Friday, June 14, 2013

Leaked: NSA's Talking Points Defending NSA Surveillance

from the you-have-to-be-kidding-me dept      http://www.techdirt.com/articles/20130613/17490723465/leaked-nsas-talking-points-defending-nsa-surveillance.shtml

The government has been passing around some "talking points" to politicians and the press trying to spin the NSA surveillance story. We've got the talking points about scooping up business records (i.e., all data on all phone calls) and on the internet program known as PRISM. Both are embedded below. Let's dig in on a few of the points, starting with the business records/FISA issue:
The news articles have been discussing what purports to be a classified, lawfully-authorized order that the Foreign Intelligence Surveillance Court (FISA Court) issued under an Act of Congress – the Foreign Intelligence Surveillance Act (FISA). Under this Act, the FISA Court authorized a collection of business records. There is no secret program involved here – it is strictly authorized by a U.S. statute.
"There is no secret program here"? Bullshit. Why, then, have so many people, both in the Congress and the public been shocked at the extent to which the NSA is snarfing up data? This is a secret program, enabled by a secret interpretation of the FISA Amendments Act, by the FISA Court, which the DOJ and the NSA insist the public is not allowed to know. Yes, it's a secret program. Saying otherwise is simply lying.
It authorizes only metadata collection, which includes barebones records – such as a telephone number or the length of a call.
"Barebones records" and "metadata" are terms being used to play down the extent of the collection of info, but it ignores multiple reports that note the amount of data actually collected -- including phone numbers, call times, call location, among other things -- is more than enough to identify who someone is and a variety of important characteristics about that person.
This legal tool, as enacted by Congress, has been critical in protecting America. It has been essential in thwarting at least one major terrorist attack to our country in the past few years.
"At least one" is a lot less than the "dozens" NSA boss Keith Alexander recently stated. But, so far the only "one" identified, involving an attempted NYC Subway bombing was shown not to have needed this data collection program to uncover and stop. So, nope.
Despite what appears to be a broad scope in the FISA Court’s order, the Intelligence Community uses only a small fraction of a percent of the business records collected to pursue terrorism subjects.
This is meaningless. That's like saying, even though we search everyone's house illegally, we only actually arrest a small number of people. No one would allow such house searches under the 4th Amendment, so why is it okay with phone records?
All three branches – Congress, the Courts, and the Executive Branch – review and sign off on FISA collection authorities. Congress passed FISA, and the Intelligence Committees are regularly and fully briefed on how it is used.
Except many in Congress have made it clear they did not review this kind of program, or were led to believe that the NSA did not collect this kind of information. And those who are being briefed now say the program goes way beyond what they were told. And, those who did know about it beforehand, tried to dig deeper into the program, but were blocked. As for "the Courts" reviewing it, we're talking about the FISA Court which is a rubberstamp in black robes, having approved every single request of it for the past three years. It last rejected a request back in 2009, and that was only one out of 1320. In its entire history, since 1979, the court has rejected a grand total of 11 applications. 11. Out of 33,939 applications. That's 0.03%. Not 3%. 0.03% with not a single rejection in over three years. That's not careful review. That's a rubber stamp. As for the executive branch signing off on it, what do you expect? They're going to hold back their own ability to spy on people?
The FISA Court authorizes intelligence collection only after the Intelligence Community has proven its case, based on underlying facts and investigations.
Well, we already covered the rubber stamp issue above, but Section 215 of the Patriot Act requires that the government present a case that the data it is seeking "must be relevant to an authorized preliminary or full investigation to obtain foreign intelligence information not concerning a U.S. person or to protect against international terrorism or clandestine intelligence activities." I'd love to see the argument that all data is somehow relevant to the investigation. Of course, I can't see it, because it's secret.
This legal tool has been reauthorized only after ongoing 90-day renewal periods. That means that every 90 days, the Department of Justice and the FBI must prove to the Foreign Intelligence Surveillance Court that they have the facts and legal basis to renew this legal authority. It is not a rubber stamp.
Ha ha ha. So, we violate your privacy without any opposing view -- but we do it every 90 days for seven straight years.
FISA-authorized collections are subject to strict controls and procedures under oversight of the Department of Justice, the Office of the Director of National Intelligence and the FISA Court, to ensure that they comply with the Constitution and laws of the United States and appropriately protect privacy and civil liberties.
What kind of "strict controls and procedures" allow for the collection of every single record of every single phone call, and then also make it accessible to the 29-year-old IT guy in Hawaii? Just wondering...

Moving on to the "NSA internet talking points."
Section 702 is a vital legal tool that Congress reauthorized in December 2012, as part of the FISA Amendments Act Reauthorization Act, after extensive hearings and debate. Under Section 702, the Foreign Intelligence Surveillance Court (FISA Court) certifies foreign intelligence collection. There is no secret program involved – it is strictly authorized by a U.S. statute.
Again, "no secret program," merely a secret interpretation of the law, in a secret ruling by a secret court. What's everyone complaining about?
Section 702 cannot be used to target any U.S. person. Section 702 also cannot be used to target any person located in the United States, whether that person is an American or a foreigner.
Note the careful choice of words: it cannot be used to target a person in the US. It can, however, be used to collect info on a person in the US if they're not "the target" of the investigation. Fun with words!
The unauthorized disclosure of information about this critical legal tool puts our national security in grave danger, puts Americans at risk of terrorist and cyber attacks, and puts our military intelligence resources in danger of being revealed to our adversaries.
Right. So this is not a new program, it's no surprise, people shouldn't be concerned... and now that you know about it we're all going to die!

How does anyone take these jokers seriously?

Jeff Duncan questions IRS gun usage

Jeff Duncan is pictured here. | AP Photo
Duncan questioned whether the level of firepower was appropriate for IRS agents. | AP Photo
Rep. Jeff Duncan wants to know why IRS law enforcement agents are training with AR-15 rifles.
As chairman of the House Homeland Security oversight subcommittee, Duncan (R-S.C.) toured a federal law enforcement facility in late May and noticed agents training with the semi-automatic weapons at a firing range. They identified themselves as IRS, he said.


“When I left there, it’s been bugging me for weeks now, why IRS agents are training with a semi-automatic rifle AR-15, which has stand-off capability,” Duncan told POLITICO. “Are Americans that much of a target that you need that kind of capability?”
(PHOTOS: 10 slams on the IRS)
While Duncan acknowledges that the IRS has an enforcement division, he questions if that level of firepower is appropriate when they could coordinate operations with other agencies, like the FBI, especially in a time of austerity.
“I think Americans raise eyebrows when you tell them that IRS agents are training with a type of weapon that has stand-off capability. It’s not like they’re carrying a sidearm and they knock on someone’s door and say, ‘You’re evading your taxes,’” Duncan said.
Given the increased scrutiny amid the agency’s targeting of political groups and excessive spending, Duncan said, he intends to seek answers from the IRS.
“We’ll ask the questions and hopefully they can justify it. And if not, we’ll bring them in front of the committee for a hearing and ask the questions on the record,” he said.
In a statement, the IRS defended the training.
“As law enforcement officials, IRS Criminal Investigation Special Agents are equipped similarly to other federal, state and local law enforcement organizations. Special Agents receive training on the appropriate and safe use of assigned weapons. IRS Criminal Investigation has internal controls and oversight in place to ensure all law enforcement tools, including weapons are used appropriately,” the IRS said.
(PHOTOS: 8 key players in IRS scandal story)
The agency included a link to its enforcement website, where annual reports show IRS investigations and convictions of crimes ranging from offshore bank accounts, to Medicare fraud, to money laundering and drug trafficking operations.

Read more: http://www.politico.com/story/2013/06/jeff-duncan-irs-rifle-training-92662.html#ixzz2WClIbQxE

Special Report: A little house of secrets on the Great Plains


U.S. house on the prairie where corporate secrecy thrives (05:47)

