News StoriesExcerpts of Key News Stories in Major Media
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.
A widening gap between rich and poor is reshaping the U.S. economy, leaving it more vulnerable to recurring financial crises and less likely to generate enduring expansions. Left unchecked, the decades-long trend toward increasing inequality may ... shake social stability, economists and financial-industry executives say. “Income inequality in this country is just getting worse and worse and worse,” James Chanos, president and founder of New York-based Kynikos Associates Ltd., told Bloomberg Radio this week. “And that is not a recipe for stable economic growth when the rich are getting richer and everybody else is being left behind.” Since 1980, about 5 percent of annual national income has shifted from the middle class to the nation’s richest households. That means the wealthiest 5,934 households last year enjoyed an additional $650 billion -- about $109 million apiece -- beyond what they would have had if the economic pie had been divided as it was in 1980, according to Census Bureau data. Disputes over what constitutes economic fairness are moving to center stage amid a near-stagnant U.S. economy saddled with 9.1 percent unemployment yet boasting record corporate profits.
Note: For key reports from major media sources on income inequality in the US and worldwide, click here.
The world is facing the worst financial crisis since at least the 1930s “if not ever”, the Governor of the Bank of England said last night. Sir Mervyn King was speaking after the decision by the Bank’s Monetary Policy Committee to put Ł75billion of newly created money into the economy in a desperate effort to stave off a new credit crisis and a UK recession. Economists said the Bank’s decision to resume its quantitative easing [QE] showed it was increasingly fearful for the economy, and predicted more such moves ahead. Sir Mervyn said the Bank had been driven by growing signs of a global economic disaster. “This is the most serious financial crisis we’ve seen, at least since the 1930s, if not ever. We’re having to deal with very unusual circumstances, but to act calmly to this and to do the right thing.” Announcing its decision, the Bank said that the eurozone debt crisis was creating “severe strains in bank funding markets and financial markets”. Financial experts said the committee’s actions would be a “Titanic” disaster for pensioners, savers and workers approaching retirement. Under QE, the Bank electronically creates new money which it then uses to buy assets such as government bonds, or gilts, from banks. By increasing the demand for gilts, QE pushes down the interest rate yields paid to holders of these and other bonds. Critics of the policy say it pushes up inflation and drives down sterling.
Note: For lots more on the global financial crisis from reliable sources, click here.
The Defense Department, which has promised to publish a reliable account of how it spends its money by 2017, has discovered that its financial ledgers are in worse shape than expected and that it will have to spend billions of dollars in the coming years to make its financial accounting credible, the Center for Public Integrity reported [on October 13]. The U.S. military has spent more than $6 billion to develop and deploy new financial systems, but the effort has been plagued by significant added overruns and delays, defense officials told the CPI, a nonprofit investigative news organization. The Government Accountability Office said in a report last month that although the services can now fully track incoming appropriations, they still can't demonstrate that their funds are being spent as they should be. The Pentagon’s bookkeeping has come under increased scrutiny as Congress and the Obama administration have vowed to reduce the federal deficit. The department could face substantial cutbacks if a special bipartisan "supercommittee" can’t agree on a formula for reducing the deficit.
Note: For an essay by a top U.S. general revealing how wars are used to bring huge profits to the powerful elite of our world, click here. For lots more from reliable sources on government corruption, click here.
Britain's tax authorities have given Goldman Sachs an unusual and generous Christmas present, leaked documents reveal. In a secret London meeting last December with the head of Revenue, the wealthy Wall Street banking firm was forgiven Ł10m interest on a failed tax avoidance scheme. HM Revenue and Customs sources admit privately that the interest-free deal is "a cock-up" by officials, but refuse to say who was responsible. Documents leaked to Private Eye magazine and published in full by the Guardian record that Britain's top tax official, HMRC's permanent secretary Dave Hartnett, personally shook hands on a secret settlement last December. Hartnett also refused to give the facts about Goldman Sachs to MP Jesse Norman on the Treasury committee last month, claiming disclosure would be illegal. He also refuses to brief ministers on the details. The Ł10m Christmas gift for Goldman was the culmination of a prolonged attempt by the US firm to avoid paying national insurance on huge bonuses for its bankers working in London. The sum was pocket change to Goldman, whose employees received $15.3bn (Ł9.5bn) in pay and bonuses last year.
Note: For lots more from reliable sources on corporate and government corruption, click here and here.
