World news
US foreign policy in Latin America leaves an open door for China | Mark Weisbrot
America's 'pivot' to Asia along with decades of heavy-handed policy give China an opportunity to rebalance global powers
In the last week or so much of the international business press has been focused on the problems of financial stability in developing countries, some of whom have recently become more vulnerable to capital outflows. The main cause is that investors are trying to get the jump on possible moves by the US Federal Reserve to allow interest rates to rise, which will draw capital from developing countries and cause their borrowing costs to rise.
Argentina has gotten some of this attention, as it allowed the peso to fall by 15% in one day and increased some access for Argentines to dollars on the official market. Venezuela is not as affected by these market developments, but is always negatively portrayed in the international media, and more so since its exchange rate system problems have caused its inflation to rise to an annual rate of 56% over the past year.
Greece: signs of growth come as austerity eases | Mark Weisbrot
The IMF's austerity plan hasn't worked. Greece's possible recovery is down to a construction programme boosting the economy
It was nearly four years ago that the Greek government negotiated its agreement with the IMF for a harsh austerity programme that was ostensibly designed to resolve its budget problems. Many economists, when we saw the plan, knew immediately that Greece was beginning a long journey into darkness that would last for many years. This was not because the Greek government had lived beyond its means or lied about its fiscal deficit. These things could have been corrected without going through six or more years of recession. It was because of the "solution" itself.
Four years later, Greece is down by about a quarter of its pre-recession national income – one of the worst outcomes of a financial crisis in the past century, comparable to the worst downturn of the US's Great Depression. Unemployment has passed 27% and more than 58% for young people (under 25). There are fewer Greeks employed than there have been at any time in the past 33 years. And real public healthcare spending has been cut by more than 40%, at a time when people need the public health system more than ever.
Obama's NSA 'reforms' are little more than a PR attempt to mollify the public | Glenn Greenwald
Obama is draping the banner of change over the NSA status quo. Bulk surveillance that caused such outrage will remain in place
In response to political scandal and public outrage, official Washington repeatedly uses the same well-worn tactic. It is the one that has been hauled out over decades in response to many of America's most significant political scandals. Predictably, it is the same one that shaped President Obama's much-heralded Friday speech to announce his proposals for "reforming" the National Security Agency in the wake of seven months of intense worldwide controversy.
The crux of this tactic is that US political leaders pretend to validate and even channel public anger by acknowledging that there are "serious questions that have been raised". They vow changes to fix the system and ensure these problems never happen again. And they then set out, with their actions, to do exactly the opposite: to make the system prettier and more politically palatable with empty, cosmetic "reforms" so as to placate public anger while leaving the system fundamentally unchanged, even more immune than before to serious challenge.
The president should end – not mend – the government's collection and retention of all law-abiding Americans' data. When the government collects and stores every American's phone call data, it is engaging in a textbook example of an 'unreasonable search' that violates the constitution.
Why has Europe's economy done worse than the US? | Mark Weisbrot
The eurozone experience shows what can happen when people lose control over their government's economic policies
If we compare the economic recovery of the United States since the Great Recession with that of Europe – or more specifically the eurozone countries – the differences are striking, and instructive. The US recession technically lasted about a year and a half – from December 2007 to June 2009. (Of course, for America's 20.3 million unemployed and underemployed, and millions of others, the recession never ended – but more on that below.) The eurozone had a recession of similar length from around January 2008 to April 2009. But it then fell into a longer recession in the third quarter of 2011 that lasted for another two years, and may only be exiting that recession currently.
This makes a big difference in people's lives. In the eurozone, unemployment is at near record levels of 12.1%; while in the US, it is currently 6.7%. Despite the incompleteness of these measures, these numbers are comparable. And, of course, in Spain and Greece unemployment is 26.7 and 27.8%, respectively, with youth unemployment at an intolerable 57.4 and 59.2%.
Historical experience indicates that successful fiscal consolidations were often launched in the midst of economic downturns or the early stages of recovery.
Why the world should care about Honduras' recent election | Mark Weisbrot
Hondurans are revolting against the US-backed outcome. There are too many reports of rampant vote-buying, fraud and violence
Election results are often contested, and that is one reason why governments sometimes invite official observer missions from inter-governmental bodies such as the Organization of American States (OAS) or European Union (EU). But there are times and places when these outside organizations don't provide much in the way of independent observation.
