Aletho News

ΑΛΗΘΩΣ

Dianne Feinstein: NSA Would Never Abuse Its Powers Because It’s ‘Professional’

By Mike Masnick | Techdirt | January 21, 2014

Senator Dianne Feinstein, as we’ve noted, seems to have this weird blindness to even the very idea that the NSA might abuse its powers, despite a long history of it doing exactly that. The history of the US intelligence community is littered like a junk yard with examples of massive abuses of power by intelligence folks. And yet, Feinstein seems shocked at the idea that anyone questions the NSA’s ability to abuse the system. Why? Because the NSA is “professional.” Appearing on Meet the Press this weekend, Feinstein just kept repeating how “professional” the NSA is as if that was some sort of talisman that wards off any potential of abuse. First, host David Gregory pointed to reporter Bart Gellman’s claim that President Obama’s NSA reforms will allow for the expansion of the NSA’s collecting personal data on “billions of people around the world, Americans and foreign citizens alike” and told Feinstein that didn’t seem like it was protecting people’s privacy. And Feinstein went straight to her “but they’re professionals!” argument:

Well, I would disagree with Mr. Gellman. I think that what the president has said is that he wanted to maintain the capability of the program. That, as Chairman Rogers said, it has not been abused or misused. And it is carried out by very strictly vetted and professional people.

Of course it has been “abused” and “misused,” but let’s not let details get in the way.

Later in the interview, Gregory asks Feinstein to comment on Rep. Mike Roger’s totally unsubstantiated (and contradicted by nearly everyone else in the know) claims that Ed Snowden was working for Russian intelligence, and Feinstein bizarrely returns to talking about just how “professional” NSA staffers are.

DAVID GREGORY:
And do you agree with Chairman Rogers that he may have had help from the Russians?

SENATOR DIANNE FEINSTEIN:
He may well have. We don’t know at this stage. But I think to glorify this act is really to set sort of a new level of dishonor. And this goes to where this metadata goes. Because the N.S.A. are professionals. They are limited in number to 22 who have access to the data. Two of them are supervisors. They are vetted. They are carefully supervised. The data goes anywhere else. How do you provide that level of supervision?

Of course, Ed Snowden was also “vetted” and “professional.” And Feinstein seems to think he may have been working for the Russians, which seems to suggest that any of the other “vetted” and “professional” NSA employees might be abusing their position as well. And, I mean, I’m sure the NSA analysts who listened in on phone sex calls between Americans and then shared them around the office were also “vetted” and “professional.”

In fact, I’d think pretty much the entirety of human history concerning intelligence efforts suggests that abuse is almost always carried out by people who are “vetted” and “professional.” And that’s exactly what has most people so concerned about these programs and what the NSA is doing. No matter how well-meaning, well-trained or well-vetted people are, the temptation and ability for abuse is way too strong. Just last week, we were quoting a bunch of “vetted” and “professional” NSA folks talking about how they fantasized about murdering Ed Snowden. Those comments don’t sound particularly professional at all. They sound like people who shouldn’t be allowed within miles of people’s private data. But Feinstein apparently sees no problems with those kinds of people having the ability to search through your private data. Because they’re “professional.”

January 21, 2014 Posted by | Civil Liberties, Corruption, Full Spectrum Dominance | , , , | Leave a comment

FBI Arrests Michael Grimm’s Girlfriend; Meanwhile Another Congress Member Implicated

 photo durgrimm_zps72627271.jpg

Diana Durand (L) has been arrested in connection with illegal campaign contributions allegedly made to the 2010 campaign of New York Republican Congressman Michael Grimm (R)

By Richard Edmondson | Fig Trees and Vineyards | January 18, 2014

Diana Durand, a Texas woman who apparently has been romantically involved with Congressman Michael Grimm, has been arrested and charged with illegally funneling money into the New York congressman’s 2010 campaign.

She is also accused of steering “straw donations” into the campaign of yet another congress member, Rep. Aaron Schock (R-IL), according to the New York Daily News.

A straw donation is a donation to a political campaign made by one person, though under another person’s name. It is a way of getting around legal limits on the amount of money that can be contributed to political candidates.

Schock, like Grimm, is an avid supporter of Israel.

Durand is 47-years old and was arraigned in federal court in Houston on Wednesday. She has hired an attorney, Stuart Kaplan, who is a longtime associate of Grimm, both having served in the FBI.

Grimm left the FBI in 2006, was elected to Congress in 2010, and in 2012 the FBI opened an investigation into him over possible illegal campaign donations to his 2010 congressional campaign made by supporters of Israeli Rabbi Yoshiyahu Pinto.

Durand is free on $50,000 bond and is scheduled to appear in court on January 30. The following is from the New York Daily News account:

The single mother of one worked with Grimm before his election when he launched a trucking company near Houston. Records list her brother and sister-in-law as executives at the firm.

Sources said Durand and Grimm, 43, who is divorced, were involved romantically, and that she visited him in Washington after his election.

Durand was busted Friday, nearly five months after a Brooklyn judge first ordered her arrest. Feds spent the intervening months in an unsuccessful bid to win her cooperation in an ongoing probe into allegations that Grimm and supporters encouraged donors to make illegal contributions to his 2010 campaign, people with knowledge of the case said.

As I reported previously, campaign donations totaling more than $500,000 were reportedly solicited on Grimm’s behalf by a top Pinto aide, Ofer Biton, who was arrested in 2012 for immigration fraud and who pled guilty to that charge last August.

The FBI had sought to have Biton turn state’s evidence against Grimm, but he has refused, and apparently Durand intends doing likewise. Also as I repoted before, Grimm has friends in high places—Israel—where he reportedly maintains close ties to Prime Minister Benjamin Netanyahu, and according to reports, the Israeli police have done their best to sabotage the FBI’s investigation.

 photo grimyahu_zps6f085320.jpg

Grimm with Benjamin Netanyahu

Schock would appear to be the second congress member implicated in what seems to be a widening investigation. According to the Chicago Tribune:

Schock, 32, is a prolific fundraiser serving his third term in Congress. He had more than $2.9 million in his war chest in September, when the most recent campaign-finance reports were filed.

The House Ethics Committee has been examining Schock’s fundraising after reports that in 2012, he solicited $25,000 for a super PAC, in excess of a $5,000 limit for lawmakers asking for money for that kind of independent-expenditure group.

The Tribune also reports on a statement issued by Schock’s office in which a spokesperson said, “This literally is the first our office has heard of this issue.”

In March of 2010, Schock and 326 other members of Congress signed onto a letter to Secretary of State Hillary Clinton affirming their “commitment to the unbreakable bond that exists between our country and the State of Israel and to express to you our deep concern over recent tension.”

The “recent tension” referred to by the signatories of the letter is an incident I referred to in my first article on the Grimm investigation. On March 9, 2010 the Israeli government announced the construction of 1,600 new homes, for Jews only, to be built in East Jerusalem. The announcement coincided with a state visit to Israel by US Vice President Joe Biden, and was viewed by many as insulting to America. Clinton referred to it as “deeply negative” for US-Israeli relations.

And as I also noted:

Coincidentally, simultaneous to the slight against Biden, the parents of Rachel Corrie were in Israel for the start of their civil trial charging the Israeli military in the wrongful death of their daughter.

Biden’s response to the announcement of the 1,600 new homes was to issue a servile statement in which he declared that “there is no space between the United States and Israel,” whereupon he boarded a plane and jetted home to America without offering any words of support to the Corrie family.

