For over a decade the CIA has been delivering money to the offices of Afghanistan’s president, Hamid Karzai, in the shadiest ways possible: suitcases, backpacks, and plastic bags full of cash. The New York Times reports that tens of millions of dollars have gone to Karzai’s office. And it doesn’t seem like the CIA is getting what it wants for its money: much of it is used to pay off warlords and politicians, many with ties to the drug trade, fueling the corruption U.S. diplomats have been trying to fight. “The biggest source of corruption in Afghanistan,” an American official told the Times, “was the United States.”

NYT:

For more than a decade, wads of American dollars packed into suitcases, backpacks and, on occasion, plastic shopping bags have been dropped off every month or so at the offices of Afghanistan’s president — courtesy of the Central Intelligence Agency.

All told, tens of millions of dollars have flowed from the C.I.A. to the office of President Hamid Karzai, according to current and former advisers to the Afghan leader.

“We called it ‘ghost money,’ ” said Khalil Roman, who served as Mr. Karzai’s deputy chief of staff from 2002 until 2005. “It came in secret, and it left in secret.”

The C.I.A., which declined to comment for this article, has long been known to support some relatives and close aides of Mr. Karzai. But the new accounts of off-the-books cash delivered directly to his office show payments on a vaster scale, and with a far greater impact on everyday governing.

Moreover, there is little evidence that the payments bought the influence the C.I.A. sought. Instead, some American officials said, the cash has fueled corruption and empowered warlords, undermining Washington’s exit strategy from Afghanistan.

“The biggest source of corruption in Afghanistan,” one American official said, “was the United States.”

The United States was not alone in delivering cash to the president. Mr. Karzai acknowledged a few years ago that Iran regularly gave bags of cash to one of his top aides.

At the time, in 2010, American officials jumped on the payments as evidence of an aggressive Iranian campaign to buy influence and poison Afghanistan’s relations with the United States. What they did not say was that the C.I.A. was also plying the presidential palace with cash — and unlike the Iranians, it still is.

When word of the Iranian cash leaked out in October 2010, Mr. Karzai told reporters that he was grateful for it. He then added: “The United States is doing the same thing. They are providing cash to some of our offices.” (See the video above)

At the time, Mr. Karzai’s aides said he was referring to the billions in formal aid the United States gives. But the former adviser said in a recent interview that the president was in fact referring to the C.I.A.’s bags of cash.

By Cora Currier, ProPublica

Earlier this week, we wrote about a significant but often overlooked aspect of the drone wars in Pakistan and Yemen: so-called signature strikes, in which the U.S. kills people whose identities aren't confirmed. While President Obama and administration officials have framed the drone program as targeting particular members of Al Qaeda, attacks against unknown militants reportedly may account for the majority of strikes.

The government apparently calls such attacks signature strikes because the targets are identified based on intelligence "signatures" that suggest involvement in terror plots or militant activity.

So what signatures does the U.S. look for and how much evidence is needed to justify a strike?

The Obama administration has never spoken publicly about signature strikes. Instead, generally anonymous officials have offered often vague examples of signatures. The resulting fragmentary picture leaves many questions unanswered.

In Pakistan, a signature might include:

Training camps…

• Convoys of vehicles that bear the characteristics of Qaeda or Taliban leaders on the run. – Senior American and Pakistani officials,New York Times, February 2008.
• "Terrorist training camps." – U.S.Diplomatic Cable released by Wikileaks, October 2009.
• Gatherings of militant groups or training complexes. – Current and former officials, Los Angeles Times, January 2010.
• Bomb-making or fighters training for possible operations in Afghanistan…. a compound where unknown individuals were seen assembling a car bomb. – Officials, Los Angeles Times, May 2010.
• Travel in or out of a known al-Qaeda compound or possession of explosives. – U.S. officials, Washington Post, February 2011.
• Operating a training camp… consorting with known militants. – High-level American official, The New Yorker, September 2011.

Continue reading »

By Abrahm Lustgarten, ProPublica, Jan. 25, 2013

Mexico City plans to draw drinking water from a mile-deep aquifer, according to a report in the Los Angeles Times. The Mexican effort challenges a key tenet of U.S. clean water policy: that water far underground can be intentionally polluted because it will never be used.

