US Financial System, Tax Authorities Refuse to Police Super-Rich
Sputnik – 12.05.2016
Only a handful of wealthy Americans and institutions bother to use overseas tax havens because they know the US government and financial regulators will let them get away with illegal behavior, US analysts told Sputnik.
Mossack Fonseca was the source of 11.5 million leaked documents, referred to as the Panama Papers, identifying more than 360,000 individuals and corporations around the world, among which only 36 American entities or persons were found.
“None of the big banks or ratings agencies that were engaged in criminal behavior and so were responsible for the [2008 Wall Street financial] crash was even indicted let alone prosecuted and jailed.” scientist and political commentator John V. Walsh said.
Only one very small investor was convicted but no serious action was taken against any of the major US banks or other financial institutions involved, Walsh recalled.
Walsh concluded that the major Wall Street financial institutions that survived the 2008-9 crisis were not only too big to be allowed to fail, they were also too big to be prosecuted.
Walsh dismissed an article published in the US journal Foreign Policy arguing that the United States benefitted from vigorously enforced financial laws and regulations as “gibberish.”
He said the problem was the opposite – that financial regulations already on the books had not been effectively implemented.
Executive Intelligence Review (EIR) senior editor Jeff Steinberg said there could have been many more Americans exposed in the Panama papers but the Mossack Fonseca law firm had stopped taking on US clients after it became aware of new federal government investigations into its activities.
“The law firm policy [was] to stop taking American clients after the FBI-DOJ [Department of Justice] started probes,” Steinberg explained.
On Monday the International Consortium of Investigative Journalists (ICIJ) published a searchable database of nearly 214,000 offshore entities created in 21 jurisdictions, from Nevada to Hong Kong and the British Virgin Islands.
Parliamentary Coups: the New Strategy of Latin America’s Right
By Pablo Vivanco – teleSUR – May 12, 2016
Like Honduras and Paraguay, Brazil’s elites used the legislature against Dilma Rousseff. Is Venezuela next?
For most, the decades of the 1970’s and 1980’s are regarded as a dark period for Latin America.
The majority of South American nations were taken over by brutal military juntas, while in Central America civil wars claimed the lives of hundreds of thousands. The armed forces in the region, often trained and financed by the United States, ruled through force and where civilian governments didn’t heed their agendas, these were ignored or overthrown.
Despite entailing the onslaught of disastrous neoliberal economic policies that exacerbated poverty and inequality, the 1990’s also ushered in an end to the military dictatorships in Latin America. Elected governments returned to Chile, Argentina, Brazil, Uruguay and Paraguay, while peace accords in Guatemala and El Salvador also meant that the militaries would see a diminished role in the politics of those countries (at least in theory).
Latin America did not solve its numerous problems, but a general consensus was arrived at — no coups or military regimes should be permitted again in the region.
Of course, this consensus began to break with the resurgence of Latin America’s left, beginning with the Bolivarian movement and Hugo Chavez in Venezuela. Even though he initially harbored very modest proposals for reforms, Venezuela’s ruling class almost immediately sought to topple Chavez’s government. In April 2002 they acted as Latin American elites had done in previous decades and enlisted the upper echelons of the military to stage a coup to remove Chavez. The results were predictable — Venezuelans revolted against the coup and its leaders and the region (except for the U.S. government led by George W. Bush), rejected the move.
The lesson: military coups make for bad PR.
As the decade and Latin America’s left advanced, the regional right adopted a different strategy to counter the trend. While in many countries the left was winning presidencies, in these countries the legislative branches remained largely under the control of traditional (and generally right-wing) parties. Far from providing checks and balances on the authority of the executive branch, opposition-controlled legislatures began to be used as the instrument to overthrow elected presidents.
The first test came in 2009, when Honduran President Manuel Zelaya was removed from office after calling for a non-binding referendum on changing the country’s constitution. The Honduran Congress had voted to remove Zelaya from office, and the country’s Supreme Court — dominated by figures connected to the previous military government — ordered his arrest. The Honduran military dutifully complied with their order, kidnapping Zelaya and forcing him onto a plane to Costa Rica.
Three years later, Paraguay’s parliament impeached President Fernando Lugo, a former bishop who ended 61 years of one-party rule in the country. The charges and process against Lugo were met with skepticism in Paraguay as well as in the region, prompting Paraguay to be suspended from the Mercosur pact.
The impeachment process against the president of Latin America’s largest nation mirrors the intentions of the coups of the 70’s and 80’s and the methods of those in the last decade. Despite the absence of evidence that could justify an impeach against Dilma Rousseff, a majority of Brazilian legislators — many of whom are implicated or being investigated in a massive corruption scandal — have approved removing her from the office she was elected to. The man who will fill the seat is one of those being investigated, but he faces no repercussions from his colleagues.
In neighboring Venezuela, the opposition-led National Assembly has the same objective and has initiated the “recall” clause in the country’s constitution in an attempt to oust Nicolas Maduro from the Miraflores presidential palace.
In all of these cases, the objective is not merely power, but what power facilitates. Since 1998, numerous left-leaning governments have been elected to redistribute wealth and decision-making power. Not only has this led to inequality and poverty being slashed, but the political dynamics in those countries have shifted and the region has become more unified and independent.
The new strategy to stem the Pink Tide builds from the same objectives as those employed by the dictatorships of Pinochet, Videla and others: stop the left from being able to implement its program. But while it uses one elected institution to subvert another, it should be clear that these maneuvers are no less undemocratic than their military predecessors.
Pablo Vivanco is Director of teleSUR English.
The Dangers of Free Trade Agreements: TTIP’s Threat to Europe’s Elderly
By Michael Hudson | CounterPunch | May 11, 2016
The most obvious approach to look at how European care for the elderly will evolve is to project technological trends and the costs of people living longer as diagnostic equipment, drug treatments and other medical science continues to improve. This kind of projection shows a rising cost to society of pensions and health care, because a rising proportion of the aging population is retiring. How will economies pay for it?
