Lou Dobbs: Today's Issues

NSA Chief Alexander: Surveillance Foiled Terrorist Plots

June 18, 2013

Defending his agency against allegations that NSA surveillance programs are intruding on privacy, Gen. Keith Alexander on Tuesday claimed the very same programs have saved countless lives.

Appearing before the House intelligence committee, Alexander said "I would much rather be here today debating this point than trying to explain how we failed to prevent another 9/11."

In his second public appearance before Congress since the programs were exposed, Alexander told the committee that, "In recent years these programs, together with other intelligence, have protected the U.S. and our allies from terrorist threats across the globe to include helping prevent ... potential terrorist events over 50 times since 9/11," he said.

Officials from both the NSA and FBI shed light on the scope of the secretive efforts, and offered examples of threats that were disrupted, which included a plot to bomb the New York Stock Exchange.

FBI Deputy Director Sean Joyce said officials became aware of the plot while monitoring an extremist in Yemen, who was in contact with an individual in the United States. Joyce said that through the surveillance they were able to detect "nascent plotting" to bomb the stock exchange and ultimately prevent the attack.

Joyce also confirmed that the program helped detect information about the 2009 plot to bomb the New York subway system.

The session which involved two of the nation's most secretive institutions came even as NSA leader Edward Snowden threated to release more government secrets.

Gen. Alexander said after the hearing that most of the documents accessed by Snowden were on a web forum available to many NSA employees. Others were on a site that required a special access. Alexander said investigators are still investigating how Snowden access the site.

Posted by Lou Dobbs Staff at 7:00 PM

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Obama Walks Away Empty-Handed From G8 Summit

June 18, 2013

The two-day G8 summit in Northern Ireland bared little fruit for President Obama, who had hoped to isolate Syria's President Bashar al-Assad.

However Russian President Vladimir Putin stuck to his guns as a supporter of the Assad regime.

Putin not only refused to give into pressure to suggest in the G8's final communiqué that the Syrian dictator should step down in the- but he also ridiculed the West for supplying arms to Syrian rebels, some of whom are affiliated with al Qaeda.

"British people have lately witnessed a tragedy, and we lived through it together, when right in the streets of London a British army serviceman was brutally murdered outside his barracks," Putin said.

"Is it these people that the Europeans want to supply arms? What happens next with those weapons? Who will control in which hands they end up? They could possibly (end up) in Europe."

As for his support of Assad, Putin offered no reason to believe that he would curtail arms shipments in an effort to end the more than two-year civil war that's claimed nearly 93,000 lives.

"We are supplying weapons under legal contracts to the legal government. That is the government of President Assad. And if we are going to sign such contracts, we are going to deliver," the Russian president said.

Both Obama and Putin agreed that the bloody conflict should be brought to an end through peace negotiations, but are still at odds over the role Assad would play in a new or transitional government.

"We remain committed to achieving a political solution to the crisis based on a vision for a united, inclusive and democratic Syria," the final communiqué read.

Posted by Lou Dobbs Staff at 6:00 PM

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Stocks Undaunted Ahead Of Fed's Policy Decision

June 18, 2013

It was another banner day on Wall Street, with stocks roaring higher for a second straight session - already recouping all of last week's declines.

The Dow Jones Industrial turned in its 6th straight triple digit move, today jumping 138-points. The Nasdaq Composite gained 30-points. The S&P 500 finished the session 13-points higher.

The market today seemingly unfazed by what might come out of the Federal Reserve tomorrow when it releases its decision on monetary policy and the direction of interest rates.
Investors were generally pleased with today's reports on the economy, which indicated inflation remained in check and the housing market continues to expand.

The Commerce Department reported U.S. housing starts increased 6.8% in May to an annualized rate of 914,000 units. That just missed estimates of 950,000, but still points to health growth in the housing market with new home construction up 28.6% compared to a year ago.

Housing permits decreased 3.1% for the month to an annualized rate of 974,000 units. The silver lining in the forward-looking indicator is that the slightly steeper than expected decline was primarily due a huge drop in permits issued for multi-housing units. Permits for single-family housing jumped to a five-year high.

