Candidates Proposals Makes the Tax Man Happy

The big question remains in the end of these summaries, Kasich’s is not included, yet will the tax code really ever receive an overhaul? Not likely given the $20 trillion in debt which does not include any part of the unfunded mandates.
Stipulation, these summaries are not GAO graded or confirmed if candidates have changed any parts.

AEI: Donald Trump’s tax plan would cut federal revenue by $9.5 trillion over a decade and boost the after-tax incomes of the wealthiest households by an average of more than $1.3 million a year, according to an analysis released Tuesday. Mr. Trump’s plan, which would cut tax rates and push millions of households off the income tax rolls, would reduce federal revenue by 22%, requiring either significant new borrowing or unprecedented spending cuts. … “The revenue losses from this plan are really enormous,” said Leonard Burman, director of the nonpartisan Urban-Brookings Tax Policy Center, which released the study. A bipartisan panel reviewed the report before its release. Mr. Trump’s website says his plan would be revenue-neutral. The center’s analysis shows otherwise.

Actually the red ink is worse than the WSJ piece would suggest. From the study itself:

The revenue loss during the second decade (2027–36) would be more than half again the first decade’s loss (in nominal terms)—a projected $15.0 trillion. The revenue losses understate the total effect on the national debt because they do not include the additional interest that would accrue as a result. Including interest costs, the proposal would add $11.2 trillion to the national debt by 2026 and $34.1 trillion by 2036. Assuming the tax cuts are not offset by spending cuts, the national debt would rise by an estimated 39 percent of GDP in 2026 and by nearly 80 percent of GDP by 2036.

And don’t expect economic growth to bail out the plan. Recall that the Tax Foundation analysis of the Trump plan found it losing $12 trillion on a static basis, $10 trillion when accounting for economic feedback — still a huuuge number.
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The Hillary Bernie tax base showdown

Soak-the-rich proposals ignore history and wouldn’t raise nearly enough money to fund big spending plans.

ManhattanInstitute: Here is a question to ask Hillary Clinton and Bernie Sanders: What is the best tax rate to impose on high-income earners to ensure there is enough government revenue to pay for your trillion-dollar promises to voters?

Perhaps they think it is 83%, a rate that economists Thomas Piketty and Emmanuel Saezhypothesized in 2014 in a widely circulated paper. Or maybe it is 90%, which Sen. Sanders told CNBC last May was not out of the question. “Our job is not to think small,” Mr. Sanders elaborated in the Huffington Post a month later. “It is to think big.”

Progressives have often reminded us that the U.S. had such rates in the past. From 1936 to 1980, the highest federal income-tax rate was never below 70%, and the top rate exceeded 90% from 1951 to 1963. Under Ronald Reagan, the top federal rate declined to 28% by 1988 and has never reached 40% since.

The discussion of these rates can easily create the impression that the federal government collected far more money from “the rich” before the Reagan administration. And it can also leave another impression: There would be no downside to raising rates to 1950s levels, given that decade’s prosperity.

Neither impression would be correct. The effective tax rates actually paid by the highest income earners during the 1950s and early ’60s were far lower than the highest marginal rates. Few taxpayers reached the top brackets, the code was rife with loopholes, and capital gains were taxed at much lower rates.

In the 1960s, for example, the average rate paid by the top 0.1% of tax filers—the top 10th of the top 1%—ranged from 26.5% to 29.5%, according to a 2007 study by Messrs. Piketty and Saez. Even during the 20 years after the Reagan tax cuts, the top 10th of the top 1% paid an average rate of 23.7% to 33%—essentially the same as in the 1960s. In the decade following 2001, the Congressional Budget Office estimates that the average rate for this elite group never exceeded 32%.

Nostalgia aside for a world that never existed, few people paid the top tax rates of the 1950s and early 1960s…

Read the entire piece here at The Wall Street Journal

Then there is the Cruz plan.

