Thursday, November 08, 2007

AT&T whistleblower: I was forced to connect 'big brother machine'

David Edwards and Jason Rhyne
Raw Story
Thursday November 8, 2007

A former technician at AT&T, who alleges that the telecom forwards virtually all of its internet traffic into a "secret room" to facilitate government spying, says the whole operation reminds him of something out of Orwell's 1984.

Appearing on MSNBC's Countdown program, whistleblower Mark Klein told Keith Olbermann that a copy of all internet traffic passing over AT&T lines was copied into a locked room at the company's San Francisco office -- to which only employees with National Security Agency clearance had access -- via a cable splitting device.

"My job was to connect circuits into the splitter device which was hard-wired to the secret room," said Klein. "And effectively, the splitter copied the entire data stream of those internet cables into the secret room -- and we're talking about phone conversations, email web browsing, everything that goes across the internet."

Asked by Olbermann how he knew what was being sent along those particular lines, Klein said it was all part of his former job:

"As a technician, I had the engineering wiring documents, which told me how the splitter was wired to the secret room," Klein continued. "And so I know that whatever went across those cables was copied and the entire data stream was copied..."

According to Klein, that information included internet activity about Americans.

"We're talking about domestic traffic as well as international traffic," Klein said. " And that's what got me upset to begin with."

Previous Bush administration claims that only international communications were being intercepted aren't accurate, Klein says.

"I know the physical equipment, and I know that statement is not true," he added. "It involves millions of communications, a lot of it domestic communications that they're copying wholesale, sweeping up into that secret room."

When Olbermann asked Klein if being involved in the process reminded him of a scene in the film Invasion of the Body Snatchers, the former technician said he had another movie in mind.

"Actually, I'm a little older so my thought was George Orwell's 1984 and here I am forced to connect the big brother machine," he said. "And I felt I was in a funny position, but I needed my job, so I didn't want to make a fuss a the time. But after I retired, I thought about it some more." According to ABC News, Klein believes AT&T has similar operations in place in as many as 20 other sites.

He is in Washington to lobby Congress not to pass a proposed telecom immunity bill, which would provide legal immunity to companies who secretly participated in NSA warrantless eavesdropping programs. Some of the nation's largest telecommunications companies are currently facing an array of class-action lawsuits related to the matter.

The following video is from MSNBC's Countdown, broadcast on November 7, 2007.


Hillary Clinton faces sensational claims from another woman in Bill's past

uk daily

Hillary Clinton's presidential campaign faced damaging allegations yesterday from one of the women who claim to have been groped by former president Bill.

Kathleen Willey suggests in a new book that the former First Couple could have been involved in her husband Ed's death.

Willey, a former White House aide, alleges a campaign of slander and intimidation has been waged against her by Hillary since she made the sex assault allegations.

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Scandal?: Hillary Clinton said recently she was glad she had stood by Bill

Her book "Target: Caught in the Crosshairs of Bill and Hillary Clinton" details what she says are the threats made against her by the Clintons and their allies.

The most damaging allegation concerns the apparent suicide of her husband Ed in 1993.

He died from a gunshot wound to the head on the day Willey claimed she was sexually assaulted by Clinton in the Oval Office.

Willey insists her husband's death was murder and not suicide.

In an interview published on a US news website to coincide with the book's publication she says she has "suspicions" the Clintons were involved.

Asked by a reporter from World Net Daily if the Clintons were involved in her husband's death she replied: "I do have my suspicions. Yes."

A spokesman for Mrs Clinton's Democratic campaign refused to make any comment last night on the allegations.

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willey clinton

Claims: The cover for Kathleen Willey's book

Willey also claims the Clintons were behind a burglary at her home in Virginia four months ago when she says thieves tried to steal the manuscript of the book after excerpts were serialised in a magazine.

Willey, 57, was working as a volunteer in the White House when she said Clinton assaulted her.

According to Willey, during a meeting in the private study off the Oval Office, Clinton embraced her, kissed her on the mouth and fondled her breast. She also claimed he placed her hand on his crotch.

Clinton denied ever assaulting Willey in the incident which allegedly took place five years before the Monica Lewinsky scandal.

Willey never gave evidence to a Clinton's impeachment trial after some members of the House and Senate refused to allow her to testify.

On the same night the alleged assault took place in November 1993, Willey's husband Ed died from a single gunshot wound.

The Virginia lawyer was over £300,000 in debt and had embezzled money from a client.

He left a suicide note in which he apologised for running up the debts, and also a $100 lottery ticket for his wife.

Willey claims in her book that the autopsy on her husband failed to show it was suicide.

She says the coroner told her he died from a shot fired by a right-handed person, while her husband was left-handed.

Willey also claims her husband's death bore striking similarities to that of Vince Foster.

He was a deputy White House counsel and close friend of Hillary who committed suicide in 1993.

Willey says she wrote the book because of misunderstanding about what had happened. She said: "There is so much misinformation out there. I now have the opportunity to set the record straight."

FBI: Al Qaeda May Strike U.S. Shopping Malls in LA, Chicago

The Blotter
Thursday November 8, 2007

The FBI is warning that al Qaeda may be preparing a series of holiday attacks on U.S. shopping malls in Los Angeles and Chicago, according to an intelligence report distributed to law enforcement authorities across the country this morning.

The alert said al Qaeda "hoped to disrupt the U.S. economy and has been planning the attack for the past two years."

Law enforcement officials tell ABCNews.com that the FBI received the information in late September and declassified it yesterday for wide distribution.

