Saturday, June 29, 2013

Why the MIT Blackjack Team Became Entrepreneurs

The MIT Blackjack Team, made famous by the book 'Bringing Down the House' and the movie '21,' learned important lessons about running a business when they were beating casinos in the '80s and '90s. Key members of the team went on to start influential tech companies like SolidWorks and Stanza and invest in startups. Why did they do that instead of becoming, say, hedge fund managers?

MIT entrepreneurship leader Bill Aulet moderated a team reunion panel in Boston, and he writes that the themes that carry over from blackjack to startups include staying disciplined, playing for the long term, and not taking unnecessary risks. And, of course, disrupting the powers that be.

Friday, June 28, 2013

Obama has seemingly forgotten the constitutional law he once taught

June 27, 2013

The Criminal N.S.A.

THE twin revelations that telecom carriers have been secretly giving the National Security Agency information about Americans’ phone calls, and that the N.S.A. has been capturing e-mail and other private communications from Internet companies as part of a secret program called Prism, have not enraged most Americans. Lulled, perhaps, by the Obama administration’s claims that these “modest encroachments on privacy” were approved by Congress and by federal judges, public opinion quickly migrated from shock to “meh.”

It didn’t help that Congressional watchdogs — with a few exceptions, like Senator Rand Paul, Republican of Kentucky — have accepted the White House’s claims of legality. The leaders of the Senate Intelligence Committee, Dianne Feinstein, Democrat of California, and Saxby Chambliss, Republican of Georgia, have called the surveillance legal. So have liberal-leaning commentators like Hendrik Hertzberg and David Ignatius.

This view is wrong — and not only, or even mainly, because of the privacy issues raised by the American Civil Liberties Union and other critics. The two programs violate both the letter and the spirit of federal law. No statute explicitly authorizes mass surveillance. Through a series of legal contortions, the Obama administration has argued that Congress, since 9/11, intended to implicitly authorize mass surveillance. But this strategy mostly consists of wordplay, fear-mongering and a highly selective reading of the law. Americans deserve better from the White House — and from President Obama, who has seemingly forgotten the constitutional law he once taught.

The administration has defended each of the two secret programs. Let’s examine them in turn.

Edward J. Snowden, the former N.S.A. contract employee and whistle-blower, has provided evidence that the government has phone record metadata on all Verizon customers, and probably on every American, going back seven years. This metadata is extremely revealing; investigators mining it might be able to infer whether we have an illness or an addiction, what our religious affiliations and political activities are, and so on.

The law under which the government collected this data, Section 215 of the Patriot Act, allows the F.B.I. to obtain court orders demanding that a person or company produce “tangible things,” upon showing reasonable grounds that the things sought are “relevant” to an authorized foreign intelligence investigation. The F.B.I. does not need to demonstrate probable cause that a crime has been committed, or any connection to terrorism.

Even in the fearful time when the Patriot Act was enacted, in October 2001, lawmakers never contemplated that Section 215 would be used for phone metadata, or for mass surveillance of any sort. Representative F. James Sensenbrenner Jr., a Wisconsin Republican and one of the architects of the Patriot Act, and a man not known as a civil libertarian, has said that “Congress intended to allow the intelligence communities to access targeted information for specific investigations.” The N.S.A.’s demand for information about every American’s phone calls isn’t “targeted” at all — it’s a dragnet. 

“How can every call that every American makes or receives be relevant to a specific investigation?” Mr. Sensenbrenner has asked. The answer is simple: It’s not.

The government claims that under Section 215 it may seize all of our phone call information now because it might conceivably be relevant to an investigation at some later date, even if there is no particular reason to believe that any but a tiny fraction of the data collected might possibly be suspicious. That is a shockingly flimsy argument — any data might be “relevant” to an investigation eventually, if by “eventually” you mean “sometime before the end of time.” If all data is “relevant,” it makes a mockery of the already shaky concept of relevance.

