A Victory In The War Against Profiteering

MEDIA ROOTS- Considering the escalation of the war against whistleblowers, it’s getting more rare to see a lone wolf sacrifice their standing from within the system to do the right thing. Amy Goodman writes for TruthDig about the case of Bunny Greenhouse, former employee of the US Army Corps of Engineers, who courageously blew the whistle on her agency for awarding Halliburton subsidiary KBR a no bid 7 billion dollar contract before the Iraqi invasion even occurred. Instead of being rewarded for exposing the revolving door criminality of political and corporate profiteering within her agency, she was harassed and demoted from her position.

Abby

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TRUTHDIG– “War is a racket,” wrote retired US Marine Major General Smedley D Butler, in 1935. That statement, which is also the title of his short book on war profiteering, rings true today.

One courageous civil servant just won a battle to hold war profiteers accountable. Her name is Bunnatine “Bunny” Greenhouse. She blew the whistle when her employer, the US Army Corps of Engineers, gave a no-bid $7bn contract to the Halliburton subsidiary Kellogg, Brown and Root (KBR) as the US was about to invade Iraq. She was doing her job, trying to ensure a competitive bidding process would save the US government money. For that, she was forced out of her senior position, demoted and harassed.

Just this week, after waging a legal battle for more than half a decade, Bunny Greenhouse won. The US Army Corps of Engineers settled with Greenhouse for $970,000, representing full restitution for lost wages, compensatory damages and attorneys’ fees.

Her “offence” was to challenge the KBR contract. It was weeks before the expected invasion of Iraq, in 2003, and Bush military planners predicted Saddam Hussein would blow up Iraqi oilfields, as happened with the US invasion in 1991. The project, dubbed “Restore Iraqi Oil”, or RIO, was created so that oilfield fires would be extinguished. KBR was owned then by Halliburton, whose CEO until 2000 was none other than then Vice President Dick Cheney. KBR was the only company invited to bid.

Bunny Greenhouse told her superiors that the process was illegal. She was overridden. She said the decision to grant the contract to KBR came from the office of the secretary of defence, run by VP Cheney’s close friend, Donald Rumsfeld. As Bunny Greenhouse told a congressional committee:

    “I can unequivocally state that the abuse related to contracts awarded to KBR represents the most blatant and improper contract abuse I have witnessed during the course of my professional career.”

The oilfields were not set ablaze. Nevertheless, KBR was allowed to retool its $7bn no-bid contract, to provide gasoline and other logistical support to the occupation forces. The contract was so-called “cost-plus”, which means KBR was not on the hook to provide services at a set price. Rather, it could charge its cost, plus a fixed percentage as profit. The more KBR charged, the more profit it made.

As the chief procurement officer, Greenhouse’s signature was required on all contracts valued at more than $10m. Soon after testifying about the egregious RIO contract, she was demoted, stripped of her top secret clearance and began receiving the lowest performance ratings. Before blowing the whistle, she had received the highest ratings. Ultimately, she left work, facing an unbearably hostile workplace.

After years of litigation, attorney Michael Kohn, president of the National Whistleblowers Centre, brought the case to a settlement. He said:

    “Bunny Greenhouse risked her job and career when she objected to the gross waste of federal taxpayer dollars and illegal contracting practices at the Army Corps of Engineers. She had the courage to stand alone and challenge powerful special interests. She exposed a corrupt contracting environment where casual and clubby contracting practices were the norm. Her courage led to sweeping legal reforms that will forever halt the gross abuse she had the courage to expose.”

The National Whistleblowers Centre’s executive director, Stephen Kohn (brother of Michael Kohn), told me:

    “Federal employees have a very, very hard time blowing the whistle … I hope it’s a turning point. The case was hard-fought. It should never have had to been filed. Bunny did the right thing.”

According to Nobel Prize-winning economist Joe Stiglitz, the cost of the wars in Iraq and Afghanistan alone will exceed $5tn. With a cost like this, why isn’t war central to the debate over the national debt?

