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Why did Obama and Cameron save a Criminal Enterprise like HSBC?

By William K. Black | New Economic Perspectives | December 13, 2012

Why is HSBC still in operation?  On the same day (December 10, 2012) that the Obama administration leaked the story of the HSBC settlement a story ran in the New York Times that was full of self-praise by the Obama and Cameron (U.K.) governments for their “cooperative approach” to cracking down on systemically dangerous institutions (SDIs).  SDIs are treated as “too big to fail” because they pose a global systemic risk when they fail.  The HSBC settlement puts the lie to the Obama/Cameron crack-down on the SDIs for it revealed a disgrace – Obama and Cameron treat the SDIs as too big to prosecute.  Indeed, HSBC demonstrates that the SDIs’ senior officers are treated by Obama and Cameron as too elite to prosecute.   The propaganda meme of the NYT story – that the SDIs would never again be given special favors due to reforms being adopted by Obama and Cameron – lasted four hours before it was destroyed by the disgraceful reality of the Obama and Cameron governments’ refusal to prosecute HSBC and its officers for their tens of thousands of felonies.

The NYT article begins by accepting the Obama/Cameron framing of the SDI issue, without any critical analysis.  “It is one of the thorniest problems hanging over the financial system: how should authorities deal with the collapse of a sprawling global bank to protect the financial system at large?”  The reporter’s implicit assumption is that we must have banks that are systemically dangerous when they fail.

This example exemplifies why implicit assumptions are so dangerous.  They exclude far better alternatives or terrible risks from even being considered – and they do so unknowingly.  If the reporter had made the assumption explicitly he would have been forced to defend it with analytics.  The article acknowledges that SDIs drove the financial crisis that caused the Great Recession.  In the U.S. alone this caused over a $15 trillion loss in wealth and led to the loss, or prevented the creation, of over 10 million jobs.  According to the Bush and Obama administrations we were lucky in preventing the crisis from growing vastly larger.  SDIs are economic weapons of mass destruction – but they cause their primary destruction inside the nation in which they reside.

Why allow a weapon of mass destruction that primarily destroys your own nation?  That is an act of insanity.  The City of London cannot credibly threaten the United States by creating SDIs and threatening to destroy the UK’s economy.  The proponents of SDIs bear an enormous burden of persuasion to prove why we shouldn’t end the catastrophic danger they pose by shrinking them to the point where they are no longer potential weapons of mass economic destruction.  Their burden is even greater when one considers the dominant view of economists that the smaller banks would be more efficient than the SDIs, which are massively too large to manage.  The NYT reporter does not even attempt to meet that burden.  The reporter also presents no indication that the U.S. and U.K. regulators even considered ending our exposure to these weapons of mass economic destruction.

The article acknowledges that trying to prevent an SDI from causing a systemic, global financial crisis once it fails is likely to fail.  First, the regulators are not at all sure that they can prevent a systemic crisis with their “cooperative” proposals.  Second, few regulators would risk a global systemic crisis when the alternative of bailing out the failing SDI inherently exists.  Regulators have seen the disastrous results of failing to bail out Lehman.

The obvious alternative (to everyone except the reporter, the U.S. and U.K. regulators, and the Obama and Cameron governments who have implicitly assumed it out of existence) is to shrink the SDIs to the point that they no longer pose a systemic risk and to conduct the shrinkage now before they fail.  That alternative would vastly reduce the economic WMD and make the banks more efficient – a win-win solution.

The further good news is that those two “wins” are not the limits of the advantages of shrinking the SDIs before they fail.  The NYT article, implicitly, assumes the Obama/Cameron framing of another issue critical to determining the SDI policies we should adopt.  “‘Too big to fail’ is the label for the problem that confronts governments when a large bank is on its last legs.”  The implicit assumption is that SDIs pose a “problem” only when they are on their “last legs.”  Had the reporter made this assumption explicitly he would have recognized it is unsupportable. Beyond their inefficiency, SDIs pose grave risks to a nation when they are profitable and growing.  SDIs make “free markets”, integrity, and justice impossible to maintain, they create the perverse political power that produces crony capitalism, and they drive the “competition to laxity” that drives regulatory failure.  I have explained most of these points in prior writings, so I will summarize.

Guaranteed to Loot: The Perverse Incentives of Systemically Dangerous Institutions’ CEOs.

