Sex Pistols - The Filth And The Fury

Punk: The Early Years Amy Winehouse - The Girl Done Good Documentary

BEST NEWS BLOOPERS

Patti Stanger - Finally, someone gets it!!!

This summary is not available. Please click here to view the post.

Banking on Heaven

Mark Boyce - Hey Little Girl 

ECHELON: America's Secret Global Surveillance Network

Introduction

The culmination of the Cold War conflict brought home hard realities for many military and intelligence agencies who were dependent upon the confrontation for massive budgets and little civilian oversight. World War II Allied political and military alliances had quickly become intelligence alliances in the shadow of the Iron Curtain that descended upon Eastern Europe after the war.

But for some intelligence agencies the end of the Cold War just meant a shift in mission and focus, not a loss of manpower or financial resources. One such US governmental organization is the National Security Agency (NSA). Despite the disintegration of Communism in the former Soviet Union and throughout Eastern Europe, the secretive NSA continues to grow at an exponential rate in terms of budget, manpower and spying abilities. Other countries have noticed the rapid growth of NSA resources and facilities around the world, and have decried the extensive spying upon their citizens by the US.

A preliminary report released by the European Parliament in January 1998 detailed research conducted by independent researchers that uncovered a massive US spy technology network that routinely monitors telephone, fax and email information on citizens all over the world, but particularly in the European Union (EU) and Japan. Titled “An Appraisal of Technologies of Political Control,”<1>  this report, issued by the Scientific and Technological Options Assessment (STOA) committee of the European Parliament, caused a tremendous stir in the establishment press in Europe. At least one major US media outlet, The New York Times,<2>  covered the issuance of the report as well.

The STOA report also exposed a festering sore spot between the US and our EU allies. The widespread surveillance of citizens in EU countries by the NSA has been known and discussed by European journalists since 1981. The name of the system in question is ECHELON, and it is one of the most secretive spy systems in existence.

ECHELON is actually a vast network of electronic spy stations located around the world and maintained by five countries: the US, England, Canada, Australia, and New Zealand. These countries, bound together in a still-secret agreement called UKUSA, spy on each other’s citizens by intercepting and gathering electronic signals of almost every telephone call, fax transmission and email message transmitted around the world daily. These signals are fed through the massive supercomputers of the NSA to look for certain keywords called the ECHELON “dictionaries.”

Most of the details of this mammoth spy system and the UKUSA agreement that supports it remain a mystery. What is known of ECHELON is the result of the efforts of journalists and researchers around the world who have labored for decades to uncover the operations of our government’s most secret systems. The 1996 publication of New Zealand journalist Nicky Hager’s book, Secret Power: New Zealand’s Role in the International Spy Network,<3>  provided the most detailed look at the system and  inflamed interest in ECHELON as well as the debate regarding its propriety.

This paper examines the expanse of the ECHELON system along with the intelligence agreements and exchanges that support it. The operation of ECHELON serves the NSA’s goal of spying on the citizens of other countries while also allowing them to circumvent the prohibition on spying on US citizens. ECHELON is not only a gross violation of our Constitution, but it violates the good will of our European allies and threatens the privacy of innocent civilians around the world. The existence and expansion of ECHELON is a foreboding omen regarding the future of our Constitutional liberties. If a government agency can willingly violate the most basic components of the Bill of Rights without so much as Congressional oversight and approval, we have reverted from a republican form of government to tyranny.

The Parties

The success of the Allied military effort in World War II was due in no small part to successes in gathering enemy intelligence information and cracking those military and diplomatic messages. In addition, the Allied forces were able to create codes and encryption devices that effectively concealed sensitive information from prying Axis Power eyes. These coordinated signal intelligence (SIGINT) programs kept Allied information secure and left the enemies vulnerable.

But at the close of the conflict, a new threatening power – the Soviet Union – was beginning to provoke the Cold War by enslaving Eastern Europe. These signal intelligence agencies now had a new enemy toward which to turn their electronic eyes and ears to ensure that the balance of power could be maintained. The volleys of electronic hardware and espionage that would follow for forty years would be the breeding ground of the ECHELON spy system.

The diplomatic foundation that was the genesis of ECHELON is the UKUSA agreement. The agreement has its roots in the BRUSA COMINT (communications intelligence) alliance formed in the early days of World War II and ratified on May 17, 1943 by the United Kingdom and the United States.<4>  The Commonwealth SIGINT Organization formed in 1946-47 brought together the UK, Canada, Australia and New Zealand post-war intelligence agencies.<5>  Forged in 1947 between the US and UK, the still-secret UKUSA agreement defined the relations between the SIGINT departments of those various governments. Direct agreements between the US and these agencies also define the intricate relationship that these organizations engage in.

Foremost among those agencies is the US National Security Agency (NSA), which represents the American interest. The NSA is designated as the “First Party to the Treaty.” The Government Communications Headquarters (GCHQ) signed the UKUSA agreement on behalf of the UK and its Commonwealth SIGINT partners. This brought Australia’s Defense Signals Directorate (DSD), the Canadian Communications Security Establishment (CSE) and New Zealand’s Government Communications Security Bureau (GCSB) into the arrangement. While these agencies are bound by additional direct agreements with the US and each other, these four countries are considered the “Second Parties to the (UKUSA) Treaty.” Third Party members include Germany, Japan, Norway, South Korea and Turkey. There are sources that indicate China may be included in this group on a limited basis as well.<6>

National Security Agency (US)

The prime mover in the UKUSA arrangement is undeniably the National Security Agency (NSA). The majority of funds for joint projects and facilities (discussed below) as well as the direction for intelligence gathering operations are issued primarily through the NSA. The participating agencies frequently exchange personnel, divide up intelligence collection tasks and establish common guidelines for classifying and protecting shared information. However, the NSA utilizes its role as the largest spy agency in the world to have its international intelligence partners do its bidding.

President Harry Truman established the NSA in 1952 with a presidential directive that remains classified to this day. The US government did not acknowledge the existence of the NSA until 1957. Its original mission was to conduct the signal intelligence (SIGINT) and communications security (COMSEC) for the US. President Ronald Reagan added the tasks of information systems security and operations security training in 1984 and 1988 respectively. A 1986 law charged the NSA with supporting combat operations for the Department of Defense.<7>

Headquartered at Fort George Meade, located between Washington D.C. and Baltimore, Maryland, the NSA boasts the most enviable array of intelligence equipment and personnel in the world. The NSA is the largest global employer of mathematicians, featuring the best teams of codemakers and codebreakers ever assembled. The latter's job is to crack the encryption codes of foreign and domestic electronic communications, forwarding the revealed messages to their enormous team of skilled linguists to review and analyze the messages in over 100 languages. The NSA is also responsible for creating the encryption codes that protect the US government’s communications.

In its role as gang leader for UKUSA, the NSA is primarily involved with creating new surveillance and codebreaking technology, directing the other cooperating agencies to their targets, and providing them with training and tools to intercept, process and analyze enormous amounts of signals intelligence. By possessing what is arguably the most technologically advanced communications, computer and codebreaking equipment of any government agency in the world, the NSA serves as a competent and capable taskmaster for UKUSA.

The ECHELON Network

The vast network created by the UKUSA community stretches across the globe and into the reaches of space. Land-based intercept stations, intelligence ships sailing the seven seas and top-secret satellites whirling twenty thousand miles overhead all combine to empower the NSA and its UKUSA allies with access to the entire global communications network. Very few signals escape its electronic grasp.

Having divided the world up among the UKUSA parties, each agency directs its electronic "vacuum-cleaner" equipment towards the heavens and the ground to search for the most minute communications signals that traverse the system’s immense path. The NSA facilities in the US cover the communications signals of both American continents; the GCHQ in Britain is responsible for Europe, Africa and Russia west of the Ural Mountains; the DSD in Australia assists in SIGINT collection in Southeastern Asia and the Southwest Pacific and Eastern Indian Ocean areas; the GSCB in New Zealand is responsible for Southern Pacific Ocean collections, particularly the South Pacific island nations group; and CSE in Canada handles interception of additional northern Russian, northern European and American communications.<8>

The Facilities

The backbone of the ECHELON network is the massive listening and reception stations directed at the Intelsat and Inmarsat satellites that are responsible for the vast majority of phone and fax communications traffic within and between countries and continents. The twenty Intelsat satellites follow a geo-stationary orbit locked onto a particular point on the Equator.<9>  These satellites carry primarily civilian traffic, but they do additionally carry diplomatic and governmental communications that are of particular interest to the UKUSA parties.

