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How The Fed Helps The US Spy On Foreign Governments

How The Fed Helps The US Spy On Foreign Governments

It’s widely known that the Federal Reserve has been tasked by Congress with a “dual mandate” to maintain stable consumer-goods prices, low unemployment and – oh yes – buoyant equity prices. However, as Reuters revealed on Monday, the central bank has another legally binding obligation that might upset some of its clients: Helping the US intelligence community spy on foreign governments.

Some 250 foreign central banks and governments keep $3.3 trillion of their assets at the Federal Reserve Bank of New York. It is this little-known custodial role, which we have however highlighted frequently to show the true change in foreign holdings of US paper, that allows US intelligence agencies to leverage information about activity in certain accounts.

Specifically, senior officials from the Treasury and other government departments have turned to these otherwise confidential accounts several times a year to analyze the asset holdings of the central banks of Russia, China, Iraq, Turkey, Yemen, Libya and others, according to more than a dozen current and former senior Fed and Treasury officials who spoke with Reuters.

It was not immediately clear how the “confidential” information differs from the public, except that it likely breaks down the holdings by source nation. The Reuters report surfaced at a time when the value of assets held by the central bank is rapidly expanding as foreign reserve managers scoop up US Treasurys at an aggressive clip, something we first highlighted in February when concerns emerged that foreigners were selling based on data from the delayed Treasury International Capital report.

The terms of the Fed’s custodial agreements stipulate that it can share information with US government entities on a “need to know” basis. Ironically, the service was advertised in a 2015 slide presentation as “safe and confidential,” according to Reuters. However, the “need to know” standard is easily circumvented as the central bank has conveniently avoided creating a working definition of “need to know.”

…click on the above link to read the rest of the article…

Report: British Intelligence Agencies, In Addition to Six Other Nations, Were All Spying on Trump

Report: British Intelligence Agencies, In Addition to Six Other Nations, Were All Spying on Trump

About a month ago, Fox suspended Judge Nap for suggesting British intelligence had spied on Donald Trump. The media went hysterical, saying the good judge was filled with UFO styled conspiracy theories.

Here was his claim.

A spokesman for the GCHQ at the time called the claims ‘nonsense’, proclaiming “They are utterly ridiculous and should be ignored.”

Lo and behold, the Guardian is out with an exclusive tonight — rebuking the GCHQ denial — confirming that Obama had received information from the British spy agency, possibly to avoid being detected by people investigating FISA warrants. In addition to Britain’s GCHQ, Mi6 was also involved, and 4 other nations —  as part of the intelligence gathering apparatus called SIGINT — who then ferried their findings to Obama. The spying nations were Germany, Estonia, Poland and Australia.

Another guardian source said both France and the Netherlands were possible contributors to the Trump spying ring too.

CNN reporting:

The GCHQ became aware of  ‘suspicious interactions’ in late 2015.

Over the next six months, until summer 2016, a number of western agencies shared further information on contacts between Trump’s inner circle and Russians, sources said.

It is understood that GCHQ was at no point carrying out a targeted operation against Trump or his team or proactively seeking information. The alleged conversations were picked up by chance as part of routine surveillance of Russian intelligence assets. Over several months, different agencies targeting the same people began to see a pattern of connections that were flagged to intelligence officials in the US.

In typical spin, the Guardian’s source posited the notion that something improper had taken place between the Russians and Trump.

…click on the above link to read the rest of the article…

The Surveillance State Did Not Disappear With The Trump Victory: “It Is Still Lurking And Completely Intact”

The Surveillance State Did Not Disappear With The Trump Victory: “It Is Still Lurking And Completely Intact”

america-surveillance-state

One of the things Donald Trump has really done correctly is to assess his future arena in the areas of intelligence-gathering and operational security.  Trump wants to return to a “courier” method of transmitting sensitive information and classified documents for the purpose of reducing the amount of material that can be hacked or stolen.  There is a subtlety about this for a caveat, in case the compliment has bloomed flowers in your thoughts: the NSA $50 billion facility for collection and storage of data in Utah won’t be shutting down anytime soon.

As Snowden’s exposes clearly pointed out, the government has clearly followed Petraeus’ glowing “internet of things” yellow brick road to form an integrated, interconnected surveillance state.  All CCTV (closed circuit television) systems, all merchants with cameras, all law enforcement cameras…all of the camera surveillance systems everywhere are either tied into data collection immediately or can be accessed for use at a later time.