Tue Jun 28, 2011 11:31am EDT
SHELL GAMES: A Reuters Investigation
Articles in this series are exploring the extent and impact of corporate secrecy in the United States.
By Kelly Carr and Brian Grow
CHEYENNE/ATLANTA (Reuters) - The secretive business havens of Cyprus and the Cayman Islands face a potent rival: Cheyenne, Wyoming.
At a single address in this sleepy city of 60,000 people, more than 2,000 companies are registered. The building, 2710 Thomes Avenue, isn't a shimmering skyscraper filled with A-list corporations. It's a 1,700-square-foot brick house with a manicured lawn, a few blocks from the State Capitol.
Neighbors say they see little activity there besides regular mail deliveries and a woman who steps outside for smoke breaks. Inside, however, the walls of the main room are covered floor to ceiling with numbered mailboxes labeled as corporate "suites." A bulky copy machine sits in the kitchen. In the living room, a woman in a headset answers calls and sorts bushels of mail.
A Reuters investigation has found the house at 2710 Thomes Avenue serves as a little Cayman Island on the Great Plains. It is the headquarters for Wyoming Corporate Services, a business-incorporation specialist that establishes firms which can be used as "shell" companies, paper entities able to hide assets.
Wyoming Corporate Services will help clients create a company, and more: set up a bank account for it; add a lawyer as a corporate director to invoke attorney-client privilege; even appoint stand-in directors and officers as high as CEO. Among its offerings is a variety of shell known as a "shelf" company, which comes with years of regulatory filings behind it, lending a greater feeling of solidity.
"A corporation is a legal person created by state statute that can be used as a fall guy, a servant, a good friend or a decoy," the company's website boasts. "A person you control... yet cannot be held accountable for its actions. Imagine the possibilities!"
Among the entities registered at 2710 Thomes, Reuters found, is a shelf company sheltering real-estate assets controlled by a jailed former prime minister of Ukraine, according to allegations made by a political rival in a federal court in California.
The owner of another shelf company at the address was indicted in April for allegedly helping online-poker operators evade a U.S. ban on Internet gambling. The owner of two other firms there was banned from government contracting in January for selling counterfeit truck parts to the Pentagon.
CASTING THE FIRST STONE
All the activity at 2710 Thomes is part of a little-noticed industry in the U.S.: the mass production of paper businesses. Scores of mass incorporators like Wyoming Corporate Services have set up shop. The hotbeds of the industry are three states with a light regulatory touch-Delaware, Wyoming and Nevada.
The pervasiveness of corporate secrecy on America's shores stands in stark contrast to Washington's message to the rest of the world. Since the September 11 attacks in 2001, the U.S. has been calling forcefully for greater transparency in global transactions, to lift the veil on shadowy money flows. During a debate in 2008, presidential candidate Barack Obama singled out Ugland House in the Cayman Islands, reportedly home to some 12,000 offshore corporations, as "either the biggest building or the biggest tax scam on record."
Yet on U.S. soil, similar activity is perfectly legal. The incorporation industry, overseen by officials in the 50 states, has few rules. Convicted felons can operate firms which create companies, and buy them with no background checks.
No states license mass incorporators, and only a few require them to formally register with state authorities. None collect the names and addresses of "beneficial owners," the individuals with a controlling interest in corporations, according to a 2009 report by the National Association of Secretaries of State, a group for state officials overseeing incorporation. Wyoming and Nevada allow the real owners of corporations to hide behind "nominee" officers and directors with no direct role in the business, often executives of the mass incorporator.
"In the U.S., (business incorporation) is completely unregulated," says Jason Sharman, a professor at Griffith University in Nathan, Australia, who is preparing a study for the World Bank on corporate formation worldwide. "Somalia has slightly higher standards than Wyoming and Nevada."
An estimated 2 million corporations and limited liability companies are created each year in the U.S., according to Senate investigators. The Treasury Department has singled out LLCs as particularly vulnerable to being used as shell companies, as they can be owned by anyone and managed anonymously. Delaware, Nevada and Wyoming had 688,000 LLCs on file in 2009, up from 624,000 in 2007.
Treasury and state banking regulators say banks have flagged billions of dollars in suspicious transactions involving U.S. shell companies in recent years. On June 10, a federal judge in Oregon ordered a company registered there to pay $60 million for defrauding a Ukrainian government agency through sham transactions involving shell companies. The civil lawsuit described a network of U.S.-registered shells connected to fraud in Eastern Europe and Afghanistan.
A growing niche in the shell business is shelf corporations. Like paper-only shells, which enable the secrecy-minded to hide real ownership of assets, shelf companies are set up by firms like Wyoming Corporate Services, then left "on the shelf" to season for years. They're then sold later to owners looking for a quick way to secure bank loans, bid on contracts, and project financial stability. To speed up business activity, shelf corporations can often be purchased with established bank accounts, credit histories and tax returns filed with the Internal Revenue Service.
"They just slot in your names, and you walk away with the company. Presto!" says Daniel E. Karson, executive managing director at investigative firm Kroll Inc. "The purpose is to conceal ownership."
On its website, Wyoming Corporate Services currently lists more than 700 shelf companies for sale in 37 states. The older they are, the more expensive, like Scotch whisky. Brookside Management Inc., formed in December 2004, sells for $5,995, while Knotty Management LLC, formed in May, costs just $645. In Delaware, incorporator Harvard Business Services markets First Family LLC, created in May 1997, for $10,000.
"If they're signing a large contract, they may not want it to look like they've just formed a company," said Brett Melson, director of U.S. sales at Harvard Business Services. But he added: "Unsavory characters can do a lot of bad things with the companies."
Shell and shelf companies do serve legitimate purposes. They provide a quick and cheap way for entrepreneurs to jump into business and create jobs. Businesses can use them to protect trade secrets. Politicians or other public figures may use a shell company to hold their home so that people with ill intent have a harder time locating them.
The state of Wyoming says it cracked down on incorporation services in 2009 after discovering that nearly 5,700 companies were registered to post-office boxes. New laws require companies to have a physical presence in the state through an owner or a registered agent, and make it a felony to submit false filings.
"What we want to have is good, quality legitimate businesses," said Patricia O'Brien, Wyoming's Deputy Secretary of State. "We don't regulate what the business itself does, but we are not recruiting businesses here that are questionable or illegal."
Wyoming Corporate Services is run by Gerald Pitts, its 54-year-old founder and president. On paper, he is a prolific businessman. Incorporation data provided by Westlaw, a unit of Thomson Reuters, show that Pitts is listed as a director, president or principal for at least 41 companies registered at 2710 Thomes Avenue.
Another 248 firms name Edge Financial Inc., another incorporation service, as their "manager." Gerald Pitts is the president of Edge Financial, according to records on file with the Wyoming secretary of state's office.
Companies registered at 2710 Thomes Avenue have been named in a dozen civil lawsuits alleging unpaid taxes, securities fraud and trademark infringement since 2007, a review of Westlaw data shows. State and federal tax authorities have filed liens against companies registered at the address seeking to collect more than $300,000 in unpaid taxes, according to Westlaw.
Pitts says Wyoming Corporate Services fully complies with the law and doesn't have any knowledge of how clients use the companies he registers. "However, we recognize that business entities (whether aged, shell or traditional) may be used for both good and ill," Pitts wrote in an email to Reuters. "WCS will always cooperate with law enforcement agencies who request information or assistance. WCS does not provide any product or service with the intent that it be used to violate the law."
THE UKRAINE CONNECTION
Gerald Pitts and his own incorporation firms have never been sued or sanctioned, according to federal and state court records. Wyoming officials said Wyoming Corporate Services operates legally. "If they do it by cubby holes and they are really representing each person, they meet the law," said O'Brien, the deputy secretary of state.
But clients of his have run into trouble.
Among those registered at the little house in Cheyenne are two small companies formed through Wyoming Corporate Services that sold knock-off truck parts to the U.S. Department of Defense, according to a Reuters review of two federal contracting databases and findings from an investigation by the Pentagon's Defense Logistics Agency. The owner of those firms, Atilla Kan, awaits sentencing on a 2007 conviction for wire fraud in a related matter.
Also linked to 2710 Thomes is former Ukrainian Prime Minister Pavlo Lazarenko, who was once ranked the eighth-most corrupt official in the world by watchdog group Transparency International. He is now serving an eight-year jail term in California for a 2004 conviction on money-laundering and extortion charges. According to court records, that scheme used shell companies and offshore bank accounts to hide stolen Ukrainian government funds.
Court records submitted in Lazarenko's criminal case and documents from a separate civil lawsuit, as well as interviews with lawyers familiar with the matter, indicate Lazarenko controls a shelf company incorporated in Cheyenne that owns an estimated $72 million in real estate in Ukraine through other companies.
The U.S. government continues to seek more than $250 million from bank accounts in Antigua, Barbuda, Guernsey and other countries that it says were controlled by Lazarenko and his associates, according to a forfeiture action filed by the Department of Justice.
