"In a time of universal deceit telling the truth is a revolutionary act." -George Orwell

Posts Tagged ‘Government Corruption’

In 2009 Obama Administration Committed To Creating An Unprecedented Level Of Openness In Government. In 2012 Government Censorship & Secrecy Hit All Time High

In Uncategorized on March 15, 2013 at 11:29 am

Oldspeak:“In this weeks edition of “Doublethink Theater” We have a quote from President Obama’s First day in office, January 21, 2009 “Transparency and the rule of law will be the touchstones of this presidency.“  Then this from his Memo on Transparency and Open Government: “My Administration is committed to creating an unprecedented level of openness in Government.  We will work together to ensure the public trust and establish a system of transparency, public participation, and collaboration. Openness will strengthen our democracy and promote efficiency and effectiveness in Government. Government should be transparent.  Transparency promotes accountability and provides information for citizens about what their Government is doing.  Information maintained by the Federal Government is a national asset. My Administration will take appropriate action, consistent with law and policy, to disclose information rapidly in forms that the public can readily find and use.” Fast forward to 2013 and a quote from Alexander Abdo, ACLU National Security Project Attorney: “We’ve seen a meteoric rise in the number of claims to protect secret law, the government’s interpretations of laws or its understanding of its own authority. In some ways, the Obama administration is actually even more aggressive on secrecy than the Bush administration”  And this from Federal Judge Colleen McMahon after ruling against the New York Times and ACLU in its request to see government records providing legal justification for its assassination program: “I find myself stuck in a paradoxical situation in which I cannot solve a problem because of contradictory constraints and rules — a veritable Catch-22. I can find no way around the thicket of laws and precedents that effectively allow the executive branch of our government to proclaim as perfectly lawful certain actions that seem on their face incompatible with our Constitution and laws, while keeping the reasons for their conclusion a secret.” Yes. YET ANOTHER instance of Senator Obama saying and doing one thing & President Obama saying and doing THE EXACT OPPOSITE. After authoring such transparency promoting law as The Federal Funding Accountability and Transparency Act as a Senator, President Obama’s administration has censored & denied more requests for information than ever before, while taking much longer to respond to requests in general. Upholding “secret laws”. Flouting the constitution. Making legally unchallengeable secrecy claims. Prosecuting and jailing more government whistleblowers than any other President in history. While those who’ve engage in the fraud, waste, abuse and malfeasance whistleblowers have reported, continue to do so unmolested with no fear of reprisal;  in fact, in some egregious cases actually being rewarded with promotions.  Given these precedents, you can safely infer that next Administration will be even less transparent in its operations. Less responsive to the people.  America’s Inverted Corptalitarian Kleptocracy, will continue to grow, weakening representative democracy until the country collapses under the weight of rampant greed, criminality and corruption.  All in the name of “National Security”.
“2+2=5″.
“Ignorance Is Strength”.

By Jack Gillum & Ted Bridis @ The Associated Press:

The Obama administration answered more requests from the public to see government records under the Freedom of Information Act last year, but more often than it ever has it cited legal exceptions to censor or withhold the material, according to a new analysis by The Associated Press. It frequently cited the need to protect national security and internal deliberations.

The AP’s analysis showed the government released all or portions of the information that citizens, journalists, businesses and others sought at about the same rate as the previous three years. It turned over all or parts of the records in about 65 percent of all requests. It fully rejected more than one-third of requests, a slight increase over 2011, including cases when it couldn’t find records, a person refused to pay for copies or the request was determined to be improper.

The AP examined more than 5,600 data elements measuring the administration’s performance on government transparency since Obama’s election.

People submitted more than 590,000 requests for information in fiscal 2012 — an increase of less than 1 percent over the previous year. Including leftover requests from previous years, the government responded to more requests than ever in 2012 — more than 603,000 — a 5 percent increase for the second consecutive year.

When the government withheld or censored records, it cited exceptions built into the law to avoid turning over materials more than 479,000 times, a roughly 22 percent increase over the previous year. In most cases, more than one of the law’s exceptions was cited in each request for information.

The government’s responsiveness under the FOIA is widely viewed as a barometer of the federal offices’ transparency. Under the law, citizens and foreigners can compel the government to turn over copies of federal records for zero or little cost. Anyone who seeks information through the law is generally supposed to get it unless disclosure would hurt national security, violate personal privacy or expose business secrets or confidential decision-making in certain areas.

The AP’s review comes at the start of the second term for Obama, who promised during his first week in office that the nation’s signature open-records law would be “administered with a clear presumption: In the face of doubt, openness prevails.” The review examined figures from the largest federal departments and agencies. Sunday was the start of Sunshine Week, when news organizations promote open government and freedom of information.

White House spokesman Eric Schultz said in a statement that during the past year, the government “processed more requests, decreased the backlog, improved average processing times and disclosed more information pro-actively.” Schultz said the improvements “represent the efforts of agencies across the government to meet the president’s commitment to openness. While there is more work to be done, this past year demonstrates that agencies are responding to the president’s call for greater transparency.”

In a year of intense public interest over deadly U.S. drones, the raid that killed Osama bin Laden, terror threats and more, the government cited national security to withhold information at least 5,223 times — a jump over 4,243 such cases in 2011 and 3,805 cases in Obama’s first year in office. The secretive CIA last year became even more secretive: Nearly 60 percent of 3,586 requests for files were withheld or censored for that reason last year, compared with 49 percent a year earlier.

Other federal agencies that invoked the national security exception included the Pentagon, Director of National Intelligence, NASA, Office of Management and Budget, Federal Deposit Insurance Corporation, Federal Communications Commission and the departments of Agriculture, Commerce, Energy, Homeland Security, Justice, State, Transportation, Treasury and Veterans Affairs.

U.S. courts are loath to overrule the administration whenever it cites national security. A federal judge, Colleen McMahon of New York, in January ruled against The New York Times and the American Civil Liberties Union to see records about the government’s legal justification for drone attacks and other methods it has used to kill terrorism suspects overseas, including American citizens. She cited an “Alice in Wonderland” predicament in which she was expected to determine what information should be revealed but unable to challenge the government’s secrecy claim. Part of her ruling was sealed and made available only to the government’s lawyers.

“I find myself stuck in a paradoxical situation in which I cannot solve a problem because of contradictory constraints and rules — a veritable Catch-22,” the judge wrote. “I can find no way around the thicket of laws and precedents that effectively allow the executive branch of our government to proclaim as perfectly lawful certain actions that seem on their face incompatible with our Constitution and laws, while keeping the reasons for their conclusion a secret.”

The AP could not determine whether the administration was abusing the national security exemption or whether the public was asking for more documents about sensitive subjects. Nearly half the Pentagon’s 2,390 denials last year under that clause came from its National Security Agency, which monitors Internet traffic and phone calls worldwide.

“FOIA is an imperfect law, and I don’t think that’s changed over the last four years since Obama took office,” said Alexander Abdo, an ACLU staff attorney for its national security project. “We’ve seen a meteoric rise in the number of claims to protect secret law, the government’s interpretations of laws or its understanding of its own authority. In some ways, the Obama administration is actually even more aggressive on secrecy than the Bush administration.”

The Obama administration also more frequently invoked the law’s “deliberative process” exception to withhold records describing decision-making behind the scenes. Obama had directed agencies to use it less often, but the number of such cases had surged after his first year in office to more than 71,000. After back-to-back years when figures steadily declined, as agencies followed the president’s instructions, the government cited that reason 66,353 times last year to keep records or parts of records secret.

The Homeland Security Department, which includes offices that deal with immigration files, received more than twice as many requests for records — 190,589 new requests last year — as any other agency, and it answered significantly more requests than it did in 2011. Other agencies, including the State Department, National Transportation Safety Board and Nuclear Regulatory Commission performed worse last year. The State Department, for example, answered only 57 percent of its requests, down from 75 percent a year earlier.

U.S. Citizenship and Immigration Services drove a dramatic increase in the number of times DHS censored immigration records under exceptions to police files containing personal information and law enforcement techniques. The agency invoked those exemptions more than 136,000 times in 2012, compared with more than 75,000 a year earlier. Even though USCIS is not a law-enforcement agency, officials used the exceptions specifically reserved for law enforcement.

Under the law, a citizen can ask the government to reconsider its decision to censor or withhold materials. In the roughly 11,000 such instances last year where that happened, the government prevailed just under half the time. In about 3,400 cases the government turned over at least some additional information. These administrative appeals took about five months each.

The only recourse after such an appeal is an expensive lawsuit or to ask the government’s FOIA mediator, the U.S. Office of Government Information Services, to intervene.

The AP’s analysis also found that the government generally took longer to answer requests. Some agencies, such as the Health and Human Services Department, took less time than the previous year to turn over files. But at the State Department, for example, even urgent requests submitted under a fast-track system covering breaking news or events when a person’s life was at stake took an average two years to wait for files.

Journalists and others who need information quickly to report breaking news fared worse last year. The rate at which the government granted so-called expedited processing, which moves an urgent request to the front of the line for a speedy answer, fell from 24 percent in 2011 to 17 percent last year. The CIA denied every such request last year.

Under increased budget pressure across the government, agencies more often insisted that people pay search and copying fees. It waived costs in 59 percent of requests, generally when the amount was negligible or the release of the information is in the public interest, a decline from 64 percent of cases a year earlier. At the Treasury Department, which faced questions about its role in auto bailouts and stimulus programs during Obama’s first term, only one in five requests were processed at no charge. A year earlier, it granted more than 75 percent of fee waivers. The CIA denied every request last year to waive fees.

The 33 agencies that AP examined were: Agency for International Development, CIA, Agriculture Department, Commerce Department, Consumer Product Safety Commission, Defense Department, Education Department, Energy Department, Department of Health and Human Services, Department of Homeland Security, Department of Housing and Urban Development, Interior Department, Justice Department, Labor Department, State Department, Transportation Department, Treasury Department, Department of Veterans Affairs, Environmental Protection Agency, Federal Communications Commission, Federal Deposit Insurance Corporation, Federal Election Commission, Federal Trade Commission, NASA, National Science Foundation, National Transportation Safety Board, Nuclear Regulatory Commission, Office of Management and Budget, Office of the Director of National Intelligence, Securities and Exchange Commission, Small Business Administration, the Social Security Administration and the U.S. Postal Service.

Follow Jack Gillum on Twitter: http://twitter.com/jackgillum

 

 

Lords of Disorder: Billions For Wall Street, Sacrifice For Everyone Else

In Uncategorized on March 7, 2013 at 5:38 pm

Lloyd C. Blankfein.Oldspeak:”“This bank is anti-fragile, we actually benefit from downturns.”-Jamie Dimon of JPMorgan ChaseThe term “antifragile” was coined by maverick financier & analyst Nassim Taleb, whose book of the same name is subtitled “Things That Gain From Disorder.” That’s a good description of JPMorgan Chase and the nation’s other megabanks… These institutions are designed to prey off economic misery. They suppress genuine market forces in order to thrive, and they couldn’t do it without our ongoing help. The Treasury Department and the Federal Reserve are making it happen.” -Richard Eskow. One look no further than how Mr. Dimon and his sociopathic corporation  profits off the misery of the poverty stricken by administering food stamp benefits to see his demented thought in practice. “A catastrophe for you and I usually presents an opportunity for the Titans of capital. And the grievous economic crisis affecting so many American families is no exception — big business has found a number of ways to profit, directly, from Main Street’s economic pain. Like vultures descending on a rotting corpse, they’ve come up with a variety of innovative methods to pull the last scraps of meat off the bones of America’s middle-class” -Joshua Holland. It’s very clear if one chooses to look. The corprocratic controllers of our political class and economic systems, profit from disorder, downturns, and catastrophes. Money is being redirected  from the people and real economy via austerity programs to prop up and sustain these failed, morally and spiritually bankrupt enterprises.  Knowing this, how logical is it to conclude that obviously deleterious political and economic policies that have us hurtling toward economic and ecological catastrophe will be changed to benefit the people? Not very. The problem is systemic. The systems around which we organize our societies must be fundamentally changed. All the nibbling around the edges that passes for sound policy is largely illusory.If we hope to survive as civilization we can no longer allow merchants of death and disorder who dominate the Military-Financial-Political Industrial Complex to reign as Lords of Disorder.”

By Richard Eskow @ The Campaign For Americas Future:

The President’s “sequester” offer slashes non-defense spending by $830 billion over the next ten years. That happens to be the precise amount we’re implicitly giving Wall Street’s biggest banks over the same time period.

We’re collecting nothing from the big banks in return for our generosity.  Instead we’re demanding sacrifice from the elderly, the disabled, the poor, the young, the middle class – pretty much everybody, in fact, who isn’t “too big to fail.”

That’s injustice on a medieval scale, served up with a medieval caste-privilege flavor. The only difference is that nowadays injustices are presented with spreadsheets and PowerPoints, rather than with scrolls and trumpets and kingly proclamations.

