Wednesday, June 06, 2007

BBC NEWS | Asia-Pacific | Costa Rica forges new China ties

BBC NEWS | Asia-Pacific | Costa Rica forges new China ties

Costa Rica forges new China ties
Costa Rica's President Oscar Arias has announced that his country has broken diplomatic ties with Taiwan after 60 years and formed relations with China.

Mr Arias said Costa Rica needed to develop closer ties with China in order to attract foreign investment.

Taiwan and China have been governed separately since the end of a civil war in 1949, and both still compete for diplomatic recognition.

The switch leaves Taiwan with just 24 allies, compared to China's 170.

China regards Taiwan as a breakaway province which it has vowed to retake. It refuses to have diplomatic ties with nations that recognise Taiwan.

Following suit

At a news conference, the Costa Rican president thanked Taiwan for its "solidarity and co-operation" but said he had taken the decision "thinking of all the Costa Ricans".

"We are looking to strengthen the commercial ties and attract investment. China is the most successful emerging economy in the world," he said.

Analysts say Taiwan is fearful that Costa Rica's shift in allegiance to Beijing could prompt other Latin American nations such as Nicaragua and Panama to follow.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/asia-pacific/6729035.stm

Published: 2007/06/07 00:51:31 GMT

BBC NEWS | UK | Saudi prince 'received arms cash'

BBC NEWS | UK | Saudi prince 'received arms cash'

audi prince 'received arms cash'
Arms deals with the Saudis have been worth billions to the UK
BBC investigation
A Saudi prince received secret payments from the UK's biggest arms dealer, a BBC investigation has revealed.

BAE Systems made regular payments of hundreds of millions of pounds to Prince Bandar bin Sultan for more than a decade.

The payments were made with the full knowledge of the Ministry of Defence.

Prince Bandar would not comment and BAE systems said they acted lawfully at all times. The MoD said information about the Al Yamamah deal was confidential.

The Prince served for 20 years as Saudi ambassador to the US.

Warplane deal

Up to £120m a year was sent by BAE from the UK into two Saudi embassy accounts in Washington for more than a decade.

There wasn't a distinction between the accounts of the embassy or official government accounts
David Caruso
American bank investigator

The BBC's Panorama programme has established that these accounts were actually a conduit to Prince Bandar, the architect of the 1980s Al Yamamah deal to sell warplanes to Saudi.

The purpose of one of the accounts was to pay the expenses of the Prince's private Airbus.

David Caruso, an investigator who worked for the American bank where the accounts were held, said Prince Bandar had been taking money for his own personal use out of accounts that seemed to belong to his government.

He said: "There wasn't a distinction between the accounts of the embassy, or official government accounts as we would call them, and the accounts of the royal family."

Mr Caruso said he understood this had been going on for "years and years".

"Hundreds of thousands and millions of dollars were involved," he added.

Investigation stopped

According to Panorama's sources, the payments were written into the arms deal contract in secret annexes, described as "support services".

They were authorised on a quarterly basis by the MoD.

The payments were discovered during a Serious Fraud Office (SFO) investigation.

The SFO inquiry into the Al Yamamah deal was stopped in December 2006.

Prime Minister Tony Blair said at the time it had been dropped because of national security concerns.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/uk_news/6728773.stm

Published: 2007/06/06 22:47:47 GMT

© BBC MMVII

Complicit, Cowardly Corporate Media Hides Bilderberg


Barely a passing mention of meeting of 200 global powerbrokers in U.S. press
prisonplanet

Number of mainstream U.S. news outlets that reported on Paris Hilton over the past week: 10,000+

Number of mainstream U.S. news outlets that reported on a meeting of nearly 200 of the world's most powerful people this past weekend; Less than a handful.

The Bilderberg Group meeting, an annual conference at which the consensus for future global policy is provably manifested, again passed by with barely a mention on behalf of America's corporate media.

The Dallas Morning News carried a single article about Texas Governor Perry's visit, a story that was subsequently picked up in brief blurbs by a couple of local Texas TV news affiliates and a few bylines on page 30 of a couple of papers in the lone star state.

Apart from that, save a mention in an online Village Voice blog - nothing, absolutely nothing about a confab of the most powerful and influential people on the planet. In comparison, G8 is a mere talking shop and yet it is lavished with attention while Bilderberg is hidden in the shadows.

Nothing in the New York Times and nothing in the Washington Post or the Wall Street Journal, both of which were represented at the meeting. Nothing in Le Figaro of France or the Financial Times of London, who also were both represented by chief editors.

Media moguls who attend Bilderberg, such as Washington Post CEO and Chairman Donald E. Graham, swear an oath of secrecy and fulfil a promise each year to omit any coverage of Bilderberg from their news outlets.

Is it really any wonder that the traditional media model is dying and that more and more enlightened people in their droves are turning to alternative news sources in search of the truth?

Even the Turkish media, hardly reputed as a bastion of free speech, put the U.S. press to shame with a deluge of newspaper and TV coverage of Bilderberg and the protest that accompanied it in Istanbul.

Bilderberg routinely claims that it is simply a private meeting and that no policy is set within the confines of the ring of armed security the group erects around its hotel of choice. Yet courageous researchers like Jim Tucker and Daniel Estulin have demonstrated year upon year that what is discussed at Bilderberg quickly becomes policy if not in the near-term then years down the line.

The BBC uncovered documents form a former Bilderberg member dating back to the early 50's betraying the fact that the European Union and the single Euro currency were both brainchild's of the Bilderberg Group.

At the 2005 Bilderberg meeting in Munich Germany, leaked talking points obtained from the speeches given at the conference indicated that Bilderberg expected oil prices to surge over the next 12 months, which is exactly what happened.

Bilderberg has a proven history of acting in a kingmaker capacity. Both Bill Clinton and Tony Blair attended before becoming President and Prime Minister and it was also reported that Bilderberg selected John Edwards as Kerry's running mate in 2004. Hillary Clinton was rumored to have attended last year's conference in Ottawa.

Bilderberg is not about signing treaties, trade deals or agreeing to topple certain foreign heads of state - it's about creating a consensus for its members to adhere by, and the way in which topics are presented by speakers makes it obvious what the agenda will be.

This veneer of distinction provides Bilderberg with the justification to claim they don't set any concrete policy, but only the most deluded and naive observer could dismiss the notion that hundreds of the most influential people in the world getting together and talking doesn't have some play in what we later see unfold as policy.

Bilderberg members expressed their alarm at the speed of which the rush to invade Iraq was being pushed by the American elite in 2002, and so they resolved to recommend any military action be delayed until 2003 , which is exactly what happened.

This year, speakers expressed their "concern" about Iran's nuclear proliferation - which in Bilderbergese is a rubber stamp for war. Though the language is couched in the lexicon of international relations, make no bones about it, the orders are transmitted and followed.

Bilderberg is the closest thing you will ever get to the secret world government and no amount of sneering, whitewash or smear on behalf of the corporate media - many of which are represented at the conferences, diminishes that fact.

3rd Debate Rigged but Ron Paul Still Wins

Texas Congressman put in shadows while establishment shills lavished with time and attention, yet Paul still wins post-debate polls

prisonplanet

Viewers of last night's Republican presidential debate again came away with the distinct impression that the corporate media, in this case CNN, had again deliberately limited Ron Paul's speaking time while affording lavish attention to establishment candidates like Giuliani and McCain.

