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Is China the Next Lehman Brothers? Print
Sunday, 06 April 2014 08:24

Cassidy writes: "The worry is that large parts of China now resemble Arizona, Florida, and Nevada circa 2007, when the great Greenspan-Bernanke real-estate bubble was going 'pop.'"

 (photo: John W Banagan/Getty Images)
(photo: John W Banagan/Getty Images)


Is China the Next Lehman Brothers?

By John Cassidy, The New Yorker

06 April 14

 

artin (Two Brains) Wolf, the Financial Times’ venerable economics commentator, doesn’t always have the correct answers. But he invariably poses the right questions, which, in a journalist, is often more important. In his column this week, Wolf asks, “Is China different? Or must its borrowing binge, like most others, end in tears?”

That the Middle Kingdom’s transformation from a Communist command economy is a great success story cannot be doubted; it’s one of the wonders of modern history. Since 1991, according to the World Bank’s database, its inflation-adjusted growth rate has averaged about ten per cent a year. Rapid growth has dragged hundreds of millions of people out of grinding poverty and turned China, according to some measures, into the world’s second-largest economy. (In terms of G.D.P. per capita, the performance is a bit less impressive. In 2012, according to the World Bank, China’s was $6,091, placing it among places like Peru, Serbia, and Thailand.)

In the past few years, however, China’s growth rate has slowed down a bit, and the country has racked up large debts. How large? Wolf provides a disturbing chart, based on figures from the International Monetary Fund, that shows overall debts rising from about a hundred and twenty-five per cent of G.D.P. in 2008 to two hundred per cent in 2013. That’s quite a leap. As anybody who has visited China recently can confirm, it has coincided with an enormous building boom, which has left many cities festooned with empty apartment buildings and shopping malls.

The worry is that large parts of China now resemble Arizona, Florida, and Nevada circa 2007, when the great Greenspan-Bernanke real-estate bubble was going “pop.” “Signs are mounting that the housing market in a number of cities is not just cooling but actually cracking,” Wei Jao, an economist at Société Générale, wrote recently. According to a lengthy report from China in Thursday’s F.T., which quoted Jao, developers are already slashing prices by up to forty per cent in selected areas. But that hasn’t been sufficient to prevent some of them from having trouble keeping up interest payments on the loans they took out to finance construction. And that, in turn, is raising concerns about the Chinese financial institutions that did much of the lending, such as banks, “shadow banks,” and trust companies. (Shadow banks are unregulated finance companies that borrow and lend at interest rates higher than those available in the regular banking system.)

To some observers, particularly fans of Hyman Minsky, the late Keynesian economist, it looks suspiciously like China may be approaching a Minsky moment—that dreadful instant at which most of the participants in the boom recognize that the game is up, credit stops flowing, one or more financial institutions moves to the verge of collapse, and panic ensues. Figures released last month show that credit from China’s shadow banks has virtually dried up. In January, about a hundred and sixty billion dollars’ worth of new loans were issued through shadow banks; in February, virtually none were.

The optimistic reading is that, for all the changes it has gone through, China is still China—an authoritarian country where the government ultimately dictates the flow of money and credit. And the government, unlike the corporate sector, is not overly indebted, so it has room to maneuver. (The International Monetary Fund reckons that the over-all ratio of public-sector debt to G.D.P. is about forty-five per cent, which is much lower than the ratios in the United States and most other Western countries.) If the biggest developers get into serious trouble, the authorities will step in and quietly bail them out, the optimists say. If liquidity dries up in the banking system, the central bank will supply it. If the public starts to fret about the banks, and an incipient run develops—always a danger in a country, such as China, that doesn’t have a deposit-insurance system—the government will bring forward its plans to set one up.

Since everybody involved knows all these things, the argument goes, there won’t be a Minsky moment to begin with, and China will escape the sort of shock that plunged the United States and other Western countries into the Great Recession. Backward induction will save the day. Indeed, the rate of growth might pick up, as the government relaxes some of the credit restrictions it had imposed to cool down the property market and possibly even introduces a new fiscal stimulus.

