Wednesday, March 25, 2009

Tapping AIG Furor, Regulators Seek Power to Seize Nonbanks

[Treasury Secretary Timothy Geithner, left, talks with Federal Reserve Chairman Ben Bernanke on Capitol Hill Tuesday.] Associated Press

Treasury Secretary Timothy Geithner, left, talks with Fed Chairman Ben Bernanke before the start of a House hearing on AIG.

The government's top financial regulators are channeling widespread outrage over retention bonuses at American International Group Inc. to quickly win authority they have sought for much of the past year to seize nonbank companies and freeze their contracts.

The House Financial Services Committee plans to vote as early as next week on legislation that would give the government that authority. Federal officials already have such power over banks. The Obama administration is pushing for fast action on the issue, even before Congress tackles a broader overhaul of financial regulation.

Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke, in congressional testimony Tuesday, said the lack of authority to seize AIG -- the way the Federal Deposit Insurance Corp. places failing banks into so-called receivership -- forced the government into the position of owning almost 80% of the insurance giant, and serving as its major lender, while lacking the power to stop multimillion-dollar bonus contracts signed before the government intervention.

"If a federal agency had had such tools on Sept. 16, they could have been used to put AIG into conservatorship or receivership, unwind it slowly, protect policyholders, and impose haircuts on creditors and counterparties as appropriate," Mr. Bernanke said.

While the power seems likely to be granted by Congress, it's unclear which wing of the government would be given the authority. Mr. Geithner proposed that any emergency action be based on a determination by the Treasury secretary along with the Federal Reserve and the federal regulator overseeing the company.

He said that in addition to the power to seize a company, the proposed authority would give the government rights to sell or transfer assets or liabilities of the firm and renegotiate contracts, including those with employees.

Rep. Barney Frank (D., Mass.), chairman of the House Financial Services Committee, declined to say whether the power would be provided to the FDIC, the Treasury or some combination of the two. Speaking to reporters after Tuesday's hearing, Mr. Frank said that he had discussed the issue with President Barack Obama and that the committee would vote on a bill either next week or the following week. But the legislation would still be at least a few weeks away from enactment, because it must go through the Senate as well.

Several lawmakers expressed their displeasure with the AIG intervention during Tuesday's hearing. But the outrage that consumed Capitol Hill -- and much of America -- for the past week appeared to have softened.

Mr. Geithner and Mr. Bernanke have faced a storm of criticism since the disclosure 10 days ago that AIG had paid $165 million in bonuses to employees in the same unit that triggered many of its problems. But they blunted much of the anger by focusing their testimony on the limits to their authority and the regulatory holes that created the problems around AIG.

The two officials, joined by Federal Reserve Bank of New York President William Dudley, explained that they sought to block the bonuses but were advised of the limitations to breaking the contracts.

Mr. Bernanke said that upon learning of the payments, he asked that they be stopped. Informed that they were mandated by contracts, Mr. Bernanke said he "then asked that suit be filed to prevent the payments." But legal staff counseled against that because laws in Connecticut, where the AIG unit is based, could result in the "perverse effect" of doubling or tripling the payouts to those employees through damages.

Still, Messrs. Bernanke and Geithner on Tuesday faced continued criticism over other decisions on AIG and the wider government financial-rescue efforts. Mr. Bernanke was asked repeatedly about the tens of billions of dollars AIG has paid out to major banks, including foreign institutions, using government money. He maintained that AIG needed to meet its obligations to prevent a default that he said would cause "chaos in financial markets." He also noted that European governments have bailed out their banks without distinguishing between European and American creditors.

Quiet Muslim-Only Town in N.Y. Founded by Alleged Terrorist

By Rick Leventhal

HANCOCK, N.Y. — If you didn't know where to look, you'd probably never find Islamberg, a private Muslim community in the woods of the western Catskills, 150 miles northwest of New York City.

The town, sitting on a quiet dirt road past a gate marked with No Trespassing signs, is home to an estimated 100 residents. There are small houses and other buildings visible from the outside, but it is what can't be seen from beyond the gate that has some watchers worried.

Click here for video.

Islamberg was founded in 1980 by Sheikh Syed Mubarik Ali Shah Gilani, a Pakistani cleric who purchased a 70-acre plot and invited followers, mostly Muslim converts living in New York City, to settle there.

The town has its own mosque, grocery store and schoolhouse. It also reportedly has a firing range where residents take regular target practice. Gilani established similar rural enclaves across the country — at least six, including the Red House community in southern Virginia — though some believe there are dozens of them, all operating under the umbrella of the "Muslims of the Americas" group founded by Gilani.

Federal authorities say Gilani was also one of the founders of Jamaat al-Fuqra, a terrorist organization believed responsible for dozens of bombings and murders across the U.S. and abroad. The group was linked to the planning of the 1993 World Trade Center bombing, and 10 years earlier a member was arrested and later convicted for bombing a hotel in Portland, Ore.

Shoe bomber Richard Reid has been linked to the group, along with convicted D.C. sniper John Allen Muhammad. But it is Sheikh Gilani who creates the most controversy and concern.

Gilani has told his followers that "Zionist plotters" plan to rule the world, and he encourates them to leave America's cities and avoid the "decadence of a godless society." Gilani is the man American reporter Daniel Pearl was trying to interview in Pakistan when he was kidnapped and beheaded. The Sheikh was taken into custody and later released by Pakistani authorities; he denies any involvement in Pearl's murder.

Video

Gilani also denies any connection to Jamaat al-Fuqra, as do residents of the MOA compounds, who say the "terrorist" group doesn't exist and was created by enemies of Islam hoping to destroy their communities. Members also deny sending a portion of their earnings to the Sheikh, but a former resident told FOX News that 10 to 30 percent of their income is regularly delivered to Gilani in the form of cash donations.

FOX News attempted to visit Islamberg after earlier efforts to set up on-camera interviews were rebuffed. A spokesman said by phone that residents typically shy away from interviews since they worry their words will be manipulated and turned against them. He accused FOX News of misrepresenting the group and suggested covering an Islamic festival in Binghamton later in the month to celebrate the birthday of the prophet Muhammad. Then he hung up.

Some residents, collecting their mail outside the compound or stopping for a short spell at its edge, spoke briefly of life on the inside. One woman told FOX News she was happy to be "away from the city and away from the drugs and crap that's going on," raising her family safely in Islamberg.

Another resident drove out, dressed in a cap and robe, video camera in hand, and moved so close to a female producer that he actually made contact. The resident kept his camera rolling for the next 15 minutes without saying a word, but he finally began to answer questions.

The man said residents get along with their neighbors and don't trust the media, which he said paints their town as a guarded compound "where no one can enter and exit."

"It's a village," he insisted, "with people of all backgrounds, cultures and races."

He said he was a 20-year veteran of the Air Force, still active in the reserves, who grew up in Brooklyn and converted to Islam while in the service.

"I got awards for 'bridging the gap' between American and Saudi soldiers," he said, noting that he had helped process the bodies when 19 U.S. servicemen were killed in a 1996 terror attack in Saudi Arabia. He said there were many veterans in Islamberg, including one with a Purple Heart citation from Vietnam.

The man denied the existence of Jamat al-Fuqra, and at first denied giving a share of his earnings to Sheik Gilani, but he later admitted that "all churches have tithes."

During the interview, two state police cars roared up, as one of the residents had called the cops, a common occurrence when reporters show up at the gate.

