Court Affirms: Bush Can Order Indefinite Military Detentions of Civilians in the United States
July 16th, 2008Via: New York Times:
President Bush has the legal power to order the indefinite military detentions of civilians captured in the United States, the federal appeals court in Richmond, Va., ruled on Tuesday in a fractured 5-to-4 decision.
But a second, overlapping 5-to-4 majority of the court, the United States Court of Appeals for the Fourth Circuit, ruled that Ali al-Marri, a citizen of Qatar now in military custody in Charleston, S.C., must be given an additional opportunity to challenge his detention in federal court there. An earlier court proceeding, in which the government had presented only a sworn statement from a defense intelligence official, was inadequate, the second majority ruled.
The decision was a victory for the Bush administration, which had maintained that a 2001 Congressional authorization to use military force after the Sept. 11 attacks granted the president the power to detain people living in the United States.
The court effectively reversed a divided three-judge panel of its own members, which ruled last year that the government lacked the power to detain civilians legally in the United States as enemy combatants. That panel ordered the government either to charge Mr. Marri or to release him. The case is likely to reach the Supreme Court.
Research Credit: ltcolonelnemo
ALL ITALIANS TO BE FINGERPRINTED
July 16th, 2008Via: Reuters:
Italy may demand all its citizens be fingerprinted, a move aimed at defusing widespread criticism of government plans to force Roma people and their children to provide fingerprints as a way of tackling criminality.
That policy has been condemned by the European Parliament, by Romania, where many Roma come from, and by religious groups who have compared it to the tagging of Jews by Nazis and fascists in the 1930s.
A parliamentary committee agreed on Wednesday that from 2010 all identity cards, which Italians already have to carry, should include the fingerprints of the bearer. The measure still has to pass through parliament.
“It will defuse the Roma question, (fingerprints) will be taken from everyone,” opposition deputy Antonio Misani was quoted as saying by the Corriere della Sera newspaper’s website.
Conservative Prime Minister Silvio Berlusconi won a landslide at an April election on a promise to get tough on crime which many Italians blame on immigrants.
Interior Minister Roberto Maroni, a member of the staunchly anti-immigrant Northern League party, is pushing the measure to fingerprint people living in Roma camps. He has said only people who cannot provide valid identification will be fingerprinted.
Berlusconi has defended the policy, saying it would help the state clean up Roma camps, which are often squalid shanty towns on the outskirts of major cities. There are about 140,000 Roma in Italy, where they are known as “nomads”.
“The Italian government wants to guarantee Roma children can go to school and wants to integrate these European citizens,” Berlusconi said on Tuesday.
Commenting on the plan to fingerprint Roma, Italy’s privacy watchdog said it was “absolutely necessary to avoid recourse to techniques based on discriminatory criteria, especially if ethnic or religious” but said fingerprinting the whole population would not be discriminatory.
Terrorist Watch List Hits One Million Names
July 16th, 2008Via: ACLU:
The nation’s terrorist watch list has hit one million names, according to a tally maintained by the American Civil Liberties Union based upon the government’s own reported numbers for the size of the list.
“Members of Congress, nuns, war heroes and other ‘suspicious characters,’ with names like Robert Johnson and Gary Smith, have become trapped in the Kafkaesque clutches of this list, with little hope of escape,” said Caroline Fredrickson, director of the ACLU Washington Legislative Office. “Congress needs to fix it, the Terrorist Screening Center needs to fix it, or the next president needs to fix it, but it has to be done soon.”
Fredrickson and Barry Steinhardt, director of the ACLU’s Technology and Liberty Program, spoke today along with two victims of the watch list: Jim Robinson, former assistant attorney general for the Criminal Division who flies frequently and is often delayed for hours despite possessing a governmental security clearance and Akif Rahman, an American citizen who has been detained and interrogated extensively at the U.S.-Canada border when traveling for business.
“America’s new million record watch list is a perfect symbol for what’s wrong with this administration’s approach to security: it’s unfair, out-of-control, a waste of resources, treats the rights of the innocent as an afterthought, and is a very real impediment in the lives of millions of travelers in this country,” said Barry Steinhardt, director of the ACLU Technology and Liberty Program. “It must be fixed without delay.”
