April 2, 2015 archive

Great Moments in US Foreign Policy

The Great Game in Afghanistan: The US Is Losing Out

By Dilip Hiro, TomDispatch

Wednesday, 01 April 2015 00:00

Call it an irony, if you will, but as the Obama administration struggles to slow down or halt its scheduled withdrawal from Afghanistan, newly elected Afghan President Ashraf Ghani is performing a withdrawal operation of his own. He seems to be in the process of trying to sideline the country’s major patron of the last 13 years — and as happened in Iraq after the American invasion and occupation there, Chinese resource companies are again picking up the pieces.



In the new foreign policy that Ghani recently outlined, the United States finds itself consigned to the third of the five circles of importance.  The first circle contains neighboring countries, including China with its common border with Afghanistan, and the second is restricted to the countries of the Islamic world.

In the new politics of Afghanistan under Ghani, as the chances for peace talks between his government and the unbeaten Taliban brighten, the Obama administration finds itself gradually but unmistakably being reduced to the status of bystander. Meanwhile, credit for those potential peace talks goes to the Chinese leadership, which has received a Taliban delegation in Beijing twice in recent months, and to Ghani, who has dulled the hostility of the rabidly anti-Indian Taliban by reversing the pro-India, anti-Pakistan policies of his predecessor, Hamid Karzai.



As an official of the World Bank for 11 years, Ghani had dealt with the Chinese government frequently. This time, he left Beijing with a pledge of 2 billion yuan ($327 million) in economic aid for Afghanistan through 2017.

The upbeat statements of the two presidents need to be seen against the backdrop of the twenty-first-century Great Game in the region in which, after 13 years of American war, Chinese corporations are the ones setting records in signing up large investment deals. In 2007, the Metallurgical Corporation of China and Jiangxi Copper Corporation, a consortium, won a $4.4 billion contract to mine copper at Aynak, 24 miles southeast of Kabul. Four years later, China National Petroleum Corporation in a joint venture with a local company, Watan Oil & Gas, secured the right to develop three oil blocks in northwestern Afghanistan with a plan to invest $400 million.

In stark contrast, 70 U.S. companies had invested a mere $75 million by 2012, according to the Afghanistan Investment Support Agency. What Washington policymakers find galling is that China has not contributed a single yuan to pacify insurgency-ridden Afghanistan or participated in the U.S.-led International Security Assistance Force in that country, and yet its corporations continue to benefit from the security provided by the presence of American soldiers.

Former Blackwater gets rich as Afghan drug production hits record high

Spencer Ackerman, The Guardian

Tuesday 31 March 2015 17.13 BST

In a war full of failures, the US counternarcotics mission in Afghanistan stands out: opiate production has climbed steadily over recent years to reach record-high levels last year.

Yet there is a clear winner in the anti-drug effort – not the Afghan people, but the infamous mercenary company formerly known as Blackwater.

Statistics released on Tuesday reveal that the rebranded private security firm, known since 2011 as Academi, reaped over half a billion dollars from the futile Defense Department push to eradicate Afghan narcotics, some 32% of the $1.8bn in contracting money the Pentagon has devoted to the job since 2002.

The company is by far the biggest beneficiary of counternarcotics largesse in Afghanistan. Its closest competition, the defense giant Northrop Grumman, claimed $250m.

According to the US inspector general for Afghanistan “reconstruction”, the $569m Academi got from US taxpayers paid for “training, equipment, and logistical support” to Afghan forces conducting counternarcotics, such as “the Afghan National Interdiction Unit, the Ministry of Interior, and the Afghan Border Police”.

Far from eradicating the deep-rooted opiate trade, US counternarcotics efforts have proven useless, according to a series of recent official inquiries. Other aspects of the billions that the US has poured into Afghanistan over the last 13 years of war have even contributed to the opium boom.



Academi and its former Blackwater incarnation have an infamous history in Afghanistan. It once set up shell companies to disguise its business practices, according to a Senate report, so that its contracts would be unimpeded by company employees’ killings of Iraqi and Afghan civilians.

Serial Criminals

HSBC is ‘cast-iron certain’ to breach banking rules again, executive admits

by Harry Davies and James Ball, The Guardian

Thursday 2 April 2015 14.50 BST

A senior HSBC executive has privately admitted that the bank is “cast-iron certain” to have another major regulatory breach in the future, and is struggling on multiple fronts to clean up its worldwide operations.

Global head of sanctions Lee Hale – whose recorded comments appear to contrast with public statements from HSBC’s chief executive that the bank has fundamentally transformed itself after recent scandals – said gaps remained in the bank’s compliance with sanctions policies and the screening of certain financial transactions.



