U.S. Schools Courtesy of Gulen

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Anyone remember the Barack Obama famous Cairo speech? In April of 2009, Barack delivered a long message siding with Islam and opening the door for radicals to launch their agendas and local schools in America were included.

But setting the table for what is below is this: He is in the United States.

Turkey issues arrest warrant for cleric Gulen – state media

(Frank J.Gaffney Jr. The Wash.Times:11 Dec.2012)

It is a commonplace saying, but one that most of us ignore: If something sounds too good to be true, it probably is. This applies in spades to a proposal under active consideration by the school board in Virginia’s Loudoun County. It would use taxpayer funds to create a charter school to equip the children of that Washington exurb with enhanced skills in science, technology, engineering and mathematics disciplines. Ostensibly, they will thus be equipped to compete successfully in the fields expected to be at the cutting edge of tomorrow’s workplace.

What makes this initiative, dubbed the Loudoun Math and IT Academy, too good to be true? Let’s start with what is acknowledged about the proposed school.

The academy’s board is made up of a group of male Turkish expatriates. One of them, Fatih Kandil, was formerly the principal of the Chesapeake Science Point Public Charter School in Anne Arundel County, Md. Another is Ali Bicak, the board president of the Chesapeake Lighthouse Foundation, which owns Chesapeake Science Point and two other charter schools in Maryland. The Loudoun Math and IT Academy applicants expressly claim that Chesapeake Science Point will be the model for their school.

The taxpayers of Loudoun County and the school board elected to represent them should want no part of a school that seeks to emulate Chesapeake Science Point, let alone be run by the same people responsible for that publicly funded charter school. For one thing, Chesapeake Science Point has not proved to be the resounding academic success the applicants claim. It does not appear anywhere in the acclaimed U.S. News & World Report lists of high-performing schools in Maryland, let alone nationwide — even in the subsets of mathematics or charter schools.

What is more, according to public documents chronicling Anne Arundel County Public Schools’ dismal experience with Chesapeake Science Point, there is significant evidence of chronic violations of federal, state and local policies and regulations throughout its six years of operations, with little or inconsistent improvement, reflecting deficiencies in fiscal responsibility and organizational viability.

Why, one might ask, would applicants for a new charter school cite so deeply problematic an example as their proposed institution? This brings us to aspects of this proposal that are not acknowledged.

Chesapeake Science Point is just one of five controversial schools with which Mr. Kandil has been associated. He was previously the director at the Horizon Science Academy in Dayton, Ohio; the principal at the Wisconsin Career Academy in Milwaukee and at the Baltimore Information Technology Academy in Maryland; and one of the applicants in a failed bid to establish the First State Math and Science Academy in Delaware.

These schools have something in common besides their ties to the peripatetic Fatih Kandil. They have all been “inspired” by and in other ways are associated with Fethullah Gulen, a Turkish supremacist and imam with a cultlike following of up to 6 million Muslims in Turkey and elsewhere around the world. More to the point, Imam Gulen is the reclusive and highly autocratic leader of a global media, business, “interfaith dialogue” and education empire said to be worth many billions that is run from a compound in the Poconos.

This empire — including its roughly 135 charter schools in this country and another 1,000 abroad — and its adherents have come to be known as the Gulen Movement. Those associated with it, in this country at least, are assiduously secretive about their connections to Imam Gulen and his enterprise. For example, the Loudoun Math and IT Academy applicants, their spokeswoman and other apologists have repeatedly misled the Loudoun school board, claiming that these Turkish gentlemen and their proposed school have nothing to do with Imam Gulen.

There are several possible reasons for such professions. For one, the Gulen schools are reported to be under investigation by the FBI. A growing number of them — including Chesapeake Science Point — have also come under critical scrutiny from school boards and staff around the country. In some cases, they have actually lost their charters for, among other reasons, chronic financial and other mismanagement and outsourcing U.S. teachers’ jobs to Turks.

