Group items tagged

Russia is about to take another major step towards liberating the Ruble from the Dollar System. Its Finance Ministry just revealed it is considering issuing Russian state debt in Chinese Yuan. That would be an elegant way to decouple from the dependence and blackmail pressures from the US Treasury financial terrorism operations while at the same time strengthening the bonds between China and Russia–Washington’s worst geopolitical nightmare.

Russian Deputy Minister of Finance, Sergei Storchak, announced that his ministry is making a careful study of what would be required to issue Russian bonds denominated in Chinese Yuan. The latest news is part of a long-term strategy between Russia and China that goes at the heart of American hegemony—the role of the dollar as the leading world central bank reserve currency. The dollar is used in some 60% of central bank reserves today. The second largest is the Euro. Now clearly China is carefully moving, as the world’s largest trading nation, to create its Renminbi or Chinese Yuan as another major reserve currency. That has huge geopolitical implications. So long as the US dollar is leading reserve currency, the world must de facto buy US dollar Treasury bonds for its reserves. That has allowed Washington to have budget deficits since 1971 when the dollar left the gold exchange standard. In effect, China, Japan, Russia, Germany—all trade surplus countries, finance Washington’s deficits that allow her to make wars around the world. It is a paradox that Russia and China at least, are determined to end as soon as possible.

What all this indicates is that Russia and China are carefully planning a long-term strategy of getting out from dependence on the US currency, something that, as the US sanctions last year revealed, make both countries vulnerable to US currency wars of devastating impact. China has just been accepted “in principle” by the Group of 7 finance ministers to have its yuan included in the International Monetary Fund basket of currencies making up IMF Special Drawing Rights. Today only US dollar, Euro and Japanese Yen are included in the basket. Including the yuan would be a huge step towards making the yuan a recognized international reserve currency, and at the same time would weaken the dollar share. China’s foreign reserves consist overwhelmingly of US dollar claims, mainly US Treasury bonds, which is a strategic weakness, because in case of war these can be frozen, as Iran knows too well. It is imperative for China to increase the gold content of the reserves and to diversify the rest into other currencies. China has also agreed with Russia to unify the new Silk Road high-speed rail project with Russia and Russia’s Eurasian Economic Union. At the same time Beijing has announced it is creating a huge $16 billion fund to develop gold mines along the rail route linking Russia and China and Central Asia. That suggests plans to greatly build up gold as central bank reserve share. China’s central bank has greatly increased its gold holdings in recent years, though whether it is now greater than the alleged Federal Reserve gold holdings of 8000 tons is not yet public. It is expected China must reveal its gold reserves on being formally accepted into the IMF SDR basket perhaps later this year.

The European Union's move to label goods produced in Israeli settlements is the latest expression of international disapproval of one of the country's most controversial policies. The Palestinians view Jewish settlements in the West Bank and east Jerusalem as a major obstacle to reaching any two-state solution, saying they carve up lands expected to form a future Palestinian state. Virtually the entire international community, including the United States, views the settlements as illegal or illegitimate. Israel has long dismissed the criticism, saying most settlement growth is in areas it expects to keep in any future peace agreement and that the issue should be resolved in peace talks along with other core issues like security and borders. Many Israelis want to keep the West Bank and east Jerusalem -- territories captured from Jordan in the 1967 Arab-Israeli war -- citing security concerns as well as the deep religious significance of the territories for devout Jews.

The settlements are now home to more than 570,000 Israelis, according to the Israeli anti-settlement watchdog Peace Now. They range from small wildcat outposts on West Bank hilltops to fully developed towns with shopping malls, schools and suburban homes. Many Israelis choose to live in settlements for economic and quality-of-life reasons. Some 2.2 million Palestinians live in the West Bank, with another 300,000 in east Jerusalem.

— In 1972 there were just over 10,000 Israeli settlers, with 1,500 living in the West Bank and the rest in east Jerusalem. — Twenty years later, ahead of the Oslo peace accords between Israel and the Palestinians, there were 231,200 Israelis living in the territories, with 105,400 in the West Bank and 125,800 in east Jerusalem. — At the end of 2000, when the second Palestinian uprising began, over 365,000 Israelis lived in the territories with more than 198,000 in the West Bank and some 167,000 in east Jerusalem. — In 2008, the year before Prime Minister Benjamin Netanyahu took office, over 474,000 Israelis were living in the two territories, with about 281,000 in the West Bank and some 193,000 in east Jerusalem. — Some 570,700 settlers now live in the territories, according to the latest Peace Now figures from the end of 2014, with 370,700 in the West Bank and 200,000 in east Jerusalem.

