28 December 2013

Judge on NSA Case Cites 9/11 Report, But It Doesn’t Actually Support His Ruling

by Justin Elliott
ProPublica, Dec. 28, 2013, 11:35 a.m.

Update Dec. 28, 2013: In a new decision in support of the NSA's phone metadata surveillance program, U.S. district court Judge William Pauley cites an intelligence failure involving the agency in the lead-up to the 9/11 attacks. But the judge's cited source, the 9/11 Commission Report, doesn't actually include the account he gives in the ruling. What’s more, experts say the NSA could have avoided the pre-9/11 failure even without the metadata surveillance program.

We previously explored the key incident in question, involving calls made by hijacker Khalid al-Mihdhar from California to Yemen, in a story we did over the summer, which you can read below.

Paul Krugman: The Fear Economy

More than a million unemployed Americans are about to get the cruelest of Christmas “gifts.” They’re about to have their unemployment benefits cut off. You see, Republicans in Congress insist that if you haven’t found a job after months of searching, it must be because you aren’t trying hard enough. So you need an extra incentive in the form of sheer desperation.

As a result, the plight of the unemployed, already terrible, is about to get even worse. Obviously
those who have jobs are much better off. Yet the continuing weakness of the labor market takes a
toll on them, too. So let’s talk a bit about the plight of the employed.

The entire economy is a house of cards waiting to tumble

by David Atkins

Yesterday Digby highlighted the outstanding piece by Matt Taibbi on HSBC executives avoiding even a second of jail time for engaging in blatant drug money laundering for major cartels.

The most shocking bit bears repeating:

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.
Now, there are a lot of people who read that statement and say "Bull." It's widely assumed on the right that this is just another example of liberal crony capitalism, that all we need to do is let capitalism and the legal system take their course, watch those liberal Brits and New Yorkers flounder, and the free market will take care of everything. Liberals tend to think that campaign finance, big bank lobbying, neoliberal ethics and big business corruption in general leads the justice department to make excuses for the failure to see justice done.

But I would posit a far more shocking conclusion: that the authorities actually believe it when they say such things. And an even more shocking conclusion: that they may well be right.

50 Is the New 65: Older Americans Are Getting Booted from Their Jobs -- and Denied New Opportunities

By Lynn Stuart Parramore


This is not just a story of people in their 60s or 70s. Workers as young as 50 are shocked to find themselves suddenly tossed onto the employment rubbish heap, just when they felt on top of their game. They’re feeling stressed, angry and betrayed by a society which has benefited greatly from their contributions.

As the global population grows older, age discrimination is on the rise. It could be headed for you, much sooner than you think.

The Past and Future of America's Social Contract

By Josh Freedman and Michael Lind


The problem of low pay has dominated headlines this year thanks to striking fast food workers, tone-deaf employers, and a spate of successful campaigns to raise state and local minimum wages.

Behind the news cycle, however, there’s a deeper issue than what Walmart or McDonald’s pay their workers today. Americans are once again wrestling with what they fundamentally want from the social contract—the basic bargain most of us can expect from the economy throughout our lives.

A generation ago, the country’s social contract was premised on higher wages and reliable benefits, provided chiefly by employers. In recent decades, we’ve moved to a system where low wages are supposed to be made bearable by low consumer prices and a hodgepodge of government assistance programs. But as dissatisfaction with this arrangement has grown, it is time to look back at how we got here and imagine what the next stage of the social contract might be.

David Cay Johnston: District Court Rebukes IRS Church Plan Rulings

The IRS Office of Chief Counsel came in for sharp criticism from a federal judge in the first significant decision in five lawsuits by workers who complain that the IRS is helping employers quietly strip away their pension rights.
 
Hundreds of thousands of workers at hospitals and other nonprofit organizations have been moved into so-called church pension plans, which are exempt from ERISA. IRS private letter rulings enabled each of these moves.
 
Most of the nonprofits that were granted IRS approval to operate as church plans exempt from ERISA were seriously under funded, the trustees having failed to set aside enough money to pay the old-age benefits workers had earned. The federal government guarantees the pensions of workers in ERISA plans, although when a plan fails, workers typically get less than they had been promised. Workers moved into church plans, however, lose the federal guarantee.

