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Government Corruption News Articles
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Below are key excerpts of revealing news articles on government corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.


Note: Explore our full index to revealing excerpts of key major media news articles on dozens of engaging topics. And read excerpts from 20 of the most revealing news articles ever published.


Tinker, tailor, soldier... illusionist?
2009-11-01, Boston Globe
http://www.boston.com/bostonglobe/ideas/articles/2009/11/01/when_the_cia_trie...

At the height of the Cold War - in the era of nuclear missiles and submarines, amid the tangled cloak-and-dagger maneuverings of espionage and counterespionage - the [CIA] was also secretly doing something else. It was trying to learn to do magic. The CIA hired [magician John] Mulholland to explain techniques of sleight-of-hand and surreptitious signaling so that agents could use them in the field. His text, which was originally supposed to have been destroyed, has now been recovered, declassified, and reprinted as The Official CIA Manual of Trickery and Deception. It deals mostly with basic stagecraft, minus the stage. Former CIA deputy director John McLaughlin writes in a [foreword] to the manual that “[a]s best we know,” the drink-spiking techniques “were never actually used.” The assurance would be more reassuring if the authors who had recovered the manual, H. Keith Melton and Robert Wallace, had not included their own historical overview of CIA trickery. In it, they explain that Mulholland’s writing was part of the secret MKULTRA program, whereby the CIA sought methods and materials “capable of employment in clandestine operations to control human behavior.” And part of MKULTRA did involve dosing unsuspecting subjects with LSD and other drugs. Techniques of stage magic ... were transferred to the realm of nonconsensual secrecy, to be used on people who were not asking to be fooled.

Note: For a powerful and reliable overview of the CIA's mind control programs, including MK-Ultra, click here.


1,600 are suggested daily for FBI's list
2009-11-01, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2009/10/31/AR20091031021...

Newly released FBI data offer evidence of the broad scope and complexity of the nation's terrorist watch list, documenting a daily flood of names nominated for inclusion to the controversial list. During a 12-month period ended in March this year, for example, the U.S. intelligence community suggested on a daily basis that 1,600 people qualified for the list because they presented a "reasonable suspicion," according to data provided to the Senate Judiciary Committee by the FBI in September and made public last week. The ever-churning list is said to contain more than 400,000 unique names and over 1 million entries. Nine percent of those on the terrorism list, the FBI said, are also on the government's "no fly" list. Before the attacks of Sept. 11, 2001, the FBI needed initial information that a person or group was engaged in wrongdoing before it could open a preliminary investigation. Under current practice, no such information is needed. The inquiries can be opened by individual agents "proactively," meaning on his or her own or in response to a lead about a threat.

Note: For lots more from major media sources on the growing government threats to civil liberties, click here.


Man who shot Dziekanski video gets journalism award
2009-10-28, CBC News
http://www.cbc.ca/canada/british-columbia/story/2009/10/28/bc-taser-video-cjf...

The man who used a digital camera to record the death of Robert Dziekanski at the Vancouver airport says he feels guilty he didn't try to help the Polish immigrant. Dziekanski, 40, died Oct. 14, 2007, following several shocks from a Taser four RCMP officers used to subdue him after he caused a disturbance. The incident might never have received much attention if Paul Pritchard had not decided to grab his digital camera and start recording the actions of the distraught Dziekanski before police arrived. The release of the 10-minute video, which contradicted the police version of the incident, led to widespread public outrage around the world and diplomatic tensions between Canada and Poland. The 10-minute Pritchard video [showed that] four RCMP officers rushed in and confronted Dziekanski, who backed up toward a counter. Dziekanski then faced the officers with what later turned out to be a stapler in one hand. Immediately, there was a loud crack from a Taser, followed by Dziekanski screaming and convulsing as he stumbled and fell to the floor. Another loud crack can be heard, as an officer appears to fire the Taser at Dziekanski again. Then, as the officers kneel on top of Dziekanski and handcuff him, he continues to scream and convulse on the floor. One officer is heard to say, "Hit him again. Hit him again," and there is another loud cracking sound. Evidence at the inquiry revealed the Taser was eventually fired five times at Dziekanski. After he was subdued, the RCMP left him handcuffed on the floor, where he died before medical help arrived.