We invited members of our Prison Planet.tv forum to comment live on the debate as it unfolded and the consensus was that the Texas Congressman was deliberately sidelined;

"This is awful! Rudy, Romney and McCain are getting most of the time. Over half of the time so far has easily gone to them. I am going to need to go back and time this thing. I'm sure that there will be complaints if this continues."

"Once again Ron Paul has been cheated."

"The 'mainstream' candidates are getting most of the airtime. It feels like a setup."
"Every aspect of that debate was outrageous! They ended with some demagogue rhetoric from McCain and went straight back to him! And now Giuliani! Why do people buy their lies!"

A You Tube blogger held similar sentiments, pointing out that host Wolf Blitzer failed to even give Ron Paul an opportunity to answer a question about health care, when he was the only doctor on the stage. In addition, candidates like Giuliani and McCain had already spoken on two separate occasions before the Texas Congressman had even spoken once.

In another example of censorship , CNN asked people to comment on the debate at their website, but when the comments that came in were overwhelmingly pro-Ron Paul, CNN simply removed them and replaced them with comments about Sunday night's democratic debate.

Despite all these attempts to once again sideline Ron Paul and derail the momentum of his campaign, the "champion of the Constitution" is still leading all the post-debate polls.

The CNN poll shows Ron Paul leading in every positive category, save "snappiest dresser", which hardly matters. CNN's establishment hacks don't even mention Ron Paul, but the popular vote shows him leading the way.

Vote.com shows Ron Paul trouncing his nearest contenders, leading the way with a mammoth 78% of the vote at time of press.

Once again, the best efforts of the corporate media to pretend that Ron Paul and the building momentum of his campaign does not exist, along with their attempts to downplay and censor the impact the Texas Congressman is having, are inconsequential as the tide of the Ron Paul Revolution comes crashing ashore and the message of liberty continues to resonate with Americans nationwide.

Council bans boy, 6, from flying Jolly Roger at pirate party - because it is 'unneighbourly'


uk daily mail
As his sixth birthday approached, Morgan Smith's parents thought hoisting the Jolly Roger would be the perfect way to make the pirate-mad youngster's day.

The flag was duly run up the pole in the back garden, leaving Morgan looking forward to a party on Saturday with lots of friends wearing eyepatches and wielding toy cutlasses.

But little did the family know that out on the treacherous high seas of bureaucracy, trouble was heading their way.

Council officials branded the skull and crossbones flag "unneighbourly" and banned Morgan's parents Richard and Sharon from flying it.

The couple must apply for planning permission at a cost of £75, and then an assessment of the 5ft by 4ft flag's "impact" on the surrounding area of Stone, Staffordshire, will be undertaken.

The intervention has sunk the plans for a pirate-themed party.

Morgan's 40-year-old father, an engineer at Bentley Motors, said: "It's not as though I'm building a huge extension which will blight the neighbourhood. It's a child's pirate flag.

"Morgan is really upset because I'd told him we could have a pirate party for his birthday with him and his friends all coming dressed as pirates.

"The skull and crossbones was to be the centrepiece. We'll wait to see if the Jolly Roger is approved and if so we'll hold the party at a later date."

For years, the patriotic family have flown a Union Jack or a St George's flag on the 18ft-high flagstaff at their detached home without a problem, but a neighbour complained to the council about the Jolly Roger.

Mr Smith said: "When the lady from the council came to see me she said that it was no problem flying any of the other flags, it was the Jolly Roger that was of concern.

"She said that we would have to take it down. I've put in a planning application but I shouldn't have to go to all this trouble."

Mrs Smith, 43, said: "It strikes me as very petty. Who would complain about it? Obviously someone with too much time on their hands."

Councillor Richard Stevens said the council had objected to the flag because "it was unneighbourly and could open the doors for all kinds of flags".

A Stafford Borough Council spokesman said: "A planning application has been made for a Jolly Roger flag to be flown at a property in Stone.

"The application is currently under review and will include planning officers looking at the impact the flag has on the area, with the decision expected by the end of this month.

"Legislation requires planning approval before it can be flown from the flagpole."

The Jolly Roger dates back to the 1700s when pirates would fly it to make their victims surrender readily.

Internet Doomsday Creeps Closer


Big government pushes for total taxation and restriction on the last great outpost of free speech

infowars.com

Recent proposals in the U.S. Congress are taking a huge swipe at freedom in America once again by aiming to impose multiple different forms of crippling taxation and restriction on users of the internet.

State and local governments this week resumed a push to lobby Congress for far-reaching changes on two different fronts: gaining the ability to impose sales taxes on Net shopping, and being able to levy new monthly taxes on DSL and other Internet-service connections. One senator is even predicting taxes on e-mail, reports CNet.

Several bills were introduced last week that could see all manner of new forms of internet taxation become a reality before the end of the year.

Sen. Michael Enzi, a Wyoming Republican, introduced a bill (PDF link) for mandatory sales tax collection for Internet purchases, meaning that if you buy items through online sites like eBay or Amazon.com, you might have to start paying additional sales taxes on your purchases.

The Libertarian party has warned that the bill represents more big government intervention and that while Enzi insists the bill "would not increase taxes," the Sales Tax Fairness and Simplification Act would open the door for states to charge sales tax on Internet sales. In contrast to his statement, the C-Net article states that Enzi warned that other taxes may zoom upward if his "mandatory sales tax collection" bill isn't passed.

In a second and separate proposal during a House of Representatives hearing last week, politicians weighed whether to let a temporary ban on internet access taxes lapse when it expires on November 1.

Such a move would leave open the possibility that simply using the internet would require a tax to be paid which critics suggest could sound a death knell for broadband, DSL and "always on" high speed internet.

Rep. Hank Johnson, a Democrat from Georgia compared the move to taxing people for simply entering shopping malls or libraries. With the U.S. economy already under considerable strain, taking a huge swipe at e-commerce, one of its cornerstones, seems like the worst possible thing Congress could do.

Furthermore, allowing taxation on internet access represents a slippery slope towards opening up the possibilities of taxing all kinds of internet based services.

"They might say, 'We have no interest in having taxes on e-mail,' but if we allow the prohibition on Internet taxes to expire, then you open the door on cities and towns and states to tax e-mail or other aspects of Internet access," said Sen. John Sununu, a New Hampshire Republican.

An email tax would certainly suit both the government and internet providers who would likely get a cut. Last year it was revealed that AOL is planning to charge mass-emailers a fee to avoid the ISP's spam filters and guarantee that their marketing emails arrive straight in AOL subscribers' inboxes. Yahoo! is also endorsing the scheme.

Under such a system email considered "uncertified" would risk running through AOL and Yahoo!'s discrimination process. And as this potential profit center for the two net giants takes off, there's no incentive for either company to deliver the "free email" - and every incentive for them to get the world conditioned to paying for guaranteed delivery.

A United Nations agency also proposed in 1999 the idea of a 1-cent-per-100-message tax, indicating that the idea has been floating around for almost a decade.

In recent months, a chorus of propaganda intended to demonize the Internet and further lead it down a path of strict control has spewed forth from numerous establishment organs:

* Time magazine reported last month that researchers funded by the federal government want to shut down the internet and start over, citing the fact that at the moment there are loopholes in the system whereby users cannot be tracked and traced all the time.
The projects echo moves we have previously reported on to clamp down on internet neutrality and even to designate a new form of the internet known as Internet 2.

* In a display of bi-partisanship, there have recently been calls for all out mandatory ISP snooping on all US citizens by both Democrats and Republicans alike.

