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SPHERES OF INFLUENCE: OURS AND THEIRS

In Bureaucracy, History, Military, Politics on August 21, 2014 at 10:27 pm

It didn’t take much for American Right-wingers to start salivating–and celebrating.

All it took was for Russia to move troops into its neighboring territories of Ukraine and Crimea.

Ever since the collapse of the Soviet Union in 1991, the American Right has felt dejected. Accusing Democrats of being “terrorist-lovers” just hasn’t been as profitable as accusing them of being “Communists.”

The torch had barely gone out at the much-ballyhooed Sochi Olympics when Russian President Vladimir Putin began menacing the Ukraine.

Even while the Olympics played out on television, Ukrainians had rioted in Kiev and evicted their corrupt, luxury-loving president, Victor Yanukovych.

And this, of course, didn’t sit well with his “sponsor”–Putin.

Yanukovych had rejected a pending European Union association agreement. He had chosen instead to pursue a Russian loan bailout and closer ties with Russia.

And that had sat well with Putin.

Since the breakup of the Soviet Union in 1991, Putin had yearned for a reestablishment of the same. He had called that breakup “the greatest geopolitical tragedy of the 20th century.”

So it was almost a certainty that, when his chosen puppet, Yanukovych, was sent packing, Putin would find some way to retaliate.

And since late February, he has done so, gradually moving Russian troops into Ukraine and its autonomous republic, Crimea.

By late March, it was clear that Russia had sufficient forces in both Ukraine and Crimea to wreak any amount of destruction Putin may wish to inflict.

And where there is activity by Russians, there are American Rightists eager–in Shakespeare’s words–to “cry havoc and let slip the dogs of war.”

Or at least to use such events to their own political advantage.

Right-wingers such as Mitt Romney, the former governor of Massachussetts who lost the 2012 Presidential election by a wide margin to Barack Obama.

“There’s no question but that the president’s naiveté with regards to Russia,” said Romney on March 23.

“And unfortunately, not having anticipated Russia’s intentions, the president wasn’t able to shape the kinds of events that may have been able to prevent the kinds of circumstances that you’re seeing in the Ukraine, as well as the things that you’re seeing in Syria.”

All of which overlooks a number of brutal political truths.

First, all great powers have spheres of interest–and jealously guard them.

For the United States, it’s Latin and Central America, as established by the Monroe Doctrine.

And just what is the Monroe Doctrine?

It’s a statement made by President James Monroe in his 1823 annual message to Congress, which warned European powers not to interfere in the affairs of the Western Hemisphere.

It has no other legitimacy than the willingness of the United States to use armed force to back it up. When the United States no longer has the will or resources to enforce the Doctrine, it will cease to have meaning.

For the Soviet Union, its spheres of influence include the Ukraine. Long known as “the breadbasket of Russia,” in 2011, it was the world’s third-largest grain exporter.

Russia will no more give up access to that breadbasket than the United States would part with the rich farming states of the Midwest.

Second, spheres of influence often prove disastrous to those smaller countries affected.

Throughout Latin and Central America, the United States remains highly unpopular for its brutal use of “gunboat diplomacy” during the 20th century.

Among those countries invaded or controlled by America: Cuba, Guatemala, Nicaragua, Columbia, Panama, the Dominican Republic.

The resulting anger has led many Latin and Central Americans to support Communist Cuba, even though its political oppression and economic failure are universally apparent.

Similarly, the Union of Soviet Socialist Republics (U.S.S.R.) forced many nations–such as Poland, Hungary and Czechoslavakia–to submit to the will of Moscow.

The alternative? The threat of Soviet invasion–as occurred in Hungary in 1956 and Czechoslavakia in 1968.

Third, even “great powers” are not all-powerful.

In 1949, after a long civil war, the forces of Mao Tse-tung defeated the Nationalist armies of Chaing Kai-Shek, who withdrew to Taiwan.

China had never been a territory of the United States. Nor could the United States have prevented Mao from defeating the corrupt, ineptly-led Nationalist forces.

Even so, Republican Senators and Representatives such as Richard Nixon and Joseph McCarthy eagerly blamed President Harry S. Truman and the Democrats for “losing China.”

The fear of being accused of “losing” another country led Presidents John F. Kennedy, Lyndon B. Johnson and Richard M. Nixon to tragically commit the United States to “roll back” Communism in Cuba and Vietnam.

Now Republicans–who claim the United States can’t afford to provide healthcare for its poorest citizens–want to turn the national budget over to the Pentagon.

They want the United States to “intervene” in Syria–even though this civil war pits Al Qaeda and Hezbollah, two of America’s greatest enemies, against each other.

They want the United States to “intervene” in Ukraine–even though this would mean going to war with the only nuclear power capable of turning America into an atomic graveyard.