Schock and the other signers of the letter went on to state:

Our valuable bilateral relationship with Israel needs and deserves constant reinforcement. As the Vice-President said during his recent visit to Israel: “Progress occurs in the Middle East when everyone knows there is simply no space between the U.S. and Israel when it comes to security, none. No space.” Steadfast American backing has helped lead to Israeli peace treaties with Egypt and Jordan. And American involvement continues to be critical to the effort to achieve peace between Israel and the Palestinians.

We recognize that, despite the extraordinary closeness between our country and Israel, there will be differences over issues both large and small. Our view is that such differences are best resolved quietly, in trust and confidence, as befits longstanding strategic allies. We hope and expect that, with mutual effort and good faith, the United States and Israel will move beyond this disruption quickly, to the lasting benefit of both nations.

Born of Morrocon Jews, Pinto is one of the richest rabbis in Israel and is viewed by some as a religious and financial “guru” and a “wonder rabbi.” His adherents in the past have included some of the wealthiest oligarchs in the world and also Israeli political leaders:

In Israel, the list of those seeking Rabbi Pinto’s advice reads like a high-society gossip column: Multi-millionaires Lev Leviev and Nochi Danker, opposition leader Tzipi Livni and former Industry Minister Benjamin Ben Eliezer, who the rabbi supposedly brought out of a coma earlier this year. It is even rumoured that Prime Minister Benjamin Netanyahu consults him.

Now, however, he seems to be in hotwater with Israeli police, who have charged him with attempting to bribe a police official—apparently in a bid to sabotage the FBI’s investigation of Grimm. The FBI is hoping to have Pinto testify against Grimm, and reportedly is in possession of a wiretap audio in which Israeli police can be heard threatening the rabbi.

And finally, as I reported yesterday, Grimm apparently isn’t the only Congress member who has accepted donations from Pinto’s wealthy followers. House Majority Leader Eric Cantor is reported to have as well.

Cantor’s ties to Pinto have also been commented upon by blogger Richard Silverstein, who has written extensively on the FBI’s investigation of Grimm:

The key question is whether the techniques and solicitors used in Grimm’s campaign match those used by Cantor. If so, then the FBI is very interested in Cantor. If Cantor was smarter than Grimm and didn’t use mafiosi to collect cash as Grimm did, then he may not get into trouble. But the very fact that Cantor dipped into Grimm’s cookie jar so heavily is mighty suspicious. Who knows where it will lead?

Grimm, by the way, is not Jewish but of Italian descent, which makes us wonder why the Israelis are apparently so keen to protect him—and after all, there are plenty of Israel supporters in Congress. But as Silverstein notes, it’s insurance:

To be clear, I don’t have a smoking gun that points to Netanyahu involvement in sabotaging the FBI investigation.  But I do have a series of strong circumstantial evidence that leads in that direction.  But why would Bibi or Sara care about this enough to take such risky actions as agitating the FBI?  Let’s return to that grand strategy of electing even more Israel-friendly GOP members of Congress.  If Michael Grimm was their model to see whether Pinto was a new source of campaign cash, they needed to protect him if he might be going down.  Rather than lose their investment and shut down this conduit for millions in new campaign funding, they’d go to the mat to help Grimm.

More background on Bibi’s strategy in dealing with the U.S. political process: he’s found that presidents may not like him because they are slightly more independent than members of Congress.  But Congress is in his back pocket due to that campaign largess I mentioned earlier.  Bibi is hated in the White House but loved (or feared) in Congress.  When he can’t get an invitation to the White House, he goes over the president’s head and gets to address a Joint Session of Congress.

This is the same strategy he and the Lobby are following regarding the Iran sanctions legislation.  The president doesn’t want new sanctions.  Most sane members of Congress don’t want them either.  But the Lobby and Israel do.  They want a war with Iran.  So they want to sabotage Obama’s strategy of negotiating his way out of the impasse.  How best to do this?  Don’t confront Obama head-on because he’s an immovable object on this matter.  But do an end-around.  Activate all those pro-Israel IOUs in Congress.

So the more Michael Grimms there are in Congress, the more Israel has its own interests guaranteed in the halls of Congress.

And of course, there’s no shortage of money. In fact, in a manner of speaking, there’s money to burn:

 photo pinto_lev_zpsa6cdf727.jpg

Rabbi Pinto, center, surrounded by oligarchs, including Israeli diamond billionaire Lev Leviev, far right.

January 19, 2014 Posted by | Corruption, Deception, Wars for Israel | , , , , | Leave a comment

Cantor Tied to Controversial Rabbi at Center of Probe

rabbi-yosef-pintocantor_zps1970cabc
By Richard Edmondson | Fig Trees and Vineyards | January 17, 2014

Yesterday I posted an article on the FBI investigation of New York Congressman Michael Grimm in connection with campaign donations to his 2010 campaign made by supporters of Israeli Rabbi Yoshiyahu Pinto. If you haven’t read the article, it’s here.

Pinto is listed as one of the richest rabbis in Israel (he is rabbi to some of the world’s wealthiest oligarchs), and in the article I speculated on whether other supporters of Israel now serving in congress may have received donations from the same source.

Well, a news article posted in 2012 would seem to indicate that there are, and that one of them is Eric Cantor, one of the most powerful members of Congress, and a staunch supporter of the Jewish state (Cantor is himself Jewish). The article in question is posted at Al-Monitor. Here is an excerpt.

Indeed, detailed examination of federal campaign filings by Al-Monitor indicate that the top seven donors to Cantor’s 2008 campaign are followers or associates of Rabbi Pinto. Together, the group of close Rabbi Pinto associates that made up Cantor’s seven top donors in 2008 gave about $330,000 to the Virginia Republican–almost 10% of the $3.9 million total Cantor raised for the 2008 race. None of them are from Virginia, and some had not previously given to US political campaigns.

Josef Ben Moha of New Jersey donated $48,100 to Cantor’s Victory Fund on April 11, 2008 — his only campaign donation in US records. Moha is listed as managing director of Livono (or Livorno) Partners, whose CEO Ben Zion Suky also donated $48,100 to Cantor on the same date. Suky serves as the “right-hand man … translator, gatekeeper and conduit to the outside world” for Pinto, the Forward reported last year. He also owns property with Rabbi Pinto’s wife, as well as a porn DVD distribution business.

Haim Milo Revah, a real estate developer from California who has credited Pinto with offering successful business advice, donated $48,100 to Cantor on April 21, 2008, records show.

Real estate broker Haim Binstock, and his wife his wife, Gallya Binstock, together donated $91,600 to Cantor’s campaign on Oct. 31, 2008. Binstock’s business partner Ilan Bracha, and his wife, Mati Bracha, also donated $91,600 to Cantor’s campaign on the same date, campaign filings show. In 2008, Binstock and Bracha Manhattan property they planned to donate for use as a synagogue for Rabbi Pinto, they told The Wall Street Journal last year.

More recently, George Klein, described by The New York Times as a longtime Republican power broker who attends Pinto’s Shuva Israel congregation at 155 E. 58th St. in Manhattan, donated $50,000 to Cantor’s Victory Fund on Oct. 18, 2011, campaign filings show. Klein, who has donated to several other Republican candidates in smaller amounts, is also a member, with Cantor, of the Republican Jewish Coalition.

As I noted in yesterday’s article, Grimm is reportedly a close confidante of Israeli Prime Minister Benjamin Netanyahu, and the Israeli police seem to be trying to deliberately sabotage the FBI’s investigation of him.

The FBI is hoping to have Pinto testify against Grimm, but the rabbi has been charged in Israel with bribing a police official, a development which would compromise his credibility as a witness–presumably against Grimm or any other member of Congress who may have broken the law. A wiretap reportedly in the possession of the FBI has Israeli police threatening Pinto.