Terms of the possible settlement under consideration center on foreclosure improprieties like so-called robo-signing and submitting apparently forged documents to the courts to speed up the process of removing troubled borrowers from homes.

An initial term sheet outlining a possible settlement emerged in March, with institutions including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo being asked to pay about $20 billion that would go toward loan modifications and possibly counseling for homeowners

The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF. The New Development Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.

The decision to establish the BRICS bank, along with a $100 billion reserve currency pool, was made in July 2014. Each of the five member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion. The bank will be headquartered in Shanghai, India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will come from Brazil.

Senior cabinet ministers are believed to be divided over whether Australia should sign up to an internationally funded infrastructure development bank that China is set to launch next month.

Australia has been under pressure from the United States not to participate in the new bank. The position of Prime Minister Tony Abbott is unclear on the issue, that could have ramifications for the final days of bedding down the Australia-China free trade agreement which the government wants concluded this year and preferably by the G20 leaders meeting in Brisbane next month. The Chinese plan is being viewed internationally in the wider geopolitical context of Chinese-US competition in the region. The Americans, who see the bank as potentially a way of China increasing its clout with countries in southeast Asia, have been strongly lobbying Australia to keep out of it. The issue is to come before cabinet imminently, as China plans to announce the bank at the APEC summit, which will be held in Beijing in November. Hockey will be in Beijing next week for the APEC finance ministers meeting, where the bank will be a topic of discussion.

With the help of international aid, foreign land grabs in the Gambella region of Ethiopia have resulted in environmental degradation, more severe economic and social inequality, and human rights abuses, according to a new study by the Oakland Institute. We Say The Land Is Not Yours collects testimony from victims of “villagization,” a policy of forced displacement started under the military Derg dictatorship and, according to many, continued to this day under the guise of land investment. The ultimate aim, according to the report, is to resettle up to 1.5 million people. Land cultivated for generations is being degraded by industrialized agriculture in hopes that foreign currency entering the economy will improve infrastructure, create jobs, and “have beneficial trickle-down effects,” the authors say. Communication between the government and locals has been limited to false promises of employment and compensation, according to the report, and victims are silenced out of fear of torture, imprisonment, or death. The Ethiopian government responded to the report, saying the accusations don’t provide sufficient detail to be verified and the “vast majority of Ethiopians have benefitted from the growth and sustainable development program.”

A new project from the International Consortium of Investigative Journalists (ICIJ) critically analyzes the World Bank’s safeguards to protect marginalized populations from the negative impacts of its own projects. The result of a year’s worth of research by 50 journalists from 21 countries, the collection of stories claims World Bank-funded projects have displaced an estimated 3.4 million people over the last decade and “financed governments and companies accused of human rights violations such as rape, murder, and torture.” In Ethiopia, ICIJ claims officials siphoned millions of dollars from the bank’s investments in health and education to fund mass eviction campaigns. Citing current and former Bank employees, ICIJ says a new safeguard policy released in 2014 would actually “give governments more room to sidestep the Bank’s standards and make decisions about whether local populations need protecting.” Oxfam’s Land Rights Policy Lead Kate Geary said in a response that these findings are supported by the Bank’s internal audits which reveal they “simply lost track of people who had to be ‘resettled.’” She called for the Bank to provide grant funding to those who have been displaced and negatively impacted, and implement fundamental reforms to live up to its own commitments to protect people.

So the normal market pressures of downward price and wage adjustments in the recession are partly counter-acted by a new monetary expansion that is delaying the necessary re-coordination of market activities. Thus, given these two pressures, prices do not fall as much as a post-recession adjustment may require and they do not rise as much or as fast as might otherwise occur due to the renewed monetary expansion.

