Watch Out America, Venezuela a Failed State

Venezuela Is About to Go Bust

Nagel/ForeignPolicy: Venezuela’s economy is facing a tsunami of bad news. The country is suffering from the world’s deepest recession, highest inflation rate, and highest credit risk — all problems aggravated by plunging oil prices. Despite all its troubles, though, until now Venezuela has kept making payments on its $100-billion-plus foreign debt.

That is about to end. In recent days a consensus has emerged among market analysts:

Venezuela will have to default. The only question is when.

Venezuela will have to default. The only question is when.

A Venezuela meltdown could rock financial markets, and people around the world will lose a lot of money. But we should all save our collective sympathy — both the government in Caracas and the investors who enabled it had it coming.

In the last few years, the Venezuelan government has been steadfast about staying in good graces with its lenders. It has paid arrears on its debt religiously, and has constantly asserted that it will continue paying.

But it has neglected to implement the reforms Venezuela would need to improve the fundamentals of its economy. Its commitment to socialist “populism” and the complicated internal dynamics within the governing coalition have paralyzed the government. It has repeatedly postponed important reforms like eliminating its absurd exchange rate controls (the country has at least four exchange rates) or raising the domestic price of gasoline (the cheapest in the world by far). Instead, the government has “adjusted” by shutting off imports, leaving store shelves all over the country barren.

This strategy now seems unsustainable. According to various estimates, in 2015 Venezuela imported about $32 billion worth of goods. This was a marked drop from the previous year. This year, given current oil prices and dwindling foreign reserves, if Venezuela were to pay off its obligations — at least $10 billion — and maintain government spending, it would have to import close to nothing. In a country that imports most of what it consumes, this would ensure mayhem. That is why all analysts predict default in the coming months.

The Economist has joined the chorus, saying that “the government has run out of dollars.” In the words of Harvard professor Ricardo Hausmann, this will be “the largest and messiest emerging market sovereign default since the Argentine crisis of 2001.”

One of the reasons the coming default will be so messy is the many instruments involved, all issued under widely varying conditions. Part of the stock of debt was issued by PDVSA, Venezuela’s state-owned oil company, which owns significant assets overseas (For example, Citgo is 100 percent owned by the Venezuelan government). Another part of the debt was issued by the national government directly, while another big chunk is owed to China, under secretive terms.

The Chinese issue looms large. China’s loans to Venezuela — close to about $18 billion, according to Barclay’s – consist of short-term financing payable via oil shipments. As the price of oil collapses, Venezuela needs to ship more oil to China in order to pay them back. Barclay’s estimates that right now this is close to 800,000 barrels per day, leaving little more than a million barrels per day Venezuela can sell for cash.

A default will send ripples beyond Wall Street. Many people have been buying high-risk, high-return Venezuelan debt for years — from pension funds in far-off countries to small banks in developing ones. Most stand to lose their shirts. Yet the signs that this was unsustainable were there for all to see.

For years, Venezuela has had a massive budget deficit, sustained only by exorbitant oil prices. For years, analysts have been warning that the Venezuelan government would rather chew nails that allow the private sector to grow. And yes, a lot of that borrowed money was used to help establish a narco-military kleptocracy.

It is impossible to untangle the ethical implications of all of this. Lending Venezuela money is what business ethics professors talk about when they question “winning at someone else’s expense.” Losing money from investing in Venezuela is akin to losing it from, say, funding a company that engages in morally reprehensible acts. (Insert the name of your favorite evil corporate villain here).

Investors in companies with “tainted profits” from, say, engaging in child labor or violating human rights should not get the world’s sympathy, nor should they be bailed out. Similarly, investors in Venezuelan debt have only their hubris to blame.

In a few months, once the rubble of the Bolivarian revolution is cleared, the discussion will turn to how Venezuela can be helped. It would be smart to remember that aid should come to the Venezuelan people first. As the scarcity of food and medicine grows,

Venezuela may become the first petro-state to face a humanitarian disaster.

Venezuela may become the first petro-state to face a humanitarian disaster.

