Tag Archive: Banking giant HSBC ‘a criminal enterprise’


Environmental

‘Shameful’ plastic waste to be tackled by government

Lord Taylor reveals Defra is considering agreement with councils to drive plastic recycling

A plastic recycling bin full of bottles

Government is working on plans to reduce the amount of plastic waste that goes to landfill. Photograph: MASH/Getty

The government will call on councils and businesses to beef up plastic recycling capacity and better realise the financial value arising from the hundreds of thousands of tonnes of waste plastics discarded each year.

In a speech to be delivered at the headquarters of Recoup, a charity that promotes and supports plastic recycling initiatives, Defra minister Lord Taylor of Holbeach will argue that waste plastics represent one of the easiest and most cost-effective areas for the UK to meet its binding recycling targets.

Describing the continued disposal of plastic bottles and other plastic products to landfill as “shameful”, Taylor will confirm that government figures show how last year around 240,000 tonnes of plastic bottles were sent to landfill by households with access to kerbside plastic recycling collection – equivalent to nearly half of all bottles used.

He will add that the plastic bottles sent to landfill would have been worth around £91m if they had been recycled.

Last month’s budget set a new target for plastic recycling of 42 per cent by 2017, and Taylor will argue that the best way to meet the target will be to make “quick progress” on recycling plastic bottles.

“Over half a million tonnes of plastic are used each year to provide us with bottles for drinks, shampoo and kitchen cleaners, yet half of this ends up at the dump,” he will say. “The vast majority of these bottles could easily be recycled, and this shocking waste is costing the economy millions of pounds. I want to see a major push to end this sorry state, with businesses, councils and householders all doing their bit to address the problem.”

Defra is working with Recoup, the advisory committee on packaging and industry, to explore the possibility of a “responsibility deal” to help raise awareness among households and businesses on the steps they can take to help increase plastic bottle recycling.

A spokeswoman for Defra told BusinessGreen the talks were at an early stage and the department was considering a number of options, including a package of voluntary targets for the recycling industry similar to those adopted by supermarkets to tackle waste levels under the Courtauld Agreement.

The department also indicated that any deal could emulate the successful Metal Matters campaign, which increased recycling of drinks cans by 21 per cent through leafleting households in a selection of areas.

In addition, a number of councils are currently running trials looking at how recycling incentive schemes, such as those run by US firm RecycleBank, which provide households with reward points based on how much they recycle, can help drive up recycling rates. The government is supportive of the model and keen to see more trials rolled out.

However, the latest speculation about a new voluntary agreement on plastic recycling is unlikely to appease some recycling firms, which have criticised the government’s waste strategy and accused ministers of failing to take a sufficiently robust legislative approach to improving recycling rates and driving investment in new recycling capacity.

Japanese town to build dolphin zoo near site of annual cull

Taiji defies international criticism over cull and plans to populate 69-acre mammal park with dolphins and whales captured nearby

Japanese fishermen riding a boat loaded with slaughtered dolphins at acove in Taiji harbour

Japanese fishermen aboard a boat loaded with dolphins slaughtered at a cove in Taiji harbour. Photograph: AFP/Getty Images

It sounds like it ought to be a sick joke. But in the town made infamous for its annual slaughter of hundreds of dolphins, tourists will now be able to swim and play with the mammals in a zoo near where the cull takes place.

Taiji, featured in the Oscar-winning documentary The Cove, is to build a whale zoo. Yet despite the move, officials say the cull will continue.

Local media reports say the picturesque town on Japan‘s Pacific coast plans to populate the proposed 69-acre marine mammal park with bottlenose dolphins and pilot and other small whales caught nearby.

The town, in the Higashimuro district of Wakayama, has been the target of international criticism for almost a decade over the hunt, in which up to 2,000 animals are killed for their meat or sold to aquariums and marine parks.

The meat from a single animal can fetch up to 50,000 yen (£390), but aquariums have paid more than 10m yen for certain types.

Pressure to end the cull intensified after the 2009 release of The Cove. In order to make the film, directed by Louie Psihoyos, the crew broke into the fenced-off bay and installed hidden cameras to capture footage of the hunt.

Taiji is one of four Japanese towns that hunts small cetaceans in coastal waters, but has been the focus of criticism because of the way fishermen capture and kill their prey. Hunters confuse the animals by banging metal poles on the side of their boats and then herd them into a cove before attacking them with spears and knives.

Many of the residents who proposed the whale park realise the mammals are more valuable to the town’s economy alive than dead, and only a handful of fishermen in Taiji, a town of 3,500, are involved in the slaughter.

During the most recent cull season, which ran from September to March, 928 dolphins were caught, according to the local fisheries authorities.

Outside a small number of coastal communities, few Japanese people eat dolphin meat, which tests have shown contains high levels of mercury.The government, which allows about 20,000 dolphins to be killed each year, acknowledges that the meat is contaminated but says it is not dangerous unless consumed in large quantities.

Construction of the zoo is not expected to begin for three to five years while authorities try to secure funding and settle rights issues with fishermen who cultivate pearls and other marine products in the area. The zoo will feature beaches and mudflats, with its oceanside entrance in Moriura Bay closed off by a 430-metre net. “We want to send out the message that the town is living together with whales,” Jiji Press quoted Taiji’s mayor, Kazutaka Sangen, as saying.

He said the construction of the zoo would not coincide with an end to the dolphin hunt. “We will continue hunting dolphins and establish Taiji as a town of whales, however much criticism we get from abroad,” he told the Asahi Shimbun newspaper.

While The Cove drew international praise for its daring attempt to expose the bloody reality of Taiji’s dolphin hunt, fishermen and officials said the film was deliberately misleading and ignored the town’s historical and cultural attachment to whaling.

The movie made its Japanese debut at the 2011 Tokyo international film festival before going on general release. Several cinemas in Japan decided not to show it, however, after ultra-nationalists threatened to disrupt screenings.

Psihoyos later sent Japanese-language copies of the movie to every household in Taiji with the help of a local ocean conservation group. The American director said the film was intended as a “love letter to the people of Taiji”.

Fukushima owner saved from collapse by Japanese government

Japan agrees to 1tn yen injection for Tepco, hit by compensation claims and decontamination costs after nuclear plant’s meltdown

Yukio Edano

The Japanese trade and industry minister, Yukio Edano, announces an effective government takeover of Tepco. Photograph: Jiji Press/AFP/Getty Images

Tokyo Electric Power (Tepco), the company at the centre of Japan’s worst-ever nuclear accident, has been saved from collapse after the government in effect nationalised the firm by agreeing to inject 1 trillion yen ($12.5bn) in fresh capital.

Japan‘s biggest utility has received at least 3.5tn yen in state support since three reactors at the Fukushima Daiichi nuclear power plant went into meltdown after being hit by a powerful tsunami on 11 March last year.

The trade and industry minister, Yukio Edano, said the capital injection was needed to ensure the utility company could continue to supply electricity to 45 million people, including residents of Tokyo.

“Without the state funds, [Tepco] cannot provide a stable supply of electricity and pay for compensation and decommissioning costs,” Edano said after approving what amounts to a state takeover of the firm.

The total cost of the disaster, which last weekend led to the closure of the country’s last working nuclear reactor, is estimated at $100bn.

Tepco faces compensation claims totalling 5tn yen from the tens of thousands of people who have been driven from their homes by radiation leaks.

The task of decontaminating the area affected by radiation and decommissioning the plant is expected to take decades.

Under the 10-year restructuring plan, the government will acquire more than half of Tepco’s shares, with the option of increasing its stake to more than two-thirds if the company fails to reach its restructuring targets.

In return for the taxpayer bailout, Tepco plans to reduce costs by 3.7tn yen over the next 10 years and cut a 10th of its workforce. It will also need government approval to increase household electricity bills and restart nuclear reactors that pass stress tests introduced in the wake of the disaster.

The plan has already prompted personnel changes amid criticism of Tepco’s handling of the disaster and evidence that it played down the risk posed by earthquakes and tsunamis.

The current chairman, Tsunehisa Katsumata, will be replaced by Kazuhiko Shimokobe, a lawyer selected by the bailout fund. Naomi Hirose, a Tepco managing director who is overseeing the firm’s response to the accident, has been promoted to president.

“Under the new management, I urge the firm to build a new corporate culture, listen to the victims, to customers and to society, and start actively releasing information,” Edano said.

Court denies Japanese whalers’ appeal over US group

by Staff Writers
Los Angeles (AFP)

 

A US judge refused Thursday to restrain a US-based environmental group from disrupting the activities of Japanese whalers, allegedly with violence.

Judge Richard Jones denied a request for a preliminary injunction sought by Japanese whalers against the Sea Shepherd Conservation Society, which is based in northwestern state of Washington.

The whalers sought a court order preventing the Sea Shepherd and its founder Paul Watson “from engaging in physical attacks on plaintiffs’ vessels in the Southern Ocean,” referring to the ocean encircling Antarctica.

Plaintiffs included the Institute of Cetacean Research, Kyodo Senpaku Kaisha, Ltd., Tomoyuki Ogawa (“Captain Ogawa”), and Toshiyuki Miura (“Captain Miura”).

“Over the past few years, defendants have engaged in repeated, relentless violent attacks against plaintiffs in the Southern Ocean,” read the injunction request, filed in Seattle.

These range “from ramming vessels, attempting to disable plaintiffs’ ships by dragging fouling ropes in their path, firing acid-filled glass projectiles at plaintiffs’ vessels and their crew and launching incendiary devices against the vessels and crew, exposing them to risk of fire and explosion.”

This conduct “endangers the safety of the vessels and the Masters, crew, and researchers on board and is in violation of international and domestic law, let alone any rational standard of human conduct,” they said.

In their Seattle court submission, the whalers said they were “entitled to be free from attack by what are essentially self-proclaimed pirates with a base in the state of Washington.”

