Taxpayer $’s Paid for the Clinton Server(s) and Bed Bug Problems

This is going to be a long item but stick with it and you will learn some disgusting facts.

Primer:

The Former Presidents Act (FPA; 3 U.S.C. §102 note) was enacted to “maintain the dignity” of the Office of the President. The act provides the former President—and his or her spouse—certain benefits to help him respond to post-presidency mail and speaking requests, among other informal public duties often required of a former President. Prior to enactment of the FPA in 1958, former Presidents leaving office received no pension or other federal assistance. The FPA charges the General Services Administration (GSA) with providing former U.S. Presidents a pension, support staff, office support, travel funds, and mailing privileges.

Pursuant to statute, former Presidents currently receive a pension that is equal to pay for Cabinet Secretaries (Executive Level I), which for calendar year 2015 was $203,700. Executive Level I pay was increased to $205,700 for calendar year 2016. In addition to benefits provided pursuant to the FPA, former Presidents are also provided Secret Service protection and financial “transition” benefits to assist their transition to post-presidential life. Pursuant to the FPA, former Presidents are eligible for benefits unless they hold “an appointive or elective office or position in or under the Federal Government or the government of the District of Columbia to which is attached a rate of pay other than a nominal rate.”

The President’s FY2017 budget request seeks $3,865,000 in appropriations for expenditures for former Presidents, an increase of $588,000 (17.9%) from the FY2016 appropriation level. The increase in requested appropriations for FY2017 anticipates President Barack Obama’s transition from incumbent to former President. For FY2016, President Obama requested and received appropriations of $3,277,000 for expenditures for former Presidents—an increase of $25,000 from FY2015 appropriated levels.

By the way, former Vice Presidents have the same privilege.

***** Now for the real disgusting Clinton thing….

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Great investigative reporting by Politico: Bill Clinton used a decades-old federal government program, originally created to keep former presidents out of the poorhouse, to subsidize his family’s foundation and an associated business, and to support his wife’s private email server, a POLITICO investigation has found.

Taxpayer cash was used to buy IT equipment — including servers — housed at the Clinton Foundation, and also to supplement the pay and benefits of several aides now at the center of the email and cash-for-access scandals dogging Hillary Clinton’s presidential campaign.

This investigation, which is based on records obtained from the General Services Administration through the Freedom of Information Act, does not reveal anything illegal. But it does offer fresh evidence of how the Clintons blurred the line between their non-profit foundation, Hillary Clinton’s State Department and the business dealings of Bill Clinton and the couple’s aides.

The thousands of pages of newly uncovered records reveal sometimes granular detail about how Bill Clinton’s representatives directed the spending of taxpayer cash allocated by the GSA under the Former President’s Act.

The Act authorizes the GSA to fund the pensions, correspondence, support staff and travel of ex-presidents. It was passed in 1958 to “maintain the dignity” of the presidency by helping former commanders in chief avoid hard times like those that befell Harry S. Truman. He complained that, without help from Uncle Sam, he would be forced to “go ahead with some contracts to keep ahead of the hounds.”

The Clintons did not have this problem.

After leaving the White House “dead broke”, in the words of Hillary Clinton, they quicklyraked in tens of millions of dollars from book deals, speaking fees and consulting gigs. At the same time, Bill Clinton was relying on his connections to some of the world’s deepest-pocketed donors, corporations and governments to seed a global philanthropy operation that overlapped with his consulting work and speaking fees and his wife’s work as Secretary of State — and served as a jumping off point for her presidential campaign.

But even as the Clintons got rich and grew their foundation into a $2 billion organization credited with major victories in the fights against childhood obesity and AIDS — while paying six figure salaries to top aides — Bill Clinton continued drawing more cash from the Former President’s Act than any other ex-president, according to a POLITICO analysis. The analysis also found that Clintons’ representatives, between 2001, when the Clintons left the White House, and the end of this year, had requested allocations under the Act totaling $16 million. That’s more than any of the other living former presidents — Jimmy Carter, George H. W. Bush and George W. Bush — requested during that span.