The paper trail linking Lazarenko to the real estate in Ukraine is labyrinthine. At the heart of it is a shelf company called Capital Investments Group, registered at 2710 Thomes Avenue.
U.S. lawyers for a Ukrainian businessman named Gennady Korban submitted documents claiming that Lazarenko is the true owner of Capital Investments Group and other U.S. companies.
Lazarenko and Korban are rivals in Ukraine, and for years have traded allegations of corruption and assassination. An organization chart accompanying Korban's submission alleges Capital Investments Group owns 99.99 percent of a Ukrainian firm called OOO Capital Investments Group. That company, the chart claims, is the owner of another company, OOO Ukrainsky Tyutyun, where Pavlo Lazarenko is a director. Each of the firms and several others are used as corporate fronts to control properties in Dnepropetrovsk, Ukraine, the filing alleges.
Seven properties are named in the 2009 filing by Korban, including 55 Pushkin Street and 58 Komsomolskaya Street. The dossier on Capital Investments Group claims that other directors of the alleged front companies include Lazarenko's wife, son and mother-in-law.
Federal prosecutors successfully urged the court in late 2009 to disregard Korban's submissions, arguing that it would take too much time to vet his account and thus delay his resentencing after a lengthy appeal.
A few months later, in February 2010, Capital Investments Group sued Korban and others in federal court in Delaware. That lawsuit claims two properties in the Ukraine controlled by Capital Investments Group - 55 Pushkin Street and 58 Komsomolskaya Street - were stolen from it using forged documents.
The lawsuit says Capital Investments was formed in September 2005. It is registered at 2710 Thomes Avenue, and Gerald Pitts, the court documents say, is "President, Secretary, Chairman and director."
But Capital Investments Group doesn't disclose the name of its owners. Daniel Horowitz and Martin Garbus, attorneys for the company, have represented Pavlo Lazarenko in other U.S. and Ukrainian litigation. They declined to provide the owners' names, citing client confidentiality, and wouldn't comment on Lazarenko's links to CIG.
The U.S. Attorney's office in San Francisco declined to comment. Asked about his association with Lazarenko and Capital Investments Group, Gerald Pitts declined to provide information on specific clients. Pitts said he is aware of the Delaware lawsuit and "is cooperating fully with authorities in the matter."
POKER EMPIRE
Another man linked to 2710 Thomes is Ira N. Rubin. Prosecutors allege he created a Rube Goldberg-style network of shell and shelf corporations to further his scams.
In December 2006, the Federal Trade Commission sued Rubin for fraud in federal court in Tampa. Documents in the civil lawsuit allege Rubin used at least 18 different front companies to obscure his role as a credit-card processor for telemarketing scams.
These operations, the FTC alleged, offered subprime credit cards that charged an upfront fee debited from customers' bank accounts, but the cards were never delivered. The complaint also alleged Rubin processed payments for online gambling rings and pharmacy websites selling controlled substances.
One company in that network was Elite Funding Group Inc. It was registered at 2710 Thomes Avenue in August 2004 and offered for sale by Wyoming Corporate Services for $1,095. Gerald Pitts was listed in public documents as the original director, wrote an investigator hired by the FTC in a January 2007 report filed in federal court in Tampa. Pitts had resigned six months earlier as director and was replaced by Rubin, according to court records.
Rubin's maze-like network served as the back office for alleged consumer scams operating from Canada, the Philippines, Cyprus and the U.S., with names like Freedom Pharmacy and Fun Time Bingo. His companies took consumer bank account information obtained by the clients, charged the accounts via an electronic transactions network that enables direct debits, kept a portion of the proceeds, and forwarded the rest to the alleged fraudsters, according to documents in the FTC's civil lawsuit.
To minimize scrutiny, Rubin used at least 18 different firms to handle his operations. A firm called Global Marketing Group processed payments for telemarketers offering bogus credit cards, the FTC alleged. Elite Funding, the Wyoming shelf corporation, was a subsidiary of Global Marketing. Rubin used Elite to open bank accounts with Wells Fargo Bank which held more than $300,000 in proceeds from the payment processing, according to court records.
Just hours after Rubin was visited by a court-appointed receiver in the case in December 2006, $249,000 vanished from the Wells Fargo account. Rubin refused to say if he transferred the money, citing his 5th Amendment right against self-incrimination. At least $125,000 then made its way to a bank account in Chennai, India, and has never been recovered, according to documents in the civil lawsuit.
Why use a shelf company? "To hide who they are and what they are doing. In the case of Ira Rubin, he had a payment processing empire that worked on behalf of many different industries, all of which were engaged in illegal conduct," said James Davis, an attorney with the Federal Trade Commission. "It was to his benefit to make it as difficult as possible for law enforcement to connect these companies back to him."
In 2008, Rubin fled to Costa Rica to avoid arrest for contempt in the civil case. Authorities allege he went on to run another payment-processing operation from abroad: This March 10, he and 10 others were indicted in New York for allegedly running a massive scheme to hide payments made by U.S. customers to the three largest online-poker websites, in violation of a ban passed by Congress in 2006. He was extradited from Guatemala the same month. On June 8, a New York judge denied bail for Rubin. (link.reuters.com/jud42s)
Stuart Meissner, an attorney for Rubin, said his client was not available for comment. Pitts declined to comment.
AMERICAN LOOPHOLES
The loopholes in U.S. disclosure of bank-account and shell-company ownership have drawn fire.
The U.S. was declared "non-compliant" in four out of 40 categories monitored by the Financial Action Task Force, an international group fighting money laundering and terrorism finance, in a 2006 evaluation report, its most recent. Two of those ratings relate to scant information collected on the owners of corporations. The task force named Wyoming, Nevada and Delaware as secrecy havens. Only three states - Alaska, Arizona and Montana - require regular disclosure of corporate shareholders in some form, according to the 2009 report by the National Association of Secretaries of State.
Some lawmakers want tighter rules. Senator Carl Levin (D-Mich.), chairman of the Senate Homeland Security Committee's Permanent Subcommittee for Investigations, has introduced the Incorporation Transparency and Law Enforcement Assistance Act each year since 2008. The bill would require states to obtain and update information about the real owners of companies, and impose civil and criminal sanctions for filing false information.
"Criminals use U.S. shell companies to commit financial fraud, drug trafficking, even terrorist financing, in part because our states don't require anyone to name the owners of the companies they form," Levin said in an email to Reuters.
The bill has been beaten back by a coalition of state officials and business groups, citing concerns about the cost of implementing the new law and federal government infringement on state incorporation rights.
A leading opponent is the National Association of Secretaries of State. Kay Stimson, a spokeswoman, said in an email that the Levin bill "would have placed new burdens upon states and legitimate, law-abiding businesses-many of which are struggling to stay afloat during these difficult financial times-while continuing to provide lawbreakers with the means to evade the law."
An aide for Levin said the bill is expected to be re-introduced soon. The new bill will add provisions requiring incorporation agents who sell shelf companies to provide beneficial owner data, said a Senate aide familiar with it.
CAT AND MOUSE
Shell companies remain a headache for law-enforcement authorities. Officials say court-ordered subpoenas served on incorporators of shell and shelf corporations generally do deliver the names of the real owners hiding behind nominees. But if the owners are not U.S. citizens or companies, the investigation often hits a dead-end, they say.
There are additional hurdles. Wyoming Corporate Services charges $2,500 per year to supply an attorney who can provide an extra shield. Cheyenne attorney Graham Norris Jr. tells prospective clients sent to him by WCS that he will create a company on their behalf. That way, he says, he can invoke attorney-client privilege-adding a layer of privacy anytime there is an inquiry about their identities.
"When you do need to contact Wyoming Corporate Services, you may do so through me," advises a June 13 "Dear Client" letter supplied by Norris to Reuters. "If you contact them directly, there is a greater risk they may disclose that information in response to a subpoena; remember there is no privilege with Wyoming Corporate Services, only with your attorney."
For a fee, clients can request that Norris file a motion to quash any subpoena, the letter says. It warns that in cases where fraud or criminal conduct is alleged, a court might order Norris to name the owners. Still, after any inquiry about identity, the letter says, Norris must inform the client-and "I must also decline to answer the inquiry."
Investigators say they are sometimes loath to use subpoenas for the very reason highlighted in Norris' letter-fear of tipping off targets. "In the initial stages of investigation, when we encounter a domestic shell corporation, we know we can't subpoena the company that sold the corporation to the end users, because we don't want the target to find out they are being investigated," says FTC attorney James Davis.
Other U.S. agencies raise similar complaints about shells. The 2006 U.S. Money Laundering Threat Assessment, prepared by 16 federal agencies, devotes a chapter to the ways U.S. shell companies can be attractive vehicles to hide ill-gotten funds. It includes a chart to show why money launderers might like to create shells in Wyoming, Nevada or Delaware, which offer the highest levels of corporate anonymity.
The information in the chart is credited to the Web site of a firm called Corporations Today-an incorporation service run by Gerald Pitts in Cheyenne, Wyoming.
(Reporting by Kelly Carr in Cheyenne and Brian Grow in Atlanta; additional reporting by Dan Levine in San Francisco, Jen Rogers and Jaime Hellman in Cheyenne; research by Mary Kivimaki of Westlaw; editing by Claudia Parsons and Michael Williams)