Certainly, the financial markets don’t seem to be concerned. On Wednesday, global stock markets hit their highest levels since the end of 2007. The Shanghai market, after falling sharply between December and February, has bounced back a bit in the past few weeks. Pronouncing judgement, Wolf comes out for the optimists. “China will not have a financial meltdown,” he says bluntly. But, like many other analysts, he sees a period of lower growth ahead, as the Chinese government seeks to rebalance its economy away from debt and capital investment, and toward consumer spending and services. “The accumulation of debt is likely to end not with a financial bang but with a whimper, as growth peters out,” he writes.

Even if China can avoid the immediate danger of a crash, the move to a newer, more durable growth model represents a tremendous challenge. Some China hands, such as Stephen Roach, the former chief economist at Morgan Stanley who is now at Yale, believe the authorities in Beijing have a handle on the task, and are making progress. Other observers, such as George Soros, are more dubious. At the beginning of the year, Soros said that using stimulus policies to boost growth would only postpone the day of reckoning, because “restarting the furnaces also reignites exponential debt growth, which cannot be sustained for much longer than a couple of years.”

Since China is one of the many areas on which I am alarmingly inexpert, I’m going to remain agnostic on this one, at least for now. I would note, however, that if China manages to muddle through and achieve a “soft landing” it will be one of the few countries on record that have escaped a big credit and real-estate boom without a wrenching recession. If you want more reasons to be skeptical, I suggest reading “Avoiding the Fall: China’s Economic Restructuring,” by Michael Pettis, an economist at Peking University who also maintains a lively but irregular blog, where he has consistently warned that the challenges facing China are much bigger than many outsiders realize. If you want a more upbeat take, or you have recently bought calls on the Shanghai composite, you might consult the analysis of Roach, who has a new book out on the economic co-dependency of the United States and China.

One thing is certain: what happens in China will have a big impact on the rest of the world, the United States included. It’s not just that China is now America’s third-biggest export market (and its largest source of imports). It’s the world’s biggest importer of oil, iron ore, copper, and many other commodities. For the past decade or so, it’s been the biggest source of global growth. A big shock to China would be a big shock to everybody.


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Time for Public Financing of Elections Print
Sunday, 06 April 2014 08:22

Filipovic writes: 'To the choice few who can donate more than $123,200 to political campaigns, congratulations! You have a newly expanded right to free political speech, which few others in America can afford.'

David Barrows, of Washington, D.C., waves a flag with corporate logos and fake money during a rally against money in politics outside the Supreme Court on Oct. 8, 2013. (photo: Chip Somodevilla/Getty Images)
David Barrows, of Washington, D.C., waves a flag with corporate logos and fake money during a rally against money in politics outside the Supreme Court on Oct. 8, 2013. (photo: Chip Somodevilla/Getty Images)


Time for Public Financing of Elections

By Jill Filipovic, Al Jazeera America

06 April 14

 

o the choice few who can donate more than $123,200 to political campaigns, congratulations! You have a newly expanded right to free political speech, which few others in America can afford. That’s your latest prize from a Supreme Court that is intent on promoting the interests of the rich, no matter how much elevating a small number of hyperelite voices effectively crushes a great many more. So here’s a pat on the back, really. You’ve earned it. Or at least you paid for it.

On Wednesday, the U.S. Supreme Court handed down its ruling in McCutcheon v. Federal Exchange Commission (PDF), the latest case to take on campaign finance laws. Though McCutcheon dealt with a fairly narrow issue — an aggregate limit on the amount an individual may give to political candidates, parties and noncandidate committees, capped at $123,200 per two-year election cycle — the language in the decision makes obvious the court’s determination under Chief Justice John Roberts to invalidate a swath of regulations around money in politics.

McCutcheon, a wealthy Alabama businessman, contributed to the campaigns of 16 federal candidates in the 2011–12 election cycle and argued that the aggregate contribution limit, which prevented him from contributing to the campaigns of 12 other politicians as well as a slew of political committees, limited his right to free speech. He is not actually a constituent of many of the politicians to whom he donated (and wished to donate). That is exactly the goal McCutcheon had in mind: He wants his voice not just heard and brought up the chain by his political representatives (which is how democracy theoretically functions); he wants the ability to exert his outsize financial influence over as many people as possible. Perhaps most disturbing is the court’s contention that almost any type of campaign finance regulation — short of barring quid pro quo bribery — is unconstitutional.