* Republican Senator John McCain recently tabled a proposal to introduce legislation that would fine blogs up to $300,000 for offensive statements, photos and videos posted by visitors on comment boards. It is well known that McCain has a distaste for his blogosphere critics, causing a definite conflict of interest where any proposal to restrict blogs on his part is concerned.

*
During an appearance with his wife Barbara on Fox News last November, George Bush senior slammed Internet bloggers for creating an "adversarial and ugly climate."

*
The White House's own recently de-classified strategy for "winning the war on terror" targets Internet conspiracy theories as a recruiting ground for terrorists and threatens to "diminish" their influence.

*
The Pentagon recently announced its effort to infiltrate the Internet and propagandize for the war on terror.

*
In a speech last October, Homeland Security director Michael Chertoff identified the web as a "terror training camp," through which "disaffected people living in the United States" are developing "radical ideologies and potentially violent skills." His solution is "intelligence fusion centers," staffed by Homeland Security personnel which will go into operation next year.

*
The U.S. Government wants to force bloggers and online grassroots activists to register and regularly report their activities to Congress. Criminal charges including a possible jail term of up to one year could be the punishment for non-compliance.

*
A landmark legal case on behalf of the Recording Industry Association of America and other global trade organizations seeks to criminalize all Internet file sharing of any kind as copyright infringement, effectively shutting down the world wide web - and their argument is supported by the U.S. government.

*
A landmark legal ruling in Sydney goes further than ever before in setting the trap door for the destruction of the Internet as we know it and the end of alternative news websites and blogs by creating the precedent that simply linking to other websites is breach of copyright and piracy.

*
The European Union, led by former Stalinist and potential future British Prime Minister John Reid, has also vowed to shut down "terrorists" who use the Internet to spread propaganda.

*
The EU data retention bill, passed last year after much controversy and with implementation tabled for late 2007, obliges telephone operators and internet service providers to store information on who called who and who emailed who for at least six months. Under this law, investigators in any EU country, and most bizarrely even in the US, can access EU citizens' data on phone calls, sms', emails and instant messaging services.

*
The EU also recently proposed legislation that would prevent users from uploading any form of video without a license.

* The US government is also funding research into social networking sites and how to gather and store personal data published on them, according to the New Scientist magazine. "At the same time, US lawmakers are attempting to force the social networking sites themselves to control the amount and kind of information that people, particularly children, can put on the sites."

The development of a new form of internet with new regulations is also designed to create an online caste system whereby the old internet hubs would be allowed to break down and die, forcing people to use the new taxable, censored and regulated world wide web.

Make no mistake, the internet, one of the greatest outposts of free speech ever created is under constant attack by powerful people who cannot operate within a society where information flows freely and unhindered. Both American and European moves mimic stories we hear every week out of State Controlled Communist China, where the internet is strictly regulated and virtually exists as its own entity away from the rest of the web.

The Internet is freedom's best friend and the bane of control freaks. Its eradication is one of the short term goals of those that seek to centralize power and subjugate their populations under a surveillance panopticon prison.

Federal Reserve faces growing pressure to raise rates.

bloomberg/chinapost
In the options market where the savviest investors take apart conventional wisdom, the Federal Reserve is facing growing pressure to consider raising interest rates as soon as December.

Options on Federal Fund futures at the Chicago Board of Trade indicate a 41 percent chance the central bank will lift its target rate for overnight loans between banks to 5.5 percent from the current 5.25 percent, according to data compiled by Bloomberg. A month ago, they showed no expectations for an increase.

While the economy expanded at the slowest pace in more than four years in the first quarter, inflation remains at the top of the Fed's comfort zone, business activity has rebounded, the jobless rate is near the lowest in six years and stock indexes are setting record highs. Just three months ago, options traders speculated the weakest housing market in 16 years would force the central bank to cut interest rates to 4.5 percent by January.

"The economy is in better shape than people give it credit for," said Jamie Jackson, who oversees government debt trading at RiverSource Investments in Minneapolis, which manages US$100 billion of bonds. "People exaggerated the pass-through effects of the housing weakness. If the Fed were to do something by year-end it would be a tightening."

The chance of at least one cut in the overnight lending rate between banks has fallen to 29 percent from 83 percent since the start of May, options prices show.

Federal Reserve policy makers "have started to tell us in pretty consistent language they're not satisfied at being at the upper band" of their inflation target, said Stan Jonas, who trades interest-rate options in New York at Axiom Management Partners LLC. "One-third of the people think the next move is going to be a tightening."

Options more accurately reflect changes in monetary policy than futures contracts, the most widely used barometer, because they include the widest array of wagers, according studies by the Federal Reserve Bank of Cleveland in 2005 and the Federal Reserve Bank of St. Louis in 2006.

The Cleveland Fed paper has influenced the study of monetary policy expectations and follows a "perfectly sound procedure," said James Hamilton, an economics professor at the University of California, San Diego.

The CBOT first listed the options in 2003 and began offering contracts in July that allow bets on the Fed's target rate. The so-called binary options pay US$1,000 if an investor bets correctly on the Fed's interest-rate decision at regularly scheduled meetings. Investors get nothing if they bet wrong.

Treasury yields climbed last week to the highest since August. The yield on the benchmark Treasury note due in May 2017 rose 9 basis points, or 0.09 percentage point, to 4.95 percent. Its price fell about 23/32, or US$7.19 per US$1,000 bond, to 96.15.

Treasuries returned 1.1 percent so far this year, compared with a 1.5 percent loss last year, according to indexes compiled by Merrill Lynch & Co.

Personal spending on items excluding food and energy, the Fed's preferred inflation measure, rose 2 percent in April, at the top of the central bank's preferred 1 percent to 2 percent range. It had been above 2 percent the previous 12 months.

Central bankers reiterated their forecast for faster growth and said "downside risks" to the economy have "diminished slightly," according to minutes of the May 9 Federal Open Market Committee meeting released last week.

"Economic growth will pick up as we move through the year," Federal Reserve Governor Randall Kroszner said at a June 1 conference in Athens. "The risks to the inflation outlook are primarily to the upside."

Merrill Lynch & Co., Goldman Sachs Group Inc. and UBS AG, among the biggest bond bulls this year, have yet to change their forecasts for the Fed after predicting a housing-led recession would result in at least three rate cuts this year. Merrill and Goldman are based in New York and UBS is in Zurich.

New home sales rose 16 percent in April to an annualized rate of 981,000, according a Commerce Department report released May 24. Analysts attributed the increase to developers reducing prices of unsold houses. The average selling price dropped 10 percent, the report said.

Gains in stocks that pushed the Standard & Poor's 500 index to a record 1535.56 on May 30 discouraged the Fed from cutting rates, said David Rosenberg, chief economist for Merrill in New York. Rosenberg predicted at the beginning of January that rates would fall to 4.25 percent this year. He declined to specify when the Fed will cut rates in an interview May 30.

Foreign Relations Experts Urge U.S. To Beef Up Numbers Of Its Available Diplomats

the day
Washington — The Iraq and Afghanistan wars have overstretched the U.S. Foreign Service, damaging its morale and threatening its performance around the world, charged a coalition of advocates for diplomats Tuesday.

The Foreign Affairs Council, a group of 11 nonprofit organizations, said in a report that the State Department needs to hire 1,100 foreign service officers simply to restore the capabilities it had when Secretary of State Condoleezza Rice took her post at the beginning of 2005.

“The Foreign Service is at the front end of a personnel crisis, and if something isn't done ... we're going to have a very, very serious situation a year or so from now,” Thomas Boyatt, a retired U.S. ambassador and the council's president, said at a news conference.