Two-time congressional medal of honour winner Maj Gen Smedley Butler had it right, 75 years ago, when he said of war:

    “It is possibly the oldest, easily the most profitable, surely the most vicious [racket] … It is the only one in which the profits are reckoned in dollars and the losses in lives … It is conducted for the benefit of the very few, at the expense of the very many.”

As President Barack Obama and Congress claim it is Medicare, Medicaid and social security that are breaking the budget, people should demand that they stop paying for war.

• Written by Amy Goodman, Denis Moynihan contributed research to this column


© 2011 Amy Goodman; distributed by King Features Syndicate

Photo by Flickr user geekvsmachine

9/11 and the Redefinition of ‘Conspiracy Theory’

MEDIA ROOTS- The term “conspiracy theory” has been hijacked by the establishment propaganda machine in order to marginalize anyone in the mainstream political discourse who simply questions the official government or media narrative about an event. This ad hominem attack tool is extremely effective at shutting down serious debates about crucial topics, like whether or not the US government was criminally complicity in the attacks of 9/11. Paul Craig Roberts, former Assistant Secretary of the Treasury and former editor for the Wall Street Journal, writes for Global Research about the Orwellian redefinition of the term and its prevalent use to blanketly demonize 9/11 truth seekers.

Abby

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GLOBAL RESEARCH– While we were not watching, conspiracy theory has undergone Orwellian redefinition.

A “conspiracy theory” no longer means an event explained by a conspiracy.  Instead, it now means any explanation, or even a fact, that is out of step with the government’s explanation and that of its media pimps.  

For example, online news broadcasts of RT have been equated with conspiracy theories by the New York Times simply because RT reports news and opinions that the New York Times does not report and the US government does not endorse.

In other words, as truth becomes uncomfortable for government and its Ministry of Propaganda, truth is redefined as conspiracy theory, by which is meant an absurd and laughable explanation that we should ignore.

When piles of carefully researched books, released government documents, and testimony of eye witnesses made it clear that Oswald was not President John F. Kennedy’s assassin, the voluminous research, government documents, and verified testimony was dismissed as “conspiracy theory.”  

In other words, the truth of the event was unacceptable to the authorities and to the Ministry of Propaganda that represents the interests of authorities.

The purest example of how Americans are shielded from truth is the media’s (including many Internet sites’) response to the large number of professionals who find the official explanation of September 11, 2001, inconsistent with everything they, as experts, know about physics, chemistry, structural engineering, architecture, fires, structural damage, the piloting of airplanes, the security procedures of the United States, NORAD’s capabilities, air traffic control, airport security, and other matters.  These experts, numbering in the thousands, have been shouted down by know-nothings in the media  who brand the experts as “conspiracy theorists.”  

This despite the fact that the official explanation endorsed by the official media is the most extravagant conspiracy theory in human history.  

Let’s take a minute to re-acquaint ourselves with the official explanation, which is not regarded as a conspiracy theory despite the fact that it comprises an amazing conspiracy.  The official truth is that a handful of young Muslim Arabs who could not fly airplanes, mainly Saudi Arabians who came neither from Iraq nor from Afghanistan, outwitted not only the CIA and the FBI, but also all 16  US intelligence agencies and all intelligence agencies of US allies including Israel’s Mossad, which is believed to have penetrated every terrorist organization and which carries out assassinations of those whom Mossad marks as terrorists.

In addition to outwitting every intelligence agency of the United States and its allies, the handful of young Saudi Arabians outwitted the National Security Council, the State Department, NORAD, airport security four times in the same hour on the same morning,  air traffic control, caused the US Air Force to be unable to launch interceptor aircraft,  and caused three well-built steel-structured buildings, including one not hit by an airplane, to fail suddenly in a few seconds as a result of limited structural damage and small, short-lived, low-temperature fires that burned on a few floors.