Before plunging into conflicts that don’t concern us and where there is absolutely nothing to “win,” Americans would do well to remember the above-stated lessons of history. And to learn from them.

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GREED WILL FIND A WAY

In Bureaucracy, Business, History, Law, Politics on August 4, 2014 at 10:17 am

When William J. Casey–the future director of the Central Intelligence Agency– was a young attorney, he learned an important lesson.

During the Great Depression, jobs were hard to come by. So Casey thought himself lucky to land one at the Tax Research Institute of America in New York.

His task was to closely read New Deal legislation and write reports explaining it to corporate chieftains.

He quickly learned that businessmen neither understood nor welcomed Franklin D. Roosevelt’s efforts to reform American capitalism.

Businessmen didn’t want legal commentary. Instead, they wanted to know: “What’s the minimum we have to do to comply with the law?”

In short: How do we get by FDR’s new programs?

Fifty years later, Casey would bring a similar mindset to his duties as director of the Central Intelligence Agency for President Ronald Reagan.

William J. Casey

He was presiding over the CIA when it repeatedly violated Congress’ ban on funding the “Contras,” the right-wing death squads of Nicaragua. The resulting scandal almost destroyed the CIA

But the “Casey Doctrine” of minimum compliance didn’t die with Casey (who expired of a brain tumor in 1987).

It’s very much alive among the American business community as President Barack Obama seeks to give medical coverage to all Americans, and not simply the ultra-wealthy.

The single most important provision of the Affordable Care Act (ACA)–better known as Obamacare–requires large businesses to provide insurance to full-time employees who work more than 30 hours a week.

For part-time employees, who work fewer than 30 hours, a company isn’t penalized for failing to provide health insurance coverage.

Obama prides himself on being a tough-minded practitioner of “Chicago politics.” So it’s easy to assume that he took the “Casey Doctrine” into account when he shepherded the ACA through Congress.

But he didn’t.

The result was predictable. And its consequences are daily becoming more clear.

Employers feel motivated to move fulltime workers into part-time positions–and thus avoid

providing their employees with medical insurance and
a fine for non-compliance with the law.

Some employers have openly shown their contempt for President Obama–and the idea that employers actually have an obligation to those who make their profits a reality.

The White Castle hamburger chain is considering hiring only part-time workers in the future to escape its obligations under Obamacare.

No less than Jamie Richardson, its vice president, has admitted this in an interview.

“If we were to keep our health insurance program exactly like it is with no changes, every forecast we’ve looked at has indicated our costs will go up 24%.”

Richardson claimed the profit per employee in restaurants is only $750 per year. So, as he sees it, giving health insurance to all employees over 30 hours isn’t feasible.

Nor is Richardson the only corporate executive determined to shirk his responsibility to his employees.

John Schnatter, CEO of Papa John’s Pizza, has been quoted as saying:

The prices of his pizzas will go up–by eleven to fourteen cents price increase per pizza, or fifteen to twenty cents per order; and
He will pass along these costs to his customers.

“If Obamacare is in fact not repealed,” Schnatter told Politico, “we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders’ best interests.”

After all, why should a multi-million-dollar company show any concern for those who make its profits a reality?

John Schnatter

Consider:

Papa John’s is the third-largest pizza takeout and delivery chain in the United States.
Its 2012 revenues were $318.6 million, an 8.5 percent increase from 2011 revenues of $293.5 million.
Its 2012 net income was $14.8 million, compared to its 2012 net income of $12.1 million.

In May, 2012, Schnatter hosted a fundraising event for Republican Presidential candidate Mitt Romney at his own Louisville, Kentucky mansion.

“What a home this is,” gushed Romney. “What grounds these are, the pool, the golf course.

“You know, if a Democrat were here he’d look around and say no one should live like this. Republicans come here and say everyone should live like this.”

Of course, Romney conveniently ignored a brutally ugly fact:

For the vast majority of Papa John’s minimum-wage-earning employees-–many of them working only part-time-–the odds of their owning a comparable estate are non-existent.

Had Obama been the serious student of Realpolitick that he claims to be, he would have predicted that most businesses would seek to avoid compliance with his law.

And had he been the ruthless practitioner of “Chicago politics,” as his enemies claim, he would have required all employers to provide insurance coverage for all of their employees—regardless of their fulltime or part-time status.

This, in turn, would have provided two substantial benefits:

All employees would have been able to obtain medical coverage; and
Employers would have been encouraged to provide fulltime positions rather than part-time ones, since they would feel: “Since I’m paying for fulltime insurance coverage, I should be getting fulltime work in return.”

The “Casey Doctrine” needs to be kept constantly in mind when reformers try to protect Americans from predatory employers.

