milicorn

ruminations on international financing and whatever

Friday, June 06, 2014

U.S. black budget





[June 24 2009]

national security collection functions
The Intelligence Community gives current heavy reliance on contractors. It is estimated that some intelligence entities within the IC devote up to 70 percent of their resources to contractors.
Allowing the private sector to be so heavily involved in the intelligence business is counterproductive for several reasons. First, it fosters an atmosphere of cronyism and patronage that is unhealthy in a functioning bureaucracy.
Unbalanced reliance on contractors erodes institutional knowledge and quality. Also, there is the ideological question of how much of our national security collection functions we believe it is prudent to outsource? To whom are the contractors ultimately loyal—their government or their corporation? Our national security depends upon it.
here

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Tuesday, May 14, 2013

Dexter Filkins on the Syrian Sinkhole


 Much of the aid that the White House is supplying to the opposition is intended to provide the rudiments of civilian infrastructure in liberated areas, including electrical generators and Internet connections. But the President's critics argue that the United States needs to become more deeply involved with rebel groups, so that it has allies in Syria. The U.S. has few friends it can call on to gather intelligence, secure chemical weapons, or even provide a welcome to American troops in the event of a military operation; after Assad falls, there is little guarantee that the new leaders will be sympathetic. Mc­ Cain told me, "If you believe—that's one the Administration and all of us agree on—that Bashar al-Assad's departure is inevitable, then every day that goes by this conflict will get harder, and the harder it's going to be to clean up when it's all over."
Still, Obama's aides argue that nothing will prevent the war from continuing after the regime falls. Along with the shabiha, Assad has mobilized the Popular Committees, a nationwide militia made up largely of minority groups loyal to the regime. Both forces—together with Assad's regular Army, of about seventy thousand active soldiers—appear prepared to continue fighting if the rebels take Damascus. White House officials and intelligence ex­ perts say that much of the post-regime planning is being done with the help of Iran's Revolutionary Guard and Hezbol­lah; they, too, are prepared to fight on after Assad.
According to the most common pre­ diction of the war's eventual end, Assad will lead Syria's Alawites to an enclave on the Mediterranean coast, which includes the major ports of Latakia and Tartous, where the Alawites predominate. Amer­ ican officials say that Assad is trying to lay the groundwork. The regime has ethni­cally cleansed several Sunni-majority villages on routes that lead to the coast. And, according to the American intelligence official, the regime appears to be stockpiling weapons and supplies in the area. Perhaps most suggestive is the tenacity with which it has held on to the city of Horns, which lies on the highway between Damascus and the coast. Homs would give an Alawite rump state unimpeded access to Hezbollah, and to Iran. "Homs is the key," the official said. "If they can hold it, then they can have the Alawite enclave on the coast that's linked to Hezbollah and backed by the Iranians, and the Russian ships could still come into the port." It was in Homs that American officials spotted the regime training the shabiha in the use of chemical weapons.
Joshua Landis, a professor of Middle Eastern Studies at the University of Oklahoma, who has written extensively about Syria, doubts that the Alawites will be able to build a state on the Mediterranean—"Assad's enclave of evil," he calls it—though he expects that Assad will destroy Damascus in the attempt. Instead, he says, the capital will likely fall to a newly empowered Sunni majority, who will undertake a large-scale expul­ sion of Alawites from the country. 'When this is over, you are not going to want to be an Alawite in Syria," he said. "Once the Sunnis take power, they are going to want the coast, and right now the Alawites have it. The elegant solution, for them, is ethnic cleansing. It's elegant because the alternative is killing all the Alawites. The Sunnis will pick one little town, maybe two, and kill everyone. The rest of the Alawites will not stick around and wait to see what hap­pens. They will all go to Lebanon."
In May, the senior American official who is involved in Syria policy met me at his office in Washington. When I asked him to predict Syria's future, he got up from his desk and walked over to a large map of the country which was tacked to his wall. "You could have a situation where the more secular rebel groups could well be fighting the more Islamist-oriented groups," he said. "We are already getting that in places like Deir ez-Zor, in the east. In Aleppo, they fight each other." Pointing to an area near the Turkish border, he said, "We see fighting between Kurdish and Arab militias up in the north." Elsewhere, there were Druze militias, members of a small religious community most often associated with Lebanon. 'They have had some clashes with the Free Syrian Army. And here is my favorite. Christians are now setting up their own militia.
"What does that sound like? Leba­ non. But it's Lebanon on steroids." He walked back to his desk and sat down. "The Syria I have just drawn for you—I call it the Sinkhole," he said. "I think there is an appreciation, even at the high­ est levels, of how this is getting steadily worse. This is the discomfort you see with the President, and it's not just the President. It's everybody." No matter how well intentioned the advocates of military intervention are, he suggested, getting involved in a situation as complex and dynamic as the Syrian civil war could be a foolish risk The cost of saving lives may simply be too high. "Whereas we had a crisis in Iraq that was contained— it was very awful for us and the Iraqis— this time it will be harder to contain," he said. "Four million refugees going into Lebanon and Jordan is not the kind of problem we had going into Iraq." In a year, he estimated, Lebanon alone could have four million refugees, doubling the population of the country. "Jordan will close its borders, and then you will have tens of thousands of refugees huddling down close to that border for safety."
The rapid growth of Al Qaeda in Syria is deeply troubling, he said. "In February, 2012, they were tiny. No more than a few dozen. Now, fast-forward fourteen months. They are in Aleppo. They are in Damascus. They are in Homs." In Iraq, he said, "They didn't grow so fast and they didn't cover all the big cities. In Syria, they do." Also, he pointed out, there were no chemical weapons in Iraq, as there are in Syria. "We will have a greater risk, the longer this goes on, that the bad guys—they are all bad guys, but I mean terrorist groups like Hezbollah and Islamist extremist groups—will acquire some of these weapons. How do you plan for that? The longer the war goes on, the more the extremists will gain." Indeed, the longer the war goes on, the greater the threat that it will engulf the entire region.
The official said that the United States' quandary was clear enough: "Iraq was a searing experience—to see our kids out there, out on those checkpoints, and they don't speak Arabic, and they don't know what the fuck is going on around them. I know there is a debate on military intervention. I cannot recommend it to the President unless there is a very clearly defined political way back out. People on the Hill ask me, 'Why can't we do a no-fly zone? Why can't we do military strikes?' Of course we can do these things. The issue is, where does it stop?" ♦

