ADVENTURES IN WRITING! Operating from Northern Indiana, this blog will cover aspects of culture with a bent on humor and the relentless belittling of the mainstream media, politics, and the syphilitic GOP (both major parties). News analysis happens. Put on your adult diapers, this gwine'-a'-be a bourgeois hoot. Some much needed hilarity for working class North Americans and international readers. I'm the part of this human world that bites back. Let's roll.
Showing posts with label The World Bank. Show all posts
Showing posts with label The World Bank. Show all posts
Wednesday, January 27, 2010
Who got to Haiti first?
Port-au-Prince, Haiti--Who got there first? The Cubans, many-of-whom were already there in their usual form: as doctors. Why were they already there? Because the developed world is on their neck in Haiti and the place has been mismanaged before the earthquake and since the time of Columbus when the island of Hispaniola was first conquered and settled, primarily for exploitation. Cuba is part of this same legacy of colonialism and understands its effects, say what you will about the regime there. Hispaniola has been a hellhole for centuries, ever since the first white men planted their flags on its shores. The abuse is ongoing.
That's the part that never changes in poor Haiti, that first black republic, something they've been punished for ever since. Don't let anyone fool you on this central point: Haiti was a disaster before the earthquakes, a prototypical example of where the rest of us might be headed, including the centuries of ecological devastation spurred-on by the desire to exploit, to profit, from the misery of enslaved others. What the world should be doing is pledging to rebuild Haiti and its economy and to leave the place alone. We know that's not going to happen anytime soon.
But make no mistake: The Cubans made it to the Haitian-side of Hispaniola first, and not simply thanks to proximity. Will we have a rerun of Katrina? We already have, and under a black president. It took American forces three days to reach Haiti in significant numbers, just more abuse and negligence, the depriving of people of basic human rights.
Labels:
1492,
1804,
Christopher Columbus,
Cuba,
Human Rights,
IMF,
Katrina,
New Orleans,
Slavery,
The World Bank
Tuesday, February 24, 2009
Why did the IRS bust Swiss Bank UBS?
"Perhaps what we need is to go back to the first Bretton Woods, to go back to discipline. It's absolutely clear that financial markets need discipline: macroeconomic discipline, monetary discipline, market discipline.'' --European Central Bank President Jean-Claude Trichet, October
Washington D.C./Zurich, Switzerland--This isn't a difficult question to answer. We're seeing a reinstitution of some of the principles of the Bretton Woods system that was crafted primarily by US and UK officials (at the core of the process were economists John Maynard Keynes and Harry Dexter White) during WWII, laying-out the foundations for what the postwar reconstruction and the resulting economic order would look like and how it would function. Why Bretton Woods?
Western leaders didn't want to repeat the same mistakes that created the Great Depression and that definitely played a major hand in taking the world to war in the middle twentieth century. American and British financial leaders crafted an economic blueprint that--in its overall scope--was to leave the United States in charge as the world's banker of a generally global form of capitalism (whatever that means), but with other elements addressing the domestic fronts of participating nations that emphasized state intervention in those economies through the strict regulation of capital flight.
What is capital flight? There are several definitions, but there is a general agreement on its core features. Tax Justice Network, a federation of international and academic economists notes some of the basic features of capital flight:
- Flight capital is domestic wealth permanently put beyond the reach of appropriate domestic authorities. Much of it is unrecorded due to deliberate misreporting;
- Because no (or little) tax is paid on wealth that is transferred as capital flight, it is associated with a public loss and private gain.
- Because tax evasion is illegal and subject to criminal sanction in most countries, the management of flight capital is a form of money laundering. Offshore secrecy arrangements play a crucial part in the laundering process by enabling the origin and ownership of the capital to be effectively disguised. ("Illicit Capital Flows and the Offshore Economy, Tax Justice Network, 2008)
This, surely, is a major factor in why the Obama administration's IRS are going after UBS Bank and 250-300 American tax cheats holding illegal accounts at the Swiss institution. Going after these depositors heralds an action that would never have occurred under Reagan, Bush I, Clinton, let alone Bush II. That it's happening at all suggest that there is no longer any choice but to enforce laws covering capital flight--with the caveat that the Swiss courts have been "pushing-back," undermining Keynes's original proposals that debtor and creditor nations do the enforcing and even be willing to alter their behaviors and laws to do so. Nothing succeeds like failure.
The UBS bust also signals that things are especially dire--even desperate--in the international financial markets thanks to decades of mismanagement that metastasized under Republican governance. There is worse: nationalist-based noncompliance by a "receiving" nation like Switzerland is possible, and is occurring right now.
A Swiss tribunal has barred financial regulators from handing over information of UBS bank clients to the United States Justice Department, which is attempting to break the country's banking secrecy laws. UBS, Switzerland's largest bank, reached a settlement with the US authorities on Wednesday. It agreed to pay 780 million dollars and reveal the names of between 250 and 300 US clients.The Great Depression lasted roughly twelve years, and we could be in for a similarly long run if things play-out the same as they did in the 1930s, namely from protectionism and general economic warfare. The next-step would likely be another world war. The recent developments in Switzerland do not bode well, but it's likely that Zurich will ultimately comply in the release of additional account information.But will other money laundering nations comply?
On Thursday, UBS rejected a new US lawsuit asking for the disclosure of the identities of some 52,000 US customers suspected of evading taxes. The populist Swiss People's Party has protested against what it describes as "foreign blackmail". ("Swiss court blocks bank data disclosure," Radio Netherlands, 02.21.2009)
Swiss Justice Minister Eveline Widmer-Schlumpf travels to Washington on Monday for talks with her new US counterpart, Eric Holder, during which the UBS controversy is high on the agenda.
