August 2013 archive

The best that you can do

NSA cites case as success of phone data-collection program

By Ellen Nakashima, Washington Post

Published: August 8

He was a San Diego cab driver who fled Somalia as a teenager, winning asylum in the United States after he was wounded during fighting among warring tribes. Today, Basaaly Moalin, 36, is awaiting sentencing following his conviction on charges that he sent $8,500 to Somalia in support of the terrorist group al-Shabab.

Moalin’s prosecution, barely noticed when the case was in court, has suddenly come to the fore of a national debate about U.S. surveillance. Under pressure from Congress, senior intelligence officials have offered it as their primary example of the unique value of a National Security Agency program that collects tens of millions of phone records from Americans.

Officials have said that NSA surveillance tools have helped disrupt terrorist plots or identify suspects in 54 cases in the United States and overseas. In many of those cases, an agency program that targets the communication of foreigners, including e-mails, has proved critical.



(I)n 2007, the NSA came up with a number in Somalia that it believed was linked to al-Shabab. It ran the number against its database.



The NSA found that the San Diego number had had “indirect” contact with “an extremist outside the United States,” FBI Deputy Director Sean Joyce told the Senate last week. The agency passed the number to the FBI, which used an administrative subpoena to identify it as Moalin’s. Then, according to court records, in late 2007, the bureau obtained a wiretap order and over the course of a year listened to Moalin’s conversations. About 2,000 calls were intercepted.



In 2009, an FBI field intelligence group assessed that Moalin’s support for al-Shabab was not ideological. Rather, according to an FBI document provided to his defense team, Moalin probably sent money to an al-Shabab leader out of “tribal affiliation” and to “promote his own status” with tribal elders.

In 2010, three years after the bureau opened an investigation, it arrested Moalin as he was about to board a flight to Somalia to visit his wife and children.



U.S. officials argue that Moalin’s number probably would not have surfaced – at least not in a timely fashion – had it not been for the database.



Such arguments do not persuade critics, even when the government asserts that the database helped break another case involving a co-conspirator in a plot to bomb the New York City subway system. “In both cases,” Sen. Ron Wyden (D-Ore.) said recently on the Senate floor, “the government had all the information it needed to go to the phone company and get an individual court order.”

If time was of the essence, he said, a different court order or administrative subpoena would allow for an emergency request for the records. Wyden noted that both Moalin and the subway plot co-conspirator were arrested “months or years after they were first identified” by mining the phone logs.

The bottom line, said Rep. Adam Schiff (D-Calif.), a House Intelligence Committee member, is that even if the program is “only occasionally successful, there’s still no justification that I can see for obtaining that amount of data in the first place.”

Taxes

I have a uncle who lives there.

No, I’m talking about taxes, money, dollars.

That’s where he lives.  Dollars, Taxes.

Corporate sell-outs exploit a secret new gimmick

By David Sirota, Salon

Wednesday, Jul 31, 2013 4:33 PM UTC

As The Hill reports, the U.S. Senate’s “top tax writers have promised their colleagues 50 years worth of secrecy in exchange for suggestions on what deductions and credits to preserve” in a tax “reform” bill that aims to overhaul the tax code from scratch. The system, reports the newspaper, allows only 10 congressional staff members to have “direct access to a senator’s written suggestions” and “each submission will be given its own ID number and be kept on password-protected servers, with printed versions kept in locked safes” in the National Archives until the end of 2064.



(C)onsider the career of one of the architects of this scheme, Max Baucus.

The retiring Montana senator is the senior Democrat on the tax-writing Senate Finance Committee. In that position, he hasn’t used his power to rid the tax code of corporate-written loopholes, subsidies and handouts – the public record shows that he has used his power to riddle the tax code with those expensive giveaways. In exchange for embedding those handouts in the tax code, Baucus has been rewarded handsomely with campaign cash to the point where he has been famously labeled “K Street’s Favorite Senator.” That label is particularly appropriate considering a recent dispatch from the New York Times showing that “no other lawmaker on Capitol Hill has such a sizable constellation of former aides working as tax lobbyists.”

