Tag: ek Politics

I don’t generally work without the buttress of other people’s research and observations because, as a pseudonymous author on the Internet, you have no more reason to trust my opinion than your own.

Less in fact.

As I look out on the developments of this summer I have a few observations and predictions that I’ll just share, naked, my bias should already be apparent in the things I’ve chosen to bring to your attention.

That’s called Editorial decision making.

The National Security State is just as pervasive as the worst imaginations of the most tin foil wearing conspiracy theorist.  My only surprise is that after 7 years of personal advocacy and stony indifference it has suddenly captured the public’s attention.  I believe Glenn Greenwald when he says this is the tip of the iceberg and I hope Ed Snowden stole enough secrets to keep him safe.

Nobody likes to be spied on.  We all have a private movie of the shameful things we have done, or did not do, that we wish to keep from the world.  “If you have nothing to hide you have nothing to fear”, is a crock and the hypocrites who parrot it deserve full exposure.  This will only happen if we maintain the pressure, if they didn’t know it was wrong they wouldn’t be scrambling like roaches to avoid the light.

Barack Obama is not as popular among African Americans as you think.  The erosion of his polling has as much to do with the decline of his favorables in that demographic from 98% to 70% as anything else.  The only group where his ratings have increased?  White college+ males making more than $70,000 annually.

Guess they know which side of the bread substitute the icky wax is on.  Obama has performed shamefully for the economic interests of the 99%.  Expect big battles over the budget and debt ceiling with Obama pushing his “Grand Bargain” of chained CPI earned benefit cuts at every opportunity.  Pray for the Tea Party to refuse to provide him a scant fig leaf of revenue.

I’d like to be optimistic about the environment.  It’s a good thing we’ve been able to keep the Alberta Tar Sands bottled up so far, but the sad fact of the matter is we have 50x the amount of carbon we need to produce a global extinction, Epoch changing, methane hydrate explosion in already proven reserves.

If we pump what we already got, we’re all dead.

There is absolutely no indication that any of the Very Serious People are taking that seriously at all, even though Solar and Wind technology are economically competitive with carbon fuels (one of the reasons Alberta might go bust economically and why they are so frantic), much less Nuclear which is just about the most expensive power there is.

I could go on, but I’ll save it.  I’m actually a cheerful guy and I’d hate for you to think I don’t have a plan to improve things when actually, I do.

Rebel.  Rebel in the small things.  Don’t watch the Idiots on TV, say mean things about them (they are notoriously thin skinned, vanity driven, narcissists).  Don’t give Politicians your time or money, you need them more than they do (unless they are worthy), bad mouth them vocally when they deserve it which is most of the time.  They are not your friend, they are your servant.  Punish bad corporations by refusing to patronize them, again they care about your money, not you.

These are but a few ephemeral examples, I’m sure you can think of more and better.  Above all stay informed and active.  No one can take your freedom away, you have to let them.

You remember this-

Canada suspends railroad’s operations after disaster

AFP

8/13/13

The Montreal, Maine & Atlantic Railway train, carrying crude oil from the Bakken shale fields of North Dakota, was parked overnight at a nearby town when it slipped away, derailed and exploded in the center of Lac-Megantic.

The railway’s chairman has said the disaster appeared to have been caused by an engineer’s failure to set hand brakes on the train properly.

Forty seven dead.

Quebec targets CP Railway for Lac-Mégantic cleanup costs

The Canadian Press

Published Wednesday, Aug. 14 2013, 5:22 PM EDT

The Quebec government added the Canadian Pacific Railway to its list of legal targets Wednesday, casting a wider net to recover millions of dollars in cleanup costs from the Lac-Mégantic disaster.

…

CPR was included as one of the defendants because, the government said Wednesday, it was the main contractor responsible for the fateful shipment that was supposed to send the cargo from North Dakota to a New Brunswick oil refinery.

It handed off the train in Montreal to the smaller Montreal, Maine & Atlantic Railway Ltd., which then operated the tanker train that jumped the tracks in Lac-Mégantic on July 6.

…

In one court filing, MM&A said its insurance coverage was $25-million and estimated the cleanup cost would climb past $200-million.

By adding the CPR to its legal notice, the Quebec government locked in on a bigger target than MM&A – one with much deeper pockets.

…

On Wednesday, the province also added another firm to the notice: World Fuel Services Inc., which is a subsidiary of the petroleum-logistics firm World Fuel Services Corp. The parent company and another subsidiary, Western Petroleum Company, were listed in the initial demand from the government.

The Miami-based World Fuel Services had bought the crude oil that was to be shipped to the Irving refinery in St. John, N.B.

…

World Fuel Services, Western Petroleum Company and MM&A are among 10 defendants listed in several wrongful-death lawsuits filed last month in an Illinois court. Both World Fuel Services and MM&A have also been named in a proposed class-action suit in Quebec.

Lac-Megantic Disaster: Canadian Pacific Railroad Rejects Quebec’s Demand For Money

By The Canadian Press

Posted: 08/15/2013 1:28 pm EDT

Canadian Pacific says it holds no financial responsibility for the Lac-Megantic disaster and is rejecting a legal demand by the provincial government that it help fund the cleanup of the devastated Quebec town.