The program supplemented the income of Clinton’s staff, while providing them with coveted federal government benefits, alleviating the need for the Clinton Foundation or other Clinton-linked entities to foot the bill for such benefits. Similarly, Clinton aides got the GSA to pay for computer technology used partly by the foundation.

An analysis of the records provided by GSA, combined with Clinton Foundation tax returns, found that at least 13 of the 22 staffers who have been paid by GSA to work for Clinton’s personal office also worked for the Clinton Foundation.

A Clinton aide said his boss’s use of the GSA program is entirely consistent with the Former Presidents Act.

Generally, the aide explained that Clinton “wears several hats — among them being former President of the United States and the founder of the Clinton Foundation. His staffing reflects those roles.”

The aide added “there is no legal prohibition that would preclude the former president’s staff from receiving compensation from other sources or doing personal work for the former presidents. We are unaware of any legal prohibition that would preclude these activities.”

The aide wouldn’t discuss specific employees, or their sources of income, explaining “the Office of Former President Bill Clinton does not discuss personnel matters.”

But using the GSA records, POLITICO pieced together a list of Clinton loyalists who at various times have had their earnings supplemented by federal payments of about $10,000-a-year using funds from the Former Presidents Act.

The list reads like a field guide to Clinton World.

It includes longtime Bill Clinton aide Justin Cooper, who despite not having a security clearance, any apparent training in cyber-security or a job at the State Department, in early 2009 helped set up the private email account that Hillary Clinton would use to send and receive classified information as Secretary of State. Her use of that system was dubbed “extremely careless” by the FBI director. Cooper continued working to maintain Clinton’s private email system — including advising her top aides Huma Abedin and Cheryl Mills on attempted hacks — through at least 2012, according to emails released by the State Department.

During some of that period, Cooper was on the GSA payroll, drawing a federal government stipend from February 2011 through 2013, according to the records obtained by POLITICO.

At the same time, though, Cooper was working with Doug Band, a trusted Bill Clinton lieutenant, and Declan Kelly, a top Hillary Clinton fundraiser-turned-State Department official, to launch a global consulting firm called Teneo. It did lucrative work for foundation donors and entities with business before Clinton’s State Department. And it signed a contract reportedly worth $3.5 million with Bill Clinton to serve as a “honorary chairman” (though the former president ultimately kept only $100,000 of that, according to his tax returns and a source familiar with the arrangement). Teneo also paid Abedin as a “senior advisor.”

All the while, Band and Abedin were working together to broker meetings between Secretary of State Clinton and donors to the foundation, where Band served as an official until 2012, drawing a salary that in some years exceeded $111,000-a-year.

Yet, despite the profitable consulting business and his foundation compensation, Band continued drawing a taxpayer-funded stipend from the GSA until 2013.

Also receiving a salary from both the GSA and the Clinton Foundation was Laura Graham, who remained in extremely close contact with Clinton’s top aide at the State Department, swapping emails about sensitive foreign policy issues. During most of her time on the GSA payroll, Graham was earning a six-figure salary from the Clinton Foundation, which topped out at $190,000 per year in 2014.

Cooper, Band and Graham are no longer on the GSA payroll, nor are they working for the foundation. They all either declined to comment or did not respond to questions about the overlap between their taxpayer-funded work, the foundation and the State Department.

According to several people familiar with the former president’s operation, the rationale behind the interwoven payrolls is that they allow for a small team to assist Clinton in a variety of settings without having to do logistically complicated hockey-like line changes. In a given day, Clinton might deliver a paid private speech (during which time his employees’ salaries could be paid by the executive services corporation) and a public speech in his capacity as a former president (during which his staff could be paid by the GSA funds). And he could attend events for the foundation (where staff time would be paid by the foundation) as well as his wife’s presidential campaign (staff time would be paid by the campaign).

The records provided by GSA show that for each pay period, Clinton’s office submitted a list of personnel to GSA who were eligible to receive pay or reimbursement for travel done on behalf of the former president, along with the number of hours worked by each Clinton aide.