“The only type of corruption that Congress may target is quid pro quo corruption,” Roberts writes in the McCutcheon opinion. It doesn’t matter that money may be used to garner access or influence, Roberts says. “The line between quid pro quo corruption and general influence must be respected in order to safeguard basic First Amendment rights.”

This isn’t the first campaign finance law the Supreme Court has struck down, and it won’t be the last. With elected officials from all parties increasingly beholden to big-money interests and spending nearly as much time fundraising as actually governing — and with the hyperwealthy given both a larger megaphone and a stronger arm — the question is, Now what?

One answer is public financing for campaigns. A particularly innovative and potentially effective solution comes from the Brennan Center for Justice at New York University School of Law: Small donations are matched and multiplied by public funds, creating financial incentives for candidates to appeal to all their constituents and encouraging average citizens to participate in the political process. Under the Brennan Center model, a $50 donation would be matched and then multiplied by, say, five — making it worth $300 to the candidate.

Ian Vandewalker, counsel for the Brennan Center, told me it’s troubling that we see money as speech and that such a system means legislators spend more time fundraising than working on behalf of their constituents. But the more insidious issue, he said, is which voices politicians are hearing and how that skews policy and governance.

“When legislators have questions about the problems we’re facing and how can we solve them, they’re hearing from the people with the big checks,” he said. “Frankly, rich people and average people have very different ideas about what our problems are and what the solutions might be.”

Public financing means broader and more diverse representation. If your campaign funding is mostly made up of constituents giving $50 or $100 donations that are multiplied into $300 or $600 donations, the influence of the rare constituent who can afford to write a $5,000 check is greatly reduced.

When constituents know their donations will be meaningful, they’re also more likely to donate. For donations up to $175, for example, New York City matches them 6 to 1. New York State has no such system but is considering one. The Brennan Center found that residents in low-income neighborhoods of color, who are often poorly represented by their elected officials, were significantly more likely (PDF) to donate to publicly financed city elections than to state elections without such financing. Residents of Bedford-Stuyvesant, a low-income, predominantly black neighborhood, were 24 times more likely to donate to city council candidates than to candidates running for state assembly. In Chinatown, voters were 23 times more likely to donate to the city candidates. In the Latino neighborhoods in the Bronx and upper Manhattan, 12 times.

Average people, most of whom don’t make anything near $123,200 a year, let alone have the means to donate that much, see the value in this financing. But politicians have been slower to latch on, either because public financing is relatively new and not how they got elected in the first place or because they have financial incentives to stick with the status quo.

“Public financing systems are potentially highly valuable to politicians, and it’s important to help them see that,” Vandewalker said. “They can spend less time fundraising and spend more time shaking hands with people in their districts who are actually going to vote for them. They can stop this cycle of representing people who want access and start representing the people they were elected to represent.”

Big money in politics is unfortunately a system that is excellent at perpetuating, replicating and building on itself. The more money any one candidate gets, the more his opponent needs. And candidates who ride into office on the backs of big donors are naturally sympathetic to those donors’ interests — in policy and, potentially more dangerous, in court appointments. Decisions such as McCutcheon and Citizens United were a long time coming and part of a well-funded, Republican-led strategy to ensure that judges across the federal courts would further open the door for a handful of wealthy influencers. There’s no shady, sinister conspiracy to unravel, but instead a much more mundane money trail: The wealthy donate to politicians who they believe will serve their interests; politicians compete to get more and larger donations for re-election and to curry favor with their political party by courting those with money — i.e., the wealthy; the wealthy reward sympathetic policymaking with even more money; politicians are further incentivized to push those pro-rich policies and to appoint judges to the bench who will uphold those policies and overturn the ones that challenge them. In this way, the corrupting influence affects all three branches of government.

The task of reformers, then, is to stop this vicious cycle at its source, by upending the campaign financing system. To get political leaders who are responsive to the public, rather than just the wealthy, requires a public financing system.