Rajan Calls Krugman "Paranoid" for Criticizing Reinhart and Rogoff’s Research

By William K. Black, New Economic Perspectives

Posted on August 13, 2013

The original feud was most famously between Stiglitz and Rogoff.  Stiglitz, who led the movement at the World Bank to throw off its support for austerity, memorably claimed that IMF was staffed with “third rate” economists.  Rogoff famously blasted Stiglitz in a July 2, 2002, “open letter” (only months after Stiglitz was made a Laureate) that, inter alia, referred to him as a “loose cannon” who had “slandered” the IMF staff, slammed him for refusing to “admit to having been even slightly wrong about a major real world problem,” suggested he was so arrogant that he doubted that Paul Volcker was “really smart,” admitted that Stiglitz had a few ideas with which the IMF would “generally agree” because most of them were “old hat,” described Stiglitz’s most recent book as “long on innuendo and short on footnotes,” derided him as pretending to see himself “as a heroic whistleblower” when he was actually peddling “snake oil,” described Stiglitz views as being most analogous to Arthur Laffer’s “voodoo economics” (cleverly and deeply insulting on multiple levels), accused Stiglitz of lacking faith in markets and having faith in increasingly democratic governments (“you betray an unrelenting belief in the pervasiveness of market failures, and a staunch conviction that governments can and will make things better”), and ended with a wonderfully nasty “compliment” that compared Stiglitz to a famous scholar who suffers from often disabling mental illness (“Like your fellow Nobel Prize winner, John Nash, you have a ‘beautiful mind.’ As a policymaker, however, you were just a bit less impressive.”)  To top off this list, Rogoff told Stiglitz that he should pull his book from publication because it “slandered” a senior IMF official.

But those are only the gratuitous insults that Rogoff launched at Stiglitz.  His real attack was that Stiglitz had done incalculable damage to the developing world by criticizing the IMF and by opposing austerity as “battlefield medicine” for nations thrown into severe recessions.

…

Rogoff’s claim is that the “impulsive” Stiglitz’s criticism of the IMF during the Asian crisis endangered the economic recovery essential to “indigent people in Asia” because it could have reduced “confidence” in the IMF’s policy of imposing austerity as “battlefield medicine” for Nations that were in sharp recessions.

…

Having analogized Stiglitz to a murderous war criminal, Rogoff returns to his subthemes that Stiglitz is arrogant, a terrible economist, and personally responsible for the IMF’s failed austerity programs because Stiglitz “ignominiously sabotaged” those programs by criticizing them.  Rogoff asserts that the key to economic recovery from a recession is the appearance of what many economists now refer to as the “confidence fairy” and that austerity is the sole elixir that can summon the confidence fairy.  The confidence fairy only appears if one believes, really believes, in fairies so Stiglitz’s criticism of austerity was an act of sabotage that prevented the IMF from summoning the fairy.

…

Rogoff’s criticisms of Stiglitz and his (and the IMF’s) embrace of Greenspan, Rubin, and Summers’ assaults on financial regulation produced the criminogenic environments that led to the epidemics of control fraud that drove the global financial crisis and the Great Recession.  Reinhart and Rogoff (R&R) published a book claiming that government stimulus programs were counterproductive and that austerity should be the response.  They asserted in policy recommendations that there was a cliff when a nation’s debt reached 90% of its GDP that led to untenable interest expense burdens that served as a long-term brake on economic growth.  Their book was widely and favorably cited by proponents of austerity.  The proponents were able to restrict the size of the U.S. stimulus program, remove its vital “revenue sharing” component that could have prevented so much harm to states and communities and speeded the recovery, and force much of the stimulus to be in the form of relatively ineffective tax cuts for the wealthy.  The impact of R&R in the Eurozone was far worse.  It led to austerity programs that forced the Eurozone into a gratuitous recession and much of the periphery into a second Great Depression that continues.

…

There were strong, immediate criticisms of R&R’s claims about austerity and the asserted debt cliff, including those of my colleague Randy Wray that proved correct.  R&R failed to distinguish between nations with fully sovereign currencies and other nations and engaged in selective data that excluded nations and years that ran counter to their claimed findings.  Graduate students from two of the Nation’s few remaining heterodox economics departments (University of Massachusetts, Amherst and the University of Missouri-Kansas City) devastated the R&R book by examining its data – and the data R&R excluded.  The U. Mass graduate student won deserved fame for finding that R&R had made serious data entry errors that when corrected revealed that the purported 90% cliff was fictional and greatly reduced the relationship that R&R reported between increased debt and reduced growth.  Our graduate students demonstrated that if one were to infer causality from the data the direction of causality ran the opposite of what R&R claimed in their policy arguments.  Recessions led to high levels of debt, not the other way around.

…

For reasons that pass all understanding, Reinhart and Rogoff decided to claim that the U. Mass study had confirmed the R&R study that higher debt was associated with lower growth and to claim that they had never argued that there was a cliff or that high debt led to lower growth.  This was a strategy that had to fail in the modern era, which retained records of their statements and statements of policy makers about the cliff and about their claim that high debt led to low growth.  (Note that Rogoff’s 2002 letter lambasting Stiglitz made that same claim.)

…

Reinhart and Rogoff’s disingenuous response to the revelation of their many errors prompted Krugman to call them out on their claims.  Note that Reinhart and Rogoff’s response (immediately above) did not complain of Krugman’s (quite mild) comments one week before they wrote their April 26, 2013 response.

…

Reinhart and Rogoff reprised some of the tactics of Rogoff’s 2002 open letter attacking Stiglitz with an open letter (May 25, 2013) attacking Krugman for criticizing R&R.  The famous line in this iteration was: “it has been with deep disappointment that we have experienced your spectacularly uncivil behavior the past few weeks. You have attacked us in very personal terms, virtually non-stop….”

…

Just when one might have hoped that R&R’s flawed study, their disastrous support for austerity, and the feud would become a bit of arcane economic history, Rajan, on the way to India to lead its central bank, decided to rally around his IMF colleagues and to (by innuendo) accuse Krugman of being “paranoid.”

