11/30/2011

BOMBSHELL: S&P downgrades 37 global banks; US credit rating at risk again


Πηγή: The Coming Depression
Nov 29 2011

“Standard & Poor’s Ratings Services today said it reviewed its ratings on 37 of the largest financial institutions in the world by applying its new ratings criteria for banks, which were published on Nov. 9, 2011″.


Following Fitch Ratings decision to lower the US outlook from stable to negative, the S&P has thrown yet another bombshell after it informed in an official release post NY close that it had just downgraded 37 global banks. Goldman, BofA, Citigroup, Morgan Stanley, BNY Mellon were amongst the cuts based on a new reviewing critera it applied. Japanese and UK banks were either cut or the outlook lowered as well.

The US does not longer held AAA rating from the three agencies because on August S&P lowered the grade. US Treasuries continue to rally despite the downgrade. Recent change in the outlook by Fitch had relatively no effect on the Treasury market. “Both the action and the timing had been previously signaled by Fitch and there was no FX reaction,” said Chris Walter, from UBS Strategy. Fitch mentioned back in August that a failure of the bipartisan committee to reduce the deficit would likely lead to a negative rating.

Rating agencies are demanding the government to implement more measures to lower current fiscal deficit that is above $1 trillion on a year basis. The public debt is estimated to be around $15 trillion. The failure of Congress to make a bill that includes a credible deficit reduction plan could trigger another downgrade in US rating. According to Fitch, the use of the US Dollar as a reserve currency help the country keep its AAA rating. Source: (1) FX Street News

Global fiat currency is to blame for this mess

We hope you all understand that this whole financial services bailout episode is more accurately about further shifting the risk towards the public balance sheet and away from the once privately held. (but first they had to extract their bonuses and comp packages.)

It is the largest transfer of wealth in history! When they are bailed out once again, they will also be compensated for the mere acceptance of the bailout funds. That’s the way it worked last time and the way we’re headed again this time.

For years people have been sounding the alarm about both the size/amount of public/household debt but to no avail. We saw we were headed for the wall; as politicians crossed their fingers and hoped for the best.

Now we have the de-leveraging continued de-leveraging of small, private businesses and households and the advent of too big too jai

World debt is in the trillions, there isn’t enough energy or materials to ever generate the kind of growth that will require to repay that amount. It will NEVER be paid back.

Fractional reserve banking, interest, fiat currency have put us here. A growth economy based upon loaning money into existence and creating debt is inherently doomed to fail. You cannot have infinite growth on a finite plante. We’ve hit the wall, economic contraction for a generation is the order of the day, year, and decades.

Our best hope is aiming for a steady state economy and living within our fiscal and environmental limits.

The IMF / ECB / EU / Banks etc. are preparing for a Greek default on their debt and that’s why they want banks to get another MASSIVE “cash injection”. They don’t have the courage to come out and say it though – they want the taxpayer to backstop this.

On the US downgrade: S&P is nuts

S&P has no right to issue a downgrade because it blew it on the mortgage-backed paper. The fact that S&P did blow it during the mortgage fiasco, by continuing for years to rate junk bonds as AAA, shows just how serious the United States fiscal problems are. It covered up the problem with US government debt for years and now it can no longer do so and retain its credibility.

By the way, the Chinese rating agency Dagong already downgraded the US to A, down from AA, last November and is considering further downgrades. S&P is behind the curve and Fitch & Moody’s are like the monkeys with their hands over their ears and mouths.



References:

(1) FX Street News



UC Davis Chancellor Katehi’s past: Police repression in Greece, FBI spying in the US

UC Davis Chancellor Linda Katehi (C) leaves an "Occupy UCD" rally on campus in Davis, California November 21, 2011. More than 1,000 demonstrators rallied on Monday at the University of California at Davis to protest the pepper-praying of student protesters by police, a clash captured in video footage circulated widely on television and the Internet.

Πηγή: WSWS
By Jack Hood 
Nov 28 2011

The pepper spraying of peaceful student protesters at the University of California, Davis has become a focal point for national outrage over the police repression of demonstrations against social inequality.

The police action was ordered by UC Davis Chancellor Linda Katehi, who was acting on behalf of the UC Regents and the Democratic Party-controlled political establishment in California, which is determined to enforce a new round of drastic tuition increases on students. Katehi has spent the past week and a half defending herself against demands for her resignation, while making half-hearted attempts to distance herself from the police violence.

However, Katehi’s claims of innocence in the matter are belied by her past. She has played a major role in developing repressive measures against students protesting austerity measures and is a prime example of the growing nexus between corporate CEOs, academic administrators and the police-intelligence apparatus.

Katehi’s has been involved with police crackdowns in her home country of Greece, is one of 20 administrators involved in a national FBI network aimed at monitoring “anti-U.S.” activities on college campuses, and has overseen an administration-run campus infiltration program.

At a rally of students last Monday, Katehi made a backhanded reference to the suppression of Greek students during an uprising against the military junta in 1973. “There is a plaque out there that speaks about 17 of November in 1973, and I was there. And I don’t want to forget that, so I hope I will have a better opportunity to work with you, to meet you, to get to know you,” Katehi announced.

Aside from its hypocrisy, this reference contains an implicit threat. Katehi, as part of a team of bankers, speculators, and administrators, has worked to bring police back onto Greek university campuses after a nearly 30-year ban on such activity.

Campuses in Greece became an important focus of opposition to the Greek junta in 1973. Throughout the year, students gathered at Athens Polytechnic under the banner of “Bread, Education, Freedom” to protest the forced conscription of any students deemed to be “subversive.” In February of that year, students began a campus occupation. In November, they launched a general strike, which was met with military force on the 17th of the month.

The ultra right-wing dictatorship, with the help of fascist armed thugs, massacred 24 students as they successfully ended the occupation. Several of those killed were run over by tanks.

The brutality contributed to mass opposition that eventually led to the dictatorship’s downfall the following year. In 1982, the Greek parliament passed the Academic Asylum Law, which required police to request permission from a prosecutor before entering a campus.

Recently, however, Chancellor Katehi served on a team of representatives from the European Bank, European Commission, and International Monetary Fund, along with educators and administrators from across the world, to call for an end to these restrictions.

The team, called the “International Committee On Higher Education in Greece,” issued a report earlier this year, which Katehi co-signed, that called for an increase in police presence on campus under the guise of ensuring a “safe” environment.

“University campuses are unsafe,” the report claims. “While the [Greek] Constitution permits the university leadership to protect campuses from elements inciting political instability, Rectors have shown themselves unwilling to exercise these rights and fulfill their responsibilities, and to take the decisions needed in order to guarantee the safety of the faculty, staff, and students. As a result, the university administration and teaching staff have not proven themselves good stewards of the facilities with which society has entrusted them.

“The politicizing of universities – and in particular, of students – represents participation in the political process that exceeds the bounds of logic. This contributes to the rapid deterioration of tertiary education [emphasis added].”

According to the panel, then, peaceful student protesters like the ones who were pepper-sprayed at UC Davis “exceed the bounds of logic” and are helping to bring about the “rapid deterioration” of higher education.

The language used by the committee is strikingly similar to that used by the UC Davis administration to justify the deployment of police against students. On the morning of the police violence, the administration sent a letter to students warning that police action was necessary so that students “could learn and work in a safe, secure environment without disruption.”

In August, Greece’s PASOK government, headed by George Papandreou, approved the repeal of the Academic Asylum Law. Until his resignation on November 11, Papandreou oversaw the imposition of austerity measures dictated by the International Monetary Fund and the European banks, including further attacks on public education.

On November 17, 2011, the 38th anniversary of the massacre at Athens Polytechnic, the new Greek government authorized police entry at a university in Thessaloniki. This was the first time since 1982 that police have been allowed on a university campus.
FBI involvement

In the United States, Chancellor Katehi has participated in a national network of college presidents that works with the Federal Bureau of Investigation to “promote discussion and outreach between research universities and the FBI.”

The network is called the “National Security Higher Education Advisory Board,” and it is responsible for disseminating information regarding any activity by students and faculty that may be considered subversive.

The FBI has confirmed Katehi’s active involvement in the program. “Because of the nature of the material they discuss,” explains UC Davis administrator Andy Fell in a story from the campus faculty newspaper, Dateline, “board members must hold ‘secret’ security clearances.”