The case has been written about extensively by blogger Richard Silverstein, who has reported that among the allegations are that donors to Grimm’s 2010 campaign were promised green cards in return for their support (campaign contributions by non-citizens are illegal) and also that some of the donations exceeded the legal limit.

“There is no evidence of any impropriety in Cantor’s contacts with Rabbi Pinto,” notes the 2012 Al-Monitor report.

January 18, 2014 Posted by | Corruption, Wars for Israel | , , , | Leave a comment

Major Political Donors Have Access to TPP Documents. Everyone Else? Not So Much

By Mike Masnick | Techdirt | January 17, 2014

The good folks over at MapLight have taken a look at the members of the Industry Trade Advisory Committee on Intellectual Property Rights (ITAC-15). As we’ve discussed in the past ITAC 15 is a committee of high powered corporate representatives who are basically the only ones with full access to the text of the intellectual property chapter of the TPP. Those on ITAC 15 are allowed to see the latest text by logging into a system from the comfort of their desks. If Congress wants to see it? No luck. Members of Congress are allowed only to visit the USTR offices, where they’ll be shown a copy of the document in a sealed room. They’re not allowed to bring staff (such as the experts who would understand this stuff). They’re not allowed to take notes or make any copies. Basically, the corporate interests have a lot more oversight over the whole process than Congress does.

So how does one get onto ITAC 15? It’s not easy. Lawyer Andrew Bridges (whose name you might recognize) sought to get onto ITAC 15 as one of the country’s foremost experts on copyright law and its impact on innovation and startups. He was nominated… but denied. But who does get on there? According to MapLight’s analysis, it helps to be a major corporate donor to political campaigns:

  • The 18 organizations represented by ITAC-15 gave nearly $24 million to current members of Congress from Jan. 1, 2003 – Dec. 31, 2012.
  • AT&T has given more than $8 million to current members of Congress, more than any other organization represented by ITAC-15.
  • House Speaker John Boehner, R-Ohio, has received $433,350 from organizations represented by ITAC-15, more than any other member of Congress.
  • Democrats in Congress have received $11.4 million from organizations represented by ITAC-15, while Republicans in Congress have received $12.6 million.
  • The members of Congress sponsoring fast-track legislation, which would allow the President to block Congress from submitting amendments to the TPP, have received a combined $758,295 from organizations represented by ITAC-15. They include Senate Finance Committee Chairman Max Baucus ($140,601), Senate Finance Committee Ranking Members Orrin Hatch ($178,850), House Ways and Means Committee Chairman David Camp ($216,250), House Ways and Means Subcommittee on Trade Chairman Devin Nunes ($86,000), and House Rules Committee Chairman Pete Sessions ($136,594).

I’m sure that’s all just a coincidence, right? If the USTR was really seeking to convince the world that the TPP isn’t just a corporatist power grab to give political crony’s a leg up against innovators, it’s doing a piss poor job of convincing anyone that’s the case.

January 17, 2014 Posted by | Corruption, Progressive Hypocrite | , , , , | Leave a comment

US to Expand Military, Intelligence Presence in Bahrain

us-military-bases-surround-iran

Al-Manar | January 17, 2014

The US military plans to establish an intelligence center in Bahrain in a bid to compensate for its dwindling presence in Afghanistan.

A senior US military official told a Senate hearing that the planned espionage center in the Arab state, home to the US Navy’s 5th Fleet, will be an “integral part” of the Pentagon’s post-2014 strategy in Afghanistan, the Washington Post reported on Thursday.

The official, Erin Logan, who oversees the Pentagon’s “counter-narcotics efforts,” claimed during a US Senate hearing on narcotics on Wednesday that the plan is part of Washington’s efforts to “continue fighting” Afghanistan’s “booming drug industry.”

“The center,” she added, “will help fill the gap where space for personnel on the ground in Afghanistan is no longer available.”

The US move to expand its military and intelligence presence in Bahrain comes, however, despite the grave human rights record of the ruling Al Khalifa regime for its brutal crackdown on a popular uprising that has left scores shot and tortured to death and many more injured and prosecuted for taking part and even sympathizing with the continuing anti-regime protests in the country.

The United States has long been suspected by regional countries, particularly Iran and Russia, of promoting the growth of the narcotics trade in Afghanistan ever since American and NATO military forces invaded the country in 2001 under the pretext of fighting terror and bringing stability to Afghanistan.

There have been numerous press accounts over the past years pointing to the involvement of US troops and CIA operatives in Afghanistan’s expanding drug trade that largely finances the al-Qaeda-linked Taliban militants in the country.

The US military aims to establish an intelligence center in the Persian Gulf kingdom of Bahrain in a bid to compensate for its dwindling presence in the war-torn Afghanistan.

January 17, 2014 Posted by | Corruption, Deception, Militarism, Progressive Hypocrite | , , , | Leave a comment

“The Americans Lied to Us”

The German government and its intelligence services no longer believe the United States will stop spying on German citizens. Resentment is running deep.

By Hans Leyendecker and Georg Mascolo | Süddeutsche Zeitung | January 13, 2014
Translated by Ron Argentati, edited by Gillian Palmer | Watching America

The planned “no spy” agreement with Germany seems doomed. While negotiations are still officially underway, Germany has little hope that a bilateral agreement acceptable to the United States is likely. The Americans will not even make a commitment to refrain from snooping on German government and political officials in the future.

There is a great deal of disappointment in German intelligence circles where the Bundesnachrichtendienst [the German intelligence agency] is charged with carrying on the negotiations. One BND expert told the Süddeutsche Zeitung, “We’re not getting anything in return.”

BND President Gerhard Schindler is said to have told his staff that he would prefer to do without a no-spy agreement under such circumstances. Resentment among German negotiators is considerable. One high-level negotiator feels the Americans lied to them.

The U.S., for example, refuses to tell Germany the time frame in which Angela Merkel’s telephone was being monitored and whether America eavesdropped on other high-level German government officials’ telephone conversations as well.

Prior to eavesdropping on the German chancellor, the U.S. had guaranteed in writing that American intelligence would avoid doing anything counter to German interests. Requests by German constitutional lawyers for access to a suspected U.S. listening station on the top floor of their embassy on Berlin’s Pariser Platz were rejected by U.S. officials.

The German government had previously informed the U.S. government it would consider such a listening station to be a breach of the Vienna Convention on Diplomatic Relations. The German attorney general’s office will determine whether a formal investigation should be conducted.

The U.S. refusal to sign an enforceable agreement came as a surprise to Berlin. As late as this summer, National Security Agency Chief General Keith Alexander told his German counterparts, among them BND President Schindler, that the U.S. was preparing a far-reaching no-spy agreement. But he always provided the caveat that such an agreement would have to be approved by the White House, saying his office had no authority to do so independently.

The Americans’ apparent engagement led the German government to expect a quick and positive conclusion. The word in August was that oral agreements with the Americans were already in place stipulating “no mutual espionage, no industrial spying and no infringements of national laws.” These supposed agreements have now vanished into thin air.

A spokesperson for the German government refused to comment on the Süddeutsche Zeitung report because negotiations were still underway. The chancellor’s office stated it had hopes of a conclusion sometime within the next three months.

Germany – Süddeutsche Zeitung – Original Article (German)

January 16, 2014 Posted by | Corruption, Deception, Full Spectrum Dominance | , , | Leave a comment

Medical Price Gouging

By RALPH NADER | CounterPunch | January 15, 2014

An epidemic of sky-rocketing medical costs has afflicted our country and grown to obscene proportions. Medical bills are bloated with waste, redundancy, profiteering, fraud and outrageous over-billing. Much is wrong with the process of pricing and providing health care.

