Cyber: When War Isn’t War

Posted on May 19, 2014May 19, 2014 by Denise Simon

The most under reported war across the globe is cyber-spying. It has only been this week that Eric Holder and the Department of Justice decided to arrest a handful of Chinese that have been cyber-spying on America for years among other factions.

Cyber threats and hackers is nothing new, but it is rarely reported until it involves citizens like in the matter of Target stores last year. The question that remains officially unanswered is just why has the United States been so soft on cyber-wars against the United States? The answer is in fact foreign policy trumps everything and that should cause some real head-scratching as foreign policy under Barack Obama via Hillary Clinton and John Kerry is decayed.

There is the Syrian Electronic Army, Turkey’s RedHack, Serbia’s TeslaTeam, China has them, Russia has them, Iran has them. Hackers are the 21st century nuclear weapons. In fact nuclear weapons secrets is just what the Chinese hackers were after and are now sought by Eric Holder.

The United States brought first-of-its kind cyber-espionage charges Monday against five Chinese military officials accused of hacking into U.S. companies to gain trade secrets.

According to the indictment, hackers targeted the U.S. nuclear power, metals and solar products industries and are accused of stealing trade secrets and economic espionage. The victims are Alcoa World Alumina, Westinghouse Electric Co., Allegheny Technologies, U.S. Steel Corp., United Steelworkers Union, and SolarWorld, Attorney General Eric Holder said.

The charges underscore a longtime Obama administration goal of prosecuting state-sponsored cyber threats.

“The alleged hacking appears to have been conducted for no other reason than to advantage state-owned companies and other interests in China at the expense of businesses here in the United States,” Holder told a news conference at the Justice Department. “This is a tactic that the United States government categorically denounces.”

Said Bob Anderson Jr., executive assistant director of the FBI’s criminal, cyber response and services division: “This is the new normal. This is what you’re going to see on a recurring basis.”

In a statement, China’s Foreign Ministry said the U.S. charges were based on “fabricated facts” and jeopardize China-U.S. “cooperation and mutual trust.”

US Government: China Cited in Cyber-spying Case

“China is steadfast in upholding cybersecurity,” said the statement. “The Chinese government, the Chinese military and their relevant personnel have never engaged or participated in cyber theft of trade secrets. The U.S. accusation against Chinese personnel is purely ungrounded and absurd.”

The charges against the Chinese military officials come on the heels of a separate worldwide operation over the weekend that resulted in the arrest of 97 people in 16 countries who are suspected of developing, distributing or using malicious software called BlackShades, Holder said. The software allows criminals to gain surreptitious control of personal computers. An announcement on those arrests was expected for later Monday in New York.

“These two cases show that we are stepping up our cyber enforcement efforts really around the globe,” Holder said, adding that the U.S. will not tolerate these activities.

U.S. officials have previously asserted that China’s army and China-based hackers had launched attacks on American industrial and military targets, often to steal secrets or intellectual property. China has said that it faces a major threat from hackers, and the country’s military is believed to be among the biggest targets of the NSA and U.S. Cyber Command.

“It is our hope that the Chinese government will respect our criminal justice system,” Holder said.

Attorney General Eric Holder, accompanied by, from …

In recent months, Washington has been increasingly critical of what it describes as provocative Chinese actions in pursuit of territorial claims in disputed seas in East Asia. For its part, Beijing complains that the Obama administration’s attempt to redirect its foreign policy toward Asia after a decade of war in the Middle East is emboldening China’s neighbors and causing tension.

The hackers allegedly stole emails and other communications that could have helped Chinese firms learn the strategies and weaknesses of American companies involved in litigation with the Chinese government or Chinese firms.

Despite the ominous-sounding allegations, at least one of the firms downplayed the hacking.

“To our knowledge, no material information was compromised during this incident, which occurred several years ago,” said Monica Orbe, Alcoa’s director of corporate affairs. “Safeguarding our data is a top priority for Alcoa, and we continue to invest resources to protect our systems.”

Last September, President Barack Obama discussed cybersecurity issues on the sidelines of a summit in St. Petersburg, Russia, with Chinese President Xi Jinping.

“China not only does not support hacking but also opposes it,” Premier Li Keqiang said last year in a news conference when asked if China would stop hacking U.S. websites. “Let’s not point fingers at each other without evidence but do more to safeguard cyber security.”

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But hacking still does threaten common citizens and yet no one tells us much less provides the tools to protect us.

Computer hacker forums lit up last week as Federal Bureau of Investigation agents and police in 17 countries began knocking on doors, seizing computers and making arrests.

On the popular websites where cyber criminals buy and sell software kits and help each other solve problems, hackers issued warnings about police visits to their homes.

The hackers quickly guessed that a major crackdown was underway on users of the malicious software known as Blackshades.

The malware sells for as little as $40. It can be used to hijack computers remotely and turn on computer webcams, access hard drives and capture keystrokes to steal passwords — without victims ever knowing it.

Criminals have used Blackshades to commit everything from extortion to bank fraud, the FBI said.

Last week, watching it all play out were about two dozen FBI cybercrime investigators holed up in the New York FBI’s special operations center, high above lower Manhattan.

Rows of computer screens flickered with updates from police in Germany, Denmark, Canada, the Netherlands and elsewhere. Investigators followed along in real time as hundreds of search warrants were executed and suspects were interviewed.

One of the largest global cybercrime crackdowns has yielded the arrests of over 100 people linked to the Blackshades malware.

The sweep, capping a two-year operation, was coordinated so suspects didn’t have time to destroy evidence. It included the arrest in Moldova of a Swedish hacker who was a co-creator of Blackshades. Prosecutors in the Manhattan U.S. attorney’s office are expected to announce the results of the probe later Monday.

700,000 victims around the world: Inside the FBI special operations center, six large computer monitors displayed key parts of the probe. Agents kept an eye on one screen showing a popular website where Blackshades was sold. The site was taken down by the FBI.