And remember: The White House represents the liberal side of these negotiations.

The Grandees

The $83 billion ‘subsidy’ for America’s ten biggest banks first appeared in an editorial from Bloomberg News – which, as the creation of New York’s billionaire mayor Michael Bloomberg, is hardly a lefty outfit.  That editorial drew upon sound economic analyses to estimate the value of the US government’s implicit promise to bail these banks out.

Then it showed that, without that advantage, these banks would not be making a profit at all.

That means that all of those banks’ CEOs, men (they’re all men) who preen and strut before the cameras and lecture Washington on its profligacy, would not only have lost their jobs and fortunes in 2008 because of their incompetence – they would probably lose their jobs again today.

Tell that to Jamie Dimon of JPMorgan Chase, or Lloyd Blankfein of Goldman Sachs, both of whom have told us it’s imperative that we cut social programs for the elderly and disabled to “save our economy.” The elderly and disabled have paid for those programs – just as they paid to rescue Jamie Dimon and Lloyd Blankfein, and just as they implicitly continue to pay for that rescue today.

Dimon, Blankfein and their peers are like the grandees of imperial Spain and Portugal. They’ve been given great wealth and great power over others, not through native ability but by the largesse of the Throne.

Lords of Disorder

Just yesterday, in a rare burst of candor, Dimon said this to investors on a quarterly earnings call: “This bank is anti-fragile, we actually benefit from downturns.”

It’s true, of course. Other corporations – in fact, everybody else – has to survive or fail in real-world conditions. But Dimon and his peers are wrapped in a protective force field which was created by the people, of the people, and for … well, for Dimon and his peers.

The term “antifragile” was coined by maverick financier and analyst Nassim Taleb, whose book of the same name is subtitled “Things That Gain From Disorder.” That’s a good description of JPMorgan Chase and the nation’s other megabanks.

Arbitraging Failure

Dimon’s comment was another way of saying that his bank, and everything it represents, is The Shock Doctrine made manifest. The nation’s megabanks are arbitraging their own failures, and the economic crises that flow from those failures.

These institutions are designed to prey off economic misery. They suppress genuine market forces in order to thrive, and they couldn’t do it without our ongoing help. The Treasury Department and the Federal Reserve are making it happen.

We who have made these banks “antifragile” have crowned their leaders our Lords of Disorder.

Once Dimon told reporters that he explained to his seven-year-old daughter what a financial crisis is – “something that happens … every five to seven years,” which “we need to do a better job” managing.

Thanks to fat political contributions, Dimon manages them well. So do his peers. Misery is the business model. And by Dimon’s reckoning another shock’s coming any day now.

Money For Nothing

Bloomberg’s use of the word ‘subsidy’ in this instance can be slightly misleading. Public institutions don’t issue $83 billion in checks to Wall Street’s biggest banks every year. But they didn’t let them fail as they should have – through an orderly liquidation – after they created the crisis of 2008 through fraud and chicanery. Instead it allowed them to prosper from it, creating that $83 billion implicit guarantee.

As we detailed in 2011, the TARP program didn’t “make money,” either. Banks received a free and easy trillion-plus dollars from our public institution, on terms that amounted to a gift worth tens of billions, and possibly hundreds of billions.

That gift prevented them from failing. In private enterprise, this kind of rescue is only given in return for part ownership or other financial concessions. But our government asked for nothing of the kind.

Unpaid Debts

Breaking up the big banks would have protected the public from more harm at their hands. That didn’t happen.

Government institutions could have imposed a financial transaction tax, whose revenue could be used to repair the harm the banks caused while at the same time discouraging runaway gambling.  They still could.

They could have imposed fees on the largest banks to offset the $83 billion per year advantage we’ve given them. They still could.

But they haven’t. This one-sided giveaway is the equivalent of an $83 billion gift for Wall Street each and every year.

Cut and Paste

$83 billion per year: Our current budget debate is framed in ten-year cycles, which means that’s $830 billion in Sequester Speak.  You’d think our deficit-obsessed capital would be trying to collect that very reasonable amount from Wall Street. Instead the White House is proposing $130 billion in Social Security cuts, $400 in Medicare reductions, $200 billion in “non-health mandatory savings,” and $100 billion in non-defense discretionary cuts.

That adds up to exactly $830 billion.

No doubt there is genuine waste that could be cut. But $830 billion, or some portion of it, could be used to grow our economy and brings tens of millions of Americans out of the ongoing recession that is their daily reality, even as the Lords of Disorder continue to prosper. It could be used for educating our young people and helping them find work, for reducing the escalating number of people in poverty, for addressing our crumbling infrastructure, for giving people decent jobs.

It’s going to Wall Street instead.

Trillion-Dollar Tribute

The right word for that is tribute. As in, “a payment by one ruler or nation to another in acknowledgment of submission …” or “an excessive tax, rental, or tariff imposed by a government, sovereign, lord, or landlord … an exorbitant charge levied by a person or group having the power of coercion.” (Courtesy Merriam-Webster)

In this case the tribute is made possible, not by military occupation, but by the hijacking of our political process by the corrupting force of corporate contributions.

The fruits of that victory are rich: Bank profits are at near-record highs. Most of the country is still struggling to dig out from the wreckage they created but, as Demos’ Policy Shop puts it, “for the banks it’s 2006 all over again.”

On Bended Knee

“Millions for defense,” they said in John Adams’ day, “but not one cent for tribute.”

Today we’re paying for both. That doesn’t leave much for the elderly, the disabled, the impoverished, the children, or anybody else who doesn’t “benefit from disorder.” Nobody’s fighting for them in this budget battle.

That leaves the public with a clear choice: Demand solutions that are more just and democratic – or submit willingly to the Lords of Disorder.

Austerity Measures, U.S. Style, Exposed

In Uncategorized on February 21, 2013 at 8:37 pm

Quarter.We have abandoned the common good. We have been stripped of our rights and voice. Corporations write our laws and determine how we structure our society. We have all become victims. There are no politicians or institutions, no political parties or courts, that are independent enough or strong enough to resist the corporate onslaught. Greater and greater numbers of human beings will be consumed. The poor, the vulnerable, the undocumented, the weak, the elderly, the sick, the children will go first. And those of us watching helplessly outside the gates will go next.” -Chris Hedges. When you understand the key purposes for Austerity Measures, referred to euphemistically in the U.S. as “Sequestration”,  “Deficit Reduction”, “Entitlement Reform”, “Fiscal Responsibility” and “Increasing payroll tax “, are to “(1) shift the burden of paying for crisis and bailouts (from the creditors/creators of the crisis), onto the total population, (2) reduce the economic footprint (privatization/monetization) of the government, and (3) reduce creditors(/crisis creators)‘ concerns about rising US debt levels.Richard Wolff, you begin to see that this urgent and well reported “debate” over Sequestration is just the latest installment of U.S. Government Kabuki Theater.  The White House and Congress twice agreed to go into sequestration in 2011.  Both sides are not talking, they are preparing for the list of cuts and positioning for the public relations disaster afterwards. There is a high probability that these cuts will go into effect. Even in the face of mountains of evidence from past and present day Europe that austerity does not enable economic growth, but does increase the potential for violence and social unrest. Austerity functions primarily as means by which the international banking cartels and the transnational corporate network ensures attractive returns on their investments/looting/fraud/market manipulation. It enriches those in the 1% at the expense of the poor, elderly, & disenfranchised. It fails to address one essential factor that accompanies the current depression. Inequality. Inequality and wealth concentration has equaled and exceeded levels reached in the last Great Depression. Raising the minimum wage a paltry $1.75 will have no significant effect on inequality or quality of life  among the nearly 1 in 2 Americans living in or near poverty.  There is no addressing of the hidden tax of  rising food prices created by the creditors/creators of the crisis’ unregulated and dangerous speculation on commodities markets. Austerity measures will actually make life significantly worse for the poor and less fortunate, creating more sick people, less housing, more hunger, less safety. This is the first in a series of  points of danger for our economy, enshrined in a series of laws which are the result of every accommodation the president has made over the last year and a half. Over the next 10 weeks, we will lurch from crisis to crisis, and the economic decision-making apparatus will remain in chaos through his deference. The “least” among us are being sacrificed. Who will be next?”

By Richard D. Wolff @ Truthout:

Austerity policies include various combinations primarily of government spending cuts and secondarily of general tax increases. Republicans and Democrats have endorsed austerity since 2010. Austerity was the result of their deal on taxes last December 31: increasing the payroll tax on wages and salaries from 4.2 to 6.2 percent. Austerity is what they are negotiating now in regard to federal spending cuts.

After 2010, with “recovery” underway for them following bailouts for them, large private capitalist interests focused on three key interests. First, they wanted to ensure that the bailouts’ costs were not paid for by higher taxes on corporations and the rich. By stressing government spending cuts and broad-based tax increases, austerity policies serve that interest. Second, they worried about crisis-heightened government economic intervention and power and wanted to reduce them back to pre-crisis levels. Austerity’s focus on reduced government spending lessens the government’s economic footprint. Third, because big banks and other large capitalists are among the major creditors of the US government, they wanted signs that their crisis-increased holdings of US debt were safe investments for them. Austerity policies provide just those signs, as we shall show.

Austerity in the US, unlike in Europe, is renamed and packaged for the public as “deficit reduction programs” or “fiscal responsibility.” Distractions such as “fiscal cliffs” and “debt ceilings” focus public attention on mere secondary details of austerity. Politicians, media and academics use such distractions to wrangle over whose taxes will go up how much and which recipients of government spending will suffer what size cuts. They do not debate austerity itself; that is, they do not debate very idea of raising mass taxes and cutting spending in a deep and long economic downturn. They do not explore the interests served and undermined by any austerity policy. So we will.

Austerity promoters repeatedly insist that the dominant economic problem today is government budget deficits. They ignore why those deficits occurred (the crisis plus bailouts). They demand that both parties and the media endorse austerity because cuts in government spending and increased taxes will reduce deficits. They hype austerity as the solution all must embrace. Otherwise, they fear, a different and dangerous logic might win popular support. In that logic, since capitalism regularly causes crises that cause deficits, another solution for deficits would be changing from capitalism to another economic system not beset by regular crises.

Austerity policies, we are told, will reduce deficits and thereby meet what “the credit market” demands. In other words, those who have lent to the US government (by buying its debt securities) want guarantees of interest and repayment. By cutting government spending and raising taxes, austerity policies redirect government funds to the government’s creditors, thereby reassuring them.

Distracting references to an anonymous “market” avoid identifying the government’s creditors. However, major creditors holding US public debt are easy to list: large banks, insurance companies, large corporations, wealthy individuals and central banks around the world. Austerity justified as satisfying “the market” in fact serves those US creditors first and foremost.

Austerity is thus the policy preferred by the private capitalist interests that (1) brought on the crisis, (2) secured the government bailouts almost exclusively for themselves, and (3) are that government’s chief creditors. Led by major banks, those interests now threaten the government (that just bailed them out) with higher interest rates or no more credit unless it imposes higher taxes (mostly on others) and reduced spending (mostly on others) to lower its deficits. Distracting struggles over “fiscal cliffs” and “debt ceilings” serve nicely to disguise the reality that both parties’ austerity policies represent and illustrate gross government subservience to large capitalists.

Austerity, US style, has its Keynesian economist critics. They point out that the United States has been able to borrow trillions at historically low interest rates through this crisis. US deficits have not worried “the market” at all. Policies should therefore not be driven by deficits. Keynesians insist that raising mass taxes and cutting spending during an economic downturn will reduce outlays on goods and services by taxpayers and government, thereby worsening unemployment. They thus ridicule the argument that austerity, by cutting deficits, will stimulate investment by capitalists.

For Keynesians, austerity is thus unneeded and counterproductive. They prefer to exit the crisis by more stimulus (lower taxes and higher government spending) funded by higher deficits. The resulting economic growth, they believe, will automatically lower government budgetary imbalance. The government can then later, if and when needed, impose tax increases and reduce government spending to shrink deficits. In a growing economy, austerity policies avoid the devastating effects they have in depressed economies (as shown by the recent histories of Greece, Portugal, the UK and others).

Setting aside the question of the validity of Keynesian arguments, they miss key purposes of austerity policies. Those policies do not primarily seek to overcome crisis or resume economic growth. Rather, as argued above, they aim chiefly to (1) shift the burden of paying for crisis and bailouts onto the total population, (2) reduce the economic footprint of the government, and (3) reduce creditors’ concerns about rising US debt levels. If austerity policies achieve these objectives, their failure to end the crisis quickly is a price that corporations and the rich are more than happy to pay (or rather, have others pay).

That Republicans and Democrats concur on austerity and differ only on its secondary details testifies to what they share. Both depend financially on capitalist corporations and their top executives. Both serve and never question capitalism. For all the victims of capitalism today – the unemployed, those foreclosed out of their homes, those with reduced job benefits and job security, students with unsustainable schooling debts and poor job prospects, millions without medical insurance, and so on – supporting those parties perpetuates their victimization.