Originally, only two stations were responsible for Intelsat intercepts: Morwenstow in England and Yakima in the state of Washington. However, when the Intelsat 5 series was replaced with the Intelsat 701 and 703 satellites, which had much more precise transmission beams that prohibited reception of Southern Hemisphere signals from the Yakima base in the Northern Hemisphere, additional facilities were constructed in Australia and New Zealand.<10>

Today, the Morwenstow station directs its ears towards the Intelsats traversing the atmosphere above the Atlantic and Indian Oceans and transmiting to Europe, Africa and western parts of Asia. The Yakima station, located on the grounds of the Yakima Firing Station, targets Pacific Ocean communications in the Northern Hemisphere as well as the Far East. Another NSA facility at Sugar Grove, West Virginia, covers traffic for the whole of North and South America. A DSD station at Geraldton, Australia, and the Waihopai, New Zealand GCSB facility cover Asia, the South Pacific countries and the Pacific Ocean.  An additional station on Ascension Island in the Atlantic Ocean between Brazil and Angola is suspected of covering the Atlantic Intelsat’s Southern Hemisphere communications.<11>

Non-Intelsat satellites are monitored from these same stations, as well as from bases in Menwith Hill, England; Shoal Bay, Australia; Leitrim, Canada; Bad Aibling, Germany, and Misawa, Japan. These satellites typically carry Russian and regional communications.<12>  It is known that the Shoal Bay facility targets a series of Indonesian satellites and that the Leitrim station intercepts communications from Latin American satellites, including the Mexican telephone company's Morelos satellite.<13>

Several dozen other radio listening posts operated by the UKUSA allies dot the globe as well, located at military bases on foreign soil and remote spy posts. These stations played a critical role in the time prior to the development of satellite communications because much of the world’s communications traffic was transmitted on radio frequency bands. Particularly in the high-frequency (HF) range, radio communications continue to serve an important purpose despite the widespread use of satellite technology because their signals can be transmitted to military ships and aircraft across the globe. Shorter range very high-frequencies (VHF) and ultra high-frequencies (UHF) are also used for tactical military communications within national borders. Major radio facilities in the UKUSA network include Tangimoana, New Zealand; Bamaga, Australia, and the joint NSA/GCHQ facility at the Indian Ocean atoll of Diego Garcia.<14>

A separate high frequency direction finding (HFDF) network intercepts communications signals for the unique purpose of locating the position of ships and aircraft. While these stations are not actually involved in the analysis of messages, they play a critical role in monitoring the movements of mobile military targets. The Canadian CSE figures prominently in the HFDF UKUSA network, codenamed CLASSIC BULLSEYE and hosting a major portion of the Atlantic and Pacific stations that monitored Soviet ship and submarine movements during the Cold War. Stations from Kingston and Leitrim (Ontario) to Gander (Newfoundland) on the Atlantic side, to Alert (Northwest Territories) located at the northernmost tip of Canada on the Arctic Ocean that listens to the Russian submarine bases at Petropavlovsk and Vladivostok, and finally to Masset (British Columbia) in the Pacific -- monitor shipping and flight lanes under the direction of the NSA.<15>.  The CSE also maintains a small contingent at Lackland Air Force Base in San Antonio, Texas, which probably monitors Latin American communications targets.

Another major support for the ECHELON system is the US spy satellite network and its corresponding reception bases scattered about the UKUSA empire. These space-based electronic communications "vacuum cleaners" pick up radio, microwave and cell phone traffic on the ground. They were launched by the NSA in cooperation with its sister spy agencies, the National Reconnaissance Office (NRO) and the Central Intelligence Agency (CIA). The Ferret series of satellites in the 1960s; the Canyon, Rhyolite and Aquacade satellites in the 1970s; and the Chalet, Vortex, Magnum, Orion, and Jumpseat series of satellites in the 1980s, have given way to the new and improved Mercury, Mentor and Trumpet satellites during the 1990s.
The Menwith Hill facility is located in North Yorkshire near Harrogate, England. The important role that Menwith Hill plays in the ECHELON system was recognized by the recent European Parliament STOA report:

Within Europe, all email, telephone and fax communications are routinely intercepted by the United States National Security Agency, transferring all target information from the European mainland via the strategic hub of London then by satellite to Fort Meade in Maryland via the crucial hub at Menwith Hill in the North York Moors of the UK.<17>
The existence and importance of the facility was first brought to light by British journalist and researcher Duncan Campbell in 1980.<18>  Today, it is the largest spy station in the world, with over twenty-five satellite receiving stations and 1,400 American NSA personnel working with 350 UK Ministry of Defense staff on site. After revelations that the facility was coordinating surveillance for the vast majority of the European continent, the base has become a target for regular protests organized by local peace activists. It has also become the target of intense criticism by European government officials who are concerned about the vast network of civilian surveillance and economic espionage conducted from the station by the US.<19>
The beginnings of Menwith Hill go back to December 1951, when the US Air Force and British War Office signed a lease for land that had been purchased by the British government. The NSA took over the lease of the base in 1966, and they have continued to build up the facility ever since. Up until the mid-1970s, Menwith Hill was used for intercepting International Leased Carrier (ILC) and Non-Diplomatic Communications (NDC). Having received one of the first sophisticated IBM computers in the early 1960s, Menwith Hill was also used to sort through the voluminous unenciphered telex communications, which consisted of international messages, telegrams and telephone calls from the government, business and civilian sectors looking for anything of political, military or economic value.<20>

The addition of the first satellite intercept station at Menwith Hill in 1974 raised the base’s prominence in intelligence gathering. Eight large satellite communications dishes were installed during that phase of construction. Several satellite-gathering systems now dot the facility:<21>

STEEPLEBUSH – Completed in 1984, this $160 million system expanded the satellite surveillance capability and mission of the spy station beyond the bounds of the installation that began in 1974.

RUNWAY – Running east and west across the facility, this system receives signals from the second-generation geosynchronous Vortex satellites, and gathers miscellaneous communications traffic from Europe, Asia and the former Soviet Union. The information is then forwarded to the Menwith Hill computer systems for processing. RUNWAY may have recently been replaced or complemented by another system, RUTLEY.

PUSHER – An HFDF system that covers the HF frequency range between 3 MHz and 30 MHz (radio transmissions from CB radios, walkie-talkies, and other radio devices). Military, embassy, maritime and air flight communications are the main target of PUSHER.

MOONPENNY – Uncovered by British journalist Duncan Campbell in the 1980s, this system is targeted at the communication relay satellites belonging to other countries, as well as the Atlantic and Indian Ocean Intelsat satellites.

KNOBSTICKS I and II – The purpose of these antennae arrays are unknown, but they probably target military and diplomatic traffic throughout Europe.

GT-6 – A new system installed at the end of 1996, GT-6 is believed to be the receiver for the third generation of geosynchronous satellites termed Advanced Orion or Advanced Vortex. A new polar orbit satellite called Advanced Jumpseat may be monitored from here as well.

STEEPLEBUSH II – An expansion of the 1984 STEEPLEBUSH system, this computer system processes information collected from the RUNWAY receivers gathering traffic from the Vortex satellites.

SILKWORTH – Constructed by Lockheed Corporation, the main computer system for Menwith Hill processes most of the information received by the various reception systems.