The alert, like similar FBI and Department of Homeland Security terror alerts issued over the past five years at holiday times, raised questions about the credibility of the information.

The bulletin acknowledges that U.S. intelligence officers are uncertain as to whether the information is real, and intelligence officers say there is a concern that it could be "disinformation."

Law enforcement officials at three different agencies told ABCNews.com the FBI alert was based on a source who has proved reliable in the past.

The source reportedly had only "indirect access" to al Qaeda and word of the actual threat came to U.S. intelligence officers "through a lengthy chain" of contacts.

With the shopping season approaching, however, the FBI officials decided it was necessary to share the information.

Full article here.

The American empire is falling with the dollar

Paul Craig Roberts
Online Journal
Thursday November 8, 2007

The US dollar is still officially the world's reserve currency, but it cannot purchase the services of Brazilian super model Gisele Bundchen. Gisele required the $30 million she earned during the first half of this year to be paid in euros.

Gisele is not alone in her forecast of the dollar's fate. The First Post (UK) reports that Jim Rogers, a former partner of billionaire George Soros, is selling his home and all possessions in order to convert all his wealth into Chinese yuan.

Meanwhile, American economists continue to preach that offshoring is good for the US economy and that Bush's war spending is keeping the economy going. The practitioners of supply and demand have yet to figure out that the dollar's supply is sinking the dollar's price and along with it American power.

The macho super patriots who support the Bush regime still haven't caught on that US superpower status rests on the dollar being the reserve currency, not on a military unable to occupy Baghdad. If the dollar were not the world currency, the US would have to earn enough foreign currencies to pay for its 737 oversees bases, an impossibility considering America's $800 billion trade deficit.

When the dollar ceases to be the reserve currency, foreigners will cease to finance the US trade and budget deficits, and the American Empire along with its wars will disappear overnight. Perhaps Bush will be able to get a World Bank loan, or maybe one from the "Chavez bank," to bring the troops home from Iraq and Afghanistan.

Foreign leaders, observing that offshoring and war are accelerating America's relative economic decline, no longer treat the US with the deference to which Washington is accustomed. Ecuador's president, Rafael Correa, recently refused Washington's demand to renew the lease on the Manta air base in Ecuador. He told Washington that the US could have a base in Ecuador if Ecuador could have a military base in the US.

When Venezuelan president Hugo Chavez addressed the UN, he crossed himself as he stood at the podium. Referring to President Bush, Chavez said, "Yesterday the devil came here, and it smells of sulfur still today." Bush, said Chavez, was standing "right here, talking as if he owned the world."

In his state of the nation message last year, Russian president Vladimir Putin said that Bush's blathering about democracy was nothing but a cloak for the pursuit of American self-interests at the expense of other peoples. "We are aware what is going on in the world. Comrade wolf knows whom to eat, and he eats without listening, and he's clearly not going to listen to anyone." In May 2007, Putin criticized the neocon regime in Washington for "disrespect for human life" and "claims to global exclusiveness, just as it was in the time of the Third Reich."

Even America's British allies regard President Bush as a threat to world peace and the second most dangerous man alive. Bush is edged out in polls by Osama bin Laden, but is regarded as more dangerous than Iran's demonized president and North Korea's Kim Jong-il.

President Bush has achieved his dismal world standing despite spending $1.6 billion of hard-pressed Americans' tax money on public relations between 2003 and 2006.

Clearly, America's leader and America's currency are poorly regarded. Is there a solution?

Perhaps the answer lies in those 737 overseas bases. If those bases were brought home and shared among the 50 states, each state would gain 15 new military bases.

Imagine what this would mean: The end of the housing slump. A reduction in the trade deficit. And the end of the war on terror.

Who would dare attack a country with 15 new military bases in every state in addition to the existing ones? Wherever a terrorist turned, he would find himself surrounded by soldiers.

All of the dollars currently spent abroad to support 737 overseas bases would be spent at home. Income for foreigners would become income for Americans, and the trade deficit would shrink.

The impact of the 737 military base payrolls on the US economy would end the housing crisis and bring back the 140,000 highly paid financial services jobs, the loss of which this year has cost the US $42 billion in consumer income. Foreclosures and bankruptcies would plummet.

If this isn't enough to turn the dollar around, President Bush's pledge not to appoint an attorney general if Michael Mukasey is not confirmed offers more promise. If the Democrats will defeat Mukasey's nomination, there are other superfluous cabinet departments that can be closed down in addition to the US Department of Torture and Indefinite Detention.

The American empire is being unwound on the battlefields of Iraq and Afghanistan. The year is two months from being over, but already in 2007, despite the touted "surge," deaths of US soldiers are the highest of any year of the war.

The Taliban are the ones who are surging. They have taken control of a third district in Western Afghanistan. Turkey and the Kurds are on the verge of turning northern Iraq into a new war zone, another demonstration of American impotence.

Bush's wars have endangered America's puppet regimes. Bush's Pakistani puppet, Musharraf, is fighting for his life. By resorting to "emergency rule" and oppressive measures, Musharraf has intensified his opposition. When Musharraf falls, thanks to Bush, the Islamists will have nukes.

American generals used to say that the wars Bush started in the Middle East would take 10 years to win. On Oct. 31, General John Abizaid, former commander of US forces in the Middle East, put paid to that optimistic forecast. Speaking at Carnegie Mellon University, Gen. Abizaid said it would be 50 years before US troops can leave the Middle East.

There is no possibility of the US remaining in the Middle East for a half century. The dollar and US power are already on their last legs, unbeknownst to Democratic leaders Pelosi and Reid who are preparing yet another blank check for Bush's latest request for $200 billion in supplementary war funding.

