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Tuesday, January 21, 2014

Bitcoin — boom or bubble? Everything you need to know.


 
 The Washington Post
 
 
 
The baffling Bitcoin boom is either an exercise in self-delusion — a high-tech Ponzi scheme that will come crashing down — or an imaginative new Internet technology that could change how millions of people around the world conduct everyday business. There is little middle ground.

Called a “digital currency,” Bitcoin originated in early 2009 with a software program written by Satoshi Nakamoto. Who is Nakamoto? Good question. It’s a pseudonym, and we don’t know who’s behind it — whether man or woman; individual or group; American, Japanese, Russian or some other nationality. But what seems clear is that Nakamoto owns bitcoins worth “hundreds of millions of dollars,” says Jerry Brito, an analyst at the Mercatus Center of George Mason University and a Bitcoin enthusiast.


You can do two things with bitcoins: buy stuff, just as with traditional money; and hold them as an investment or speculation, hoping their price will rise.

Some shopping does occur with bitcoins. The first retail transaction is usually attributed to Laszlo Hanyecz, a computer programmer in Florida, who in May 2010 persuaded someone to order two pizzas for him in exchange for 10,000 bitcoins. Recently, Overstock.com — an online retailer — agreed to accept bitcoins; the Sacramento Kings basketball team will do likewise. According to coinmap.org, about 2,600 stores and businesses worldwide accept bitcoins, with concentrations in Western Europe, California and New York.

Still, bitcoins today are mainly a financial gamble. They’re traded on electronic exchanges, where price swings have been mind-blowing. When Hanyecz bought his pizzas, bitcoins were perhaps worth less than a penny each. In late 2013, prices exceeded $1,000. Short-term variations are enormous. Here’s one stretch in 2013: On April 6, the price was $142.63; on April 16, $68.36; on April 30, $139.23, according to data from coindesk.com. Prices now bounce between $800 and $900. At $800, Hanyecz’s pizzas would cost $8 million.
Basic economics teaches that money serves three roles:

● a medium of exchange, buying and selling;

● a store of value, something whose stability protects wealth;

● a unit of account, a way to price goods and services.

Bitcoin’s wild price fluctuations seem disqualifying on all counts. A business that accepts bitcoins takes an immediate risk that the funds will lose 5 percent or 10 percent of their worth before they can be converted into traditional money (dollars, euros, yen). By this logic, retail uses will remain limited. For similar reasons, bitcoins flunk as a store of value and unit of account.

What has boosted bitcoins’ price is speculative mania and specific events that increased demand. Cyprus’s financial crisis in 2013 reportedly caused European investors to convert euros into bitcoins as a way of evading controls on moving money abroad. Prices rose when Baidu — China’s Google — said it would accept bitcoins in some situations. Because it’s hard to identify owners, bitcoins may also lubricate crime, money-laundering and tax evasion. Bitcoins were used on “Silk Road,” a Web site that peddled illegal drugs.

To skeptics (including this writer), Bitcoin seems a collapse waiting to happen. There’s nothing behind it except clever programming. It’s extremely vulnerable to hostile government actions. Baidu reversed its decision after China’s central bank criticized Bitcoin; Germany’s Bundesbank has done likewise. The FBI pierced Silk Road’s anonymity and shut it down. Could bitcoins be worth $80 or 80 cents instead of $800?

Hold it, retort Bitcoin’s defenders. The standard “bubble” analogy distorts Bitcoin’s technology and potential.

It won’t replace the dollar or the euro, says Brito of the Mercatus Center. Instead, Bitcoin represents a payments technology that competes with Visa and PayPal. Against these, he says, Bitcoin has some huge theoretical advantages. Except for cash, most payment systems require a middleman (usually a bank) to move funds from the buyer’s account to the seller’s account. By contrast, buyers and sellers of bitcoins deal directly with each other. Bitcoins are deposited automatically in the seller’s electronic “wallet.” Savings could be sizable, Brito says.

Jeremy Allaire is chief executive of Circle Internet Financial, a start-up company striving to commercialize Bitcoin. With time, he thinks Bitcoin’s price volatility will subside or be hedged. He says that Bitcoin’s frantic trading is not just mindless speculation. “People are making a bet,” he says. The bet is that Bitcoin will emerge as a global payment platform operating through smartphones, tablets and other devices. If Bitcoin captures even a small share of the multitrillion-dollar global payment market, its current price will be dramatically undervalued, he says. There are now about 12 million bitcoins; the underlying software is supposed to stop production at 21 million.

Ours is an era when technologists are leading us in directions that neither they nor we fully understand. That’s why it’s so hard to know whether Bitcoin represents constructive innovation — or just another old-fashioned swindle.

Read more from Robert Samuelson’s archive.

 
Continue to next article in this post. ~Bear

 

12 questions about Bitcoin you were too embarrassed to ask 

This has been a big week for Bitcoin. On Monday, the Senate Committee on Homeland Security and Governmental Affairs held the first-ever Congressional hearing on Bitcoin. Later in the day, the currency's value reached an all-time high of more than $800.

That has left a lot of people scratching their heads. What's Bitcoin? How do you use it? And why would anyone want to? Read on for answers. (Inspired by Max Fisher's classic explainer on Syria)

1. What's Bitcoin?

Bitcoin is an online financial network that people use to send payments from one person to another. In many ways, Bitcoin is similar to conventional payment networks like Visa credit cards or Paypal. But Bitcoin is different from those and other payment networks in two important ways.

First, Bitcoin is decentralized. For-profit companies own the Visa and Paypal networks and manage them for the benefit of their respective shareholders. No one owns or controls the Bitcoin network. It has a peer-to-peer structure, with hundreds of computers all over the Internet working together to process Bitcoin transactions.

Bitcoin's decentralized architecture means that it is the world's first completely open financial network. To create a new financial service in the conventional U.S. banking system, you need to partner with an existing bank and comply with a variety of complex rules. The Bitcoin network has no such restrictions. People don't need anyone's permission or assistance to create new Bitcoin-based financial services.