One shocking revelation about Menwith Hill came to light in 1997 during the trial of two women peace campaigners appealing their convictions for trespassing at the facility. In documents and testimony submitted by British Telecomm in the case, R.G. Morris, head of Emergency Planning for British Telecomm, revealed that at least three major domestic fiber-optic telephone trunk lines – each capable of carrying 100,000 calls simultaneously – were wired through Menwith Hill.<22>  This allows the NSA to tap into the very heart of the British Telecomm network.  Judge Jonathan Crabtree rebuked British Telecomm for his revelations and prohibited Mr. Morris from giving any further testimony in the case for “national security” reasons. According to Duncan Campbell, the secret spying alliance between Menwith Hill and British Telecomm began in 1975 with a coaxial connection to the British Telecomm microwave facility at Hunter’s Stone, four miles away from Menwith Hill – a connection maintained even today.<23>

Additional systems (TROUTMAN, ULTRAPURE, TOTALISER, SILVERWEED, RUCKUS, et. al.) complete the monumental SIGINT collection efforts at Menwith Hill. Directing its electronic vacuum cleaners towards unsuspecting communications satellites in the skies, receiving signals gathered by satellites that scoop up the most minute signals on the ground, listening in on the radio communications throughout the air, or plugging into the ground-based telecommunications network, Menwith Hill, alongside its sister stations at Pine Gap, Australia, and Bad Aibling, Germany, represents the comprehensive effort of the NSA and its UKUSA allies to make sure that no communications signal escapes its electronic net.

The ECHELON Dictionaries

The extraordinary ability of ECHELON to intercept most of the communications traffic in the world is breathtaking in its scope. And yet the power of ECHELON resides in its ability to decrypt, filter, examine and codify these messages into selective categories for further analysis by intelligence agents from the various UKUSA agencies. As the electronic signals are brought into the station, they are fed through the massive computer systems, such as Menwith Hill’s SILKWORTH, where voice recognition, optical character recognition (OCR) and data information engines get to work on the messages.

These programs and computers transcend state-of-the-art; in many cases, they are well into the future. MAGISTRAND is part of the Menwith Hill SILKWORTH super-computer system that drives the powerful keyword search programs.<24>  One tool used to sort through the text of messages, PATHFINDER (manufactured by the UK company, Memex),<25>  sifts through large databases of text-based documents and messages looking for keywords and phrases based on complex algorithmic criteria. Voice recognition programs convert conversations into text messages for further analysis. One highly advanced system, VOICECAST, can target an individual’s voice pattern, so that every call that person makes is transcribed for future analysis.

Processing millions of messages every hour, the ECHELON systems churn away 24 hours a day, 7 days a week, looking for targeted keyword series, phone and fax numbers, and specified voiceprints. It is important to note that very few messages and phone calls are actually transcribed and recorded by the system. The vast majority are filtered out after they are read or listened to by the system. Only those messages that produce keyword “hits” are tagged for future analysis. Again, it is not just the ability to collect the electronic signals that gives ECHELON its power; it is the tools and technology that are able to whittle down the messages to only those that are important to the intelligence agencies.

Each station maintains a list of keywords (the “Dictionary”) designated by each of the participating intelligence agencies. A Dictionary Manager from each of the respective agencies is responsible for adding, deleting or changing the keyword search criteria for their dictionaries at each of the stations.<26>  Each of these station dictionaries are given codewords, such as COWBOY for the Yakima facility and FLINTLOCK for the Waihopai facility.<27>   These codewords play a crucial identification role for the analysts who eventually look at the intercepted messages.

Each message flagged by the ECHELON dictionaries as meeting the specified criteria is sorted by a four-digit code representing the source or subject of the message (such as 5535 for Japanese diplomatic traffic, or 8182 for communications about distribution of encryption technology,)<28>  as well as the date, time and station codeword. Also included in the message headers are the codenames for the intended agency: ALPHA-ALPHA (GCHQ), ECHO-ECHO (DSD), INDIA-INDIA (GCSB), UNIFORM-UNIFORM (CSE), and OSCAR-OSCAR (NSA). These messages are then transmitted to each agency’s headquarters via a global computer system, PLATFORM,<29>  that acts as the information nervous system for the UKUSA stations and agencies.

Every day, analysts located at the various intelligence agencies review the previous day’s product. As it is analyzed, decrypted and translated, it can be compiled into the different types of analysis: reports, which are direct and complete translations of intercepted messages; “gists,” which give basic information on a series of messages within a given category; and summaries, which are compilations from both reports and gists.<30>  These are then given classifications: MORAY (secret), SPOKE (more secret than MORAY), UMBRA (top secret), GAMMA (Russian intercepts) and DRUID (intelligence forwarded to non-UKUSA parties). This analysis product is the raison d’être of the entire ECHELON system. It is also the lifeblood of the UKUSA alliance.

The Problem

The ECHELON system is the product of the Cold War conflict, an extended battle replete with heightened tensions that teetered on the brink of annihilation and the diminished hostilities of détente and glasnost.  Vicious cycles of mistrust and paranoia between the United States and the Soviet Empire fed the intelligence agencies to the point that, with the fall of communism throughout Eastern Europe, the intelligence establishment began to grasp for a mission that justified its bloated existence.

But the rise of post-modern warfare – terrorism – gave the establishment all the justification it needed to develop even greater ability to spy on our enemies, our allies and our own citizens. ECHELON is the result of those efforts.  The satellites that fly thousands of miles overhead and yet can spy out the most minute details on the ground; the secret submarines that troll the ocean floors that are able to tap into undersea communications cables;<31> and all power the efficient UKUSA signals intelligence machine.

There is a concerted effort by the heads of intelligence agencies, federal law enforcement officials and congressional representatives to defend the capabilities of ECHELON. Their persuasive arguments point to the tragedies seen in the bombings in Oklahoma City and the World Trade Center in New York City. The vulnerability of Americans abroad, as recently seen in the bombing of the American embassies in Dar es Salaam, Tanzania, and Nairobi, Kenya, emphasizes the necessity of monitoring those forces around the world that would use senseless violence and terror as political weapons against the US and its allies.

Intelligence victories add credibility to the arguments that defend such a pervasive surveillance system. The discovery of missile sites in Cuba in 1962, the capture of the Achille Lauro terrorists in 1995, the discovery of Libyan involvement in the bombing of a Berlin discotheque that killed one American (resulting in the 1996 bombing of Tripoli) and countless other incidents that have been averted (which are now covered by the silence of indoctrination vows and top-secret classifications) all point to the need for comprehensive signals intelligence gathering for the national security of the United States.

But despite the real threats and dangers to the peace and protection of American citizens at home and abroad, our Constitution is quite explicit in limiting the scope and powers of government. A fundamental foundation of free societies is that when controversies arise over the assumption of power by the state, power never defaults to the government, nor are powers granted without an extraordinary, explicit and compelling public interest. As the late Supreme Court Justice William Brennan pointed out:

The concept of military necessity is seductively broad, and has a dangerous plasticity. Because they invariably have the visage of overriding importance, there is always a temptation to invoke security “necessities” to justify an encroachment upon civil liberties. For that reason, the military-security argument must be approached with a healthy skepticism: Its very gravity counsels that courts be cautious when military necessity is invoked by the Government to justify a trespass on [Constitutional] rights.<32>
Despite the necessity of confronting terrorism and the many benefits that are provided by the massive surveillance efforts embodied by ECHELON, there is a dark and dangerous side of these activities that is concealed by the cloak of secrecy surrounding the intelligence operations of the United States.
The discovery of domestic surveillance targetting American civilians for reasons of “unpopular” political affiliation – or for no probable cause at all – in violation of the First, Fourth and Fifth Amendments of the Constitution is regularly impeded by very elaborate and complex legal arguments and privilege claims by the intelligence agencies and the US government. The guardians and caretakers of our liberties – our duly elected political representatives – give scarce attention to the activities, let alone the abuses, that occur under their watch. As pointed out below, our elected officials frequently become targets of ECHELON themselves, chilling any effort to check this unbridled power.

In addition, the shift in priorities resulting from the demise of the Soviet Empire and the necessity to justify intelligence capabilities resulted in a redefinition of “national security interests” to include espionage committed on behalf of powerful American companies. This quiet collusion between political and private interests typically involves the very same companies that are involved in developing the technology that empowers ECHELON and the intelligence agencies.

