Category Archives: DOJ, DC and inside the Beltway

Putin, Oligarchs, Wealth and More

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While there is so much going on globally, in recent weeks very little has been said about Russia, Putin and his aggressions.

Creating global wealth undercover to the masses does not go without recognition to many of the worldwide elite class and Russian collusion is no exception. You may very well know the names and locations. The list is fascinating.

 

The Russian Foreign Ministry has taken a jab at its U.S. counterpart by uploading a picture of U.S. Secretary of State John Kerry and his predecessors “digging out trenches of the Cold War.”

The loaded comment was made alongside a picture of the politicians holding spades at a construction site, taken last Thursday at a ceremony for a future museum at the U.S. Diplomacy Center in Washington.

“Let’s hope that this is not the mobilization of veterans on digging out trenches of the Cold War,” the Russian Foreign Ministry said Monday on its Facebook account.

Also pictured in the photograph are former state secretaries Hillary Clinton, Colin Powell, Henry Kissinger, James Baker and Madeleine Albright.

Then comes Ukraine and why it has been rather easy for Putin’s aggressions going unchallenged by the West.

SPECIAL REPORT-Putin’s allies channelled billions to Ukraine oligarch

By Stephen Grey, Tom Bergin, Sevgil Musaieva and Roman Anin

MOSCOW/KIEV Nov 26 (Reuters) – In Russia, powerful friends helped him make a fortune. In the United States, officials want him extradited and put behind bars. In Austria, where he is currently free on bail of $155 million, authorities have yet to decide what to do with him.

He is Dmitry Firtash, a former fireman and soldier. In little more than a decade, the Ukrainian went from obscurity to wealth and renown, largely by buying gas from Russia and selling it in his home country. His success was built on remarkable sweetheart deals brokered by associates of Russian leader Vladimir Putin, at immense cost to Russian taxpayers, a Reuters investigation shows.

Russian government records reviewed for this article reveal for the first time the terms of recent deals between Firtash and Russia’s Gazprom, a giant gas company majority owned by the state.

According to Russian customs documents detailing the trades, Gazprom sold more than 20 billion cubic metres of gas well below market prices to Firtash over the past four years – about four times more than the Russian government has publicly acknowledged. The price Firtash paid was so low, Reuters calculates, that companies he controlled made more than $3 billion on the arrangement.

Over the same time period, other documents show, bankers close to Putin granted Firtash credit lines of up to $11 billion. That credit helped Firtash, who backed pro-Russian Viktor Yanukovich’s successful 2010 bid to become Ukraine’s president, to buy a dominant position in the country’s chemical and fertiliser industry and expand his influence.

The Firtash story is more than one man’s grab for riches. It demonstrates how Putin uses Russian state assets to create streams of cash for political allies, and how he exported this model to Ukraine in an attempt to dominate his neighbour, which he sees as vital to Russia’s strategic interests. With the help of Firtash, Yanukovich won power and went on to rule Ukraine for four years. The relationship had great geopolitical value for Putin: Yanukovich ended up steering the nation of more than 44 million away from the West’s orbit and towards Moscow’s until he was overthrown in February.

“Firtash has always been an intermediary,” said Viktor Chumak, chairman of the anti-corruption committee in the previous Ukrainian parliament. “He is a political person representing Russia’s interests in Ukraine.”

A spokesman for Putin rejected claims that Firtash acted on behalf of Russia. “Firtash is an independent businessman and he pursues his own interests, I don’t believe he represents anyone else’s interests,” said Dmitry Peskov.

The findings are the latest in a Reuters examination of how elites favoured by the Kremlin profit from the state in the Putin era. In the wild years after the fall of the Soviet Union, state assets were seized or bought cheaply by the well connected. Today, resources and cash flows from public enterprises are diverted to private individuals with links to Putin, whether in Russia or abroad.

Putin’s system of comrade capitalism has had huge costs for the ordinary people of Russia: By granting special cheap deals to Firtash, Gazprom missed out on about $2 billion in revenue it could have made by selling that gas at market prices, according to European gas price data collected by Reuters. Four industry analysts said that Gazprom could have sold the gas at substantially higher prices to other customers in Europe.

At the same time, the citizens of both Russia and Ukraine have seen unelected oligarchs wield political influence.

Firtash, whose main company, Group DF, describes him as one of Ukraine’s leading entrepreneurs and philanthropists, was arrested in Austria on March 12 at the request of U.S. authorities. The Americans accuse him of bribery over a business deal in India unrelated to events examined in this article. Firtash denies those allegations and is currently free on bail.