…

There are three obvious things to say in response to Rajan’s title and claim.  First, having read Rogoff’s open letter to Stiglitz, if Rajan wants to criticize a “paranoid,” “spectacularly uncivil” style of discourse containing myriad ad hominem attacks he has aimed his pen at the wrong economist.

Second, Krugman did not make ad hominem attacks on Rajan’s IMF colleagues.  Krugman made substantive criticisms of Reinhart and Rogoff’s arguments and practices.  One can debate the accuracy of his criticisms, but they were addressed to the merits of their research.

Third, Rajan makes an ad hominem attack on Krugman in this article.  Worse, he does it by innuendo, implying that Krugman is “paranoid.”  Rajan and Rogoff have reason to be personally upset with Krugman.  Krugman wrote a June 9, 2011 (2010) column that explained that Rajan and Rogoff gave spectacularly bad advice not only in favor of fiscal austerity, but raising interest rates, at a time when doing so would have been disastrous and was unsupported by any economic model.  Krugman quoted Keynes’ famous passage in which he noted that many economists viewed the willingness to inflict misery on others as the hallmark of a real economist.

…

Readers will likely ignore Rajan’s column because they will consider his attack on Krugman as an understandable, but disingenuous, payback for Krugman criticisms of the three former IMF economists.  That would be a shame, for Rajan’s article contains two enormously important admissions that my colleagues who specialize in macroeconomics have long emphasized.

…

Theoclassical economists did not simply assume away finance and money.  By assuming finance and money away they implicitly assumed away fraud and the essential regulatory cops on the beat.  Theoclassical economists pushed to eviscerate the institutional protections such as effective financial regulation and regulators that had helped ensure “that the financial plumbing worked in the background” and created the criminogenic environments that led to the epidemics of control fraud that drive our recurrent, intensifying crises.  Economists ignored the warnings and the policies recommended by another Laureate, George Akerlof.  Akerlof and Paul Romer wrote a classic article in 1993 entitled “Looting: The Economic Underworld of Bankruptcy for Profit.”

…

Neoclassical economists overwhelmingly continue to ignore Akerlof, Romer, and their former colleague Jim Pierce’s findings about control fraud and the findings of criminologists.  Rajan’s book about the crisis, for example, asserts that fraud played no material role in the crisis and describes a hypothetical scam that he says illustrates the (lawful) causes of the crisis.  The scam, however, requires two felonies and would fail as a scam.  Rajan does not understand the law or fraud.  The accounting control fraud “recipe,” by contrast, works and has great explanatory power.

Transcript

UK wages fall among sharpest in EU

Press Association

Sunday 11 August 2013 09.12 EDT

The value of UK workers’ wages has suffered one of the sharpest falls in the EU, House of Commons library figures show.

The 5.5% reduction in average hourly wages since mid-2010, adjusted for inflation, means British workers have felt the squeeze more than those in countries hit by the eurozone crisis. Spanish workers’s wages dropped by 3.3% over the same period and in Cyprus salaries fell by 3% in real terms.

Only Greek, Portuguese and Dutch wages suffered a steeper decline than the UK, the analysis showed, while they rose by 2.7% in Germany and 0.4% in France.

Across the EU as a whole the average fall in wages, adjusted for the European Central Bank’ s harmonised index of consumer prices, was 0.7% and in eurozone area 0.1%.

The shadow Treasury minister, Cathy Jamieson, said: “These figures show the full scale of David Cameron’s cost of living crisis. Working people are not only worse off under the Tories, we’re also doing much worse than almost all other EU countries.

Despite out of touch claims by ministers, life is getting harder for ordinary families as prices continue rising faster than wages. People on middle and low incomes have also seen tax rises and cuts to tax credits, while millionaires have been given a huge tax cut.”

…

Cameron has overseen 35 consecutive months of falling real wages, more than any other prime minister on record, and spending power has dropped in every month but one under coalition rule as price rises outstrip wage increases

Meanwhile in Greece-

Contraction Shows Signs of Slowing for Greece

By DAVID JOLLY, The New York Times

Published: August 12, 2013

The Greek economy posted its 20th consecutive quarterly decline in the three months through June, government data showed on Monday, but a slower pace of contraction provided a glimmer of hope for beleaguered Greeks.

Gross domestic product shrank by 4.6 percent in the second quarter compared with the same three months a year earlier, the official Hellenic Statistical Authority said. That was an improvement from the first quarter of 2013, when the economy contracted 5.6 percent compared with a year earlier.

…

“The troika’s forecast for a 4.2 percent annual decline in 2013 looks achievable,” Mr. May (an economist in London with Capital Economics) said.

But it remains “plausible,” he said, that the Greek economy will continue shrinking into 2015. He forecast a 2 percent decline in G.D.P. for next year, followed by a 0.5 percent contraction in 2015.

…

Many economists argue that the austerity approach favored by the troika is itself part of the problem, pushing Greek unemployment to depression levels. The jobless rate reached a new peak of 27.6 percent in May, according to the statistical agency, with youth unemployment around 65 percent.

Austerity has in practice largely meant laying off civil servants and cutting social spending, because raising taxes generates little revenue in a collapsing economy.

The URL title for this piece is- Greek Economy Shrinks for 20th Straight Quarter.

I have a uncle who lives there.

No, I’m talking about taxes, money, dollars.

That’s where he lives.  Dollars, Taxes.