Domestic and Political Spying

When considering the use of ECHELON on American soil, the pathetic historical record of NSA and CIA domestic activities in regards to the Constitutional liberties and privacy rights of American citizens provides an excellent guidepost for what may occur now with the ECHELON system. Since the creation of the NSA by President Truman, its spying capability has frequently been used to monitor the activities of an unsuspecting public.

Project SHAMROCK

In 1945 Project SHAMROCK was initiated to obtain copies of all telegraphic information exiting or entering the United States. With the full cooperation of RCA, ITT and Western Union (representing almost all of the telegraphic traffic in the US at the time), the NSA's predecessor and later the NSA itself wereprovided with daily microfilm copies of all incoming, outgoing and transiting telegraphs. This system changed dramatically when the cable companies began providing magnetic computer tapes to the agency that enabled the agency to run all the messages through its HARVEST computer to look for particular keywords, locations, senders or addressees.

Project SHAMROCK became so successful that the in 1966 NSA and CIA set up a front company in lower Manhattan (where the offices of the telegraph companies were located) under the codename LPMEDLEY. At the height of Project SHAMROCK, 150,000 messages a month were printed and analyzed by NSA agents.<33>

NSA Director Lew Allen brought Project SHAMROCK to a crashing halt in May 1975 as congressional critics began to rip open the program’s shroud of secrecy. The testimony of both the representatives from the cable companies and of Director Allen at the hearings prompted Senate Intelligence Committee chairman Sen. Frank Church to conclude that Project SHAMROCK was “probably the largest government interception program affecting Americans ever undertaken.”<34>

Project MINARET

A sister project to Project SHAMROCK, Project MINARET involved the creation of “watch lists” by each of the intelligence agencies and the FBI of those accused of “subversive” domestic activities. The watch lists included such notables as Martin Luther King, Malcolm X, Jane Fonda, Joan Baez and Dr. Benjamin Spock.

After the Supreme Court handed down its 1972 Keith decision,<35>  which held that -- while the President could act to protect the country from unlawful and subversive activity designed to overthrow the government -- that same power did not extend to include warrantless electronic surveillance of domestic organizations, pressure came to bear on Project MINARET.<36>  Attorney General Elliot Petersen shut down Project MINARET as soon as its activities were revealed to the Justice Department, despite the fact that the FBI (an agency under the Justice Department’s authority) was actively involved with the NSA and other intelligence agencies in creating the watch lists.

Operating between 1967 and 1973, over 5,925 foreigners and 1,690 organizations and US citizens were included on the Project MINARET watch lists. Despite extensive efforts to conceal the NSA’s involvement in Project MINARET, NSA Director Lew Allen testified before the Senate Intelligence Committee in 1975 that the NSA had issued over 3,900 reports on the watch-listed Americans.<37>  Additionally, the NSA Office of Security Services maintained reports on at least 75,000 Americans between 1952 and 1974. This list included the names of anyone that was mentioned in a NSA message intercept.

Operation CHAOS

While the NSA was busy snooping on US citizens through Projects SHAMROCK and MINARET, the CIA got into the domestic spying act by initiating Operation CHAOS. President Lyndon Johnson authorized the creation of the CIA’s Domestic Operations Division (DOD), whose purpose was to “exercise centralized responsibility for direction, support, and coordination of clandestine operations activities within the United States….”

When Johnson ordered CIA Director John McCone to use the DOD to analyze the growing college student protests of the Administration’s policy towards Vietnam, two new units were set up to target anti-war protestors and organizations: Project RESISTANCE, which worked with college administrators, campus security and local police to identify anti-war activists and political dissidents; and Project MERRIMAC, which monitored any demonstrations being conducted in the Washington D.C. area. The CIA then began monitoring student activists and infiltrating anti-war organizations by working with local police departments to pull off burglaries, illegal entries (black bag jobs), interrogations and electronic surveillance.<38>

After President Nixon came to office in 1969, all of these domestic surveillance activities were consolidated into Operation CHAOS. After the revelation of two former CIA agents’ involvement in the Watergate break-in, the publication of an article about CHAOS in the New York Times<39>  and the growing concern about distancing itself from illegal domestic spying activities, the CIA shut down Operation CHAOS. But during the life of the project, the Church Committee and the Commission on CIA Activities Within the United States (the Rockefeller Commission) revealed that the CIA had compiled files on over 13,000 individuals, including 7,000 US citizens and 1,000 domestic organizations.<40>

The Foreign Intelligence Surveillance Court (FISC)

In response to the discovery of such a comprehensive effort by previous administrations and the intelligence agencies, Congress passed legislation (the Foreign Intelligence Surveillance Act of 1978)<41>  that created a top-secret court to hear applications for electronic surveillance from the FBI and NSA to provide some check on the domestic activities of the agencies. In 1995, Congress granted the court additional power to authorize surreptitious entries.  In all of these actions, Congressional intent was to provide a check on the domestic surveillance abuses mentioned above.

The seven-member court, comprised of federal District Court judges appointed by the Supreme Court Chief Justice, sits in secret in a sealed room on the top floor of the Department of Justice building. Public information about the court’s hearings is scarce; each year the Attorney General is required by law to transmit to Congress a report detailing the number of applications each year and the number granted. With over 10,000 applications submitted to the FISC during the past twenty years, the court has only rejected one application (and that rejection was at the request of the Reagan Administration, which had submitted the application).

While the FISC was established to be the watchdog for the Constitutional rights of the American people against domestic surveillance, it quickly became the lap dog of the intelligence agencies. Surveillance requests that would never receive a hearing in a state or federal court are routinely approved by the FISC. This has allowed the FBI to use the process to conduct surveillance to obtain evidence in circumvention of the US Constitution, and the evidence is then used in subsequent criminal trials. But the process established by Congress and the courts ensures that information regarding the cause or extent of the surveillance order is withheld from defense attorneys because of the classified nature of the court.<42>  Despite Congress’s initial intent for the FISC, it is doubtful that domestic surveillance by means of ECHELON comes under any scrutiny by the court.

Political Uses of ECHELON and UKUSA

Several incidents of domestic spying involving ECHELON have emerged from the secrecy of the UKUSA relationship. What these brief glimpses inside the intelligence world reveal is that, despite the best of intentions by elected representatives, presidents and prime ministers, the temptation to use ECHELON as a tool of political advancement and repression proves too strong.

Former Canadian spy Mike Frost recounts how former British Prime Minister Margaret Thatcher made a request in February 1983 to have two ministers from her own government monitored when she suspected them of disloyalty. In an effort to avoid the legal difficulties involved with domestic spying on high governmental officials, the GCHQ liaison in Ottawa made a request to CSE for them to conduct the three-week-long surveillance mission at British taxpayer expense. Frost’s CSE boss, Frank Bowman, traveled to London to do the job himself. After the mission was over, Bowman was instructed to hand over the tapes to a GCHQ official at their headquarters.<43>

Using the UKUSA alliance as legal cover is seductively easy. As Spyworld co-author Michel Gratton puts it,

The Thatcher episode certainly shows that GCHQ, like NSA, found ways to put itself above the law and did not hesitate to get directly involved in helping a specific politician for her personal political benefit…. [T]he decision to proceed with the London caper was probably not put forward for approval to many people up the bureaucratic ladder. It was something CSE figured they would get away with easily, so checking with the higher-ups would only complicate things unnecessarily.<44>
Frost also told of how he was asked in 1975 to spy on an unlikely target – Prime Minster Pierre Trudeau’s wife, Margaret Trudeau. The Royal Canadian Mounted Police’s (RCMP) Security Service division was concerned that the Prime Minister’s wife was buying and using marijuana, so they contacted the CSE to do the dirty work. Months of surveillance in cooperation with the Security Service turned up nothing of note. Frost was concerned that there were political motivations behind the RCMP’s request: “She was in no way suspected of espionage. Why was the RCMP so adamant about this? Were they trying to get at Pierre Trudeau for some reason or just protect him? Or were they working under orders from their political masters?”<45>
The NSA frequently gets into the political spying act as well. Nixon presidential aide John Ehrlichman revealed in his published memoirs, Witness to Power: The Nixon Years, that Henry Kissinger used the NSA to intercept the messages of then-Secretary of State William P. Rogers, which Kissinger used to convince President Nixon of Rogers’ incompetence. Kissinger also found himself on the receiving end of the NSA’s global net. Word of Kissinger’s secret diplomatic dealings with foreign governments would reach the ears of other Nixon administration officials, incensing Kissinger. As former NSA Deputy Director William Colby pointed out, “Kissinger would get sore as hell…because he wanted to keep it politically secret until it was ready to launch.”<46>

