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Paul Merrell

A Distorted Lens Justifying An Illegitimate Ukrainian Government - 0 views

  • Support it or oppose it, a coup d’état took place in Kiev after an EU-brokered agreement was signed by the Ukrainian government and the mainstream opposition on Feb. 21. The agreement called for power sharing between both sides through the formation of a national unity government and for an end to the opposition-led street protests in Kiev. President Viktor Yanukovych ordered the Ukrainian police and security forces to withdraw from their positions, and even earlier, he had made multiple concessions to the opposition leadership. Instead of keeping its end of the bargain, the Ukrainian mainstream opposition executed a coup through the use of violence by organized ultra-nationalist gangs, which some analysts have compared to stay-behinds or secretive militias that were created by NATO during the Cold War. These armed ultra-nationalist groups took over administrative bodies in Ukraine and fought until they managed to oust the Ukrainian government and opened the path for opposition leaders to take power on Feb. 25. The Ukrainian mainstream opposition used the EU-brokered agreement, which the Brussels-based European Commission deliberately refused to enforce, as a means of justifying the formation of a coup-imposed government.
  • In the absence of almost half the Ukrainian Verkhovna Rada, or Ukrainian Parliament, the opposition parties began to arbitrarily pass unconstitutional laws. They also unconstitutionally selected Oleksandr/Aleksandr Valentynovych Turchynov as the acting president of Ukraine before President Viktor Yanukovych was even impeached. Intimidation and violence were additionally used to secure the cooperation of any disagreeing parliamentarians or state officials in Kiev. Saying that the ultra-nationalists and fascists are marginal elements, the mainstream media networks in North America and the European Union have simply dismissed the armed ultra-nationalist groups involved in the coup that are presently integrated into the putsch regime running Kiev. The militant ultra-nationalists, however, are very influential and amassing power under the illegal premiership of Arseniy Yatsenyuk.  Yatsenyuk, himself, is from Yulia Tymoshenko’s notoriously corrupt All-Ukrainian Union Fatherland Party (Batkivshchyna) and essentially a U.S. and EU appointee. There is even a pre-coup leaked telephone interception, likely either recorded by the intelligence services of Russia or Ukraine, in which U.S. Assistant Secretary of State Victory Nuland says that Yatsenyuk will be appointed as the prime minister of the Ukrainian government that the U.S. is putting together.
  • It is unlikely that Yatsenyuk and the loosely-knit alliance of the governing parties that ran Ukraine under the Yushchenko-Tymoshenko governments, foreign-based Ukrainians, and the forces behind the Orange Revolution that form the Orangist camp which he belongs to could have gotten back into power in Ukraine without pressure, the use of force and foreign backing. Yatsenyuk was even threatened and booed by the Ukrainians gathered at Independence Square when it was announced that he would be appointed as the prime minister of the post-coup government. A vast segment of the protesters made it clear that Tymoshenko, Yatsenyuk’s party leader, was no alternative to the ousted President Viktor Yanukovych in their eyes, either, when it was announced that she wanted to run for prime minister. The Orangists do not have the support of a majority of the population, nor did they form the parliamentary majority in the Verkhovna Rada. Their Orangist president, Viktor Yushchenko, only got 5 percent of the vote in January 2010, in a show of no-confidence, whereas Viktor Yanukovych won the first and second rounds of the presidential elections in 2010. According to Victoria Nuland, the U.S. has also poured $5 billion into “democracy promotion” inside Ukraine. This is U.S. State Department doublespeak for politicized funding that Washington has sent to Ukraine to organize the Orange Revolution and its Euromaidan sequel or what can frankly be described as regime change.
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  • To rule Ukraine once more, the Orangists and their foreign backers have used and manipulated the ultra-nationalist elements of the population — some of which are openly anti-European Union — as their foot soldiers in an application of force against their democratically-elected opponents. Despite their views, the ultra-nationalists are actually more honest than the Orangist liberal figures like Arseniy Yatsenyuk. Unlike the misleading and utterly corrupt Orangist leaders, the ultra-nationalists do not hide their agendas and platforms.
  • The ultra-nationalists have inconsolably anti-Russian attitudes. Many of them also dislike a vast spectrum of other groups, including Jews, Armenians, Roma, Poles, Tatars, supporters of the Party of Regions and communists. In this context, it should come as no surprise that one of the first decisions that the post-coup regime in Kiev made was to remove the legal status of the Russian language as the regional language of half of Ukraine. Right Sector is, itself, a coalition of militant ultra-nationalists. These militants were instrumental in fighting government forces and taking over both government buildings in Kiev and regional governments in the western portion of Ukraine. Despite the protests of First Deputy Defense Minister Oleynik, Deputy Defense Minister Mozharovskiy and Defense Minister Babenk, Arseniy Yatsenyuk’s post-coup government has even given the ultra-nationalist opposition militias official status within the Ukrainian military and security forces. Yatsenyuk and the Orangists also dismissed all the officials that protested that the move would fracture the country and make the political divide in Ukraine irreversible.
  • Several members of Svoboda have been given key cabinet and government posts. One of the two junior deputy prime ministers, or assistant deputy prime ministers, is Oleksandr Sych. The ministry of agriculture and food has been given for management to Ihor Shvaika. The environment and natural resources ministry has been assigned to Andry/Andriy Mokhnyk. The defense minister is Ihor Tenyukh, a former admiral in the Ukrainian Navy who obstructed Russian naval movements in Sevastopol during the Russo-Georgian War over South Ossetia and who was later dismissed by the Ukrainian government for insubordination. Oleh Makhnitsky, another member of Svoboda, has been assigned as the new prosecutor-general of Ukraine by the coup government. Andry Parubiy, one of the founders of Svoboda, is now the post-coup secretary of the National Security and Defense Council of Ukraine (RNBO). He was the man controlling the so-called “Euromaidan security forces” that fought government forces in Kiev. His job as secretary is to represent the president and act on his behalf in coordinating and implementing the RNBO’s decisions. As a figure, Parubiy clearly illustrates how the mainstream opposition in Ukraine is integrated with the ultra-nationalists. Parubiy is an Orangist and was a leader in the Orange Revolution. He has changed parties several times. After founding Svoboda, he joined Viktor Yushchenko’s Our Ukraine before joining Yulia Tymoshenko’s Fatherland Party and being elected as one of the Fatherland Party’s deputies, or members of parliament.
  • While the mainstream media in North America and the EU look the other way about the ultra-nationalists in the coup government in Kiev, the facts speak for themselves. Both the EU and the U.S. governments have rubbed their elbows with the ultra-nationalists. Oleh Tyahnybok, the leader of Svoboda (formerly the Social Nationalist Party of Ukraine), was even part of the opposition triumvirate that all the U.S. and EU officials visiting Kiev met with while performing their political pilgrimages to Ukraine to encourage the protesters to continue with their demonstrations and riots demanding Euro-Atlantic integration. Svoboda has popularly been described as a neo-Nazi grouping. The World Jewish Congress has demanded that Svoboda be banned. The ultra-nationalist party was even condemned by the EU’s own European Parliament, which passed a motion on Dec. 13, 2012 categorically condemning Svoboda.
  • The ultra-nationalists are such an integral part of the mainstream opposition that the U.S.-supported Orangist president of Ukraine, Viktor Yushchenko, posthumously awarded the infamous Nazi collaborator Stepan Bandera the title and decoration of the “Hero of Ukraine” in 2010. Foreign audiences, however, would not know that if they relied on reportage from the likes of the U.S. state-run Radio Free Europe, which tried to protect Yushchenko because he wanted to reorient Ukraine toward the U.S. and EU. Parubiy also lobbied the European Parliament not to oppose Yushchenko’s decision. Other smaller ultra-nationalists parties were also given government posts, and several of the independent cabinet members are also aligned to these parties. Dmytro Yarosh from Right Sector (Pravyi Sektor) is the deputy secretary of the RNBO, and the Trizub Party was given the education ministry. Trizub had Sergey Kvit appointed to the post of education minister.
  • The role of the ultra-nationalists in executing the coup has been essentially ignored by the mainstream media in North America and the EU. The roots of the bloodshed in Kiev have been ignored, too. The shootings of protesters by snipers have simply been presented as the vile actions of the Ukrainian government, never taking into consideration the agitation of the armed ultra-nationalist gangs and the mainstream opposition leaders for a conflict. According to a leaked telephone conversation on Feb. 26 between Estonian Foreign Minister Urmas Paet and European Union Commissionaire Catherine Ashton, which was leaked by the Security Service of Ukraine (SBU) , the snipers who shot at protesters and police in Kiev were allegedly hired by Ukrainian opposition leaders. Estonian Foreign Minister Paet made the statements on the basis of details he was given by one of the head doctors of the medical team of the anti-government protests, Olga Bogomolets, an opponent of Viktor Yanukovych’s government who wanted it removed from power. Paet tells Ashton the following first: “There is now stronger and stronger understanding that behind the snipers, it was not Yanukovych, but it was somebody from the new coalition.” This is also corroborated by the fact that Yanukovych actually had ordered the Ukrainian riot police and security forces not to use lethal force.
  • The Estonian official then mentions that it was verified to him that the same snipers were killing people on both sides. He tells Ashton the following: “And second, what was quite disturbing, this same Olga [Bogomolets] told as well that all the evidence shows that the people who were killed by snipers from both sides, among policemen and then people from the streets, that they were the same snipers killing people from both sides.” Another important point that Paet makes to Ashton is the following: “[Dr. Olga Bogomolets] then also showed me some photos she said that as a medical doctor she can say that it is the same handwriting, the same type of bullets, and it’s really disturbing that now the new coalition, that they don’t want to investigate what exactly happened.” Past reports that the mainstream media were hostile to the ousted Ukrainian government also raise serious questions that corroborate what has been said about the snipers intentionally killing protesters to instigate regime change.
  • The Telegraph reported on Feb. 20 that “[a]t least three of the bodies displayed single bullet wounds to the heads,” and “were shot in the head, the neck or the heart. None were shot anywhere else like in the legs.” This means that the snipers were making kill shots by design, which seems like the last thing that the Ukrainian government would want to do when it was trying to appease the protesters and bring calm to Kiev. The Ukrainian journalist Alexey Yaroshevsky’s account of the sniper shootings is also worth noting, and it is backed up by footage taken by his Russian crew in Kiev.  Their footage shows armed opposition members running away from the scene of the shooting of anti-government protesters. What comes across as unusual is that the armed members of the opposition were constantly agitating to start firefights at every opportunity that they could get.
  • The commandant of the SSU, Major-General Oleksandr Yakimenko, has testified that his counter-intelligence forces were monitoring the CIA in Ukraine during the protests. According to the SSU, the CIA was active on the ground in Kiev and collaborating with a small circle of opposition figures. Yakimenko has also said that it was not the police or government forces that fired on the protesters, but snipers from the Philharmonic Building that was controlled by the opposition leader Andriy Parubiy, which he asserts was interacting with the CIA. Speaking to the Russian media, Yakimenko said that 20 men wearing “special combat clothes” and carrying “sniper rifle cases, as well as AKMs with scopes” ran out of the opposition-controlled Philharmonic Building and split into two groups of 10 people, with one taking position at the Ukraine Hotel. The anti-government protesters even saw this and asked Ukrainian police to pursue them, and even figures from Right Sector and Svoboda asked Yakimenko’s SSU to investigate and apprehend them, but Parubiy prevented it. Major-General Yakimenko has categorically stated that opposition leaders were behind the shootings. Following the release of the conversation between Paet and Ashton, the Estonian Foreign Ministry confirmed that the leak was authentic, whereas the European Commission kept silent. The mainstream media in North America and the EU either ignored it or said very little. The Telegraph even claimed that Dr. Bogomolets told it that she had not treated any government forces even though she contradicts this directly in an interview with CNN where says she treated military personnel.
  • CNN, on the other hand, quickly glossed over the story, giving it only enough attention to create the impression that the network is fairly covering the news. Opting not to give the story the airtime that it deserved, CNN instead posted it on its webpage. The conversation is immediately discredited, undermined and dismissed in the first sentence of the article, which is attributed to Foreign Minister Paet: “Don’t read too much into the conversation.” The article was deliberately structured by CNN to undermine the important information that would challenge the narrative that the U.S. mainstream media have been painting. The title, sub-titles and opening sentences of most texts act as microcosms or summaries of the articles, and in many cases, readers evaluate or decide to read the articles on the basis of what these texts communicate. Moreover, the first sentence of the article sets the tempo for readers and and influences their opinion, too. Although anyone who listens to the conversation between Paet and Ashton and considers the evidence that is being discussed would realize just how important the news was, the message being set forth by CNN was a dismissive one.
Gary Edwards

