Mike McConnell and the American Corporate State

March 30th, 2010

I’ve included just a few choice excerpts from this great article. If you only click through on one story today, make this the one.

Via: Salon:

In a political culture drowning in hidden conflicts of interests, exploitation of political office for profit, and a rapidly eroding wall separating the public and private spheres, Michael McConnell stands out as the perfect embodiment of all those afflictions. Few people have blurred the line between public office and private profit more egregiously and shamelessly than he. McConnell’s behavior is the classic never-ending “revolving door” syndrome: public officials serve private interests while in office and are then lavishly rewarded by those same interests once they leave. He went from being head of the National Security Agency under Bush 41 and Clinton directly to Booz Allen, one of the nation’s largest private intelligence contractors, then became Bush’s Director of National Intelligence (DNI), then went back to Booz Allen, where he is now Executive Vice President.

But that’s the least of what makes McConnell such a perfect symbol for the legalized corruption that dominates Washington. Tellingly, his overarching project while at Booz Allen and in public office was exactly the same: the outsourcing of America’s intelligence and surveillance functions (including domestic surveillance) to private corporations, where those activities are even more shielded than normal from all accountability and oversight and where they generate massive profit at the public expense. Prior to becoming Bush’s DNI, McConnell, while at Booz Allen, was chairman of the Intelligence and National Security Alliance, the primary business association of NSA and CIA contractors devoted to expanding the privatization of government intelligence functions.

Then, as Bush’s DNI, McConnell dramatically expanded the extent to which intelligence functions were outsourced to the same private industry that he long represented. Worse, he became the leading spokesman for demanding full immunity for lawbreaking telecoms for their participation in Bush’s illegal NSA programs — in other words, he exploited “national security” claims and his position as DNI to win the dismissal of lawsuits against the very lawbreaking industry he represented as INSA Chairman, including, almost certainly, Booz Allen itself. Having exploited his position as DNI to lavishly reward and protect the private intelligence industry, he then returns to its loving arms to receive from them lavish personal rewards of his own.

It’s vital to understand how this really works: it isn’t that people like Mike McConnell move from public office to the private sector and back again. That implies more separation than really exists. At this point, it’s more accurate to view the U.S. Government and these huge industry interests as one gigantic, amalgamated, inseparable entity — with a public division and a private one. When someone like McConnell goes from a top private sector position to a top government post in the same field, it’s more like an intra-corporate re-assignment than it is changing employers. When McConnell serves as DNI, he’s simply in one division of this entity and when he’s at Booz Allen, he’s in another, but it’s all serving the same entity (it’s exactly how insurance giant Wellpoint dispatched one of its Vice Presidents to Max Baucus’ office so that she could write the health care plan that the Congress eventually enacted).

In every way that matters, the separation between government and corporations is nonexistent, especially (though not only) when it comes to the National Security and Surveillance State. Indeed, so extreme is this overlap that even McConnell, when he was nominated to be Bush’s DNI, told The New York Times that his ten years of working “outside the government,” for Booz Allen, would not impede his ability to run the nation’s intelligence functions. That’s because his Booz Allen work was indistinguishable from working for the Government, and therefore — as he put it — being at Booz Allen “has allowed me to stay focused on national security and intelligence communities as a strategist and as a consultant. Therefore, in many respects, I never left.”

…

Aside from the general dangers of vesting government power in private corporations — this type of corporatism (control of government by corporations) was the hallmark of many of the worst tyrannies of the last century — all of this is big business beyond what can be described. The attacks of 9/11 exploded the already-huge and secret intelligence budget. Shorrock estimates that “about 50 percent of this spending goes directly to private companies” and “spending on intelligence since 2002 is much higher than the total of $33 billion the Bush administration paid to Bechtel, Halliburton and other large corporations for reconstruction projects in Iraq.”

…

Specifically, McConnell advocates a so-called “reeingeer[ing] of the Internet” to allow the Government and private corporations far greater capability to track what is being done over the Internet and who is doing it:

The United States is fighting a cyber-war today, and we are losing. It’s that simple. . . . If an enemy disrupted our financial and accounting transactions, our equities and bond markets or our retail commerce — or created confusion about the legitimacy of those transactions — chaos would result. Our power grids, air and ground transportation, telecommunications, and water-filtration systems are in jeopardy as well.