 

You Can Go To Jail For Walking Between Subway Cars. No Jail For HSBC After Laundering 800 Million For Drug Cartels & Al-Qaeda

In Uncategorized on December 14, 2012 at 4:13 pm

http://i.ytimg.com/vi/B7EGhw1-Q54/0.jpgOldspeak: “The banking corporation HSBC has escaped indictment for laundering billions of dollars for Mexican drug cartels and groups linked to al-Qaeda. Despite evidence of wrongdoing, the U.S. Department of Justice has allowed the bank to avoid prosecution and pay a $1.9 billion fine. No top HSBC officials will face charges, either.” -Amy GoodmanWhen your most elite, most powerful members of the society adopt a strategy of plundering, then they will develop a morality that doesn’t simply permit plundering, but valorizes it. And when that happens, the moral structures of the society will inevitably deteriorate. In the upper classes that leads to polite looting. In the under classes that leads to street looting. -William K. Black  This is the nature of Inverted Totalitarian Kleptocracy. Blatant, rampant and repeated, spectacular violations of the law by those in the “inner party” go unpunished.  Brutal, unyielding, heavy handed, clinical enforcement of the law for those in the “outer party” and “proles” for the most ridiculously dubious “laws”.  HSBC joins an impressive list, Bank Of America, Citigroup, Wachovia, Wells Fargo, all found to be laundering money for illegal foreign organizations. Why is HSBC laundering money for known affiliates of terrorists? How is this organization not guilty of “material support for terrorism”, for which untold Muslims and anti-government activists are disappeared regularly? And no one goes to jail. As long as corporations fiance elected officials, write regulations and the legislation that establishes regulations, madness like this will continue. And get worse.

By Matt Taibbi @ Rolling Stone:

If you’ve ever been arrested on a drug charge, if you’ve ever spent even a day in jail for having a stem of marijuana in your pocket or “drug paraphernalia” in your gym bag, Assistant Attorney General and longtime Bill Clinton pal Lanny Breuer has a message for you: Bite me.

Breuer this week signed off on a settlement deal with the British banking giant HSBC that is the ultimate insult to every ordinary person who’s ever had his life altered by a narcotics charge. Despite the fact that HSBC admitted to laundering billions of dollars for Colombian and Mexican drug cartels (among others) and violating a host of important banking laws (from the Bank Secrecy Act to the Trading With the Enemy Act), Breuer and his Justice Department elected not to pursue criminal prosecutions of the bank, opting instead for a “record” financial settlement of $1.9 billion, which as one analyst noted is about five weeks of income for the bank.

The banks’ laundering transactions were so brazen that the NSA probably could have spotted them from space. Breuer admitted that drug dealers would sometimes come to HSBC’s Mexican branches and “deposit hundreds of thousands of dollars in cash, in a single day, into a single account, using boxes designed to fit the precise dimensions of the teller windows.”

This bears repeating: in order to more efficiently move as much illegal money as possible into the “legitimate” banking institution HSBC, drug dealers specifically designed boxes to fit through the bank’s teller windows. Tony Montana’s henchmen marching dufflebags of cash into the fictional “American City Bank” in Miami was actually more subtle than what the cartels were doing when they washed their cash through one of Britain’s most storied financial institutions.

Though this was not stated explicitly, the government’s rationale in not pursuing criminal prosecutions against the bank was apparently rooted in concerns that putting executives from a “systemically important institution” in jail for drug laundering would threaten the stability of the financial system. The New York Times put it this way:

Federal and state authorities have chosen not to indict HSBC, the London-based bank, on charges of vast and prolonged money laundering, for fear that criminal prosecution would topple the bank and, in the process, endanger the financial system.

It doesn’t take a genius to see that the reasoning here is beyond flawed. When you decide not to prosecute bankers for billion-dollar crimes connected to drug-dealing and terrorism (some of HSBC’s Saudi and Bangladeshi clients had terrorist ties, according to a Senate investigation), it doesn’t protect the banking system, it does exactly the opposite. It terrifies investors and depositors everywhere, leaving them with the clear impression that even the most “reputable” banks may in fact be captured institutions whose senior executives are in the employ of (this can’t be repeated often enough) murderersand terrorists. Even more shocking, the Justice Department’s response to learning about all of this was to do exactly the same thing that the HSBC executives did in the first place to get themselves in trouble – they took money to look the other way.

And not only did they sell out to drug dealers, they sold out cheap. You’ll hear bragging this week by the Obama administration that they wrested a record penalty from HSBC, but it’s a joke. Some of the penalties involved will literally make you laugh out loud. This is from Breuer’s announcement:

As a result of the government’s investigation, HSBC has . . . “clawed back” deferred compensation bonuses given to some of its most senior U.S. anti-money laundering and compliance officers, and agreed to partially defer bonus compensation for its most senior officials during the five-year period of the deferred prosecution agreement.

Wow. So the executives who spent a decade laundering billions of dollars will have to partially defer their bonuses during the five-year deferred prosecution agreement? Are you fucking kidding me? That’s the punishment? The government’s negotiators couldn’t hold firm on forcing HSBC officials to completely wait to receive their ill-gotten bonuses? They had to settle on making them “partially” wait? Every honest prosecutor in America has to be puking his guts out at such bargaining tactics. What was the Justice Department’s opening offer – asking executives to restrict their Caribbean vacation time to nine weeks a year?

So you might ask, what’s the appropriate financial penalty for a bank in HSBC’s position? Exactly how much money should one extract from a firm that has been shamelessly profiting from business with criminals for years and years? Remember, we’re talking about a company that has admitted to a smorgasbord of serious banking crimes. If you’re the prosecutor, you’ve got this bank by the balls. So how much money should you take?

How about all of it? How about every last dollar the bank has made since it started its illegal activity? How about you dive into every bank account of every single executive involved in this mess and take every last bonus dollar they’ve ever earned? Then take their houses, their cars, the paintings they bought at Sotheby’s auctions, the clothes in their closets, the loose change in the jars on their kitchen counters, every last freaking thing. Take it all and don’t think twice. And then throw them in jail.

Sound harsh? It does, doesn’t it? The only problem is, that’s exactly what the government does just about every day to ordinary people involved in ordinary drug cases.

It’d be interesting, for instance, to ask the residents of Tenaha, Texas what they think about the HSBC settlement. That’s the town where local police routinely pulled over (mostly black) motorists and, whenever they found cash, offered motorists a choice: They could either allow police to seize the money, or face drug and money laundering charges.

Or we could ask Anthony Smelley, the Indiana resident who won $50,000 in a car accident settlement and was carrying about $17K of that in cash in his car when he got pulled over. Cops searched his car and had drug dogs sniff around: The dogs alerted twice. No drugs were found, but police took the money anyway. Even after Smelley produced documentation proving where he got the money from, Putnam County officials tried to keep the money on the grounds that he could have used the cash to buy drugs in the future.

Seriously, that happened. It happens all the time, and even Lanny Breuer’s own Justice Deparment gets into the act. In 2010 alone, U.S. Attorneys’ offices deposited nearly $1.8 billion into government accounts as a result of forfeiture cases, most of them drug cases. You can see the Justice Department’s own statistics right here:

 Justice Department’s own statistics
Justice Department

If you get pulled over in America with cash and the government even thinks it’s drug money, that cash is going to be buying your local sheriff or police chief a new Ford Expedition tomorrow afternoon.

And that’s just the icing on the cake. The real prize you get for interacting with a law enforcement officer, if you happen to be connected in any way with drugs, is a preposterous, outsized criminal penalty. Right here in New York, one out of every seven cases that ends up in court is a marijuana case.

Just the other day, while Breuer was announcing his slap on the wrist for the world’s most prolific drug-launderers, I was in arraignment court in Brooklyn watching how they deal with actual people. A public defender explained the absurdity of drug arrests in this city. New York actually has fairly liberal laws about pot – police aren’t supposed to bust you if you possess the drug in private. So how do police work around that to make 50,377 pot-related arrests in a single year, just in this city? Tthat was 2010; the 2009 number was 46,492.)

“What they do is, they stop you on the street and tell you to empty your pockets,” the public defender explained. “Then the instant a pipe or a seed is out of the pocket – boom, it’s ‘public use.’ And you get arrested.”

People spend nights in jail, or worse. In New York, even if they let you off with a misdemeanor and time served, you have to pay $200 and have your DNA extracted – a process that you have to pay for (it costs 50 bucks). But even beyond that, you won’t have search very far for stories of draconian, idiotic sentences for nonviolent drug crimes.

Just ask Cameron Douglas, the son of Michael Douglas, who got five years in jail for simple possession. His jailers kept him in solitary for 23 hours a day for 11 months and denied him visits with family and friends. Although your typical non-violent drug inmate isn’t the white child of a celebrity, he’s usually a minority user who gets far stiffer sentences than rich white kids would for committing the same crimes – we all remember the crack-versus-coke controversy in which federal and state sentencing guidelines left (predominantly minority) crack users serving sentences up to 100 times harsher than those meted out to the predominantly white users of powdered coke.

The institutional bias in the crack sentencing guidelines was a racist outrage, but this HSBC settlement blows even that away. By eschewing criminal prosecutions of major drug launderers on the grounds (the patently absurd grounds, incidentally) that their prosecution might imperil the world financial system, the government has now formalized the double standard.

They’re now saying that if you’re not an important cog in the global financial system, you can’t get away with anything, not even simple possession. You will be jailed and whatever cash they find on you they’ll seize on the spot, and convert into new cruisers or toys for your local SWAT team, which will be deployed to kick in the doors of houses where more such inessential economic cogs as you live. If you don’t have a systemically important job, in other words, the government’s position is that your assets may be used to finance your own political disenfranchisement.

On the other hand, if you are an important person, and you work for a big international bank, you won’t be prosecuted even if you launder nine billion dollars. Even if you actively collude with the people at the very top of the international narcotics trade, your punishment will be far smaller than that of the person at the very bottom of the world drug pyramid. You will be treated with more deference and sympathy than a junkie passing out on a subway car in Manhattan (using two seats of a subway car is a common prosecutable offense in this city). An international drug trafficker is a criminal and usually a murderer; the drug addict walking the street is one of his victims. But thanks to Breuer, we’re now in the business, officially, of jailing the victims and enabling the criminals.

This is the disgrace to end all disgraces. It doesn’t even make any sense. There is no reason why the Justice Department couldn’t have snatched up everybody at HSBC involved with the trafficking, prosecuted them criminally, and worked with banking regulators to make sure that the bank survived the transition to new management. As it is, HSBC has had to replace virtually all of its senior management. The guilty parties were apparently not so important to the stability of the world economy that they all had to be left at their desks.

So there is absolutely no reason they couldn’t all face criminal penalties. That they are not being prosecuted is cowardice and pure corruption, nothing else. And by approving this settlement, Breuer removed the government’s moral authority to prosecute anyone for any other drug offense. Not that most people didn’t already know that the drug war is a joke, but this makes it official.

By Amy Goodman & Juan Gonzalez @ Democracy Now:

JUAN GONZÁLEZ: Well, let’s go on to HSBC. The banking giant has escaped indictment for laundering billions of dollars for Mexican drug cartels and groups linked to al-Qaeda. The bank reportedly supplied a billion dollars to a firm whose founder had ties to al-Qaeda and shipped billions in cash from Mexico to the United States despite warnings the money was coming from drug cartels. Earlier this year, a Senate investigation concluded that HSBC provided a, quote, “gateway for terrorists to gain access to U.S. dollars and the U.S. financial system.”

Despite evidence of wrongdoing, the Justice Department has allowed the bank to avoid prosecution and pay a $1.9 billion fine. No top HSBC officials will face charges. While it’s reportedly the largest penalty ever paid by a bank, the deal has come under wide criticism. Officials reportedly agreed to seek the fine over concerns that criminal charges would have hurt the global financial system.

Loretta Lynch is U.S. attorney for the Eastern District of New York.

LORETTA LYNCH: We are here today to announce the filing of criminal charges against HSBC Bank, both its U.S. entity, HSBC U.S., and the parent HSBC group, for its sustained and systemic failure to guard against the corruption of our financial system by drug traffickers and other criminals and for evading U.S. sanctions law. HSBC, as you know, is one of the largest financial institutions in the world, with affiliates and personnel spanning the globe. Yet during the relevant time periods, they failed to comply with the legal requirements incumbent on all U.S. financial institutions to have in place compliance mechanisms and safeguards to guard against being used for money laundering.

HSBC has admitted its guilt to the four-count information filed today, which sets forth two violations of the Bank Secrecy Act, a violation of the International Emergency Economic Powers Act, or IEEPA, and violation of the Trading with the Enemy Act. As part of its resolution of these charges, HSBC has agreed to forfeit $1.256 billion, the largest forfeiture amount ever by a financial institution for a compliance failure.

