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US And Israel Quietly Provide Military Support And Parts To Iran, Which In Turn Is Arming Syria | Zero Hedge

US And Israel Quietly Provide Military Support And Parts To Iran, Which In Turn Is Arming Syria | Zero Hedge.

Before the Ukraine, there was Syria. Before Syria, there was Iran. For over 30 years, Iran was the perpetual strawman of every attempt to escalate hostilities in the middle east. One only needs to recall that the original “red line” was not Obama’s but that of Israel’s PM Netanyahu referring to Iran’s nuclear program (which most likely was under the control of Stuxnet, and thus the NSA, more than it was Iran’s to begin with).

What is surprising in recent months, is how quickly in the aftermath of the Syrian failed escalation script from last summer, Iran quickly dropped off the axis of America’s worst enemies, and from the biggest bogeyman, has rapidly become a nation with which the US is eager to resume diplomatic and trade relations. Sure, Israel pretended to be angry about Iran’s ascent in the ranks of US foreign allies-to-be, and issued a few angry press releases, but that’s all it was – posturing, fit only for the front page of tabloids. It is what was happening behind the scenes that is noteworthy.

And what is happening behind the scenes is the same thing that happens every time the US (or Israel, or any other western nations) finds a surprising new ally: said ally proceeds to purchase military equipment from the US (or other western nations), using loans from the US (or other western nation banks).

Enter bizarre twist #1 – US companies selling military parts to none other than the formerly country non grata (at least until mid-2013): Iran. Reuters reports:

U.S. aerospace companies are seeking permission to sell airliner parts to Iran for the first time in three decades, in a key test of the temporary relief on sanctions given under talks to curtail Iran’s nuclear activities.

 

At least two leading manufacturers, Boeing and engine maker General Electric, have applied for export licenses in a six-month window agreed by Iran and six world powers in November, industry officials and other sources familiar with the matter said.

 

If approved, the sales would be the first acknowledged dealings between U.S. aerospace companies and Iran since the 1979 U.S. hostage crisis led to sanctions that were later broadened during the dispute over Iran’s nuclear activities.

 

A source familiar with the matter said that Boeing, the world’s biggest manufacturer of passenger jets, had also filed a request for permission to export parts to Iran.

 

Boeing declined to comment, referring questions to the U.S. State Department, which in turn referred queries to the U.S. Treasury. A spokeswoman for the Treasury Department, which enforces international sanctions, declined to comment on specific license requests or applications.

Enter bizarre twist # 2 – “GE is doing it for the kids.”

A GE spokesman said his company had been asking since 2004 for permission to provide parts and maintenance for engines for safety reasons, without profiting from the scheme. GE, the world’s largest maker of jet engines by sales, refiled its request after the sanctions relief came into force, he added.

 

“We don’t want to make a penny on it. It’s entirely for flight safety,” Rick Kennedy said, adding that GE would donate any proceeds to charity.

But of course, because when one thinks suing the US to get tax refunds corporate generosity (if not bailouts), one thinks GE.

Enter bizarre twist # 3 – it is not only the US that is seeking to promptly capitalize on this “temporary” elimination of Iran sanctions. It is Iran’s perpetual nemesis, Israel, that is not only planning to supply weapons to Iran, but is already doing so. However, unlike the US which at least has clumsily stumbled upon a detente whose only purpose is logically to get Iran to buy Made in America weapons, with Israel the hypocrisy takes on a whole new meaning. Quote the Telegraph:

Benjamin Netanyahu, the Israeli prime minister, called for increased pressure on Iran to force it to abandon a programme that Israel regards as a front for building an atomic bomb and a threat to its existence.

 

Visiting the Golan Heights on Tuesday, he accused Iran of “arming those who are carrying out the slaughter” in neighbouring Syria.  “I would like to tell the world, today, as the talks between the major powers and Iran are being resumed, that Iran has changed neither its aggressive policy nor its brutal character. Iran is continuing to support the Assad regime, which is slaughtering its own people,” Mr Netanyahu said.

And this is where it gets embarrassing for Bibi: it was Israel that was arming Iran.

[A] court in Athens has told The Telegraph that parts appearing on an American list of forbidden military-grade materials had been shipped from Israel on two occasions, apparently destined for Iran.

 

The seized items comprised spare parts for military aircraft: a constant speed drive designed for the F-4 Phantom jet, and a voltage output sensor used in the F-14 Tomcat. The parts were confiscated by Greece’s financial crimes squad and were being sent to the US for investigation, court officials said.

 

 

Israeli arms dealers twice tried to send spare parts for fighter planes to Iran, The Telegraph has established, flouting an international arms embargo and openly contradicting the bitter enmity between the Jewish state and the Islamic regime.

