Wednesday, March 26, 2014

The Bipartisan Senate Scam Machine: Pair Hope to Revive Economic Crash Conditions

The Economic Scam of the Century

by Mike Whitney - CounterPunch

The leaders of the U.S. Senate Banking Committee, Sen. Tim Johnson (D., S.D.) and Sen. Mike Crapo (R., Idaho), released a draft bill on Sunday that would provide explicit government guarantees on mortgage-backed securities (MBS) generated by privately-owned banks and financial institutions.

Sen. Tim Johnson 

The gigantic giveaway to Wall Street would put US taxpayers on the hook for 90 percent of the losses on toxic MBS the likes of which crashed the financial system in 2008 plunging the economy into the deepest slump since the Great Depression.



Proponents of the bill say that new rules by the Consumer Financial Protection Bureau (CFPB) –which set standards for a “qualified mortgage” (QM)– assure that borrowers will be able to repay their loans thus reducing the chances of a similar meltdown in the future. However, those QE rules were largely shaped by lobbyists and attorneys from the banking industry who eviscerated strict underwriting requirements– like high FICO scores and 20 percent down payments– in order to lend freely to borrowers who may be less able to repay their loans.

Additionally, a particularly lethal clause has been inserted into the bill that would provide blanket coverage for all MBS (whether they met the CFPB’s QE standard or not) in the event of another financial crisis. Here’s the paragraph:

“Sec.305. Authority to protect taxpayers in unusual and exigent market conditions….

If the Corporation, the Chairman of the Federal Reserve Board of Governors and the Secretary of the Treasury, in consultation with the Secretary of Housing and Urban Development, determine that unusual and exigent circumstances threaten mortgage credit availability within the U.S. housing market, FMIC may provide insurance on covered securities that do not meet the requirements under section 302 including those for first loss position of private market holders.” (“Freddie And Fannie Reform – The Monster Has Arrived”, Zero Hedge)

In other words, if the bill passes, US taxpayers will be responsible for any and all bailouts deemed necessary by the regulators mentioned above. And, since all of those regulators are in Wall Street’s hip-pocket, there’s no question what they’ll do when the time comes. They’ll bailout they’re fatcat buddies and dump the losses on John Q. Public.

Sen. Mike Crapo

If you can’t believe what you are reading or if you think that the system is so thoroughly corrupt it can’t be fixed; you’re not alone. This latest outrage just confirms that the Congress, the executive and all the chief regulators are mere marionettes performing whatever task is asked of them by their Wall Street paymasters.


The stated goal of the Johnson-Crapo bill is to “overhaul” mortgage giants Fannie Mae and Freddie Mac so that “private capital can play the central role in home finance.” (That’s how Barack Obama summed it up.) Of course, that’s not really the purpose at all. The real objective is to hand over the profit-generating mechanism to the private banks (Fannie and Freddie have been raking in the dough for the last three years) while the red ink is passed on to the public. That’s what’s really going on.

According to the Wall Street Journal, the bill will:

“construct an elaborate new platform by which a number of private-sector entities, together with a privately held but federally regulated utility, would replace key roles long played by Fannie and Freddie….”

“The legislation replaces the mortgage-finance giants with a new system in which the government would continue to play a potentially significant role insuring U.S. home loans.” (“Plan for Mortgage Giants Takes Shape”, Wall Street Journal)

“Significant role”? What significant role? (Here’s where it gets interesting.)

The WSJ:

“The Senate bill would repurpose the firms’ existing regulator as a new “Federal Mortgage Insurance Corp.” and charge the agency with approving new firms to pool loans into securities. Those firms could then purchase federal insurance to guarantee payments to investors in those bonds. The FMIC would insure mortgage bonds much the way the Federal Deposit Insurance Corp. provides bank-deposit insurance.”

Unbelievable. So they want to turn F and F into an insurance company that backs up the garbage mortgages created by the same banks that just ripped us all off for trillions of dollars on the same freaking swindle?

You can’t be serious?

More from the WSJ:

“Mortgage guarantors would be required to maintain a 10% capital buffer against losses and to have that capital extinguished before the federal insurance would be triggered.”

10 percent? What the hell difference does 10 percent make; that’s a drop in the bucket. If the banks are going to issue mortgages to people who can’t repay the debt, then they need to cover the damn losses themselves, otherwise they shouldn’t be in the banking biz to begin with, right?

This is such an outrageous, in-your-face ripoff, it shouldn’t even require a response. These jokers should be laughed out of the senate. All the same, the bill is moving forward, and President Twoface has thrown his weigh behind it. Is there sort of illicit, under-the-table, villainous activity this man won’t support?

Not when it comes to his big bank buddies, there isn’t. Now check out this clip from an article by economist Dean Baker. Baker refers to the Corker-Warner bill, but the Crapo-Johnson fiasco is roughly the same deal. Here’s Baker:

“The Corker-Warner bill does much more than just eliminate Fannie and Freddie. In their place, it would establish a system whereby private financial institutions could issue mortgage-backed securities (MBS) that carry a government guarantee. In the event that a large number of mortgages in the MBS went bad, the investors would be on the hook for losses up to 10 percent of its value, after that point the government gets the tab.

If you think that sounds like a reasonable system, then you must not have been around during the housing crash and ensuing financial crisis. At the peak of the crisis in 2008-2009 the worst subprime MBS were selling at 30-40 cents on the dollar. This means the government would have been picking up a large tab under the Corker-Warner system, even if investors had been forced to eat a loss equal to 10 percent of the MBS price.

The pre-crisis financial structure gave banks an enormous incentive to package low quality and even fraudulent mortgages into MBS. The system laid out in the Corker-Warner bill would make these incentives even larger. The biggest difference is that now the banks can tell investors that their MBS come with a government guarantee, so that they most they stand to lose is 10 percent of the purchase price.” (“The disastrous idea for privatizing Fannie and Freddie”, Dean Baker, Al Jazeera)

Just ponder that last part for a minute: “The bill would make these incentives even larger.”

Do you really think we should create bigger incentives for these dirtbags to rip us off? Does that make sense to you? Here’s more from Baker:

“The changes in financial regulation are also unlikely to provide much protection. In the immediate wake of the crisis there were demands securitizers keep a substantial stake in the mortgages they put into their pools, to ensure that they had an incentive to only securitize good mortgages. Some reformers were demanding as much as a 20 percent stake in every mortgage.

Over the course of the debate on the Dodd-Frank bill and subsequent rules writing this stake got ever smaller. Instead of being 20 percent, it was decided that securitizers only had to keep a 5 percent stake. And for mortgages meeting certain standards they wouldn’t have to keep any stake at all.

Originally only mortgages in which the homeowner had a down payment of 20 percent or more passed this good mortgage standard. That cutoff got lowered to 10 percent and then was lowered further to 5 percent. Even though mortgages with just 5 percent down are four times as likely to default as mortgages with 20 percent or more down, securitizers will not be required to keep any stake in them when they put them into a MBS.”

Hold on there, Dean. You mean Dodd Frank didn’t ”put things right”? What the heck? I thought that “tough new regulations” assured us that the banks wouldn’t blow up the system again in five years or so. Was that all baloney?

Yep, sure was. 100% baloney. Once the banks unleashed their army of attorneys and lobbyists on Capital Hill, new regulations didn’t stand a chance. They turned Dodd Frank into mincemeat and now we’re back to square one.

And don’t expect the ratings agencies to help out either because they’re in the same shape they were before the crash. No changes at all. They still get paid by the guys who issue the mortgage-backed securities (MBS) which is about the same as if you paid the salary of the guy who grades your midterm exam. Do you think that might cloud his judgment a bit? You’re damn right, it would; just like paying the ratings agencies guarantees you’ll get the rating you want. The whole system sucks.

And as far as the new Consumer Financial Protection Bureau, well, you guessed it. The banks played a role in drafting the new “Qualified Mortgage” standard too, which is really no standard at all, since no self-respecting lender would ever use the same criteria for issuing a loan or mortgage. For example, no banker is going to say, “Heck, Josh, we don’t need your credit scores. We don’t need a down-payment. We’re all friends here, right? So, how much do you need for that mortgage old buddy, $300,000, $400,000, $500,000. You name it. The sky’s the limit.”

No down payment? No credit scores? And they have the audacity to call this a qualified mortgage?

Qualified for what? Qualified for sticking it to the taxpayers? The real purpose of the qualified mortgage is to protect the banks from their own shifty deals. That’s what it’s all about. It provides them with “safe harbor” in the event that the borrower defaults. What does that mean?

It means that the government can’t get its money back if the loan blows up. The qualified mortgage actually protects the banks, not the consumer. That’s why it’s such a farce, just like Dodd Frank is a farce. Nothing has changed. Nothing. In fact, it’s gotten worse. Now we’re on the hook for whatever losses the banks run up peddling mortgage credit to anyone who can fog a mirror.

