Government Corruption News Articles

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The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said. The credit card is the second key source of consumer liquidity, the first being jobs, the Oppenheimer & Co analyst noted. "In other words, we expect available consumer liquidity in the form of credit-card lines to decline by 45 percent." Closing millions of accounts, cutting credit lines and raising interest rates are just some of the moves credit card issuers are using to try to inoculate themselves from a tsunami of expected consumer defaults. A consolidated U.S. lending market that is pulling back on credit is also posing a risk to the overall consumer liquidity, Whitney said. Mortgages and credit cards are now dominated by five players who are all pulling back liquidity, making reductions in consumer liquidity seem unavoidable, she said. "We are now beginning to see evidence of broad-based declines in overall consumer liquidity. Already, we have witnessed the entire mortgage market hit a wall, and we believe it will, for the first time ever, show actual shrinkage over the next few months," she wrote. "In a country that offers hundreds of cereal and soda pop choices, the banking industry has become one that offers very few choices", Whitney wrote in a note dated November 30. "Pulling credit when job losses are increasing by over 50 percent year-over-year in most key states is a dangerous and unprecedented combination, in our view," the analyst said.

Note: This article, in pointing out that the banking industry offers few choices for consumers, fails to mention that the industry is rapidly becoming extremely concentrated, with major bank failures and takeovers accelerating due to the financial crisis on Wall Street. And the bailout from the Fed and Treasury has encouraged this concentration through huge tax breaks and risk protections. For many revealing reports on the Wall Street bailout from reliable sources, click here.

With its decision last week to pump an additional $1 trillion into the financial crisis, the government eliminated any doubt that [it has] no hesitation in pledging to spend previously almost unimaginable sums of money and running up federal budget deficits on a scale not seen since World War II. Indeed, analysts warn that the nation's next financial crisis could come from the staggering cost of battling the current one. Just last week, new initiatives added $600 billion to lower mortgage rates, $200 billion to stimulate consumer loans and nearly $300 billion to steady Citigroup, the banking conglomerate. That pushed the potential long-term cost of the government's varied economic rescue initiatives, including direct loans and loan guarantees, to an estimated total of $8.5 trillion -- half of the entire economic output of the U.S. this year. The spending already has had a dramatic effect on the federal budget deficit, which soared to a record $455 billion last year and began the 2009 fiscal year with an amazing $237-billion deficit for October alone. Analysts say next year's budget deficit could easily bust the $1-trillion barrier. "I didn't think we'd see that for a long time," said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "There's a huge risk of another economic crisis, a debt crisis, once we get on the other side of this one." Once the financial crisis eases, higher interest rates and soaring inflation will be risks.

Note: For many revealing reports on the Wall Street bailout from reliable sources, click here.

The bailouts keep coming, and they seem to be getting worse for taxpayers. The deal worked out over the weekend to prevent the collapse of Citigroup "is a terrible deal for taxpayers," says Campbell Harvey, a Duke University global finance professor. "Some intervention was necessary. But the terms of the intervention basically shafted the U.S. taxpayer." Under the deal, the U.S. government will invest $20 billion in Citigroup preferred stock (on top of its previous $25 billion capital injection from the Troubled Asset Relief Program) and guarantee up to $306 billion in mortgage and other assets. Citigroup would absorb the first $29 billion in losses on that asset pool. Losses exceeding $29 billion would be shared 90 percent by the government and 10 percent by Citigroup. What do taxpayers get for taking on this risk? Citigroup will pay an 8 percent dividend on the preferred stock or $560 million a year. By comparison, when Warren Buffett's Berkshire Hathaway recently invested $5 billion in Goldman Sachs and $3 billion in General Electric, it got preferred stock that pays a 10 percent dividend. The government also gets warrants to purchase about $2.7 billion worth of Citigroup common stock at $10.61 per share. Citigroup's shares closed at $5.95 per share Monday, up $2.18 from Friday. For the warrants to become profitable, the common shares would have to nearly double.

Note: The answer to the question of what taxpayers get should be essentially nothing. Only Citigroup shareholders will see the benefits mentioned, and very few taxpayers are shareholders. Money is being thrown around like never before. For many revealing reports on the realities of the Wall Street bailout, click here.