If and when a responsible government in Caracas asks for foreign assistance, solving this urgent issue should be at the top of the agenda. Conditions on financial assistance should privilege the interests of Venezuelans caught in the debacle above the interests of angry hedge fun managers or international bankers.

In other words, the Venezuelan people should come first. The folks who enabled this catastrophe? They can wait.

 

Spooky Dude Behind Migrants and Benefits

The Open Society Foundations’ U.S. Programs is committed to building a vibrant, inclusive, and more just society in the United States. Through grant making, the Soros Justice Fellowships, and a special reserve fund used as crises and unexpected opportunities arise, U.S. Programs seeks to promote full participation in the nation’s civic, political, and economic life—particularly for communities that are historically marginalized and vulnerable—and to ensure that the core institutions of civil society are effective and accountable to the public.

The work of U.S. Programs is organized around four central goals: a more inclusive and accountable American democracy; a fair criminal justice system; full political, economic, and civic participation of communities of color and immigrants; and equitable economic growth.

Among its priorities:

Justice

Working to end mass incarceration; making police departments more accountable to the communities they serve; challenging the death penalty; and replacing youth justice policies that stigmatize and suppress with those that safeguard the rights of children.

Drug Policy

Promoting policies that address drug use—and the health, mental health, and social needs it creates—within the context of communities rather than the justice system, and working to ensure access to comprehensive treatment.

Equality

Promoting fairness and equality for all people in the United States by removing barriers to full participation in economic, social, and civic life for marginalized communities; seeking to reduce the racial wealth gap and reform harsh school discipline policies that disproportionately impact children of color; working to improve life outcomes for boys and men of color; and changing the racial narrative in this country.

Democracy

Supporting high-quality journalism to help hold powerful institutions accountable; protecting the free flow of information through an internet accessible to all; reducing the undue influence of money in politics; expanding electoral participation and combat voter suppression; and advancing reforms safeguarding the independence of state courts.

Economic Advancement

Working to promote economic opportunity for all Americans, reduce income equality, and advance fair housing and lending policies.

National Security & Human Rights

Working to promote the rule of law, defend civil liberties and human rights, and combat Islamophobia in the face of overbroad or discriminatory U.S. counterterrorism policies and practices.

Philanthropy of Place

Testing ideas at the state and local level through our sole field office, the Open Society Institute–Baltimore, which focuses on drug addiction, over-reliance on incarceration, and obstacles that prevent youth from succeeding inside and out of the classroom, as well as through the Open Places Initiative, which promotes equality and improved civic participation in Buffalo, San Diego, and Puerto Rico.

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Countless pages here on who he gives grant money to.

Governance and Accountability
Through empowerment, policy change, and legal action, we target reforms that meaningfully improve the working and living conditions of migrants.

The International Migration Initiative seeks to address exploitation, discrimination and violence against migrants at every stage of their migration journey. Specifically, the initiative aims to increase protections for migrants in the Asia/Middle East and the Central America/Mexico corridors while improving policymaking and the governance of international migration.

Two unique aspects of the initiative’s approach amplify its impact: First, our focus on migration corridors means the initiative is active in both countries of origin and destination, and thus targets every stage of the migration journey. Second, we bridge advocacy and policy by drawing on the experience of grassroots organizations, while engaging with policymaker and political leaders. Through empowerment, policy change, and legal action, we target reforms that can meaningfully improve the working and living conditions of migrants.

The International Migration Initiative’s main areas of work are built around increasing protections for migrants and improving migration policymaking and the governance of international migration. Within these strategic priority areas, the initiative targets three overarching goals:

  • Deterring rights violations and increasing access to justice: The International Migration Initiative aims to demonstrably improve the working and living conditions of migrants by bringing about a measurable decline in acts of violence against them and reducing the incidence of forced labor. This requires the development of a broader, stronger network of organizations and practitioners engaged in advocacy. We are pursuing initiatives to increase access to justice by building capacity among legal practitioners so they can overcome legal and jurisdictional hurdles impeding migrants’ access to redress.
  • Empowering migrants: The initiative seeks to strengthen the ability of migrants to assert and defend their rights, primarily by increasing access to information. This involves improving the quality, coverage, and effectiveness of training and orientation seminars prior to departure and upon arrival in countries of employment. We also aim to create an enabling environment in which migrants can mobilize and make their voices heard through grassroots organizing, the development of associations and informal support networks, and the creation of migrant-run, community-based media.
  • Enhancing regional policymaking and dialogue: The initiative advances policy reform and the promulgation of best practices by enabling dialogue among key stakeholders, including among actors who might not otherwise come together. We also aim to build the evidence base necessary to inform these conversations and to deepen networks among policymakers, as well as between the state and civil society. In the long term, we aim to promote more inclusive, tolerant communities and a better-informed public in order to combat xenophobia and discrimination.

Hat tip to Michael

Putin’s Hidden Agents in ISIS

It is about a global power-ranking. When Russia and Iran team up to destabilized Syria, refugees, millions of them flee. Destination for the refugees, The West. The West is forced to accommodate millions, pay for them, house them, educated them and provide medical care, breaking the financial structure. How come Russia has not taken any refugees or Iran or any country in the Middle East? They already know. Now the challenge for the West is to have aggressive leadership by the United States, not until 2017 will that be realized or will it?

The KGB/FSB has an agenda, it is well underway…..As you read below, submit your thoughts.

NewAmerican: On December 6, 2015, in a televised interview with the Ukrainian news program ТСН Тиждень (TSN Tyzhden, Ukrainian for TSN Weekly), a former FSB officer admitted that Russia is behind ISIS while ostensibly opposing it.

Former FSB officer codenamed “Yevgeniy” (shown, back toward camera) revealed that Russia’s FSB security services was, at the very least, complicit in the Paris attacks carried out by ISIS, and most shockingly that the FSB was involved in the creation of ISIS, which it influences through its agents who staff it as well as other related Islamic terrorist organizations.

The FSB, which stands for Federal Security Service in Russian, was organized in 1995 as the successor to the Soviet KGB. After the KGB was officially dissolved in 1991, it was briefly renamed the AFB (Agency for Federal Security), which was reorganized that same year as the MB (Ministry of Security). In 1993, the MB became the FSK (Federal Counter-Intelligence Service), which was again reorganized into its present form and name as the FSB on April 12, 1995.

Yevgeniy reportedly specialized in both terrorist organizations and counter-terrorism activities within the FSB. Defecting for personal reasons rather than ideological, Yevgeniy told TSN’s Andriy Tsaplienko that among the vast number of refugees entering Europe were certain Russian operatives whose task it was to infiltrate the Muslim communities. Financed by the FSB, these undercover Muslim operatives would rise to prominence within their respective communities, in turn providing the Kremlin with valuable intelligence of Muslim activates in Europe and allowing Moscow to exert influence over the communities. More here.

****   Russia's Hidden Influence Agents Within ISIS (Pt. 1)

WikiLeaks Forum:
Part one of this series looked at the historical manipulation of Islamists by Russian security services. Jihadists were armed and trained to fight by the FSB and GRU in places like Georgia and Nargono-Karabakh. Domestically, jihadists were infiltrated by the FSB into nationalist separatist movements in Dagestan and Chechnya, effectively painting those movements as religious radicals rather than freedom fighters battling an oppressive regime in Moscow.
Related Posts

Part two looked at a few specific examples of Chechen and Georgian jihadists who are probably witting or unwitting FSB assets, and how they have become power players within ISIS. The reasons for this are twofold and represent a re-creation of the same strategy used in Chechnya. Chechen jihadists helped to re-contextualize the Syrian rebels, Islamizing them in the world’s eyes. By doing this, they also acted as a spoiler force, preventing the CIA from being able to train and arm many Syrian rebels because of the presence of so many jihadi groups, a draw for many of the moderates in the region.
This article will take a look at ISIS propaganda, or what the world’s intelligence services would call information operations or psychological operations, and ask the question as to whether there is a hidden hand behind these propaganda videos.

