India to sign major weapons deal with Israel
Press TV – February 18, 2015
India reportedly plans to finalize a major arms deal with the Israeli regime worth nearly USD1.5 billion that includes Phalcon AWACS (airborne warning and control systems) and four aerostat radars.
The military deal will likely be sealed during a visit to India by Israeli minister for military affairs, Moshe Ya’alon, who is due in the city of Bangalore on Wednesday for the Aero India show, which will continue through February 22.
The Israeli official, who is due to hold talks with India’s Defense Minister Manohar Parrikar, will be accompanied by major Israeli military contractors.
The bi-annual Aero India exhibit is India’s biggest showcase of military equipment.
“We are flexible when it comes to transfer of technology,” said the spokesman for the Israeli embassy in New Delhi, Ohad Horsandi, who added, “A while back, Israel and India had shifted away from buyer-seller relations toward a stronger and more equal partnership that can include joint production and co-development.”
Indian Prime Minister Narendra Modi is reportedly seeking to enhance its military and security ties with the Washington and Tel Aviv in a bid to overhaul a largely Soviet-era arsenal and turn India into a global manufacturing hub.
India plans a USD 150-billion military spending spree through 2027. Pending purchases include 126 Rafale fighter jets from the France-based Dassault company and 145 howitzer guns from the UK-based firm, BAE Systems Plc.
During a visit to India last month, US President Barack Obama agreed to a pilot project in which India will jointly manufacture parts for drones and transport jets. The two countries will also set up a working group to share aircraft carrier technology and develop jet engines.
India last year decided to buy Israeli anti-tank guided missiles and launchers and revive the joint development of a long-range missile. The USD 659 million of Israeli arms purchases since Modi took power is more than Israeli regime’s total military exports to India in the prior three years.
Ukraine Denouement
By Michael Hudson | CounterPunch | February 16, 2015
The fate of Ukraine is now shifting from the military battlefield back to the arena that counts most: that of international finance. Kiev is broke, having depleted its foreign reserves on waging war that has destroyed its industrial export and coal mining capacity in the Donbass (especially vis-à-vis Russia, which normally has bought 38 percent of Ukraine’s exports). Deeply in debt (with €3 billion falling due on December 20 to Russia), Ukraine faces insolvency if the IMF and Europe do not release new loans next month to pay for new imports as well as Russian and foreign bondholders.
Finance Minister Natalia Yaresko announced on Friday that she hopes to see the money begin to flow in by early March.[1] But Ukraine must meet conditions that seem almost impossible: It must implement an honest budget and start reforming its corrupt oligarchs (who dominate in the Rada and control the bureaucracy), implement more austerity, abolish its environmental protection, and make its industry “attractive” to foreign investors to buy Ukraine’s land, natural resources, monopolies and other assets, presumably at distress prices in view of the country’s recent devastation.
Looming over the IMF loan is the military situation. On January 28, Christine Lagarde said that the IMF would not release more money as long as Ukraine remains at war. Cessation of fighting was to begin Sunday morning. But Right Sector leader Dmytro Yarosh announced that his private army and that of the Azov Battalion will ignore the Minsk agreement and fight against Russian-speakers. He remains a major force within the Rada.
How much of Ukraine’s budget will be spent on arms? Germany and France made it clear that they oppose further U.S. military adventurism in Ukraine, and also oppose NATO membership. But will Germany follow through on its threat to impose sanctions on Kiev in order to stop a renewal of the fighting? For the United States bringing Ukraine into NATO would be the coup de grace blocking creation of a Eurasian powerhouse integrating the Russian, German and other continental European economies.
The Obama administration is upping the ante and going for broke, hoping that Europe has no alternative but to keep acquiescing. But the strategy is threatening to backfire. Instead of making Russia “lose Europe,” the United States may have overplayed its hand so badly that one can now think about the opposite prospect. The Ukraine adventure could turn out to be the first step in the United States losing Europe. It may end up splitting European economic interests away from NATO, if Russia can convince the world that the epoch of armed occupation of industrial nations is a thing of the past and hence no real military threat exists – except for Europe being caught in the middle of Cold War 2.0.
For the U.S. geopolitical strategy to succeed, it would be necessary for Europe, Ukraine and Russia to act against their own potential economic self-interest. How long can they be expected to acquiesce in this sacrifice? At what point will economic interests lead to a reconsideration of old geo-military alliances and personal political loyalties?
This is becoming urgent because this is the first time the EU has been faced with such war on its own borders (if we except Yugoslavia). Where is the advantage for Europe supporting one of the world’s most corrupt oligarchies north of the Equator?
America’s Ukrainian adventure by Hillary’s appointee Victoria Nuland (kept on and applauded by John Kerry), as well as by NATO, is forcing Europe to commit itself to the United States or pursue an independent line. George Soros (whose aggressive voice is emerging as the Democratic Party’s version of Sheldon Adelson) recently urged (in the newly neocon New York Review of Books) that the West give Ukraine $50 billion to re-arm, and to think of this as a down payment on military containment of Russia. The aim is the old Brzezinski strategy: to foreclose Russian economic integration with Europe. The assumption is that economic alliances are at least potentially military, so that any power center raises the threat of economic and hence political independence.
The Financial Times quickly jumped on board for Soros’s $50 billion subsidy.[2] When President Obama promised that U.S. military aid would be only for “defensive arms,” Kiev clarified that it intended to defend Ukraine all the way to Siberia to create a “sanitary cordon.”
First Confrontation: Will the IMF Loan Agreement try to stiff Russia?
