Category Archives: Treasury

Snapshot of the Threats Against America

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Today on CBS: “Thousands of law enforcement officers in New York will spend July 4 trying to prevent a terror attack that could come from supporters of the Islamic State of Iraq and Syria (ISIS). NYPD Deputy Commissioner of Intelligence and Counterterrorism John Miller called it one of their biggest operations ever.

“I think if you look at history, they’re looking at big events, they’re looking at symbolic dates. They’re looking at military, police, intelligence,” Miller said Thursday on “CBS This Morning.”

CBS News senior security contributor Mike Morell said Monday the FBI and Department of Homeland Security’s warning of a potential July 4 attack is “nothing routine.” ”

This document is produced by the Majority Staff of the House Homeland Security Committee.

TOP TAKEAWAYS

• ISIS is dead set on attacking America and its allies. With the recent attacks in France and against tourists in Tunisia, ISIS has now been linked to 47 terrorist plots or attacks against the West, including 11 inside the United States. The rate of ISIS terror plots against the West has more than doubled in 2015 (19 plots in all of 2014; 28 already this year).

• The number of post-9/11 jihadi terror plots in the United States has surged. There have been more U.S.-based terror plots or attacks in the first half of 2015 (a total of 24) than in any full year since 9/11. Overall, homegrown jihadi plots have tripled in just the past five years (from 36 plots/attacks in June 2010 to 118 today).

• Islamist terrorists are getting better at recruiting Americans. Ten U.S.-based ISIS supporters have been arrested in the last month, bringing the total to 55 ISIS-inspired individuals arrested and charged in America (not including two who have been charged in absentia). ISIS followers have now been arrested in at least 19 states.

• Foreign fighters continue to pour into terrorist safe havens overseas—and represent a threat to the United States and its allies. More than 4,000 Westerners and 200+ Americans have traveled or attempted to travel to join Islamist terrorists in Syria, figures which have nearly doubled in the past year. Around 40 have already returned to the United States, according to authorities, one of which was arrested plotting a terrorist attack in Ohio.

• Islamist terror safe havens and franchises are proliferating rapidly, giving groups like ISIS and al Qaeda a base for operation and further expansion. Libya in particular has deteriorated quickly becoming a training ground for terror recruits. ISIS now has a direct presence, affiliates, or groups pledging support in at least 18 countries or territories, including Afghanistan, Algeria, Egypt, India, Indonesia, Iraq, Jordan, Libya, Lebanon, Nigeria, the Palestinian territories (Gaza), Pakistan, Philippines, Russia (North Caucasus region), Sudan, Syria, Tunisia, and Yemen.

TERROR PLOTS AGAINST THE WEST

ISIS is not a regional phenomenon but a global menace whose targeting against the West has surged in 2015.

By the numbers

• Since early 2014, there have been 47 planned or executed ISIS-linked terror plots against Western targets, including 11 inside in the United States.1

• There have been more ISIS-linked plots against Western targets in the first half of this year (28) than in all of 2014 (19).2

Recent Developments

• June 27: ISIS recruiter and computer hacker Junaid Hussain attempted to enlist a trainee to target the Armed Forces Day parade in London, England, in a bombing attack. Hussain is suspected to have been in social media contact with at least one of the perpetrators of the May 2015 attack on a Muhammad cartoon contest in Garland, Texas.

• June 26: Yassine Salhi, 35, decapitated his employer and attempted to blow up an American chemical company’s factory near Lyon, France, before being subdued. He had previously been under French authorities’ scrutiny over his jihadist ties. Salhi maintained regular contact with and sent pictures of the decapitated body to a Syria-based French citizen reportedly fighting for and in contact with ISIS leaders.

• June 26: Seifeddine Rezgui, 23, attacked a public beach and luxury resort complex frequented by Western tourists in Sousse, Tunisia, killing 39 individuals. He was eventually shot by security 1 forces. ISIS claimed responsibility for the attack. Tunisian officials believe Rezgui attended the same terror training camp in Libya as the attackers who targeted the National Bardo Museum in Tunis in March. This figure is based on open-source data compiled by the Majority Staff of the Homeland Security Committee.

2 This figure is based on open-source data compiled by the Majority Staff of the Homeland Security Committee.

• June 23: ISIS spokesman Abu Muhammad al Adnani issued an aggressive call urging followers around the world to launch terror attacks and turn the month of Ramadan (June 17 – July 17) into a “calamity for the infidels…Shi’ites and apostate Muslims.” Adnani proclaimed that martyrdom during Ramadan would bring “tenfold” rewards to jihadists.