There isn't any money with which to fund Bush's lost war. It will have to be borrowed from China.

The Romans brought on their own demise, but it took them centuries. Bush has finished America in a mere seven years.

Even as Gisele throws off the dollar's hegemony, Brazil, Venezuela, Ecuador, Bolivia, Argentina, Uruguay, Paraguay, and Columbia are declaring independence from the IMF and World Bank, instruments of US financial hegemony, by creating their own development bank, thus bringing to an end US suzerainty over South America.

An empire that has lost its backyard is finished.

Sarkozy Says Dollar Drop Risks Triggering Trade War

Francois de Beaupuy
Bloomberg
Wednesday November 7, 2007

French President Nicolas Sarkozy told a joint session of the U.S. Congress the Bush administration must stem the dollar's plunge or risk triggering a trade war.

``The dollar cannot remain `someone else's problem,''' Sarkozy said today on Capitol Hill. ``If we are not careful, monetary disarray could morph into economic war. We would all be its victims.''

Sarkozy's complaints that the U.S. currency's drop against the euro is undermining European competitiveness struck a discordant note in a summit intended to demonstrate an improving U.S.-French relationship. His comments came as the euro surged to a record high against the dollar. The currency touched $1.4731 today, a 65 percent gain since the end of 2001.

Concern that the euro is too strong has been a Sarkozy theme since his presidential campaign earlier this year. Since his May 6 election, he has urged European Central Bank officials to lower interest rates to weaken the currency.

``If anything, this is a signal to the ECB that the euro has accelerated and they need to bear that in mind and not rush to raise rates,'' said Laurence Boone, chief French economist at Barclays Capital in Paris. ``When the dollar is depreciating, French firms are more affected than those in Germany.''

Full article here.

CNN: 'The price for backing dictators' may be to box America in

David Edwards and Muriel Kane
Raw Story
Thursday November 8, 2007

Since Pakistan's President Musharraf suspended constitutional government over the weekend, the United States has been urging him to restore the rule of law but has stopped short of applying any real pressure that might force him to do so.

Pakistan's chief justice, Iftikhar Chaudhry, who was ousted and then placed under house arrest after the Pakistani Supreme Court refused to ratify Musharraf's actions, spoke by phone to CNN's Wolf Blitzer on Tuesday, telling him that "of course" Musharraf is a dictator and that greater pressure by the United States might force him to reverse his actions.

"Musharraf isn't the first hardline leader to put Washington in a rather awkward position," Blitzer noted, turning to CNN correspondent Brian Todd for background.

"They're in a real bind here," Todd agreed. "Preaching democracy, rarely a clean proposition for American presidents."

George W. Bush promised in his second inaugural address that "all who live in tyranny and hopelessness can know the United States will not ignore your oppression or excuse your oppressors." However, while Bush did describe the crackdown by the Burmese dictatorship in September as "inexcusable," he has been far more restrained in his criticism of Musharraf's actions, tempering his concerns about democracy with praise for Musharraf as "a strong fighter against extremists and radicals."

Todd pointed out that America has often supported dictators in the past, especially during the Cold War. "Donald Rumsfeld once shook hands with Saddam Hussein on behalf of Ronald Reagan. ... Americans embraced the like of Manual Noriega, the Shah of Iran, Ferdinand Marcos ... none of whom ever considered free and fair elections."

"Partnerships with strong men, some say just as necessary now as then," Todd concluded. "But some analysts say so-called realpolitik, while it serves America's immediate interests, also boxes it in."

Steve Clemons of the New America Foundation told CNN, "It's terribly hypocritical to go into this world and talk democracy as boldly and robustly as this administration did and then cozy up to a dictator now like Musharraf. President Bush can no longer go out and give a pro-democracy speech."

The following video is from CNN's Situation Room, broadcast on November 6, 2007.


Senate May Vote on "Thought Crimes" Act

JBS
Thursday November 8, 2007

On October 23, the House of Representatives passed H.R. 1955, the "Violent Radicalization and Homegrown Terrorism Prevention Act of 2007" by a landslide vote of 404 to 6. The bill has been referred to the Senate where it awaits scrutiny from the Committee on Homeland Security and Governmental Affairs.

According to supporters, the measure will play an important role in helping government and law enforcement officials understand and prevent domestic terrorism. In a speech on the House floor advocating passage of the bill, Rep. Jane Harman (D-Calif.) -- the coauthor and initial sponsor of the measure -- warned that the next time the U.S. faces a terrorist threat, "my assumption is that many who attack us will already be here, and some will be US citizens." To prevent that attack, she said, the new "legislation will help the nation develop a better understanding of the forces that lead to homegrown terrorism, and the steps we can take to stop it."

Critics of the measure allege that it is a thinly veiled and dangerous attempt to criminalize dissent. Such concern is based on the bill’s vague and open-ended language that, critics say, could be used by the government to trample basic rights to free speech and assembly and turn legitimate dissent into thought crimes.

Diana inquest hears of plot to 'assassinate' the princess

DAN NEWLING
UK Daily Mail
Thursday November 8, 2007

The inquest into the death of Princess Diana yesterday heard the full details of the extraordinary conspiracy theory explaining how the Princess and her lover Dodi Fayed died.

Michael Mansfield QC outlined for the first time how Mohammed Al Fayed believes the couple were deliberately assassinated as they drove through Paris.

Mr Mansfield suggested that the couple's Mercedes, driven by French chauffeur Henri Paul, was deliberately blocked by two cars - a white Fiat Uno and another dark car, similar to a Citroen Berlingo.