Local police told FOX News there has been plenty of rumor and innuendo over the years but very little trouble. The FBI's Albany Division said the agency has an open discourse with the residents of Islamberg. They've visited the compound but won't discuss whether there are any ongoing investigations.

That has not dispelled the worries of some watchdogs. Robert Spencer, director of Jihad Watch, says the group is making a concerted public relations effort to present a benign face and hide its violent past.

"I think we need to be very much on guard about every member of these compounds," he said. Though Spencer admits there is nothing inherently wrong with living in isolation, he stressed that "they're not at all open to visitors, they're not at all open to scrutiny and there's an abundance of evidence of sinister goings-on."

Spencer offered no evidence to back his misgivings, but suggested political correctness may be hampering investigations. He says the group's connection to Sheikh Gilani is reason enough to be concerned that they're planning for "something on a larger scale and longer term," to "further the causes of the global Islamic Jihad", something MOA has repeatedly denied and scoffed at in the past.

Residents call it a peaceful place to raise a family away from the pressures of the city, and maintain that the group is woefully misunderstood.

"I used to work customs when I was overseas and I come here and get harassed at the grocery store and the bank. A clerk claimed my military ID was invalid because I'm Muslim," the resident told FOX News.

Critics, lacking an eye into the cloistered community, still wonder whether it's something more.

Militant Video being forwarded. Author of comments unknown.

(Compiler's note: Must read - see. My friend and fellow Marine forwarded the below comment and link to me. The video is about 9 minutes long and is a speech by a Kuwaiti about anthrax and terrorism in general. The naïveté of some of our ‘leaders’ is appalling!)

Department of Homeland Security Secretary Janet Napolitano has a new word for terrorism - "man-caused disasters". Not only that, but in her March 16th, 2009 interview with the German press, she states that her job is to help prepare for risks from "man-caused disasters". Now watch the video!! I doubt the Secretary has watched it.

http://www.youtube.com/watch?v=M32M-2B2mz8


Tuesday, March 24, 2009

Millions take to streets in economic protests

Mass demonstrations likely to hit U.S. this summer

Editor's Note: The following report is excerpted from Jerome Corsi's Red Alert.

France's trade unions staged a national strike protesting the economic downturn and causing a one-day stoppage in rail, air and local transport throughout the country on Thursday. Similar protests in the United States this summer are becoming increasingly likely, as tent cities for the homeless are springing up in dozens of U.S. cities, Jerome Corsi's Red Alert reports.

More than 1 million people took to the streets throughout France Thursday as a national poll showed 74 percent of the French supported the protest.

This followed a one-day national strike in January that sent hundreds of thousands of French workers to the streets, protesting job cuts and demanding higher welfare payments to cushion the impact of the economic crisis.

The mass protests in France are evidence of the increasing economic distress being felt in the EU from the global economic downturn, Corsi wrote.

The French gross domestic product, or GDP, is expected to fall 1.9 percent this year, compared with drops of 2.8 percent in Great Britain and 2.5 percent in Germany, according to the Economist.

Meanwhile, protests in the U.S. are becoming more likely.

In Las Vegas, the Las Vegas Review-Journal reports the City Council is considering a proposal to designate a piece of vacant land for the homeless as an alternative to the impromptu tent city that has persisted on Foremaster Lane between Main Street and Las Vegas Boulevard North, despite repeated attempts by city officials to sweep the area clean.

In Sacramento, Calif., Mayor Kevin Johnson has negotiated with a coalition of property owners to move some 100 to 200 homeless living in a tent city camp north of downtown into apartments, shelters and other structures, according to the Sacramento Bee.

The Milwaukee Journal Sentinel reported homeless have begun spending their days in the state capitol in Madison, moving into the basement for warmth, from 8 a.m. to 6 p.m., when they are required to leave.

Red Alert expects that by this summer, street protests will come to the United States, as the U.S. middle class increasingly becomes squeezed by fear of losing jobs and homes.

"The Obama administration would be well advised to realize that President Obama's appearance on Jay Leno's late-night television show may not demonstrate the level of dedicated leadership or seriousness the American public expects of a president when the country is heading toward the most severe economic downturn since the Great Depression of the 1930s," Corsi wrote. "The American public would also be well advised to take a close look at French bailouts before becoming too enthusiastic about supporting more Obama administration bailouts."

Red Alert's author, whose books "The Obama Nation" and "Unfit for Command" have topped the New York Times best-sellers list, received his Ph.D. from Harvard University in political science in 1972. For nearly 25 years, beginning in 1981, he worked with banks throughout the U.S. and around the world to develop financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. In this career, Corsi developed three different third-party financial services marketing firms that reached gross sales levels of $1 billion in annuities and equal volume in mutual funds. In 1999, he began developing Internet-based financial marketing firms, also adapted to work in conjunction with banks.

In his 25-year financial services career, Corsi has been a noted financial services speaker and writer, publishing three books and numerous articles in professional financial services journals and magazines.

For more information on spreading economic protests and for financial guidance during difficult times, read Jerome Corsi's Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, "The Obama Nation."

Wyoming: Don't mess with U.S. Constitution

By Bob Unruh

The state of Wyoming has adopted a resolution to inform Washington bureaucrats and bureaucracies of its opposition to any plans to hold a Constitutional Convention

that would recommend changes or alterations to the nation's founding document.

House Enrolled Joint Resolution 3 was signed recently by Democratic Gov. Dave Freudenthal.

The Wyoming Family Coalition said the measure, sponsored by state Rep. Bob Brechtel, R-Casper, is intended to announce the state's opposition to "any attempts to dismantle the United States Constitution which has generally served the country well for nearly 230 years."

WND reported earlier when Wyoming legislators expressed alarm at the idea previous votes in the state would be used to call for such a convention, and also when a public policy organization reported that the nation was only two state votes away from the necessary two-thirds required to call a convention.

Brechtel's resolution repealed all prior requests formally made by Wyoming to call for a Constitutional Convention.

Read how today's America already has rejected the Constitution, and what you can do about it.

"A Constitutional Convention would open a Pandora's Box in this country and would allow debate on our most precious rights," said the WFC's chairman, John Birbari of Lander.

"These rights come from God and are guaranteed by the lawful U.S. Constitution, they include our rights of free speech, the right to assemble, the right to practice the religion of our choice, the right to keep and bear arms and many others," he said.

"Given the current climate in Washington, the people of Wyoming do not want these rights or any of the basic provisions of the Constitution threatened by a Constitutional Convention."

The bill passed both houses with overwhelming majorities and was signed into law by the governor March 11.

"It takes 34 for states calling for a Constitutional Convention in order to have one,” Birbari said. "Until this action by our legislature, 32 states had issued the call including Wyoming. Now, it's down to 31."

Whether a rescission vote would be found valid, however, remains in question. Constitution expert John Eidsmoe, author of the book "Christianity & the Constitution," told WND earlier there isn't a clear constitutional directive on the issue.

A public policy organization recently issued an urgent alert that affirmative votes were needed from only two more states before a Constitutional Convention could be assembled in which "today's corrupt politicians and judges" could formally change the U.S. Constitution's "'problematic' provisions to reflect the philosophical and social mores of our contemporary society."

"Don't for one second doubt that delegates to a Con Con wouldn't revise the First Amendment into a government-controlled privilege, replace the 2nd Amendment with a 'collective' right to self-defense, and abolish the 4th, 5th, and 10th Amendments, and the rest of the Bill of Rights," said the warning from the American Policy Center.

