Author Archives: News Sources

Irma price gouging highlights sad truth: Consumer fleecing is the new normal

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Many accused Delta, shown here over Tampa in 2014, and other carriers of price gouging ahead of Irma, but it’s just business as normal.
Drew Horne/Shutterstock.com

By Ramsi Woodcock, Georgia State University

Since Hurricane Irma put Florida in its sights, there have been thousands of reports of price gouging on everything from water to gasoline.

The most notable complaint was not, however, the one alleging a US$72 charge for a six-pack of water. Rather, it was the $3,200 reportedly asked by Delta for a ticket out of Florida.

That’s because it wasn’t actually hurricane-related price gouging. Airlines were charging similar fares to last-minute buyers two weeks ago – and have been for years – long before Irma became a threat.

The fact is that airlines have made it a routine practice to jack up prices at moments of peak demand, such as right before a flight, when Americans dealing with family or business emergencies are willing to pay almost anything to get on the next plane out of town.

By bringing desperation to so many, Hurricane Irma is revealing a sad fact about many American companies, and not just airlines: that they have come in recent years to embrace taking advantage of desperate consumers as a central part of their business models.

The practice, called dynamic pricing, is intended to ration scarce goods and services, yet, as I show in a recent paper, it primarily harms consumers by making it easier for companies to fleece them.

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North Korea threatens to sink Japan and turn U.S. to ‘ashes and darkness’

The Guardian reports: North Korea has threatened to sink Japan and said the US should be “beaten to death like a rabid dog” after the two countries spearheaded fresh UN security council sanctions in response to the regime’s recent nuclear test.

The Korea Asia-Pacific peace committee, which oversees North Korea’s relations with the outside world, described the UN security council, which passed a new round of sanctions on Monday, as a “tool of evil” in the pay of Washington, and called for it to be broken up.

It is the first time that Pyongyang has issued an explicit threat to Japan since it fired a medium-range ballistic missile over the northern Japanese island of Hokkaido at the end of last month, triggering emergency sirens and mass text alerts.

“The four islands of the [Japanese] archipelago should be sunken into the sea by the nuclear bomb of Juche,” the committee said in a statement carried by the official KCNA news agency. Juche is the ideology of self-reliance pioneered by Kim Il-sung, the country’s founder and grandfather of the current leader, Kim Jong-un.

“Japan is no longer needed to exist near us,” the committee added. [Continue reading…]

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Rice told House investigators why she unmasked senior Trump officials

CNN reports: Former national security adviser Susan Rice privately told House investigators that she unmasked the identities of senior Trump officials to understand why the crown prince of the United Arab Emirates was in New York late last year, multiple sources told CNN.

The New York meeting preceded a separate effort by the UAE to facilitate a back-channel communication between Russia and the incoming Trump White House.

The crown prince, Sheikh Mohammed bin Zayed al-Nahyan, arrived in New York last December in the transition period before Trump was sworn into office for a meeting with several top Trump officials, including Michael Flynn, the president’s son-in-law, Jared Kushner, and his top strategist Steve Bannon, sources said.

The Obama administration felt misled by the United Arab Emirates, which had failed to mention that Zayed was coming to the United States even though it’s customary for foreign dignitaries to notify the US government about their travels, according to several sources familiar with the matter. Rice, who served as then-President Obama’s national security adviser in his second term, told the House Intelligence Committee last week that she requested the names of the Americans mentioned in the classified report be revealed internally, a practice officials in both parties say is common.

Rice’s previously undisclosed revelation in a classified setting shines new light on a practice that had come under sharp criticism from the committee chairman, California Rep. Devin Nunes, and President Donald Trump, who previously accused Rice of committing a crime.

But her explanation appears to have satisfied some influential Republicans on the committee, undercutting both Nunes and Trump and raising new questions about whether any Trump associates tried to arrange back-channel discussions with the Russians. [Continue reading…]

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Who helped the Russians?

David Remnick writes: I asked Clinton if she thought Trump or his campaign colluded with the Russians. “I don’t want to overstate what we already know publicly, but I think the compilation of coincidence adds up to something more than public support,” she said, referring to Trump’s refusal to criticize Putin (“Why should I tell Putin what to do?”) and his encouragement of Julian Assange (“I love WikiLeaks!”).

