Friday, January 18, 2008

New Hampshire ballot boxes found slit

Bev Harris
Black Box Voting.org
Friday January 18, 2008

No worries, say New Hampshire officials when cuts up to eight inches long are spotted in newly delivered ballot boxes. "The only seal that counts is the one on top."

Except the seal on top can be peeled off without leaving a trace, then reaffixed.

Black Box Voting has been doing a chain of custody exam for the New Hampshire Primary's recount. On Wednesday night, Election Defense Alliance's Sally Castleman mentioned a troubling observation: After following the ballots back to the ballot vault following Wednesday's recount, she had the opportunity to enter the ballot vault, and noticed what looked like cuts, or slits, in the side of many ballot boxes. New Hampshire officials assured us that these cuts, which slice through the tape, seals and box itself do not permit access to the uncounted ballots, pointing to a label on the boxtop which they call a seal.

But the "seal" can be removed, like a Post-it, and reaffixed. So it's not a seal all!

We wanted to know if the ballot boxes were slit while in the vault, in the transport van, or came from the towns with slits in them.

I confirmed this morning that many if not most of the boxes scheduled to be counted today had slits in them. I went out when a vanload of ballots arrived, and saw that they were slit at the time they arrived by van. Susan Pynchon and I drove to two nearby towns and watched as they handed over their ballot boxes to "Butch and Hoppy", the two men who drive around in the state in a van picking the ballots up. We observed as they loaded boxes of ballots into the van with no slits at all in them. We videotaped each of these up close. They arrived at the destination without slits. The label on the top was affixed, but in some cases was crumpled, or also damaged.

Of cource, the label affixed to the top can be removed and reattached without telltale signs.

No vault tonight

A significant departure from the normal chain of custody path occurred tonight. They decided not to use the vault to store the ballots.

Thursday, January 17, 2008

Dollar Weakens Against Euro

By RIVA FROYMOVICH Wall Street Journal
January 17, 2008 10:00 a.m.

The dollar softened versus the euro Thursday following the release of housing data. The buck is strengthening against the yen, as currency investors prepare for testimony by Federal Reserve Chairman Ben Bernanke before Congress.

The euro was at $1.4679 from $1.4657 late Wednesday. The dollar was at 107.40 yen from 107.54 yen. The U.K. pound was at $1.9722 from $1.9628, and the dollar was quoted at 1.1020 Swiss francs from 1.0993 francs.

On the day, the dollar is weaker against the euro, which slid markedly Wednesday. One factor is that European Central Bank governing council member Yves Mersch backtracked early Thursday from dovish comments published a day earlier. Another is a disappointing, although expected, financial earnings report from Merrill Lynch.

Against the yen, the dollar is also down, but is showing significant leaps Thursday morning as risk appetite begins to return after a stark unwind in anticipation of Bernanke's testimony before the House Budget Committee at 10 a.m. EST. He is expected to offer his support for an economic-stimulus package from Congress.

Home construction plunged 14.2% in December, tumbling to its lowest point in 16 years, after falling 7.9% in November, the Commerce Department said Thursday.

The big decline surprised Wall Street. The median forecast of economists surveyed by Dow Jones Newswires was a 5.0% drop.

But the effect on the dollar was mollified by the release of weekly jobless claims at the same time, which fell for the third straight week.

The fundamental near-term outlook for the dollar still looks bleak, say analysts, especially as U.S. interest rates are still expected to be cut relatively aggressively at the end of January -- no matter Wednesday's jump. That was about euro weakness, which is still a factor Thursday. ECB's Mr. Mersch, a usually hawkish official, acknowledged that euro-zone growth might have to be downgraded from 2.0% this year Wednesday. Markets saw this as evidence that the ECB may not be in rate hiking mode after all.

"His remarks fed what is arguably a growing perception that the ECB has remained hawkish in part to discourage overly zealous wage demands from labor unions, but that rates are unlikely to move higher," said Camilla Sutton, currency strategist at Scotia Capital in Toronto.

But early Thursday, Mr. Mersch clarified that the central bank did not discuss cutting interest rates at its Jan. 10 policy meeting, causing a slight reverse to the consequent dollar boost.

"The key question we must grapple with is how much is already priced into the currency market, and whether shifts in the interest rate outlook elsewhere might be more important," Ms. Sutton said.

Merrill Lynch matched Citigroup's massive fourth-quarter net loss Thursday, as the company recorded $14.6 billion in losses related to subprime mortgages and complex debt instruments, and write-down expectations as high as $15 billion.

The dollar's recent decline against the yen has incited chatter that Japan might intervene in its foreign exchange market if the buck drops lower to 100 yen.

A former top Japanese currency official said Thursday that even if the U.S. dollar falls to around 102 yen, government intervention is highly unlikely.

"Japan would need agreement from the U.S. for any intervention, but the U.S. wouldn't comply," said Eisuke Sakakibara, Japan's former vice finance minister for international affairs. "Japan can't intervene either verbally or physically. A U.S. Treasury document last year clearly states the U.S. is against even verbal intervention."

Merrill Lynched By Subprime

1.17.2008 forbes


Wall Street's pain parade continued this week, as Merrill Lynch reported $11.5 billion in additional write-downs for the fourth quarter. In the period, the investment bank recorded a loss of $9.8 billion, or $12.01 a share, versus a gain of $2.3 billion, or $2.41 a share, in the corresponding quarter last year.

That was far worse than analysts' expectations for a loss of $4.70 a share, on sales of $702.1 million.

The wide miss disappointed investors, pushing the stock down 4.3%, or $2.38, to $52.71, in pre-market trading. Calling the results "clearly unacceptable," newly minted Chief Executive John Thain said he was nevertheless encouraged by the company's recent steps to strengthen its cash position. "Over the last few weeks we have substantially strengthened the firm's liquidity and balance sheet," Thain said.

Over the last few months, Merrill Lynch (nyse: MER - news - people ), along with other firms on Wall Street, have been aggressively courting foreign, often state-controlled investment funds for cash infusions.

In January, Merrill raised $6.6 billion from the Kuwait Investment Authority, Japan's Mizuho Financial Group (nyse: MFG - news - people ), Korean Investment Corp., and other investors. The transaction is expected to be finalized within the next three weeks.