The IMF has been drawn into U.S. confrontation with Russia in its role as coordinating Kiev foreign debt refinancing. It has stated that private-sector creditors must take a haircut, given that Kiev can’t pay the money its oligarchs have either stolen or spent on war. But what of the €3 billion that Russia’s sovereign wealth fund loaned Ukraine, under London rules that prevent such haircuts? Russia has complained that Ukraine’s budget makes no provision for payment. Will the IMF accept this budget as qualifying for a bailout, treating Russia as an odious creditor? If so, what kind of legal precedent would this set for sovereign debt negotiations in years to come?
International debt settlement rules were thrown into a turmoil last year when U.S. Judge Griesa gave a highly idiosyncratic interpretation of the pari passu clause with regard to Argentina’s sovereign debts. The clause states that all creditors must be treated equally. According to Griesa (uniquely), this means that if any creditor or vulture fund refuses to participate in a debt write-down, no such agreement can be reached and the sovereign government cannot pay any bondholders anywhere in the world, regardless of what foreign jurisdiction the bonds were issued under.
This bizarre interpretation of the “equal treatment” principle has never been strictly applied. Inter-governmental debts owed to the IMF, ECB and other international agencies have not been written down in keeping with private-sector debts. Russia’s loan was carefully framed in keeping with London rules. But U.S. diplomats have been openly – indeed, noisily and publicly – discussing how to “stiff” Russia. They even have thought about claiming that Russia’s Ukraine loans (to help it pay for gas to operate its factories and heat its homes) are an odious debt, or a form of foreign aid, or subject to anti-Russian sanctions. The aim is to make Russia “less equal,” transforming the concept of pari passu as it applies to sovereign debt.
Just as hedge funds jumped into the fray to complicate Argentina’s debt settlement, so speculators are trying to make a killing off Ukraine’s financial corpse, seeing this gray area opened up. The Financial Times reports that one American investor, Michael Hasenstab, has $7 billion of Ukraine debts, along with Templeton Global Bond Fund.[3] New speculators may be buying Ukrainian debt at half its face value, hoping to collect in full if Russia is paid in full – or at least settle for a few points’ quick run-up.
The U.S.-sponsored confusion may tie up Russia’s financial claims in court for years, just as has been the case with Argentina’s debt. At stake is the IMF’s role as debt coordinator: Will it insist that Russia take the same haircut that it’s imposing on private hedge funds?
This financial conflict is becoming a new mode of warfare. Lending terms are falling subject to New Cold War geopolitics. This battlefield has been opened up by U.S. refusal in recent decades to endorse the creation of any international body empowered to judge the debt-paying capacity of countries. This makes every sovereign debt crisis a grab bag that the U.S. Treasury can step in to dominate. It endorses keeping countries in the U.S. diplomatic orbit afloat (although on a short leash), but not countries that maintain an independence from U.S. policies (e.g., Argentina and BRICS members).
Looking forward, this position threatens to fracture global finance into a U.S. currency sphere and a BRICS sphere. The U.S. has opposed creation of any international venue to adjudicate the debt-paying capacity of debtor nations. Other countries are pressing for such a venue in order to save their economies from the present anarchy. U.S. diplomats see anarchy as offering an opportunity to bring U.S. diplomacy to bear to reward friends and punish non-friends and “independents.” The resulting financial anarchy is becoming untenable in the wake of Argentina, Greece, Ireland, Spain, Portugal, Italy and other sovereign debtors whose obligations are unpayably high.
The IMF’s One-Two Punch leading to privatization sell-offs to rent extractors
IMF loans are made mainly to enable governments to pay foreign bondholders and bankers, not spend on social programs or domestic economic recovery. Sovereign debtors must agree to IMF “conditionalities” in order to get enough credit to enable bondholders to take their money and run, avoiding haircuts and leaving “taxpayers” to bear the cost of capital flight and corruption.
The first conditionality is the guiding principle of neoliberal economics: that foreign debts can be paid by squeezing out a domestic budget surplus. The myth is that austerity programs and cuts in public spending will enable governments to pay foreign-currency debts – as if there is no “transfer problem.”
The reality is that austerity causes deeper economic shrinkage and widens the budget deficit. And no matter how much domestic revenue the government squeezes out of the economy, it can pay foreign debts only in two ways: by exporting more, or by selling its public domain to foreign investors. The latter option leads to privatizing public infrastructure, replacing subsidized basic services with rent-extraction and future capital flight. So the IMF’s “solution” to the debt problem has the effect of making it worse – requiring yet further privatization sell-offs.
This is why the IMF has been wrong in its economic forecasts for Ukraine year after year, just as its prescriptions have devastated Ireland and Greece, and Third World economies from the 1970s onward. Its destructive financial policy must be seen as deliberate, not an innocent forecasting error. But the penalty for following this junk economics must be paid by the indebted victim.
In the wake of austerity, the IMF throws its Number Two punch. The debtor economy must pay by selling off whatever assets the government can find that foreign investors want. For Ukraine, investors want its rich farmland. Monsanto has been leasing its land and would like to buy. But Ukraine has a law against alienating its farmland and agricultural land to foreigners. The IMF no doubt will insist on repeal of this law, along with Ukraine’s dismantling of public regulations against foreign investment.
International finance as war
The Ukraine-IMF debt negotiation shows why finance has become the preferred mode of geopolitical warfare. Its objectives are the same as war: appropriation of land, raw materials (Ukraine’s gas rights in the Black Sea) and infrastructure (for rent-extracting opportunities) as well as the purchase of banks.
The IMF has begun to look like an office situated in the Pentagon, renting a branch office on Wall Street from Democratic Party headquarters, with the rent paid by Soros. His funds are drawing up a list of assets that he and his colleagues would like to buy from Ukrainian oligarchs and the government they control. The buyout payments for partnership with the oligarchs will not stay in Ukraine, but will be moved quickly to London, Switzerland and New York. The Ukrainian economy will lose the national patrimony with which it emerged from the Soviet Union in 1991, still deeply in debt (mainly to its own oligarchs operating out of offshore banking centers).