• June 19: Justin Nolan, a 19-year-old from Morganton, North Carolina, was arrested for plotting assassinations and a large terror attack on behalf of ISIS using a semi-automatic AR-15 rifle. Nolan expressed his support for ISIS, acquired a gun silencer, desired to kill “as many as 1,000 people,” and planned to send footage of an attack to ISIS.

• June 17: Fareed Mumuni was arrested after attempting to stab FBI agents searching his home in connection with an investigation stemming from the arrest of Munther Saleh. Authorities believe Mumuni conspired with Saleh to construct a pressure-cooker bomb, similar to those used in the Boston Marathon bombing in 2013. Mumuni told federal investigators that he pledged allegiance to ISIS, planned to travel to ISIS-controlled territories to join the group, and intended to attack law enforcement officers if his efforts to join ISIS failed.

• June 16: Abdul Malik Abdul Kareem was indicted for providing weapons to Elton Simpson and Nadir Soofi for use in May 2015 Garland, Texas attack. Kareem also traveled with Simpson and Soofi to a remote desert area near Phoenix to practice shooting. He was charged with conspiracy, making false statements and interstate transportation of firearms with intent to commit a felony. The indictment noted that the three men “and others known and unknown to the grand jury” plotted the attack.

• June 13: Munther Omar Saleh, a 20-year-old college student, was arrested after he and an unidentified co-conspirator ran towards an undercover law enforcement car near the Whitestone Bridge in New York. Saleh came under scrutiny after a Port Authority police officer saw him walking near the George Washington Bridge in New Jersey this past March. Saleh conducted online research on preparing explosive devices— including research on pressure cooker bombs and other weaponry— in the New York metropolitan area on behalf of ISIS. Saleh was active on Twitter and tweeted his concern that al Qaeda was becoming “too moderate” in 2014. He also espoused pro-ISIS sympathies online and endorsed the Charlie Hebdo massacre in France and the Garland, Texas shooting attack.

• June 2: Ussamah Abdullah Rahim of Roslindale, Massachusetts, was initially planning to behead an individual at some point in the future but advanced the timing of his plot and changed the target to law enforcement personnel. Rahim attacked Boston police officers and FBI agents who were attempting to question him before being neutralized. He was radicalized by ISIS and had been on authorities’ radar for several years. His nephew, David Wright, conspired with Rahim and was initially arrested for obstructing the investigation. A third associate, Nicholas Rovinski from Warwick, Rhode Island, also in contact with ISIS recruiters overseas, was arrested June 11th and charged as a co-conspirator.

HOMEGROWN ISLAMIST EXTREMISM

Homegrown terror has reached unprecedented levels as extremist groups work to infiltrate the United States and remotely recruit and radicalize Americans.

By the numbers

• Since September 11, 2001, there have been 118 U.S. terrorist cases involving homegrown violent jihadists. Over 80 percent of these cases, which include plotted attacks and attempts to join foreign terrorist organizations, have occurred or been discovered since 2009.3

• Authorities have arrested or charged at least 44 individuals in the United States this year – 57 since

2014 – in ISIS-related cases. The cases involve individuals: plotting attacks; attempting to travel to Syria; sending money, equipment and weapons to terrorists; falsifying statements to federal authorities; and failing to report a felony.4

• FBI Director James Comey has said authorities have hundreds of open investigations of potential ISIS-inspired extremists that cover all 56 of the bureau’s field offices in all 50 states. He stated there may be hundreds or thousands of Americans who are taking in recruitment propaganda over social media applications: “It’s like the devil sitting on their shoulders, saying ‘kill, kill, kill.’”

Recent Developments

• Ten ISIS supporters were arrested in the United States in June, including individuals listed in the previous section tied to ISIS-linked plots or attacks against the West, including David Wright (MA),

Nicholas Rovinski (RI), Abdul Malik Abdul Kareem (AZ), Akmal Zakirov (NY), Munther Omar Saleh (NY), and Fareed Mumuni (NY). Other arrestees include:

• June 29: Alaa Saadeh, a 23-year-old from West New York, New Jersey, was arrested in connection with his involvement with an ISIS-supporting cell in New York and New Jersey. Saadeh intended to travel to join ISIS and previously assisted his brother in going overseas for the same purpose.

• June 19: Amir Said Abdul Rahman al Ghazi (previously Robert McCollum), a 38-year-old from Sheffield Lake, Ohio, was arrested after pledging support to ISIS, attempting to persuade individuals to join ISIS, expressing a desire to launch terror attacks, attempting to purchase an AK-47, and selling marijuana. Ghazi expressed his radical views through social media tools, including Facebook,

Twitter, and Google+.