For many years, that list included two influential Clinton confidants who were listed as having worked zero hours each pay period — John Podesta, the former Clinton White House chief of staff who served as the foundation’s temporary CEO in 2011, and Bruce Lindsey, the Clintons’ Arkansas confidant who served as the foundation’s CEO from 2004 through mid-2013.

A spokesman for Hillary Clinton’s presidential campaign said Podesta, who is the campaign’s chairman, was on the list because, in 2001, he was paid less than $500 for helping “transition President Clinton from the White House to a DC-based personal office to the Harlem office. Beyond that, he received no compensation for his work.”

It’s unclear if Lindsey ever received GSA payments for work or travel on behalf of the former president. Neither he nor Podesta responded to requests for comment.

A GSA spokesperson declined to comment on specific employees, but said ex-presidents have broad discretion over how they choose to divvy up the $96,600 they are provided each year for staffing. They can give the entire sum to a single employee or divide it among multiple employees.

George H. W. Bush has four people on his taxpayer-funded staff, while Bill Clinton has 10, which has been roughly his staffing level for most of his post-presidency, according to the GSA documents. That means that each earned about $9,600 a year — far from a living wage in Manhattan, where both the Clinton Foundation and Clinton’s personal office are located.

But most Clinton aides on the GSA payroll also earned far more from other groups in the Clinton orbit — from the foundation to Teneo to an entity funded by the Clintons’ personal funds called the Clinton Executive Services Corporation or CESC.

The aide to Bill Clinton said that the former president “personally pays the costs over and above what is provided for by GSA,” adding that Clinton’s contribution “far exceeds the $96,000 provided by GSA.”

The key reason for adding staffers to the GSA payroll, according to two people familiar with the Clintons’ staffing arrangements, was that each employee became eligible for full federal employee benefits, including health and life insurance and pensions. The two people familiar with Bill Clinton’s staffing said the employees on his GSA payroll almost never received benefits from either the Clinton Foundation or the CESC.

Neither the CESC nor the Clinton Foundation are obligated to release their full payrolls, and GSA wouldn’t release the names of the staff being paid through the Former President’s Act.

So POLITICO in March 2015 filed a request under the Freedom of Information Act for GSA records detailing payments made through the Act to the offices of all former presidents between 1999 and the present. Nearly 18 months later, the agency partially fulfilled the request, this week delivering thousands of pages of emails, invoices and payroll documents covering 2009 through this year.

Correspondence related to Clinton’s payroll and requested purchases of computer equipment and other office gear through GSA under the Act comprise the overwhelming majority of the records provided in response to POLITICO’s FOIA request.

That could be a quirk of the FOIA search process.

But Clinton’s reimbursement requests also seem to generate far more back-and-forth with GSA about the justification for the spending (for instance, a GSA official asked in response to a request for a bed bug removal service, “is there currently a bed bug issue … or is the request for some type of on-going maintenance services.” The answer is not included in the documents). And Clinton’s requested purchases also prompted more debate about what’s allowable under the Act.

Part of that likely stems from Clinton’s approach to his ex-presidency, which is far more active and public than that of his former commander-in-chief peers — and that’s even before factoring in his wife’s history-making political career. But the GSA records also reveal just how tricky it can be to separate the various entities, players and controversies that have circulated for decades around Bill and Hillary Clinton.

In several cases, GSA officials raised questions about whether requested furniture and IT equipment including servers were intended for the Clinton Foundation, rather than Clinton’s personal office. In at least one instance, GSA paid to purchase and maintain a specialty Lockheed Martin database system called Intranet Quorom, the supporting systems for which were housed at one time at the Clinton Foundation’s offices, and used by both foundation staff and Bill Clinton’s personal office staff to store and process his correspondence.

The Clinton aide said servers supporting the Intranet Quorom system — which is used for data storage, not email — were the only pieces of equipment purchased by GSA that were housed at the Clinton Foundation at one point, but he said it was justified by the specific circumstances around it.

