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Revealing News For a Better World

Government Corruption News Stories
Excerpts of Key Government Corruption News Stories in Major Media


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: This comprehensive list of news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.


Museum Gives Voice to Doubts on Dr. King's Killer
2002-10-16, New York Times
Posted: 2009-07-04 20:13:01
http://www.nytimes.com/2002/10/16/us/museum-gives-voice-to-doubts-on-dr-king-...

James Earl Ray, a drifter and ex-convict, shot and killed the Rev. Dr. Martin Luther King Jr. with a single bullet here on an April evening in 1968. That is the official story, the reason Mr. Ray spent the last three decades of his life in prison. Everybody knows it. But not everybody accepts it. Almost as soon as Dr. King was cut down -- and even more so after Mr. Ray recanted his guilty plea -- conspiracy theories abounded. Some said the assassin was an army sniper. Mr. Ray insisted he had been framed by a man named Raul, hired by the C.I.A. There was even a report that one of Dr. King's entourage had helped to kill him. Now ... the conspiracy theories have stirred to life again at the National Civil Rights Museum, in the former Lorraine Motel where Dr. King was shot. The museum recently opened an exhibit in a new $11 million wing primarily to document the assassination and the mystery that still surrounds it, at least in some people's minds. On display are 200 pieces of evidence, freshly unsealed from police archives. The gun. The 30.06-caliber bullet tweezed out of Dr. King's body. A fake passport and guidebook to Rhodesia found on Mr. Ray, curious artifacts for an unemployed ex-convict supposedly working solo. Questions are stamped on the wall, in bold letters. "Did Ray have help? Did someone else do it? Was the Memphis Police Department part of the conspiracy?" The King family believes that Mr. Ray, who died of liver disease in 1998, was not the killer. Dexter King, Dr. King's son, visited Mr. Ray on his deathbed. The government killed my father, Dexter King told him, not you. Mr. Ray's family said they were finally getting the vindication they deserved.

Note: In one of the biggest media cover-ups ever, the government was found guilty of consipiring to murder King in a 1999 civil trial in Memphis. The press strangely boycotted the historic trial. For more on this amazingly well kept secret, click here. For many revealing reports on the major US political assassinations, which consistently cast doubts on the official accounts of how they occurred, click here.


White House Weighs Order on Detention
2009-06-27, Washington Post
Posted: 2009-06-29 18:57:29
http://www.washingtonpost.com/wp-dyn/content/article/2009/06/26/AR20090626033...

Obama administration officials ... are crafting language for an executive order that would reassert presidential authority to incarcerate terrorism suspects indefinitely, according to three senior government officials with knowledge of White House deliberations. Such an order would embrace claims by former president George W. Bush that certain people can be detained without trial for long periods under the laws of war. In a May speech, President Obama broached the need for a system of long-term detention and suggested that it would include congressional and judicial oversight. "We must recognize that these detention policies cannot be unbounded. They can't be based simply on what I or the executive branch decide alone," he said. A senior Republican [Congressional] staff member said that senators have yet to see "a comprehensive, detailed policy" on long-term detention from the administration. "They can do it without congressional backing, but I think there would be very strong concerns," the staff member said, adding that "Congress could cut off funding" for any detention system established in the United States. Concerns are growing among Obama's advisers that Congress may try to assert too much control over the process. "Legislation could kill Obama's plans," said one government official involved. The official said an executive order could be the best option for the president at this juncture. Under one White House draft that was being discussed this month, according to administration officials, detainees would be imprisoned at a military facility on U.S. soil, but their ongoing detention would be subject to annual presidential review.

Note: Again the Obama administration is following in the footsteps of the Bush administration, despite prior promises not to do so. For more on threats to civil liberties from reliable sources, click here.


Lawmaker accuses Fed of "cover-up" in BofA deal
2009-06-25, Boston Globe/Reuters News
Posted: 2009-06-29 18:54:21
http://www.boston.com/business/articles/2009/06/25/lawmaker_accuses_fed_of_co...

