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To: Mannie who wrote (51666)5/18/2002 4:11:29 PM
From: stockman_scott  Read Replies (1) | Respond to of 65232
 
U.S. Intercepting Messages Hinting at a New Attack

By JAMES RISEN and DAVID JOHNSTON
The New York Times

nytimes.com

WASHINGTON, May 18 — American intelligence agencies have intercepted a vague yet troubling series of communications among Al Qaeda operatives over the last few months indicating that the terrorist organization is trying to carry out an operation as big as or bigger than the Sept. 11 attacks, according to intelligence and law enforcement officials.

But just as last summer's threats left counterterrorism analysts guessing about Al Qaeda's intentions, and believing that the attack might be carried out overseas, the new interceptions are so general that they have left President Bush and his counterterrorism team in the dark about the time, place or method of what some officials refer to as a second-wave attack. As a result, the government is essentially limited to taking broad defensive measures.

"It's again not specific — not specific as to time, not specific as to place," one senior administration official said.

The officials compared the intercepted messages, which they described as cryptic and ambiguous, to the pattern of those picked up last spring and early summer, when Qaeda operatives were also overheard talking about a big operation. Those signals were among the evidence that intelligence agencies presented to President Bush in August about the possibility of an imminent attack against the United States.

The senior official said Friday that the amount of intelligence relating to another possible attack, in Europe, the Arabian Peninsula or the United States, had increased in the last month. Some of it comes from interviews with fighters captured in Afghanistan.

But despite the disruption of Al Qaeda's operations around the world since Sept. 11, and despite major spending increases and shifts of resources to counterterrorism operations, American officials say they have not been able to fully piece together the clues about Al Qaeda's plans.

"There's just a lot of chatter in the system again," the official said. "We are actively pursuing it and trying to see what's going on here."

The government's frustration underscores the problem in fighting an unconventional foe like Al Qaeda.

Interviews with law enforcement and intelligence officials suggest that in the eight months since Sept. 11 the government has made only limited progress in its ability to predict Al Qaeda's next move, and that many proposed improvements in counterterrorism operations have yet to be put into effect.

This is despite considerable advantages that the United States lacked a year ago. The war in Afghanistan has provided a wealth of new information about Al Qaeda's structure and organization, for example.

In addition, the United States is also interrogating captured Qaeda fighters about the organization's plans. Officials say that debriefings of detainees have in some instances provided general warnings of another major attack that dovetail with the threats picked up in the intercepted communication traffic.

Facing intense criticism in recent days over disclosures that a series of possible clues about Al Qaeda's plans fell through the cracks in the months leading up to the Sept. 11 attacks, officials say that some significant changes have been made in the way threat information is studied and circulated within the upper reaches of the Bush administration.

For the first time, the C.I.A. and F.B.I. now compare notes on all terrorist threat information that comes in each day, filtering the intelligence through what they call an analytical "matrix" to determine which threats are the most credible and deserve the most attention. Their daily threat report is distributed to senior policy makers, including the White House director of homeland security, Tom Ridge. It provides a structure for debates among senior officials about whether to issue public threat warnings.

President Bush also now receives daily briefings from both the F.B.I. and the C.I.A. George J. Tenet, the director of central intelligence, and Robert S. Mueller III, the F.B.I. director, are frequently present during those White House sessions. That way, each agency is able to hear the other's latest advice to the president. Before Sept. 11, he received a daily briefing only from the C.I.A.

Although officials say some potential attacks have been foiled, that has been largely credited to the arrest of terrorist operatives overseas by foreign governments rather than to intelligence gleaned from intercepted communications.

United States intelligence officials said that they began to intercept communications among Qaeda operatives discussing a second major attack in October, and that they have detected recurring talk among them about another attack ever since. Some of the intercepted communications have included frightening references to attacks that the Qaeda operatives say would cause vast numbers of American casualties.

The intercepted communications do not point to any detailed plans for an attack, and even the messages mentioning mass casualties do not refer specifically to the use of weapons of mass destruction like chemical, biological or nuclear devices.

