Monday, March 3, 2014

Sandy Hook Research – EricsonReport

Sunday, March 2, 2014

Wolfgang Halbig, a former Florida State Trooper with 36 years of experience as a school administrator, is also a nationally recognized authority on school safety and has been threatened for asking questions about Sandy Hook.
Jim Fetzer, a former Marine Corps officer, is McKnight Professor Emeritus at the University of Minnesota Duluth and a journalist and editor for Veterans Today.

Sandy Hook: Free homes and “big bucks” incentives for leaders and players

By Jim Fetzer (with Wolfgang Halbig)

BREAKING NEWS! New Revelations expose the apparently corrupt motives of Newtown authorities and participants in the staged events at Sandy Hook, including free homes and a cut of $27 million (USD) in donations from a sympathetic but gullible public played for saps through the cynical manipulation of their subconscious fears.
Wolfgang
New research on Sandy Hook reveals powerful financial incentives that appear to implicate the highest officials of Newtown in a conspiracy to fabricate the Sandy Hook Elementary School Shooting, which extends to survivors of the “victims” and other participants who played key roles in conveying the impression of a massacre of children at Sandy Hook.
In addition, a new player, Wolfgang Halbig, has emerged who by background, experience and qualifications–as a former Florida State Trooper, former school principal and nationally recognized expert on school safety–has brought a new level of expertise to sorting out the illusion, where he is convinced it was a sham and that no one died at Sandy Hook.
These incentives include real estate transactions, whereby valuable homes were deeded to Newtown’s three Selectmen and to other participants for the sale price of $0 dollars on 25 December 2009, which may be the only real estate transactions on Christmas Day in the nation, where, if the information I discuss below is accurate, they appear to be very special and high-value-at-no-cost “Christmas presents”. The “survivors” have already raked in $27 million in donations to split. And now we have a new report that 200 Connecticut State Police are going to be rewarded for essentially “doing nothing”.
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This information is so extraordinary that, as a journalist for Veterans Today, I have written to Newtown’s Selectmen, Patricia Llorda, William F.L. Rogers and  James Gaston, Sr., to either confirm or deny that they were among the recipients of these extraordinary gifts. I am awaiting their replies. And, for the rest, in their eagerness to cash in on the hoax, they seem to have posted a United Way donation request 3 days early.

Who is Wolfgang Halbig?

A former Florida State Trooper, who spent 36 years as a school administrator (including as assistant principal and principal) and a nationally recognized authority on school safety (who also served as an expert witness in the Columbine shooting case), has an impressive biographical sketch, which I am providing here. He is by far the most highly qualified expert to address the questions raised by the Sandy Hook “event”:
B4INREMOTE-aHR0cDovLzEuYnAuYmxvZ3Nwb3QuY29tLy1iT2dLTzNTN1Y1MC9Vd0U4UFExTEF1SS9BQUFBQUFBQUNNby96QlpDWVJ3UXVQVS9zNjQwL1dvbGYrYmlvK3NrZXRjaC5qcGc=
The exceptional interview by Dave Gahary with Wolfgang Halbig has been posted on the America Free Press YouTube channel, where it has been drawing rave reviews and, as they say, has “gone viral”, perhaps especially because he has been threatened with prosecution for raising questions with Connecticut state officials.  How could anyone of his credentials be threatened simply for asking questions about Sandy Hook?
David Gahary interviews Wolfgang Halbig
     To listen to the interview of Wolfgang Halbig by David Gahary, click

School Safety Expert Threatened for Questioning Sandy Hook

Wolfgang on YouTube here
The fascinating questions that Wolfgang has raised include, “Why were 26 small Christmas Trees behind the Sandy Hook Volunteer Fire Department on 14 December 2012 and decorated on 15 December 2012?”  They do not have, say, 60 or 100 trees because, if they did, then it would have been obvious that they were having a Christmas tree sale. But instead we see that they have just 26 small trees all by themselves. That would seem to suggest that there was a plan to have 26 “victims” whose deaths were to be observed, but before the event to be commemorated had even taken place.
As he wrote of the Sandy Hook Research Group and others, “There are so many of you who have dedicated so much time and effort in seeking the truth which the CT State Police and the Danbury State Attorney refuses to share reminds me of Nazi Germany and East Berlin were many of my family members lived and died. My father spend four years in a Nazi prison camp so I know personally that if you or we ever stop asking questions and stop challenging those in power we the people are no longer free and will no longer be safe.”

Letter to the Newtown Selectmen

It was astonishing to learn that very unusual real estate transactions had taken place on 25 December 2009, where the homes of 15 of the 20 Sandy Hook child victims, 1-2 of the 7 adult victims, and all 6 of the Sandy Hook adult non-victims (the Phelps, Gene Rosen, the three Selectmen) have the mysterious sale date of Christmas Day and $0 sale price. Although not gifted on that same date, even the home of Nancy Lanza, the purported mother of the alleged shooter, Adam Lanza, was bestowed upon her for $0 on 8 February 2011:
Nancy Lanza's home
Altogether, some 35 homes were “gifted” for $0, where the data base for home sales is a matter of public record. These stunning transactions are so extraordinary and potentially explanatory that they are even being featured on YouTube, where I expect that they will now begin to receive the attention they deserve. I decided to write to the three Selectmen of Newtown, all of whom were recipients of this remarkable largess, for their verification. I had originally sent my inquiry to the members of the School Board, but noticed my mistake and corrected it:
From:James Fetzer
Date: Sat, Feb 15, 2014 at 1:17 PM
Subject: The strange purchase date and price of Sandy Hook homes
To:  Patricia Llorda, William F.L. Rogers and  James Gaston, Sr.
Cc: wolfgang halbig
Dear Newtown Selectmen,
This is to forward to you a message intended for you as well as the members of the Newtown School Board, since all of you have an interest in accurate and truthful reporting about Sandy Hook and such events as may have transpired at the elementary school.
I was struck by the recent article in which Selectman Llodra complimented the national press for its “respectful professionalism” in covering the observance of those events.  Since I want to make sure I have my facts straight about a story that involves the three of you, I would appreciate having your comments on the article that I have just forwarded to the members of the School Board.
Thanks for a prompt response.
Jim
James H. Fetzer, Ph.D.
McKnight Professor Emeritus
University of Minnesota Duluth
http://www.d.umn.edu/~jfetzer/
———- Forwarded message ———-
From: James Fetzer
Date: Sat, Feb 15, 2014 at 1:17 PM
Subject: The strange purchase date and price of Sandy Hook homes
To:  Debbie Leidlein, Laura Roche, Keith Alexander, John Vouros, David Freedman, Michelle Embree Ku, Kathy Hamilton
Cc: wolfgang halbig
Dear Newtown School Board Members,
While we are on the subject, I would like to invite your attention to an extremely disturbing article,
“The Strange Purchase Date and Price of Sandy Hook Homes”,  http://www.dcclothesline.com/2014/02/14/strange-purchase-date-price-sandy-hook-homes/
which I hope you can clarify for me because, as a journalist, I want to make sure I have things right. It lists some highly unusual real estate transactions on Christman Day of 2009, including these:
20. E. (Elin) Patricia Llodra, 70:
Llodra is the First Selectman and head of Newtown’s 3-member Board of Selectmen who supervise the administration of the town. Like the other two board members (#21 and #22 below), Llodra was elected to a 2-year term (12/1/2011 to 12/1/2013), which means the three were in charge of Newtown at the time of the Sandy Hook massacre. All three were recently reelected to another 2-year term (12/1/2013 to 12/1/2015).
A year ago, when I looked up Ellin P. Llodra on people search engines, her address was listed as 90 Riverside Rd, Sandy Hook, CT 06482.
VGS a year ago and today says Owner of Record: Robert M. & Ellin P. Llodra Ownership history: Sold to Robert M. & Ellin P. Llodra on 12/25/2009 for $0. Trulia has no price history on this property.
But when I look up Ellin Llodra on people search today, her address is listed as 3 Primrose St., Newtown, CT 06470, which is the address of the Newtown Municipal Center, and is owned by the Town of Newtown, with a sale date of12/25/2009 and a sale price of $0.
21. William Rodgers (2nd member of Newtown’s Board of Selectmen):
      208 Hattertown Rd, Newtown, CT 06470 VGS says Owners: William & Moira Rodgers Ownership history: Sold to William & Moira Rodgers on 12/25/2009 for $0 Trulia’s price history: 4/22/1992 $362,000
22. James Gaston Sr. (3rd member of Newtown’s Board of Selectmen):
      18 Main St., Newtown, CT 06470 VGS says Owner: Stephanie A. Gaston Ownership history: Sold to Stephanie A. Gaston on 12/25/2009 for $0 Trulia’s price history: 10/2/1992 $262,500
Frankly, I have never heard of anyone completing a real estate transaction on Christmas Day. The author summarizes his conclusions about these very strange transactions as follows:
“The homes of 15 of the 20 Sandy Hook child victims, 1-2 of the 7 adult victims, and all 6 of the Sandy Hook adult non-victims (the Phelps, Gene Rosen, the three Selectmen) have the mysterious sale date and $0 sale price.
“At the very least, that is interesting. The three Selectmen are especially interesting because if the hypothesis is that the massacre was a contrived event, then Newtown’s highest governing body would have to be “in the know.”
“Your guess is as good as mine as to what all those strange 12/25/2009 sale dates and $0 sale price mean. I’d appreciate input from readers of this blog who are in the real estate business and can shed some light of what the odd sale date and sale price mean.”
Since I am providing you with a link to this stunning article, whose contents you can confirm for yourselves, I would like to know if its author has anything wrong; and if his research is accurate, what in the world is going on?  Homes in your area are extremely expensive. Why were you, the three selectmen, for example, deeded homes for $0 on 25 December 2009?  Please do explain.
I will be publishing more articles about this and I want to make sure that I have my facts straight.
Thanks for a prompt response.
Jim
James H. Fetzer, Ph.D.
McKnight Professor Emeritus
University of Minnesota Duluth
http://www.d.umn.edu/~jfetzer/
P.S. An interview with Wolfgang Halbig is now up on YouTube. You don’t want to miss it:
http://www.youtube.com/watch?v=6roDPt1WYYY&list=UUseEm_OTxRSzs8L_FTFP8Dg
Newtown official thanks media for covering Sandy Hook