The latest in this medical cost saga comes from new data released last week by National Nurses United (NNU), the nation’s largest nurse’s organization. In a news release, NNU revealed that fourteen hospitals in the United States are charging more than ten times their costs for treatment. Specifically, for every $100 one of these hospitals spends, the charge on the corresponding bill is nearly $1,200.

NNU’s key findings note that the top 100 most expensive U.S. hospitals have “a charge to cost ratio of 765 percent and higher — more than double the national average of 331 percent.” They found that despite the enactment of “Obamacare” — the Affordable Care Act — overall hospital charges experienced their largest increase in 16 years. For-profit hospitals continue to be the worst offenders with average charges of 503 percent of their costs compared to publically-run hospitals (“…including federal, state, county, city, or district operated hospitals, with public budgets and boards that meet in public…”) which show more restraint in pricing. The average charge ratios for these hospitals are 235 percent of their costs.

According to NNU’s data, the top 10 Most Expensive Hospitals in the U.S. listed according to the huge percentage of their charges relative to their costs are:

1. Meadowlands Hospital Medical Center, Secaucus, NJ – 1192%
2. Paul B. Hall Regional Medical Center, Painsville, KY – 1186%
3. Orange Park Medical Center, Orange Park, FL – 1139%
4. North Okaloosa Medical Center, Crestview, FL – 1137%
5. Gadsden Regional Medical Center, Gadsden, AL – 1128%
6. Bayonne Medical Center, Bayonne, NJ – 1084%
7. Brooksville Regional Hospital, Brooksville, FL – 1083%
8. Heart of Florida Regional Medical Center, Davenport, FL – 1058%
9. Chestnut Hill Hospital, Philadelphia, PA – 1058%
10. Oak Hill Hospital, Spring Hill, FL – 1052%

The needless complications of the vast medical marketplace have provided far too many opportunities for profiteering. Numerous examples of hospital visit bills feature enormous overcharges on simple supplies such as over-the-counter painkillers, gauze, bandages and even the markers used to prep patients for surgery. That’s not to mention the cost of more advanced procedures and the use of advanced medical equipment which are billed at several times their actual cost. These charges have resulted in many hundreds of millions of dollars in overcharges.

When pressed for answers, many hospital representatives are quick to defer to factors out of their control. It’s the cost of providing care they might say, or perhaps infer that other vague aspects of running the business of medical treatment add up and are factored into these massive charges. Cost allocations mix treatment costs with research budgets, cash reserves, and just plain accounting gimmicks. These excuses shouldn’t fly in the United States.

Few in the medical industry will acknowledge the troubling trend. One thing is undeniably certain however — the medical marketplace is not suffering for profits. Health-care in the United States is a nearly 3 trillion dollar a year industry replete with excessive profits for many hospitals, medical supply companies, pharmaceutical companies, labs and health insurance vendors.

Americans spend more on health care than anywhere else in the world. One would hope and wish, at the least, that this enormous expenditure would provide a quality of healthcare above and beyond that found in the rest of the western world. The reality is that the results on average are no better than in France, Germany, Canada and elsewhere, which manage to provide their quality treatment without all the overcharges.

Much like our similarly wasteful, bloated military budget, the U.S. spends more on health care than the next ten countries combined — most of which cover almost all of their citizens. The United States spends $8,233 per person, per year according to a 2012 figure from the Organization for Economic Co-operation and Development (OECD). The average expenditure of the thirty three other developed nations OECD tracked is just $3,268 per person.

It gets worse. Harvard’s Malcolm Sparrow, the leading expert on health care billing fraud and abuse, conservatively estimates that 10 percent of all health care expenditure in the United States is lost to computerized billing fraud. That’s $270 billion dollars a year!

And unlike other commercial markets, where the advance of technology routinely makes costs lower, the reverse trend is in effect when providing medical care — the prices just keep soaring higher and higher. The flawed, messy Obamacare system will do little to help this worsening profit-grab crisis, which is often downright criminal in the way it exploits tragedy-stricken people and saddles them with mountains of debt.

Steven Brill’s TIME magazine cover story from February 2013 titled “Bitter Pill: Why Medical Bills Are Killing Us” gives an in-depth and highly-researched rundown of the severity of the medical cost problem and provides some of the worst, most astonishing examples of profiteering off of the plight of the sick or injured.

Here’s a fact that puts the full scope of this troubling trend into perspective — Brill writes: “The health-care industrial complex spends more than three times what the military industrial complex spends in Washington”. Specifically, the medical industry has spent $5.36 billion on lobbying in Washington D.C. since 1998. Compare that expenditure to the $1.53 billion spent lobbying by the also-bloated defense and aerospace sector.

One line summarizes the breadth of Brill’s enormous piece: “If you are confused by the notion that those least able to pay are the ones singled out to pay the highest rates, welcome to the American medical marketplace.”

Americans who can’t pay and therefore delay diagnosis and treatment are casualties. About 45,000 Americans die every year because they cannot afford health insurance according to a peer-reviewed report by Harvard Medical School researchers. No one dies in Canada, Germany, France or Britain because they do not have health insurance. They are all insured from the time they are born.

Obamacare, which has already confused and infuriated many Americans — and even some experts — with its complexity made up of thousands of pages of legislation and regulations is clearly not the answer to the problem. Long before the internet, President Lyndon Johnson enrolled 20 million elderly Americans into Medicare in six months using index cardsCanada’s single-payer system was enacted with only a thirteen page bill — and it covers everyone for less than half of the cost per capita compared to the U.S.’s system. (Check out 21 Ways the Canadian Health Care System is Better Than Obamacare)

Enacting a single payer, full Medicare-for-all system is the only chance the United States has of unwinding itself from the spider web of waste, harm, and bloat that currently comprise its highly flawed health insurance and health care systems. It’s time to cut out the corporate profiteers and purveyors of waste and fraud and introduce a system that works for everybody.

January 15, 2014 Posted by | Corruption, Economics | , , | Leave a comment

French fox in African hen house

345021_France-CAR

Press TV – January 11, 2014

The French finally got what they wanted in the restive Central African Republic – regime change.

Interim President Michel Djotodia and his Prime Minister Nicolas Tiengaye have resigned and the former French colony is now set to form a new government under the watchful eye of Paris.

Western media portray French conduct in the Central African Republic (CAR) as a benevolent force. “We are there to save lives,” said French President Francois Hollande recently.

This is like lauding a fox in a hen house. The reality is that violence and suffering have largely stemmed as a direct result of illegal French interference in that African country.

What’s more, we also can say that the violence has been deliberately provoked by the French as a cover for their real objective – regime change.

Djotodia was forced to step down after he was politically ambushed by other Francophile African leaders at a special conference convened at the end of the week in neighboring Chad.

Before the summit, French diplomats had been briefing the media and other African states that Djotodia “had to go”. The French tried to cover their tracks by saying “we are not here to give our thumbs up or down” but that is exactly what they were doing – giving the thumbs down.

French President Francois Hollande and his Foreign Minister Laurent Fabius have been carping about the CAR leader for weeks and undermining his authority. Obviously, the French wanted rid of Djotodia and his administration – and now they have gotten their illicit way. Lest we forget such interference in the sovereign affairs of another state is illegal.

Notably, just before the conference opened on Thursday in Chad, Djotodia rejected rumors of his impending resignation. In less than 24 hours, he then quit, evidently under duress.