WSJ: The Cruz plan would replace payroll and corporate income taxes with a 10% individual income tax and a 16% business tax that would become the chief U.S. revenue source. Like his GOP rivals, Mr. Cruz offers sizable tax cuts and a shift toward taxing consumption instead of income. But he goes further. By eliminating long-standing taxes, Mr. Cruz’s plan could change consumer prices and relationships between workers and employers now shaped by those levies.

Forecasting how this shift would ripple through the economy depends on assumptions about who pays those taxes now and who would bear the burden of the new tax.

“It’s one of the most complicated questions in economics,” said Martin Sullivan, chief economist at Tax Analysts, publisher of Tax Notes. “Every time you start talking about these incidences, it’s like a whack-a-mole thing. You talk about one thing and it comes out the other side.”

Mr. Cruz’s biggest change is, in some ways, a simple reshuffling of existing taxes.

The U.S. now taxes corporate profits at 35%. Companies deduct wages immediately but spread capital expenses over time. The cost is absorbed by shareholders and workers.

The 12.4% Social Security payroll tax is split evenly between workers and employers up to $118,500 in wages. A separate Medicare tax has no cap. Economists consider employees to bear the whole payroll-tax burden.

What Mr. Cruz calls a business flat tax—and economists call a subtraction-method value-added tax—simply combines corporate and payroll taxes. Businesses would deduct capital purchases immediately and pay a 16% rate without deducting wages. Removing the current cap effectively enlarges the payroll tax for high-income workers. More here.

More Hillary Collusion Surfaces

This is the time we need the NSA to produce some meta data on cell phones and honestly the actual conversations.

Panama Papers Scandal Hits the Clinton Campaign

Hillary Clinton’s campaign chairman, John Podesta, has ties to Russia’s Sberbank, which has been implicated in the “Panama Papers” tax-avoidance scandal.

A report parsing through what is currently known to be included in the Mossack Fonseca data leak about Russian corporations found that Podesta’s eponymous Podesta Group lobbying firm took on Sberbank as a client only a month ago. John Podesta’s brother Anthony, who bundles campaign donations for Clinton, is listed as the lobbyist for the Sberbank account.

According to the Washington Free Beacon reportthe Podesta Group’s lobbying registration form lists three other entities affiliated with Sberbank: “Cayman Islands-based Troika Dialog Group Limited, Cyprus-based SBGB Cyprus Limited, and Luxembourg-based SB International.”

Both Sberbank and the Troika Dialog Group are linked with companies used by members of Russian president Vladimir Putin’s inner circle to shift government funds into personal offshore accounts, according to allegations leveled by the International Consortium of Investigative Journalists (ICIJ), the group managing the Panama Papers story – for example, leaked documents from Panamanian law firm Mossack Fonseca that showed Troika Dialog secretly signing away interest in a Russian truck manufacturer to an offshore company called Avto Holdings, owned by close Putin friend Sergei Roldugin.

This, and many similar transactions, are characterized by the Panama Papers journalists as examples of how “offshore companies affiliated with Putin’s friend had privileged rights to control large stakes in strategic Russian enterprises, to receive dividends, and to buy these stakes for laughable sums.” A must read of the rest here from Breitbart.

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Hold on there is more……

Clinton Foundation Donor Ensnared in Kickbacks Probe

FreeBeacon: A major Clinton Foundation donor company that has been granted millions in U.S. federal loans has been linked to a corruption probe in Pakistan, according to reports.

The Abraaj Group, a Middle Eastern investment fund that contributed between $500,000 and $1 million to the Clinton Foundation, has not been charged in the case, but its name has surfaced in Pakistani media reports. Authorities in Sindh province have accused a prominent government official of providing illegal favors to K-Electric, a power company owned and managed by the Abraaj Group since 2009.

Former Pakistani oil minister Dr. Asim Hussain was arrested last year amid allegations that he helped harbor terrorists in a string of hospitals he owned and doled out illegal contracts to companies, including K-Electric. Both Hussain and K-Electric have denied the allegations.

The investigation has not impacted the U.S. government’s ongoing partnership with the Abraaj Group, which dates back to at least 2012. That year, the Overseas Private Investment Corporation—a federal agency that dispenses corporate loans under the guidance of the U.S. State Department—selected the Abraaj Group to manage its $150 million Middle East investment fund.

