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David Stockman — Right On The Money, Economy, Trump and The Warfare and Welfare State — You Have Been Warned — Videos

Posted on April 30, 2017. Filed under: American History, Banking, Blogroll, Books, British History, Business, Communications, Congress, conservatives, Constitution, Corruption, Crisis, Cult, Culture, Economics, Education, Elections, Employment, European History, Federal Government Budget, Fiscal Policy, Foreign Policy, Freedom, government spending, history, History of Economic Thought, Illegal, Immigration, Inflation, Investments, Islam, Law, liberty, Life, Links, Macroeconomics, media, Microeconomics, Middle East, Monetary Policy, Money, Money, Non-Fiction, People, Philosophy, Photos, Politics, Rants, Raves, Raymond Thomas Pronk, Speech, Strategy, Talk Radio, Tax Policy, Taxation, Taxes, Video, Wahhabism, War, Wealth, Welfare, Wisdom, Writing | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , |

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World’s Greatest Memory and Trump’s La la Land | David Stockman’s Warning

Published on Apr 29, 2017

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[youtube-https://www.youtube.com/watch?v=5exbO-Ros2Q]

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Stockman: Market Will Not Be Pretty Under Trump

[Ed. Note: To see exactly what this former Reagan insider has to say about Trump and specifically what he believes must be done to drain the swamp, David Stockman is sending out a copy of his book Trumped! A Nation on the Brink of Ruin… And How to Bring It Back out to any American willing to listen. To learn how to get your free copy CLICK HERE.]

As bonds break a three day win streak and the U.S market hitting new record highs with a trifecta of records, CNBC was roaring about what to expect going forward. The Daily Reckoning contributor David Stockman joined Courtney Reagan to discuss what to expect going forward.

After the CNBC host positioned the critiques offered by David Stockman of the Trump administration she asked whether that would continue given the state of the market. Stockman did not mix words beginning the conversation with, “What’s going on today is complete insanity. The market is apparently pricing in a huge Trump stimulus package, when if you just look at the real world out there the only thing that is going to happen is a fiscal bloodbath and a White House train wreck like never before in U.S history.

How much more evidence do these so called traders need? Trump is lost in Twitter-land and he is out of control. He is turning out to be a complete jackass in the Oval Office. Co-President Bannon is off the deep end on terrorism, travel bans, Mexican walls, immigrant bashing and protectionism.”

David Stockman is a former Reagan Administration official who was the Office of Management and Budget Director. He also served as a two-term Congressman from the great state of Michigan. His latest book, Trumped! A Nation on the Brink of Ruin… And How to Bring It Back is out now. It offers his insight and exclusive analysis on exactly what the newly elected president must do in order to succeed in the White House. To get your own FREE copy, CLICK HERE to learn how.

“[They are] having nothing to do with the economic agenda and Trump has got an empty economic bench. He’s got no Secretary of the Treasury, no Office of Management and Budget, no Council of Economic Advisor Chairman. By this time, when I was there with the Reagan Administration, the plan was ready to go and he was going to Congress within a couple of days into February. We have a debt ceiling freight train coming down the road which will hit March 15 and then the cash will start running out and the system will be on edge. All of the continuing resolutions expire in April.”

“They are going to spend the year trying to repeal and replace Obamacare and it will be a fiasco. Nothing is going to happen this year. I don’t even think they can pass the budget resolution. There is going to be no tax action this year. If there is any bill next year it is going to be deficit neutral. Which means it is not going to add $15 to earnings like these crazy people expect.”

“Why would you be trading in this market, with this kind of chaos emerging everywhere at twenty six times trailing earnings? That’s where we are. It is completely crazy and it is only a question of how many more days or weeks that this kind of fantasy land can last.”

David Stockman Market In Text 2

Courtney Reagan then pressed back asking, “At what point do you give in and admit that [Trump] is atypical but maybe he could get things done? I mean, look at all of the CEO’s that Trump has met with.” The former Reagan insider remarked that, “CEO’s come and go with every president. They came in with Reagan, they tell a president what they want to hear. These guys are just selling the song and dance about how many jobs they’re going to create in the next five years. They have no clue.”

“If we have a recession in the next five years, which surely we will, because recessions have not been outlawed and we haven’t had one for ten years. None of this stuff is going to happen. This is meaningless. What is meaningful is that Trump is out of control. This tweeting and getting off track on all of this terrorism stuff. This is a sign that there is going to be no governing coalition and that all of this fiscal stimulus expected by Wall Street is a complete fantasy. It can’t happen.”

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When CNBC then turned over the camera to a day trader who asked about the positive sentiment that exists within the market regarding Trump and his plan to deregulate Stockman stayed true to message. “Trump is just putting out press releases and the guise of Executive Orders. All of this stuff is going to get litigated, it goes through a rulemaking process, that takes years. So the relief on regulation will be important, but it way down the road and it won’t be that impactful.”

“The second thing, is we’re at 92 months in this expansion already. It is running out of gas. You can’t expect it to run forever. That is seemingly what is priced in by the market.”

“The third thing is, we have a giant debt and deficit problem. The debt ceiling is coming back into play it will be 20 trillion when it freezes in on March 15th. I’ll tell you this, people aren’t paying attention to the fact that Trump will never get a debt ceiling increase through the Congress without a government shutdown. When that happens it is, “bar the doors” because nobody is expecting it. We need to look at the facts, not the hopes.”

As the CNBC affirmed, it is not clear that the market is just going to drop tomorrow and history will repeat itself, Stockman repositioned. “The market it clearly factoring in a big Trump stimulus and I think anybody down there would admit if it doesn’t happen, if we get zero tax cuts, if we get a fiscal bloodbath in the Washington I am describing – the market is not going to stay where it is today at these absurd multiples of earnings.”

“This is all based on the idea that there is going to be a surge of economic growth and that profits are going to come back from about $89 a share by basis, where they were during the last twelve months, to a potential $110 or $130. My argument is there is not going to be any economic rebound. There is not going to be any profit surge. Therefore the market will be repricing dramatically downward once it is clear.”

Another CNBC analysis asked why – with the positive trends in jobless claims, manufacturing increasing, interest rates at near record lows – would the market not close out the year near record levels? “The market is assuming that profits are going to rebound. That we are not going to have any market dislocation and that nobody is going to be pushing back on Trump. It is hard to understand how people watching the day-to-day action down there could believe that.”

“Everybody is pushing back on Trump, he can’t even get his cabinet approved. He’s going to be bogged down in a Supreme Court fight, he’s going to be bogged down in a fight over a ridiculous travel ban. The idea that there is not going to be pushback is naive. What there is going to be is a train wreck. It is already clear that the people in the White House have no idea what they’re doing and it is only a matter of time before this honeymoon goodwill evaporates and the politicians get down to doing what they do best. Which is to undermine and obstruct anything that might be positive.”

When finally asked whether there is anything positive that would make him turn bullish in the near future he responded affirmably, “No, because Trump is inheriting thirty years of a disaster created by his predecessors. We have to take this $20 trillion of debt seriously. There is $10 trillion more built in under current policy, and that is without a dime of Trump tax cuts, infrastructure or stimulus. There is going to be a tremendous fiscal crisis in the years ahead which will prevent any of the kind of action that the “stimulus junkies” are looking for.

To catch the full interview with David Stockman on CNBC click here. If you would like to claim your own free copy of David Stockman’s bestseller Trumped! Click here to learn how.

Thanks for reading,

Craig Wilson, @craig_wilson7
for the Daily Reckoning

https://dailyreckoning.com/stockman-market-under-trump/

David Stockman

From Wikipedia, the free encyclopedia
David Stockman
David Stockman by Gage Skidmore.jpg
Director of the Office of Management and Budget
In office
January 21, 1981 – August 1, 1985
President Ronald Reagan
Preceded by Jim McIntyre
Succeeded by Jim Miller
Member of the U.S. House of Representatives
from Michigan‘s 4th district
In office
January 3, 1977 – January 21, 1981
Preceded by Edward Hutchinson
Succeeded by Mark Siljander
Personal details
Born David Alan Stockman
November 10, 1946 (age 70)
Fort Hood, Texas, U.S.
Political party Republican
Spouse(s) Jennifer Blei (1983–present)[1]
Education Michigan State University (BA)
Harvard University
Website Official website

David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

Early life and education

Stockman was born in Fort Hood, Texas, the son of Allen Stockman, a fruit farmer, and Carol (née Bartz).[2] He is of German descent, and his family’s surname was originally “Stockmann”.[3] He was raised in a conservative family, and his maternal grandfather, William Bartz, was a Republican county treasurer for 30 years.[4][5] Stockman was educated at public schools in Stevensville, Michigan. He graduated from Lakeshore High School in 1964[6] and received a B.A. in History from Michigan State University in 1968. He was a graduate student at Harvard University, 1968–1970 studying theology

Political career

Stockman’s Congressional portrait

He served as special assistant to United States Representative and 1980 U.S. presidential candidate John Anderson of Illinois, 1970–1972, and was executive director, United States House of Representatives Republican Conference, 1972–1975.

Congress

Stockman was elected to the United States House of Representatives for the 95th Congress and was reelected in two subsequent elections, serving from January 3, 1977, until his resignation January 21, 1981, to accept appointment as Director of the Office of Management and Budget for U.S. President Ronald Reagan.

Office of Management and Budget

Stockman was one of the most controversial OMB directors ever appointed, also known as the “Father of Reaganomics.” He resigned in August 1985. Committed to the doctrine of supply-side economics, he assisted in the passing of the “Reagan Budget” (the Gramm-Latta Budget), which Stockman hoped would curtail the “welfare state“. He thus gained a reputation as a tough negotiator with House Speaker Tip O’Neill‘s Democratic-controlled House of Representatives and Majority Leader Howard Baker‘s Republican-controlled Senate. During this period, Stockman became well known to the public during the contentious political wrangling concerning the role of the federal government in American society.

Stockman’s influence within the Reagan Administration was weakened after the Atlantic Monthly magazine published the infamous 18,246 word article, “The Education of David Stockman”,[7] in its December 1981 issue, based on lengthy interviews Stockman gave to reporter William Greider.

Stockman was quoted as referring to Reagan’s tax act in these terms: “I mean, Kemp-Roth [Reagan’s 1981 tax cut] was always a Trojan horse to bring down the top rate…. It’s kind of hard to sell ‘trickle down.’ So the supply-side formula was the only way to get a tax policy that was really ‘trickle down.’ Supply-side is ‘trickle-down’ theory.”[7] Of the budget process during his first year on the job, Stockman was quoted as saying, “None of us really understands what’s going on with all these numbers,” which was used as the subtitle of the article.[7]

After “being taken to the woodshed by the president” because of his candor with Greider, Stockman became concerned with the projected trend of increasingly large federal deficits and the rapidly expanding national debt. On 1 August 1985, he resigned from OMB and later wrote a memoir of his experience in the Reagan Administration titled The Triumph of Politics: Why the Reagan Revolution Failed in which he specifically criticized the failure of congressional Republicans to endorse a reduction of government spending to offset large tax decreases to avoid the creation of large deficits and an increasing national debt.

Fiscal legacy

President Jimmy Carter’s last fiscal year budget ended with a $79.0 billion budget deficit (and a national debt of $907,701,000,000 [8] as of September 30, 1980), ending during the period of David Stockman’s and Ronald Reagan’s first year in office, on October 1, 1981.[9] The gross federal national debt had just increased to $1.0 trillion during October 1981 ($998 billion on 30 September 1981, up from $907.7 billion during the last full fiscal year of the Carter administration[8]).

By 30 September 1985, four and a half years into the Reagan administration and shortly after Stockman’s resignation from the OMB during August 1985, the gross federal debt was $1.8 trillion.[8] Stockman’s OMB work within the administration during 1981 until August 1985 was dedicated to negotiating with the Senate and House about the next fiscal year’s budget, executed later during the autumn of 1985, which resulted in the national debt becoming $2.1 trillion at fiscal year end 30 September 1986.[8] Reaganomics had just begun.

In 1981, Stockman received the Samuel S. Beard Award for Greatest Public Service by an Individual 35 Years or Under, an award given out annually by Jefferson Awards.[10]

Business career

After leaving government, Stockman joined the Wall St. investment bank Salomon Brothers and later became a partner of the New York–based private equity company, the Blackstone Group.[11]:125–127 His record was mixed at Blackstone, with some very good investments, such as American Axle, but also failures, including Haynes International and Republic Technologies.[11]:144–147 During 1999, after Blackstone CEO Stephen A. Schwarzman curtailed Stockman’s role in managing the investments he had developed,[11]:146 Stockman resigned from Blackstone to start his own private equity fund company, Heartland Industrial Partners, L.P., based in Greenwich, Connecticut.[12]

On the strength of his investment record at Blackstone, Stockman and his partners raised $1.3 billion of equity from institutional and other investors. With Stockman’s guidance, Heartland used a contrarian investment strategy, buying controlling interests in companies operating in sectors of the U.S. economy that were attracting the least amount of new equity: auto parts and textiles. With the help of about $9 billion in Wall Street debt financing, Heartland completed more than 20 transactions in less than 2 years to create four portfolio companies: Springs Industries, Metaldyne, Collins & Aikman, and TriMas. Several major investments performed very poorly, however. Collins & Aikman filed for bankruptcy during 2005 and when Heartland sold Metaldyne to Asahi Tec Corp. during 2006, Heartland lost most of the $340 million of equity it had invested in the business.[13]

Collins & Aikman Corp.

During August 2003, Stockman became CEO of Collins & Aikman Corporation, a Detroit-based manufacturer of automotive interior components. He was ousted from that job days before Collins & Aikman filed for bankruptcy under Chapter 11 on May 17, 2005.

Criminal and civil charges

On March 26, 2007, federal prosecutors in Manhattan indicted Stockman in “a scheme… to defraud [Collins & Aikman]’s investors, banks and creditors by manipulating C&A’s reported revenues and earnings.” The United States Securities and Exchange Commission also brought civil charges against Stockman related to actions that he performed while CEO of Collins & Aikman.[14] Stockman suffered a personal financial loss, over $13 million, along with losses suffered by as many as 15,000 Collins & Aikman employees worldwide.

Stockman said in a statement posted on his law firm’s website that the company’s end was the consequence of an industry decline, not due to fraud.[15] On January 9, 2009, the US Attorney’s Office announced that it did not intend to prosecute Stockman for this case.[16]

Web site

In March 2014 Stockman launched a web based daily periodical, David Stockman’s Contra Corner featuring both his own articles and those from leading contrarian thinkers on geopolitics, economics, and finance.

Personal life

Stockman lives in the Upper East Side of Manhattan in New York City.[12] He is married to Jennifer Blei Stockman and is the father of two children, Rachel and Victoria. Jennifer Blei Stockman is a chairwoman emerita of the Republican Majority for Choice,[17] and President of the Solomon R. Guggenheim Foundation Board of Trustees.[18] In 2013, Stockman signed an amicus brief to the Supreme Court in favor of same-sex marriage.[19]

Quotes

  • “[Social Security] has to be means-tested. And Medicare needs to be means-tested […] Let the Bush tax cuts expire. Let the capital gains go back to the same rate as ordinary income.”[20]
  • “The Republican Party has totally abdicated its job in our democracy, which is to act as the guardian of fiscal discipline and responsibility. They’re on an anti-tax jihad — one that benefits the prosperous classes.”[21]
  • “I invest in anything that Bernanke can’t destroy, including gold, canned beans, bottled water and flashlight batteries.”[22]
  • “Ninety-two percent of the wealth is owned by five percent of the people.” (Bloomberg TV 2013)
  • “[T]he Republican Party was hijacked by modern imperialists during the Reagan era. As a consequence, the conservative party cannot perform its natural function as watchdog of the public purse because it is constantly seeking legislative action to provision a vast war machine of invasion and occupation.” [23]

Bibliography

  • The Reagan Economic Plan, 1981
  • The Triumph of Politics: Why the Reagan Revolution Failed, Harper & Row, 1986, ISBN 9780060155605
  • The Great Deformation: The Corruption of Capitalism in America, PublicAffairs, 2013, ISBN 9781586489120
  • Trumped!: A Nation on the Brink of Ruin, and How to Bring it Back, 2016

References

  1. Jump up^ “LOSING THE BATTLES AND WINNING THE WAR”. Lexington Herald-Leader. April 7, 1985.
  2. Jump up^ Hunter, Marjorie (December 12, 1980). “Office of Management and Budget David Alan Stockman; Strong Support From Kemp Chosen by House Republicans Views on Economy”. The New York Times.
  3. Jump up^ “News65”. 19 June 1998.
  4. Jump up^ “The Tuscaloosa News – Google News Archive Search”.
  5. Jump up^ “The Montreal Gazette – Google News Archive Search”.
  6. Jump up^ Heibutzki, Ralph (2012-06-04). “Stockman Surprise Speaker at Lakeshore’s Graduation”. The Herald-Palladium. Retrieved 2012-06-04.
  7. ^ Jump up to:a b c William Greider (December 1981). “The Education of David Stockman”. The Atlantic Online.
  8. ^ Jump up to:a b c d Treasury Department’s Historical Debt Outstanding – Annual 1950 – 1999
  9. Jump up^ Office of Management and Budget Historical Tablessee Table 1.1 (Excel Spreadsheet)
  10. Jump up^ “Jefferson Awards”. Jefferson Awards.
  11. ^ Jump up to:a b c David Carey & John E. Morris (2001). King of Capital: The Remarkable Rise, Fall and Rise Again of Steve Schwarzman and Blackstone. Crown.
  12. ^ Jump up to:a b “Collins & Aikman seeks to emerge from bankruptcy,” Bloomberg News article by Jeff Bennett, published in the newspaper The Advocate of Stamford and (identical version, perhaps with changes by the local editor in the common business section for both newspapers) in the Greenwich Time on September 5, 2006, page A7, The Advocate
  13. Jump up^ David Carey and Lou Whiteman, “PE firms find buyer for Metaldyne,” The Deal, Sept. 1, 2006.
  14. Jump up^ Levin, Doris (29 March 2007). “Stockman Outsmarts Self in Detroit”. Bloomberg. Retrieved 19 September 2014.
  15. Jump up^ “Ex-Collins Chief David Stockman Charged With Fraud (Update10)”. Bloomberg. March 26, 2007. Retrieved 2010-08-02.
  16. Jump up^ “Fraud charges dropped against ex-Reagan aide David Stockman”. Chicago Tribune. 10 January 2009. Retrieved 19 September 2014.
  17. Jump up^ About Us Republican Majority for Choice
  18. Jump up^ Trustees, Solomon R. Guggenheim Foundation
  19. Jump up^ [1]
  20. Jump up^ “Why David Stockman Isn’t buying it”. CBS News. March 2, 2012.
  21. Jump up^ Dickinson, Tim (Nov 9, 2011). “How the GOP Became the Party of the Rich”. Rolling Stone. Retrieved 2011-11-10.
  22. Jump up^ David Stockman: I Invest In Anything Bernanke Can’t Destroy, John Carney, CNBC, October 6, 2010
  23. Jump up^ Stockman, David (2013). The Great Deformation — the corruption of capitalism in America. PublicAffairs. p. 688. ISBN 978-1586489120.

External links

United States House of Representatives
Preceded by
Edward Hutchinson
Member of the U.S. House of Representatives
from Michigan’s 4th congressional district

1977–1981
Succeeded by
Mark Siljander
Political offices
Preceded by
Jim McIntyre
Director of the Office of Management and Budget
1981–1985
Succeeded by
Jim Miller
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Orson Scott Card — Xenocide — Videos

Posted on April 29, 2017. Filed under: American History, Art, Blogroll, Books, College, Crisis, Cult, Culture, Education, Entertainment, Fiction, Films, Food, Freedom, Friends, Genocide, government spending, history, Law, liberty, Life, Links, Literacy, Literature, Mastery, media, Movies, Movies, People, Philosophy, Photos, Police, Rants, Raves, Regulations, Religion, Religious, Speech, Strategy, Success, Terrorism, Video, War, Wisdom, Work, Writing | Tags: , , , , , , |

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Xenocide cover.jpg

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Orson Scott Card discusses the ‘Ender’s Game’ movie

Interview with Orson Scott Card

Orson Scott Card Interview HD

Published on Apr 19, 2015

World renowned, Orson Scott Card, author of the New York Times Bestseller and Hugo Award winner Ender’s Game and many more, joined Kimberly Quigley in her big red booth for a chat. Not only is he funny and kind but also very humble. His mind has created entire worlds for millions to enjoy. They sit and talk about how he got into writing, about his many novels, about the Ender phenomena, the movie and his future movie plans. Hear Orson’s wonderful advice for aspiring writers. He talks about this and more in this fun half hour interview. Get to know the amazing Orson Scott Card, on The Red Booth!

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Creative education–how to keep the spark alive in children and adults | Orson Scott Card | TEDxUSU

Published on Dec 6, 2014

This talk was given at a local TEDx event, produced independently of the TED Conferences. Orson Scott Card discusses the importance of creativity and how it can be fostered.

Orson Scott Card is the author of the novels Ender’s Game, Ender’s Shadow, and Speaker for the Dead, which are widely read by adults and younger readers, and are increasingly used in schools. His most recent series, the young adult Pathfinder series (Pathfinder, Ruins, Visitors) and the fantasy Mithermages series (Lost Gate, Gate Thief), are taking readers in new directions. Besides these and other science fiction novels, Orson writes contemporary fantasy (Magic Street, Enchantment, Lost Boys), biblical novels (Stone Tables, Rachel and Leah), the American frontier fantasy series The Tales of Alvin Maker (beginning with Seventh Son), poetry (An Open Book), and many plays and scripts, including his “freshened” Shakespeare scripts for Romeo & Juliet, The Taming of the Shrew and The Merchant of Venice. Orson was born in Washington and grew up in California, Arizona, and Utah. He served a mission for the LDS Church in Brazil in the early 1970s. Besides his writing, he teaches occasional classes and workshops and directs plays. He frequently teaches writing and literature courses at Southern Virginia University. Orson currently lives in Greensboro, North Carolina, with his wife, Kristine Allen Card, where his primary activities are writing a review column for the local Rhino Times and feeding birds, squirrels, chipmunks, possums and raccoons on the patio.

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Xenocide

From Wikipedia, the free encyclopedia
Xenocide
Xenocide cover.jpg

Cover of first edition (hardcover)
Author Orson Scott Card
Country United States
Language English
Series Ender’s Game series
Genre Science fiction
Published 1991 (Tor Books)
Media type Print (Hardcover, Paperback & ebook)
Pages 592 pp
ISBN 0-312-85056-5
OCLC 22909973
813/.54 20
LC Class PS3553.A655 X46 1991
Preceded by Speaker for the Dead
Followed by Children of the Mind

Xenocide (1991) is the third science fiction novel in the Ender’s Game series of books by Orson Scott Card. It was nominated for both the Hugo and Locus Awards for Best Novel in 1992.[1] The title is a combination of ‘xeno-‘, meaning alien, and ‘-cide’, referring to the act of killing; altogether referring to the act of selectively killing populations of aliens, a play on genocide.

Plot summary

On Lusitania, Ender finds a world where humans and pequeninos and the Hive Queen could all live together; where three very different intelligent species could find common ground at last. Or so he thought.

Lusitania also harbors the descolada, a virus that kills all humans it infects, but which the pequininos require in order to become adults. The Starways Congress so fears the effects of the descolada, should it escape from Lusitania, that they have ordered the destruction of the entire planet, and all who live there. With The Fleet on its way, a second xenocide seems inevitable.[2]

Lusitania

Following the events of Speaker for the Dead, a group of characters are depicted living as members of a Brazilian Catholic human colony on Lusitania, a unique planet inhabited by the only other two known species of sentient alien life: the Pequeninos “little ones” and the Hive Queen. The pequeninos are native to the planet, while the Hive Queen was transplanted to this world by Ender, partly in penance for his near-total destruction of her Formic species in Ender’s Game.

The Lusitanian ecosystem is pervaded by a complex virus, dubbed ‘Descolada’ (Portuguese for “no longer glued”) by humans. The Descolada breaks apart and rearranges the basic genetic structure of living cells. It is extremely adaptable to any species or form of known life, and easily transmissible. The native pequeninos and other life that survived on Lusitania after the Descolada’s introduction to the planet thousands (or millions) of years ago are adapted to it. As a result of the deadly virus, the Lusitanian ecosystem is severely limited. Staying alive on Lusitania takes immense effort and research on the part of the Hive Queen and the humans, as they are not adapted to the descolada. Near the end of the story, it is revealed the Descolada is possibly an artificially engineered virus designed to terraform planets, but the original creators of the virus are unknown, and there remains a slim chance it evolved naturally.

After the rebellion of the small human colony on Lusitania in Speaker for the Dead to protect the future of the intelligent alien species, Starways Congress sends a fleet to Lusitania to regain control, which will take several decades to reach its destination. Valentine Wiggin, under her pseudonym Demosthenes, publishes a series of articles revealing the presence of the “Little Doctor” planet-annihilating weapon on the Fleet. Demosthenes calls it the “Second Xenocide,” as using the weapon will result in the obliteration of the only known intelligent alien life. She also claims it to be a brutal crackdown of any colony world striving for autonomy from Starways Congress. Public anger spreads through humanity, and rebellions nearly ensue on several colonies.

After quelling much public discontent, Starways Congress finishes their analysis of the situation while the fleet is en route. Fearing the Descolada virus, further rebellions by colony worlds, and other possible unknown political motives, Starways Congress attempts to relay an order to the fleet to annihilate Lusitania upon arrival. After conferring with friends on whether a cause is worth dying for, Jane (a compassionate AI living in the interstellar ansible communication network) shuts off transmissions to the fleet to block the order. As a consequence of this action, she risks her eventual discovery and death, should the government shut down and wipe the interplanetary network. No known smaller computer system can house her consciousness.

On Lusitania itself, Ender attempts to find solutions to the looming catastrophes of the Congressional fleet, Descolada virus, and conflicts among the humans and intelligent alien species. Much on Lusitania centers around the Ribeira family, including Ender’s wife Novinha and her children. Novinha and Elanora, the mother-daughter team responsible for most of the biological advances countering the complex Descolada virus, are unsure if they can manufacture a harmless replacement virus. Conflicts arise on whether they should even do so, since the Descolada is intrinsically tied in with the life cycles of all Lusitanian organisms and may even be sentient itself. In addition, to try to devise methods to escape the planet, Lusitania’s leading, troublemaking physicist Grego is persuaded by Ender to research faster-than-light travel, despite Grego scoffing at the idea. The third biologista of the family, Quara, is convinced that the Descolada is an intelligent, self-aware species, and deserves attempts from the humans for communication and preservation. An additional sibling and Catholic priest, Quim (Father Estevão), is determined to use faith and theology to head off another form of xenocide: a group of warmongering Pequenino wish to wipe out all Earthborn life via starship, carrying the deadly Descolada within them.

World of Path

Starways Congress wants its fleet back. After all else fails, it sends the dilemma of the fleet’s impossible disappearance to several citizens of the world of Path, a cultural planetary enclave modeled on early China. Path’s culture centers on the godspoken – those who hear the voices of the gods in the form of irresistible compulsions, and are capable of significantly superior intelligence. It later becomes clear that the godspoken of Path are victims of a cruel government project: granted great intelligence by genetic modification, they were also shackled with a form of obsessive-compulsive disorder to control their loyalty. The experiment is set in a culture bound by five dictates – obey the gods, honor the ancestors, love the people, serve the rulers, then serve your self. This is a further safeguard against rebellion. The superintelligent godspoken are considered the most devout and holy of all citizens, and any disloyal thoughts in a godspoken’s mind are immediately suppressed by overwhelming obsessive-compulsive behavior, believed to be a sign from the gods the thoughts are wrong. The most respected godspoken on Path is Han Fei-Tzu, for devising a treaty to prevent the rebellion of several colony worlds after the articles published by Demosthenes. Great things are expected of his daughter and potential successor Han Qing-jao, “Gloriously Bright”. While doubting the existence of the gods himself, Han Fei-Tzu promised his dying wife he would raise Qing-jao with an unwavering belief in the godspoken. The two of them are tasked by Starways Congress with deciphering the disappearance of the Lusitania Fleet. Han Qing-jao’s secret maid, Si Wang-mu, aids her in this task, her intelligence (partially) unfettered by the rigid caste system.

The young and naive Qing-jao eventually traces the identity of Demosthenes. Discovering that Demosthenes is Valentine Wiggin, Ender’s sister – but that Valentine has been on a starship en route to Lusitania for the last thirty years – Qing-Jao concludes that the only possible explanation is advanced computer software closely tied to the communication network. This software must be hiding Demosthenes and publishing her work, while also causing the disappearance of the Fleet. All but discovered, Jane reveals herself to Han Fei-tzu, Han Qing-jao and Si Wang-mu, telling them about their genetic slavery and begging forbearance on their report to Starways Congress.

Already harboring suspicions about the godspoken’s condition, Han Fei-tzu accepts the news of Congress’s atrocity, as does Si Wang-mu, but his daughter Han Qing-jao clings to her belief that Demosthenes and Jane are enemies of the gods. Feeling betrayed by her father, who is violently incapacitated by OCD from the disloyal thoughts, Qing-jao argues with Jane. Jane threatens shutting off all communications from Path, but Si Wang-mu realizes this would eventually lead to the planet’s destruction by Starways Congress. Understanding Jane to be truly alive and compassionate, through tears Si Wang-mu states Jane will not block the report. However, Qing-jao compares Jane to the servants in Path’s caste system, merely a computer program designed to serve humans, containing neither autonomy nor awareness.

Knowing she has exhausted her last possibilities of stopping Qing-jao, Jane sacrifices her future and life, unwilling to bring harm to Qing-jao or the people of Path. A triumphant Qing-jao reports the knowledge of Demosthenes, Jane, and the fate of the Fleet to Starways Congress. Qing-jao recommends a coordinated date set several months from the present, to prepare the massive undertaking of setting up clean computers across the interplanetary network, after which the transition to a new system will kill Jane and allow Congress full control again. Allowing the message to be sent, Jane restores communication with the Fleet, and Congress re-issues the order for the Fleet to obliterate Lusitania.

Han Fei-tzu recovers from the incapacitation of his OCD, despairing over his daughter’s actions, and his unwitting aid in deeply brainwashing her to serve Congress. He and Si Wang-mu assist Jane and those on Lusitania in finding solutions to their impending catastrophes. Planter, a Pequenino on Lusitania, offers his life for an experiment to determine whether the Descolada gives Pequeninos sentience, or if they have the ability innately. Eventually, Elanora Ribeira is able to come up with a possible model for a “recolada:” a refit of the Descolada that allows the native life to survive and retain self-awareness, but doesn’t seek to kill all other life forms. With the available equipment, however, the recolada is impossible to make, and they are running out of time against the soon-to-arrive Fleet.

Outside

While this research takes place, tragedies occur on Lusitania. Father Estevão Ribeira, the priest attempting to sway a distant warmongering sect of the Pequeninos from their goal of attacking humanity, is killed by the Fathertree Warmaker, who took Quim hostage and denied him the food with the anti-descolada chemicals, so the descolada infected and killed him on the 7th day of being hostage. Grego Ribeira spurs a riot of humans to burn down the warmaker’s forest, but the violent mob gets out of his control, and rampages through the neighboring Pequenino forest instead, massacring many of its inhabitants – the original friends and allies of humanity. Under the terms of the treaty with Pequeninos, the Hive Queen is brought in to hold the peace, setting a perimeter guard of hive drones around the human colony and preventing further escalation of violence between the two groups. Grego is locked in jail, despite eventually stepping between the surviving Pequeninos and his own riot. The town realizes their horrific rage, and constructs a chapel surrounding the fallen priest’s grave, trying to find penance for their actions.

