vrijdag 14 juli 2017

World war 3 is coming...



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World war 3 is coming...



Although there has been no major combat between the great powers since the Second World War, there are three key fronts emerging that make the prospect of a third global conflict alarmingly conceivable

Youssef El-Gingihy

world-war-3.jpgFuture conflict could take the form of another cold war or even a conventional hot war, as opposed to thermonuclear Rex

The prospect of a global conflict – World War III if you like – appears somewhat unthinkable. Since the Second World War, there has been no major war between the great powers. The original post-war European project was based around peace, social justice and harmony. The unravelling of this project, accompanied by rising nationalism, is likely to exacerbate the dangers of war on a continent with a fraught history of bloody conflict.
In the 20th century, both world wars were unanticipated. Christopher Clark’s much acclaimed The Sleepwalkers: How Europe Went to War in 1914 – published in timely fashion for the centenary of First World War – charted Europe’s unexpected descent into war. First World War had been preceded by a prelude of serenity – the long 19th century of relative peace and stability. The great powers of Edwardian Europe had been engaged in diplomacy and trade prior to the onslaught of carnage.
During the 1930s, the major powers were keen to avert another war hence the policy of appeasement, the initial reluctance of the US to become involved and the Nazi-Soviet pact. Neville Chamberlain’s ill-fated announcement of “peace for our time” should be viewed in this context. Throughout the Cold War, the concept of a third world war was inextricably associated with nuclear war and the MAD doctrine of Mutual Assured Destruction.
Yet it is possible that future conflict between the great powers may take the form of another cold war or even a conventional (as opposed to thermonuclear) hot war. In the 21st century, there are three key fronts emerging as the loci for future wars. The first is the Europe-Russia front with a new cold war triggered by the Ukrainian conflict. The second is the Middle East cauldron centred around Isis and the Syrian war. The third is the Asia-Pacific front with a face-off between the United States and China.
Cold War II
Time magazine – the original Cold War mouthpiece of the American establishment – trumpeted the start of Cold War II in 2014. Western powers have characterised Vladimir Putin’s incursions into Georgia in 2008 and lately Ukraine as aggressive expansionism. Evidently the irony of the US casting aspersions around violation of national sovereignty, in light of the folly of the Iraq war, seems to have been lost. The realist perspective – as articulated by John Mearsheimer in the pages of US foreign policy bible Foreign Affairs – is that the Ukrainian crisis was preceded by two decades of NATO expansionism up to the borders of Russia. This was in contravention of promises made to respect these boundaries at the end of the Cold War.
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Time trumpeted the start of the second cold war in 2014
In this view, events in Ukraine have merely been the endgame of this process. It is worth recalling that the United States did not respond amicably to Soviet interference in Cuba in the 1960s. Such arguments have been rendered somewhat academic as they are overtaken by events. Increasing deployments of troops by both Nato and Russia, dangerous confrontations and massive war games are being played out.
The European Leadership Network (ELN) think-tank produced a 2015 report entitled Preparing for the Worst: Are Russian and Nato Military Exercises Making War in Europe more Likely? The report analysed recent war games including a Russian exercise involving 80,000 military personnel and a set of Nato war games comprising 15,000 personnel.
It went on to say that, “Both exercises show that each side is training with the other side’s capabilities and most likely war plans in mind... Whilst spokespeople may maintain that these operations are targeted against hypothetical opponents, the nature and scale of them indicate otherwise. Russia is preparing for a conflict with Nato, and Nato is preparing for a possible confrontation with Russia.”
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Mikhail Gorbachev and Ronald Reagan were able to improve US Russia relations but will the same be able to be said of Vladimir Putin and Donald Trump? (Getty)