At the same time there was a sudden, bright light - potentially from a military-style anti-personnel flash gun - which disorientated Mr Paul and caused him to crash

Princess Diana, Dodi and Mr Paul all died when their Mercedes 280S careered into a support pillar of the Pont de l'Alma underpass in Paris on the night of August 31, 1997.

Senior police accident investigator Sgt Anthony Read claimed the crash was an accident that occurred due to a number of unrelated factors.

Primary among them was that Mr Paul, who was speeding at well over 60 mph, had to swerve to avoid a white Fiat Uno that had unexpectedly joined the road ahead him.

However, during the course of cross-examining Sgt Read in London's High Court, Mr Mansfield outlined his astonishing alternative theory of what happened.

Full article here.

NFL Star Considered 9/11 a False Flag From Day One

Super Bowl winner and former Dallas Cowboys ace Stepnoski goes further during radio interview

Paul Joseph Watson
Prison Planet
Thursday, November 8, 2007

Former Dallas Cowboys Super-Bowl winner and five time Pro Bowler Mark Stepnoski said in a radio interview yesterday that anybody who still believes the official story of 9/11 is either incredibly naive or in complete denial, as he revealed how he considered the event to be a possible false flag operation on the very day it happened.

Stepnoski went public in an interview with the Indiana based Erie-Times newspaper on Sunday, but during an interview on The Alex Jones Show he went further and revealed that his questions about 9/11 began on the very day of the attacks.

"I just remember at the time thinking to myself - is this really a terrorist attack on us by a foreign nation or is this a false flag operation being conducted by our government," said Stepnoski, adding that he had carefully studied the Kennedy assassination, Watergate, and the Oklahoma City bombing, which led him to immediately doubt the official story.

"I noticed there were a lot of parallels between 9/11 and that event (Oklahoma City bombing), bombs being found in the building, scientists coming out and saying that an ammonium nitrate bomb could never cause that much damage," said the former NFL star.

"Studying that time period, the Vietnam war, Watergate, all these things that signified cover-up by the government - as time moves on you become more and more aware as a citizen that secrecy is the rule of the day with our government and any time anything revelatory comes to light regarding nefarious activities of our government it's immediately discredited and hushed up," said Stepnoski, praising the role of the alternative media for providing true sources of information that can't be sanitized.

Stepnoski said there were too many instances of foreknowledge regarding 9/11 to be discounted, citing how public officials got warnings not to fly on the eve of the attacks.

"When you think about the similarities to the Oklahoma City bombing, that day the Alcohol, Tobacco and Firearm agents who were employed in that building didn't show up for work - the same way that John Ashcroft got a tip not to fly commercially before 11, the same way Willie Brown got a tip not to fly beforehand," said Stepnoski.

"When you listen to the transcripts of the air traffic controllers on the day of 9/11, the first words out of their mouth was 'is this live or is this an exercise'" said Stepnoski, referring to the multiple exercises that were taking place that dovetailed 9/11 on that very morning.

"Once people become familiar with the protocol that exists, it's readily apparent that the protocol was broken on that day and the events that happened on that day, the way they transpired, that is not commonplace," said Stepnoski, citing NORAD's lack of response in intercepting the errant aircraft.

"It just goes without saying - it was an anomaly, things were purposefully altered that day," he said.

The former Super Bowl champion then discussed the geopolitical maneuverings that preceded 9/11 and gave the Neo-Cons the pretext to launch the attack.

"Our military is now used basically as an instrument to secure and protect oil supplies because that is the lifeblood of our economy," said Stepnoski, adding, "Sixty per cent of the recoverable oil in the world is in the middle east - it's in a piece of land roughly the size of Texas, and that's why I believe Dick Cheney, even though he was subpoenaed several times, he would not release the records from his energy task force in 2001 because that's exactly what was discussed in that meeting."

Stepnoski discussed what he termed the "threshold concept," where people arrive at a point where they had gathered enough information to make the leap beyond the parameters of thinking that have been set for them by the consensus.

"When you look at the information that's out there and the credibility of the sources - anybody now who still believes the official story of 9/11 is either incredibly naive or is exhibiting complete and total denial," said Stepnoski.

Click here to listen to the audio MP3.

China Says It Will Dump Dollar

FreeMarketNews.com
November 08, 2007

In two October articles, FMNN predicted a coming Chinese dollar dump. The UK Telegraph has confirmed it (see below). And yesterday Bloomberg ran the news as well.

=====

Bloomberg story as follows:

The dollar slid to record lows against the euro and the Canadian dollar after a Chinese government adviser said plans to diversify foreign-exchange reserves will involve buying better-performing currencies.

The currency slumped to a 26-year low against the pound and a 23-year low against the Australian dollar. Cheng Siwei, vice chairman of China’s National People’s Congress, told a conference in Beijing the country “will favor stronger currencies” when adjusting its $1.43 trillion of reserves. He later added that doesn’t mean buying more euros.

“We’re likely to see further pressure on the dollar,’” said Thomas Harr, senior foreign exchange strategist in Singapore at Standard Chartered Plc, a U.K. bank that makes most of its profit in Asia. “The potential for diversification is quite big. This a structurally negative story for the dollar.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=aDV6XhaTyJZg&refer=home

=====

The UK Telegraph is reporting that Asian dollar outflows are exceeding expectations, led by China and Japan. This confirms recent stories here at FMNN, including this one, now updated.