SDIs’ uninsured, general creditors get bailed out even though the contractual deal they agree to would normally cause them to suffer severe losses.  The result is that they can borrow significantly more cheaply from general creditors than can their smaller rivals.  SDIs that are insured banks receive an explicit governmental subsidy (deposit insurance), but the implicit federal subsidy to general creditors is far larger and is unique to SDIs.  The very conservative economists who authored the book Guaranteed to Fail (2011) describe the implicit subsidy as being so large that it is the metaphorical equivalent of “bringing a gun to a knife fight.”  They conclude that the subsidies are so large that they inherently create “a highly distorted market.”  Indeed, they argue that the SDIs that created the mortgage crisis so distorted the market that there was “nothing free” about the mortgage markets.  The authors also explain the SDIs’ immense political power and their ability to corrupt regulators and regulation.

The HSBC case illustrates why SDIs destroy integrity and justice.  Public reports of the results of the government investigations of HSBC describe a bank that has been a criminal enterprise for at least 15 years.  The current settlement addresses only three of the many scandals HSBC has committed over that time period.  HSBC is a recidivist of epic proportions, but the Obama and Cameron governments have failed to prosecute HSBC or any of its officers.  When powerful corporations and their controlling officers grow wealthy through massive frauds and do so with impunity from criminal sanction integrity and justice are eaten away.  Effective financial regulation, supervision, and prosecutions are essential to “free” financial markets.  When cheaters prosper honest firms are driven from the markets, a point that the Nobel Laureate George Akerlof explained in his famous 1970 article on markets for “lemons.”  He described a “Gresham’s” dynamic in which bad ethics drove good ethics from the marketplace.

“[D]ishonest dealings tend to drive honest dealings out of the market. The cost of dishonesty, therefore, lies not only in the amount by which the purchaser is cheated; the cost also must include the loss incurred from driving legitimate business out of existence.”

Fraud and the destruction of integrity among SDIs will tend to spread to their market rivals due to this Gresham’s dynamic.  The result is another form of systemic risk.

The Justice Department, HSBC’s regulators, and the Obama and Cameron governments had the perfect opportunity to break this Gresham’s dynamic and restore justice and integrity by prosecuting and taking vigorous regulatory steps that forced HSBC to shrink over the next five years to the point that it was no longer an SDI.  They could have done so at a time when HSBC was reporting very high profits rather than during a crisis.  It was their paramount role and duty as prosecutors and regulators to break the Gresham’s dynamic by restoring the rule of law.  Doing so would have been good for the markets, for increased competition, for bank efficiency, for the independence of the regulators and prosecutors, for safety and soundness, and for our democracy.  Instead, they made the Gresham’s dynamic far worse, shamed their institutions and professions, and betrayed their duty to the nation and citizenry.

But things are likely far worse than this description suggests, for the pathetic truth is that there is no indication that the regulators, prosecutors, or government leaders considered doing the right thing at HSBC.  That is how destructive making implicit assumptions and adopting the pro-crony framing of issues is in the real world.  I hope I am wrong and that an insider will resign in disgust and disclose how she fought to shrink HSBC but was overruled by her superiors.

December 14, 2012 Posted by | Corruption, Economics, Progressive Hypocrite, Timeless or most popular | , , | Leave a comment

Obama Justice Department Set to Overrule any State that Legalizes Marijuana

By Noel Brinkerhoff | AllGov | October 24, 2012

Depending on the outcome of initiatives in three states, a confrontation awaits between the U.S. Department of Justice and advocates for legalizing marijuana.

On November 6, voters in Colorado, Washington and Oregon will decide whether to legalize and tax marijuana sales. If one or more of the measures passes, and President Barack Obama is reelected, expect the Justice Department to take action to stop any state from decriminalizing the popular herb.

In an outtake in a recent interview with “60 Minutes,” Deputy Attorney General James Cole proclaimed that the federal government is prepared to stop any “dangers” associated with state-sanctioned recreational pot.

“We’re going to take a look at whether or not there are dangers to the community from the sale of marijuana and we’re going to go after those dangers,” Cole told the television news magazine.

A crackdown on drug legalization would follow other efforts by the Obama administration to shutdown medical marijuana dispensaries operating within state law in California and elsewhere.

If Mitt Romney wins the presidential election, he would probably take the same position as Obama, having stated that marijuana is a “gateway drug” and that he would fight legalization “tooth and nail.”

To Learn More:

Justice Department Official: State Votes on Legalizing Marijuana Has No Effect on Federal Enforcement Plans (by Alex Dobuzinskis, Reuters)

Oakland Sues Obama Administration over Loss of Tax Revenue Due to Medical Marijuana Crackdown(by Noel Brinkerhoff and David Wallechinsky, AllGov)

Obama Administration Steps Up Attack on Legal Marijuana with Threat to Growers (by Noel Brinkerhoff, AllGov)

October 25, 2012 Posted by | Civil Liberties, Corruption, Progressive Hypocrite | , , , , , | Leave a comment

After First Drug Injures Patients Shameless Drug Company Pursues Follow-up Drug

By Martha Rosenberg | Dissident Voice | October 22nd, 2012

The year 1999 was a good one for the drug company Merck. In its 64 page annual report, it predicted that the arthritis medicine Vioxx (“Our Biggest, Fastest, and Best Launch Ever!”) would also prevent Alzheimer’s disease and colon cancer. It announced it was seeking approval to market the asthma drug Singulair to two-year-olds. And it forecast that 40 million women would take its new osteoporosis drug, Fosamax, as Merck continued to “help educate both doctors and patients” about the bone disease.