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Wednesday, April 10, 2013

Pacific Pivot: North Korea helping U.S. containment move


Sun Zhi

"We understand what kind of regime North Korea is, but we also understand that North Korea is playing games," said Sun Zhi, the, director of the Center for U.S-China Relations at Beijing's Tsinghua University.

"Most importantly, we are mplaining that the United States is using military drills as an excuse to continue to do this (rebalancing), putting up B-2s and other advanced weapons systems," he said.

B-2 and B-52 bombers, radar-evading F-22s and anti-missile system vessels like the USS John S. McCain represented the initial U.S. response to North Korea's repeated, explicit threats to launch nuclear strikes against the United States.

The U.S. also said it would shift THAAD (Terminal High Altitude Area Defense System) to defend Guam from missile attack. And Tokyo's Yomiuri Shimbun newspaper said Japan would permanently deploy Patriot Advanced Capability-3 (PAC-3) anti-missile systems in Okinawa to counter North Korean missiles.

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Monday, March 04, 2013

E.U. asked to cut off Iran's SWIFT access


oil sanctions
European Union leaders are scheduled to meet March 7 to consider a U.S. proposal that the E.U. cut off Iran’s access to a central European financial system that enables global transactions in euros, according to U.S. government officials apprised of the meeting.
U.S. officials have criticized the E.U. for allowing Iran to carry out financial transactions via the European Central Bank (ECB), which U.S. government officials say allows Tehran to skirt Western economic sanctions

Reuters is reporting that a European Union court has ruled against the EU banking sanctions imposed on one of Iran’s largest banks, which extends to the payment sanctions imposed by Swift in March of last year. This represents the second such judgment against the banking sanctions and brings into question the legitimacy of using the Swift payments network as an economic weapon.