However, elected representatives have also become targets of spying by the intelligence agencies. In 1988, a former Lockheed software manager who was responsible for a dozen VAX computers that powered the ECHELON computers at Menwith Hill, Margaret Newsham, came forth with the stunning revelation that she had actually heard the NSA’s real time interception of phone conversations involving South Carolina Senator Strom Thurmond. Newsham was fired from Lockheed after she filed a whistleblower lawsuit alleging that the company was engaged in flagrant waste and abuse. After a top secret meeting in April 1988 with then-chairman of the House Permanent Select Committee on Intelligence, Rep. Louis Stokes, Capitol Hill staffers familiar with the meeting leaked the story to the Cleveland Plain Dealer.<47>  While Sen. Thurmond was reluctant to pressure for a thorough investigation into the matter, his office revealed at the time that the office had previously received reports that the Senator was a target of the NSA.<48>  After the news reports an investigation into the matter discovered that there were no controls or questioning over who could enter target names into the Menwith Hill system.<49>

The NSA, under orders from the Reagan administration, also targeted Maryland Congressman Michael Barnes. Phone calls he placed to Nicaraguan officials were intercepted and recorded, including a conversation he had with the Foreign Minister of Nicaragua protesting the implementation of martial law in that country. Barnes found out about the NSA’s spying after White House officials leaked transcripts of his conversations to reporters. CIA Director William Casey, later implicated in the Iran-Contra affair, showed Barnes a Nicaraguan embassy cable that reported a meeting between embassy staff and one of Barnes’ aides. The aide had been there on a professional call regarding an international affairs issue, and Casey asked for Barnes to fire the aide. Barnes replied that it was perfectly legal and legitimate for his staff to meet with foreign diplomats.

Says Barnes, “I was aware that NSA monitored international calls, that it was a standard part of intelligence gathering. But to use it for domestic political purposes is absolutely outrageous and probably illegal.”<50>  Another former chairman of the Senate Intelligence Committee has also expressed his concerns about the NSA’s domestic targeting. “It has always worried me. What if that is used on American citizens?” queried former Arizona Senator Dennis DeConcini. “It is chilling. Are they listening to my private conversations on my telephone?”<51>

Seemingly non-controversial organizations have ended up in the fixed gaze of ECHELON, as several former GCHQ officials confidentially told the London Observer in June 1992. Among the targeted organizations they named were Amnesty International, Greenpeace and Christian Aid, an American missions organization that works with indigenous pastors engaged in ministry work in countries closed to Western, Christian workers.<52>

In another story published by the London Observer, a former employee of the British Joint Intelligence Committee, Robin Robison, admitted that Margaret Thatcher had personally ordered the communications interception of the parent company of the Observer, Lonrho, after the Observer had published a 1989 expose charging bribes had been paid to Thatcher’s son, Mark, in a multi-billion dollar British arms deal with Saudi Arabia. Despite facing severe penalties for violating his indoctrination vows, Robison admitted that he had personally delivered intercepted Lonrho messages to Mrs. Thatcher’s office.<53>

It should hardly be surprising that ECHELON ends up being used by elected and bureaucratic officials to their political advantage or by the intelligence agencies themselves for the purpose of sustaining their privileged surveillance powers and bloated budgets. The availability of such invasive technology practically begs for abuse, although it does not justify its use to those ends. But what is most frightening is the targeting of such “subversives” as those who expose corrupt government activity, protect human rights from government encroachments, challenge corporate polluters, or promote the gospel of Christ. That the vast intelligence powers of the United States should be arrayed against legitimate and peaceful organizations is demonstrative not of the desire to monitor, but of the desire to control.

Commercial spying

With the rapid erosion of the Soviet Empire in the early 1990s, Western intelligence agencies were anxious to redefine their mission to justify the scope of their global surveillance system. Some of the agencies’ closest corporate friends quickly gave them an option – commercial espionage. By redefining the term “national security” to include spying on foreign competitors of prominent US corporations, the signals intelligence game has gotten ugly.  And it very well may have prompted the recent scrutiny by the European Union that ECHELON has endured.

While UKUSA agencies have pursued economic and commercial information on behalf of their countries with renewed vigor after the passing of communism in Eastern Europe, the NSA practice of spying on behalf of US companies has a long history. Gerald Burke, who served as Executive Director of President Nixon’s Foreign Intelligence Advisory Board, notes commercial espionage was endorsed by the US government as early as 1970: “By and large, we recommended that henceforth economic intelligence be considered a function of the national security, enjoying a priority equivalent to diplomatic, military, and technological intelligence.”<54>

To accommodate the need for information regarding international commercial deals, the intelligence agencies set up a small, unpublicized department within the Department of Commerce, the Office of Intelligence Liaison. This office receives intelligence reports from the US intelligence agencies about pending international deals that it discreetly forwards to companies that request it or may have an interest in the information. Immediately after coming to office in January 1993, President Clinton added to the corporate espionage machine by creating the National Economic Council, which feeds intelligence to “select” companies to enhance US competitiveness. The capabilities of ECHELON to spy on foreign companies is nothing new, but the Clinton administration has raised its use to an art:

In 1990 the German magazine Der Speigel revealed that the NSA had intercepted messages about an impending $200 million deal between Indonesia and the Japanese satellite manufacturer NEC Corp. After President Bush intervened in the negotiations on behalf of American manufacturers, the contract was split between NEC and AT&T.
In 1994, the CIA and NSA intercepted phone calls between Brazilian officials and the French firm Thomson-CSF about a radar system that the Brazilians wanted to purchase. A US firm, Raytheon, was a competitor as well, and reports prepared from intercepts were forwarded to Raytheon.<55>
In September 1993, President Clinton asked the CIA to spy on Japanese auto manufacturers that were designing zero-emission cars and to forward that information to the Big Three US car manufacturers: Ford, General Motors and Chrysler.<56>  In 1995, the New York Times reported that the NSA and the CIA’s Tokyo station were involved in providing detailed information to US Trade Representative Mickey Kantor’s team of negotiators in Geneva facing Japanese car companies in a trade dispute.<57>  Recently, a Japanese newspaper, Mainichi, accused the NSA of continuing to monitor the communications of Japanese companies on behalf of American companies.<58>
Insight Magazine reported in a series of articles in 1997 that President Clinton ordered the NSA and FBI to mount a massive surveillance operation at the 1993 Asian/Pacific Economic Conference (APEC) hosted in Seattle. One intelligence source for the story related that over 300 hotel rooms had been bugged for the event, which was designed to obtain information regarding oil and hydro-electric deals pending in Vietnam that were passed on to high level Democratic Party contributors competing for the contracts.<59>  But foreign companies were not the only losers: when Vietnam expressed interest in purchasing two used 737 freighter aircraft from an American businessman, the deal was scuttled after Commerce Secretary Ron Brown arranged favorable financing for two new 737s from Boeing.<60>
But the US is not the only partner of the UKUSA relationship that engages in such activity. British Prime Minister Margaret Thatcher ordered the GCHQ to monitor the activities of international media mogul Robert Maxwell on behalf of the Bank of England.<61>  Former CSE linguist and analyst Jane Shorten claimed that she had seen intercepts from Mexican trade representatives during the 1992-1993 NAFTA trade negotiations, as well as 1991 South Korean Foreign Ministry intercepts dealing with the construction of three Canadian CANDU nuclear reactors for the Koreans in a $6 billion deal.<62>  Shorten’s revelation prompted Canadian Deputy Prime Minister Sheila Copps to launch a probe into the allegations after the Mexicans lodged a protest.
But every spy agency eventually gets beat at their own game. Mike Frost relates in Spyworld how an accidental cell phone intercept in 1981 of the American Ambassador to Canada discussing a pending grain deal that the US was about to sign with China provided Canada with the American negotiating strategy for the deal. The information was used to outbid the US, resulting in a three year, $2.5 billion contract for the Canadian Wheat Board. CSE out-spooked the NSA again a year later when Canada snagged a $50 million wheat sale to Mexico.<63>