Let’s turn to Prism: the streamlined, electronic seizure of communications from Internet companies. In combination with what we have already learned about the N.S.A.’s access to telecommunications and Internet infrastructure, Prism is further proof that the agency is collecting vast amounts of e-mails and other messages — including communications to, from and between Americans.

The government justifies Prism under the FISA Amendments Act of 2008. Section 1881a of the act gave the president broad authority to conduct warrantless electronic surveillance. If the attorney general and the director of national intelligence certify that the purpose of the monitoring is to collect foreign intelligence information about any non­American individual or entity not known to be in the United States, the Foreign Intelligence Surveillance Court can require companies to provide access to Americans’ international communications. The court does not approve the target or the facilities to be monitored, nor does it assess whether the government is doing enough to minimize the intrusion, correct for collection mistakes and protect privacy. Once the court issues a surveillance order, the government can issue top-secret directives to Internet companies like Google and Facebook to turn over calls, e-mails, video and voice chats, photos, voice­over IP calls (like Skype) and social networking information.

Like the Patriot Act, the FISA Amendments Act gives the government very broad surveillance authority. And yet the Prism program appears to outstrip that authority. In particular, the government “may not intentionally acquire any communication as to which the sender and all intended recipients are known at the time of the acquisition to be located in the United States.”

The government knows that it regularly obtains Americans’ protected communications. The Washington Post reported that Prism is designed to produce at least 51 percent confidence in a target’s “foreignness” — as John Oliver of “The Daily Show” put it, “a coin flip plus 1 percent.” By turning a blind eye to the fact that 49-plus percent of the communications might be purely among Americans, the N.S.A. has intentionally acquired information it is not allowed to have, even under the terrifyingly broad auspices of the FISA Amendments Act.

How could vacuuming up Americans’ communications conform with this legal limitation? Well, as James R. Clapper Jr., the director of national intelligence, told Andrea Mitchell of NBC, the N.S.A. uses the word “acquire” only when it pulls information out of its gigantic database of communications and not when it first intercepts and stores the information.

If there’s a law against torturing the English language, James Clapper is in real trouble.

The administration hides the extent of its “incidental” surveillance of Americans behind fuzzy language. When Congress reauthorized the law at the end of 2012, legislators said Americans had nothing to worry about because the surveillance could not “target” American citizens or permanent residents. Mr. Clapper offered the same assurances. Based on these statements, an ordinary citizen might think the N.S.A. cannot read Americans’ e-mails or online chats under the F.A.A. But that is a government ­fed misunderstanding.

A “target” under the act is a person or entity the government wants information on — not the people the government is trying to listen to. It’s actually O.K. under the act to grab Americans’ messages so long as they are communicating with the target, or anyone who is not in the United States.

Leave aside the Patriot Act and FISA Amendments Act for a moment, and turn to the Constitution.
The Fourth Amendment obliges the government to demonstrate probable cause before conducting invasive surveillance. There is simply no precedent under the Constitution for the government’s seizing such vast amounts of revealing data on innocent Americans’ communications.

The government has made a mockery of that protection by relying on select Supreme Court cases, decided before the era of the public Internet and cellphones, to argue that citizens have no expectation of privacy in either phone metadata or in e-mails or other private electronic messages that it stores with third parties.

This hairsplitting is inimical to privacy and contrary to what at least five justices ruled just last year in a case called United States v. Jones. One of the most conservative justices on the Court, Samuel A. Alito Jr., wrote that where even public information about individuals is monitored over the long term, at some point, government crosses a line and must comply with the protections of the Fourth Amendment. That principle is, if anything, even more true for Americans’ sensitive nonpublic information like phone metadata and social networking activity.

We may never know all the details of the mass surveillance programs, but we know this: The administration has justified them through abuse of language, intentional evasion of statutory protections, secret, unreviewable investigative procedures and constitutional arguments that make a mockery of the government’s professed concern with protecting Americans’ privacy. It’s time to call the N.S.A.’s mass surveillance programs what they are: criminal.