Recently, the US has stationed troops in Poland in the largest deployment of American troops in Europe since the end of the Cold War. As reported, these US troops will also, “fan out across other eastern European states, including Estonia, Bulgaria and Romania”. Russia alarmed the Baltic states by, “moving nuclear-capable Iskander-M missiles to its naval base at Kaliningrad in the autumn”.
According to the New York Times, an American missile shield is, “to be built in Poland mirroring one already in place in Romania”. Whether Trump’s attempted rapprochement with Russia defuses the situation remains to be seen. If the cold warriors in the Atlanticist defence establishment and hard-liners on the Russian side have their way, then tensions are only likely to be ratcheted up.
Middle East geopolitics
The intrepid German author Jürgen Todenhöfer took the concept of embedded journalism to a whole new level by holing up with Isis. He points out that in the immediate aftermath of 9/11, there were only a few hundred Islamist fighters in the Hindu Kush mountains. Fast forward through 16 years of the war on terror costing some $4,000bn (£3,300bn) and leaving 1.3 million dead, according to Physicians for Social Responsibility, and the number of terrorists is currently about 100,000. Even on its own terms, the war on terror has been an abysmal failure. How on earth did this happen? Retired US General Wesley Clark revealed that, in the wake of 9/11, the Pentagon drew up plans to attack 7 countries.
These plans have been adhered to with remarkable fidelity with Western involvement in Iraq, Syria, Libya, Afghanistan, Pakistan, Somalia and Yemen. The pretext may have been terrorism but the intention was to guarantee economic and military supremacy in the region. Many critics argued that the Iraq war was fundamentally about the opening up of state assets to global capital. Naomi Klein reported that the reconstruction of Iraq was estimated to have been worth about $100bn to the US economy. In the process, Iraq was transformed from a secular dictatorship into a Jihadist safe haven. Donald Rumsfeld’s decision to disband Saddam Hussein’s Baathist army led to chaos and now makes up a significant component of Isis.
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Intelligence predicted that the Iraq war would lead to the amplification of Islamist terrorism (Getty)
The deliberate stoking of tensions through a US sponsored sectarian Shia-led Iraqi government was notable. This ultimately led to the Sunni backlash and the spawning of al-Qaeda in Iraq. This is a hallmark of colonial-era tactics of divide and rule. In fact, British and American intelligence predicted that the Iraq war would lead to the amplification of Islamist terrorism.
Back in 2007, the veteran investigative journalist Seymour Hersh posited in an extended New Yorker essay, The Redirection, that US Middle East geopolitical strategy was directed against the regional superpower of Iran and its Shia sphere of influence extending through Syria and to Hezbollah in Lebanon. Hersh has since elaborated, in a series of controversial London Review of Books essays, that the overthrow of Bashar al-Assad would have severed this Shia sphere. Following the destruction of Iraq, this sphere remained the only obstacle to US full-spectrum dominance of the world’s largest oil fields.
The Syrian war has seen allies – Saudi Arabia, Qatar and Turkey – arming and funding radical Jihadist groups, such as the al-Nusra front. Former Vice President Joe Biden – renowned for bloopers – frankly admitted as much to a Harvard audience. The Wikileaks disclosures of Hillary Clinton’s emails revealed that she too was aware of Saudi and Qatari governments arming Isis. In realpolitik, the ends apparently justify the means.
Hersh elaborates on how British and American intelligence have been enmeshed with the use of CIA front companies in an arms pipeline from Libya to Syria dubbed the “rat line”. It was under these conditions that the mutation into the Frankenstein monster that is Isis took place. In fact, a 2012 Defence Intelligence Agency memo had anticipated the rise of Isis and its establishment in Syria in order to “isolate the Syrian regime, which is considered the strategic depth of the Shia expansion”.
The terrorist attacks in Europe have demonstrated the difficulty in containing the spill-over from these policies. The Syrian war has seen the return of great-power politics with the involvement of Russia. This contamination has the potential for a wider conflict in which western countries could be drawn in. One possible trajectory is that a Sunni-Shia war along the Saudi-Iran axis looks increasingly likely. Yet this destabilisation of Iraq and Syria may well have been engineered deliberately.
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A recording of an Isis suicide bombing in al-Bab was sent out on propaganda channels last week