Within minutes of Djotodia’s sacking on Friday, and even before he had returned from Chad, French military tanks had surrounded the presidential palace in the CAR capital Bangui. French Defence Minister Jean-Yves Le Drian also issued a call for Djotodia to be “replaced as soon as possible”.

Chadian President Idriss Déby had been one of the most vocal African leaders calling for Djotodia to quit. Déby, who is described as “a strong French ally” (in other words, “puppet”), was doing France’s bidding and giving an African voice to a directive from Paris, a directive which amounts to a coup d’état.

The Western media narrative, led by France, is that Djotodia “had not done enough to curb the violence” gripping the CAR. More than 1,000 people have been killed in recent weeks in sectarian clashes between Muslims and Christians. Roughly a quarter of the country’s five million population have been displaced in the fighting.

Djotodia came to power last year after Muslim rebels known as Seleka deposed the Christian president Francois Bozizé in March. Bozizé was notorious for corruption and had come to power through a French-backed military coup 11 years ago.

With major French commercial interests in the resource-rich country, in particular uranium mining, it seems that France was vexed about the new transitional government led by Michel Djotodia – the first Muslim leader of the mainly Christian country.
Djotodia’s interim administration was legally constituted last April and it was overseeing a transition with elections scheduled at the end of this year.

However, that did not seem good enough to allay the French, who wanted to exert tighter control over the political process within the CAR in order to secure favorable conditions for its commercial interests.

This is the real basis for the French military invasion, not the humanitarian pretext that the Hollande government has been trumpeting.

Last month, chaos and violence in the African country surged after France sent in its troops – allegedly to provide “humanitarian protection” in a situation where there had been no serious violence, apart from French government scaremongering of “imminent genocide”.

French military were dispatched to the CAR on December 2, three days before a French-drafted resolution was passed at the United Nations Security Council authorizing the intervention.

More French troops arrived on December 5, 2013, and only since then have the sectarian clashes in Bangui city and across the country escalated.

The conclusion is inescapable. The humanitarian crisis in the CAR was precipitated by French involvement, not prevented. A major factor for the violence is that the French military moved to unilaterally disarm the Seleka rebels while ignoring Christian vigilante groups known as Anti-Balaka.

The latter were, in effect, given a free hand to maraud Muslim communities and businesses with deadly consequences.

It is therefore obtuse and mendacious for the French government and its African clients to blame Michel Djotodia for not controlling security in his country.

The real culprit for the bloodshed and pandemonium that jolted the CAR is French interference in that country– interference that was illegal and was cynically disguised as “humanitarian.”

There are deep fears that violence against Muslim communities will increase further now that Michel Djotodia has been forced from office.

The Christian Anti-Balaka militias will feel emboldened by the French political interference. Many believe that the Anti-Balaka is being orchestrated by the former French puppet Bozizé from his exile in France.

Tragically, this is just the latest episode of misery for the Central African Republic caused by French neo-imperialist predation.

Since gaining so-called independence from France in 1960, the French have launched more covert coups and countercoups in that country than in any other former African colony.

The CAR remains politically and economically underdeveloped – despite its teeming natural wealth – precisely because of systematic French predatory exploitation.

Poverty in the Central African Republic, as in many other African countries, is a direct result of French policy, primarily due to the “franc afrique” monetary system set up at the time of independence.

This systematic poverty enables France to exploit raw materials and the people mercilessly. And when the racket comes a bit unstuck, the French send in their troops to “restore order”.

What the international community, such as the Non-Aligned Movement of over 100 nations, should be doing is to call for the prosecution of France, not applauding this fox in a hen house.

January 12, 2014 Posted by | Corruption, Deception | , , , , | Leave a comment

For the First Time, Half of Members of Congress are Millionaires… Democrats Worth more than Republicans

By Noel Brinkerhoff | AllGov | January 11, 2014

Members of Congress continued to get richer last year, resulting in more than 50% of lawmakers possessing a net worth of $1 million or more—something that’s never happened before in congressional history.

Of 534 current members of Congress, at least 268 were millionaires, according the Center for Responsive Politics’ review of financial disclosure reports filed last year.

The median net worth for the 530 lawmakers who were in Congress as of the May 2013 filing deadline was $1,008,767—up from $966,000 during the previous year.

The center also found that Democrats overall were a little wealthier than Republicans in Congress, $1.04 million versus $1 million.  Both groups saw their collective net worth go up, from $990,000 for Democrats and $907,000 for Republicans in the previous year.

Democrats in the House were richer than their GOP counterparts, $929,000 versus $884,000. House Republicans, however, could boast having the richest member: Darrell Issa of California, who has had this distinction in other years. The Viper car-alarm magnate has a net worth of $464 million.

In the Senate, the GOP caucus was noticeably wealthier than the Democratic caucus, $2.9 million versus $1.7 million.

Senate Democrats experienced a steep drop in their median net worth from $2.4 million in 2011, due in part to the loss of two multimillionaires: John Kerry of Massachusetts (net worth $248 million) and Frank Lautenberg of New Jersey ($87.5 million). Nonetheless, the four richest senators are still Democrats: Mark Warner of Virginia ($257 million), Richard Blumenthal of Connecticut ($104 million), Jay Rockefeller of West Virginia ($101 million) and Diane Feinstein of California ($68 million).

The center noted: “Members of Congress have long been far wealthier than the typical American, but the fact that now a majority of members—albeit just a hair over 50 percent—are millionaires represents a watershed moment at a time when lawmakers are debating issues like unemployment benefits, food stamps and the minimum wage, which affect people with far fewer resources, as well as considering an overhaul of the tax code.”

To Learn More:

Millionaires’ Club: For First Time, Most Lawmakers are Worth $1 Million-Plus (OpenSecrets.org)

Half of Congress Members Are Millionaires, Report Says (by Eric Lipton, New York Times)

2012 Personal Financial Disclosures

The Rich Get Richer…and So Does Congress (by Noel Brinkerhoff, AllGov)

Wealth Gap between Congress and Other Americans Widens to 9 to 1 (by Noel Brinkerhoff and David Wallechinsky, AllGov)

January 11, 2014 Posted by | Corruption | , , , , , , | Leave a comment

Saudi Arabia: A Retrograde Rentier Dictatorship and Global Terrorism

By James Petras | January 10, 2014

Saudi Arabia has all the vices and none of the virtues of an oil rich state like Venezuela. The country is governed by a family dictatorship which tolerates no opposition and severely punishes human rights advocates and political dissidents. Hundreds of billions in oil revenues are controlled by the royal despotism and fuel speculative investments the world over. The ruling elite relies on the purchase of Western arms and US military bases for protection. The wealth of productive nations is syphoned to enrich the conspicuous consumption of the Saudi ruling family. The ruling elite finances the most fanatical, retrograde, misogynist version of Islam, “Wahhabi” a sect of Sunni Islam.

Faced with internal dissent from repressed subjects and religious minorities, the Saudi dictatorship perceives threats and dangers from all sides: overseas, secular, nationalists and Shia ruling governments; internally, moderate Sunni nationalists, democrats and feminists; within the royalist cliques, traditionalists and modernizers. In response it has turned toward financing, training and arming an international network of Islamic terrorists who are directed toward attacking, invading and destroying regimes opposed to the Saudi clerical-dictatorial regime.