The Saudi terrorists were even able to confound the laws of physics and cause WTC building seven to collapse at free fall speed for several seconds, a physical impossibility in the absence of explosives used in controlled demolition.

The story that the government and the media have told us amounts to a gigantic conspiracy, really a script for a James Bond film. Yet, anyone who doubts this improbable conspiracy theory is defined into irrelevance by the obedient media.

Anyone who believes an architect, structural engineer, or demolition expert who says that the videos show that the buildings are blowing up, not falling down, anyone who believes a Ph.D. physicist who says that the official explanation is inconsistent with known laws of physics, anyone who believes expert pilots who testify that non-pilots or poorly-qualified pilots cannot fly airplanes in such maneuvers, anyone who believes the 100 or more first responders who testify that they not only heard explosions in the towers but personally experienced explosions, anyone who believes University of Copenhagen nano-chemist Niels Harrit who reports finding unreacted nano-thermite in dust samples from the WTC towers, anyone who is convinced by experts instead of by propaganda is dismissed as a kook.  

In America today, and increasingly throughout the Western world, actual facts and true explanations have been relegated to the realm of kookiness.  Only people who believe lies are socially approved and accepted as patriotic citizens.

Indeed, a writer or newscaster is not even permitted to report the findings of 9/11 skeptics.  In other words, simply to report Professor Harrit’s findings now means that you endorse them or agree with them.  Everyone in the US print and TV media knows that he/she will be instantly fired if they report Harrit’s findings, even with a laugh. Thus, although Harrit has reported his findings on European television and has lectured widely on his findings in Canadian universities, the fact that he and the international scientific research team that he led found unreacted nano-thermite in the WTC dust and have offered samples to other scientists to examine has to my knowledge never been reported in the American media.

Even Internet sites on which I am among the readers’ favorites will not allow me to report on Harrit’s findings.

As I reported earlier, I myself had experience with a Huffington Post reporter who was keen to interview a Reagan presidential appointee who was in disagreement with the Republican wars in the Middle East.  After he published the interview that I provided at his request, he was terrified to learn that I had reported findings of 9/11 investigators.  To protect his career, he quickly inserted on the online interview that my views on the Iraq and Afghanistan invasions could be dismissed as I had reported unacceptable findings about 9/11.

The unwillingness or inability to entertain any view of 9/11 different from the official view dooms to impotence many Internet sites that are opposed to the wars and to the rise of the domestic US police state.  These sites, for whatever the reasons, accept the government’s explanation of 9/11; yet, they try to oppose the  “war on terror” and the police state which are the consequences of accepting the government’s explanation. Trying to oppose the consequences of an event whose explanation you accept is an impossible task.

If you believe that America was attacked by Muslim terrorists and is susceptible to future attacks, then a “war on terror” and a domestic police state to root out terrorists become necessary to make Americans safe. The idea that a domestic police state and open-ended war might be more dangerous threats to Americans than terrorists is an impermissible thought.  

A country whose population has been trained to accept the government’s word and to shun those who question it is a country without liberty in its future.

Written by Paul Craig Roberts

© 2011 Global Research

Photo by flickr user Cliff1066

RELATED: Check out a special 2 1/2 hour Media Roots Radio broadcast breaking apart the 9/11 coincidence theory, or read 9/11: Do We Know the Truth?

Immigrant Rights Group Challenges Referendum

JURIST– The Casa de Maryland immigrant rights group filed a challenge Monday to a public referendum over a Maryland law providing in-state tuition to undocumented college students. The group filed the challenge in the Maryland Circuit Court for Anne Arundel County after opponents of the Maryland DREAM Act collected enough signatures to put the law to a public referendum. Casa de Maryland and eight other individuals are challenging the referendum for two main reasons.