Given the speed at which the federal government is throwing money at the financial crisis, the average taxpayer, never mind member of Congress, might not be faulted for losing track. CNBC, however, has been paying very close attention and keeping a running tally of actual spending as well as the commitments involved. Try $4.28 trillion dollars. That's $4,284,500,000,000 and more than what was spent on WW II, if adjusted for inflation, based on our computations from a variety of estimates and sources. Not only is it an astronomical amount of money, it's a complicated cocktail of budgeted dollars, actual spending, guarantees, loans, swaps and other market mechanisms by the Federal Reserve, the Treasury and other offices of government taken over roughly the last year, based on government data and news releases. Strictly speaking, not every cent is a direct result of what's called the financial crisis, but it is arguably related to it. Some 68-percent of the sum falls under the Federal Reserve's umbrella, while another 16 percent is the under the Troubled Asset Relief Program, TARP, as defined under the Emergency Economic Stabilization Act, signed into law in early October. The TARP alone is bigger than virtually any other US government endeavor dating back to the Louisiana Purchase.

Note: That's over $10,000 per man, woman, and child in the U.S. Click on the link above to view a highly informative slideshow, the "Biggest Budget Items in US History," comparing the Wall Street bailout to famous historic government expenditures, and a chart, the "Financial Crisis Balance Sheet," detailing the many components of the bailout. For many key articles revealing the hidden realities of the bailout, click here.

Gordon Brown and other European leaders are secretly preparing an unprecedented campaign to spread GM crops and foods in Britain and throughout the continent, confidential documents obtained by The Independent on Sunday reveal. The documents –- minutes of a series of private meetings of representatives of 27 governments –- disclose plans to "speed up" the introduction of the modified crops and foods and to "deal with" public resistance to them. The secret meetings were convened by Jose Manuel Barroso, the pro-GM President of the Commission, and chaired by his head of cabinet, Joao Vale de Almeida. The prime ministers of each of the EU's 27 member states were asked to nominate a special representative. Neither the membership of the group, nor its objectives, nor the outcomes of its meetings have been made public. But The IoS has obtained confidential documents, including an attendance list and the conclusions of the two meetings held so far – on 17 July and just two weeks ago on 10 October – written by the chairman. The list shows that President Nicolas Sarkozy of France and Chancellor Angela Merkel of Germany sent close aides. Britain was represented by Sonia Phippard, director for food and farming at the Department of Environment, Food and Rural Affairs. The conclusions reveal the discussions were mainly preoccupied with how to speed up the introduction of GM crops and food and how to persuade the public to accept them. The documents also make clear that Mr Barroso is going beyond mere exhortation by trying to get prime ministers to overrule their own agriculture and environment ministers in favour of GM.

Note: For an excellent summary of the many health risks posed by genetically modified foods, click here.

In a step that could accelerate a shakeout of the nation’s banks, the Treasury Department hopes to spur a new round of mergers by steering some of the money in its $250 billion rescue package to banks that are willing to buy weaker rivals, according to government officials. As the Treasury embarks on its unprecedented recapitalization, it is becoming clear that the government wants not only to stabilize the industry, but also to reshape it. Two senior officials said the selection criteria would include banks that need more capital to finance acquisitions. “Treasury doesn’t want to prop up weak banks,” said an official who spoke on condition of anonymity, because of the sensitivity of the matter. “One purpose of this plan is to drive consolidation.” With bankers traumatized by the credit crisis and the loss of investor confidence, officials said, there are plenty of banks open to selling themselves. The hurdle is a lack of well-capitalized buyers. Stable national players like Bank of America, JPMorgan Chase, and Wells Fargo are already digesting acquisitions. A second group of so-called super-regional banks are well positioned to take over their competitors, officials said, but have been reluctant to undertake or unable to complete deals. By offering capital at a favorable rate, the government may encourage them to expand.

Note: So the U.S. government is using billions of taxpayer dollars to support megamergers which create less competition and more monopolistic conditions. Hmmmm. Is that what the taxpayers really want? For lots more highly revealing reports on the Wall Street bailout, click here.

All of the combined profits that major banks earned in recent years have vanished. Since mid-2007, when the credit crisis erupted, the country’s nine largest banks have written down the value of their troubled assets by a combined $323 billion. The problems that began with home mortgages, analysts say, are migrating to auto, credit card and commercial real estate loans. The deepening red ink underscores a crucial question about the government’s plan: Will lenders deploy their new-found capital quickly, as the Treasury hopes, and unlock the flow of credit through the economy? Or will they hoard the money to protect themselves? John A. Thain, the chief executive of Merrill Lynch, said on Thursday that banks were unlikely to act swiftly. “We will have the opportunity to redeploy that,” Mr. Thain said of the new capital. “But at least for the next quarter, it’s just going to be a cushion." For every dollar the banks earned during the industry’s most prosperous years, they have now wiped out $1.06. [Treasury Secretary Henry M.] Paulson unveiled plans to provide $125 billion to nine banks on terms that were more favorable than they would have received in the marketplace. The government, however, has offered no written requirements about how or when the banks must use the money. “There is no express statutory requirement that says you must make this amount of loans,” said John C. Dugan, the comptroller of the currency. The banks could use the money from the government for any number of things. Some analysts say the banks may use it to acquire weaker competitors. Others say they might use it to avoid painful cost-cutting. And still others say the banks may sit on the capital.