Another disturbing trend regarding the present commercial use of ECHELON is the incestuous relationship that exists between the intelligence agencies and the US corporations that develop the technology that fuels their spy systems. Many of the companies that receive the most important commercial intercepts – Lockheed, Boeing, Loral, TRW and Raytheon – are actively involved in the manufacturing and operation of many of the spy systems that comprise ECHELON. The collusion between intelligence agencies and their contractors is frightening in the chilling effect it has on creating any foreign or even domestic competition. But just as important is that it is a gross misuse of taxpayer-financed resources and an abuse of the intelligence agencies’ capabilities.

The Warning

While the UKUSA relationship is a product of Cold War political and military tensions, ECHELON is purely a product of the 20th Century – the century of statism. The modern drive toward the assumption of state power has turned legitimate national security agencies and apparati into pawns in a manipulative game where the stakes are no less than the survival of the Constitution. The systems developed prior to ECHELON were designed to confront the expansionist goals of the Soviet Empire – something the West was forced out of necessity to do. But as Glyn Ford, European Parliament representative for Manchester, England, and the driving force behind the European investigation of ECHELON, has pointed out: “The difficulty is that the technology has now become so elaborate that what was originally a small client list has become the whole world.”<64>

What began as a noble alliance to contain and defeat the forces of communism has turned into a carte blanche to disregard the rights and liberties of the American people and the population of the free world. As has been demonstrated time and again, the NSA has been persistent in subverting not just the intent of the law in regards to the prohibition of domestic spying, but the letter as well. The laws that were created to constrain the intelligence agencies from infringing on our liberties are frequently flaunted, re-interpreted and revised according to the bidding and wishes of political spymasters in Washington D.C. Old habits die hard, it seems.

As stated above, there is a need for such sophisticated surveillance technology. Unfortunately, the world is filled with criminals, drug lords, terrorists and dictators that threaten the peace and security of many nations. The thought that ECHELON can be used to eliminate or control these international thugs is heartening. But defenders of ECHELON argue that the rare intelligence victories over these forces of darkness and death give wholesale justification to indiscriminate surveillance of the entire world and every member of it. But more complicated issues than that remain.

The shameless and illegal targeting of political opponents, business competitors, dissidents and even Christian ministries stands as a testament that if America is to remain free, we must bind these intelligence systems and those that operate them with the heavy chains of transparency and accountability to our elected officials. But the fact that the ECHELON apparatus can be quickly turned around on those same officials in order to maintain some advantage for the intelligence agencies indicates that these agencies are not presently under the control of our elected representatives.

That Congress is not aware of or able to curtail these abuses of power is a frightening harbinger of what may come here in the United States. The European Parliament has begun the debate over what ECHELON is, how it is being used and how free countries should use such a system. Congress should join that same debate with the understanding that consequences of ignoring or failing to address these issues could foster the demise of our republican form of government. Such is the threat, as Senator Frank Church warned the American people over twenty years ago.

At the same time, that capability at any time could be turned around on the American people and no American would have any privacy left, such [is] the capability to monitor everything: telephone conversations, telegrams, it doesn’t matter. There would be no place to hide. If this government ever became a tyranny, if a dictator ever took charge in this country, the technological capacity that the intelligence community has given the government could enable it to impose total tyranny, and there would be no way to fight back, because the most careful effort to combine together in resistance to the government, no matter how privately it was done, is within the reach of the government to know. Such is the capability of this technology…
I don’t want to see this country ever go across the bridge. I know the capacity that is there to make tyranny total in America, and we must see to it that this agency and all agencies that possess this technology operate within the law and under proper supervision, so that we never cross over that abyss. That is the abyss from which there is no return.
http://www.ncoic.com/nsapoole.htm

Distorted Memory - Hand of God

Everblue Trading

Special Thanx to Zuhair Murad, Valentin Yudashkyn, Zsazsa Bellagio and Pinterest photo collection
http://www.zuhairmurad.com/pages.aspx?pageid=7
http://www.yudashkin.com/
http://www.eliesaab.com/#/en/home
http://www.gallianostore.com/
http://www.nicolasjebran.com/
http://www.alexandrevauthier.com/
http://zsazsabellagio.blogspot.se/
http://www.charlesalbert.com/default.asp
http://www.outletsverige.se/dam/?gclid=CIDsm6Gi5boCFQld3goddkcAEA
http://www.zalando.se/
http://www.dress-for-less.se/tmpl/home.tmpl
http://www.stylepit.se/search.aspx?search=Jeans&gclid=CPyyptyi5boCFcVX3godEiQAAg
http://www.smartguy.se/brands/gstar?gclid=CKihiPWi5boCFQld3goddkcAEA
http://weddbook.com/wedding/jewellry
http://www.katerinamusetti.com/#!collections/c199t
http://www.designmara.com/index.html
http://yarouse.ro/
http://www.weddings-place.com/
http://www.ebay.com/fashion/outlet
http://www.bhfo.com/
http://www.fashionoutletsofchicago.com/index.php?logoCentre=1
http://eu.hollisterco.com/shop/eu
http://www.guess.eu/en/
http://www.fashionoutletlasvegas.com/index.htm
http://www.6pm.com/
http://www.threedifferent.com/online-clothing-shopping/womens-clothes/2/women-clothing-store.asp
http://www.vogue.co.uk/fashion/trends/2009-10-autumn-winter/couture-jewellery/gallery/390487
L'Odyssée de Cartier - Bruno Aveillan - Quad from QUAD on Vimeo.

The Message (1977)

palpation of the age

What cause generation gap between parents and children? Answer: The number of years between when they were born. A generation gap is not only about the true age difference between parents and children. It is much more related to the different thoughts and due to this the different behaviour between them. Older parents find it difficult to "adjust" to their children and the present youth's, their children's, code of conduct. Many people think that parents should have children earlier because this will make it easier for the children to relate to their parents. In today's societies we find that most people are against young people having children. We only look at the effects on education this might cause, not paying attention to the positive effect young mothers and fathers have on their children when it comes to the "gap". The young parents might not be as responsible as we older people would want them to be and this adds more trouble to the "gap". A lot of the older generations simply do not trust the younger ones to make the right choices because they do not do or think the same way as they do. Younger generations do make mistakes but instead of older generations helping out, we seem to condemn them instead. It is of course the easiest approach to condemn. No wonder why there are so many problems around the world. According to various laws, young people falling in love and due to this make new life, are condemned. If a mother is too young and the father is too old, then we condemn again. Children need protection, but when fathers in a relationship might face prosecution and up to 30 years in prison for an act of actually giving life, then this does not make sense. People can rob, steal, murder and face far less. Children are not stupid and they do not understand why the laws are as strict as they are. As of being terrified by laws, Doe's and Dont's, the generation gap grows larger. Older people that try to help out with generation gap problems often end up in trouble them selves. This because they often have ideas and solutions that are not within the mainstream of thoughts. A lot of older so called mature people are afraid of change. They can't cope with change and are actually scared of it. Some of these fight a battle to the extreme in order to preserve their way of life rather than giving other younger people a fighting chance to prove themselves. http://wiki.answers.com/Q/What_cause_generation_gap_between_parents_and_children

Kajman - Siemasz

Geo Costiniu

Septembrie(1978)

Vezi mai multe video din film
Septembrie (1978)

Under ytan

Don't quite understand people with no regrets in their life. As much as those who wouldn't change a thing in theirs....well, I would. Lots of things. As for regrets......"story of my life", would be right thing to say as an opinion :)
Uno Svenningsson- Under ytan

Marie Fredriksson - Tro

good news, folks:) ...