We’ll leave the last word for Dean Baker, since he seems like the only guy in America who has figured out what the hell is going on:

“In short, the Corker-Warner plan to privatize Fannie and Freddie is essentially a proposal to reinstitute the structure of incentives that gave us the housing bubble and the financial crisis, but this time with the added fuel of an explicit government guarantee on the subprime MBS. If that doesn’t sound like a great idea to you then you haven’t spent enough time around powerful people in Washington.”

The Johnson-Crapo bill doesn’t have anything to do with “winding down” Fannie and Freddie or “overhauling” the mortgage finance industry. It’s a bald-face ripoff engineered by two chiseling senators who are putting the country at risk to beef up Wall Street’s bottom line.

It’s the scam of the century.

Mike Whitney lives in Washington state. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion (AK Press). Hopeless is also available in a Kindle edition. He can be reached at fergiewhitney@msn.com.

Fatah Infighting Marks Near Future for Palestinian Authority

Mahmoud Abbas vs Mohammed Dahlan: The Showdown Begins

by Ramzy Baroud - PalestineChronicle.com

When late Palestinian leader Yasser Arafat was confined by Israeli soldiers to his headquarters in the West Bank city of Ramallah, Mohammed Dahlan reigned supreme. As perhaps the most powerful and effective member of the 'Gang of Five', he managed the affairs of the ruling Fatah movement, coordinated with Israel regarding matters of security, and even wheeled and dealed in issues of regional and international affairs.

That was the period between March and April 2002 and it was a different time. Back then, Dahlan - a former Palestinian Authority (PA) minister, a former National Security advisor and a former head of Gaza's PA Preventative Security Service (PSS)- was king of the hill. All of his rivals were conveniently or by chance out of the picture. Arafat was then imprisoned in his office in al-Muqata’a, and Dahlan's toughest contender, Jibril Rajoub, leader of the West Bank PSS, was discredited in a most humiliating fashion. During the most violent Israeli crackdown of the Second Palestinian Intifada (2000-2005), Rajoub handed the PSS headquarters to the Israeli army with all of its Palestinian political prisoners and walked away. Since then, Rajoub's star faded into a dark chapter of Palestinian history. For Dahlan, however, it was yet a new start.

This is not exactly the kind of history the Fatah leadership, Dahlan included, would like to remember. Such history is simply too dangerous as it underscores the reality that engulfed, and to a large degree, continues to shape the ruling class of the Palestinian Authority in Ramallah whose reach has touched upon every aspect of Palestinian life.

The second uprising, starting in Sep. 2000, unlike the first Intifada of 1987, resulted in much harm. The latter revolution seemed to lack unity of purpose, was more militarized, and allowed Israel to rearrange the post-Intifada and post-Arafat political scene in such a way as to privilege its trusted allies within the Palestinian camp. Dahlan, and the current PA president Mahmoud Abbas, elected in 2005 to a five-year-term, were obviously spared the Israeli purges. Hamas, on the other hand, lost several layers of its leadership, as did the Islamic Jihad and the Popular Front for the Liberation of Palestine (PFLP), which like other socialist groups suffered massive crackdowns and assassinations. Even Fatah activists paid a terribly heavy price of blood and imprisonments because of the leading role they played in the Intifada. For Abbas and Dahlan, however, things were not too bad. In fact, at least for a while, the outcome of the Intifada was quite beneficial for some Palestinian leaders who were at one point relegated to minor roles. Thanks to Israeli schemes, and American pressure, they were brought back to the limelight.

12 years later both Abbas and Dahlan are still the center of attention. Abbas, 79, is an aging president of an authority that has access to funds but no real sovereignty or political leverage (aside from what Israel finds acceptable); and Dahlan, 52, is in exile in the UAE after his supporters were chased out of Gaza by Hamas in 2007, and then the West Bank by his own party in June 2011. This occurred after he was accused of corruption and the poisoning of Arafat, on behalf of Israel, during the Israeli siege. But Dahlan, aided by some strong friends around the region – and of course, his old intelligence contacts in Israel and the US – is unmistakably plotting a comeback.

Abbas knows well that his rule is approaching a sensitive transition, and not only because of his old age. If the John Kerry peace mediation deadline of April 29 results in nothing substantial, as will most likely be the case, it would not be easy for Abbas to keep Fatah's various competing cliques under control. And since Dahlan is sagaciously finding and manipulating gaps to reassert his relevance in a political milieu that continues to reject him, Abbas is lashing out in anticipation of a possible showdown. Interestingly enough, Dahlan is answering in kind by using the generous space given to him by private Egyptian media. Fatah is in crisis once more, and, by its sheer political dominance, Palestinian political institutions in their entirety are likely to suffer.

Even after being banished by both Hamas and Fatah, Dahlan's name continued to be associated with bloody conflicts in the Middle East. In April 2011, Libya's Transitional National Council accused him of links to an Israeli weapons cache that was allegedly received by former Libyan leader Muammar Ghaddafi. Muhammad Rashid was another name mentioned by the Libyans, as he was also a member of the 'Gang of Five' and Fatah Central Committee.

But things got even uglier when a Hamas leader, Mahmoud al-Mabhouh, was assassinated in Dubai in January 2011. While Hamas maintains that the Mossad was behind the assassination (as shown on video footage), two of the suspects who were arrested in Dubai for their purported involvement and for providing logistical aid to the Mossad hit team- Ahmad Hassanain and Anwar Shheibar – work for a Dahlan-owned construction company in Dubai. The men's intriguing resumes also link them to a death cell under Dahlan’s command that operated in Gaza, and was dedicated to suppressing any dissent among Palestinian groups.

The ongoing Abbas-Dahlan spat is inadvertently confirming all suspicions of Fatah's detractors regarding the leadership role in conspiring with Israel to destroy the resistance and its leaders. Yet, strangely, both Abbas and Dahlan continue to present themselves as the saviors of Palestinians, while each accuses the other of being an Israeli collaborator and an American stooge. Many Palestinians are not amused, and it has gone to the extent that Mousa Abu Marzouk, a senior Hamas member, called on Abbas and Dahlan “to refrain from exchanging accusations that serve only the Israeli interests,” reported the Middle East Monitor on March 20.

Abbas' laundry list of accusations against Dahlan (first delivered to the Fatah Revolutionary Council on March 10, then publicly two days later), included Dahlan's role in the assassination of a top Hamas and resistance leader, Salah Shahadeh, along with his family and some of his neighbors in an Israeli airstrike in 2002. Abbas went further by suggesting a Dahlan role in the poisoning of Arafat in 2004. The PA president made a reference to 'three spies' who worked for Israel and carried out high profile assassinations. Aside from Dahlan, the ‘spies’ included Hassan Asfour, who is another member of the 'Gang of Five'.

On March 16, in an ‘interview’ with privately owned Egyptian Dream 2 satellite channel that lasted hours, Dahlan was granted uncontested space to articulate his political agenda as he saw fit. Dahlan called Abbas a “catastrophe” for the Palestinians. “The Palestinian people can no longer bear a catastrophe like Mahmoud Abbas. Since the day he came to power, tragedies have struck the Palestinian people. I may be one of the people who bear the blame for bringing this catastrophe upon the Palestinian people.”

The saga continues with all of its unpleasant details. Fatah supporters who are neither loyal to Abbas nor Dahlan, know well that there movement must fight for and reclaim its revolutionary identity, the very reason behind its existence in the first place.



- Ramzy Baroud is an internationally-syndicated columnist, a media consultant, an author and the editor of PalestineChronicle.com. He is a PhD candidate at the University of Exeter, UK. His latest book is “My Father Was a Freedom Fighter: Gaza’s Untold Story” (Pluto Press, London).

Tuesday, March 25, 2014

America's Terrorists in Venezuela

US Proxy Terror War on Venezuela

by James Petras

Protest, dissent and the destructive terror of war are obviously very distinct forms of expressing opposition and bringing about change. The Obama-Kerry regime support the opposition in Venezuela as a ‘protest movement’ composed of ‘peaceful democratic opponents’ expressing their discontent with economic conditions, while they denounce the democratically-elected Maduro Administration as an ‘authoritarian regime’ violently repressing legitimate dissent. Washington disingenuously claims to have played no part in the actions of the Venezuelan opposition and that its pronouncements are merely directed at promoting democratic freedoms.

The overwhelming evidence show that the Venezuelan opposition has engaged in prolonged and extensive violence, including terrorist acts, assassinations, arson, and destruction of public property. Most recently this includes the murder of military officers and civilian supporters of the government. Widely circulated photographs, even in Washington-controlled media outlets, show opposition activists throwing Molotov cocktails at police and counter-demonstrators and building barricades for bloody street confrontations.

