Europe on the Brink of Collapse: Schengen Agreement Suspended

Posted on September 13, 2015September 13, 2015 by Denise Simon

As posted on this site earlier, the Schengen Agreement, the open European borders treaty is now in question as suspension has happened between Germany and Austria.

A raw and partial translation into English from the German labor minister:

Federal Labour Minister Andrea Nahles warned in a tedious process of integration of the refugees coming to Germany. Not even one out of ten bring with the requirements to be conveyed directly in a work or training, the SPD politician said on Thursday in the Bundestag: “Usually lack the knowledge of German, but also other.” Nahles: “not all who come, there are highly qualified. Clearly, this is not so. The Syrian physician is not the normal case.” Although she was convinced that we will be able to provide first aid treatment of refugees. But Nahles is skeptical to the labour market. You need in most cases “supplementary qualification”, in many cases but only “an undergraduate education”.

Nahles said: “that is reflected in the unemployment statistics. I hope that everyone who says today that do we press, we take on the people we want to remember that even in a year.” This is “Then there’s no sign of a failed labour market policy, but a sign that we a running task must cope with a large.”

In the parliamentary debate on the budget for her Department, Nahles underlined that she will require 2016 expected to an additional three billion euros in its budget. Alone for the livelihood of refugees who are expected to remain in Germany, she count on spending from one to two billion euros. Nahles said one could say still no exact number. This depends on how quickly how many asylum applications are accepted and how many family members would comply. For programmes for the integration into the labour market, she quote 600 million to 1.1 billion euros. An additional 180 million euros would be needed for work-related courses. It will be not enough that they turn for a year “in crisis mode”, “and then everything goes back to normal”.

This is a historic moment for Europe due to the hundreds of thousands refugees flooding into every country and the consequences for Europe’s stability is in question. Social and entitlement programs will be insolvent, crime has risen to epic numbers, protests and civil unrest is an hourly occurrence, the banking and currency system is in jeopardy. These are all conditions and tools that America must learn quickly to not fall victim to the same circumstance.

Congressman Mike McCaul had this message this weekend:

To speak of the terror threat and jihad recruiting component is capping off dangerous environment.

Islamists in Germany trying to recruit young refugees

Berlin (AFP) – Muslim radicals in Germany are trying to recruit some of the growing numbers of asylum seekers reaching the country, according to intelligence services quoted by the German news agency DPA.

The Islamic extremists “are trying to approach the young unaccompanied refugees, who arrive in our country without their families and are particularly looking for contacts and support,” a spokesman for the intelligence service in the southern state of Bavaria told DPA.

He said many of the youths are approached around reception centres but also at Munich railway station where many of the asylum seekers have arrived from Hungary and Austria in recent days.

The Islamic extremists “want to take advantage of the insecurity and distress of the refugees,” he said.

***

‘We can’t take any more!’ Germany stops ALL trains from Austria as they reintroduce border controls and temporarily suspend Schengen Agreement

Germany has become the destination for many desperate Syrian refugees

Munich, which has been the main entry point, is now at breaking point

Germany has announced a reintroduction of ‘temporary’ border controls

The move marks a dramatic shift back from Europe’s Schengen agreement

Europe is struggling to deal with the huge influx of people fleeing violence

German politicians have called for urgent action on the migrant crisis as the country today halted all trains from Austria due to an overwhelming influx of refugees.

This evening Germany reinstated controls at its borders with Austria in an historic move which saw the open borders Schengen Agreement temporarily suspended.

The decision marks a dramatic shift away from the current abolishment of passport checks throughout Europe’s Schengen zone.

German Interior Minister Thomas de Maiziere said: ‘At this moment Germany is temporarily introducing border controls again along [the EU’s] internal borders. The focus will be on the border to Austria at first.

‘The aim of these measures is to limit the current inflows to Germany and to return to orderly procedures when people enter the country.

Mr de Maiziere added: ‘This step has become necessary. The great readiness to help that Germany has shown in recent weeks… must not be overstretched.’

The Interior Minister did not specify how long the border controls would remain in place or give details of exactly how incoming migrants would be handled. He said there could be disruption to rail travel. Most migrants have been arriving by train.

Germany’s national railway, Deutsche Bahn, said it had halted service between Austria and Germany for 12 hours at authorities’ orders.

The rules of Europe’s passport-free travel zone, known as the Schengen area, allow countries to reintroduce controls in exceptional circumstances, and the European Commission said that ‘the current situation in Germany … appears to be a situation covered by the rules.’

In a statement the EU executive said: ‘The temporary reintroduction of border controls between member states is an exceptional possibility explicitly foreseen in and regulated by the Schengen Borders Code, in case of a crisis situation.’