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MICHAEL CORLEONE IS SMILING: PART THREE (END)

In Bureaucracy, History, Military, Politics on July 28, 2014 at 10:39 am

John and Robert Kennedy knew what they were doing. They waged a vicious war against Fidel Castro–a war someone had to lose.”

So writes Gus Russo in Live By the Sword: The Secret War Against Castro and the Death of JFK, published in 1998.

During the Cuban Missile Crisis, Robert Kennedy–referring to the 1941 Japanese attack on Pearl Harbor–had resisted demands for a “sneak attack” on Cuba by saying: “I don’t want my brother to be the Tojo of the 1960s.”

But in the fall of 1963, the Kennedys planned such an attack on Cuba just one month before the November, 1964 Presidential election.

In what is almost certainly the definitive account of the assassination of President John F. Kennedy, Russo reaches some startling–but highly documented–conclusions:

Lee Harvey Oswald assassinated Kennedy.
He did it alone.
Oswald, a former Marine, was a committed Marxist–whose hero was Castro.
The CIA’s ongoing campaign to overthrow and/or assassinate Castro was an open secret throughout the Gulf.
Oswald visited New Orleans in the spring of 1963.
There he learned that Castro was in the crosshairs of the CIA.
Oswald told his Russian-born wife, Marina: “Fidel Castro needs defenders. I’m going to join his army of volunteers.”
Jack Ruby, a Dallas nightclub owner, murdered Oswald because he was distraught over Kennedy’s death.
Ruby was not part of a Mafia conspiracy to silence Oswald.
Skeptics of the Warren Commission–which concluded that Oswald had acted alone–asked the wrong question: “Who killed Kennedy?”
They should have asked: “Why was he killed?”
The answer–according to Russo: “The Kennedys’ relentless pursuit of Castro and Cuba backfired in tragedy on that terrible day in November, 1963.”

Lee Harvey Oswald

Another book well worth reading about America’s Cuban obsession during the early 1960s is American Tabloid, by James Ellroy.

Although a novel, it vividly captures the atmosphere of intrigue, danger and sleaziness that permeated that era in a way that dry, historical documents never can.

“The 50s are finished,” reads its paperback dust jacket. “Zealous young lawyer Robert Kennedy has a red-hot jones to nail Jimmy Hoffa. JFK has his eyes on the Oval Office.

“J. Edgar Hoover is swooping down on the Red Menace. Howard Hughes is dodging subpoenas and digging up Kennedy dirt. And Castro is mopping up the bloody aftermath of his new Communist nation….

“Mob bosses, politicos, snitches, psychos, fall guys and femmes fatale. They’re mixing up a Molotov cocktail guaranteed to end the country’s innocence with a bang.”

Among the legacies of America’s twisted romance with anti-Castro Cubans:

Following the JFK assassination, there was a coverup–to safeguard the reputation of the United States government and that of its newly-martyred President.
Thus, the CIA and FBI concealed the anti-Castro assassination plots from the Warren Commission investigating Kennedy’s assassination.
Other participating officials in the cover-up included Attorney General Robert F. Kennedy and President Lyndon B. Johnson.
This secrecy ignited the widespread–and false–belief that the President had died at the hands of a government conspiracy.
Robert Kennedy feared that his relentless pursuit of Castro might have backfired against JFK, leading Castro to “take out” the President first.
Fearing his own assassination if he continued Kennedy’s efforts to murder Castro, President Johnson ordered the CIA to halt its campaign to overthrow and/or assassinate the Cuban leader.
The huge Cuban community throughout Florida–and especially Miami–continues to exert a blackmail influence on American politics.
Right-wing politicians from Richard Nixon to Newt Gingrich have reaped electoral rewards by catering to the demands of this hate-obsessed voting block.
As a result, the United States still refuses to open diplomatic relations with Cuba–even though it has done so with such former enemies as the Soviet Union, China and Vietnam.
Cuban ex-patriots still hope that the United States will launch a full-scale military invasion of the island to remove Castro.
These alleged Cuban patriots fear to risk their own lives by returning to Cuba and launching an uprising against him.

That crisis stemmed from our twisted obsession with Cuba, an obsession that continues today.

Texas Congressman Ron Paul is correct:

“But I think it’s time…to quit this isolation business of not talking to people. We talked to the Soviets. We talk to the Chinese. And we opened up trade, and we’re not killing each other now.

“We fought with the Vietnamese for a long time. We finally gave up, started talking to them, now we trade with them. I don’t know why…the Cuban people should be so intimidating.”

It’s time to end the half-century contamination of American politics by those Cubans who live for their hatred of Fidel Castro and those political candidates who live to exploit it.

It’s long past time to end this wag-the-dog relationship. A population of about 1,700,000 Cubans should not be allowed to shape the domestic and foreign policy of a nation of 300 million.