AMY GOODMAN: That was U.S. Attorney Loretta Lynch.

Meanwhile, HSBC Group Chief Executive Stuart Gulliver said in a statement, quote, “We accept responsibility for our past mistakes. We have said we are profoundly sorry for them.” He added the bank had, quote, “taken extensive and concerted steps to put in place the highest standards for the future.”

News of HSBC’s fine comes as three low-level traders were arrested in London as part of an international investigation into 16 international banks accused of rigging a key global interest rate used in contracts worth trillions of dollars. The London Interbank Offered Rate, known as Libor, is the average interest rate at which banks can borrow from each other. Some analysts say it defines the cost of money. The benchmark rate sets the borrowing costs of everything from mortgages to student loans to credit card accounts.

Well, for more on the latest bank scandals, we’re joined by Matt Taibbi, contributing editor for Rolling Stone magazine. His latest book is Griftopia: A Story of Bankers, Politicians, and the Most Audacious Power Grab in American History.

Now, how did Forbes put it, Matt? “What’s a bank got to do to get into some real trouble around here?”

MATT TAIBBI: Exactly, exactly. And what’s amazing about that is that’s Forbes saying that. I mean, universally, the reaction, even in—among the financial press, which is normally very bank-friendly and gives all these guys the benefit of the doubt, the reaction is, is “What do you have to do to get a criminal indictment?” What HSBC has now admitted to is, more or less, the worst behavior that a bank can possibly be guilty of. You know, they violated the Trading with the Enemy Act, the Bank Secrecy Act. And we’re talking about massive amounts of money. It was $9 billion that they failed to supervise properly. These crimes were so obvious that apparently the cartels in Mexico specifically designed boxes to put cash in so that they would fit through the windows of HSBC teller windows. So, it was so out in the open, these crimes, and there’s going to be no criminal prosecution whatsoever, which is incredible.

JUAN GONZÁLEZ: And emails found where bank officials were instructing officials in Iran and in some other countries at how best to hide their efforts to move money into their system?

MATT TAIBBI: Exactly, yeah, and that’s true at HSBC, and apparently we have a very similar scandal involving another British bank, Standard Chartered, which also paid an enormous fine recently for laundering money for—through Iran. This, again, comes on the heels of the Libor scandal, which has already caught up two major British banks—the Royal Bank of Scotland and Barclays. So, you have essentially all of the major British banks now are inveigled in these enormous scandals. We have a couple of arrests, you know, today involving low-level people in the Libor thing, but it doesn’t look like any major players are going to be indicted criminally for any of this.

JUAN GONZÁLEZ: And this whole argument that the bank is too big to indict because of the threat to the world financial system, most people don’t know that HSBC stands for Hong Kong and Shanghai Banking Corporation. It’s a British bank that goes back to the early days of British colonialism in Asia.

MATT TAIBBI: Sure.

JUAN GONZÁLEZ: And is it too big to be indicted?

MATT TAIBBI: The amazing thing about that rationale is that it’s exactly the opposite of the truth. The message that this sends to everybody, when banks commit crimes and nobody is punished for it, is that you can do it again. You know, if there’s no criminal penalty for committing even the most obvious kinds of crimes, that tells everybody, investors all over the world, that the banking system is inherently unsafe. And so, the message is, this is not a move to preserve the banking system at all. In fact, it’s incredibly destructive. It undermines the entire world confidence in the banking system. It’s an incredible decision that, again, is met with surprise even with—by people in the financial community.

AMY GOODMAN: On Tuesday, Thomas Curry, head of the Office of the Comptroller of the Currency, the lead regulator for HSBC in the U.S., defended the settlement.

THOMAS CURRY: These actions send a strong message to the bank and to the financial services industry to make compliance with the law a priority to safeguard their institutions from being misused in ways that threaten American lives.

AMY GOODMAN: That’s Thomas Curry, head of the Office of the Comptroller of the Currency. It seems like a lot of people who are in prison right now—low-level thieves, criminals, drug launderers, people who have been accused of working with al-Qaeda—perhaps could appeal their convictions now and get out of jail.

MATT TAIBBI: Right. Right, yeah, exactly. I was in court yesterday, in criminal court in Brooklyn. I saw somebody come out of—come into court who had just been overnight in jail for walking from one subway car to another in front of a policeman. You can do real time in jail in America for all kinds of ridiculous offenses, for taking up two subway seats in New York City, if you fall asleep in the subway. People go to jail for that all the time in this country, for having a marijuana stem in your pocket. There are 50,000 marijuana possession cases in New York City alone every year. And here we have a bank that laundered $800 million of drug money, and they can’t find a way to put anybody in jail for that. That sends an incredible message not just to the financial sector but to everybody. It’s an obvious, clear double standard, where one set of people gets to break the rules as much as they want and another set of people can’t break any rules at all without going to jail. And I just don’t see how they don’t see this problem.

JUAN GONZÁLEZ: Well, Matt, Assistant Attorney General Lanny Breuer outlined some of HSBC’s alleged drug cartel ties.

ASSISTANT ATTORNEY GENERAL LANNY BREUER: From 2006 to 2010, the Sinaloa cartel in Mexico, the Norte del Valle cartel in Colombia and other drug traffickers laundered at least $881 million in illegal narcotics trafficking proceeds through HSBC Bank USA. These traffickers didn’t have to try very hard. They would sometimes deposit hundreds of thousands of dollars in cash in a single day into a single account, using boxes, as Loretta said, designed to fit the precise dimensions of the tellers’ windows in HSBC’s Mexico branches.

JUAN GONZÁLEZ: Matt, this is like Monopoly, the board game, all over again, you know? Get out of jail free, you know.

MATT TAIBBI: Yeah.

JUAN GONZÁLEZ: Instead of $50, you pay $1.9 billion, but you’re still getting out of jail free.

MATT TAIBBI: And this fits in the—in with the pattern of the entire financial crisis. $1.9 billion sounds like a lot of money, and it definitely is. It’s a record settlement. No bank has ever paid this much money before. But it’s about two months’ worth of profits for HSBC. It’s not going to cripple this bank. It’s not even going to hurt them that badly for this year. It fits in line with the Goldman Sachs settlement in the Abacas case, which was hailed at the time as a record settlement. It was $575 million. But that was about 1/20th of what they got just through the AIG bailout. So, this is not a lot of money for these people. It sounds like a lot of money to the layperson, but for the crimes they committed, getting away with just money—and it’s not even their own money, it’s not their personal money, it’s the shareholders’ money—it’s incredible. It really—it literally is a get-out-of-jail-free card.

JUAN GONZÁLEZ: And, of course, the way that big banks these days can borrow money from the U.S. Fed for no interest—

MATT TAIBBI: For free.

JUAN GONZÁLEZ: For free.

MATT TAIBBI: Free.

JUAN GONZÁLEZ: Basically, they can just take money from the government and pay the government back.

AMY GOODMAN: What does the Justice Department, what does the Obama administration, gain by not actually holding HSBC accountable?

MATT TAIBBI: You know, I think—I’ve asked myself that question numerous times. I really believe—and I think a lot of people believe this—that the Obama administration sincerely accepts the rationale that to aggressively prosecute crimes committed by this small group of too-big-to-fail banks would undermine confidence in the global financial system and that they therefore have to give them a pass on all sorts of things, because we are teetering on the edge of a problem, and if any one of them were to fall out, it would cause a domino effect of losses and catastrophes like the Lehman Brothers business. And I think they’re genuinely afraid of that. And so, that’s the only legitimate explanation that you can possibly assign to this situation, because, as we know, Wall Street abandoned the Obama administration this year when it came to funding in the election. They heavily supported Mitt Romney and didn’t give Obama much money at all.

The “Looming Fiscal Cliff” Is a Hoax: Tax Reform As Wealth Privatization Scam & The Phony Crisis Industry

In Uncategorized on November 19, 2012 at 4:23 pm

Oldspeak:”Nothing’s “looming.” Nothing. There’s just some language in a law Congress passed last year. If they don’t want it to happen they can un-pass that law. It’s a simple as that. And do you want to know something? They don’t want it to happen. It’s a part of a long-range plan to scam the public into transferring even more of its wealth to the wealthiest among us: first by giving them lower tax rates, and then by cutting a program the public has already paid into. That way there’ll be less pressure to increases taxes on the wealthy later on. (They may also want to raid Social Security’s trust fund to pay for the deficits caused) -Richard Eskow. While the President meets with senior banking corprocrats to discuss how to avoid the latest manufactured crisis, corprocrat controlled media outlets avoid discussing the obvious and easy means to avoid austerity cuts. Probably because both parties have agreed that austerity is necessary.  Especially on public programs that are not contributing to deficit like Social Security. How long will Demopublicans engage in their latest  farcical dance masquerading as “negotiations” before they decide to sell their country to the highest bidders?  “Ignorance Is Strength”

By Richard Eskow @ The Campaign For America’s Future:

They’re dashing through the corridors of power in Washington with appropriately grim expressions this week. Congressional leaders are talking about the upcoming ‘fiscal cliff,’ which journalists are dutifully describing as a “looming crisis.”

In fact, if you do a Google News search for articles containing the words “fiscal cliff” and “looming” you’ll get 72,000 hits (as of Wednesday evening). We know because we tried it.

72,000 hits.

But nothing’s “looming.” Nothing. There’s just some language in a law Congress passed last year. If they don’t want it to happen they can un-pass that law. It’s a simple as that.

And do you want to know something? They don’t want it to happen.

Nobody Move

This phony crisis is a lot like this scene in Mel Brooks’ Blazing Saddles, where Cleavon Little as The Sheriff pretends to take himself hostage to escape an angry crowd. You may remember the gag line, which included a word we won’t use: “Nobody move or the $^((*&^(* gets it.”

Brooks crafts his throwaway lines pretty carefully, too. Look for the earnest man who says “I think he means it,” or the woman in the crowd who says “Won’t somebody help that poor man?”

Here’s how the “fiscal cliff” scam’s being played: Congressional Republicans are holding the guns to their own heads. Democrats are the town leaders, dutifully laying their weapons down.

And the American media are the gullible townfolk, carefully writing in their notebooks about the “looming” threat to their sheriff.

Johnny Law

Viewers of MSNBC know that progressives like Chris Hayes and Lawrence O’Donnell are dutifully trying to remove the word “cliff” from the nomenclature, since the effects of this law would be gradual — more like a “slope,” as they said the other night. They’re right about the “slope” part.

But it’s a tactical mistake to even engage in this kind of discussion, because there’s really no “slope” either. There’s just a law.

John Boehner’s law.

Sure, the President agreed to that law as part of a deal to settle deficit talks last year. At the time the Republicans were about to shut down the entire government. The GOP forced this law into existence.

That means the “fiscal cliff” is theirs. They own it.

Anyone who opposes disastrous, European-style austerity measures needs to stop talking about this in urgent terms. And nobody should characterize it as anything but what it really is: A deed performed by Republicans in Congress, which the same Congress can easily reverse.

That’s not just more accurate. It also places the responsibility for this pseudo-crisis exactly where it belongs.

A Gun to the Head

The motives for the hoax are easy to understand. As a Campaign for America’s Future/Democracy Corps poll reaffirmed after the election, the public overwhelmingly opposes any of the fiscal measures being negotiated as the result of this fictitious “crisis.”  A majority of voters, cutting across party lines, opposes virtually all of the ideas being discussed – including cuts to Social Security and Medicare benefits, and reductions in anti-poverty programs.

Voters strongly support some steps that aren’t being debated because of this phony “crisis,” like increased investment in jobs and economic growth. These negotiations are likely have the opposite effect instead, leading to more cuts in these programs. In fact, of the many “debt deal” provisions being debated today, only tax increases for the wealthiest Americans have the majority’s approval.

No wonder Congressional Republicans are holding a gun to their own heads.

Unfortunately it’s pointed at our heads too. If Republicans get their way the entire country will be hit with austerity cuts that increase the poverty rates, hurt most people’s standard of living, and create even more unemployment.

This phony crisis is the GOP’s way of saying “Nobody move or the country gets it.” And if the public doesn’t make its voice heard, it will.

Manhattan Transfer

Here’s more proof that both the “fiscal cliff” and the “emergency” deficit talks surrounding it are a fraud: They include two issues that don’t belong in a deficit discussion at all.  One’s Social Security, which is forbidden by law from contributing to the national deficit.

The other is the scam known as tax “reform” and “tax code simplification” – which, in plain English, means a lowering of top tax rates for millionaires and billionaires – supposedly in return for reduced “tax expenditures” and increased “tax revenues” to be named at a later date.

Why would deficit talks include two ideas that won’t reduce the national debt, especially when “tax simplification” will undoubtedly increase that debt substantially? That’s an easy one: Because this phony “crisis” has nothing to do with deficits.