It added that the executive would keep the situation under review and said the aim would be to return to the normal situation of no border checks between member states of the Schengen zone ‘as soon as feasible’.

The European Commission added: ‘The German decision of today underlines the urgency to agree on the measures proposed by the European Commission in order to manage the refugee crisis.’

It is not yet clear exactly what the temporary measures include, but the move comes as German authorities have warned they are at ‘the limit’ in coping with the migrant crisis, with locals claiming Munich is on the brink of collapse.

German newspaper Bild cited security sources as saying the state government in Bavaria had asked the federal police to help deal with the task.

The newspaper said the federal police would send 2,100 officers to Bavaria to help it secure its borders.

Germany has become the destination for many desperate Syrian refugees fleeing their war-torn home country, after it waived EU rules in August.

Tens of thousands of people have crossed Austria by train on their way to Germany since the two countries threw open their borders to the migrants last weekend. A record number were expected to enter Austria from Hungary on Sunday.

The German government announced the nation would take in applications for Syrian asylum-seekers, regardless of where they first arrived in the EU.

Munich, in Germany’s southern state of Bavaria, has been the main entry point for those entering the country.

Some 13,015 refugees arrived in Munich yesterday alone and 1,400 more are expected to reach the city today – but there are fears it is already at breaking point.

A police spokesman in Munich said: ‘Given the numbers from yesterday, it is very clear that we have reached the upper limit of our capacity.’

Federal transport minister Alexander Dobrindt added how ‘effective measures are necessary now to stop the influx’. For the photo essay and complete story, click here.

Sanctions Relief Summary by U.S. per Iran JPOA

Posted on September 13, 2015September 13, 2015 by Denise Simon

The White House has never been concerned about an up or down vote by Congress to approve the Iran deal, rather the only concern is what Congress will do on the outside in regards to the sanctions on Iran. In the past week, Republicans and conservatives in Congress have been meeting to discuss all options to hurt the deal as it moves forward. One such option is to sue again Barack Obama on abuse of power over Congress using waiver authority on laws and standing sanctions on Iran and that discussion is taking place.

Sanctions Relief under the JCPOA (Direct text transfer from page 17 on in detailed Congressional Report. For the full report, click here.

The easing of sanctions under the JCPOA is relatively consistent with the stipulations of the framework accord. Under the JCPOA, the overwhelming bulk of sanctions relief occurs at Implementation Day—the day when the IAEA certifies that Iran has completed those stipulated core nuclear requirements listed in Annex V of the JCPOA (primarily reducing the size and scope of its enrichment of uranium). According to the JCPOA, the following sanctions are to be eased:

 On Implementation Day, many U.S., virtually all EU, and most U.N. sanctions are to be lifted or suspended that Iran has taken certain key nuclear-related steps that are U.N. Security Council Resolution 2231 of July 20 contains this provision.

 The U.S. sanctions that are to be suspended are primarily those that sanction foreign entities and countries for conducting specified transactions with Iran (so-called “secondary sanctions”). U.S. sanctions that prohibit U.S. firms from conducting most transactions with Iran are not being suspended. However, the JCPOA does commit the United States to a slight modification in the U.S. “trade ban” with Iran (Executive Order 12959 of May 1995) to permit: licensing the sale to Iran of commercial aircraft, and the importation of Iranian luxury goods such as carpets, caviar, and some fruits and nuts.

 The U.S. sanctions to be suspended are mostly those imposed since U.N. Security Council Resolution 1929 was enacted in June 2010.55 That resolution identified Iran’s energy sector as a potential contributor to Iran’s “proliferation-sensitive nuclear activities.”

 Type of Sanctions to Be Removed or Suspended. The sanctions relief on Implementation Day includes lifting or suspension of U.S. sanctions on foreign firms involved in Iran’s:57 (1) energy sector, including those that penalize Iran’s exportation of oil and sanction foreign sales to Iran of gasoline and energy sector equipment, and which limit foreign investment in Iran’s energy sector; (2) U.S. sanctions on foreign banks that conduct transactions with Iranian banks; (3) U.S. sanctions on Iran’s auto sector and trading in the rial. The United States is to revoke the designations made under various Executive Orders of numerous specified Iranian economic entities and personalities (listed in Attachment III of Annex II of the JCPOA), including the National Iranian Oil Company (NIOC), various Iranian banks, and many energy and shipping-related institutions. That step would enable foreign companies to resume transactions with those Iranian entities without risking being penalized by the United States.