In light of such a record, the notion that Baucus has built the anonymous submission system in order to help challenge K Street is, in a word, absurd. Having spent so much political capital enriching his corporate donors and lobbyists at the expense of taxpayers, he is retiring with one last gift to those benefactors – a secrecy system designed to let them rewrite the tax code from scratch in a way that most serves their interests.

On This Day In History August 9

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

Click on images to enlarge

August 9 is the 221st day of the year (222nd in leap years) in the Gregorian calendar. There are 144 days remaining until the end of the year.

On this day in 1974, one day after the resignation of President Richard M. Nixon, Gerald R. Ford is sworn in as president, making him the first man to assume the presidency upon his predecessor’s resignation. He was also the first non-elected vice president and non-elected president, which made his ascendance to the presidency all the more unique.

Gerald Rudolph Ford, Jr. (born Leslie Lynch King, Jr.; July 14, 1913 – December 26, 2006) was the 38th President of the United States, serving from 1974 to 1977, and the 40th Vice President of the United States serving from 1973 to 1974. As the first person appointed to the vice-presidency under the terms of the 25th Amendment, when he became President upon Richard Nixon’s  resignation on August 9, 1974, he also became the only President of the United States who was elected neither President nor Vice-President.

Before ascending to the vice-presidency, Ford served nearly 25 years as Representative from Michigan’s 5th congressional district, eight of them as the Republican Minority Leader.

As President, Ford signed the Helsinki Accords, marking a move toward detente in the Cold War. With the conquest of South Vietnam by North Vietnam nine months into his presidency, US involvement in Vietnam essentially ended. Domestically, Ford presided over what was then the worst economy since the Great Depression, with growing inflation and a recession during his tenure. One of his more controversial acts was to grant a presidential pardon to President Richard Nixon for his role in the Watergate scandal. During Ford’s incumbency, foreign policy was characterized in procedural terms by the increased role Congress began to play, and by the corresponding curb on the powers of the President. In 1976, Ford narrowly defeated Ronald Reagan for the Republican nomination, but ultimately lost the presidential election to Democrat Jimmy Carter.

Following his years as president, Ford remained active in the Republican Party. After experiencing health problems and being admitted to the hospital four times in 2006, Ford died in his home on December 26, 2006. He lived longer than any other U.S. president, dying at the age of 93 years and 165 days.

The Greatest Lies Ever Told

Someone suggested that latest lie told by President Barack Obama on the Jay Leno Show that other night stating, “There is no spying on Americans. We don’t have a domestic spying program,” was up there with the 10 greatest lies ever told. That fallacy of the president’s declaration was made very obvious in a New York Times article by Charlie Savage on the latest and greatest NSA domestic surveillance program. The NSA has been copying virtually all overseas messages that Americans send or receive, scanning them to see if they contain any references to people or subjects the agency thinks might have a link to terrorists.

Hints of the surveillance appeared in a set of rules, leaked by Mr. Snowden, for how the N.S.A. may carry out the 2008 FISA law. One paragraph mentions that the agency “seeks to acquire communications about the target that are not to or from the target.” The pages were posted online by the newspaper The Guardian on June 20, but the telltale paragraph, the only rule marked “Top Secret” amid 18 pages of restrictions, went largely overlooked amid other disclosures.

In an opinion by the New York Times Editorial Board, these messages could be very private and no connection to terrorists or terrorist activity:

That could very well include innocent communications between family members expressing fears of a terror attack. Or messages between an editor and a reporter who is covering international security issues. Or the privileged conversation between a lawyer and a client who is being investigated.

Data collection on this scale goes far beyond what Congress authorized, and it clearly shreds a common-sense understanding of the Fourth Amendment. It’s as if the government were telling its citizens not to even talk about security issues in private messages or else they will come to the attention of the nation’s spies.