“As staff needs to have the full picture of all correspondence sent by President Clinton, both staff from the Office of the Former President and the Foundation have access to, and can input into, the Intranet Quorum database,” the aide said.

The Clinton Foundation’s website suggests that there’s a strict wall between the foundation and the ex-president’s personal office. “All Foundation employees are paid for work through the Foundation payroll,” the website says. “No Foundation staff are paid for Foundation work with taxpayer dollars.”

But the aide acknowledged “staff at the Foundation and staff at the Office of the Former President may have similar tasks, and need to coordinate this work — specifically staff that handles President Clinton’s correspondence.”

That shared work is facilitated by the Lockheed Martin IQ database system, the aide said.

But the system’s dual purpose raised questions among GSA officials, who pressed Clinton’s representatives when they submitted an invoice in September 2011 to the GSA to purchase a $7,700 Dell server and other IT equipment to support the Lockheed Martin IQ database.

Clinton Foundation officials explained to the GSA that they wanted the Dell server housed at foundation headquarters rather than at Clinton’s personal office. They explained in an email that the foundation office had better air conditioning, allowing it to support “about 10-15 more servers,” and also it was where IT staff were based, so “trouble shooting with the servers can be done ASAP.”

The GSA staff asked Graham, then serving as the foundation’s COO, to demonstrate that “safeguards are in place to ensure that the servers are solely for use by” Clinton’s personal office. A note affixed to the bottom of an email produced pursuant to POLITICO’s FOIA indicates that the GSA ultimately decided not to purchase the Dell server.

Asked about the reasoning this week, a GSA spokesman suggested that Clinton’s representatives failed to provide sufficient evidence that the Dell server was not for use by the foundation.

“Consistent with the support we provide to every former President, GSA does not approve purchases for entities other than the offices of former Presidents,” the spokesman said. “In this case, GSA staff sought clarification about the intended use of proposed purchases. Ultimately, the referenced server was not purchased.”

But, perhaps highlighting the confusion caused by the overlapping spheres in the Clinton’s universe, the Clinton aide offered a different recollection. “We believe that the information GSA provided you with is incomplete. Our files show that GSA purchased the Dell server that operates the IQ database in 2010.”

Rachael Bade, Cory Bennett and Eric Geller contributed to this report.

 

 

 

 

 

 

 

Document: How Trump Forces Mexico to Pay for the Wall

Mexico Payment Plan for the Wall

Memo explains how Donald Trump plans to pay for border wall

In a two-page memo to The Washington Post, Trump outlined for the first time how he would seek to force Mexico to pay for his 1,000-mile border fence, which Trump has made a cornerstone of his presidential campaign and which has been repeatedly scoffed at by current and former Mexican leaders. Read about Trump’s plan

Mexico Payment Plan for the Wall  <— Full text here.

 

Sen. Chuck Schumer August Porker of the Month

Today, Citizens Against Government Waste (CAGW) named Senator Chuck Schumer (D-N.Y.) its August Porker of the Month for his leading role in the effort to create supposedly “debt free” college for all students, which would exacerbate rather than resolve the student loan crisis.

As coeds across the nation return to school, the debate over their increasing loan debt has intensified.  According to the Federal Reserve Bank of New York, student loan debt hit an all-time high of $1.26 trillion in Q2 2016, which is a $69 billion increase from the previous year.  Upon graduating with a bachelor’s degree, the average student owes more than $37,000, more than double the amount they owed in the early 1990s.  More than 43 million Americans are liable for these loans.

The cause of this dramatic increase in student loan debt is simple:  Increased federal government subsidies.  Over the past decade, there has been a 69 percent increase in students borrowing from federal loan programs.  The federal government now provides about 71 percent of all student aid.  The consequential increase in student access to credit enables colleges and universities to continue to hike prices, which necessitates more loan borrowing.  Tuition costs have increased 153 percent over the last three decades for private colleges and 231 percent for public universities, faster than prices for both food and healthcare.

