerry Smith, “Cyber-Crimes Pose ‘Existential’ Threat, FBI Warns,” Huffington Post, January 12, 2012, http://www.huffingtonpost.com/2012/01/12/cyber-threats_n_1202026.html

[xv] “U.S. Cyber Command Head General Alexander To Keynote Black Hat USA 2013,” Dark Reading, May 14, 2013, http://www.darkreading.com/risk/us-cyber-command-head-general-alexander-to-keynote-black-hat-usa-2013/d/d-id/1139741

[xvi] Daniel E. Geer, “Cybersecurity and National Policy,” Harvard Law School National Security Journal, Volume 1 – April 7, 2010, http://harvardnsj.org/2011/01/cybersecurity-and-national-policy/

[xvii] https://www.blackhat.com/html/bh-us-11/bh-us-11-archives.html#Black

[xviii] https://www.blackhat.com/html/bh-us-12/speakers/Shawn-Henry.html

[xix] Jim Finkle, “Defcon 2012 Conference: Hackers To Meet With U.S. Spy Agency Chief,” Reuters, July 20, 2012, http://www.huffingtonpost.com/2012/07/20/defcon-2012_n_1691246.html

[xx] Spencer Ackerman, “NSA keeps low profile at hacker conventions despite past appearances,” Guardian, July 31, 2014, http://www.theguardian.com/world/2014/jul/31/nsa-hacker-conventions-recruit-def-con-black-hat/print

[xxi] George Smith, “Computer Security for the 1 Percent Day,” Escape From WhiteManistan, May 19, 2014, http://dickdestiny.com/blog1/?p=18011

[xxii] http://www.dhs.gov/homeland-security-advisory-council-members

[xxiii] Dan Goodin, “For first time ever, feds asked to sit out DefCon hacker conference,” Ars Technica, July 11, 2013, http://arstechnica.com/security/2013/07/for-first-time-ever-feds-asked-to-sit-out-defcon-hacker-conference/

[xxiv] Tim Shorrock, “Put the Spies Back Under One Roof,” New York Times, June 17, 2013, http://www.nytimes.com/2013/06/18/opinion/put-the-spies-back-under-one-roof.html

[xxv] “”We Won’t Succumb to Threats”: Journalists Return to U.S. for First Time Since Revealing NSA Spying,” Democracy Now! April 14, 2014, http://www.democracynow.org/2014/4/14/we_wont_succumb_to_threats_journalists#

[xxvi] “Inside the Web’s $156 Billion Invisible Industry,” Motherboard, December 18, 2013, http://motherboard.vice.com/blog/inside-the-webs-156-billion-invisible-industry

[xxvii] Spencer Ackerman, “NSA keeps low profile at hacker conventions despite past appearances,” Guardian, July 31, 2014, http://www.theguardian.com/world/2014/jul/31/nsa-hacker-conventions-recruit-def-con-black-hat/print

[xxviii] Andrea Shalal and Jim Finkle, “U.S. may act to keep Chinese hackers out of Def Con hacker event,” Reuters, May 24, 2014, http://www.reuters.com/article/2014/05/24/us-cybercrime-usa-china-idUSBREA4N07D20140524

August 1, 2014 Posted by | Civil Liberties, Corruption, Deception, Economics, Full Spectrum Dominance | , , , , | Leave a comment

Senators call on CIA director to resign

Press TV – August 1, 2014

Some US senators are calling on John Brennan, the director of the Central Intelligence Agency, to resign following the CIA’s admission that it spied on members of Congress.

“After being briefed on the CIA Inspector General report today, I have no choice but to call for the resignation of CIA Director John Brennan,” said Sen. Mark Udall (D-Colorado) in a statement on Thursday.

The CIA watchdog’s report sent shockwaves through US Congress when it revealed on Thursday that the agency’s staffers had unauthorized access to the computer network the CIA and the Senate Intelligence Committee had created to share classified documents as the committee was preparing a report on torture techniques used by the CIA during the presidency of George W. Bush.

“The CIA unconstitutionally spied on Congress by hacking into Senate Intelligence Committee computers. This grave misconduct not only is illegal, but it violates the U.S. Constitution’s requirement of separation of powers. These offenses, along with other errors in judgment by some at the CIA, demonstrate a tremendous failure of leadership, and there must be consequences,” Udall, who is a member of the Senate panel, added.

Sen. Martin Heinrich (D-New Mexico), another member of the committee, also called for Brennan’s resignation on Thursday.

“I think that at this point, it would probably be better for the agency, frankly, if he step aside,” Heinrich said. “I think that the level of trust between the committee and the director has hit a new low and I think today’s revelations largely sorted out who was being accurate in the run-up to this.”