Corporate sell-outs exploit a secret new gimmick

By David Sirota, Salon

Wednesday, Jul 31, 2013 4:33 PM UTC

As The Hill reports, the U.S. Senate’s “top tax writers have promised their colleagues 50 years worth of secrecy in exchange for suggestions on what deductions and credits to preserve” in a tax “reform” bill that aims to overhaul the tax code from scratch. The system, reports the newspaper, allows only 10 congressional staff members to have “direct access to a senator’s written suggestions” and “each submission will be given its own ID number and be kept on password-protected servers, with printed versions kept in locked safes” in the National Archives until the end of 2064.

…

(C)onsider the career of one of the architects of this scheme, Max Baucus.

The retiring Montana senator is the senior Democrat on the tax-writing Senate Finance Committee. In that position, he hasn’t used his power to rid the tax code of corporate-written loopholes, subsidies and handouts – the public record shows that he has used his power to riddle the tax code with those expensive giveaways. In exchange for embedding those handouts in the tax code, Baucus has been rewarded handsomely with campaign cash to the point where he has been famously labeled “K Street’s Favorite Senator.” That label is particularly appropriate considering a recent dispatch from the New York Times showing that “no other lawmaker on Capitol Hill has such a sizable constellation of former aides working as tax lobbyists.”

In light of such a record, the notion that Baucus has built the anonymous submission system in order to help challenge K Street is, in a word, absurd. Having spent so much political capital enriching his corporate donors and lobbyists at the expense of taxpayers, he is retiring with one last gift to those benefactors – a secrecy system designed to let them rewrite the tax code from scratch in a way that most serves their interests.

NSA cites case as success of phone data-collection program

By Ellen Nakashima, Washington Post

Published: August 8

He was a San Diego cab driver who fled Somalia as a teenager, winning asylum in the United States after he was wounded during fighting among warring tribes. Today, Basaaly Moalin, 36, is awaiting sentencing following his conviction on charges that he sent $8,500 to Somalia in support of the terrorist group al-Shabab.

Moalin’s prosecution, barely noticed when the case was in court, has suddenly come to the fore of a national debate about U.S. surveillance. Under pressure from Congress, senior intelligence officials have offered it as their primary example of the unique value of a National Security Agency program that collects tens of millions of phone records from Americans.

Officials have said that NSA surveillance tools have helped disrupt terrorist plots or identify suspects in 54 cases in the United States and overseas. In many of those cases, an agency program that targets the communication of foreigners, including e-mails, has proved critical.

…

(I)n 2007, the NSA came up with a number in Somalia that it believed was linked to al-Shabab. It ran the number against its database.

…

The NSA found that the San Diego number had had “indirect” contact with “an extremist outside the United States,” FBI Deputy Director Sean Joyce told the Senate last week. The agency passed the number to the FBI, which used an administrative subpoena to identify it as Moalin’s. Then, according to court records, in late 2007, the bureau obtained a wiretap order and over the course of a year listened to Moalin’s conversations. About 2,000 calls were intercepted.

…

In 2009, an FBI field intelligence group assessed that Moalin’s support for al-Shabab was not ideological. Rather, according to an FBI document provided to his defense team, Moalin probably sent money to an al-Shabab leader out of “tribal affiliation” and to “promote his own status” with tribal elders.

In 2010, three years after the bureau opened an investigation, it arrested Moalin as he was about to board a flight to Somalia to visit his wife and children.

…

U.S. officials argue that Moalin’s number probably would not have surfaced – at least not in a timely fashion – had it not been for the database.

…

Such arguments do not persuade critics, even when the government asserts that the database helped break another case involving a co-conspirator in a plot to bomb the New York City subway system. “In both cases,” Sen. Ron Wyden (D-Ore.) said recently on the Senate floor, “the government had all the information it needed to go to the phone company and get an individual court order.”

If time was of the essence, he said, a different court order or administrative subpoena would allow for an emergency request for the records. Wyden noted that both Moalin and the subway plot co-conspirator were arrested “months or years after they were first identified” by mining the phone logs.

The bottom line, said Rep. Adam Schiff (D-Calif.), a House Intelligence Committee member, is that even if the program is “only occasionally successful, there’s still no justification that I can see for obtaining that amount of data in the first place.”

The numbering kind of falls apart at 6 and 7.  You have my best guess.

Or you could ignore his system altogether and come up with a dozen or two “epic fails.”

Is B of A the Most Embarrassing Department of Justice Suit Ever?

By William K. Black, New Economic Perspectives

Posted on August 8, 2013

The Department of Justice’s (DOJ) latest civil suit against Bank of America (B of A) is an embarrassment of tragic proportions on multiple dimensions.  In this version I explore “only” seven of its epic fails.

The two most obvious fails (except to the most of the media, which failed to mention either) are that the DOJ has once again refused to prosecute either the elite bankers or bank that committed what the DOJ describes as massive frauds and that the DOJ has refused to bring even a civil suit against the senior officers of the banks despite filing a complaint that alleges facts showing that those officers committed multiple felonies that made them wealthy by causing massive harm to others.  Those two fails should have been the lead in every article about the civil suit.

The next most obvious DOJ fail, also ignored, was that the DOJ compounded the first two fails by congratulating itself for holding the frauds “accountable” for their crimes.  One can only imagine the hilarity with which B of A senior officers in their mansions they bought with the proceeds of their frauds must have greeted the DOJ’s latest pratfall.  If DOJ’s leadership cannot find the intestinal fortitude to renounce their infamous “too big to prosecute” doctrine they can at least have the decency to stop praising themselves for violating their oath of office and their duty to the Nation.

The fourth fail adds a new means by which DOJ has caused long-term harm to the Nation.

