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.

Murder and manslaughter dropped almost 4 percent last year, as reported crime overall fell around the country, according to new data released ... by the FBI. The 3.9 percent decline in killings reported to police was part of a nationwide drop in violent crime of 1.9 percent from 2007 to 2008. Rapes declined 1.6 percent, to the lowest national number in 20 years -- about 89,000. The statistics are based on crimes reported to police, who then forward the information to the FBI. There were 14,180 murder victims in the United States last year. ''What has been impressive has been how flat all the violent crime rates have been since 2000. To a large degree that's still the case, but the striking change this year has been murder,'' said Alfred Blumstein, a professor of criminal justice at Carnegie-Mellon University. The figures show that crime has come way down since its peak in the early 1990's. ''These are rates we haven't seen since the 1960's, even though the change from year to year has been rather small,'' said Blumstein. Property crimes declined overall, by 0.8 percent, but that was driven mostly by a 12.7 percent drop in car thefts. The other major categories of property crime -- burglaries and larceny-thefts -- both rose. Typically, crime is expected to rise during economic hard times, but Blumstein said last year's data was too early in the economic cycle to reflect that, because the most serious economic impacts came toward the end of 2008, and may not have affected teenagers -- the group most likely to turn to crime as their job prospects dwindle.

Note: What this report completely fails to report is that violent crime is down over 50% since 1994! Why does the major media consistently fail to report this awesome news? For verifiable information on this, click here.

Diebold Inc. has sold its money-losing U.S. election-systems business, just seven years after acquiring it amid hopes of rising demand for voting technology upgrades in the wake of the 2000 presidential election fiasco. Diebold [said] it sold the voting-machine unit to privately held Election Systems & Software Inc. for $5 million, about one-fifth of what it paid in 2002. "There were assumptions we made in that space that didn't materialize," Diebold spokesman Mike Jacobsen said. Diebold, which was the industry's biggest maker of electronic voting machines heading into the 2004 presidential election, was in the spotlight as concerns increased about the reliability and security of the electronic systems. Diebold also suffered from a perception problem when the company's then-Chief Executive Walden O'Dell very publicly supported and fundraised for President George W. Bush in his re-election campaign.

Note: This article fails to mention that the merger of Diebold and ES&S creates a major monopoly on US voting machines in the hands of companies owned by staunch conservatives. For more vital information on this and the suspicious death of the principal witness related to Karl Rove in an key Ohio elections case, click here.

Paranoid, competitive and fuelled by guns, alcohol and steroids. That is how one senior contractor in Baghdad describes the private security industry operating in the city's Green Zone. It was the world to which Danny Fitzsimons, a 29-year-old former soldier suffering from post-traumatic stress disorder and paranoia, and with an extensive criminal past, returned three weeks ago. Despite rules against alcohol, his ArmorGroup colleagues welcomed him with a drinking session. A fight broke out and he shot and killed two of them – a Briton, Paul McGuigan, and an Australian, Darren Hoare – then wounded an Iraqi, Arkhan Mahdi. He faces a premeditated murder charge and execution if found guilty. Mr Fitzsimons's family is determined to save him and say he was suffering from severe psychiatric problems after a brutal career in the Army and in the security industry. But those on the ground hold little hope. They are already resigned to Mr Fitzsimons's execution and say that he is a tiny pawn in a huge, expensive and vicious game of chess. They say the private security business in Iraq is in a vice-like crush. The gold rush that began with the conflict in 2003 is drying up. Contracts are not as lucrative, the trend is towards employing Iraqis instead of Westerners and, crucially, the Iraqi authorities ... are clamping down. "We are loathed out here. We are the single most hated entity in Iraq," said Ethan Madison, a security contractor who has worked in Baghdad for five years.

Note: For lots more on the illegal activities of US military contractors in Iraq and Afghanistan, click here.

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.

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.