CARPE DIEM: Anti-Keynesian Supply Side Tax and Spending Cuts in Sweden, and the Finance... - 0 views

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    Sweden's Finance Minister Anders Borg is proving that Krugman and all those Keynesian big time stimulous spenders are wrong.  Reagan supply-side economics works every time it's tried.  And Sweden is proving it every day.  Instead of borrowing to stimulate, Borg flattened and cut taxes while gutting unsustainable government welfare spending.  Put the productive resources in the hands of those who are productive, and magic happens.  Capitalism has a home in Sweden, of all places. excerpt: "When Europe's finance ministers meet for a group photo, it's easy to spot the rebel - Anders Borg (pictured above) has a ponytail and earring. What actually marks him out, though, is how he responded to the crash. While most countries in Europe borrowed massively, Borg did not. Since becoming Sweden's finance minister, his mission has been to pare back government. His 'stimulus' was a permanent tax cut. To critics, this was fiscal lunacy. Borg, on the other hand, thought lunacy meant repeating the economics of the 1970s and expecting a different result. Three years on, it's pretty clear who was right. "Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus," he says. "Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt." Tax-cutting Sweden, by contrast, had the fastest growth in Europe last year, when it also celebrated the abolition of its deficit. The recovery started just in time for the 2010 Swedish election, in which the Conservatives were re-elected for the first time in history.
Paul Merrell

TASS: Economy - Greece to confirm construction of natural gas pipeline jointly with Rus... - 0 views

  • Greece supports the plan of building a natural gas pipeline jointly with Russia to be an extension of the Turkish Stream gas pipeline, new Minister of Productive Reconstruction, Environment and Energy of Greece Panos Skourletis said on Monday at the ceremony of responsibilities’ handover from the former minister Panagiotis Lafazanis. Skourletis said the plan of building a new Greek-Russian gas pipeline in the territory of Greece is supported. It opens new opportunities to be used, the minister said. This pipeline is more beneficial for Greece than the planned Trans-Adriatic Pipeline (TAP), Lafazanis said earlier. "The Russian project will provide more benefits because Greece will own a 50% stake in the pipeline and because tariffs will be higher," the ex-minister added. Greek state-owned Energy Investments Public Enterprise S.A. (EIPE S.A.) and Russia’s VEB Capital will be partners in the project. Investments into construction will amount to $2 bln. The project will be 100% financed by the Russian side and will make possible to create 20,000 jobs in Greece. The parties signed the intergovernmental memorandum on cooperation within the framework of building the Turkish Stream gas pipeline extension in Greece at the St. Petersburg International Economic Forum on June 19. Construction of the segment is to start in 2016 and will end at the turn of 2019.
  • Greece supports the plan of building a natural gas pipeline jointly with Russia to be an extension of the Turkish Stream gas pipeline, new Minister of Productive Reconstruction, Environment and Energy of Greece Panos Skourletis said on Monday at the ceremony of responsibilities’ handover from the former minister Panagiotis Lafazanis. Skourletis said the plan of building a new Greek-Russian gas pipeline in the territory of Greece is supported. It opens new opportunities to be used, the minister said. This pipeline is more beneficial for Greece than the planned Trans-Adriatic Pipeline (TAP), Lafazanis said earlier. "The Russian project will provide more benefits because Greece will own a 50% stake in the pipeline and because tariffs will be higher," the ex-minister added.
  • Greek state-owned Energy Investments Public Enterprise S.A. (EIPE S.A.) and Russia’s VEB Capital will be partners in the project. Investments into construction will amount to $2 bln. The project will be 100% financed by the Russian side and will make possible to create 20,000 jobs in Greece. The parties signed the intergovernmental memorandum on cooperation within the framework of building the Turkish Stream gas pipeline extension in Greece at the St. Petersburg International Economic Forum on June 19. Construction of the segment is to start in 2016 and will end at the turn of 2019.
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    See also http://tass.ru/en/infographics/7275 (Gazprom to eliminate gas pipelines to Europe via Ukraine during 2018). 
Gary Edwards

Google News - 0 views

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    An incredible story is unfolding in Egypt where the new military government is digging through volumes of documents seized in raids on the Muslim Brotherhood. The documents are said to show that Barak Obama has been funneling Billions of dollars into the Muslim Brotherhood. excerpt: "Bare Naked Islam has done extensive reporting on the "bribes." The ... Evidence we have obtained lends credibility to the charges of "gifts" (bribes) being taken in U.S. dollars from the U.S. Embassy in Cairo" that were distributed to top ministerial level officials in the Mursi government. Via Almesryoon: "A judicial source stated that over the past few days, a number of complaints have beenfiled with the Attorney General Hisham Barakat. These complaints accuse the leaders of the Muslim Brotherhood and leaders of the centrist party of receiving gifts from the American embassy in Cairo. The sponsors of these complaints stated that among these leaders are Mohamed Badie, General Guide of the Muslim Brotherhood, Khairat Al-Shater, deputy leader and businessman, Mohamed Beltagy leading the group, Essam el-Erian, deputy head of the Freedom and Justice Party of, and Abu Ela Mady, head of the Wasat Party, Essam Sultan, deputy head of the Wasat Party." The strength of these allegations is seemingly bolstered by another case alluded to by the newspaper in which a document is referenced. This document reportedly reveals monthly "gifts" being paid to Muslim Brotherhood leaders in Egypt by the Prime Minister Hamad bin Jassim bin Jabor Al Thani, Minister of Foreign Affairs to the Mursi government. These monthly payments were said to be denominated in U.S. dollars to each leader. Evidence for such allegations are substantiated by a document we have obtained. It includes the names of several recipients of funds and even includes their signatures acknowledging receipt of the funds. This ledger, obtained from inside the Mursi government, lends additional credibility to the rep
Paul Merrell