Scary! And what do we need to submit to in order to avoid these calamaties? This:

The United States must also translate our intent into capabilities. We need to develop an early-warning system to monitor cyberspace, identify intrusions and locate the source of attacks with a trail of evidence that can support diplomatic, military and legal options — and we must be able to do this in milliseconds. More specifically, we need to reengineer the Internet to make attribution, geolocation, intelligence analysis and impact assessment — who did it, from where, why and what was the result — more manageable.


Judge Invalidates Human Gene Patent

March 30th, 2010

This is such good news, I almost fell out of my chair.

Via: New York Times:

A federal judge on Monday struck down patents on two genes linked to breast and ovarian cancer. The decision, if upheld, could throw into doubt the patents covering thousands of human genes and reshape the law of intellectual property.

United States District Court Judge Robert W. Sweet issued the 152-page decision, which invalidated seven patents related to the genes BRCA1 and BRCA2, whose mutations have been associated with cancer.

The American Civil Liberties Union and the Public Patent Foundation at the Benjamin N. Cardozo School of Law in New York joined with individual patients and medical organizations to challenge the patents last May: they argued that genes, products of nature, fall outside of the realm of things that can be patented. The patents, they argued, stifle research and innovation and limit testing options.

Myriad Genetics, the company that holds the patents with the University of Utah Research Foundation, asked the court to dismiss the case, claiming that the work of isolating the DNA from the body transforms it and makes it patentable. Such patents, it said, have been granted for decades; the Supreme Court upheld patents on living organisms in 1980. In fact, many in the patent field had predicted the courts would throw out the suit.

Judge Sweet, however, ruled that the patents were “improperly granted” because they involved a “law of nature.” He said that many critics of gene patents considered the idea that isolating a gene made it patentable “a ‘lawyer’s trick’ that circumvents the prohibition on the direct patenting of the DNA in our bodies but which, in practice, reaches the same result.”

The case could have far-reaching implications. About 20 percent of human genes have been patented, and multibillion-dollar industries have been built atop the intellectual property rights that the patents grant.


WASHINGTON DC: PUBLIC SAFETY RADIO SYSTEMS ARE DOWN

March 30th, 2010

Via: WJLA:

Authorities say all Public Safety Radios are down in the District. All DC emergency responders use the system.

The police and fire radios went out of service around 7:15 p.m. Fire officials say 911 is not affected.

Fire officials say they switched to a back-up system that uses portal radios and borrows channels from Montgomery County and Arlington County within 10 minutes of discovering the problem. Fire officials say they are also using a computer system.

An MPD official says officers are getting calls via computers and phones.

The D.C. mayor’s office released a statement about the outage there were no breaks in emergency services and that “all 911 calls were handled in a timely and professional manner.”

The statement also said that Pepco is helping to restore power to the main radio tower.

The cause of the outage is unknown.

Authorities stress there is no reason for public to be concerned, thanks to the backup system, and that response times haven’t been affected.

DC Fire EMS has also established a communications operations center at Engine 2 located at 6th St & F St NW.


Sell-Off in U.S. Treasuries Raises Sovereign Debt Fears

March 29th, 2010

Via: Telegraph:

Investors are braced for a further sell-off in US Treasuries after dramatic moves last week raised fears that the surfeit of US government debt is starting to saturate bond markets.

The yield on 10-year Treasuries – the benchmark price of global capital – surged 30 basis points in just two days last week to over 3.9pc, the highest level since the Lehman crisis. Alan Greenspan, ex-head of the US Federal Reserve, said the abrupt move may be “the canary in the coal mine”, a warning to Washington that it can no longer borrow with impunity. He said there is a “huge overhang of federal debt, which we have never seen before”.

David Rosenberg at Gluskin Sheff said Treasury yields have ratcheted up 90 basis points since December in a “destabilising fashion”, for the wrong reasons. Growth has not been strong enough to revive fears of inflation. Commodity prices peaked in January and US home sales have fallen for the last three months, pointing to a double-dip in the housing market.

Mr Rosenberg said the yield spike recalls the move in the spring of 2007 just as the credit system started to unravel. “The question is how the equity market is going to handle this back-up in rates,” he said.