Heinrich was referring to a months-long standoff between the spy agency and the Senate panel over spying allegations.

Following the release of the CIA Inspector General report on Thursday, Brennan apologized to the Senate Intelligence Committee.

The torture report prepared by the Senate panel is a 6,300-page report detailing torture techniques, including water-boarding, wall-slamming and shackling, used by the spy agency.

The report is not going to be made public and even a small portion of the report approved by the Senate to be made public is under review by the White House for further redaction before disclosure.

August 1, 2014 Posted by | Civil Liberties, Corruption, Deception | | Leave a comment

U.S. Anti-Iran Lobby Group Accused of Mossad Ties

By Richard Silverstein | Tikun Olam | July 31, 2014

The NY Times reports a blockbuster story about the anti-Iran lobby group, United Against a Nuclear Iran. It’s an especially perfidious group supporting regime change, though it couches its approach in terms of opposing Iran’ nuclear program. Curiously, this is precisely the same way Israel’s far-right government disguises its own support for the violent overthrow of the Iranian government. Knowing that such a plan is not supported by the west including the Obama administration, they believe that they can paint Iran as enough of a threat to the world through it’s alleged plans to create nuclear weapons, that this will get them half-way to regime change.

rami ungar

Rami Ungar, Israeli “fixer” working either for Mossad or UANI to make problems of sanctions-busting companies “go away”

UANI specializes in “outing” companies which allegedly violate UN sanctions against Iran. The Times article revealed that the companies are usually approached by an Israeli “fixer” with close ties to the Mossad. He’s Rami Ungar, owner of an Israeli company, Ray Shipping, who’s worth $500-million.

Ungar gives them an opportunity to renounce their supposed trade with Iran.  Sometimes they’re extorted for a donation to UANI as well. Though the article doesn’t mention it, I’m certain that the Mossad intermediary probes for companies that will serve Israel’s interests in its fight against Iran.  Companies doing business with Iran who are willing to become Mossad assets are worth their weight in gold, since the Iranians trust them and Israel can use such trust to sabotage whatever aspect of the Iranian military or commercial interests the sanctions-buster participates in.

What brought much of this to light is a lawsuit brought by one of the ship owners who was targeted by UANI.  Instead of rolling over and playing dead, Victor Restis decided to sue UANI to find out what was going on inside the bowels of this organization. Restis, who denies all charges against him made by UANI, decided to take the battle to UANI. He’s demanding to see internal documents that would show who conveyed information to the group about him, what the information said, and how it was collected. His suit also implies that the Mossad directly funds UANI, another explosive charge.

What’s especially odd about the case is that the U.S. Justice Department has threatened to intervene in the case on behalf of UANI. Clearly, the real reason they’re willing to take such an unusual step is that they’re trying to protect the Mossad. It would not only embarrass our Israeli ally[sic], it might expose the covert methods and work product of Israeli intelligence. It might allow Iran to find out what Mossad knows about it and how.

This is so unseemly because the Obama administration is protecting a foreign spy agency which aggressively steals U.S. secrets when possible. We are also protecting the Mossad as it attempts to manipulate U.S. public opinion in a witch hunt against Iran, which is a country with whom we’re trying to negotiate a rapprochement. Here is how the U.S. explained its “interest” in the case:

Government lawyers said they had a “good faith basis to believe that certain information” would jeopardize law enforcement investigations, reveal investigative techniques or identify confidential sources if released.

If we take this literally, it means the U.S. government has been in cahoots with the Mossad in this campaign against Iranian commerce. Even if it means something less than that, it certainly means that we’re protecting the Mossad as one of our “confidential sources.” The other possible interpretation is that the U.S. is investigating UANI or the Mossad for their collusion together, though the article doesn’t point in that direction at all.

UANI, though it claims to be a bi-partisan group above the political fray, is heavily laden with neocon, Bush-era personnel and board members. It’s full of U.S. intelligence officials and diplomats known as especially friendly to Israel, including Dennis Ross. Meir Dagan is also listed as an advisor. UANI appears little more than an extension of Israeli intelligence based in the U.S.

July 31, 2014 Posted by | Corruption, Deception, Economics, Timeless or most popular, Wars for Israel | , , , , , , | Leave a comment

Kosovo Liberation Army harvested Serb organs – EU inquiry

RT | July 29, 2014

An inquiry by the EU has found “compelling indications” that ten Serb captives had their body organs harvested for illegal trafficking during the 1998-99 Kosovo war. However, it wasn’t widespread and there will be no trial, the lead investigator said.

