President Bush and Defense Secretary Rumsfeld Issued Secret Orders to Attack Other Nations

Secret Order Lets U.S. Raid Al Qaeda in Many Countries

November 10, 2008, Washington, DC — The United States military since 2004 has used broad, secret authority to carry out nearly a dozen previously undisclosed attacks against Al Qaeda and other militants in Syria, Pakistan and elsewhere, according to senior American officials.

These military raids, typically carried out by Special Operations forces, were authorized by a classified order that Defense Secretary Donald H. Rumsfeld signed in the spring of 2004 with the approval of President Bush, the officials said. The secret order gave the military new authority to attack the Qaeda terrorist network anywhere in the world, and a more sweeping mandate to conduct operations in countries not at war with the United States.

In 2006, for example, a Navy Seal team raided a suspected militants’ compound in the Bajaur region of Pakistan, according to a former top official of the Central Intelligence Agency. Officials watched the entire mission — captured by the video camera of a remotely piloted Predator aircraft — in real time in the C.I.A.’s Counterterrorist Center at the agency’s headquarters in Virginia 7,000 miles away.

Some of the military missions have been conducted in close coordination with the C.I.A., according to senior American officials, who said that in others, like the Special Operations raid in Syria on Oct. 26 of this year, the military commandos acted in support of C.I.A.-directed operations.

But as many as a dozen additional operations have been canceled in the past four years, often to the dismay of military commanders, senior military officials said. They said senior administration officials had decided in these cases that the missions were too risky, were too diplomatically explosive or relied on insufficient evidence.

More than a half-dozen officials, including current and former military and intelligence officials as well as senior Bush administration policy makers, described details of the 2004 military order on the condition of anonymity because of its politically delicate nature. Spokesmen for the White House, the Defense Department and the military declined to comment.

Apart from the 2006 raid into Pakistan, the American officials refused to describe in detail what they said had been nearly a dozen previously undisclosed attacks, except to say they had been carried out in Syria, Pakistan and other countries. They made clear that there had been no raids into Iran using that authority, but they suggested that American forces had carried out reconnaissance missions in Iran using other classified directives.

According to a senior administration official, the new authority was spelled out in a classified document called “Al Qaeda Network Exord,” or execute order, that streamlined the approval process for the military to act outside officially declared war zones. Where in the past the Pentagon needed to get approval for missions on a case-by-case basis, which could take days when there were only hours to act, the new order specified a way for Pentagon planners to get the green light for a mission far more quickly, the official said.

It also allowed senior officials to think through how the United States would respond if a mission went badly. “If that helicopter goes down in Syria en route to a target,” a former senior military official said, “the American response would not have to be worked out on the fly.”

The 2004 order was a step in the evolution of how the American government sought to kill or capture Qaeda terrorists around the world. It was issued after the Bush administration had already granted America’s intelligence agencies sweeping power to secretly detain and interrogate terrorism suspects in overseas prisons and to conduct warrantless eavesdropping on telephone and electronic communications.

Shortly after the Sept. 11 attacks, Mr. Bush issued a classified order authorizing the C.I.A. to kill or capture Qaeda militants around the globe. By 2003, American intelligence agencies and the military had developed a much deeper understanding of Al Qaeda’s extensive global network, and Mr. Rumsfeld pressed hard to unleash the military’s vast firepower against militants outside the combat zones of Iraq and Afghanistan.

The 2004 order identifies 15 to 20 countries, including Syria, Pakistan, Yemen, Saudi Arabia and several other Persian Gulf states, where Qaeda militants were believed to be operating or to have sought sanctuary, a senior administration official said.

Even with the order, each specific mission requires high-level government approval. Targets in Somalia, for instance, need at least the approval of the defense secretary, the administration official said, while targets in a handful of countries, including Pakistan and Syria, require presidential approval.

The Pentagon has exercised its authority frequently, dispatching commandos to countries including Pakistan and Somalia. Details of a few of these strikes have previously been reported.

For example, shortly after Ethiopian troops crossed into Somalia in late 2006 to dislodge an Islamist regime in Mogadishu, the Pentagon’s Joint Special Operations Command quietly sent operatives and AC-130 gunships to an airstrip near the Ethiopian town of Dire Dawa. From there, members of a classified unit called Task Force 88 crossed repeatedly into Somalia to hunt senior members of a Qaeda cell believed to be responsible for the 1998 American Embassy bombings in Kenya and Tanzania.

At the time, American officials said Special Operations troops were operating under a classified directive authorizing the military to kill or capture Qaeda operatives if failure to act quickly would mean the United States had lost a “fleeting opportunity” to neutralize the enemy.

Occasionally, the officials said, Special Operations troops would land in Somalia to assess the strikes’ results. On Jan. 7, 2007, an AC-130 struck an isolated fishing village near the Kenyan border, and within hours, American commandos and Ethiopian troops were examining the rubble to determine whether any Qaeda operatives had been killed.

But even with the new authority, proposed Pentagon missions were sometimes scrubbed because of bad intelligence or bureaucratic entanglements, senior administration officials said.