1. Original Title: Chinese $ Sell-Off Rumors Triggers Concern, Rash of Conspiracy Reports (2)

See also:

2. http://www.freemarketnews.com/WorldNews.asp?nid=49620
China $200 Bil ‘SuperFund’ Set to Drain American Dollars

=====

Today, the Telegraph reports:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/16/bcnchina116.xml

Japan and China led a record withdrawl of foreign funds from the United States in August, heightening fears of a fresh slide in the dollar and a spike in US bond yields. The US requires $70bn a month in capital inflows to cover its current account deficit. Data from the US Treasury showed outflows of $163bn (£80bn) from all forms of US investments. “These numbers are absolutely stunning,” said Marc Ostwald, an economist at Insinger de Beaufort.

Mr Ostwald warned that US bond yields could start to rise again unless the outflows reverse quickly. “Woe betide US Treasuries if inflation does not remain benign,” he said. The release comes a day after the IMF warned that the dollar was still overvalued and likely to face “some depreciation in the medium term”.

Asian investors dumped $52bn worth of US Treasury bonds alone, led by Japan ($23bn), China ($14.2bn) and Taiwan ($5bn). It is the first time since 1998 that foreigners have, on balance, sold Treasuries.

=====

Previous FMNN report continues here:

In its ongoing struggle to disinflate its own economy and drain some of the trillion-plus devaluing American dollars that it holds, China’s leadership has apparently authorized the hush-hush creation of a US$200 billion “super fund” that will purchase raw materials around the world, according to FMNN sources close to the Chinese top leadership. The report comes on the heels of a previous FMNN report that Chinese banks have begun to cautiously trade down China’s horde of American dollars via international currency markets

In its ongoing struggle to disinflate its own economy and drain some of the trillion-plus devaluing American dollars that it holds, China’s leadership has apparently authorized the hush-hush creation of a US$200 billion “super fund” that will purchase raw materials around the world, according to FMNN sources close to the Chinese top leadership.

The so-called superfund will consist of assets of Chinese institutions whose investments will be swapped out for mostly for American dollars that will then be re-invested in foreign assets, the kinds of commodities that China needs to fuel its roaring economy.

China is awash with cash - dollars, euros, etc. - and the amount of cash in the country is inflating its stock market and causing interest rates to plummet despite the efforts of the leadership to slow the country’s tremendous growth rate - which some believe is approaching a classic “bubble.”

By re-exporting the dollars and euros that are flooding in, China can likely remove some inflationary pressures and have a positive effect on real interest rates as well. Additionally, China will be realizing ownership of assets around the world, and doing so in a non-controversial way as the ownership will not be obvious.

China previously was subject to a spate of bad publicity when it tried to take over large raw material companies in Canada - a move that was ultimately rejected amidst a chorus of indignation from Canada’s political leadership and business community.

While the move may be positive for China’s currency position and guarantee an increased exposure to commodities, it will likely put more pressure on the struggling American dollar.

As Oil Approaches $100, Markets Plunge

Peter Cohan
BloggingStocks
November 9, 2007

The New York Times reports that the Dow lost 360 points — or 2.64% — back to where it was before Ben Bernanke cut the Federal Funds Rate an unexpectedly large 50 basis points. My message to Bernanke is that cutting rates just to keep the market from falling is not a winning strategy.

The Fed is supposed to keep inflation in check, and it’s failing at that job. How so? At $96.37, the price of oil is near an unprecedented $100, and gasoline prices — which blessedly dropped during the fall — are poised to rise about 50% to $4.50 a gallon, just as people step up their driving during the holidays. On January 19, 2001, oil was $24 a barrel – it has since quadrupled. Meanwhile, the cost of heating a home is hitting a record — $3.05 a gallon for home heating oil in Massachusetts. It may be higher elsewhere.

Then there’s the little problem that the Fed has engendered through its rate cuts — a dollar that’s plunging like a knife. Relative to the euro, the dollar has lost 13% from $1.30 at the beginning of January 2007, to its current $1.47. And since January 19, 2001, the dollar has lost 60% of its value! Back then, one euro bought 92 cents. In addition to Brazilian supermodel Gisele Bundchen, China is now seeking to switch from the dollar to the euro. So the dollar drop is feeding on itself.

But what scares investors the most is the uncertainty about how badly the world’s financial system will bleed as a result of write-downs of bad loans. With $456 billion in Level 3 assets, the country’s largest nine largest banks would barely have anything left of their $584 billion in capital if they had to write all these mark-to-model assets down to zero.

I don’t know if it will get that bad. But the uncertainty about how bad it is and how bad it could be is scaring investors.

The Media is Ignoring Ron Paul, says CNN

Chris Brunner
LRC Blog
November 7, 2007

I must admit I was a little surprised to hear CNN criticizing the (other?) media for not giving Ron Paul a fair shake. They even went so far as to include a graph that compares Ron Paul’s 4,695 mentions on television to McCain’s 95,005 mentions in the same time frame. I can’t imagine where Fred Thompson or Mitt Romney would rank, but I’m sure it’s much higher than McCain.

The part I’m speaking of begins shortly after the 1 minute mark.

Hard-Money Advisors Behind Ron Paul

FMNN
November 07, 2007

FMNN NEWS ANALYSIS/OPINION

FMNN recently reported on hard-money advisor Peter Schiff asking everyone on his 60,000-plus e-mail list to donate $2300 to the campaign of GOP presidential candidate Ron Paul (R-Tex) - and now an FMNN feedbacker “Jhe” has written to advise other “hard-money” advisors to do the same.

http://www.freemarketnews.com/WorldNews.asp?nid=51133

Jhe writes: “Thank You Peter! I see you doing battle on TOUT-TV all the time. To borrow a phrase from Tucker (I think); it’s like an episode of the twilight zone and he is the only sane person left in the world. Tucker was talking about Ron BTW. Your writings are spot on and I’m proud of you for laying it out there for the future of the Republic. All the commentators in the hard asset camp really need to follow your lead and get 100% LONG RON PAUL!”