Two weeks later, the Abraaj Group co-sponsored the Clinton Global Initiative’s annual meeting.

Last October, the Overseas Private Investment Corporation again pledged up to $250 million to help fund the Abraaj Group’s K-Electric operations. The announcement came less than a month after the Sindh Rangers, a Pakistani law enforcement agency, reportedly issued a 12-page report accusing Hussain of passing illegal favors to K-Electric.

According to the Sindh Rangers, Hussain was “involved in various acts of corruption, corrupt practices and misuse of authority as public office holder.” The paramilitary group claimed he also embezzled money that was “subsequently used in terror financing and funding target killers.”

The Rangers’ report claimed that “Dr Asim [Hussain] gave favours and illegal gas connections to KESC [K-Electric], which was owned by Abraaj Group with links to [former Pakistani president] Asif Zardari and [Zardari’s sister] Faryal Talpur to the tune of Rs100 billion,” according to a summary by the International News.

A spokesperson for the Overseas Private Investment Corporation told the Washington Free Beacon that its board approved the project with the Abraaj Group and K-Electric before news of the investigation emerged.

“We are aware of the situation and are following up with the borrower,” OPIC press secretary Sandra Niedzwiecki said.

A spokesperson for the Abraaj Group referred the Free Beacon to an Oct. 2, 2015 statement on the K-Electric website, which strongly denied the charges.

“K-Electric has categorically refuted and denied the false and defamatory allegations that have been referenced in a few publications regarding undue favors taken by the company and/or the provision of illegal gas connections and supply,” the statement said. “K-Electric is a publicly listed company and operates in strict compliance with national laws and regulations and adheres to the highest standards of ethics and corporate governance.”

A spokesperson for the Abraaj Group said K-Electric “has not been contacted by any government or judicial agencies on this matter.”

Dr. Asim Hussain has pleaded not guilty to separate charges of aiding terrorists and corruption.

Hussain appeared in Karachi’s Accountability Court on Thursday, where he was expected to be indicted, according to reports. However, jail authorities brought him to the courthouse over an hour late, and the hearing was rescheduled for a later date.

Last month, Pakistan’s anti-corruption agency, the National Accountability Bureau, filed a corruption reference against Hussain. “In this case, the accused persons were alleged to have illegally fraudulently and with the connivance of officials of OGDCL [Oil and Gas Development Company, Limited] and SSGCL [Sui Southern Gas Company, Limited] awarded gas contracts,” the bureau’s executive board wrote in a March 2 statement.

K-Electric is not the only part of the Abraaj Group entangled in a corruption case. The CEO of PetroTiger, a Colombian petroleum company in the Abraaj Group’s portfolio, pleaded guilty to bribing a foreign official last June. He was sentenced to probation. PetroTiger reportedly cooperated in the case and the company was not charged.

 

 

 

Susan Rice, the Quasi CiC, Imposed a Gag Order

In a recent interview by Bret Baier of three previous Secretaries of Defense a significant response by all three was that the White House does not listen to the military commanders at the Pentagon but rather interferes directly with selected field commanders for political military decisions bypassing the Pentagon completely.

We are seeing for sure this is an accurate description and Susan Rice has been given the responsibility of being the quasi commander in chief. She even went so far as to impose a gag order when it came to the matter of China.

4-star admiral wants to confront China. White House says not so fast

NavyTimes: The U.S. military’s top commander in the Pacific is arguing behind closed doors for a more confrontational approach to counter and reverse China’s strategic gains in the South China Sea, appeals that have met resistance from the White House at nearly every turn.

Adm. Harry Harris is proposing a muscular U.S. response to China’s island-building that may include launching aircraft and conducting military operations within 12 miles of these man-made islands, as part of an effort to stop what he has called the “Great Wall of Sand” before it extends within 140 miles from the Philippines’ capital, sources say.

Harris and his U.S. Pacific Command have been waging a persistent campaign in public and in private over the past several months to raise the profile of China’s land grab, accusing China outright in February of militarizing the South China Sea.