 U.S. Laws to Be Waived and Executive Orders to Terminated. The suspension of U.S. sanctions as required under the JCPOA will necessitate: exercising presidential authority to waive sanctions mandated by the core operative provisions of the Iran Sanctions Act (P.L. 104-172 as amended);58 Section 1245(d)(1) of the National Defense Authorization Act for FY2012 (P.L. 112-81); the Iran Threat Reduction and Syria Human Rights Act (P.L. 112-158); the Iran Freedom and Counter-Proliferation Act (Subtitle D of P.L. 112-239); and the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA, P.L. 111-195). The statutory basis for the sanctions would remain unchanged by the agreement. Implementing the U.S. commitment will also require terminating the provisions of the following Executive Orders: 13574, 13590, 13622, 13645, and Sections 5-7 and 15 of Executive Order 13628. For information on the exact provisions of the Executive Orders and the laws referenced above, see CRS Report RS20871, Iran Sanctions and CRS Report R43311, Iran: U.S. Economic Sanctions and the Authority to Lift Restrictions.

 Request for Congress to Lift Sanctions Outright. The JCPOA requires the U.S. Administration, within eight years (“Transition Day”), to request that Congress lift virtually all of the sanctions that will be suspended under the JCPOA. The JCPOA requires all U.N. sanctions to terminate after 10 years of adoption of the JCPOA. Under the JCPOA, the eight year mark after JCPOA adoption is known as the Transition Day and the 10-year mark is known as the Termination Day.

 EU Lifting of Sanctions on Implementation Day. The EU sanctions to be lifted include: (1) the EU ban on purchases of oil and gas from Iran; (2) the ban on Iran’s use of the SWIFT electronic payments system that enables Iran to move funds from abroad to its Central Bank or its commercial banks; and (3) the lifting of EU sanctions (assets freezes/visa bans) on entities listed in Annex II, Attachment 1. This attachment does not include one controversial personality –IRGC-Qods Force Commander Qasem Soleimani. EU nuclear-related sanctions on him are to remain until Transition Day, although he will remain sanctioned under EU decisions on Syria and on terrorism. U.S. sanctions on Soleimani will remain, including secondary sanctions on entities that deal with him.

 U.S. Sanctions to Remain in Place. Other U.S. sanctions that are not required to be suspended in accordance with the JCPOA are mostly those sanctioning Iran’s support for terrorism, its human rights abuses, and worldwide arms and WMD-related technology to Iran. The specific Executive Orders and statutory provisions that will not be suspended include (1) E.O. 13224 sanctioning terrorism entities (not specific to Iran); (2) the Iran-Iraq Arms Non-Proliferation Act that sanctions foreign firms that sell arms and weapons of mass destruction-related technology to Iran; (3) the Iran-North Korea-Syria Non-Proliferation Act (INKSNA);59 and (4) the Executive Orders and the provisions of CISADA and the Iran Threat Reduction and Syria Human Rights Act that pertain to human rights or democratic change in Iran. Iran also will be remaining on the “terrorism list” and all sanctions triggered by that designation will remain in place, at least for now. The United States has not pledged in the JCPOA to remove or to reconsider Iran’s designation as a state sponsor of terrorism. That designation triggers numerous U.S. sanctions, including a ban on any U.S. foreign aid to Iran and on U.S. exportation to Iran of controlled goods and services, and a prohibition on U.S. support for international lending to Iran.

 U.N. Sanctions on Arms Sales and Ballistic Missiles to Be Terminated After Several Years. One issue that arose during final negotiations on the JCPOA was the suspension of U.N. sanctions on Iran’s development of nuclear-capable ballistic missiles and on Iran’s importation or exportation of conventional weaponry. The April 2 framework accord indicated that these sanctions would remain in place in the JCPOA. However, as subsequently negotiated, the ban on Iran’s development of nuclear-capable ballistic missiles is to be lifted within eight years of the JCPOA and the ban on conventional arms sales to Iran and on Iran’s exportation of arms are to be lifted within five years,60 as stipulated in Resolution 2231. However, as noted, U.S. sanctions on foreign entities that assist Iran with such programs will remain in place, as will specific U.N. Security Council Resolutions that prohibit weapons shipments to Lebanon and to Yemen.