Those who continue to hate–or love–Castro should be left to their own private feud. But that is a feud they should settle on their own island, and not from the shores of the United States.

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MICHAEL CORLEONE IS SMILING: PART TWO (OF THREE)

In Bureaucracy, History, Military, Social commentary on July 25, 2014 at 1:01 pm

On April 17, 1961, the U.S. Navy landed 1,700 CIA-trained Cuban exiles ashore at Cuba’s Bay of Pigs.

President John F. Kennedy–wanting to disguise the role of the United States in the invasion–refused to commit U.S. Marines and Air Force bombers to the invasion.

Long forewarned of the coming invasion, Fidel Castro sent in his forces to decimate the invaders.

Kennedy took responsibility for the failure. But privately he blamed Castro for refusing to be overthrown.

As a result, Kennedy and his brother, Robert–then Attorney General–created their own covert operation to depose Castro.

Robert and John F. Kennedy

Known as the Special Group, and overseen by Robert Kennedy, it launched a secret war against the Castro regime, code-named Operation Mongoose.

“We were hysterical about Castro at about the time of the Bay of Pigs and thereafter,” Secretary of Defense Robert S. McNamara later testified before Congress about these efforts. “And there was pressure from JFK and RFK to do something about Castro.”

Robert S. McNamara

Nor was everyone in the CIA enthusiastic about the “get Castro” effort.

“Everyone at CIA was surprised at Kennedy’s obsession with Fidel,” recalled Sam Halpern, who was assigned to the Cuba Project. “They thought it was a waste of time. We all knew [Castro] couldn’t hurt us. Most of us at CIA initially liked Kennedy, but why go after this little guy?

“One thing is for sure: Kennedy wasn’t doing it out of national security concerns. It was a personal thing. The Kennedy family felt personally burnt by the Bay of Pigs and sought revenge.”

It was all-out war. Among the tactics used:

Hiring Cuban gangsters to murder Cuban police officials and Soviet technicians.
Sabotaging mines.
Paying up to $100,000 per “hit” for the murder or kidnapping of Cuban officials.
Using biological and chemical warfare against the Cuban sugar industry.

“Bobby (Kennedy) wanted boom and bang all over the island,” recalled Halpern. “It was stupid. The pressure from the White House was very great.”

Among that “boom and bang” were a series of assassination plots against Castro, in which the Mafia was to be a key player.

Chicago Mobster Johnny Rosselli proposed a simple plan: through its underworld connections in Cuba, the Mafia would recruit a Cuban in Castro’s entourage, such as a waiter or bodyguard, who would poison him.

The CIA’s Technical Services division produced a botulinus toxin which was then injected into Castro’s favorite brand of cigars. The CIA also produced simpler botulinus toxin pills that could be dissolved in his food or drink.

But the deputized Mafia contacts failed to deliver any of the poisons to Castro.

Fidel Castro

As Rosselli explained to the CIA, the first poisoner had been discharged from Castro’s employ before he could kill him, while a back-up agent got “cold feet.”

Other proposals or attempts included:

Planting colorful seashells rigged to explode at a site where Castro liked to go skindiving.
Trying to arrange for his being presented with a wetsuit impregnated with noxious bacteria and mould spores, or with lethal chemical agents.
Attempting to infect Castro’s scuba regulator with tuberculous bacilli.
Trying to douse his handkerchiefs, tea and coffee with other lethal bacteria.

Americans would rightly label such methods as “terrorist” if another power used them against the United States today. And the Cuban government saw the situation exactly the same way.

So Castro appealed to Nikita Khrushchev, leader of the Soviet Union, for assistance.

Nikita Khrushchev

Khrushchev was quick to comply: “We must not allow the communist infant to be strangled in its crib,” he told members of his inncer circle.

By October, 1962, the Soviet Union had sent more than 40,000 soldiers, 1,300 field pieces, 700 anti-airctaft guns, 350 tanks and 150 jets to Cuba to deter another invasion.

Khrushchev also began supplying Castro with nuclear-tipped ballistic missiles–whose discovery, on October 15, 1962, ignited the single most dangerous confrontation of the Cold War.

Suddenly, the two most powerful nuclear countries–the United States and the Soviet Union–found themselves on the brink of nuclear war.

John F. Kennedy in the Oval Office

At the time, Kennedy officials claimed they couldn’t understand why Khrushchev had placed nuclear missiles in Cuba. “Maybe Khrushchev’s gone mad” was a typical musing.

None of these officials admitted that JFK had been waging a no-holds-barred campaign to overthrow the Cuban government and assassinate its leader.

The crisis ended when, after 13 harrowing days, Khrushchev agreed to remove the missiles from Cuba. Behind its resolution lay a promise by the Kennedy administration to not invade Cuba.