The council said Rice has required diplomats to carry out a more aggressive mission of “transformational diplomacy” to prod other countries to adhere to democratic principles. But at the same time, they have had to cope with wartime strains, inadequate language and skills training and more overtime work.

In addition, about 750 have been required to take one-year stints in sometimes dangerous postings where they are not allowed to bring their families.

Over the past two years, the Bush administration failed to anticipate the need for foreign service personnel, including in Baghdad, where about 200 Foreign Service Officers work in a 1,000-person embassy, the largest in the world, the council said.

At the same time, Congress has rejected the administration's requests for additional personnel in the past two budgets.

About 200 Foreign Service jobs abroad are unfilled, and about 900 other training slots needed to give diplomats language and other job skills are unavailable. About 9,000 diplomats and others work for the Foreign Service.

Officials of the advocacy group said that the recent shift of diplomats from Europe to the Middle East and elsewhere has left embassy staffs in Europe sometimes unable to get their work done on time.

Despite the morale problems, however, statistics do not indicate that Foreign Service Officers are quitting their jobs at higher rates, Boyatt said.

In the 1990s, with the end of the Cold War, Congress cut the staffing and budget of the Foreign Service by about one-third. In President Bush's first term, then-Secretary of State Colin L. Powell, alarmed by short staffing of the organization, added about 1,000 officers. But now those have been “vacuumed up” in Iraq, Afghanistan and other new danger spots, Boyatt said.

Protesters clash with police at G8 summit

Europe News
Heiligendamm, Germany - Up to 10,000 anti- globalization protesters blocked roads Wednesday and gathered at a fence around the Heiligendamm venue for the G8 summit in Germany.

Police used tear-gas and water-jets from special anti-riot trucks to drive part of the crowd back from the welded-mesh, steel fence erected at a radius of 2 kilometres from the summit hotel.

The demonstrators ignored a legal ban on close-up protests, although it was confirmed at midday by German constitutional court judges in the southern city of Karlsruhe.

Police said water cannon parked at the perimeter fence were used after stones were thrown at police from a crowd of about 800 near the main access gate. Another group of 300 approached a second of two gates.

Police used water jets and tear gas to clear thousands of protesters off Highway 105 which runs past Heiligendamm at a distance of about 6 kilometres.

The protesters also sat down on a coastal lane leading into Heiligendamm from the east and an antique steam railway on the coastline from the west, forcing organizers to transport reporters to the venue on Germany Navy boats.

Another sit-down protest halted traffic on the autobahn near Rostock Airport, where the non-German delegations were landing Wednesday to travel to Heiligendamm by road.

Exultant demonstrators voiced surprise that the police had not stopped them. Organizers said they had 10,000 protesters on the move in the countryside near Heiligendamm to disrupt the summit.

'We just walked over the fields where the water-cannon couldn't follow us,' said a spokeswoman for the protest group Block G8, which regards the summit as illegitimate.

A police spokesman denied the special summit police force, which had met frequently beforehand with protest organizers, had been surprised by the invasion. Police said about 8,000 protesters were in the fields and woods.

An adequate number of officers was at the scene to protect the fence from being breached, the spokesman said. The summit police force, drawn from several German states, numbers 16,000.

Police helicopters flew in reinforcements and evacuated an unspecified number of injured officers.

The demonstrators had swarmed out of their tent villages near the exclusive Baltic beach resort and marched through fields and woods to bypass police road-blocks several hours before the summit was to begin.

The protesters, hailing from several European nations, were mainly in their 20s, many wearing colourful casual dress or humourous costumes, but a few wearing the hoods and the black clothes that mark out militants.

Two Spanish students aged 20 and 21 were meanwhile sent to jail at a summary trial for their part in an anti-G8 riot four days earlier in the port city of Rostock.

The younger man was given nine months for throwing stones at police and the elder ten months because one of the stones actually hit an officer. Defence lawyers said they would appeal against the convictions.

The previous day, the first rioter to be convicted, a 31-year-old, received 10 months on similar charges.

An estimated 2,000 black-clad protesters fought with riot police Saturday.

Bush says Russia won't attack Europe

ap
HEILIGENDAMM, Germany — President Bush on Wednesday discounted Vladimir Putin's threat to retarget missiles on Europe, saying "Russia's not going to attack Europe."

Bush, in an interview with The Associated Press and other reporters, said no U.S. military response was required after Putin warned that Russia would take steps in response to a U.S. missile shield that would be deployed in Poland and the Czech Republic.

"Russia is not an enemy," Bush said, seeking not to inflame a heated exchange of rhetoric between Washington and Moscow. "There needs to be no military response because we're not at war with Russia. ... Russia is not a threat. Nor is the missile defense we're proposing a threat to Russia."

Bush spoke before heading off to lunch with German Chancellor Angela Merkel, who is hosting the annual meeting of the world's seven richest industrial democracies and Russia. Merkel has made global warming the centerpiece of her G-8 leadership and is pushing for specific targets for reducing carbon emissions.

The meeting is being held under tight security on the Baltic Sea coast in northern Germany. Police used water cannons to scatter an estimated 10,000 demonstrators who swarmed a seven-mile fence that encircles the site. At one section, hundreds of protesters chanted "Peace" and "Free G-8! Free G-8!"

Bush, who met with reporters for nearly an hour in a sun-drenched garden, also discussed Iran, the suffering in Darfur, global warming and this week's sentencing of a former White House aide.

The president said he would like to see other countries follow the United States in taking steps against the government of Sudan to stop the misery in Darfur.

"I'm frustrated because there are still people suffering and the U.N. process is moving at a snail's pace," Bush said.

Bush announced tighter U.S. sanctions on Sudan last week. He also is seeking a U.N. resolution to apply new international sanctions against the Sudanese government.

On climate change, Bush said he would not give ground on global warming proposals that would require mandatory caps on greenhouse gas emissions. Instead, he backed his own idea for the United States and other nations that spew the most greenhouse gases to meet and — by the end of next year — set a long-term strategy for reducing emissions.

Merkel has proposed a "two-degree" target, under which global temperatures would be allowed to increase no more than 3.6 degrees Fahrenheit, (2 degrees Celsius) before being brought back down. Practically, experts have said that means a global reduction in emissions of 50 percent below 1990 levels by 2050. Merkel supports a global carbon-trading market as one tool.

But Bush wants to bring India, China and other fast-growing countries to the negotiation table. He envisions that each country will set their own goals, and decide whether they should be binding. The president said his plan addresses "life after" 2012, the expiration date for the Kyoto Protocol, which the United States has not endorsed.

Merkel put a good face on her talk with Bush about issues such as combatting poverty in Africa. But their debate on global warming seems unlikely to produce the kind of hard targets she and others have advocated. "We started here on a very good footing," she said.

While global warming topped Bush's talks with Merkel, and hers with other leaders before the evening's official opening of the summit, the president's plan to deploy an anti-missile radar system in the Czech Republic and 10 interceptor missiles in Poland is likely to be a key topic in Bush's meeting Thursday with Putin.

Asked if he anticipated a tense encounter, Bush replied "Could be. I don't think so ... I'll work to see that it's not a tense meeting."

Putin has accused the U.S. of starting a new arms race and said if the U.S. pressed ahead with its plan, Russia would revert to targeting its missiles on Europe as it did during the Cold War. China joined Russia in saying the missile defense plan could touch off a new escalation in nuclear weapons.