At the Electronic Frontier Foundation, Mark Rumold explains what it means to be an NSA target:

When “Target” Means Searching a Specific Person’s Communications

First, at least this much is clear: a “target” under the FA (FISA Amendments Act ) must be (a) a non-US person and (b) not physically located within the United States. A “person,” for purposes of the FAA, includes individuals as well as “any group, entity, association, corporation, or foreign power.”  Under the FAA, the government can thus “target” a single individual (e.g., Vladimir Putin), a small group of people (e.g., Pussy Riot), or a formal corporation or entity (e.g., Gazprom).

So, when the NSA decides to “target” someone (or something), it turns its specific surveillance vacuum at them. [..]

When “Target” Means Searching Everyone’s Communications

Once a target is established, the NSA believes it can expand the sweep of its interception far more broadly than the communhttp://www.guardian.co.uk/world/interactive/2013/jun/20/exhibit-a-procedures-nsa-documentications of the particular, identified target. Notably, the NSA’s procedures state (emphasis added):

   [I]n those cases where NSA seeks to acquire communications about the target that are not to or from the target, NSA will either employ an Internet Protocol filter to ensure that the person from whom it seeks to obtain foreign intelligence information is located overseas, or it will target Internet links that terminate in a foreign country.

In plain English: the NSA believes it not only can (1) intercept the communications of the target, but also (2) intercept communications about a target, even if the target isn’t a party to the communication. The most likely way to assess if a communication is “about” a target is to conduct a content analysis of communications, probably based on specific search terms or selectors.

And that, folks, is what we call a content dragnet.

Importantly, under the NSA’s rules, when the agency intercepts communications about a target, the author or speaker of those communications does not, thereby, become a target: the target remains the original, non-US person. But, because the target remains a non-US person, the most robust protection for Americans’ communications under the FISA Amendments Act (and, indeed, the primary reassurance the government has given about the surveillance) flies out the window. If you communicate about a target of NSA surveillance, your citizenship is irrelevant: the only thing standing between you and NSA surveillance is your IP address or the fiber optic path through which your communications flow.

Jameel Jaffer, American Civil Liberties Union deputy legal director, made the following comments about the latest revelations:

“The program described by the New York Times involves a breathtaking invasion of millions of people’s privacy.  The NSA has cast a massive dragnet over Americans’ international communications, collecting and monitoring all of them, and retaining some untold number of them in government databases.  This is precisely the kind of generalized spying that the Fourth Amendment was intended to prohibit.

“The government’s scrutiny of virtually every international email sent by Americans will have extraordinary consequences for free expression. Americans will inevitably hesitate to discuss controversial topics, visit politically sensitive websites, or interact with foreigners with dissenting views. By injecting the NSA into virtually every cross-border interaction, the U.S. government will forever alter what has always been an open exchange of ideas.

“There is no spying on Americans. We don’t have a domestic spying program,” is right up there with “I am not a crook” and “I did not have sex with that woman.”

Tit For Tat Diplomacy

This week after much hinting, President Barack Obama cancelled his private meeting Russian President Vladimir Putin that was to take place before the G-20 meeting in St. Petersburg in early September. The primary reason for the snub (yes, despite what you are hearing in the American msm, in the international community this is a snub) is Russia’s decision to grant temporary asylum to the NSA whistleblower Edward Snowden.

In a statement, the White House said that it had concluded there was “not enough recent progress in our bilateral agenda” to hold a US-Russia summit. It cited a lack of progress on arms control, trade, missile defence and human rights, and added: “Russia’s disappointing decision to grant Edward Snowden temporary asylum was also a factor that we considered in assessing the current state of our bilateral relationship. Our co-operation on these issues remains a priority for the United States.” [..]

The decision to cancel the meeting was greeted with little surprise in Moscow, where analysts and lawmakers have been predicting such a step. Presidential aide Yuri Ushakov said the Kremlin was disappointed that Obama cancelled the meeting with Putin, state news agency RIA-Novosti reported. “It’s obvious that this decision is connected to the situation with the American intelligence services employee Snowden, which was not created by us,” he said.

Nonetheless, the invitation to Obama to visit Moscow remains open, and Russia is prepared to co-operate with the United States on pressing issues, Ushakov said.