Changes also could include the incorporation of "rights" to abortion and euthanasia, as well as the "separation" of church and state, the group said.

As WND reported, President Obama has expressed the belief that the U.S. Constitution needs to be interpreted through the lens of current events.


The final vote from the 1787 Constitutional Convention

Tom DeWeese, who runs the APC and its education and grassroots work, previously told WND the possibilities stunned him when he discovered lawmakers in Ohio were considering a call for a Constitutional Convention. He explained that 32 other states already have taken a vote, and only one more would be needed to require Congress to name convention delegates who then would have more power than Congress itself. The Ohio vote later was delayed after DeWeese publicized its work.

Eidsmoe, who now is staff counsel for the Foundation for Moral Law, told WND the constitutional requirements for such an event are unclear.

"It leaves a lot of unanswered questions," Eidsmoe told WND. "Ultimately it would have to be resolved by a court, but a court has never considered this."

At the last Constitutional Convention, in 1787, the proposal was to make modifications to the Articles of Confederation, but delegates simply threw them out and wrote a new Constitution, according to historians.

Among other unanswered questions are how officers would be chosen, how delegates would be named and whether it would be open to the public or would allow changes in the Constitution be written behind closed doors, he said.

Chuck Baldwin, presidential candidate for the Constitution Party last year, said the delegates to the 1787 Constitutional Convention were "freedom-loving patriots who had just fought a bloody war for independence and were in no mind to re-enact tyranny upon the land they had just fought to liberate."

"However, can one imagine what would happen if the current bunch of politically correct leftists in Washington, D.C., were to be granted the power to rewrite our Constitution?" Baldwin continued. "It would be the end of the United States of America, and that is no hyperbole."

The effort to establish a convention began about 40 years ago, mostly based on issues such as the desire for a balanced budget amendment to the Constitution.

"Since then, 32 states have issued the call. The total number of states that are required to enact the Con Con is 34," Baldwin wrote. "Simple math reveals that we are only two states short of this disaster. As word of this potential calamity began to surface, the effort stalled with the total states issuing the call stuck at 32.

"With the election of Barack Obama, however, supporters of a Con Con have been emboldened and are now trying to resurrect the momentum. The state that is currently in the crosshairs appears to be Ohio," Baldwin said.

DeWeese wrote in his alert, "In truth no restrictive language from any state can legally limit the scope or outcome of a [Constitutional] Convention! Once a Convention is called Congress determines how the delegates to the Convention are chosen. Once chosen, those Convention delegates possess more power than the U.S. Congress itself."

"DeWeese is right," Baldwin added. "If called, a modern Constitutional Convention could declare the U.S. Constitution to be null and void, and could completely rewrite the document. For example, former U.S. Supreme Court Chief Justice Warren Burger once declared, 'There is no effective way to limit or muzzle the actions of a Constitutional Convention. The Convention could make its own rules and set its own agenda.'"

Melody Barnes, a senior domestic policy adviser to the Obama campaign, has told Fox News Obama's "view is that our society isn't static and the law isn't static as well. That the Constitution is a living and breathing document and that the law and the justices who interpret it have to understand that."

WND also reported Obama believes the Constitution is flawed, because it fails to address wealth redistribution, and he says the Supreme Court should have intervened years ago to accomplish that.

Obama told Chicago's public station WBEZ-FM that "redistributive change" is needed, pointing to what he regarded as a failure of the U.S. Supreme Court under Chief Justice Earl Warren in its rulings on civil rights issues in the 1960s.

The Warren court, he said, failed to "break free from the essential constraints" in the U.S. Constitution and launch a major redistribution of wealth. But Obama, then an Illinois state lawmaker, said the legislative branch of government, rather than the courts, probably was the ideal avenue for accomplishing that goal.

In the 2001 interview, Obama said:

If you look at the victories and failures of the civil rights movement and its litigation strategy in the court, I think where it succeeded was to invest formal rights in previously dispossessed people, so that now I would have the right to vote. I would now be able to sit at the lunch counter and order and as long as I could pay for it I’d be OK

But, the Supreme Court never ventured into the issues of redistribution of wealth, and of more basic issues such as political and economic justice in society. To that extent, as radical as I think people try to characterize the Warren Court, it wasn't that radical. It didn't break free from the essential constraints that were placed by the Founding Fathers in the Constitution, at least as it's been interpreted, and the Warren Court interpreted in the same way, that generally the Constitution is a charter of negative liberties. Says what the states can't do to you. Says what the federal government can't do to you, but doesn't say what the federal government or state government must do on your behalf.

And that hasn't shifted and one of the, I think, tragedies of the civil rights movement was because the civil rights movement became so court-focused I think there was a tendency to lose track of the political and community organizing and activities on the ground that are able to put together the actual coalition of powers through which you bring about redistributive change. In some ways we still suffer from that.

The video is available here:

WND also has reported an associate at a Chicago law firm whose partner served on a finance committee for Obama has advocated simply abandoning the U.S. Constitution's requirement that a president be a "natural born" citizen.

The paper was written in 2006 by Sarah Herlihy, just two years after Obama had won a landslide election in Illinois to the U.S. Senate. Herlihy is listed as an associate at the Chicago firm of Kirkland & Ellis. A partner in the same firm, Bruce I. Ettelson, cites his membership on the finance committees for both Obama and Sen. Richard Durbin on the corporate website.

The article by Herlihy is available online under law review articles from Kent University.

The issue of Obama's own eligibility under the U.S. Constitution's requirements that presidents be "natural born" citizens is the subject of nearly two dozen court cases, including several that have gone to the U.S. Supreme Court.

Herlihy's published paper reveals that the requirement likely was considered in a negative light by organizations linked to Obama in the months before he announced in 2007 his candidacy for the presidency.

"The natural born citizen requirement in Article II of the United States Constitution has been called the 'stupidest provision' in the Constitution, 'undecidedly un-American,' 'blatantly discriminatory,' and the 'Constitution's worst provision,'" Herlihy begins in her introduction to the paper titled, "Amending the Natural Born Citizen Requirement: Globalization as the Impetus and the Obstacle."

Justice, Supremes confirm getting eligibility challenge

By Bob Unruh

The U.S. Supreme Court and the U.S. Justice Department today confirmed that documentation challenging Barack Obama's eligibility to be president has arrived and soon will be evaluated.

Confirmation came from DefendOurFreedoms.us, the foundation through which California attorney

Orly Taitz has been working on a number of cases that raise questions over Obama's birth location, and therefore his qualifications to be president under the Constitution's demand that the office be occupied only by a "natural born" citizen.

According to the blog, Taitz was informed by Karen Thornton of the Department of Justice that all of the case documents and filings have arrived and have been forwarded to the Office of Solicitor General Elena Kagan, including three dossiers and the Quo Warranto case.

"Coincidently, after Dr. Taitz called me with that update, she received another call from Officer Giaccino at the Supreme Court," the posting said. "Officer Giaccino stated both pleadings have been received and being analyzed now."

The report from the Supreme Court also said the documents that Taitz hand-delivered to Chief Justice John Roberts at his appearance at the University of Idaho a little over a week ago also were at the Supreme Court. ....


Obama seeks filter-free news

By

At a time when his Washington honeymoon is turning into a hazing, President Barack Obama and his team are launched on a strategy to sail above the traditional White House press corps by reaching out to liberal commentators, local reporters and ethnic media.

The highest-profile moments in the new approach have been well-noted, such as the president giving an interview to progressive radio host Ed Schultz and Obama calling on a reporter from the liberal-leaning Huffington Post at his first news conference.

