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Monday, May 8, 2006
Vol. 8 No. 91
In Today's Letter: Comment: PATRIOT Lies
Offshore: British Bank Privacy Dies
Wealth: Oil Soars as Bolivia and Venezuela Renegotiate Oil Terms
Privacy & Rights: Phone Records NOT for Sale
PATRIOT Lies

Dear A-Letter Reader:

My late father, J. Carl Bauman, was a Kodak movie buff who, from my long ago birth, chronicled my childhood on 16mm film. There is one memorable sequence, (I was about 3-years-old), when Dad had the bright idea to film little Bobby holding a garden hose in our back yard.

The film begins with me assuring Dad I won't squirt him with the hose, if only he will turn on the water, shaking my head forcefully: "No, no!" Of course, as soon as the water gushes, I turn the hose on cameraman Dad and the screen becomes liquid. The closing sequence shows me wailing loudly, my nude, smacked bum prominent center screen, as I am hauled off into the house, soaking wet -- as was Dad.

I cite this personal vignette because there is a parallel in the 2001 adoption by the U.S. Congress of the unconstitutional PATRIOT Act and its subsequent enforcement. In the wake of the 9-11 tragedy the Act's sponsors and the Bush administration insisted and repeated that this unprecedented suspension of civil liberties was absolutely necessary to protect Americans against terrorists and terrorism. The explicit promise was made that this law that waived numerous guaranteed constitutional rights and safeguards, would not be used to prosecute other crimes.

No sooner than the PATRIOT Act became law, with convenient provisions that allowed the government to act in secret while accounting to no one, then they began to use the law in all sorts of alleged criminal activities that had no relation to terrorism without any judicial oversight. Last week, Congress forced the FBI to admit that it issued thousands of subpoenas to banks, phone companies and Internet providers last year, aggressively using powers under the PATRIOT Act to monitor the activities of thousands of U.S. citizens.

The report was the first to detail the government's use of a controversial form of administrative subpoena that can be issued without court oversight -- an FBI agent files a paper in his own files that replaces a probable cause subpoena that used to require a judge or magistrate's approval for a search and seizure of evidence.

According to the new report, the FBI issued 9,254 national security letters in 2005, covering 3,501 U.S. citizens and legal foreign residents. The Justice Dept. report also outlined an increase in secret warrants under the Foreign Intelligence Surveillance Act (FISA). The secret court approved a record 2,072 orders for secret searches or surveillance in 2005 -- an 18% increase from the year before. And that number does not count illegal searches authorized by the President without any warrants.

The PATRIOT Act was supposed to be an "anti-terrorist" law. We have repeatedly pointed out how the Act is used for easy secret police action against any alleged "crime" the Feds choose. Two federal judges ruled in secret that the Act can be used in any criminal investigation, not just those involving alleged terrorism.

In Arizona, the Act was used to convict, possibly wrongfully, a U.S. citizen of Lebanese extraction, of buying stolen baby food! Eight years in prison based on evidence obtained with secret anti-terrorist investigations that the defense counsel was not allowed to see. The Act has been used against Las Vegas night club owners who allegedly engaged in bribery and wire fraud and against alleged money launderers in many cases.

Know your rights -- the ones that remain -- and protect them.

That's the way that it looks from here,
BOB BAUMAN, Editor

P.S. For more about the PATRIOT Act see, click below.
LINK:  Click here for more information .

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Offshore

British Bank Privacy Dead

London : A 20-year battle by UK Revenue and Customs to grab information about offshore bank accounts and investments has ended -- by ending virtually all British bank privacy. Earlier this year, after a special ruling, Revenue won the power to require financial institutions to hand over customers' credit card details to help them track down undeclared income from offshore savings accounts. This latest ruling forces financial institutions to hand over all customer data held on their computer systems as well. In other words, bank in England and you have no financial privacy at all. Just as with the U.S. IRS, UK Revenue claims, with no proof, huge amounts are being lost -- £1.5bn ($2.8bn) -- to alleged offshore tax evasion. The solution for Brits -- bank elsewhere. Join The Sovereign Society and we'll tell you how and where.
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Wealth/Investments

As Oil Heads North, Bolivia Seizes Oil Installations

The energy crisis story continues - this time in Bolivia and Venezuela. In a dramatic sign of how high energy prices have triggered a revival of nationalism from Moscow to Caracas, Bolivia's president became the latest sovereign nation to announce new terms for international oil companies. Last week, the Bolivian military seized foreign-owned oil and gas properties. Newly-elected president, Evo Morales, a close Chavez ally, also wants to alter terms of the mining industry where several Canadian silver companies hold minority stakes in Bolivia. Venezuela and Bolivia rank second and fourth among the Western Hemisphere's largest source of natural gas reserves. In the late 1990s, Latin American countries invited Western oil companies to invest in their domestic oil industries amid a bear market in energy prices. But with crude oil trading north of $70 a barrel in 2006, Venezuela is the first South American sovereign nation to rewrite the terms on oil contracts. Mr. Chavez has forced major oil companies to accept a minority stake in fields they previously owned and hand over more money to Venezuelan coffers through higher taxes and royalties. Political instability in these countries as well as in other rich resource countries from Iran to Russia-on top of a supply squeeze-assure the oil and gas bull market won't end anytime soon. 

ERIC ROSEMAN, Investment Director
on behalf of The Sovereign Society 

Privacy&Rights

Phone Conversations Are Sacred Now?

The House of Representatives unanimously voted for a bill that increases criminal penalties for anyone who sells or solicits phone records. The new bill imposes criminal penalties for U.S. persons who "sell, transfer, purchase or receive confidential phone records...without prior consent of the customer." Interesting that Congress wants to protect phone records, when the government can listen to phone conversations without a warrant if they feel like it. 
LINK: Please click here for more information .

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