As Obama Plans Retaliation Against “Russian Hacking”, A Problem Emerges


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In a fiery press conference on Friday, shortly before departing for his last Hawaiian vacation, president Obama accused the press of being responsible for Hillary Clinton’s loss, slammed “domestic propagandists” who he said were responsible for the risk of “fake news” and assisting foreign counter-US propaganda, but more importantly Obama vowed to “send a clear message to Russia” in retaliation for its election hacking – of which the CIA still has to demonstrate evidence – as both a punishment and a deterrent. However, a problem has emerged as the outgoing president plans how to “punish or deter” Russia – according to the NYT, some of the options were rejected as ineffective, others as too risky.

If the choices had been better, one of the aides involved in the debate noted recently, the president would have acted by now, although the fact that he hasn’t demonstrates just how ineffective US counter-cyberwar planning has been despite spending billions of dollars in preparation for just this eventuality.

In its latest expose on US-Russian cyberrelations, the NYT writes that over the past four months, American intelligence agencies and aides to Obama had assembled a menu of options to respond to Russia’s hacking during the election, ranging from the obvious — exposing President Vladimir V. Putin’s financial ties to oligarchs, and something which has already been done on various occasions in the past — to the innovative, including manipulating the computer code that Russia uses in designing its cyberweapons.

Obama has refused to effect any of the options, however, because, as the NYT adds, “in his last weeks in office, that Situation Room debate has confronted a naturally cautious president with a complex calculus that President-elect Donald J. Trump will soon inherit: how to use the world’s most powerful cyberarsenal at a moment when the United States, as the election showed, remains highly vulnerable.”

 The underlying concern is that, in a time when cyberwarfare is the modern equivalent of the “nuclear arms race” (even as the old, familiar “nuclear” cold war has been quietly reignited in Europe between Russia and NATO), all the legacy “game theory” caveats have emerged, including “tit-for-tat” escalation, and – in the most extreme – mutual assured destruction.  David H. Petraeus, the former CIA director captured much of that sentiment on Friday, at a conference here sponsored by Harvard’s Belfer Center for Science and International Affairs: “Is there something we can do to them, that they would see, they would realize 98 percent that we did it, but that wouldn’t be so obvious that they would then have to respond for their own honor? The question is how subtle do you want it, how damaging do you want it, how do you try to end it here rather than just ratchet it up?

It is, according to the NYT, this fear of retaliation to various escalating response that has paralyzed Obama from moving forward. Furthermore, the options provided to the US president appear to be insufficient for the task at stake.

On one hand, the idea of exposing Putin’s links to oligarchs was set aside after some aides argued that it “would not come as a shock to Russians.” Still, there are proposals to cut off leaders in Putin’s inner circle from their hidden bank accounts in Europe and Asia. There is an option to use sanctions under a year-old executive order to ban international travel for senior officials in the G.R.U., the Russian military intelligence unit that American spy agencies say stole emails from the Democratic National Committee and Hillary Clinton’s campaign chairman, then doled them out to WikiLeaks, betting that media outlets eager for insider details would amplify them, doing the Kremlin’s work for it.

There have been other options proposed by the NSA and its military cousin, the United States Cyber Command, which is responsible for computer-network warfare, though many have been rejected by the Pentagon.

 Those plans could deploy the world-class arsenal of cyberweapons assembled at a cost of billions of dollars during Mr. Obama’s tenure to expose or neutralize some of the hacking tools favored by Russia’s spies — the digital equivalent of a pre-emptive strike. But the selection of targets by Americans and the accuracy of that retaliation could also expose software “implants” that the United States has patiently inserted and nurtured in Russian networks, in case of future cyberconflicts.

However, using the extreme approach presents a new host of challenges: the revelation in August about some of the N.S.A.’s own tools for breaking into foreign computer networks has raised the possibility that the Russians are already inside American networks and are sending a warning that they can respond in kind.

Which leads to the troubling conclusion that, when it comes to retaliating against the Kremlin, Obama is stuck.

“All of this has led Mr. Obama to ask how the Russians might escalate the confrontation, and whether the United States in the end may have more to lose than Russia. “He doesn’t have great options,” said Michael D. McFaul, formerly one of Mr. Obama’s top national security aides and then his ambassador to Moscow.”