It turned out Merck spoke too soon. Vioxx was withdrawn in 2004 for doubling stroke and heart attacks in long-term users; Singulair now carries FDA warnings about “neuropsychiatric events” and Fosamax is suspected of doubling the risk of esophageal cancer, causing bone fractures instead of preventing them and causing heart problems, intractable pain and jawbone death. Oops!

There’s plenty of ka-ching in selling “strong bones” products for the same reason there was plenty of ka-ching in selling “hormone replacement” products: one-half the population is female, and no one wants to look old. Of course, “avoiding hot flashes” really means “still looking hot” in hormone marketing terminology, and “avoiding fractures” really means “still looking hot” in bone product marketing lingo. That’s why attractive women like Meredith Vieira from the Today show and former Charlie’s Angel Cheryl Ladd and actress Sally Field push bone drugs, just as model Lauren Hutton pushed hormone replacement therapy.

To cash in on Fosamax, the first in the bisphosphonate bone drug class, Merck decided to market the dangers of osteoporosis “far beyond ailing old ladies.” It hired researcher Jeremy Allen to whip up fears of “osteopenia,” the risk of osteoporosis, as a health epidemic to sell bone drugs and planted bone scan machines in medical offices across the country, says National Public Radio. Allen created the faux “Bone Measurement Institute” which also maneuvered Medicare reimbursement for the scans. By 1999, there were 10,000 bone scan machines in medical offices, said the Associated Press, when there had been only 750 before Fosamax.

Like its trouble-laden drug Vioxx, Merck’s Fosamax flew out of the FDA. It received only a six month review before its 1995 FDA approval. (The government also helped its promotion with the HHS secretary herself, Donna Shalala, participating in a 1998 rally kicking off free bone density screenings to be offered in 100 cities.)

But the wheels soon came flying off the bone drug. Patients experienced esophageal “irritation”  and the warning to stay upright for one full hour after taking Fosamax, eating or drinking nothing was added after approval. One woman who took Fosamax but remained upright for only 30 minutes, not 60, had to be admitted to the Mayo Clinic with “severe ulcerative esophagitis affecting the entire length of the esophagus” and had to be fed intravenously, according to the New England Journal of Medicine.

Next, dentists and oral surgeons discovered after simple tooth extractions and other in-office dental work, the jawbone tissue of patients on bisphosphonates would sometimes not heal but become necrotic and die — a condition called osteonecrosis of the jaw(ONJ), The necrotic condition did not take long to manifest “even short-term oral use of alendronate [Fosamax] led to ONJ in a subset of patients” — wrote a dental journal, but it somehow slipped through Fosamax’s two, three-year clinical trials on which its FDA approval was based. Doctors, dentists, and pharmacists were enraged at what looked like deliberate obfuscation by Merck.

And there were second, third and fourth opinions about Fosamax! According to an FDA epidemiologist writing in New England Journal of Medicine in 2009 there were 23 incidences of Fosamax-associated esophageal cancer in the US and eight deaths and 27 incidences of cancer in Europe and Japan and six deaths.

Next reports in medical journals linked bisphosphonates to the risk of developing atrial fibrillation, or a chronically irregular heartbeat and to severe bone, joint or muscle pain. “In the most serious cases, the pain was so severe that patients could not continue their normal activities,” wrote the FDA in a press release. “Some patients have complete relief of symptoms after they stop taking the drug, while others have reported slow or incomplete resolution.” Clearly, the FDA was trying hard to avoid the word irreversible.

Finally, in a development that suggests tremendous medical ineptitude if not duplicity, bisphosphonates were found to sometimes cause the very fractures they were supposed to prevent. The thigh bones of patients on bisphosphonates have “simply snapped while they were walking or standing,” after “weeks or months of unexplained aching,” reported the New York Times in an article called “Drugs to Build Bones May Weaken Them.”

It should be embarrassing to the medical establishment that a prominent drug company and the FDA “discovered” severe side effects after years of patient use and that bone scans are still merchandised though they are of no value to 90 percent of women, according to the New England Journal of Medicine. It should be further embarrassing that Merck was allowed to make $3 billion a year off a drug that many say would not have been approved had clinical trials lasted longer. Its patent expired in 2008.

