WalMart has a Secret Global Operation

Posted on June 17, 2015June 17, 2015 by Denise Simon

In 2013, WalMart announced an ‘All American’ objective….yet there are other truths.

Wal-Mart Stores Inc will buy an additional $50 billion in U.S.-made goods over the next decade in areas like sporting goods and high-end appliances in what the world’s largest retailer called a bid to help boost the U.S. economy. Wal-Mart, the largest private employer in the United States, also said on Tuesday it plans to hire 100,000 newly discharged veterans over the next five years, at a time when the U.S. unemployment rate is at 7.8 percent.

The moves are likely to receive a cool reception from critics, who claim Wal-Mart does not pay its workers enough and slam the retailer for selling too many goods made in lower-cost countries like China. The company is also under pressure over its sourcing practices, particularly after a deadly fire at a Bangladesh factory that made Wal-Mart clothes.

Then Walmart went all in with China.

But WalMart is fully offshore hiding monies for tax purposes…what would Barack Obama say?

Wal-Mart Has $76 Billion in Undisclosed Overseas Tax Havens

Wal-Mart Stores Inc. owns more than $76 billion of assets through a web of units in offshore tax havens around the world, though you wouldn’t know it from reading the giant retailer’s annual report. A new study has found Wal-Mart has at least 78 offshore subsidiaries and branches, more than 30 created since 2009 and none mentioned in U.S. securities filings. Overseas operations have helped the company cut more than $3.5 billion off its income tax bills in the past six years, its annual reports show. The study, researched by the United Food & Commercial Workers International Union and published Wednesday in a report by Americans for Tax Fairness, found 90 percent of Wal-Mart’s overseas assets are owned by subsidiaries in Luxembourg and the Netherlands, two of the most popular corporate tax havens.

Units in Luxembourg — where the company has no stores — reported $1.3 billion in profits between 2010 and 2013 and paid tax at a rate of less than 1 percent, according to the report. All of Wal-Mart’s roughly 3,500 stores in China, Central America, the U.K., Brazil, Japan, South Africa and Chile appear to be owned through units in tax havens such as the British Virgin Islands, Curacao and Luxembourg, according to the report from the advocacy group. The union conducted its research using publicly available documents filed in various countries by Wal-Mart and its subsidiaries. Randy Hargrove, a Wal-Mart spokesman, called the report incomplete and “designed to mislead” by its union authors. He said the company has “processes in place to comply with applicable SEC and IRS rules, as well as the tax laws of each country where we operate.”

Mailbox Subsidiaries

The union behind the study backs the Organization United for Respect at Wal-Mart, a group that campaigns for wage increases and more predictable schedules. Wal-Mart has historically resisted unions and discourages employees from joining them. The report comes a week after the Group of Twenty nations unveiled its latest effort to combat multinational corporate tax avoidance. The body wants companies to disclose to regulators where they book profits, employees and sales, so tax authorities can be aware of discrepancies between where corporations report income and where they have operations. Hargrove, the Wal-Mart spokesman, pointed to guidance issued by the SEC that permits companies to avoid disclosure of subsidiaries with significant “intercompany transactions.” He said Wal-Mart’s tax savings overseas was driven by lower rates in markets including Canada and the U.K.

‘Continuing Evidence’

Companies such as Google Inc., Apple Inc. and Starbucks Corp. have come under fire for avoiding billions of dollars of income taxes by attributing profits to mailbox subsidiaries in low-tax jurisdictions like Bermuda. The Group of Twenty has directed the Organization for Economic Cooperation and Development to develop plans to crack down on such strategies. The new Wal-Mart disclosures could expand the scope of international tax reform, which has often focused on technology companies that move profits offshore by assigning valuable patent rights to mailbox units. Bloomberg News reported last year that Inditex SA, the parent of Zara, the world’s biggest fashion retailer, cut its taxes by shifting billions of dollars of profits to a tiny Dutch unit. “This report is continuing evidence that everybody has been engaging in cross-border tax avoidance,” said Stephen E. Shay, a professor at Harvard Law School and former deputy assistant secretary for international tax affairs for the Obama Treasury Department.