Which, according to the NYT, means that the president has reached two conclusions:

 The only thing worse than not using a weapon is using it ineffectively. And if he does choose to retaliate, he has insisted on maintaining what is known as “escalation dominance,” the ability to ensure you can end a conflict on your terms.

Mr. Obama hinted as much at his news conference on Friday, as he was set to leave for his annual Hawaii vacation, his last as president.

“Our goal continues to be to send a clear message to Russia or others not to do this to us because we can do stuff to you,” he said. “But it is also important to us to do that in a thoughtful, methodical way. Some of it, we will do publicly. Some of it we will do in a way that they know, but not everybody will.”

Continuing to justify Obama’s paralysis, the paper of record adds that the president “rejected calls for a big, symbolic show of power, dismissing the idea that if the United States “thumped our chests about a bunch of stuff, that somehow that would potentially spook the Russians.” The goal, Mr. Obama said, was to come up with a response “that increases costs for them for behavior like this in the future but does not create problems for us.”

In other words, the damage has already been done, so there is little point in escalating it further, however – the thinking in the administration goes – the US hopes to “teach the Kremlin a lesson” and prevent it from interfering again in the future. That is, assuming of course, that it was Russian authorities that interfered in the first place, something they vehemently deny, and an allegation the CIA has failed to convince the general public by not presenting credible, conclusive evidence so far that it was indeed Putin directly orchestrating it (as the WaPo claimed). Indeed, many allusions to the fake allegation of Iraq’s Weapons of Mass Destruction have emerged in response to the latest CIA accusations, suggesting that the public refuses to be swayed purely on the basis of emotion appeals to “listen to experts and sources.”

* * *

Meanwhile, and perhaps most ironically, it is the NYT itself that admits that there is not much new in tampering with elections, except for the technical sophistication of the tools, and further writes that “for all the outrage voiced by Democrats and Republicans in the past week about the Russian action… it is worth remembering that trying to manipulate elections is a well-honed American art form,” something we noted last week in “The CIA Is Accusing Russia Of Doing Exactly What The CIA Does.”

In short, America is furious that someone has allegedly finally done something to it that it, itself, has been doing to others for decades. Some examples:

 The C.I.A. got its start trying to influence the outcome of Italy’s elections in 1948, as the author Tim Weiner documented in his book “Legacy of Ashes,” in an effort to keep Communists from taking power. Five years later, the C.I.A. engineered a coup against Mohammad Mossadegh, Iran’s democratically elected leader, when the United States and Britain installed the Shah.

“The military coup that overthrew Mosaddeq and his National Front cabinet was carried out under CIA direction as an act of U.S. foreign policy, conceived and approved at the highest levels of government,” the agency concluded in one of its own reports, declassified around the 60th anniversary of those events, which were engineered in large part by Kermit Roosevelt Jr., a grandson of President Theodore Roosevelt.

There were similar interferences over the years in Guatemala, Chile and even in Japan, hailed as a model of post-World War II democracy, where the Liberal Democratic Party owes its early grip on power in the 1950s and 1960s to millions of dollars in covert C.I.A. support.

The only differences this year are that the effort was directed at the United States, and that it was cyberenabled, giving Moscow a tool to amplify its efforts through the echo chamber of social media and news organizations that quoted from the leaked emails.

The bottom line, embarrassing as it may be, is that “over the past few months, an administration that prided itself on its work on cyberoffense and cyberdefense has learned a hard lesson: When it came to the 2016 election, an economically failing Russia, dismissed by Mr. Obama on Friday for its inability to grow or to innovate, exploited giant holes in the American system.”

Even more embarrassing, is how the Democratic Party, and John Podesta, confident in their security, allowed themselves to be hacked, whether by the Russiansor some hacker operating in New Jersey.

 As a detailed account in The New York Times last Wednesday revealed, the D.N.C. had virtually no protections for its electronic systems, and Mrs. Clinton’s campaign chairman, John D. Podesta, had failed to sign up for the “two-factor authentication” on his Gmail account. Doing so probably would have foiled what Mr. Obama called a fairly primitive attack.

Then there the delays within the chain of command:

  Mr. Obama conceded that he first heard about the attack on the Democratic National Committee “early last summer,” or nine months after the F.B.I. first alerted low-level D.N.C. officials about what had happened. That now appears to be critical lost time.