Focus on Ocean’s Health as Dolphin Deaths Soar

By LIZETTE ALVAREZ
Published: December 22, 2013

MIAMI — Like a macabre marine mystery, the carcasses — many badly deteriorated and tossing about in the surf — first turned up along the coast of New Jersey in June. Soon, droves of them washed up in Virginia, the Carolinas, Georgia and most recently Florida, their winter home.

So far this year, nearly 1,000 bottlenose dolphins — eight times the historical average — have washed up dead along the Eastern Seaboard from New York to Florida, a vast majority of them victims of morbillivirus. Many more are expected to die from the disease in the coming months.

Joseph E. Stiglitz: In No One We Trust

In America today, we are sometimes made to feel that it is naïve to be preoccupied with trust. Our songs advise against it, our TV shows tell stories showing its futility, and incessant reports of financial scandal remind us we’d be fools to give it to our bankers.

That last point may be true, but that doesn’t mean we should stop striving for a bit more trust in our society and our economy. Trust is what makes contracts, plans and everyday transactions possible; it facilitates the democratic process, from voting to law creation, and is necessary for social stability. It is essential for our lives. It is trust, more than money, that makes the world go round.

We do not measure trust in our national income accounts, but investments in trust are no less important than those in human capital or machines.

Ninety-Nine Years Ago: A Pause in the War on Christmas

Wednesday, 25 December 2013 11:00  
By David Swanson, War Is a Crime | Op-Ed 

Frank Richards Recalled:
"On Christmas morning we stuck up a board with 'A Merry Christmas' on it. The enemy had stuck up a similar one. Platoons would sometimes go out for twenty-four hours' rest -- it was a day at least out of the trench and relieved the monotony a bit -- and my platoon had gone out in this way the night before, but a few of us stayed behind to see what would happen. Two of our men then threw their equipment off and jumped on the parapet with their hands above their heads. Two of the Germans done the same and commenced to walk up the river bank, our two men going to meet them. They met and shook hands and then we all got out of the trench.

"Buffalo Bill [the Company Commander] rushed into the trench and endeavoured to prevent it, but he was too late: the whole of the Company were now out, and so were the Germans. He had to accept the situation, so soon he and the other company officers climbed out too.

Leaves of Poison 

Why are children working in American tobacco fields?

By Gabriel Thompson, The Nation, November 14, 2013 

The air was heavy and humid on the morning the three Cuello sisters joined their mother in the tobacco fields. The girls were dressed in jeans and long-sleeve shirts, carried burritos wrapped in aluminum foil, and had no idea what they were getting themselves into. "It was our first real job," says Neftali, the youngest. She was 12 at the time. The middle sister, Kimberly, was 13. Yesenia was 14.

Their mother wasn't happy for the company. After growing up in Mexico, she hadn't crossed the border so that her kids could become farmworkers. But the girls knew their mom was struggling. She had left her husband and was supporting the family on the minimum wage. If her girls worked in the tobacco fields, it would quadruple the family's summer earnings. "My mom tends to everybody,"  Neftali says. This was a chance to repay that debt.

Tomgram: Rebecca Solnit, The Future Needs Us

Posted by Rebecca Solnit at 4:50pm, December 22, 2013.

The Arc of Justice and the Long Run
Hope, History, and Unpredictability
 

By Rebecca Solnit

North American cicada nymphs live underground for 17 years before they emerge as adults. Many seeds stay dormant far longer than that before some disturbance makes them germinate. Some trees bear fruit long after the people who have planted them have died, and one Massachusetts pear tree, planted by a Puritan in 1630, is still bearing fruit far sweeter than most of what those fundamentalists brought to this continent. Sometimes cause and effect are centuries apart; sometimes Martin Luther King’s arc of the moral universe that bends toward justice is so long few see its curve; sometimes hope lies not in looking forward but backward to study the line of that arc.

Three years ago at this time, after a young Tunisian set himself on fire to protest injustice, the Arab Spring was on the cusp of erupting. An even younger man, a rapper who went by the name El Général, was on the verge of being arrested for “Rais Lebled” (a tweaked version of the phrase “head of state”), a song that would help launch the revolution in Tunisia.

Paul Krugman: Bits and Barbarism

This is a tale of three money pits. It’s also a tale of monetary regress — of the strange determination of many people to turn the clock back on centuries of progress.

The first money pit is an actual pit — the Porgera open-pit gold mine in Papua New Guinea, one of the world’s top producers. The mine has a terrible reputation for both human rights abuses (rapes, beatings and killings by security personnel) and environmental damage (vast quantities of potentially toxic tailings dumped into a nearby river). But gold prices, while down from their recent peak, are still three times what they were a decade ago, so dig they must.