But rejecting their request, the judge said: “The Court hears argument of counsel and makes a tentative ruling denying the motion for preliminary injunction,” adding that a full judgment will be issued at a later date.

Last month Japan’s Fisheries Agency said anti-whaling activists threw paint and foul smelling acid at a whaling ship in the Antarctic ocean in a fresh bid to halt the annual hunt, officials said.

Two boats belonging to Sea Shepherd approached the Japanese whaling vessel Yushin Maru No. 2 (YS2) and launched 40 bottles containing paint and butyric acid, the agency said.

The Japanese whaling fleet, led by the 720-tonne Yushin Maru, was seen leaving the Japanese port of Shimonoseki on December 6 for the annual hunt, with security measures beefed up after clashes in previous years.

Their mission is officially said to be for “scientific research,” with the fleet aiming to catch around 900 minke and fin whales, according to a plan submitted by the government to the International Whaling Commission.

Related Links
Follow the Whaling Debate

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Cyber Space

Twitter Resists Subpoena to Release User’s Data Without Warrant

By Jeremy Kirk, IDG-News-Service:Sydney-Bureau    May 9, 2012 8:22 am

Twitter Resists Subpoena to Release User's Data Without WarrantTwitter is contesting a court order requiring it to turn over private data on a user charged with disorderly conduct during the Occupy Wall Street protests in New York last year.

On Monday, the company filed a memorandum in New York’s Criminal Court, asserting that users own their content and that it may be unconstitutional to request it without a warrant.

The closely-watched case involves Twitter user Malcolm Harris, who has been charged along with several hundred others for allegedly marching onto the roadway of the Brooklyn Bridge on Oct. 1.

Prosecutors want Harris’ tweets between Sept. 15 and Dec. 31, 2011, in order to refute an “anticipated defense” that police led or escorted him onto the bridge’s road, according to court documents.

Twitter was served with a subpoena on Jan. 26 ordering it to turn over the information, citing section 2703 of the Stored Communications Act. The Act requires a service provider to disclose certain kinds of electronic communications without a warrant.

Twitter told Harris of the subpoena on Jan. 30, and Harris filed a motion to quash it. A judge denied the motion on April 20, ruling that Twitter’s privacy policy and terms of service mandate “that the tweets the defendant posted were not his” and that Harris did not have a “proprietary interest.”

Twitter is sticking with Harris. In its memorandum, Twitter said the SCA allows a court to quash an order that causes an “undue burden” on a service provider.

In its arguments, Twitter contended that its terms of service mandate that users retain the rights to their content. It also argued that the SCA has been found to violate the constitutional right against unlawful search and seizure since in some instances it requires the disclosure of information without a search warrant.

Twitter Resists Subpoena to Release User's Data Without WarrantThe April 20 ruling denying Harris’ motion cited a U.S. Supreme Court case in which it was found bank customer records belonged to the bank and were not owned by the customer.

But the court did note that New York courts had not addressed whether a criminal defendant had “standing” to quash a subpoena “issued to a third-party social networking service.”

Twitter sought to distinguish itself from banks, arguing that “unlike bank records, the content that Twitter users create and submit to Twitter are clearly a form of electronic communication that, accordingly, implicates First Amendment protections as well as the protections of the SCA.”

Ben Lee, Twitter’s legal counsel, said in an email statement that the company’s terms of service make “absolutely clear” that users own their content. “Our filing with the court reaffirms our steadfast commitment to defending those rights for our users,” he said.

The legal fight is being monitored for its potential impacts. Aden Fine, a senior staff attorney with the American Civil Liberties Union, wrote in a blog post that Twitter should be applauded for standing up for Harris since internet companies represent an important line of defense for users’ free speech rights.

“This is a big deal,” Fine wrote. “Law enforcement agencies — both the federal government and state and city entities — are becoming increasingly aggressive in their attempts to obtain information about what people are doing on the Internet.”

Send news tips and comments to jeremy_kirk@idg.com

FTC Seeks to Recover $52.6 Million in Alleged Phone Cramming Charges

By Grant Gross, IDG News

TFTC Seeks to Recover $52.6 Million in Alleged Phone Cramming Chargeshe U.S. Federal Trade Commission is seeking a civil court contempt ruling against the largest third-party billing vendor in the U.S., alleging that it placed more than $70 million in unauthorized charges on telephone bills in violation of a previous court order.

The FTC is seeking to recover $52.6 million from Billing Services Group, but BSG denied the agency’s charges, saying the FTC is targeting the wrong company. The FTC is seeking to recover the amount that the agency alleges the company billed consumers and failed to refund, the agency announced Tuesday.

The FTC accused BSG of cramming unauthorized charges on nearly 1.2 million telephone lines on behalf of a serial crammer.

Information in an FTC motion against BSG, filed in April in U.S. District Court for the Western District of Texas, comes from a 2010 investigation by the U.S. Federal Bureau of Investigation into Alternate Billing, a Minnesota company that was formerly a BSG client, BSG said in a statement.

BSG defended itself by saying it provides legitimate third-party billing services for telephone customers and vendors. Alternate Billing and related companies were among its customers from 2006 to 2010, the FTC alleged.

The FTC’s motion “represents an incomplete and inaccurate representation of the facts and leaps to false conclusions,” BSG said in a statement. “Apparently, the FTC’s view is that, because BSG settled litigation 13 years ago, BSG is liable for contempt whenever a service provider is able to evade the compliance measures implemented by BSG, regardless of BSG’s diligence and good faith. The bottom line is that the FTC is trying to blame BSG for the acts of another party.”

No one answered the phone Tuesday afternoon at a phone number associated with Alternate Billing. The FBI investigation into Alternate Billing is ongoing, according to a spokeswoman for the agency.

BSG “cooperated fully” with the FBI investigation into Alternate Billing, BSG said in its statement. “To assert that BSG would have had any unique insight into Alternate Billing’s operations that would have led it to suspect cramming is ridiculous,” the company said.

The Charges

The FTC alleged that BSG has violated the terms of a 1999 settlement with the agency that prohibits unauthorized billing and billing for vendors that fail to disclose the terms of their services. The charges were for so-called enhanced services, such as voicemail and streaming video, that consumers never authorized, the FTC alleged.

“BSG made it possible for con artists to steal people’s hard-earned money by placing charges on phone bills for services they never ordered or used,” David Vladeck, director of the FTC’s Bureau of Consumer Protection, said in a statement. “Under previous federal court orders, BSG cannot profit from the fraud of others and then deny responsibility for the harm they made possible.”

In its contempt motion, the FTC alleged that BSG failed to investigate the highly deceptive marketing for the services or whether consumers even used them. BSG kept billing for these services despite “voluminous” complaints from consumers and even after some major telephone companies refused to do so, the FTC alleged in its motion.

From 2006 through 2010, BSG billed consumers for nine crammed “enhanced services,” including three voicemail services, one streaming video service, two identity theft protection services, two directory assistance services, and one job skills training service, the FTC alleged.

BSG billed tens of thousands of consumers for voicemail boxes each month from July 2009 through March 2010, but consumers used only 209 mailboxes during that time, the FTC alleged. BSG also billed more 250,000 consumers for a streaming video service, but only 23 total movies were streamed, some of them by the crammers’ employees, the agency alleged.

BSG billed consumers more than $30 million for the voicemail services and more than $12 million for the video service, the FTC alleged.

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant’s e-mail address is grant_gross@idg.com.

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Whistle Blowers

Banking giant HSBC ‘a criminal enterprise’

Whistleblower makes damning case in video interview

The global banking giant HSBC is a “criminal” operation, charges a former officer for the company’s southern New York region in a video interview with WND.

John Cruz, a former vice president and relationship manager, has turned over to WND more than 1,000 pages of documents, including customer account ledgers for dozens of companies through which, he charges, the financial institution was laundering money each month.

 Cruz told WND that as a relationship manager, it was his responsibility to look up various accounts in the HSBC computer system and visit the account holders in person to offer additional banking products and services.

“I pulled these documents because I thought they were evidence of suspicious activity taking place,” Cruz affirmed when presented by WND with various HSBC computer ledgers of customer accounts. “These same documents I brought to bank security and my managers in the bank.”

To his surprise, HSBC management and security did not welcome his reports of suspicious activity.

“My managers told me I was crazy and I didn’t know what I was talking about,” he said. “They told me it was none of my business what goes on in transactions. But that’s my job.”

WND showed Cruz the HSBC account ledger for a business named United Express, as seen redacted in Exhibit 1 below:

Read Full Article Here

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Activism

From Coal to Foreclosures, Bank of America Faces Protest at Charlotte Shareholders Meeting

Published on May 9, 2012 by

DemocracyNow.org – Occupy Wall Street protesters, environmental activists, and struggling homeowners are converging in Charlotte today for a protest outside Bank of America’s annual shareholder meeting. The protesters are calling attention to the bank’s involvement in the financial crisis, its support for the coal industry and its long record of alleged foreclosure abuses. The rally marks a test run for activism targeting September’s Democratic National Convention, which will be held in Charlotte. The city recently enacted broad police powers to stop and search anyone carrying a backpack, purse or briefcase with the intent to conceal anything on a long list of prohibited items, ranging from weapons to markers to bicycle helmets. “Folks are coming to Charlotte to stand their ground against the predatory practices of Bank of America,” says Rachel LaForest of the Right to the City Alliance, a national coalition of community groups that is bringing roughly 175 residents to Charlotte who have been evicted by Bank of America. “We’re coming to their shareholders meeting and to say: ‘This is what your practices have done to our lives.’ We’re entering into the space to become decision makers and ensure this stops.” We’re also joined by Rebecca Tarbotton, executive director of Rainforest Action Network, which is calling on Bank of America, the largest financier of the coal industry, to transition its investments out of coal and toward energy efficiency and renewable energy. “Bank of the America is the lead [U.S.] financier of coal — the largest source of greenhouse gas emissions that cause climate change. We’re here to say to Bank of America: You need to get out of coal if you’re serious about this country transitioning into renewable energy.”