“What we need is a mechanism to ensure that wealth doesn’t equal power in the political process,” Vandewalker said. “Public campaign financing is one of the ways to do that. It should be one person, one vote, not one dollar, one vote.” 


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Noam Chomsky: 'Eliminate All Nuclear Weapons' Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=17136"><span class="small">Jane Ayers, Reader Supported News</span></a>   
Saturday, 05 April 2014 14:43

Excerpt: "The record is hair-raising. There are very high standards worldwide that can't be met, or aren't being met, and there is too much room for human error."

Prof. Noam Chomsky, linguist, philosopher, cognitive scientist and activist. (photo: Va Shiva)
Prof. Noam Chomsky, linguist, philosopher, cognitive scientist and activist. (photo: Va Shiva)


Noam Chomsky: 'Eliminate All Nuclear Weapons'

By Jane Ayers, Reader Supported News

05 April 14

Professor Noam Chomsky, the world-renowned political theorist and Professor Emeritus of Linguistics at MIT, recently delivered the prestigious Nuclear Age Peace Foundation’s (NAPF) 13th Annual Frank K. Kelly Lecture on Humanity’s Future. His lecture, entitled “Security and State Policy” was delivered to a capacity audience at the Lobero Theatre in Santa Barbara, California on February 28th. After his lecture, Chomsky was also presented the foundation’s Lifetime Achievement Award.

David Krieger, President of NAPF, stated, “He is one of the world’s wise men. The depth of his knowledge about the complex and varied crises that confront humanity is more than impressive. He is a truth teller to those in power, to other intellectuals, and to the people of the world.” Professor Chomsky has recently joined the Advisory Council of NAPF, which also includes members Archbishop Desmond Tutu, Jane Goodall, Queen Noor of Jordan, Daniel Ellsberg, Bianca Jagger, and H.H. the Dalai Lama.

In his lecture Chomsky pointed out, “It is hard to contest the conclusion of the last commander of the Strategic Air Command, General Lee Butler, that we have so far survived the nuclear age by some combination of skill, luck, and divine intervention, and I suspect the latter in greatest proportion.”

For a full transcript of his Frank K. Kelly lecture, go to NAPF: http://www.wagingpeace.org/security-and-state-policy

Before Prof. Chomsky’s lecture, I conducted a phone interview with him in which he addressed some of today’s important nuclear issues.

~ Jane Ayers

: General Lee Butler, the former commander in chief of the Strategic Air Command, retired his post in 1996, calling for the worldwide abolition of nuclear weapons. I interviewed him at the time, and he emphasized his concern about the fragility of the world’s nuclear first alert systems, and especially with Russia. At that time he called for total abolition of nuclear weapons, yet now years later promotes a responsible global reduction of nuclear dangers. Are you concerned about the fragility of the first alert systems?

Chomsky: Yes, he also pointed out that the 1960 U.S. nuclear war plan, called the Single Integrated Operational Plan (SIOP), was the most outrageous document in human history, except perhaps for the Russian counterpart, which we knew nothing about. This U.S. nuclear war plan, if our first alert system had alerted a Soviet strike, would have delivered 3200 nuclear weapons to 1060 targets in the Soviet Union, China, and allied countries in Asia and Europe. Even with the end of the Cold War, because of the ongoing superpower nuclear arms race, Gen. Butler bitterly renounced the current nuclear programs/systems as a death warrant for the species.

Q: In his address at the National Press Club in February, 1998, Gen. Butler referred to “the grotesquely destructive war plans and daily operational risks” of our current nuclear systems, and emphasized “a world free of the threat of nuclear weapons is necessarily a world devoid of nuclear weapons.” He also referred to the “mind-numbing compression of decision-making under the threat of a nuclear attack.” Do you think these concerns are still valid today?

Chomsky: Yes, General Lee Butler recanted his whole career, and gave elegant speeches about the numbers of nuclear missiles devoted to nuclear deterrence being an abomination. Yes, the current nuclear dangers still remain quite high.