The trigger for last week’s sell-off was poor demand at Treasury auctions, linked to the passage of the Obama health care reform. Critics say it will add $1 trillion (£670bn) to America’s debt over the next decade, a claim disputed fiercely by Democrats.

It is unclear whether China is selling US Treasuries after cutting its holdings for three months in a row, or what its motive may be. There are concerns that Beijing may be sending a coded message before the US Treasury rules next month on whether China is a “currency manipulator”, though experts say China is clearly still buying dollar assets because it is holding down the yuan against the greenback. Some investors may be selling Treasuries as a precaution against a trade spat.

Looming over everything is the worry that markets will not be able to absorb the glut of US debt as the Fed winds down its policy of bond purchases, starting with an exit from mortgage-backed securities. It currently holds a quarter of the $5 trillion of the MBS market.


KBR Bills $5 Million For Mechanics Who Work 43 Minutes a Month

March 29th, 2010

Via: Mother Jones:

It was just a single contract for a single job on a single base in Iraq. The Department of Defense agreed to pay the megacontractor KBR $5 million a year to repair tactical vehicles, from Humvees to big rigs, at Joint Base Balad, a large airfield and supply center north of Baghdad. Yet according to a new Pentagon report [PDF], what the military got was as many as 144 civilian mechanics, each doing as little as 43 minutes of work a month, with virtually no oversight. The report, issued March 3 by the DOD’s inspector general, found that between late 2008 and mid-2009, KBR performed less than 7 percent of the work it was expected to do, but still got paid in full.

The $4.6 million blown on this particular contract is a relatively small loss considering that in 2009 alone, the government had a blanket deal worth $5 billion with KBR (formerly known as the Halliburton subsidiary Kellogg Brown & Root). Just days before the Pentagon released the Balad report, KBR announced it had won a new $2.3 billion-plus, five-year Iraq contract. But the inspector general’s modest investigation offers new insight into just how little KBR delivers and how toothless the Pentagon is to prevent contractor waste.


EU Draws Up Plans for Single ‘Economic Government’ to Prevent Crisis

March 29th, 2010

Via: Telegraph:

Germany and France have tabled controversial plans to create an “economic government of the European Union” to police financial policy across the continent.

They have put Herman Van Rompuy, the EU President, in charge of a special task force to examine “all options possible” to prevent another crisis like the one caused by the Greek meltdown.

His mission will be to draw up a master-plan for the best way to oversee and enforce economic targets set in Brussels as a key part of a bail-out package for Greece.

The options he will consider include the creation of an “economic government” by the by the end of the year.

“We commit to promote a strong co-ordination of economic policies in Europe,” said a draft text expected to be agreed by EU leaders last night.

“We consider that the European Council should become the economic government of the EU and we propose to increase its role in economic surveillance and the definition of the EU’s growth strategy.”


Mumbai: American Terror Suspect Traveled Unimpeded for Years

March 29th, 2010

Ah yes, the American terrorist / one time DEA informant.

Via: New York Times:

An American charged with helping plan the 2008 terrorist attacks in Mumbai, India, moved effortlessly between the United States, Pakistan and India for nearly seven years, training at a militant camp in Pakistan on five occasions, according to a plea agreement released by the Justice Department last week.

The odyssey of David C. Headley, 49, included scouting targets in several cities in India and meeting with a senior operative of Al Qaeda in Pakistan’s tribal areas. These and other new details of Mr. Headley’s activities, contained in the plea agreement, raise troubling questions about how an American citizen could travel for so long undetected from his home base in Chicago to well-established terrorist training camps in Pakistan.

The document shows that Mr. Headley made two trips to North Waziristan, the heart of Qaeda operations in the tribal area where the United States is still pushing Pakistan for a military offensive to clear out militants. His handlers, the document reveals, included a former Pakistani military commander with ties to a Pakistani extremist group and even Al Qaeda.

From there, Mr. Headley not only helped plan the Mumbai attack, it says, but he was put in contact with a Qaeda cell in Europe that may still be operative. The document shows the cell was well supplied with weapons and money and primed for an attack until the moment Mr. Headley was arrested by the F.B.I. at O’Hare airport last October.

…

Mr. Headley’s plea agreement with the government was not his first. After being sentenced for drug trafficking in the 1990s, he served as an informant in Pakistan for the Drug Enforcement Agency as part of a deal for a lighter sentence.