• June 18: Samuel Rahamin Topaz, a resident of Fort Lee, New Jersey was arrested for his intent to travel abroad to join ISIS in Syria and for providing material support to the terror group. Topaz was a friend and coconspirator of Munther Saleh, arrested June 13. The two watched ISIS propaganda 3 This figure is based on open-source data compiled by the Congressional Research Service and the Majority Staff of the Homeland Security Committee. 4 This figure is based on open-source data compiled by the Majority Staff of the Homeland Security Committee. videos online depicting beheadings and discussed their plans to fight with ISIS by transiting different countries to ISIS-controlled territory in Syria.

• June 11: Ali Shukri Amin, 17, of Manassas, Virginia, pleaded guilty to charges of conspiring to provide material support to ISIS after facilitating the travel of Reza Niknejad to Syria to join the group in January. Amin’s Twitter account, which at one time counted more than 4,000 followers, provided advice and encouragement to ISIS and its supporters, including instructions on how to use virtual currency Bitcoin to raise funds for the terror group.

FOREIGN FIGHTERS

Jihadists are flocking to overseas battlefields unabated, acquiring terror connections and capabilities and representing a near-term threat to their home countries, including the United States.

By the numbers

• More than 22,000 fighters from 100 countries have traveled to Syria and Iraq to join extremists—the largest convergence of Islamist terrorists in world history. The number of foreign fighters who have traveled to battlefields globally exceeds 25,000.

• Approximately 4,000 Western fighters have traveled to Syria and Iraq.5

• An estimated 550 Western women have traveled to the conflict zone.

• More than 200 Americans are estimated to have traveled – or attempted to travel – to Syria to fight.

This figure is up 33 percent from the beginning of 2015.

• Around 40 American fighters who traveled to Syria have returned to the United States as of March 2015.

• In addition to fighters joining Sunni extremist groups like ISIS and Jabhat al Nusrah in Syria, an estimated 5,000-7,000 Lebanese Hezbollah members and other Shi’a militants are fighting alongside the Bashar al Assad regime.

• A senior State Department official said almost all foreign fighters are still entering Syria through Turkey.

• France continues to be the top European source for fighters joining extremists in Syria (~1,200).

French authorities estimate that nearly 500 French fighters are currently in Syria and Iraq. The top overall source for foreign fighters is Tunisia (~ 3,000).

FOREIGN JIHADIST NETWORKS & SAFE HAVENS

5

National Counterterrorism Center Deputy Director John Mulligan, testimony before the House Homeland Security

Committee, June 3, 2015.

Islamist terror groups are carving our greater sanctuary across the Middle East. ISIS is accelerating its global expansion while al Qaeda deepens its roots in the region.

By the numbers

• ISIS now has a direct presence, affiliates, or groups pledging support in at least 18 countries or territories, including Afghanistan, Algeria, Egypt, India, Indonesia, Iraq, Jordan, Libya, Lebanon, Nigeria, the Palestinian territories (Gaza), Pakistan, Philippines, Russia (North Caucasus region), Sudan, Syria, Tunisia, and Yemen.6

• ISIS controls 11 cities in Iraq and 10 cities in Syria as of late June.7

Recent Developments

• ISIS lost control of Tel Abyad, Syria, to Syrian Kurdish and Free Syrian Army-linked forces. The border town had served as a key ISIS line of communication from Turkey to its northern Syrian stronghold of Raqqa. ISIS has been launching counter-attacks against the border town.

• ISIS has maintained control of Ramadi, the capital of Iraq’s largely Sunni-populated Anbar province along the Syrian border, after seizing it in May. It is preparing to defend the area by digging trenches and emplacing improvised explosive devices, among other tactics.

• ISIS-affiliated militants have been consolidating control in and around Sirte, Libya. ISIS was recently pushed out of the coastal city of Darnah, which was at one point the top source of foreign fighters for al Qaeda in Iraq (AQI), ISIS’s predecessor. An estimated 3,000 fighters in Libya are aligned with ISIS. ISIS has reportedly sent fighters in Libya funding and military trainers over the last several months. The terrorists who separately attacked the National Bardo Museum and a coastal resort in Tunisia this year reportedly attended training camps in Libya.

• ISIS formally accepted a pledge of allegiance from followers in Russia’s North Caucasus region. As many as 2,500 fighters from this region have joined extremists in Syria and Iraq.

• Al Qaeda in the Arabian Peninsula (AQAP) has been forging alliances with and co-opting local Sunni tribes in southern Yemen since it defeated Yemeni security forces there in April. A recent prison break in Taiz, Yemen, reportedly freed more than 1,200 prisoners, including suspected AQAP militants.