In December, Merrill also secured $6.2 billion in funding from Singapore's government-controlled Temasek Holdings and New York-based Davis Selected Advisors. (See: "Merrill's Merry Day" )

Earlier this week, Citigroup (nyse: C - news - people ) simultaneously annouced $18.1 billion in write-downs and a $12.5 billion in cash from a collection of foreign investors. (See: "Citigroup's Write-Down Disaster." )

As expected, Merrill Lynch's sore spot was its fixed income business, which reported a negative $15.2 billion in revenue for the quarter, largely due to write-downs on collateralized debt obligations and subprime mortgages. The company said the business environment became more challenging in November and December, which resulted in "in substantially reduced client flows and decreased trading opportunities."

The disappointing fourth quarter comes as Merrill Lynch struggles to find its footing, in the credit markets and within its own walls.

In October, Chief Executive Stanley O'Neal (nyse: SXE - news - people ) stepped down after shouldering the lion's share of the blame for the firm's failure to effectively manage risk. At the end of June, just as the subprime mortgage debacle began to unravel, the firm had $32 billion in exposure to collateralized debt obligations, a type of investment-grade security backed by assets like subprime mortgages.

Weeks before the investment bank's third-quarter earnings report, O'Neal tried to calm investors, predicting that the firm would likely face a 50 cent loss. When the actual numbers hit the wall, they were far worse. In the third quarter, the company had recorded more than $8 billion in write-downs and a loss of $2.85 a share. The large miss hastened the departure of O'Neal and paved the way for a new chief executive officer, John Thain, to take the reins in mid-November.

In O'Neal's aftermath, Thain, the former chief executive of NYSE Euronext (nyse: NYX - news - people ), is struggling to clean Merrill Lynch's house and expose all the ugly lumps now, while the markets still expect hefty write-downs. (See: "Investors Trust In Thain" )

The massive write-downs have continued to disappoint investors, but Merrill's exposure to risky collateralized debt obligations are at least narrowing. As of Dec. 31, the company's exposure to CDOs was $4.8 billion. For comparison, it recorded an exposure of $15.8 billion at the end of the third quarter. Its exposure to U.S. subprime and other residential mortgages also declined to $2.7 billion, at the end of the fourth quarter, versus an exposure of $5.7 billion, at the end of the third quarter.

Inflation negates 2007 wage increases

Posted on Wed, Jan. 16, 2008 10:15 PM Kansas City Star

Inflation last year wiped out real average weekly earnings gains for urban wage earners.

From December 2006 to December 2007, average weekly earnings rose by 3.4 percent, seasonally adjusted, the U.S. Bureau of Labor Statistics reported Wednesday.

Those average earnings gains, though, were reduced to a loss of 0.9 percent when the rise in the consumer price index was factored in, according to the bureau’s preliminary data.

The number of average weekly hours worked has been unchanged since July.

Before adjusting for inflation and seasonal changes, average weekly earnings in December 2007 were $605.96, compared with $578.67 a year earlier. Weekly earnings data are collected from payroll reports of private, non-farm establishments.

But consumer prices rose by 4.1 percent for all of 2007, up sharply from a 2.5 percent increase in 2006, the Labor Department said. Both energy and food prices jumped by the largest amount since 1990.

Core inflation, which excludes both energy and food, rose 2.4 percent last year, slightly lower than the 2.6 percent increase of 2006. It is the performance of core inflation that the Federal Reserve closely monitors.

Analysts said the slight drop in core inflation for 2007, plus various reports showing the economy is in the grips of a serious slowdown, will convince the central bank that a key interest rate it controls should be reduced by a half-point when Fed officials next meet on Jan. 30-31.

“Price pressures may be a little greater than the Fed would like, but with the economy hitting the skids, inflation is not so high to stand in the way of aggressive action,” said Joel Naroff, chief economist at Naroff Economic Advisers.

Separately, the Labor Department said Wednesday that Midwest consumers had a price break in December, driven by gasoline prices, which declined 3.7 percent in the month.

Overall, prices for Midwest consumers were 0.3 percent lower in December than in November.

Providing further evidence of a slowing economy, the Fed reported that output at the nation’s factories was flat in December, the worst showing since an outright decline of 0.5 percent in October.

In a separate report, the Fed said its latest beige book survey of economic conditions around the country showed the economy was losing momentum heading into 2008. Even so, seven of the 12 Fed regions, including the Kansas City district, did report slight increases in activity.

The Fed observed that “holiday sales were generally disappointing” and pointed to “further weakness in auto sales.”

The Star’s Diane Stafford and The Associated Press contributed to this report.

Digg Caught Red-Handed Censoring Ron Paul Stories

Self-proclaimed 'digital democracy' expunges articles after just a single bury
Paul Joseph Watson
Prison Planet
Thursday, January 17, 2008

UPDATE: After just one bury, this article too was deleted from Digg's upcoming category.

The self-proclaimed 'digital democracy' Digg.com has been caught red-handed artificially suppressing and censoring Ron Paul stories by expunging them from the website with just one bury, despite the fact that thousands of other Digg users are voting the stories up.

Digg allows users to vote stories up (digg them) or vote them down (bury them). The content of Digg's main page, which receives millions of readers a day, is decided upon this apparently democratic system.

For months allegations have been flying around concerning how stories about Ron Paul, which routinely receive well over a thousand diggs, rarely make it to the main page on Digg as a "popular" item.

Speculation centered around organized armies of Neo-Con bury brigades that flag each other when new Ron Paul stories emerge and bury them en masse to prevent wider exposure. The fact that hordes of trolls are stomping around Digg acting as electronic thought control police has been widely documented in the past. However, the popularity of Ron Paul is so mammoth that Digg has been forced to employ extra measures of censorship to block hundreds of stories about the Congressman from becoming viral.

It has now emerged that Digg has either directly implemented a policy to expunge Ron Paul stories from the website or that it has empowered "super-users" the influence to eliminate Paul stories with just one bury, even if the story has thousands of diggs from other users.

The revelation that Digg is artificially suppressing political content that it doesn't like actually appeared on an anti-Ron Paul website, TechCrunch, which has ridiculed Paul supporters in the past.

The writer, Duncan Riley, submitted his story about Paypal freezing the funds of Ron Paul supporters to Digg and tracked its progress via the Ajaxonomy Bury Recorder (ABR) service, a tool "that allows you to see the the number of buries on a Digg story by the time of each bury, the reason and at what stage in the voting process it was buried."