I want to point to some special problems that are looming on the political front. I assume that the reason you have invited me from America is that my country has been doing just about everything wrong in its health care. Its experience may provide an object lesson for what Europe should avoid (and indeed, has avoided up to this point).
For starters, privatization is much more expensive than European-style Single Payer public health care. Monopoly prices also are higher. And of course, fraud is a problem.
America’s Obamacare and health insurance laws have been written by political lobbyists for special interests. So has the TTIP: Transatlantische Handelsabwollen. Since George W. Bush, the U.S. Government has been prohibited from bargaining for low bulk prices from the pharmaceutical companies. Most Americans think that Health Management Organizations (HMOs) are rife with corruption and billing fraud. The insurance sector has made a killing by spending a great deal of money on bureaucratic techniques to reject patients who seem likely to require expensive health care. Doctors need to hire specialists working full time just to fill out the paperwork. Error is constant, and any visit to the doctor, even for a simple annual checkup, requires many hours by most patients on the phone with their insurance company to correct over-billing.
The dream of U.S. “free market” lobbyists to shift the costs of health care onto its users instead of as a public program. According to current plans backed both by the Republicans and by much of the Democratic Party leadership, these user costs ideally would be paid by pre-saving in special “health savings” accounts, to be managed by Wall Street banks as a kind of mutual fund (with all the financial risks this entails – the same kind of risks that are troubling most U.S. pension funds today).
The reason why the U.S. discussion of health care for the elderly is so relevant for Europeans is that the Transatlantic Trade and Investment Partnership (TTIP) that President Barack Obama pushed on German Chancellor Angela Merkel two weeks ago poses a far-reaching threat to European policies.
The agreement has been drawn up in secret, and has only been available to Congressmen in a special room as a read-only copy. Not even Congressional staff have been permitted to see the details. The reason is that the terms of the TTIP are so awful that it could never be approved by voters. That is why the lobbyists for banks, insurance companies, drug companies, oil and gas companies and other special interests that wrote the law are trying to bypass democratic government and are going directly to Brussels – and in the United States to the Executive Branch of government.
The aim of the TTIP is to replace the application of national laws with special courts of referees nominated by the special interests. This includes the organization of health care. Last week Britain’s main labor union, Unite, warned that the TTIP would mean that the National Health Service would have to be wound down and privatized.[1] Although “Austria, Germany, Greece and Italy do have explicit reservations in the TTIP text to protect existing rules relating to healthcare,” the privatization lobbyist strategy is to have the treaty “provisionally applied” to force matters, by backing compliant politicians. Objections will be sidestepped as the “provisional’ law becomes a fait accompli.
I think that the best perspective that I can give you is to discuss how the various interest groups are working to shape political decisions regarding the public and private role of health care. This is an area I have been involved with for forty years. In 1976, I contributed the economic section for two reports by The Futures Group in Glastonbury, Connecticut for the National Science Foundation analyzing the economic and financial consequences of life‑extending technology: When We Live Longer: Prospects for America (with Herb Gurjuoy et al., 1977) and A Technology Assessment of Life-Extending Technologies (Vol. 5: Demography, Economics and Aging, 1977). I believe these were the first reports to pinpoint the implications for the Social Security system of an aging population and its inter-generational financial tensions.
American politicians and economic futurists were concerned with the effect on public health budgets of a rising proportion of the population able to live out the maximum present human lifespan of 125 years (called “squaring” the life expectancy curve). What is the best public response to what should be a dream being realized? More to the point, how should governments cope with special interests seeking merely to profiteer from such breakthroughs – and use their promise in an extortionate manner?
Every interest group has its own perspective. Most politicians in the United States are lawyers, and they worried that the Social Security, pension and health care contracts were a legal right that could not be broken or modified. President Eisenhower had called Social Security the “third rail” of American politics – meaning that any politician or party that sought to downgrade its promises would quickly be voted out of office.
It was obvious that a population living longer would receive more Social Security and pension payments, and that a rising proportion of national income would be spent on their health care. Some of the politicians I talked to were so pessimistic about the costs involved that one said that he was sorry that kidney dialysis procedures had been invented, because with so many people having kidney problems, it would cost a fortune to provide this service to everyone who medically needed it.
Some politicians sought ways to not to fund expensive medical technologies – on the ground that if these were developed, the government might have an obligation to supply the most expensive technologies (especially dialysis and organ transplants) to the population at large. The costs of doing this would absorb nearly all the economic growth.
One set of futures envisioned that the more costly medical treatments might become available only on islands – in the Caribbean, for instance. After all, did not Hippocrates practice on the island of Cos?
As forecast decades ago, health care is the most sharply rising cost in the United States. What none of us were cynical enough to forecast was the corrupt role played by special interests in maximizing the costs by treating each element of health care as a profit center – indeed, as an opportunity to extract monopoly rent.
Privatization of health insurance under Obamacare has been a bonanza for the financial sector and the insurance industry. Initially a Republican “free market” proposal, it required the Democratic Party in power to disable popular pressure for “Medicare for all” in the form of single payer public health care. No discussion within Congress was even permitted to favor public health care. (I was economic advisor to Presidential candidate Dennis Kucinich, whom the Democratic Party leadership blocked from even discussing a public option in the Congressional debate.)
The enormous power of lobbyists from the pharmaceutical industry bought the loyalty of politicians who blocked anti-trust laws from being applied against the drug companies. As I noted earlier, these lobbyists even succeeded in blocking the government from negotiating directly with the drug companies over prices.
I mention these points because the U.S. solution should serve as an object lesson for what European and other countries should avoid in managing their care for the elderly. This is especially important to Europe, because its neoliberal policies favoring the financial sector imply a slow economic crash squeezing household and employer budgets. Five concerns are paramount.
Triage: restricting the most expensive health care only to the wealthy
Lower incomes lead to shorter lifespans as a result of worse health, and also suicides. Marriage and birth rates also are lower as economies polarize and growth slows. Russia, Ukraine, Latvia and other post-Soviet states show this – and it may be a forecast of European experience. This raises the ratio of elderly to working-age populations. A slowly growing labor force must support more and more retirees.