Q: During the Bush administration, in August of 2007, there was the unauthorized movement of nuclear bombs from Minot Air Force Base in North Dakota to Barksdale Air Force Base in Louisiana. Six AGM-129 Advanced Cruise Missiles (ACMs), each loaded with W80-1 nuclear warheads, were moved and left unprotected for 36 hours, violating the strict checks and balances of nuclear weapons storage. Investigations later concluded that the nuclear weapons handling standards and procedures had not been followed. Are these the kind of dangers you are referring to?

Chomsky: How dangerous the first alert system is remains only a tiny portion of the overall dangers. To understand more of the dangers of nuclear weapons, definitely read journalist Eric Schlosser’s book, “Command and Control: Nuclear Weapons, the Damascus Accident, and the Illusion of Safety.” (Eric Schlosser is National Security Correspondent for The Nation Magazine.) In his book, there are many details of near-accidents that have happened, and that could have been catastrophic. The possibilities of close calls due to human error were probably even worse on the Russian side. There have been many times we have been extremely near to having a nuclear war.

The U.S. has an automated response system with data coming in about possible missile attacks. However, it is still left to civilians to make the major decision to destroy the world, and usually with just a few minutes to make that decision. To launch a nuclear war is essentially in the hands of the president. We can’t survive something like that, and especially with so many other nuclear powers worldwide. With India and Pakistan, the same tensions can easily blow up in that region.

We also have to address these issues of unauthorized movement of nuclear bombs, and also the reality of simple human error. The record is hair-raising. There are very high standards worldwide that can’t be met, or aren’t being met, and there is too much room for human error. There have also been many circumstances where the authorization to launch missiles have been delegated to lower-level commanders. Even though there is a two-person requirement, if one does lose control and wants to destroy the world, then the fate of the world is the hands of the other person.

Q: The Obama administration is calling for a reduction of troops across the board (Army, Navy, Air Force, etc.), and emphasizes that the U.S. now has so much might and strength from U.S. missile technology, that we no longer need so many troops. What do you think of this?

Chomsky: A reduction to the amount in the world today? Well, the two major wars, the Bush wars, have been winding down so a lesser amount of troops are needed now. We are also letting go of numbers of troops that we needed to fight two wars simultaneously. We have the biggest military budget in the world, and it is equal to the rest of the world’s military budget combined. War-making is now being transferred to other domains, i.e., drone warfare, etc.

In The New York Times recently, there was a debate about whether the U.S. should murder [with drones] an American in Pakistan. In the article, there is no question raised about killing of non-Americans. These citizens in other countries are all apparently fair game. For example, if anyone is holding their cell phone that day, the drone can easily kill them. But when an action like that occurs, it immediately creates more terrorists. The irony is that while fighting terrorism, we are carrying out a version of a global terrorist campaign ourselves, and are also creating additional dangers for our own country.

So we are now utilizing a new form of warfare with the use of drones. Drones are assassinating people worldwide, without these people being proven guilty first in a court of law. They are just killed by a drone. Gone. Our president decides it.

In addition, with the reduction of numbers of overall troops, it still causes an increase of Special Forces operations on the ground. So what kind of operations are they doing now? Read Jeremy Scahill’s book, “Dirty Wars.” [Jeremy Scahill is National Security Correspondent for The Nation Magazine.] He points out how all of these operations are causing the United States to be the most feared country in the world.

Recently, there was an international poll conducted by a major polling organization in which they asked, “Which country is the greatest threat to world peace?” “The U.S.” was answered the most. The whole world sees us that way nowadays. Around the world, the U.S. is viewed as its own terrorist operation, and these actions create anger in other countries. It is becoming a self-generating system of terrorism itself (while fighting terrorism). Even if the U.S. reduces the number of soldiers needed for the invasion of other countries, we still continue to use drones now too. It creates a lot of anger worldwide against the U.S. when innocent citizens internationally are continually being killed, and/or no court of law is first ruling the suspected terrorists are guilty before being killed by the drones.

Q: A Russian armed intelligence-gathering vessel, the Victor Leonov SSV-175 Warship, conducted a surprise visit to Cuba on the same day Russia announced plans to expand their global military presence – establishing permanent bases in Cuba, Nicaragua, Vietnam, and Singapore. Amid the rising tensions with Putin over the Ukraine, do you think the U.S. could have another version of the Cuban Missile Crisis, or an escalation of war in the Ukraine, especially with NATO troop movement in Eastern Europe?