• AQAP leader Nasir al Wuhayshi was killed in a targeted strike in Yemen. Wuhayshi served as deputy to al Qaeda leader Ayman al Zawahiri and helped build AQAP following a 2006 prison break. AQAP military commander Qasim al Raymi has been named his successor.

6 Data compiled by the Majority Staff of the Homeland Security Committee.

7

These figures are derived from assessments of territorial control conducted by the Institute for the Study of War.

• Al Qaeda’s affiliate in Syria, Jabhat al Nusra, is a prominent force in the anti-Assad regime coalition – supported by Qatar, Turkey, and Saudi Arabia – that has captured Idlib and other areas in northern Syria since March.

• A cell of veteran al Qaeda operatives in Syria plotting external attacks (Khorasan Group) has maintained a presence in northwest Syria, where U.S. and coalition forces targeted buildings and training camps associated with it in May.

OTHER DEVELOPMENTS

ISIS aggressively exploits social media in order to recruit fighters, disseminate propaganda, and trigger attacks in the West.

• Since the beginning of this year, ISIS has pushed out more than 1,700 “products,” including videos, photographic reports, and magazines over social media.8

• There are an estimated 200,000 pro-ISIS messages posted on Twitter every day.

• ISIS released the 9th issue of its English-language magazine “Dabiq” in May. The articles praises the attackers who targeted the Garland, Texas, cartoon contest, exhorts followers to commit terrorist acts in the United States and other Western countries, and touts the “benefits” it offers people living in its territory.

The risk of Islamist terrorists exploiting refugee and migrant flows to travel freely remains high as underscored in a recent arrest.

• Italian authorities arrested Abdel Majid Touil, a 22-year-old Moroccan terror suspect who arrived in Italy on a migrant boat and spent several months there. Touil is suspected of being part of the terror network behind the March National Bardo Museum attack in Tunisia.

• ISIS-aligned militants have been taxing migrant boat smugglers and using them to transport militants, according to a Libyan government adviser citing conversations with smugglers. Reports in 2014 indicated that ISIS operatives had discussed using refugee flows into Europe as a “Trojan Horse” for its operatives. Italian officials have reportedly expressed concerns over terrorists’ potential exploitation of these flows.

The Obama Administration released additional detainees from Guantanamo Bay in June and is formulating a broader plan to shutter the facility.

• Defense Secretary Ashton Carter said he is working with the White House on a closure plan for Guantanamo to be submitted to Congress.

8

National Counterterrorism Center Deputy Director John Mulligan, testimony before the House Homeland Security

Committee, June 3, 2015.

• The Defense Department announced it transferred six al Qaeda detainees – several who reportedly served as bodyguards for Osama bin Laden – from Guantanamo to Oman. Almost 30 percent of released detainees from Guantanamo are known or suspected to have returned to the battlefield.

• The travel ban on the “Taliban Five” – freed in exchange for now-charged Sgt. Bowe Bergdahl – will remain in place temporarily. Restrictions enforced by the Qatari government were set to expire on June 1, 2015, but will now be extended until negotiations involving the U.S., Qatar, and Afghanistan are concluded.

Many more details in context here.

Qatar, Where Obama Nurtures Terrorism

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In 2013, Obama declared: I extend my best wishes to His Highness Sheikh Tamim bin Hamad Al Thani as he assumes his new role as the Amir of Qatar.  Qatar is an important partner of the United States, and we look forward to further strengthening our cooperation in the years ahead.  I also extend my appreciation to His Highness Sheikh Hamad bin Khalifa Al Thani for his friendship and leadership.  The United States looks forward to working with Sheikh Tamim to deepen the ties between our two countries, and to continue our close partnership on issues of mutual interest.

The Taliban 5 were released to Qatar who are free to move about the country. Qatar funds Hamas.

In part from the Washington Institute:

When Emir Tamim bin Hamad al-Thani visits the White House on February 24, President Obama will have to contend with a Qatari diplomatic scorecard that has significant marks on both sides of the ledger. Given its historically awkward relations with neighboring Saudi Arabia and its shared ownership with Iran of the world’s largest offshore natural gas field, Qatar looks to the United States as its main security guarantor. That has suited the U.S. military, which has used the giant al-Udeid Air Base outside Doha for operations over Iraq and Afghanistan. But Qatar, with a population of around two million, of which only some 10 percent are citizens, has an often quirky tendency to demonstrate its independence. Past sins include parading Stinger missiles illegally acquired from Afghanistan mujahedin, allowing its Aljazeera satellite television channel to broadcast inflammatory and false reports that led to American deaths, and financing terrorism.
Indeed, as deputy CIA chief David Cohen told a Washington audience last March while serving as the Treasury Department’s undersecretary for terrorism and financial intelligence, “Distressingly, Iran is not the only state that provides financial support for terrorist organizations. Most notably, Qatar, a longtime U.S. ally, has for many years openly financed Hamas, a group that continues to undermine regional stability. Press reports indicate that the Qatari government is also supporting extremist groups operating in Syria. To say the least, this threatens to aggravate an already volatile situation in a particularly dangerous and unwelcome manner.”