The chief prosecutor Clint Williamson, who led the investigation, said there was no evidence of widespread organ harvesting, but that the crime had occurred a number of times.

“There are compelling indications that this practice did occur on a very limited scale and that a small number of individuals were killed for the purpose of extracting and trafficking their organs,” he told journalists. However, he added that there would not be enough evidence at the moment to prosecute the alleged crimes.

The revelation was part of a presentation on a 2 1/2 year investigation into atrocities that also largely confirmed human right reports that there was a campaign of persecution against Serb, Roma and other minorities by some people in the Kosovo Liberation Army (KLA).

The investigation was prompted by a 2011 report by Council of Europe member Dick Marty that accused senior KLA commanders of involvement in the smuggling of Serb prisoners into northern Albania and the removal of their organs for sale.

Kosovo’s Prime Minister Hashim Thaci, himself a former KLA leader who was named in Marty’s report, has dismissed the accusations as an attempt to tarnish the Kosovo Albanian fight for independence.

“The government of the Republic of Kosovo appreciates the completion of the ambassador Williamson’s work, which is an important step to determine potential individual responsibility and gives an end to the claims of the unfounded charges,” Tachi said.

However, Williamson bitterly complained that the investigation had been made far more difficult because of “a climate of intimidation that seeks to undermine any investigations of individuals associated with the former Kosovo Liberation Army.”

Williamson did say the Special Investigative Task Force would in future be “in a position to file an indictment against certain senior officials of the former Kosovo Liberation Army” for a series of crimes, including killings, disappearances, camp detentions and sexual violence.

Without naming any individuals, Williamson said that “there are compelling indications that this practice did occur.“ He went to lengths to make clear the alleged harvesting was not a wholesale practice, rejecting claims of hundreds of victims. Some 400 people, mostly Kosovo Serbs, disappeared near the end of the war, AP reports.

Just over 2,000 Serbs are believed to have been killed during and immediately after the war.

Serbia has vowed never to recognize the independence of its former province, which many Serbians consider their nation’s heartland, after it declared independence in 2008. It is also not recognized by dozens of country’s worldwide, including Russia.

In Belgrade, Serbia’s war crimes prosecutor Vladimir Vukcevic told The Associated Press that Tuesday’s announcement “crowns a big effort on our part and shows that we were right when we said that war crimes had been committed and that organ trafficking took place.”

July 30, 2014 Posted by | Corruption, War Crimes | , , , , | Leave a comment

Mystery Surrounds U.S. Justice Department Move to Wrap Anti-Iran Group in Shroud of Secrecy

By Noel Brinkerhoff and Steve Straehley | AllGov | July 30, 2014

The U.S. Department of Justice has drawn attention to itself for helping an organization opposed to Iran maintain secrecy of its records, which are caught up in a defamation lawsuit filed against the group.

United Against Nuclear Iran (UANI) was founded six years ago and is operated by and gets advice from a who’s who list of American and foreign politicos, including former U.S. Senator Joseph Lieberman; Frances Townsend, the former homeland security adviser to President George W. Bush; Dennis Ross, a former Middle East adviser to both Republican and Democratic presidents; plus former intelligence chiefs from Israel, Germany and Britain.

Victor Restis, a Greek shipping magnate accused by UANI of violating sanctions by doing business with Iran, filed a defamation suit against the group. Restis’ lawyers have sought to compel UANI to release information about its donors and other details.

But the Justice Department stepped in and asked a federal judge to block the request, claiming the records contain sensitive information that the government considers important. Federal attorneys insisted “that certain information” would jeopardize law enforcement investigations, expose investigative techniques or identify confidential sources if released, according to The New York Times.

U.S. District Judge Edgardo Ramos in New York City granted the government’s request, while also describing the U.S. government’s involvement as “very curious.” The Justice Department has until July 31 to claim law enforcement privilege and keep the information from being disclosed permanently. In the meantime, each side has hurled charges and countercharges at the other.

“I am particularly concerned,” Ramos said in April, “that the defendants are able to utilize certain information in its public statements, and then not have to answer to their actions on the basis of a privilege.”

The claim of privilege puts the Justice Department in a conundrum. Federal intelligence agencies are not supposed to work with outside agencies to influence U.S. public opinion. But if UANI hasn’t been working with the government, what information could it have that would be so sensitive? We might find out on Thursday.

July 30, 2014 Posted by | Corruption, Economics, Ethnic Cleansing, Racism, Zionism, Progressive Hypocrite, Wars for Israel | , , , , | Leave a comment

U.S. Wasted $34 Million Pushing Soybeans on Afghanistan

By Noel Brinkerhoff | AllGov | July 26, 2014

From military hardware to counternarcotics operations, the United States has invested billions of dollars in Afghanistan to rebuild, if not reshape, the war-torn country. Much of this investment has proved ineffective, and the failings of American policy now include a misguided effort involving soybeans.