Hybrid-Loan Strategy

Nearly a decade ago, Wal-Mart ran into trouble over strategies to avoid U.S. state income taxes. It used a real estate investment trust to effectively pay rent to itself, generating big tax deductions, even though the rent payments never left the company. At least six states changed their tax laws after publicity about the tactics. Since then, Wal-Mart has stepped up its use of offshore tax havens. It has created 20 new subsidiaries in Luxembourg alone since 2009, according to the report. Wal-Mart employs a popular legal strategy in that country called a hybrid loan. It permits companies’ offshore units to take tax deductions for interest paid — typically on paper only — to their parents in the U.S. The parent, however, doesn’t include that interest as taxable income in the U.S. The OECD has called for an end to the tax benefits of such loans. Luxembourg generated headlines last year after the International Consortium of Investigative Journalists revealed its role in cutting the tax bills of hundreds of multinationals.

Union Funding

U.S. companies owe tax at a rate of 35 percent but can defer indefinitely the income taxes on profits attributed to overseas units. In 2011, Wal-Mart’s then-chief executive officer, Mike Duke, called in testimony before Congress for a system that would exempt from U.S. income tax the earnings that multinationals generate overseas. Wal-Mart’s accumulated offshore earnings have doubled to $23.3 billion in 2015 from $10.7 billion 2008. The company operates about 6,300 stores in 27 countries outside the U.S. and last fiscal year reported 28 percent of its sales abroad, or about $137 billion. Wal-Mart paid $6.2 billion in U.S. income tax last year, Hargrove, the company spokesman, said, or “nearly 2 percent of all corporate income tax collected by the U.S. Treasury.” Americans for Tax Fairness called on the European Union to open investigations into whether the Luxembourg tax benefits constitute illegal state aid. The EU has issued preliminary findings that this was indeed the case with companies using similar strategies in various countries, including as Starbucks in the Netherlands, Apple in Ireland and Fiat SpA in Luxembourg. The tax group receives most of its funding from foundations, including the Ford Foundation, Open Society Foundations, Bauman Foundations and Stoneman Family Foundation. It’s also funded by public-sector unions, including the American Federation of State, County and Municipal Employees and the National Education Association.

Obama and DHS Fully Compromised our Security

Posted on June 16, 2015June 16, 2015 by Denise Simon

Getting into America just got easier….

Easier? Yes and while no one is talking about it but I got a tip from an insider. Did you hear the announcement by Jeh Johnson? This program already exists.

It might be a lot easier – and faster – for international travelers to fly into the United States soon.

The U.S. Department of Homeland Security said Friday it will seek approval to put pre-clearance centers at 10 airports in nine foreign countries.

If negotiations are successful, those centers will allow travelers to go through U.S. Customs and Border Protection clearance before they get on their airplane headed to the United States. Once landed, they would not have to be rescreened.

Here’s what Homeland Security Secretary Jeh Johnson said in the DHS announcement:

“A significant homeland security priority of mine is building more preclearance capacity at airports overseas. We have this now in 15 airports. I am pleased that we are seeking negotiations with 10 new airports in nine countries.

“I want to take every opportunity we have to push our homeland security out beyond our borders so that we are not defending the homeland from the one-yard line. Preclearance is a win-win for the traveling public. It provides aviation and homeland security, and it reduces wait times upon arrival at the busiest U.S. airports.”

The U.S. will enter talks with officials in Belgium, the Netherlands, Norway, Spain, Sweden, Turkey and the United Kingdom in Europe, as well as Japan and the Dominican Republic.

The 10 airports would be Brussels Airport, Belgium; Punta Cana Airport, Dominican Republic; Narita International Airport, Japan; Amsterdam Airport Schipol, Netherlands; Oslo Airport, Norway; Madrid-Barajas Airport, Spain; Stockholm Arlanda Airport, Sweden; Istanbul Ataturk Airport, Turkey; and London Heathrow Airport and Manchester Airport in the United Kingdom.

“These countries represent some of the busiest last points of departure to the United States – in 2014, nearly 20 million passengers traveled from these ten airports to the U.S.,” DHS said.

For travelers to Dallas/Fort Worth International Airport, the pre-clearance would be available on flights from London Heathrow (American Airlines and British Airways); Amsterdam (KLM Royal Dutch Airlines); Tokyo Narita (American); Madrid-Barajas (American); and Punta Cana (Sun Country Airlines).

Officials from trade group Airlines for American and from American and JetBlue Airways quickly praised the DHS effort.

“U.S. airlines drive $1.5 trillion in economic activity, and by improving the passenger experience for visitors or those returning to the United States, while improving security, we can build on that,” A4A President and chief executive Nick Calio said. “The addition of these pre-clearance airports will help increase safety and security while improving the passenger experience with shorter wait times and quicker connections on arrival in the U.S.”