If Mr. Obama had confronted the Russians immediately, in public or in the kind of private warning he said he delivered to Mr. Putin only three months ago during a meeting in China, the United States might have derailed the hacking campaign before it harvested and revealed thousands of emails.

Obama’s failure and reticence has sparked anger within his own rank and file, further putting pressure on the president to act lest he appears weak.

 Obama’s comments on Friday have led Democrats to demand further action. Representative Adam B. Schiff of California, the ranking Democrat on the House Intelligence Committee, said the response should mix “additional economic sanctions along with our allies, and clandestine means of exacting a cost on the Russians for their flagrant meddling in our election.” “I have little confidence,” he continued, “that the incoming president will take the actions necessary to make the Russians pay any price for the most consequential ‘active measures’ campaign against us in history.”

Others, like republican neocon John, accused Obama of having “no strategy and no policy” of how to deal with the Russian hacking.

So what happens now? The biggest question facing Obama, the NYT concludes, is how public a retaliation to execute (if any, of course).

In his press conference, Obama laid out a case on Friday for acting with subtlety, so as not to start a tit-for-tat conflict. But as Joseph Nye, a strategist on so-called soft power, noted on Friday, “The reason to make some of this public is not just to deter the Russians, it is to deter others as well,” in future elections. It is possible, said Mr. McFaul, the former ambassador to Russia, that Mr. Obama’s most lasting contribution may be to get the details of the Russian hack declassified and to publish a report he has instructed the intelligence community to assemble before he leaves office.

 “Given that Obama only has a few more weeks in office, I think he needs to focus his remaining time on attribution — that is declassification of intelligence so that there is no ambiguity about the Russian actions,” Mr. McFaul said. That “is completely within his powers,” he added, and would spur more congressional investigations regardless of the stance taken by Mr. Trump on the hack.

In the end, however, the simplest solution may also be the correct one: the US has so far not retaliated (and will not retaliate) against Russia, because despite the constant populist pandering and the jawboning, it was never the Russian government that was responsible for the attack (something a Spiegel report from Saturday hinted at), something which the US government would be aware of – despite the media onslaught to deflect attention to Russia as the cause for Hillary’s loss.

If this is indeed the case, the consequence of launching a cyberwar with Russia, one which Moscow did not start, would be constant escalation leading to adverse consequences for both countries, much more “dirty laundry” emerging a la the Podesta emails, complicated by its timing. A cyberwar would come at a time of a historic shift within the US administration, one in which a regime that has doggedly tried to suppress Putin and waged a long-running PR campaign against the Kremlin, will soon be replaced with a Trump administration whose stated foreign intentions are to restore friendly relations with the Kremlin.

Ultimately, despite all the bluster and posturing, Obama will most likely do nothing.

Chinese Interbank Lending Freezes, Forcing Massive Intervention By China’s Central Bank


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China is finding itself in an increasingly more untenable situation, trapped on one hand by its sliding currency (and declining reserves), which as noted earlier it has manipulated higher by forcing overnight unsecured rates to spike, in the process punishing  “speculators” and other shorts…

 

… and on the other, by a banking sector that finds itself desperately in need of liquidity, unable to endure the PBOC’s monetary interventions, and on the verge of a liquidity crisis comparable to what Chinese banks suffered in the summer of 2013 when overnight rates briefly shot up above 20% as China pushed aggressively with a failed deleveraging campaign.

All this came to a head late last week when as Caixin reported late on Thursday, interbank lending froze on Thursday after many commercial banks suspended interbank operations amid tight liquidity conditions. Caixin adds that major institutions such as securities firms and fund managers, suddenly found themselves in a liquidity vacuum after banks, including the big four state-owned banks, became reluctant to make loans.

The magazine added that liquidity had become a major factor affecting the market after the central bank increased the cost of capital through open market operations in the past month, something we highlights three weeks ago in “The Market’s Next Headache: China’s (Not So) Stealth Tightening.”

The latest liquidity freeze forced China’s central bank to immediately extend hundreds of billions of yuan in emergency loans to financial firms on Friday and “ordered” some of the country’s biggest lenders to extend credit as well, as it moved to ease a liquidity crunch and continuing debt selloff.