Chomsky: Ukraine is one issue right now that is very sensitive. Cuba is another target of US campaigns against it. The U.S. has conducted major, official governmental campaigns against Cuba, especially financial warfare, for fifty years. The former Cuban Missile Crisis was to deter an invasion of the U.S.

The sudden presence of a Russian ship in Cuba at the beginning of the Ukraine situation was probably a symbolic move. Russia is surrounded by U.S. military bases and nuclear missiles. We have one thousand military bases around the world with nuclear missiles aimed at all our potential enemies. The country of Ukraine is split right now: Western-oriented and Russian-oriented. It’s located on the Russian border, so there are major security issues for Putin. Ukraine has the only naval base leading to water (the Black Sea) in Crimea, so from Russia’s point of view, the Ukraine situation is a security threat to them, especially with NATO moving into Eastern Europe. If the Ukraine joins the EU, then Russia will have hostile relations at their border. Ukraine has historically been part of the Russian empire, so with the demands being made right now by the U.S., and Russia’s counter-demands, and with the presence of Russian troops, the clash might even blow up to a threat of a major war, which of course, could lead to a nuclear missile confrontation.

Q: Is nuclear disarmament really possible?

Chomsky: It is very possible to take away the nuclear threats to mankind and human survival. In the case of eliminating all nuclear weapons worldwide, it only takes everyone agreeing to do it. We know what can be done to eliminate the nuclear weapons threats to humankind. The U.S., like all nuclear nations, has an obligation of good faith efforts to eliminate nuclear weapons entirely.

However, with environmental catastrophes, it is not so obvious what the world must do to avoid the accumulative dangers. But one important measure of what to do is to realize that the longer we delay stopping the use of fossil fuels, the worse the worldwide environment will be that we are leaving to our grandchildren. They just won’t be able to deal with it later. However, with nuclear weapons, we can most definitely disarm, and we have a responsibility to do this.

Jane Ayers is an independent journalist (stringer with USA Today, Los Angeles Times, etc.), and Director of Jane Ayers Media. She can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or www.wix.com/ladywriterjane/janeayersmedia

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Leak the CIA Report: It's the Only Way to Know the Whole Truth About Torture Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=29990"><span class="small">Trevor Timm, Guardian UK</span></a>   
Saturday, 05 April 2014 14:31

Timm writes: "It's possible the only way the public will ever get to see the entire landmark report is the same way we've learned everything we know about it: if someone leaks it."

The truth about CIA torture is misleading. (photo: Getty Images)
The truth about CIA torture is misleading. (photo: Getty Images)


Leak the CIA Report: It's the Only Way to Know the Whole Truth About Torture

By Trevor Timm, Guardian UK

05 April 14

 

Unless, of course, you think spies redacting 6,300 pages of their own sins is transparency. Look how much leaks told us this week

n a seemingly rare win for transparency, headlines blared on Thursday that the Senate Intelligence Committee had voted to declassify key findings of its massive report on CIA torture. Unfortunately, most news articles waited until the final two paragraphs to mention the real news: the public won't see any of the document for months at minimum, and more than 90% of the investigation – characterized as "the Pentagon Papers of the CIA torture program" – will remain secret indefinitely.

In reality, only the executive summary and its conclusions – 480 out of some 6,300 pages – were even included in the vote, and they're nowhere close to being published: it now heads to the White House for "declassification review", an arduous process that will involve multiple government agencies taking a black marker to the documents, including the CIA, the same agency accused in the report of systematically torturing prisoners and lying about it for years. The spy report's subjects and suspects will now become its censors.

It's possible the only way the public will ever get to see the entire landmark report is the same way we've learned everything we know about it: if someone leaks it.

Leaks have been critical to the public knowledge of Bush-era torture since the first hints of Abu Ghraib, and as longtime torture investigator Katherine Hawkins noted, "The Senate report would likely never have existed ... if it were not for previous investigations by journalists and non-governmental organizations."