According to Nafeez Ahmed, documents from the Rand Corporation and US private intelligence firm Stratfor confirm this picture. An incendiary report, authored by no less than former Bush Vice President Dick Cheney and former deputy Defence Secretary Paul Wolfowitz, envisioned ethno-sectarian partitioning of Iraq. All in all, this could represent a new Sykes-Picot (the post Ottoman empire settlement) or redrawing of the Middle East carving it up into smaller, weaker territories, which are more pliable.
Back in the 1990s, the political scientist Samuel Huntington made some dire predictions of a clash of civilisations. Even in the wake of 9/11, such apocalyptic theories appeared quaint; now they no longer seem absurd. Isis directives aim to create more violence and chaos with the obliteration of the “grey zone” of multicultural societies, in which non-Muslims and Muslims live side by side, forcing Muslims to join the “caliphate”. Ironically, US policy is doing Isis’s work for them and, in another bizarre twist, it seems that Isis is aiding US geopolitical strategy.
Asia Pacific
Ghost Fleet: A Novel of the Next World War is an intelligent thriller written by PW Singer and August Cole, both of whom have national security expertise. Ghost Fleet imagines what a 21st century world war might look like pitting the US, China and Russia against each other complete with cyber-warfare, robotics and drones. But could this nightmarish fiction turn into dystopian reality? 
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China’s Liaoning aircraft carrier conducts a drill in the South China Sea (Reuters)
During the Obama administration, the Pentagon pursued the pivot to Asia aiming to transfer 60 per cent of naval bases to Asia. The US also strengthened alliances with Japan and other Far East partners to “contain” China. Economically, the US pursued the Trans-Pacific Partnership (TPP) – a massive trade agreement, which would have deliberately excluded China. Admittedly, a Trump executive order indicates imminent withdrawal from TPP. In recent years, tensions have been mounting between China and Japan.
Both sides are now equipped with vertical take-off aircraft. There have also been a series of stand-offs between the US and China in the South China Sea. The US is currently installing a missile defence system in South Korea prompting China to warn of a new atomic arms race in the region. A recent US taskforce report unsurprisingly concluded that America and China are on a dangerous collision course.
The Trump transition is likely to exacerbate US-China tensions. Trump has threatened a trade war with China. While his chief strategist Steve Bannon stated in March of last year that, “We’re going to war in the South China Sea in five to 10 years…. There’s no doubt about that.” If there is a coherent philosophy of Trumpism then it is represented by the ideology of Bannon. Bannon subscribes to the Huntingtonian idea of a coming clash of civilisations between west and east with the Orient bracketing both China and Islam.
Bannon views China and Islam as expansionist threats. He has also stated that the Judaeo-Christian west is, “at the beginning stages of a global war against Islamic fascism” and that, “We’re clearly going into, I think, a major shooting war in the Middle East again.” China will eventually overtake the US in economic terms but US supreme military dominance is unchallenged. This is a dangerous discrepancy as it means that the US will use this military power to guarantee its economic prerogative – particularly as a massive national security apparatus now seems to dictate US foreign policy. As Obama has put it, the US is exceptional because it acts.
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People watch a news report on North Korea’s first hydrogen bomb test (Getty)
This would be in keeping with the default operational mode of capitalism. One might even argue that capitalism often resolves systemic economic crises through war. After all, a war economy with militarisation, mobilisation, full employment and jingoism can be viewed as the ultimate solution to economic woes and social unrest. The transition of Western democracy to oligarchy and the descent into soft fascism is under way. Citizens will need to participate actively, rather than as passive consumers, to demand an end to this cycle of violence from governments and to defend the assault on democratic processes. We can only hope that British foreign secretary Sir Edward Grey’s refrain on the commencement of First World War – “The lamps are going out all over Europe, we shall not see them lit again in our life-time” – will not be repeated in ours. But the omens are not good. As the late Eric Hobsbawm put it, the old century has not ended well.

