James Ridgeway

James Ridgeway

In 1965, James Ridgeway helped launch the modern muckraking era by revealing that General Motors had hired private eyes to spy on an obscure consumer advocate named Ralph Nader. He worked for many years at the Village Voice, has written 16 books, and has codirected Blood in the Face, a film about the far right. In 2012, he was named a Soros Justice Media Fellow.

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Peter King, Qaddafi, and the IRA

| Fri Mar. 11, 2011 12:27 PM PST

Peter King is, in one sense, uniquely qualified to hold hearings on the "radicalization" of young men to a terrorist cause: He may be the only member of the United States Congress to have undergone the process himself, at the hands of the Irish Republican Army.

Some of King's previous dealings with the IRA have been reported, but the depth of his embrace is best documented by Ed Moloney, author of A Secret History of the IRA and former Northern Ireland editor of the Irish Times and the Sunday Tribune, whose reportage on the IRA's operations is second to none. Moloney now writes a blog, The Broken Elbow, in which he recently recapped what he knows about King—including his links to none other than Col. Muammar Qaddafi, long known as an arms supplier to international terrorists:

The re-emergence of the old links to the IRA are embarrassing to Peter King and his response has been both utterly predictable and supremely dishonest – he has wrapped the peace process around himself as protection and justification for what he did. This is what he told the Washington Post:

"I [wanted] a peace agreement, a working agreement, where the nationalist community would feel their rights would be respected," King said in an interview at his Capitol Hill office. "I felt that the IRA, in the context of Irish history, and Sinn Fein were a legitimate force that had to be recognized and you wouldn’t have peace without them. Listen, I think I’m one of the people who brought about peace in Ireland."

The facts, sadly for him, do not support any of this. King first came to Belfast in 1980 just when the first hunger strike, the one led by Brendan Hughes, was reaching a climax, and was radicalized by what he saw and experienced. He came back for the second hunger strike, and it was then he met the family of Bobby Sands, in particular his sister Bernadette and her then partner, now husband Micky McKevitt. He would visit them on every trip he made and often stayed in their home in Louth.

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How to Put Wall Street CEOs in Prison

| Tue Mar. 8, 2011 1:59 PM PST

“Forgive me,’’ director Charles Ferguson said in receiving an Academy Award for his documentary Inside Job, "I must start by pointing out that three years after a horrific financial crisis caused by fraud, not a single financial executive has gone to jail — and that’s wrong.''

In New York, Tuesday marked the beginning of the long awaited trial of hedge fund manager Raj Rajaratnam, who ran the $7 billion Galleon Group and whose personal wealth is estimated at $1.3 billion. He is being prosecuted by the SEC for insider trade deals. Rajaratnam is said to have made $45 million in illegal profits. He has denied the charges and is free on $100 million bond. If he is convicted he could go to prison for as long as 20 years. The SEC historically has been such a handmaiden of the finance business that it's hard to imagine anything serious coming out of its prosecutions, but one never knows.

Whatever happens to Rajaratnam, it  would be simple enough to prosecute many of the high rollers on first civil, then criminal charges, fining them millions of dollars and taking them out of circulation for up to 20 years.

"Contrary to prevailing propaganda, there is a fairly straightforward case that could be launched against the CEOs and CFOs of pretty much every US bank with major trading operation," writes Yves Smith in her popular Naked Capitalism blog. "I'll call them 'dealer banks' or 'Wall Street firms' to distinguish them from very big but largely traditional commercial banks.’’ She proceeds to lay out the case, the key points of which I have excerpted below:

Since Sarbanes Oxley became law in 2002, Sections 302, 404, and 906 of that act have required these executives to establish and maintain adequate systems of internal control within their companies. In addition, they must regularly test such controls to see that they are adequate and report their findings to shareholders (through SEC reports on Form 10-Q and 10-K) and their independent accountants. “Knowingly” making false section 906 certifications is subject to fines of up to $1 million and imprisonment of up to ten years; “willful” violators face fines of up to $5 million and jail time of up to 20 years.

