08/2/18

Corrupt Local Power Players in Politics

By: Frank Salvato

They say that all politics is local. This is true. Equally true is the notion that the government closest to you is the entity of government that affects you the most. So, when local politics and the power brokers behind local politics are corrupt the people suffer.

Corrupt politicians are nothing new to politics. They are chronicled back to the Roman Empire and before. Power plays during the times of the Pharaohs were commonplace and the Ides of March saw Caesar on the wrong end of a multitude of daggers. So, too, are power brokers infamously enshrined in the annals of history (I should have used a play on the word anal, but I assume you all did anyway).

One of the most significant double-edged swords to emerge in recent years where politics and government are concerned is social media.

On the one hand, it obliterates the monopoly on information that the mainstream media held to date. No longer can the “Big 3” networks propagandize ideologically about things like the Tet Offensive (actually a significant victory for the United States but characterized as a loss by Walter Cronkite and the rest of the mainstream media) and get away with molding the opinions of the American people. Social media has allowed the people to call the propagandist media out on manipulation.

On the other hand, we have disingenuous power players (or “trolls,” which I have written about recently) who seed disingenuous content on social media to further the poison-politics of their “operative” candidates, most often elected officials running for re-election who would serve as a gateway to monetary benefit to special interest parties. A perfect example of this would be the politician running for re-election who is bankrolled by deep pocket developers who expect quid pro quo when zoning variances and other legislation come before the local authority. “You give me a contribution and I will see the good in your project for the community,” or, in other words, “You wash my back and I’ll wash yours.”

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08/2/18

Hey Jim Acosta, This Could Be Why Media Is An Enemy

By: Denise Simon | Founders Code

Traveling over to CNN’s Jim Acosta’s Twitter account, this is his pinned tweet:

Then yesterday, he retweeted this:

And he retweeted this:

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08/2/18

Eligible Receiver 97, Red Team Being Applied Today for Cyber Hacks?

By: Denise Simon | Founders Code

An early classified Defense Department cybersecurity exercise named “Eligible Receiver 97” (ER97) featured a previously unpublicized series of mock terror attacks, hostage seizures and special operations raids that went well beyond pure cyber activities in order to demonstrate the potential scope of threats to U.S. national security posed by attacks in the cyber domain, according to recently declassified documents and a National Security Agency (NSA) video posted today by the nongovernmental National Security Archive at The George Washington University.

“Joint Exercise Eligible Receiver 97,” run during the Clinton presidency, is frequently pointed to as a critical event in the United States’ appreciation of threats in cyber space. The exercise led directly to the formation of what would eventually become the United States Cyber Command (USCYBERCOM) and informed key studies such as the formative Marsh Report on critical infrastructure protection. Despite the significance of ER97, however, very little is publicly known about the exercise itself.

ER97 involved an NSA Red Team playing the role of North Korean, Iranian and Cuban hostile forces whose putative aim was to attack critical infrastructure as well as military command-and-control capabilities to pressure the U.S. government into changing its policies toward those states. An interagency Blue Team was required to provide recommendations to personnel enacting defensive responses. Until now, only two phases out of three (infrastructure and command-and-control) had been publicly known.  The video and documents posted today provide new details about the third phase involving kinetic attacks in the physical domain – i.e. more traditional terrorist assaults on civilian targets – which were built upon intelligence gathered through the Red Team’s successes. Read more here on the declassified files.

*** With all the cyber terror going on today in the United States, are we doing more ‘red team’ exercises? Perhaps some of those tactics are paying off many years later.

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08/2/18

Night Wolves, Putin’s Hell’s Angels

By: Denise Simon | Founders Code

The Slovak foreign ministry says it is “disturbing” that the Night Wolves – a Russian nationalist biker gang close to President Vladimir Putin – now have a base in Slovakia.

The base has old military vehicles and lies in Dolna Krupa, a village 70km (44 miles) from the capital Bratislava.

The Russian government calls it the Night Wolves’ “European headquarters”.

The bikers are under US sanctions, accused of providing military help for the pro-Russian rebels in Ukraine.

So close in fact, Putin rode with them and endorses the group.

Earlier this year, the Night Wolves did a 9-day tour. Bosnia? Yes.

Members of the Night Wolves motorcycle gang visiting a monastery in Serbia. The gang’s tour, funded with a grant from the Kremlin, was billed as a “pilgrimage” meant to showcase the shared Orthodox faith of Russia and the region. Credit: Laura Boushnak for The New York Times

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08/2/18

Fed Regards Economic Growth As “Strong” For Only The Second Time This Century

By: Kent Engelke | Capitol Securities

Was yesterday’s FOMC meeting one for the record books? According to Capital Economics, for only the second time this century, the committee described economic growth as “strong.” The only other time since 2000 that the Fed has described economic growth as strong in its policy statement was May 2006, just after the GDP posted a 5.4% annualized increase. Wow!

On inflation, the statement simply noted that headline and core inflation “remain near” 2% and that inflationary expectation have been little changed. I think the FOMC is underestimating the degree to which inflation will rise in the second half of the year. Most measures of underlying inflation are still trending higher.

Regarding trade, there was no reference surrounding the uncertainty of policy, noting only that risks to the economic outlook appear “roughly balanced.”

There was little change in the monetary policy outlook as most are convinced the Fed will increase the overnight rate two more times in 2018.

The question at hand is whether or not the economy will slow in 2019, the result of higher interest rates and the waning effects of fiscal stimulus. I think ‘no’ for three simplistic reasons.

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08/2/18

Fugitive Extradited in Border Patrol Agent Brian Terry Murder

By: Denise Simon | Founders Code

Heraclio Osorio-Arellanes, left, and Border Agent Brian Terry FBI/ATF

SAN DIEGO, CA – Heraclio Osorio-Arellanes, who is charged with the first-degree murder of U.nited S.tates Border Patrol Agent Brian Terry, was extradited from Mexico to the United States today, announced Attorney General Jeff Sessions and Southern District of California U.S. Attorney Adam Braverman for the Southern District of California.  He will be arraigned in U.nited S.tates District Court in, Tucson, Arizona, Wednesday tomorrow afternoon.  Osorio-Arellanes has been in custody awaiting extradition since his arrest by Mexican authorities on April 12, 2017.

Agent Terry was fatally shot on Dec.ember 14, 2010, when he and other U.S. Border Patrol agents encountered Osorio-Arellanes and four other members of a “rip crew” (a criminal gang that attempts to steal from drug and alien smugglers) operating in a rural area north of Nogales, Arizona.  Of the six defendants charged along with Osorio-Arellanes in the case, three have pleaded guilty, two were convicted following a jury trial, and one other defendant – Jesus Rosario Favela Astorga (arrested by Mexican authorities in October, 2017) – has not yet been tried. is pending extradition to the United States.

“The Department of Justice is pleased that the suspected killer of Border Patrol Agent Brian Terry has been successfully extradited to the United States and will now face justice for this terrible crime,” said Attorney General Jeff Sessions. “We are grateful for the efforts of the Federal Bureau of Investigation, U.S. Marshals Service and U.S. Customs and Border Protection as well as our law enforcement partners in Mexico. To anyone who would take the life of an American citizen, in particular an American law enforcement officer, this action sends a clear message: Working closely with our international partners, we will hunt you down, we will find you, and we will bring you to justice.”

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