The details of one of those aborted operations, in early 2005, were reported by The New York Times last June. In that case, an operation to send a team of the Navy Seals and the Army Rangers into Pakistan to capture Ayman al-Zawahri, Osama bin Laden’s top deputy, was aborted at the last minute.

Mr. Zawahri was believed by intelligence officials to be attending a meeting in Bajaur, in Pakistan’s tribal areas, and the Pentagon’s Joint Special Operations Command hastily put together a plan to capture him. There were strong disagreements inside the Pentagon and the C.I.A. about the quality of the intelligence, however, and some in the military expressed concern that the mission was unnecessarily risky.

Porter J. Goss, the C.I.A. director at the time, urged the military to carry out the mission, and some in the C.I.A. even wanted to execute it without informing Ryan C. Crocker, then the American ambassador to Pakistan. Mr. Rumsfeld ultimately refused to authorize the mission.

Former military and intelligence officials said that Lt. Gen. Stanley A. McChrystal, who recently completed his tour as head of the Joint Special Operations Command, had pressed for years to win approval for commando missions into Pakistan. But the missions were frequently rejected because officials in Washington determined that the risks to American troops and the alliance with Pakistan were too great.

Capt. John Kirby, a spokesman for General McChrystal, who is now director of the military’s Joint Staff, declined to comment.

The recent raid into Syria was not the first time that Special Operations forces had operated in that country, according to a senior military official and an outside adviser to the Pentagon.

Since the Iraq war began, the official and the outside adviser said, Special Operations forces have several times made cross-border raids aimed at militants and infrastructure aiding the flow of foreign fighters into Iraq.

The raid in late October, however, was much more noticeable than the previous raids, military officials said, which helps explain why it drew a sharp protest from the Syrian government.

Negotiations to hammer out the 2004 order took place over nearly a year and involved wrangling between the Pentagon and the C.I.A. and the State Department about the military’s proper role around the world, several administration officials said.

American officials said there had been debate over whether to include Iran in the 2004 order, but ultimately Iran was set aside, possibly to be dealt with under a separate authorization.

Senior officials of the State Department and the C.I.A. voiced fears that military commandos would encroach on their turf, conducting operations that historically the C.I.A. had carried out, and running missions without an ambassador’s knowledge or approval.

Mr. Rumsfeld had pushed in the years after the Sept. 11 attacks to expand the mission of Special Operations troops to include intelligence gathering and counterterrorism operations in countries where American commandos had not operated before.

Bush administration officials have shown a determination to operate under an expansive definition of self-defense that provides a legal rationale for strikes on militant targets in sovereign nations without those countries’ consent.

Several officials said the negotiations over the 2004 order resulted in closer coordination among the Pentagon, the State Department and the C.I.A., and set a very high standard for the quality of intelligence necessary to gain approval for an attack.

The 2004 order also provided a foundation for the orders that Mr. Bush approved in July allowing the military to conduct raids into the Pakistani tribal areas, including the Sept. 3 operation by Special Operations forces that killed about 20 militants, American officials said.

Administration officials said that Mr. Bush’s approval had paved the way for Defense Secretary Robert M. Gates to sign an order — separate from the 2004 order — that specifically directed the military to plan a series of operations, in cooperation with the C.I.A., on the Qaeda network and other militant groups linked to it in Pakistan.

Unlike the 2004 order, in which Special Operations commanders nominated targets for approval by senior government officials, the order in July was more of a top-down approach, directing the military to work with the C.I.A. to find targets in the tribal areas, administration officials said. They said each target still needed to be approved by the group of Mr. Bush’s top national security and foreign policy advisers, called the Principals Committee.

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Nov 10, Civil Liberties News: VCS Urges Our Members to Sign Petition to Close Guantanamo Bay Prison Camp

The ACLU and Brave New Foundation are collaborating on a series of videos containing direct testimony from those with firsthand knowledge of the system of injustice that thrives at Gitmo.

November 10, 2008 

Dear President-Elect Obama,

Nothing would make me prouder than to see you act on your first day in office to restore America’s moral leadership in the world. With one stroke of your pen, you can close Guantánamo Bay prison, shut down military commissions, and ban torture. The restoration of American freedom is in your hands. Give us back the America we believe in. see the complete letter>

VCS urges our members and supporters to please view the ACLU / Brave New Foundation video and sign open letter.: http://www.closegitmo.com/

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Obama’s Afghanistan Challenge

November 10, 2008 – During his quest for the presidency, president-elect Barack Obama scored considerable points with the American public when he stated that America must “get off the wrong battlefield in Iraq and take the fight to the terrorists in Pakistan.” That is where bin Laden and al Qaeda are, he emphasized.

Taking advantage of the Iraq war’s unpopularity, Obama promised to send more American troops to the Pakistan-Afghan front as they become available from Mesopotamia, making that proposal a central plank in his foreign policy platform. His pronouncement on the Afghan war theater was also meant to give Obama credibility in an area he was deemed weakest: foreign affairs.