It’s a;; part of a long-range plan to scam the public into transferring even more of its wealth to the wealthiest among us: first by giving them lower tax rates, and then by cutting a program the public has already paid into. That way there’ll be less pressure to increases taxes on the wealthy later on. (They may also want to raid Social Security’s trust fund to pay for the deficits caused by their tax breaks.)

These “deficit” moves would transfer even more of our national treasure to the extremely rich – including those on Wall Street who created our economic crisis in the first place. That, and not a “fiscal cliff,” is what’s “looming.”

The Phony-Crisis Industry

In the past the President has sometimes seemed willing, even eager, to press for a larger “Grand Bargain.” He’s taking a tougher line today, especially about taxes on the wealthy, and should be applauded for that. He should also be urged to take an equally strong position on Medicare and Social Security, which he hasn’t done yet.

Everyone involved needs to understand that, thanks to some new fiscal and electoral math, the anti-austerity team is holding the winning hand now.

It’s true that a tougher Presidential stand would disappoint some people, especially the highly-paid professional “deficit hawks” from both parties. That includes people like former Clinton White House functionary Erskine Bowles, who ghoulishly described this artificial crisis as a “magic moment” to impose austerity measures on the American people.

Bowles is a Director of bailed-out investment bank Morgan Stanley. That means that, unlike most Americans, he would do very well under the lower tax rates proposed in these “deficit” discussions.

A repudiation of this pseudo-crisis would also embarrass professional scaremongers like Douglas Holtz-Eakin, who warned of “big financial market repercussions” if the nation goes over the “cliff.” But we haven’t seen any repercussions before.

The word for talk like that is “nonsense.” (Well, that’s one word for it.) Nobody’s going over any “cliff,” least of all the Republicans.

Dare Ya

Let’s be clear: It would be a bad thing if the provisions in this bill took effect for any length of time. But it’s time to call Boehner’s bluff. Good Democrats can’t let themselves be railroaded into austerity by this phony crisis, while the other kind – the Erskine Bowles Democrats – shouldn’t be allowed to use it as cover.

Boehner knows he’s in a weak position, which is why Republicans have quietly been looking for ways to delay the “cliff.”  Democrats should take note of that and recognize the motives behind it.

The President should go on television and say to Congress: If you won’t accept the will of the people, undo your reckless law. Democrats on the Hill should insist on up-or-down votes for provisions that the public wants. This charade won’t stop until the GOP’s bluff is called.

Boehner insists that Congressional Republicans, along with everybody else, are standing on a “cliff.” It’s time somebody dared them to jump.

Obama Admininstration Helps Undermine U.N. Arms Control Treaty While Touting Record-High Weapons Sales Abroad

In Uncategorized on August 6, 2012 at 12:46 pm

http://www.thanhniennews.com/2010/Picture/VW028/arms1.jpgOldspeak:As the talks collapsed at the United Nations, a top U.S. State Department official openly bragged that U.S. government efforts had helped boost foreign military sales to record levels this year. Speaking to a group of military reporters, Andrew Shapiro, the Assistant Secretary of State for Political Military Affairs, said, “We really upped our game in terms of advocating on behalf of U.S. companies. I’ve got the frequent flier miles to prove it.” According to Shapiro, U.S. arms sales have already topped $50 billion in 2012, putting the U.S. on pace to increase its total for the year by 70%.” -Amy Goodman. Meanwhile, 82 people a day are killed via gun violence in America.  Mass shootings occur far too regularly. Remote controlled killings are normalized.  These actions are even more shameful in light of recent tragic events. It’s become clear that the order of the day in our current ‘civilization’ is that profit is paramount. Preserving human life is not a priority. 1st world powers make flowery speeches about preserving peace, reducing violence and conflict, while simultaneously fomenting proxy wars.  Zealously bankrolling death, destruction, and violence.  Leading with world in supplying client states with weapons of mass destruction. When will this profoundly hypocritical madness end?!” “War Is Peace”

Related Stories:

The Obama Administration Torpedoes the Arms Trade Treaty

U.N. Arms Trade Treaty Fails On U.S. Opposition After False NRA Gun Rights Threat
By Amy Goodman @ Democracy Now:

Guest:

William Hartung, director of the Arms and Security Project at the Center for International Policy. His latest book is called, “Prophets of War: Lockheed Martin and the Making of the Military-Industrial Complex.”

AMY GOODMAN: Arms control advocates are blaming the Obama administration for last week’s failed negotiations over the first-ever global agreement regulating the $60 billion arms trade. While most United Nations member states favored a strong treaty, the United States and Russia said there was not enough time left for them before Friday’s deadline to clarify and resolve issues they had with the draft treaty. The U.S. — the world’s largest manufacturer — had demanded a number of exemptions and ultimately said it needed more time to review the proposals. White House officials had cited the need to protect Second Amendment rights in the U.S., despite U.N. assurances the treaty text would not interfere. Amnesty International USA said the U.S. had shown stunning cowardice, adding, “It’s a staggering abdication of leadership by the world’s larger exporter of conventional weapons, to pull the plug on the talks just as they were nearing an historic breakthrough.”

As the talks collapsed at the United Nations, a top State Department official openly bragged that U.S. government efforts had helped boost foreign military sales to record levels this year. Speaking to a group of military reporters, Andrew Shapiro, the Assistant Secretary of State for Political Military Affairs, said, “We really upped our game in terms of advocating on behalf of U.S. companies. I’ve got the frequent flier miles to prove it.” According to Shapiro, U.S. arms sales have already topped $50 billion in 2012, putting the U.S. on pace to increase its total for the year by 70%.

For more we’re joined by Bill Hartung, author of, “Prophets of War: Lockheed Martin and the Making of the Military-Industrial Complex.” We welcome you to Democracy Now! Bill, explain what happened, how the treaty negotiations took place and what happened at the very end last week.

BILL HARTUNG: One of the toughest things is the were trying to get consensus. So, a number of smaller countries raised procedural issues. All those had seemed to be resolved. Within a day of the end of the negotiations, activists thought the treaty was going to happen. Not perfect, but certainly would make it harder to sell to human rights abusers, throw guns into war zones. The U.S. then suddenly pulled back and said, well we don’t think the treaty is really ready, let’s sort of start from scratch. Essentially, that was the last straw. Other countries like Russia put up obstructions. But once the U.S. pulled out it was the last nail in the coffin.

AMY GOODMAN: Explain exactly what was the U.S. involvement all along and why is the U.S. so important to the ATT, the Arms Trade Treaty?

BILL HARTUNG: The U.S. is the biggest arms exporters in the world, and in other areas has been a political leader. Here the Obama administration was pulling back. They weren’t really using any political muscle to support this; they were, sort of, reluctant participants. But, I do not think it was expected that they were going to go so far as to actually torpedo the treaty. They had not supported key elements like regulating ammunition, which was central to keeping — stopping the killing.

AMY GOODMAN: Talk about the players who were at the United Nations, the forces lobbying against the ATT, the Arms Trade Treaty. Talk about the power of the NRA.

BILL HARTUNG: The NRA has taken an interest in the global arms trade going back about two decades. Their theory, which has been discredited, is if you regulate guns anywhere, there will be regulated everywhere. Also, they’re opposed to treaties of any form. Basically, they love guns, they hate treaties, and this was a chance for them to exert influence both within the U.N. and also against the Obama administration to keep it from taking a stronger stand.

AMY GOODMAN: Wayne LaPierre was at the United Nations, the spokesperson for the head of the National rifle Association.

BILL HARTUNG: Yes, he was there. He gave a speech where basically he said the treaty was an offense to any American who breathed free air. They were way over the top, especially given that the treaty was designed to let countries regulate arms within their own borders; really dealt only with cross border transfer. So, they really — not only were they an obstacle, but they were completely off base in their characterization of the treaty.

AMY GOODMAN: Last month, Larry Pratt, Executive Director of Gun Owners of America, spoke to Fox News about his concerns about the U.N. arms treaty.

Larry Pratt: It would complete work against what the Second Amendment is intended to do, but it doesn’t seem that the Constitution as much of an obstacle or problem for this administration. But, nevertheless, shall not be infringed, it is something that a treaty can’t trump. The very language in the Constitution dealing with treaty making says that treaties have to be made under the authority of the United States. And if we the People haven’t given authority for gun control to the United States through the federal government, then its hands are tied.

AMY GOODMAN: That’s Larry Pratt, Executive Director of the Gun Owners of America. Bill Hartung, your response?

BILL HARTUNG: Well, there’s two problems with that. Once, obviously, if you agree to a treaty, it’s ratified by the Senate, the people have spoken. That’s why you elect representatives. Second of all, as I mentioned, the treaty had nothing to do with domestic gun control. It’s essentially a paranoid fantasy the NRA translated into their political force around the country.

AMY GOODMAN: Bill, the torpedoing of the arms trade treaty, the ATT, took place exactly a week after the Aurora massacre in Colorado with 12 people killed and many injured. Talk about the links between what’s happening in the United States — very quickly, President Obama came out and said, we don’t need new laws around gun-control, affirming the Second Amendment and the Republican candidate Mitt Romney also shares the same view on that — and then you have this global treaty at the United Nations, within days, torpedoed.

BILL HARTUNG: I think it sends an awful signal to the world. Not only are we not willing to keep arms from killing people overseas, but also our government is not willing to take strong action to prevent the kind of massacre that happened in Aurora within our own borders. The NRA bridges that gap, because they tried to kill the arms treaty, they’ve tried to prevent any gun regulation in the U.S., even though their own membership, in some cases, supports stronger measures than their leadership does. So, to some degree, it’s not really the kind of grass-roots movement that’s presented. There’s the leadership out ahead sort of on the right wing of it, also they’re heavily funded by the gun manufacturers. So, it’s really a special interest group masquerading as some sort of mass movement.

AMY GOODMAN: Explain what you mean.

BILL HARTUNG: Well, the leadership is out in front of the membership in terms of harsh opposition to any gun-control, even things like a waiting period, registration of guns, making sure you can’t walk into a gun show as a criminal and buy a gun easily — which is what happened in the Columbine case. Controls of assault rifles like the ones that was used in Aurora. All of these things are being blocked by NRA leadership, and companies like Smith & Wesson that made gun that was used in Aurora, the military style assault weapon, have given over a million dollars to the NRA. Some gun shops say, round up your purchase and we’ll give the difference to the NRA; called the Roundup Program — that’s put millions in their coffers. So, the NRA would prefer not to have that known, but places like the Violence Policy Center have exposed it in some detail.

AMY GOODMAN: Bill Hartung, I want to ask you about how best to regulate arms. Let me ask you, for a moment, about what happened in Illinois. Very interesting news. The Illinois governor, Pat Quinn, has unveiled a proposal to ban assault weapons in Illinois. On Tuesday, he used his amendatory veto power to propose banning the manufacture and sale of assault weapons and attachments. Quinn is the first U.S. governor to formally put forward an assault weapons ban since the shooting massacre in Aurora, Colorado last month.

PAT QUINN: We should show the nation that when something really bad happens as happened in Aurora, Colorado, a horrific massacre, that we don’t stand idly by. We take action to deal with the source of that problem, and I think we have done that today.

AMY GOODMAN: That’s Illinois Governor Pat Quinn. Bill Hartung, was this a surprise? How significant is this? Could this lead other governors to do the same thing?

BILL HARTUNG: Well, we haven’t seen that kind of courage by other elected officials, and I’m hoping that it gets the ball rolling and it will be emulated in other states. As I indicated, to some degree, the NRA is a paper tiger, and what I mean by that is they don’t have full support of their own membership. Eighty percent of the public support sensible gun controls. So, really, they’ve kind of puffed up their political force beyond what it really is, and they’ve sort of harped on the fact that they’re important in key states like Pennsylvania, swing states like Ohio and Virginia, North Carolina. But even there, I think if you had people explaining — governors for example — the impact of these things, I don’t think you would have the majority of people, even in the NRA, supporting easy access by criminals to military-style assault rifles.

AMY GOODMAN: On the issue of best regulating arms, I want to go first to one of the activists who set up a mock cemetery outside the U.N. Wednesday to urge negotiators to pass a strong Arms Trade Treaty. David Grimason has been active in calling for stringent arms regulations ever since his 2-year-old, Alistair, was shot and killed during a family visit to Turkey nine years ago.

DAVID GRIMASON: A treaty that doesn’t include all conventional weapons and all ammunition is, to me, would just be pointless. At the moment, you’ve got kind of unscrupulous governments that are willing to sell arms to any nation, not really caring about how they’re going to be used. If we don’t get a strong treaty, then that will continue, and the numbers we’re seeing, with 2000 people a day dying, that will continue unless we get a strong treaty.

AMY GOODMAN: Bill Hartung, your response?