The officers in question must certify that, among other things, they "are responsible for establishing and maintaining internal controls" and making sure everyone concerned knows about them--and beyond that, for taking steps to have these controls evaluated and reported. Smith continues:

Libya’s Exports to Europe: Oil and Immigrants

| Thu Feb. 24, 2011 7:46 AM PST

Muammar Qaddafi and Silvio Berlusconi have more in common than their tastes for lavish parties and sexy young women, or even their notorious 2009 “friendship pact.” Despite being the buffoons of their respective regions, each wields considerable power. And they share a common destiny that revolves around two types of Libyan exports: fossil fuels, which Italy desperately wants, and migrants, which it decidedly doesn’t.

Franco Frattini, the Italian foreign minister, warned on Wednesday that the Libyan uprising could result in 350,000 unwanted immigrants landing on the European continent. According to the Italian news site Adnkronos, Italy asked the EU for support in stopping the migrants, who most often enter through Italian shores.

”We ask that Europe do its duty,” he said during a Wednesday address to parliament in Rome. We want Europe to do more managing the flow of migrants because countries cannot be left alone.”

Italy in May 2009 agreed to begin controversial joint patrols with Libya, turning back thousands of illegal immigrants aboard boats in the Mediterranean.

Libyan leader Muammer Gaddafi hinted that he may unilaterally scrap cooperation, warning that he would allow thousands of migrants to pass through his country on the way to Europe if the EU sided with opponents of his embattled rule.

Qaddafi knows all too well how to frigthen European leaders–especially Berlusconi–who have right-wing, nationalist, anti-immigrant movements at their backs. And in normal times, this sort of scare tactic might have been enough to push Europe into aquiescence as differences were papered over in some sort of “reform.” But it is too late for that. Qaddafi totters, and no one can predict what will happen in the region. Emerging politics might at best result in some version of an Indian-style democracy, at worst chaotic Somali-style warfare with faction pitted against faction.

What may be even more frightening to Italy–and to much of Europe as well–is the prospect of losing Libya’s supply of oil and natural gas. Italy gets one third of its oil from Libya by way of the big oil company ENI. The company has already pulled out most of its employees and cut back the flow of natural gas through the pipeline that connects Libya and Italy.

ENI is the sixth largest oil company in the world. It is 30 percent owned by theItalian government, which has special rights to block mergers and sharply limit holdings of other investors. About 11 percent of the company securities are held by institutions including such big American mutual funds as Vanguard and Fidelity, along with Wellington Management, the big Boston investment management concern. The top 10 institutional holders control about 8 percent of the stock. Unlike the other majors, it has most of its reserves in politically volatile North Africa, which as the oil industry goes, remains relatively underdeveloped.

In turn, as Al Jazeera reports, several other international energy giants have stakes in Libyan oil and gas. Following the 2003 rapproachment with Qaddafi,

European energy firms were quick to invest in the holder of Africa’s largest proven oil reserves, the eighth-largest in the world, while many others signed lucrative arms and construction deals.

Tony Blair, Britain’s former prime minister, signed a so-called “Deal in the Desert” in March 2004, which paved the way for oil contracts worth billions, leading to a close relationship that has come under increasing criticism.

It included Anglo-Dutch company Shell signing an agreement worth up to $1bn and three years later BP agreeing its largest exploration commitment to date, in a deal worth at least $900m in Libya.

A historical footnote: Both Libya and Italy have been important but little-known players in the evolution of Middle East oil. In March 1951 the nationalist government of Mohammad Mossadeq in Iran took over the oil industry from the Anglo Iranian Oil Company, which became BP. The CIA conpired to overthrow Mossadeq and installed the Shah. Then the U.S. stepped in with Herbert  Hoover, Jr., dispatched by President Eisenhower to reinstate the international cartel of big companies that for years had dominated the industry. Iran’s oil reserves were carved up amongst British, Dutch, French and for the first time, American interests. But it did not include Italy, which was entirely dependent on imported oil.