How 'Free Markets' Defame 'Democracy' | Consortiumnews - 0 views

  • Venezuela seems to be following Ukraine on the neocon hit list for “regime change” as Washington punishes Caracas for acting against a perceived coup threat. But a broader problem is how the U.S. conflates “free markets” with “democracy,” giving “democracy” a bad name, writes Robert Parry.
  • The one common thread in modern U.S. foreign policy is an insistence on “free market” solutions to the world’s problems. That is, unless you’re lucky enough to live in a First World ally of the United States or your country is too big to bully.So, if you’re in France or Canada or – for that matter – China, you can have generous health and educational services and build a modern infrastructure. But if you’re a Third World country or otherwise vulnerable – like, say, Ukraine or Venezuela – Official Washington insists that you shred your social safety net and give free reign to private investors.
  • If you’re good and accept this “free market” domination, you become, by the U.S. definition, a “democracy” – even if doing so goes against the wishes of most of your citizens. In other words, it doesn’t matter what most voters want; they must accept the “magic of the market” to be deemed a “democracy.”Thus, in today’s U.S. parlance, “democracy” has come to mean almost the opposite of what it classically meant. Rather than rule by a majority of the people, you have rule by “the market,” which usually translates into rule by local oligarchs, rich foreigners and global banks.Governments that don’t follow these rules – by instead shaping their societies to address the needs of average citizens – are deemed “not free,” thus making them targets of U.S.-funded “non-governmental organizations,” which train activists, pay journalists and coordinate business groups to organize an opposition to get rid of these “un-democratic” governments.
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  • If a leader seeks to defend his or her nation’s sovereignty by such means as requiring these NGOs to register as “foreign agents,” the offending government is accused of violating “human rights” and becomes a candidate for more aggressive “regime change.”Currently, one of the big U.S. complaints against Russia is that it requires foreign-funded NGOs that seek to influence policy decisions to register as “foreign agents.” The New York Times and other Western publications have cited this 2012 law as proof that Russia has become a dictatorship, while ignoring the fact that the Russians modeled their legislation after a U.S. law known as the “Foreign Agent Registration Act.”So, it’s okay for the U.S. to label people who are paid by foreign entities to influence U.S. policies as “foreign agents” – and to imprison people who fail to register – but not for Russia to do the same. A number of these NGOs in Russia and elsewhere also are not “independent” entities but instead are financed by the U.S.-funded National Endowment for Democracy (NED) and the U.S. Agency for International Development.
  • There is even a circular element to this U.S. complaint. Leading the denunciation of Russia and other governments that restrain these U.S.-financed NGOs is Freedom House, which marks down countries on its “freedom index” when they balk at letting in this back-door U.S. influence. However, over the past three decades, Freedom House has become essentially a subsidiary of NED, a bought-and-paid-for NGO itself.
  • That takeover began in earnest in 1983 when CIA Director William Casey was focused on creating a funding mechanism to support Freedom House and other outside groups that would engage in propaganda and political action that the CIA had historically organized and financed covertly. Casey helped shape the plan for a congressionally funded entity that would serve as a conduit for this U.S. government money.But Casey recognized the need to hide the CIA’s strings. “Obviously we here [at CIA] should not get out front in the development of such an organization, nor should we appear to be a sponsor or advocate,” Casey said in one undated letter to then-White House counselor Edwin Meese III – as Casey urged creation of a “National Endowment.” [See Consortiumnews.com’s “CIA’s Hidden Hand in ‘Democracy’ Groups.”]Casey’s planning led to the 1983 creation of NED, which was put under the control of neoconservative Carl Gershman, who remains in charge to this day. Gershman’s NED now distributes more than $100 million a year, which included financing scores of activists, journalists and other groups inside Ukraine before last year’s coup and now pays for dozens of projects in Venezuela, the new emerging target for “regime change.”
  • But NED’s cash is only a part of how the U.S. government manipulates events in vulnerable countries. In Ukraine, prior to the February 2014 coup, neocon Assistant Secretary of State Victoria Nuland reminded Ukrainian business leaders that the United States had invested $5 billion in their “European aspirations.”Nuland then handpicked who would be the new leadership, telling U.S. Ambassador Geoffrey Pyatt that “Yats is the guy,” referring to “free market” politician Arseniy Yatsenyuk, who not surprisingly emerged as the new prime minister after a violent coup ousted elected President Viktor Yanukovych on Feb. 22, 2014.The coup also started a civil war that has claimed more than 6,000 lives, mostly ethnic Russians in eastern Ukraine who had supported Yanukovych and were targeted for a ruthless “anti-terrorist operation” spearheaded by neo-Nazi and other far-right militias dispatched by the U.S.-backed regime in Kiev. But Nuland blames everything on Russia’s President Vladimir Putin. [See Consortiumnews.com’s “Nuland’s Mastery of Ukraine Propaganda.”]On top of Ukraine’s horrific death toll, the country’s economy has largely collapsed, but Nuland, Yatsenyuk and other free-marketeers have devised a solution, in line with the wishes of the Washington-based International Monetary Fund: Austerity for the average Ukrainian.
  • Before the Senate Foreign Relations Committee on Tuesday, Nuland hailed “reforms” to turn Ukraine into a “free-market state,” including decisions “to reduce and cap pension benefits, increase work requirements and phase in a higher retirement age; … [and] cutting wasteful gas subsidies.”In other words, these “reforms” are designed to make the hard lives of average Ukrainians even harder – by slashing pensions, removing work protections, forcing people to work into their old age and making them pay more for heat during the winter.‘Sharing’ the Wealth In exchange for those “reforms,” the IMF approved $17.5 billion in aid that will be handled by Ukraine’s Finance Minister Natalie Jaresko, who until last December was a former U.S. diplomat responsible for a U.S. taxpayer-financed $150 million investment fund for Ukraine that was drained of money as she engaged in lucrative insider deals – deals that she has fought to keep secret. Now, Ms. Jaresko and her cronies will get a chance to be the caretakers of more than 100 times more money. [See Consortiumnews.com’s “Ukraine’s Finance Minister’s American ‘Values.’”]
  • Other prominent Americans have been circling around Ukraine’s “democratic” opportunities. For instance, Vice President Joe Biden’s son Hunter was named to the board of directors of Burisma Holdings, Ukraine’s largest private gas firm, a shadowy Cyprus-based company linked to Privat Bank.Privat Bank is controlled by the thuggish billionaire oligarch Ihor Kolomoysky, who was appointed by the Kiev regime to be governor of Dnipropetrovsk Oblast, a south-central province of Ukraine. In this tribute to “democracy,” the U.S.-backed Ukrainian authorities gave an oligarch his own province to rule. Kolomoysky also has helped finance paramilitary forces killing ethnic Russians in eastern Ukraine.Burisma has been lining up well-connected American lobbyists, too, some with ties to Secretary of State John Kerry, including Kerry’s former Senate chief of staff David Leiter, according to lobbying disclosures.As Time magazine reported, “Leiter’s involvement in the firm rounds out a power-packed team of politically-connected Americans that also includes a second new board member, Devon Archer, a Democratic bundler and former adviser to John Kerry’s 2004 presidential campaign. Both Archer and Hunter Biden have worked as business partners with Kerry’s son-in-law, Christopher Heinz, the founding partner of Rosemont Capital, a private-equity company.” [See Consortiumnews.com’s “The Whys Behind the Ukraine Crisis.”]
Paul Merrell