Letter to the Newtown School Board

Learning that all three of the Newtown Selectmen, including Patricia Llodra, had received homes for $0 dollars may shed light on the whole bizarre Sandy Hook experience, where in retrospect it looks as though Llordra’s expression of appreciation to the main stream media for their “respectful professionalism” in covering the observance was really an expression of appreciation for covering up what had actually happened. When Wolfgang wrote to the School Board, therefore, I sent my own follow up:
On Fri, Feb 14, 2014 at 9:23 AM, James Fetzer <<a href=”mailto:jfetzer@d.umn.edu” target=”_blank”>jfetzer@d.umn.edu wrote:
Dear Newtown School Board Members,
As a former Marine Corps officer, retired university professor and especially as a journalist for Veterans Today, who has published several articles about the Sandy Hook event, I would like to have your response to what Wolfgang Halbig has addressed to you. Wolf is a former Florida State Trooper, a former school principal and a nationally recognized expert on school safety.  Are you going to respond to his inquiries or will you pretend you never received them?
There are multiple indications that you, the Newtown School Board, have been participating in a cover up of what took place at Sandy Hook Elementary School.  As we have observed in
“Top Ten Reasons: Sandy Hook was an Elaborate Hoax” (with Vivian Lee, Sofia Smallstorm, James Tracy and other members of the Sandy Hook Research Group), the evidence is simply overwhelming that what happened was a carefully staged drill and not an actual shooting.
The questions that Wolfgang has raised are important ones, especially about the event itself but also about the building, which have been reported in articles that have appeared in the press, including “Widespread Haz-Mat Presence Would Have Hampered Sandy Hook Renovations” by John Voket (2 December 2013), which appeared in The Newtown Bee. And of course First Selectman Pat Llorda has been quoted thanking the press for its coverage of the Newtown event.
The questions that Wolfgang has raised about Sandy Hook Elementary School are obvious and elementary. As a journalist who has published and will continue to publish about this event, I want to be sure that I have my facts straight. So be sure to include me in your response to Wolfgang. And if you were not participating in a massive hoax to mislead the American people, inquiring minds want to know.
Thanks for a prompt response.
Jim
James H. Fetzer, Ph.D.
McKnight Professor Emeritus
University of Minnesota Duluth
http://www.d.umn.edu/~jfetzer/
From: Wolfgang Halbig
Date: Fri, 14 Feb 2014 07:38:20 -0500
To: Debbie Leidlein, Laura Roche, Keith Alexander, John Vouros, David Freedman, Michelle Embree Ku, Kathy Hamilton
Subject: Follow the CT Laws on the Ct Freedom of Information Act and please return phone calls
School Board Chairman and Board Members:
I have spend a lifetime as a Florida State Trooper In Miami, Florida from 1974 through 1977 and then realizing that I’m in the wrong profession.
When you work as a Law Enforcement Officer in Miami, Florida it seems as a lifetime even if it is only 3 years or less.
I was putting people in Jail instead of trying to prevent them from going to jail.
So I became a School Administrator for 36 school years.
I became a National School Safety Consultant after retiring form Education in 1999.
I was appointed by former Gov. Jeb Bush to the Florida Safe Schools Commission and confirmed by the Florida Senate.
I am asking you the Board Members to help me in getting your school superintendent to repsond to my Ct Freedom of Information Requests in a timely manner.
Your Facility Director does not even return phone calls after leaving a polite message.
My requests are simple requests and will not place your school district in any danger whatsoever.
I was an Expert witness in the Columbine shooting in 1999 and it causes me to ask the same questions.
I was in the Media Center three days after the shooting and I personally observed the horrific crime scene and I got to see it after they renovated the Media Center for School use again.
The incident at Sandy Hook Elementary School has caused nothing but panic and fear throughout all schools in our country and I believe you have a responsibility as Board Members to tell the truth as to:
Why were NO trauma Helicopters requested that morning when lives could have been saved?
Why No paramedics or EMT’S were allowed into the school building instead they were told to set up Triage?
Who declared all 24 school children and school staff legally dead within the first 11 minutes since only a Doctor can do that not a police officer per CT State Laws?
Two children supposedly died at the hospital which it took over an hour to transport. Why?
Who did the school board contract to remove all Bio-Hazards from the Sandy Hook Elementary School such as 45 to 65 gallons of blood, brain tissues and skull fragments, blood splatter, blood carpet removal etc just as they did at Columbine?
Who was the contractor who installed the security system at sandy Hook Elementary school and the total cost of the project?
Copies of the tri-annual Asbestos inspections that must be conducted by a Certified Inspector from outside the school system and that all parents must be notified of any asbestos, lead or any other dangerous substances that could cause harm to children and school staff on an annual basis.
I have requested those reports from 2002 through current year 2012.  Now what is so difficult in providing me with those reports since parents of Sandy Hook should see those every school year?
Please comply.
I am asking you as a former educator and National School Safety Consultant to respond to my Ct Freedom of Information Act requests and return phone calls in a timely manner. You have had Dr. Ron Stephens National School Safety Center speak with you and he will give me a great reference if you check me out.
I will not stop asking as you will see until board members have the courage in sharing the truth.
How can a Lt. from the Newtown Police Department working an off-duty detail on Dec 14, 2012 and hearing that shots are fired at Sandy Hook Elementary School not leave his off duty job to repsond in saving children and school staff lives?  He decided to stay until over two and a half hours passed to respond.
How can you [have] allowed that type of response from police in your community.  He should be fired and not praised in your meetings?
Please have your school district respond to my requests.
Thanks.
Wolfgang W Halbig
352-729-2559
25526 Hawks Run Lane
Sorrento, Florida 32776
Sandy Hook School beyond rennovating

Wolfgang’s questions for The Newtown Bee

His letter to The Newtown Bee was so completely appropriate and reasonable that it seemed to me a bit more heat was deserved in this case, so I wrote a sequel in which I raised questions about an event as embarrassing relative to Sandy Hook as Jane Standley’s report of the “collapse” of WTC-7, which was broadcast 27 minutes early.  So I asked about its very strange report of a phone call from the principal, Dawn Hochsprung, about the shooting, when she was said to be the first victim:
From: James Fetzer
Date: Sat, Feb 14, 2014 at 9:00 AM
Subject: About Wolfgang Halbig’s inquiries to The Newtown Bee
To: editor@thebee.com, shannon@thebee.com, john@thebee.com, nancy@thebee.com,
andy@thebee.com, eliza@thebee.com, kendra@thebee.com
Cc: wolfgang halbig
Dear Bee Editors and Staff,
As a former Marine Corps officer, retired university professor and especially as a journalist for Veterans Today, who has published several articles about the Sandy Hook event, I would like to have your response to what Wolfgang Halbig has addressed to you. Wolf is a former Florida State Trooper, a former school principal and a nationally recognized expert on school safety.  Are you going to respond to his inquiries or pretend you never received them?
There are multiple indications that you, The Newtown Bee, have been participating in a cover up of what took place at Sandy Hook Elementary School.  As we have observed in “Top Ten Reasons: Sandy Hook was an Elaborate Hoax” (with Vivian Lee, Sofia Smallstorm, James Tracy and other members of the Sandy Hook Research Group), you even published an interview with Dawn Hochsprung after she was officially dead:
Dawn Hochsprung—In an embarrassing fiction, The Newtown Bee reported on 14 December 2013  that Dawn Hochsprung, the Sandy Hook school principal, told the paper that a masked man had entered the school with a rifle and started shooting multiple shots – more than she could count – that went “on and on.” Of course, Dawn Hochsprung was allegedly killed by Adam Lanza and so could not easily have provided this statement. In fact, Dawn was said to have acted heroically, dying while lunging at the gunman—although one wonders who witnessed and reported this act of heroism. On 17 December 2013, The Bee retracted the report and apologized:
An early online report from the scene at the December 14 shootings at Sandy Hook Elementary School quoted a woman who identified herself to our reporter as the principal of the school. The woman was not the school’s principal, Dawn Hochsprung, who was killed in the Friday morning attack. The quote was removed from subsequent online versions of the story, but the original story did remain in our online archive for three days before being deleted. We apologize for whatever confusion this may have caused our readers and for any pain or anguish it may have caused the Hochsprung family.
But how in the world could something like that have happened unless someone went off the script?  Why in the world would anyone PRETEND TO BE THE PRINCIPAL OF AN ELEMENTARY SCHOOL AND CALL IN TO REPORT A SHOOTING? Surely you can see that your flimsy attempt to explain away an embarrassing gaff by The Newton Bee isn’t going to persuade anyone that you are not complicit in this massive deception and hoax?  So be sure to include me in your response to Wolfgang, because I want to have my facts straight. And if you were not participating in a massive hoax to mislead the American people, inquiring minds want to know.
Thanks for a prompt response.
Jim
James H. Fetzer, Ph.D.
McKnight Professor Emeritus
University of Minnesota Duluth
http://www.d.umn.edu/~jfetzer/
On Fri, Feb 14, 2014 at 7:43 AM, Wolfgang Halbig <<a href=”mailto:wolfgang.halbig@comcast.net” target=”_blank”>wolfgang.halbig@comcast.net> wrote:

Editor and reporters and Hicks:How can you as a staff sit back in your offices and allow this to happen under your watch?
Your failure in placing every parent on notice before the Sandy Hook School Shooting about the serious high level of lead, asbestos and PCB’s in that school since it was built in 1956 should have been a warning sign long before they decided to tear it down.
Why did your News Paper not warn every parent and school board members of the serious exposures that every child and school staff member is confronted with on a daily basis and NO one warned the parents or school staff?
As you know by CT State  and even Federal laws the Sandy Hook Elementary School is required to have a tri-annual Asbestos inspection by an outside certified asbestos inspector.
Those findings must be reported to parents of the children and school staff of Sandy Hook on an annual basis.
The school district must write a letter to very parent informing them of the high level of lead, Asbestos such as asbestos ceiling tiles, asbestos floor tiles and just as you finally reported before tearing down the school of how bad those Asbestos and Haz-Mat conditions where.
Children and school staff are working in classroom with high amounts of lead paint. Have you ever heard of allergies?
You call this a Vanguard School knowing that every child and school staff member who attended was being exposed to high levels of lead, serious Asbestos violations and many other Has-mat conditions such as PCB’s.
Why would any Elementary School parent allow their child to attend that school unless all those conditions were remediated long time ago?
These are serious conditions that a school district ignored and you must have known or maybe just an oversight in letting parents know of how bad those environmental conditions in that school where.
Did the school district on an annual basis write letters to every parent in informing them of these serious Haz-Mat and Asbestos conditions? You should find out because it is the law.
 
Wolfgang
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So what was Sandy Hook about?

