Activists Collapse Radome at ECHELON Intercept Facility in New Zealand

April 30th, 2008

First, a technical point.

The Director of the Government Communications Security Bureau (GCSB), Air Marshal Bruce Ferguson, said that the purpose of the radomes is simply to protect the dishes from the weather. This statement is a lie by omission.

If the azimuth and elevation of a surveillance dish are known, the satellite that is under surveillance can be determined in a matter of seconds. Radomes are placed over satellite dishes to prevent observation of these data points. And yes, to protect them from harsh weather.

Now, a quick look at the political side.

There’s a lot of self-congratulatory silliness going on in activist circles right now.

Here’s a question for everyone who’s impressed by the popping-the-radome story:

Which country is New Zealand’s number two trading partner (Australia is #1)?

According to Statistics New Zealand, the answer is the United States of America.

With a statistic of that magnitude hanging over the land, these antics in Waihopai seem like a lot of folly to me.

Most—not all—political activism, focuses on symbols, abstractions, while the relevant and painful points remain behind the scenes. Guys, look at the underlying economic relationships between corrupt politicians and the corporations. That’s the smelly, messy stuff. Getting people to think differently about economic assumptions is the way to free New Zealand from the foreign entanglements that are becoming increasingly costly for our country.

That said, GE crops still aren’t allowed in New Zealand; neither is nuclear power. The credit for those miracles must go to the activists.

Via: New Zealand Herald:

Prime Minister Helen Clark has condemned this morning’s attack on the ‘spy base’ at Waihopai as “senseless”.

Three protesters have been arrested after invading the base and puncturing one of the large white domes that house two satellite dishes.

Adrian Leason, Sam Land and Dominican friar Peter Murnane are due to appear in Blenheim District court this afternoon.

Questioned in Auckland this morning, Helen Clark would not put an estimate on the cost of the attack but said Air Marshal Ferguson was travelling to Marlborough today to make an assessment.

“Obviously it’s just imposing a cost on the taxpayer having to rebuild. That’s why I describe it as a senseless act of criminal vandalism”.

Asked if any information had been lost in the security breach, she said she never commented on security matters.

“Our focus today is on the steps we’re going to take to support the police with the criminal investigation and to start repairing the damage.”

Helen Clark said the Government had received no comment from other countries regarding the breach.

Opponents of the Waihopai base argue that it is primarily feeding information to the United States in support of wars New Zealanders do not support.

But the secretive Government Communications Security Bureau (GCSB), which operates the base, near Blenheim, rejects this.

The protesters’ spokesman, Manu Caddie, spoke to nzherald.co.nz from Waihopai.

He said all three protesters had been arrested after cutting through three fences – one of which had razor wire – and using sickles to deflate the kevlar dome structure.

Mr Caddie estimated the group could have caused $30,000 worth of damage during the protest, which was against the US-led “war on terror”.

“We are drawing attention to the issue, particularly in an election year and encouraging New Zealanders to have a debate about whether they want to be funding this kind of activity in their backyard,” Mr Caddie said.

Air Marshal Ferguson said today the security breach was of grave concern.

“Naturally, this is a very serious breach and it’s one of the reasons I’m here – to look at that, and initiate an inquiry into how this in fact occurred so we can put in place further preventative measures,” he told Radio New Zealand

Air Marshal Ferguson said it was obvious the men had penetrated three fences before deflating the dome but it was unclear how other security devices failed to detect the intrusion.

Alarms did activate but CCTV footage was no help due to heavy fog, he said.

The domes, made of a rubberised material, acted purely as a “waterproof jacket” to protect the antennae from adverse weather, he said.

“We’re trying to protect them for longevity.”

He said there was some protest action at the base over the weekend but it was not known if it was linked to today’s attack.

Mr Caddie said there were direct parallels between the Roman Empire and modern day America. He said the group, which called themselves the Ploughshares, followed Jesus’ example of resisting power on an ethical basis.

Mr Caddie told NZPA news agency the action took about two months to plan and the group did not really expect to succeed.

“We were expecting not to get anywhere close to it.”

The planning involved a lot of texting, emails and phone calls, which were not intercepted, he said.

“I guess it shows that the system doesn’t work that well.”

He said the three protesters who had been arrested hoped not to go to jail, but were prepared for it.

A statement by the group from their website said: “Our group, including a Dominican Priest, temporarily closed the base by padlocking the gates and proceeded to deflate one of the large domes covering two satellite dishes.

“At 6am we cut through three security fences surrounding the domes – these are armed with razor wire, infrared motion sensors and a high voltage electrified fence.

“Once inside we used sickles to cut one of the two 30-metre white domes, built a shrine and knelt in prayer to remember the people killed by United States military activity.”

The group said that it had financed its activities through “personal savings, additional part-time employment and a small interest-free loan from one of our supporters”.