Finally, a breakthrough is made. Knowing the Ansible communication network allows instantaneous transfer of information, and through knowledge of how the Hive Queen gives sentience to child queens, Jane, Grego, and Olhado discover the “Outside”. The Outside is a spacetime plane where aiúas initially exist. (Aiúa is the term given to the pattern defining any specific structure of the universe, whether a particular atom, a star, or a sentient consciousness.) Formic hive queens are called from Outside after birth, giving awareness to the new body. Jane is able to contain within her vast computing power the pattern defining the billions of atoms and overall structure comprising a simple “starship” (little more than a room), with passengers included, and take them Outside. By bringing them Outside, where relative location is nonexistent, then back “Inside” at a different spot in the physical universe, instantaneous travel has been achieved, finally matching the instantaneous communication of the Ansibles and Formics. They quickly arrange to take Ender, Ela, and Miro to Outside. While Ela is Outside, she is able to create the recolada virus, which is a safe replacement of the descolada, and a cure to the godspoken genetic defect. Miro envisions his body as it was before he was crippled by paralysis, and upon arrival in the Outside, his consciousness is contained within a new, restored body. Ender discovers, however, the surreal unwitting creation of a new “Valentine” and new “Peter Wiggin” from his subconscious, who embody idealized forms of his altruistic and power-hungry sides.

The recolada begins its spread across Lusitania, converting the formerly lethal virus into a harmless aid to native life. The cure to the people of Path’s genetic-controlling defect is distributed, yet Han Fei-tzu is tragically unable to convince his daughter Qing-jao this was the true course of action. Confronted with the possibility of being lied to all her life and dooming many sentient species to destruction, or an alternative of believing all she ever loved and trusted has betrayed her – Demosthenes, her father, her friend, her world. Qing-jao instead continues her godspoken rite of woodgrain tracing until her death and is honored by those on Path who still believe in the gods as the last true godspoken. She is elevated to god status after her death. Si Wang-mu sets off with Peter to take control over Starways Congress to stop the Fleet closing in on Lusitania. The new Valentine-persona journeys to find a planet to which the population of Lusitania can evacuate. The stage is set for the final book of the four-part series, Children of the Mind.

Connection to “Gloriously Bright”

Parts of “Gloriously Bright” from the January 1991 issue of Analog Science Fiction and Fact are republished in Xenocide as parts of Chapters 1, 3, 5, 7, 9, and 11.[3]

See also

References

External links

https://en.wikipedia.org/wiki/Xenocide

Orson Scott Card

From Wikipedia, the free encyclopedia
Orson Scott Card
Orson Scott Card at BYU Symposium 20080216 closeup.jpg

Born August 24, 1951 (age 65)
Richland, Washington
Residence Greensboro, North Carolina
Nationality American
Alma mater Brigham Young University
University of Utah (M.A.)
University of Notre Dame (1980s graduate student)
Occupation Author, critic, playwright / script writer, poet, public speaker, essayist, political activist, Prof. of Writing and Literature[1]
Notable work Ender’s Game series,
The Tales of Alvin Maker
Style Science fiction, fantasy, thriller, horror, historical fiction and fantasy and biblical fiction, LDS fiction
Board member of Public television station UNC-TV(2013–present)[2]
National Organization for Marriage (2009–2013)[3]
Spouse(s) Kristine Allen Card
Awards Selected list:
Hugo Award (Ender’s Game, 1986
Speaker for the Dead, 1987
How to Write Science Fiction and Fantasy, 1991)

Nebula Award (Ender’s Game,1986
Speaker for the Dead, 1987
“Eye for Eye,” 1988)
Website www.hatrack.com
 
Signature
Signature Orson Scott Card.svg

Orson Scott Card (born August 24, 1951) is an American novelist, critic, public speaker, essayist, and columnist. He writes in several genres but is known best for science fiction. His novel Ender’s Game (1985) and its sequel Speaker for the Dead (1986) both won Hugo[5][6] and Nebula Awards,[5][7]making Card the only author to win both science fiction’s top U.S. prizes in consecutive years.[8][9] A feature film adaptation of Ender’s Game, which Card co-produced, was released in late October 2013 in Europe and on November 1, 2013, in North America.[10]

Card is a professor of English at Southern Virginia University,[11] has written two books on creative writing, hosts writing bootcamps and workshops, and serves as a judge in the Writers of the Future contest.[12] A great-great-grandson of Brigham Young, Card is a practicing member of The Church of Jesus Christ of Latter-day Saints (LDS Church). In addition to producing a large body of fiction works, he has also offered political, religious, and social commentary in his columns and other writing.

Early life

Card is the son of Willard Richards Card and Peggy Jane (née Park), the third of six children and the older brother of composer and arranger Arlen Card.[13][14][15] Card was born in Richland, Washington, and grew up in Santa Clara, California as well as Mesa, Arizona and Orem, Utah. He served as a missionary for the LDS Church in Brazil and graduated from Brigham Young University (BYU) and the University of Utah; he also spent a year in a Ph.D. program at the University of Notre Dame.

For part of the 1970s Card worked as an associate editor of the Ensign, an official magazine of the LDS Church.[16]

Card lives in Greensboro, North Carolina,[13] a place that has played a significant role in Ender’s Game and many of his other works.

Fiction

Card began his writing career primarily as a poet, studying with Clinton F. Larson at BYU. During his studies as a theater major, he began “doctoring” scripts, adapting fiction for readers theater production, and finally writing his own one-act and full-length plays, several of which were produced by faculty directors at BYU. He also explored fiction writing, beginning with stories that eventually evolved into The Worthing Saga.

After returning to Provo, Utah from his LDS mission in Brazil, Card started the Utah Valley Repertory Theatre Company, which for two summers produced plays at “the Castle”, a Depression-era outdoor amphitheater behind the state psychiatric hospital in Provo; his company’s were the first plays ever produced at the Castle. Meanwhile, he took part-time employment as a proofreader at BYU Press, then made the jump to full-time employment as a copy editor. In 1976, in the midst of a paid role performing in the church’s musical celebrating America’s Bicentennial, he secured employment as an assistant editor at the Ensign, and moved to Salt Lake City. It was while working at Ensign that Card published his first piece of fiction. His short story “Gert Fram” appeared in the July 1977 fine arts issue of that magazine under the pseudonym Byron Walley.

Science fiction

He wrote the short story “Ender’s Game” while working at the BYU press, and submitted it to several publications. The idea for the later novel of the same title came from the short story about a school where boys can fight in space. It was eventually purchased by Ben Bova at Analog Science Fiction and Fact and published in the August 1977 issue. Meanwhile, he started writing half-hour audioplays on LDS Church history, the New Testament, and other subjects for Living Scriptures in Ogden, Utah; on the basis of that continuing contract, some freelance editing work, and a novel contract for Hot Sleep and A Planet Called Treason, he left Ensign and began supporting his family as a freelancer.

He completed his master’s degree in English at the University of Utah in 1981 and began a doctoral program at the University of Notre Dame, but the recession of the early 1980s caused the flow of new book contracts to temporarily dry up. He returned to full-time employment as the book editor for Compute! magazine in Greensboro, North Carolina, in 1983. In October of that year, a new contract for the Alvin Maker “trilogy” (now up to six books) allowed him to return to freelancing.

Ender’s Game and its sequel Speaker for the Dead were both awarded the Hugo Award and the Nebula Award, making Card the only author (as of 2015) to win both of science fiction’s top prizes in consecutive years. Card continued the series with Xenocide, Children of the Mind, Ender’s Shadow, Shadow of the Hegemon, Shadow Puppets, “First Meetings in the Enderverse“, Shadow of the Giant, Shadows in Flight, the 2007 release of A War of Gifts, and the 2008 release of Ender in Exile, a book that takes place after Ender’s Game and before Speaker for the Dead. Card has also announced his plan to write Shadows Alive, a book that connects the “Shadow” series and “Speaker” series together. He later also wrote the first formic war saga: Earth Unaware, Earth Afire, and Earth Awakens as a prequel to the Ender novels. This trilogy relays, among other things, the history of Mazer Rackham. In 2008 Card announced that Ender’s Game would be made into a movie, but that he did not have a director lined up (Wolfgang Petersen had previously been scheduled to direct the movie but subsequently moved on to other projects.) It was to be produced by Chartoff Productions, and Card was writing the screenplay himself.[17] The film was made several years later, and released in 2013, with Asa Butterfield in the title role and Gavin Hood directing.

Other works include the alternative histories The Tales of Alvin Maker, Pastwatch: The Redemption of Christopher Columbus, The Homecoming Saga, and Hidden Empire, a story about a near-future civil war in the United States, based on the Xbox Live Arcade video game Shadow Complex. He collaborated with Star Wars artist Doug Chiang on Robota and with Kathryn H. Kidd on Lovelock.

Other genres

He has since branched out into other areas of fiction with novels such as Lost Boys, Treasure Box and Enchantment. Other works include the novelization of the James Cameron film The Abyss, and the comic book Ultimate Iron Man for Marvel Comics’ Ultimate Marvel Universe series. Outside the world of published fiction, Card contributed dialog to at least three video games: Loom, The Secret of Monkey Island and The Dig in the early 1990s.[18]

In 1983 Card published the novel Saints, a historical fiction based loosely on one of his ancestors and her experiences coming into the LDS Church during the early portion of its movement. It continues through her eyes into subsequent events up until the granting of Statehood to Utah.

In 2000, Card published the first novel in The Women of Genesis series. This series explores the lives of the principal women mentioned in the first book of the Bible and includes Sarah (2000), Rebekah (2002), and Rachel and Leah (2004).

In the fall of 2005, Card launched Orson Scott Card’s InterGalactic Medicine Show.[19] He edited the first two issues, but found that the demands of teaching, writing, and directing plays for his local church theater group made it impossible to respond to writers’ submissions in a timely manner; former Card student and experienced freelance writer and editor Edmund R. Schubert took over as editor on June 1, 2006.

The dialog and screenplay (but not the story) for the Xbox video game Advent Rising was written by Card and Cameron Dayton.[20]

In 2008, Card’s novella Hamlet’s Father, a retelling of Shakespeare‘s Hamlet, was published in the anthology The Ghost Quartet (Tor Books). The work re-interpreted all of the characters’ personalities and motivations.

Pseudonyms

Over the years Orson Scott Card has used at least seven pseudonyms.

The names Frederick Bliss and P.Q. Gump were used by Card when he was asked to write an overview of Mormon playwrights “Mormon Shakespeares: A Study of Contemporary Mormon Theatre” for Spring 1976 issue of Sunstone magazine. According to Card he used these pseudonyms because the article included a brief reference to himself and his play “Stone Tables”.[21]

The name Byron Walley was used by Card on his first published piece of fiction “Gert Fram” which appeared in the July 1977 fine arts issue of Ensign magazine. According to Card he used this name because he had a non-fiction article, “Family Art”, a poem, “Looking West”, and a short play, “The Rag Mission”, appearing in the same issue.[21] Card also used the name Byron Walley in stories he published in Friend magazine, New Era magazine and in the anthology Dragons of Darkness. Stories by Byron Walley include: “Gert Fram“, Ensign magazine, July 1977; “Bicicleta“, Friend magazine, October 1977; “The Best Family Home Evening Ever“, Friend magazine, January 1978; “Billy’s Box“, Friend magazine, February 1978; “I Think Mom and Dad Are Going Crazy, Jerry“, New Era magazine, May 1979; and “Middle Woman“, Dragons of Darkness, Ace Books, 1982.

The name Brian Green was also used by Card in the July 1977 fine arts issue of Ensign magazine. He used this name for his short play “The Rag Mission” because he had three other pieces appearing in the same issue.[21]

The name Dinah Kirkham was used to write the short story “The Best Day“, in 1983.[22]

The name Noam D. Pellume was used by Card for his short story “Damn Fine Novel” which appeared in the October 1989 issue of The Green Pages.[23]

Card wrote the novel Zanna’s Gift (2004) under the pen name Scott Richards, saying, “I was trying to establish a separate identity in the marketplace, but for various reasons the marketing strategy didn’t work as we’d hoped.”[24]

On writing

Teaching

In 2005, Card accepted a permanent appointment as “distinguished professor” at Southern Virginia University in Buena Vista, Virginia, a small liberal arts college run according to the principles of The Church of Jesus Christ of Latter-day Saints. Card has cited his frustration with the dismal teaching methodology for creative writing in most universities as a reason for accepting this position, along with his desire to teach the techniques of effective fiction writing to writers whose values are more congruent with his own.[11] Card has worked closely with colleagues to develop ways to educate aspiring writers and has published two books on the subject. He was eager for the opportunity to apply these techniques in a university environment—his assorted workshops did not allow the follow-through he desired. After being deeply moved by stories of his students’ parents in some of their essays, he decided to stop teaching regularly at the university to spend time with his youngest child who still lives at home.[25][non-primary source needed] Card returned to teaching for the spring semester of 2009.

Books on writing

Card has written two books on the subject of creative writing – Characters and Viewpoint, published in 1988, and How to Write Science Fiction and Fantasy, published in 1990. He was also a co-writer for How to Write a Million (though his contribution is actually a reprint of an earlier work).

Card also offered advice about writing in an interview in Leading Edge #23 in 1991.

Writers of the Future

Card serves as a judge in Writers of the Future,[12] a science fiction and fantasy story contest for amateur writers. It originated in the early 1980s by L. Ron Hubbard, a science fiction writer and the founder of the Church of Scientology, and continues to be funded and organized by Author Services Inc., an entity that manages Hubbard’s literary work.

Children’s books

Card won the ALA Margaret Edwards Award in 2008 for his contribution in writing for teens, selected by a panel of YA librarians.[26] “What have I done that made some wonderfully deluded people think that I should get the [award] for lifetime achievement in writing young adult fiction?” he asked in his address, and asserted that “There is no such thing as children’s literature.” Furthermore:[27]

I have not worked with YA editors; my work has never been marketed that way until Tor put a YA cover and a new ISBN on Ender’s Game — fifteen years after the book first came out, and long after it had become popular with young readers. Ender’s Game was written with no concessions to young readers. My protagonists were children, but the book was definitely not aimed at kids. I was perfectly aware that the rule of thumb for children’s literature is that the protagonist must be a couple of years older than the target audience. You want ten-year-old readers, you have a twelve-year-old hero.

At the beginning of the book, Ender is six. Who, exactly, is the target audience?

Poetry

Card created a website, Strong Verse that publishes poetry from authors living and dead with the aim of showcasing works that present a clear message in clear language. The following motto appears on the website’s header: “Good poetry is meant to be understood, not decoded.”[28]

Opinion

Since 2001, Card’s commentary[29] includes the political columns “War Watch”, “World Watch”, or “Civilization Watch” (depending on Card’s topic) and the column “Uncle Orson Reviews Everything,” all published at the Greensboro Rhinoceros Times. The last-named column features personal reviews of movies, books, and restaurants in the greater Greensboro area, in addition to a variety of other topics.[30] The column also later appears on his website, Hatrack River. Since 2008 Card has written a column for the Mormon Times.

Politics

Card’s vocal opposition to same-sex marriage and other views on homosexuality led to a boycott of the film version of Ender’s Game[31] – a development which itself received criticism.[32] Owing to political developments, by the early 2010s Card believed the question of U.S. legalization of same-sex marriage moot.[33]

Describing himself as a political liberal[34] and moral conservative,[35] Card’s ideals concerning society—as well as foundational themes within his fiction—are described as communitarian.[34][36][37] In 2000, Card said, “Most of the program of both the left and the right is so unbelievably stupid it’s hard to wish to identify myself with either. But on economic matters, I’m a committed communitarian. I regard the Soviet Union as simply state monopoly capitalism. It was run the way the United States would be if Microsoft owned everything. Real communism has never been tried! I would like to see government controls expanded, laws that allow capitalism to not reward the most rapacious, exploitative behavior. I believe government has a strong role to protect us from capitalism.”[38]

A vocal supporter of the U.S.’s War on Terror,[39][40] according to Salon, Card is close to neoconservative concerning foreign policy issues.[41]

Views on U.S. presidential politics

A member of the U.S. Democratic Party since 1976,[42] Card supported Republican presidential candidates John McCain in 2008[43] and Newt Gingrich.[44]

In an August 2013 essay, he presented as an experiment in fictional writing of “The game of Unlikely Events”,[45] Card described an alternative future in which President Barack Obama ruled as a “Hitler– or Stalin-style dictator” with his own national police force of young unemployed men; Obama and his wife Michelle would have amended the U.S. Constitution to allow presidents to remain in power for life, as in Nigeria, Zimbabwe, and Hitler’s Germany.[46][47] Card’s essay drew criticism, especially for alleged insensitivity in its reference to urban gangs.[48][49][50]

Views about homosexuality

Card has publicly declared his opposition to homosexuality and same-sex marriage.[41][51] In a 1990 essay he wrote that the laws prohibiting homosexual behavior should remain on the books and be enforced in order to “send a message” that those who break those laws “cannot be permitted to remain as acceptable, equal citizens”.[41][52] In May 2013, however, Card wrote that since the US Supreme Court had ruled those laws unconstitutional in 2003, he has “no interest in criminalizing homosexual acts”.[53]

In a 2008 opinion piece in the Mormon church’s newspaper he wrote that “no matter how close the bonds of affection and friendship might be” for a same-sex couple, their relationship will never be “the same as the coupling between a man and a woman”. He additionally stated that any government attempting to change the definition of marriage is his “mortal enemy” and that he would “act to destroy that government and bring it down”.[54] In 2009 he joined the board of directors of the National Organization for Marriage, a group that campaigns against same-sex marriage,[41] but later resigned from the board in mid-2013.[31] Card has stated that there is “no need to legalize gay marriage”.[55]

Card has also expressed his opinion that paraphilia and homosexuality are linked. In 2004, he claimed that it’s a “myth that homosexuals are ‘born that way‘” and the “dark secret” of homosexuality was that it often resulted from “disturbing seduction”, “rape”, or child abuse.[31][41][55] Additionally, in Card’s 2008 novella Hamlet’s Father, which re-imagines the backstory of Shakespeare’s play Hamlet, Card was accused of directly trying to link the king’s pedophilia with homosexuality. The novella prompted public outcry and its publishers were inundated with complaints.[56][57] Trade journal Publishers Weekly criticized Card’s work, stating that the main purpose of it was to attempt to link homosexuality to pedophilia.[58] Card responded to the claim: “…[T]here is no link whatsoever between homosexuality and pedophilia in this book. Hamlet’s father, in the book, is a pedophile, period. I don’t show him being even slightly attracted to adults of either sex. It is the reviewer, not me, who has asserted this link, which I would not and did not make.”[57]

In 2013, Card was selected as a guest author for DC Comics‘s new Adventures of Superman comic book series,[59] but controversy over Card’s views on homosexuality led illustrator Chris Sprouse to leave the project[60] and DC Comics to put Card’s story on hold indefinitely.[61] A few months later an LGBT group, Geeks OUT!, proposed a boycott of the movie adaptation of Ender’s Game calling Card’s view anti-gay,[62][63] causing the movie studio Lionsgate to publicly distance itself from Card’s opinions.[64]

In July 2013, one week after the U.S. Supreme Court issued rulings in two cases that were widely interpreted as favoring recognition of same-sex marriages, Card wrote in Entertainment Weekly that the gay marriage issue is moot due to the Supreme Court’s decision on DOMA.[33] He further stated, “now it will be interesting to see whether the victorious proponents of gay marriage will show tolerance toward those who disagreed with them when the issue was still in dispute.”[33]

Religion

Card’s membership in The Church of Jesus Christ of Latter-day Saints has been an important facet of his life from early on. He is a great-great-grandson of Brigham Young, the second Latter-day Saint prophet, and all of Card’s ancestors for at least three generations have been members of the LDS Church. His ancestors include several other figures notable in the LDS Church, including the Cardston colony founder Charles Ora Card. As such, his faith has been a source of inspiration and influence for both his writing and his personal views.[14] Since 2008 Card has written a column of Latter-day Saint devotional and cultural commentary for the Sunday national edition of the Deseret News (formerly “the Mormon Times“).[65]

Personal life

Card (right) signing autographs at New York Comic Con in 2008

Card and his wife, Kristine, have had five children, each named after one or more authors he and his wife admire. Their children’s names are Michael Geoffrey (Geoffrey Chaucer), Emily Janice (Emily Brontë and Emily Dickinson), Charles Benjamin (Charles Dickens), Zina Margaret (Margaret Mitchell) and Erin Louisa (Louisa May Alcott). Charles, who had cerebral palsy, died shortly after his 17th birthday and their daughter Erin died the day she was born.[13] Card and his wife live with their youngest child, Zina, in Greensboro, North Carolina.[13]

The life of their son, Charles, influenced some of Card’s fiction, most notably the Homecoming series, Lost Boys and Folk of the Fringe. Their daughter, Emily, along with two other writers, adapted Card’s short stories “Clap Hands and Sing“, “Lifeloop” and “A Sepulchre of Songs” for the stage in Posing as People.[66]

In 2008, he appeared in the short film The Delivery, which starred his daughter, Emily. He plays an author reading an audiobook in this film, which won First Place in Fantasy at Dragon*Con Film Festival. He wrote an original story, “The Emperor of the Air,” specifically for the short film by Gabrielle de Cuir and Stefan Rudnicki.

Card is an avid fan of the science fiction television series Firefly and makes an appearance in the documentary Done the Impossible about Firefly fandom.

Card suffered a mild stroke on January 1, 2011, and was briefly hospitalized. He reported expecting to make a full recovery despite impairment of his left hand.[67][68]

Awards

The ALA Margaret A. Edwards Award recognizes one writer and a particular body of work for “significant and lasting contributions to young adult literature”. Card won the annual award in 2008, citing Ender’s Game (1985), which inaugurated the science fiction Ender Saga, and Ender’s Shadow (1999), the so-called parallel novel featuring another boy in the Battle School. According to the citation, the two boys’ “experiences echo those of teens, beginning as children navigating in an adult world and growing into a state of greater awareness of themselves, their communities and the larger universe.”[26] In the same year, Card won the Lifetime Achievement Award for Mormon writers (Whitney Awards).[69]

He has also won numerous awards for single works.

Works

In 1978, the Harold B. Lee Library acquired the Orson Scott Card papers, which included Card’s works, writing notes and letters, and in 2007 the collection was formally opened.[74][75][76]

See also

https://en.wikipedia.org/wiki/Orson_Scott_Card

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Totalitarians of Lying Lunatic Left Attempt to Suppress Speech of Conservatives, Libertarians, and Classical Liberals — Something New — Go On Offense And Attack The Collectivist Totalitarians — Battle For Berkeley — Berkeley Protesters Take the Pepsi Challenge — Why the Right Won — Chief of Police Orders Police Officers To Stand Down — Security Is The New Shut-Up — Shame On UC Berkeley — Videos

Posted on April 22, 2017. Filed under: American History, Blogroll, College, Communications, conservatives, Constitution, Corruption, Crime, Culture, Education, Freedom, history, Language, Law, liberty, Life, media, People, Philosophy, Photos, Police, Political Correctness, Politics, Radio, Rants, Raves, Raymond Thomas Pronk, Regulations, Speech, Strategy, Success, Television, Video, Welfare, Wisdom, Writing | Tags: , , , , , , , , , , , , , , , , , , , , , , |

 

Image result for berkely april 15, 2017Image result for berkely april 15, 2017Image result for berkely april 15, 2017Image result for berkely april 15, 2017Image result for cartoons berkely april 15, 2017Image result for berkely april 15, 2017Image result for cartoons berkely april 15, 2017Image result for berkely april 15, 2017Image result for cartoons berkely april 15, 2017Image result for berkely april 15, 2017

Berkeley Pro Free Speech Protesters Chase Out AntiFA

The Battle of Berkeley in 81 seconds

Berkeley Protesters Take the Pepsi Challenge

Antifa and UC Berkeley: LIVE with Tim Pool

CALLING OUT THE BERKELEY VIOLENCE

UNDERCOVER AS ANTIFA WITH JOEY SALADS

LEFT VS RIGHT DOUBLE STANDARDS IN MEDIA

UC Berkley Must Be Disciplined For Furthering Leftist Violence Against Conservatives

Battle of Berkeley: Why the Right Won

Published on Apr 17, 2017

Berkeley erupted into political violence on April 15th, 2017, with leftwing radicals attacking the Freedom Rally hosted by Trump supporters. The Antifa thugs were roundly defeated by the Freedom Rally attendees, but where did this violence start? I discuss the events that lead up to this day and uncover the progression of leftwing violence that’s destroying a city that once celebrated free speech.

Lauren Southern And The Madness Behind The Battle Of Berkeley

THE BEAUTIFUL LAUREN SOUTHERN; ProudBoys and Some Ugly Antifa

Battle of Berkeley 3 FULL DAY[ANTIFA Vs FREE SPEECH PROTESTERS]Patriots Day Rally Ft. Based Stickman

Trump Supporters chase Antifa down the street at FREE SPEECH Rally in Berkeley

Battle of Berkeley 3 as Antifa circled the park

2017 The Battle for Berkeley LARP!

Patriot’s Day Riot in the Streets

Mark Steyn Security is the new shutup to conservatives

Why UC Berkeley shouldn’t have canceled Ann Coulter’s speech

UC Berkeley Cancels Coulter Appearance Over Security Concerns

Conservative Commentator Ann Coulter To Speak At UC Berkeley

Did Mark Levin Get Berkeley To Reverse Decision To Cancel Speech By Ann Coulter?

Ben Shapiro Interviews Based Stickman on Berkeley Riots & Ann Coulter being BANNED

Ben Shapiro interviews Ann Coulter; Adios America; 7/13/2015; C-Span

UC Berkeley Presses Campus Republicans To Cancel Another Conservative Speaker

WARNING:TRUMP SUPPORTERS ATTACKED AT BERKELEY BY ANTI TRUMP PROTESTERS

Free Speech Battle For Berkeley, California! | Lauren Southern and Stefan Molyneux

Berkeley Mayor Connected to Antifa

Tucker Carlson Has UC Berkeley Protest Leader Yvette Felarca Explain Fascism

Lauren Southern Coverage of Antifa vs Trump Supporters Battle

Berkeley April 15,Based stick man Antifa smashing

ANTIFA VS America Compilation

Antifa Reddit Admits They Lost Berkeley Battle with Trump Supporters

Berkeley April 15,BAMN leader Yvette Felarca assaults patriots

Berkeley Leftists Riot Against Milo (Mini Documentary: Arrest Yvette Felarca Part 2)

Handicap Senior Citizen U.S Military Vet Stands Up & Cucks Antifa

Is It Wrong To Bash Antifa Leftist Scum?

Berkeley Police Refuse To Stop the Riots – When Told People are Being Beaten, Officer Says “…and?”

Hannity, Alt Left Pile On, Mayhem in Berkeley, Pres Obama’s Failures

Does Free Speech Offend You?

Ann Coulter: Attorney General Jeff Sessions Needs to Investigate UC Berkeley For Cancelling Speech

Ann Coulter rejects Berkeley’s proposal to reschedule speech

Berkeley reschedules Coulter speech after backlash

Ann Coulter Discusses Berkeley w/ Prager

Ben Shapiro on Free Speech, College Campuses, and The Regressive Left

Ben Shapiro – Practical Tactics For Fighting The Left

Thomas Sowell — Dismantling America

TAKE IT TO THE LIMITS: Milton Friedman on Libertarianism

One World Government & Collectivism – G. Edward Griffin

The Quigley Formula – G. Edward Griffin lecture

The Mainstream Media Are Enemies of Freedom, Agents of Tyranny and Must Be Overthrown

Super rich are in a conspiracy to rule the world – G. Edward Griffin – 2007

Antifa and Conservatives Throw Down At ‘Battle Of Berkeley’…

battle of berkeley
In the course of history, there have been many great battles. Thermopylae. Gettysburg. Tupac and Biggie. The forces of good and douchebag have long utilized beating the crap out of each other to resolve their grievances. Well, last weekend, yet another battle was had. Conservative and leftist blood alike was shed at what shall henceforth be referred to as the Battle of Berkeley

For the third time this year, Trump supporters and Antifa clashed on the streets of Berkeley, California. The two forces met Saturday during the pro-Trump Patriot Day rally.

Berkeley Police have arrested at least 15 people this morning and afternoon, after antifascists met Trump supporters at a pro-Trump rally. Police attempted to maintain order with poles and fence mesh, but the barriers did not stop the two sides from violently engaging.

Trump supporters had organized a Patriot Day rally, starring Lauren Southern, a former reporter for conservative Canadian outlet The Rebel Media and Kyle Chapman, a man who achieved internet stardom as “Based Stickman” after assaulting a member of Antifa with a stick at the March 4 scuffle in Berkeley, among others.

Berkeley police have confiscated banned items such as knives, flagpoles, and sticks used as weapons.

https://www.louderwithcrowder.com/antifa-conservatives-battle-of-berkeley/

Berkeley Mayor Is Member of Antifa Facebook Group that Organized Riots

Berkeley Mayor Jesse Arreguin is a member of the anti-fascist Facebook group, By Any Means Necessary, which orchestrated the riots that occurred ahead of a scheduled lecture by Milo Yiannopoulos.

Berkley Mayor Jesse Arreguin was revealed to be a member of the anti-fascist group, By Any Means Necessary (BAMN), on Facebook. BAMN orchestrated the violence that shut down a scheduled lecture at UC Berkeley featuring Milo Yiannopoulos in early 2017. Arreguin is allegedly also friends with BAMN leader, Yvette Felarca, on Facebook.

They were also involved in the violent clashes earlier this month.

Felarca defended the violence that occurred ahead of Yiannopoulos’ scheduled event in a local television interview following the riots.

BAMN was investigated for engaging in terrorist activities in 2005 by the FBI. In 2009, the Department of Defense classified the group’s activities as “low-level terrorism.” In June 2016, BAMN led a violent counter-protest outside a white nationalist rally that resulted in ten people being hospitalized with stab wounds.

Often described as a “militant left-wing” activist group, BAMN frequently engages in violent forms of protests. A Berkeley newspaper noted in 2001 that the group was a front for an “an obscure Detroit-based Trotskyist political party called the Revolutionary Workers League.”

Breitbart News has reached out to Mayor Arreguin for comment.

Tom Ciccotta is a libertarian who writes about economics and higher education for Breitbart News. You can follow him on Twitter @tciccotta or email him at tciccotta@breitbart.com

http://www.breitbart.com/tech/2017/04/21/berkeley-mayor-is-member-of-antifa-facebook-group-that-organized-riots/

Antifa wants combat training and firearms after losing the ‘Battle for Berkeley’

Brandon Morse

Antifa wants combat training and firearms after losing the ‘Battle for Berkeley’

Antifa members have begun discussions about arming themselves with better training and firearms after they were routed by Trump supporters during the “Battle of Berkeley” in California.