U.S. environmental regulators have long assumed that reservoirs located thousands of feet underground will be too expensive to tap. So even as population increases, temperatures rise, and traditional water supplies dry up, American scientists and policy-makers often exempt these deep aquifers from clean water protections and allow energy and mining companies to inject pollutants directly into them.

As ProPublica has reported in an ongoing investigation about America's management of its underground water, the U.S. Environmental Protection Agency has issued more than 1,500 permits for companies to pollute such aquifers in some of the driest regions. Frequently, the reason was that the water lies too deep to be worth protecting.

But Mexico City's plans to tap its newly discovered aquifer suggest that America is poisoning wells it might need in the future.

Indeed, by the standard often applied in the U.S., American regulators could have allowed companies to pump pollutants into the aquifer beneath Mexico City.

For example, in eastern Wyoming, an analysis showed that it would cost half a million dollars to construct a water well into deep, but high-quality aquifer reserves. That, plus an untested assumption that all the deep layers below it could only contain poor-quality water, led regulators to allow a uranium mine to inject more than 200,000 gallons of toxic and radioactive waste every day into the underground reservoirs.

But south of the border, worsening water shortages have forced authorities to look ever deeper for drinking water.

Today in Mexico City, the world's third-largest metropolis, the depletion of shallow reservoirs is causing the ground to sink in, iconic buildings to teeter, and underground infrastructure to crumble. The discovery of the previously unmapped deep reservoir could mean that water won't have to be rationed or piped into Mexico City from hundreds of miles away.

According to the Times report, Mexican authorities have already drilled an exploratory well into the aquifer and are working to determine the exact size of the reservoir. They are prepared to spend as much as $40 million to pump and treat the deeper water, which they say could supply some of Mexico City's 20 million people for as long as a century.

Scientists point to what's happening in Mexico City as a harbinger of a world in which people will pay more and dig deeper to tap reserves of the one natural resource human beings simply cannot survive without.

"Around the world people are increasingly doing things that 50 years ago nobody would have said they'd do," said Mike Wireman, a hydrogeologist with the EPA who also works with the World Bank on global water supply issues.

Wireman points to new research in Europe finding water reservoirs several miles beneath the surface — far deeper than even the aquifer beneath Mexico City — and says U.S. policy has been slow to adapt to this new understanding.

"Depth in and of itself does not guarantee anything — it does not guarantee you won't use it in the future, and it does not guarantee that that it is not" a source of drinking water, he said.

If Mexico City's search for water seems extreme, it is not unusual. In aquifers Denver relies on, drinking water levels have dropped more than 300 feet. Texas rationed some water use last summer in the midst of a record-breaking drought. And Nevada — realizing that the water levels in one of the nation's largest reservoirs may soon drop below the intake pipes — is building a drain hole to sap every last drop from the bottom.

"Water is limited, so they are really hustling to find other types of water," said Mark Williams, a hydrologist at the University of Colorado at Boulder. "It's kind of a grim future, there's no two ways about it."

In a parched world, Mexico City is sending a message: Deep, unknown potential sources of drinking water matter, and the U.S. pollutes them at its peril.

Weekly jobless claims dropped to a five-year low last week, surprising analysts. During the week ending January 19, applications for unemployment insurance payments decreased by 5,000 to 330,000, the lowest number since the same week in 2008. But this change matches similar patterns in previous calendar years, due to the challenges of adjusting data during the holiday period and at the start of quarters. One expert indicated that the numbers would rise again at the end of the month, saying, "The swings are attributable to the calendar. We're going to pay for this."

Bloomberg News:

A pickup in consumer spending last month may be helping employers look beyond the rancor in Washington over attempts to cut federal spending and trim the national debt. Nonetheless, an increase in the payroll tax at the start of the year has shaken household confidence, raising the risk that sales may cool.

“Away from the calendar swings, the numbers are getting better,” Jones said. “There’s an improvement in the labor market that is in fact going on."

[Image via Flickr]

By Abrahm Lustgarten, ProPublica

When the Obama administration temporarily banned BP from federal contracts Wednesday, it pointed to BP's "lack of business integrity" and conduct relating to the 2010 Deepwater Horizon explosion and spill.

The sanction, however, has been years in the making.

BP has been criminally convicted in four previous cases — including a 2005 explosion in Texas that killed 15 workers — and the EPA has been considering broader debarment proceedings against the company since at least 2005. The agency had actually been nearing a decision on a contract ban in January 2010, just a few months before the Deepwater Horizon tragedy unfolded, killing 11 workers and sending more than 200 million gallons of oil into the sea.

