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The Pronk Pops Show 931, July 19, 2017, Story 1: “Obamacare Failed” Says President Trump — Wants Obamacare Completely  Repealed and Replaced Sooner or Later — Obama Lied To American People — Does President Trump Understand The Relationship Between Pre-existing Conditions, Guaranteed Issue, Community Rating and Adverse Selection — Many Doubt Trump Really Understands The Relationship That Is The Real Reason Obamacare Was Designed To Fail From The Beginning So It Could Be Replaced By Single Payer Government Health Care — Videos

Posted on July 20, 2017. Filed under: Abortion, Addiction, American History, Barack H. Obama, Biology, Blogroll, Breaking News, Bribery, Budgetary Policy, Business, Cartoons, Chemistry, Communications, Congress, Constitutional Law, Corruption, Countries, Crime, Culture, Diet, Diets, Disasters, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Drugs, Economics, Education, Elections, Empires, Employment, Energy, Eugenics, Exercise, Fiscal Policy, Food, Food, Former President Barack Obama, Freedom of Speech, Government, Government Dependency, Government Spending, Health, Health Care, Health Care Insurance, Hillary Clinton, Hillary Clinton, Hillary Clinton, History, House of Representatives, Human, Human Behavior, Illegal Drugs, Immigration, Independence, Insurance, Investments, Labor Economics, Language, Law, Legal Drugs, Life, Lying, Media, Medical, Medicare, Medicine, Monetary Policy, National Interest, Networking, News, Obama, People, Philosophy, Photos, Politics, Polls, President Trump, Pro Abortion, Pro Life, Progressives, Radio, Rand Paul, Raymond Thomas Pronk, Regulation, Religion, Resources, Rule of Law, Scandals, Science, Security, Senate, Social Science, Social Security, Success, Tax Policy, Taxation, Taxes, Ted Cruz, United States Constitution, United States of America, Videos, Violence, Wealth, Welfare Spending, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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The Pronk Pops Show Podcasts

Pronk Pops Show 931,  July 19, 2017

Pronk Pops Show 930,  July 18, 2017

Pronk Pops Show 929,  July 17, 2017

Pronk Pops Show 928,  July 13, 2017

Pronk Pops Show 927,  July 12, 2017

Pronk Pops Show 926,  July 11, 2017

Pronk Pops Show 925,  July 10, 2017

Pronk Pops Show 924,  July 6, 2017

Pronk Pops Show 923,  July 5, 2017

Pronk Pops Show 922,  July 3, 2017 

Pronk Pops Show 921,  June 29, 2017

Pronk Pops Show 920,  June 28, 2017

Pronk Pops Show 919,  June 27, 2017

Pronk Pops Show 918,  June 26, 2017 

Pronk Pops Show 917,  June 22, 2017

Pronk Pops Show 916,  June 21, 2017

Pronk Pops Show 915,  June 20, 2017

Pronk Pops Show 914,  June 19, 2017

Pronk Pops Show 913,  June 16, 2017

Pronk Pops Show 912,  June 15, 2017

Pronk Pops Show 911,  June 14, 2017

Pronk Pops Show 910,  June 13, 2017

Pronk Pops Show 909,  June 12, 2017

Pronk Pops Show 908,  June 9, 2017

Pronk Pops Show 907,  June 8, 2017

Pronk Pops Show 906,  June 7, 2017

Pronk Pops Show 905,  June 6, 2017

Pronk Pops Show 904,  June 5, 2017

Pronk Pops Show 903,  June 1, 2017

Pronk Pops Show 902,  May 31, 2017

Pronk Pops Show 901,  May 30, 2017

Pronk Pops Show 900,  May 25, 2017

Pronk Pops Show 899,  May 24, 2017

Pronk Pops Show 898,  May 23, 2017

Pronk Pops Show 897,  May 22, 2017

Pronk Pops Show 896,  May 18, 2017

Pronk Pops Show 895,  May 17, 2017

Pronk Pops Show 894,  May 16, 2017

Pronk Pops Show 893,  May 15, 2017

Pronk Pops Show 892,  May 12, 2017

Pronk Pops Show 891,  May 11, 2017

Pronk Pops Show 890,  May 10, 2017

Pronk Pops Show 889,  May 9, 2017

Pronk Pops Show 888,  May 8, 2017

Pronk Pops Show 887,  May 5, 2017

Pronk Pops Show 886,  May 4, 2017

Pronk Pops Show 885,  May 3, 2017

Pronk Pops Show 884,  May 1, 2017

Pronk Pops Show 883 April 28, 2017

Pronk Pops Show 882: April 27, 2017

Pronk Pops Show 881: April 26, 2017

Pronk Pops Show 880: April 25, 2017

Pronk Pops Show 879: April 24, 2017

Pronk Pops Show 878: April 21, 2017

Pronk Pops Show 877: April 20, 2017

Pronk Pops Show 876: April 19, 2017

Pronk Pops Show 875: April 18, 2017

Pronk Pops Show 874: April 17, 2017

Pronk Pops Show 873: April 13, 2017

Pronk Pops Show 872: April 12, 2017

Pronk Pops Show 871: April 11, 2017

Pronk Pops Show 870: April 10, 2017

Pronk Pops Show 869: April 7, 2017

Pronk Pops Show 868: April 6, 2017

Pronk Pops Show 867: April 5, 2017

Pronk Pops Show 866: April 3, 2017

Image result for cartoons trump on obamacare failure

Image result for cartoons trump on obamacare failure

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Story 1: “Obamacare Failed” Says President Trump — Wants Obamacare Completely  Repealed and Replaced Sooner or Later — Obama Lied To American People — Does President Trump Understand The Relationship Between Pre-existing Conditions, Guaranteed Issue, Community Rating and Adverse Selection — Many Doubt Trump Really Understands The Relationship That Is The Real Reason Obamacare Was Designed To Fail From The Beginning So It Could Be Replaced By Single Payer Government Health Care — Videos

Trump Warns GOP Senators; 7-19-2017

MUST WATCH: President Trump Reacts to GOP Healthcare Bill Collapse – “Let ObamaCare Fail” (FNN)

LIMBAUGH: If We REPEAL Obamacare, “It’s The WILD WEST”

Rand Paul on Failed Healthcare Bill | Repealing Obamacare

Sen. Rand Paul Still Wants a Clean Repeal of Obamacare

Senator Mike Lee: Trump is right. repeal Obamacare now, replace later

Richard Epstein: Obamacare’s Collapse, the 2016 Election, & More

Richard Epstein – Obama Explained

Health Care 2: Can Congress Force Individuals to Buy Insurance?

Richard Epstein on Health Care Reform

The Truth Behind the Affordable Care Act – Learn Liberty

Is Obamacare Working? The Affordable Care Act Five Years Later

Why Is Healthcare So Expensive?

Why Is U.S. Health Care So Expensive?

Milton Friedman on universal health care

Milton Friedman on Medical Care (Full Lecture)

Professor Richard Epstein tribute to Milton Friedman

Does Trump Even Know What A Pre-Existing Conditions Is??

Here’s Why the Epic Health Care Reform Disaster Occurred

Here’s Why the Epic Health Care Reform Disaster Occurred

Will I pay more for insurance if I have a pre-existing condition under Obamacare?

Hume: Trump’s scenario for ObamaCare ‘politically nuts’

Obama’s Health Plan In 4 Minutes

How ObamaCare has been a financial failure

We Now Have Proof Obamacare Was Designed to Fail… and Here’s Why

The Pronk Pops Show Podcasts Portfolio

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The Pronk Pops Show 925, Story 1: Republicans Rush To Pass Repeal and Replace Obamacare Before August Recess with Pence, Cruz and McConnell Leading The Way — Videos — Story 2: Total Repeal of Obamacare Requires Total Repeal of All Obamacare Regulations Including Requiring Guaranteed Issue In Individual Health Insurance Market For Those With Preexisting Conditions, Community Rating Premiums and 10 Essential Health Care Benefits as Well As Repeal of The Individual and Employer Mandates and All Obamacare-Related Taxes– Address Individuals With Preexisting Conditions by State Special Risk Pools Insurance Coverage With State Subsidies Only and No Federal Subsidies — Otherwise Guaranteed Failure Just Like Obamacare Due To Adverse Selection — Leading To Single Government Payer Health Care System — Total Repeal of Obamacare Now Or Replace Your Representative and Senators Both Democrat and Republican Next November — It’s Now Or Never (O Sole Mio) — Videos

Posted on July 10, 2017. Filed under: American History, Biology, Blogroll, Breaking News, Communications, Computer, Congress, Countries, Donald J. Trump, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Education, Elections, Employment, Freedom of Speech, Government, Government Spending, Health Care, Health Care Insurance, History, House of Representatives, Human, Insurance, Investments, Language, Law, Life, Media, Medical, Medicine, Mike Pence, National Interest, News, People, Philosophy, Photos, Politics, Polls, President Barack Obama, President Trump, Progressives, Rand Paul, Rand Paul, Raymond Thomas Pronk, Rule of Law, Science, Security, Senate, Success, Taxation, Taxes, Ted Cruz, Ted Cruz, United States of America, Videos, Wealth, Wisdom | Tags: , , , , , , , , , , , |

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The Pronk Pops Show Podcasts

Pronk Pops Show 925,  July 10, 2017

Pronk Pops Show 924,  July 6, 2017

Pronk Pops Show 923,  July 5, 2017

Pronk Pops Show 922,  July 3, 2017 

Pronk Pops Show 921,  June 29, 2017

Pronk Pops Show 920,  June 28, 2017

Pronk Pops Show 919,  June 27, 2017

Pronk Pops Show 918,  June 26, 2017 

Pronk Pops Show 917,  June 22, 2017

Pronk Pops Show 916,  June 21, 2017

Pronk Pops Show 915,  June 20, 2017

Pronk Pops Show 914,  June 19, 2017

Pronk Pops Show 913,  June 16, 2017

Pronk Pops Show 912,  June 15, 2017

Pronk Pops Show 911,  June 14, 2017

Pronk Pops Show 910,  June 13, 2017

Pronk Pops Show 909,  June 12, 2017

Pronk Pops Show 908,  June 9, 2017

Pronk Pops Show 907,  June 8, 2017

Pronk Pops Show 906,  June 7, 2017

Pronk Pops Show 905,  June 6, 2017

Pronk Pops Show 904,  June 5, 2017

Pronk Pops Show 903,  June 1, 2017

Pronk Pops Show 902,  May 31, 2017

Pronk Pops Show 901,  May 30, 2017

Pronk Pops Show 900,  May 25, 2017

Pronk Pops Show 899,  May 24, 2017

Pronk Pops Show 898,  May 23, 2017

Pronk Pops Show 897,  May 22, 2017

Pronk Pops Show 896,  May 18, 2017

Pronk Pops Show 895,  May 17, 2017

Pronk Pops Show 894,  May 16, 2017

Pronk Pops Show 893,  May 15, 2017

Pronk Pops Show 892,  May 12, 2017

Pronk Pops Show 891,  May 11, 2017

Pronk Pops Show 890,  May 10, 2017

Pronk Pops Show 889,  May 9, 2017

Pronk Pops Show 888,  May 8, 2017

Pronk Pops Show 887,  May 5, 2017

Pronk Pops Show 886,  May 4, 2017

Pronk Pops Show 885,  May 3, 2017

Pronk Pops Show 884,  May 1, 2017

Pronk Pops Show 883 April 28, 2017

Pronk Pops Show 882: April 27, 2017

Pronk Pops Show 881: April 26, 2017

Pronk Pops Show 880: April 25, 2017

Pronk Pops Show 879: April 24, 2017

Pronk Pops Show 878: April 21, 2017

Pronk Pops Show 877: April 20, 2017

Pronk Pops Show 876: April 19, 2017

Pronk Pops Show 875: April 18, 2017

Pronk Pops Show 874: April 17, 2017

Pronk Pops Show 873: April 13, 2017

Pronk Pops Show 872: April 12, 2017

Pronk Pops Show 871: April 11, 2017

Pronk Pops Show 870: April 10, 2017

Pronk Pops Show 869: April 7, 2017

Pronk Pops Show 868: April 6, 2017

Pronk Pops Show 867: April 5, 2017

Pronk Pops Show 866: April 3, 2017

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Story 1: Republicans Rush To Pass Repeal and Replace Obamacare Before August Recess with Pence, Cruz and McConnell Leading The Way — Videos —

Ronald Reagan speaks out on Socialized Medicine – Audio

Is the GOP plan to replace ObamaCare dead?

Vice President Pence ‘s Obamacare Listening Session with Ohio Small Business Owners

Trump’s push to replace Obamacare in trouble as Congress returns from recess

Sen. Cruz on ‘Face the Nation’ – July 9, 2017

Sen Mike Lee on the push to repeal ObamaCare

Lawmakers respond to Senate health care proposal

Sen. Rand Paul: Senate health care bill needs more Obamacare ‘repeal’

Sen. Rand Paul: We shouldn’t try to fix government intervention with more intervention. – 6/22/17

I won’t vote to keep ObamaCare: Rand Paul

Coolidge: The Best President You Don’t Know

Amity Shlaes on Coolidge’s life, ideas, and success in bringing about low taxes and small government

Uncommon Knowledge: The Great Depression with Amity Shlaes

Amity Shlaes: Calvin Coolidge, Better Than Reagan?

Archie Bunker on Democrats

 

Trump prods Congress to pass stalled healthcare overhaul

By Susan Cornwell and Ian Simpson | WASHINGTON

President Donald Trump on Monday prodded the Republican-led U.S. Congress to pass major healthcare legislation but huge obstacles remained, with a senior lawmaker saying the Senate was unlikely to take up the stalled bill until next week.

The House of Representatives approved its healthcare bill in May but the Senate’s version appeared to be in growing trouble as lawmakers returned to Washington from a week-long recess.

“I cannot imagine that Congress would dare to leave Washington without a beautiful new HealthCare bill fully approved and ready to go!” Trump wrote on Twitter, referring to the seven-year Republican quest to dismantle Democratic former President Barack Obama’s signature legislative achievement.

Lawmakers are set to take another recess from the end of July until Sept. 5.

Repealing and replacing the Affordable Care Act, dubbed Obamacare, was a central campaign pledge for the Republican president. But Senate Republican leaders have faced a revolt within their ranks, with moderate senators uneasy about the millions of Americans forecast to lose their medical insurance under the legislation and hard-line conservatives saying it leaves too much of Obamacare intact.

They were struggling to find a compromise that could attract the 50 votes needed for passage in a chamber Republicans control by a 52-48 margin, with Vice President Mike Pence casting a potential tie-breaking vote in the face of unified Democratic opposition.

No. 2 Senate Republican John Cornyn said Republicans could release an updated draft of their bill by the end of the week and told Fox News that senators could vote as early as Tuesday or Wednesday of next week.

 
U.S. President Donald Trump waves as walks on the South Lawn of the White House upon his return to Washington, U.S., from the G20 Summit in Hamburg, July 8, 2017. REUTERS/Yuri Gripas
“We’re going to continue to talk and listen and exchange ideas on how we can continue to make improvements,” Cornyn said on the Senate floor.

Also speaking on the Senate floor, Majority Leader Mitch McConnell gave no timetable for the bill. McConnell signaled his determination to keep working and said mere legislative “band-aids” would not suffice.

Senate Democratic leader Chuck Schumer said he had written to McConnell urging a bipartisan effort to stabilize the health insurance market, noting that McConnell had been quoted recently as saying Congress would need to shore up that market if lawmakers fail to repeal Obamacare.

The U.S. Centers for Medicare and Medicaid Services issued data on Monday showing a 38 percent decrease in applications by insurers to sell health plans in the Obamacare individual market in 2018 compared to this year. The agency said insurers continue to flee the exchanges, the online marketplace for health insurance set up under Obamacare.

MORE AMERICANS UNINSURED

With uncertainty hanging over the healthcare system, the percentage of U.S. adults without health insurance grew in the April-May-June period to 11.7 percent, up from 11.3 percent in the first quarter of 2017, according to Gallup-Sharecare Well-Being Index figures released on Monday. That translates into nearly 2 million more Americans who have become uninsured.

Scores of protesters voiced opposition to the legislation outside the Republican National Committee headquarters and at the offices of some Republican lawmakers including House of Representatives Speaker Paul Ryan, chanting slogans including “Trumpcare kills” and “Healthcare is a human right.”

U.S. Capitol Police said in a statement 80 people were arrested at 13 locations in House and Senate office buildings after they refused “to cease and desist with their unlawful demonstration activities.”

Republicans criticize Obamacare as a costly government intrusion into the healthcare system. Democrats call the Republican legislation a giveaway to the rich that would hurt millions of the most vulnerable Americans.

The Senate legislation would phase out the Obamacare expansion of the Medicaid health insurance program for the poor and disabled, sharply cut federal Medicaid spending beginning in 2025, repeal most of Obamacare’s taxes, end a penalty on Americans who do not obtain insurance and overhaul Obamacare’s subsidies to help people buy insurance with tax credits.

Leerink Partners analyst Ana Gupte said investors remained in a “wait-and-see” mode regarding the Senate legislation.

(For a graphic on who’s covered under Medicaid, click bit.ly/2u3O2Mu)

(Additional reporting by Susan Heavey, Eric Beech and Doina Chiacu; Writing by Will Dunham; Editing by Tom Brown)

http://www.reuters.com/article/us-usa-politics-healthcare-idUSKBN19V0YP

 

The Health 202: Cruz picks government health care subsidies as lesser of two evils

 July 10 at 9:03 AM
THE PROGNOSIS

Even conservatives acknowledge that the sickest Americans need help in paying their own steep insurance costs. In an ironic twist, some would rather have the government make up the difference rather than spreading expenses among the healthy.

Health insurance markets are so complicated, and the policy around them is so complex and intertwined, that politicians don’t always land ideologically on the issue where you’d think. Just look at how GOP Sen. Ted Cruz of Texas is trying to change the Obamacare overhaul that Senate Republicans will try to pass in the next three weeks before August recess. The former presidential candidate last week touted his ideas and on the Sunday shows yesterday, my colleague Sean Sullivan reports.

Cruz’s so-called “Consumer Freedom Amendment” — which conservatives have been rallying around as the revision they most want — would essentially free the healthiest Americans from covering the costs of the sickest Americans. But the sick would be even more heavily reliant on federal assistance as a result.

“You would likely see some market segmentation” Cruz told Vox last month. “But the exchanges have very significant federal subsidies, whether under the tax credits or under the stabilization funds.”

The Cruz amendment, which is being scored by the Congressional Budget Office as one of several potential changes to the Senate health-care bill, would result in segmenting the individual insurance market into two groups, experts say. Under it, insurers could sell cheaper, stripped-down plans free of Obamacare coverage requirements like essential health benefits or even a guarantee of coverage. These sparser plans would appeal to the healthiest Americans, who would gladly exchange fewer benefits for lower monthly premiums.

But insurers would also have to sell one ACA-compliant plan. The sickest patients would flock to these more expansive and expensive plans because they need more care and medications covered on a day-to-day basis. As a result, premiums for people with expensive and serious medical conditions like diabetes or cancer would skyrocket because all those with such serious conditions would be pooled together.

“The question is, would there be a premium spiral on the ACA-complaint market?” said Cori Uccello, a senior health fellow with the American Academy of Actuaries. “Can they ever price those premiums adequately if it’s just going to be the sickest people in there?”

It’s true that government subsidies — which under the Senate plan would be available to those earning up to 350 percent of the federal poverty level — would be even more crucial in order for these sicker Americans to afford the cost of their coverage, as would an extra infusion of federal “stabilization” money for states to cover their steep expenses.

Cruz hasn’t laid out all the details of how his amendment would work, nor is it even certain Senate Majority Leader Mitch McConnell (R-Ky.) will accept it as part of his health-care bill. But should it be adopted, and the Senate bill ultimately made law, the Cruz amendment would significantly shift how the individual insurance market operates.

But in Cruz’s mind, it would solve one of the biggest problems with Obamacare: that it robs the healthy to pay for the sick. He’s spent the last week pitching it as the legislative solution for passing the Senate bill.

“I think really the consumer freedom option is the key to bringing Republicans together and getting this repeal passed,” Cruz said on ABC yesterday.

Of course, everyone paying into the system for those who most need care is the way insurance is fundamentally supposed to work. The ACA requires insurers to offer a wider ranger of benefits in plans sold to everyone regardless of their health status. But to Cruz and his compatriots, requiring healthier people to buy cushier plans than they want or need is an abridgment of personal freedom and oversteps federal regulatory authority. So they’re more worried at the moment about rolling back more ACA regulations and less worried about federal spending.

“I think for conservatives it’s become a question of picking their poison,” Larry Levitt, president of the Kaiser Family Foundation, told me. “Is it government spending, or regulation? It’s almost like with this amendment, Sen. Cruz is acknowledging the need for a government entitlement program.”

Conservative groups that want a much fuller Obamacare repeal than the Senate bill provides have been jumping on the Cruz bandwagon, including Club for Growth, FreedomWorks and Tea Party Patriots.

.@SenTedCruz@SenMikeLee ‘Consumer Choice’ amendment, aka individual Obamacare Opt Out, is real step toward . We Support it!

From Tea Party Patriots founder Jenny Beth Martin:

If the Senate adopts the Cruz-Lee Amdt to the health care bill, @TPPatriots will be more likely to support the bill http://www.teapartypatriots.org/news/tea-party-patriots-signals-support-for-cruz-lee-amendment-to-senate-health-care-bill/ 

Photo published for Tea Party Patriots Signals Support for Cruz-Lee Amendment to Senate Health Care Bill

Tea Party Patriots Signals Support for Cruz-Lee Amendment to Senate Health Care Bill

Atlanta, GA – Tea Party Patriots President and co-founder Jenny Beth Martin released the following statement today regarding the amendment to the Senate health care bill offered by Senators Ted Cruz…

teapartypatriots.org

On the flip side, the Cruz amendment could help kill the Senate health-care bill in the end because it’s prompting fears among moderates (whose votes are also needed to pass the legislation) that patients with preexisting conditions could be harmed.

“I think that reopens an issue that I can’t support, that it would make it too difficult for people with preexisting conditions to get coverage,” Sen. Shelley Moore Capito (R-W.Va.) told the Charleston Gazette-Mail.

Cruz has said the Senate bill’s $100 billion stabilization fund for states could help cover costs for the resulting pricier coverage for those with preexisting conditions under his amendment. And to parry concerns about the increased federal spending, which to some is more than ironic coming from Cruz? The  talking point Capitol Hill aides and conservative wonks are adopting: Directly subsidizing costs for those with preexisting conditions is a more “honest” approach by the government than forcing healthy people to indirectly pay for their care by buying comprehensive coverage.

“If you’re going to have a subsidy, have it come directly from the taxpayer and call it a subsidy rather than try to dragoon people to do the government’s work,” said Chris Jacobs, a former GOP Hill staffer and founder of Juniper Research Group.

“It’s more honest and fair to have the government than to have healthy, middle-class families pay for it,” Conn Carroll, a spokesman for Sen. Mike Lee (R-Utah) said.

A co-sponsor of Cruz’s amendment, Lee is insisting it be added to the Senate bill before he’ll vote for it. Sens. Rand Paul of Kentucky and Ron Johnson of Wisconsin have sent similar signals. And remember — if more than two Republicans defect, the measure would be sunk in the Senate and the GOP effort to repeal-and-replace Obamacare would most likely meet a bitter end.

Some exciting news over at The Daily 202 from my colleague James Hohmann, whose newsletter makes its debut on Amazon Echo devices and Google Home as a flash briefing called “The Daily 202’s Big Idea.” Every morning, you can listen to James analyze one of the day’s most important political stories, along with three headlines you need to know. To learn how to add The Daily 202’s Big Idea to your flash briefings on your Echo device or Google Home, visit this page. You can also get the briefing on Apple Podcasts or wherever you get your podcasts.

https://www.washingtonpost.com/news/powerpost/paloma/the-health-202/2017/07/10/the-health-202-cruz-picks-government-health-care-subsidies-as-lesser-of-two-evils/59611958e9b69b7071abcae4/?utm_term=.7137a797b4cf

GOP, White House Plot ‘Urgent Blitz’ For Repeal Votes | The Last Word | MSNBC

Story 2: Total Repeal of Obamacare Requires Total Repeal of All Obamacare Regulations Including Requiring Guaranteed Issue In Individual Health Insurance Market For Those With Preexisting Conditions, Community Rating Premiums and 10 Essential Health Care Benefits as Well As Repeal of The Individual and Employer Mandates and All Obamacare-Related Taxes– Address Individuals With Preexisting Conditions by State Special Risk Pools Insurance Coverage With State Subsidies Only and No Federal Subsidies — Otherwise Guaranteed Failure Just Like Obamacare Due To Adverse Selection — Leading To Single Government Payer Health Care System — Total Repeal of Obamacare Now Or Replace Your Representative and Senators Both Democrat and Republican Next November — It’s Now Or Never (O Sole Mio) — Videos

Rush Limbaugh Podcast 7/11/17 – Exclusive: Vice President Mike Pence Calls the Show

AHCA Myth No. 1: People with Pre-existing Conditions Will Lose Coverage

Fox News host says coverage for preexisting conditions is a ‘luxury’

Dr. Siegel breaks down the pre-existing conditions challenge

The Pre-Existing Condition Scam

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Debate over pre-existing conditions stalling health-care reform?