Note: If these police would be so brutal in front of the public, imagine what they might have done when no one is looking. And note that the complete text of this article reveals that their brutal actions were covered up at high levels in the police department.


Novartis Expects Swine Flu Boost In Q4
2009-10-22, New York Times/Reuters
http://www.nytimes.com/reuters/2009/10/22/business/business-uk-novartis.html

Swiss drugmaker Novartis said sales would grow faster than expected this year, even without a shot in the arm of up to $700 million from its H1N1 swine flu pandemic vaccine. Third-quarter net profit at Novartis ... nudged up 1 percent to $2.1 billion. This year is turning out to be better than initially feared for Novartis and other major pharmaceutical companies, thanks to hefty price increases and windfall sales arising from the H1N1 outbreak. Both Pfizer, the world's biggest drugmaker, and Eli Lilly topped earnings forecasts this week. Roche reported a sharp jump in sales of its Tamiflu drug for flu last week and analysts expect GlaxoSmithKline's Relenza will also see strong sales in the third quarter. On the vaccine front, Glaxo, Sanofi-Aventis and AstraZeneca are all expected to highlight an expected jump in fourth-quarter sales due to swine flu. The H1N1 flu vaccine is expected to contribute about $400-700 million of sales in the fourth quarter.

Note: Donald Rumsfeld personally made millions as a direct result of the avian flu scare a few year ago. For more on this, click here. For more on pharmaceutical corporation profiteering from swine flu vaccines, click here.


Mum's the Word for NASA's Secret Space Plane X-37B
2009-10-22, Fox News
http://www.foxnews.com/story/0,2933,569143,00.html

You would think that an unpiloted space plane built to rocket spaceward from Florida atop an Atlas booster, circle the planet for an extended time, then land on autopilot on a California runway would be big news. But for the U.S. Air Force X-37B project — seemingly, mum's the word. There is an air of vagueness regarding next year's Atlas Evolved Expendable launch of the unpiloted, reusable military space plane. This Boeing Phantom Works craft has been under development for years. Several agencies have been involved in the effort, NASA as well as the Defense Advanced Projects Research Agency (DARPA) and various arms of the U.S. Air Force. The tight-lipped factor surrounding the space plane, its mission, and who is in charge is curious. Such a hush-hush factor seems to mimic in pattern that mystery communications spacecraft lofted last month aboard an Atlas 5 rocket, simply called PAN. Its assignment and what agency owns it remains undisclosed. "The problem with it [X37-B] is whether you see it as a weapons platform," said Theresa Hitchens, former head of the Center for Defense Information's Space Security Program, now Director of the United Nations Institute for Disarmament Research (UNIDIR) in Geneva, Switzerland. "It then becomes, if I am not mistaken, a Global Strike platform. There are a lot of reasons to be concerned about Global Strike as a concept," Hitchens [said].


Bailout Helps Fuel New Era of Wall Street Wealth
2009-10-17, New York Times
http://www.nytimes.com/2009/10/17/business/economy/17wall.html

Even as the economy continues to struggle, much of Wall Street is minting money — and looking forward again to hefty bonuses. Many Americans wonder how this can possibly be. How can some banks be prospering so soon after a financial collapse, even as legions of people worry about losing their jobs and their homes? It may come as a surprise that one of the most powerful forces driving the resurgence on Wall Street is not the banks but Washington. Many of the steps that policy makers took last year to stabilize the financial system — reducing interest rates to near zero, bolstering big banks with taxpayer money, guaranteeing billions of dollars of financial institutions’ debts — helped set the stage for this new era of Wall Street wealth. Titans like Goldman Sachs and JPMorgan Chase are making fortunes in hot areas like trading stocks and bonds, rather than in the ho-hum business of lending people money. They also are profiting by taking risks that weaker rivals are unable or unwilling to shoulder — a benefit of less competition after the failure of some investment firms last year. So even as big banks fight efforts in Congress to subject their industry to greater regulation — and to impose some restrictions on executive pay — Wall Street has Washington to thank in part for its latest bonanza. “All of this is facilitated by the Federal Reserve and the government,” said Gary Richardson, a research fellow at the National Bureau of Economic Research. “But we have just shown them that they can have the most frightening things happen to them, and we will throw trillions of dollars to protect them. I have big concerns about that.”