The Austrian chancellor, Werner Faymann, has defended banking secrecy, arguing on Swiss television on Tuesday that it did not stand in the way of punishing those who committed criminal offences. ("Pressure on UBS continues to weigh heavy," Swissinfo.ch, 02.24.2009)
Before the New Deal and Bretton Woods, regulation of America's economy under the Republican Party (with Democratic enabling, like now) was generally nil. Additionally, the idea of an international monetary system was entirely new in 1944 when the meeting at Bretton Woods, New Hampshire occurred.
The advantage we have now is that we at least have these precedents, but the warnings went unheeded thanks to various forms of market extremism that have lost their lustre in the face of reality, sunlight. This is another plus, but some are going to hang onto these extremist beliefs to their detriment. Some of the keys to solving the economic crisis will be limiting the effects of these false values to their holders through the enforcement of existing laws. The Justice Department's February 19th release (here-in-full) undescores the problem of capital flight and why it's harmful to the interests of the nation:
United States Asks Court to Enforce Summons for UBS Swiss Bank Account Records
WASHINGTON - The government filed a lawsuit today in Miami against Swiss bank UBS AG, the Justice Department announced. The lawsuit asks the court to order the international bank to disclose to the Internal Revenue Service (IRS) the identities of the bank’s U.S. customers with secret Swiss accounts. According to the lawsuit, as many as 52,000 U.S. customers hid their UBS accounts from the government in violation of the tax laws.
The government alleges in the lawsuit that of those 52,000 secret accounts, about 20,000 contained securities and about 32,000 contained cash. According to a UBS document filed with the lawsuit, as of the mid-2000s, those secret accounts held about $14.8 billion in assets. Court documents allege that U.S. citizens failed to report and pay U.S. income taxes on income earned in those secret accounts.
According to the lawsuit, Swiss-based bankers actively marketed UBS’s services to wealthy U.S. customers within the United States. UBS documents filed with the lawsuit show that UBS bankers came to the United States to meet with U.S. clients nearly 4,000 times per year, in violation of U.S. law. According to court documents, the government alleges that UBS trained its bankers to avoid detection by U.S. authorities. Court documents further assert that many U.S. contacts occurred through UBS-sponsored sporting and cultural events, designed to appeal to extremely wealthy Americans.
The lawsuit alleges that UBS engaged in cross-border securities transactions in the United States that it knew violated U.S. security laws. The lawsuit also alleges that UBS helped hundreds of U.S. taxpayers set up dummy offshore companies, to make it easier for those taxpayers to avoid their reporting obligations under U.S. tax laws.
"At a time when millions of Americans are losing their jobs, their homes and their health care, it is appalling that more than 50,000 of the wealthiest among us have actively sought to evade their civic and legal duty to pay taxes," said John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division. "It is time for those who are trying to hide from the IRS to rethink their actions. The Department of Justice is committed to do all that it can to aid the IRS in locating those who would seek to hide behind secret accounts and in holding them accountable under the federal tax laws."
"We are committed to moving forward with the summons enforcement process. This action sends a strong signal to taxpayers hiding their money offshore. The IRS will be aggressive in pursuing people who shirk their obligations under the tax law. These people owe it to their fellow citizens to pay their fair share of taxes," said IRS Commissioner Doug Shulman. "As Commissioner, I am committed to bringing to bear the full arsenal of IRS resources to pursue egregious offshore tax abuse. International tax issues are a top priority, and we will continue to aggressively pursue people hiding assets offshore. For people who are hiding money offshore, this serves as a wake-up call that they need to get right with their government. Taxpayers should talk to a tax professional and come forward under our voluntary disclosure process. Having the IRS find you could mean a much heavier price than coming forward on your own." ("United States Asks Court to Enforce Summons for UBS Swiss Bank Account Records," DOJ Release, 02.19.2009)
And today, it's practically a foregone conclusion that capital flight is going to be found to be a significant underlying factor in the current global economic crisis. It already has. That the Justice and Treasury Departments are currently pushing for the records of 52,000 other American depositors is a very dramatic development and practically unprecedented in economic history. Corruption and rampant criminality in the financial sectors of the world are the untold story of the economic crisis, (not) brought to us courtesy of the best mainstream media that money can buy. Reform at the FCC can address this problem, partly through legislative remedies.
Sound minds have been calling for reform of IMF and World Bank policies in these matters for decades, but what have we heard since at least as early as Ronald Reagan? That, "Government isn't the solution--it's the problem." But how else are the markets to be regulated to prevent economic catastrophes that lead to a worldwide conflagration like WWII? Even now, according to most American Libertarians and Republicans, there should be little-or-no state intervention in the financial and business sectors, it's amazing and stunning in its irrationality.
"Bretton Woods System" (happy reading):http://en.wikipedia.org/wiki/Bretton_Woods_system
"Stop this timidity in ending tax haven abuse," Financial Times, 04.04.2008: http://www.ft.com/cms/s/0/63cdb642-ea03-11dc-b3c9-0000779fd2ac.html?nclick_check=1
Google's Bretton Woods Timeline (BEWARE: right-wing think tank links): http://www.google.com/archivesearch?hl=en&q=Bretton+Woods&um=1&ie=UTF-8&scoring=t&ei=0FakScDjAYzVnQf2msmYBQ&sa=X&oi=timeline_result&resnum=12&ct=title
"Swiss court blocks bank data disclosure," Radio Netherlands, 02.21.2009: http://www.radionetherlands.nl/news/international/6186235/Swiss-court-blocks-bank-data-disclosure
"Illicit Capital Flows and the Offshore Economy, Tax Justice Network, 2008: http://www.taxjustice.net/cms/front_content.php?idcat=101
"Pressure on UBS continues to weigh heavy," Swissinfo.ch, 02.24.2009: http://www.swissinfo.ch/eng/news_digest/Pressure_on_UBS_continues_to_weigh_heavy.html?siteSect=104&sid=10373856&cKey=1235504307000&ty=nd
Wednesday, April 16, 2008
The Palfrey Verdict: A Message to the "Johns"
The Washington D.C. area--The guilty verdict has an unintended consequence for some of you, particularly Senator David Vitter, Harlan Ullman, and Randall Tobias: it's now confirmed in a court of law that you all solicited prostitutes.