Senator Schumer completely fails to comprehend the root cause of the student loan bubble.  He proposed S. 2677, the In the Red Act, earlier this year that would ensure “debt free college for every student in the country.”  Putting aside the steep price tag on his supposedly “free” plan, Senator Schumer offered a puzzling assessment of the student loan bubble on February 12, 2016:  “A Ford and a college education used to be the same price, but these days an education at NYU costs $60,000 a year, compared to $20,000 for a Ford today.”

Senator Schumer’s silly comparison between the open and highly competitive auto market and the closed and heavily subsidized higher education sector lays bare his flawed knowledge of how government intervention hurts students.  His plan would continue the vicious cycle of increased subsidies and higher loans that have already saddled America’s next generation with mountainous debt.

For his utter lack of understanding of the student loan bubble and his efforts to inflate it, CAGW names Sen. Chuck Schumer its August Porker of the Month.

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.  Porker of the Month is a dubious honor given to lawmakers, government officials, and political candidates who have shown a blatant disregard for the interests of taxpayers.

Meanwhile, how about that debt?

CBO Increases Projected Deficit Estimate

On August 5, 2016, the Congressional Budget Office (CBO) released its “Monthly Budget Review for July 2016.”  The CBO increased its projection of fiscal year 2016 deficit by 10 percent, from $534 billion to $590 billion, in its review.  The non-partisan agency attributes the deficit increase to lower-than-expected revenues.  In addition to lower revenues, costs have also risen.

In the review, CBO found that spending rose for Social Security benefits, net interest on the public debt, Medicare, Medicaid, and the Department of Veterans Affairs.  The CBO found that spending on Social Security benefits rose by $24 billion (three percent), but pointed out that this reflects “typical growth in the number of beneficiaries and in the average payment.”  Net interest on the public debt increased by $23 billion (11 percent) due to inflation differences.  Medicare and Medicaid spending both climbed four percent ($18 billion and $11 billion, respectively) due to changes to prescription drug plans in Medicare and new enrollees in Medicaid through the Affordable Care Act.  Similar to Medicaid, spending increased to the Department of Veterans Affairs due to the increase of veterans receiving disability payments.  Spending by the Department of Veterans Affairs increased by five percent, or $7 billion.

The CBO asserts that the deficit increase is due to lower than expected revenues, i.e., taxes.  Rather than finding more revenues, Congress should reduce spending, considering that any additional revenues come out of the pockets of the hard-working taxpayers that actually fund the federal government.

Hat tip to: Citizens Against Government Waste. Tired of the Government wasting your Tax Dollars? Take Action Here! (800) BE-ANGRY

State Dept: Country Reports on Terrorism 2015

Cuba, Mexico, Venezuela, all in our hemisphere get major passes from the State Department.

Related reading: The 50 most violent cities in the world

Related reading: The world’s most dangerous and safest countries revealed  Interactive map for rankings is found here.

 

Country Reports on Terrorism 2015 is submitted in compliance with Title 22 of the United States Code, Section 2656f (the “Act”), which requires the Department of State to provide to Congress a full and complete annual report on terrorism for those countries and groups meeting the criteria of the Act.

Beginning with the report for 2004, it replaced the previously published Patterns of Global Terrorism.

 

Chapters

Chapter 1. Strategic Assessment
Chapter 2. Country Reports: Africa Overview
Chapter 2. Country Reports: East Asia and Pacific Overview
Chapter 2. Country Reports: Europe Overview
Chapter 2. Country Reports: Middle East and North Africa Overview
Chapter 2. Country Reports: South and Central Asia Overview
Chapter 2. Country Reports: Western Hemisphere Overview
Chapter 3: State Sponsors of Terrorism Overview
Chapter 4: The Global Challenge of Chemical, Biological, Radiological, or Nuclear (CBRN) Terrorism
Chapter 5: Terrorist Safe Havens (Update to 7120 Report)
Chapter 6. Foreign Terrorist Organizations
Chapter 7. Legislative Requirements and Key Terms

Annexes

National Consortium for the Study of Terrorism and Responses to Terrorism: Annex of Statistical Information [Get Acrobat Reader PDF version   ]
Terrorism Deaths, Injuries and Kidnappings of Private U.S. Citizens Overseas in 2015

Full Report

Country Reports on Terrorism 2015 (PDF)

Related reading: SUMMARY: Wilayat Sinai, an organization identified with the Islamic State, has recently suffered a series of serious blows from the Egyptian army. 