"This is not just about the Deepwater Horizon, but about a whole lot of things and a whole lot of parts of BP," said a former government official familiar with the debarment process. "It wasn't just narrowly scoped... they are looking at it as a systemic corporate-wide issue."

A limited suspension of government contracts for a specific facility or subsidiary operations, called suspension and debarment, is standard practice after a criminal conviction.

BP pleaded guilty on Nov. 15 to federal criminal charges of manslaughter and lying to Congress and agreed to pay more than $4 billion in fines relating to the Deepwater Horizon accident, which killed 11 workers and sent more than 200 million gallons of oil into the Gulf of Mexico. Three of the company's managers have also been criminally charged.

But the broad sanctions announced Wednesday target the BP corporation writ large — the British-based parent company and 21 international subsidiaries are included — and reflect a mistrust for BP's operations that has been growing over more than a decade.

In this case, experts close to the case say, the timing of the government's announcement was significant.

It came just hours before the government sold new rights to drill in the Gulf of the Mexico and seems intended to prevent BP, the largest leaseholder in the Gulf, from expanding its operations there until all of its problems are resolved.

"Suspensions are always timed to prevent something from happening," said Jeanne Pascal, a former EPA debarment attorney who led the government's investigation into BP from 1997 until she retired in 2010.

"A debarment says you have chronic bad behavior, and we think you present chronic risk for the government and that you will continue this behavior," said Pascal. "The immediate need was the issuance of new leases (Wednesday) in the Gulf of Mexico."

Wednesday's actions represent the government's effort to protect its fiscal resources and protect the public economic interest by not using taxpayer money to support actions that could cost the government more money later on.

After several past BP accidents, including two oil spills in Alaska and close calls at several U.S. refineries, private consultants and government investigators have pointed to wide-ranging problems within the company's culture. The critics have warned that BP has consistently prioritized speed and profit-making over safety and regulatory compliance.

The type of suspension ordered Wednesday is a part of what the government calls a "discretionary" debarment, which means it is considering this broader "corporate culture of noncompliance" and longer history.

While the EPA is the lead agency, its debarment decision affects the Department of Interior and Department of Defense, among other agencies. BP is among the U.S.'s largest corporate contractors and supplies more than $1 billion a year worth of fuel to the military.

The temporary suspension order issued Wednesday is the first step in a still-to-be-made decision about whether BP should be formally debarred, or banned entirely from contracts for a specified length of time.

For now, EPA officials tell ProPublica that the suspension could last anywhere from two to 18 months, depending on the final terms of the Department of Justice's plea agreement with BP. If the civil suits against BP remain unresolved, the suspension could stay in place longer.

As part of its criminal plea announced earlier this month, BP agreed to hire ethics and safety monitors for its Gulf operations and regularly evaluate its facilities for safety and environmental compliance. If the court approves the plea agreement, those terms would become a part of BP's probation, and thus a term of the suspension and debarment proceedings, an EPA spokesperson told ProPublica.

A spokesperson assigned to speak on behalf of BP told ProPublica that the company had not intended to bid on new Gulf leases in Wednesday's sale, and was not aware of the EPA's suspension decision until after their bids were due. But a Nov. 15 press release and filings with the SEC both suggest the company knew a ban could be coming.

BP was not explicitly banned from participating in the sale of new rights to drill in western Gulf of Mexico waters Wednesday, but would not have been allowed to win any leases if it had competed for them, a Department of Interior official said.

Since the 2010 spill in the Gulf, the government has granted BP more than 50 new leases in the Gulf of Mexico. BP is the single largest investor and leaseholder in the Gulf, where it currently operates seven drilling rigs.

"BP has invested more than $52 billion in the United States," the company said in a statement, "more than any other oil and gas company and more than it invests in any other country." It emphasized that it employs 23,000 people in the U.S. and said it supports nearly a quarter of a million American jobs.

So far, BP has spent more than $14 billion on cleanup and settlement costs related to the Gulf spill, and expects to pay more than $37 billion — including in criminal and civil settlements — by the time it is finished. In addition, the company has stated a renewed focus on safety and reorganized its corporate operations to increase safety and environmental accountability.