But the Obama administration, with just nine months left in office, is looking to work with China on a host of other issues from nuclear non-proliferation to an ambitious trade agenda, experts say, and would prefer not to rock the South China Sea boat, even going so far as to muzzle Harris and other military leaders in the run-up to a security summit.

“They want to get out of office with a minimum of fuss and a maximum of cooperation with China,” said Jerry Hendrix, a retired Navy captain and defense strategy analyst with the Center for a New American Security.

The White House has sought to tamp down on rhetoric from Harris and other military leaders, who are warning that China is consolidating its gains to solidify sovereignty claims to most of the South China Sea.

National Security Adviser Susan Rice imposed a gag order on military leaders over the disputed South China Sea in the weeks running up to the last week’s high-level nuclear summit, according to two defense officials who asked for anonymity to discuss policy deliberations. China’s president, Xi Jinping, attended the summit, held in Washington, and met privately with President Obama.

The order was part of the notes from a March 18 National Security Council meeting and included a request from Rice to avoid public comments on China’s recent actions in the South China Sea, said a defense official familiar with the meeting readout.

In issuing the gag order, Rice intended to give Presidents Obama and Xi Jinping “maximum political maneuvering space” during their one-on-one meeting during the global Nuclear Summit held March 31 through April 1, the official said.

“Sometimes it’s OK to talk about the facts and point out what China is doing, and other times it’s not,” the official familiar with the memo said.  “Meanwhile, the Chinese have been absolutely consistent in their messaging.”

The NSC dictum has had a “chilling effect” within the Pentagon that discouraged leaders from talking publicly about the South China Sea at all, even beyond the presidential summit, according to a second defense official familiar with operational planning. Push-back from the NSC has become normal in cases where it thinks leaders have crossed the line into baiting the Chinese into hard-line positions, sources said.

Military leaders interpreted this as an order to stay silent on China’s assertive moves to control most of the South China Sea, said both defense officials, prompting concern that the paltry U.S. response may embolden the Chinese and worry U.S. allies in the region, like Japan and the Philippines, who feel bullied.

China, which has been constructing islands and airstrips atop reefs and rocky outcroppings in the Spratly Islands, sees the South China Sea as Chinese territory. President Xi told Obama during their meeting at the nuclear summit that China would not accept any behavior in the disguise of freedom of navigation that violates its sovereignty, according to a Reuters report. The two world leaders did agree to work together on nuclear and cyber security issues.

Experts say administrations often direct military leaders to tone down their rhetoric ahead of major talks, but the current directive comes at a difficult juncture. U.S. leaders are struggling to find an effective approach to stopping the island-building without triggering a confrontation.

The NSC frequently takes top-down control to send a coherent message, said Bryan Clark a former senior aide to Adm. Jon Greenert, the recently retired chief of naval operations. While serving as Greenert’s aide, Clark said the NSC regularly vetted the former CNO’s statements on China and the South China Sea.

Critics say the administration’s wait-and-see approach to the South China Sea has failed, with the island-dredging continuing in full force.

“The White House’s aversion to risk has resulted in an indecisive policy that has failed to deter China’s pursuit of maritime hegemony while confusing and alarming our regional allies and partners,” said Sen. John McCain, R-Ariz., chairman of the Senate Armed Services Committee, in a statement to Navy Times. “China’s increasingly coercive challenge to the rules-based international order must be met with a determined response that demonstrates America’s resolve and reassures the region of our commitment.”

When presented with the findings of this article, Harris declined to comment through a spokesperson. A spokesman for the chief of naval operations had no comment when asked about Harris’ proposals and whether the CNO was supporting them.

An administration official said the Navy’s operations in the South China Sea are routine and that the administration often seeks to coordinate its message.

“While we’re not going to characterize the results of deliberative meetings, it’s no secret that we coordinate messaging across the inter-agency-on issues related to China as well as every other priority under the sun,” the official said.

The gag order has had at least one intended effect. The amphibious assault ship Boxer and the dock landing ship Harpers Ferry, both carrying the 13th Marine Expeditionary Unit, steamed through the South China Sea in late March to little fanfare.