Firtash imported the cheap Russian gas through a Cypriot company of which he is sole director, and a Swiss one set up by Group DF. He and Group DF declined to answer questions about those two companies and their gas dealings. A spokesman said Firtash was not available to discuss his business operations, and that Group DF did not wish to comment on “any of the questions you put forth.”

The Kremlin spokesman Peskov said Putin has met Firtash but that they are not close acquaintances. He said Russia supplied gas at “lower prices” to Ukraine because Yanukovich had asked for it and Russia wanted to help Ukraine’s petrochemical industry. Peskov said the deals were arranged through Firtash because “the Ukrainian government asked for it to be that way.”

Yanukovich, who fled to Russia in February after mass demonstrations against his government, could not be reached for comment.

THE MIDDLEMAN

From the moment he first became Russia’s president, Putin moved to take control of his country’s most valuable resource: natural gas. After assuming power in 2000, he replaced the management of Gazprom, put trusted allies in charge, and ensured the Russian state controlled more than half the shares.

The corporate behemoth now supplies about a third of Europe’s gas, generating vital revenue for Russia and giving Putin a powerful economic lever. “Gazprom is very much a tool of Russian foreign policy,” says Rem Korteweg, senior research fellow at the Centre for European Reform. Every major deal that Gazprom signs is approved by Putin, people in the energy industry say.

Putin’s spokesman rejected such assertions: Gazprom, he said, “is a commercial, public company, which has international shareholders. It acts in the interests of its shareholders, which also include the Russian state.”

In normal times, Gazprom’s second biggest customer in Europe is Ukraine; Russian gas was piped directly across the border between the two countries until Russia cut off supplies earlier this year.

In the 2000s, though, Gazprom decided to sell gas not directly to Ukraine’s state gas company Naftogaz, but to intermediaries – in particular Firtash, an international gas dealer who had risen from humble origins.

Firtash grew up in west Ukraine, where his father worked in education and his mother in a sugar factory, according to an account Firtash gave during a meeting with the U.S. ambassador in Kiev in 2008. Both his parents disdained communism and lacked the contacts needed to get their son into university, he said.

He joined the army in 1986, then trained to be a fireman. When the Soviet Union collapsed, leading to Ukraine’s independence in 1991, Firtash found himself having to make a living in an uncertain world, according to his account to the ambassador. With his first wife, he set up a business in west Ukraine shipping canned goods to Uzbekistan, according to local media reports researched by the U.S. embassy.

A U.S. diplomatic cable, which summarised Firtash’s discussion with the ambassador, drily noted: “Due to his commodities business, (Firtash) became acquainted with several powerful business figures from the former Soviet Union.”

According to the cable, Firtash told the U.S. ambassador he had been forced to deal with suspected criminals because at that time it was impossible to do business in Ukraine cleanly. He said he had needed and received permission from a man named Semion Mogilevich to establish various businesses. Mogilevich, an alleged boss of organised crime in eastern Europe, is wanted by the U.S. Federal Bureau of Investigation for an alleged multi-million-dollar fraud in the 1990s involving a company headquartered in the United States. He was indicted in 2003, and described by the FBI in 2009 as having an “extensive international criminal network.”

Firtash has repeatedly denied having any close relationship with Mogilevich. Mogilevich could not be contacted for comment. He has previously denied any wrongdoing or any connection to the gas trade in Ukraine.

By 2002, a company called Eural Trans Gas, registered in Hungary, was transporting gas from Turkmenistan through Russia to Ukraine. Its ownership was unclear, but Firtash represented it. In July 2004, a new company, RosUkrEnergo, became the intermediary for gas deals between Russia and Ukraine. The owners of RUE were unknown at first, but it later emerged that nearly all of the company was owned by Firtash and Gazprom.

RUE bought gas cheaply and sold it on at a higher price in Ukraine and Europe. This arrangement guaranteed profits for RUE and was hugely controversial among Ukrainians who saw RUE as an unnecessary intermediary. Another U.S. diplomatic cable, from March 2009, described RUE as a “cash cow” and a “serious source of … political patronage.” In a website posting, RUE said that in 2007 it sold nearly $10 billion worth of gas and had net income of $795 million.

After Yulia Tymoshenko, herself a former gas trader, became prime minister of Ukraine in 2008, she reacted to public anger about the gas trade and moved to cut Firtash and RUE out of the business. She struck her own gas deal with Putin in 2009.

By that time, Firtash was rich. In the country’s 2010 presidential election, Firtash, by his own admission, aided the pro-Russian Yanukovich. A U.S. diplomatic cable described Firtash as a “major financial backer” of Yanukovich.