Nationalist Duma deputy Vladimir Zhirinovsky, perhaps the most rabid of the many critics of the United States in parliament, said the decision shows “disrespect” towards Russia.

“If you postpone or completely cancel meetings between heads of state under the pretext of the refusal to hand over one person, then relations between countries will quickly reach zero,” Zhirinovsky said.

Pres. Obama has no room to criticize Russia for giving Snowden asylum considering the fact that the US has given shelter to internationally wanted criminals and refused to investigate or prosecute Americans accused of war crimes

In his opinion article, Glenn Greenwald high lighted the most glaring cases:

New York Times, February 28, 2007:

U.S. to refuse Italian request for extradition of CIA agents

BRUSSELS – A senior U.S. official said Wednesday that the United States would refuse any Italian extradition request for CIA agents indicted in the alleged abduction of an Egyptian cleric in Milan, a case investigated by the European Parliament.

“We’ve not got an extradition request from Italy,” John Bellinger, a legal adviser to Secretary of State Condoleezza Rice, told reporters after meeting in Brussels with legal advisers to EU governments.

“If we got an extradition request from Italy, we would not extradite U.S. officials to Italy.”

Washington Post, July 19, 2013:

Panama releases former CIA operative wanted by Italy

A former CIA operative detained in Panama this week at the request of Italian authorities over his conviction in the 2003 kidnapping of a Muslim cleric in Milan was released Friday and had boarded a flight to the United States, U.S. officials said.

Robert Seldon Lady’s release from Panama appeared to avert the possibility that he would be extradited to Italy, where he faces a sentence of up to nine years in prison for his role in the CIA capture of a terrorism suspect who was secretly snatched off a street in Milan and transported to Egypt.

Lady, who left Panama on Friday morning, was “either en route or back in the United States,” Marie Harf, State Department deputy spokeswoman, told reporters at a midday briefing.

It was not immediately clear what steps the United States had taken to secure Lady’s release.

The Guardian, September 9, 2012:

America’s refusal to extradite Bolivia’s ex-president to face genocide charges

Obama justice officials have all but granted asylum to Sánchez de Lozada – a puppet who payrolled key Democratic advisers

[US refuses Bolivia’s request to extradite its former CIA-supported president, Gonzalo Sánchez de Lozada, to stand trial on charges of genocide and other war crimes after de Lozada hires Democratic lobbyists to represent him]

El Paso Times, December 30, 2010:

Luis Posada Carriles won’t be extradited to Venezuela

The US constantly refuses requests to extradite – even where (unlike Russia) they have an extradition treaty with the requesting country and even where (unlike Snowden) the request involves actual, serious crimes, such as genocide, kidnapping, and terrorism. Maybe those facts should be part of whatever media commentary there is on Putin’s refusal to extradite Snowden and Obama’s rather extreme reaction to it. [..]

At his blog Informed Consent, Juan Cole notes that Russia has denied visas to US officials who have been accused of war crimes:

A less remarked-on round in this game of tit for tat (which so far doesn’t rise to the level of being very serious) is the government’s decision last April to deny visas to American officials and former officials who had something to do with torture at Guantanamo, where Russian citizens have been held.

The Moscow Times reports

   “The list of banned officials released by the Foreign Ministry in April included former U.S. Vice President Dick Cheney’s chief of staff David Addington, former U.S. Justice Department adviser John Yoo and various other Justice Department officials alleged to have violated Russian citizens’ human rights. United States Admiral Jeffrey Harbeson, the former head of the Guantanamo prison, was denied a Russian visa in January, Komsomolskaya Pravda reported.”

Professor of international law at Princeton University, Richard Falk explained in an article in Al Jazeera, that the granting of asylum to Snowden wasn’t just within Russia’s rights, but was legally compelled.

The most influential media in the United States has lived up to its pro-government bias in the Snowden Affair in three major ways: firstly, by consistently referring to Snowden by the demeaning designation of ‘leaker’ rather than as ‘whistleblower’ or ‘surveillance dissident,’ both more respectful and accurate.