‘The status quo has changed’

Meanwhile evidence is mounting that China aims to build another island atop the Scarborough Shoal, an atoll just 140 miles off the coast of the Philippines’ capital of Manila and well within the Philippines’ 200-mile economic exclusion zone, that would extend China’s claims. Chinese missile batteries and air-search radars there would put U.S. forces in the Philippines at risk in a crisis.

Harris and PACOM officials have been lobbying the National Security Council, Capitol Hill and Pentagon leaders to send a clear message that they won’t tolerate continued bullying of neighbors. Part of the approach includes more aggressive, frequent and close patrols of China’s artificial islands, Navy Times has learned.

“When it comes to the South China Sea, I think the largest military concern for [U.S.] Pacific Command is what operational situation will be left to the next commander or the commander after that,” said a Senate staffer familiar with the issues in the South China Sea. “The status quo is clearly being changed. Militarization at Scarborough Shoal would give [China’s People’s Liberation Army-Navy] the ability to hold Subic Bay, Manila Bay, and the Luzon Strait at risk with coastal defense cruise missiles or track aviation assets moving in or out of the northern Philippines.”

The administration is negotiating rotational force presence in the Philippines that would put the U.S. in a position to counter China’s moves in the region but the focus on the big picture isn’t changing the China’s gains in the here and now, the staffer said.

“Force posture agreements and presence operations are important, but the administration has yet to develop a deterrence package that actually convinced Beijing that going further on some of these strategic-level issues like Scarborough … is not worth the costs.”

Stepped-up patrols and of the South China Sea like the one conducted by the carrier John C. Stennis and her escorts in early March are part of the PACOM response to China, but actual freedom of navigation patrols in close proximity to China’s islands must be authorized by the White House.

The patrols to date have been confusing, critics argue, because they have been conducted under the right of innocent passage. For example, the destroyer Lassen’s October transit within 12 nautical miles of Chinese man-made islands in the disputed Spratly Islands chain, was conducted in accordance with innocent passage rights. Some officials saw that as tacit acknowledgment that China did in fact own the islands and were entitled to a 12-mile territorial sea around them.

During innocent passage, warships are not supposed to fly aircraft, light off anti-air systems or shoot guns — just proceed expeditiously from point “A” to point “B.” All those activities are fair game in international waters.

The lack of a more aggressive response has only encouraged continued expansion, critics say, including the new Scarborough Shoal project, which China seized from the Philippines in 2012.

The Lassen was the first U.S. warship to pass within 12 miles of China’s man-made islands in three years and was followed by the destroyer Curtis Wilbur’s patrol of the disputed Paracel Islands in January. But if the goal of those patrols was to stop China from constructing man-made islands, it has clearly failed, which was noted last month by the U.S. military’s top officer.

“In the South China Sea, Chinese activity is destabilizing and could pose a threat to commercial trade routes,” Marine Gen. Joe Dunford, the chairman of the Joint Chiefs, said at a March 29 speech at the Center for Strategic and International Studies. “And while our exercise of freedom of navigation provides some assurance to our allies and partners, it hasn’t stopped the Chinese from developing military capabilities in the South China Sea, to include on territories where there is a contested claim of sovereignty.”

Administration officials say they’ve been tough on China’s claims, supporting military patrols by U.S. Air Force bombers and Navy ships, as well as sending high-tech military assets to the region, including two more destroyers and the sophisticated X-band AN/TPY-2 missile defense radar system. The U.S. is also negotiating rotational presence for U.S. troops on bases in the Philippines, right on China’s doorstep.

“The idea that we are somehow inconsistent or that we are giving China a free pass just isn’t supported by the facts,” said a U.S. official who spoke on background to discuss internal deliberations.

‘Irreversible’ gains

Harris wants to double down on the close island patrols but conduct them on the assertion they are in international water, sources who spoke to Navy Times said.

Clark, now an analyst with the Center for Strategic and Budgetary Assessments who has followed Harris’s strategy, said he thinks Harris is lobbying for more assertive freedom of navigation patrols that include military operations such as helicopter flights and signals intelligence within 12 miles of Chinese-claimed features. Such patrols, Clark said, would make clear the Navy does not acknowledge Chinese claims and that the surrounding waters are international.