The move to put the missile defense shield in former Warsaw Pact nations — purportedly as a defense against a future missile launch from Iran — clearly fanned Putin's anger.

Bush cited Iranian President Mahmoud Ahmadinejad's declaration that it was "too late" to stop Iran's nuclear program as justification for the U.S. missile defense system. "Therefore, let's build a missile defense system," Bush said, adding that it was time to return to the U.N. Security Council to tighten pressure on Iran to give up its suspected weapons program.

Bush also has angered Putin in the past by criticizing Russia's spotty progress on democratic reform and human rights — a theme Bush expressed in a speech just one day ago. Bush said that despite all the problems, the United States has a friendship with Russia. He suggested Putin's recent rhetoric could be calculated mostly for internal political consumption in Russia.

"There will be disagreements," said Bush, who has invited Putin to meet him in July in Kennebunkport, Maine, the home of his father, former President George H.W. Bush. "That's the way life works."

On an issue back in Washington, Bush refused to say whether he might pardon I. Lewis "Scooter" Libby, the former White House aide, who was sentenced Tuesday to 21/2 years in prison. Libby, the former chief of staff to Vice President Dick Cheney, was convicted of lying and obstructing in a CIA leak investigation.

"Yesterday was a very sad day for Scooter and his family," Bush said.

Claims tying shots to autism go to court - Kids & Parenting - MSNBC.com

Claims tying shots to autism go to court - Kids & Parenting - MSNBC.com

Claims tying shots to autism go to court
Scientists dispute claims that mercury in shots led to kids’ condition
The Associated Press
Updated: 7:59 p.m. ET June 4, 2007

WASHINGTON - Science has spoken when it comes to the theory that some childhood vaccines can cause autism. They don’t, the Institute of Medicine concluded three years ago.

Soon, it will be the court’s turn to speak.

More than 4,800 claims have been filed against the federal government during the past six years alleging that a child contracted autism as a result of a vaccine. The first test case from among those claims will be the subject of a hearing that was to begin next Monday in a little-known “People’s Court” — the U.S. Court of Federal Claims. A special master appointed by the court will hear the case.

For the parents filing a claim, there is the potential for vindication, and for financial redress.

The test case addresses the theory that the cause of autism is the measles, mumps and rubella vaccine in combination with other vaccines containing the preservative thimerosal. That preservative, which contains a form of mercury, is no longer in routine childhood vaccines. However, it is used in influenza vaccines.

One of the parents who has filed a claim against the federal government and has great interest in the case is Scott Bono of Durham, N.C. His son, Jackson, 18, has autism. While acknowledging the findings of the IOM’s study, Bono believes those findings were preordained by the federal government.

“The charge before the IOM committee was: ‘You’re not going to find anything wrong here,”’ Bono said.

He said that parents of children with autism have been marginalized, but they see specific outcomes in their children that are consistent with exposure to mercury. And those outcomes did not present themselves until after they received their vaccinations. In short, the children tell the story better than the numbers, he said.

“It’s a thrill in the sense that, for the first time, the stories of these children are going to be heard in court,” Bono said.

No correlations found
In July 1999, the U.S. government asked vaccine manufacturers to eliminate or reduce, as expeditiously as possible, the mercury content of their vaccines to avoid any possibility of infants who receive vaccines being exposed to more mercury than is recommended by federal guidelines.

Dr. Paul Offit, who developed a vaccine for the rotovirus, is chief of the division of infectious diseases at the Children’s Hospital of Philadelphia. He said epidemiological studies pick up minute, almost invisible differences in the populations that have received a vaccine versus those that have not.

For example, a swine flu vaccine in the 1970s caused the sometimes paralyzing Guillain-Barre syndrome in 1 out of 100,000 cases, he said.

But no such correlations have been found for autism, which affects about 1 out of 150 children, he said.

“It should be easily picked up,” he said. “It hasn’t been and the reason it hasn’t been is because vaccines do not cause autism.”

Offit said mercury is part of the natural environment. There’s no escaping it and, in fact, children will get more mercury from breast milk than they get from a vaccine. Yet, he’s frustrated when he hears lawmakers speak of having zero tolerance for mercury.

“On this planet you can’t have zero tolerance for mercury,” he said. “You would have to move to another planet.”

Working too closely?
Autism is characterized by impaired social interaction. Those affected often have trouble communicating, and they exhibit unusual or severely limited activities and interests. Meanwhile, classic symptoms of mercury poisoning include anxiety, fatigue and abnormal irritation, as well as cognitive and motor dysfunction.

The report from the Institute of Medicine pointed to five large studies, here and abroad, that tracked thousands of children since 2001 and found no association between autism and vaccines containing the preservative thimerosal.

Members of the National Autism Association see drug manufacturers and the federal government as working too closely together to the point that the federal government is working to protect the industry from liability. The association says its mission is to raise awareness of environmental toxins as causing neurological damage that often results in an autism or related diagnosis.

Bono, a member of the association, said he doesn’t believe his son was intentionally poisoned.

“I just want someone to step up and say, ‘You’re right, this did happen,”’ he said.

During the hearing, lawyers for the parents were expected to present their expert testimony during the first week. Then lawyers representing the federal government were expected to present their case. The hearing was to be open to the public.

Officials planned to post transcripts on the court’s Web site about 24 hours after each day’s proceedings.

© 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

URL: http://www.msnbc.msn.com/id/19036669/
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Is Ritalin a divorce drug for children?

Xinhuanet
A Canadian researcher on Monday called for an investigation into why children from broken marriages are twice as likely to be prescribed attention-deficit drugs as children whose parents remain together.

University pf Alberta professor Lisa Strohschein reported in the Canadian Medical Association Journal more than 6 percent of 633 children from divorced families were prescribed Ritalin, compared with 3.3 percent of children whose parents stayed together.

"It shows clearly that divorce is a risk factor for kids to be prescribed Ritalin," Strohschein said.

The study of more than 4,700 children started in 1994, while all the families were intact, Strohschein said. They followed the children's progress to see what happened to their families and to see what drugs were prescribed.

Other studies have shown that children of single parents are more likely to get prescribed drugs such as Ritalin. But is the problem caused by being born to a never-married mother, or some other factor?

Ritalin, known generically as methylphenidate, is a psychostimulant drug most commonly prescribed for the treatment of attention-deficit hyperactivity disorder in children.

There is a big debate in much of the developed world over whether it may be over-prescribed — given to children who do not really need it. In March, a University of California, Berkeley study found that the use of drugs to treat ADHD has more than tripled worldwide since 1993.

Strohschein said it is possible that some mental health problems pre-date the divorce, so "it is possible that these kids had these problems before, but are only being identified afterward."

Tuesday, June 05, 2007

Bush Says Democracy Spread Inevitable, Rebukes Russia

June 5 (Bloomberg) -- President George W. Bush, calling the spread of democracy inevitable, rebuked the governments of Russia, Venezuela, Uzbekistan and other nations for lapses that he said threaten to unsettle a period of post-Cold War peace.

``Pursuing stability at the expense of liberty does not lead to peace,'' Bush said in a speech today at Czernin Palace in Prague. ``The policy of tolerating tyranny is a moral and strategic failure.''

Bush's aides billed his ``freedom agenda'' speech as the most significant of his weeklong European trip, which includes the annual summit of the leaders from the Group of Eight industrial nations. He used the backdrop of a former Soviet Bloc state to say that ``freedom can be resisted, and freedom can be delayed -- but freedom cannot be denied.''