Another monitor showed a heatmap of the world displaying the locations of the 700,000 estimated victims, whose computers have been hijacked by criminals using the Blackshades software. Splotches of green on the map indicated concentrations of infected computers in highly populated parts of the U.S., Europe, Asia and Australia.

The FBI said that in just a few years Blackshades has become one of the world’s most popular remote-administration tools, or RATs, used for cybercrime.

Leo Taddeo, chief of the FBI’s cybercrime investigations in New York, said the unprecedented coordination with so many police agencies came about because of concern about the fast growth of cybercrime businesses.

“These cyber criminals have paid employees, they have feedback from customers — other cyber criminals — to continually update and improve their product,” Taddeo said recently. While he spoke, agents took calls from counterparts working the case in more than 40 U.S. cities.

Blackshades had grown rapidly because it was marketed as off-the-shelf, easy to use software, much like legitimate consumer tax-preparation software.

“It’s very sophisticated software in that it is not very easy to detect,” Taddeo said. “It can be installed by somebody with very little skills.”

Hack victim: ‘I felt completely violated’: For victims whose personal computers were turned into weapons against them, the arrests bring reassurance.

Cassidy Wolf, the reigning Miss Teen USA, received an ominous email message in March 2013.

The email, from an unidentified sender, included nude photos of herself, obviously taken in her bedroom from her laptop. “Either you do one of the things listed below or I upload these pics and a lot more … on all your accounts for everybody to see and your dream of being a model will be transformed into a porn star,” the email said.

And so began what Wolf describes as three months of torture.

The email sender demanded better quality photos and video, and a five-minute sex show via Skype, according to FBI documents filed in court. He told her she must respond to his emails immediately — software he had installed told him when she opened his messages.

“I felt completely violated,” Wolf said in an interview. “I felt scared because I didn’t know if this person was a physical threat. My whole sense of security and trust was gone.”

A former classmate she knew, Jared Abrahams, had installed Blackshades malware on Wolf’s laptop. In March, the 20-year-old computer science student was sentenced to 18 months in prison after pleading guilty to extortion and unauthorized access of a computer.

Abrahams had been watching her from her laptop camera for a year, Wolf later learned. The laptop always sat open in her bedroom, as she played music or communicated with her friends.

Abrahams had used Blackshades to target victims from California to Maryland, and from Russia to Ireland. He used the handle “cutefuzzypuppy” to get tips on how to use malware, according to FBI documents. In all, he told the FBI, he had controlled as many as 150 computers.

Cybercriminals like Abrahams often rely on weak links in computer security, and mistakes by victims, to infect computers.

Many computer users don’t update anti-virus software. Many click on links sent in messages on social media sites such as Facebook, or in email, without knowing what they’re clicking on. In seconds, malware is downloaded. Often computer users have no idea infection has taken place.

“A hacker is going to go for the low-hanging fruit,” said Tyler Cohen Wood, a cybersecurity expert at the Defense Intelligence Agency and author of the book “Catching the Catfishers.”

Victims often don’t realize how easy they make themselves to be targeted and can better protect themselves by being careful about what they reveal online, Wood said.

Taddeo, the FBI cyber chief, said the most common way criminals have used Blackshades to target victims is by sending emails that seem legitimate, perhaps with a marketing offer, and with a link to click. “Anyone who signs on to the internet is potentially a victim of this tool,” he said.

In Wolf’s case, she received a Facebook message related to teen pageants. When her computer was infected it sent messages to other friends, whose computers also became infected.

The episode has made Wolf into a campaigner to urge young people to be better educated about online safety. She said her passwords are now more complicated and unique for each account, and she changes them often. She uses updated security software.

“I really didn’t think that everything I worked for could be lost because of this,” she said. “This can happen to anybody.”

The Persian Incursion the U.S. Ignores

Posted on May 18, 2014May 18, 2014 by Denise Simon

Once again, John Kerry’s attempt to restart the peace talks between Israel and Palestine failed again yesterday with no progress. Talks are slated to go another round in June, all of this is a fool’s errand.

While Kerry is on his way to log as many travel miles as Hillary flew during her term at SecState, Kerry has abandoned concentration on several fronts least of which is Iran’s nuclear program. Rouhani is moving completely unchecked and quite aggressively against the United States with regard to declaring victory in Syria, his nuclear weapons program and signing deals all over the globe. Diplomatic efforts by Barack Obama and John Kerry are folly. Yet, what else is Iran doing that should terrify America? One victory Iran is having is their clandestine cyber war, titled Saffron Rose.

A group of Iranian hackers have allegedly been targeting American defense contractors, and attempting to quell dissent in Iran itself, in an elaborate and technically advanced campaign that American security researchers call “Operation Saffron Rose.” The attacks began in October 2013 and continued until at least April 8, according to Milpitas, California-based security company FireEye, which documented the operation in a report released yesterday (May 13).

FireEye suspects that the group behind Saffron Rose is Ajax Security Team, whose members are thought to have conducted politically-motivated website defacements for several years. The group’s “graduation” from vandalism to espionage shows that Iranian actors in the cyber attack space are becoming more sophisticated, FireEye says.

The “proxy software” was, of course, malicious.

According to FireEye, Ajax Security Team often uses a type of spyware that FireEye calls “Stealer.” Stealer often arrives as a Trojan horse, secretly bundled into other software such as proxies or VPN clients.

Once a target installs an infected program, Stealer runs a program called IntelRS.exe, which snoops on infected computers in a variety of ways. These methods include keylogging, taking screenshots, gathering system information (IP addresses, usernames, hostnames, open ports, installed applications), collecting email and instant messaging information, and collecting browser-based information such as login credentials, browsing history, cookies and bookmarks.

Stealer encrypts the data it gathers, then sends it to a command-and-control server. FireEye said one such server contained information on 77 individuals targeted in Operation Saffron Rose.