Where does this leave European relations with the United States and NATO?
The two futures
A generation ago the logical future for Ukraine and other post-Soviet states promised to be an integration into the German and other West European economies. This seemingly natural complementarity would see the West modernize Russian and other post-Soviet industry and agriculture (and construction as well) to create a self-sufficient and prosperous Eurasian regional power. Foreign Minister Lavrov recently voiced Russia’s hope at the Munich Security Conference for a common Eurasian Union with the European Union extending from Lisbon to Vladivostok. German and other European policy looked Eastward to invest its savings in the post-Soviet states.
This hope was anathema to U.S. neocons, who retain British Victorian geopolitics opposing the creation of any economic power center in Eurasia. That was Britain’s nightmare prior to World War I, and led it to pursue a diplomacy aimed at dividing and conquering continental Europe to prevent any dominant power or axis from emerging.
America started its Ukrainian strategy with the idea of splitting Russia off from Europe, and above all from Germany. The U.S. playbook is simple: Any economic power is potentially military; and any military power may enable other countries to pursue their own interests rather than subordinating their policy to U.S. political, economic and financial aims. Therefore, U.S. geostrategists view any foreign economic power as a potential military threat, to be countered before it can gain steam.
We can now see why the EU/IMF austerity plan that Yanukovich rejected made it clear why the United States sponsored last February’s coup in Kiev. The austerity that was called for, the removal of consumer subsidies and dismantling of public services would have led to an anti-West reaction turning Ukraine strongly back toward Russia. The Maidan coup sought to prevent this by making a war scar separating Western Ukraine from the East, leaving the country seemingly no choice but to turn West and lose its infrastructure to the privatizers and neo-rentiers.
But the U.S. plan may lead Europe to seek an economic bridge to Russia and the BRICS, away from the U.S. orbit. That is the diplomatic risk when a great power forces other nations to choose one side or the other.
The silence from Hillary
Having appointed Valery Nuland as a holdover from the Cheney administration, Secretary of State Hillary Clinton joined the hawks by likening Putin to Hitler. Meanwhile, Soros’s $10 million on donations to the Democratic Party makes him one of its largest donors. The party thus seems set to throw down the gauntlet with Europe over the shape of future geopolitical diplomacy, pressing for a New Cold War.
Hillary’s silence suggests that she knows how unpopular her neocon policy is with voters – but how popular it is with her donors. The question is, will the Republicans agree to not avoid discussing this during the 2016 presidential campaign? If so, what alternative will voters have next year?
This prospect should send shivers down Europe’s back. There are reports that Putin told Merkel and Holland in Minsk last week that Western Europe has two choices. On the one hand, it and Russia can create a prosperous economic zone based on Russia’s raw materials and European technology. Or, Europe can back NATO’s expansion and draw Russia into war that will wipe it out.
German officials have discussed bringing sanctions against Ukraine, not Russia, if it renews the ethnic warfare in its evident attempt to draw Russia in. Could Obama’s neocon strategy backfire, and lose Europe? Will future American historians talk of who lost Europe rather than who lost Russia?
Michael Hudson’s book summarizing his economic theories, “The Bubble and Beyond,” is now available in a new edition with two bonus chapters on Amazon. His latest book is Finance Capitalism and Its Discontents. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion, published by AK Press. He can be reached via mh@michael-hudson.com
Notes.
[1] Fin min hopes Ukraine will get new IMF aid in early March – Interfax, http://research.tdwaterhouse.ca/research/public/Markets/NewsArticle/1664-L5N0VN2DO-1
5:40AM ET on Friday Feb 13, 2015 by Thomson Reuters
[2] “The west needs to rescue the Ukrainian economy,” Financial Times editorial, February 12, 2015.
[3] Elaine Moore, “Contrarian US investor with $7bn of debt stands to lose most if Kiev imposes haircut,” Financial Times, February 12, 2015.
Revolving door between arms dealers & govt exposed
RT | February 16, 2015
Arms manufacturers currently have dozens of employees seconded to the Ministry of Defence (MoD) and other British government agencies, an investigation has discovered.
The revelations highlight the close relationship between business and government, especially in highly lucrative industries such as the arms trade.
Employees from BAE Systems (manufacturers of the Eurofighter Typhoon), MBDA (makers of missiles), Babcock (defense contractor working on Trident nuclear submarine replacement), and MSI (gunnery systems producer) have all taken senior level roles within the MoD.
BAE systems, the second largest arms company in the world, has had more than 10 executives seconded to the MoD and the arms sales unit of UK Trade & Investment (UKTI) in the last year.
The MoD’s Equipment and Support Branch, which has a £14 billion annual budget to buy equipment for the armed forces, hosted nine BAE executives in senior positions, the investigation by the Guardian found.
UKTI Defence and Security Organisation, another government department, had four secondments from BAE, two from MBDA, and two from Detica, a cyber-security specialist acquired by BAE in 2010.
While on secondment, salaries are paid by the company and not by the government department they join.
Personnel exchange between business and government works in the opposite direction as well, with 13 civil servants having been seconded from the MoD to outside organizations, including cyber-security company Templar Executives, Lloyds Banking group, arms firm QinetiQ, defense think tank the Institute for Security and Resilience Studies (ISRS) and the BBC.
The Campaign Against Arms Trade (CAAT) described the arrangement as “totally inappropriate.”
Speaking to the Guardian, Andrew Smith of CAAT said, “Arms companies already enjoy a significant and totally disproportionate level of government support, and these kinds of secondments only make it more so.
“It is totally inappropriate for arms companies that will be lobbying for extra military spending to be working for departments that buy their wares.”
Natalie Bennett, the leader of the Green Party, said the British government’s relationship with arms manufacturers was “uncomfortably close.”