The decisive reason for the Gulenist lack of transparency, however, may be due to their movement’s goals and modus operandi. These appear aligned with those of another secretive international organization that also adheres to the Islamic doctrine known as Shariah and seeks to impose it worldwide — the Muslim Brotherhood. Both seek to accomplish this objective by stealth in what the Brotherhood calls “civilization jihad” and Imam Gulen’s movement describes as “jihad of the word.”

This practice enabled the Gulenists to help transform Turkey from a reliable, secular Muslim NATO ally to an Islamist state deeply hostile to the United States — one aligned with other Islamic supremacists, from Iran to the Muslim Brotherhood to Hamas to al Qaeda. Fethullah Gulen’s followers clearly don’t want us aware of the obvious dangers posed by their penetration of our educational system and influence over our kids.

The good news is that members of the Loudoun County school board have a code of conduct that reads in part: “I have a moral and civic obligation to the nation which can remain strong and free only so long as public schools in the United States of America are kept free and strong.” If the board members adhere to this duty, they will reject a seductive Loudoun Math and IT Academy proposal that is way too “good” to be true.

So what has happened since the launch of these schools around the country?

FBI raids Concept Schools in Illinois, 2 other states

The FBI and two other federal agencies conducted raids in Illinois and two other states at charter schools run by Des Plaines-based Concept Schools, FBI officials said Tuesday.

Search warrants were executed at 19 Concept schools in connection with an “ongoing white-collar crime matter,” said Vicki Anderson, a special agent in the Cleveland FBI office that’s leading the probe.

The U.S. Department of Education and the Federal Communications Commission also were involved in the June 4 raids, but officials said the warrants remain under seal, and they wouldn’t give any details about the investigation. 

The raids targeted Concept schools in Illinois — where Concept has three schools in Chicago and one in Peoria — as well as in Indiana and Ohio.

FBI RAIDS TURKISH GULEN CHARTER SCHOOL IN LA

Dec 14, 2013 by

fbi_raid“Finally FBI Raids Turkish Gulen Charter School in Louisiana”

by Donna Garner 12.13.13   

12.12.13 — To view the FBI raid of the Gulen charter school in East Baton Rouge, please go to the following link on WBRZ.com. The Gulen charter schools are tied to Fethullah Gulen who is an Islamist imam.  Kenilworth Science and Technology School is connected to the Pelican Foundation, Cosmos Foundation in Texas, Atlas Texas Construction and Trading (a Houston-based contractor), Harmony Charters in Texas, and to other Gulen/Turkish entities around the United States and Turkey:  http://www.wbrz.com/videos/fbi-raid-another-scandal-for-charter-school-company/   

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12.11.13 — To read the full story about the FBI raid on the Gulen charter school, please read further: “FBI Raid Another Scandal for Gulen Charter School Company”

http://www.wbrz.com/news/fbi-raid-another-scandal-for-charter-school-company/   

EXCERPTS FROM THIS ARTICLE:

BATON ROUGE- Wednesday evening’s FBI raid on a charter school in East Baton Rouge is the latest item in a list of scandals involving the organization that holds the charter for the Kenilworth Science and Technology School.

Pelican Educational Foundation runs the school [and also Abramson] and has ties to a family from Turkey. The organization lost its school in New Orleans amid allegations of sexual misconduct among students that prompted a state investigation on campuses in the Crescent City and in Baton Rouge. It has also faced lawsuits and allegations from teachers about bad learning environments.

“It was an atmosphere where there was a double standard,” one former teacher told WBRZ News 2 in an investigation into the school in EBR. Former teachers were not happy with how things were handled when they spoke with a station reporter two years ago.

No one was ever charged in the sex allegations a school spokesperson pointed out Wednesday as federal investigators moved through the campus collecting items, putting them in boxes and then loading them into a van.

…The school receives about $5,000,000 in local, state, and federal tax money. In 2012, the Pelican group was accused of improperly handling money by the Legislative Auditor. A report found about $8600 was improperly used to buy gifts for students who scored high on LEAP tests.