The Federal Reserve sought to hide its involvement in Bank of America Corp's acquisition of Merrill Lynch as Merrill's financial condition worsened, the top Republican on the House Oversight and Government Reform Committee said on Wednesday. The Fed "engaged in a cover-up and deliberately hid concerns and pertinent details regarding the merger from other federal regulatory agencies," Representative Darrell Issa said in a statement released to Reuters. Bernanke has in the past denied any inappropriate pressure on Bank of America. Fed spokeswoman Michelle Smith on Wednesday referred to a letter Bernanke sent Representative Dennis Kucinich on April 30 and later testimony in which he offered an "unconditional assertion" that he did not ask Bank of America CEO Ken Lewis to withhold information regarding Merrill. The Democrat who heads the committee, Edolphus Towns of New York, has called Bernanke to testify on Thursday. Former U.S. Treasury Secretary Henry Paulson has also been called to testify before Congress next month about the Bank of America-Merrill Lynch transaction. After rescuing Bank of America in January, U.S. regulators tightened their grip on the bank with a secret agreement that contributed to the ongoing shakeup of its directors and executives, the Wall Street Journal said, citing people familiar with the matter. The paper, citing internal documents, added that Federal Deposit Insurance Corp. Chairman Sheila Bair wrote to Bernanke before the aid to the bank was unveiled to express the FDIC's "discomfort" with the deal..

Note: For a treasure trove on the hidden realities of the governmental bailout of Wall Street, click here.


New Fed powers not matched with accountability
2009-06-25, Reuters News
Posted: 2009-06-29 18:51:05
http://www.reuters.com/article/topNews/idUSTRE55O6EZ20090625

President Barack Obama's proposal for a regulatory overhaul of the financial industry vastly expands the reach of the Federal Reserve, yet fails to make policy-makers more accountable for their actions. Critics argue that the new legislation fundamentally misses the problems that led to the financial crisis. It was a lack of enforcement by supervisors, they say, not insufficient rules, that fostered a cowboy culture of rampant risk-taking on Wall Street. "Obama is letting the Fed and everyone else off the hook by saying that the problem was with the regulations and not the regulators," said Dean Baker, co-director of the Center for Economic Policy Research in Washington. "If regulators know that even if they totally fail on the job, they will face no career consequences, then at some future point, when there is a choice between confronting the financial industry or just going along, the regulators will just go along," said Baker. Some feel uncomfortable with a broader role for the Fed primarily because of the Fed's closeness to the banking sector. The Fed is not technically a public entity. Each of the Fed's 12 branches are overseen by a nine-member board of directors, two-thirds of whom are elected by the bankers in the district. "The Federal Reserve has massive conflicts of interest that make it ill-suited for its present regulatory functions and certainly for an expanded regulatory reach," said Robert Auerbach, a professor of public affairs at the University of Texas at Austin. "The officials leading the Fed today preside over an organization that is run in substantial part by the bankers they regulate."

Note: For empowering insight into the historic roots of the Federal Reserve's unaccountability, click here.


'If I didn't confess to 7/7 bombings MI5 officers would rape my wife,' claims torture victim
2009-06-25, Daily Mail (a popular U.K. newspaper)
Posted: 2009-06-29 18:41:58
http://www.dailymail.co.uk/news/article-1195484/If-I-didnt-confess-7-7-bombin...

A British man spoke publicly for the first time yesterday to accuse MI5 officers of forcing him to confess to masterminding the July 7 bombings. Jamil Rahman claims UK security officers were behind his arrest in 2005 in Bangladesh. He says he was beaten repeatedly by local officials who also threatened to rape him and his wife. Mr Rahman, who is suing the Home Office, said a pair of MI5 officers who attended his torture and interrogation would leave the room while he was beaten. He claims when he told the pair he had been tortured they merely answered: 'They haven't done a very good job on you.' Mr Rahman told the BBC: 'They threatened my family. They go to me, "In the UK, gas leaks happen, if your family house had a gas leak and everyone got burnt, there's no problems, we can do that easily".' He says he eventually made a false confession of involvement in the July 7 bomb plots. The extraordinary allegations will add to pressure on UK ministers to come clean over the way Britain's intelligence agencies have been allowed to gather evidence around the world in the eight years since the September 11 attacks. Jamil Rahman, a former civil servant from south Wales, is a British citizen who moved to Bangladesh in 2005 and married a woman he met there. He returned to the UK last year. He said: 'It was all to do with the British. Jamil Rahman is one of a number of former detainees who accuse the British Government colluded in their torture abroad. His account echoes that of former Guantanamo Bay detainee Binyam Mohamed, who said he was tortured in Pakistan and Morocco with MI5's knowledge. The 30-year-old Ethiopian says he was beaten and deprived of sleep to try to make him confess to an Al Qaeda 'dirty bomb' plot, and his treatment is now the subject of an unprecedented police investigation into MI5's conduct.