Mainstream media losing all credibility as it fails to break any news on exploding government scandals


naturalnews.com

Originally published June 14 2013

media

Mainstream media losing all credibility as it fails to break any news on exploding government scandals

by J. D. Heyes

(NaturalNews) In another sign of the weakening "influence" of the mainstream media, not one of the major scandals currently swirling around the Obama Administration were broken by what you could fairly call the establishment press.

Fact: Over the past few weeks, three major scandals have broken over the Obama Administration, and it is a very sad (and frightening) truth that our pathetic, American, lapdog mainstream media are not responsible for breaking even a single one," writes John Nolte in Breitbart News' Big Journalism section.

He goes onto note that the three scandals - involving the IRS; NSA/Verizon phone records; the Justice Department's improper seizure of Associated Press phone records; and Benghazi - were either broken by foreign media or the so-called U.S. alternative media (of which NaturalNews is a proud member).

Thank goodness for the alternative press

The Verizon story was broken by The Guardian, a British newspaper (the whistleblower in this case, 29-year-old Edward Snowden, an NSA analyst, probably didn't trust anyone in the U.S. with this story).

How about the IRS' improper targeting of conservative political action groups? Again, that story was broken "with a planted question," Nolte points out.

In the case of the Justice Department's targeting of AP reporters and editors, even The Associated Press failed to break that story; it only emerged after the Justice Department notified the AP what had occurred, so essentially, the department tattled on itself.

And Benghazi? Again, nope. Even though there was plenty of smoke there, the mainstream media - which has been in bed with Obama since day one of his initial campaign - took a pass en mass. There were a few exceptions, most notably Jake Tapper and Sharyl Attkission, but other than that, only Republican members of Congress and Fox News have been aggressively seeking the truth about what actually took place there when our ambassador, Christopher Stevens, was killed and brutalized.

"Left up to the media, we wouldn't know anything about Libya. All of the media's energy was collectively poured into ensuring the truth was never discovered," Nolte wrote. "And do you want to know what makes this realization especially pathetic? In three of the four scandals (the AP being the exception), had our media been less interested in protecting Power and more interested in holding Power accountable, these huge, career-making stories were right there for the taking."

What's more, the media has been extremely hypocritical (no kidding) on some of these scandals. Take the IRS' targeting of Tea Party groups.

In early June an editorial published by the editorial staff at The New York Times was highly critical of the president over his administration's targeting of the phone records of millions of Americans, all in the name of protecting national security. And rightfully so; it is an abuse of the Fourth Amendment like no other in the history of the country.

There is no media in the Old Media

But more than a year before the IRS scandal broke, the Times was all about having the nation's tax collection agency target those very same groups.

"But because Obama told them to, the media hate the Tea Party. So in the face of these complaints and even a few Congressional inquiries, the media either ignored the harassment reports or openly sided with the IRS," wrote Nolte.

The same thing can be said about what happened in Libya. Because Barack Obama was in reelection mode; and because the mainstream media was all-in to help him get reelected; and because the president's reelection narrative on terrorism in general was that al Qaeda was on the run - the mainstream press willingly went along and refused to dig deeper on Benghazi. Had that failed operation been scrutinized, many more Americans would have known before Election Day that the administration essentially sacrificed Stevens and three other Americans for the sake of political expediency.

