Lausanne statement: Small victory for truth
By KEVIN BARRETT | Press TV | April 6, 2015
Thursday’s agreement between the P5+1 countries and Iran has been hailed as a victory for peace. Its opponents, led by Israeli Prime Minister Netanyahu, are terrified that the agreement may lead to a more peaceful and stable Middle East in which Zionist expansionism and genocide would be unsustainable.
But the agreement is not just a step toward peace. It also represents a step toward truth. And truth, even more than peace, is what truly terrifies Netanyahu and his neoconservative allies.
The Myth of “Iran nuclear crisis”
The whole “Iran nuclear crisis” is a myth. To put it more bluntly, it is a lie. And that lie was meticulously constructed by neoconservative Zionists to serve their interests, according to their philosophy of governance, which worships big lies and views truth-speaking as dangerous to society.
In reality, there is no “Iran nuclear crisis.” Iran is not developing nuclear weapons. Both the current Leader, Ayatollah Seyyed Ali Khamenei, and his predecessor, Ayatollah Rouhollah Khomeini, have issued and repeatedly confirmed edicts that absolutely ban – on religious grounds – the development of nuclear weapons.
The American CIA and Israeli Mossad essentially acknowledge this. Both agencies have issued reports stating that there is no evidence Iran is pursuing nuclear weapons.
Claims to the contrary are fraudulent. Gareth Porter’s book Manufactured Crisis shows that the same neoconservative and Israeli networks that fabricated fake evidence of Iraqi WMD also forged phony documents purporting to show an Iranian interest in nuclear weapons. Both forgeries were designed to trick America into fighting wars for Israel.
Such swindles and forgeries are “noble lies” in the eyes of neoconservatives. Their “noble lies” about 9/11-anthrax and Iraqi WMD led to the deaths of more than a million people in Iraq and Afghanistan, the creation of many millions of refugees, the long-term poisoning of those countries with depleted uranium, the rise of the so-called Islamic State, the destruction of America’s international reputation, and a groundswell of well-justified vitriolic hatred of America and Israel all over the world. The neocon claim that the ends justify the means is preposterous in light of these facts.
If US President Obama and the other P5+1 leaders had fully faced these facts and declared them openly, it would have been a smashing victory for truth. Unfortunately, hypocrisy is the way of the world and especially the way of the West. So they are retiring the “Iranian nuclear crisis” myth quietly by pretending that their hard-won agreement has saved the world from being destroyed by (nonexistent) Iranian nuclear weapons.
The P5+1 leaders are fighting a big lie with a smaller lie – a risky strategy. By refusing to expose the false premise of an “Iranian nuclear threat,” the P5+1 leaders are leaving the door open for neocons to try to revive the myth.
In hopes of preventing such retrenchment, Obama and his realist faction of the P5+1 are firing warning shots across Netanyahu’s bow – and across the bows of Israeli assets in Congress. They have officially exposed the Israeli nuclear weapons program by declassifying US government documents showing Israel has been making and stockpiling nuclear weapons for decades, unmasking Netanyahu as the worst imaginable hypocrite. And they have exposed Congressional collusion with Netanyahu that violates US Constitutional law.
Let us briefly review the case for charging Congressional representatives with violating the Constitution of the United States. According to reports apparently leaked by the US Administration, Netanyahu spied on the negotiations and fed secret information to his stooges in Congress in an attempt to torpedo an agreement with Iran.
By accepting information classified as secret under US law, provided by a foreign (Israeli) intelligence service, as part of an effort to undermine the President’s negotiations with a foreign power (Iran), numerous pro-Israel Senators and Representatives clearly violated Article II Section 2 of the American Constitution. That section holds that the power to negotiate treaties is vested solely with the President; the Senate’s role is merely “advice and consent.” In the Federalist Papers No. 64, the framers of the Constitution explain that the purpose for reserving this power to the President is to ensure that diplomacy can be conducted in secret, so that the contents of treaties can remain secret until they are submitted to the Senate for ratification.
Collaborating with a foreign intelligence service to spy on the President’s secret negotiations in order to publicize and wreck those negotiations clearly violates Article II Section 2. And if we face the unpleasant fact that Israel is an enemy of the United States, given that it has repeatedly waged war on the US by attacking US targets and mass-murdering Americans, from the Lavon Affair of 1954 to the USS Liberty massacre of 1967 to the controlled demolitions of September 11th, 2001, we have no choice but to admit that these Congressmen are guilty of treason as well.
Would the Obama Administration really consider charging Israeli assets in Congress with violating the Constitution . . . or even treason? Might Obama even consider revealing to the American people that Israel, which has essentially stolen more than a trillion dollars from America, is not America’s friend, but its worst enemy?