Now Merck is about to launch a new drug for osteoporosis called odanacatib which has already intrigued the money men on Wall Street. “Odanacatib may be a viable alternative for patients who need continued therapy and who want benefits beyond what they received from bisphosphonates,” a senior Merck research executive told Reuters without a hint of irony.

Martha Rosenberg is a columnist/cartoonist who writes about public health. Her first book, titled Born with a Junk Food Deficiency: How Flaks, Quacks and Hacks Pimp the Public Health, has just been released by Prometheus Books. She can be reached at: martharosenberg@sbcglobal.net.

October 22, 2012 Posted by | Corruption, Deception, Science and Pseudo-Science, Timeless or most popular | , , , , , , | Leave a comment

Zionist Jews biggest donors to presidential bids of Obama, Romney

Press TV – October 20, 2012

Zionist Jews are the biggest donors that finance the US presidential election campaign of both the Democratic President Barack Obama as well as his Republican challenger, Mitt Romney.

The leading declared financier of US election campaigns in 2012 is casino tycoon Sheldon Adelson, who has so far donated $34.2 million to Republican Political Action Committees that support Romney’s publicity bid to win enough votes to move to the White House, the Associated Press reported Friday.

A staunch supporter of Israel, says the report, “he also is a contributor to the Republican Jewish Coalition, which spent $920,000 since 2002 backing bills aimed at pressuring Iran and enhancing US security cooperation with Israel.”

In Israel, meanwhile, Adelson owns the widely circulated, pro-Benjamin Netanyahu free daily paper Israel Hayom.

Worth an estimated $25 billion, Adelson oversees the Las Vegas Sands Corp., which runs casino and resort interests in Las Vegas, Singapore, and Pennsylvania, and Sands China Ltd., a bunch of casinos operating in China’s Macau territory.

According to the report, the wealthy Jewish donors and others are financing this year’s US presidential election, on track to cost a whopping $2 billion, with funding of individual Democratic and Republican campaigns as well as independent, “super” political action committees working on the campaigns’ behalf.

In exchange for their financial support, these pro-Israeli donors can gain major influence, says the report. They are often invited to state dinners at the White House and other events with the US president.

These financiers may also be consulted on policy making, particularly if it impacts their financial interests. And the ranks of ambassadors, advisory panels, and other government jobs traditionally are filled with those who have made generous donations during the election campaign, the report adds.

The largest donor to Democratic Political Action Committees that support Obama’s reelection campaign is Hollywood film producer Jeffrey Katzenberg, who has so far given nearly $2.6 million for the cause.

Other major Jewish donors that support Democratic organizations and Obama’s reelection bid are: Irwin Jacobs, founder and ex-chairman of Qualcomm, contributing $2.122 million so far; Fred Eychaner, founder of newspaper publisher Newsweb Corp, contributing $2.07 million so far; Jon Stryker, a Michigan Philanthropist, contributing $2.07 so far; and Steve Mostyn, a Houston attorney, who has so far contributed just over $2 million.

Other big Jewish donors that gave huge sums of money to Republican organization and Mitt Romney’s election campaign are: Bob Perry, a Houston real estate tycoon who has so far given $17.3 million; Harold Simmons, owner of a Dallas-based Contran Corp. who has so far given $16.5 million; Robert Rowling, head of Dallas-based TRT Holdings who has so far donated $4.1 million, and Industrialist William Koch, so far donating $4 million.

October 20, 2012 Posted by | Corruption, Ethnic Cleansing, Racism, Zionism, Wars for Israel | , , , , , , | Leave a comment

UK Former General Greases Skids for $1-Billion Helicopter Deal Benefiting Israel’s Elbit Systems

By Richard Silverstein | Tikun Olam | October 16, 2012

Elbit Systems is one of Israel’s largest defense contractors, something like Lockheed, General Dynamics and Boeing rolled into one.  It has its tentacles in virtually every high-tech weapons system developed by and for the IDF.  Like its American counterparts, it also has an extensive overseas customer base to whom it exports those weapons it’s developed for the IDF.

The Times of London has just broken a massive story detailing a secret lobbying campaign that brought Elbit a large share of a $1-billion helicopter contract awarded by the House of Commons.  The campaign was orchestrated by Lt. Gen. Richard Applegate, former chief of army procurement.  The details are so jaw-dropping, I’ll quote extensively from the article:

He boasted how he had pulled off a coup in a covert political lobbying campaign which had secured 500m for the benefit of his Israeli arms company client.

Applegate…admitted he had applied pressure by “infecting the system at every level” using politicians and former colleagues still serving in the forces.

…He…confided that he had persuaded MPs to ask questions in the Commons and arranged for the chairman of the defence select committee to raise the issue with the defense secretary in a move to shame the government into releasing the funds.