 

The illegal shipments are now being investigated by the US Homeland Security Department after they were intercepted by authorities in Greece.

 

The shipments – one in Dec 2012 and the other last April – were sent by courier from the Israeli town of Binyamina-Givat Ada, near Haifa, via a company in Greece, the newspaper reported. The firm was later established to be a ghost company. Its contact number was said to belong to a British national in the Greek city of Thessaloniki, who could not be traced.

Was Mossad involved? But of course.

A blogger, Richard Silverstein pointed the finger at two possible culprits who he said were well-known arms dealers living in Binyamina-Givat Ada. The pair had come to the attention of Israeli and US authorities on suspicion of violating the arms embargo on Iran in the past, Silverstein wrote, but had never been charged or prosecuted. “There can be no doubt that they are colluding with Israeli intelligence,” he added.

For those who are not convinced, “The defence and foreign ministries in Israel declined to comment on the seizures, which were first revealed by Kathimerini, a Greek newspaper. 

Finally, tying it all together, is another report from Reuters. in which we learn that “as Syria’s war nears the start of its fourth year, Iran has stepped up support on the ground for President Bashar al-Assad, providing elite teams to gather intelligence and train troops, sources with knowledge of military movements say.

This further backing from Tehran, along with deliveries of munitions and equipment from Moscow, is helping to keep Assad in power at a time when neither his own forces nor opposition fighters have a decisive edge on the battlefield.

Assad’s forces have failed to capitalize fully on advances they made last summer with the help of Iran, his major backer in the region, and the Hezbollah fighters that Tehran backs and which have provided important battlefield support for Assad.

 

But the Syrian leader has drawn comfort from the withdrawal of the threat of U.S. bombing raids following a deal under which he has agreed to give up his chemical weapons.

 

Shi’te Iran has already spent billions of dollars propping up Assad in what has turned into a sectarian proxy war with Sunni Arab states. And while the presence of Iranian military personnel in Syria is not new, military experts believe Tehran has in recent months sent in more specialists to enable Assad to outlast his enemies at home and abroad.

 

Assad’s forces have failed to capitalize fully on advances they made last summer with the help of Iran, his major backer in the region, and the Hezbollah fighters that Tehran backs and which have provided important battlefield support for Assad.

 

But the Syrian leader has drawn comfort from the withdrawal of the threat of U.S. bombing raids following a deal under which he has agreed to give up his chemical weapons.

 

Shi’te Iran has already spent billions of dollars propping up Assad in what has turned into a sectarian proxy war with Sunni Arab states. And while the presence of Iranian military personnel in Syria is not new, military experts believe Tehran has in recent months sent in more specialists to enable Assad to outlast his enemies at home and abroad.

To summarize: in an act of complete disregard for the official diplomatic song and dance, both Israel and the US are now providing military support to Iran, which in turn is providing military support to Syria, which is also getting military support from Russia. And now, just to make things more interesting, the same labyrinth of “military support” is about to be unleashed in the Ukraine, whose western half is just as likely getting arms and military equipment (not to mention funding)from the West under the table, while Russia, whose main Black Sea port is in the Ukraine’s Crimean peninsula, is arming the Eastern part of the Ukraine.

What can possibly go wrong?

China Sold Second-Largest Amount Ever Of US Treasurys In December: And Guess Who Comes To The Rescue | Zero Hedge

China Sold Second-Largest Amount Ever Of US Treasurys In December: And Guess Who Comes To The Rescue | Zero Hedge.

While we will have more to say about the disastrous December TIC data shortly, which was released early today, and which showed a dramatic plunge in foreign purchases of US securities in December – the month when the S&P soared to all time highs and when everyone was panicking about the 3% barrier in the 10 Year being breached and resulting in a selloff in Tsy paper – one thing stands out. The chart below shows holdings of Chinese Treasurys (pending revision of course, as the Treasury department is quite fond of ajdusting this data series with annual regularity): in a nutshell, Chinese Treasury holdings plunged by the most in two years, after China offloaded some $48 billion in paper, bringing its total to only $1268.9 billion, down from $1316.7 billion, and back to a level last seen in March 2013! 

This was the second largest dump by China in history with the sole exception of December 2011.

That this happened at a time when Chinese FX reserves soared to all time highs, and when China had gobs of spare cash lying around and not investing in US paper should be quite troubling to anyone who follows the nuanced game theory between the US and its largest external creditor, and the signals China sends to the world when it comes to its confidence in the US.

Yet what was truly surprising is that despite the plunge in Chinese holdings, and Japanese holdings which also dropped by $4 billion in December, is that total foreign holdings of US Treasurys increased in December, from $5716.9 billion to 5794.9 billion.

