Diplomatic Suicide, Iran Celebrates

WASHINGTON (AP) — While President Barack Obama hasn’t ruled out the possibility of reopening a U.S. Embassy in Iran, Republicans say the Senate will vote within weeks on a bill to impose more sanctions on Tehran over its nuclear program.

Obama was asked in an NPR interview broadcast on Monday whether he could envision opening an embassy there during his final two years in office.

“I never say never,” Obama said, adding that U.S. ties with Tehran must be restored in steps.

Washington and its partners are hoping to clinch a deal with Iran by July that would set long-term limits on Iran’s enrichment of uranium and other activity that could produce material for use in nuclear weapons. Iran says its program is solely for energy production and medical research purposes. It has agreed to some restrictions in exchange for billions of dollars in relief from U.S. economic sanctions.

Then…..

Iran Is Getting Away With Murder

Achieving a nuclear deal with Tehran is hugely important. But stopping Iran from slaughtering innocent Syrians is a worthy goal.

Guantanamo Construction Contract for Education?

Just before Christmas of 2014, Barack Obama made a stunning public announcement regarding normalizing relations with Cuba. It appears that those relations have been underway for some time and the activities are head-shaking.

Just recently a construction contract was awarded for Gitmo. If Obama is releasing detainees and transferring them to destinations unknown, then what is being constructed? If he is going to escalate releases then what needs to be repaired or upgraded and for what? When Russia, Cuba, Iran, Nicaragua are colluding for military build ups and surveillance on the West, can we trust White House decisions on the future of Gitmo? Read on and make your own determination.

Islands Mechanical Contractor, Inc.,* Middleburg, Florida, is being awarded $7,727,970 for firm-fixed-price task order 0015 under a previously awarded multiple award construction contract (N69450-12-D-1274) for refurbishment of the Taurman Avenue Electrical Substation at Naval Station Guantanamo Bay. The work to be performed provides for the design and construction of new outdoor substation infrastructure to recapitalize the existing outdoor substation which has deteriorated and needs to be replaced. The project includes construction of site improvements, new metal support structure with concrete foundations and concrete equipment pads, security fencing surrounding gravel interior space, grounding system, medium voltage busing systems, vacuum circuit breakers, liquid filled transformers, enclosed metal-clad switchgear, manual isolation and bypass switches, lightning and surge protection, and modular enclosure to house solid-state, programmable monitoring, relaying and controlling system equipment. Work will be performed in Guantanamo Bay, Cuba, and is expected to be completed by August 2016. Fiscal 2015 Navy working capital funds in the amount of $7,727,970 are being obligated on this award and will not expire at the end of the current fiscal year. Two proposals were received for this task order. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity.

GUANTANAMO NAVY BASE, Cuba. — The base with the most expensive prison on earth is getting one of the world’s priciest schools — a $65 million building with classroom space for, at most, 275 kindergarten through high school students.

Do the math: That’s nearly a quarter-million-dollars per school child. In Miami-Dade County a new school costs perhaps $30,000 per student.

Congress recently allocated the funds for the new W.T. Sampson School to put the children of American sailors stationed here under one roof. It will meet Americans with Disabilities Act standards, have a proper public address system, computer and science labs, art and music rooms, a playground, cafeteria and gym — just like any new school anywhere in America.

But the investment also illustrates the Pentagon’s intent to keep this base open even if President Barack Obama manages to move out the last 132 war-on-terror captives, and close the prison run by 2,000 or more temporary troops and contractors.

GUANTANAMO NAVY BASE, Cuba. — The base with the most expensive prison on earth is getting one of the world’s priciest schools — a $65 million building with classroom space for, at most, 275 kindergarten through high school students.

Do the math: That’s nearly a quarter-million-dollars per school child. In Miami-Dade County a new school costs perhaps $30,000 per student.

Congress recently allocated the funds for the new W.T. Sampson School to put the children of American sailors stationed here under one roof. It will meet Americans with Disabilities Act standards, have a proper public address system, computer and science labs, art and music rooms, a playground, cafeteria and gym — just like any new school anywhere in America.