…About the same time as allegations and lawsuits began dealing with Pelican charter schools, a BESE member took an improper trip on behalf of another Turkish organization. Linda Johnson, who is no longer on BESE, was fined for breaking the law by the ethics board. She got an all expenses paid trip to Turkey.

Kenilworth Science and Technology School will be open Thursday.

 

Failure: Secret Service from Treasury to DHS

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Nothing says failure much like a club med attitude that is quite prevailing throughout government and when it comes to the Secret Service the symptoms are glaring.

There are lapses in security, in attendance, in pro-active measures, fraud and prostitutes. Fence jumpers are the most recent sign of lack of leadership and demands by those actually in the White House, when doors are unlocked, alarms are turned off and people and dogs are slow to respond, if at all.

After the Cartagena prostitute scandal, what took so long to find truth and begin to install real cures? Why did it take an outside investigation of the Secret Service to publish the problems?

‘USSS has two primary missions: (1) to safeguard the Nation’s financial infrastructure and payment systems and (2) to protect national leaders, visiting heads of state and government, designated sites, and high-profile events. USSS employs approximately 3,200 special agents, 1,300 uniformed officers, and more than 2,000 technical, professional, and administrative support personnel.’

The solutions? Ah yes, more dogs, more people, more training and a higher fence. No real mention of a culture problem and following existing policy and protocol. Now the question is how long will all these proposals take and at what cost to the taxpayer?

Panel Finds Deep Problems at Secret Service

Outside Experts Suggest Agency Seek Leader From Outside, Build Higher White House Fence

By Andrew Grossman, The Wall Street Journal

 WASHINGTON—The Secret Service needs more training, staff and a leader from outside its ranks to run an organization that has been stretched beyond its limits and become too insular, according to a panel of outside experts appointed to examine the agency.

Much of the report is classified and won’t be released publicly, but the executive summary suggests the panel found deep problems at the top of the Secret Service, which is tasked with protecting the president, his family and other dignitaries, as well as investigating financial crimes.

“The panel found an organization starved for leadership that rewards innovation and excellence and demands accountability,” the executive summary said.

Homeland Security Secretary Jeh Johnson appointed the panel to review presidential security and the Secret Service after a man jumped the White House fence and ran into the mansion in September, leading to the resignation of then-director Julia Pierson.

The Wall Street Journal reviewed an executive summary of its report, which was delivered to Mr. Johnson this week.

 

The panel also recommended one simple step to make the White House more secure: Quickly raise the 7½-foot fence around the compound, which is far too easy to climb. An extra 4 or 5 feet, plus outward curves on top, would make a big difference, the panel wrote in an executive summary of its report.

Mr. Johnson called the recommendations “astute, thorough and fair” and said he’d make sure they’re implemented. Speaking on MSNBC earlier in the day, he said the president and his family are safe.

“Some of the panel’s recommendations are similar to others made in past agency reviews, many which were never implemented,” he said. “This time must be different.”

Among the changes it recommends is to break with a long tradition of having insiders run the Secret Service and appoint an outsider to lead the agency.

Sequestration of the IRS

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Conservatives are angry that the more than $1 trillion CRomnibus legislation recently passed. There are many good reasons for that, however, there are some tactical methods underway as a result of the legislation most of all the Internal Revenue Service.

Since the IRS targeting program broke, certain measures have been taken most of which includes lawsuits to gain access to the no longer missing emails and communications of those colluding against conservative organizations.

Inside the CRomnibus was a deep cut to the IRS budget. Yippee, or not so fast. These conditions may delay income tax returns processing and the same applies to refunds.

The War On The IRS: Congress Cuts Its Funding To Lowest Level Since 1998

House GOP Appropriators bragged that this year’s IRS budget is the lowest since 2008. But it is actually worse than that. In inflation adjusted dollars, the agency’s funding is lower than it has been since 1998, when Buffy was still slaying vampires and people were listening to Aerosmith before it was nostalgic.