The mastermind of the Saudi terror network is Bandar bin Sultan, who has longstanding and deep ties to high level US political, military and intelligence officials. Bandar was trained and indoctrinated at Maxwell Air Force Base and Johns Hopkins University and served as Saudi Ambassador to the US for over two decades (1983-2005). Between 2005-2011 he was Secretary of the National Security Council and in 2012 he was appointed as Director General of the Saudi Intelligence Agency. Early on, Bandar became deeply immersed in clandestine terror operations working in liaison with the CIA. Among his numerous “dirty operations” with the CIA during the 1980s, Bandar channelled $32 million dollars to the Nicaragua Contra’s engaged in a terror campaign to overthrow the revolutionary Sandinista government in Nicaragua. During his tenure as ambassador he was actively engaged in protecting Saudi royalty with ties to the 9/11/01 bombing of the Triple Towers and the Pentagon. Suspicion that Bandar and his allies in the Royal family had prior knowledge of the bombings by Saudi terrorists (11 of the 19), is suggested by the sudden flight of Saudi Royalty following the terrorist act. US intelligence documents regarding the Saudi-Bandar connection are under Congressional review.

With a wealth of experience and training in running clandestine terrorist operations, derived from his two decades of collaboration with the US intelligence agencies, Bandar was in a position to organize his own global terror network in defense of the isolated retrograde and vulnerable Saudi despotic monarchy.

Bandar’s Terror Network

Bandar bin Sultan has transformed Saudi Arabia from an inward-looking, tribal based regime totally dependent on US military power for its survival, to a major regional center of a vast terror network, an active financial backer of right-wing military dictatorships (Egypt) and client regimes (Yemen) and military intervenor in the Gulf region (Bahrain). Bandar has financed and armed a vast array of clandestine terror operations, utilizing Islamic affiliates of Al Qaeda, the Saudi controlled Wahhabi sect as well as numerous other Sunni armed groups. Bandar is a “pragmatic” terrorist operator: repressing Al Qaeda adversaries in Saudi Arabia and financing Al Qaeda terrorists in Iraq, Syria, Afghanistan and elsewhere. While Bandar was a long-term asset of the US intelligence services, he has, more recently, taken an ‘independent course’ where the regional interests of the despotic state diverge from those of the US. In the same vein, while Saudi Arabia has a longstanding enmity toward Israel, Bandar has developed a “covert understanding” and working relationship with the Netanyahu regime, around their common enmity toward Iran and more specifically in opposition to the interim agreement between the Obama-Rohani regime.

Bandar has intervened directly or via proxies in reshaping political alignments, destabilizing adversaries and bolstering and expanding the political reach of the Saudi dictatorship from North Africa to South Asia, from the Russian Caucuses to the Horn of Africa, sometimes in concert with Western imperialism, other times projecting Saudi hegemonic aspirations.

North Africa: Tunisia, Morocco, Libya, and Egypt

Bandar has poured billions of dollars to bolster the right-wing pro-Islamic regimes in Tunisia and Morocco, ensuring that the mass pro-democracy movements would be repressed, marginalized and demobilized. Islamic extremists receiving Saudi financial support are encouraged to back the “moderate” Islamists in government by assassinating secular democratic leaders and socialist trade union leaders in opposition. Bandar’s policies largely coincide with those of the US and France in Tunisia and Morocco; but not in Libya and Egypt.

Saudi financial backing for Islamist terrorists and Al Qaeda affiliates against Libyan President Gadhafi were in-line with the NATO air war. However divergences emerged in the aftermath: the NATO backed client regime made up of neo-liberal ex-pats faced off against Saudi backed Al Qaeda and Islamist terror gangs and assorted tribal gunmen and marauders. Bandar funded Islamic extremists in Libya were bankrolled to extend their military operations to Syria, where the Saudi regime was organizing a vast military operation to overthrow the Assad regime. The internecine conflict between NATO and Saudi armed groups in Libya, spilled over and led to the Islamist murder of the US Ambassador and CIA operatives in Benghazi. Having overthrown Gadhafi, Bandar virtually abandoned interest in the ensuing blood bath and chaos provoked by his armed assets. They in turn, became self-financing – robbing banks, pilfering oil and emptying local treasuries – relatively “independent” of Bandar’s control.

In Egypt, Bandar developed, in coordination with Israel (but for different reasons), a strategy of undermining the relatively independent, democratically elected Muslim Brotherhood regime of Mohammed Morsi. Bandar and the Saudi dictatorship financially backed the military coup and dictatorship of General Sisi. The US strategy of a power-sharing agreement between the Muslim Brotherhood and the military regime, combining popular electoral legitimacy and the pro-Israel-pro NATO military was sabotaged. With a $15 billion aid package and promises of more to come, Bandar provided the Egyptian military a financial lifeline and economic immunity from any international financial reprisals. None were taken of any consequences. The military crushed the Brotherhood, jailed and threatened to execute its elected leaders. It outlawed sectors of the liberal-left opposition which it had used as cannon fodder to justify its seizure of power. In backing the military coup, Bandar eliminated a rival, democratically elected Islamic regime which stood in contrast to the Saudi despotism. He secured a like-minded dictatorial regime in a key Arab country, even though the military rulers are more secular, pro-Western, pro-Israel and less anti-Assad than the Brotherhood regime. Bandar’s success in greasing the wheels for the Egyptian coup secured a political ally but faces an uncertain future.

The revival of a new anti-dictatorial mass movement would also target the Saudi connection. Moreover Bandar undercut and weakened Gulf State unity: Qatar had financed the Morsi regime and was out $5 billion dollars it had extended to the previous regime.

Bandar’s terror network is most evident in his long-term large scale financing, arming, training and transport of tens of thousands of Islamic terrorist “volunteers” from the US, Europe, the Middle East, the Caucuses, North Africa and elsewhere. Al Qaeda terrorists in Saudi Arabia became “martyrs of Islam” in Syria. Dozens of Islamic armed gangs in Syria competed for Saudi arms and funds. Training bases with US and European instructors and Saudi financing were established in Jordan, Pakistan and Turkey. Bandar financed the major ‘rebel’ Islamic terrorist armed group, the Islamic State of Iraq and the Levant, for cross border operations.

With Hezbollah supporting Assad, Bandar directed money and arms to the Abdullah Azzam Brigades in Lebanon to bomb South Beirut, the Iranian embassy and Tripoli. Bandar directed $3 billion to the Lebanese military with the idea of fomenting a new civil war between it and Hezbollah. In co-ordination with France and the US, but with far greater funding and greater latitude to recruit Islamic terrorist, Bandar assumed the leading role and became the principle director of a three front military and diplomatic offensive against Syria, Hezbollah and Iran. For Bandar, an Islamic takeover in Syria would lead to an Islamic Syrian invasion in support of Al Qaeda in Lebanon to defeat Hezbollah in hopes of isolating Iran. Teheran would then become the target of a Saudi-Israeli-US offensive. Bandar’s strategy is more fantasy then reality.

Bandar Diverges from Washington: the Offensive in Iraq and Iran

Saudi Arabia has been an extremely useful but sometimes out of control client of Washington. This is especially the case since Bandar has taken over as Intelligence chief: a long-time asset of the CIA he has also, at times, taken the liberty to extract “favors” for his services, especially when those “favors” enhance his upward advance within the Saudi power structure. Hence, for example, his ability to secure AWACs despite AIPAC opposition earned him merit points. As did Bandar’s ability to secure the departure of several hundred Saudi ‘royalty’ with ties to the 9/11 bombers, despite a high level national security lockdown in the aftermath of the bombing.

While there were episodic transgressions in the past, Bandar moved on to more serious divergences from US policy. He went ahead, building his own terror network, directed toward maximizing Saudi hegemony – even where it conflicted with US proxies, clients and clandestine operatives.