…

The complaint alleges that the Federal Home Loan Bank of San Francisco (FHLBSF) and Wachovia were prudent purchasers of B of A’s mortgage backed securities (MBS) – unlike the normal, imprudent MBS purchasers whose numbers are so large as to be “countless.”  Any competent defense counsel for the banks and bankers, credit rating agencies, etc. being sued for fraud will be eagerly quoting DOJ and demanding that the courts dismiss the lawsuits of investors that purchased MBS sold with the aid of fraudulent “representations (reps) and warranties” on the grounds that the investors were imprudent because they were “chas[ing] … higher rates of return.”

…

Fifth, it is hilarious for DOJ to claim that (in 2008) Wachovia, one of the Nation’s most notorious originators of fraudulent loans; was a victim of unique purity when it bought MBS from B of A.  Of course, it was equally hilarious when B of A responded to the complaint by claiming that it could not have engaged in fraud because Wachovia and the FHLBSF were financially “sophisticated.”  Criminologists have long observed how vulnerable the allegedly sophisticated are to being defrauded.

…

(Sixth) Why does DOJ Pretend that B of A’s Fraud Only Occurred in 2008 in One Deal?

The Complaint demonstrates that B of A engaged in widespread fraud, yet it sues only against one of the B of A’s officers’ relatively smaller frauds (though even it, at $885 million, is huge).

…

Again, it becomes clear that DOJ does not understand the most basic facts about the actual B of A fraud schemes and is unwilling to bring even a civil action large enough to recover a substantial amount of the losses caused by B of A’s vastly larger fraudulent sales of fraudulent mortgages.  I have explained that no honest lender would take the actions B of A’s officers took to ensure that its underwriting was pathetic.  In the home mortgage lending context this will produce widespread mortgage origination fraud.  Fraudulent loans can only be sold to the secondary market through further fraud.

…

DOJ is focused on a false assumption that the secondary market is the key rather than the ability to borrow and grow by reporting record (albeit fictional) profits in the near term by following the fraud recipe.  DOJ also fails to ask the obvious question – if the secondary market caused such a drastic and perverse change in home lenders’ economic incentives why didn’t the secondary market purchasers realize that fact and take steps to protect themselves from the lenders’ perverse incentives?  Nobody had a gun to Wachovia and the FHLBSF’s heads and required them to buy B of A’s fraudulent MBS.

…

(Seventh) An excerpt from paragraph 50 of the complaint illustrates DOJ’s factual and analytical incoherence and indicates why its incoherence has been fatal to any prosecution of the credit rating agencies for their role in aiding and abetting fraud in the secondary market.

…

These statements are, at best, disingenuous.  The credit rating agencies could have required that they be provided with the loan types on all the underlying mortgage files.  The investors could have refused to purchase the MBS unless B of A gave them the right to review a sample of the loan files.  The credit rating agencies and the purchaser deliberately refused to review even a sample of the files of the loans sold in the secondary market.  Had they reviewed a sample of the B of A’s loan files (and been honest) they would have never have purchased the loans because the quality of B of A’s portfolio was awful – and rapidly falling.

Exclusive: U.S. directs agents to cover up program used to investigate Americans

By John Shiffman and Kristina Cooke, Reuters

Mon Aug 5, 2013 3:25pm EDT

The undated documents show that federal agents are trained to “recreate” the investigative trail to effectively cover up where the information originated, a practice that some experts say violates a defendant’s Constitutional right to a fair trial. If defendants don’t know how an investigation began, they cannot know to ask to review potential sources of exculpatory evidence – information that could reveal entrapment, mistakes or biased witnesses.

“I have never heard of anything like this at all,” said Nancy Gertner, a Harvard Law School professor who served as a federal judge from 1994 to 2011. Gertner and other legal experts said the program sounds more troubling than recent disclosures that the National Security Agency has been collecting domestic phone records. The NSA effort is geared toward stopping terrorists; the DEA program targets common criminals, primarily drug dealers.

“It is one thing to create special rules for national security,” Gertner said. “Ordinary crime is entirely different. It sounds like they are phonying up investigations.”

…

“Remember that the utilization of SOD cannot be revealed or discussed in any investigative function,” a document presented to agents reads. The document specifically directs agents to omit the SOD’s involvement from investigative reports, affidavits, discussions with prosecutors and courtroom testimony. Agents are instructed to then use “normal investigative techniques to recreate the information provided by SOD.”

…

A former federal agent in the northeastern United States who received such tips from SOD described the process. “You’d be told only, ‘Be at a certain truck stop at a certain time and look for a certain vehicle.’ And so we’d alert the state police to find an excuse to stop that vehicle, and then have a drug dog search it,” the agent said.

After an arrest was made, agents then pretended that their investigation began with the traffic stop, not with the SOD tip, the former agent said. The training document reviewed by Reuters refers to this process as “parallel construction.”

The two senior DEA officials, who spoke on behalf of the agency but only on condition of anonymity, said the process is kept secret to protect sources and investigative methods. “Parallel construction is a law enforcement technique we use every day,” one official said. “It’s decades old, a bedrock concept.”

…

One current federal prosecutor learned how agents were using SOD tips after a drug agent misled him, the prosecutor told Reuters. In a Florida drug case he was handling, the prosecutor said, a DEA agent told him the investigation of a U.S. citizen began with a tip from an informant. When the prosecutor pressed for more information, he said, a DEA supervisor intervened and revealed that the tip had actually come through the SOD and from an NSA intercept.

“I was pissed,” the prosecutor said. “Lying about where the information came from is a bad start if you’re trying to comply with the law because it can lead to all kinds of problems with discovery and candor to the court.” The prosecutor never filed charges in the case because he lost confidence in the investigation, he said.