Four years ago, the U.S. Department of Agriculture (USDA) decided it would be a good idea to spend $34 million on getting Afghan farmers to grow soybeans and for Afghan consumers to eat them.

The USDA struck out on both counts, according to a report (pdf) from the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR), a frequent critic of U.S. spending in the country, and the Center for Public Integrity.

For starters, American officials thought farmers in the nation’s northern reaches could successfully grow soybeans. This decision was made despite the findings of British researchers last decade that “soybeans were inappropriate for conditions and farming practices in northern Afghanistan, where the program was implemented,” SIGAR’s top official, John Sopko, wrote in a letter to Agriculture Secretary Tom Vilsack.

The U.S. also paid about $1.5 million to build a processing plant for soybeans. When the crops failed, the government paid to have 4,000 metric tons of soybeans flown in from the United States at a cost of about $2 million to keep the plant running.

Nor could American experts convince Afghans to incorporate soybeans into their diet. The Center for Public Integrity reported that this effort “has largely been a flop, marked by mismanagement, poor government oversight and financial waste.”

But even if the U.S. didn’t bungle its implementation of the soy-is-good-for-you strategy, the plan was likely to fail anyway, the center concluded, because of “a simple fact, which might have been foreseen but was evidently ignored: Afghans don’t like the taste of the soy processed foods.”

To Learn More:

Afghans Don’t Like Soybeans, Despite a Big U.S. Push (by Alexander Cohen and James Arkin, Center for Public Integrity)

The U.S. Wasted $34 Million TryingTo Make Soybeans Happen In Afghanistan (by Hayes Brown, Think Progress)

Letter to Tom Vilsack (Special Inspector General for Afghanistan Reconstruction) (pdf)

More Than Three-Quarters of Soybeans, Corn and Cotton Grown in U.S. are Genetically Engineered (by Noel Brinkerhoff, AllGov)

July 26, 2014 Posted by | Corruption, Economics | , , , | Leave a comment

Full Disclosure and Accountability Said to be Missing from $7 Billion Citigroup Misconduct Settlement

By Steve Straehley | AllGov | July 17, 2014

The Department of Justice (DOJ) on Monday trumpeted reaching a $7 billion deal with Citigroup to settle charges of “egregious misconduct” in its sale of mortgage-backed securities. But despite evidence that Citigroup covered up massive problems with securities they sold, no company executives are being held personally liable and there has been no accounting of the money Citigroup made through its actions.

“Despite the fact that Citigroup learned of serious and widespread defects among the increasingly risky loans they were scrutinizing, the bank and its employees concealed these defects,” Attorney General Eric Holder said in a statement.

The settlement includes a $4 billion penalty, $2.5 billion for relief to struggling homeowners and $500 million in payments to state prosecutors and the Federal Deposit Insurance Corporation.

“DOJ brags about and wants everyone to focus on the $7 billion settlement dollar amount, but that amount is meaningless without disclosure of the key information about how many hundreds of billions of dollars Citigroup made, how many tens of billions investors lost, how many billions in bonuses were pocketed, which executives were involved and what positions they now have with the bank,” Dennis Kelleher, president of Better Markets, a group that promotes reform of the financial industry, said in a statement.

“Citigroup, the Wall Street bank that received the largest amount of Federal bailouts to prevent its bankruptcy in 2008 (almost $500 billion), was a conveyor belt for toxic securities throughout the world and is now being handed another big bailout by the government:  a sweetheart immunity deal and ongoing concealment of how its executives, officers and staff defrauded the American people and almost caused a second Great Depression,” Kelleher continued.

The settlement is far more than what Citigroup originally proposed: $363 million. But some say it’s not nearly enough. “Seven billion sounds like a lot. But compared to the number of families that lost their homes, it is not very much at all,” Isaac Simon Hodes, a community organizer with Lynn United for Change, a group that advocates on behalf of Boston-area residents facing foreclosure, told The New York Times.

As part of the settlement, the government is not going after Citigroup for its business in collateralized debt obligation derivatives, where pools of loans are packaged and sold to investors, which have been described as “designed to fail.”

JP Morgan Chase reached a $13 billion settlement with the DOJ last November in a similar case. On deck is Bank of America, with whom Justice will begin settlement negotiations now that the Citigroup case is over.