More than five years ago, Congress and President Bush created the 9/11 commission. Soon after its creation, the president’s chief of staff directed all executive branch agencies to cooperate with the commission. The commission’s mandate was sweeping and it explicitly included the intelligence agencies. But the recent revelations that the C.I.A. destroyed videotaped interrogations of Qaeda operatives leads us to conclude that the agency failed to respond to our lawful requests for information about the 9/11 plot. Those who knew about those videotapes — and did not tell us about them — obstructed our investigation. No one in the administration ever told the commission of the existence of videotapes of detainee interrogations. We did ask, repeatedly, for the kind of information that would have been contained in such videotapes. Beginning in June 2003, we requested all reports of intelligence information ... that had been gleaned from the interrogations of 118 named individuals, including both Abu Zubaydah and Abd al Rahim al-Nashiri, two senior Qaeda operatives, portions of whose interrogations were apparently recorded and then destroyed. The C.I.A. gave us many reports summarizing information gained in the interrogations. But the reports raised almost as many questions as they answered. So, in October 2003, we sent another wave of questions to the C.I.A.’s general counsel. The general counsel responded in writing with non-specific replies. The agency did not disclose that any interrogations had ever been recorded or that it had held any further relevant information, in any form. Government officials decided not to inform a lawfully constituted body, created by Congress and the president, to investigate one the greatest tragedies to confront this country. We call that obstruction.

Note: The authors of this op-ed, Thomas H. Kean and Lee H. Hamilton, served as chairman and vice chairman, respectively, of the 9/11 Commission.

A Senate bill would offer President Obama emergency control of the Internet and may give him a "kill switch" to shut down online traffic by seizing private networks -- a move cybersecurity experts worry will choke off industry and civil liberties. Details of a revamped version of the Cybersecurity Act of 2009 emerged late Thursday, months after an initial version authored by Sen. Jay Rockefeller, D-W.V., was blasted in Silicon Valley as dangerous government intrusion. "In the original bill they empowered the president to essentially turn off the Internet in the case of a 'cyber-emergency,' which they didn't define," said Larry Clinton, president of the Internet Security Alliance, which represents the telecommunications industry. The new legislation allows the president to "declare a cybersecurity emergency" relating to "non-governmental" computer networks and make a plan to respond to the danger, according to an excerpt published online -- a broad license that rights experts worry would give the president "amorphous powers" over private users. "As soon as you're saying that the federal government is going to be exercising this kind of power over private networks, it's going to be a really big issue," Lee Tien, a senior staff attorney with the Electronic Frontier Foundation.

Note: For revealing reports from major media sources on threats to civil liberties, click here.

[President] Barack Obama has launched a fresh operation to find [Osama bin Laden]. Working with the Pakistani Army, elite squads of U.S. and British special forces were sent into Waziristan this summer to 'hunt and kill' the shadowy figure intelligence officers still call 'the principal target' of the war on terror. This new offensive is, of course, based on the premise that the 9/11 terrorist is alive. Yet what if he isn't? What if he has been dead for years, and the British and U.S. intelligence services are actually playing a game of double bluff? What if everything we have seen or heard of him on video and audio tapes since the early days after 9/11 is a fake - and that he is being kept 'alive' by the Western allies to stir up support for the war on terror? Incredibly, this is the breathtaking theory that is gaining credence among political commentators, respected academics and even terror experts. Still more questions have been raised with the publication in America and Britain of a book called Osama Bin Laden: Dead or Alive? Written by political analyst and philosopher Professor David Ray Griffin, ... it is provoking shock waves - for it goes into far more detail about his supposed death and suggests there has been a cover-up by the West. The book claims that Bin Laden died of kidney failure, or a linked complaint, on December 13, 2001, while living in Afghanistan's Tora Bora mountains close to the border with Waziristan. His burial took place within 24 hours, in line with Muslim religious rules, and in an unmarked grave, which is a Wahhabi custom. The author insists that the many Bin Laden tapes made since that date have been concocted by the West to make the world believe Bin Laden is alive. Could it be that, for years, he's just been smoke and mirrors?

Note: Hundreds of scholars, officials and professionals have raised questions about bin Laden, Al Qaeda, and other aspects of the official conspiracy about the events of 9/11. Click here and here to read their concerns.

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.

The Obama administration wants to maintain the secrecy of terrorist watch-list information it routinely shares with federal, state and local agencies, a move that rights groups say would make it difficult for people who have been improperly included on such lists to challenge the government. Intelligence officials in the administration are pressing for legislation that would exempt "terrorist identity information" from disclosure under the Freedom of Information Act. Such information -- which includes names, aliases, fingerprints and other biometric identifiers -- is widely shared with law enforcement agencies and intelligence "fusion centers," which combine state and federal counterterrorism resources. Advocates for civil liberties and open government argue that the administration has not proved the secrecy is necessary and that the proposed changes could make the government less accountable for errors on watch lists. The proposed FOIA exemption has been included in pending House and Senate intelligence authorization bills at the administration's request. "Instead of enhancing accountability, this would remove accountability one or two steps further away," said Steven Aftergood, director of the Federation of American Scientists' Project on Government Secrecy. David Sobel, senior counsel for the Electronic Frontier Foundation, a privacy advocacy group, said the government has successfully used existing FOIA exemptions to deny requests for watch-list records. Rather than expanding the list of FOIA exemptions, Congress should pay more attention to improving the procedures for helping people who have been improperly included on the watch list, Sobel said. "There's a serious redress problem," he said. "That's the issue that needs to be addressed."