In light of this evidence of collusion with the FBI, the true meaning of Katehi’s claim that she wants to “get to know” students becomes clear.

Katehi herself boasted upon her appointment, telling the California Aggie, the UC Davis newspaper, in October 2010: “My participation allows me to visit with like-minded chancellors and presidents of major research institutions, to explore and share best practices that ensure our researchers and our research remain safe and unimpeded.”

That the real target of such activities is the politicization of students is made clear by Katehi’s involvement with the “Student Activism Response Team”—a group of 33 administrators from a variety of student service centers whose responsibility it is to infiltrate peaceful student demonstrations and disseminate information to the UC Davis Police Department. The team, active since at least 2009, is still in existence today.

The results of a Freedom of Information Act filing released last year documents the actions of the infiltration team. One email from an administrator released through the FOIA request, titled “Student Activism Response Protocol” and dated August 18, 2010, explains that administrators were given the responsibility to “receive information from all Student Affairs staff regarding any anticipated student actions, not just those of registered student organizations,” “inform police and request standby support if appropriate” and “notify and maintain communication with news service.”

Katehi’s sordid past and present actions exemplify a political establishment, comprised of both the Democrats and Republicans, that is thoroughly hostile to the interests of students, and ruthlessly determined to enforce the dictates of the corporate and financial elite in the face of growing mass opposition.


WH: ‘Democratic Process’ More Important Than Islamists Winning in Arab Nations

Veiled Egyptian women walk past a poster in Arabic that reads, “The Freedom and Justice Party” – the Muslim Brotherhood’s political arm – on the first day of parliamentary elections in Alexandria on Monday, Nov. 28, 2011.

Πηγή: cnsnews
By Patrick Goodenough
Nov 29 2011

The Obama administration is again playing down concerns about the rise of Islamist movements in Arab countries in transition, even as developments in Tunisia, Libya, Morocco and Egypt indicate that the so-called “Arab spring” may leave Islamists in charge clear across North Africa.

Egypt’s Muslim Brotherhood is widely expected to dominate parliamentary elections that began without incident on Monday and will be held in three stages over the next six weeks.

“We regard these elections as a blessed portal through which Egypt shall cross safely to democracy and the transfer of power to the Egyptian people,” the Muslim Brotherhood’s political wing, the Freedom and Justice Party, said in a statement as the polls opened.

Asked during a briefing about the election and the possibility of Islamists winning, White House press secretary Jay Carney replied, “The fact of the matter is, the democratic process is what’s important.”

“Principles matter to this president, not parties,” he continued. “And we hold whatever party prevails or is represented in the outcome of an election like this – whether it’s in Egypt or elsewhere – our standards have to do with respect for human rights, respect for the democratic process, renunciation of violence, and inclusion of and respect for minorities in the process.”

Carney said it was “unfair to assume that any party that has a religious affiliation cannot adhere to democratic principles. It is simply not the case and has not been borne out by the facts.”

“So, before we judge the disposition of a government or a parliament that is only just beginning to take shape through elections that have started today, I think we need to let the process run its course, continue to espouse our firm support for democratic principles and for civilian control of the government, and then judge the outcome by the actions of those who prevail,” he said.

At the State Department, spokesman Mark Toner adopted a similar stance.

“We’ve been very clear about how we view the Muslim Brotherhood, which is that if they’re committed to the democratic process, we welcome them as a part of the political process,” he said.

Asked about organization’s support for Hamas and its views on the Arab-Israel peace process, Toner said only that “we would call on any Egyptian government to adhere to its previous commitments and agreements.”

‘Saying many of the right things’

In Morocco, the Islamist Justice and Development Party won the most seats in parliamentary elections at the weekend, and will likely produce the country’s next prime minister. Morocco largely sidestepped the wave of protests across the region this year. King Mohammed VI offered political concessions to defuse popular sentiment, although he retains overall power.

A month ago another Islamist party, Ennahda, won elections in Tunisia for a constituent assembly, which will be tasked with drafting a new constitution.

Meanwhile in Libya, a transitional leader’s remark last month about the primacy of Islamic law (shari’a) prompted concern, little allayed by his subsequent assurances that Libyans were “moderate Muslims.”

On Monday, scores of Libyan religious leaders meeting in Tripoli called for the government to ensure that the new constitution would be based on shari’a and that violations of Islam, such as the availability of alcohol, should be prohibited.

(The situation in the remaining North African country, Algeria, is in flux. Protests early this year prompted the government to announce some reforms including constitutional amendments aimed at preventing an uprising. Emboldened, Islamists are flexing their muscles. In October two senior Islamists called on Algerians to demand the closure of all bars and stores selling alcohol. Some 200,000 Algerians were killed in an Islamist insurgency launched in the early 1990s after the army banned the Islamic Salvation Front and canceled elections it was expected to win.)

Asked about the elections in Tunisia and Morocco, Toner said Monday that Ennahda has “been saying many of the right things and it’s been encouraging.”

With regard to the Justice and Development Party in Morocco, he replied, “I think we’ll wait and see how this party actually operates and the things it says publicly, as well as its governance.”

Asked whether the administration was comfortable with “the rise of Islamic fundamentalism gaining the reins of power” in the region, Toner said, “I’m not sure I’m comfortable with the premise of your question.”

“I think what we’ve seen is sweeping change across the region; one that we believe is resulting in real democratic reform – the kind of reform we’ve long believed is necessary for many of these countries. And this process continues to play out.”

After meeting with senior European Union officials at the White House on Monday, President Obama told reporters they had “spent a lot of time discussing how we can be supportive of the best elements of what’s taking place in North Africa and the Middle East, continuing to encourage democracy, continuing to encourage transparency, continuing to encourage economic development – because we’ve both agreed that the aspirations that were expressed in Egypt and Tunisia and in Libya are not simply political issues but they’re also economic issues, and that we have to do everything we can to support increased opportunity for young people.”

Monday’s remarks build on earlier ones by administration officials, emphasizing the view that – in Secretary of State Hillary Clinton’s words – “what parties call themselves is less important than what they do.”

“The suggestion that faithful Muslims cannot thrive in a democracy is insulting, dangerous and wrong,” Clinton told a National Democratic Institute awards dinner earlier this month.

What was important, she said, was an adherence to democratic principles.

During a press briefing on Oct. 25, State Department spokeswoman Victoria Nuland also disputed a reporter’s premise that there was a “rise of fundamentalism in Tunisia, Libya, and Egypt.”

“I think what we are seeing is we are seeing newly democratic, newly free people and populations feeling their way forward,” she said.

A day earlier, she responded to a question about shari’a forming the basis of countries’ legal systems by saying that the term shari’a “has a broad application and is understood differently in different places and by different commentators.”

“We’ve seen various Islamic-based democracies wrestle with the issue of establishing rule of law within an appropriate cultural context,” Nuland said. “But the number one thing is that universal human rights, rights for women, rights for minorities, right to due process, right to transparency be fully respected.”


LA protesters brace for police raid


Πηγή: AP
By CHRISTINA HOAG and SHAYA TAYEFE MOHAJER
Nov 30 2011

LOS ANGELES (AP) -- Los Angeles police began surrounding the Occupy Los Angeles encampment Tuesday night, nearly two days after a deadline passed for protesters to clear out, as demonstrators with the movement in Philadelphia marched through the streets after being evicted from their site.

Los Angeles police in riot gear holding batons stood in the street facing a line of protesters as hundreds chanted, "The people united will never be defeated." Someone played the national anthem on a horn as helicopters circled overhead.

More than 1,000 officers who staged for the operation outside Dodger Stadium were briefed on the potential for violence and the possibility that demonstrators could throw everything from concrete and gravel to human feces.

"Please put your face masks down and watch each other's back," a supervisor told them. "Now go to work."

The officers clad in riot gear with helmets and with white plastic handcuffs hooked to their belts were taken aboard 30 city buses downtown.

Officers plan to declare an unlawful assembly and give protesters a chance to leave. Those who don't depart will be arrested.

The operation was planned at night because downtown is mostly vacant, with offices closed, fewer pedestrians and less traffic. But it could make officers more vulnerable.

"It's more difficult for us to see things, to see booby traps," Lt. Andy Neiman, told pool reporters. "Operating in the dark is never an advantage."