Wahhabywood

The allure that ISIS holds for young jihadis and the fear they inspire in the rest of the world stems not from the actual combat prowess of the organization, but from its image. That image is carefully crafted, and much has been written about the high production values of the propaganda ISIS puts out. Their videos display dehumanized Islamic warriors in black masks, fully devoted to the cause of creating an Islamic caliphate. They never sleep, they never tire, they will conquer the entire world, bathing it in the blood of infidels and installing some kind of Muslim mojo hocus pocus 7th-century sharia law, or so we are told.

ISIS represents the darkest nightmares the Western world has about the Middle East, Arabs, and Muslims. The Islamic State represents a temporally displaced land of barbarians that has no place in the modern world. These nightmares are carefully cultivated by ISIS in slick propaganda films that show a deep awareness of liberal Western cultural values; the images and actions in these films are often specifically targeting Western audiences. ISIS’s reputation in the Middle East, much of it gained by way of their propaganda, is so profound, this author has been told that when an ISIS convoy rolls up to a village, all they need to do is blink their headlights and the locals will completely abandon their homes without a fight.

Their propaganda is good. Maybe too good.

ISIS propaganda targets Western liberal sensitivities in a very deliberate manner. There are many ways they do this, but four stand out quite clearly.

1. Mass executions, especially of Christians.
ISIS thrives on the blood bath of mass executions. No one is spared. Shia Muslims, children, ordinary civilians, so-called infidels and apostates, suspected traitors, Kurds, it hardly matters to ISIS. They are also known to carry out summary beheadings when they arrive in a village of the first person they can get their hands on just to prove that they are now in charge. However, it is the deliberate mass murder of Christians in Syria, Iraq, and Libya that is clearly designed to antagonize Western populations.

2. Sexual slavery
Openly flaunting sexual slavery is another propaganda point for ISIS, one that intentionally provokes Western values, but arguably human values across the world. Murder is one thing, but holding slave auctions in Mosul and selling off 13-year-old Yezidi girls or handing them out as gifts to ISIS fighters is particularly vile. ISIS is quite proud of this and brags about it in videos and public statements; their brand of sharia law also openly endorses it. This savage behavior deliberately provokes Westerners sensitive to gender issues.

3. Destruction of antiquities
The truth is that many Americans could care less about what happens in the Middle East. Arabs have been killing each other for hundreds of years and will continue to do so unabated. But even some of the most jaded people in the West get outraged at the destruction of antiquities. Following in the footsteps of the Taliban, who destroyed ancient Buddha statues, ISIS knows that their destruction of ancient Roman and Assyrian artifacts and structure will invite the ire of the world.

4. Targeting homosexuals
ISIS beheads and murders people at whim, but full-page spreads of professionally done photographs capturing ISIS tossing homosexual men from rooftops is something else entirely. Gay rights is an important issue in the West, and ISIS not only murders gays but makes sure that the entire world knows about it by recording these executions.
It is important to remember that none of these propaganda videos or pictures are released without permission from ISIS. We see what ISIS wants us to see. I am not cherry-picking the worst behavior of ISIS to present to our readers, I’m simply pointing out the images they want foremost in our minds. ISIS is baiting the Western world. Their end goal is also stated in the open: They want a coalition of Western nations to attack them.

Reflexive control

Reflexive control is a theory of psychological warfare designed to control enemy perceptions and has been studied and developed by Russian intelligence services for over 40 years. “Reflexive control is defined as a means of conveying to a partner or an opponent specially prepared information to incline him to voluntarily make the predetermined decision desired by the initiator of the action,” writes Timothy Thomas. Reflexive control involves studying the opposition’s decision-making process, then introducing socially, strategically, or politically loaded information into that process in order to influence it in a direction favorable to your objectives.

Russian defense analysts perceive America’s 1980s “Star Wars” or SDI program as a perfect example of reflexive control. According to the Russians, America knew that the USSR would respond to match horizontal and vertical proliferation of weapons, as well as the countermeasures to stop them. Therefore, America instituted the Star Wars program to trick the Soviet Union into investing in novel new weapons programs it could not afford, which then led to the crash of the Soviet economy. By doing this, we “compelled the enemy to act according to a plan favorable to the U.S.” (Thomas, 239).