Ukraine's Made-in-USA Finance Minister | Consortiumnews - 0 views

  • Ukraine’s new Finance Minister Natalie Jaresko, a former U.S. State Department officer who was granted Ukrainian citizenship only this week, headed a U.S. government-funded investment project for Ukraine that involved substantial insider dealings, including $1 million-plus fees to a management company that she also controlled. Jaresko served as president and chief executive officer of Western NIS Enterprise Fund (WNISEF), which was created by the U.S. Agency for International Development (U.S. AID) with $150 million to spur business activity in Ukraine. She also was cofounder and managing partner of Horizon Capital which managed WNISEF’s investments at a rate of 2 to 2.5 percent of committed capital, fees exceeding $1 million in recent years, according to WNISEF’s 2012 annual report.
  • Based on the data from WNISEF’s 2012 annual report, it also appeared that the U.S. taxpayers had lost about one-third of their investment in WNISEF, with the fund’s balance at $98,074,030, compared to the initial U.S. government grant of $150 million. Given the collapsing Ukrainian economy since the Feb. 22 coup, the value of the fund is likely to have slipped even further. (Efforts to get more recent data from WNISEF’s and Horizon Capital’s Web sites were impossible Friday because the sites were down.) Beyond the long list of “related party transactions” in the annual report, there also have been vague allegations of improprieties involving Jaresko from one company insider, her ex-husband, Ihor Figlus. But his whistle-blowing was shut down by a court order issued at Jaresko’s insistence. John Helmer, a longtime foreign correspondent in Russia, disclosed the outlines of this dispute in an article examining Jaresko’s history as a recipient of U.S. AID’s largesse and how it enabled her to become an investment banker via WNISEF, Horizon Capital and Emerging Europe Growth Fund.
  • Helmer wrote: “Exactly what happened when Jaresko left the State Department to go into her government-paid business in Ukraine has been spelled out by her ex-husband in papers filed in the Chancery Court of Delaware in 2012 and 2013. … “Without Figlus and without the US Government, Jaresko would not have had an investment business in Ukraine. The money to finance the business, and their partnership stakes, turns out to have been loaned to Figlus and Jaresko from Washington.” According to Helmer’s article, Figlus had reviewed company records in 2011 and concluded that some loans were “improper,” but he lacked the money to investigate so he turned to Mark Rachkevych, a reporter for the Kyiv Post, and gave him information to investigate the propriety of the loans. “When Jaresko realized the beans were spilling, she sent Figlus a reminder that he had signed a non-disclosure agreement” and secured a temporary injunction in Delaware on behalf of Horizon Capital and EEGF to prevent Figlus from further revealing company secrets, Helmer wrote.
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  • Jaresco, who served in the U.S. Embassy in Kiev after the collapse of the Soviet Union, has said that Western NIS Enterprise Fund was “funded by the U.S. government to invest in small and medium-sized businesses in Ukraine and Moldova – in essence, to ‘kick-start’ the private equity industry in the region.” While the ultimate success of that U.S.-funded endeavor may still be unknown, it is clear that the U.S. AID money did “kick-start” Jaresco’s career in equity investments and put her on the path that has now taken her to the job of Ukraine’s new finance minister. Ukrainian President Petro Poroshenko cited her experience in these investment fields to explain his unusual decision to bring in an American to run Ukraine’s finances and grant her citizenship.
  • The substantial U.S. government sum invested in Jaresco’s WNISEF-based equity fund also sheds new light on how it was possible for Assistant Secretary of State for European Affairs Victoria Nuland to tally up U.S. spending on Ukraine since it became independent in 1991 and reach the astounding figure of “more than $5 billion,” which she announced to a meeting of U.S.-Ukrainian business leaders last December as she was pushing for “regime change” in Kiev. The figure was so high that it surprised some of Nuland’s State Department colleagues. Several months later – after a U.S.-backed coup had overthrown Yanukovych and pitched Ukraine into a nasty civil war – Under Secretary of State for Public Affairs Richard Stengel cited the $5 billion figure as “ludicrous” Russian disinformation after hearing the number on Russia’s RT network.
  • Stengel, a former Time magazine editor, didn’t seem to know that the figure had come from a fellow senior State Department official. Nuland’s “more than $5 billion” figure did seem high, even if one counted the many millions of dollars spent over the past couple of decades by U.S. AID (which puts its contributions to Ukraine at $1.8 billion) and the U.S.-funded National Endowment for Democracy, which has financed hundreds of projects for supporting Ukrainian political activists, media operatives and non-governmental organizations. But if one looks at the $150 million largesse bestowed on Natalie Jaresco, you can begin to understand the old adage that a hundred million dollars here and a hundred million dollars there soon adds up to real money.
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    The Ukraine coup government just keeps getting more and more absurdly corrupt. 
Paul Merrell

IMF's Lagarde guilty of 'negligence' but avoids sentence over 2008 payout - France 24 - 0 views

  • A French court on Monday convicted International Monetary Fund chief Christine Lagarde of "negligence" for her role in a controversial €400 million payout to a French tycoon in 2008 while she was finance minister. The Court of Justice did not hand down a sentence, a decision welcomed by her lawyer, Patrick Maisonneuve, as a "partial" victory. “We wanted a complete acquittal, instead we got a partial one,” said Maisonneuve. “The court has decided to not to penalise her – in fact, the court even decided this should not go on Madame Lagarde’s criminal record.” Lagarde, 60, was accused of approving a controversial €400 million ($425 million) payout to businessman Bernard Tapie in an out-of-court settlement when she was finance minister under former president Nicolas Sarkozy.
  • An arbitration panel ordered the payout to Tapie in connection with his sale of sportswear company Adidas. The panel upheld Tapie's claim that the Crédit Lyonnais bank had defrauded him by intentionally undervaluing Adidas at the time of the sale and that the state – as the bank's principal shareholder – should compensate him. It was Lagarde who, in her role as French finance minister, ordered the case to be heard by an arbitration panel instead of proceeding through the regular courts. Critics say that Lagarde ensured Tapie received preferential treatment by referring the matter to arbitration as a quid pro quo for his financial support for Sarkozy during his 2007 presidential bid. They also argue that the state should not have paid compensation to a convicted criminal who was bankrupt at the time and would not have been able to pursue the case in court. Tapie spent six months in prison in 1997 for match-fixing during his time as president of popular French football club, Olympique Marseille.
  • Tapie was placed under formal investigation for committing fraud in late June of 2013. He was ordered to pay back the money starting in December of last year. The "Tapie affair" has entangled several other high-profile figures, including Sarkozy’s ex-chief of staff Claude Guéant and Stéphane Richard, Lagarde’s former chief of staff at the finance ministry and now chief executive of Orange. Lagarde was appointed managing director of the IMF in July 2011. Lagarde served as French finance minister from June 2007 and also served as minister of foreign trade for two years. Before entering politics she worked as an anti-trust and labour lawyer, and was a partner with the international law firm of Baker & McKenzie.
Paul Merrell

European Banks vs. Greek Labour   :  Information Clearing House - ICH - 0 views

  • PERIES: So, Michael, these international banks represented by the finance ministers now in Brussels, when they were in crisis and we the public treasury bailed them out, they had no problem with that. Why are they now refusing to assist Greece at a time of need when in fact some politicians and even the troika is being more receptive to what Greece is saying? HUDSON: Because what's at issue really is a class war. It's not so much Germany versus Greece, as the papers say. It's really the war of the banks against labor. And it's a continuation of Thatcherism and neoliberalism. The problem isn't simply that the troika wants Greece to balance the budget; it wanted Greece to balance the budget by lowering wages and by imposing austerity on the labor force. But instead, the terms in which Varoufakis has suggested balancing the budget are to impose austerity on the financial class, on the tycoons, on the tax dodgers. And he said, okay, instead of lowering pensions to the workers, instead of shrinking the domestic market, instead of pursuing a self-defeating austerity, we're going to raise two and a half billion from the powerful Greek tycoons. We're going to collect the back taxes that they have. We're going to crack down on illegal smuggling of oil and the other networks and on the real estate owners that have been avoiding taxes, because the Greek upper classes have become notorious for tax dodging.
  • Well, this has infuriated the banks, because it turns out the finance ministers of Europe are not all in favor of balancing the budget if it has to be balanced by taxing the rich, because the banks know that whatever taxes the rich are able to avoid ends up being paid to the banks. So now the gloves are off and the class war is sort of back. Originally, Varoufakis thought he was negotiating with the troika, that is, with the IMF, the European Central Bank, and the Euro Council. But instead they said, no, no, you're negotiating with the finance ministers. And the finance ministers in Europe are very much like Tim Geithner in the United States. They're lobbyists for the big banks. And the finance minister said, how can we screw up this and make sure that we treat Greece as an object lesson, pretty much like America treated Cuba in 1960?
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    Just as you've given up on society, life throws you some comedy. 
Paul Merrell

Ukraine Finance Minister's American 'Values' | Consortiumnews - 0 views

  • Ukraine’s new Finance Minister Natalie Jaresko, who has become the face of reform for the U.S.-backed regime in Kiev and will be a key figure handling billions of dollars in Western financial aid, was at the center of insider deals and other questionable activities when she ran a $150 million U.S.-taxpayer-financed investment fund.Prior to taking Ukrainian citizenship and becoming Finance Minister last December, Jaresko was a former U.S. diplomat who served as chief executive officer of the Western NIS Enterprise Fund (WNISEF), which was created by Congress in the 1990s and overseen by the U.S. Agency for International Development (U.S. AID) to help jumpstart an investment economy in Ukraine.
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    A very large whiff that Ms. Jaresko should be doing time in federal prison for insider trading and fraud upon the federal government.
Gary Edwards