The Obama-Kerry Administration denies any involvement in the ongoing violence while unconditionally defending the opposition gangs of thugs. At the same time it demonizes every legitimate government action to defend its citizens, uphold the Constitution and enforce internationally recognized norms of law and order. The Obama-Kerry regime’s political intervention and its escalating rhetoric is designed to incite the opposition to further violent activity in order to destabilize the country for ‘regime change’.

US Secretary of State John Kerry’s vitriolic rhetoric is timed to counter the recent ebb of opposition activity, assuring the opposition that Washington supports its campaign of ‘warfare in the streets’. President Obama’s propaganda, the regime’s economic sanctions and the channeling of financial and military resources to the violent opposition groups is designed to reinvigorate the campaign of terror and sabotage against the Venezuelan government. The Kerry- Obama sanctions and their war of words provide external support for violent terrorists operating inside Venezuela.

Introduction


Kerry-Obama Rely on the Big Lie


Secretary of State Kerry’s accusation that the Venezuelan government is conducting a ‘campaign of terror’ against the peaceful opposition is a naked lie: The Bolivarian government, which had been the target of two months of street violence sabotage, is itself accused of the crimes committed by the US-backed proxy opposition. This is a favorite ploy of the empire in preparing the ground for ‘regime change’. Washington is intent on the violent overthrow of a democratic government and the establishment of another satellite regime in Latin America.

Washington’s proxy terrorist power grab is evident everywhere. The opposition is openly authoritarian in its demands. It raises economic and social issues as pretexts to undermine of the democratic, constitutional government by force and violence. They seek to weaken the government and have no interest in negotiations or signing any agreement on specific sets of issues. Government offers to meet and establish dialog have been rejected outright. Each government concession has been exploited as a sign of weakness. When the government released dozens of thugs arrested for throwing Molotov fire-bombs, they returned to the streets to burn more property and attack the police.

The opposition has been given every chance to win over Venezuela’s voters in dozens of Presidential, state and local elections. Refusing to accept the will of the majority in lawful elections, they have launched their violent assaults to undermine the people’s rule. Opposition mayors have worked with street thugs who block normal commerce while assaulting individual supporters of the national government.

The opposition has accumulated vast stores of arms and munitions in preparation for an armed uprising. It has trained snipers to assassinate military and police officers upholding the rule of law and have attacked municipal workers and citizen volunteers engaged in clearing streets of debris.

In terms of means, goals and ideology the opposition fits the description of an imperial-financed terrorist minority organized to seize power, destroy majority rule and impose an autocratic dictatorship which would serve as a proxy for US imperial power.

Democratic Politics or Terrorist Putsch?


In the 8 weeks up to March 15, 2014, the terrorist opposition committed 500 violent actions throughout the country. At least 68 members of the Venezuelan National Guard have been injured, shot, or killed by Secretary Kerry’s “democratic protestors”. On May 13, government officials were attacked with high powered rifle fire and seven snipers were arrested with arms and explosives. Paramilitary terrorists have been openly trained and housed at two or more elite universities (Carabobo University and UCV in Caracas). Phony claims of “autonomy” have been used to shield the fact that these privileged campuses are used to stockpile weapons, set up training bases and shelter for paramilitary gangs and snipers.

The economic impact is immense: Business revenues, salaries and wage losses run in the tens of millions. Sniper fire has prevented civil servants, pro-government workers and ordinary citizens from shopping, going to work and participating in pro-government counter demonstrations. The terrorists have sown fear and insecurity, primarily in middle class neighborhoods where they mostly operate – not daring to enter the militant poor and working class barrios.

The government is seen by the masses as extraordinarily tolerant (or excessively conciliatory) in their dealings with these violent opposition gangs, considering the scope and depth of mayhem: As of March 15, only 105 street thugs out the 1,529 violent demonstrators arrested remain in jail facing charges.

Many concerned Venezuelan and international democrats and experts on terrorism believe the Maduro government’s restraint has given the terrorists plenty of time and opportunity to arm, recruit and distribute US funds channeled through phony NGO’s, in preparation for even bigger and more destructive acts of terror, such as bombing bridges, power stations and clinics, as well as assassinating top civilian and military officials. Their assessment of the Maduro government’s security policy is that it is too narrowly focused on the ‘lowest level’ of activists – those caught with Molotov cocktails or engaged in other acts of violence – rather than the political and financial networks which extend deep into the major opposition political parties and business elite who provide funding, political cover and ideological justifications for the growing war of terror against ordinary Venezuelan citizens. Moreover, the ‘revolving door’ judicial system simply emboldens the thugs and saboteurs -- since a day in jail is a very small price for having blown up a community health center or engulfed a National Guardsman in flames.

The government, in its efforts to secure agreements with a section of the opposition, appears to have tied the hands of its security forces: small groups of National Guardsmen have become especially vulnerable to acts of terror from thugs protected by highly-placed opposition political leaders.

Conclusion


In the past two months over a thousand public buildings have been destroyed or damaged, mostly fire-bombed by what US Secretary of State John Kerry has called the “democratic and peaceful opposition”. Most of the arson is directed at buildings closely associated with the government’s popular and effective social welfare programs. These include neighborhood centers for adult education and training; free public medical and dental clinics; public banks providing low interest loans for micro-economic projects; primary and secondary public schools in poor neighborhoods; publicly-owned food-stores providing subsidized food and groceries as well as the trucks carrying subsidized food and essential goods to working-class neighborhoods; public transportation, municipal sanitary workers, community radio stations, pro-government media centers and local Socialist Party headquarters.

Recently large scale caches of arms, including automatic rifles and mortars were discovered in the underground parking lot owned by an opposition-controlled municipality. Another cache of 2,000 mortars and other weapons were found in the opposition stronghold, Táchira State, which borders Colombia, across which arms, drugs and mercenaries enter freely. Many of the National Guardsmen injured were shot by opposition snipers. On March 16, a National Guard captain was assassinated by a sniper shooting from a high rise apartment. The assassin was captured and turned out to be a Chinese mercenary hired by the opposition and part of a para-military hit team

Kerry-Obama’s claim that the protestors are mostly peaceful students is refuted by the fact that nearly two-thirds (971) of the total arrestees (1,529) are not students; many are self-styled street fighters receiving outside material support and funds.

Kerry’s claim that the US is ‘not involved’ and the State Department’s ludicrous effort to portray Venezuela’s charges of US intervention as “paranoia” have been refuted by official US documents showing a continuous annual flow of tens of millions of dollars to opposition organizations linked to the terror networks, including $15 million disbursed during the first two months of this year. The even greater extent of ‘covert’ material aid, including weapons, is unknown.

Top security experts knowledgeable about the subject of external funding for destabilization and terrorism, have reviewed the scope and depth of the ongoing damage and casualties in Venezuela. They have urged the Maduro government to allow the loyal Venezuelan armed forces to participate in quelling the violence. Their recommendations include a declaration of martial law and military sweeps into opposition strongholds to round-up and disarm the violent street thugs and terrorists; unlimited detention, pending trials, for suspected snipers and arsonists and military trials for those suspected of murdering soldiers, police and guardsmen. Opposition mayors, governors and university officials who have provided sanctuaries, training bases, funds and arms to the mercenaries should no longer be immune from prosecution. In recognition of the recent huge demonstrations by ordinary citizens and soldiers supporting a greater role for the Venezuelan Armed Forces and demanding firmer measures to end terror, President Maduro issued an ultimatum to the opposition to end their violence or face the full force of the state.

In addressing the Kerry-Obama regime, President Maduro, once again, demanded it stop aiding the violent opposition and denounced Washington’s threats to further undermine the Venezuelan economy with trade sanctions. He has called on Washington to join a tri-partite commission, including top representatives from the US, Venezuela and the Union of South American states (UNASUR), to discuss peace and sovereignty. While UNASUR is willing to support Maduro’s proposal for dialogue and his peace initiative, US Secretary of State Kerry is moving ahead with economic sanctions against Caracas in support of the US terror war by proxy.

The time for political conciliation is running out: the Venezuelan Armed Forces may finally be given their chance to end this imperial war by proxy.

Post-Script Hopefully, the arm-chair revolutionaries and chattering classes in North America and Europe, who have been so quick to criticize the Venezuelan government, will set aside their ‘reservations’ and organize a solidarity movement to protest the Kerry- Obama imperial war by proxy against Venezuelan democracy. To date they have spent too much time in internet chatter and not enough time in the streets.

Big Data and the Internet of Things

Invasion of the Data Snatchers: Big Data and the Internet of Things Means the Surveillance of Everything

by Catherine Crump and Matthew Harwood  - TomDispatch

Estimates vary, but by 2020 there could be over 30 billion devices connected to the Internet. Once dumb, they will have smartened up thanks to sensors and other technologies embedded in them and, thanks to your machines, your life will quite literally have gone online.