But with the election now over, the challenges facing the incoming president in the turbulent Afghanistan-Pakistan region are much more complex than those espoused on the campaign trail. And their resolution will also require more than the two extra brigades Obama said he will send to Afghanistan next year.

On the issue of troop numbers alone, military analysts agree more foreign soldiers are needed in the Afghanistan-Pakistan area of operations. According to the military website, strategypage.com, the Taliban has increased its number of fighters by 20 to 30 percent this year due to an upsurge in drug revenues. As well, defeated al Qaeda fighters and bomb makers from Iraq have rallied to the terrorist organization’s border sanctuaries in Pakistan where their presence has been felt in the Afghanistan conflict.

In turn, this growth in al Qaeda and Taliban numbers has caused an increase in violence in Afghanistan this year and a corresponding larger number of American and allied casualties. But perhaps even worse from both the security viewpoint and the winning of hearts and minds, NATO troops and Afghan troops have had to withdraw from areas they once controlled due to a lack of boots on the ground, leaving the local population to the mercies of the Taliban. A senior Canadian officer said the Canadian contingent would need to double its numbers to 5,000 to keep the Taliban away from important districts around Kandahar, the Taliban’s birthplace.

As a result, military experts have estimated that the number of American and NATO troops in Afghanistan should be tripled from the present 50,000-60,000 to about 150,000, and the Afghan army and national police be increased from its present size of about 120,000 to 500,000. These numbers are similar to those which were responsible for successfully bringing a war-torn Iraq under control, a country smaller in size and population than Afghanistan.

But the question is whether Obama, who promised to bring American troops home from Iraq within 16 months after being elected, would be willing to redirect them so soon to Afghanistan. And will he be willing to send the large numbers deemed necessary to do the job? Failure to do so would lead to the suspicion that Obama was simply using the Afghanistan conflict and the call to fight bin Laden and al Qaeda as an excuse to end the Iraq war the Democrats detest.

Another major challenge facing the Obama administration in Afghanistan is the Afghan government itself. Corruption is rife among Afghan officials and police, who have lost much trust among the Afghan people. Money for rebuilding the country has gone missing. And even President Hamid Karzai and his brother have been accused of accepting bribes from drug gangs. It is here, in the all-important civil sector, that the war may be lost since no viable state can be set up without the Afghan people’s support. With such misrule, even if the Taliban were defeated, Afghanistan would probably relapse into the warlordism of the 1990s without a NATO presence.

What should hearten the incoming president, though, is that conditions in Pakistan are improving regarding the war against Islamic extremists on Pakistani territory. This is good news for Obama, since events in Afghanistan are a consequence of what is happening in Pakistan.

The Pakistan government outlawed the Taliban and launched an all-out offensive against it and al Qaeda last August in their border sanctuaries. Hundreds of Taliban and al Qaeda fighters have been killed since then and hundreds more foreign combatants have been arrested. The Pakistani Taliban is so hard-pressed, it has offered to lay down its arms and hold talks with the government, an offer President Asif Zardari, in his determination to eliminate the extremist threat to seize the Pakistani state, has so far refused. But it will still be some time, Pakistani officials admit, before that threat will be completely eliminated.

The Pakistani government’s resolute action against al Qaeda and the Taliban, however, may let Obama off the hook on one of his more controversial campaign promises. Obama stated he would send troops into Pakistan without that government’s permission if “actionable intelligence” existed that al Qaeda was planning another terrorist attack against America and the Pakistanis were failing to act on it. This statement made him unpopular in Pakistan, one of the few countries where he trailed in the popularity polls during the election campaign.

In the end, Obama may bring his own tools to the table to deal with the challenge of Afghanistan. He has stated he believes in a multilateral approach in dealing with international problems, so he may include countries such as Russia, Iran and the Central Asian states in talks regarding the Afghanistan conflict. The president-elect also said it will be necessary to “win over the hearts and minds of 1.3 billion Muslims” or ‘it was going to be very difficult for us to win the long war against extremism.” This represents a greater challenge, of which Afghanistan is a part; but success here would constitute Obama’s greatest achievement of all.

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Iraq War Veteran Suicide in Southern California

November 9, 2008, Fallbrook, California – Marine officials on Saturday released the identity of a officer believed to have killed himself in the Fallbrook home he shared with his wife and his mother.

Capt. Jonathan N. Keslerramirez, 35, was found dead Friday, officials said.

The medical examiner’s office reported that Keslerramirez died of a gunshot wound and was found by his mother.

A native of Nueces, Texas, Keslerramirez served as a ground supply officer with Marine Corps Base Camp Pendleton’s Security Battalion, military officials said.

Keslerramirez deployed twice in support of Operation Iraqi Freedom, according to officials, but the date of his most recent return was not available over the weekend.

Keslerramirez enlisted in the Corps May 5, 1992, and accepted his commission on May 26, 2003, officials said. His date of rank was July 1, 2008.