Jennifer Stisa Granick is the director of civil liberties at the Stanford Center for Internet and Society. Christopher Jon Sprigman is a professor at the University of Virginia School of Law.

Wednesday, June 26, 2013

The Mind Your Own Business Act

Rep. Alan Grayson (D-Fla.) joins “Viewpoint” host John Fugelsang to discuss an amendment he will soon introduce in the House of Representatives called the Mind Your Own Business Act.

Grayson hopes this amendment will end NSA spying on Americans. He says, “That kind of spying does not make us safer and it is beneath our dignity as Americans.”

Grayson adds, “Virtually everybody that I know immediately recognizes how silly and pointless it is to spy on every person’s conversation.”

Tuesday, June 25, 2013

Civil rights leaders dealt ‘a devastating blow’

By Morgan Whitaker

Civil rights groups suffered major setbacks on Tuesday after the heart of the landmark civil-rights law that protects minority voters was effectively gutted by the Supreme Court.

In a 5-4 decision, the Supreme Court struck down Section 4 of the Voting Rights Act , which required many Southern states to obtain pre-clearance before making any changes to voting laws.

Although the ruling does state that pre-clearance still stands, it functionally halts that part of the law until Congress can draw up a new set of guidelines to determine which areas are subject to federal oversight.

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“This is a devastating blow to Americans, particularly African-Americans, who are now at the mercy of state governments,” Rev. Al Sharpton, PoliticsNation host and civil rights activist said in a statement released through the National Action Network. “Given last year’s attempts by states to change voting rules, it is absurd to say that we do not need these protections.”

Sharpton also vowed to continue the fight, noting the efforts that brought about the civil rights achievements of the 1960′s were set in motion by activism. “It was a people’s movement from the bottom up,” he said on MSNBC Tuesday. “And that’s what’s going to have to happen now.”

“James Crow Jr. Esquire is doing Jim Crow work today,” he added.

Rev. Jesse Jackson, founder and president of the Rainbow PUSH Coalition, echoed that sentiment.

“The Supreme Court has stabbed the Voting Rights Act in the heart. The White House and Congress must speak out as they are direct beneficiaries of the act and must assume leadership,” he said in a statement released on his Facebook page. “Democracy is just 48 years old. It began in Selma 1965. This decision is designed to unravel 48 years of progress.”

Many legally-focused civil rights organizations also spoke out against the ruling, including the NAACP Legal Defense and Educational Fund, which defended the Voting Rights Act before the Supreme Court, and called today’s ruling “an act of extraordinary judicial overreach.”

“The Supreme Court ruling takes the most powerful tool our nation has to defend minority voting rights out of commission.” Sherrilyn Ifill, President of the NAACP LDF, said in a statement. “By second-guessing Congress’ judgment about which places should be covered by Section 5 of the Voting Rights Act, the Court has left millions of minority voters without the mechanism that has allowed them to stop voting discrimination before it occurs.

“This is like letting you keep your car, but taking away the keys,” she added. “To say that I am disappointed is an understatement. Congress must step in.”

The Lawyers’ Committee for Civil Rights, which represented one of the defendant-interveners in the case, criticized the decision as well.

“The Supreme Court has effectively gutted one of the nation’s most important and effective civil rights laws. Minority voters in places with a record of discrimination are now at greater risk of being disenfranchised than they have been in decades,” Jon Greenbaum, Chief Counsel for the Lawyers’ Committee for Civil Rights said in a statement. “Today’s decision is a blow to democracy. Jurisdictions will be able to enact policies which prevent minorities from voting, and the only recourse these citizens will have will be expensive and time-consuming litigation.”

“This decision disregards the documented history of ongoing voting discrimination in the covered states and paralyzes Section 5, which has blocked thousands of racially discriminatory voting practices and procedures before they could ever take effect,” Lawyers’ Committee for Civil Rights President and Executive Director Barbara Arnwine added in a statement. “Civil rights and civic organizations must now unite with the American people – fighting new discriminatory voting laws lawsuit by lawsuit and state by state—until Congress acts decisively to replace what has been one of the most effective civil rights laws ever passed.”