In its justification for the attack, the group said it was responding to the Bush administration claim that intelligence gathering was the single most important tool in the “so-called war on terror” and that Waihopai was a part of that.

“This war will have no end until citizens of the world refuse to let it continue.”

It said that it had carried out the attack in the name of the “Prince of Peace”. The website contains Christian references to the Bible.

One of the protesters is Father Peter Murnane from the Dominican Priory in Auckland.

Father Chris Loughnan, who lives with Father Peter, said he was unaware of any arrests.

He said he was also unaware of the protest but it didn’t surprise him.

“It’s about New Zealand’s passive cooperation in war mongering. The information obtained at Waihopai is used in military intelligence,” Father Chris said.

Green Party foreign affairs spokesman Keith Locke said the party would be calling for a public debate and information on the cost and the purpose of the Waihopai base if it was part of the next government.

Mr Locke said the US spy base effectively compromised New Zealand’s independent foreign policy.

He said he had previously asked the Government for a breakdown of the GCSB’s budget but was refused. Mr Locke said the true cost of the spy base to New Zealanders was not known.

The intelligence game

* The secretive Government Communications Security Bureau (GCSB) collects “intelligence” on New Zealand’s behalf, and is responsible for guarding the country’s secret information.

* Its budget for the current financial year is $39.288 million and it employs about 370 staff.

* The GCSB’s head office is in Wellington and it operates intelligence-gathering posts at Waihopai, in Marlborough, and at Tangimoana, near Bulls


13 Killed in Tijuana Gunbattles

April 29th, 2008

Consider the proximity of this situation to the U.S. It’s just a few minutes drive across the U.S./Mexico border into Tijuana.

Then there’s Chicago: Nine dead, 36 wounded over one weekend.

Via: AP:

Massive gunbattles broke out between suspected drug traffickers who fired at each other while speeding down heavily populated streets of this violent border city early Saturday, killing 13 people and wounding nine.

All of the dead were believed to be drug traffickers, possibly rival members of the same cartel who were trying to settle scores, said Rommel Moreno, the attorney general of Baja California state, where Tijuana is located.

“Evidently this is a confrontation between gangs,” Moreno told reporters.

Eight suspects and one federal police officer were injured in the pre-dawn shootings, none gravely, said Agustin Perez Aguilar, a spokesman for the state public safety department. The suspects are being held on suspicion of weapons possession among other possible charges.

Police recovered 21 vehicles, many with bullet holes or U.S. license plates; a total of 54 guns; and more than 1,500 spent shell casings at various points in the city where the battles broke out, Perez Aguilar said.

At one point, the alleged traffickers fired at one another as their sport-utility vehicles sped down a busy six-lane boulevard lined with restaurants, car repair shops, medical offices and strip malls.

Bullet holes could be seen in the walls of a factory building and on the perimeter wall of a housing complex along the road, but no bystander deaths were reported. It was not clear how long the gunbattles lasted.

A mall security guard who did not want to give his name for fear of reprisals said he heard hundreds of gunshots fired, some of which passed near him.

“I hit the ground,” the guard said. When he got up again, he said he saw bullet holes in the wall behind him, a dead man lying in a pool of blood and 11 abandoned, bullet-ridden SUVs on the street.

The first shootout claimed seven victims. Three subsequent gunbattles — one outside a hospital — claimed five more, police said. The body of a man police believe to be the 13th victim turned up at a city hospital.

Tijuana, a sprawling metropolis just across the border from San Diego, California, is pervaded by frequent violence, much of it blamed on drug cartels battling for control of lucrative trafficking routes. The city is home to the Arellano-Felix drug cartel.

In January, eight people died in a gunbattle at a Tijuana safe-house apparently used by drug hit men to hold kidnapped rivals. In that confrontation, hit men holed up inside the house battled police and soldiers with automatic weapons for three hours.


Chinese Children Sold “Like Cabbages” Into Slavery

April 29th, 2008

Via: Reuters:

Thousands of children in southwest China have been sold into slavery like “cabbages”, to work as labourers in more prosperous areas such as the booming southern province of Guangdong, a newspaper said on Tuesday.

China announced a nationwide crackdown on slavery and child labor last year after reports that hundreds of poor farmers, children and mentally disabled were forced to work in kilns and mines in Shanxi province and neighboring Henan.

“The bustling child labor market (in Sichuan province) was set up by the local chief foreman and his gang of 18 minor foremen, who each manage 50 to 100 child labourers,” the Southern Metropolis Newspaper said.

“The children generally fall between the ages of 13 and 15, but many look under 10,” it added.

The newspaper said 76 children from the same county, Liangshan, had been missing since the Chinese Lunar Year festival in February, 42 of whom had already left the region to work.

“The youngest kids found in the child labor market were only seven and nine years old,” it said.