Keslerramirez received the Navy and Marine Corps Commendation Medal, Navy and Marine Corps Achievement Medal, Combat Action Ribbon, Navy Unit Commendation, Marine Corps Good Conduct Medal, National Defense Service Medal, Armed Forces Expeditionary Medal, Iraq Campaign Medal, Global War on Terrorism Expeditionary Medal, Global War on Terrorism Service Medal and the Sea Service Deployment Ribbon.

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Pentagon Board Says Cuts Essential

November 10, 2008 – A senior Pentagon advisory group, in a series of bluntly worded briefings, is warning President-elect Barack Obama that the Defense Department’s current budget is “not sustainable,” and he must scale back or eliminate some of the military’s most prized weapons programs.

The briefings were prepared by the Defense Business Board, an internal management oversight body. It contends that the nation’s recent financial crisis makes it imperative that the Pentagon and Congress slash some of the nation’s most costly and troubled weapons to ensure they can finance the military’s most pressing priorities.

Those include rebuilding ground forces battered by multiple tours to Iraq and Afghanistan and expanding the ranks to wage the war on terrorism.

“Business as usual is no longer an option,” according to one of the internal briefings prepared in late October for the presidential transition, copies of which were provided to the Globe. “The current and future fiscal environments facing the department demand bold action.”

The briefings do not specify which programs should be cut, but defense analysts say that prime targets would probably include the new F-35 fight er jet, a series of Navy ship programs, and a massive Army project to build a new generation of ground combat vehicles, all of which have been skyrocketing in cost and suffering long development delays.

Such cuts would affect the New England economy. General Dynamics builds warships and submarines in Maine and Connecticut, while Raytheon, Massachusetts’ largest employer, is involved in numerous weapons programs from ships to missile defenses and satellites.

Pentagon insiders and defense budget specialists say the Pentagon has been on a largely unchecked spending spree since 2001 that will prove politically difficult to curtail but nevertheless must be reined in.

“The forces arrayed against terminating defense programs are today so powerful that if you try to do that it will be like the British Army at the Somme in World War I,” said Winslow Wheeler, director of the Straus Military Reform Project at the liberal Center for Defense Information in Washington. “You will just get mowed down by the defense industry and military services’ machine guns.”

Since the Sept. 11, 2001 terrorist attacks, funding has grown for both the annual defense budget and emergency spending for the wars in Iraq and Afghanistan. The latest Pentagon budget, for the fiscal year that began Oct. 1, is an estimated $512 billion, not including more than $800 billion in additional war spending that has been allotted since 2001.

But a series of forces are now at play that make such large expenditures untenable, according to the Defense Business Board, the Pentagon oversight group, which includes about 20 private sector executives appointed by the secretary of defense.

The board, which meets at least four times a year, has a full-time staff and is an official government body. Because the board’s report has not been made public, a Pentagon spokesman would not comment on it.

One factor is historical. Since the end of World War II there have a been four periods of significant increases in US defense spending and all were followed by significant decreases in funding from Congress, the group says.

Added pressure on the Pentagon budget comes from what the briefing calls “fiscal constraint in a tough economy” that is saddled with rising deficits and growing political support for increased government spending in other areas.

“We are all acutely aware there is a financial crisis going on,” said a senior defense official closely involved in the transition process.

Exacerbating the problem, according to the advisory group, are the rising costs of military personnel, their healthcare, and overhead. The documents estimate that more than half the annual defense budget now goes to “people costs,” including $60 billion a year for the healthcare of service members and retirees.

They will almost certainly grow, even with a reduction in US troops in Iraq, given that the Pentagon has said it will increase ground forces by more than 70,000 troops over the next few years.

That leaves dozens of weapons systems and other equipment under development as prime areas for cost-savings, according to Steven Kosiak, vice president of budget studies at the nonpartisan Center for Strategic and Budgetary Assessments in Washington.

“The areas most likely to get cut are acquisition and procurement,” Kosiak said. “As long as the administration is committed to increasing troop strength you have to pay those people costs, and there is not a lot of flexibility when it comes to benefits.”

A recent analysis by the Government Accountability Office, the investigative arm of Congress, assessed the Pentagon’s 95 largest weapons programs and found that as of March 2008 they had collectively increased in cost by nearly $300 billion over initial estimates.

“None had proceeded through development while meeting the best-practice standards for mature technologies, stable design, and mature production processes all prerequisites for achieving planned cost and schedule outcomes,” the GAO said in documents published last week to help guide the presidential transition.

It added: “Over the next five years, [the Defense Department] expects to invest more than $357 billion on major defense acquisition programs. Much of this investment will be used to address cost overruns rooted in poor planning, execution, and oversight.”

All the branches of the military are in a similar situation. The Army plans to invest an estimated $160 billion in the coming years on a set of new combat vehicles collectively known as the Future Combat System. But their capabilities “are still early in development and have not yet been demonstrated,” according to GAO.

The Navy, meanwhile, has continued to bust its budget for shipbuilding. The service’s six most recent new ship designs have experienced cumulative cost growth of $2.4 billion over original estimates, according to GAO. Their delivery has also been delayed, on average, by 97 months.