Ukraine's Oligarchs Turn on Each Other | Consortiumnews - 0 views

  • n the never-never land of how the mainstream U.S. press covers the Ukraine crisis, the appointment last year of thuggish oligarch Igor Kolomoisky to govern one of the country’s eastern provinces was pitched as a democratic “reform” because he was supposedly too rich to bribe, without noting that his wealth had come from plundering the country’s economy.In other words, the new U.S.-backed “democratic” regime, after overthrowing democratically elected President Viktor Yanukovych because he was “corrupt,” was rewarding one of Ukraine’s top thieves by letting him lord over his own province, Dnipropetrovsk Oblast, with the help of his personal army.
  • Last year, Kolomoisky’s brutal militias, which include neo-Nazi brigades, were praised for their fierce fighting against ethnic Russians from the east who were resisting the removal of their president. But now Kolomoisky, whose financial empire is crumbling as Ukraine’s economy founders, has turned his hired guns against the Ukrainian government led by another oligarch, President Petro Poroshenko.Last Thursday night, Kolomoisky and his armed men went to Kiev after the government tried to wrest control of the state-owned energy company UkrTransNafta from one of his associates. Kolomoisky and his men raided the company offices to seize and apparently destroy records. As he left the building, he cursed out journalists who had arrived to ask what was going on. He ranted about “Russian saboteurs.”It was a revealing display of how the corrupt Ukrainian political-economic system works and the nature of the “reformers” whom the U.S. State Department has pushed into positions of power. According to BusinessInsider, the Kiev government tried to smooth Kolomoisky’s ruffled feathers by announcing “that the new company chairman [at UkrTransNafta] would not be carrying out any investigations of its finances.”
  • Yet, it remained unclear whether Kolomoisky would be satisfied with what amounts to an offer to let any past thievery go unpunished. But if this promised amnesty wasn’t enough, Kolomoisky appeared ready to use his private army to discourage any accountability.On Monday, Valentyn Nalyvaychenko, chief of the State Security Service, accused Dnipropetrovsk officials of financing armed gangs and threatening investigators, Bloomberg News reported, while noting that Ukraine has sunk to 142nd place out of 175 countries in Transparency International’s Corruptions Perception Index, the worst in Europe.The see-no-evil approach to how the current Ukrainian authorities do business relates as well to Ukraine’s new Finance Minister Natalie Jaresko, who appears to have enriched herself at the expense of a $150 million U.S.-taxpayer-financed investment fund for Ukraine.
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  • Jaresko, a former U.S. diplomat who received overnight Ukrainian citizenship in December to become Finance Minister, had been in charge of the Western NIS Enterprise Fund (WNISEF), which became the center of insider-dealing and conflicts of interest, although the U.S. Agency for International Development showed little desire to examine the ethical problems – even after Jaresko’s ex-husband tried to blow the whistle. [See Consortiumnews.com’s “Ukraine Finance Minister’s American ‘Values.’”]Passing Out the BillionsJaresko will be in charge of dispensing the $17.5 billion that the International Monetary Fund is allocating to Ukraine, along with billions of dollars more expected from U.S. and European governments.
  • Regarding Kolomoisky’s claim about “Russian saboteurs,” the government said that was not the case, explaining that the clash resulted from the parliament’s vote last week to reduce Kolomoisky’s authority to run the company from his position as a minority owner. As part of the shakeup, Kolomoisky’s protégé Oleksandr Lazorko was fired as chairman, but he refused to leave and barricaded himself in his office, setting the stage for Kolomoisky’s arrival with armed men.On Tuesday, the New York Times reported on the dispute but also flashed back to its earlier propagandistic praise of the 52-year-old oligarch, recalling that “Mr. Kolomoisky was one of several oligarchs, considered too rich to bribe, who were appointed to leadership positions in a bid to stabilize Ukraine.”Kolomoisky also is believed to have purchased influence inside the U.S. government through his behind-the-scenes manipulation of Ukraine’s largest private gas firm, Burisma Holdings. Last year, the shadowy Cyprus-based company appointed Vice President Joe Biden’s son, Hunter Biden, to its board of directors. Burisma also lined up well-connected lobbyists, some with ties to Secretary of State John Kerry, including Kerry’s former Senate chief of staff David Leiter, according to lobbying disclosures.
  • As Time magazine reported, “Leiter’s involvement in the firm rounds out a power-packed team of politically-connected Americans that also includes a second new board member, Devon Archer, a Democratic bundler and former adviser to John Kerry’s 2004 presidential campaign. Both Archer and Hunter Biden have worked as business partners with Kerry’s son-in-law, Christopher Heinz, the founding partner of Rosemont Capital, a private-equity company.”According to investigative journalism in Ukraine, the ownership of Burisma has been traced to Privat Bank, which is controlled by Kolomoisky.So, it appears that Ukraine’s oligarchs who continue to wield enormous power inside the corrupt country are now circling each other over what’s left of the economic spoils and positioning themselves for a share of the international bailouts to come.
  • As for “democratic reform,” only in the upside-down world of the State Department’s Orwellian “information war” against Russia over Ukraine would imposing a corrupt and brutal oligarch like Kolomoisky as the unelected governor of a defenseless population be considered a positive.(Early Wednesday morning, President Poroshenko dismissed Kolomoisky from his post as Dnipropetrovsk regional governor.)
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    Another of the greatest U.S. exports: corruption.
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    Corporate oligarchs leading private but well armed armies in raids against the Ukrainian government holdings - controlled by other corporate oligarchs? This article dives into the mess that the USA and European NATO allies have stirred in the Ukraine, and through this lens we get to see what the world will look like when corporate oligarchs and their Bankster masters rule the world. The article is revealing, but it fails to connect the corporatist to the Banks that are sending in billions of dollars. The connection instead is made to the democratic governments intent on pushing the world into world war 3. Nor is there much mention of the oil and natural gas pipeline and supply geographics that dominate battlefields from the Ukraine, to Syria, Iraq and Lybia. The New World Order needs a third World War if it's to truly overturn the fragile post World War II economic order loosely based on free market capitalism, individual liberty and democratic governance. The end of national sovereignty, religious and cultural identities has one more hurdle. And there is no doubt in my mind that the elites are ready to jump that hurdle. World War III has spread from the middle east to middle Europe. Best we all hold on. .................. "Exclusive: Ukraine's post-coup regime is facing what looks like a falling-out among thieves as oligarch-warlord Igor Kolomoisky, who was given his own province to rule, brought his armed men to Kiev to fight for control of the state-owned energy company, further complicating the State Department's propaganda efforts, reports Robert Parry. In the never-never land of how the mainstream U.S. press covers the Ukraine crisis, the appointment last year of thuggish oligarch Igor Kolomoisky to govern one of the country's eastern provinces was pitched as a democratic "reform" because he was supposedly too rich to bribe, without noting that his wealth had come from plundering the country's economy. In other words, the new U.S.-b
Paul Merrell

Growing boycott will "hit each of us in the pocket" warns Israel finance minister | The... - 0 views

  • Israeli finance minister Yair Lapid has become the latest senior official to warn about the serious impact of growing boycott, divestment and sanctions (BDS) campaigns targeting Israel. “The world seems to be losing patience with us,” Lapid told the Hebrew edition of Ynet on 10 January.
  • Lapid, leader of the Yesh Atid faction, is the senior coalition partner of Israeli Prime Minister Benjamin Netanyahu.
  • Lapid added: “We have formulated complete scenarios as to what will happen if the boycott continues and exports are hurt. In all scenarios, things do not look good. The status quo will hit each of us in the pocket, will hurt every Israeli. We are export-oriented, and this [export trade] depends on our global standing.” Lapid was particularly concerned about further announcements by Israel of new tenders for houses in illegal Jewish-only colonies in the occupied West Bank. Lapid’s frank comments come just days after Dutch pensions giant PGGM took the unprecedented decision to divest from all Israeli banks because of their role in the colonization program.
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  • Lapid, an alleged “centrist” who has habitually made anti-Arab comments, joins other senior politicians who have warned about the looming threat of boycott. Recently, the chair of the governing coalition’s Habayit Hayehudi party said that boycott was the “greatest threat” Israel faced. Justice minister and war crimes suspect Tzipi Livni also warned that “The boycott is moving and advancing uniformly and exponentially … Those who don’t want to see it, will end up feeling it.”
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    This is the largest part of the real back story on John Kerry's feverish effort to negotiate a two-state solution to the Israel-Palestine apartheid problem. The Palestinian Boycott, Divestment, and Sanctions ("BDS") movement against Israel is growing rapidly, nearly doubling the rate of growth of the former BDS movement that successfully ended apartheid government of South Africa.   Israel has become a pariah state diplomatically because of its war crimes against Palestinians and because of BDS, is increasingly becoming a pariah state economically. At the same time, Israel has illegally colonized Palestine to the extent that a 2-state solution is all but impossible, meaning that the most likely outcome is that Israel will cease being the "Jewish State" and be forced to grant equality to Palestinians as well in a new secular government. The situation became all the more dire for Israel as the "Jewish State" when the U.N. General Assembly granted Palestine observer state status, opening the way for Palestine to, e.g., pursue criminal prosecution of Israeli leaders for war crimes before the International Criminal Court.  That has dramatically increased the Palestinian Authority's leverage in negotiations. Kerry is on a rescue mission to see if he can coerce the Palestinian Authority to cede sufficient land and powers to Israel to make a 2-state solution credible. Kerry's leverage is that the U.S. has been underwriting the Palestinian Authority's expenses and can threaten to withdraw the financial support.  All of which brings it down to the question of Palestinian Authority leadership corruption. If the PA stands tall and refuses to accept Kerry's ridiculous demands, there will almost certainly be no 2-state solution, ever, because Israel continues to colonize Palestine and has locked up most of Palestine's water resources. Further colonization means still less water for an "independent" Palestine state. The Palestine Authority, on the other hand, suffered f
Paul Merrell

Netanyahu scandals reflect corruption at the heart of Israeli society - Mondoweiss - 0 views