Note: For lots more on the hidden strategies used to maintain the "war on terror", click here.


D.C. Crash Kills General Who Scrambled Jets on 9/11
2009-06-24, Bloomberg News
Posted: 2009-06-29 18:37:10
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aGu5lX16VTk8

David F. Wherley Jr., the head of the Washington National Guard who scrambled jets over the city during the 9/11 terrorist attacks, was among those killed in the worst commuter train crash in the city’s history, officials said. Wherley’s wife, Ann, was also among the nine people killed when a train plowed into the rear of a stopped train during rush hour on June 22, Quintin Peterson, a spokesman for the Metropolitan Police Department, said in a telephone interview. Both were 62 and lived in southeast Washington. Wherley was commander of the 113th Fighter Wing at Andrews Air Force base in Maryland during the September 2001 terrorist attacks and sent up aircraft with orders to protect the White House and the Capitol, according to the 9/11 Commission report. He commanded the District of Columbia National Guard from 2003 to 2008, the unit said in a statement. Wherley flew T-38 training jets and F-105 Thunderchief and F-4 Phantom combat jets during a military career that began in 1969, according to the guard’s statement. It said he earned a bachelor’s degree in economics from Fordham University in New York City in 1969, and a master’s in business administration from the University of Maryland in 1977.

Note: Could there be something more than a mere accident behind the death of the commander of the air defense forces over Washington DC on 9/11? Many questions continue to swirl concerning what was in the air over the city that morning, what was launched by Gen. Wherley and when, and why no interception of an attack aircraft approaching the Pentagon occurred. He knew more than the public does about what really took place in those crucial hours, but he will now not be available for questioning should a real investigation into the 9/11 attacks take place. For lots more on the suspicions that surround the official explanation and calls by highly respected citizens for just such an investigation, click here and here.


Claims of 9/11 conspiracy have suspect running scared
2007-05-25, Rocky Mountain News (One of Denver's two leading newspapers)
Posted: 2009-06-29 18:08:30
http://www.rockymountainnews.com/drmn/local/article/0,1299,DRMN_15_5555425,00...

A former Federal Emergency Management Agency videographer accused of killing his wife in Denver is seeking political asylum in Argentina, claiming the U.S. government wants him silenced for what he saw in the smoldering ruins of the Twin Towers after 9/11. Kurt Sonnenfeld's efforts to avoid extradition have gained interest from human rights organizations in South America and broad attention from conspiracy theorists on the Internet. Sonnenfeld, 44, is charged with first-degree murder in the New Year's Day 2002 shooting death of his 36-year-old wife, Nancy. Sonnenfeld is quoted by the Argentine newspaper el Pais as saying, "I realized that they were after something else: the tapes of Ground Zero in my possession." Sonnenfeld said he was arrested by Interpol agents on the new Denver charges a week after delivering a demo video of 9/11 footage to a TV producer in Argentina. "I find that extremely coincidental," he said. In other interviews with Argentine media, Sonnenfeld is quoted as saying, "What I saw (at 9/11) leads me to the terrible conclusion that there was foreknowledge of what was going to happen — the precautions that were taken to save certain things that the authorities there considered irreplaceable or invaluable. For example, certain things were missing that could only have been removed with a truck. Yet after the first plane hit one of the towers, everything in Manhattan collapsed and no one could have gotten near the towers to do that." Sonnenfeld is quoted as saying documentation was removed from U.S. intelligence agencies in the World Trade Center, including the CIA, prior to the attacks.

Note: To read a more recent, powerful Voltaire Network interview with Kurt Sonnenfeld, click here. The truth is coming out more all the time!