Interesting point, Jhe. Ron Paul rightly believes that gold and silver are “honest money” - and have acted as such for millenia. The “fiat money” experiment in America and worldwide is likely some 40 years old at best. In fact, an argument can be made that the world remains on at least a gold standard as central banks continue to hold gold, as do the world’s wealthiest citizens. Thus, some remain on the “gold standard” while others, who hold paper “bills” do not. Too bad for them. Gold has doubled in the 21st century while the American dollar has greatly eroded in value.

As gold and silver have gained greatly in relative value against the American global foundational currency, hard-money advisors have made a come-back in the mainstream financial world. There are likely thousands, even tens of thousands of financial advisors recommending that at least a portion of one’s assets ought to be in gold and silver.

Ron Paul believes in gold and silver as an “honest” store in value. He would like to see a return to honest money, believing it is fairer to all, whereas the current system, which makes the circulation of honest money difficult, benefits only the very wealthy and those closest to the central bank “spigot.”

Those in favor of honest money, including advisors, have reason to back Ron Paul. Maybe, as Schiff has thought to do, and as Jhe has suggested, they want provide funds to a campaign that supports their convictions - and their businesses.

UPDATE: FMNN received this update from Feedbacker James Kuo: “Also, last night Richard Russell of Dow Theory fame wrote to his 10,000 paid subscribers that he will vote for Ron Paul. The smart money is definitely on Ron Paul in 2008!” (FMNN has not confirmed.)

Sphere: Related Content

Mark Klein on AT&T/NSA Domestic Surveillance Program: “The NSA is Getting Everything.”

Cryptogon
November 8th, 2007

Must see related stories:

NSA, AT&T and the NarusInsight Intercept Suite

Synthetic Environments for Analysis and Simulation

AT&T Invents Programming Language for Mass Surveillance

Via: Washington Post:

A Story of Surveillance
Former Technician ‘Turning In’ AT&T Over NSA Program

By Ellen Nakashima
Washington Post Staff Writer
Wednesday, November 7, 2007; D01

His first inkling that something was amiss came in summer 2002 when he opened the door to admit a visitor from the National Security Agency to an office of AT&T in San Francisco.

“What the heck is the NSA doing here?” Mark Klein, a former AT&T technician, said he asked himself.

A year or so later, he stumbled upon documents that, he said, nearly caused him to fall out of his chair. The documents, he said, show that the NSA gained access to massive amounts of e-mail and search and other Internet records of more than a dozen global and regional telecommunications providers. AT&T allowed the agency to hook into its network at a facility in San Francisco and, according to Klein, many of the other telecom companies probably knew nothing about it.

Klein is in Washington this week to share his story in the hope that it will persuade lawmakers not to grant legal immunity to telecommunications firms that helped the government in its anti-terrorism efforts.

The plain-spoken, bespectacled Klein, 62, said he may be the only person in the country in a position to discuss firsthand knowledge of an important aspect of the Bush administration’s domestic surveillance program. He is retired, so he isn’t worried about losing his job. He did not have security clearance, and the documents in his possession were not classified, he said. He has no qualms about “turning in,” as he put it, the company where he worked for 22 years until he retired in 2004.

“If they’ve done something massively illegal and unconstitutional — well, they should suffer the consequences,” Klein said. “It’s not my place to feel bad for them. They made their bed, they have to lie in it. The ones who did [anything wrong], you can be sure, are high up in the company. Not the average Joes, who I enjoyed working with.”

In an interview yesterday, he alleged that the NSA set up a system that vacuumed up Internet and phone-call data from ordinary Americans with the cooperation of AT&T . Contrary to the government’s depiction of its surveillance program as aimed at overseas terrorists, Klein said, much of the data sent through AT&T to the NSA was purely domestic. Klein said he believes that the NSA was analyzing the records for usage patterns as well as for content.

He said the NSA built a special room to receive data streamed through an AT&T Internet room containing “peering links,” or major connections to other telecom providers. The largest of the links delivered 2.5 gigabits of data — the equivalent of one-quarter of the Encyclopedia Britannica’s text — per second, said Klein, whose documents and eyewitness account form the basis of one of the first lawsuits filed against the telecom giants after the government’s warrantless-surveillance program was reported in the New York Times in December 2005.

Claudia Jones, an AT&T spokeswoman, said she had no comment on Klein’s allegations. “AT&T is fully committed to protecting our customers’ privacy. We do not comment on matters of national security,” she said.

The NSA and the White House also declined comment on Klein’s allegations.

Klein is urging Congress not to block Hepting v. AT&T, a class-action suit pending in federal court in San Francisco, as well as 37 other lawsuits charging carriers with illegally collaborating with the NSA. He was accompanied yesterday by lawyers for the Electronic Frontier Foundation, which filed Hepting v. AT&T in 2006. Together, they are urging key U.S. senators to oppose a pending White House-endorsed immunity provision that would effectively wipe out the lawsuits. The Judiciary Committee is expected to take up the measure Thursday.

In summer 2002, Klein was working in an office responsible for Internet equipment when an NSA representative arrived to interview a management-level technician for a special job whose details were secret.

“That’s when my antennas started to go up,” he said. He knew that the NSA was supposed to work on overseas signals intelligence.