"Our media are not only biased; it is an utter and complete failure and embarrassment. And although there are plenty of remaining table scraps to make meals out of, the media are already losing interest in the IRS, Libya, and AP scandals, but for only one reason - they are absolutely terrified of where they might lead," Nolte writes.

Sources for this article include:

http://www.breitbart.com

http://www.guardian.co.uk

http://cnsnews.com

http://washingtonexaminer.com




All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml

Made Clear! ‘OBAMACARE’ In One Video…

Friday, June 14, 2013 7:35

One CAN NOT add more to this video..
(Explicit)    

One CAN NOT add more to this video..
(Explicit)            

*SMH*

Tracking People Online: The “Cyberwar” Against The American People is Over. The National Security Agency Has Won

This was 3 yrs ago folks ! just 'think' how much cell phones have changed since then???       feels good huh America ,we 's going god  we we weeeee we we weeeeee :O  .... hey? fix yer hat (tin foil)  LOL 

Tracking People Online: The “Cyberwar” Against The American People is Over. The National Security Agency Has Won


Tracking People Online: The "Cyberwar" Against The American People is Over. The National Security Agency Has Won
A “Memorandum of Agreement” struck last week between the Department of Homeland Security (DHS) and the National Security Agency (NSA) promises to increase Pentagon control over America’s telecommunications and electronic infrastructure.
It’s all in the interest of “cybersecurity” of course, or so we’ve been told, since much of the Comprehensive National Cybersecurity Initiative (CNCI) driving administration policy is a closely-held state secret.
Authority granted the über spy shop by the Bush and Obama administrations was handed to NSA by the still-classified National Security Presidential Directive 54, Homeland Security Presidential Directive 23 (NSPD 54/HSPD 23) in 2008 by then-President Bush.
The Agreement follows closely on the heels of reports last week by the Electronic Frontier Foundation (EFF) that DHS has been tracking people online and that the agency even established a “Social Networking Monitoring Center” to do so.
Documents obtained by EFF through a Freedom of Information Act lawsuit, revealed that the agency has been vacuuming-up “items of interest,” systematically monitoring “citizenship petitioners” and analyzing “online public communication.”
The documents suggest that “DHS collected a massive amount of data on individuals and organizations explicitly tied to a political event,” the Obama inauguration.
This inevitably raises a troubling question: what other “political events” are being monitored by government snoops? Following last month’s raids on antiwar activists by heavily-armed FBI SWAT teams, the answer is painfully obvious.
And with new reports, such as Monday’s revelations by The Wall Street Journal that Facebook “apps” have been “transmitting identifying information–in effect, providing access to people’s names and, in some cases, their friends’ names–to dozens of advertising and Internet tracking companies,” online privacy, if such a beast ever existed, is certainly now a thing of the past.
Project 12
With waning national interest in the “terrorism” product line, the “cybersecurity” roll-out (in stores in time for the holidays!) will drive hefty taxpayer investments–and boost the share price–for America’s largest defense and security firms; always a sure winner where it counts: on Wall Street.
The DHS-NSA Agreement came just days after publication of a leaked document obtained by the secrecy-shredding web site Public Intelligence (PI).
“In early 2008,” a PI analyst writes, “President Bush signed National Security Presidential Directive 54/Homeland Security Presidential Directive 23 (NSPD-54/HSPD-23) formalizing the Comprehensive National Cybersecurity Initiative (CNCI). This initiative created a series of classified programs with a total budget of approximately $30 billion. Many of these programs remain secret and their activities are largely unknown to the public.”
Amongst the programs stood up by CNCI “is an effort to encourage information sharing between the public and private sector called ‘Project 12′.”
The whistleblowing web site “recently acquired the key report from the Project 12 meetings: Improving Protection of Privately Owned Critical Network Infrastructure Through Public-Private Partnerships. This 35-page, For Official Use Only report is a guide to creating public-private partnerships that facilitate the implementation of ‘actionable recommendations that [reflect] the reality of shared responsibility between the public and private sectors with respect to securing the nation’s cyber assets, networks, systems, and functions’.”
According to the document, under the rubric of the National Infrastructure Protection Plan (NIPP), Project 12 recommends that “critical infrastructure and key resources (CIKR) be brought into federal cybersecurity efforts through a variety of means.”
As Antifascist Calling readers are well aware, for decades the secret state has outsourced “inherently governmental” functions to private entities. This process has served as a means to both shield illegal activities and avoid public accountability under a cloak of “proprietary business information.”
PI’s secret spillers tell us that Project 12 stresses the “promotion of public-private partnerships that legalize and facilitate the flow of information between federal entities and private sector critical infrastructure, such as telecommunications and transportation.”
“The ultimate goal of these partnerships” the analyst writes, “is not simply to increase the flow of ‘threat information’ from government agencies to private industry, but to facilitate greater ‘information sharing’ between those companies and the federal government.”
What information is to be shared or what the implications are for civil liberties and privacy rights are not spelled out in the report.
As can readily be seen in the dubious relationships forged amongst retired senior military personnel and the defense industry, a top level Pentagon position is entrée to an exclusive club where salary levels and perks, increase the higher one has climbed the food chain.
Much the same can be said for high-level intelligence officials. Indeed, former officials turned corporate executives constellating the security industry are among the most vociferous advocates for strengthening collaboration between the state and private sectors. And the more powerful players on the field are represented by lobby shops such as the Intelligence and National Security Alliance (INSA) and Business Executives for National Security (BENS).
Last year I reported that BENS are key players driving the national “cybersecurity” panic. In that piece I wrote that the group is a “self-described ‘nationwide, non-partisan organization’ [that] claims the mantle of functioning as ‘the primary channel through which senior business executives can help advance the nation’s security’.” Project 12 is one area where BENS power-brokers have excelled in mutual backscratching.
We are informed that “the cost of scoping and building a tool that meets the requirements for cyber real-time situational awareness is likely to be significant and would be a high-risk investment of Federal funding.” In other words, while taxpayers foot the bill, private corporations will reap the benefits of long-term contracts and future high-tech development projects.
However, “before making that investment, the U.S. Government and its information sharing security partners must define a clear scope and mission for the development of common situational awareness and should evaluate a variety of interim or simplified solutions.”
Those “solutions” won’t come cheap.
Market Research Media informs us that “the U.S. government sector witnesses a blossoming of investments in cyber security technologies.”
We’re told that with a “cumulative market valued at $55 billion (2010-2015), the U.S. Federal Cybersecurity market will grow steadily–at about 6.2% CAGR [compound annual growth rate] over the next six years.”
Those numbers reflect the merger and acquisition mania amongst America’s largest defense and security firms who are gobbling up the competition at ever-accelerating rates.
Washington Technology reported earlier this month that “government contractors specializing in the most attractive niche segments of the market are experiencing much more rapid growth and, accordingly, enjoying much higher valuation multiples upon selling their businesses than their more generalist counterparts.”
“The larger companies in the federal market” the insider publication reports, “continue to seek to aggressively position themselves as leaders in the cyber market.”
Amongst the “solutions” floated by Project 12 is the notion that “real-time” awareness can be achieved when “government resources” are “co-located with private industry, either virtually or physically, to help monitor security,” the PI’s analyst avers.
Therefore, “physical or virtual co-location would maximize the U.S. Government’s investment in network protection by facilitating collaborative analysis and coordinated protective and response measures and by creating a feedback loop to increase value for private-sector and government participants. Another key outcome would be stronger institutional and personal trust relationships among security practitioners across multiple communities.”
One firm, the spooky Science Applications International Corporation (SAIC) “formally opened its seven-story cyber innovation center in Columbia, not far from the site of the new Cyber Command at Fort Meade,” NSA headquarters, The Washington Post reported.
Talk about “co-location”! It doesn’t get much chummier than this!
In order to valorize secret state investments in the private sector, the development of “Information Sharing and Analysis Centers (ISACs),” or fusion centers, are encouraged. Who would control the information flows and threat assessments are unknown.
However, as the American Civil Liberties Union documented in their report, What’s Wrong with Fusion Centers, private sector participation in the intelligence process “break[s] down the arm’s length relationship that protects the privacy of innocent Americans who are employees or customers of these companies” while “increasing the risk of a data breach.”
This is all the more troubling when the “public-private partnership” envisioned by Project 12 operate under classified annexes of the Comprehensive National Cybersecurity Initiative.
NSA “Power-Grab”
Last year Rod Beckström, director of Homeland Security’s National Cybersecurity Center (NCSC), resigned from his post, citing threats of a NSA “power grab.”
In a letter highly-critical of government efforts to “secure” the nation’s critical infrastructure, Beckström said that NSA “effectively controls DHS cyber efforts through detailees [and] technology insertions.”
Citing NSA’s role as the secret state’s eyes and ears peering into electronic and telecommunications’ networks, Beckström warned that handing more power to the agency could significantly threaten “our democratic processes…if all top level government network security and monitoring are handled by any one organization.”
The administration claimed last week that the Agreement will “increase interdepartmental collaboration in strategic planning for the Nation’s cybersecurity, mutual support for cybersecurity capabilities development, and synchronization of current operational cybersecurity mission activities,” and that DHS and NSA will embed personnel in each agency.
We’re informed that the Agreement’s implementation “will focus national cybersecurity efforts, increasing the overalI capacity and capability of both DHS’s homeland security and DoD’s national security missions, while providing integral protection for privacy, civil rights, and civil liberties.”
Accordingly, the “Agreement is authorized under the provisions of the Homeland Security Act (2002); the Economy Act; U.S. Code Title 10; Executive Order 12333; National Security Directive 42; Homeland Security Presidential Directive-5; Homeland Security Presidential Directive-7; and National Security Presidential Directive­ 54/Homeland Security Presidential Directive-23.”
What these “authorizations” imply for civil liberties and privacy rights are not stated. Indeed, like NSPD 54/HSPD 23, portions of National Security Directive 42, HSPD 5, and HSPD 7 are also classified.
And, as described above, top secret annexes of NSPD 54/HSPD 23 enabling the Comprehensive National Cybersecurity Initiative means that the American people have no way of knowing what these programs entail, who decides what is considered “actionable intelligence,” or where–and for what purpose–private communications land after becoming part of the “critical infrastructure and key resources” landscape.
We’re told that the purpose of the Agreement “is to set forth terms by which DHS and DoD will provide personnel, equipment, and facilities in order to increase interdepartmental collaboration in strategic planning for the Nation’s cybersecurity, mutual support for cybersecurity capabilities development, and synchronization of current operational cybersecurity mission activities.”
The text specifies that the Agreement will “focus national cybersecurity efforts” and provide “integral protection for privacy, civil rights, and civil liberties.”
However, as the premier U.S. eavesdropping organization whose “national security mission” is responsible for setting data encryption standards, NSA was ultimately successful in weakening those standards in the interest of facilitating domestic spying.
Indeed, The Wall Street Journal reported in 2008 “the spy agency now monitors huge volumes of records of domestic emails and Internet searches as well as bank transfers, credit-card transactions, travel and telephone records.”
Investigative journalist Siobhan Gorman informed us that the “NSA enterprise involves a cluster of powerful intelligence-gathering programs” that include “a Federal Bureau of Investigation program to track telecommunications data once known as Carnivore, now called the Digital Collection System, and a U.S. arrangement with the world’s main international banking clearinghouse to track money movements.”
“The effort” the Journal revealed, “also ties into data from an ad-hoc collection of so-called ‘black programs’ whose existence is undisclosed,” and include programs that have “been given greater reach” since the 9/11 provocation.
The civilian DHS Cybersecurity Coordinator will take a backseat to the Pentagon since the office “will be located at the National Security Agency (NSA)” and “will also act as the DHS Senior Cybersecurity Representative to U.S. Cyber Command (USCYBERCOM).”
Personnel will be assigned by DHS “to work at NSA as part of a Joint Coordination Element (JCE) performing the functions of joint operational planning, coordination, synchronization, requirement translation, and other DHS mission support for homeland security for cybersecurity,” and will “have current security clearances (TS/SCI) upon assignment to NSA, including training on the appropriate handling and dissemination of classified and sensitive information in accordance with DoD, Intelligence Community and NSA regulations.”
TS/SCI (Top Secret/Sensitive Compartmented Information) clearances mean that while civilian DHS employees may have access to NSA and Pentagon “black” surveillance programs, they will be restricted from reporting up their chain of command, or to congressional investigators, once they have been “read” into them. This makes a mockery of assertions that the Agreement does “not alter … command relationships.” The mere fact that DHS personnel will have TS/SCI clearances mean just the opposite.
DHS will “provide appropriate access, administrative support, and space for an NSA Cryptologic Services Group (CSO) and a USCYBERCOM Cyber Support Element (CSE) collocated with the National Cybersecurity and Communications Integration Center (NCCIC), at DHS, and integration into DHS’s cybersecurity operational activities.”
In other words, the civilian, though sprawling DHS bureaucracy will play host for NSA and CYBERCOM personnel answering to the Pentagon, and subject to little or no oversight from congressional committees already asleep at the switch, “to permit both CSG and CSE entities the capability to carry out their respective roles and responsibilities.”
Despite boilerplate that “integral protection for privacy, civil rights, and civil liberties” will be guaranteed by the Agreement, there is no hiding the fact that a NSA power-grab has been successfully executed.
The Agreement further specifies that DHS and NSA will engage “in joint operational planning and mission coordination” and that DHS, DoD, NSA and CYBERCOM “maintain cognizance” of “cybersecurity activities, to assist in deconfliction and promote synchronization of those activities.”
Following Project 12 revelations, new secret state relationships will assist “in coordinating DoD and DHS efforts to improve cybersecurity threat information sharing between the public and private sectors to aid in preventing, detecting, mitigating, and/or recovering from the effects of an attack, interference, compromise, or incapacitation related to homeland security and national security activities in cyberspace.”
However, we do not learn whether “information sharing” includes public access, or even knowledge of, TS/SCI “black programs” which already aim powerful NSA assets at the American people. In fact, the Agreement seems to work against such disclosures.
This is hardly a level playing field since NSA might “receive and coordinate DHS information requests,” NSA controls the information flows “as appropriate and consistent with applicable law and NSA mission requirements and authorities, in operational planning and mission coordination.” The same strictures apply when it comes to information sharing by U.S. Cyber Command.
As Rod Beckström pointed out in his resignation letter, NSA “effectively controls DHS cyber efforts through detailees [and] technology insertions.”
Despite the Agreement’s garbled bureaucratese, we can be sure of one thing: the drift towards militarizing control over Americans’ private communications will continue.
Tom Burghardt is a researcher and activist based in the San Francisco Bay Area. In addition to publishing in Covert Action Quarterly and Global Research, an independent research and media group of writers, scholars, journalists and activists based in Montreal, his articles can be read on Dissident Voice, The Intelligence Daily, Pacific Free Press, Uncommon Thought Journal, and the whistleblowing website WikiLeaks. He is the editor of Police State America: U.S. Military “Civil Disturbance” Planning, distributed by AK Press and has contributed to the new book from Global Research, The Global Economic Crisis: The Great Depression of the XXI Century.