She went on, “The latest disclosure by Facebook about the targeting of attack ads, negative stories, dovetails with my concern that there had to be some information provided to the Russians by someone as to how best to weaponize the information that they stole, first from the Democratic Committee, then from John Podesta. And the refusal of the Trump Administration officials, both current and former, to admit to their involvements with Russians raises a lot of unanswered questions.” Putin’s motives, she said, went well beyond destabilizing a particular campaign. “Putin wants to undermine democracy, to undermine the Atlantic alliance, to undermine the E.U., to undermine nato, and to resurrect Russian influence as much as possible beyond the borders,” she said. “So the stakes are huge here.”

If, as Clinton told me, the Russians had deployed a “new form of warfare” to upend American democratic processes, what should President Obama have done in the closing act of the campaign? At a summit in China, Obama told Putin to back off from any election tampering, and he talked about the issue at a press conference. But he did not raise the stakes. Figuring that Clinton would win, Obama was wary of being seen as tipping the election to her and confirming Trump’s constant assertions that the vote was rigged against him. When the C.I.A. first told Obama, in August, that the Russians had been meddling in the Presidential race, the agency shared the information with the Gang of Eight—the congressional leadership and the chairs and the ranking members of the intelligence committees. The Administration asked for a bipartisan statement of warning. Mitch McConnell, the Senate Majority Leader, adamantly refused, muffling for weeks any sense of national alarm.

“I feel we sort of choked,” one senior Obama Administration official told the Washington Post. Another former Administration official said that national-security people were feeling, “Wow, did we mishandle this.” Clinton, in her book, gingerly “wonders” what the effect might have been had Obama gone on national television in the fall of 2016 “warning that our democracy was under attack.” I asked her whether Obama had failed—whether the issue should have been treated less as a narrowcasted political problem and more as a grave national-security threat.

“Well, I think that I’m very understanding of the position he found himself in,” she said. “Because I’ve been in that Situation Room, I know how hard these calls can be. And I believe that they struggled with this, and they were facing some pretty difficult headwinds.” She was less restrained in her description of the Senate Majority Leader’s behavior. “Mitch McConnell, in what I think of as a not only unpatriotic but despicable act of partisan politics, made it clear that if the Obama Administration spoke publicly about what they knew, he would accuse them of partisan politics, of trying to tip the balance toward me,” she said. “McConnell basically threatened the White House, and I know that was on the President’s mind. It was a predicament for him.” She also lambasted James Comey, the former F.B.I. director, who “refused to publicly acknowledge that there was an investigation, and, with the height of irony, said, ‘Well, you can’t do that so close to the election.’ ” (Comey told the Senate Judiciary Committee that the investigation had not progressed to the point where disclosure would have been appropriate.)

All the same, I asked, did President Obama blow it?

Clinton paused, and spoke very carefully: “I would have, in retrospect now, wished that he had said something, because I think the American people deserved to know.”

In “What Happened,” Clinton, by way of demanding national resolve against a Russian threat, quotes a maxim attributed to Vladimir Lenin: “You take a bayonet and you push. If you hit mush, you keep going; if you hit steel, you stop.”

“Were we mush?” I asked about the Obama Administration’s response.

Now she did not hesitate. “I think we were mushy,” she said. “Partly because we couldn’t believe it. Richard Clarke, who is one of our nation’s experts on terrorism, has written a book about Cassandras,” unheeded predictors of calamity. “And there was a collective Cassandra out there—my campaign was part of that—saying, ‘The Russians are in our electoral system, the Russians are weaponizing information, look at it!’ And everybody in the press basically thought we were overstating, exaggerating, making it up. And Comey wouldn’t confirm an investigation, so there was nothing to hold on to. And I think that the point Clarke makes is when you have an initial occurrence that has never happened before, some people might see it and try to warn about it, but most people would find it unlikely, impossible. And what I fear is we still haven’t gotten to the bottom of what the Russians did.” [Continue reading…]

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Trump administration launches broad new anti-leak program

BuzzFeed reports: The top US national security official has directed government departments and agencies to warn employees across the entire federal government next week about the dangers and consequences of leaking even unclassified information.

The Trump administration has already promised an aggressive crackdown on anyone who leaks classified information. The latest move is a dramatic step that could greatly expand what type of leaks are under scrutiny and who will be scrutinized.

In the memo about leaks that was subsequently obtained by BuzzFeed News, National Security Adviser H.R. McMaster details a request that “every Federal Government department and agency” hold a one-hour training next week on “unauthorized disclosures” — of classified and certain unclassified information. [Continue reading…]

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Judge considers defying Trump over Arpaio pardon

John Banzhaf writes: Although President Donald Trump has issued a full pardon to former Arizona sheriff Joe Arpaio, and his lawyers have filed a motion seeking to have his conviction thrown out as a result, District Court Judge Susan Bolton has so far refused to grant the motion, and is in fact considering requests before her that she deny it.