First, they argue that the DREAM Act will result in state tax money going to fund the tuition breaks making it an appropriations measure not subject to repeal by referendum. Second, they argue that over 57,000 signatures on the petition for the referendum are invalid because of the computer system used to collect them. Many of the signatures were submitted through MDPetitions.com, which downloads and prints a “Pre-Filled Petition” that only needs to be signed and mailed in. The website prints out the form with the voters’ information exactly as it appears in their voter registration, necessary for the signature to be valid. But the plaintiffs argue that such a system is invalid because the petitions do not have sufficient verification to be valid under state law:

There are sound policy reasons for requiring … the petitioner signer to fill in his or her own information on the form, rather than allowing that information to be filled in by someone else. Anyone—including someone other than the voter—could have the website generate a “Pre-Filled Petition Form” with that voter’s information pre-printed, both in the signing block and the circulators affidavit. The user (who is not the voter) could then print out the form, sign the voter’s name in the signature space and in circulator’s affidavit and mail the form to MDPetitions.com for submission to the Secretary of State and State Board.

Supporters of the referendum collected over 100,000 signatures [Baltimore Sun report] with broad bipartisan support: 63,487 Republicans, 32,397 Democrats and 12,628 independents. The DREAM Act narrowly passed the Maryland legislature in the final hours of the spring session.

The Maryland DREAM Act is currently suspended pending the public referendum. In order to be eligible for in-state tuition, undocumented residents would have to have attended at least three years of high school in Maryland and show their parents had filed tax returns to the state. The US Congress has considered a similar but more far-reaching bill [legislative materials; text], also entitled the DREAM Act, that would provide a path to permanent resident status for some high school graduates who enter the military or enroll in a college degree program.

Read more about Immigrant Rights Group Challenges Public Referendum to Overturn Maryland’s DREAM Act.

© 2011 Jurist

Photo by Flickr user DreamActivist

Who Rules America? Breaking Down the Top 1%

GLOBAL RESEARCH – This article was written by an investment manager who works with very wealthy clients. I knew him from decades ago, but he recently e-mailed me with some concerns he had about what was happening with the economy. What he had to say was informative enough that I asked if he might fashion what he had told me into a document for the Who Rules America Web site. He agreed to do so, but only on the condition that the document be anonymous, because he does not want to jeopardize his relationships with his clients or other investment professionals.

Below are his thoughts on the disproportion of wealth issued to the top 1%.  Without the use of an income tax calculator, most of us can only speculate as to how this impacts the average American family. Within this article, he paints an accurate portrait as to how this desparity is currently effecting the economy.

G. William Domhoff

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I sit in an interesting chair in the financial services industry. Our clients largely fall into the top 1%, have a net worth of $5,000,000 or above, and if working make over $300,000 per year. My observations on the sources of their wealth and concerns come from my professional and social activities within this group.

Work by various economists and tax experts make it indisputable that the top 1% controls a widely disproportionate share of the income and wealth in the United States. When does one enter that top 1%? (I’ll use “k” for 1,000 and “M” for 1,000,000 as we usually do when communicating with clients or discussing money; thousands and millions take too much time to say.) Available data isn’t exact. but a family enters the top 1% or so today with somewhere around $300k to $400k in pre-tax income and over $1.2M in net worth. Compared to the average American family with a pre-tax income in the mid-$50k range and net worth around $120k, this probably seems like a lot of money. But, there are big differences within that top 1%, with the wealth distribution highly skewed towards the top 0.1%.

The Lower Half of the Top 1%

The 99th to 99.5th percentiles largely include physicians, attorneys, upper middle management, and small business people who have done well. Everyone’s tax situation is, of course, a little different. On earned income in this group, we can figure somewhere around 25% to 30% of total pre-tax income will go to Federal, State, and Social Security taxes, leaving them with around $250k to $300k post tax. This group makes extensive use of 401-k’s, SEP-IRA’s, Defined Benefit Plans, and other retirement vehicles, which defer taxes until distribution during retirement. Typical would be yearly contributions in the $50k to $100k range, leaving our elite working group with yearly cash flows of $175k to $250k after taxes, or about $15k to $20k per month.