The implications are revolutionary. Your smart refrigerator will keep an inventory of food items, noting when they go bad. Your smart thermostat will learn your habits and adjust the temperature to your liking. Smart lights will illuminate dangerous parking garages, even as they keep an “eye” out for suspicious activity.

Techno-evangelists have a nice catchphrase for this future utopia of machines and the never-ending stream of information, known as Big Data, it produces: the Internet of Things. So abstract. So inoffensive. Ultimately, so meaningless.

A future Internet of Things does have the potential to offer real benefits, but the dark side of that seemingly shiny coin is this: companies will increasingly know all there is to know about you. Most people are already aware that virtually everything a typical person does on the Internet is tracked. In the not-too-distant future, however, real space will be increasingly like cyberspace, thanks to our headlong rush toward that Internet of Things. With the rise of the networked device, what people do in their homes, in their cars, in stores, and within their communities will be monitored and analyzed in ever more intrusive ways by corporations and, by extension, the government.

And one more thing: in cyberspace it is at least theoretically possible to log off. In your own well-wired home, there will be no “opt out.”

You can almost hear the ominous narrator’s voice from an old “Twilight Zone” episode saying, “Soon the net will close around all of us. There will be no escape.”

Except it’s no longer science fiction. It’s our barely distant present.

Tomgram: Crump and Harwood, The Net Closes Around Us

Twice in my life -- in the 1960s and the post-9/11 years -- I was suddenly aware of clicks and other strange noises on my phone. In both periods, I’ve wondered what the story was, and then made self-conscious jokes with whoever was on the other end of the line about those who might (or might not) be listening in. Twice in my life I’ve felt, up close and personal, that ominous, uncomfortable, twitchy sense of being overheard, without ever knowing if it was a manifestation of the paranoia of the times or of realism -- or perhaps of both.

I’m conceptually outraged by mass surveillance, but generally my personal attitude has always been: Go ahead. Read my email, listen to my phone calls, follow my web searches, check out my location via my cell phone. My tweets don’t exist -- but if they did, I’d say have at ‘em. I don’t give a damn.

And in some sense, I don’t, even though everyone, including me, is embarrassed by something. Everyone says something about someone they would rather not have made public (or perhaps have even said). Everyone has some thing -- or sometimes many things -- they would rather keep to themselves.

Increasingly, however, as the U.S. surveillance state grows ever more pervasive, domestically and globally, as the corporate version of the same expands exponentially, as prying “eyes” and “ears” of every technological variety proliferate, the question of who exactly we are arises. What are we without privacy, without a certain kind of unknowability? What are we when “our” information is potentially anyone’s information? We may soon find out. A recent experiment by two Stanford University graduate students who gathered just a few month’s worth of phone metadata on 546 volunteers has, for instance, made mincemeat of President Obama’s claim that the NSA’s massive version of metadata collection "is not looking at people's names and they're not looking at content." Using only the phone metadata they got, the Stanford researchers "inferred sensitive information about people's lives, including: neurological and heart conditions, gun ownership, marijuana cultivation, abortion, and participation in Alcoholics Anonymous."

And that’s just a crude version of what the future holds for all of us. There are various kinds of extinctions. That superb environmental reporter Elizabeth Kolbert has just written a powerful book, The Sixth Extinction, about the more usual (if horrifying) kind. Our developing surveillance world may offer us an example of another kind of extinction: of what we once knew as the private self. If you want to be chilled to the bone when it comes to this, check out today’s stunning report by the ACLU’s Catherine Crump and Matthew Harwood on where the corporate world is taking your identity. Tom


Invasion of the Data Snatchers: Big Data and the Internet of Things Means the Surveillance of Everything

by Catherine Crump and Matthew Harwood

 

Home Invasion


"[W]e estimate that only one percent of things that could have an IP address do have an IP address today, so we like to say that ninety-nine percent of the world is still asleep," Padmasree Warrior, Cisco's Chief Technology and Strategy Officer, told the Silicon Valley Summit in December. "It’s up to our imaginations to figure out what will happen when the ninety-nine percent wakes up."

Yes, imagine it. Welcome to a world where everything you do is collected, stored, analyzed, and, more often than not, packaged and sold to strangers -- including government agencies.

In January, Google announced its $3.2 billion purchase of Nest, a company that manufactures intelligent smoke detectors and thermostats. The signal couldn’t be clearer. Google believes Nest’s vision of the “conscious home” will prove profitable indeed. And there’s no denying how cool the technology is. Nest’s smoke detector, for instance, can differentiate between burnt toast and true danger. In the wee hours, it will conveniently shine its nightlight as you groggily shuffle to the toilet. It speaks rather than beeps. If there’s a problem, it can contact the fire department.

The fact that these technologies are so cool and potentially useful shouldn’t, however, blind us to their invasiveness as they operate 24/7, silently gathering data on everything we do. Will companies even tell consumers what information they’re gathering? Will consumers have the ability to determine what they’re comfortable with? Will companies sell or share data gathered from your home to third parties? And how will companies protect that data from hackers and other miscreants?

The dangers aren’t theoretical. In November, the British tech blogger Doctorbeet discovered that his new LG Smart TV was snooping on him. Every time he changed the channel, his activity was logged and transmitted unencrypted to LG. Doctorbeet checked the TV’s option screen and found that the setting “collection of watching info” was turned on by default. Being a techie, he turned it off, but it didn’t matter. The information continued to flow to the company anyway.

As more and more household devices -- your television, your thermostat, your refrigerator -- connect to the Internet, device manufacturers will undoubtedly follow a model of comprehensive data collection and possibly infinite storage. (And don’t count on them offering you an opt-out either.) They have seen the giants of the online world -- the Googles, the Facebooks -- make money off their users’ personal data and they want a cut of the spoils. Your home will know your secrets, and chances are it will have loose lips.

The result: more and more of what happens behind closed doors will be open to scrutiny by parties you would never invite into your home. After all, the Drug Enforcement Administration already subpoenas utility company records to determine if electricity consumption in specific homes is consistent with a marijuana-growing operation. What will come next? Will eating habits collected by smart fridges be repackaged and sold to healthcare or insurance companies as predictors of obesity or other health problems -- and so a reasonable basis for determining premiums? Will smart lights inform drug companies of insomniac owners?

Keep in mind that when such data flows are being scrutinized, you’ll no longer be able to pull down the shades, not when the Peeping Toms of the twenty-first century come packaged in glossy, alluring boxes. Many people will just be doing what Americans have always done -- upgrading their appliances. It may not initially dawn on them that they are also installing surveillance equipment targeted at them. And companies have obvious incentives to obscure this fact as much as possible.

As the “conscious home” becomes a reality, we will all have to make a crucial and conscious decision for ourselves: Will I let this device into my home? Renters may not have that option. And eventually there may only be internet-enabled appliances.

Commercial Stalking


The minute you leave your home, the ability to avoid surveillance technologies masquerading as something else will, if anything, lessen.

Physical sensors connected to the Internet are increasingly everywhere, ready to detect a unique identifier associated with you, usually one generated by your smartphone, then log what you do and leverage the data you generate for insight into your life. For instance, Apple introduced iBeacon last year. It’s a service based on transmitters that employ Bluetooth technology to track where Apple users are in stores and restaurants. (The company conveniently turned on Bluetooth by default via a software update it delivered to Apple iPhone owners.) Apps that use iBeacon harvest a user’s data, including his or her location, and sometimes can even turn on a device’s microphone to listen in on what’s going on.

Another company, Turnstyle Solutions Inc., has placed sensors around Toronto that surreptitiously record signals emitted by WiFi-enabled devices and can track users’ movements. Turnstyle can tell, for instance, when a person who visited a restaurant goes to a bar or a hotel. When people log-on to WiFi networks Turnstyle has installed at area restaurants or coffee shops and check Facebook, the company can go far beyond location, collecting “names, ages, genders, and social media profiles,” according to the Wall Street Journal.

The rationale for apps that track where you are is that business owners can use the data to tailor the customer experience to your liking. If you’re wandering around the male grooming section of a particular retailer, the store could shoot you a coupon to convince you to purchase that full body trimmer that promises a smooth shave every time. If customers enter Macy’s and zig right more often than left, the store can strategically place what’s popular or on sale in those high-traffic areas. This is basically what’s happening online now, and brick and mortar stores want in so they can compete against the Amazons of the world.

Not so surprisingly, however, such handy technology has already led to discriminatory behavior by retailers. About a year ago, an investigation by the Wall Street Journal found that prices quoted by online retailers like Staples and Home Depot changed based on who the customer was. People who lived in higher-income areas generally received the best deals, which is a form of digital redlining. In the future, count on brick and mortar stores to do the same thing by identifying your phone, picking up data about you, and pricing items according to just how juicy a customer they think you may be.