Applegate was pushing for an increase in MoD spending on helicopter safety systems, believing it would benefit Elbit Systems, the Israeli arms company he chairs in the UK.

The MoD earmarked 500m in June after months of lobbying by Applegate.  He said he expected a substantial portion of the cash to trickle down to Elbit through the military supply chain.

Boasting about his success…he said: “There was no programme, there was no money and we had been sidelined.  There is now a programme, there is now money and we have the ability to win and grow.”

He confided that he used Westminster Connection, a discreet lobbying firm with Israeli links as a “firebreak” to ensure “that my fingerprints weren’t over any of it.”  It could gain access to anyone “from the prime minister down.”  He said the firm, based in Victoria and co-owned by Scott Hamilton, a former Conservative staffer, had used links with Conservative Friends of Israel (CFI) to persuade MPs in the Commons to assist in his campaign.

The lobbying firm mentioned is co-owned by two leading Conservative staffers, one of whom, Stuart Polak, has been the director of CFI since 1989.  The Jewish Chronicle lists him as one of the top 100 most influential Jews in the UK.  He has led more than 50 such missions to Israel as the two mentioned in the passage above.  So we can see that these junkets not only bring political benefit to Israel and its UK agenda, but they also can bring huge financial and trade benefits as well.

The Times expose notes that two well-connected MPs carried water for the project, asking pointed questions on the floor and in committee.  These members of parliament were sent to Israel by CFI on two separate junkets during which they visited the Elbit headquarters and were briefed on its UK projects.

I hate to say it but Applegate’s full court press makes Aipac look like pikers by comparison:

The former procurement chief claimed his lobbying campaigns operate “at every level,” so by the time he had inspired a minister to ask his advisers about an issue they [the adviser] had been prepped to give the right answer.  “I like the minister to be asking the questions [of] the person down here who’s his expert.  The expert knows about it, is comfortable with it and you know in terms of, if he doesn’t like it, you make sure he’s no longer the expert…and you position someone else in there to give a different story.”

The entire campaign is one of breathtaking cynicism, but also breathtaking ambition and precision.  You have to hand it to Applegate and Elbit.  They show you how a master lobbyist does his job.  In fact, when he retires Applegate should write a book about it.  It would be bound to become the lobbyists’ bible.

Unfortunately, the Times story doesn’t outline Applegate’s direct financial stake in the Elbit deal.  Given that it involved $1-billion and a substantial portion would eventually flow to the Israeli arms dealer, one has to assume that the former general would himself earn a substantial fee.  How much we don’t know.

In case anyone wonders whether such a system of legalized graft works in Israel, it certainly does.  Every retired general joins an Israeli arms or security consulting company.  Ehud Barak managed to become a millionaire several times over after he became a private citizen.  Even Meir Dagan joined two such U.S. based companies on his retirement.

Unlike the other UK generals caught in the Times sting, Applegate is the only one who hasn’t lost his job.  That’s because he was the only one working for an Israeli firm.   The others made the mistake of working for UK defense contractors who have to consider the appearance of matters described in the expose.  Elbit has no such compunctions.  You’ll never hear about the wheeling and dealing it engages in around the world because such shenanigans are accepted and even embraced in the security Wild West that Israel has become.

October 16, 2012 Posted by | Corruption | , , , , , | Leave a comment

Nobel Committee does it again

By Gunnar Westberg | International Physicians for the Prevention of Nuclear War | October 12, 2012

They did it again.

The Nobel Peace Prize to the European Union.

The Norwegian Nobel Prize committee has again decided to award the Nobel Peace Prize award to a recipient with the intention to encourage the awardee to work for peace, rather than to reward an accomplishment.

The European Union was by its founders seen as a peace organization, but has since done little to promote peace or to achieve disarmament. Most important, the EU has not at all worked to diminish the greatest threat to mankind: nuclear war. Two of the dominant members of the EU are nuclear weapon states, which have shown no intention to work to prevent a nuclear Armageddon. The EU has rather discouraged work by its member states against nuclear weapons. The two European countries who have been most active for nuclear abolition, Switzerland and Norway, are not members of the EU.

The Nobel Peace Prize committee members are appointed by the Norwegian Parliament. The Parliament has chosen to appoint mostly politicians. Maybe that is the reason the members keep rewarding politicians and political organisations. There should be members from peace research institutes, peace organisations, and respected non-political members of the community.

The European Union does not meet the requirements of a Nobel Peace laureate, according to the testament of Alfred Nobel, the one who shall have done the most or the best work for brotherhood between peoples, for the abolition or reduction of standing armies, and for the promotion of peace congresses.