To Learn More:

Still No Real Accountability: Citigroup to Pay $7 Billion for Its “Egregious Misconduct” (by Andrea Germanos, Common Dreams)

Worse Than Settlements with JP Morgan Chase and Goldman (Better Markets)

Citigroup Settles Mortgage Inquiry for $7 Billion (by Michael Corkery, New York Times)

Citibank Accused of Tricking New Customers about “Free” Frequent Flyer Miles (by Noel Brinkerhoff, AllGov)

July 17, 2014 Posted by | Corruption, Deception | | Leave a comment

Justice Corrupted

By Lawrence Davidson | To The Point Analyses | July 10, 2014

Dogmatists in the Justice System

Scattered throughout the ranks of U.S. federal prosecutors and judges there have always been men and women who are unwilling to make a distinction between their own biases and the rules of evidence that are designed to keep the system focused on the goal of justice. Such closed-minded individuals, embedded in the system, can find themselves set free to act out their prejudices by special circumstances. One might think back to the “hanging judges” who appeared here and there on the American frontier in the 19th century. Being among the few enforcers of law and order in an otherwise anarchic environment, they indulged their fantasies of playing the wrathful god.

The “War on Terror” has likewise created a special circumstance that has liberated Justice Department dogmatists: Islamophobes, Zionists, neoconservatives and others who fancy themselves on a special mission to protect the nation from evil and conspiratorial forces. And, as with the hanging judges before them, the result has been an enhanced possibility not of justice, but rather of the miscarriage of justice.

The Case of Sami Al-Arian

In the past twenty years one of the most notable victims of doctrinaire judges and prosecutors has been Sami Al-Arian. Al-Arian is the son of Palestinian-refugee parents. He came to the United States in 1975 to attend university and earned his degree in computer systems engineering. Eventually he earned a Ph.D. and obtained a tenure-track position at the University of South Florida.

Not only did Al-Arian become a prominent professor, winning several teaching awards, but he also became a community activist, defending the civil liberties of minority groups, particularly Muslim Americans. During the Clinton administration he was an active campaigner against the Justice Department’s pre-9/11 use of “secret evidence” to hold people in jail indefinitely. He also actively and publicly supported the right of Palestinians to resist Israeli oppression.

At some point in the mid-1990s what may have been a coordinated effort to ruin Dr. Al-Arian developed among neoconservative and Zionist elements. Steven Emerson, a man who has made his living as a faux expert on terrorism and a professional Islamophobe, accused one of Al-Arian’s organizations, the World and Islam Studies Enterprise, of being a “terrorist front.” This accusation proved to be baseless, but it nonetheless led other Islamophobe radicals to focus on Al-Arian. Some of these people resided within the Justice Department and the FBI, and they went on a fishing expedition looking for alleged connections between Al-Arian and a recently designated “terrorist organization” called the Palestine Islamic Jihad (PIJ).

During the 2000 presidential election Al-Arian became a prominent figure in national politics as it played out in Florida. His major concern was the government’s use of secret evidence, and it was George W. Bush who promised to rein in the practice. Therefore Al-Arian backed Bush in the election. His trust in this regard proved horribly misplaced.

On September 26, 2001, Bill O’Reilly invited Al-Arian onto his TV show ostensibly to discuss Arab-American reactions to the 9/11 attacks. It was a trap. O’Reilly immediately asked Al-Arian if he had said “Jihad is our path. Victory to Islam. Death to Israel” at a rally thirteen years before (in 1988). Though Al-Arian tried to explain that it was a reference to his support for Palestinian resistance against apartheid policies in Israel, O’Reilly proclaimed that the CIA should watch Al-Arian from now on. Almost at once Al -Arian started to receive death threats. At this point the University of South Florida placed him on administrative leave. He would eventually be fired by the University.

The O’Reilly interview may have been a public relations booster for the ongoing Justice Department investigation mentioned above. That lasted until September 2003, when Al-Arian and three others were indicted on 25 counts of “racketeering” for the PIJ. The Bush administration’s Attorney General John Ashcroft went on television to extol the indictment as a great blow against terrorism (thus confusing an indictment with a conviction) that was made possible by the extensive powers of the USA PATRIOT Act. Among these powers were those George W. Bush had promised Al-Arian he would rein in.

After a 5-month, 13-day trial Al-Arian was acquitted on 8 counts and the jury deadlocked on the remaining 17. When a juror was interviewed after the trial and asked what was lacking in the government’s case he replied, “evidence.” Nonetheless, the outcome allowed the government to hold Al-Arian pending retrial on those deadlocked counts. The case had a distinctly contrived and corrupt feel to it – the result of Islamophobes turned loose by the events of 9/11 to substitute their own biases for the rules of legal evidence.