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ObamaCare Revealed – Pre-Existing Conditions Coverage

Why Exactly Trump’s Healthcare Plan Failed

We Now Have Proof Obamacare Was Designed to Fail… and Here’s Why

Why Is Healthcare So Expensive?

Single-Payer Health Care: America Already Has It

Big Government Kills Small Businesses

Are You on the Wrong Side of History?

Socialism Makes People Selfish

Democratic Socialism is Still Socialism

Elvis – It’s Now Or Never (O Sole Mio)

 

 

It’s Now or Never
It’s now or never,
Come hold me tight
Kiss me my darling,
Be mine tonight
Tomorrow will be too late,
It’s now or never
My love won’t wait.
When I first saw you
With your smile so tender
My heart was captured,
My soul surrendered
I’d spend a lifetime
Waiting for the right time
Now that your near
The time is here at last.
It’s now or never,
Come hold me tight
Kiss me my darling,
Be mine tonight
Tomorrow will be too late,
It’s now or never
My love won’t wait.
Just like a willow,
We would cry an ocean
If we lost true love
And sweet

 

FACT VERSUS FEAR: THE AHCA AND PRE-EXISTING CONDITIONS

On May 4, 2017, the House of Representatives passed the American Health Care Act (AHCA), a bill to repeal and replace many provisions of the Affordable Care Act (ACA). Immediately following the vote, misinformation about the bill began spreading like wildfire, stoking fears and outrage. The issue which seems to be getting the most attention is the potential impact this legislation could have on people with pre-existing conditions. However, as the legislation now moves to the Senate for further consideration and amendment, it is important that all stakeholders be well informed, and understand what the legislation actually says and who may realistically be impacted by any possible changes to current law.

  • The number of people in the U.S. with a condition that would likely qualify as pre-existing is not easily known, primarily because there is not a specific, pre-determined list of conditions. Estimates vary depending on how one defines “pre-existing.”
  • Even the range included in a recent report from the Department of Health and Human Services varied by a margin of more than 2:1, from between 61 million to 133 million people.[1] That said, it is likely that approximately as many as a quarter of Americans, and possibly more, have a pre-existing health condition, making it understandable why some are concerned.
  • As the AHCA is currently written, the only people who could be charged a premium based on their health status are those with a pre-existing condition who are not enrolled in a large group health plan, are also living in a state that obtains a waiver, and have let their insurance lapse in the past year for 63 days or more. In this case, the increased premium would only be allowed for one year. Further, no one may be denied insurance because of a pre-existing condition.

Background

Before passage of the ACA, most laws pertaining to the regulation of the individual health insurance market were passed at the state level and could vary widely from one state to another. The McCarran-Ferguson Act of 1945 provided states primary responsibility for regulating the business of insurance.

The Employee Retirement Income Security Act of 1974 (ERISA) imposed federal standards on certain types and with respect to certain provisions of large group (employer-sponsored) health plans, some of which supersede state law.[2] Among the provisions included in ERISA is a requirement that plans be offered on a guaranteed-issue basis, meaning that insurers are prohibited from denying coverage to the group based on medical claims history; though, the policy may be medically underwritten, meaning the premiums are based on the insured’s health status.

In 1996, the Health Insurance Portability and Accountability Act (HIPAA) was passed and imposed additional federal health insurance standards across the individual, small group, and large group markets. In response to concerns of “job-lock”—the fear that leaving a job could result in the inability to regain health insurance if an individual had a pre-existing condition—HIPAA required all states to guarantee renewability of health insurance coverage to anyone who had creditable coverage for the past 18 months, with no more than a 63-day gap in coverage during that time.[3] However, while insurers were required to renew an individual’s policy from one year to the next, they were still not prohibited from medically underwriting individuals. Thus, some individuals found that while a plan was still technically available to them, the premium may have effectively priced them out of the market. Even those without a pre-existing condition may have found the cost of insurance to be significantly higher without the added employer contribution and tax advantage that such plans receive, which could make maintaining coverage, and HIPAA eligibility, more difficult.

Very few states previously had guarantee issue or renewability requirements or other protections for individuals not covered by HIPAA.[4] Most states permitted insurers to impose pre-existing condition exclusions, in which a pre-existing condition could be used to deny coverage altogether, or would not be covered by an individual’s new insurance policy for at least a certain amount of time, if not indefinitely. Varying “look-back” periods were also prevalent, which regulated the amount of time during which the insurer may check an individual’s claims history to make such a determination.

Current Law

The ACA attempted to mitigate these issues by imposing federal guaranteed issue requirements paired with community rating, which prohibits medical underwriting, across all health insurance markets. For many, these protections became the most important provisions of the ACA. However, there are economic consequences associated with such protections; primarily, higher average premiums in the individual market and increased spending by federal taxpayers. Multiple risk mitigation programs were included in order to help subsidize the cost of insuring high-risk, high-cost individuals, but the funding has not been sufficient. Insurers continue to lose money in the individual market, despite tens of billions of dollars in federal payments each year. In fact, many insurers have found the markets to be so unprofitable due to the many enhanced regulations, that they have decided they can no longer participate in the individual market in many states.[5]

The AHCA

The AHCA, passed by the House of Representatives on May 4, would repeal and replace many provisions of the ACA. One of the ACA’s most well-known provisions, the individual mandate which requires everyone to obtain health insurance, would be repealed (practically speaking, though not technically) and replaced with a continuous coverage provision.[6] These two policies are similar. The individual mandate imposes an annual penalty for not being insured equal to the greater of $695 per adult or 2.5 percent of household income.[7] The continuous coverage provision in this legislation would, instead of federally mandating that everyone buy insurance, incentivize individuals to remain insured by allowing for the imposition of a 30 percent premium surcharge for one year on individuals who signed up for coverage if they were uninsured for more than two months in the previous year.[8] After paying the surcharge for one year, individuals would return to paying regular community-rated premiums.

One provision that would not be repealed is the federal guaranteed issue requirement; insurers in every state would still be prohibited from denying insurance coverage to anyone on the basis of a pre-existing condition. In no circumstance would this protection be denied, though it seems much confusion surrounding this protection has stemmed from the adoption of several amendments to the underlying legislation.

The first relevant amendment is one that was negotiated by Rep. Mark Meadows (R-NC), on behalf of the Freedom Caucus. This amendment includes a provision pertaining to the “essential health benefits” established by the ACA—ten categories of care which are now required to be covered under every health insurance plan. The amendment would permit states, rather than the federal government, to define the EHB standards for themselves beginning in 2018.[9] However, this provision was ultimately struck.

A second amendment was offered by Rep. Tom MacArthur (R-NJ) to address concerns that states would drastically reduce benefit requirements. The MacArthur amendment reinstates the federal EHB standards, but would allow states to apply for waivers to a number of provisions, under certain conditions. Waivers would be permitted for the following: beginning in 2018, a change in age-rating restrictions (which determine how much more an insurer may charge an older person relative to a younger person); beginning in 2019, changes to the community rating provisions, which prohibit insurers from medically underwriting individuals; and, beginning in 2020, changes to the federal EHB standards, permitting states to set their own.

Any state seeking to obtain a community rating waiver must first have in place a program to help high-risk individuals enroll in coverage or a program providing incentives to insurers to enter the market and stabilize premiums, or an invisible risk-sharing program, as defined by the Schweikert/Palmer amendment.[10] All of these programs would be at least partially funded by the $138 billion provided over the next ten years by the Patient and State Stability Fund created by AHCA. The state must also specify how the waiver it is requesting would assist in: reducing average premiums in the state, increasing the number insured, stabilizing the health insurance market, stabilizing premiums for people with pre-existing conditions, or increasing plan choice in the state. If a state demonstrates it has met these conditions and obtains such a waiver, then it may permit insurers to waive the community rating protections, though only for individuals who have not maintained continuous coverage (save for the 63-day allowance) seeking to enroll in coverage in the individual and small group markets. In other words, individuals who would otherwise face a 30 percent surcharge as a result of not maintaining continuous coverage, would instead be medically underwritten for one year. However, under no circumstance may the gender rating protections be waived; insurers would continue to be prohibited from charging different rates based on whether an individual is a male or female.

Thus, the only people who could be charged a premium based on their health status are those with a pre-existing condition, not enrolled in a large group health plan, living in a state that obtains a waiver, who have let their insurance lapse in the past year for 63 days or more, and then only for one year. All others would continue to be protected by the community rating provisions currently in place under the ACA. Further, no one could be denied coverage because of the existence of a pre-existing condition, or even face a lock-out period.

Conclusion

The AHCA would not provide for the return to the status quo prior to the ACA. It is unlikely that many Americans will be impacted by the provisions of the MacArthur amendment. Finally, the AHCA must still be passed by the Senate and is likely to undergo significant reforms before it does, in which case, the legislation would again have to be passed by the House.

 

[1] https://aspe.hhs.gov/system/files/pdf/255396/Pre-ExistingConditions.pdf

[2] https://www.nahu.org/consumer/GroupInsurance.cfm

[3] There are some exceptions to the guaranteed renewability requirements.

[4] http://www.ncsl.org/research/health/individual-health-insurance-in-the-states.aspx

[5] http://kff.org/health-reform/issue-brief/2017-premium-changes-and-insurer-participation-in-the-affordable-care-acts-health-insurance-marketplaces/

[6] Technically, the mandate would not be repealed because legislative rules prohibit such a change through the reconciliation process, but the applicable penalty would be set to $0, rendering the mandate moot.

[7] https://www.healthcare.gov/fees/fee-for-not-being-covered/

[8] The continuous coverage provisions which match the 63-day rule of the HIPAA requirements.

[9] https://rules.house.gov/sites/republicans.rules.house.gov/files/115/policymngr-amdt.pdf

[10] https://rules.house.gov/sites/republicans.rules.house.gov/files/115/AHCA/Palmer-Schweikert%20Amendment.pdf

Read more: https://www.americanactionforum.org/insight/fact-versus-fear-ahca-pre-existing-conditions/#ixzz4mSiu1KRn
Follow us: @AAF on Twitter

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The Pronk Pops Show 918, June 26, 2017, Story 1: Supreme Court 9-0 Decision Backs President Trump’s Travel Ban With Temporary Stay But Allows Refugees With A “Bona Fide” Relationship With Legal U.S. Residents To Enter U. S. — Will Hear Case In The Fall whether or not the travel ban is constitutional — Videos — Story 2: Supreme Court Rules in 7-2 Decision State Funding For Religious School Can Use Taxpayer Funds For Playground — Videos — Story 3: American People Optimistic As Consumer Confidence Increases — Awaiting The Trump Tax Cut and Total Repeal Of Obamacare — Videos

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Image result for supreme court decisions june 26, 2017

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Story 1: Supreme Court 9-0 Decision Backs President Trump’s Travel Ban But Allows Refugees With A “Bona Fide” Relationship With Legal U.S. Residents To Enter U. S. — Will Hear Case In The Fall whether or not the travel ban is constitutional — Videos —

US Supreme Court allows part of Trump travel ban to go into effect – BBC News

Part of Trump’s travel ban will go into effect

Supreme Court travel order decision is a Trump win: Fmr. Rep. Hoekstra

Panel Discusses: Supreme Court Allows Part of Trump Travel Ban to Take Effect

Here’s what the Supreme Court ruling on Trump’s travel ban means

Why the travel ban ruling is a political win for Trump

Hume: Admin is in ‘pretty good shape’ with travel ban case

Supreme Court to Hear Trump’s Travel Ban, Orders Temporary Stay

Varney & Co : Sekulow: Trump travel ruling a huge win for administration : 6/26/2017

It’s an absolutely boffo slam dunk for Trump in SCOTUS travel ban case.

Lionel on SCOTUS Travel Ban Decision Inter Alia

Ben Shapiro: Supreme Court’s decisions on Trump’s travel ban & public funds for churches

The Democrat Vitriol Boomerang! Pres Trump Stronger Than Ever!

Trump claims ‘clear victory’ after Supreme Court says his ‘Muslim’ travel ban can go into effect NOW against people without U.S. ties

  • Supreme Court justices will act on Trump’s travel ban in the fall, and allowed a major part of it to go into effect immediately
  • Refugees and others from six Muslim-majority countries who already have a ‘bona fide relationship’ with legal U.S. residents will be allowed to come
  • While the case is pending, the lower court’s injunction will apply only to those people who have no U.S. ties
  • Rumors also abound in Washington, DC that Supreme Court Justice Anthony Kennedy, 80, may announce his retirement on Monday
  • Trump and press secretary Sean Spicer both called the outcome a ‘9-0’ decision, although the court didn’t say how large a majority of the justices approved it

President Donald Trump took a victory lap on Monday after the Supreme Court restored most of his executive order banning incoming travel from six terror-prone countries.

‘Today’s unanimous Supreme Court decision is a clear victory for our national security,’ the president said in a statement shortly after the high court ruled. ‘It allows the travel suspension for the six terror-prone countries and the refugee suspension to become largely effective.’

The Supreme Court said it will decide in the fall whether or not the travel ban is constitutional. Liberal state attorneys general have argued that it amounts to a religious test for entry into the U.S. since the affected countries all have Muslim majorities.

The court said that while the wheels of justice turn, the Trump administration can enforce the executive order against anyone from those nations who doesn’t already have a ‘bona fide relationship’ with a U.S. citizen or legal resident.

The stopgap measure, announced Monday morning, is largely a victory for Trump, who will be allowed – at least temporarily – to stem the flow of immigrants and refugees from Iran, Libya, Somalia, Sudan, Syria and Yemen.

Trump has said he would put his ban into effect 72 hours after the Supreme Court gives him a green light.

Technically, the justices left a lower court injunction in place, but only for people whose cases mirror those of the original plaintiffs – meaning ‘foreign nationals who have a credible claim of a bona fide relationship with a person or entity in the United States.’

‘All other foreign nationals are subject to the provisions of [the executive order],’ the court ruled.

President Donald Trump won a major victory – at least for now – on Monday, as the Supreme Court allowed him to enforce most of his travel ban against people from six terror-prone and Muslim-majority countries

President Donald Trump won a major victory – at least for now – on Monday, as the Supreme Court allowed him to enforce most of his travel ban against people from six terror-prone and Muslim-majority countries

Supreme Court justices decided to limit the reach of a lower court’s injunction against Trump’s travel ban, allowing much of it to take affect – at least until the high court hears the case formally in the fall

There are rumors that Supreme Court Justice Anthony Kennedy, 80, could announce his retirement from the bench as soon as this week

There are rumors that Supreme Court Justice Anthony Kennedy, 80, could announce his retirement from the bench as soon as this week

Trump framed the decision as a win for national security, mirroring his claims that controlling travel entries is a vital anti-terror tool.

‘As President, I cannot allow people into our country who want to do us harm,’ he said Monday. ‘I want people who can love the United States and all of its citizens, and who will be hardworking and productive.’

‘My number one responsibility as Commander in Chief is to keep the American people safe. Today’s ruling allows me to use an important tool for protecting our Nation’s homeland.’

White House press secretary Sean Spicer told reporters in an off-camera news briefing that Trump was ‘honored’ by Monday’s result which ‘allowed him to use an important tool to protect our nation’s homeland.’

Like Trump, he referred to the outcome as a ‘9-0’ decision.

Asked how that can be accurate when the Supreme Court did not publish a list of how many justices approved, he said he would check with the White House counsel’s office for clarification.

‘We’ll probably have further guidance for you as it becomes available,’ Spicer said.

White House press secretary Sean Spicer defended the travel ban and the Supreme Court ruling, but punted on a question about why the president called it a 9-0 ruling

White House press secretary Sean Spicer defended the travel ban and the Supreme Court ruling, but punted on a question about why the president called it a 9-0 ruling

PRESIDENT TRUMP REACTS

‘Today’s unanimous Supreme Court decision is a clear victory for our national security. It allows the travel suspension for the six terror-prone countries and the refugee suspension to become largely effective.

‘As President, I cannot allow people into our country who want to do us harm. I want people who can love the United States and all of its citizens, and who will be hardworking and productive.

‘My number one responsibility as Commander in Chief is to keep the American people safe. Today’s ruling allows me to use an important tool for protecting our Nation’s homeland. I am also particularly gratified that the Supreme Court’s decision was 9-0.’

The media circus that usually accompanies a Supreme Court decision day was evident this morning in Washington outside the high court

The media circus that usually accompanies a Supreme Court decision day was evident this morning in Washington outside the high court

Trump insisted the decision to lift most of a lower court's 'stay' against his travel ban was a unanimous one, but the administration hasn't substantiated that claim

Trump insisted the decision to lift most of a lower court’s ‘stay’ against his travel ban was a unanimous one, but the administration hasn’t substantiated that claim

Democratic National Committee chairman Tom Perez lashed out at the administration for proposing the ban in the first place.

‘Donald Trump’s Muslim ban is an unconstitutional and un-American assault on our country’s foundation of religious freedom,’ Perez said in a statement.

‘As a nation, our diversity is our greatest strength, and we cannot allow such prejudice to shut the doors of progress. Democrats will continue to fight this hatred every step of the way.’

But Attorney General Jeff Sessions called the ruling ‘an important step towards restoring the separation of powers’ between the White House and the federal courts.

‘We have seen far too often in recent months that the threat to our national security is real and becoming increasingly dangerous,’ he added.

‘Groups like ISIS and al Qaeda seek to sow chaos and destruction in our country, and often operate from war-torn and failed countries while leading their global terror network. It is crucial that we properly vet those seeking to come to America from these locations, and failing to do so puts us all in danger.’

The administration has said the ban was needed to allow an internal review of the screening procedures for visa applicants from the six relevant countries.

That review should be complete before October 2, the first day the justices could hear arguments in their new term.

Trump launched a nationwide controversy by signing an executive order a week after his inauguration, barring the entry of refugees and other travelers from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen; Iraq was removed from a second version that the high court will review

Trump launched a nationwide controversy by signing an executive order a week after his inauguration, barring the entry of refugees and other travelers from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen; Iraq was removed from a second version that the high court will review

The Supreme Court could have a vacancy by the time that autumn session rolls around, if Justice Anthony decides to retire as some expect.

Kennedy did not use the occasion of Monday’s scheduled high court announcements to say he would be stepping down.

But if he does, President Donald Trump will have a second pick in the first months of his administration. Kennedy’s departure could also allow conservatives to take firm control of the court.

Kennedy turns 81 next month and has been on the court for nearly 30 years. Several of his former law clerks have said they think he is contemplating stepping down in the next year or so.

Washington was abuzz with talk this weekend that President Donald Trump may soon have another chance to nominate a judge to the highest court in the land.

If the speculation pans out, that would give Trump his second high court pick in the first months of his administration.

The famed 'running of the interns' was a familiar sight on Monday as young staffers to news agencies hurried to bring written case decisions to their reporters and producers

The famed ‘running of the interns’ was a familiar sight on Monday as young staffers to news agencies hurried to bring written case decisions to their reporters and producers

 President Trump’s travel ban will head to the Supreme Court

Kennedy did not address the retirement rumors when he and his clerks gathered over the weekend for a reunion, according to three clerks who were there. The decision to push up the reunion by a year helped spark talk he might be leaving the court.

Kellyanne Conway, senior counselor to President Trump, declined Monday to join in on the conjecture.

‘That is totally Justice Kennedy’s decision and he has served for 30 years, almost 30 years, with distinction and care on the Court and that is entirely his decision,’ she said on Fox & Friends.

‘I do know that the president, when he appointed Neil Gorsuch, made very clear that at any time that he gets a federal appointment, whether it’s the Supreme Court level of the District courts the circuit courts, he will appoint people who have fidelity to the Constitution, they won’t legislate from the bench, make it up as they go along.’

Conway had declined to say in a Sunday interview whether the president and Kennedy had discussed retirement.

‘I will never reveal a conversation between a sitting justice and the president or the White House, but we’re paying very close attention to these last bit of decisions,’ she said on ABC News.

The original travel ban executive order triggered worldwide outrage as well as protests (above) in the United States like this one at New York City’s John F. Kennedy International Airport

In 2015, Kennedy wrote the majority opinion in Obergefell v. Hodges, the landmark case legalizing same sex marriage be made legal nationwide. Madeleine Troupe of Houston, Texas, wipes tears of joy after the Supreme Court legalized same sex marriage on June 26, 2015

In 2015, Kennedy wrote the majority opinion in Obergefell v. Hodges, the landmark case legalizing same sex marriage be made legal nationwide. Madeleine Troupe of Houston, Texas, wipes tears of joy after the Supreme Court legalized same sex marriage on June 26, 2015

If Kennedy does retire, that means President Donald Trump would be able to nominate a second justice to the bench. Trump is seen above during the swearing-in of his first nominee, Neil Gorsuch, at the White House on April 10, 2017

Justice Kennedy, who is known as a moderate Republican, was nominated by then-President Ronald Reagan in 1987.

Since Sandra Day O’Connor retired in 2006, Kennedy has been the key swing vote on a number of 5-4 decisions.

In 2015, Kennedy wrote the majority opinion in Obergefell v. Hodges, the landmark case whose ruling mandated that same sex marriage be made legal nationwide.

The concluding paragraph of Kennedy’s 28-page majority opinion was even used by many same sex and heterosexual couples alike as their wedding vows.

‘No union is more profound than marriage,’ Kennedy’s opinion says, ‘for it embodies the highest ideals of love, fidelity, devotion, sacrifice and family. In forming a marital union, two people become something greater than once they were.’

Several of his former law clerks have said they think he is contemplating stepping down in the next year or so.

Kennedy and his clerks were gathering over the weekend for a reunion that was pushed up a year and helped spark talk he might be leaving the court.

‘Soon we’ll know if rumors of Kennedy’s retirement are accurate,’ one former Kennedy clerk, George Washington University law professor Orin Kerr, said on Twitter Friday.

http://www.dailymail.co.uk/news/article-4640028/Supreme-Court-act-travel-ban-Kennedy-retire.html#ixzz4l9IuSa5T

Story 2: Supreme Court Rules in 7-2 Decision State Funding For Religious School Can Use Taxpayer Funds For Playground — Videos

 

U.S. Supreme Court Rules In Religious Rights Case

Supreme Court Rules Religious School Can Use Taxpayer Funds For Playground

The Supreme Court’s big announcements on religion

 

Story 3: American People Optimistic As Consumer Confidence Increases — Awaiting The Trump Tax Cut and Total Repeal Of Obamacare — Videos

Image result for  cartoons trumpcare

Good Question: How Is Consumer Confidence Measured?

Consumer Confidence Numbers Fall; No Reason To Worry, Still A Good Number

Declining oil prices good for the U.S. economy?

Oil price will see ‘further softness’ before rising through to the end of 2017 | IG

Surprise! Trumps Healthcare is Effectively Obamacare Lite. Conservative Critics Slam Plan

Shields and Brooks on the Senate health care bill unveiled, Trump’s tape clarification

CBO score: 22 million more uninsured under Senate health bill

Rand Paul on the Senate health care bill: Republicans ‘promised too much’ that they ‘can’t provide’

Sen. Rand Paul: We shouldn’t try to fix government intervention with more intervention. – 6/22/17

Fox host shreds Katrina Pierson for attacking anti-Trumpcare GOP senator

Secretary Price Applauds Senate Proposal to Repeal and Replace Obamacare

GOP health care bill will ruin the Republican Party: Ann Coulter

New MSNBC Host Begs Republican To Pass Trumpcare NOW

LYING republican senator gets DEBUNKED on Health care by Democrats 6/22/2017

America’s rising consumer confidence mostly due to the elderly and less-educated

After more than a decade of disappointment, American consumers are now more hopeful than at any point since the housing bubble:

Those who think surveys of expectations have predictive power for spending and saving might therefore conclude the uptick bodes well for America’s growth outlook. However, a closer look at who exactly is excited about the future suggests there is less here than meets the eye.

Deutsche Bank’s Torsten Slok points out that the improvement in expectations is entirely due to Americans without a college degree, rather than those with greater spending power and higher earning potential. Americans with degrees have been getting steadily less optimistic since mid-2015:

Americans without degrees are as optimistic now as they’ve ever been since the survey began nearly four decades ago. Only the peak of the tech bubble compares. By contrast, Americans with degrees are about as confident in the future as they were in September 2007, when the credit crisis had already begun:

The shift since the election looks even starker if you look at the gap in expectations across the two groups over time. The change since November 2016 is unprecedented:

Slightly less dramatic, but nevertheless revealing, is the change in expectations among younger people, who have their most productive years ahead of them, relative to older people, who do not.

Since the start of 2015, the outlook among the young has deteriorated sharply, albeit from a high base. Meanwhile, the expectations of Americans ages 55 and older have soared in the wake of the election to their highest level in more than fifteen years:

(Those in the prime of their working and spending years have had essentially unchanged expectations since the end of 2014.)

It’s less clear what these changes in “expectations” mean for what people will actually do, however. Consumers across the age and education distribution haven’t changed their views since the election when asked whether it’s a good or bad time to buy big-ticket items such as furniture, televisions, appliances, or cars:

By contrast, Americans seem less inclined to think “now is a good time to buy a house”. This was true across all education groups, although it is particularly severe among those who never made it past high school:

(Americans with better education seem to have appreciated that the best time to buy was when prices bottomed in 2012, and that buying has become steadily less attractive as mortgage rates and house prices have both increased.)