“Expanding air preclearance is a tremendous step forward for improving the overall travel experience for our customers and welcoming more visitors to the United States,” AA chief operating officer Robert Isom said. “Preclearance eases the congestion at our U.S. gateway airports and ensures our customers get to their destinations faster.”

In addition to the three airports served by American from its D/FW hub, the pre-clearance centers would go to four other airports served by American out of other U.S. airports – Manchester, Amsterdam, Punta Cana and Brussels.

JetBlue passengers would benefit from the Punta Cana pre-clearance center.

“We believe that in addition to the need for an increase in CBP staffing at key U.S. gateway airports, more preclearance facilities like the ones being proposed around the globe are an important tool to enhance our nation’s security and reduce the number of travelers clearing Customs stateside — and that ultimately reduces wait times for travelers on all airlines,” JetBlue president and CEO Robin Hayes said.

United also thanked DHS for the proposal.

“We have worked closely with U.S. Customs and Border Protection and support developments that provide more convenience for our customers,” the carrier said in a statement. “We thank Secretary Johnson and his team at the Department of Homeland Security and CBP for their engagement with United and the airline industry, and we look forward to partnering with them on this initiative to facilitate travel and reduce wait times.”

U.S. Travel Association president Roger Dow issued this statement:

“When the experience for the international traveler improves, the U.S. economy improves, and again this administration deserves praise for pressing ahead with innovative policies that simultaneously bolster national security and streamline the customs entry process.

“Customs preclearance is a program that has proven itself effective, and extending it to these key travel markets will undoubtedly boost visitation. As a bonus, adding preclearance facilities will further relieve pressure on the customs entry process here on our shores, improving the system generally.

“Evolving policies such as these are a big reason why we surpassed a record 74 million international visitors to the U.S. last year, and are well on pace to reach 100 million visitors annually by 2021. With overseas visitors spending an average of $4,300 per person, per trip, that’s just good economic sense.”

Customs and Border Protection currently staffs 15 centers in six countries: Dublin and Shannon in Ireland; Aruba; Freeport and Nassau in the Bahamas; Bermuda; Calgary, Toronto, Edmonton, Halifax, Montreal, Ottawa, Vancouver and Winnipeg in Canada; and Abu Dhabi in the United Arab Emirates.

This is a ‘preclearance system’. Please read the full description here.

In 2013, there was a Customs and Border Patrol hearing on this matter in the House of Representatives. Essentially, we cant control security within our borders now we are extending them globally and relying on foreign governments and security services? That did not work out at all in Benghazi. Here is the testimony and it is a must read.

Listen and Read How Wrong Obama is on Iran

Posted on June 15, 2015June 15, 2015 by Denise Simon

Even the Russians did not lie as badly as the Iranians have and Kerry at the behest of the White House is ignoring the historical lies.

Sen. Bob Corker (R-Tenn.) has sent a blistering letter to President Obama denouncing reported Iran concessions. It reads:

Dear Mr. President:

It is breathtaking to see how far from your original goals and statements the P5+1 have come during negotiations with Iran. Under your leadership, six of the world’s most important nations have allowed an isolated country with roguish policies to move from having its nuclear program dismantled to having its nuclear proliferation managed. Negotiators have moved from a 20-year agreement to what is in essence a 10-year agreement that allows Iran to simultaneously continue development of an advanced ballistic missile program and research and development of advanced centrifuges. This also will allow Iran’s economy to be restored with billions of dollars returned to its coffers, a development that administration officials concede will be used at some level to export terrorism in the region.

I am alarmed by recent reports that your team may be considering allowing the deal to erode even further. Only you and those at the table know whether there is any truth to these allegations, and I hope reports indicating potential concessions on inspections and on the full disclosure of Iran’s possible military dimensions (PMDs) are inaccurate.

Regarding inspections, surely your administration and those involved in the negotiations will adhere to an “anytime, anywhere” standard. No bureaucratic committees. No moving the ball. No sites off limits.

You have publicly acknowledged Iran’s long history of covert nuclear activity. We all are aware of the importance of having a full understanding of Iran’s nuclear program, including PMDs of those activities as part of any agreement. Yet, recently I have heard of a potential cumbersome process where the International Atomic Energy Agency (IAEA), with no confirmation from Iran, will make PMD determinations about Iran’s nuclear program in order to protect Iran’s national pride, meaning Iran will not have to publicly admit to these activities. Today, the IAEA cannot get access to information Iran agreed to share pursuant to a 2013 agreement. By not requiring Iran to explicitly disclose their previous weaponization efforts on the front end of any final agreement, we will likely never know, in a timely fashion, the full extent of Iranian capabilities.