For additional reports on this case, or to watch the complete independent, weekday news hour, please visit http://www.democracynow.org.

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Psy – Ops

I contend that this story is just the tip of the iceberg into the US government’s black operations to further the Patriot Act, funding for Homeland Security and the TSA, and to keep intensity up for the so called War on Terror.

Respected lawyer and community leader, Kurt Haskell, has nothing to gain from pointing his finger at the federal government. He witnessed the underwear bomber, Umar Farouk Abdulmutallab, being whisked past security and led onto NorthWest Airlines flight 253, by a well-dressed man with an American accent- all without the passenger’s proper visa and passport documentation. What the news piece doesn’t mention is that the State Dept did indeed put Mutallab on the plane, at the behest of “an unnamed US intelligence agency.” Undersecretary Patrick F. Kennedy (Detroit news article was removed from web!).

This is why we are being groped, molested, and body scanned at the airport by the TSA! Because the government claims the underwear bomber is a real threat! Stand up America- the politicians say our rhetoric is dangerous. Maybe the government itself is terribly dangerous….

These video clips may contain copyrighted material. Such material is made available for educational purposes only. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law.

Red Flag

Fake War on Terror: Underwear Bomber 2.0 was CIA Double Agent

Scott Shane and Eric Schmitt
The New York Times

The would-be suicide bomber dispatched by the Yemen branch of Al Qaeda last month to blow up a United States-bound airliner was actually an intelligence agent for Saudi Arabia who infiltrated the terrorist group and volunteered for the suicide mission, American and foreign officials said Tuesday.

In an extraordinary intelligence coup, the double agent left Yemen, traveling by way of the United Arab Emirates, and delivered both the innovative bomb designed for his air attack and critical information on the group’s leaders to the C.I.A., Saudi and other foreign intelligence agencies.

After spending weeks at the center of the terrorist network’s most dangerous affiliate, Al Qaeda in the Arabian Peninsula, the agent provided critical information that permitted the C.I.A. to direct the drone strike on Sunday that killed Fahd Mohammed Ahmed al-Quso, the group’s external operations director and a suspect in the bombing of the American destroyer Cole in Yemen in 2000.

He also handed over the bomb, designed by the group’s top explosives expert to be invisible to airport security, to the F.B.I., which is analyzing its properties.

Officials said the agent, whose identity they would not disclose, works for the Saudi intelligence service, which has cooperated closely with the C.I.A. for several years against the terrorist group in Yemen. He operated in Yemen with the full knowledge of the C.I.A., but not under its direct supervision, the officials said.

The agent is now safe in Saudi Arabia, officials said. The bombing plot was kept secret for weeks by the C.I.A. and other agencies because they feared retaliation against the agent and his family.

Officials said Tuesday night that risk has now been “mitigated,” evidently by moving both the agent and his relatives to safe locations.

A senior American official said the device was sewn into “custom fit” underwear that would have been very difficult to detect even in a careful pat-down. Unlike the device used in the unsuccessful December 2009 plot to blow up an airliner over Detroit, this bomb could be detonated in two ways, in case one failed, the official said.

The main charge was high-grade military explosive that “undoubtedly would have brought down an aircraft,” the official said.

Over the past eight months, American counterterrorism officials monitored with growing alarm a rising number of electronic intercepts and tips from informants that revealed Al Qaeda’s branch in Yemen was ramping up plots to attack the United States, possibly with a bomb-laden commercial airliner.

The ominous chatter followed months of political chaos in Yemen during which the Qaeda branch and its militant allies seized effective control over large swaths of the country, giving the terrorist group a broader base from which to plot attacks both against the Yemeni government and the United States.

Terrorist Plots, Hatched by the F.B.I.

David K. Shipler
The New York Times
Print

© Clay Rodery

The United States has been narrowly saved from lethal terrorist plots in recent years – or so it has seemed. A would-be suicide bomber was intercepted on his way to the Capitol; a scheme to bomb synagogues and shoot Stinger missiles at military aircraft was developed by men in Newburgh, N.Y.; and a fanciful idea to fly explosive-laden model planes into the Pentagon and the Capitol was hatched in Massachusetts.

But all these dramas were facilitated by the F.B.I., whose undercover agents and informers posed as terrorists offering a dummy missile, fake C-4 explosives, a disarmed suicide vest and rudimentary training. Suspects naïvely played their parts until they were arrested.

When an Oregon college student, Mohamed Osman Mohamud, thought of using a car bomb to attack a festive Christmas-tree lighting ceremony in Portland, the F.B.I. provided a van loaded with six 55-gallon drums of “inert material,” harmless blasting caps, a detonator cord and a gallon of diesel fuel to make the van smell flammable. An undercover F.B.I. agent even did the driving, with Mr. Mohamud in the passenger seat. To trigger the bomb the student punched a number into a cellphone and got no boom, only a bust.

This is legal, but is it legitimate? Without the F.B.I., would the culprits commit violence on their own? Is cultivating potential terrorists the best use of the manpower designed to find the real ones? Judging by their official answers, the F.B.I. and the Justice Department are sure of themselves – too sure, perhaps.

Carefully orchestrated sting operations usually hold up in court. Defendants invariably claim entrapment and almost always lose, because the law requires that they show no predisposition to commit the crime, even when induced by government agents. To underscore their predisposition, many suspects are “warned about the seriousness of their plots and given opportunities to back out,” said Dean Boyd, a Justice Department spokesman. But not always, recorded conversations show. Sometimes they are coaxed to continue.

Undercover operations, long practiced by the F.B.I., have become a mainstay of counterterrorism, and they have changed in response to the post-9/11 focus on prevention. “Prior to 9/11 it would be very unusual for the F.B.I. to present a crime opportunity that wasn’t in the scope of the activities that a person was already involved in,” said Mike German of the American Civil Liberties Union, a lawyer and former F.B.I. agent who infiltrated white supremacist groups. An alleged drug dealer would be set up to sell drugs to an undercover agent, an arms trafficker to sell weapons. That still happens routinely, but less so in counterterrorism, and for good reason.

“There isn’t a business of terrorism in the United States, thank God,” a former federal prosecutor, David Raskin, explained.

“You’re not going to be able to go to a street corner and find somebody who’s already blown something up,” he said. Therefore, the usual goal is not “to find somebody who’s already engaged in terrorism but find somebody who would jump at the opportunity if a real terrorist showed up in town.”

And that’s the gray area. Who is susceptible? Anyone who plays along with the agents, apparently. Once the snare is set, law enforcement sees no choice. “Ignoring such threats is not an option,” Mr. Boyd argued, “given the possibility that the suspect could act alone at any time or find someone else willing to help him.”

Typically, the stings initially target suspects for pure speech – comments to an informer outside a mosque, angry postings on Web sites, e-mails with radicals overseas – then woo them into relationships with informers, who are often convicted felons working in exchange for leniency, or with F.B.I. agents posing as members of Al Qaeda or other groups.

Some targets have previous involvement in more than idle talk: for example, Waad Ramadan Alwan, an Iraqi in Kentucky, whose fingerprints were found on an unexploded roadside bomb near Bayji, Iraq, and Raja Khan of Chicago, who had sent funds to an Al Qaeda leader in Pakistan.

But others seem ambivalent, incompetent and adrift, like hapless wannabes looking for a cause that the informer or undercover agent skillfully helps them find. Take the Stinger missile defendant James Cromitie, a low-level drug dealer with a criminal record that included no violence or hate crime, despite his rants against Jews. “He was searching for answers within his Islamic faith,” said his lawyer, Clinton W. Calhoun III, who has appealed his conviction. “And this informant, I think, twisted that search in a really pretty awful way, sort of misdirected Cromitie in his search and turned him towards violence.”

THE informer, Shahed Hussain, had been charged with fraud, but avoided prison and deportation by working undercover in another investigation. He was being paid by the F.B.I. to pose as a wealthy Pakistani with ties to Jaish-e-Mohammed, a terrorist group that Mr. Cromitie apparently had never heard of before they met by chance in the parking lot of a mosque.

“Brother, did you ever try to do anything for the cause of Islam?” Mr. Hussain asked at one point.

“O.K., brother,” Mr. Cromitie replied warily, “where you going with this, brother?”

Two days later, the informer told him, “Allah has more work for you to do,” and added, “Revelation is going to come in your dreams that you have to do this thing, O.K.?” About 15 minutes later, Mr. Hussain proposed the idea of using missiles, saying he could get them in a container from China. Mr. Cromitie laughed.

Reading hundreds of pages of transcripts of the recorded conversations is like looking at the inkblots of a Rorschach test. Patterns of willingness and hesitation overlap and merge. “I don’t want anyone to get hurt,” Mr. Cromitie said, and then explained that he meant women and children. “I don’t care if it’s a whole synagogue of men.” It took 11 months of meandering discussion and a promise of $250,000 to lead him, with three co-conspirators he recruited, to plant fake bombs at two Riverdale synagogues.

“Only the government could have made a ‘terrorist’ out of Mr. Cromitie, whose buffoonery is positively Shakespearean in its scope,” said Judge Colleen McMahon, sentencing him to 25 years. She branded it a “fantasy terror operation” but called his attempt “beyond despicable” and rejected his claim of entrapment.

The judge’s statement was unusual, but Mr. Cromitie’s characteristics were not. His incompetence and ambivalence could be found among other aspiring terrorists whose grandiose plans were nurtured by law enforcement. They included men who wanted to attack fuel lines at Kennedy International Airport; destroy the Sears Tower (now Willis Tower) in Chicago; carry out a suicide bombing near Tampa Bay, Fla., and bomb subways in New York and Washington. Of the 22 most frightening plans for attacks since 9/11 on American soil, 14 were developed in sting operations.