Americans over 35 have had more stable views on the housing market than the young. Those under 35 have become far more pessimistic about housing since 2015:

To recap:

The groups responsible for the aggregate change in sentiment are the least likely to experience big real wage increases and therefore the least likely to boost their spending. Moreover, they appear unwilling to translate their vague optimism about the future into specific expectations about behaviour.

So even if those expectations were reliable guides to the actual choices people make — something strongly debated among forecasters — there is little reason to believe the “Trump bump” in consumer sentiment is a harbinger for sharply rising real spending.

Related links:
NY Fed research implies small business expectations are mostly worthless — FT Alphaville
Global surveys or hard data – which are the fake news? — Gavyn Davies

https://ftalphaville.ft.com/2017/05/02/2188069/americas-rising-consumer-confidence-mostly-due-to-the-elderly-and-less-educated/?mhq5j=e1

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The Pronk Pops Show 906, June 7, 2017, Story 1: Will Congress Reauthorize Section 702 Foreign Intelligence Surveillance Act? Yes with changes to protect the privacy of American People. — How About Executive Order 12333 That Allow The President To Target Americans Without A Warrant — Unconstitutional and Illegal — Happens Every Day! — Oversight My Ass –Videos — Story 2: National Security Agency Under Obama Spied On American People —  Obama’s Abuse of Power — Huge Scandal Ignored By Big Lie Media — Videos — Story 3: President Trump To Nominate Christopher A. Wray For FBI Director — Videos

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The Pronk Pops Show Podcasts

Pronk Pops Show 906,  June 7, 2017

Pronk Pops Show 905,  June 6, 2017

Pronk Pops Show 904,  June 5, 2017

Pronk Pops Show 903,  June 1, 2017

Pronk Pops Show 902,  May 31, 2017

Pronk Pops Show 901,  May 30, 2017

Pronk Pops Show 900,  May 25, 2017

Pronk Pops Show 899,  May 24, 2017

Pronk Pops Show 898,  May 23, 2017

Pronk Pops Show 897,  May 22, 2017

Pronk Pops Show 896,  May 18, 2017

Pronk Pops Show 895,  May 17, 2017

Pronk Pops Show 894,  May 16, 2017

Pronk Pops Show 893,  May 15, 2017

Pronk Pops Show 892,  May 12, 2017

Pronk Pops Show 891,  May 11, 2017

Pronk Pops Show 890,  May 10, 2017

Pronk Pops Show 889,  May 9, 2017

Pronk Pops Show 888,  May 8, 2017

Pronk Pops Show 887,  May 5, 2017

Pronk Pops Show 886,  May 4, 2017

Pronk Pops Show 885,  May 3, 2017

Pronk Pops Show 884,  May 1, 2017

Pronk Pops Show 883 April 28, 2017

Pronk Pops Show 882: April 27, 2017

Pronk Pops Show 881: April 26, 2017

Pronk Pops Show 880: April 25, 2017

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Story 1: Will Congress Reauthorize Section 702 Foreign Intelligence Surveillance Act? Yes with changes to protect the privacy of American People — How About Executive Order 12333 That Allows The President To Target American Citizens Without A Warrant — Unconstitutional and Illegal — Happens Every Day! — Oversight My Ass –Videos

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FISA: 702 Collection

In 2008, Congress passed a set of updates to the Foreign Intelligence Surveillance Act (FISA), including Section 702 which authorized warrantless surveillance of non-U.S. persons reasonably believed to be outside the country. However, documents leaked by Edward Snowden revealed that 702 was being used far more heavily than many expected, serving as the legal basis for the collection of large quantities of telephone and Internet traffic  passing through the United States (and unlike 215, including content rather than just metadata). Still, as 702 only permits overseas collection, most criticism of the provision has come from abroad. But many domestic privacy advocates also worry that large amounts of American communication are being swept up “incidentally” and then used as well.

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Blunt Questions National Security Officials Regarding Russia Investigation & FISA 6/7/17

FULL: Rosenstein, Intel Chiefs Testify at Senate Hearing on President Trump and Russia Investigation

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Trump Russia Collusion Investigation, Part 1 – Senate Intelligence Committee – FISA 6/7/2017

Trump Russia Collusion Investigation, Part 2 – Senate Intelligence Committee – FISA 6/7/2017

Trump Russia Collusion Investigation, Part 3 – Senate Intelligence Committee – FISA 6/7/2017

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June 7, 2017: Sen. Cotton’s Q&A at Senate Intel Committee FISA Hearing

OPENING STATEMENT: Director of National Intelligence Dan Coats Testifies at Senate Intel Committee

Senate Russia Investigation: National security officials testify to intelligence committee on FISA

Rand Paul on Unmaskings: ‘We Can’t Live in Fear of Our Own Intelligence Community’

Rand Paul on Obama Illegally Spying on Americans | NSA Wiretapping

Section 702 of the FISA Amendments Act

FISA Hearing – Sec 702 Intel Surveillance – IMPORTANT

NSA Spying On Americans ‘Widespread’ – Let Sec. 702 Expire!

Bill Binney explodes the Russia witchhunt

Obama’s NSA conducted illegal searches on Americans for years: Report

NSA Whistleblower Bill Binney on Tucker Carlson 03.24.2017

NSA Whistleblower Bill Binney On 9/11

William Binney – The Government is Profiling You (The NSA is Spying on You)

NSA Whistleblower William Binney: The Future of FREEDOM

State of Surveillance: Police, Privacy and Technology

The Fourth Amendment Explained: US Government Review

Why We’re Losing Liberty

Sen. Rand Paul Defends the Fourth Amendment – February 11, 2014

Rand Paul Shames Homeland Security on Spying on Americans

Top Intel Community Officials Deny That Trump Pressured Them On Russia Probe

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CHUCK ROSS
Reporter

The directors of the Office of National Intelligence and the National Security Agency testified on Wednesday that they have not been pressured by President Trump on the ongoing Russia investigation, undercutting recent reports that they were.

Dan Coats, the director of national intelligence, and Adm. Mike Rogers, the director of NSA, largely declined to discuss details about their interactions with Trump when pressed on the matter during a Senate Intelligence Committee hearing.

According to news reports published last month, Trump asked both Coats and Rogers to rebut stories that Trump was under investigation as part of the Russia probe.

Both Coats and Rogers reportedly felt uncomfortable with the requests from Trump.

But when asked about those interactions on Wednesday, both declined to discuss their specific conversations with Trump while stating that they have never felt pressure from the White House.

“In the three-plus years that I have been the director of the National Security Agency, to the best of my recollection, I have never been directed to do anything that I believe to be illegal, immoral, unethical or inappropriate. And to the best of my collection … I do not recall ever feeling pressured to do so,” Rogers told Virginia Sen. Mark Warner, the vice chairman of the Senate panel.

“Did the president … ask you in any way, shape or form to back off or downplay the Russia investigation?” Warner asked.

Rogers said that he would not discuss specifics of conversations he had with Trump, but added: “I stand by the comment I just made, sir.”

Coats, a former Indiana senator who was appointed by Trump, also denied ever being pressured to downplay the Russia investigation or any other.

On Tuesday, The Washington Post reported that Coats told associates on March 22 that Trump asked him to intervene with former FBI Director James Comey to push back against the Russia investigation.

“In my time of service … I have never been pressured, I have never felt pressure, to intervene or interfere in any way, with shaping intelligence in a political way or in relationship to an ongoing investigation,” Coats testified Wednesday.

http://dailycaller.com/2017/06/07/top-intel-community-officials-deny-that-trump-pressured-them-on-russia-probe/

The Way the NSA Uses Section 702 is Deeply Troubling. Here’s Why.

MAY 7, 2014

This blog post was updated at 5:10 pm PST 5/8/14.

The most recent disclosure of classified NSA documents revealed that the British spy agency GCHQ sought unfettered access to NSA data collected under Section 702 of the FISA Amendments Act. Not only does this reveal that the two agencies have a far closer relationship than GCHQ would like to publicly admit, it also serves as a reminder that surveillance under Section 702 is a real problem that has barely been discussed, much less addressed, by Congress or the President.

In fact, the “manager’s amendment” to the USA FREEDOM Act, which passed unanimously out of the House Judiciary Committee, has weakened the minimal changes to Section 702 that USA FREEDOM originally offered. Although Representative Zoe Lofgren—who clearly understands the import of Section 702—offered several very good amendments that would have addressed these gaps, her amendments were all voted down. There’s still a chance though—as this bill moves through Congress it can be strengthened by amendments from the floor.

Section 702 has been used by the NSA to justify mass collection of phone calls and emails by collecting huge quantities of data directly from the physical infrastructure of communications providers. Here’s what you should know about the provision and why it needs to be addressed by Congress and the President:

  • Most of the discussion around the NSA has focused on the phone records surveillance program. Unlike that program, collection done under Section 702 capturescontent of communications. This could include content in emails, instant messages, Facebook messages, web browsing history, and more.
  • Even though it’s ostensibly used for foreign targets, Section 702 surveillance sweeps up the communications of Americans. The NSA has a twisted, and incredibly permissive, interpretation of targeting that includes communications about a target, even if the communicating parties are completely innocent. As John Oliver put it in his interview with former NSA General Keith Alexander: “No, the target is not the American people, but it seems that too often you miss the target and hit the person next to them going, ‘Whoa, him!'”
  • The NSA has confirmed that it is searching Section 702 data to access American’s communications without a warrant, in what is being called the “back door search loophole.”  In response to questions from Senator Ron Wyden, former NSA director General Keith Alexander admitted that the NSA specifically searches Section 702 data using “U.S. person identifiers,” for example email addresses associated with someone in the U.S.
  • The NSA has used Section 702 to justify programs in which the NSA can siphon off large portions of Internet traffic directly from the Internet backbone. These programs exploit the structure of the Internet, in which a significant amount of traffic from around the world flows through servers in the United States. In fact, through Section 702, the NSA has access to information stored by major Internet companies like Facebook and Google.
  • Section 702 is likely used for computer security operations. Director of National Intelligence James Clapper noted Section 702’s use to obtain communications “regarding potential cyber threats” and to prevent “hostile cyber activities.” Richard Ledgett, Deputy Director of NSA, noted the use of intelligence authorities to mitigate cyber attacks.
  • The FISA Court has little opportunity to review Section 702 collection. The court approves procedures for 702 collection for up to a year. This is not approval of specific targets, however; “court review [is] limited to ‘procedures’ for targeting and minimization rather than the actual seizure and searches.” This lack of judicial oversight is far beyond the parameters of criminal justice.
  • Not only does the FISA Court provide little oversight, Congress is largely in the dark about Section 702 collection as well. NSA spying defenders say that Congress has been briefed on these programs. But other members of Congress have repeatedly noted that it is incredibly difficult to get answers from the intelligence community, and that attending classified hearings means being unable to share any information obtained at such hearings. What’s more, as Senator Barbara Mikulski stated: “‘Fully briefed’ doesn’t mean that we know what’s going on.”  Without a full picture of Section 702 surveillance, Congress simply cannot provide oversight.
  • Section 702 is not just about keeping us safe from terrorism. It’s a distressingly powerful surveillance tool. While the justification we’ve heard repeatedly is that NSA surveillance is keeping us safer, data collected under Section 702 can be shared in a variety of circumstances, such as ordinary criminal investigations. For example, the NSA has shared intelligence with the Drug Enforcement Agency that has led to prosecutions for drug crimes, all while concealing the source of the data.
  • The President has largely ignored Section 702. While the phone records surveillance program has received significant attention from President Obama, in his speeches and his most recent proposal, Section 702 remains nearly untouched.
  • The way the NSA uses Section 702 is illegal and unconstitutional—and it violates international human rights law. Unlike searches done under a search warrant authorized by a judge, Section 702 has been used by the NSA to get broad FISA court authorization for general search and seizure of huge swathes of communications. The NSA says this is OK because Section 702 targets foreign citizens. The problem is, once constitutionally protected communications of Americans are swept up, the NSA says these communications are “fair game” for its use.
  • Innocent non-Americans don’t even get the limited and much abused protections the NSA promises for Americans. Under international human rights law to which the United States is a signatory, the United States must respect the rights of all persons. With so many people outside the United States keeping their data with American companies, and so much information being swept up through mass surveillance, that makes Section 702 the loophole for the NSA to violate the privacy rights of billions of Internet users worldwide.

The omission of Section 702 reform from the discourse around NSA surveillance is incredibly concerning, because this provision has been used to justify some of the most invasive NSA surveillance. That’s why EFF continues to push for real reform of NSA surveillance that includes an end to Section 702 collection. You can help by educating yourself and engaging your elected representatives. Print out our handy one-page explanation of Section 702. Contact your members of Congress today and tell them you want to see an end to all dragnet surveillance, not just bulk collection of phone records.

https://www.eff.org/deeplinks/2014/05/way-nsa-uses-section-702-deeply-troubling-heres-why

 

By ZACK WHITTAKER CBS NEWS June 30, 2014, 4:02 PM
Legal loopholes could allow wider NSA surveillance, researchers say
CBS NEWS

NEW YORK — Secret loopholes exist that could allow the National Security Agency to bypass Fourth Amendment protections to conduct massive domestic surveillance on U.S. citizens, according to leading academics.

The research paper released Monday by researchers at Harvard and Boston University details how the U.S. government could “conduct largely unrestrained surveillance on Americans by collecting their network traffic abroad,” despite constitutional protections against warrantless searches.

One of the paper’s authors, Axel Arnbak of Harvard University’s Berkman Center for Internet & Society, told CBS News that U.S. surveillance laws presume Internet traffic is non-American when it is collected from overseas.

“The loopholes in current surveillance laws and today’s Internet technology may leave American communications as vulnerable to surveillance, and as unprotected as the internet traffic of foreigners,” Arnbak said.

Although Americans are afforded constitutional protections against unwarranted searches of their emails, documents, social networking data, and other cloud-stored data while it’s stored or in-transit on U.S. soil, the researchers note these same protections do not exist when American data leaves the country.

Furthermore, they suggest that Internet traffic can be “deliberately manipulated” to push American data outside of the country. Although the researchers say they “do not intend to speculate” about whether any U.S. intelligence agencies are actually doing this, they say it could provide a loophole for vacuuming up vast amounts of U.S. citizen data for intelligence purposes, thus “circumventing constitutional and statutory safeguards seeking to protect the privacy of Americans,” they warned.

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Snowden: NSA programs “uncontrolled and dangerous”
The academic paper lands just over a year since the Edward Snowden revelations first came to light, outlining the massive scope of U.S. government surveillance, under the justification of preventing terrorism. Although the classified programs that make up the NSA’s data acquisition arsenal have only recently been disclosed over the past year, the laws that govern them have been under close scrutiny for years. The paper only adds fuel to the fire of the intelligence agency’s alleged spying capabilities, which have been heavily criticized by civil liberties and privacy groups alike.

“The fix has to come from the law — the same laws that apply to Internet traffic collected domestically should also apply to traffic that is collected abroad,” the paper’s co-author, Sharon Goldberg of Boston University’s Computer Science Department, said.

While the researchers do not say whether these loopholes are being actively exploited — saying their aim is solely to broaden the understanding of the current legal framework — the current legislation as it stands “opens the door for unrestrained surveillance,” they write.

Since the September 11 terrorist attacks, the subsequent introduction of the Patriot Act allowed certain kinds of data to be collected to help in the fight against terrorism — so-called “metadata,” such as the time and date of phone calls and emails sent, including phone numbers and email addresses themselves. But the contents of those phone calls or emails require a warrant. The classified documents leaked by Edward Snowden showed that while the public laws have been in effect for years or even decades, the U.S. government has used secret and classified interpretations of these laws for wider intelligence gathering outside the statutes’ text.

The Obama administration previously said there had been Congressional and Judicial oversight of these surveillance laws — notably Section 215 of the Patriot Act, which authorized the collection of Americans’ phone records; and Section 702 of the Foreign Intelligence Surveillance Act (FISA), which authorized the controversial PRISM program to access non-U.S. residents’ emails, social networking, and cloud-stored data.

But the researchers behind this new study say that the lesser-known Executive Order (EO) 12333, which remains solely the domain of the Executive Branch — along with United States Signals Intelligence Directive (USSID) 18, designed to regulate the collection of American’s data from surveillance conducted on foreign soil — can be used as a legal basis for vast and near-unrestricted domestic surveillance on Americans.

The legal provisions offered under EO 12333, which the researchers say “explicitly allows for intentional targeting of U.S. persons” for surveillance purposes when FISA protections do not apply, was the basis of the authority that reportedly allowed the NSA to tap into the fiber cables that connected Google and Yahoo’s overseas to U.S. data centers.

An estimated 180 million user records, regardless of citizenship, were collected from Google and Yahoo data centers each month, according to the leaked documents. The program, known as Operation MUSCULAR, was authorized because the collection was carried out overseas and not on U.S. soil, the researchers say.

The paper also said surveillance can also be carried out across the wider Internet by routing network traffic overseas so it no longer falls within the protection of the Fourth Amendment.

However, an NSA spokesperson denied that either EO 12333 or USSID 18 “authorizes targeting of U.S. persons for electronic surveillance by routing their communications outside of the U.S.,” in an emailed statement to CBS News.

“Absent limited exception (for example, in an emergency), the Foreign Intelligence Surveillance Act requires that we get a court order to target any U.S. person anywhere in the world for electronic surveillance. In order to get such an order, we have to establish, to the satisfaction of a federal judge, probable cause to believe that the U.S. person is an agent of a foreign power,” the spokesperson said.

The report highlights a fundamental fact about Internet traffic: Data takes the quickest route possible rather than staying solely within a country’s borders. Data between two U.S. servers located within the U.S. can still sometimes be routed outside of the U.S.

Although this is normal, the researchers warn data can be deliberately routed abroad by manipulating the Internet’s core protocols — notably the Border Gateway Protocol (BGP), which determines how Internet traffic is routed between individual networks; and the Domain Name Service (DNS), which converts website addresses to numerical network addresses.

If the NSA took advantage of the loophole by pushing Internet traffic outside of the U.S., it would have enough time to capture the data while it is outside the reach of constitutional protection.

The researchers rebuffed the NSA’s statement in an email: “We argue that these loopholes exist when surveillance is conducted abroad and when the authorities don’t ‘intentionally target a U.S. person’. There are several situations in which you don’t ‘target a U.S. person’, but Internet traffic of many Americans can in fact be affected.”

“We cannot tell whether these loopholes are exploited on a large scale, but operation MUSCULAR seems to find its legal and technical basis in them.”

Mark M. Jaycox, a legislative analyst at the Electronic Frontier Foundation (EFF), said: “If you are intentionally spying on a U.S. person, the government must go to the FISA Court,” he said. “That’s the way the law is supposed to operate.”

Describing how the NSA says it never “intentionally collects” U.S. information, he warned the agency’s foreign data dragnet would inevitably include U.S. data.

“The NSA is an intelligence organization — it’s going to be targeting foreigners. But it’s the way that its targeting millions of foreigners, and millions of foreign communications that will eventually pick up U.S. persons’ data and information. And once that data has been collected, it must be destroyed.”

“It’s a question the NSA can’t reconcile, so they lean heavily on saying they never ‘intentionally collect’ the U.S. person information,” he said

A recent primer on EO 12333 written by the privacy group said the order “mandates rules for spying… on anyone within the United States.” The group also notes because the order remains inside the Executive Branch, the Obama administration could “repeal or modify” it at will.

The American Civil Liberties Union said in a post on its website that the U.S. government interprets USSID 18 to “permit it to sweep up Americans’ international communications without any court order and with little oversight.”

Patrick Toomey, staff attorney at the American Civil Liberties Union’s National Security Project, said: “Today, Americans’ communications increasingly travel the globe — and privacy protections must reliably follow. This academic paper raises key questions about whether our current legal regime meets that standard, or whether it allows the NSA to vacuum up Americans’ private data simply by moving its operations offshore.”

He added that there should be a uniform set of laws that protect Americans’ privacy regardless of where they are in the world, and that Congressional oversight of all rules governing surveillance is needed for comprehensive reforms.

The ACLU has also filed a Freedom of Information lawsuit with a federal court in New York, questioning “whether it [EO 12333] appropriately accommodates the constitutional rights of American citizens and residents whose communications are intercepted in the course of that surveillance.”

Although there is no direct evidence yet to suggest the NSA has exploited this loophole, network monitoring firm Renesys observed two “route hijacking” events in June and November 2013 that led Internet traffic to be redirected through Belarus and Iceland on separate occasions. These events are virtually unnoticeable to the ordinary Internet user, but the side effect is that U.S. data may be readable by foreign governments traveling through their country’s infrastructure. It also could allow the NSA to capture that data by treating it as foreign data.

These legal and technical loopholes can allow “largely unrestrained surveillance on Americans communications,” the researchers wrote.

The NSA, whose job it is to produce intelligence from overseas targets, said for the first time in August 2013 that it derives much of its “foundational authority” for its operations from EO 12333. Recent Snowden disclosures shed new light on understanding the capabilities of the executive order.

It was also recently revealed that Snowden himself questioned the legal authority of EO 12333, according to one declassified email exchange released by the Director of National Intelligence James Clapper.

According to John Schindler, a former NSA chief analyst, speaking to The Washington Post in October, the sole aim of the NSA’s “platoon” of lawyers’ is to figure out “how to stay within the law and maximize collection by exploiting every loophole.”

“It’s fair to say the rules are less restrictive under [EO] 12333 than they are under FISA,” he added.

FISA expanded the NSA’s powers allowing it to obtain foreign intelligence — including economic and political surveillance of foreign governments, companies, news outlets and citizens. But the amended law in 2008 also restricted what can be collected on U.S. citizens.

The so-called “targeting” and “minimization” procedures, which remain classified but were reported as a result of the Snowden leaks, were introduced to ensure any data inadvertently collected on U.S. citizens from overseas would not be used in investigations. These were later criticized following subsequent leaks which suggested the rules on collecting U.S. persons’ data were more relaxed than the statute led the public to believe.

U.S. intelligence agencies can only do so much with U.S. data, therefore they have a “strong incentive to conduct surveillance abroad,” the researchers say, because legal protections under the Fourth Amendment and FISA do not apply outside U.S. territory.

“Programs under EO 12333 may collect startling amounts of sensitive data on both foreigners and Americans,” the paper summarizes, “without any meaningful congressional or judiciary involvement.”

http://www.cbsnews.com/news/legal-loopholes-could-let-nsa-surveillance-circumvent-fourth-amendment-researchers-say/

 

FISA Authority and Blanket Surveillance: A Gatekeeper Without Opposition

Vol. 40 No. 3

The author is with ZwillGen PLLC in Washington, D.C.

Surveillance and espionage were once practices ordinary Americans only read about in novels or saw in movie theaters. That is no longer true. America is at the center of a worldwide communications network. It is home to the world’s most popular telecommunications, email, instant message, and video chat providers. Because of America’s unique role, hundreds of millions of users send communications through American soil. At the same time, America’s enemies have grown from nation-states, like the Soviet Union, to small cells of terrorists that use ordinary communications networks. Taken together, it is not surprising that signals intelligence agencies like the National Security Agency (NSA), which intercept and analyze these signals, would seek and use surveillance powers to conduct more surveillance at home.

Part of this new regime means that more legal process to gather intelligence is being served on companies in the United States. Recent revelations have declassified documents describing the NSA’s broad “collect now, search later” approach to surveillance. This means that some electronic communications providers, and their in-house and outside counsel, are faced with new forms of legal process. But unlike criminal process, which is rooted in a large body of publicly available case law and which often comes to light in the course of criminal trials, this new process comes to these providers in secret. As documents recently declassified by the director of national intelligence demonstrate, the government has served a number of different kinds of orders on providers—each of whom must assess when and how they might comply with or challenge those orders.

My firm and I represented one such provider in In re Directives [Redacted] Pursuant to Section 105B of the Foreign Intelligence Surveillance Act [Redacted], 551 F.3d 1004 (FISA Ct. Rev. 2008). That case presented a challenge that more providers may face as the NSA explores its surveillance capabilities. The provider received process known as a 105B directive (which is now called a 702 directive) starting in 2007. In contrast with typical criminal process, there was no prior court review or approval of particular surveillance targets. Instead, a 702 directive, like the one served on that provider, approved of the government’s procedure for conducting surveillance—not its targets.

 

Faced with this process, the provider had to make decisions about how it could respond. The provider chose not to comply with the process, and the government filed a motion to compel in the Foreign Intelligence Surveillance Court (FISC), a secret court charged with reviewing and approving some types of surveillance.

The course of that litigation proved complex. The Foreign Intelligence Surveillance Court of Review (FISCR), which handles appeals from the FISC, had published a single opinion before the In re Directives case, and while the lower court, the FISC, had rules for proceedings, there were no publicly available decisions on which to rely in litigating the procedural aspects of the case. The merits of the case too were litigated in the dark. No docket was made available, and there was no public mention of the case until after it was appealed and the FISCR entered its decision. Some documents related to the case are still being declassified, but in the words of the FISCR’s declassified decision, there was “multitudinous briefing” in the FISC and ample briefing on appeal.