Neiman said the force was prepared to deal with demonstrators barricaded in the camp or holed up in trees in the small park.

About half of some 500 tents remained in Los Angles after a Monday morning eviction deadline and the remaining protesters showed no sign of leaving their weeks-old encampment, which is one of the largest still remaining in the country. Before 11 p.m., Los Angeles police had closed off streets surrounding the protest encampment.

The action in Los Angeles came after police in Philadelphia gave protesters three warning they had to leave and began pulling down tents at about 1:20 a.m. Wednesday. The eviction came more than two days after Philadelphia's deadline for protesters to remove all structures and belongings from Dilworth Plaza.

"This is a symbolic action, but in another sense this has been our home for almost two months and no one wants to see their home taken away from them," 22-year-old protester Bri Barton said while also acknowledging she and other would have to leave the site.

Most protesters participated in the march, but a few watched police take down the tents and chanted, "We are the 99 percent."

Some protesters in Los Angeles shot off fireworks near the camp where Occupy members discussed emergency preparations.

"This is a monumental night for Los Angeles. We're going to do what we can to protect the camp," said Gia Trimble, member of the Occupy LA media team.

She said she thought a lot of people would stay and risk arrest, adding, "We're really committed to this."

Demonstrators and city officials in both Los Angeles and Philadelphia were hoping any confrontation would be nonviolent, unlike evictions at similar camps around the country.

The movement against economic disparity and perceived corporate greed began with Occupy Wall Street in Manhattan two months ago, and police have removed Occupy demonstrators in other cities. Some of those instances involved pepper spray and tear gas.

In their anticipation of an eviction, the Los Angeles protesters designated medics designated with red crosses taped on clothing. Some protesters had gas masks. Broadcast footage showed police officers boarding buses that had lined up near Dodger Stadium at what appeared to be some sort of staging area.

Organizers at the camp packed up computer and technical equipment from the media tent.

Two men who have constructed an elaborate tree house fashioned a ladder pusher out of bamboo sticks tied together with twine. It was intended to push down a ladder that police may erect to get them out of the tree house.

Members of the National Lawyers guild had legal observers on hand for any possible eviction that may occur.

Pam Noles, a member of the camp media team, said the park is legally closed at 10:30 p.m.


Okay, Maybe The ACLU Is Running The CIA

Obama meets with his national security team in 2010.

Πηγή: Mother Jones
By Adam Serwer
Nov 29 2011

Sure, Rep. Michele Bachmann's repeated fact-free insinuations that the Obama national security apparatus is being run by civil libertarians are completely false, but this week law enforcement and intelligence professionals and the American Civil Liberties Union are on the same page, at least when it comes to militarizing domestic counterterrorism.

The defense funding bill authorizing domestic indefinite military detention for American citizens suspected of terrorism has come under fire from almost every leading national security official in the administration. All of them have argued that the detention provisions would harm national security:

Defense Secretary Leon Panetta said the bill would "needlessly complicate efforts by frontline law enforcement professionals to collect critical intelligence concerning operations and activities within the United States."

Director of National Intelligence James Clapper said that the provisions would "deny our nation the ability to respond flexibly and appropriately to unfolding events—including the capture of terrorism suspects."
FBI Director Robert Mueller has warned that the "fixes" introduced by the Senate Armed Services Committee "fail to recognize the reality of a counterterrorism investigation."

Now, the convergence between the ACLU and the Obama administration's national security apparatus has little to do with the ACLU's influence, it's just one of those moments where national security officials and civil libertarians happen to see eye-to-eye on something, and not even necessarily for the same reasons. The ACLU doesn't want the military investigating domestic crimes, and national security officials don't want to worry about asking permission to continue every time law enforcement starts investigating a suspect. Civil libertarian blogger Marcy Wheeler, however, sees the ACLU as possibly being "in cahoots" with a plan "to give sanction to a broad expansion of Executive war and surveillance powers the likes of which the CIA loves to exploit."

The key to this supposed plan is an amendment proposed by Senator Mark Udall (D-Colo.) that would strip the offending provisions and force the administration to describe the legal powers it thinks it has when it comes to detaining and prose terrorists. Wheeler argues the Udall amendment "unilaterally reasserts the application of the AUMFs (plural) and other vaguely defined legal bases to detention" and "dictates that detention authority apply to a far broader group of people" than the detention provisions currently in the bill.

The Obama administration's record on civil liberties has diverged sharply from his campaign promises, so I can sort of understand why Wheeler would be suspicious, but her reading of the Udall amendment is wrong. The point of the language in the amendment is to ensure that the administration reveals all the sources of its authority to Congress. The amendment lists the sources the administration could be drawing its authority from, but that's not the same as "reaffirming" them. Most crucially, the phrase in the amendment, "Any other statutory or constitutional authority for use of military force" would seem to demand a review of the kind of secret executive branch dictums that authorize things like the targeted killing of American citizens abroad who are suspected of terrorism.

Udall spokesperson Jennifer Talhelm says that the point of the amendment, beyond stripping out the provisions panned by national security officials and civil libertarians alike, is "to understand what the Executive Branch thinks of its current authorities and whether they need to be expanded or reduced or changed," and that it "does nothing to broaden the scope of detention authority."

The amendment will probably fail. The Senate isn't interested in checking executive branch authority beyond addressing the kind of culture-war counterterrorism complaints about "giving rights to terrorists" reflected in the current detention provisions. But neither Udall nor the ACLU are trying to expand executive power here—quite the opposite. They're trying to make sure it is exercised with some minimal level of transparency and accountability.


Treason From Within: The Road towards a Police State in America


Πηγή: Global Research
By Dr. Andrew Bosworth
Nov 28 2011

Preparing for the Final Takedown?

There is a shocking piece of legislation working its way through Congress. A Defense Authorization bill for 2012 allows for military detentions of American citizens on American soil. These can be indefinite detentions, with no trial.

The American Civil Liberties Union statement (more of an alert) on November 23, 2011 deserves special attention:

“The U.S. Senate is considering the unthinkable: changing detention laws to imprison people — including Americans living in the United States itself — indefinitely and without charge.”

“The Defense Authorization bill — a “must-pass” piece of legislation — is headed to the Senate floor with troubling provisions that would give the President — and all future presidents — the authority to indefinitely imprison people, without charge or trial, both abroad and inside the United States.”

“If enacted, sections 1031 and 1032 of the NDAA would:

1) Explicitly authorize the federal government to indefinitely imprison without charge or trial American citizens and others picked up inside and outside the United States;

(2) Mandate military detention of some civilians who would otherwise be outside of military control, including civilians picked up within the United States itself; and

(3) Transfer to the Department of Defense core prosecutorial, investigative, law enforcement, penal, and custodial authority and responsibility now held by the Department of Justice.”

“The bill was drafted in secret by Sens. Carl Levin (D-Mich.) and John McCain (R-Ariz.) and passed in a closed-door committee meeting, without even a single hearing.”

The American Civil Liberties Union (ACLU) is the nation’s oldest organization of its kind, emerging from the American Union Against Militarism, which opposed the US entry into World War I in 1917.

Without endorsing everything the ACLU has done, it is possible to recognize this organization as careful. It is not prone to wild exaggeration.

Fortunately, there is some resistance to the NDAA for 2012 bill, to this Department of Defense power grab, including by Sen. Dianne Feinstein (D-Calif), the chairman of the Intelligence Committee, and Sen. Patrick Leahy (D-Vt.), the chairman of the Judiciary Committee.

In fact, Sen. Feinstein appeared quite alarmed:

“I will stop reading here, but again, I want to emphasize this point. We are talking about the indefinite detention of American citizens without charge or trial. We have not done this at least since World War II when we incarcerated Japanese Americans. This is a very serious thing we are doing. People should understand its impact.”

The White House is not enthusiastic about the present wording of the two controversial sections of the bill.

In a Statement of Administration Policy (November 17, 2011), the administration objected to two main items:

1) that the bill mandates the military detention of covered persons (restraining the Justice Department’s hand) and

2) that the detention provisions can cover American citizens within the United States.

Obviously, if the President is put in the position of having to sign a bill with such a provision (indefinite detention for Americans), it would spark bottomless outrage from from both Occupy Wall Street and the Tea Party.