As with many of Edward Snowden's NSA revelations, those who study the issues have known many of the horrid details for years, but often times only when the general public sees government misdeeds – in the government's own words – do we get anywhere close to real accountability.

Despite its inherent secrecy, the contours of the CIA report's findings have slowly become public, thanks to a steady flow of leaks already coming from various government officials in the past seven days.

The Associated Press disclosed on Sunday that the report concludes torture "provided no key evidence in the hunt for Osama bin Laden", despite statements to the contrary from former government officials like Dick Cheney.

The Washington Post published some more details on Monday, including that the CIA used FBI intelligence gained through humane interrogation – then laundered it through the torture program to justify torturing even more – and that officials continued to order torture on prisoners after they had no more information to give.

The next day, McClatchy reported that the investigation includes the horrid details of at least five suspects to die in CIA custody, including "the death of Gul Rahman, an Afghan who was shackled, doused with cold water and left in a cold cell partially clothed until he died of hypothermia", and "Manadal al Jamadi, who reportedly died after he was hung in a crucifixion-like pose and his head had been covered with a plastic bag."

Sadly, it's possible we may not have gotten to this week's big vote at all if it wasn't for a bureaucratic war of leaks that made its way from the halls of Langley all the way to the theater of the Senate floor. A month ago, McClatchy first revealed that the Senate Intelligence Committee suspected the CIA of spying on the computers it used to conduct its investigation. The CIA countered with leaks of its own, claiming that Senate staffers somehow breached a computer firewall to steal documents they shouldn't have. All that led Sen Dianne Feinstein – normally the intelligence community's most ardent defender – to give a blistering speech that excoriated the CIA for spying on its overseers then lying about it afterward.

The US government insists leaking is a crime, even insinuating it's a form of treason. But CIA brass have always egregiously capitalized on leaks to the media more than anyone, while hypocritically clamping down on anyone who leaked information that didn’t fit its narrative.

Minutes after the intel committee's vote became final on Thursday afternoon, McClatchy posted a more detailed account of the report's 20 findings, including that the CIA repeatedly leaked classified information over the years to the media to manipulate the public's view on torture. This seems to echo what Nancy Pelosi said last month: "You don't fight [the CIA] without a price, because they come after you, and they don't always tell the truth about it."

Nothing sums up their deplorable attitude better than another episode flying under the radar this week: former CIA director Leon Panetta indisputably leaked classified information to the Zero Dark Thirty filmmakers, however, only the people who may have leaked the information that Panetta leaked information are under investigation – and now the intelligence agency's internal whistleblower advocate may lose his security clearances.

As Marcy Wheeler has noted, torture advocates are allowed a free hand to go on book tours, exposing the greatness of torture, while torture critics like former FBI agent Ali Soufan are usually muzzled, or worse. Of course, no government official has ever been prosecuted for torture, but former CIA officer John Kiriakou is in jail for speaking to the press about it.

Still, the larger question remains: will the White House live up to its word and tell us the truth about torture?

President Obama has stated he wants the findings declassified in an expedient manner, but he quickly defended the CIA when it was accused of spying on the Senate, and as McClatchy reported, "the White House has been more involved than publicly acknowledged … For five years, the White House has been withholding more than 9,000 top-secret documents sought by the committee for its investigation, even though Obama hasn’t exercised a claim of executive privilege."

"The CIA will carry out the review expeditiously," said CIA director John Brennan, a man allegedly complicit in the torture regime as a Bush administration official, who multiple Senate Intelligence Committee members have accused of dragging his feet and misleading the Committee about the report.

Those with access to the report have several options to make it public, even if the CIA redacts the documents. The Senate can still release the full summary afterward, as the Justice Department admitted in court documents. A Senator can use the Constitution's Speech and Debate clause to read the full, classified report into the record, as Sen Mike Gravel did with the Pentagon Papers in 1971. And journalist Jason Leopold has filed a Freedom of Information Act suit against the Justice Department for the copy of the report in their possession, which could further compel its release if the government complies.

But all of those scenarios are farfetched. Parts of the report are now in the hands of Senate staffers, White House officials, State Department employees, CIA spooks and soon maybe more. It would not come without great personal risk, but the American people may only be served well if someone with a conscience is brave enough to leak the full report and hold the CIA accountable for its crimes once and for all.