For Rev. Sharpton, Tuesday’s decision has helped define the focus of the commemorative march honoring the 50th Anniversary of the March on Washington, which he says ”will now be centered around the protection and restoring of voter protection.”

“This ruling has in effect revoked one of Dr. King’s greatest achievements, the teeth of the Voting Rights Acts,” he added.

Obama’s ‘Internal Threat’ program: ‘We’re on the road to East Germany’

Cenk Uygur talks to TYT panelists Ana Kasparian, “TYT University” host John Iadarola, and comedian Jimmy Dore about the government’s “Internal Threat” program, which aims to discourage leaks by equating whistleblowing with treason.

The program also encourages government employees to rat out co-workers who may be potential whistleblowers based on risk indicators, such as martial or financial distress.

”In East Germany, once they found the paperwork after the wall came down, it turned out that one out of every ten people…was a government collaborator,” Cenk says. “We’re on the road to East Germany.”

Tuesday, June 18, 2013

Bernie Sanders On NSA Leak Revelations: We're Heading For An 'Orwellian Future'

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This Will Not End Well

By Eugene Robinson

A general view of damaged shops in Qusair, Syria.  AP/SANA

WASHINGTON—In Syria, the Obama administration seems to be stumbling back to the future: An old-fashioned proxy war, complete with the usual shadowy CIA arms-running operation, the traditional plan to prop up ostensible “moderates” whose prospects are doubtful and, of course, the customary shaky grasp of what the fighting is really about.

This will not end well.

It is tragic that more than 90,000 people have been killed in the bloody Syrian conflict, with more than a million displaced. But I have heard no claim that President Obama’s decision to arm the rebels will halt or even slow the carnage. To the contrary, sending more weapons into the fray will likely result in greater death and destruction, at least in the short term.

So this is not promising as a humanitarian intervention. And if the aim is to punish dictator Bashar al-Assad for his apparent use of chemical weapons, surely there are measures—a missile strike on the regime’s military airfields, for example—that would make the point without also making an open-ended commitment.

Why decide now to announce stepped-up direct support for Gen. Salim Idriss and his rebel forces? It is surely not a coincidence that the Syrian military—with the help of Hezbollah, the Lebanese militia backed by Iran—has been pulverizing the rebels in recent weeks and now threatens to recapture Aleppo, the country’s commercial hub.

Hence, a complicated proxy war: The United States supports Idriss. Qatar and Saudi Arabia, which are U.S. allies, send money and arms to competing rebel factions that dream of turning Syria into an Islamic republic. Russia, Iran and Hezbollah are supporting Assad with weapons, money and—in the case of Hezbollah—well-trained troops. The rebel side is mostly Sunni; the government side largely Shiite.

As I said, this will not end well.

President Obama’s reluctance to get dragged into this morass has been commendable, but now his ambivalence and caution become liabilities. Iran’s most important ally in the Arab world is Syria. Russia’s only military base outside of the former Soviet Union is in Syria. Does Obama care as much as those nations’ leaders do about who wins the war? If not, what’s the point?

It could be argued that providing Idriss with light arms and ammunition is a way to equip moderate, secular forces for their inevitable fight against Islamists in a fractured post-Assad Syria. But this is moot if Assad crushes the rebellion and holds on. Accordingly, U.S. aid reportedly may include some heavier weapons for use against tanks and aircraft. The CIA will take the lead in transferring the arms and training the rebels to use them, according to The Washington Post.

Perhaps bolstering Idriss can at least buy time for negotiations to produce a political settlement, which is what Obama has said he prefers. For a long time, Russia balked at joining the call for an international peace conference. Now that momentum on the battlefield has shifted and the Assad regime is in a stronger position, Russia is more willing to summon everyone to the table—but the Obama administration is no longer in such a big hurry.