On Tuesday, the EU’s General Court ruled that, in the case of Bank Saderat, there was insufficient evidence demonstrating that the bank was involved in Iran’s nuclear program. Last week, the court issued a similar ruling in the case of Bank Mellat, the largest private sector lender in Iran. Boycotted by the EU since July 2010 and blocked out of Swift since March 2012, the two banks had filed suit with the European court to challenge those sanctions. EU

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Monday, March 19, 2012

Proposal for Britain to arm Vichy French troops has a long trail



A proposal discussed at the meeting was approved in May 1942 by General Alan Brooke, Chief of the Imperial General Staff. Under the top secret plan Britain was to arm Vichy troops and link up with them in an Allied landing at Bordeaux and La Rochelle. At the time Britain had no official military links with Vichy and its forces were fighting Petain's troops in Madagascar.

Professor Eric Grove of the University of Salford, who discovered the papers, says he was astonished at what he found.


Alan Brooke took a risk by keeping Churchill out of the loop
"My eyes widened," he says. bbc

Alex Cadogan Diaries 18 January 1941:

Telegrams this morning from Tangier showing Weygand has decided to re-enter the war but can't do it till he gets material-- and how can we supply that to him? Asked Chiefs of Staff to study the question.


Weygand states that he decided to put the African Army in a state of readiness Recalled to Service pp. 309-11

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Saturday, December 10, 2011

eurozone zombie banks


Bank deposits with the ECB now stand at their highest level since June 2010 at €905bn (£772bn) as lenders withdraw deposits held with their peers and put them into the central bank. At the same time, banks in major eurozone countries such as France and Italy have become increasingly reliant on central bank funding. This follows the trend seen in smaller countries like Ireland where lenders have effectively becomes taxpayer-funded "zombie" banks.
The European banking sector's problems are being exacerbated by a wave of asset sales as lenders look to dramatically shrink their balance sheets. UBS estimates eurozone banks could sell off between €3.7 trillion and €4.5 trillion of assets in the next three years.
The financial resources to bail out Europe must primarily come from within the continent, the official said, adding that the IMF cannot substitute for a European show of force.
President Barack Obama has stressed that Europe has the means to resolve its crisis.
Europe simply needs to muster the political will, Obama said December 8,
As part of the summit, European Union members agreed to raise as much as 200 billion euros, or $267 billion, for loans the International Monetary Fund could offer to debt-wracked nations on the continent. But European officials failed to increase the 500 billion euro, or $689 billion, cap on their own bailout lending funds.

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Friday, December 09, 2011

Capital flight to Germany


The deal clinched by European leaders in the early morning hours of Friday seems unlikely to ease the intense financial pressures that have plagued the currency bloc for over two years. Nor will it dispel concerns that the euro area could eventually break apart, with one or more countries exiting despite the catastrophic consequences that would entail.
European companies spent billions preparing for the euro when it was introduced in 2000 by 11 countries. Contingency planning for an unraveling of the currency involves cutting investment, moving money to Germany, transferring headquarters to northern Europe from southern, and even going out of business, according to interviews with more than 20 executives.
The Bundesbank, Germany’s central bank, registered capital inflows of 11.3 billion euros ($15 billion) from non-banks in September, according to the breakdown of its current account published Nov. 9. That helped transform a deficit of 47.3 billion euros in Germany’s balance of other capital flows in August to a surplus of 700 million euros in September.
Euro-area governments have to repay more than 1.1 trillion euros of long- and short-term debt in 2012, with about 519 billion euros of Italian, French and German debt maturing in the first half alone, data compiled by Bloomberg show. European banks have about $665 billion of debt coming due in the first six months, according to Citigroup Inc., based on Dealogic data.
Holger Schmieding, chief European economist at Berenberg Bank in London, said the “avalanche” of refinancing needs in the next two months means the crisis could worsen and “the ECB would then finally be forced to step up its anti-crisis response to save the euro and itself.”

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