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FOCUS: Tricks, Traps and Accountability Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=7122"><span class="small">Elizabeth Warren, Reader Supported News</span></a>   
Tuesday, 24 July 2012 11:47

Warren writes: "Markets work when people can evaluate the prices and risks of different products, then pick the ones that work best for them. But when the terms of the deal are hidden, competition doesn't work."

Elizabeth Warren speaks to reporters during a news conference, 05/02/12. (photo: Steven Senne/AP)
Elizabeth Warren speaks to reporters during a news conference, 05/02/12. (photo: Steven Senne/AP)



Tricks, Traps and Accountability

By Elizabeth Warren, Reader Supported News

24 July 12

 

s we mark the one year anniversary of the Consumer Financial Protection Bureau (CFPB), I've been thinking about how for years leading up to the 2008 financial crisis, I asked students in my contract law class to read a credit card agreement - either an offer that they'd received in the mail or the actual agreement they'd signed onto - and answer some basic questions. Some were easy: When is your bill is due? Do you get points? The students always answered those.

The next questions went to the heart of the deal: Does your credit card have an arbitration clause, preventing you from suing in court if the company cheats you? No one knew. How long it would take you to pay off a $1000 purchase with interest if you paid the minimum monthly payment? They didn't know. And when I assigned that basic question as homework, almost all of them spent hours knee deep in fine print without finding an answer.

Markets work when people can evaluate the prices and risks of different products, then pick the ones that work best for them. But when the terms of the deal are hidden, competition doesn't work. And customers aren't the only ones who are hurt. If a small bank with a limited advertising budget offered a better card, no one could figure that out and switch. That had been the state of the consumer credit market for years.

Following deregulation in the 1980s, a number of big banks figured out that they could build a very profitable business based on deception - tricks and traps buried in fine print, teaser rates that hid the true costs of mortgages, and obscure terms (like double-cycle billing) than no one understood. They sold a lot of mortgages, credit cards and other loans, sometimes deliberately targeting people they knew wouldn't be able to pay in order to rake big fees off the top before they sold the loans to someone else.

Eventually the lousy mortgages crashed the economy. Families that already had been squeezed for a generation got hit from every direction. Their pensions and savings were wiped out, their friends and family members lost their jobs, and the values of their homes plummeted.

After the crash, it was clear that restoring a working consumer credit market was among the most urgent challenges. The broken consumer credit market had to be repaired by making sure that consumers had the right information and could use it effectively. That meant consolidating the bloated patchwork of ineffective agencies and regulations so that a single agency could act as a voice for consumers. It also meant leveling the playing field so that small banks and credit unions could compete for a customer's business against big banks and unlicensed lenders.

The new CFPB was designed to level the playing field for small players - families, students, seniors, community banks, credit unions, small businesses. It aimed to cut complexity out of the system, mowing down the fine print that hid bad surprises, using easy-to-read forms, and getting rid of tricky language. It aimed to let people make apples-to-apples comparisons when shopping for financial products, so people could evaluate three mortgages head-to-head or the terms of three student loan offers. The new agency was also designed to be a cop on the beat to make sure that even the biggest banks follow the law.

Not surprisingly, the Wall Street banks fought against the consumer agency, but it was passed into law because more than 200 groups and countless people came together to create real reform.

Now, one year later, the CFPB is already moving toward clearer prices and risks so consumers have the information to make good choices - with a new student financial aid shopping sheet, the prototype of a shorter credit card agreement, and rapid progress toward a new, simpler mortgage disclosure form.

The CFPB is also already helping military servicemembers better navigate the financial challenges of multiple moves and deployments and passing on targeted information to protect seniors, students, and young families about their financial options. For those who have had disputes with lenders, the CFPB's Consumer Response Center is helping to get those problems solved. The agency has hired examiners to supervise the largest banks for compliance with the law and established procedures for overseeing previously unregulated mortgage servicers and payday lenders.

And just this week, the CFPB announced that its first public enforcement action will require Capital One to refund two million consumers a total of $140 million, in addition to paying a $25 million penalty, as a result of the company's deceptive and misleading practices on credit cards.

Progress is unmistakable, but the fight over CFPB's existence continues. The big banks, their lobbyists, their friends in Congress, and even Mitt Romney have pushed for repeal of the new agency. Despite the pressure, the new agency stays focused on its mission, helping make sure that everyone - no matter how big - has to follow the same rules.

A working market needs rules, and the CFPB is starting to level the playing field. That's a good thing for consumers - and it didn't come a moment too soon.

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Could Bachmann Cost Romney the Presidency? Print
Monday, 23 July 2012 15:27

Cole writes: "Michele Bachmann is flailing around accusing all the US government officials of Muslim heritage of being connected to the Muslim Brotherhood. Bachmann's bizarre behavior is alarming the Republican establishment."

Michele Bachmann announces the end of her presidential campaign, 01/04/12. (photo: Reuters)
Michele Bachmann announces the end of her presidential campaign, 01/04/12. (photo: Reuters)



Could Bachmann Cost Romney the Presidency?

By Juan Cole, Informed Comment

23 July 12

 

ichele Bachmann is flailing around accusing all the US government officials of Muslim heritage of being connected to the Muslim Brotherhood (which in turn she misunderstands as a radical group). Not only did she attack the aide to Hillary Clinton, Huma Abedin, but when Rep. Keith Ellison complained about her McCarthyite campaign, she launched the same accusation at him (Ellison is one of two Muslims in the Congress).

Bachmann's bizarre behavior (there, I've been redundant) is alarming the Republican establishment. Even right wing poobah Mike Rogers (R-Michigan), head of the House intelligence committee, after initially supporting her, has backed away from Bachmann's nuttiness, at least on this issue.