But those moves are only part of a much larger strategy aimed at communicating directly with audiences the White House believes are more sympathetic to the president’s agenda — and one in which much of the work is being done by Obama’s top advisers. ....

Obama - U.S. Seeks Expanded Power to Seize Firms

By Binyamin Appelbaum and David Cho

The Obama administration is considering asking Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, according to an administration document.

The government at present has the authority to seize only banks.

Giving the Treasury secretary authority over a broader range of companies would mark a significant shift from the existing model of financial regulation, which relies on independent agencies that are shielded from the political process. The Treasury secretary, a member of the president's Cabinet, would exercise the new powers in consultation with the White House, the Federal Reserve and other regulators, according to the document.

The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury's role, are still in flux.

Treasury Secretary Timothy F. Geithner is set to argue for the new powers at a hearing today on Capitol Hill about the furor over bonuses paid to executives at American International Group, which the government has propped up with about $180 billion in federal aid. Administration officials have said that the proposed authority would have allowed them to seize AIG last fall and wind down its operations at less cost to taxpayers.

The administration's proposal contains two pieces. First, it would empower a government agency to take on the new role of systemic risk regulator with broad oversight of any and all financial firms whose failure could disrupt the broader economy. The Federal Reserve is widely considered to be the leading candidate for this assignment. But some critics warn that this could conflict with the Fed's other responsibilities, particularly its control over monetary policy.

The government also would assume the authority to seize such firms if they totter toward failure.

Besides seizing a company outright, the document states, the Treasury Secretary could use a range of tools to prevent its collapse, such as guaranteeing losses, buying assets or taking a partial ownership stake. Such authority also would allow the government to break contracts, such as the agreements to pay $165 million in bonuses to employees of AIG's most troubled unit.

The Treasury secretary could act only after consulting with the president and getting a recommendation from two-thirds of the Federal Reserve Board, according to the plan.

Geithner plans to lay out the administration's broader strategy for overhauling financial regulation at another hearing on Thursday.

The authority to seize non-bank financial firms has emerged as a priority for the administration after the failure of investment house Lehman Brothers, which was not a traditional bank, and the troubled rescue of AIG.

"We're very late in doing this, but we've got to move quickly to try and do this because, again, it's a necessary thing for any government to have a broader range of tools for dealing with these kinds of things, so you can protect the economy from the kind of risks posed by institutions that get to the point where they're systemic," Geithner said last night at a forum held by the Wall Street Journal.

The powers would parallel the government's existing authority over banks, which are exercised by banking regulatory agencies in conjunction with the Federal Deposit Insurance Corp. Geithner has cited that structure as the model for the government's plans.

Senator Dodd's Wife a Former Director of Bermuda-Based IPC Holdings, an AIG Controlled Company

(Compiler's note: Why am I not surprised here? Here we have an example of taking taxpayer money and making it directly available for your own direct access. Wonder how much of this $$ Dodd is going to give back --- and yes, it is time we remember these people work for us ... for the moment. This seems to me to be worthy of jail time for Mr. Dodd.)

No wonder Senator Christopher Dodd (D-Conn) went wobbly last week when asked about his February amendment ratifying hundreds of millions of dollars in bonuses to executives at insurance giant AIG. Dodd has been one of the company's favorite recipients of campaign contributions. But it turns out that Senator Dodd's wife has also benefited from past connections to AIG as well. bailout

From 2001-2004, Jackie Clegg Dodd served as an "outside" director of IPC Holdings, Ltd., a Bermuda-based company controlled by AIG. ....

Pentagon -- The End of the Global War on Terror

(Compiler's note: It would be even better to identify the enemy somewhere in the mix, or am I just "old Corps?")

By Al Kamen

The end of the Global War on Terror -- or at least the use of that phrase -- has been codified at the Pentagon. Reports that the phrase was being retired have been circulating for some time amongst senior administration officials, and this morning speechwriters and other staff were notified via this e-mail to use "Overseas Contingency Operation" instead.

"Recently, in a LtGen [John] Bergman, USMC, statement for the 25 March [congressional] hearing, OMB required that the following change be made before going to the Hill," Dave Riedel, of the Office of Security Review, wrote in an e-mail.

"OMB says: 'This Administration prefers to avoid using the term "Long War" or "Global War on Terror" [GWOT]. Please use "Overseas Contingency Operation.'"

Riedel asked recipients to "Please pass on to your speech writers and try to catch this change before the statements make it to OMB."

An OMB spokesman took issue with the interpretation of OMB's wishes. "There was no memo, no guidance," said Kenneth Baer. "This is the opinion of a career civil servant."

Referring to the phrase "global war on terror," Baer said, "I have no reason to believe that would be stricken" from Hill testimony.

By way of history, senior Bush administration officials several years ago wanted to stop using the phrase and switch to something many felt might better reflect the realities of the fight against international terrorism.

One leading option was to change the name to GSAVE, or Global Struggle Against Violent Extremism. This was not as catchy an acronym as GWOT, but officials felt it more accurately described the battle.Then-Defense Secretary Donald H. Rumsfeld even used the GSAVE abbreviation publicly.

But, in a White House meeting, President Bush ruled that it was still a war for him, and Rumsfeld and everyone else went back to GWOT.



Monday, March 23, 2009

'Fusion Centers' Expand Criteria to Identify Militia Members

Do you like Ron Paul or oppose abortion? You may be a member of a militia, according to a new report by a government information collection agency.

By Joshua Rhett Miller

If you're an anti-abortion activist, or if you display political paraphernalia supporting a third-party candidate or a certain Republican member of Congress, if you possess subversive literature, you very well might be a member of a domestic paramilitary group.

That's according to "The Modern Militia Movement," a report by the Missouri Information Analysis Center (MIAC), a government collective that identifies the warning signs of potential domestic terrorists for law enforcement communities.

"Due to the current economical and political situation, a lush environment for militia activity has been created," the Feb. 20 report reads. "Unemployment rates are high, as well as costs of living expenses. Additionally, President Elect Barrack [sic] Obama is seen as tight on gun control and many extremists fear that he will enact firearms confiscations."

MIAC is one of 58 so-called "fusion centers" nationwide that were created by the Department of Homeland Security, in part, to collect local intelligence that authorities can use to combat terrorism and related criminal activities. More than $254 million from fiscal years 2004-2007 went to state and local governments to support the fusion centers, according to the DHS Web site.

During a press conference last week in Kansas City, Mo., DHS Secretary Janet Napolitano called fusion centers the "centerpiece of state, local, federal intelligence-sharing" in the future.

"Let us not forget the reason we are here, the reason we have the Department of Homeland Security and the reason we now have fusion centers, which is a relatively new concept, is because we did not have the capacity as a country to connect the dots on isolated bits of intelligence prior to 9/11," Napolitano said, according to a DHS transcript.

"That's why we started this.... Now we know that it's not just the 9/11-type incidents but many, many other types of incidents that we can benefit from having fusion centers that share information and product and analysis upwards and horizontally."

But some say the fusion centers are going too far in whom they identify as potential threats to American security.

People who supported former third-party presidential candidates like Texas Rep. Ron Paul, Chuck Baldwin and former Georgia Rep. Bob Barr are cited in the report, in addition to anti-abortion activists and conspiracy theorists who believe the United States, Mexico and Canada will someday form a North American Union.

"Militia members most commonly associate with 3rd party political groups," the report reads. "It is not uncommon for militia members to display Constitutional Party, Campaign for Liberty or Libertarian material."