“Firtash supported Yanukovich in various ways,” said Vadym Karasiov, an aide to Viktor Yuschenko, Ukraine’s president from 2005 to 2010, in an interview. Karasiov said the mogul used his influence in the media to promote Yanukovich. In April 2010, in the aftermath of the election, Karasiov told the Kiev Post: “Without Dmitry Firtash there wouldn’t have been a (Yanukovich) victory.”

With Yanukovich president, Tymoshenko stepped down as prime minister. Business associates of Firtash were appointed to influential positions in the new administration. He had allies in the corridors of power, and ambitious plans to expand his business empire and get back into the gas trade. His friends in Russia were happy to help him.

THE LOANS

Tucked away in Nicosia, Cyprus, a bundle of tattered papers wrapped in string records Russian credit agreements made to Firtash companies. The documents, reviewed by Reuters, detail a series of financing deals worth billions of dollars.

The deals were arranged by a Russian lender called Gazprombank. Despite its name, the bank is not controlled by Gazprom, which holds only a minority stake. It is a separate business, overseen by people linked to Putin. They include Yuri Kovalchuk, a banker who until March 2014 controlled an investment firm that manages a majority stake in Gazprombank.

In a statement, Gazprombank said: “We do not receive any instructions from the Kremlin … The strategy of the bank is developed by its management board and approved by the board of directors. No other influence is possible.”

Asked whether Putin had any role in issuing the loans to Firtash companies, Kremlin spokesman Peskov said: “Putin, as president, does not have anything to do with this.”

Gazprombank began lending money to Firtash companies soon after Yanukovich took power in Ukraine in February 2010.

In June that year, Firtash established a company called Ostchem Investments in Cyprus. A month later, Gazprombank registered a credit line to the company of $815 million, according to the Cyprus documents. In September, Ostchem Investments bought a 90 percent stake in the Stirol fertiliser plant in Ukraine. It was perfect synergy: Firtash knew the gas business, and natural gas is a major feedstock for making fertiliser.

Further loans and deals with Firtash companies followed.

Reuters found that by March 2011, Gazprombank had registered credit lines of up to $11.15 billion to Firtash companies. The companies may not have borrowed that whole sum, but the documents indicate that loans up to that amount were available, according to Cyprus lawyers.

In the space of seven months in 2011 alone, Firtash acquired control of two more fertiliser plants in Ukraine, Severodonetsk Azot and Rivne Azot. He also bought the Nika Tera sea port, through which fertiliser and other dry bulk goods are shipped. He acquired a lender called Nadra Bank and invested in the titanium processing industry.

Such was his expansion that Firtash became the fifth largest fertiliser producer in Europe. Being a large employer brought not just potential profits but also political clout, he boasted. “We have relations with MPs,” Firtash told Die Presse in Austria in May. “We are big employers in the regions that they represent. Entire cities live on our factories. Election candidates seek our support.”

When asked in 2011 where the money came from to pay for his acquisitions, Firtash was coy. At a press conference called to announce his purchase of the Severdonetsk plant, he declined to name his major lenders. “It’s a secret,” he told Ukrainian journalists.

But a Gazprombank manager told Reuters that the Russian bank had led a consortium of lenders which in 2011 agreed to lend about $7 billion to Firtash. The official said Gazprombank itself lent Firtash $2.2 billion, and that Firtash still owed the bank $2.08 billion. The official declined to name other lenders in the consortium.

A $2.2 billion loan was a big commitment for Gazprombank: It amounted to nearly a quarter of the bank’s total capital, the maximum loan allowed by Russian banking rules for any single client or group. Based on regulatory filings, the loan facility made Firtash the biggest single borrower from Gazprombank.

Reuters was unable to establish exactly how much in total the Gazprombank consortium lent to Firtash companies.

In a statement, Gazprombank said that “the aggregate amount of loans disbursed to Ostchem Group” was “several times lower” than $11 billion. “And all capital requirements and limitations of the Central Bank of Russia in respect of loans granted have always been complied with by Gazprombank, including loans to Ostchem Group,” the statement said.

The bank declined to give any further details, saying it had to protect client confidentiality. The central bank had no comment.

GAS PROFITS

Firtash now had money, political connections and businesses that relied on large supplies of gas. What he needed next was fuel.

In January 2011, Firtash signed an unpublished agreement, seen by Reuters, with Gazprom to buy gas through a company called Ostchem Holding in Cyprus, where he is the sole director listed.

The gas deal was later extended to include sales to Ostchem Gas Trading AG in Switzerland. It was also agreed by Naftogaz, Ukraine’s state-owned gas firm, where Yanukovich had installed new senior management. Firtash needed Naftogaz’s sign-off because it controlled pipelines delivering gas and, until that point, had an exclusive deal to import gas from Gazprom.