Are the Newtown Selectmen going to move to make real estate records immune from public disclosure, just as the Newtown Clerk moved to keep children’s death certificates out of the public domain? Just how dumb are we supposed to be? As I explained in an earlier article, “Fusion and Fear in America: The Non-Existent Domestic Terrorist Threat”, on the basis of an extensive study by a subcommittee of the Senate Committee on Homeland Security and Governmental Affairs, there appears to be no domestic terrorist threat, which may account for why we are subjected to contrived events, such as Sandy Hook and the Boston bombing:
“Despite reviewing 13 months’ worth of reporting originating from fusion centers from April 1, 2009 to April 30, 2010, the Subcommittee investigation could identify no reporting which uncovered a terrorist threat, nor could it identify a contribution such fusion center reporting made to disrupt an active terrorist plot.”–US Senate Committee on Homeland Security and Governmental Affairs.
While this finding appears to be of the greatest importance to the American public, to the best of my knowledge, the mass media has ignored it completely. We know about the 300 or more FEMA camps distributed around the country. We know that Congress has authorized 30,000 drones to conduct surveillance on the American people. We know that the Department of Homeland Security (DHS) had requisitioned 1.5 billion rounds of .40 calibre hollow-point ammunition, which is not permissible for use in warfare under the Geneva Conventions. And we know that Hitler, like Obama, promoted gun control in the name of “public safety”.
Since DHS does not conduct operations abroad, it must be acquiring that massive stock of ammo for use on us right here in the United States.  That much is alarming enough all by itself. What we didn’t know is that DHS is some kind of monstrous joke, that it has been squandering billions of taxpayers’ dollars, and that it has turned up no evidence of any domestic terrorist threat!  NONE!  The situation is absurd.  DHS has no financial oversight and cannot even identify how much it has spent, where there is more than $1 billion difference in its own estimates. So what precisely are we getting for our money?
Perhaps the biggest obstacle to the public’s acceptance of Sandy Hook fakery, in spite of a mountain of evidence that proves it, has been the question of motivation:  What could possibly have induced so many to have lied so much about a matter of such immense significance, which has been parlayed into greater restrictions on gun control and new “mental health criteria” that entitle your physician to ask you about gun ownership?  The answer, alas, should be obvious to everyone: free homes and free money from playing the American people for suckers.  Don’t say no one ever told you, because I just did.
YouTube – Veterans Today -
Wolfgang Halbig, a former Florida State Trooper with 36 years of experience as a school administrator, is also a nationally recognized authority on school safety and has been threatened for asking questions about Sandy Hook.
Jim Fetzer, a former Marine Corps officer, is McKnight Professor Emeritus at the University of Minnesota Duluth and a journalist and editor for Veterans Today.

Vivian Lee, Ph.D., is a Sandy Hook researcher and professor at an East Coast University. Sofia Smallstorm is an independent researcher, who produced and directed “Unraveling Sandy Hook.” James Tracy, Ph.D., maintains a web site at memoryholeblog.com. And Jim Fetzer, Ph.D., a former Marine Corps officer, is McKnight Professor Emeritus at the University of Minnesota Duluth.

Top Ten Reasons: Sandy Hook was an Elaborate Hoax

by Vivian Lee, Sofia Smallstorm, James Tracy, Jim Fetzer and the Sandy Hook Research Group


“[T]he names and ‘contextually identifying information of involved children’ were withheld, including descriptions of the children, their clothing and their belongings”–Reuben F. Bradford, Commissioner, Department of Emergency Services and Public Protection
Everyone must check in
The New York Times, our nation’s newspaper of record (which records the “official history” of the United States), has reported that, with its “final report,” the criminal investigation of Sandy Hook by the State of Connecticut is over. 
Remarkably, the report does not even include the names, the ages or the sex of the alleged victims of the shooting. There is no actual identification of any of the dead. Even the Danbury, CT, Newstimes found it unsatisfying.
And the 52 “autopsy photos” that accompany the report are redacted. The New York Times itself now appears to be responsible for a stunning display of journalistic incompetence on a matter of enormous public concern. 
Anyone with the inclination can comb through hundreds of years of American crime reports and (I would bet) you will not find another instance in the which the names, the ages or the sex of the victims is not given–with the exception of victims of sex crimes.  Withholding this information is part of a pattern of deception and deceit that extends to the Clerk of Newtown making secret arrangements with the state legislature to avoid releasing death certificates to the public, attempts to withhold the 911 calls and gag orders that were imposed upon those responsible for tearing down the building itself:
In a letter accompanying the report, Reuben F. Bradford, the commissioner of the state’s Department of Emergency Services and Public Protection, said the names and “contextually identifying information of involved children” were withheld, including descriptions of the children, their clothing and their belongings. “All visual images depicting the deceased have been withheld,” he added, “as well as written descriptions whose disclosure would be highly offensive to a reasonable person and would violate the constitutional rights of the families.”
The commissioner said that balancing the “often competing interests of government transparency and individual privacy has been difficult,” but the situation is completely absurd.  This appears to be only the latest in a series of obscene measures being adopted to conceal from the public that the Sandy Hook “massacre” was in fact an elaborately staged hoax, which no one who takes a serious look at the evidence can reasonably deny because, in view of what we have now proven about the event, no alternative explanation is reasonable.
The basic principle that applies here is inference to the best explanation. Consider the totality of the evidence in this case.  Is the evidence more probable on the hypothesis that Sandy Hook was a real event or that it was instead an exercise (or a “drill”), which was presented as though it had been a real event?  The hypothesis that confers the highest probability on the evidence is the preferable, which, when the evidence has “settled down,” is acceptable as true in the tentative and fallible fashion of science. Here are the “top ten” reasons that support the conclusion that Sandy Hook was staged and not real, where no children or adults appear to have died there.

1. Proof of death has been suppressed


Untitled
Twenty-eight people allegedly died: 27 children and adults, including Adam Lanza, at the school, and his mother, Nancy Lanza, in her home at 36 Yogananda Street, Newtown. However, there is no direct proof of their death: no photographic evidence or video footage was released to confirm the official story that these 28 persons actually died. In fact, no video surveillance footage shows anything—not even Adam shooting out the front plate-glass window or walking through the halls like Rambo, even though this is a school that had updated its security system at the start of the 2012-13 academic year.
The best the authorities could come up with was a heavily redacted report that includes numerous photos of the inside of the school, with a few dings that look like bullet holes, several bullets on the floor, and many black images with white numbers, which we are supposed to associate with dead people. One photo (left) shows the blown-out glass window through which Adam Lanza presumably entered the premises. But how did he get past the furniture, with all his weaponry, without moving anything out of position?
Compounding the situation, the parents were not even allowed to view their children’s bodies to identify them. Instead, they were reportedly shown photographs of the deceased. This was done, according to the Medical Examiner, Wayne Carver, in order to “control the situation.” But what was there about the situation that required “control”? No parent of our acquaintance would have agreed to accept the death of a child without viewing the body. James Tracy has published a discussion of the medical examiner’s performance.  According to Carver:
Uh, we did not bring the bodies and the families into contact. We took pictures of them, uhm, of their facial features. We have, uh, uh—it’s easier on the families when you do that. Un, there is, uh, a time and place for the up close and personal in the grieving process, but to accomplish this we thought it would be best to do it this way and, uh, you can sort of, uh … You can control a situation depending on the photographer, and I have very good photographers. Uh, but uh—
Remarkably, the state has done its best to avoid releasing the death certificates and even recordings of the 911 calls. Death certificates were eventually “released” but not to the public or those who might want to investigate the case further, where only a short, general summary was available. According to The New York Times, in relation to the 911 calls, “no children are identified by name, no callers indicate that they can see a child being shot, and the only injury described is that of an educator’s being shot in the foot.”
Moreover, the funerals were all “closed casket,” with one exception—that of Noah Pozner. As recounted in interviews with the families, the circumstances of their last encounters with their children (or with their caskets) are strange to say the least. The “love fest” at the white coffin of Grace McDonnell was detailed on CNN for Anderson Cooper:
Veronique Pozner gave her account of her last look at her son Noah to the Jewish Daily Forward on 26 December 2013.
Veronique asked the medical examiners not to autopsy her son; she felt that his body had suffered too many indignities. At his funeral, Noah was dressed in a suit and tie. A Jewish friend of Veronique’s at work enjoined Rabbi Praver to allow him to be wrapped in a blue tallis, even though he had not yet had a bar mitzvah.

The family placed stuffed animals, a blanket and letters to Noah into the casket. Lastly, Veronique put a clear plastic rock with a white angel inside — an “angel stone” — in his right hand. She asked the funeral director to place an identical one in his left, which was badly mangled.
Just before the ceremony, Connecticut Governor Dannel Malloy came to the funeral home to pay his respects. Veronique took him by the arm and brought him to the casket. Noah’s famously long eyelashes — which she spoke about in her eulogy — rested lightly on his cheeks and a cloth covered the place where the lower half of his face had been. “I just needed it to be real for [the governor],” she says. “This was a live, warm, energetic little boy whose life was snuffed out in a fraction of a second because our schools are so defenseless.”

2. Emergency protocols were not followed


There is no evidence of any frantic effort to save lives or to remove bodies to hospitals; instead the scene outside the school looked calm and largely bloodless—with police and other personnel milling around casually and a severe shortage of dead or injured victims. One Sandy Hook researcher decided to call Lt. Paul Vance to ask who cleaned up the blood, which would have been considered to be a bio-hazard, and got the reply, “What blood?” Here is Jim Fetzer’s interview with Kelley from Tulsa on “The Real Deal” where she discusses this, which also includes several of the 911 calls:


Kelley was onto a real issue. Under the CT Medical Waste Tracking Act of 1988, a paper trail must kept by all parties involved in the clean up and must be tracked all the way to the incinerator with names and dates.
In a Mass Casualty Incident (MCI) like Sandy Hook, the proper protocol is START triage (Simple Triage and Rapid Treatment) using tarps of different colors with the aim being to save lives and get the injured to the hospital for treatment.  Not even the black tarps for the dead were used, much less the red ones for those who needed immediate treatment.  As Sofia Smallstorm has documented, nothing at all like this occurred at Sandy Hook: the appropriate protocols were not followed:
Sandy Hook Fire Chief Bill Halstead was ready to help the victims but could recall only two wounded people. A few survivors were reportedly taken to the hospital, but, oddly, these people were never interviewed. There were no first-hand accounts that proved anyone was killed or injured. Nonetheless, according to Lt. Vance, 18 children were pronounced dead at the scene, two children were removed to “an area hospital” and were pronounced dead at the hospital, and seven adults were pronounced dead at the scene, including the shooter (NBC).
No emergency vehicles were present at the school or even lined up in the fire lane for a rescue attempt—the parking lot was filled with parked cars, police cars and possibly media vehicles. Such rescue activity as occurred was centered, not on the school premises, but at the nearby Firehouse. Emergency vehicles at the Firehouse were jammed together impeding access to the school, in case anyone might have thought about attempting a rescue. The scene at the Firehouse was quite peculiar, with people milling around and circling through the building, walking out one door and into another, to give the impression of lots of people and lots of action. But it was all in accordance with FEMA manuals for drills.