For context, in 1998, taxpayers filed about 125 million individual returns. Last year, the agency had to process 145 million.

Technology has made some of that work easier—more than 90 percent of individual returns are now filed electronically, vastly reducing the amount of work for IRS staffers. But technology has also forced the agency to respond to growing numbers of hackers and identity thieves.

And while processing returns may be easier, taxpayers must sort through increasingly complex rules—most as result of laws passed by the same Congress that cuts the IRS budget. The agency ought to be providing more assistance and education to help them but, thanks to those budget reductions, it is providing less.

According to the Government Accountability Office, IRS has cut staff by 9 percent since 2009. Examinations of business returns dropped from 50 percent to one-third. In 2014, callers waited twice as long for an IRS response than they did in 2009, and fewer said they received service. The IRS has cut training costs by more than 80 percent.  The agency estimates its audit rate for partnerships and other pass-through business–where fraud and error are rampant– was 0.5 percent in 2011.

Now the IRS faces the unenviable task of trying to track who has health insurance under the Affordable Care Act, and calculate penalties for those who do not. Worse, it must sort out whether people received the right subsidies, and, if they did not, it must correct them.

Many tax administration experts have long feared the agency will be unable to get this right. And lower funding will make the task even more difficult. That, of course, is exactly what many anti-ACA lawmakers have in mind.

The IRS Commissioner is telegraphing a warning about the IRS. A possible shutdown is forecasted. Then a hiring freeze has been invoked.

“Our hiring — already limited at a ratio of one hire for every five people who leave — will be frozen with only a few mission-critical exceptions,” he wrote in an email to employees. “We will stop overtime except in critical situations.”

But there’s potentially more to come, as IRS leadership decides what else to cut over the next nine months of the fiscal 2015 budget, he warned. Koskinen also said IRS leadership is “consulting with the leadership of the NTEU” — referring to the National Treasury Employees Union, meaning the cuts in some way could affect employees.

Read more: http://www.politico.com/story/2014/12/irs-budget-cuts-113651.html#ixzz3MHlLxtg0 

 

 

CyberWar on America Costs Close to a $Trillion

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It is not just North Korea, the cyber warriors are also in Ukraine, China, Syria, Russian and Iran. America has some defenses, but normal users and the business industry has few robust and intolerant choices against cyber attacks.

We need to challenge Congress to declare cyber attacks as an act of war given the heavy costs to theft, risk and attacks on harden targets including the power grid systems, transportation, food, banks, water, yet most of all intelligence and military secrets.

The most recent attack on Sony intranet system is pointing to North Korea as having the cyber-soldiers and that brigade is called Unit 121.