At the moment, it’s a war of words, but very soon the debate to tax credit unions will hit the streets. This week, credit union supporters from South Florida and throughout the country will descend on Washington, D.C. to “Hike the Hill” and meet with lawmakers to stress the importance of keeping in place the federal tax exemption for credit unions. The debate is nothing new. For years, the big banks have lobbied Congress to repeal the tax exemption status. This time around, they declared war. Earlier this year, the American Bankers Association began advertising its anti-credit union message throughout Washington, and last month ABA executives wrote letters to President Barack Obama and Congress requesting a repeal of the tax exemption status. The ABA and their lobbyists complain that the growing financial stature of credit unions throughout the country proves that they should be taxed like banks. They even refer to the tax exemption as a government “expenditure,” which they claim should be eliminated as part of a larger tax reform and budget reduction package.

What the bankers fail to mention was that credit unions only hold 6 percent of all the financial assets in the United States while banks hold 93 percent. They also fail to mention that 96 million Americans are satisfied members of credit unions, and that for every dollar in new taxes the government might gain, it would be eliminating $10 of credit union member benefits. The Federal Credit Union Act of 1934 established the tax-exemption status of credit unions because the structure and goals of credit unions are far different from traditional banks. All credit unions are designated as not-for-profit, which means any and all profits made are redistributed back to credit union members in the form of higher interest rates on savings accounts and reduced fees. They offer loans at the lowest possible interest rates because their mandate is to cultivate community development by assisting working families, low income households, small businesses and the middle class.Banks operate very differently. Led by small groups of shareholders who seek to maximize return on their investment, they raise fees regardless of how much profit they accumulate. They offer loans at the highest possible interest rate because their mandate is to make money, not to assist anyone, including and especially the middle class. (It wasn’t long ago we learned this the hard way as predatory banks helped fuel the Great Recession.) The truth is, big banks want one thing and one thing only: to get bigger. They want to merge and grow and rack-in record profits so they can grow even bigger. Credit unions are the only thing standing in the way of an oligarchy of a few major banks from controlling all of the deposited funds in the country. Their pursuit to tax credit unions is aimed at eliminating their only competition so they can be free to charge as much interest and fees as they wish without restraint.

The Central Bank of Russia (CBR), on Friday, admitted domestic banks to the Russian alternative to the international SWIFT banking system. Domestic banks can access the system after signing agreements with the Central Bank. The Russian alternative to the SWIFT system is expected to be fully developed and operational by May 2015.

The Central Bank of Russia issued a statement saying that the new service would allow credit institutions to transmit SWIFT-format messages through the Bank of Russia in all regions within the Russian Federation without restrictions. The CBR added that the new service had been established to ensure continuous and secure transmissions of financial messages inside the country. The decision to create the domestic alternative to the SWIFT system was made against the backdrop of EU proposals in September, to disconnect Russia from the international SWIFT system as part of the sanctions against Russia over the situation in and about Ukraine. Several U.S. Senators lobbied in support of the measure. Moscow responded by drafting an alternative to the Brussels-based SWIFT system by creating a Russian alternative non-governmental inter-bank communication system.

The Russian Tass news agency reported that the Society for Worldwide Interbank Financial Telecommunications (SWIFT) transmits 1.8 billion transactions per year, remitting payment orders worth $6 trillion a day. Disconnecting Russia from the SWIFT system, as proposed by certain EU members in September, would not only harm the Russian economy. Disconnecting Russia from the SWIFT system before an alternative is operational would also create substantial problems for Russia’s main trading partners within the EU, which include Germany, Italy and France.