Not every slope is slippery, but this one looks like a bobsled run. It was August 2011 when Obama issued a statement declaring that “the time has come for President Assad to step aside.” Now that the president has put muscle behind those words, it will be difficult for the United States to accept any other outcome.

There will be pressure to impose a no-fly zone to neutralize Assad’s devastating air power. There will be pressure to contain the war so it does not spill beyond Syria’s borders and destabilize our allies in Turkey and Jordan, or our sort-of, kind-of allies in Iraq. There will be pressure to alleviate the immense suffering of the Syrian people. Perhaps all of this can be accomplished without putting American lives at risk. I doubt it.

Above all, there will be pressure to win a proxy war that Obama never wanted to fight. This is how quagmires begin, with one reluctant step after another toward the yawning abyss. (See: Vietnam.)

We do sometimes win proxy wars—in Afghanistan, for example, where the CIA helped the warlords defeat the mighty Soviet army. In the process, however, we created the chaotic power vacuum that allowed al-Qaeda to set up shop—and ultimately launch the 9/11 attacks.

I hope I’m wrong, but fear I’m right: This will not end well.

Eugene Robinson’s e-mail address is eugenerobinson(at)washpost.com

The Witcher 3: Wild Hunt is dark and full of terrors

The world of The Witcher 3: Wild Hunt is dark and full of terrors (preview)
The world of The Witcher 3: Wild Hunt is dark and full of terrors (preview)

Monday, June 17, 2013

Martin Bashir to Michael Steele: 'What Does the GOP Hope to Accomplish?'

By scarce

After playing a series of embarassing clips from Michele Bachmann, Phyllis Schlafly, Allen West, Sarah Palin, John Ratzenberger and others, the same bunch of assorted lunatics who show up at all these conservative conferences over and over again, this time at the Faith & Freedom Coalition conference now on in DC, Martin Bashir asked former RNC Chairman Michael Steele this rather pointed question...
MARTIN BASHIR: What does the GOP hope to accomplish by repeatedly appealing to the far right of the party while at the same time possibly alienating more mainstream republicans?
MICHAEL STEELE: [Deep breath and a sigh] Well, I think they need to....
...and Steele's voice trailed off as MSNBC's Karen Finney and Touré burst into howls of laughter.


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Thursday, June 13, 2013

Surveillance State Hypocrisy Champion Sean Hannity

By Brad Friedman on 6/12/2013, 8:22pm PT 

Several days ago, I posted a video showing the stark differences between the positions on massive surveillance programs by candidate Barack Obama in 2007 and President Barack Obama in 2013.

And now, since we're nothing if not "fair and balanced", here is a short video of Sean Hannity of Fox "News" repeatedly lauding massive NSA surveillance programs during the George W. Bush Administration...and then decrying the very same programs as "tyranny" and a blatant violation of the U.S. Constitution now that Obama is doing it.

With all due respect to Hannity - and I have none - his over the top hypocrisy then versus now trumps even Obama's, hands down. Not to mention the small detail that the programs, as carried out under Bush were, at the time, illegal, while under Obama they have been made "legal". (Or so we are told. There is so much secrecy around them, of course, it is virtually impossible for the public to know either way.) Enjoy!...

Big Banks Caught Rigging Currency Markets Again: Please, Can We Regulate Them Now?

By Elisabeth Parker

Image with an older man in a suit and tie laughing maniacally while clutching bills of indeterminate denominations.
Today’s Republicans seem to think rigging currency markets and robbing customers and tax payers blind is a perfectly acceptable way for banks to operate. Image from www.bellybillboard.com.