“He wants to do real [freedom of navigation operations],” Clark said. “He wants to drive through an area and do military operations.”

Harris is not the only Navy expert raising alarms. Capt. Sean Liedman, a naval flight officer serving as a fellow at the Council on Foreign Relations, called for the U.S. to take a hard line.

“Failing to prevent the destruction and Chinese occupation of Scarborough Shoal would generate further irreversible environmental damage in the South China Sea — and more importantly, further irreversible damage to the principles of international law,” Liedman wrote in a late March blog post. “It would further consolidate the Chinese annexation and occupation of the maritime features in the South China Sea, which would be essentially irreversible in any scenario short of a major regional conflict.”

Liedman said the Navy should consider taking military actions like disabling Chinese dredging boats to steps to impair the land-reclamation effort.

Failing to stop China’s expansion in the South China Sea into territory also claimed by its neighbors is only heightening the chance of getting into an armed confrontation, said Hendrix, the retired captain.

“The Obama administration has tended to take the least confrontational path but in doing so they created an environment where it’s going to take a major shock to reestablish the international norms in the South China Sea,” he said. “Ironically, they’ve made a situation where conflict is more instead of less likely.”

 

Facebook’s Selective Censorship? Closed Groups….

Primer: Facebook owns WhatsApp.

Even more curious the New York Times did the study and provided the results to Facebook…Zuckerberg, what say you?

Facebook Groups Act as Weapons Bazaars for Militias

NYT: A terrorist hoping to buy an antiaircraft weapon in recent years needed to look no further than Facebook, which has been hosting sprawling online arms bazaars, offering weapons ranging from handguns and grenades to heavy machine guns and guided missiles.

The Facebook posts suggest evidence of large-scale efforts to sell military weapons coveted by terrorists and militants. The weapons include many distributed by the United States to security forces and their proxies in the Middle East. These online bazaars, which violate Facebook’s recent ban on the private sales of weapons, have been appearing in regions where the Islamic State has its strongest presence.

This week, after The New York Times provided Facebook with seven examples of suspicious groups, the company shut down six of them.

The findings were based on a study by the private consultancy Armament Research Services about arms trafficking on social media in Libya, along with reporting by The Times on similar trafficking in Syria, Iraq and Yemen.

A seller based in Tripoli, Libya, offered components of a man-portable antiaircraft defense system, or Manpads, in a closed Facebook group. Credit Armament Research Services

1. The Weapons Have Included Heavy Machine Guns and Heat-Seeking Missiles

Many sales are arranged after Facebook users post photographs in closed and secret groups; the posts act roughly like digital classified ads on weapons-specific boards. Among the weapons displayed have been heavy machine guns on mounts that are designed for antiaircraft roles and that can be bolted to pickup trucks, and more sophisticated and menacing systems, including guided anti-tank missiles and an early generation of shoulder-fired heat-seeking antiaircraft missiles.

Last year ARES said it had documented an offer on Facebook to sell an SA-7 gripstock (pictured above), the reusable centerpiece of a man-portable antiaircraft defense system, or Manpads, a weapon of the Stinger class. Many of these left Libyan state custody in 2011, as depots were raided by rebels and looters. ARES said it documented Libyan sellers claiming to have two complete SA-7s for sale, two additional missiles and three gripstocks. An old system, SA-7s are a greater threat to helicopters and commercial aircraft than to modern military jets.

Machine guns, rifles and a shotgun advertised on Facebook groups in Libya.

2. Others Are the Standard Arms of Militant and Terrorist Groups

Machine guns and missiles form a small fraction of the apparent arms trafficking on Facebook and other social media apps, according to Nic R. Jenzen-Jones, the director of ARES and an author of the report. Examinations by The Times of Facebook groups in Libya dedicated to arms sales showed that sellers sought customers for a much larger assortment of handguns and infantry weapons. The rifles have predominantly been Kalashnikov assault rifles, which are used by many militants in the region, and many FN FAL rifles, which are common in Libya.