Okay, it is really festering in Qatar with terrorism. So the National Security Council, the White House, the State Department and the United Nations are cool with this?

Qatar’s Rulers Are Still Surrounding Themselves With Some of the Most Hateful Clerics in the Persian Gulf

David Andrew Weinberg
1 July 2015 – Business Insider

The ruler of Qatar, Emir Tamim bin Hamad Al Thani, hosted a gaggle of religious leaders at his palace in Doha to break the Ramadan fast on Tuesday of last week.

The emir physically embraced and accorded seats of honor to some of the most hateful clerics in the Gulf, religious leaders who together have a long record of intolerance toward women, Christians, Shiites, and Jews.

Footage from the event showed Tamim kissing the head of iconic Muslim Brotherhood ideologue Yusuf al-Qaradawi, who was seated even closer to the ruler than his ministers or brother, the deputy emir.

Qaradawi notoriously asked God in a 2009 sermon broadcast on Qatar’s Al Jazeera network to “take the Jews, the treacherous aggressors” and to “count their numbers, and kill them, down to the very last one.”

He has also chaired a network of charities called the Union of Good that is under US terror finance sanctions on charges of being a front for Hamas. Qaradawi then bragged that he himself had avoided being sanctioned because Tamim’s father, the previous emir, stood up on his behalf.

Qaradawi has ceased giving televised sermons in the country. This was reportedly one of Qatar’s concessions last year to end a diplomatic breach with its Gulf neighbors, a standoff exacerbated by the cleric’s condemnation of those countries’ anti-Brotherhood policies. Yet Qaradawi’s peck from the prince suggests that the hardline preacher still continues to have access to Qatar’s ruling circle.

Qatar’s ruler also embraced a trio of Saudi preachers who were profiled in a March report on Saudi incitement and human rights abuses that I helped write for the nonprofit group Human Rights First. Mohammed al-Arifi, Aidh al-Qarni, and Nasser al-Omar have a combined 23 million followers on Twitter, in part because of the tolerance or support they receive from Gulf rulers.

Al-Arifi was recorded last Tuesday exchanging kisses with Tamim and speaking into his ear. Also last week, Qatar’s Ministry of Islamic Affairs and Endowments announced it was “delighted to invite” guests to several events featuring Arifi at Qatar’s massive state-controlled Grand Mosque.

Yet Mohammed al-Arifi has been accused of describing Shiites as “non-believers who must be killed,” and of decrying them for “treachery” and “evil.”

The Middle East Media Research Institute says he has also proclaimed “one’s devotion to jihad for the sake of Allah and one’s will to shed blood, smash skulls, and chop off body parts … constitute an honor for the believer.” On Al Jazeera he called Osama bin Laden a “sheikh” and insisted members of Al Qaeda “do not tolerate bloodshed.” According to Saudi women’s rights activist Eman al-Nafjan, Arifi has also delivered guidance on how to beat one’s wife.

Another Saudi preacher who exchanged kisses with Tamim that same evening was Aidh Abdullah al-Qarni, who was visiting the country to deliver several lectures for Ramadan. Qarni has previously stated that when Jews and Christians claim God loves them, “they are lying, Allah’s wrath upon them.” He also has hailed fighters of the US-designated Foreign Terrorist Organization Hamas as holy warriors, and maligned Jews as “the brothers of apes and pigs.”

Finally, Saudi preacher Nasser al-Omar was also photographed holding hands with a grinning Tamim and sitting next to Qatar’s Minister for Islamic Affairs and Endowments.

According to CNN Arabic, al-Omar once sought a meeting with the Saudi king to warn against “the danger” of granting women the right to drive, which the preacher warned would “open the door of evil.” He also allegedly signed a petition in 2008 that called the “Shi[ite] sect an evil among the sects of the Islamic nation, and the greatest enemy and deceivers of the Sunni people.”

On his website, al-Omar endorsed the Islamic Front in Syria in 2013, even though one of the group’s leaders had already advocated ethnic cleansing of Shiites and Alawites, and its members had possibly participated in the summary execution of Alawite villagers.