Given her own strong ties to the Iranian terrorist organization, the Mojahedin-e Khalq (MEK or People's Holy Jihadis), Bachmann is in a weak position to accuse other people. The MEK was involved in taking US diplomats hostage, and then in the 1990s allied with Saddam Hussein. In fact, her colleagues in Congress should investigate if she has taken money from the MEK, or has given them material assistance. She is, I've argued much closer to the Muslim Brotherhood than the people she is accusing. It is extremely scary that this woman is on the House Intelligency Committee. She would even be in a position to share US intelligence with MEK terrorists.

Establishment Republicans are increasingly dissociating themselves from her just because they don't want to be tarred by her brush. And, in general, you don't want the Republican brand being dominated by Bachmann in an election year. But there is another consideration that may have them running from her.

Just as Arizona governor Jan Brewer's campaign against Latinos has helped deprive GOP presidential candidate Mitt Romney of support in that community, Bachmann's targeting of Muslim-Americans and, implicitly, Arab-Americans, could hurt Romney in those communities.

One of Romney's strategies for winning enough votes in the electoral college to become president is to target the big Midwestern states of Michigan, Ohio, and Pennsylvania. Those three all have significant Arab-American and Muslim-American communities. The Arab-Americans in Michigan are often considered a swing vote, since the state is pretty evenly divided otherwise. They had tended to vote Republican in the 1990s, but George W. Bush's wars in the Middle East and his alliance with the worst elements in the evangelical community and the right wing of the Israel lobby drove them into the arms of the Democrats. See this VOA report on how Arab-Americans (who include both Muslims and Christians) are trending Democrat.

The Midwestern states could be close, and even small communities could turn the election to one side or another. Remember how Florida in 2000 hung on just a few hundred votes. Well, there are over 250,000 Arab-Americans in Florida. Probably at least half of them are Christians, but they can all tell when someone is prejudiced against their culture.

Florida has over 250,000 Arab-Americans now - enough to be a swing vote given how close Florida elections are:

Muslim-Americans also have significant communities all through the swing states:

Everyone knows that Bachmann is a Republican and former primary candidate for the presidential nomination on that party ticket. Her antics may impress people in Anoka, MN (though how, I can't imagine). But the Muslim-American and Arab-American voters are unlikely to be amused.


Graphics courtesy Arab-American Institute and Informed Comment.

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FOCUS: The Absolute State and the Star Chamber Are Back Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=20054"><span class="small">Noam Chomsky, Informed Comment</span></a>   
Monday, 23 July 2012 11:53

Chomsky writes: "Down the road only a few generations, the millennium of Magna Carta ... will arrive. Whether it will be celebrated, mourned, or ignored is not at all clear."

Author, historian and political commentator Noam Chomsky. (photo: Ben Rusk/flickr)
Author, historian and political commentator Noam Chomsky. (photo: Ben Rusk/flickr)



The Absolute State and the Star Chamber Are Back

By Noam Chomsky, Informed Comment

23 July 12

 

own the road only a few generations, the millennium of Magna Carta, one of the great events in the establishment of civil and human rights, will arrive. Whether it will be celebrated, mourned, or ignored is not at all clear.

That should be a matter of serious immediate concern. What we do right now, or fail to do, will determine what kind of world will greet that event. It is not an attractive prospect if present tendencies persist - not least, because the Great Charter is being shredded before our eyes.

The first scholarly edition of Magna Carta was published by the eminent jurist William Blackstone. It was not an easy task. There was no good text available. As he wrote, "the body of the charter has been unfortunately gnawn by rats" - a comment that carries grim symbolism today, as we take up the task the rats left unfinished.

Blackstone's edition actually includes two charters. It was entitled The Great Charter and the Charter of the Forest. The first, the Charter of Liberties, is widely recognized to be the foundation of the fundamental rights of the English-speaking peoples - or as Winston Churchill put it more expansively, "the charter of every self-respecting man at any time in any land." Churchill was referring specifically to the reaffirmation of the Charter by Parliament in the Petition of Right, imploring King Charles to recognize that the law is sovereign, not the King. Charles agreed briefly, but soon violated his pledge, setting the stage for the murderous Civil War.

After a bitter conflict between King and Parliament, the power of royalty in the person of Charles II was restored. In defeat, Magna Carta was not forgotten. One of the leaders of Parliament, Henry Vane, was beheaded. On the scaffold, he tried to read a speech denouncing the sentence as a violation of Magna Carta, but was drowned out by trumpets to ensure that such scandalous words would not be heard by the cheering crowds. His major crime had been to draft a petition calling the people "the original of all just power" in civil society - not the King, not even God. That was the position that had been strongly advocated by Roger Williams, the founder of the first free society in what is now the state of Rhode Island. His heretical views influenced Milton and Locke, though Williams went much farther, founding the modern doctrine of separation of church and state, still much contested even in the liberal democracies.

As often is the case, apparent defeat nevertheless carried the struggle for freedom and rights forward. Shortly after Vane's execution, King Charles granted a Royal Charter to the Rhode Island plantations, declaring that "the form of government is Democratical," and furthermore that the government could affirm freedom of conscience for Papists, atheists, Jews, Turks - even Quakers, one of the most feared and brutalized of the many sects that were appearing in those turbulent days. All of this was astonishing in the climate of the times.

A few years later, the Charter of Liberties was enriched by the Habeas Corpus Act of 1679, formally entitled "an Act for the better securing the liberty of the subject, and for prevention of imprisonment beyond the seas." The U.S. Constitution, borrowing from English common law, affirms that "the writ of habeas corpus shall not be suspended" except in case of rebellion or invasion. In a unanimous decision, the U.S. Supreme Court held that the rights guaranteed by this Act were "[c]onsidered by the Founders [of the American Republic] as the highest safeguard of liberty." All of these words should resonate today.