While the US is committed to backing the right-wing Maliki regime in Iraq, Bandar is providing political, military and financial backing to the Sunni terrorist “Islamic State of Iraq and Syria”. When the US negotiated the “interim agreement” with Iran Bandar voiced his opposition and “bought” support. Saudi signed off on a billion dollar arms agreement during French President Hollande’s visit, in exchange for greater sanctions on Iran. Bandar also expressed support for Israel’s use of the Zionist power configuration to influence the Congress, to sabotage US negotiations with Iran.

Bandar has moved beyond his original submission to US intelligence handlers. His close ties with past and present US and EU presidents and political influence have encouraged him to engage in “Big Power adventures.” He met with Russian President Putin to convince him to drop his support for Syria, offering a carrot or a stick: a multi-billion dollar arms sale for compliance and a threat to unleash Chechen terrorists to undermine the Sochi Olympics. He has turned Erdogan from a NATO ally supporting ‘moderate’ armed opponents to Bashar Assad, into embracing the Saudi backed ‘Islamic State of Iraq and Syria”, a terrorist Al Qaeda affiliate. Bandar has “overlooked” Erdogan’s “opportunist” efforts to sign off oil deals with Iran and Iraq, his continuing military arrangements with NATO and his past backing of the defunct Morsi regime in Egypt, in order to secure Erdogan’s support for the easy transit of large numbers of Saudi trained terrorists to Syria and probably Lebanon.

Bandar has strengthened ties with the armed Taliban in Afghanistan and Pakistan, arming and financing their armed resistance against the US, as well as offering the US a site for a ‘negotiated departure’.

Bandar is probably supporting and arming Uighur Muslim terrorists in western China, and Chechens and Caucasian Islamic terrorists in Russia, even as the Saudi’s expand their oil agreements with China and cooperate with Russia’s Gazprom.

The only region where the Saudi’s have exercised direct military intervention is in the Gulf min-state of Bahrain, where Saudi troops crushed the pro-democracy movement challenging the local despot.

Bandar: Global Terror on Dubious Domestic Foundations

Bandar has embarked on an extraordinary transformation of Saudi foreign policy and enhanced its global influence. All to the worst. Like Israel, when a reactionary ruler comes to power and overturns the democratic order, Saudi arrives on the scene with bags of dollars to buttress the regime. Whenever an Islamic terror network emerges to subvert a nationalist, secular or Shia regime, it can count on Saudi funds and arms. What some Western scribes euphemistically describe as “tenuous effort to liberalize and modernize” the retrograde Saudi regime, is really a military upgrade of its overseas terrorist activity. Bandar uses modern techniques of terror to impose the Saudi model of reactionary rule on neighboring and distant regimes with Muslim populations.

The problem is that Bandar’s “adventurous” large scale overseas operations conflict with some of the ruling Royal family’s “introspective” style of rule. They want to be left alone to accrue hundreds of billions collecting petrol rents, to invest in high-end properties around the world, and to quietly patronize high end call girls in Washington, London and Beirut while posing as pious guardians of Medina, Mecca, and the Holy sites. So far Bandar has not been challenged, because he has been careful to pay his respects to the ruling monarch and his inner circle. He has bought and brought Western and Eastern prime ministers, presidents, and other respectable notables to Riyadh to sign deals and pay compliments to the delight of the reigning despot. Yet his solicitous behavior to overseas Al Qaeda operations, his encouraging Saudi extremists to go overseas and engage in terrorist wars, disturbs monarchical circles. They worry that Saudi trained, armed and knowledgeable terrorists — dubbed as “holy warriors” — may return from Syria, Russia, and Iraq and bomb the King’s palaces. Moreover, overseas regimes targeted by Bandar’s terror network may retaliate: Russia or Iran, Syrians, Egyptians, Pakistanis, Iraqis may just sponsor their own instruments of retaliation. Despite the hundreds of billions spent on arms purchases, the Saudi regime is very vulnerable on all levels. Apart from tribal legions, the billionaire elite have little popular support and even less legitimacy. It depends on overseas migrant labor, foreign “experts” and US military forces. The Saudi elite is also despised by the most religious of the Wahhabi clergy for allowing “infidels” on sacred terrain. While Bandar extends Saudi power abroad, the domestic foundations of rule are narrowing. While he defies US policymakers in Syria, Iran and Afghanistan, the regime depends on the US Air Force and Seventh Fleet to protect it from a growing array of adversarial regimes.

Bandar, with his inflated ego, may believe that he is a “Saladin” building a new Islamic empire, but in reality, by waving one finger his patron monarch can lead to his rapid dismissal. One too many provocative civilian bombings by his Islamic terrorist beneficiaries can lead to an international crises leading to Saudi Arabia becoming the target of world opprobrium.

In reality, Bandar bin Sultan is the protégé and successor of Bin Laden; he has deepened and systematized global terrorism. Bandar’s terror network has murdered far more innocent victims than Bin Laden. That, of course, is to be expected; after all he has billions of dollars from the Saudi treasury, training from the CIA and the handshake of Netanyahu!

January 11, 2014 Posted by | Corruption, Ethnic Cleansing, Racism, Zionism, Timeless or most popular | , , , , , | Leave a comment

Harsh Prosecution for the Little People and the Big Guys Skate

By Dave Lindorff | This Can’t Be Happening! | January 9, 2014

The US Department of “Justice” has a distinctly nuanced concept of that term, taking a tough, no-holds-barred stance when it comes to individuals — especially little people without much power or influence — and trying at all costs to avoid prosecution when it comes to the powerful, and to big corporations — especially big financial corporations. That schizoid approach to prosecution is personified in the recent actions–and inaction–of the DOJ’s man in Manhattan, US Attorney for the Southern District of New York Preet Bharara.

You remember Preet. He’s the guy who came down so hard on a deputy consul general of the Indian Consulate in New York who was accused by his office of “human trafficking.” Specifically, 39-year-old Devyani Khobragade stands accused of lying to US visa officials in New Delhi when she applied for a visa to bring an Indian maid to the US to work in her home, allegedly claiming to them that she would be paying the woman some $4500 a month, when the maid, who left the job, claimed she was paid just $573 monthly. The US prosecutor (himself a naturalized citizen and native of India who grew up in the US) had Khobragade arrested as she dropped her two children off at school, brought her to the federal lock-up in Manhattan, where she claims she was strip searched and cavity searched several times, and finally released her on $250,000 bond, to face felony charges that could potentially result in 10 years’ jail time. (Khobragade has denied the charges and claims that the maid in question was extorting her family.)

Explaining his tough approach to the case, Bharara has stated that Khobragade’s treatment under arrest was not harsh, and that she was simply subjected to “routine procedures of the US Marshal’s Service” for persons being placed in detention following arrest. In fact, he claimed she had been extended “special courtesies” such as being allowed to make multiple phone calls to assure that her children would be cared for in her absence, and being offered coffee by her arresting officers. Bharara also defended his department’s tough approach in this case saying that human trafficking is a serious crime and that “Foreign nationals brought to the United States to serve as domestic workers are entitled to the same protections against exploitation as those afforded to United States citizens.” He went on to declare that the alleged lying to visa officials and the alleged “exploitation of an individual” were something that “will not be tolerated.”

Some might immediately point out that exploitation of low-paid American workers is rampant — including in Bharara’s jurisdiction of New York–and that the Justice Department largely ignores it. (US workers routinely are defrauded out of overtime, get paid below minimum wage, are denied unemployment benefits they are owed, are forced to work in dangerous conditions, and are abused on the job and the “Justice” Department does nothing.) But even putting that huge hypocrisy aside, there’s the matter of Jamie Dimon and JPMorgan Chase.