Another New York City subway plot, which recently went to trial, needed no help from government. Nor did a bombing attempt in Times Square, the abortive underwear bombing in a jetliner over Detroit, a planned attack on Fort Dix, N.J., and several smaller efforts. Some threats are real, others less so. In terrorism, it’s not easy to tell the difference.

David K. Shipler is the author of Rights at Risk: The Limits of Liberty in Modern America.

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[In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit, for research and/or educational purposes. This constitutes 'FAIR USE' of any such copyrighted material.]

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Politics and Legislation

Obama administration, including his czars and his closest Progressive supporters, are planning a manufactured insurgency against America. Using the media to garner both sympathy and support for his unfinished goals

The planned re-election of Obama, revolutionary style

HomelandSecurityUs.com

The Contact

It was not the proverbial 3:00 a.m. phone call, but close enough. And it was not made to the White House, but to my house, which is not white, nor is it in DC. It was about 2:30 a.m. on 25 April 2012, and the call itself was somewhat unexpected. I had anticipated the telephone call from my DHS insider much earlier the previous day, but our schedules didn’t synch up. I was traveling on an investigative assignment, while my source was in meetings all day. I had just fallen asleep, and was slumbering no more than 20 minutes when the phone rang.

In most households, a ringing phone at that time of night causes concern for everyone who hears it. In my household, it seems to surprise only my surly, 140 pound light-sleeping German Shepherd. He let out an objective grunt as I stepped over him to take the call in another room. It was “Rosebud,” the code name given my insider source.

About Rosebud

Just a little bit here about my source and his “super-secret code name.” I’ve known this government insider since 1979, when he first became a municipal patrol officer. He took a job in a bigger city and had a very successful run as a cop. Before retirement and after the events of 9/11, he was tapped by the feds, where he worked in various capacities under the umbrella of DHS. He worked his way up, and suddenly found himself in what he terms the inner sanctum of the “TEC” building. TEC, he explains, is an acronym for what he calls “The Estrogen Challenged,” which houses the upper echelon of the Department of Homeland Security. I’ll leave it at that.

As far as his code name, it originates from an incident that occurred at the end of the disco era. It is something that we both privately laugh about, but rarely ever talk about. His “code name” is known to him, me, and at the time, a young woman who has since vanished amid the glitter of disco balls and constant replays of the Bee Gees in a dark nightclub some 32 years ago, and has no “cloak and dagger” origins.

But he is real, his position serious, and his knowledge vast. Unfortunately, that’s what makes the whole situation frightening and deadly serious.

The information

It began on Wednesday, 2 May 2012 with a 45-minute interview on TruNews with Rick Wiles when I first disclosed the information I received the previous week from my source. The information I relayed “went viral,” as they say, across the internet.

To support the statements I made during that interview, I am showing my handwritten notes taken contemporaneously during our conversation. My notes consist of two pages and are, at various points,  admittedly difficult to decipher. I ask that points not be deducted for my penmanship given the time of the morning which they were taken.

According to my source, there is talk among the highest levels of the uppermost echelon of the Department of Homeland Security, which he describes as effectively under the control of Barack Hussein Obama. During this call, he said that the DHS is actively preparing for massive social unrest inside the United States. He then corrected himself, stating that “a civil war” is the more appropriate term. Certain elements of the government are not only expecting and preparing for it, they are actually facilitating it,” stated my source.

“The DHS takes their marching orders from the Obama administration, from Obama himself, but mostly from his un-appointed czars. And Jarrett, especially Valerie Jarrett. Don’t think for a minute that the administration is doing anything to stabilize events in the U.S. They are revolutionaries, and revolutionaries thrive on chaos,” he added.

My source stated that he has not seen things this bad since he began working within DHS. “It’s like they [DHS agency heads] don’t care about what the American people see or feel about what the DHS agencies are doing. They figure that if the average American will put up with being “sexually groped and nuked” just to fly, they’ll accept almost anything. “That’s why their actions are becoming more overt.  “It’s in your face and the brass actually chuckle about it” said my source.

New Information

Astounded by the information my source provided “going viral,” I spoke to him again early Sunday morning. This was a scheduled telephone call (as noted on page 2 of my notes) based on a high level meeting of DHS personnel that was scheduled for and took place in Chantilly, Virginia, on Saturday, 5 May 2012.  He hoped to provide me with more information to supplement that which he already given. Although he was not personally present, his source was. While he would not say who was at the meeting on Saturday or give its precise location, he said that the many of the names would be recognizable. He spoke to his source late Saturday night.

I contacted him on his cellular phone early Sunday morning to get the promised update.

“Geez, nice job on getting the word out about what’s really going on at DHS and in this administration,” were the first words out of his mouth, followed by “thanks a lot.” I asked him why he would be thanking me. “I just wanna’ tell you that I’m going to have to hire someone to start my car, and I’m surely not going for any rides in small planes in the immediate future,” he said with a bit of nervous laughter. “I hope no one finds out who I am or it’s going to be more than my pension I’ll have to worry about.”

“I can tell you word is getting out that people are starting to wake up, which is causing a lot of ‘pissed off brass.’  I can’t tell if they are more desperate or upset about the exposure, but the tone is starting to become a lot more tense. I hope that we’re having something to do with that,” he added.

With that, he provided me with additional information to supplement that which he already given me on 25 April. For clarity purposes, I have combined the information together from both contacts. The following information includes the updated information provided to me Sunday morning.

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Four reasons Obama’s 2012 re-election campaign had a bad week

Yahoo! News

U.S.President Barack Obama speaks about the economy while at the SUNY-Albany Nano-Fab Extension Building in Albany, New York May 8, 2012.       REUTERS/Larry Downing    (UNITED STATES - Tags: POLITICS)View PhotoREUTERS – U.S.President Barack Obama speaks about the economy while at the SUNY-Albany Nano-Fab Extension Building in Albany, New York May 8, 2012. REUTERS/Larry Downing (UNITED STATES – Tags: POL …more

If you don’t believe rigid mathematical formulas can tell you who will win a presidential election—and I don’t—you should be even more dubious about hunches divined from a stray incident or two.

So why do I have the feeling that just such an incident—OK, make it four—made last week a very bad one for President Barack Obama’s re-election prospects?

Because they connect to much bigger problems that go to the heart of the Obama campaign’s arguments for a second term. Moreover, the time to repair these problems is rapidly running out.

Let’s take the first event, which on the surface may seem ludicrous: the Empty Seats in Columbus.

Obama semiofficially launched his re-election campaign—as opposed to the hundreds of “nonpolitical” appearances he has made over the past three years—at a rally Saturday at Ohio State University. Some 14,000 supporters filled the arena—or rather, did not fill the arena. Coverage of the event focused heavily on the 4,000 empty seats, and Obama’s senior campaign adviser David Axelrod was pressed by ABC’s Jake Tapper about whether the turnout demonstrated a lack of “enthusiasm” for the president.

If that were the beginning and the end of the story, I’d be ashamed to be writing about it. Yes, advance teams try to fill halls. The founding father of such work, Jerry Bruno, always booked smaller halls so that the press would have to write that a candidate spoke to “an overflow crowd.” And yes, the press blow logistical mistakes out of all proportion. In 1988, ABC’s Sam Donaldson reported that a faulty sound system “called into question the competence of the Dukakis campaign.” (On the other hand, given that campaign, he may have been onto something.) By itself, the turnout for Obama was no big deal.

What makes those empty seats mean more are other, more substantive matters: The jobs picture for young people is especially bleak; the April unemployment rate for workers under 25 was 16.4 percent—double the overall national rate; as many as half of recent college graduates are unemployed or underemployed; younger workers have fared worse than any other age group in terms of recovering from the hammer blows of 2008.

If the president is to be re-elected, he is going to have to come reasonably close to his success with younger voters four years ago, when he won 66 percent of the vote among people between the ages of 18 and 29. It was that margin, along with a respectable (though not spectacular) turnout, that made the difference in close states like Florida and North Carolina. If the jobs outlook for new college graduates and younger workers continues to be bleak, the problem won’t be filling seats in an arena, but filling the polls in November.

Or consider the dust-up when Vice President Joe Biden, on “Meet the Press,” declared himself “absolutely comfortable” with gay marriage—a position echoed by Education Secretary Arne Duncan a day later.

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Political Tumult in Greece After Uncertain Elections

Kostas Tsironis/Associated Press

Alexis Tsipras, of Syriza, the left-wing, anti-austerity party that came in second, said Monday in Athens that he would try to form a coalition of leftist groups opposing terms of Greece’s bailout.

By and

ATHENS — Greece teetered on the verge of political chaos on Monday, with few signs that any party could form a governing coalition and the prospect of the nation leaving the euro zone looming increasingly large.

Thanassis Stavrakis/Associated Press

Greece’s conservative leader of New Democracy’s Antonis Samaras arrived at the headquarters of his party in Athens on Monday, May 7, 2012.

 Just a day after coming in a weak first in its worst showing ever in national elections, the center-right New Democracy party quickly announced on Monday that it had failed to form a governing majority. While a left-wing, anti-austerity party that placed second will now have a chance to form a coalition, many analysts say Greece is unlikely to emerge from its current crisis with a government either capable or willing to carry out the strict budget-cutting mandates of its foreign lenders.

The Greek election and ensuing political tumult showed that “it’s not clear how they can survive within the euro over the longer term,” said Kenneth S. Rogoff, a professor of economics at Harvard and a former chief economist at the International Monetary Fund. That could have grave implications for the rest of Europe.

“A Greek exit,” Mr. Rogoff said, “would underscore that there’s no realistic long-term plan for Europe, and it would lead to a chaotic endgame for the rest of the euro zone.”

On Sunday, the traditionally dominant parties, New Democracy and the Socialists, which both backed Greece’s latest loan agreement with its foreign creditors, failed to get enough votes for a majority in Parliament. Several smaller parties, whose fortunes rose on a rich harvest of protest votes, refused to join in a coalition with the larger parties.