For most of you, the statue of limitations has expired--though this is not the case with the likes of Mark Capansky (former intern for GOP Rep. Bob Goodlatte), and Ret. Colonel Ronald Roughead, former head of the Iraqi Media Network and employee of SAIC.
A little-known fact is that former World Bank president's lover, Shaha Ali Riza, was also employed by the IMN through SAIC. It's unknown if it was during the same period that Mr. Roughead ran the operation. One has to ask the question of why Mr. Capansky and Mr. Roughead called the number of Pamela Martin & Associates in late-2005.
Was there a connection between Chris D. Baker's Shirlington Limousine with Palfrey's escort service? The verdict has only left more unanswered questions, something the "Johns" are probably relieved about. You're not out of the woods yet. Sentencing comes on July 24th. The prosecution refuses to comment on the case until after that time.
Postscript: Don't think for a moment that the possibility of a deal with the government and the defendant has escaped me. The Washington Post was saying that the sentence could end up being a mere 3-4 years. Months before my legal work, the defendant conveyed to this writer that very early-on the government offered a deal of a couple years inside, but she would have to forfeit nearly all of her assets. If it did happen, it probably occurred some time after March 20th, after of our last correspondence. Perhaps a deal of this sort went through after all? July 24th it is: I'll be barbecuing, gardening, and the rest of TCB. Know what-ah'-mean, man?
Sunday, September 02, 2007
Deborah Jeane Palfrey filing pro se "Motion for "Pretrial Conference to Consider Matters Relating to Classified Information"
"[N]o one of course ID’d them self as a member of the House of Saud, in such a situation. Folks from this part of the world [the Middle East]–unlike the Dick Morris’s in this country–do not brag or draw attention to their true identities. With this said, we had many, many clients from the Middle East; especially, prior to 9/11." --Jeane Palfrey (personal correspondence with the author, 09.02.2007)
Washington D.C.--This is a major-step in the legal predicament of the so-called "DC Madam," and one that could yield a significantly different version of the last fourteen years of American political and diplomatic history. Under "The Classified Information Procedures Act," it's possible that Ms. Palfrey and her civil attorney Montogmery Sibley Blair will be able to finally gain the right of discovery process in her case (the evidence for-or-against her). In a recent interview with Lori Price of Citizens for Legitimate Government, Palfrey dropped a real bombshell (though not to readers of this site):
My attorney, Mr. Sibley, and I, have very good reason to believe my case involves matters relating to national security and intelligence gathering operations. One has to remember I was in business in a city, which is home and host to some of the most powerful and connected men - not only in this country, but to foreign officials, dignitaries and businessmen from abroad for almost 13 years, from 1993 to 2006. Particularly, my firm was patronized by a significant number of Middle-Eastern clients over the years; most especially, prior to 9/11. I have contended from the onset and have stated accordingly on numerous occasions, that my situation has absolutely nothing to do with prostitution related issues. (www.legitgov.org, 09.01.2007)This is a large part of why this case interested this writer from the start--it's possibly part of the nexus of a submerged war between the United States and Saudi Arabia, and could involve illegal warrantless surveillance of Ms. Palfrey under the questionable stewardship of former Attorney General Alberto Gonzales at various points (though it extends-back to the tenure of AG Ashcroft).
But we all know that all roads lead to the White House in these matters, where the responsibility for all of this resides. Like most Americans who watched the airliners slamming-into the World Trade Center towers on that fateful day six-years-ago, I had to wonder "why"? "Who did it?" All these years, we've known: it was the Saudi government, utilizing middle-class nationals (a number with backgrounds as career professionals, presumably with access to power), religious fanatics.
Why is Saudi Arabia one of the most religiously fanatical Muslim nations? The answer is fairly simple. It's a form of social control in-lieu of a legitimate system of government, and the regime can be counted as a high-tech version of Medieval theocratic tyranny. There is domestic opposition within the Saudi state, and not all of it is Al-Qaeda-like groups and cells. As Dr. Noam Chomsky stated in an interview this May, ..."people don't give up." That's correct--they join Madrases and terrorists cells.
The individuals joining some of these groups are trying to take down the Saudi Royal family
and the ruling clans of Saudi Arabia in order to achieve their liberty in some fashion. They're keenly aware that without the support of the United States and other Western and international powers, this ruling system wouldn't exist. Thus begins a terrible and fateful dance, because this also plays-into how Middle Eastern politics has traditionally worked for ages: blaming the outsider rather than extending reform to the people of Saudi Arabia and the region.
For the House of Saud to continue their rule, they must both seek the support of the State Department, while simultaneously casting the United States as "the Great Satan." American intrusion into Iraq and Afghanistan is a legitimate concern for nation who has traditionally been crucial to keeping global oil prices lower. One should also reexamine the issue of American military bases in the region, one of the prime catalysts in the creation of Al-Qaeda, a rallying-call to extremism.
The Saudi hierarchy must also correctly view the invasions as a gambit by Western petrochemical interests to control oil in the region. But all this aside, when domestic problems in a Middle Eastern nation reach an apex through obvious misrule, you blame the outsider, and in our case, the guilt is certainly earned. It's not just plausible--Saudis understand better than most Americans that the regime of the Sauds wouldn't exist without the support of the State Department, Congress, and sundry other Western corporate interests. Added to this mix is that all nations have natural competing interests.
This author believes that Jeane Palfrey's legal predicament could play-into this nexus of international criminality and misrule. Particular intelligence entities are likely involved. It remains to be seen exactly how it does, but we could be seeing something akin to the unfolding of an American Profumo scandal...ora Dreyfus affair. Treason could be part of the equation. America could be having a full-on identity crisis very soon, perhaps much sooner than you think. And how much of it would we know about were it not for bumbling old George W. Bush?