October 12, 2012 Posted by | Corruption, Deception, Militarism | , , , , | Leave a comment

New Georgian Leader A Man With a Past — On K Street

By Sarah Bryner | Open Secrets | October 2, 2012

bidzina ivanishvili

Georgian president Mikhail Saakashvili conceded defeat yesterday in a close contest with the Georgia Dream party, a new coalition created by billionaire businessman Bidzina Ivanishvili. Ivanishvili is now considered the likely next prime minister of Georgia.

While this result might have foreign relations consequences in the Caucuses, Ivanishvili’s win will also have surprising repercussions on Washington’s K Street.

Since late in 2011, Ivanishvili has spent $1.4 million hiring prominent D.C. lobbyists to represent him to the U.S. House, Senate, Department of State, and even the White House. Among the issues that his lobbyists report discussing? Free and fair elections in Georgia, international banking, and “facilitating communication with U.S. government officials.”

Currently ranked 153rd on Forbes’ list of billionaires, Ivanishvili accumulated his wealth buying and selling companies — primarily in the mining and banking industries — as Russia and other Soviet Bloc countries moved towards privatization. The largest was the Russian bank Rossiysky Kredit Bank. He’s used some of his reported $6.4 billion fortune to create a private zoo, buy several works of art by Pablo Picasso, and build a large glass house on the outskirts of the Georgian capital city Tiblisi, according to the Guardian.

In the lobbying world, Patton Boggs LLP has been the greatest beneficiary of Ivanishvili’s wealth, earning $760,000 from him so far this year. Thomas Hale Boggs Jr., one of the firm’s senior partners, lists Ivanishvili as one of his five clients. Former Republican Sen. Steven Symms of Idaho has also represented him.

When Ivanishvili assumes office, he will not need to sever contact with the firms he has employed this year, but they will need to change how they disclose their work. Instead of the traditional quarterly lobbying forms filed with the Senate, they’ll be required to turn in biannual Foreign Agents Registration Act (FARA) reports to the Justice Department. Federal regulations require that anyone representing a political party or government must file with the Justice Department; individuals who do not directly represent a government interest are allowed to register with the House and Senate instead.

In August, Patton Boggs, National Strategies LLC, and Downey McGrath all filed reports with the Justice Department listing Ivanishvili as a foreign agent they represent. Saakashvili, the outgoing prime minister, has also employed some help in Washington — his office recently hiredFianna Strategies to explain its policies and programs to relevant U.S. offices.

Free and fair elections are mentioned on nearly every lobbying form filed by Ivanishvili’s hired firms. But Transparency International Georgia, an NGO focused on electoral transparency, recently published a report indicating that the electoral climate in Georgia is still fraught with electoral violations. The report cites evidence of both the ruling party and Ivanishvili’s Georgian Dream Party attempting to bribe voters, as well as evidence that the ruling party had recently set up rules to unfairly benefit the party in power.

The report also mentions that a Georgian Court found Ivanishvili guilty of making illegal donations and charged him the equivalent of $89 million, an amount which was later cut in half. Ivanishvili refused to pay, and hired Georgian politician Tedo Japaridze to represent his interests before the U.S.

While it is unusual for individuals to hire lobbyists directly, it isn’t unheard of. Although Ivanishvili has spent far more than any other individual on lobbying this year, Aliya Aliyeva spent $160,000 so far this year attempting to raise awareness about Azerbaijani political prisoners Farhad and Rafiq Aliyeva. Similarly, Oleksandar Tymoshenko spent $140,000 this year advocating for the release of his wife, former Ukrainian Prime Minister Yulia Tymoshenko, from prison. Even American citizens occasionally directly hire lobbyists — former hedge fund manager Julian Robertson, the second largest individual lobbying client, has thus far spent $180,000 lobbying. Robertson is also a prominent donor to Restore our Future, a super PAC supporting GOP presidential nominee Mitt Romney.

October 3, 2012 Posted by | Corruption | , , , , , | Leave a comment

Interfaith dialogue is no answer to Israel’s racist bullying

 By Stuart Littlewood | My Catbird Seat | October 3, 2012

So the Albuquerque Episcopalians got jumpy and ‘disinvited’ the Friends of Sabeel who had booked their cathedral for a conference.

Sabeel is an international peace movement which calls itself the Voice of Palestinian Christians.

Why would one Christian group snub another? The excuse for turning away the conference was concocted by the Dean of the Cathedral, the Very Rev. J. Mark Goodman. “We said our prayers and deliberated thoughtfully and purposefully,” he explained.

It seems he and his Episcopalian colleagues didn’t like the way the conference would be dealing with “a political issue that has polarized people in ways that we felt were unhelpful. We did not want to introduce a polarized issue into the life of the Cathedral that would have the potential to divide rather than unite. Our decision was not based upon anti-Palestinian positions. In fact, many on the Vestry [i.e. the church directors] are very sympathetic to the plight of the Palestinian people, yet they were concerned about the rhetoric of the literature from Sabeel.”