The Labor Department reported that retail inflation in May remained subdued. Consumer prices rose just 0.1%; half the increase the street had been expected. Core prices, which strip out food and energy, however rose more than expected, up 0.2% in May. However, core inflation was up only 1.7% from a year ago, well below the Fed's target of 2.0%.

All but two of the 30 Dow components ended the day in positive territory. General Electric and UnitedHealth Group led the charge, both stocks up more than 2% on the day.

Posted by Lou Dobbs Staff at 5:00 PM

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Obama/Putin Meeting On Syria: TENSE

June 17, 2013

The much-anticipated meeting between U.S. President Obama and Russian President Putin concluded with little accomplished or agreed to regarding the more than two-year war in Syria.

At the conclusion of the two-hour meeting, the two leaders admitted that they have very different perspectives on the civil war that has claimed nearly 93,000 lives. However, the men who at times appeared tense in one another's company, offered some hope of a peaceful resolution to the conflict.

"We do have differing perspectives on the problem but we share an interest in reducing the violence, securing chemical weapons and ensuring that they're neither used nor are they subject to proliferation," Obama said. "We want to try to resolve the issue through political means if possible."

Putin said "of course our opinions do not coincide, but all of us have the intention to stop the violence in Syria and to stop the growth of victims and to solve the situation peacefully, including by bringing the parties to the negotiations table in Geneva. We agreed to push the parties to the negotiations table."

The outcome of today's meeting was not a surprise to most who realize that the Syrian civil war is on the verge of morphing into a proxy war between the United States and Russia, as well as the Iranian backed Hezbollah terrorists currently fighting alongside Syrian President Assad's forces.

Russia is backing Syrian President Bashar Assad with arms and heavy weaponry used to hammer rebels, who unlit recently had held their own against Assad's troops.

The Obama administration last week announced that is will assist arming Syria rebels fighting Assad's forces. The administration however has not specified what arms it will send to the rebels, or if it will establish a no-fly zone along the Jordanian/Syrian border.

In an interview with German daily Frankfurter Allgemeine Runschau released on Monday, President Assad warned that Europe will pay the price if it ships arms to rebels.

"If the Europeans ship weapons, Europe's backyard becomes a terrorists' place, and Europe will pay a price for it," Assad said. "Terrorists will return to Europe with fighting experience and extremist ideologies."

Posted by Lou Dobbs Staff at 5:00 PM

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NSA Leaker Makes Case Online

June 17, 2013

Since releasing information about the NSA's classified "Prism" program, Edward Snowden has been hiding out somewhere in Hong Kong.

Whereabouts still unknown, Snowden used a Guardian.com orchestrated online chat to speak out against allegations that he's working with China.

"This is a predictable smear that I anticipated before going public, as the US media has a knee-jerk 'RED CHINA!' reaction to anything involving HK or the PRC, and is intended to distract from the issue of US government misconduct," Snowden wrote. "Ask yourself: if I were a Chinese spy, why wouldn't I have flown directly into Beijing? I could be living in a palace petting a phoenix by now."

Snowden explained that it is Hong Kong's "legal and legal framework" may allow him to work without being "immediately detained."

"All I can say right now is the US Government is not going to be able to cover this up by jailing or murdering me. Truth is coming, and it cannot be stopped," Snowden said.

Aside from Snowden's self-proclaimed frustration with intrusive government surveillance programs, the 29-year old said that his frustration with Obama's failed campaign pledges also contributed to his motivations in releasing information about the NSA surveillance program.

"Unfortunately, shortly after assuming power, he closed the door on investigating systemic violations of law, deepened and expanded several abusive programs, and refused to spend the political capital to end the kind of human rights violations like we see in Guantanamo, where men still sit without charge," he said

Understanding the scale and scope of the legal issues facing his son, Lon Snowden attempted to speak directly to Edward.

"I hope, I pray and I ask that you will not release any secrets that could constitute treason, " Lon Snowden said during an interview with Fox News' Eric Bolling. "I sense that you're under much stress [from] what I've read recently, and [ask] that you not succumb to that stress ... and make a bad decision."