woensdag 12 juli 2017

JARED KUSHNER TRIED AND FAILED TO GET A HALF-BILLION-DOLLAR BAILOUT FROM QATAR





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JARED KUSHNER TRIED AND FAILED TO GET A HALF-BILLION-DOLLAR BAILOUT FROM QATAR





By Ben Walsh, Ryan Grim, Clayton Swisher




July 10 2017, 5:25 p.m.

NOT LONG BEFORE a major crisis ripped through the Middle East, pitting the United States and a bloc of Gulf countries against Qatar, Jared Kushner’s real estate company had unsuccessfully sought a critical half-billion-dollar investment from one of the richest and most influential men in the tiny nation, according to three well-placed sources with knowledge of the near transaction.

Kushner is a senior adviser to President Trump, and also his son-in-law, and also the scion of a New York real estate empire that faces an extreme risk from an investment made by Kushner in the building at 666 Fifth Avenue, where the family is now severely underwater.

Qatar is facing an ongoing blockade led by Saudi Arabia and the United Arab Emirates and joined by Egypt and Bahrain, which President Trump has taken credit for sparking. Kushner, meanwhile, has reportedly played a key behind-the-scenes role in hardening the U.S. posture toward the embattled nation.

That hard line comes in the wake of the previously unreported half-billion-dollar deal that was never consummated. Throughout 2015 and 2016, Jared Kushner and his father, Charles, negotiated directly with a major investor in Qatar, Sheikh Hamad bin Jassim al-Thani, known as HBJ for short, in an effort to refinance the property on Fifth Avenue, the sources said.

Trump himself has unsuccessfully sought financing in recent years from the Qataris, but it is difficult to overstate just how important the investment at 666 Fifth Avenue is for Kushner, his company, and his family’s legacy in real estate. Without some outside intervention or unforeseen turnaround in the market, the investment could become an embarrassing half-billion-dollar loss. It’s unclear precisely how much peril such a loss would put Jared’s or his family’s finances in, given the opacity of their private holdings.

HBJ, a former prime minister of Qatar who ran the country’s $250 billion sovereign wealth fund, is a billionaire and one of the world’s richest men. He owns a yacht worth $300 million called Al Mirqab, the same name he gave to the private investment firm that Kushner pitched. The former emir of Qatar summed up HBJ’s power with a quip: “I may run this country, but he owns it.”

HBJ ultimately agreed to invest at least $500 million through Al Mirqab, on the condition that Kushner Companies could raise the rest of a multibillion refinancing elsewhere. The negotiations continued long after the election, carried out as recently as this spring by Charles Kushner. “HBJ basically told them, we’re good for 500, subject to a lot of things, but mainly subject to you being able to raise the rest,” said one source in the region with knowledge of the deal. The talks were confirmed by two additional sources with knowledge of the talks. One of those sources claimed that the potential deal was not contingent on the rest of the money being raised and that the HBJ investment was on hold as the overall structure of the financing was reconsidered. None of the sources would agree to talk on the record about a private financial transaction that has until now remained a secret.

After the election, Kushner Companies found many more suitors interested in doing business, one of the sources, who is U.S.-based, said. One of the investors taking the deal more seriously in late 2016 and early 2017, the U.S. source said, was “Hamid bin what’s-his-name,” referring to HBJ. Top executives at Kushner Companies, the source said, “are dumb enough to not know that why they want to deal with them has nothing to do with the real estate. Around the New Year they were like, ‘LPs” — industry slang for limited partners, or investors — “are engaging more!’ It’s like, I wonder why?”

Or, perhaps, they know quite well what’s going on. The $500 million still left the Kushners far short, and to try to fill the financing hole, the company turned to China. An insurance firm there with close ties to the country’s ruling elite had been pursued for months, but, like the other investors, wasn’t truly interested in the deal until after the election. (A source familiar with the dealmaking said that the Kushners had been in discussions with HBJ since before Trump announced his candidacy in June 2015. When a potential deal with Anbang was first reported by the New York Times in January 2017, company spokeswoman Risa Heller said the talks began “well before the president-elect’s victory,” right around when he officially sealed the Republican nomination.)

White House spokeswoman Hope Hicks referred questions to Kushner Companies; a spokesman there declined The Intercept’s request for comment. HBJ declined to comment.

In March, the details of the talks between Kushner and the firm, Anbang, became public. Anbang would invest $400 million in the project and the Kushners would put up $750 million, and additional investors, of which The Intercept’s sources say HBJ was to be one, would contribute a total of almost $2 billion more, according to a document being shown to investors that was shared with Bloomberg. The investment would have fit a trend of increasing Qatari investment in New York City real estate: Qatar’s sovereign wealth fund, which HBJ used to run, has increased its investment in New York City real estate in recent years, and HBJ has a number of property investments in London and New York.

Anbang’s $400 million, plus $100 million from other investors, would flow to the Kushners, meaning the family would recoup the entirety of their initial $500 million investment, a startling turnaround given that the New York Times’s detailed analysis of the building’s woes found the Kushners’ investment was now essentially worthless.