In 2006 Dr. Al-Arian was still in prison. His health was deteriorating and the strain on his family (his wife and five children) was great. Given the situation he agreed to a plea bargain agreement whereby he would plead guilty to one count of acting in a fashion that benefited the PIJ. In exchange the other counts would be dismissed by the government. He would be incarcerated for a relatively short period on the guilty count with time already served counting toward this sentence. In order to secure the plea bargain, Al-Arian also had to agreed to be deported upon release.

Once more the government, in this case the judge and the federal prosecutor, proved untrustworthy. Despite the jury verdict, the judge had decided that Sami Al-Arian was a “master manipulator” and “a leader of Palestine Islamic Jihad.” This was exactly what the jury decided the evidence could not substantiate. However, the judge, moved by emotional convictions, had equated statements on the part of Al-Arian showing understanding of acts of Palestinian resistance with actual material support of those actions. In doing so the judge went beyond the rules of evidence and corrupted the system he was sworn to serve. The judge gave Dr. Al-Arian not the minimum recommended in the plea bargain but the maximum of 57 months for the one count to which he pled guilty.

Then began a series of additional prosecutorial steps involving the issuing of repeated subpoenas demanding that Al-Arian testify at grand jury investigations. This was also in defiance of his plea bargain and so he refused. He was held in civil and later criminal contempt which added substantially to his jail time.

So egregious was the behavior of the prosecutors seeking his testimony that another, more objective judge eventually stepped in and halted the government’s efforts to force Sami Al-Arian’s to appear before grand juries. Dr. Al-Arian was also let out of prison and allowed to live under a liberal form of house arrest at his daughter’s home in Virginia. His case was held in a kind of legal limbo until just recently, when on 27 June 2014, prosecutors decided to drop all charges against Al-Arian. One should not think of this as a total victory, for the government still intends to deport Sami Al-Arian.

Sami Al-Arian and his family had to endure eleven years of persecution on the basis of assumptions that were substituted for evidence. In the process the life of an upright man, devoted to teaching, charitable works and the cause of a persecuted people, was ruined. The people who did this to him simultaneously corrupted the justice system the integrity of which they were sworn to uphold.

Other Victims

While Sami Al-Arian was perhaps the most high-profile of these cases, his was not the only one. Four members of the Holy Land Foundation charity were charged with materially aiding Hamas when, in fact, all the foundation did was supply money to charitable Palestinian organizations which had been accredited by Israel. It took two trials, one in 2007 and another 2008, for the U.S. government to eke out a conviction on weak evidence that included the testimony of anonymous Israeli witnesses. The Supreme Court refused to interfere with this prima facie unconstitutional procedure.

At present a Palestinian civil rights activist in Chicago, Rasmea Odeh, is being prosecuted for an alleged immigration fraud for failing to report on her immigration application that forty-five years ago, when she was a child, she was arrested by the Israeli military and briefly held without charge. The same prosecutor who went after the Holy Land Foundation is involved in the prosecution of Odeh.

Conclusion

Times of high tension often result in the lowering of important standards in the application of law. They do so by heightening the fears of the general public, which in turn gives license to bigots embedded in the justice system such as judges and prosecutors who have Islamophobic prejudices, Zionist biases, or neoconservative delusions. All of these motives may come into play in cases such as those mentioned above.

Normally the appeals process should catch and reverse such problematic behavior. However, if the period of public fear is prolonged, the appeals process might also become corrupted by public hysteria and political pressures. It took Sami Al-Arian eleven years to overcome his prosecutorial ordeal and those of the Holy Foundation members and Rasmea Odeh are ongoing.

The last word on this dilemma should go to Sami Al-Arian’s son, Abdullah, who in a recent statement observed,“It’s a sad day when you have to leave America to be free.” Indeed, when dogmatists are in control none of us are really free.

July 10, 2014 Posted by | Civil Liberties, Corruption, Ethnic Cleansing, Racism, Zionism, Islamophobia | , , , | Leave a comment

Prosecution of Public Officials for Corruption Declines under Obama

By Noel Brinkerhoff | AllGov | July 9, 2014

Going after government officials for corruption has not been a priority of the U.S. Department of Justice under President Barack Obama, compared with his predecessors.

Cases of public corruption that have been prosecuted are down this year versus what they were last year, according to the Transactional Records Access Clearinghouse (TRAC) at Syracuse University.

TRAC also reports that the number of public corruption prosecutions is noticeably down during the Obama administration when compared to those pursued under Presidents George W. Bush and Bill Clinton.

As of July 2014, the Justice Department has filed 302 corruption prosecutions, putting the agency on a pace of 518 for this year.