3. Drill protocols were followed instead


We are now living in a security state, and the school system is among its beneficiaries. While we used to have “fire drills” from time to time, we now have “lockdown drills” implemented by school districts, with some states requiring a set number of drills by law. Private security firms, which operate for profit, now conduct “crisis preparedness assessments” at the tax-payer’s expense.
Larger scenarios are also developed as active-shooter drills, in which local law enforcement can take part in storming a school in pursuit of an active-actor-shooter. One such plan available on the web is “Operation Closed Campus” developed in Iowa following guidance set forth by the Homeland Security Exercise and Evaluation Program (HSEEP) of the US Department of Homeland Security.
According to protocol, everyone at the drill must check in, identification badges are issued to personnel and observers, and drinking water and restrooms are available. Personnel include the director, staff, controllers, evaluators, actors, media personnel and “players” (agency employees) both in uniforms and civilian clothes. This protocol appears to have been followed at Sandy Hook, where many participants wore ID/identification badges on lanyards, a huge check-in sign is visible and even Porta Potties are at the ready.
An emergency preparedness drill took place on 14 December 2012, 9 AM to 4 PM/ET, in Bridgeport, CT, which is a 20 minute drive from Sandy Hook. The course was run by the Connecticut Department of Emergency Services and Public Protection/Emergency Management and Homeland Security, entitled “Planning for the Needs of Children in Disasters.”
The Sandy Hook “shooting” appears to have been an Integrated Capstone Event (ICE), an exercise run by FEMA to coordinate federal, state and local emergency response teams in the case of a mass-casualty event. As such, it would have utilized actors and media partners to simulate a tragedy in order to train participants, and also in order to observe the reaction of the citizenry.

4. There was foreknowledge of the event


The Connecticut state emergency system was taken over long before the “massacre” occurred, with a frequency change implemented five hours in advance of the “shooting.” Normal police and EMS dispatch protocol, using the Alpha Phonetic System for communications between officers and dispatchers, was replaced with staged transmissions by non-trained personnel. 
In addition, tweets about the shooting began before it occurred, a tribute was apparently uploaded one month before the event, and web pages honoring the victims, including a Facebook page R.I.P. Victoria Soto, were established before they had “officially” died. 
A Sandy Hook timeline has been reconstructed at memoryholeblog.com, detailing major developments and highlighting the numerous inconsistencies in reports by the media.

5. There were contradictory reports about the weapons


According to initial reports in the media, weapons used in the shooting included four handguns recovered at the scene, the only guns taken into the school (NBC). Then an AR-15 was said to have been found in the trunk of Lanza’s car (NBC). Then it was reported that Lanza may have carried only two handguns and that a rifle was also found in the school (NBC).
Dr. Carver's bizarre presss conference
Wayne Carver, the Medical Examiner, said that all the victims were shot with the “long weapon.” Lt. Paul Vance then said that a Bushmaster AR-15 assault weapon with high capacity magazines was used “most of the time” and that Lanza was carrying “many high-capacity clips” for the weapon (Huffington Post).
In January 2013, Connecticut state police released a statement indicating that they had found four guns inside the school: a Bushmaster .223 caliber XM 15-E2S semi-automatic rifle with high capacity 30 round clips, a Glock 10-mm handgun and a Sig-Sauer P226 9mm handgun. They said they also found an Izhmash Canta-12 12-gauge shotgun in Lanza’s car (NBC).
This shotgun is also shown in a video aired on the night of 14 December 2013  by NBC. An evidence collection team and a policeman find the gun in the trunk of Lanza’s Honda Civic—the policeman handles the gun without gloves and ejects the ammunition on the spot. Some have seen two long guns in the trunk in the NBC video: the 12-gauge shotgun and the Bushmaster rifle.
Lt. Vance then asserted that Lanza had killed all his victims with the .223-caliber semi-automatic rifle (ctpost.com). Regarding the confusion, Vance told reporters, “It’s all these conspiracy theorists that are trying to mucky up the waters.” Perhaps “The Top Prize for Fantastical Reporting” goes to Fox News, however, which announced that a 12-gauge shotgun along with two magazines containing 70 rounds of Winchester 12-gauge shotgun rounds had been found in the glove compartment of Adam Lanza’s Honda Civicthat’s right, in the glove compartment.

6. Adam Lanza cannot have done the shooting


Adam Lanza, reportedly a frail young man weighing 120 pounds with Asperger’s Syndrome, is said to have carried massive weaponry on his person when he shot his way into the Sandy Hook school and proceeded to kill 26 people and then himself. This after he supposedly killed his mother before driving to the school.
Adam Lanza
According to State’s Attorney Stephen Sedensky, Lanza killed his 26 victims with the Bushmaster .223-caliber rifle and then killed himself with his Glock 10-mm handgun. Lanza was also supposedly carrying three 30-round magazines for the Bushmaster as well as a Sig-Sauer 9 mm handgun (see above). The victims were shot multiple times each in a fusillade of bullets from these military-style weapons. In order to wreak this havoc, he fired more than 150 rounds, and he must have carried more rounds in addition. Lanza was reportedly found dead wearing a bulletproof vest and military-style clothing (AP).
As Mike Powers, a professional military investigator and ballistics expert, has observed, this young man of slight build could not have carried all these heavy, bulky weapons and ammunition on his person. Furthermore, since first responders were supposedly inside the school within seven minutes, there was not enough time for Lanza to have carried out the shooting as reported. In an interview with Joyce Riley, Powers states that Lanza could not have fired so many times continuously without destabilizing himself from the intense noise from the Bushmaster. As a novice, he could not have shot an AR-15 with such speed and accuracy, supposedly changing magazines 4-5 times without a stoppage.
According to Lt. Vance on the night of the shooting, one victim survived. So in less than seven minutes—or less than five minutes according to the media—Lanza killed 26 people and then himself, producing only one injured victim. This is a 96% kill ratio, which is unheard-of accuracy among the most experienced marksmen. Powers thinks the whole scenario is a physical impossibility. He is not even convinced that Adam Lanza was a real person. The story of the shooting should not be taken seriously.
The final travesty involves the weapons and other paraphernalia that were allegedly found in the Lanza house. The “arsenal” supposedly included guns, Samurai swords, knives, a bayonet and more than 1,000 rounds of ammunition, according to search warrants released. Other items of interest were ear and eye protection, binoculars, holsters, manuals, paper targets, a military-style uniform and Lanza’s NRA certificate (Fox). Lanza had reportedly compiled a spreadsheet 7 feet long and 4 feet wide in 9-point type detailing 500 victims of other mass murders (CBS). We are supposed to believe this, and, at the same time, that Adam Lanza was a shy, quiet kid who didn’t like noise and chaos, as promoted by the PBS Frontline Special, “Raising Adam Lanza.”

7. Key participants displayed inappropriate behavior


There are many bizarre media reports and interviews of those associated with the “shooting.” Some examples:

Wayne Carver—Medical Examiner Wayne Carver’s surreal press conference is one of the most startling of all the media offerings. Widely available on youtube, this event shows H. Wayne Carver II, a public official of some standing, clowning and acting outlandish—grinning strangely, making irrelevant comments, and basically appearing unknowledgeable and unprofessional.
Robbie Parker—Perhaps the most famous press conference is that of Robbie Parker, the alleged father of victim Emilie Parker, speaking on a CNN report of December 15, 2012. He chuckles as he walks up to the camera, then gets into character by hyperventilating, and finally feigns distress as he talks about his daughter—and about the fund set up to help raise money “for Emilie.”
The families—In addition to Robbie and Alissa Parker, other parents and family members take their turn in the spotlight, including (but not limited to) Mark and Jackie Barden, Jimmy Greene and Nelba Marquez-Greene, Ian and Nicole Hockley, Neil Heslin (alleged father of Jesse Lewis), Chris and Lynn McDonnell, Veronique Pozner, Carlee Soto, and David and Francine Wheeler. Anderson Cooper is the interviewer in two notable instances: his conversation with the McDonnells mentioned above, and an interview with Veronique Pozner, remarkable for its green-screen effects such as Anderson’s disappearing nose.
The school nurse—Numerous reports offer detailed and totally fictitious information, some of which was later abandoned in favor of more tenable versions. On the evening of December 14, a USA Today reporter said she had spoken with the school nurse, whom she had met on the street. The nurse told her that the gunman had come into her office, “they met eyes, she jumped under her desk,” and he walked out.  The nurse said that the gunman was the son of the kindergarten teacher, who was known to her and “an absolutely loving person.” It later developed that Nancy Lanza had not been a kindergarten teacher at all, and that neither Nancy nor Adam had any connection to Sandy Hook school whatsoever.
Dawn Hochsprung—In an embarrassing fiction, The Newtown Bee reported on 14 December 2013  that Dawn Hochsprung, the Sandy Hook school principal, told the paper that a masked man had entered the school with a rifle and started shooting multiple shots – more than she could count – that went “on and on.” Of course, Dawn Hochsprung was allegedly killed by Adam Lanza and so could not easily have provided this statement. In fact, Dawn was said to have acted heroically, dying while lunging at the gunman—although one wonders who witnessed and reported this act of heroism. On 17 December 2013, The Bee retracted the report and apologized:
An early online report from the scene at the December 14 shootings at Sandy Hook Elementary School quoted a woman who identified herself to our reporter as the principal of the school. The woman was not the school’s principal, Dawn Hochsprung, who was killed in the Friday morning attack. The quote was removed from subsequent online versions of the story, but the original story did remain in our online archive for three days before being deleted. We apologize for whatever confusion this may have caused our readers and for any pain or anguish it may have caused the Hochsprung family.
Gene Rosen—Gene Rosen is one of the most prolific of the Sandy Hook media stars, giving animated and conflicting statements to a series of reporters (in English and Spanish). Considered a “good Samaritan” by the mainstream media, Gene supposedly harbored six children who ran away from the school, rode to his house on a school bus, sat down on his lawn and proceeded to cry and tell him that their teacher, Miss Soto, was dead. Strangely, Rosen took the children inside and gave them some toys to play with, instead of calling 911 like any normal person.
The Gene Rosen videos are important for the official narrative, in that they corroborate many of its details: the staccato gunfire (and thus a semi-automatic weapon) and heresay evidence from the children (Lanza had a big gun and a little gun, Vicki Soto was killed, etc.).These incriminating videos are some of the best evidence that the Sandy Hook shooting was a hoax.