But President Kennedy was not finished with Castro. While continuing the campaign of sabotage throughout Cuba, the Kennedys were preparing something far bigger: A fullscale American invasion of the island.

On October 4, 1963, the Joint Chiefs of Staff submitted its latest version of the invasion plan, known as OPLAN 380-63. Its timetable went:

January, 1964: Infiltration into Cuba by Cuban exiles.
July 15, 1964: U.S. conventional forces join the fray.
August 3, 1964: All-out U.S. air strikes on Cuba.
October 1, 1964: Full-scale invasion to install “a government friendly to the U.S.”

But then fate–in the otherwise unimpressive form of Lee Harvey Oswald–suddenly intervened.

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MICHAEL CORLEONE IS SMILING: PART ONE (OF THREE)

In Bureaucracy, History, Military, Politics on July 24, 2014 at 11:51 am

On January 23, 2012, Newt Gingrich, Rick Santorum, Mitt Romney and Ron Paul–all seeking the Republican nomination for President–attended a candidates’ debate in Tampa, Florida.

Gingrich, Santorum and Romney played to the huge–and influential–Cuban community in Florida, especially in Miami.

All three had carefully avoided military service. But all three “chickenhawks” now wanted to show how eagerly they could send others into harm’s way.

Former House Speaker Gingrich spoke for all three when he said: “The policy of the United States should be aggressively to overthrow the [Castro] regime and to do everything we can to support those Cubans who want freedom.”

Only Texas Congressman Ron Paul–who had served as a flight surgeon in the U.S. Air Force from 1963 to 1968–dared to call for normalization of relations between the United States and Cuba.

But even Paul refused to say that the “chickenhawk” bravado of his fellow Republicans ignored a great many ugly historical truths. Among these:

In 1959, Fidel Castro swept triumphantly into Havana after a two-year guerrilla campaign against Cuban dictator Fulgencio Batista.
Before Castro’s takeover in 1959, Cuba had been a playground for wealthy American businessmen–and Mafiosi.
Castro quickly nationalized Cuban businesses–especially the sugar-producing ones.
Gangsters who had been heavily involved in running casinos were arrested, imprisoned or unofficially deported to the United States.
The Mob–eager to reclaim its casino investments–agreed to help the CIA assassinate Castro.
Among the conspirators were such powerful mobsters as Santos Trafficante, Carlos Marcello, Johnny Roselli and Sam Giancana.
Almost immediately, hundreds of thousands of Cubans began fleeing to America. The first emigres were more than 215,000 Batista followers.
The exodus escalated, peaking at approximately 78,000 in 1962.

In October, 1962, Castro stopped regularly scheduled travel between the two countries, and asylum seekers began sailing from Cuba to Florida.
Between 1962 and 1979, hundreds of thousands of Cubans entered the United States under the Attorney General’s parole authority.
The overwhelming majority of Cubans who immigrated into the United States settled in Florida, whose political, economic, and cultural life they transformed.
By 2008, more than 1.24 million Cuban Americans were living in the United States, mostly in South Florida, where the population of Miami was about one-third Cuban.
Many of these Cubans viewed themselves as political exiles, rather than immigrants, hoping to return to Cuba after its communist regime fell from power.
The large number of Cubans in South Florida, particularly in Miami’s “Little Havana,” allowed them to preserve their culture and customs to a degree rare for immigrant groups.
These discontented immigrants became a potential force for politicians to court.
Unsurprisingly, most of their votes went to Right-wing Republicans.

John F. Kennedy was the first President to face this dilemma.

John F. Kennedy

During the closing months of the administration of President Dwight D. Eisenhower, the CIA had begun training Cuban exiles for an invasion of their former homeland.

The goal: To do what Castro had done–seek refuge in the mountains and launch a successful anti-Castro revolution.

But word of the coming invasion quickly leaked: The exiles were terrible secret-keepers. (A joke at the CIA went: “A Cuban thinks a secret is something you tell to only 300 people.”)

Kennedy insisted the invasion must appear to be an entirely Cuban enterprise. He refused to commit U.S. Marines and Air Force bombers.

The invasion force was quickly overwhelmed at the Bay of Pigs, with hundreds of its men taken prisoner.

Kennedy publicly took the blame for its failure: “Victory has a hundred fathers but defeat is an orphan.” But privately he seethed, and ordered the CIA to redouble its efforts to remove Castro at all costs.

To make certain his order was carried out, he appointed his brother, Robert–then Attorney General–to oversee the CIA’s “Castro removal” program.

It’s here that America’s obsession with Cuba entered its darkest and most disgraceful period.

The CIA and the Mafia entered into an unholy alliance to assassinate Castro–each for its own benefit.