The National Security Agency: A Global Superpower


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Recent revelations that the U.S. National Security Agency is conducting massive meta-data vacuuming of the phone calls and Internet transactions of tens of millions of Americans and, perhaps, billions of people around the world, with little or no effective oversight by President Obama, the U.S. Congress, or the federal court system means that the intelligence agency has become, in its own right, a global superpower.
NSA acts like a virtual «state within a state». The director of NSA, a four-star flag officer, also wears the hat of Commander of the U.S. Cyber Command, the chief cyber-warfare echelon within the Department of Defense. Just as any nation-state, NSA also has alliances with similar signals intelligence and cyber-warfare agencies around the world, including Britain’s Government Communications Headquarters (GCHQ), Australia’s Defense Signals Directorate (DSD), Communications Security Establishment Canada (CSEC), and the Government Communications Security Board (GCSB) of New Zealand. These English-speaking partners are known as the «Five Eyes» countries and the signals intelligence alliance began after World War II and grew in scope during the Cold War.
NSA also has «third party» intelligence sharing agreements with a number of other signals intelligence agencies, but these smaller agencies are like NSA;’s very own colonial territories. Third party signals intelligence agencies of countries like Germany, Japan, South Korea, Denmark, Norway, Italy, Spain, and Thailand are expected to feed their intelligence «take» into the massive computer databases NSA maintains at its headquarters in Fort Meade, Maryland, but these Third Party entities receive very little intelligence in return. In fact, the Five Eyes «Second party» partners of NSA receive relatively little intelligence from NSA in exchange for the massive amounts of intercepted communications they make available to NSA. Even  more secretive are NSA’s «Fourth Party» partners, including neutral Sweden, Finland, Austria, and Switzerland and, in what may pose a problem for Snowden, last reportedly in Hong Kong, the People’s Republic of China has been a «Fourth Party» partner of NSA since the early 1980s. NSA maintained two eavesdropping stations in western China directed against the nuclear testing facilities of the Soviet Union and then Russia.
It has been a common practice for NSA and its international partners to keep secret the activities of the NSA from even prime ministers. New Zealand Labor Party Prime Minister David Lange, who served in office from 1984 to 1989, stated that he and other ministers «were told so little « about the activities of NSA and GCSB and that this raised the question as to whom those concerned with international electronic surveillance saw themselves ultimately responsible.  Later found in Lange’s archived papers was  a 31-page TOP SECRET UMBRA HANDLE VIA COMINT CHANNELS ONLY GCSB report on New Zealand’s communications intercepts on behalf of NSA of targets in the South Pacific and Antarctica.
In 1975, when Australian Labor Party Prime Minister Gough Whitlam demanded information on the activities of NSA bases in Alice Springs and Woomera, Australia, the U.S., working with Australian intelligence, prevailed upon the Australian Governor General Sir John Kerr, to depose Whitlam and appoint the conservative and pro-U.S. opposition leader as prime minister. In effect, NSA ensured that a democratically-elected government was overthrown in a bloodless and seemingly constitutional coup d’état.
NSA’s intelligence collections programs, including the PRISM meta-data vacuuming and storage and retrieval system exposed by NSA contractor whistleblower Edward Snowden, allegedly operate under U.S. government «oversight». However, the congressional oversight, the Intelligence Committees of the U.S. Senate and House of Representatives, are mere rubber stamp entities, as is the chief judicial oversight body, the Foreign Intelligence Surveillance Court (FISC). The FISC, which was established by the Foreign Intelligence Surveillance Act of 1978 in response to the surveillance abuses of the NSA, FBI, and CIA during the Lyndon Johnson and Richard Nixon presidencies, was tasked with ensuring that any use of NSA to conduct domestic surveillance was subject to a court order from the FISC. However, the FISC is a secret court and its decisions are classified. It has rarely denied a government request for a surveillance warrant in its entire history.
Internal NSA regulations intended to protect the communications of U.S. citizens from snooping largely went by the wayside after the 9/11 attack, an event that was extremely fortuitous for surveillance enthusiasts in the NSA top hierarchy.
After 9/11, NSA began to expand its operations and capabilities. Due to commence operations in September this year is a massive $2 billion NSA computing facility in Utah, known as «NSA Utah,» that will be able to process and store in a computer space the size of 17 football fields a yottabyte of data, which is equivalent to a quadrillion gigabytes of data. NSA Utah will be the mother lode of the NSA’s PRISM meta-data, including communications intercepts and direct feeds from the servers of Microsoft, Google, Apple, Skype, Yahoo, Facebook, PalTalk, AOL, Youtube, and DropBox. There are reports that Twitter will soon be pressured to join the surveillance program. As influential as some of the aforementioned companies are, they are miniscule compared to the NSA superpower.
Joining NSA Utah will be an $860 million, 600,000 square feet, High Performance Computing Center at NSA’s Fort Meade «campus» headquarters. There is another new NSA massive computing center at Oak Ridge National Laboratory in Tennessee. Adding to these are massive Regional Security Operations Centers (RSOCs) at facilities known as «NSA Georgia» in Fort Gordon, «NSA Texas» in San Antonio, and «NSA Hawaii» in Kunia on Oahu. It was at Kunia where Snowden gained access to classified documents on PRISM, NSA access to Verizon phone calls and emails, and a global interception system known as BOUNDLESSINFORMANT.
Classified maps of BOUNDLESSINFORMANT Global Access Operations (GAOs) show that the number one target for NSA surveillance is Iran, followed by Pakistan, with Jordan, Egypt, and India in third, fourth, and fifth place, respectively. Kenya, the country of President Barack Obama’s paternal heritage, was the number one target for NSA surveillance in sub-Saharan Africa. Germany, a «third party» partner of NSA, tops all other countries in Europe as NSA’s number one target. Other major NSA targets are Afghanistan, Iraq, China, Yemen, Saudi Arabia, and the United Arab Emirates. Astoundingly, NSA spies on the United States more than it does on Russia, North Korea, Somalia, Cuba, or Venezuela.
NSA’s largest foreign operational center is in Menwith Hill, England. The Menwith Hill base works closely with GCHQ, which is headquartered in a massive structure in Cheltenham, England, which is nicknamed «The Doughnut» because of its shape. Others say the building looks like an eye. Not to be left behind, CSEC is building a C$880 million, 775,000 square feet new headquarters southeast of Ottawa. Australia’s DSD operates a large satellite communication intercept facility in Geraldton, West Australia.
Rather than curtail the powers of NSA after the Cold War, the U.S. Congress and Bush I, Clinton, Bush II, and Obama administrations have presided over the omniscient agency’s expansion and greater powers of surveillance. NSA has an internal security force, the «Q Group,» that conducts its own investigations with or without the assistance of the FBI. NSA is the second largest employer in the state of Maryland, surpassed only by the U.S. Postal Service. NSA’s clout as an employer allows the agency to run roughshod over elected state officials and members of Maryland’s congressional delegation. In Maryland, there is no such thing as saying «no» to the NSA.
NSA’s cyber-warriors have the capability to shut down banking networks, generate power blackouts to major metropolitan regions, throw a «kill switch» on the Internet in particular countries and regions, and manipulate vote counting and election results reporting. There is very little independent oversight of these dangerous operations.
Edward Snowden claims that an NSA operator with the necessary «authorities» or access rights can read the personal email of anyone, including the President of the United States. If a low-level technician like Snowden could read such personal email or listen in on private phone calls, the capability of NSA to blackmail politicians from Maine to California and Argentina to Zambia stands as a stark example of the power that is in the hands of the NSA director. It is also worrisome that NSA’s current commander, U.S. Army General Keith Alexander, attended the elitist and secretive Bilderberg Conference in 2012, 2011, 2010, 2009, and 2008. As David Lange once asked, «to whom do those who have the power of total surveillance see themselves ultimately responsible?» NSA’s General Alexander appears to be beholden more to the unelected wealthy and privileged doyens of capitalism than to either the American people or their elected representatives in the Congress.