Note: For lots more on the realities of the Wall Street bailout, click here.


Why Is the UBS Whistle-Blower Headed to Prison?
2009-10-06, Time Magazine
http://www.time.com/time/business/article/0,8599,1928897,00.html

No one, including himself, would argue that Bradley Birkenfeld, 44, is a saint. But at the same time, almost no one in the U.S. government would deny that Birkenfeld was absolutely essential to its landmark tax-evasion case against Swiss banking giant UBS. The former UBS employee turned whistle-blower exposed the previously hidden world of offshore tax shelters, which cheats the Treasury out of about $100 billion a year. Thanks to his insider information, UBS was fined $780 million, and it promised to "exit entirely" from the U.S. tax-shelter business and to provide the names of thousands of American tax dodgers, from which hundreds of millions of dollars still might be collected. It also led to new tax treaties with the Swiss that should provide unprecedented tax information in civil cases and better access to such data in criminal cases. Considering Birkenfeld's help, many observers wonder why the Justice Department decided to arrest and prosecute him. Many critics believe the decision to prosecute Birkenfeld, whom some consider the most important whistle-blower in years, sends the worst possible message to other financial-industry insiders who might be considering coming forward. The Government Accountability Project (GAP), a Washington watchdog organization that has extensive whistle-blower experience, says a chilling effect is already apparent: a senior executive at a European bank that offers similar U.S. tax shelters is having second thoughts about going public because of the Birkenfeld case.

Note: For lots more, including Obama's tight ties with UBS, see the New York Daily News article here.


The demise of the dollar
2009-10-06, The Independent (One of the UK's leading newspapers)
http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798...

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar. Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars. The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets. The Americans ... are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China's former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security." This sounds like a dangerous prediction of a future economic war between the US and China over Middle East oil – yet again turning the region's conflicts into a battle for great power supremacy.

Note: The publication of this article caused the value of the dollar to fall and the price of gold to rise worldwide. For important ideas on how to reform the role of money in the world, click here.


Government Watchdog Says Treasury and Fed Knew Bailed-Out Banks Were Not Healthy
2009-10-05, ABC News
http://abcnews.go.com/Business/lied-watchdog-treasury-fed-knew-bailed-banks-h...

The Treasury Department and the Federal Reserve lied to the American public last fall when they said that the first nine banks to receive government bailout funds were healthy, a government watchdog states in a new report released today. Neil Barofsky, the special inspector general for the Troubled Asset Relief Program (SIGTARP), says that despite multiple statements on Oct. 14 of last year that these nine banks were healthy and only receiving government funds for the good of the country's economy, federal officials knew otherwise. "Contemporaneous reports and officials' statements to SIGTARP during this audit indicate that there were concerns about the health of several of the nine institutions at that time and, as detailed in this report, that their overall selection was far more a result of the officials' belief in their importance to a system that was viewed as being vulnerable to collapse than concerns about their individual health and viability," Barofsky says. In announcing the initial $125 billion provided to these banks, former Treasury Secretary Hank Paulson on Oct. 14 said, "These are healthy institutions. As these healthy institutions increase their capital base, they will be able to increase their funding to U.S. consumers and businesses." That same day, the Treasury Department, the Federal Reserve and the FDIC also released a joint statement reiterating that "these healthy institutions are taking these steps to ... enhance the overall performance of the US economy." Barofsky finds, however, senior officials at the Treasury and the Fed had serious concerns about the health of some of these banks.

Note: For a comprehensive overview of the realities underlying the government's bailout of the biggest financial institutions, click here.