The CIA wanted to please Kennedy. The Mafia wanted to regain its casino and brothel holdings that had made Cuba the playground of the rich in pre-Castro times.

The CIA supplied poisons and explosives to various members of the Mafia. It was then up to the mobsters to assassinate Castro.

The available sources disagree on what actually happened. Some believe that the Mob made a genuine effort to “whack” Fidel.

Others are convinced the mobsters simply ran a scam on the government. They pretended to carry out their “patriotic duty” while in fact making no effort at all to penetrate Castro’s security.

The mobsters hoped to use their pose as patriots to win immunity from future prosecution.

The CIA asked John Roselli, a mobster linked to the Chicago syndicate, to go to Florida in 1961 and 1962 to organize assassination teams of Cuban exiles. They were to infiltrate their homeland and assassinate Castro.

John Roselli

Rosselli called upon two other crime figures: Chicago Mafia boss Sam Giancana and Santos Trafficante, the Costra Nostra chieftain for Cuba, to help him.

Giancana, using the name “Sam Gold” in his dealings with the CIA, was being hounded by the FBI on direct orders of Attorney General Kennedy.

Sam Giancana

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THE REAL “TAKERS”: THE RICH

In Bureaucracy, Business, Politics, Social commentary on May 13, 2014 at 1:42 pm

Ann Coulter, the Republican version of the Miss America Nazi, was devastated by the November 6 defeat of Mitt Romney.

“People are suffering,” she whined. “The country is in disarray. If Mitt Romney cannot win in this economy, then the tipping point has been reached.

“We have more takers than makers and it’s over. There is no hope.”

Ann Coulter

Actually, Coulter was right–but not in the way she thought she was.

The “takers” are not the “have-nots” who depend on government for assistance. They are the “more-than-haves” who cheat the government of billions in lost tax revenues.

In 2012, Tax Justice Network, which campaigns to abolish tax havens, commissioned a study of their effect on the world’s economy.

The study was entitled, “The Price of Offshore Revisited: New Estimates for ‘Missing’ Global Private Wealth, Income, Inequality and Lost Taxes.”

http://www.taxjustice.net/cms/upload/pdf/Price_of_Offshore_Revisited_120722.pdf

The research was carried out by James Henry, former chief economist at consultants McKinsey & Co. Among its findings:

By 2010, at least $21 to $32 trillion of the world’s private financial wealth had been invested virtually tax-free through more than 80 offshore secrecy jurisdictions.
Since the 1970s, with eager (and often aggressive and illegal) assistance from the international private banking industry, private elites in 139 countries had accumulated $7.3 to $9.3 trillion of unrecorded offshore wealth by 2010.
This happened while many of those countries’ public sectors were borrowing themselves into bankruptcy, suffering painful adjustment and low growth, and holding fire sales of public assets.
The assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments.
Local elites continue to vote with their financial feet while their public sectors borrow heavily abroad.
First World countries do most of the borrowing.
Of the $7.3–$9.3 trillion of offshore wealth belonging to residents of these 139 countries, the top 10 countries account for 61% and the top 20 for 81%.
The offshore industry has many levels of protection: Private bankers, lawyers and accountants get paid handsomely to hide their clients assets and identities. These groups also maintain influential lobbies.
Bank regulators and central banks of most individual countries typically view private banks as key clients. They have long permitted the world’s top tax havens and banks to conceal the ultimate origins and ownership of assets under their supervision, especially those held in off-balance sheet trusts and
fiduciary accounts.
Although multilateral institutions like the Bank for International Settlements (BIS), the IMF and the World Bank are supposedly insulated from politics, they have been highly compromised by the collective interests of Wall Street.
These regulatory bodies have never required financial institutions to fully report their cross-border customer liabilities, deposits, customer assets under management or under custody.
All conventional measures of inequality sharply understate the levels of income and wealth inequality at both the country and global level.
Less than 100,000 people, .001% of the world’s population, now control over 30% of the world’s financial wealth.
The impact on lost tax revenue may be huge–large enough to make a significant difference to the finances of nations.
Assuming that global offshore financial wealth of $21 trillion earns a total return of just 3% a year, and would have been taxed an average of 30% in the home country, this unrecorded wealth might have generated tax revenues of $189 billion per year.

Summing up this situation, the report notes: “We are up against one of society’s most well-entrenched interest groups. After all, there’s no interest group more rich and powerful than the rich and powerful.”

Yet the study reveals two bright spots for countries fed up with being bled dry by those parasites whose allegiance runs only to their wallets.

A huge pile at least $21 trillion of untapped financial wealth has been discovered–monies that can be called upon to help solve the most pressing global problems.
A substantial fraction of this wealth is being managed by the top 50 players in the global private banking industry.