Secondly, they are completely ignoring the degree to which Russia’s grant of temporary refugee status to Snowden for one year was in full accord with the normal level of protection to be given to anyone accused of nonviolent political crimes in a foreign country, and pursued diplomatically and legally by the government that is seeking to indict and prosecute. In effect, for Russia to have turned Snowden over to the United States under these conditions would have been morally and politically scandalous considering the nature of his alleged crimes.

Thirdly, the media’s refusal to point out that espionage, the main accusation against Snowden, is the quintessential ‘political offense’ in international law, and as such is routinely excluded from any list of extraditable offenses. That is, even if there had been an extradition treaty between the United States and Russia, it should have been made clear that there was no legal duty on Russia’s part to turn Snowden over to American authorities for criminal prosecution, and a moral and political duty not to do so, especially in the circumstances surrounding the controversy over Snowden.

And as Mark Weisbot noted

Meanwhile, Snowden and Glenn Greenwald and Wikileaks are winning. At the outset Snowden said his biggest fear was that people would see “the lengths that the government is going to grant themselves powers unilaterally to create greater control over American society and global society and that ‘nothing will change'”. But his disclosures have already created a new debate, and political change will follow. [..]

The spectacle of US attorney general Eric Holder trying to offer Russia assurances that his government would not torture or execute Snowden speaks volumes about how far the US government’s reputation on human rights – even within the United States – has plummeted over the past decade.

Legally, morally and ethically, Pres. Obama has no room to criticize Russia on it human rights violations.  

Back in (William K.) Black

The numbering kind of falls apart at 6 and 7.  You have my best guess.

Or you could ignore his system altogether and come up with a dozen or two “epic fails.”

Is B of A the Most Embarrassing Department of Justice Suit Ever?

By William K. Black, New Economic Perspectives

Posted on August 8, 2013

The Department of Justice’s (DOJ) latest civil suit against Bank of America (B of A) is an embarrassment of tragic proportions on multiple dimensions.  In this version I explore “only” seven of its epic fails.

The two most obvious fails (except to the most of the media, which failed to mention either) are that the DOJ has once again refused to prosecute either the elite bankers or bank that committed what the DOJ describes as massive frauds and that the DOJ has refused to bring even a civil suit against the senior officers of the banks despite filing a complaint that alleges facts showing that those officers committed multiple felonies that made them wealthy by causing massive harm to others.  Those two fails should have been the lead in every article about the civil suit.

The next most obvious DOJ fail, also ignored, was that the DOJ compounded the first two fails by congratulating itself for holding the frauds “accountable” for their crimes.  One can only imagine the hilarity with which B of A senior officers in their mansions they bought with the proceeds of their frauds must have greeted the DOJ’s latest pratfall.  If DOJ’s leadership cannot find the intestinal fortitude to renounce their infamous “too big to prosecute” doctrine they can at least have the decency to stop praising themselves for violating their oath of office and their duty to the Nation.

The fourth fail adds a new means by which DOJ has caused long-term harm to the Nation.



The complaint alleges that the Federal Home Loan Bank of San Francisco (FHLBSF) and Wachovia were prudent purchasers of B of A’s mortgage backed securities (MBS) – unlike the normal, imprudent MBS purchasers whose numbers are so large as to be “countless.”  Any competent defense counsel for the banks and bankers, credit rating agencies, etc. being sued for fraud will be eagerly quoting DOJ and demanding that the courts dismiss the lawsuits of investors that purchased MBS sold with the aid of fraudulent “representations (reps) and warranties” on the grounds that the investors were imprudent because they were “chas[ing] … higher rates of return.”



Fifth, it is hilarious for DOJ to claim that (in 2008) Wachovia, one of the Nation’s most notorious originators of fraudulent loans; was a victim of unique purity when it bought MBS from B of A.  Of course, it was equally hilarious when B of A responded to the complaint by claiming that it could not have engaged in fraud because Wachovia and the FHLBSF were financially “sophisticated.”  Criminologists have long observed how vulnerable the allegedly sophisticated are to being defrauded.



(Sixth) Why does DOJ Pretend that B of A’s Fraud Only Occurred in 2008 in One Deal?