The second thing that makes the Bitcoin unique is that it comes with its own currency. Paypal and Visa conduct transactions in conventional currencies such as the U.S. dollars. The Bitcoin network, however, conducts transactions in a new monetary unit, also called Bitcoin.

2. That seems really weird! Why would anyone use a payment network based on an imaginary currency?

It is weird. Almost everyone who encounters the idea for the first time (including me) has the same reaction: That can't possibly work. But so far the market has proved the skeptics wrong:


This graph shows the price of one Bitcoin since the start of 2011, when the currency began to adopt mainstream attention. The price has been extraordinarily volatile -- it lost more than 90 percent of its value between June and October 2011, for example. But there's also been an unmistakable upward trend. Notice that the chart is on a logarithmic scale. It shows the currency's value rising from around $0.30 at the start of 2011 to around $600 today. There are almost 12 million bitcoins in existence, so the Bitcoin "money supply" is now worth around $7 billion.

Bitcoin has captured the imagination of venture capitalists. A startup called Bitpay, which processes Bitcoin payments on behalf of vendors, raised more than $2 million earlier this year. Coinbase, a startup that helps consumers buy and sell bitcoins, has raised $5 million. And last month, a Bitcoin startup called Circle raised $9 million.

Why are people so excited? Bitcoin enthusiasts believe that Bitcoin's peer-to-peer architecture and low barriers to entry will allow the creation of a new generation of innovative financial services, in much the same way that the Internet's open architecture led to innovative new online services. There are also many Bitcoin fans who see the currency as an antidote to the inflationary tendencies of central banks, though, as we'll see later, this argument for Bitcoin is misguided.

3. This just sounds like a bubble. Do people use the currency for anything besides speculation?

I just mentioned Bitpay. It provides a good sign of Bitcoin's growing popularity for "real" transactions. In September 2012, the company announced that it had signed up 1,000 merchants to use its service for accepting Bitcoin payments. Just a year later, the company said, it passed 10,000 merchants.

Bitpay works with a wide variety of merchants. Some sell online services like Web hosting or virtual private networks. Others sell jewelry and electronics. There are even restaurants and cupcake shops that sell their wares for bitcoins.
And yes, Bitcoin has significant illicit uses. Programs like Satoshi Dice allow people to gamble online. Until recently, a Web site called Silk Road helped dealers sell millions of dollars of illicit drugs.

It's hardly unusual for new payment technologies to attract illicit use. Pornography was a big draw for both the first VCRs and the early consumer Internet. New payment technologies often attract criminals looking for new ways to move their funds without government scrutiny.

Another application for bitcoins that is expected to become more important in the future is international payments. Right now, wiring money internationally involves slow, expensive and inconvenient services like Western Union. Bitcoin is international, and its fees can be much lower than conventional wire transfer services. There's still work to be done to make such a system affordable and user-friendly. But it has the potential to disrupt the international payment industry.

4. Who created Bitcoin?

No one knows for sure. The currency was created by a person who indentified himself as "Satoshi Nakamoto." While the name sounds Japanese, Bitcoin's creator never provided any personal details. He collaborated with other early Bitcoin fans through online forums but never met with other members of the Bitcoin community face to face. Then, starting in 2010 he gradually reduced his involvement in the currency's development. His last known communication came in 2011.

We don't know who Satoshi Nakamoto is, but we do know that if he ever surfaces, he will be an extremely wealthy man. Millions of bitcoins were created in the currency's first two years, and Satoshi likely owns hundreds of thousands of them. At today's prices, he would be a millionaire many times over.

Before leaving the scene, Nakamoto passed his torch to a mild-mannered developer named Gavin Andressen, who is currently the project's lead developer. Andressen now works under the auspices of the Bitcoin Foundation, the closest thing the anarchic Bitcoin community has to an official public face.

5. Where do bitcoins come from?

In a conventional financial system, new money is created by a central bank, such as the Federal Reserve. But the Bitcoin network doesn't have a central bank. So the system needed an alternative mechanism for introducing currency into circulation.

Bitcoin's designer solved this problem in a clever way. As I said above, hundreds of computers scattered around the Internet work together to process Bitcoin transactions. These computers are called "miners," and Bitcoin's transaction-clearing process is called "mining." It's called that because every 10 minutes, on average, a Bitcoin miner wins a computational race and gets a prize. Currently, that reward is 25 bitcoins, worth around $12,500. These prizes provide a strong incentive for more people to join in Bitcoin's transaction-clearing process, helping the currency to remain decentralized.

This reward declines on a fixed schedule: Every four years the reward falls by half. So, from 2009 to 2012, it was 50 BTC, now it's 25 BTC, and starting in late 2016 it will fall to 12.5 BTC, and so forth. If you do the math, you'll find that there will never be more than 21 million bitcoins in circulation. Right now, there are almost 12 million bitcoins in ciruclation, so the Bitcoin money supply will never be more than twice its current size.

6. Isn't that a huge problem? I learned in economics class that deflation can cause economic problems.

It's true that deflation has traditionally been associated with economic problems, but there's little reason to think this will be a problem for Bitcoin. That's because deflation is only a problem if it is what economists call a "unit of account" for a nation's economic system.

Right now in the United States, salaries, mortgage payments, rents and other long-term financial commitments are priced in U.S. dollars. As a result, if the value of the dollar rises unexpectedly, these "sticky prices" can cause severe economic distortions. Unable to cut wages, employers have trouble making payrolls. Unable to renegotiate their debts, homeowners have trouble making their mortgage payments. Tenants get stuck with rents they can't afford. The result is a recession.

Hardly anyone uses Bitcoin as a unit of account. You'd be insane to sign a contract promising to repay a loan of 100 BTC in 10 years or to take a job where your salary was priced in bitcoins. Even the Bitcoin Foundation, which pays its employees in bitcoins, still sets its employees' salaries in dollars, converting employees' dollar-based salaries into the corresponding number of bitcoins on each payday. As a result, fluctuations in the value of bitcoins don't cause the kinds of economic disruptions that fluctuations in the value of traditional currencies do.