"I believe BP is genuine and sincere" in its efforts, said Tommy Beaudreau, director of the Bureau of Ocean Energy Management, in a press conference held Wednesday after the government's lease sale.

BP also emphasized that it is working speedily towards a resolution with the government.

"BP has been in regular dialogue with the EPA and has already provided both a present responsibility statement of more than 100 pages and supplemental answers to the EPA's questions," it said in a statement. "The EPA has informed BP that it is preparing a proposed administrative agreement that, if agreed upon, would effectively resolve and lift this temporary suspension."

Suevon Lee contributed reporting to this story.

Questions on the latest BP news? Join our live chat November 29 at 1 p.m. ET, with reporter Abrahm Lustgarten. 

Susie passed this article from The Atlantic on to me that highlights many of the documented instances of police misconduct cited in the 8 month study and investigation undertaken by law clinics at NYU, Fordham, Harvard, and Stanford, "Suppressing Protest: Human Rights Violations in the U.S. Response to Occupy Wall Street." I wrote my own summary of the report here, but only highlighted two of the documented cases of misconduct involving police treatment of occupy protesters.

These are all worthy of noting, and I received the above Youtube video this morning from a reader that seems like a perfect accompaniment:

A café employee at work near Union Square heard a passing Occupy march, went outside, and decided to begin filming after seeing police using what he felt was excessive force on protesters. Video evidence shows a white-shirted police officer pushing the café employee, camera in hand. It appears that the employee then began speaking to the officer while holding both hands in the air as the officer approached him. In an interview, the employee stated that he asked the officer why he was pushing and told the officer, "I'm just taking pictures." Video then shows the officer grabbing the employee by the wrist, and flipping him hard to the ground face-first, in what was described as a "judo-flip." The employee stated that he was subsequently charged with "blocking traffic" and "obstructing justice."

Video shows that an officer drove a scooter at a crowd of people, including journalists and legal observers. The video then shows a legal observer lying on the ground screaming, his foot under the scooter. A second video shows the observer on the ground with his foot under the scooter. A third video shows that the observer kicked the scooter off or away from his leg, at which point officers dragged the observer several feet and began to cuff him. While he was being cuffed, an officer pushed the observer's face into the pavement by pressing his baton across the back of the observer's neck.

A member of the Research Team observed an officer push and then throw a male protester into the air for no apparent reason as he walked, with many other protesters, near parked police scooters. The protester fell hard to the ground and was not arrested.

A journalist stated that when he asked a non-uniformed officer for his name at a march, the officer pushed the journalist against a wall and held him there, threatening him that if he kept asking questions, he would get "his f-cking ass beat." The journalist recorded interviews with two bystanders immediately after the incident. One bystander stated that he witnessed the officer using abusive language toward the journalist. He then told the journalist that the officer "put his chest in your face and pushed you around." The other bystander told the journalist that the officer "[got] up in your face and [shouted] at you. He pressed you against the wall of the supermarket."

More at The Atlantic, or click on the link above to read the report directly.

It's more than 20 years since a recording of police violence sparked riots in Los Angeles. The beating of Rodney King was caught on video and the footage shocked the world.

But two decades later how much has changed?

To discuss this, Inside Story Americas, with presenter Shihab Rattansi, is joined by guests: Jumana Musa, a human rights lawyer who is deputy director of the Rights Working Group; Gustavo Arellano, the editor of the OC Weekly, a newspaper that has been covering the shootings; and Raymond Lewis, a retired Philadelphia police captain who was arrested by New York police while taking part in the Occupy Wall Street protests last year.

On Saturday, police in the Californian city of Anaheim shot and killed Manuel Diaz, an unarmed man who they said was running from them, hitting him in the leg and the back of the head.

Police said he and another young man shot dead the following day were both gang members. But local residents say the Latino men were victims of racial profiling and an overly aggressive police force.

Continue reading »

David Cay Johnston at Reuters reports:

IRS data suggests that, globally, U.S. nonfinancial companies hold at least three times more cash and other liquid assets than the Federal Reserve reports, idle money that could be creating jobs, funding dividends or even paying a stiff federal penalty tax for hoarding corporate cash.