But the investment also illustrates the Pentagon’s intent to keep this base open even if President Barack Obama manages to move out the last 132 war-on-terror captives, and close the prison run by 2,000 or more temporary troops and contractors.

And it offers a lesson on the cost of doing business out here on Cuba’s southeastern tip where under the U.S. trade embargo all business is conducted independent of the local economy.

Base not prison

Guantánamo Bay may be best known for its war-on-terror prison separated from the rest of the island by a Cuban minefield. But this 45-square-mile U.S. Navy base, leased from Cuba for $4,085 a year that Havana won’t accept, functions like a small town of 6,000 residents.

Sailors and civilians on long-term contracts run the airport, seaport, public works division and a small community hospital. They bring their families and belongings, get suburban-style homes, scuba dive in the Caribbean — and send their children to two U.S. government schools that are nearer to the base McDonald’s and bowling alley than the Detention Center Zone.

This year, there are 243 students — 164 at the elementary school and the rest at a separate building for middle and high school students whose mascot is a pirate.

In Florida, it typically costs $20,000 to $30,000 per student to build a school, according to Jaime Torrens, chief facilities officer for Miami-Dade County Public Schools. But South Florida has a “competitive environment where labor is readily available, materials are readily available.”

Guantánamo’s costs are so much higher “because all materials must be barged to the island, and the construction contractor’s crews must live on site for the duration of construction,” said Cindy Gibson, spokeswoman for the unit that runs the Department of Defense schools.

She estimated building costs are “70 percent higher than the average construction costs experienced in the United States.”

The money for the new Sampson School is tucked inside the massive, $585 billion national defense spending act that, among other things, funds the war on the Islamic State and requires that new construction projects at Guantánamo have an “enduring military value” independent of the detention operations.

It also funds the renovation or new construction of six other Defense Department schools in Belgium, Japan and North Carolina. The next most expensive is another K-12 school being built on the outskirts of Brussels for another American enclave — the children of Americans assigned to the U.S. Army or NATO at a cost of $173,441 per pupil.

Consider this: Miami High School, with an enrollment of 2,906, spent $55 million to renovate and expand its 1928 Mediterranean Revival building, working out to $18,926 per student.

The Sampson School is being built for a maximum 275-member student body ($237,054 per pupil) at one location, something smaller but similar to the exclusive 1,200-student Miami Country Day School, whose head of school John Davies’ first reaction to the price-tag was “Wow, $65 million?”

For $65 million, he said, “we could probably do our entire new master plan for the campus, a center for the arts, parking garage, new gym, new cafeteria and pretty substantial classroom building.”

But Davies studied the building proposal and found “a pretty adequate but not over-the-top construction program.” He searched the specifications and justification and “it doesn’t strike me as one of those $600 toilets or $1,000 hammer kinds of things that we get every once and a while from the GAO” — the General Accounting Office that sometimes uncovers embarrassing examples of profligate U.S. government spending.

“Obviously we’re thinking we’ll be in Guantánamo for a long time,” he said.

Number crunch

To be sure, there’s no exact science for evaluating costs at the U.S.-controlled corner of Cuba. Any cost-benefit analysis is mired in political debate and difference of opinion.

Last year, for example, some Democrats in Congress got a Pentagon comptroller report on what it costs to run Guantánamo’s sprawling detention center operations, including to maintain its 2,000-plus staff and court system for seven of the last 132 detainees. It put the cost at $2.7 million per prisoner a year.

More prisoners have been released since then, meaning the Congressional crunch is more like $3.1 million per captive a year. And that price is probably higher. Some costs are classified.

In February, however, Marine Gen. John Kelly disputed that soup-to-nuts approach at a Congressional hearing. His Southern Command headquarters, with oversight of the prison, figured it cost “about $750,000” for each prisoner, he said.

Then again, he’s been seeking $69 million to replace a secret prison at Guantánamo that now holds 15 former CIA captives. It works out to $4.6 million per prisoner in construction costs, giving new meaning to the term “high-value detainees.”

Replace not renovate

The school project looks cheap by comparison. As presented to Congress, it consolidates two inefficient schools that were built in the 1970s and ’80s and have deteriorated across the decades.