The announcement today by Israeli Defense Minister Avigdor Lieberman at the Knesset Defense and Foreign Affairs Committee, that the Trump administration warned Israel that imposing sovereignty over the West Bank would cause an “immediate crisis” between the U.S. and Israel, is spreading like wildfire. Newsweek reported the warning pointed to “a red line for the Trump administration in its relationship with the Israeli government”: “We received a direct message… imposing Israeli sovereignty [on the West Bank] would mean an immediate crisis with the new administration,” Lieberman told the Israeli parliament’s Foreign Affairs and Defense Committee. “The coalition should clearly state that there is no intention to impose [Israeli] sovereignty.” The warning came after Likud KM Miki Zohar, who advocates annexation, stated on Israeli television Channel i24 last night that the two state solution was “dead” and Palestinians, while not having full citizenship, would nonetheless enjoy rights like every citizen, except for the right to vote for the Knesset — unless they serve in the army or to “serve the country” which he hastened to assure viewers they would not do. Lieberman noted he’d been getting calls from “all of the world wanting to know if this is the position of the coalition,” continuing, “[W]e need to separate from the Palestinians and not to integrate them. The decision to annex Judea and Samaria [the West Bank] would mean the integration of 2.7 million Palestinians in Israel.” Rather confusing messaging from the Trump administration. Just last month Trump said he’d be “happy” with a one state solution “if Israel and the Palestinians are happy”. Ambassador to the UN Nikki Haley later walked that back, saying that the policy was still, two-state solution. Maybe Trump heard Palestinians are not happy. We may be hearing more on this latest development soon as Lieberman is due to meet with top U.S. administration officials this week in Washington.

Thanks to China, Christine Lagarde of the International Monetary Fund, Jim Yong Kim of the World Bank and Takehiko Nakao of the Asian Development Bank may no longer have much meaningful work to do. Beijing's move to bail out Russia, on top of its recent aid for Venezuela and Argentina, signals the death of the post-war Bretton Woods world. It’s also marks the beginning of the end for America's linchpin role in the global economy and Japan's influence in Asia. What is China's new Asian Infrastructure Investment Bank if not an ADB killer? If Japan, ADB's main benefactor, won't share the presidency with Asian peers, Beijing will just use its deep pockets to overpower it. Lagarde's and Kim’s shops also are looking at a future in which crisis-wracked governments call Beijing before Washington. 

China stepping up its role as lender of last resort upends an economic development game that's been decades in the making. The IMF, World Bank and ADB are bloated, change-adverse institutions.  When Ukraine received a $17 billion IMF-led bailout this year it was about shoring up a geopolitically important economy, not geopolitical blackmail. Chinese President Xi Jinping's government doesn't care about upgrading economies, the health of tax regimes or central bank reserves. It cares about loyalty. The quid pro quo: For our generous assistance we expect your full support on everything from Taiwan to territorial disputes to deadening the West’s pesky focus on human rights.

This may sound hyperbolic; Russia, Argentina and Venezuela are already at odds with the U.S. and its allies. But what about Europe? In 2011 and 2012, it looked to Beijing to save euro bond markets through massive purchases. Expect more of this dynamic in 2015 should fresh turmoil hit the euro zone, at which time Beijing will expect European leaders to pull their diplomatic punches. What happens if the Federal Reserve’s tapering slams economies from India to Indonesia and governments look to China for help? Why would Cambodia, Laos or Vietnam bother with the IMF’s conditions when China writes big checks with few strings attached? Beijing’s $24 billion currency swap program to help Russia is a sign of things to come. Russia, it's often said, is too nuclear to fail. As Moscow weathers the worst crisis since the 1998 default, it’s tempting to view China as a good global citizen. But Beijing is just enabling President Vladimir Putin, who’s now under zero pressure to diversify his economy away from oil. The same goes for China’s $2.3 billion currency swap with Argentina and its $4 billion loan to Venezuela. In the Chinese century, bad behavior has its rewards.

Messages found stored on Clinton’s private email server show that Berger – a convicted thief of classified documents – had been advising Clinton while she served as secretary of state and had access to emails containing classified information. For example, in an email dated Sept. 22, 2009, Berger advised Clinton advised how she could leverage information to make Israeli Prime Minister Benjamin Netanyahu more cooperative in discussions with the Obama administration over a settlement freeze.

Law firm ties Berger, Lynch, Mills Berger worked as a partner in the Washington law firm Hogan & Hartson from 1973 to 1977, before taking a position as the deputy director of policy planning at the State Department in the Carter administration. When Carter lost his re-election bid, Berger returned to Hogan & Hartson, where he worked until he took leave in 1988 to act as foreign policy adviser in Gov. Michael Dukakis’ presidential campaign. When Dukakis was defeated, Berger returned to Hogan & Hartson until he became foreign policy adviser for Bill Clinton’s presidential campaign in 1992. On March 28, WND reported Lynch was a litigation partner for eight years at Hogan & Hartson, from March 2002 through April 2010. Mills also worked at Hogan & Hartson, for two years, starting in 1990, before she joined then President-elect Bill Clinton’s transition team, on her way to securing a position as White House deputy counsel in the Clinton administration. According to documents Hillary Clinton’s first presidential campaign made public in 2008, Hogan & Hartson’s New York-based partner Howard Topaz was the tax lawyer who filed income tax returns for Bill and Hillary Clinton beginning in 2004. In addition, Hogan & Hartson in Virginia filed a patent trademark request on May 19, 2004, for Denver-based MX Logic Inc., the computer software firm that developed the email encryption system used to manage Clinton’s private email server beginning in July 2013. A tech expert has observed that employees of MX Logic could have had access to all the emails that went through her account.