On Friday, the PBOC tapped an emergency lending facility it created in 2014 to extend 394 billion yuan ($56.7 billion) in six-month and one-year loans to 19 banks. That pushes the net amount extended through the facility to 721.5 billion yuan so far in December, a monthly record, according to Beijing-based research firm NSBO.  The central bank also injected a net 45 billion yuan into the money market on Friday, following a net 145 billion yuan cash infusion on Thursday.

The PBOC also ordered a few large banks to extend longer-term loans to nonbank financial institutions, while China’s securities regulator asked brokers tasked with making a market in bonds to continue trading and not shut any companies out of the market, according to Mr. Zheng of Dongxing Securities.

“The whole market is scrambling for liquidity and the PBOC is ready to do more to calm the market,” said Arthur Lau, head of Asia ex-Japan fixed income at PineBridge Investments in Hong Kong.

According to the WSJ, Investors and analysts said that the PBOC’s moves—which ended up pumping around 600 billion yuan ($86.3 billion) into the markets and financial system in two days—have helped calm some of the jitters.

“These policy interventions have helped tremendously in pacifying the mood,” said Zheng Lianghai, fixed-income analyst at Dongxing Securities in Shanghai.

It is unclear if the “pacified mood” will last: as a reminder, last Thursday, China briefly halted trading in bond futures after a record bond market crash send China’s 10Y yield plunging by the most on record, wiping out over a year of gains.

 

One day later, China suffered its first failed Bill auction since introducing a Primary Dealer system, which theoretically should have made “failed auctions” a thing of the past, over investor concerns of spiking short-term rates.  On Friday, the yield on China’s 10-year government bond jumped about 0.1 percentage point to 3.33%, while yields on the interest-rate sensitive two-year government bond and the 30-year bond, which responds to inflation expectations, rose even more.

According to the WSJ, year-end factors are exacerbating liquidity concerns, among them banks storing up cash to prepare for an expected rush to move money abroad in the new year, when Chinese foreign-exchange quotas for individuals reset. Banks are also preparing for an early Lunar New Year in 2017, when Chinese traditionally give gifts of cash.

Yet some market-watchers say that a host of factors—from rising global rates to the central bank’s attempts to deflate China’s asset bubbles—could hit the country’s $9 trillion bond market, where yields hit record lows this year. If the bond selloff accelerates, some analysts fear China could see a market crash like the one that hit stocks last year.

Indeed, the jitters go deeper than seasonal factors. Increased prospects for inflation—and a more hawkish Fed—come as Chinese regulators have already started to tighten short-term borrowing conditions in recent weeks to cool overheating Chinese markets. Over the past year, speculators have borrowed from money markets to fund investments in bonds and other financial products.

So while the PBOC can easily pump liquidity, it could come at the expense of further devaluation in the Yuan, which last week saw its lowest print on record, just shy of the key 7.00 level. A weakening Chinese currency, which has fallen 7.2% against the U.S. dollar this year, has also kept the pressure on officials to tighten monetary policy and stem capital outflows, however it is these same tight conditions that have led to the banking freeze, putting the PBOC in a quandary: does it focus on the banks, or the Yuan.

Meanwhile, the country’s foreign-exchange reserves plummeted by $69 billion in November to $3.052 trillion, putting reserves at their lowest level since March 2011. Officials are ramping up their capital controls to keep the yuan from fleeing overseas by cracking down on overseas acquisitions by mainland companies and limiting how much money multinational companies can move out of the country and into their global operations.

As the following table lays out, while China still has a substantial liquidity buffer left, a worst case scenario could see China running out of liquid US holdings in just around 15 months.

Chinese banks are also being pushed by new domestic regulations to bolster capital levels, and some are rushing to boost their cash positions by selling bonds before the year-end deadline, analysts say.

Further complicating matters, was the announcement by a top economic official on Saturday that China must do more to deflate a property bubble that expanded this year by “strictly” controlling speculation while also stepping up the fight to rein in excessive corporate borrowing, suggesting further monetary tightening is on deck.

“We need to give a higher priority to preventing and controlling financial risks,” Yang Weimin, deputy director of the Office of the Central Leading Group on Finance and Economic Affairs, said Saturday at a forum in Beijing. “We need to defuse a flurry of risks, contain asset bubbles, and improve oversight to ensure there won’t be a systemic financial risk.”

