Public Intelligence Blog

Europe: For the record. German Chancellor Merkel and the European Council have changed in the last 48 hours from emphasizing austerity and the importance of adhering to agreements and goals to focusing on growth.

The two economic ideas are not mutually exclusive. Nevertheless, the growth has not been discussed in connection with south European sovereign debt. The rise of the socialists in France and the rejectionists in Greece seems to jolted the European bankers to consider potentially more innovative ideas about continental economic health besides “pay what you owe” policies.

The window of innovation will not last long because the debt exceeds the capacity to pay it down. The demographics of up to 50% unemployment among the most able cohorts of the work forces in Mediterranean European states defeat growth without statism. This is the threat.

NIGHTWATCH KGS Home

See Also:

Chuck Spinney: Why Doesn’t Spain Understand that Integrity is Priceless?

Chuck Spinney: Europe in Crisis Rule by Troika Spain and Hungary Next

Chuck Spinney: Financial Coups Destroying Europe

Chuck Spinney: German Economic Imperialism Killing Europe?

John Steiner: Iceland Defies Banks, Recovering Rapidly

Michel Bauwens: Michael Hudson on the crucial link between democracy and debt throughout history

Mini-Me: Iceland Breaks the Back of Western Banking

Mini-Me: Iceland Triumphs Over Banks, Western Governments Continue the Charade

NIGHTWATCH: Financial Crisis Now a Crisis of Fundamentals

Mini-Me: US Dollar Out, Yuan, System D, and Open Money In + Meta-RECAP

POGO Source Page, May 8, 2012

Wasteful Spending in the Department of Defense Budget
Wasteful Spending on Nuclear Weapons Programs
Service Contracts
Conclusion
Endnotes

Americans are tightening their belts, and it’s time for the U.S. government to do the same. In light of the Budget Control Act of 2011 and the subsequent failure of the “Super Committee,” Congress is still desperately seeking ways to reduce spending. To this end, the Project On Government Oversight and Taxpayers for Common Sense have closely examined the proposed national security budget[1] and found plenty of wasteful spending. Adjusted for inflation, U.S. national security spending is higher than at any point during the Cold War and accounts for more than half of all discretionary spending.[2] However, the U.S. faces no existential threats as it did then, and U.S. defense needs are changing as the military draws down its presence in Iraq and Afghanistan.

Still, military spending at the Department of Defense (DoD) has increased by an astounding 95 percent from FY 2001 to the FY 2013 estimate, adjusted for inflation.[3] Nuclear weapons spending at the Department of Energy (DOE) is projected to grow by billions of dollars over the next decade.[4] And the federal government’s reliance on contractors, most of whom work on national security-related work and cost on average nearly twice as much as the federal workers who do the same job, is also driving budgets through the roof.[5] It’s clear that any serious proposal to shrink the U.S. deficit must include cuts to the national security budget.

The following list updates our recommendations from 2011[6] and details nearly $700 billion in savings over the next ten years, including cuts to wasteful weapons systems as well as limits on out-of-control contract spending. We found programs for which there are cheaper yet equally effective alternatives, and programs that can be cancelled or delayed without putting America’s security at risk.

The Project On Government Oversight is a nonpartisan independent watchdog that champions good government reforms. POGO’s investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government.

Taxpayers for Common Sense is a nonpartisan budget watchdog serving as an independent voice for American taxpayers. Its mission is to achieve a government that spends taxpayer dollars responsibly and operates within its means. TCS works with individuals, policymakers, and the media to increase transparency, expose and eliminate wasteful and corrupt subsidies, earmarks, and corporate welfare, and hold decision makers accountable.

Wasteful Spending in the Department of Defense Budget

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Tom Atlee

A New Co-Intelligence Initiative: Let’s Talk: Our New Economy

David Isenberg

Chapter 12

David Isenberg

Huffington Post, 29 April 2012

After ten years of operation by private military and security (PMSC) contractors in Afghanistan and Iraq, what ethical lessons should we draw from their use?

Namely, that private sector contracting has become an integral part of modern international operations, and in Afghanistan and Iraq contracting has been largely fruitful, despite some well-publicized problems and the enormous difficulties inherent to reconstructions in the midst of violent conflicts.