Even mainstream, apolitical Americans would be concerned about such a provision that, on its face, is unconstitutional. Ordinary Americans are already waking up to the specter of tyranny, and the NDAA for 2012 would accelerate that process.

So the administration released this statement in an effort to trim the most offensive sections from the bill:

“Moreover, applying this military custody requirement to individuals inside the United States, as some Members of Congress have suggested is their intention, would raise serious and unsettled legal questions and would be inconsistent with the fundamental American principle that our military does not patrol our streets.”

Senators Levin’s response to the administration is troubling on two counts.

First, Sen. Levin’s response suggests that the administration changed its position midway through this process or, possibly, that there is a split between the White House on the one hand and the Pentagon or CIA on the other:

Sen. Levin’s states that it was the administration all along that assisted with the wording:

“Section 1031 was written by Administration officials for the purpose of codifying existing authority.”

Then Sen. Levin complains that:

“The Administration itself asked that we delete language in section 1031 that would have excluded the detention of U.S. citizens or lawful resident aliens based on conduct taking place within the United States.”

Senator Levin insists that there is nothing in those sections that breaks with established law, and that the committee accepted the administration’s proposed changes to retain the civilian – rather than the military – option for detainment.

This is how Sen. Levin tried to put at ease the concerns:

“Nothing is automatic. The administration would have the discretion to waive military detention and hold a detainee in civilian custody if it decided to do so.”

Sen. Levin then proceeds to misinterpret the Supreme Court case that he himself cited: Hamdi v. Rumsfeld (2004). As Sen. Levin claims:

“The Supreme Court held in the Hamdi case that existing law authorizes the detention of American citizens under the law of war in the limited circumstances spelled out here, so this is nothing new.”

But the circumstances in Sen. Levin’s bill are not “limited” at all, since they involve indefinite detention without trial.

Besides, the Supreme Court actually decided – in the Hamdi case in fact – that detainees who are U.S. citizens must have the ability to challenge their enemy combatant status before an impartial judge. This precludes indefinite detention without a trial.

(Hamdi v. Rumsfeld had addressed the case of Yaser Esam Hamdi, a U.S. citizen being detained indefinitely as an “illegal enemy combatant.”)

As Justice Sandra Day O’Connor wrote in the opinion:

“… it would turn our system of checks and balances on its head to suggest that a citizen could not make his way to court with a challenge to the factual basis for his detention by his government, simply because the Executive opposes making available such a challenge. Absent suspension of the writ by Congress, a citizen detained as an enemy combatant is entitled to this process.”

Eight of the nine justices of the Court agreed that the government does not have the power to hold indefinitely a U.S. citizen without basic due process protections enforceable through judicial review.

Clearly, this upcoming defense bill – especially Sections 1031 and 1032 – is plagued by confusion. Some of this confusion appears to be deliberate.

The ACLU is supporting the Udall Amendment advanced by Sen. Mark Udall (D-Colo.). The ACLU claims that it will delete the harmful provisions and “make sure that the bill matches up with American values.”

It is time, however, to raise a more fundamental question about the NDAA for 2012 and Sections 1031 and 1032.

What sinister forces are behind the crafting of this legislation, behind closed doors? Most likely, officials in the defense and intelligence communities penned the legislation, then used Senators Carl Levin and John McCain to advance it.

Sen. Carl Levin makes periodic sense, but he has spent much of his 32 years in the Senate helping to bloat the military-industrial and police-state apparatus. Meatime, across his tenure, the economy of his home state Michigan has imploded.

And Se. Levin appears to take seriously the latest absurd accusation: that there was an Iranian-Zeta plot to assassinate the Saudi Ambassador in a restaurant. This plot bears all the hallmarks of previous unlawful entrapment cases. For more details on recent unlawful entrapment: http://multipolarfuture.com/?p=462

Sen. John McCain also makes periodic sense, but he has become a knee-jerk neo-con, unable to find a war (or a long-term occupation) that he cannot support.

Sen. John McCain would do well to remove his name from such a draconian bill, lest he add more fuel to the rumor that, as a prisoner of war in North Vietnam, he was transformed into some kind of Manchurian candidate with a time-release program to destroy American democracy from within.

As many Americans know, for over a decade there have been dozens of pieces of legislation and executive orders that have chipped away at the US Constitution, specifically at its Bill of Rights.

The “war on terror” was originally to be waged against foreigners in far-away lands, but Rep. Ron Paul was right, the anti-terror infrastructure is swinging around to be used against American citizens.

This was the design all along.

The intention was always to immobilize the American public with a police-state control grid, now backed by the regular military, so that the process of economic extraction and political subjection could be completed.

The NDAA for 2012 represents a significant step, on the part of the government, towards a “final takedown.”

The bill’s provision for the indefinite detention of American citizens, without charge or trial, represents nothing short of an declaration of war by the federal government on the American people.

Hopefully, more sensible Senators and Representatives will squash this diabolical legislation.



The Arab Awakening and Israel


Πηγή: New York Times
By THOMAS L. FRIEDMAN
Nov 29 2011

Israel is facing the biggest erosion of its strategic environment since its founding. It is alienated from its longtime ally Turkey. Its archenemy Iran is suspected of developing a nuclear bomb. The two strongest states on its border — Syria and Egypt — are being convulsed by revolutions. The two weakest states on its border — Gaza and Lebanon — are controlled by Hamas and Hezbollah.

It was in this context that Prime Minister Benjamin Netanyahu went before the Knesset last Wednesday and argued that the Arab awakening was moving the Arab world “backward” and turning into an “Islamic, anti-Western, anti-liberal, anti-Israeli, undemocratic wave.” Ceding territory to the Palestinians was unwise at such a time, he said: “We can’t know who will end up with any piece of territory we give up.”

Netanyahu added: “In February, when millions of Egyptians thronged to the streets in Cairo, commentators and quite a few Israeli members of the opposition said that we’re facing a new era of liberalism and progress. They said I was trying to scare the public and was on the wrong side of history and don’t see where things are heading.” But, he told the Knesset, events had proved him correct. Netanyahu reportedly said that when he cautioned President Obama and other Western leaders against backing the uprising against Egypt’s then-president, Hosni Mubarak, he was told that he didn’t understand reality: “I ask today, who here didn’t understand reality?”

Netanyahu’s analysis of the dangers facing Israel is valid, and things could still get worse. What is wrong is Netanyahu’s diagnosis of how it happened and his prescription of what to do about it — and those blind spots could also be very dangerous for Israel.

Diagnosis: From the very start, Israeli officials have insisted that Obama helped to push Mubarak out rather than saving him. Nonsense. The Arab dictators were pushed out by their people; there was no saving them. In fact, Mubarak had three decades to gradually open up Egyptian politics and save himself. And what did he do? Last year, he held the most-rigged election in Egyptian history. His party won 209 out of 211 seats. It is amazing that the uprising didn’t happen sooner.

Israel’s fear of Islamists taking power all around it cannot be dismissed. But it is such a live possibility precisely because of the last 50 years of Arab dictatorship, in which only Islamists were allowed to organize in mosques while no independent, secular, democratic parties were allowed to develop in the political arena. This has given Muslim parties an early leg up. Arab dictators were convenient for Israel and the Islamists — but deadly for Arab development and education. Now that the lid has come off, the transition will be rocky. But, it was inevitable, and the new politics is just beginning: Islamists will now have to compete with legitimate secular parties.

Netanyahu’s prescription is to do nothing. I understand Israel not ceding territory in this uncertain period to a divided Palestinian movement. What I can’t understand is doing nothing. Israel has an Arab awakening in its own backyard in the person of Prime Minister Salam Fayyad of the Palestinian Authority. He’s been the most radical Arab leader of all. He is the first Palestinian leader to say: judge me on my performance in improving my peoples’ lives, not on my rhetoric. His focus has been on building institutions — including what Israelis admit is a security force that has helped to keep Israel peaceful — so Palestinians will be ready for a two-state solution. Instead of rewarding him, Israel has been withholding $100 million in Palestinian tax revenues that Fayyad needs — in punishment for the Palestinians pressing for a state at the U.N. — to pay the security forces that help to protect Israel. That is crazy.