Posted by Lou Dobbs Staff at 4:30 PM

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Stocks Climb Higher: Dow Logs 5th Straight Triple Digit Move

June 17, 2013

Stocks kick off the week with solid gains despite differing opinions as to when or if the Federal Reserve will begin scaling back its monetary stimulus.

The Dow Jones Industrial Average jumped 110-points on the day. The Nasdaq Composite climbed 29-points higher. The S&P 500 finished the session up 12-points.

Investors began the day feeling more confident about the future and scale of the Federal Reserve's asset purchase program. Last week concerns that the Fed might announce this week a scaling back of its asset purchases contributed to volatility in the global financial markets.

The market today also received a boost from a pair of better than expected economic reports. Confidence among homebuilders this month soared to the highest level since April 2006. The NAHB/Wells Fargo Housing Market index for June jumped to 52 from 44 in May, easily topping estimates.

Manufacturing in the New York area also improved far more than expected this month. The New York Fed's index of regional manufacturing in June climbed to 7.8, a big improvement to the -1.4 reading in May.

By afternoon trading, the three major stock indexes were up more than 1%, but retreated in reaction to a Financial Times report that the Federal Reserve this week will signal its close to scaling back the size of its asset purchases.

However, once the market got over its initial reaction to the headline, the indexes tracked higher to end trading up about .0.75% on average.

Technology stocks proved to be among the best market performers. Cisco Systems led advancers on the Dow, up more than 2.5% on the day. Both Hewlett-Packard and Microsoft each gained more than 1%.

Fellow Dow component Boeing also contributed to the triple digit rally on the blue chip index. Boeing's stock gained 1.2% after the CEO James McNerney said he is "highly confident" in the overhaul of the 787 Dreamliner's lithium battery system.

Shares of Netflix jumped more than 7% after the company signed a multi-year content deal with Dreamworks Animation. The deal, which begins in 2014, gives Netflix access to over 300 hours of programing.

News out of Micron Technology triggered a rally among chip companies. Micron Technology, which is slated to release earnings on Wednesday, said that it expects top-line numbers to exceed estimates, while earnings are likely to miss targets due to one-time charges. Micron Technology shares finished trading up 3.76%.

Facebook's stock rose more than 1.5% after the social-media site sent out invitations for a "new product" event scheduled for Thursday.

Posted by Lou Dobbs Staff at 4:00 PM

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Snowden: Playing Both SIdes?

June 14, 2013

Edward Snowden's become a household name in the United States and in some part's of China, where's he's been characterized as a "handsome" hero to the Chinese people.

Snowden claims to have fled to Hong Kong to in hopes that its rich history of protecting "free speech" will protect him from the long arm of U.S. law.

However some say Snowden's choice of Hong Kong, a loosely Chinese controlled territory, as his place of refuge draws suspicions as to his true motives.

Gordon Chang, author of "The Coming Collapse of China" told Fox News that there is a good chance Snowden is "playing both sides."

"The first clue is that he goes to Hong Kong and they have an extradition agreement with the U.S. and a tradition of close cooperation of law enforcement," Chang told Fox. "That means, the only thing that stands between him and a lifetime in a super-max prison is Beijing."

Then there's the time of the NSA leak, which derailed President Obama's meeting with China's President Xi Jinping where Obama was expected to get tough with China about its cyber espionage.

"He changed the global narrative of China hacking into the U.S. to the American government going after one of its own," Chang said.

Posted by Lou Dobbs Staff at 7:00 PM

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U.S. Poised To Support Syrian Rebels, But To What Extent

June 14, 2013

Once again the Obama administration is being coy with the American public. President Obama appears poised to begin extending additional assistance to Syrian rebels engaged in a more than two-year war against forces loyal to President Assad. The United Nations this week estimated that the war has claimed the lives of nearly 93,000 people.