I understand the dynamics that can develop when a group believes they are close to a deal and how your aides may view this as a major legacy accomplishment. However, as you know, the stakes here are incredibly high and the security implications of these negotiations are difficult to overstate. As your team continues their work, if Iran tries to cross these few remaining red lines, I would urge you to please pause and consider rethinking the entire approach. Walking away from a bad deal at this point would take courage, but it would be the best thing for the United States, the region and the world.

One hopes that Corker’s colleagues are paying attention and that they are ready to prevent a catastrophic deal.

ISIS New Mansion for Their Headquarters

Posted on June 15, 2015June 15, 2015 by Denise Simon

WASHINGTON — An internal State Department assessment paints a dismal picture of the efforts by the Obama administration and its foreign allies to combat the Islamic State’s message machine, portraying a fractured coalition that cannot get its own message straight.

The assessment comes months after the State Department signaled that it was planning to energize its social media campaign against the militant group. It concludes, however, that the Islamic State’s violent narrative — promulgated through thousands of messages each day — has effectively “trumped” the efforts of some of the world’s richest and most technologically advanced nations.

It also casts an unflattering light on internal discussions between American officials and some of their closest allies in the military campaign against the militants. A “messaging working group” of officials from the United States, Britain and the United Arab Emirates, the memo says, “has not really come together.” More here.

Islamic State leaders claim to be living in luxury in a vast mansion seized from a billionaire Arab sheikh.

The jihadi group’s social media sites posted photographs of the spectacular mansion, under the headline: ‘A castle for the tyrants of Qatar in Palmyra’.

The sprawling hilltop mansion is similar in style to the soon-to-be London home of the current emir, who was educated at Harrow and Sandhurst.

Sheikha Mozah bint Nasser Al Missned, 55, one of the three wives of Qatar’s former emir Sheikh Haman bin Khalifa Al Thani, bought three prime properties in London’s Regent’s Park for an estimated £120million in 2013.

Once completed, the 13-bedroom palace will be the London home of Sheikh Hamad’s son, the 35-year-old Sheikh Tamim bin Hamad.

It is expected to be the most valuable residential property in London in private hands, with estimates claiming it will be worth about £280million.

It will also be the first residential property in the UK to break the £200million mark.

The family also own the Shard – the tallest skyscraper in Europe, Harrods and the Olympic Village.

In recent years, Qataris are thought to have bought almost one in 30 homes in London worth more than £2million.

Photo essay of the mansion is here.

The Fourth Reich, the essay of 2015 on Islamic State.

In a hard-hitting essay on ISIS (Islamic State of Iraq and Syria) for The Daily Mail, the 2001 Nobel Prize winning author, V.S. Naipaul, wrote: “ISIS could very credibly abandon the label of Caliphate and call itself the Fourth Reich.” Among the writings on Islam and Muslims in recent years, Naipaul’s, as in the books Among the Believers and Beyond Belief, have been perhaps the most incisive and penetrating in exploring the extremist politics of the global Islamist movement from inside of the Muslim world. And that ISIS on a rampage, as Naipaul observed, revived “religious dogmas and deadly rivalries between Sunnis and Shi’as, Sunnis and Jews and Christians is a giant step into darkness.”

Ever since the relatively obscure Abu Bakr al-Baghdadi stepped forth on the pulpit of the Great Mosque in Mosul, Iraq, on June 28, 2014 to announce the rebirth of the Caliphate (abolished in 1924 by the Turkish leader Mustafa Kemal Ataturk), with al-Baghdadi himself assuming the title of Caliph Ibrahim, the ruling head of the ummah, or worldwide community of Muslims, many might agree with Naipaul, despite the hyperbole — he has left out a potentially nuclear Iran — that “ISIS has to be seen as the most potent threat to the world since the Third Reich.”

It is baffling to read about or watch the sweep of terror spawned by ISIS in the name of Islam — a world religion with a following approaching two billion Muslims. It is insufficient merely to point out that the barbarism of ISIS reflects its origins in the fetid swamps of the Sunni Muslim insurgency of post-Saddam Iraq. But ISIS is neither a new presence in the Arab-Muslim history, nor is the response to it by Western powers, primarily Britain and the United States, given their relationship with the Middle East over the past century.

