China Targeted Fed To Build Informant Network and Access Data, Probe Finds (wsj.com) 31
China tried to build a network of informants inside the Federal Reserve system, at one point threatening to imprison a Fed economist during a trip to Shanghai unless he agreed to provide nonpublic economic data, a congressional investigation found. From a report: The investigation by Republican staff members of the Senate's Committee on Homeland Security and Governmental Affairs found that over a decade Fed employees were offered contracts with Chinese talent recruitment programs, which often include cash payments, and asked to provide information on the U.S. economy, interest rate changes and policies, according to a report of the findings released on Tuesday. In the case of the economist, the report said, Chinese officials in 2019 detained and tried to coerce him to share data and information on U.S. government policies, including on tariffs while the U.S. and China were in the midst of a trade war. The report doesn't say whether any sensitive information was compromised. Access to such information could provide valuable insights given the Fed's extensive analysis of U.S. economic activity, its oversight of the U.S. financial system, and the setting of interest-rate policy.
The Republican-led investigation said the Fed failed to mount an adequate response. The report's findings show "a sustained effort by China, over more than a decade, to gain influence over the Federal Reserve and a failure by the Federal Reserve to combat this threat effectively." Fed Chairman Jerome Powell strongly disputed the report's findings and called its characterizations of some employees unfair. "Because we understand that some actors aim to exploit any vulnerabilities, our processes, controls, and technology are robust and updated regularly. We respectfully reject any suggestions to the contrary," he wrote in a letter to Sen. Rob Portman of Ohio, the committee's top Republican.
The Republican-led investigation said the Fed failed to mount an adequate response. The report's findings show "a sustained effort by China, over more than a decade, to gain influence over the Federal Reserve and a failure by the Federal Reserve to combat this threat effectively." Fed Chairman Jerome Powell strongly disputed the report's findings and called its characterizations of some employees unfair. "Because we understand that some actors aim to exploit any vulnerabilities, our processes, controls, and technology are robust and updated regularly. We respectfully reject any suggestions to the contrary," he wrote in a letter to Sen. Rob Portman of Ohio, the committee's top Republican.
Exactly how did the "Russia Bad gambit" backfire? (Score:5, Insightful)
There sure have been a lot of 'China Bad!' stories being pushed on us in the past couple weeks... Is everybody ready for the pivot to that new warmongering distraction now that the 'Russia Bad!' gambit has backfired so spectacularly?
Cool conspiracy theory, but I don't see a single detail lining up with the facts. Warmongering? Who proposed sending troops to Russia? I'd hardly consider selling weapons to allies "warmongering." Words matter, dude. Selling things and sanctions are not war...just telling a woman she's pretty or buying her a drink is not the same as knocking her up....even if they could lead up to it.
Secondly, how did the "Russia Bad gambit" backfire? I'm curious to hear your take on that.
Finally, we're, for now, a world leader in economic and military matters. China and Russia are rivals and sometimes adversaries. It's quite possible BOTH could be bad. It's not an either/or...Trump AND Biden can both be failures. Pelosi and McConnell could BOTH be wretched. Coke AND Pepsi could both give you diabetes.
And more importantly, an entity can sometimes be bad and sometimes be neutral or good. China and the USA have a great trade relationship. We have differing opinions on territory expansion. We want to have robust trade, but don't want them meddling in our internal politics.
LIfe is nuanced. Perhaps you have a simple mind and want to put things in simple categories, like a small child would, but you'll just have to use more brainpower to evaluate the world because it is shades of grey and not black and white. While I have serious issues with many decisions of the Chinese gov, I am not confident enough that I can make a blanket statement "China Bad" No intelligent person could. I don't want them detaining our Fed Reserve officials and blackmailing them. That action is clearly bad, if true, but it takes a lot more before you can write off an entire foreign gov as being "bad."
Re:Exactly how did the "Russia Bad gambit" backfir (Score:5, Insightful)
>>...but it takes a lot more before you can write off an entire foreign gov as being "bad."