The Swiss-based Bank for International Settlements has stated that the current policies of central banks and monetary authorities could lead to another financial crisis, potentially bigger than that of 2008. The warning is contained in the latest annual report of the bank, sometimes referred to as the central bankers’ bank, issued yesterday. The report expressed concerns that the present low-interest rate regime, initiated to try to overcome the effects of the 2008 crash, has pushed financial markets to new highs while lowering the rate premium for many risky loans. The BIS noted that markets had been “exuberant over the past year,” particularly in advanced economies. They were “dancing mainly to the tune of central bank decisions,” with volatility reaching historical lows and “market participants … hardly pricing in any risks.”

“Overall, it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally,” the bank stated. The “disconnect” is most clearly expressed in the United States, where the Federal Reserve’s policy of pumping trillions of dollars into financial markets has seen stock market indexes reach record highs, while the underlying economy stagnates and reverses. Last week, it was revealed that the US economy contracted almost 3 percent in the first quarter of 2014, but stock markets climbed even further in the belief that the on-going stagnation would lead to the provision of still more ultra-cheap money. The BIS noted that despite an increase in economic growth, the world economy had not shaken off its dependence on monetary stimulus. Regardless of the euphoria in financial markets, investment remained “weak.” On a global scale, the total debt of private non-financial sectors had risen by 30 percent since the global financial crisis, pushing up the ratio of this debt to global output. Moreover, a concentration on short-term growth figures ran the risk of ignoring the long-term dangers created by present monetary policies.

Al Jazeera English has once again removed an article by Columbia University professor Joseph Massad hours after publishing it. The article, “The Dahlan Factor,” appeared for several hours on the Qatar-based broadcaster’s website this morning at this link, but was later removed without explanation (the full article is republished below). The article had been extremely popular, appearing in the fifth spot on the website’s “What’s Hot” section.

Massad’s article: The Dahlan factor The Israeli and US betting on the Dahlan horse will only increase the resolve of the Palestinians and their supporters

The recent resurrection of Mohammad Dahlanby several Arab governments, Israel and the US is a most important development for the future of the Palestinian cause, Palestinian Authority (PA)-Israel negotiations, and Hamas-ruled Gaza. Dahlan is viewed, by many Palestinians, as the most corrupt official in the history of the Palestinian national movement (and there are many contenders for that title). Dahlan, it would be recalled, was the PA man in charge of Gaza after the Oslo Accords were signed, where he commanded 20,000 Palestinian security personnel who were answerable to the CIA and to Israeli intelligence. His forces would torture Hamas members in PA dungeons throughout the 1990s. His corruption, at the time, was such that he allegedly diverted over 40 percent of taxes levied against the Palestinians to his personal account in what became known as the Karni Crossing Scandal in 1997. Dahlan, who has been accused repeatedly by both Hamas and Fatah of being an agent of US, Israeli, Egyptian, and Jordanian intelligence, would attempt to stage a US-organised coup against the democratically elected Hamas government in 2007 in Gaza, an attempt that backfired on him and ended with his eviction from the Strip (I had forewarned about the coup several months before it occurred).

Moscow faces prospects of harsher sanctions this coming January as the US Congress is set to discuss a new package of anti-Russian penalties. The Russian central bank has warned the country’s lenders over potential risks. The regulator has recommended that Russian financial institutions take the necessary preventive steps in case their partner-banks are forced to stop providing connection to services by the world’s two most used payment systems – Visa and Mastercard, reports Russian business daily Vedomosti.