The FISCR released its opinion in In re Directives in 2009, and a beam of light shone on its decisions for the first time in seven years. But then the FISC went dark again. In late 2013, however, the director of national intelligence, in response to increased public pressure seeking information on surveillance activities, began releasing more FISC opinions that are instructive on how the FISC operates and how it has been interpreting the Fourth Amendment and process under the Foreign Intelligence Surveillance Act, 50 U.S.C. § 1801 et seq. (FISA) in the intervening years, giving much needed guidance to providers and outside counsel.

 

The History of FISA

Understanding how to advise clients faced with FISA process, the challenges they face, and how to revise FISA to address public concerns about the NSA’s “collect now, search later” surveillance requires some history, legal analysis, and creative thinking. FISA’s history provides context for the reforms needed to adjust the balance between surveillance and privacy. Current events provide information about the extent of the problem. And creative thinking is required to create solutions.

FISA occupies an uneasy place. It resides where intelligence gathering meets the Fourth Amendment. FISA addresses the problem of how, and when, the government can conduct surveillance for intelligence-gathering purposes on United States soil. Over time, Congress has addressed this delicate balance by amending FISA to expand and contract surveillance capabilities. Today, FISA provides a comprehensive set of procedures for obtaining and using “foreign intelligence information” within the United States.

Before Congress passed FISA in 1978, there were no clear rules for when the executive branch could conduct clandestine surveillance for foreign intelligence purposes. Prior to FISA, every president since at least 1931 used surveillance to protect national security interests—even when no law specifically allowed that surveillance. See Sen. Rep. No. 94-755 (1976), Book III, Supplementary Detailed Staff Reports on Intelligence Activities and the Rights of Americans [hereinafter Church Report], available at www.intelligence.senate.gov/pdfs94th/94755_III.pdf. Presidents justified this surveillance by pointing to their role as commander-in-chief combined with their duty and authority to execute the laws of the United States. U.S. Const. art. II, § 1, § 2, cl. 1; see Church Report, supra, at 279.

This power remained relatively untested until the seminal case United States v. U.S. District Court for Eastern District of Michigan, Southern Division, 407 U.S. 297 (1972), also known as the Keith case. There, the government prosecuted three individuals for conspiring to bomb an office of the Central Intelligence Agency in Ann Arbor, Michigan. The Keith defendants moved to compel the government to disclose electronic surveillance information the government collected without first getting a warrant. The attorney general argued the surveillance satisfied the Fourth Amendment because it was necessary “to gather intelligence information deemed necessary to protect the nation from attempts of domestic organizations to attack and subvert the existing structure of the Government.” Id. at 300. The Supreme Court found that the government must get a warrant before engaging in domestic surveillance, but limited its opinion to “domestic aspects of national security” and stated that it “express[ed] no opinion as to the issues which may be involved with respect to activities of foreign powers or their agents.” Id. at 321. Keith changed the landscape of domestic surveillance, but lower courts struggled to decide when surveillance required a warrant and when surveillance fell outside Keith’s holding; as a result, they increasingly invalidated surveillance. See Zweibon v. Mitchell, 516 F.2d 594, 651 (D.C. Cir. 1975).

Faced with this uncertainty and the revelations about warrantless surveillance, the Senate created the Church Committee to investigate the executive branch’s use of warrantless surveillance. The committee’s report provided revelations much like those that are coming to light today as a result of Edward Snowden’s leaks. The committee’s report, which is actually 14 separate reports regarding intelligence abuses, provides one of the most extensive, in-depth examinations of the use and abuse of surveillance powers in the United States. The Church Report revealed that from the early 1960s to 1972, the NSA targeted certain Americans’ international communications by placing their names on a watch list. It contended that intercepting these Americans’ communications was part of monitoring programs it was conducting against international communications channels. As is the case in news reports today, “to those Americans who have had their communications—sent with the expectation that they were private—intentionally intercepted and disseminated by their Government, the knowledge that NSA did not monitor specific communications channels solely to acquire their message is of little comfort.” Church Report, supra, at 735.

History tends to repeat itself. Today, newspapers have reported that the NSA engages in bulk telephone records surveillance using the “Business Records” provision in section 215 of FISA (50 U.S.C. § 1861). This bulk surveillance, however, isn’t anything new. The Church Report provides shockingly similar revelations about the NSA’s Operation SHAMROCK. Much like recent revelations about today’s bulk records collection, Operation SHAMROCK, which lasted all the way from August 1945 until May 1975, collected millions of telegrams leaving or transiting the United States and monitored certain telephone links between the United States and South America. As part of this monitoring, the NSA intercepted Americans’ international communications and disseminated those communications to other intelligence agencies. In doing so, the NSA “never informed the companies that it was analyzing and disseminating telegrams of Americans.” Unlike today, however, “the companies, who had feared in 1945 that their conduct might be illegal, apparently never sought assurances that NSA was limiting its use to the messages of foreign targets once the intercept program had begun.” Church Report, supra, at 740–41.

The NSA discontinued SHAMROCK in 1975, but it still incidentally collected Americans’ communications—much like it does (to a lesser extent) today. The Church Committee described the NSA’s “initial interception of a stream of communications” as “analogous to a vacuum cleaner.” “NSA picks up all communications carried over a specific link that it is monitoring. The combination of this technology and the use of words to select communications of interest results in NSA analysts reviewing the international messages of American citizens, groups, and organizations for foreign intelligence.” Id. at 741. This is eerily similar to the FISC’s description of bulk records collection as recently as October 2011, in which it stated “that NSA has acquired, is acquiring, and . . . will continue to acquire tens of thousands of wholly domestic communications,” Redacted, slip op. at 33 (FISA Ct. Oct. 3, 2011), because it intercepts all communications over certain Internet links it is monitoring and is “unable to exclude certain Internet transactions.” Id. at 30.

 

Purposes of FISA

That history tells us where FISA comes from and the problems Congress was trying to solve. Congress had two main goals: provide some oversight where there was none, and draw clear lines so that law enforcement would know when it could use foreign intelligence process and when it had to follow ordinary criminal process. To address these goals, FISA contains two important parts. First, it established a framework for judicial review by creating the Foreign Intelligence Surveillance Court and the Foreign Intelligence Surveillance Court of Review. It also created a new FISA process to replace criminal process such as warrants, subpoenas, surveillance orders, and pen register/trap and trace orders. The FISA versions of each of these has less stringent requirements for the government to satisfy than criminal process. See 50 U.S.C. § 1801–12 (electronic surveillance equivalent to Title III orders), 50 U.S.C. § 1821–29 (physical searches like search warrants), 50 U.S.C. § 1841–46 (pen registers and trap-and-trace devices), 50 U.S.C. § 1861–62 (business records like grand jury subpoenas).

Second, FISA addressed when law enforcement can and cannot use these FISA processes to conduct surveillance or gather evidence. As it was originally enacted, law enforcement could obtain FISA process, rather than criminal process, when the “primary purpose” of surveillance was to gather foreign intelligence information. At the same time, Congress explicitly excluded activities conducted abroad from FISA’s reach. It also did not provide protection for U.S. citizens when they left the United States. See H.R. Rep. No. 95–1283, at 51 (1978).

To fill in the gaps FISA left and to provide rules of executive branch intelligence agencies, President Reagan issued Executive Order 12,333, United States Intelligence Activities (46 Fed. Reg. 59,941 (Dec. 4, 1981)). That order (as amended) remains the basis for executive branch surveillance for foreign intelligence purposes. What is important is that the order sets forth procedures that apply where FISA did not, specifically for surveillance of United States persons located abroad. Id. § 2.5.

Foreign intelligence gathering continued under FISA and Executive Order 12,333 for nearly two decades without major revision or challenge, until the attacks of September 11, 2001. Following 9/11, Congress passed the USA Patriot Act, which amended FISA by expanding law enforcement authority and lowering the standards required to obtain surveillance authority. Pub. L. No. 107–56 (H.R. 3162), 115 Stat. 272 (2001). The act eliminated the “primary purpose” test and replaced it with a “significant purpose” test. Id. § 218. The “primary purpose” test led law enforcement to create a wall between agencies that engaged in criminal prosecutions (such as parts of the Federal Bureau of Investigation and the Department of Justice) and agencies that primarily engaged in foreign intelligence gathering (such as the NSA). One of the problems identified in the aftermath of 9/11 was a reluctance to share information because of this “primary purpose” rule—and the fear that doing so could put surveillance or criminal prosecutions at risk.

In a rare published decision (there have been only two), the FISCR upheld the “significant purpose” test in In re Sealed Case, 310 F.3d 717 (FISA Ct. Rev. 2002). The FISC court had found that the “significant purpose” standard was lower than the “primary purpose” standard but that the Fourth Amendment did not require more. The court concluded that the procedures and government showings required under FISA, even if they do not meet the warrant requirement, come close enough that FISA as amended by the Patriot Act meets the balancing test between Fourth Amendment rights and the need to protect against national security threats. In re Sealed Case would prove to be a launching point for reconciling FISA with the Fourth Amendment and for chipping away at the warrant requirement for foreign intelligence-gathering purposes.

In December 2005, a New York Times article revealed a warrantless domestic wiretapping program, the Terrorist Surveillance Program (TSP), in which the NSA was allowed to eavesdrop on communications where at least one party was not a United States person. According to reports, technical glitches resulted in some “purely domestic” communications being subject to surveillance. The surveillance was based on a 2002 executive order that allowed the NSA to monitor international email messages and international telephone calls transmitted by communications networks based in the United States—surveillance that was outside the scope of review in In re Sealed Case. That executive order claimed that FISA’s warrant requirements were implicitly superseded by the passage of the congressional resolution authorizing the use of military force against terrorists and that the president’s inherent authority under Article II of the Constitution to conduct foreign surveillance trumped FISA.

A group of plaintiffs sought to challenge the TSP in American Civil Liberties Union v. National Security Agency, 438 F. Supp. 2d 754 (E.D. Mich. 2006). The district court ruled that the surveillance violated the Fourth Amendment, finding that the TSP was implemented without regard to the Fourth Amendment or to FISA, and thus violated FISA, the standards of Title III, and the Fourth Amendment. On appeal, however, the Sixth Circuit dismissed the case, finding that the plaintiffs lacked standing to challenge the TSP because they had not alleged that they were the actual victims of warrantless surveillance. ACLU v. NSA, 493 F.3d 644 (6th Cir. 2007); see also Clapper v. Amnesty Int’l, 133 S. Ct. 1138 (2013).

The Protect America Act of 2007

Following the public outcry in response to the New York Times article and the ACLU decision, the Bush administration proposed the Protect America Act of 2007 (PAA), Pub. L. No. 110-55, 121 Stat. 552, which was designed to address surveillance of communications facilities located in the United States that transmit communications between individuals both of whom are located abroad. PAA § 105A. Again, just as in 1978, the government needed more guidance on when FISA applied and when the executive branch was free of its requirements. The PAA addressed a new problem: capturing wholly foreign communications on U.S. soil. In the past, to capture foreign communications between non-U.S. persons, the government simply implemented surveillance on foreign communications networks, which are not subject to restrictions imposed by the Fourth Amendment or any statute. Now that foreign communications could be transferred within the United States and the TSP’s constitutionality had been called into doubt, the intelligence community required a new tool to continue that surveillance. The PAA, by providing a number of procedures to conduct surveillance of targets outside the United States, and in an attempt to avoid resort to traditional warrants and Title III orders, implemented a system of internal controls at the NSA as well as overarching review of policies and procedures by the FISC. The PAA was a stopgap measure, to preserve some aspects of warrantless surveillance of foreign communications transmitted within the United States while Congress worked to overhaul FISA.

Notably, the PAA, like the Patriot Act, again changed the test of when the FISA process does and does not apply. The PAA changed the focus from the identity of the party targeted to whether a party was present in the United States. This change made it much simpler for the attorney general and the director of national intelligence to approve surveillance—rather than certifying that both parties to the communication were foreign powers or agents of foreign powers, they now only had to certify that the target of the surveillance was located outside the United States. Under the PAA, the director of national intelligence and the attorney general could permit, for up to one year, “the acquisition of foreign intelligence information concerning persons reasonably believed to be outside the United States” if they determined that the acquisition met five specified criteria and the minimization procedures for that surveillance were approved by the FISC. PAA § 105B. In practical terms, the government could serve providers with orders that the FISC approved, and then name the targets of surveillance later.

One provider, Yahoo, challenged this in In re Directives [Redacted] Pursuant to Section 105B of the Foreign Intelligence Surveillance Act [Redacted], 551 F.3d 1004 (FISA Ct. Rev. 2008). In that case, the government revealed that it not only complied with the PAA but also voluntarily complied with Executive Order 12,333, 46 Fed. Reg. 59,941, 59,951 (Dec. 4, 1981), which taken together mean that the certifications at issue “permit surveillances conducted to obtain foreign intelligence for national security purposes when those surveillances are directed against foreign powers or agents of foreign powers reasonably believed to be located outside the United States.” In re Directives, 551 F.3d at 1008. The court upheld these warrantless searches, finding that because the purpose of the surveillance was to gather foreign intelligence information, it fell under a “foreign intelligence exception to the Fourth Amendment’s warrant requirement” so long as it was directed against foreign powers or agents of foreign powers reasonably believed to be located outside the United states. Id. at 1012.

The court also found that the searches were reasonable because they complied with Executive Order 12,333, which required probable cause to believe that an individual is outside the United States and a finding that such surveillance was necessary, and which limited the duration of the surveillance and thus contained sufficient protections to avoid risk of mistake or executive branch misconduct.

The PAA was a stopgap measure and was eventually replaced by the FISA Amendments Act of 2008 (FAA), Pub. L. No. 110-261, § 403, 122 Stat. 2436, 2473. The FAA repealed the most troublesome provision of the PAA, which provided for warrantless surveillance of foreign intelligence targets “reasonably believed” to be outside the United States, even if they were U.S. persons, by adding a new section to FISA entitled “Additional Procedures Regarding Certain Persons Outside the United States.” Much of this section enshrines the protections present in Executive Order 12,333’s treatment of U.S. persons that the court relied on in In re Sealed Case and In re Directives to uphold the surveillance of United States persons located abroad.

The FAA again addressed the question of when FISA applies via a complicated web of procedures and processes for each category of target subject to surveillance: individuals outside the country that are not “U.S. Persons” (section 1881a), acquisitions inside the country targeting U.S. persons outside the country (section 1881b), and U.S. persons outside the country (section 1881c). Different processes are required for each type of target, but in a nutshell, U.S. persons receive slightly more protection. The most important change is that there is no prior judicial review of surveillance conducted in the United States that targets non-U.S. persons located outside the United States. FAA § 1881a. To conduct surveillance of U.S. persons outside the United States, however, the government must first obtain FISC approval of the particular targets. FAA § 1881b.

 

Time to Address Problems

FISA’s history and current events demonstrate that we are at a point in the cycle where it is again time to address the two basic questions: How do we provide oversight of intelligence-gathering activities? And when does this oversight apply? FISA, from a textual perspective, provides the government with far-reaching authority for surveillance and specific process for each type of surveillance it may want to conduct, but the public was relatively unaware of how the government used that authority until Edward Snowden leaked classified documents in late 2013 providing some detail on the NSA’s use of surveillance activities. In response, the government has begun declassifying a wealth of FISC decisions, letters to Congress, and other information regarding the NSA’s use of FISA authorities. A detailed analysis of these opinions could lead to a new report as voluminous as the Church Committee’s reports, but even a high-level analysis provides some context for moving forward.

The recently released opinions—such as Redacted, LEXIS 157706 (FISA Ct. Oct. 3, 2011), and Redacted II, LEXIS 157706 (FISA Ct. Nov. 30, 2011)—confirm what appeared to be the case in In re Directives, that the FISC has adopted an exception to the warrant requirement for foreign intelligence gathering—particularly where the government seeks communications that are not wholly domestic. In those cases, despite finding that the NSA knowingly collected wholly domestic communications that had nothing to do with foreign intelligence, the FISC generally approved most of the government’s targeting and minimization procedures. On a bad set of facts for the government, the FISC held that only a small part of the NSA’s surveillance program was unconstitutional and only because the NSA did not make enough of an effort to delete wrongly collected communications—a problem the NSA soon remedied. Redacted II, LEXIS 157705 (FISA Ct. Nov. 30, 2011).

The window left open in Keith seems to be closed. Similarly, the FISC has approved of the NSA’s “collect now, restrict searching later” approach to minimization. See In re Application of the F.B.I. for an Order Requiring the Production of Tangible Things from [Redacted], No. BR 13-109, LEXIS 134786 (FISA Ct. Sept. 13, 2013). In other words, the FISC has found no constitutional or statutory impediment to the government “over collecting” data—so long as it does not intentionally collect wholly domestic communications and it has minimization procedures to restrict access. There is no indication that the government has used its surveillance powers improperly (except in a limited number of circumstances attributable to NSA employee misconduct), but the FISC has not taken a robust view of the Fourth Amendment.

As was the case back in the late 1970s, the American public has reacted to executive surveillance activities—some of which are eerily similar to the NSA’s use of surveillance authority in the mid– to late 1970s. And as was the case in the late 1970s, it may again be time for Congress to take action. The problems remain quite similar to those Congress faced in 1978: provide oversight where there is none, or where it is inadequate, and make clear when the government can, and cannot, use different types of FISA process.

In late 2013, numerous members of Congress began proposing bills to reform FISA and provide new protections. See Mark M. Jaycox, “Cheat Sheet to Congress’ NSA Spying Bills,” Elec. Frontier Found. (Sept. 11, 2013), http://www.eff.org/deep links/2013/08/effs-cheat-sheet. Given the heated nature of the current debate, it is likely that the particular content of these bills will change daily, and summarizing their particularities is best left to blogs. Still, the bills generally fall into two categories: increasing transparency and restructuring the process. A few bills address bulk collection of records under section 215, but none takes a comprehensive approach to changing the question of when FISA applies and when it does not.

The current system of checks and balances under the FAA is simply not enough. It’s not because of a lack of desire by the providers to defend their users. Unlike the telephone and telegraph companies that did not act to end NSA spying in the Operation SHAMROCK era, providers today are taking a much more active role in the process. Yahoo challenged the FISA process in 2008, interest groups have filed actions seeking information about surveillance practices, and now providers have brought declaratory judgment actions seeking to reveal more information about surveillance process they receive.

One of the pending bills, Senator Blumenthal’s FISA Court Reform Act of 2013, Senate Bill 1460 and Senate Bill 1467, provides an answer that, having had the experience of litigating before the FISC myself, I believe could provide much needed improvements. That bill provides for a new Office of the Special Advocate, which introduces an adversary to the court. (This is similar to the public privacy advocate that President Obama recently proposed.) The act attempts to solve a basic problem with the current oversight procedures: There is no true adversarial process for most of the legal issues that arise. The newly declassified opinions the director of national intelligence has released make this abundantly clear. Setting aside the legal arguments, the procedural history of the opinions indicates delays on the government’s part, a lack of supervision after the court issues its orders, and a preference for secrecy over public disclosure at any cost. Appointing a special advocate ad litem for the public would ensure that novel legal arguments in the FISA court would face a consistent, steady challenge no matter who the provider is, thereby strengthening the FISA process by subjecting results to checks and balances.

Without such a process, the court and the Department of Justice must work through difficult legal issues with no balancing input. An advocate could participate in all cases involving a new statute or authority or a new interpretation or application of an existing authority. The special advocate could choose the cases in which to be involved, or the court or a provider that receives process could request its involvement where an opposition would be useful to test and evaluate the government’s legal arguments. The special advocate’s office could be established with proper security safeguards to draft, store, and access classified records more efficiently. It could also be required to report to the public and Congress the number of cases it has argued and how often it has limited or pared back the government’s requests. It would provide a vital counterpoint for legislators exercising their oversight duties.

The special advocate would be especially useful in cases in which the government demands access to communications in a way that may have a profound effect on people other than the target, such as when decryption may be involved or when a provider is asked to provide assistance in ways that are unlike traditional wiretaps.

Providing for an advocate in front of the court would also resolve several problems for companies and individuals faced with receiving FISA process or having evidence gathered using that process used against them. The statutory process as it stands now does not necessarily provide for complete transparency or a level playing field for the provider. As the published decision in In re Directives makes clear, a phalanx of 11 government lawyers, including the acting solicitor general of the United States, was involved in defending the statute. The decision also shows that some of the documents relied on by the court of review were classified procedures submitted as part of an ex parte appendix that remains sealed. 551 F.3d at 1013–14.

If an advocate were present in other matters before the FISC, the government and court would be more likely to provide more public information on what challenges have and have not been successful. Public access would also provide litigators with a much greater opportunity to use those challenges in advising and defending their clients. The FISC’s decisions may or may not have been correct, depending on your view, but the secrecy employed up to this point erodes the safeguards built into our adversarial court system. The presence of an advocate would help to ensure that the government cannot continue to keep new opinions classified, unless it is truly in the interest of national security to do so.

Revising FISA is no easy task, and analyzing and responding to the FISA process presents thorny questions. There is one constant throughout the history of surveillance, as was the case in the Church Report and as is the case today with news reports about NSA surveillance: The government will use the surveillance power it is given to its fullest. This article does not opine on when that is and is not appropriate. America’s long history of surveillance and current events demonstrate a need to revise the process and take a hard look at whether courts have the tools to oversee executive branch surveillance and when the executive branch should be allowed to use foreign intelligence procedures. Introducing an advocate to test the government’s theories and surveillance in every case—even the ones it brings ex parte—would go a long way toward ensuring that the American public is not shocked again.

https://www.americanbar.org/publications/litigation_journal/2013-14/spring/fisa_authority_and_blanket_surveillance_gatekeeper_without_opposition.html

Meet Executive Order 12333: The Reagan rule that lets the NSA spy on Americans

July 18, 2014

John Napier Tye served as section chief for Internet freedom in the State Department’s Bureau of Democracy, Human Rights and Labor from January 2011 to April 2014. He is now a legal director of Avaaz, a global advocacy organization.

In March I received a call from the White House counsel’s office regarding a speech I had prepared for my boss at the State Department. The speech was about the impact that the disclosure of National Security Agency surveillance practices would have on U.S. Internet freedom policies. The draft stated that “if U.S. citizens disagree with congressional and executive branch determinations about the proper scope of signals intelligence activities, they have the opportunity to change the policy through our democratic process.”

But the White House counsel’s office told me that no, that wasn’t true. I was instructed to amend the line, making a general reference to “our laws and policies,” rather than our intelligence practices. I did.

Even after all the reforms President Obama has announced, some intelligence practices remain so secret, even from members of Congress, that there is no opportunity for our democracy to change them.

Public debate about the bulk collection of U.S. citizens’ data by the NSA has focused largely on Section 215 of the Patriot Act, through which the government obtains court orders to compel American telecommunications companies to turn over phone data. But Section 215 is a small part of the picture and does not include the universe of collection and storage of communications by U.S. persons authorized under Executive Order 12333.

From 2011 until April of this year, I worked on global Internet freedom policy as a civil servant at the State Department. In that capacity, I was cleared to receive top-secret and “sensitive compartmented” information. Based in part on classified facts that I am prohibited by law from publishing, I believe that Americans should be even more concerned about the collection and storage of their communications under Executive Order 12333 than under Section 215.

Bulk data collection that occurs inside the United States contains built-in protections for U.S. persons, defined as U.S. citizens, permanent residents and companies. Such collection must be authorized by statute and is subject to oversight from Congress and the Foreign Intelligence Surveillance Court. The statutes set a high bar for collecting the content of communications by U.S. persons. For example, Section 215 permits the bulk collection only of U.S. telephone metadata — lists of incoming and outgoing phone numbers — but not audio of the calls.

Executive Order 12333 contains no such protections for U.S. persons if the collection occurs outside U.S. borders. Issued by President Ronald Reagan in 1981 to authorize foreign intelligence investigations, 12333 is not a statute and has never been subject to meaningful oversight from Congress or any court. Sen. Dianne Feinstein (D-Calif.), chairman of the Senate Select Committee on Intelligence, has said that the committee has not been able to “sufficiently” oversee activities conducted under 12333.

Unlike Section 215, the executive order authorizes collection of the content of communications, not just metadata, even for U.S. persons. Such persons cannot be individually targeted under 12333 without a court order. However, if the contents of a U.S. person’s communications are “incidentally” collected (an NSA term of art) in the course of a lawful overseas foreign intelligence investigation, then Section 2.3(c) of the executive order explicitly authorizes their retention. It does not require that the affected U.S. persons be suspected of wrongdoing and places no limits on the volume of communications by U.S. persons that may be collected and retained.

“Incidental” collection may sound insignificant, but it is a legal loophole that can be stretched very wide. Remember that the NSA is building a data center in Utah five times the size of the U.S. Capitol building, with its own power plant that will reportedly burn $40 million a year in electricity.

“Incidental collection” might need its own power plant.

A legal regime in which U.S. citizens’ data receives different levels of privacy and oversight, depending on whether it is collected inside or outside U.S. borders, may have made sense when most communications by U.S. persons stayed inside the United States. But today, U.S. communications increasingly travel across U.S. borders — or are stored beyond them. For example, the Google and Yahoo e-mail systems rely on networks of “mirror” servers located throughout the world. An e-mail from New York to New Jersey is likely to wind up on servers in Brazil, Japan and Britain. The same is true for most purely domestic communications.