The separate structures need new ventilation and air-conditioning systems, electrical upgrades of alarms and emergency systems, an updated elementary school kitchen, new bathrooms and insulation and retrofitting to meet new standards, according to a report to Congress by Chuck King, the facilities engineer for the Department of Defense Education Activity, who is based in Peachtree City, Georgia.

Instead, he proposed and Congress agreed to build the new 112,000-square-foot school on the site of today’s smaller, single-story 1983-vintage elementary school on Sherman Avenue — along the road to Camp X-Ray, the original war-on-terror prison, and the frontier with Cuba.

Students will go to school in trailers and other available space while their current building is demolished and replaced by the new one. Once the high school students move in, workers will demolish their 1975 building behind the base pub, O’Kelly’s, not far from the scrubby nine-hole golf course.

Thrice evacuated

The Sampson school system, established in 1931, is named for a 19th Century U.S. Navy rear admiral who was responsible for the blockade of Cuba in the Spanish American war. It has a storied history of closings that no occasional hurricane or snow day can match.

Sampson students were sent home — evacuated back to the United States — during World War II and for three months in 1962 during the Cuban Missile Crisis. The schools also closed in the mid-’90s when families were sent away as the base coped with a huge influx of tens of thousands of Cuban and Haitian migrants, housed in tent cities, that taxed this isolated outpost’s water desalination and other resources.

The new school’s plan includes state-of-the-art technology in physics, chemistry and video-broadcast labs, a music suite, LED lighting and a wireless network. It will also have space for 50 faculty and administration members, two or more floors and a stucco finish, according to the proposal to Congress.

It’s not possible to ask the kids what they think about it because Department of Defense policy shields school children from speaking with reporters on base. Besides, today’s students are mostly the children of military families that move every few years, meaning they’ll likely be gone by the time the new $65 million school opens.

It’s projected to be finished in April 2018. By then, Obama’s successor will be in office, the Pentagon will have completed a $31 million underwater fiber-optic cable between the base and South Florida and, unless Congress lifts the U.S. embargo on trade with Cuba, the blockade will be in its 57th year.

Miami Herald staff writer Christina Veiga contributed to this report.

The State of Palestine, Yes, No Maybe

Update: As of 5:00 PM, EST

UN REJECTS PALESTINIAN RESOLUTION TO DEMAND ISRAEL WITHDRAW FROM WEST BANK, EAST JERUSALEM

A revised text in the resolution for Palestinian statehood has been presented to the United Nations. There are some interesting demands such that some global leaders are not in support including the United States and Britain. Sadly through all the years of debate over statehood, very few look at history and borders. The debate is a false one when it is understood where “Palestine” was/is.

The draft resolution by the Palestinians calling for an Israeli withdrawal from the West Bank and East Jerusalem within three years and revised to include language declaring East Jerusalem as the future capital of a Palestinian state was presented to the UN Security Council late Monday.
The draft resolution affirms the urgent need to achieve “a just, lasting and comprehensive peaceful solution” to the decades-old Palestinian-Israeli conflict within 12 months and sets a December 31, 2017 deadline for Israel’s occupation to end.

State Department Spokeswoman Jen Psaki, when asked today if the United States would support a proposed United Nations resolution that would set terms of a peace deal between Israel and the Palestinians, said that “it is not something that we would support.”

The Times of Israel reports:

Washington has seen the text of a draft resolution circulating in the UN Security Council and “it is not something that we would support,” State Department spokeswoman Jen Psaki told reporters.

“We wouldn’t support any action that would prejudge the outcome of the negotiations and that would set a specific deadline for the withdrawal of forces,” Psaki said.

Psaki’s answer indicates that the United States would veto the resolution if it came before the Security Council.

Psaki’s comments came shortly after Senators Chuck Schumer (D – N.Y.) and Lindsey Graham (R – S.C.) called on the administration “to make clear that the United States will veto any United Nations resolution … to bypass direct negotiations and impose peace terms on Israel through the United Nations Security Council and other international bodies,” earlier today.

