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Fallacies in Modern Medicine: Statins and the Cholesterol-Heart Hypothesis

By Donald W. Miller, Jr., MD | June 4, 2015

This commentary was published in the peer-reviewed Journal of American Physicians and Surgeons Volume 20, Number 2, Pages 54-56, Summer 2015.

Modern medicine has developed striking ways to treat coronary heart disease, which feature coronary stents implanted percutaneously and coronary artery bypass grafts performed surgically with the aid of a heart-lung machine. And then there are statins to lower cholesterol.

A 70-year-old man sees a physician for a checkup. He has no history of heart disease and no risk factors for it. He does not smoke, has no family history of diabetes or heart disease, and is physically active and not overweight. His blood pressure is 130/70. A lipid panel, however, shows that his calculated low-density lipoprotein cholesterol (LDL-C) is 195 mg/dL. Following the most recent 2013 guidelines framed by an American College of Cardiology (ACC) and American Heart Association (AHA) task force, the physician prescribes a statin for this person, rosuvastatin (Crestor) 20 mg/day, for primary prevention of atherosclerotic cardiovascular disease (ASCVD). [1]

Cardiologists declare that “cholesterol-containing lipoproteins are central to the pathogenesis of atherosclerosis.” [2] Statins, first approved for clinical use in 1987, are very effective in lowering cholesterol. High intensity statin therapy, rosuvastatin 20mg/day and atorvastatin (Lipitor) 40-80 mg, reduces LDL-C by 50 percent or greater. Moderate intensity therapy, rosuvastatin 10 mg, atorvastatin 10 mg, simvastatin (Zocor) 20-40 mg, and pravastatin (Pravachol) 40 mg/day, achieves a 30 to 50 percent reduction of LDL-C. [3]

Some 43 million Americans take statins. [4] In 2010, 11.6 percent of the population took them, 37 million, which includes 19.2 percent of people age 45-64; 39.6 percent, age 65-74; and 44.3 percent of people age 75 and older. [3] Following the 2013 ACC/AHA guidelines, an additional 10.2 million Americans without cardiovascular disease, like the patient above, have now become candidates for statin therapy. [5] One study concludes that 97 percent of black and white Americans aged 66 to 75, including all men in that age group should take statins. [6]

It is a multi-billion dollar business. Pfizer’s Lipitor went on sale in 1997 and became the best-selling drug in the history of prescription pharmaceuticals before its patent expired in 2011. Sales surpassed $125 billion. AstraZeneca’s Crestor was the top-selling statin in 2013, generating $5.2 billion in revenue that year.

Pfizer, in an advertisement, proclaims, “Lipitor reduces risk of heart attack by 36%,” based on the findings of a large randomized trial where 10,305 individuals were assigned to take Lipitor or a placebo (ASCOT-LLA). [7] The trial showed that 1.9 percent of people taking Lipitor suffered a heart attack while 3.0 percent of the placebo group had one. Considered in terms of “relative risk” reduction, the percentage Pfizer cites in the ad is correct. (It is calculated by subtracting 1.9 from 3 and dividing the difference, 1.1, by 3, which equals 36 percent.) But more realistically, the trial showed that Lipitor only reduced the “absolute risk” of having a heart attack by a tiny 1.1 percent (1.9 percent in the statin group compared with 3 percent in the placebo group). [7] Statin-trial investigators tout relative risk reduction (typically 20-40 percent in these trials) rather than the meager, real-world reduction in risk (1-2 percent taking statins).

Investigators cite relative risk to inflate claims of statins’ effectiveness. However, they report deleterious effects in terms of absolute risk, minimizing their magnitude. For example, if 6 percent of the statin group were to get diabetes during a trial compared to 2 percent with the placebo group, they will say that taking statins increases the risk of acquiring diabetes by 4 percent, not that there is 66 percent increased (relative) risk of suffering this adverse event.

Government and the pharmaceutical industry fund these multimillion dollar studies expecting correct results, so statin-trial researchers employ this particular kind of statistical deception to create the appearance that statins are effective and safe. [8] As one medical school professor puts it, “Anyone who questions cholesterol usually finds his funding cut off.” [9]

Eukaryotic animal cells make cholesterol through the “mevalonate pathway.” This pathway also produces, among other things, coenzyme Q10 (CoQ10), heme-A, and dolichol. CoQ10 is particularly important as it functions both as an antioxidant and, with heme-A, in aerobic cellular respiration—in the electron transport chain that generates adenosine triphosphate, the fuel that powers all living things. (Dolichol is required for synthesis of glycoproteins.) Statins inactivate hydroxymethylglutaryl‐coenzyme A (HMG-CoA) reductase, the enzyme cells use to synthesize mevalonate from HMG-CoA. This shuts down the mevalonate pathway. As a result, HMG-CoA reductase inhibitors (statins) block not only the synthesis of cholesterol but also CoQ10 and the other physiologically essential biomolecules that this pathway produces.

Lovastatin (Mevacor), the first statin, is a naturally occurring molecule isolated from a fungus named Aspergillus terreus. Newer statins are synthetic variations of these mycotoxins that fungi produce. Fungi make statins, as a “secondary metabolite,” to kill predatory microbes. They also kill human cells. In a review of How Statin Drugs Really Lower Cholesterol and Kill You One Cell at a Time by James and Hannah Yoseph, Peter Langsjoen writes:

Many practicing physicians have a healthy understanding of the current level of corruption and collusion among big pharmaceutical companies, governmental agencies such as the NIH and FDA, and major medical associations such as the American Heart Association, but the reader of this book will come away with the disturbing conclusion that it is even worse than imagined. Statins may be the perfect and most insidious human toxin in that adverse effects are often delayed by years and come about gradually. Further, statins frequently impair mental function to such a degree that by the time patients are in real trouble, they may lack the mental facilities to recognize the cause. [10]

This toxin targets brain cells and skeletal muscle. The brain makes up 2 percent of body weight but contains 25 percent of the body’s cholesterol. Its dry weight is 50 percent cholesterol. LDL-C delivers cholesterol to the body’s cells, except for the brain since this cholesterol-carrying lipoprotein does not cross the blood-brain barrier. Statins do. Brain cells, neurons and glial cells, manufacture their own cholesterol and the mevalonate pathway’s other products. [11] A broad spectrum of adverse cognitive reactions occur from taking statins. They include confusion, forgetfulness, disorientation, memory impairment, transient global amnesia, and dementia. [12]

Myopathy is the most common adverse effect of statin treatment, manifested by muscle aches and pains, weakness, instability, and easy fatigue. [8,13] The most severe manifestation of statin-induced muscle damage is rhabdomyolysis, which carries a 10 percent mortality rate. Fragments of ruptured muscle block renal tubules and cause kidney failure. [12] In one randomized trial of 1,016 healthy men and women given statins or a placebo, 40 percent of the women taking statins suffered exertional fatigue or decreased energy. [14]

Several randomized controlled trials have reported a statistically significant increase in cancer taking statins. [8,15] In most of these trials, a small reduction in cardiovascular deaths in the statin group is counterbalanced by an increase in deaths from other causes, notably cancer, with the result that there is in no significant difference in all-cause mortality between people taking a placebo and those prescribed statins. [16]

Statins can also cause diabetes, emotional disorders (depression, aggressiveness, suicidal ideation), hepatitis, cataracts, and strokes. [12,13,17] In January 2014 the FDA issued new safety information on statins, pointing out that “a small increased risk of raised blood sugar levels and the development of type 2 diabetes have been reported with the use of statins;” and it required drug companies add this information in the package insert with the drug. [18] Since then (as of August 2014), attorneys have filed more than 1,000 lawsuits against Pfizer, representing 4,000 women who say that taking Lipitor gave them diabetes.