Studies in almost every country have shown that health standards and lifespans are polarizing between wealthy and poor. A recent U.S. study notes: “The life-expectancy gap between rich and poor in the United States is actually accelerating. Since 2001, American men among the nation’s most affluent 5 percent have seen their lifespans increase by more than two years. American women in that bracket have registered an almost three-year extension to their life expectancy. Meanwhile, the poorest five percent of Americans have seen essentially no gains at all.”[2]
This has important implications regarding recent proposals to raise the retirement age at which people can qualify for Social Security. Only the well to do are living longer, not blue-collar labor. Raising the retirement age would deprive the latter of the retirement years that better-paid individuals enjoy as a result of their healthier lives.
I mentioned above one scenario drawn by futurists: that the best medical care might only be available in “medical islands” or their equivalent in the United States, called “Cadillac health insurance plans.”
Blaming the victims for their unhealthy environment as the problem were their “personal responsibility.”
George W. Bush recommended that the poor simply should go to hospital emergency wards when they get sick. This obviously is the most expensive approach. Prevention is by far more economical. But public moves along this line are being fought tooth and nail by the tobacco and soft-drink industries, and other purveyors of bad health.
Better health and longer lifespans are achieved not only by advanced medical technology, but by better public health standards, and personal diets and exercise. The most serious behaviors impairing health and longevity are smoking cigarettes, drinking alcohol and eating junk foods to the point of obesity. In the United States, childhood diabetes is rising sharply, especially among racial and ethnic minorities, and the poor in general.
An obvious way to keep down health expenditures is to lead a more healthy life. In New York City, Mayor Bloomberg sought to ban the sale of large sugar-drink servings. Lawyers for the junk-food industry, supported by fast food restaurants and movie theaters, blocked his initiative. And an even more powerful legal tool to block public health warnings is contained in the Trans-Pacific Trade Agreement and its European counterpart, the Transatlantic Trade and Investment Partnership. These proposed treaties follow the earlier North American Free Trade Agreement (NAFTA) in levying enormous fines on government who warn populations of the dangers of smoking or other unhealthy behavior that is highly profitable to cigarette companies, soft drink “sugar water” makers, and fast food restaurants selling food-like substances that give little nourishment. Under the proposed neoliberal agreement being put in the hands of Brussels politicians by American lobbyists, government warnings of the health hazards of smoking will require these governments to pay the tobacco companies what they would have earned if cigarette sales had not declined as a result of these warnings! Fines already have been levied against Australia for seeking to improve public health by requiring such warnings on cigarette packages. A recent Australian report concludes:
Tobacco policies implemented in the past have been effective at decreasing overall rates of smoking, but new and innovative interventions will be needed in the future to affect change in all populations.
Six chapters were identified with potential to limit governments’ ability to implement tobacco control policies. The key chapters are: investment, particularly the ISDS mechanism; rules related to trademarks in intellectual property, regulatory coherence, cross-border services and technical barriers to trade. … Multiple chapters may also interact with the potential for amplified effects on tobacco control. Various provisions in these parts of the TPP may provide the tobacco industry with greater influence over policymaking and more avenues to contest tobacco control measures, as well as preventing governments from introducing new policies.[3]
Last week the European Court of Justice upheld the 2014 Tobacco Products Directive against challenges from British-American Tobacco (BAT) and Philip Morris. Like similar laws in other countries, the European law called for public warnings on cigarette packs telling smokers that nicotine kills. But the tobacco companies vowed to fight back, and the TTIP is now their major hope.
Dangers of privatization of health law under the TTIP
A recent British article lays out the problem:
A salient goal of TTIP is to shadow the Investor-State Dispute Settlement system (ISDS), an instrument of public international law granting firms the right to raise an action in a tribunal on the basis that a state’s policies have harmed their commercial interests. … The economist Max Otte has called ISDS ‘a complete disempowerment of politics’. The tribunals are confidential, as is usual in arbitration. Negotiations over ISDS within TTIP are also secret, the aim being to get the ink dry on the agreement before it can provoke opposition by being made public. …
As the Economist put it, ‘if you wanted to convince the public that international trade agreements are a way to let multinational companies get rich at the expense of ordinary people, this is what you would do.’[4]
Dangers of financialization
The most efficient way to finance care for the elderly – and pensions – remains pay-as-you-go planning. This is becoming difficult in a neoliberal political environment with shrinking economic growth and consequent demographic shrinkage. The horror story today is a Ukraine-like situation where the labor force has fled, leaving the elderly to be supported without much of a social budget. That is becoming the post-Soviet model, from East Germany to the Baltics.
The American situation is worse, because Social Security, Medicare and pensions are front-loaded by being financialized – paid for in advance. For decades, savings have been set aside in the form of stock and bond purchases. The problem is that when more workers retire than are contributing to the pension plan or similar plans, their prices will decline. This will leave the retirement plan under-funded.
As interest rates have been reduced to nearly zero since 2008 by Quantitative Easing by the U.S. Federal Reserve and now European Central Bank, pension funds and insurance companies have become desperate to meet their statistically required targets. They have turned to gambling on complex financial derivatives – and have lost heavily, because their managers are no match for Wall Street sharpies.
It may be appropriate here to note the monetary madness of the eurozone not having a central bank to monetize budget deficits to spend into the economy to help it grow. That is the proper function of a real central bank, from the Bank of England to the U.S. Federal Reserve System. European voters are being frightened by junk economics claiming that only commercial banks should create money and credit, not central banks. The reality is that central banks can create the money to fund health programs without inflating the economy. What would inflate health care costs, especially proper care for the elderly, would be privatization and a relinquishing of health policy to the large corporations best in a position to profiteer.