To be able to do this, retailers need companies that can provide rich data about our lives. That’s where a group of pioneering companies in the new universe of customer surveillance called data aggregators come in. Already a multibillion-dollar industry, aggregators like Acxiom, Experian, and Datalogix buy customer data from wherever they can -- banks, travel websites, retailers -- and turn it into Big Data. Then they analyze, package, and sell it to third parties. “Our digital reach,” said Scott Howe, CEO of the largest data aggregator, Acxiom, “will soon approach nearly every Internet user in the U.S.”

Last December, the Senate Commerce Committee investigated the business practices of the nine largest data aggregators: what information they collect, how they obtain it, their invasiveness, and who they sell it to. The committee found that these companies collect information ranging from the relatively mundane to the incredibly sensitive, including names and addresses, income levels, and medical histories. They then sell it off without giving serious consideration to what the buyers might do with it.

In the process, you could find yourself categorized as part of a group of “Mid-Life Strugglers: Families” or “Meager Metro Means” or “Oldies but Goodies,” which aggregator InfoUSA described as “gullible” people who “want to believe their luck can change.” Think of it as high-tech commercial profiling of the most exploitative sort.

The result is the creation of a twenty-first century permanent record of your very own, which you are unlikely to ever be able to see because, as the Senate report warned, the industry operates under “a veil of secrecy” with little or no regulation. “Three of the largest companies -- Acxiom, Experian, and Epsilon -- to date have been similarly secretive with the committee with respect to their practices, refusing to identify the specific sources of their data or the customers who purchase it.”

Congress’s watchdog, the Government Accountability Office, reviewed U.S. privacy law and found that citizens generally do not have the right to control the scope of information collected about them or limit its use, even when it pertains to their health or their finances. And if the information is incorrect -- something you might never find out -- there’s no U.S. law that requires data aggregators to correct it.

Paul Ohm, a policy advisor to the Federal Trade Commission, calls these immense troves of personal information “databases of ruin.” He worries that, over time, these databases will include new waves of data -- maybe from your conscious home or location information from commercial sensors -- and so become ever more consolidated. Soon, he fears, “these databases will grow to connect every individual to at least one closely guarded secret. This might be a secret about a medical condition, family history, or personal preference. It is a secret that, if revealed, would cause more than embarrassment or shame; it would lead to serious, concrete, devastating harm.”

Sooner or later, with smart devices seamlessly using sensors and Big Data provided by data aggregators, it will be possible to pick you out of a crowd and identify you in complex ways in real time. If intelligent surveillance cameras armed with facial recognition technology have access to social media profiles as well as the information stored by data aggregators, a digital dossier of your life could be called up on-demand whenever your face is recognized. Imagine the power retailers and companies will exert over your life if they not only know who you are and where you are, but what your weaknesses are -- whether that’s booze, cigarettes, or the appealing mortgage rate with the sketchy small print. Are we looking at a future where the car salesman really does know what he has to do to put us in that car?

Big Data is creating the possibility of a far more entrenched, class-based surveillance society that discriminates using our perceived successes and preys on our weaknesses.

The Great Outdoors


Recently, Newark Liberty International Airport upgraded lighting fixtures at one of its terminals to a more eco-friendly alternative known as LEDs. It turns out, however, that energy efficiency wasn’t the only benefit of the purchase. The fixtures also double as a surveillance system of cameras and sensors that the Port Authority of New York and New Jersey is using to watch for long lines, identify license plates, and -- its officials claim -- spot suspicious behavior.

With all the spying going on these days, this may not seem particularly invasive, but don’t worry, the manufacturers of such systems are thinking much bigger. “We see outdoor lighting as the perfect infrastructure to build a brand new network,” said Hugh Martin, CEO of Sensity Systems, a Sunnyvale, California-based company interested in making lighting smart. “We felt what you’d want to use this network for is to gather information about people and the planet.”

Pretty soon, just about anywhere you are, when you look up at that light pole, it is likely to be looking back down at you. Or into your home or car.

Other surveillance technologies are heading for the heavens. Persistent Surveillance Systems has developed a surveillance camera on steroids. When attached to small aircraft, the 192-megapixel cameras record the patterns of the planetary life they fly over for hours at a time. According to the Washington Post, this will give the police and other customers a “time machine” they can simply rewind when they need it. Placed strategically at the highest points of any town or city, these cameras could provide the sort of blanket surveillance that’s hard to avoid. The inventor of the camera, a retired Air Force officer, helped create a similar system for the city of Fallujah, the site of two of the most violent battles of the U.S. occupation of Iraq. It’s just one example of how wartime surveillance technologies are returning home for “civilian use.”

Private surveillance technology is also destroying one of America’s iconic freedoms: the open road. License plate readers are proliferating across America. These devices snap a picture of every passing car. One company, Vigilant Solutions, already holds 1.8 billion license plate records in its data warehouse, known as the National Vehicle Location Service (NVLS). Anyone with access to this information could easily find out where a person has driven simply by connecting the plate to the car owner. And keep in mind that it’s up to the companies gathering them to determine just who can access the information -- data of immense interest to private investigators and anyone else curious to track another person’s movements.

Like many businesses that trade in Big Data or construct massive databases, Vigilant is in regular contact with government agencies craving access to its meaty stores of information.

If You Build It, They Will Come


In February, the Department of Homeland Security’s Immigration and Customs Enforcement (ICE) put out a solicitation to obtain access to a private license plate reader database for the purpose of “locating criminal aliens and absconders.” ICE claims that it wants to enhance officer safety by making it easier to arrest suspects away from their homes. When the mainstream media took notice and privacy advocates like the ACLU objected, new Homeland Security Secretary Jeh Johnson pulled the plug on the project.

A big win? Don’t count on it, because police departments already have easy access to commercial license plate repositories. In the past, Vigilant has, for instance, allowed ICE to test its service free of charge. Police often pony up the cash to access such databases. As a quick experiment, go to Vigilant’s NVLS registration page, click on the drop-down menu beside “Agency name,” and scroll down. Trust us, you’ll get bored by the staggering list of police departments before you reach the bottom.

Which brings us to an axiom of our digital age: law enforcement will exploit any database built, if it makes it easier to figure out what the rest of us are up to. Lucky for them, there’s a wealth of data out there and available. Experian, one of the largest data aggregators, told the Senate Commerce Committee that “government agencies” regularly purchase information from them.

Often, those agencies don’t even have to pay for the privilege of accessing our data. In many cases, such an agency can simply issue its own subpoena (not seen by a judge) and compel companies to turn over our sensitive data. The culprit here is known as the “third party doctrine,” which some courts have aggressively (and wrongly) interpreted to mean that any information disclosed to a third party isn’t really private.

The danger of the rise of Big Data and the Internet of Things is straightforward enough. Whenever data is perpetually generated, collected, and stored, the result is going to be a virtual ATM of user information that government agencies can withdraw from with ease. Last year, for instance, local, state, and federal authorities issued 164,000 subpoenas to Verizon and more than 248,000 subpoenas to AT&T for user information, while issuing nearly 7,500 subpoenas to Google during the first half of 2013.

The Internet of Things means that, soon enough, the authorities will have yet more ways to learn yet more about us.

Big Data, Little Democracy?


Here are two obvious questions for our surveillance future: Who controls the data generated by our devices? Without doing anything except buying and installing them, do we somehow consent to having every piece of data they generate shared with Big Business and sometimes Big Brother? No one should have to isolate themselves from society and technology in the ascetic mold of Henry David Thoreau -- or more ominously, Ted Kaczynski -- to have some semblance of privacy.

In the future, even going all Jeremiah Johnson might not have the effect intended, since law enforcement could interpret your lack of a solid digital footprint as inherently suspicious. This would be like a police officer growing suspicious of a home just because it was all dark and locked up tight.

When everything is increasingly tracked and viewed through the lens of technological omniscience, what will the effect be on dissent and protest? Will security companies with risk assessment software troll through our data and crunch it to identify people they believe have the propensity to become criminals or troublemakers -- and then share that with law enforcement? (Something like it already seems to be happening in Chicago, where police are using computer analytic programs to identify people at a greater risk of violent behavior.)

There’s simply no way to forecast how these immense powers -- disproportionately accumulating in the hands of corporations seeking financial advantage and governments craving ever more control -- will be used. Chances are Big Data and the Internet of Things will make it harder for us to control our own lives, as we grow increasingly transparent to powerful corporations and government institutions that are becoming more opaque to us.

Catherine Crump is a staff attorney with the ACLU’s Speech, Privacy, and Technology Project. She is a non-residential fellow with the Stanford Center for Internet and Society and an adjunct professor of clinical law at NYU. Her principle focus is representing individuals challenging the lawfulness of government surveillance programs. Follow her on Twitter at @CatherineNCrump.