According to a contract exposed by an undercover reporter, a child laborer is paid 3.5 yuan ($0.50) an hour and must work at least 300 hours a month.


Number of U.S. Homes Facing Foreclosure Sees One Year Increase of 112%

April 29th, 2008

Via: AP:

The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier, as weakening property values and tighter lending left many homeowners powerless to prevent homes from being auctioned to the highest bidder, a research firm said Monday.

Among the hardest hit states were Nevada, Florida and, in particular, California, where Stockton led the nation with a foreclosure rate that was 6.6 times the national average, Irvine, Calif.-based RealtyTrac Inc. said.

Nationwide, 649,917 homes received at least one foreclosure-related filing in the first three months of the year, up 112 percent from 306,722 during the same period last year, RealtyTrac said.

The latest tally also represents an increase of 23 percent from the fourth quarter of last year.

RealtyTrac monitors default notices, auction sale notices and bank repossessions.

All told, one in every 194 households received a foreclosure filing during the quarter. Foreclosure filings increased in all but four states.

The most recent quarter marked the seventh consecutive quarter of rising foreclosure activity, RealtyTrac noted.

“What would normally alleviate the foreclosure situation in a normal market is people starting to buy properties again,” said Rick Sharga, RealtyTrac’s vice president of marketing.

However, the unavailability of loans for people without perfect credit and a significant down payment is slowing the process, he said.

“It’s a cycle that’s going to be difficult to break, and we’re certainly not at the breaking point just yet,” Sharga added.


Oil Company Profits Up Sharply

April 29th, 2008

Mmm hmm.

Via: BBC:

Oil firms Royal Dutch Shell and BP have made better-than-expected first-quarter profits thanks to the rising price of oil, which is close to $120 a barrel.

Shell made profits of $7.8bn (£3.9bn) in the first three months of the year, up from $6.9bn a year ago.

And rival BP saw its profits rise 48% to $6.588bn (£3.31bn), from $4.4bn.

In January, Anglo-Dutch firm Shell reported annual profits of $27.56bn (£13.9bn) for 2007, a record for a UK-listed company.

In midday trade in London, shares in both Shell and BP were up by more than 5.75%, and industry peers BG Group and Cairn Energy were also among the top gainers.


Fed’s Rescue of Bear Stearns “Worst Policy Mistake in a Generation”

April 29th, 2008

I’d love to know what would have unwound if Bear had been left to die… Maybe, a better question is: What wouldn’t have unwound?

Via: Wall Street Journal:

The Federal Reserve’s rescue of Bear Stearns Cos. will come to be seen as its “worst policy mistake in a generation,” a former top Fed staffer said.

The episode will be seen as comparable to “the great contraction” of the 1930s and “the great inflation” of the 1970s, Vincent Reinhart said Monday at a panel organized by the American Enterprise Institute, a conservative-leaning think tank where he is now a scholar. Until mid-2007, Mr. Reinhart was director of monetary affairs at the Fed and secretary of its policy-making panel, the most senior position on the Fed’s Washington-based staff.

His appraisal is one of the harshest yet by a high-profile observer. The Fed last month lent Bear Stearns money to prevent a bankruptcy filing and then financed $29 billion of its assets to facilitate a takeover by J.P. Morgan Chase & Co. Former Fed Chairman Paul Volcker has said the move went to “the very edge of [the Fed’s] lawful and implied powers,” although he has since said that that wasn’t meant as a criticism. Congress and analysts have deferred to the Fed’s judgment.

Mr. Reinhart said the bailout “eliminated forever the possibility the Fed could serve as an honest broker.” In 1998, the Fed coaxed private creditors of Long-Term Capital Management to bail out the hedge fund but didn’t have to put up its own money. If it ever tries a similar maneuver on a Wall Street cohort, he said, “The reasonable question any person in the room will ask is, ‘How much will you contribute to the solution?'”

Mr. Reinhart said the Fed’s move may have been justified if the alternative was a chain-reaction run on many other investment banks. But he asked if other options were available, such as taking a “tougher line” with J.P. Morgan, seeking other suitors, removing certain assets from Bear’s portfolio or quickly implementing its previously announced offer to temporarily swap Treasury securities for dealers’ less liquid assets. “All those things were possible but not pursued,” he said.


McCain Accused of Accepting Improper Donations from Rothschilds

April 29th, 2008

Via: Guardian:

A US campaign watchdog has accused presumptive Republican president nominee John McCain of violating election laws by accepting campaign contributions from two prominent Londoners.

At issue is a fundraising luncheon held in March at London’s Spencer House, during McCain’s swing through the United Kingdom. An invitation to the event lists Lord Rothschild and Nathaniel Rothschild as hosts, and indicates the event was made possible with their “kind permission”.