Still, American officials say they believe the intercepts represent some of the most credible intelligence they have received since Sept. 11 about Al Qaeda's intentions. They have provided a troubling undercurrent for the Bush administration as it tries to sort through the hundreds of other terrorist threat warnings it has received over the past few months.

The pattern of intercepted communications that began last October has helped prompt at least five public threat alerts issued by the F.B.I. since last fall.

By contrast, federal law enforcement and intelligence officials say they have been skeptical of many of the far more specific threats they have received from individual informants over the past few months. One of the problems now facing American counterterrorism experts is that they say communications intercepts, while vaguely worded, are often highly credible threat warnings, while the very detailed and specific threats passed on by individual informants are often far less reliable.

Individual informants who approach American investigators in the United States or overseas often know what kind of story will get the biggest reaction. They also often come forward because of hidden motives, perhaps hoping for money or entrance into the United States. The C.I.A. routinely gives its informants polygraph tests in an effort to validate their stories.

But officials say that in some cases they have been forced to take tales told by informants more seriously than they otherwise might, at least in part because officials suspect from the intercepted communications that Al Qaeda is planning something big.

In recent months, officials have issued threat alerts regarding nuclear plants, financial institutions and even specific structures like the Seattle Space Needle and the Golden Gate Bridge, even as some counterterrorism experts privately regarded those threats as not based on solid intelligence.

Some officials say the government's new color-coded threat alert system is less useful than the system it replaced, because it is subject to political influences from appointees who are fearful of being criticized if they fail to pass on every possible threat, no matter how remote.

Yet even as the less credible threats have been widely publicized, the more worrisome and credible undercurrent of intercepted communications has not been made public.

In hindsight, analysts now view the pattern of intercepted communications they saw last May, June and July as a sign of the impending attacks. Those intercepts, coming after embassy bombings in Africa and the suicidal bombing of a Navy ship in an Arabian port, were sometimes alarming.

Their references to mass attacks against American interests prompted a series of public alerts against possible terrorist attacks last summer, including one concerning a possible strike over the Fourth of July holiday. Officials said that they never had any evidence that an attack would occur inside the United States, and instead focused most of their attention on possible strikes against American facilities in the Middle East, Europe or Asia.

After the summer holiday passed quietly without any attacks, American analysts were relieved, but still believed that an attack might be coming. However, they lacked any further details of where or when the strike might come, and some officials began to think that the immediate danger might have passed. Now that analysts are seeing a similar pattern of communications intercepts, they say they are determined to avoid a repeat of that mistake.



To: Mannie who wrote (51666)5/20/2002 9:22:06 AM
From: Jim Willie CB  Read Replies (2) | Respond to of 65232
 
ScotDuck, arrive loosely at bankruptcy figures
here is my topview on the current liquidation underway
the liquidation didnt even begin until late 2000
the stock market burst bubble in early 2000 set the stage
late in 2000 we saw the complete decimation of internets, joined by the telecoms
then in early 2001 the fiberoptics and more telecoms, joined by a large slice of technologies
later in 2001 we saw the continuation into the general sector with the likes of KMart, but not without a little climax in telecom with Global Crossing
then in autumn 2001 the colossus Enron came down

many believe Enron was the climax.... HARDLY !!!
Enron is the screaming loud signal, since they represent the "CANARY IN THE FINANCIAL COALMINE"
Enron typifies the entire accounting system of charade, deception, fraud, deceit, and dishonesty that is prevalent throughout the entire public reporting scheme

the problem is that we have a huge disparity between earnings reported to the IRS (kept low to minimize taxes) versus earnings reported to the SEC (kept high to maximize shareholder value)
the gulf between the two has never been greater and should be a long time in closing the gap as long as senior mgmt stock options are a significant portion of the compensation packages

we are seeing similar deceptions with Tyco, IBM, GE
in fact, I believe the burden of proof is now on the reporting companies to demonstrate that they are not lying
Anderson is a fallguy now, but it will likely spread

now today, yet another claim of fraud with Computer Associates
their CEO has that much ballyhooed multi-$M reward incentive if only CA would report umteen $M sales and umteen % growth
well, they did, he got his $M's
but now the SEC is all over them for fraudulent sales claims

no, Enron is the beginning
enter Spitzer and possible legal action against Merrill Lynch
his efforts to expose and fix the conflict of interest between brokerage and investment banking has only begun

what I am getting at, DuckTail, is that the entire system is progressing through a long liquidation period that I expect will last about 5-7 years
personal bankruptcies rose to their highest level last month
I dont have the link or the figures, only the impression
corporate bankruptcies also surged