Matthew Harwood is senior writer/editor with the ACLU. A TomDispatch regular, his work has been published by Al-Jazeera America, the American Conservative, the Columbia Journalism Review, the Guardian, Guernica, Reason, Salon, Truthout, and the Washington Monthly. He also regularly reviews books for the Future of Freedom Foundation. Follow him on Twitter at @mharwood31.

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Copyright 2014 Catherine Crump and Matthew Harwood

Monday, March 24, 2014

Valdez + 25






25 Years After Exxon Valdez, BP Was the Hidden Culprit

by Greg Palast  - Truthdig

Two decades ago I was the investigator for the legal team that sold you the bullshit that a drunken captain was the principal cause of the Exxon Valdez disaster, the oil tanker crackup that poisoned over a thousand miles of Alaska’s coastline 25 years ago on March 24, 1989.



A crew cleans up oil six years after the Exxon Valdez spill in Prince William Sound, Alaska. Photo by James McAlpine, © Palast Investigative Fund.

The truth is far uglier, and the real culprit—British Petroleum, now BP—got away without a scratch to its reputation or to its pocketbook.

And because BP’s willful negligence, prevarications and fraud in the Exxon Valdez spill cost the company nothing, its disdain for the law, for the environment and for the safety of its workers was repeated in the Gulf of Mexico with deadly consequences, resulting, two decades later, in the Deepwater Horizon disaster.

Just this month, the Obama administration authorized BP to return to drilling in the Gulf.

It would be worth the time of our ever-trusting regulators to take a look at my Exxon Valdez BP files. They would see a decades-long pattern of BP’s lies, bribes and cover-ups that led, inexorably, to the Deepwater Horizon blowout—and that continue today within BP’s worldwide oil operations.

Here is a sample from my files on BP from the original Exxon Valdez fraud and racketeering investigation:

Fraud No. 1: The Emergency Sucker Boat fraud

Containing an oil spill—preventing spilled crude from spreading to the shore—is not rocket science.

As the principal owner of the Alaska Pipeline and Terminal, BP, not Exxon, was designated by law to prevent oil spilled by the Exxon Valdez from hitting the beach. It was BP’s disastrous failures, more than Exxon’s, that allowed the oil to devastate Alaska’s coast.

To contain a spill all you need are rubbers and suckers. It works like this:

If a tanker, oil rig or pipe bursts open, you surround it with a giant rubber skirt known as “boom.” Then you suck the oil out through vacuum hoses on board special “containment” ships. The containment ship, which lays out the boom and skimmer hoses, is the firetruck of oil spills. You simply don’t let tankers out of port unless a containment ship is ready to roll. It’s against the law.

But the law has never meant much to BP.

In May 1977, as the first tankers left Valdez, BP executives promised the state of Alaska that no tanker would leave port unless there were two containment barges at the ready and loaded with boom, with one placed near Bligh Island.

In fact, on March 24, 1989, when the Exxon Valdez ran aground, right at Bligh Island, the containment barge was far away in Valdez, locked in a dry dock, its boom and hoses under Alaskan ice. As a result, by the time the emergency oil spill vessel got to the stricken ship, the oil slick was a hundred miles in circumference and beyond control.

Two decades later, I watched fireboats uselessly spraying the burning oil on the Deepwater Horizon. Once again there were no BP skimmer barges, no boom surrounding the rig. Just as in Alaska, the promised spill containment operation was a con. By the time the Navy set out 400 miles of rubber boom days later, the slick was already as big as Cuba and slathering the Gulf shores.

Recently, Chevron and other big oil giants, now drilling the Gulf, have printed a series of full-page ads in papers across America touting their new state-of-the-art oil spill containment operations. Hey, thanks. But these are the same vessels BP and its fellow Gulf drillers promised before the Deepwater Horizon blew apart.

Fraud No. 2: Ghost Crews

There’s no sense having a firetruck without firemen. And so, years before the Exxon Valdez grounding, Alyeska, the oil company consortium headed by BP, promised the U.S. Department of the Interior and the U.S. Congress, under oath, that the oil shipper would employ a trained and equipped crew around the clock to jump from helicopters, if needed, to contain an oil spill. My clients, the Chugach Natives of Alaska, agreed to give up ownership of the land under the Port of Valdez to the oil companies in return for those jobs.

The night the Exxon Valdez grounded, Chugach Natives watched from the beach at nearby Tatitlek Village as the tanker headed into the reef. They could have prevented the disaster—but they were helpless: BP had fired them.

In my team’s investigation for the Chugach, we discovered that, to save money, BP’s Alyeska simply drew up lists of nonexistent emergency spill response workers or wrote down names of untrained, unequipped dockworkers: an imaginary crew to man phantom emergency ships.

Fraud No. 3: Phantom Equipment

And the rubber boom? That was a phantom as well. BP’s Alyeska had promised that too, in writing. The equipment was supposed to be placed along the tanker route including Bligh Island—exactly the spot where the Exxon Valdez grounded.

And so, it was no surprise to me that 21 years later in the Gulf there were neither skimmers nor boom at the site of the Deepwater Horizon. The equipment was there, as in Alaska, only on paper.

Indeed, part of BP’s Gulf Coast response plan was a photocopy of the Alaska plan, including ways to wash down Arctic seals.

Cover-Up, Threats and Bribery

Did BP’s top executives and partners know of the ghost response teams and phantom equipment ruse? Yes, we have the documents and insiders’ testimony. Just three examples from my bulging file cabinet:

In a confidential letter dated April 19, 1984, Capt. James Woodle, BP’s commander of the port at Valdez, warned that “due to a reduction in manning, age of equipment, limited training and lack of personnel, serious doubt exists that [we] would be able to contain and clean up effectively a medium or large size oil spill.”

In response, BP threatened him with a file on his marital infidelities (fabricated), fired him, then forced him to destroy his files.

Ten months before the Exxon Valdez spill, BP’s Alyeska chief, Theo Polasek, told a secret meeting of the top executives of the Alaska group oil companies (including BP, Exxon and ConocoPhillips) that containing an oil spill “at the mid-point of Prince William Sound [is] not possible with present equipment.” But no change was made. Polasek was denied the funds needed to protect the mid-Sound—exactly where the tanker grounded.

In September 1984, before the Exxon Valdez disaster, BP’s shipping broker, Charles Hamel, was so concerned at what he saw as an immediate danger in Alaska that he flew by Concorde to London to warn BP’s chiefs of the looming emergency. In response, BP hired ex-CIA operatives to tap Hamel’s phone and intercept his mail. BP’s black ops team even ran a toy truck with a microphone into the air vents of a building where he was speaking with a congressman. (Ultimately, BP’s spooks were captured by a team of Navy SEALs.)

BP Gets Off Cheap

The team of attorneys representing the Natives and fishermen whose lives were destroyed by the tanker spill chose to hold back the true and ugly story of systematic fraud and penny-pinching negligence by BP and its partners. We focused instead on the simpler story of human frailty and error—“drunken skipper hits reef.”

We didn’t have a choice: Oil company chiefs had told our clients—Natives who were out of cash, isolated and desperate—that they wouldn’t get a dime unless we agreed not to use the “f-word”: fraud. Exxon would withhold payment for 20 years.

We buried the fraud charges—yet Exxon still didn’t pay for 22 years. By that time, a third of the Natives and fishermen in the lawsuit were dead.

And BP? Who said crime doesn’t pay? BP walked away with a nominal payment to Alaska’s Natives, fishermen and towns of $125 million—100 percent of it covered by insurance.

And that’s what led, years later, to the incineration of 11 men on the Deepwater Horizon and 600 miles of Gulf coastline still poisoned today.

BP and other oil companies have a clear motive for these safety games: skimmer barges, crews, equipment and operations cost billions of dollars a year worldwide to man and maintain. It’s cheaper to lie, cover up and buy the favor of politicians and regulators.

In London, BP executives told me on camera of their systematic bribery of presidents and their minions in the new Caspian Sea oil states. (Bribery charges against one bagman were dropped when in 2010 the National Security Agency acknowledged that it had authorized the bribes.)

But it’s not just “over there” that BP spreads its largesse. BP’s original sweetheart oil leases in the Gulf and the light hand of regulators were doubtless the result of favors—monetary and sexual—that the company lavished on U.S. regulatory agents at the Minerals Management Service, an agency that President Obama shuttered in response to the Deepwater Horizon blowout.

There’s also the monetary and political love laid upon America’s powerful. Although a foreign company, BP’s chief in Alaska, Bob Malone, became a co-chairman and fundraiser for George W. Bush’s election campaign.

Polluted Shores, Polluted Politics

In 2010 for the U.K.’s Channel 4 Television, I returned to Alaska with filmmaker Richard Rowley. In the quiet rivulets of the islands within Prince William Sound, we picked up gobs of oil with the telltale chemical markers of the Exxon Valdez. Then we flew to the Gulf Coast with Alaskan oil spill biologist Rick Steiner—and found miles and miles of BP’s oil oozing under beaches the company and the Obama administration had already declared clean.