He denied they were put under pressure from Zionists. Nevertheless they had invited a local rabbi to come and speak to the Vestry, a rather odd thing to do when, presumably, they were all acquainted with the endless crimes committed by the Jewish State against the Christian communities in the Holy Land. Do they usually turn to rabbis for advice?

Goodman also said Vestry members had attended his recent Forum classes, after which they had misgivings about serving as conference hosts.

“This summer at General Convention, I served on a committee that dealt in a focused way with resolutions about the conflict between Israel and Palestinians,” he went on. “It was my personal prayer that we would craft resolutions that were balanced and offered a way forward with positive engagement with each side, seeking a way forward that would bring security, dignity and peace to a region that has known strife for too long. I believe we succeeded.”

Note the reliance on “positive engagement”. What exactly does that mean – more interfaith dialogue? “We succeeded”, he says. But how does he measure success? And why is he not pressing for the enforcement of international and humanitarian law and the implementation of UN resolutions, the only route to justice? The Episcopalian approach implies that some sort of equivalence, or level playing field, already exists between the powerful aggressor and the weak victim, the robber and the robbed, the armed occupier and his unarmed dispossessed prisoner.

How did these churchmen, far removed from the rotten reality, become experts on “security, dignity and peace” in the Palestinians’ struggle for freedom? Have they been there, rolled up their sleeves and immersed themselves in the snake pit that the Holy Land has been allowed to become? What makes him and his mates think they’ve found a way forward while Palestine remains under brutal occupation?

The mission statement provided by Goodman’s church says: “The Cathedral continues to honor its responsibility to be a good steward and shepherd in the community and the world.” A huge and worthy commitment indeed. However, the cathedral’s own relatively peaceful community and inconsequential little world have been rudely rocked by scandal following claims that it was headed for bankruptcy and members were deserting. The cathedral accountant blew the whistle and allegations were made about the misuse of collection money, liberal imbibing of expensive wine and Vestry members “trashing the cathedral’s endowment by $2 million through complacency, and of not disciplining the dean”.

The regional bishop moved quickly to hush it up in an operation that local church workers said was “like a quiet version of the Spanish Inquisition”. There’s more about it here.

If only this sort of tomfoolery were all that Christian churches in the Holy Land had to worry about. Unfortunately the Episcopalians seem pretty confused, or downright ignorant, about the depths of evil to which the Israeli occupation has sunk. This is from their official report Israel-Palestine: Convention supports positive investment – Bishops agree to postpone indefinitely debate on corporate engagement ….

Bishop John Tarrant of South Dakota urged opposition to Resolution C060 [which calls on the church to engage “in corporate social responsibility by more vigorous and public corporate engagement with companies in the church’s investment portfolio that contribute to the infrastructure of the Occupation”]. He spoke about the town of Rawabi, currently under construction north of Ramallah in the West Bank, that will provide opportunities for affordable home ownership, employment and education. Tarrant said that the project, envisioned by a group of Palestinian businessmen, would inject about $80 million into the Israeli economy.

“It gave me the sense that there are Palestinians that understand the importance of mutuality if the two states are going to exist side by side,” he said.

He reminded the house of Presiding Bishop Katharine Jefferts Schori’s charge for Episcopalians ‘to go as emissaries…to go into the world of God’s dream’. “I believe there are Palestinians and Israelis now that are going into the world with God’s dream.”

Has Bishop Schori been to the world of God’s dream and seen what’s there?

And why would Bishop Tarrant want to inject all those $millions into the Israeli economy when Israel has been strangling the Palestinian economy to death, seizing its land and water and withholding Palestine’s tax revenues?

Bishop Charles Bennison of Pennsylvania said the movement to support boycotts, divestment and sanctions against Israel was unwise. “We need more, not fewer, economic ties to Israel. The more isolated Israel becomes the more dangerous the situation becomes.”

It turns out that Episcopalians are against boycott and divestment. Instead the bishops have supported a resolution on positive investment in the Palestinian Territories, as if that will do the slightest good while the illegal occupation and blockade continue. Meanwhile they agreed to postpone indefinitely the conversation on corporate engagement.

To them, it seems, going as emissaries into God’s dream involves kicking the can down the road like the rest of wretched Christendom (with a few honourable exceptions). Was anybody at the Convention truly concerned with right versus wrong, good versus evil, the rule of international law versus the rule of the gun-butt, the F-16, the helicopter gun-ship, the tank shell, illegal detention and the hard-to-get permit to go anywhere.