Israel’s best defense is to strengthen Fayyadism — including giving Palestinian security services more areas of responsibility to increase their legitimacy and make clear that they are not the permanent custodians of Israel’s occupation. This would not only help stabilize Israel’s own backyard — and prevent another uprising that would spread like wildfire to the Arab world without the old dictators to hold it back — but would lay the foundation for a two-state solution and for better relations with the Arab peoples. Remember, those Arab peoples are going to have a lot more say in how they are ruled and with whom they have peace. In that context, Israel will be so much better off if it is seen as strengthening responsible and democratic Palestinian leaders.

This is such a delicate moment. It requires wise, farsighted Israeli leadership. The Arab awakening is coinciding with the last hopes for a two-state solution between Israelis and Palestinians. Israeli rightists will be tempted to do nothing, to insist the time is not right for risk-taking — and never will be — so Israel needs to occupy the West Bank and its Palestinians forever. That could be the greatest danger of all for Israel: to wake up one day and discover that, in response to the messy and turbulent Arab democratic awakening, the Jewish state sacrificed its own democratic character.


Iceland votes to recognise Palestine

Össur Skarphéðinsson, Icelandic Minister for Foreign Affairs told the United Nations General Assembly that Iceland was determined to fully recognize Palestine and that he will next week put to the Parliament of Iceland a resolution on the recognition of Palestine as a sovereign and independent state.

Πηγή: theage
By AP
Nov 30 2011

Iceland's parliament has voted to recognise the Palestinian territories as an independent state.

Parliament posted on its website Tuesday that it had passed the motion, with 38 of 63 votes in favour of a resolution to recognise Palestine "as an independent and sovereign state" based on borders predating the Six Day War of 1967.

The resolution recognises the Palestine Liberation Organisation as the legal authority for the state and urges Israel and Palestine to reach a peace agreement,
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The vote comes as Palestinians prepare to make a bid for full United Nations membership, although the suspected failure to win the required support of nine of the Security Council's 15 members, and a promise from the United States that it will veto any council resolution endorsing membership is threatening to stall the move.


Russia to help Cuba with production of rifle ammunition


Πηγή: Rianovosti
Nov 30 2011

Russia and Cuba are planning to sign a contract on building an assembly line for production of ammunition for Kalashnikov assault rifles, Kommersant business daily reported on Wednesday.

According to a source in the Russian Ministry of Industry and Trade, cited by Kommersant, an assembly line for 7.62-mm rounds used in Kalashnikov assault rifles and other Russian-made rifles will be built at Cuba’s Comandante Ernesto Che Guevara military plant.

The source said that Russia’s arms exporter Rosoboronexport had already prepared a contract, which includes the license and technology transfer.

The official did not specify the value of the contract but said Russia was hoping to receive a contract in the future on a complete overhaul of rifle ammunition production facilities in Cuba, which were built in 1970s-1980s with the help of Soviet specialists.

A Rosoboronexport source has confirmed the planned contract with Cuba but refused to provide more details on the subject, Kommersant said.

Although the Cuban leadership has repeatedly said it has no intention of resuming military cooperation with Russia after the surprise closure of the Russian electronic listening post in Lourdes in 2001, bilateral military ties seem to have been improving since 2008.

Chief of the Russian General Staff Gen. Nikolai Makarov said during his visit to Cuba in 2009 that modernization of the Soviet-made military equipment and training of Cuban military personnel will be the focus of Russian-Cuban military cooperation in the future.


Pakistan sends notice to US to vacate airbase

Pakistan Foreign Minister Hina Rabbani Khar

Πηγή: NewKerala
Nov 30 2011

Pakistan has sent a notice to the US to vacate the Shamsi airbase that is used to launch drone attacks, Foreign Minister Hina Rabbani Khar said, adding that time had come to review its relations with that country.

Khar said Tuesday that in line with the decisions of the Defence Committee of the Cabinet, a notice has been sent to the US for vacating the Shamsi airbase in Balochistan province within 15 days, reported Associated Press of Pakistan.

Describing Saturday's NATO airstrike that killed 24 Pakistani soldiers as a breach of Pakistan's sovereignty, the foreign minister said: "Time has come to review our relations."

Khar told PTV that Pakistan's positive cooperation must be recognised at international level and should not be taken as its weakness.

Khar stressed that the country's sovereignty and territorial integrity must be respected at all cost.

She added the country would not tolerate such incidents in future.

"We don't want any aid or assistance, but we want to live with dignity and honour," she was quoted as saying.

To a query, the foreign minister said: "It is up to Pakistan's political forces to evolve future strategy, keeping in view the current situation."

"It is for the first time that the decision to halt NATO supply was taken at the highest level," she said, adding: "We cannot sacrifice our national interests."

This year has seen a significant deterioration in the US-Pakistan ties. In February, Raymond Davis, an undercover CIA agent, was arrested in the eastern city of Lahore for killing two Pakistani nationals. Then Al Qaeda leader Osama bin Laden was killed May 2 by US commandos who swooped into Abbottabad without tipping off the Pakistani military.

Earlier this month, a secret memo to Washington said that President Asif Ali Zardari had feared a military coup, leading to Husain Haqqani stepping down as US envoy. Even before the dust could settle down, the major NATO attack on two Pakistani checkposts worsened the ties.


US urges Pakistan to review Bonn talks boycott


Πηγή: The Nation
Nov 30 2011

The United States urged Pakistan on Tuesday to reconsider its decision to boycott a conference on Afghanistan in Germany next week, saying it plays a key role in the future of its war-torn central Asian neighbour.

Pakistan decided earlier Tuesday to boycott the December 5 Bonn conference as it widened its protest over lethal cross-border Nato strikes on Saturday that have exacerbated a deep crisis in US ties.

"It is important to note that this conference is about Afghanistan, about its future, about building a safer, more prosperous Afghanistan within the region. So it's very much in Pakistan's interest to attend this conference," State Department spokesman Mark Toner told reporters at a news briefing.

"Seeing this on a continuum, Pakistan was obviously in Istanbul and pledged support for a strong, prosperous Afghanistan within the region. It was a very important statement, and, again, now we're moving towards Bonn. This is an important opportunity," he noted.

It's also worth noting that there's still going to be 85 nations and 15 international organisations that are going to be in Bonn.

"So while we would like to have Pakistan there, we still think it'll be a valuable opportunity to talk about Afghanistan's future," Toner said, but refrained to use the word "regret" or "disappointed" on Pakistan's decision, which the State Department spokesman normally reserves for.

"I think I said it as plainly as I can. You know, it's in their interest, so we think, you know, it's important that they be there," Toner said when asked if he regrets the Pakistani decision not to come to Bonn.

He said the US is conducting an investigation that will look in to the matter.

"In every conversation we've had and continue to have with the Pakistani government, while expressing our deep condolences about the incident, we're also pledging to continue to work together,' the US official said.

Toner, however, noted that there is no change in US strategy towards Afghanistan in view of the recent decisions taken by Pakistan following the weekend s incident on the Af-Pak border in which some 24 Pak soldiers were killed in a cross-border fire by NATO.

"We have had a significant incident that took place, but this has not disrupted our overall strategy vis-a-vis Afghanistan, vis-a-vis Pakistan. We're still committed to working with both countries to build a more stable and secure future for both countries," he said.

"Our approach to Afghanistan remains on track. We are still planning on the Bonn conference. It's not going to be delayed or postponed. We still have, as I mentioned, some 85 nations and some 15 international organisations who will attend. We think it's important to go forward with our plans, long-term plan for Afghanistan," he said.

"You know, do we want Pakistan to be involved in that future? Yes. Is it vital? Certainly. And we're going to work towards making sure that Pakistan is, indeed, involved as we move forward. Pakistan has been involved in the past, and we believe it will be in the future," Toner asserted.

Pakistan, he said face an existential threat in the form of extremists who operate in that border region.

"It's a threat to Afghanistan's capital. It's a threat to Pakistan's stability. We need to address it," he said adding that Secretary of State Hillary Clinton during her recent trip to Islamabad discussed the need for Pakistan to address some of these threats head-on.

"That threat remains intact. So we need to address it," he said.

"It is absolutely vital, as we've seen, and, you know, not just from a security standpoint, but from a political and economic standpoint, that there is closer cooperation between Pakistan and Afghanistan.