8. Photos at scene and of victims look staged or fake


The only photo we have seen of any children being evacuated from the school was apparently taken earlier in the fall during a drill (no coats, smiling faces). Shannon Hicks, a photographer for The Newtown Bee, took the photo and claims to have taken many others of the event—which have not been released.
Shannon Hicks
Hicks reportedly took this photo “as an associate editor” and then, when another editor arrived, “changed into her firefighting gear and tried to help.” The account was promoted by NPR.
Parker family
Perhaps more insidious are the photographs of the children who allegedly died at Sandy Hook, many of which are concoctions prepared on Photoshop. Some of the most problematic involve the Parker family, with Emilie’s red-and-black dress supposedly worn by her younger sister for the visit with Obama.
The photograph of Victoria Soto’s class of students has been shown to be an elaborate composite:
And many of the individual images of the children released to the media are peculiar—some look outdated and may be old photos.  In a very sloppy slip-up, a photo of a real child, Lily Gaubert (right, below), who is alive and well, was promoted in the media as an image of Allison Wyatt (left, below), an alleged victim. Lily’s mother discovered the error and made it public.
Allison Wyatt vs. Lily Gaubert
And the ridiculously fraudulent photographs of Adam Lanza clearly do not depict a real person:

9. The crime scene was completely destroyed


As with Ground Zero after 9/11, Sandy Hook Elementary and all the evidence have been completely obliterated; $50 million in CT state funds were allocated for the demolition and rebuilding of Sandy Hook school. This would never have been tolerated if an actual crime had been committed—at least one that was meant to be investigated. The demolition of the school has now been declared complete.
Sandy Hook demolition
Employees who worked on the project were required to sign non-disclosure agreements. They were not only prohibited from removing anything from the site, but they were forbidden from discussing publicly anything they may have observed or not observed during the demolition, such as an absence of bullet marks on the walls or blood on the floor of the classrooms.

10. Deceased children sang at the Super Bowl


Recent research has resulted in a “Sandy Hoax Surprise,” a convincing youtube video identifying eight alleged Sandy Hook victims and six of their brothers singing in the Newtown children’s choir at the 2013 Super Bowl.
One more victim has been identified since the original video, making a total of 15 out of the 21 children in the choir who were from the Sandy Hook “families.” The newly recognized “victims” are all older than they appear in their photos, giving credence to the theory that the children’s photographs were outdated images.
The Newtown children, whoever they are, seem quite happy to be singing at the Super Bowl, smiling and running across the field after the event—giving no sign of the trauma they had been through less than two months prior. So are these children actually alive? One can only hope. 

Cui bono?


The evidence demonstrates (1) that proof of death has been suppressed, (2) that emergency protocols were not followed, (3) that drill protocols were followed, (4) that there was foreknowledge of the event, (5) that there was confusion over what weapons were used, (6) that the suspect cannot possibly have carried out the shooting as claimed, (7) that strange behavior was displayed by officials, witnesses and relatives, (8) that there are many odd photos of participants, (9) that the crime scene was destroyed under conditions of secrecy and (10) that some of the children appeared at the Super Bowl.
With the possible exception of (5) and (9), all of these features would have low probabilities had Sandy Hook been a massacre but high probabilities were it merely a drill.  Some of them are decisive by themselves, such as (1), (2), (3), (4) and (6)–not to mention (10).  EMTs cannot make determinations of whether a victim is dead or alive, so there should have been a surge of EMTs into the building to rush those little bodies off to hospitals where doctors could determine their condition.  But that was not done–and nothing else about this event supports the conclusion that it was real. On the contrary, virtually everything indicates that this was a drill.
Going in circles
The probability of the evidence on the hypothesis that this was a drill is overwhelmingly greater than on the hypothesis that it was an actual massacre. And the evidence appears to have “settled down” and point in the same direction. No alternative is reasonable, which means it has been proven beyond a reasonable doubt. So who did it and why? This is the final question. If the perpetrator had been Adam Lanza, then he had no apparent motive, as even “the final report” acknowledged.  When considering cui bono (who benefits), a large amount of money is at stake–and much of it has already been distributed.
Follow the Money
First of all, the construction industry got a boost, with the $50 million in Connecticut state funds allocated for the destruction of Sandy Hook School and to rebuild a new school on the premises. And this from a state with a projected budget deficit of $1.1 billion for the coming year.
The Sandy Hook School Support Fund has raised approximately $12 million and distributed it to the Newtown-Sandy Hook Community Foundation, overseen by Ken Feinberg, “a victim compensation master with a national reputation,” according to United Way Western Connecticut. And the Support Fund posted its condolences on 11 December 2013, which was three days before the actual event.
Premature announcements
The estimated payout was $281,000 paid to each of the victims’ families, who have raised additional funds from their own websites—some of which were apparently advertised on the web in advance of the shooting. At present, all of the victims, both children and adults, have memorial funds that are currently collecting money.
“Sandy Hook Promise,” which actively solicits money for family members and others “impacted by this tragedy,” as well as for lobbying for “mental wellness and gun safety,” currently boasts over 300,000 people who have made the “Sandy Hook Promise” to turn the “tragedy into a moment of transformation.”
The federal government has also forked over a lot of taxpayer money, including a $150,000 federal grant to Newtown to pay for two “school resource officers” (aka police), and $2.5 million in federal funds from the Department of Justice to compensate the local entities for their trouble: $663,444 to the Connecticut State Police, $602,293 to the town of Newtown, $882,812 to the town of Monroe and $296,838 to other partner agencies.
In addition, the Department of Education has awarded a total of $3.2 million to the Newtown Public School District under Project SERV (School Emergency Response to Violence) to help with ongoing recovery efforts following the shooting. See these reports: US Department of Education awards 1.3 million grant; US Department of Education awards 1.9 million grant. This hush money is sure to keep the lid on things for now.
Gun Control
The families have been out in force, appearing on television and in print, lobbying for gun control in the states and the US capitol. By now, their stories are known to everyone in America. This has created an impression that the Sandy Hook hoax was about gun control. Meanwhile, however, the gun industry has benefited immensely.
Efforts to increase security in schools—and even arm teachers—are underway. The New York Times reports that around 1,500 state gun bills have been introduced since the time of the shooting, and 109 have become law. However, nearly two-thirds of these laws ease legal restrictions and support the rights of gun owners. 
This may well have been an unintentional consequence of an intentional plan. Nonetheless, it is not clear that the Sandy Hook event was carried out solely with the aim of disarming the American public. Perhaps we are seeing a kind of Homeland-Gladio—implementing a strategy of tension with real and simulated events. Remarkably, one of the earliest school safety/gun control proposals came from the family of Noah Pozner:
New Proposal from Noah Pozner family
Both the gun industry and the already immense and rapidly growing “security industry” have also benefitted from the Sandy Hook “shooting,” as we, the citizens of the United States, lose more of our Constitutional rights. A more subtle but nonetheless insidious effect relates to the promotion of mental health screening and the consequent medication of the “mentally unstable” in our society, based upon an event that did not take place, where President Obama has signed an on-going series of executive orders to implement a political agenda. For the latest, check this one out.
The emergence of the Department of Homeland Security as a major threat to democracy cannot go without comment. Even though a subcommittee of the Senate Committee on Homeland Security and Intelligence released a report on 3 October 2012 establishing the virtual non-existence of domestic terrorist threats, DHS has acquired more than 2 billion rounds of .40 calibre hollow-point ammunition. Sandy Hook appears to be part of a complex and evolving scenario, beginning with 9/11, to establish an enhanced Police State. Whether or not it succeeds depends on public awareness and political action.

Vivian Lee, Ph.D., is a Sandy Hook researcher and professor at an East Coast University. Sofia Smallstorm is an independent researcher, who produced and directed “Unraveling Sandy Hook.” James Tracy, Ph.D., maintains a web site at memoryholeblog.com. And Jim Fetzer, Ph.D., a former Marine Corps officer, is McKnight Professor Emeritus at the University of Minnesota Duluth.

The Inside Story of Mt. Gox, Bitcoin’s $460 Million Disaster

Mark Karpeles, chief executive officer of Mt. Gox, center, is escorted as he leaves the Tokyo District Court on Friday, Feb. 28, 2014. Photo: Tomohiro Ohsumi/Bloomberg via Getty Images
Mark Karpeles, the chief executive officer of bitcoin exchange Mt. Gox, center, is escorted as he leaves the Tokyo District Court this past Friday. Photo: Tomohiro Ohsumi/Bloomberg via Getty Images
From a distance, the world’s largest bitcoin exchange looked like a towering example of renegade entrepreneurism. But on the inside, according to some who were there, Mt. Gox was a messy combination of poor management, neglect, and raw inexperience.
Its collapse into bankruptcy last week — and the disappearance of $460 million, apparently stolen by hackers, and another $27.4 million missing from its bank accounts — came as little surprise to people who had knowledge of the Tokyo-based company’s inner workings. The company, these insiders say, was largely a reflection of its CEO and majority stake holder, Mark Karpeles, a man who was more of a computer coder than a chief executive and yet was sometimes distracted even from his technical duties when they were most needed. “Mark liked the idea of being CEO, but the day-to-day reality bored him,” says one Mt. Gox insider, who spoke on condition of anonymity.
Last week, after a leaked corporate document said that hackers had raided the Mt. Gox exchange, Karpeles confirmed that a huge portion of the money controlled by the company was gone. “We had weaknesses in our system, and our bitcoins vanished. We’ve caused trouble and inconvenience to many people, and I feel deeply sorry for what has happened,” Karpeles said, speaking at a Tokyo press conference called to announce the company’s bankruptcy. This would be the second time the exchange was hacked. In June 2011, attackers lifted the equivalent of $8.75 million.
Bitcoin promises to give a bank account to anyone with a mobile phone, no ID required. It’s clearly an amazing and potentially world-changing technology — the first viable, decentralized, reliable form of digital cash. It could democratize international finance. But it’s also a technology that was pushed forward by a community of people who were unprepared or unwilling to deal with even the basics of everyday business. A new wave of entrepreneurs may bring the digital currency a new level of respectability, but over its first several years, bitcoin has been driven largely by computer geeks with little experience in the financial world. The most prominent example is Mark Karpeles.
The Mt. Gox offices in Tokyo. The site of the proposed Bitcoin Cafe would be in the far right space in the photo above. Photo: Ariel Zambelich/WIRED
The Mt. Gox offices in Tokyo. Photo: Ariel Zambelich/WIRED

The King of Bitcoin

The 28-year-old Karpeles was born in France, but after spending some time in Israel, he settled down in Japan. There he got married, posted cat videos and became a father. In 2011, he acquired the Mt. Gox exchange in from an American entrepreneur named Jed McCaleb.
McCaleb had registered the Mtgox.com web domain in 2007 with the idea of turning it into a trading site for the wildly popular Magic: The Gathering game cards. He never followed through on that idea, but in late 2010, McCaleb decided to repurpose the domain as a bitcoin exchange. The idea was simple: he’d provide a single place to connect bitcoin buyers and sellers. But soon, McCaleb was getting wires for tens of thousands of dollars and, realizing he was in over his head, he sold the site to Karpeles, an avid programmer, foodie, and bitcoin enthusiast who called himself Magicaltux in online forums.
Karpeles soon set about rewriting the site’s back-end software, eventually turning it into the world’s most popular bitcoin exchange. A June 2011 hack took the site offline for several days, and according to bitcoin enthusiasts Jesse Powell and Roger Ver, who helped the company respond to the hack, Karpeles was strangely nonchalant about the crisis. But he and Mt. Gox eventually made good on their obligations, earning a reputation as honest players in the bitcoin community. Other bitcoin companies had been hacked and lost customer funds. Most of the time, they simply folded. But Karpeles and Mt. Gox did not.
“He likes to be praised, and he likes to be called the king of bitcoin”
–Mt. Gox insider
As bitcoin prices took off, jumping from $13 at the start of 2013 to more than $1,200 at its peak, Karpeles, as Mt. Gox’s largest stake holder, appeared to become an extremely wealthy man. Mt. Gox did not offer company equity to employees, and by the time of the most recent hack, the company had squirreled away more than 100,000 bitcoins, or $50 million. Karpeles owns 88 percent of the company and McCaleb 12 percent, according to a leaked Mt. Gox business plan.
When Karpeles was interviewed by Reuters in the spring of 2013 — seated, inexplicably, on top of a blue pilates ball — he was a major player in the bitcoin world. He had ponied up 5,000 bitcoins to help kickstart the Bitcoin Foundation, a not-for-profit bitcoin software development and lobbying group, where he was a board member (he has since resigned). And, according to insiders, he thought nothing of dropping the business of the day to order flat screen TVs or $400 lunches for the staff of Gox’s expanded Tokyo headquarters, which now occupies three floors of a modern office building in the city’s Shibuya neighborhood. “He likes to be praised, and he likes to be called the king of bitcoin,” says another insider who spoke on condition of anonymity. “He always talks about how he’s a member of Mensa and has an above-average IQ.”