U.S. aid often misses targets in Afghanistan
2009-10-04, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/10/04/MN8L19NHRM.DTL

When built in 2004, the agricultural storage facility in Nangarhar province was supposed to win the hearts and minds of the Afghan people. The U.S. government paid for its construction along with several other so-called "market centers" that would enable farmers to store crops and boost exports to nearby Pakistan. But construction and design flaws left it unusable, one of many dozens of similar failures in the country, critics say. Opponents say the Nangarhar project is just one example of massive waste of taxpayer dollars in aid programs since the U.S.-led invasion ousted the Taliban government in 2001. A Washington, D.C., company, Chemonics International, won the bid for [a] $145 million program - known as Rebuilding Agricultural Markets Program, or RAMP - that ran from 2003 to 2006. Chemonics then subcontracted the training and construction work to other Americans, who in turn subcontracted to numerous Afghan companies who did the work. At each level, the subcontractors deducted costs for salaries, office expenses and security. Only a small percentage of the original RAMP contract money actually reached farmers and other intended recipients. The exact percentage may never be known because neither Chemonics nor the U.S. government tracks such figures. Moreover, opponents note, many constructed market centers have deteriorated or are not being used for their original purpose. Afghanistan's foreign minister, Rangeen Dadfar Spanta, sharply criticized how U.S. aid is spent in his country. He estimates that only "$10 or $20" of every $100 reaches its intended recipients.

Note: For lots more on corporate corruption from reliable sources, click here.


Electronic border control
2009-10-02, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/10/02/EDDQ19VF7L.DTL

Suppose you're returning home from a vacation in Cancun. A customs agent asks you to open your suitcase so he can check its contents. So far, so good. Now, the agent asks you to log on to your laptop so he can read your e-mails and personal files and examine which Web sites you've visited. He makes a copy of your hard drive so the government can comb through its contents. You've done nothing to give the agent any cause for suspicion. That can't be legal - can it? Until recently, it would not have been allowed. Long-standing customs directives prohibited agents from reading travelers' personal documents unless they reasonably suspected them to be merchandise or evidence of illegal activity. Then the Bush administration changed the rules, allowing agents to "review and analyze" the contents of electronic devices, including laptops, cell phones and BlackBerrys "absent individualized suspicion." Agents also could make copies of the devices' contents and share them with other government agencies. In a Senate Judiciary Committee hearing in May, Secretary of Homeland Security Janet Napolitano promised to review the policy. Homeland Security has now released a new policy - and it is the same as the Bush policy in almost every relevant respect. The government may still search electronic devices without reasonable suspicion, retain copies indefinitely to complete its search and share information with other agencies. Both administrations have cited national security to justify suspicionless searches. There's no evidence, however, that a suspicionless search has ever turned up a security threat.

Note: The author of this op-ed, Elizabeth Goitein, is the director of the Liberty and National Security Project at the Brennan Center for Justice at NYU School of Law. For lots more on how politicians use "national security" as a means to protect their own manipulations at the expense of the public good, click here.


Nanomaterials Under Study by the E.P.A.
2009-09-30, New York Times
http://www.nytimes.com/2009/09/30/science/earth/30nano.html

The Environmental Protection Agency detailed its plans ... for research into the possible health and environmental risks of nanomaterials, tiny substances that are finding growing use in products like sunscreens and industrial adhesives. The document ... calls for work to identify sources of nanomaterials, which can measure as little as perhaps one-10,000th the width of a human hair. Research will also center on how they move in the environment, the problems they might cause for people, animals and plants, and how these problems could be avoided or mitigated. The federal National Nanotechnology Initiative is charged with coordinating research by various agencies on the issue. But in a highly critical report last year, the National Academy of Sciences dismissed its effort as inadequate. Little is known about whether substances engineered at the nano scale persist and accumulate in the environment in unusual and potentially harmful ways. In August, a coalition of groups including Friends of the Earth and Consumers Union issued a report urging people to avoid sunscreens containing nano-forms of zinc oxide, saying their risks were unknown.