Senator Diane Feinstein, a wealthy liberal Zionist close to the Obama Administration, recognizes that Netanyahu’s actions are endangering Israel. In a recent interview she said she wished Netanyahu would “contain himself” because his rash actions could “backfire.”
If Netanyahu’s out-of-control chutzpah does backfire to the point that Israel’s crimes against America are fully exposed, truth will win a resounding victory.
Unfortunately, the Zionist stranglehold on mainstream media will probably prevent “big truth” from leaking out in a big way, at least in the near term. So we truth-seekers will presumably have to content ourselves with smaller victories. One such small victory is the impending “resolution” of the phony, nonexistent, Zionist-fabricated “Iran nuclear crisis.”
The Question of Jewish Identity
On Shlomo Sand’s “How I Stopped Being a Jew”
By JOAN ROELOFS | CounterPunch | April 6, 2015
Shlomo Sand’s gracefully written and translated short book, How I Stopped Being a Jew, deals with a question many have wondered about but have been afraid to ask: What makes someone a Jew? While it has been a puzzle from time immemorial, it is more salient today as Israel welcomes all deemed Jewish, regardless of their nationality or religious beliefs (or lack of them). On the other hand, non-Jews (25% of Israelis), even if born and resident in Israel, are not quite full citizens of the Jewish state.
“If the United States of America decided tomorrow that it was not the state of all American citizens but rather the state of those persons around the whole world who identify as Anglo-Saxon Protestants, it would bear a striking resemblance to the Jewish State of Israel.” (p. 82)
Sand is an Israeli, and a secular and atheist Jew, defined by his parentage as Jewish by the state of Israel. He is a professor at Tel Aviv University, specializing in French history. He is best known as the author of two controversial books, The Invention of the Jewish People (2009) and The Invention of the Land of Israel (2012).
His major argument is that the claim that today’s Jews are descendants of the ancient Israelites is simply a myth, of considerable use to the Zionist cause. Sand’s theories are ably expounded in a CounterPunch article of February 14-16, 2014, by Paul Atwood.
Briefly, Sand contends that European Jews, and even many of the Middle Eastern ones, are descendants of converts to Judaism, with no biological connection to ancient Israelites. Yet the founders of Zionism, mostly secular and atheist Jews, while rejecting the supernatural aspects and miracles of the Old Testament, proposed its stories to be accurate history.
“To justify colonization in Palestine, Zionism appealed above all to the Bible, which it presented as a legal property title to the land. It then proceeded to depict the past of various Jewish communities not as a dense and varied fresco of the motley groups that converted to Judaism in Asia, Europe and Africa, but rather as a linear history of a race-people, supposedly exiled by force from their native land and aspiring for two thousand years to return to it.” (p. 48)
This provided a somewhat shaky justification of “return” to the “Promised Land,” in already inhabited Palestine, but it was adequate to persuade the great powers, which were feeling guilty about the fate of Jews in WWII, and also anxious to have an offshore place for the survivors to migrate.
In addition, it provided an identity and rationale for the secular and atheist Jews of the US and elsewhere who were urged to “return” to
Israel to help develop and defend the land, by joining the kibbutzim and the military.
Sand, who identifies as an Israeli and wishes it were the only form of national identity for all inhabitants, rejects the historical as well as the cultural, racial, ethnic, and biological bases of Jewishness. He questions the orthodox definition of a Jew: a person born of a Jewish mother, who was herself thus born since time immemorial, “I have the increasing impression that, in certain respects, Hitler was the victor the Second World War… his perverted ideology infiltrated itself and resurfaced.” (p. 5)
He explores the idea of a common Jewish culture apart from religious belief, but finds no convincing evidence. Jews of Western Europe, Africa, and the Middle East may have practiced their religion, but in everyday life shared the culture and settlements of their fellow nationals. (p. 35) In contrast, the Yiddish speakers of Eastern Europe had a distinctive culture in dress, food, language, and religious fundamentalism. (p. 36) The children of these Jews often became atheist socialists, some of whom, rejecting the shtetl culture, founded the Zionist movement.