Their own Bishop is a victim of Israel’s apartheid policies

The Anglican Bishop in Jerusalem himself is a classic victim of the machinations of the cruel occupation. Suheil Dawani is Bishop of the Anglican Diocese of Jerusalem, which is a part of the Episcopal Church in Jerusalem and The Middle East. This covers Israel, the Palestinian territories, Jordan, Syria and Lebanon. He was installed in April 2007, but in March 2011 Israel cancelled his residency permit making it well nigh impossible for him to carry out his duties. As a non-Israeli he needs a temporary residence permit. The Israelis played fast and loose, granting a permit initially then turning him down.

Here’s the explanation. “The bishop is a native of the Holy Land and has spent most of his life and ministry there, but cannot obtain either citizenship or legal residence in Israel, since he was born in Nablus, in the West Bank, which has been under Israeli occupation since 1967, but has not been annexed to Israel. East Jerusalem, on the other hand, where the Anglican Cathedral and Diocesan offices are situated, was also occupied at the same time, but Israel annexed it and considers it part of its national territory (although no other country in the world recognizes this annexation). Therefore, Bishop Dawani is considered by Israel to be a foreigner who can only visit – let alone live in – East Jerusalem with a special permit, which the Israeli authorities can either grant or deny at their sole discretion.”

Get it?

There’s a religious war going on in the Holy Land and Dawani was wide open to this sort of dirty trick. After six months of aggravation and international pressure, during which Israel’s Interior Ministry accused him of “improper” land dealings on behalf of the church and the Palestinian Authority, the illegal occupiers granted residency permits to the bishop and his family.

But here’s the catch… those permits will have to be renewed when they expire, whenever that may be or whenever the Israelis choose.

So the Israelis have the bishop’s balls in a vice. Keep quiet Dawani and all you Anglicans/Episcopalians while we carry on with our ethnic cleansing. Keep quiet while we trash the Palestinian economy, confiscate their lands and water resources, continue the blockade, erase their culture and humiliate their families, drive out the Christians and Muslims and disrupt the religious life of those who stubbornly remain.

Keep quiet or we’ll revoke your permit again.

The Catholics similarly walk on eggshells and are mercilessly bullied in their homeland. Their priests are harassed and obstructed and often prevented from going about their pastoral duties. Many are ‘imprisoned’ in their parish – if they leave it to visit relatives or holiday in another part of the Occupied Territories or in neighbouring countries like Jordan and Lebanon, the Israelis may not let them back in.

So imagine what it’s like for the Muslims.

The simple truth is that the Jewish State is the world leader in rampant lawlessness and interfaith bullying, while the wet and wimpish Anglicans respond with their clapped-out formula of interfaith dialogue and other verbal diarrhoea. For 64 years it has got us and our Palestinian brothers and sisters precisely nowhere.

The good folks of Sabeel must now be wondering what they’ve done to deserve same-faith friends like the Albuquerque Episcopalians.

Stuart Littlewood’s book Radio Free Palestine, with Foreword by Jeff Halper, can now be read on the internet by visiting www.radiofreepalestine.org.uk.

October 3, 2012 Posted by | Corruption, Ethnic Cleansing, Racism, Zionism | , , , , , | Leave a comment

Qatar invites bids to reconstruct Gaza

Ma’an – 02/10/2012

GAZA CITY – The Qatari government on Tuesday invited tenders for four construction projects, in the first stage of a $254 million project to rebuild the war-torn Gaza Strip.

Qatar’s ambassador to Gaza Muhammad al-Imadi is heading a committee overseeing the work.

Consultants have been invited to submit designs for a city to be named after Sheikh Hamad Ben Khalifa al-Thani. The $30-million development will include 1,000 residential units in five-story apartment blocks, schools, stores, clinics, parks and entertainment facilities, the ambassador said in a statement.

Companies were also invited to bid for the repair of three major roads in the enclave. The 35-kilometer coastal highway al-Rashid Street will cost around $50 million to repair, and $18 million has been allocated to reconstruct the 10-kilometer al-Karama Street.

The 28-kilometer Salah Addin Street will be repaired first, at a cost of $60 million, as the plans and designs are ready, al-Imadi said.

In the coming days, consultants will be invited to bid for several agricultural projects, budgeted at $12.5 million.

Housing projects worth $32 million will also be announced this week to house needy families and to re-home those who were evicted for building on public land.

October 2, 2012 Posted by | Corruption | , , , | Leave a comment

Police Provocateurs During Spanish Austerity Protests

Police Provocateurs being used in Spanish Austerity protests incite violence and dress like anarchists in order to facilitate the protests being shut down.

Police provocateurs were seen in the London riots, during the SPP protets in Montbello, Quebec, even during the Occupy LA protests.

Funny how the news media never seems to report on this.

More

September 29, 2012 Posted by | Corruption, Deception, Video | , , | Leave a comment