If this rate holds up, the total would represent an 18.6% decline from 2013, when there were 636 prosecutions.

The drop is even sharper when the Justice Department numbers are put up alongside those from 2004 (down 32% when there were 760 cases under Bush) and 1994 (down 27% when 711 were reported under Clinton).

TRAC says public corruption referrals sent from federal agencies to Justice have averaged 1,674 during the past five years. This total is about the same as under Bush (1,663 referrals).

“The number of prosecutions, however, has fallen under Obama because a smaller percentage of these referrals (39.5%) ends up being pursued by prosecutors,” TRAC states. “So far during FY 2014 only about one out of every three (34.0%) were prosecuted. During the Bush years, 41.6 percent of the official corruption referrals resulted in prosecution.”

To Learn More:

Official Corruption Prosecutions Decline Under Obama (TRAC Reports)

July 9, 2014 Posted by | Corruption, Progressive Hypocrite | , | Leave a comment

No ‘gold rush’: Germany keeps reserves in the US

RT | July 7, 2014

Germany’s plan to bring back the nation’s gold reserves to Frankfurt by 2020 has fizzled, and instead has for now decided to leave $635 billion of gold in US vaults.

Home to the world’s second largest gold reserves, worth $141 billion, Germany only keeps about one third of its gold ‘at home’, the rest is abroad. 45 percent is in the US Federal Reserve in New York, 13 percent in London, 11 percent in Paris, and only 31 percent in the Bundesbank in Frankfurt.

“The Americans are taking good care of our gold, we have no reasons for mistrust,” Nobert Barthle, the German Parliament Budget spokesman, told RT.

Critics of the slow progress disagree.

“Why we haven’t been allowed to inspect escapes me, I’m no conspiracy theorist, but the Bundesbank should be able to audit the gold once a year like it does with reserves in Frankfurt,” Hans Olaf Henkel, German member of the European Parliament, told RT.

At the end of June for the first time a German delegation traveled to New York to check up on their gold holdings, the first in the last 10 years. The lack of inspection has led some to question whether it’s still there.

The movement to ‘bring the gold home’ was largely led by euroskeptics who campaigned to repatriate all the country’s precious metal by 2020. So far, they’ve only managed to bring back 10 percent, or 300 tons. Another 374 tons from the Banque de France is set to be returned to Germany in the near future.

“We are still missing for example published bar number lists, even though the US Federal reserve publishes this list for their own gold,” says Peter Boehringer, Founder of Repatriate our Gold Campaign.

However, auditors last week said they were pleased with the US continuing to look after Germany’s treasures. The delegation said there is no rush to bring it home, and that keeping it there even offers an advantage, as it can be used for emergency currency for gold swaps.

After World War II, Germany bought gold from the US Federal Reserve, but decided to keep in overseas instead of back to the Bundesbank. During the Cold War, fear of a Soviet invasion made overseas storage a safer option.

Recently, the Bundesbank has been criticised for not holding its reserves in Frankfurt, so it has decided that some should be brought back to Germany.

Transporting the gold will be a high security operation. When France transferred its reserves in 1966 it used a submarine.

July 7, 2014 Posted by | Corruption, Deception, Economics, Timeless or most popular | , | Leave a comment

PhRMA Wants US To Use TAFTA/TTIP To Stop EU Releasing Basic Drug Safety Information

By Glyn Moody | Techdirt | July 3, 2014

Back in February, we reported that PhRMA, the Pharmaceutical Research and Manufacturers of America, was pushing to have the EU put on the US’s ‘Priority Watch List’ for its plans to disclose basic safety information about drugs. Now a letter from PhRMA obtained by the German newspaper Der Tagesspiegel shows that US pharmaceutical companies are trying to use TAFTA/TTIP to undermine the new EU rules on making clinical trial data available (original in German):

A letter from the U.S. pharmaceutical association (PhRMA) to the TTIP chief negotiator for the United States, Douglas Bell, states: “The disclosure of confidential data from clinical and pre-clinical study files and patient data puts at risk the health system and the well-being of patients.” Why more transparency should harm the health systems, the lobby group doesn’t explain, but it makes clear to the negotiator how he should conduct the negotiations with the EU: the publication of commercially-sensitive data from a market authorization, the PhRMA letter said threateningly, is not only contrary to the rules of the American FDA, but also to the internationally-accepted intellectual property rights of the World Trade Organization, the so-called TRIPS Agreement. “PhRMA and its members call on the U.S. government to influence the EU at all levels in order to eliminate this problem.”