Citing America's experiences with South Korea and Taiwan, Bush argued that it is compatible to push for democratic reforms in China and Russia while maintaining ``a friendship.''

``China's leaders believe that they can continue to open the nation's economy without also opening its political system. We disagree,'' Bush said. ``In Russia, reforms that once promised to empower citizens have been derailed, with troubling implications for democratic development,'' he said.

Bush said the U.S. intended to use its influence to prod other allies toward more open societies. He included among them Egypt, Saudi Arabia and Pakistan. ``These nations have taken brave stands and strong action to confront extremists, along with some steps to expand liberty and transparency,'' Bush said. ``Yet they have a great distance still to travel.''

`Worst Dictatorships'

Bush identified Belarus, Burma, Cuba, North Korea, Sudan and Zimbabwe as ``some of the world's worst dictatorships.''

The president also directed his message at governments he said were ``unjustly'' holding dissidents. ``I call for the immediate and unconditional release of your loved ones,'' Bush said to the families of Alexander Kozulin of Belarus, Aung San Suu Kyi of Burma, Oscar Elias Biscet of Cuba, Father Nguyen Van Ly of Vietnam, and Ayman Nour of Egypt.

In his address, Bush said a global movement of ``violent Islamic extremists'' is threatening ``free people everywhere,'' and expanding freedom is ``the only realistic way to protect our people.''

Bush said that freedom is ``under assault'' in Venezuela, accusing President Hugo Chavez of resorting to ``a shallow populism to dismantle democratic institutions and tighten their grip on power.'' Chavez has refused to renew the license of Radio Caracas Television, a government critic.

Tension With Putin

Bush's remarks highlighted the increasing tension between Russia and the West over President Vladimir Putin's moves to stifle dissent and the U.S. president's plan to install a missile defense system in Eastern Europe, a dispute that is overshadowing the G-8 summit.

Putin warned that putting the anti-missile system in Europe would spark a new arms race and that Russia may retaliate by targeting Europe with its arsenal of missiles.

Earlier today, after meeting with Czech President Vaclav Klaus and Prime Minister Mirek Topolanek, Bush said he wanted to assure Putin that ``Russia is not our enemy.'' The missile defense is intended to thwart potential threats from ``a rogue regime,'' he said, inviting Russia to participate.

`Tone Things Down'

Bush's ``appeal to Putin on missile defense sounded genuine and on the mark,'' said Andrew Kuchins, director of Russia and Eurasia Program at the Center for Strategic and international Studies in Washington. ``I think Vladimir will tone things down at the G-8, but it does seem that whatever we say or do really sets him off now.''

Spokesman Dmitry Peskov said the Kremlin rejects Bush's comment about the derailing of democratic reforms. ``Russia is a democratic country that shares common world and common European values,'' Agence France-Presse quoted Peskov as telling reporters before the G-8 meeting in Germany.

Bush plans to meet with Putin June 7 on the sidelines of the Heiligendamm summit, and has invited the Russian leader to the Bush family compound in Maine on July 1-2.

Bush's speech in Prague was the latest in a series of appearances around the world in which he has extolled the spread of democracy in a post-Sept. 11 world. Today's forum was organized by Jose Maria Aznar, the former prime minister of Spain, Vaclav Havel, the former Czech prime minister and Natan Sharansky, the former Soviet dissident.

Under the auspices of the Prague Security Studies Institute, a non-profit group that promotes democracy and free markets in former Soviet satellite states, Bush's audience included dissidents and democratic activists from 17 countries.

Before leaving for Germany, Bush met privately with 30 delegates to the conference, the White House said.

Bush said in his speech that he ordered Secretary of State Condoleezza Rice to direct all U.S. ambassadors to meet with activists for democracy and human rights. ``People living in tyranny need to know they are not forgotten,'' Bush said.

CIA running black propaganda operation against Iran, Syria and Lebanon, officials say

raw story
The Central Intelligence Agency has received approval at least twice in the last several years to conduct an “information war” against several countries in the Middle East, including Iran, Lebanon and Syria, according to current and former intelligence officials.

In addition, the Bush Administration has been running operations out of the Defense Department that are not subject to Congressional oversight, intelligence sources say. These programs appear murkier, and have included support for an alleged terrorist group in Iran.

A recent ABC News report revealed that President George W. Bush had signed a presidential finding giving the CIA the authority to conduct “non-lethal” covert operations against Iran. Former and current intelligence sources tell RAW STORY, however, that there have been “at least two” presidential findings over the past few years which have empowered the agency to run an “open-secret” information war against Iranian interests, mainly leveraging resources and assets “within the United States and France.”

Although the resources – people, groups, organizations – were not identified, sources say that they are not terrorist organizations or groups using violent tactics to achieve their goals. “It's a propaganda operation,” said a former intelligence case officer who wished to remain anonymous due to the sensitive nature of the information. “It is not new or aggressive,” the source added, explaining that the operation has been going on for some time and has Congressional funding and oversight.

CIA spokesman Paul Gimigliano would not comment about the allegations made in the ABC report or discuss the existence of the presidential findings identified to RAW STORY.

“The CIA does not, as a matter of course, publicly discuss allegations of covert action, whether the assertions are wrong, right, or somewhere in-between,” Gimigliano said. “That's one reason why the term ‘covert action' still exists.”

“But it's important to remember that, through the Congress, there is vigorous oversight of secret intelligence activities,” he added.

According to current and former intelligence officials, the various presidential findings are not limited to Iran. Several countries within the Middle East – including Syria and Lebanon – as well as groups such as Hezbollah, are being targeted through what sources call “black propaganda” efforts.

Iran is being targeted by the CIA's activities with a “pro-democracy” message, sources say, and the agency is supporting overt “pro-democracy” groups.

The program's particulars are highly classified. Intelligence sources stress, however, that the groups being used are rather mainstream and the operations are almost entirely restricted to information warfare.

Sources would not identify what mechanism was being employed to distribute the propaganda, if it included news media, individuals or organizations, or whether that information was seeping back into domestic news reports.

One former intelligence case officer did explain that the CIA's program is operating largely outside of the Middle East and is aimed at identifying potential allies, as well as using already existing well known groups through whom information can be delivered. The type of “information” and the “groups” and “organizations” involved were not identified.

ABC News may have reported the presidential finding as “new” because of the recently passed massive intelligence budget. Under the bill, roughly $50 million was appropriated for the “Democracy Fund” and the “Broadcasting Board of Governors,” both earmarked for Iran operations.

Sources close to the Select Senate Committee on Intelligence would not discuss any aspect of the CIA program or comment on anything relating to the presidential findings.

“This is an area I simply cannot get into,” said one source.

Pentagon operation supporting terrorist group kept from Congress

RAW STORY has also learned that the Pentagon is continuing to conduct more aggressive “black” operations, approved by the National Security Council and the Office of the Vice President.

Current and former intelligence officials would not identify new specific covert programs running out of the Pentagon, though sources stressed these are far riskier and more truly covert operational activities against Iran than the activities of the CIA.

These operations started almost immediately after the Iraq war and have continued for several years. Because they can be considered part of a military operation, they are not subjects to the same requirements for Congressional authorization as the activities of the CIA.

The majority of these efforts to destabilize Iran through a covert war of aggression have been carried out by the Department of Defense, largely steered by the Office of the Vice President and by then-Secretary of Defense Donald Rumsfeld.