Last week we learned from Reuters that fellow countrymen labeled "militants" by the Obama administration are now unilaterally placed on a "kill list" by "a secretive panel of senior government officials. "This is a real-life death panel inside the highest governmental office in the land -- and, according to Reuters, it acts without "any law establishing its existence or setting out the rules by which it is supposed to operate." This neo-Star Chamber is wholly unprecedented in its willful violations of the U.S. Constitution's due-process provisions -- and our Congress' refusal to even question it is utterly detestable. However, it reminds us that government death panels in general are anything but rare; they are all around us, making blood-curdling decisions to kill people all the time. For example, at the state level, the death panel commonly called the Georgia Board of Pardons and Paroles recently opted to execute Troy Davis, despite compelling evidence calling his conviction into question. Likewise ... the death panel known as the U.S. House Agriculture Appropriations Committee [is] considering cuts to food stamps at a time when Louisiana State University researchers report that between 2,000 and 3,000 elderly Americans are already dying of malnutrition every year.
Note: For key reports on government corruption from major media sources, click here.
Republican presidential contender Ron Paul on [October 5] suggested that the United States could assassinate journalists the same way it targeted Americans with ties to al-Qaida. The Texas congressman again criticized President Barack Obama for approving last week's drone strikes in Yemen against a U.S. citizen who was tracked and executed based on secret intelligence. [Another American citizen] also died in the bombing. Escalating his criticism, Paul told a National Press Club luncheon that if citizens do not protest the deaths, the country will start adding reporters to its list of threats that must be taken out. "Can you imagine being put on a list because you're a threat? What's going to happen when they come to the media? What if the media becomes a threat? ... This is the way this works. It's incrementalism," Paul said. Paul, making his second run for the Republican presidential nomination, has built a die-hard following among the GOP's libertarian wing and has worked to court anti-war conservatives.
Note: For key reports on government corruption from major media sources, click here.
Somewhere, a US government official is reading through a list of those who sent or received an email from Jacob Appelbaum, a 28-year-old computer science researcher at the University of Washington who volunteered for WikiLeaks. Among those listed will be my name, a journalist who interviewed Appelbaum for a book about the digital revolution. Appelbaum is a spokesman for Tor, a free internet anonymising software that helps people defend themselves against internet surveillance. He's spent five years teaching activists around the world how to install and use the service to avoid being monitored by repressive governments. Now, Appelbaum finds himself a target of his own government as a result of his friendship with Julian Assange and the fact WikiLeaks used the Tor software. Appelbaum has not been charged with any wrongdoing; nor has the government shown probable cause that he is guilty of any criminal offence. That matters not a jot, because, as the law stands, government officials don't need a search warrant to access our digital data. Searching someone's home requires a warrant that can only be obtained by proving probable cause, but digital searches require no such burden of proof. Most people are not aware of the ease with which governments – free, open and so-called democratic – can access and peruse our private communications.
Note: For key reports on government threats to privacy from major media sources, click here.
It was the kind of study that made doctors around the world sit up and take notice: Two popular high-blood-pressure drugs were found to be much better in combination than either alone. Unfortunately, it wasn't true. Six and a half years later, the prestigious medical journal the Lancet retracted the paper, citing "serious concerns" about the findings. The damage was done. Doctors by then had given the drug combination to well over 100,000 patients. Instead of protecting them from kidney problems, as the study said the drug combo could do, it left them more vulnerable to potentially life-threatening side effects, later studies showed. Today, "tens of thousands" of patients are still on the dual therapy, according to research firm SDI. When a study is retracted, "it can be hard to make its effects go away," says Sheldon Tobe, a kidney-disease specialist at the University of Toronto. And that's more important today than ever because retractions of scientific studies are surging. Since 2001, while the number of papers published in research journals has risen 44%, the number retracted has leapt more than 15-fold, data compiled for The Wall Street Journal by Thomson Reuters reveal. Just 22 retraction notices appeared in 2001, but 139 in 2006 and 339 last year
Note: To learn lots more of how the medical industry puts profit above public health, click here.
The villages and farming communities that surround Uganda's capital, Kampala, are gripped by fear. Schoolchildren are closely watched by teachers and parents as they make their way home from school. In playgrounds and on the roadside are posters warning of the danger of abduction by witch doctors for the purpose of child sacrifice. The ritual, which some believe brings wealth and good health, was almost unheard of in the country until about three years ago, but it has re-emerged, seemingly alongside a boom in the country's economy. The mutilated bodies of children have been discovered at roadsides, the victims of an apparently growing belief in the power of human sacrifice. Many believe that members of the country's new elite are paying witch doctors vast sums of money for the sacrifices in a bid to increase their wealth. At the Kyampisi Childcare Ministries church, Pastor Peter Sewakiryanga is teaching local children a song called Heal Our Land, End Child Sacrifice. "Child sacrifice has risen because people have become lovers of money. They want to get richer," the pastor says. "They have a belief that when you sacrifice a child you get wealth, and there are people who are willing to buy these children for a price. So they have become a commodity of exchange, child sacrifice has become a commercial business."