The Air Force’s portfolio for new equipment, meanwhile, “will demand unprecedented levels of funding,” according to GAO’s transition materials. Its development costs have increased nearly 50 percent above original estimates and eight separate programs have had to report cost breaches to Congress.

The F-35 Joint Strike Fighter – designed for the Air Force, Navy and Marine Corps and the most costly aircraft procurement effort in history – “faces considerable risks stemming from its decision to reduce test assets and the flight-test program to pay for development and manufacturing cost increases,” according to the GAO.

Other programs suffering from big cost increases and delays include space systems such as satellites and the national missile defense system, the largest research and development program on the Pentagon’s books.

Together these programs constitute a military crisis in their own right, according to the internal Pentagon documents.

The Pentagon, one document states, “cannot reset the current force, modernize and transform in all portfolios at the same time. Choices must be made across capabilities and within systems to deliver capability at known prices within a specific period of time.”

And a few cuts here or there won’t do the trick, they add. “Taking cuts at the margin won’t work this time, nor will pushing things off to later years.”

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Our VCS Veterans Day Message

This week’s VCS update focuses on five pieces of news you will want to share with your friends on Veterans Day.

First, PTSD News. In a bold and courageous step, a high-ranking officer took a sledge hammer to the wall of silence that prevents many combat veterans from seeking mental healthcare. Army Major General David Blackledge came forward to say he has post traumatic stress disorder (PTSD), and that he sought psychiatric care. If you have concerns about your mental health, it is OK to seek VA care. Thank you General Blackledge, you are saving veterans’ lives.

Second, More PTSD News. Two veterans’ groups sued VA due to long delays in processing PTSD disability compensation claims. VA currently takes more than six months to process a PTSD claim, and appeals drag on for years, while veterans and their families can’t pay the rent, buy food, or cover the costs of utilities. The lawsuit is a blunt and honest reminder of the abject failure of the current Administration to address the needs of our Nation’s veterans.

Third, Hope for VA in 2009. VCS released our “Vision for a Vibrant VA in 2009,” a report detailing VA’s serious problems as well as pragmatic solutions to fix them. VCS sent our report to President-Elect Barack Obama. VA remains in crisis, yet there is hope on the way. How bitterly ironic it is to learn that last month President George W. Bush gave a stealth $140 billion dollar tax break to banks while hundreds of thousands of veterans remain homeless, while hundreds of thousands more veterans wait forever for VA assistance, and millions foreclosures rock our Nation.

Fourth, How Did Veterans Vote? Everyone wants to know how veterans voted for President. Here are the facts. In a huge surprise, younger veterans favored Senator Obama over Senator McCain. The national Edison/Mitofsky exit poll included the following question: “Have you ever served in the U.S. military?” Veterans made up 15 percent of the voters, and among all veterans, 54 percent backed John McCain and 44 percent supported Barack Obama.

There was a tremendous difference in voting based on age, with younger voters supporting Obama, and older veterans supporting McCain:
– 24 percent of veterans were under 45: 51 percent voted for Obama and 49 percent for McCain.
– 24 percent of veterans were aged 45 to 59: 53 percent voted for Obama and 45 percent for McCain.
– 53 percent of veterans were age 60 and older: 61 percent voted for McCain and 37 percent voted for Obama.

And, Fifth, Let’s Close Gitmo. Our service members and veterans swore an oath to protect and defend our Constitution. That’s what Veterans Day is all about. That’s why VCS urges you to join several groups in calling for President-Elect Obama to close the prisoner of war camp and torture facilities at Guantanamo Bay, Cuba.

We ask you to assist VCS this Veterans Day by making a generous contribution so we can continue to hold our next President and Congress responsible for taking care of our troops, our veterans, and our Constitution.

Thank you,

Paul Sullivan, Executive Director
Veterans for Common Sense

VCS provides advocacy and publicity for issues related to veterans, national security, and civil liberties. VCS is registered with the IRS as a non-profit 501(c)(3) charity, and donations are tax deductible.

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Editorial Column: More Pain to Come Treating Hundreds of Thousands of Wounded from Iraq and Afghanistan

President Bush will bequeath President-Elect Obama a national debt — $10.5 trillion and rising — that has almost doubled since he took office, even before you factor in the full costs of the financial bailout and the Medicare prescription benefit, as well as the price tag for providing for the hundreds of thousands of returning Iraq war veterans.

More Pain to Come, Even if Obama is Perfect

November 9, 2008 – This is one hell of a way to win.

Barack Obama owes his victory in large measure to the prospect of the longest and deepest economic downturn in a quarter-century and perhaps since the Great Depression. If he performs well, he could become a great president. If he flubs it, he could get the same reception as Jimmy Carter. In the crassest political terms, it was good luck to have the financial crisis hit so close to the election. But Obama’s lucky streak will end in a hurry if he can’t find a way out of this mess. He will also have to manage expectations: Even if he does everything perfectly, we probably won’t turn the corner for 18 months, and the downturn could last far longer than that.