Many of the programs used to conceal Stealer are anti-censorship programs such as Psiphon, which don’t seem to be targeted toward the American defense companies that have been Ajax Security Team’s most recent targets. (One of Psiphon’s lead developers at the University of Toronto was Nart Villeneuve, who went on to become a malware researcher and is lead author of FireEye’s Saffron Rose report.)

The anti-censorship programs often appeared to be set to Iran Standard Time (which is uniquely three and a half hours ahead of Greenwich Mean Time) and had a Persian-language setting. FireEye believes that Ajax Security Team may also be targeting Iranians who use anti-censorship programs to dodge Iran’s strict Internet regulations.

Interestingly, FireEye’s report observed that Ajax Security Team has not been spotted using zero-day exploits, or secret vulnerabilities in program code, although the team has been seen using publicly known and unpatched exploits in its cybervandalism activities.

“It is unclear if they or other Iranian actors are capable of producing or acquiring exploit code,” FireEye’s researchers wrote.

FireEye’s report compared Saffron Rose to Shamoon, a highly destructive espionage campaign that targeted the Saudi Arabian oil company Saudi Aramco in August 2012. The Shamoon spyware gathered company data from infected computers, then disabled them by overwriting their master boot records, which PCs need to start up. Some experts suspected Shamoon came from Iran, but nothing has been proven.

The relationship between Ajax Security Team and the Iranian government is unclear, but FireEye said that Saffron Rose is proof that Iran’s online capabilities are becoming more sophisticated.

“There is increasing evidence to suggest that the hacker community in Iran is engaged in a transition from politically motivated defacements and denial-of-service attacks to cyberespionage activities,” its report concluded.

As Iran continues unchecked, it is important to know what else Iran is doing.

Washington-based analysts say Iran has pressed ahead with operations at a military base suspected to have hosted nuclear weapon-related experiments.

An April 25 satellite image of Iran’s Parchin installation suggests the nation, since January, has moved “possible building material and debris” near a building that the International Atomic Energy Agency has sought unsuccessfully for more than two years to visit, according to a Monday assessment by the Institute for Science and International Security. The U.N. nuclear watchdog believes the structure may once have been capable of hosting explosion tests relevant to nuclear-arms development.

“Two trucks or containers have been removed from the area surrounding the suspected high-explosives test building, while a larger object, possibly a truck or large container, appears slightly north of it,” ISIS analysts David Albright and Serena Kelleher-Vergantini said in their report.

Iran, which insists that its atomic ambitions are strictly peaceful, began altering the Parchin facility weeks after IAEA officials began seeking access to the location, the independent experts said.

The nation last year undertook a months-long pause in activities at the site, but a January image analysis revealed an apparent resumption of operations there, the analysis says.

This week’s findings came as Iran launched a new round of multilateral talks aimed at defusing international fears over Tehran’s suspected nuclear-arms aspirations.

“By continuing to modify the site and denying the IAEA access, Iran is reducing the chances of reaching a comprehensive solution by the initial deadline of July 20,” when an interim nuclear agreement with major powers is scheduled to expire, the ISIS report says.

Certain specialists have questioned the U.N. agency’s rationale for pressing to visit the Parchin compound. The evidence prompting those requests — intelligence gathered and furnished to the agency by IAEA member governments — remains confidential.

Hillary and Kerry, Stewards of Soros Policy

Posted on May 18, 2014May 18, 2014 by Denise Simon

Money buys influence and Soros has both. While much has been written and exposed on George Soros, at the very top U.S. leadership follows the Soros edict, follow my playbook and you will be rewarded.

Hillary Clinton, Barack Obama and John Kerry have all left a wake of destruction globally as they have been bought by George Soros. Most recently, matters relating to Israel, Russia and the European Union appear to defy logic, when upon a closer look, Soros is at the core of policy.

Quietly, last week, John Kerry welcomed and introduced George Soros at a conference held at the George C. Marshall Center to discuss matters on civil society. When Soros speaks, leadership listens and on the subject of civil society, Soros is dictating society according to his own objectives. None of those objectives are in keeping with America’s best interests. Obama, Hillary and Kerry are complete acolytes of Soros and obey his commands.

U.S. Secretary of State John Kerry will introduce liberal megadonor George Soros at an open forum on Tuesday, the latest evidence of the billionaire using his political connections to benefit his investments and foreign policy goals, critics say.

Kerry will introduce Soros at the 1:30 p.m. forum on May 13 at the George C. Marshall Center in Washington, D.C., according to a State Department event notice.

Soros will discuss “strengthening civil society, democracy and the world economy” with Assistant Secretary for Public Affairs Douglas Frantz following Kerry’s introduction.

Soros, a New York City hedge fund manager who amassed great wealth through his company Soros Fund Management, has used his foundation network—known as the Open Society Foundations (OSF)—to dispense more than $11 billion to groups abroad as well as numerous left-leaning U.S. groups in the last three decades.

He is perhaps the Democratic Party’s most famous donor, contributing almost $24 million to advocacy groups that supported Kerry’s failed presidential bid in 2004, according to the Center for Responsive Politics. He also donated $1 million to the Priorities USA Action Super PAC that helped reelect President Barack Obama in 2012.

Critics say Soros leverages his political connections to increase the returns on his investments.

While Soros has increased his multi-million dollar investments in both U.S. and foreign companies that extract shale oil and gas, the Obama administration has championed natural gas as a less carbon-intensive bridge fuel toward a “clean-energy future.” The administration’s proposal to offer incentives to companies that use trucks powered by natural gas would benefit Westport Innovations, a company that converts diesel engines for natural gas use and is partially owned by Soros’ hedge fund.