By definition, reflexive control occurs when the controlling organ conveys (to the objective system) motives and reasons that cause it to reach the desired decision, the nature of which is maintained in strict secrecy. The decision itself must be made independently. A “reflex” itself involves the specific process of imitating the enemy’s reasoning or imitating the enemy’s possible behavior and causes him to make a decision unfavorable to himself (Thomas, 241).

In other words, once you understand how the enemy thinks, you then feed him information you know will cause him to reach an independent decision favoring your own strategy. In essence, you are using deception to trick the enemy, hoping that they will blunder into something that they wouldn’t attempt if they knew that they were being presented with loaded, and potentially false, information. While we are focused on Russian stratagems here, it may also be useful to reflect back of the deception tactics used by China as well, many of them derived from the period of the Warring States.

ISIS feeds the West loaded information

There is no proof that Russian intelligence has a hand in ISIS information/propaganda operations. However, considering what we have discussed thus far, this scenario should be taken seriously. ISIS is actively gaming the psychological makeup of Western audiences in order to provoke the United States and allied nations into a full-blown military confrontation with the Islamic State in Syria and Iraq. If the hypothesis about Russian influence agents in ISIS is correct, and if they are participating in ISIS propaganda efforts, then we should ask why Russia would be interested in doing this to begin with.

The answer is fairly straightforward. Keeping America bogged down and preoccupied in the Middle East is of massive benefit to the Russian Federation. By goading America into another war in the Middle East, Russia has more opportunity to engage in military aggression in Ukraine, Dagestan, Chechnya, Georgia, Moldova, Akbazia, Nagorno-Karabakh, Uzbekistan, Tajikistan, Turkmenistan, and on and on throughout Russia’s near abroad. For sure, there would also be some more specific tactical and strategic goals, but in the general sense, the Gulf War III would help keep America off Russia’s back.

ISIS, and perhaps Russian intelligence, understands America’s future rationalizations for war very well. In the past we could justify war as being battles against communism or fascism for the preservation of the American way of life. Before that, more jingoistic narratives about manifest destiny were brought into play. But these justifications for war, racial or nationalistic, will have no place in future liberal Western nations. Instead wars will be justified as fights for gay rights, women’s rights, and other equality issues. One hypothetical example: Americans will be told that we have to invade Iran because gays are stoned to death or beheaded by the Iranian regime.

The Islamic State knows that there is no better way to terrify and incite Americans than to use mass executions, the murder of Christians, the use of sex slaves, the destruction of ancient relics, and the killing of homosexuals. ISIS is at war with Western consciousness, and it is a very deliberate effort.

Basically, we see Daesh, we see the Islamic State — especially in the West — we see it from the surface, which is the mix of their propaganda; their version of what they really do. You see the pictures of actual killings, slaughtering, beheadings, blowing up things, mixed with their propaganda, or mixed with the things which are not true. They are controlling whatever comes out of their area. For example, if you take the pictures and the images we have of the Islamic State, 99% are approved by their PR department. They give us pictures of all these lined-up Humvees, guys with guns, perfect afternoon light set in the desert. They have accepted the presence of a few photographers who are in the area, from AFP, Reuters, AP; the big agencies, no matter if they would be considered Zionists, masons, imperialists, infidel agencies — they are in their area and they had to swear allegiance and in most cases the office is directly controlling all the images before they are permitted to submit them or it’s made clear to them. They sort of tell them, ‘if you do something wrong which harms our reputation, you know what will happen to you. We know you; we will find you.’ So the images that are transferred through the agencies, all the big agencies, are images that have been approved by Daesh. And Daesh invites the photographers to their events.—Christoph Reuters

None of this proves that this effort is being led, sponsored by, or covertly influenced by Russian intelligence assets. ISIS seems quite capable of hiring contractors with technical expertise, from oil industry engineers to computer hackers. Also, it is not as hard to make professional-looking films as it was 10 or 20 years ago. A kid with a decent digital camera and a laptop with film-editing software can do a pretty good job at filmmaking. Perhaps ISIS has developed all of this methodology on their own, but I am far from the first person to be surprised by ISIS’s slick Madison Avenue-worthy propaganda.