“Putting a million names on a watch list is a guarantee that the list will do more harm than good by interfering with the travel of innocent people and wasting huge amounts of our limited security resources on bureaucratic wheel-spinning,” said Steinhardt. “I doubt this thing would even be effective at catching a real terrorist.”
Research Credit: Pookie
Contaminated U.S. Site Faces ‘Catastrophic’ Nuclear Leak
July 16th, 2008Via: New Scientist:
ONE of “the most contaminated places on Earth” will only get dirtier if the US government doesn’t get its act together – clean-up plans are already 19 years behind schedule and not due for completion until 2050.
More than 210 million litres of radioactive and chemical waste are stored in 177 underground tanks at Hanford in Washington State. Most are over 50 years old. Already 67 of the tanks have failed, leaking almost 4 million litres of waste into the ground.
There are now “serious questions about the tanks’ long-term viability,” says a Government Accountability Office report, which strongly criticises the US Department of Energy for delaying an $8 billion programme to empty the tanks and treat the waste. The DoE says the clean-up is “technically challenging” and argues that it is making progress in such a way as to protect human health and the environment.
The DoE’s plan, however, is “faith-based”, says Robert Alvarez, an authority on Hanford at the Institute for Policy Studies in Washington DC. “The risk of catastrophic tank failure will sharply increase as each year goes by,” he says, “and one of the nation’s largest rivers, the Columbia, will be in jeopardy.”
Research Credit: DrFrost501
U.S. Faces Global Funding Crisis, Warns Merrill Lynch
July 16th, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
In a recent comment, I wrote:
It’s pretty clear that the Fed is more interested in selling out the dollar over time than letting the whole thing come crashing down all at once. They could have just let Freddie and Fannie fail, which would have resulted in soldiers on the streets, martial law, overt collapse, etc. But they didn’t. And, for whatever reason, the Asians and a few others continue to buy U.S. debt.
When the U.S. paper auctions fail, that will indicate that we’re into a very different—much more dire—phase.
Well… What’s the smack worth?
Via: Telegraph:
Merrill Lynch has warned that the United States could face a foreign “financing crisis” within months as the full consequences of the Fannie Mae and Freddie Mac mortgage debacle spread through the world.
The country depends on Asian, Russian and Middle Eastern investors to fund much of its $700bn (£350bn) current account deficit, leaving it far more vulnerable to a collapse of confidence than Japan in the early 1990s after the Nikkei bubble burst. Britain and other Anglo-Saxon deficit states could face a similar retreat by foreign investors.
“Japan was able to cut its interest rates to zero,” said Alex Patelis, Merrill’s head of international economics.
“It would be very difficult for the US to do this. Foreigners will not be willing to supply the capital. Nobody knows where the limit lies.”
Brian Bethune, chief financial economist at Global Insight, said the US Treasury had two or three days to put real money behind its rescue plan for Fannie and Freddie or face a dangerous crisis that could spiral out of control.
“This is not the time for policy-makers to underestimate, once again, the systemic risks to the financial system and the huge damage this would impose on the economy. Bold, aggressive action is needed, and needed now,” he said.
Mr Bethune said the Treasury would have to inject up $20bn in fresh capital. This in turn might draw in a further $20bn in private money. Funds on this scale would be enough to see the two agencies through any scenario short of a meltdown in the US prime property market.
Cops to IndyMac Customers: Remain Calm or Face Arrest
July 16th, 2008I would not assume that the banking situation will continue to unwind in an orderly manner.
If the herd begins to smell trouble, it will move with astonishing speed and ferocity. Don’t get caught trying to move your money to the exit as millions of zombies attempt to do the same thing.
—EMERGENCY: U.S. GOVERNMENT TO TAKE “UNLIMITED STAKES” IN FANNIE AND FREDDIE
Many eggs. Many baskets. Many countries. Many currencies. Many sectors. Many types of assets.
Via: Daily News:
Police ordered angry customers lined up outside an IndyMac Bank branch to remain calm or face arrest Tuesday as they tried to pull their money on the second day of the failed institution’s federal takeover.
At least three police squad cars showed up early Tuesday as tensions rose outside the San Fernando Valley branch of Pasadena-based IndyMac.