The Complaint demonstrates that B of A engaged in widespread fraud, yet it sues only against one of the B of A’s officers’ relatively smaller frauds (though even it, at $885 million, is huge).



Again, it becomes clear that DOJ does not understand the most basic facts about the actual B of A fraud schemes and is unwilling to bring even a civil action large enough to recover a substantial amount of the losses caused by B of A’s vastly larger fraudulent sales of fraudulent mortgages.  I have explained that no honest lender would take the actions B of A’s officers took to ensure that its underwriting was pathetic.  In the home mortgage lending context this will produce widespread mortgage origination fraud.  Fraudulent loans can only be sold to the secondary market through further fraud.



DOJ is focused on a false assumption that the secondary market is the key rather than the ability to borrow and grow by reporting record (albeit fictional) profits in the near term by following the fraud recipe.  DOJ also fails to ask the obvious question – if the secondary market caused such a drastic and perverse change in home lenders’ economic incentives why didn’t the secondary market purchasers realize that fact and take steps to protect themselves from the lenders’ perverse incentives?  Nobody had a gun to Wachovia and the FHLBSF’s heads and required them to buy B of A’s fraudulent MBS.



(Seventh) An excerpt from paragraph 50 of the complaint illustrates DOJ’s factual and analytical incoherence and indicates why its incoherence has been fatal to any prosecution of the credit rating agencies for their role in aiding and abetting fraud in the secondary market.



These statements are, at best, disingenuous.  The credit rating agencies could have required that they be provided with the loan types on all the underlying mortgage files.  The investors could have refused to purchase the MBS unless B of A gave them the right to review a sample of the loan files.  The credit rating agencies and the purchaser deliberately refused to review even a sample of the files of the loans sold in the secondary market.  Had they reviewed a sample of the B of A’s loan files (and been honest) they would have never have purchased the loans because the quality of B of A’s portfolio was awful – and rapidly falling.

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Follow us on Twitter @StarsHollowGzt

John Kiriakou: Obama’s Abuse of the Espionage Act is Modern-Day McCarthyism

Shame on this president for persecuting whistleblowers with a legal relic, while administration officials leak with impunity

The conviction of Bradley Manning under the 1917 Espionage Act, and the US Justice Department’s decision to file espionage charges against NSA whistleblower Edward Snowden under the same act, are yet further examples of the Obama administration’s policy of using an iron fist against human rights and civil liberties activists.

President Obama has been unprecedented in his use of the Espionage Act to prosecute those whose whistleblowing he wants to curtail. The purpose of an Espionage Act prosecution, however, is not to punish a person for spying for the enemy, selling secrets for personal gain, or trying to undermine our way of life. It is to ruin the whistleblower personally, professionally and financially. It is meant to send a message to anybody else considering speaking truth to power: challenge us and we will destroy you.

Mark Weisbot: Mass Media Helps Keep Americans in the Dark About U.S. Foreign Policy

The United States still has military spending that is higher in real, inflation-adjusted terms than it was during the peak of the Reagan Cold War build-up, the Vietnam War, and the Korean War. We seem to be in a state of permanent warfare, and — we have recently learned — massive government spying and surveillance of our own citizens. This is despite an ever-receding threat to the actual physical security of Americans. Only 19 people have been killed acts of terrorism in the United States since September 11, 2001; and none or almost none of these were connected to foreign terrorists. And there are no “enemy states” that pose a significant military threat to the United States — if any governments can be called “enemy states” at all.

One of the reasons for this disconnect is that most of the mass media provide a grossly distorted view of U.S. foreign policy. It presents an American foreign policy that is far more benign and justifiable than the reality of empire that most of the world knows. In a well-researched and thoroughly documented article published by the North American Congress on Latin America (NACLA), Keane Bhatt provides an excellent case study of how this happens.

Richard (RJ) Eskow: 7 Things About Prosecuting Wall Street You Wanted to Know (But Were Too Depressed to Ask)

President Obama’s Justice Department, under the direction of Attorney General Eric Holder, hasn’t indicted a single bank executive for the massive Wall Street crime wave that devastated the economy. The regulatory reform which followed the 2008 crisis wasn’t nearly enough, and yet Republicans are trying to weaken even that.