Only a Hint of Roosevelt in Financial Overhaul
2009-06-18, New York Times
Posted: 2009-06-23 13:48:57
http://www.nytimes.com/2009/06/18/business/18nocera.html

Three quarters of a century ago, President Franklin Roosevelt earned the undying enmity of Wall Street when he used his enormous popularity to push through a series of radical regulatory reforms that completely changed the norms of the financial industry. Wall Street hated the reforms, of course, but Roosevelt didn’t care. Wall Street and the financial industry had engaged in practices they shouldn’t have, and had helped lead the country into the Great Depression. Those practices had to be stopped. To the president, that’s all that mattered. On Wednesday, President Obama unveiled what he described as “a sweeping overhaul of the financial regulatory system, a transformation on a scale not seen since the reforms that followed the Great Depression.” In terms of the sheer number of proposals, outlined in an 88-page document the administration released on Tuesday, that is undoubtedly true. But in terms of the scope and breadth of the Obama plan — and more important, in terms of its overall effect on Wall Street’s modus operandi — it’s not even close to what Roosevelt accomplished during the Great Depression. Rather, the Obama plan is little more than an attempt to stick some new regulatory fingers into a very leaky financial dam rather than rebuild the dam itself. Everywhere you look in the plan, you see the same thing: additional regulation on the margin, but nothing that amounts to a true overhaul. The plan places enormous trust in the judgment of the Federal Reserve — trust that critics say has not really been borne out by its actions during the Internet and housing bubbles. Firms will have to put up a little more capital, and deal with a little more oversight, but once the financial crisis is over, it will, in all likelihood, be back to business as usual.

Note: To watch the Inspector General of the Federal Reserve testify to Congress that she knows pracitcally nothing of trillions of dollars that are unaccounted for, click here. For many revealing reports from reliable sources on the hidden realities of the continuing taxpayer bailout of the biggest financial corporations, click here.


Inventory Uncovers 9,200 More Pathogens
2009-06-18, Washington Post
Posted: 2009-06-23 13:45:58
http://www.washingtonpost.com/wp-dyn/content/article/2009/06/17/AR20090617032...

An inventory of potentially deadly pathogens at Fort Detrick's infectious disease laboratory found more than 9,000 vials that had not been accounted for, Army officials said yesterday, raising concerns that officials wouldn't know whether dangerous toxins were missing. After four months of searching about 335 freezers and refrigerators at the U.S. Army Medical Research Institute of Infectious Diseases in Frederick, investigators found 9,220 samples that hadn't been included in a database of about 66,000 items listed as of February, said Col. Mark Kortepeter, the institute's deputy commander. The vials contained some dangerous pathogens, among them the Ebola virus, anthrax bacteria and botulinum toxin, and less lethal agents such as Venezuelan equine encephalitis virus and the bacterium that causes tularemia. Most of them, forgotten inside freezer drawers, hadn't been used in years or even decades. Officials said some serum samples from hemorrhagic fever patients dated to the Korean War. The overstock and the previous inaccuracy of the database raised the possibility that someone could have taken a sample outside the lab with no way for officials to know something was missing. The institute has been under pressure to tighten security in the wake of the 2001 anthrax attacks, which killed five people and sickened 17. FBI investigators say they think the anthrax strain used in the attacks originated at the Army lab, and its prime suspect, Bruce E. Ivins, researched anthrax there. Ivins committed suicide last year during an investigation into his activities.

Note: Fort Detrick is the home of the government lab which is suspected to be involved with the creation of many previously unknown lethal viruses and germs. For lots more, see the excellent work of Dr. Leonard Horowitz at this link and this one.


E-Mail Surveillance Renews Concerns in Congress
2009-06-17, New York Times
Posted: 2009-06-23 13:42:33
http://www.nytimes.com/2009/06/17/us/17nsa.html

The National Security Agency is facing renewed scrutiny over the extent of its domestic surveillance program, with critics in Congress saying its recent intercepts of the private telephone calls and e-mail messages of Americans are broader than previously acknowledged, current and former officials said. Since April, when it was disclosed that the intercepts of some private communications of Americans went beyond legal limits in late 2008 and early 2009, several Congressional committees have been investigating. Those inquiries have led to concerns in Congress about the agency’s ability to collect and read domestic e-mail messages of Americans on a widespread basis, officials said. Supporting that conclusion is the account of a former N.S.A. analyst who, in a series of interviews, described being trained in 2005 for a program in which the agency routinely examined large volumes of Americans’ e-mail messages without court warrants. Two intelligence officials confirmed that the program was still in operation. Both the former analyst’s account and the rising concern among some members of Congress about the N.S.A.’s recent operation are raising fresh questions about the spy agency. Representative Rush Holt, Democrat of New Jersey and chairman of the House Select Intelligence Oversight Panel, has been investigating the incidents and said he had become increasingly troubled by the agency’s handling of domestic communications. In an interview, Mr. Holt disputed assertions by Justice Department and national security officials that the overcollection was inadvertent. “Some actions are so flagrant that they can’t be accidental,” Mr. Holt said.