Defense News: Military planners and security experts have intensified their shouts of concern about the development of cyber weapons and the distinct possibility of a cyber war. Cyber warfare is not new. It has been in modern military doctrine for the past decade not to mention the number of terrorist groups who have threatened the use of cyber weapons against the west. However, what has changed is the number of countries that posess these capabilities today.
The North Korean military created a new unit that focuses solely on cyber warfare. The unit, dubbed Unit 121, was first created in 1998 and has steadily grown in size and capability since then. Interest in establishing cyber war forces shouldn’t come as a surprise to anyone, but North Koreas intense effort stands out among the top ten nations developing cyber weapons.
Unit 121 Capabilities Assessment:
Force Size: Originally 1,000 — Current Estimate:17,000
Budget: Total military budget $6 billion USD. Cyber Budget $70+ million. North Koreas military budget is estimated to be the 25th largest in the world.
Goal: To increase their military standing by advancing their asymmetric and cyber warfare.
Ambition: To dominate their enemys information infrastructure, create social unrest and inflict monetary damage.
Strategy: Integrate their cyber forces into an overall battle strategy as part of a combined arms campaign. Additionally they wish to use cyber weapons as a limited non-war time method to project their power and influence.
Experience: Hacked into the South Korea and caused substantial damage; hacked into the U.S. Defense Department Systems.
Threat Rating: North Korea is ranked 8th on the Spy-Ops cyber capabilities threat matrix developed in August of 2007.
Capabilities
Cyber Intelligence/Espionage: Basic to moderately advanced
weapons with significant ongoing development into cyber intelligence.
Offensive Cyber Weapons: Moderately advanced distributed
denial of service (DDoS) capabilities with moderate virus and malicious code capabilities.
North Korea now has the technical capability to construct and deploy an array of cyber weapons as well as battery-driven EMP (electro magnetic pulse) devices that could disrupt electronics and computers at a limited range.
In the late spring of 2007, North Korea conducted another test of one of the cyber weapons in their current arsenal. In October, the North Koreans tested its first logic bomb. A logic bomb is a computer program that contains a piece of malicious code that is designed to execute or be triggered should certain events occur or at a predetermined point of time. Once triggered, the logic bomb can take the computer down, delete data of trigger a denial of service attack by generating bogus transactions.
For example, a programmer might write some software for his employer that includes a logic bomb to disable the software if his contract is terminated.
The N Korean test led to a UN Security Council resolution banning sales of mainframe computers and laptop PCs to the East Asian nation. The action of the United Nations has had little impact and has not deterred the North Korean military for continuing their cyber weapons development program.
Keeping dangerous cyber weapons out of the hands of terrorists or outlaw regimes is next to impossible. As far back as 2002, White House technology adviser Richard Clarke told a congressional panel that North Korea, Iraq and Iran were training people for internet warfare. Most information security experts believe that it is just a matter of time before the world sees a significant cyber attack targeted at one specific country. Many suggest the danger posed by cyber weapons rank along side of nuclear weapons, but without the physical damage. The signs are there. We need to take action and prepare for the impact of a cyber war.

North Korea’s Elite Hackers Who Live Like Stars In Luxury Hotel 

Unit 121 is known to have two distinct functions: to carry out disruptive attacks against systems primarily in the United States and South Korea, both for purposes of sabotage and intelligence gathering, and to defend North Korea from incoming cyber attacks.

North Korea, however, has very little internet infrastructure, which analysts say actually gives the country an advantage. While North Korea can launch massive attacks against the West — the Sony attack being just the latest — outside nations can do little to damage North Korea’s own internal digital systems because they largely don’t exist.

Inside North Korea, use of the internet is strictly limited to government approved personnel. Ordinary citizens may utilize only an intranet run by Kim Jong Un regime, which allows access to government approved sites and state-operated media, but no access to what the rest of the world knows as the internet and the World Wide Web.

Instead, according to a report prepared in 2009 by a U.S. military intelligence analyst, Steve Sin, the Unit 121 hackers operate mostly from the luxurious Chilbosan in Shenyang, China, pictured below, a facility with amenities that would be unknown to all but the top level government elites inside North Korea, an impoverished country racked by famine.

The hotel is located in a military-controlled region of China just three hours from the border with North Korea. The central headquarters of Unit 121 is located in Pyongyang, in a district called Moonshin-dong, near the Taedong River

In fact, by North Korean standards, the cyber hackers of Unit 121 (also referred to as “Bureau 121″) are treated like superstars, afforded high-class lifestyles inconceivable to the vast majority of North Korean citizens.

In addition to Sin’s report, the Hewlett-Packard corporation conducted its own investigation into the threat posed by Unit 121 — which was created in 1998 and operates with a budget of more than $6 billion. Much of the information known about the highly-secretive unit comes from those reports, and from North Korean defectors who have passed information to U.S. and South Korean intelligence.

According to those accounts, the hackers who comprise the unit are the cream of North Korea’s academic crop in math and computer science, hand-picked from high schools around the country, who are then sent to study at Keumseong, the top high school in the North Korea capital of Pyongyang.