Military to get mandatory swine flu shots soon
2009-09-29, MSNBC/Associated Press
http://www.msnbc.msn.com/id/33079725/ns/health-swine_flu

U.S. military troops will begin getting required swine flu shots in the next week to 10 days, with active duty forces deploying to war zones and other critical areas going to the front of the vaccine line. Air Force Gen. Gene Renuart also [said] that as many as 400 troops are ready to go to five regional headquarters around the country to assist federal health and emergency management officials. The Pentagon has bought 2.7 million vaccines, and 1.4 million of those will go to active duty military. National Guard troops on active duty are also required to receive the vaccine, as are civilian Defense Department employees who are in critical jobs. "Because I can compel people to get the shots, larger numbers will have the vaccine," said Renuart, commander of U.S. Northern Command. "They will, as a percentage of the population, be vaccinated more rapidly than many of us. So we may see some objective results, good or not, of the vaccinations." Shots will be doled out on a priority basis, with troops preparing to deploy first, followed by other active duty forces, particularly any who might be needed to quickly respond to a hurricane or other emergency. Inoculating the military is a key requirement of the Pentagon's emergency plan, as a way to ensure that troops are available to protect the nation. They also will be on tap to provide help to states if problems come up as the flu season continues.

Note: It is not made clear by this article precisely how military personnel will "assist" civilian authorities handle a mass swine flue vaccination program. The plans to use the military for this purpose are unprecedented and formerly illegal. For lots more from reliable sources on the dangers of vaccines, click here and here.


F.D.A. Reveals It Fell to a Push by Lawmakers
2009-09-25, New York Times
http://www.nytimes.com/2009/09/25/health/policy/25knee.html

The Food and Drug Administration [has admitted] that four New Jersey congressmen and its own former commissioner unduly influenced the process that led to its decision last year to approve a patch for injured knees. The agency’s scientific reviewers repeatedly and unanimously over many years decided that the device, known as Menaflex and manufactured by ReGen Biologics Inc., was unsafe because the device often failed, forcing patients to get another operation. But after receiving what an F.D.A. report described as “extreme,” “unusual” and persistent pressure from four Democrats from New Jersey ... agency managers overruled the scientists and approved the device for sale in December. All four legislators made their inquiries within a few months of receiving significant campaign contributions from ReGen, which is based in New Jersey, but all said they had acted appropriately and were not influenced by the money. Dr. Andrew C. von Eschenbach, the former drug agency’s commissioner, said he had acted properly. The agency has never before publicly questioned the process behind one of its approvals, never admitted that a regulatory decision was influenced by politics, and never accused a former commissioner of questionable conduct. The report, written by top agency officials, said that Dr. von Eschenbach, who resigned as F.D.A. commissioner in January, became as a result of political pressure “personally engaged in the details of a process usually coordinated” by scientific staff. One agency manager concluded that Dr. von Eschenbach “was demanding not only an expedited process but also an outcome in favor of ReGen,” the report stated.

Note: For a powerful summary of corruption in the pharmaceutical industry, click here.


Have a Nice Day
2009-09-16, New York Times
http://www.nytimes.com/2009/09/16/opinion/16friedman.html

Applied Materials is one of the most important U.S. companies you’ve probably never heard of. It makes the machines that make the microchips that go inside your computer. The chip business, though, is volatile, so in 2004 Mike Splinter, Applied Materials’s C.E.O., decided to add a new business line to take advantage of the company’s nanotechnology capabilities — making the machines that make solar panels. The other day, Splinter gave me a tour of the company’s Silicon Valley facility, culminating with a visit to its “war room,” where Applied maintains a real-time global interaction with all 14 solar panel factories it’s built around the world in the last two years. Not a single one is in America. Let’s see: five are in Germany, four are in China, one is in Spain, one is in India, one is in Italy, one is in Taiwan and one is even in Abu Dhabi. The reason that all these other countries are building solar-panel industries today is because most of their governments have put in place the three prerequisites for growing a renewable energy industry: 1) any business or homeowner can generate solar energy; 2) if they decide to do so, the power utility has to connect them to the grid; and 3) the utility has to buy the power for a predictable period at a price that is a no-brainer good deal for the family or business putting the solar panels on their rooftop. Regulatory, price and connectivity certainty, that is what Germany put in place, and that explains why Germany now generates almost half the solar power in the world today and, as a byproduct, is making itself the world-center for solar research, engineering, manufacturing and installation. With more than 50,000 new jobs, the renewable energy industry in Germany is now second only to its auto industry.