Last week supporters of President Donald Trump clashed with members of the leftist group known as Antifa (short for anti-fascist) in Berkeley California. The meeting of the two groups soon erupted in violence, with Antifa using mace, M80’s, and various other weapons to attack Trump supporters.

According to Rebel Media’s Lauren Southern, Trump supporters were told by police not to bring any weapons, as police would protect them. Upon Anitfa’s arrival, the police retreated, leaving the Trump supporters to utilize whatever weapons they could get their hands on. Regardless, the Trump supporters routed Antifa after one of their members threw a smoke bomb, not realizing the wind was blowing in Antifa’s direction.

This loss prompted Antifa members to begin discussion about how they could better prepare themselves for future skirmishes against Trump supporters.

In the subreddit r/anarchism, one Anitfa member acknowledged the loss, and suggested that members find a way to become “better organized and better trained.” Another member agreed, saying that too many of their “comrades” went into battle “no combat training,” and suggested they start “seminars or something of that sort.”

This conversation continued, with suggestions for better equipment such as helmets and padding over the typical hoodie and facemask being worn. Another person on this r/anarchism thread suggested they rally behind a leader who can organize and direct actions. The conversation soon turned to weapons, however, and one member in particular suggested they bring firearms.

Not getting disarmed is a big part of the problem, yes, but we need more than flags and bats. We need to take notes from the John Brown Gun Club and get firearms and training. I know getting firearms in states and cities we have a presence in is usually a hassle, but even handguns would help. It would certainly put a psychological element in while holding fash back. Who do you think a fascist is more afraid of? People with only flags and bats, or people with flags, bats, and guns?”

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Antifa is known for their willingness to use violence and intimidation to silence political, and ideological opponents. An Antifa chapter at Clemson University, known as “Upstate Antifa” have made an effort to justify the violence and destruction committed against what they loosely base as “Nazis” and “fascists.”

Recently, Antifa members inadvertently turned on one of their own after his mask was forcibly removed, spraying him with pepper spray, and hitting him with a skateboard as they retreated from pro-Trump marchers.

Another instance of violence occurred while Trump supporters and Antifa were engaging in trash talk. One of Antifa’s members used a bike lock to strike a Trump supporter in the head without warning, causing him to bleed a good deal from his scalp.

http://www.theblaze.com/news/2017/04/21/antifa-wants-combat-training-and-firearms-after-losing-the-battle-for-berkely/

Conservative group threatens UC Berkeley over Ann Coulter appearance

Paige St. JohnContact Reporter

A conservative group on Friday threatened to take legal action against UC Berkeley if student sponsors are not allowed to pick the date and location for an appearance by commentator Ann Coulter.

Coulter had been scheduled to speak on the demonstration-weary campus on April 27, but Berkeley officials refused permission, citing safety concerns. Amid public criticism, the administration on Thursday agreed to set the event for May 2, at midday, in a science hall away from the central campus.

“The university’s actions violate fundamental principles of free speech, equal protection and due process guaranteed by the United States Constitution,” a letter from lawyers representing the conservative outreach group Young America’s Foundation warned.

It called Berkeley’s offer “transparently insincere” — noting that the new date falls during “dead week,” a time when most students are studying for final exams.

“UC Berkeley may not censor speech its administrators plainly disfavor, simply because a potential mob shares the administrators’ distaste,” the letter said.

In response, Berkeley answered that it does not have a “protectable” venue available on April 27 and raised concern about Coulter’s “disregard” for what police believe is required to keep her appearance safe.

“The Constitution permits the university to take such steps to protect public safety while facilitating expressive activities, and that is exactly what we are doing,” officials said in a prepared statement.

Coulter, who had been invited to speak about immigration, used her Twitter account Thursday to declare she would speak at Berkeley on April 27, “as I was invited to do and have a contract to do.”

Although the student groups hosting her appearance are the Berkeley College Republicans and BridgeCal, the contracted sponsor for the event is Young America’s Foundation.

Berkeley spokesman Dan Mogulof said administrators learned of Coulter’s planned arrival only after that contract was signed, preventing an assessment of how to avoid a replay of the violence that disrupted a scheduled Milo Yiannopoulos appearance at Berkeley on Feb. 1.

Large crowds swarmed the campus where the right-wing provocateur was to appear, and masked demonstrators in black garb tore down police barricades, smashed windows and set off explosives.

Since then, the university town has witnessed two demonstrations held by alt-right organizations that led to violent clashes.

“We were disappointed we couldn’t make an event work,” Mogulof said. “We believe it is important to expose our students to a diverse array of perspectives. … [They] can’t be educated in an echo chamber.”

http://www.latimes.com/local/california/la-me-berkeley-coulter-20170421-story.html

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Kyle Mills — Sphere of Influence — Videos

Posted on April 8, 2017. Filed under: Art, Blogroll, Books, Business, Communications, Crime, Culture, Drug Cartels, Employment, Entertainment, Federal Bureau of Investigation (FBI), Fiction, Fraud, Homicide, Law, liberty, Life, Links, Literacy, media, Money, People, Philosophy, Photos, Politics, Psychology, Wisdom, Writing | Tags: , , , , , , , , , |

Image result for Kyle Mills books sphere of Influence

Image result for Kyle Mills books sphere of Influence

“Order to Kill” by Kyle Mills

Elliot In The Morning: Kyle Mills (Part 1 of 2) [INTERVIEW]

Elliot In The Morning: Kyle Mills (Part 2 of 2) [INTERVIEW]

Order to Kill by Kyle Mills and Vince Flynn Audiobook Excerpt

Kyle Mills (author)

From Wikipedia, the free encyclopedia
For the New Zealand cricketer, see Kyle Mills.
Kyle Mills
Born 1966
Occupation Novelist
Genre Political thriller
Website
kylemills.com

Kyle Mills (born 1966) is an American writer of thriller novels including Rising Phoenix, Fade, and The Second Horseman. Several of his books (Rising Phoenix, Storming Heaven, Sphere of Influence, Free Fall and Darkness Falls) include a character Mark Beamon, an FBI special agent. He also wrote The Ares Decision (2011), The Utopia Experiment (2013), and The Patriot Attack (2015), the eighth, tenth, and twelfth installments of the Covert-One series, originally created by Robert Ludlum.

Mills lives in Jackson Hole, Wyoming with his wife and they are both avid rock climbers. Mills grew up in Oregon, and his father was an agent with the FBI.

Novels

External links

https://en.wikipedia.org/wiki/Kyle_Mills_(author)

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Tyler Cowen — The Complacent Class: The Self-Defeating Quest for the American Dream — Marginal Revolution University — Videos

Posted on April 2, 2017. Filed under: American History, Blogroll, Books, College Courses Online Videos, Economics, Family, government spending, history, media, Non-Fiction, People, Philosophy, Photos, Politics, Resources, Strategy, Success, Unemployment, Video, Wealth, Welfare, Wisdom, Work, Writing | Tags: , , , , , , , , , , , |

Image result for tyler cowen The Complacent Class: The Self-Defeating Quest for the American DreamImage result for tyler cowenMRUniversity | An Online Education PlatformMarginal Revolution University

http://www.mruniversity.com/

The Complacent Class (Episode 1/5)

The New Era of Segregation (Episode 2/5)

American Stasis (Episode 3/5)

The Missing Men (Episode 4/5)

Up Next:

 The Great Reset (Episode 5/5)

What might happen if our stagnating economy faces a crisis?

Tyler Cowen, “The Complacent Class”

The American Dream and the Complacent Class

Tyler Cowen, “The Complacent Class”

Tyler Cowen: The Great Stagnation

Peter Thiel (full) | Conversations with Tyler

Be suspicious of stories | Tyler Cowen | TEDxMidAtlantic

TEDxEast – Tyler Cowen – The Great Stagnation

This video series accompanies Tyler Cowen’s new book The Complacent Class: The Self-Defeating Quest for the American Dream. The book is available in print and digital formats from Amazon, Barnes & Noble, and other book retailers.

Image result for tyler cowenImage result for tyler cowen

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American Culture and Innovation

The pioneer spirit has defined American culture for hundreds of years. We’ve been willing to cross great distances, take big risks, and adapt to change in ways that have produced a dynamic economy. From Ben Franklin to Steve Jobs, innovation has been firmly rooted in American DNA and has positively changed the world.

What if that’s no longer true?

Over the next few weeks, join economist Tyler Cowen on an exploration of how we’re working harder than ever to avoid change and letting algorithms keep us a little too comfortable.

Want to stay in the loop as we release new episodes? Sign-up for updates in your inbox.

What’s Marginal Revolution University?

We believe economics has the power to change the way you see the world.

Many of us can recall that first teacher that changed the way we saw the world. We’re aiming to recreate that experience everyday for millions worldwide, for free.

Marginal Revolution University is a nonprofit, online education platform for learning economics. Founded in 2012 by George Mason University professors Tyler Cowen and Alex Tabarrok, we have a small team operating both in Arlington, VA and remotely around the globe. Through engaging, high production quality videos on a variety of economics topics, we support teachers, students, and lifelong learners. Our goal is to help learners better understand the economic way of thinking. Several complete courses are available for free at MRUniversity.com that can be used alone or as a supplement to a traditional course.

We offer a full course on Principles of Microeconomics and are currently releasing Principles of Macroeconomics.

All of our materials are free to use in and out of the classroom.

Questions? Comments? Drop us a note at support@mruniversity.com.

Up Next:

5. The Great Reset

What might happen if our stagnating economy faces a crisis?

Looking for more like this? Check out some of our other popular videos:

“Tyler Cowen’s blog, Marginal Revolution, is the first thing I read every morning. And his brilliant new book, The Complacent Class, has been on my nightstand after I devoured it in one sitting. I am at round-the-clock Cowen saturation right now.” – Malcolm Gladwell

Tyler Cowen on…

1. The Complacent Class

The Complacent Class by Tyler Cowen
Econ Duel: Will Machines Take Our Jobs?
Econ Duel: Will Machines Take Our Jobs?

This video series accompanies Tyler Cowen’s new book The Complacent Class: The Self-Defeating Quest for the American Dream. The book is available in print and digital formats from Amazon, Barnes & Noble, and other book retailers.

2. The New Era of Segregation

3. American Stasis

Tyler Cowen

From Wikipedia, the free encyclopedia
Tyler Cowen
Tyler Cowen 1.jpg
Born January 21, 1962 (age 55)
Bergen County, New Jersey, USA
Nationality American
Field Cultural economics
School or
tradition
Neoclassical economics
Influences Chicago School
Thomas Schelling
Carl Menger

Tyler Cowen (/ˈk.ən/; born January 21, 1962) is an American economist, philosopher, and writer, who is a professor at George Mason University, where he holds the Holbert C. Harris Chair of economics. He hosts a popular economics blog, Marginal Revolution, together with his co-author, Alex Tabarrok. Cowen and Tabarrok have also started the website Marginal Revolution University, a venture in online education.

Cowen writes the “Economic Scene” column for the New York Times, and since July 2016 has been a regular opinion columnist at Bloomberg View.[1] He also writes for such publications as The New Republic, the Wall Street Journal, Forbes, Newsweek, and the Wilson Quarterly. He serves as general director of George Mason’s Mercatus Center, a university research center that focuses on the market economy.

In February 2011, Cowen received a nomination as one of the most influential economists in the last decade in a survey by The Economist.[2] He was ranked #72 among the “Top 100 Global Thinkers” in 2011 by Foreign Policy Magazine “for finding markets in everything.”[3]

Education and personal life

Cowen was born in Bergen County,[4] New Jersey. At 15, he became the youngest ever New Jersey state chess champion.[5][6]

He graduated from George Mason University with a bachelor of science degree in economics in 1983 and received his PhD in economics from Harvard University in 1987 with his thesis titled Essays in the theory of welfare economics. At Harvard, he was mentored by game theorist Thomas Schelling, the 2005 recipient of the Nobel Prize in Economics. He is married to Natasha Cowen, a lawyer.

Writings

Culture

The Los Angeles Times has described Cowen as “a man who can talk about Haitian voodoo flags, Iranian cinema, Hong Kong cuisine, Abstract Expressionism, Zairian music and Mexican folk art with seemingly equal facility.”[7] One of Cowen’s primary research interests is the economics of culture. He has written books on fame (What Price Fame?), art (In Praise of Commercial Culture), and cultural trade (Creative Destruction: How Globalization is Changing the World’s Cultures). In Markets and Cultural Voices, he relays how globalization is changing the world of three Mexican amate painters. Cowen argues that free markets change culture for the better, allowing them to evolve into something more people want. Other books include Public Goods and Market Failures, The Theory of Market Failure, Explorations in the New Monetary Economics, Risk and Business Cycles, Economic Welfare, and New Theories of Market Failure.

Recent books

Cowen followed the controversial success of his The Great Stagnation with An Economist Gets Lunch: New Rules for Everyday Foodies, “taking on food with equally provocative ideas.”[8]

The Great Stagnation: How America Ate All The Low-Hanging Fruit of Modern History, Got Sick, and Will (Eventually) Feel Better is a short, 15,000-word, take on the United States’ recent economic trajectory released in January 2011. Create Your Own Economy: The Path to Prosperity in a Disordered World was released in July 2009 (and rereleased in 2010, with the new title The Age of the Infovore: Succeeding in the Information Economy) and received favorable reviews from critics including Matthew Yglesias and Tim Harford.

In 2013, he published Average is Over, on the future of modern economies.

HIs most recent book, The Complacent Class: The Self-Defeating Quest for the American Dream (St. Martins Press, February 2017) discusses how the change that has moved America forward has stopped. According to Malcolm Gladwell, “His brilliant new book…has been on my nightstand after I devoured it in one sitting. I am at round-the-clock Cowen saturation right now.”

New York Times columns

Cowen’s New York Times columns cover a wide range of issues, such as the 2008 financial crisis: “Too Few Regulations? No, Just Ineffective Ones”.

Dining guide

His dining guide for the DC area, “Tyler Cowen’s Ethnic Dining Guide,” was reprinted in the Food section of the Washington Post.

Political philosophy

Cowen has written papers in political philosophy and ethics: for example, he co-wrote a paper with the philosopher Derek Parfit, arguing against the social discount rate.[9] A recent paper has argued that the epistemic problem fails to refute consequentialist forms of argument.[10] Cowen has been described as a “libertarian bargainer,” a moderate libertarian[clarification needed] who can influence practical policy making.[11] In a 2007 article entitled “The Paradox of Libertarianism,” Cowen argued that libertarians “should embrace a world with growing wealth, growing positive liberty, and yes, growing government. We don’t have to favor the growth in government per se, but we do need to recognize that sometimes it is a package deal.”

Cowen endorsed bailouts in a March 2, 2009 column in the New York Times.[12]

In 2012, David Brooks called Cowen one of the most influential bloggers on the right, writing that he is among those who “start from broadly libertarian premises but do not apply them in a doctrinaire way.”[13]

In an August 2014 blog post, Cowen wrote, “Just to summarize, I generally favor much more immigration but not open borders, I am a liberal on most but not all social issues, and I am market-oriented on economic issues. On most current foreign policy issues I am genuinely agnostic as to what exactly we should do but skeptical that we are doing the right thing at the moment. I don’t like voting for either party or for third parties.”[14]

Attack

On March 26, 2014, Cowen was attacked while teaching “Law and Literature” in his classroom by Jonathan Pendleton, who tried to perform a “citizen’s arrest” of the professor and then pepper sprayed him.[15][16][17] A bystander intervened and Pendelton was detained and arrested shortly after by police. Cowen and his students reportedly suffered no lasting injuries. Pendelton reportedly believed that Cowen had “controlled his mind at a distance” and sexually harassed him.[17]

Publications

Books

Select journal articles

Select articles

References

  1. Jump up^ https://www.bloomberg.com/view/contributors/AS6n2t3d_iA/tyler-cowen
  2. Jump up^ “Economics’ most influential people”. Economist.com. February 1, 2011. Retrieved 2012-06-30.
  3. Jump up^ “The FP Top 100 Global Thinkers (#72 Tyler Cowan:For finding markets in everything)”. Foreign Policy. December 2011. Retrieved March 21, 2012.
  4. Jump up^ “Correction: Tyler Cowen”. Financial Times. London: Pearson. 29 December 2012. Retrieved 1 February 2014.
  5. Jump up^ “Interview with the Former “Youngest New Jersey Chess Champion,” Tyler Cowen”. Kenilworthchessclub.org. 2006-09-08. Retrieved 2012-06-30.
  6. Jump up^ New Jersey State Champions 1946 – Present New Jersey State Chess Federation, Official Site
  7. Jump up^ The joy of thinking globally, February 7, 2003, Daniel Akst, Los Angeles Times
  8. Jump up^ Cowen, Tyler (2012-04-12). “Penny Pleasance in The New York Journal of Books”. Nyjournalofbooks.com. Retrieved 2012-06-30.
  9. Jump up^ ‘Against the social discount rate’, Derek Parfit and Tyler Cowen, in Peter Laslett & James S. Fishkin (eds.) Justice between age groups and generations, Yale University Press: New Haven, 1992, pp. 144–161.
  10. Jump up^ The Epistemic Problem Does Not Refute Consequentialism, Tyler Cowen, Utilitas (2006), 18: 383–399
  11. Jump up^ Klein, Daniel B.Mere Libertarianism: Blending Hayek and Rothbard“. Reason Papers. Vol. 27: Fall 2004.
  12. Jump up^ Cowen, Tyler (March 1, 2009). “Message to Regulators: Bank Fix Needed Quickly”. New York Times.
  13. Jump up^ Brooks, David (2012-11-19). “The Conservative Future”. New York Times. Retrieved 28 November 2012.
  14. Jump up^ Cowen, Tyler (4 August 2014). “Matt Yglesias on Tyler Cowen”. Marginal Revolution. Retrieved 24 March 2017.
  15. Jump up^ Greenwood, Arin (2014-03-27). “Tyler Cowen Pepper Sprayed While Teaching Law School Class On Vigilantism”. Huffington Post.
  16. Jump up^ McNeal, Greg (2014-03-27). “Law Professor Pepper Sprayed During Class By Man Demanding A ‘Citizen’s Arrest'”. Forbes.
  17. ^ Jump up to:a b Weiner, Rachel (April 29, 2014). “Tyler Cowen’s attacker thought the professor was controlling his mind, Cowen testifies”. The Washington Post. Retrieved April 29, 2014.

External links

https://en.wikipedia.org/wiki/Tyler_Cowen

 

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Greg Iles –Natchez Burning, The Bone Tree and Mississippi Blood — Videos

Posted on March 26, 2017. Filed under: Blogroll, Books, Communications, Culture, Education, Entertainment, Fiction, Language, Law, liberty, Life, Links, Literature, media, Music, People, Philosophy, Photos, Police, Rants, Raves, Video, Welfare, Wisdom, Work, Writing | Tags: , , , , , , , , , , , |

Image result for greg ilels the bone tree

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A Conversation with Greg Iles about Mississippi Blood

Author Greg Iles: “Mississippi Blood”

Broken Bones | Greg Iles | A

Word on Words | NPT

Greg Iles Pulls from History for His Natchez Thriller Trilogy

Greg Iles: A Writer’s Conversation

Greg Iles Introduces Natchez Burning

The Death Factory by Greg Iles | Book Review

Natchez Burning Fans!

Book Looks – “Natchez Burning”

Greg Iles Interview Part 1 of 6

Greg Iles Interview Part 2 of 6

Greg Iles Interview Part 3 of 6

Greg Iles Interview Part 4 of 6

Greg Iles Interview Part 5 of 6

Rock Bottom Remainders – Midnight Hour

The Original Rock Bottom Remainders

Rock Bottom Remainders on The Late Late Show

Greg Iles sings “Steamroller”

dirty water, part 1 – rock bottom remainders

Rock Bottom Remainders at ALA 2012

wild thing – rock bottom remainders

Steve Martin, a banjo and RBR

Amy Tan and Airport Security

Bruce Springsteen

Roger and Ridley

Greg Iles

From Wikipedia, the free encyclopedia
Greg Iles
Born 1960 (age 56–57)
Stuttgart, Germany
Nationality American
Occupation Writer

Greg Iles (born 1960) is a novelist who lives in Mississippi. He has published 15 novels and one novella, spanning a variety of genres.

Biography

Early life

Iles was born in 1960 in Stuttgart, Germany, where his physician father ran the U.S. Embassy Medical Clinic. He was raised in Natchez, Mississippi, the setting of many of his novels.[1] After attending Trinity Episcopal Day School, he graduated from the University of Mississippi in 1983.

Career

Iles spent several years as a guitarist, singer, and songwriter in the band Frankly Scarlet.[2] He quit the band after he was married and began working on his first novel, Spandau Phoenix, a thriller about Nazi war criminal Rudolf Hess. Spandau Phoenix was published in 1993.

In 2002, Iles wrote the script 24 Hours from his novel of the same name. Rewritten by director Don Roos, it was renamed Trapped. Iles then rewrote the script during the shoot, at the request of the producers and actors.[3]

In 2011, Iles was seriously injured in a traffic accident on U.S. Route 61 near Natchez.[4] He sustained life-threatening injuries, including a ruptured aorta.[5] He was put into an induced coma for eight days, and lost his right leg below the knee. During his three-year recovery, he wrote three volumes of a trilogy set in Natchez, Mississippi, and featuring former prosecutor Penn Cage.[6][7]

Iles is a member of the literary musical group The Rock Bottom Remainders, which includes or has included authors Dave Barry, Ridley Pearson, Stephen King, Scott Turow, Amy Tan, Mitch Albom, Roy Blount, Jr., Matt Groening, and James McBride.[8] In July 2013, he co-authored Hard Listening (2013) with the group.[9] The ebook combines essays, fiction, musings, email exchanges and conversations, photographs, audio and video clips, and interactive quizzes to give readers a view into the private lives of the authors/musicians.

Works

Fiction

Nonfiction

  • Hard Listening (2013), with Rock Bottom Remainders

References

External links

Silver Dollar Group

From Wikipedia, the free encyclopedia

The Silver Dollar Group was an offshoot of the Ku Klux Klan white nationalist militant group, composed of leaderless resistance cells that took up violent actions to support Klan goals. The group was largely found in Mississippi and Louisiana, and was named for their practice of identifying themselves by carrying a silver dollar. The group is believed to have had only some twenty members.[1] The group formed in 1964 at the Shamrock Motor Hotel in Vidalia, Louisiana, amidst dissatisfaction at the lack of forceful action by Klan groups in the region.

The group killed an African American man, Frank Morris, by arson in Ferriday, Louisiana for alleged flirting with white women, and is suspected in two car bombings of NAACP leaders in Natchez, Mississippi, George Metcalfe and Wharlest Jackson.[2] Morris had a shoe repair shop in Ferriday, and died after his shoe repair shop was burned.

2007 prosecution

In 2007, Group member James Ford Seale was charged and convicted for the May 1964 kidnapping of Henry Hezekiah Dee and Charles Eddie Moore, two African-American young men in Meadville, Mississippi.[3]

References

  1. Jump up^ Quarles, C.L. (1999). The Ku Klux Klan and Related American Racialist and Antisemitic Organizations: A History and Analysis. McFarland. p. 124. ISBN 9780786406470. Retrieved January 6, 2016.
  2. Jump up^ Newton, M. (2005). The FBI and the KKK: A Critical History. p. 151. ISBN 9781476605104. Retrieved January 6, 2016.
  3. Jump up^ “Americas | US man in 1964 race attack charge”. BBC News. January 25, 2007. Retrieved February 13, 2011.

 

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Sharyl Attkisson — Stonewalled — Videos

Posted on March 18, 2017. Filed under: American History, Blogroll, Books, Central Intelligence Agency (CIA), College, Computers, Computers, Documentary, Education, External Hard Drives, Faith, Family, Federal Bureau of Investigation (FBI), Federal Bureau of Investigation (FBI), Federal Government, government, government spending, history, Law, liberty, Links, Literacy, Mobile Phones, National Security Agency (NSA), National Security Agency (NSA_, Non-Fiction, Philosophy, Political Correctness, Politics, Presidential Candidates, Psychology, Rants, Raves, Raymond Thomas Pronk, Regulations, Security, Spying, Strategy, Success, Talk Radio, Technology, Terrorism, Video, War, Wealth, Weapons, Wisdom, Work, Writing | Tags: , , , , , , , , , , |

Image result for Sharyl Attkisson -- Stonewalled

Sharyl Attkisson: Presidents CAN authorize ILLEGAL surveillance and nobody would ever know!

Sharyl Attkisson Talks “Stonewalled”

Sharyl Attkisson: CBS Had Hidden Clip of Obama Contradicitng Himself on the 2012 Benghazi Attack

Malzberg | Sharyl Attkisson to discuss her new book “Stonewalled” | Part 1

[youtube-https://www.youtube.com/watch?v=OjAoVEhlrPc]

Malzberg | Sharyl Attkisson to discuss her new book “Stonewalled” | Part 2

Sharyl Attkisson: why she left CBS

 

Sharyl Attkisson

From Wikipedia, the free encyclopedia
Sharyl Attkisson
AttkissonB52.jpg

Attkisson on USAF B-52 in 1999, one of the first journalists to fly on a combat mission over Kosovo
Born January 26, 1961 (age 56)
Sarasota, Florida, United States
Education University of Florida
Occupation Writer, journalist, television correspondent
Website sharylattkisson.com

Sharyl Attkisson (born January 26, 1961)[1] is an American author and host of the weekly Sunday public affairs program Full Measure with Sharyl Attkisson, which airs on television stations operated by the Sinclair Broadcast Group.[2] She was formerly an investigative correspondent in the Washington bureau for CBS News. She had also substituted as anchor for the CBS Evening News. She resigned from CBS News on March 10, 2014 after 21 years with the network. Her book Stonewalled reached number 3 on New York Times e-book non-fiction best seller list in November 2014[3] and number 5 on The New York Times combined print and e-book non-fiction best-seller list the same week.[4]

Contents

 [show] 

Early life

Attkisson was born in 1961 in Sarasota, Florida.[5] Her step-father is an orthopedic surgeon, and her brother is an emergency room physician. Attkisson graduated from the University of Florida with a degree in broadcast journalism in 1982.[6]

Career

Attkisson began her broadcast journalism career in 1982, aged 22, as a reporter at WUFT-TV, the PBS station in Gainesville, Florida. She later worked as an anchor and reporter at WTVX-TV Fort Pierce/West Palm Beach, Florida from 1982–1985, WBNS-TV, the CBS affiliate in Columbus, Ohio from 1985–86, and WTVT Tampa, Florida (1986–1990).[7]

1990s

From 1990–1993, Attkisson was an anchor for CNN, and also served as a key anchor for CBS space exploration coverage in 1993.[8] Attkisson left CNN in 1993,[9] moving to CBS, where she anchored the television news broadcast CBS News Up to the Minute and became an investigative correspondent based in Washington, D.C.[7]

She served on the University of Florida‘s Journalism College Advisory Board (1993–1997) and was its chair in 1996.[7] The University gave her an Outstanding Achievement Award in 1997. From 1997 to 2003, Attkisson simultaneously hosted CBS News Up to the Minute and the PBS health-news magazine HealthWeek.[10]

2000s

Attkisson received an Investigative Reporters and Editors (I.R.E.) Finalist award for Dangerous Drugs in 2000.[11] In 2001, Attkisson received an Investigative Emmy Award nomination for Firestone Tire Fiasco from the National Academy of Television Arts and Sciences.[12]

In 2002, she co-authored a college textbook, Writing Right for Broadcast and Internet News; later that same year she won an Emmy Award for her Investigative Journalism about the American Red Cross.[7] The award was presented in New York City on September 10, 2002.[13] Attkisson was part of the CBS News team that received RTNDA-Edward R. Murrow Awards in 2005 for Overall Excellence.[11]

In 2006, Attkisson served as Capitol Hill correspondent for CBS,[14] as one of a small number of female anchors covering the 2006 midterms.[15] Attkisson was part of the CBS News team that received RTNDA-Edward R. Murrow Awards in 2008 for Overall Excellence.[11]

In 2008, Attkisson reported that a claim by Hillary Clinton to have dodged sniper fire in Bosnia was unfounded: Clinton’s trip to Bosnia was risky, Attkisson said, but no real bullets were dodged. Attkisson was on the trip with Clinton.[16] The day after Attkisson’s report on the CBS Evening News, Clinton admitted there was no sniper fire and said she “misspoke.” [17][18]In 2009, Attkisson won an Investigative Emmy Award for Business and Financial Reporting for her exclusive reports on the Troubled Asset Relief Program (TARP) and the bank bailout.[11] The award was presented on December 7 at Fordham University‘s Lincoln Center Campus in New York City.[19]

2010s[edit]

Attkisson returned to the University of Florida as a keynote speaker at the College of Journalism and Communications in 2010.[6] That same year, she received an Emmy Award nomination for her investigations into members of Congress, and she also received a 2010 Emmy Award nomination for her investigation into waste of tax dollars.[20] In July 2011, Attkisson was nominated for an Emmy Award for her Follow the Money investigations into Congressional travel to the Copenhagen climate summit, and problems with aid to Haiti earthquake victims.[11][21]

In 2011, Paul Offit criticized Attkisson’s reporting on vaccines in his book Deadly Choices as “damning by association” and lacking sufficient evidence.[22] Dr. Offit has been criticized for providing false information about Attkisson and his vaccine industry ties. [23] Attkisson has been identified in the medical literature as using problematic rhetorical tactics that “imply that because there is no conclusive answer to certain problems, vaccines remain a plausible culprit.”[24] Attkisson’s reporting was cited favorably in a letter to the New England Journal of Medicine by neurosurgeon Jon Poling who wrote that Offit had “misrepresented” the case of Hannah Poling v. HHS, and that Offit’s remarks on the case were “not evidence based.”[25]

In 2012, CBS News accepted an Investigative Reporting Award given to Attkisson’s reporting on ATF’s Fast and Furious gunwalker controversy. The award was from Accuracy in Media, a non-profit news media watchdog group, and was presented at a Conservative Political Action Conference.[26]

In June 2012, Attkisson’s investigative reporting for the Gunwalker story also won the CBS Evening News the Radio and Television News Directors Association’s National Edward R. Murrow Award for Excellence in Video Investigative Reporting. The award was presented October 8, 2012 in New York City.[27] In July 2012, Attkisson’s Gunwalker: Fast and Furious reporting received an Emmy Award[28]

On March 10, 2014, Attkisson resigned from CBS News.[29] She stated that the parting was “amicable”.[30] Politico reported that according to sources within CBS there had been tensions leading to “months of hard-fought negotiations” – that Attkisson had been frustrated over what she perceived to be the network’s liberal bias and lack of dedication to investigative reporting, as well as issues she had with the network’s corporate partners, while some[who?] within the network saw her reporting as agenda-driven and doubted her impartiality.[30]

Later that year came the release of her New York Times Best Seller, Stonewalled: One Reporter’s Fight for Truth Against the Forces of Obstruction, Intimidation, and Harassment in Obama’s Washington (Harpers),[4] in which she accused CBS of protecting the Obama administration by not giving enough coverage to such stories as the 2012 Benghazi attack and slow initial enrollments under Obamacare.[31]

In February 2015, Attkisson gave a TEDx talk at the University of Nevada. In the talk, she said that astroturfing was swaying public opinion, legislation and media outlets.[32]