From there, the candidates who pass a rigorous series of tests and trials are sent to study at top universities — and then sent to Russia and China for an additional year of specialized training in computer hacking and cyberwar techniques.

Unit 121 is believed responsible for an attack on 30,000 computers inside South Korean banks and media companies in 2013, an attack that security experts say bore strong similarities to the Sony hack.

Against South Korea, North Korea allegedly has already carried out a series of disruptive and destructive operations in the past few years. Discounting previous distributed denial-of-service (DDoS) attacks on websites, the first major cyber-attack attributed to North Korea was on April 12, 2011, which paralyzed online banking and credit card services of Nonghyup Agricultural Bank for its 30 million customers. This is the first instance where North Korea used a disc wiping tool. While its ATMs were fixed within a couple days, some of the online services had taken more than two weeks to return to normal operating status, with 273 out of 587 servers destroyed. The second incident occurred in March 20, 2013, which used similar but improved tactics from April 2011. It was timed to simultaneously target multiple banks and broadcasting agencies with disc wiping tools and was preceded by an extensive advanced persistent threat campaign. The scale of the March 20 attack demonstrated that North Korea has at least one dedicated, permanent cyber unit directed against carefully selected targets and that they have the means to penetrate, exploit, and disrupt target systems and networks with sufficient secrecy.

Congress Blind-Sided on Cuba Shift is False

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First the White House said no to Cuba and the prisoner swap.  Alan Gross was a top asset sent to Cuba to investigate and impede the Cuba/Russian spy network designed to infiltrate United States Southern Command. There was some great success is the Cuban spies providing intelligence back to the island and then far beyond.

The White House going back to 2009 has announced a series of policy changes regarding Cuba. These objectives were in cadence with the State Department, the U.S. Treasury and the Commerce Secretary as well as the U.S. Chamber of Commerce. Several congressional committees were well aware of the epic shift of appeasement to the Communist country. Congress was hardly blind-sided including a prisoner swap as this has been a tactic of the White House.

It seems to grow the economy and to increase trade, the White House policy wonks think it is a prudent move to open diplomacy with a communist country after-all it works with China.

U.S. Policy
Congress has played an active role in shaping policy toward Cuba, including the enactment of legislation strengthening and at times easing various U.S. economic sanctions. While U.S. policy has consisted largely of isolating Cuba through economic sanctions, a second policy component has consisted of support measures for the Cuban people, including U.S. government-sponsored broadcasting (Radio and TV Martí) and support for human rights and democracy projects. The Obama Administration has continued this similar dual-track approach. While the Administration has lifted all restrictions on family travel and remittances, eased restrictions on other types of purposeful travel, and moved to reengage Cuba on several bilateral issues, it has also maintained most U.S. economic sanctions in place. On human rights, the Administration welcomed the release of many political prisoners in 2010 and 2011, but it has also criticized Cuba’s continued harsh repression of political dissidents through thousands of short-term detentions and targeted violence. The Administration has continued to call for the release of U.S. government subcontractor Alan Gross, detained in 2009 and sentenced to 15 years in prison in 2011, and maintains that Gross’s detention remains an impediment to more constructive relations.
Legislative Activity
Strong interest in Cuba is continuing in the 113th Congress with attention focused on economic and political developments, especially the human rights situation, and U.S. policy toward the island nation, including sanctions. The continued imprisonment of Alan Gross remains a key concern for many Members. In March 2013, Congress completed action on full-year FY2013 appropriations with the approval of H.R. 933 (P.L. 113-6), and in January 2014, it completed action on an FY2014 omnibus appropriations measure, H.R. 3547 (P.L. 113-76)—both of these measures continued funding for Cuba democracy and human rights projects and Cuba broadcasting (Radio and TV Martí). Both the House and Senate versions of the FY2014 Financial Services and General Government appropriations measure, H.R. 2786 and S. 1371, had provisions that would have tightened and eased travel restrictions respectively, but none of these provisions were included in the FY2014 omnibus appropriations measure (P.L. 113-76).
For FY2015, the Administration is requesting $20 million for Cuba democracy projects (the same being provided for FY2014) and $23.130 million for Cuba broadcasting.