Court Reverses Jury Decision on PLO Attack, 11 Americans Died

Circuit Reverses $655M Award Against PLO for Terror Attacks

Hamblett/NewYorkLawJournal: A $655 million award against the Palestine Liberation Organization and the Palestinian Authority for attacks that killed or wounded members of 11 American families in Israel has been thrown out by the U.S. Court of Appeals for the Second Circuit.

The circuit held this morning that there was no personal jurisdiction over the action, where a jury found after a seven-week trial in 2015 that the PLO and the Authority, acting through their employees, perpetrated the attacks or provided material support for those who did.

The decision was a big setback for lawyers who have been working for years to win damages for families under the Anti-Terrorism Act, 18 U.S.C. §2333(a). The jury before Judge George Daniels in the Southern District of New York awarded the plaintiffs $218.5 million, an amount automatically tripled to $655.5 million under the Act.

Judges Pierre Leval and Christopher Droney and Southern District Judge John Koeltl, sitting by designation, said Daniels erred in finding personal jurisdiction in Sokolow v. Palestinian Liberation Organization, 15-3135.

The decision rejected the arguments of Arnold & Porter partner Kent Yalowitz, who told the circuit in April that jurisdiction should lie and justice be done for the “11 American families whose loved ones were murdered and maimed by the defendants” because the goal of the PLO and the Authority was to influence the foreign policy of the United States through coercion and intimidation—a key part of the Anti-Terrorism Act.

Yalowitz said the evidence was clear that the defendants were involved in the attacks, either through their own employees or through assistance to their allies within Hamas and the al-Aqsa Martyrs Brigade (NYLJ, April 13).

But Mitchell Berger, a partner at Squire Patton Boggs, got the better of the argument, telling the judges that case law was clear that “you have to find the brunt of the injury” in the United States to sue in an American courtroom.

The case was bought by 36 plaintiffs and four estates seeking compensation for death and injuries that occurred in a series of attacks, including the July 31, 2002, Hebrew University bombing carried out by Hamas that killed nine people, four of them U.S. citizens.

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During the second Intifada, numerous American citizens were murdered by terrorist attacks.

In 2004, the families of several deceased victims sued the Palestine Liberation Organization (PLO) and the Palestinian Authority (PA) in the Southern District of New York under the Antiterrorism Act. The families claim the PLO and PA organizations financed and orchestrated the following seven attacks:

(1) The January 8, 2001 shooting attack on Varda Guetta and her son Oz;

(2) The January 22, 2002 shooting attack on Shayna Gould and Shmuel Waldman;

(3)The January 27, 2002 suicide bombing attack on the Sokolow family;

(4) The March 21, 2002 suicide bombing attack on Alan Bauer and his son Yehonatan;

(5) The June 19, 2002 suicide bombing attack on Shaul Mandelkorn;

(6) The July 31, 2002 Hebrew University Cafeteria bombing which killed David Gritz, Benjamin Blustein, Diane Carter and Janis Coulter;

(7) The January 29, 2004 suicide bombing attack on a bus which killed Yechezkel Goldberg.

The plaintiffs seek up to $3 billion in damages from attacks between January 2001 and February 2004 by the PLO. In September 2008, U.S. District Judge George Daniels rejected the PLO’s argument that the attacks were acts of war rather than terrorism. Trial began in January 2015 and on February 23, the jury returned a guilty verdict on all counts. The defense has been found liable for $218.5 million, an amount set to be tripled to $655.5 million.

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Case documents for Sokolow et al. v. PLO et al.