"Thinking that the Ron Paul story might get a few votes, I decided to run it in ABR through out the afternoon to see what might happen," writes Riley.


Riley's Ron Paul story was removed from Digg's upcoming section after receiving just one bury, despite the fact that it had received 43 diggs. CLICK FOR ENLARGEMENT.

"At exactly 43 votes the story received one bury for spam, and then it completely disappeared from the upcoming sidebar at Digg in its particular category. I ran a search for TechCrunch posts (newest via URL) on Digg to see whether it was there; nothing, clicked the include buried stories post: bingo, the post appeared in the list."

"There have been rumors and suggestions that certain users at Digg have “special powers” in the past, so what I saw could simply be one of those users who can alone bury stories submitted to Digg, at any stage of the voting process. Or (with tin foil hat on) Digg might have decided to ban Ron Paul. There’s zero way of knowing, and Digg never talks about its internal workings so we have no way of finding out which one it is, or even if it’s a combination of both. I wonder how long it will take for someone on Digg to bury this post?" he concludes.

The power of Digg to set the national news agenda is evidenced by the fact that it receives easily more traffic than the iconic Drudge Report and more visitors than any U.S. newspaper website.

Digg's ranking system is subject to the whim of a notorious "Bury Brigade" that obsessively votes down anti-establishment political content, leading many like Wired News to attack the concept that Digg is some kind of online democracy.

These new revelations prove that not only has Digg been hijacked by Neo-Con trolls, but it has also engaged in a deliberate censorship policy to suppress stories about Congressman Ron Paul's presidential campaign, proving itself equally corrupt as the corporate-owned U.S. media.

In it's preamble Digg claims, "You won’t find editors at Digg — we’re here to provide a place where people can collectively determine the value of content and we’re changing the way people consume information online."

The fact that Digg has been caught unfairly editing out Ron Paul material completely invalidates this statement.

We invite our readers to contact Digg via feedback@digg.com and politely inform them that political thought control is anti-American, dangerous to free speech and completely hypocritical for a website that bills itself as some kind of democratic voice for the people.

This is an absolute disgrace and we should do everything in our power to expose Digg.com as a mere tool of the political establishment.

USS Kitty Hawk "did not have approval to visit HK"

Reuters
Thursday January 17, 2008

The head of U.S. forces in the Pacific said on Thursday the USS Kitty Hawk, banned from entering Hong Kong in November, had not obtained final permission from China before setting off from its home base in Japan.

The aircraft carrier and its strike group were refused permission by Beijing to dock in Hong Kong for a long-planned Thanksgiving holiday visit in November, causing a bilateral row.

Asked if it had had approval to dock in Hong Kong, Admiral Timothy Keating said: "My understanding is it did not. It got close, the captain of the ship ... realised they didn't have permission so they turned around and started back home."

A bilateral agreement stipulates that the United States must apply for port visits at least 30 days in advance, while China should grant or reject such requests five days before arrival.

But on the morning of the Kitty Hawk's approach to Hong Kong, sources familiar with the situation said Beijing still hadn't given approval for entry, with the aircraft carrier strike group was forced to wait outside Hong Kong.

Beijing later said the ships could dock, but by then the aircraft carrier and its strike group were heading back to Japan.

Keating, who has just concluded a visit to Beijing, said he was upbeat the situation wouldn't be repeated, with a pending request for another ship, the USS Blue Ridge, to visit Hong Kong in the coming weeks.

"Our Chinese hosts didn't say no to the pending request. I'm hopeful, I'm optimistic, I bet that our request will be approved. I don't have any inside information however," Keating told a news conference.

But he criticized Beijing for refusing a distress port visit to Hong Kong in November by two minesweepers that were low on fuel and facing bad weather, saying it was a "serious concern".

Full article here.

Coming soon, an X-ray vision gun

Ben Farmer
London Telegraph
Thursday January 17, 2008

The superhero power to see through walls will soon be within the grasp of ordinary mortals, thanks to a new hand-held X-ray scanner.

Inventors hope the gadget could revolutionise police work and Customs searches by allowing officers to seek out contraband, weapons, bombs or hidden people.

The LEXID device sends out low-level X-rays which are collected in a lens based on the design of a lobster's eye.

Rick Shie, senior vice-president of its American inventors, Physical Optics Corporation, said that lobsters' eyes, which are able to see in deep, murky water, use thousands of tiny squares to focus by reflection rather than the bending or refraction of light like human eyes.

Mr Shie said: "The LEXID works by emitting a low-level X-ray and then the lobster eye interprets what is returned and the image is produced on a screen.

"We are still in the research stage but have conducted successful trials and the government is keen to test it. "It can detect bombs, contraband or people and will show up anything within a couple of metres."

America’s Department of Homeland Security is already understood to be interested in the device for use in its war on terror.

While the images produced by the scanner are not crystal-clear, they are sharp enough to reveal a cache of weapons or parts of a bomb.

Full article here.

Ron Paul Ad - US National Debt

Youtube
Thursday January 17, 2008

A funny Ron Paul commercial that pokes fun at President Bush for contributing to the Nine trillion Dollar US National debt, or at least not doing anything to reduce it.

Gates’s Comments on NATO’s Afghan Force Anger Dutch

THE HAGUE (Agence France-Presse / New York Times) — The Dutch government has summoned the American ambassador here to explain comments by Defense Secretary Robert M. Gates, who criticized NATO forces in southern Afghanistan in a news report published Wednesday.

Mr. Gates told The Los Angeles Times that international troops deployed in the south — mainly from Britain, Canada and the Netherlands — were not properly trained to fight an insurgency.

“I’m worried we have some military forces that don’t know how to do counterinsurgency operations,” Mr. Gates told The Los Angeles Times. “Most of the European forces, NATO forces, are not trained in counterinsurgency.”

The Dutch defense secretary, Eimert van Middelkoop, told reporters that Dutch troops had acted with experience and professionalism and said, “We do not recognize ourselves in the image conjured” by Mr. Gates.

Nearly 1,665 Dutch soldiers are deployed in Oruzgan Province in southern Afghanistan as part of the NATO-led International Security Assistance Force.

Speaking from Oruzgan, the contingent’s commander, Col. Nico Geerts, also criticized Mr. Gates’s comments in a radio interview, saying Dutch soldiers were “doing an excellent job.”