Danger of trade agreements raising the cost of drugs and medical technology
The technological medical revolution involves high rent-extracting opportunities, especially in treating the elderly. The Australian study cited above notes the dangers posed by the TPP (and hence also by its European version) to public health expenditure, especially health costs for the elderly. Designed largely to protect “intellectual property rights,” the proposed treaty aims to increase monopolyrent extraction by the pharmaceutical sector.
Provisions proposed for the TPP that have the potential to limit implementation of new food labelling requirements in Australia include the ISDS mechanism; the regulatory coherence chapter and technical barriers to trade chapter. Provisions in these parts of the TPP have the potential to restrict policymakers to regulate using the most effective public health nutrition instruments. For example, the food industry could argue that introduction of mandatory front-of-pack nutrition labelling would be a technical barrier to trade. Without strong compensatory intervention to improve consumer awareness of the relative healthfulness of foods, it is likely that there will be no change to current high rates of obesity, metabolic syndrome and non-communicable diseases. This would have a negative impact on health, particularly for vulnerable populations.
For starters, the trade agreement limits the ability of public or community pharmacies to bargain for lower drug prices. Also, any attempt at anti-monopoly legislation would require governments to pay the foreign producers or investors as much money as they would have earned if no “interference with markets” (that is, regulation of monopoly prices) had existed. This would sharply increase the cost of healthcare, and “many TPP provisions proposed during the negotiations are likely to be harmful to health.”
There is sufficient evidence which show that increases in the cost of medicines lead to greater patient copayments through the PBS, and that increases in patient copayments lead to lower rates of prescription use. Changes to prescription costs impact particularly on vulnerable populations who have less capacity to accommodate increased out-of-pocket expenses such as women, elderly adults, cultural and linguistic minorities, and low-income populations; people with chronic disease; geographically remote communities; and Aboriginal and Torres Strait Islander populations.
Many provisions proposed for the TPP had the potential to increase the cost of medicines. These were identified in leaked drafts of the intellectual property chapter; the healthcare transparency annex; and the investment chapter, which includes an investor-state dispute settlement (ISDS) mechanism. These provisions, if adopted, could be expected to lead to an increase in the costs of managing the PBS by delaying the availability of generic medicines, and constraining the ability of the PBS to contain costs. An increase in the cost of the PBS to government would be likely to lead to higher copayments for patients.
Summary
European sponsors of U.S.-style neoliberalism pose a threat of transforming European politics, and with it the structure of economies and society. Enormous sums of money are being spent on public relations, and to support politicians willing to shepherd corporate monopoly power against that of democratic government and voters. The most serious threat to European health care and care for the aging population in general is pressure from U.S. firms and diplomats to ram through the TTIP.
It is much more than a free trade agreement. Its “investor dispute” mechanism threatens to disenfranchise governments. The intent is to block them from protecting Europe’s economy, population and basic social philosophy that has developed over the past century of social democracy.
That is why so many of us in the United States also are fighting against this agreement. It has been a major issue in this year’s presidential campaign. Republican nominee Donald Trump has affirmed that the public option is by far the most economic. And Democratic contender Bernie Sanders has opposed Hillary Clinton’s support for her patrons on Wall Street and in the pharmaceutical monopolies. I hope that a similar fight will be waged in Europe.
This is the text of Michael Hudson’s speech to SANICADEMIA, May 9, 2016 in Villach, Austria for the 5th International Congress on Geriatrics and Gerontology = 59th Austrian Convention for Hospital Management, “We’re Living Longer: The healthcare challenges for today and tomorrow.”
Notes.
[1] Hazel Sheffield, “TTIP could cause an NHS sell-off and UK Parliament would be powerless to stop it, says leading union,” The Independent, April 29 2016. http://www.independent.co.uk/news/business/news/ttip-could-cause-an-nhs-sell-off-and-parliament-would-be-powerless-to-stop-it-says-leading-union-a7006471.html
[2] Sam Pizzigati, “Inequality Kills: Top 1% Lives 15 Years Longer Than the Poorest,” Naked Capitalism, May 3, 2016, originally published at Other Words. http://www.nakedcapitalism.com/2016/05/inequality-kills-top-1-lives-15-years-longer-than-the-poorest.html
[3] Katherine Hirono, Fiona Haigh, Deborah Gleeson, Patrick Harris, Anne Marie Thow and Sharon Frie, “Is health impact assessment useful in the context of trade negotiations? A case study of the Trans Pacific Partnership Agreement,” April 4, 2016. http://bmjopen.bmj.com/content/6/4/e010339.full. The report notes: “The final agreement also included an optional tobacco carve-out from ISDS, allowing TPP countries to prevent the use of ISDS to challenge tobacco control measures. Yet even these apparent ‘wins’ have some limitations. Unlike tobacco, the health system, food and alcohol were not carved out from ISDS, leaving these policy areas vulnerable to claims by foreign investors. While various safeguards have been included to try and protect public health, experts have raised doubts about whether they will be sufficient.”
[4] Glen Newey, “Investors v. States,” London Review of Books blog, April 29, 2016. http://www.lrb.co.uk/blog/2016/04/29/glen-newey/investors-v-states/
Pemex No Longer to Be Main Producer of Oil in Mexico
teleSUR | May 11, 2016
The country’s state oil company, Pemex, which is one of the federal government’s main sources of revenue, is since May 10 no longer be the country’s only producer of oil, reports revealed Wednesday, after the state-owned company granted the first six licenses for oil extraction since left-leaning Mexican former President Lazaro Cardenas nationalized the industry in 1938.
The country’s oil production will now include the participation of private energy companies in the extracting fossil fuels from designated oil fields across the country.
Mexico’s energy ministry awarded six foreign companies with contractual licences for oil extraction, during the first round of government led energy auction on Tuesday.
The Mexican Secretary of Energy Pedro Joaquin Coldwell said on Tuesday that the signing of contracts generated “great trust” between investors and companies seeking to put their money to work in the country.
International oil companies are keenly interested in the forthcoming bidding processes, which includes the participation of 28 companies are in in the upcoming bidding rounds.