What do you do when you have more money than God? Cheat so you can make even more money! Bloomberg reports that foreign exchange traders at “some of the world’s biggest banks”  got caught rigging currency markets to generate higher profits. Even more disturbing, it turns out they’ve been doing it for an entire decade. Basically, WM/Reuters sets foreign exchange rates and currency values each morning based on trades and quotes from the previous day. But traders can — and apparently often do — place massive buy and sell orders late in the day to weight values in their favor. This practice — the global financier’s version of the proverbial butcher surreptitiously placing a thumb on the scale — is controversial, but not explicitly illegal:
Employees have been front-running client orders and rigging WM/Reuters rates by pushing through trades before and during the 60-second windows when the benchmarks are set, said the current and former traders, who requested anonymity because the practice is controversial. Dealers colluded with counterparts to boost chances of moving the rates, said two of the people, who worked in the industry for a total of more than 20 years. [...]
Furthermore, the foreign exchange market is considered to be “like the Wild West” even by the low standards of these anti-regulation, libertarian finance industry types:
The $4.7 trillion-a-day currency market, the biggest in the financial system, is one of the least regulated. The inherent conflict banks face between executing client orders and profiting from their own trades is exacerbated because most currency trading takes place away from exchanges.
Meanwhile, Peter Schroeder from The Hill reports that Senator Carl Levin (D-MI) issued a statement demanding that the Treasury Department revisit its recent decision to exempt foreign exchange from the stronger regulations mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act:
“The Treasury Department should reconsider its ill-advised exemption of foreign exchange derivatives from the full protections of the Dodd-Frank Act. Our financial regulators should protect American businesses and families from price rigging abuses by fully regulating these derivatives trades and by finalizing the long overdue Merkley-Levin provisions on proprietary trading and conflicts of interest.”
Considering how recently Barclays and other international banks got in hot water for fixing the London Interbank Offered Rate (LIBOR), you’d think folks in Washington would listen to the senator from Michigan. But … oh wait, I forgot … The House is run by a bunch of crazy Republicans who think unscrupulous traders from big banks should be able to do whatever the heck they want.

Despite the fact that the too-big-to-fail whales big banks have repeatedly proven they cannot be trusted, the GOP STILL doesn’t want us to regulate them. They have repeatedly tried to sabotage the Dodd-Frank act, so bankers and traders can lie, cheat, and rob people blind with impunity while destroying our economy, America’s middle class, and our faith in our financial system.

AI’s Justin Rosario reported earlier this week that Representative Jeb Hensarling (R-TX) vociferously objected when the Financial Stability Oversight Council identified “at least three” financial institutions as too-big-to-fail, and requiring higher levels of oversight and regulation to “keep them from dragging the entire financial sector under in a replay of the 2007-2008 collapse.” Apparently, Hensarling protested that taxpayers would be placed “greater risk of being forced to fund yet another Wall Street bailout,” and added, “Designating any company as ‘too big to fail’ is bad policy and even worse economics.”

For today’s Republicans, apparently, free markets are not supposed to be transparent, and companies should not be held accountable for their actions and lack of ethical behavior. Go figure.

If you’re curious about how the currency markets and foreign exchanges work, and have a half hour to kill, watch the British Broadcasting Corporation’s documentary, “Billion Dollar Day.” The 1986 film follows three traders in New York, London, and Hong Kong, as they wheel and deal and exchange over a billion dollars in various currencies over the course of 24 hours. These days, an average of $4.7 trillion is traded each day on the foreign exchanges. Here’s the video:



If you’re short on time, here’s the short version — an ancient, humorous commercial from a leading foreign exchange broker, Forex. Just substitute the Euro for the Great Britain Pound (GBP) and the Chinese Yuan for the Japanese Yen. Here’s the video:


Author:  
 
Elisabeth Parker is a writer, Web designer, mom, political junkie, and dilettante. Come visit her at ElisabethParker.Com, "like" her on facebook, "friend" her on facebook, follow her on Twitter, or check out her Pinterest boards. For more Addicting Info articles by Elisabeth, click here.

Wednesday, June 12, 2013

Why you should worry about the NSA

The just-revealed surveillance stretches the law to its breaking point and opens the door to future potential abuses

None of us want another terrorist attack in the United States. Equally, most of us have nothing to hide from the federal government, which already has so many ways of knowing about us. And we know that the just-revealed National Security Agency program does not actually listen to our calls; it uses the phone numbers, frequency, length and times of the calls for data-mining.