PBS Drops a Bombshell on the Federal Reserve’s 100th Birthday Party

By Pam Martens: December 22, 2013

PBS promised a “debate” this past Friday night on the “benefits and dangers” of the Federal Reserve as the Fed marks its 100 years of existence tomorrow. Instead of a debate, two famous stock market historians made the same stunning announcement – that the Fed has decided its job is to push up the stock market.

Consuelo Mack’s Wealthtrack program on PBS had invited James Grant, Editor and Founder of Grant’s Interest Rate Observer, and Richard Sylla, the Henry Kaufman Professor of the History of Financial Institutions and Markets at NYU’s Stern School of Business. The opening scene for the program shows Sylla in a party hat lighting the candles on the Fed’s birthday cake while Grant snuffs them out – suggesting that Sylla would be making pro-Fed statements while Grant would take the opposing view.

How America abandoned its “undeserving” poor

With poverty on the rise in the late 1970s, Reagan conservatives waged war on the needy — and won 

Michael B. Katz

After the mid-1970s progress against poverty stalled. The 1973 oil crisis ushered in an era of growing inequality interrupted only briefly by the years of prosperity during the 1990s. Productivity increased, but, for the first time in American history, its gains were not shared by ordinary workers, whose real incomes declined even as the wealth of the rich soared. Poverty concentrated as never before in inner city districts scarred by chronic joblessness and racial segregation. America led western democracies in the proportion of its children living in poverty. It led the world in rates of incarceration. Trade union membership plummeted under an assault by big business abetted by the federal government. Policy responded by allowing the real value of the minimum wage, welfare benefits, and other social protections to erode. The dominant interpretation of America’s troubles blamed the War on Poverty and Great Society and constructed a rationale for responding to misery by retrenching on social spending. A bipartisan consensus emerged for solving the nation’s social and economic problems through a war on dependence, the devolution of authority, and the redesign of public policy along market models.

Truman’s True Warning on the CIA


Exclusive: National security secrecy and a benighted sense of “what’s good for the country” can be a dangerous mix for democracy, empowering self-interested or misguided officials to supplant the people’s will, as President Truman warned and ex-CIA analyst Ray McGovern explains.

By Ray McGovern

Fifty years ago, exactly one month after John Kennedy was killed, the Washington Post published an op-ed titled “Limit CIA Role to Intelligence.” The first sentence of that op-ed on Dec. 22, 1963, read, “I think it has become necessary to take another look at the purpose and operations of our Central Intelligence Agency.”

It sounded like the intro to a bleat from some liberal professor or journalist. Not so. The writer was former President Harry S. Truman, who spearheaded the establishment of the CIA 66 years ago, right after World War II, to better coordinate U.S. intelligence gathering. But the spy agency had lurched off in what Truman thought were troubling directions.

Charts: The Worst Long-Term Unemployment Crisis Since the Depression

Corporate profits have rebounded while more than four million Americans have been without work for six months or longer.

Researchers Find Factors Tied To Voting Restriction Bills Are 'Basically All Racial'

Eric Lach –

NAFTA at 20: State of the North American Farmer

In the United States and throughout North America, NAFTA has accelerated the industrial consolidation of agriculture and pushed out smaller, more sustainable food producers.

By Karen Hansen-Kuhn,

Foreign Policy In Focus is partnering with Mexico’s La Jornada del campo magazine, where an earlier version of this commentary appeared, to publish a series of pieces examining the impacts of the North American Free Trade Agreement (NAFTA) 20 years since its implementation. This is the second in the series.

One of the clearest stories to emerge in the two decades since the North American Free Trade Agreement (NAFTA) was implemented is the devastation wreaked on the Mexican countryside by dramatic increases in imports of cheap U.S. corn.

But while Mexican farmers, especially small-scale farmers, undoubtedly lost from the deal, that doesn’t mean that U.S. farmers have won. Prices for agricultural goods have been on a roller coaster of extreme price volatility — caused by unfair agriculture policies and recklessly unregulated speculation on commodity markets, as well as by increasing droughts and other climate chaos. Each time prices take their terrifying ride back down, more small- and medium-scale farmers are forced into bankruptcy, concentrating land ownership and agricultural production into ever fewer hands.