7. How do I get bitcoins?

One option is to mine them yourself, but that's not a good choice for beginners. For everyone else, your best bet is to purchase them with a conventional currency. Web sites known as exchanges will let you trade bitcoins for conventional currencies with other users. Even more convenient are companies like Coinbase, which will withdraw cash from your bank account and convert it to bitcoins at the current exchange rate. A few Bitcoin ATMs are popping up, which will directly trade paper money for Bitcoins. Here's a video of someone using a Bitcoin ATM in Vancouver:
 




8. Okay, I bought some Bitcoins. Now what?

Next you'll need a place to store them. Bitcoins are stored in "wallets," which in this case are just files that contain encryption keys, or secret codes that allow you to transfer your bitcoins to other people. There are several options. One is to store them yourself using one of the Bitcoin programs available for Mac, PC and Android.

Another option is to entrust them to a third-party Web site known as a "online wallet."

A third option is what's known as a "paper wallet," where you print out your encryption keys and store them in a safe place, such as a safe deposit box.
Each has risks. If you choose to store your bitcoins yourself, then you could lose them to a hacker, a hard drive crash or a lost mobile device. But if you choose to use a third party, you need to worry about that third party swindling you or becoming bankrupt. The Bitcoin market is largely unregulated, so there are few legal protections if you happen to choose the wrong online wallet service. Paper wallets avoid the pitfalls of other methods, but they're tricky to set up correctly, and of course you're out of luck if you lose the piece of paper.

9. Okay, I have some bitcoins and found a secure way to keep them. What do I do with them now?

There are thousands of Bitcoin merchants online who will sell you everything from jewelry to electronics to illegal drugs. You can also spend bitcoins in "real life." To spend them in person, you need a Bitcoin mobile app. Generally, the store you're buying from will show you a QR code representing the Bitcoin transaction. You then scan that QR code with your phone, and the mobile app will send the required number of bitcoins to the store. Then you walk out the door with your purchases.


Of course, right now the options for face-to-face Bitcoin transactions are rather limited. Earlier this year, Kashmir Hill of Forbes lived on Bitcoin for a week. Because she lived in tech-savvy San Francisco, she was able to find enough Bitcoin-accepting merchants to get by, but just barely. So Bitcoin is far from being a practical currency for day-to-day use.

10. Should I buy bitcoins?

Probably not. There are two reasons you might want to buy bitcoins: to purchase goods and services or for speculation.

Right now Bitcoin isn't a very practical payment technology for ordinary users. The software is too complicated, and the risk of loss due to hackers, forgotten passwords, hard drive failures and so forth are too large. Also, Bitcoin is extremely volatile right now, so your wallet could go from having $100 worth of Bitcoins one day to $50 the next. And right now, as Hill discovered, the technology just isn't used widely enough to make it a useful option to have in your pocket or purse. For most people, conventional payment technologies like credit cards are going to be more convenient.

What about speculating on Bitcoin? Once again, the currency probably isn't a good choice for ordinary users. The security and reliability risks of Bitcoin loom much larger if you invest thousands of dollars in the currency. You don't want to run the risk of losing thousands of dollars because you forgot a password or had an unexpected password failure. And the currency is extremely volatile. It might keep going up, but it could also lose 90 percent of its value next week. In other words, you should only jump on the bandwagon if you have a strong stomach.

11. If people shouldn't buy bitcoins, then what is all the fuss about?

Once again, the analogy to the Internet is instructive. Until the 1990s, the Internet wasn't a practical technology for ordinary folks to use, either. It used complicated text-based programs, and you had to be a computer expert to use it effectively.

But it would have been foolish for an observer in 1990 to dismiss the Internet as too nerdy for mainstream use. Over time, entrepreneurs took the basic infrastructure of the Internet and built innovative and user-friendly online services such as Google, Facebook and YouTube.

Bitcoin boosters are betting that the same will happen with Bitcoin. The "raw" bitcoin network isn't very accessible, but startups like Coinbase and Bitpay are slowly fixing that. Some day soon, someone may develop Bitcoin's "killer app," a program that provides a financial service that has clear advantages over conventional banking. That might be an international money-transfer network with lower fees, a practical system for online micropayments, or something else that no one has thought of before.

12. Could bitcoins ever replace conventional money?

It's possible, but it doesn't seem very likely. People want to use the currency that most other people use, and in the United States that's going to be US dollars for the foreseeable future. And that's a good thing: if Bitcoin became the standard currency of the US economy, then its fixed money supply would create a serious risk of the next economic downturn snowballing into a depression.

However, there could be a lot of room for Bitcoin to complement conventional financial networks. After all, Paypal gained traction because the conventional financial networks of the day weren't meeting all of users' needs. Bitcoin's open architecture could allow it to be even more disruptive. People are unlikely to ever eschew conventional financial networks altogether, but there could be a substantial market for Bitcoin-based services that perform certain services more effectively or affordable than conventional alternatives.

Related content:

Bitcoins needs a central banker

WATCH: Bitcoins: Coming soon to a campaign near you?


Sunday, January 5, 2014

The right’s Benghazi insanity reaches new depths



SALON



The right’s Benghazi insanity reaches new depths

No amount of facts can convince the right of reality. Here's how politics, racism and sexism guide their lunacy



 
The right’s Benghazi insanity reaches new depthsLou Dobbs, Hillary Clinton (Credit: AP/Kathy Willens/Pablo Martinez Monsivais)
 
 
Hands down the biggest news story of the 2013 holiday season was the New York Times opus on the 2012 Benghazi attack. The Dec. 28 story debunked every single right-wing conspiracy peddled by Fox News (and also promulgated briefly by CBS News’ “60 Minutes”): the attack was, in fact, heavily motivated by an anti-Islam movie, as the Obama administration claimed; its militia ringleaders were independent of al-Qaida, and there was nothing the administration or Hillary Clinton’s State Department could do to protect the four men who died at the underdefended Benghazi compound.