“The Yiddish colonists [of Israel], in fact, were very quick to discard their despised mother tongue. The first thing they needed was a language that could unite Jews the world over, and neither Theodor Herzl nor Edmond de Rothschild could communicate in Yiddish. The early Zionists subsequently aspired to create a new Jew, who would break with the popular culture of their parents and ancestors as well as with the wretched townships of the Pale of Settlement.” (p. 41)
Sand maintains that Jewish holidays serve only as nostalgia for secular Jews and do not honor their universalist culture. For example, the traditional Haggadah for Passover Seder includes an “explicit demand to exterminate all the peoples who did not believe in the God of the Jews and had dared to attack Israel. . .” (p. 67) In the book of Exodus (23:23), God promises to “exterminate all the inhabitants of Canaan in order to make room in the Promised Land for the sons of Israel.” (p. 72) The Old Testament command to love thy neighbor as thyself was applied only to fellow Jews. (p. 70) The Talmud states: “You shall be called men, but the idolaters are not called men.” (p. 71)
Sand provides a long list of Jews who adopted a universalistic morality (from Karl Marx to Naomi Klein) and also distanced themselves from the Jewish religious tradition. (p. 73)
Sand refutes those who claim that what binds all Jews is their history as unique victims of persecution: “Zionist rhetoric [insists that] there are hosts of murderers like Hitler, while there have never been and never will be victims like the Jews.” (p. 63) Yet millions of non-Jews were killed by the Nazis; persecution, genocide and ethnic cleansing have been and continue to be inflicted on many peoples.
Some critics of Sand argue that a motive for remaining Jewish despite enjoying nothing of its culture or religion is the ability to have legitimacy when criticizing Israeli policies, but this is a merely pragmatic basis for a major decision.
Sand concludes: “I wish to resign and cease considering myself a Jew.” (p. 97) Although he considers Israel “one of the most racist societies in the Western world” and the perpetrator of “cruel military colonization [of] weak and defenceless victims who are not part of the ‘chosen people,’” he remains “by everyday life and basic culture” an Israeli. (p. 98-99)
Others have resigned from Judaism in protest of Israeli policies; Sand has the additional motive of seeing no convincing basis for Jewish identity other than the religion. Contemporary concepts of free choice of religion and ideology are embodied in the Universal Declaration of Human Rights , and warmly championed by secular Jews. So why wouldn’t a person be able to resign from any or all religions and systems of belief? In contrast, one can’t resign from one’s ethnic background; Sand acknowledges that his is Austrian.
While I do not have the expertise to assess Sand’s historical assertions, the status of secular Jews is of personal significance and an issue independent of the exiles, migration, and conversions of people long ago. One problem with Sand’s choice is that Israeli authorities, Jewish religious leaders, the general public, and anti-Semites are not going to let him or others slip out of it so easily. Joining another religion makes resignation more convincing, even legally recognized in Israel, but Sand does not want to do this.
Another issue is how to have holiday celebrations, weddings, funerals, potluck suppers, youth groups, communities of shared values, etc., if you eschew the Jewish institutions. Religion has been a source of social justice activism and solace, despite its flaws. Many secular Jews remain in the faith without faith for these reasons. A solution is to join one of the religions (it means bind together) welcoming atheists, such as Unitarian Universalism, or the burgeoning atheist churches of England.
Sand’s fine accessible book is likely to provoke heated controversy, and it should.
Joan Roelofs, Professor Emerita of Political Science, Keene State College, New Hampshire can be reached at joan.roelofs@myfairpoint.net
Al-Shabaab and Kenya: the Somali Factor
By JASON MUELLER | CounterPunch | April 6, 2015
On April 2, 2015, al-Shabaab carried out a major attack on Garissa University College, Kenya, killing nearly 150 people—almost entirely students [1]. In response to this attack, Kenyan President Uhuru Kenyatta immediately called for the training of 10,000 new police officers and “urged Kenyans abroad to help attract tourists back [to Kenya]” after countries began issuing travel advisories that cautioned visiting the region [2]. Predictably, al-Shabaab’s deadliest attack inside of Kenya since its September 2013 assault on the Westgate Mall—killing 67—has dredged up the fraught question: “Is [Kenya’s] nation’s security strong enough?”[3]
At this point, we might stop for a second to consider whether the “strength” of Kenya’s national security is truly in need of bolstering, or if it is already one laden with extreme might—perhaps too much so. In fact, any serious analyses of political violence require us to move beyond the immediacy of events and dig through the social-historical contexts under which these events may have founds their roots. It doesn’t take much effort to acknowledge that an assault on a University that kills nearly 150 people is a tragic and unjustifiable event, but we must not stop there—as most news outlets do. Appeals for emotional outrage, hollow tropes of “they hate us for our freedom,” and pointless/bellicose statements declaring “We will keep hitting them until their spine is completely broken… and we will relish that moment” have no place in a serious sociological analysis, past or present [4]. Rather, we should recognize that insights on the causes of current political violence can be gained by looking at past and current policies that may have enflamed a particular situation.