Yet just last week, BP was awarded more tracts to drill in the Gulf even as its onetime vice president for Gulf exploration, David Rainey, stands trial on felony charges of obstruction of Congress.

It is clear that neither BP, its partners nor this administration can be trusted to safely punch more miles-deep holes in the Gulf of Mexico. As long as oil companies can pad their bottom line by scoffing at the law, as long as they can cheaply pollute the political process, the next disaster is not a matter of if, but when.

Palast’s investigation of BP opens his latest film, “Vultures and Vote Rustlers.” Prerelease editions are available on DVD and download for a donation to Palast’s foundation for investigative reporting.

And read the complete untold story of the Exxon Valdez and Deepwater Horizon disasters in Palast’s “Vultures’ Picnic,” BBC Newsnight’s Culture Program’s Book of the Year.

Sunday, March 23, 2014

Basta! Removing Venezuela's Fascist Footholds

Defeating Fascism before it’s too Late

by James Petras

Captain Jose Guillen Araque, of the Venezuelan National Guard, recently gave President Maduro a book on the rise of Nazism, warning that “fascism has to be defeated before it’s too late”!

In retaliation for his prophetic warning, the patriotic young captain was shot by a US-backed assassin on the streets of Marcay in the state of Aragua on March 16, 2014. This raised the number of Venezuelan soldiers and police killed since the fascist uprising to 29.

The killing of a prominent, patriotic officer on a major street in a provincial capital is one more indication that the Venezuelan fascists are on the move, confident of their support from Washington and from a broad swath of the Venezuelan upper and middle class. They constitute a minority of the electorate and they have no illusions about taking power via constitutional and democratic means.


Captain Guillen Araque had stepped forward to remind President Maduro that the road to power for Nazi and fascist totalitarian groups has been littered with the corpses of well-meaning democrats and social democrats throughout contemporary history because of their failure to use their constitutional powers to crush the enemies of democracy.


Introduction


The History of the rise of Fascism under Democracies


The term “fascist” in Venezuela is appropriately applied to the organized violent political groups currently engaged in mass terror in a campaign to destabilize and overthrow the democratically-elected Bolivarian government. Academic purist might argue that the Venezuelan fascists lack the racist and nationalist ideology of their German, Italian, Spanish and Portuguese predecessors. While true, it is also irrelevant.

The Venezuelan brand of fascism is highly dependent on, and acts as a proxy for, US imperialism and their Colombian warlord allies. In one sense however, Venezuelan fascism’s racism is directed against its multiracial African-Amerindian Venezuelan working and peasant classes – as demonstrated by their vitriolic racism against the deceased President Hugo Chavez.

The essential connection with earlier fascist movements is found in its (1) profound class hostility to the popular majority; (2) its visceral hatred of the Chavista Socialist Party, winner of 18 of the last 19 elections; (3) its resort to the armed seizure of power by a minority acting on behalf of the domestic and US imperial ruling classes; (4) its intention to destroy the very democratic institutions and procedures which it exploits in order to gain political space; (5) its targeting of working class institutions – communal councils, neighborhood associations, public health and dental clinics, public schools, transport, subsidized food stores, political meeting places, public credit unions, trade union organizations and peasant co-operatives; (6) and its support of capitalist banks, huge commercial landed estates and manufacturing firms.

In Germany, Italy, Spain, France and Chile, fascist movements also began as small terrorist groups, who gained the financial backing of the capitalist elite because of their violence against working class organizations and democratic institutions and recruited primarily among middle class university students, elite professionals (especially doctors) and active and retired higher military officers – united in their hostility to the democratic order.

Tragically and all too often, democratic leaders, operating within a constitutional government, tended to regard fascists as “just another party”, refusing or unwilling to crush the armed thugs, who combined terror in the streets with elections to gain state power. Constitutionalist democrats have failed or were unwilling to see the political, civilian arm of the Nazis as part and parcel of one organic totalitarian enemy; so they negotiated and debated endlessly with elite fascists who meanwhile destroyed the economy while terrorists pounded away at the political and social foundations of the democratic state. The democrats refused to send out their multi-million mass supporters to face the fascist hordes. Worse, they even prided themselves on jailing their own supporters, police and soldiers, who had been accused of using ‘excessive force’ in their confrontation with fascist street thugs. Thus the fascists easily moved from the streets to state power. The elected democrats were so concerned about criticism from the international and capitalist media, elite critics and self-appointed ‘human rights’ organizations, that they facilitated the takeover by fascists. The people’s right to the armed defense of their democracy had been subordinated to the pretext of upholding ‘democratic norms’ - norms that any bourgeois state under assault would have rejected! Constitutional democrats failed to recognize how drastically politics had changed. They were no longer dealing with a parliamentary opposition preparing for the next election; they were confronted with armed terrorists and saboteurs committed to armed struggle and the seizure of political power by any means – including violent coups-d’états.

In the lexicon of fascism, democratic conciliation is a weakness, a vulnerability and an open invitation to escalate violence; ‘peace and love’ and ‘human rights’ slogans are to be exploited; calls for ‘negotiations’ are preambles for surrender; and ‘agreements’ preludes to capitulation.

To the terrorists, the democratic politicians who warn about a “threat of fascism” while acting as if they were engaged in ‘parliamentary skirmishes’, become an open target for violent attack.

This is how the fascists came to power, in Germany, Italy and Chile, while the constitutionalist democrats, to the last, refused to arm the millions of organized workers who could have throttled the fascists and saved democracy and preserved their own lives.

Fascism in Venezuela: A Mortal Threat Today


The martyred hero, Captain Guillen Araque’s warning of an imminent fascist danger in Venezuela has a powerful substantive basis. While the overt terrorist violence ebbs and flows, the underlying structural basis of fascism in the economy and society remains intact. The subterranean organizations, financing and organizing the flow of arms to fascists-in-waiting remain in place.

The political leaders of the opposition are playing a duplicitous game, constantly moving from legal forms of protest to sub-rosa complicity with the armed terrorists. There is no doubt that in any fascist putsch, the political oligarchs will emerge as the real rulers – and will share power with the leaders of the fascist organizations. In the meantime, their ‘respectability’ provides political cover; their ‘human rights’ campaigns to free incarcerated street thugs and arsonists earn ‘international media support’ while serving as ‘intermediaries’ between the open US funding agencies, and the clandestine terrorist underground.

In measuring the scope and depth of the fascist danger, it is a mistake to simply count the number of bombers, arsonists and snipers, without including the logistical, back-up and peripheral support groups and institutional backers who sustain the overt actors,

To ‘defeat fascism before it is too late’, the government must realistically assess the resources, organization and operational code of the fascist command and reject the overly sanguine and ‘upbeat’ pronouncements emanating from some ministers, advisers and legislators.

First, the fascists are not simply a small band confined to pounding on pots and attacking municipal workers in the upper-middle class neighborhoods of Caracas for the benefit of the international and corporate media. The fascists are organized on a national basis; their members are active throughout the country.

They target vital institutions and infrastructure in numerous strategic locations.

Their strategy is centrally-controlled, their operations are decentralized.

The fascists are an organized force; their financing, arming and actions are planned. Their demonstrations are not ‘spontaneous’, locally-organized actions, responding to government ‘repression’ as depicted in the bourgeois and imperial media.

The fascists bring together different cross currents of violent groups, frequently combining ideologically-driven right-wing professionals, large-scale smuggling gangs and drug traffickers (especially in border regions), paramilitary groups, mercenaries and known felons. These are the ‘frontline fascists’, financed by major currency speculators, protected by elected local officials, offered ‘sanctuary’ by real estate investors and high-level university bureaucrats.

The fascists are both ‘nationals’ and internationals: They include locally paid thugs and students from upper-middle class families; paramilitary Colombian soldiers, professional mercenaries of all sorts, ‘contract killers’ from US ‘security’ outfits and clandestine US Special Forces Operatives; and fascist ‘internationalists’ recruited from Miami, Central America, Latin America and Europe.

The organized terrorists have two strategic sanctuaries for launching their violent operations - Bogota and Miami, where prominent political leaders, like ex-President Alvaro Uribe and US Congressional leaders provide political support.

The convergence of highly lucrative criminal economic activity and political terrorism presents a formidable double threat to the stability of the Venezuelan economy and the security of the state . . . Criminals and terrorists find a common home under the US political tent, designed to overthrow Venezuela’s democratic government and crush the Bolivarian revolution of the Venezuelan people.

The backward and forward inter-linkages between criminals and terrorists inside and outside the country, between Washington senior policymakers, street drug pushers and contraband ‘camels’, provides the international elite mouthpieces and the muscle for street fighters and snipers.