Citizen Karpeles

But beneath it all, some say, Mt. Gox was a disaster in waiting. Last year, a Tokyo-based software developer sat down in Gox’s first-floor meeting room to talk about working for the company. “I thought it was going to be really awesome,” says the developer, who also spoke on condition of anonymity. Soon, however, there were some serious red flags.
Mt. Gox, he says, didn’t use any type of version control software — a standard tool in any professional software development environment. This meant that any coder could accidentally overwrite a colleague’s code if they happened to be working on the same file. According to this developer, the world’s largest bitcoin exchange had only recently introduced a test environment, meaning that, previously, untested software changes were pushed out to the exchanges customers — not the kind of thing you’d see on a professionally run financial services website. And, he says, there was only one person who could approve changes to the site’s source code: Mark Karpeles. That meant that some bug fixes — even security fixes — could languish for weeks, waiting for Karpeles to get to the code. “The source code was a complete mess,” says one insider.
The unfinished site of the Bitcoin Cafe. Photo: Name Withheld
The unfinished site of the Bitcoin Cafe.
By the fall of 2013, Mt. Gox’s business was also a mess. Federal agents had seized $5 million from the company’s U.S. bank account, because the company had not registered with the government as a money transmitter, and Mt. Gox was being sued for $75 million by a former business partner called CoinLab. U.S. customers complained of months-long delays withdrawing dollars from the exchange, and Mt. Gox had tumbled from the world’s number one bitcoin exchange to position number three.
But Karpeles was obsessed with a new project: The Bitcoin Cafe. Inspired by a French bistro, it would be a stylish hang-out located in the same building as the Mt. Gox offices, a very-new-looking building of metal and glass within walking distance of Tokyo’s largest train station. You could drop by for a beer or some wine, and — using a cash register proudly hacked by Mark Karpeles — you could buy it all with bitcoin. When WIRED tried to meet with Karpeles and Mt. Gox at their offices this past October — and a company representative turned us away, saying that legal reasons prevented Mt. Gox from talking to the press — the placard in the lobby of the building already identified the cafe. This company representative said it would open by the end of the year. It never did.
One insider says that Mt. Gox spent the equivalent of $1 million on the cafe venture, renovating Mt. Gox’s office building to Karepeles’ specifications. At a time when Gox’s business was falling apart, this insider says, the project was a major distraction. “[Karpeles] was super-proud of being able to use his hacked cash register with the code he wrote,” this insider says.
Says another insider, “Aside from the cafe, he liked to spend time fixing servers, setting up networks and installing gadgets… probably distracting himself from dealing with the real issues that the company was up against.”
Then, in February, the company’s fortunes took another turn. Mt. Gox stopped paying out customers in bitcoins, citing a flaw in the digital currency, and after days of silence from the company, protesters turned up outside its offices, asking whether it was insolvent.

Years-Long Hack

According to a leaked Mt. Gox document that hit the web last week, hackers had been skimming money from the company for years. The company now says that it’s out a total of 850,000 bitcoins, more than $460 million at Friday’s bitcoin exchange rates. When bitcoin enthusiast Jesse Powell heard this, he was reminded of June 2011.
After Mt. Gox was hacked for the first time in summer of 2011, a friend asked Powell to help out, and soon, the San Francisco entrepreneur found himself on a plane to Tokyo. After landing, he rushed to Shibuya station, where he was met by his friend, Roger Ver, one of the world’s biggest bitcoin supporters who just happened to live across the street from Mt. Gox. Without bothering to drop off Powell’s bags, the two rushed to the Mt. Gox offices to see what they could do. They worked through the week with Karpeles, other employees, and a handful of other bitcoin enthusiasts. They answered support inquires, did troubleshooting on the site, and tried to support the tiny company in any way they could. At one point, Powell rushed to the Apple store and came back with $5,000 worth of computers that could support the cause. But two days later, the site was still offline.
Ver and Powell were set to work through the weekend, but when they arrived at the company’s tiny office that Saturday, there was a surprise. Mark Karpeles had decided to take the weekend off. The two volunteers were flabbergasted. “I thought that was completely insane and demoralizing for the rest of the team,” Powell remembers. On Monday, Powell says, Karpeles did return to work, but he spent part of the day stuffing envelopes. “I was like: ‘Dude why are you doing this? You can do this anytime. The site is offline. You need to get the site online.’”
Powell last met with Karpeles in January, before news of the latest hack broke. He now runs a competitor to Mt. Gox called Kraken. They had lunch in Tokyo, and Karpeles seemed unworried about Gox’s future. He was excited about his Bitcoin Cafe. “It was probably some light for them in a very dark world of dealing with banks and customer complaints all day,” Powell says. “I’m sure that Mark has been very stressed for a long time and probably the Bitcoin Cafe was a fun project.” But now that world is even darker.
Robert McMillan
Robert McMillan is a writer with Wired Enterprise.

A hidden world, growing beyond controlTop Secret America

Monday, July 19, 2010; 4:50 PM
http://projects.washingtonpost.com/top-secret-america/articles/a-hidden-world-growing-beyond-control/print/
The top-secret world the government created in response to the terrorist attacks of Sept. 11, 2001, has become so large, so unwieldy and so secretive that no one knows how much money it costs, how many people it employs, how many programs exist within it or exactly how many agencies do the same work.
These are some of the findings of a two-year investigation by The Washington Post that discovered what amounts to an alternative geography of the United States, a Top Secret America hidden from public view and lacking in thorough oversight. After nine years of unprecedented spending and growth, the result is that the system put in place to keep the United States safe is so massive that its effectiveness is impossible to determine.
The investigation's other findings include:
* Some 1,271 government organizations and 1,931 private companies work on programs related to counterterrorism, homeland security and intelligence in about 10,000 locations across the United States.
* An estimated 854,000 people, nearly 1.5 times as many people as live in Washington, D.C., hold top-secret security clearances.
* In Washington and the surrounding area, 33 building complexes for top-secret intelligence work are under construction or have been built since September 2001. Together they occupy the equivalent of almost three Pentagons or 22 U.S. Capitol buildings - about 17 million square feet of space.
* Many security and intelligence agencies do the same work, creating redundancy and waste. For example, 51 federal organizations and military commands, operating in 15 U.S. cities, track the flow of money to and from terrorist networks.
* Analysts who make sense of documents and conversations obtained by foreign and domestic spying share their judgment by publishing 50,000 intelligence reports each year - a volume so large that many are routinely ignored.
These are not academic issues; lack of focus, not lack of resources, was at the heart of the Fort Hood shooting that left 13 dead, as well as the Christmas Day bomb attempt thwarted not by the thousands of analysts employed to find lone terrorists but by an alert airline passenger who saw smoke coming from his seatmate.
They are also issues that greatly concern some of the people in charge of the nation's security.
"There has been so much growth since 9/11 that getting your arms around that - not just for the CIA, for the secretary of defense - is a challenge," Defense Secretary Robert M. Gates said in an interview with The Post last week.
In the Department of Defense, where more than two-thirds of the intelligence programs reside, only a handful of senior officials - called Super Users - have the ability to even know about all the department's activities. But as two of the Super Users indicated in interviews, there is simply no way they can keep up with the nation's most sensitive work.
"I'm not going to live long enough to be briefed on everything" was how one Super User put it. The other recounted that for his initial briefing, he was escorted into a tiny, dark room, seated at a small table and told he couldn't take notes. Program after program began flashing on a screen, he said, until he yelled ''Stop!" in frustration.
"I wasn't remembering any of it," he said.
Underscoring the seriousness of these issues are the conclusions of retired Army Lt. Gen. John R. Vines, who was asked last year to review the method for tracking the Defense Department's most sensitive programs. Vines, who once commanded 145,000 troops in Iraq and is familiar with complex problems, was stunned by what he discovered.
"I'm not aware of any agency with the authority, responsibility or a process in place to coordinate all these interagency and commercial activities," he said in an interview. "The complexity of this system defies description."
The result, he added, is that it's impossible to tell whether the country is safer because of all this spending and all these activities. "Because it lacks a synchronizing process, it inevitably results in message dissonance, reduced effectiveness and waste," Vines said. "We consequently can't effectively assess whether it is making us more safe."
The Post's investigation is based on government documents and contracts, job descriptions, property records, corporate and social networking Web sites, additional records, and hundreds of interviews with intelligence, military and corporate officials and former officials. Most requested anonymity either because they are prohibited from speaking publicly or because, they said, they feared retaliation at work for describing their concerns.
The Post's online database of government organizations and private companies was built entirely on public records. The investigation focused on top-secret work because the amount classified at the secret level is too large to accurately track.
Today's article describes the government's role in this expanding enterprise. Tuesday's article describes the government's dependence on private contractors. Wednesday's is a portrait of one Top Secret America community. On the Web, an extensive, searchable database built by The Post about Top Secret America is available at washingtonpost.com/topsecretamerica.
Defense Secretary Gates, in his interview with The Post, said that he does not believe the system has become too big to manage but that getting precise data is sometimes difficult. Singling out the growth of intelligence units in the Defense Department, he said he intends to review those programs for waste. "Nine years after 9/11, it makes a lot of sense to sort of take a look at this and say, 'Okay, we've built tremendous capability, but do we have more than we need?' " he said.
CIA Director Leon Panetta, who was also interviewed by The Post last week, said he's begun mapping out a five-year plan for his agency because the levels of spending since 9/11 are not sustainable. "Particularly with these deficits, we're going to hit the wall. I want to be prepared for that," he said. "Frankly, I think everyone in intelligence ought to be doing that."
In an interview before he resigned as the director of national intelligence in May, retired Adm. Dennis C. Blair said he did not believe there was overlap and redundancy in the intelligence world. "Much of what appears to be redundancy is, in fact, providing tailored intelligence for many different customers," he said.
Blair also expressed confidence that subordinates told him what he needed to know. "I have visibility on all the important intelligence programs across the community, and there are processes in place to ensure the different intelligence capabilities are working together where they need to," he said.
Weeks later, as he sat in the corner of a ballroom at the Willard Hotel waiting to give a speech, he mused about The Post's findings. "After 9/11, when we decided to attack violent extremism, we did as we so often do in this country," he said. "The attitude was, if it's worth doing, it's probably worth overdoing."
Outside a gated subdivision of mansions in McLean, a line of cars idles every weekday morning as a new day in Top Secret America gets underway. The drivers wait patiently to turn left, then crawl up a hill and around a bend to a destination that is not on any public map and not announced by any street sign.
Liberty Crossing tries hard to hide from view. But in the winter, leafless trees can't conceal a mountain of cement and windows the size of five Wal-Mart stores stacked on top of one another rising behind a grassy berm. One step too close without the right badge, and men in black jump out of nowhere, guns at the ready.
Past the armed guards and the hydraulic steel barriers, at least 1,700 federal employees and 1,200 private contractors work at Liberty Crossing, the nickname for the two headquarters of the Office of the Director of National Intelligence and its National Counterterrorism Center. The two share a police force, a canine unit and thousands of parking spaces.
Liberty Crossing is at the center of the collection of U.S. government agencies and corporate contractors that mushroomed after the 2001 attacks. But it is not nearly the biggest, the most costly or even the most secretive part of the 9/11 enterprise.
In an Arlington County office building, the lobby directory doesn't include the Air Force's mysteriously named XOIWS unit, but there's a big "Welcome!" sign in the hallway greeting visitors who know to step off the elevator on the third floor. In Elkridge, Md., a clandestine program hides in a tall concrete structure fitted with false windows to look like a normal office building. In Arnold, Mo., the location is across the street from a Target and a Home Depot. In St. Petersburg, Fla., it's in a modest brick bungalow in a run-down business park.