Federal regulators seized Pasadena-based IndyMac on Friday and reopened the bank Monday under the control of the Federal Deposit Insurance Corporation. Deposits to $100,000 are fully insured by the FDIC.
Worried customers with deposits in excess of insured limits flooded IndyMac Bank branches on Monday, demanding to withdraw as much money as they could or get answers about the fate of their funds.
When it was clear some wouldn’t get in before closing, FDIC employees apparently took down names and told them to return Tuesday.
Other customers began lining up at 1:30 a.m. Tuesday, and by dawn, tensions escalated because people on the list were getting priority.
By 8 a.m., about 50 people on the list waited in one line and many more waited in another.
Five people were allowed in at a time.
Customers became infuriated, and police told them they could be arrested if they didn’t remain calm.
Police stood by at some other branches around Southern California but there were no other reports of problems.
MASSIVE INTERVENTION
July 15th, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
The Plunge Protection Team (Working Group on Financial Markets) is out in force right now. Yep, that was getting a bit hairy and the PPT stepped in. Everything whipsawed at once. We’re seeing an honest to g0d, by-the-book, fake-out, bullshit crank, whipsaw of a short squeeze on equities and the dollar is wheasing its way back up a bit, too. Oil gapped down $10, cleanly decapitating new longs. Look for a bunch of glop, slop and chop for the rest of the day.
I don’t see any stories about the PPT yet. Maybe something will show up.
Wholesale Prices Soar in June; Sales Are Sluggish
July 15th, 2008But don’t bother looking for that term in the AP piece below.
Via: AP:
The economy showed the depth of its twin problems on Tuesday, slow growth and rising inflation, as the nation wrestled with a teetering financial system, a slumping dollar and rising prices for food and fuel.
The Labor Department reported that soaring costs for gasoline and food pushed inflation at the wholesale level up by a bigger-than-expected 1.8 percent in June, leaving inflation rising over the past year at the fastest pace in more than a quarter-century.
Over the past 12 months, wholesale prices are up 9.2 percent, the largest year-over-year surge since June 1981, another period when soaring energy costs were giving the country inflation pains.
Worried About Foreclosure? Hope That Your Bank Implodes
July 15th, 2008Via: Wall Street Journal:
IndyMac Bancorp Inc., the failed thrift, reopened its doors under federal control Monday and promptly moved to toss ailing homeowners a lifeline by halting all foreclosures on the mortgages it owns.
Federal Deposit Insurance Corp. Chairman Sheila Bair, who has been one of the most outspoken officials calling for banks to ease up on struggling homeowners, said that the agency is “really focused” on keeping borrowers in their homes for both their sakes and to maximize IndyMac’s value for taxpayers. “We will very aggressively pursue loan-modification strategies for unaffordable loans to make them affordable on a long-term, sustainable basis,” Ms. Bair said in an interview Monday.
The FDIC’s move came as hundreds of depositors lined up to withdraw funds at the branches of the thrift, now renamed IndyMac Federal Bank. At the thrift’s Santa Monica, Calif., branch, a line extended down the street and around the corner. Some people waited for hours to get their money at IndyMac’s Pasadena, Calif., headquarters, but the crowd remained orderly.
The FDIC typically insures as much as $100,000 per depositor, but nearly $1 billion of IndyMac’s roughly $19 billion in deposits was uninsured, affecting about 10,000 people, according to the FDIC. Officials have said they would be able to make 50% of customers’ uninsured funds available.
FDIC Can Cover About 1% of “Potential Obligations”
July 15th, 2008This article is a few months old, so it doesn’t take the IndyMac implosion into account.
Via: Forbes:
In the case of bank collapse, the FDIC has to step in to insure the value of deposits. Normally the FDIC attempts to maintain a fund at 1.25% of the value of its potential obligations. In recent months, however, this fund has slid to 1.19%, driven primarily by a rise in deposits, said Sheila Bair, chair of the FDIC. If this figure slides further to 1.15% it forces the FDIC to make moves to shore up the fund.
Bair said the FDIC is monitoring 90 institutions with assets of $26 billion that it has identified as troubled. The entire size of the FDIC reserve fund is $52 billion. As a precaution, the FDIC is running bank failure readiness exercises, she said.