The psychedelic drug in magic mushrooms may have lasting medical and spiritual benefits, according to new research from Johns Hopkins School of Medicine. The mushroom-derived hallucinogen, called psilocybin, is known to trigger transformative spiritual states, but at high doses it can also result in "bad trips" marked by terror and panic. "The important point here is that we found the sweet spot where we can optimize the positive persistent effects and avoid some of the fear and anxiety that can occur and can be quite disruptive," says lead author Roland Griffiths, professor of behavioral biology at Hopkins. Giffiths' study involved 18 healthy adults, average age 46. Nearly all the volunteers were college graduates and 78% participated regularly in religious activities; all were interested in spiritual experience. Fourteen months after participating in the study, 94% of those who received the drug said the experiment was one of the top five most meaningful experiences of their lives; 39% said it was the single most meaningful experience. Their friends, family members and colleagues also reported that the psilocybin experience had made the participants calmer, happier and kinder.
Amber Miller accomplished two monumental feats this weekend. Days from her due date, the 27-year-old joined 45,000 other runners to participate in Sunday's Bank of America Chicago Marathon and then gave birth to a baby girl named June hours later. Miller, an avid runner, said she signed up for the 26.2-mile race before finding out she was pregnant. She said she never expected to finish the race. "I was having a conversation with my parents and said, 'You know what? I have no plans of actually finishing,'" she told reporters at Central DuPage Hospital this morning. "I was planning on running half, skipping to the end, then walking across the finish line." But Miller and her husband started running, and just kept going. They ran part of the race and walked the second half as her contractions started. It took the couple 6.5 hours to finish. She said she grabbed something to eat and the two headed to the hospital. "It was very interesting hearing people's reaction," Miller said about crowds watching an extremely pregnant woman among the runners. "I've been running up to this point anyway, so I'm used to it." At 7 pounds, 13 ounces, baby June entered the world at 10:29 p.m. Sunday, just hours after her parents crossed the finish line.
Gillian Tett [is the author of] Fool's Gold: How the Bold Dream of a Small Tribe at J.P. Morgan Was Corrupted by Wall Street Greed and Unleashed a Catastrophe. Tett is a respected business journalist at the Financial Times. Tett successfully pieces together the colorful backstory of the bank's work to win acceptance in the market for its brainchild, turning credit derivatives "from a cottage industry into a mass-production business." With the benefit of hindsight, we know that while these inventions were intended to control risk, they amplified it instead. This novel idea turned noxious when applied broadly to residential mortgages, a game that the rest of Wall Street later entered into with gusto. We learn in deep detail about not only how collateralized debt obligations are assembled but also their many iterations. Perhaps it's noteworthy that Tett's book begins when JPMorgan had the face-value equivalent of $1.7 trillion in derivatives on its books. Today that number has jumped to a mind-boggling $87 trillion. Part of that portfolio includes almost $8.4 trillion in credit derivatives, more than Bank of America's (BAC), Citi's, and Goldman Sachs' (GS) holdings combined.
Note: So JP Morgan has $87 trillion in derivatives, a mass market it helped to create. That is greater than the GDP for the entire world! To verify this, click here. For a New York Times review of this revealing book, click here.
When the Occupy Wall Street protests began three weeks ago, most news organizations were derisive if they deigned to mention the events at all. For example, nine days into the protests, National Public Radio had provided no coverage whatsoever. It is, therefore, a testament to the passion of those involved that the protests not only continued but grew, eventually becoming too big to ignore. Occupy Wall Street is starting to look like an important event that might even eventually be seen as a turning point. The protesters’ indictment of Wall Street as a destructive force, economically and politically, is completely right. Bankers took advantage of deregulation to run wild (and pay themselves princely sums), inflating huge bubbles through reckless lending. The bubbles burst — but bankers were bailed out by taxpayers, with remarkably few strings attached, even as ordinary workers continued to suffer the consequences of the bankers’ sins. Bankers showed their gratitude by turning on the people who had saved them, throwing their support — and the wealth they still possessed thanks to the bailouts — behind politicians who promised to keep their taxes low and dismantle the mild regulations erected in the aftermath of the crisis. Given this history, how can you not applaud the protesters for finally taking a stand?