The American public has a right to know its history--it's crucial to the continuance and functioning of any democracy. At-minimum, the declassification of information in the case of Ms. Palfrey will protect due process in this nation, as well as maintaining the real world security of the public with various disclosures. This new motion in her case could be a beginning into what 9/11 really means to all of us, not the spoon-fed versions. Nothing less will do. This is not about prostitution, it never was. Senator Leahy, are you listening?
Citizens for Legitimate Government, 09.01.2007: http://www.legitgov.org/dc_madam_update_010907.html
Saturday, August 25, 2007
"HOOKERGATE," RANDALL L. TOBIAS, & PAUL WOLFOWITZ: THE AMERICAN PROFUMO SCANDAL? (Repost of a June 17th, 2007 article)

Washington D.C.--In e-mails and in our interview, Ms. Palfrey compared her situation as being very much like the "Profumo" scandal, and that it might involve a government official divulging information to a sex worker who was an operative for a foreign intelligence agency (though it should be noted here that many operatives frequently work all sides). It's an incredible assertion, and Palfrey has yet to provide evidence of it. However, this writer tends in that direction as well.
The evidence could very well be in her phone records, and she's currently waiting for a decision on the gag ruling by Federal District Judge Gladys Kessler. She's been correct about the majority of her public assertions so far: just ask Randall L. Tobias. Then, there's Harlan K. Ullman, military strategist and think tank advisor, professor, author, and-then-some. He's refused to talk at all, despite the defendant's attempts to subpoena him. An examination of the Profumo affair is instructive here:
What brought Profumo down even more than his deceit of the [House of] Commons, was the startling revelation that Keeler had also slept with Eugene Ivanov, the naval attache at the Soviet embassy. It was that detail which captured world attention, notably in the United States, where the FBI compiled a detailed report called Operation Bowtie [Ed.-the FOIA link to the files is now dead]. In Britain, Profumo's downfall naturally caused a huge sensation, inflated by the establishment's crude and cruel attempts to find scapegoats for its own embarrassment. As usual, official wrath was turned on those least able to defend themselves. Stephen Ward was prosecuted for living on immoral earnings. On the last day of his trial, he killed himself with an overdose of sleeping tablets. Keeler was also tried and imprisoned on related charges. (Guardian, 04.10.2001)Tory War Minister John Dennis Profumo slept with Keeler, who slept with a Soviet spy. He might have said things to Keeler that he shouldn't have, and she may have conveyed it (accidentally?) to the Soviet Eugene Ivanov. Do we have a similar scenario here? Were federal investigators looking for something else entirely when they searched Deborah Jeane Palfrey's Vallejo home? What were 12 SWAT-equipped ("assault-rifles and masks," says one source) Howard county police doing at Brandy Britton's (former employee of Palfrey's) home when she was first arrested?
She says the authorities have unfairly singled her out, made up lies, mistreated, stalked and harassed her since Jan. 17, when a team of Howard County officers burst into her quiet suburban home and ransacked the place, breaking her belongings, upsetting her pets and arresting Britton on prostitution charges. “It sounds paranoid, but they did really serious criminal stuff,” Britton says. “They’ve broken into my house 10 or 15 times. They’ve tapped my phones. They put a tail on me and follow me everywhere.” (examiner.com, 10.26.2006)
Paul Wolfowitz's recent scandal could very well be connected to all of this: was his "girlfriend" really his beau? What is the entire background of Shaha Ali Riza? Could she be a deep cover agent for a Middle Eastern nation? There appears to be some smoke here, and it behooves us to ask the question of whether Wolfowitz compromised himself by uttering national security secrets in the presence of Ali Riza, and maybe others--could this be the real heart of this whole scandal?
Is there a connection between Wolfowitz and Tobias in all of this? Is there a connection between them and their "concerns" over the international sex trade and human trafficking? Gulf state nations like Saudi Arabia are notorious violators of such international agreements, importing sex-slaves from the region, including Southeast Asia, South Korea, and Africa. Read on.
Amazingly, the world press and everyone but the American public knew that Wolfowitz's girlfriend already worked at the World Bank before his appointment, and were reporting it widely:
Again, this was even before Wolfowitz was appointed World Bank President. Someone might want to ask Ms. Ali Riza if she's ever worked for the Saudi General Intelligence Directorate under Prince Turki al-Faisal (once Saudi Arabia's ambassador to the United States, Great Britain, and Ireland). How did Shaha Ali Riza--a British subject at the time--obtain security clearances for the State Department and the Pentagon? Is she a triple-agent? No answers appear to be forthcoming here.There is Republican pressure to reform the World Bank so that it becomes more of a facilitator for private-sector involvement and less of a direct intervener. Mr Wolfowitz’s girlfriend, Shaha Ali Riza, works at the World Bank. Ms Riza, who was born in Tunis and grew up in Saudi Arabia, is an ardent proponent of spreading democratic rights throughout the Arabic world. Her low-key presence in Mr Wolfowitz’s life surprises critics, who assert that he masterminds a Zionist conspiracy from the Pentagon. (The Times, 03.17.2005)
Of course, much of this is connected to late-April of this year, when the Wolfowitz/World Bank scandal broke. Paul Wolfowitz had--and still has--many detractors, but there was an odd "defender": former U.S. Attorney and international law and diplomacy prof at John Hopkins, Ruth Wedgwood. Her own location puts her very close geographically to the death of Brandy Britton, as well as what could be a sprawling web-of-corruption in Baltimore involving prostitution, police corruption at the highest-levels, political warfare, and much more. Where does Wedgwood fit into all of this? On April 17th, 2007, she did something peculiar: she wrote a defense of World Bank President Paul Wolfowitz for the L.A. Times called "The Wolfowitz non-story."