"It's very much in Pakistan's long-term interests, as it is, in fact, in the long-term interests of every one of Afghanistan's neighbors, that Afghanistan has stability, has prosperity, and is a safe and secure neighbor, with safe and secure borders.

"Those are all very much not only in Pakistan's interest, but in all of Afghanistan's neighbours' interests," he said.


Gaddafi's daughter urges the overthrow of Libya's government

Aisha Gaddafi, daughter of Muammar Gaddafi

Πηγή: The Telegraph
Nov 29 2011

The daughter Muammar Gaddafi has urged the Libyan people to rise up and overthrow the transitional government which toppled her father's regime.


In an audio message broadcast on Syria's al-Rai television station, Aisha Gaddafi called for a revolt against Libya's new rulers, a government that she said "arrived with the planes of Nato."

"My father has not left, he is always among us," she said, following the traditional 40-day mourning period after his death. "Don't forget the orders of your father urging you to continue fighting, even if you no longer hear his voice."

Col Gaddafi, who ruled Libya 42 years, was captured with his son Muatassim on October 20 as he fled from the city of Sirte. He was later shot dead by rebel forces.

As the Libyan capital of Tripoli fell to rebel forces in August, Aisha, her mother and two of her brothers took refuge in neighbouring Algeria.

Aisha's appeal puts her in direct conflict with the terms of a deal she and her family members made with Algeria's government, promising not to make public statements at the risk of losing their status as humanitarian refugees.

After similar statements in September, Algerian officials warned that she could be expelled.

The Algerian regime had close ties with Gaddafi but has since worked to repair strained relations with Libya's new leaders.


Libya’s new rulers admit prisoner abuse


Πηγή: The Daily Star
By Vanessa Gera (AP)
Nov 30 2011

TRIPOLI: Libya’s new leaders said Tuesday that some prisoners held by revolutionary forces have been abused, but insisted the mistreatment was not systematic and pledged to tackle the problem.

The acknowledgment comes a day after the U.N. released a report detailing alleged torture and ill treatment in lockups controlled by the forces that overthrew dictator Moammar Gadhafi. The report says that Libyan revolutionaries still hold about 7,000 people, many of them sub-Saharan Africans who are in some cases accused or suspected of being mercenaries hired by Gadhafi.

Libya’s new leaders, who received the backing of the U.S., France, Britain and other countries in their fight against Gadhafi, are eager to assure the world of their commitment to democracy and human rights.

Interior Minister Fawzy Abdul-Ali acknowledged that abuses have occurred but said the new government is trying to eliminate them.

“We are trying our best to establish a legitimate system that is authorized to make arrests, detain and interrogate people,” he told the Associated Press. “We are trying to minimize the possibilities of violations taking place.”

Abdul-Ali said the government plans to create special security units under the authority of the central government that will handle prisoners. Leaders are working to bolster “the authority of the new government all across the country,” he said.

Responding to the U.N. report, Deputy Prime Minister Mustafa Abushagur also acknowledged there are problems with detainees.

“Are there illegal detentions in Libya? I am afraid there are,” Abushagur told a news conference.

He said any abuses have been committed by militias not yet controlled by central authorities.

Libya’s new leaders have struggled to stamp their authority on the country since toppling Gadhafi’s regime. One of the greatest challenges still facing the leadership is how to rein in the dozens of revolutionary militias that arose during the war and now are reluctant to disband or submit to central authority.

Abushagur also denied some news reports claiming that Libyan leaders are arming rebels in Syria.

“We are with the Syrian people but we are not going to send fighters or arms,” he said.

Also Tuesday, dozens of people with relatives who went missing in Libya’s recent civil war rallied in front of the main government building to demand that authorities speed up the search for their loved ones.

Most of the missing were fighters, but there are also civilians among them. There are an estimated 20,000 people missing, according to the prosecutor for the International Criminal Court, Luis Moreno-Ocampo.

Authorities have started trying to find and identify the missing but face many problems.


No, Really, Iran Isn’t Developing Nuclear Weapons


Πηγή: Antiwar
By Russ Wellen
Nov 30 2011

It’s just as easy for a nuclear disarmament advocate as a hawk to believe that a state such as Iran that has not only established a nuclear energy program but also experimented with nuclear weapons until 2003 is still developing them. Nevertheless, however much Tehran may experience lust in its heart for nuclear weapons, the evidence to judge it guilty of, as it were, an illicit affair is sorely lacking. Three of the most credible sources of commentary on the subject will explain why.

To the U.S. government and much of the media, the recent report on Iran’s nuclear program by the International Atomic Energy Agency is damning. But at the Bulletin of the Atomic Scientists, Greg Thielmann and Benjamin Loehrke (Thielmann is one of this author’s most trusted nuclear-weapons analysts) write:

Washington talks a lot, but does not read very much. … When, earlier this month, the International Atomic Energy Agency (IAEA) released a report on Iran’s nuclear program, several media agencies and politicians walked away with two messages: that the Vienna-based agency now refutes past estimates of the US intelligence community, and that Iran is now making a break for the bomb. Both representations are false. Yet these assertions have been repeated often enough to give them traction with the public and Congress.

This Washington Post op-ed exemplifies that line of thinking.

The Obama administration pledged that Iran would suffer painful consequences for plotting to assassinate the Saudi ambassador in Washington and for refusing to freeze its nuclear program. Key European allies and Congress — not to mention Israel — are ready for decisive action. But on Monday the administration unveiled another series of half-steps. Sanctions were toughened on Iran’s oil industry, but there was no move to block its exports. … [T]he administration declined to directly sanction the central bank.

The result is that President Obama is not even leading from behind on Iran; he is simply behind.

But, as Thielmann and Loehrke, remind us (emphasis added):

Most analysts familiar with the report agree that there “is nothing in the report that was not previously known by the governments of the major powers” — a nuclear Iran is “neither imminent nor inevitable.” While it is clear that Iran’s continuing research on nuclear weapons is a serious concern for international security, there “has been no smoking gun when it comes to Iran’s nuclear weapons intentions.”

Thielmann also told Seymour Hersh in The New Yorker that

There is troubling evidence suggesting that studies are still going on, but there is nothing that indicates that Iran is really building a bomb. … Those who want to drum up support for a bombing attack on Iran sort of aggressively misrepresented the report.

Hersh also wrote that

Robert Kelley, a retired IAEA director … told me that he could find very little new information in the IAEA report. He noted that hundreds of pages of material appears to come from a … laptop computer, allegedly supplied to the IAEA by a Western intelligence agency, whose provenance could not be established. [The notorious “laptop of death” — Ed.] Those materials, and others, “were old news,” Kelley said, and known to many journalists.

In the same vein as Thielmann and Loehrke, Hersh quotes Kelley as saying, “I wonder why this same stuff is now considered ‘new information’ by the same reporters.” Hersh concludes:

The new report, therefore, leaves us where we’ve been since 2002, when George Bush declared Iran to be a member of the Axis of Evil — with lots of belligerent talk but no definitive evidence of a nuclear-weapons program.

Completing this troika of truthfulness, if you will, is Gareth Porter at IPS News. He uses a claim in the report that Iran built an explosives chamber for nuclear testing to kill two myths — that and another in the report — with one stone. About the second, that a foreign scientist, who turned out to be Russian Vyacheslav Danilenko, had assisted in the construction of said containment chamber, Porter writes:

[That] claim appears to be an effort to confuse Danilenko’s well- established work on an explosives chamber for nanodiamond synthesis with a chamber for weapons testing, such as the IAEA now claims was built at Parchin. … The report said the alleged explosives chamber was designed to contain “up to 70 kg of high explosives” which is claims would be “suitable” for testing what it calls a “multipoint initiation system” for a nuclear weapon.

But a 2008 slide show on systems for nanodiamond synthesis posted on the internet by the U.S.-based nanotechnology company NanoBlox shows that the last patented containment chamber built by Danilenko and patented in 1992, with a total volume of 100 cubic meters, was designed for the use of just 10 kg of explosives.

So much for the containment chamber as nuclear testing chamber as well as Danilenko as a nuclear scientist née nanodiamond scientist.