Why? Because of this country. Guess which one it is without looking at legend.

That’s right: at a time when America’s two largest foreign creditors, China and Japan, went on a buyers strike, the entity that came to the US rescue was Belgium, which as most know is simply another name for… Europe: the continent that has just a modest amount of its own excess debt to worry about. One wonders what favors were (and are) being exchanged behind the scenes in order to preserve the semblance that “all is well”?

Eric Holder Just Announced A Major Shift On U.S. Marijuana Policy

Eric Holder Just Announced A Major Shift On U.S. Marijuana Policy.

Jan 23 (Reuters) – U.S. treasury and law enforcement agencies will soon issue regulations opening banking services to state-sanctioned marijuana businesses even though cannabis remains classified an illegal narcotic under federal law, Attorney General Eric Holder said on Thursday.

Holder said the new rules would address problems faced by newly licensed recreational pot retailers in Colorado, and medical marijuana dispensaries in other states, in operating on a cash-only basis, without access to banking services or credit.

Proprietors of state-licensed marijuana distributors in Colorado and elsewhere have complained of having to purchase inventory, pay employees and conduct sales entirely in cash, requiring elaborate and expensive security measures and putting them at a high risk of robbery.

It also makes accounting for state sales tax-collection purposes difficult.

“You don’t want just huge amounts of cash in these places,” Holder told the audience at the University of Virginia. “They want to be able to use the banking system. And so we will be issuing some regulations I think very soon to deal with that issue.”

Holder’s comments echoed remarks by his deputy, James Cole, in September during a Senate Judiciary Committee hearing on Capitol Hill.

Colorado this month became the first state to open retail outlets legally permitted to sell marijuana to adults for recreational purposes, in a system similar to what many states have long had in place for alcohol sales.

Washington state is slated to launch its own marijuana retail network later this year, and several other states, including California, Oregon and Alaska, are expected to consider legalizing recreational weed in 2014.

The number of states approving marijuana for medical purposes has also been growing. California was the first in 1996, and has since been followed by about 20 other states and the District of Columbia.

But the fledgling recreational pot markets in Colorado and Washington state have sent a new wave of cannabis proprietors clamoring to obtain loans and make deposits in banks and credit unions.

The Justice Department announced in August that the administration would give new latitude to states experimenting with taxation and regulation of marijuana.

But with the drug still outlawed at the federal level, banks are barred under money-laundering rules from handling proceeds from marijuana sales even in states where pot sales have been made legal.

The lack of credit for marijuana businesses, however, poses its own criminal justice concerns, Holder said.

“There’s a public safety component to this,” he said. “Huge amounts of cash – substantial amounts of cash just kind of lying around with no place for it to be appropriately deposited – is something that would worry me just from a law enforcement perspective.”

Holder did not offer any specifics on a timeline for action on banking services for marijuana. Cole in September said the Justice Department was working on the issue with the Treasury Department’s financial crimes enforcement network.

Critics of liberalized marijuana laws have said the lack of credit faced by pot retailers was beside the point.

“We are in the midst of creating a corporate, for-profit marijuana industry that has to rely on addiction for profit, and that’s a much bigger issue than whether these stores take American Express,” said Kevin Sabet, co-founder of the anti-legalization group Smart Approaches to Marijuana. (Reporting by David Ingram in Charlottesville, Virginia; Writing by Alex Dobuzinskis; Editing by Steve Gorman and Lisa Shumaker)

Activist Post: Rand Paul Exposes the Crony Federal Reserve on the Senate Floor

Activist Post: Rand Paul Exposes the Crony Federal Reserve on the Senate Floor.

Rand Paul

HSBC Receives Slap on the Wrist for Helping to Finance Terrorists | A Lightning War for Liberty

HSBC Receives Slap on the Wrist for Helping to Finance Terrorists | A Lightning War for Liberty.

The “Too Big Too Jail” nonsense that surrounds large U.S. banks and their above the law employees has been glaringly obvious and thoroughly documented for quite some time now. Yet what represents an even larger slap in the face to millions of hard-working, law-abiding citizens, is how relentlessly the “justice” system goes after small time criminals, while merely fining oligarch thieves for far worse crimes. I first covered this theme earlier this year in my piece Some Money Launderers are “More Equal” than Others, which discussed how HSBC was caught laundering billions of dollars for Mexican drug cartels.

Well HSBC is back in the news. This time it relates to their transferring funds on the behalf of financiers for the militant group Hezbollah. If transactions such as these had even the slightest link to Bitcoin, there would be endless uproar, calls for countless Congressional hearings and demands to stop the currency at all costs. But when HSBC is caught doing it, what happens? A $32,400 settlement.