 Ban on Reimposing those Sanctions that are Lifted or Suspended. The JCPOA contains language requiring that the parties to the agreement not reimpose the sanctions that will be suspended, as long as Iran is complying. The agreement states that if U.S. sanctions are reimposed (other than through reimposition on the grounds of Iranian noncompliance), Iran would not be bound by its nuclear commitments. An Iranian letter to the President of the U.N. Security Council, dated July 20, interprets the provision to bar the reimposition of those sanctions that are being suspended under “non-nuclear” justifications such as Iranian support for terrorism or armed factions in the Middle East, or for human rights violations. Iran interprets reimposition to be those sanctions that target the same sectors of Iran’s economy on which sanctions are being lifted or suspended (energy, financial, auto, shipping). However, there does not appear to be a prohibition on enacting further U.S. sanctions (other than those being suspended under the JCPOA) on arms sales to Iran, human rights violations and Iranian support for terrorism or armed factions in the region .

Automatic Reimposition of Sanctions (“Snap-Back”)

The JCPOA (paragraph 36 and 37) contains a mechanism for the “snap back” of U.N. sanctions if Iran does not satisfactorily resolve a compliance dispute. According to the JCPOA, the United States (or any veto-wielding member of the U.N. Security Council) would be able to block a U.N. Security Council resolution that would continue the lifting of U.N. sanctions despite Iran’s refusal to resolve the dispute. In that case, “… the provisions of the old U.N. Security Council resolutions would be reimposed, unless the U.N. Security Council decides otherwise.” These provisions are included in U.N. Security Council Resolution 2231.61 The total time for this “dispute resolution” mechanism –between the time of the complaint of Iranian non-compliance and the reimposition of U.N. sanctions, is 65 days.

A related question is whether the effect of sanctions currently realized could ever be reconstituted if U.N. sanctions are lifted but U.S. sanctions are reimposed. The effect of all sanctions has depended on the substantial degree of international compliance and cooperation with the sanctions regime that has taken place since 2010. A wide range of countries depend on energy and other trade with Iran and might be reluctant to resume cooperating with reimposed U.S. sanctions unless Iran commits egregious violations of its commitments. Countries that do not wish to reimpose their sanctions on Iran could argue that, because U.N. Security Council sanctions are lifted, they are no longer bound to cooperate with U.S. sanctions.

Implications for Iran of the JCPOA Sanctions Relief

The suspension of sanctions on Implementation Day would likely have significant implications for Iran’s economy, including the following:

 Crude Oil Exports. Iran will be able to export crude oil without restriction. Iranian energy officials estimate that Iran could double its oil exports from the 1.1 mbd level of the JPA period within about six months. Significant quantities of Iranian oil will likely hit the market immediately after sanctions suspension because Iran reportedly has about 30 million -50 million barrels of oil stored, and therefore available for immediate release onto the market.

 Access to Restricted Foreign Exchange Reserves. Upon the suspension or lifting of sanctions on Implementation Day, Iran will have access to about $120 billion in foreign exchange assets currency that it has been unable to repatriate to its Central Bank. However, according to Treasury Secretary Jacob Lew in testimony on the JCPOA in late July, about $65 billion of those funds are obligated. About $20 billion is owed to China for infrastructure projects performed in Iran by Chinese firms. About $45 billion is owed to cover loans to Iranian energy companies and other Iranian firms. The Treasury Department says that only about $56 billion would be available for Iran to use at its discretion, after these obligations are paid. The funds consist of some assets deposited before restrictions on the movement of the funds was imposed in February 2013 (Iran Threat Reduction Act), but the bulk of the assets are oil sales proceeds deposited since that restriction went into effect.

 According to the Treasury Department, Iran’s foreign exchange reserves are held by many banks around the world, and particularly in those of Iran’s five remain oil customers: China, India, South Korea, Japan, and Turkey.62 Some funds might be held in EU banks as well. Other banks said to hold Iranian foreign exchange funds are, according to a determination of waiver provided to Congress on June 17, 2015, in Oman, Switzerland, and South Africa.63 And, banks in the United Arab Emirates, a major trading partner of Iran, might hold some of the monies as well.

 Post-Sanctions Economic Growth. Economists estimate that Iran’s economy could grow as much as 7% after sanctions are suspended.64 Iran’s energy sector, automotive production sector, and other industrial sectors are likely to rebound strongly as importation of parts becomes easier to finance. Some assert that Iran will use the additional economic resources generated by the deal to enhance its regional position. The Administration acknowledges Iran might steer some extra funding to regional allies but argues that Iran will use the great bulk of the additional funds to invest in its domestic economy which has been starved by sanctions for several years.

 Commercial Aircraft Sales. Iran is likely to seek to purchase significant quantities of commercial aircraft because of the advanced age of most of the aircraft used by its airlines. The deal commits the United States to license commercial aircraft sales to Iran, including U.S.-made aircraft. If such sales are consummated, U.S.-Iran trade in dollars, which has been highly limited by sanctions for many years, could expand significantly. The importation to the United State of U.S. luxury goods is likely not to boost bilateral trade significantly because of the low-volume and low dollar-figure nature of these imports by U.S. buyers.

