New Terror Report Warns of Insider Threat to Utilities

By BRIAN ROSS (@brianross)

Sabotage by an insider at a major utility facility, including a chemical or oil refinery, could provide al Qaeda with its best opportunity for the kind of massive Sept. 11 anniversary attack Osama bin Laden was planning, according to U.S. officials.

A new intelligence report from the Department of Homeland Security issued Tuesday, titled Insider Threat to Utilities, warns "violent extremists have, in fact, obtained insider positions," and that "outsiders have attempted to solicit utility-sector employees" for damaging physical and cyber attacks.

"Based on the reliable reporting of previous incidents, we have high confidence in our judgment that insiders and their actions pose a significant threat to the infrastructure and information systems of U.S. facilities," the bulletin reads in part. "Past events and reporting also provide high confidence in our judgment that insider information on sites, infrastructure, networks, and personnel is valuable to our adversaries and may increase the impact of any attack on the utilities infrastructure."

In the materials recovered after the Navy SEAL operation that killed Osama bin Laden in May, officials found evidence bin Laden sought to repeat the carnage of the Sept. 11, 2001, terror attacks on or around its ten year anniversary.

"The only way you can actually kill the large scale number of Americans that [bin Laden] literally was calculating was through the use of this critical infrastructure," Chad Sweet, former DHS chief of staff and co-founder of the Chertoff Group, told ABC News.

After gaining access to such sites, causing mayhem could be relatively easy, according to former White House counter-terrorism advisor and ABC News consultant Richard Clarke.

"There are a lot of very sensitive facilities where someone can get a job on the inside, get access to a control room, flip a switch, which causes an electric power grid to short circuit, causes a pipeline to explode," Clarke said.

The Department of Homeland Security said in a statement there was no specific threat.

"DHS routinely shares information with its state and local partners on a wide-range of potential threats, and as part of this responsibility, DHS issued an intelligence note to its federal, state, local, tribal and private sector partners on July 19 regarding potential threats to private sector utilities. While DHS has no specific, credible intelligence of an imminent threat posed to the private sector utilities, several recent incidents highlight the on-going threat to infrastructure in the utility sectors from insiders and outsiders seeking facility-specific information that might be exploited in an attack," DHS press secretary Matt Chandler said. "We will continue to work closely with our state and local partners, including our partners in the utility sector, to take steps to best protect from potential threats – including protecting our nation's infrastructure. This includes sharing information as well as best practices."

'I am Taking This Plant Hostage

U.S. officials were stunned last year in Yemen with the arrest of an alleged American recruit to al Qaeda, Sharif Mobley, of New Jersey, who had been employed as five different U.S. nuclear power plants in and around Pennsylvania after successfully passing federal background checks.

And the prince makes his move…

By Syed Jaymal Zahiid

Tengku Razaleigh's Amanah has sent the speculation mills into overdrive. Has the prince given up on Umno? Or will he now lead the third force?

KUALA LUMPUR: The new organisation set up by Tengku Razaleigh Hamzah may signal the Kelantan prince’s disenchantment with Umno, suggested a prominent blogger.

He also believes that the veteran politician will not defend his Gua Musang parliamentary seat under the Barisan Nasional ticket.

In his blog MSOMalaysia, Mohd Sayuti Omar said Razaleigh’s Amanah (Angkatan Amanah Merdeka) reflected his frustration towards Umno and that the latter no longer believes he can reform the party from within.

“The question is what is the purpose of Amanah?

“Will it move to support Umno or go against Umno? Will Amanah that is said to be based on the legacy of Tunku Abdul Rahman forge cooperation with the opposition in the coming election?

“The logic is Razaleigh will not be enthusiastic about leading the NGO if it is not to repair Umno… (but) he has given thought about his future and has lost confidence in Umno. I can see from this that he will not contest under the BN ticket anymore,” he added.

Amanah to lead third force?

Amanah, to be launched this Friday, aims to rekindle the spirit of unity, justice and good governance as espoused by the country’s founding fathers which Razaleigh said is the duty of Umno to preserve.