The Problem With Too Many Millionaires

NEW YORK — The rich are getting richer. That’s the conclusion of the World Wealth Report, the landmark annual study of the world’s millionaires, which was released this week by RBC Wealth Management and Capgemini Financial Services.
The report found that the number of people in the world with more than $1 million to invest soared to a record of 12 million in 2012, a 9.2 percent increase over 2011. The aggregate wealth of this group hit a new high, too — $46.2 trillion — a 10 percent increase over the previous year.

What is particularly striking is that even within this rich group, the very, very rich are doing best of all. The ranks of the ultrarich, whom the report defines as people with investable assets of at least $30 million, surged 11 percent, an even greater rate than the mere millionaires. This small sliver of the global population — 111,000 people — accounted for 35.2 percent of the entire wealth of all the world’s millionaires taken together.
What are the winner-take-all forces driving this extreme concentration of wealth at the top? One explanation was offered earlier this month by Alan Krueger, the Princeton economist and departing chairman of President Barack Obama’s Council of Economic Advisers. Drawing on his own previously published academic work, Mr. Krueger used the economics of what he calls “the rock and roll industry” to illustrate the forces more broadly at work in the world economy.
“We are increasingly becoming a ‘winner-take-all’ economy, a phenomenon that the music industry has long experienced,” Mr. Krueger argued in a speech in Cleveland. “Over recent decades, technological change, globalization and an erosion of the institutions and practices that support shared prosperity in the U.S. have put the middle class under increasing stress. The lucky and the talented — and it is often hard to tell the difference — have been doing better and better, while the vast majority has struggled to keep up.”
The classic free-market capitalist answer to this has been, “So what?”
N. Gregory Mankiw, a professor of economics at Harvard University, thoughtfully makes that case in “Defending the One Percent,” a paper to appear in the summer issue of the Journal of Economic Perspectives, which will showcase a number of studies on the rise of the global 1 percent.
Professor Mankiw begins his argument with a thought experiment, in which an imagined “egalitarian utopia” is disrupted “by an entrepreneur with an idea for a new product.”
“Think of the entrepreneur as Steve Jobs as he develops the iPod, J.K. Rowling as she writes her Harry Potter books, or Steven Spielberg as he directs his blockbuster movies. When the entrepreneur’s product is introduced, everyone in society wants to buy it. They each part with, say, $100. The transaction is a voluntary exchange, so it must make both the buyer and the seller better off. But because there are many buyers and only one seller, the distribution of economic well-being is now vastly unequal. The new product makes the entrepreneur much richer than everyone else.”
Professor Mankiw argues that this imagined scenario “captures, in an extreme and stylized way, what has happened to U.S. society over the past several decades,” and it forms the basis of his self-described defense of the winner-take-all economy.
Of course, as Professor Mankiw himself realizes, this stylized story of the rise of the 1 percent presents the group in their most attractive guise. It doesn’t include the commodities barons who have become rich by securing control of natural resources, or the bankers who have benefited from the heads-I-win-tails-you-lose deregulation of the financial services industry, or the C.E.O.’s who haven’t invented anything but have profited from a culture of soaring executive pay.
Yet, even with those caveats, Professor Mankiw makes an essential point, and one that anyone who is worried about rising income inequality needs to reckon with — many of the ultra-high-net-worth individuals flourishing in today’s global economy are admirable entrepreneurs, and we would all be poorer without them.
What, then is the problem? The biggest one, alluded to by Mr. Krueger, is that the rise of the ultrarich isn’t occurring in isolation. It is taking place in lock step with a darker phenomenon — the hollowing out of the global middle class. The 2012/13 Global Wage Report by the International Labor Organization, a U.N. agency, found a world trend of a decreasing workers’ share in the national income. That is true even in China, where wages are rising fast but gross domestic product is growing even more strongly.
What is most worrying is that labor productivity — which used to be the secret sauce for making everyone better off — has a diminished impact on wages. In the United States, according to the I.L.O., labor productivity in the nonfarm business sector has increased about 85 percent since 1980, while real wages have grown just 35 percent. Even in Germany, which we often see as a middle-class success story, labor productivity grew by nearly a quarter over the past 20 years, but real wages remained flat.
The second big, bad consequence is declining social mobility. Miles Corak, a Canadian economist whose paper is due to be published alongside Professor Mankiw’s, shows that rising income inequality coincides with declining equality of opportunity. The 1 percent is very good at passing on its privilege, and those born at the bottom are finding it harder to climb up.
That is the great paradox of today’s winner-take-all economy. At its best, it is driven by adopted dropouts like Steve Jobs or struggling single mothers like J.K. Rowling, who come up with something amazing and manage to prosper — and to enrich us all. But the winner-take-all economy will make such breakthroughs for anyone who didn’t make the wise choice of being born into the 1 percent harder and harder in the future, which is why we urgently need to come up with ways to soften its impact.
Chrystia Freeland is managing director and editor, consumer news, Thomson Reuters.
http://www.nytimes.com/2013/06/21/us/21iht-letter21.html?_r=0

          the feeling in the year 2525

today's "seek and hide" ;)

Mum and Dad are getting old, needing care, but hey, the kids, they really need the money. Early Inheritance Syndrome is tearing families apart — and it’s about to get worse, with aged-care reforms putting the family home in the balance.

Nearly all people on the other side of middle-age know someone engaged in bitter battles with their siblings over the care of ageing parents, and their money.

Brothers and sisters who may have drifted apart or loathe each other, who have lived in separate homes, cities or countries for decades, find themselves in their 50s and 60s drawn into the old family dynamics whether they like it or not.

When Mum breaks her hip and goes into sudden decline, when Dad’s dementia can no longer be ignored, when the status quo is upset and the family must re-engage to make decisions, the scene is set for sibling rivalries to re-emerge.

It’s a scenario older than King Lear. The psychological underpinnings are eternal: jealousy, greed, guilt, and competition for parental love.

But forces in modern society are increasing the number and ferocity of sibling struggles, according to the growing band of “elder” lawyers and mediators who specialise in the area.

“I work in ugly things day after day,” says Pam Suttor, a specialist in elder law who co-chairs the Law Council of Australia’s national elder law and succession law committee.

Parents are living longer. The 85-and-over age group is the fastest growing in Australia, and more have dementia. They are staying at home longer, dependent on family care for extended periods.

There are more children from those big, post-war families to wrangle over decisions: who is the primary carer, who has financial control, who is mismanaging Mum’s money, who isn’t pulling their weight ...

And a parent’s death doesn’t end the fighting; the value of the parental home has increased so dramatically over the decades that more siblings consider it worthwhile going to court over the estate, destroying whatever skerrick of good will may have survived.

“Thirty or 40 years ago, it was a huge thing to dispute a will, and only the rich did it,” says Rodney Lewis, a specialist lawyer and author of Elder Law in Australia. “With increasing wealth we’ve become more litigious and this is one of the areas it’s manifest.”

WITH MAJOR FEDERAL CHANGES in aged care funding to start next year, the scene is set for potentially more intra-family battles. More people will have to sell the family home — or otherwise find serious money — for nursing home bonds for high-level care. Previously this was the case for only low-level care centres.

With high-level care, it will be the sons and daughters called upon to decide on behalf of parents with dementia whether to sell the home, or to battle on caring for Mum or Dad themselves — and preserve the inheritance intact.

The dirty sibling wars over parental care, love and money have remained under the radar till recent times. But that has begun to change. It is only in the past five years, for example, that the Guardianship Tribunal of New South Wales, established 25 years ago, has begun to publish (a limited selection of) its decisions.

Originally established as a legal forum to protect the finances and wellbeing mainly of people with intellectual disabilities, it increasingly deals with the affairs of elderly people.