Iran Does Not Need to Cheat, Lying Works

Posted on September 12, 2015September 12, 2015 by Denise Simon

TEHRAN, Sep. 12 (MNA) – AEOI Deputy Zarean says no inspections of Iran’s military sites are on the agenda of a Tuesday visit by inspectors of the International Atomic Energy Agency (IAEA) to Iran. Deputy of the Atomic Energy Organization of Iran (AEOI) Ali Asghar Zarean said on Saturday that IAEA inspectors are scheduled to arrive in Tehran on Tuesday for talks.

He added that during this round of negotiations, inspections of Iran’s military sites are not on the agency’s agenda. The Iranian nuclear official maintained that the visit is within the framework of the JCPOA and the sides will hold talks for further coordination and practical measures in the future. On July 14, Iran and the IAEA signed a road map for “the clarification of past and present issues” regarding Iran’s nuclear program in the Austrian capital Vienna. The deal came on the same day Iran and the 5+1 group of countries reached an agreement over Tehran’s nuclear program.

And the timing of this announcement is beyond suspicious:

FNC: Iran has reportedly found an unexpectedly high reserve of uranium, following assessments that the country is running low on the nuclear raw material and just days after President Obama essentially secured an international nuclear deal with the country’s leaders.

The discovery was reported first by Reuters and based on comments made by Iranian nuclear chief Ali Akbar Salehi to the state news agency IRNA.

“I cannot announce (the level of) Iran’s uranium mine reserves,” Salehi was quoted as saying. “The important thing is that before aerial prospecting for uranium ores we were not too optimistic, but the new discoveries have made us confident about our reserves.”

The international deal with Iran, largely brokered by the Obama administration, slows the country’s nuclear development for nearly a decade in exchange for the lifting of billions of dollars worth of crippling economic sanctions.

World leaders think Iran is trying to develop a nuclear weapon, despite Tehran’s denial.

However, Iran under the deal will still be able to pursue a nuclear-development program, for which the uranium could be used.

The remarks by Salehi, head of Iran’s Atomic Energy Organization, could not be found Saturday morning on the IRNA website. But another story had him as saying the deal — reached in July and officially known as the Joint Comprehensive Plan of Action — will not slow the pace of Iran’s nuclear program.

“The official said the restrictions which the JCPOA entails are by no means the ones which would restrict Iran in its nuclear activities,” reads one line in the story.

Several other news-gathering agencies have either picked up the Reuters’ story or cited it in their own version.

That Obama would win congressional approval of the deal became apparent in recent weeks, but not without a fight from the GOP-controlled Congress and other critics including conservative groups and pro-Israel organizations.

However, the president worked all summer to garner support from Senate Democrat, who on Thursday block chamber Republicans from disapproving of the deal and from forcing Obama to resort to a presidential veto to win approval for what will likely be considered his biggest foreign policy achievement.

Salehi reportedly said uranium exploration had covered almost two-thirds of Iran and would be complete in the next four years.

Uranium can be used for energy production and scientific purposes but is also a key ingredient in nuclear weapons.

Some Western analysts have previously said that Iran was close to exhausting its supply of yellowcake — or raw uranium — and that mining it domestically was not cost-efficient, according to Reuters.

A report published in 2013 by U.S. think-tanks Carnegie Endowment and the Federation of American Scientists said the scarcity and low quality of Iran’s uranium resources compelled it “to rely on external sources of natural and processed uranium,” the wire service also reported.

Iran has repeatedly denied overseas media reports that it has tried to import uranium from countries like Kazakhstan and Zimbabwe.

Even Russia is Cheating When it Comes to Gold

Posted on September 12, 2015September 12, 2015 by Denise Simon

In 2012, a Russian agent (spy) who worked for a bank as cover was arrested in New York. The criminal complaint is here.

Then there were the Russian gangs (mafia) in New York in the last decade.

A former correspondent for the venerable emigre newspaper “Novoye Russkoye Slovo,” Grant has cultivated convicted murderers and extortionists as sources and landed interviews with notorious reputed crime kingpins like Ukrainian-born Semion Mogilevich, listed by the FBI on its “10 Most Wanted” list of fugitives.

When bodies began piling up in the turf wars that rocked Russian-speaking New York neighborhoods like Brighton Beach in the 1990s, it was Grant that U.S. journalists turned to to make sense of the murky motivations and underworld machinations behind the bloodshed.

Putin’s agents in America have been very busy.