Statin trials typically run for only 2 to 5 years. Investigators terminated the influential JUPITER trial endorsing statins for primary prevention of ASCVD after (a median) 1.9 years, far too short a time to reveal one of the worst “side effects” of long-term statin treatment: accelerated senescence. [19] Statins speed up the transition from midlife vigor to debilitated old age. [12]

Heart surgeon Michael DeBakey and his team, 52 years ago, found no correlation between blood cholesterol levels and severity of atherosclerosis in 1,700 patients undergoing surgical treatment of ASCVD. [20] I have observed the same thing with my heart surgery patients (unpublished observations). Evidence for the cholesterol-heart hypothesis, i.e., the lipid hypothesis, wilts upon close scrutiny, as is also the case with the diet-heart hypothesis, which indicts saturated fat along with cholesterol for causing atherosclerosis. Approached with an open mind and without confirmatory bias (ignoring evidence that disagrees with one’s beliefs), substantial evidence now proves beyond a reasonable doubt that these hypotheses are wrong. [21-25]

If not cholesterol, what causes atherosclerosis? My colleague, the late Russell Ross, professor of pathology at the University of Washington discovered the cause: Atherosclerosis is an inflammatory disease. [26] Initiated by endothelial dysfunction, with or without injury, and mediated by macrophages and T lymphocytes, the ensuing inflammatory response promotes proliferation and migration of smooth muscle cells. Russell demonstrated that atherosclerosis is a chronic inflammatory and fibroproliferative process that is fundamentally no different than that seen in cirrhosis, rheumatoid arthritis, and chronic pancreatitis.

The small benefit statins offer in dealing with ASCVD comes from their non-lipid-lowering anti-inflammatory effects, especially with their ability to suppress nuclear factor-kappa B (NF-kB), a transcription factor concerned with intensifying the inflammatory response. [27] But even if they had no harmful side effects, the “number needed to treat” (NNT) for statins weighs against their use. If a statin reduces the (absolute) risk of having a heart attack by just 2 percent, its NNT is 50. For every 50 people taking a statin, 1 person will benefit while 49 other people (98 percent) will not gain any benefit from taking the drug and will expose themselves to the potentially serious broad spectrum of adverse events that statins cause (carrying a risk considerably greater than 2 percent). Statins do more harm than good. (Nutraceuticals curcumin and resveratrol also quell inflammation, like statins, by suppressing NF-kB—with no side effects).

A catalog of factors that play a causal role in inflammatory ASCVD would include: 1) eating trans fats and too many carbohydrates and omega-6 vegetable oils (and not enough saturated fats); 2) deficiencies in various vitamins (vitamins A, C, D, E, K2, B6, B9-folic acid, and B12); 3) mineral deficiencies (magnesium, selenium, copper) and excess (iron); 4) lipid oxidation products; 5) possibly bacterial infection (Chlamydia pneumoniae); 6) diabetes; 7) abdominal obesity; 8) hypertension; 9) smoking; and 10) stress.

Cholesterol combats inflammation in addition to its other roles, which include maintaining cell membrane integrity (cell membranes are 50 percent cholesterol), facilitating cell signaling, and serving as the structural foundation for bile salts, various hormones, and vitamin D. Dealing with inflammation cholesterol acts as the body’s fire brigade, putting out inflammatory fires and helping repair damage. (Blaming cholesterol for atherosclerosis is like blaming firemen for the fire they have come to put out.)

Cementing this molecule’s physiologic importance, there are now more than 100 peer reviewed studies showing that low cholesterol levels lead to early death. [28] One of them is a study by Schatz and colleagues exploring the relationship between cholesterol levels and death rates over a 20-year period in 3,572 men aged 71-93 years. Those with the lowest cholesterol had a 35 percent increase in mortality compared with the highest cholesterol. [29] Another one, following 490 people aged 75 years for over 6 years, found that those with cholesterol levels below 193 mg/dL had a 52 percent increase in death rates compared to those with cholesterol levels above 232 mg/dL. Death rates rose by 18 percent for every 38mg/dL decrease in cholesterol levels. [30]

It is becoming increasingly clear that the cholesterol-heart hypothesis is a fallacy of modern medicine. In the future medical historians may liken the prescribing of statins to lower blood cholesterol with the old medical practice of bloodletting. Taking that vital substance out of the body is comparable to today’s practice of blocking production of cholesterol, an equally vital component, with drugs.

References

  1. Stone NJ, Robinson JG, Lichtenstein AH, et al. 2013 ACC/AHA guideline on the treatment of blood cholesterol to reduce atherosclerotic cardiovascular risk in adults: a report of the American College of Cardiology/American Heart Association Task force on Practice Guidelines. J Am Coll Cardiol 2014;63:2889-2934.
  2. Kohli P, Whelton SP, Hsu S, et al. Clinician’s guide to the updated ABCs of cardiovascular disease prevention. J Am Heart Assoc 2014;3:e001098 Available at: http://jaha.ahajournals.org/content/3/5/e001098.full Accessed March 17, 2015.
  3. Newsom, LD. Primary prevention of atherosclerotic cardiovascular disease:Controversies and clinical considerations. Ann Pharmacother   2015;49(April): 484-493.
  4. Pencina MJ, Navar-Boggan AM, D’Agostino RB, et al. Application of new cholesterol guidelines to a population-based sample. N Engl J Med 2014;370:1422-1431.
  5. Centers for Disease Control and Prevention. Health United States, 2013: With special feature on prescription drugs. Available at: http://www.cdc.gov/nchs/data/hus/hus13.pdf Accessed March 20, 2015.
  6. Miedema AMD, Lopez FL, Blaha MJ. Eligibility for statin therapy according to new cholesterol guidelines and prevalent use of medication to lower lipid levels in an older US cohort: The atherosclerosis risk in communities study cohort. JAMA Intern Med 2015;175(1):138-140.
  7. Sever PS, Dahlof B, Poulter NR, et al. Prevention of coronary and stroke events with atorvastatin in hypertensive patients who have average or lower-than-average cholesterol concentrations, in the Anglo-Scandinavian Cardiac Outcomes Trial-Lipid Lowering Arm (ASCOT-LLA): a multicenter randomized controlled trial. Lancet 2003;361:1149-1158.
  8. Diamond DM, Ravnskov U. How statistical deception created the appearance that statins are safe and effective in primary and secondary prevention of cardiovascular disease. Expert Rev Clin Pharmacol 2015;8(2):189-199.
  9. Rosch P. Quote in: Cholesterol skeptics and the bad news about statins. Center for Medical Consumers, Cholesterol Skeptics: Conference Report. Available at: http://medicalconsumers.org/2003/06/01/cholesterol-skeptics-conference-report/ Accessed March 21, 2015.
  10. Langsjoen P. Review of How Statin Drugs Really Lower Cholesterol and Kill You One Cell at a Time by James and Hannah Yoseph. J Am Phys Surg 2013;18:30.7
  11. Mauch DH, Nagler K, Schumacher S. CNS synaptogenesis promoted by glia-derived cholesterol. Science 2001:294(5545):1354-1457.
  12. Graveline D. Adverse Effects of statin drugs: a physician patient’s perspective. J Am Phys Surg 2015;20:7-11.
  13. Golomb BA, Evans MA. Statin adverse effects: a review of the literature and evidence for a mitochondrial mechanism. Am J Cardiovasc Drugs 2008;8(63):373-418.
  14. Golomb BA, Evans MA, Dimsdale JE, et al. Effects of statins on energy and fatigue with exertion: results from a randomized controlled trial. Arch Intern Med 2012;172:1180-1182.
  15. Ravnskov U, Rosch PJ, McCully KS. The statin-low cholesterol-cancer conundrum. QJM 2012;105:383-388.
  16. Colpo A. The Great Cholesterol Con: Why everything you’ve been told about cholesterol, diet and heart disease is wrong! Lulu.com; 2006.
  17. Culver AL, Ockene IS, Balasubramanian R, et al. Statin use and risk of diabetes mellitus in postmenopausal women in women’s health initiative. Arch Intern Med 2012;172(2):144-152.
  18. FDA expands advice on statin risk. FDA Consumer Health Information/U.S. Food and Drug Administration. January 2014. Available at: http://www.fda.gov/downloads/ForConsumers/ConsumerUpdates/UCM293705.pdf Accessed March 22, 2015.
  19. Ridker PM, Danielson E, Fonseca FA, et al. Rosuvastatin to prevent vascular events in men and women with elevated C-reactive protein. N Engl J Med 2008;359:2195-2207.
  20. Garret HE, Horning EC, Creech RG, DeBakey M. Serum cholesterol values in patients treated surgically for atherosclerosis. JAMA 1964;189:655-659.
  21. Iso H, Jacobs Jr DR, Wentworth D, et al. Serum cholesterol level and six-year mortality from stroke in 350,977 men screened for the multiple risk factor intervention trial. N Engl J Med 1989;320:904-910.
  22. Ravnskov U. The Cholesterol Myths: Exposing the Fallacy that Saturated Fat and Cholesterol Cause Heart Disease. Washington, D.C.: New Trends Publishing; 2000.
  23. Ravnskov U. A hypothesis out-of-date: The diet-heart idea. J Clin Epidemiol 2002;55:1057-1063,
  24. Taubes G. Good Calories, Bad Calories: Fats, Carbs, and the Controversial Sciance of Diet and Health. New York: Anchor Books; 2008.
  25. Evans D. Cholesterol and Saturated Fats Prevent Heart Disease: Evidence from 101 Scientific Studies. Guilford, Surrey, UK; Grosvenor House Publishing: 2012.
  26. Ross R. Atherosclerosis—an inflammatory disease N Engl J Med 1999; 340:115-126.
  27. Hölschermann H, Schuster D, Parviz B, et al. Statins prevent NF-kB transactivation independently of the IKK-pathway in human endothelial cells. Atherosclerosis 2006;185:240-245.
  28. Evans D. Low Cholesterol Leads to an Early Death: Evidence from 101 Scientific Papers. Guilford, Surrey, UK; Grosvenor House Publishing: 2012.
  29. Schatz IJ, Masaki K, Yano K, et al. Cholesterol and all-cause mortality in elderly people from the Honolulu Heart Program: a cohort study. Lancet 2001;358(9279):351-355.
  30. Tuikkala P, Hartikainen S, Korhonen MF, et al. Serum total cholesterol levels and all-cause mortality in a home-dwelling elderly population: a six-year follow-up. Scand J Prim Health Care 2010;28(2):121-127.