Fleeing America with More Than Pocket Lint? This May Apply to You

March 29th, 2010

Via: ZeroHedge:

It couldn’t have happened to a nicer country. On March 18, with very little pomp and circumstance, president Obama passed the most recent stimulus act, the $17.5 billion Hiring Incentives to Restore Employment Act (H.R. 2487), brilliantly goalseeked by the administration’s millionaire cronies to abbreviate as HIRE. As it was merely the latest in an endless stream of acts destined to expand the government payroll to infinity, nobody cared about it, or actually read it. Because if anyone had read it, the act would have been known as the Capital Controls Act, as one of the lesser, but infinitely more important provisions on page 27, known as Offset Provisions – Subtitle A—Foreign Account Tax Compliance, institutes just that. In brief, the Provision requires that foreign banks not only withhold 30% of all outgoing capital flows (likely remitting the collection promptly back to the US Treasury) but also disclose the full details of non-exempt account-holders to the US and the IRS. And should this provision be deemed illegal by a given foreign nation’s domestic laws (think Switzerland), well the foreign financial institution is required to close the account. It’s the law. If you thought you could move your capital to the non-sequestration safety of non-US financial institutions, sorry you lose – the law now says so. Capital Controls are now here and are now fully enforced by the law.


Vatican Confirms Report of Sexual Abuse and Rape of Nuns by Priests in 23 Countries

March 29th, 2010

Via: Independent:

The Catholic Church in Rome made the extraordinary admission yesterday that it is aware priests from at least 23 countries have been sexually abusing nuns.

The Catholic Church in Rome made the extraordinary admission yesterday that it is aware priests from at least 23 countries have been sexually abusing nuns.

Most of the abuse has occurred in Africa, where priests vowed to celibacy, who previously sought out prostitutes, have preyed on nuns to avoid contracting the Aids virus.

Confidential Vatican reports obtained by the National Catholic Reporter, a weekly magazine in the US, have revealed that members of the Catholic clergy have been exploiting their financial and spiritual authority to gain sexual favours from nuns, particularly those from the Third World who are more likely to be culturally conditioned to be subservient to men.

The reports, some of which are recent and some of which have been in circulation for at least seven years, said that such priests had demanded sex in exchange for favours, such as certification to work in a given diocese.

In extreme instances, the priests had made nuns pregnant and then encouraged them to have abortions.

The US article was based on five documents, which senior women from religious orders and priests have presented to the Vatican over the past decade. They describe a particularly bad situation in Africa. In a continent devastated by Aids, nuns, along with early adolescent girls, are perceived by some as safe sexual targets. The reports said that the church authorities had done little to tackle the problem.

The Vatican reports cited countless cases of nuns forced to have sex with priests. Some were obliged to take the pill, others became pregnant and were encouraged to have abortions. In one case in which an African sister was forced to have an abortion, she died during the operation and her aggressor led the funeral mass. Another case involved 29 sisters from the same congregation who all became pregnant to priests in the diocese.


Dozens Dead in Moscow Metro Bombings

March 29th, 2010

Russia Protests: Thousands Rally in ‘Day of Wrath’ Against Putin:

This weekend’s Russia protests, in which thousands gathered in 20 Russian cities for ‘Day of Wrath’ demonstrations against Prime Minister Vladimir Putin and other government officials, brought together diverse political forces.

And then…

Via: BBC:

At least 35 people have been killed after two female suicide bombers blew themselves up on Moscow Metro trains in the morning rush hour, officials say.

Twenty-three died in the first blast at 0756 (0356 GMT) as a train stood at the central Lubyanka station, beneath the offices of the FSB intelligence agency.

About 40 minutes later, a second explosion ripped through a train at Park Kultury, leaving another 12 dead.

No-one has said they carried out the worst attack in the capital since 2004.

But the BBC’s Richard Galpin in the Russian capital says past suicide bombings there have been blamed on Islamist rebels fighting for independence in the troubled North Caucasus region of Chechnya.

In February, Chechen rebel president Doku Umarov warned that “the zone of military operations will be extended to the territory of Russia… the war is coming to their cities”.

Moscow’s metro is one of the busiest subways in the world, carrying some 5.5m passengers a day.


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