…

As a practical matter, law enforcement agents said they usually don’t worry that SOD’s involvement will be exposed in court. That’s because most drug-trafficking defendants plead guilty before trial and therefore never request to see the evidence against them. If cases did go to trial, current and former agents said, charges were sometimes dropped to avoid the risk of exposing SOD involvement.

RIP

Fukushima boss hailed as hero dies

Justin McCurry, The Guardian

Wednesday 10 July 2013 00.47 EDT

Masao Yoshida – whose actions as manager of the Fukushima Daiichi power plant during its triple meltdown averted an even greater disaster – has died.

Yoshida, 58, took early retirement from the plant’s operator, Tepco, in late 2011 after being diagnosed with oesophageal cancer. He died in a Tokyo hospital on Tuesday, reports said.

Tepco and Yoshida, a heavy smoker, said the cancer was not related to the nuclear accident caused by the March 2011 tsunami that hit Japan.

…

Yoshida, who had been manager of the plant for just nine months when the tsunami knocked out its regular and emergency power supplies, was reprimanded but later hailed as a hero as it became clear that his actions had saved the plant from a nuclear fission chain reaction – a potentially far more devastating scenario than a fuel meltdown.

…

Despite his largely calm demeanour at the time, Yoshida would later admit that he feared he and his colleagues would perish inside the plant. “During the first week of the accident I thought several times that we were all going to die,” he told journalists shortly before he retired.

…

The company’s president, Naomi Hirose, paid tribute to Yoshida’s contribution and his ability to encourage the other engineers and emergency workers – nicknamed the Fukushima 50 – who braved high levels of radiation in the early days of the crisis.

Masao Yoshida, Nuclear Engineer and Chief at Fukushima Plant, Dies at 58

By HIROKO TABUCHI, The New York Times

Published: July 9, 2013

Mr. Yoshida had been chief manager at Fukushima Daiichi for just nine months when a 42-foot tsunami inundated the site on March 11, 2011, knocking out vital cooling systems to the plant’s six reactors. Eventually hydrogen explosions and fuel meltdowns occurred at three reactors, releasing vast amounts of radioactive matter into the environment.

…

When the tsunami hit, Mr. Yoshida took command from inside a fortified bunker at the plant. In video footage of the command room released by Tokyo Electric last year, Mr. Yoshida can be seen at times pushing his workers to hook up water hoses or procure fuel, at times tearfully apologizing to teams he sent out to check on the stricken reactors.

…

He later offers to lead a “suicide mission” with other older officials to try pumping water into another reactor, but is dissuaded. And as officials warn that core meltdowns have most likely started, he directs men to leave the reactors but stays put in the bunker. Mr. Yoshida later said that the thought of abandoning the plant never occurred to him.

Restarting Reactors

Japan: Radioactive water likely leaking to Pacific

By MARI YAMAGUCHI, Associated Press

July 10, 2013

Japan’s nuclear regulator says radioactive water from the crippled Fukushima power plant is probably leaking into the Pacific Ocean, a problem long suspected by experts but denied by the plant’s operator.

…

The watchdog’s findings underscore TEPCO’s delayed response in dealing with a problem that experts have long said existed. On Wednesday, the company continued to raise doubts about whether a leak exists.

TEPCO spokesman Noriyuki Imaizumi said the increase in cesium levels in monitoring well water samples does not necessarily mean contaminated water from the plant is leaking to the ocean. TEPCO was running another test on water samples and suspects earlier spikes might have been caused by cesium-laced dust slipping into the samples, he said. But he said TEPCO is open to the watchdog’s suggestions to take safety steps.

Japanese Nuclear Plant May Have Been Leaking for Two Years

By HIROKO TABUCHI, The New York Times

Published: July 10, 2013

The stricken nuclear power plant at Fukushima has probably been leaking contaminated water into the ocean for two years, ever since an earthquake and tsunami badly damaged the plant, Japan’s chief nuclear regulator said on Wednesday.

…

Mr. Tanaka said that the evidence was overwhelming.

“We’ve seen for a fact that levels of radioactivity in the seawater remain high, and contamination continues – I don’t think anyone can deny that,” he said Wednesday at a briefing after a meeting of the authority’s top regulators. “We must take action as soon as possible.

…

The struggle to seal the plant has raised questions about the government’s push to restart Japan’s other nuclear power stations, which were shut down in the wake of the Fukushima disaster. Some critics have said that the work of certifying and reopening other plants will distract from the cleanup at Fukushima. To allay public fears, the government has promised that restarts will be authorized only for reactors that pass rigid new standards that took effect this month.

Four utilities across Japan have applied to restart a total of 10 reactors, applications that must now be assessed by the nuclear regulator with a staff of just 80 people. Tokyo Electric has said that it intends to apply to restart two of the seven reactors at a power plant on the coast of the Sea of Japan. That workload may leave the agency with few resources to devote to monitoring the messy cleanup at Fukushima.

Fukushima Plant Operator Intends to Restart Reactors Elsewhere

By HIROKO TABUCHI, The New York Times

Published: July 2, 2013

The operator of the stricken Fukushima Daiichi nuclear power plant said Tuesday that it would ask regulators to allow it to restart two reactors at a separate site in eastern Japan, even as problems with the company’s cleanup in Fukushima continue to multiply.

…

The Tokyo Electric Power Company, known as Tepco, said it would soon apply to restart two of the seven reactors at its Kashiwazaki-Kariwa plant, the world’s biggest nuclear power station by capacity. That plant, about 140 miles northeast of Tokyo, was not affected by the earthquake and tsunami that wreaked havoc at Fukushima Daiichi, but Kashiwazaki-Kariwa does sit atop fault lines and was damaged in a 2007 quake caused by another fault.