Until recently, most studies just broke out the top 1% as a group. Data on net worth distributions within the top 1% indicate that one enters the top 0.5% with about $1.8M, the top 0.25% with $3.1M, the top 0.10% with $5.5M and the top 0.01% with $24.4M. Wealth distribution is highly skewed towards the top 0.01%, increasing the overall average for this group. The net worth for those in the lower half of the top 1% is usually achieved after decades of education, hard work, saving and investing as a professional or small business person. While an after-tax income of $175k to $250k and net worth in the $1.2M to $1.8M range may seem like a lot of money to most Americans, it doesn’t really buy freedom from financial worry or access to the true corridors of power and money. That doesn’t become frequent until we reach the top 0.1%.

I’ve had many discussions in the last few years with clients with “only” $5M or under in assets, those in the 99th to 99.9th percentiles, as to whether they have enough money to retire or stay retired. That may sound strange to the 99% not in this group but generally accepted “safe” retirement distribution rates for a 30 year period are in the 3-5% range with 4% as the current industry standard. Assuming that the lower end of the top 1% has, say, $1.2M in investment assets, their retirement income will be about $50k per year plus maybe $30k-$40k from Social Security, so let’s say $90k per year pre-tax and $75-$80k post-tax if they wish to plan for 30 years of withdrawals. For those with $1.8M in retirement assets, that rises to around $120-150k pretax per year and around $100k after tax. If someone retires with $5M today, roughly the beginning rung for entry into the top 0.1%, they can reasonably expect an income of $240k pretax and around $190k post tax, including Social Security.

While income and lifestyle are all relative, an after-tax income between $6.6k and $8.3k per month today will hardly buy the fantasy lifestyles that Americans see on TV and would consider “rich”. In many areas in California or the East Coast, this positions one squarely in the hard working upper-middle class, and strict budgeting will be essential. An income of $190k post tax or $15.8k per month will certainly buy a nice lifestyle but is far from rich. And, for those folks who made enough to accumulate this much wealth during their working years, the reduction in income and lifestyle during retirement can be stressful. Plus, watching retirement accounts deplete over time isn’t fun, not to mention the ever-fluctuating value of these accounts and the desire of many to leave a substantial inheritance. Our poor lower half of the top 1% lives well but has some financial worries.

Since the majority of those in this group actually earned their money from professions and smaller businesses, they generally don’t participate in the benefits big money enjoys. Those in the 99th to 99.5th percentile lack access to power. For example, most physicians today are having their incomes reduced by HMO’s, PPO’s and cost controls from Medicare and insurance companies; the legal profession is suffering from excess capacity, declining demand and global outsourcing; successful small businesses struggle with increasing regulation and taxation. I speak daily with these relative winners in the economic hierarchy and many express frustration.

Unlike those in the lower half of the top 1%, those in the top half and, particularly, top 0.1%, can often borrow for almost nothing, keep profits and production overseas, hold personal assets in tax havens, ride out down markets and economies, and influence legislation in the U.S. They have access to the very best in accounting firms, tax and other attorneys, numerous consultants, private wealth managers, a network of other wealthy and powerful friends, lucrative business opportunities, and many other benefits. Most of those in the bottom half of the top 1% lack power and global flexibility and are essentially well-compensated workhorses for the top 0.5%, just like the bottom 99%. In my view, the American dream of striking it rich is merely a well-marketed fantasy that keeps the bottom 99.5% hoping for better and prevents social and political instability. The odds of getting into that top 0.5% are very slim and the door is kept firmly shut by those within it.