In Washington, a State Department spokesman, Sean McCormack, confirmed that the ambassador was called in to clarify Mr. Gates’s remarks.

Mr. McCormack said Mr. Gates “was not directing his comments at any one country in particular, but at the alliance as a whole, which includes us.”

The ambassador also acknowledged the contribution of the Dutch armed forces and the “sacrifices” of the Dutch people in sending troops to Afghanistan, Mr. McCormack said.

Mr. McCormack said the meeting with the ambassador was not a “finger wagging” session. “It was the defense minister looking for a clarification of the comments,” he said.

Mr. Gates made his remarks just after the Bush administration decided to send 3,200 more marines to Afghanistan, as NATO allies struggle to provide 7,500 more troops requested by commanders on the ground.

The commanders, backed by the United States, have regularly called for more troops and equipment in their fight against a resilient Taliban. The force grew to about 42,000 in December 2007 from around 33,000 in January 2007.

NATO is engaged in its most ambitious mission yet, trying to spread the rule of President Hamid Karzai’s weak central government into more lawless parts of Afghanistan. But the international forces have struggled to defeat the insurgency, particularly in the south near the mountainous border with Pakistan.

NATO’s secretary general, Jaap de Hoop Scheffer, a Dutchman, also defended allied troops fighting the Taliban-led insurgency after Mr. Gates’s criticism, saying he had “the greatest respect for what the allies are doing in the west, the north, the east and the south.”

Fourteen Dutch soldiers have been killed in Afghanistan, either accidentally or in combat.

Dispute Deepens for Russia and Britain

Published: January 17, 2008 new york times

MOSCOW — A British cultural organization at the center of a dispute between the Kremlin and Britain closed its office in St. Petersburg on Wednesday under pressure from Russia’s intelligence service, which summoned the organization’s entire Russian staff for questioning, Russian and British officials said.

The closing, which a British official said was temporary, occurred the morning after the organization’s director, Stephen Kinnock, was stopped in front of his home by the Russian authorities and accused of drunken driving. The British government said he had been falsely accused.

“First thing to say, right up front: he was not drunk,” said James Barbour, a spokesman for the British Embassy here, who suggested that the Russian allegations, which were widely circulated by the Russian news media, were a pretext used to intensify an already bitter dispute.

Mr. Kinnock, whose status as an accredited diplomat gives him legal protections, was not arrested or charged with any crime. But the public allegations against him, and the questioning of the staff of the British Council, which is the official cultural arm of the British government, were condemned in London, where David Miliband, Britain’s foreign secretary, accused Russia of “intimidation.”

Mr. Miliband, speaking to reporters, said the actions were “completely unacceptable.” The Russian ambassador in London, Yury V. Fedotov, was summoned to meet a senior British official. “We would like to hear where the Russians plan to take it from here,” a British official said, speaking on the condition of anonymity under civil service rules. For his part, Mr. Miliband insisted that all of the council’s activities complied with both the law and diplomatic convention.

“The work of the British Council in Russia is completely legal under Russian and international law, and we think it is very important to defend the integrity of our officials in the work that they are doing,” Mr. Miliband said. The episode has acquired a high profile in London because Mr. Kinnock is a son of Neil Kinnock, a former Labor Party leader and a member of the House of Lords. The public stature of the Kinnocks has increased pressure on the London authorities to take a tough line against Russia. A British official said the government in London regarded Russia’s actions as “perplexing.”

The new moves against the British Council, and the public use of the Russian intelligence service against its staff, were the latest twist in a downward spiral in relations since the death of Alexander V. Litvinenko, a former K.G.B. officer, in London in November 2006.

Mr. Litvinenko died after ingesting a highly toxic radioactive isotope, polonium 210. Scotland Yard has accused another former K.G.B. officer, Andrei Lugovoi, of murdering him. Russia has refused to extradite him to stand trial.

Last July, Britain expelled four Russian officials from the Russian Embassy in London to register its annoyance at President Vladimir V. Putin’s refusal to hand over Mr. Lugovoi. The Kremlin reciprocated by ordering four British officials to leave Moscow.

As part of the dispute, late last year Russia ordered the British Council, which has offices in St. Petersburg, Yekaterinburg and Moscow, to close all but its Moscow office by Jan. 1. A standoff ensued when Britain refused, saying that all three offices were legal under diplomatic convention and a previous agreement with the Kremlin.

When the holiday vacation period ended Monday, all three offices of the British Council reopened, and the British ambassador here, Anthony Brenton, publicly defied the Kremlin, telling journalists assembled at Russia’s Foreign Ministry that the council intended to continue its operations despite the Russian position.

Russia’s Federal Security Service, or F.S.B., which is the principal successor to the Soviet K.G.B. and was formerly led by Mr. Putin, accused Britain on Wednesday of using Russian citizens at a banned activity, and suggested that questioning the council’s employees was necessary to protect them.

“In order to safeguard Russian citizens from being used as tools in the Britons’ provocative games, the Federal Security Service organs have started explanatory work among the Russian citizens working for this organization,” the F.S.B. said in a statement posted on its Web site.

Britain showed no sign of backing down and said the council planned to reopen the office in St. Petersburg on Thursday.

The office was closed on Wednesday “simply on the basis that the staff would be busy with F.S.B. for the day,” Mr. Barbour, the embassy spokesman, said. He added that the British Council offices in Moscow and Yekaterinburg remained open.

The strained relations are in marked contrast to a short-lived honeymoon between Britain and Russia when Mr. Putin first took office eight years ago.

Since then Britain has gradually withdrawn the warm embrace offered by Tony Blair, the prime minister at the time. With the inauguration of a new government under Prime Minister Gordon Brown, Britain has seemed to take a harder line.

In an earlier statement, Mr. Miliband told Parliament on Tuesday that Russian “threats” against British Council personnel “can only make matters worse. It is not in the interests of either the U.K. or Russia for flourishing cultural, educational and scientific links to be held hostage to unrelated issues in this way.”

Apart from the Litvinenko dispute, Russia has also expressed increasing annoyance at Britain’s refusal to hand over two foes of the Kremlin, the tycoon Boris Berezovsky and the Chechen leader Akhmed Zakayev, who have been granted asylum by the British government.