The authors of this acrid affair have nakedly forgotten the standards of fairness and due process owed Riza, who is a member of the bank staff association and entitled to its fiduciary protections. And the scandal-mongers have recklessly ignored a written record of bank documents that serves not to condemn but to exculpate Wolfowitz. (L.A. Times, 04.17.2007)Oddly, a number of the facts she trots-out in the opinion piece tends towards the thesis that Ali Riza has an intelligence background. As we all know now, she was wrong about Wolfowitz on several counts, and hid her credentials as a staunch-supporter and beneficiary of the Bush administration (they appointed her as an Assistant U.S. Attorney) and Wolfowitz.
Wedgwood's article is a smokescreen, and her credibility is in-question. A reply was in-the-offing, and it came to the L.A. Times on April 30th from "Islamic Law expert and photojournalist" Sarah Whalen after angry readers pointed-out Wedgwood's connections to the Bush administration and the embattled World Bank President:
Ordinarily, expert opinions by former assistant U.S. attorneys like Wedgwood count for something. But Wedgwood, sputtered one angered reader, is biased. "For the Times to publish her column without disclosing her close ties to the Bush administration is inexcusable," scolded reader Gerald Shea. ...Wedgwood should address the real legal question facing Wolfowitz and Shaha: How did Shaha, a Libyan national with British citizenship, get her Pentagon and U.S. State Department security clearances? Sidney Blumenthal first raised this issue in his recent Guardian article, "Wolfowitz Sinking Into Endless Scandal." Shaha needed security clearances for her Wolfowitz-engineered "leave of absence" from the World Bank to her consulting job at Science Applications International Corporation (SAIC) [Ed.-This is the same intel contractor who employs Ron Roughead, found in the phone records of Pamela Martin & Associates. Emphasis added] and later to her State Department job. But she apparently didn't have them. "Who intervened?" Blumenthal asks. (L.A. Times, 04.30.2007)
Saudi Arabia has been concerned about the status of the several break-away Republics in Central Asia which are primarily Muslim. They also provide pipeline routes and sources of oil and natural gas. The aims of all of this--employing someone like Shaha Ali Riza in deep cover--would be to ascertain what the State Department's and the Pentagon's planning on these regions would entail. Whether he knew it or not, Paul Wolfowitz might have allowed a spy for MI6/MI1c/SIS/the Saudi Intelligence Directorate/etc. to have extraordinary access and clearance within these institutions. This could be some of that context:
At the same time, members of the ruling dynasty, including the directors of several big oil companies and high-ranking officers of the General Intelligence Service, were pursuing clearly practical aims. They viewed Central Asia as part of a larger region, stretching from Pakistan in the South, to the Russian Caucasus in the North. Besides the diffusion of their influence over the local Muslims, and the competition with Turkey and Iran, the Saudis were interested in participating in a greater number of regional projects for the mining and transporting of energy resources.
Not having the possibility of neutralizing the competition with the Eurasian states in the oil and gas markets, Riyadh relied on getting a share of the income from their future profits. It was with this purpose in mind that Delta Oil Company developed its activity in Afghanistan; Gulf Star company and Dallah al-Baraka Group did the same in Kazakhstan; and the Caucasian Investment Bank was established for developing work in the Caucasus (with the help of the commercial structures belonging to the Saudi billionaire, Adnan Khashoggi). Pakistani partners were actively helping the Saudis to attain their goals. (axisglobe.com, 11.30.2005)
Is this a segment of "hookergate's" genesis? Sources are telling me that it could be. Was Shaha Ali Riza a sex worker? Did she have connections to these channels? "On December 11th, 2006, then-ambassador Prince Turki al-Faisal left his post "after 15 months." ('Saudi Ambassador Abruptly Resigns, Leaves Washington." (Washington Post, 12.12.2006) Is there a connection? More later.
The Guardian on the Profumo affair (2001): http://politics.guardian.co.uk/politicspast/story/0,9061,471383,00.html
The Washington Post on the suicide of Brandy Britton (and a curious admission on their part),01.30.2007: http://www.washingtonpost.com/wp-dyn/content/article/2007/01/29/AR2007012900654.html
The Times on Shaha Ali Riza, March 17, 2005: http://www.timesonline.co.uk/tol/news/world/us_and_americas/article429379.ece
"Complete 911 Timeline": http://www.cooperativeresearch.org/timeline.jsp?timeline=complete_911_timeline
The L.A. Times' "Wedgwood piece," 04.17.2007: http://www.latimes.com/news/printedition/asection/la-oe-wedgwood17apr17,1,4026819.story
and the reply: http://www.latimes.com/news/opinion/la-oew-whalen30apr30,0,364571.story?coll=la-opinion-center
and the reply: http://www.latimes.com/news/opinion/la-oew-whalen30apr30,0,364571.story?coll=la-opinion-center
"UNDER THE SIGN OF ANDIJAN-Saudi Intelligence Versus the Pentagon: http://www.axisglobe.com/article.asp?article=506
Sunday, June 17, 2007
"HOOKERGATE," RANDALL L. TOBIAS, & PAUL WOLFOWITZ: THE AMERICAN PROFUMO SCANDAL?

Washington D.C.--In e-mails and in our interview, Ms. Palfrey compared her situation as being very much like the "Profumo" scandal, and that it might involve a government official divulging information to a sex worker who was an operative for a foreign intelligence agency (though many operatives frequently work all sides).
It's an incredible assertion, and Palfrey has yet to provide evidence of it. However, this writer tends in that direction as well. The evidence could very well be in her phone records, and she's currently waiting for a decision on the gag ruling by Federal District Judge Gladys Kessler.