Raising further questions about the Qatari government’s views and priorities, on June 28th the country’s prime minister graced with his presence a lecture by another Saudi cleric, Salman al-Oudah, who has suggested that Jews eat human blood in their Passover matzah.

On the most recent anniversary of the 9/11 attacks, Qatar agreed to participate in a coalition against the Islamic State, specifically pledging to repudiate the group’s hateful ideology.

Perhaps it is time for Washington to remind Qatar of its commitment.

Obama Concessions to Iran Began in 2008

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When one takes a macro view and goes back in time, the clues were there as proven when the United States sent an envoy to Venezuela for the funeral of Chavez, or when Obama himself received a book from the Venezuelan leader.

Laying the ground work, Obama while on the campaign trail in 2008 reached out to Iran by dispatching an envoy to Tehran. A letter was also passed on from Barack Obama to Iran’s Supreme Leader Ayatollah Ali Khamenei.  Then in 2009, Obama announced plans to begin talks with Iran and Ahmadinejad without ‘preconditions’.

The communications continued without notice or fanfare even as yet another letter sent to Iran in 2014 from Obama invited talks about the nuclear deal and Islamic State. President Barack Obama secretly wrote to Iran’s Supreme Leader Ayatollah Ali Khamenei in the middle of last month and described a shared interest in fighting Islamic State militants in Iraq and Syria, according to people briefed on the correspondence.

The letter appeared aimed both at buttressing the campaign against Islamic State and nudging Iran’s religious leader closer to a nuclear deal.

If one thinks there was or is no strategy, guess again. The strategy began in 2008 and it was to side with Iran and cave to all their requests and interests. Those interests include Syria, Lebanon. Venezuela, Cuba and perhaps even more.

Michael Ledeen, an Iran and Middle East expert recently wrote:

The actual strategy is detente first, and then a full alliance with Iran throughout the Middle East and North Africa. It has been on display since before the beginning of the Obama administration. During his first presidential campaign in 2008, Mr. Obama used a secret back channel to Tehran to assure the mullahs that he was a friend of the Islamic Republic, and that they would be very happy with his policies. The secret channel was Ambassador William G. Miller, who served in Iran during the shah’s rule, as chief of staff for the Senate Select Committee on Intelligence, and as ambassador to Ukraine. Ambassador Miller has confirmed to me his conversations with Iranian leaders during the 2008 campaign.

Ever since, President Obama’s quest for an alliance with Iran has been conducted through at least four channels:  Iraq, Switzerland (the official U.S. representative to Tehran), Oman, and a variety of American intermediaries, the most notable of whom is probably Valerie Jarrett, his closest adviser. In recent months, Middle Eastern leaders reported personal visits from Ms. Jarrett, who briefed them on her efforts to manage the Iranian relationship. This was confirmed to me by a former high-ranking American official who says he was so informed by several Middle Eastern leaders.

The central theme in Obama’s outreach to Iran is his conviction that the United States has historically played a wicked role in the Middle East, and that the best things he can do for that part of the world is to limit and withdraw American military might and empower our self-declared enemies, whose hostility to traditional American policies he largely shares.

Iran has a long history with Cuba and Venezuela, so reaching renewed diplomatic relations with Cuba and opening mutual embassies should be no surprise when once pays attention to details. It is not unreasonable to question Iran’s early demands of terms of talks and relations where Cuba and Venezuela were part of the conditions. Further, the matter of the Syrian red-line threat made by Obama cannot be dismissed either. Iran has been a deep loyal supporter of Bashir al Assad and Syria, where terror incubates daily.

As noted by Vanessa Lopez: Cuba’s relationships with Iran and Syria have proven to be politically lucrative for the island. Syria has shown itself to be a loyal ally and has increased its political relationship with Cuba over the past five years. Cuba is making great efforts to transform this political relationship into an economically beneficial one; Syria has recently indicated it is willing to engage Cuba more significantly, but it remains to be seen if these statements and memorandums between the two countries will translate into dollars for the Cuban regime. On the other hand, Iran has been completely willing to aid Cuba despite suffering economic losses.

These countries serve to prop up Cuba in the international arena and Iran provides much-needed economic life support. These relationships should be of the utmost concern to the United States, since they place two countries that have been delineated as part of the “axis of evil” closely allied with an anti-American regime only 90 miles off U.S. shores. Cuba’s expertise in espionage and biotechnology can be a significant threat in the hands of these two countries. In its efforts to make Syria an economic supporter, Cuba could be willing to assist it in these areas. Let us not forget also that Cuba was one of the few countries to advocate for the Soviets to use nuclear weapons during the Cuban Missile Crisis. Its ties with a potentially nuclear capable Iran and a resurgent Syria can lead to an unstable situation by our shores – or perhaps more immediately, in Israel and the rest of the Middle East.