Naftogaz’s decision to agree to the deal was an odd one. Not only did it mean Naftogaz would surrender its monopoly on Russian gas imports, but the deal could also potentially damage the state firm. Naftogaz had previously agreed with Gazprom to pay for a set amount of gas whether it could sell it in Ukraine or not. Firtash’s deal could leave the Ukrainian state firm buying gas it would struggle to sell.

Firtash’s return to importing gas became public knowledge after Yanukovich’s election victory. But the price he paid Moscow, and how much cheap gas he bought, remained unclear. An Ostchem spokesman told Reuters the price was “confidential information.”

Russian customs records seen by Reuters show that in 2012, Moscow sold the gas to Firtash for $230 per 1,000 cubic metres (the standard unit used in gas sales). In 2013 the average cost was $267 per unit. Those prices were at least one-third less than those paid by Ukraine’s Naftogaz.

Ukrainian customs documents and corporate filings show that Firtash’s Ostchem companies in Cyprus and Switzerland resold the gas to his chemical plants in Ukraine for $430 per unit. The prices and volumes suggest that the two offshore Ostchem companies made an operating profit of approximately $3.7 billion in two years.

Naftogaz’s current management is highly critical of the way in which Gazprom favoured Firtash’s companies. Aliona Osmolovska, chief of press relations, said: “These special deals for Ostchem were not in the interest of Ukraine.”

The real loser in the deal, though, was Gazprom. The arrangement, which Putin described during a press conference as having been made with the “input of the Russian leadership,” meant Russia sold its gas to Firtash for at least $100 per unit less than it could have made in Western Europe, according to Emily Stromquist, head of Russian energy analysis at Eurasia Group, a political risk research firm.

In addition, the profits from the subsequent resale of the gas were all reaped offshore by companies that did not benefit the Russian taxpayer. Those profits in 2012 and 2013 would have meant an additional $2 billion for Gazprom, whose ultimate majority owners are Russia’s citizens.

Gazprom declined to comment on its sales to Firtash’s companies.

Putin’s spokesman Peskov said Naftogaz agreed to Firtash receiving gas at low prices because the deal was intended to help Ukraine’s petrochemical industry. Asked why the gas was sold to companies in Cyprus and Switzerland, Peskov said: “Putin doesn’t need to approve this action. These operations are technical and were made by Gazprom according to the structures which are always used by its Ukrainian partners.”

Neither of the two Firtash companies that bought gas from Russia publishes accounts. Firtash declined to comment on the firms or their results.

UNEASY STANDOFF

The new government in Ukraine alleges that Yanukovich had allowed corruption to flourish and stolen millions of dollars. In the longer term, the new government says it wants to forge closer ties with the European Union and reduce its dependence on Russian gas.

In June, Moscow cut off supplies of gas to Kiev, claiming that it was owed billions of dollars by Ukraine’s state-owned Naftogaz. Late last month, the two countries struck a deal allowing supplies to resume, but the agreement runs only until March. Firtash retains large stocks of gas but has not imported new supplies since Yanukovich was ousted.

Firtash remains in Austria awaiting the outcome of extradition hearings. According to a U.S. indictment unsealed in April, he is suspected of a scheme to bribe Indian government officials to procure titanium. Two U.S. government officials said the American investigation into Firtash is continuing; they declined to give further details.

The Ukrainian oligarch has said the allegations are “without foundation” and has accused Washington of acting for “purely political reasons.” He has hired an all-star legal defence team. It includes Lanny Davis, who helped President Bill Clinton weather a series of White House scandals in the 1990s.

In his time of trouble Firtash has not been deserted by the Russians. Since his arrest he has received another loan in order to pay his bail: $155 million from Vasily Anisimov, the billionaire who heads the Russian Judo Federation, the governing body in Russia of Putin’s beloved sport.