There are far more questions than answers here. For example, what about the Baath party leadership cells that actually run ISIS? These old dogs are not suicidal by any means and are actually quite cunning. A coalition of Western states spearheading a third Gulf War seems like it would be counterproductive to their goals. Yet, it would be impossible to believe that a few influence agents within ISIS have completely hijacked their propaganda efforts away from the Baathists. Maybe they are getting something in return? One can only speculate. While the first two parts of this article give some solid evidence for the reader to ponder, part three is an extrapolation on the first two articles. We don’t know if Russian intelligence has a hand in ISIS propaganda.

El Chapo’s America: Flooded with Heroin-Fentanyl

The DEA operation, called “Project Cassandra,” is meant to disrupt and dismantle Hezbollah’s global network that supplies drugs to the U.S. and Europe as well as cut into the terror organization’s ability to fund its activities through drug trafficking.

In the investigation, authorities uncovered a network of money couriers who collect and transport millions of euros in drug proceeds from Europe to the Middle East. The currency is then paid in Colombia to drug traffickers using the Hawala disbursement system, which makes it difficult to track. ***

Last spring, Brazil’s Civil Police arrested Hamzi Ahmad Barakat in the city of Curitiba under allegations that he had connections to a network of front companies that fleeced Lebanese immigrants who had recently moved to Brazil.

Barakat, who allegedly has ties to the infamous Triple Frontier region, is listed in the United States as a member of Hezbollah and is suspected of trafficking arms, drugs, explosives and counterfeit bills.

“He was preying on his own countrymen, using their identities to create companies to carry out schemes,” said Cassiano Aufiero, the police investigator in charge of the case.

Aufiero added that while he knew of Barakat’s purported ties to the Islamic militant group, he said that he was under arrest for different matters, including embezzlement and the creation of false documents.

Barakat’s arrest shed more light on the Triple Border region, which has become a hotspot for smugglers and drawn the attention of the U.S., Israel and governments throughout South America.

The region has drawn a number of immigrants for the Middle East, particularly from Lebanon, and is believed to be one of Hezbollah’s major areas of operation outside of the Islamic world, due to its seclusion, loose borders, rampant political corruption and weak judicial system. Brazil has one of the largest Lebanese population’s outside of Lebanon with at least 7 million people from that country residing there and some estimates claiming closer to 13 million.

In 2004, Barakat’s brother, Assad Ahmad Barakat, was named by the Treasury Department as one of Hezbollah’s “most prominent and influential members” and was believed to have used an electronics wholesale store in the Triple Frontier as a cover for raising funds for Hezbollah. The Brazilian police arrested him in 2002 and deported him to Paraguay, where he went to prison for tax evasion.

The Department of Justice National Drug Threat Assessment report.

Fentanyl: drug 50 times more potent than heroin ravages New Hampshire

Of 69 fatal overdose victims last year, 68% had taken the synthetic opioid, which Mexican cartels have learned to make and smuggle to interstate highways. The drug ‘is what is killing our citizens,’ says Manchester’s police chief

Guardian: to the Drug Enforcement Administration, fentanyl is a synthetic opioid 100 times more powerful than morphine, and 30-50 times more powerful than heroin.

“Fentanyl is what is killing our citizens,” said Manchester’s chief of police, Nick Willard, in testimony before Congress last week.

In 2013, the city of Manchester had 14 fatal overdoses, one of which (7%) involved a victim with fentanyl in their system, according to Willard. In 2015, 69 people fatally overdosed, 68% of whom had taken fentanyl. The state statistics are no more cheery. Officials at the office of the chief medical examiner in New Hampshire say they have yet to receive testing results from 36 suspected overdoses, but they’ve counted 399 fatal overdose victims so far, more than two-thirds of whom died with fentanyl in their system.