Judicial Watch, a Washington organisation instrumental in the March release of Hillary Clinton’s White House schedules, has asked US election monitors to investigate whether the Rothschilds improperly sponsored the fundraiser. US political campaigns are forbidden from accepting contributions from foreign nationals.

“The question is whether or not the Rothschilds paid for the event, the venue, the catering, or any other related costs,” said Judicial Watch president Tom Fitton.

Tickets to the event cost $1,000 to $2,300, and the luncheon dress code was “lounge suits,” the Washington Post reported in March.

The McCain campaign did not immediately return a call seeking comment.

Judicial Watch also complained to the US election authority, the federal election commission, about Elton John’s involvement in Clinton’s campaign. The group alleged the British rocker broke US campaign laws by performing at a fundraiser for the New York senator. The Clinton campaign argued US law allowed the British musician to volunteer his time and solicit Americans for contributions.

The federal election commission is unlikely to act soon on the group’s McCain complaint. It is currently short-handed, a result of a political squabble between the Democratic-led senate and the Bush administration, and lacks a quorum to take action.


Revolution MoneyExchange

April 29th, 2008

UPDATE: I Have Earned the Maximum Commission from Signups

Fifty Cryptogon readers signed up for accounts within about 12 hours of this post going live. I’ve earned the maximum allowable commission of $500! Thank you to each of you who signed up.

They are still paying $25 just for signing up.

— End Update —

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‘Retired’ Goldman Sachs Executive to Head Trading for Merrill Lynch

April 28th, 2008

What we have here isn’t some, “unseen hand of the market.” It’s more like a bunch of tentacles.

Henry Paulson is the United States Treasury Secretary. He’s also a former CEO of Goldman Sachs.

Joshua Bolten is the current White House Chief of Staff. He served as Goldman’s executive director for legal and government affairs in between 1994 and 1999. His father worked for CIA.

Stephen Friedman served as chairman of President George W. Bush’s Foreign Intelligence Advisory Board since December 2005. Friedman had worked for Goldman Sachs for 30 years. He is a current member of the Goldman Sachs Board of Directors.

Robert Rubin, U.S. Treasury Secretary during both Clinton terms, previously worked for Goldman Sachs from 1966 to 1992. From 1990 to 1992, Rubin served as Co-Chairman and Co-Senior Partner along with Stephen Friedman (see above). Rubin is now Director and Chairman of the Executive Committee of Citigroup, the largest company in the world (assetts in excess of $2 trillion). He also happens to be co-chairman of the board of directors of the Council on Foreign Relations.

John Thain, the current CEO of Merrill Lynch, previously served as President, Chief Operating Officer, Chief Financial Officer of Goldman Sachs.

Thomas Montag, recently hired by Thain to serve as the head of trading for Merrill Lynch, retired from Goldman Sachs after 22 years. His last position was head of sales and trading in the Americas.

Which other Goldman Sachs alumni should we be aware of?

Via: Bloomberg:

Merrill Lynch & Co. Chief Executive Officer John Thain, assembling his own management team after the departure of more than 20 executives, hired former Goldman Sachs Group Inc. colleague Thomas Montag to head trading worldwide.

Montag, 51, who retired last year as Goldman’s head of sales and trading in the Americas, will report directly to Thain, New York-based Merrill said today in a statement. He will start Aug. 4, company spokeswoman Jessica Oppenheim said.

Merrill’s management ranks have thinned since Thain, 52, took over as CEO on Dec. 1, as executives promoted under former CEO Stan O’Neal stepped down or were forced out. Two weeks ago, Thain said that “filling out the senior management team” was his top strategic priority in the U.S.

Montag, who worked at New York-based Goldman for 22 years, takes over Merrill’s trading business after more than $30 billion of writedowns on subprime mortgages and bonds saddled the 84-year-old firm with record losses and led to O’Neal’s ouster.

Thain, who worked at Goldman for 25 years, overlapped with Montag until 2004, when Thain left to become CEO of the New York Stock Exchange. Thain had confirmed as far back as January that he was trying to recruit Montag.


Dollar Slide Drives Budget as Japan Shuns Treasuries

April 28th, 2008

Via: Bloomberg:

Add another ailment to the U.S. misery index of soaring gasoline and wheat costs and falling home values: a federal deficit that is burgeoning as foreign investors led by the Japanese recoil from the slumping dollar.

The Japanese, who own $586.6 billion, or 12 percent of U.S. government debt, had their worst quarter in Treasuries this decade, losing 7 percent in the first three months of the year as the dollar fell to the lowest since 1995 versus the yen, Merrill Lynch & Co. indexes show. Dai-ichi Mutual Life Insurance Co., Meiji Yasuda Life Insurance Co. and Sumitomo Life Insurance Co., three of the nation’s four-biggest insurers, would rather accept the world’s lowest bond yields in Japan than buy U.S. debt.


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