"The president has made the decision to authorize additional assistance," National Security Council spokeswoman Bernadette Meehan told FoxNews.com on Friday. "The president has been very clear that all options are on the table, with the exception of U.S. troops on the ground. That is not a possibility."

The military aid expected to be heading to rebels in the near future will likely comprise of light arms and ammunition.

Sen. John McCain, R-Ariz., on Thursday said the rebels desperately need more powerful armaments.

"These people of the Free Syrian Army need weapons and heavy weapons to counter tanks and aircraft, they need a no-fly zone," McCain said. "Just providing arms is not enough"
However some critics say light weapons routed to the rebels have already fallen into the wrong hands.

"Already some of those weapons... have been shown in radical militants' hands," Elizabeth O'Bagy, a senior research analyst at the Institute for the Study of War, told the Financial Post earlier this year.

For more on the issues of U.S. involvement in the Syrian civil war go to FoxNews.com

Posted by Lou Dobbs Staff at 6:00 PM

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Stocks Slide To End The Week In Negative Territory

June 14, 2013

A turbulent week ends with a selloff in equities and a spike in crude oil prices.
The Dow Jones Industrial Average fell 106-points on the day. The Nasdaq Composite gave up 22-points. The S&P 500 ended trading down 10-points.

Those losses pushed the major stock indexes further into negative territory, ending 1% lower for the week.

Today's selling was sparked by a surprise drop in consumer confidence. The University of Michigan reporting that its gauge of consumer confidence in May declined to 82.7. That decline came as investors grew less optimistic about employment and housing.

Wholesale inflation last month jumped far more than expected. Higher prices for food, gasoline and light trucks helping to drive producer prices 0.5% higher in May, well above estimates of a 0.1% increase. However, stripping out food and energy, core prices rose a far more modest 0.1%, which was inline with Wall Street Estimates.

News on factory output also disappointed. Industrial production last month came in flat, missing estimates calling for a 0.1% rise. Looking on the bright side, stagnant output is still a significant improvement to the 0.4% decline reported in April.

Also weighing on the mood of the market on Friday, the International Monetary Fund cut its expectation for U.S. economic growth in 2014 to 2.7% from 3%. It also said the U.S. economy will only grow at an annual rate of 1.9% this year due to "excessively rapid" cuts in federal spending.

Financial stocks proved to be a big drag on the stock market today. American Express was the biggest laggard on the blue chip index, slipping 2.98%. Citigroup, Morgan Stanley and Wells Fargo all fell about 2% on the day.

Inflation concerns helped to drive gold prices modestly higher. The August gold contract rose $9.80, closing the session at $1,387.60 an ounce.

Rising tensions in the Middle East and concerns about U.S. involvement in the civil war in Syria fueling a more than 1% rally in the crude oil market. The July crude oil contract finished up $1.16, settling at $97.85 a barrel.

Posted by Lou Dobbs Staff at 5:00 PM

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FBI Chief Defends Gov't Surveillance Programs

June 13, 2013

In what will likely be his last hearing before the House Judiciary Committee, Federal Bureau of Investigations Director Robert Mueller defended intelligence surveillance programs and discussed the ramifications of leaked information regarding the NSA's operation "PRISM."

In defending the surveillance, FBI Director Mueller said the U.S. might have been able to prevent the Sept. 11, 2001 terror attacks if the phone data-gathering program had been in place at that time.

Mueller asserted that had the surveillance program been in place prior to the attack, telephone calls from San Diego to an al-Qaeda safe house in Yemen would have been detected.

With regard to the information leaked by Edward Snowden, Mueller said the leaked information about the NSA program has done significant harm to our nation's security.

"One of the great vulnerabilities terrorists understand is their communications," Mueller told lawmakers. "If we lose our ability get their communications, we are going to be exceptionally vulnerable.'

"These disclosures have caused significant harm to our nation, and our safety. We are taking all necessary steps to hold the person responsible for these disclosures," said Mr. Mueller.

Mr. Mueller said that Congress could change the law if it wants. "If the line is to be drawn differently, so be it,'' said Mr. Mueller.

Posted by Lou Dobbs Staff at 7:00 PM

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