“We did everything we could but it just wasn’t possible,” the leader of New Democracy, Antonis Samaras, said in a televised statement after failing to secure support from other political parties. Greek law gives the front-runner three days to form a government before the baton is passed to the runner-up.

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Related

Angela Merkel’s party faces ouster in German state vote

Social Democratic candidate Torsten Albig speaks to party fellows after first exit polls for the federal state elections of Germany's northern state of Schleswig-Holstein in Kiel on Sunday.Social Democratic candidate Torsten Albig speaks to party fellows after first exit polls for the federal state elections of Germany’s northern state of Schleswig-Holstein in Kiel on Sunday.

FABIAN BIMMER/REUTERS

BERLIN—Chancellor Angela Merkel’s conservatives were in danger of being ousted from power in another German state on Sunday after the opposition Social Democrats (SPD) said they wanted to form a three-way coalition with two smaller centre-left parties.

The Christian Democrats’ (CDU) vote fell to 31 per cent, their worst result in the state since 1950, but they were still just the largest party in the rural region between the Baltic and North Seas, a projection by Germany’s ARD TV network showed.

The SPD, which won 29.9 per cent in the northernmost state, said it wanted to form a coalition with the Greens and South Schleswig Party (SSW) that represents the Danish majority. The three parties would have 35 seats in the 69-seat state assembly.

Merkel’s conservatives have been voted out of power in three states in the last two years. If knocked out in the traditionally conservative region of Schleswig-Holstein the CDU would rule just seven of Germany’s 16 states ahead of the 2013 federal election, when Merkel is seeking a third term.

“She’ll probably lose another state premier and this will make things harder for her re-election campaign,” said Gero Neugebauer, political scientist at Berlin’s Free University. “She can’t be satisfied about the performance of her centre-right coalition.”

The chancellor’s resolute stance through the drama of the euro-zone crisis has left her personal popularity intact. But her national centre-right coalition has looked in jeopardy after a slump support for her junior coalition partners, the Free Democrats (FDP).

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Peter Schiff: We aren’t that far behind Greece

Published on May 4, 2012 by

The new jobs numbers are out and the unemployment rate fell to 8.1 percent. According to the US Bureau of Labor Statistics, in April 115,000 non-farm jobs were added, but at the same time 342,000 people left the labor force. In February the unemployment rate was 8.3 percent. At this rate will the US ever climb out of the jobs crisis? Peter Schiff, president of Euro Pacific Capital, joins us to take a closer look at the numbers.

Low student loan interest rates in limbo after Democrats’ bill stalls in Senate

By Daniel Strauss and Alexander Bolton

The Senate on Tuesday rejected a motion to advance legislation that would prevent student loans from doubling, sparking a fresh round of partisan finger-pointing.

President Obama and congressional Democrats accused Republicans of obstructing the bill, which was blocked along party lines. Republicans countered by noting the House recently acted on similar legislation, and said Democrats are needlessly politicizing the issue.

Democratic leaders called on presumptive 2012 Republican presidential nominee Mitt Romney to become more engaged in the debate.

“Mitt Romney says he supports what we’re trying to do. I would suggest he pick up the phone and call Sen. [Mitch] McConnell [R-Ky.] and tell him he favors what we’re trying to do,” said Senate Majority Leader Harry Reid (D-Nev.).

While both parties agree on the merits of the bill, they are miles apart on how to pay for its $6 billion price tag.

Romney has not embraced a specific proposal, but has said he does not want student loan rates to increase this year.

Sixty votes were needed to move to a debate on the legislation, but Democrats and Republicans were unable to reach a deal to prevent a GOP filibuster.

The failure leaves the Senate with an unclear path going forward on keeping the interest rates from doubling. If Congress does not act, the rate on federal student loans would rise from 3.4 percent to 6.8 on July 1.

Obama has sought to turn the issue of student loans against Republicans, but the Senate’s failure to pass its own bill will make that more challenging.

The House late last month approved legislation that would keep the interest rate stable, though Obama has threatened to veto that measure. Obama supports extending the low interest loans but opposes the House GOP offset, which would cut from a preventive healthcare fund set up by the 2010 healthcare reform law.

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Will Obama lose his presidency over the economy?

Published on May 9, 2012 by

We’ve seen around the world what an ailing economy can do to a country, from France to Greece people are growing tired of their countries’ financial troubles and have ousted their leaders over the matter. In a recent study, approximately one fourth of Fortune 500 companies paid less than 10 percent income tax, so will that affect President Obama’s chances for the 2012 election? Liz Wahl tells us more.

 

 

Abu Qatada loses extradition appeal in European court

In this April 17, 2012 file photo, Abu Qatada is driven away after being refused bail at a hearing at London’s Special Immigration Appeals Commission, which handles deportation and security cases, in London. (AP)

By REUTERS

Published: May 9, 2012 20:49 Updated: May 9, 2012 23:11

LONDON: A radical preacher accused of giving inspiration to one of the 9/11 hijackers lost a legal bid in the European courts yesterday to challenge Britain’s long-running attempts to deport him to Jordan to stand trial on terrorism charges.

Abu Qatada, once described by a Spanish judge as “Osama Bin Laden’s right-hand man in Europe,” had asked the European Court of Human Rights to refer his case to a panel of its most senior judges. The court said it turned down his request, paving the way for Britain to send him back to Jordan after a decade of legal wrangling over his fate. It gave no reasons for its refusal.

Qatada’s lawyers had argued that he risked being tortured in Jordan or being convicted using evidence extracted from others using torture. Britain reached an agreement with Jordan in 2005 to try to ensure Qatada is not mistreated if he is returned to Jordan.

“I am pleased by the European court’s decision,” said British Home Secretary (interior minister) Theresa May. “The Qatada case will now go through the British courts. “I am confident the assurances we have from Jordan mean we can put Qatada on a plane and get him out of Britain.”

However, in an embarrassment for the British government, the judges confirmed that Qatada had lodged his appeal request in time, contradicting May’s original claims that he had been too late.

His case has been a headache for successive British governments, accused by critics of not doing enough to deport Qatada.

Twice convicted in his absence in Jordan of involvement in terrorism plots, the preacher is still a national security risk, Britain says, and should be deported before London hosts the Olympic Games in July and August.

Qatada, whose real name is Omar Othman, has been in and out of jail since he was first detained without charge under British anti-terrorism laws in 2002. Britain says videotapes of his sermons were found in a German apartment used by three of the people who carried out Al-Qaeda’s Sept. 11, 2001, attacks on the United States.

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Economy

German trade booms despite EU troubles

Published on May 9, 2012 by

http://www.euronews.com/ German exports and imports both leapt to record monthly levels in March.

Exports were up by 0.9 percent – adjusted for seasonal factors – and imports rose 1.2 percent.

That bolsters hopes that Europe’s largest economy has escaped recession.

Coming on the heels of strong German industrial output and orders figures that highlights the country’s resilience to the eurozone’s deepening debt crisis.

Economists said the jump in imports also provided crumbs of comfort to Germany’s struggling peers in the euro zone.

Trade figures from France, the euro zone’s second biggest economy, showed its exports to Germany and other northern European countries increasing in March even as its sales to the crisis-stricken Mediterranean region tumbled.

The competitive German economy is profiting from the revival of global trade after a soft patch at the end of 2011.

Today’s figures support our forecast that the German economy has grown slightly at the start of the year,” said Ulrich Rondorf, an analyst at Commerzbank.

This would enable Germany to avoid a technical recession – defined as two successive quarters of contraction – as its economy shrank by 0.2 percent in October-December 2011.

Germany’s eight leading economic institutes have revised upwards their 2012 growth forecast to 0.9 percent. The government is sticking to its forecast of 0.7 percent.

Outcry Against Banking Practices with Michael Tellinger

Published on May 7, 2012 by

(www.abndigital.com)
Author, researcher and scientist, Michael Tellinger has just filed his 1,100 page notice of motion against Standard Bank in the Constitutional Court, accusing the bank of “unlawful and unconstitutional activity”. He also served the notice on the Reserve Bank and the Minister of Finance. Michael Tellinger joins ABN’s Samantha Loring in studio to give us more details.

Investors hedge against losses as Europe fears resurface

Reuters

By Angela Moon and Doris Frankel

(Reuters) – The resurgence of the euro zone’s debt woes as a dominant force in the U.S. equity market has sparked a flurry of cautious bets in the options market as investors brace for more uncertainty.

The S&P 500 may have lost only a little over 1 percent for the week, but markets have become noticeably more volatile following elections in Greece and France that changed expectations for how the euro zone will deal with long-standing debt problems.

“People are scrambling for portfolio insurance and are picking up puts and selling stock as they prepare for a further breakdown in the U.S. stock market. At this point, investors are indifferent about the health of the U.S. economy with a clear focus on the fate of Greece,” said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co Inc in New York.

The CBOE Volatility index (MXP:^VIX), Wall Street’s so-called fear gauge, rose to its highest in over two months at 21.59 earlier on Wednesday. The VIX, a 30-day risk forecast of stock market volatility conveyed by S&P 500 options, has come off its highs to 20.25, up 6.3 percent on Wednesday afternoon.

Bearish sentiment this week can be seen in the CBOE equity put-to-call ratio, which hit its most extreme level since August 2011, said Jason Goepfert, president of SentimenTrader.com in a report.

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S&P 500 flirts with two-month low before rebound

Reuters

By Angela Moon

NEW YORK (Reuters) – U.S. stocks fell for the fifth day in six on Wednesday as investors kept their focus on the turmoil in Europe, but news that Greece will receive its latest debt bailout payment helped cut losses late in the session.

In the afternoon the Nasdaq briefly turned positive and the S&P rose to break-even after news that Greece will get 5.2 billion euros in emergency aid.

The turmoil in Europe has driven Wall Street’s slide and more investors were hedging against potential further losses. The Dow fell for a sixth straight day and the S&P touched a two-month low before cutting losses.