Angered at being cut out of the competition, Enrico Mattei, head of the Italian state company now known as ENI, went to war against the cartel, and after Suez in 1956 he persuaded the Iranian parliament to rewrite the country’s petroleum law to make way for a new sort of production system known as joint ventures. Under this arrangement the company and country became partners, and they replaced the old concessions. In short order, the joint venture opened the way for direct nationalization and the birth of OPEC.

This post originally appeared on Jim Ridgeway's blog, Unsilent Generation.

Libyan Wild Card: The Qaddafi-Berlusconi Pact

| Sun Feb. 20, 2011 8:48 PM PST

By Sunday evening, the fighting in Libya was spreading to Tripoli, and the nation’s second largest city, Benghazi, appeared to be in the hands of the protestors. Over 200 people had been killed and hundreds more wounded by security forces, and Libyan leader Muammar Qaddafi’s son, Sayf al-Islam, was warning of civil war, and pledging that the government would "fight to the last bullet" to stay in office.’

The Libyan protests have been inspired by the wave of uprisings across North Africa, but they grow out of deep-seated poverty, unemployment, and political repression at the hands of yet another entrenched despot. Whether they will result in Libya achieving the sort of change experienced by Tunisia and Egypt is impossible to say, but early signs indicate that whatever the outcome, a high price is likely to be paid in human life.

Complicating matters is Libya’s unusual position in world affairs. Not long ago it was a pariah nation. But since 9/11, it has wormed its way back into favor with the United States and Europe because Qaddafi joined the war on terror, cooperating in the Lockerbie bomb investigation, coming down hard on al Qaeda, and kicking out terrorists he had once sheltered. At the same time, he has steered Libya into an increasingly powerful position in world politics because of its vast oil reserves. Libya has an especially close relationship with its former colonial master, Italy. It now provides about 20 percent of all Italy’s oil imports and has invested in sizeable amounts in that country’s energy infrastructure including the transnational energy giant ENI.

Along with their energy deals, Italian Prime Minister Silvio Berlusconi and Qaddafi have agreed to work together to stem the increasing numbers of migrants seeking a better life in Europe. In addition to those leaving from North Africa, thousands more have been moving up the Red Sea from Eritrea, Sudan, Somalia and other countries. Their point of entry is Italy–specifically, the small Italian island of Lampedusa, which lies in the Mediterranean midway between Libya and Sicily. 

In 2009, Qaddafi and Berlusconi made an agreement that became part of an open and often vicious campaign against migrants: Libya would try to keep them from leaving in the first place; if they got out, Italy would send them back to Libya without providing them a chance to make asylum claims.

Human Rights Watch has documented the attacks on migrants in a detailed report called Pushed Back, Pushed Around: Italy’s Forced Return of Boat Migrants and Asylum Seekers, Libya’s Mistreatment of Migrants and Asylum Seekers. Here is but a brief account of the two nations in action:

Death Row Inmates Sue the FDA Over Execution Drugs

| Thu Feb. 10, 2011 10:17 AM PST

“In keeping with established practice, FDA does not review or approve products for the purpose of lethal injection. FDA has not reviewed the products in this shipment to determine their identity, safety, effectiveness, purity, or any other characteristics.”

This is the statement now imprinted on shipments of lethal injection drugs that are brought into the country from foreign sources. Now, a group of six death row inmates is suing the Food and Drug Administration, claiming that the agency’s decision to allow one execution drug across U.S. borders without FDA approval is ”manifestly contrary to law and amount[s] to an abdication of the obligations imposed” by the Food, Drug and Cosmetic Act of 1938.

The prisoner’s lawsuit stand to throw a serious monkey wrench into the machinery of death. Sodium thiopental, an anesthetic, is one component of the three-drug death cocktail used by most death penalty states–and it is now seriously hard to come by in the United States. This fact has already delayed executions or changed execution protocols in several states.

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