  •       Israeli prime minister Benjamin Netanyahu is in danger of being brought down, possibly soon, over what initially appears to be little more than an imprudent taste for Cuban cigars and pink champagne. In truth, however, the allegations ensnaring Netanyahu reveal far more than his personal flaws or an infatuation with the high life. They shine a rare light on the corrupt nexus between Israel’s business, political and media worlds, compounded by the perverse influence of overseas Jewish money. Of the two police investigations Netanyahu faces (there are more in the wings), the one known as Case 1000, concerning gifts from businessmen worth hundreds of thousands of dollars, is most likely to lead to his downfall. But it is the second investigation, Case 2000, and the still-murky relationship between the two cases, that more fully exposes the rot at the heart of Israel’s political system. This latter case hinges on a tape recording in which Netanyahu plots with an Israeli newspaper tycoon to rig media coverage in his favor. Leads from both cases suggest that Netanyahu may have been further meddling, together with his billionaire friends, in the shadowy world of international espionage.
  • Netanyahu’s appetite for a free lunch has been common knowledge in Israel since his first term as prime minister in the late 1990s. Then, he was twice investigated for fraud, though controversially charges were not brought in either case. Police discovered along the way that he and his wife, Sara, had horded many of the gifts he received during state visits. More than 100 were never recovered. The clarifications that were issued more than 15 years ago, as a result of those investigations, make it hard for Netanyahu to claim now that he did not understand the rules. According to justice ministry advice in 2001, government and state officials cannot keep gifts worth more than $100 without risking violating Israeli law. The gifts Netanyahu received from one of the Israeli businessmen involved in Case 1000, Hollywood film producer Arnon Milchan, amounted to as much as $180,000. Netanyahu has argued that these presents, ranging from cigars to jewelry, were expressions of a close friendship rather than bribes to him in his capacity as prime minister. The problem, however, is that Netanyahu appears to have reciprocated by using his position as head of the Israeli government to lobby John Kerry, the then U.S. secretary of state, to gain Milchan a 10-year U.S. residency visa. He may have done more.
  • Also being investigated are his family’s ties to a friend of Milchan’s, Australian billionaire James Packer, who made his fortune in the media and gambling industries. Packer has similarly lavished gifts on the Netanyahu family, especially Yair, Netanyahu’s eldest son. At the same time, Packer, now a neighbor of the Netanyahus in the coastal town of Caesarea, has been seeking permanent residency and the enormous benefits that would accrue with tax status in Israel. As a non-Jew, Packer should have no hope of being awarded residency. There are suspicions that Netanyahu may have been trying to pull strings on the Australian’s behalf. Many of these gifts were apparently not given freely. The Netanyahus asked for them. Indicating that Netanyahu knew there might be legal concerns, he used code words – “leaves” for cigars and “pinks” for champagne – to disguise his orders to Milchan. Police are reported to be confident, after questioning Netanyahu three times, that they have enough evidence to indict him. If they do, Netanyahu will be under heavy pressure to resign.
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  • From Hollywood to Mossad Cases 1000 and 2000 share at least one figure in common. Milchan gave Netanyahu extravagant gifts over many years, but he is also reported to have acted as go-between, bringing arch-enemies Netanyahu and Mozes together. Milchan has his own financial stake in the media, in his case a holding in the Channel 10 TV station. In addition, Milchan introduced Netanyahu to sympathetic businessmen, including his friend Packer, to discuss taking the ailing Yedioth media group off Mozes’ hands. Only last October he arranged for media mogul Rupert Murdoch’s son, Lachlan, to fly to Israel for one night for a secret meeting with Netanyahu. Milchan is undoubtedly at the centre of the shadowy world of power and finance that corrupts public life in Israel. Not only is Milchan a highly influential Hollywood figure, having produced more than 100 films, but he has admitted that he is a former Mossad agent. He used his Hollywood connections to help make arms deals and secure parts for Israel’s nuclear weapons program. One can only wonder whether Milchan was not effectively set up in his Hollywood career as a cover for his Mossad activities. But Milchan, it seems, is still wielding influence in Israel’s twilight world of security.
  • Yossi Cohen was appointed head of the Mossad a year ago, after a government vetting committee accepted that he had no personal ties to Netanyahu. But Cohen forgot to mention that he is extremely close to Netanyahu’s high-flying friends – connections that are now under investigation. Milchan set up a global security firm in 2008 called Blue Sky International, stuffed with Israeli security veterans. Packer soon became a partner. They developed close ties to Cohen, first while he was a senior official at the Mossad and later when he headed Israel’s national security council. Before Cohen was appointed head of Mossad in December 2015, the pair had hoped to recruit him to their cyber-security operations. Cohen received several gifts from Packer, in violation of Israeli government rules, including a stay at one of his luxury hotels. A source speaking to Haaretz said Blue Sky had “more than [a] direct line” to Netanyahu. They “would pull him out from anywhere, at any time, on any occasion.” According to Haaretz’s military analyst, Amir Oren, the new disclosures raise serious questions about whether Milchan and Packer twisted Netanyahu’s arm to parachute Cohen into the post over the favored candidate. In return, Packer may have been hoping that Cohen would authorise exceptional Israeli residency for him, classifying him as a security asset.
  • eyond this, one one can only speculate about how Cohen’s indebtedness to Milchan, Packer and Netanyahu might have influenced his decisions as head of the Mossad. It was only a few years ago that the former Mossad chief, Meir Dagan, was reported to have wrestled furiously with Netanyahu to stop him launching a military strike on Iran. Prosecution drags feet It is unclear for the time being whether the revelations are drawing to a close or will lead deeper into Israel’s twin netherworlds of financial corruption and security. But what has emerged so far should be enough to finish off Netanyahu as prime minister. Whether it does so may depend on the extent of Israel’s compromised legal system. Attorney general Avichai Mendelblit was appointed by Netanyahu and is a political ally. He appears to have been dragging his feet as much as possible to slow down the police investigation, if not sabotage it. But the weight of evidence is looking like it may prove too overwhelming. As political analyst Yossi Verter observed: “There’s no way that a police commissioner … appointed [by Netanyahu] and a cautious attorney general, who in the past was part of his close circle and one of his loyalists, would be putting him through the seven circles of hell if they weren’t convinced that there’s a solid basis for indictment and conviction.” The next question for Netanyahu is whether he will step down if indicted. He should, if Olmert’s example is followed. But his officials are citing a 1993 high court ruling that allows a cabinet minister under indictment to remain in office. Certainly if Netanyahu chooses to stay on, his decision would be appealed to the court again. However, the judges may be reluctant to oust a sitting prime minister. The court of public opinion is likely to be decisive in that regard. A recent poll shows few Israelis believe Netanyahu is innocent of the allegations. Some 54 per cent think he broke the law, while only 28 believe him. Opinion, however, is split evenly on whether he should resign.
  • If past experience is any measure, Netanyahu will try to turn public opinion his way by increasing friction with the Palestinians and exploiting the international arena, especially his relations with the Trump administration. He may be expected to encourage Trump at the very least to posture more stridently against Iran. Nonetheless, most observers assume Netanyahu is doomed – it is simply a matter of when. The odds are on an indictment in late spring, followed by elections in the fall, say Israeli analysts. At this stage, none of his political rivals wants to be seen stabbing Netanyahu in the back. Most are keeping quiet. But behind the scenes, political leaders are hurrying to forge new alliances and extract political concessions while Netanyahu is wounded.
  • Who might succeed Netanyahu? Yair Lapid, of the centre-right Yesh Atid, is heading the polls, but that may in part reflect the disarray in Netanyahu’s Likud party. In a sign of where the deeper currents in Israeli society are leading, a Maariv poll last week showed that settler leader Naftali Bennett would win an election if he were to head the Likud. Netanyahu now needs the help of all the powerful friends he can muster. His biggest ally, U.S. casino magnate Sheldon Adelson, may not be among them. After the revelations that Netanyahu was conspiring against him with Mozes, Adelson has cut back on Israel Hayom’s circulation and is reported to be offering less favorable coverage of the Netanyahus. That could prove the final straw, sealing Netanyahu’s fate.
Paul Merrell

'Foreigners' land top minister posts in Ukraine - fastFT: Market-moving news and views,... - 0 views

  • Two foreign-born investment fund managers and a reform-minded former official from the Caucasus republic of Georgia have been given top ministerial posts in Ukraine's newly-formed, pro-EU integration coalition government. The unorthodox appointment of the three "foreigners" swiftly granted Ukrainian citizenship on Tuesday is seen as a desperate attempt by the war-torn and recession-battered country to jump-start reforms, crack corruption and unlock billions of dollars in bailout funds from the International Monetary Fund, reports Roman Olearchyk. US-born Natalie Jaresko, a former US State Department official and investment fund manager with Ukrainian roots who has resided in Kiev for some 20 years, will join the government of prime minister Arseniy Yatseniuk as finance minister. In this role, the former head of Horizon Capital and economic section chief at the US Embassy will lead bailout and reform talks with the IMF and other creditors.
  • Working closely with her as economy minister will be Lithuanian Aivaras Abromavicius. Formerly a top executive at East Capital, a Swedish asset manager, he has in recent years been based in Ukraine. His wife is Ukrainian. Pledging to adopt anti-corruption and pro-business reforms, Mr Abromavicius addressed Ukrainian lawmakers on Tuesday saying: "I'm from Europe. We will work together European style." US-educated Alexander Kvitashvili, who reformed Georgia's healthcare system, will now be health minister in Ukraine and be tasked with the grim job of overhauling the country's dysfunctional healthcare system.
  • Explaining the need for foreigners to enter the government, Ukraine's president Petro Poroshenko speaking before lawmakers approved the new cabinet said: Ukraine faces outstanding challenges – an incredibly difficult economic situation, aggression from the side of Russia, the need for radical reforms and tackling of corruption. This all requires non-standard decisions …. These decisions require a search for candidates for the new government not only from within in Ukraine, but also from across its borders, specifically from the countries which have experience in coming out of systemic crisis of foreign and domestic nature.
Paul Merrell