At least, that is the view of Doug Brooks and Mackenzie Duelge, who co-wrote Chapter 12 in the book Conflict Management and “Whole of Government”: Useful Tools for U.S. National Security Strategy? which was recently published by the U.S. Army War College’s Strategic Studies Institute.

Considering that Chapter 12 is best known as a chapter of the U.S. Bankruptcy Code, the authors may have wished for another chapter number. On the other hand, considering the gap between some claims and evidence, perhaps it is appropriate.

Full article below the line.

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Who? Mini-Me?

Huh?

Exclusive: How Goldman Sachs Rigs the Game

Andy Rowell

SpinWatch, 20 March 2011

In light of Sunday Times’ revelations concerning MEPs being paid cash to place amendments on financial reform, a report published today by SpinWatch exposes financial lobbying in Brussels.

The report, entitled, Doing God’s Work: How Goldman Sachs Rigs the Game details Goldman Sachs’ secret lobbying activities in the UK and Brussels and links to politicians. It exposes:

The extensive links between Goldman Sachs and the Conservative Party;

* Political donations totalling £8.5million to British politicians in the past decade from Goldman and ex-Goldman people;

* Goldman Sachs’ immense lobbying machine in Brussels, including active membership of over a dozen financial sector lobby groups;

* Extensive meetings between Goldman Sachs and Conservative MEPs including: 9 meetings in six months with a key MEP on the Parliament’s Economics and Monetary Committee; and a total of 36 meetings between just four Tory MEPs and Goldman Sachs, its lobby groups or PR companies acting on their behalf;
* The bank’s lobbying campaign to undermine political reform on derivatives and alternative investment funds including: private dinners and unminuted “after office hours” meetings, high-level conferences and targeted campaigns to Commission officials, MEPs and their assistants;

* How Goldman Sach’s lobbyists tried to undermine amendments in a key report on derivatives, seen as “financial weapons of mass destruction”;

* The bank’s lobbying enabled them to gamble on food futures and drive up prices.

Report author, journalist Andy Rowell said: “A year ago, David Cameron said that lobbying was the next big scandal waiting to happen. This report shows that banks like Goldman Sachs – who are intricately connected to the Tories – continue to lobby to get what they want.”

Rowell continued: “The entire regulatory process – and the lobbying activity that surrounds it – has to become significantly more transparent and accountable. If it is allowed to be captured by bankers, the next financial crisis will only be a matter of time.”

The report is being published just as the debate on financial reform in Brussels reaches a crucial stage. The parliament and commission are finalising plans for reform of the OTC Derivatives market as well as Credit Default Swaps.

It also comes as the government  is due to launch a consultation on a statutory register of lobbying, for the UK.

The report can be downloaded here.

Safety copy:  How Goldman Sachs Rigs the Game (SpinWatch March 2011)

DefDog

Integrity at risk, extending from an invasive government cloaked under the guise “protection” to the sell out by commercial organizations…..

CISPA supporters list: 800+ companies that could help Uncle Sam snag your data

As the campaign against the Cyber Intelligence Sharing and Protection Act (CISPA) heats up, it’s important for the opposition movement to understand just how many companies directly or indirectly support the legislation (i.e. through a trade group). Here, the complete list of CISPA supporters.

During the week of April 23, the House of Representatives is expected to vote on the Cyber Intelligence Sharing and Protection Act of 2011 (CISPA). And starting on Monday, a variety of organizations, including the Electronic Frontier Foundation, the American Civil Liberties Union, the Center for Democracy and Technology, The Constitution Project, Demand Progress, Engine Advocacy, Fight for the Future, Free Press, Reporters Without Borders, Techdirt, and TechFreedom plan to launch a “week of action” campaign against CISPA, a bill they believe remains dangerously broad in its language, which could result in abuse by the government, and damages to our civil liberties.

Click on Image to Enlarge

While many are comparing CISPA to the Stop Online Piracy Act (SOPA), the two bills are entirely different for a number of reasons. First, CISPA is a cybersecurity bill that pertains to the sharing of information between the government and private companies. SOPA was an anti-piracy bill that sought to block access to “foreign rogue” websites that illegally distributed copyrighted material. Second, SOPA was opposed by many of the technology and Internet industry’s biggest players. CISPA, on the other hand, effectively has the support of hundreds of technology and Internet companies — a key difference that could drastically affect whether the anti-CISPA crowd can successfully block passage of the bill.