Given the holiday, you may have missed the story. The folks at Fox may as well have. They continue to push their old lies: that the tragedy was the result of Obama and Clinton ignoring the growing al-Qaida threat in Libya and the danger to Ambassador Chris Stevens and his staff. When Fox bothered to acknowledge the Times’ work, it has been only to accuse the paper of carrying water for the administration, and specifically, for Hillary Clinton.

Charles Krauthammer insisted the Times piece was all about protecting Clinton’s 2016 presidential chances. “The reason that Times invested all the effort and time in this and put it on the front page is precisely a way to protect the Democrats, to deflect the issue, to protect Hillary, who was exposed on this issue with almost no issue in her tenure in the administration,” he said Monday. “It is obviously a political move.”

To be fair, the Times story had critics beyond Fox: the Daily Beast’s Eli Lake continued to peddle the story that al-Qaida played a key role in the Benghazi bloodshed.

But Fox Business hit a new low Thursday, when Lou Dobbs hosted former CIA analyst Michael Scheuer to attack the Times’ work. Scheuer became famous critiquing the Bush administration’s war on terror in his book “Imperial Hubris,” which he first published anonymously. But he’s reached new depths attacking Obama.

In a Dec. 23 column on Obama’s tyranny, he effectively advocated the president’s assassination, quoting Algernon Sidney on what should happen to tyrants: “by an established law among the most virtuous nations, every man might kill a tyrant, and no names are recorded in history with more honor, than of those who did it.”

Scheuer also managed to work in racism, sexism and xenophobia, insisting Obama and Attorney General Eric Holder are protected because “the impeachment provisions of the Constitution are a dead letter; that they apply only to individuals named Nixon; or that they do not apply to black Americans supported by such towering giants of fatuousness as Oprah, Chris Matthews, Fareed Zakaria, Piers Morgan, and Hillary Clinton and her motley band of Viragos.”

David Frum argued that “Scheuer’s meltdown” would once and for all discredit him and keep him off the airwaves – Frum charges liberals with looking away from Scheuer’s extremism and anti-Semitism back when he was a Bush critic, and he has a point.

But Frum was wrong: Dobbs invited Scheuer to weigh in on the Times’ Benghazi scoop, and he came through for the Fox Business host, insisting Clinton “has blood on her arms up to her elbows for not being willing to protect the people who are representing us in Libya” and thus “killed those Americans and [the Times editors] have to kill that story or it is going to become mainstream for 2016.” (h/t Media Matters.)

Clearly the right’s Benghazi fever will not be cured by facts. Obama and Clinton’s critics are so adept at projection that they imagine the New York Times is motivated by the same sort of political agenda that drives Fox’s news coverage, only for the other team. I enjoyed managing editor Jill Abramson dismissing Fox’s charges as “ridiculous,” without elaboration.

The truth is, the Times piece was not without criticism of the administration’s efforts in Benghazi. It found that the attack’s leaders had benefited from American weaponry and support while fighting Moammar Gadhafi, and suggests that while the strike on the compound “does not appear to have been meticulously planned, neither was it spontaneous or without warning signs.”

The Benghazi tragedy, David Kirkpatrick wrote, “shows the risks of expecting American aid in a time of desperation to buy durable loyalty, and the difficulty of discerning friends from allies of convenience in a culture shaped by decades of anti-Western sentiment.”

That raises thorny questions of national security that demand serious bipartisan debate. But the usual suspects on Fox and within the GOP leadership continue to believe they have a way to disqualify Hillary Clinton from becoming president, and it will take much more than facts to convince them otherwise. 
Joan Walsh Joan Walsh is Salon's editor at large and the author of "What's the Matter With White People: Finding Our Way in the Next America."

Saturday, January 4, 2014

Top 10 Proofs People Can Be Completely Manipulated without Hypnosis


Dissident Voice: a radical newsletter in the struggle for peace and social justice

Top 10 Proofs People Can Be Completely Manipulated without Hypnosis

1. Any article listing the top 10 of anything will be widely read.

2. A poll of people in 65 countries, including the United States, finds that the United States is overwhelmingly considered the greatest threat to peace in the world. The consensus would have been even stronger had the United States itself not been polled, because the 5 percent of humanity living here is largely convinced that the other 95% of humanity — that group with experience being threatened or attacked by the United States — is wrong. After all, our government in the U.S. tells us it’s in favor of peace. Even when it bombs cities, it does it for peace. It’s hard for people under the bombs to see that. We in the U.S. have a better perspective.

3. Polls in the United States through the 2003-2011 war on Iraq found that a majority in the U.S. believed Iraqis were better off as the result of a war that severely damaged — even destroyed — Iraq.1 A majority of Iraqis, in contrast, believed they were worse off.2 A majority in the United States believed Iraqis were grateful.3 This is a disagreement over facts, not ideology. But people often choose which facts to become aware of or to accept. Tenacious believers in tales of Iraqi “weapons of mass destruction” tended to believe more, not less, firmly when shown the facts. The facts about Iraq are not pleasant, but they are important. To believe that the people who live where your nation’s government has waged a war are better off for it, despite those people’s contention that they are worse off, suggests an extreme sort of arrogance — and a misplaced arrogance because you’ve just proven that a few slick politicians can make you believe up is down.

4. According to U.S.ians the greatest threat to peace on earth is a nation that hasn’t threatened any other, and hasn’t attacked any other in centuries, a nation that suffered horrible chemical weapons attacks and refused to use chemical weapons in response, a nation that has refused to develop nuclear weapons but been falsely accused of doing so by the U.S. government for decades. That’s right: a bit of laughably bad propaganda, regurgitated in variations for 30 years, and the smart critical thinkers of the Land of the Free declare a nation with a military budget below 1% of their own — Iran — the Greatest Threat to Peace.4 Edward Bernays is cackling wickedly in his grave.

5. Because no cartoon character has ever been named after Edward Bernays, nobody’s ever heard of him.

6. In poll after poll after poll, 75% to 85% in the United States say their system of government is broken. Yet, what remains the top piece of advice to agitators for change? That’s right: “Work within the system.” And what remains the fallback ultimate reliable justification for launching or escalating or continuing a war: That’s right: “We need to bring our system of government to others.”