Note: With no requirements placed on how the bailout money is to be used, what is to stop the banks from using taxpayers's money to inflate the bonuses to top executives, or to increase political campaign contributions to Congress members in return for future favorable legislation?

A retired medical supply manufacturer who considers bisphenol A to be "perfectly safe" gave $5 million to the research center headed by the chairman of a Food and Drug Administration panel about to rule on the chemical's safety. The July donation from Charles Gelman is nearly 50 times the annual budget of the University of Michigan Risk Science Center, where Martin Philbert is founder and co-director. Philbert did not disclose the donation to the FDA, and agency officials learned of it when reporters asked about it. Gelman said he considers the chemical, which is used to make baby bottles and aluminum can liners, to be safe. He said he had made his views clear to Philbert in several conversations. Philbert denied that. Philbert's committee is expected to release its opinion this month. The decision of Philbert's committee is expected to have huge implications on the regulation and sale of the chemical in items such as baby bottles, reusable food containers and plastic wraps. Since the late 1990s, studies have linked bisphenol A to cancer, heart disease, obesity, reproductive failures and hyperactivity in laboratory animals. Gelman, a retired manufacturer of syringes and medical filtration devices, has fought against government regulation of pollutants for years. He is an anti-regulation activist and an outspoken supporter of organizations such as JunkScience.com, the Cato Institute and the Competitive Enterprise Institute that attack the credibility of government and academic scientists on such topics as global warming and hazardous chemicals.

Note: For key reports on government corruption from reliable sources, click here.

Michael Cantrell, an engineer at the Army Space and Missile Defense Command headquarters in Huntsville, Ala., along with his deputy, Doug Ennis, had lined up millions of dollars from Congress for defense companies. Mr. Cantrell decided it was time to take a cut. Within months, [he] began getting personal checks from contractors and later [picked] up a briefcase stuffed with $75,000. The two men eventually collected more than $1.6 million in kickbacks, through 2007, [causing] them to plead guilty this year to corruption charges. But what has drawn little scrutiny are [Cantrell's] activities leading up to it. Thanks to important allies in Congress, he extracted nearly $350 million for projects the Pentagon did not want, wasting taxpayer money on what would become dead-end ventures. He often bypassed his bosses and broke department rules to make his case on Capitol Hill. He enlisted contractors to pitch projects that would keep the dollars flowing and paid lobbyists to ease them through. He cultivated lawmakers, who were eager to send money back home or to favored contractors and did not ask many questions. And when he ran into trouble, he could count on his powerful friends for protection from Pentagon officials who provided little oversight and were afraid of alienating lawmakers. “I could go over to the Hill and put pressure on people above me and get something done,” Mr. Cantrell explained. “With the Army, as long as the senator is not calling over and complaining, everything is O.K. And the senator will not call over and complain unless the contractor you’re working with does not get his money. So you just have to keep the players happy and it works.”

Note: For key reports on government corruption from reliable sources, click here.

The former No. 3 official at the CIA pleaded guilty Monday to defrauding the government, closing an investigation that linked the nation's preeminent spy service to the corruption scandal involving former Rep. Randy "Duke" Cunningham. In admitting that he abused his rank to steer lucrative contracts to cronies, Kyle Dustin "Dusty" Foggo, the agency's onetime executive director, became one of the highest-ranking officials in CIA history to be convicted of criminal charges. But the deal also involved major concessions from prosecutors, who allowed Foggo to admit guilt to a single fraud charge, wiping out 27 additional counts that included money laundering and conspiracy. Prosecutors indicated that they would recommend he serve no more than 37 months. The revelations of Foggo's crimes surfaced two years ago during one of the most tumultuous periods in recent agency history, and added to the pressure on the Bush administration to remove Porter J. Goss as CIA director in 2006. Goss selected Foggo for the agency's third-ranking position. Foggo had never served as a case officer or an analyst -- the jobs that typically garner the most respect within the CIA. But as a procurement officer at a secret CIA post in Frankfurt, Germany, he was in a position to cultivate contacts with members of Congress and other influential officials who visited during overseas trips to war zones.