The Second Charter and the Commons

The significance of the companion charter, the Charter of the Forest, is no less profound and perhaps even more pertinent today - as explored in depth by Peter Linebaugh in his richly documented and stimulating history of Magna Carta and its later trajectory. The Charter of the Forest demanded protection of the commons from external power. The commons were the source of sustenance for the general population: their fuel, their food, their construction materials, whatever was essential for life. The forest was no primitive wilderness. It had been carefully developed over generations, maintained in common, its riches available to all, and preserved for future generations - practices found today primarily in traditional societies that are under threat throughout the world.

The Charter of the Forest imposed limits to privatization. The Robin Hood myths capture the essence of its concerns (and it is not too surprising that the popular TV series of the 1950s, "The Adventures of Robin Hood," was written anonymously by Hollywood screenwriters blacklisted for leftist convictions). By the seventeenth century, however, this Charter had fallen victim to the rise of the commodity economy and capitalist practice and morality.

With the commons no longer protected for cooperative nurturing and use, the rights of the common people were restricted to what could not be privatized, a category that continues to shrink to virtual invisibility. In Bolivia, the attempt to privatize water was, in the end, beaten back by an uprising that brought the indigenous majority to power for the first time in history. The World Bank has just ruled that the mining multinational Pacific Rim can proceed with a case against El Salvador for trying to preserve lands and communities from highly destructive gold mining. Environmental constraints threaten to deprive the company of future profits, a crime that can be punished under the rules of the investor-rights regime mislabeled as "free trade." And this is only a tiny sample of struggles underway over much of the world, some involving extreme violence, as in the Eastern Congo, where millions have been killed in recent years to ensure an ample supply of minerals for cell phones and other uses, and of course ample profits.

The rise of capitalist practice and morality brought with it a radical revision of how the commons are treated, and also of how they are conceived. The prevailing view today is captured by Garrett Hardin's influential argument that "freedom in a commons brings ruin to us all," the famous "tragedy of the commons": what is not owned will be destroyed by individual avarice.

An international counterpart was the concept of terra nullius, employed to justify the expulsion of indigenous populations in the settler-colonial societies of the Anglosphere, or their "extermination," as the founding fathers of the American Republic described what they were doing, sometimes with remorse, after the fact. According to this useful doctrine, the Indians had no property rights since they were just wanderers in an untamed wilderness. And the hard-working colonists could create value where there was none by turning that same wilderness to commercial use.

In reality, the colonists knew better and there were elaborate procedures of purchase and ratification by crown and parliament, later annulled by force when the evil creatures resisted extermination. The doctrine is often attributed to John Locke, but that is dubious. As a colonial administrator, he understood what was happening, and there is no basis for the attribution in his writings, as contemporary scholarship has shown convincingly, notably the work of the Australian scholar Paul Corcoran. (It was in Australia, in fact, that the doctrine has been most brutally employed.)

The grim forecasts of the tragedy of the commons are not without challenge. The late Elinor Olstrom won the Nobel Prize in economics in 2009 for her work showing the superiority of user-managed fish stocks, pastures, woods, lakes, and groundwater basins. But the conventional doctrine has force if we accept its unstated premise: that humans are blindly driven by what American workers, at the dawn of the industrial revolution, bitterly called "the New Spirit of the Age, Gain Wealth forgetting all but Self."

Like peasants and workers in England before them, American workers denounced this New Spirit, which was being imposed upon them, regarding it as demeaning and destructive, an assault on the very nature of free men and women. And I stress women; among those most active and vocal in condemning the destruction of the rights and dignity of free people by the capitalist industrial system were the "factory girls," young women from the farms. They, too, were driven into the regime of supervised and controlled wage labor, which was regarded at the time as different from chattel slavery only in that it was temporary. That stand was considered so natural that it became a slogan of the Republican Party, and a banner under which northern workers carried arms during the American Civil War.

Controlling the Desire for Democracy

That was 150 years ago - in England earlier. Huge efforts have been devoted since to inculcating the New Spirit of the Age. Major industries are devoted to the task: public relations, advertising, marketing generally, all of which add up to a very large component of the Gross Domestic Product. They are dedicated to what the great political economist Thorstein Veblen called "fabricating wants." In the words of business leaders themselves, the task is to direct people to "the superficial things" of life, like "fashionable consumption." That way people can be atomized, separated from one another, seeking personal gain alone, diverted from dangerous efforts to think for themselves and challenge authority.

The process of shaping opinion, attitudes, and perceptions was termed the "engineering of consent" by one of the founders of the modern public relations industry, Edward Bernays. He was a respected Wilson-Roosevelt-Kennedy progressive, much like his contemporary, journalist Walter Lippmann, the most prominent public intellectual of twentieth century America, who praised "the manufacture of consent" as a "new art" in the practice of democracy.

Both recognized that the public must be "put in its place," marginalized and controlled - for their own interests of course. They were too "stupid and ignorant" to be allowed to run their own affairs. That task was to be left to the "intelligent minority," who must be protected from "the trampling and the roar of [the] bewildered herd," the "ignorant and meddlesome outsiders" - the "rascal multitude" as they were termed by their seventeenth century predecessors. The role of the general population was to be "spectators," not "participants in action," in a properly functioning democratic society.

And the spectators must not be allowed to see too much. President Obama has set new standards in safeguarding this principle. He has, in fact, punished more whistleblowers than all previous presidents combined, a real achievement for an administration that came to office promising transparency. WikiLeaks is only the most famous case, with British cooperation.