Soros’ political advocacy also tends to blend with his investments. He proposed in 2009 that developed countries create a “green fund” to combat climate change in developing countries by directing billions from the International Monetary Fund (IMF) toward forestry, land-use, and agricultural projects. Soros’ fund controls more than a $200 million stake in Adecoagro, a Luxembourg-based company that owns hundreds of thousands of acres of farmland in South America and would benefit from the IMF cash infusion.

Soros told the New Yorker in a 2004 interview that “there are occasionally symbiotic moments between political and business interests” that occur during his efforts to influence American policy.

Michael Rubin, resident scholar at the American Enterprise Institute (AEI) and former Pentagon adviser in the George W. Bush administration, said in an email that he hopes “Kerry will take a long shower after the event” because hosting Soros is the “diplomatic equivalent of prostitution.”

Rubin said the optics of the event are “horrible” given Soros’ longstanding ties to the administration and his past record of marrying policy advocacy with business.

“If Kerry wants to sponsor a well-deserving guest at a State Department ‘open forum,’ why not someone like Malala Yousefzai, the young school girl whom the Taliban tried to murder?” he said. “Our diplomats could learn a thing or two about moral clarity from her; they certainly won’t from Soros.”

State Department deputy spokeswoman Marie Harf told the Washington Free Beacon that criticisms of Soros’ appearance at the event are “wholly ridiculous and have no basis in fact whatsoever.”

“This is a regular secretary’s open forum event intended to inform and educate department employees,” Harf said in an email. “George Soros was invited to discuss his views on support of civil society.”

Harf noted that the forum has hosted “guests from diverse points of view” in the past, including Chairman of the Joint Chiefs Gen. Martin Dempsey, General Electric CEO Jeffrey Immelt, and Lockheed Martin CEO Marillyn Hewson.

Soros’ actions abroad have also conflicted with traditional U.S. foreign policy stances, raising questions about his appearance at a State Department-sponsored forum.

The OSF have financially supported groups that support boycott, divestment, and sanctions (BDS) campaigns against Israel and called it an “apartheid state,” according to a report last May by NGO Monitor.

The OSF network finances groups such as the Palestinian Center for Human Rights, a Gaza-based organization that regularly accuses Israel of being an “apartheid state” and refers to terror attacks on Israeli civilians as “resistance.”

Kerry was widely criticized last month after warning that Israel could become “an apartheid state” if it failed to reach a two-state solution with the Palestinians.

Additionally, Soros has financed opposition groups and media in countries such as Azerbaijan and Armenia, two countries that are still locked in a violent and decades-old territorial dispute over the Nagorno-Karabakh region. Soros’ involvement there prompted leaders to express concerns that he could further stoke tensions and contribute to another outbreak of war.

“He pursues his own vision, undisturbed by his effect on other nations or the interests of his own,” wrote Richard Miniter, a contributor to Forbes, in 2011. “It is hard for foreign governments to hold him accountable, and his goals and methods are usually kept secret.”

Soros wrote in his 2006 book, The Age of Fallibility: The Consequences of the War on Terror, that “the main obstacle to a stable and just world order is the United States.”

Soros has an estimated net worth of $20 billion—much of it made through his controversial investment philosophy of making massive, highly leveraged bets on the direction of global financial markets. His involvement in the East Asian financial crisis of the late 1990s drew sharp rebukes from leaders in the region.

He is a major donor to the liberal Center for American Progress and an architect of the Democracy Alliance, a shadowy organization that disburses millions to left-leaning groups but does not disclose its donors.

Additionally, Soros has staked out controversial positions on social issues, calling in 2010 for the full legalization of marijuana in the United States.

Soros’ office did not respond to a request for comment.

When it comes to Russia and Putin’s aggressive missions towards Crimea, Ukraine, the Baltic states, George Soros has his hands all over the policy of the United States and the European Union where the International Monetary Fund plays in the background.

The billionaire financier says in its tepid response to Russia’s Crimea land grab, the EU flubbed a key chance to breathe new life into the stale union.

George Soros, one of the world’s leading investors, has warned that the European Union is in danger of falling apart if it fails to confront Vladimir Putin’s naked aggression in Ukraine.

The billionaire financier told The Daily Beast that European governments should have seized on Russia’s land grab in Crimea to breathe new life into a union that is disintegrating and stumbling towards oblivion. Instead, he argued, squabbling European nations have failed to meet the challenge and continued to act in their own narrow self-interest. “Europe was totally unprepared for this crisis and Putin outmaneuvered Europe with no difficulty,” he said.

Soros, who became known as the Man Who Broke the Bank of England after making $1 billion by betting against Europe’s previous financial union, has long insisted that the Euro was being fatally mismanaged. His latest book, published this week, is entitled The Tragedy of the European Union. A loud supporter at the launch of the Euro currency and a cheerleader for a united Europe, Soros has been confounded by what he calls the “nightmare” reality 15 years after its introduction.

Speaking in London, he said it was heart-breaking to see European governments shrug their shoulders at the precise moment the continent was finally witnessing an unprecedented popular uprising in the name of the European Union. “Ukrainians have effectively proved that they are willing to sacrifice their lives to get closer to a Europe that is, at the same time, in the process of disintegration,” he said.

With Putin’s troops in Crimea and a referendum on joining Russia due to be held over the weekend, Soros said there was still time for Europe to act, and reinvigorate the European Union’s withering soul.

“I would argue passionately that [the European Union] should not be a failed experiment and events in Ukraine are a wake-up call to face that issue,” he said. “It’s a challenge, and I hope that Europe will respond to it and actually really rediscover its original mission because that’s what got lost in this distortion that has occurred.”

Angela Merkel, the German chancellor, indicated that Europe was willing to increase pressure on the Kremlin on Thursday during her most emotional and strident speech since the start of the Ukrainian crisis. She said a referendum orchestrated by Crimea’s pro-Russia parliament would be a “catastrophe,” and indicated that the EU was willing to impose travel bans and asset freezes on people and firms accused of helping to violate Ukraine’s territorial integrity as soon as Monday.

