ISIS Tactics Include Taxes and Treasures

With a multi-country coalition, air strikes, ground intelligence gathering, surveillance drones and up to 1000 more troops being deployed to Iraq, the White House has no strategy and blames the Pentagon.

The Pentagon has a division that is assigned to war-gaming and planning in all conditions across the globe that is based on human intelligence, information gathered from diplomatic staff in all embassies, use of software, estimations, locations of military assets, threats from the enemy, money, transportation, secret deals, ordnance positioning and more. The Pentagon always has several strategies that are current and nimble that require dynamic alterations as even minor conditions change. For Obama to blame the Pentagon is childish and misguided.

Despite nine months and $2.44 billion in U.S. airstrikes against the fighters and their oil facilities and smuggling networks, the self-proclaimed Islamic State has proven to be as resilient financially as it’s been militarily.

The group that President Barack Obama dismissed in January 2014 as a junior varsity team last year seized an estimated $675 million from banks, plus $145 million in oil sales and ransom payments and tens of millions more from other commercial enterprises, looting and extortion, according to U.S. Treasury and United Nations figures.

“This isn’t your average terrorist group operating from your average safe haven,” said Juan Zarate, a former assistant secretary of Treasury for terrorist financing and financial crimes who spent years targeting al-Qaeda funding. “They have access to oil in Iraq and Syria; access to major population centers; access to banks, antiquities and smuggling groups — all of that allows them to be more agile and have access to more capital and resources than your average terrorist group.”

“The truth is nobody really knows how much they’re making now,” said Daveed Gartenstein-Ross, a senior fellow at the Foundation for Defense of Democracies. “The U.S. government is getting closer to pegging the group’s finances because of things like last month’s raid in eastern Syria. But no one knows how much they’re getting versus their spending.”

Islamic State “is in some ways a proto-state, in some ways a terrorist organization, in some ways an insurgency and in some ways a transnational criminal group,” he said. Like drug cartels in Colombia and Mexico and al-Qaeda offshoots in Somalia, northern Mali and Yemen, the group is extorting taxes, plundering local resources and taking a cut of commercial enterprises, he said. Read much more detail here.

ISIS has published their objectives on the internet for the world to see and yet operates with unhindered. ISIS is fully functional in an estimated 12 countries while the Obama administration is in neutral to lead the coalition in both offensive and defensive measures. The impact of the coalition is inert.

Egypt, a country working to recover from a power revolution is at particular risk.

From Oren Kessler in part: Egypt’s once-foundering economy is slowly rising from the abyss. President Abdel-Fattah al-Sisi has cut costly fuel and food subsidies, cut red tape on investments, instructed the Central Bank to tackle the black market in foreign currencies and vowed to bring unemployment under 10 percent.

His efforts are beginning to bear fruit. In May, the ratings agency Standard & Poor’s revised Egypt’s country outlook from stable to positive, predicting real GDP growth over the next three years of 4.3 percent – double the average of the four years since the revolution. Meanwhile, the government’s suspension of the capital gains tax sent stocks soaring 6.5 percent in a single day.

Still, no economic turnaround will be complete without a recovery in tourism. The U.S. State Department currently urges citizens to exercise caution in traveling to the country, and advises against any non-essential travel in Sinai, where an insurgency by Islamic State-linked militants has raged since the military ouster of Muslim Brotherhood president Mohamed Morsi in July 2013. At the same time, shadowy pro-Brotherhood groups calling themselves Ajnad Misr (“Soldiers of Egypt”) and the “Popular Resistance Movement” are increasingly targeting the populous mainland, including Cairo, Alexandria and the cities of the Nile Delta. The government accuses the now-banned Brotherhood of responsibility for virtually every attack, but the extent to which the group is actually orchestrating the violence remains unclear.

What is clear is that continued terrorism, particularly against tourists, has the capacity to set back the fragile gains Cairo has made in restoring stability and reviving its economy. For Egypt, persuading visitors to come soak up the country’s sights and sun will require convincing them beyond a reasonable doubt that traveling to the land of the Pharaohs will not be a one-way ticket. More detail here.

Posted in Citizens Duty, Cyber War, Department of Defense, Failed foreign policy, government fraud spending collusion, Industry Jobs Oil Economics, Insurgency, Middle East, Terror.

Denise Simon