A series of RAW STORY reports has identified some of the “off book” or black operations running out of the Pentagon over the last several years. In 2003, the Defense Department began working with terrorist and dissident groups in an effort to destabilize Iran, bypassing traditional intelligence channels. One of the assets the Pentagon used was a terrorist organization known as Mujahedeen-e Khalq (MEK), which was being “run” in two southern regional areas of Iran, including a Shia region where a series of attacks in 2006 left many dead and hundreds injured.

These activities have often been guided by the same individuals whose actions during Iran-Contra were the reason for a 1991 law on covert activities which for the first time clearly defined covert activities and how their oversight should be handled.

During Iran-Contra, the Reagan White House – via the National Security Council – sold weapons to Iran, an avowed enemy of the United States, and used the money to fund various terrorist and dissident groups, collectively called the Contras, to fight a proxy war against the government of Nicaragua.

Sources say that MEK has been used for intelligence collection, an activity which has traditionally fallen under the CIA. The administration also appears to be looking the other way as groups such as MEK commit acts of violence.

Intelligence sources interviewed for this article all expressed concern over the lack of attention to the Pentagon's covert activities. Some believe illegal activities like those of the Iran-Contra days are now being hidden under the loophole of “traditional military activities” to avoid Congressional oversight.

Steven Aftergood, director for the Federation of American Scientists Project on Government Secrecy, says this loophole exists in Congressional oversight with regards to military covert activities.

“CIA covert actions have to be authorized by a written presidential finding, which must be provided to Congress,” Aftergood said. “By contrast, DOD operations, including clandestine or covert operations, are not subject to this procedure.

“As a result,” he added, “there may be a temptation to opt for a purely military action to take advantage of the loophole in congressional notification requirements.”

Covert economic warfare may not be limited to CIA

Another former intelligence official said that the CIA has been cleared to target Iran's economic interests, but that the approval is limited to non-aggressive activities. The CIA “has been empowered to put economic pressure on Iran,” the former intelligence officer stated, but would not elaborate on what the meaning of “pressure” is.

Yet some suggest that the economic element of the covert program is either far more aggressive or is being attributed to the CIA when in fact another agency may be running it.

Foreign intelligence sources say that economic pressure is aimed at Iran's oil-rich economy, with US efforts serving to “persuade” financial institutions, oil companies, and international investment interests to pull out of Iran and even drop already existing energy projects.

These sources cite the example of an unnamed company that is being denied financing for energy projects inside Iran by international banks, indicating that many more such examples exist.

Other possible forms of pressure would include less subtle activities, such as intercepting supply convoys and confiscating equipment. Foreign sources are not sure if this covert activity is in fact part of the CIA program.

The Department of Defense did not respond to comment on this story.

Muriel Kane contributed to the research for this article.

Most of Baghdad 'not controlled'

bbc
US and Iraqi forces control fewer than one-third of Baghdad's neighbourhoods, according to a review of a security crackdown in the city since February.
An interim US military assessment says sectarian violence has diminished in some areas, but is particularly serious in Sunni-Shia areas of west Baghdad.

More than 20,000 US reinforcements are being deployed as part of the campaign.

Details of the report came as police said they had shot a suspected female suicide bomber in east Baghdad.

An interior ministry spokesman said the woman in traditional Muslim dress, walked towards a police recruiting centre and ignored calls to stop.

Three police recruits received minor wounds from the explosion. The woman died at the scene of the attack.

"Some elements of the mechanised brigade saw a suspicious woman and ordered her to stop, but she didn't respond and approached the recruits, so they opened fire on her and she exploded," a police spokesman said.

Although suicide bombings are a frequent occurrence in Iraq, female bombers are relatively rare.

'Iraqi failures'

A US military spokesman said it would not be possible to judge the success of the Baghdad security plan until all the extra units had been put in place.

"It's going to get harder before it gets easier," Lt-Col Christopher Garver said. "We know it's going to be a tough fight over the summer."

Details of the interim assessment included information that US and Iraq forces were in control of just 146 of Baghdad's 457 districts.

The report highlighted a failure of Iraqi police and army units to provide all the forces promised to carry out basic security tasks including manning checkpoints and conducting patrols.

May had the third highest death toll of American soldiers, 127, since the US-led invasion to overthrow the government of Saddam Hussein in March 2003.

Thousands of Iraqis have been killed since February.

Correspondents say there was a significant reduction in the number of sectarian killings early on in crackdown, but numbers have now risen again, with dozens of bodies being found in Baghdad almost every day.

President George W Bush won a tough battle with opposition-controlled Congress to fund the crackdown and is under pressure to show progress or start bringing troops home.

Experts cast doubt on credibility of JFK terror plot

afp
An alleged plot to blow up fuel tanks and pipelines at New York's JFK airport had little chance of success, according to safety experts, who have questioned whether the plot ever posed a real threat.

US authorities said Saturday they had averted an attack that could have resulted in "unfathomable damage, deaths, and destruction," and charged four alleged Islamic radicals with conspiracy to cause an explosion at the airport.

But according to the experts, it would have been next to impossible to cause an explosion in the jet fuel tanks and pipeline. Furthermore, the plotters seem to have lacked the explosives and financial backing to carry out the attack.

John Goglia, a former member of National Transportation Safety Board, said that if the plot had ever been carried out, it would likely have sparked a fire but little else, and certainly not the mass carnage authorities described.

"You could definitely reach the tank, definitely start the fire, but to get the kind of explosion that they were thinking that they were going to get... this is virtually impossible to do," he told AFP.

The fuel pipelines around the airport would similarly burn, rather than explode, because they are a full of fuel and unable to mix with enough oxygen.

"We had a number of fires in the US. All that happens is a big fire," he said. "It won't blow up, it will only burn."

Even if the attackers had managed to blow up a fuel tank, the impact would be limited, he said, citing the example of North Vietnamese forces attacking US fuel dumps during the Vietnam war.

"They hit the fuel tanks with pretty big rockets. You would get a big fire but not a big explosion other than the rocket."

"There is a difference between just exploding the tank and a huge explosion. The tank may explode and blow up some metal, but that certainly wouldn't go very far," he said.

His comments contrasted with those of US Attorney Roslynn Mauskopf, who insisted at the weekend that "the devastation that would be caused had this plot succeeded is just unthinkable."

Jake Magish, an engineer with Supersafe Tank Systems, also cast doubt on the credibility of the plot, saying: "The fantasy that I've heard about the people saying 'they will blow the tank and destroy the airport,' is nonsense."

"There are people there responding to hysteria, I think. But from an engineering point of view, if someone is successful in blowing a hole into a tank, they will just have a fire from one tank.

"There is no way for the fire to go from tank to tank, that is nonsense. It just won't happen."

Besides the alleged plotters' capability, other questions have focused on the main source in the probe -- a convicted drug dealer who infiltrated the group and whose sentence was pending as part of his cooperation with police.

Neal Sonnett, a former federal prosecutor, told the New York Times there was also a danger in overstating how serious or sophisticated a plot really was.

"There unfortunately has been a tendency to shout too loudly about such cases," he said. "To the extent that you over-hype a case, you create fear and paranoia," he said.

The New York Times on Sunday pointedly avoided giving much coverage to the alleged plot, devoting only a brief on its front page continued on the local section, despite the story breaking in the early afternoon on Saturday.

Bush derails attempts to end illegal wiretapping

Press Esc
President Bush derailed a bill by the US Congress aimed at ending the Administration's illegal wiretapping by not providing documents related to the President's warrantless wiretapping program to the Senate Intelligence Committee that is currently reviewing the proposed legislation.