7. When U.S. military spending begins to inch below $1 trillion a year, military-friendly journalists declare the weapons lobby dead.  When it begins to inch back slightly above $1 trillion a year, slightly less military-friendly journalists declare the weapons profiteers alive but struggling. In both scenarios the level of spending remains roughly $1 trillion and the difference between the high end and the low end, while greater than most other public programs will ever see, is less than the Pentagon “misplaces” in an average 12-month period.

8. On Tuesdays, President Barack Obama goes through a list of men, women, and children, picks which ones to have murdered, and has them murdered. Knowing this would conflict with hating exclusively a particular sub-group of our public sociopaths, so most people simply choose not to know it.

9. If Iraq had really had those weapons, and if Syria had demonstrably really killed a small number of its victims with the wrong type of weapons, and if Iran were really building nuclear weapons, . . . then launching wars on those countries would still be illegal, immoral, and disastrous. We all have opinions about the question the warmakers want asked, but not about the insanity that lies behind the question.

10. People have been dying since before recorded history, and yet only those who pretend to believe nobody dies can be considered serious, honest, upstanding folk. That there’s another longer life helps us not worry so much about getting screwed during this one. Perhaps it also helps us in allowing our “representatives” to routinely end the lives of so many foreign, and thus ignorant, people.
  1. The last such poll may have been Gallup in August 2010. []
  2. Zogby, Dec. 20, 2011. []
  3. The last such poll may have been CBS News in August 2010. []
  4. Check out Gareth Porter’s forthcoming book, Manufactured Crisis: The Untold Story of the Iran Nuclear Scare. []
David Swanson is an anti-war activist and blogger at War Is a Crime. Read other articles by David.

Friday, January 3, 2014

CIA Blocks More Inquiries




 

CIA Blocks More Inquiries

QQ截图20140102185912


In a recent New York Times article about efforts by the Senate Intelligence Committee to get its hands on (and perhaps release?) an internal report on torture that the CIA doesn’t want to turn over, the author mentions in passing the pending nomination of Caroline D. Krass to be the top lawyer at the Agency.

He then notes that:

Ms. Krass is a ca­reer gov­ern­ment law­yer who works at the Jus­tice De­part­ment’s Of­fice of Le­gal Coun­sel, the arm of the de­part­ment that ad­vis­es the White House on the le­gal­ity of do­mes­tic and for­eign poli­cies.

The of­fice was par­tic­u­lar­ly con­tro­ver­sial dur­ing the Bush ad­min­is­tra­tion, when lawyers there wrote lengthy mem­os ap­prov­ing C.I.A. in­ter­ro­ga­tion meth­ods like wa­ter­board­ing and sleep dep­ri­va­tion, as well as sign­ing off on the ex­pan­sion of sur­veil­lance by the Na­tion­al Se­cu­rity Agency.

That is very useful information, worthy of its own article.

Because the move of Krass from OLC to CIA is highly suspicious. After all, they’re taking someone from the very heart of the cover-up over torture at the Agency and putting her in charge of… legal blocking of inquiries into CIA actions.

This would not be the first time in recent memory that an organization that is all about subterfuge has moved to prevent the truth from getting out by shuffling key personnel between it and other parts of the Executive Branch. In another instance, the CIA last year sent Sheryl Shenberger, who had served as a branch chief in the CIA counterterrorism center between 2001 and 2003, to be in charge of declassification of documents at the National Archives. Bet that she hasn’t rushed to make available documents pertaining to the September 11 attacks.

The Times article, published under the dull headline, “Senate Asks C.I.A. to Share Its Report on Interrogations,” unsurprisingly does not seem to have made any waves. And we have not noticed anyone else drawing attention to the buried sub-narrative about Krass’s new appointment.
If these kinds of congressional committees are serious about actually representing the interests of the American people, after years of failures on that front, they might start by taking a closer look at dodgy- looking personnel moves.

Thursday, January 2, 2014

Mitt Romney Being Sued For Racketeering In Federal Court






Liberals Unite



Mitt Romney Being Sued For Racketeering In Federal Court


Screen Shot 2013-12-30 at 10.18.37 AM




One of the most ignored stories in the mainstream media will surely be coming to a television screen near you once the court proceedings commence. That lawsuit is none other than racketeering charges leveled against one Willard “Mitt” Romney and his co-defendants in Haas v. Romney.


Filed on October 18 in Los Angeles, CA, in an ironic twist of fate it was decided on November 6, the one-year anniversary of Romney’s loss to Barack Obama, that the lawsuit could go forward.

eToys executive Steven “Laser” Haas and his company, Collateral Logistics, Inc., was the court appointed fiduciary charged with overseeing the liquidation of eToys. Haas filed the suit after discovering multiple frauds while in the process of liquidating the company. In his affidavit to the Securities and Exchange Commission dated August 3, 2012, Haas charges, among other things, that he was offered $850,00 by Bain Capital to keep quiet about irregularities he uncovered.

He is suing the defendants for $100 million in an effort to recoup the losses incurred by him and the other victims of the alleged fraud.
Several steps are necessary as the lawsuit goes forward. In a lengthy and sorely in need of an edit article written by Haas for the Daily Kos, he lists the procedural necessities:
Haas notes that the Court denied his request for the U.S. Marshal’s Office to serve the summons on legal grounds, but that notwithstanding, the case will go forward. It is up to Haas to find the means to have the summons served to the parties involved by February 16. He is gleeful at the prospect.

There are allegations of murder and mayhem in addition to the breaking of federal racketeering laws.

The case number is 2:13-cv-07738 and will be tried in the Los Angeles Division of the Federal District Court, located on Spring Street in downtown Los Angeles.

Stay tuned.