“It’s not like Mario Batali,” said Willard from his office in Manchester, comparing heroin dealers cutting their supply with the famed chef. “These guys are just throwing it in a mixer. You could get a bag that’s perfect and no one is going to die from it. You could also get a bag [that’s] straight fentanyl and that would kill you.”

Willard said that during a recent raid in Manchester, he found a dealer mixing fentanyl with whey protein. In another sting that led to a seizure in Lawrence, Massachusetts, the dealer was allegedly mixing heroin and fentanyl in a kitchen blender.

For the most part, said Willard, the story of opiate use in Manchester follows the same patterns as the rest of the country. The crisis was ushered in by the rise of prescription painkillers like OxyContin. Addicts looking for a cheaper high frequently turned to the more dangerous, yet significantly cheaper, heroin.

The turning point, he says, happened sometime after 2010, when Purdue Pharma altered the medication to make it more difficult to tamper with and get high. Suppliers in Mexico were quick to keep up with the burgeoning market, and addicts in Manchester, which sits near Interstate 93, Route 3, Route 81, and Route 9, had no problem tapping into the supply. More here.

Chicago:

“What Al Capone was to beer and whiskey, Guzmán is to narcotics,” Art Bilek, the commission’s executive vice president, said at the time. Except, Bilek added, Guzmán “is clearly more dangerous than Al Capone was at his height.” (Zambada is plenty dangerous, too: Prosecutors say he commanded logistics and security for the cartel, including assassinations. He is suspected in a number of slayings, including the murders of government officials.)

The cartel’s scope is staggering. About half of the estimated $65 billion worth of illegal cocaine, heroin, and other narcotics that Americans buy each year enters the United States via Mexico, according to law enforcement experts (though the drugs often originate in South or Central America). More than half of that is believed to be supplied by Sinaloa. Drug enforcement experts estimate, conservatively, that the cartel’s annual revenues exceed $3 billion: more than those of the Chicago Mercantile Exchange Group.

In Chicago, the cartel has a near monopoly. “I’d say 70 to 80 percent of the narcotics here are controlled by Sinaloa and Chapo Guzmán,” says Jack Riley, director of the DEA’s Chicago office. “Virtually all of our major investigations at some point lead back to other investigations tied to Sinaloa.”

In August 2009, five months after Zambada’s capture, a federal grand jury in Chicago indicted him and 45 others tied to a Sinaloa-led drug ring in the city. Patrick Fitzgerald, the U.S. attorney at the time, called the indictments “the most significant drug importation conspiracies ever charged in Chicago,” claiming that the cartel imported and distributed nearly $6 billion worth of illegal narcotics mostly to the Chicago area between 1990 and 2008.

Terror Ties Vetting Prison Chaplains

Federal Prisons Using Groups With Terror Ties To Vet Islamic Chaplains

DailyCaller: As Fox News and other news organizations have reported, America’s federal prisons are a “breeding ground” for potential Islamic terrorists — and have been so for years. Despite this disturbing trend, the Obama administration has enlisted Islamic organizations with known terror ties to review and endorse chaplains to work in federal prisons.

In response to an inquiry from Republican Iowa Sen. Chuck Grassley, the Federal Bureau of Prisons provided a list of Islamic Chaplaincy Endorsers, which Grassley has since posted online. Included on the list is the Islamic Society of North America (ISNA), which has long-standing ties with the Muslim Brotherhood and was named by the Justice Department as an unindicted co-conspirator in the Holy Land Foundation terror financing case.

In an open letter to the director of the Bureau of Prisons Thomas Kane, Grassley pointed out that “A 2009 federal district court ruling concluded that ample evidence exists showing the Islamic Society of North America’s ties to Hamas, which is designated by the State Department as a terrorist organization.”

Writing about ISNA, Grassley noted: “It appears, therefore, that the BOP is relying on an organization with associations to terrorist organizations and one that the DOJ named as an unindicted co-conspirator in a terrorist financing case to confirm credentials of those attempting to provide religious services to federal inmates. If accurate, this information is deeply troubling.”