Executive Order 12333 contains nothing to prevent the NSA from collecting and storing all such communications — content as well as metadata — provided that such collection occurs outside the United States in the course of a lawful foreign intelligence investigation. No warrant or court approval is required, and such collection never need be reported to Congress. None of the reforms that Obama announced earlier this year will affect such collection.

Without any legal barriers to such collection, U.S. persons must increasingly rely on the affected companies to implement security measures to keep their communications private. The executive order does not require the NSA to notify or obtain consent of a company before collecting its users’ data.

The attorney general, rather than a court, must approve “minimization procedures” for handling the data of U.S. persons that is collected under 12333, to protect their rights. I do not know the details of those procedures. But the director of national intelligence recently declassified a document (United States Signals Intelligence Directive 18) showing that U.S. agencies may retain such data for five years.

Before I left the State Department, I filed a complaint with the department’s inspector general, arguing that the current system of collection and storage of communications by U.S. persons under Executive Order 12333 violates the Fourth Amendment, which prohibits unreasonable searches and seizures. I have also brought my complaint to the House and Senate intelligence committees and to the inspector general of the NSA.

I am not the first person with knowledge of classified activities to publicly voice concerns about the collection and retention of communications by U.S. persons under 12333. The president’s own Review Group on Intelligence and Communication Technologies, in Recommendation 12 of its public report, addressed the matter. But the review group coded its references in a way that masked the true nature of the problem.

At first glance, Recommendation 12 appears to concern Section 702 of the FISA Amendments Act, which authorizes collection inside the United States against foreign targets outside the United States. Although the recommendation does not explicitly mention Executive Order 12333, it does refer to “any other authority.” A member of the review group confirmed to me that this reference was written deliberately to include Executive Order 12333.

Recommendation 12 urges that all data of U.S. persons incidentally collected under such authorities be immediately purged unless it has foreign intelligence value or is necessary to prevent serious harm. The review group further recommended that a U.S. person’s incidentally collected data never be used in criminal proceedings against that person, and that the government refrain from searching communications by U.S. persons unless it obtains a warrant or unless such searching is necessary to prevent serious harm.

The White House understood that Recommendation 12 was intended to apply to 12333. That understanding was conveyed to me verbally by several White House staffers, and was confirmed in an unclassified White House document that I saw during my federal employment and that is now in the possession of several congressional committees.

In that document, the White House stated that adoption of Recommendation 12 would require “significant changes” to current practice under Executive Order 12333 and indicated that it had no plans to make such changes.

All of this calls into question some recent administration statements. Gen. Keith Alexander, a former NSA director, has said publicly that for years the NSA maintained a U.S. person e-mail metadata program similar to the Section 215 telephone metadata program. And he has maintained that the e-mail program was terminated in 2011 because “we thought we could better protect civil liberties and privacy by doing away with it.” Note, however, that Alexander never said that the NSA stopped collecting such data — merely that the agency was no longer using the Patriot Act to do so. I suggest that Americans dig deeper.

Consider the possibility that Section 215 collection does not represent the outer limits of collection on U.S. persons but rather is a mechanism to backfill that portion of U.S. person data that cannot be collected overseas under 12333.

Proposals for replacing Section 215 collection are currently being debated in Congress. We need a similar debate about Executive Order 12333. The order as used today threatens our democracy. There is no good reason that U.S. citizens should receive weaker privacy and oversight protections simply because their communications are collected outside, not inside, our borders.

I have never made any unauthorized disclosures of classified information, nor would I ever do so. I fully support keeping secret the targets, sources and methods of U.S. intelligence as crucial elements of national security. I was never a disgruntled federal employee; I loved my job at the State Department. I left voluntarily and on good terms to take a job outside of government. A draft of this article was reviewed and cleared by the State Department and the NSA to ensure that it contained no classified material.

When I started at the State Department, I took an oath to protect the Constitution of the United States. I don’t believe that there is any valid interpretation of the Fourth Amendment that could permit the government to collect and store a large portion of U.S. citizens’ online communications, without any court or congressional oversight, and without any suspicion of wrongdoing. Such a legal regime risks abuse in the long run, regardless of whether one trusts the individuals in office at a particular moment.

I am coming forward because I think Americans deserve an honest answer to the simple question: What kind of data is the NSA collecting on millions, or hundreds of millions, of Americans?

https://www.washingtonpost.com/opinions/meet-executive-order-12333-the-reagan-rule-that-lets-the-nsa-spy-on-americans/2014/07/18/93d2ac22-0b93-11e4-b8e5-d0de80767fc2_story.html?utm_term=.0be4d4e8beac

A Primer on Executive Order 12333: The Mass Surveillance Starlet

JUNE 2, 2014

Many news reports have focused on Section 215 of the Patriot Act (used to collect all Americans’ calling records) and Section 702 of the Foreign Intelligence Surveillance Act Amendments Act (FAA) (used to collect phone calls, emails and other Internet content) as the legal authorities supporting much of the NSA’s spying regime. Both laws were passed by Congress and are overseen by the Foreign Intelligence Surveillance Court (FISA court). However, it’s likely that the NSA conducts much more of its spying under the President’s claimed inherent powers and only governed by a document originally approved by President Reagan titled Executive Order 12333. The Senate Select Committee on Intelligence is currently conducting a secret investigation into the order, but Congress as a whole—including the Judiciary committee—must release more information about the order to the public.

EO 12333 was first written in 1981 in the wake of Watergate and the Foreign Intelligence Surveillance Act, an act passed by Congress that regulates spying conducted on people located within the United States. Since FISA only covers specific types of spying, the President maintains that the executive branch remains free to spy abroad on foreigners with little to no regulation by Congress.

Executive Order 12333

The Executive Order does three things: it outlines what it governs, when the agencies can spy, and how they can spy. In broad strokes, the Executive Order mandates rules for spying on United States persons (a term that includes citizens and lawful permanent residents wherever they may be) and on anyone within the United States. It also directs the Attorney General and others to create further policies and procedures for what information can be collected, retained, and shared.

The first section of the order covers the role of every agency conducting intelligence in the Intelligence Community, which includes seventeen different agencies, including well-known entities like the Central Intelligence Agency (CIA) and the NSA, and lesser-known entities like the Office of Terrorism and Financial Intelligence in the Department of Treasury. The roles vary by agency. For instance, the NSA is, among other things, responsible for “collection, processing and dissemination of signals intelligence,” while the CIA is responsible for “national foreign intelligence.

The Information Collected

The Executive Order purports to cover all types of spying conducted with the President’s constitutional powers—including mass spying. That’s important to note because some of the spying conducted under EO 12333 is reportedly similar to the mass spying conducted under Section 702 of the FAA. Under this type of spying, millions of innocent foreigners’ communications are collected abroad, inevitably containing Americans’ communications. In the Section 702 context, this includes techniques like Prism and Upstream. While we don’t know for sure, the Executive Order probably uses similar techniques or piggybacks off of programs used for Section 702 spying.

The second section of the EO partly covers mass spying by establishing what information intelligence agencies can collect, retain, and share about US persons. The current guidelines, the United States Signals Intelligence Directive SP0018, also known as “USSID 18,” are (just like the “minimization procedures” based off of them) littered with loopholes to over-collect, over-retain, and over-share Americans’ communications—all without a probable cause warrant or any judicial oversight.

Defenders (.pdf) of the mass spying conducted under the Executive Order point out the order “protects” such US person information with guidelines like USSID 18, but such protections are window-dressing, at best. Policies like USSID 18 and other accompanying Executive Order guidelines such as the “Special Procedures Governing Communications Metadata Analysis” allow for extensive use of US person information and data without a probable cause warrant. Indeed, news reports and Congressional testimony confirm the “Special Procedures” are used to map Americans’ social networks. The procedures are clear evidence the government believes that Fourth Amendment’s protections stop at the border.

Uses of Executive Order 12333

We do know a little about the spying conducted using EO 12333, but more must be revealed to the public. One early news report revealed it was the NSA’s claimed authority for the collection of Americans’ address books and buddy lists. It’s also involved in the NSA’s elite hacking unit, the Tailored Access Operations unit, which targets system administrators and installs malware while masquerading as Facebook servers. And in March, the Washington Postrevealed the order alone—without any court oversight—is used to justify the recording of “100 percent of a foreign country’s telephone calls.” The NSA’s reliance on the order for foreign spying includes few, if any, Congressional limits or oversight. Some of the only known limits on Executive spying are found in Executive procedures like USSID 18, the metadata procedures discussed above, and probably other still-classified National Security Policy Directives, none of which have been publicly debated much less approved by Congress or the courts.

The extent of the NSA’s reliance on Executive Order 12333 demands that the government release more information about how the order is used, or misused. And Congress—specifically the Judiciary and Intelligence committees—must reassert the same aggressive and diligent oversight they performed in the 1970s and 1980s.

https://www.eff.org/deeplinks/2014/06/primer-executive-order-12333-mass-surveillance-starlet

Maintaining America’s Ability to Collect Foreign Intelligence: The Section 702 Program

May 13, 2016 21 min read Download Report

Authors:Paul Rosenzweig, Charles Stimson andDavid Shedd

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Section 702 of the Foreign Intelligence Surveillance Act (FISA) will, in its current form, come up for reauthorization in 2017. Broadly speaking, the Section 702 program targets non-U.S. persons reasonably believed to be located outside the United States, in order to acquire foreign intelligence. Over the past several years, this surveillance of the online activities of foreigners has been a critical and invaluable tool for American intelligence professionals and officials. Knowledgeable officials note that more than 25 percent of all current U.S. intelligence is based on information collected under Section 702.[1]

Still, there are those who have concerns about the program. These critics believe that the program, as currently implemented, infringes on Americans’ rights. Their concern hinges on the inevitable reality that in the course of collecting information about foreign actors, the Section 702 program will also collect information about American citizens. As a result, some opponents liken the Section 702 program to the government telephony metadata program disclosed by Edward Snowden, and characterize Section 702 as an instance of government overreach.[2] Such comparisons are misguided and unfair. The program is so vital to America’s national security that Congress should reauthorize Section 702 in its current form.

Section 702 Explained

Section 702 has its origins in President George W. Bush’s terrorist surveillance program and the Patriot Act. That program was initiated in the immediate aftermath of the 9/11 terror attacks, on the President’s own authority. That reliance on exclusive presidential authority contributed to the controversy that initially attended the program—some vocal critics saw it as an example of executive overreach.

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That aspect of the criticism was significantly ameliorated, if not eliminated, several years later, when Congress fully discussed and authorized the activities in question. Indeed, the governing law was adopted and amended twice, after the program had been initiated on the President’s own authority. First, Congress adopted a temporary measure known as the Protect America Act in 2007.[3] Then, it passed the FISA Amendments Act (FAA) in 2008. This is the statute that includes the new Section 702.[4]

Under Section 702, the U.S. Attorney General and the Director of National Intelligence (DNI) may jointly authorize surveillance of people who are not “U.S. persons.” U.S. persons is a term of art in the intelligence community (IC) that means people who are not only American citizens but also covers permanent-resident aliens. As such, the targets of Section 702 surveillance can be neither citizens nor permanent residents of the U.S.

Section 702 authorizes the government to acquire foreign intelligence by targeting non-U.S. persons “reasonably believed” to be outside U.S. borders. Taken together, these two requirements identify the fundamental domain of Section 702 surveillance: it applies to foreigners on foreign soil. It is expressly against the law to attempt collection of information from targets inside the U.S.—whether Americans or foreigners—or to deliberately target the collection of online communications of American citizens.[5]

The law also requires the government to develop “targeting procedures”—the steps the government needs to take in order to ensure that the target is outside the United States at any time that electronic surveillance is undertaken. Obviously, that is sometimes difficult. A cell phone number, for instance, remains the same whether the phone is physically overseas or in the U.S., and the fact that someone has a U.S. cell phone number does not necessarily indicate whether the owner or user of that cell phone is a foreigner or an American. Hence, targeting must be tied to the geolocation of a phone and some knowledge about the owner/user, rather than solely to the phone’s number. Ultimately, it is the targeting procedures, not the targets themselves, that must be approved by the U.S. Foreign Intelligence Surveillance Court (FISC).[6]

To conduct this surveillance, the government can compel assistance from Internet service providers (ISPs) and telephone companies in acquiring foreign intelligence information—that is, information relating to a foreign espionage program or international terrorism. The government often compensates these providers for the necessary effort. According to The Washington Post, the payments range from $250 million to nearly $400 million annually.[7] Some critics of the program suspect that as a result, surveillance turns from a legal obligation to a source of income. Finally, it is important to note that not only regulated carriers, such as traditional cable and telephone companies (such as AT&T or Verizon), are required to participate, but also newer technology companies to include Google, Facebook, and Skype.

The Incidental Collection Issue

If that were all that the 702 program involved, it would likely not be particularly controversial. Few Americans have expressed grave concerns about America’s overseas intelligence collection. Significantly, the 702 program cannot be used to target any U.S. person or any person located in the U.S., whether that person is an American or a foreigner. The government is also prohibited from “reverse targeting” under 702—that is, the government cannot target a non-U.S. person outside the U.S. when the real interest is to collect the communications of a person in the U.S. or of any U.S. person, regardless of location.

But a residual issue arises because of the inevitability of inadvertent collection—the incidental collection of information about Americans as part of the authorized collection of foreign intelligence.

To see why this happens, one needs to understand two distinct aspects of the Section 702 program: one portion that goes by the name of PRISM, and another that is referred to colloquially as “upstream collection.”[8]

PRISM collection is relatively straightforward. A hypothetical can explain: The government has information about a particular e-mail address, or a particular individual, linking it or him to a foreign terrorist organization. That address (john.doe@xyz.com) or that individual’s name (John Doe) is known as a “selector”; it is a basis for sifting through vast quantities of data, and selecting what will be collected and analyzed.

The Attorney General and the DNI certify the selector as relating to a non-U.S. person who is outside the United States, and who is reasonably believed to be connected to a foreign intelligence activity. Then, the National Security Agency (NSA) sends a query about that selector to an ISP. The ISP, in turn, is required to hand over to the government any communications it might have that were sent to—or from—the identified selector. The NSA receives all data collected through PRISM, and makes portions of it available to the CIA and the FBI.

Upstream collection, by contrast, does not focus on the ISP. Instead, it focuses on the “backbone,” through which all telephone and Internet communications travel, which lies “upstream” within the telecommunications infrastructure. For example, an individual’s ISP might be a local company, while the backbone that carries its Internet traffic across the ocean to Europe is almost certainly operated by a larger provider, such as Verizon or AT&T.

There are several additional differences that distinguish upstream collection from PRISM. Most notably, upstream collection can involve “about” communications. “About” communications refer to selectors that occur within the content of the monitored communication, instead of, in the example of e-mail, in the “To” or “From” line.

So, if the government were using a name—John Doe—as a selector, under the upstream collection program, it would also collect foreign intelligence–related communications in which that name appeared in the body of the communication. Say, for example, that two al-Qaeda members are communicating via e-mail, and one says to the other: “We should recruit Doe.” That e-mail would be subject to upstream collection and would be a good example of an “about” communication. The e-mail is about Doe. Under the PRISM program, by contrast, the government would collect e-mails to and from the user name, and nothing more.

As should be evident, in some cases, these programs might result unintentionally in the collection of information about an American. If two Americans are communicating domestically in an exchange that names a foreign intelligence target (say, an e-mail that mentions an al-Qaeda operative by name), that e-mail might be incidentally collected by upstream collection. Likewise, an e-mail between two terrorist targets might be collected that incidentally includes information not only about legitimately identified U.S. persons (the recruit target John Doe), but also others. An e-mail might also mention Mary Doe—even though no evidence exists of any connection between Mary Doe and a foreign intelligence matter.

This prospect of collecting American data led Congress to include certain requirements that would reduce, though not entirely eliminate, the possibility that the data could be misused. Under the FAA, when information is collected about an American, whether incidentally as part of an authorized investigation, or inadvertently as the result of a mistake, the government is required to apply FISC-approved “minimization” procedures to determine whether such information may be retained or disseminated.

When lawyers and intelligence professionals use the word “minimization” in the context of intelligence collection, it means that any information inadvertently collected on a U.S. person is retained (if at all) only for a limited time, and that information about Americans is used and revealed and further disseminated only under narrowly defined circumstances. Minimization requirements may also mean deleting the information entirely. As with the targeting procedures, these minimization procedures are approved by the FISC—but again, the approval is for the entire system of minimization, not for each individual case.

So, for example, under these minimization rules, the NSA, CIA, and FBI are subject to certain limitations in how they are permitted to query and analyze the data they have lawfully collected. For example, they must demonstrate a reasonable likelihood that targeting a particular item in the information collected will result in the development of foreign intelligence. In other words, the rules limit when a U.S. person can be targeted for examination, and how long data about an American can be retained before it is deleted.

The Effectiveness of Section 702

With that background in mind, it is useful to turn to more practical questions about the program: Does it work? Is it being abused?

The public record suggests that the Section 702 program has indeed helped in the fight against terrorism. Classified records might provide additional support for this conclusion but they are unavailable to us.[9] The Privacy and Civil Liberties Oversight Board (PCLOB)—a bipartisan panel in the executive branch that reviews actions the executive branch takes to protect the country from terrorism, and also monitors civil liberty concerns—has reported that more than one-quarter of NSA reports on international terrorism include information that is based in whole, or in part, on data collected under the Section 702 program.

The PCLOB found that the 702 program “makes a substantial contribution to the government’s efforts to learn about the membership, goals, and activities of international terrorist organizations, and to prevent acts of terrorism from coming to fruition.”[10] Additionally, the program has “led the government to identify previously unknown individuals who are involved in international terrorism, and it has played a key role in discovering and disrupting specific terrorist plots aimed at the United States and other countries.”[11]

Although the details supporting these findings are classified, the board has also said that the program has played a role in discovering, and disrupting, specific terrorist plots aimed at the United States by enabling the government to identify previously unidentified individuals involved in international terrorism.[12] Additionally, the U.S. House of Representatives Permanent Select Committee on Intelligence (HPSCI) has posted three declassified examples from the NSA that involved the effective use of Section 702 collection in 2009: the New York City Subway Attack Plot; the Chicago Terror Investigation; and Operation Wi-Fi.

A few critics of the 702 program have disputed its actual impact in the New York City Subway Attack Plot and the Chicago Terror Investigation. TheGuardian interviewed several people who were involved in the two investigations and reviewed U.S. and British court documents.[13] Based on this incomplete record, The Guardian concluded that these investigations began with “conventional” surveillance methods—such as “old-fashioned tip-offs” of the British intelligence services—rather than from leads produced by NSA surveillance.

But the fact remains that current and former intelligence officials, members from both political parties across two Administrations, national security law experts in the private sector, and the PCLOB maintain that 702 has been and continues to be a very important intelligence tool for overseas intelligence collection.

Section 702 Criticisms v. Facts

Some of the criticisms of Section 702 are little more than philosophical objections to the concept of overseas surveillance.

Setting aside those concerns, there are other specific criticisms, each of which lacks merit. For example, there has been criticism that there is no significant publicly available data on how little, or how much, incidental collection there is about U.S. persons. Such data would be helpful to know in assessing the program. According to the PCLOB, in 2013 the NSA approved 198 U.S. person identifiers to be used as content query terms. The real issue is the frequency with which U.S. persons’ information was collected incidentally to the general foreign intelligence mission, and what is done with the information. After all, if the volume of incidental collection even remotely came close to what is collected as useful data on terrorism activities, including threats, skepticism about Section 702’s efficacy would be warranted.

Given that the targets of Section 702 collection are non-U.S. persons reasonably believed to be located overseas, it can reasonably be inferred that the predominant portion of the collected data does not contain U.S. person information. Although it would be useful to have an accurate estimate of how much incidental U.S. person information actually resides within the remaining portion of the data collected under the Section 702 program, it has proved very difficult to find any solution that would provide such an estimate. The first problem is that the collected data is often not readily identifiable as being associated with a U.S. person and would require the application of additional scarce technological and analytic resources in an effort to make those associations. The second problem is that the targets of the Section 702 collection efforts do not always communicate with persons of foreign intelligence interest. Ironically, an effort to ascertain an accurate estimate of non-pertinent U.S. person information lying dormant in the collected data is inconsistent with the purpose of Section 702, which is to identify foreign intelligence information. Such an effort to provide an estimate would result in more invasive review of U.S. person information.

FISA itself takes a more practical approach in attempting to understand the potential U.S. person privacy implications raised by Section 702 collection. It requires the head of each element of the Intelligence Community to conduct an annual review and to provide an accounting of the references to U.S. persons in intelligence reporting.[14] This outcome-based approach focuses on the U.S. person information that is actually being seen by the Intelligence Community, in order to assess whether there is any prejudicial impact on privacy rights. Also, the Office of the Director of National Intelligence (ODNI) recently released its “Statistical Transparency Report Regarding Use of National Security Authorities–Annual Statistics for Calendar Year 2015.”[15] The report estimates that 94,368 non-U.S. persons are targets of Section 702 collection. By comparison, the report estimates that the IC used 4,672 known U.S. person search terms in 23,800 queries of the lawfully collected Section 702 data. The report also notes that in 2015, the NSA disseminated 4,290 Section 702 intelligence reports that included U.S. person information. Of those reports, the U.S. person information was masked in 3,168 reports and unmasked in 1,122 reports. The remaining major criticisms of the 702 program are more systematic and definitional. One critique is that the government uses too broad a means in its first stage of collection, which is then followed by a more refined collection of data.[16] Judge Thomas F. Hogan of the FISC has described the program more accurately: “While in absolute terms, the scope of acquisition under Section 702 is substantial, the acquisitions are not conducted in a bulk or indiscriminate manner. Rather they are effected through…discrete targeting decisions for individual selectors.”[17]

Another complaint about the Section 702 program is that U.S. person data is retained—at least partially—at all. Under current rules, when the U.S. government targets someone abroad, it is not required to discard the incidentally collected communications of U.S. persons—if authorities conclude that those conversations constitute foreign intelligence.

In that event, even incidental conversations by or about U.S. persons may be retained. And the threshold for querying a U.S. person within the data collected is relatively low. To affirmatively query the data collected about a U.S. person, all that is needed is a determination that the search is reasonably likely to return foreign intelligence information. “Reasonably likely” is an especially easy standard to meet. It does not, for example, require any particularized suspicion that the U.S. person who is subject of the inquiry is engaged in any wrongdoing himself.

For that reason, a Presidential Review Board, as well a few Members of Congress, believe that Section 702 collection on Americans goes too far.[18] The program, they argue, is permissible and lawful without individual case supervision or a warrant requirement precisely because it targets non-Americans. So they contend that when the communications of U.S. persons are queried, probable cause and warrant requirements should apply. Any loophole that allows that particular querying should be closed because the government should not be able to obtain “back door” evidence against U.S. persons that it could otherwise only obtain with judicial approval.

But there is no “back door” here—a query does not collect any additional data. The FISC specifically holds that the 702 collection is constitutional and entirely consistent with the Fourth Amendment’s protections. The court found that “the querying provisions of the FBI Minimization Procedures strike a reasonable balance between the privacy interests of U.S. persons and persons in the United States, on the one hand, and the government’s national security interests, on the other.”[19] Even the fact that the “FBI’s use of those provisions to conduct queries designed to return evidence of crimes unrelated to foreign intelligence” did “not preclude the Court from concluding that taken together, the targeting and minimization procedures submitted with the 2015 Certifications are consistent with the requirements of the Fourth Amendment.”[20]

Obviously, Congress itself did not agree with these systematic and definitional complaints. While the focus of Section 702 collection is on non-U.S. persons located overseas, one of the specifically intended benefits of Section 702 was its ability to provide tip and lead information about persons in the United States who might be conspiring with overseas terrorists. This limited information might prove useful in helping to establish the probable cause necessary to obtain full surveillance coverage of these domestic suspects. It is also important to understand that the response to complaints about the theoretical possibility of abuse under FISA revolves around tight controls. The PCLOB found little evidence of abuse of the Section 215 metadata program, and in the case of Section 702 implementation found virtually no intentional misuse of the collection authorities where U.S. persons were concerned:

Over the years, a series of compliance issues were brought to the attention of the FISA court by the government. However, none of these compliance issues involved significant intentional misuse of the system. Nor has the Board seen any evidence of bad faith or misconduct on the part of any government officials or agents involved with the program. Rather, the compliance issues were recognized by the [FISA] court—and are recognized by the Board—as a product of the program’s technological complexity and vast scope, illustrating the risks inherent in such a program.[21]

Similarly, the PCLOB included a section in its 702 report called “Compliance Issues.” According to the PCLOB, the few instances of error in the administration of the 702 program were infrequent and mainly minor and administrative in nature. That is why the PCLOB found that “internal and external compliance programs have not to date identified any intentional attempts to circumvent or violate the procedures or the statutory requirements, but both unintentional incidents of noncompliance and instances where Intelligence Community personnel did not fully understand the requirements of the statute.”[22]

In other words, all of the errors in the program were accidental or due to mistakes. None was the product of intentional misconduct. Indeed, the non-compliance incident rate has been substantially below 1 percent, according to the PCLOB.[23] Over half of the reported incidents involved instances in which the “NSA otherwise complied with the targeting and minimization procedures in tasking and de-tasking a selector, but failed to make a report to the NSD and ODNI” in a timely fashion.[24]

Two other common reasons why compliance errors occurred are that: (1) the wrong selector was tasked due to a typographical error, or (2) a delay in de-tasking (removing the selector) resulted when an analyst de-tasked some, but not all, of the Section 702-tasked selectors placed on a non-U.S. person target known to be traveling to the United States.[25]

Taken together, these minor administrative errors accounted for “almost 75% of the compliance incidents,” according to the PCLOB.[26]

Section 702: Constitutional and Lawful

One last aspect of Section 702 needs to be addressed: the suggestion that the program might in some way be unconstitutional or unlawful. This Backgrounder concludes that relevant case law firmly supports the constitutionality and legality of the Section 702 program. To support this conclusion, we provide a brief history of relevant case law.