This past week, Preet Bharara also announced that his office had reached an agreement with the nation’s largest “too-big-to-fail” bank on a fine and penalties of $2.5 billion for violating the Bank Secrecy Act. Specifically, JPMorganChase was accused of turning a blind eye to the record-breaking pyramid scheme of Wall Street scammer extraordinaire Bernie Madoff, who bilked clients out of a staggering $65 billion over two decades, largely working through one account he had at JPMorganChase.

Now, you’d think that for a crime that large and egregious, someone — and ideally it would be bank head Jamie Dimon — ought to have been frog-marched in cuffs out of JPMorganChase headquarters, and then brought down to the same lock-up Bharara had Khobragade taken to, there to be similarly given the “routine” treatment of strip searches and cavity searches that she got. (After all, Dimon became the bank’s president and chief operating officer back in July 2004, later becoming chairman and CEO too, and over that period the bank concedes there had been plenty of internal warnings about Madoff, who was essentially using the bank to execute his massive fraud.)

Nope. Didn’t happen.

In fact, while the the US Attorney’s Office claims Bharara and his prosecution team technically “filed” criminal charges against the bank (though not against any bank officials), when they met in a “congenial” setting with Dimon and his attorneys, it was agreed that there would be no criminal prosecution at all. Instead, the bank agrees to a fine of $1.7 million plus a payment of $350 million to the Comptroller of the Currency as well as some $500 million in compensation to victims, and said it would accept a “deferred prosecution agreement,” giving the bank two years to “overhaul its controls against money laundering.” After that time, all is to be forgotten, and the charges will be dropped. Under this sweetheart agreement, the bank did not have to plead guilty to anything as part of this deal, but was allowed instead to “stipulate to the facts of the case.” This is even though JPMorganChase admitted that its own office in the UK, in 2008, sent a detailed warning explaining to senior managers that Madoff’s whole operation appeared to be a scam. (Wouldn’t you get a deal like that after an arrest for pot possession or for DWI!)

Bharara insisted, at a press conference announcing the settlement and the agreement to drop any criminal prosecution against the bank, that it was a good deal. He went to great lengths to insist that the bank’s failure was “institutional,” implying that it would not be appropriate to prosecute individuals. He refused to comment on the suitability of Dimon to continue running the bank, though his office could easily have insisted on Dimon’s departure as part of any non-prosecution settlement. He also several times repeated that there were “concerns” about possible “collateral consequences” of a criminal prosecution. At one point, when questioned by a reporter, he explained that those “consequences” might include “employees being laid off, the bank failing, or shareholders losing money.” Of course, JPMorganChase failing would merely mean that the institution would be broken up, with the pieces being taken over by other institutions under supervision of the Office of Comptroller. Lost jobs? What about all the jobs lost because of Madoff’s scams? And as for shareholders, aren’t they the owners of the bank, who are supposed to be insisting that it is well run and acting in accordance with the law, not to mention looking out for fraud? If they weren’t doing that, then they deserve to lose money!

What’s really going on, though Bharara struggled mightily to avoid having to admit it, is that if you’re big enough and powerful enough, you don’t get criminally prosecuted by the DOJ.

Remember that phrase “Equal justice under the law”? It’s engraved on the front facade of the US Supreme Court an is supposed to be a fundamental American principle. Apparently it’s just a slogan though. If you’re the nation’s largest bank, or the boss of that bank, it doesn’t apply to you. Just ask US Attorney for the Southern District of New York Preet Bharara.

Maybe we should just change the name of Bharara’s parent agency to US Department of Injustice. At least that would be honest.

January 10, 2014 Posted by | Corruption, Progressive Hypocrite | , , , | Leave a comment

The GAO’s Office In The NSA Is Collecting Dust Because Congress Hasn’t Asked For A Report In Years

By Tim Cushing | Techdirt | January 8, 2014

The NSA’s defenders go to great lengths to convince everyone (the public and many angered legislators) that it operates under a tremendous amount of oversight — so much though that even THINKING about abusing its capabilities is out of the question. The leaks have repeatedly proven this assertion false as members of the supposedly stringent oversight continue to state their shock and dismay over what’s been uncovered.

Steven Aftergood at Secrecy News points out there’s another layer of oversight that’s gone unutilized for years as well.

Years ago, the Government Accountability Office, the investigative arm of Congress, conducted routine audits and investigations of the National Security Agency, such that the two agencies were in “nearly continuous contact” with one another. In the post-Snowden era, GAO could perform that oversight function once again.

“NSA advises that the GAO maintains a team permanently in residence at NSA, resulting in nearly continuous contact between the two organizations,” according to a 1994 CIA memorandum for the Director of Central Intelligence.

Why haven’t we read any damning reports from the GAO about the NSA’s abuses over the past several years? Well, apparently it’s because no one wants to know.

At a 2008 Senate hearing, Sen. Daniel Akaka asked the GAO about its relationship with NSA. “I understand that GAO even had an office at the NSA,” Sen. Akaka noted.

“We still actually do have space at the NSA,” replied David M. Walker, then-Comptroller General, the head of the GAO. “We just don’t use it. And the reason we don’t use it is we are not getting any requests [from Congress]. So I do not want to have people sitting out there twiddling their thumbs.”

There’s that oversight at work again. Idle for “years” by 2008 and no signs that anything has occurred since then. The GAO maintains an office (currently unstaffed) within the NSA but because if no one’s asking any questions, it’s not providing any answers.

If there’s something the GAO does well, it’s track down internal issues and problematic behavior. Unfortunately, it’s limited to recommending courses of action rather than mandating any serious changes, meaning its follow-up reports are generally filled with descriptions of how these audited entities failed to pursue the recommendations and (often) performed considerably worse during the interim.

On the other hand, the GAO’s reports do at least make it clear to the American public exactly what’s wrong with nearly everything the government spends its money on. It’s very limited accountability that does nothing to change the underlying agency ethos, but at least it prevents them from pretending these problems don’t exist.

Being in-house should naturally raise concerns about the GAO’s objectivity. Unfortunately, considering the nature of the agency’s intelligence work, there’s probably no way around that. But the first step in renewing this layer of oversight is to remind Congress of its existence. It has the power to order a GAO investigation, but until it does, the office will continue to gather dust and the NSA’s internal problems will worsen — or at least go unnoticed by Congress.

Aftergood points out that James Clapper has ordered the agency to be responsive to GAO inquiries, apparently in the eventuality that it ever gets back to the business of asking questions.

In Intelligence Community Directive 114, issued in 2011 following years of stagnation in GAO oversight of intelligence, DNI James Clapper instructed U.S. intelligence agencies to be responsive to GAO, at least within certain boundaries.

“It is IC policy to cooperate with the Comptroller General, through the GAO, to the fullest extent possible, and to provide timely responses to requests for information,” the DNI wrote.

Of course, Clapper’s definition of “responsive” probably differs greatly from the normally-accepted usage of the word. Having Clapper condone cooperation with an agency that exists to find flaws and misconduct is a bit underwhelming. The NSA’s top men have been less than cooperative in the many hearings since the Snowden leaks began, most often recycling old talking points and insisting on discussing it in the context of one program (Section 215) when everyone else is clearly focused on another area.

Still, whatever the GAO finds (that somehow doesn’t get blotted out with black ink) will provide more useful information for its Congressional overseers. This certainly shouldn’t be used in place of more independent oversight committees, but it should prove to be a valuable addition. The real question Congress needs to answer is why it has ignored this option for so many years.

January 8, 2014 Posted by | Corruption, Deception | , , , | Leave a comment