She's been correct about the majority of her public assertions so far: just ask Randall L. Tobias. Then, there's Harlan K. Ullman, military strategist and think tank advisor, professor, author, and-then-some. He's refused to talk at all, despite the defendant's attempts to subpoena him. An examination of the Profumo affair is instructive here:
What brought Profumo down even more than his deceit of the [House of] Commons, was the startling revelation that Keeler had also slept with Eugene Ivanov, the naval attache at the Soviet embassy. It was that detail which captured world attention, notably in the United States, where the FBI compiled a detailed report called Operation Bowtie [Ed.-the FOIA link to the files is now dead]. In Britain, Profumo's downfall naturally caused a huge sensation, inflated by the establishment's crude and cruel attempts to find scapegoats for its own embarrassment. As usual, official wrath was turned on those least able to defend themselves. Stephen Ward was prosecuted for living on immoral earnings. On the last day of his trial, he killed himself with an overdose of sleeping tablets. Keeler was also tried and imprisoned on related charges. (Guardian, 04.10.2001)Tory War Minister John Dennis Profumo slept with Keeler, who slept with a Soviet spy. He might have said things to Keeler that he shouldn't have, and she may have conveyed it (accidentally?) to the Soviet Eugene Ivanov. Do we have a similar scenario here?
Were federal investigators looking for something else entirely when they searched Deborah Jeane Palfrey's Vallejo home? What were 12 SWAT-equipped ("assault-riles and masks," says one source) Howard county police doing at Brandy Britton's (former employee of Palfrey's) home when she was first arrested?
She says the authorities have unfairly singled her out, made up lies, mistreated, stalked and harassed her since Jan. 17, when a team of Howard County officers burst into her quiet suburban home and ransacked the place, breaking her belongings, upsetting her pets and arresting Britton on prostitution charges. “It sounds paranoid, but they did really serious criminal stuff,” Britton says. “They’ve broken into my house 10 or 15 times. They’ve tapped my phones. They put a tail on me and follow me everywhere.” (examiner.com, 10.26.2006)That sounds like overkill for a woman who was anonymously accused of soliciting sex.What were they looking for? Was it an e-mail or document(s) relating to a scenario much like that between War Minister Profumo and Christine Keeler? Who is the Christine Keeler in this case? Who is/are the Profumo(s)? This leads us to...
Paul Wolfowitz's recent scandal could very well be connected to all of this: was his "girlfriend" really his beau? What is the entire background of Shaha Ali Riza? Could she be a deep cover agent for a Middle Eastern nation? There appears to be some smoke here, and it behooves us to ask the question of whether Wolfowitz compromised himself by uttering national security secrets in the presence of Ali Riza, and maybe others--could this be the real heart of this whole scandal?
Is there a connection between Wolfowitz and Tobias in all of this? Is there a connection between them and their "concerns" over the international sex trade and human trafficking? Gulf state nations like Saudi Arabia are notorious violators of such international agreements, importing sex-slaves from the region, including Southeast Asia, South Korea, and Africa. Read on.
Amazingly, the world press and everyone but the American public knew that Wolfowitz's girlfriend already worked at the World Bank before his appointment, and were reporting it widely:
There is Republican pressure to reform the World Bank so that it becomes more of a facilitator for private-sector involvement and less of a direct intervener. Mr Wolfowitz’s girlfriend, Shaha Ali Riza, works at the World Bank. Ms Riza, who was born in Tunis and grew up in Saudi Arabia, is an ardent proponent of spreading democratic rights throughout the Arabic world. Her low-key presence in Mr Wolfowitz’s life surprises critics, who assert that he masterminds a Zionist conspiracy from the Pentagon. (The Times, 03.17.2005)Again, this was even before Wolfowitz was appointed World Bank President. Someone might want to ask Ms. Ali Riza if she's ever worked for the Saudi General Intelligence Directorate under Prince Turki al-Faisal (once Saudi Arabia's ambassador to the United States, Great Britain, and Ireland). How did Shaha Ali Riza--a British subject at the time--obtain security clearances for the State Department and the Pentagon? Is she a triple-agent? No answers appear to be forthcoming here.
Of course, much of this is connected to late-April of this year, when the Wolfowitz/World Bank scandal broke. Paul Wolfowitz had--and still has--many detractors, but there was an odd "defender": former U.S. Attorney and international law and diplomacy prof at John Hopkins, Ruth Wedgwood.
Her location puts her very close geographically to the death of Brandy Britton, as well as what could be a sprawling web-of-corruption in Baltimore involving prostitution, police corruption at the highest-levels, political warfare, and much more. Where does Wedgwood fit into all of this? On April 17th, 2007, she did something peculiar: she wrote a defense of World Bank President Paul Wolfowitz for the L.A. Times called "The Wolfowitz non-story."
The authors of this acrid affair have nakedly forgotten the standards of fairness and due process owed Riza, who is a member of the bank staff association and entitled to its fiduciary protections. And the scandal-mongers have recklessly ignored a written record of bank documents that serves not to condemn but to exculpate Wolfowitz. (L.A. Times, 04.17.2007)Oddly, a number of the facts she trots-out in the opinion piece tends towards the thesis that Ali Riza has an intelligence background. As we all know now, she was wrong about Wolfowitz on several counts, and hid her credentials as a staunch-supporter and beneficiary of the Bush administration (they appointed her as an Assistant U.S. Attorney) and Wolfowitz. Wedgwood's article is a smokescreen, and her credibility is in-question.