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

Actor Charlie Sheen has written a letter to President Barack Obama requesting a meeting over Sheen's theories about the 9/11 terrorist attacks. The day of Sept. 11, 2001, saw America hit by the worst terrorist atrocities in the country's history, including an attack in New York which killed almost 3,000 people. Sheen has always been outspoken about his views on the attacks, supporting a conspiracy theory that the U.S. government at the time defrauded the public with its official story about the incident. The star has now written to Obama asking him to reopen the investigation into 9/11. The note, entitled "20 Minutes With The President," is written as a fictional meeting with Obama, in which Sheen urges the leader to follow through his promises of change, accountability and government transparency by using his powers to look into the actions of George W. Bush's previous administration. Sheen hopes the president will take note of his campaign and grant him a meeting.

Note: To watch an excellent six-minute video narrated by Sheen asking hard questions to the president, click here. For a powerful summary of many unanswered questions raised by the official account of 9/11, click here.

Security contractors at the giant US Embassy in Kabul were accused yesterday of fostering a “Lord of the Flies environment” built on abuse and humiliating initiation rituals. The allegations, made by the independent Project On Government Oversight, are contained in a report submitted to Hillary Clinton, the US Secretary of State. The report is based on e-mails, some of which describe the alleged abuse of Afghan nationals. Among those implicated are Britons employed by ArmorGroup North America, the contractor providing security at the embassy, where nearly 1,000 diplomats and support staff work. The report quotes an e-mail from a guard currently working for the contractor, describing scenes of guards and supervisors “peeing on people, eating potato chips out of [buttock] cracks” and drinking “vodka shots out of [buttock] cracks”. In another incident, a male Afghan caterer complained last month of being grabbed by a supervisor and told: “You are very good for f***ing.” The supervisor, who was in only his underwear, also brandished bottles of alcohol. The allegations at the Kabul embassy come in the wake of scandals surrounding Blackwater, another security contractor, in Afghanistan and Iraq, where it has been accused of fraud, abuse and involvement in civilian deaths.

Note: For lots more on the illegal activities of military contractors in Afghanistan and Iraq, click here.

In an attempt to get to the bottom of what really happened on 9/11, citizen investigator Aidan Monaghan has filed dozens of Freedom of Information Act (FOIA) requests with federal agencies such as the FBI, SEC, [and] Department of the Navy. Agency after agency has refused to comply with his requests, instead claiming that the information cannot be found, does not exist, [or is "exempt from disclosure."] The FBI has put an exemption on all of their 9/11 information and will release information only if compelled to do so by a lawsuit, of which Monaghan has filed two. The list of FOIAs that Monaghan has filed which have yielded no information is long. He asked the Secret Service for documents that reveal what time former Vice President Dick Cheney entered the Presidential Emergency Operations Center (PEOC), as well as documents pertaining to the names of persons admitted to PEOC. Reply: no records or documents pertaining to your request. He asked the SEC for a bibliography of the investigation records that were located in the SEC’s offices on floors 11-13 in World Trade Center 7. The reply: did not locate or identify any information responsive to your request. Monaghan asked the Naval Surface Warfare Center for records about the research and development of nano-sized aluminum powders or nano-sized iron oxide powders. Reply: have not found any records responsive to your request. “I’m beginning to wonder if the FOIA is just a lot of theatre for public consumption to provide a perception that yes, government is accessible, it’s transparent,” said Monaghan. “For two years now I’ve tried to pull as much 9/11 info from the federal government as I can, and the most noteworthy thing I’ve found is the absence of information. Material that should be there just isn’t.”