The Gua Musang MP, however, has been critical towards the ruling party and made statements that Umno has deviated from its original struggle and is now corrupt.

The setting up of Amanah is seen as a platform to pursue this objective while some observers claim that the NGO may potentially be the leading platform for a third force given Razaleigh’s calibre as a respected politician.

A news report quoted Amanah central committee and PAS member Wan Saiful Wan Jan as saying that the NGO will have “prominent leaders” on its committee.

It is understood that the 15-20 member committee will also include leaders from BN as well as Pakatan Rakyat.

“You might be surprised when you see who is in the committee,” Wan Saiful said.

‘Those who lost faith in Najib’

Commenting on the composition of the committee, Sayuti said while there are no details, he is however confident that it will include Umno politicians who have lost faith in the party’s struggle.

“It will also comprise ex-top civil servants who no longer believe in Umno’s struggle and the leadership of Prime Minister Najib Tun Razak.

“Who are they (members of the committee)? There are a few Umno veterans with Razaleigh and his loyal supporters. It also includes the children of Umno leaders who no longer believe in Umno, which has gone astray from its original struggle,” added the blogger.

Razaleigh was touted as the best candidate to lead the country next to his former Umno comrade, current Opposition Leader Anwar Ibrahim, and was said to be in talks with Pakatan over such a prospect, but he denied the speculation.

Amanah will be launched at the Tunku Abdul Rahman Putra Memorial here where Razaleigh will be giving his keynote address.

In 1987, Razaleigh, a former finance minister, challenged the then Umno president Dr Mahathir Mohamad for the top post.

While Mahathir won the elections with a razor-thin majority, a dissatisfied Razaleigh took the matter to court and Umno was declared illegal.

Mahathir then re-established Umno as Umno Baru, and Razaleigh, who is affectionately known as Ku Li, formed Semangat 46.

Seven years later, he disbanded Semangat 46 and rejoined Umno.

In 2004, he announced his interest for the Umno top post yet again but failed to garner enough nominations to contest the presidency.

'Israel plans to strike Iran in September'

Ex-CIA official Robert Baer believes an Israeli strike against Tehran is rather imminent; predicts US will have to get involved

Israel may mount a strike against Iran in the fall, longtime CIA officer Robert Baer, who spent 21 years in the Middle East, told a Los Angeles radio station Saturday.

Baer ventured such a move will drag the United States into another major war and endangering US military and civilian personnel throughout the Middle East and beyond.

Baer spoke on the provocative KPFK Los Angeles show Background Briefing, hosted by Ian Masters.

Baer didn't name sources for his prediction of an Israeli attack, but the few he did cite are all Israeli security figures who have publically warned that Israeli Prime Minister Benjamin Netanyahu was adamant to strike Iran, such as former Mossad Chief Meir Dagan.

Baer said that "There is almost near certainty that Netanyahu is planning an attack (on Iran)… and it will probably be in September before the vote on a Palestinian state. And he's also hoping to draw the United States into the conflict," he explained.

The ax-CIA official went on to guess that the Israeli air force would attack "Natanz and other nuclear facilities to degrade their capabilities. The Iranians will strike back where they can: Basra, Baghdad," effectively forcing the US to "jump into the fight" with attacks on Iranian targets.

"Our special forces are already looking at Iranian targets in Iraq and across the border (in Iran) which we would strike. What we're facing here is an escalation, rather than a planned out-and-out war...it's a nightmare scenario. We don't have enough troops in the Middle East to fight a war like that. I think we are looking into the abyss," he said.

Iran launches international oil bourse

Iran's international oil bourse has officially been inaugurated on the Persian Gulf island of Kish for the convenience of international customers.

The Iranian oil bourse opened on Wednesday during a ceremony attended by Iran's First Vice President Mohammad Reza Rahimi, Economy Minister Shamseddin Husseini, and Caretaker of the Oil Ministry Mohammad Aliabadi, IRIB reported.