It might be helpful to revisit exactly why the United States stands ready to condemn Iran at every turn, aside from their mutual history (most notably the seizure of the American embassy by Iranian revolutionaries in 1979, U.S. implication in the coup of prime minister Mohammad Mossadegh in 1953, and subsequent U.S. support for the shah). Suspicion of Iran’s nuclear enterprises derives from the experimentation that ended in 2003 as well as uranium enrichment on a large scale that Iran began in 2002 without informing the IAEA. It’s hard to see the point in continuing to hold Tehran’s feet to fire about those issues — unless of course they’re being used as an excuse to keep from negotiating in good faith with Tehran.


Death to England! Iran mob storms British Embassy as terrified staff cower from rioters and police stand by


Πηγή: Mailonline
By IAN DRURY, MICHAEL PURCELL and TIM SHIPMAN
Nov 30 2011

David Cameron expressed outrage last night after hardline Iranian protesters stormed the British Embassy in Tehran and tried to take staff hostage.

A frenzied mob of militant students ransacked the main building and a smaller diplomatic compound in the city.

They lobbed petrol bombs, smashed windows, stole classified documents, torched the Union flag and even tore up a portrait of the Queen.


Protesters break into the British Embassy and tear down the Union Jack. Some then proceeded to ransack offices


Clashes: Students wearing some form of purple and green bandanna with Islamic writing on it push against riot police who had been protecting the embassy


A car goes up in flames as an Iranian protester fearing an explosion flees across the road inside the British Embassy



Up in smoke: Protesters inside the British Embassy compound watch as an embassy car burns
The rioters also chanted 'Death to England' and threw rocks. One man held up a Union flag with a skull and cross bones on it.

The embassy came under siege despite being guarded by Iranian police and private security guards.

One of those who took part in the attacks said they were driven by their 'hatred' of Britain. Others denounced the embassy as a 'den of spies'.

Yesterday a furious Prime Minister denounced the attack as 'outrageous and indefensible'.




Disrespect: An angry student tears a picture of the Queen, while right, another man in glasses and with a beard holds up-side-down a picture of Queen Elizabeth


A protester holds up a banner as his fellow Iranians wave flags and shout insults at Britain


Hundreds of students surge through the gates of the British embassy today as anti-English feelings reached boiling point


Breaking in: Dozens of protesters enter the gate of the embassy, throwing rocks, petrol bombs and burning documents looted from offices

'The failure of the Iranian government to defend British staff and property was a disgrace,' Mr Cameron said.

'We hold the Iranian government responsible for its unacceptable failure to protect diplomats in line with international law.

'The Iranian government must immediately ensure the continued safety of our staff, return all property and secure the compound immediately.



Masked demonstrators hurl embassy papers into the crowd. Right, a student uses a metal bar to strike the British emblem


Students from some universities and seminaries burned British flags as they clashed with police, while others held flags proclaiming their hatred of Britain... while not leaving out the U.S. and Israel



Flash point: Iranian protesters burn the Union Jack outside the embassy in Tehran


Fury: A Union Jack flag is symbolically burned by a jeering crowd of Iranians


Dressing down: A protester kicks away the coat of arms from the embassy building

Shattered glass: Iranians have long been suspicious of the UK in large part due to Britain's long-held influence on its rulers and economy prior to the Islamic revolution


On the loose: Rampaging demonstrators use whatever they can find to smash up property

THE HATED SYMBOL OF THE WEST

America severed ties with Iran within months of the storming of the U.S. embassy in 1979.

Iran also swiftly expelled Israeli diplomats, handing their embassy over to the PLO.That left Britain as the most hated Western power to have a functioning embassy in Iran. The British embassy was shut down three times in the turbulent decade that followed the Islamic revolution.

It re-opened fully in 1988. But a year later diplomatic ties were broken again over Ayatollah Khomeini’s fatwa against British author Salman Rushdie.

In the late 1990s Britain spent £1.3million renovating the embassy. The Rushdie affair had been resolved and London hoped for better relations with Iran.

But that hope dimmed when moderate president Mohammad Khatami was succeeded by the anti-Western Mahmoud Ahmadinejad.

'Those responsible for this criminal attack must be prosecuted. The Iranian Government must recognise that there will be serious consequences for failing to protect our staff.'

Whitehall sources said President Mahmoud Ahmadinejad's regime would be hit with 'robust and resolute' sanctions as early as today when ministers update the Commons.

Foreign Secretary William Hague spoke to Iranian foreign minister Ali Akbar Salehi in the 'strongest terms' over his government's 'very serious failure' to protect the British Embassy.

The United Nations, U.S., France and Russia all joined in condemnation of the incident.

Last night Mr Hague said all embassy staff and their families were safe.

He played down reports that staff had been held hostage, saying the situation had been 'confusing'.

But insiders said that at one point employees were holed up in a compound surrounded by several hundred marauding rioters.

Mr Cameron chaired a meeting of the Government's Cobra emergency committee and the Iranian charge d'affaires to London was summoned to the Foreign Office to be rebuked.

Iran said it 'regretted' the attacks on the British Embassy and the Gulhak Garden diplomatic compound several miles away in northern Tehran.


Iranian riot police stand guard as protesters gather outside the British Embassy in Tehran. A handful of demonstrators managed to break their rank


An Iranian Basij militia member throws stones towards the embassy building as riot police look on

A HARD-LINE RIOT: NOT THE FIRST TIME THE BRITISH EMBASSY HAS COME UNDER ATTACK



The British embassy in Tehran is an oasis of green tranquillity in the dusty centre of the teeming Iranian capital.

But when hard-line students threw stones at the symbol of British power, it was far from the first time the building had come under attack.

In November 1978 - a turbulent year before the Islamic Revolution - the embassy was ransacked by a crowd angry at Britain's support for the Shah of Iran.

The mob forced open the high gates, despite the gallant efforts of a lone junior diplomat to keep them out, then set fire to the Chancery building, but no one was hurt.

The embassy was shut down three times in the decade that followed the Shah's overthrow in 1979, re-opening in 1988.

A year later diplomatic ties were broken off again over the fatwah on Salman Rushdie, finally being restored at ambassador level in 1998.

In the early 1980s a narrow street flanking the embassy was renamed after the IRA hunger striker Bobby Sands, although a new street sign now misspells it as Babi Sandz street. Taxi drivers, however, still refer to it by its old name - Churchill Street.But Whitehall officials said the protesters could not have acted without the approval of President Ahmadinejad's repressive regime.

A senior source said: 'Things like this don't happen in Tehran without part of the Iranian state giving authority or permission. If they had wanted to put a stop to it, they would have.'

The attack was the most serious assault on foreign diplomatic missions in Iran since the seizing of the U.S. Embassy compound in 1979 when 52 Americans were held captive for 444 days.

The demonstrations were reported to have been staged by a new pro-regime group called The Muslim Students Followers of the Supreme Leader. They were protesting against tough new financial sanctions imposed by London last week over Iran's nuclear programme.

Iran retaliated on Monday by passing a law to expel the British ambassador, Dominick Chilcott, who took up his post only last month.

Some 15 British nationals are stationed at the embassy. They had been confident the protest would pass peacefully because scores of Iranian anti-riot police were deployed outside. But security forces stood idly by when protesters, chanting 'The Embassy of Britain should be taken over' and 'Death to England', swarmed over the gates.

Embassy staff fled the main compound by the back door before mobs broke in. Smoke rose from the grounds after a car was driven in and set alight.

It is understood Mr Chilcott was at the embassy when it was attacked. His residence and offices are on the compound.

He was praised by Mr Cameron for handling a 'dangerous situation with calm and professionalism'.

After police regained control of the main site about 300 protesters swarmed into the Gulhak Gardens complex.

The U.S. last night condemned the attack 'in the strongest terms' with President Obama urging the Iranian government to deal with those responsible.

Russia, Iran's closest ally, described the assault as 'unacceptable and deserving condemnation'.


Earlier in the day, Iranian police had prepared for a demonstration but protesters still managed to break their way through


A protester ducks on the ground after apparently being beaten by riot police outside the British Embassy


Booty: One protester seemed to forget his disgust at Western culture when he emerged from the British Embassy with a poster of the U.S. film Pulp Fiction


Motion: The Iranian parliament agreed to expel British ambassador Dominic Chilcott by 171 votes to four.