The first task facing President-elect Obama, after eight years of misguided economic policies, will be to begin the recovery — or at least forestall a further decline. It won’t be easy. Some 1.2 million jobs have already been shed this year, and some three-quarters of a million Americans are about to exhaust their limited unemployment-insurance benefits. By October, only 32 percent of unemployed Americans were receiving unemployment checks. To make matters worse, when Americans lose their jobs, they typically lose their health insurance, too. Meanwhile, 3.8 million homes are under foreclosure, and states are facing massive revenue shortfalls; without assistance, they will have to cut spending, plunging the economy deeper into recession.

So some steps are obvious: assistance to homeowners and bankruptcy reform; extending unemployment insurance; and making up for the gap in state revenue. The United States also has an infrastructure deficit, not just a fiscal and trade deficit, which means that spending more on infrastructure (such as public transport and technology — especially of the green variety) will stimulate the economy in the short term and help us be more competitive in the long run.

But then matters start to get trickier. The economy obviously needs a direct shot in the arm, but the 44th president needs to be careful about the design of the stimulus he proposes. That’s because President Bush will bequeath him a national debt — $10.5 trillion and rising — that has almost doubled since he took office, even before you factor in the full costs of the financial bailout and the Medicare prescription benefit, as well as the price tag for providing for the hundreds of thousands of returning Iraq war veterans.

To his credit, Obama knows much of this. During the campaign, he argued against cutting taxes on upper-income Americans, who have done so well in recent years. In addition to repealing the 2001-03 tax cuts for the wealthiest, Obama should also consider taxing dividends and capital gains at the same rate as ordinary income: It would reduce the deficit, have few short-term adverse effects on an already reeling economy and make the tax code more fair. After all, why should speculators — whether on oil, food or real estate — be taxed less than those who work long hours to make a living?

Another major problem Obama has to tackle is growing inequality in this country. Some of these trends will take decades to reverse, but ensuring that no Americans are denied a college education because they can’t afford it, providing adequate funding for public primary and secondary schools and so forth would be a good beginning

Obama has also promised to wind down the war in Iraq. Spending a fraction of the war’s cost — my estimate places the total at $3 trillion for our entire economy — on investments within the United States would help reduce the deficit and boost economic growth at home.

While the federal deficit looms over the Obama administration’s economic deliberations, we must be careful not to let it block bold action. Sometimes, we’re wiser to pay now rather than later. Borrowing for high-yielding investments (not just Wall Street bailouts) is common sense. The decisions not to reinforce the levees in New Orleans or upgrade the bridges in Minneapolis were penny-wise, pound-foolish blunders that we lived to regret.

The root of so many of our problems is the reeling financial sector. The plan cooked up by Bush and his Treasury secretary, Henry M. Paulson Jr., isn’t likely to work, or work well enough. So Obama’s team will have to wade in.

Already, the banks have been talking about using taxpayers’ money for dividends, bonuses and acquiring other banks, rather than doing more lending, which was clearly what Congress had in mind for the $700 billion. U.S. taxpayers got a raw deal, compared to the terms won by other governments (such as Great Britain) or by the legendary investor Warren Buffett, who provided capital to the best capitalized investment bank, Paulson’s own Goldman Sachs. Want further proof that Washington got a lousy deal? Look at how the markets reacted. The share prices of the bailed-out banks shot up, showing that investors expected net profits to rise substantially.

The U.S. financial sector, once the emblem of our economic success, has failed us. Financial markets are supposed to allocate capital and manage risk; instead, they squandered capital and created risk. Even more galling, the banks’ chiefs raked in private rewards totally out of whack with what scant good they were doing for the wider society.

So Obama will have to push for major changes, in both regulations and the overall systems of carrots and sticks, to restore confidence, spur lending and ensure that our financial markets do what they are supposed to do. This may require, for instance, restricting some of the special benefits (such as easy-to-get Federal Reserve loans) granted to the banks in recent months only to well-behaved institutions that actually lend more and use publicly provided funds responsibly. And it means that the financial sector should not only fully repay the bailout funds it has received but also give taxpayers a return commensurate with the risks the country has undertaken. If that means taxing the banks, so be it. Wall Street would demand no less if it were doling out its own money.

Obama will also need to deal with some vast inefficiencies in our economy if we are to prevent further erosions in our standard of living. Some U.S. sectors are global leaders, such as our world-beating universities and the high-tech firms that thrive on the ideas hatched in our ivory towers. Others are embarrassing, such as health care, where Americans spend far more than citizens in many other industrialized countries and get underwhelming results. We need a bold approach here, reforming not just the way we provide medicine but also thinking more broadly about health. That means doing more about diseases associated with alcohol, drugs, tobacco and obesity, which have increasingly come to symbolize American over-consumption.