National Iranian Oil Company (NIOC) is expected to offer 600,000 barrels of heavy crude oil for sale on the first day launch of the bourse.

Ali Akbar Hashemian, the managing director of Iran Mercantile Exchange, says the base price of the heavy crude would be $112.60 per barrel.

Hashemian said the NIOC plans to offer 50,000 barrels of Iran's crude on the bourse on a regular daily basis, once all the necessary requirements are satisfied.

Iran, OPEC's second-largest oil producer, has the world's second largest natural gas reserves after Russia.

Gold above $1,600 as extends record winning streak

By Frank Tang

NEW YORK (Reuters) - Gold marched to a record above $1,600 on Monday, stretching its rally to an unprecedented eleventh day on fears that U.S. lawmakers could fail to raise the debt ceiling to avert a default.

Gold rallied even as the U.S. dollar strengthened, helping the precious metal hit record highs versus the euro and sterling. The precious metal has been on a solid footing since Europe started struggling to put together a second bailout for Greece and contain the euro zone debt crisis.

Bullion has gained 8 percent in 11 days as President Barack Obama and Congress have failed to reach an agreement to raise the $14.3 trillion U.S. borrowing limit with less than three weeks before the August 2 deadline.

Technical charts indicate gold should rise above $1,700 an ounce in the next few months.

"What's coming out of these debt talks is that you are seeing a lot of people focusing on the numbers and to understand the ramifications of debt burden on countries," said Robert Lutts, chief investment officer of Cabot Money Management, which manages more than $500 million in assets.

"A move to $2,000 in the next six to nine months is not that crazy in gold," Lutts said.

Spot gold rose as high as $1,607.01 an ounce and was up 0.7 percent at $1,603.89 an ounce by 2:20 p.m. EDT (1820 GMT). It has now set record highs in three out of the last four sessions. It rallied 10 straight days in 1970.

U.S. gold futures for August delivery settled up $12.30 at $1,602.40 an ounce after trading between $1,591.40 and $1,607.90. Volume came to 130,000 lots, sharply lower than turnover during last week's rallies to then-record highs.

While gold has increased over sixfold from just $250 in 2001, the metal remains one of the few commodities which has not surpassed its inflation-adjusted records -- with bullion's adjusted all-time high at above $2,300 set in 1980.

The relative strength index for gold rose above 70, often seen as a sign of overextension. Some said that gold's extreme valuation is hindering its ability to rise further and perform as a safe haven.

"If there is a plan put in place for the reduction of the U.S. deficit, gold's going to get knocked hard on that," said Jason Pride, director of investment strategy at Glenmede, a wealth management firm with $20 billion in assets.

Silver soared nearly 4 percent, topping $40 an ounce for the first time since early May. Silver hit a two-month high of $40.70 and ended up 2.5 percent at $40.27. Silver has rallied more than 15 percent in the last two weeks.

DEBT FEARS WEAKEN CURRENCIES

Gold rose to record highs across a number of major currencies, namely euro, sterling, the South African rand and the Canadian dollar.

With the United States and Europe not yet resolving their debt problems, many investors prefer to own gold than investments denominated in the dollar or the euro. The S&P 500 markets/index?symbol=us%21spx">.SPX slipped over 1 percent and the crude oil futures also fell sharply.

With five days until President Barack Obama's deadline for a deal to raise the U.S. debt ceiling, two ratings agencies already have warned of a credit rating downgrade in the event of a U.S. default.

Market watchers fear such a move could send interest rates soaring and erode the U.S. dollar's reserve currency status, which would be a huge boost for gold.

Michael Cuggino, portfolio manager of Permanent Portfolio Funds with $14 billion in assets, however, said that Federal Reserve Chairman Ben Bernanke's comment on possible more market stimulus last week and the euro zone debt fears are lifting gold more than the U.S. debt talks.

Among the platinum group metals, spot platinum was up 1.3 percent at $1,771 an ounce, while spot palladium was up 2.8 percent at $792.47 an ounce.

Prices at 2:20 p.m. EDT (1820 GMT)