Hale was meeting with independent lawyers monitoring HSBC as part of a controversial 2012 deal with the US Department of Justice, in which the bank avoided prosecution over sanctions-busting and money-laundering in its Mexican branch in exchange for paying a $1.9bn fine and receiving additional regulatory scrutiny for a period of five years. The deferred prosecution agreement was signed by the then US attorney for the eastern district of New York, Loretta Lynch, who is now Barack Obama’s nominee for US attorney general.



Explaining the past difficulty of overhauling sanctions standards at the bank, Hale said HSBC staff were not used to providing the required level of detail for compliance to sign off dispensations. He said: “I think it’s really the first time where we’ve looked to do this with the right level of rigour … the quality of the initial submissions was not great.”

The monitor is required each year to file a lengthy report to the Department of Justice, which in turn files a much shorter summary update to a court in New York. As the agreement was signed in December 2012, the head of the DoJ’s criminal division said HSBC had the “sword of Damocles” over its head should it not follow through on its commitments.

HSBC Violates its Sweetheart Deal and Lynch Praises It

by William Black, New Economic Perspectves

April 2, 2015

HSBC got a sweetheart deal from the Obama administration.  It laundered vast amounts of money for Mexico’s murderous Sinaloa cartel, helped bust sanctions for terrorists and mass murderers, and did not cooperate with the investigation.  The U.S. Attorney in charge of the case, Loretta Lynch, refused to prosecute any of the HSBC bankers or even sue them individually.  Instead, there was a pathetic non-prosecution agreement limited to HSBC.  Lynch is accused of not contacting either of the primary whistleblowers in the case.  The failure to contact one of the whistleblowers has already blown up in Lynch’s face as it became public a few months ago that the governments of the U.S. and Europe were provided many years ago with data on HSBC’s Swiss affiliate that show it was helping terrorists, genocidal leaders, the most violent drug gangs, and tens of thousands of wealthy people evade taxes.  Lynch failed to bring that case or use any of the invaluable data provided by the whistleblower who copied the files from the Swiss bank.

Now comes word that, like Standard Chartered, HSBC is failing to abide even by the pathetic sweetheart deal Lynch gifted HSBC’s criminal managers with.  In the case of Standard Chartered, NY authorities came down on Standard Chartered with at least one foot on the neck.  Lynch is made of considerably less stern stuff.  She failed even to do the most obvious move of extending the agreement with HSBC.



HSBC’s violations were a heaven sent opportunity for Lynch to undo the massive embarrassment of the shameful deal she gave HSBC – one of the world’s largest and most destructive criminal enterprises.  She could use the “watchdog” report damning HSBC to state the reality – HSBC’s managers have acted in bad faith and violated the deal that would have got them off with no real prosecution.  Lynch could now prosecute HSBC and its senior managers for all the frauds – including the vast frauds she missed last time because of her failure to talk with the whistleblowers.  And the chances of that happening closely approach zero because Obama chose Lynch to continue Holder’s shameful policies of refusing to prosecute bankers rather than change those policies.



Holder’s refusal to prosecute the bankers has led to “repeat offenses on Wall Street.”  Ponder that which DealBook religiously refuses to ponder – if fraudulent bankers find they grow wealthy from the “sure thing” of fraud with no risk of prosecution or even being sued, why wouldn’t they respond with “repeat offenses” that would create a “pattern of corporate recidivism?”  DealBook is very sympathetic to Holder and Lynch.  They are portrayed as “grappling” with the thorny problem that because senior bankers realize that under Holder and Lynch they can grow wealthy and powerful by leading “repeat offenses” they will do so even though they promise “dad” (Holder) or “mom” (Lynch) that they’ll never do it again.  (DealBook hates to use the “f” word to describe elite bankers’ frauds.)

As DealBook (hilariously) portrays the matter, Holder and Lynch “grapple” with this intractable and apparently inconceivable (in the Princess Bride sense of the word made famous by Vizzini) problem that the elite bankers keep on committing massive felonies helping terrorists and the world’s most violent drug gangs even after they look Holder and Lynch (dad and mom) straight in the eyes and solemnly promise to never hit their little brother and steal his toy truck again.  Five minutes later, dad and mom hear a smack followed by the little brother breaking into tears and find big brother with little brother’s toy truck.  Big brother, of course, solemnly says he never hit his little brother and the truck in his hand is not his little brother’s truck.  Big brother, being sophisticated, even pleads in the alternative that if he is holding little brother’s truck it is because little brother gave him the truck.  Except, that we’re not talking about toy trucks, but senior bank officers knowingly funding mass murder and terrorism.