Soros argued that it was more important for Europe to offer positive assistance to the struggling Ukrainian government. “It’s very important to respond and respond the right way, which is not necessarily to impose sanctions on Russia, but to actually help Ukraine financially, and also with technical assistance—something like a European Marshall Plan for Ukraine—that would be the right response,” he said.

In his new book, which asks “Is it too late to save the European Union?” Soros argues that Putin’s attempt to build a new Eastern bloc in Ukraine and beyond could eventually jolt Europe back to life. “We have just witnessed a dramatic test of strength between Russia and the European Union. Russia came out ahead,” he said. “Russia has benefited from the fact that Europe is disunited. But now that Russia is emerging as a threat to Europe, it may once again become a force that brings Europe closer together. I pin my hopes on Chancellor Merkel … one must never give up hope.”

He is hardly holding his breath, however. Soros blames the Germans for eroding Europe’s fragile union by enforcing policies of austerity and allowing southern European nations to build up debts they will never be able to repay. He accused Berlin of doing “just enough” to keep the Euro afloat: “This confirms my worst fears. It’s the nightmare I’ve been talking about and there is little chance we’ll wake up soon.”

Germany’s economic strength makes it the Eurozone’s driving force—Britain is not part of the currency union—but the nation’s history has turned it into a reluctant leader. “Germany has emerged as the imperial power, the hegemon of Europe, but the German public does not want to be in that position exactly because of the painful memory of Hitler. It is in denial and is unwilling to live up to the responsibilities,” he said.

Despite its unwillingness to assume a strong leadership role, Soros argues that Berlin’s fiscal rigidity has created a two-tier Europe where debtor countries are at a permanent disadvantage. If that does not change, he said: “We will have a Europe in which Germany is seen not as a leader but as an oppressor and exploiter. It will not be loved and admired by the rest of Europe it will be hated and resisted.”

That resistance has already begun in a swathe of countries where popular anti-European sentiment has been seen on the street and at the ballot box. Europe-wide elections in May are expected to send a record number of politicians to Brussels who are hostile to the very institutions they will be populating. In Britain, the governing Conservative Party has promised a referendum on leaving the European Union altogether. “That would be a big step forward in the disintegration of the European Union,” Soros said. “Britain’s absence would greatly diminish the weight of the EU in the world … The world badly needs Europe’s soft power.”

Geithner, When the Lies Began

Posted on May 13, 2014May 13, 2014 by Denise Simon

Alright, let us review.

1. Geithner took control of $350 Billion to keep America from the financial abyss.

2. Geithner’s father was the chief manager of the Ford Foundation’s Microfinance in Indonesia system that was developed by Stanley Ann Dunham, Barack Obama’s mother.

3. Larry Summers was Tim Geithner’s mentor.

4. Geithner was a member of the Council of Foreign Relations and Policy Director for the International Monetary Fund.

5. Geithner came to the financial rescue of Bear Sterns, Goldman Sachs and AIG but left Lehman Brothers to die on the vine.

6. Geithner also did not pay $35,000 personally owed to Social Security and Medicare through payroll taxes while working for the IMF. Only through an audit did he get caught and paid up.

7. If Geithner was so experienced in the matter of global and domestic banking and financial systems, then he failed at never predicting the 2008 global financial crisis.

8. Geithner worked at the Bank of International Settlements and is a member of the Bilderberg Group.

So now, Geithner has authored a book titled Stress Test and the text reveals he did not enjoy his time at the Federal Reserve or much less the constant edits to lie about many issues at the behest of the White House, especially Dan Phieffer. This is telling as the lies from the White House began from day one and pressure was applied to all cabinet secretaries to do the same.

Hat tip to Deborah Soloman at the Wall Street Journal.

Former Treasury Secretary Timothy Geithner, whose time in Washington was often colored by accusations he was too close to Wall Street and did little to help Main Street, uses his 538-page book “Stress Test” to largely defend and explain the decisions he made during the financial crisis.

“The inconvenient truth of financial-crisis response is that the actions that feel right are often wrong,” he writes. Mr. Geithner, who was tapped by President Barack Obama to lead the Treasury and before that was president of the Federal Reserve Bank of New York, says he was right to avoid the populist push for blood, including refusing to upend bonus payments to employees of American International Group Inc.

He also acknowledges a tepid response to the housing crisis, saying “I wish we had expanded our housing programs earlier, to relieve more pain for homeowners.”

Here are five takeaways from Mr. Geithner’s book:

Obama’s Financial Rescue: Mr. Geithner reveals dissension between himself and another top member of the Obama administration, Lawrence Summers, saying the two initially disagreed about the best approach to fixing struggling banks.

Mr. Summers wanted to take a more forceful approach and essentially nationalize “zombie” banks that were proved to be insolvent, Mr. Geithner writes, while he wanted to take a more wait-and-see approach by forcing all the banks to undergo “stress tests” that would reveal how much of a capital shortfall they had. Those with a gap that hindered their ability to withstand losses would be required to raise more capital or submit to tough government restrictions to get taxpayer money.

Mr. Geithner writes that while he was away at the G-20 meeting in Europe, Mr. Summers convinced two Treasury officials to make the Summers strategy “sound like a cool hawkish approach that would make the President a populist hero, while ours sounded like an equivocating dovish approach that would make the President seem cowed by banks.”

Mr. Geithner says Mr. Summers “often implied that while the President stood for bold problem solving, I stood for tentative half-measures.” He recounts a meeting in the Oval Office where Mr. Summers described their respective approaches and told Mr. Obama ‘I’m much closer to you, Mr. President’.”

In the end, Mr. Summers’s approach was nixed by former White House Chief of Staff Rahm Emanuel who, upon learning it could cost the government hundreds of billions of dollars, exclaimed “There’s no more f— money!”