Donald Miller (send him mail) is a retired cardiac surgeon and Emeritus Professor of Surgery at the University of Washington School of Medicine in Seattle. He is a member of Doctors for Disaster Preparedness

June 4, 2015 Posted by | Corruption, Science and Pseudo-Science | | Leave a comment

MI5 blackmailed child sex abusers

Press TV – June 3, 2015

Some reports suggest that the British Security Service, MI5, shielded pedophile politicians from prosecution to blackmail them back in the 1970s.

“There’s now substantial evidence that the Security Service were condoning that, they knew of it and made use of it so as to blackmail the abusers and prevent some of the abusers being brought to book at the time,” Belfast Telegraph quoted a lawyer for one of the child abuse victims as saying.

The revelation was made in Belfast High Court during the hearing of the Kincora Boy’s Home case.

The victims of the abuse at the Kincora boys’ home in Belfast have filed the legal action with the aim to force a full independent probe that would have the authority to compel the secret service to hand over documents and witnesses to give testimonies.

‘Utterly scandalous’

Meanwhile, Amnesty International announced that investigation into child abuse at Kincora Boys’ Home in east Belfast should be investigated by the UK parliament.

“The Kincora affair may be one of the most disturbing episodes of the Troubles…The claims that MI5 turned a blind eye to child abuse, actively blocked a police investigation, and instead used the pedophile ring for intelligence-gathering purposes, are utterly scandalous,” said Amnesty International’s Northern Ireland Programme Director Patrick Corrigan.

‘Catalog of cover-ups’

Founder and Spokesperson of National Association for People Abused in Childhood expressed the hope that the forthcoming national inquiry would scrutinize the cover-ups.

“There has been a catalog of cover-ups and security services, MI5, senior police officers, probably senior politicians,” Peter Saunders told Press TV on Wednesday.

The British government has so far refused to include the case within the scope of a child abuse inquiry established by Home Secretary Theresa May.

London is seeking a different inquiry in which the MI5 would not be forced to hand over documents or compel witnesses to testify regarding the abuse at the boys’ home.

June 4, 2015 Posted by | Corruption, Deception | , | Leave a comment

Neocon Fugitive Given Ukraine Province

By Robert Parry | Consortium News | June 2, 2015

The latest political move by the U.S.-backed “pro-democracy” regime in Ukraine was to foist on the people of Odessa the autocratic Georgian ex-President Mikheil Saakashvili, a neoconservative favorite and currently a fugitive from his own country which is seeking him on charges of human rights violations and embezzlement.

New York Times correspondent David M. Herszenhorn justified this imposition of a newly minted Ukrainian citizen on the largely Russian-speaking population of Odessa by saying that “the Ukrainian public’s general willingness to accept the appointment of foreigners to high-level positions underscores the deep lack of trust in any government after nearly a quarter-century of mismanagement and corruption.”

But Herszenhorn made no apparent effort to gauge how willing the people of Odessa are to accept this choice of a controversial foreign politician to govern them. The pick was made by President Petro Poroshenko and is just the latest questionable appointment by the post-coup regime in Kiev.

For instance, shortly after the Feb. 22, 2014 putsch that ousted elected President Viktor Yanukovych, the new U.S.-endorsed authorities in Kiev named thuggish oligarch Igor Kolomoisky to be governor of Dnipropetrovsk in southeastern Ukraine. Kolomoisky, regarded as one of Ukraine’s most corrupt billionaires, ruled the region as his personal fiefdom until he was ousted by Poroshenko earlier this year in a dispute over Kolomoisky’s use of strong-arm tactics to maintain control of Ukrainian energy companies. [See Consortiumnews.com’s “Ukraine’s Oligarchs Turn on Each Other.”]

Poroshenko also has granted overnight Ukrainian citizenship to other controversial foreigners to hold key positions in his government, including Finance Minister Natalie Jaresko, an ex-U.S. State Department official whose qualifications included enriching herself through her management of a $150 million U.S.-taxpayer-financed investment fund for Ukraine. [See Consortiumnews.com’s “Ukraine Finance Minister’s ‘American Values’.”]

Beyond his recruitment of questionable outsiders, Poroshenko has made concessions to Ukraine’s far-right nationalists, including signing legislation to extend official recognition to Ukrainian fascists who collaborated with the Nazis in killing Jews and Poles during World War II. In a bitter irony, the new law coincided with the world’s celebration in April of the 70th anniversary of Russian and U.S. troops bringing an end to the Holocaust. [See Consortiumnews.com’s “How Ukraine Commemorates the Holocaust.”]

Now Poroshenko has given Saakashvili his own province to govern, rescuing him from an obscure existence in the Williamsburg neighborhood of Brooklyn, New York. According to a New York Times profile last September, Saakashvili was there “writing a memoir, delivering ‘very well-paid’ speeches, helping start up a Washington-based think tank and visiting old boosters like Senator John McCain and Victoria Nuland, the assistant secretary of state.”