Wednesday, January 16, 2008

Ex-lawmaker charged as terrorist conspirator

Former congressman accused of supporting fundraising ring
The Associated Press
updated 4:18 p.m. ET, Wed., Jan. 16, 2008

WASHINGTON - A former U.S. congressman and delegate to the United Nations was indicted Wednesday, accused of being part of a terrorist fundraising ring that allegedly sent more than $130,000 to an al-Qaida and Taliban supporter who has threatened U.S. and international troops in Afghanistan.

The former Republican congressman from Michigan, Mark Deli Siljander, was charged with money laundering, conspiracy and obstructing justice for allegedly lying about lobbying senators on behalf of an Islamic charity that authorities said was secretly sending funds to terrorists.

A 42-count indictment accuses the Islamic American Relief Agency of paying Siljander $50,000 for the lobbying — money that turned out to be stolen from the U.S. Agency for International Development.

Siljander, who served four years in the U.S. House of Representatives, was appointed by President Ronald Reagan to serve as a U.S. delegate to the United Nations for one year in 1987.

He could not immediately be reached for comment Wednesday, and his attorney in Kansas City, JR Hobbs, had no immediate comment.

Case against Islamic charity
The charges are part of a long-running case against the charity, which was designated by the Treasury Department in 2004 as a suspected fundraiser for terrorists.

In the indictment, the government alleges that the charity employed a man who had served as a fundraising aide to Osama bin Laden.

The indictment charges the charity with sending approximately $130,000 to help Gulbuddin Hekmatyar, whom the United States has designated as a global terrorist. The money, sent to bank accounts in Peshawar, Pakistan in 2003 and 2004, was masked as donations to an orphanage located in buildings that Hekmatyar owned.

Authorities described Hekmatyar as an Afghan mujahedeen leader who has participated in and supported terrorist acts by al-Qaida and the Taliban. The Justice Department said Hekmatyar "has vowed to engage in a holy war against the United States and international troops in Afghanistan."

The charges "paints a troubling picture of an American charity organization that engaged in transactions for the benefit of terrorists and conspired with a former United States congressman to convert stolen federal funds into payments for his advocacy," said Assistant Attorney General Kenneth Wainstein.

Siljander founded Washington-area consulting group Global Strategies, Inc. after leaving the government.

URL: http://www.msnbc.msn.com/id/22686544/

Our Rulers Are Compiling Digital Evidence Against Us

Kurt Nimmo
Truth News
January 15, 2008

It’s a fantastic activism tool: impromptu groups such as We Are Change confront a former president or a corporate media anchor and within a few hours a video appears on the internet for millions of people to see.

Be forewarned, though, because soon enough all of this will be used against you for crimes against the state, thanks to National Intelligence director Mike McConnell.

“If you’re worried about online privacy, try this on for size,” writes p2pnet.net. “US intelligence agencies may soon have access to any and all emails, file transfers or web searches.”

“The proposals from National Intelligence Director Mike McConnell, which have entered into a draft of US Cyber-Security Policy, would legitimize data trawling on a scale that would make the current controversy about warrantless wiretapping seem like much ado about nothing,” the Register explains. “Intelligence agencies have long angled for this kind of surveillance ability. The infrastructure and computing power needed to tap into Americans’ email and web search history may already exist. However a change of president, to say nothing of a Democratic Congress, may represent a block on such ambitions.”

Oh, road apples. It will roll through Congress like a run-away freight train and land on whatever selected president’s desk for signature and enactment, that is unless the next president is Ron Paul.

Of course, this formality will simply codify what is already going on, as the government has snooped our communications for decades now. Lawrence Wright, writing for the New Yorker, suggests “that this kind of monitoring is already going on. He spoke to an AT& T employee, Mark Klein, who claimed that he installed data switching systems in the company’s exchange that copied all internet traffic to the National Security Agency.” Klein “claimed that he installed data switching systems” for this very purpose.

If you think this effort is to track down a dead and buried al-Qaeda leader and his motley crew of cave-dwelling Muslims, I have a bridge to sell you in the Sonoran Desert.

It’s was designed and deployed to keep tabs on you, so if you don’t want to be inserted in the government’s terrorist database, you best stay away from the We Are Change website, Infowars, and the site where you are now reading this, to name but three. Chances are you’re in calmer, safer, and less shark infested waters surfing porno websites.

In the old days, in East Germany, the Stasi used civilian informants to snoop and infiltrate all aspects of life. It is said one in every seven East Germans worked for the secret police. It was highly effective in snuffing out dissent.

But all of that pales in comparison with the high-tech snoop system now in place here in the United States. If you use a telephone, send email, or cruise the web you have a virtual electronic Stasi informer looking over your shoulder at all times. Not even Orwell imagined such an effective and fearsome system for monitoring citizens.

For now, you will be allowed to read those articles on Prison Planet. But keep in mind that a massive database housed on a networked series of super-duper liquid nitrogen cooled Cray computers somewhere in the basement of the NSA, CIA, or the Pentagon — or all three and then some — are actively cataloging every URL you visit, every email you send urging a coworker or relative to investigate the 9/11 inside job, every phone call you make regardless of content. Moments after I post this on Truth News, it will be tucked away for future reference, part of an electronic dossier that may be used against me at any moment.

In the not too distant future, our Volksgerichtshof, or People’s Court, will likely parallel in ominous ways the one created by Hitler and the Nazis to convict citizens of “political offenses” and high treason against the fascist state. Such a kangaroo court is but one “terrorist event” away from convening. Our domestic Gitmos in the guise of FEMA camps await.

In the meantime, our rulers are quietly assembling the evidence against you.

If you want to be safe, you may want to click off this page now and surf over to PornoTube.

Report: Chinese ships confronted Kitty Hawk

Kyodo News
Wednesday January 16, 2008

TAIPEI — A Chinese attack submarine and destroyer shadowed U.S. warships in November in the Taiwan Strait, sparking a 28-hour standoff that brought the group to a battle-ready halt in the tense waters, a report in a Taiwan daily said Tuesday.

The confrontation occurred as the Navy aircraft carrier Kitty Hawk and other ships in its battle group were heading back to Japan following China’s sudden cancellation of a long-scheduled holiday port call in Hong Kong, the China Times said, citing U.S. military sources.

The carrier strike group encountered Chinese destroyer Shenzhen and a Song-class sub in the strait on Nov. 23, causing the group to halt and ready for battle, as the Chinese vessels also stopped amid the 28-hour confrontation, the Chinese-language daily reported.