Yang spoke a day after China’s top policy makers said they plan prudent and neutral monetary policy next year to sustain a steady expansion with breathing room for reforms. Preventing and controlling financial risk to avoid asset bubbles will be a priority, officials said in a statement Friday after the three-day Central Economic Work Conference.

“Houses are built to be inhabited, not for speculation,” the post-meeting statement said. It proposed using finance, land, taxation, investment and other instruments “to establish a fundamental and long-term system to curb real-estate bubbles and market volatilities,” according to a report Saturday from the official Xinhua News Agency. Yang, who helped draft Friday’s statement, sits on the Communist Party’s elite financial and economic panel led by Xi that is shaping policies to help support growth. The director of the panel’s general office is Liu He, one of Xi’s top advisers which likely means that China’s top priority at this point will be withdrawing further excess liquidity from the market in a gradual attempt to restore affordability to China’s housing market.

The question is whether China can do that while avoiding a hard landing for the banking sector, which once again finds itself desperate for liquidity, yet while can also ill afford further capital outflows, which would result from additional liquidity injections by the central bank.

As stated earlier, this suggests that the PBOC will soon have to make an unpleasant choice: deflate the housing bubble, and avoid an acceleration in capital outflows, or preserve the viability of China’s creaking banking sector and continue with massive “emergency” liquidity injections.

ITALY BOMBSHELL: Eurosceptics thunder into poll lead as left faces collapse without Renzi


The EU in full collapse!

Venezuela postpones currency move after chaos, protests


Venezuela doesn’t have much longer before it is gone!

Obama Blames Russia For Hacking, Slams “Domestic Propagandists” For Rise Of “Fake News”


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As of this moment, president Obama is on his way to Hawaii, having just concluded his final press conference for 2016, and one of the last in his tenure as president. What did we learn in the rambling speech that lasted nearly two hours and saw one of the White House reporters faint? Not much that wasn’t already insinuated, if not proven, repeatedly: Obama stuck to the script, and said Russia “in fact” had “hacked into the DNC,” but that the actual voting process was not compromised. The White House was just trying to “let people know” what was going on, and the media interpreted the reasons.

While Obama took questions about Syria, China and Trump’s transition team, Obama mostly spoke about Russia and the allegations by US intelligence agencies that Moscow had hacked the US election. Obama said that his administration allowed the public “to make an assessment” by letting people know that “the Russians were responsible for hacking” the Democratic National Committee earlier this year, adding that the intelligence community did its job “without political influence.”

Citing alleged cyber security threats to the US, Obama said he had “told Putin to cut out the hacking” and indicated there would be consequences. which however he would not disclose.

“Our goal continues to be to send a clear message to Russia or others not to do this to us, because we can do stuff to you,” he said, adding that Washington’s response to Moscow’s alleged interference is being done “in a thoughtful, methodical way.” “Some of it we do publicly, some of it we will do in a way that they know but not everybody will,” Obama told reporters, adding that “the message will be directly received by the Russians and not publicized.”

“It’s not like Putin is going around the world publicly saying, ‘Look what we did, wasn’t that clever’ – he denies it,” Obama said.

When meeting with Russia’s President Putin in China in September, Obama said he confronted him directlyon the matter. The US leader told Moscow “to cut it out,” and apparently since then Washington “didn’t see further tampering with the election process.”

By then, however, WikiLeaks had already published the DNC documents. In October they began publishing the emails of Clinton’s campaign chair John Podesta, and the media “wrote about it every day,” Obama said.

Obama also told journalists that Hillary Clinton had a “disadvantage” in the presidential campaign because of “how the US media covered her.”

I don’t think she was treated fairly during the election. I think the coverage of her and the issues was troubling,” he said, calling the leaks “an obsession” of the press.

“It’s worth us reflecting how it is that a presidential election of such importance… came to be dominated by a bunch of these leaks,” Obama told reporters, accusing the “divided, partisan, dysfunctional political process” for making the US vulnerable to “potential manipulations that were not particularly sophisticated.”

“This was not some elaborate complicated espionage scheme,” Obama said, again accusing Moscow of having hacked into the Democratic party emails, both Clinton’s and Podesta’s, that contained “pretty routine stuff” such as John Podesta’s risotto recipe. What Obama failed to note is that the Podesta email hack provided an unvarnished, unfiltered and unique glimpse into the Washington corruption and cronyism at the very top levels, something the ordinary public could only dream of getting access to prior to the “Russian hack.”