Note: Interesting that a guilty plea for one count was exchanged for dismissing numerous other charges of fraud and money laundering. For an excellent analysis of the reasons behind this unusual prosecutorial strategy, click here. Buzzy Krongard, the previous #3 man at the CIA, has been linked to the millions of dollars in suspicious stock option trades made just prior to 9/11 that were never claimed, though this received little media coverage.

It's likely that most people have never heard of Gaucho. And no, it's not a South American cowboy. I'm talking about a pesticide. There is increasing reason to believe that Gaucho and other members of a family of highly toxic chemicals -- neonicotinoids -- may be responsible for the deaths of billions of honeybees worldwide. Some scientists believe that these pesticides, which are applied to seeds, travel systemically through the plant and leave residues that contaminate the pollen, resulting in bee death or paralysis. The French refer to the effect as "mad bee disease" and in 1999 were the first to ban the use of these chemicals, which are currently only marketed by Bayer (the aspirin people) under the trade names Gaucho and Pancho. Germany followed suit this year. So why did the U.S. Environmental Protection Agency in 2002 grant an "emergency" exemption allowing increased use of Gaucho -- typically invoked during a major infestation -- when only a few beetles were found in blueberries? Why did the agency also grant a "conditional" registration for its close relative, Pancho, allowing the chemical on the market with only partial testing? And why is the agency, hiding behind a curtain of "trade secrets," still refusing to disclose whether the additional tests required of companies in such cases were conducted and, if so, with what results? [Pesticides] are regulated ...- under the antiquated Federal Insecticide, Fungicide and Rodenticide Act. This law allows a chemical on the market unless it's proved to pose "an unreasonable risk," far too weak a standard.

Note: For many revealing reports on government corruption from reliable sources, click here.

In her important new book, The Dark Side: The Inside Story of How the War on Terror Turned Into a War on American Ideals, Jane Mayer of The New Yorker devotes a great deal of space to David Addington, ... the lead architect of the Bush administration’s legal strategy for the so-called war on terror. In the view of Mr. Addington and his acolytes, anything and everything that the president authorized in the fight against terror — regardless of what the Constitution or Congress or the Geneva Conventions might say — was all right. That included torture, rendition, warrantless wiretapping, the suspension of habeas corpus, you name it. Ms. Mayer wrote: "The legal doctrine that Addington espoused — that the president, as commander in chief, had the authority to disregard virtually all previously known legal boundaries — rested on a reading of the Constitution that few legal scholars shared." Ms. Mayer mentioned a study conducted by attorneys and law students at the Seton Hall University Law School. "After reviewing 517 of the Guantánamo detainees’ cases in depth," she said, "they concluded that only 8 percent were alleged to have associated with Al Qaeda. Fifty-five percent were not alleged to have engaged in any hostile act against the United States at all, and the remainder were charged with dubious wrongdoing, including having tried to flee U.S. bombs. The overwhelming majority — all but 5 percent — had been captured by non-U.S. players, many of whom were bounty hunters." The Dark Side is essential reading for those who think they can stand the truth.

Note: For lots more on the realities behind the "war on terror", click here.

Eleven years after the last major effort to balance the federal government's books, advocates of fiscal integrity are seeking to make a comeback. Most notable is Pete Peterson, a son of Greek immigrants and Wall Street chieftain who has vowed to invest $1 billion of his personal fortune to alert Americans that their government is going broke. He has lured former U.S. comptroller general David Walker to his fledgling Peter G. Peterson Foundation, which will finance advertising, lobbying and grass-roots efforts designed to pressure the next president and Congress. The situation has gotten much worse since past presidents and Congress negotiated deficit-reduction deals in 1990, 1993 and 1997. The federal deficit is estimated at $357 billion. The national debt, as calculated by the Treasury Department, is more than $9.3 trillion. Future liabilities, from government pensions to elderly entitlements, bring the total to $53 trillion — $175,000 per person, according to Peterson and Walker. Both men say a comprehensive fix will need to include overhauls of the nation's health care and tax systems. At the core of the effort is Peterson, 82, a founder of the Concord Coalition fiscal watchdog group, who has preached the danger of federal budget deficits for decades. He and Walker spoke Tuesday at a House Budget Committee hearing and met privately with congressional backers of balanced budgets. Peterson is retiring this year as senior chairman of the Blackstone Group, which he co-founded. [He is a] former secretary of Commerce in the Nixon administration and chairman of Lehman Brothers.