The Kitty Hawk battle group had planned to pass the Thanksgiving holiday in Hong Kong as it had done in previous years, but China refused it entry without giving a reason.

By the time China reversed its decision, the U.S. ships had already turned around and headed for their home port in Japan. China later told the U.S. that its earlier refusal was a “misunderstanding.”

But that incident came on the heels of China’s refusal of safe harbor in Hong Kong for two Navy minesweepers seeking refuge from a brewing storm. Due to that refusal, the ships had to get refueled at sea so they could return to their home port in Sasebo, Japan.

The two incidents have ruffled feathers in Washington.

Adm. Timothy Keating, who heads the U.S. Pacific Command, is in Beijing this week to discuss what he has called China’s “perplexing” refusals, its worrisome weapons programs and U.S.-China military ties.

He told reporters Tuesday that U.S. warships will cross through the Taiwan Strait whenever they choose to.

“We don’t need China’s permission to go through the Taiwan Strait,” Keating said, stressing that it is international waters. “We will exercise our free right of passage whenever and wherever we choose.”

China has expressed its “grave concern” to the U.S. over the Kitty Hawk’s transit through the Taiwan Strait.

Beijing claims Taiwan as its own, vowing to attack the self-ruled island if it moves to formalize its de facto independence.

The U.S., Taiwan’s chief security benefactor, is legally obligated to help defend the island in the face of Chinese saber-rattling.

In 2006, a Chinese attack sub stalked the Kitty Hawk without being detected until it surfaced within firing range of the group.

Last November’s incident, however, could have been unintentional as the Shenzhen was also headed to Tokyo for an historic port call there, just as the Kitty Hawk was denied Hong Kong entry.

Destroyers are known to travel with a submarine escort.

The confrontation ended without incident as all vessels continued on course toward Japan by Nov. 24.

Microsoft is developing Big Brother-style software capable of monitoring workers' competence and productivity

UK Daily Mail
Wednesday January 16, 2008

Microsoft is developing Big Brother-style software capable of remotely monitoring a worker's productivity, competence and physical wellbeing, it was revealed today.

A patent application has been filed by the company for a computer system that links workers to their computers via wireless sensors that measure their metabolism.

The system would allow managers to monitor their employees' performance by measuring their body temperature, heart rate, movement, facial expression and blood pressure.

But unions are concerned that employees could be sacked on the basis of the computer's assessment of their physiological state.

It is understood that this is the first time that a company has proposed to devlop this big-brother-style software for mainstream workplaces.

Similar monitoring technology has previously been limited to pilots, firefighters and Nasa astronauts.

Microsoft has submitted a patent application in the US for a "unique monitoring system" that could link workers to their computers.

The application states that wireless sensors could read heart rate, brain signals, respiration rate, body temperature movement, facial movements, facial expressions and blood pressure.

The system could also "automatically detect frustration or stress in the user" and "offer and provide assistance accordingly."

Full article here.

Ron Paul Beats Fred and Rudy in Michigan

DigitalBob
Nolan Chart
Wednesday January 16, 2008

Watching the Michigan returns come in on CNN and Fox News, it was clear that Ron Paul wasn't going to get more than about 7% and finish in fourth placed after Romney, McCain, and Huckabee. For a candidate that wasn't worthy to get an invitation to the Fox News debate before the New Hampshire primary, he finished ahead of two other candidates who did.

In a previous article, I mentioned that there is a Ron Paul Mendoza Line, where a candidate must at least beat Ron Paul, or should consider getting out. As of tonight, Rudy Giuliani, Fred Thompson, and Duncan Hunter have all fallen below that line. Unlike Paul, with his fanatical grassroots supporters, these candidates do not have backers who will raise millions of dollars in a single day to keep a second-place or worse finish going. Even Mike Huckabee ought to be bleeding at the edges of his campaign coffers by now. We'll know at the end of the month when the FEC reports come out. Paul and Romney are the only ones with the cash to keep going beyond Feb 5--even if they don't win another state by then.

Before Super Tuesday, there are just a few states to go. These candidates need to win one by then, or may have to go home.

Thompson is probably putting all his eggs in a South Carolina basket. He has stiff competition from Huckabee. It will be a battle between who is most Southern. Will it be the preacher-governor from Arkansas or the attorney-actor-Senator from Tennessee? At USAElectionPolls.com, John McCain has been surging there lately. But Huckabee has polled ahead of Thompson consistently since November.

Giuliani has two states where he can make a last stand: Nevada and Florida. Giuliani pulled his office out of Michigan in a frugal move when it became clear that he couldn't win the state. It may be paying off. In Florida, he's in a four-way tie with the top three finishers from Michigan. But Thompson and Paul aren't far behind. He had Nevada to himself, until McCain's recent surge.

Although Duncan Hunter is still on ballots, he really needs to decide where to make a graceful exit. He has to figure out when to write the last campaign paycheck or apply for matching funds. There are just so many stops he can make on frequent flyer miles. He made his point with building the fence in San Diego. He's still pushing his trade message, which the other candidates need to incorporate. "Mirror Trade" seems much more fair than the current system. He might want to negotiate a cabinet position for an endorsement.

So where does that put Ron Paul? He needs to make some serious staff changes. He's got to get his message out to convert "normal" voters to his point of view. Fast. His rabid internet minions will follow him up to and through the gates of hell--even the atheists. He's got to get beyond some of us economic nerds who let out a war whoop every time he advocates getting rid of the Federal Reserve and the IRS. Huckabee's Michigan concession speech last night came right out of Ron Paul's press releases. When the candidates want to look economically conservative, they cherry pick Paul's platform. Maybe James Carville is available for a consult? His recent free advice seems spot-on with the three GOP winners so far. Ron Paul's got to place at least third in a state or two before Feb. 5.

We'll see who's left standing Feb 6. It will be a long fight to the convention by those who can win a few states on Super Tuesday, and have some cash on hand.

Diebold Machine Rejects Ron Paul Votes In Michigan

Ron Paul War Room
Wednesday January 16, 2008

From Ron Paul Supporter Michigan below

Voter #1 Genoa Township, Michigan Precinct 3. Voting problems?
Posted January 15th, 2008 by LettenYouKnow
First observation…
-Diebold

I was the first voter, I circled in Ron Paul and put my ballot into the machine. Spit it right back out and said INVALID BALLOT.