Ever since Putin reclaimed the presidency last year, the trampling of the rule of law has only accelerated. It is now being used to stifle the last remnants of political opposition. There are lots of recent examples, like the bogus charges brought against Alexei Navalny, the heroic investigative blogger, and the posthumous case currently being prosecuted against, believe it or not, Sergei Magnitsky. And then there’s the case of Dmitry Gudkov and his father, Gennady.
Both men were opposition politicians in Russia’s Duma. Both supported the Sergei Magnitsky Act, which President Obama signed in December and which freezes the U.S. assets of Russian government officials who are labeled “gross human rights violators.” Putin and his underlings are understandably threatened by the new law. They have retaliated by passing a bill banning the adoptions of Russian children by Americans. (That’s right. The Putin government is getting back at the United States by punishing Russian orphans.) Gennady Gudkov, a former K.G.B. official, had built a security company, Oskord, with some 4,000 employees. Last summer the government conducted an “inspection” and found the company to have committed numerous violations. It quickly put Oskord out of business. Two months later, a committee of the Duma charged Gudkov with violating Duma rules and tossed him out of Parliament. More details here.

Would those Russian diamonds be fake by chance in New York?

Zerohedge: Over the past several years, incidents involving fake gold (usually in the form of gold-plated tungsten) have emerged every so often, usually involving Manhattan’s jewerly district, some of Europe’s bigger gold foundries, or the occasional billion dealer. But never was fake gold actually discovered in the form monetary gold, held by a bank as reserve capital and designed to fool bank regulators of a bank’s true financial state. This changed on Friday when Russia’s “Admiralty” Bank, which had its banking license revoked last week by Russia’s central bank, was reportedly using gold-plated metal as part of its “gold reserves.”

According to Russia’s Banki.ru, as part of a probe in the Admiralty bank, the central bank regulator questioned the existence of the bank’s reported quantity of precious metals held in reserve. Citing a source, Banki.ru notes that as part of its probe, instead of gold, the “regulator found gold-plated metal.”

The Russian website further adds that according to “Admiralty” bank’s financial statements, as of August 1 the bank had declared as part of its highly liquid assets precious metals amounting to 400 million roubles. The last regulatory probe of the bank was concluded in the second half of August, said one of the Banki.ru sources. Another source claims that as part of the probe, the auditor questioned the actual availability of the bank’s precious metals and found gold-painted metal.

The website notes that shortly before the bank’s license was revoked, the bank had offered its corporate clients to withdraw funds after paying a commission of 30%. This is shortly before Russia’s central bank disabled Admiralty’s electronic payment systems on September 7.

Admiralty Bank was a relatively small, ranked in 289th place among Russian banks in terms of assets. On August 1 the bank’s total assets were just above 8 billion roubles, while the monthly turnover was in the order of 40-55 billion rubles. The balance of the bank’s assets was poorly diversified: two-thirds of the bank’s assets (4.9 billion rubles) were invested in loans. The rest of the assets, about 30%, were invested in highly liquid assets.

Or at least highly liquid on paper: according to Banki.ru the key reason for the bank’s license revocation was the central bank’s insistence that the bank had insufficient reserves against possible loan losses.

The Russian central bank has not yet made an official statement.

The first question, obviously, is if a small-to-mid level Russian bank was using gold-plated metal to fool the central bank about the quality of its “gold-backed” reserves, how many other Russian banks are engaged in comparable fraud. The second question, and perhaps more relevant, is how many global banks – especially among emerging markets, where gold reserves remain a prevalent form of physical reserve accumulation – are engaging in comparable fraud.

Finally, what does this mean for gold itself, whose price on one hand is sliding with every passing day (thanks in part to what is now a record 228 ounces of paper claims on every ounce of physical gold as reported before), even as it increasingly appears there is a major global physical shortage. If the Admiralty bank’s fraud is found to be pervasive, what will happen to physical gold demand as more banks are forced to buy the yellow metal in the open market to avoid being shuttered and/or prison time for the executives?

Criminal Network Tactics on Europe’s Refugee CrISIS

Posted on September 12, 2015September 12, 2015 by Denise Simon

ISIS Terrorist Arrested in Stuttgart “Refugee” Center; “Boxes” of Fake Syrian Passports Intercepted

An ISIS terrorist posing as an “asylum seeker” has been arrested by German police in a “refugee” center in Stuttgart, and German customs officers have seized boxes containing Syrian passports being smuggled into Europe.

masked-ISIS

According to a report carried by RTL’s German language service, the terrorist is a 21-year-old Moroccan using a “false identity” who had registered as an asylum seeker in the district of Ludwigsburg. He was identified after police linked him to a European arrest warrant issued by the Spanish authorities. He is accused of recruiting fighters for ISIS, where he acted as a contact person for fighters who wanted to travel to Syria or Iraq.