Among the many topics that are not the business of the bewildered herd is foreign affairs. Anyone who has studied declassified secret documents will have discovered that, to a large extent, their classification was meant to protect public officials from public scrutiny. Domestically, the rabble should not hear the advice given by the courts to major corporations: that they should devote some highly visible efforts to good works, so that an "aroused public" will not discover the enormous benefits provided to them by the nanny state. More generally the U.S. public should not learn that "state policies are overwhelmingly regressive, thus reinforcing and expanding social inequality," though designed in ways that lead "people to think that the government helps only the undeserving poor, allowing politicians to mobilize and exploit anti-government rhetoric and values even as they continue to funnel support to their better-off constituents" - I'm quoting from the main establishment journal, Foreign Affairs, not from some radical rag.

Over time, as societies became freer and the resort to state violence more constrained, the urge to devise sophisticated methods of control of attitudes and opinion has only grown. It is natural that the immense PR industry should have been created in the most free of societies, the United States and Great Britain. The first modern propaganda agency was the British Ministry of Information a century ago, which secretly defined its task as "to direct the thought of most of the world" - primarily progressive American intellectuals, who had to be mobilized to come to the aid of Britain during World War I.

Its U.S. counterpart, the Committee on Public Information, was formed by Woodrow Wilson to drive a pacifist population to violent hatred of all things German - with remarkable success. American commercial advertising deeply impressed others. Goebbels admired it and adapted it to Nazi propaganda, all too successfully. The Bolshevik leaders tried as well, but their efforts were clumsy and ineffective.

A primary domestic task has always been "to keep [the public] from our throats," as essayist Ralph Waldo Emerson described the concerns of political leaders when the threat of democracy was becoming harder to suppress in the mid-nineteenth century. More recently, the activism of the 1960s elicited elite concerns about "excessive democracy," and calls for measures to impose "more moderation" in democracy.

One particular concern was to introduce better controls over the institutions "responsible for the indoctrination of the young": the schools, the universities, the churches, which were seen as failing that essential task. I'm quoting reactions from the left-liberal end of the mainstream spectrum, the liberal internationalists who later staffed the Carter administration, and their counterparts in other industrial societies. The right wing was much harsher. One of many manifestations of this urge has been the sharp rise in college tuition, not on economic grounds, as is easily shown. The device does, however, trap and control young people by debt, often for the rest of their lives, thus contributing to more effective indoctrination.

The Three-Fifths People

Pursuing these important topics further, we see that the destruction of the Charter of the Forest, and its obliteration from memory, relates rather closely to the continuing efforts to constrain the promise of the Charter of Liberties. The "New Spirit of the Age" cannot tolerate the pre-capitalist conception of the Forest as the shared endowment of the community at large, cared for communally for its own use and for future generations, protected from privatization, from transfer to the hands of private power for service to wealth, not needs. Inculcating the New Spirit is an essential prerequisite for achieving this end, and for preventing the Charter of Liberties from being misused to enable free citizens to determine their own fate.

Popular struggles to bring about a freer and more just society have been resisted by violence and repression, and massive efforts to control opinion and attitudes. Over time, however, they have met with considerable success, even though there is a long way to go and there is often regression. Right now, in fact.

The most famous part of the Charter of Liberties is Article 39, which declares that "no free man" shall be punished in any way, "nor will We proceed against or prosecute him, except by the lawful judgment of his peers and by the law of the land."

Through many years of struggle, the principle has come to hold more broadly. The U.S. Constitution provides that no "person [shall] be deprived of life, liberty, or property, without due process of law [and] a speedy and public trial" by peers. The basic principle is "presumption of innocence" - what legal historians describe as "the seed of contemporary Anglo-American freedom," referring to Article 39; and with the Nuremberg Tribunal in mind, a "particularly American brand of legalism: punishment only for those who could be proved to be guilty through a fair trial with a panoply of procedural protections" - even if their guilt for some of the worst crimes in history is not in doubt.

The founders of course did not intend the term "person" to apply to all persons. Native Americans were not persons. Their rights were virtually nil. Women were scarcely persons. Wives were understood to be "covered" under the civil identity of their husbands in much the same way as children were subject to their parents. Blackstone's principles held that "the very being or legal existence of the woman is suspended during the marriage, or at least is incorporated and consolidated into that of the husband: under whose wing, protection, and cover, she performs every thing." Women are thus the property of their fathers or husbands. These principles remain up to very recent years. Until a Supreme Court decision of 1975, women did not even have a legal right to serve on juries. They were not peers. Just two weeks ago, Republican opposition blocked the Fairness Paycheck Act guaranteeing women equal pay for equal work. And it goes far beyond.

Slaves, of course, were not persons. They were in fact three-fifths human under the Constitution, so as to grant their owners greater voting power. Protection of slavery was no slight concern to the founders: it was one factor leading to the American revolution. In the 1772 Somerset case, Lord Mansfield determined that slavery is so "odious" that it cannot be tolerated in England, though it continued in British possessions for many years. American slave-owners could see the handwriting on the wall if the colonies remained under British rule. And it should be recalled that the slave states, including Virginia, had the greatest power and influence in the colonies. One can easily appreciate Dr. Johnson's famous quip that "we hear the loudest yelps for liberty among the drivers of negroes."

Post-Civil War amendments extended the concept person to African-Americans, ending slavery. In theory, at least. After about a decade of relative freedom, a condition akin to slavery was reintroduced by a North-South compact permitting the effective criminalization of black life. A black male standing on a street corner could be arrested for vagrancy, or for attempted rape if accused of looking at a white woman the wrong way. And once imprisoned he had few chances of ever escaping the system of "slavery by another name," the term used by then-Wall Street Journal bureau chief Douglas Blackmon in an arresting study.