Note: For insights into the reasons why people have decided they must occupy their cities in protest of the predations of financial corporations, check out our extensive "Banking Bailout" news articles.
Yes, there are a wide array of complaints, demands, and goals from the Wall Street protesters: the collapsing environment, labor standards, housing policy, government corruption, ... and so on. Different people have been affected by different aspects of the same system -- and they believe they are symptoms of the same core problem. I witnessed [many cogent conversations] as I strolled by Occupy Wall Street's many teach-ins this morning. There were young people teaching one another about, among other things, how the economy works, ... the history of centralized interest-bearing currency, the creation and growth of the derivatives industry, and about the Obama administration deciding to settle with, rather than investigate and prosecute the investment banking industry for housing fraud. Anyone who says he has no idea what these folks are protesting is not being truthful. We all know that there are investment bankers working on Wall Street getting richer while things for most of the rest of us are getting tougher. Occupy Wall Street is meant more as a way of life that spreads through contagion, creates as many questions as it answers, aims to force a reconsideration of the way the nation does business and offers hope to those of us who previously felt alone in our belief that the current economic system is broken.
Note: For insights into the reasons why people have decided they must occupy their cities in protest of the predations of financial corporations, check out our extensive "Banking Bailout" news articles.
It began as the brainchild of activists across the border in Canada when an anti-consumerism magazine put out a call in July for supporters to occupy Wall Street. Now, three weeks after a few hundred people heeded that initial call and rolled out their sleeping bags in a park in New York's financial district, they are being joined by supporters in cities across the US and beyond. Protesters against corporate greed, unemployment and the political corruption that they say Wall Street represents have taken to the streets in Boston, Los Angeles, St Louis and Kansas City. The core group, Occupy Wall Street, claims people will take part in demonstrations in as many as 147 US cities this month, while the website occupytogether.org lists 47 US states as being involved. Around the world, protests in Canada, the UK, Germany and Sweden are also planned, they say. The speed of the leaderless movement's growth has taken many by surprise. The movement, which organisers say has its roots in the Arab spring and in Madrid's Puerta del Sol protests, has been galvanised by recent media attention. Last week, the Guardian reported that a NYPD police officer had been filmed spraying four women protesters with pepper spray. On Saturday, a peaceful march on Brooklyn bridge intended as a call to the other four boroughs of New York to join in resulted in 700 arrests. Some protesters claim the police trapped them.
Note: For insights into the reasons why people have decided they must occupy their cities in protest of the predations of financial corporations, check out our extensive "Banking Bailout" news articles.
American militants like Anwar al-Awlaki are placed on a kill or capture list by a secretive panel of senior government officials, which then informs the president of its decisions, according to officials. There is no public record of the operations or decisions of the panel, which is a subset of the White House's National Security Council. Neither is there any law establishing its existence or setting out the rules by which it is supposed to operate. The panel was behind the decision to add Awlaki ... to the target list. He was killed by a CIA drone strike in Yemen late last month. The White House is portraying the killing of Awlaki as a demonstration of President Barack Obama's toughness toward militants who threaten the United States. But the process that led to Awlaki's killing has drawn fierce criticism from both the political left and right. Obama, who ran for president denouncing predecessor George W. Bush's expansive use of executive power in his "war on terrorism," is being attacked in some quarters for using similar tactics. They include secret legal justifications and undisclosed intelligence assessments. Liberals criticized the drone attack on an American citizen as extra-judicial murder. Conservatives criticized Obama for refusing to release a Justice Department legal opinion that reportedly justified killing Awlaki.
Note: State assassination of a citizen without due process would seem to be the ultimate attack on civil liberties. For lots more on such threats from reliable sources, click here.