Report of Attkisson’s computer being hacked[edit]

In May 2013, while still employed at CBS, Attkisson alleged that her personal and work computers had been “compromised” for more than two years.[33] CBS News stated that it had investigated her work computer and found evidence of multiple unauthorized accesses by a third party in late 2012.[34] The U.S. Department of Justice denied any involvement.[35] In her 2014 book, she alleged that her personal computer was hacked with keystroke logging spyware, enabling an intruder to read all her e-mail messages and gain access to the passwords for her financial accounts.[36]

In late January 2015, Attkisson appeared before the Senate Judiciary Committee[37] during a confirmation hearing for Loretta Lynch, President Obama’s nominee to replace outgoing Attorney General Eric Holder. Attkisson’s testimony concentrated on the Justice Department under Holder and was not related to Lynch’s qualifications.[by whom?] As part of her appearance in front of that committee, a report by the Office of Inspector General (OIG) was released[38] stating that “their investigation was not able to substantiate… allegations that Attkisson’s computers were subject to remote intrusions by the FBI, other government personnel, or otherwise” and the deletion seen in Attkinsson’s video “appeared to be caused by the backspace key being stuck, rather than a remote intrusion”.[39][40][41] “CBS News told the OIG that they did not conduct any analysis on her personal computer.”[42]

In February 2015, The Washington Examiner clarified that the OIG did not examine Attkisson’s compromised CBS News computer,[42] the OIG only inspected Attkisson’s personal devices.[43]

In March 2015, Attkisson and her family filed a suit against Holder, Patrick R. Donahoe and unnamed agents of the US Department of Justice, the US Postal Service and the United States in the Superior Court of the District of Columbia claiming to have been subject to illegal surveillance activities.[44][45]

Personal life[edit]

Attkisson has reached third-degree black belt in taekwondo.[5] She is married and has a daughter.[46]

References[edit]

  1. Jump up^ Gill, Kay (2007). Who, a Directory of Prominent People. Omnigraphics. ISBN 9780780808096. Retrieved December 4, 2012.
  2. Jump up^ Erik Wemple (April 22, 2015). “Sinclair Broadcast Group to launch Sunday show hosted by Sharyl Attkisson”. The Washington Post. Nash Holdings LLC. Retrieved November 22, 2015.
  3. Jump up^ “NYT Best Seller List”. The New York Times. Retrieved August 8, 2016.
  4. ^ Jump up to:a b “Best Sellers: Combined Print & E-Book Nonfiction”. The New York Times]]. November 23, 2014. Retrieved November 4, 2015.
  5. ^ Jump up to:a b “Sharyl Attkisson, Investigative Correspondent”. CBS. Archived from the original on November 21, 2013. Retrieved June 29, 2011.
  6. ^ Jump up to:a b “21st Century Newsroom”. University of Florida. Retrieved June 29, 2011.
  7. ^ Jump up to:a b c d “Sharyl Attkisson full biography”. CBS Interactive. Archived from the original on August 16, 2013. Retrieved November 28, 2012.
  8. Jump up^ Hogan, Alfred. “Televising the Space Age: A descriptive chronology of CBS News special coverage of space exploration from 1957 to 2003” (PDF). University of Maryland. p. 260. Retrieved June 29, 2011.
  9. Jump up^ “TV Notes”. Pittsburgh Post-Gazette. May 28, 1993. p. 42. Retrieved June 29, 2011.
  10. Jump up^ “Sharyl Attkisson–About This Person”. The New York Times. The New York Times Company. Retrieved June 29, 2011.
  11. ^ Jump up to:a b c d e “Sharyl Attkisson profile”. CBS News. Archived from the original on November 19, 2013. Retrieved August 30, 2012.
  12. Jump up^ “The 22nd Annual News and Documentary Emmy Award Nominees Announced by the National Academy of Television Arts and Sciences” (PDF). National Academy of Television Arts and Sciences. July 19, 2001. Archived from the original (PDF) on December 29, 2014. Retrieved December 29, 2014. Correspondent Sharyl Attkisson
  13. Jump up^ “23rd Annua; News & Documentary Emmy Awards – With Prominent 9/11 Coverage”. Emmyonline.org. Archived from the original on November 23, 2010. Retrieved August 30, 2012.
  14. Jump up^ “Sharyl Attkisson Is Named Cbs News Capitol Hill Correspondent”. CBS Corporation. Retrieved June 25, 2014.
  15. Jump up^ Stanley, Alessandra (November 8, 2006). “Election Coverage Still a Men’s Club”. The New York Times. The New York Times Company. Retrieved June 29, 2011.
  16. Jump up^ “Video shows tarmac welcome, no snipers”. Tampa Bay Times. March 25, 2008. Retrieved November 1, 2014.
  17. Jump up^ “Clinton says she “misspoke’ about dodging sniper fire”. NYT.com. New York Times. Retrieved November 7, 2016.
  18. Jump up^ “Clinton say she “misspoke” about sniper fire”. CNN.com. CNN. Retrieved November 7, 2016.
  19. Jump up^ “7th Annual Business & Financial Emmy Awards – Nominations”. Emmyonline.org. Retrieved August 30, 2012.
  20. Jump up^ “Full List of Nominations for the 2010 News and Documentary Emmy Awards: Television Industry news, TV ratings, analysis, celebrity event photos”. TVWeek. Retrieved June 25, 2014.
  21. Jump up^ Attkisson 2011 Emmy nomination, emmyonline.tv; accessed October 28, 2014.
  22. Jump up^ Offit, Paul (2011). Deadly Choices: How the Anti-Vaccine Movement Threatens Us All. ISBN 0465023568.
  23. Jump up^ “Corrections for April 18”. Orange County Register. Retrieved November 28, 2016.
  24. Jump up^ Kata, Anna (28 May 2012). “Anti-vaccine activists, Web 2.0, and the postmodern paradigm – An overview of tactics and tropes used online by the anti-vaccination movement”. Vaccine. 30 (25): 3778–3779. doi:10.1016/j.vaccine.2011.11.112.
  25. Jump up^ Poling, Jon (7 August 2008). “Vaccines and Autism Revisited”. NEJM. 359 (10): 655–656. doi:10.1056/NEJMc086269.
  26. Jump up^ “Loesch, Attkisson to receive AIM awards”. Politico. February 7, 2012. Retrieved February 10, 2012.
  27. Jump up^ “2012 National Edward R. Murrow Award Winners”. Radio Television Digital News Association. Retrieved June 13, 2012.
  28. Jump up^ “33rd Annual News & Documentary Emmy Awards nominations” (PDF). Emmyonline.tv. Retrieved August 30, 2012.
  29. Jump up^ Macneal, Caitlin (March 10, 2014). “CBS Investigative Reporter Sharyl Attkisson Resigns From Network”. Talking Points Memo. Retrieved March 11, 2014.
  30. ^ Jump up to:a b Byers, Dylan (March 10, 2014). “Sharyl Attkisson resigns from CBS News”. Politico. Retrieved March 11, 2014.
  31. Jump up^ Smith, Kyle (October 25, 2014), “Ex-CBS reporter’s book reveals how liberal media protects Obama”, New York Post, retrieved November 3, 2014
  32. Jump up^ “Astroturf and manipulation of media messages”. YouTube.com. TEDxUniversityofNevada. February 6, 2015. Retrieved December 4, 2015.
  33. Jump up^ Mirkinson, Jack (May 21, 2013). “CBS’ Sharyl Attkisson: My Computers Were Compromised, ‘Could Be Some Relationship’ To DOJ Scandals”. The Huffington Post. Retrieved November 1, 2014.
  34. Jump up^ “CBS News Confirms Sharyl Attkisson’s Computer Breached”. The Huffington Post. June 14, 2013. Retrieved November 1, 2014.
  35. Jump up^ “Sharyl Attkisson’s Computer Not Compromised, DOJ Says”. The Huffington Post. May 22, 2013. Retrieved November 1, 2014.
  36. Jump up^ Smith, Kyle; Golding, Bruce (October 27, 2014), “Ex-CBS reporter: Government agency bugged my computer”, New York Post, retrieved October 28, 2014
  37. Jump up^ “Why is Sharyl Attkisson testifying at Loretta Lynch’s confirmation hearing?”. Washington Post.
  38. Jump up^ “DOJ OIG Report – Sharyl Attkisson”. scribd.com.
  39. Jump up^ Hattem, Julian. “Watchdog: Attkisson wasn’t hacked, had ‘delete’ key stuck”. TheHill. Retrieved 2016-04-05.
  40. Jump up^ Groch-Begley, Hannah; Strupp, Joe (October 31, 2014). “Computer Security Experts: Attkisson Video Of Purported “Hacking” Likely Just A Stuck Backspace Key”. Media Matters for America. Retrieved January 5, 2015.
  41. Jump up^ Fisher, Max (October 31, 2014). “The video of Sharyl Attkisson getting “hacked” actually just shows a stuck delete key”. Vox. Retrieved November 2, 2014.
  42. ^ Jump up to:a b “Media Matters report on Attkisson claims”. Media Matters for America. January 29, 2015.
  43. Jump up^ T. Becket Adams (February 3, 2015). “Sharyl Attkisson: What was left out of reports on hacking”. The Washington Examiner. Retrieved 22 November 2015. The IG did not rule out computer intrusions. It did not substantiate but neither did it rule out.
  44. Jump up^ Attkisson sues government over computer intrusions, Washington Post; Retrieved March 6, 2015.
  45. Jump up^ Editorial Opinion re Attkisson, Washington Post; Retrieved March 6, 2015.
  46. Jump up^ “Attkisson biography”. Televisionnewscenter.org. Retrieved March 11, 2014.

External links[edit]

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National Security Agency Is Spying On All American Who Use The Internet and Telephone System and They Collect and Store All Your Communications — Includes Trump and Associates — No Warrant Required If President Obama Designates You A Target — Congress Is Enabling The Turnkey Two Party Tyranny — Warrentless Searches — Congress Does Nothing To Stop It! — Videos

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Image result for National security agencyImage result for NSA utah data center

Image result for NSA utah data centerImage result for NSA utah data centerImage result for National security agencyImage result for National security agency

Obama launched TWO criminal investigations on Trump׃ no evidence found

The O’Reilly Factor March 18, 2017 Fox News Pres Trump March 18, 2017

Edward Snowden Vault 7 ” Wikileaks” Obama Targeting Trump Tower Live from Russia Stream 14 03 2017

Former NSA Employee, Bill Binney, Breaks Silence Confirms Trump Wiretapping claims

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NSA Whistleblower William Binney on The Laura Ingraham Show (3/10/2017)

Sean Hannity talks to Mark Levin , Jay Sekulow & Bill Binney about POTUS wiretapping claims

*BOMBSHELL* SEAN HANNITY, WILLIAM BINNEY and TONY SHAFFER (3/8/17) – TALK VAULT 7

Whistleblower: NSA Still Collecting Data On Every U.S. Citizen

william binney ex nsa intelligence agent discusses trump leaks with lou dobbs

Sharyl Attkisson: Presidents CAN authorize ILLEGAL surveillance and nobody would ever know!

Malzberg | Sharyl Attkisson to discuss her new book “Stonewalled” | Part 1

[youtube-https://www.youtube.com/watch?v=OjAoVEhlrPc]

Malzberg | Sharyl Attkisson to discuss her new book “Stonewalled” | Part 2

Wyden: No to warrantless searches by the FBI through National Security Letters

NSA Whistleblower: Everyone in US under virtual surveillance, all info stored, no matter the post

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“You’re Being Watched”: Edward Snowden Emerges as Source Behind Explosive Revelations of NSA Spying

Does the NSA Record Phone Calls? Glenn Greenwald on Warrentless Domestic Surveillance (2007)

Published on Jul 8, 2013

The NSA warrantless surveillance controversy (AKA “Warrantless Wiretapping”) concerns surveillance of persons within the United States during the collection of foreign intelligence by the U.S. National Security Agency (NSA) as part of the war on terror. Under this program, referred to by the Bush administration as the “terrorist surveillance program”, part of the broader President’s Surveillance Program, the NSA was authorized by executive order to monitor, without search warrants, the phone calls, Internet activity (Web, e-mail, etc.), text messaging, and other communication involving any party believed by the NSA to be outside the U.S., even if the other end of the communication lies within the U.S. Critics, however, claimed that it was in an effort to attempt to silence critics of the Bush Administration and their handling of several hot button issues during its tenure. Under public pressure, the Bush administration ceased the warrantless wiretapping program in January 2007 and returned review of surveillance to the FISA court. Subsequently, in 2008 Congress passed the FISA Amendments Act of 2008, which relaxed some of the original FISA court requirements.

During the Obama Administration, the NSA has officially continued operating under the new FISA guidelines. However, in April 2009 officials at the United States Department of Justice acknowledged that the NSA had engaged in “overcollection” of domestic communications in excess of the FISA court’s authority, but claimed that the acts were unintentional and had since been rectified.

All wiretapping of American citizens by the National Security Agency requires a warrant from a three-judge court set up under the Foreign Intelligence Surveillance Act. After the 9/11 attacks, Congress passed the Patriot Act, which granted the President broad powers to fight a war against terrorism. The George W. Bush administration used these powers to bypass the FISA court and directed the NSA to spy directly on al Qaeda in a new NSA electronic surveillance program. Reports at the time indicate that an “apparently accidental” “glitch” resulted in the interception of communications that were purely domestic in nature.[5] This action was challenged by a number of groups, including Congress, as unconstitutional.

The exact scope of the program is not known, but the NSA is or was provided total, unsupervised access to all fiber-optic communications going between some of the nation’s largest telecommunication companies’ major interconnected locations, including phone conversations, email, web browsing, and corporate private network traffic.[6] Critics said that such “domestic” intercepts required FISC authorization under the Foreign Intelligence Surveillance Act.[7] The Bush administration maintained that the authorized intercepts are not domestic but rather foreign intelligence integral to the conduct of war and that the warrant requirements of FISA were implicitly superseded by the subsequent passage of the Authorization for Use of Military Force Against Terrorists (AUMF).[8] FISA makes it illegal to intentionally engage in electronic surveillance under appearance of an official act or to disclose or use information obtained by electronic surveillance under appearance of an official act knowing that it was not authorized by statute; this is punishable with a fine of up to $10,000 or up to five years in prison, or both.[9] In addition, the Wiretap Act prohibits any person from illegally intercepting, disclosing, using or divulging phone calls or electronic communications; this is punishable with a fine or up to five years in prison, or both.[10]

After an article about the program, (which had been code-named Stellar Wind), was published in The New York Times on December 16, 2005, Attorney General Alberto Gonzales confirmed its existence.[11][12][13] The Times had posted the exclusive story on their website the night before, after learning that the Bush administration was considering seeking a Pentagon-Papers-style court injunction to block its publication.[14] Critics of The Times have alleged that executive editor Bill Keller had withheld the story from publication since before the 2004 Presidential election, and that the story that was ultimately published by The Times was essentially the same as reporters James Risen and Eric Lichtblau had submitted in 2004.[15] In a December 2008 interview with Newsweek, former Justice Department employee Thomas Tamm revealed himself to be the initial whistle-blower to The Times. The FBI began investigating leaks about the program in 2005, with 25 agents and 5 prosecutors on the case.

FBI’s Patriot Act Abuse of National Security Letters and illegal NSA spying

If you think you can handle the truth, well here it is folks

National Security Agency

From Wikipedia, the free encyclopedia
“NSA” redirects here. For other uses, see NSA (disambiguation) and National Security Agency (disambiguation).
Not to be confused with NASA or National Security Council.
National Security Agency
Seal of the U.S. National Security Agency.svg

Seal of the National Security Agency
Flag of the U.S. National Security Agency.svg

Flag of the National Security Agency
National Security Agency headquarters, Fort Meade, Maryland.jpg
NSA Headquarters, Fort Meade, Maryland
Agency overview
Formed November 4, 1952; 64 years ago[1]
Preceding agency
  • Armed Forces Security Agency
Headquarters Fort Meade, Maryland, U.S.
39°6′32″N 76°46′17″WCoordinates: 39°6′32″N 76°46′17″W
Motto “Defending Our Nation. Securing The Future.”
Employees Classified (30,000–40,000 estimate)[2][3][4][5]
Annual budget Classified (estimated $10.8 billion, 2013)[6][7]
Agency executives
Parent agency United States Department of Defense
Website www.nsa.gov

The National Security Agency (NSA) is an intelligence organization of the United States federal government responsible for global monitoring, collection, and processing of information and data for foreign intelligence and counterintelligence purposes, a discipline known as signals intelligence (SIGINT). NSA is concurrently charged with protection of U.S. government communications and information systems against penetration and network warfare.[8][9] Although many of NSA’s programs rely on “passive” electronic collection, the agency is authorized to accomplish its mission through active clandestine means,[10] among which are physically bugging electronic systems[11] and allegedly engaging in sabotage through subversive software.[12][13] Moreover, NSA maintains physical presence in a large number of countries across the globe, where its Special Collection Service (SCS) inserts eavesdropping devices in difficult-to-reach places. SCS collection tactics allegedly encompass “close surveillance, burglary, wiretapping, breaking and entering”.[14][15]

Unlike the Defense Intelligence Agency (DIA) and the Central Intelligence Agency (CIA), both of which specialize primarily in foreign human espionage, NSA does not unilaterally conduct human-source intelligence gathering, despite often being portrayed so in popular culture. Instead, NSA is entrusted with assistance to and coordination of SIGINT elements at other government organizations, which are prevented by law from engaging in such activities without the approval of the NSA via the Defense Secretary.[16] As part of these streamlining responsibilities, the agency has a co-located organization called the Central Security Service (CSS), which was created to facilitate cooperation between NSA and other U.S. military cryptanalysis components. Additionally, the NSA Director simultaneously serves as the Commander of the United States Cyber Command and as Chief of the Central Security Service.

Originating as a unit to decipher coded communications in World War II, it was officially formed as the NSA by President Harry S. Truman in 1952. Since then, it has become one of the largest U.S. intelligence organizations in terms of personnel and budget,[6][17] operating as part of the Department of Defense and simultaneously reporting to the Director of National Intelligence.

NSA surveillance has been a matter of political controversy on several occasions, such as its spying on anti-Vietnam-war leaders or economic espionage. In 2013, the extent of some of the NSA’s secret surveillance programs was revealed to the public by Edward Snowden. According to the leaked documents, the NSA intercepts the communications of over a billion people worldwide, many of whom are United States citizens, and tracks the movement of hundreds of millions of people using cellphones. Internationally, research has pointed to the NSA’s ability to surveil the domestic Internet traffic of foreign countries through “boomerang routing”.[18]

Contents

 [show] 

History

Army predecessor

The origins of the National Security Agency can be traced back to April 28, 1917, three weeks after the U.S. Congress declared war on Germany in World War I. A code and cipher decryption unit was established as the Cable and Telegraph Section which was also known as the Cipher Bureau. It was headquartered in Washington, D.C. and was part of the war effort under the executive branch without direct Congressional authorization. During the course of the war it was relocated in the army’s organizational chart several times. On July 5, 1917, Herbert O. Yardley was assigned to head the unit. At that point, the unit consisted of Yardley and two civilian clerks. It absorbed the navy’s cryptoanalysis functions in July 1918. World War I ended on November 11, 1918, and MI-8 moved to New York City on May 20, 1919, where it continued intelligence activities as the Code Compilation Company under the direction of Yardley.[19][20]

Black Chamber

Western Union allowed MI-8 to monitor telegraphic communications passing through the company’s wires until 1929.[21]

MI-8 also operated the so-called “Black Chamber“.[22] The Black Chamber was located on East 37th Street in Manhattan. Its purpose was to crack the communications codes of foreign governments. Jointly supported by the State Department and the War Department, the chamber persuaded Western Union, the largest U.S. telegram company, to allow government officials to monitor private communications passing through the company’s wires.[23]

Other “Black Chambers” were also found in Europe. They were established by the French and British governments to read the letters of targeted individuals, employing a variety of techniques to surreptitiously open, copy, and reseal correspondence before forwarding it to unsuspecting recipients.[24]

Despite the American Black Chamber’s initial successes, it was shut down in 1929 by U.S. Secretary of State Henry L. Stimson, who defended his decision by stating: “Gentlemen do not read each other’s mail”.[21]

World War II and its aftermath

During World War II, the Signal Security Agency (SSA) was created to intercept and decipher the communications of the Axis powers.[25] When the war ended, the SSA was reorganized as the Army Security Agency (ASA), and it was placed under the leadership of the Director of Military Intelligence.[25]

On May 20, 1949, all cryptologic activities were centralized under a national organization called the Armed Forces Security Agency (AFSA).[25]This organization was originally established within the U.S. Department of Defense under the command of the Joint Chiefs of Staff.[26] The AFSA was tasked to direct Department of Defense communications and electronic intelligence activities, except those of U.S. military intelligence units.[26] However, the AFSA was unable to centralize communications intelligence and failed to coordinate with civilian agencies that shared its interests such as the Department of State, Central Intelligence Agency (CIA) and the Federal Bureau of Investigation (FBI).[26] In December 1951, President Harry S. Truman ordered a panel to investigate how AFSA had failed to achieve its goals. The results of the investigation led to improvements and its redesignation as the National Security Agency.[27]

The agency was formally established by Truman in a memorandum of October 24, 1952, that revised National Security Council Intelligence Directive (NSCID) 9.[28] Since President Truman’s memo was a classified document,[28] the existence of the NSA was not known to the public at that time. Due to its ultra-secrecy the U.S. intelligence community referred to the NSA as “No Such Agency”.[29]

Vietnam War

In the 1960s, the NSA played a key role in expanding America’s commitment to the Vietnam War by providing evidence of a North Vietnamese attack on the American destroyer USS Maddox during the Gulf of Tonkin incident.[30]

A secret operation, code-named “MINARET“, was set up by the NSA to monitor the phone communications of Senators Frank Church and Howard Baker, as well as major civil rights leaders, including Martin Luther King, Jr., and prominent U.S. journalists and athletes who criticized the Vietnam War.[31] However, the project turned out to be controversial, and an internal review by the NSA concluded that its Minaret program was “disreputable if not outright illegal”.[31]

The NSA mounted a major effort to secure tactical communications among U.S. forces during the war with mixed success. The NESTOR family of compatible secure voice systems it developed was widely deployed during the Vietnam War, with about 30,000 NESTOR sets produced. However a variety of technical and operational problems limited their use, allowing the North Vietnamese to exploit intercepted U.S. communications.[32]:Vol I, p.79

Church Committee hearings

Further information: Watergate scandal and Church Committee

In the aftermath of the Watergate scandal, a congressional hearing in 1975 led by Sen. Frank Church[33] revealed that the NSA, in collaboration with Britain’s SIGINT intelligence agency Government Communications Headquarters (GCHQ), had routinely intercepted the international communications of prominent anti-Vietnam war leaders such as Jane Fonda and Dr. Benjamin Spock.[34] Following the resignation of President Richard Nixon, there were several investigations of suspected misuse of FBI, CIA and NSA facilities.[35] Senator Frank Church uncovered previously unknown activity,[35]such as a CIA plot (ordered by the administration of President John F. Kennedy) to assassinate Fidel Castro.[36] The investigation also uncovered NSA’s wiretaps on targeted American citizens.[37]

After the Church Committee hearings, the Foreign Intelligence Surveillance Act of 1978 was passed into law. This was designed to limit the practice of mass surveillance in the United States.[35]

From 1980s to 1990s

In 1986, the NSA intercepted the communications of the Libyan government during the immediate aftermath of the Berlin discotheque bombing. The White House asserted that the NSA interception had provided “irrefutable” evidence that Libya was behind the bombing, which U.S. President Ronald Reagan cited as a justification for the 1986 United States bombing of Libya.[38][39]

In 1999, a multi-year investigation by the European Parliament highlighted the NSA’s role in economic espionage in a report entitled ‘Development of Surveillance Technology and Risk of Abuse of Economic Information’.[40] That year, the NSA founded the NSA Hall of Honor, a memorial at the National Cryptologic Museum in Fort Meade, Maryland.[41] The memorial is a, “tribute to the pioneers and heroes who have made significant and long-lasting contributions to American cryptology”.[41] NSA employees must be retired for more than fifteen years to qualify for the memorial.[41]

NSA’s infrastructure deteriorated in the 1990s as defense budget cuts resulted in maintenance deferrals. On January 24, 2000, NSA headquarters suffered a total network outage for three days caused by an overloaded network. Incoming traffic was successfully stored on agency servers, but it could not be directed and processed. The agency carried out emergency repairs at a cost of $3 million to get the system running again. (Some incoming traffic was also directed instead to Britain’s GCHQ for the time being.) Director Michael Hayden called the outage a “wake-up call” for the need to invest in the agency’s infrastructure.[42]

War on Terror

After Osama bin Laden moved to Afghanistan in the 1980s, the NSA recorded all of his phone calls via satellite, logging over 2,000 minutes of conversation[43]

In the aftermath of the September 11 attacks, the NSA created new IT systems to deal with the flood of information from new technologies like the Internet and cellphones. ThinThread contained advanced data mining capabilities. It also had a “privacy mechanism”; surveillance was stored encrypted; decryption required a warrant. The research done under this program may have contributed to the technology used in later systems. ThinThread was cancelled when Michael Hayden chose Trailblazer, which did not include ThinThread’s privacy system.[44]

Trailblazer Project ramped up in 2002. SAIC, Boeing, CSC, IBM, and Litton worked on it. Some NSA whistleblowers complained internally about major problems surrounding Trailblazer. This led to investigations by Congress and the NSA and DoD Inspectors General. The project was cancelled in early 2004. Several whistleblowers were later arrested and charged with violating federal espionage laws.

Turbulence started in 2005. It was developed in small, inexpensive “test” pieces, rather than one grand plan like Trailblazer. It also included offensive cyber-warfare capabilities, like injecting malware into remote computers. Congress criticized Turbulence in 2007 for having similar bureaucratic problems as Trailblazer.[45] It was to be a realization of information processing at higher speeds in cyberspace.[46]

Global surveillance disclosures

The massive extent of the NSA’s spying, both foreign and domestic, was revealed to the public in a series of detailed disclosures of internal NSA documents beginning in June 2013. Most of the disclosures were leaked by former NSA contractor, Edward Snowden.

Scope of surveillance

It was revealed that the NSA intercepts telephone and Internet communications of over a billion people worldwide, seeking information on terrorism as well as foreign politics, economics[47] and “commercial secrets”.[48] In a declassified document it was revealed that 17,835 phone lines were on an improperly permitted “alert list” from 2006 to 2009 in breach of compliance, which tagged these phone lines for daily monitoring.[49][50][51] Eleven percent of these monitored phone lines met the agency’s legal standard for “reasonably articulable suspicion” (RAS).[49][52]

A dedicated unit of the NSA locates targets for the CIA for extrajudicial assassination in the Middle East.[53] The NSA has also spied extensively on the European Union, the United Nations and numerous governments including allies and trading partners in Europe, South America and Asia.[54][55]

The NSA tracks the locations of hundreds of millions of cellphones per day, allowing it to map people’s movements and relationships in detail.[56]It reportedly has access to all communications made via Google, Microsoft, Facebook, Yahoo, YouTube, AOL, Skype, Apple and Paltalk,[57] and collects hundreds of millions of contact lists from personal email and instant messaging accounts each year.[58] It has also managed to weaken much of the encryption used on the Internet (by collaborating with, coercing or otherwise infiltrating numerous technology companies), so that the majority of Internet privacy is now vulnerable to the NSA and other attackers.[59][60]

Domestically, the NSA collects and stores metadata records of phone calls,[61] including over 120 million US Verizon subscribers,[62] as well as Internet communications,[57] relying on a secret interpretation of the Patriot Act whereby the entirety of US communications may be considered “relevant” to a terrorism investigation if it is expected that even a tiny minority may relate to terrorism.[63] The NSA supplies foreign intercepts to the DEA, IRS and other law enforcement agencies, who use these to initiate criminal investigations. Federal agents are then instructed to “recreate” the investigative trail via parallel construction.[64]

The NSA also spies on influential Muslims to obtain information that could be used to discredit them, such as their use of pornography. The targets, both domestic and abroad, are not suspected of any crime but hold religious or political views deemed “radical” by the NSA.[65]

Although NSA’s surveillance activities are controversial, government agencies and private enterprises have common needs, and sometimes cooperate at subtle and complex technical levels. Big data is becoming more advantageous, justifying the cost of required computer hardware, and social media lead the trend. The interests of NSA and Silicon Valley began to converge as advances in computer storage technology drastically reduced the costs of storing enormous amounts of data and at the same time the value of the data for use in consumer marketing began to rise. On the other hand, social media sites are growing as voluntary data mining operations on a scale that rivals or exceeds anything the government could attempt on its own.[66]

According to a report in The Washington Post in July 2014, relying on information provided by Snowden, 90% of those placed under surveillance in the U.S. are ordinary Americans, and are not the intended targets. The newspaper said it had examined documents including emails, text messages, and online accounts that support the claim.[67]

Legal accountability

Despite President Obama’s claims that these programs have congressional oversight, members of Congress were unaware of the existence of these NSA programs or the secret interpretation of the Patriot Act, and have consistently been denied access to basic information about them.[68] Obama has also claimed that there are legal checks in place to prevent inappropriate access of data and that there have been no examples of abuse;[69] however, the secret FISC court charged with regulating the NSA’s activities is, according to its chief judge, incapable of investigating or verifying how often the NSA breaks even its own secret rules.[70] It has since been reported that the NSA violated its own rules on data access thousands of times a year, many of these violations involving large-scale data interceptions;[71] and that NSA officers have even used data intercepts to spy on love interests.[72] The NSA has “generally disregarded the special rules for disseminating United States person information” by illegally sharing its intercepts with other law enforcement agencies.[73] A March 2009 opinion of the FISC court, released by court order, states that protocols restricting data queries had been “so frequently and systemically violated that it can be fairly said that this critical element of the overall … regime has never functioned effectively.”[74][75] In 2011 the same court noted that the “volume and nature” of the NSA’s bulk foreign Internet intercepts was “fundamentally different from what the court had been led to believe”.[73] Email contact lists (including those of US citizens) are collected at numerous foreign locations to work around the illegality of doing so on US soil.[58]

Legal opinions on the NSA’s bulk collection program have differed. In mid-December 2013, U.S. District Court Judge Richard Leon ruled that the “almost-Orwellian” program likely violates the Constitution, and wrote, “I cannot imagine a more ‘indiscriminate’ and ‘arbitrary invasion’ than this systematic and high-tech collection and retention of personal data on virtually every single citizen for purposes of querying and analyzing it without prior judicial approval. Surely, such a program infringes on ‘that degree of privacy’ that the Founders enshrined in the Fourth Amendment. Indeed, I have little doubt that the author of our Constitution, James Madison, who cautioned us to beware ‘the abridgement of freedom of the people by gradual and silent encroachments by those in power,’ would be aghast.”[76]

Later that month, U.S. District Judge William Pauley ruled that the NSA’s collection of telephone records is legal and valuable in the fight against terrorism. In his opinion, he wrote, “a bulk telephony metadata collection program [is] a wide net that could find and isolate gossamer contacts among suspected terrorists in an ocean of seemingly disconnected data” and noted that a similar collection of data prior to 9/11 might have prevented the attack.[77]

An October 2014 United Nations report condemned mass surveillance by the United States and other countries as violating multiple international treaties and conventions that guarantee core privacy rights.[78]

Official responses

On March 20, 2013 the Director of National Intelligence, Lieutenant General James Clapper, testified before Congress that the NSA does not wittingly collect any kind of data on millions or hundreds of millions of Americans, but he retracted this in June after details of the PRISM program were published, and stated instead that meta-data of phone and Internet traffic are collected, but no actual message contents.[79] This was corroborated by the NSA Director, General Keith Alexander, before it was revealed that the XKeyscore program collects the contents of millions of emails from US citizens without warrant, as well as “nearly everything a user does on the Internet”. Alexander later admitted that “content” is collected, but stated that it is simply stored and never analyzed or searched unless there is “a nexus to al-Qaida or other terrorist groups”.[69]

Regarding the necessity of these NSA programs, Alexander stated on June 27 that the NSA’s bulk phone and Internet intercepts had been instrumental in preventing 54 terrorist “events”, including 13 in the US, and in all but one of these cases had provided the initial tip to “unravel the threat stream”.[80] On July 31 NSA Deputy Director John Inglis conceded to the Senate that these intercepts had not been vital in stopping any terrorist attacks, but were “close” to vital in identifying and convicting four San Diego men for sending US$8,930 to Al-Shabaab, a militia that conducts terrorism in Somalia.[81][82][83]

The U.S. government has aggressively sought to dismiss and challenge Fourth Amendment cases raised against it, and has granted retroactive immunity to ISPs and telecoms participating in domestic surveillance.[84][85] The U.S. military has acknowledged blocking access to parts of The Guardian website for thousands of defense personnel across the country,[86][87] and blocking the entire Guardian website for personnel stationed throughout Afghanistan, the Middle East, and South Asia.[88]

Organizational structure

Michael S. Rogers, the director of the NSA.