Crucially, in addition to the cash investment, the deal called for Anbang to take out a $4 billion loan to finance the demolition of the current building and the construction of an 80-story Zaha Hadid-designed residential and retail tower in its place. (The total cost for the project would be around $7.5 billion.) Only a handful of companies in the real estate business, such as Blackstone and Brookfield, are big enough to secure a loan of that size, and to date they appear unwilling to take on the level of scrutiny the deal would bring, never mind offer terms as favorable as Anbang’s. Additionally, any borrower would have to get their loan from somewhere, and one dynamic stymying the deal may be that any bank that underwrote such a loan would face just as much scrutiny for their financial and political judgment as the investor they gave it to.

Anbang pulled out after the deal was criticized as a conflict of interest, given Kushner’s role in the White House. With Anbang, and its ability to secure a $4 billion construction loan, out, the Qatari condition wasn’t met, and the Gulf deal fizzled, according to a source in the region. That chain of events was disputed by a source who said the deal between HBJ and the Kushners wasn’t dead, but on hold as the deal’s mix of loans and equity was reconsidered.

The revelation of the half-billion-dollar deal raises thorny and unprecedented ethical questions. If the deal is not entirely dead, that means Jared Kushner is on the one hand pushing to use the power of American diplomacy to pummel a small nation, while on the other his firm is hoping to extract an extraordinary amount of capital from there for a failing investment. If, however, the deal is entirely dead, the pummeling may be seen as intimidating to other investors on the end of a Kushner Companies pitch.

THE CRISIS DATES to May, when President Trump visited Saudi Arabia and met with regional leaders there, laying his hands on the now-famous orb. The Emir of Qatar met with Saudi King Salman, a high-level Qatari source told The Intercept, and it went well. “The Emir was in Jeddah before the summit, had a meeting with King Salman. King Salman did not bring up any subject about differences with Qatar,” he said. “After the summit, the Saudis and the Emirates, they thought, after signing all these contracts, they can have the upper hand in the region and they don’t want any country not to be in the same line.”

Whatever the reasoning, on June 5, a diplomatic crisis broke out, as Saudi Arabia and the UAE, along with Egypt and Bahrain, downgraded ties with Qatar, citing Qatar’s funding of terrorist organizations. Weeks earlier, the same countries blocked a number Qatari-backed media outlets citing derogatory public comments by the Emir, which Qatar insisted were fabricated and the result of a hack.

On June 6, President Trump took sides, taking credit for the moves by the Gulf nations.

During my recent trip to the Middle East I stated that there can no longer be funding of Radical Ideology. Leaders pointed to Qatar – look!

— Donald J. Trump (@realDonaldTrump) June 6, 2017


So good to see the Saudi Arabia visit with the King and 50 countries already paying off. They said they would take a hard line on funding…

— Donald J. Trump (@realDonaldTrump) June 6, 2017

…extremism, and all reference was pointing to Qatar. Perhaps this will be the beginning of the end to the horror of terrorism!

— Donald J. Trump (@realDonaldTrump) June 6, 2017

On June 9, after Saudi Arabia and the UAE had begun to blockade Qatar, Secretary of State Rex Tillerson sought to calm nerves, calling for mediation and an immediate end to the blockade.

Within hours, Trump, at a White House ceremony, contradicted Tillerson, slamming Qatar again and claiming it had “historically been a funder of terrorism at a very high level.”

Trump’s White House remarks, Tillerson came to believe, had been written by UAE Ambassador Yousef Al-Otaiba and delivered to Trump by Jared Kushner.

The blockade continued. At a private fundraiser in late June, he aimed at Qatar again, this time mocking the pronunciation of the country’s name. “We’re having a dispute with Qatar — we’re supposed to say Qatar. It’s Qatar, they prefer. I prefer that they don’t fund terrorism,” he quipped, according to an audio recording of his speech obtained by The Intercept.

THE KUSHNERS’ PURCHASE of 666 Fifth Avenue for a record-breaking $1.8 billion in 2007 was a capstone to an era marked by high prices and reckless amounts of debt. The Kushners invested $500 million in the building, and took out debt to cover the rest. But even at the height of a bubbling New York real estate market, there were clear signs that the price was too high and the debt was too much. The Kushners paid $1,200 a square foot, twice the previous per square foot record of $600, while records show that even with the building initially almost fully rented out, revenue only covered about two-thirds of the family’s debt costs.