So, why is it that many Americans, including me, are so upset with the Obama administration gathering up telephone records?

My concerns are twofold. First, the law under which President George W. Bush and now President Obama have acted was not intended to give the government records of all telephone calls. If that had been the intent, the law would have said that. It didn’t. Rather, the law envisioned the administration coming to a special court on a case-by-case basis to explain why it needed to have specific records.
I am troubled by the precedent of stretching a law on domestic surveillance almost to the breaking point. On issues so fundamental to our civil liberties, elected leaders should not be so needlessly secretive.

The argument that this sweeping search must be kept secret from the terrorists is laughable. Terrorists already assume this sort of thing is being done. Only law-abiding American citizens were blissfully ignorant of what their government was doing.

Secondly, we should worry about this program because government agencies, particularly the Federal Bureau of Investigation, have a well-established track record of overreaching, exceeding their authority and abusing the law. The FBI has used provisions of the Patriot Act, intended to combat terrorism, for purposes that greatly exceed congressional intent.

Even if you trust Obama, should we have programs and interpretations of law that others could abuse now without his knowing it or later in another administration? Obama thought we needed to set up rules about drones because of what the next President might do. Why does he not see the threat from this telephone program?

The answer is that he inherited this vacuum cleaner approach to telephone records from Bush. When Obama was briefed on it, there was no forceful and persuasive advocate for changing it. His chief adviser on these things at the time was John Brennan, a life-long CIA officer. Obama must have been told that the government needed everyone’s phone logs in the NSA’s computers for several reasons.

The bureaucrats surely argued that it was easier to run the big data search and correlation program on one database. They said there was no law that could compel the telephone companies to store the records on their own servers.

If the telephone companies did so, government and company lawyers then certainly said, they would become legally “an agent” of the government and could be sued by customers for violating the terms of their service agreements.

Finally, Obama was certainly told, if the NSA and the FBI had to query telephone company servers, then the phone companies would know whom the government was watching, a violation of need-to-know secrecy traditions.

If there had been a vocal and well-informed civil liberties advocate at the table, Obama might have been told that all those objections were either specious or easily addressed. Law already requires Internet service providers to store emails for years so that the government can look at them. An amendment to existing law could have extended that provision to telephone logs and given the companies a “safe harbor” provision so they would not be open to suits. The telephone companies could have been paid to maintain the records.

If the government wanted a particular set of records, it could tell the Foreign Intelligence Surveillance Court why — and then be granted permission to access those records directly from specially maintained company servers. The telephone companies would not have to know what data were being accessed. There are no technical disadvantages to doing it that way, although it might be more expensive.

Would we, as a nation, be willing to pay a little more for a program designed this way, to avoid a situation in which the government keeps on its own computers a record of every time anyone picks up a telephone? That is a question that should have been openly asked and answered in Congress.

The vocal advocate of civil liberties was absent because neither Bush nor Obama had appointed one, despite the recommendation of the 9/11 Commission and a law passed by Congress. Only five years into his administration is our supposedly civil liberties-loving President getting around to activating a long-dormant Privacy and Civil Liberties Oversight Board. It will have a lot of work to do.
 
Clarke is a former counter-terrorism adviser to Presidents George H.W. Bush, Bill Clinton and George W. Bush.

All Those People Who Were Supposed to Get Insurance Probably Won't

One year later, the Supreme Court's health care decision on Medicaid expansion looks more like a Pyrrhic victory for the President.

By


When the Supreme Court decided the big health-care case last June, its ruling was seen as a huge win for President Obama. His administration had fended off a challenge that would have dismantled the entire reform effort; it lost on only a small issue to which few people had paid much heed. But a year later, it's increasingly clear that the minor loss is punching a major hole in the law's primary ambition - expanding health insurance coverage to most of the 49 million Americans who lack it.