Taking a brief look at the recent history of Kenyan policies towards Somalis—both internally and across-borders—we encounter some grim revelations. The October 2011 decision by the Kenyan government to invade Southern Somalia (Operation Linda Nchi: “Protect the Country”) was a critical juncture in the relationship between Kenya and al-Shabaab, as thousands of Kenyan security forces romped through Somalia. In fact, al-Shabaab immediately declared that they planned to seek revenge for the Kenyan incursion. This was made explicit in the aftermath of the Westgate Mall assault, where al-Shabaab leader Ahmed Godane released a statement saying “The attack at Westgate Mall was to torment the Kenyan leaders who’ve impulsively invaded [Somalia]. It was also a retribution against the Western states that supported the Kenyan invasion and are spilling the blood of innocent Muslims in order to pave the way for their mineral companies… So make your choice today and withdraw all your forces [or] an abundance of blood will be spilt in your country” [5]. Somali blood was also spilled at the hands of Kenyan forces in the months following their invasion, confirmed by a ‘Human Rights Watch’ report released in 2013 showing that Kenya had indiscriminately bombed and shelled the population they were sent to protect [6].
In addition to these external factors, the treatment of Somalis within Kenya has been equally troublesome. The Kenyan government has been described as its “own worst enemy,” where it has cast a wide net on countless ethnic Somalis as potential al-Shabaab suspects to be rounded up and interrogated [7]. Moreover, it has recently come to light that Kenya’s Anti-Terrorism Police Unit (ATPU)—under direct command of Kenya’s National Security Council—is potentially responsible for nearly 500 extrajudicial executions, operating under the general pretext of: “If the law cannot work, there’s another option… eliminate [them]” [8]. This “elimination” strategy is believed to be directly supported by the West, as they provide the operational intelligence while the Kenyan forces carry out the kinetic operation.
Al-Shabaab has not only carried out numerous attacks in Kenya since the Post-October 2011 “Operation,” but they have had great luck with finding sympathies within Kenyan borders as well, for many of the reasons mentioned above. Like many social problems, it certainly becomes more difficult to ameliorate a conflict after you’ve continually taken steps to exacerbate the issue—giving greater fuel for grievance formation and a calcification of “us vs. the enemy” mentality. We only need to take a cursory examination of the recent verbal exchanges between the Kenyan president and al-Shabaab to understand the severity of issue at hand. Continuing the bombastic rhetoric, President Kenyatta declared that he plans to persist “unbowed” with the scorched-earth policy against al-Shabaab, looking to respond in the “severest way possible” against those he deems responsible. Coinciding with that, we saw al-Shabaab release a statement declaring that “Kenyan cities will run red with blood” until Somalia is “liberated from Kenyan occupation” [9].
To fully explore the current conflict between al-Shabaab, Somalia, Kenya, and all of its neighboring states requires much greater length and a different forum of discussion. However, there are a few thoughts and observations that should strike all those concerned with the situation. First, heavy-handed response by the state security apparatus’ rarely serve to quell violent and disenfranchised armed opposition. To expect al-shabaab to simply dissipate by means of state-sponsored extrajudicial executions and shelling of the civilian populations near which they are potentially operating is a failure on both humanitarian and moral levels. This must be acknowledged as an independent fact, regardless of the nature of violence doled out by al-Shabaab. This applies not only to the Kenyan security forces, but all other security forces involved in the conflagration as well (In particular, Ethiopia and the United States.) Furthermore, as we have seen through countless other recent conflicts in the “global war on terror,” military-interventionist policies are likely to promote hostilities not only within the country being occupied, but potentially the diaspora of that region as well. Viewing all Somali’s as potential suspects is an objectionable violation of the very principles that these countries claim to be fighting for in a “war against terrorism.” Lastly, at the very least, citizens around the globe should continue to be highly skeptical of their governments when a foreign incursion is suggested as a cure-all for “fighting terrorism.” As we’ve seen all too often, it is not just those engaged in the immediate conflict but also those shopping at the markets or attending University that pay the price.
Jason Mueller is a Research Fellow at the ‘Center for the Study of Democracy’ and Graduate (PhD) student in the department of Sociology at the University of California, Irvine. Research areas include: Social Movements, Political Violence, and State Repression, with a particular interest in Somali affairs. He can be reached at: jmueller018@gmail.com
References.
[1] Ellis, Ralph, Ben Brumfield, and Christian Purefoy. “Five arrested in deadly attack on Kenyan college.” CNN. April 3, 2015. http://www.cnn.com/2015/04/03/africa/kenya-garissa-university-attack/index.html
[2] Honan, Edith. “Al Shabaab Kills at Least 147 at Kenyan University; Siege Ends.” Reuters. April 3, 2015. http://uk.reuters.com/article/2015/04/02/uk-kenya-security-college-idUKKBN0MT0CS20150402 ; and, “Kenya Sees Biggest Al-Shabaab Attack Yet; 147 Dead.” Modern Ghana. April 3, 2015. http://www.modernghana.com/news/609071/1/kenya-sees-biggest-al-shabaab-attack-yet-147-dead.html
[3] Ellis, Ralph, Ben Brumfield, and Christian Purefoy. “Five arrested in deadly attack on Kenyan college.”