This first confirmed arrest of a bogus “asylum seeker” came simultaneously with the admission by a German finance ministry spokesman that “boxes” of fake Syrian passports, destined for sale and distribution to the hordes of nonwhite invaders seeking to settle in Europe as bogus “war refugees,” had been seized.

That news, carried in a report by the German Tagespiegel newspaper, also revealed that 10,000 fake Syrian passports were seized by police in Bulgaria, on their way to Germany.

The finance ministry official said both genuine and forged passports were in the packets intercepted in the post. Possession of these passports is a vital part of claiming “asylum” as “war refugees.”

The Tagespiegel also revealed that the fake Syrian passports are being sold for about $1,500 each—and the fact that many of the “refugees” can afford to buy multiple passports is yet another indication of the bogus nature of their claims to be “asylum seekers.”

Significantly, the Tagespiegel article continued, “It is not only Syrians who are interested in Syrian passports. Refugees from Iraq, Afghanistan, and Pakistan want to become Syrian in order to secure their recognition as asylum seekers in Western Europe. According to press reports, nine out of ten refugees who came from Macedonia to Serbia claimed they were Syrians.”

The trade in fake Syrian passports was also confirmed by the head of the EU frontier police, Fabrice Leggeri, in a recent interview with the Europe 1 TV station.

Leggeri told Europe 1 that the trade in fake Syrian passports originated in Turkey. “There are people who are now in Turkey, buying false Syrian passports because they have obviously realized that it is a windfall since Syrians get asylum in all Member States in the European Union,” he said.

“People who use false Syrian passports often speak in Arabic. They may originate in North Africa or the Middle East, but have the profile of economic migrants.”

*** Second Tactic

Muslim Migrants Converting to Christianity to Improve Asylum Chances

Muslim migrants in Germany are converting to Christianity “in droves” in the hope it will improve their chances of winning asylum.

Hundreds of Iranians and Afghanis have been baptised at Trinity Church, a Lutheran church in Berlin, where Pastor Gottfried Martens offers a three-month “crash course” for new converts.

AP reports on one baptism where Martens asked Iranian refugee Mohammed Ali Zonoobi: “Will you break away from Satan and his evil deeds? Will you break away from Islam?” To which Zonoobi fervently responded: “Yes”.

Martens then baptised him “In the name of the Father, Son and Holy Ghost.” Mohammed renamed himself Martin.

Martin Zonoobi, a carpenter from Iran, arrived in Germany with his wife and children five months ago. He is one of many who have converted, with many claiming true belief has prompted them.

However, Pastor Martens admits that some convert just to improve their chances of winning asylum in Germany – as Christians who have apostatised from Islam they are likely to suffer heavy persecution if they are sent home.

Martens says motive is not important, however. “I know there are – again and again – people coming here because they have some kind of hope regarding their asylum,” he said.

“I am inviting them to join us because I know that whoever comes here will not be left unchanged.”

Many are so taken by the Christian message that they end up genuinely changing their beliefs anyway, Martens says. He adds that of those who have converted, only around one in ten stop attending church afterwards.

Although being Christian alone does not mean they will automatically win asylum – Merkel has even said that Islam “belongs in Germany” – many hope this will be enough to sway authorities.

None will openly admit converting just for asylum purposes as it could lead to them being deported as Christian coverts, possibly facing the death penalty when they return home.

Martens’s church is now reporting a surge in the congregation from 150 two years ago to more than 600 now. Some of the migrants coming to be converted are travelling from places as far afield as Rostock on the Baltic coast.

There no official figures on how many Muslims have converted to Christianity in Germany over the past few years, and the number is still tiny compared to the country’s four million strong Muslim population. Nonetheless, Martens describes the rate of conversions as a “miracle”.

He also claims to have at least 80 people, mostly migrants, waiting to be baptised.

Zonoobi’s wife Afsaneh, now known as Katarina, said the Christening marks a new beginning.

“Now we are free and can be ourselves,” she said.

“Most important, I am so happy that our children will have a good future here and can get a good education in Germany.”

*** Third Tactic

Since 2013, human smuggling of Syrians and other Middle Easterners into is viable industry

With The Help Of Smugglers, Syrian Refugees Sneak Into Europe

The 27-year-old Syrian, who once smuggled arms for Syrian rebels, is now waiting in Istanbul for a human smuggler to get him to Europe. He says his name is Mohammed. He does not offer a second name. He will go by air, he says, the safest route. He has paid a smuggler more than $8,000, and he’s sure he will get to Austria.