The Upper Half of the Top 1%

Membership in this elite group is likely to come from being involved in some aspect of the financial services or banking industry, real estate development involved with those industries, or government contracting. Some hard working and clever physicians and attorneys can acquire as much as $15M-$20M before retirement but they are rare. Those in the top 0.5% have incomes over $500k if working and a net worth over $1.8M if retired. The higher we go up into the top 0.5% the more likely it is that their wealth is in some way tied to the investment industry and borrowed money than from personally selling goods or services or labor as do most in the bottom 99.5%. They are much more likely to have built their net worth from stock options and capital gains in stocks and real estate and private business sales, not from income which is taxed at a much higher rate. These opportunities are largely unavailable to the bottom 99.5%.

Recently, I spoke with a younger client who retired from a major investment bank in her early thirties, net worth around $8M. We can estimate that she had to earn somewhere around twice that, or $14M-$16M, in order to keep $8M after taxes and live well along the way, an impressive accomplishment by such an early age. Since I knew she held a critical view of investment banking, I asked if her colleagues talked about or understood how much damage was created in the broader economy from their activities. Her answer was that no one talks about it in public but almost all understood and were unbelievably cynical, hoping to exit the system when they became rich enough.

Folks in the top 0.1% come from many backgrounds but it’s infrequent to meet one whose wealth wasn’t acquired through direct or indirect participation in the financial and banking industries. One of our clients, net worth in the $60M range, built a small company and was acquired with stock from a multi-national. Stock is often called a “paper” asset. Another client, CEO of a medium-cap tech company, retired with a net worth in the $70M range. The bulk of any CEO’s wealth comes from stock, not income, and incomes are also very high. Last year, the average S&P 500 CEO made $9M in all forms of compensation. One client runs a division of a major international investment bank, net worth in the $30M range and most of the profits from his division flow directly or indirectly from the public sector, the taxpayer. Another client with a net worth in the $10M range is the ex-wife of a managing director of a major investment bank, while another was able to amass $12M after taxes by her early thirties from stock options as a high level programmer in a successful IT company. The picture is clear; entry into the top 0.5% and, particularly, the top 0.1% is usually the result of some association with the financial industry and its creations. I find it questionable as to whether the majority in this group actually adds value or simply diverts value from the US economy and business into its pockets and the pockets of the uber-wealthy who hire them. They are, of course, doing nothing illegal.

I think it’s important to emphasize one of the dangers of wealth concentration: irresponsibility about the wider economic consequences of their actions by those at the top. Wall Street created the investment products that produced gross economic imbalances and the 2008 credit crisis. It wasn’t the hard-working 99.5%. Average people could only destroy themselves financially, not the economic system. There’s plenty of blame to go around, but the collapse was primarily due to the failure of complex mortgage derivatives, CDS credit swaps, cheap Fed money, lax regulation, compromised ratings agencies, government involvement in the mortgage market, the end of the Glass-Steagall Act in 1999, and insufficient bank capital. Only Wall Street could put the economy at risk and it had an excellent reason to do so: profit. It made huge profits in the build-up to the credit crisis and huge profits when it sold itself as “too big to fail” and received massive government and Federal Reserve bailouts. Most of the serious economic damage the U.S. is struggling with today was done by the top 0.1% and they benefited greatly from it.

Not surprisingly, Wall Street and the top of corporate America are doing extremely well as of June 2011. For example, in Q1 of 2011, America’s top corporations reported 31% profit growth and a 31% reduction in taxes, the latter due to profit outsourcing to low tax rate countries. Somewhere around 40% of the profits in the S&P 500 come from overseas and stay overseas, with about half of these 500 top corporations having their headquarters in tax havens. If the corporations don’t repatriate their profits, they pay no U.S. taxes. The year 2010 was a record year for compensation on Wall Street, while corporate CEO compensation rose by over 30%, most Americans struggled. In 2010 a dozen major companies, including GE, Verizon, Boeing, Wells Fargo, and Fed Ex paid US tax rates between -0.7% and -9.2%. Production, employment, profits, and taxes have all been outsourced. Major U.S. corporations are currently lobbying to have another “tax-repatriation” window like that in 2004 where they can bring back corporate profits at a 5.25% tax rate versus the usual 35% US corporate tax rate. Ordinary working citizens with the lowest incomes are taxed at 10%.