“All too often we’ve seen the government’s actions aligned with the interests of big business, which is particularly concerning when the businesses involved produce weapons,” she told the Guardian.
“For many years, the British government has had an uncomfortably close relationship with arms manufacturers and a shady record of arming dictatorships to match.”
“Secondments like these cast a shadow of doubt over the integrity over the actions of both the MoD and UKTI when it comes to their dealings with arms manufacturers. Our policies should serve the common good and must be free from the influence of vested interests like arms companies.”
The Guardian’s revelations come in the wake of the HSBC tax avoidance scandal in which the revolving door between financial institutions and government has also faced scrutiny.
Lord Green, the former head of HSBC, came under the spotlight for having taken the role of Minister of State for Trade and Investment immediately after leaving the bank.
Leaked documents allege that during Green’s tenure as Chairman of HSBC from 2006 to 2010, he oversaw the orchestration of industrial scale tax evasion for drug dealers, international criminals, dictators and terrorists.
Lord Green stood down from a senior position in the banking lobby group The City UK on Saturday.
RELATED: Pregnant activist crashes glitzy arms industry dinner, urges guests ‘consider career change’
US Ex-Defense Chief Hawks Escalation in Ukraine
Sputnik News | 15.02.2015
Former US Secretary of Defense Leon Panetta is arguing for supplying arms to Ukraine, saying the US should counter Russia’s influence in the former Soviet Union and act as a global leader.
Dealing with Russia should be done from a position of “strength, not from weakness,” former US Secretary of Defense Leon Panetta told Der Spiegel in an interview published on Saturday, saying that giving Ukraine military aid would give Russia a “higher price to pay.”
“I would have provided arms to Ukraine early on because I think they need to have the military aid necessary to send Russia a message,” Panetta told the publication.
Panetta said that he doubts that the current ceasefire will last, saying that “like the last one, it will only be temporary unless the West is willing to enforce it with both economic and military support to the Ukrainians.”
Panetta added that he would act from a position of strength, and would also give more military aid to NATO countries which border Russia.
“The United States has to be a leader in the world, because the problem is: If we are not leading, nobody else will,” he added.
France, Germany, Italy, Spain and Finland have all rejected the idea of providing Ukraine with lethal assistance. Russia has warned that the proposed US arms deliveries to Kiev could lead to a sharp increase in violence in Donbas, where fighting intensified at the start of 2015. In addition, Russia denies that it is militarily involved in the conflict.
Leon Panetta was the director of the Central Intelligence Agency from 2009 to 2011 and US Secretary of Defense from 2011 to 2013.
How Many More Wars?
By Ron Paul | February 16, 2015
Last week President Obama sent Congress legislation to authorize him to use force against ISIS “and associated persons and forces” anywhere in the world for the next three years. This is a blank check for the president to start as many new wars as he wishes, and it appears Congress will go along with this dangerous and costly scheme.
Already the military budget for next year is equal to all but the very peak spending levels during the Vietnam war and the Reagan military build-up, according to the Project on Defense Alternatives. Does anyone want to guess how much will be added to military spending as a result of this new war authorization?
The US has already spent nearly two billion dollars fighting ISIS since this summer, and there hasn’t been much to show for it. A new worldwide war on ISIS will likely just serve as a recruiting tool for jihadists. We learned last week that our bombing has led to 20,000 new foreign fighters signing up to join ISIS. How many more will decide to join each time a new US bomb falls on a village or a wedding party?
The media makes a big deal about the so-called limitations on the president’s ability to use combat troops in this legislation, but in reality there is nothing that would add specific limits. The prohibition on troops for “enduring” or “offensive” ground combat operations is vague enough to be meaningless. Who gets to determine what “enduring” means? And how difficult is it to claim that any ground operation is “defensive” by saying it is meant to “defend” the US? Even the three year limit is just propaganda: who believes a renewal would not be all but automatic if the president comes back to Congress with the US embroiled in numerous new wars?
If this new request is not bad enough, the president has announced that he would be sending 600 troops into Ukraine next month, supposedly to help train that country’s military. Just as the Europeans seem to have been able to negotiate a ceasefire between the opposing sides in that civil war, President Obama plans to pour gasoline on the fire by sending in the US military. The ceasefire agreement signed last week includes a demand that all foreign military forces leave Ukraine. I think that is a good idea and will go a long way to reduce the tensions. But why does Obama think that restriction does not apply to us?
Last week also saw the Senate confirm Ashton Carter as the new Secretary of Defense by an overwhelming majority. Carter comes to the Pentagon straight from the military industrial complex, and he has already announced his support for sending lethal weapons to Ukraine. Sen. John McCain’s strong praise for Carter is not a good sign that the new secretary will advise caution before undertaking new US interventions.
As we continue to teeter on the verge of economic catastrophe, Washington’s interventionists in both parties show no signs of slowing. The additional tens of billions or more that these new wars will cost will not only further undermine our economy, but will actually make us less safe. Can anyone point to a single success that the interventionists have had over the last 25 years?
As I have said, this militarism will end one way or the other. Either enough Americans will wake up and demand an end to Washington’s foreign adventurism, or we will go broke and be unable to spend another fiat dollar on maintaining the global US empire.
Obama’s Latin American Legacy
Re-Militarizing Honduras
By NICK ALEXANDROV | CounterPunch | February 13, 2015
Nearly a decade ago, a keen observer of Honduras produced a damning analysis of the country. “In a very real sense, Honduras is a captured state,” he began. “Elite manipulation of the public sector, particularly the weak legal system, has turned it into a tool to protect the powerful,” and “voters choose mainly between the two major entrenched political parties, both beholden to the interests of individuals from the same economic elite.” The situation required a “strategy that will give people the means to influence public policy,” the report concluded.