[4] “Kenyan Troops ‘kill 60 Al-Shabab Fighters’ in Somalia.” BBC News. January 7, 2012. http://www.bbc.co.uk/news/world-africa-16455039
[5] McConnell, Tristan. “Who Is Al Shabaab Leader Ahmed Godane?” GlobalPost. October 1, 2013. http://www.globalpost.com/dispatch/news/regions/africa/kenya/131001/who-al-shabaab-leader-ahmed-godane
[6] Human Rights Watch, “World Report 2013: Somalia.” http://www.hrw.org/world-report/2013/country-chapters/somalia
[7] Hidalgo, Paul. “Kenya’s Worst Enemy.” Hiiraan. April 24, 2014. http://hiiraan.com/op4/2014/apr/54256/kenya_s_worst_enemy.aspx
[8] “Exclusive: Kenyan Counterterrorism Police Admit to Extrajudicial Killings.” Al Jazeera. December 8, 2014. http://america.aljazeera.com/articles/2014/12/8/kenyan-counter-terrorismpoliceconfesstoextrajudicialkillings.html
[9] “Kenya to Respond to Shebab Attack in ‘severest Way’: President.” AFP/Modern Ghana. April 4, 2015. http://www.modernghana.com/news/609246/1/kenya-to-respond-to-shebab-attack-in-severest-way-.html
Greece offers 5 key points for consensus with international creditors
RT | April 6, 2015
Greek Finance Minister Yanis Varoufakis has unveiled his plan on reviving the Greek economy by both meeting the IMF requirements and circuiting the austerity measures. A preliminary agreement over proposal is expected on April 24.
Greece expects to reach a preliminary agreement with creditor countries on financing the economy and the external debt at a meeting of eurozone finance ministers on April 24, Varoufakis said in an interview to Naftemporiki newspaper published Monday.
“Preliminary results will be achieved at the meeting of the Eurogroup on April 24,” he said adding that Greece expects to negotiate the unblocking of the last tranche of €7.2 billion from the EU loan program, and to negotiate restructuring of external debt of €324 billion, or 178 percent of GDP, by June.
The Greek authorities have also said they would pay a $450 million tranche of the IMF on April 9 and start a dialogue on economic issues, said the head of the IMF, Christine Lagarde Sunday after a meeting with Greek Finance Minister Yanis Varoufakis in Washington. Varoufakis, in turn, said the country intends to fulfill “all the obligations with respect to all the creditors.”
Both Lagarde and Varoufakis agreed that the uncertainty about Greece’s ability to repay debts is not in the interest of Athens. Earlier, there were fears that Greece wouldn’t be able to meet the next $450 million repayment of the IMF loan.
Greece and its international lenders have been at a dead end negotiating about Athens’ debt. The Troika of creditors insists that Greece sticks to the austerity measures in order to meet all its commitments.
Varoufakis says the austerity policy contravenes the election pledge of the newly elected government and demands the international creditors made concessions in restructuring the Greek debt.
In February, the Troika agreed to extend the bailout program until June.
Five points of Varoufakis’s plan
“Negotiations [with international lenders – Ed.] will be completed when we come to a decent agreement that will give a real prospect of stabilization and further substantial growth to the Greek economy,” said Varoufakis, noting that his Cabinet won’t agree to carry out measures leading to a recession.
Greece requires a new agreement with Europe to make its debt sustainable, said Varoufakis pointing out five terms on which the plan is expected to work out.
First, it is a reasonable level of primary budget surplus about 1.5 percent of GDP instead of 4.5 percent agreed by the previous government which has led to a severe recession.
Secondly, it is a reasonable debt restructuring that will link payments with the growth rate of nominal GDP.
In addition, Greece needs an investment package from the European Investment Bank and the European Investment Fund, which should be placed mainly in the private sector in accordance with the new, non-bureaucratic procedures.
Fourth, Greece should pass on effective restructuring of troubled loans by allocating them to a ‘Bad Bank’ unlike other resources of the Fund for financial stability.
The fifth thing is significant reforms that will give support to creative people and businesses that produce tradable goods, with export prospects, he added.
Read more: Greece preparing for Grexit, own currency – media
Where the Argentine Debt Case Stands Now, and Why it Still Matters
By Aldo Caliari – NACLA – 04/06/2015
In NML v Argentina, the world continues to witness a rare and surreal spectacle: the unpredictable consequences unleashed by a U.S. judge going rogue on the law. Last June, the U.S. Supreme Court validated a lower court ruling that granted investment group NML Capital the right to obtain payment of 100% of its claims against the Argentine government, setting a legal precedent whose impact is just beginning to become clear.