11/29/2011

Facebook settles with FTC over deception charges

This Oct. 11, 2010 file photo, shows the logo of the online network Facebook, recorded in Munich with a magnifying glass of a computer screen of a laptop. Facebook said Tuesday, Nov. 29, 2011, it is settling with the Federal Trade Commission over charges it deceived consumers. The FTC had charged that the social network told people they could keep the information they share private and then allowed for it to be made public. The charges go back to 2009.

Πηγή: AP
By BARBARA ORTUTAY
Nov 29 2011

NEW YORK (AP) -- Facebook is settling with the Federal Trade Commission over charges it deceived consumers with its privacy settings to get people to share more personal information than they originally agreed to.

The FTC had charged that the social network told people they could keep the information they share private, then allowed it to be made public.

The charges go back to at least 2009, when Facebook changed its privacy settings so that information users may have deemed private, such as their list of friends, suddenly became viewable to everyone.

"They didn't warn users that this change was coming, or get their approval in advance," the FTC said.

The FTC said the settlement requires Facebook to get people's approval before changing how it shares their data.

In a blog post, Facebook CEO Mark Zuckerberg said the company has made a "bunch of mistakes." But he adds that this has often overshadowed the good work Facebook has done. He says Facebook has addressed many of the FTC's concerns already.

The settlement is similar to one Google agreed to earlier this year over its Buzz social networking service. Like Google, Facebook has agreed to obtain assessments of its privacy practices by independent, third-party auditors for the next 20 years.

Facebook isn't paying anything to settle the case, though future violations could lead to civil fines.

Zuckerberg said Facebook has created two new executive positions - a chief privacy officer of products and a chief privacy officer of policy as part of its response to the settlement.


Eurozone ministers OK $10.7 billion Greek loan

Greek Finance Minister Evangelos Venizelos, left, shakes hands with Italian Prime Minister and Finance Minister Mario Monti during a round table meeting of the eurogroup at the EU Council building in Brussels on Tuesday, Nov. 29, 2011. The 17 finance ministers of countries that use the euro converged on EU headquarters Tuesday in a desperate bid to save their currency and to protect Europe, the United States, Asia and the rest of the global economy from a debt-induced financial tsunami.

Πηγή: AP
By DON MELVIN
Nov 29 2011

BRUSSELS (AP) -- Officials in Brussels say eurozone finance ministers have approved an euro8 billion ($10.7 billion) bailout loan installment for Greece.

Without the loan Greece would have run out of cash and been in default before Christmas.

The EU had demanded, and received, letters from the leaders of Greece's main political parties pledging support for tough austerity measures to get the loan.

The installment is part of a euro110 billion ($150 billion) bailout package from eurozone nations and the International Monetary Fund that has kept Greece afloat since May 2010.

The officials spoke on condition of anonymity to divulge information while the meeting was still going on.


A (hard) Greek restructuring by the numbers


Πηγή: FT
By Tracy Alloway
May 9 2011

(When it was still a hypothetical option)

Or, losers in a Greek debt restructuring.

Some estimates courtesy of JPMorgan’s flows and liquidity team:

The ECB bought a large amount of Greek government bonds through its Securities Market Program. Our colleagues in Euro rates research estimate that the ECB bought around €40bn of Greek government bonds with €50bn of notional value, assuming an average purchase price of 80% to par. But the ECB has an even bigger exposure to Greece through its lending to Greek banks.

Greek banks had borrowed €91bn from the ECB as of the end of February with collateral of €144bn. What does this collateral consist of? $48bn is Greek government bonds held by Greek banks on their balance sheet. €55bn consists of government-guaranteed bonds issued by Greek banks, €25bn of which was only issued at the end of last year for the Greek banks to meet new more punitive collateral requirements by the ECB. €8bn is zero-coupon bonds which the Greek government had lent to Greek banks in 2008. The remaining €33bn is likely to be Greek ABS/covered bond collateral. The Greek government agreed earlier this year to extend state-guarantees to Greek banks by another €30bn, but it appears that this new aid package has not been used by Greek banks. All this analysis suggests that 77% of the collateral that Greek banks posted with the ECB is government or government-guaranteed, which would be directly affected in the hypothetical scenario of a Greek debt restructuring. In addition, the remaining 23% of ABS/covered bank bond collateral would almost certainly be affected in the case of a Greek debt restructuring as the solvency of Greek banks would become an issue.

In total, the notional ECB exposure to Greece amounts to around €50bn + €144bn = €194bn. Against this notional exposure, the ECB has lent/invested €40bn + €91bn = €131bn or 68% of its notional exposure.These calculations imply that in a hypothetical case of a Greek debt restructuring, the ECB is protected for a haircut of up to 32%. Beyond that cushion, the ECB is exposed to losses. A hypothetical haircut of 50% would create losses of around €35bn for the ECB.

The Eurosystem has experienced losses on refinancing operations in the past during the Lehman crisis as 5 banks defaulted on their repo operations. The losses incurred by the Eurosystem are to be shared by all national central banks in proportion to their shares in the ECB’s capital. The Eurosystem has €81bn of capital and reserves currently, enough to withstand even a 50% Greek debt haircut. But it would be a lot more problematic for the ECB if other countries such as Ireland had to restructure. The exposure of the ECB to Ireland is similarly big but likely with a smaller cushion. The total exposure of the ECB to Ireland consists of around €20bn of bond purchases and €83bn of repos with domestic Irish banks. This excludes around €67bn of ELA lending which represents an exposure for the national central bank rather than the Eurosystem as a whole. But if domestic Irish banks had to replace their ELA borrowing with ECB borrowing over the coming months, the total exposure of the ECB to Ireland would rise to €170bn, well above of that of Greece.

Greek banks own €49bn of Greek bonds. Their equity amounts to €29bn. The market value of their equity is €12bn, suggesting that the market is already pricing in a loss of €17bn or 35%. A hypothetical haircut of 50% on Greek government debt would create losses of around €25bn, leaving only €4bn of equity (or 1% of assets) for the Greek banking system. But the losses for Greek banks would be much smaller if a Greek debt restructuring were to take place in mid 2013. The average maturity of their Greek government bond holdings is 5 years and roughly €10bn matures every year. By mid 2013, their Greek government bond holdings will drop to €25bn, i.e. half of their current holdings.

The central Bank of Greece held directly €7bn of Greek government bonds as of the end of February. A hypothetical haircut of 50% on these bond holdings would wipe out its entire capital and reserves of €3bn.

Greek social security and other public entities hold around €30bn notional of Greek government bonds. They have already applied a loss of 30% in these holdings. A hypothetical haircut of 50% would create additional €6bn of losses vs. current financial assets of €31bn.

European banks hold €50bn of Greek government bonds according to Q3 2010 BIS data. Even a 50% hypothetical haircut would be manageable. But it becomes more problematic when ones looks at the total exposure of European banks to Greece, including private sector loans, repos, guarantees and credit commitments. These private sector claims are also likely to suffer in the case of a Greek debt restructuring. According to BIS, European banks’ total exposure to Greece was €165bn at the end of Q3 2010, driven by French banks (€68bn) and German banks (€50bn). The potential losses for European banks would be more threatening if other countries such as Ireland were to restructure. According to BIS, European banks’ total exposure to Ireland (both public and private sector exposure) was €450bn at the end of Q3 2010, driven by British banks (€165bn), German banks (€150bn) and French banks (€57bn).

Now, there’s nothing surprising about a bank resisting the idea of bond haircuts.

But JPM’s point about the difficulty in a Greek debt restructuring is a salient one given that the private financial sector has become so muddled with public liabilities. The Greek government has assumed a whole bunch of banking risk, which in turn has been pushed onto the ECB. Unfortunately, the Greek sovereign-bank model is one that’s also been infamously used in Ireland. Meanwhile Portugal has just announced it will up its own sovereign-bank loop by providing €35bn worth of government guarantees for bank bonds, to most likely be used as collateral at the ECB. The sovereign-bank loop is intensifying.

So we imagine that some of that top-secret European debate is not so much about the viability of a Greek debt restructuring per se — Greek debt sustainability is clearly on a downward spiral in a deflationary environment — but the possibility of triggering more restructurings, as suggested by JPM.

The good news is that there are those points at which a Greek debt restructuring becomes less onerous– such as after 2013, when the European Stability Mechanism (ESM) specifically set up to enable debt restructurings comes into effect. Before then, it looks very voluntary, or very painful.