The US house of representatives last month passed the Intelligence Authorization Act for Fiscal Year 2008 bill with an amendment that makes Foreign Intelligence Surveillance Act of 1978 (FISA) the only means by which domestic electronic surveillance for the purpose of gathering foreign intelligence information may be conducted.

The bill has been referred to the Senate Intelligence Committee, but the Committee is unable to proceed as the White House has repeatedly refused to hand over the relevant documents.

"Another critical priority for congressional oversight is government wiretapping of Americans, conducted under the Foreign Intelligence Surveillance Act, and, illegally, under the President's warrantless wiretapping program," Senator Russ Feingold said. "When the program was finally placed within the FISA process, an opportunity arose for the Administration and the Congress to move forward, under the law. Unfortunately, the Administration has yet to demonstrate a real interest in doing so."

Feingold accused the Administration of seeking broad new authorities unrelated to keeping FISA up-todate with new technology, and pursuing these authorities while refusing to rule out further surveillance activities entirely outside of the law.

"For more than four years, the Administration failed to inform the full congressional intelligence committees of the warrantless wiretapping program," said the Senator who cosponsored an ammendment by co-sponsor by Senator Feinstein to ensure that all members of the Committee receive, at a minimum, summary information about programs that the Administration has sought to limit to the Chairman and Vice Chairman. "In doing so, the Administration violated the National Security Act, which allows restricted notification to the “Gang of Eight” only in certain limited cases involving covert action."

In 2005 Bush acknowledged that he authorised the National Security Agency in 2002 to eavesdrop on US citizens communicating with people overseas.

16,000 police deployed to halt violence

london guardian
A multinational coalition of protesters will today begin their bid to physically prevent world leaders from gathering at the G8 summit despite widespread criticism of violent tactics during growing demonstrations in Germany.

Water cannons, riot vans and 16,000 police officers - one per protester - last night fanned out around the Baltic resort of Heiligendamm to end the protests.

More than 1,000 people were injured on Saturday in Rostock, the nearest city, in some of the most violent protests seen in postwar Germany. The authorities are desperate to avoid a repeat of the violence that marred the 2001 G8 in Genoa, where a student was shot dead by police.

As 8,500 people yesterday marched in Rostock in favour of "global freedom of movement and equal rights" - one of a series of themed protest days in the run up to the summit's opening tomorrow - hundreds more were in camps just outside the seven miles of steel and barbed wire fencing guarding the G8 venue.

Four miles from the fence, protesters set up their own security around a 4,000-strong camp in the village of Reddelich. A wooden watchtower has been built to survey the tents and police beyond.

While the atmosphere in the camp was relaxed, with bratwurst and beer on sale, a children's playground and bands and cabaret in the evening, groups also got to work practising how to evade capture and arrest by the police.

German police, newspapers and even some protesters have voiced doubts about the violent tactics during the weekend protests but organisers insisted their aim remained to shut down the G8 and their methods would be forceful.

Police said more than 400 officers and 520 demonstrators were hurt after a peaceful rally turned violent in Rostock on Saturday night.

Officers blamed the violence on 2,000 militants known as the "black block" - black-clad hooded and masked youths who attacked police lines. Forty-nine people were arrested yesterday.

Monday, June 04, 2007

US debt could trigger dollar collapse, UN warns

GLOBAL PRESS

The United States dollar is facing imminent collapse in the face of an unsustainable debt, the United Nations warned today.

United States debt, which had now deepened to well over $3 trillion, might turn out to be unsustainable in the rest of 2007 or next, putting further downward pressure on the United States dollar, Rob Vos, the Director of the Development Policy and Analysis Division of the Department of Economic and Social Affairs (DESA), told correspondents at a Headquarters press conference.

He pointed out that since its peak in 2002, the dollar had depreciated vis-à-vis the major currencies by some 35 per cent and by 25 per cent against a broader range of other currencies.

Vos made these comments at the launch of the 2007 World Economic Situation and Prospects report midyear update.

With that increased debt the risk of a sharp depreciation of the dollar continued, he warned. If countries willing to invest in United States dollar assets expected further depreciation, they might be less willing to hold dollar assets, triggering a much sharper fall in the United States dollar. The risk of disorderly adjustment and the steep fall of the dollar existed. The policy challenge was how to prevent a hard landing of the United States dollar and forge a benign adjustment of the global imbalance.

In terms of the United States housing sector, he noted that a recession in the housing sector had continued in 2007, with a slowdown in activity and a large number of unsold homes. While house prices had not fallen, that might happen in the months and years to come if the recession continued as expected. A decline in prices would affect the domestic market, particularly household consumption in the United States, resulting in the risk of a serious recession in its economy, slowing growth from 2.1 per cent to 0.5 per cent in 2007 and 2008. That would then significantly slow the world economy and transmit the recession into the rest of the world.

The United States deficit had increased to $860 billion at the end of 2006, and was expected to fall to $800 billion in 2007. That deficit was basically being financed by surpluses in the developing and oil exporting countries, as well as some major developed countries, in particular Japan and Germany. The European Union,at large, was projected to continue to have a slight deficit on its current account.

Continuing, he said the current tendency in macroeconomic policy was not all in the right direction, particularly in the surplus countries where there had been a tightening of monetary and fiscal policies, particularly in Germany and Japan, making it more difficult for the United States to lower its external deficits by export growth. The United States would also need to adopt some contractionary policies to slow down its deficit, he recommended.

Is the dollar facing collapse?

MONEYWEEK
‘Dollar bills are looking rather scrunched up,’ says John Authers in the FT. The greenback posted a marginal recovery last week after hitting an all-time low of almost $1.37 against the euro a fortnight ago, and it also recently touched a 26-year low of more than $2 to the pound. On a trade-weighted basis - against a basket of its major trading partners’ currencies - it has fallen by around 27% over the past five years.

There are several influences on currencies and, as Edward Hadas points out on Breakingviews.com, ‘all of them are pointing to a lower dollar’. A key factor over the short to medium term is interest rates; high rates boost the yield on a currency’s assets. With US growth disappointing - the IMF expects it to marginally underperform Europe in 2007 - many analysts are pencilling in US rate cuts later this year; in Europe and the UK, they are set to rise. Stronger growth outside the US means ‘there’s a depreciation bias in the dollar’, Kenneth Rogoff of Harvard University told Bloomberg.com. Meanwhile, US inflation is uncomfortably high, which undermines the dollar’s appeal as a store of value, notes Hadas.

Then there’s the key long-term influence on currencies, the current-account balance. The US current-account deficit appears to have stabilised of late, but it still comprises a ‘scary’ 6% of GDP, says Hadas. Given all this, it’s no wonder BNP Paribas is expecting the dollar to fall to $1.40 amid a hard landing in the US, while Rogoff foresees another 10% drop in the trade-weighted index by the end of 2008.

And a dollar collapse ‘cannot be ruled out’, says the FT. The hole in the current-account deficit is being plugged by purchases of US government bonds by oil-producing nations and, crucially, Asian central banks determined to keep their currencies low against the greenback to bolster their exports. China’s reserves alone amount to about $1.2trn. A further decline in the dollar could ‘push forward the day on which the world’s dollar holders begin to worry that they have a trillion or two too many’, says Dailyreckoning.co.uk. The FT highlights IMF worries that investors appear increasingly willing to dump their underperforming dollar holdings. So the dollar looks set to either keep drifting lower - or plummet. The latter, says Dailyreckoning.co.uk, should cause ‘real excitement’ in world markets.