The History of America’s Secret Wars: Corporate Espionage and the Outsourcing of National Security

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This text is excerpted from Big Lies: How Our Corporate Overlords, Politicians and Media Establishment Warp Reality and Undermine Democracy
Pre-9/11 Flashback
When NATO’s US and British troops in Macedonia began evacuating Albanian rebels in June 2001, officials claimed that they were merely trying to help Europe avert a devastating civil war. Most media dutifully repeated this spin as fact. But the explanation only made sense if you ignored a troublesome contradiction; namely, US support for both the Macedonian Armed Forces and the Albanians fighting them. Beyond that, there was a decade of confused and manipulative Western policies, climaxing with NATO bombing and the imposition of “peace” through aggression in Kosovo. Together, these moves effectively destabilized the region.
In Macedonia, the main “cut out” – spook-speak for “intermediary” –was Military Professional Resources, Inc. (MPRI), then a major private military company (PMC) whose Macedonian field commander was a former US general with strong ties to Kosovo Liberation Army Commander Agim Ceku and Macedonian General Jovan Andrejevski.
MPRI and other PMCs that have succeeded it receive much of their funding from the US State Department, Pentagon, and CIA. For example, MPRI trained and equipped the Bosnian Croat Muslim Federation Army with a large State Department contract. Over the years, the company claimed to have “helped” Croatia, Serbia, Bosnia, and Macedonia – in effect, arming and training all parties. In 2000, it pulled in at least $70 million from its global operations.
Working closely with the Pentagon, MPRI also arranged for the Kosovo Liberation Army’s (KLA) training and weapons in the run up to the war on Yugoslavia. Later, the same firm channeled token military aid to the Macedonian army, new US weapons to the rebels, and military intelligence to both sides.
Actually, it was a standard procedure, applied with great success in the Middle East for decades: Keep warring parties from overwhelming one other and you strengthen the bargaining power of the puppeteer behind the scenes. Better yet, combine this with disinformation; that is, tell the public one thing while doing the opposite.
It’s not a question of allies and enemies. Those designations can change for any number of reasons. In 1999, ethnic Albanians were victims and freedom fighters. In 2001, they were “officially” a threat. Manuel Noriega, Saddam Hussein, and Osama bin Laden were just three of the friends-turned-pariahs who learned that lesson.
And what was the real objective in Macedonia? The country was in a financial straight jacket, its budget basically controlled by the IMF and the World Bank on behalf of international creditors. Since the IMF had placed a ceiling on military expenditures, the only funding option left was privatization. According to Jane’s Defense Weekly, the process started with the sale of the government’s stake in Macedonian Telekom.
Even more was at stake – things like strategic pipeline routes and transport corridors through the country. But that wouldn’t become obvious for years, if ever. This is another traditional tactic: Keep the true agenda under wraps for as long as possible.
Pretexts for War
Despite 24-hour news and talk about transparency, there’s much we don’t know about our past, much less current events. What’s worse, some of what we think we know isn’t true.
The point is that it’s no accident. Consider, for example, the proximate circumstances that led to open war in Vietnam. According to official history, two US destroyers patrolling in the Gulf of Tonkin off North Vietnam were victims of unprovoked attacks in August 1964, leading to a congressional resolution that gave President Johnson the power “to take all necessary measures.”
In fact, the destroyers were spy ships, part of a National Security Agency (NSA) eavesdropping program operating near the coast as a way to provoke the North Vietnamese into turning on their radar and other communications channels. The more provocative the maneuvers, the more signals that could be captured. Meanwhile, US raiding parties were shelling mainland targets. Documents revealed later indicated that the August 4 attack on the USS Maddox – the pretext for passing the Gulf of Tonkin Resolution – may not even have taken place.
But even if it did, the incident was still stage managed to build up congressional and public support for the war. Evidence suggests that the plan was based on Operation Northwoods, a scheme developed in 1962 to justify an invasion of Cuba. Among the tactics the Joint Chiefs of Staff considered then were blowing up a ship in Guantanamo Bay, a phony “communist Cuba terror campaign” in Florida and Washington, DC, and an elaborate plan to convince people that Cuba had shot down a civilian airliner filled with students. That operation wasn’t implemented, but two years later, desperate for a war, the administration’s military brass found a way to create the necessary conditions in Vietnam.
NSA and Echelon
For more than half a century, the eyes and ears of US power to monitor and manipulate information (and with it, mass perceptions) has been the NSA, initially designed to assist the CIA. Its original task was to collect raw information about threats to US security, cracking codes and using the latest technology to provide accurate intelligence on the intentions and activities of enemies. Emerging after World War II, its early focus was the Soviet Union. But it never did crack a high-level Soviet cipher system. On the other hand, it used every available means to eavesdrop on not only enemies but also allies and US citizens.
In Body of Secrets, James Bamford described a bureaucratic and secretive behemoth, based in an Orwellian Maryland complex known as Crypto City. From there, supercomputers linked it to spy satellites, subs, aircraft, and equally covert, strategically placed listening posts worldwide. By 2000, it had a $7 billion annual budget and directly employed at least 38,000 people, more than the CIA and FBI. It was also the leader of an international intelligence club, UKUSA, which includes Britain, Canada, Australia, and New Zealand. Together, they monitored and recorded billions of encrypted communications, telephone calls, radio messages, faxes, and e-mails around the world.
Over the years, however, the line between enemies and friends blurred, and the intelligence gatherers often converted their control of information into unilateral power, influencing the course of history in ways that may never be known. No doubt the agency has had a hand in countless covert operations; yet, attempts to pull away the veil of secrecy have been largely unsuccessful.
In the mid-1970s, for example, just as Congress was attempting to reign in the CIA, the NSA was quietly creating a virtual state, a massive international computer network named Platform. Doing away with formal borders, it developed a software package that turned worldwide Sigint (short for “signal intelligence”: communication intelligence, eavesdropping, and electronic intelligence) into a unified whole. An early software package was code named Echelon, a name later connected with eavesdropping on commercial communication.
Of course, the NSA and its British sister, the Government Communications Headquarters (GCHQ), refused to admit Echelon existed, even though declassified documents appeared on the Internet and Congress conducted an investigation. A European Parliament report also confirmed Echelon’s activities, and encouraged Internet users and governments to adopt stronger privacy measures in response.
In March 2001, several ranking British politicians discussed Echelon’s potential impacts on civil liberties, and a European Parliament committee considered its legal, human rights, and privacy implications. The Dutch held similar hearings, and a French National Assembly inquiry urged the European Union to embrace new privacy enhancing technologies to protect against Echelon’s eavesdropping. France launched a formal investigation into possible abuses for industrial espionage.
When Allies Compete
A prime reason for Europe’s discontent was the suspicion that the NSA had used intercepted conversations to help US companies win contracts heading for European firms. The alleged losers included Airbus, a consortium including interests in France, Germany, Spain, and Britain, and Thomson CSF, a French electronics company. The French claimed they had lost a $1.4 billion deal to supply Brazil with a radar system because the NSA shared details of the negotiations with Raytheon. Airbus may have lost a contract worth $2 billion to Boeing and McDonnell Douglas because of information intercepted and passed on by the agency.
According to former NSA agent Wayne Madsen, the US used information gathered from its bases in Australia to win a half share in a significant Indonesian trade contract for AT&T. Communication intercepts showed the contract was initially going to a Japanese firm. A bit later a lawsuit against the US and Britain was launched in France, judicial and parliamentary investigations began in Italy, and German parliamentarians demanded an inquiry.
The rationale for turning the NSA loose on commercial activities, even those involving allies, was provided in the mid-90s by Sen. Frank DeConcini, then chairman of the Senate Intelligence Committee. “I don’t think we should have a policy where we’re going to invade the Airbus inner sanctum and find out their secrets for the purpose of turning it over to Boeing or McDonnell Douglas,” he opined. “But if we find something, not to share it with our people seems to me to be not smart.” President Bill Clinton and other US officials buttressed this view by charging that European countries were unfairly subsidizing Airbus. In other words, competition with significant US interests can be a matter of national security, and private capitalism must be protected from state-run enterprises.
The US-Europe row about Airbus subsidies was also used as a “test case” for scientists developing new intelligence tools. At US Defense Department conferences on “text retrieval,” competitions were staged to find the best methods. A standard test featured extracting protected data about “Airbus subsidies.”
 Manipulating Democracy
In the end, influencing the outcome of huge commercial transactions is but the tip of this iceberg. The NSA’s ability to listen to virtually any transmitted communication has enhanced the power of unelected officials and private interests to set covert foreign policy in motion. In some cases, the objective is clear and arguably defensible: taking effective action against terrorism, for example. But in others, the grand plans of the intelligence community have led it to undermine democracies.
The 1975 removal of Australian Prime Minister Edward Whitlam is an instructive case. At the time of Whitlam’s election in 1972, Australian intelligence was working with the CIA against the Allende government in Chile. The new PM didn’t simply order a halt to Australia’s involvement, explained William Blum in Killing Hope, a masterful study of US interventions since World War II. Whitlam seized intelligence information withheld from him by the Australian Security and Intelligence Organization (ASIO), and disclosed the existence of a joint CIA-ASIO directorate that monitored radio traffic in Asia. He also openly disapproved of US plans to build up the Indian Ocean Island of Diego Garcia as a military-intelligence-nuclear outpost.
Both the CIA and NSA became concerned about the security and future of crucial intelligence facilities in and near Australia. The country was already key member of UKUSA. After launching its first space-based listening post-a microwave receiver with an antenna pointed at earth-NSA had picked an isolated desert area in central Australia as a ground station. Once completed, the base at Alice Springs was named Pine Gap, the first of many listening posts to be installed around the world. For the NSA and CIA, Whitlam posed a threat to the secrecy and security of such operations.
An early step was covert funding for the political opposition, in hopes of defeating Whitlam’s Labor Party in 1974. When that failed, meetings were held with the Governor-General, Sir John Kerr, a figurehead representing the Queen of England who had worked for CIA front organizations since the 50s. Defense officials warned that intelligence links would be cut off unless someone stopped Whitlam. On November 11, 1975, Kerr responded, dismissing the prime minister, dissolving both houses of Parliament, and appointing an interim government until new elections were held.
According to Christopher Boyce (subject of The Falcon and the Snowman, a fictionalized account), who watched the process while working for TRW in a CIA-linked cryptographic communications center, the spooks also infiltrated Australian labor unions and contrived to suppress transportation strikes that were holding up deliveries to US intelligence installations. Not coincidentally, some unions were leading the opposition to development of those same facilities.
How often, and to what effect, such covert ops have succeeded is another of the mysteries that comprise an unwritten history of the last half century. Beyond that, systems like Echelon violate the human right to individual privacy, and give those who control the information the ability to act with impunity, sometimes destroying lives and negating the popular will in the process.
Hiding the Agenda in Peru
In May 1960, when a U-2 spy plane was shot down over Soviet territory, President Dwight Eisenhower took great pains to deny direct knowledge or authorization of the provocative mission. In reality, he personally oversaw every U-2 mission, and had even riskier and more provocative bomber overflights in mind.
It’s a basic rule of thumb for covert ops: When exposed, keep denying and deflect the blame. More important, never, never let on that the mission itself may be a pretext, or a diversion from some other, larger agenda.
Considering that, the April 20, 2001, shoot down of a plane carrying missionaries across the Brazilian border into Peru becomes highly suspicious. At first, the official story fed to the press was that Peruvian authorities ordered the attack on their own, over the pleas of the CIA “contract pilots” who initially spotted the plane. But Peruvian pilots involved in that program, supposedly designed to intercept drug flights, insist that nothing was shot down without US approval.
Innocent planes were sometimes attacked, but most were small, low flying aircraft that didn’t file flight plans and had no radios. This plane maintained regular contact and did file a plan. Still, even after it crash-landed, the Peruvians continued to strafe it, perhaps in an attempt to ignite the plane’s fuel and eliminate the evidence.
“I think it has to do with Plan Colombia and the coming war,” said Celerino Castillo, who had previously worked in Peru for Drug Enforcement Agency. “The CIA was sending a clear message to all non-combatants to clear out of the area, and to get favorable press.” The flight was heading to Iquitos, which “is at the heart of everything the CIA is doing right now,” he added. “They don’t want any witnesses.”
Timing also may have played a part. The shoot down occurred on the opening day of the Summit of the Americas in Quebec City. Uruguay’s President Jorge Ibanez, who had proposed the worldwide legalization of drugs just weeks before, was expected to make a high-profile speech on his proposal at the gathering. The downing of a drug smuggling plane at this moment, near territory held by Colombia’s FARC rebels, would help to defuse Uruguay’s message and reinforce the image of the insurgents as drug smugglers.