NML’s actions against Argentina demonstrate why the firm is frequently described as a “vulture fund.” After initially acquiring Argentine sovereign debt bonds following the country’s 2002 default, the investment group refused to accept the terms of the agreement that Argentina reached with over 92% of bondholders, in 2005 and 2010. Then, NML sued in U.S. courts for payment of 100% of its bonds’ value, plus interest, aiming to get what amounts to a 1600% return on its original investment.
NML’s lawsuit was part of a carefully thought-out script during Argentina’s long debt restructuring process, a strategy that vulture funds have exploited in the past. First, buy the debt of a country in trouble, on the cheap. Second, systematically reject any offer of a deal worth less than the whole claim. Third, wait until the country’s circumstances improve, aided by a mix of debt relief granted by other creditors and the normal healthy impacts that such debt cancellation, if timely and sufficient, will have on the debtor country’s economy. Then, sue for the whole amount of the claim plus interest.
It is easy to see that if all creditors followed this playbook—waiting for the debtor to get better without sacrificing any part of their credit—the strategy would not work.
Unfortunately, at the international level and for nations issuing sovereign debt, there is no recourse to anything like bankruptcy, so they are exposed to rulings – even divergent ones – made by judges with jurisdiction over particular bonds.
In this particular case, U.S. Judge Thomas Griesa decided to depart from the traditionally accepted interpretation of the pari passu clause typically inserted in sovereign bonds. Whereas the standard pari passu clause is normally understood to grant equality of rank and treatment, Griesa extended the interpretation to forbid Argentina from making payments on its restructured debt without also paying the holdout bondholders.
Argentina went ahead and deposited the payment for its restructured bondholders with the banks the instruments designate as fiduciaries – in charge of collecting the payment and giving it to the bondholders. Since the banks took the judge’s order to mean they could not disburse those funds, an anomaly has emerged: a country complying with its debt obligations falling into default due to a foreign court preventing payment from being disbursed. Amazingly, the unusual nature of the ruling was only the beginning of a sui generis scenario that continues to unfold.
Holders of bonds that were restructured under European or Argentinean jurisdiction filed claims arguing that by blocking payment on their credits—even when made by U.S. banks—Judge Griesa had overstepped his jurisdiction. In fact, the judge has already granted several “one-and-only-time” exceptions so the fiduciary banks could make payments to certain non-U.S. bondholders. When one of the banks, Citi, requested that the injunction be lifted for those payments, to avoid requesting an exception every time interest payments came due, the judge denied the request, only to later backtrack on his own decision. But while agreeing to give Citi this maneuvering room, the judge expanded the initial order – and the jurisdiction overstep – by ruling that future debt under Argentine law, if it will or can be paid in U.S. dollars, qualifies as external debt. So, financial entities helping Argentina make any such payments would be prevented from doing so by the court order.
An English court, in one of these cases, ruled that payments deposited with the fiduciary institution in New York are the property of the bondholders, and no longer belong to the debtor country. Therefore, they should not fall under the jurisdiction of a US judge. Indeed, therein lies another anomaly created by the judge’s ruling: His decision ignored the arrangement Argentina reached with 92% of creditors, but then issued measures that affect payments to these majority creditors—arguably bringing them coercively under his jurisdiction.
The Argentinean Congress also passed legislation according to which it will give non-restructured bondholders – such as NML – the same deal it granted to the restructured ones, but no more. To fulfill this commitment, the government has been depositing these payments in an Argentinean banking institution , which the “vulture funds” could claim at any moment if they so wished (so far they have not).
Some observers speculated that the Argentinean government would agree to settle with the vulture funds after expiration of the RUFO clause. RUFO stands for “right upon future offer” and is inserted in the restructured bonds to promise their holders they will have a right to be offered any better deal that other bondholders receive in the future. If Argentina had settled before the expiration of the clause, it could have faced immediate demands from majority bondholders for payments proportionally equal to those made to NML. But the expiration of the clause in January did not bring any change to Argentina’s offer to the vulture funds. These observers’ speculation failed to recognize that a settlement where NML gets paid the whole amount it demands—even in the absence of the “RUFO effects”—could invite lawsuits from other non-restructured bondholders. In fact, in the wake of the Supreme Court’s ruling last June, some of those bondholders have already filed suit hoping to follow in the footsteps of NML. Since these investors hold claims to some $15 billion, this is hardly an advisable course of action for Argentina.