Other potential signals of militia involvement, according to the report, are possession of the Gagsden "Don't Tread on Me" flag or the widely available anti-income tax film "America: Freedom to Fascism."

Barr, the 2008 Libertarian Party presidential nominee, told FOXNews.com that he's taking steps to get his name removed from the report, which he said could actually "dilute the effectiveness" of law enforcement agencies.

"It can subject people to unwarranted and inappropriate monitoring by the government," he said. "If I were the governor of Missouri, I'd be concerned that law enforcement agencies are wasting their time and effort on such nonsense."

Barr said his office has received "several dozen" complaints related to the report.

Mary Starrett, communications director for the Constitution Party, said Baldwin, the party's 2008 presidential candidate, was "outraged" that his name was included in the report.

"We were so astounded by it we couldn't believe it was real," Starrett told FOXNews.com. "It's painting such a large number of people with a broad brush in a dangerous light."

Michael German, national security policy counsel for the American Civil Liberties Union, said the report "crosses the line" and shows a disregard for civil liberties.

"It seems to implicate people who are engaging in First Amendment protected activities and suggest that something as innocuous as supporting a political candidate for office would mean that you're harboring some ill-intent," German told FOXNews.com. "It's completely inappropriate."

German, who claims the number of fusion centers nationwide is closer to 70, said the centers present several troubling concerns, including their excessive secrecy, ambiguous lines of authority, the use of data mining and military participation.

"No two are alike," German said. "And these things are expanding rapidly."

But MIAC officials defended their report, saying it's not a basis for officers to take enforcement action.

"These reports sometimes mention groups or individuals who are not the subject of the document, but may be relevant to describing tendencies or trends concerning the subject of the document," MIAC said in a statement.

"For example, a criminal group may use a particular wire service to transfer funds, but the mention of that wire service does not imply that it is part of that group, or a criminal enterprise.

Nor does it imply that all individuals who use that service are engaged in criminal activity."
The statement continues, "We are concerned about the mischaracterizations of a document following its recent unauthorized release and we regret that any citizens were unintentionally offended by the content of the document."

Donny Ferguson, a spokesman for the Libertarian Party, said he was concerned by the report's "poor choice of words," among other things.

"Unfortunately it is so broadly worded it could be interpreted as saying millions of peaceful, law-abiding Americans are involved in dangerous activities. These mistakes happen and we hope Missouri officials will correct the report," Ferguson wrote in an e-mail. "The Libertarian Party promotes the common-sense policies of fiscal responsibility and social tolerance. We are the only party in America who makes opposition to initiating violence a condition of membership."

Bob McCarty, a St. Louis resident who blogged about the MIAC report, said he's afraid he may be targeted, since he's previously sold Ron Paul-related merchandise.

"[The report] described me, so maybe I need to get a gun and build a shack out in the woods," McCarty said facetiously. "It's certainly an attempt to stifle political thought, especially in Missouri. It definitely makes me pause, if nothing else. Maybe Missouri is just a test bed for squelching political thought."

ACLU officials blasted a Texas fusion center last month for distributing a "Prevention Awareness Bulletin" that called on law enforcement officers to report activities of local lobbying groups, Muslim civil rights organizations and anti-war protest groups.

Soon there may be nobody left to lend to America

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Anyone who thought Ben Bernanke and his Federal Reserve Board colleagues were out of ammunition received a rude, or pleasant, shock last week. Rude, if you worry that a few extra trillions sloshing around the economy might one day trigger a wave of inflation; pleasant, if you worry that the economy is sinking fast, and the Obama administration and Congress haven’t a clue what to do about it.

The Fed plans to buy $300 billion of Treasury IOUs in the next six months (more to come if needed), pour $1.45 trillion into the mortgage market, and keep interest rates close to zero for “an extended period”. There’s more in the Fed’s “do whatever it takes” arsenal if these steps don’t bring interest rates down so people can borrow more cheaply to buy houses, cars and other durable goods. But so far, so good: interest rates on 30-year mortgages fell below 5%. Whether that will encourage enough creditworthy borrowers to sop up the huge inventory of unsold homes, much less trigger new construction, is difficult to predict.

But the dollar dropped like a stone. Earlier, Chinese premier Wen Jiabao said he was “a little bit worried” that America might cheapen its currency and pay back the $1.2 trillion it owes in depreciated dollars. Now that the Fed has moved, he must be a lot worried.

The Fed’s decision to pump trillions into the money markets comes on top of President Barack Obama’s proposal to drive the federal deficit to 12% of GDP by borrowing trillions to fund a few stimulus projects, universal healthcare, a green energy system and a host of other programmes on his wish list. Obama’s assurance that America will never default on its debt hasn’t completely soothed the markets: The Wall Street Journal reports that it now costs seven times as much to buy insurance against an American government default as it did only a year ago. Besides, America can always inflate its way out of its obligations.

Not to worry, says the president. The economy will soon be growing at an annual rate of about 4%. Along with the tax increases to be imposed on the top 2% of earners, billions from the sale of carbon-pollution permits and reductions in age-related entitlements, the growth will drive the deficit down to 3% of GDP in 2013. Unfortunately, 2% of earners can’t or won’t carry the entire burden, the carbon-permit programme might not produce the predicted revenues after Democratic congressmen from coal-producing states chop away at it, and Congress has told the president that any proposal to reduce the huge entitlement payments due the ageing baby-boomers will be DOA – dead on arrival.

Where China’s Wen sees problems, Paul Paulson (no relation to former Treasury secretary Hank) sees opportunity. Paulson, you will recall, is the hedge-fund manager who made $10 billion in 2007 betting that the subprime mortgage market would implode. The day before Bernanke’s announcement, Paulson made another wager. He shelled out $1.28 billion for a stake in the gold-mining company AngloGold Ashanti. He is betting that by debasing their currencies, governments will trigger inflation that will cause a flight from paper currencies to gold. Within 24 hours of Paulson’s bet, it paid off, thanks to the Fed: the price of gold jumped 7%, one of the many commodities to experience large increases.

So here is where we are at. The combination of the Fed’s surprise attack on the credit markets and the president’s decision to borrow-and-spend will give the economy a lift. My own guess, and that of many economists with whom I have spoken, is that by the middle of next year, if not sooner, the economy will start growing again at a decent rate.

At that point, Bernanke will have to decide whether to start pulling money out of the system by selling off some of the assets on his swollen balance sheet, and the Obama administration will have to decide how to bring down the fiscal deficit. Bernanke is keenly aware that during the Great Depression the Fed tightened the money supply prematurely, nipping a nascent recovery in the bud. So he is likely to stall.

Meanwhile, there is little prospect that Congress will do what is necessary to bring spending and borrowing down to levels that do not trigger inflation. Politicians just don’t worry as much about inflation as about catering to their multiple constituencies. So the Treasury will have more trillions in IOUs to peddle.

But its best customers just might be unenthusiastic about adding significantly to their holdings. Wen already owns trillions in Treasury bills that are depreciating in value. Besides, China’s mounting needs for infrastructure and an improved safety net will sop up funds once used to buy American securities. Japan, another large customer, is now running a current-account deficit, and so it won’t have as many dollars to recycle. Nor will Middle East buyers, no longer receiving a flood of dollars from $140-a-barrel oil. Little wonder that Larry Lindsey, former economic adviser to President George W Bush, says he “cannot figure out what combination of foreign buyers is going to acquire . . . [the] debt” that Obama’s plans will generate.