Each day at the National Counterterrorism Center in McLean, workers review at least 5,000 pieces of terrorist-related data from intelligence agencies and keep an eye on world events. (Photo by: Melina Mara / The Washington Post)
Every day across the United States, 854,000 civil servants, military personnel and private contractors with top-secret security clearances are scanned into offices protected by electromagnetic locks, retinal cameras and fortified walls that eavesdropping equipment cannot penetrate.
This is not exactly President Dwight D. Eisenhower's "military-industrial complex," which emerged with the Cold War and centered on building nuclear weapons to deter the Soviet Union. This is a national security enterprise with a more amorphous mission: defeating transnational violent extremists.
Much of the information about this mission is classified. That is the reason it is so difficult to gauge the success and identify the problems of Top Secret America, including whether money is being spent wisely. The U.S. intelligence budget is vast, publicly announced last year as $75 billion, 21/2 times the size it was on Sept. 10, 2001. But the figure doesn't include many military activities or domestic counterterrorism programs.
At least 20 percent of the government organizations that exist to fend off terrorist threats were established or refashioned in the wake of 9/11. Many that existed before the attacks grew to historic proportions as the Bush administration and Congress gave agencies more money than they were capable of responsibly spending.
The Pentagon's Defense Intelligence Agency, for example, has gone from 7,500 employees in 2002 to 16,500 today. The budget of the National Security Agency, which conducts electronic eavesdropping, doubled. Thirty-five FBI Joint Terrorism Task Forces became 106. It was phenomenal growth that began almost as soon as the Sept. 11 attacks ended.
Nine days after the attacks, Congress committed $40 billion beyond what was in the federal budget to fortify domestic defenses and to launch a global offensive against al-Qaeda. It followed that up with an additional $36.5 billion in 2002 and $44 billion in 2003. That was only a beginning.
With the quick infusion of money, military and intelligence agencies multiplied. Twenty-four organizations were created by the end of 2001, including the Office of Homeland Security and the Foreign Terrorist Asset Tracking Task Force. In 2002, 37 more were created to track weapons of mass destruction, collect threat tips and coordinate the new focus on counterterrorism. That was followed the next year by 36 new organizations; and 26 after that; and 31 more; and 32 more; and 20 or more each in 2007, 2008 and 2009.
In all, at least 263 organizations have been created or reorganized as a response to 9/11. Each has required more people, and those people have required more administrative and logistic support: phone operators, secretaries, librarians, architects, carpenters, construction workers, air-conditioning mechanics and, because of where they work, even janitors with top-secret clearances.
With so many more employees, units and organizations, the lines of responsibility began to blur. To remedy this, at the recommendation of the bipartisan 9/11 Commission, the George W. Bush administration and Congress decided to create an agency in 2004 with overarching responsibilities called the Office of the Director of National Intelligence (ODNI) to bring the colossal effort under control.
While that was the idea, Washington has its own ways.
The first problem was that the law passed by Congress did not give the director clear legal or budgetary authority over intelligence matters, which meant he wouldn't have power over the individual agencies he was supposed to control.
The second problem: Even before the first director, Ambassador John D. Negroponte, was on the job, the turf battles began. The Defense Department shifted billions of dollars out of one budget and into another so that the ODNI could not touch it, according to two senior officials who watched the process. The CIA reclassified some of its most sensitive information at a higher level so the National Counterterrorism Center staff, part of the ODNI, would not be allowed to see it, said former intelligence officers involved.
And then came a problem that continues to this day, which has to do with the ODNI's rapid expansion.
When it opened in the spring of 2005, Negroponte's office was all of 11 people stuffed into a secure vault with closet-size rooms a block from the White House. A year later, the budding agency moved to two floors of another building. In April 2008, it moved into its huge permanent home, Liberty Crossing.
Today, many officials who work in the intelligence agencies say they remain unclear about what the ODNI is in charge of. To be sure, the ODNI has made some progress, especially in intelligence-sharing, information technology and budget reform. The DNI and his managers hold interagency meetings every day to promote collaboration. The last director, Blair, doggedly pursued such nitty-gritty issues as procurement reform, compatible computer networks, tradecraft standards and collegiality.
But improvements have been overtaken by volume at the ODNI, as the increased flow of intelligence data overwhelms the system's ability to analyze and use it. Every day, collection systems at the National Security Agency intercept and store 1.7 billion e-mails, phone calls and other types of communications. The NSA sorts a fraction of those into 70 separate databases. The same problem bedevils every other intelligence agency, none of which have enough analysts and translators for all this work.
The practical effect of this unwieldiness is visible, on a much smaller scale, in the office of Michael Leiter, the director of the National Counterterrorism Center. Leiter spends much of his day flipping among four computer monitors lined up on his desk. Six hard drives sit at his feet. The data flow is enormous, with dozens of databases feeding separate computer networks that cannot interact with one another.
There is a long explanation for why these databases are still not connected, and it amounts to this: It's too hard, and some agency heads don't really want to give up the systems they have. But there's some progress: "All my e-mail on one computer now," Leiter says. "That's a big deal."
To get another view of how sprawling Top Secret America has become, just head west on the toll road toward Dulles International Airport.
As a Michaels craft store and a Books-A-Million give way to the military intelligence giants Northrop Grumman and Lockheed Martin, find the off-ramp and turn left. Those two shimmering-blue five-story ice cubes belong to the National Geospatial-Intelligence Agency, which analyzes images and mapping data of the Earth's geography. A small sign obscured by a boxwood hedge says so.
Across the street, in the chocolate-brown blocks, is Carahsoft, an intelligence agency contractor specializing in mapping, speech analysis and data harvesting. Nearby is the government's Underground Facility Analysis Center. It identifies overseas underground command centers associated with weapons of mass destruction and terrorist groups, and advises the military on how to destroy them.
Clusters of top-secret work exist throughout the country, but the Washington region is the capital of Top Secret America.
About half of the post-9/11 enterprise is anchored in an arc stretching from Leesburg south to Quantico, back north through Washington and curving northeast to Linthicum, just north of the Baltimore-Washington International Marshall Airport. Many buildings sit within off-limits government compounds or military bases.
Others occupy business parks or are intermingled with neighborhoods, schools and shopping centers and go unnoticed by most people who live or play nearby.
Many of the newest buildings are not just utilitarian offices but also edifices "on the order of the pyramids," in the words of one senior military intelligence officer.
Not far from the Dulles Toll Road, the CIA has expanded into two buildings that will increase the agency's office space by one-third. To the south, Springfield is becoming home to the new $1.8 billion National Geospatial-Intelligence Agency headquarters, which will be the fourth-largest federal building in the area and home to 8,500 employees. Economic stimulus money is paying hundreds of millions of dollars for this kind of federal construction across the region.