McCain and Nuland were key neocon backers of the coup that ousted Yanukovych and touched off the bloody civil war that has killed thousands of ethnic Russians in eastern Ukraine, while also reviving Cold War tensions between the West and Russia. Before the coup, McCain urged on right-wing protesters with promises of U.S. support and Nuland was overheard hand-picking Ukraine’s new leadership, saying “Yats is the guy,” a reference to Arseniy Yatsenyuk, who became prime minister after the coup.

According to the Times profile, Saakashvili also “entertained David H. Petraeus, the former director of the Central Intelligence Agency,” another neocon favorite who ran into legal trouble himself when the FBI discovered he had shared top-secret information with his biographer/lover and then lied about it to FBI agents. Petraeus, however, received only a suspended sentence and a fine in contrast to intelligence-community whistleblowers who have faced serious prison time.

Models, Nude Artist and Massage Therapist

While cooling his heels in Brooklyn, Saakashvili fumed over charges leveled against him by prosecutors in his home country of Georgia. According to the Times profile, Saakashvili was accused of “using public money to pay for, among other things, hotel expenses for a personal stylist, hotel and travel for two fashion models, Botox injections and hair removal, the rental of a yacht in Italy and the purchase of artwork by the London artist Meredith Ostrom, who makes imprints on canvases with her naked, painted body. …

“Mr. Saakashvili is also accused of using public money to fly his massage therapist, Dorothy Stein, into Georgia in 2009. Mr. Saakashvili said he received a massage from Ms. Stein on ‘one occasion only,’ but Ms. Stein said she received 2,000 euros to massage him multiple times, including delivering her trademark ‘bite massage.’ ‘He gave me a bunch of presents,’ said Ms. Stein, who splits her time between Berlin and Hoboken,” including a gold necklace.

The Georgian prosecutors also have charged Saakashvili with human rights violations for his violent crackdown on political protesters in 2007.

However, in Herszenhorn’s May 31 article about Saakashvili’s appointment as Odessa’s governor, the Times correspondent (who has behaved more like a pro-Kiev propagandist than an objective reporter) wrote that the criminal charges against Saakashvili and other officials from his government are “widely perceived as a campaign of political retribution.”

Herszenhorn didn’t say where he had gained that perception, but it is true that Official Washington’s neoconservatives will broach no criticism of their longtime hero Saakashvili, who was a big booster of the Iraq War and even named a boulevard in the Georgian capital of Tbilisi in honor of U.S. President George W. Bush.

Saakashvili apparently felt that his close ties to the Bush administration would protect him in summer 2008 when he provoked a border clash with Russian troops over the rebellious territory of South Ossetia. Georgia suffered a sharp military defeat and Saakashvili’s political star quickly faded among his countrymen, leading to his party’s rejection at the polls and his exile.

But Saakashvili’s love of the high life might find similar attitudes among some of the other “carpetbaggers” arriving in Ukraine to take Ukrainian citizenship and get top jobs in the post-coup government. Estonian Jaanika Merilo, an associate of Finance Minister Jaresko’s, was brought in to handle Ukraine’s foreign investments, but Merilo is best known on the Internet for her provocative party photos.

Janika Merilo, the Estonian being put in charge of arranging foreign investments into Ukraine. (From her Facebook page via Zero Hedge)
Janika Merilo, the Estonian being put in charge of arranging foreign investments into Ukraine. (From her Facebook page via Zero Hedge)
Janika Merilo, an Estonian brought into the Ukrainian government to oversee foreign investments. (From her Facebook page via Zero Hedge)
Janika Merilo, an Estonian brought into the Ukrainian government to oversee foreign investments. (From her Facebook page via Zero Hedge)

Yet, as much fun as some of these well-connected politicians and bureaucrats may be having in Kiev, the plight of the average Ukrainian continues to worsen as “free-market” reforms demanded by the International Monetary Fund take hold. Those “reforms” have included slashing old-age pensions, removing worker protections, and hiking the price of heating fuel.

Now, the latest “democratic” reform is to appoint a neocon politician on the run from his own country’s criminal justice system to govern what is likely to be a hostile population of ethnic Russians in Odessa.

On May 2, 2014, neo-Nazi street fighters set fire to Odessa’s Trade Union Building and burned alive dozens of ethnic Russians who had taken refuge there. The building was also spray-painted with Nazi slogans, including praise for the Galician SS, a Ukrainian force that fought with the Nazis and slaughtered Jews. [See Consortiumnews.com’s “Ukraine’s Dr. Strangelove Reality.”]

Overseeing that tense city now is an unelected ex-Georgian neocon politician who is facing charges in his homeland for human rights abuses and misuse of government funds — more “democracy promotion” in the tragic land of Ukraine.

~

Investigative reporter Robert Parry broke many of the Iran-Contra stories for The Associated Press and Newsweek in the 1980s. You can buy his latest book, America’s Stolen Narrative, either in print here or as an e-book (from Amazon and barnesandnoble.com)

June 3, 2015 Posted by | Civil Liberties, Corruption | , , , , , , | Leave a comment

Victory for Ecuador as US Court Rejects Fugitive Bankers’ Case

teleSUR | June 2, 2015

The state of Ecuador won an important case Monday brought against it by the Isaias brothers, a pair of fugitive bankers who were convicted of embezzlement for their role as the heads of bank Filanbanco during the Ecuadorean banking crisis in the late 1990s.

Ecuador’s attorney general revealed in a communique that the court of the Southern District of New York has denied a suit by William and Roberto Isaias, which sought to sue Ecuador for US$1 billion, after the state seized approximately 200 business connected to the brothers when the pair fled the country.

The U.S. court determined that the suit did not fall under its jurisdiction, as the state of Ecuador enjoys sovereign immunity. According to the communique, the court also found that the brothers had failed to prove that the seizures were illegitimate.

The brothers have the option to appeal within 30 days. Ecuador is still seeking the extradition of William and Roberto Isaias.

However, the pair have received preferential treatment, due to their connections to U.S. Senator Robert Menendez, himself the subject of a corruption investigation.

The brothers were found guilty in absentia and sentenced to eight years in prison by the Ecuadorean National Court, which determined that the brothers had falsified Filanbanco’s financial statements. Filanbanco received millions from the Ecuadorean state in bail-outs during the country’s bank crisis.

This is the second case the Isaias brothers have lost in U.S. courts, after a 2014 ruling determined that Ecuador could attempt to seize properties belonging to the brothers in Florida in order to recover a portion of the US$200 million the government of Ecuador says it is still owed.

June 2, 2015 Posted by | Corruption | , | Leave a comment

‘Human Rights’ and Soft Power in Russia

By Eric Draitser | New Eastern Outlook | June 1, 2015

The news that Lyudmila Alekseyeva, head of the Russian Non-Governmental Organization (NGO) the Moscow-Helsinki Group, will be returning to the Presidential Council for Human Rights, has been heralded by many in the liberal establishment in Russia as a victory for their cause. Indeed, as an adversary of President Putin on numerous occasions, Alekseyeva has been held as a symbol of the pro-Western, pro-US orientation of Russian liberals who see in Russia not a power seeking independence and sovereignty from the global hegemon in Washington, but rather a repressive and reactionary country bent on aggression and imperial revanchism.

While this view is not one shared by the vast majority of Russians – Putin’s approval rating continues to hover somewhere in the mid 80s – it is most certainly in line with the political and foreign policy establishment of the US, and the West generally. And this is precisely the reason that Alekseyeva and her fellow liberal colleagues are so close to key figures in Washington whose overriding goal is the return of Western hegemony in Russia, and throughout the Eurasian space broadly. For them, the return of Alekseyeva is the return of a champion of Western interests into the halls of power in Moscow.