I expect the liquidation to take a long time, with fits & starts
but what is happening in my view is the transformation from paper financial assets to resource assets
and to fully complete this transformation, a great deal of liquidation of excess debt must be undertaken and resolved
unfortunately, that means the entire economy must proceed thru a painful debt resolution
and most households are nowhere near ready for it
THE ECONOMY CANNOT RECOVER UNTIL DEBT RESOLUTION IS COMPLETE

personal debt is monstrous and crippling
it will inhibit further economic growth from consumer spending for sure
I dont expect the personal 20% BK rate to hit until real estate is clobbered
which I believe will happen before 2005
then the equity lines of credit will totally shut down, refis will be out of the question
but for RE to be clobbered, both interest rates and jobless rates must rise
I believe they will as the liquidation period progresses further
but for a few more quarters perhaps, real estate will hang on
RE is the primary focus of Greenschism now, far more imporant to the economy than the stock market

there ought to be some kind of Liquidation Progress Index to measure how far along the process is
I expect FannyMae, SallyMae, FreddyMac all to face severe trials and at least one BKcy among them

what few seem to realize is that our entire economy is debt driven, debt overloaded, and we fix debt problems with more debt
that is like giving a shot of Jack Daniels to a man in a alcoholism detox clinic
the problem cannot be treated by giving more of what caused the illness

the Asian Meltdown in 1997 circled the globe and resulted in the Russian default and LTCM default in 1998
but few seem to admit that the same Meltdown is linked to the Naz Bubble bursting, and the widespread USA debt collapse, followed by Argentina collapse and more to come
I believe it is fully connected, but delayed due to the imminent Y2K phenomenon that was a mere 16 months away when Russia/LTCM hit

this is the Post-Boom Liquidation Period
it will not end until it has fullen run its course
I see no indication that if has lessened
if anything, it has accelerated
as the economy has slowed markedly, so has cash flow revenue to service the debt commitments
Moody's is having a field day (year) with downgrades

every 6-9 months, expect a high-profile bankruptcy or bigtime scandal
I think JPMorganChase is next up
maybe Ford Motor, perhaps Xerox

the rally we are seeing now is based largely on additional debt spending
the critical factor I see overlooked now is that the US-wide debt is accelerating, now near $32 trillion counting federal, state, municipal, corporate, personal
but the economy is not keeping pace
the debt machine is running over the cliff

and our federal govt is lying thru its teeth about the debt
it was $500 billion in 2001 if you allow the Social Security Fund to be set aside, as is required by law

a totally dismissed extremely large factor is the ongoing endless war on terrorism now
this war is adding strain to the financial system
federal deficits are growing rapidly
and attention is drawn AWAY from maintaining the system
the system needs bigtime controls
e.g. managing the USdollar and GOLD suppression
low rates and high debts will kill the dollar and allow cracks to develop further inside the economy

no, Scott and you too Clappy, the debt resolution and liquidation has only begun
just as the 1990 expansion took years, the 2000 contraction and liquidation will take years also
when home property values come down 15%, more strain will appear
when they come down 25%, then a deep recession will be underway

the most naive claims I hear out there involve perceived immunity of real estate to the cycle of expansion and contraction
wait until interest rates rise
wait until jobless rates rise again
layoffs will be resuming, if not already
we are still running a moving average of 400,000 claims/week
that is never a sign of economic recovery
when housing and automobiles have had their recession, we can talk about economic recovery

and bankruptcies will continue until those two have occurred
with a climax when the dollar finds its true uninhibited value as a debt instrument
whether personal BK rate tops out at 5% or 10% or 20%
who knows?
but it will be like nothing we have ever seen before

then in 2008-2011, we will begin an economic recovery
/ jim