Also, despite insisting Russia was responsible for making the DNC and Podesta documents public, Obama repeated several times that the actual election was not tampered with.

“My principal goal leading up to the election was making sure the election itself went off without a hitch, that it was not tarnished, and that it did not feed any sense in the public that somehow tampering had taken place with the actual process of voting. And we accomplished that,” Obama said.

“I can assure the public that there was not the kind of tampering with the voting process that was the concern,” he said later, answering another question. “The votes that were cast were counted, and counted appropriately.”

Incidentally, Obama did not miss the opportunity to take the low road, and mock Russia, saying “They’re a small country, they’re a weak country, they don’t produce anything that anybody wants to buy.”

US cyber security faces a “constant challenge,” the president said, adding that Washington has been warning other countries against cyberattacks. The US has been working on creating international norms in the field of cyber security, but along with defensive capabilities Washington also has “some offensive capabilities,” he warned.

Attributing a cyber attack to a particular government can be difficult, and is “not always provable in court,” he cautioned.

* * *

Separately, in a tangential discussion about a topic dear to much of the “alternative media”, Obama shifted attention to the local media, and blamed talk radio and other “domestic propagandists” for the rise of “fake news,” including fictional news items published by state-sponsored actors.

“If fake news that’s being released by some foreign government is almost identical to reports that are being issued through partisan news venues, then it’s not surprising that that foreign propaganda will have a greater effect. It doesn’t seem that far-fetched compared to some of the other stuff folks are hearing from domestic propagandists,” Obama said.

“To the extent that our political dialogue is such that everything is under suspicion, everybody’s corrupt and everybody is doing things for partisan reasons, and all of our institutions are, you know full of malevolent actors, and if that’s the story that is being put out there, then when a foreign government introduces that same argument, with facts that are made up, voters who have been listening to that stuff for years, who have been getting that stuff every day from talk radio or other venues, they’re going to believe it.”

As they should, especially if it’s true.

Obama continued, lamenting that “our political dialogue is such that everything is under suspicion, everybody’s corrupt and everybody is doing things for partisan reasons,” and said “our vulnerability to Russia –or any other foreign power– is directly related to how divided, partisan, dysfunctional our political process is.”

“So if we want to really reduce foreign influence on our elections, then we better think about how to make sure that our political process, our political dialogue is stronger than it’s been.”

 

In other words, please stop criticizing the government as you are responsible for generating further partisan divisions, especially if the line of attack is similar to something the “propaganda” Russian press may put out.

While we would be the first to agree with this statement – if it were accurate – we can’t help but think to last week’s passage of the “Countering Foreign Propaganda and Disinformation Act of 2016“, whose ultimate purpose is to enforce a crackdown on any media – foreign and domestic – that the administration views as hostile.

Which is why we found Obama’s parting statement, that “the Russians can’t weaken us, but Putin can weaken us if we buy into notions that it is ok to intimidate the press“, particularly ironic.

Is This Why Snowden Had to Break the Law to Become an NSA Whistleblower?


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Submitted by Nick Bernabe via TheAntiMedia.org,

National Security Agency (NSA) inspector general George Ellard, an outspoken critic of whistleblower Edward Snowden, personally retaliated against another NSA whistleblower, Adam Zagorin reported at the Project on Government Overreach (POGO) on Thursday.

An intelligence community panel earlier this year found that Ellard had retaliated against a whistleblower, Zagorin writes, in a judgment that has still not been made public.

The finding is remarkable because Ellard first made headlines two years ago when he publicly condemned Snowden for leaking information about the NSA’s mass surveillance of private citizens, wherein Ellard claimed that Snowden should have raised concerns through internal channels. The agency would have protected him from any retaliation, Ellard said at the time.

Politico reported on Ellard’s 2014 comments:

 “‘We have surprising success in resolving the complaints that are brought to us,’ he said.

“In Snowden’s case, Ellard said a complaint would have prompted an independent assessment into the constitutionality of the law that allows for the bulk collection of Americans’ telephone metadata. But that review, he added, would have also shown the NSA was within the scope of the law.

“‘Perhaps it’s the case that we could have shown, we could have explained to Mr. Snowden his misperceptions, his lack of understanding of what we do,’ Ellard said.”