Washington and Moscow: Competing Agendas, Divergent Interests

Perhaps one should not overstate the significance of Alekseyeva as an individual. This Russian ‘babushka’ approaching 90 years old is certainly still relevant, though clearly not as active as she once was. Nevertheless, one cannot help but admire her spirit and desire to engage in political issues at the highest levels. However, taking the pragmatic perspective, Alekseyeva is likely more a figurehead, a symbol for the pro-Western liberal class, rather than truly a militant leader of it. Instead, she represents the matriarchal public face of a cohesive, well-constructed, though relatively marginal, liberal intelligentsia in Russia that is both anti-Putin, and pro-Western.

There could be no better illustration of this point than Alekseyeva’s recent meeting with US Assistant Secretary of State Victoria Nuland while Ms. Nuland was in Moscow for talks with her Russian counterparts. Alekseyeva noted that much of the meeting was focused on anti-US perception and public relations in Russia, as well as the reining in of foreign-sponsored NGOs, explaining that, “[US officials] are also very concerned about the anti-American propaganda. I said we are very concerned about the law on foreign agents, which sharply reduced the effectiveness of the human rights community.”

There are two distinctly different, yet intimately linked issues being addressed here. On the one hand is the fact that Russia has taken a decidedly more aggressive stance to US-NATO machinations throughout its traditional sphere of influence, which has led to demonization of Russia in the West, and the entirely predictable backlash against that in Russia. According to the Levada Center, nearly 60 percent of Russians believe that Russia has reasons to fear the US, with nearly 50 percent saying that the US represents an obstacle to Russia’s development. While US officials and corporate media mouthpieces like to chalk this up to “Russian propaganda,” the reality is that these public opinion numbers reflect Washington and NATO’s actions, not their image, especially since the US-backed coup in Ukraine; Victoria Nuland herself having played the pivotal role in instigating the coup and setting the stage for the current conflict.

So while Nuland meets with Alekseyeva and talks of the anti-US perception, most Russians correctly see Nuland and her clique as anti-Russian. In this way, Alekseyeva, fairly or unfairly, represents a decidedly anti-Russian position in the eyes of her countrymen, cozying up to Russia’s enemies while acting as a bulwark against Putin and the government.

And then of course there is the question of the foreign agents law. The law, enacted in 2012, is designed to make transparent the financial backing of NGOs and other organizations operating in Russia with the financial assistance of foreign states. While critics accuse Moscow of using the law for political persecution, the undeniable fact is that Washington has for years used such organizations as part of its soft power apparatus to be able to project power and exert influence without ever having to be directly involved in the internal affairs of the targeted country.

From the perspective of Alekseyeva, the law is unjust and unfairly targets her organization, the Moscow-Helsinki Group, and many others. Alekseyeva noted that, “We are very concerned about the law on foreign agents, which sharply reduced the effectiveness of the human rights community… [and] the fact the authorities in some localities are trying more than enough on some human rights organizations and declare as foreign agents those who have not received any foreign money or engaged in politics.”

While any abuse of the law should rightly be investigated, there is a critical point that Alekseyeva conveniently leaves out of the narrative: the Moscow-Helsinki Group (MHG) and myriad other so-called “human rights” organizations are directly supported by the US State Department through its National Endowment for Democracy, among other sources. As the NED’s own website noted, the NED provided significant financial grants “To support [MHG’s] networking and public outreach programs. Endowment funds will be used primarily to pay for MHG staff salaries and rental of a building in downtown Moscow. Part of the office space rented will be made available at a reduced rate to NGOs that are closely affiliated with MHG, including other Endowment grantees.” The salient point here is that the salary of MHG staff, the rent for their office space, and other critical operating expenses are directly funded by the US Government. For this reason, one cannot doubt that the term “foreign agent” directly and unequivocally applies to Alekseyeva’s organization.

But of course, the Moscow-Helsinki Group is not alone as more than fifty organizations have now registered as foreign agents, each of which having received significant amounts from the US or other foreign sources. So, an objective analysis would indicate that while there may be abuses of the law, as there are of all laws everywhere, by and large it has been applied across the board to all organizations in receipt of foreign financial backing.

It is clear that the US agenda, under the cover of “democracy promotion” and “NGO strengthening” is to weaken the political establishment in Russia through various soft power means, with Alekseyeva as the symbolic matriarch of the human rights complex in Russia. But what of Putin’s government? Why should they acquiesce to the demands of Russian liberals and allow Alekseyeva onto the Presidential Council for Human Rights?

The Russian Strategy

Moscow is clearly playing politics and the public perception game. The government is very conscious of the fact that part of the Western propaganda campaign is to demonize Putin and his government as “authoritarian” and “violators of human rights.” So by allowing the figurehead of the movement onto the most influential human rights-oriented body, Moscow intends to alleviate some of that pressure, and take away one of the principal pieces of ammunition for the anti-Russia propagandists.

But there is yet another, and far more significant and politically savvy reason for doing this: accountability. Putin is confident in his position and popularity with Russians so he is not at all concerned about what Alekseyeva or her colleagues might say or do on the Council. On the other hand, Putin can now hold Russian liberals accountable for turning a blind eye to the systematic violations of human rights by the Kiev regime, particularly in Donbass.

One of the primary issues taken up by the Presidential Council for Civil Society and Human Rights in 2014 was the situation in Ukraine. In October 2014, President Putin, addressing the Council stated:

[The developments in Ukraine] have revealed a large-scale crisis in terms of international law, the basic norms of the Universal Declaration of Human Rights and the Convention on Prevention and Punishment of the Crime of Genocide. We see numerous violations of Articles 3, 4, 5, 7 and 11 of the 1948 UN Universal Declaration of Human Rights and of Article 3 of the Convention on Prevention and Punishment of the Crime of Genocide of December 9, 1948. We are witnessing the application of double standards in the assessment of crimes against the civilian population of southeastern Ukraine, violations of the fundamental human rights to life and personal integrity. People are subjected to torture, to cruel and humiliating punishment, discrimination and illegal rulings. Unfortunately, many international human rights organisations close their eyes to what is going on there, hypocritically turning away.

With these and other statements, Putin placed the issue of Ukraine and human rights abuses squarely in the lap of the council and any NGOs and ostensible “human rights” representatives on it. With broader NGO representation, it only makes it all the more apparent. It will now be up to Alekseyeva and Co. to either pursue the issues, or discredit themselves as hypocrites only interested in subjects deemed politically damaging to Moscow, and thus advantageous to Washington. This is a critical point because for years Russians have argued that these Western-funded NGOs only exist to demonize Russia and to serve the Western agenda; the issue of Ukraine could hammer that point home beyond dispute.

And so, the return of Alekseyeva, far from being a victory for the NGO/human rights complex in Russia, might finally force them to take the issue of human rights and justice seriously, rather than using it as a convenient political club to bash Russians over the head with. Perhaps Russian speakers in Donetsk and Lugansk might actually get some of the humanitarian attention they so rightfully deserve from the liberals who, despite their rhetoric, have shown nothing but contempt for the bleeding of Donbass, seeing it as not a humanitarian catastrophe, but a political opportunity. Needless to say, with Putin and the Russian government in control, the millions invested in these organizations by Washington have turned out to be a bad investment.

June 2, 2015 Posted by | Corruption, Deception | , , , , , , | Leave a comment

Musk defends receiving $4.9 billion in government support for Tesla, SolarCity and SpaceX

RT | June 1, 2015

Tesla CEO Elon Musk defended the backing his companies get from state and federal sources as legitimate business practices, blasting a newspaper report about government subsidies as “inexcusable” and inaccurate.

According to the report published by the Los Angeles Times over the weekend, Musk’s companies – Tesla, SolarCity and SpaceX – have received an estimated $4.9 billion in government support in total over the years.

The electric entrepreneur didn’t deny the company gets the incentives, however he went on CNBC’s Power Lunch show on Monday, blasting the report as “incredibly misleading and deceptive to the reader.”