BILL HARTUNG: Well, I think he is absolutely right. I mean countries like Russia arming Syria, China arming Sudan, the U.S. doesn’t have clean hands here selling to places like Bahrain that have crushed democracy movements; countries like Saudi Arabia which are not undemocratic themselves but have supported the crushing of democracy in Bahrain, sent troops there. Yet we have the biggest weapons deal in history with the Saudis. Sixty billion dollars, which there’s nothing to compare to that in history. So there’s this signal by the U.S., we’re going to still arm dictatorships, even in the midst of the Arab Spring. We’re not going to get up front about regulating some of these sales, we’re going to try to delay it. So, I think it sends an awful message to the world and doesn’t represent the views of the American public.

AMY GOODMAN: Let me turn to President Eisenhower. In fact, part of the name of your book comes from that famous address that President Eisenhower gave. President Dwight D. Eisenhower’s famous farewell speech to the nation. It was January 17, 1961.

DWIGHT D. EISENHOWER: My fellow Americans, this evening I come to you with a message of leave-taking and farewell and to share a few final thoughts with you, my countrymen. We have been compelled to create a permanent armaments industry of vast proportions. Three and a half million men and women are directly engaged in the defense establishment. The total influence, economic, political, even spiritual, is felt in every city, every state house, every office of the federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. In the councils of government, we must guard against the acquisition of unwarranted influence whether sought or unsought, by the military industrial complex, the potential for the disastrous rise of misplaced power exists and will persists.

AMY GOODMAN: That was President Eisenhower’s farewell address, January 17, 1961. An excerpt from the documentary “Why We fight.” More than 50 years after that speech, many argue the military-industrial complex is stronger than ever. Bill Hartung?

BILL HARTUNG: Well, I think is certainly is stronger than ever. Companies like Lockheed Martin, by itself, gets $36 billion a year from the Pentagon — essentially, people are paying Lockheed Martin tax of $300 a year or more. It’s the biggest entity that’s getting money from the federal government, it’s also involved not only in arms exports, building nuclear weapons, building fighter planes, building combat ships, but it’s also one of the key players in trying to roll back regulations on arms exports and to try to keep the Obama administration from reducing Pentagon spending. So, it’s working on all fronts, you know, to change our policy in a more militarized direction, and as I said, that runs counter to what the average American thinks. Even in states that depend on military spending, recent polls show they’re willing to cut military spending to a greater degree than the so-called sequester, the automatic cuts, that would come if Congress doesn’t get in a budget deal together to reduce the deficit. So, in the same sense that Eisenhower talked about, that military-industrial complex subverts democracy, we are seeing the very same thing today.

AMY GOODMAN: Earlier this year, Bill, one of the world’s most notorious arms smugglers was sentenced to 25 years in prison by a New York federal court judge — not for smuggling, but for conspiracy and terrorism charges. Viktor Bout is known as “The Merchant of Death” for running what the United Nations and U.S. officials say was an intentional arms trafficking network. In April, during a pre-sentencing telephone interview with Voice of Russia Bout maintained his innocence saying all arms suppliers in the U.S. would be in prison, too, if the same standards were applied across the board.

VIKTOR BOUT: I am innocent. I don’t commit any crime. There is no crime to sit and talk. If you’re going to apply the same standards to me, then you’re going to, you know, jail all those arms dealers in America who are selling the arms and ending up killing Americans. They are involved even more than me.

AMY GOODMAN: That was Viktor Bout. Bill Hartung, your response, if you can respond to what Viktor Bout is saying, respond to the power of U.S. military contractors, and also talk about whether the ATT, the Arms Trade Treaty, is totally dead.

BILL HARTUNG: Well, I think starting with the treaty, there is a move by the groups that supported it to take it to the General Assembly of the United Nations. There they need a majority, not a full consensus. I think that is a hard thing to do, but certainly worth as much energy as possible. I do not think it is impossible to do that. In terms of Bout’s statement, perhaps the U.S. is not quite on the level he was; he was arming Sierra Leone, He was arming Angola, some of his arms went to the Taliban. But, the U.S. had links to Bout. His companies were being hired to ferry weapons into Iraq. Many dealers like Bout have past associations with the CIA, with intelligence agencies around the world, helping them carry out deals like Iran-Contra. So, as I said, the U.S. doesn’t that have clean hands in this, and without an arms trade treaty, somebody like Bout can go around the world, hide behind different laws in different countries, deal with the patch-work regulations we have now, which is why it took so long to get him into jail. And as you said, they didn’t even get him on arms trafficking, but rather on a lesser, different charge. So, that’s why, I think torpedoing the arms trade treaty is really unconscionable because it makes a possible for the Viktor Bouts of the world to continue to operate relatively unimpeded.

AMY GOODMAN: Finally, President Obama’s relationship with weapons manufacturers; with Lockheed Martin, with Boeing, with the many other in the military-industrial complex.

BILL HARTUNG: Well, He’s not at the level of the Bush administration, which really had many, many Lockheed Martin people in the administration, but they have had people, for example lobbyists from Raytheon, top level jobs in the Pentagon, they’ve had advisers in the White House, on the board of Boeing. They’ve been really, as you mentioned, there’s people in the State Department bragging about how much they’ve helped the industry. And, not only Obama, but the Congress, which gets millions of dollars from the industry, has people working there who used to work for companies like Lockheed Martin and Northrop Grumman at the top level of the Armed Services Committee in the two houses. So, that is exactly what Eisenhower was talking about, the revolving door from industry into government, the money flowing to government to help destroy arms export regulations, funding of Right-wing think tanks like the Heritage Foundation that helped block things like the Arms Trade Treaty and reductions in military spending, cuts in the Star Wars program. So, unfortunately, without more public pressure, which I think is necessary and possible, the military-industrial complex is going to roll over many of the things that most people in this country think our government should be doing in this area.

AMY GOODMAN: Bill Hartung, I want to thank you for being with us, Director of the Arms and Security Project at the Center for International Policy. Bill Hartung is author of, “Prophets of War: Lockheed Martin and the Making of the Military-Industrial Complex.”

World’s Faith in “Free Market” Capitalism, Hard Work, Eroding. As Global Financial Crisis Continues, Pervasive Gloom About World Economy: Survey

In Uncategorized on July 13, 2012 at 3:35 pm

Oldspeak:”The world is getting wise to the hustle that is Free Market, casino capitalism. Money is being pumped into military spending, “Too Big To Fail” Banks and other multinational corporations.  Everyone else gets “Austerity Measures” Billions of  ordinary people work soul crushing jobs for slave wages their whole lives to barely survive.  Something has to change. This monetary system is unsustainable and breeds corruption, greed, and economic violence.”

By Common Dreams:

The financial crisis that has bred unemployment, austerity, and economic pain across the global for nearly fives years is also battering the reputation of the system many believe to be its main cause: “free market” capitalism.

According to a new global poll by Pew Research, only half or fewer — in 11 of 21 nations surveyed — now agree with the statement that people are better off in a “free market” economy than in some other kind.

In nine of the 16 countries for which there is trend data since 2007, before the financial crisis began, support for capitalism is down, with the greatest declines in Italy (down 23 percentage points) and Spain (down 20 points).

Support for capitalism is greatest in Brazil, China, Germany and the U.S, says the report. The biggest skeptics of the free market are in Mexico and Japan.

The survey found only four countries in which a majority of people were happy with and optimistic about the economic situation: China (83 percent), Germany (73 percent), Brazil (65 percent) and Turkey (57 percent). The Chinese are a particular exception to most of the questioning on economic optimism with Pew observing that, overall, the people of China — which runs a single party, state-controlled economy — “have been positive about their economy for the past decade.”

The survey also showed that the prolonged global economic slump has depressed the public mood about their national economies. In only four of 21 countries surveyed does a majority say their economy is doing well.

Anger at government was shared in most countries, but banks and financial institutions were frequently – in Spain (78%), France (74%) and Germany (74%) – seen as the culprit behind the poor performance of national economies. And in two instances – France and Spain – significantly more of the public blamed the banks than blamed the government.

Read the full poll results here.

The Spectacle Of Terrorism And Its Vested Interests

In Uncategorized on May 10, 2012 at 2:50 pm

Oldspeak:”The “War On Terror” has been monetized. “It is important to note that we can no longer assume that the FBI and the CIA and the NSA work, first of all, for the safety of the American people; they also now represent a revolving door of government officials who become security industry lobbyists and manufacturers, which, in turn, get the multimillion-dollar contracts for tackling the very problems these stories appear to highlight.” -Naomi Wolf. In an inverted totalitarian kleptocracy, EVERYTHING is for sale, including terrorism, fear, safety, and security. Those words are used to sell us more shit we don’t need than we care to realize. They’re used to deprive us of our rights and liberties. They’re used to keep us in a perpetual state of shock & learned helplessness. And various vested interests are making trillions off of these words. All while, we’re less safe, less secure, and more fearful and creating more terrorists with ever death-dealing drone strike.” “War is Peace”, “Freedom is Slavery”, “Ignorance is Strength”.

By Naomi Wolf @ The U.K. Guardian:

The news stories, which quickly surface, long enough to cause scary headlines, then vanish before people can learn how often the cases are thrown out. These are stories about “bumbling fantasists”, hapless druggies, the aimless, even the virtually homeless and mentally ill, and other marginal characters with not the strongest grip on reality, who have been lured into discourses about violence against America only after assiduous courting, and in some cases outright payment, by undercover FBI or police informants.

They have become a litany in recent years. The terrifying 2003-2004 national news stories that a Detroit “sleeper cell” had sent Muslim terrorists to blow up Disneyland and other landmarks, including in Las Vegas, was later thrown out of court, with accusations of prosecutorial misconduct, to almost no press attention – the same cycle of hype and failed convictions that have characterized many such stories. The evidence had included a home video taken in Disneyland, “doodles”, and a guy with a credit card fraud problem, who had been pressured to diminish his own sentence by accusing his buddies.

But the tales of entrapment and terror hype continue apace – ten years after 9/11. Judith Miller, in Newsmax, writes that one recent case was so lame that even the FBI distanced itself from NYPD: “Despite FBI Doubts, NYPD Convinced Pipe Bomb Case Posed Real Danger”, noted the headline on her 28 November 2011 article. A 27-year-old Dominican immigrant, Jose Pimentel, aka Muhamad Yusuf, had been monitored by NYPD for two years. Last fall, Manhattan District Attorney Cyrus Vance Jr charged Pimentel with constructing pipe bombs to attack “police cars, post offices, veterans of Iraq and Afghanistan, and other targets”.

An email in the case, which purports to show that Pimentel was writing about violent jihad to the al-Qaida-supporting “glossy magazine” Inspire, was described to Judith Miller by anonymous “law enforcement officials”. Given Miller’s journalistic history, this sentence alone should raise eyebrows. But the alleged email is, she writes, “part of a vast investigative file containing over 400 hours of surveillance audio and video tapes, interviews, and other material amassed by the NYPD”. New York Police Commissioner Ray Kelly, in a flashy press conference, called the young man a “lone wolf” terrorist – a recent DHS soundbite. But the case was so shaky that the Federal Bureau of Investigation, as well as federal prosecutors, did not want to join the case: “Too many holes in the case”, other anonymous officials told Miller.

Pimentel was one of what has become an army of FBI- or NYPD-entrapped losers. He had no money, no job, and at key points lived with his mom. The New York Times noted that he may have been psychologically “unstable”, and that he had made threats after smoking pot. Officials say that in May 2010, he repeated loudly in Arabic that “America is my enemy.” This scary guy was a circuit city clerk in Schenectady, New York.

Additional evidence that Miller’s anonymous sources give for his being a terrorist? In 2010, he had $100. One witness told police “that he had flashed a $100 bill when he made some purchases.”Another? “Pimentel scraped the heads of some 750 matches, officials say.” The scenario that entrapped Pimentel involved a surround-sound of informants trying to entrap him in cyberspace and to lure him to incriminate himself in taped phone conversations. But the FBI dropped its involvement after they judged that the informant had been too active in helping: urging or arranging for Pimentel to start drilling into pipe pieces – the evidence that he intended to set off a bomb.

Many other, much-ballyhooed cases of “homegrown terrorism” show this creaky, effortful, farcical quality of people who, left to their own devices by the FBI or NYPD, would have remained harmlessly playing video games in their childhood bedrooms, smoking their doobies, or babbling gently to themselves, on their anti-psychotic meds, about geopolitical forces.

The “Newburgh Four” is another such case, as Russia Today reported: four African-American Muslims were found guilty recently of a plot to place bombs in two Bronx synagogues and to shoot down military aircraft in Newburgh. Another flashy press conference in May 2009 showcased these four men as “the faces of homegrown terrorism”. The FBI had claimed that the men had planned to commit their acts of terrorism on the day that they were arrested. Joseph Demarest from the FBI called it “a terrifying plot”.

The men were low-income former convicts who could not read or write with literacy. They could not drive and had no passports. Shahid Hussain, a Pakistani immigrant who was an FBI employee, got them to say they were going to commit these crimes – paying them $100,000. Hussain presented the men with a fake stinger missile, and Hussain offered these poverty-stricken men cars and money in exchange for their promise to carry out the manufactured plot.