Regardless of what happens with Argentina, however, repercussions from Griesa’s decision reach much farther. The ruling continues a trend that, legal experts say, has seen holdouts increasingly better treated by courts, at the expense of the soundness of sovereign debt restructurings. What former IMF economist Anne Krueger characterized in 2003 as a gap in the international financial architecture is now wider than ever. By increasing the potential rewards of holdout behavior, this recent judicial precedent will make future debt crises harder to resolve, with unpredictable systemic consequences.
At the same time, creditors might opt for a jurisdiction where the traditional understanding of pari passu still holds – such as England– at the expense of New York’s current dominance as a preferential jurisdiction for issuing sovereign debt. Indeed, a large number of prominent economists warned of this possibility following Griesa’s ruling.
Last September, facing the United States and other countries’ continuing resistance to reach a consensus, developing countries voted to create a sovereign debt workout mechanism, and negotiations have begun on establishing such a legal framework at the United Nations. Even in the worst-case scenario—failure to get all countries on board—these negotiations would create a U.N.-endorsed standard for settling future sovereign debt crises. If history is any guide, there is one thing we know for sure: sooner or later there will be a country that needs to resort to it.
Aldo Caliari has been, since 2000, staff at the Washington DC-based Center of Concern where, since 2002, he has been Director of the Rethinking Bretton Woods Project, focusing on linkages between trade and finance policy, global economic governance, debt, international financial architecture and human rights in international economic policy.
Investigators launch criminal case against US agents over pilot kidnapping, torture
RT | April 6, 2015
Russian pilot Konstantin Yaroshenko (RIA Novosti )
Russia’s top law enforcement agency has launched a criminal case against 11 US DEA officers, alleging they are complicit in a sting operation that ended in the detention and trial of Russian citizen Konstantin Yaroshenko.
The Investigation Committee – special agency for serious and high profile crimes – reported on Monday that its branch in South Russia’s Rostov Region has launched criminal cases against 11 US citizens and four Liberian citizens over charges of kidnapping, with use of violence or threats of violence. Additional charges include forcing a person to testify in a criminal process using intimidation or torture. In Russia, these crimes are punished with prison sentences of up to 12 and eight years respectively.
A US court sentenced Konstantin Yaroshenko to 20 years in 2011 for allegedly participating in a conspiracy to smuggle drugs to the United States. He was arrested in Liberia following a sting operation and handed over to the US, despite protests from Russia and violations of the diplomatic code. The pilot himself has always maintained his innocence, saying his poor command of English prevented him from understanding the nature of suggestions leveled at him by undercover DEA agents.
Yaroshenko and his relatives have repeatedly maintained the whole scheme was organized by US special services in an attempt to extract evidence against Viktor Bout – another Russian citizen illegally extradited to the US and sentenced after another sting operation.
Russian diplomats have repeatedly criticized the arrests and trials of both Yaroshenko and Bout. They say it’s an example of biased US justice based on fabricated charges.
In 2014, the Russian Foreign Ministry issued an official warning to all citizens who travel abroad, especially to countries that have extradition agreements with the United States. “The US administration makes a routine practice out of hunting for Russian citizens in third countries, with subsequent extradition and conviction in the USA, usually over dubious charges,” the document read.
Read more: ‘I was framed because of Bout’ – jailed Russian pilot
Gaza returns to 8-hour electricity schedule
Ma’an – 06/04/2015
GAZA CITY – The Gaza Strip electricity distribution company said Sunday that the Gaza Strip would return to the 8-hour program for electricity, in which power is supplied and cut off in 8-hour intervals.
Jamal al-Dardasawi, a spokesman for the company, told Ma’an that it has started to receive the first batches of electricity generated by the local generation station which returned to work Sunday evening.
Al-Dardasawi said the first 24 hours of the new schedule would be confusing, but the schedule would be balanced in all areas with a day.
The return to the program comes after the government’s decision to exempt the station of tax on fuel for three months.
The plant, Gaza’s sole power station, was to be supplied with fuel on Sunday after more than a month-long closure when the Gazan energy authority ran out of funding.
Nathmi Muhanna, PA director of border crossings in the Gaza Strip, said that 10 trucks carrying 400,000 liters of fuel would be passing though the Kerem Shalom commercial crossing on Sunday, and that a regular supply of fuel would be resumed during the week.
On Mar. 2, the Hamas-run energy authority closed the plant after they were unable to afford the taxes demanded by the PA for importing fuel into besieged Gaza.
In December last year, Qatar stepped in and donated $10 million to the PA to cover the tax, effectively exempting Hamas from paying it, but by March that money dried up.
The plant requires 550,000 liters of fuel per day to produce at capacity, the energy authority says.