“It’s a very difficult market to trade in. I’m advising my clients to just hedge out all the way into July because we are going to see some heightened volatility like today for awhile,” said Randy Frederick, managing director of active trading and derivatives at Charles Schwab in Austin, Texas.

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Home Prices Rise in Half of U.S. Cities as Markets Stabilize

By Prashant Gopal

Prices for single-family homes climbed in half of U.S. cities in the first quarter as real estate markets stabilized.

The median sales price increased from a year earlier in 74 of 146 metropolitan areas measured, the National Association of Realtors said in a report today. In the fourth quarter, only 29 areas had gains.

A development in Oswego, Illinois. Photographer: Daniel Acker/Bloomberg

May 7 (Bloomberg) — Michelle Meyer, a senior economist at Bank of America Merrill Lynch, talks about the U.S. economy and real estate market. She speaks with Tom Keene on Bloomberg Television’s “Surveillance Midday.” (Source: Bloomberg)

The U.S. housing market is showing signs of bottoming as improving employment and record-low mortgage rates boost demand while inventories of available properties tighten. At the end of March, 2.37 million previously owned homes were available for sale, 22 percent fewer than a year earlier, the Realtors said.

“The housing market is still depressed but it had a good quarter,” Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts, said in a telephone interview today. “We’re on the mend but it’s still something that will take two or three years before we’re back to normal.”

The national median existing single-family home price was $158,100 in the first quarter, down 0.4 percent from the first three months of 2011, according to the Realtors group.

The best-performing metro area was Cape Coral, Florida, where prices increased 28.1 percent from a year earlier. Prices rose 19 percent in Grand Rapids, Michigan; 16.9 percent in Palm Bay, Florida; and 16.6 percent in Erie, Pennsylvania.

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Oil falls to near $97 amid weak US, Europe demand

PABLO GORONDI, Associated PressHome Prices Rise in Half of U.S. Cities as Markets Stabilize
Updated 06:59 a.m., Tuesday, May 8, 2012

Oil fell to near $97 a barrel Tuesday, extending nearly a week of losses as signs of sluggish economic growth in the U.S. and Europe foreshadowed tepid demand for crude.

By early afternoon in Europe, benchmark oil for June delivery was down 87 cents to $97.07 a barrel in electronic trading on the New York Mercantile Exchange. The contract settled down 55 cents at $97.94 in New York on Monday after trading as low as $95.34 per barrel — its cheapest level this year.

In London, Brent crude was down 93 cents at $112.23 per barrel on the ICE Futures exchange.

Crude has dropped from $106 last week as indicators from major developed economies show they continue to struggle. Last week, the U.S. said factory orders fell in March while the economy added fewer jobs than expected in April. Spain said its economy slipped into recession last quarter as the unemployment rate reached 24 percent.

“While it is easy to malign the European recovery, the latest round of U.S. macroeconomic data is troubling in itself,” energy trader and consultant The Schork Group said in a report.

If the fall in oil prices continues, the cost of crude products such as gasoline should also drop, providing a potential boost for consumer spending.

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ECRI’s Lakshman Achuthan: No, I’m Not Wrong — We’re Still Headed For Recession

By Henry Blodget

Last fall, some U.S. economic data began to come in weak, and the stock market sold off. This prompted many economists and analysts to begin talking about the possibility of a new recession.

One analyst, however–Lakshman Achuthan of the Economic Cycle Research Institute–did not just talk about the possibility of one.

He said, definitively, that the U.S. was “tipping back into recession. And there’s nothing that policy makers can do to head it off.

Well, the U.S. economy did not tip back into recession. In fact, the data started coming in better-than-expected again, and the country experienced modest growth in Q4 and Q1.

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Spanish bank rescue plans moves forward

Published on May 9, 2012 by

http://www.euronews.com/ Spain is stepped up it efforts to save the country’s troubled banks with a plan to make them recognise the huge losses from the bursting of the property bubble.

The government of Prime Minister Mariano Rajoy is expected to reveal full details on Friday, but financial sources said the lenders will be told to put aside another 35 billion euros to cover bad loans.

That is on top of the 54 billion euro financial cushion already demanded in reforms announced in February.

Spain’s banks have close to 300 billion euros in total exposure to the building sector, including property seized as collateral. That is equivalent to around 30 percent of the country’s gross domestic product.

Repayment is unlikely of at least 184 billion euros worth of those loans.

Meanwhile shares in Spain’s fourth largest lender, Bankia, fell further on Wednesday ahead of the expected announcement of a 10 billion euro government bailout for the bank. It holds 10 percent of the Spanish banking system’s deposits and is the most exposed to toxic assets.

Previously Prime Minister Rajoy had said he would not put more public money into rescuing the banks but he has had to do a U-turn.

Uncertainty over the final cost of a rescue meant Spanish government bond yields broke through the psychologically important six percent level, which is considered unaffordable over the long term.

Investors have yet to be convinced as this will be the fourth banking sector overhaul in three years.

As some Spanish lenders are unlikely to be able to find the extra funds without public help, there is an increased probability that the Madrid government may have to issue more debt to bail them out.

Ben Levett, analyst at consultancy 4Cast said: “It depends what’s announced, but right now it feels like smoke and mirrors and not the cathartic moment that Spain needs. It looks more like the government has panicked and pushed something out.”

 

 

Tadawul falls on global market jitters

 

A trader monitors stocks at a Saudi bank in Dammam. (Reuters)

By KHALIL HANWARE | ARAB NEWS STAFF

Published: May 10, 2012 00:18 Updated: May 10, 2012 00:18

JEDDAH: The Kingdom’s stock exchange made its largest one-day drop in three weeks yesterday as global market jitters and volatile oil prices spurred investors to reduce their risk exposure.  

The Tadawul All-Share Index (TASI) dropped 2 percent to close at 7,221.5 points, its biggest one-day loss since April 15. The market is still up 12.52 percent so far this year.

The TASI fell along with stock markets around the world owing to heightening concern about the prospects for the euro zone, said Paul Gamble, chief economist and head of research at Jadwa Investment.

Saudi Basic Industries Corp. (SABIC) and Al-Rajhi Bank fell 1 percent each.

The insurance stocks were the worst hit yesterday as the index dropped 5.2 percent.

The value of traded shares reached SR7.87 billion.

“The ongoing failure of Greek political parties to form a new government has raised prospects of a new election and brought closer the possibility of a Greek exit from the euro zone,” Gamble added.

Jarmo T. Kotilaine, chief economist at the National Commercial Bank, said: “The swing of the European political mood away from austerity, as reflected by the anti-incumbent vote in France and Greece, has clearly intensified market perceptions of uncertainty and risk. In particular, the political stalemate in Greece and the growing frustration of especially with this, is beginning to raise existential questions about the euro zone.”

He said the possibility of a Greek exit from the euro was being openly discussed in Greece and outside.

Such a possibility in turn is heightening speculation about contagion, potentially even into major economies such as Spain and Italy, said Kotilaine.

“Should the euro zone indeed unravel, even just partially, the market disruptions would be potentially enormous even though important preventive steps have been taken to contain potential damage,” he said.

Basil Al-Ghalayini, CEO of BMG Financial Group, commented: “With the market concern at Greek instability, the Spanish government’s bail out of the third largest bank and the unknown outcome of the newly elected French leadership, the euro zone is in crisis. Considering the correlation of the Saudi market with those of major market zones, this decline is expected.”

Farouk Miah, head of equity research at NCB Capital, said: “I think its a combination of heightened worries in Europe due to the outcome of the French and Greek elections. Investors are selling out before the summer lull, as well as profit-taking from the very good Q1, 2012 performance.”

He added: “It is not surprising that speculative names are falling the most, given the lack of any fundamental story in many of those names. We continue to prefer quality names which are locally driven and defensive such as Savola and Mobily.”

 

 

Gold dips below $1,600 on euro zone uncertainty

By REUTERS

Published: May 10, 2012 00:18 Updated: May 10, 2012 00:18

NEW YORK: Gold dropped below $1,600 an ounce in heavy trading on Wednesday, nearly wiping out gains for 2012 as political uncertainty in Greece and Spanish bank worries prompted investors to sell bullion for a third straight daily decline. 

The precious metal was down more than 3.5 percent so far this week on European debt fears due to a change in the French presidency, the frail state of Spanish banks and political

gridlock in Greece.

This week’s turmoil in Europe prompted investors to unwind long positions in gold built on optimism that followed a 130-billion euro bailout deal between the EU, the IMF and Greece.

“With the fate of the euro once again hanging in the balance, investors may have also soured on gold, perhaps questioning whether they are now going to be seeing sufficient

amounts of ‘bail-out euros’ that could potentially help the precious metal find a bid,” said Edward Meir, metals analyst at INTL FCStone.

Spot gold bounced off session lows and was down 0.7 percent on the day at $1,593.81 an ounce 11:42 a.m. (1542 GMT) Bullion hit a four-month low of $1,579.30, its lowest since Jan. 3.

US gold futures for June delivery fell $10.40 to $1,594.10 an ounce, with trading volume surpassing its 30-day average for a second straight day.

The gold price has been in decline for most of the past two months, since US Federal Reserve Chairman Ben Bernanke gave no signal that the central bank would start a third round of government bond buying, or quantitative easing.

Gold’s 2012 gains totaled 14 percent in late February, but now it is up less than 2 percent on the year to date.

Gold this year had tended to trade in tandem with riskier assets such as equities and crude oil. But this week’s losses have the precious metal underperforming 2012 gains of about 9 percent in the S&P 500 stock index and nearly 6.5 percent in crude oil.

Nic Brown, Natixis’ head of commodity research, said a lack of inverse correlation between gold and perceived risky assets such as the euro suggested the metal was not attracting demand from jittery European investors.

Other precious metals were down but off their session lows. Silver fell 0.5 percent to $29.28 an ounce.