The men’s relatives accused the FBI of entrapment. “I do not think this is entrapment. I know it is. This is entrapment,” said Alicia McWilliams-McCollum, aunt of 29-year-old David Williams. As with many of these scenarios, one can easily imagine poor people with criminal records, offered large sums of money by a fake jihadist, trying to get the money and then trick the instigator. Also, as any AA or Al-Anon counsellor can tell you, if drugs or alcohol are in the mix, entrapment is a ridiculous premise, too: an addict will say anything, and make any ludicrous promise, to get a giant check. It doesn’t mean the addict has any intention of delivering on the supposed contract. David Williams’ aunt says that her nephew is in prison because of a pretend terror attack created by the FBI:

“They are creating scenarios; they are manufacturing crimes. That would not have occurred if you had not planted an unconstructive seed into a community.”

Attorney Steve Dowds, who tracks cases like the Newburgh Four, argues the US government is systematically employing preemptive prosecution:

“They are taking some down and out vulnerable individuals and not only planting the ideology of jihad on them, giving them all the things they need, all of the material. They are setting up the plan, giving them all the research and then grabbing them and claiming these were homegrown terrorists. It is just a fiction.”

Now we have another “underwear bomber” – declared by the Pentagon to have been about to launch a major attack via a US-bound plane, but who appears, reportedly, to have been a CIA-run double agent. What is the evidence that the “device”, which is supposedly so sophisticated that there is doubt as to whether existing surveillance technologies in US airports would have caught it, actually exists? As with so many of these stories, we have no independent verification – because reporters from the British Daily Telegraph, to Reuters, to the Huffington Post are simply taking dictation from New York Representative Peter King and from the Pentagon, and scarcely asking for backup evidence of their elaborate assertions.

It is important to note that we can no longer assume that the FBI and the CIA and the NSA work, first of all, for the safety of the American people; they also now represent a revolving door of government officials who become security industry lobbyists and manufacturers, which, in turn, get the multimillion-dollar contracts for tackling the very problems these stories appear to highlight. The stories about the first “underwear bomber” preceded the rollout of former DHS chief Michael Chertoff’s costly scanners; the press interviews for this round of mystery “underwear bomber” stories are practically a press release for some expensive technological upgrade – or yet more hellishly invasive and demeaning search technique. The sad truth is that we can no longer report and consume such stories as if there were no commercial vested interests involved in creating and sustaining such “terror theater”.

You know we have “terror theater” in the US because nations such as Israel, which are genuinely focussed on deterring terrorism, downplay risk and threats rather than trumpeting them, as DHS does. If the threat is real, they don’t reveal all the details of the latest “planned attack” to the news media – because they are busy investigating real planned attacks, rather than doing corporate PR and product placement. Instead of TSA groping, aviation security, from Britain to Israel, to Spain to Norway, uses much less invasive and more acute security processes, such as face-to-face, in-line interviewing. They do not sell commercial products that subvert recall surety issues, such as the various costly and vastly lucrative new “Global Entry Trusted Traveller Network”, an apparent government program that is not transparent or accountable. You can sign up for for a fee of $100 a year, after an interview. No TSA representative I interviewed knows who owns the initiative, which they said was private, not a government program; nor could they tell me where the money really goes.

Actual terrorism-fighting nations would never devolve such security concerns to private contractors or sell easier travel access for cash – because it is both dangerous and absurd to do so. In fact, what the FBI and CIA and the Pentagon are up against is that people – including Americans – are waking up to the fact that there would be no enemy if we weren’t manufacturing new terrorists by taking out civilians in Pakistan, Yemen and Afghanistan. An end to foreign wars (which are already costing us thousands of casualties a year) would be a much more effective counter-terror strategy than this hyped, synthetic threat to justify a corporate surveillance-and-security product gold rush. Instead, we are treated to a spectacle orchestrated by alarmist officials who keep holding frightening press conferences promoting the threat of dazed, poor, drugged-out “lone wolves”. The true, Orwellian agenda is to support a vast new crony-capitalist industry that uses terror theater to turn open democracies into surveillance societies.

Bipartisan Support As U.S. Congress Rolls Back Toothless, “Financial Reforms” On Complex Financial Instruments, Derivatives

In Uncategorized on April 3, 2012 at 6:34 pm

Oldspeak: “A nation of sheep begets a government of wolves” -Edward R. Murrow.  Exhibit Z of how thoroughly the U.S. government has been captured by casino capitalists/corporatists. Voting by and overwhelming margin to roll back already feeble regulations of the very same OTC derivatives a.k.a. “Financial Weapons Of Mass Destruction”that caused the last global economic crash. Legalized gambling with other peoples money, resources, and livelihoods and having no ability to cover bets is free to continue unfettered once again. I was casually chatting with an investment banker a couple days ago, who was talking about how much more money there was in that field than in education and non-profits and that he hoped to retire by 35, and I remarked “Well you better get it while the gettins good, because it’s all going down again and the crash is gonna be alot worse this time.” he said “Yeah, you know what you’re talkin about, it’s true. It’s going to happen again. How do you know that, do you have a background in finance?” I told him I didn’t I just read and stay informed. The conditions have been created, against all logic, with the help of your corporate-controlled selected representatives to precipitate a bigger and more devastating global economic collapse that will divest many more Americans of their alleged inalienable rights to life liberty and the pursuit of happiness. Hold on tight kids it’s gonna be a bumpy ride. “Profit Is Paramout”

Related Story:

The Mathematical Equation That Caused The Banks To Crash

Related Video:

Credit Default Swaps

By Washington’s Blog:

Out-of-control derivatives were one of the main causes of the economic crisis … and nothing has really been done to solve the problem.

Is Washington finally about to fix the problem?

Of course not … they’re going to make it worse, and roll back even the toothless psuedo-reforms which they pretended to make.

As the Washington Post notes:

To the chagrin of consumer groups, the House gave overwhelming bipartisan approval Monday to two bills easing requirements that President Barack Obama’s overhaul of financial regulations impose on some exotic financial instruments blamed for helping trigger the 2008 financial crisis.

Lawmakers of both parties said they were relaxing rules that would otherwise inhibit the ability of companies to manage the risks of prices and investments, ultimately reducing their profitability and job creation. Consumer groups said legislators were bowing to the interests of their corporate and finance-world contributors and taking steps that might prove harmful to the public.

***

The instruments are called derivatives ….

***

“End users, you know, were not the cause of the financial crisis,” said Rep. Scott Garrett, R-N.J.

Democrats praised the bills as well.

“We should allow American businesses, acting in good faith, to effectively manage risk,” said Rep. Marcia Fudge, D-Ohio.

Truth is even funnier than satire. Congresswoman Fudge, indeed …

 

“The Super Bowl Of Disasters”: Disaster Capitalists Profiting From Crisis In Post-Earthquake Haiti

In Uncategorized on February 24, 2012 at 3:27 pm

US taxpayers are underwriting sweatshop expansion in Haiti. Here, textile workers protest for better rights and working conditions. Photo: Ansel Herz.

Oldspeak:”Many a corporation, lobbyist, and consultant has seen Haiti’s losses as their gain, leveraging humanitarianism for profit. Plenty of the $1.1 billion in disaster aid has gone not to desperate Haitians but to inside-the-Beltway contractors. Often the very same corporations have wrested financial and political gain from the wars in Iraq and Afghanistan, the countries hit by the 2004 tsunami in the Indian Ocean, the Gulf Coast after Hurricane Katrina, New Orleans after the ensuing flood of 2005, and lots of other places.” Disaster capitalism is being practiced all around the world. Review the 4 steps of the Disaster Capitalism and Cycle and consider the implications.  Haiti is at step 2.  The United States is at step 3.

The Disaster Capitalism Cycle

1. The shock of war, torture, disaster, or political upheaval distracts or deconstructs the popular identity, precluding or minimizing protest against free market reform and privatisation, which are usually unwanted by the masses.

2. First World interests, multinational capitalist firms, and a cooperative and corrupt elite benefit the most from these changes, while for the general population wages drop, the cost of living increases, and social services like welfare and healthcare decrease.

3. The privatisation of important sectors, from mining to healthcare to homeland security, takes away citizen power and control over policy making in these areas, as the government limits its own power through the free market legislation and de-regulation. It becomes difficult to undo these reforms.

4. A feedback loop of international scale emerges, the wealthy and powerful becoming more so. Certain sectors and private hands have an interest in maintaining instability, as they learn to profit more and more from war and disaster – as the cycle returns to step 1.

By Deepa Panchang, Beverly Bell and Tory Field, Other Worlds Are Possible:

As Americans were gearing up for last week’s Super Bowl championship, Haiti’s president Michel Martelly was on a plane to the World Economic Forum to recruit players interested in what one businessman dubbed “the Super Bowl of Disasters” – Haiti’s devastating 2010 earthquake.[1] The Irish-owned cell phone company Digicel footed his trip there, and hosted a regional business tour complete with a gala ball before his return to a country still reeling from crisis conditions in housing, jobs, and basic rights.[2]

Haiti’s status as prime-time jostling space for prospective investors is not new. Many a corporation, lobbyist, and consultant has seen Haiti’s losses as their gain, leveraging humanitarianism for profit. Plenty of the $1.1 billion in disaster aid has gone not to desperate Haitians but to inside-the-Beltway contractors. Often the very same corporations have wrested financial and political gain from the wars in Iraq and Afghanistan, the countries hit by the 2004 tsunami in the Indian Ocean, the Gulf Coast after Hurricane Katrina, New Orleans after the ensuing flood of 2005, and lots of other places. The same deals have been cut over Haiti in the past, too, particularly during periods of political instability.

The earthquake has provided a fresh wave of opportunity. In the first year after the earthquake, the US government awarded more than 1,500 contracts worth $267 million. All went to US firms except 20, worth $4.3 million, which went to Haitian businesses.[3] Among the American corporations that received contracts, we’ve seen everything: many millions going to companies that had had previous contracts cancelled for bad practices, that had paid out as much as eight-figure settlements for violence happening under their watch, that had been investigated by Congress for gaming the system, or that had been the subject of federal reports accusing wastage of funds.[4] We’ve seen corporate executives and members of Congress going through a revolving door and leveraging both sides for contracts. We’ve seen public funds given without any competition or transparency, quite a few to friends of the Clintons and other well-placed insiders.

Local labor and production, which are critical elements in economic recovery, have been trumped for American business profits. According to federal procurement data, among contracts which provide products (as opposed to services), 77% were for products manufactured in the US. They don’t list which, if any, of the remaining 23% involve any Haitian materials or labor.[5]

Two months after the earthquake, companies gathered in a luxury hotel in Miami for a “Haiti Summit” to discuss post-earthquake contracting possibilities. The meeting was sponsored by the International Peace Operations Association (IPOA), but these were no peaceniks. Their members are predominantly private mercenary companies that enforce ‘security’ in war and disaster zones for the US government because, unlike elected entities, they can completely avoid public scrutiny and accountability. They included such companies as Triple Canopy, which took over Blackwater’s contract in Iraq.[6] One of the corporate representatives at the Summit described the outlook: “Their infrastructure is pretty much destroyed, communications are destroyed, there’s a lot of opportunities there for companies, particularly US countries [sic] because of the close proximity.”[7] The Summit was apparently worthwhile, as US government paid out more than $10 million to the industry for “guard services,” and almost $20,000 for riot shields and suits.[8]

Below are a few examples of post-earthquake contracts and grants, selected to show just some of the problems at play. They offer a small glimpse into a much larger, secretive world of disaster deals. We’re grateful to our investigative journalist colleagues who, alongside us, have kept heavy on the scent of these corporations and brought buried information to light.

^^^^^^

“American corporations and their stakeholders must understand how helping Haiti over the long term also helps them,” said the non-profit CHF International in its March 2010 board report. “By contributing to Haiti’s reconstruction in a lasting, meaningful way, companies will be helping to build a new, more vibrant Caribbean market for their own goods and services.”[9]

CHF’s involvement demonstrates how even non-profits can drive development that props up American business interests on the backs of poor Haitians. What CHF refers to as “helping Haiti” has meant using US tax dollars to underwrite textile sweatshops, making it easier and more profitable to score the cheapest source of labor in the hemisphere. In 2006, USAID gave CHF a $104 million, 4-year contract to help “existing industries to increase their capacity, efficiency and reach new markets,” primarily through the export textile industry. The money subsidized CHF’s creation of infrastructure such as roads around industrial areas and training of factory workers on skills such as “how to work in a formal work environment.”[10] Bolstered by additional USAID funding, this project continued after the earthquake.