“I saw the best and worst of families, and there were horror stories,” says Diane Robinson, former president of the tribunal, who saw the increasing intensity and frequency of disputes over elders during her two decades at the tribunal.

Sibling fights are typically, but not exclusively, about money. “Some adult children see Mum’s money as their own even when she hasn’t died yet,” Robinson says. “Many times I’ve heard people say, ‘She doesn’t need money, it’s going to be mine shortly, anyway.’ I’ve said, ‘Why not send her flowers every week; she loves music, buy her a stereo.’ It’s very convenient for them to think elderly people have few needs.”

While parents are alive, but their capacity to make decisions is in dispute, control of their affairs, their money and who will make decisions for them are usually heard in state guardianship or administration tribunals if the family can’t settle the matter itself. When parents are dead, and the dispute is over a will, the matter is heard in the Supreme Court.

Trouble commonly erupts when a parent sells her home and moves in with the adult child who offers to care for her until death. The parent transfers a large sum of money to the carer. It may disappear into elaborate home renovations, or into the adult child’s business ventures in a case of what Robinson calls “early inheritance syndrome”.

Take the case of the daughter who accused her older sister, the father’s favourite and primary carer, of using the proceeds of the sale of their father’s house to buy a newsagency. There were suspicions of financial abuse and lack of proper care, but the father was deemed sufficiently competent to make his own decisions. Elder law specialist Peter Gauld recalls that the younger sister was powerless to stop the inheritance being siphoned off into her sibling’s business.

“The relationship between the siblings couldn’t have been worse,” Gauld says. “The younger sister intended to dob her sister into the Tax Office and Centrelink.”

Under the law, money transferred to a child by a parent is presumed to be a gift unless there is strong evidence, or documents, pointing to the contrary. And if the carer reneges on the bargain of lifetime care, evicts the parent or consigns her to the most basic nursing home on the grounds her needs are simple, there may be little the other siblings can do.

The world of carers is replete with hard-working, long-suffering and loving siblings co-operating, muddling through, going to herculean effort to look after their frail and dependent parents.

But at the same time there has been rising concern over elder abuse, particularly financial abuse, which has prompted some official inquiries and initiatives that have shed light on the shadowy world of family care.

A 2011 study by Monash University, commissioned by State Trustees Victoria, cited a consensus among professionals that one quarter of families failed to take care of their older members “within an environment of mutual love and trust”.

The mean age of victims of financial mismanagement was 80, women were more likely than men to be abused, and the perpetrator was “most likely to be a son or daughter’’.

The study, For Love Or Money (intergenerational management of older Victorians’ assets), said older people believed “when you have a family you do not need documents’’. But “impatient children” had an overwhelming sense of entitlement to their parents’ assets at a time when those assets were increasingly needed to fund long-term elder care.

WHEN MIDDLE-AGED SIBLINGS are forced to “re-enter the house of childhood”, as author Francine Russo has put it, the worst implosions are captured in the decisions of the guardianship tribunals.

Take the case of Victor (names changed for legal reasons), an 84-year-old with mild dementia and little English; father of five adult children, and husband to Loretta, who also suffers dementia. The family had hung together until crisis struck. But when Victor was rushed to hospital after a fall, the unravelling began.

Loretta’s condition suddenly deteriorated and she was put into respite nursing care which became a permanent placement. It was over Victor that the fight between the siblings raged. After he was discharged from hospital, the siblings disagreed on whether he should join Loretta or live at home.

At the nub of the dispute was “how best to honour their parents’ wishes to be together balanced with their parents’ health care needs”, according to the Victorian Civil and Administrative Tribunal.

Two siblings, one with an enduring power of attorney to manage the father’s affairs, were adamant he should be with his wife, “as they had always been together’’, and he was too confused and ill to be cared for at home.

Three siblings challenged their brother’s power of attorney. They argued they had already set in place a 24-hour, seven-day a week roster for caring for their father, augmented with home care services. He’d looked after his wife for three years since the onset of her dementia, and he’d had enough, they said. He didn’t want to join Loretta in the nursing home.

A hearing room filled with the warring siblings, some of their spouses, their father and his interpreter, saw family life at its worst. One sibling claimed she had been verbally threatened by her siblings when she had visited her father. They weren’t looking after him properly and he had been put on anti-depressants, she said. Another sibling said he was being denied access to his father.

In this case, the decision was not so difficult for the tribunal. Though it was agreed Victor had dementia it was not so advanced as to rule out his having a say in his own life. Given the opportunity, he told the tribunal he wanted to stay at home. But the tribunal felt it necessary to appoint an independent guardian for a limited time to sort out the issue of the estranged siblings’ access to their father.

In most cases the sibling who becomes a live-in carer makes a huge sacrifice. But cases of the free-loader carer are not unheard of, according to elder lawyer Brian Herd.

Typically they are the no-hoper sibling who never left the parental home, or had to move back in. They enjoy free board and exercise tyrannical control over an intimidated parent, shutting out their brothers and sisters.

Alan (names changed for legal reasons), a father of two adult children, had lived with his 89-year-old mother in her house for 12 years. He had enduring power of attorney to manage her affairs. His sister, Sandra, challenged this authority, claiming their mother “would never have given Alan control over anything’’. She said he refused to pay rent or leave the house even after the mother was moved into a low-care nursing home and funds were needed to pay the $150,000 accommodation bond.

“He considers the house belongs to him,” Sandra said.

The guardianship tribunal found Alan was “unable to distinguish between his own interests and that of his mother’’. But it also found that in relation to the need to sell the house, Sandra was primarily motivated by “hostility towards her brother’’. It appointed an independent financial manager.

As more octogenarians and nonagenarians skip a generation in their bequests, considering their grandchildren more needy or worthy, Supreme Court battles are increasingly fought between baby boomers and their children or nieces and nephews.

In the case of Kastrounis v Foundouradakis, 88-year-old grandmother Erini had transferred her house before death to her three favourite granddaughters in their 40s. They reaped $180,000 each while Erini’s three children in their 60s were left $10,000 each in the will. “I want to look after the people who have looked after me,” Erini reportedly had told her lawyer. But two of Erini’s children challenged in the Supreme Court of NSW and in the end the granddaughters had to hand over $65,000 and $35,000 respectively to their uncle and aunt.

THE JAUNDICED EYE OF the elder law specialist sees sibling skirmishes everywhere because the brothers and sisters who co-operate magnificently or do their best through the challenge of elder care never need grace the specialist’s doorstep.

Even so, for most baby boomers with frail and dependent parents, this is a new life-stage that requires them to make “a developmental leap”, says Francine Russo, author of They’re Your Parents Too! (How Siblings Can Survive Their Parents’ Aging Without Driving Each Other Crazy).

“How we navigate this passage with our siblings determines, in large part, whether we remain a connected family after our parents die, and what our connection will be like,” she says.

Lawyer Brian Herd believes many of problems could be avoided if parents and siblings drew up a legal contract known as a Family Agreement. Such agreements would bring greater transparency to what he calls “the wild west of family care’’, making explicit the under-the-table arrangements over parent-to-child loans, for example, or unspoken expectations about care.

The agreement might spell out that the child who moves in with Mum to be her full-time carer could be paid a wage from Mum’s funds at the local community home care rates. “This potentially reduces disputes over wills by compensating the carer in the parent’s lifetime,” Herd says.

If only parents when capable of doing so made more decisions about their future needs, siblings might have an easier time. Parents don’t want to be a burden, says Herd, but they don’t plan for aged care, either. “People think they’ll be abseiling in old age.”

As Russo points out, siblings should clean up their relationships before parents have a problem. In the midst of a crisis everything is worse. But few siblings, it seems, ever take this suggestion.

http://www.theglobalmail.org/feature/the-new-nasty-sibling-rivalry/567/
http://www.thefamilywar.com/introduction.htm
http://money.usnews.com/money/personal-finance/articles/2012/07/17/how-to-avoid-fights-over-inheritance
http://www.dailyfinance.com/2013/08/07/stop-family-feuds-inheritances-before-they-start/

Oscar Benton - Buy buy