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

Japan's next prime minister might be nicknamed "the alien," but it's his wife who claims to have had a close encounter with another world. "While my body was asleep, I think my soul rode on a triangular-shaped UFO and went to Venus," Miyuki Hatoyama, the wife of premier-in-waiting Yukio Hatoyama, wrote in a book published last year. "It was a very beautiful place and it was really green." Yukio Hatoyama is due to be voted in as premier on September 16 following his party's crushing election victory over the long-ruling Liberal Democratic Party Sunday. Miyuki, 66, described the extraterrestrial experience, which she said took place some 20 years ago, in a book entitled Very Strange Things I've Encountered. When she awoke, Japan's next first lady wrote, she told her now ex-husband that she had just been to Venus. He advised her that it was probably just a dream. "My current husband has a different way of thinking," she wrote. Yukio Hatoyama, 62, the rich grandson of a former prime minister, was once nicknamed "the alien" for his prominent eyes. Miyuki, also known for her culinary skills, spent six years acting in the Takarazuka Revue, an all-female musical theater group. She met the U.S.-educated Yukio while living in America.

Note: For an intriguing ABC special on alien abductions, click here.

Twenty-three years to the day after he went to work with vinyl chloride and other toxic chemicals at a plant in Lake Charles, Louisiana, Dan Ross died of a rare brain cancer. He was 46 years old, convinced that his job had killed him. His wife, Elaine, sued her husband's former employer and, over the next decade, the process of legal discovery led deeper and deeper into the inner chambers of the chemical industry and its Washington trade association. Hundreds of thousands of pages of documents were unearthed. In TRADE SECRETS: A MOYERS REPORT, journalist Bill Moyers and producer Sherry Jones investigated the Ross archive – secrets the chemical industry never intended the public to see – and discovered a shocking story. The confidential papers reveal the industry's early knowledge of vinyl chloride's dangerous effects, as well as the industry's long silence on the subject. The program also reports a much larger story. Buried in the thousands of pages of documents – minutes from board meetings, reports from industry scientists, internal memoranda – is a never-before-told account of a campaign to limit the regulation of toxic chemicals and any liability for their effects, at the same that the companies work to withhold vital information about risks from workers, the government – and the public. Over the last five decades, more than 75,000 chemicals have been produced, turned into consumer products or released into the environment. Today, every man, woman and child has synthetic chemicals in their bodies. No child is born free of them. Are they safe? Does anyone know?

Note: This article also mentions that even though Moyers never lived near a chemical plant, tests showed that his body contained a chemical soup of 84 industrial chemicals, including 31 different types of PCBs, 13 different dioxins, and pesticides such as DDT. Why are these chemicals so poorly studied and the dangerous effects hidden from us? For lots more from reliable sources on corporate corruption, click here.

Doctors and psychologists the CIA employed to monitor its "enhanced interrogation" of terror suspects came close to, and may even have committed, unlawful human experimentation, a medical ethics watchdog has alleged. Physicians for Human Rights (PHR), a not-for-profit group that has investigated the role of medical personnel in alleged incidents of torture at Guantánamo, Abu Ghraib, Bagram and other US detention sites, accuses doctors of being far more involved than hitherto understood. PHR says health professionals participated at every stage in the development, implementation and legal justification of what it calls the CIA's secret "torture programme". The most incendiary accusation of PHR's latest report, Aiding Torture, is that doctors actively monitored the CIA's interrogation techniques with a view to determining their effectiveness, using detainees as human subjects without their consent. The report concludes that such data gathering was "a practice that approaches unlawful experimentation". Human experimentation without consent has been prohibited in any setting since 1947 [with] the Nuremberg Code, which resulted from the prosecution of Nazi doctors. In April, a leaked report from the International Committee of the Red Cross found that medical staff employed by the CIA had been present during waterboarding, and had even used what appeared to be a pulse oxymeter, placed on the prisoner's finger to monitor his oxygen saturation during the procedure. PHR is calling for an official investigation into the role of doctors in the CIA's now widely discredited programme. It wants to know exactly how many doctors participated, what they did, what records they kept and the science that they applied.

Note: To watch a video of a Democracy Now! segment on the PHR report, click here. For astounding information on how MDs participated in the CIA's mind control experiments in the past, click here.

The Obama administration will largely preserve Bush-era procedures allowing the government to search -- without suspicion of wrongdoing -- the contents of a traveler's laptop computer, cellphone or other electronic device. The policy, disclosed ... in a pair of Department of Homeland Security directives, describes more fully than did the Bush administration the procedures by which travelers' laptops, iPods, cameras and other digital devices can be searched and seized when they cross a U.S. border. And it sets time limits for completing searches. Representatives of civil liberties and travelers groups say they see little substantive difference between the Bush-era policy, which prompted controversy, and this one. "It's a disappointing ratification of the suspicionless search policy put in place by the Bush administration," said Catherine Crump, staff attorney for the American Civil Liberties Union. "It doesn't deal with the fundamental problem, which is that under the policy, government officials are free to search people's laptops and cellphones for any reason whatsoever." "Under the policy begun by Bush and now continued by Obama, the government can open your laptop and read your medical records, financial records, e-mails, work product and personal correspondence -- all without any suspicion of illegal activity," said Elizabeth Goitein, who leads the liberty and national security project at the nonprofit Brennan Center for Justice.