This new version of the "peculiar institution" provided much of the basis for the American industrial revolution, with a perfect work force for the steel industry and mining, along with agricultural production in the famous chain gangs: docile, obedient, no strikes, and no need for employers even to sustain their workers, an improvement over slavery. The system lasted in large measure until World War II, when free labor was needed for war production.

The postwar boom offered employment. A black man could get a job in a unionized auto plant, earn a decent salary, buy a house, and maybe send his children to college. That lasted for about 20 years, until the 1970s, when the economy was radically redesigned on newly dominant neoliberal principles, with rapid growth of financialization and the offshoring of production. The black population, now largely superfluous, has been recriminalized.

Until Ronald Reagan's presidency, incarceration in the U.S. was within the spectrum of industrial societies. By now it is far beyond others. It targets primarily black males, increasingly also black women and Hispanics, largely guilty of victimless crimes under the fraudulent "drug wars." Meanwhile, the wealth of African-American families has been virtually obliterated by the latest financial crisis, in no small measure thanks to criminal behavior of financial institutions, with impunity for the perpetrators, now richer than ever.

Looking over the history of African-Americans from the first arrival of slaves almost 500 years ago to the present, they have enjoyed the status of authentic persons for only a few decades. There is a long way to go to realize the promise of Magna Carta.

Sacred Persons and Undone Process

The post-Civil War fourteenth amendment granted the rights of persons to former slaves, though mostly in theory. At the same time, it created a new category of persons with rights: corporations. In fact, almost all the cases brought to the courts under the fourteenth amendment had to do with corporate rights, and by a century ago, they had determined that these collectivist legal fictions, established and sustained by state power, had the full rights of persons of flesh and blood; in fact, far greater rights, thanks to their scale, immortality, and protections of limited liability. Their rights by now far transcend those of mere humans. Under the "free trade agreements," Pacific Rim can, for example, sue El Salvador for seeking to protect the environment; individuals cannot do the same. General Motors can claim national rights in Mexico. There is no need to dwell on what would happen if a Mexican demanded national rights in the United States.

Domestically, recent Supreme Court rulings greatly enhance the already enormous political power of corporations and the super-rich, striking further blows against the tottering relics of functioning political democracy.

Meanwhile Magna Carta is under more direct assault. Recall the Habeas Corpus Act of 1679, which barred "imprisonment beyond the seas," and certainly the far more vicious procedure of imprisonment abroad for the purpose of torture - what is now more politely called "rendition," as when Tony Blair rendered Libyan dissident Abdel Hakim Belhaj, now a leader of the rebellion, to the mercies of Qaddafi; or when U.S. authorities deported Canadian citizen Maher Arar to his native Syria, for imprisonment and torture, only later conceding that there was never any case against him. And many others, often through Shannon Airport, leading to courageous protests in Ireland.

The concept of due process has been extended under the Obama administration's international assassination campaign in a way that renders this core element of the Charter of Liberties (and the Constitution) null and void. The Justice Department explained that the constitutional guarantee of due process, tracing to Magna Carta, is now satisfied by internal deliberations in the executive branch alone. The constitutional lawyer in the White House agreed. King John might have nodded with satisfaction.

The issue arose after the presidentially ordered assassination-by-drone of Anwar al-Awlaki, accused of inciting jihad in speech, writing, and unspecified actions. A headline in the New York Times captured the general elite reaction when he was murdered in a drone attack, along with the usual collateral damage. It read: "The West celebrates a cleric's death." Some eyebrows were lifted, however, because he was an American citizen, which raised questions about due process - considered irrelevant when non-citizens are murdered at the whim of the chief executive. And irrelevant for citizens, too, under Obama administration due-process legal innovations.

Presumption of innocence has also been given a new and useful interpretation. As the New York Times reported, "Mr. Obama embraced a disputed method for counting civilian casualties that did little to box him in. It in effect counts all military-age males in a strike zone as combatants, according to several administration officials, unless there is explicit intelligence posthumously proving them innocent." So post-assassination determination of innocence maintains the sacred principle of presumption of innocence.

It would be ungracious to recall the Geneva Conventions, the foundation of modern humanitarian law: they bar "the carrying out of executions without previous judgment pronounced by a regularly constituted court, affording all the judicial guarantees which are recognized as indispensable by civilized peoples."

The most famous recent case of executive assassination was Osama bin Laden, murdered after he was apprehended by 79 Navy seals, defenseless, accompanied only by his wife, his body reportedly dumped at sea without autopsy. Whatever one thinks of him, he was a suspect and nothing more than that. Even the FBI agreed.

Celebration in this case was overwhelming, but there were a few questions raised about the bland rejection of the principle of presumption of innocence, particularly when trial was hardly impossible. These were met with harsh condemnations. The most interesting was by a respected left-liberal political commentator, Matthew Yglesias, who explained that "one of the main functions of the international institutional order is precisely to legitimate the use of deadly military force by western powers," so it is "amazingly naïve" to suggest that the U.S. should obey international law or other conditions that we righteously demand of the weak.

Only tactical objections can be raised to aggression, assassination, cyberwar, or other actions that the Holy State undertakes in the service of mankind. If the traditional victims see matters somewhat differently, that merely reveals their moral and intellectual backwardness. And the occasional Western critic who fails to comprehend these fundamental truths can be dismissed as "silly," Yglesias explains - incidentally, referring specifically to me, and I cheerfully confess my guilt.

Executive Terrorist Lists

Perhaps the most striking assault on the foundations of traditional liberties is a little-known case brought to the Supreme Court by the Obama administration, Holder v. Humanitarian Law Project. The Project was condemned for providing "material assistance" to the guerrilla organization PKK, which has fought for Kurdish rights in Turkey for many years and is listed as a terrorist group by the state executive. The "material assistance" was legal advice. The wording of the ruling would appear to apply quite broadly, for example, to discussions and research inquiry, even advice to the PKK to keep to nonviolent means. Again, there was a marginal fringe of criticism, but even those accepted the legitimacy of the state terrorist list - arbitrary decisions by the executive, with no recourse.