Lehman Brothers: Mr. Geithner was widely known as favoring a more forceful approach to Lehman Brothers, the investment bank that ultimately filed for bankruptcy after it was unable to find a buyer or get a government bailout. In his book, he points that out as a source of friction between himself, former Federal Reserve Chairman Ben Bernanke and former Treasury Secretary Henry Paulson.

As Mr. Paulson continued to draw a line in the sand and declare there would be no government bailout of Lehman, Mr. Geithner writes: “I began to worry that he actually meant it.”

Mr. Geithner says the three policymakers “didn’t want to bolster the impression that government handouts were available upon request” but says while that made sense as a bargaining position “I didn’t think it made sense as actual public policy.”

“This was one of the few times during the crisis when there was any distance between Hank and me. There was even some distance between Ben and me.”

AIG: Mr. Geithner’s arguably biggest drubbing came in March 2009, when it was revealed that AIG, the giant insurer that owed its survival to a $182 billion U.S. government lifeline, was going to pay its workers $165 million in bonuses. Mr. Geithner, who helped engineer the rescue of AIG, was caught off guard by the bonuses and says he called Edward Liddy, whom the government had hand-picked to run AIG, and told him “This is going to kill us and you.”

Mr. Geithner says he knew it was going to be a deeply unpopular decision but defended his refusal to undo the bonuses, saying it would have violated a contract and called into question what other types of guarantees the government was willing to abridge.

“I was instinctively skittish about the U.S. government breaking contracts, especially at a time when all sorts of commitments had been called into question. We weren’t Venezuela.”

Mr. Geithner also reveals he was uncomfortable when Mr. Obama suggested Mr. Geithner would try to reclaim some of the money.

Mr. Obama, in public remarks, said Mr. Geithner would “use [our] leverage and pursue every single legal avenue to block these bonuses and make the American taxpayers whole,” he said. “I want everybody to be clear that Secretary Geithner has been on the case.”

Mr. Geithner writes that “we didn’t think we could claw back the bonuses that had already been obligated and even if we could modestly reduce future payouts, raising public expectations seemed unwise.”

He adds: “I didn’t see the need to remind everyone that I was ‘on the case,’ either.”

Dodd-Frank: Mr. Geithner has perhaps his harshest words for members of Congress, suggesting some used the financial overhaul law as a Christmas tree to win points and favors without considering what was best for the financial system.

He recounts a meeting with Sen. Scott Brown, then a Massachusetts Republican, saying that he made it clear in a meeting he “liked the idea of financial reform and expected to be with us. But without any irony or self-consciousness he said he needed to protect two financial institutions in Massachusetts from the Volcker Rule’s restrictions.”

Mr. Geithner writes that Mr. Brown then furrowed his brow, turned to his aide and asked “Which ones are they, again?”

Housing: Mr. Geithner acknowledges the slow pace of help for homeowners, who were supposed to be among the first on “Main Street” to receive attention in the new administration. “One of every eight mortgages was in foreclosure or default” and yet the administration’s programs “were off to an embarrassingly slow start.”

Mr. Geithner says the lack of help frustrated Democrats who were already uneasy about the amount of assistance the government was giving to large banks. “I held a bunch of meetings with angry Democrats who derisively questioned the depth of our commitment to help homeowners.”

Mr. Geithner recounts how, after a dinner with “disgruntled progressive leaders,” his chief of staff, Mark Patterson, told Mr. Geithner he “needed to stop trying to explain all the barriers that made it harder to do more on housing.” John Podesta one of the dinner guests and a former White House chief of staff, had told Mr. Patterson that Mr. Geithner was “only making it worse.”

Mr. Obama, too, was frustrated and Mr. Geithner says he “kept urging us to think big, to think bold, to consider anything that would help homeowners in distress.”

But Mr. Geithner says the biggest problem was a severely weak economy, which had rendered so many mortgages underwater—worth less than their mortgages—that there was little the government could do to help people build up equity.

The administration fiddled with the homeowner programs several times, but ultimately didn’t come up with a bigger foreclosure-mitigation effort.

The Communist Nextdoor

Posted on May 9, 2014May 9, 2014 by Denise Simon

Alright, this is going to be a long read, however, the work is presented here for your use and you DO need to spend some time on this.

First it should be known there is a ‘One World Government and a One World Legal System’. Once we admit this, all other items listed below will fall into place. Don’t shoot the messenger.

1. If you don’t think there is no Communist Party influence is government today or one that may live next door, then it is suggested you click here.

2. If you don’t think there are Socialists in government today and influencing earmarks, votes and law, then click here.

3. For the younger generation that does not know about McCarthy or for those who were subjected to revisionist history, this is a good time to click here.

But as a sample of what you need to know, read on….

[1] . . . As we celebrate the birth of this man who with his whole heart and soul hated war, I

would like to be able to speak of peace in our time, of war being outlawed, and of world-wide disarmament. These would be truly appropriate things to be able to mention as we celebrate the birthday of Abraham Lincoln.

[2] Five years after a world war has been won, men’s hearts should anticipate a long peace, and men’s minds should be free from the heavy weight that comes with war. But this is not such a period—for this is not a period of peace. This is a time of the “cold war.” This is a time when all of the world is split into two vast, increasingly hostile armed camps—a time of a great armaments race.

[3] . . . There is still a hope for peace if we finally decide that no longer can we safely blind our eyes and close our ears to those facts which are shaping up more and more clearly. And that is that we are now engaged in a show-down fight—not the usual war between nations for land areas or other material gains, but a war between two diametrically opposed ideologies.

[4] . . . The great difference between our western Christian world and the atheistic Communist world is not political, ladies and gentlemen, it is moral. There are other differences, of course, but those could be reconciled. For instance, the Marxian idea of confiscation the land and factories and running the entire economy as a single enterprise is momentous. Likewise, Lenin’s invention of the one-party police state as a way to make Marx’s idea work is hardly less momentous.