Click here for a few headlines between Iran and Cuba since 2013.

Iran Cuba

Cuban envoy calls for broadening ties with Iran
TEHRAN (FNA)- Havana’s Ambassador to Tehran Vladimir Gonzalez called for the further expansion of Iran-Cuba bilateral relations.

Speaking at a press conference in Tehran on Wednesday, the Cuban ambassador pointed to the close relations between Tehran and Havana, and said, “There are extensive grounds for the expansion of the relations between Tehran and Havana.”

Anymore questions on what Barack Obama is really doing?

 

The Most Corrupt U.S. Govt Bank Goes Dark

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This is a small win for conservatives, but more it stops epic abuse and pay to play operations. The Exim Bank is for small business to be able to get global access. Would you consider Boeing or General Electric to be small?

 

(CNSNews.com) – Three corporations together received 44 percent of the Export-Import Bank’s $32.7 billion in assistance in 2011 – a total of $13.5 billion in federal financial aid. The three were Boeing, General Electric and international engineering firm Black and Veatch International.

Boeing alone received 38 percent of the bank’s financial assistance, or $12.4 billion ($11.7 billion for the mother company and another $700 million for its Boeing Satellite Systems subsidiary.)

General Electric received $1.2 billion while Black and Veatch received $805 million, according to the bank’s 2011 annual report.

The Export-Import Bank, whose authorization runs out in seven weeks’ time, is opposed by some conservatives who argue that it provides corporate welfare and below-market financing.

***  “The global economy is more integrated than ever … If we’re going to grow, it’s going to be because of exports. We’re on track to double our exports – a goal that I set when I came into office. Part of the reason for that is the terrific work that’s being done by our Export-Import Bank.”
President Barack Obama
November 12, 2011

It should be noted that the White House and the State Department had their hands all over this loan give-away agency. Note this is a State Department website link proving collusion and pay to play.

From the Washington Examiner:

Export-Import Bank enters ‘liquidation’ tomorrow night at midnight

Tuesday night at midnight, the 2014 reauthorization of the Export-Import Bank expires. The agency, under law, doesn’t evaporate immediately. Instead, per the law, Ex-Im enters “liquidation,” which is basically Chapter 7 bankruptcy.

Specifically, Ex-Im’s authorization allows it to continue to exist for one purpose: “exercising any of its functions subsequent to such date for purposes of orderly liquidation….”

Liquidation is Chapter 7 bankruptcy — which is exit, extinction. It is not Chapter 11 bankruptcy, which is what companies enter temporarily in order to reorganize and then come back. Ex-Im workers, when they return Wednesday morning, are supposed to be in the business of dismantling Ex-Im.

As I read it, that means Ex-Im is supposed to sell off the loans and guarantees on which it is currently sitting — not in a fire sale, but in an orderly fashion.

This isn’t a “lapse.” This is liquidation. I know many Ex-Im employees simply see this as a temporary lapse in lending authority, but that view is contrary to the law.

It will be interesting to see how Ex-Im officials follow the law.

Here is the full text of the relevant section of the law:

Export-Import Bank of the United States shall continue to exercise its functions in connection with and in furtherance of its objects and purposes until the close of business on September 30, 2014, but the provisions of this section shall not be construed as preventing the bank from acquiring obligations prior to such date which mature subsequent to such date or from assuming prior to such date liability as guarantor, endorser, or acceptor of obligations which mature subsequent to such date or from issuing, either prior or subsequent to such date, for purchase by the Secretary of the Treasury or any other purchasers, its notes, debentures, bonds, or other obligations which mature subsequent to such date or from continuing as a corporate agency of the United States and exercising any of its functions subsequent to such date for purposes of orderly liquidation, including the administration of its assets and the collection of any obligations held by the bank.

 

 

The U.S. $73 Billion Puerto Rico Problem

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In a White House briefing, Josh Earnest, the spokesperson revealed that the United States will not bail our Puerto Rico. Oh really? In March of 2009, the White House created one of ‘those’ task forces, this one dedicated to Puerto Rico. 4 years later….financial crisis is worse.

On October 30, 2009, President Obama signed Executive Order 13517, which directed the Task Force to maintain its focus on the status question, but added to the Task Force’s responsibilities by seeking advice and recommendations on policies that promote job creation, education, health care, clean energy, and economic development on the Island.