Which leaves Americans and the Fed as customers. Even if they save more, domestic consumers can’t absorb all the Treasury bonds that will be on offer. And if the Fed keeps buying, it will pour fuel on the inflationary fires.

I have never before doubted the resilience of the American economy – its ability to survive inevitable downturns after periods of excess, and to weather the burdens heaped on it by politicians. Obama, however, has me shaken, perhaps because I am not stirred by his rhetoric.

Fortunately, even some liberal Democrats are suffering from “bailout fatigue. More important, Bernanke has so far shown a sure touch in managing monetary policy, and might head off a bout of inflation by shrinking the money supply when the economy is no longer too cold, has not yet gotten too hot, and is in just the right condition for such a move. If so, Goldilocks might just have a new life.

Irwin Stelzer is a business adviser and director of economic policy studies at the Hudson Institute.

In response to inflammatory editorial, Spencer listens and questions

by Robert Spencer

I haven't even left the Jihad Watch offices in Kalispell, Montana to make my way to St. Louis yet, but the editorial staff of Student Life, the independent paper of Washington University in St. Louis, has already decided that my speech there tomorrow is going to be "inflammatory," and they're taking action -- including calling on students to protest.

The editorial is called "In response to inflammatory speech, listen and question." It's in Student Life, March 23 (thanks to Jeffrey Imm). And in response to this inflammatory editorial, I'm going to listen and question.

Tomorrow evening, author Robert Spencer will speak in Graham Chapel about Islam and the threat of jihad.

Actually, no, I won't be speaking in Graham Chapel after all. I'll be speaking in a room called "Lab Sciences 300," where the event has been moved because of security concerns and indications that plans were afoot to disrupt the event. It's interesting that the paper is calling my talk, which they haven't heard, "inflammatory," while failing (so far) to notice the thuggery that is already coming from the other side.

He is, to say the least, a controversial figure.

We live in a sad age when simply telling the truth and reporting the facts accurately renders one "controversial," but that's the way it is.

To Spencer’s supporters, he is a voice of reason, willing to tell the truth about Islam and call attention to what he argues are the roots and goals of jihad violence as expressed in the source texts of Islam.

The "source texts of Islam" are public. They are open to inspection. What I "argue" about the "roots and goals of jihad violence as expressed in the source texts of Islam" can be easily verified or refuted. But it is easier just to call names:

To his detractors, he is an Islamophobe who incites hate through rhetoric and inaccurate research.

"Inaccurate" in what way? Unspecified, as always. And there's that manipulative neologism "Islamophobe" again. And yet the people who sling this word around never seem to ask themselves why there are no Buddhophobes, or Hindupohobes, or Sikhophobes. Why is it that the bigoted racists always seem to fasten on poor old misunderstood Islam?

Though his views are charged, Spencer—like every lecturer who visits campus—has an inalienable right to speak and express his views. The ultimate way to respect a person’s right to speak is to consider his ideas and their implications, and to engage with the speech by further developing the ideas presented or by criticizing them.

High-minded, this, but contradicted by their call for protests that comes a bit later in the piece. Read on.

Spencer’s arguments, like those of Daniel Pipes, who spoke at Washington University in October, have the potential to stir up hatred and bigotry in others.

This kind of criticism is symptomatic of our age of muddled thinking. The sole criterion for evaluating arguments should be whether or not they are true. For arguments like this, although they're always wielded by Leftists against those whose ideas they dislike, cut both ways: after all, the Student Life editor's arguments in this editorial have the potential to stir up hatred against me. But so what? The only thing that matters is whether or not it is accurate, which of course it is not, not remotely. The emotional effect it may have on those who read it is beyond the control of the author, and irrelevant to its quality.

In a book review posted on the Jihad Watch blog, Spencer writes, “traditional Islam contains violent and supremacist elements, and…its various schools unanimously teach warfare against and subjugation of unbelievers.

Uh huh. And? Apparently the Student Life author thinks this is an inflammatory or patently inaccurate statement. Unfortunately for him or her, it happens to be perfectly accurate -- and no one can produce a recognized Islamic school of jurisprudence (madhhab) that does not indeed teach warfare against and subjugation of unbelievers. Once again, it's a sad age when simply stating an unpleasant fact gets you labeled an inciter of hatred and bigotry.

And here comes the best part, where the author explains that I don't actually say a number of inflammatory things, but, well, by golly, it's my fault that other people think them:

Though Spencer himself does not claim that the United States should discriminate against Muslims, many who engage with his argument reach that conclusion because of him. And though Spencer does not claim that Muslims uniformly embrace dangerous ideologies, this essentialization of Islam has the effect of essentializing all Muslims. And because this effect can quickly lead to hasty cultural discrimination, it is extremely important to challenge Spencer in this respect.

Righto. Challenge me on what I don't say because other people think things you don't like. And you say you're a university student?

As we said in our staff editorial published prior to Pipes’ appearance on campus, it is important to remember that the most effective challenges to essentialist, reductive arguments like Spencer’s are complex discussion and continuing dialogue.

Yes, and you appear to have mastered these skills beautifully!

Students ought not blindly accept Spencer’s opinions as fact.

Indeed not. I hope that every assertion I will make will be carefully checked by everyone in the audience. Then a few eyes would be opened.

Instead, they should make full use of the question-and-answer period following his speech and, if they deem fit, of any protests of Spencer’s visit, thereby ensuring that Tuesday’s event becomes a spark for a larger conversation about Muslims, the globe and our society.

The student paper here is calling upon students to protest against a talk they haven't heard, based on things I don't say, and they're calling me inflammatory!

Whatever one thinks about Spencer, it is important to weigh the larger context and implications of his remarks. Specifically, we must consider how global conflict—real or imagined—affects us, how our society plans to respond and what that response says about our social character. A gross, simplified dichotomy between Islam and the West is neither an advanced nor a productive framework, and in reality eschews the “Western” values of tolerance and liberty that such a division purports to defend.

Fine. Come on out tomorrow night, and let's talk it over. I'm all for opposing the "gross, simplified dichotomy between Islam and the West" proffered by the likes of Osama bin Laden, Anjem Chaudary, and the like. Are you? Or would doing so be "essentialist"?

As students listen to Spencer’s speech, it important that they remain focused on how his arguments fit into their vision for an ideal society.

Yeah, we all want peace, guys, so let's bury our heads in the sand, ignore this threat, and blame the messenger!

I expect better from the students at Washington University in St. Louis. Is a genuine discussion of the issues too much to ask? We'll see, but based on the intellectual quality of this editorial, I won't be going in expecting much.

Government and medicine: An unfortunate similarity

(Compiler's note: This is a must read editorial.)

BY ROBIN L. QUILLON


“Maggots no wonder cure for festering wounds.”

When I first saw this Reuters headline, I thought I was about to read an article about new Treasury Secretary Timothy “tax cheat” Geithner, or about other tax cheats President Obama seems to be offering up for positions in his administration.

Or I thought it was an article about the president’s ever-expanding and bloated stimulus plan. Or maybe even, I thought, an article about the political finger-pointing going on in both parties regarding the AIG bonuses.

But, no, the article was about how maggots at one time were placed in wounds to help the healing process, and how that really may not have been such a great idea after all.

I did, unfortunately, find some striking similarities between the maggots’ story and what goes on in Washington.

For example, as Reuters reported, maggots do clean wounds more quickly than do normal methods of treatment, but this does not lead to faster healing.