…

The company says it needs to get the reactors back online to stem the losses it has suffered since the reactor meltdowns at Fukushima.

It is unclear if Tepco will face more scrutiny than other utilities; some experts have warned that Tepco is overwhelmed by the difficult cleanup at Fukushima. Recent leaks of contaminated water revealed major flaws in the company’s storage of the tons of radioactive water that is generated daily as groundwater flows into damaged reactor buildings, adding to a string of mishaps.

Fresh trouble on Tuesday underscored the precarious cleanup efforts. A small fire broke out in a waste pile near plant incinerators, the company said. Firefighters extinguished the flames an hour later, and Tepco said there were no injuries and no increase in radiation levels, but the cause of the fire, which damaged an area of about 45 square feet, was under investigation.

…

The seismic faults running underneath the Kashiwazaki-Kariwa site could be a hurdle in winning local approval. Tepco has not said when it might apply to restart the plant’s other five reactors.Tepco says the faults have not been active for at least 120,000 years, and that it has made the necessary fortifications at the Kashiwazaki-Kariwa plant to withstand quakes.

Tepco also says its finances have been crippled by the compensation it is paying to the victims of the Fukushima disaster, which at one point had displaced more than 100,000 people. The power company was effectively nationalized last year to help pay for the mounting claims.

Tepco’s bottom line has also been damaged by the costs of the cleanup, as well as by expensive imports of fuel for the conventional power stations that now provide most of the power to the Tokyo region.

Steam Leak

Steam Detected at Damaged Fukushima Reactor

By HIROKO TABUCHI, The New York Times

Published: July 18, 2013

A damaged reactor at the Fukushima Daiichi nuclear power plant suddenly began releasing steam again, but the operator of the plant said Thursday it did not appear to be a result of renewed nuclear reactions – a worst-case situation that could lead to a large new release of radioactive materials.

…

Tepco said it based its conclusion that there was no new chain reaction at Reactor No. 3 on its failure to find xenon, a byproduct of fission that lingers for only a few hours and would be an indication of new nuclear activity. Tepco also said the temperature remained stable.

…

Video images seemed to show less steam on Thursday evening, but after sundown it became too dark to accurately check for any vapor, Masayuki Ono, acting general manager of Tepco’s nuclear power and plant siting division, said at a news conference.

…

The No. 3 reactor’s damaged core, like the cores of two other crippled reactors at the site, is being cooled by water that is pumped into the reactor, filtered and recycled. Among the recent mishaps at the site, the cooling system for the reactor shut down for hours in April. Tepco later said a rat had somehow short-circuited a vital switchboard, possibly by gnawing on cables.

(h/t Susie Madrak @ Crooks & Liars)

Admissions

Fukushima Plant Admits Radioactive Water Leaked To Sea

By MARI YAMAGUCHI, Associate Press

07/22/13 12:29 PM ET EDT

Company spokesman Masayuki Ono told a regular news conference that plant officials have come to believe that radioactive water that leaked from the wrecked reactors is likely to have seeped into the underground water system and escaped into sea.

…

TEPCO had persistently denied contaminated water reached the sea, despite spikes in radiation levels in underground and sea water samples taken at the plant. The utility first acknowledged an abnormal increase in radioactive cesium levels in an observation well near the coast in May and has since monitored water samples.

…

Ono said that an estimated 1,972 plant workers, or 10 percent of those checked, had thyroid exposure doses exceeding 100 millisieverts – a threshold for increased risk of developing cancer – instead of the 178 based on checks of 522 workers reported to the World Health Organization last year.

Fukushima Problems Escalating, Radioactive Water Going into Pacific

Yves Smith, Naked Capitalism

Monday, July 29, 2013

I find several things to be troubling. First is that the radioactivity is apparently getting into the ocean via groundwater. Have there been any reports on the extent of the groundwater contamination? Even if Tepco could wave a magic wand and stop the leaking now, you’d still have continuing effects from the contaminated groundwater then contaminating the ocean (yes the main effects will be local, such as on local fish, but still…).

Second is that the concentration of radioactivity in the trench water has not fallen much in two years despite the leakage. Shouldn’t the impact of the leak be to reduce the level of radioactivity in the trench water? If this was an osmotic type-process, you’d expect to see the radioactivity of water in the trench fall as the radioactivity of the water on the other side rose. And if this is a straight leak (radioactive water goes into clean water, no flowback), wouldn’t you see pressure and/or water levels in the trench falling (as in why would it take these guys so long to figure this out?)

Third is that Tepco “hopes” to fix the problem by (per the Japan Times) by “building a wall out of liquid glass between the reactors and the sea” to isolate the radioactive water and then removing it. “Hopes” is one of those formulations in Japanese that often refers to aspirations rather than plans. Does anyone know if a process like this has ever been implemented successfully?

The second problem came to light last week, but appears to have gone largely unnoticed in the West. Tepco has been using water to cool the No. 1 reactor. It’s running out of storage space for the contaminated water. It promises to clean it up some before discharging it into the ocean.

Fukushima clean-up turns toxic for Japan’s Tepco

By Antoni Slodkowski and Mari Saito, Reuters

Tue Jul 30, 2013 5:12pm EDT

The inability of the utility, known as Tepco, to get to grips with the situation raises questions over whether it can successfully decommission the Fukushima Daiichi plant, say industry experts and analysts.

“They let people know about the good things and hide the bad things. This culture of cover up hasn’t changed since the disaster,” said Atsushi Kasai, a former researcher at the Japan Atomic Energy Research Institute.

…

“They had said it wouldn’t reach the ocean, that they didn’t have the data to show that it was going into the ocean,” said Masashi Goto, a former nuclear engineer for Toshiba Corp who has worked at plants run by Tepco and other utilities.