As a result, these findings allow nations’ leaders to:

Prevent the abuses that have lead to off-the-books wealth accumulation in the future.
Make use of the huge stock of accumulated, untaxed wealth that is already there, as well as the steady stream of untaxed earnings that it generates.

It was Stephen Decatur, the naval hero of the War of 1812, who famously said: “Our country, right or wrong.”

Stephen Decatur

Billionaire tax-cheats like those uncovered in the above-cited report have coined their own motto: “My wallet–first and always.”

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THE TRUTH CAN MAKE US FREE

In Bureaucracy, History, Politics, Social commentary on April 18, 2014 at 12:15 am

Once in a while, a politician slips up.

He forgets the presence of his PR handlers. He wanders off his carefully-prepared script. He gets so angry at reporters that he does something he would never otherwise do.

He blurts out the truth–about what he actually intends to do, or how he actually feels about an issue.

For at least a few days, the news media converges on the politician–who rushes to the safety of his PR reps.

They, in turn, quickly issue press releases to “explain” what the politician “really meant to say”:

He was “misunderstood.”
He was “misquoted.”
He’s the victim of a press “vendetta.”

Perhaps the most famous such “here’s-what-I-meant-to-say” statement was issued by Ron Ziegler, press secretary for President Richard M. Nixon during the Watergate scandal.

Starting on June 17, 1972, the Washington Post had investigated a series of crimes committed by Nixon operatives to ensure his re-election.

For the next 10 months, Ziegler and other Nixon administration officials denied any wrongdoing–and viciously attacked the Post as waging a vendetta against Nixon.

Then, on April 17, 1973, Ziegler once again stood before the White House press corps to offer yet another prepared statement: “This is the operative statement. The others are inoperative.”

Ron Ziegler

By which he meant: “The statement I’m making now is the truth. All the previous statements were lies.”

In 2012, the Republican party once again faced a “truth-will-out” scandal.

On August 19, 2012, Rep. Todd Akin (R-Mo.) justified his opposition to abortion by claiming that victims of “legitimate rape” rarely get pregnant.

During a TV interview, the GOP nominee for the U.S. Senate was asked if he supported abortion in the case of rape. He replied:

“From what I understand from doctors, that’s really rare. If it’s a legitimate rape, the female body has ways to try to shut that whole thing down.

“But let’s assume maybe that didn’t work or something. I think there should be some punishment, but the punishment ought to be on the rapist, and not attacking the child.”

Todd Akin

Akin won the Republican primary on August 7–but then lost to incumbent Senator Claire McCaskill (D-Mo.). in November, 2012.

McCaskill was quick to issue a response.

“It is beyond comprehension that someone can be so ignorant about the emotional and physical trauma brought on by rape. The ideas that Todd Akin has expressed about the serious crime of rape and the impact on its victims are offensive.”

This was not the first time Akin “misspoke” on abortion.

On August 8, 2012, he said during a radio interview: “As far as I’m concerned, the morning-after pill is a form of abortion, and I think we just shouldn’t have abortion in this country.”

But the firestorm of outrage that greeted his “legitimate rape” comment caught Akin by surprise. So he did what politicians do when they’ve mistakenly told the truth.

With the help of his PR handlers, he “clarified” his previous statement:

“In reviewing my off-the-cuff remarks, it’s clear that I misspoke in this interview and it does not reflect the deep empathy I hold for the thousands of women who are raped and abused every year.

“I recognize that abortion, and particularly in the case of rape, is a very emotionally charged issue.

“But I believe deeply in the protection of all life and I do not believe that harming another innocent victim is the right course of action.”

Mitt Romney, awaiting his nomination as the Republican Presidential candidate, also bitterly opposed abortion and wanted to make it illegal once again.

But Romney also didn’t expect a firestorm to erupt over Akin’s truth-blurb. Thus, on the day Akin revealed his true feelings about women, Romney’s spokeswoman, Andrea Saul, told the Huffington Post:

“Governor Romney and Congressman Ryan disagree with Mr. Akin’s statement, and a Romney-Ryan administration would not oppose abortion in instances of rape.”

Clearly, Romney believed that would be enough. The press would move on to another issue and he would be off the hook once again.

Only the press didn’t move on to another issue.

Akin’s comment obviously recalled to voters the libelous statements made earlier in 2012 by Rush Limbaugh against Georgetown University Law student Sandra Fluke.

Rush Limbaugh

In these, Limbaugh–America’s porcine version of Nazi Propaganda Minister Joseph Goebbels–called Fluke a “slut” and “a prostitute” because she had urged Congress to make insurance companies cover contraception expenses.

Desperate to make the issue go away, Romney told National Review Online: ”Congressman’s Akin comments on rape are insulting, inexcusable, and, frankly, wrong.

“Like millions of other Americans, we found them to be offensive.”