Note: For lots more from major media sources on the ever-increasing government and coroporate threats to privacy, click here.


Swine flu shots may go to kids first, Sebelius says
2009-06-16, USA Today/Associated Press
Posted: 2009-06-23 13:39:52
http://www.usatoday.com/news/health/2009-06-16-swine-flu-vaccine_N.htm

Schoolchildren could be first in line for swine flu vaccine this fall — and schools are being put on notice that they might even be turned into shot clinics. Health and Human Services Secretary Kathleen Sebelius said Tuesday she is urging school superintendents around the country to spend the summer preparing for that possibility, if the government goes ahead with mass vaccinations. "If you think about vaccinating kids, schools are the logical place," Sebelius told The Associated Press. No decision has been made yet on whether and how to vaccinate millions of Americans against the new flu strain that the World Health Organization last week formally dubbed a pandemic, meaning it now is circulating the globe unchecked. But the U.S. is pouring money into development of a vaccine in anticipation of giving at least some people the shots. While swine flu doesn't yet seem any more lethal than the regular flu that each winter kills 36,000 people in the U.S. alone, scientists fear it may morph into a more dangerous type. Even in its current form, the WHO says about half of the more than 160 people worldwide killed by swine flu so far were previously young and healthy. If that trend continues, "the target may be school-age children as a first priority" for vaccination, Sebelius said Tuesday. "That's being watched carefully." The last mass vaccination against a different swine flu, in the U.S. in 1976, was marred by reports of a paralyzing side effect — for a feared outbreak that never happened. The secretary said: "The worst of all worlds is to have the vaccine cause more damage than the flu potential."

Note: This article admits "swine flu doesn't yet seem any more lethal than the regular flu that each winter kills 36,000 people in the U.S. alone." Be very cautious around any vaccination campaign. Vaccines are extremely poorly regulated and known to fill the wallets of rich politicians invested in them. For lots more reliable, verifiable information on this, click here.


Lawmakers Reveal Health-Care Investments
2009-06-13, Washington Post
Posted: 2009-06-23 13:36:20
http://www.washingtonpost.com/wp-dyn/content/article/2009/06/12/AR20090612040...

Almost 30 key lawmakers helping draft landmark health-care legislation have financial holdings in the industry, totaling nearly $11 million worth of personal investments in a sector that could be dramatically reshaped by this summer's debate. The list of members who have personal investments in the corporations that will be affected by the legislation -- which President Obama has called this year's highest domestic priority -- includes Congress's most powerful leaders and a bipartisan collection of lawmakers in key committee posts. Their total health-care holdings could be worth $27 million, because congressional financial disclosure forms released yesterday require reporting of only broad ranges of holdings rather than precise values of assets. Senate Majority Leader Harry M. Reid (D-Nev.), for instance, has at least $50,000 invested in a health-care index, and Sen. Judd Gregg (R-N.H.), a senior member of the health committee, has between $254,000 and $560,000 worth of stock holdings in major health-care companies, including Bristol-Myers Squibb and Merck. The family of Rep. Jane Harman (D-Calif.), a senior member of the House Energy and Commerce Committee drafting that chamber's legislation, held at least $3.2 million in more than 20 health-care companies at the end of last year. "If someone is going to be substantially enriched by the consequences of the vote, particularly if it represents a meaningful amount of their net worth, then there is a problem," said Harlan Krumholz, a professor of medicine at Yale University.

Note: For more powerful information on major corruption in health care reform, click here. For lots more on government corruption from reliable, verfiiable sources, click here.