Similarly, we should think more broadly about the bang we get for our buck in international affairs. Our current military expenditures are a serious drain; we could get more security for far less money if we didn’t waste so much on weapons systems that don’t work or are designed to fight enemies that don’t exist. (Think the Air Force’s multibillion-dollar program for a new deep-strike bomber that would be completely useless against terrorists.) Moreover, we might be the richest country in the world, but we have been among the stingiest of the advanced industrial countries when it comes to fighting global poverty and disease. We devote only 0.16 percent of our world-leading GDP to foreign aid, among the lowest rates in the developed world. If we make the World Bank and the International Monetary Fund more democratic, we will lose some voting power, but we will gain tremendously in “soft power,” or global influence.

Obama is also inheriting a climate crisis. The United States and China have been racing to see which nation will contribute most to the greenhouse gases that cause global warming. It looks as though China will win in absolute terms, but on a per capita basis, America takes the smoggy cake. We cannot save the planet without a global agreement, and we cannot get such an agreement without massive reductions in U.S. emissions. This transition could have upsides beyond the environmental ones. A carbon tax — or the auctioning of emissions permits — could generate huge revenues; some of those could be used to help Americans adjust to the new “green economy,” while the rest could be used to reduce the deficit or lower taxes on workers. But we really have little choice here: Europe and other global players are likely to slap a carbon tax on U.S. goods if we don’t deal with the issue at home. Their firms will not tolerate giving U.S. firms a competitive advantage simply because we refuse to bear our responsibility for the global environment.

We may be witnessing the birth of a new economic model. We have been treating two of the world’s scarcest resources, air and water, as if they were actually free. No wonder we have paid so little attention to resource-saving innovations. Perversely, the U.S. tax code has actually been subsidizing the production of the very fossil fuels that contribute to global warming. We have been pursuing a policy that amounts to “Drain America first.” It has made us even more dependent on oil imports — a stunningly short-sighted plan.

And in the rare cases when we have turned to renewable sources of fuel, we have done so in a manner driven by special interests, not by common sense. Subsidies to corn-based ethanol, for instance, offer little if any benefit to the environment; such handouts have been justified in the name of helping out an infant industry that will stand on its own feet if given a good start. But ethanol is an infant that has refused to grow up.

The new economic model will require changes in the ways and places where we live and work. There will be some losers (including the oil industry, which has done jarringly well in recent years), but there will be even more winners.

In so many ways, the United States has reached a low point. Picking ourselves up off the ground is itself no mean achievement. But I hope that our new president will do even more for us than that.

Joseph Stiglitz, a professor at Columbia University, won the Nobel Prize in economics in 2001. His latest book, with Linda J. Bilmes, is “The Three Trillion Dollar War.”

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Nov 9, Editorial Column: War Veterans with TBI Pay the Price of Waste at VA

War Veterans With Traumatic Brain Injury Pay the Price of Waste at VA, Says Dr. Robert Van Boven

November 6, 2008, Austin, Texas – The following was released today by Dr. Robert Van Boven, M.D., D.D.S.: A recent report from the U.S. Department of Veterans Affairs Office of Inspector General (OIG; report no. 08-01105-171) substantiated waste, mismanagement and inaction to disclosures of fraud, waste, sexual harassment and research mismanagement at the Central Texas Veterans Health Care System (CTVHCS).

Inaction to these serious disclosures constitutes violations of the VA secretary’s memo on senior management conduct and performance issues. Misconduct and neglect of duty are also in violation of Statute 5 U.S.C. Moreover, this inaction undermines the integrity of the Department and our commitment to our veterans. Further, the great promise of a new traumatic brain injury treatment research program, the Brain Imaging and Recovery Laboratory (BIRL) at CTVHCS in Austin, Tex., was shattered one day after its inaugural open house, and to date nearly $2.5 million and 2 1/2 years have been wasted. (See http://www.veteransforcommonsense.org/articleid/11541).

“With estimates of more than 40,000 soldiers returning home with traumatic brain injury, this waste and mismanagement is a disservice to our wounded heroes,” said Dr. Robert Van Boven, physician-scientist specializing in TBI research.

The VA OIG report a) substantiated the allegations made by Van Boven of waste and mismanagement; b) confirmed failures of human subjects protections; c) discovered failures of security and privacy compliance; d) found evidence supporting the claim that funded work was scientifically invalid; e) discovered a faulty contract resulting in the waste of hundreds of thousands of dollars; and f) found CTVHCS failed to comply with VA policy in contracting with a contractor. This contractor was also found to have worked without a contract, committed plagiarism, lied about work-product not submitted, and collected $107,000 over nine months while working on-site one day per week but billing 35 hours per week.

The OIG also confirmed that senior management failed to act despite knowledge of the serious nature of the disclosures. The OIG report concluded, “We found no written evidence that CTVHCS leadership requested an accounting of BIRL expenditures following [Dr. Van Boven’s] October 15, 2007 letter or otherwise investigated the appropriateness of BIRL expenditures.”