The NSA is led by the Director of the National Security Agency (DIRNSA), who also serves as Chief of the Central Security Service (CHCSS) and Commander of the United States Cyber Command (USCYBERCOM) and is the highest-ranking military official of these organizations. He is assisted by a Deputy Director, who is the highest-ranking civilian within the NSA/CSS.

NSA also has an Inspector General, head of the Office of the Inspector General (OIG), a General Counsel, head of the Office of the General Counsel (OGC) and a Director of Compliance, who is head of the Office of the Director of Compliance (ODOC).[89]

Unlike other intelligence organizations such as CIA or DIA, NSA has always been particularly reticent concerning its internal organizational structure.

As of the mid-1990s, the National Security Agency was organized into five Directorates:

  • The Operations Directorate, which was responsible for SIGINT collection and processing.
  • The Technology and Systems Directorate, which develops new technologies for SIGINT collection and processing.
  • The Information Systems Security Directorate, which was responsible for NSA’s communications and information security missions.
  • The Plans, Policy and Programs Directorate, which provided staff support and general direction for the Agency.
  • The Support Services Directorate, which provided logistical and administrative support activities.[90]

Each of these directorates consisted of several groups or elements, designated by a letter. There were for example the A Group, which was responsible for all SIGINT operations against the Soviet Union and Eastern Europe, and G Group, which was responsible for SIGINT related to all non-communist countries. These groups were divided in units designated by an additional number, like unit A5 for breaking Soviet codes, and G6, being the office for the Middle East, North Africa, Cuba, Central and South America.[91][92]

Structure

As of 2013, NSA has about a dozen directorates, which are designated by a letter, although not all of them are publicly known. The directorates are divided in divisions and units starting with the letter of the parent directorate, followed by a number for the division, the sub-unit or a sub-sub-unit.

The main elements of the organizational structure of the NSA are:[93]

  • F – Directorate only known from unit F6, the Special Collection Service (SCS), which is a joint program created by CIA and NSA in 1978 to facilitate clandestine activities such as bugging computers throughout the world, using the expertise of both agencies.[94]
  • G – Directorate only known from unit G112, the office that manages the Senior Span platform, attached to the U2 spy planes.[95]
  • I – Information Assurance Directorate (IAD), which ensures availability, integrity, authentication, confidentiality, and non-repudiation of national security and telecommunications and information systems (national security systems).
  • J – Directorate only known from unit J2, the Cryptologic Intelligence Unit
  • L – Installation and Logistics
  • M – Human Resources
  • Q – Security and Counterintelligence
  • R – Research Directorate, which conducts research on signals intelligence and on information assurance for the U.S. Government.[96]
  • S – Signals Intelligence Directorate (SID), which is responsible for the collection, analysis, production and dissemination of signals intelligence. This directorate is led by a director and a deputy director. The SID consists of the following divisions:
    • S1 – Customer Relations
    • S2 – Analysis and Production Centers, with the following so-called Product Lines:
      • S2A: South Asia, S2B: China and Korea, S2C: International Security, S2E: Middle East/Asia, S2F: International Crime, S2G: Counter-proliferation, S2H: Russia, S2I: Counter-terrorism, S2J: Weapons and Space, S2T: Current Threats
    • S3 – Data Acquisition, with these divisions for the main collection programs:
      • S31 – Cryptanalysis and Exploitation Services (CES)
      • S32 – Tailored Access Operations (TAO), which hacks into foreign computers to conduct cyber-espionage and reportedly is “the largest and arguably the most important component of the NSA’s huge Signal Intelligence (SIGINT) Directorate, consisting of over 1,000 military and civilian computer hackers, intelligence analysts, targeting specialists, computer hardware and software designers, and electrical engineers.”[97]
      • S33 – Global Access Operations (GAO), which is responsible for intercepts from satellites and other international SIGINT platforms.[98] A tool which details and maps the information collected by this unit is code-named Boundless Informant.
      • S34 – Collections Strategies and Requirements Center
      • S35 – Special Source Operations (SSO), which is responsible for domestic and compartmented collection programs, like for example the PRISM program.[98] Special Source Operations is also mentioned in connection to the FAIRVIEW collection program.[99]
  • T – Technical Directorate (TD)
  • Directorate for Education and Training
  • Directorate for Corporate Leadership
  • Foreign Affairs Directorate, which acts as liaison with foreign intelligence services, counter-intelligence centers and the UKUSA-partners.
  • Acquisitions and Procurement Directorate
  • Information Sharing Services (ISS), led by a chief and a deputy chief.[100]

In the year 2000, a leadership team was formed, consisting of the Director, the Deputy Director and the Directors of the Signals Intelligence (SID), the Information Assurance (IAD) and the Technical Directorate (TD). The chiefs of other main NSA divisions became associate directors of the senior leadership team.[101]

After president George W. Bush initiated the President’s Surveillance Program (PSP) in 2001, the NSA created a 24-hour Metadata Analysis Center (MAC), followed in 2004 by the Advanced Analysis Division (AAD), with the mission of analyzing content, Internet metadata and telephone metadata. Both units were part of the Signals Intelligence Directorate.[102]

A 2016 proposal would combine the Signals Intelligence Directorate with the Information Assurance Directorate into a Directorate of Operations.[103]

Watch centers

The NSA maintains at least two watch centers:

  • National Security Operations Center (NSOC), which is the NSA’s current operations center and focal point for time-sensitive SIGINT reporting for the United States SIGINT System (USSS). This center was established in 1968 as the National SIGINT Watch Center (NSWC) and renamed into National SIGINT Operations Center (NSOC) in 1973. This “nerve center of the NSA” got its current name in 1996.[104]
  • NSA/CSS Threat Operations Center (NTOC), which is the primary NSA/CSS partner for Department of Homeland Security response to cyber incidents. The NTOC establishes real-time network awareness and threat characterization capabilities to forecast, alert, and attribute malicious activity and enable the coordination of Computer Network Operations. The NTOC was established in 2004 as a joint Information Assurance and Signals Intelligence project.[105]

Employees

The number of NSA employees is officially classified[4] but there are several sources providing estimates. In 1961, NSA had 59,000 military and civilian employees, which grew to 93,067 in 1969, of which 19,300 worked at the headquarters at Fort Meade. In the early 1980s NSA had roughly 50,000 military and civilian personnel. By 1989 this number had grown again to 75,000, of which 25,000 worked at the NSA headquarters. Between 1990 and 1995 the NSA’s budget and workforce were cut by one third, which led to a substantial loss of experience.[106]

In 2012, the NSA said more than 30,000 employees worked at Fort Meade and other facilities.[2] In 2012, John C. Inglis, the deputy director, said that the total number of NSA employees is “somewhere between 37,000 and one billion” as a joke,[4] and stated that the agency is “probably the biggest employer of introverts.”[4] In 2013 Der Spiegel stated that the NSA had 40,000 employees.[5] More widely, it has been described as the world’s largest single employer of mathematicians.[107] Some NSA employees form part of the workforce of the National Reconnaissance Office (NRO), the agency that provides the NSA with satellite signals intelligence.

As of 2013 about 1,000 system administrators work for the NSA.[108]

Security issues

The NSA received criticism early on in 1960 after two agents had defected to the Soviet Union. Investigations by the House Un-American Activities Committee and a special subcommittee of the United States House Committee on Armed Services revealed severe cases of ignorance in personnel security regulations, prompting the former personnel director and the director of security to step down and leading to the adoption of stricter security practices.[109] Nonetheless, security breaches reoccurred only a year later when in an issue of Izvestia of July 23, 1963, a former NSA employee published several cryptologic secrets.

The very same day, an NSA clerk-messenger committed suicide as ongoing investigations disclosed that he had sold secret information to the Soviets on a regular basis. The reluctance of Congressional houses to look into these affairs had prompted a journalist to write, “If a similar series of tragic blunders occurred in any ordinary agency of Government an aroused public would insist that those responsible be officially censured, demoted, or fired.” David Kahn criticized the NSA’s tactics of concealing its doings as smug and the Congress’ blind faith in the agency’s right-doing as shortsighted, and pointed out the necessity of surveillance by the Congress to prevent abuse of power.[109]

Edward Snowden‘s leaking of the existence of PRISM in 2013 caused the NSA to institute a “two-man rule“, where two system administrators are required to be present when one accesses certain sensitive information.[108] Snowden claims he suggested such a rule in 2009.[110]

Polygraphin

Defense Security Service (DSS) polygraph brochure given to NSA applicants

The NSA conducts polygraph tests of employees. For new employees, the tests are meant to discover enemy spies who are applying to the NSA and to uncover any information that could make an applicant pliant to coercion.[111] As part of the latter, historically EPQs or “embarrassing personal questions” about sexual behavior had been included in the NSA polygraph.[111] The NSA also conducts five-year periodic reinvestigation polygraphs of employees, focusing on counterintelligence programs. In addition the NSA conducts periodic polygraph investigations in order to find spies and leakers; those who refuse to take them may receive “termination of employment”, according to a 1982 memorandum from the director of the NSA.[112]

File:NSApolygraphvideo.webm

NSA-produced video on the polygraph process

There are also “special access examination” polygraphs for employees who wish to work in highly sensitive areas, and those polygraphs cover counterintelligence questions and some questions about behavior.[112] NSA’s brochure states that the average test length is between two and four hours.[113] A 1983 report of the Office of Technology Assessment stated that “It appears that the NSA [National Security Agency] (and possibly CIA) use the polygraph not to determine deception or truthfulness per se, but as a technique of interrogation to encourage admissions.”[114]Sometimes applicants in the polygraph process confess to committing felonies such as murder, rape, and selling of illegal drugs. Between 1974 and 1979, of the 20,511 job applicants who took polygraph tests, 695 (3.4%) confessed to previous felony crimes; almost all of those crimes had been undetected.[111]

In 2010 the NSA produced a video explaining its polygraph process.[115] The video, ten minutes long, is titled “The Truth About the Polygraph” and was posted to the Web site of the Defense Security Service. Jeff Stein of The Washington Post said that the video portrays “various applicants, or actors playing them — it’s not clear — describing everything bad they had heard about the test, the implication being that none of it is true.”[116] AntiPolygraph.org argues that the NSA-produced video omits some information about the polygraph process; it produced a video responding to the NSA video.[115] George Maschke, the founder of the Web site, accused the NSA polygraph video of being “Orwellian“.[116]

After Edward Snowden revealed his identity in 2013, the NSA began requiring polygraphing of employees once per quarter.[117]

Arbitrary firing

The number of exemptions from legal requirements has been criticized. When in 1964 the Congress was hearing a bill giving the director of the NSA the power to fire at will any employee,The Washington Post wrote: “This is the very definition of arbitrariness. It means that an employee could be discharged and disgraced on the basis of anonymous allegations without the slightest opportunity to defend himself.” Yet, the bill was accepted by an overwhelming majority.[109]

Insignia and memorials

Seal of the U.S. National Security Agency.svg

The heraldic insignia of NSA consists of an eagle inside a circle, grasping a key in its talons.[118] The eagle represents the agency’s national mission.[118] Its breast features a shield with bands of red and white, taken from the Great Seal of the United States and representing Congress.[118] The key is taken from the emblem of Saint Peter and represents security.[118]

When the NSA was created, the agency had no emblem and used that of the Department of Defense.[119] The agency adopted its first of two emblems in 1963.[119] The current NSA insignia has been in use since 1965, when then-Director, LTG Marshall S. Carter (USA) ordered the creation of a device to represent the agency.[120]

The NSA’s flag consists of the agency’s seal on a light blue background.

National Cryptologic Memorial

Crews associated with NSA missions have been involved in a number of dangerous and deadly situations.[121] The USS Liberty incident in 1967 and USS Pueblo incident in 1968 are examples of the losses endured during the Cold War.[121]

The National Security Agency/Central Security Service Cryptologic Memorial honors and remembers the fallen personnel, both military and civilian, of these intelligence missions.[122] It is made of black granite, and has 171 names carved into it, as of 2013 .[122] It is located at NSA headquarters. A tradition of declassifying the stories of the fallen was begun in 2001.[122]

NSANet (NSA’s intranet)

Behind the Green Door – Secure communications room with separate computer terminals for access to SIPRNET, GWAN, NSANET, and JWICS

NSANet stands for National Security Agency Network and is the official NSA intranet.[123] It is a classified network,[124] for information up to the level of TS/SCI[125] to support the use and sharing of intelligence data between NSA and the signals intelligence agencies of the four other nations of the Five Eyes partnership. The management of NSANet has been delegated to the Central Security Service Texas (CSSTEXAS).[126]

NSANet is a highly secured computer network consisting of fiber-optic and satellite communication channels which are almost completely separated from the public Internet. The network allows NSA personnel and civilian and military intelligence analysts anywhere in the world to have access to the agency’s systems and databases. This access is tightly controlled and monitored. For example, every keystroke is logged, activities are audited at random and downloading and printing of documents from NSANet are recorded.[127]

In 1998, NSANet, along with NIPRNET and SIPRNET, had “significant problems with poor search capabilities, unorganized data and old information”.[128] In 2004, the network was reported to have used over twenty commercial off-the-shelf operating systems.[129] Some universities that do highly sensitive research are allowed to connect to it.[130]

The thousands of Top Secret internal NSA documents that were taken by Edward Snowden in 2013 were stored in “a file-sharing location on the NSA’s intranet site” so they could easily be read online by NSA personnel. Everyone with a TS/SCI-clearance had access to these documents and as a system administrator, Snowden was responsible for moving accidentally misplaced highly sensitive documents to more secure storage locations.[131]

National Computer Security Center

The DoD Computer Security Center was founded in 1981 and renamed the National Computer Security Center (NCSC) in 1985. NCSC was responsible for computer security throughout the federal government.[132] NCSC was part of NSA,[133] and during the late 1980s and the 1990s, NSA and NCSC published Trusted Computer System Evaluation Criteria in a six-foot high Rainbow Series of books that detailed trusted computing and network platform specifications.[134] The Rainbow books were replaced by the Common Criteria, however, in the early 2000s.[134]

Facilities

Headquarters

National Security Agency headquarters in Fort Meade, 2013

Headquarters for the National Security Agency is located at 39°6′32″N 76°46′17″W in Fort George G. Meade, Maryland, although it is separate from other compounds and agencies that are based within this same military installation. Ft. Meade is about 20 mi (32 km) southwest of Baltimore,[135] and 25 mi (40 km) northeast of Washington, DC.[136] The NSA has its own exit off Maryland Route 295 South labeled “NSA Employees Only”.[137][138] The exit may only be used by people with the proper clearances, and security vehicles parked along the road guard the entrance.[139]

NSA is the largest employer in the U.S. state of Maryland, and two-thirds of its personnel work at Ft. Meade.[140] Built on 350 acres (140 ha; 0.55 sq mi)[141] of Ft. Meade’s 5,000 acres (2,000 ha; 7.8 sq mi),[142] the site has 1,300 buildings and an estimated 18,000 parking spaces.[136][143]

NSA headquarters building in Fort Meade (left), NSOC (right)

The main NSA headquarters and operations building is what James Bamford, author of Body of Secrets, describes as “a modern boxy structure” that appears similar to “any stylish office building.”[144] The building is covered with one-way dark glass, which is lined with copper shielding in order to prevent espionage by trapping in signals and sounds.[144] It contains 3,000,000 square feet (280,000 m2), or more than 68 acres (28 ha), of floor space; Bamford said that the U.S. Capitol “could easily fit inside it four times over.”[144]

The facility has over 100 watchposts,[145] one of them being the visitor control center, a two-story area that serves as the entrance.[144] At the entrance, a white pentagonal structure,[146] visitor badges are issued to visitors and security clearances of employees are checked.[147] The visitor center includes a painting of the NSA seal.[146]

The OPS2A building, the tallest building in the NSA complex and the location of much of the agency’s operations directorate, is accessible from the visitor center. Bamford described it as a “dark glass Rubik’s Cube“.[148] The facility’s “red corridor” houses non-security operations such as concessions and the drug store. The name refers to the “red badge” which is worn by someone without a security clearance. The NSA headquarters includes a cafeteria, a credit union, ticket counters for airlines and entertainment, a barbershop, and a bank.[146] NSA headquarters has its own post office, fire department, and police force.[149][150][151]

The employees at the NSA headquarters reside in various places in the Baltimore-Washington area, including Annapolis, Baltimore, and Columbia in Maryland and the District of Columbia, including the Georgetown community.[152]

Power consumption

Due to massive amounts of data processing, NSA is the largest electricity consumer in Maryland.[140]

Following a major power outage in 2000, in 2003 and in follow-ups through 2007, The Baltimore Sun reported that the NSA was at risk of electrical overload because of insufficient internal electrical infrastructure at Fort Meade to support the amount of equipment being installed. This problem was apparently recognized in the 1990s but not made a priority, and “now the agency’s ability to keep its operations going is threatened.”[153]

Baltimore Gas & Electric (BGE, now Constellation Energy) provided NSA with 65 to 75 megawatts at Ft. Meade in 2007, and expected that an increase of 10 to 15 megawatts would be needed later that year.[154] In 2011, NSA at Ft. Meade was Maryland’s largest consumer of power.[140] In 2007, as BGE’s largest customer, NSA bought as much electricity as Annapolis, the capital city of Maryland.[153]

One estimate put the potential for power consumption by the new Utah Data Center at US$40 million per year.[155]

History of headquarters

Headquarters at Fort Meade circa 1950s

When the agency was established, its headquarters and cryptographic center were in the Naval Security Station in Washington, D.C. The COMINT functions were located in Arlington Hall in Northern Virginia, which served as the headquarters of the U.S. Army‘s cryptographic operations.[156]Because the Soviet Union had detonated a nuclear bomb and because the facilities were crowded, the federal government wanted to move several agencies, including the AFSA/NSA. A planning committee considered Fort Knox, but Fort Meade, Maryland, was ultimately chosen as NSA headquarters because it was far enough away from Washington, D.C. in case of a nuclear strike and was close enough so its employees would not have to move their families.[157]

Construction of additional buildings began after the agency occupied buildings at Ft. Meade in the late 1950s, which they soon outgrew.[157] In 1963 the new headquarters building, nine stories tall, opened. NSA workers referred to the building as the “Headquarters Building” and since the NSA management occupied the top floor, workers used “Ninth Floor” to refer to their leaders.[158] COMSEC remained in Washington, D.C., until its new building was completed in 1968.[157] In September 1986, the Operations 2A and 2B buildings, both copper-shielded to prevent eavesdropping, opened with a dedication by President Ronald Reagan.[159] The four NSA buildings became known as the “Big Four.”[159] The NSA director moved to 2B when it opened.[159]

Fort Meade shooting[edit]

On March 30, 2015, shortly before 9 am, a stolen sports utility vehicle approached an NSA police vehicle blocking the road near the gate of Fort Meade, after it was told to leave the area. NSA officers fired on the SUV, killing the 27-year-old driver, Ricky Hall (a transgender person also known as Mya), and seriously injuring his 20-year-old male passenger. An NSA officer’s arm was injured when Hall subsequently crashed into his vehicle.[160][161]

The two, dressed in women’s clothing after a night of partying at a motel with the man they’d stolen the SUV from that morning, “attempted to drive a vehicle into the National Security Agency portion of the installation without authorization”, according to an NSA statement.[162] FBI spokeswoman Amy Thoreson said the incident is not believed to be related to terrorism.[163]In June 2015 the FBI closed its investigation into the incident and federal prosecutors have declined to bring charges against anyone involved.[164]

An anonymous police official told The Washington Post, “This was not a deliberate attempt to breach the security of NSA. This was not a planned attack.” The two are believed to have made a wrong turn off the highway, while fleeing from the motel after stealing the vehicle. A small amount of cocaine was found in the SUV. A local CBS reporter initially said a gun was found,[165]but her later revision does not.[166] Dozens of journalists were corralled into a parking lot blocks away from the scene, and were barred from photographing the area.[167]

Computing[edit]

In 1995, The Baltimore Sun reported that the NSA is the owner of the single largest group of supercomputers.[168]

NSA held a groundbreaking ceremony at Ft. Meade in May 2013 for its High Performance Computing Center 2, expected to open in 2016.[169] Called Site M, the center has a 150 megawatt power substation, 14 administrative buildings and 10 parking garages.[149] It cost $3.2 billion and covers 227 acres (92 ha; 0.355 sq mi).[149] The center is 1,800,000 square feet (17 ha; 0.065 sq mi)[149] and initially uses 60 megawatts of electricity.[170]

Increments II and III are expected to be completed by 2030, and would quadruple the space, covering 5,800,000 square feet (54 ha; 0.21 sq mi) with 60 buildings and 40 parking garages.[149] Defense contractors are also establishing or expanding cybersecurity facilities near the NSA and around the Washington metropolitan area.[149]

Other U.S. facilities

Buckley Air Force Base in Colorado

Utah Data Center

As of 2012, NSA collected intelligence from four geostationary satellites.[155] Satellite receivers were at Roaring Creek Station in Catawissa, Pennsylvania and Salt Creek Station in Arbuckle, California.[155] It operated ten to twenty taps on U.S. telecom switches. NSA had installations in several U.S. states and from them observed intercepts from Europe, the Middle East, North Africa, Latin America, and Asia.[155]

NSA had facilities at Friendship Annex (FANX) in Linthicum, Maryland, which is a 20 to 25-minute drive from Ft. Meade;[171] the Aerospace Data Facility at Buckley Air Force Base in Aurora outside Denver, Colorado; NSA Texas in the Texas Cryptology Center at Lackland Air Force Base in San Antonio, Texas; NSA Georgia at Fort Gordon in Augusta, Georgia; NSA Hawaii in Honolulu; the Multiprogram Research Facility in Oak Ridge, Tennessee, and elsewhere.[152][155]

On January 6, 2011 a groundbreaking ceremony was held to begin construction on NSA’s first Comprehensive National Cyber-security Initiative (CNCI) Data Center, known as the “Utah Data Center” for short. The $1.5B data center is being built at Camp Williams, Utah, located 25 miles (40 km) south of Salt Lake City, and will help support the agency’s National Cyber-security Initiative.[172] It is expected to be operational by September 2013.[155]

In 2009, to protect its assets and to access more electricity, NSA sought to decentralize and expand its existing facilities in Ft. Meade and Menwith Hill,[173] the latter expansion expected to be completed by 2015.[174]

The Yakima Herald-Republic cited Bamford, saying that many of NSA’s bases for its Echelon program were a legacy system, using outdated, 1990s technology.[175] In 2004, NSA closed its operations at Bad Aibling Station (Field Station 81) in Bad Aibling, Germany.[176] In 2012, NSA began to move some of its operations at Yakima Research Station, Yakima Training Center, in Washington state to Colorado, planning to leave Yakima closed.[177] As of 2013, NSA also intended to close operations at Sugar Grove, West Virginia.[175]

International stations

RAF Menwith Hill has the largest NSA presence in the United Kingdom.[174]

Following the signing in 1946–1956[178] of the UKUSA Agreement between the United States, United Kingdom, Canada, Australia and New Zealand, who then cooperated on signals intelligence and ECHELON,[179] NSA stations were built at GCHQ Bude in Morwenstow, United Kingdom; Geraldton, Pine Gap and Shoal Bay, Australia; Leitrim and Ottawa, Canada; Misawa, Japan; and Waihopai and Tangimoana,[180] New Zealand.[181]

NSA operates RAF Menwith Hill in North Yorkshire, United Kingdom, which was, according to BBC News in 2007, the largest electronic monitoring station in the world.[182] Planned in 1954, and opened in 1960, the base covered 562 acres (227 ha; 0.878 sq mi) in 1999.[183]

The agency’s European Cryptologic Center (ECC), with 240 employees in 2011, is headquartered at a US military compound in Griesheim, near Frankfurt in Germany. A 2011 NSA report indicates that the ECC is responsible for the “largest analysis and productivity in Europe” and focusses on various priorities, including Africa, Europe, the Middle East and counterterrorism operations.[184]

In 2013, a new Consolidated Intelligence Center, also to be used by NSA, is being built at the headquarters of the United States Army Europe in Wiesbaden, Germany.[185] NSA’s partnership with Bundesnachrichtendienst (BND), the German foreign intelligence service, was confirmed by BND president Gerhard Schindler.[185]

Thailand

Thailand is a “3rd party partner” of the NSA along with nine other nations.[186] These are non-English-speaking countries that have made security agreements for the exchange of SIGINT raw material and end product reports.

Thailand is the site of at least two US SIGINT collection stations. One is at the US Embassy in Bangkok, a joint NSA-CIA Special Collection Service (SCS) unit. It presumably eavesdrops on foreign embassies, governmental communications, and other targets of opportunity.[187]

The second installation is a FORNSAT (foreign satellite interception) station in the Thai city of Khon Kaen. It is codenamed INDRA, but has also been referred to as LEMONWOOD.[187] The station is approximately 40 ha (100 acres) in size and consists of a large 3,700–4,600 m2 (40,000–50,000 ft2) operations building on the west side of the ops compound and four radome-enclosed parabolic antennas. Possibly two of the radome-enclosed antennas are used for SATCOM intercept and two antennas used for relaying the intercepted material back to NSA. There is also a PUSHER-type circularly-disposed antenna array (CDAA) array just north of the ops compound.[188][189]

NSA activated Khon Kaen in October 1979. Its mission was to eavesdrop on the radio traffic of Chinese army and air force units in southern China, especially in and around the city of Kunming in Yunnan Province. Back in the late 1970s the base consisted only of a small CDAA antenna array that was remote-controlled via satellite from the NSA listening post at Kunia, Hawaii, and a small force of civilian contractors from Bendix Field Engineering Corp. whose job it was to keep the antenna array and satellite relay facilities up and running 24/7.[188]

According to the papers of the late General William Odom, the INDRA facility was upgraded in 1986 with a new British-made PUSHER CDAA antenna as part of an overall upgrade of NSA and Thai SIGINT facilities whose objective was to spy on the neighboring communist nations of Vietnam, Laos, and Cambodia.[188]

The base apparently fell into disrepair in the 1990s as China and Vietnam became more friendly towards the US, and by 2002 archived satellite imagery showed that the PUSHER CDAA antenna had been torn down, perhaps indicating that the base had been closed. At some point in the period since 9/11, the Khon Kaen base was reactivated and expanded to include a sizeable SATCOM intercept mission. It is likely that the NSA presence at Khon Kaen is relatively small, and that most of the work is done by civilian contractors.[188]

Mission

NSA’s eavesdropping mission includes radio broadcasting, both from various organizations and individuals, the Internet, telephone calls, and other intercepted forms of communication. Its secure communications mission includes military, diplomatic, and all other sensitive, confidential or secret government communications.[190]

According to the Washington Post, “[e]very day, collection systems at the National Security Agency intercept and store 1.7 billion e-mails, phone calls and other types of communications. The NSA sorts a fraction of those into 70 separate databases.”[191]

Because of its listening task, NSA/CSS has been heavily involved in cryptanalytic research, continuing the work of predecessor agencies which had broken many World War II codes and ciphers (see, for instance, Purple, Venona project, and JN-25).

In 2004, NSA Central Security Service and the National Cyber Security Division of the Department of Homeland Security (DHS) agreed to expand NSA Centers of Academic Excellence in Information Assurance Education Program.[192]

As part of the National Security Presidential Directive 54/Homeland Security Presidential Directive 23 (NSPD 54), signed on January 8, 2008 by President Bush, the NSA became the lead agency to monitor and protect all of the federal government’s computer networks from cyber-terrorism.[9]

Operations

Operations by the National Security Agency can be divided in three types:

  • Collection overseas, which falls under the responsibility of the Global Access Operations (GAO) division.
  • Domestic collection, which falls under the responsibility of the Special Source Operations (SSO) division.
  • Hacking operations, which falls under the responsibility of the Tailored Access Operations (TAO) division.

Collection overseas

Echelon

Main article: ECHELON

Echelon was created in the incubator of the Cold War.[193] Today it is a legacy system, and several NSA stations are closing.[175]

NSA/CSS, in combination with the equivalent agencies in the United Kingdom (Government Communications Headquarters), Canada (Communications Security Establishment), Australia (Defence Signals Directorate), and New Zealand (Government Communications Security Bureau), otherwise known as the UKUSA group,[194] was reported to be in command of the operation of the so-called ECHELON system. Its capabilities were suspected to include the ability to monitor a large proportion of the world’s transmitted civilian telephone, fax and data traffic.[195]

During the early 1970s, the first of what became more than eight large satellite communications dishes were installed at Menwith Hill.[196] Investigative journalist Duncan Campbell reported in 1988 on the ECHELON surveillance program, an extension of the UKUSA Agreement on global signals intelligence SIGINT, and detailed how the eavesdropping operations worked.[197] In November 3, 1999 the BBC reported that they had confirmation from the Australian Government of the existence of a powerful “global spying network” code-named Echelon, that could “eavesdrop on every single phone call, fax or e-mail, anywhere on the planet” with Britain and the United States as the chief protagonists. They confirmed that Menwith Hill was “linked directly to the headquarters of the US National Security Agency (NSA) at Fort Meade in Maryland”.[198]

NSA’s United States Signals Intelligence Directive 18 (USSID 18) strictly prohibited the interception or collection of information about “… U.S. persons, entities, corporations or organizations….” without explicit written legal permission from the United States Attorney General when the subject is located abroad, or the Foreign Intelligence Surveillance Court when within U.S. borders. Alleged Echelon-related activities, including its use for motives other than national security, including political and industrial espionage, received criticism from countries outside the UKUSA alliance.[199][200]

Protesters against NSA data mining in Berlin wearing Chelsea Manning and Edward Snowden masks.