Torture, the painful truth
2009-06-15, Los Angeles Times
Posted: 2009-06-23 13:32:59
http://www.latimes.com/news/opinion/la-oe-ehrenreich15-2009jun15,0,512919.story

Perhaps we protest too much. Torture, after all, is a venerable American tradition. If not quite as homespun as apple pie or lynching, it is at least as old as our imperial aspirations. We were waterboarding captives in one of our earliest wars of occupation, the Philippine-American War, which cost as many as 1 million civilian lives. In 1902, Teddy Roosevelt himself wrote with laconic praise of "the old Filipino method." Other techniques, crude or sophisticated, have filled the war bag since. CIA interrogation manuals from the 1960s, which lay out the basic stress-position and sleep- and sensory-deprivation techniques later applied at Bagram and Guantanamo, have been public since 1997. Despite our protestations, we have little to be surprised about. Now, when President Obama vows that "the United States does not torture" and spars with the former vice president over details, he crosses his fingers behind his back and saves himself a loophole. Via "extraordinary rendition" -- a Clinton administration innovation -- our government is still free to outsource torture and claim it doesn't know. The Obama administration has been relying increasingly on foreign intelligence services to detain and interrogate our suspects for us. Despite hundreds of front-page stories, we pretend we didn't know, that it was all somehow kept secret from us. This blindness serves a function. By declaring torture anomalous, by pushing it once again to the margins of legality, we can preserve a vision of U.S. military power -- and of American empire -- that is essentially benevolent. [But] maintaining military and economic hegemony over the planet remains an inherently bloody affair. Empire is a synonym for subjugation, and hence for violence on a massive scale.

Note: For a retired Marine Corps general's understanding of the real reasons behind both torture and mass slaughter of civilian populations by the US military, click here.


Military spending sets new record
2009-06-08, BBC News
Posted: 2009-06-14 14:42:09
http://news.bbc.co.uk/2/hi/business/8086117.stm

Global military spending rose 4% in 2008 to a record $1,464bn (Ł914bn) - up 45% since 1999, according to the Stockholm-based peace institute Sipri. "The global financial crisis has yet to have an impact on major arms companies' revenues, profits and order backlogs," Sipri said. Peace-keeping operations - which also benefit defence firms - rose 11%. Missions were launched in trouble spots such as Darfur and the Democratic Republic of the Congo. "Another record was set, with the total of international peace operation personnel reaching 187,586," said Sipri. As the world's aerospace and defence industry prepares for next week's Paris air show centenary, it seems much of the focus is set to shift away from troubled civilian aircraft makers, which are struggling with reduced orders from recession-hit airlines, towards the companies that make fighter jets and other military hardware. In total, the 100 leading defence manufacturers sold arms worth $347bn during 2007, the most recent year for which reliable data are available. Almost all the companies were American or European. "Since 2002, the value of the top 100 arms sales has increased by 37% in real terms," Sipri said. US military spending accounted for 58% of the total global spending increase during the decade, with extra funds set aside to fight the "war on terror". "The idea of the 'war on terror' has encouraged many countries to see their problems through a highly militarised lens, using this to justify high military spending," said Sam Perlo-Freeman, head of the military expenditure project at Sipri.

Note: With all of the government cost-cutting in so many sectors, why aren't more people calling for military cutbacks? For a top U.S. general's insight into the profiteering that drives war (and "peacekeeping" operations as well), click here.


The Economy Is Still at the Brink
2009-06-07, New York Times
Posted: 2009-06-14 14:39:05
http://www.nytimes.com/2009/06/07/opinion/07cohanWEB.html

Whether at a fund-raising dinner for wealthy supporters in Beverly Hills, or at an Air Force base in Nevada, or at Charlie Rose’s table in New York City, President Obama is conducting an all-out campaign to try to make us feel a whole lot better about the economy as quickly as possible. “It’s safe to say we have stepped back from the brink, that there is some calm that didn’t exist before,” he told donors at the Beverly Hilton Hotel late last month. Mr. Obama thinks that the way to revive the economy is to restore confidence in it. If the mood is right, the capital will flow. But this belief is dangerously misguided. We are sympathetic to the extraordinary challenge the president faces, but if we’ve learned anything at all two years into the worst financial crisis of our lifetimes, it is that a capital-markets system this dependent on public confidence is a shockingly inadequate foundation upon which to rest our economy. We have both spent large chunks of our lives working on Wall Street, absorbing its ethic and mores. We’re concerned that nothing has really been fixed. We’re doubly concerned that people appear to feel the worst of the storm is over — and in this, they are aided and abetted by ... the fact that the Dow has increased by 35 percent or so since Mr. Obama started to lay out his economic plans in March. But wishing for improvement and managing by the Dow’s swings are a fool’s game. The storm is not over, not by a long shot. Huge structural flaws remain in the architecture of our financial system, and many of the fixes that the Obama administration has proposed will do little to address them and may make them worse.