…

A worker on the site spotted steam rising from the No. 3 reactor building, but Tepco has only been able to speculate on its cause. In March, a rat shorted a temporary switchboard and cut power for 29 hours that was used to cool spent uranium fuel rods in pools.

…

Workers have built more than 1,000 tanks to store the mixed water, which accumulates at the rate of an Olympic swimming pool each week.

With more than 85 percent of the 380,000 metric tons of storage capacity filled, Tepco has said it could run out of space.

The tanks are built from parts of disassembled old containers brought from defunct factories and put together with new parts, workers from the plant told Reuters. They say steel bolts in the tanks will corrode in a few years.

Tepco says it does not know how long the tanks will hold. It reckons it would need to more than double the current capacity over the next three years to contain all the water. It has no plan for after that.

(h/t Susie Madrak @ Crooks & Liars)

Japan Admits Radioactive Water At Fukushima Plant Is An ‘Emergency’

By: DSWright, Firedog Lake

Monday August 5, 2013 9:28 am

Japan’s Nuclear Regulatory Authority has admitted, despite earlier obfuscations, that it can no longer contain radioactive waste from the troubled Fukushima nuclear power plant. Radioactive water is seeping into the ocean and providers and regulators can only come up with temporary solutions to the contamination problem.

…

This is yet another mark against Tepco’s and the Japanese government’s secretive practices. The Japanese government’s and Tepco’s refusal to brief their partners, notably the United States, during the Fukushima nuclear crisis contributed to the failure of the plant, and since then the government has played misdirection games with journalists and concerned citizens seeking more information.

…

So now that the contaminated water has breached the barrier will Tepco finally come clean on the situation in Fukushima? Or should the world go back to taking Tepco’s word that everything is being handled without incident? What could possibly go wrong?

Exclusive: Japan nuclear body says radioactive water at Fukushima an ’emergency’

By Antoni Slodkowski and Mari Saito, Reuters

Mon Aug 5, 2013 1:38pm EDT

This contaminated groundwater has breached an underground barrier, is rising toward the surface and is exceeding legal limits of radioactive discharge, Shinji Kinjo, head of a Nuclear Regulatory Authority (NRA) task force, told Reuters.

…

“If you build a wall, of course the water is going to accumulate there. And there is no other way for the water to go but up or sideways and eventually lead to the ocean,” said Masashi Goto, a retired Toshiba Corp nuclear engineer who worked on several Tepco plants. “So now, the question is how long do we have?”

…

The admission on the long-term tritium leaks, as well as renewed criticism from the regulator, show the precarious state of the $11 billion cleanup and Tepco’s challenge to fix a fundamental problem: How to prevent water, tainted with radioactive elements like cesium, from flowing into the ocean.

An Annual Reminder.

Echo… echo… echo… Pinch hitting for Pedro Borbon… Manny Mota… Mota… Mota…

You may remember my brother the activist.  I keep trying to get him to post, but he’s shy and busy.  He sent me this yesterday and I thought I’d share it with you.

I need to add that he’s a great admirer of James Carville’s political savvy (though not his policies) and one story he likes to tell is how during the height of Monica-gate Carville was on one of the Talking Head shows and made a point about how important it is to stay on message.  Carville then proceeded to demonstrate his gift by working the phrase “Cigarette Lawyer Ken Starr” 27 times in the next 30 seconds.- ek

The date – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 – August 6, 2001 needs to be as well known to Joe and Jane American as September 11, 2001.

Presidential Daily Briefing of August 6, 2001 PDB

Declassified and Approved for Release, 10 April 2004

Presidential Daily Briefing: August 6, 2001 – Bin Laden Determined to Strike in U.S.

Clandestine, foreign government, and media reports indicate Bin Ladin since 1997 has wanted to conduct foreign terrorist attacks on the U.S. Bin Ladin implied in U.S. television interviews in 1997 and 1998 that his followers would follow the example of World Trade Center bomber Ramzi Yousef and “bring the fighting to America.”

Presidential Daily Briefing: August 6, 2001 – Bin Laden Determined to Strike in U.S.

After U.S. missile strikes on his base in Afghanistan in 1998, Bin Ladin told followers he wanted to retaliate in Washington, according to a [deleted] service.

Presidential Daily Briefing: August 6, 2001 – Bin Laden Determined to Strike in U.S.

An Egyptian Islamic Jihad (EIJ) operative told an [deleted] service at the same that Bin Ladin was planning to exploit the operative’s access to the U.S. to mount a terrorist strike.

Presidential Daily Briefing: August 6, 2001 – Bin Laden Determined to Strike in U.S.

FBI information since that time indicates patterns of suspicious activity in this country consistent with preparations for hijackings or other types of attacks, including recent surveillance of federal buildings in New York.

Presidential Daily Briefing: August 6, 2001 – Bin Laden Determined to Strike in U.S.

The FBI is conducting approximately 70 full field investigations throughout the U.S. that it considers Bin Ladin-related. CIA and the FBI are investigating a call to our Embassy in the UAE in May saying that a group of Bin Ladin supporters was in the U.S. planning attacks with explosives.

So Vice President Dick, tell me again how the REPUBLICANS WILL KEEP US SAFE?

So Senator McSame, tell me again how invading and occupying IRAQ has helped the U.S. hunt down BIN LADEN?

I’m printing my own bumper stickers filled with images from 9-11 and this text-

“I don’t think anybody could have predicted that these people would take an airplane and slam it into the World Trade Center”- Condoleezza Rice, National Security Advisor

“All right. You’ve covered your ass now.”- George W. Bush