The Chief of Staff (COS) at CTVHCS testified that he was clearly aware of these disclosures, yet he failed to act. At a VA hearing, the COS stated that Dr. Van Boven “expressed concern that [an investigator’s] research was ill-conceived, and he [the investigator] was making excessive use of a consultant, and that the consultant could be padding his hours, and a bunch of things.” Instead of remedies, ultimately electronic erasure and retraction of the disclosures were requested by management. Further, senior management’s role in these improprieties went unchecked, suggesting a failure of internal policing of wrong-doing and condoning of such behavior.

“In sum, my disclosures of waste, fraud, and mismanagement were shown to have merit by the VA OIG,” said Van Boven. “However, one of the most egregious of these transgressions is the abuse of power and suppression of disclosures of violations by senior management.”

“As we give tribute to those who have ‘borne the battle’ in service to our country this Veteran’s Day, I call on the VA to commit to ensuring responsible and accountable use of taxpayer dollars to serve and help our veterans lead productive and fulfilling lives.”

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Iraq War News: United Kingdom to Pull Troops Out of Iraq by April 2009

The majority of British troops will be out of Iraq by next April with final negotiations underway for a mass withdrawal, it was claimed today.

November 7, 2008 – Speaking during a visit to Basra, Douglas Alexander, the International Development Secretary, said that a “significant draw-down” of troops was on the way.

Final negotiations are said to be underway with the Iraqi government, with Gordon Brown expected to make an announcement before Christmas.

Iraq has been pressing for the speedy withdrawal of all foreign troops, and Barack Obama, the President-Elect, is keen to pull American forces out of the country as soon as possible.

Mr Alexander said: “We’ll continue to work closely with the government of Iraq but we will see a significant drawdown of British troops as a recognition of the progress and success that’s been enjoyed here in Basra.

“We are looking ahead to the first half of 2009 but our focus on the moment is securing the possibility that I’ve seen today which is for further jobs, further investment, further prosperity.”

The process of handing over Basra airport and airspace to the Iraqis is likely to begin within weeks, with the Americans taking over camp security.

Asked about claims by Sky News that the “end game” had been reached in Iraq, the Prime Minister insisted that there had been “no fundamental change” in British strategy since his announcement in July that there would be a “fundamental change of mission” for UK forces in Basra in the first half of 2009.

He added: “I want to be absolutely clear that there is no change in our policy.

“Our policy is to continue and to finish the work we have agreed to do in Iraq: training the Iraqi troops – we are training thousands of Iraqi troops and Iraqi policemen and women; we are pursuing a strategy to give people in Basra, the area in which we are involved, a stake in the economic future of that area and we are involved in a great deal of economic development there; and we are trying to make sure that local elections take place so that local leaders are in place.

“Once we have done these things, there will be that fundamental change of mission.”

Liam Fox, the shadow defence secretary, said: “It has been clear for some time that Britain’s operational role in Iraq is coming to an end. Our forces have made an important contribution to stability in the country.”

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Iraq Continues to Insist on Firm U.S. Troop Pullout Date

November 7, 2008 – Reporting from Baghdad — Two days after Barack Obama’s election as president, Iraqi officials continued to insist on a withdrawal date for U.S. troops regardless of conditions on the ground, and maintained their demand that American forces be subject to Iraqi legal jurisdiction in some instances.

In an interview Thursday, government spokesman Ali Dabbagh said an effort to reach a so-called status of forces agreement that would sanction the U.S. military presence in Iraq beyond 2008 would collapse if no deal is reached by month’s end. But a U.S. Embassy spokeswoman said U.S. officials had presented Iraq’s government with a “final text.”

American soldiers should be prosecuted in the Iraqi court system if they commit grave offenses outside their bases, unless they are on a joint mission with Iraqi troops, Dabbagh said. American combat troops should cease operating unilaterally by June, he said, and the status of forces agreement should specify that the vast majority of U.S. troops leave Iraq by the end of 2011.

“Iraqis would like to know and see a fixed date,” he said. “U.S. troops should be secluded to known camps. The Americans would be called whenever there is a need. Their movement would be limited.”

In August, Prime Minister Nouri Maliki demanded a firm withdrawal date. Obama has called for combat troops to be out within 16 months, but he has reserved some flexibility in his position.

The Bush administration has resisted firm withdrawal timelines and said any pullout should be subject to security conditions at the time.

U.S. officials on Thursday responded in writing to proposed amendments Iraqi Cabinet members made to a draft of the agreement after many Iraqi lawmakers expressed misgivings about the language on withdrawal dates and the types of instances under which American soldiers would be subject to Iraqi law.

U.S. officials are unlikely to cede ground on the issue of legal jurisdiction because Pentagon officials feel strongly that misconduct by soldiers ought to be handled by military prosecutors, and Iraq’s judicial system is widely perceived to be rudimentary and at times arbitrary.

U.S. and Iraqi officials did not describe the content of the response American negotiators submitted Thursday.

“We have gotten back to them with a final text,” said Susan Ziadeh, a spokeswoman for the U.S. Embassy in Baghdad.

“We’ve responded positively in order to move the process forward in a way that respects the sovereignty of both sides.”

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