A BBC investigation estimates that around $23bn (Ł11.75bn) may have been lost, stolen or just not properly accounted for in Iraq. The BBC's Panorama programme has used US and Iraqi government sources to research how much some private contractors have profited from the conflict and rebuilding. A US gagging order is preventing discussion of the allegations. The order applies to 70 court cases against some of the top US companies. While President George W Bush remains in the White House, it is unlikely the gagging orders will be lifted. To date, no major US contractor faces trial for fraud or mismanagement in Iraq. Henry Waxman, who chairs the House committee on oversight and government reform, said: "It may well turn out to be the largest war profiteering in history." In the run-up to the invasion, one of the most senior officials in charge of procurement in the Pentagon objected to a contract potentially worth $7bn that was given to Halliburton, a Texan company which used to be run by Dick Cheney before he became vice-president. Only Halliburton got to bid. The search for the missing billions also led ... to a house in ... west London where Hazem Shalaan lived until he was appointed to the new Iraqi government as minister of defence in 2004. He and his associates siphoned an estimated $1.2bn out of the ministry. They bought old military equipment from Poland but claimed for top-class weapons. Meanwhile they diverted money into their own accounts. Judge Radhi al-Radhi of Iraq's Commission for Public Integrity investigated. He said: "I believe these people are criminals."

Note: For many other reports on war profiteering, click here.

A secret deal being negotiated in Baghdad would perpetuate the American military occupation of Iraq indefinitely, regardless of the outcome of the US presidential election in November. The terms of the impending deal, details of which have been leaked to The Independent, are likely to have an explosive political effect in Iraq. Iraqi officials fear that the accord, under which US troops would occupy permanent bases, conduct military operations, arrest Iraqis and enjoy immunity from Iraqi law, will destabilise Iraq's position in the Middle East and lay the basis for unending conflict in their country. But the accord also threatens to provoke a political crisis in the US. President Bush wants to push it through by the end of next month so he can declare a military victory and claim his 2003 invasion has been vindicated. But by perpetuating the US presence in Iraq, the long-term settlement would undercut pledges by the Democratic presidential nominee, Barack Obama, to withdraw US troops if he is elected president in November. The timing of the agreement would also boost the Republican candidate, John McCain. Under the terms of the new treaty, the Americans would retain the long-term use of more than 50 bases in Iraq. American negotiators are also demanding immunity from Iraqi law for US troops and contractors, and a free hand to carry out arrests and conduct military activities in Iraq without consulting the Baghdad government. The precise nature of the American demands has been kept secret until now.

An investigation by the NASA inspector general found that political appointees in the space agency's public affairs office worked to control and distort public accounts of its researchers' findings about climate change for at least two years. The probe came at the request of 14 senators after The Washington Post and other news outlets reported in 2006 that Bush administration officials had monitored and impeded communications between NASA climate scientists and reporters. James E. Hansen, who directs NASA's Goddard Institute for Space Studies and has campaigned publicly for more stringent limits on greenhouse gases that contribute to global warming, told The Post and The New York Times in September 2006 that he had been censored by NASA press officers, and several other agency climate scientists reported similar experiences. NASA and the National Oceanic and Atmospheric Administration are two of the government's lead agencies on climate change issues. From the fall of 2004 through 2006, the report said, NASA's public affairs office "managed the topic of climate change in a manner that reduced, marginalized, or mischaracterized climate change science made available to the general public." It noted elsewhere that "news releases in the areas of climate change suffered from inaccuracy, factual insufficiency, and scientific dilution." The report found "by a preponderance of the evidence, that the claims of inappropriate political interference made by the climate change scientists and career public affairs officers were ... persuasive."

Note: For lots more on global warming from reliable sources, click here.

The United States is operating "floating prisons" to house those arrested in its war on terror, according to human rights lawyers, who claim there has been an attempt to conceal the numbers and whereabouts of detainees. Details of ships where detainees have been held and sites allegedly being used in countries across the world have been compiled as the debate over detention without trial intensifies on both sides of the Atlantic. Information about the operation of prison ships has emerged through a number of sources, including statements from the US military, the Council of Europe and related parliamentary bodies, and the testimonies of prisoners. The analysis, due to be published this year by the human rights organisation Reprieve, also claims there have been more than 200 new cases of rendition since 2006, when President George Bush declared that the practice had stopped. According to research carried out by Reprieve, the US may have used as many as 17 ships as "floating prisons" since 2001. Detainees are interrogated aboard the vessels and then rendered to other, often undisclosed, locations. Ships that are understood to have held prisoners include the USS Bataan and USS Peleliu. A further 15 ships are suspected of having operated around the British territory of Diego Garcia in the Indian Ocean, which has been used as a military base by the UK and the Americans. Clive Stafford Smith, Reprieve's legal director, said: "They choose ships to try to keep their misconduct as far as possible from the prying eyes of the media and lawyers. We will eventually reunite these ghost prisoners with their legal rights."