(Reuters) – Britain joined the United States on Tuesday, declaring that it cannot support a new Palestinian draft proposal calling for peace with Israel within a year and an end of the Israeli occupation of Palestinian territories by late 2017.

Jordan on Tuesday circulated to the U.N. Security Council a draft resolution prepared by the Palestinians, who said they want it put to a vote before Thursday. Washington said it could not support the draft because it was not constructive and failed to address Israel’s security needs.

British U.N. Ambassador Mark Lyall Grant was asked by reporters whether his delegation could support the Palestinian draft.

“Well no,” he said. “There’s some difficulties with the text, particularly language on time scales, new language on refugees. So I think we would have some difficulties.”

 

Global Financial Outlook 2015~Grim

What is the financial outlook for 2015? Not good as the monetary experts have created a study group in the United States to examine conditions, causes and solutions.

The Federal Reserve deliberately keeps quiet about how it measures lenders’ performance during downturns, to prevent banks from finding loopholes in the process that would allow them to take more risk, senior regulators have said publicly. It has given banks a little more information recently, but many executives still gripe about the tests.

“You put something in and one year it’s okay and the next year they say ‘no,’ and you’re scratching your head,” said one bank executive. The executive, like others that spoke to Reuters, spoke about the stress tests on the condition of anonymity.

A few years ago, banks might have hesitated to share information with rivals about how they measure risk and how they communicate with the Federal Reserve. Their willingness to talk to competitors about these issues underscores just how exasperated they are with the process. Meanwhile, banks in Europe are failing stress tests as Italy suffered the worst count: nine of the country’s 21 banks examined failed the test. Italy is Europe’s fourth-largest economy.

Greece and Cyprus, southern European countries that required international bailouts, were next. In each country, three of four banks examined did not pass muster.

Five of the Italian banks and one Greek bank have since covered their shortfalls.

Only one of the 25 major banks in Germany, Europe’s strongest economy, failed the test, but it has since raised sufficient capital.

Greece is the indicator for Europe as Greece has undergone the most strenuous financial retooling program in the last few years and yet it is not enough. Banks are all interconnected given the quiet bailouts globally through the International Monetary Fund and associated global banks. So what about Greece?

Greece’s threat to the European economic recovery

It is difficult to exaggerate the importance of the Greek government’s failure today to secure sufficient votes in parliament to choose a new president for the country. Since such a failure not only forces Greece to hold snap elections by the end of January, which could see the coming to power of a radical left-wing government. It also raises the real possibility that Greece will be forced to exit the Euro in 2015 that would be a major blow to the prospects of a meaningful European economic recovery.

On the basis of current electoral polls, the Syriza Party, headed by Alexis Tsipras, should win the parliamentary elections now scheduled for January 25. Judging by Syriza’s consistent electoral promises, if elected one must expect that Syriza will roll back the austerity policies imposed on Greece by the IMF, the ECB, and the European Union (the so-called “troika”). Syriza must also be expected to reverse many of Greece’s recent structural reforms in the labor market and in the area of privatization policy. In addition, it will more than likely insist on substantial official debt relief from the ECB, the IMF, and its European partners.

The prospect of a Syriza government taking office is already sending shudders through the Greek financial markets and is undermining confidence in the still very depressed Greek economy. One must expect that the election of Syriza will put Greece on a collision course with both the troika and the German government. Since it is difficult to see how the troika and  the German government can accede to Greece’s request for either debt relief or for additional budgetary financing at a time that Greece’s economic policy would be going in a direction clearly unacceptable to its European partners. For its part, it is difficult to see how Syriza can quickly make a policy U-turn from a position that it has been consistently espousing these past few years.

To be sure, a month in Greek politics is a long time and Syriza is by no means assured of electoral victory. However, it would seem that even in the best case scenario of a New Democracy win, it would fall well short of the votes needed for forming a majority government. With a deeply divided PASOK Party highly likely to be decimated in the elections, New Democracy will have difficulty in forming a stable coalition government. It is also likely that in the election campaign, New Democracy will emphasize that if re-elected it too will take a tough line with the troika, from which line it will be difficult to withdraw after the elections.