The predicate case is United States v. United States District Court,[27] sometimes known as the Keith case, after Judge Damon Keith, the federal district court judge who oversaw the case.

The case hearkens back to an era of protest and civil unrest in the United States. It involved several leaders of the so-called White Panther Party—a white supremacist group—who were charged with bombing a CIA office in Ann Arbor, Michigan, in 1968. Their phones were wiretapped by order of U.S. Attorney General John Mitchell, who served under President Richard Nixon. Mitchell said that no warrant was required to authorize the interception, because the defendants posed a “clear and present danger to the structure or existence of the government.”

Judge Keith responded that the Attorney General’s rationale was insufficient, and ruled that warrantless interception and surveillance of domestic conversations was unconstitutional. When the case reached the Supreme Court, the justices agreed with Judge Keith, establishing as precedent the idea that a warrant was needed before electronic surveillance commenced, even if the domestic surveillance was related to national security.

As Justice Lewis Powell said in writing for the Court, the “price of lawful public dissent must not be a dread of subjection to an unchecked surveillance power.” Justice Powell continued, “Nor must the fear of un-authorized official eavesdropping deter vigorous citizen dissent and discussion of government action in private conversation. For private dissent, no less than open public discourse, is essential to our free society.”

Notably, however, the Court limited its holding to domestic surveillance, and said that different rules might apply when the surveillance occurred outside the United States, or was directed at a foreign power—or at non-Americans. Regarding surveillance of non-Americans overseas, courts around the country have agreed with the implicit suggestion of the Supreme Court, holding that surveillance for foreign intelligence purposes need only be reasonable (and that a warrant is not required).[28] That distinction—between domestic and foreign surveillance—is preserved in FISA, which allows more relaxed FISA procedures (for which a criminal warrant was not required) only when the purpose of the investigation is to collect foreign intelligence.

In Vernonia School District 47J v. Acton, the Supreme Court upheld the drug testing of high school athletes and explained that the exception to the warrant requirement applied “when special needs, beyond the normal need for law enforcement, make the warrant and probable cause requirements impracticable.”[29] Although Vernonia was not a foreign intelligence case—far from it—the principles from the Court’s “special needs” cases influenced later cases in the national security context.

In “In re: Sealed Case,” the United States Foreign Intelligence Surveillance Court of Review held that FISA did not require the government to demonstrate to the FISA court that its primary purpose in conducting electronic surveillance was not criminal prosecution and, significantly, the PATRIOT Act’s amendment to FISA, permitting the government to conduct surveillance of agents of foreign powers if foreign intelligence was the “significant purpose” of the surveillance, did not violate the Fourth Amendment.[30] The court avoided an express holding that a foreign intelligence exception exists, but held that FISA could survive on reasonableness grounds.

In 2008, “In re: Directives Pursuant to Section 105B of FISA” applied the principles derived from the special needs cases to conclude that the foreign intelligence surveillance authorized by the Protect America Act possesses characteristics that qualify it for a foreign intelligence exception to the warrant requirement of the Fourth Amendment.[31]

Notably, the “In re: Directives” decision cites a Fourth Circuit opinion for the proposition that there is a high degree of probability that requiring a warrant would hinder the government’s ability to collect time-sensitive information and thus impede vital national security interests.[32]

In April 2016, the first decision addressing the constitutionality of upstream collection under Section 702 was publicly released. The FISA court issued a declassified opinion[33] in which it concluded that use of information collected under Section 702 authority for domestic investigations satisfied both constitutional standards and was within the statutory bounds of the FISA Amendments Act. Notably, for purposes of this discussion, the court reached this conclusion after having had the benefit of a public advocate who articulated a position contrary to that of the government.[34] Judge Hogan cites “In re: Directives” in support of the proposition that the Fourth Amendment does not require the government to obtain a warrant to conduct surveillance in order “to obtain foreign intelligence for national security purposes [that] is directed against foreign powers or agents of foreign powers reasonably believed to be located outside of the United States.”

Section 702: Continuing Improvements

On February 5, 2016, the PCLOB issued its “Recommendations Assessment Report.” The purpose of the report was to assess whether the DNI had responded appropriately to recommendations it had made for the improvement of the program.

The DNI had taken action to the PCLOB recommendations. Indeed, with respect to the 10 recommendations relating to the Section 702 program, the PCLOB Recommendations Assessment Report determined that five recommendations have been fully implemented; one has been substantially implemented; three are in the process of being implemented; and one has been partially implemented.[35]

The historical record demonstrates the effectiveness of both the PCLOB’s oversight function and the responsiveness of the DNI to its recommendations—a win-win story in the new age of intelligence oversight.[36]

Conclusions

First, Section 702 is constitutional, statutorily authorized, and carefully constructed to address a vital U.S. national security requirement: the collection of vital information relating to foreign threats.

Second, it seems clear that, in light of careful scrutiny by the PCLOB, the specter of alleged abuse of the program is more theoretical than real.

Third, the Section 702 program has great current utility and provides invaluable intelligence of practical impact and not replaceable by other means of collection.

The benefits of the Section 702 program greatly outweigh its (theoretical) costs and the program should continue as currently authorized. Indeed, the record suggests that the 702 Program is invaluable as a foreign intelligence collection tool. The fruits of the program constitute more than 25 percent of the NSA’s reports concerning international terrorism. It has clearly defined implementation rules and robust oversight by all three branches of government, and is a necessary tool for defending the nation.

Congress should reauthorize 702 in its entirety. There is no need for a further sunset of the act’s provisions, as it has demonstrated its usefulness; and an arbitrarily forced reconsideration by Congress is unnecessary, a waste of time and money, and at the expense of national security.

The program can, and should, be implemented in a manner that is consistent with American values. To quote General Michael Hayden, former director of the NSA and former CIA director:

[A]n American strategy for cyberspace must reflect and serve our ideals. In our zeal to secure the internet, we must be careful not to destroy that which we are trying to preserve, an open, accessible, ubiquitous, egalitarian, and free World Wide Web. There are nations—like Iran, China, Russia and others—who view precisely those attributes as the very definition of cyber security threats. Their concern is not digital theft, but the free movement of ideas. We must take care that in our efforts to prevent the former, we do not legitimize their efforts to prevent the latter.[37]

A properly configured Section 702 program has met that challenge to the benefit of the American public. At a time when international terrorism is on the rise, the United States must have a lawful, robust foreign intelligence capability.

—David R. Shedd is a Visiting Distinguished Fellow in the Kathryn and Shelby Cullom Davis Institute for National Security and Foreign Policy, Paul Rosenzweig is a Visiting Fellow in the Douglas and Sarah Allison Center for Foreign Policy, of the Davis Institute, and Charles D. Stimson is Manager of the National Security Law Program and Senior Legal Fellow in the Center for National Defense, of the Davis Institute, at The Heritage Foundation.

JUNE 06, 2017 5:27 PM

Republicans worried about leaks consider cutting back surveillance authority

 

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The Pronk Pops Show 893, May 15, 2017, Story 1: World Wide Ransom Ware Demands Spreading To Over 150 Countries — Huge Hacker Holdup Using Exploit of Security Flaw In Microsoft XP Operating System — Used Code Developed By U.S. National Security Agency (NSA) — Running Sacred — Crying — It’s Over — Videos — Story 2: American People Demand Congress Appoint Special Prosecutor — Investigate Obama’s Administration Use of Intelligence Community (NSA, CIA, FBI, …) Warrantless Surveillance of Both Democrat and Republican Presidential Candidates — The Use Intelligence Information For Political Purposes Is A Felony! — Videos

Posted on May 15, 2017. Filed under: American History, Applications, Blogroll, Breaking News, Computer, Computers, Corruption, Crime, Donald J. Trump, Donald Trump, Hardware, History, Human, Law, Life, Media, Networking, Privacy, Raymond Thomas Pronk, Science, Security, Servers, Social Science, Software, Wealth, Wisdom | Tags: , , , , , , |

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Story 1: Huge Hacker Holdup — Cyber extortion Attack — NSA Ransom War — Running Sacred — Crying — It’s Over — VideosImage result for ransome ware attackImage result for bitcoinImage result for cartoons ransom ware attackImage result for ransome ware attack list of countries and companies

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 New version of ransomware worm expected

Cyber Attack: Ransomware causing chaos globally – BBC News

Ransomware virus ‘WannaCry’ plagues 100k computers across 99 countries

Ransomware attack takes down LA hospital for hours

WannaCry Ransomware Hits Hospitals

WannaCry Ransomware Used In Global Attacks!

WATCH: Ransomware cyberattack targets Windows users around the world

BREAKING***100 Countries Massive Global Ransomware Attack Used NSA Hacking Tool

What is ransomware and how can I protect myself?

How Ransomware Locks Your PC & Holds Your Data Hostage

Massive Ransomware Outbreak Thanks to NSA – WannaCry Worm Spreading Fast

Ransomware As Fast As Possible

The Truth About Ransomware – Webinar

What is Ransomware, How it Works and What You Can Do to Stay Protected

NSA Whistleblower Bill Binney on Tucker Carlson 03.24.2017

NSA Whistleblower William Binney: The Future of FREEDOM

ROY ORBISON – CRYING – LIVE 1988

Roy Orbison – “Running Scared” from Black and White Night

Roy Orbison – Crying (Monument Concert 1965)

Roy Orbison – It’s Over (Monument Concert 1965)

Roy Orbison – “It’s Over” from Black and White Night

Worldwide ransomware attacks: What we know so far

May 15, 2017
AUTHOR: LILY HAY NEWMAN. SECURITY

HOW AN ACCIDENTAL ‘KILL SWITCH’ SLOWED FRIDAY’S MASSIVE RANSOMWARE ATTACK

Cybersecurity Experts’ First Task: Find Out How Virus Spread

Investigators think a computer outlet that isn’t supposed to be connected to the internet was a possible vector for WannaCry

The virus, dubbed WannaCry, is a two-part virus. One part is ransomware, which locks computer files and demands online payment to unlock them. The other part spreads it.

The virus, dubbed WannaCry, is a two-part virus. One part is ransomware, which locks computer files and demands online payment to unlock them. The other part spreads it. PHOTO: RITCHIE B. TONGO/EUROPEAN PRESSPHOTO AGENCY

Government investigators and private cybersecurity firms are trying to find out how a virus managed to spread around the globe over the weekend, which would give them their best chance to identify the mastermind behind the cyberattacks.

Investigators have already ruled out phishing—tricking someone into opening a seemingly legitimate email attachment that actually contains the virus—as a possible tactic. One of their hypotheses centers on something called port 445, an outlet that isn’t supposed to be connected to the internet.

The race is on to identify patient zero, or the first known infection of the virus, to find clues that could lead back to the hacker.

The attacks appear to have largely abated Monday, despite fears that a new workweek would trigger a second wave. Cybersecurity experts see fewer infections compared with Friday, when the onslaught started.

“We think the initial fire is put out,” said Rob Holmes, vice president of products at Proofpoint, a Silicon Valley company with virus sensors at major corporations and telecom companies.

The virus, dubbed WannaCry, is a two-part virus. One part is ransomware, which locks computer files and demands online payment to unlock them. The other part is a “spreader,” which transmits WannaCry to all other computers on a network. It attacks machines running Microsoft Corp.’s Windows systems that don’t have up-to-date security patches.

Mr. Holmes said 95% of ransomware attacks use the relatively unsophisticated technique of phishing.

A European Union cybersecurity agency published a report Monday, which said early indications pointed to emails containing WannaCry-infected Microsoft Office documents as the attacker’s weapon. But it quickly amended the report, saying phishing probably wasn’t involved.

If it had been a phishing attack, organizations would have found the offending email by now and described it to the public, cybersecurity experts said.

Now there are two main hypotheses as to how WannaCry could have wormed its way into a computer. One theory centers on port 445.

Imagine a network of 100 computers. These computers communicate with each other through digital roads. One of the roads is port 445, and it is usually reserved for Windows-running computers to transfer files to each other, or to send stuff to the printer, said Becky Pinkard, a vice president at cybersecurity firm Digital Shadows.

Authorities know WannaCry spread itself within a network using the port 445 roads. But how did it get there in the first place? Port 445 roads connect computers within a network, but it was thought to be walled off from the internet and outside world. Now investigators are trying to determine whether port 445’s wall has a hole that WannaCry wiggled through.

“Most researchers tend to believe at the moment that it spreads initially through vulnerable computers exposing port 445 on the internet,” the updated EU agency report said.

There is another theory. Ms. Pinkard said an employee could have taken an office-issued laptop to a coffee shop or hotel and logged onto the venue’s unsecure internet network. If that laptop doesn’t have the antivirus protections that networks at big organizations typically have, a hacker could’ve slipped WannaCry onto the device. When the employee brings the laptop back to the office and connects it to the network, bam: WannaCry spreads itself via port 445.

Companies can protect laptops from this with commercially available protection software, Ms. Pinkard said.

If researchers can find the original WannaCry victim, they might be able to trace the signature of the attacker who delivered the virus via an internet-protocol address, or IP address. “If I were law enforcement, I would be working to find who was the very first company impacted,” Ms. Pinkard said. “I would knock at the door and be asking, ‘Can I look at your logs?’ ”

The problem is that the IP address could lead to another IP address, which would lead to another IP address, and so on. “It’s a very slow and painful process,” Ms. Pinkard said.

Cybersecurity experts said that, even though some of the world’s smartest minds are on the case, it could take months or years to find the mastermind—if they find the attacker at all.

A parallel hunt would be following the money. WannaCry asked for ransom to be delivered via a digital currency called bitcoin. About 124 payments totaling about $34,000, or a little less than $300 each, went to the attacker as of Sunday afternoon, said bitcoin-analytics-firm Chainalysis. Every bitcoin transaction is recorded on an online ledger. But finding out the individual behind each transaction is difficult because users’ identities are well encrypted.

“There’s going to be a paper trail,” said Brian Knight, a George Mason University specialist in financial technology. “Whether it can be deciphered is a separate question.”

https://www.wsj.com/articles/cybersecurity-experts-first-task-find-out-how-virus-spread-1494868250

The cyberattacks started Friday and spread rapidly around the globe using a security flaw in Microsoft’s Windows XP operating system

The cyberattacks started Friday and spread rapidly around the globe using a security flaw in Microsoft’s Windows XP operating system

 Security agencies are hunting for those behind a crippling cyberattack which has so far hit hundreds of thousands of computers worldwide, including at government agencies, factories and health services.

Here is what we know so far about the cyber ransom attacks:

– What happened? –

The cyberattacks started Friday and spread rapidly around the globe using a security flaw in Microsoft’s Windows XP operating system, an older version that is no longer given mainstream tech support by the US giant.

The so-called WannaCry ransomware locks access to user files and in an on-screen message demands payment of $300 (275 euros) in the virtual currency Bitcoin in order to decrypt the files.

Victims have been advised by security experts not to pay up.

The attack is unique, according to policing agency Europol, because it combines ransomware with a worm function, meaning once one machine is infected, the entire internal network is scanned and other vulnerable machines are infected.

– Who has been affected? –

Europol chief Rob Wainwright said computer systems in more than 150 countries were hit, with the majority of organisations affected over the weekend in Europe.

But as Asia woke up to the working week on Monday, leading Chinese security-software provider Qihoo 360 said “hundreds of thousands” of computers in the country were hit at nearly 30,000 institutions including government agencies.

In Japan, a spokesman for Hitachi said the conglomerate discovered problems on Monday morning and its computer networks were “unstable”.

Other high-profile victims include hospitals in Britain, the Spanish telecoms giant Telefonica, French carmaker Renault, US package delivery company FedEx, Russia’s interior ministry and the German rail operator Deutsche Bahn.

– Where did the malware come from? –

Brad Smith, Microsoft’s president and chief legal officer, said in a blog post Sunday that the culprits used a code developed by the US National Security Agency.

It was leaked as part of a document dump, according to researchers at the Moscow-based computer security firm Kaspersky Lab.

Smith warned governments against stockpiling such vulnerabilities and said instead they should report them to manufacturers — not sell, store or exploit them, lest they fall into the wrong hands.

“An equivalent scenario with conventional weapons would be the US military having some of its Tomahawk missiles stolen,” Smith wrote.

“The governments of the world should treat this attack as a wake up call.”

– Who was behind the attack? –

Europol said on Monday it was continuing to hunt for the culprits behind the unprecedented attack.

The agency’s senior spokesman Jan Op Gen Oorth said it was still “a bit early too say who is behind it, but we are working on a decrypting tool”.

Experts think it unlikely to have been one person, with criminally minded cyber crime syndicates nowadays going underground and using ever more sophisticated encryption to hide their activities.

– How can people protect their computers? –

Microsoft took the unusual step of reissuing security patches first made available in March for Windows XP and other older versions of its operating system.

Kaspersky said it was seeking to develop a decryption tool “as soon as possible”.

Europol said European companies and governments had heeded warnings and as a result avoided further fallout from the ransomware.

“It seems that a lot of internet security guys over the weekend did their homework and ran the security software updates,” Jan Op Gen Oorth told AFP.

https://www.yahoo.com/tech/worldwide-ransomware-cyberattacks-know-152751340.html

Dozens of countries hit by huge cyberextortion attack

NEW YORK (AP) — Dozens of countries were hit with a huge cyberextortion attack Friday that locked up computers and held users’ files for ransom at a multitude of hospitals, companies and government agencies.

It was believed to the biggest attack of its kind ever recorded.

The malicious software behind the onslaught appeared to exploit a vulnerability in Microsoft Windows that was supposedly identified by the National Security Agency for its own intelligence-gathering purposes and was later leaked to the internet.

Britain’s national health service fell victim, its hospitals forced to close wards and emergency rooms and turn away patients. Russia appeared to be the hardest hit, according to security experts, with the country’s Interior Ministry confirming it was struck.

All told, several cybersecurity firms said they had identified the malicious software, which so far has been responsible for tens of thousands of attacks, in more than 60 countries. That includes the United States, although its effects there didn’t appear to be widespread, at least initially.

The attack infected computers with what is known as “ransomware” — software that locks up the user’s data and flashes a message demanding payment to release it. In the U.S., FedEx reported that its Windows computers were “experiencing interference” from malware, but wouldn’t say if it had been hit by ransomware.

Mikko Hypponen, chief research officer at the Helsinki-based cybersecurity company F-Secure, called the attack “the biggest ransomware outbreak in history.”

Security experts said the attack appeared to be caused by a self-replicating piece of software that enters companies and organizations when employees click on email attachments, then spreads quickly internally from computer to computer when employees share documents and other files.

Its ransom demands start at $300 and increase after two hours to $400, $500 and then $600, said Kurt Baumgartner, a security researcher at Kaspersky Lab. Affected users can restore their files from backups, if they have them, or pay the ransom; otherwise they risk losing their data entirely.

Chris Wysopal of the software security firm Veracode said criminal organizations were probably behind the attack, given how quickly the malware spread.

“For so many organizations in the same day to be hit, this is unprecedented,” he said.

The security holes it exploits were disclosed several weeks ago by TheShadowBrokers, a mysterious group that has published what it says are hacking tools used by the NSA as part of its intelligence-gathering.

Shortly after that disclosure, Microsoft announced that it had already issued software “patches” for those holes. But many companies and individuals haven’t installed the fixes yet or are using older versions of Windows that Microsoft no longer supports and didn’t fix.

By Kaspersky Lab’s count, the malware struck at least 74 countries. In addition to Russia, the biggest targets appeared to be Ukraine and India, nations where it is common to find older, unpatched versions of Windows in use, according to the security firm.

Hospitals across Britain found themselves without access to their computers or phone systems. Many canceled all routine procedures and asked patients not to come to the hospital unless it was an emergency. Doctors’ practices and pharmacies reported similar problems.

Patrick Ward, a 47-year-old sales director, said his heart operation, scheduled for Friday, was canceled at St. Bartholomew’s Hospital in London.

Tom Griffiths, who was at the hospital for chemotherapy, said several cancer patients had to be sent home because their records or bloodwork couldn’t be accessed.

“Both staff and patients were frankly pretty appalled that somebody, whoever they are, for commercial gain or otherwise, would attack a health care organization,” he said. “It’s stressful enough for someone going through recovery or treatment for cancer.”

British Prime Minister Theresa May said there was no evidence patient data had been compromised and added that the attack had not specifically targeted the National Health Service.

“It’s an international attack and a number of countries and organizations have been affected,” she said.

Spain, meanwhile, took steps to protect critical infrastructure in response to the attack. Authorities said they were communicating with more than 100 energy, transportation, telecommunications and financial services providers about the attack.

Spain’s Telefonica, a global broadband and telecommunications company, was among the companies hit.

Ransomware attacks are on the rise around the world. In 2016, Hollywood Presbyterian Medical Center in California said it had paid a $17,000 ransom to regain control of its computers from hackers.

Krishna Chinthapalli, a doctor at Britain’s National Hospital for Neurology & Neurosurgery who wrote a paper on cybersecurity for the British Medical Journal, warned that British hospitals’ old operating systems and confidential patient information made them an ideal target for blackmailers.

He said many NHS hospitals in Britain use Windows XP software, introduced in 2001, and as government funding for the health service has been squeezed, “IT budgets are often one of the first ones to be reduced.”

“Looking at the trends, it was going to happen,” he said. “I did not expect an attack on this scale. That was a shock.

https://apnews.com/e8402f2faf934f7ab5419d4961d3dafe/Global-extortion-cyberattack-hits-dozens-of-nations

Global ‘WannaCry’ ransomware cyberattack seeks cash for data

LONDON (AP) — A global “ransomware” cyberattack, unprecedented in scale, had technicians scrambling to restore Britain’s crippled hospital network Saturday and secure the computers that run factories, banks, government agencies and transport systems in many other nations.

The worldwide effort to extort cash from computer users spread so widely that Microsoft quickly changed its policy, making security fixes available for free for the older Windows systems still used by millions of individuals and smaller businesses.

A malware tracking map showed “WannaCry” infections popping up around the world. Britain canceled or delayed treatments for thousands of patients, even people with cancer. Train systems were hit in Germany and Russia, and phone companies in Madrid and Moscow. Renault’s futuristic assembly line in Slovenia, where rows of robots weld car bodies together, was stopped cold.

In Brazil, the social security system had to disconnect its computers and cancel public access. The state-owned oil company Petrobras and Brazil’s Foreign Ministry also disconnected computers as a precautionary measure, and court systems went down, too.

Britain’s home secretary said one in five of 248 National Health Service groups had been hit. Home Secretary Amber Rudd said all but six of the NHS trusts back to normal Saturday.

The U.K.’s National Cyber Security Center was “working round the clock” to restore vital health services, while urging people to update security software fixes, run anti-virus software and back up their data elsewhere.

Who perpetrated this wave of attacks remains unknown. Two security firms — Kaspersky Lab and Avast — said they identified the malicious software in more than 70 countries. Both said Russia was hit hardest.

These hackers “have caused enormous amounts of disruption— probably the biggest ransomware cyberattack in history,” said Graham Cluley, a veteran of the anti-virus industry in Oxford, England.

And all this may be just a taste of what’s coming, another cyber security expert warned.

Computer users worldwide — and everyone else who depends on them — should assume that the next big “ransomware” attack has already been launched, and just hasn’t manifested itself yet, Ori Eisen, who founded the Trusona cybersecurity firm in Scottsdale, Arizona, told The Associated Press.

The attack held hospitals and other entities hostage by freezing computers, encrypting data and demanding money through online bitcoin payments. But it appears to be “low-level” stuff, Eisen said Saturday, given the amount of ransom demanded — $300 at first, rising to $600 before it destroys files hours later.

He said the same thing could be done to crucial infrastructure, like nuclear power plants, dams or railway systems.

“This is child’s play, what happened. This is not the serious stuff yet. What if the same thing happened to 10 nuclear power plants, and they would shut down all the electricity to the grid? What if the same exact thing happened to a water dam or to a bridge?” he asked.

“Today, it happened to 10,000 computers,” Eisen said. “There’s no barrier to do it tomorrow to 100 million computers.”

This is already believed to be the biggest online extortion attack ever recorded, disrupting services in nations as diverse as the U.S., Ukraine, Brazil, Spain and India. Europol, the European Union’s police agency, said the onslaught was at “an unprecedented level and will require a complex international investigation to identify the culprits.”

In Russia, government agencies insisted that all attacks had been resolved. Russian Interior Ministry, which runs the national police, said the problem had been “localized” with no information compromised. Russia’s health ministry said its attacks were “effectively repelled.”