The news takes place as Mexican President Enrique Peña Nieto intends to move forward with energy-sector reforms, which will allow foreign participation and financing in the energy sector, with the assumption that these measures will result in a more efficient exploitation of the country’s untapped energy potential.
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WikiLeaks: Hillary Clinton Pushed Mexico’s Oil Privatization
Nigerian president doesn’t want Cameron corruption apology… just all the country’s money back
RT | May 11, 2016
Nigerian leader Muhammadu Buhari used a keynote speech at a major anti-corruption conference in London to blast Prime Minister David Cameron for calling the African country “fantastically corrupt.”
The conference, which is currently underway, was meant to address global corruption, but a shadow was cast when Cameron was caught on camera calling Afghanistan and Nigeria “fantastically corrupt” in a conversation with the Queen and Speaker of the House John Bercow.
“What would I do with an apology? I need something tangible,” Buhari said.
“I am not going to demand any apology from anyone. What I am demanding is a return of assets.”
Buhari freely admitted before his address that his country had a graft problem and is thought to have been referring to major assets stashed in the UK by corrupt Nigerian figures.
In April 2016 a group of leading figures from Nigerian civil society raised a similar issue in an open letter, demanding Britain end its role as a “safe haven” for white-collar criminals who steal Nigeria’s wealth and resources for personal gain.
The letter’s signatories stressed the devastating effect corruption can have on ordinary citizens, stunting economic growth and exacerbating violent conflict and mass migration in its wake.
“Our Nigeria is one of those countries that has most bitterly suffered the impact. Despite the blessings of nature, which endowed us with abundant oil wealth, our infrastructure is deplorable,” the letter said.
The conference, a pet project of the PM’s, is likely to see Cameron file a motion to create a global anti-corruption body.
However, his plans have been attacked by critics on the basis the organization would have no meaningful powers of enforcement, instead relying on national and international policing agencies to intervene.
The summit comes only weeks after Cameron himself was caught up in a scandal relating to his father’s offshore company, Blairmore Holdings.
Following the Panama Papers leak that showed Cameron had profited from offshore tax schemes, the parliamentary standards committee said the PM would not be investigated. It gave no reason why.
Sanders Supporters Can Bring Down the Democrats
By Margaret Kimberley | Black Agenda Report | May 11, 2016
Donald Trump’s ascension to the Republican presidential nomination has created an enormous rift between the Republican elites and the rank and file. This process is a welcome development that could lead to the end of that party.
While the Republicans implode Hillary Clinton moves towards the Democratic party nomination by moving ever more towards the right. She and former president Bill Clinton have made it clear. They intend to get votes from independents and Republicans who can’t stomach the idea of a Trump presidency. That has been her modus operandi throughout her political career. She bragged about being a teenaged Goldwater girl and now brags about killing in Libya.
She ignores the Bernie Sanders phenomenon because she has no reason to do otherwise. From the moment he started his campaign he said he would endorse her if she won the nomination. Of course Sanders followers might change the trajectory of history by refusing to go along with the charade. If they stand firm they can also send their party into the historical dustbin where it belongs.
Trump’s supporters epitomize white nationalist sentiment but they are also driven by personal need. They have been left behind by the machinations of both parties. The trade deals concocted by Republicans and Democrats have taken the living wage jobs they expected to have forever. While they prosper more than any other group in the country they still feel affronted by their change in fortune. They don’t care about the imperial project and wouldn’t mind if Trump made good on his pledge to cease invasions and regime change plots.
Democrats on the other hand are less likely to send their party packing. They have been hypnotized by years of lies which have allowed wars, austerity, and mass incarceration to be considered acceptable, small prices to pay to keep the Republicans at bay. Black voters in particular are so fearful of Republican victory that any Democratic Party policy, no matter how damaging to them, gets the go ahead.
The election of 2016 should be historic not just because two people who are disliked by millions will run for president. It should be ground breaking because it will mean that Americans who love to think of themselves as independent will finally live up to that self-image.
The Sanders people in particular claimed to want a revolution. Now is their chance to make good on this assertion. Their task is a simple one. They must not support or vote for Hillary Clinton in November and they must say so loudly and clearly. They can vote for another party’s candidate or write in one of their own. They may exhort Sanders to deny her an endorsement. Any tactic will do. But if they follow tradition and vote for a conservative Democrat they will have made a mockery of their demand for change.
Liberal Democrats who like to think of themselves as leftists must put up or shut up. They should know by now that their party cannot be reformed. It must be done away with for good. The duplicity of the Democrats is fully on display for everyone who really wants to see it. On the one hand they will use the infamous Koch brothers to strike fear, raise money and keep their voters in line. Will they continue to do that now that Charles Koch has declared Hillary Clinton to be possibly more acceptable than Donald Trump?
In reality the Bernie Sanders campaign held more pretense than reality. Sanders isn’t really a socialist and neither are most of his voters. Yet they found it appealing to be connected to a candidate who gave them political cache. Neither are Sanders or his supporters revolutionary. The word revolution was more of a marketing ploy than anything else and continued the mirage of the possibility for change.
Sanders was always the sheep dog, as Black Agenda Report said in 2015. That does not mean his followers have to follow suit. The necessary rejection of Hillary Clinton will also mean a rejection of the man they admired and voted for if he does as he promised and endorses her.
Sanders voters can be the revolutionaries they aspired to be if they loudly and publicly state that they won’t vote for Hillary Clinton. They will need a great deal of determination as they will surely be scapegoated, guilt whipped and blamed for her defeat. But those attacks should be considered as a badge of honor in what may well be a revolutionary effort.
Of course if people “felt the Bern” only because they hoped for a better Democrat then this effort is for naught. By now everyone should know that the corruption in the Democrat party cannot be cut out. The party doesn’t want to change itself and makes sure that opponents end up just driving the sheep.
It is time for the Sanders supporters to make good on calls for revolution. They can do that by actively and openly denying Hillary Clinton the presidency. When they are called spoilers they must proudly own the charge and declare that they meant what they said. They are fighting for a revolution.