The latest “Jason Bourne” movie clearly illustrates how the government can utilize devices such as cellular telephones (especially the ones with cameras) to track movements, record conversations, and be a “piggyback” to relay information to a nearby computer or a camera.  This isn’t the future: this is now.

There is an older piece written by Michael Snyder in June of 2013 entitled 27 Edward Snowden Quotes About U.S. Government Spying That Should Send a Chill Up Your Spine.  The information in this article is directly from Edward Snowden that revealed exactly what the government has been doing regarding their total surveillance program.  The surveillance did not occur overnight, and in the manner of the “frog in the cold-water kettle” by stretching out the time for putting it all into place, the stultified public’s focus was either diverted or bypassed entirely.

…click on the above link to read the rest of the article…

China Slams US Hacking Accusation As “Groundless Smear Campaign”, Demands Washington Explain Its Own Spying

China Slams US Hacking Accusation As “Groundless Smear Campaign”, Demands Washington Explain Its Own Spying

While Russia continues to mostly mock and ridicule, and generally take in good humor, the constant allegations by the Obama administration that it “hacked the election”, without actually hacking the election – as in actually rigging or changing the votes – but merely exposing the corruption of the DNC and the cronyism of the Clinton Family Foundation, even if so far the highly confident US “intelligence agencies” have yet to demonstrate a shred of proof substantiating such allegations, China’s reaction to a similar accusation has demonstrated far less sense of humor.

That may explain why Beijing quickly slammed Washington’s claims it engaged in mass spying, and demanded an explanation from the US about its own global spying activities, after a US report accused China of using two Chinese hotels as spy centres, an allegation Beijing dubbed a “groundless” smear attempt.

Last Wednesday, the Washington Times accused the 4PLA, a unit attached to the Chinese Defence Ministry, of using the Jintang and Seasons hotels in the capital Beijing to conduct espionage. As evidence publication cited an open-source intelligence dossier produced by the Army’s Asian Studies Detachment, as the source of its report. The document does not explain why and how the hotels were allegedly used by the Chinese for hacking.

In any case China was displeased, and on Friday the Ministry of National Defense angrily denied that hotels in the Haidian District of Beijing served as a base for any cyber-espionage operations.

“The Chinese military has never supported any hacking activities, and the Chinese government has always been firmly opposed to and cracking down on relevant criminal activities in accordance with law, including network attacks,” China’s Defence Ministry said.

“Relevant accusation is totally groundless and a bad act of smearing China,” the statement added, calling on Washington to stop making “groundless accusation against China.”

…click on the above link to read the rest of the article…

 

Republican Senators Use Orlando Shooting to Push for Increased Government Spying Powers

Republican Senators Use Orlando Shooting to Push for Increased Government Spying Powers

“This production, which we believe is just the tip of the iceberg, is a window into the nationwide scope of the FBI’s surveillance, monitoring, and reporting on peaceful protestors organizing with the Occupy movement.

FBI documents just obtained by the Partnership for Civil Justice Fund (PCJF) pursuant to the PCJF’s Freedom of Information Act demands reveal that from its inception, the FBI treated the Occupy movement as a potential criminal and terrorist threat even though the agency acknowledges in documents that organizers explicitly called for peaceful protest and did “not condone the use of violence” at occupy protests.

– From the post: It’s Official: The FBI Classifies Peaceful American Protestors as “Terrorists”

Well we knew this was coming, and it’s no surprise to see Mitch McConnell leading the charge. A man who never saw a 4th Amendment violating piece of legislation he didn’t like.

Reuters reports:

U.S. Senate Majority Leader Mitch McConnell set up a vote late on Monday to expand the Federal Bureau of Investigation’s authority to use a secretive surveillance order without a warrant to include email metadata and some browsing history information.

The move, made via an amendment to a criminal justice appropriations bill, is an effort by Senate Republicans to respond to last week’s mass shooting in an Orlando nightclub after a series of measures to restrict guns offered by both parties failed on Monday.

“In the wake of the tragic massacre in Orlando, it is important our law enforcement have the tools they need to conduct counterterrorism investigations,” Senator John McCain, an Arizona Republican and sponsor of the amendment, said in a statement.