The ransomware exploits a vulnerability in Microsoft Windows that was purportedly identified by the U.S. National Security Agency for its own intelligence-gathering purposes. Hackers said they stole the tools from the NSA and dumped them on the internet.

It could have been much worse if not for a young cybersecurity researcher who helped to halt its spread by accidentally activating a so-called “kill switch” in the malicious software.

The 22-year-old Britain-based researcher, identified online only as MalwareTech, explained Saturday that he spotted a hidden web address in the “WannaCrypt” code and made it official by registering its domain name. That inexpensive move redirected the attacks to MalwareTech’s server, which operates as a “sinkhole” to keep malware from escaping.

“Because WannaCrypt used a single hardcoded domain, my registration of it caused all infections globally to believe they were inside a sandbox … thus we initially unintentionally prevented the spread,” the researcher said, humbly and anonymously, in his blog post.

His move may have saved governments and companies millions of dollars and slowed the outbreak before U.S.-based computers were more widely infected.

Indeed, while FedEx Corp. reported that its Windows computers were “experiencing interference” from malware — it wouldn’t say if it had been hit by the ransomware — other impacts in the U.S. were not readily apparent on Saturday.

That said, the threat hasn’t disappeared, the MalwareTech researcher said.

“One thing that is very important to note is our sinkholing only stops this sample and there is nothing stopping them removing the domain check and trying again, so it’s incredibly important that any unpatched systems are patched as quickly as possible,” he warned.

The kill switch also couldn’t help those already infected. Short of paying, options for these individuals and companies are usually limited to recovering data files from a backup, if available, or living without them.

Security experts said it appeared to be caused by a self-replicating piece of software that enters companies when employees click on email attachments, then spreads quickly as employees share documents.

The security holes it exploits were disclosed weeks ago by TheShadowBrokers, a mysterious hacking group. Microsoft swiftly released software “patches” to fix those holes, but many users still haven’t installed updates or still use older versions of Windows.

Microsoft had made fixes for older systems, such as 2001′s Windows XP, available only to mostly larger organizations, including Britain’s National Health Service, that paid extra for extended technical support. In light of Friday’s attacks, Microsoft announced that it’s making the fixes free to all.

Cluley said “There’s clearly some culpability on the part of the U.S. intelligence services. Because they could have done something ages ago to get this problem fixed, and they didn’t do it.”

“It’s very, very difficult these days, with encryption, to spy on people,” Cluley added. “But I don’t think that those concerns should hide the fact that ALL of us need to be protected … We’re living an online life, and we all deserve security there.”

https://apnews.com/770946e7df454d2e9acda3bdbd3ed425/Unprecedented-global-‘ransomware’-attack-seeks-cash-for-data

Ransomware

From Wikipedia, the free encyclopedia

Ransomware is a type of malicious software designed to block access to a computer system or data until a ransom is paid. Simple ransomware may lock the system in a way which is not difficult for a knowledgeable person to reverse, and display a message requesting payment to unlock it. More advanced malware encrypts the victim’s files, making them inaccessible, and demands a ransom payment to decrypt them.[1] The ransomware may also encrypt the computer’s Master File Table (MFT)[2][3] or the entire hard drive.[4] Thus, ransomware is a denial-of-access attack that prevents computer users from accessing files[5] since it is intractable to decrypt the files without the decryption key. Ransomware attacks are typically carried out using a Trojan that has a payload disguised as a legitimate file.

While initially popular in Russia, the use of ransomware scams has grown internationally;[6][7][8] in June 2013, security software vendor McAfee released data showing that it had collected over 250,000 unique samples of ransomware in the first quarter of 2013, more than double the number it had obtained in the first quarter of 2012.[9] Wide-ranging attacks involving encryption-based ransomware began to increase through Trojans such as CryptoLocker, which had procured an estimated US$3 million before it was taken down by authorities,[10] and CryptoWall, which was estimated by the US Federal Bureau of Investigation (FBI) to have accrued over $18m by June 2015.[11]

Operation

Typically, modern ransomware uses encryption to deny users’ access to their files. The software encrypts the victim’s files using a symmetric cipher with a randomly generated key, and then deletes the key, leaving only a version of it made inaccessible to the victim using public key cryptography. Only the attacker can then decrypt the symmetric key needed to restore the files.[12]

The symmetric key is randomly generated and will not assist other victims. At no point is the attacker’s private key exposed to victims and the victim need only send a very small ciphertext (the encrypted symmetric-cipher key) to the attacker.

Ransomware attacks are typically carried out using a Trojan, entering a system through, for example, a downloaded file or a vulnerability in a network service. The program then runs a payload, which locks the system in some fashion, or claims to lock the system but does not (e.g., a scareware program). Payloads may display a fake warning purportedly by an entity such as a law enforcement agency, falsely claiming that the system has been used for illegal activities, contains content such as pornography and “pirated” media.[13][14][15]

Some payloads consist simply of an application designed to lock or restrict the system until payment is made, typically by setting the Windows Shell to itself,[16] or even modifying the master boot record and/or partition table to prevent the operating system from booting until it is repaired.[17] The most sophisticated payloads encrypt files, with many using strong encryption to encrypt the victim’s files in such a way that only the malware author has the needed decryption key.[12][18][19]

Payment is virtually always the goal, and the victim is coerced into paying for the ransomware to be removed—which may or may not actually occur—either by supplying a program that can decrypt the files, or by sending an unlock code that undoes the payload’s changes. A key element in making ransomware work for the attacker is a convenient payment system that is hard to trace. A range of such payment methods have been used, including wire transfers, premium-rate text messages,[20] pre-paid voucher services such as Paysafecard,[6][21][22] and the digital currency Bitcoin.[23][24][25] A 2016 census commissioned by Citrix revealed that larger business are holding bitcoin as contingency plans.[26]

History

Encrypting ransomware

The first known malware extortion attack, the “AIDS Trojan” written by Joseph Popp in 1989, had a design failure so severe it was not necessary to pay the extortionist at all. Its payload hid the files on the hard drive and encrypted only their names, and displayed a message claiming that the user’s license to use a certain piece of software had expired. The user was asked to pay US$189 to “PC Cyborg Corporation” in order to obtain a repair tool even though the decryption key could be extracted from the code of the Trojan. The Trojan was also known as “PC Cyborg”. Popp was declared mentally unfit to stand trial for his actions, but he promised to donate the profits from the malware to fund AIDS research.[27]

The notion of using public key cryptography for ransom attacks was introduced in 1996 by Adam L. Young and Moti Yung. Young and Yung critiqued the failed AIDS Information Trojan that relied on symmetric cryptography alone, the fatal flaw being that the decryption key could be extracted from the Trojan, and implemented an experimental proof-of-concept cryptovirus on a Macintosh SE/30 that used RSA and the Tiny Encryption Algorithm (TEA) to hybrid encrypt the victim’s data. Since public key crypto is used, the cryptovirus only contains the encryption key. The attacker keeps the corresponding private decryption key private. Young and Yung’s original experimental cryptovirus had the victim send the asymmetric ciphertext to the attacker who deciphers it and returns the symmetric decryption key it contains to the victim for a fee. Long before electronic money existed Young and Yung proposed that electronic money could be extorted through encryption as well, stating that “the virus writer can effectively hold all of the money ransom until half of it is given to him. Even if the e-money was previously encrypted by the user, it is of no use to the user if it gets encrypted by a cryptovirus”.[12] They referred to these attacks as being “cryptoviral extortion”, an overt attack that is part of a larger class of attacks in a field called cryptovirology, which encompasses both overt and covert attacks.[12]

Examples of extortionate ransomware became prominent in May 2005.[28] By mid-2006, Trojans such as Gpcode, TROJ.RANSOM.A, Archiveus, Krotten, Cryzip, and MayArchive began utilizing more sophisticated RSA encryption schemes, with ever-increasing key-sizes. Gpcode.AG, which was detected in June 2006, was encrypted with a 660-bit RSA public key.[29] In June 2008, a variant known as Gpcode.AK was detected. Using a 1024-bit RSA key, it was believed large enough to be computationally infeasible to break without a concerted distributed effort.[30][31][32][33]

Encrypting ransomware returned to prominence in late 2013 with the propagation of CryptoLocker—using the Bitcoin digital currency platform to collect ransom money. In December 2013, ZDNet estimated based on Bitcoin transaction information that between 15 October and 18 December, the operators of CryptoLocker had procured about US$27 million from infected users.[34] The CryptoLocker technique was widely copied in the months following, including CryptoLocker 2.0 (though not to be related to CryptoLocker), CryptoDefense (which initially contained a major design flaw that stored the private key on the infected system in a user-retrievable location, due to its use of Windows’ built-in encryption APIs),[24][35][36][37] and the August 2014 discovery of a Trojan specifically targeting network-attached storage devices produced by Synology.[38] In January 2015, it was reported that ransomware-styled attacks have occurred against individual websites via hacking, and through ransomware designed to target Linux-based web servers.[39][40][41]

Some ransomware strains have used proxies tied to Tor hidden services to connect to their command and control servers, increasing the difficulty of tracing the exact location of the criminals.[42][43] Furthermore, dark web vendors have increasingly started to offer the technology as a service.[43][44][45]

Symantec has classified ransomware to be the most dangerous cyber threat.[46]

Non-encrypting ransomware

In August 2010, Russian authorities arrested nine individuals connected to a ransomware Trojan known as WinLock. Unlike the previous Gpcode Trojan, WinLock did not use encryption. Instead, WinLock trivially restricted access to the system by displaying pornographic images, and asked users to send a premium-rate SMS (costing around US$10) to receive a code that could be used to unlock their machines. The scam hit numerous users across Russia and neighboring countries—reportedly earning the group over US$16 million.[15][47]

In 2011, a ransomware Trojan surfaced that imitated the Windows Product Activation notice, and informed users that a system’s Windows installation had to be re-activated due to “[being a] victim of fraud”. An online activation option was offered (like the actual Windows activation process), but was unavailable, requiring the user to call one of six international numbers to input a 6-digit code. While the malware claimed that this call would be free, it was routed through a rogue operator in a country with high international phone rates, who placed the call on hold, causing the user to incur large international long distance charges.[13]

In February 2013, a ransomware Trojan based on the Stamp.EK exploit kit surfaced; the malware was distributed via sites hosted on the project hosting services SourceForge and GitHub that claimed to offer “fake nude pics” of celebrities.[48] In July 2013, an OS X-specific ransomware Trojan surfaced, which displays a web page that accuses the user of downloading pornography. Unlike its Windows-based counterparts, it does not block the entire computer, but simply exploits the behavior of the web browser itself to frustrate attempts to close the page through normal means.[49]

In July 2013, a 21-year-old man from Virginia, whose computer coincidentally did contain pornographic photographs of underaged girls with whom he had conducted sexualized communications, turned himself in to police after receiving and being deceived by ransomware purporting to be an FBI message accusing him of possessing child pornography. An investigation discovered the incriminating files, and the man was charged with child sexual abuse and possession of child pornography.[50]

Leakware (also called Doxware)

The converse of ransomware is a cryptovirology attack that threatens to publish stolen information from the victim’s computer system rather than deny the victim access to it.[51] In a leakware attack, malware exfiltrates sensitive host data either to the attacker or alternatively, to remote instances of the malware, and the attacker threatens to publish the victim’s data unless a ransom is paid. The attack was presented at West Point in 2003 and was summarized in the book Malicious Cryptography as follows, “The attack differs from the extortion attack in the following way. In the extortion attack, the victim is denied access to its own valuable information and has to pay to get it back, where in the attack that is presented here the victim retains access to the information but its disclosure is at the discretion of the computer virus”.[52] The attack is rooted in game theory and was originally dubbed “non-zero sum games and survivable malware”. The attack can yield monetary gain in cases where the malware acquires access to information that may damage the victim user or organization, e.g., reputational damage that could result from publishing proof that the attack itself was a success.

Mobile ransomware

With the increased popularity of ransomware on PC platforms, ransomware targeting mobile operating systems have also proliferated. Typically, mobile ransomware payloads are blockers, as there is little incentive to encrypt data since it can be easily restored via online synchronization.[53] Mobile ransomware typically targets the Android platform, as it allows applications to be installed from third-party sources.[53][54] The payload is typically distributed as an APK file installed by an unsuspecting user; it may attempt to display a blocking message over top of all other applications,[54] while another used a form of clickjacking to cause the user to give it “device administrator” privileges to achieve deeper access to the system.[55]

Different tactics have been used on iOS devices, such as exploiting iCloud accounts and using the Find My iPhone system to lock access to the device.[56] On iOS 10.3, Apple patched a bug in the handling of JavaScript pop-up windows in Safari that had been exploited by ransomware websites.[57]

Notable examples

Reveton

A Reveton payload, fraudulently claiming that the user must pay a fine to the Metropolitan Police Service

In 2012, a major ransomware Trojan known as Reveton began to spread. Based on the Citadel Trojan (which itself, is based on the Zeus Trojan), its payload displays a warning purportedly from a law enforcement agency claiming that the computer has been used for illegal activities, such as downloading unlicensed software or child pornography. Due to this behaviour, it is commonly referred to as the “Police Trojan”.[58][59][60] The warning informs the user that to unlock their system, they would have to pay a fine using a voucher from an anonymous prepaid cash service such as Ukash or Paysafecard. To increase the illusion that the computer is being tracked by law enforcement, the screen also displays the computer’s IP address, while some versions display footage from a victim’s webcam to give the illusion that the user is being recorded.[6][61]

Reveton initially began spreading in various European countries in early 2012.[6] Variants were localized with templates branded with the logos of different law enforcement organizations based on the user’s country; for example, variants used in the United Kingdom contained the branding of organizations such as the Metropolitan Police Service and the Police National E-Crime Unit. Another version contained the logo of the royalty collection society PRS for Music, which specifically accused the user of illegally downloading music.[62] In a statement warning the public about the malware, the Metropolitan Police clarified that they would never lock a computer in such a way as part of an investigation.[6][14]

In May 2012, Trend Micro threat researchers discovered templates for variations for the United States and Canada, suggesting that its authors may have been planning to target users in North America.[63] By August 2012, a new variant of Reveton began to spread in the United States, claiming to require the payment of a $200 fine to the FBI using a MoneyPak card.[7][8][61]In February 2013, a Russian citizen was arrested in Dubai by Spanish authorities for his connection to a crime ring that had been using Reveton; ten other individuals were arrested on money laundering charges.[64] In August 2014, Avast Software reported that it had found new variants of Reveton that also distribute password stealing malware as part of its payload.[65]

CryptoLocker

Encrypting ransomware reappeared in September 2013 with a Trojan known as CryptoLocker, which generated a 2048-bit RSA key pair and uploaded in turn to a command-and-control server, and used to encrypt files using a whitelist of specific file extensions. The malware threatened to delete the private key if a payment of Bitcoin or a pre-paid cash voucher was not made within 3 days of the infection. Due to the extremely large key size it uses, analysts and those affected by the Trojan considered CryptoLocker extremely difficult to repair.[23][66][67][68]Even after the deadline passed, the private key could still be obtained using an online tool, but the price would increase to 10 BTC—which cost approximately US$2300 as of November 2013.[69][70]

CryptoLocker was isolated by the seizure of the Gameover ZeuS botnet as part of Operation Tovar, as officially announced by the U.S. Department of Justice on 2 June 2014. The Department of Justice also publicly issued an indictment against the Russian hacker Evgeniy Bogachev for his alleged involvement in the botnet.[71][72] It was estimated that at least US$3 million was extorted with the malware before the shutdown.[10]

CryptoLocker.F and TorrentLocker

In September 2014, a wave of ransomware Trojans surfaced that first targeted users in Australia, under the names CryptoWall and CryptoLocker (which is, as with CryptoLocker 2.0, unrelated to the original CryptoLocker). The Trojans spread via fraudulent e-mails claiming to be failed parcel delivery notices from Australia Post; to evade detection by automatic e-mail scanners that follow all links on a page to scan for malware, this variant was designed to require users to visit a web page and enter a CAPTCHA code before the payload is actually downloaded, preventing such automated processes from being able to scan the payload. Symantec determined that these new variants, which it identified as CryptoLocker.F, were again, unrelated to the original CryptoLocker due to differences in their operation.[73][74] A notable victim of the Trojans was the Australian Broadcasting Corporation; live programming on its television news channel ABC News 24 was disrupted for half an hour and shifted to Melbourne studios due to a CryptoWall infection on computers at its Sydney studio.[75][76][77]

Another Trojan in this wave, TorrentLocker, initially contained a design flaw comparable to CryptoDefense; it used the same keystream for every infected computer, making the encryption trivial to overcome. However, this flaw was later fixed.[35] By late-November 2014, it was estimated that over 9,000 users had been infected by TorrentLocker in Australia alone, trailing only Turkey with 11,700 infections.[78]

CryptoWall

Another major ransomware Trojan targeting Windows, CryptoWall, first appeared in 2014. One strain of CryptoWall was distributed as part of a malvertising campaign on the Zedo ad network in late-September 2014 that targeted several major websites; the ads redirected to rogue websites that used browser plugin exploits to download the payload. A Barracuda Networks researcher also noted that the payload was signed with a digital signature in an effort to appear trustworthy to security software.[79] CryptoWall 3.0 used a payload written in JavaScript as part of an email attachment, which downloads executables disguised as JPG images. To further evade detection, the malware creates new instances of explorer.exe and svchost.exe to communicate with its servers. When encrypting files, the malware also deletes volume shadow copies, and installs spyware that steals passwords and Bitcoin wallets.[80]

The FBI reported in June 2015 that nearly 1,000 victims had contacted the bureau’s Internet Crime Complaint Center to report CryptoWall infections, and estimated losses of at least $18 million.[11]

The most recent version, CryptoWall 4.0, enhanced its code to avoid antivirus detection, and encrypts not only the data in files but also the file names.[81]

Fusob

Fusob is one of the major mobile ransomware families. Between April 2015 and March 2016, about 56 percent of accounted mobile ransomwares was Fusob.[82]

Like a typical mobile ransomware, it employs scare tactics to extort people to pay a ransom.[83] The program pretends to be an accusatory authority, demanding the victim to pay a fine from $100 to $200 USD or otherwise face a fictitious charge. Rather surprisingly, Fusob suggests using iTunes gift cards for payment. Also, a timer clicking down on the screen adds to the users’ anxiety as well.

In order to infect devices, Fusob masquerades as a pornographic video player. Thus, victims, thinking it is harmless, unwittingly download Fusob.[84]

When Fusob is installed, it first checks the language used in the device. If it uses Russian or certain Eastern European languages, Fusob does nothing. Otherwise, it proceeds on to lock the device and demand ransom. Among victims, about 40% of them are in Germany with the United Kingdom and the United States following with 14.5% and 11.4% respectively.

Fusob has lots in common with Small, which is another major family of mobile ransomware. They represented over 93% of mobile ransomwares between 2015 and 2016.

WannaCry

In May 2017, the WannaCry ransomware attack spread though the Internet, using an exploit vector that Microsoft had issued a “Critical” patch for (MS17-010) two months before on March 14, 2017. The ransomware attack infected over 75,000 users in over 99 countries, using 20 different languages to demand money from users. The attack affected Telefónica and several other large companies in Spain, as well as parts of the British National Health Service (NHS),[85] FedEx, Deutsche Bahn, as well as the Russian Interior Ministry and Russian telecom MegaFon.[86]

Mitigation

As with other forms of malware, security software might not detect a ransomware payload, or, especially in the case of encrypting payloads, only after encryption is under way or complete, particularly if a new version unknown to the protective software is distributed.[87] If an attack is suspected or detected in its early stages, it takes some time for encryption to take place; immediate removal of the malware (a relatively simple process) before it has completed would stop further damage to data, without salvaging any already lost.[88][89]

Alternately, new categories of security software, specifically deception technology, can detect ransomware without using a signature-based approach. Deception technology utilizes fake SMB shares which surround real IT assets. These fake SMB data shares deceive ransomware, tie the ransomware up encrypting these false SMB data shares, alert and notify cyber security teams which can then shut down the attack and return the organization to normal operations. There are multiple vendors[90] that support this capability with multiple announcements in 2016.[91]

Security experts have suggested precautionary measures for dealing with ransomware. Using software or other security policies to block known payloads from launching will help to prevent infection, but will not protect against all attacks. Keeping “offline” backups of data stored in locations inaccessible to the infected computer, such as external storage drives, prevents them from being accessed by the ransomware, thus accelerating data restoration.[23][92]

There are a number of tools intended specifically to decrypt files locked by ransomware, although successful recovery may not be possible.[2][93] If the same encryption key is used for all files, decryption tools use files for which there are both uncorrupted backups (plaintext in the jargon of cryptanalysis) and encrypted copies; recovery of the key, if it is possible, may take several days.[94]

See also

References

WannaCry ransomware attack

From Wikipedia, the free encyclopedia
WannaCry ransomware attack
Wana Decrypt0r screenshot.png

Screenshot of the ransom note left on an infected system
Date 12 May 2017 (ongoing)
Location Worldwide
Also known as WannaCrypt, WanaCrypt0r
Type Cyber-attack
Theme Ransomware encrypting hard disk with $300 demand
Cause EternalBlue exploit
Participants Unknown
Outcome More than 230,000 computers infected[1]

WannaCry, also known by the names WannaCrypt,[2] WanaCrypt0r 2.0,[3] Wanna Decryptor[4] and other similar names, is a ransomware program targeting Microsoft Windows. In May 2017, a large cyber-attack using it was launched, infecting over 230,000 computers in 99 countries, demanding ransom payments in bitcoin in 28 languages. The attack has been described by Europol as unprecedented in scale.[5]

The attack affected Telefónica and several other large companies in Spain, as well as parts of Britain’s National Health Service (NHS),[6] FedEx and Deutsche Bahn.[7][8][9] Other targets in at least 99 countries were also reported to have been attacked around the same time.[10][11]

WannaCry is believed to use the EternalBlue exploit, which was developed by the U.S. National Security Agency[12][13] to attack computers running Microsoft Windows operating systems.[3][14] Although a patch to remove the underlying vulnerability had been issued on 14 March 2017,[15] delays in applying security updates left some users and organisations vulnerable.[16] Microsoft has taken the unusual step of releasing updates for the unsupported Windows XP and Windows Server 2003 and patches for Windows 8 operating systems.[2][17]

A kill switch has been found in the code, which prevents new infections. This has been activated by researchers and should slow or stop the spread. However, different versions of the attack may be released and all vulnerable systems still have an urgent need to be patched.

Background

The purported infection vector, EternalBlue, was released by the hacker group The Shadow Brokers on 14 April 2017,[18][19] along with other tools apparently leaked from Equation Group, which is believed to be part of the United States National Security Agency.[20][21]

EternalBlue exploits vulnerability MS17-010[15] in Microsoft‘s implementation of the Server Message Block (SMB) protocol. Microsoft had released a “Critical” advisory, along with an update patch to plug the vulnerability a month before, on 14 March 2017.[15] This patch only fixed Windows Vista and later operating systems but not the older Windows XP.

Countries initially affected[22]

On 12 May 2017, WannaCry began affecting computers worldwide.[23] After gaining access to the computers, via local area network (LAN), an email attachment, or drive-by download, the ransomware encrypts the computer’s hard disk drive,[24][25] then attempts to exploit the SMB vulnerability to spread to random computers on the Internet,[26] and “laterally” between computers on the same LAN.[27] As with other modern ransomware, the payload displays a message informing the user that files have been encrypted, and demands a payment of $300 in bitcoin within three days.

The Windows vulnerability is not a zero-day flaw, but one for which Microsoft had made available a security patch on 14 March 2017,[15] nearly two months before the attack. The patch was to the Server Message Block (SMB) protocol used by Windows.[28] Organizations that lacked this security patch were affected for this reason, although there is so far no evidence that any were specifically targeted by the ransomware developers.[28] Any organization still running the older Windows XP[29] were at particularly high risk because until 13 May,[2] no security patches had been released since April 2014.[30] Following the attack, Microsoft released a security patch for Windows XP.[2]

According to Wired, affected systems will also have had the DOUBLEPULSAR backdoor installed; this will also need to be removed when systems are cleaned up.[31]

Impact

The ransomware campaign was unprecedented in scale according to Europol.[5] The attack affected many NHS hospitals in the UK.[32] On 12 May, some NHS services had to turn away non-critical emergencies, and some ambulances were diverted.[7][33] In 2016, thousands of computers in 42 separate NHS trusts in England were reported to be still running Windows XP.[29]Nissan Motor Manufacturing UK in Tyne and Wear, one of Europe‘s most productive car manufacturing plants, halted production after the ransomware infected some of their systems. Renault also stopped production at several sites in an attempt to stop the spread of the ransomware.[34][35]

List of affected organizations

Response

Several hours after the initial release of the ransomware on 12 May 2017, a “kill switch” hardcoded into the malware was discovered. This allowed the spread of the initial infection to be halted by registering a domain name.[52] However, the kill switch appears to be a coding mistake on the part of the criminals, and variants without the kill switch are expected to be created.[53][54]

Reactions

Upon learning about the impact on the NHS, Edward Snowden said that if the NSA “had privately disclosed the flaw used to attack hospitals when they found it, not when they lost it, [the attack] may not have happened”.[55]

British Prime Minister Theresa May said of the ransomware, “This is not targeted at the NHS. It is an international attack. A number of countries and organizations have been affected.”[56]

Microsoft has created security patches for its now-unsupported versions of Windows, including Windows XP, Windows 8 and Windows Server 2003.[57]

See also

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The Pronk Pops Show 880, April 25, 2017, Story 1: Bluff, Bombast, Bust, Bang, Boom–World War III With North Korea and Communist China? — Videos– Story 2: Operation Gotham Shield 2017 — Simulation of Nuclear and EMP Attack Over New York City — Videos — Story 3: Barrier, Fence, Double Fence, Wall, Border Security — No Budget — No Deal — Democrats Shutdown Government? — Videos —

Posted on April 25, 2017. Filed under: American History, Banking System, Blogroll, Breaking News, Budgetary Policy, Congress, Countries, Culture, Donald J. Trump, Donald Trump, Economics, Education, Empires, Employment, Energy, Federal Government, Fiscal Policy, Government, Government Spending, Health, History, House of Representatives, Independence, Investments, Labor Economics, National Interest, Networking, News, Nuclear Weapons, Philosophy, Photos, Politics, Polls, President Trump, Radio, Raymond Thomas Pronk, Rule of Law, Science, Security, Social Networking, Tax Policy, United States of America, Videos, Wealth, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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Image result for world war 3 starts in north koreaImage result for Operation Gotham Shield 2017Image result for branco cartoons trump wallStory 1: Bluff, Bombast, Bust, Bang, Boom–World War III With North Korea and Communist China? — Videos–

Image result for north korea world war 3Image result for north korea world war 3Image result for north korea world war 3

North Korea looking for a fight with US?