“Musk and his companies’ investors enjoy most of the financial upside of the government support, while taxpayers shoulder the cost,” wrote the LA Times, adding that public records show “a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups.”

“The article makes it seem as though my company is getting some huge check, which is fundamentally false,” said Musk.

The subsidies have been disclosed in the companies’ filings and public records, but no one has tallied all the various forms of public assistance over time, the paper said. Its estimates of subsidies are based on state and federal records, interviews with local and state officials, credit analysts, and watchdog groups.

According to the LA Times, Tesla Motors has received $2.391 billion in government subsidies, while SolarCity has received $2.516 billion. Space Exploration Technologies (SpaceX), a private company that does not publicly report financial performance, received $20 million in local incentives and rebates for a space launch facility in Texas.

Among the examples cited by the paper was a $750 million solar panel factory in Buffalo, New York, which Musk’s SolarCity leased for $1 a year. The company will also not pay property taxes for a decade, amounting to $260 million in savings.

Tesla is getting $1.3 million from Nevada to build a battery factory near Reno, and has received more than $517 million from other automakers by selling environmental credits, known as carbon offsets.

Though after ten years in business Tesla and SolarCity still operate at a net loss, the stocks of both companies are riding high on future potential, the LA Times reported. … Full article

June 1, 2015 Posted by | Corruption | , , , , , , , | Leave a comment

Does Egypt have a Government?

By Lawrence Davidson | To The Point Analyses | May 31, 2015

Military officers often take over countries, but only a fool would call the result a government. Governments do not have to be democratic, but they do have to be rule-based. The rules can come in the form of generic laws or customs, but in all cases they have to be promulgated, that is, be publicly set forth.

In addition, obedience to the rules has to rest on something more than fear. If whatever system is running the show is subject to the whim of an individual or group of individuals, or operates through rules known only to the police, or relies mostly on terror, it is not a true government. It is despotism of some sort. Most instances of military rule fit the description of despotism. Speaking of such regimes as governments is just so much nonsense.

By the way, dictionary definitions of government are usually inadequate, restricting themselves to vague statements like “a particular system used to control a country.“ If the mafia took over Italy, would you understand their form of control as government? There has been progress over the years as to what really constitutes a government, and the rule of the condottieri no longer fits.

Historically the United States and the politicians who create its foreign policy do not bother with such distinctions. Often they seem to prefer despotisms. Be it for ideological or economic reasons, the U.S. has indulged in regime change for almost 200 years, and a good number of times the beneficiaries of such change are the local military bosses.

This history has had a cumulative effect on U.S. credibility: today, when Washington proclaims its mission is to bring democratic government to an otherwise benighted world, almost no one outside of the USA believes it. This is a fact never mentioned by the mainstream American media.

An example of a current military despotism that has been, and is now again, the recipient of U.S. military largesse is the one in Egypt. The military has run things in Egypt since 1952, when a group of officers overthrew King Farouk and emasculated the Egyptian parliament. That situation lasted until 2011, when a popular revolt forced the resignation of Hosni Mubarak, an air force officer who had, for over 30 years, masqueraded as Egypt’s “fourth president.”

Mubarak’s fall was followed by a brief hiatus of democracy. During this time the Egyptian people actually engaged in a relatively free and fair election in which they selected a legitimate president in the person of Mohamed Morsi. The fact that Morsi was a religious Muslim did not make his election any less legitimate, though it did present those who did not vote for him with a choice:

Would they accept an elected government led by a devout Muslim, with the implied possibility of altering its orientation though future elections, or would they reject the electoral results and revert back to military despotism, with the explicit awareness that changing that form of rule would require another popular revolution? We now know that a good number of those who did not vote for Morsi chose to return to military control.

That sizable minority certainly has gotten what they wished for. Egypt is now back under the control of a military dictatorship, this time led by Abdel Fattah el-Sisi, a “field marshal” who became the “sixth president” of Egypt by pulling off a coup in 2013, followed by a rigged national election.

What have “President” el-Sisi and his lieutenants been busy doing since putting aside their uniforms for tailored suits? Here is a list of items based on recent news reports as well as anonymously released recordings, which (shades of Richard Nixon) the Egyptian strongmen were at once arrogant and stupid enough to make.

–They have been busy manipulating the Egyptian news media so as to construct a cult of personality in which el-Sisi is promoted as a heroic figure “carrying the responsibility of the country in an existential crisis.” The media have been instructed to describe el-Sisi as a “brave, special, free and patriotic Egyptian.” To criticize him is to “slander this beautiful thing we have found in our lives.” One can’t help wonder who dreamt up this terminology.

–They have been busy funneling money into special accounts controlled by the military. It is of particular interest that one of these accounts is named the “Tamarrod” account. Tamarrod was the name of a supposedly independent secular and “democratic” youth movement that was very active in calling for the removal of Mohamed Morsi. This raises the question of whether significant elements of Egypt’s so-called democratic movement opposing Morsi were no more than fronts funded and manipulated by the military.

–They have been busy manipulating the courts and legal system. This should come as no surprise, because at least since Mubarak’s time the Egyptian courts have been stacked with supporters of military rule. The elected Morsi government ran headlong into a so-called legal barrier when almost everything it attempted was overruled by a court system loyal to the deposed Mubarak dictatorship. Subsequently one of the charges being brought against Morsi by the restored military despotism is “insulting the judiciary.”

–They have been busy destroying any person or group who would oppose them, including the Muslim Brotherhood, which has been declared “a terrorist organization.” For the Egyptian military to call the Muslim Brothers terrorists is like Israel calling the Palestinians terrorists. At the very least it is an example of projecting onto your foes tactics that you yourself practice.

The el-Sisi cabal has also imprisoned and tried Mr. Morsi on a long list of manufactured charges, some of which may result in his execution. Last but not least, members of the truly independent secular democratic movement have been harassed and imprisoned.

–And, of course, el-Sisi, this “beautiful thing” that has come into the lives of all Egyptians, has allied with Israel to oppose Palestinian resistance to occupation. As a result he and his cabal are now actively complicit in the ruination of every Palestinian trapped in Gaza.

There are many names you can give the present nature of rule in Egypt. You can call it a dictatorship, a despotism, a tyranny, a garrison state, unlimited rule, or even a reign of terror carried on by thugs in suits. All of these would be relatively accurate.

What you can’t call it is a government. To do so would slander the centuries-long struggle against all forms of despotism that have taken place both in the West and in the East. And, even more to the point, it would slander all those Egyptians who have, at great personal risk, stayed loyal to the goal of democracy for their country.

May 31, 2015 Posted by | Corruption | , , , , | Leave a comment

Fugitive Georgian Ex-President Appointed Governor of Odessa Region

RT | May 30, 2015

Georgia’s former President Mikhail Saakashvili, wanted by his country’s prosecutors for embezzlement, abuse of power and politically-motivated attacks, has been appointed governor of Ukraine’s Odessa region.

President Petro Poroshenko personally appointed Saakashvili to the post, saying the former Georgian leader is “a friend of Ukraine.” In a statement at Saakashvili’s nomination in Odessa, Poroshenko said the two had known each other for 25 years, since university days.

According to Poroshenko, Saakashvili “has proven with deeds, not words that he can not only give birth to creative ideas, but also put them into practice.” He added Georgia’s ex-president had changed his country “in the direction of transparency, effectiveness, anti-corruption, appeal for foreign investors, fair justice, protection of citizen’s rights, democracy,” something Poroshenko “would like to see very much” in Odessa.

Earlier on Saturday, Saakashvili was given Ukrainian citizenship under Petro Poroshenko’s personal decree, published on his website. According to the Ukrainian constitution, only a citizen can become an official at governor level.