The record of the terrorist list is of some interest. For example, in 1988 the Reagan administration declared Nelson Mandela's African National Congress to be one of the world's "more notorious terrorist groups," so that Reagan could continue his support for the Apartheid regime and its murderous depredations in South Africa and in neighboring countries, as part of his "war on terror." Twenty years later Mandela was finally removed from the terrorist list, and can now travel to the U.S. without a special waiver.

Another interesting case is Saddam Hussein, removed from the terrorist list in 1982 so that the Reagan administration could provide him with support for his invasion of Iran. The support continued well after the war ended. In 1989, President Bush I even invited Iraqi nuclear engineers to the U.S. for advanced training in weapons production - more information that must be kept from the eyes of the "ignorant and meddlesome outsiders."

One of the ugliest examples of the use of the terrorist list has to do with the tortured people of Somalia. Immediately after September 11th, the United States closed down the Somali charitable network Al-Barakaat on grounds that it was financing terror. This achievement was hailed one of the great successes of the "war on terror." In contrast, Washington's withdrawal of its charges as without merit a year later aroused little notice.

Al-Barakaat was responsible for about half the $500 million in remittances to Somalia, "more than it earns from any other economic sector and 10 times the amount of foreign aid [Somalia] receives" a U.N. review determined. The charity also ran major businesses in Somalia, all destroyed. The leading academic scholar of Bush's "financial war on terror," Ibrahim Warde, concludes that apart from devastating the economy, this frivolous attack on a very fragile society "may have played a role in the rise… of Islamic fundamentalists," another familiar consequence of the "war on terror."

The very idea that the state should have the authority to make such judgments is a serious offense against the Charter of Liberties, as is the fact that it is considered uncontentious. If the Charter's fall from grace continues on the path of the past few years, the future of rights and liberties looks dim.

Who Will Have the Last Laugh?

A few final words on the fate of the Charter of the Forest. Its goal was to protect the source of sustenance for the population, the commons, from external power - in the early days, royalty; over the years, enclosures and other forms of privatization by predatory corporations and the state authorities who cooperate with them, have only accelerated and are properly rewarded. The damage is very broad.

If we listen to voices from the South today we can learn that "the conversion of public goods into private property through the privatization of our otherwise commonly held natural environment is one way neoliberal institutions remove the fragile threads that hold African nations together. Politics today has been reduced to a lucrative venture where one looks out mainly for returns on investment rather than on what one can contribute to rebuild highly degraded environments, communities, and a nation. This is one of the benefits that structural adjustment programmes inflicted on the continent - the enthronement of corruption." I'm quoting Nigerian poet and activist Nnimmo Bassey, chair of Friends of the Earth International, in his searing expose of the ravaging of Africa's wealth, To Cook a Continent, the latest phase of the Western torture of Africa.

Torture that has always been planned at the highest level, it should be recognized. At the end of World War II, the U.S. held a position of unprecedented global power. Not surprisingly, careful and sophisticated plans were developed about how to organize the world. Each region was assigned its "function" by State Department planners, headed by the distinguished diplomat George Kennan. He determined that the U.S. had no special interest in Africa, so it should be handed over to Europe to "exploit" - his word - for its reconstruction. In the light of history, one might have imagined a different relation between Europe and Africa, but there is no indication that that was ever considered.

More recently, the U.S. has recognized that it, too, must join the game of exploiting Africa, along with new entries like China, which is busily at work compiling one of the worst records in destruction of the environment and oppression of the hapless victims.

It should be unnecessary to dwell on the extreme dangers posed by one central element of the predatory obsessions that are producing calamities all over the world: the reliance on fossil fuels, which courts global disaster, perhaps in the not-too-distant future. Details may be debated, but there is little serious doubt that the problems are serious, if not awesome, and that the longer we delay in addressing them, the more awful will be the legacy left to generations to come. There are some efforts to face reality, but they are far too minimal. The recent Rio+20 Conference opened with meager aspirations and derisory outcomes.

Meanwhile, power concentrations are charging in the opposite direction, led by the richest and most powerful country in world history. Congressional Republicans are dismantling the limited environmental protections initiated by Richard Nixon, who would be something of a dangerous radical in today's political scene. The major business lobbies openly announce their propaganda campaigns to convince the public that there is no need for undue concern - with some effect, as polls show.

The media cooperate by not even reporting the increasingly dire forecasts of international agencies and even the U.S. Department of Energy. The standard presentation is a debate between alarmists and skeptics: on one side virtually all qualified scientists, on the other a few holdouts. Not part of the debate are a very large number of experts, including the climate change program at MIT among others, who criticize the scientific consensus because it is too conservative and cautious, arguing that the truth when it comes to climate change is far more dire. Not surprisingly, the public is confused.

In his State of the Union speech in January, President Obama hailed the bright prospects of a century of energy self-sufficiency, thanks to new technologies that permit extraction of hydrocarbons from Canadian tar sands, shale, and other previously inaccessible sources. Others agree. The Financial Times forecasts a century of energy independence for the U.S. The report does mention the destructive local impact of the new methods. Unasked in these optimistic forecasts is the question what kind of a world will survive the rapacious onslaught.

In the lead in confronting the crisis throughout the world are indigenous communities, those who have always upheld the Charter of the Forests. The strongest stand has been taken by the one country they govern, Bolivia, the poorest country in South America and for centuries a victim of western destruction of the rich resources of one of the most advanced of the developed societies in the hemisphere, pre-Columbus.