Margaret Kimberley can be reached via e-Mail at Margaret.Kimberley(at)BlackAgendaReport.com.
Israel imposes “general closure” on Palestinian territory for Israeli Independence day
Ma’an – May 11, 2016
BETHLEHEM – Israeli authorities declared a “general closure” on Gaza and the occupied West Bank since midnight on Tuesday and continuing until midnight on Thursday as Israel celebrates its Memorial and Independence day.
The general closure was implemented on the West Bank and the besieged Gaza Strip yesterday, marking Israeli Memorial day, and will continue until the finish of Israel’s Independence day on Thursday.
Crossings into Israel from the West Bank and Gaza are only being permitted in humanitarian cases. However, a representative of the Palestinian Authority (PA) has requested approval for Palestinians in need of serious medical assistance, a spokesperson for the Coordination of Government Activities in the Territories (COGAT) told Ma’an.
An Israeli army spokesperson said the closure was implemented following an army “security assessment” and added that the closure restrictions included the passage of products and the movement of people into Israel and its illegal settlements.
Debilitating poverty and lack of employment drives many workers in the occupied West Bank to enter Israel in search of work. Israel’s imposition of closures on the Palestinian territory has severely affected the livelihoods of hundreds of thousands of Palestinians who depend on entering Israel, or its illegal settlements, for employment opportunities.
The number of Palestinians employed, both documented and undocumented, in Israel and its illegal settlements for the first quarter of 2016 was 114,000, according to the Palestinian Central Bureau of Statistics (PCBS).
The average unemployment rate for the Palestinian territory was 26.6% for this same period: 18% in the West Bank and a staggering 41.2% in Gaza. The poor state of the Palestinian territory’s economy is largely attributed to the decades-long Israeli military occupation of the West Bank and the nearly nine year Israeli blockade on the Gaza Strip which severely undermines any economic developments.
Israeli authorities movement restrictions on Palestinians in the West Bank as recently as a few weeks ago during the Jewish holiday of Passover, including implementing a full closure on the besieged enclave of Gaza.
Sweatshop Turkey
By Stephen Lendman | May 6, 2016
Turkey shamelessly exploits its Syrian refugee population. Hundreds of thousands of adults and children work for sub-poverty wages under deplorable conditions.
State-authorized sweatshops exist in many parts of the world, Turkey a notorious example, a hugely repressive police state, profiting from human misery.
London’s Guardian reported on Syrian child refugees in Turkey, many unable to go to school, forced to choose between harsh sweatshop labor or war at home.
They work 12 hours a day, six days a week, earning sub-minimum wage pay and no benefits. Syrian Relief Network (SRN) director Kais al-Dairi explained “irreversible” harm done to vast numbers of young Syrian refugee children.
“Even if everything stopped now and we had peace, we would just be doing damage control. We have lost a generation. We are trying not to lose a second one.”
Children in Turkish refugee camps are forced to work to help their families survive. They earn less than $10 a day. Syrian families in Turkey spend more than they earn, so are forced to borrow to get by and have their children work.
They’re victims of laws benefiting employers at workers’ expense, denied rights afforded Turkish nationals.
Sub-poverty pay prevents adult workers from caring for family members properly. It gets worse.
Many adults can’t find work. Research shows in nearly half of Hatay, Turkey, Syrian refugee families, a child is the only breadwinner, earning far too little for members to survive.
Many employers prefer hiring easily exploitable children at less pay than adults for maximum profits. They’re entitled to education in Turkey but don’t get it.
The Guardian said legal loopholes “give headmasters the right not to admit Syrians if their presence would conceivably affect the learning of Turkish students.”
Child workers are often ill-treated. Sexual and physical abuse are common, SRN’s Kais al-Dairi saying “I have interviewed kids and they say in their innocent way, ‘this guy held my hand. This guy tried to lead me here. This guy tried to touch me here.’ “
One child reported his sweatshop boss “beat(ing) (him) with a screwdriver, metal, whatever is in his hand. Once… he threw a bottle at me.”
UNICEF said Syrian “(c)hildren report being actively encouraged to join the war” at home at much higher pay than from sweatshop labor. According to al-Dairi, child soldiers have no futures, able only to fight and die as warriors.
Despite enormous hardships most people can’t imagine, many Syrians see Europe as their best option – for themselves and their children. Disappointment awaits them.
Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.
His new book as editor and contributor is titled Flashpoint in Ukraine: US Drive for Hegemony Risks WW III.
NAM slams US court ruling on Iran’s frozen assets
Press TV – May 5, 2016
The Non-Aligned Movement (NAM) has denounced the US Supreme Court’s recent ruling that allows for the seizure of frozen Iranian assets, describing the measure as violation of the international law.
The movement, which is comprised of 120 member states, in a statement released on Thursday called the decision a violation of Washington’s international and treaty obligations concerning “the sovereign immunity of states.”
It also lambasted the ruling as an illegal US practice and in defiance of the international law, urging the US administration “to respect the principle of state immunity.”
NAM also warned that Washington’s failure to adhere to this principle will have “adverse implications, including uncertainty and chaos in international relations.”
The movement further criticized the US Congress for paving the way for illegal confiscation of foreign assets, and the actions by the US government to unlawfully hold them.
The US Supreme Court ruled on April 20 that Iran’s assets frozen in a bank account, which are worth around $2 billion, should be turned over to American families of those killed in a 1983 bombing in Beirut and other attacks blamed on Iran. Tehran has denied any role in the attacks.
The money, which belongs to the Central Bank of Iran (CBI), had been blocked under US sanctions before the court ruling.
Iranian Foreign Minister Mohammad Javad Zarif has denounced the seizure of the frozen assets as “highway robbery,” vowing that the Islamic Republic will retrieve the sum anyway.
“It is a theft. Huge theft. It is highway robbery. And believe you me, we will get it back,” Zarif told The New Yorker magazine in an interview published on April 25.
