SPY

"The amount a state needs to expend on guard labor is a function of how much legitimacy the state holds in its population’s reckoning... Why spy? Because it’s cheaper than playing fair. Our networks have given the edge to the elites, and unless we seize the means of information, we are headed for a long age of IT-powered feudalism."

• Fed Likely to Remove ‘Patient’ Barrier for Rate Increase as Soon as June (Hilsenrath) - which year?
• Clinton says used personal email account for convenience (Reuters)
• Euro sinks to 12-year lows as yield gap grows (Reuters)
• Get Ready for Oil Deals: Shale Is Going on Sale (BBG)
• EIA raises 2015 US oil production forecast, cuts 2016 outlook (Reuters)
• How Falling Oil Prices Are Hindering Iraq’s Ability to Fight Islamic State (WSJ)
• China economic data weaker than expected, fuels policy easing bets (Reuters)
• ECB ‘Chasing Own Tail’ as Bond Rates Turn Negative, SocGen Says (BBG)
• Swiss makers quietly gear up with smartwatches of their own (Reuters)

Today, the founders of Wikipeia announced they are filing a lawsuit against the National Security Agency "to protect the rights of the 500 million people who use Wikipedia every month. We’re doing so because a fundamental pillar of democracy is at stake: the free exchange of knowledge and ideas.  Our lawsuit says that the N.S.A.’s mass surveillance of Internet traffic on American soil — often called “upstream” surveillance — violates the Fourth Amendment, which protects the right to privacy, as well as the First Amendment, which protects the freedoms of expression and association. We also argue that this agency activity exceeds the authority granted by the Foreign Intelligence Surveillance Act that Congress amended in 2008."

Our world is becoming increasingly interconnected, and that opens up some wonderful possibilities.  But there is also a downside.  What if we rapidly reach a point where one must be connected to the Internet in order to function in society?  Will there come a day when we can’t even do basic things such as buy, sell, get a job or open a bank account without it?  And what about the potential for government abuse?  Could an “Internet of Things” create a dystopian nightmare where everyone and everything will be constantly monitored and tracked by the government?  That is something to think about.

Guess ...

• Yellen faces Senate grilling on Fed rate policy, transparency (Reuters)
• Big Banks Face Scrutiny Over Pricing of Metals (WSJ)
• Greece makes more concessions to euro zone, Germany sets vote (Reuters)
• Time for another executive order: Longer Lives Hit Companies With Pension Plans Hard (WSJ)
• The Syria invasion "false flag" approaches: Islamic State in Syria abducts at least 90 from Christian villages (Reuters)
• Why Lenders Love the $2.5 Million Home Loan (BBG)
• Reuters journalist Maria Golovnina dies in Pakistan aged 34 (Reuters)
• Qatar’s Ties to Militants Strain Alliance (WSJ)

Because when in doubt how to best start a war, lie.

Financial repression "is going on on several fronts conducted by different people for their own agendas, though they all seem to be mutually supporting... There is a lot of collusion - the cancer which started in the US Financial System has spread globally... You now have two parties with the same head and reporting to the same masters. There is no longer any countervailing power."

NSA Spying Worse than Stasi or Nazi Germany, J. Edgar Hoover … Or Orwell’s 1984

Former Florida Gov. Jeb Bush, who is seriously considering a run for the White House in 2016, said Wednesday that the National Security Agency’s program that collects bulk telephone records was “hugely important,” throwing his support behind the practice as Congress debates whether to reauthorize or limit it. At an event on foreign policy hosted by the Chicago Council on Global Affairs, Mr. Bush, a Republican, said, “For the life of me, I don’t understand the debate” over the metadata program.

• Greece requests euro zone loan extension, offers big concessions (Reuters)
• Germany Rejects Loan Request Saying Greece Must Meet Conditions (BBG)
• Did the Fed Just Enter the Currency Wars (BBG)
• French consumer prices fall for first time since 2009 (Reuters)
• Oil falls sharply after U.S. crude inventories rise (Reuters)
• High-Speed Firm Virtu Revives IPO Plans (WSJ)
• Fed Tiptoes Into Rate-Hike Debate (Hilsenrath)
• Rajoy’s Nemesis Is Back: Anti-Graft Editor Targets Vote (BBG)

27 years ago, in his acceptance speech, George H.W. Bush famously told America that he wanted a "kinder, gentler nation." While it took nearly three decades, it seems that his wish has finally come true. Sort of. Last week, the Commissioner of the Internal Revenue Service appeared in front of the House Way and Means Oversight Subcommittee... and apologized to taxpayers, specifically those who have had their assets seized and bank accounts wrongfully frozen - "To anyone who is not treated fairly under the [tax] code, I apologize."

• Greece to submit loan request to euro zone, Germany resists (Reuters)
• Ukrainian forces start to quit besieged town (Reuters)
• Bank of Japan maintains policy, no surprises (FT)
• China Considering Mergers Among Its Big State Oil Companies (WSJ)
• Soros Shifts to Europe, Asia as Investors Cut U.S. Equities (BBG)
• Putin tells Kiev to let troops surrender as Ukraine ceasefire unravels (Reuters)
• Venezuela Squanders Its Oil Wealth (BBG)
• Swiss prosecutor raids HSBC office, opens criminal inquiry (Reuters)

None of us are perfect. All of us bend the rules occasionally. Indeed, there was a time when most Americans thought nothing of driving a few miles over the speed limit, pausing (rather than coming to a full stop) at a red light when making a right-hand turn if no one was around, or jaywalking across the street. My, how times have changed. Today, there’s little room for indiscretions, imperfections, or acts of independence. In such an environment, you’re either a paragon of virtue, or you’re a criminal. If you haven’t figured it out yet, we’re all criminals. This is the creepy, calculating yet diabolical genius of the American police state: the very technology we hailed as revolutionary and liberating has become our prison, jailer, probation officer, Big Brother and Father Knows Best all rolled into one.

Prosperity Requires Privacy