More from The Huffington Post:

A major U.S. bank has agreed to a settlement for transferring funds on the behalf of financiers for the militant group Hezbollah, the Treasury Department announced on Tuesday.

Concluding that HSBC’s actions “were not the result of willful or reckless conduct,” Treasury’s Office of Foreign Assets Control accepted a $32,400 settlement from the bank. Treasury noted, as did HSBC in a statement to HuffPost, that the violations were voluntarily reported.

Everett Stern, a former HSBC compliance officer who complained to his supervisors about the Hezbollah-linked transactions, told HuffPost he was “ecstatic and depressed at the same time.”

“Those are my transactions, I reported them,” he said, satisfied that the government was taking action. But, he added, “Where I am upset was those were a handful of transactions, and I saw hundreds of millions of dollars” being transferred.

Stern said he hopes the government’s enforcement actions against HSBC have not come to an end with the latest settlement. “They admit to financing terrorism and they get fined $32,000. Where if I were to do that, I would go to jail for life,” he said.

And the government watchdog’s claim that HSBC committed no “substantially similar apparent violations” in the past five years is likely to raise some eyebrows. In December 2012, the bank agreed to pay a $1.9 billion settlement for moving money that a 2012 Senate report found had likely helped drug cartels and a Saudi Arabian bank the CIA has linked to al Qaeda.

No one at HSBC was criminally charged for what U.S. Assistant Attorney General Lanny Breuer called at the time ”stunning failures of oversight.”The Senate report faulted the Office of the Comptroller of the Currency, an independent bureau with the Treasury Department, for weak oversight of HSBC.

You know you are a Banana Republic if…

Full article here.

 

Treasury’s deceit exposed by this ballsy government official

Treasury’s deceit exposed by this ballsy government official. (source)

October 29, 2013
Sovereign Valley Farm, Chile

Do you remember the $700 billion bailout of the financial system in 2008?

It seems these days that most investors do not. People are partying like it’s 1929… as if all the issues and challenges that plagued the banking sector just a few years ago have miraculously vanished.

This thinking is absurd, and even a casual glance at the balance sheets of so many banks in the West shows objectively that the entire system is still precariously leveraged, undercapitalized, and illiquid.

In the wake of the bailout, Congress created a special position to oversee how the funds were spent. Like anything else in government, they used an unnecessarily long name followed by a catchy acronym–

Special Inspector General for the Troubled Asset Relief Program, or SIGTARP.

(The first SIGTARP was a former federal prosecutor who had previously indicted 50 leaders of the Revolutionary Armed Forces of Colombia… just the right man to keep a watchful eye on bankers.)

SIGTARP just released its quarterly report to Congress… and it’s scatching, suggesting that “the toxic corporate culture that led up to the crisis and TARP has not sufficiently changed.”

There are some real zingers in the 518 page report, including:

  • “[F]raudulent bankers. . . sought TARP bailout dollars to have taxpayers fill in the holes on their fraud-riddled books.”
  • “Some bankers cultivated a culture of self dealing, criminally concealing that the bank was funding their luxury lifestyles, believing they were entitled to the finest money could buy. . .”
  • “They were trusted to exercise good judgment and make sound decisions. However, they abused that trust. Many times they abused that trust for their own personal benefit.”

Moreover, the report calls into question the Treasury Department’s administration of the bailout.

For example, many banks have been delinquent in making TARP payments, or payments to one of TARP’s sub-programs.

Yet while many banks are delinquent by 1-2 quarters, according to the report, roughly 3% of the banks who received funds under the Community Development Capital Initiative are more than –two years– behind in their payments.

Yet the Treasury Department has done nothing to enforce terms on behalf of taxpayers.

Most alarmingly, though, the report throws a giant red flag on the Treasury Department’s deceit.

In 2011, the report states, 137 banks took in billions of dollars of funding from the Treasury under the Small Business Lending Fund (SBLF). They then used those funds to repay their TARP loans.

In other words, they repaid taxpayer money with more taxpayer money.

But the Treasury Department still reported that TARP was being repaid, suggesting in a May 2013 press release: “Taxpayers have already earned a significant profit from TARP’s bank programs.”

Total BS, says the report.

SIGTARP writes that “Treasury should not. . . call these funds “repayments” or “recoveries”. Treasury owes taxpayers fundamental, clear, and accurate transparency and reporting on monies actually repaid.”

Something tells me this woman isn’t going to have a particularly long career in government.

And given the Obama’s administration’s track record against whistleblowers, SIGTARP had better start booking her flight to Moscow. Or better yet, marry a Brazilian.

 

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