Other SIGINT operations overseas

The NSA is also involved in planning to blackmail people with “SEXINT“, intelligence gained about a potential target’s sexual activity and preferences. Those targeted had not committed any apparent crime nor were charged with one.[201]

In order to support its facial recognition program, the NSA is intercepting “millions of images per day”.[202]

The Real Time Regional Gateway is a data collection program introduced in 2005 in Iraq by NSA during the Iraq War that consisted of gathering all electronic communication, storing it, then searching and otherwise analyzing it. It was effective in providing information about Iraqi insurgents who had eluded less comprehensive techniques.[203] This “collect it all” strategy introduced by NSA director, Keith B. Alexander, is believed by Glenn Greenwald of The Guardian to be the model for the comprehensive worldwide mass archiving of communications which NSA is engaged in as of 2013.[204]

BoundlessInformant

Edward Snowden revealed in June 2013 that between February 8 and March 8, 2013, the NSA collected about 124.8 billion telephone data items and 97.1 billion computer data items throughout the world, as was displayed in charts from an internal NSA tool codenamed Boundless Informant. It was reported that some of these data reflected eavesdropping on citizens in countries like Germany, Spain and France.[205]

BoundlessInformant employs big data databases, cloud computing technology, and Free and Open Source Software (FOSS) to analyze data collected worldwide by the NSA.[206]

Bypassing encryption

In 2013, reporters uncovered a secret memo that claims the NSA created and pushed for the adoption of the Dual_EC_DRBG encryption standard that contained built-in vulnerabilities in 2006 to the United States National Institute of Standards and Technology (NIST), and the International Organization for Standardization (aka ISO).[207][208] This memo appears to give credence to previous speculation by cryptographers at Microsoft Research.[209] Edward Snowden claims that the NSA often bypasses encryption altogether by lifting information before it is encrypted or after it is decrypted.[208]

XKeyscore rules (as specified in a file xkeyscorerules100.txt, sourced by German TV stations NDR and WDR, who claim to have excerpts from its source code) reveal that the NSA tracks users of privacy-enhancing software tools, including Tor; an anonymous email service provided by the MIT Computer Science and Artificial Intelligence Laboratory (CSAIL) in Cambridge, Massachusetts; and readers of the Linux Journal.[210][211]

Domestic activity

NSA’s mission, as set forth in Executive Order 12333 in 1981, is to collect information that constitutes “foreign intelligence or counterintelligence” while not “acquiring information concerning the domestic activities of United States persons”. NSA has declared that it relies on the FBI to collect information on foreign intelligence activities within the borders of the United States, while confining its own activities within the United States to the embassies and missions of foreign nations.[212] The appearance of a ‘Domestic Surveillance Directorate’ of the NSA was soon exposed as a hoax in 2013.[213][214]

NSA’s domestic surveillance activities are limited by the requirements imposed by the Fourth Amendment to the U.S. Constitution. The Foreign Intelligence Surveillance Court for example held in October 2011, citing multiple Supreme Court precedents, that the Fourth Amendment prohibitions against unreasonable searches and seizures applies to the contents of all communications, whatever the means, because “a person’s private communications are akin to personal papers.”[215] However, these protections do not apply to non-U.S. persons located outside of U.S. borders, so the NSA’s foreign surveillance efforts are subject to far fewer limitations under U.S. law.[216] The specific requirements for domestic surveillance operations are contained in the Foreign Intelligence Surveillance Act of 1978 (FISA), which does not extend protection to non-U.S. citizens located outside of U.S. territory.[216]

George W. Bush administration

George W. Bush, president during the 9/11 terrorist attacks, approved the Patriot Act shortly after the attacks to take anti-terrorist security measures. Title 1, 2, and 9 specifically authorized measures that would be taken by the NSA. These titles granted enhanced domestic security against terrorism, surveillance procedures, and improved intelligence, respectively. On March 10, 2004, there was a debate between President Bush and White House Counsel Alberto Gonzales, Attorney General John Ashcroft, and Acting Attorney General James Comey. The Attorney Generals were unsure if the NSA’s programs could be considered constitutional. They threatened to resign over the matter, but ultimately the NSA’s programs continued.[217] On March 11, 2004, President Bush signed a new authorization for mass surveillance of Internet records, in addition to the surveillance of phone records.This allowed the president to be able to override laws such as the Foreign Intelligence Surveillance Act, which protected civilians from mass surveillance. In addition to this, President Bush also signed that the measures of mass surveillance were also retroactively in place.[218]

Warrantless wiretaps

On December 16, 2005, The New York Times reported that, under White House pressure and with an executive order from President George W. Bush, the National Security Agency, in an attempt to thwart terrorism, had been tapping phone calls made to persons outside the country, without obtaining warrants from the United States Foreign Intelligence Surveillance Court, a secret court created for that purpose under the Foreign Intelligence Surveillance Act (FISA).[219]

One such surveillance program, authorized by the U.S. Signals Intelligence Directive 18 of President George Bush, was the Highlander Project undertaken for the National Security Agency by the U.S. Army 513th Military Intelligence Brigade. NSA relayed telephone (including cell phone) conversations obtained from ground, airborne, and satellite monitoring stations to various U.S. Army Signal Intelligence Officers, including the 201st Military Intelligence Battalion. Conversations of citizens of the U.S. were intercepted, along with those of other nations.[220]

Proponents of the surveillance program claim that the President has executive authority to order such action, arguing that laws such as FISA are overridden by the President’s Constitutional powers. In addition, some argued that FISA was implicitly overridden by a subsequent statute, the Authorization for Use of Military Force, although the Supreme Court’s ruling in Hamdan v. Rumsfeld deprecates this view. In the August 2006 case ACLU v. NSA, U.S. District Court Judge Anna Diggs Taylor concluded that NSA’s warrantless surveillance program was both illegal and unconstitutional. On July 6, 2007 the 6th Circuit Court of Appeals vacated the decision on the grounds that the ACLU lacked standing to bring the suit.[221]

On January 17, 2006, the Center for Constitutional Rights filed a lawsuit, CCR v. Bush, against the George W. Bush Presidency. The lawsuit challenged the National Security Agency’s (NSA’s) surveillance of people within the U.S., including the interception of CCR emails without securing a warrant first.[222][223]

In September 2008, the Electronic Frontier Foundation (EFF) filed a class action lawsuit against the NSA and several high-ranking officials of the Bush administration,[224] charging an “illegal and unconstitutional program of dragnet communications surveillance,”[225] based on documentation provided by former AT&T technician Mark Klein.[226]

As a result of the USA Freedom Act passed by Congress in June 2015, the NSA had to shut down its bulk phone surveillance program on November 29 of the same year. The USA Freedom Act forbids the NSA to collect metadata and content of phone calls unless it has a warrant for terrorism investigation. In that case the agency has to ask the telecom companies for the record, which will only be kept for six months.

AT&T Internet monitoring

In May 2006, Mark Klein, a former AT&T employee, alleged that his company had cooperated with NSA in installing Narus hardware to replace the FBI Carnivore program, to monitor network communications including traffic between American citizens.[227]

Data mining

NSA was reported in 2008 to use its computing capability to analyze “transactional” data that it regularly acquires from other government agencies, which gather it under their own jurisdictional authorities. As part of this effort, NSA now monitors huge volumes of records of domestic email data, web addresses from Internet searches, bank transfers, credit-card transactions, travel records, and telephone data, according to current and former intelligence officials interviewed by The Wall Street Journal. The sender, recipient, and subject line of emails can be included, but the content of the messages or of phone calls are not.[228]

A 2013 advisory group for the Obama administration, seeking to reform NSA spying programs following the revelations of documents released by Edward J. Snowden.[229] mentioned in ‘Recommendation 30’ on page 37, “…that the National Security Council staff should manage an interagency process to review on a regular basis the activities of the US Government regarding attacks that exploit a previously unknown vulnerability in a computer application.” Retired cyber security expert Richard A. Clarke was a group member and stated on April 11 that NSA had no advance knowledge of Heartbleed.[230]

Illegally obtained evidence

In August 2013 it was revealed that a 2005 IRS training document showed that NSA intelligence intercepts and wiretaps, both foreign and domestic, were being supplied to the Drug Enforcement Administration (DEA) and Internal Revenue Service (IRS) and were illegally used to launch criminal investigations of US citizens. Law enforcement agents were directed to conceal how the investigations began and recreate an apparently legal investigative trail by re-obtaining the same evidence by other means.[231][232]

Barack Obama administration

In the months leading to April 2009, the NSA intercepted the communications of American citizens, including a Congressman, although the Justice Department believed that the interception was unintentional. The Justice Department then took action to correct the issues and bring the program into compliance with existing laws.[233] United States Attorney General Eric Holder resumed the program according to his understanding of the Foreign Intelligence Surveillance Act amendment of 2008, without explaining what had occurred.[234]

Polls conducted in June 2013 found divided results among Americans regarding NSA’s secret data collection.[235] Rasmussen Reports found that 59% of Americans disapprove,[236] Gallup found that 53% disapprove,[237] and Pew found that 56% are in favor of NSA data collection.[238]

Section 215 metadata collection

On April 25, 2013, the NSA obtained a court order requiring Verizon‘s Business Network Services to provide metadata on all calls in its system to the NSA “on an ongoing daily basis” for a three-month period, as reported by The Guardian on June 6, 2013. This information includes “the numbers of both parties on a call … location data, call duration, unique identifiers, and the time and duration of all calls” but not “[t]he contents of the conversation itself”. The order relies on the so-called “business records” provision of the Patriot Act.[239][240]

In August 2013, following the Snowden leaks, new details about the NSA’s data mining activity were revealed. Reportedly, the majority of emails into or out of the United States are captured at “selected communications links” and automatically analyzed for keywords or other “selectors”. Emails that do not match are deleted.[241]

The utility of such a massive metadata collection in preventing terrorist attacks is disputed. Many studies reveal the dragnet like system to be ineffective. One such report, released by the New America Foundation concluded that after an analysis of 225 terrorism cases, the NSA “had no discernible impact on preventing acts of terrorism.”[242]

Defenders of the program say that while metadata alone can’t provide all the information necessary to prevent an attack, it assures the ability to “connect the dots”[243] between suspect foreign numbers and domestic numbers with a speed only the NSA’s software is capable of. One benefit of this is quickly being able to determine the difference between suspicious activity and real threats.[citation needed] As an example, NSA director General Keith Alexander mentioned at the annual Cybersecurity Summit in 2013, that metadata analysis of domestic phone call records after the Boston Marathon bombing helped determine that[clarification needed] another attack in New York was baseless.[243]

In addition to doubts about its effectiveness, many people argue that the collection of metadata is an unconstitutional invasion of privacy. As of 2015, the collection process remains legal and grounded in the ruling from Smith v. Maryland (1979). A prominent opponent of the data collection and its legality is U.S. District Judge Richard J. Leon, who issued a report in 2013[244] in which he stated: “I cannot imagine a more ‘indiscriminate’ and ‘arbitrary invasion’ than this systematic and high tech collection and retention of personal data on virtually every single citizen for purposes of querying and analyzing it without prior judicial approval…Surely, such a program infringes on ‘that degree of privacy’ that the founders enshrined in the Fourth Amendment”.

The PRISM program[edit]

PRISM: a clandestine surveillance program under which the NSA collects user data from companies like Microsoft and Facebook.

Under the PRISM program, which started in 2007,[245][246] NSA gathers Internet communications from foreign targets from nine major U.S. Internet-based communication service providers: Microsoft,[247] Yahoo, Google, Facebook, PalTalk, AOL, Skype, YouTube and Apple. Data gathered include email, video and voice chat, videos, photos, VoIP chats such as Skype, and file transfers.

June 2015 – WikiLeaks: Industrial espionage

In June 2015, Wikileaks published documents, which showed that NSA spied on French companies.[248]

July 2015 – WikiLeaks: Espionage against German federal ministries[edit]

In July 2015, WikiLeaks published documents, which showed that NSA spied on federal German ministries since 1990s.[249][250] Even Germany’s Chancellor Angela Merkel‘s cellphones and phone of her predecessors had been intercepted.[251]

Claims of prevented terrorist attacks

Former NSA director General Keith Alexander claimed that in September 2009 the NSA prevented Najibullah Zazi and his friends from carrying out a terrorist attack.[252] However, this claim has been debunked and no evidence has been presented demonstrating that the NSA has ever been instrumental in preventing a terrorist attack.[253][254][255][256]

Hacking operations

Besides the more traditional ways of eavesdropping in order to collect signals intelligence, NSA is also engaged in hacking computers, smartphones and their networks. These operations are conducted by the Tailored Access Operations (TAO) division.

NSA’s China hacking group

According to the Foreign Policy magazine, “… the Office of Tailored Access Operations, or TAO, has successfully penetrated Chinese computer and telecommunications systems for almost 15 years, generating some of the best and most reliable intelligence information about what is going on inside the People’s Republic of China.”[257][258]

Syrian internet blackout

In an interview with Wired magazine, Edward Snowden said the Tailored Access Operations division accidentally caused Syria‘s internet blackout in 2012.[259]

Suspected responsibility for hacking operations by the Equation Group[edit]

The espionage group named the Equation Group, described by discoverers Kaspersky Labs as one of the most advanced (if not the most advanced) in the world as of 2015,[260]:31 and connected to over 500 malware infections in at least 42 countries over many years, is suspected of being a part of NSA.[261][262] The group’s known espionage methods have been documented to include interdiction (interception of legitimate CDs sent by a scientific conference organizer by mail),[260]:15 and the “unprecedented” ability to infect and be transmitted through the hard drive firmware of several of the major hard drive manufacturers, and create and use hidden disk areas and virtual disk systems for its purposes, a feat demanding access to the manufacturer’s source code of each to achieve.[260]:16–18 The methods used to deploy the tools demonstrated “surgical precision”, going so far as to exclude specific countries by IP and allow targeting of specific usernames on discussion forums.[260]:23–26 The techniques and knowledge used by the Equation Group are considered in summary to be “out of the reach of most advanced threat groups in the world except [this group].[260]:31

Software backdoors

Linux kerne

Linus Torvalds, the founder of Linux kernel, joked during a LinuxCon keynote on September 18, 2013 that the NSA, who are the founder of SELinux, wanted a backdoor in the kernel.[263]However, later, Linus’ father, a Member of the European Parliament (MEP), revealed that the NSA actually did this.[264]

When my oldest son [Linus Torvalds] was asked the same question: “Has he been approached by the NSA about backdoors?” he said “No”, but at the same time he nodded. Then he was sort of in the legal free. He had given the right answer, [but] everybody understood that the NSA had approached him.

— Nils Torvalds, LIBE Committee Inquiry on Electronic Mass Surveillance of EU Citizens – 11th Hearing, 11 November 2013[265]
Microsoft Windows
Main article: _NSAKEY

_NSAKEY was a variable name discovered in Microsoft‘s Windows NT 4 Service Pack 5 (which had been released unstripped of its symbolic debugging data) in August 1999 by Andrew D. Fernandes of Cryptonym Corporation. That variable contained a 1024-bit public key.

IBM Notes

IBM Notes was the first widely adopted software product to use public key cryptography for client–server and server–server authentication and for encryption of data. Until US laws regulating encryption were changed in 2000, IBM and Lotus were prohibited from exporting versions of Notes that supported symmetric encryption keys that were longer than 40 bits. In 1997, Lotus negotiated an agreement with the NSA that allowed export of a version that supported stronger keys with 64 bits, but 24 of the bits were encrypted with a special key and included in the message to provide a “workload reduction factor” for the NSA. This strengthened the protection for users of Notes outside the US against private-sector industrial espionage, but not against spying by the US government.[266][267]

Boomerang routing

While it is assumed that foreign transmissions terminating in the U.S. (such as a non-U.S. citizen accessing a U.S. website) subject non-U.S. citizens to NSA surveillance, recent research into boomerang routing has raised new concerns about the NSA’s ability to surveil the domestic Internet traffic of foreign countries.[18] Boomerang routing occurs when an Internet transmission that originates and terminates in a single country transits another. Research at the University of Toronto has suggested that approximately 25% of Canadian domestic traffic may be subject to NSA surveillance activities as a result of the boomerang routing of Canadian Internet service providers.[18]

Hardware implanting

Intercepted packages are opened carefully by NSA employees
A “load station” implanting a beacon

A document included in NSA files released with Glenn Greenwald‘s book No Place to Hide details how the agency’s Tailored Access Operations (TAO) and other NSA units gain access to hardware. They intercept routers, servers and other network hardware being shipped to organizations targeted for surveillance and install covert implant firmware onto them before they are delivered. This was described by an NSA manager as “some of the most productive operations in TAO because they preposition access points into hard target networks around the world.”[268]

Computers seized by the NSA due to interdiction are often modified with a physical device known as Cottonmouth.[269]Cottonmouth is a device that can be inserted in the USB port of a computer in order to establish remote access to the targeted machine. According to NSA’s Tailored Access Operations (TAO) group implant catalog, after implanting Cottonmouth, the NSA can establish Bridging (networking) “that allows the NSA to load exploit software onto modified computers as well as allowing the NSA to relay commands and data between hardware and software implants.”[270]

Role in scientific research and development[

NSA has been involved in debates about public policy, both indirectly as a behind-the-scenes adviser to other departments, and directly during and after Vice Admiral Bobby Ray Inman‘s directorship. NSA was a major player in the debates of the 1990s regarding the export of cryptography in the United States. Restrictions on export were reduced but not eliminated in 1996.

Its secure government communications work has involved the NSA in numerous technology areas, including the design of specialized communications hardware and software, production of dedicated semiconductors (at the Ft. Meade chip fabrication plant), and advanced cryptography research. For 50 years, NSA designed and built most of its computer equipment in-house, but from the 1990s until about 2003 (when the U.S. Congress curtailed the practice), the agency contracted with the private sector in the fields of research and equipment.[271]

Data Encryption Standard

FROSTBURG was the NSA’s first supercomputer, used from 1991 to 1997

NSA was embroiled in some minor controversy concerning its involvement in the creation of the Data Encryption Standard (DES), a standard and public block cipher algorithm used by the U.S. government and banking community. During the development of DES by IBM in the 1970s, NSA recommended changes to some details of the design. There was suspicion that these changes had weakened the algorithm sufficiently to enable the agency to eavesdrop if required, including speculation that a critical component—the so-called S-boxes—had been altered to insert a “backdoor” and that the reduction in key length might have made it feasible for NSA to discover DES keys using massive computing power. It has since been observed that the S-boxes in DES are particularly resilient against differential cryptanalysis, a technique which was not publicly discovered until the late 1980s, but which was known to the IBM DES team.

The United States Senate Select Committee on Intelligence reviewed NSA’s involvement, and concluded that while the agency had provided some assistance, it had not tampered with the design.[272][273] In late 2009 NSA declassified information stating that “NSA worked closely with IBM to strengthen the algorithm against all except brute force attacks and to strengthen substitution tables, called S-boxes. Conversely, NSA tried to convince IBM to reduce the length of the key from 64 to 48 bits. Ultimately they compromised on a 56-bit key.”[274][275]

Advanced Encryption Standard

The involvement of NSA in the selection of a successor to Data Encryption Standard (DES), the Advanced Encryption Standard (AES), was limited to hardware performance testing (see AES competition).[276] NSA has subsequently certified AES for protection of classified information (for at most two levels, e.g. SECRET information in an unclassified environment[clarification needed]) when used in NSA-approved systems.[277]

NSA encryption systems

STU-III secure telephones on display at the National Cryptologic Museum

The NSA is responsible for the encryption-related components in these legacy systems:

  • FNBDT Future Narrow Band Digital Terminal[278]
  • KL-7 ADONIS off-line rotor encryption machine (post-WWII – 1980s)[279][280]
  • KW-26 ROMULUS electronic in-line teletypewriter encryptor (1960s–1980s)[281]
  • KW-37 JASON fleet broadcast encryptor (1960s–1990s)[280]
  • KY-57 VINSON tactical radio voice encryptor[281]
  • KG-84 Dedicated Data Encryption/Decryption[281]
  • STU-III secure telephone unit,[281] phased out by the STE[282]

The NSA oversees encryption in following systems which are in use today:

The NSA has specified Suite A and Suite B cryptographic algorithm suites to be used in U.S. government systems; the Suite B algorithms are a subset of those previously specified by NIST and are expected to serve for most information protection purposes, while the Suite A algorithms are secret and are intended for especially high levels of protection.[277]

SHA

The widely used SHA-1 and SHA-2 hash functions were designed by NSA. SHA-1 is a slight modification of the weaker SHA-0 algorithm, also designed by NSA in 1993. This small modification was suggested by NSA two years later, with no justification other than the fact that it provides additional security. An attack for SHA-0 that does not apply to the revised algorithm was indeed found between 1998 and 2005 by academic cryptographers. Because of weaknesses and key length restrictions in SHA-1, NIST deprecates its use for digital signatures, and approves only the newer SHA-2 algorithms for such applications from 2013 on.[287]

A new hash standard, SHA-3, has recently been selected through the competition concluded October 2, 2012 with the selection of Keccak as the algorithm. The process to select SHA-3 was similar to the one held in choosing the AES, but some doubts have been cast over it,[288][289] since fundamental modifications have been made to Keccak in order to turn it into a standard.[290] These changes potentially undermine the cryptanalysis performed during the competition and reduce the security levels of the algorithm.[288]

Dual_EC_DRBG random number generator

Main article: Dual_EC_DRBG

NSA promoted the inclusion of a random number generator called Dual_EC_DRBG in the U.S. National Institute of Standards and Technology‘s 2007 guidelines. This led to speculation of a backdoor which would allow NSA access to data encrypted by systems using that pseudo random number generator.[291]

This is now deemed to be plausible based on the fact that the output of the next iterations of the PRNG can provably be determined if the relation between two internal elliptic curve points is known.[292][293] Both NIST and RSA are now officially recommending against the use of this PRNG.[294][295]

Clipper chip

Main article: Clipper chip

Because of concerns that widespread use of strong cryptography would hamper government use of wiretaps, NSA proposed the concept of key escrow in 1993 and introduced the Clipper chip that would offer stronger protection than DES but would allow access to encrypted data by authorized law enforcement officials.[296] The proposal was strongly opposed and key escrow requirements ultimately went nowhere.[297] However, NSA’s Fortezza hardware-based encryption cards, created for the Clipper project, are still used within government, and NSA ultimately declassified and published the design of the Skipjack cipher used on the cards.[298][299]

Perfect Citizen

Main article: Perfect Citizen

Perfect Citizen is a program to perform vulnerability assessment by the NSA on U.S. critical infrastructure.[300][301] It was originally reported to be a program to develop a system of sensors to detect cyber attacks on critical infrastructure computer networks in both the private and public sector through a network monitoring system named Einstein.[302][303] It is funded by the Comprehensive National Cybersecurity Initiative and thus far Raytheon has received a contract for up to $100 million for the initial stage.

Academic research

NSA has invested many millions of dollars in academic research under grant code prefix MDA904, resulting in over 3,000 papers (as of 2007-10-11). NSA/CSS has, at times, attempted to restrict the publication of academic research into cryptography; for example, the Khufu and Khafre block ciphers were voluntarily withheld in response to an NSA request to do so. In response to a FOIA lawsuit, in 2013 the NSA released the 643-page research paper titled, “Untangling the Web: A Guide to Internet Research,[304] ” written and compiled by NSA employees to assist other NSA workers in searching for information of interest to the agency on the public Internet.[305]

Patents

NSA has the ability to file for a patent from the U.S. Patent and Trademark Office under gag order. Unlike normal patents, these are not revealed to the public and do not expire. However, if the Patent Office receives an application for an identical patent from a third party, they will reveal NSA’s patent and officially grant it to NSA for the full term on that date.[306]

One of NSA’s published patents describes a method of geographically locating an individual computer site in an Internet-like network, based on the latency of multiple network connections.[307] Although no public patent exists, NSA is reported to have used a similar locating technology called trilateralization that allows real-time tracking of an individual’s location, including altitude from ground level, using data obtained from cellphone towers.[308]

Legality

File:Ron Wyden and James Clapper - 12 March 2013.webm

Excerpt of James Clapper‘s false testimony to Congress on NSA surveillance programs

In the United States, at least since 2001,[309] there has been legal controversy over what signal intelligence can be used for and how much freedom the National Security Agency has to use signal intelligence.[310] The government has made, in 2015, slight changes in how it uses and collects certain types of data,[311] specifically phone records. President Barack Obama has asked lawyers and his national security team to look at the tactics that are being used by the NSA. President Obama made a speech on January 17, 2014 where he defended the national security measures, including the NSA, and their intentions for keeping the country safe through surveillance. He said that it is difficult to determine where the line should be drawn between what is too much surveillance and how much is needed for national security because technology is ever changing and evolving. Therefore, the laws cannot keep up with the rapid advancements.

President Obama did make some changes to national security regulations and how much data can be collected and surveyed.[citation needed] The first thing he added, was more presidential directive and oversight so that privacy and basic rights are not violated. The president would look over requests on behalf of American citizens to make sure that their personal privacy is not violated by the data that is being requested. Secondly, surveillance tactics and procedures are becoming more public, including over 40 rulings of the FISC that have been declassified.[citation needed] Thirdly, further protections are being placed on activities that are justified under Section 702, such as the ability to retain, search and use data collected in investigations, which allows the NSA to monitor and intercept interaction of targets overseas. Finally, national security letters, which are secret requests for information that the FBI uses in their investigations, are becoming less secretive. The secrecy of the information requested will not be indefinite and will terminate after a set time if future secrecy is not required.[citation needed] Concerning the bulk surveillance of American’s phone records, President Obama also ordered a transition from bulk surveillance under Section 215 to a new policy that will eliminate unnecessary bulk collection of metadata.

As of May 7, 2015, the U.S. Court of Appeals for the Second Circuit ruled that the interpretation of Section 215 of the Patriot Act was wrong and that the NSA program that has been collecting Americans’ phone records in bulk is illegal.[312] It stated that Section 215 cannot be clearly interpreted to allow government to collect national phone data and, as a result, expired on June 1, 2015. This ruling “is the first time a higher-level court in the regular judicial system has reviewed the N.S.A. phone records program.” [313] The new bill getting passed later in May taking its place is known as the U.S.A. Freedom Act, which will enable the NSA to continue hunting for terrorists by analyzing telephone links between callers but “keep the bulk phone records in the hands of phone companies.”[313] This would give phone companies the freedom to dispose the records in an 18-month period. The White House argued that this new ruling validated President Obama’s support of the government being extracted from bulk data collection and giving power to the telecommunications companies.

Previously, the NSA paid billions of dollars to telecommunications companies in order to collect data from them.[314] While companies such as Google and Yahoo! claim that they do not provide “direct access” from their servers to the NSA unless under a court order,[315] the NSA had access to emails, phone calls and cellular data users.[316] With this new ruling, telecommunications companies would not provide the NSA with bulk information. The companies would allow the disposal of data in every 18 months,[313] which is arguably putting the telecommunications companies at a higher advantage.

This ruling made the collecting of phone records illegal, but it did not rule on Section 215’s constitutionality. Senate Majority Leader Mitch McConnell has already put forth a new bill to re-authorize the Patriot Act.[317] Defenders of this surveillance program are claiming that judges who sit on the Foreign Intelligence Surveillance Court (FISC) had ruled 37 times that this kind of collection of data is, in fact, lawful.[317] The FISC is the court specifically mandated to grant surveillance orders in the name of foreign intelligence. The new ruling made by the Second District Court of Appeals now retroactively dismisses the findings of the FISC on this program.

See also

Notes

https://en.wikipedia.org/wiki/National_Security_Agency

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Progressive Interventionist Neoconservative Warmonger Senator John McCain — Let The NATO Nations Defend Themselves and Pay For Their Own Defense — Progressive Democrats and Republicans Have Given The American People The Warfare and Welfare State and Replaced The Constitutional American Republic With A Declining and Falling American Empire of The Two Party Tyranny — $20 Trillion in Debt and Unfunced Liabilities Exceeding $210 Trillion and Growing — A Day of Reckoning — United States Is Bankrupt — Steve Bannon and President Trump Know It — Videos

Posted on March 16, 2017. Filed under: Articles, Banking, Blogroll, Books, Business, Communications, Computers, Congress, conservatives, Constitution, Corruption, Culture, Demographics, Diasters, Documentary, Economics, History of Economic Thought, Investments, Macroeconomics, Microeconomics, Monetary Policy, Money, Non-Fiction, Technology, Unemployment, Video, War, Wealth, Weather, Welfare, Wisdom, World War II, Writing | Tags: , , , , , , , , , , , , , , , , , , , , , , |

 “It is our true policy to steer clear of permanent alliance with any portion of the foreign world”

~George Washington

 “Peace, commerce, and honest friendship with all nations-entangling alliances with none.”

~Thomas Jefferson

Image result for quotes george washington on steer clear of permanent alliancesImage result for quotes george washington on alliances

Image result for NATO map

Image result for NATO list of countries and date joined

Image result for NATO list of countries and date joined

Image result for NATO list of countries and date joined

Image result for NATO list of countries and date joined

Image result for quotes george washington on alliances

Image result for quotes george washington on alliancesImage result for thomas jefferson on debt burdening future generationsImage result for thomas jefferson on debt burdening future generations

National Debt Clock

Image result

Sen McCain on Sen. Paul: “The Senator from Kentucky is now working for Vladimir Putin.” (C-SPAN)

Rand Paul ‘John McCain is proof we need term limits’

[youtube3=https://www.youtube.com/watch?v=AGT4wCmKjas]

RAND PAUL VS. JOHN MCCAIN: RAND REACTS TO MCCAIN’S RUSSIAN AGENT CLAIM!!

Rand Paul: McCain ‘past his prime,’ maybe ‘unhinged’

Pence: Time For Allies To Pay Fair Share For NATO

Other NATO members need to pay their fair share?

Trump complains at NATO countries for not paying defense share

Congressman Ron Paul, MD – We’ve Been NeoConned

Steve Bannon Lays Out His AMAZING Political Philosophy

Published on Nov 18, 2016

Speech by Stephen K. Bannon (Steve Bannon), Donald Trump’s senior strategic advisor and architect of his winning 2016 election. In this speech delivered to the Liberty Restoration Foundation, Bannon layed out the poliitical philosophy both he and Trump embrace, and which appealed to the American people in the election. It is conservative, perhaps explaining why the political liberal left has resorted to evidently incorrect allegations of antisemitism or racism to try to derail his appointment. Bannon was a Hollywood producer who invested in the Seinfeld comedy TV series, and later became the chair of the Brietbart News Service, expanding it into one of the leading news sources nationally, as an alternative to liberal media outlets that previously dominated US media. He joined the Trump campaign in June 2016, leading him to victory and the White House. Do you think that Bannon is racist, as the democrats have alleged?

Deficits, Debts and Unfunded Liabilities: The Consequences of Excessive Government Spending

Uploaded on May 10, 2010

Huge budget deficits and record levels of national debt are getting a lot of attention, but this video explains that unfunded liabilities for entitlement programs are Americas real red-ink challenge. More important, this CF&P mini-documentary reveals that deficits and debt are symptoms of the real problem of an excessive burden of government spending. http://www.freedomandprosperity.org

III – Unfunded Liabilities

Rhett Talks – Is the United States Bankrupt?