Greece’s already battered economy can ill-afford a prolonged period of political uncertainty, and much less a radical government, especially without the backstop of a troika financial support program. For not only does Greece have substantial official debt amortization payments to make in 2015 — it is also vulnerable to a run on its bank deposits. This would especially appear to be the case in light of the recent Cypriot experience, where Cyprus’s official international lenders insisted on a large write-down of bank deposits in return for their financial support to the country. Without a troika program in place, Greek banks would not be in the position to access the European Central Bank’s rediscount window in the event of a bank run that would almost certainly lead to the further collapse of the Greek economy.

European optimists argue that, unlike in 2010, any spillovers now from a Greek crisis to the rest of the Eurozone would be limited. However, in so doing they overlook Europe’s very poor economic and political fundamentals, which make the Eurozone all too susceptible to renewed contagion from the Greek crisis intensifying. After all, Europe is on the cusp of yet another economic recession and of a prolonged period of Japanese-style price deflation. Meanwhile, its economic periphery remains highly indebted and throughout Europe support for its political elite is crumbling at a time that parties on the extreme-left and the extreme-right of the political spectrum appear to be on the march.

U.S. Flag Down in Kabul, Taliban’s Rises

KABUL, Afghanistan — The war in Afghanistan, fought for 13 bloody years and still raging, came to a formal end Sunday with a quiet flag-lowering ceremony in Kabul.

The event marked the transition of the fighting from U.S.-led combat troops to the country’s own security forces.

In front of a small, hand-picked audience at the headquarters of the NATO mission, the green-and-white flag of the International Security Assistance Force was ceremonially rolled up and sheathed, and the flag of the new international mission called Resolute Support was hoisted.

U.S. Gen. John Campbell, commander of ISAF, commemorated the 3,500 international soldiers killed on Afghan battlefields and praised the country’s army for giving him confidence that they are able to take on the fight alone.

“Resolute Support will serve as the bedrock of an enduring partnership” between NATO and Afghanistan, Campbell told an audience of Afghan and international military officers and officials, as well as diplomats and journalists.

“The road before us remains challenging, but we will triumph,” he added.

Beginning Jan. 1, the new mission will provide training and support for Afghanistan’s military, with the U.S. accounting for almost 11,000 of the 13,500 members of the residual force.

“Thanks to the extraordinary sacrifices of our men and women in uniform, our combat mission in Afghanistan is ending, and the longest war in American history is coming to a responsible conclusion,” President Obama said in a statement issued in Hawaii, where he is on vacation with his family.

Afghan President Ashraf Ghani, who took office in September, signed bilateral security agreements with Washington and NATO allowing the ongoing military presence.

ISAF was set up after the 2001 U.S.-led invasion as an umbrella for the coalition of around 50 nations that provided troops and took responsibility for security across the country. It ends with 2,224 American soldiers killed, according to an Associated Press tally.

Taliban spokesman Zabihullah Mujahid called Sunday’s event a “defeat ceremony” and said the insurgents’ fight would continue.

Taliban Claims America ‘Defeated’ in Afghanistan

Reuters is reporting that:

Taliban insurgents in Afghanistan on Monday declared the “defeat” of the U.S. and its allies in the 13-year-old war, a day after the coalition officially marked the end of its combat mission.

Meanwhile, as the AP reports:

Thousands of Afghans are pouring into makeshift camps in the capital where they face a harsh winter as the Taliban return to areas once cleared by foreign forces, who this week are marking the end of their combat mission.

And, as Heath Druzin of Stars and Stripes reports, some U.S. troops will remain in Afghanistan in what their commander describes as:

“… a non-combat mission in a combat environment.”

***

At the end of President Obama’s sixth year in office, the commander in chief who once vowed to end America’s longest period of war still maintains thousands of troops in Afghanistan and Iraq — conflicts that refuse to conform to neat White House timetables.

The end of this year marks an end to the official combat role for the U.S. in Afghanistan. As 2015 dawns, U.S. troops transition to a training and support role, even as the Taliban is increasing its attacks. And in Iraq, more U.S. troops will be on the way to a war that was supposed to be over, at least as far as the U.S. goes.

Read more here.