CHF’s post-earthquake USAID contract, for $20.9 million, went to clean-up projects, including cash-for-work.[11] Cash-for-work meant camp residents engaging in hired-hand projects such as digging drainage ditches and clearing debris, for a period of a few weeks. The scheme has come under fire by camp residents and human rights groups, with even a USAID evaluation raising some serious critiques.[12] The jobs are unpredictable, workers have said, and while the short duration can palliate personal crisis for the moment, the program quickly returns the worker’s family to its desperate state. Those hired are paid officially at the unlivable minimum daily wage of 200 gourdes, or US$5, though unofficially they often earn less. A Haiti Grassroots Watch exposé found, furthermore, that cash-for-work hiring is often based on corruption, with many workers having to pay a ‘kickback,’ negotiate sex (in the case of women) for a job, or affiliate with political parties or candidates.[13] USAID also noted that cash-for-work programs it funded increased risks of “serious and avoidable” accidents on the job “by failing to develop and enforce consistent workplace safety rules and accident procedures.”[14]

CHF’s projects, based on factory jobs and cash-for-work, have given neither livable incomes to employees nor offered development opportunities to the nation. Meanwhile, CHF has gained humanitarian clout and an influx of funding, and its garment industry partners sit happily with the perks.

^^^^^^

Using tried-and-true strategies of political manipulation, some corporations have been able to edge their way into post-earthquake contracts despite histories of fraud and corruption.

AshBritt Environmental, for instance, has a record of disaster response elsewhere that spells trouble for Haiti. The company had received $900 million in contracts for Hurricane Katrina clean-up, after hiring lobbyists formerly involved in state government.[15] An MSNBC investigation later brought to light complaints by local contractors, a mayor, and local legislators that the company’s work was too slow, that it overcharged, and that it was not hiring local contractors.[16] The extent of “layer cake” contracting was so extreme that in one case, AshBritt was paid $23 per cubic yard of debris removed but subcontracted through three middleman companies so that the company that actually removed the rubble received $3 per cubic yard.[17]) Even a 2006 federal report accused the company of wasting money in this subcontractor layering after Katrina.[18]

Given its experience, AshBritt wasted no time unleashing its skills in lobbying and political pressure to get in on the Haiti game. Early in 2010, the company paid $90,000 to a lobbying firm to pressure the government for Haiti contracts, according to disclosure records described in the press.[19] In a prime instance of revolving door between public and private sectors, one of the lobbyists working on the case was the former chief of staff for Senator John Kerry.[20] Kerry, in turn, was the senator who co-sponsored the legislation for Haiti relief funding.

With influential people circulating between the givers and receivers of funds, AshBritt was confident enough about future contracts that it spent an initial $25 million setting up for anticipated operations in Haiti with a soccer field-sized base camp and services to house future project managers.[21] In July 2010, AshBritt won a $500,000 US government contract for debris removal, the first of what the company anticipated would be many contracts to come their way.[22] Continuing the revolving door trend, another lobbyist for the firm was the former USAID Mission Director in Iraq, Lewis Lucke, who was paid $30,000 per month to help win contracts via a partnership venture AshBritt set up.[23] Lucke claimed he “played an integral role” in obtaining three contracts for the company, including $10 million from the World Bank and about $10 million more from the Haitian government (one of the first major government contracts for debris removal).[24] As of this writing, not even the company’s website contains an update on what work it has or has not completed in Haiti.

^^^^^^

Like AshBritt, CH2M Hill, a large engineering and construction firm, should have raised warning signals as a company to be hired on the taxpayer dollar. A government database that monitors federal contracts reveals a track record of corruption, listing nine instances of misconduct for the company since 1995.[25] In one case, the company was paid $4.1 million for a contract in Iraq though no work was actually completed. [26] On the Gulf Coast, a US government investigation of $45 million paid to CH2M and the three other companies in no-bid contracts for Katrina response was declared wasteful spending. [27] CH2M was also accused in a congressional investigation in 1992 of misusing money during its cleanup of toxic waste sites in the U.S. More than two million dollars of this contract were allegedly used for “unallowable and questionable costs,” such as $11,379 for a Christmas party and $2750 for specialty chocolates.[28] The company is listed in the top 50 of U.S.-based contractors and has been a major player in wartime contracting in Iraq and Afghanistan.[29]

The track record was nothing that some strategic lobbying efforts couldn’t mitigate, however. The lobbyist who headed up CH2M Hill’s efforts to win contracts in Haiti was Larry LaRocco, a former congressman from Idaho who now runs his own lobbying firm.[30] And unsurprisingly, the company spent half a million dollars in political contributions in 2010. [31] Thus equipped with politicians in its pocket, CH2M was well-positioned to compete in the latest contract game. It received its first post-earthquake contract just days after the disaster, and was given a joint contract with KBR Global Service (itself notorious due to its Iraq and Afghanistan activities) for facilities operations support at the end of 2010.[32]

^^^^^^

In the case of a few other contracts that we know to be operating in Haiti, we’ve spent hour after hour on the scent. We’ve scoured internet resources, news articles, and company websites to track companies we know received post-earthquake contracts in Haiti. Nothing. Not even a mention, sometimes, in the 100-plus-page 2010 annual reports.

What we have been unable to uncover is at least as alarming as what we have learned about some of the firms receiving millions from the US government, and what they have done with those millions. We wonder whether the US government has had any more knowledge or oversight of the corporate actions than have the corporation’s investors. As for the American people, they have no way to know how their money has been spent or what has been done in their names. The lack of transparency has also given a green light to profiteers to neglect standards, quality, and honesty.

There is one group for whom the secrecy, foul play, taking of power that should never be taken, giving away of what should never be given away, matters most of all: Haitians, the ones whose country is being treated like a Monopoly game. They alone will have to live with the long-term outcome of what foreign companies build, demolish, restructure, or steal in their country.

Copyleft Other Worlds. You may reprint this article in whole or in part.  Please credit any text or original research you use to Deepa Panchang, Beverly Bell, and Tory Field, Other Worlds.


[1] Mike Clary, “Broward Rivals Battle for Work in Post-Quake Haiti,” Sun-Sentinel.com, July 14, 2010.
[2] Paul Cullen, “Attracting trade now focus for Haiti’s president,” The Irish Times, http://www.irishtimes.com/newspaper/world/2012/0130/1224310943929.html
[3] Alex Dupuy, “One Year after the Earthquake, Foreign Help is Actually Hurting Haiti,” Washington Post, January 7, 2011.
[4] Emma Perez-Trevino, “Beating Death Lawsuit Ends in Settlement,” The Brownsville Herald online, January 7, 2010,
http://www.brownsvilleherald.com/articles/rosa-107144-settlement-beating…
. Martha Brannigan and Jacqueline Charles, “U.S. Firms Want Part in Haiti Cleanup,” Miami Herald, February 9, 2010.
[5] “Haiti Earthquake Report,” Federal Procurement Data System, data updated as of 9/15/2011,
https://www.fpds.gov/downloads/top_requests/Haiti_Earthquake_Report.xls
.
[6] See, for example, Jeremy Scahill, Blackwater: The Rise of the World’s Most Powerful Mercenary Army (New York: Nation Books, 2007); Naomi Klein, The Shock Doctrine: The Rise of Disaster Capitalism (New York: Picador, 2007); Jeremy Scahill, “US Mercenaries Set Sights on Haiti,” TheNation.com, February 1, 2010; and Anthony Fenton, “Private Contractors ‘Like Vultures Coming to Grab the Loot,” IPSNews.net, February 19, 2010.
[7] “Al Jazeera Reports on the Haiti ‘Summit’ for Private Contractors,” YouTube video, 3:32, Al Jazeera reporting, posted by “WebofDem,” May 6, 2010, http://youtu.be/kkNCdy0GXyc.
[8] “Haiti Earthquake Report,” Federal Procurement Data System, data updated as of 9/15/2011,
https://www.fpds.gov/downloads/top_requests/Haiti_Earthquake_Report.xls
.
[9] Jane Madden, “Corporations Must Consider Haiti’s Long Term Needs,” Philanthropy News Digest online, March 10, 2010,
http://foundationcenter.org/pnd/commentary/co_item.jhtml?id=287300002
.
[10] “New USAID-Funded Haiti Apparel Center to Provide Training to Thousands of Haitians in the Garment Industry,” press release by USAID, August 11, 2010, http://www.usaid.gov/press/releases/2010/pr100811_1.html.
[11] USAID, Haiti Earthquake: Fact Sheet #48, April 2, 2010,

http://www.usaid.gov/our_work/humanitarian_assistance/disaster_assistance/countries/haiti/template/fs_sr/fy2010/haiti_eq_fs48_04-02-2010.pdf
.
[12]Center for Economic and Policy Research, “USAID/OTI’s Politicized, Problematic, Cash-for-Work Programs,” December 21, 2010,
http://www.cepr.net/index.php/blogs/cepr-blog/usaidotis-politicized-problematic-cash-for-work-programs
; Antèn Ouvriye, Submission to the United Nations Universal Periodic Review: Labor Rights (Transnational Legal Clinic, University of Pennsylvania Law School, 2011),
http://ijdh.org/archives/17948
; and Office of Inspector General, Audit of USAID’s Cash-for-Work Activities in Haiti (San Salvador: September 24, 2010), http://www.usaid.gov/oig/public/fy10rpts/1-521-10-009-p.pdf.
[13] Haiti Grassroots Watch, “Is Cash-for-work Working?”,
http://www.ayitikaleje.org/Dossier2Story2
. Haiti Grassroots Watch, “Cash for Work – At What Cost,” http://www.ayitikaleje.org/haiti-grassroots-watch-engli/2011/7/18/cash-for-work-at-what-cost.html.
[14] Office of Inspector General, Audit of USAID’s Cash-for-Work Activities in Haiti, September 24, 2010, http://www.usaid.gov/oig/public/fy10rpts/1-521-10-009-p.pdf.
[15] Jordon Flaherty, “One year after Haiti earthquake, corporations profit while people suffer,” Monthly Review Magazine, January 12, 2010. “It’s who you know,” CorpWatch, August 16th, 2006, http://www.corpwatch.org/article.php?id=14008
[16] Mike Brunker, “Dust flies over Katrina’s debris,” MSNBC, January 29, 20006, http://risingfromruin.msnbc.com/2006/01/fighting_over_t.html
[17] Rita King, “Layers and Layers,” CorpWatch, August 16, 2006,
http://www.corpwatch.org/article.php?id=14011
.
[18] Martha Brannigan and Jacqueline Charles, “U.S. Firms Want Part in Haiti Cleanup,” Miami Herald, February 9, 2010.
[19] Kevin Bogardus, “Haiti’s recovery aided by U.S. lobbyists,” The Hill, October 11, 2010.
[20] Ibid.
[21] Ben Fox, “Masters of disaster: Foreign firms set up shop in Haiti and wait for construction boom,” Associated Press, June 7, 2010.
[22] Mike Clary, “Broward rivals battle for work in post-quake Haiti,” Sun Sentinel, July 14, 2010, http://articles.sun-sentinel.com/2010-07-14/news/fl-haiti-recovery-rivals-20100714_1_ashbritt-post-earthquake-haiti-debris.
[23] Ben Fox, “Ex-US official sues contractor in Haiti for fees,” Associated Press, December 31, 2010.
[24] Mark Weisbrot, “Haiti and the international aid scam,” The Guardian, April 22, 2011,
http://www.guardian.co.uk/commentisfree/cifamerica/2011/apr/22/haiti-aid
.
[25] Project on Government Oversight, http://www.contractormisconduct.org/
[26] Matt Kelley, “Canceled Iraq contracts cost U.S. $600 million,” USA Today, November, 17, 2008.
[27] Center for Economic and Policy Research, “Impatient to Profit from Disaster,” October 14, 2010, http://www.cepr.net/index.php/blogs/relief-and-reconstruction-watch/impatient-to-profit-from-disaster
[28] Keith Schneider, “Company Accused of Bilking U.S. on Waste Sites,” New York Times, March 20,1992.
[29] Top 400 Contractors Sourcebook cited on
http://newsroom.ch2mhill.com/pr/ch2m/industry-rankings.aspx
. Statement of Mr. Fred M. Brune, President, Government Facilities and Infrastructure Business Group, CH2M Hill Constructors, Inc. before the Commission on Wartime Contracting in Iraq and Afghanistan, July 26, 2010, http://www.wartimecontracting.gov/…/hearing2010-07-26_testimony_Brune_(CH2M%20Hill).pdf.
[30] Kevin Bogardus, “Haiti’s recovery aided by U.S. lobbyists,” The Hill, October 11, 2010. http://thehill.com/business-a-lobbying/123565-haitis-recovery-aided-by-lobbyists
[31] CH2M Hill Expenditures, Center for Responsive Politics, http://www.opensecrets.org/pacs/expenditures.php?cycle=2010&cmte=C00143305
[32] “Haiti Earthquake Report,” Federal Procurement Data System, data updated as of 9/15/2011,
https://www.fpds.gov/downloads/top_requests/Haiti_Earthquake_Report.xls
.

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