Its author was James Williard, the U.S. chargé d’affaires in Honduras in 2005. In the following years, Manuel Zelaya, the Honduran president from 2006-2009, formulated a strategy like the one Williard mentioned. The country’s rulers reacted by toppling Zelaya in June 2009, manipulating the feeble legal system to justify his overthrow. Washington feigned outrage, but then recognized the marred November 2009 national election, its 2013 follow-up—and heaped supplies on the military. About “half of all U.S. arms exports for the entire Western Hemisphere” went to Honduras in 2011, Martha Mendoza disclosed, referring to the $1.3 billion in military electronics that “neither the State Department nor the Pentagon” would explain.
Zelaya had planned to conduct a poll the day of the coup, to see whether the public desired a referendum on constitutional reform that November. “Critics said it was part of an illegal attempt by Mr. Zelaya to defy the Constitution’s limit of a single four-year term for the president,” New York Times reporter Elisabeth Malkin wrote immediately after the ouster.
That was the official line. But U.S. Ambassador Hugo Llorens had a different take. “The fact is we have no hard intelligence suggesting any consideration”—let alone effort—“by Zelaya or any members of his government to usurp democracy and suspend constitutional rule,” he wrote five days before the coup. Zelaya’s “public support” then was somewhere “in the 55 percent range,” with the poll’s as high as 75%. These figures signaled the nightmare. “Zelaya and his allies advocate radical reform of the political system and replacement of ‘representative democracy’ with a ‘participatory’ version modeled on President Correa’s model in Ecuador,” Llorens panicked.
He need not have. Repression crushed the hope of reform, and today’s Honduras recalls its 1980s death-squad heyday. The Constitution Zelaya allegedly violated dates from that era, and “contained perverse elements such as military autonomy from civilian control,” Michelle M. Taylor-Robinson explains, adding that “during the 1980s the military chief negotiated defense policy directly with the U.S. government and then informed the Honduran president of what was decided.”
General Gustavo Álvarez Martínez helmed the army until 1984. “Trained in Argentina, as he rose to power he openly declared to U.S. Ambassador Binns that he admired the Argentine methods used during the murderous Dirty Wars there and planned to use the same techniques in Honduras,” Jennifer Harbury notes. Álvarez wasn’t kidding. He proceeded to form Battalion 316, whose members the CIA and other U.S. intelligence agencies trained. One of its targets was union leader German Pérez Alemán. Battalion hit men forced him into a car on a busy street near Tegucigalpa’s airport, then killed him with torture. Journalist Oscar Reyes was another victim. “He was strung up naked and beaten ‘like a piñata,’” Harbury writes, while his wife, Gloria, “was given electrical shocks to the genitals that damaged her internal organs.”
Reagan dealt with Álvarez by awarding him the Legion of Merit in 1983. Now a new generation continues the Battalion’s work. “In the ’80s we had armed forces that were excessively empowered. Today Honduras is extremely similar,” activist Bertha Oliva stated, emphasizing that “the presence of the U.S. in the country was extremely significant” then, and is now. “Military personnel now control state institutions that in the 1990s were taken from them,” added Héctor Becerra, Director of the Honduran Committee for Free Expression.
One example is the Public Order Military Police (PMOP, in Spanish), first deployed weeks before the 2013 election. That October 10, it “raided the home of Marco Antonio Rodriguez, Vice President of SITRAPANI (National Child Welfare Agency Workers’ Union),” then “broke down the doors” of seasoned activist Edwin Robelo Espinal’s home a few weeks later, human rights group PROAH reported. Several legislators opposed the law creating the PMOP. A top Honduran human rights official declared it unconstitutional. But not only was its champion, ex-Congressman Juan Orlando Hernández, allowed to retain his position—he’s now president.
And “since taking office in January 2014 [he] has presided over several deployments of soldiers and expanded the PMOP,” the Security Assistance Monitor points out. PROAH reviews some case studies in citizen security, like one “where the police have been complicit in the kidnapping and torture of two fishermen, and another where soldiers were directly responsible for the torture of two miners.” A former police agent, in a sworn statement, described other experiments in sadism “that implicate top level commanders of the national security forces,” according to TeleSUR. A “woman was taken to a security house in the exclusive Trejo neighborhood, interrogated for 48 hours, hanged and disappeared,” for example. The agent also recounted how his team had abducted three gang members, who “were tortured and killed. They were then decapitated and their bodies appeared in different parts of the city. A different head was placed on each body to make it more difficult to identify the person killed.”
International policy expert Alexander Main writes that U.S. support for Honduran militarization has been not only “tacit”—seen in “the steady increase of U.S. assistance to national armed forces” since the coup—but also “direct.” A DEA Foreign-deployed Advisory Support Team (FAST), for example, “set up camp in Honduras to train a local counternarcotics police unit” from 2011-2012. U.S. and Colombian Special Forces later instructed “a new ‘elite’ police unit called the Intelligence Troop and Special Security Group” (TIGRES, in Spanish). When $1.3 million vanished in a drug raid last year, evidence emerged implicating dozens of TIGRES members. It seems the training paid off.
We can say the same of U.S. efforts to shape Honduran society. The “military simply did not exist in any institutionalized form” there for much of the 20th century, Kirk Bowman observes. This situation changed after the U.S. and Honduran governments signed a Bilateral Treaty of Military Assistance in May 1954. We see the outcomes today. The journalists gunned down by passing assassins, the poor farmers stalked and murdered for defending their land—this is as much a part of Obama’s Latin America legacy as his celebrated Cuba thaw.
Nick Alexandrov lives in Washington, DC. He can be reached at: nicholas.alexandrov@gmail.com.
Poland to spend $42 billion on military buildup
Press TV – February 15, 2015
Poland, a NATO member, has launched an unprecedented multi-billion military spending spree amid tensions between the Western military alliance and Russia over the crisis in Ukraine.