I could go on and on, but the bottom line is this: A highly complex and largely discrete set of laws and exemptions from laws has been put in place by those in the uppermost reaches of the U.S. financial system. It allows them to protect and increase their wealth and significantly affect the U.S. political and legislative processes. They have real power and real wealth. Ordinary citizens in the bottom 99.9% are largely not aware of these systems, do not understand how they work, are unlikely to participate in them, and have little likelihood of entering the top 0.5%, much less the top 0.1%. Moreover, those at the very top have no incentive whatsoever for revealing or changing the rules. I am not optimistic.

Written by G. William Domhoff

© 2011 Global Research

Photo by Flickr user Maciej Dakowicz

No More Privacy in the Era of Smart Meters

ENDOFTHEAMERICANDREAM– Have you heard about the new “smart meters” that are being installed in homes all across America?  Under the guise of “reducing greenhouse gas emissions” and “reducing energy bills”, utility companies all over the United States are forcing tens of millions of American families to accept sophisticated surveillance devices in their homes.  Currently, approximately 9 percent of all electric meters in the U.S. have been converted over to smart meters. 

It is being projected that by 2012, the number of smart meters in use will rise to 52 million, and the federal government is spending a lot of money to help get these installed everywhere.  Eventually the goal is to have these smart meters in all of our homes and if that ever happened there would essentially be no more privacy.  Once installed, a smart meter monitors your home every single minute of every single day and it transmits very sophisticated data about your personal behavior back to the utility company.

So can’t we just tell the utility companies that we don’t want these stupid things?

Unfortunately, in many areas of the country you can’t.  For example, one outraged resident of California contacted the utility company and was told that if he did not consent to taking a smart meter he would receive no service.

So unless you want to live “off the grid”, what are you going to do?  Can any of us really survive without electricity these days?

The sad truth is that these things are being forced upon us.

It is happening in Europe too.  The European Parliament has set a goal of having smart meters in the homes of 80 percent of all electricity consumers by the year 2020.

Sadly, as these smart meters have gone in there have been reports all over the country of electricity bills increasing dramatically.  There have been mountains of complaints about these things and yet their use keeps spreading.

But of course the biggest issue with smart meters is how they will strip us of our privacy.

The concern is that the incredibly detailed data that these surveillance devices collect will be given or sold to a vast array of third parties.

For example, smart meters are already being used by police to bust marijuana growers.

It is also feared that insurance companies, credit agencies, lawyers, marketing firms and even criminals will be able to get their hands on this data as well.

A recent article posted on the website of the Electronic Frontier Foundation summarized some of the concerns….

“Without strong protections, this information can and will be repurposed by interested parties. It’s not hard to imagine a divorce lawyer subpoenaing this information, an insurance company interpreting the data in a way that allows it to penalize customers, or criminals intercepting the information to plan a burglary. Marketing companies will also desperately want to access this data”

For law enforcement officials, these surveillance devices are a dream come true. According to the Columbus Dispatch, police in central Ohio have been filing at least 60 subpoenas every single month for the energy-use records of those that they suspect are growing pot in their homes.

Well, it turns out that sometimes police are raiding homes that are using a lot of energy and they don’t find any marijuana at all.  Instead, sometimes these raids reveal others kinds of activities….

Sometimes, high electricity use doesn’t lead investigators to drugs. A federal investigation in the Powell area turned into a surprise for detectives.

“We thought it was a major grow operation … but this guy had some kind of business involving computers,” Marotta said. “I don’t know how many computer servers we found in his home.”

So do you want police raiding your home if you start using a little bit too much electricity?

Continue reading about Smart Meters Mean no More Privacy.

© 2011 End of the American Dream

Jerry Day further explains many of these important points in this excellent clip.

Photo by flickr user digitpedia