Merkel doesn't oppose Greece leaving Eurozone: Syriza surges to 30.4 % in Poll for Janu... - 0 views

  • German Chancellor Angela Merkel doesn’t oppose Greece leaving the eurozone. Talks about the possibility of Greece leaving the eurozone have gained renewed urgency after 30.4 % of polled Greeks said they would vote for Syriza, suggesting a chance that the left-wing party that runs on a platform of renegotiating bailout terms and national sovereignty as well as social justice could win the Greek snap parliamentary elections on January 25.
  • German Chancellor Angela Merkel said, according to the German magazine Der Spiegel, that Germany wouldn’t oppose a Greek exit from the eurozone if the people of Greece voted a party to power that opposes the current austerity measures in the country which came as conditionalities along with a EU and IMF bailout. Both Chancellor Merkel as well as German Finance Minister Wolfgang Schäuble reportedly believe that such a decision and development would be bearable for Germany as well as for the other eurozone member States. The Chancellor and the Finance Minister were cited as referring to progress made in the eurozone since 2012.
  • EUropean shares and bonds dropped last week after the Greek parliament rejected the current Prime Minister Antonius Samaras’ presidential candidate and set the country on a course towards snap parliamentary elections on January 25. A recent poll showed that the governing PASOK and New Democracy coalition had suffered substantial losses in popular support after they agreed to the EU/IMF bailout and associated conditions that have driven a large percentage of the middle class into abject poverty. Another issue that is hotly debated among Greeks is the loss of sovereignty over the county’s economic and fiscal policy, and domestic affairs, including social policies.
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  • The support for Syriza is by many analysts seen as a clear popular mandate for Syriza and against the austerity measures which have driven impoverished previous members of the middle class to illegally cut down trees for firewood to survive the winter. Many analysts also interpret the results of the recent polls as a clear message to Prime Minister George Papandreou who ruled the country since 2009 and to and PASOK as well as to New Democracy, that “enough is enough”. When UK Prime Minister David Cameron, in 2014, signaled that the UK could leave the EU all together, the majority of polled French said “let them go”. As for Germany and France, a slimmer, more streamlined EU could indeed strengthen a growing continental European consensus against a UK/US economic, political and military hegemony which the Atlantic Axis tries to enforce in Europe. Some analysts say that a Greek departure from the eurozone could be positive for both the EU and for Greece, while a British departure from the EU could put Europe on less hostile course towards Russia and a consolidation of ties between the EU and Russia.
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    Be sure to take your pitchfork along if you're traveling to Greece in the near future. Barbecued bankster is on the menu. Don't forget that Russia is waiting in the wings, with Turkey agreed to supply the Turkey-Greece natural gas pripeline with Russian natural gas. So the E.U. can pay Greece and Turkey pass-through revenues if the EU wants any of that gas. 
Paul Merrell

Yair Lapid - Wikipedia - 0 views

  • Yair Lapid (Hebrew: יאיר לפיד‎‎, born 5 November 1963) is an Israeli politician, former Finance Minister and former journalist who is the Chairman of the Yesh Atid Party. He served as the Israeli Minister of Finance between 2013 and 2014. Prior to his entry into politics in 2012, he was a journalist, author, TV presenter and news anchor. The centrist Yesh Atid Party, which he founded, became the second largest party in the Knesset by winning 19 seats in its first election in 2013. The greater than anticipated results contributed to Lapid's reputation as a leading moderate. In March 2013, following his coalition agreement with Likud, Lapid was appointed as the Israeli Minister of Finance. In May 2013, Lapid ranked first on the list of the "Most Influential Jews in the World" by The Jerusalem Post
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    Mentioned as possible successor to Netanyahu if the latter is removed from office because of corruption charges.
Paul Merrell

Russia Finance Minister: We May Abandon Dollar In Oil Trade As It Is Becoming "Too Risk... - 1 views

  • One month ago, the bond market and political pundits did a double take when according to the latest Treasury International Capital report, Russia had liquidated virtually all of its US Treasury holdings, selling off the bulk of its US government bonds in just two months, March and April.
  • And with the US threatening to impose a new set of "crushing" sanctions on Russia, including in retaliation for the alleged Novichok nerve gas attack in the UK, Russia not only intends to continue liquidating its US holdings, but to significantly reduce its reliance on the US Dollar. Speaking in an interview for the Rossiya 1 TV channel, Finance Minister Anton Siluanov said that Russia "aims to keep reducing its investments in American securities" following new U.S. sanctions and said that the "US dollar is becoming an unreliable tool for payments in international trade." The minister also hinted at the possibility of using national currencies instead of the dollar in oil trade. "I do not rule it out. We have significantly reduced our investment in US assets. In fact, the dollar, which is considered to be the international currency, becomes a risky tool for payments," Siluanov noted.
Paul Merrell

The Perfect Storm In Turkey - Corruption Conflict Conspiracy | Scoop News - 0 views

  • The Republic of Turkey is consumed by intense conflict, conspiracy charges, and underlying financial problems that simply won't go away. A perfect storm is brewing in Turkey.
  • Prime Minister Recep Tayyip Erdogan's government and supporters are charged with a secret gold-for-oil deal with Iran. The deal, in violation of trade sanctions against Iran, enriched the PM's ministers and other key supporters involved (including the PM's son), according to prosecutors. The deal also involved misreporting billions of dollars in trade, which, in turn, resulted in Turkey overstating national income and understating its current account deficit. A more ominous charge focuses on Erdogan's open support of a wealthy Saudi known for funding al Qaeda and the PM's alleged support of Al Qaeda fighters engaged against the Syrian government. Just today, we say this headline: Turkish governor blocks police search on Syria-bound truck reportedly carrying weapons . Erdogan is a strong supporter of the Syrian rebels, assumed recipients of the weapons.The crisis started on December 17, 2013 when dozens of Erdogan's close associates were arrested for corruption. The arrests included the CEO of Turkey's state bank caught with million in euros stuffed in shoeboxes. Charges and arrests continued. Prosecutors and police who handled the case were fired at the behest of the Prime Minister. The Turkish supreme court ruled that the government couldn't interfere with police investigations through firings and intimidation. Undeterred, Erdogan fired more prosecutors claiming the charges were an attack on the Turkish state. To top it all off, authorities banned reporters from police stations and pressured the media to stop focusing on the scandals.
  • The risks to Erdogan are substantial and can impact the entire nation.The two biggest concerns are Erdogan's ongoing support for Syrian rebels, particularly the Islamist jihadists sponsored by Saudi Arabia, the Islamic Front. Critics of the PM are raising his open association with Yasin al-Qadi, an alleged funding source for Al Qaeda and a designated international terrorist by the U.S. government. Erdogan was dismissive of any problems when confronted on the association saying that al-Qadi was "a charitable person who loves Turkey." He may have more explaining to do if investigations continue.Reporting on evidence from prosecutors and first hand witnesses, Michael Rubin found:"According to Turkish interlocutors, there are consistent irregularities in 28 government tenders totaling in the tens of billions of dollars, in which kickbacks and other payments were made, a portion of which Turkish investigators believe ended up with al-Qadi’s funds and charities. These funds and charities were then used to support al-Qaeda affiliates and other radical Islamist groups operating in Syria like the Nusra Front." Dec. 27
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  • "Irregularities" in government tenders is part of a much larger financial crisis brought on by Erdogan's policies. As noted in a an article earlier this week:"While the focus to date has been on charges of personal enrichment by Erdogan’s ministers and associates, the real problem for the current government is financial fraud in reporting its current account deficit and national income. These figures are the basis for access to international financing. Intentional, inaccurate reporting constitutes fraud that understates the risk to lenders and provides a more favorable interest rate for the borrower than is warranted." Michael Collins, Dec 29Mustafa Sonmez detailed the problems in Hurriyet Daily News, an important analysis overshadowed by the more spectacular charges of late. Turkey's secret gold-for-oil deal with Iran distorted financial reporting figure. Debt was understated and income overstated as a result. Turkey's economic success is based on foreign investments. When foreign investors look at the political instability combined with the financial reporting problems, they will vote with their feed. A survey of Middle East fund managers found that none planned to raise investments in Turkey in 2014 and 13% planned to reduce their investments.
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    Finally, an article that does a fairly good job of summarizing the situation in Turkey. In a single word, it's a mess. 
Gary Edwards

Is This the End of Capitalism? Hardly, but it's a great excuse for the antiglobalizatio... - 0 views

  •  
    Daniel Henninger Says Blaming Capitalism for the Crisis Overlooks the Housing Bubble - WSJ.com: "Heads of state, perplexed finance ministers, inflated retinues and journalists from 20 nations arrived in London yesterday to address "the greatest financial crisis since the Depression." By 4 p.m. London time today they will hold a press conference and go home." "Beware of real-estate salesmen. The housing bubble that floated into view in 2007 is turning into the blob that ate the world. Real-estate mortgages and their derivative securities are a significant problem. That discrete problem, however, has been pumped up to an historic "crisis of capitalism." Capitalism didn't tank the U.S. economy. Overbuilt housing did. Overbuilt housing tanked the economies of the U.K. and Ireland and Spain. If little else, we've learned that artificially cheap housing sets loose limitless moral hazard." "In a normal environment, the problems revealed by the crisis in mortgage finance would produce fixes relevant to the problem, such as resetting the ratios of assets to capital for banks and hedge funds, or telling the gnomes of finance to rethink mark-to-market and the uptick rule. More energetic reformers might consider Gary Becker's suggestion that as financial institutions expand in size, their capital requirements tighten, so that compulsive eaters like Citigroup can fit inside their capital base." "Two signal events in history are shaping the politics of the current economic crisis: the Great Depression and the Reagan presidency (and in Europe, Thatcherism)." "The Depression put in motion an historic tension between public and private sectors over who sets a nation's course. After 50 years of public dominance, Reagan's presidency tipped the scales back toward private enterprise. The economic life of the ensuing 35 years became "the American model." Every waking hour of this economically liberal era, the losing side has wanted to tip the balance back toward public-sector
Paul Merrell