Warsaw has reportedly earmarked 33.6 billion euros (USD 42 billion) to upgrade its military equipment over a decade, including a missile shield and anti-aircraft systems as well as combat drones.
The largest purchase is seventy multi-role helicopters worth 2.5 billion euros, while the Eastern European NATO member also plans to buy armored personnel carriers, submarines and cruise missiles.
The cruise missiles would reportedly enable the Polish air force to attack targets in Russia without having to leave their own airspace.
Polish Defense Minister Tomasz Siemoniak has said that the military boost is a reaction to the crisis in neighboring Ukraine, which he has described as the biggest security threat to Europe since the end of the Cold War.
NATO expansion in Eastern Europe
The move also comes as NATO is planning to expand its military presence in Eastern Europe amid the Ukraine crisis.
The defense ministers of NATO’s 28 member states agreed on February 5 to establish six new command and control posts in the Eastern European nations of Estonia, Latvia, Lithuania, Poland, Bulgaria and Romania.
NATO also decided to set up a new headquarters in western Poland to support northeastern member states as well as a similar site in Romania for members in southeastern Europe.
The military alliance has over the past year increased its presence and conducted several exercises in Eastern Europe amid the crisis in Ukraine. In 2014, NATO forces held some 200 military exercises and the alliance’s General Secretary Jens Stoltenberg has promised that such drills would continue.
Moscow has repeatedly condemned NATO’s exercises and military buildup toward its borders.
Last week, Russian Foreign Minister Sergei Lavrov said NATO’s move provokes confrontation and undermines European security.
Russia’s Chief of the General Staff of the Armed Forces Valery Gerasimov announced last month that Moscow plans to boost its military capabilities in the Crimean peninsula, the Arctic and the westernmost Kaliningrad region, amid NATO build-up in Eastern Europe.
NATO-Russia relations
Relations between Russia and NATO strained after Ukraine’s Crimea re-integrated into the Russian Federation following a referendum on March 16, 2014. The military alliance ended all practical cooperation with Russia over the ensuing crisis in Ukraine last April.
Russia approved last December an updated version of the country’s military doctrine which considers NATO military buildup as a major foreign threat against its national security.
The United States and its European allies accuse the Kremlin of destabilizing Ukraine and have imposed a number of sanctions against Russian and pro-Moscow figures. Russia, however, rejects the accusation and has retaliated with sanctions of its own.
Ms. Merkel and Peace
By Dagmar Henn | Oceania Saker | February 12, 2015
What a lot of theatrical activity during the last days — Angela Merkel’s hasty trip to Kiev and Minsk (carrying Hollande as hand luggage), and then the appearances at the Munich “Security Conference” … truly a heroic effort to save peace? That at least is what we are expected to think.
But how realistic is this idea? Is that possibly what she honestly wants?
Actually there are simple criteria to test her interest in peace — sober, technical criteria.
One can assume that all European governments, including Ms Merkel’s, are well informed about the real situation in the Donbass. In public they talk about the ‘evil separatists’, but they do know that the Ukrainian army shells the cities. They know the extent of destruction and they know who is responsible. Why? Because OSCE delivers this information daily to their desks. Publicly the OSCE acts as though it is not capable of calculating from the remains of a rocket stuck in the ground the direction from which it came. The reality is different. We can assume that all the atrocities committed by the Ukranian regime throughout the last months are well known. That includes the humanitarian situation in the Donbass.
That means, they know the consequences a closure of the Russian border would have under the present conditions — that it would not only cut off military supplies for the militias, but also any humanitarian support by Russia. They know that such a step would be impossible, and that any reasonable person could consider it only if the menace from the other side were to disappear. That it would require a completely different government in Kiev, also where it’s military power is concerned. Recently a retired Russian General said it explicitly in an interview with the Süddeutsche Zeitung: “Don’t you Europeans understand that? Closing the border would mean the physical extermination of a significant part of the Donbass population.”
Throughout all these months just one single phrase could be heard from Merkel and Steinmeier regarding the Minsk agreement. Nothing about the continued shelling of Donbass cities. Nothing about the difficulties regarding the exchange of POWs. Nothing about the blockade of humanitarian assistance through Kiev. Nothing about the use of forbidden weapons. Nothing about Kiev’s refusal to discuss a line of demarkation, nothing about non-withdrawal of heavy armaments. Just one single phrase was repeated over and over again: Russia must close its border to the Donbass.
Did anything change? Did the position towards the Kiev junta change? You can listen to Merkel’s speech at the ‘Security Conference’ – no, there has been no change. Not by a single inch did she criticize the rulers of Kiev, never mind coming closer to any mention of the realities. Instead she explicitly repeated the demand that the border be closed . She still demands that the Donbass become a Gaza Strip on speed.
But she is against arms deliveries to Kiev. Couldn’t that be considered some kind of peaceful intent?
Not at all. She gives some reasons why she doesn’t want to take that step. First: it doesn’t make sense. More weapons won’t enable the junta to win. That’s a point where — exceptionally — she is right. Second: she says quite clearly she would give preference to economic warfare. That’s an area where the German government is truly experienced and successful; several European neighbour countries can tell the tale. Anyone who wants to know a bit more about the effects of German economic warfare should watch the Greek documentary Agora (which was broadcast by the German channel WDR on 05.02). Third (and this is what she actually said): there isn’t sufficient control over public opinion. (One can try to imagine on his/her own what that means regarding our remaining democratic rights; months of uninterrupted propaganda don’t seem sufficient to Ms Merkel, she demands more).
The arguments she cites in calling for “peaceful” alternatives, seem to be purely decorative. The West, she says, won the Cold War through persistence and because it offered “more prosperity to those who made more of an effort”. Even Ms. Merkel should realize that those times are gone and the promises of prosperity have been museum ripe for some time already.