Yet documents confirmed earlier this year that Snowden had, indeed, reported concerns to several NSA officials—who took no action and discouraged him from continuing to voice concerns. Moreover, as Snowden told Vice News:

  “I was not protected by U.S. whistleblower laws, and I would not have been protected from retaliation and legal sanction for revealing classified information about law breaking in accordance with the recommended process.”

Ellard’s 2014 criticism of Snowden appears particularly threadbare after he has been found personally guilty of whistleblower retaliation.

The judgment also came from an external panel of Ellard’s fellow intelligence agency watchdogs. Zagorin writes:

  “[L]ast May, after eight months of inquiry and deliberation, a high-level Intelligence Community panel found that Ellard himself had previously retaliated against an NSA whistleblower, sources tell the Project On Government Oversight. Informed of that finding, NSA’s Director, Admiral Michael Rogers, promptly issued Ellard a notice of proposed termination, although Ellard apparently remains an agency employee while on administrative leave, pending a possible response to his appeal from Secretary of Defense Ash Carter.

 The closely held but unclassified finding against Ellard is not public. It was reached by following new whistleblower protections set forth by President Obama in an executive order, Presidential Policy Directive 19. (A President Trump could, in theory, eliminate the order.) Following PPD-19 procedures, a first-ever External Review Panel (ERP) composed of three of the most experienced watchdogs in the US government was convened to examine the issue. The trio—[Inspectors General (IGs)] of the Justice Department, Treasury, and CIA—overturned an earlier finding of the Department of Defense IG, which investigated Ellard but was unable to substantiate his alleged retaliation.”

 “The finding against Ellard is extraordinary and unprecedented,” Stephen Aftergood, director of the Secrecy Program at the Federation of American Scientists, told Zagorin. “This is the first real test drive for a new process of protecting intelligence whistleblowers. Until now, they’ve been at the mercy of their own agencies, and dependent on the whims of their superiors. This process is supposed to provide them security and a procedural foothold.”

Ellard served as inspector general of the NSA for nine years, Zagorin notes.

The revelation about Ellard echoes other reports of retaliation against whistleblowers from the internal watchdogs meant to protect them, and further affirms Snowden’s repeated argument that he had no choice but to go public with his mass surveillance leaks.

What Did The Russian People Know About The US Election Result?


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The Russians knew!!…

In a wonderfully ironic and perfectly consipiratorial result, Statista’s Dyfed Loesche notes that, it turns out that the Russian were best at predicting who would win the U.S. presidential elections. According to research by Ipsos, only two other countries, or rather a majority of respective citizens, were giving Trump the thumps-up before the race for the White House had started. The rest of the world was convinced that Hillary Clinton would win.

The Mexicans were most convinced that Clinton would make it – understandably so. (Sometimes it’s hard to distinguish wishful thinking from sober realism.) Strange though, that the British who had witnessed the Brexit vote in June didn’t have a stronger foreboding that you indeed should never say never. The respondents were questioned in the month leading up to the presidential election on November 8, 2016.

Infographic: Russians Had an Inkling Trump Would Win | Statista
You will find more statistics at Statista

See – this proves Putin did it… and he told all the Russian people too!!!

Putin Lashes Out At Obama: “Show Some Proof Or Shut Up”


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Putin has had enough of the relentless barrage of US accusations that he, personally, “hacked the US presidential election.”

The Russian president’s spokesman, Dmitry Peskov, said on Friday that the US must either stop accusing Russia of meddling in its elections or prove it. Peskov said it was “indecent” of the United States to “groundlessly” accuse Russia of intervention in its elections.

“You need to either stop talking about it, or finally show some kind of proof. Otherwise it just looks very indecent”, Peskov told Reporters in Tokyo where Putin is meeting with Japan PM Abe, responding to the latest accusations that Russia was responsible for hacker attacks.

Peskov also warned that Obama’s threat to “retaliate” to the alleged Russian hack is “against both American and international law”, hinting at open-ended escalation should Obama take the podium today at 2:15pm to officially launch cyberwar against Russia.

Previously, on Thursday, Peskov told the AP the report was “laughable nonsense“, while Russian foreign ministry spox Maria Zakharova accused “Western media” of being a “shill” and a “mouthpiece of various power groups”, and added that “it’s not the general public who’s being manipulated,” Zakharova said. “the general public nowadays can distinguish the truth. It’s the mass media that is manipulating themselves.”