In papers lodged with her last week, it was argued that “The president can’t use the pardon power to immunize lawless officials from consequences for violating people’s constitutional rights.” This contrasts with his lawyers’ arguments that “The president’s pardon moots the case, and it warrants an automatic vacatur of all opinions, judgments, and verdicts related to the criminal charge.”

The Justice Department supports his position, telling the judge on Monday that “the government agrees that the Court should vacate all orders and dismiss the case as moot.”

But although many commentators have argued that the President’s pardoning power is “unlimited,” and some have even worried that he might issue blanket pardons to all those being investigated by Special Counsel Robert Mueller to frustrate the investigation, she is reviewing contrary legal arguments.

These counter arguments contend that the president’s constitutional power to issue pardons “is limited by later-enacted amendments, starting with the Bill of Rights. For example, were a president to announce that he planned to pardon all white defendants convicted of a certain crime but not all black defendants, that would conflict with the Fourteenth Amendment’s Equal Protection Clause.”

Similarly, they argue, Trump cannot use pardons to undercut a court’s power to protect people from being denied their Due Process rights by immunizing otherwise unlawful acts like Arpaio’s. It contends that “the president cannot be allowed to weaponize the pardon power to circumvent the judiciary’s ability to enforce and protect constitutional rights.” [Continue reading…]

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Trump FEMA nominee withdraws after NBC questions on falsified records

NBC News reports: President Donald Trump’s nominee for the No. 2 spot at the Federal Emergency Management Agency withdrew from consideration on Wednesday after NBC News raised questions about a federal investigation that found he had falsified government travel and timekeeping records when he served in the Bush administration in 2005.

“Given the distraction this will cause the Agency in a time when they cannot afford to lose focus, I have withdrawn from my nomination,” the former nominee, Daniel A. Craig, said in an email to NBC News.

The investigation, jointly conducted by the FBI and the Department of Homeland Security’s Office of Inspector General, concluded there was insufficient evidence that Craig had violated conflict-of-interest laws in the awarding of huge FEMA contracts in the aftermath of Hurricane Katrina, according to a 2011 report that has never been made public but which was reviewed by NBC News. [Continue reading…]

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Treasury Secretary Mnuchin requested $25,000 per hour government jet for European honeymoon

ABC News reports: Secretary Steven Mnuchin requested use of a government jet to take him and his wife on their honeymoon in Scotland, France and Italy earlier this summer, sparking an “inquiry” by the Treasury Department’s Office of Inspector General, sources tell ABC News.

Officials familiar with the matter say the highly unusual ask for a U.S. Air Force jet, which according to an Air Force spokesman could cost roughly $25,000 per hour to operate, was put in writing by the secretary’s office but eventually deemed unnecessary after further consideration of by Treasury Department officials.

Senator Ron Wyden (D-Oregon), the top Democrat on the Senate Finance Committee, said in an interview with ABC News that Mnuchin’s request for a government jet on his honeymoon defies common sense. [Continue reading…]

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Mueller probe has ‘red-hot’ focus on social media, officials say

Bloomberg reports: Russia’s effort to influence U.S. voters through Facebook and other social media is a “red-hot” focus of special counsel Robert Mueller’s investigation into the 2016 election and possible links to President Donald Trump’s associates, according to U.S. officials familiar with the matter.

Mueller’s team of prosecutors and FBI agents is zeroing in on how Russia spread fake and damaging information through social media and is seeking additional evidence from companies like Facebook and Twitter about what happened on their networks, said one of the officials, who asked not to be identified discussing the ongoing investigation.

The ability of foreign nations to use social media to manipulate and influence elections and policy is increasingly seen as the soft underbelly of international espionage, another official said, because it doesn’t involve the theft of state secrets and the U.S. doesn’t have a ready defense to prevent such attacks.

Agencies including the Office of the Director of National Intelligence and the Federal Bureau of Investigation are now examining what could be done to prevent similar interference and espionage in future elections, starting with the 2018 midterm congressional vote, the official said. At the same time, Russia is ramping up its hacking operations, Director of National Intelligence Dan Coats said. [Continue reading…]

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Flynn promoted nuclear-plant project while in White House

The Wall Street Journal reports: As President Donald Trump’s national security adviser, retired Lt. Gen. Mike Flynn promoted a controversial private-sector nuclear power plan in the Middle East that had once involved Russian companies, according to former security-council staffers and others familiar with the effort.