Note: For lots more from reliable sources on promising new energy developments, click here.


Vaccine skepticism is in the air
2009-09-14, Los Angeles Times
http://www.latimes.com/features/health/la-hew-no-fear-side14-2009sep14,0,4079...

The nation's political crosscurrents appear to have created vaccine skeptics of many stripes. Many citizens are less inclined than ever to accept the warnings of the Department of Health and Human Services or the recommendations of its Centers for Disease Control and Prevention, says Sandra Quinn, a University of Pittsburgh public health professor who has just completed a national survey of attitudes about the flu vaccine. Vaccine refusers have long decried vaccine mandates and campaigns as an unwarranted intrusion of parents' and local school boards' rights. For a new generation of vaccine skeptics, there are new objects of distrust. For some, it flows from a suspicion of the multinational corporations that develop and manufacture vaccines. For others, it comes from a belief that media outlets have hyped the pandemic flu story to secure the attention of readers and the revenue of advertisers. And many simply doubt the competency and independence of government agencies, which they believe are too inept, overwhelmed or co-opted by corporate interests to secure the safety of the nation's drugs and food supply. Adding to the wariness toward the forthcoming H1N1 vaccine is the fact that the formulations used on patients in the United States might require the use of adjuvants -- special agents added to a vaccine mix that rev up the immune system and foster a stronger immune response. While adjuvants have been used in vaccines in Europe for many years, the FDA has never approved them for widespread use in the United States. Some vaccine critics in Great Britain have charged that one adjuvant used in European formulations -- squalene -- is associated with a wide range of vague but persistent symptoms.

Note: Adjuvants are being added to vaccines, yet the resulting combined formula is not being tested for safety; the individual components are tested separately. The process for the testing of vaccines is endangering our health. For lots more on the dangers of vaccines and squalene in particular, read respected Dr. Joseph Mercola's incisive article available here.


But Who Is Watching Regulators?
2009-09-13, New York Times
http://www.nytimes.com/2009/09/13/business/13gret.html

Nothing succeeds like failure, as the saying goes. And nowhere is this dismal truth more evident than in our financial regulatory system, one year after the bankruptcy filing of Lehman Brothers. Even though calamitous lending practices laid waste to the nation’s economy, surprisingly little has changed about how the financial arena operates and is supervised. Sure, a couple of venerable brokerage firms have vanished, but many of the same players remain on the scene, in the same positions of power. Senior regulators who stood idly by for years as financial firms built their houses of cards have been rewarded with even bigger jobs or are jockeying for increased responsibilities. The Federal Reserve Board, for example, wants to become the financial system’s uber-regulator, even though its officials did nothing as banks made deadly decisions to lend recklessly and leverage themselves to the max. Awarding increased power to those who failed in their oversight duties flies in the face of all notions of accountability. Yet those in the public sector ask us to believe that regulators who snoozed during the credit bubble will be alert to emerging problems on their beats when the next mania begins. That’s asking a lot, isn’t it? Here’s a novel thought. Instead of creating more regulations to try to prevent this kind of mess from recurring, why not figure out how to hold regulators accountable when they perform as poorly as they did in recent years? Taxpayers must protect themselves against two things: the corrupting influence of bureaucratic self-interest among regulators and the political clout wielded by the large institutions they are supposed to police. [And] taxpayers must demand that the government publicize the costs of efforts taken to save the financial system from itself.

Note: For lots more from reliable sources on the realities of the Wall Street crash and bailout, click here.