Note: For many more important reports shedding light on the hidden realities of the US and world economic crisis, click here.


Fed Would Be Shut Down If It Were Audited, Expert Says
2009-06-10, CNBC News
Posted: 2009-06-14 14:33:18
http://www.cnbc.com/id/31204170

The Federal Reserve's balance sheet is so out of whack that the central bank would be shut down if subjected to a conventional audit, Jim Grant, editor of Grant's Interest Rate Observer, told CNBC. With $45 billion in capital and $2.1 trillion in assets, the central bank would not withstand the scrutiny normally afforded other institutions, Grant said. "If the Fed examiners were set upon the Fed's own documents ... to pass judgment on the Fed's capacity to survive the difficulties it faces in credit, it would shut this institution down," he said. "The Fed is undercapitalized in a way that Citicorp is undercapitalized." Grant said he would support legislation currently making its way through Congress calling for an audit of the Fed. Moreover, he criticized the way the Fed has managed the financial crisis, saying the central bank's target rate should not be around zero. "I think zero is the wrong rate for almost any economy," Grant said, adding the Fed has "embarked on a vast experiment in moral hazard. Interest rates are the traffic signals in a market economy, and everything's green. ... You have to wonder whether these interest rates are the right clearing rate or rather they are the imposition of a central bank." Amid a disparity between analysts predicting there will be no rate hikes soon and the fed funds futures indicating tightening by the end of the year, Grant said he thinks the Fed indeed will begin raising rates as inflation creeps into the picture. Fed funds futures have fully priced in as much as a half-point rise in the target rate from its current range of zero to 0.25 percent. "If the hairs on the back of your neck stand up when there's too much unanimity of opinion, then one begins to worry about this," he said. "The Fed proverbially has been late."

Note: For an astonishing five-minute video clip of a Congressional hearing where the Inspector General of the Fed acknowledges she knows almost nothing about trillions of dollars missing from the Fed, click here. For many more important reports shedding light on the hidden realities of the economic crisis, click here.


UN announces launch of world’s first tuition-free, online university
2009-05-19, UN News Centre
Posted: 2009-06-14 14:25:34
http://www.un.org/apps/news/story.asp?NewsID=30848

A leading arm of the United Nations working to spread the benefits of information technology today announced the launch of the first ever tuition-free online university. As part of this year’s focus on education, the UN Global Alliance for Information and Communication Technology and Development (GAID) presented the newly formed University of the People, a non-profit institution offering higher education to the masses. For hundreds of millions of people around the world higher education is no more than a dream, Shai Reshef, the founder of the University of the People, told reporters. They are constrained by finances, the lack of institutions in their region, or they are not able to leave home to study at a university for personal reasons. Mr. Reshef said that this University opened the gate to these people to continue their studies from home and at minimal cost by using open-source technology, open course materials, e-learning methods and peer-to-peer teaching. Admission opened just over two weeks ago and without any promotion some 200 students from 52 countries have already registered, with a high school diploma and a sufficient level of English as entry requirements. Students will be placed in classes of 20, after which they can log on to a weekly lecture, discuss its themes with their peers and take a test all online. There are voluntary professors, post-graduate students and students in other classes who can also offer advice and consultation. For the University to sustain its operation, it needs 15,000 students and $6 million, of which Mr. Reshef has donated $1 million of his own money.