Palladium slightly outperformed gold and silver following the release of Chinese data that showed robust year-on-year growth in car sales in the world’s largest auto market.

Palladium was last down 0.1 percent on the day at $614.47 an ounce, while platinum edged down 0.5 percent at $1,496.24 an ounce.

 

 

Jordan central bank says no plan to drop dollar peg

By REUTERS

Published: May 10, 2012 00:18 Updated: May 10, 2012 00:18

AMMAN: Jordan has no plans to revalue its dinar currency or sever the currency’s peg to the US dollar and will maintain a tight monetary policy to preserve the attractiveness of dinar-denominated assets at a time of regional uncertainty, the central bank deputy governor said on Wednesday. 

“I think that the peg to the dollar has served the country well for many many years and we don’t see at this point that we need to change the regime or change the level of the Jordanian currency vis-a-vis the US dollar,” Maher Sheikh Hasan told a conference.

The dollar peg has provided stability in a period of regional instability to an aid-dependent economy hurt by a drop in capital inflows and remittances as Jordan is still struggling to recover from the global downturn of 2008-2009.

Jordan is expected to manage 2.8 percent growth this year, a slight pick-up from last year’s 2.5 percent and almost half the levels it attained during a boom period before the financial crisis.

“One thing one has to keep in mind in the Arab spring, we are facing a lot of nominal shocks where a fixed exchange regime plays a positive role in absorbing such shocks,” Sheikh Hasan added.

Sheikh Hasan also said last February’s rise in benchmark rates that went counter to a global rate trend was prompted by potential inflationary risks and to encourage savings in dinar-denominated assets at a time of regional political uncertainty.

“We recognized the level of concern … to maintain such attractiveness (of dinar-denominated assets), and to compensate investors for the relatively high risk premium it was appropriate to raise interest rates,” he added.

Bankers said the tightening of monetary policy had now the priority of encouraging dinar-denominated savings by widening the differential between the dinar and the dollar to over 3 percent to stem capital flight

Some bankers have said recent months have seen modest transfers to the dollar as a safe haven.

Sheikh Hasan said a freeze on gasoline prices had helped to keep inflation under control. So far this year it has averaged 3.6 percent, compared to 4.4 percent in the same period last year, the central bank official said. However, it is forecast to rise to almost 6 percent in 2012.

But inflation was expected to rise with plans to raise electricity prices and rationalize a costly subsidy system that has added to the kingdom’s fiscal pressures, Sheikh Hasan said.

Officials say reforming a universal system of fuel subsidies was crucial to reduce the budget deficit to around 5 percent of GDP this year from 6 percent in 2011. Economists say the deficit could reach as high as 8 percent without aid from Western donors and Saudi Arabia.

 

 

Oil market has extra supplies: Naimi

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Minister of Petroleum and Mineral Resources Ali Al-Naimi speaks during Singapore International Energy Week on Monday. (Reuters)

By REUTERS

Published: May 10, 2012 00:18 Updated: May 10, 2012 01:09

TOKYO: Petroleum and Mineral Resources Minister Ali Al-Naimi said oil markets would remain well supplied even after fresh international sanctions against Iran take effect, as global crude oversupply is already as much as 1.5 million barrels per day (bpd).

“There is a surplus oil in the market. There is surplus supply,” he told reporters in Tokyo after holding talks with Japanese officials about energy supplies.

US and European Union sanctions on Iran’s oil exports take effect in June and July.

When asked if he saw oil supplies tightening in coming months as global sanctions against Iran come into effect, Al-Naimi said: “Absolutely not.”

He said: “There is today about 1.3 to 1.5 million barrels per day (bpd) of extra supply over demand.”

The Organization of Petroleum Exporting Countries (OPEC) pumped about 1.3 million barrels per day above its output target in March, according to the group’s monthly report in April.

Saudi Arabia is pumping around 10 million barrels per day (bpd) and is storing 80 million barrels to meet any sudden disruption in supplies, Al-Naimi said on Tuesday.

Worries of a supply disruption from the Middle East due to escalating tensions between the West and Iran pushed benchmark Brent crude prices over $128 in March, a gain of over 20 percent from the start of the year.

Prices have since eased but have stayed well above $100, keeping global fuel costs high and threatening to derail the fragile global economic recovery.

The US, Britain and France have discussed a release from oil reserves to help prevent fuel prices choking economic growth in a US election year.

Al-Naimi said it was up to developed nations to decide whether to release oil from their strategic reserves.

“That’s their decision,” he said.

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Wars and Rumors of War

Iran reiterates concerns over U.S.-Afghan security pact

Tehran,  ANI

Tehran, May 8 (Xinhua-ANI): Iran’s Foreign Ministry spokesman Ramin Mehmanparast reiterated on Tuesday his country’s concerns over the security pact recently signed between the United States and Afghanistan.

The Islamic republic has informed the Afghani officials about its concerns over the agreement, said Mehmanparast in his weekly press briefing.

Peace, stability and security in Afghanistan is highly important for Iran, and Afghanistan’s security is intertwined with the security of the whole region and Iran. Any instability or insecurity can leave its impact on the Islamic republic, said the Iranian spokesman.

“We believe the presence of foreign forces, including the U.S. forces and its allies is the root cause of insecurity and instability in the regional countries and especially in Afghanistan,” said Mehmanparast.

He stressed that the regional countries can assist the establishment of security in Afghanistan.

On Sunday, Mehmanparast said that the unclear roles defined for U.S. forces and their military bases, in the strategic partnership agreement between the United States and Afghanistan, are major sources of concerns for Iran and other regional countries.

The pact cannot resolve Afghanistan’s security problems; instead, it will further destabilize the country and increase insecurity, Mehmanparast said.

Iran believes a complete withdrawal of foreign forces and closure of their military bases is the only way to solve Afghanistan’s problems and to bring peace and security to the country, he added.

Afghanistani President Hamid Karzai last Thursday assured the country’s neighbors that signing strategic partnership with the United States does not pose any threat to them. “There is no threat from Afghanistan soil to our neighbors,” Karzai told journalists at a press conference one day after inking the pact with his U.S. counterpart Barack Obama.

Obama paid a surprise visit to Kabul, the capital of Afghanistan, last Tuesday night. During his tour, Obama inked the strategic pact with Karzai and visited main U.S. military facilities in Bagram.

Karzai said that under the pact, the United States needs to support Afghanistan in all fields including economy and security.

According to Karzai, Afghanistan wants to further enhance relations with both Pakistan and Iran. He added that the U. S.-led coalition forces should pursue terrorists hiding in sanctuaries outside the Afghan borders, instead of fighting them in Afghan villages. (Xinhua-ANI)

Iran threat overblown? Israel split over possible attack

Published on May 9, 2012 by

Israel’s politicians have avoided the need for early elections, after the ruling coalition announced it’s struck a surprise deal with the opposition Kadima party. But the country’s military leadership still isn’t seeing eye to eye with lawmakers, accusing them of being hysterical over the perceived threat from Iran. RT’s Paula Slier looks at the growing rift.

 

 

Activities at Iran nuclear site raise concerns

By REUTERS

Published: May 9, 2012 22:37 Updated: May 9, 2012 22:37

VIENNA: A US security institute says commercial satellite imagery shows new activity at an Iranian military site which raises concern that the country may be “washing” a building the United Nations’ nuclear agency wants to inspect.

The United Nations’ International Atomic Energy Agency (IAEA) suspects nuclear weapons-related research may have taken place at the Parchin military complex southeast of Tehran.

Iran has dismissed the allegations but has yet to allow the agency to visit the facility, despite repeated requests.

IAEA chief Yukiya Amano said last week that the agency had recently noticed some “activities” there. He gave no details but Western diplomats suspect Iran may be cleaning the site before any inspection. Tehran denies this. The Institute for Science and International Security (ISIS), a Washington-based think-tank specializing on nuclear proliferation, said it had acquired commercial satellite imagery from April 9 which back up the IAEA’s concern.

“The new activity seen in the satellite image occurred outside a building suspected to contain an explosive chamber used to carry out nuclear weapons related experiments,” it said on its website in a May 8 report including the satellite image.

Iran’s mission to the IAEA was not immediately available for comment. It has previously dismissed allegations aired about Parchin as “childish” and “ridiculous.”

The images showed items lined up outside a building and what appeared to be a stream of water, ISIS said.

“The items visible outside the building could be associated with the removal of equipment from the building or with cleansing it,” it said. “The stream of water that appears to emanate from the building raises concerns that Iran may have been washing inside the building, or perhaps washing the items outside the building,” ISIS said.

Previous satellite images from recent months did not show any similar activity at the building, indicating it is not a regular occurrence, it added.

The IAEA has said that gaining access to Parchin is a priority when it holds a new round of talks with Iran in Vienna next week after two previous meetings in Tehran failed to make any notable progress.

Western powers suspect Iran is seeking to develop the capability to make nuclear bombs. Iran, one of the world’s largest oil producers, says its program is peaceful.

An IAEA report late last year revealed a trove of intelligence pointing to research activities in Iran of use in developing the means and technologies needed to assemble nuclear weapons, should it decide to do so.

One finding in the report was information that Iran had built a large containment chamber at Parchin in which to conduct high-explosives tests that the IAEA said are “strong indicators of possible weapon development.”

A senior US official said on Tuesday that Iran must cooperate with the IAEA’s investigation and provide access to relevant sites, personnel and documents.

“Iran continues to delay and obstruct that process,” Thomas Countryman, assistant secretary for international security and nonproliferation, told a meeting in Vienna.

 

 

Libya asks ICC to quash Qaddafi’s son case

By AGENCIES

Published: May 2, 2012 01:04 Updated: May 3, 2012 15:30

THE HAGUE/TRIPOLI: Libya fired the latest salvo in a legal battle over the trial of Muammar Qaddafi’s son, officially asking world war crimes court judges to quash a surrender request and throw out the case.