After the ignominious collapse of the Copenhagen global climate change summit in 2009, Bolivia organized a People's Summit with 35,000 participants from 140 countries - not just representatives of governments, but also civil society and activists. It produced a People's Agreement, which called for very sharp reduction in emissions, and a Universal Declaration on the Rights of Mother Earth. That is a key demand of indigenous communities all over the world. It is ridiculed by sophisticated westerners, but unless we can acquire some of their sensibility, they are likely to have the last laugh - a laugh of grim despair.

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Mitt Romney's New Lie Print
Sunday, 22 July 2012 10:03

Parry writes: "The 'independent fact-checkers' might want to dust off their Pinocchios and pull out their 'truth-o-meters' in reaction to Mitt Romney's latest calculated lie."

Mitt Romney delivers remarks in New Hampshire, 07/20/12. (photo: Getty Images)
Mitt Romney delivers remarks in New Hampshire, 07/20/12. (photo: Getty Images)



Mitt Romney's New Lie

By Robert Parry, Consortium News

22 July 12

 

he "independent fact-checkers" might want to dust off their Pinocchios and pull out their "truth-o-meters" in reaction to Mitt Romney's latest calculated lie, applying deceptive editing to President Barack Obama's remarks about how public infrastructure supports private enterprise.

This is a clear case where Romney and the right-wing media know what they're doing. They clipped Obama's remarks in such a way as to make it seem that the President was saying that business owners didn't build their own businesses, when the comment actually refers to the building of roads and other public investments.

In a talk in Roanoke, Virginia, on July 13, Obama was describing the contributions that the public sector has made toward creating conditions that help businesses succeed:

"Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you've got a business - you didn't build that. Somebody else made that happen. The Internet didn't get invented on its own. Government research created the Internet so that all the companies could make money off the Internet."

Though Obama's syntax is slightly mangled, the context is obvious. Obama is saying that businesses did not build the roads, bridges and the Internet. But the right-wing media quickly lopped off the context. Fox News applied its classic selective editing.

On Tuesday, Romney joined in, telling a rally in Pennsylvania that Obama "said this: ‘If you've got a business, you didn't build that. Somebody else made that happen.'" Romney then extrapolated from this misleading quote that Obama wants Americans to be "ashamed of success" and that Obama is "changing the nature of America."

"I find it extraordinary that a philosophy of that nature would be spoken by a president of the United States," Romney said.

But Obama wasn't saying that someone else built the business; he was saying someone else built "that," i.e. the public infrastructure that businesses use. Given this clear context, Romney and other right-wing figures know exactly what they're doing. They're lying.

Yet, reflecting again how poorly the U.S. news media handles such distortions, the Washington Post reported Romney's rendition of Obama's statement without context or contradiction. The willful distortion by Romney was allowed to flow unchecked into the public discourse.

If there is a purpose for "fact-checkers," it is for situations like this, where one candidate wrenches out of context a comment by another with the intention to mislead voters. It also is the responsibility of reporters and editors to supply context even in spot stories.

Blocking the Facts

Where "fact-checkers" are less useful - and indeed can be downright harmful - is on larger and more nuanced questions, such as the one about Romney's precise departure date from Bain Capital. In that case, Romney created confusion over when he left by signing a series of conflicting forms and making contradictory statements. [See Consortiumnews.com's "Romney's Fact-Checker Cover-up."]

However, the Annenberg Public Policy Center's FactCheck.org and the Washington Post's Glenn Kessler chose to accept Romney's latest assertion that he had nothing to do with Bain Capital after Feb. 11, 1999, when he left to work on the Winter Olympics.

FactCheck.org made a big point that Romney would have committed a felony if he lied on his campaign disclosure form, suggesting that the public should believe him because the potential penalty for filing a false statement would be so high.

FactCheck.org (and Kessler) stuck with that position even after the Obama campaign - and many journalists - brought forward dozens of Securities and Exchange Commission documents , including some signed by Romney, showing him to be Bain Capital's owner, chief executive officer, chairman and controlling person.

Despite the obvious contradictions - and the fact that is also a felony to make false statements to the SEC - the "independent fact-checkers" took the position that the Obama campaign must prove to near 100 percent certainty that Romney actually was continuing to direct Bain Capital's decisions after February 1999.

However, that evidence was beyond the reach of anyone outside of Romney's inner circle and his Bain Capital associates - and they were stonewalling requests for information like meeting minutes, phone-call records and recollections of Romney's post-1999 contacts. Romney himself rebuffed media inquiries for details about conversations he might have had with Bain executives.

Thus, by giving Romney a pass and simply accepting his current self-serving claim, the "fact-checkers" became accomplices to a cover-up. Citing these "independent fact-checkers," Romney stiffened his refusal to answer more questions or to provide more than his last two tax returns.

When I asked Kessler in an e-mail if he felt uncomfortable being used this way - a "fact-checker" being exploited to cover up facts - he responded by saying:

"I think you misunderstand my role. I vet political statements on a case by case basis, as do the other fact checkers. … In the case of Romney's departure from Bain, I have always maintained that 1999-2002 is a grey area. I have tended to say that transactions in which Romney was personally involved before 1999 are fair game, even if the bankruptcy (such as Ampad) came later. …

"Romney could certainly clear this up by releasing more information, but in the meantime the Obama campaign has not provided enough evidence to back up claims of Romney being personally involved in deals post-1999. The burden really is on them since they are making the charge."

Yet, the same point could be made about any investigation. You start out with some evidence, which - especially in the face of stonewalling - you can legitimately cite, even if there remain some unanswered questions. In this case, the Obama camp produced official Bain Capital filings with the SEC that contradicted Romney's current claims.