U.S. prison population dwarfs that of other nations
2008-04-23, New York Times
Posted: 2009-06-14 14:14:11
http://www.nytimes.com/2008/04/23/world/americas/23iht-23prison.12253738.html

The United States has less than 5 percent of the world's population. But it has almost a quarter of the world's prisoners. Indeed, the United States leads the world in producing prisoners, a reflection of a relatively recent and now entirely distinctive American approach to crime and punishment. Americans are locked up for crimes — from writing bad checks to using drugs — that would rarely produce prison sentences in other countries. And in particular they are kept incarcerated far longer than prisoners in other nations. Criminologists and legal scholars in other industrialized nations say they are mystified and appalled by the number and length of American prison sentences. The United States has, for instance, 2.3 million criminals behind bars, more than any other nation. The United States ... has 751 people in prison or jail for every 100,000 in population. (If you count only adults, one in 100 Americans is locked up.) The median among all nations is about 125, roughly a sixth of the American rate. "Far from serving as a model for the world, contemporary America is viewed with horror," James Whitman, a specialist in comparative law at Yale, wrote last year in Social Research. Prison sentences here have become "vastly harsher than in any other country to which the United States would ordinarily be compared," Michael Tonry, a leading authority on crime policy, wrote.

Note: Many people are not aware that violent crime in the US has dropped by over 50% in the last 15 years. Yet the prison population continues to grow rapidly at the same time. For more on this, click here.


U.S. Accidentally Releases List of Nuclear Sites
2009-06-03, New York Times
Posted: 2009-06-08 09:52:34
http://www.nytimes.com/2009/06/03/us/03nuke.html

The federal government mistakenly made public a 266-page report, its pages marked “highly confidential,” that gives detailed information about hundreds of the nation’s civilian nuclear sites and programs, including maps showing the precise locations of stockpiles of fuel for nuclear weapons. The publication of the document was revealed Monday in an online newsletter devoted to issues of federal secrecy. It ... prompted a flurry of investigations in Washington into why the document had been made public. On Tuesday evening, after inquiries from The New York Times, the document was withdrawn from a Government Printing Office Web site. The information, considered confidential but not classified, was assembled for transmission later this year to the International Atomic Energy Agency as part of a process by which the United States is opening itself up to stricter inspections in hopes that foreign countries, especially Iran and others believed to be clandestinely developing nuclear arms, will do likewise. President Obama sent the document to Congress on May 5 for Congressional review and possible revision, and the Government Printing Office subsequently posted the draft declaration on its Web site. Steven Aftergood, a security expert at the Federation of American Scientists in Washington, revealed the existence of the document on Monday in Secrecy News, an electronic newsletter he publishes on the Web. Mr. Aftergood expressed bafflement at its disclosure, calling it “a one-stop shop for information on U.S. nuclear programs.” The report lists many particulars about nuclear programs and facilities at the nation’s three nuclear weapons laboratories — Los Alamos, Livermore and Sandia — as well as dozens of other federal and private nuclear sites.

Note: For lots more on government secrecy from reliable sources, click here.


Drug Agency May Reveal More Data on Actions
2009-06-02, New York Times
Posted: 2009-06-08 09:49:14
http://www.nytimes.com/2009/06/02/health/policy/02fda.html

For years, the Food and Drug Administration has withheld information about drugs and medical devices from the public when their makers cite trade secrecy — even in cases where the agency suspects that the products are causing serious illness or death. Now the new leadership at the F.D.A. may change that. The Obama administration ... is setting up a task force within the agency to recommend ways to reveal more information about F.D.A. decisions, possibly including the disclosure of now secret data about drugs and devices under study. The goal is to open up a system in which the agency failed to inform the public that a widely prescribed heartburn drug was especially toxic to babies; that a diabetes medicine and a painkiller increased heart attack risks; and that antidepressants increased suicidal thoughts and behavior in children and teenagers. “Many people have been harmed over the last decade because the F.D.A. has treated clinical trial results of drugs and devices as trade secrets,” said Dr. Steven Nissen, a cardiologist at the Cleveland Clinic who has campaigned for the release of such information. In 2007, Dr. Nissen published a study showing that Avandia, a popular diabetes medicine made by GlaxoSmithKline, increased the risk of heart attack by 42 percent. The data Dr. Nissen used was made public because of a lawsuit, but the agency had known of the possible risk for nearly two years. Repeated scandals led the Bush administration in 2005 to promise to make public its product safety investigations more quickly, but it did not recommend changing the laws and regulations that govern the release of trade secrets and agency records.

Note: For a powerful summary of corrupt practices by government and corporations in the pharmaceutical industry, click here.


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