Laurence Kotlikoff at MTSU November 5, 2015

‘US hides real debt, in worse shape than Greece’

Unfunded Liabilities: James Cox of Silver Bullion interviews Professor Kotlikoff

The Actual Fiscal Gap Is Approximately $210 Trillion Dollars With All The Unfunded Liabilities, The Average Person, Every Man, Woman, And Child Owes……$666,666.667

8 years ago, when Obama took office, the Debt Clock was at 9 TRILLION Dollars.
Today, the US Debt Clock at almost 20 TRILLION Dollars.
http://www.usdebtclock.org/

This is an 87% increase.

The actual Fiscal Gap is approximately $210 TRILLION Dollars.
with all the unfunded liabilities.

With the population of the US is over 315 MILLION People, this means that the average person, every man, woman, and child owes……$666,666.667

Where does this lead?
Look at Brazil, Argentina, Cyprus, Greece, Italy,……

Who ends up with the bill?
THE TAXPAYER!

http://investmentwatchblog.com/the-actual-fiscal-gap-is-approximately-210-trillion-dollars-with-all-the-unfunded-liabilities-the-average-person-every-man-woman-and-child-owes-666666-667/

17 Nobel Laureates and 1200+ Economists Agree with Ben Carson re U.S. Fiscal Gap

I cover economics, personal, national, and international.

Michelle Lee, a fact checker with the Washington Post, just posted a long and, to my mind, highly political column. Her column, read carefully, undermines Presidential candidate Ben Carson’s absolutely correct claim, made in announcing his candidacy, that the true measure of U.S. fiscal debt is not the $13 trillion our government reports as its debt. Instead, our true debt is over $200 trillion. Obviously, most of this true debt has been kept off the books by our politicians.

In this column, I’m going to defend Dr. Carson’s statement. But I want to point out that I don’t know Dr. Carson. I have never spoken with him. And I don’t yet know enough about Dr. Carson’s positions to have a view about his overall suitability for President. I am, however, impressed that out of the gate he is talking about the right measure of our nation’s fiscal condition.

I spoke at length to Michelle Lee prior to her writing her column. She told me she was a fact checker. But when fact checking turns into disguised political commentary, there’s a problem. Fact checkers are supposed to check the facts with experts. When it comes to economics, the experts are PhD economists, not political organizations or people, without real economics training, parading as economists, both of which she quotes in undermining Dr. Carson’s credibility.

Now let me turn to the substance. In referring to $211 trillion in unfunded mandates, Dr. Carson was referencing my calculation of the U.S. fiscal gap. As I explained in a NY Times op ed, the U.S. fiscal gap is $210 trillion. So Dr. Carson was off by $1 trillion – by less than one half of one percent.

The fiscal gap is the present value of all projected future expenditures less the present value of all projected future taxes. The fiscal gap is calculated over the infinite horizon. But since future expenditures and taxes far off in the future are being discounted, their contribution to the fiscal gap is smaller the farther out one goes. The $210 trillion figure is based on the Congressional Budget Office’s July 2014 Alternative Fiscal Scenario projections, which I extended beyond their 75-year horizon.

Dr. Carson referenced $211 trillion as the size of “unfunded mandates.” Michelle Lee correctly points out that Dr. Carson was referencing the U.S. fiscal gap, not the present value of mandatory spending. What she knew (because I told her), but failed to say, is that the present value of mandatory spending is far larger than $210 trillion because the fiscal gap is a net, not a gross number.

Michelle Lee is not a PhD economist. Nor is Bruce Barlett, whose truly absurd statement about the debt being an asset she quotes. Yes, it’s an asset, but it’s an asset that young and future generations must pay off. Social Security benefits are also an asset to their recipients, but again, they must be paid off by people who aren’t getting the benefits.

Michelle Lee apparently takes Bruce Bartell’s views more seriously than the views of 17 Nobel Laureates in economics and over 1200 PhD economists from MIT, Harvard, Stanford, Chicago, Berkeley, Yale, Columbia, Penn, and lesser known universities and colleges around the country. Each of these economists has endorsed The Inform Act, a bi-partisan bill that requires the CBO, GAO, and OMB to do infinite horizon fiscal gap accounting on a routine and ongoing basis.

https://www.forbes.com/sites/kotlikoff/2015/05/13/17-nobel-laureates-and-1200-economists-agree-with-ben-carson-re-u-s-fiscal-gap/#46c13e954d17

National Debt

What You’ll Find

Comprehensive and meticulously documented facts about the national debt. Learn about various measures of the national debt, contributing factors, consequences, and more. For example:


Citation Generator

Introductory Notes

In keeping with the practice of the Congressional Budget Office and other federal agencies that deal with budget policy, many of the federal debt, spending, and revenue figures in this research are expressed as a portion of gross domestic product (GDP). This is because debates about the size of government and the effects of its debt are frequently centered upon how much of a nation’s economy is consumed by government. This measure also accounts for population growth, some of the effects of inflation, and the relative capacity of government to service its debt.

However, the federal government does not have the entire U.S. economy at its disposal to service federal debt. The private sector, which produces the goods and services that comprise most of the economy, utilizes some of these resources, and local and state governments also consume some of the nation’s GDP. Hence, this research sometimes expresses federal debt as a portion of annual federal revenues. This is a more direct measure of the federal government’s capacity to service its debt.

In keeping with Just Facts’ Standards of Credibility, all graphs in this research show the full range of available data, and all facts are cited based upon availability and relevance, not to slant results by singling out specific years that are different from others.

Click here for a video that summarizes some of the key facts in this research.

Quantifying the National Debt

* As of March 1, 2017, the official debt of the United States government is $19.9 trillion ($19,920,418,771,289).[1] This amounts to:

  • $61,365 for every person living in the U.S.[2]
  • $158,326 for every household in the U.S.[3]
  • 106% of the U.S. gross domestic product.[4]
  • 560% of annual federal revenues.[5]
Debt as a Portion of the Economy

[6]

* Publicly traded companies are legally required to account for “explicit” and “implicit” future obligations such as employee pensions and retirement benefits.[7] [8] [9] The federal budget, which is the “government’s primary financial planning and control tool,” is not bound by this rule.[10] [11]

* At the close of the federal government’s 2016 fiscal year (September 30, 2016), the federal government had roughly:

  • $8.5 trillion ($8,542,000,000,000) in liabilities that are not accounted for in the publicly held national debt, such as federal employee retirement benefits, accounts payable, and environmental/disposal liabilities.[12]
  • $29.0 trillion ($29,038,000,000,000) in obligations for current Social Security participants above and beyond projected revenues from their payroll and benefit taxes, certain transfers from the general fund of the U.S. Treasury, and assets of the Social Security trust fund.[13] [14]
  • $32.9 trillion ($32,900,000,000,000) in obligations for current Medicare participants above and beyond projected revenues from their payroll taxes, benefit taxes, premium payments, and assets of the Medicare trust fund.[15] [16]

* The figures above are determined in a manner that approximates how publicly traded companies are required to calculate their liabilities and obligations.[17] [18] [19] The obligations for Social Security and Medicare represent how much money must be immediately placed in interest-bearing investments to cover the projected shortfalls between dedicated revenues and expenditures for all current participants in these programs (both taxpayers and beneficiaries).[20] [21] [22]

* Combining the figures above with the national debt and subtracting the value of federal assets, the federal government had about $84.3 trillion ($84,306,000,000,000) in debts, liabilities, and unfunded obligations at the close of its 2016 fiscal year.[23]

* This $84.3 trillion shortfall is 93% of the combined net worth of all U.S. households and nonprofit organizations, including all assets in savings, real estate, corporate stocks, private businesses, and consumer durable goods such as automobiles and furniture.[24] [25]

* This shortfall equates to:

  • $260,382 for every person living in the U.S.[26]
  • $670,058 for every household in the U.S.[27]
  • 451% of the U.S. gross domestic product.[28]
  • 2,370% of annual federal revenues.[29]

* These figures do not account for the future costs implied by any current policies except those of the Social Security and Medicare programs.[30]

* These figures are based upon current federal law and “a wide range of complex assumptions” made by federal agencies.[31] Regarding this:

  • The Board of Social Security Trustees has stated that “significant uncertainty” surrounds the “best estimates” of future circumstances.”[32]
  • The Board of Medicare Trustees has stated that the program’s financial projections “are highly uncertain, especially when looking out more than several decades.”
  • The Board of Medicare Trustees has stated that the program’s long-term costs may be “substantially higher” than projected under current law. This is because current law includes the effects of the Affordable Care Act, which will cut Medicare prices for “many” healthcare services to “less than half of their level” under prior law. Per the Trustees:
Absent an unprecedented change in health care delivery systems and payment mechanisms, the prices paid by Medicare for health services will fall increasingly short of the costs of providing these services. … Before such an outcome would occur, lawmakers would likely intervene to prevent the withdrawal of providers from the Medicare market and the severe problems with beneficiary access to care that would result.[33]

Causes of the National Debt

Spending and Taxes

Current Expenditures and Receipts

† To measure the entirety of government expenditures and receipts, “total” instead of “current” figures are preferable, but such data (shown in the next graph) only extends back to 1960.[34]

‡ In 2015, receipts consisted of: 97% taxes; 2% premiums, settlements, donations, fines, fees, & penalties; 1% interest & dividends.[35]

[36]

* Data from the graph above:

Year Receipts
(Portion of GDP)
Expenditures
(Portion of GDP)
1930 3% 3%
1940 8% 9%
1950 16% 16%
1960 17% 17%
1970 17% 20%
1980 19% 22%
1990 18% 22%
2000 20% 19%
2010 16% 25%
2015 19% 22%

Total Expenditures and Receipts

[37]

* Data from the graph above:

Year Receipts
(Portion of GDP)
Expenditures
(Portion of GDP)
1960 18% 19%
1970 18% 21%
1980 19% 23%
1990 18% 22%
2000 20% 19%
2010 16% 27%
2015 19% 22%

Spending Distribution

Current Expenditures by Function

† Social programs include income security, healthcare, education, housing, and recreation.

‡ National defense includes military spending and veterans’ benefits.

§ General government and debt service includes the executive & legislative branches, tax collection, financial management, and interest payments.

# Economic affairs includes transportation, general economic & labor affairs, agriculture, natural resources, energy, and space. (This excludes spending for infrastructure projects such as new highways, which is not accounted for in this graph.[38])

£ Public order and safety includes police, fire, law courts, prisons, and immigration enforcement.

[39]

* Data from the graph above:

Category Portion of Total Federal Spending
1960 1970 1980 1990 2000 2010 2015
Social Programs 21% 32% 45% 44% 54% 61% 63%
National Defense 53% 42% 26% 25% 19% 20% 19%
General Government & Debt Service 19% 18% 21% 25% 21% 13% 13%
Economic Affairs & Infrastructure 6% 7% 7% 5% 5% 4% 4%
Public Order & Safety 0% 0% 1% 1% 1% 1% 1%

Tax Distribution

Effective Tax Rates by Income

NOTE: This data does not account for 7% of federal revenues that could not be allocated to households by income group.

[40]

* Data from the graph above:

Average Effective Federal Tax Burdens (2013)
Income Group Household Income Tax Rate Taxes Paid
Lowest 20% $25,400 3.3% $838
Second 20% $47,400 8.4% $3,982
Middle 20% $69,700 12.8% $8,922
Fourth 20% $103,700 17.0% $17,629
Highest 20% $265,000 26.3% $69,695

* Breakdown of the highest 20%:

Income Group Household Income Tax Rate Taxes Paid
81st – 90th $147,100 20.7% $30,450
91st – 95th $201,400 23.0% $46,322
96th – 99th $326,800 26.3% $85,948
Top 1 % $1,571,600 34.0% $534,344

Consequences

* As detailed in publications of the Congressional Budget Office, the Brookings Institution, and Princeton University Press, the following are some potential consequences of unchecked government debt:

  • reduced “future national income and living standards.”[41] [42] [43]
  • “reductions in spending” on “government programs.”[44]
  • “higher marginal tax rates.”[45]
  • “higher inflation” that increases “the size of future budget deficits” and decreases the “the purchasing power” of citizens’ savings and income.”[46] [47]
  • restricted “ability of policymakers to use fiscal policy to respond to unexpected challenges, such as economic downturns or international crises.”[48]
  • “losses for mutual funds, pension funds, insurance companies, banks, and other holders of federal debt.”[49]
  • increased “probability of a fiscal crisis in which investors would lose confidence in the government’s ability to manage its budget, and the government would be forced to pay much more to borrow money.”[50] [51]

* In 2012, the Journal of Economic Perspectives published a paper about the economic consequences of government debt. Using 2,000+ data points on national debt and economic growth in 20 advanced economies (such as the United States, France, and Japan) from 1800–2009, the authors found that countries with national debts above 90% of GDP averaged 34% less real annual economic growth than when their debts were below 90% of GDP.[52]

* The United States exceeded a debt/GDP level of 90% in the second quarter of 2010.[53]

* Per the textbook Microeconomics for Today:

GDP per capita provides a general index of a country’s standard of living. Countries with low GDP per capita and slow growth in GDP per capita are less able to satisfy basic needs for food, shelter, clothing, education, and health.[54]

* In 2013, the Political Economy Research Institute at the University of Massachusetts, Amherst, published a working paper about the economic consequences of government debt. Using data on national debt and economic growth in 20 advanced economies from 1946-2009, the authors found that countries with national debts over 90% of GDP averaged:

  • 31% less real annual economic growth than countries with debts from 60% to 90% of GDP,
  • 29% less real annual economic growth than countries with debts from 30% to 60% of GDP,
  • and 48% less real annual economic growth than countries with debts from 0% to 30% of GDP.[55]

* The authors of the above-cited papers have engaged in a heated dispute about the results of their respective papers and the effects of government debt on economic growth. Facts about these issues can be found in the Just Facts Daily article, “Do large national debts harm economies?

Politics

Responsibility

* The U.S. Constitution vests Congress with the powers to tax, spend, and pay the debts of the federal government. Legislation to carry out these functions must either be:

  • passed by majorities in both houses of Congress and approved by the President; or
  • passed by majorities in both houses of Congress, vetoed by the President, and then passed by two-thirds of both houses of Congress; or
  • passed by majorities in both houses of Congress and left unaddressed by the President for ten days.[56]

* Other factors impacting the national debt include but are not limited to legislation passed by previous congresses and presidents,[57] economic cycles, terrorist attacks, natural disasters, demographics, and the actions of U.S. citizens and foreign governments.[58]


Current Policies

* In 2014, the Congressional Budget Office (CBO) projected the debt that the U.S. government would accumulate under current federal policies.[59] The projection used the following assumptions:

  • Unemployment will incrementally decline from 6.8% in 2014 to 5.8% in 2018 and 5.3% in 2027, where it will remain thereafter.[60] (For reference, the average of the previous 40 years is 6.5%.[61])
  • GDP growth will incrementally decline from an average rate of 3.4% above the rate of inflation in 2015 to 1.9% in 2021 and remain constant thereafter.[62] (The average of the previous 40 years is 2.9%.[63])
  • Federal revenues (i.e., taxes) will incrementally increase from 17.4% of GDP in 2014 to 18.0% in 2024 and remain constant thereafter.[64] (The average of the previous 40 years is 17.4%.[65])
  • Federal spending will incrementally increase from 20.4% of GDP in 2014 to 23.6% in 2025 and 31.8% in 2040.[66] (The average of the previous 40 years is 20.5%.[67])
  • Payments for Medicare services will undergo scheduled reductions that would likely cause “severe problems with beneficiary access to care.”[68] [69]

* Combining these projections with historical data yields the following results:

Revenues and Spending Under Current Policies

[70]

Debt Under Current Policies

† To measure the entirety of the national debt, it would be preferable to show “gross” debt instead of “publicly held” debt, but this data is not presented in this report. Nonetheless, it would make little difference because the excluded debt primarily resides in federal government trust funds that dwindle and become insolvent during the projection period.[71] Facts regarding why and how the federal government keeps its books in this manner are covered in the section of this research entitled “Government Accounting.”

[72]

* Per CBO, postponing action to stabilize the debt will:

  • punish younger generations of Americans, because most of the burden would fall on them.
  • reward older generations of Americans, because “they would partly or entirely avoid the policy changes needed to stabilize the debt.”
  • “substantially increase the size of the policy adjustments needed to put the budget on a sustainable course.”[73] [74]

* The following Ph.D. economists and political scientists have claimed that the level of national debt during World War II is a good reason to not be overly concerned about the modern national debt:

  • Paul Davidson, editor of the Journal of Post Keynesian Economics and author of The Keynes Solution: The Path to Global Economic Prosperity:[75]
Rather than bankrupting the nation, this large growth in the national debt [during World War II] promoted a prosperous economy. By 1946, the average American household was living much better economically than in the prewar days. Moreover, the children of that Depression–World War II generation were not burdened by having to pay off what then was considered a huge national debt. Instead, for the next quarter century, the economy continued on a path of unprecedented economic growth and prosperity….[76]
  • Douglas J. Amy, professor of politics at Mount Holyoke College:[77]
Conservatives are also wrong when they argue that deficit spending and a large national debt will inevitably undermine economic growth. To see why, we need to simply look back at times when we have run up large deficits and increased the national debt. The best example is World War II when the national debt soared to 120% of GDP—nearly twice the size of today’s debt. This spending not only got us out of the Great Depression but set the stage for a prolonged period of sustained economic growth in the 50s and 60s.[78]
  • Paul Krugman, Nobel Prize-winning economist and Princeton University professor:[79]
Right now, federal debt is about 50% of GDP. So even if we do run these deficits, federal debt as a share of GDP will be substantially less than it was at the end of World War II.
Again, the debt outlook is bad. But we’re not looking at something inconceivable, impossible to deal with; we’re looking at debt levels that a number of advanced countries, the U.S. included, have had in the past, and dealt with.[80]

* In the 40 years that followed the end of World War II (1946–1985):

  • federal spending as a percent of GDP averaged 42% lower than the last year of the war.[81]
  • publicly held debt as a percent of GDP decreased by 72 percentage points.[82]

* In 2010, around the time when the statements above were written, the Congressional Budget Office projected that under current policy and a sustained economic recovery over the next 40 years:

  • federal spending as a percent of GDP will average over 78% higher than in the four decades that followed World War II.[83]
  • publicly held debt as a percent of GDP will rise by 277 percentage points.[84]

Alternative Policies

* As alternatives to the CBO’s current policy projections detailed above, the CBO also ran projections for scenarios such as these:

1) Current law:[85]

  • Federal revenues will incrementally increase from 17.6% of GDP in 2014 to 18.0% in 2020, 19.9% in 2044, and 23.5% in 2084.[86] [87] At this point, federal revenues (i.e., taxes) will be 35% higher than the average of the previous 40 years.[88]
  • Federal spending on all government functions will incrementally increase from 20.4% of GDP in 2014 to 21.5% in 2020, and 26.0% in 2040.[89] At this point, spending will be 27% higher than the average of the previous 40 years.[90]
  • Payments for Medicare services will undergo reductions that will likely cause “severe problems with beneficiary access to care.”[91] [92]

2) Republican Congressman Paul Ryan’s 2014 budget resolution, called the “The Path to Prosperity”:[93]

  • Starting in 2024, Medicare beneficiaries will have a choice to enroll in private plans paid for by Medicare or remain in the traditional Medicare program.[94] Also starting in 2024, the eligibility age for Medicare benefits will incrementally rise to correspond with Social Security’s retirement age.[95] Compared to the projections under the current policy scenario, Medicare spending will be 0.5% lower in 2016, 2% lower in 2020, and 4% lower in 2024.[96]
  • Federal Medicaid spending will be converted to an “allotment that each state could tailor to meet its needs, indexed for inflation and population growth.”[97] The expansion of Medicaid manadated by the Affordable Care Act (a.k.a. Obamacare) will be repealed.[98] Compared to the projections under the current policy scenario, Medicaid spending will be 9% lower in 2016, 19% lower in 2020, and 24% lower in 2024.[99]
  • All federal spending related to Obamacare’s exchange subsidies will be repealed.[100]
  • Spending on all government functions except for interest payments on the national debt will incrementally decline from 18.9% of GDP in 2015 to 16% in 2025 before increasing to 16.4% in 2035.[101] (The average of the previous 40 years is 18.3%).[102]
  • Revenues will increase from 18.2% of GDP in 2015 to 18.4% in 2025, 19% in 2032 and stay constant thereafter.[103] (The average of the previous 40 years is 17.4%.[104])

* Combining historical data on the national debt with CBO’s projections for current policy, current law, and the Ryan plan yields the following results:

Debt Under Different Policies

[105] [106]


Public Opinion

* A poll conducted by NBC News and the Wall Street Journal in February 2011 found that:

  • 80% of Americans are concerned “a great deal” or “quite a bit” about federal budget deficits and the national debt.
  • if the deficit cannot be eliminated by cutting wasteful spending, 35% of Americans prefer to cut important programs while 33% prefer to raise taxes.
  • 22% think cuts in Social Security spending will be needed to “significantly reduce the federal budget deficit,” 49% do not, and 29% have no opinion or are not sure.
  • 18% think cuts in Medicare spending will be needed to “significantly reduce the federal budget deficit,” 54% do not, and 28% have no opinion or are not sure.[107]

* Other than interest on the national debt, most of the long-term growth in federal spending (as a percent of GDP) under the CBO’s current policy and current law scenarios stems from Social Security, Medicare, Medicaid, the Children’s Health Insurance Program, and Affordable Care Act (a.k.a. Obamacare) subsidies.[108]

* A poll conducted in November 2010 by the Associated Press and CNBC found that:

  • 85% of Americans are worried that the national debt “will harm future generations.”
  • 56% think “the shortfalls will spark a major economic crisis in the coming decade.”
  • when asked to choose between two options to balance the budget, 59% prefer to cut unspecified government services, while 30% prefer to raise unspecified taxes.[109]

* A poll conducted in July 2005 by the Associated Press and Ipsos found that:

  • 70% of Americans were worried about the size of the federal deficit.
  • 35% were willing to cut government spending.
  • 18% were willing to raise taxes.
  • 1% were willing to cut government spending and raise taxes.[110]

Congresses

* During the first session of the 113th Congress (January–December 2013), U.S. Representatives and Senators introduced 168 bills that would have reduced spending and 828 bills that would have raised spending.[111]

* The table below quantifies the costs and savings of these bills by political party. This data is provided by the National Taxpayers Union Foundation:

Costs/Savings of Bills Sponsored or Cosponsored

in 2013 by Typical Congressman (in Billions)

Increases Decreases Net Agenda
House Democrats $407 $10 $397
Senate Democrats $22 $3 $18
House Republicans $9 $91 -$83
Senate Republicans $6 $165 -$159

[112] [113]

* Click here to look up any member of Congress and see the annual costs or savings from the legislation he or she has sponsored or cosponsored.

* The table below quantifies the net agendas of the political parties in previous Congresses:

Costs/Savings of Bills Sponsored or Cosponsored in the First

Sessions of Congress by Typical Congressman (in Billions)

2011 2009 2007 2005 2003 2001 1999
House Democrats $497 $500 $547 $547 $402 $262 $34
Senate Democrats $24 $134 $59 $52 $174 $88 $15
House Republicans -$130 -$45 $7 $12 $31 $20 -$5
Senate Republicans -$239 $51 $7 $11 $26 $19 -$324
NOTE: Data not adjusted for inflation.

[114]


Presidents

* In February 2001, Republican President George W. Bush stated:

Many of you have talked about the need to pay down our national debt. I listened, and I agree. We owe it to our children and grandchildren to act now, and I hope you will join me to pay down $2 trillion in debt during the next 10 years. At the end of those 10 years, we will have paid down all the debt that is available to retire. That is more debt, repaid more quickly than has ever been repaid by any nation at any time in history.[115]

* From the time that Congress enacted Bush’s first major economic proposal (June 7, 2001[116]) until the time that he left office (January 20, 2009), the national debt rose from 53% of GDP to 74%, or an average of 2.7 percentage points per year.[117]

* During eight years in office, President Bush vetoed 12 bills, four of which were overridden by Congress and thus enacted without his approval.[118] These bills were projected by the Congressional Budget Office to increase the deficit by $26 billion during 2008–2022.[119]


* In February 2009, Democratic President Barack Obama stated:

I refuse to leave our children with a debt that they cannot repay—and that means taking responsibility right now, in this administration, for getting our spending under control.[120]

* From the time that Congress enacted Obama’s first major economic proposal (February 17, 2009[121]) until September 30, 2016, the national debt rose from 74% of GDP to 105%, or an average of 4.0 percentage points per year.[122]

* As of November 4, 2016, President Obama has vetoed twelve bills, one of which has been overridden by Congress and thus enacted without his approval.[123] This bill is projected by the Congressional Budget Office to “have no significant effect on the federal budget.”[124]

Government Accounting

Trust Funds and the Two Main Categories of Debt

* Some federal programs (such as Social Security) have “trust funds” that are legally separated from the rest of the federal government.[125]

* When these programs spend less than the federal government allocates to them, their surpluses are loaned to the federal government. This creates a legal obligation for the federal government to pay money and interest to these programs, thus adding to the national debt.[126] [127] [128] [129] [130]

* The federal government divides the national debt into two main categories:[131] [132]

  1. Money that it owes to federal entities such as the Social Security program.
  2. Money that it owes to non-federal entities such as individuals, corporations, local governments, and foreign governments.[133] Also, money owed to the Federal Reserve is classified under this category, even though the Federal Reserve is a federal entity.[134] [135]

NOTE: Just Facts has identified numerous instances in which politicians and journalists have used terms that technically refer to the overall national debt, when in fact, they are only referring to a portion of it. In order to clear up some of the confusion this has created, below are common terms for the national debt categorized by their proper meanings:

  • Overall national debt: gross debt, federal debt, public debt[136]
  • Portion of the national debt owed to federal entities: debt held by government accounts, government-held debt, intragovernmental holdings[137] [138] [139]
  • Portion of the national debt owed to non-federal entities: debt held by the public, publicly held debt[140][141]

* On September 30, 2016, the national debt consisted of:

  • $5.4 trillion owed to federal entities
  • $14.2 trillion owed to non-federal entities
  • $19.6 trillion owed in total[142]

* The federal law that governs the repayment of the national debt draws no distinction between the debt owed to federal and non-federal entities. Both must be repaid with interest.[143]

* The White House Office,[144] [145] Congressional Budget Office,[146] and other federal agencies[147] sometimes exclude the debt owed to federal entities in their reckonings of the national debt because this portion of the debt “represents internal transactions of the government and thus has no effect on credit markets.”

* Federal programs to which this money is owed, such as Social Security and Medicare, include this money and the interest it generates in their assets and financial projections.[148] [149] [150]

* In the 2000 presidential race, the Gore-Liebermann campaign released a 192-page economic plan that contains over 150 uses of the word “debt.” In none of these instances does the plan mention or account for any of the debt owed to federal entities.[151] The same plan includes the debt owed to federal entities in the assets of the Social Security and Medicare programs.[152]


“Deficits” and “Surpluses”

* During the federal government’s 2010 fiscal year (October 1, 2009 to September 30, 2010[153]), the national debt rose from $12.0 trillion to $13.6 trillion, thus increasing by $1.6 trillion.[154]

* The White House,[155] USA Today,[156] Reuters,[157] and other government and media entities reported that the 2010 federal “deficit” was $1.3 trillion.

* The difference between the national debt increase of $1.6 trillion and the reported deficit of $1.3 trillion is attributable to the following accounting practices:

  • When calculating the reported deficit, the federal government merges the finances of all federal programs into what is called the “unified budget.” Hence, the deficit does not account for the intergovernmental debt that arises when programs such as Social Security loan their surpluses to the federal government.[158]
  • When the federal government lays out money for programs such as TARP and student loans, the outgo is not fully counted in the deficit. The deficit reflects only what the government expects to lose or gain on these loans.[159] [160]

* PolitiFact, a Pulitzer Prize-winning project of the Tampa Bay Times to “help you find the truth in politics,”[161] has stated that there were “several years of budget surpluses” during Bill Clinton’s presidency. This same article cites the rise in “national debt” during the tenure of George W. Bush.[162]

* Using the same criterion PolitiFact applied to Bush’s presidency (change in gross national debt), the national debt rose every year of Clinton’s presidency:

Year National Debt on Inauguration Date†

(billions)

1993 $4,188
1994 $4,501
1995 $4,797
1996 $4,988
1997 $5,310
1998 $5,496
1999 $5,624
2000 $5,706
2001 $5,728
† NOTE: PolitiFact used the inauguration date for its debt baseline.

The national debt also rose every fiscal year of Clinton’s presidency.