What Romney and his fellow Republicans truly found offensive was this: Akin’s statement threatened to deny them the power they sought to rule Americans’ lives.

And, on November 6, 2012, Aiken’s unintended truth-telling cost the Republicans the White House.

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NO SENSE OF DECENCY

In Bureaucracy, Politics, Social commentary on April 4, 2014 at 12:05 am

“Senator, may we not drop this?….You’ve done enough. Have you no sense of decency, sir? At long last, have you left no sense of decency?”

The speaker was Joseph N. Welch, chief counsel for the United States Army–then under investigation by Joseph McCarthy’s Senate Permanent Submittee on Investigations for alleged Communist activities.

It was June 9, 1954, the 30th day of the Army-McCarthy hearings.

And it was the pivotal moment that finally destroyed the career of the Wisconsin Senator whose repeated slanders of Communist subversion had bullied and frightened Americans for four years.

Joseph R. McCarthy

When the Senate gallery erupted in applause, McCarthy–totally surprised at his sudden reverse of fortune–was finished.

Today, however, other Americans could stand to remember the question asked by Welch: “At long last, have you left no sense of decency?”

Americans like Herman Cain.

Herman Cain

On January 28, 2012, he threw whatever support he might still among the radical right to GOP Presidential candidate Newt Gingrich.

Newt Gingrich

Appearing with Gingrich at a Republican fundraiser, Cain said: “Speaker Gingrich is a patriot. Speaker Gingrich is not afraid of bold ideas.

“I don’t care about where he stands in the polls. And whether my endorsement helps him or not, that’s not the point.

“It’s to let my supporters know that he is the closest to what I represented when I was still a candidate.”

“The closest to what I represented when I was still a candidate”? That’s hardly a compliment.

Cain withdrew from the race in December, 2011–after four women charged him with sexual harassment during his tenure as CEO of the National Restaurant Association.

Gingrich, a notorious serial adulterer, twice began affairs and issued marriage proposals while he was still married to his first and second wives.

Then there’s Donald Trump.

Donald Trump

On April 17, 2011, toying with the idea of entering the Presidential race himself, he said this about Mitt Romney, the former Massachusetts governor and GOP candidate:

“He’d buy companies. He’d close companies. He’d get rid of jobs. I’ve built a great company. I’m a much bigger businessman and have a much, much bigger net worth.

“I mean my net worth is many, many, many times Mitt Romney.

“Mitt Romney is a basically small-business guy, if you really think about it. He was a hedge fund. He was a funds guy.

“He walked away with some money from a very good company that he didn’t create. He worked there. He didn’t create it.”

Trump added that Bain Capital, the hedge fund where Romney made millions of dollars before running for governor, didn’t create any jobs.

Whereas Trump claimed that he–Trump–had created “hundreds of thousands of jobs.”

So at least some observers must have been puzzled when Trump announced, on February 2, 2012: “It’s my honor, real honor, and privilege to endorse Mitt Romney” for President.

“Mitt is tough, he’s smart, he’s sharp, he’s not going to allow bad things to continue to happen to this country that we all love. So, Governor Romney, go out and get ‘em. You can do it,” said Trump.

Mitt Romney

And Romney, in turn, had his own swooning-girl moment: “I’m so honored to have his endorsement….There are some things that you just can’t imagine in your life. This is one of them.”

Clearly, the word “hypocrisy” means nothing to men like Cain, Gingrich, Trump and Romney. But it should mean something to the rest of us.

In samurai Japan, officials who publicly disgraced themselves knew what to do. The samurai code of seppeku told them when they had crossed the line into eternal disgrace.

And it gave them a way to redeem their lost honor: With a small “belly-cutting” knife and the help of trusted assistant who sliced off their head to spare them the agonizing pain of disembowelment.

In the armies of America and Europe, the method was slightly different: A pistol in a private room.

Considering the ready availability of firearms among right-wing Republicans, redeeming lost honor shouldn’t be a problem for any of these men.

But of course it will be. It takes more than a trigger-pull to “do the right thing.” It takes insight to recognize that you’ve “done the wrong thing.” And it takes courage to act on that insight.

In men who live only for their own egos and wallets, such insight and courage will be forever missing. They are beyond redemption. Their lives give proof to the warning offered in Matthew 7: 17-20:

“Even so every good tree bringeth forth good fruit; but a corrupt tree bringeth forth evil fruit. A good tree cannot bring forth evil fruit, neither can a corrupt tree bring forth good fruit.

“Every tree that bringeth not forth good fruit is hewn down, and cast into the fire. Wherefore by their fruits ye shall know them.”

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SPHERES OF INFLUENCE: OURS AND THEIRS

In History, Military, Politics on March 25, 2014 at 1:04 am