We have seen ISISes before, and not as al-Qaeda’s second coming.

The first successful appearance of an ISIS in modern times was the whirlwind with which the Bedouin warriors of Abdulaziz ibn Saud (1876-1953) emerged from the interior of the Arabian Desert in 1902 to take hold of the main fortress in Riyadh, the local capital of the surrounding region known as Najd. Some twenty-four years later, this desert warrior-chief and his armies of Bedouin raiders defeated the ruling Sharifian house in the coastal province of Hejaz, where lie Islam’s two holy cities, Mecca and Medina. The full detailed summary and essay is here.

Faceoff with Russia

Posted on June 15, 2015June 15, 2015 by Denise Simon

Russia a threat to Baltic states after Ukraine conflict, warns Michael Fallon

Russian president Vladimir Putin could repeat the tactics used to destabilise Ukraine in Baltic members of the Nato alliance, the defence secretary has warned.

Michael Fallon said Nato must be ready for Russian aggression in “whatever form it takes” as he acknowledged tensions between the alliance and Moscow were “warming up”.

His comments came after prime minister David Cameron called on Europe to make clear to Russia that it faces economic and financial consequences for “many years to come” if it does not stop destabilising Ukraine.

Ukrainian forces pulled out from the strategically important town of Debaltseve after fierce fighting, which had continued despite the ceasefire agreed following international talks.

‘Nato’s resolve’

Lieutenant James Byrn, 1st Brigade Combat Team, 3rd Infantry Division, US Army, said: “We’re actually here training, obviously with our Polish and other Nato allies, just to demonstrate Nato’s resolve and to prepare our allies to be able to work with us and us work with them jointly, in order to succeed against any potential adversaries we may face.”

The exercises span various locations in Poland and the Baltic states, and will involve troops from Lithuania, Latvia and Estonia as well as Denmark, Finland, the United States, Germany, France and Portugal. Last year the exercise involved 4,500 troops from several nations.

*** Russian troops took control of Ukraine’s Crimea region. The Kremlin also is backing militant separatists fighting Kiev.

In response to all of this, Washington stepped up military exercises in Europe to help calm its friends and allies. The Marines have been heavily involved in this “European Reassurance Initiative,” now called Operation Atlantic Resolve. The Marines have been stockpiling tanks and other equipment in Scandinavia since last year, 2014.

The Marine Corps’ Maritime Prepositioning Force (MPF) and Marine Corps Prepositioning Program – Norway (MCPP-N) have been operationally invaluable in supporting our Nation’s interests across the world. These two unique programs provide the essential elements needed to support and execute crisis response, global reach, and forward presence. The Marine Corps’ Prepositioning Programs enable the rapid deployment of Marine Air Ground Task Forces (MAGTFs) and/or augment individual Marine units forward deployed. These forces are uniquely capable of strengthening alliances, securing strategic access, and defeating hostile adversaries. MPF and MCPP-N are keystones in the Marine Corps’ capability for setting the conditions for national security.

*** RIGA, Latvia – Soldiers from the 3rd Infantry Division offload an M1A2 Abrams Main Battle Tank from the transportation vessel “Liberty Promise” March 9 at the Riga Universal Terminal docks. More than 100 pieces of equipment, including the tanks, M2A3 Bradley Fighting Vehicles and assorted military cargo, will move on to sites in other areas of Latvia as well as Estonia and Lithuania in support of Operation Atlantic Resolve.

WASHINGTON — Russian SU-24 fighter-bombers buzzed a U.S. Navy destroyer in international waters in the Black Sea late in May, just days after the Royal Air Force scrambled to intercept nuclear-capable Bear bombers near British airspace. These dangerous Russian games of chicken are now regular occurrences and come hard upon a Russian threat in March to aim nuclear missiles at Danish warships if Denmark joins NATO’s missile defense system.

As tensions between the West and Moscow sharpen over Ukraine, NATO countries have seen a dramatic spike in provocative actions that risk a harrowing accident or devastating miscalculation. A NATO-Russia military-to-military dialogue would reduce these risks — if President Vladimir Putin and the Kremlin allow it.

NATO has ratcheted down its political dialogue with Moscow in protest over Russia’s illegal seizure of Crimea and involvement in the conflict in eastern Ukraine. But the alliance should seek to engage Russia on a professional military level to minimize the danger of missteps or misunderstandings when their forces operate in close proximity or near each other’s territory. They would have good antecedents to draw on: a set of Cold War agreements whose titles clearly convey their purposes.