“The Libyan government requests the Chamber to declare the case inadmissible and quash the surrender request,” Libya’s lawyers said in a document, filed before the International Criminal Court.

Tripoli and the ICC have been at loggerheads since Seif Al-Islam’s capture in November last year over where he should be tried, with Libya arguing it could put him in the dock before a local court.

But the ICC had issued an arrest warrant in late June last year against Seif and ex-Libyan security boss Abdullah Al-Senussi and it wants to see them tried in The Hague. A third warrant for the late Libyan strongman was nullified after Qaddafi was killed by rebel forces in October 2011.The new Libyan government said earlier it would file official papers by April 30 before the ICC to spell out reasons why Seif should be tried at home.

“Denying the Libyan state and its people the opportunity to carry out national proceedings, in accordance… with the Libyan law, would likely mean no state emerging from conflict could ever benefit from the complementary principle,” Libya’s lawyers said in the document.

Libya is referring to the ICC’s jurisdiction that is complementary to that of national courts, enabling it to act only when member states were unwilling or unable to do so.

Tripoli’s stance also got support Monday from the Arab League which said in a statement in Cairo: “The Libyan government has repeatedly assured that all conditions … would be met to organize a fair and impartial trial on its territory.”

Separately, Nuri Abbar, head of the Libyan electoral committee, told AFP

that it has opened voter and candidate registration centers, in another step towards its goal of holding elections for a constituent assembly in June. “Registration for voters and candidates opened today.”

The vote will mark the first nationwide poll after decades of dictatorship under Qaddafi, who was toppled and killed in an uprising last year.

Abbar said there are 1,350 voter registration centers across Libya, including 220 in the capital Tripoli. Another 13 centers are tasked with registering candidates. Libya, with a population of 6 million, has 3.4 million eligible voters, he said.

The ruling National Transitional Council, which took power last August, has pledged to hold elections for a constituent assembly in June.

The 200-member assembly is to appoint a panel of experts to draft a constitution which will then be put to a referendum.

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Articles of Interest

IAEA Inspector Dies in Iran

TEHRAN, Iran— A United Nations nuclear inspector from South Korea was killed Tuesday and a colleague was injured in a car crash near a reactor site in central Iran, news reports said. There were no immediate indications of foul play. But the crash is likely to undergo intense scrutiny. The official Islamic Republic News Agency said the International Atomic Energy Agency inspector died when the car overturned around a heavy-water reactor being built in Khondab, about 150 miles southwest of Tehran. Iran says the reactor, part of the Arak complex, will be used to produce isotopes for peaceful medical and industrial uses. But the U.S. and others fear that spent fuel from the reactors could be reprocessed into plutonium for a warhead. Iran denies it seeks nuclear weapons. IRNA identified the fatally injured inspector as Seo Ok-Seok. Another news agency, ISNA, said an inspector from Slovakia was injured in the crash and taken to a hospital. The Vienna-based IAEA had no immediate comment on the reports. The incident comes ahead of a new round of technical discussions between Tehran and the IAEA to be held in Vienna beginning Sunday. Higher-level negotiations also are planned later this month in Baghdad between envoys from Iran and six world powers including the U.S. Inspectors from the U.N nuclear watchdog regularly visit Iran’s nuclear facilities, which include a Russian-built energy reactor and uranium-enrichment laboratories. The stops often receive far less attention than the high-level IAEA teams sent to Iran to discuss access to other sites, such as the Parchin military base near Tehran, where the U.N. suspects nuclear-related work has taken place. Iran says Parchin is a conventional military base.

Now A Witness To Breitbart’s Death Disappears

A private investigator has been unable to find the only eyewitness to the sudden death of media innovator and conservative activist Andrew Breitbart.

The apparent disappearance of Christopher Lasseter, who says he saw Breitbart drop to the sidewalk in front of a restaurant, adds to the mystery surrounding Breitbart’s March 1 death.

On the day the Los Angeles County coroner released Breitbart’s autopsy report, a photographic technician at the corner’s office died suddenly of suspicious causes.

In addition, at the Conservative Political Action Conference in Washington, D.C., just three weeks before Breitbart’s death – where he promised to unveil “damning” new video evidence of Barack Obama’s radical past that would change the election – Breitbart gave WND details of his upcoming revelations.

He claimed to WND that he had a video showing radical Weather Underground terrorist Bill Ayers and Barack Obama at Harvard planning revolution in the United States. But the video, aired just after he died, was of Obama introducing a radical Harvard professor, and the general response was flat.

Filmmaker Steve Bannon, appointed executive chairman of the Breitbart News Network after Breitbart’s death, has insisted to WND that the media mogul died of natural causes and to suggest anything else is irresponsible.

“Breitbart had an enlarged heart,” Bannon told WND. “He had been hospitalized for the problem last year and told to lose weight that he did not lose.”

Bannon, formerly a Breitbart News Network board member, told WND that for months prior to his death, Breitbart had been working overtime to finalize a refinancing of his news agency.

“He died of natural causes,” Bannon said. “The family wants the matter put to rest, and WND is beginning to irritate me suspecting foul play.”

In addition to Bannon, Laurence Solov, formerly president and chief operating officer, was elevated after Breitbart’s death. Solov took Breitbart’s place as CEO.

Read Full Article Here

Banking giant HSBC ‘a criminal enterprise’

Whistleblower makes damning case in video interview

The global banking giant HSBC is a “criminal” operation, charges a former officer for the company’s southern New York region in a video interview with WND.

John Cruz, a former vice president and relationship manager, has turned over to WND more than 1,000 pages of documents, including customer account ledgers for dozens of companies through which, he charges, the financial institution was laundering money each month.

 Cruz told WND that as a relationship manager, it was his responsibility to look up various accounts in the HSBC computer system and visit the account holders in person to offer additional banking products and services.

“I pulled these documents because I thought they were evidence of suspicious activity taking place,” Cruz affirmed when presented by WND with various HSBC computer ledgers of customer accounts. “These same documents I brought to bank security and my managers in the bank.”

To his surprise, HSBC management and security did not welcome his reports of suspicious activity.

“My managers told me I was crazy and I didn’t know what I was talking about,” he said. “They told me it was none of my business what goes on in transactions. But that’s my job.”

WND showed Cruz the HSBC account ledger for a business named United Express, as seen redacted in Exhibit 1 below:

Read Full Article Here

SEC charges ex-Detroit mayor Kwame Kilpatrick in investment scheme

By Ron Recinto | The Lookout

The Security and Exchange Commission today charged the former mayor of Detroit Kwame Kilpatrick with secretly exchanging lavish gifts to peddle his influence over the investment process of the city’s pension funds.

The SEC also charged Jeffrey W. Beasley, the former city treasurer and investment adviser to the pension funds along with Kilpatrick.

The complaint alleges Kilpatrick and Beasley, who were trustees of the pension funds, solicited and received $125,000 worth of private jet travel and other perks paid for by MayfieldGentry Realty Advisors LLC, an investment adviser whose CEO, Chauncey Mayfield, was recommending to the trustees that the pension funds invest approximately $117 million in a real estate investment trust controlled by the firm.

Read Full Article Here

Obama’s Second Term Transformation Plans

By Steve McCann

The 2012 election has often been described as the most pivotal since 1860.  This statement is not hyperbole.  If Barack Obama is re-elected the United States will never be the same, nor will it be able to re-capture its once lofty status as the most dominant nation in the history of mankind.

The overwhelming majority of Americans do not understand that Obama’s first term was dedicated to putting in place executive power to enable him and the administration to fulfill the campaign promise of “transforming America” in his second term regardless of which political party controls Congress.   That is why his re-election team is virtually ignoring the plight of incumbent or prospective Democratic Party office holders.

The most significant accomplishment of Obama’s first term is to make Congress irrelevant.  Under the myopic and blindly loyal leadership of Harry Reid and Nancy Pelosi, the Democrats have succeeded in creating an imperial and, in a second term, a potential dictatorial presidency.

During the first two years of the Obama administration when the Democrats overwhelming controlled both Houses of Congress and the media was in an Obama worshipping stupor, a myriad of laws were passed and actions taken which transferred virtually unlimited power to the executive branch.

The birth of multi-thousand page laws was not an aberration.  This tactic was adopted so the bureaucracy controlled by Obama appointees would have sole discretion in interpreting vaguely written laws and enforcing thousands of pages of regulations they and not Congress would subsequently write.

For example, in the 2,700 pages of ObamaCare there are more than 2,500 references to the Secretary of Health and Human Services.  There are more than 700 instances when he or she is instructed that they “shall” do something and more than 200 times when they “may” take at their sole discretion some form of regulatory action.  On 139 occasions, the law mentions that the “Secretary determines.”  In essence one person, appointed by and reporting to the president, will be in charge of the health care of 310 million Americans once ObamaCare is fully operational in 2014.

The same is true in the 2,319 pages of the Dodd-Frank Financial Reform Act which confers nearly unlimited power on various agencies to control by fiat the nation’s financial, banking and investment sectors.  The bill also creates new agencies, such as the Consumer Financial Protection Bureau, not subject to any oversight by Congress.   This overall process was repeated numerous times with other legislation all with the intent of granting unfettered power to the executive branch controlled Barack Obama and his radical associates.

Read Full Article Here

Russian Sukhoi SuperJet-100 missing on test flight in Indonesia

Published on May 9, 2012 by

UPDATES ON http://on.rt.com/7bm552

A Russian jet with 50 people on board has disappeared from the radars during a demonstration flight for potential buyers in the Indonesian capital. Hijacking and a high-altitude crash into a mountain have not been ruled out. Due to low visibility and fog the helicopters had to stop the search and return to base. The rescue operation is now restricted to a ground search. The search will continue throughout the night.

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[In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit, for research and/or educational purposes. This constitutes 'FAIR USE' of any such copyrighted material.]

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