The job entailed building a “secret room” in an AT&T office 10 blocks away, he said. By coincidence, in October 2003, Klein was transferred to that office and assigned to the Internet room. He asked a technician there about the secret room on the 6th floor, and the technician told him it was connected to the Internet room a floor above. The technician, who was about to retire, handed him some wiring diagrams.

“That was my ‘aha!’ moment,” Klein said. “They’re sending the entire Internet to the secret room.”

The diagram showed splitters, glass prisms that split signals from each network into two identical copies. One fed into the secret room, the other proceeded to its destination, he said.

“This splitter was sweeping up everything, vacuum-cleaner-style,” he said. “The NSA is getting everything. These are major pipes that carry not just AT&T’s customers but everybody’s.”

One of Klein’s documents listed links to 16 entities, including Global Crossing, a large provider of voice and data services in the United States and abroad; UUNet, a large Internet provider in Northern Virginia now owned by Verizon; Level 3 Communications, which provides local, long-distance and data transmission in the United States and overseas; and more familiar names such as Sprint and Qwest. It also included data exchanges MAE-West and PAIX, or Palo Alto Internet Exchange, facilities where telecom carriers hand off Internet traffic to each other.

“I flipped out,” he said. “They’re copying the whole Internet. There’s no selection going on here. Maybe they select out later, but at the point of handoff to the government, they get everything.”

Qwest has not been sued because of media reports last year that said the company declined to participate in an NSA program to build a database of domestic phone-call records out of concern about its legality. What the documents show, Klein contends, is that the NSA apparently was collecting several carriers’ communications, probably without their consent.

Another document showed that the NSA installed in the room a semantic traffic analyzer made by Narus, which Klein said indicated that the NSA was doing content analysis.

Steve Bannerman, Narus’s marketing vice president, said in an interview that the NarusInsight system is “the world’s most powerful Internet traffic processing engine.” He said it is used to detect worms, as well as to capture information to help authorities stop criminal activity. He said it can track a communication’s origin and destination, as well as its content. He declined to comment on AT&T’s use of the system.

Klein said he decided to go public after President Bush defended the NSA’s surveillance program as limited to collecting phone calls between suspected terrorists overseas and people in the United States. Klein said the documents show that the scope was much broader.

Klein was last in Washington in 1969, to take part in an antiwar protest. Now, he said with a chuckle, he’s here in a gray suit as a lobbyist.

Zombie Nation

David Penner
Global Research
November 6, 2007

As The Office of the Vice President continues to scheme and plot for war with Iran, which would also likely correspond with martial law at home, the American worker continues to sink deeper and deeper into a horrifying abyss of economic, moral, and spiritual slavery. Even during the worst days of the Depression, never was the American worker more crushed, more beaten, more defeated. Never was he more atomized, more alienated, more alone.

Listen to what people are talking about on TV, on the streets, and in restaurants, and it is clear the American people are pathologically disconnected from reality. This disconnection from reality is particularly pronounced in both the media and academia, where the most critical issues of our time are either completely ignored, or drowned in a barrage of hyperbole and euphemistic blather. It is as if, due to so many decades of brainwashing, Americans are no longer capable of reason, no longer capable of independent thought.

It is also becoming harder and harder to obtain a good paying job without compromising oneself ideologically due to the destruction of the public sphere. The role that the military and prison industrial complexes play in providing employment, and the role played by the media and the education system in indoctrination, pose grave questions about whether constitutional democracy and American capitalism can continue to coexist, or whether the elite will sever the marriage entirely ushering in a military form of government. The unprecedented domination of work in American society, and the cult of placing one’s career above and beyond all other considerations, has dehumanized the American people and turned them into collaborators.

In the education system, where universities are increasingly owned lock, stock and barrel by corporations (many universities are corporations), free market dogma reigns unchallenged. The education system, together with the unprecedented power of the mass media, have ushered in a brave new world where Newspeak reigns over the enlightenment, madness over empiricism, and barbarism over reason.

As Americans, we are so fond of saying how we have freedom of speech, but all too often, this simply is not so. How many students at expensive private colleges are permitted to speak out against any number of the vast myriad of unspeakable issues: the destruction of families and communities in American society, the likelihood of war on Iran, the prison-industrial complex, the use of outsourcing and offshoring to destroy unions, the current genocide being waged against black Americans, the censorship in American society? If a student wants to get good grades so as to be able to secure a good paying job later on, the rules are clear: say what you are supposed to say, write what you’re supposed to write: shut up and do as you’re told. The almost total absence of meaningful intellectual discussion in many colleges and universities, along with the unprecedented corporate consolidation of the media, has put American society in a totalitarian ideological vice. Tenured liberal professors, or even professors that secretly harbor genuinely radical views, often think things privately that they would never dream of saying in class.

The American worker is more enslaved to his employer than ever before, but instead of rebelling against this enslavement, he feels resistance to be impossible or too dangerous to risk, or he embraces it as proof of his toughness and loyalty to his country.

Public school teachers that teach poor and disadvantaged students are under enormous pressures by authoritarian administrators to keep the level as low as possible and to not intellectually challenge their students. Those who resist are marginalized, harassed, and eventually forced out. This tyranny is blindly embraced in the name of multiculturalism, and enforced by morally bankrupt liberals who view students in troubled inner city schools as incapable of serious academic work.

The liberal adage “You have to work within the system” embodies the total moral spiritual, and intellectual collapse of the American people. The Democrats “work within the system,” and consequently we have a one party system. Tenured liberal professors have worked within the system, and have gotten so good at it that they have become the system, feeding Amy Tan and The House on Mango Street to poor students so as to keep them illiterate in the name of protecting diversity.