On Sunday, 24 November, Hondurans went to the polls to choose a new president, congress, and mayors. There were a lot of concerns about whether a free and fair election was possible in the climate of intimidation and violence (pdf) that prevailed in the country. As I noted before the vote, members of both the US House of Representatives and the US Senate had, in the prior six months, written to US Secretary of State John Kerry, expressing their concerns.
I can attest to countless inconsistencies in the electoral process. There were people who could not vote because they showed up as being dead, and there were dead people who voted … the hidden alliance between the small parties and the National Party led to the buying and selling of votes and [electoral worker] credentials … During the transmission of the results there was no possibility to find out where the tallies were being sent and we received reliable information that at least 20% of "the original tally sheets were being diverted to an illegal server.
As Europe erupts over US spying, NSA chief says government must stop media | Glenn Greenwald
With General Alexander calling for NSA reporting to be halted, US and UK credibility as guardians of press freedom is crushed
The most under-discussed aspect of the NSA story has long been its international scope. That all changed this week as both Germany and France exploded with anger over new revelations about pervasive NSA surveillance on their population and democratically elected leaders.
As was true for Brazil previously, reports about surveillance aimed at leaders are receiving most of the media attention, but what really originally drove the story there were revelations that the NSA is bulk-spying on millions and millions of innocent citizens in all of those nations. The favorite cry of US government apologists -–everyone spies! – falls impotent in the face of this sort of ubiquitous, suspicionless spying that is the sole province of the US and its four English-speaking surveillance allies (the UK, Canada, Australia and New Zealand).
The head of the embattled National Security Agency, Gen Keith Alexander, is accusing journalists of "selling" his agency's documents and is calling for an end to the steady stream of public disclosures of secrets snatched by former contractor Edward Snowden.
"I think it's wrong that that newspaper reporters have all these documents, the 50,000 – whatever they have and are selling them and giving them out as if these – you know it just doesn't make sense," Alexander said in an interview with the Defense Department's "Armed With Science" blog.
Brazil: Glenn Greenwald condemns 'war against journalism' at senate - video
Journalist Glenn Greenwald and his partner, David Miranda, address Brazilian senate over the NSA revelations. The Guardian writer claims the US and British governments are fighting against press transparency and covering government espionage for financial gain. Miranda says his detention under a terrorism law was a ploy to intimidate the newspaper Continue reading...
NSA and GCHQ target Tor network that protects anonymity of web users
• Top-secret documents detail repeated efforts to crack Tor
• US-funded tool relied upon by dissidents and activists
• Core security of network remains intact but NSA has some success attacking users' computers
• Bruce Schneier: the NSA's attacks must be made public
• Attacking Tor: the technical details
• 'Peeling back the layers with Egotistical Giraffe' – document
• 'Tor Stinks' presentation – full document
• Tor: 'The king of high-secure, low-latency anonymity'
The National Security Agency has made repeated attempts to develop attacks against people using Tor, a popular tool designed to protect online anonymity, despite the fact the software is primarily funded and promoted by the US government itself.
Top-secret NSA documents, disclosed by whistleblower Edward Snowden, reveal that the agency's current successes against Tor rely on identifying users and then attacking vulnerable software on their computers. One technique developed by the agency targeted the Firefox web browser used with Tor, giving the agency full control over targets' computers, including access to files, all keystrokes and all online activity.
NSA shares raw intelligence including Americans' data with Israel
• Secret deal places no legal limits on use of data by Israelis
• Only official US government communications protected
• Agency insists it complies with rules governing privacy
• Read the NSA and Israel's 'memorandum of understanding'
The National Security Agency routinely shares raw intelligence data with Israel without first sifting it to remove information about US citizens, a top-secret document provided to the Guardian by whistleblower Edward Snowden reveals.
Details of the intelligence-sharing agreement are laid out in a memorandum of understanding between the NSA and its Israeli counterpart that shows the US government handed over intercepted communications likely to contain phone calls and emails of American citizens. The agreement places no legally binding limits on the use of the data by the Israelis.