If you doubt that the US would condone such an operation or cover it up, consider this: In 1967, Israel torpedoed the USS Liberty, a large floating listening post, as it was eavesdropping on the Arab-Israeli war off the Sinai Peninsula. Hundreds of US sailors were wounded and killed, probably because Israel feared that its massacre of Egyptian prisoners at El Arish might be overheard. How did the Pentagon respond? By imposing a total news ban, and covering up the facts for decades.
Will we ever find out what really happened in Peru, specifically why a missionary and her daughter were killed? Not likely, since it involves a private military contractor that is basically beyond the reach of congressional accountability.
In 2009, when the Peru shoot down became one of five cases of intelligence operation cover up being investigated by the US House Intelligence Committee, the CIA inspector general concluded that the CIA had improperly concealed information about the incident. Intelligence Oversight and Investigations Subcommittee Chairwoman Jan Schakowsky, who led the investigation, didn’t rule out referrals to the Justice Department for criminal prosecutions if evidence surfaced that intelligence officials broke the law. But she couldn’t guarantee that the facts would ever come to light, since the Committee’s report of its investigation would be classified.
The most crucial wrinkle in the Peruvian incident is the involvement of DynCorp, which was active in Colombia and Bolivia under large contracts with various US agencies. The day after the incident, ABC news reported that, according to “senior administration officials,” the crew of the surveillance plane that first identified the doomed aircraft “was hired by the CIA from DynCorp.” Within two days, however, all references to DynCorp were scrubbed from ABC’s Website. A week later, the New York Post claimed the crew actually worked for Aviation Development Corp., allegedly a CIA proprietary company.
Whatever the truth, State Department officials refused to talk on the record about DynCorp’s activities in South America. Yet, according to DynCorp’s State Department contract, the firm had received at least $600 million over the previous few years for training, drug interdiction, search and rescue (which included combat), air transport of equipment and people, and reconnaissance in the region. And that was only what they put on paper. It also operated government aircraft and provided all manner of personnel, particularly for Plan Colombia.
 Outsourcing Defense
DynCorp began in 1946 as the employee-owned air cargo business California Eastern Airways, flying in supplies for the Korean War. This and later government work led to charges that it was a CIA front company. Whatever the truth, it ultimately became a leading PMC, hiring former soldiers and police officers to implement US foreign policy without having to report to Congress.
The push to privatize war gained traction during the first Bush administration. After the first Gulf War, the Pentagon, then headed by Defense Secretary Dick Cheney, paid a Halliburton subsidiary nearly $9 million to study how PMCs could support US soldiers in combat zones, according to a Mother Jones investigation. Cheney subsequently became CEO of Halliburton, and Brown & Root, later known as Halliburton KBR, won billions to construct and run military bases, some in secret locations.
One of DynCorp’s earliest “police” contracts involved the protection of Haitian President Jean-Bertrand Aristide, and, after he was ousted, providing the “technical advice” that brought military officers involved in that coup into Haiti’s National Police. Despite this dodgy record, in 2002 it won the contract to protect another new president, Afghanistan’s Hamid Karzai. By then, it was a top IT federal contractor specializing in computer systems development, and also providing the government with aviation services, general military management, and security expertise.
Like other private military outfits, the main danger it has faced is the risk of public exposure. Under one contract, for example, DynCorp sprayed vast quantities of herbicides over Colombia to kill the cocaine crop. In September 2001, Ecuadorian Indians filed a class action lawsuit, charging that DynCorp recklessly sprayed their homes and farms, causing illnesses and deaths and destroying crops. In Bosnia, private police provided by DynCorp for the UN were accused of buying and selling prostitutes, including a 12-year-old girl. Others were charged with videotaping a rape.
In the first years of the 21st century, DynCorp’s day-to-day operations in South America were overseen by State Department officials, including the Narcotic Affairs Section and the Air Wing, the latter a clique of unreformed cold warriors and leftovers from 80s operations in Central America. It was essentially the State Department’s private air force in the Andes, with access to satellite-based recording and mapping systems. In the 1960s, a similar role was played by the Vinnell Corp., which the CIA called “our own private mercenary army in Vietnam.” Vinnell later became a subsidiary of TRW, a major NSA contractor, and employed US Special Forces vets to train Saudi Arabia’s National Guard. In the late 1990s, TRW hired former NSA director William Studeman to help with its intelligence program.
DynCorp avoided the kind of public scandal that surrounded the activities of Blackwater. In Ecuador, where it developed military logistics centers and coordinated “anti-terror” police training, the exposure of a secret covenant signed with the Aeronautics Industries Directorate of the Ecuadorian Air Force briefly threatened to make waves. According to a November 2003 exposé in Quito’s El Comercio, the arrangement, hidden from the National Defense Council, made DynCorp’s people part of the US diplomatic mission.
In Colombia, DynCorp’s coca eradication and search-and-rescue missions led to controversial pitched battles with rebels. US contract pilots flew Black Hawk helicopters carrying Colombian police officers who raked the countryside with machine gun fire to protect the missions against attacks. According to investigative reporter Jason Vest, DynCorp employees were also implicated in narcotics trafficking. But such stories didn’t get far, and, in any case, DynCorp’s “trainers” simply ignored congressional rules, including those that restrict the US from aiding military units linked to human rights abuses.
In 2003, DynCorp won a multimillion-dollar contract to build a private police force in post-Saddam Iraq, with some of the funding diverted from an anti-drug program for Afghanistan. In 2004, the State Department further expanded DynCorp’s role as a global US surrogate with a $1.75 billion, five year contract to provide law enforcement personnel for civilian policing operations in “post-conflict areas” around the world. That March, the company also got an Army contract to support helicopters sold to foreign countries. The work, described as “turnkey” services, includes program management, logistics support, maintenance and aircrew training, aircraft maintenance and refurbishment, repair and overhaul of aircraft components and engines, airframe and engine upgrades, and the production of technical publications.
In short, DynCorp was a trusted partner in the military-intelligence-industrial complex. “Are we outsourcing order to avoid public scrutiny, controversy or embarrassment?” asked Rep. Schakowsky upon submitting legislation to prohibit US funding for private military firms in the Andean region. “If there is a potential for a privatized Gulf of Tonkin incident, then the American people deserve to have a full and open debate before this policy goes any further.”
If and when that ever happens, the discussion will have to cover a lot of ground. Private firms, working in concert with various intelligence agencies, constitute a vast foreign policy apparatus that is largely invisible, rarely covered by the corporate press, and not currently subject to congressional oversight. The Freedom of Information Act simply doesn’t apply. Any information on whom they arm or how they operate is private, proprietary information.
The US government downplays its use of mercenaries, a state of affairs that could undermine any efforts to find out about CIA activities that are concealed from Congress. Yet private contractors perform almost every function essential to military operations, a situation that has been called the “creeping privatization of the business of war.” By 2004, the Pentagon was employing more than 700,000 private contractors.
The companies are staffed by former generals, admirals, and highly trained officers. Name a hot spot and some PMC has people there. DynCorp has worked on the Defense Message System Transition Hub and done long-range planning for the Air Force. MPRI had a similar contract with the Army, and for a time coordinated the Pentagon’s military and leadership training in at least seven African nations.
How did this outsourcing of defense evolve? In 1969, the US Army had about 1.5 million active duty soldiers. By 1992, the figure had been cut by half. Since the mid-1990s, however, the US has mobilized militarily to intervene in several significant conflicts, and a corporate “foreign legion” has filled the gap between foreign policy imperatives and what a downsized, increasingly over-stretched military can provide.
Use of high technology equipment feeds the process. Private companies have technical capabilities that the military needs, but doesn’t always possess. Contractors have maintained stealth bombers and Predator unmanned drones used in Afghanistan and Iraq. Some military equipment is specifically designed to be operated and maintained by private companies.
In Britain, the debate over military privatization has been public, since the activities of the UK company Sandline in Sierra Leone and Papua New Guinea embarrassed the government in the late 1990s. But no country has clear policies to regulate PMCs, and the limited oversight that does exist rarely works. In the US, they have largely escaped notice, except when US contract workers in conflict zones are killed or go way over the line, as in the case of Blackwater.
According to Guy Copeland, who began developing public-private IT policy in the Reagan years, “The private sector must play an integral role in improving our national cybersecurity.” After all, he has noted, private interests own and operate 85 percent of the nation’s critical IT infrastructure. He should know. After all, Copeland drafted much of the language in the Bush Administration’s 2002 National Strategy to Secure Cyberspace as co-chair of the Information Security Committee of the Information Technology Association of America.
Nevertheless, when the federal government becomes dependent on unaccountable, private companies like DynCorp and Blackwater (later renamed Xe Services) for so many key security services, as well as for military logistics, management, strategy, expertise and “training,” fundamental elements of US defense have been outsourced. And the details of that relationship are matters that the intelligence community will fight long and hard to keep out of public view.
Corporate Connections and “Soft Landings”
Although the various departments and private contractors within the military-intelligence-industrial complex occasionally have turf battles and don’t always share information or coordinate strategy as effectively as they might, close and ongoing contact has long been considered essential. And it has expanded as a result of the information revolution. The entire intelligence community has its own secret Intranet, which pulls together FBI reports, NSA intercepts, analysis from the DIA and CIA, and other deeply covert sources.
Private firms are connected to this information web through staff, location, shared technology, and assorted contracts. Working primarily for the Pentagon, for example, L-3 Communications, a spinoff from major defense contractor Lockheed Martin, has manufactured hardware like control systems for satellites and flight recorders. MPRI, which was bought by L-3, provided services like its operations in Macedonia. L-3 also built the NSA’s Secure Terminal Equipment, which instantly encrypts phone conversations.
Another private contractor active in the Balkans was Science Applications, staffed by former NSA and CIA personnel, and specializing in police training. When Janice Stromsem, a Justice Department employee, complained that its program gave the CIA unfettered access to recruiting agents in foreign police forces, she was relieved of her duties. Her concern was that the sovereignty of nations receiving aid from the US was being compromised.
In 1999, faced with personnel cuts, the NSA offered over 4000 employees “soft landing” buy outs to help them secure jobs with defense firms that have major NSA contracts. NSA offered to pay the first year’s salary, in hopes the contractor would then pick up the tab. Sometimes the employee didn’t even have to move away from Crypto City. Companies taking part in the program included TRW and MPRI’s parent company, Lockheed Martin.
Lockheed was also a winner in the long-term effort to privatize government services. In 2000, it won a $43.8 million contract to run the Defense Civilian Personnel Data System, one of the largest human resources systems in the world. As a result, a major defense contractor took charge of consolidating all Department of Defense personnel systems, covering hiring and firing for about 750,000 civilian employees. This put the contractor at the cutting edge of Defense Department planning, and made it a key gatekeeper at the revolving door between the US military and private interests.
Invisible Threats
Shortly after his appointment as NSA director in 1999, Michael Hayden went to see the film Enemy of the State, in which Will Smith is pursued by an all-seeing, all hearing NSA and former operative Gene Hackman decries the agency’s dangerous power. In Body of Secrets, author Bamford says Hayden found the film entertaining, yet offensive and highly inaccurate. Still, the NSA chief was comforted by “a society that makes its bogeymen secrecy and power. That’s really what the movie’s about.”
 Unlike Hayden, most people don’t know where the fiction ends and NSA reality begins. Supposedly, the agency rarely spies on US citizens at home. On the other hand, the Foreign Intelligence Surveillance Act allows a secret federal court to waive that limitation. The rest of the world doesn’t have that protection. Designating thousands of keywords, names, phrases, and phone numbers, NSA computers can pick them out of millions of messages, passing anything of interest on to analysts. One can only speculate about what happens next.
After 9/11 the plan was to go further with a project code named Tempest. The goal was to capture computer signals such as keystrokes or monitor images through walls or from other buildings, even if the computers weren’t linked to a network. An NSA document, “Compromising Emanations Laboratory Test Requirements, Electromagnetics,” described procedures for capturing the radiation emitted from a computer-through radio waves and the telephone, serial, network, or power cables attached to it.
Other NSA programs have included Oasis, designed to reduce audiovisual images into machine-readable text for easier filtering, and Fluent, which expanded Echelon’s multilingual capabilities. And let’s not forget the government’s Carnivore Internet surveillance program, capable of collecting all communications over any segment of the network being watched.
Put such elements together, combine them with business imperatives and covert foreign policy objectives, then throw PMCS into the mix, and you get a glimpse of the extent to which information can be translated into raw power and secretly used to shape events. Although most pieces of the puzzle remain obscure, enough is visible to justify suspicion, outrage, and a campaign to pull away the curtain on this Wizard of Oz. But fighting a force that is largely invisible and unaccountable – and able to eavesdrop on the most private exchanges, that is a daunting task, perhaps even more difficult than confronting the mechanisms of corporate globalization that it protects and promotes.