Additional references:

http://theobamacrat.com/2013/12/07/willard-mitt-romney-bain-capital-sued-for-rico-in-federal-court/comment-page-1/#comment-94214
http://stellionata.com/in-the-news/8598-racketeering-lawsuit-haas-v-mitt-romney-going-forward
Update from Haas:
http://www.dailykos.com/story/2013/12/23/1264888/-Haas-v-RICO-Romney-Huge-Case-But-Haters-Are-Nixing-Merits-Debates

Ann-SM
Ann Werner is a blogger and the author of CRAZY and Dreams and Nightmares. You can view her work at ARK Stories.
Visit her on Twitter @MsWerner and Facebook

Tuesday, December 31, 2013

The RNC Wrote A 100-Page Autopsy, But Apparently Nobody Read It


politics




The RNC Wrote A 100-Page Autopsy, But Apparently Nobody Read It

Posted:   |  
Updated: 12/31/2013 10:53 am EST
Earlier this year, the Republican National Committee put together a team of experts to pore over what lessons there were to learn from the GOP's electoral defeats in 2012. Together, they compiled what is officially termed the "Growth And Opportunity Project," but what has become colloquially known -- due to its thanatological study of the corpse of Mitt Romney's campaign -- as the "RNC autopsy." Call it what you like, the RNC insisted that it was "the most comprehensive post-election review" ever undertaken, and at 100 pages, we're not inclined to quibble.

Over the course of those 100 pages, the report’s authors offered up a number of urgent “bottom line” thoughts on the state of the party after 2012. One of the most firmly stated admonitions cautioned against insular thinking: “The Republican Party has to stop talking to itself.”
Indeed, that’s solid advice for anyone who’s been long trapped in the bubble of “This Town.” But the question, one year on from the publication of this report, is whether or not the Republican Party has started listening to its own advice.

Those who produced the after-action report definitely took a soup-to-nuts approach, devoting their energies to matters both philosophical and practical. The RNC got deep into the weeds on how to operate better in the modern campaign finance environment, took on the tremendous deficits the party endured in terms of campaign technology, and made a critical dissection of the party's entire primary process. There was also tremendous emphasis on reaching out to demographic groups that have lately found it all too easy to spurn the GOP's advances.

Now that we've reached the end of the first post-autopsy year, however, it may be worth it to take a look back and see how the Republican Party is doing, following the strictures set down in the "Growth And Opportunity Project." Let's just pull one especially urgent-sounding order out of the autopsy, totally at random, shall we?
As stated above, we are not a policy committee, but among the steps Republicans take in the Hispanic community and beyond we must embrace and champion comprehensive immigration reform. If we do not, our Party’s appeal will continue to shrink to its core constituencies only. We also believe that comprehensive immigration reform is consistent with Republican economic policies that promote job growth and opportunity for all.
Oh, hey, whoops, I guess?

Here's a fun fact: Florida Sen. Marco Rubio was, at one point, thought of as a top prospect for a 2016 run. The RNC autopsy, in fact, quotes him as a wise elder high up in the report: “What people who are struggling want more than anything is a chance -- a chance to make it in life.” After a year of suiting up in a flak jacket to confront right-wing radio talkers who opposed Rubio and his "Gang Of Eight" on immigration reform, it's Rubio whose chances are diminished. Remember how Texas Gov. Rick Perry made an impassioned case for treating immigrants humanely, based on years of practical experience as a border state governor, only to get repeatedly kicked in the teeth for it? History repeats itself.

As we come to the end of the year, the future of comprehensive immigration reform looks as uncertain as ever. House Republican leadership continues to sit on the comprehensive bill passed by the Senate, and while Senate Majority Leader Harry Reid is suggesting that House Speaker John Boehner is close to caving, all the chit-chat out of Boehner's camp is indicating that he'll likely stand pat against anything other than a piecemeal approach. Meanwhile, this year's thorn in Boehner's side, Texas Sen. Ted Cruz, is urging his fellow Republicans to block any immigration reform efforts.

Cruz, who's criticized his fellow Republicans for training "cannon fire" at one another even as he's kept his own howitzers warm, has been a one-man wrecking ball against the efforts of the RNC's "Growth And Opportunity Project." Even as he's served as the vice chair of the National Republican Senatorial Committee, he's raised the profile of the Senate Conservatives Fund and used that perch to harangue his colleagues for what he's perceived as a lack of purity. He hasn't even endorsed Texas Sen. John Cornyn, the head of the NRSC, who's facing a primary in Cruz's home state!

This isn't what the RNC wanted after 2012. The "Growth And Opportunity" report goes on at great length about the need for the RNC and its "Friends And Allies" (by which the report means right-aligned third-party groups) to forge a more positive working alliance. "The RNC is the only entity that can effectively lead on issues and messaging," says the report.

Those "Friends And Allies" didn't get the message. All year, outside groups like Heritage Action and Club for Growth have laid down their own law in terms of messaging, leading the GOP into one morass after another. Things finally came to a head in mid-December, when Boehner -- hoping to shepherd through the budget deal wrought by House Budget Committee Chairman Paul Ryan (R) and Senate Budget Committee Chairwoman Patty Murray (D) -- finally hit the roof.

It's hard to fault Boehner for his reaction. As HuffPost's Sabrina Siddiqui reported, "Heritage Action and Americans for Prosperity stated their opposition to the Murray-Ryan budget deal before it was even announced, while Club for Growth urged members to vote against it moments after the deal was made public." That flew in the face of one of the RNC's big recommendations: "Republican organizations need to understand that all of this will work better if they will all participate in these discussions and play their respective roles." At the end of 2013, it's pretty clear that this spirit of participation and discussion has failed to take root.

Of course, it would be inaccurate to suggest that the GOP hasn't made some not-insubstantial progress in righting the ship. As CNN's Peter Hamby reported, the RNC has an entirely new vision for the primary process that includes fewer debates, a more tightly disciplined state primary process and an early convention to help save its future presidential candidate from operating at a financial disadvantage. After the wretched excesses of the 2012 primaries, these are reforms worth welcoming. Though the law of unintended consequences still applies: Will the new process limit the effectiveness of grassroots-driven campaigns like the one Ron Paul ran in 2012? Will there still be enough debates for a low-budget candidate, like Rick Santorum, to have a puncher's chance at the nomination?