All of these solicitations violate Facebook’s policies, which since January has forbidden the facilitation of private sales of firearms and other weapons, according to Monika Bickert, a former federal prosecutor who is responsible for developing and enforcing the company’s content standards.

Images from Facebook groups selling weapons in Iraq.

3. Weapons Sales Greased by Social Media Sites Have Become a Feature of Many Conflicts

The use of social media for arms sales is relatively new to Libya. Until a Western-backed uprising against Col. Muammar el-Qaddafi in 2011, which ended in his death at the hands of an armed mob, the country had a tightly restricted arms market and limited Internet access. But social media-based weapons markets in Libya are not unique. Similar markets exist in other countries plagued in recent years by conflict, militant groups and terrorism, including arms-sales Facebook groups in Iraq, Syria and Yemen.

On Monday, The Times shared links for seven such groups with Facebook to check whether they violated the rules. By Tuesday, Facebook had taken down six of the groups. Ms. Bickert said that one Facebook group — which displayed photographs of weapons but only discussed them and expressly forbade sales — had survived the company’s scrutiny.

Photo

Online weapons markets in Iraq and Libya.

4. Facebook’s Rules on Arms Sales Are Related to Changes in How Facebook Is Used.

Ms. Bickert described the company’s policies as evolutionary, reflecting shifts in its social media ecosystem.

“When Facebook began, there was no way to really engage in commerce on Facebook,” she said. But in the past year, she noted, the company has allowed users to process payments through its Messenger service, and has added other features to aid sales. “Since we were offering features like that, we thought we wanted to make clear that this is not a site that wants to facilitate the private sales of firearms.”

Photo

A Facebook user in Syria shared an image of Islamic State fighters.

5. Facebook Relies on Users to Report the Arms Trafficking It Bans

Ms. Bickert said the most important part of Facebook’s effort “to keep people safe” was to make it easy for users to notify the company of suspected violations, which can be done with a click on the “Report” feature on every Facebook post.

In this way so-called Community Operations teams — Facebook employees who review the reports in dozens of languages — can examine and remove offending content. How effective the policy is, in practice, is unclear. Several groups from which the photographs for this article were downloaded operated on Facebook for two years or more, accumulating thousands of members before Facebook announced its ban on arms sales.

This trafficking occurred in countries where the Islamic State is at its most active and where armed militias or other designated terrorist groups, including Al Qaeda, have a persistent presence. In all four countries, government forces do not control large areas of territory and civil society is under intense pressure. Christine Chen, a Facebook spokeswoman, said the company relied on the nearly 1.6 billion people who visit the site every month to flag offenders. “We urge everyone who sees violations to report them to us,” she said.

Pistols have been widely sold and sought on Facebook in Libya.

6. In Libya, Widespread Pistol Sales on Facebook

ARES has documented many types of buyers and sellers. These include private citizens seeking handguns as well as representatives of armed groups buying weapons that require crews to be operated effectively, or appearing to offload weapons that the militias no longer wanted. Different markets have different characteristics. In Libya, fear of crime seemed to drive many people to buy pistols, Mr. Jenzen-Jones said. “Handguns are disproportionately represented,” he said. “They are widely sought after — primarily for self-defense and particularly to protect against carjackings — with many prospective buyers placing ‘wanted’ posts.” They were also expensive, ranging from about $2,200 to more than $7,000 — a sign that demand outstrips supply.

Military weapons originating in the United States have been sold through Facebook groups in Iraq.

7. Weapons Provided to Allies in Iraq Have Filled Facebook Sales Pages

In Iraq, the Facebook arms bazaars can resemble inside looks at the failures of American train-and-equip programs, with sellers displaying a seemingly bottomless assortment of weapons provided to Iraq’s government forces by the Pentagon during the long American occupation. Those include M4 carbines, M16 rifles, M249 squad automatic weapons, MP5 submachine guns and Glock semiautomatic pistols. Many of the weapons shown still bear inventory stickers and aftermarket add-ons favored by American forces and troops.