And ISNA isn’t even the only organization with radical ties on the list of chaplaincy endorsers. The Islamic Education Center, located in Walnut, Calif., also has ties to terror organizations through its founder, Dr. Ahmad H. Sakr.

In addition to founding the Islamic Education Center, Sakr — originally from Lebanon — was a founding member of both ISNA and the World Council of Mosques, the latter of which has “a long history of providing financial support to terrorist groups,” according to the Anti-Defamation League. Sakr, who passed away just a few months ago, is listed as the contact person on the BOP’s list of chaplaincy endorsers.

“It is imperative that the BOP take every measure possible to ensure the safety of its personnel within federal prisons and take all reasonable measures to ensure that Islamic extremism is stopped at the gates of each prison,” Grassley noted in his letter to Director Kane. “Currently, it is not clear whether the BOP is doing so.”

As a result of the apparent shortcomings, Grassley is asking the Bureau of Prisons to provide further information about “the process by which someone becomes a religious endorsing organization,” in addition to an explanation for why the BOP chose ISNA as a chaplaincy endorser.
Grassley is also seeking the number of currently employed religious contractors from the 2014-15 year with still incomplete background checks.

According to a 2013 article from the Huffington Post, anywhere between 35,000-40,000 inmates convert to Islam every year, presumably with the assistance of the chaplains provided by the prisons. In a 2014 op-ed in The Daily Caller, author Joy Brighton argued that the nation’s prisons have been churning out thousands of radicalized inmates every year. Brighton’s calls were echoed in a Fox News article just last month that cited experts on the subject who called federal prisons a “breeding ground” for potential terrorists.

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In 2003 for the Inspector General:  On March 10, 2003, Senator Charles Schumer wrote a letter to the OIG requesting that we examine the BOP’s process for selecting Muslim chaplains based on concerns that the BOP relies solely on two Islamic groups to endorse its Muslim chaplains, the Islamic Society of North America (ISNA) and the Graduate School of Islamic and Social Sciences (GSISS). Schumer noted that the ISNA and the GSISS allegedly are connected to terrorism and promote Wahhabism, which some consider an exclusionary and extreme form of Islam. In addition to Senator Schumer, Senators Jon Kyl and Dianne Feinstein expressed similar concerns and asked the OIG to examine these issues as they relate to the BOP.

In response to these requests, we reviewed the recruitment, endorsement, selection, and supervision of Muslim chaplains and other Muslim religious services providers who work with BOP inmates. We also examined the roles the ISNA, the GSISS, and other organizations have in the endorsement of chaplain candidates.

During this review, the OIG interviewed the BOP’s ten Muslim chaplains, the BOP detailee to the Federal Bureau of Investigation’s (FBI) National Joint Terrorism Task Force (NJTTF), and officials at BOP Headquarters who are responsible for religious services providers, including the Chief of the Chaplaincy Services Branch and the Senior Deputy Assistant Director (SDAD) of the Correctional Programs Division. We also interviewed FBI counterterrorism officials and representatives of the U.S. Commission on International Religious Freedom at the U.S. Department of State (Commission). Full report here.

From GatesStone: The number of Muslim prisoners in Britain has doubled in the last decade to nearly 12,000. Many of these prisoners, the media reports, are at “significant risk” of radicalization. The solution, authorities claim, lies with the Islamic prison chaplains. Or are they, in fact, part of the problem? Where do these chaplains come from? What sort of Islam are they espousing?

On May 12, the BBC broadcast its own investigation into the radicalization of prison inmates. The documentary featured interviews with former inmates such as Michael Coe, who “went into prison as a gangster and left as Mikaeel Ibrahim, a convert to Islam.” Coe attributes his conversion to his friendship in jail with al-Qaeda terrorist Dhiren Barot, jailed for life by a British court in 2004 for plotting to blow up limousines by packing them with gas canisters. Full article here.

For more facts on the matter: Why Extremist Chaplains Have Access to U.S. Prisons