Congressional Research Service
Cuba: U.S. Policy and Issues for the 113th Congress FY2014)

The House Appropriation Committee reported out H.R. 5013 (H.Rept. 113-499), the FY2015 State Department, Foreign Operations, and Related Programs Act, on June 27, 2014, which would make available $20 million “to promote democracy and strengthen civil society in Cuba,” and provide not less than $28.266 million for Cuba broadcasting. The Senate Appropriations Committee reported out its version of the appropriations measure, S. 2499 (S.Rept. 113-195), on June 19, 2014, which would provide up to $10 million for Cuba democracy programs and an additional $5 million for programs to provide technical and other assistance to support the development of private businesses in Cuba; the Senate measure would also provide $23.130 million for Cuba broadcasting.
With regard to U.S. sanctions on Cuba, the House version of the FY2015 Financial Services and General Government Appropriation bill, H.R. 5016 (H.Rept. 113-508), approved July 16, 2014, has a provision that would prohibit the use of any funds in the Act “to approve, license, facilitate, authorize or otherwise allow” people-to-people travel.
Several other initiatives on Cuba have been introduced in the 113th Congress. Several would lift or ease U.S. economic sanctions on Cuba: H.R. 214 and H.R. 872 (overall embargo); H.R. 871 (travel); and H.R. 873 (travel and agricultural exports). H.R. 215 would allow Cubans to play organized professional baseball in the United States. H.R. 1917 would lift the embargo and extend nondiscriminatory trade treatment to the products of Cuba after Cuba releases Alan Gross from prison. Identical initiatives, H.R. 778/S. 647 would modify a 1998 trademark sanction; in contrast, H.R. 214, H.R. 872, H.R. 873, and H.R. 1917 each have a provision that would repeal the sanction. H.Res. 121 would honor the work of Cuban blogger Yoani Sánchez. H.Res. 262 would call for the immediate extradition or rendering of all U.S. fugitives from justices in Cuba.

So this begs the question, who really benefits on the Cuban side, when the benefits to America are in the zero category?

From Fox Business: There is a price that the Cuban regime will exact from American companies to do business there if U.S.-Cuba relations are fully normalized, a price that likely won’t benefit the country’s lower classes, but will instead line the pockets of Castro & Co., experts on Cuba warn.

Because of its tight grip, the Castro regime has kept Cuba’s GDP hamstrung. It’s economy is now at a tiny $72.3 billion, less than half that of the state of Iowa, notes Richard J. Peterson, senior director at S&P Capital IQ. In fact, the average worker earns less than $25 a month.

Cuba is in crisis, it needs a bailout. Its crony communism has failed, it is steeped in debt, and its money is running low. Historically, Cuba has enjoyed lifelines in the form of money and oil from Venezuela, which had been generously supplying 100,000 free barrels of oil a day, estimates show, nearly two-thirds of Cuba’s consumption needs.

But Venezuela is on the brink of financial collapse as oil continues to plunge toward $60 a barrel, according to sources there, and it cannot supply Cuba the oil it needs. Plus Venezuela is now enduring three health epidemics: Malaria, dengue fever and chikungunya. Russia has also subsidized Cuba’s economy, but it, too, faces a severe economic contraction as oil nosedives.

Cuba needs tourism dollars, it needs trade and bank credits to save itself from bankruptcy. But it wants all that even while it keeps its failed government model in place. But it wants all that even while it keeps its failed government model in place. Cuba is run by a Soviet-style nomenklatura filled with party elites who call the shots behind the scenes, and who have gotten spectacularly wealthy in the process, all while abusing its people and business partners. Critics of the government, perceived enemies of the state, even those calling for basic human rights continue to be arbitrarily imprisoned without charge or due process, many beaten, even killed.