The bill is also supported by Republican Senators John Cornyn, Jeff Sessions and Richard Burr, who chairs the Senate Intelligence Committee.

…click on the above link to read the rest of the article…

Cops, spies and journalists: Top Mountie Bob Paulson speaks out

Cops, spies and journalists: Top Mountie Bob Paulson speaks out

Spying by officers was not approved, RCMP commissioner says – so officers kept asking

In a broad and candid statement to CBC News, RCMP Commissioner Bob Paulson explains why

In a broad and candid statement to CBC News, RCMP Commissioner Bob Paulson explains why (Sean Kilpatrick/Canadian Press)

Terry Milewski has worked in fifty countries during 38 years with the CBC. He was the CBC’s first Middle East Bureau Chief, spent eight years in Washington during the Reagan, Bush and Clinton administrations and was based in Vancouver for fourteen years. He now covers politics as Senior Correspondent in Ottawa.

The RCMP commissioner decided to handle this one himself — and with good reason. As Canada’s top cop, Bob Paulson knew it wasn’t going to look good, and that he, personally, had been in the thick of it.

So, instead of punting the question to a communications officer, the head of the RCMP sat down on Tuesday night and tapped out his own version of a tangled story about illicit spying by his officers.

Yes, he said, the Mounties put two journalists under surveillance. And no, they did not have his approval — which was required. Three times, he’d turned them down. But they’d already done it anyway.

Who’s the leaker?

The tale begins with disclosures made in June of 2007 by Joel-Denis Bellavance, a highly-regarded reporter for the Montreal newspaper, La Presse. These indicated that CSIS had intelligence — or claimed to have it — about a bomb plot involving Adil Charkaoui, a suspected Al Qaeda sleeper agent.

Gilles Toupin and Joel-Denis Bellavance

A briefing note prepared late last year reveals that RCMP officers conducted unauthorized physical surveillance of journalists Gilles Toupin, left, and Joel-Denis Bellavance in an attempt to discover the source of a leaked CSIS document. (Twitter photos)

One question bothered CSIS: how did Bellavance get that secret document?

…click on the above link to read the rest of the article…

Mass surveillance programs futile in fighting terror – Snowden

Mass surveillance programs futile in fighting terror – Snowden

 Edward Snowden © AutoTracking / YouTube
Bulk data gathering programs used by US intelligence have no effect in combating terrorism and have failed to prevent any attacks in their 10 years of operation, whistleblower and former NSA contactor Edward Snowden, claims in a recent interview.

In the wake of the revelations of mass surveillance the [US] president [Barack Obama] appointed two independent commissions to review the efficiency of these [surveillance] programs, what they really did and what effect they had in combating terrorism. [The commissions comprised] the highest priests of these programs, they found these programs had never stopped a single terrorist attack and never made a concrete difference in a terrorist investigation,” Snowden told Spanish TV channel .

The whistleblower went on saying, that “they [the NSA, CIA] violated the constitution and the rights of 330 million Americans for 10 years. We have to ask ourselves: was it ever worth it?”He also stated that despite being justified by preventing terrorist attacks, surveillance programs are more often used for completely different purposes.

It was diplomatic manipulation, economic spying and social control. It was about power, and there is no doubt that mass surveillance increases the power of the government.

Read more

Former U.S. National Security Agency contractor Edward Snowden © Vincent Kessler

Snowden stressed that bulk data collection is “more aggressive and invasive today than it was before. Law enforcement and intelligence structures do not any longer bother to pick up a suspect and hack his cell phone, they cut in into all lines and communications […] at the heart of the society.

…click on the above link to read the rest of the article…

One Year after Snowden Warning, How Canada Has Changed

One Year after Snowden Warning, How Canada Has Changed

EdSnowdenCurtain_610px.jpg

Whistleblower Edward Snowden’s sold-out talk on the power, promise and peril of big data hits a Queen Elizabeth Theatre screen April 5 in Vancouver.

A year ago this month, world-famous whistleblower Edward Snowden issued a warning to Canada. Via livestream, he told us our country has one of the weakest spy oversight frameworks among western intelligence agencies around the world.

That observation, years after his first leaks shook the western state security establishment, stoked fears that the Harper government’s anti-terrorism law would further erode Canadians’ digital privacy as the controversial Bill C-51 pressed through Parliament. The repercussions of Snowden’s data collection findings are still being felt as Canada’s new government revisits flimsy oversight provisions.