And just this week there were several news stories about bank crime. What do they mean? Why haven’t any bankers gone to jail? What’s going on in this country?

Here are seven things about Wall Street crime and Washington “justice” you might have wanted to know, but were probably too depressed to ask. It’s true that there’s a shortage of justice where bankers are concerned. But don’t get depressed. Get serious – about demanding change.

Juan Cole: How the GOP Libya Witch Hunt Made Us Close Our Mideast Embassies and Crippled U.S. Diplomacy

About those US embassy closures in the Middle East:  they make the US look like a wimp. [..]

As with George Mitchell and Northern Ireland, the most effective uses of American power have been diplomatic.  But hawks in Washington always want to drag us into foreign wars, in part to benefit their buddies in the arms industry.  The current GOP is divided on the issue of US power abroad, with Libertarians like Rand Paul viewing foreign wars as a waste of money and a fruitless enterprise, but hawks like John McCain and Lindsey Graham failing to discover a potential war that they don’t just love to death.

But the GOP is inadvertently pushing the US into a posture of dangerous diplomatic weakness.  This weakness is clear in the unprecedented closing of 21 US embassies in the Middle East this weekend because of a vague terrorist threat apparently emanating from “al-Qaeda in the Arabian Peninsula,” based in Yemen.

Jared Berstein: [Threatening to ‘Reform’ the Earned Income Tax Credit Threatening to ‘Reform’ the Earned Income Tax Credit]

Devoted readers know that I’m careful not to shoot everything that moves, but the more I hang around the DC tax debate, the more I’m exposed to deeply misguided thinking that seems largely motivated by the conviction that poor people — in this case, the working poor — have too much money and the wealthy have too little.

That’s the lesson from a report by the Tax Foundation on the “benefits” of getting rid of the Earned Income Tax Credit — a wage subsidy for low-income workers — and giving everybody else a tax break.

Jim Hightower: Forget Student Loans — Make Higher Ed Free

Well, finally! Hard-right congressional leaders and the Obama White House have agreed that interest rates on student loans should not double to nearly 7 percent, as they let happen early in July. Instead, college students will be billed at a rate that will steadily rise higher than 8 percent.

This is progress?

Temporarily, yes, because the new law drops this year’s rate to 3.8 percent. But, for the longer run, obviously not. Even capping the interest rate at 8.25 percent, as the White House demanded, is too high, for it still saddles students with a crushing debt of some $20,000 to $40,000 for a four-year degree, just as they’re getting started on their economic path.

Do you want Fries with that (revised and extended)?

Fast-Food Fight

By The New York Times EDITORIAL BOARD

Published: August 7, 2013

As measured by the federal minimum wage, currently $7.25 an hour, low-paid work in America is lower paid today than at any time in modern memory. If the minimum wage had kept pace with inflation or average wages over the past nearly 50 years, it would be about $10 an hour; if it had kept pace with the growth in average labor productivity, it would be about $17 an hour.

In contrast, the median hourly pay of fast-food workers – most of whom are in their 20s or older and many of whom are parents – is less than $9 for front-line workers and just above $9 when shift supervisors are included. Not surprising, the strikers demanded better pay – $15 an hour – and the right to organize without retaliation.

Also not surprising, they have been motivated to act by the inaction of the nation’s leaders. Republicans are against a higher minimum wage, and Democrats are too timid. Legislation proposed by Congressional Democrats would raise the hourly minimum to $10.10 over nearly two-and-a-half years from the date of enactment. President Obama has proposed a similarly gradual increase to $9 an hour. Congress and the White House also squandered a chance to try to improve workers’ earnings prospects when they let right-to-organize legislation die years ago.

Stephen Colbert and Mary Kay Henry (SEUI) below (autoplay).

On This Day In History August 8

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

Click on images to enlarge

August 8 is the 220th day of the year (221st in leap years) in the Gregorian calendar. There are 145 days remaining until the end of the year.