And when a nominee is crowned, will the candidate benefit from cutting-edge campaign mechanics? That was one of the RNC's under-sung goals in developing this post-2012 plan -- the need to build a smarter, data-driven, reality-based campaign with top-flight digital infrastructure. Around the same time the RNC was putting its report together, The New York Times' Robert Draper was making the rounds of disaffected GOP campaign technologists and pointing out how downright surreal it was to ponder the sort of talent that the Republican Party left on the sidelines in 2012.

How is the progress on that front? As Real Clear Politics' Adam O'Neal reported last week, progress is being made, but the GOP is still essentially "playing catch-up." The lag was especially prominent in this year's Virginia gubernatorial race:
DNC spokesman Mike Czin told RealClearPolitics that though he has “no doubt that Republicans are making investments and really spending time trying to figure out how to do this,” they are still lagging behind. Czin pointed to the Virginia gubernatorial race as proof that GOP investments in this effort have not yet paid off. A few weeks before the election, Republican Ken Cuccinelli’s campaign sent out an e-mail asking those interested in volunteering to reach out again because “sometimes things fall through the cracks.”
“That tells me that whatever investments they’re making weren’t being used by the biggest targeted, competitive race of the year,” Czin said of the contest won by Democrat Terry McAuliffe.
Of course, the race for Virginia's statehouse cast more of the problems cited in the GOP autopsy in sharp relief. After all, the Republicans ended up with a pair of radical weirdos -- Virginia Attorney General Ken Cuccinelli and conservative pastor E.W. Jackson -- on the top of their ticket. Both of those guys became the GOP's standardbearers in Virginia as a result of the state party's decision to make their nominations at a state convention instead of through a primary -- something that the autopsy specifically warned against: "It would be a mistake to circumvent voters and hand-pick our nominees ... voters when given choices will pick better candidates."

If we can linger a little longer in the Commonwealth of Virginia and on its governor's race, which the GOP surmised was an eminently winnable thing given the quality of the Democratic candidate, you can see multiple examples of urgings from the autopsy that went unheeded:
Already, there is a generational difference within the conservative movement about issues involving the treatment and the rights of gays -- and for many younger voters, these issues are a gateway into whether the Party is a place they want to be.
Women are not a “coalition.” They represent more than half the voting population in the country, and our inability to win their votes is losing us elections.
So yeah, maybe the fact that the Republicans' high-profile candidate in Virginia championed transvaginal ultrasounds and the criminalization of sodomy should be seen as something of a setback.

Efforts are being made to improve the GOP's standing with a lot of demographic groups that have shunned Republicans of late. We've learned, for example, that aides to GOP incumbents are getting trained on how to speak to women. It's not clear that this necessarily involves eliminating from their collective unconsciousness the sort of weird beliefs that caused Missouri Rep. Todd Akin's Senate ambitions to founder or just becoming savvy enough to never enunciate those beliefs out loud, but it is, one supposes, a start.

Or if you prefer, a start among fits. After all, it was the RNC that declared racism to be over in a tweet commemorating Rosa Parks this year, despite the autopsy's admonition that the Republican Party needed to do more to engage with the African-American community in a manner that spoke to a "mutual respect." It would also help if the GOP would curtail some of its more flamboyant efforts to keep the African-American community from voting. A lonely Wisconsin Rep. Jim Sensenbrenner might lead the way on that, if his party would let him.

The RNC's report also rather forcefully called for a populist retrenchment: "We should speak out when a company liquidates itself and its executives receive bonuses but rank-and-file workers are left unemployed. We should speak out when CEOs receive tens of millions of dollars in retirement packages but middle-class workers have not had a meaningful raise in years." One might scoff at that a little louder were it not for the fact that well-heeled Democratic groups like Third Way have lately urged their party to kick the middle class to the curb.

Overall, these Republican outreach efforts remain a work in progress, and the ironic thing is that 2014's political realities may leave it so for the near future. After all, as dire as this report was in characterizing the deficits that undercut the GOP's 2012 efforts, the Republicans are nevertheless in healthy shape, fundamentally speaking, going into the 2014 midterms. Post-Census redistricting and the tendency of Democratic voters to congeal in large populations in urban districts, combined with the Democratic Party's traditional troubles in turning out the vote in midterm elections, make the possibility of a "wave" election that would undo right-wing hegemony in the House of Representatives extremely remote, and it will take a substantial effort just for the Democrats to maintain a slim majority in the Senate.

As the Democrats' 2014 message starts to take shape, it's hard to see anything in the offing that might catalyze a shift in these fundamentals. Right now, the White House and its Democratic allies are banking on Obamacare functioning as planned come the fall of 2014. It's an open question whether or not it will, but at this point, they're all-in on their Obamacare wagers. Should they pay off, Democrats will look back at 2013 -- the bungled rollout, President Barack Obama's poll numbers -- as simply "paying the cost to be the boss."

Elsewhere, Democrats are whistling about an approaching dawn in America's economic conditions, in the hopes that they might get credit for something that ends up feeling, authentically, like being out of the woods. It's something to hope for, but as they say, hope is not a plan. If you cast your mind back to the last time anyone spoke of a "Recovery Summer," it was ahead of the 2010 midterms. How did those work out again?

All of which is to say that, for the moment, the Republican Party doesn't even need to heed the recommendations of the RNC report. As noted above, Ted Cruz is essentially characterizing the effort to mitigate the problems of 2012 as something that would squander the tremendous opportunities the GOP might reap next year.

The question, of course, is whether or not running the sort of ideological campaign that Cruz might prefer in the midterms would make it harder to win in 2016, when the fundamentals of the Electoral College arguably flip in favor of the Democrats. One of the costs of tea party domination in 2010 was that by the time the presidential cycle had rolled around again, the GOP's brand was so far to the right that many of the party's most talented candidates stayed out of the game, rather than get mixed up in their party's extravagant extremes. That's a factor that the RNC did fail to grapple with in its "autopsy." It remains the largest potential reason that Republicans may have cause to pen another one. Which won't need to be heeded either.