Meanwhile, journalists have been covering security issues with renewed vigilance, and civil liberties organizations have found new support from the public. Corporations, embarrassed by revelations that they co-operated with security agencies to sell out their customers’ privacy, have tried to rebuild their reputations with public statements and new privacy measures.

Simon Fraser University communications professor Catherine Murray has studied these shifts since Snowden’s warning to Canada, and sees big data as an opportunity for journalists and civil liberties organizations to push back against spy powers. Her talk on mobilizing data in democratic discourse is part of the same lecture series that brings Snowden via web-link to a sold-out Queen Elizabeth Theatre crowd in Vancouver April 5.

Ahead of these speaking events, The Tyee asked Murray about what shape spy oversight and privacy reform might take in Canada, and how journalists’ treatment of security has changed since Snowden’s historic revelations.

What did Edward Snowden’s leaks in 2013 reveal about Canadian spying activity?

…click on the above link to read the rest of the article…

New transatlantic data transfer deal sealed with ‘written assurances’ of US spying limitations

New transatlantic data transfer deal sealed with ‘written assurances’ of US spying limitations

© Sigtryggur Ari
The US and the EU have agreed on new rules for sharing personal data across the Atlantic that will allegedly better protect Europeans’ privacy from US intelligence agencies after the previous Safe Harbour mechanism was deemed inadequate.

“We have agreed with our US partners a new framework that will ensure the right checks and balances for our citizens,” said digital commissioner Andrus Ansip at a press conference in Strasbourg. The vital deal, called the ‘Privacy Shield’ was reached months after the so-called Safe Harbour agreement was annulled by the European Court of Justice (ECJ) in October last year.

The new “Privacy Shield”, the EU Commission believes, abides by the ECJ requirements to ensure stronger obligations that American companies, such as Facebook and Google, protect the personal data of Europeans. The new framework is expected to be in place in three months.

“The US side has clarified that they do not carry out indiscriminate mass surveillance of Europeans,” said Ansip, claiming that the US intelligence activities underwent “substantial internal reviews.” Furthermore, the American side has provided written assurances ruling out indiscriminate mass surveillance of personal data.

“We have for the first time received detailed written assurances from the United States on the safeguards and limitations applicable to US surveillance programs,” noted Ansip.

According to justice commissioner Vera Jourova, written assurances would include guarantees from the office of the director of national intelligence in the White House.

…click on the above link to read the rest of the article…

Spying on Congress and Israel: NSA Cheerleaders Discover Value of Privacy Only When Their Own Is Violated

The Wall Street Journal reported yesterday that the NSA under President Obama targeted Israeli Prime Minister Benjamin Netanyahu and his top aides for surveillance. In the process, the agency ended up eavesdropping on “the contents of some of their private conversations with U.S. lawmakers and American-Jewish groups” about how to sabotage the Iran Deal. All sorts of people who spent many years cheering for and defending the NSA and its programs of mass surveillance are suddenly indignant now that they know the eavesdropping included them and their American and Israeli friends rather than just ordinary people.

The long-time GOP chairman of the House Intelligence Committee and unyielding NSA defender Pete Hoekstra last night was truly indignant to learn of this surveillance:

In January 2014, I debated Rep. Hoekstra about NSA spying and he could not have been more mocking and dismissive of the privacy concerns I was invoking. “Spying is a matter of fact,” he scoffed. As Andrew Krietz, the journalist who covered that debate, reported, Hoekstra “laughs at foreign governments who are shocked they’ve been spied on because they, too, gather information” — referring to anger from German and Brazilian leaders. As TechDirt noted, “Hoekstra attacked a bill called the RESTORE Act, that would have granted a tiny bit more oversight over situations where (you guessed it) the NSA was collecting information on Americans.”

But all that, of course, was before Hoekstra knew that he and his Israeli friends were swept up in the spying of which he was so fond.

…click on the above link to read the rest of the article…

In Latest NSA Spying Scandal, World Learns Obama Lied Again; Congress Furious it Was Spied On

In Latest NSA Spying Scandal, World Learns Obama Lied Again; Congress Furious it Was Spied On

In January 2014, during the scandalous aftermath of Edward Snowden’s NSA snooping revelations, one which revealed the US had been spying on its closest allies for years, Obama banned U.S. eavesdropping on leaders of close friends and allies and promised he would begin reining in the vast collection of Americans’ phone data in a series of limited reforms.