In the past week, he connected seven friends with smugglers.

“I know that most of them made it,” he says, with a tight smile. He is traveling light. Everything he owns is in a backpack.

“I am leaving Syria under a lot of pressure,” he explains.

He seems exhausted by the waiting. Twenty days ago, he got into a fight with an al-Qaida-linked group while helping a friend in the Syrian town of Sarqib. Mohammed says he killed two of their men.

“I needed to leave Syria because I was facing death,” he says.

He joins a surge of Syrian refugees smuggled to Europe. Many are from Syria’s educated, professional class, and have the means for the underground routes. The preferred destination is northern Europe, where economies are strong and the Syrians believe they can start over again.

The numbers seeking asylum in European Union countries doubled this year to more than 36,000, according to EU officials. The journey is long, but the travel is safe, depending on how much you are willing to pay.

Air routes are top of the line. The price tag for Sweden, the most desired destination, is $16,000.

The most dangerous route is by sea, where smugglers sell space on overcrowded fishing boats. The Italian coast guard recently rescued 120 mostly Syrian refugees off the Italian coast. In October, 30 Syrians drowned in a shipwreck between Malta and Italy.

More than 2 million Syrians have fled their homeland since Syria’s civil war broke out more than two years ago. Most have resettled in neighboring countries, including Lebanon, Jordan and Turkey.

Many believed it was a temporary move. But as the war grinds on, some Syrians are making a different calculation. There may be nothing to go home to for years.

Negotiating The Best Deal A Matter Of Life And Death

Over the past several months, the Syrian exodus has increasingly focused on Europe. For many, the journey starts in Turkey, where the human smuggling trade has long flourished.

In the Fatih district of Istanbul, past an outdoor market and down a narrow alley, the tea houses and kabob shops caters to Syrian refugees.

The menus are in Arabic, and so are the conversations. This is the place to make contact with a smuggler and begin the negotiations over price and destination. The tables are full. Syrian men drink sugary tea and swap stories about the best routes and prices.

Abdel Ghani, a medical technician from Qamishli, in northern Syria, sold his house to finance his trip. He’s on his third try.

“It becomes an addiction. I would try 100 times,” he says and shakes his head and laughs at his latest failed attempt. His smuggler got him a fake Swiss passport, but the birthdate made him 20 years older than his actual age.

He grew his beard, tried to stick out his lip like the man pictured in the passport. He made it to the Istanbul boarding gate before his documents were spotted as fakes.

He watched other Syrian families with fake passports board the plane. His documents were confiscated, but he wasn’t detained.

“I’m going to try again the day after tomorrow. I hope to get to Sweden,” he pledges.

Another Syrian at the table, a real estate agent before the revolt, says he sold everything he owned, and paid a smuggler $35,000 to get his wife and daughters to Germany. The trip took four months to arrange. He interviewed more than one smuggler.

“I had to pick a smuggler for my kids; it’s a matter of life and death,” he says, noting that his family arrived safely in Germany a month ago. “We got the right smuggler.”

Every part of a smuggled trip is a matter of luck. Hiring the right smuggler is only the first hurdle; getting into Europe is just the beginning of the journey.

There’s been a surge in the number of Syrians arrested in Romania, Macedonia and Bulgaria. Thousands of Syrian refugees are languishing in Greek detention camps. These are the perils of the route to northern Europe that begins with an air ticket, but usually involves trains, buses and sometimes a final border crossing on foot.

As Demand Rises, So Do Prices

A smuggler, who gives his name as Abu Salman, doesn’t want to talk in the restaurant. He invites us to a shabby hotel lobby next door. He’s in his 50s, wearing a frayed gray suit. He says he owned a successful restaurant in Syria before the revolt. Now, his trade is in people.

“There are Turks we’ve been working with; there is a relationship of trust,” he says.

Since February, Abu Salman says he has arranged for more than 500 Syrians to get to Europe. Most made it, though 150 are still stuck in Bulgaria.

As he explains the business, his cell phone rings. His cousin is calling from the Netherlands, where he just arrived.

“There was a delay of a month,” explains Abu Salman. His cousin had to spend time in Bulgaria and Serbia before finally getting to the Netherlands. The delays add to the cost. But this still counts as a success. Abu Salman is building a reputation.

“People are starting to call me from Syria, ‘Please make all the arrangements,’ they say,” according to Abu Salman.

The prices are rising as the demand grows.

“It used to be $6,000 for a boat to France,” he says. Now it’s $10,000, and some smugglers are asking for more. But desperate Syrians continue to sell everything they have and pay whatever it takes.