Second guy gives it a shot. INVALID BALLOT.

I begin arguing with the lady running the precinct about computer voting and people voting. This lady actually says in a room full of people that Computers are better at counting ballots than people, cause people make mistakes. who makes computers?

So to finish it up, she calls the township. she says I can keep my ballot in a secret compartment and they will put it through later once its fixed.

So they call her back. She gets off the phone. She says the manufacturer says there is a problem with a memory card. Someone from the manufacturer will be there with a new memory card soon.

It doesn’t help that I just watched a darn documentary about DIEBOLD and MEMORY CARDS.

I immediately left and drive to the township office to voice my complaints. They must still be sleeping.

Inflation Rate Is Worst in 17 Years

WASHINGTON (AP) — Higher costs for energy and food last year pushed inflation up by the largest amount in 17 years, even though prices generally remained tame outside of those two areas. Meanwhile, industrial output was flat in December, more evidence of a significant slowdown in the economy.

Consumer prices rose by 4.1 percent for all of 2007, up sharply from a 2.5 percent increase in 2006, the Labor Department said Wednesday. Consumers felt the pain when they filled up their gas tanks or shopped for groceries. Prices for both energy and food shot up by the largest amount since 1990.

In a second report, the Federal Reserve said that output at the nation's factories, mines and utilities showed no growth in December, adding to a string of weak economic reports showing that the economy was slowing at the end of last year.

The unchanged output in December was the poorest showing since industrial output actually fell by 0.5 percent in October. Output had been up by 0.3 percent in November.

The December weakness reflected flat output at U.S. factories, a tiny 0.1 percent rise in the mining industry and a 0.2 percent drop at the nation's utilities.

The Consumer Price Index rose by 0.3 percent in December, slower than the 0.8 percent in November, as food costs were flat for the month and energy prices rose by 0.9 percent after an even bigger 5.7 percent jump in November.

Outside of food and energy, inflation rose a more moderate 0.2 percent in December. This measure of core inflation rose by 2.4 percent for all of 2007, down slightly from a 2.6 percent increase in 2006.

The Federal Reserve is closely watching to see whether the jump in food and energy becomes more widespread and starts pushing core inflation higher.

Analysts said that with core prices generally remaining well-behaved, it will give the central bank the leeway to cut interest rates further to battle a serious economic slowdown triggered by a steep slump in housing and a spreading credit crisis.

The expectation is that the Fed will cut a key rate by a half-point when officials meet at the end of this month. Federal Reserve Chairman Ben Bernanke raised hopes for further rate cuts in a speech last week when he said that economic risks had grown significantly in recent weeks.

The rising risk of a recession has prompted politicians to consider stimulus packages to give the economy a jump-start to either prevent a recession or at least mitigate its fallout. President Bush has said he may unveil a plan around his Jan. 28 State of the Union address. Democrats in Congress and presidential candidates in both parties are putting forward their own plans.

The CPI report showed that the 4.1 percent increase in overall prices was the biggest since a 6.1 percent jump in prices in 1990.

Energy costs rose by 17.4 percent this past year while food costs rose by 4.9 percent. Both were the biggest increases since 1990. Gasoline prices were up 29.6 percent, the biggest increase since they soared by 30.1 percent in 1999.

The 2.4 percent rise in prices outside of food and energy was the smallest since a 2.2 percent rise in 2005.

Clothing costs and the price of new cars actually fell for the year, both dropping by 0.3 percent, while airline fares, reflecting higher fuel costs, were up 10.6 percent and medical care, always one of the leading areas of price increases, rose by 5.2 percent for 2007.

Workers' wages failed to keep up with the higher inflation. Average weekly earnings, after adjusting for inflation, dropped by 0.9 percent in 2007, the biggest setback since a 1.5 percent fall in 2005.

Heads up: Federal Reserve auctions $30 billion in funds to banks

Tue, Jan. 15, 2008 10:15 PM The Associated Press

The Federal Reserve, working to combat the credit crisis, auctioned $30 billion in funds to commercial banks at an interest rate of 3.95 percent. It was the third in a series of auctions the Fed began last month as a way to provide cash-strapped banks the reserves they need. The 3.95 percent interest rate was the lowest of any of the three auctions so far.

Not liable

The Supreme Court ruled Tuesday against investors who sue businesses that help manipulate stock prices of publicly traded companies. The 5-3 decision gave a measure of protection from securities lawsuits to suppliers, banks, accountants and law firms that do business with corporations engaging in securities fraud.

Applied pain

Applied Materials Inc., a big supplier of computer-chip-making equipment, is jettisoning 1,000 jobs, a 7 percent cutback that suggests some manufacturers are hunkering down for a recession. The cuts announced Tuesday are Applied Materials’ biggest retrenchment since November 2002.

Figures confirm retailers had little holiday cheer

Report calls it worst Christmas season in 5 years

WASHINGTON — Consumer spending, the critical bulwark that has kept the country out of recession, is showing signs of cracking. Retail sales plunged by 0.4 percent last month as consumers handed retailers their worst Christmas in five years. Consumers have been battered by a sinking housing market, rising unemployment and the credit crunch.

The Commerce Department's sales report Tuesday was just the latest in a string of weaker-than-expected numbers that have economists worried that the current economic expansion, now in its seventh year, is faltering.

Analysts said the worry is that all the problems weighing on the economy could prompt consumers — who account for two-thirds of economic activity — to sharply limit or even stop shopping. Already, consumer confidence has slipped significantly amid the oil price spiral and the continuing housing slump. At the same time, some of the nation's biggest financial institutions have reported billions of dollars in losses stemming from a meltdown in the mortgage market.

Former Federal Reserve Chairman Alan Greenspan said the country may already be in a downturn.

"The symptoms are clearly there," he said in a Wall Street Journal interview. "Recessions don't happen smoothly. They are usually signaled by a discontinuity in the marketplace, and the data of recent weeks could very well be characterized in that manner."

Stock prices, one of the leading indicators used to judge the course of the economy, continued their 2008 swoon.

9-month low for Dow

The Dow Jones industrial average fell 277.04 points to close at 12,501.11, the lowest close in nine months. Investors were rattled by an announcement from Citigroup that it had sustained a nearly $10 billion loss in the fourth quarter, reflecting in part the mortgage market.