“I have known Mr. Firtash for a number of years, though he is neither my friend nor business partner,” Anisimov told Reuters in an email. “I confirm that I loaned 125 million euros to him. This was a purely business transaction.” (Additional reporting by Michele Kambas in Cyprus, Elizabeth Piper and Jason Bush in Moscow, Oleksandr Akymenko and Pavel Polityuk in Kiev, Jack Stubbs in London, Warren Strobel in Washington and Michele Martin in Berlin; Edited by Richard Woods and Michael Williams)

 

al Aqsa Mosque, Core of Hostilities

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The Al Aqsa Libel: A Brief History

Posted By Kenneth Levin On November 26, 2014

Repeated claims in recent weeks by Palestinian Authority president Mahmoud Abbas that Israel was attacking or otherwise threatening the Al Aqsa mosque on the Temple Mount, and Abbas’s calls for Palestinians and other Muslims to take action to defend Al Aqsa and “purify” the Temple Mount, have been a key factor in the latest spate of deadly Arab assaults on Israelis. Other PA officials have echoed and elaborated on Abbas’s message, with some calling explicitly for murdering Jews in response to supposed provocations against Al Aqsa. Palestinian Authority media have conveyed the same message, punctuated by cartoons depicting Jews attacking Al Aqsa and Palestinians defending it. A number of those involved in the assaults against Jews in Jerusalem and elsewhere have asserted that they were acting in response to the calls of their leaders to protect Al-Aqsa. The false claims of Jewish threats against or damage to Al Aqsa have a long pedigree. They have been made by Abbas many times in the past and were a staple of Yasser Arafat’s screeds against Israel and against Jews more generally. Arafat labeled the terror war he launched in 2000 the “Al Aqsa Intifada.” He did so to cast the onslaught not as an aggressive campaign of mass murder of Israelis but as a struggle in defense of the Islamic holy site and to render the war not simply one of Palestinian pursuit of Israel’s destruction but as an Islamic fight against hostile, Al Aqsa-defiling non-believers. But such anti-Jewish libels have a still older history, pre-dating Arafat, pre-dating Israel’s gaining control over the Old City of Jerusalem in 1967, even pre-dating Israel’s creation. In 1929, during the British Mandate, the rabidly anti-Jewish, British appointed Grand Mufti of Jerusalem, Haj Amin el-Husseini, claimed that Jews were threatening Al-Aqsa and sought to end Jewish prayer at the Western Wall (a Temple Mount retaining wall, which had become a place of Jewish prayer in the context of Jews being barred from ascending to the Temple Mount itself – the site of the First and Second Temples – for much of the preceding 2,000 years). According to the Mufti, the Western Wall was an Islamic holy place and Jewish prayer there was both an affront to Islam and a step towards Jewish attacks against Al-Aqsa. The Mufti is also reported to have distributed doctored photographs showing a damaged Al-Aqsa, with claims that the Jews were responsible. The Mufti’s incitement was accompanied by calls for the murder of Jews as revenge. Ensuing attacks by Arab mobs in Jerusalem and elsewhere in Mandate territory resulted in the death of 133 Jews and major injury to over 200 others. The most severely affected community was that of Hebron, where 64 Jews were slaughtered and another 85 injured. British authorities did virtually nothing to stop the attacks. They did evacuate the surviving Jews from Hebron. They also exonerated the Mufti from any responsibility for the murders and took almost no steps against those who actually carried out the carnage. (Only in 1937,when The Mufti began to instigate attacks against British forces, did the authorities seek to arrest him. El-Husseini, however, escaped and fled the Mandate, eventually making his way to Berlin, where he spent much of World War II as Hitler’s guest. Among his activities while in Europe were recruiting Balkan Muslims and Muslims in Nazi-occupied Soviet territory to Nazi SS units and broadcasting in Arabic to the Middle East and north Africa calling on Arabs to support the Nazis and to destroy the Jews in their midst.) Abbas has praised the Mufti as an inspiring hero of the Palestinian cause worthy of emulation. In reality, far from threatening Al Aqsa, Israel has repeatedly bowed to Arab claims of exclusive rights on the Temple Mount. In the wake of Israel’s gaining control of the Old City and the Temple Mount in 1967, the Israelis, with then defense minister Moshe Dayan delineating the policy, granted the Muslim religious authority, the Waqf, control over the Temple Mount. Jews would be allowed access to the Mount but forbidden to pray there. Christians and other non-Muslims would also be allowed access. The Israel Antiquities Authority was to oversee any construction or other physical changes on the Mount that would have an impact on this most sensitive of archaeological sites. The prohibition of Jewish prayer on the Mount has been strictly enforced by Israeli governments. While there is increasing support among Israelis for a small area of the Mount – far from Al Aqsa and the Dome of the Rock – to be set aside for Jewish prayer, no such arrangement has won government backing. Furthermore, Jewish and other non-Muslim visitors to the Temple Mount have commonly been harassed by Waqf guards and other Muslims, and Israeli officials have responded typically not by countering such harassment but by restricting non-Muslim access. Also, particularly between 1999 and 2001, the Waqf, in the context of establishing and expanding additional places of Muslim worship on the Mount and seeking to destroy evidence of historic Jewish (and Christian) connection to the Mount, brought heavy earth-moving equipment onto the Mount and dug up and hauled away thousands of tons of material. This material contained the remains of structures and other relics from pre-Muslim epochs, most notably from the First and Second Temple periods. In the context of any archaeological excavation of such a sensitive and historically rich site, the work would have been approached with archaeologists’ hand trowels and brushes. Yet the Israeli government – led for most of this period by Ehud Barak – did nothing to block this desecration of the Temple Mount, and the Israel Antiquities Authority likewise did nothing. A broad coalition of Israelis, drawn from across the nation’s political and religious spectra and including such luminaries as Amos Oz and A.B. Yehoshua, formed “The Council for the Prevention of Destruction of Antiquities on the Temple Mount” and urged the Barak government to stop the desecration, but to little avail. So the Al Aqsa libel stands truth on its head: Muslim supremacism on the Temple Mount has not only been maintained since Israel gained control of the Old City, but has been expanded through aggressive Muslim actions and general Israeli acquiescence. Bur the anti-Jewish libel lives on, because it, and the violence it generates, serve its purveyors. Abbas uses it to build up his own anti-Israel and anti-Jewish bonafides against the popularity of Hamas among Palestinians. He also employs it to draw wider Arab attention away from the bloody chaos enveloping much of the Arab world, chaos that has led some Arab leaders to at least temporarily relate to Israel as an ally confronting shared threats. Abbas seeks to resurrect the focusing of Arab enmity on Israel. Abbas is also using the Al Aqsa libel and the accompanying bloodletting to advance his pursuit of UN and European “recognition” and international pressure on Israel for unilateral concessions, particularly withdrawal to the indefensible pre-1967 armistice lines. Abbas, like Arafat before him, seeks to achieve Israeli withdrawal while avoiding any bilateral agreement with Israel that would entail formal acceptance of Israel’s legitimacy within any borders. The Grand Mufti’s Al Aqsa libel and his incitement to the murder of Jews ultimately served him well. An investigating commission sent from London found the Arabs fully responsible for the bloodshed but then recommended steps be taken against the Jews so as to assuage Arab hostility, steps that violated Britain’s obligations to the Jewish community under the terms of its League of Nations mandate. European and some American media coverage of the recent violence, and the reactions of United Nations officials, various European governments and, with rare exception, the Obama administration, downplay or ignore entirely Abbas’s cynical use of the libel and incitement of murderous violence. Some distort the realities surrounding the violence into an indictment of Israel. And so again the libel and its murderous fallout redound to the perpetrator’s gain. If you need more:

  • This past week Israel’s south remained quiet, with two exceptions. In Judea, Samaria and Jerusalem the violence continues, partially to show solidarity with Al-Aqsa mosque. Rocks and stones are thrown, as are Molotov cocktails, and there have been stabbing and vehicular attacks. Hamas continues its anti-Israeli incitement campaign, while senior PA and Fatah figures claim Israel is responsible for the rioting and violence.
  • In recent weeks the Israel Security Agency exposed a Hamas terrorist squad whose members had served prison sentences in Israeli in the past. They planned to assassinate Israeli Foreign Minister Avigdor Lieberman and had already begun gathering operational intelligence and preparing weapons.

Behind Obama’s Executive Order on Immigration

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Some key items are coming to the surface with regard to the executive order on immigration. Preferential treatment of chosen classes and conditions are targets of the White House while others are going to pay monetarily.

But off script, Obama admitted this past week that he DID change the law on immigration.

Fast forward to Tuesday, when Obama was speaking on immigration reform to a group in Chicago. When protesters began yelling at Obama to stop all deportations, the president became frustrated and answered: “There have been significant numbers of deportations. That’s true. But what you’re not paying attention to is the fact that I just took action to change the law.”

 

Rather than employing U.S. citizens that already have high tech skills and work history or rather than training U.S. citizens for employment in the technology sector, the White House has chosen foreigners to first priority.

Opportunities for Tech Workers, Firms in Obama’s Immigration Order

With Washington and much of the country abuzz about the politics and legality of President Barack Obama‘s executive order on immigration, it is useful to recognize the economic benefits of certain overlooked features of that order–things that, to a modest degree, enhance work opportunities for skilled immigrants.

For example, as immigration expert Vivek Wadhwa has highlighted, the president’s order makes the temporary (six-year) H-1B visa for technical workers portable.

H-1B visas, currently capped at 65,000 per year, are loved by the tech industry, and why not? They give employers market power over visa holders. Making it easier for these skilled immigrants to move to other employers benefits not only them but potentially many new or young companies in need of tech talent. While “coding academies” are springing up around the U.S. to train Americans of all ages on software coding, the tech market could still use a lot more talent, even if some of it comes from abroad.