[5] . . . With only those differences, however, the East and the West could most certainly still live in peace.

[6] The real, basic difference, however, lies in the religion of immoralism—invented by Marx, preached feverishly by Lenin, and carried to unimaginable extremes by Stalin. This religion of immoralism, if the Red half of the world wins—and well it may—this religion of immoralism will more deeply wound and damage mankind than any conceivable economic or political system.

[7] Karl Marx dismissed God as a hoax, and Lenin and Stalin have added in clear-cut, unmistakable language their resolve that no nation, no people who believe in a God, can exist side by side with their communistic state.

[8] . . . While Lincoln was a relatively young man in his late thirties, Karl Marx boasted that the Communist specter was haunting Europe. Since that time, hundreds of millions of people and vast areas of the world have fallen under Communist domination. Today, less than 100 years after Lincoln’s death, Stalin brags that this Communist specter is not only haunting the world, but is about to completely subjugate it.

[9] . . . Can there be anyone who fails to realize that the Communist world has said, “The time is now”—that this is the time for the show-down between the democratic Christian world and the Communist atheistic world?

[10] Unless we face this fact, we shall pay the price that must be paid by those who wait too

long.

[11] Six years ago, at the time of the first conference to map out the peace—Dumbarton Oaks— there was within the Soviet orbit 180,000,000 people. Lined up on the antitotalitarian side there were in the world at that time roughly 1,625,000,000 people…in less than 6 years the odds have changed from 9 to 1 in our favor to 8 to 5 against us. This indicates the swiftness of the tempo of Communist victories and American defeats in the cold war. As one of our outstanding historical figures once said, “When a great democracy is destroyed, it will not be because of enemies from without, but rather because of enemies from within.”

[12] The truth of this statement is becoming terrifyingly clear as we see this country each day losing on every front.

[13] The reason why we find ourselves in a position of impotency is not because our only

powerful enemy has sent men to invade our shores, but rather because of the traitorous actions of those who have been treated so well by this Nation. It has not been the less fortunate or members of minority groups who have been selling this Nation out, but rather those who have had all the benefits that the wealthiest nation on earth has had to offer—the finest homes, the finest college education, and the finest jobs in Government we can give.

[14] This is glaringly true in the State Department. There the bright young men who are born with silver spoons in their mouths are the ones who have been worst.

[15] . . . Now, let’s see what happens when individuals with Communist connections are forced out of the State Department. Gustave Duran, who was labeled as (I quote) “a notorious international Communist,” was made assistant to the Assistant Secretary of State in charge of Latin American affairs. He was taken into the State Department from his job as a lieutenant colonel in the Communist International Brigade. Finally, after intense congressional pressure and criticism, he resigned in 1946 from the State Department—and, ladies and gentlemen, where do you think he is now? He took over a high-salaried job as Chief of Cultural Activities Section in the office of the Assistant Secretary General of the United Nations.

[16] . . . Then there was a Mrs. Mary Jane Kenny, from the Board of Economic Warfare in the State Department, who was named in an FBI report and in a House committee report as a courier for the Communist Party while working for the Government. And where do you think Mrs. Kenny is—she is now an editor in the United Nations Document Bureau.

[17] . . . Another interesting case was that of Julian H. Wadleigh, economist in the Trade Agreements Sections of the State Department for 11 years and was sent to Turkey and Italy and other countries as United States representative. After the statute of limitations had run so he could not be prosecuted for treason, he openly and brazenly not only admitted but proclaimed that he had been a member of the Communist Party * * * that while working for the State Department he stole a vast number of secret documents * * * and furnished these documents to the Russian spy ring of which he was a part.

[18] . . . This, ladies and gentlemen, gives you somewhat of a picture of the type of individuals who have been helping to shape our foreign policy. In my opinion the State Department, which is one of the most important government departments, is thoroughly infested with Communists.

[19] . . . I have in my hand 57 cases of individuals who would appear to be either card carrying members or certainly loyal to the Communist Party, but who nevertheless are still helping to shape our foreign policy.

[20] One thing to remember in discussing the Communists in our Government is that we are not dealing with spies who get 30 pieces of silver to steal the blueprints of a new weapon. We are dealing with a far more sinister type of activity because it permits the enemy to guide and shape our policy.

[21] . . . This brings us down to the case of one Alger Hiss who is important not as an individual any more, but rather because he is so representative of a group in the State Department. It is unnecessary to go over the sordid events showing how he sold out the Nation which had given him so much.

[22] . . . When the Un-American Activities Committee called Alger Hiss to give an accounting, President Truman at once issued a Presidential directive ordering all Government agencies to refuse to turn over any information whatsoever in regard to the Communist activities of any Government employee to a congressional committee.

[23] Incidentally, even after Hiss was convicted—it is interesting to note that the President still labeled the exposé of Hiss as a “red herring.”

[24] . . . Ladies and gentlemen, one of the important reasons for the graft, the corruption, the dishonesty, the disloyalty, the treason in high Government positions—one of the most important reasons why this continues is a lack of moral uprising on the part of the 140,000,000 American people.

[25] . . . However, the morals of our people have not been destroyed. They still exist. This cloak of numbness and apathy has only needed a spark to rekindle them. Happily, this spark has finally been supplied.

[26] As you know, very recently the Secretary of State [Dean Acheson] proclaimed his loyalty to a man [Alger Hiss] guilty of what has always been considered as the most abominable of all crimes—of being a traitor to the people who gave him a position of great trust. The Secretary of State in attempting to justify his continued devotion to the man who sold out the Christian world to the atheistic world, referred to Christ’s Sermon on the Mount as a justification and reason therefor, and the reaction of the American people to this would have made the heart of Abraham Lincoln happy.