U.S. officials last week acknowledged that unmanned predator aircraft killed two U.S. citizens, Anwar al-Awlaki and Samir Khan, in Yemen. Yet, U.S. media outlets have chosen to refer to them as "American born" or "U.S.-born," as in "the American-born cleric Anwar al-Awlaki was killed by U.S. armed drones." No concrete proof of their guilt has been furnished beyond what the government and multiple media outlets have reported. In the case of the al-Awlaki killing, U.S. officials said, "Al-Awlaki played a 'significant operational role' in plotting and inspiring attacks on the United States," as they justified the killing of an American citizen. In the post-9/11 world, such reporting garners little attention from the public. But those who believe in the rule of law find such mundane pronouncements frightening. The Sixth Amendment guarantees the accused the right to a public trial by an impartial jury, regardless of his or her ethnic background or previous alleged activities. Government-sanctioned assassinations of U.S. citizens without due process should be discussed rather than blindly accepted as a victory in the war on terror. The obvious follow-up question is: What about other U.S. citizens? Might they also be targeted for assassination without due process? The targeted killings of al-Awlaki and Khan should shock Americans reared on the rule of law, justice, liberty and freedom.
Note: State assassination of a citizen without due process would seem to be the ultimate attack on civil liberties. For lots more on such threats from reliable sources, click here.
The pretrial proceedings of Mexican drug kingpin Jesus Vicente Zambada-Niebla [provide] a glimpse into the transnational business of the Mexican drug cartels, which serve a growing demand for illegal drugs in the U.S. A member of the Sinaloa Cartel, Zambada-Niebla faces federal charges of trafficking tons of narcotics to Chicago and other cities using trains, ships, jets and even submarines between 2005 and 2008. Zambada-Niebla, 35, is considered a narco junior, as the sons of drug kingpins are known in Mexico. They have taken over the control of the cartels started by their fathers. The narco juniors are known for having attended private schools, being well-polished and having an appetite for luxury cars, designer clothing and beauty queens. Since Zambada-Niebla was extraded to Chicago in early 2010, his pretrial proceedings have sparked controversy on both sides of the border. He first complained about jail conditions. Then he dropped a diplomatic bomb, contending that he and another member of the Sinaloa cartel were informants for the Drug Enforcement Administration and had been promised immunity from prosecution. The federal authorities refuted the claim, but acknowledged that fugitive Sinaloa Cartel member and lawyer Humberto Loya Castro was indeed a DEA informant. In Mexico, the drug cartel wars have claimed more than 40,000 lives. The U.S. Justice Department thinks the Mexican cartels operate in more than 1,000 American cities.
Note: Not mentioned in this article or anywhere we've seen in the media is that US government prosecutors are invoking a 30-year-old law known as the Classified Information Procedures Act to assure that classified materials do not become public during the court proceedings. What could they be hiding? Click here for more. For powerful evidence from top reporters that elements within government are involved in drug trafficking, click here.
Rep. Lamar Smith, chairman of the House Judiciary Committee, ... demanded an independent investigation of whether Attorney General Eric Holder misled Congress on what he knew about the botched gun-tracking operation known as "Fast and Furious" - and when he found out about it. The Associated Press reported that the George W. Bush administration conducted a program similar to Fast and Furious, in which Bureau of Alcohol, Tobacco, Firearms and Explosives agents were instructed to let Mexican drug cartel straw purchasers buy guns in the Phoenix area to follow the trail to higher-ups. Known as Operation Wide Receiver, the Bush-era operation also let guns be transferred to suspected arms traffickers. Justice Department prosecutors have brought charges against nine people involved in the operation, according to AP; two have pleaded guilty. Fast and Furious was meant to take down Mexican cartels importing U.S.-bought weapons and shipping drugs to the United States. Phoenix-based ATF agents allowed the gun purchases so they could take down cartel bosses rather than only arresting lower-level purchasers. But the agents lost track of more than 1,000 firearms during the operation last year. Several were later found at the scenes of Mexican drug crimes, according to a report by the House oversight committee.
Note: For key reports from major media sources on government corruption, click here.
After 10 years of war, the vast majority of post-Sept. 11 veterans say the public does not understand the problems faced by those in the military and by their families. The public largely agrees but believes there’s nothing unfair about the outsized burden being shouldered by veterans. The findings are part of a broad new study by the Pew Research Center that documents a growing gap between civilians and a military force that has been put under intense strain over the past decade. Less than 1 percent of the U.S. population has been on active military duty at any given time during the past decade. For many Americans, the wars in Iraq and Afghanistan have been seen only in glimpses, in a newspaper or on television. For many veterans, however, the wars have meant incredible strains that have lasted long beyond their deployments. Roughly 44 percent of post-9/11 veterans say their readjustment to civilian life was difficult, according to the Pew study. By contrast, 25 percent of veterans who served in earlier eras said the same. Nearly four in 10 said that they believe they have suffered from post-traumatic stress, regardless of whether they have been formally diagnosed.
Note: The full study, "War and Sacrifice in the Post-9/11 Era," can be found 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.