At this point we must consider the same probability as we faced regarding the conflict situation in the Donbass. Ms Merkel may tell a certain story. But she must know better. She knows about the gigantic black hole of fictional capital which has been thrown at one country after the other. She knows what was done to the people of Greece, Portugal, Spain, Ireland and so on, in order to save the German banks. She was one of the people that arranged it. So she also knows that the attractiveness of the West is somewhat limited, to put it diplomatically. So these sentences are pure propaganda. It’s a game which cannot be repeated.
But if the idea, that she and her US allies could reach their goals by ‘peaceful means’ via a remake of the Cold War, is a fiction, and yet there seems to be no moving away from the goal of Russia’s submission, where is the difference between them and the USA?
That is the one thing she didn’t spell out.
Now, let’s take a short diversion. Some believe this ‘Security Conference’ trip was caused by fear. Merkel and Hollande had suddenly realized that they would not escape unscathed in a real war against Russia. They would try now to save their own skins (and possibly even ours).
It wasn’t only the interview in the Süddeutsche. Sometimes one gets the impression that the Russian side tries to explain very slowly three times to intellectually challenged people of Berlin the effects of what they are actually doing at the moment. I would consider the interview with Fedorov in this context — a kind of tedious pedagogic effort. Could it be that Merkel saw this video and became deeply frightened, when she heard that in case of a Ukrainian attack against Russia “Washington and Berlin would be burned to ashes”?
Well, some decades ago someone, after meeting Merkel — at that time minister of enviromental issues — commented that she is not any more intelligent than her appearance suggests. But it would need someone incapable to count up to three not to understand that we are talking about a real and massive risk of a nuclear war. This risk has existed since the day of the coup in Kiev, and we have escaped it twice already — through the reunification of the Crimea with Russia, and through the uprising in the Donbass, which has up to now prevented an attack of the junta against the Crimea.
So even if this specific question more or less escaped public attention until today, and now suddenly becomes so acute that even Der Spiegel remembers it, the leading players in Germany must have realised this tiny problem right from the start. (And they should have been able to imagine what it might mean if creatures like members of the Right Sector gained access to nuclear weapons, which might have happened, had their access to the Crimea not been blocked so promptly).
So let’s go back to what Merkel didn’t spell out.
She said Washington’s idea to deliver weapons would be foolish playing around without any practical use. She hinted at the possibility that ‘diplomatic efforts’ (the phrase used repeatedly for the same blackmailing) might be doomed to fail. She should know that the possibilities for economic warfare have far greater limitations than is apparent.
So what is left? Sending troops?
In that connection her remark about ‘hybrid warfare’ and her opinion that better control of public opinion is needed suddenly makes sense. For the installation of sanctions, the small amount of freedom of thought remaining outside of corporate media was not a menace. But the intention to send the residents of this country personally to the front, to the war zone, that could cause greater resistance — the people might develop foolish ideas.
She wants to win time, in order to strangle any opposition, and then to act in whatever way she thinks is efficient. Which goes much further than the delivery of weapons. But for that she first needs a ceasefire… somehow.
For months, Merkel and Obama seem to have been following a good cop/bad cop scenario. It looks about the same considering the Cease fire/Weapons delivery alternatives. But what guarantee is there that the one acting as the good cop is actually the good guy?
Right, there is none.
For those who believe the German government is being forced into this position — any politician who has a bit of experience is capable of saying one thing and meaning the opposite. He/she understands the technique of pinning undesirable statements onto others; also, how to counter one coercion by another one that they might have set in scene themselves. At all these levels it is as if nothing had happened. They intend it like that. There is no reason at all to let them escape responsibility.
PPS. In the sense that Fedorov in this case may be something like a semi-official channel in the interview, the nasty attack that Elmar Brock made against Lavrov at the Munich conference might be considered a semi-official attack by Merkel. Brock is the political mouthpiece of Bertelsmann, Germany’s big media corporation, and Bertelsmann-owner Liz Mohn is Merkel’s close friend. No wonder that Lavrov nearly lost patience at that moment.
UK dispatches troop carriers to Ukraine
Press TV – February 14, 2015
Britain has delivered a number of troop transporters to Ukraine as fighting rages on unabated in the eastern parts of the former Soviet country despite a peace deal.
Ukrainian media reported on Friday that 20 British Saxon armored vehicles were handed in to Kiev, with another 55 expected to arrive soon.
The UK’s Ministry of Defense (MoD) said that the vehicles were transferred by a private firm under a 2013 deal with the eastern European country.
The troop carriers were first used by the MoD in the 1980s, but went out of service some three years ago, according to an MoD spokesperson.
The spokesperson stressed that the British government has been supplying “non-lethal assistance” to the Ukrainian army since the beginning of the crisis in the country.
“There has been no change to this and we have not provided lethal assistance. These vehicles were provided unarmed under a commercial contract dating 2013 by a private company,” the spokesperson added.
Earlier this week, British Foreign Secretary Philip Hammond also noted that London was keeping under review a decision not to arm Ukraine, adding it could not allow the Ukrainian army to collapse.
This is while Russia has repeatedly criticized plans by Western countries to supply weapons to Ukraine, saying it would only aggravate the situation in the country’s restive provinces.
The UK’s decision to send troop carriers to Ukraine came one day after Kiev reached a ceasefire agreement with pro-Moscow forces operating in the country’s volatile east following marathon peace talks in the Belarusian capital, Minsk, with leaders of Russia, Germany and France.
The mainly Russian-speaking regions of Donetsk and Lugansk in eastern Ukraine have been the scene of deadly clashes between pro-Russia activists and the Ukrainian army since Kiev launched military operations to silence protests there in mid-April 2014.
More than 5,500 people have died and some 12,200 wounded in the conflict, the UN says. Around 1.5 million people have been also forced from their homes over the past months of turmoil.