Correspondingly, it looks as if we have nothing more than a new crop of maggots in charge and on the Hill, and they are just not getting the job done.

Some patients, the story continued, also found so-called larval therapy more painful. That according to a study in the British Medical Journal.

My thoughts returned to D.C., where “tax cheat” larva Geithner needs to resign.

He is in way over his head.

Congress should have rejected his nomination. Then again, the president should never have submitted his name in the first place – especially in light of his tax-cheating.

Gruesome as it sounds, maggots have a long history in medicine. Napoleon’s battle surgeon was a maggot enthusiast. They were put to work during the American Civil War, and also in the trenches of World War I.

Our political leaders have a long history of doing the same things year after year while expecting different results. It’s time to clean house in Congress. And as the leader of his party, Obama needs to get his maggots wiggling to the same tune and get the job done for the American people.

More recently, medical experts have been looking again at the creatures’ healing powers, including their potential to prevent dangerous infections such as methicillin-resistant Staphylococcus aureus (MRSA).

Hmmm, the American people have been looking for a long time for our elected leaders to get the job done, only to be disappointed year after year.

Enough is enough!

It’s time the American people rise up and take back their government, and we do that in the voting booth.

But back to the maggots’ story, which said that scientists have determined that “It doesn’t seem to be worth pursuing in this particular group of patients, if what you are aiming for is quicker healing.”

As things are running now, the same can be said of our leaders in Washington.

And the final striking similarity between the maggots in this study and those in Washington: When maggots run out of dead flesh to eat, they eat each other.

Yuk!

Orlando 'Tea Party' rally draws more than 4,000

Conyers suggests probe of ACORN

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In an startling partisan shift, House Judiciary Committee Chairman John Conyers Jr. on Thursday proposed holding hearings on claims the liberal activist group ACORN engaged in a pattern of crimes ranging from voter fraud to a mob-style “protection” racket.

Mr. Conyers, Michigan Democrat and fierce partisan, suggested a congressional probe after scathing testimony about the Association of Community Organizations for Reform Now (ACORN) during a hearing on various voting issues related to the 2008 presidential election.

Mr. Conyers called the accusations “a pretty serious matter.”

“I think that it would be something that would be worth our time,” he said during Thursday's hearing. “We've never had one person representing ACORN before the committee. ... I think in all fairness we ought to really examine it.”

The testimony by Pittsburgh lawyer Heather Heidelbaugh accused the nonprofit group of violating tax, campaign-finance and other laws by, among other things, sharing with the Barack Obama campaign a list of the Democrat's maxed-out campaign donors so ACORN could use it to solicit them for a get-out-the-vote drive.

She also testified that the Democrat-allied group provided liberal causes with protest-for-hire services and coerced donations from targets of demonstrations through a shakedown it called the “muscle for the money” program.

Ms. Heidelbaugh, a member of the executive committee of the Republican National Lawyers Association, spearheaded an unsuccessful lawsuit last year seeking a court injunction in Pennsylvania against ACORN's voter-registration drive for the 2008 presidential campaign. She appeared as a witness at the request of Republican committee members.

Mr. Conyers, who is known for his drive to continue investigating the Bush administration, previously defended ACORN. In October, he condemned an FBI voter fraud investigation targeting the group. He questioned whether it was politically motivated to hamper a voter-registration drive targeting groups likely to support Mr. Obama's candidacy.

But Mr. Conyers' shift was met by resistance from fellow Democrats on the committee, and it was unclear whether a hearing would be scheduled.

Rep. Jerrold Nadler, New York Democrat and chairman of the Judiciary subcommittee on the Constitution, civil rights and civil liberties that hosted Thursday's hearing, suggested there was not enough “credible evidence” to warrant a hearing focused exclusively on ACORN.

Rep. Melvin Watt said he would concede that ACORN and some of its members engaged in voter fraud. But he said voter fraud was already covered by existing law and Congress has not further role in the matter.

“I'm not coming to a hearing to have a trial on ACORN. That's not my job,” the North Carolina Democrat said.

Republican committee member Rep. Steve King of Iowa said getting the Democrat-led Congress to take action against ACORN “is going to be difficult but I am encouraged by John Conyers' request.”

The accusations against the group, which were based entirely on sworn court testimony late last year by ACORN whistleblower Anita MonCrief.

No ACORN officials testified at Thursday's hearing, but they have said none of the charges are true and dismiss Ms. MonCrief as a disgruntled, low-level employee who was fired for stealing money from the organization.

Kevin Whelan, ACORN deputy political director, did not return a call for comment Thursday.

Ms. MonCrief worked for years as a clerk at the D.C. office of ACORN-affiliated Project Vote before being fired for charging about $2,000 in personal expenses on an ACORN credit card.

She said the hearing Thursday - she attended but did not testify - was an extremely partisan exercise except for Mr. Conyers' support for further hearings.

“I thought that was really wonderful because he took a stand that I really didn't think was going to come from that side,” Ms. MonCrief, a registered Democrat, said after the hearing.

U.S. missile strikes take heavy toll on Al Qaeda, officials say

By Greg Miller

Predator drone attacks in northwest Pakistan have increased sharply since Bush last year stopped seeking Pakistan's permission. Obama may keep pace as officials speak of confusion in Al Qaeda ranks.

Reporting from Washington -- An intense, six-month campaign of Predator strikes in Pakistan has taken such a toll on Al Qaeda that militants have begun turning violently on one another out of confusion and distrust, U.S. intelligence and counter-terrorism officials say.

The pace of the Predator attacks has accelerated dramatically since August, when the Bush administration made a previously undisclosed decision to abandon the practice of obtaining permission from the Pakistani government before launching missiles from the unmanned aircraft.

Since Aug. 31, the CIA has carried out at least 38 Predator strikes in northwest Pakistan, compared with 10 reported attacks in 2006 and 2007 combined, in what has become the CIA's most expansive targeted killing program since the Vietnam War.

Because of its success, the Obama administration is set to continue the accelerated campaign despite civilian casualties that have fueled anti-U.S. sentiment and prompted protests from the Pakistani government.

"This last year has been a very hard year for them," a senior U.S. counter-terrorism official said of Al Qaeda militants, whose operations he tracks in northwest Pakistan. "They're losing a bunch of their better leaders. But more importantly, at this point they're wondering who's next."

U.S. intelligence officials said they see clear signs that the Predator strikes are sowing distrust within Al Qaeda. "They have started hunting down people who they think are responsible" for security breaches, the senior U.S. counter-terrorism official said, discussing intelligence assessments on condition of anonymity. "People are showing up dead or disappearing."

The counter-terrorism official and others, who also spoke anonymously, said the U.S. assessments were based in part on reports from the region provided by the Pakistani intelligence service.

The stepped-up Predator campaign has killed at least nine senior Al Qaeda leaders and dozens of lower-ranking operatives, in what U.S. officials described as the most serious disruption of the terrorist network since 2001.

Among those killed since August are Rashid Rauf, the suspected mastermind of an alleged 2006 transatlantic airliner plot; Abu Khabab Masri, who was described as the leader of Al Qaeda's chemical and biological weapons efforts; Khalid Habib, an operations chief allegedly involved in plots against the West; and Usama al-Kini, who allegedly helped orchestrate the September bombing of the Marriott Hotel in the capital, Islamabad.

Al Qaeda's founders remain elusive. U.S. spy agencies have not had reliable intelligence on the location of Osama bin Laden since he slipped across the Pakistan border seven years ago, officials said. His deputy, Ayman Zawahiri, remains at large after escaping a missile strike in 2006.