Meanwhile, on Friday Sergei Lavrov, Russia’s foreign minister told state television network, Russia 24, he was “dumbstruck” by the NBC report which alleges that Russian President Vladimir Putin was personally involved in an election hack.

The report cited U.S. intelligence officials that now believe with a “high level of confidence” that Putin became personally involved in a secret campaign to influence the outcome of the U.S. presidential election. “I think this is just silly, and the futility of the attempt to convince somebody of this is absolutely obvious,” Lavrov added, according to the news outlet.

As a reminder, last night Obama vowed retaliatory action against Russia for its meddling in the US presidential election last month.  “I think there is no doubt that when any foreign government tries to impact the integrity of our elections that we need to take action and we will at a time and place of our own choosing,” Obama told National Public Radio.

US intelligence agencies in October pinned blame on Russia for election-related hacking. At the time, the White House vowed a “proportional response” to the cyberactivity, though declined to preview what that response might entail. Meanwhile, both President-elect Donald Trump, the FBI, and the ODNI have dismissed the CIA’s intelligence community’s assessment, for the the same reason Putin finally lashed out at Obama: there is no proof.

That, however, has never stopped the US from escalating a geopolitical conflict to the point of war, or beyond, so pay close attention to what Obama says this afternoon.

According to an NBC report, a team of analysts at Eurasia Group said in a note on Friday that they believe the outgoing administration is likely to take action which could result in a significant barrier for Trump’s team once he takes office in January.

“It is unlikely that U.S. intelligence reports will change Trump’s intention to initiate a rapprochement with Moscow, but the congressional response following its own investigations could obstruct the new administration’s effort,” Eurasia Group analysts added.

At the same time, Wikileaks offered its “validation” services, tweeting that “Obama should submit any Putin documents to WikiLeaks to be authenticated to our standards if he wants them to be seen as credible.

We doubt Obama would take the whistleblower organization on its offer, even if he did have any Putin documents to authenticate.

Earnest Struggles to Answer How ‘Effective’ Obama’s Response to Russian Hacking Was


No one has ever shown any “evidence” that Russia or Putin “hacked” into and changed the election results making Trump the winner over Hillary. There were leaks from insiders apparently at the DNC and from someone with access to Podesa that provided internal emails to Julian Assuage at Wikileaks. which presented the DNC and the Clinton team in a negative like. The national traditional media played this material down so the general public never really new much about this, however it to help support Trump with his already large band of deplorables. Hillary was her own worst enemy and ran a poor campaign which was the primary reason she lost twice; first to Obama and then second to trump.

To claim now that Putin elected Trump is absurd; Putin is a ruthless tyrant and if he actually had all this information he wold have kept it to use against Hillary after she was elected as blackmail. Trowing that information away to supported elect trump would have don’t him little good as trump is the master negotiator and would have made a tougher world leader than Hillary so there was no upside to Putin supporting Trump and the argument falls apart!

Why I Oppose George Soros


Soros, I believe, is trying to do the same thing as Karl Marx. He is funding an experiment to alter society into what he thinks it should be. I believe in Adam Smith and the best way to help society is to rid it of people like Soros who think they have the right to reshape society into what they believe it should be. The invisible hand works fine and it is the essence of nature. People like Soros admit they do not believe in God, so that means they also assume the universe is theirs to manipulate and play the role of  God. People like Soros always want to rule the world through central planning. It is just not possible, for humanity is the inventor driven by the mother of everything — necessity — never the rulers.

lions-killing-elephantSorry, I have studied the world through the eyes of our clients globally, watching how we all act in our own self-interest just as animals in the wild also have a survival instinct. The design of nature is that one species survives by consuming another. The idea that we can create utopia where everyone enjoys perfect harmony is against the design of nature.

In trading, Soros was quick to recognize a currency peg that was against the natural cycle and thus was overvalued. He jumped on that currency and devoured it just like a lion. Then he wants to pretend to be God and make it an open society?

Soros needs to first study his own actions that are the same as a lion and its prey. He is not competent to judge the world while he bribes or supports politicians who will agree to his idea as long as he hands them the money.

Sorry, I believe in laissez-faire because the system is far too complicated for man to try to change it.