The president’s order also could allow as many as 10,000 additional immigrant entrepreneurs to remain in the U.S. This step is significant in light of evidence compiled by Mr. Wadwha and his research colleagues that immigrants punch well above their weight in forming successful tech companies: They accounted for 25% of successful tech enterprises from 1995 to 2005, almost double the share of the U.S. population born elsewhere (13%). These successful immigrant-founded companies generate jobs for native-born Americans and are clearly a win for the U.S. economy.  Read more here.

But it gets worse. There is a money component, and collusion enters the White House plan.
Hiring Illegal Immigrants Will Earn Businesses $3,000 Per Employee Under President’s Plan 

Hiring illegal immigrants used to come with a hefty punishment if a business owner was found out, but now under President Obama’s plan announced through executive action last week, job creators will be rewarded.

The president’s call to offer undocumented workers a path to citizenship will come with a $3,000 per employee financial incentive to any business that wants to hire these workers.

Fox News points out that because of a “kink” in the Affordable Care Act (aka Obamacare), “businesses will not face a penalty for not providing illegal immigrants health care.” Furthermore, these workers will not be eligible for public benefits “such as buying insurance on ObamaCare’s health exchanges.”

“If it is true that the president’s actions give employers a $3,000 incentive to hire those who came here illegally, he has added insult to injury,” Rep. Lamar Smith, a Texas Republican, commented to The Washington Times. “The president’s actions would have just moved those who came here illegally to the front of the line, ahead of unemployed and underemployed Americans.”

President Obama doesn’t believe that bringing undocumented workers into the workforce is a bad thing, as he stated in recent comments on the executive action.

“Immigrants are good for the economy. We keep on hearing that they’re bad, but a report by my Council of Economic Advisers put out last week shows how the actions we’re taking will grow our economy for everybody,” he said.

John Husing, chief economist for the Inland Empire Economic Partnership in California, one of the most immigrant-heavy states in the nation, agreed that President Obama’s plan was a good thing in comments to the Pasadena Star News.

“Most of those people are probably already working anyway,” Husing said. “And when you talk to any demographer they will tell you that one of the biggest problems we have as a society is that our labor force is getting very old. Most of the undocumented people who are here tend to be younger and they would add to the available workforce in the age group that employers need.”

In the same publication, California Republican assemblyman Tim Donnelly disagreed.

“If you introduce 5 million individuals into the labor force — and I think that’s a really low figure — it will have a dramatic impact on those who are already seeking work…. It will especially have an effect on people who are working at lower income levels where any change in the labor market has the effect of lowering wages. This could depress wages. That’s a real concern.”

What do you think about giving employers financial incentives to hire illegal immigrants — good move, or will it depress the job hunt for native workers?

 

 

 

Schumer Breaks Ranks on Obamacare

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Obamacare Will Cost 2.9 Million or More Jobs a Year

Obamacare Facts & Figures

  • The law cuts an estimated $716 billion from Medicare over ten years. However, these “savings” are not set aside to preserve Medicare’s future, instead they are used to fund new spending created by the law.
  • Nearly one-third of all seniors rely on Medicare Advantage, the private health care option in Medicare. Despite the program’s growing enrollment and beneficiary satisfaction, Obamacare makes deep cuts to the program that jeopardize its viability in coming years.
  • In addition to payment cuts, Obamacare imposes new taxes on drug companies and medical device makers, and new regulations that will make health care more costly for seniors.

So, what is the real reason that Senator Chuck Schumer now opposes Obamacare?

Chuck Schumer Flip-Flops on the Politics of Obamacare

2:20 PM, Nov 25, 2014 • By JOHN MCCORMACK

Chuck Schumer, the high-ranking Democratic senator from New York, gave a speech today at the National Press Club in which he said that it “made no political sense” for Democrats to focus on passing the Affordable Care Act. The New York Times reports:

“Unfortunately, Democrats blew the opportunity the American people gave them,” Mr. Schumer said, according to his prepared remarks. “We took their mandate and put all of our focus on the wrong problem – health care reform.”

Mr. Schumer’s calculus could seem coldly political. He points out that only a third of the uninsured population is even registered to vote. “To aim a huge change in mandate at such a small percentage of the electorate made no political sense,” he said. “So when Democrats focused on health care, the average middle-class person thought ‘the Democrats are not paying enough attention to me.’”

Back when the Affordable Care Act was signed into law, Schumer was singing a different tune. The weekend after the law was enacted, Schumer claimed on Meet the Press that it “really does deliver for the middle class” and confidently predicted that by November 2010 “those who voted for health care will find it an asset, those who voted against it will find it a liability.”