It’s hard to see how the problem can be “eliminated.” Back in April, the European Parliament adopted the Clinical Trials Regulation by a huge majority. Effective from 2016, it states that information from clinical study files “should not generally be considered commercially confidential” and must be made publicly available — exactly what PhRMA is lobbying against.

What’s worrying is that there’s already been one attempt to water down these requirements. Der Tagesspiegel suggests this may have been as a result of pressure from the European Commission, concerned about US reaction to them. It will be interesting to see how the Commission reconciles any US demands during the TAFTA/TTIP negotiations to remove the requirement to publish drug safety information with the new EU regulation that requires it.

Follow me @glynmoody on Twitter or identi.ca, and +glynmoody on Google+

July 3, 2014 Posted by | Corruption, Deception, Economics | , , , , | Leave a comment

Tony Blair ‘to advise’ Egyptian dictatorship

RT | July 2, 2014

Tony Blair has reportedly agreed to advise coup-appointed Egyptian President, Abdel Fattah el-Sisi, as part of a United Arab Emirates-funded program which promises lucrative “business opportunities” to those involved.

Blair is set to give Sisi advise on economic reform in tandem with a UAE financed taskforce in Cairo, the Guardian reported on Wednesday. According to the daily, the taskforce is being run by the management consultancy Strategy&, formerly Booz and Co, now part of PricewaterhouseCoopers. The group hopes to attract foreign direct investment to Egypt’s crisis racked economy at an upcoming Egypt donors’ conference, which is being sponsored by oil-rich UAE, Kuwait and Saudi Arabia.

The former prime minister and Middle East peace envoy supported the coup against Egypt’s democratically elected president Mohamed Morsi last July and continues to generate controversy with his complicated dealings in the region.

A spokeswoman for Blair told the Guardian that his attempts to garner support for Egypt from the international community were not being done “for any personal gain whatsoever.”

“He is giving advice, he will have meetings, that’s all,” she said, stressing that neither Blair nor any organizations associated with him would make money out of Egypt.

She added that he believes the Sisi government “should be supported in its reform agenda and he will help in any way he can, but not as part of a team.”

When pressed on the lucrative “business opportunities” the Egypt project and its Gulf backers promised, she said: “We are not looking at any business opportunities in Egypt.”

A former close political associate, however, told the Guardian that Blair’s role in advising the Egyptian regime would cause “terrible damage to him, the rest of us and New Labour’s legacy.”

The associate said that Blair was able to kill two birds with one stone in Egypt, battling the threat of Islamism while sinking his teeth into “mouth-watering business opportunities” in return for Bush-era advocacy.

He added that it would be a very lucrative business model, but one Blair should not be involving himself with.

“He’s putting himself in hock to a regime that imprisons journalists. He’s digging a deeper and deeper hole for himself and everyone associated with him.”

Alastair Campbell, Blair’s former press secretary who resigned in 2003 over the Iraq Dossier scandal, is also a paid advisor consulting the Sisi government on its public image. When asked by the Guardian on Wednesday if he had been working with Strategy&, Campbell refused to say who he had been working with. Like Blair, Campbell also visited Cairo earlier this year as part of the Gulf-funded program to prop up the regime. Another former Blair employee, Darren Murphy, a so-called special advisor in the Blair government who has traded off the former PM’s name for years, has also been working on the program.

In June, Sisi, Egypt’s former army, won 96.9 percent of the votes in a presidential poll that had all the hallmarks of a dictatorial election.

Saudi King Abdullah bin Abdulaziz was the first international leader to congratulate Sisi on his election victory.

King Abdullah hailed Sisi’s ’win as a “historic day” for Egypt, calling for donors a donors conference to help Egypt through its economic troubles.

“To the brothers and friends of Egypt… I invite all to a donors conference… to help it overcome its economic crisis,” he said.

Since the Morsi government was toppled, hundreds of alleged supports of the ex-president and his Muslim Brotherhood movement have been sentenced to death. The persecution of political opponents and crackdown on journalists has pushed US congressional leaders to consider withholding $1.3 billion in military support to Cairo.

Since stepping down as prime minister in 2007, Blair and his companies have worked with a variety of repressive and dictatorial regimes across the world. Blair’s Middle East interest appear to be expanding, with aids confirming last month he was considering opening an office in the UAE capital Abu Dhabi. His work in Egypt could be viewed as even more contentious, due to the bloody nature of the coup and his work as a mediator in the region.

In June, retired diplomats and political enemies came together to demand that Blair be fired as the envoy to the Quartet on the Middle East– the UN, US, Russia and EU – after failing to bring Israel and Palestine closer to a peace deal.

July 2, 2014 Posted by | Civil Liberties, Corruption, Economics | , , | Leave a comment

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