How about a long history of espionage, both State and corporate. The treatment of ethnic minorities. The treatment of their own people. Total disdain for the environment. Support for North Korea.
The list goes on...
Re:Exactly how did the "Russia Bad gambit" backfir (Score:5, Insightful)
China has thousands of years of history on which to base one's judgement of them. All of which adds up to "their government is run by bad people."
Re: (Score:2)
It's not about "east" vs "west". We are all humans, after all. There is only one race.
It's about whether a government is abusive of its own people, whether it's representative, and whether it invades other countries.
Re: (Score:2)
Um, you do know that modern China is a relatively modern concept right? A thousand years ago, there's a bunch of different nations with distinct languages and cultures in the geographical area of modern China. None of them will consider themselves Chinese.
Had the Nazis successful conquered all of Europe, that forced Nazi version of EU will be analogous to modern China.
Seizing a diplomat with no repercussions? (Score:1)
"Chinese officials in 2019 detained and tried to coerce him to share data and information on U.S. government policies"
Do Federal Reserve leadership travel as diplomats, official government leadership, that have immunity?
If so, detaining one is a huge violation
Re:But they make all of your stuff (Score:4, Insightful)
I agree with most of what you say, but I think we're at a point where China has the technology and the commitment to change the game entirely. For the first time in human history we have the means to construct and impose a surveillance society easily on a par with the most nightmarish dystopian science fiction stories. China seems intent on creating such a society, and tempting so-called Free World governments to join it in bringing an end to democracy across most of the world.
For that reason, I think China is uniquely dangerous at this time.
Re: (Score:1)
Ukraine will surrender within 21 days, possibly (much) sooner. We're all being lied to. [slashdot.org]
But thanks for continuing to use this account so we know that the source is worthless.
Re: (Score:2)
now that the 'Russia Bad!' gambit has backfired so spectacularly?
What spectacular? The military industrial complex is making more and more money every day off the Russia/Ukraine war.
Re: (Score:1)
Did you see Zelensky's new Annie Liebowitz Vogue cover shoot?
https://twitter.com/i/status/1... [twitter.com]
This is such a shameful joke. The people who still have the Ukraine flags all over their social media look like absolute fools right now.
Re: (Score:2)
I'm not sure what you are saying. Are you saying that the prime publicist for the Ukrainian army shouldn't appear in Vogue?
Re: (Score:2)
I think Train0987 (who posted the quote) should be modded up--for humor.
Ah, the GOP has problems with the Fed, eh? (Score:2, Funny)
In other news, J. Jonah Jameson chairs a Congressional committee to determine whether Spider-Man is a threat or a menace.
Re: (Score:1, Troll)
I'm surprised Republicans even care about crime and corruption at this point, let alone possible subterfuge.
Arrrg (Score:2)
I'm Fed up with this kind of shit!
Re: (Score:2)
Can't leave yet, this is just the appetizer.
Prison is easier (Score:5, Interesting)
For anyone that knows anything about the history of China and Taiwan, threat of prison is probably the most lenient thing they can do. If they really want to mess with you, it's not about threatening you personally. It's about your relatives. Putting you in jail you can deal. Knowing that they will do something to your relatives, your family, your kids, that's when you know they really want to push the envelope. China have had a long history of doing such things throughout history during the different dynasties and as sad it is, this is not unexpected.
To them, this is just part of keeping the peace and another obstacle in their goals.
Re: (Score:2)
Slashdot deleted my earlier comment so I'll put it here again: We get it, Slashdot. China bad!
Perhaps it was because of something you wrote?
Re:get what you paid for (Score:4, Funny)
Could have just Jared and DT Jr for free.. (Score:2, Troll)
Who lies more? (Score:1)
partisan hackery (Score:1)
the republicans and faux libertarians hate the fed.
there is an excellent chance this is a purely partisan witch hunting exercise.
Keep telling the CCP they're impenetrable. (Score:2)