The Fed's latest Flow of Funds report showed that U.S. nonfinancial companies held $1.7 trillion in liquid assets at the end of March. But newly released IRS figures show that in 2009 these companies held $4.8 trillion in liquid assets, which equals $5.1 trillion in today's dollars, triple the Fed figure.
...
This cash pool came to $16,700 for every man, woman and child in the United States, a 53 percent real increase from 2004, my calculations from IRS data show.

You don't have to sit idle and frustrated pondering how many jobs these companies could be creating if they weren't just hoarding all this cash. As Johnston explains here:

Want to motivate companies to put some of those trillions of dollars of idle cash to work creating jobs, paying dividends or sharing the burden of taxes? Call 1-202-224-3121 and tell your senator or representative you want Section 531 vigorously enforced - now - and the offshore loophole closed immediately.

Action meant to raise awareness of out-of-control student debt and prompt nationwide protest

NEW YORK - Relentless tuition hikes, even at public institutions, have contributed to an astonishing student debt burden of more than $1 trillion. Inspired by student movements over the last month in Canada, Mexico, Chile, and across the world, education activists in cities around the U.S. have been organizing rallies and marches to raise awareness about the education crisis in this country. All in the Red, a New York-based activist collective, is declaring this Friday, June 22 to be the “Night of the Living Debt.” At 7 p.m. in Washington Square Park, performance artists/activists Rev. Billy and the Church of Stop Shopping will exorcise the demons of student debt, after which costumed zombies will march with pots and pans in hand through the streets of Manhattan, kicking off a summer of nationwide actions.

All in the Red emerged as a series of marches expressing our solidarity with the hundreds of thousands of students striking in Quebec against tuition hikes. Lack of affordable education and suffocating debt are even more glaring in the United States, and similar displays of protest and outrage are becoming increasingly common. All in the Red calls for a nationwide network to spread awareness and organize around the issue of student debt through direct action, political theatre, and spreading the visual imagery of the red square, which has come to symbolize this struggle worldwide.

Along with our colleagues in Occupy Wall Street, student activist organizations, and other public interest groups, we are concerned in particular with the pernicious relationship between education and debt. The predicament is compounded, both by seeming disregard from the government for the welfare of student debtors, despite overwhelming public support for student debt relief -- a petition to forgive student loans recently reached one million signatures -- and also by the predatory practices of financial services firms. We can no longer allow the shackles of debt bondage to be a source of shame. The student debt crisis must be placed at the center of our conversation about the public good.

On the “Night of the Living Debt,” Friday evening, June 22, we will rise from the grave of debt and join the struggle to end the ties that bind our education to a decadent financial system. We will call for a nationwide conversation about how we can transcend an obsolete system that enriches a few by mortgaging the futures of the many.

For additional information, contact allinthered@gmail.com

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Peter Adamson with the Office of Research at the United Nations Children’s Fund (UNICEF), discusses the international data contained in Report Card 10, a first-ever analysis of new data from the European Union's Statistics on Income and Living Conditions household surveys reveals the extent of child poverty and child deprivation in the world’s advanced economies.

As debates on austerity and social spending cuts rage, some 13 million children in the EU, plus Norway and Iceland, are found to be "deprived", lacking basic items necessary for their development.

Meanwhile, 30 million children live in relative poverty in 35 countries with developed economies. Of the 35 wealthy countries studied by UNICEF, only Romania has a child poverty rate higher than the 23 percent rate in the U.S.:

Particularly striking in Report Card 10 are the comparisons between countries with similar
economies, demonstrating that government policy can have a significant impact on the lives of children. For example, Denmark and Sweden have much lower rates of child deprivation than Belgium or Germany, yet all four countries have roughly similar levels of economic development and per capita income.

“The report makes clear that some governments are doing much better at tackling child deprivation than others,” said Mr. Alexander. “The best performers show it is possible to address poverty within the current fiscal space. On the flip side, failure to protect children from today’s economic crisis is one of the most costly mistakes a society can make.”

In a report last August, the child poverty rate was at 20 percent in the United States, and this is an important passage to note on those findings:

"People who grew up in a financially secure situation find it easier to succeed in life, they are more likely to graduate from high school, more likely to graduate from college, and these are things that will lead to greater success in life,” Stephen Brown, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas, told the AP. “What we are looking at is a cohort of kids who as they become adults may be less able to contribute to the growth of the economy. It could go on for multiple generations.”

These reports should haunt every man and woman who enters a voting booth in November. "Second in child poverty only to Romania."