A Year After a Cataclysm, Little Change on Wall St.
2009-09-12, New York Times
http://www.nytimes.com/2009/09/12/business/12change.html

Wall Street lives on. One year after the collapse of Lehman Brothers, the surprise is not how much has changed in the financial industry, but how little. Backstopped by huge federal guarantees, the biggest banks have restructured only around the edges. Employment in the industry has fallen just 8 percent since last September. Only a handful of big hedge funds have closed. Pay is already returning to precrash levels, topped by the 30,000 employees of Goldman Sachs, who are on track to earn an average of $700,000 this year. Nor are major pay cuts likely, according to a report last week from J.P. Morgan Securities. Executives at most big banks have kept their jobs. Financial stocks have soared since their winter lows. Banks still sell and trade unregulated derivatives, despite their role in last fall’s chaos. Radical changes like pay caps or restrictions on bank size face overwhelming resistance. Even minor changes, like requiring banks to disclose more about the derivatives they own, are far from certain. Regulators and lawmakers have spent most of the last year trying to save the financial industry, rather than transform it. In the short run, their efforts have succeeded. Citigroup and other wounded banks have avoided bankruptcy, and the economy has sidestepped a depression. But the same investors and economists who predicted, and in some cases profited from, the collapse last fall say the rescue has come at an extraordinary cost. They warn that if the industry’s systemic risks are not addressed, they could cause an even bigger crisis — in years, not decades. Next time, they say, the credit of the United States government may be at risk.

Note: For a treasure trove of reports from reliable sources on the realities of the Wall Street bailout, click here.


Lost In Translation
2009-09-10, CBS News 60 Minutes
http://www.cbsnews.com/2100-18560_162-526954.html

This is the story of hundreds, if not thousands, of foreign language documents that the FBI neglected to translate before and after the Sept. 11 attacks -- documents that detailed what the FBI heard on wiretaps and learned during interrogations of suspected terrorists. Sibel Edmonds, a translator who worked at the FBI's language division, says the documents weren't translated because the division was riddled with incompetence and corruption. Edmonds was fired after reporting her concerns to FBI officials. She told her story behind closed doors to investigators in Congress and to the Justice Department. Most recently, she spoke with the commission investigating the Sept. 11 attacks. Because she is fluent in Turkish and other Middle Eastern languages, Edmonds, a Turkish-American, was hired by the FBI soon after Sept. 11 and given top-secret security clearance to translate some of the reams of documents seized by FBI agents who have been rounding up suspected terrorists across the United States and abroad. Edmonds says that to her amazement, from the day she started the job, she was told repeatedly by one of her supervisors that there was no urgency, that she should take longer to translate documents so that the department would appear overworked and understaffed. That way, it would receive a larger budget for the next year. Edmonds says that the supervisor, in an effort to slow her down, went so far as to erase completed translations from her FBI computer after she'd left work for the day.

Note: Sibel Edmonds just recently self-published a book exposing major intelligence cover-ups around 9/11. To see this highly rated book in which she breaks the government gag order placed on her, click here. For lots more verifiable news on this courageous woman, click here.


Big Food vs. Big Insurance
2009-09-10, New York Times
http://www.nytimes.com/2009/09/10/opinion/10pollan.html

To listen to President Obama, or to just about anyone else in the health care debate, you would think that the biggest problem with health care in America is the system itself — perverse incentives, inefficiencies, unnecessary tests and procedures, lack of competition, and greed. No one disputes that the $2.3 trillion we devote to the health care industry is often spent unwisely, but the fact that the United States spends twice as much per person as most European countries on health care can be substantially explained, as a study released last month says, by our being fatter. Even the most efficient health care system that the administration could hope to devise would still confront a rising tide of chronic disease linked to diet. That’s why our success in bringing health care costs under control ultimately depends on whether Washington can summon the political will to take on and reform a second, even more powerful industry: the food industry. According to the Centers for Disease Control and Prevention, three-quarters of health care spending now goes to treat “preventable chronic diseases.” Not all of these diseases are linked to diet — there’s smoking, for instance — but many, if not most, of them are. We’re spending $147 billion to treat obesity, $116 billion to treat diabetes, and hundreds of billions more to treat cardiovascular disease and the many types of cancer that have been linked to the so-called Western diet. One recent study estimated that 30 percent of the increase in health care spending over the past 20 years could be attributed to the soaring rate of obesity, a condition that now accounts for nearly a tenth of all spending on health care. The American way of eating has become the elephant in the room in the debate over health care.

Note: For a detailed overview of some of the critical risks of the industrially-engineered modern American diet, click here.


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