To give you a full picture of just how much political firepower the CISPA has in Congress, we’ve listed most, if not all, of the companies and organizations that have voiced either direct support for CISPA (by writing a letter, or otherwise expressing support for this specific bill), or indirect support through the direct support of a trade group. The organizations or companies listed in bold have voiced direct support. Those companies not in bold have not necessarily given direct support (though quite a few have), but have supported the bill through the trade group, which is listed in bold. The links go to the .pdf files of the letters the company sent to the House Intelligence Committee to express their support of CISPA.

As you can see, the list of CISPA supporters is massive, and should give anyone who thinks this will be an easy political fight a dose of reality. Not that CISPA can’t be stopped but, well, scroll down and you’ll see what we mean.

See full list here.

Marcus Aurelius

Starting to see initial indications that at least one part of DoD is gearing up to cut anywhere from 6% to 50% of its workforce within the fairly near term, perhaps beginning as soon as 01 Oct.  Drivers could be generic deficit reduction, sequestration, and historic limitations on strength levels in certain types of organizations.  Expect it to be ugly — sprung at last minute, execute without finesse.)

Government Workers Are Unfairly Assailed

By Ted Kaufman, US Senator (DE)

Wilmington (DE) News Journal
April 8, 2012

We’ve heard a lot in the past couple of years, pro and con, about escalating CEO compensation, but it seems to me at least one argument in their defense has merit. It is important to pay enough to recruit and retain the best talent available in the highly competitive global marketplace.

What seems strange to me is that those who believe this is true, that you have to pay well to attract the best talent, usually don’t accept the same argument when it comes to government employees.

One of the more dangerous consequences of the financial crisis is how governments at all levels are, in effect, cutting off their noses to spite
their faces. In the rush to balance their budgets, some are indiscriminately firing, freezing and cutting pay, and cutting pensions — too often impacting the people who actually make government work.

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Josh Kilbourn

Global Systemic Risk Is Rising Rapidly Again

Submitted by Tyler Durden on

ZeroHedge, 04/11/2012 15:26 -0400

The risk of the 30 most systemically important financial institutions (SIFI) in the world has risen over 30% in the last three weeks as the effects of LTRO fade and encumbrance becomes the new reality.

This less-manipulated, government-bank-reacharound-driven bond-market sense of reality has retraced almost 40% of its improvement from its peak last November at 311bps to its best level mid-March at 171bps.

The current 226bps level is extremely elevated and as one would expect is dominated by European and US banks (with US banks on average trading wider than Europeans – which may surprise many but Europeans dominate the worst names – most specifically the Spanish banks).

Graphics Below the Line.

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Patrick Meier

Does the Humanitarian Industry Have a Future in The Digital Age?

I recently had the distinct honor of being on the opening plenary of the 2012 Skoll World Forum in Oxford. The panel, “Innovation in Times of Flux: Opportunities on the Heels of Crisis” was moderated by Judith Rodin, CEO of the Rockefeller Foundation. I’ve spent the past six years creating linkages between the humanitarian space and technology community, so the conversations we began during the panel prompted me to think more deeply about innovation in the humanitarian space. Clearly, humanitarian crises have catalyzed a number of important innovations in recent years. At the same time, however, these crises extend the cracks that ultimately reveal the inadequacies of existing humanita-rian organizations, particularly those resistant to change; and “any organization that is not changing is a battle-field monument” (While 1992).

These cracks, or gaps, are increasingly filled by disaster-affected communities themselves thanks in part to the rapid commercialization of communication technology. Question is: will the multi-billion dollar humanitarian industry change rapidly enough to avoid being left in the dustbin of history?

Crises often reveal that “existing routines are inadequate or even counter-productive [since] response will necessarily operate beyond the boundary of planned and resourced capabilities” (Leonard and Howitt 2007). More formally, “the ‘symmetry-breaking’ effects of disasters undermine linearly designed and centralized administrative activities” (Corbacioglu 2006). This may explain why “increasing attention is now paid to the capacity of disaster-affected communities to ‘bounce back’ or to recover with little or no external assistance following a disaster” (Manyena 2006).

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Event: 7-11 May Washington DC Arno Reuser on OSINT

Event: 14-18 May London Arno Reuser on OSINT