The chairman of Iran’s parliamentary National Security and Foreign Policy Committee, Alaeddin Boroujerdi, said on Tuesday that Iranian nationals can file more than 190 cases with domestic courts against Washington compared to the 90 cases pending against Iran in US courts.
“In the world of politics, one should possess counter-pressure levers. Iran should therefore respond to the American move. We possess the means to take action against the US,” he added.
South China Sea Dispute: How Russia Could Help China Win in The Hague
© Sputnik/ Ramil Sitdikov
Sputnik | May 4, 2016
The Kremlin could one day regret any US detachment from the South China Sea, American geopolitical analyst Tim Daiss insists. Are Washington’s efforts truly aimed at maintaining the freedom of navigation in the region or is it part of Obama’s plan to write the rules and call the shots in the Asia Pacific region?
Russia’s opposition to internationalizing the South China Sea dispute and the US deployment of the Terminal High-Altitude Area Defense (THAAD) system in South Korea has promted deep concerns among American geopolitical analysts.
Moscow’s support for Beijing has put the US plan to pressure China into making concessions on the maritime dispute in the South China Sea at risk. On the other hand, India’s decision to side with China on the issue has caught Western observers by surprise.
“China and Russia have agreed on the need to limit US influence in the Asia Pacific Region. On Friday, following bilateral talks in Beijing Russia’s foreign minister Sergey Lavrov and his Chinese counterpart Wang Yi expressed opposition to the US deployment of an anti-missile system in South Korea and also said that non-claimants should not take sides in the dispute over maritime territorial claims in the South China Sea,” American geopolitical analyst Tim Daiss wrote in his Op-Ed for Forbes.
Russian Foreign Minister Lavrov has repeatedly stated that the South China Sea dispute should be resolved by the parties directly concerned, while outside powers should refrain from interfering.
A joint communiqué of the 14th Meeting of the Foreign Ministers of the Russian Federation, the Republic of India and the People’s Republic of China singed on April 18, 2016, reads:
“Russia, India and China are committed to maintaining a legal order for the seas and oceans based on the principles of international law, as reflected notably in the UN Convention on the Law of Sea (UNCLOS). All related disputes should be addressed through negotiations and agreements between the parties concerned. In this regard the Ministers called for full respect of all provisions of UNCLOS, as well as the Declaration on the Conduct of Parties in the South China Sea (DOC) and the Guidelines for the implementation of the DOC.”
South China Sea claims map (© Photo: Wikipedia/Voice of America)
The statement coincided with reports that Beijing is seeking Moscow’s support over the South China Sea court battle with the Philippines in the Hague.
Nearly three years ago, the Philippines, backed by America, filed a lawsuit against China in the Hague International Tribunal Court. In October 2015 the Permanent Court of Arbitration in The Hague confirmed that it would hold a hearing on the matter. The hearing is expected to take place in May or June 2016.
“China is lobbying Russia for support in opposing international court proceedings launched by the Philippines over the disputed South China Sea,” South China Morning Post reported April 20.
Beijing has reason to believe that Moscow can provide it with juridical assistance to solve the problem, Alexander Shpunt of Russia’s Regnum media outlet suggested.
Shpunt called attention to the fact that on April 20 Moscow won the Yukos case in the District Court in the Hague; a Dutch court overturned an award of $50 billion to former shareholders of the now defunct Yukos oil company that Russia had been ordered to pay by the Permanent Court of Arbitration in 2014.
The journalist continued that Lavrov’s notion about “outside parties” in the South China Sea dispute is a direct reference to the Permanent Court of Arbitration in the Hague that will soon hold hearing on the Philippines’ complaint against China.
This is the issue of utmost importance for Beijing that Moscow has outplayed the Permanent Court of Arbitration, Shpunt emphasized.
However, according to Daiss, Beijing is the major troublemaker in the region that plans to outwit its “much smaller Asian neighbors.”
“Who knows what the future holds geopoliticaly?” he wrote, adding that “the Kremlin could one day regret any US detachment from the South China Sea.”
Like many other Western observers Daiss remained silent about the fact that China’s Asian neighbors are also involved in controversial building activities in the South China Sea region, while, for example, Taiwan’s constructions in the Spratlys are located outside any claimed Taiwanese exclusive economic zone.”Of the six countries claiming an interest in the Spratlys, only Brunei has failed to construct structures, mostly on stilts, on more than 40 of these islets and reefs. Yet the western media again focuses exclusively on [China’s] ‘aggressive’ reclamation and building activities,” Australian lawyer James O’Neill wrote in his article for New Eastern Outlook.
What lies at the root of this double-standard approach? And is Washington really “trying to keep the sea lanes open in the name of freedom of navigation for any and all countries” as Daiss claims?
Apparently, US President Barack Obama’s latest Op-Ed in the Washington Post could shed some light on the matter.
“Today, some of our greatest economic opportunities abroad are in the Asia-Pacific region, which is on its way to becoming the most populous and lucrative market on the planet,” Obama wrote.
“Of course, China’s greatest economic opportunities also lie in its own neighborhood, which is why China is not wasting any time,” he noted referring to Beijing’s New Silk Road initiative.
“Instead, America should write the rules. America should call the shots. Other countries should play by the rules that America and our partners set, and not the other way around,” Obama stressed.
Given this, it becomes clear that what Washington is truly interested in is not the freedom of navigation “for any and all countries,” but its dominance in the region.
Read more:
All for One: How Russia, China, India Will Solve South China Sea Dispute
‘They Said No’: China Denies US Aircraft Carrier Entry to Hong Kong
What is Really Going on Behind the Curtains in South China Sea?
Why the US Will Not Sign the UN Convention on the Law of the Sea
By Ken Meyercord | Dissident Voice | May 4, 2016
Critics of American foreign policy love to point out instances where our policy reeks of hypocrisy. No current issue in international affairs affords a better illustration of our inconsistent sanctimoniousness than the dispute over competing claims to insular territories (whether to call them “islands” or “rocks” is of great significance, as we shall see) in the South China Sea.