A reply was in-the-offing, and it came to the L.A. Times on April 30th from "Islamic Law expert and photojournalist" Sarah Whalen after angry readers pointed-out Wedgwood's connections to the Bush administration and the embattled World Bank President:
Ordinarily, expert opinions by former assistant U.S. attorneys like Wedgwood count for something. But Wedgwood, sputtered one angered reader, is biased. "For the Times to publish her column without disclosing her close ties to the Bush administration is inexcusable," scolded reader Gerald Shea. ...Wedgwood should address the real legal question facing Wolfowitz and Shaha: How did Shaha, a Libyan national with British citizenship, get her Pentagon and U.S. State Department security clearances? Sidney Blumenthal first raised this issue in his recent Guardian article, "Wolfowitz Sinking Into Endless Scandal." Shaha needed security clearances for her Wolfowitz-engineered "leave of absence" from the World Bank to her consulting job at Science Applications International Corporation (SAIC) and later to her State Department job. But she apparently didn't have them. "Who intervened?" Blumenthal asks. (L.A. Times, 04.30.2007)That's right, who allowed Shaha Ali Riza those security clearances? When we know their name(s), they're going to be leaving office. Perhaps they already have--in-part--in the person of Paul D. Wolfowitz...and possibly Randall L. Tobias. It's important to put your middle-initial in there to at least look and sound prominent. Merely sleeping with a woman does not explain Tobias's immediate departure from the State Department. What generates and motivates these kinds of scandals and the usage of "honey traps"? Usually, overarching national and strategic-aims...
Saudi Arabia has been concerned about the status of the several break-away Republics in Central Asia which are primarily Muslim. They also provide pipeline routes and sources of oil and natural gas. The aims of all of this--employing someone like Shaha Ali Riza in deep cover--would be to ascertain what the State Department's and the Pentagon's planning on these regions would entail.
Whether he knew it or not, Paul Wolfowitz might have allowed a spy for MI6/MI1c/SIS/the Saudi Intelligence Directorate/etc. to have extraordinary access and clearance within these institutions. This could be some of that context:
At the same time, members of the ruling dynasty, including the directors of several big oil companies and high-ranking officers of the General Intelligence Service, were pursuing clearly practical aims. They viewed Central Asia as part of a larger region, stretching from Pakistan in the South, to the Russian Caucasus in the North. Besides the diffusion of their influence over the local Muslims, and the competition with Turkey and Iran, the Saudis were interested in participating in a greater number of regional projects for the mining and transporting of energy resources. Not having the possibility of neutralizing the competition with the Eurasian states in the oil and gas markets, Riyadh relied on getting a share of the income from their future profits. It was with this purpose in mind that Delta Oil Company developed its activity in Afghanistan; Gulf Star company and Dallah al-Baraka Group did the same in Kazakhstan; and the Caucasian Investment Bank was established for developing work in the Caucasus (with the help of the commercial structures belonging to the Saudi billionaire, Adnan Khashoggi). Pakistani partners were actively helping the Saudis to attain their goals. (axisglobe.com, 11.30.2005)Is this a segment of "hookergate's" genesis? Sources are telling me that it could be. Was Shaha Ali Riza a sex worker? Did she have connections to these channels? On December 11th, 2006, then-ambassador Prince Turki al-Faisal left his post "after 15 months." ('Saudi Ambassador Abruptly Resigns, Leaves Washington." Washington Post, 12.12.2006) Is there a connection? More later.
The Guardian on the Profumo affair (2001):
http://politics.guardian.co.uk/politicspast/story/0,9061,471383,00.html
The Washington Post on the suicide of Brandy Britton (and a curious admission on their part),
01.30.2007: http://www.washingtonpost.com/wp-dyn/content/article/2007/01/29/AR2007012900654.html
The Times on Shaha Ali Riza, March 17, 2005: http://www.timesonline.co.uk/tol/news/world/us_and_americas/article429379.ece
"Complete 911 Timeline":
http://www.cooperativeresearch.org/timeline.jsp?timeline=complete_911_timeline
The L.A. Times' "Wedgwood piece," 04.17.2007: http://www.latimes.com/news/printedition/asection/la-oe-wedgwood17apr17,1,4026819.story
and the reply: http://www.latimes.com/news/opinion/la-oew-whalen30apr30,0,364571.story?coll=la-opinion-center
"UNDER THE SIGN OF ANDIJAN-Saudi Intelligence Versus the Pentagon: http://www.axisglobe.com/article.asp?article=506
http://politics.guardian.co.uk/politicspast/story/0,9061,471383,00.html
The Washington Post on the suicide of Brandy Britton (and a curious admission on their part),
01.30.2007: http://www.washingtonpost.com/wp-dyn/content/article/2007/01/29/AR2007012900654.html
The Times on Shaha Ali Riza, March 17, 2005: http://www.timesonline.co.uk/tol/news/world/us_and_americas/article429379.ece
"Complete 911 Timeline":
http://www.cooperativeresearch.org/timeline.jsp?timeline=complete_911_timeline
The L.A. Times' "Wedgwood piece," 04.17.2007: http://www.latimes.com/news/printedition/asection/la-oe-wedgwood17apr17,1,4026819.story
and the reply: http://www.latimes.com/news/opinion/la-oew-whalen30apr30,0,364571.story?coll=la-opinion-center
"UNDER THE SIGN OF ANDIJAN-Saudi Intelligence Versus the Pentagon: http://www.axisglobe.com/article.asp?article=506
Monday, May 07, 2007
ABC AND HOOKERGATE: WHAT YOU DON'T KNOW
"Their names won't mean anything to our audience. They just weren't newsworthy enough." --ABC journalist, Brian Ross last week.
Washington D.C.--ABC has quashed the story for-the-moment, but it isn't going to go-away anytime soon. It's been going on since October of 2006. What most of the public doesn't know is: D.C. madame Deborah Jeane Palfrey only gave them four years of her phone records, covering 2002-2006.
This leaves 9 years of records that cover 1993-2001, the Clinton years, and the years of increased GOP control in Congress. Remember how they said they were "going to clean-up Washington"? Palfrey, the Bush administration, and Mark Foley are putting that myth to bed forever. "The D.C. madame" also has the potential to do serious damage to Sen. Hillary Clinton's bid for the White House, and there are certainly interested parties.What's galling about the ABC piece is the assertion that because we don't know the names of everyone involved through instant name-recognition, that it "isn't newsworthy," and so we're supposed to trust the judgments of journalist Brian Ross and his producers at the network.