[163] [164]

Ownership

* As of September 30, 2016, the national debt consists of:

Amount Owed To: Portion of Total
$14.2 trillion owed to non-federal entities (i.e., publicly held debt) 72%
$5.4 trillion owed to federal entities (i.e., intragovernmental debt) 28%

[165]


Debt Owed to Non-Federal Entities

* Ownership of publicly held debt as of September 30, 2016:

Debt Owed to Non-Federal Entities

* Data from the chart above:

Entities Amount (billions) Portion of Total
Foreign & International $6,148 45%
Federal Reserve[166] $2,462 18%
Other Investors $1,343 10%
Mutual Funds $1,315 10%
State & Local Governments $687 5%
Banks & Savings Institutions $547 4%
Private Pension Funds $540 4%
Insurance Companies $297 2%
U.S. Savings Bonds $172 1%
State and Local Government Pension Funds $164 1%

[167]


Debt Owed to Foreign Entities

* Per the White House Office of Management and Budget (2016):

During most of American history, the Federal debt was held almost entirely by individuals and institutions within the United States. In the late 1960s, foreign holdings were just over $10 billion, less than 5 percent of the total Federal debt held by the public. Foreign holdings began to grow significantly starting in the 1970s and now represent almost half of outstanding [publicly held] debt.[168]

* Ownership of U.S. government debt by foreign creditors as of August 31, 2016:

Debt Owed to Foreign Entities

* Data from the chart above:

Country Amount (billions) Portion of Total
China, Mainland $1,185 19%
Japan $1,144 18%
Ireland $266 4%
Cayman Islands $264 4%
Brazil $256 4%
Switzerland $238 4%
Luxembourg $220 4%
United Kingdom $205 3%
Hong Kong $192 3%
Taiwan $190 3%
Others $2,037 33%
Total $6,196 100%

[169]

* Foreign purchases of U.S. government debt increase the demand for this debt, thus putting downward pressure on U.S. interest rates. Conversely, foreign sales of U.S. government debt place upward pressure on U.S. interest rates.[170] [171]

* Per a 2008 Congressional Research Service report, a “potentially serious short-term problem would emerge if China decided to suddenly” sell its holding of U.S. government debt. Possible effects could include:

  • “a more general financial reaction (or panic), in which all foreigners responded by reducing their holdings of U.S. assets”;
  • “a sudden and large depreciation in the value of the dollar”;
  • “a sudden and large increase in U.S. interest rates”;
  • a stock market fall; and/or
  • “a recession.”[172]

* The same report states:

The likelihood that China would suddenly reduce its holdings of U.S. securities is questionable because it is unlikely that doing so would be in China’s economic interests. First, a large sell-off of China’s U.S. holdings could diminish the value of these securities in international markets…. Second, such a move would diminish U.S. demand for Chinese imports…. A sharp reduction of U.S. imports from China could have a significant impact on China’s economy….[173]

* During a visit to China in February 2009, Secretary of State Hillary Clinton said:

By continuing to support American Treasury instruments [i.e., buy U.S. government debt] the Chinese are recognizing our interconnection. … We have to incur more debt. It would not be in China’s interest if we were unable to get our economy moving again. … The U.S. needs the investment in Treasury bonds to shore up its economy to continue to buy Chinese products.[174]

* In August 2007 during a currency dispute between the U.S. and China, two leading officials of Chinese Communist Party bodies suggested that China use the threat of selling U.S. debt as a “bargaining chip.”[175]

* In February 2009 during a dispute over U.S. arms sales to Taiwan, a Chinese general made the following statements in the state-run magazine Outlook Weekly:

Our retaliation should not be restricted to merely military matters, and we should adopt a strategic package of counterpunches covering politics, military affairs, diplomacy and economics to treat both the symptoms and root cause of this disease. … [W]e could sanction them using economic means, such as dumping some U.S. government bonds.[176]

* One month later while appearing before China’s parliament, the head of China’s State Administration of Foreign Exchange said:

the U.S. Treasury market is important to us. … This is purely market-driven investment behavior. I would hope not to see this matter politicized.[177]

Debt Owed to Federal Entities

* Ownership of intergovernmental debt as of September 30, 2016:

Debt Owed to Federal Entities

* Data from the chart above:

Funds Amount (billions) Portion of Total
Social Security $2,843 53%
Civil Service Retirement and Disability $874 16%
Military Retirement $591 11%
Medicare $256 5%
Department of Defense Retiree Healthcare $213 4%
Postal Service Retiree Health Benefits $51 1%
Other $572 11%

[178]

Media

Budget Cuts

* In April 2011, journalists reported on a $38 billion federal budget cut agreement with the following headlines and phraseology:

  • “New Cuts Detailed in Agreement for $38 Billion in Reductions”; “deep budget cuts in programs for the poor, law enforcement, the environment and civic projects” – Los Angeles Times[179]
  • “Congress Sends Budget Cut Bill to Obama”; “cutting a record $38 billion from domestic spending” – Associated Press[180]
  • “Budget Deal to Cut $38 Billion Averts Shutdown”; “Republicans were able to force significant spending concessions from Democrats….” – New York Times[181]

* None of these articles reported that this figure of $38 billion in cuts was primarily relative to a portion of the budget called “discretionary non-emergency appropriations.”[182] Relative to the entire federal budget, this cut left a projected spending increase of $135 billion from 2010 to 2011. This equates to an inflation-adjusted increase of $49 billion or 0.1 percentage points of GDP:[183]

Federal Outlays

[184]

* None of the articles quoted above contains a budget-wide frame of reference for the cuts. A spending reduction of $38 billion equates to 1.0% of the estimated 2011 budget or 2.7% of the projected deficit:

Budget Cut

[185]


Bush Tax Cuts

* In February 2010, Fareed Zakaria of CNN stated:

Now, please understand that the Bush tax cuts are the single largest part of the black hole that is the federal budget deficit.[186]

* In 2010, the Bush tax cuts lowered federal revenues by about $283 billion.[187] [188] This was equivalent to 8% of the federal budget or 22% of the deficit.[189]

* Per the Congressional Budget Office (CBO), “Most parameters of the tax code are not indexed for real income growth, and some are not indexed for inflation.” Thus, if tax cuts are not periodically implemented, average federal tax rates “increase in the long run.”[190]

* In 2000, the year before the first Bush tax cuts were passed,[191] the federal government collected revenues equal to 20.4% of the nation’s gross domestic product (GDP), the highest level in the history of the United States.[192] Over the previous 30 years, federal revenues averaged 18.3% of GDP.[193]

* In 2000, the stock market “dot.com” bubble burst,[194] the NASDAQ lost 39% of its value,[195] and profits for nonfinancial corporations fell by 18%.[196] In the first quarter of 2001, the nation’s GDP contracted and a recession began.[197] [198]

* In June 2001 and May 2003, Congress passed and President Bush signed laws that implemented various tax cuts.[199] [200]

* After the Bush tax cuts were fully implemented, federal revenues were 17.8% of GDP in 2005, 18.5% in 2006, and 18.6% in 2007.[201] Average federal revenues for the 30 years preceding the Bush tax cuts were 18.4%.[202]

* The Great Recession began in December 2007,[203] and federal revenues declined to 17.7% of GDP in 2008.[204]

* In February 2009, Congress passed and President Obama signed a law that implemented various tax cuts.[205]

* Federal revenues declined to 15.7% of GDP in 2009 and 16.4% in 2010.[206]

* Federal spending rose from 21.0% of GDP in 2007 to 26.5% in 2010.[207] Average federal spending for the 30 years preceding the Great Recession was 21.8%.[208]


The “Do Nothing” Plan

* In April 2011, Ezra Klein of the Washington Post posted a graph of spending and revenue projections based upon CBO’s “current law” scenario and wrote that it:

shows what happens if we do … nothing. The answer, as you can see, is that the budget comes roughly into balance.[209]

* Klein’s graph and commentary omitted the interest and outcome of the national debt under this plan.[210] In the “do nothing” scenario, outlays were projected to exceed revenues every year through 2084, and the publicly held debt was projected to increase from 62% of GDP in 2010, to 74% in 2030, 90% in 2050, and 113% in 2084.[211]

* In the same commentary, Klein wrote that the “current law” scenario is “a pretty good plan” that contains:

a balanced mix of revenues, through returning tax rates to Clinton-era levels and implementing the taxes in the Affordable Care Act, and program cuts … in Medicare….[212]

* Under this scenario:

  • Certain elements of the tax code are not indexed for inflation or wage growth. Consequently, taxpayers are shifted over time into higher tax brackets.
  • According to the Congressional Budget Office, by 2020 revenues “reach higher levels relative to the size of the economy than ever recorded in the nation’s history.”
  • Revenues as a portion of GDP continue climbing through 2084, rising 69% higher than the average of the past 40 years and 47% higher than ever recorded in the history of the United States.[213] [214]
  • As a portion of GDP, federal spending without interest on the national debt rises by 2084 to 68% higher than the average of the past 40 years.[215]

Context

* Without mentioning the role of Congress in taxes, spending, or the national debt,[216] [217] PolitiFact (in the same article cited above) wrote that the national debt increased by $5.73 trillion “under” George W. Bush whereas there were budget surpluses “at the end of the Clinton administration.”[218]

* Below are the fluctuations in national debt organized by the tenures of recent presidents and congressional majorities:

Political Power

Dates

Average Annual Change in National Debt

(Percentage Points of GDP)

Bill Clinton with Democratic House and Senate 1/20/93 – 1/4/95 0.9
Bill Clinton with Republican House and Senate 1/4/95 – 1/19/01 -1.6
George W. Bush with Republican House and Senate 1/19/01 – 6/6/01, 11/12/02 – 1/4/07 0.8
George W. Bush with Republican House and Democratic Senate 6/6/01 – 11/12/02 2.3
George W. Bush with Democratic House and Senate 1/4/07 – 1/20/09 6.5
Barack Obama with Democratic House and Senate 1/20/09 – 1/4/11 9.3
Barack Obama with Republican House and Democratic Senate 1/5/11 – 1/6/15 1.9

[219]

* Other factors impacting the national debt include but are not limited to: legislation passed by previous congresses and presidents,[220] economic cycles, terrorist attacks, natural disasters, demographics, and the actions of U.S. citizens and foreign governments.[221]

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Three Years Behind The Curve Too Late Federal Open Market Committee (FOMC) Increases Target Federal Funds Rate to .75-1.0% — Financial Repression of Savers Slowly Continues — Videos

Posted on March 15, 2017. Filed under: American History, Articles, Banking, Blogroll, Books, Business, College, Communications, Congress, conservatives, Constitution, Corruption, Crisis, Documentary, Economics, Education, Employment, Faith, Family, Federal Government, Federal Government Budget, Fiscal Policy, Food, Foreign Policy, Freedom, government, government spending, history, History of Economic Thought, Language, liberty, Life, Links, Literacy, Macroeconomics, media, Monetary Policy, Money, Movies, Non-Fiction, People, Philosophy, Photos, Police, Politics, Radio, Rants, Raves, Raymond Thomas Pronk, Sociology, Speech, Strategy, Television, Trade Policiy, Tutorials, Video, Water, Wealth, Welfare, Wisdom, Work, Writing | Tags: , , , , , , , , , , , , , , , , , , , , , , , , |

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Yellen Calms Fears Fed’s Policy Trigger Finger Is Getting Itchy

March 15, 2017, 1:00 PM CDT March 15, 2017, 5:02 PM CDT
  • Policy makers still project three total rate hikes for 2017
  • FOMC sticks with ‘gradual’ plan for removing accommodation

Fed Raises Benchmark Lending Rate a Quarter Point

Federal Reserve Chair Janet Yellen sought to reassure investors that the central bank’s latest interest-rate increase wasn’t a paradigm shift to a trigger-happy policy driven by fears of faster inflation.

Speaking to reporters after the Fed’s quarter percentage-point move on Wednesday, Yellen said the central bank was willing to tolerate inflation temporarily overshootingits 2 percent goal and that it intended to keep its policy accommodative for “some time.”

“The simple message is the economy’s doing well. We have confidence in the robustness of the economy and its resilience to shocks,” she said.

As a result, the Fed is sticking with its policy of gradually raising interest rates, Yellen said. In their first forecasts in three months, Fed policy makers penciled in two more quarter-point rate increases this year and three in 2018, unchanged from their projections in December.

Today’s decision “does not represent a reassessment of the economic outlook or of the appropriate course for monetary policy,” the Fed chief said.

Speculation of a more aggressive Fed had mounted in recent days after a host of central bank officials, including Yellen herself, went out of their way to telegraph to financial markets that a rate hike was imminent. The expectations were further fueled by news of rising inflation.

Stocks Advance

Stocks rose and bond yields fell as investors viewed the statement from the Federal Open Market Committee and Yellen’s remarks afterward as a sign that the Fed isn’t in a hurry to remove monetary stimulus. The FOMC raised the target range for the federal funds rate to 0.75 percent to 1 percent, as expected, but Yellen’s lack of urgency to snuff out inflation was a surprise.

R.J. Gallo, a fixed-income investment manager at Federated Investors in Pittsburgh, said the chorus of Fed speakers before this meeting led investors to expect a move up in the number of projected rate hikes this year, and even upgrades by Fed officials in the levels of inflation and growth they anticipated.

None of that materialized.

“You didn’t get any of those things,” Gallo said, which explains why Treasury yields quickly dropped after the Fed released the FOMC statement and a new set of economic projections. “The expectation that Fed was getting more hawkish had to come out of the market.”

The U.S. economy has mostly met the central bank’s goals of full employment and stable prices, and may get further support if President Donald Trump delivers promised fiscal stimulus. Investor and business confidence has soared since Trump won the presidency in November, buoyed by his vows to cut taxes, lift infrastructure spending and ease regulations.

Still, the data don’t show an economy that’s heating up rapidly — a point Yellen herself made after the third rate hike since the 2007-2009 recession ended. In fact, the economy may have “more room to run,” she said.

Stronger business and consumer confidence hasn’t yet translated into increased investment and spending, said Yellen.

“It’s uncertain just how much sentiment actually impacts spending decisions, and I wouldn’t say at this point that I have seen hard evidence of any change in spending decisions,” said the Fed Chair. “Most of the business people that we’ve talked to also have a wait-and-see attitude.”

Retail sales in February grew at the slowest pace since August, a government report showed earlier Wednesday. The Atlanta Fed’s model for GDP predicts an expansion of 0.9 percent in the first quarter, less than a third the pace Trump is aiming for.

Fiscal Stimulus

Asked about the potential for a fiscal boost, Yellen made clear the Fed is still waiting for more concrete policy plans to emerge from the Trump administration before adapting monetary policy in reaction.

“There is great uncertainty about the timing, the size and the character of policy changes that may be put in place,” Yellen said. “I don’t think that’s a decision or set of decisions that we need to make until we know more about what policy changes will go into effect.”

Yellen disputed suggestions that the Fed was on a collision course with the Trump administration over its plans to foster faster economic growth through tax cuts and deregulation. “We would welcome stronger economic growth in the context of price stability,” she said.

She said she had met Trump briefly and had gotten together a couple of times with Treasury Secretary Steven Mnuchin to discuss the economy and financial regulation.

Further underscoring their lack of urgency, Fed officials repeated a commitment to maintain their balance-sheet reinvestment policy until rate increases were well under way. Yellen said officials had discussed the process of reducing the balance sheet gradually, but had made no decisions and would continue to debate the topic.

Policy makers forecast inflation will reach 1.9 percent in the fourth quarter this year, and 2 percent in both 2018 and 2019, according to quarterly median estimates released with the FOMC statement. The Fed’s preferred measure of inflation rose 1.9 percent in the 12 months through January, just shy of its target.

Yellen pointed out, though, that core inflation continues to run somewhat further below 2 percent. That rate, which strips out food and energy costs, stood at 1.7 percent in January. The Fed’s new forecast for the core rate at the end of this year edged up to 1.9 percent, from 1.8 percent in December.

“The committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal,” the Fed said. Discussing the word symmetric in the statement, Yellen said during her press conference that the Fed was not shooting to push inflation over 2 percent but recognized that it could temporarily go above it. Two percent is a target, she reiterated, not a ceiling.

https://www.bloomberg.com/news/articles/2017-03-15/fed-raises-benchmark-rate-as-inflation-approaches-2-target

Changes in the federal funds rate will always affect the U.S. dollar. When the Federal Reserve increases the federal funds rate, it normally reduces inflationary pressure and works to appreciate the dollar.

Since June 2006, however, the Fed has maintained a federal funds rate of close to 0%. In the wake of the 2008 financial crisis, the federal funds rate fluctuated between 0-0.25%, and is now 0.75%.

The Fed used this monetary policy to help achieve maximum employment and stable prices. Now that the 2008 financial crisis has largely subsided, the Fed will look to increase interest rates to continue to achieve employment and to stabilize prices.

Inflation of the U.S. Dollar

The best way to achieve full employment and stable prices is to set the inflation rate of the dollar at 2%. In 2011, the Fed officially adopted a 2% annual increase in the price index for personal consumption expenditures as its target. When the economy is weak, inflation naturally falls; when the economy is strong, rising wages increase inflation. Keeping inflation at a growth rate of 2% helps the economy grow at a healthy rate.

Adjustments to the federal funds rate can also affect inflation in the United States. The Fed controls the economy by increasing interest rates when the economy is growing too fast. This encourages people to save more and spend less, reducing inflationary pressure. Conversely, when the economy is in a recession or growing too slowly, the Fed reduces interest rates to stimulate spending, which increases inflation.

During the 2008 financial crisis, the low federal funds rate should have increased inflation. Over this period, the federal funds rate was set near 0%, which encouraged spending and would normally increase inflation.

However, inflation is still well below the 2% target, which is contrary to the normal effects of low interest rates. The Fed cites one-off factors, such as falling oil prices and the strengthening dollar, as the reasons why inflation has remained low in a low interest environment.

The Fed believes that these factors will eventually fade and that inflation will increase above the target 2%. To prevent this eventual increase in inflation, hiking the federal funds rate reduces inflationary pressure and cause inflation of the dollar to remain around 2%.

Appreciation of the U.S. Dollar

Increases in the federal funds rate also result in a strengthening of the U.S. dollar. Other ways that the dollar can appreciate include increases in average wages and increases in overall consumption. However, although jobs are being created, wage rates are stagnant.

Without an increase in wage rates to go along with a strengthening job market, consumption won’t increase enough to sustain economic growth. Additionally, consumption remains subdued due to the fact that the labor force participation rate was close to its 35-year low in 2015. The Fed has kept interest rates low because a lower federal funds rate supports business expansions, which leads to more jobs and higher consumption. This has all worked to keep appreciation of the U.S. dollar low.

However, the U.S. is ahead of the other developed markets in terms of its economic recovery. Although the Fed raises rates cautiously, the U.S. could see higher interest rates before the other developed economies.

Overall, under normal economic conditions, increases in the federal funds rate reduce inflation and increase the appreciation of the U.S. dollar.

http://www.investopedia.com/articles/investing/101215/how-fed-fund-rate-hikes-affect-us-dollar.asp

Financial repression

From Wikipedia, the free encyclopedia
Not to be confused with economic repression, a type of political repression.

Financial repression refers to “policies that result in savers earning returns below the rate of inflation” in order to allow banks to “provide cheap loans to companies and governments, reducing the burden of repayments”.[1] It can be particularly effective at liquidating government debt denominated in domestic currency.[2] It can also lead to a large expansions in debt “to levels evoking comparisons with the excesses that generated Japan’s lost decade and the Asian financial crisis” in 1997.[1]

The term was introduced in 1973 by Stanford economists Edward S. Shaw and Ronald I. McKinnon[3][4] in order to “disparage growth-inhibiting policies in emerging markets“.

Mechanism

Financial repression consists of the following:[5]

  1. Explicit or indirect capping of interest rates, such as on government debt and deposit rates (e.g., Regulation Q).
  2. Government ownership or control of domestic banks and financial institutions with barriers that limit other institutions from entering the market.
  3. High reserve requirements.
  4. Creation or maintenance of a captive domestic market for government debt, achieved by requiring banks to hold government debt via capital requirements, or by prohibiting or disincentivising alternatives.
  5. Government restrictions on the transfer of assets abroad through the imposition of capital controls.

These measures allow governments to issue debt at lower interest rates. A low nominal interest rate can reduce debt servicing costs, while negative real interest rates erodes the real value of government debt.[5] Thus, financial repression is most successful in liquidating debts when accompanied by inflation and can be considered a form of taxation,[6] or alternatively a form of debasement.[7]

The size of the financial repression tax for 24 emerging markets from 1974 to 1987. Their results showed that financial repression exceeded 2% of GDP for seven countries, and greater than 3% for five countries. For five countries (India, Mexico, Pakistan, Sri Lanka, and Zimbabwe) it represented approximately 20% of tax revenue. In the case of Mexico financial repression was 6% of GDP, or 40% of tax revenue.[8]

Financial repression is categorized as “macroprudential regulation“—i.e., government efforts to “ensure the health of an entire financial system.[2]

Examples

After World War II

Financial repression “played an important role in reducing debt-to-GDP ratios after World War II” by keeping real interest rates for government debt below 1% for two-thirds of the time between 1945 and 1980, the United States was able to “inflate away” the large debt (122% of GDP) left over from the Great Depression and World War II.[2] In the UK, government debt declined from 216% of GDP in 1945 to 138% ten years later in 1955.[9]

China

China‘s economic growth has been attributed to financial repression thanks to “low returns on savings and the cheap loans that it makes possible”. This has allowed China to rely on savings-financed investments for economic growth. However, because low returns also dampens consumer spending, household expenditures account for “a smaller share of GDP in China than in any other major economy”.[1] However, as of December 2014, the People’s Bank of China “started to undo decades of financial repression” and the government now allows Chinese savers to collect up to a 3.3% return on one-year deposits. At China’s 1.6% inflation rate, this is a “high real-interest rate compared to other major economies”.[1]

After the 2008 economic recession

In a 2011 NBER working paper, Carmen Reinhart and Maria Belen Sbrancia speculate on a possible return by governments to this form of debt reduction in order to deal with high debt levels following the 2008 economic crisis.[5]

“To get access to capital, Austria has restricted capital flows to foreign subsidiaries in central and eastern Europe. Select pension funds have also been transferred to governments in France, Portugal, Ireland and Hungary, enabling them to re-allocate toward sovereign bonds.”[10]

Criticism

Critics[who?] argue that if this view was true, investors (i.e., capital-seeking parties) would be inclined to demand capital in large quantities and would be buying capital goods from this capital. This high demand for capital goods would certainly lead to inflation and thus the central banks would be forced to raise interest rates again. As a boom pepped by low interest rates fails to appear these days in industrialized countries, this is a sign that the low interest rates seem to be necessary to ensure an equilibrium on the capital market, thus to balance capital-supply—i.e., savers—on one side and capital-demand—i.e., investors and the government—on the other. This view argues that interest rates would be even lower if it were not for the high government debt ratio (i.e., capital demand from the government).

Free-market economists argue that financial repression crowds out private-sector investment, thus undermining growth. On the other hand, “postwar politicians clearly decided this was a price worth paying to cut debt and avoid outright default or draconian spending cuts. And the longer the gridlock over fiscal reform rumbles on, the greater the chance that ‘repression’ comes to be seen as the least of all evils”.[11]

Also, financial repression has been called a “stealth tax” that “rewards debtors and punishes savers—especially retirees” because their investments will no longer generate the expected return, which is income for retirees.[10][12] “One of the main goals of financial repression is to keep nominal interest rates lower than they would be in more competitive markets. Other things equal, this reduces the government’s interest expenses for a given stock of debt and contributes to deficit reduction. However, when financial repression produces negative real interest rates (nominal rates below the inflation rate), it reduces or liquidates existing debts and becomes the equivalent of a tax—a transfer from creditors (savers) to borrowers, including the government.”[2]

See also

Reform:

General:

References

  1. ^ Jump up to:a b c d “China Savers Prioritized Over Banks by PBOC”. Bloomberg. November 25, 2014.
  2. ^ Jump up to:a b c d Carmen M. Reinhart, Jacob F. Kirkegaard, and M. Belen Sbrancia, “Financial Repression Redux”, IMF Finance and Development, June 2011, p. 22-26
  3. Jump up^ Shaw, Edward S. Financial Deepening in Economic Development. New York: Oxford University Press, 1973
  4. Jump up^ McKinnon, Ronald I. Money and Capital in Economic Development. Washington, D.C.: Brookings Institution, 1973
  5. ^ Jump up to:a b c Carmen M. Reinhart and M. Belen Sbrancia, “The Liquidation of Government Debt”, IMF, 2011, p. 19
  6. Jump up^ Reinhart, Carmen M. and Rogoff, Kenneth S., This Time is Different: Eight Centuries of Financial Folly. Princeton and Oxford: Princeton University Press, 2008, p. 143
  7. Jump up^ Bill Gross, “The Caine Mutiny Part 2”, PIMCO
  8. Jump up^ Giovannini, Alberto and de Melo, Martha, “Government Revenue from Financial Repression”, The American Economic Review, Vol. 83, No. 4 Sep. 1993 (pp. 953-963)
  9. Jump up^ “The great repression”. The Economist. 16 June 2011.
  10. ^ Jump up to:a b “Financial Repression 101”. Allianz Global Investors. Retrieved 2 December 2014.
  11. Jump up^ Gillian Tett, “Policymakers learn a new and alarming catchphrase”, Financial Times, May 9, 2011
  12. Jump up^ Amerman, Daniel (September 12, 2011). “The 2nd Edge of Modern Financial Repression: Manipulating Inflation Indexes to Steal from Retirees & Public Wor

https://en.wikipedia.org/wiki/Financial_repression

Federal funds rate

From Wikipedia, the free encyclopedia

10 year treasury compared to the Federal Funds Rate

Federal funds rate and capacity utilization in manufacturing.

In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis. Reserve balances are amounts held at the Federal Reserve to maintain depository institutions’ reserve requirements. Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. The federal funds rate is an important benchmark in financial markets.[1][2]

The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee which normally occurs eight times a year about seven weeks apart. The committee may also hold additional meetings and implement target rate changes outside of its normal schedule.

The Federal Reserve uses open market operations to influence the supply of money in the U.S. economy[3] to make the federal funds effective rate follow the federal funds target rate.

Mechanism

Financial Institutions are obligated by law to maintain certain levels of reserves, either as reserves with the Fed or as vault cash. The level of these reserves is determined by the outstanding assets and liabilities of each depository institution, as well as by the Fed itself, but is typically 10%[4] of the total value of the bank’s demand accounts (depending on bank size). In the range of $9.3 million to $43.9 million, for transaction deposits (checking accounts, NOWs, and other deposits that can be used to make payments) the reserve requirement in 2007-2008 was 3 percent of the end-of-the-day daily average amount held over a two-week period. Transaction deposits over $43.9 million held at the same depository institution carried a 10 percent reserve requirement.

For example, assume a particular U.S. depository institution, in the normal course of business, issues a loan. This dispenses money and decreases the ratio of bank reserves to money loaned. If its reserve ratio drops below the legally required minimum, it must add to its reserves to remain compliant with Federal Reserve regulations. The bank can borrow the requisite funds from another bank that has a surplus in its account with the Fed. The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The nominal rate is a target set by the governors of the Federal Reserve, which they enforce by open market operations and adjusting the interest paid on required and excess reserve balances. That nominal rate is almost always what is meant by the media referring to the Federal Reserve “changing interest rates.” The actual federal funds rate generally lies within a range of that target rate, as the Federal Reserve cannot set an exact value through open market operations.

Another way banks can borrow funds to keep up their required reserves is by taking a loan from the Federal Reserve itself at the discount window. These loans are subject to audit by the Fed, and the discount rate is usually higher than the federal funds rate. Confusion between these two kinds of loans often leads to confusion between the federal funds rate and the discount rate. Another difference is that while the Fed cannot set an exact federal funds rate, it does set the specific discount rate.

The federal funds rate target is decided by the governors at Federal Open Market Committee (FOMC) meetings. The FOMC members will either increase, decrease, or leave the rate unchanged depending on the meeting’s agenda and the economic conditions of the U.S. It is possible to infer the market expectations of the FOMC decisions at future meetings from the Chicago Board of Trade (CBOT) Fed Funds futures contracts, and these probabilities are widely reported in the financial media.

Applications

Interbank borrowing is essentially a way for banks to quickly raise money. For example, a bank may want to finance a major industrial effort but may not have the time to wait for deposits or interest (on loan payments) to come in. In such cases the bank will quickly raise this amount from other banks at an interest rate equal to or higher than the Federal funds rate.

Raising the federal funds rate will dissuade banks from taking out such inter-bank loans, which in turn will make cash that much harder to procure. Conversely, dropping the interest rates will encourage banks to borrow money and therefore invest more freely.[5] This interest rate is used as a regulatory tool to control how freely the U.S. economy operates.

By setting a higher discount rate the Federal Bank discourages banks from requisitioning funds from the Federal Bank, yet positions itself as a lender of last resort.

Comparison with LIBOR

Though the London Interbank Offered Rate (LIBOR) and the federal funds rate are concerned with the same action, i.e. interbank loans, they are distinct from one another, as follows:

  • The target federal funds rate is a target interest rate that is set by the FOMC for implementing U.S. monetary policies.
  • The (effective) federal funds rate is achieved through open market operations at the Domestic Trading Desk at the Federal Reserve Bank of New York which deals primarily in domestic securities (U.S. Treasury and federal agencies’ securities).[6]
  • LIBOR is based on a questionnaire where a selection of banks guess the rates at which they could borrow money from other banks.
  • LIBOR may or may not be used to derive business terms. It is not fixed beforehand and is not meant to have macroeconomic ramifications.[7]

Predictions by the market

Considering the wide impact a change in the federal funds rate can have on the value of the dollar and the amount of lending going to new economic activity, the Federal Reserve is closely watched by the market. The prices of Option contracts on fed funds futures (traded on the Chicago Board of Trade) can be used to infer the market’s expectations of future Fed policy changes. Based on CME Group 30-Day Fed Fund futures prices, which have long been used to express the market’s views on the likelihood of changes in U.S. monetary policy, the CME Group FedWatch tool allows market participants to view the probability of an upcoming Fed Rate hike. One set of such implied probabilities is published by the Cleveland Fed.

Historical rates

As of December 16, 2008, the most recent change the FOMC has made to the funds target rate is a 75 to 100 basis point cut from 1.0% to a range of zero to 0.25%. According to Jack A. Ablin, chief investment officer at Harris Private Bank, one reason for this unprecedented move of having a range, rather than a specific rate, was because a rate of 0% could have had problematic implications for money market funds, whose fees could then outpace yields.[8] This followed the 50 basis point cut on October 29, 2008, and the unusually large 75 basis point cut made during a special January 22, 2008 meeting, as well as a 50 basis point cut on January 30, 2008, a 75 basis point cut on March 18, 2008, and a 50 basis point cut on October 8, 2008.[9]

Federal funds rate history and recessions.png

Explanation of federal funds rate decisions

When the Federal Open Market Committee wishes to reduce interest rates they will increase the supply of money by buying government securities. When additional supply is added and everything else remains constant, price normally falls. The price here is the interest rate (cost of money) and specifically refers to the Federal Funds Rate. Conversely, when the Committee wishes to increase the Fed Funds Rate, they will instruct the Desk Manager to sell government securities, thereby taking the money they earn on the proceeds of those sales out of circulation and reducing the money supply. When supply is taken away and everything else remains constant, price (or in this case interest rates) will normally rise.[10]

The Federal Reserve has responded to a potential slow-down by lowering the target federal funds rate during recessions and other periods of lower growth. In fact, the Committee’s lowering has recently predated recessions,[9] in order to stimulate the economy and cushion the fall. Reducing the Fed Funds Rate makes money cheaper, allowing an influx of credit into the economy through all types of loans.

The charts linked below show the relation between S&P 500 and interest rates.

  • July 13, 1990 — Sept 4, 1992: 8.00%–3.00% (Includes 1990–1991 recession)[11][12]
  • Feb 1, 1995 — Nov 17, 1998: 6.00–4.75 [13][14][15]
  • May 16, 2000 — June 25, 2003: 6.50–1.00 (Includes 2001 recession)[16][17][18]
  • June 29, 2006 — (Oct. 29 2008): 5.25–1.00[19]
  • Dec 16, 2008 — 0.0–0.25[20]
  • Dec 16, 2015 — 0.25-0.50[21]
  • Dec 14, 2016 — 0.50-0.75[22]
  • Mar 15, 2017 — 0.75-1.00[23]

Bill Gross of PIMCO suggested that in the prior 15 years ending in 2007, in each instance where the fed funds rate was higher than the nominal GDP growth rate, assets such as stocks and/or housing fell.[24]

See also

References

  1. Jump up^ “Fedpoints: Federal Funds”. Federal Reserve Bank of New York. August 2007. Retrieved 2 October 2011.
  2. Jump up^ “The Implementation of Monetary Policy”. The Federal Reserve System: Purposes & Functions (PDF). Washington, D.C.: Federal Reserve Board. 24 August 2011. p. 4. Retrieved 2 October 2011.
  3. Jump up^ “Monetary Policy, Open Market Operations”. Federal Reserve Bank. 2008-01-30. Retrieved 2008-01-30.
  4. Jump up^ “Reserve Requirements”. Board of Governors of The Federal Reserve System. December 16, 2015.
  5. Jump up^ “Fed funds rate”. Bankrate, Inc. March 2016.
  6. Jump up^ Cheryl L. Edwards (November 1997). Gerard Sinzdak. “Open Market Operations in the 1990s” (PDF). Federal Reserve Bulletin (PDF).
  7. Jump up^ “BBA LIBOR – Frequently asked questions”. British Bankers’ Association. March 21, 2006. Archived from the original on 2007-02-16.
  8. Jump up^ “4:56 p.m. US-Closing Stocks”. Associated Press. December 16, 2008.[