Medicaid, the federal-state health insurance for the poor and disabled, was a cornerstone of the law's strategy. An expansion of the program that would open eligibility to every American earning an income near or below the poverty line was designed to enroll some 17 million people - about half of the law's coverage gains. But the Court ruled that Washington couldn't force the states to expand their programs, and politicians in most states, disdainful of Medicaid's rules and opposed to all things "Obamacare," have simply said no.

That means some 25 states, and some 7 million people, will lose out on access to coverage, leaving low-income residents with no opportunity to obtain affordable insurance in the new regime. "It's bad," says Caroline Pearson of the consultancy Avalere Health. As recently as February, she had predicted as few as five state holdouts by year's end; her current forecast is much more pessimistic.


Health and Human Services Secretary Kathleen Sebelius is putting on a brave face. "Given the climate around this law, given the number of states that were actually in litigation, and the election, the number of Republican governors who stepped up and said, 'We really want to do this,' I find to be very encouraging," she tells National Journal. Nevertheless, it's a long way from the administration's original plan.

Twenty-six states brought the case asserting their right not to expand Medicaid. Although they won that right, administration officials, health industry leaders, and journalists concluded after the Supreme Court decision that they'd eventually go along. The feds promise to pay 100 percent of expansion costs for three years, and then an amount that would never go below 90 percent; this was seen as too good a deal to turn down. Governors had grandstanded against the 2009 economic-stimulus money too, but nearly all had signed on. What state leader would want to turn down a huge infusion of federal cash?

Republican governors soon began querying HHS. Would the department let them use federal funding to expand Medicaid only partway? HHS held off answering them for months, and then, after the presidential election, told them the decision was all or nothing. The administration was sending a message: The law cannot be bargained over or repealed, so the choice is in or out.


As predicted, Republican governors started flipping. First Gov. Brian Sandoval of Nevada endorsed a full expansion. Then came the governors of New Mexico, Arizona, Ohio, Michigan. Even Rick Scott, the Florida governor elected on an anti-Obamacare platform, said expanding Medicaid was the right thing to do. Chris Christie followed suit in New Jersey, as did others. But endorsements haven't always led to expansions. The Florida Legislature did not share the governor's conversion, and Scott quickly backed down. At press time, both Ohio and Arizona's Legislatures continue to debate expansion.



Other governors who were considered obvious gets - such as Pennsylvania's Tom Corbett and Tennessee's Bill Haslam - declined expansion. Some of the poorest states with the most to gain have left piles of federal cash on the table. Medicaid was such a toxic issue in Mississippi that the Legislature adjourned without even reauthorizing the state's current program. While governors know they'll be judged on the health of the state economy, many legislators care more about ideological purity, and few Republican lawmakers are interested in the political risk associated with voting for anything branded with the president's name. Brian Haille, a former health aide to Haslam, says he doesn't expect any Medicaid enthusiasm in Tennessee until after the Republican primary filing deadline next year. "You've got lawmakers who are ducking and covering and do not want to vote on anything related to Obamacare before then," he said.

There may still be some stragglers. Kentucky Democratic Gov. Steve Beshear announced in May his state would move forward (he doesn't need legislative approval). Republican Gov. Terry Branstad in Iowa, an early skeptic about Medicaid, just reached an agreement with his Legislature to expand. But to do so, he needed to rebrand the program as something else. The plan, which still needs federal approval, will move some poor residents into private insurance markets and other into a state-run program that covers different benefits and pays doctors differently from the state's existing Medicaid program. "It isn't Medicaid expansion," insists Michael Bousselot, a policy adviser to Branstad, although he notes that it will use the federal funds. Utah Gov. Gary Herbert tells NJ he won't be making a Medicaid decision until at least September.

But given the logistical and administrative hurdles associated with expansion, even if politicians change their minds and convene special legislative sessions, few additional states will be able to expand by January. That means many low-income Americans will be left uninsured next year, despite the promise of health care reform. While middle-income people will have access to subsidized private insurance, the poorest adults in those states that don't expand will get nothing. The Supreme Court dealt Obamacare a major blow after all.