This writer doesn't buy it, but it's possible that Ross and ABC have decided to release the information slowly. They should be given some credit, however, since they've released the names of at least four prominent-individuals from the records, Randall Tobias and Dick Morris being the biggest fish so far. Ross hinted at some of the strategy, and it's certainly a smart one:
Instead, he said, "what we really wanted to do is demonstrate the range of official Washington" involved with the escort service. Their positions, as described by Ross, made them important, at least by the capital's standards: A federal prosecutor, who recently died. A handful of military officers, including the head of an Air Force intelligence squadron. A senior official at the World Bank [Ed.-my emphasis.]. But their relative anonymity spared them exposure as a result of the decision by Ross, "20/ 20" Executive Producer David Sloan and Senior Vice President Kerry Smith. Ever since Deborah Jeane Palfrey, who is fighting federal prostitution-related charges, gave ABC the last four years of her phone records on March 15 (Washington Post, 05.05.2007)No word on whether there were any ABC execs on the list. A "senior official at the world bank" is extremely significant, and begs-the-question of whether there are numerous other faceless "insiders" we should know about. Considering the behavior of the press in the last six years, ABC cannot be taken at their word on this one.
It's likely that Ms. Palfrey is shopping her information around, including outlets on the internet, and she's not concerned about money for the other nine years of phone records. Considering her actions so far, it's very likely that the D.C. madame has a lot more documentation. If she doesn't, she's basically sunk. On the ABC interview, she made-it-plain she has no intentions of serving time without a swath of revelations coming as retribution. Today, Palfrey's defense fund site wouldn't load any of its text present there before Friday's broadcast [Ed.-It could easily be my great dial-up connection!].
Also on this day, Palfrey has been granted a new attorney, after her request to replace federal public defender A.J. Kramer (her court appointed lawyer) with other court appointed representation.
A federal judge has appointed Preston Burton to represent Deborah Jeane Palfrey in her federal racketeering and money laundering case. Burton tells WTOP, "I've just been on the case for 20 minutes so I don't have much to say yet." Burton represented Monica Lewinsky during the President Clinton impeachment, and he's represented the FBI's Robert Hanssen and former CIA agent Aldrich Ames in their spying cases. (WTOP Radio, 05.07.2007)Palfrey probably knew that it wasn't going to be easy releasing the names of her prominent clients, and that class loyalties and careerism were going to be her greatest obstacles in disseminating their identities to aid in her defense. This is definitely the reason she only gave ABC just four years of those records--their assertion that "the revelations are dull" only covers four of thirteen years of her "Pamela Martin & Associates" escort business.
It should be noted that identifying lobbyists (covering both parties), World Bank & IMF executives, and military officers is hardly "dull." It's damage control to cover-up for a system of rewards in Washington, and Palfrey continues to be a threat. It would be unsurprising if she met a convenient "accident," and that anything is possible with this scandal when the stakes are this high. [Ed., 08.24.2008--A contention I no longer stand by, barring the release of new evidence.] Ms. Palfrey is that loose-cannon that Washington insiders have always feared would come along. It doesn't matter if the public knows who these people are (instant name-recognition). The fact is that they're going to slink-away while the prostitutes take the legal bullets, just as they always do under our absurd laws surrounding the profession.
Those on the lists and records should be afraid, she's ruthless about her survival and isn't going to be a victim, as she asserted on last-Friday's 20/20 segment. Consider that her statements almost totally contradict those of Brian Ross and ABC, and you begin to understand that both-sides are lying and telling the truth. [Ed., 08.24.2008--This has proven to be true.] The trick is figuring-out when and where they're doing it, and context is everything in this game of chess.
In case you thought Friday's 20/20 piece was the end of this story, check http://www.wsradio.com/ in the intervening-weeks for new interviews with Ms. Palfrey:
Palfrey and the Internet radio station wsRadio.com will auction tapes of five one-hour interviews with her next week, The Washington Post reported for Friday's editions. The bids will start at $5,000 (euro3,700). The station's president, Chris Murch, would not disclose details of the contract to the newspaper but said Palfrey will donate 10 percent of the proceeds to charity. (AP, 05.03.2007)So, there's more to come. It's entertaining watching prominent individuals sweat in this iniquitous system, and Palfrey seems to understand that the public wants blood at this particular historical moment. It might just be a female "pimp" that brings the behaviors of certain sectors of American public life into-line, making them accountable under the same rules as the rest of us. It would certainly be a bourgeois-hoot (thanks Shawn).
For reasons of Alpha male accountability, feminists should be coming to her aid. Certainly, there are feminists who support her, but it needs to become substantial and visible. Or do they really admire the uberdaddies? ABC isn't telling the whole story, and there has been some very genuine back-peddling. http://www.loftydonkey.com/ are claiming that Grover Norquist is on Deborah Jeane Palfrey's list, and they might be correct. Whatever the case, one should be suspicious of any claims that the story is over, and should be viewed as attempts at shifting-the-focus away from the scandal to keep it from widening as it naturally should.
It should also be noted that in teasers, public statements, and promotion for the 20/20, Brian Ross and ABC have stated "the White House is involved." Of course it is, we just saw Randall Tobias--a Bush appointee--fall over a week ago. Surely, most politicians and lobbyists in Washington D.C. knew of Ms. Palfrey's escort service, and many of them were returning customers. It's hardly over, and neither is the public's hunger for accountability and blood. I can sense the tar and feathers being prepared now...
The Washington Post, 05.05.2007: http://www.indystar.com/apps/pbcs.dll/article?AID=/20070505/LOCAL19/705050521/-1/ZONES04
WTOP on Palfrey's new legal representation: http://www.wtopnews.com/index.php?nid=25&sid=1134534
AP, 05.03.2007: http://www.nwfdailynews.com/article/4197
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