Even with the plant running, Gaza has only been able to supply about 12 hours of electricity to residents each day, and that it was believed that would fall to just 6 hours after the plant’s shutdown.
Gaza’s energy authority has been plagued by supply problems due to the Israeli blockade, in place since 2007 and upheld by Egypt, as well as devastation caused by war.
Last summer the plant was targeted during the 50-day Israeli offensive on Gaza, completely knocking it out of commission. The Gaza power authority said at the time that the damages from the attack could take up to a year to fix completely.
Both Israel and Egypt also feed electricity into Gaza, but the extent of this supply is severely limited as part of the blockade.
Many individual homes have their own generators, and households can purchase, expensively, fuel that comes into Gaza for private consumption.
Obama says a vulnerable Israel would be ‘failure’ of his presidency
Press TV – April 6, 2015
US President Barack Obama says he is not seeking to weaken Israel, adding a vulnerable Tel Aviv would be a failure of his presidency.
Obama made the remakes in a 45-minute video interview with New York Times journalist Thomas L. Friedman, a staunch supporter of Israel and its policies, on Saturday. The interview was posted on Sunday.
“I would consider it a failure on my part, a fundamental failure of my presidency, if on my watch or as a consequence of work that I’ve done, Israel was rendered more vulnerable,” Obama told Friedman.
Referring to the differences between Washington and Tel Aviv over the recent mutual understanding between the P5+1 and Iran over its nuclear energy program, Obama said Israel has reason to be concerned.
Obama said that no disagreements between Israel and the United States can break their mutual bond.
He also said that America’s defense of Israel is unshakable. He said the Switzerland understanding had a clear message that if anyone messes with Israel, America will be there.
Obama once again defended the understanding achieved on issues related to Iran’s nuclear program, calling it a “once-in-a-lifetime opportunity”.
On Thursday, the P5+1 group – the US, Britain, France, China, Russia and Germany – reached an outline of a potentially historic agreement with Iran over Tehran’s civilian nuclear work that would lift all international sanctions imposed against the Islamic Republic in exchange for certain steps Tehran will take with regard to its nuclear program.
Obama has hailed the “historic understanding” with Iran, saying that it paves the way for a final agreement in three months.
Israeli officials have called it a “historic mistake which will make the world far more dangerous.”
Israeli Prime Minister Benjamin Netanyahu told CNN on Sunday that the nuclear understanding reached in Switzerland last week was a “bad deal” which would endanger Tel Aviv’s survival.
“It doesn’t roll back Iran’s nuclear program. It keeps a vast nuclear infrastructure in place,” Netanyahu said. “Not a single centrifuge is destroyed. Not a single nuclear facility is shut down including the underground facilities…. Thousands of centrifuges will keep spinning enriching uranium. That’s a bad deal.”
Israel intentionally shelled UN troops in Lebanon: Report
Press TV | April 5, 2015
A new report has revealed that Israel forces intentionally shelled a United Nations watchtower in southern Lebanon, which left a Spanish peacekeeper dead back in January.
The El Pais newspaper article published on Sunday cited extracts from a confidential Spanish military report on the incident, saying the Israeli forces corrected the trajectory of the artillery fire to hit the UN post. Thirty-six-year-old corporal Javier Soria Toledo was killed in the attack.
According to the report, Corporal Ivan Lopez Sanchez, a Spanish soldier stationed near the post, told investigators it was clear that the UN position was being targeted, noting, “Every time, they corrected the trajectory from Majidiye to the 4-28″ post, where the United Nations Interim Force Lebanon (UNIFIL) peacekeepers were stationed.
A second Spanish solider confirmed Sanchez’s report, saying the first salvo of shells landed some 500 meters north of the UN post and then Israel “corrected the trajectory towards the position.”
A third solider added that the fragmentation bombs used in the attack targeted the post’s main watchtower.
The newspaper also quoted a UN report as saying that around 20 artillery shells, 90 mortar grenades and five projectiles were fired at the UN post during the attack.
Spain and Israel have agreed to carry out a joint investigation into the incident.
The UNIFIL has some 10,000-troops, from 36 nations, which include some 600 Spanish soldiers.
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CIA’s Hidden Hand in ‘Democracy’ Groups
By Robert Parry | Consortium News | January 8, 2015
Freedom House and the National Endowment for Democracy stress their commitment to freedom of thought and democracy, but both cooperated with a CIA-organized propaganda operation in the 1980s, according to documents released by Ronald Reagan’s presidential library.
One document showed senior Freedom House official Leo Cherne clearing a draft manuscript on political conditions in El Salvador with CIA Director William Casey and promising that Freedom House would make requested editorial “corrections and changes” – and even send over the editor for consultation with whomever Casey assigned to review the paper. … continue
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