The Central Bank of Russia advises that Russian banks should look for an alternative sponsor that will be able substitute a current provider of Visa and MasterCard services, seal a maintenance service contract and test an opportunity of integrating.

In response to sanctions Russia has developed its own national payment system. The Mir payment system was introduced in 2015 after clients of several Russian banks were temporarily unable to use Visa and Mastercard due to US sanctions. Customers found bank issued credit cards linked to Visa and Mastercard systems no longer worked. The country issued 37 million Mir cards as of June 2018.

Germany has become the euro-zone’s first hub for international settlements in Chinese yuan, using the renminbi. More than ten German regional and international banks, including AG, Commerzbank, Deutsche Bank, DZ Bank AG, as well as Landesbank Hessen-Thüringen Girozentrale opened accounts at Bank of China in Frankfurt to facilitate the settlements in Chinese yuan. Charges are being kept low by not involving any dollar conversion.

Yuan clearing in Frankfurt “will increase the share of German SMEs using the renminbi for their trade with China to well over the current 10 percent”, reported Bloomberg. Frankfurt thus becomes the first western European center to afford and conduct transactions in yuan. Leading German and European economists and bankers commented on the development, saying that it has become apparent that the yuan has developed or will fast be developing into an international investment currency. There is a general consensus among economists that China’s approach with the renminbi and China’s loss of direct control over the value of the yuan have played a large role in that development. Similar agreements with China have been signed by Hong Kong, Taipai, Singapore, Seoul and London. Thailand, Malaysia, and other Asian countries are increasingly encouraging their traders and investors to study the use of the yuan, the renminbi, and the other opportunities China afforded by opening its economy for foreign businesses.

Another step in this development taken by China was the establishment of the Shanghai – Hong Kong Stock Connect which established a cross-trading mechanism and which allows investors access to the largest stock markets on the Chinese mainland and vice versa. Earlier this year the IMF reported that China has become the world leading economy with regard to e.g. purchasing power parity, and that describing the United States as the world’s no.1 economy was a misrepresentation.

Western policymakers and commentators wrongly assume that sanctions will force Iranian concessions in nuclear talks that resume this week in Kazakhstan - or perhaps even undermine the Islamic Republic's basic stability in advance of the next Iranian presidential election in June.  Besides exaggerating sanctions' impact on Iranian attitudes and decision-making, this argument ignores potentially fatal flaws in the US-led sanctions regime itself - flaws highlighted by ongoing developments in Europe and Asia, and that are likely to prompt the erosion, if not outright collapse of America's sanctions policy.       Virtually since the 1979 Iranian revolution, US administrations have imposed unilateral sanctions against the Islamic Republic. These measures, though, have not significantly damaged Iran's economy and have certainly not changed Iranian policies Washington doesn't like. 

Secondary sanctions are a legal and political house of cards. They almost certainly violate American commitments under the World Trade Organisation, which allows members to cut trade with states they deem national security threats but not to sanction other members over lawful business conducted in third countries. If challenged on the issue in the WTO's Dispute Resolution Mechanism, Washington would surely lose.  

Last year, the European Union - which for years had condemned America's prospective "extraterritorial" application of national trade law and warned it would go to the WTO's Dispute Resolution Mechanism if Washington ever sanctioned European firms over Iran-related business - finally subordinated its Iran policy to American preferences, banning Iranian oil and imposing close to a comprehensive economic embargo against the Islamic Republic.   In recent weeks, however, Europe's General Court overturned European sanctions against two of Iran's biggest banks, ruling that the EU never substantiated its claims that the banks provided "financial services for entities procuring on behalf of Iran's nuclear and ballistic missile programmes". 

The World Bank’s approach to human rights is disingenuous, outdated and “deeply troubling”, an independent UN investigator has said. Professor Philip Alston, the UN special rapporteur on extreme poverty and human rights, said that after 40 years of inconclusive internal discussions, the Washington-based organisation and its 188 member countries had to realise they could no longer separate human rights from development financing.

The World Bank has rejected Alston’s claims. In a recent and unusually scathing report, Alston described the bank’s approach to human rights as “incoherent, counterproductive and unsustainable”, adding that it was for most purposes, “a human rights free zone”, and an institution whose operational policies treat human rights “more like an infectious disease than universal values and obligations”.