Symptomatic of our hypocrisy on this issue, we protest Chinese “aggressive” actions in the area by sailing the Seventh Fleet through the territorial waters of atolls turned into landing-strips to demonstrate our commitment to protecting freedom of navigation. Yet we refuse to sign the UN’s Convention on the Law of the Sea (UNCLOS), the international effort to formalize the rules governing freedom of navigation on the high seas. The convention, which has been around since 1982, has been ratified by over 160 UN member states, including China, but not by the U.S. of A.
Opponents of the UNCLOS, like Senators Portman and Ayotte, contend that the convention infringes on US sovereignty, in particular with regard to its provision for international arbitration of disputes (keep that in mind when the Permanent Court of Arbitration rules on a suit brought by the Philippines over China’s claims in the South China Sea). But I believe the main reason for our unwillingness to ratify the UNCLOS lies elsewhere.
The convention makes a distinction between “islands”, which can support human habitation, and “rocks”, which cannot. The territorial waters around either type of sea-bound outcrop can be claimed up to 12-miles out, but a 200-mile Exclusive Economic Zone (EEZ) can only be claimed around an island, not a rock.
We have a number of possessions in the Pacific, formally called US Minor Outlying Islands, around which we claim EEZs. Here’s a map showing them:
Most of these possessions were acquired in the late 19th century under the Guano Islands Act of 1856. There was a gold rush, so to speak, for guano deposits at the time as the phosphate-rich bird poop was much sought after as a fertilizer. The act authorized any American captain who stumbled on an uninhabited, unclaimed island covered in guano to claim it in the name of the United States. Under the act dozens of islands came into America’s possession, most of which we gave up once an island had been stripped clean, literally. Currently, none of our outlying islands have permanent residents.
As can be seen, the EEZs around these outlying “islands” cover a sizeable area. In fact, the projection used causes the EEZs in the South Pacific to look smaller than they actually are compared to zones in more northern latitudes. Just one of the equatorial EEZs, that around the Howland and Baker Islands, is larger than the EEZ off the California coast.
Under UNCLOS, many of these “islands” would be deemed mere rocks, not entitled to EEZs. The same is probably true of some of the “islands” in the Aleutian Islands chain. Hence, ratification of the Convention on the Law of the Sea would result in a significant diminution of our Exclusive Economic Zones, something our world-beaters are not likely to agree to readily.
Despite the rocky grounds for many of our own claims, we pooh-pooh Chinese claims based on similar grounds. I recently heard a former Deputy Under Secretary of Defense, Kathleen Hicks, belittle China’s claim to the Scarborough Shoal because it is almost underwater at high tide (see this video at the 2:55:26 minute mark); yet we claim not only the territorial waters but also an EEZ around a reef in the Hawaiian Islands chain, Maro Reef, which is entirely submerged, even at LOW tide.
As mentioned previously, the Philippines has taken China to court over its claims in the South China Sea. The court in question, the Permanent Court of Arbitration, is often referred to in the press as a “UN tribunal” to give it greater cachet, but, in fact, it is not part of the UN, being a body created in 1899 when imperialism ruled the waves. No wonder China refuses to participate in the proceedings (a Palestinian in an Israeli court stands a better chance) and will no doubt ignore an adverse ruling. If so, you can count on our media howling about China flaunting the rule of law, how outraged the “the international community” (read “NATO”) is, and the like.
Perhaps some courageous, soon-to-be-unemployed journalist will be brave enough to point out that when Nicaragua took us before the International Court of Justice – an actual UN body – over our mining of their harbors and other offenses, we refused to participate in the proceedings, claiming the court did not have jurisdiction. When the court ruled against us, we blocked enforcement of the ruling through our veto in the Security Council. Embarrassingly, in light of current posturing, one of the charges levelled against us was interrupting peaceful maritime commerce – this by the self-proclaimed protector of freedom of navigation in the western Pacific.
To the uninformed (read “Kathleen Hicks”), it will seem obvious to whom sovereignty over the Scarborough Shoal belongs. Just look at how close they are to the Philippines and how far from China.
Ms. Hicks has probably never heard of Navassa Island, another Guano Islands Act possession of ours (see the map of US EEZs above). It lies far from our shores but just off the coast of Haiti, which also claims it. We’ve shown no willingness to give up the former El Dorado of avian defecation simply based on geography.
Similarly, when bemoaning how far China’s nine-dash-line delineating its claims in the South China Sea (shown as a solid red line above) extends from the Chinese mainland, we should consider what a line encompassing our own far-flung possessions would look like. Our line, like China’s, would reflect past naval exploits, not proximity to ours or someone else’s coast, and our line would extend much farther from our mainland than China’s does from theirs.
Adopting a conveniently faulty memory, we call for peaceful resolution of the disputes and require all disputants (read “China”) to refrain from aggressive actions, like populating disputed territories, but in 1935 we secretly started placing settlers on Howland, Baker, and Jarvis Islands, former Guano Islands Act possessions long forgotten and by then of lapsed and uncertain ownership. After a year of surreptitious colonizing, President Roosevelt revealed the sneaky scheme and proclaimed the islands American territory. That sort of behavior would not be condoned under the Convention on the Law of the Sea, another reason our wily buccaneers will not sign it.
Ken Meyercord can be reached at: kiaskfm@verizon.net.
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From the Archives
How 1960’s French Nuclear Tests Are Still Claiming Lives in Algeria
Sputnik – 15.02.2018
On February 13, 1960, France carried out its first nuclear test in Algeria’s southern Reggane region. According to official statistics, 17 nuclear tests were carried out in total over the next 6 years. The area remains affected, and local scientists say that radioactive contamination has caused genetic mutations and irreversibly changed the region.
There are no official statistics on the number of victims. The only figures can be found in the records kept by the French representative of the local church, which lists 42,000 victims of nuclear tests. Three years ago, the French Ministry of Defense issued a statement, putting the number at 27,000 people. The victims include French soldiers as well as local Algerians who lived in the surrounding areas. … continue
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