Broader stock indicators also lost ground. The Standard & Poor's 500 index dropped 35.30 to 1,380.95, and the Nasdaq composite index lost 60.71, closing at 2,417.59.

In other news Tuesday, the Labor Department said wholesale inflation, which had shot up in November by 3.2 percent, the largest amount in 34 years, dipped by 0.1 percent in December. That reflected a drop in energy costs at the time. However, for all of 2007, wholesale prices rose by 6.3 percent, the biggest annual increase in 26 years.

Analysts said the dip in wholesale prices for December, if followed by a benign report today on consumer prices, should give the Federal Reserve the leeway it needs to more aggressively attack the slowdown with interest rate cuts.

Federal Reserve Chairman Ben Bernanke last week sent a strong signal that the central bank is more worried at the moment about weak growth than inflation, prompting markets to believe the Fed will cut a key interest rate by a half-point at the end of this month.

Favoring Democrats' plans

Also Tuesday, the Congressional Budget Office said economic stimulus proposals favored by Democrats, including tax rebates, extended unemployment benefits and a temporary increase in food stamps, are cost-effective ways for Congress to try to lift the economy.

At the same time, the office said, some options floated by Republicans such as extending President Bush's tax cuts, cutting corporate tax rates and giving businesses new incentives to invest may be less cost-effective in the short term.

The nonpartisan Congressional Budget Office echoed the views of many economists who say the most effective way to stimulate the economy is to provide money — through tax cuts or direct payments such as food stamps — to people most likely to spend it quickly.

JPMorgan Fourth-Quarter Earnings Fall, Miss Estimates (Update4)

By Elizabeth Hester

Jan. 16 (Bloomberg) -- JPMorgan Chase & Co., the third- biggest U.S. bank, said profit dropped 34 percent on subprime- mortgage writedowns and higher provisions for future loan defaults.

Fourth-quarter net income declined to $2.97 billion, or 86 cents a share, from $4.53 billion, or $1.26, a year earlier, the New York-based bank said today in a statement. JPMorgan rose as much as 6.8 percent in New York trading as the $1.3 billion writedown was smaller than analysts estimated.

The profit decline, the first since Jamie Dimon became chief executive officer in 2005, came as trading revenue fell and JPMorgan prepared for what it said may be a substantial weakening in the U.S. economy. The company added $2.3 billion to credit reserves, bringing the total to $10 billion. Citigroup Inc., the biggest U.S. bank, said yesterday it added $5.2 billion to cover U.S. loan losses and took an $18.1 billion writedown.

``We remain extremely cautious as we enter 2008,'' Dimon, 51, said in the statement. ``If the economy weakens substantially from here -- for which, as a company, we need to be prepared --it will negatively affect business volumes and drive credit costs higher.''

JPMorgan gained $1.68, or 4.3 percent, to $40.85 in composite trading on the New York Stock Exchange at 10:28 a.m.

``Their diversified business model really continues to separate JPMorgan from a lot of their peers,'' said William Fitzpatrick, an analyst at Racine, Wisconsin-based Optique Capital Management, which oversees $1.7 billion including JPMorgan shares.

Revenue Increase

Revenue climbed 7 percent to $17.4 billion, compared with the average estimate of $17.2 billion in the Bloomberg survey. Profit fell short of the 92-cent average estimate of 17 analysts surveyed by Bloomberg. Last year's fourth-quarter earnings included a one-time gain of $622 million.

Net income at the investment-banking division tumbled 88 percent to $124 million in the fourth quarter, as credit-market turmoil reduced revenue from debt underwriting 39 percent, to $467 million. Fixed-income revenue tumbled 70 percent because of the writedown, to $615 million, and ``weaker trading results'' contributed to a 40 percent drop in equity market revenue, which fell to $578 million.

The retail bank's profit climbed 5 percent to $752 million, driven by increases in mortgage banking. Those gains were tempered by declines in the home-equity and auto-loan businesses. Charge-offs on home-equity loans totaled $248 million. Profit from auto loans was $49 million, a 25 percent drop from a year earlier.

Credit Costs

Dimon said on a conference call with analysts that he isn't predicting a U.S. recession, though credit costs will increase as the economy weakens.

JPMorgan earned 15 percent less from its card services business, as its provision for future losses rose 40 percent to $1.79 billion.

Return on equity from continuing operations, a gauge of how effectively the company reinvests earnings, was 10 percent, compared with 14 percent a year earlier.

JPMorgan lost 18 percent of its market value in the past 12 months, compared with 50 percent at New York-based Citigroup and 29 percent at Charlotte, North Carolina-based Bank of America Corp.

JPMorgan's Tier 1 capital ratio, which regulators monitor to assess banks' ability to withstand loan losses, remained unchanged from the third quarter at 8.4 percent.

Rating Downgrade

Deutsche Bank AG analyst Michael Mayo reduced his rating on JPMorgan to ``hold'' from ``buy'' yesterday ``due to accelerating problems in U.S. consumer banking.'' Losses from credit cards and mortgages are increasing as the global economy slows. Citigroup said yesterday its record $9.83 billion loss was due in part to an increase in provisions for losses on auto and credit-card loans.

``We feel that JPMorgan cannot escape tougher external conditions,'' Mayo wrote in his research note.

Richard Bove, an analyst at Punk Ziegel & Co. in Lutz, Florida, said JPMorgan may capitalize on its relative success in protecting its capital by purchasing another bank. Bove pointed to Seattle-based Washington Mutual Inc., the biggest savings and loan, as one possibility.

Dimon said on the conference call that he's ``open-minded'' about the possibility of acquiring other banks, and the current market environment makes such a takeover more likely.

Leveraged Buyouts

JPMorgan arranged $170 billion of loans used to finance leveraged buyouts in the U.S. last year, more than any bank and representing 16 percent of the market, according to data compiled by Bloomberg. The company was also the largest underwriter of U.S. high-yield corporate debt, with $20 billion in 2007.

The fourth quarter may be the worst earnings period for the financial industry since the Great Depression. Analysts estimate Merrill Lynch & Co., the biggest U.S. brokerage, will report a record loss tomorrow of more than $3 billion after writing down the value of mortgage-related securities. Bank of America, the second-largest U.S. bank by assets after Citigroup, may report its biggest profit decline since its formation in 1998 from the merger of BankAmerica and NationsBank.

To contact the reporter on this story: Elizabeth Hester in New York at ehester@bloomberg.net .