“I think as people learn about the bill, and now that the bill is enacted, it’s going to become more and more popular,” Schumer said. “The lies that have been spread, they vanish because you see what’s in the bill. We had ‘death panels’ in the summer. People are going to see there are no death panels. ‘Illegal immigrants are going to get health care,” it’s clear that’s not true in the bill. And the number one lie that bothers people is ‘You’ll lose your insurance if you have it now and you’re pretty happy with it.'”

Of course, Democrats were blown out in 2010 after the bill passed and again in 2014 after it was implemented and millions of Americans learned that what Schumer called “the number one lie that bothers people” was actually true.

When Schumer was asked during his 2010 Meet the Press appearance about polling that showed the middle-class opposed the Affordable Care Act, he replied:

Well, it really does deliver for the middle class. But, as I said, there are lots of, lots of misinformation. That firefighter in Rockville Centre, and you could repeat that with tens of millions of families, are worried. People ask themselves, particularly at a time of recession, “How is it going to affect me?” They’ve been told by special interests that are against the bill that they will lose their coverage. People who have coverage now, whether through an employer or Medicare, will keep it and it will get better, actually, because the waste and the duplication will, will be cut back greatly. They’ll keep it longer, they’ll keep it better, they’ll pay less. So this is a bill aimed at the middle class. And my point being, if you look at a snapshot poll today, some of them show–there was one that was 49-40 in favor of health care, this one’s against it. But I would predict to you, and I feel very, very strongly about this and firmly about this, that as people learn what’s actually in the bill, that six months from now, by election time, this is going to be a plus because the parade of horribles, particularly the worry that the average middle-class person has that this is going to affect them negatively.

That Schumer, arguably the Democrats’ top political strategist in Congress, would now publicly admit that the politics of Obamacare has been terrible for Democrats is remarkable. It should send chills down the spines of the law’s supporters.

Iran ‘Richer’ Today Due to John Kerry

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The legacy of the Obama administration will not be Obamacare, it will not be amnesty, it will be eliminating America’s enemies and Iran has become the closest ally to the U.S. State Department under the edict of the White House with John Kerry leading the charge.

Obama wrote a letter to the Mullahs back in 2008 as he became the presidential nominee. The letters to the Ayatollahs continued and open talks have continued such that John Kerry led the charge to move the needle to stop the Iranian nuclear weapons program. The expiration date for the agreement was today and they failed. The talks have now officially been extended another 7 months.

Iran is a state sponsor of terror and has been an avowed enemy of the United States going back to the late 70’s but John Kerry has dismissed all the history. A deal with Iran or no deal with Iran on their nuclear weapons program is bad news either way….the point is the program needs to be destroyed, there is and never was a peaceful nuclear program.

Each day that passes, Iran’s centrifuges continue to spin putting a nuclear warhead only months away. Iran does have everything to hide and to lie about such that Iran refuses the International Atomic Energy Agency access for inspections which has been agreed to and performed in the past and often.

There is a nuclear arms race in the Middle East and not only is Israel in jeopardy with its virtual existence but Saudi Arabia is also.

The story gets worse however as additional sanctions against Iran have been lifted. Some early sanctions were lifted just to get Iran to the negotiation table, and indeed since many months have passed with no resolution, additional sanctions were lifted by John Kerry to keep Iran at the table for the next 7 months.

Iran’s economy has been slipping from stability for a very long time due to effective sanctions, but their economy has received huge positive money shots due to lifted sanctions but now it gets better for them as additional sanctions will provide Iran with an economic income of seized monies up to $700 million a month. Iran has been rewarded for bad behavior and for stonewalling talks, hence John Kerry is either being a naïve dupe or a willing participant in allowing Iran’s to thrive.

Now the question is what will occur during the 7 months of extended talks? Could Saudi Arabia get involved to stop the enrichment? Will Israel be drafting war plans? Will John Kerry continue on a fool’s errand during the next 7 months to keep the talks viable and will they ultimately fail then?

Congress has been purposely left out of the loop of the talks yet they are in fact aware of some conditions. This is a time they will use once the 114th Congress is seated in January to stop the madness, pass additional irrevocable sanctions and the division in Congress and the State Department will continue.

All sides have been working from a thin ‘framework‘ such that Iran had little to do for compliance and now Iran is asking for a secondary framework to be developed.

It is going to be difficult in coming months due to continued military sequestration, the expanding footprint in Afghanistan, the expanding footprint in Iraq, a new Congress and then immigration. 2015 will not start off well.

Question is who is gonna notice and be proactive?