Construction for the National Geospatial-Intelligence Agency in Springfield (Photo by: Michael S. Williamson / The Washington Post)
It's not only the number of buildings that suggests the size and cost of this expansion, it's also what is inside: banks of television monitors. "Escort-required" badges. X-ray machines and lockers to store cellphones and pagers. Keypad door locks that open special rooms encased in metal or permanent dry wall, impenetrable to eavesdropping tools and protected by alarms and a security force capable of responding within 15 minutes. Every one of these buildings has at least one of these rooms, known as a SCIF, for sensitive compartmented information facility. Some are as small as a closet; others are four times the size of a football field.
SCIF size has become a measure of status in Top Secret America, or at least in the Washington region of it. "In D.C., everyone talks SCIF, SCIF, SCIF," said Bruce Paquin, who moved to Florida from the Washington region several years ago to start a SCIF construction business. "They've got the penis envy thing going. You can't be a big boy unless you're a three-letter agency and you have a big SCIF."
SCIFs are not the only must-have items people pay attention to. Command centers, internal television networks, video walls, armored SUVs and personal security guards have also become the bling of national security.
"You can't find a four-star general without a security detail," said one three-star general now posted in Washington after years abroad. "Fear has caused everyone to have stuff. Then comes, 'If he has one, then I have to have one.' It's become a status symbol."
Among the most important people inside the SCIFs are the low-paid employees carrying their lunches to work to save money. They are the analysts, the 20- and 30-year-olds making $41,000 to $65,000 a year, whose job is at the core of everything Top Secret America tries to do.
At its best, analysis melds cultural understanding with snippets of conversations, coded dialogue, anonymous tips, even scraps of trash, turning them into clues that lead to individuals and groups trying to harm the United States.
Their work is greatly enhanced by computers that sort through and categorize data. But in the end, analysis requires human judgment, and half the analysts are relatively inexperienced, having been hired in the past several years, said a senior ODNI official. Contract analysts are often straight out of college and trained at corporate headquarters.
When hired, a typical analyst knows very little about the priority countries - Iraq, Iran, Afghanistan and Pakistan - and is not fluent in their languages. Still, the number of intelligence reports they produce on these key countries is overwhelming, say current and former intelligence officials who try to cull them every day. The ODNI doesn't know exactly how many reports are issued each year, but in the process of trying to find out, the chief of analysis discovered 60 classified analytic Web sites still in operation that were supposed to have been closed down for lack of usefulness. "Like a zombie, it keeps on living" is how one official describes the sites.
The problem with many intelligence reports, say officers who read them, is that they simply re-slice the same facts already in circulation. "It's the soccer ball syndrome. Something happens, and they want to rush to cover it," said Richard H. Immerman, who was the ODNI's assistant deputy director of national intelligence for analytic integrity and standards until early 2009. "I saw tremendous overlap."
Even the analysts at the National Counterterrorism Center (NCTC), which is supposed to be where the most sensitive, most difficult-to-obtain nuggets of information are fused together, get low marks from intelligence officials for not producing reports that are original, or at least better than the reports already written by the CIA, FBI, National Security Agency or Defense Intelligence Agency.
When Maj. Gen. John M. Custer was the director of intelligence at U.S. Central Command, he grew angry at how little helpful information came out of the NCTC. In 2007, he visited its director at the time, retired Vice Adm. John Scott Redd, to tell him so. "I told him that after 41/2 years, this organization had never produced one shred of information that helped me prosecute three wars!" he said loudly, leaning over the table during an interview.
Two years later, Custer, now head of the Army's intelligence school at Fort Huachuca, Ariz., still gets red-faced recalling that day, which reminds him of his frustration with Washington's bureaucracy. "Who has the mission of reducing redundancy and ensuring everybody doesn't gravitate to the lowest-hanging fruit?" he said. "Who orchestrates what is produced so that everybody doesn't produce the same thing?"
He's hardly the only one irritated. In a secure office in Washington, a senior intelligence officer was dealing with his own frustration. Seated at his computer, he began scrolling through some of the classified information he is expected to read every day: CIA World Intelligence Review, WIRe-CIA, Spot Intelligence Report, Daily Intelligence Summary, Weekly Intelligence Forecast, Weekly Warning Forecast, IC Terrorist Threat Assessments, NCTC Terrorism Dispatch, NCTC Spotlight . . .
It's too much, he complained. The inbox on his desk was full, too. He threw up his arms, picked up a thick, glossy intelligence report and waved it around, yelling.
"Jesus! Why does it take so long to produce?"
"Why does it have to be so bulky?"
"Why isn't it online?"
The overload of hourly, daily, weekly, monthly and annual reports is actually counterproductive, say people who receive them. Some policymakers and senior officials don't dare delve into the backup clogging their computers. They rely instead on personal briefers, and those briefers usually rely on their own agency's analysis, re-creating the very problem identified as a main cause of the failure to thwart the attacks: a lack of information-sharing.

A new Defense Department office complex goes up in Alexandria. (Photo by: Michael S. Williamson / The Washington Post)
The ODNI's analysis office knows this is a problem. Yet its solution was another publication, this one a daily online newspaper, Intelligence Today. Every day, a staff of 22 culls more than two dozen agencies' reports and 63 Web sites, selects the best information and packages it by originality, topic and region.
Analysis is not the only area where serious overlap appears to be gumming up the national security machinery and blurring the lines of responsibility.
Within the Defense Department alone, 18 commands and agencies conduct information operations, which aspire to manage foreign audiences’ perceptions of U.S. policy and military activities overseas.
And all the major intelligence agencies and at least two major military commands claim a major role in cyber-warfare, the newest and least-defined frontier.
"Frankly, it hasn't been brought together in a unified approach," CIA Director Panetta said of the many agencies now involved in cyber-warfare.
"Cyber is tremendously difficult" to coordinate, said Benjamin A. Powell, who served as general counsel for three directors of national intelligence until he left the government last year. "Sometimes there was an unfortunate attitude of bring your knives, your guns, your fists and be fully prepared to defend your turf." Why? "Because it's funded, it's hot and it's sexy."
Last fall, U.S. Army Maj. Nidal Malik Hasan allegedly opened fire at Fort Hood, Tex., killing 13 people and wounding 30. In the days after the shootings, information emerged about Hasan's increasingly strange behavior at Walter Reed Army Medical Center, where he had trained as a psychiatrist and warned commanders that they should allow Muslims to leave the Army or risk "adverse events." He had also exchanged e-mails with a well-known radical cleric in Yemen being monitored by U.S. intelligence.
But none of this reached the one organization charged with handling counterintelligence investigations within the Army. Just 25 miles up the road from Walter Reed, the Army's 902nd Military Intelligence Group had been doing little to search the ranks for potential threats. Instead, the 902's commander had decided to turn the unit's attention to assessing general terrorist affiliations in the United States, even though the Department of Homeland Security and the FBI's 106 Joint Terrorism Task Forces were already doing this work in great depth.
The 902nd, working on a program the commander named RITA, for Radical Islamic Threat to the Army, had quietly been gathering information on Hezbollah, Iranian Republican Guard and al-Qaeda student organizations in the United States. The assessment "didn't tell us anything we didn't know already," said the Army's senior counterintelligence officer at the Pentagon.
Secrecy and lack of coordination have allowed organizations, such as the 902nd in this case, to work on issues others were already tackling rather than take on the much more challenging job of trying to identify potential jihadist sympathizers within the Army itself.
Beyond redundancy, secrecy within the intelligence world hampers effectiveness in other ways, say defense and intelligence officers. For the Defense Department, the root of this problem goes back to an ultra-secret group of programs for which access is extremely limited and monitored by specially trained security officers.
These are called Special Access Programs - or SAPs - and the Pentagon's list of code names for them runs 300 pages. The intelligence community has hundreds more of its own, and those hundreds have thousands of sub-programs with their own limits on the number of people authorized to know anything about them. All this means that very few people have a complete sense of what's going on.
"There's only one entity in the entire universe that has visibility on all SAPs - that's God," said James R. Clapper, undersecretary of defense for intelligence and the Obama administration's nominee to be the next director of national intelligence.
Such secrecy can undermine the normal chain of command when senior officials use it to cut out rivals or when subordinates are ordered to keep secrets from their commanders.
One military officer involved in one such program said he was ordered to sign a document prohibiting him from disclosing it to his four-star commander, with whom he worked closely every day, because the commander was not authorized to know about it. Another senior defense official recalls the day he tried to find out about a program in his budget, only to be rebuffed by a peer. "What do you mean you can't tell me? I pay for the program," he recalled saying in a heated exchange.
Another senior intelligence official with wide access to many programs said that secrecy is sometimes used to protect ineffective projects. "I think the secretary of defense ought to direct a look at every single thing to see if it still has value," he said. "The DNI ought to do something similar."
The ODNI hasn't done that yet. The best it can do at the moment is maintain a database of the names of the most sensitive programs in the intelligence community. But the database does not include many important and relevant Pentagon projects.
Because so much is classified, illustrations of what goes on every day in Top Secret America can be hard to ferret out. But every so often, examples emerge. A recent one shows the post-9/11 system at its best and its worst.
Last fall, after eight years of growth and hirings, the enterprise was at full throttle when word emerged that something was seriously amiss inside Yemen. In response, President Obama signed an order sending dozens of secret commandos to that country to target and kill the leaders of an al-Qaeda affiliate.
In Yemen, the commandos set up a joint operations center packed with hard drives, forensic kits and communications gear. They exchanged thousands of intercepts, agent reports, photographic evidence and real-time video surveillance with dozens of top-secret organizations in the United States.
That was the system as it was intended. But when the information reached the National Counterterrorism Center in Washington for analysis, it arrived buried within the 5,000 pieces of general terrorist-related data that are reviewed each day. Analysts had to switch from database to database, from hard drive to hard drive, from screen to screen, just to locate what might be interesting to study further.
As military operations in Yemen intensified and the chatter about a possible terrorist strike increased, the intelligence agencies ramped up their effort. The flood of information into the NCTC became a torrent.
Somewhere in that deluge was even more vital data. Partial names of someone in Yemen. A reference to a Nigerian radical who had gone to Yemen. A report of a father in Nigeria worried about a son who had become interested in radical teachings and had disappeared inside Yemen.
These were all clues to what would happen when a Nigerian named Umar Farouk Abdulmutallab left Yemen and eventually boarded a plane in Amsterdam bound for Detroit. But nobody put them together because, as officials would testify later, the system had gotten so big that the lines of responsibility had become hopelessly blurred.
"There are so many people involved here," NCTC Director Leiter told Congress.
"Everyone had the dots to connect," DNI Blair explained to the lawmakers. "But I hadn't made it clear exactly who had primary responsibility."
And so Abdulmutallab was able to step aboard Northwest Airlines Flight 253. As it descended toward Detroit, he allegedly tried to ignite explosives hidden in his underwear. It wasn't the very expensive, very large 9/11 enterprise that prevented disaster. It was a passenger who saw what he was doing and tackled him. "We didn't follow up and prioritize the stream of intelligence," White House counterterrorism adviser John O. Brennan explained afterward. "Because no one intelligence entity, or team or task force was assigned responsibility for doing that follow-up investigation."
Blair acknowledged the problem. His solution: Create yet another team to run down every important lead. But he also told Congress he needed more money and more analysts to prevent another mistake.
More is often the solution proposed by the leaders of the 9/11 enterprise. After the Christmas Day bombing attempt, Leiter also pleaded for more - more analysts to join the 300 or so he already had.
The Department of Homeland Security asked for more air marshals, more body scanners and more analysts, too, even though it can't find nearly enough qualified people to fill its intelligence unit now. Obama has said he will not freeze spending on national security, making it likely that those requests will be funded.
More building, more expansion of offices continues across the country. A $1.7 billion NSA data-processing center will be under construction soon near Salt Lake City. In Tampa, the U.S. Central Command’s new 270,000-square-foot intelligence office will be matched next year by an equally large headquarters building, and then, the year after that, by a 51,000-square-foot office just for its special operations section.
Just north of Charlottesville, the new Joint-Use Intelligence Analysis Facility will consolidate 1,000 defense intelligence analysts on a secure campus.
Meanwhile, five miles southeast of the White House, the DHS has broken ground for its new headquarters, to be shared with the Coast Guard. DHS, in existence for only seven years, already has its own Special Access Programs, its own research arm, its own command center, its own fleet of armored cars and its own 230,000-person workforce, the third-largest after the departments of Defense and Veterans Affairs.
Soon, on the grounds of the former St. Elizabeths mental hospital in Anacostia, a $3.4 billion showcase of security will rise from the crumbling brick wards. The new headquarters will be the largest government complex built since the Pentagon, a major landmark in the alternative geography of Top Secret America and four times as big as Liberty Crossing.
Staff researcher Julie Tate contributed to this report.