Expensive private colleges are dominated by almost total unanimity of thought in the liberal arts and social sciences, particularly in politics and economics. What are one’s chances of getting hired for a tenure-track economics position at a four-year university when you have written polemics attacking the impoverishment of third world countries by the World Bank and IMF? Almost zero. Is this our great freedom, our great liberty of thought? This overwhelming pressure to conform ideologically in the legal system, the media, and academia, and the relentless pressures to be as obsequious and sycophantic as possible at work, is a cancer that is slowly tearing at the heart of American civilization.

Blind obedience and brainwashing through Newspeak begin in school. The media, and other social pressures complete the process. The destruction of family and community life has made resistance at work extraordinarily difficult, because the loss of a decent job that can so easily come from speaking out against unconscionable abuses of power, puts the now atomized American in a void, a zone of nothingness, a banishment into purgatory.

Americans are constantly lying to themselves about the degree to which they have allowed themselves to become ideologically compromised at work. Even more disturbing than the collapse of the New Deal is the inherently reactionary nature of so many jobs in the twenty first century United States. It is almost absurd to talk about unions if you work for the military and are assisting in the manufacturing of new weapons. Jobs in the mass media and mainstream press are often equally as dubious. The education system, viewed by liberals from the 1960’s in such an innocent light, bears at least as much responsibility as the media in the lobotomizing of the American mind.

Instead of desperately trying to ward off a looming martial law, Americans are busy trying to get ahead at work. Fascism hasn’t come to America with rallies and bonfires but in the fight for the corner office.

Take a good look at what Americans will put up with at ten dollars an hour, and it is clear that unionization and solidarity have reached their nadir in American history.

The idea of not making much money, yet waking up in the morning and feeling good about oneself is a myth if you are a public school teacher whose hands are tied by anti-literacy administrators, or a defense attorney forced to betray clients and plea bargain innocent people into jail.

There is still time for the American worker to awake and take back his country. There is still time to resist, to stand up for freedom of expression and worker’s rights. For the elite are rapidly taking us to a place where it may soon no longer be possible to resist. Once that Rubicon is crossed, there will be naught but demons all around us, the bough will be broken, and constitutional democracy will drown in a sea of death and darkness.

David Penner has taught English and ESL at Kingsborough Community College, CUNY

Fear the Pentagon’s Malware Army

Kurt Nimmo
TruthNews
November 7, 2007

Killer robots loaded up with malware. That’s what a defense department advisory board is warning, according to the Register.

“The kill machines will use software largely written overseas, and it is feared that sinister forces might meddle with it in production, thus gaining control of the future mechanoid military,” writes Lewis Page.

Because the Pentagon wants the software on the cheap. It’s not said where production may go, but we can guess — India, or China, per se, but then, in the case of the latter, it really is not big deal as the commies already have an appreciable chunk of our military technology, due to spies and our “friends,” the Israelis. As for the former, the Chinese seem to be really adept at hacking our government and military computers, using mundane appearing websites as cover (see FBI probes for Chinese cyber spies).

Shopping on a budget, apparently because trillions are missing from the Pentagon—naw, this can’t be right, when the boys with scrambled eggs on their caps need more cash, they run to Congress with dire threats in tow—we are told the US Army’s Future Combat Systems program believes there is a “low to moderate risk that malicious code could be inserted… and exploited.”

Sure, I bet. And hundreds of attempts a day are made to penetrate my pedestrian firewall, many of them from China.

It seems there is also an “irresistible tendency to replace relatively secure special-purpose communications… with the general purpose Internet Protocol (IP) stack,” again to do things on the cheap, or so it seems. “If that doesn’t boil down to a teenager with a laptop seizing control of robot helicopter gunships, we don’t know what does,” writes Lewis. “We’ll say that again: ROBOT GUNSHIP HAX0R ARMY MENACE 2 SOCIETY. Aiee! Run! (It won’t be any use, but run anyway.)”

Call it the Hacker Robot Army, afflicted with malware and going up against whomever its master desires. “Still, things might be OK. Apparently the incredibly expensive new F-22 Raptor stealth superjet is pretty secure (it ‘appears to be at the high end… for secure software development’). So the Raptor finally has a clear and well-defined purpose: saving the taxpayers from the hacker robot army,” Lewis assuages.

Gosh, I feel better already.

Not.

Soros: Serious Economic Correction Ahead

Blacklisted News
November 6, 2007

Billionaire investor George Soros forecast on Monday that the US economy is “on the verge of a very serious economic correction” after decades of overspending.

“We have borrowed an awful lot of money and now the bill is coming to us,” he said during a lecture at the New York University, also adding that the war on terror “has thrown America out of the rails.”

Asked whether a recession was inevitable, Soros said: “I think we are definitely in for a slowdown that I think will be a bigger slowdown than (Fed Chairman Ben) Bernanke is seeing.”

Famous for his speculative attack on the Bank of England that made him more than $US1 billion, Soros declined to nominate which currencies are more vulnerable currently. He also declined to comment specifically on the dollar.

“I know exactly where the currencies are going to but I’m not going to tell that to you,” he told the audience.

Last week, investment guru Jim Rogers, who co-founded the Quantum Fund with Soros in the 1970s, recommended selling the dollar as well as US investment banks and US housing stocks.

Soros said that, for now, China is the “absolute winner” in economic terms, and will continue to see its economy soaring during the next few years.

“Now it is going through this fantastic transformation but in 10 years time I think you may well have a financial crisis in China,” he said.