The truth is that Holder and Lynch are taking no meaningful efforts against what even DealBook now admits is “the pattern of corporate recidivism” by our most elite bankers.  The only thing they “grapple” with is the bad publicity arising from the stench of that “pattern” of the most despicable and harmful elite financial frauds in history.

There can be no more incriminating indictment of the Nation’s leading federal prosecutors than the fact that even the sycophantic DealBook admits that on Holder and Lynch’s watch a “pattern” of recurrent frauds by our most elite CEOs has emerged – and those frauds commonly involve profiting from the banks aiding the funding of mass murderers.  The administration has managed to turn into reality all those bad novels they sell in airport book stores that describe networks of criminal elite bankers financing terrorists, drug gangs, and venal and brutal kleptocrats with impunity from the laws.

Cartnoon

On This Day In History April 2

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

April 2 is the 92nd day of the year (93rd in leap years) in the Gregorian calendar. There are 273 days remaining until the end of the year.

On this day in 1513, Ponce de Leon discovers Florida. Near present-day St. Augustine, Spanish explorer Juan Ponce de Leon comes ashore on the Florida coast, and claims the territory for the Spanish crown.

Although other European navigators may have sighted the Florida peninsula before, Ponce de Leon is credited with the first recorded landing and the first detailed exploration of the Florida coast. The Spanish explorer was searching for the “Fountain of Youth,” a fabled water source that was said to bring eternal youth. Ponce de Leon named the peninsula he believed to be an island “La Florida” because his discovery came during the time of the Easter feast, or Pascua Florida.

First voyage to Florida

Ponce de Leon equipped three ships with at least 200 men at his own expense and set out from Puerto Rico on March 4, 1513. The only contemporary description known for this expedition comes from Antonio de Herrera y Tordesillas, a Spanish historian who apparently had access to the original ships’ logs or related secondary sources from which he created a summary of the voyage published in 1601. The brevity of the account and occasional gaps in the record have led historians to speculate and dispute many details of the voyage.

The three ships in this small fleet were the Santiago, the San Cristobal and the Santa Maria de la Consolacion. Anton de Alaminos was their chief pilot. He was already an experienced sailor and would become one of the most respected pilots in the region. After leaving Puerto Rico, they sailed northwest along the great chain of Bahama Islands, known then as the Lucayos. By March 27, Easter Sunday, they reached the northern end of the Bahamas sighting an unfamiliar island (probably Great Abaco).

For the next several days the fleet crossed open water until April 2, 1513, when they sighted land which Ponce de Leon believed was another island. He named it La Florida in recognition of the verdant landscape and because it was the Easter season, which the Spaniards called Pascua Florida (Festival of Flowers). The following day they came ashore to seek information and take possession of this new land. The precise location of their landing on the Florida coast has been disputed for many years. Some historians believe it occurred at St. Augustine; others prefer a more southern landing at a small harbor now called Ponce de Leon Inlet; and some argue that Ponce came ashore even further south near the present location of Melbourne Beach.

After remaining in the vicinity of their first landing for about five days, the ships turned south for further exploration of the coast. On April 8 they encountered a current so strong that it pushed them backwards and forced them to seek anchorage. The tiniest ship, the San Cristobal, was carried out of sight and lost for two days. This was the first encounter with the Gulf Stream where it reaches maximum force between the Florida coast and the Bahamas. Because of the powerful boost provided by the current, it would soon become the primary route for eastbound ships leaving the Spanish Indies bound for Europe.

The Breakfast Club (Ponce De Leon)

Welcome to The Breakfast Club! We’re a disorganized group of rebel lefties who hang out and chat if and when we’re not too hungover  we’ve been bailed out we’re not too exhausted from last night’s (CENSORED) the caffeine kicks in. Join us every weekday morning at 9am (ET) and weekend morning at 10:30am (ET) to talk about current news and our boring lives and to make fun of LaEscapee! If we are ever running late, it’s PhilJD’s fault.

 photo 807561379_e6771a7c8e_zps7668d00e.jpg

Breakfast Tune: Ponce De Leon/ Banjo/ Mary Z Cox

Today in History


Highlights of Today in History: Pope John Paul II Dies at 84; President Woodrow Wilson asks Congress to declare war on Germany; Juan Ponce de Leon lands in Florida; Falkland Islands seized from Britain; Hans Christian Andersen Born. (April 2)

Breakfast News & Blogs Below