Below are the key highlights from his January 17, 2014 speech:

Our capabilities help protect not only our nation, but our friends and our allies, as well.  But our efforts will only be effective if ordinary citizens in other countries have confidence that the United States respects their privacy, too.  And the leaders of our close friends and allies deserve to know that if I want to know what they think about an issue, I’ll pick up the phone and call them, rather than turning to surveillance.  In other words, just as we balance security and privacy at home, our global leadership demands that we balance our security requirements against our need to maintain the trust and cooperation among people and leaders around the world.

The bottom line is that people around the world, regardless of their nationality, should know that the United States is not spying on ordinary people who don’t threaten our national security, and that we take their privacy concerns into account in our policies and procedures.  This applies to foreign leaders as well.

The president lied, and the privacy concerns of “people around the world” have clearly never once been taken into account in Obama’s policies and procedures.

Just three days prior, on January 14 2014, Vermont Senator and current Democratic presidential candidate, Bernie Sanders had written an email to then NSA Chief Keith Alexander asking if the NSA has or is currently spying “on members of Congress or other American elected officials.” 

…click on the above link to read the rest of the article…

CISA: “Just Another Example Of Corruption”

CISA: “Just Another Example Of Corruption”

And – just like with previous spying laws – the government has a secret interpretation of CISA which will make it even worse.

So why was the bill passed?

As the American public is starting to learn  – and politicians from both side of the aisle admit – corruption has thoroughly destroyed America.

The highest-level NSA whistleblower in history – William Binney – the high-level NSA executive who created the agency’s mass surveillance program for digital information, 36-year NSA veteran widely regarded as a “legend” within the agency, who served as the senior technical director within the agency, and managed thousands of NSA employees –  explains that corruption is what’s motivating mass surveillance against the American people … and it’s what’s making us vulnerable to terrorism.

Washington’s Blog asked Binney what he thought of CISA, and he said:

This is just another example of the White House, leadership (if you want to call it that) in Congress, the intelligence committees, and the intelligence agencies manipulating the system to get what they want (more money and more knowledge to control).

Clearly, CISA would not stand on it’s own; so, they had to sneak it through buried inside a massive funding bill at the end of the year.

Again, we see just another example of corruption in our government in Washington DC. They don’t have the courage or backbone to stand for what they want out in the open where there can be an honest debate like we are suppose to have in a democracy.

…click on the above link to read the rest of the article…

Stingrays: A Secret Catalogue of Gear for Spying on Your Cellphone

Stingrays: A Secret Catalogue of Gear for Spying on Your Cellphone

THE INTERCEPT HAS OBTAINED a secret, internal U.S. government catalogue of dozens of cellphone surveillance devices used by the military and by intelligence agencies. The document, thick with previously undisclosed information, also offers rare insight into the spying capabilities of federal law enforcement and local police inside the United States.

The catalogue includes details on the Stingray, a well-known brand of surveillance gear, as well as Boeing “dirt boxes” and dozens of more obscure devices that can be mounted on vehicles, drones, and piloted aircraft. Some are designed to be used at static locations, while others can be discreetly carried by an individual. They have names like Cyberhawk, Yellowstone, Blackfin, Maximus, Cyclone, and Spartacus. Within the catalogue, the NSA is listed as the vendor of one device, while another was developed for use by the CIA, and another was developed for a special forces requirement. Nearly a third of the entries focus on equipment that seems to have never been described in public before.

The Intercept obtained the catalogue from a source within the intelligence community concerned about the militarization of domestic law enforcement. (The original is here.)

A few of the devices can house a “target list” of as many as 10,000 unique phone identifiers. Most can be used to geolocate people, but the documents indicate that some have more advanced capabilities, like eavesdropping on calls and spying on SMS messages. Two systems, apparently designed for use on captured phones, are touted as having the ability to extract media files, address books, and notes, and one can retrieve deleted text messages.

Above all, the catalogue represents a trove of details on surveillance devices developed for military and intelligence purposes but increasingly used by law enforcement agencies to spy on people and convict them of crimes.