Terrorist targets are not chosen at ‘random’; they are not products of an enraged citizenry protesting social and economic inequities. The carefully chosen targets of terrorism are the strategic programs which sustain the democratic administration; first and foremost the mass social institutions forming the base of the government. This explains why terrorists bomb health clinics for the poor, public schools and centers for adult education in the barrios, the state subsidized food stores and the public transport system. These are part of the vast, popular welfare system set up by the Bolivarian government. They are key building blocks in securing massive voter support in 18 out of the last 19 elections and popular power in the streets and communities. By destroying the social welfare infrastructure, the terrorists hope to break the social bonds between people and government.

Terrorists target the legitimate national security system: Namely, the police, National Guard, judges, public prosecutors and other authorities in charge of safeguarding citizens. The assassinations, violent attacks and threats against public officials, the fire-bombing of public buildings and public transport are designed to create a climate of fear and to demonstrate that the state is weak and incapable of protecting the everyday life of its citizens. The terrorists want to project an image of ‘dual power’ by seizing public spaces and blocking normal commerce… and by ‘governing the streets through the gun’. Above all the terrorists want to demobilize and curtail popular counter-demonstrations by blocking streets and sniping at activists engaged in political activity in contested neighborhoods. The terrorists know they can count on their ‘legal’ political opposition allies to provide them with a mass base via public demonstrations, which can serve as a shield for violent assaults and a pretext for greater sabotage.

Conclusion


Fascism, namely armed terrorism directed at violently overthrowing a democratic government, is a real and immediate threat in Venezuela. The day-to-day, ups and downs of street fighting and arson are not an adequate measure of the threat. As we have noted, the in-depth structural and organizational supports underlying the rise and growth of fascism are far more important. The challenge in Venezuela is to cut-off the economic and political basis of fascism. Unfortunately, up until recently the government has been overly sensitive to hostile criticism from overseas and domestic elites who rush to defend fascists – in the name of “democratic freedom”. The government of Venezuela has enormous resources at its disposal to root out the fascist threat. Even if firm action causes an outcry from overseas liberal friends, most pro-democracy advocates believe it is incumbent upon the government to act against those opposition officials who continue to incite armed rebellion.

Most recently, there have been clear signs that the Venezuelan government, with its powerful democratic and constitutional mandate, is moving with awareness of the fascist danger and will act with determination to stamp it out in the streets and in the suites.

The National Assembly has voted to strip Congresswoman Corina Machado of her immunity as a deputy in the National Assembly so she can be prosecuted for inciting violence. The President of the National Assembly Diosdado Cabello has presented detailed documentary evidence of her role in organizing and promoting armed rebellion. Several opposition mayors, actively involved in promoting and protecting snipers, street thugs and arsonists, have been charged and arrested.

The majority of Venezuelans confronted by the rising tide of fascist violence support the punishment of these high officials engaged in or supporting sabotage. Without firm action, Venezuelan intelligence agencies as well as the average citizen agree that these ‘opposition’ politicos will continue to promote violence and provide sanctuary for paramilitary assassins.

The government has realized that they are engaged in a real war, planned by a centralized leadership and executed by decentralized operatives. Legislative leaders are coming to grips with the political psychology of fascism, which interprets Presidential offers of political conciliation and judicial leniency as weakness to be exploited by further violence. The most significant advance toward stopping the fascist threat lies in the government’s recognition of the links between the parliamentary and business elite and the fascist terrorists: financial speculators, smugglers and big-time hoarders of food and other essential commodities are all part and parcel of the same fascist drive for power together with the terrorists who bomb public food markets and attack the trucks transporting food to the poor neighborhoods. One revolutionary worker said to me after a street skirmish: “Por la razon y la fuerza no pasaran!”(Through reason and force they will be defeated)…

Australia's Next Stolen Generation

Another Stolen Generation: How Australia Still Wrecks Aboriginal Families

by John Pilger - Information Clearing House 

The tape is searing. There is the voice of an infant screaming as he is wrenched from his mother, who pleads, "There is nothing wrong with my baby. Why are you doing this to us? I would've been hung years ago, wouldn't I? Because [as an Aboriginal Australian] you're guilty before you're found innocent." The child's grandmother demands to know why "the stealing of our kids is happening all over again". A welfare official says, "I'm gunna take him, mate."

This happened to an Aboriginal family in outback New South Wales. It is happening across Australia in a scandalous and largely unrecognised abuse of human rights that evokes the infamous stolen generation of the last century. Up to the 1970s, thousands of mixed-race children were stolen from their mothers by welfare officials. The children were given to institutions as cheap or slave labour; many were abused.






Described by a chief protector of Aborigines as "breeding out the colour", the policy was known as assimilation. It was influenced by the same eugenics movement that inspired the Nazis. In 1997 a landmark report, Bringing Them Home, disclosed that as many 50,000 children and their mothers had endured "the humiliation, the degradation and sheer brutality of the act of forced separation ... the product of the deliberate, calculated policies of the state". The report called this genocide.

Assimilation remains Australian government policy in all but name. Euphemisms such as "reconciliation" and "Stronger Futures" cover similar social engineering and an enduring, insidious racism in the political elite, the bureaucracy and wider Australian society. When in 2008 prime minister Kevin Rudd apologised for the stolen generation, he added: "I want to be blunt about this. There will be no compensation." The Sydney Morning Herald congratulated Rudd on a "shrewd manoeuvre" that "cleared away a piece of political wreckage in a way that responds to some of its own supporters' emotional needs, yet changes nothing".

Today, the theft of Aboriginal children – including babies taken from the birth table – is now more widespread than at any time during the last century. As of June last year, almost 14,000 Aboriginal children had been "removed". This is five times the number when Bringing Them Home was written. More than a third of all removed children are Aboriginal – from 3% of the population. At the present rate, this mass removal of Aboriginal children will result in a stolen generation of more than 3,300 children in the Northern Territory alone.

Pat (not her real name) is the mother whose anguish was secretly recorded on a phone as four department of child services officials, and six police, descended on her home. On the tape an official claims they have come only for an "assessment". But two of the police officers, who knew Pat, told her they saw no risk to her child and warned her to "get out of here quick". Pat fled, cradling her infant, but the one-year-old was eventually seized without her knowing why. The next morning a police officer returned to apologise to her and said her baby should never have been taken away. Pat has no idea where her son is.

Once she was "invited" by officials to bring her children to "neutral" offices to discuss a "care plan". The doors were locked and officials seized the children, with one of the youngest dragging on a police officer's gun belt. Many Indigenous mothers are unaware of their legal rights. A secretive children's court has become notorious for rubber-stamping removals.

Most Aboriginal families live on the edge. Their life expectancy in towns a short flight from Sydney is as low as 37. Dickensian diseases are rife; Australia is the only developed country not to have eradicated trachoma, which blinds Aboriginal children.

Pat has both complied with and struggled bravely against a punitive bureaucracy that can remove children on hearsay. She has twice been acquitted of false charges, including "kidnapping" her own children. A psychologist has described her as a capable and good mother.

Josie Crawshaw, the former director of a respected families' support organisation in Darwin, told me: "In remote areas, officials will go in with a plane in the early hours and fly the child thousands of kilometres from their community. There'll be no explanation, no support, and the child may be gone forever."

In 2012 the co-ordinator general of remote services for the Northern Territory, Olga Havnen, was sacked when she revealed that almost A$80m (£44m) was spent on the surveillance and removal of Aboriginal children compared with only A$500,000 (£275,000) on supporting the same impoverished families. She told me:

"The primary reasons for removing children are welfare issues directly related to poverty and inequality. The impact is just horrendous because if they are not reunited within six months, it's likely they won't see each other again. If South Africa was doing this, there'd be an international outcry."

She and others with long experience I have interviewed have echoed the Bringing them Home report, which described an official "attitude" in Australia that regarded all Aboriginal people as "morally deficient". A department of family and community services spokesman said that most removed Indigenous children in New South Wales were placed with Indigenous carers. According to Indigenous support networks, this is a smokescreen; it does not mean families, and it is control by divisiveness that is the bureaucracy's real achievement.

I met a group of Aboriginal grandmothers, all survivors of the first stolen generation, all now with stolen grandchildren. "We live in a state of fear, again," they said. David Shoebridge, a state Greens MP, told me: "The truth is, there is a market among whites for these kids, especially babies."

The New South Wales parliament is soon to debate legislation that introduces forced adoption and "guardianship". Children under two years old will be liable – without the mother's consent – if "removed" for more than six months. For many Aboriginal mothers like Pat, it can take six months merely to make contact with their children. "It's setting up Aboriginal families to fail," said Shoebridge.

I asked Josie Crawshaw why.

"The wilful ignorance in Australia about its first people has now become the kind of intolerance that gets to the point where you can smash an entire group of humanity and there is no fuss."



www.johnpilger.com