While working at the White House, Mr. Flynn advocated for a group of former senior U.S. military officers with whom he had worked while in the private sector. The project, which the former military officers were helping promote on behalf of several U.S. companies, envisions building and operating dozens of nuclear plants in Saudi Arabia and across the Middle East, the people familiar with it said.

The sprawling construction project was valued at hundreds of billions of dollars and described as a Marshall Plan for the region, according to the people familiar with it. Mr. Flynn, as a private citizen before entering the White House, had advised U.S. companies that aimed to provide security for the project.

White House disclosure forms indicate that Mr. Flynn’s year-and-a-half work on the project ended in December 2016, but Mr. Flynn in fact remained involved in the project once he joined the Trump administration in January, discussing the plan and directing his National Security Council staff to meet with the companies involved, the former staffers said. [Continue reading…]

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Mike Flynn’s son is subject of federal Russia probe

NBC News reports: Michael G. Flynn, the son of President Donald Trump’s former national security adviser, is a subject of the federal investigation into Russian meddling in the presidential election and possible collusion between Moscow and the Trump campaign, according to four current and former government officials.

The inquiry into Flynn is focused at least in part on his work with his father’s lobbying firm, Flynn Intel Group, three of the officials said. It’s unclear when the focus on Flynn began. [Continue reading…]

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Justice Department declines Senate request to interview FBI officials over Comey firing

CNN reports: The Justice Department is preventing Senate investigators from interviewing two top FBI officials who could provide first-hand testimony over the firing of former FBI Director James Comey, the latest sign that Special Counsel Robert Mueller could be investigating the circumstances around the firing, officials tell CNN.

The previously undisclosed turf war comes as the Senate judiciary committee has not yet given assurances to the special counsel’s office that it could have unfettered access to the transcript of the interview it conducted last week with the President’s eldest son, Donald Trump Jr., saying that the full Senate must first authorize the release of the information to Mueller’s team.

What appears to have irked the panel in particular is the refusal of the Justice Department to cooperate with a key part of its investigation. The leaders of the panel, Senate Judiciary Chairman Chuck Grassley and the ranking Democrat Dianne Feinstein, have repeatedly asked two senior FBI officials — Carl Ghattas and James Rybicki — to sit down for a transcribed interview to discuss the Comey firing as part of its inquiry into any improper interference with the FBI.

But the Justice Department has declined, citing “the appointment of Robert S. Mueller III to serve” as special counsel about Russian interference in the 2016 elections and “related matters.” [Continue reading…]

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U.S. bans use of Kaspersky software in federal agencies amid concerns of Russian espionage

The Washington Post reports: The U.S. government on Wednesday moved to ban the use of a Russian brand of security software by federal agencies amid concerns the company has ties to state-sponsored cyberespionage activities.

In a binding directive, acting homeland security secretary Elaine Duke ordered that federal civilian agencies identify Kaspersky Lab software on their networks. After 90 days, unless otherwise directed, they must remove the software, on the grounds that the company has connections to the Russian government and its software poses a security risk.

The Department of Homeland Security “is concerned about the ties between certain Kaspersky officials and Russian intelligence and other government agencies, and requirements under Russian law that allow Russian intelligence agencies to request or compel assistance from Kaspersky and to intercept communications transiting Russian networks,” the department said in a statement. “The risk that the Russian government, whether acting on its own or in collaboration with Kaspersky, could capitalize on access provided by Kaspersky products to compromise federal information and information systems directly implicates U.S. national security.” [Continue reading…]

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It’s time to talk to North Korea

Fred Kaplan writes: The complaint about the U.N. Security Council’s new sanctions against North Korea is that they aren’t strict enough to force Kim Jong-un to dismantle his nuclear program. But here’s the thing: Nothing is going to force him to do that.

It’s time to recognize that North Korea is a nuclear power—small and not fully tested but a nuclear power nonetheless—and that, as with other nuclear powers, the most effective ways to deal with it are through deterrence and diplomacy. Any other course is the stuff of delusions.

There are several reasons why Kim would be loath to give up his nukes. First, they are all he has. For a tiny, impoverished country amid several large, rich ones (“a shrimp among whales,” as Kim Il-sung, the country’s founder and Kim Jong-un’s grandfather, put it), nukes can stave off a wide range of threats. [Continue reading…]

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ISIS is near defeat in Iraq. Now comes the hard part

The Washington Post reports: The collapse of the Islamic State in its most important Iraqi strongholds has brought a rare moment of hope for a country mired in war for most of the past four decades.