The current Task Force was convened in December 2009 with members from every Cabinet agency. It organized two public hearings in San Juan, Puerto Rico and Washington, D.C. to hear directly from a broad cross section of voices on the issues of status and economic development. Furthermore, hundreds of citizens from Puerto Rico and the mainland offered input by sending materials through the mail and electronically through a White House public comment e-mail address. Members of the Task Force and White House staff also met with congressional leaders, Puerto Rican elected officials, and other interested parties to hear their views.

 

   

From the WSJ:

As Puerto Rico sinks under the weight of $73 billion in government and agency debt—not to mention billions more in unfunded pension and health-care liabilities—its political class is looking for an escape hatch.

This isn’t about wiping the slate clean. But if a bankruptcy judge approved the write-down of, say, half the municipal debt, it would reduce the fiscal pressure.

There’s an app for that. The trouble for Puerto Rico is that getting it requires a retroactive change in U.S. law. If Congress cares about the future of Puerto Rico or the hundreds of thousands of Americans who hold Puerto Rican debt, it will just say no.

More than half of the outstanding Puerto Rico debt is triple tax-exempt revenue bonds issued by government-owned corporations. Unlike public corporations and municipalities in the 50 states, these enterprises do not have access to Chapter 9 bankruptcy protection under the U.S. code. If they fail to meet their loan obligations, they face receivership.

Last June Puerto Rico enacted a law to allow its government corporations to declare bankruptcy. But in February, a U.S. federal judge in San Juan struck down that law on grounds that the federal bankruptcy code supersedes it.

Greece vs. Puerto Rico

SAN JUAN, Puerto Rico –  The governor warned that Puerto Rico can’t pay its $72 billion public debt on the eve of a private Monday meeting with legislators, delivering another jolt to the recession-gripped U.S. island as well as a world financial system already worrying over Greece’s collapsing finances.

Gov. Alejandro Garcia Padilla is hoping to defer debt payments while negotiating with creditors, spokesman Jesus Manuel Ortiz said Sunday night.

Garcia is expected to air a pre-recorded televised address after meeting with legislators, who are still debating a $9.8 billion budget that calls for $674 million in cuts and sets aside $1.5 billion to help pay off the debt. The budget has to be approved by Tuesday.

Ortiz confirmed comments by Padilla that appeared in a report in The New York Times published late Sunday, less than a day before Garcia planned to meet with legislators.

“There is no other option. I would love to have an easier option. This is not politics, this is math,” Garcia is quoted as saying in the Times.

Puerto Rico’s bonds were popular with U.S. mutual funds because they were tax-free, but hedge funds and distressed-debt buyers began stepping in to buy up debt as the island’s economy worsened and its credit rating dropped.

Garcia’s comments will likely not have much impact on Wall Street, said economist Jose Villamil, a former U.N. consultant and CEO of an economic and planning consulting firm.

“The markets are clear that Puerto Rico is heading to a direction of a restructuring or default,” said the economist, adding that a voluntary restructuring by bondholders might be the best option.

“The last four administrations have kicked the can down the road,” said Villamil. “At this point, there is no more can to kick. So we’re going to take some very strict measures and some very profound measures. It’s going to hurt, but there’s no way out.”

Some legislators were taken aback by Garcia’s comments, including Rep. Jenniffer Gonzalez, spokeswoman for the main opposition party.

“I think it’s irresponsible,” Gonzalez said. “He met privately with The New York Times last week, but he hasn’t met with the leaders of this island.”

Puerto Rico’s constitution dictates that the debt has to be paid before any other financial obligation is met. If Garcia seeks to not pay the debt at all, it will require a referendum and a vote on a constitutional amendment, she said in a phone interview.

Puerto Rico’s situation has drawn comparisons to Greece, where the government decreed this weekend that banks would be shuttered for six business days and restrictions imposed on cash withdrawals. The country’s five-year financial crisis has sparked questions about its continued membership in the 19-nation shared euro currency and the European Union.

Puerto Rico’s governor recently confirmed that he had considered having his government seek permission from the U.S. Congress to declare bankruptcy amid a nearly decade-long economic slump. His administration is currently pushing for the right for Puerto Rico’s public agencies to file for bankruptcy under Chapter 9. Neither the agencies nor the island’s government can file for bankruptcy under current U.S. rules.

Puerto Rico’s public agencies owe a large portion of the debt, with the power company alone owing some $9 billion. The company is facing a restructuring as the government continues to negotiate with creditors as the deadline for a roughly $400 million payment nears.

Garcia has taken several measures to help generate more government revenue, including signing legislation raising the sales tax to 11.5 percent and creating a 4 percent tax on professional services. The sales tax increase goes into effect Wednesday and the new services tax on Oct. 1, to be followed by a transition to a value-added tax by April 1.