Note: For important revelations of government threats to civil liberties, click here.

The secret overseas "black sites" where the CIA conducted the interrogations are empty now, if not already dismantled. They were never examined by a congressional committee, nor inspected by the international Red Cross. The black sites not only imprisoned men but reduced them to a near helpless state. The aim, as outlined in one document, was to teach every detainee "to perceive and value his personal welfare, comfort and immediate needs more than the information he is protecting." The prisoners' arrival -- almost always in diapers -- was engineered to achieve that end. After being shaved, stripped and photographed nude, detainees were examined by CIA medical and psychological personnel. Then came a preliminary interrogation that would determine the prisoners' fate. Only those considered extremely cooperative would avoid a trio of techniques designed to produce a "baseline, dependent" state: the deprivation of clothes, solid food and sleep. Follow-up sessions would start with the prisoner standing with his back against a wall and a towel or collar to prevent whiplash wrapped around his neck. He could be thrown against the wall just once "to make a point, or 20 to 30 times consecutively." Prisoners so abhorred the repeated slamming that they would remain in so-called stress positions, such as painful kneeling postures, for hours to avoid a return to the wall, according to one Dec. 30, 2004, memo that amounts to a CIA blueprint for breaking a detainee's will. Earlier this year, the Obama administration released a series of Justice Department memos laying out legal rationales for the array of coercive interrogation methods the CIA employed.

Note: For further revelations from major media sources on the illegal methods used by the US government in its wars around the world, click here.

When the CIA revived a plan to kill or capture [alleged] terrorists in 2004, the agency turned to the well-connected security company then known as Blackwater USA. With Blackwater's lucrative government security work and contacts arrayed in hot spots around the world, company officials offered the services of foreigners supposedly skilled at tracking [people] in lawless regions and countries where the CIA had no working relationships with the government. But the CIA's use of the private contractor as part of its now-abandoned plan to dispatch death squads skirted concerns now re-emerging with recent disclosures about Blackwater's role. Blackwater's later hiring of several senior CIA officials who were involved in or aware of the secret program, including one of the men who ran the operation, showed the blurred lines of using a private contractor for such a highly classified and dangerous project. The 2004 decision by CIA officials to entrust the North Carolina-based company with such a sensitive overseas operation struck some former agency officials as highly unusual. "The question remains: Why do we need Blackwater?" said Charles Faddis, a former department chief at the CIA's Counterterrorism Center who retired in 2008 and was not involved in the secret program. "I remain mystified. This is quintessential CIA work. You wonder what it means that the CIA has to rely on Blackwater? Why are we still funding the CIA?" The former senior CIA official who had knowledge of the program explained that "you wouldn't want to have American fingerprints on it."

Note: For lots more on government corruption, click here.

Speculators now account for half of all traders in the main U.S. oil market, and their growing presence coincided with this decade's historic rise in the price of crude, according to a new Rice University study. The study does not try to prove that speculators caused the price spike, as many politicians and consumer advocates believe. But the authors note that prices rose steadily along with the number of speculative investors, and fell with them as well. Seven years ago, speculators accounted for 20 percent of oil traders on the New York Mercantile Exchange. That number jumped to 55 percent by the time oil prices reached their all-time peak above $145 per barrel last summer. Now oil costs $72, and speculative investors account for half the traders. The government limits the number of oil contracts that each speculator can hold. But under the Commodity Futures Modernization Act [passed in 2000], trades on electronic exchanges or overseas markets don't count toward those limits. The study uses data from the Commodity Futures Trading Commission. Speculators are defined as traders who use oil strictly as a financial investment, those who will never take delivery of a tanker-full of crude. "This confirms what we and others have said for some time," said Tyson Slocum, director of the energy program at the Public Citizen watchdog group. "The good thing from the oil price run-up of 2008 is it has forced Congress to realize there's a problem in these markets, and the answer is re-regulation." The financial industry opposes tightening the regulations.

Note: To read the full study, click here.

Important Note: 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.