It is also a moment of peril, as Iraq emerges from the fight against the militants only to be confronted with the same problems that fueled their spectacular rise in 2014.

Old disputes between Sunnis, Shiites and Kurds over territory, resources and power already are resurfacing as the victors of the battles compete to control liberated areas or jostle for political advantage in the post-Islamic State landscape.

They now are compounded by the mammoth task of rebuilding the towns and cities destroyed by the fighting, returning millions of displaced people to their homes and reconciling the communities that once welcomed the Islamic State’s brutal rule as preferable to their own government’s neglect and abuse.

Failure risks a repeat of the cycle of grievance and insurgency that fueled the original Iraqi insurgency in 2003, and its reincarnation in the form of the Islamic State after 2011, Iraqis and analysts say.

But it is a vast and potentially insurmountable challenge, laid bare on the traumatized streets of Mosul. In the relatively unscathed eastern part of the city, life has bounced back. Traffic clogs the streets, music blares from markets and stores are piled high with consumer goods that were banned or hard to find under Islamic State rule, such as cellphones, air conditioners and satellite dishes. [Continue reading…]

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Arms control experts urge Trump to honor Iran nuclear deal

The New York Times reports: Alarmed that President Trump may soon take steps that could unravel the international nuclear agreement with Iran, more than 80 disarmament experts urged him on Wednesday to reconsider and said the accord was working.

In a joint statement, the experts said the 2015 agreement, negotiated by the Obama administration and the governments of Britain, China, France, Germany and Russia, was a “net plus for international nuclear nonproliferation efforts.”

Because of the monitoring powers contained in the agreement, they said, Iran’s capability to produce nuclear weapons had been sharply reduced. They also said the agreement made it “very likely that any possible future effort by Iran to pursue nuclear weapons, even a clandestine program, would be detected promptly.”

Mr. Trump has repeatedly assailed the agreement — a signature achievement of his predecessor — describing it as “a terrible deal” and a giveaway to Iran. [Continue reading…]

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The bad new politics of big tech

Ben Smith writes: The blinding rise of Donald Trump over the past year has masked another major trend in American politics: the palpable, and perhaps permanent, turn against the tech industry. The new corporate leviathans that used to be seen as bright new avatars of American innovation are increasingly portrayed as sinister new centers of unaccountable power, a transformation likely to have major consequences for the industry and for American politics.

That turn has accelerated in recent days: Steve Bannon and Bernie Sanders both want big tech treated as, in Bannon’s words in Hong Kong this week, “public utilities.” Tucker Carlson and Franklin Foer have found common ground. Even the group No Labels, an exquisitely poll-tested effort to create a safe new center, is on board. Rupert Murdoch, never shy to use his media power to advance his commercial interests, is hard at work.

“Anti-trust is back, baby,” Yelp’s policy chief, Luther Lowe, DM’d me after Fox News gave him several minutes to make the antitrust case against Yelp’s giant rival Google to its audience of millions. [Continue reading…]

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Will Donald Trump destroy the presidency?

Jack Goldsmith writes: Donald Trump is testing the institution of the presidency unlike any of his 43 predecessors. We have never had a president so ill-informed about the nature of his office, so openly mendacious, so self-destructive, or so brazen in his abusive attacks on the courts, the press, Congress (including members of his own party), and even senior officials within his own administration. Trump is a Frankenstein’s monster of past presidents’ worst attributes: Andrew Jackson’s rage; Millard Fillmore’s bigotry; James Buchanan’s incompetence and spite; Theodore Roosevelt’s self-aggrandizement; Richard Nixon’s paranoia, insecurity, and indifference to law; and Bill Clinton’s lack of self-control and reflexive dishonesty.

“Enlightened statesmen will not always be at the helm,” James Madison wrote in one of the Federalist Papers during the debates over the ratification of the Constitution. He was right, but he never could have imagined Donald Trump.

At this point in the singular Trump presidency, we can begin to assess its impact on American democracy. The news thus far is not all bad. The Constitution’s checks and balances have largely stopped Trump from breaking the law. And while he has hurt his own administration, his successors likely won’t repeat his self-destructive antics. The prognosis for the rest of our democratic culture is grimmer, however. Trump’s bizarre behavior has coarsened politics and induced harmful norm-breaking by the institutions he has attacked. These changes will be harder to undo.

Trump, in short, is wielding a Soprano touch on American institutions. “I’m fucking King Midas in reverse here,” Tony Soprano once told his therapist. “Everything I touch turns to shit.” [Continue reading…]

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