…click on the above link to read the rest of the article…

 

Venezuelan President Calls NSA Spying on State Oil Company ‘Vulgar,” Orders Official Inquiry

Venezuelan President Calls NSA Spying on State Oil Company ‘Vulgar,” Orders Official Inquiry

Venezuela will conduct a “comprehensive review of relations with the United States” and submitted a formal protest over new evidence that the National Security Agency spied on state-owned oil company Petróleos de Venezuela, the country’s president announced.

President Nicolas Maduro spoke about the latest spying revelations at an event late Wednesday night. Earlier in the day, The Intercept and teleSUR jointly published reports, based on a top-secret document provided by NSA whistleblower Edward Snowden, detailing how the intelligence agency gained large-scale access to PDVSA’s internal computer network and successfully targeted top executives for electronic surveillance.

One named NSA target was Rafael Ramírez, PDVSA’s president from 2004 to 2014, now serving as Venezuela’s ambassador to the United Nations. Last month the Wall Street Journal reportedthat Ramírez has been the subject of a U.S. Justice Department investigation for alleged corruption during his time at the oil company.

Maduro called the U.S. espionage, conducted in part from its embassy in Caracas, “vulgar” and an “illegal action in light of international law.”

On Thursday, U.S. charge d’affaires in Caracas, Lee McClenny, was summoned to receive an official letter of protest from Alejandro Fleming, Venezuela’s deputy foreign minister.

In a press briefing, U.S. State Department spokesperson John Kirby declined to address the allegations directly, saying the State Department would instead “respond through diplomatic channels to the Venezuelan Government.”

Kirby added, “There’s no intent to use electronic surveillance to benefit commercial gain. That’s not changed,” echoing previous statements from President Barack Obama and Director of National Intelligence James Clapper.

After Brazilian network TV Globo revealed NSA spying on Brazil’s state-owned oil company Petrobrás in 2013, Clapper issued a statement affirming that the U.S. “collects information about economic and financial matters,” but does not use its “foreign intelligence capabilities to steal the trade secrets of foreign companies on behalf of — or give intelligence we collect to — U.S. companies to enhance their international competitiveness or increase their bottom line.”

…click on the above link to read the rest of the article…

Spy Chief’s ‘Unusual’ Contact With Military Official Raises Concerns About Intelligence Manipulation

Spy Chief’s ‘Unusual’ Contact With Military Official Raises Concerns About Intelligence Manipulation

    Director of National Intelligence James Clapper. (Partnership for Public Service / CC BY 2.0)

James Clapper—Barack Obama’s director of national intelligence—is said to be in what a former intelligence official called frequent and “highly, highly unusual” contact with a ranking junior intelligence officer who sits at the center of a growing scandal over rosy portrayals of the Pentagon’s war against Islamic State.

Clapper’s interlocutor—Army Brig. Gen. Steven Grove, head of U.S. Central Command’s intelligence wing—is said to be implicated in a Pentagon inquiry into manipulated war intelligence.

Spencer Ackerman reports at The Guardian:

In communications, Clapper, who is far more senior than Grove, is said to tell Grove how the war looks from his vantage point, and question Grove about Central Command’s assessments. Such a situation could place inherent pressure on a subordinate, sources said.

Knowledgeable former officials are doubtful that Clapper directly intends to manipulate intelligence. And they do not say that the director of national intelligence – who apologized to his Senate overseers in 2013 for publicly misleading Congress on the scope of domestic surveillance – ordered Grove or anyone else to change the command’s assessment of the war.

But one former intelligence official said Clapper “has to be careful of the Cheney effect, going over to the CIA and how does that affect people” – a reference to pressure felt by CIA analysts before the 2003 Iraq invasion to portray Saddam Hussein as posing a more dire threat than he actually did, following then Vice President Dick Cheney’s direct interaction with far more junior analysts and officials. …

More than 50 intelligence analysts, both those within Central Command and their seconded Defense Intelligence Agency (DIA) colleagues, have registered complaints about manipulated or skewed data, the Daily Beast reported on Wednesday. Analysts object to internal portrayals, said to come ultimately from Grove and Ryckman, of a war proceeding better than Isis’s persistent hold over large swaths of Iraq and Syria suggests. The existence of the Pentagon inquiry was first reported last month by the New York Times. …

 

…click on the above link to read the rest of the article…

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