Fallout from Obama's Russia Strategy Is Spreading through Europe - Yahoo Finance - 0 views

  • The Obama administration’s sanctions against Russia, reluctantly supported by the Europeans, bite more deeply every day. But it is also clearer with each daily news report that Russians are not going to suffer alone.
  • The Obama administration’s sanctions against Russia, reluctantly supported by the Europeans, bite more deeply every day. But it is also clearer with each daily news report that Russians are not going to suffer alone.
  • Russia’s immediate neighbors and the Europeans will, too. And—not to be missed—so will the trans-Atlantic alliance that has served as the backbone of Western policy since the postwar order was established 70 years ago next spring.This president is intent on making history. But does he distinguish between good history and the other kind?
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  • It’ll be the other kind if the European Union swoons into another recession as a consequence of America’s geopolitical ambitions to Europe’s east. Emphatically it’ll be the other kind if Obama hastens a drift in Washington’s ties to the European capitals that have been faintly discernible, if papered over, for decades.     Let’s look at this from all angles.
  • On Friday the Polish zloty hit a 15-month low against the euro—straight-ahead fallout from Russia’s crisis. Among the CIS nations, Belarus just doubled interest rates, to 50 percent, and imposed a 30 percent tax on forex transactions.Kyrgyzstan is closing private currency exchanges, and Armenia is letting the dram, its currency, collapse—17 percent in the past month—in a policy it calls “hyper-devaluation.” Further afield, the Indian rupee, the South African rand, and the Turkish lira are among the emerging-market currencies taking hits from the ruble crisis.Flipping these eggs over, Switzerland just imposed negative interest rates to discourage a stampede of weak-currency holders from piling into the franc in search of a safe haven.
  • What happened as E.U. ministers and heads of state convened in Brussels last week can come as no surprise.On one hand, German Chancellor Angela Merkel and British Prime Minister David Cameron insisted that Europeans must “stay the course” on Russia. Just before the Brussels summit, the E.U. barred investments in Crimea—a gesture more than anything else, but one with clear intent. On the other hand, deep divisions are now on the surface. Italian Prime Minister Matteo Renzi declared “absolutely no” to more sanctions, and François Hollande seemed to say no to the sanctions already in place. Noting signs of progress on Ukraine, the French president said, “If gestures are sent by Russia, as we expect, there would be no reason to impose new sanctions, but on the contrary to look at how we could bring about a de-escalation from our side.”Danish Foreign Minister Martin Lidegaard asserted that the sanctions already in place may be hitting too hard. We want to modulate Russia’s behavior, he said in an especially astute distinction, not destroy Russia’s economy.
  • In short, two serious fissures are emerging as the hard line against Russia advances. One, the E.U. is plainly getting fractious. Reflecting the rainbow of political tendencies among their leaders, Europeans may have reached their limit in acquiescing in the Obama administration’s tough-and-getting-tougher policies. Note, in this context: Europe has nothing like the fiscal and monetary wherewithal it had six years ago to withstand another bout of financial and economic contagion. Two, Obama appears ever closer to overplaying America’s hand with the Europeans. Tensions between Washington and Europe have simmered just out of sight since the Cold War decades. There are significant signs now that Obama has let the Ukraine crisis worsen them to the point the tenor of trans-Atlantic ties is permanently modulated. If this goes any further it will be very big indeed. 
  • Question: Do President Obama’s big-think people at State and the Treasury know the magnitude of the game they’re playing? This is the issue the economic fallout of sanctions and the new shifts in Europe raise. Follow-on query, not pleasant to ask but it must be put: Does Obama have any big thinkers in either department? As the consequences of this administration’s Russia policy unfurl, they appear to travel on a wing and a prayer—“making it up as they go along,” as a friend and Foreign Service refugee said over lunch the other day.
Paul Merrell

Bail-In and the Financial Stability Board: The Global Bankers' Coup | nsnbc international - 0 views

  • Ellen H. Brown (WoD) : On December 11, 2014, the US House passed a bill repealing the Dodd-Frank requirement that risky derivatives be pushed into big-bank subsidiaries, leaving our deposits and pensions exposed to massive derivatives losses. The bill was vigorously challenged by Senator Elizabeth Warren; but the tide turned when Jamie Dimon, CEO of JPMorganChase, stepped into the ring. Perhaps what prompted his intervention was the unanticipated $40 drop in the price of oil. As financial blogger Michael Snyder points out, that drop could trigger a derivatives payout that could bankrupt the biggest banks. And if the G20’s new “bail-in” rules are formalized, depositors and pensioners could be on the hook. The new bail-in rules were discussed in my last last article entitled “New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND Pensioners.” They are edicts of the Financial Stability Board (FSB), an unelected body of central bankers and finance ministers headquartered in the Bank for International Settlements in Basel, Switzerland. Where did the FSB get these sweeping powers, and is its mandate legally enforceable?
  • Those questions were addressed in an article I wrote in June 2009, two months after the FSB was formed, titled “Big Brother in Basel: BIS Financial Stability Board Undermines National Sovereignty.” It linked the strange boot shape of the BIS to a line from Orwell’s 1984: “a boot stamping on a human face—forever.” The concerns raised there seem to be materializing, so I’m republishing the bulk of that article here. We need to be paying attention, lest the bail-in juggernaut steamroll over us unchallenged. The Shadowy Financial Stability Board Alarm bells went off in April 2009, when the Bank for International Settlements (BIS) was linked to the new Financial Stability Board (FSB) signed onto by the G20 leaders in London. The FSB was an expansion of the older Financial Stability Forum (FSF) set up in 1999 to serve in a merely advisory capacity by the G7 (a group of finance ministers formed from the seven major industrialized nations). The chair of the FSF was the General Manager of the BIS. The new FSB was expanded to include all G20 members (19 nations plus the EU).
  • Formally called the “Group of Twenty Finance Ministers and Central Bank Governors,” the G20 was, like the G7, originally set up as a forum merely for cooperation and consultation on matters pertaining to the international financial system. What set off alarms was that the new Financial Stability Board had real teeth, imposing “obligations” and “commitments” on its members; and this feat was pulled off without legislative formalities, skirting the usual exacting requirements for treaties. It was all done in hasty response to an “emergency.” Problem-reaction-solution was the slippery slope of coups. Buried on page 83 of an 89-page Report on Financial Regulatory Reform issued by the US Obama administration was a recommendation that the FSB strengthen and institutionalize its mandate to promote global financial stability. It sounded like a worthy goal, but there was a disturbing lack of detail. What was the FSB’s mandate, what were its expanded powers, and who was in charge? An article in The London Guardian addressed those issues in question and answer format:
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  • For three centuries, private international banking interests have brought governments in line by blocking them from issuing their own currencies and requiring them to borrow banker-issued “banknotes” instead. Political colonialism is now a thing of the past, but under the new FSB guidelines, nations could still be held in feudalistic subservience to foreign masters. Consider this scenario: the new FSB rules precipitate a massive global depression due to contraction of the money supply. XYZ country wakes up to the fact that all of this is unnecessary – that it could be creating its own money, freeing itself from the debt trap, rather than borrowing from bankers who create money on computer screens and charge interest for the privilege of borrowing it. But this realization comes too late: the boot descends and XYZ is crushed into line. National sovereignty has been abdicated to a private committee, with no say by the voters. Marilyn Barnewall, dubbed by Forbes Magazine the “dean of American private banking,” wrote in an April 2009 article titled “What Happened to American Sovereignty at G-20?”: It seems the world’s bankers have executed a bloodless coup and now represent all of the people in the world. . . . President Obama agreed at the G20 meeting in London to create an international board with authority to intervene in U.S. corporations by dictating executive compensation and approving or disapproving business management decisions.  Under the new Financial Stability Board, the United States has only one vote. In other words, the group will be largely controlled by European central bankers. My guess is, they will represent themselves, not you and not me and certainly not America.
  • Are these commitments legally binding? Adoption of the FSB was never voted on by the public, either individually or through their legislators. The G20 Summit has been called “a New Bretton Woods,” referring to agreements entered into in 1944 establishing new rules for international trade. But Bretton Woods was put in place by Congressional Executive Agreement, requiring a majority vote of the legislature; and it more properly should have been done by treaty, requiring a two-thirds vote of the Senate, since it was an international agreement binding on the nation. “Bail-in” is not the law yet, but the G20 governments will be called upon to adopt the FSB’s resolution measures when the proposal is finalized after taking comments in 2015. The authority of the G20 has been challenged, but mainly over whether important countries were left out of the mix. The omitted countries may prove to be the lucky ones, having avoided the FSB’s net.
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