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Confront the Narcissistic Nabobs Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=18758"><span class="small">Jim Hightower, AlterNet</span></a>   
Saturday, 05 April 2014 14:26

Hightower writes: "The powerhouses of Wall Street have tunneled directly into the cloistered backrooms of Washington deal making, extracting trillions of dollars worth of government bailouts, special tax breaks and regulatory favors every year."

Texas' progressive political curmudgeon, Jim Hightower. (photo: JimHightower.com)
Texas' progressive political curmudgeon, Jim Hightower. (photo: JimHightower.com)


Confront the Narcissistic Nabobs

By Jim Hightower, AlterNet

05 April 14

 

"We must create a politics that directly confronts the narcissistic nabobs who're knocking down our people and our country."

he powerhouses of Wall Street have tunneled directly into the cloistered backrooms of Washington deal making, extracting trillions of dollars worth of government bailouts, special tax breaks and regulatory favors every year. Yet, in a stupefying act of hypocrisy, they have also been the major force pushing policymakers to embrace extreme laissez-faire bunkum and to inflict the most austere budgetary minginess on the American people.

Through their lobbyists, front groups, economic shills, media hacks and the politicians they've purchased, these pampered princes of high finance have gained a stranglehold on policy, choking off the public investment that our country desperately needs. In a nonstop drone, their operatives chant: "America is broke. Fiscal doom looms. Government spending is the cause. Austerity policies are our only hope."

And Washington is buying this snake oil. As we've seen, food stamp funding was stripped from the farm bill; benefits for the long-term unemployed were allowed to expire; job training programs are being cut and Republicans are frantically trying to derail and defund Obamacare to keep millions of uninsured Americans from getting health coverage.

Seeing all of this, George Will, the GOP's high priest of the plutocratic order, is exultant. In an October Fox News appearance, he declared victory for the laissez-fairyites, noting that they have taken control of Washington's conversation on public spending: "We are now talking entirely on Republican terms, in Republican vocabulary. No taxes, how much is the spending going to be cut? The federal workforce is being cut."

No doubt the debate in Will's tiny circle is focused entirely on shrinking America into its dark vision of parsimonious plutocracy. But I find that most people, living way outside George's bubble of elites, have a far bigger vision of what America can be, and they're engaged in a less constipated conversation about ways to meet our country's budgetary needs.

If you review opinion polls, hear the results of door-to-door outreach campaigns, or just have a few real conversations at various chat-and-chew cafes, you'll tap into ordinary people's simmering anger at the Wall Street/Washington axis that's dictating a harsh normal of economic inequality, declining opportunity and diminished democratic control. The elites are constantly monkey-wrenching the public's ability to act together, thus limiting our nation's possibilities and causing America's present drift from world leader to mediocrity.

This undermining of the workaday Americans goes against the very essence of America, from our egalitarian ideals to our can-do spirit. We must create a politics that directly confronts the narcissistic nabobs who're knocking down our people and our country -- and rally an increasingly restive workaday majority to come together in an expansive, aggressive effort to Re-fund America. For example:

  1. -- As the richest country in the history of the world, the USA ought to have the TOP public education system, not one of the worst among wealthy nations.
  2. -- Forget dismantling Obamacare. Improve it to Medicare-for-all.
  3. -- Let's re-establish our technological supremacy, from building the green economy of the future to reaching boldly again into outer space.
  4. -- Our priceless system of public parks should be flourishing and expanding, not firing park rangers and locking entry gates.
  5. -- Rather than succumbing to a bleak future of low-wage, part-time, temporary, no-security jobs, let's publicly invest in full employment, world-class skills and technology that works for workers.
  6. -- Restore democratic power with public financing of all election campaigns, enact labor law reforms so workers themselves can democratize the workplace and encourage the development of co-ops as an alternative to corporate control of the economy.

That's an America that is worthy of ALL of us -- a society of historic democratic vision, genuine opportunity for all and a shared prosperity. Most people would feel good about bringing children into that world. That's the America we should strive to be.

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