Mikhail Saakashvili left Georgia in autumn 2013, days before his presidential term expired. He has been living abroad ever since.

In spring 2014, Georgia’s new ruling coalition accused Saakashvili of embezzling hundreds of thousands of dollars from the state budget. According to Georgian officials’ accounts, he spent the money on parties and expensive presents for his nearest and dearest. Saakshvili denies the charges, saying the funds went to attracting foreign investors to the country. Georgia’s prosecutors have started an investigation into the case.

There are several other criminal cases ongoing against Mikhail Saakashvili. He is being accused of abuse of power during the crackdown on anti-government protests in the Georgian capital Tbilisi on November 7, 2007. He was also allegedly involved in the attack on the opposition TV station Imedi, which was seized by Georgian special forces on the same day, and the appropriation of the founder’s assets.

During his term, Saakashvili personally controlled the country’s special forces. After his opponents came to power, the force was removed from the head of state’s direct command, and its documents declassified.

In February 2015, Georgia issued an extradition request for Saakashvili, but Ukraine declined it.

The Russian Foreign Ministry’s human rights representative Konstantiv Dolgov has made a sarcastic comment about Saakashvili’s new post. “Saakashvili, accused of multiple crimes against the people of Georgia, has been appointed the governor of Odessa, where neo-nazis had burned people alive and got no punishment,” Dolgov said on Twitter, referring to the May 2014 fire in which dozens opponents of the Maidan movement perished.

“This is deeply symbolic of ‘Kiev-style democracy’, which the West is still watching with shameful approval!” the Russian official added.

Saakashvili has been a long-time supporter of the current Kiev administration, ever since its heads were leaders of the Maidan movement which toppled the former Ukrainian president in the February 2014 coup. He came to Kiev to support the protesters during the rioting. Before the latest appointment, Saakashvili was Poroshenko’s advisor on reform.

In his new post, Saakashvili says he plans to turn the port city of Odessa into “the capital of the Black Sea.” In an address following his nomination, he said: “It is very important for me to start, because this is going to be a very long process,” adding, “it needs serious change… to bring many more tourists and investors to Odessa and turn it into a real world wonder.”

May 30, 2015 Posted by | Corruption | , , | Leave a comment

Corporate Welfare Fails to Deliver the Jobs

The Sad Case of Start-Up NY

By Lawrence S. Wittner | May 28, 2015

For several decades, state and local governments have been showering private businesses with tax breaks and direct subsidies based on the theory that this practice fosters economic development and, therefore, job growth. But does it? New York State’s experience indicates that, when it comes to producing jobs, corporate welfare programs are a bad investment. This should be instructive to state and local officials across the US.

In May 2013, New York Governor Andrew Cuomo, with enormous fanfare, launched a campaign to establish Tax-Free NY — a scheme providing tax-free status for ten years to companies that moved onto or near the state’s public college and university campuses. According to Cuomo, this would “supercharge” the state’s economy and bring job creation efforts to an unprecedented level. It was “a game-changing initiative,” the governor insisted, and — despite criticism from educators, unions, and some conservatives — local officials fell into line. Reluctant to oppose this widely-touted jobs creation measure, the state legislature established the program — renamed Start-Up NY and including some private college campuses — that June.

After that, Start-Up NY moved into high gear. A total of 356 tax-free zones were established at 62 New York colleges and universities, with numerous administrators hired to oversee the development of the new commercial programs on their campuses. New York State spent $47 million in 2014 — and might have spent as much as $150 million over the years — advertising Start-Up NY in all 50 states of the nation, with ads focused on the theme: “New York Open for Business.” Nancy Zimpher, the chancellor of the State University of New York, crowed: “Nowhere in the country do new businesses and entrepreneurs stand to benefit more by partnering with higher education than in New York State, thanks to the widespread success of Governor Cuomo’s Start-Up NY program. With interest and investment coming in from around the globe and new jobs being created in every region, Start-Up NY has provided a spark for our economy and for SUNY.” This was, she declared, a “transformative initiative.”

But how “transformative” has Start-Up NY been? According to the Empire State Development Corporation, the government entity that oversees more than 50 of the state’s economic development programs, during all of 2014 Start-Up NY generated a grand total of 76 jobs. Moreover, the vast majority of the 30 companies operating under the program had simply shifted their operations from one region of the state to another. The New York Times reported that, of the businesses up and running under Start-Up NY, just four came from out of state. Indeed, in some cases, the “new” businesses had not even crossed county lines. One company moved one mile to qualify for the tax-free program. Furthermore, when it came to business investment, there was a substantial gap between promises and implementation. As the Empire State Development Corporation noted, companies promised $91 million in investments over a five year period, but only invested $1.7 million of that in 2014. Thus, not surprisingly, during 2014 the companies operating under Start-Up NY created only 4 percent of the new jobs they had promised.

Actually, Start-Up NY’s dismal record is not much worse than that of New York’s other economic development programs. According to a December 2013 study by the Alliance for a Greater New York, the state spends approximately $7 billion every year on subsidies to businesses, including “tax exemptions, tax credits, grants, tax-exempt bonds, and discounted land to corporations, ostensibly in the name of job creation, economic growth, and improved quality of life for all New Yorkers.” But 33 percent of spending by the state’s Industrial Development Agencies resulted in no job promises, no job creation, or a loss of jobs. In fact, “with little accountability, businesses often take the money and run.”

A recent report by state comptroller Thomas DiNapoli reached similar conclusions. According to DiNapoli, in 2014 the programs overseen by the Empire State Development Corporation cost the state $1.3 billion (not including the voluminous tax breaks granted to companies) and helped create or retain only 14,779 jobs — at a cost to taxpayers of $87,962 per job. The comptroller’s scathing report concluded that there was no attempt by the state agency to ascertain whether its programs “have succeeded or failed at creating good jobs for New Yorkers or whether its investments are reasonable.”

Of course, instead of shoveling billions of dollars into the coffers of private, profit-making companies, New York could invest its public resources in worthwhile ventures that generate large numbers of jobs — for example, in public education. In 2011, as a consequence of severe cutbacks in state funding of New York’s public schools and a new state law that capped local property tax growth — two measures demanded by Governor Cuomo — 7,000 teachers were laid off and another 4,000 teacher positions went unfilled. Overall, 80 percent of school districts reported cutting teaching positions. Today, with New York’s schools severely underfunded — more than half of them receiving less state aid now than they did in 2008-2009 — this pattern of eliminating teachers and closing down educational opportunities for children has continued. But what if the billions of dollars squandered on subsidizing private businesses in the forlorn hope that they will hire workers were spent, instead, on putting thousands of teachers back to work? Wouldn’t this policy also create a better educated workforce that would be more likely to secure employment? And wouldn’t this shift in investment have the added advantage of creating a more knowledgeable public, better able to understand the world and partake in the full richness of civilization?