Such weapons have long been available on black markets in Iraq, with or without advertising on social media. But Facebook and other social media companies seem to provide new opportunities for sellers and buyers to find one other easily; for sellers to display items to more customers; and for customers to peruse and haggle over a larger assortment of weapons than what is available in smaller, physical markets.

A TOW launcher, a wire-guided anti-tank missile system, was advertised on a Facebook group in Syria with this message: “There is a TOW launcher, brand new, whoever wants it should contact us via private messages or WhatsApp.”

8. In Syria, Weapons Identical to Those Distributed to Rebels by the United States Are Offered for Sale

Similarly, weapons identical to those provided by the United States to Syrian rebels have also been traded on Facebook and other social media or messaging apps. In one recent example, a seller in northern Syria — who identified himself as a student, photographer and sniper — offered a pristine-looking Kalashnikov assault rifle that he said came from the Hazm Movement, which received weapons from the United States before the movement was defeated by the Nusra Front, a Qaeda affiliate. He noted on Facebook that the rifle was new and had “never fired a shot,” and hinted of either a bonus gift or a discount.

 

North Korea Threat Real or Sorta Real?

Analysts remain sceptical of North Korea’s nuclear strike claims

Janes: Photos released by North Korean official news outlet Rodong Sinmun on 9 March showed the country’s leader, Kim Jong-un, meeting the country’s nuclear technicians at what could be a KN-08 (Hwasong-13) intercontinental ballistic missile production facility near Jonchon in the country’s northern Chaggang province.

The accompanying article said Kim was congratulating his nuclear weapon scientists for having developed a miniaturised nuclear warhead: a claim being met with scepticism by various Western analysts.

The photos and article came two days after Pyongyang threatened its South Korean neighbours with a pre-emptive nuclear strike for the 7 March initiation of joint exercises ‘Foal Eagle’ and ‘Key Resolve’: the largest set of manoeuvres ever conducted with US forces in the region, in which around 17,000 US troops are exercising alongside some 300,000 South Korean military personnel.

In the week prior to the beginning of the exercises, Pyongyang’s KCNA state news agency quoted Kim as saying that North Korea’s “nuclear warheads need to be ready for use at any time”.

Various security policy think-tanks have accused Washington and its South Korean allies of raising tensions on the Korean peninsula, calling the exercises ill-advised. Stephan Haggard from the School of Global Policy and Strategy at University of California, San Diego, who authors a blog on North Korea, told news sites like CNN, “I didn’t see the logic of expanding the exercises. I personally think that upping the sizes of the exercises didn’t serve any material function. It’s not clear that the size will bring North Korea back to the diplomatic table, so there’s no real purpose to do that. All you’ve done is stir the viper’s nest.”

Specialists on North Korea’s defence capabilities and internal politics dismiss these criticisms of the US-South Korean manoeuvres, arguing that such condemnation ignores the realities of the immediate objectives of North Korea’s nuclear programme and the nature of the regime’s internal political intrigue.

(CNN)The North Korea monitoring project 38 North says that satellite imagery shows “suspicious activity” at a nuclear enrichment site in North Korea.

Plumes of exhaust steam, a byproduct of heating the main plant at the Yongbyon Radiochemical Laboratory complex, have been seen in commercial satellite images taken March 12 and over the preceding five weeks, the group says.
This activity is unusual, the report by the Washington-based project says.
“Exhaust plumes have rarely been seen there and none have been observed on any examined imagery this past winter,” the report says.

Weeks away?

The plumes of steam do not necessarily indicate that the process for refining plutonium for nuclear weapons is underway or will be soon, the report says.

It does, however, note that U.S. Director of National Intelligence James Clapper recently testified that Pyongyang had “announced its intention to ‘refurbish and restart’ its nuclear facilities,” including the uranium enrichment facility at Yongbyon, and that it could be able to recover plutonium from the reactor’s spent fuel “within a matter of weeks to months.”
Separate images appear to show further work on the site’s Experimental Light Water Reactor, a key facility for the enrichment of nuclear fuel, is ongoing, with a new transformer yard and road built, and the installation of electrical cables completed. More here.