On this day in 1974, Richard M. Nixon becomes the first President to resign.

In an evening televised address, President Richard M. Nixon announces his intention to become the first president in American history to resign. With impeachment proceedings underway against him for his involvement in the Watergate affair, Nixon was finally bowing to pressure from the public and Congress to leave the White House. “By taking this action,” he said in a solemn address from the Oval Office, “I hope that I will have hastened the start of the process of healing which is so desperately needed in America.”

Just before noon the next day, Nixon officially ended his term as the 37th president of the United States. Before departing with his family in a helicopter from the White House lawn, he smiled farewell and enigmatically raised his arms in a victory or peace salute. The helicopter door was then closed, and the Nixon family began their journey home to San Clemente, California. Minutes later, Vice President Gerald R. Ford was sworn in as the 38th president of the United States in the East Room of the White House. After taking the oath of office, President Ford spoke to the nation in a television address, declaring, “My fellow Americans, our long national nightmare is over.” He later pardoned Nixon for any crimes he may have committed while in office, explaining that he wanted to end the national divisions created by the Watergate scandal.

Parallel Construction

Exclusive: U.S. directs agents to cover up program used to investigate Americans

By John Shiffman and Kristina Cooke, Reuters

Mon Aug 5, 2013 3:25pm EDT

The undated documents show that federal agents are trained to “recreate” the investigative trail to effectively cover up where the information originated, a practice that some experts say violates a defendant’s Constitutional right to a fair trial. If defendants don’t know how an investigation began, they cannot know to ask to review potential sources of exculpatory evidence – information that could reveal entrapment, mistakes or biased witnesses.

“I have never heard of anything like this at all,” said Nancy Gertner, a Harvard Law School professor who served as a federal judge from 1994 to 2011. Gertner and other legal experts said the program sounds more troubling than recent disclosures that the National Security Agency has been collecting domestic phone records. The NSA effort is geared toward stopping terrorists; the DEA program targets common criminals, primarily drug dealers.

“It is one thing to create special rules for national security,” Gertner said. “Ordinary crime is entirely different. It sounds like they are phonying up investigations.”



“Remember that the utilization of SOD cannot be revealed or discussed in any investigative function,” a document presented to agents reads. The document specifically directs agents to omit the SOD’s involvement from investigative reports, affidavits, discussions with prosecutors and courtroom testimony. Agents are instructed to then use “normal investigative techniques to recreate the information provided by SOD.”



A former federal agent in the northeastern United States who received such tips from SOD described the process. “You’d be told only, ‘Be at a certain truck stop at a certain time and look for a certain vehicle.’ And so we’d alert the state police to find an excuse to stop that vehicle, and then have a drug dog search it,” the agent said.

After an arrest was made, agents then pretended that their investigation began with the traffic stop, not with the SOD tip, the former agent said. The training document reviewed by Reuters refers to this process as “parallel construction.”

The two senior DEA officials, who spoke on behalf of the agency but only on condition of anonymity, said the process is kept secret to protect sources and investigative methods. “Parallel construction is a law enforcement technique we use every day,” one official said. “It’s decades old, a bedrock concept.”



One current federal prosecutor learned how agents were using SOD tips after a drug agent misled him, the prosecutor told Reuters. In a Florida drug case he was handling, the prosecutor said, a DEA agent told him the investigation of a U.S. citizen began with a tip from an informant. When the prosecutor pressed for more information, he said, a DEA supervisor intervened and revealed that the tip had actually come through the SOD and from an NSA intercept.

“I was pissed,” the prosecutor said. “Lying about where the information came from is a bad start if you’re trying to comply with the law because it can lead to all kinds of problems with discovery and candor to the court.” The prosecutor never filed charges in the case because he lost confidence in the investigation, he said.



As a practical matter, law enforcement agents said they usually don’t worry that SOD’s involvement will be exposed in court. That’s because most drug-trafficking defendants plead guilty before trial and therefore never request to see the evidence against them. If cases did go to trial, current and former agents said, charges were sometimes dropped to avoid the risk of exposing SOD involvement.

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