Sunday, November 17, 2013

39 House DINOs Helped Crush ACA Requirements in a Critical Vote



Taking Back the House in 2014
 

39 House DINOs Helped Crush ACA Requirements in a Critical Vote



more from Dennis S
 
Sunday, November, 17th, 2013, 9:57 pm


 
187865218

In addition to weddings, births, other seminal personal and family events and your job, the most important non-family date in your life will be November 4, 2014. That’s when all of the 435 House of Representatives races are up for grabs and 33 of 100 U.S. Senate seats.

The senators will be elected to serve six-year terms expiring January 3, 2021. In averaging the world of political guru educated guesses, there are 10 safe Republican seats and 6 safe Democratic seats. That leaves 17 seats essentially vulnerable, a highly dangerous scenario when a Senate majority is an imperative for Democrats to continue to play defense.

On the House side, the Democrats are still reeling and paying for the 63-seat debacle of 2010, handing the Republicans an historic 49-seat margin that they’ve abused beyond comprehension. Prior to 2010, Democrats prevailed 257-178. The Republican post-2010 advantage was narrowed to 33 seats after the 2012 vote, but it’s still substantial enough to bring every Democratic initiative to a screeching halt and still manage to blame the President for no progress in Washington. Since a second-term President’s party generally gets clobbered by just under 30 seats in the mid-terms, it will take a Herculean effort to win enough House seats to save the sinking federal ship.
Most pundits see small Republican 2014 House gains of a half-dozen seats at most, but that still sustains an unyielding 40 seat, give or take, majority through the remainder of the 113th, not counting the wild card of a growing number of suddenly-emerging DINO dandy’s.

Ousting incumbents will still be about as rare as a day without a Kardashian story, but it can be done (reference 2010 above).

Here are the barricades the Republicans have erected in red states to maintain their grip on the House where sympathetic right-wing legislators can keep their pledge to the Koch brothers and multinationals that no meaningful taxes, regulations or oversight will find their way out of committee.
The Chinese water-torture dismantling of the Affordable Care Act will also prevail unabated with one-sided trade outs essentially gutting the intent of the legislation and handing all the power to insurance companies and pharmaceuticals. The latest deadly indignities are two-fold. A flummoxed president has now indicated that Americans should be able to renew their current coverage that is either canceled or soon to be cancelled. That’s because everybody just adores their current coverage, huge deductibles, giant premiums and pee wee insurance payments to providers notwithstanding.

For their part, the giants are now cleverly using the president’s generosity to warn of increasing premiums because some insurance companies already meet the requirements, some don’t. So, for some reason, that’s going to “destabilize the market.” Say Whaaa…?

Wasting no time in bowing to their masters, the House members rushed through a bill allowing nonstandard coverage. The Teapublicans were joined by 39 DINOs, apparently convinced that screwing constituents out of wonderful new benefits in their health coverage represented a sure-fire way to get re-elected. Here is how California Democratic Representative Henry Waxman described the legislation, “It would take away the core protections of that law (ACA).”

These are some of the lost protections Waxman was talking about. No insurance if you have a pre-existing condition. Limits to what the insurer will pay annually and over the life of the policy. The ability to cancel if you get really sick. No preventive care. None of your young adult children under 26 allowed on your policy. No accountability for rate increases or any pressure to explain the small print and, frankly, I don’t know what the impact would be on the Health Insurance Marketplaces, another ACA mandate.

In exchange, it will cost the industry a ton in campaign contributions, but passage would earn them additional tens of billions in profits. What this does is take some of the shiny veneer off ACA come November 4th. That’s because millions will have signed on to the program by then (if the Marketplaces still exist) and these people will sing the praises of the policies abiding by the mandates. If you weaken and water down ACA, despite the likelihood of its passage being near zero (the Senate and a president’s veto stand in its way) ACA doesn’t get nearly the kudos and the blame again will be placed squarely on Obama and the Democrats. If the legislation does go down in flames look for the same strategy as repealing ACA, repeated identical bills brought to the floor over and over. And post-2014, if the Republicans manage to elect enough Senators to override, who in the hell knows?

Much of PoliticusUSA is designed to up the voter turnout through objective reporting and encouraging like-minded people to vote. Here’s the bottom line: If Democrats don’t turn out in massive numbers in 2014 and 2016, it appears that pre and post-2016, we’ll pretty much have what we have today, a gridlock of federal impotence. It’s not enough to depend on Independents and moderate Republicans, though those who do vote will undoubtedly give Democratic candidates a boost.

George Mason University has been home to the United States Election Project under the leadership of Dr. Michael McDonald. The findings are very revealing and offer proof that red states pass voting laws for the singular purpose of maintaining power by making it difficult for Democrats to vote.

Higher turnout is inevitable in states that feature reasonable voting laws such as election day registration. In the nine states that permit same day, all are above the national average in voter turnout. The same holds true for mail-in ballots where four of the five states with such a law exceed the national average. Two states, Oregon and Washington are the only states that vote universally by mail. That means no polls or election workers, just the Postal Service. No hard and fast percentages, but anecdotally I’m told that turnout is high. Montana was the last state that appeared to be signing off on vote-by-mail, but, according to the January 28, 2011 Billings Gazette, 15 state House members (all Republicans) reversed their “yes” preliminary votes to “no” at the last minute, something that’s not uncommon when considering the issue.

Learn about your local candidates. Our own Justin Baragona is running a highly informative series “Taking Back the House”, a critical analysis of all House districts and their candidates. I highly recommend you familiarize yourself with, at the very least, your district.

No matter how restrictive and redistricted unfriendly your state is to Democrats, rise above it by showing up to vote. Turnout can overcome any and all shady legislation the anti-American red states can come up with.

39 House DINOs Helped Crush ACA Requirements in a Critical Vote was written by Dennis S for PoliticusUSA.
© PoliticusUSA, Sun, Nov 17th, 2013 — All Rights Reserved