Note: For many other investigations of the reality of the "war on terror", click here.

Oakland economist John Williams doesn't seem like the kind of guy to pick fights with the government. He's slow moving and soft spoken, conservative in politics and personal habits, a pale and portly 59-year-old who favors Oxford shirts, Rep ties and sensible shoes. Williams is the sort who pays his taxes on time, waits when the signal says "Don't Walk" and snaps to attention when the national anthem is played. But don't be fooled. The New Jersey native is leading a one-man crusade to expose official economic data as grossly misleading at best and, at worst, a pack of lies. His Shadow Government Statistics Web site (shadowstats.com) has become a magnet for those convinced that official data put a happy-talk gloss on the nation's economy. The growing popularity of the site ... is testimony to the deep suspicion many Americans harbor about government information as the economy falls into a swoon. By Williams' estimation, the government's calculation that unemployment was 5 percent in April and that inflation was 4 percent and economic growth 2 percent over the last year, is fantasy. It might even be disinformation. By his reckoning, the economy shrank 2.5 percent in the year that ended in March, unemployment is really 13 percent and year-over-year inflation is 7.5 percent. Government economic data are "out of touch with common experience. That's why people used to believe the numbers but no longer do," Williams said during an interview.

Note: For lots more on government corruption from major media sources, click here.

Sometime in the next few years, if a memorandum signed by President Bush this month ever goes into effect, one government official talking to another about information on terrorists will have to begin by saying: "What I am about to tell you is controlled unclassified information enhanced with specified dissemination." That would mean, according to the memo, that the information requires safeguarding because "the inadvertent or unauthorized disclosure would create risk of substantial harm." Bush's memorandum ... introduced "Controlled Unclassified Information" as a new government category that will replace "Sensitive but Unclassified." Such information -- though it does not merit the well-known national security classifications "confidential," "secret" or "top secret" -- is nonetheless "pertinent" to U.S. "national interests" or to "important interests of entities outside the federal government," the memo says. Left undefined are which laws or policies generated the requirement for protecting such information, and which interests are pertinent. But Bush's memo does refer to the "global nature of the threats facing the United States" and to the need to ensure that the "entire network of defenders be able to share information more rapidly." Some critics described it as continuing an expansion of secrecy in government and a potential bureaucratic nightmare. The White House "seems to have used the crafting of new rules as an opportunity to expand the range of government secrecy," said Michael Clark, a contributing editor to the blog Daily Kos, who first wrote about the Bush memorandum.

Note: For many revealing reports of increasing government secrecy from reliable sources, click here.

Procurement documents released by the U.S. Air Force give a rare glimpse into Pentagon plans for developing an offensive cyber-war capacity that can infiltrate, steal data from and, if necessary, take down enemy information-technology networks. The Broad Area Announcement, posted ... by the Air Force Research Laboratory's Information Directorate, outlines a two-year, $11 million effort to develop capabilities to "access ... any remotely located open or closed computer information systems," lurk on them "completely undetected," "stealthily exfiltrate information" from them and ultimately "be able to affect computer information systems through Deceive, Deny, Disrupt, Degrade, Destroy (D5) effects." "Of interest," the announcement says, "are any and all techniques to enable user and/or root-level access to both fixed [and] mobile computing platforms ... [and] methodologies to enable access to any and all operating systems, patch levels, applications and hardware." The announcement is the latest stage in the Air Force's effort to develop a cyber-war capability and establish itself as the service that delivers U.S. military power in cyberspace. Last year, the Air Force announced it was setting up a Cyberspace Command ... and was developing military doctrine for the prosecution of cyber-war operations. The developments highlight the murky legal territory on which the cyber-wars of the future will be fought. More important, because of the difficulties in identifying attackers and immediately quantifying damage from a cyber-attack, it can be hard to determine when such attacks constitute an act of war as opposed to crime or even vandalism.

Important Note: Explore our full index to revealing excerpts of key major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.