If you went back four decades and looked at the Washington Post's reporting on Watergate, you would see a similar pattern: President Richard Nixon and his White House insisted there was no cover-up while reporters Bob Woodward and Carl Bernstein kept uncovering contradictory pieces of evidence.

It wasn't until the end of the process - when Nixon was forced to disclose internal tapes - that the mystery was solved. Nixon was lying and the Post was vindicated.

However, if Kessler's standards had been applied, the earlier Post stories would have received four "Pinocchios" - for a "whooper" - because Woodward and Bernstein could not prove categorically a high-level White House cover-up. They had evidence pointing in that direction but it wasn't ironclad.

So, Kessler and his fellow "fact-checkers" might want to reexamine how they operate. If they don't consider themselves investigative reporters - but rather people who simply "vet political statements" - they should stick to a narrower set of parameters.

They certainly shouldn't jump into the middle of a complex investigation and begin denouncing the investigators for not knowing everything that might conceivably be known. That only guarantees that the public never gets the full story. However, they might take issue with some dishonest selective editing.



Robert Parry broke many of the Iran-Contra stories in the 1980s for the Associated Press and Newsweek. His latest book, "Neck Deep: The Disastrous Presidency of George W. Bush," was written with two of his sons, Sam and Nat, and can be ordered at neckdeepbook.com. His two previous books, "Secrecy & Privilege: The Rise of the Bush Dynasty from Watergate to Iraq" and "Lost History: Contras, Cocaine, the Press & 'Project Truth'" are also available there.

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Condom Seizures From Sex Workers Are Undoing Years of Progress on HIV/AIDS Print
Sunday, 22 July 2012 09:59

Hodgson writes: "Identifying condoms as evidence of sex work is just another way in which the US police endangers some of society's most vulnerable."

State police forces are using condoms found on sex workers as evidence to support prostitution charges. (photo: Creasource/Corbis)
State police forces are using condoms found on sex workers as evidence to support prostitution charges. (photo: Creasource/Corbis)



Condom Seizures From Sex Workers Are Undoing Years of Progress on HIV/AIDS

By Nichi Hodgson, Guardian UK

22 July 12

 

Police in major American cities are using condoms as evidence of sex work, thereby discouraging their use.

he International Aids conference, held in the US for the first time in 22 years next week, is a chance for the country to celebrate its contribution to HIV and Aids prevention. Yet in Los Angeles, San Francisco, New York and Washington DC, state police forces are stopping, searching and arresting sex workers - and using condoms found on them as evidence to support prostitution charges, undermining decades of HIV and Aids harm reduction work in the process.

The four cities in question have significant histories of developing exemplary public health initiatives to deal with their HIV and Aids epidemics. In New York City, for example, where the Aids case rate is three times the national average, 40m condoms are distributed for free each year. Washington DC, meanwhile, which has the highest rate of Aids diagnosis of the four and the second highest rate of HIV diagnosis of any major metropolitan area in the US, has similarly embraced the so-called "rubber revolution" and, in the past decade, has increased HIV testing, decreased the rate of new cases and deaths from Aids, and appointed a mayor's commission on HIV and Aids to highlight the current administration's commitment to HIV prevention.

Law enforcement agencies have in the past had civil court orders brought against them where actions have compromised public health. In 2002, a federal judge ruled that New York City police could not arrest needle-exchange participants for carrying syringes, a directive echoed by LA chief of police William Bratton to his force in 2005. And in 1994, San Francisco's district attorney Arlo Smith signed an agreement advising that condoms should no longer be used as evidence for prostitution for the same reason - that police arrests were jeopardising public safety.

Alarmingly, this last resolution has since been abandoned, and the so-called "San Francisco model" - a positive, non-judgmental and harm-reductive approach to sex and sex work - is fast becoming the stuff of liberal legend. Instead, condoms are now being photographed by San Francisco's police as evidence of sex work, supposedly a way of law-enforcing without compromising public health. But the effect is still the same - to discourage the carrying of condoms, therefore increasing the risk of unprotected sex and exposure to HIV and Aids across the board.

Meanwhile, condom seizure prevails in New York, Washington DC and LA, creating a false belief among sex workers that there is a legal limit on the number of condoms they can carry at any given time. And as a consequence, outreach workers risk their own incrimination by carrying bundles of condoms for distribution instead.

Identifying condoms as evidence of sex work is just another way in which the US police endangers some of society's most vulnerable. In 2010, a city government transgender working group in Los Angeles recommended that local police stop confiscating condoms as a matter of safety. The force ignored them. Since then, Human Rights Watch has found alarming evidence of police abusing and "defacing" transgender sex workers. In all cities, police profiling gives them recourse to regularly stop and search any transgender individual, irrespective of profession, on the basis that he or she is "likely" to be soliciting.

Similarly, given that a conviction for prostitution is grounds for deportation from the US, immigrants without citizen status are also becoming too afraid to carry condoms. That the transgender and immigrant populations are at a higher-than-average risk of contracting HIV and Aids only compounds the deleterious consequences of current police strategy. As if harassing sex workers wasn't bad enough, the police are exacerbating the HIV and Aids health risks faced by every resident in these cities. In a final irony, county jails in San Francisco, Los Angeles, New York and Washington DC, some of the only detention centres across the US to do so, provide inmates with free condoms - the same inmates that have potentially been arrested for carrying condoms in the first place. In terms of HIV and Aids prevention, the message and method of public protection is about as clear as spilled blood.

As San Francisco's 1994 directive shows, the police have the power to balance their double duty to enforce the law and protect public safety. Sex work may be illegal in 49 of the 50 US states. But this damning policy of using condoms as evidence of prostitution is also making it illegal to be safe. With more than 30,000 delegates due at this year's International Aids Conference, the US should put its own domestic policy on the agenda.

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