[27] When this pompous diplomat in striped pants, with a phony British accent, proclaimed to the American people that Christ on the Mount endorsed communism, high treason, and betrayal of a sacred trust, the blasphemy was so great that it awakened the dormant indignation of the American people.

[28] He has lighted the spark which is resulting in a moral uprising and will end only when the whole sorry mess of twisted, warped thinkers are swept from the national scene so that we may have a new birth of national honesty and decency in Government.

Okay take a breather and step outside for some fresh air as the best is yet to come……

Welcome back, you ready?

Documention below

Congressional Record–Appendix, pp. A34-A35January 10, 1963Current Communist Goals

EXTENSION OF REMARKS OF HON. A. S. HERLONG, JR. OF FLORIDA

IN THE HOUSE OF REPRESENTATIVES

Thursday, January 10, 1963

Mr. HERLONG. Mr. Speaker, Mrs. Patricia Nordman of De Land, Fla., is an ardent and articulate opponent of communism, and until recently published the De Land Courier, which she dedicated to the purpose of alerting the public to the dangers of communism in America.

At Mrs. Nordman’s request, I include in the RECORD, under unanimous consent, the following “Current Communist Goals,” which she identifies as an excerpt from “The Naked Communist,” by Cleon Skousen:

[From “The Naked Communist,” by Cleon Skousen]

CURRENT COMMUNIST GOALS

1. U.S. acceptance of coexistence as the only alternative to atomic war.

2. U.S. willingness to capitulate in preference to engaging in atomic war.

3. Develop the illusion that total disarmament [by] the United States would be a demonstration of moral strength.

4. Permit free trade between all nations regardless of Communist affiliation and regardless of whether or not items could be used for war.

5. Extension of long-term loans to Russia and Soviet satellites.

6. Provide American aid to all nations regardless of Communist domination.

7. Grant recognition of Red China. Admission of Red China to the U.N.

8. Set up East and West Germany as separate states in spite of Khrushchev’s promise in 1955 to settle the German question by free elections under supervision of the U.N.

9. Prolong the conferences to ban atomic tests because the United States has agreed to suspend tests as long as negotiations are in progress.

10. Allow all Soviet satellites individual representation in the U.N.

11. Promote the U.N. as the only hope for mankind. If its charter is rewritten, demand that it be set up as a one-world government with its own independent armed forces. (Some Communist leaders believe the world can be taken over as easily by the U.N. as by Moscow. Sometimes these two centers compete with each other as they are now doing in the Congo.)

12. Resist any attempt to outlaw the Communist Party.

13. Do away with all loyalty oaths.

14. Continue giving Russia access to the U.S. Patent Office.

15. Capture one or both of the political parties in the United States.

16. Use technical decisions of the courts to weaken basic American institutions by claiming their activities violate civil rights.

17. Get control of the schools. Use them as transmission belts for socialism and current Communist propaganda. Soften the curriculum. Get control of teachers’ associations. Put the party line in textbooks.

18. Gain control of all student newspapers.

19. Use student riots to foment public protests against programs or organizations which are under Communist attack.

20. Infiltrate the press. Get control of book-review assignments, editorial writing, policymaking positions.

21. Gain control of key positions in radio, TV, and motion pictures.

22. Continue discrediting American culture by degrading all forms of artistic expression. An American Communist cell was told to “eliminate all good sculpture from parks and buildings, substitute shapeless, awkward and meaningless forms.”

23. Control art critics and directors of art museums. “Our plan is to promote ugliness, repulsive, meaningless art.”

24. Eliminate all laws governing obscenity by calling them “censorship” and a violation of free speech and free press.

25. Break down cultural standards of morality by promoting pornography and obscenity in books, magazines, motion pictures, radio, and TV.

26. Present homosexuality, degeneracy and promiscuity as “normal, natural, healthy.”

27. Infiltrate the churches and replace revealed religion with “social” religion. Discredit the Bible and emphasize the need for intellectual maturity which does not need a “religious crutch.”

28. Eliminate prayer or any phase of religious expression in the schools on the ground that it violates the principle of “separation of church and state.”

29. Discredit the American Constitution by calling it inadequate, old-fashioned, out of step with modern needs, a hindrance to cooperation between nations on a worldwide basis.

30. Discredit the American Founding Fathers. Present them as selfish aristocrats who had no concern for the “common man.”

31. Belittle all forms of American culture and discourage the teaching of American history on the ground that it was only a minor part of the “big picture.” Give more emphasis to Russian history since the Communists took over.

32. Support any socialist movement to give centralized control over any part of the culture–education, social agencies, welfare programs, mental health clinics, etc.

33. Eliminate all laws or procedures which interfere with the operation of the Communist apparatus.

34. Eliminate the House Committee on Un-American Activities.

35. Discredit and eventually dismantle the FBI.

36. Infiltrate and gain control of more unions.

37. Infiltrate and gain control of big business.

38. Transfer some of the powers of arrest from the police to social agencies. Treat all behavioral problems as psychiatric disorders which no one but psychiatrists can understand [or treat].

39. Dominate the psychiatric profession and use mental health laws as a means of gaining coercive control over those who oppose Communist goals.

40. Discredit the family as an institution. Encourage promiscuity and easy divorce.

41. Emphasize the need to raise children away from the negative influence of parents. Attribute prejudices, mental blocks and retarding of children to suppressive influence of parents.

42. Create the impression that violence and insurrection are legitimate aspects of the American tradition; that students and special-interest groups should rise up and use [“]united force[“] to solve economic, political or social problems.

43. Overthrow all colonial governments before native populations are ready for self-government.

44. Internationalize the Panama Canal.

45. Repeal the Connally reservation so the United States cannot prevent the World Court from seizing jurisdiction [over domestic problems. Give the World Court jurisdiction] over nations and individuals alike.

It is any wonder know that inside the State Department for the past 50+ years it is almost impossible to really know what is going on much less how much money is being thrown around without ANY accountability?

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