But the Predator campaign has depleted the organization's operational tier. Many of the dead are longtime loyalists who had worked alongside Bin Laden and were part of the network's hasty migration into Pakistan in 2001 after U.S.-led forces invaded neighboring Afghanistan. They are being replaced by less experienced recruits who have had little, if any, history with Bin Laden and Zawahiri.

The offensive has been aided by technological advances and an expansion of the CIA's Predator fleet. The drones take off and land at military airstrips in Pakistan, but are operated by CIA pilots in the United States. Some of the pilots -- who also pull the triggers on missiles -- are contractors hired by the agency, former officials said.

Predators were originally designed as video surveillance aircraft that could hover over a target from high altitudes. But new models are outfitted with additional intelligence gear that has enabled the CIA to confirm the identities of targets even when they are inside buildings and can't be seen through the Predator's lens.

The agency is also working more closely with U.S. special operations teams and military intelligence aircraft that hug the Pakistan border, collecting pictures and intercepting radio or cellphone signals.

Even so, officials said that the surge in strikes has less to do with expanded capabilities than with the decision to skip Pakistani approval. "We had the data all along," said a former CIA official who oversaw Predator operations in Pakistan. "Finally we took off the gloves."

The Bush administration's decision to expand the Predator program was driven by growing alarm over Al Qaeda's resurgence in Pakistan's tribal belt.

A 2006 peace agreement between Islamabad and border tribes had allowed the network to shore up its finances, resume training operatives and reestablish connections with satellite groups.

The Bush administration had been constrained by its close ties with Pakistani President Pervez Musharraf, who argued against aggressive U.S. action. But by last summer, after a series of disrupted terrorist plots in Europe had been traced to Pakistan, there were calls for a new approach.

"At a certain point there was common recognition of the untenable nature of what was happening in the FATA," said a former senior U.S. counter-terrorism official, referring to Pakistan's Federally Administered Tribal Areas where Al Qaeda is based.

The breaking point came when Musharraf was forced to resign mid-August, officials said. Within days, President Bush had approved the new rules: Rather than requiring Pakistan's permission to order a Predator strike, the agency was allowed to shoot first.

The effect was immediate.

There were two Predator strikes on Aug. 31, and three more by the end of the week. CIA officials had suspected that their targets were being tipped by Pakistani intelligence to pending U.S. strikes; bypassing the government ended that concern.

It also eliminated delays. Former CIA officials said getting permission from Pakistani authorities could take a day or more, sometimes causing the agency to lose track of the target. The missed opportunities were costly because it often took months to assemble the intelligence necessary for a strike.

In 2006, for example, the CIA got word from Pakistani intelligence that Habib was staying at a compound in Miram Shah. A CIA officer involved said he spent weeks at a Pakistani military outpost near the compound, monitoring images from a Predator on a flat-screen device.

"We had a Predator up there for hours at a stretch, just watching, watching," the official said. The agency studied the layout of the compound, trying to determine who slept where, and scanning the surrounding roads for the arrival of Habib's truck.

"They took a shot at the compound a week after I left," the official said. "We got some bodyguards, but he was not there." It took more than two years for the agency to catch up to Habib again. He was killed in a Predator strike in South Waziristan in October.

Pakistan has repeatedly criticized the Predator campaign; the attacks are reported to have caused dozens of civilian casualties. "Drone attacks are counterproductive," said Nadeem Kiani, press attache at the Pakistan Embassy in Washington. Rather than firing missiles, Kiani said, the United States should provide intelligence to Pakistan "and we will take immediate action."

U.S. officials say that despite such complaints, the Pakistani government's opposition has been muted because the CIA has expanded its targeting to include militant groups that threaten the government in Islamabad.

The success of the Predator campaign has prompted some counter-terrorism officials to speak of a post-Al Qaeda era in which its regional affiliates -- in North Africa and elsewhere -- are all that remain after the center collapses.

"You can imagine a horizon in which Al Qaeda proper no longer exists," said Juan Zarate, former counter-terrorism advisor to Bush. "If you were to continue on this pace, and get No. 1 and No. 2, Al Qaeda is dead. You can't resuscitate that organization as we know it without its senior leadership."

How to achieve that without undermining the government in Pakistan is a key issue the Obama administration faces as it searches for a new strategy in the region. In a tour of the region, CIA Director Leon E. Panetta arrived in Islamabad Saturday for talks with Pakistani intelligence officials.

"There's a risk of driving [Al Qaeda and its allies] farther and farther into Pakistan, into cities," said Daniel Byman, a former CIA analyst and terrorism expert at Georgetown University. "There's a danger of weakening the government we want to bolster. It's already to some degree a house of cards."

In fact, the stepped-up strikes have coincided with a deterioration in security in Pakistan. Over the last six months, Taliban elements tied to Al Qaeda have carried out increasingly bold attacks, including in Islamabad, and a recent truce between the government and militants in the Swat Valley was seen by some observers as a capitulation to Islamic hard-liners.

But proponents of the strikes argue that the opportunity to cripple Al Qaeda, perhaps permanently, outweighs concerns over the strains being placed on Pakistan.

"Is this really helping when you have radical militants controlling more territory than ever before?" Zarate said. "That is a good question, but that is a different question from whether this is effective against Al Qaeda."

So far, that appears to be the prevailing view within the Obama administration. A strike in Pakistan's North-West Frontier Province last Sunday was the second in four days, and the ninth this year.

Panetta, asked about the Predator attacks in a meeting with reporters last month, refused to discuss the program directly, but said, "Nothing has changed our efforts to go after terrorists, and nothing will change those efforts."

"There is essentially one battle going on, and it is a battle about Islam"

by Robert Spencer

So says former British Prime Minister Tony Blair. And he makes it all very simple and Manichaean: there are "two elements in Islam: one wanted to work with the West; the other did not." We just have to work with the one that wants to work with the West.

Of course! Why didn't anyone think of that before?

Anything in his talk about why the "extremists" are so popular, or is that assumed to be a simple matter of policy and reaction to Western foreign policy? Did Blair even get close to mentioning the fact that there is a traditional, deeply rooted idea in Islamic texts and teachings, that Muslims must wage war against and subjugate unbelievers -- regardless of what those unbelievers have done or not done? I am sure that he didn't, despite its relevance to his point.

But until analysts grapple with that fact, nothing is more certain than that the global jihad will continue, no matter which smiling moderate is feted in Western capitals today.

"Battle on Islam heart of Mideast crisis—Blair," by John Nery for the Philippine Daily Inquirer, March 23 (thanks to Wilkie):

MANILA, Philippines – Former British Prime Minister Tony Blair, in Manila for a series of leadership conferences, used an open forum at the Ateneo de Manila University to make what he called "a larger point" about the turmoil in the Middle East.

"There is essentially one battle going on, and it is a battle about Islam."...

He told a sympathetic audience that the "larger point" was the right framework with which to understand the pivotal, conflict-ridden region.

Blair said there were two elements in Islam: one wanted to work with the West; the other did not.

The right approach to peace and development in the Middle East, then, would be to "partner with the modernizing and moderate element," he said.

He made his remarks in answer to a question about how he made major decisions, such as joining the US-led Coalition of the Willing in invading Iraq.

He answered the Iraq question first, and then broadened his view to include the titanic struggle for the future of Islam.

Referring to the moderates doing battle with extremists, he said: "We gotta make sure those guys win."