It’s a shame that many state and local government officials have such a limited, business-oriented mentality that they cannot imagine an alternative to corporate welfare.

~~~~~~~~~~~~~~~~~~

Lawrence S. Wittner is Professor of History emeritus at SUNY/Albany and is syndicated by PeaceVoice. His latest book is a satirical novel about university corporatization and rebellion, What’s Going On at UAardvark?

May 28, 2015 Posted by | Corruption, Economics | , , | Leave a comment

US senator to FIFA: Do not reward Russia with 2018 World Cup

Press TV – May 28, 2015

A US senator has called on FIFA not to allow Russia to host the 2018 World Cup following the corruption scandal in the soccer’s world governing body.

“I applaud today’s actions and am especially pleased that Swiss and US authorities are investigating FIFA’s granting of the World Cup to Russia in 2018 and Qatar in 2022,” Senator Robert Menendez said.

“I have long been concerned about FIFA’s selection of Russia and today’s announcement only underscores the need for FIFA to elect a president who will not only uphold FIFA’s values, but will ensure FIFA does not reward countries that do not uphold these values as well,” he was quoted as saying by The Hill.

On Wednesday, police in Switzerland complied with a US request arrested nine top FIFA officials to investigate decades of alleged bribe-taking and backroom deals.

The US Justice Department brought an indictment against nine FIFA officials and five corporate executives on charges including racketeering, wire fraud and money laundering.

According to the indictment, $150 million were paid in “bribes and kickbacks” to obtain media and marketing rights to international tournaments.

Meanwhile, the Russian Foreign Ministry condemned the US for overstepping its legal authority by helping Swiss law enforcement on the case.

In an interview with TIME, Kirill Kabanov, who monitors corruption in Russia as a member of the Kremlin’s council on civil society, blasted Washington’s policies against Moscow.

“There are clearly forces in America that are trying to turn anything positive that we have into a new channel of confrontation,” Kabanov said on Wednesday.

“And even if there was bribery going on, why would the Americans only bring it up now, just after FIFA refused the demands of senators to revoke Russia’s right to host the champions?”

In a letter to the FIFA last month, 13 American senators asked FIFA President Sepp Blatter to take the next World Cup away from Russia.

Russian President Vladimir Putin has been overseeing the preparations of the next World Cup that will be held in Russia in 2018.

May 28, 2015 Posted by | Corruption | , , | Leave a comment

Corporations shell out $1.2mn in Senate contributions to fast-track TPP

RT | May 28, 2015

Records from the Federal Election Commission show corporations have been donating tens of thousands of dollars to Senate campaign coffers, particularly to lawmakers who were undecided over a controversial trade deal involving Pacific Rim countries.

Using data from the Federal Election Commission, the Guardian studied donations from the corporate members of the US Business Coalition for TPP – the Trans-Pacific Partnership – to US Senate campaigns between January and March 2015, when debate over the trade deal was ramping up.

What the documents showed was that out of a total of nearly $1.2 million given, an average of $17,000 was donated to each of the 65 “yes” votes. Republicans received an average of $19,000 and Democrats received $9,700.

“It’s a rare thing for members of Congress to go against the money these days,” Mansur Gidfar, spokesman for the anti-corruption group Represent.Us, told the Guardian. “They know exactly which special interests they need to keep happy if they want to fund their re-election campaigns or secure a future job as a lobbyist.”

Fast-tracking the TPP means voting to allow President Barack Obama to negotiate a deal without permitting Congress to amend the final document. The Senate first voted to debate Trade Promotion Authority – the fast-track bill – by a 65-33 margin on May 14. On May 21, lawmakers voted 62-37 to bring the debate on TPA to a close and pass the bill.

Little is known about the specifics of the trade deal. According to a draft document leaked by WikiLeaks, the pact would grant broad powers to multinational companies operating in North America, South America and Asia, such as the ability to challenge regulations, rules, government actions and court rulings – federal, state or local – before tribunals organized under the World Bank or the United Nations.

Besides the United States, the accord would include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Most business interests support the Pacific Rim deal while labor groups have said it will cost American jobs and suppress wages.

Just two days before the fast-track vote, when Obama’s trade deal lacked a filibuster-proof majority, six out of eight Democrats who were on the fence decided to vote in favor of fast-track. Senators Michael Bennett (Colorado), Patty Murray (Washington) and Ron Wyden (Oregon) all received contributions totaling $105,900 combined. Bennett alone received $53,700.

The other Democrats who voted in favor were Dianne Feinstein (California), Claire McCaskill (Missouri) and Bill Nelson (Florida), though it’s unclear if they received contributions.

“How can we expect politicians who routinely receive campaign money, lucrative job offers, and lavish gifts from special interests to make impartial decisions that directly affect those same special interests?” Gidfar told the Guardian. “As long as this kind of transparently corrupt behavior remains legal, we won’t have a government that truly represents the people.”

In comparison, almost 100 percent of Senate Republicans voted for fast-tracking the TPP, with “no” votes from Louisiana and Alaska. Seven of those Republicans are running for re-election in 2016 and received contributions to their campaigns – Senators Johnny Isakson (Georgia), Roy Blunt (Missouri) John McCain (Arizona), Richard Burr (NC), Chuck Grassley (Iowa) and Tim Scott (SC).

According to the Federal Election Commission documents, most of the donations came from corporations like Goldman Sachs, Pfizer and Procter & Gamble.

Read more: EU drops controls on dangerous chemicals after TTIP pressure from US – report

May 28, 2015 Posted by | Corruption, Economics, Progressive Hypocrite | , , , , , , , | Leave a comment

Arrests by US as FIFA mulls giving Israel boot

By Jonathon Cook | The Blog from Nazareth | May 27, 2015

FIFA, world football’s governing body, is due to meet this Friday in Zurich to decide whether to back a Palestinian motion to suspend Israel for its systematic violations of Palestinian footballers’ rights in the occupied territories, including preventing practice sessions and games, arresting players, denying entry to other teams, and bombing grounds, as well as for endemic racism towards non-Jewish players in Israeli football itself. I have written about this in the past: here and here.

Although a 75% majority is needed for the Palestinian motion to carry, there has been a growing sense that the mood at FIFA is shifting the Palestinians’ way. Israel and the US are, of course, deeply worried. Such a move would have strong overtones of the sports boycott against South Africa and further reinforce the idea that the description of Israel as an apartheid state holds. It would also disrupt FIFA tournaments Israel is due to host in the coming months, causing great embarrassment to Israel and FIFA’s president, Sepp Blatter.

Meanwhile, almost everyone quietly acknowledges that FIFA is corrupt from head to toe, and has been for as long as the game has been another branch of the big-business entertainments industry. Just think how impossible it would have been for a body not profoundly infected with corrupt practices to have backed desert emirate Qatar’s bid to host the 2022 tournament – in the middle of its stifling summer.

Today, however, the US decided it was time to call a halt to FIFA’s corruption. It ordered the high-profile arrest and extradition of six senior FIFA officials on corruption charges dating back to the early 1990s. The operation at the FIFA officials’ Zurich hotel, as they waited for Friday’s vote, was covered in detail by leading US media organisations after they were tipped off beforehand. Apparently it has taken the US the best part of 20 years to get round to doing the paperwork to make the arrests.

Doubtless, none of this was designed to have – or will have – the slightest effect on FIFA officials as they contemplate whether to infuriate Israel and the US by booting Israel out of world soccer.

In the meantime, you can try to shore up FIFA’s resolve by signing a petition here.

www.haaretz.com/news/world/1.658271

UPDATE:

Anyone who doubts how seriously Israel is taking the threat of being ousted from FIFA and how actively its supporters are working behind the scenes at the world body should read the comments of Avi Luzon, Israel’s representative to UEFA, European football’s governing body. Ominously, he says UEFA’s support for Israel is sown up and suggests that UEFA will prevent Israel’s suspension whatever the outcome of the vote.

I’ve said it before and I’ll say it again: UEFA will not let Israel be harmed, especially as there is no reason for it. An agreement has been reached on a four-point draft that is acceptable to [Israeli PM Benjamin] Netanyahu, [UEFA president Michel] Platini, [FIFA president Sepp] Blatter and now [Palestinian soccer chief] Jibril Rajoub.

In the worst case scenario, if the Palestinians do not agree to pull the proposal and the congress is held as planned, UEFA will prevent the suspension of Israel in a very clear way. From the conversations with important people, face to face here in Warsaw, I can say without a doubt that concern over Israel’s suspension through a vote will not happen.

www.haaretz.com/life/sports/1.658317

May 28, 2015 Posted by | Corruption, Ethnic Cleansing, Racism, Zionism, Solidarity and Activism, Wars for Israel | , , , , , | Leave a comment

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