North Korea Threatens to Sink U.S. Aircraft Carrier

News Wrap: Trump calls North Korea situation ‘unacceptable’ – North Korea Fan

U.S BOMBERS ON HIGH ALERT After North Korea Threatens to Sink Approaching US Carrier

China warns North Korea could ‘cross the point of no return’ with sixth nuke test

North Korea reveals WHERE nuclear war with ‘fanatic’ US will break out

RARE! Entire US Senate to Go to White House for North Korea Briefing

U.S. aircraft carrier nears South Korea

Aircraft Carrier USS Carl Vinson CVN 70, Submarine USS Michigan, Target North Korea

Story 2: Operation Gotham Shield 2017 — Simulation of Nuclear and EMP Attack Over New York City — Videos

Image result for Operation Gotham Shield 2017 
Image result for Operation Gotham Shield 2017Image result for Operation Gotham Shield 2017Image result for Operation Gotham Shield 2017

April 24-26 2017 — Operation Gotham Shield 2017

4/24/17 Why Operation Gotham Shield Needs Your Attention – Alex Jones Infowars

Why Operation Gotham Shield Needs Your Attention

Operation Gotham Shield | NYC & NJ on April 24th – 26th

What is an EMP? The 60 second answer

What’s an electromagnetic pulse attack?

Prepping For An EMP

JEANINE PIRRO: “Lights Out: The Danger to US Power Grid” – The EMP Threat

Are You Prepared For An EMP Attack?

Washington D.C. To Hold Massive “Coordinated Terror Attack” Drill This Wednesday

April 26th is shaping up to be a busy day.

As we reported on Friday, that’s when Operation Gotham Shield, an exercise involving FEMA, Homeland Security and a myriad of law enforcement and military agencies and which simulates a nuclear bomb blast over Manhattan, is set to conclude.

Then, as we learned earlier, April 26 is also when the entire Senate will be briefed by Donald Trump and his four top defense and military officials on the situation in North Korea at the White House, an event which Reuters dubbed as “unusual.”

April 26 is also when the USS Carl Vinson is expected to finally arrive off the coast of the Korean Penninsula.

Now, in a statement from the Metropolitan Washington Council of Governments, the regional association reports that “law enforcement officials and other first responders will participate in a full-scale exercise on April 26 designed to prepare for the possibility of a complex coordinated terror attack in the National Capital Region.”

The statement adds that emergency managers who work together at the Metropolitan Washington Council of Governments (COG) planned the exercise to help protect residents by preparing for an attack involving multiple target locations and teams of perpetrators.

The exercise will be conducted across a widespread geographical area. According to the release, the regional exercise will be staged at six sites in the District of Columbia, suburban Maryland and Northern Virginia, and will involve hundreds of police, fire, and emergency medical service personnel and volunteer actors.

The locations include neighborhoods in the northeast and southeast quadrants of the District of Columbia, Prince George’s County, and Arlington and Fairfax Counties.  Residents in those neighborhoods will be notified ahead of time to expect the exercise.

According to Scott Boggs, Managing Director of Homeland Security and Public Safety at COG, “Law enforcement officials practice and exercise their skills on their own regularly because that’s the best way to ensure we are always ready to respond quickly and professionally. On April 26, we’ll go one step further and stage a very realistic emergency event involving multiple sites and actors posing as the casualties.  However, there is no reason for residents to be alarmed because the exercise will occur in a controlled environment.

The is scheduled to take place near or at George Mason University, and last from 8;30am until 4:30pm.

The statement also advises that the only media availability will be in a one hour block before the exercise, from 7:30am – 8:30am on April 26.

Full statement below (link).

http://www.zerohedge.com/news/2017-04-24/washington-dc-area-hold-massive-drill-preparation-complex-coordinated-terror-attack-

Operation Gotham Shield: Is there a connection between massive power outages and the nuclear EMP drill?

Are Today’s Massive Power Outages Really Secretly Part of the Operation Gotham Shield Nuclear EMP Drill?

TDW News

nnew york city cnukeWhen Russia holds a massive civil defense drill for nuclear war, the government informs its people and even includes them.When the US government does it however, they do it in secret, even using natural disasters as cover, meanwhile keeping the civilian population in the dark and telling them as little as possible.

The fact that there are massive power outages today of all days in San Francisco, LA and specifically New York City — causes reportedly still unknown at this time — seems like anything but a coincidence with everything else going on right now including a massive NYC-area 10 kiloton nuclear blast and EMP drill called Operation Gotham Shield.

Power Outages

NYC
The first massive power outage today occurred in New York City just before 6 am after the power inexplicably went down at the 7th avenue and 53rd street subway station, causing a chain reaction through the rest of NYC’s subway system. MTA did not get the generators back up and running until around 11:30. Delays are still rampant.

LA
A few hours later, outages began being reported around Los Angeles, including at the LA airport.

San Francisco
This one is reportedly the worst. Some 90,000 people are still without power all around downtown San Francisco as of 1 pm this afternoon. Businesses are shuttered, transportation systems are shut down, whole skyscrapers are dark. People are calling the whole scene “surreal”. Again, the cause of the outage still has not been explained.

Operation Gotham Shield

All of this is coinciding with the Operation Gotham Shield drill being held in the NYC area; depending on who you ask, it’s even going on right now, but again, we civilians (read: peons) are being mostly kept in the dark about the huge drill. One set of dates says the drill started on April 18th and will run through May 5th. Another set of dates say the actual nuke/EMP simulation part of the drill won’t happen until April 24th–26th.

As Mac Slavo of SHTFPlan.com reported yesterday:

[Gotham Shield] is a tabletop, joint agency exercise involving FEMA, Homeland Security and a myriad of law enforcement and military agencies. WMD, chemical and biological units will all be on hand as a response is tested for a “simulated” nuclear detonation over the United States’ foremost urban center, in the iconic and densely populated island of Manhattan and nearby shores of New Jersey.

According to the Voice of Reason:

On April 18th thru May 5th, 2017, state, local, and federal organizations alike are planning for Operation Gotham Shield 2017 — a major nuclear detonation drill in the New York-New Jersey area, along with the U.S.-Canadian border. During this exercise, 4 nuclear devices, 2 of which are rendered “safe” during the U.S. Department of Defense (DOD) Vital Archer Exercise, and one successful 10kt detonation in the NYC/NJ area, along with one smaller detonation on the U.S./Canadian border are to take place.

Among the organizations involved are:

– U.S. Department of Energy (DOE)

– U.S. Department of Defense (DOD)

– U.S. Domestic Nuclear Detection Office (DNDO)

– U.S. Federal Bureau of Investigation (FBI)

– U.S. Federal Emergency Management Agency (FEMA)

– U.S. Northern Command (NORTHCOM)

– State of New Jersey Office of Emergency Management

– State of New York Office of Emergency Management

– City of New York Office of Emergency Management

And many more…

So the chances that we’re suddenly having totally random “unexplained” massive power outages in major cities, starting specifically in the one where this massive nuclear war/EMP drill is currently going down and it is all simply a coincidence seem poor at best.

Slavo continues:

The potential for a more explosive false flag to spin out of control, by hijacking and ‘converting’ the simulated actions, is all too real.

This is closely related to the mechanism that many researchers believe was at work on the day of 9/11, nesting a false flag attack inside of a series of large-scale training operations which invoked emergency powers and simulated attacks in locations that were actually hit.

Stay vigilant, people.

___
http://dailywesterner.com/news/2017-04-21/are-todays-massive-power-outages-really-secretly-part-of-the-operation-gotham-shield-nuclear-emp-drill/

Story 3: Barrier, Fence, Double Fence, Wall, Border Security — No Budget — No Deal — Democrats Shutdown Government? — Videos —

Image result for branco cartoons trump wall

Image result for branco cartoons trump wall

Will the US government shut down on Trump’s 100th Day in Office?

Border wall battle fuels shutdown showdown

Could border wall budget fight lead to government shutdown?

Chuck Todd INTERROGATES Trump Chief of Staff Reince Priebus

Tucker Carlson: Border wall a threat to Democrats’ power

Trump’s Push for Border Wall Threatens to Cause Government Shutdown

Panel Discuss Will Trump Shut Down Government Over Wall Funding? @amandacarpenter @neeratanden

Trump’s ‘big, beautiful wall’ collides with Congress

Liz Goodwin

Senior National Affairs Reporter
Yahoo News April 25, 2017

President Trump reportedly backed off his demand that Congress include a down payment for a wall spanning the entire U.S.-Mexico border in a crucial spending bill that must pass by Friday night to keep the government funded.

Republican lawmakers have urged the president to focus on border security in general instead of the wall, which Democrats have called a poison pill that would cause them to reject the bill and shut down the government.

Trump told a group of conservative reporters he invited to the White House on Monday that he was open to getting funding for the wall in September when Congress debates the 2018 budget, the Associated Press reported. This is a sharp reversal from his position over the weekend and early Monday, when he doubled down on his demand for the wall. Trump tweeted repeatedly that the wall is necessary to stop the flow of drugs into the United States.

“If the wall is not built, which it will be, the drug situation will NEVER be fixed the way it should be!” Trump exclaimed Monday, adding: “#BuildTheWall.”

On Tuesday morning, the president claimed he had not changed his position on the wall as the “fake media” was claiming, but he didn’t specify whether he still believed he would get the funds in this week’s spending bill, which increasingly looks like a political impossibility.

Don’t let the fake media tell you that I have changed my position on the WALL. It will get built and help stop drugs, human trafficking etc.

The president may have realized that with Democrats ready to shut down the government over the wall and many lawmakers in his own party skeptical of it, there was little chance of reaching a deal on his signature campaign promise before the Friday night deadline. Some critics noted that Trump had long promised that Mexico — and not the U.S. — would pay for the wall’s construction.

Minority Leader Chuck Schumer, D-N.Y., praised Trump in a statement for taking the wall “off the table.” He had earlier called the demand a “monkey wrench” the president had thrown into sensitive negotiations between the parties over a series of spending bills to keep the government funded for the next five months.

A view of the U.S.-Mexican border fence at Playas de Tijuana in Mexico. (Photo: Justin Sullivan/Getty Images)

View photos

 

A view of the U.S.-Mexican border fence at Playas de Tijuana in Mexico. (Photo: Justin Sullivan/Getty Images)
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But it’s possible the president will find a way to declare victory even if his call for a wall goes unanswered by Congress. Several Republican senators urged the president to think of the “big, beautiful wall” he promised on the campaign trail as symbolic of border security in general. That way, the president could declare any increase in border spending in the spending bill a victory, right as his presidency passes the symbolic 100-day mark on Friday.

“Border walls and fences are part of an overall plan, but there will never be a 2,200-mile wall built. Period,” Sen. Lindsey Graham, R-S.C., told reporters Monday evening. “I think [the wall] has become symbolic for better border security. So it’s a code word for better border security.”

Graham said the president would still be in “good shape” if he gets funding for border security in the spending bill that’s not specifically for a wall.

Congress readies for border wall fight neither party seems to want

Sen. Thom Tillis, R-N.C., also pushed for interpreting “border wall” as border security in general. “I know it’s being generally referred to as a border wall, but I think it’s the efforts to make sure that Border Patrol can have adequate funding for the people, technology and infrastructure they think they need to secure [the border],” Tillis said. “I think we can be less prescriptive about exactly what the structure looks like and more focused on the fact that we need to secure the border.”

Both House Minority Leader Nancy Pelosi, D-Calif., and Schumer have signaled openness to funding border security in the spending bill as long as it doesn’t go to construction of a wall or the “deportation force” Trump mentioned during the campaign. The Democrats could theoretically agree to funds for more surveillance technology on the border, or to hire and train more border patrol agents. But it’s harder to imagine them supporting an increase in Immigration and Customs Enforcement (ICE) agents, since they enforce immigration laws internally in the United States and not at the borders.

Meanwhile, one of the president’s staunchest defenders in Congress defended the delay of the president’s campaign promise, urging Americans to be patient.

“He said we would build a wall and Mexico would pay for it, … but he never said when,” Rep. Louie Gohmert, R-Texas, said Monday night on Fox Business. “Some things just take time and don’t occur real quick. I think that’s the way with the wall.”

https://ca.news.yahoo.com/trumps-big-beautiful-wall-collides-congress-102804089.html

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The Pronk Pops Show 862, March 28, 2017, Story 1: Energy Independence and An Industrial Renaissance — Jobs — Jobs — Jobs — Making America Great Again — Videos — Story 2: Repeal and Replacement of Obamacare Bill Will Back Shortly — Stay Tuned — Videos

Posted on March 28, 2017. Filed under: American History, Blogroll, Breaking News, Chemistry, China, Coal, Coal, Congress, Constitutional Law, Corruption, Countries, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Economics, Energy, Environment, Foreign Policy, Geology, Government, Government Spending, History, House of Representatives, Illegal Immigration, Immigration, Law, Natural Gas, Natural Gas, News, Nuclear, Oil, Oil, Philosophy, Photos, Politics, President Barack Obama, President Trump, Private Sector Unions, Public Sector Unions, Radio, Raymond Thomas Pronk, Resources, Rule of Law, Science, Senate, Solar, Taxation, Taxes, Transportation, Unions, United States of America, Videos, Wealth, Weather, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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The Pronk Pops Show Podcasts

Pronk Pops Show 862: March 28, 2017

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Pronk Pops Show 859: March 23, 2017

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Pronk Pops Show 834: February 8, 2017

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Pronk Pops Show 826: January 27, 2017

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Pronk Pops Show 824: January 25, 2017

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Pronk Pops Show 817: January 13, 2017

Pronk Pops Show 816: January 12, 2017

Pronk Pops Show 815: January 11, 2017

Pronk Pops Show 814: January 10, 2017

Pronk Pops Show 813: January 9, 2017

Pronk Pops Show 812: December 12, 2016

Pronk Pops Show 811: December 9, 2016

Pronk Pops Show 810: December 8, 2016

Pronk Pops Show 809: December 7, 2016

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Story 1: Energy Independence and An Industrial Renaissance — Jobs — Jobs — Jobs — Making America Great Again — Videos —

Image result for cartoons climate change brancoImage result for president trump signs executive order energy
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Obama’s Promise the Bankrupt the Coal Industry

What does a coal plant scrubber look like?

Trump signs order undoing Obama climate regulations

President Trump Full Speech at an Energy Independence Executive Order Signing 3/28/17

President Trump Signs an Energy Independence Executive Order

MidAmerican Energy Coal-Fueled Power Plant Virtual Tour

Coal Fired Power Plant

Coal Power Plant

MIT Professor Richard Lindzen On the Corruption of Climate Science

Nobel Laureate Smashes the Global Warming Hoax

Nobel Laureate in Physics; “Global Warming is Pseudoscience”

Freeman Dyson on the Global Warming Hysteria April, 2015

The Great Global Warming Swindle Full Movie

Climate Fraud! Global Warming Hoax! Professor John R. Christy

Climate Scientist: Global Warming for Dummies and Activists

Global Warming / Climate Change Hoax – Dr. Roy Spencer (1)

Dr David Evans: Global Warming is Manmade? (1 of 2)

Dr David Evans: Global Warming is Manmade? (2 of 2)

Dr David Evans: Politics of Global Warming

Climate Change in 12 Minutes – The Skeptic’s Case

The Global Warming Hoax Explained for Dummies

George Carlin on Global Warming

By Valerie Volcovici and Jeff Mason | WASHINGTON

U.S. President Donald Trump signed an executive order on Tuesday to undo a slew of Obama-era climate change regulations that his administration says is hobbling oil drillers and coal miners, a move environmental groups have vowed to take to court.

The decree’s main target is former President Barack Obama’s Clean Power Plan that required states to slash carbon emissions from power plants – a critical element in helping the United States meet its commitments to a global climate change accord reached by nearly 200 countries in Paris in 2015.

The so-called “Energy Independence” order also reverses a ban on coal leasing on federal lands, undoes rules to curb methane emissions from oil and gas production, and reduces the weight of climate change and carbon emissions in policy and infrastructure permitting decisions.

“I am taking historic steps to lift restrictions on American energy, to reverse government intrusion, and to cancel job-killing regulations,” Trump said at the Environmental Protection Agency headquarters, speaking on a stage lined with coal miners.

The wide-ranging order is the boldest yet in Trump’s broader push to cut environmental regulation to revive the drilling and mining industries, a promise he made repeatedly during the presidential campaign. But energy analysts and executives have questioned whether the moves will have a big effect on their industries, and environmentalists have called them reckless.

“I cannot tell you how many jobs the executive order is going to create but I can tell you that it provides confidence in this administration’s commitment to the coal industry,” Kentucky Coal Association president Tyler White told Reuters.

Trump signed the order with EPA Administrator Scott Pruitt, Interior Secretary Ryan Zinke, Energy Secretary Rick Perry and Vice President Mike Pence by his side.

U.S. presidents have aimed to reduce U.S. dependence on foreign oil since the Arab oil embargo of the 1970s, which triggered soaring prices. But the United States still imports about 7.9 million barrels of crude oil a day, almost enough meet total oil demand in Japan and India combined.

U.S. President Donald Trump holds up an executive order on ‘energy independence,’ eliminating Obama-era climate change regulations, during a signing ceremony at the Environmental Protection Agency (EPA) headquarters in Washington, U.S., March 28, 2017. REUTERS/Carlos Barria

While Trump’s administration has said reducing environmental regulation will create jobs, some green groups have countered that rules supporting clean energy have done the same.

The number of jobs in the U.S. wind power industry rose 32 percent last year while solar power jobs rose by 25 percent, according to a Department of Energy study.

‘ASSAULT ON AMERICAN VALUES’

Environmental groups hurled scorn on Trump’s order, arguing it is dangerous and goes against the broader global trend toward cleaner energy technologies.

“These actions are an assault on American values and they endanger the health, safety and prosperity of every American,” said billionaire environmental activist Tom Steyer, the head of activist group NextGen Climate.

Green group Earthjustice was one of many organizations that said it will fight the order both in and out of court. “This order ignores the law and scientific reality,” said its president, Trip Van Noppen.

An overwhelming majority of scientists believe that human use of oil and coal for energy is a main driver of climate change, causing a damaging rise in sea levels, droughts, and more frequent violent storms.

But Trump and several members of his administration have doubts about climate change, and Trump promised during his campaign to pull the United States out of the Paris climate accord, arguing it would hurt U.S. business.

Since being elected Trump has been mum on the Paris deal and the executive order does not address it.

Christiana Figueres, former executive secretary of the United Nations Framework Convention on Climate Change who helped broker the Paris accord, lamented Trump’s order.

“Trying to make fossil fuels remain competitive in the face of a booming clean renewable power sector, with the clean air and plentiful jobs it continues to generate, is going against the flow of economics,” she said.

The order will direct the EPA to start a formal “review” process to undo the Clean Power Plan, which was introduced by Obama in 2014 but was never implemented in part because of legal challenges brought by Republican-controlled states.

The Clean Power Plan required states to collectively cut carbon emissions from power plants by 32 percent below 2005 levels by 2030.

Some 85 percent of U.S. states are on track to meet the targets despite the fact the rule has not been implemented, according to Bill Becker, director of the National Association of Clean Air Agencies, a group of state and local air pollution control agencies.

Trump’s order also lifts the Interior Department’s Bureau of Land Management’s temporary ban on coal leasing on federal property put in place by Obama in 2016 as part of a review to study the program’s impact on climate change and ensure royalty revenues were fair to taxpayers.

It also asks federal agencies to discount the cost of carbon in policy decisions and the weight of climate change considerations in infrastructure permitting, and reverses rules limiting methane leakage from oil and gas facilities.

http://www.reuters.com/article/us-usa-trump-energy-idUSKBN16Z1L6

 Story 2: Repeal and Replacement Bill Will Back Shortly — Videos

Shep Smith goes off on Trump’s incompetent health care strategy on Monday– March 27, 2017.

WASHINGTON — House Republican leaders and the White House, under extreme pressure from conservative activists, have restarted negotiations on legislation to repeal the Affordable Care Act, with House leaders declaring that Democrats were celebrating the law’s survival prematurely.

Just days after President Trump said he was moving on to other issues, senior White House officials are now saying they have hope that they can still score the kind of big legislative victory that has so far eluded Mr. Trump. Vice President Mike Pence was dispatched to Capitol Hill on Tuesday for lunchtime talks.

“We’re not going to retrench into our corners or put up dividing lines,” House Speaker Paul D. Ryan said after a meeting of House Republicans that was dominated by a discussion of how to restart the health negotiations. “There’s too much at stake to get bogged down in all of that.”

The House Republican whip, Steve Scalise of Louisiana, said of Democrats, “Their celebration is premature. We are closer to repealing Obamacare than we ever have been before.”

It is not clear what political dynamics might have changed since Friday, when a coalition of hard-line conservatives and more moderate Republicans torpedoed legislation to repeal President Barack Obama’s signature domestic achievement. The replacement bill would still leave 24 million more Americans without insurance after a decade, a major worry for moderate Republicans. It would also leave in place regulations on the health insurance industry that conservatives find anathema.

Mr. Ryan declined to say what might be in the next version of the Republicans’ repeal bill, nor would he sketch any schedule for action. But he said Congress needed to act because insurers were developing the premiums and benefit packages for health plans they would offer in 2018, with review by federal and state officials beginning soon.

The new talks, which have been going on quietly this week, involve Stephen K. Bannon, the president’s chief strategist, and members of the two Republican factions that helped sink the bill last week, the hard-right Freedom Caucus and the more centrist Tuesday Group.

Any deal would require overcoming significant differences about how to rework a law that covers about one-fifth of the American economy, differences that were so sharp they led Mr. Trump and Mr. Ryan to pull the bill from consideration just as the House was scheduled to vote on Friday.

Still, Republican members of Congress said they hoped that revisiting the issue would lead this time to a solution and a vote in the House.

“I think everyone wants to get to yes and support President Trump,” said Representative Dave Brat, Republican of Virginia and a Freedom Caucus member. “There is a package in there that is a win-win.”

Representative Raúl Labrador of Idaho, another Freedom Caucus member, said he hoped the discussions would yield a compromise that brings the party together after a divisive debate that revealed deep fissures. “I think we will have a better, stronger product that will unify the conference,” Mr. Labrador said.

Mr. Trump has sent mixed signals in recent days, at times blaming the Freedom Caucus, outside groups and even, it appeared, Mr. Ryan. On Monday, for instance, he said in a late-night Twitter post that the Freedom Caucus was able to “snatch defeat from the jaws of victory” over the health care repeal. “After so many bad years they were ready for a win!”

But then he suggested that he could also cut a deal with Democrats, a move that would almost certainly make more conservative members of the House balk. “Don’t worry,” he tweeted later Monday night, “we are in very good shape!”

Mr. Ryan said House Republicans were determined to use the next version of the repeal bill, like the first version, as a vehicle to cut off federal funds for Planned Parenthood clinics.

Asked if he saw any signs that members of the conservative House Freedom Caucus might be willing to compromise, he said: “I don’t want us to become a factionalized majority. I want us to become a unified majority, and that means we’re going to sit down and talk things out until we get there, and that’s exactly what we’re doing.”

“We saw good overtures from those members from different parts of our conference to get there because we all share these goals, and we’re just going to have to figure out how to get it done,” Mr. Ryan said.

Mr. Scalise said that “we’re going to keep working” because “this issue isn’t going away,” and he added: “Obamacare continues to fail the American people. You’re going to continue to see double-digit increases in premiums because Obamacare doesn’t work.”

Democrats took formal steps to get involved in what they called improving the Affordable Care Act. Representative Nancy Pelosi of California, the Democratic leader, sent a letter to House Democrats calling for suggestions in ways to make the health law work better. “We can then discuss these suggestions in our caucus and be prepared at the earliest possible time to go forward,” she said.

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