The NSA's data tapping: America through the PRISM

The <em>Guardian</em>'s stories of the last two days are the highest-level US leaks since the Pentagon Papers.

Yesterday, I asked if the story about the US National Security Administration secretly  requisitioning phone records went deeper – if social networking data might not be as easily requisitioned by security forces as phone metadata. Within hours, the Guardian provided the answer, in the form of a leaked PowerPoint presentation, classified 'Top Secret', which was “apparently used to train intelligence operatives” as part a program named PRISM.

This is now the second of two such 'Top Secret' documents obtained by the Guardian in as many days; an astonishing achievement, considering that the last documents of this level of American security classification to be actually published in the press were the famous “Pentagon Papers”, by the New York Times in 1971, forty-two years ago.

Nothing that WikiLeaks published ever carried this level of security classification. Most of the documents they leaked to the press were “secret” level, with a few “confidential” and unclassified documents thrown in.

This puts the Guardian in a unique position. Whoever leaked these documents – both the Verizon court order, and the intelligence training PowerPoint presentation the following day, two separate leaks – could be in real trouble under the Espionage Act as well as several other US statutes.

It is also worth mentioning that the Nixon administration did place an injunction on the New York Times and the Washington Post over the release of the Pentagon Papers, though it was lifted after fifteen days by the Supreme Court, which upheld the papers' First Amendment rights. Attorney General Eric Holder said yesterday that the DoJ “will not prosecute any reporter from doing his or her job.”

Nonetheless, this leak is absolutely unprecedented in the internet age, and the Obama administration is developing a worrying reputation for hostility to journalists; the DoJ named Fox News reporter James Rosen as a 'co-consipirator' under the Espionage Act in order to put him under surveillance in 2010, the first time a journalist had ever been targeted this way in the US.

This also comes at a time when Army Private Bradley Manning, who gave WikiLeaks their biggest information-dump of classified material, is facing military trial for leaks. Prosecutors are seeking to prove that he was “aiding the enemy” - which is technically a capitol offence in the US, though they apparently do not intend to seek the death penalty.

US Director of National Intelligence James R Clapper gave a statement yesterday condemning the leaks, saying that they threaten “potentially long-lasting and irreversible harm to our ability to identify and respond to the many threats facing our nation,” and highlighted that everything the NSA has been shown to be doing is “within the constraints of the law”. House intelligence chairman Mike Rogers defended the phone data requisition program to the Washington Post too, saying that within the last few years, the phone record requisition program had been used to stop a terrorist attack within the United States. But libertarian senator Rand Paul called the seizure shown by the first leak an “astounding assault on the constitution”.

The PRISM logo.

Nicky Woolf is reporting for the New Statesman from the US. He tweets @NickyWoolf.

Photo: Getty Images
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How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.