Ukraine ultranationalist leader rejects Minsk peace deal, vows ‘to continue war’
RT | February 13, 2015
Ukraine’s Right Sector leader Dmitry Yarosh said his radical movement rejects the Minsk peace deal and that their paramilitary units in eastern Ukraine will continue “active fighting” according to their “own plans.”
The notorious ultranationalist leader published a statement on his Facebook page Friday, saying that his radical Right Sector movement doesn’t recognize the peace deal, signed by the so-called ‘contact group’ on Thursday and agreed upon by Ukraine, France, Germany and Russia after epic 16-hour talks.
Yarosh claimed that any agreement with the eastern militia, whom he calls “terrorists,” has no legal force.
In his statement, Yarosh claimed that that the Minsk deal is contrary to Ukraine’s constitution, so Ukrainian citizens are not obliged to abide by it. Thus if the army receives orders to cease military activity and withdraw heavy weaponry from the eastern regions, the Right Sector paramilitaries, who are also fighting there “reserve the right” to continue the war, he said.
The Right Sector paramilitary organization continues to deploy its combat and reserve units, to train and logistically support personnel, while coordinating its activities with the military command of the Ukrainian army, paramilitary units of the Defense Ministry and the Interior Ministry, he said.
The breakthrough Minsk agreement was reached on Thursday following marathon overnight negotiations between Ukraine, France, Germany and Russia, and offer hope the fighting in Eastern Ukraine may come to an end. The talks were part of a Franco-German initiative. President Francois Hollande and Chancellor Angela Merkel visited Kiev and Moscow before meeting the Russian and Ukrainian leaders at the negotiating table in Minsk.
READ MORE: Right Sector refuses to obey Ukraine’s Defense Ministry – presidential aid
EU and Russia: No option but peace and coexistence
The BRICS Post | February 13, 2015
At the moment of writing, the ink on the second Minsk agreement has not yet dried.
On February 15, fighting is supposed to come to an end in Ukraine. What are the chances for success of this agreement and what’s in it for the EU and Russia?
Are we on the path to a new peace or to a new cold/hot war? That is the question that will be on the minds of many in the days to come.
There are too many uncertain factors to reliably predict what will happen. The EU and the US have different agendas, and one can even make a case that they have conflicting interests.
For Russia, a peaceful resolution to the conflict means ending the sanctions and facilitating closer economic cooperation with the EU.
But tighter economic relations with Russia, the natural hinterland of Europe, goes against the core of the transatlantic NATO alliance. This has been a nightmare scenario for the Washington elite since 1945.
Pointedly, neither the US nor the UK were involved in the Minsk negotiations, so for Washington all options are still on the table. Considering the warmongering majority in the US Congress, that is not a good omen for peace.
Then there is the matter of the government in Kiev. Hardly ever mentioned in the news, it is far from stable. Extremist militias who do not bother to hide their fascist ideologies have been integrated into the Ukrainian army.
Considering their behaviour on the battlefield so far, it is very doubtful that Kiev will be able to make them abide by the ceasefire conditions.
Besides the extremists in their own ranks, the Kiev government faces another problem – young Ukrainian men in the west are bitterly resisting military conscription. This is not to say that they sympathize with their compatriots in the east – they just do not want to die fighting them.
Furthermore, there is the inner political struggle for power.
While President Petro Poroshenko is more than willing to find a pragmatic solution to the conflict, his prime minister Arseniy Yatsenyuk, however, is a fanatic Ukrainian nationalist, who is not a man of compromise.
He wants total victory and would be more then happy to replace his president.
Then there are the rebels in Eastern Ukraine, the so-called ‘pro-Russian separatists’.
Western media make it look like they are mere pawns in Putin’s hands, but that is hardly the case.
Nobody denies that Russia is giving them ample logistic support, but the leaders of the resistance are very unreliable. Will they accept the ceasefire? Hard to tell.
First step toward peace
Yet, despite all these challenges, history shows that worse situations have led to lasting peace.
The second Minsk agreement might just work. It is only a first step, and a peaceful long-term resolution of the conflict is still to be negotiated, but it is the only way out for the EU, Russia and Ukraine.
One of the reasons it might just work is precisely that the EU alone brokered it, or rather Germany and France, and not the US. That might seem contradictory given the different variables mentioned above, but it’s not. It all depends on who and what will prevail.
The real issues are still on the table – disarmament and federalization of the country. If the EU really wants it, Brussels has the financial leverage to force Kiev’s hand in accepting a new constitution granting the eastern regions meaningful autonomy.
The EU has experience with forging complex compromise solutions. After all, the EU itself is a permanent compromise.
What is really at stake is much more than just an end to an internal conflict stoked by outside forces. A resumption of violence carries with it the risk of an all out war between nuclear powers.
This is about a possible major war on European soil.
Border control
Hence, peace is the only option for Europe and Russia.
Personally, I consider one of the last paragraphs in the Minsk agreement, which focuses on control of the border, the most difficult one.
Kiev wants to regain full control of the border between the eastern provinces and Russia. This may at first appear to be a technicality, but it isn’t. Control of the border is highly symbolic, for all parties involved.
Kiev’s control of the border would impede Russia’s direct influence on the ground; for the rebels it would symbolize a partial surrender. The only party that stands to gain from this paragraph in the agreement is Kiev, which would have been delivered a highly symbolic victory.
A reasonable option would be to deploy UN troops on the border. Russia has proposed it, but apparently it was not on the negotiating table in Minsk.
While the Cold War has prevented Europe and Moscow from peaceful coexistence on their common continent, peace in Ukraine might just open up the whole Russian hinterland to the European economy.
At the end, it boils down to two options: The renewal of the old transatlantic pact with the ally overseas leading to a new Cold War (that could turn very nasty), or peace and coexistence with Russia.