The Cuban power elite are the Castro brothers and their families, their party chieftains and army leaders. The Cuban economy has changed little since the collapse of the Soviet Union. Unchecked by a probing, independent media or Congress, the Cuban power elite enjoy rich salaries, vacations overseas, yachts, Internet access, beach compounds and satellite dishes to see U.S. movies, notes Cuban émigré and lawyer Nelson Carbonell, author of “And the Russians Stayed: The Sovietization of Cuba” (William Morrow & Co., 1989). The communists in Cuba routinely expropriate the assets of foreign investors, and have seized and control everything of value, including hotels, car distributors, banks, the sugar industry, resorts.

Just as Friedrich Engel, co-author of the Communist Manifesto, once said holds true of Cuba today, that “once in the saddle,” a new ruling class “has never failed to consolidate its rule at the expense of the working class and to transform social leadership into exploitation.”

If relations are fully normalized, American tourist dollars would pour into companies owned by the Castro regime, since tourism is controlled by both the military and General Raul Castro, warns the Cuba Transition Project (CTP).

That means rum, tobacco, hotels and resorts are all owned and operated by the regime and its security forces. Cuba’s dominant company is the Grupo Gaesa, founded by Raul Castro in the nineties and controlled and operated by the Cuban military, which oversees all investments. Cuba’s Gaviota, run by the Cuban military, operates Cuba’s tourism trade, its hotels, resorts, car rentals, nightclubs, retail stores and restaurants. Gaesa is run by Raul’s son-in-law, Colonel Luis Alberto Rodriguez Lopez-Callejas.

The number of foreign companies doing business in Cuba have been cut by more than half since the 1990s, to 190 from some 400. Reasons include: Being forced to partner with army-controlled groups; hire workers through state agencies; and the freezing of bank deposits. Complaints have poured in from former senior executives at Dow Chemical, General Mills, Bristol-Myers Squibb, Colgate-Palmolive, Bacardi, American Express Bank, PepsiCo, Warner Communications, Martin Marietta Aluminum and Amex Nickel Corporation. Iberia, Spain’s national airline which at one time accounted for 10% of foreign commerce with Cuba, killed its Havana routes because they were unprofitable.

If U.S.-Cuba relations are normalized, fresh, new American dollars will only enrich the elite, “dollars will trickle down to the Cuban poor in only small quantities, while state and foreign enterprises will benefit most,” warns CTP, adding U.S. travelers to Cuba could still be “subject to harassment and imprisonment.” Over the decades, tourists visiting Cuba from Canada, Europe and Latin America and spending money there have only strengthened Cuba’s totalitarian state, it notes. There is a chance the free-flow of information from free trade could spark change long-term, but that could trigger an immediate, violent crackdown from the Cuban government, much like what occurred during the Arab spring.

Another significant factor: Corruption is rampant in Cuba, it has no independent, transparent, legal system, Cuba appoints its judges and licenses lawyers, and it repeatedly arrests peaceful pro-democracy activists.

Plus it is a debtor nation with a long history of defaulting on its loans. U.S. businesses risk having their operations confiscated by the government, and/or never seeing their loans repaid.

Cuba exports nickel, but that is largely controlled by Canadian interests, and its sugar industry is on the ropes. About 600 European suppliers have had over $1 billion arbitrarily frozen by the government since 2009, “and several investments have been confiscated,” CTP says.

In fact, Cuban law lets the government confiscate foreign assets for “public utility” or “social interest,” CTP says. Three CEOs of companies doing hundreds of millions of dollars’ worth of business in Cuba were arrested and stuck in jail without charges or due process: Cy Tokmakjian of the Tokmakjian Group, Sarkis Yacoubian of Tri-Star Caribbean, from Canada, and Amado Fakhre of Coral Capital of Great Britain.

All of this is why Cuba is ranked 176th out of 177 countries on the index of economic freedom put out by the Heritage Foundation, beating North Korea at dead last, but ranking worse than Iran and Zimbabwe.