When the financial crisis hit, rents went down, vacancies went up, and the Kushners were short on cash to pay their debts. They sold off the Fifth Avenue retail space for $525 million and used the proceeds to pay off non-mortgage debt on the building. Then, in 2011, the Kushners sold off just under 50 percent of the building’s office space to Vornado, as part of a refinancing deal with the publicly traded real estate giant.

The $1.2 billion interest-only mortgage is due in February 2019. The office space is worth less than its mortgage and “there is no equity value” left in the office section of the building, Jed Reagan of Green Street Advisors told the New York Times in April. (Because they sold the retail space to make payments on other debt tied to the building, the office space is the only part of the tower the Kushners still have a stake in.) As a result, the family’s initial $500 million investment, once heralded as an example of Jared’s emergence as a brash real estate star, has for now effectively been wiped out. A massive refinancing and construction of a new tower that dramatically increases the building’s value is one way to try to get out of that hole.

The Kushners are also looking for loans totaling $250 million to pay off debt used to build an apartment building in Jersey City, Bloomberg first reported in June. The tower, called Trump Bay Street, was financed in part by Chinese investors. Those investments were made through the E5-B visa program, which gives green cards to wealthy foreigners in exchange for investments in the U.S. The family also owes CIT Group $140 million, which it must repay by September. A company spokesman later confirmed to the New York Times that it was indeed seeking the $250 million loan.

The Kushners came under fire in May when the New York Times reported that Jared’s sister Nicole Meyer had pitched her family’s ties as part of a roadshow to raise money for another Jersey City building under the same pay-for-residency visa program. After the report, the family backtracked and said they would not take part in the roadshow going forward.

Meanwhile, the water is rising on the Fifth Avenue investment. And the blockade continues.

Had the Qataris known where things were heading diplomatically, said the source in the region, they’d have happily ponied up the money, even knowing that it was a losing investment. “It would have been much cheaper,” he said.

donderdag 6 juli 2017

Noam Chomsky: 'Urgent and dedicated action' needed to defeat 'existential threat' posed by Donald Trump




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Noam Chomsky: 'Urgent and dedicated action' needed to defeat 'existential threat' posed by Donald Trump


Renowned linguist and political philosopher warns the President's position on climate change and nuclear weapons place survival of humanity at risk

d.d. 06-07=2017

trump.jpgDonald Trump's administration poses an "existential threat", Noam Chomsky has warned AFP/Getty



Donald Trump poses an "existential threat" to humanity that must be countered with "urgent and dedicated" action, Noam Chomsky has warned.
"Ridicule is not enough" to defeat the US President, said the renowned academic, who called for direct activism to combat the Republican administration's policies. 
The linguist and political philosopher identified Mr Trump's stance on global warming and nuclear weapons as the two biggest threats posed by his presidency. 
He told the New York Times: "The most important issues to address are the truly existential threats we face: climate change and nuclear war.
"On the former, the Republican leadership, in splendid isolation from the world, is almost unanimously dedicated to destroying the chances for decent survival; strong words, but no exaggeration."
Mr Trump last month announced the US would withdraw from the Paris Agreement on climate change, while on Thursday he said he was considering "severe things" following North Korea testing an intercontinental ballistic missile.
Mr Chomsky warned the President's vow to strengthen and expand the country's nuclear arsenal, coupled with global tensions, "poses extraordinary dangers".
He said: "In these cases, citizen action can reverse highly dangerous programmes. It can also press Washington to explore diplomatic options - which are available - instead of the near-reflexive resort to force and coercion in other areas, including North Korea and Iran."
He added: "There are in fact many ways to combat the Trump project of creating a tiny America, isolated from the world, cowering in fear behind walls while pursuing the Paul Ryan-style domestic policies that represent the most savage wing of the Republican establishment."
Referencing Mr Trump's position on climate change, Mr Chomsky said: "The performances are so utterly absurd regarding the 'post-truth' moment that the proper response might best be ridicule."
But he added: "Ridicule is not enough. It’s necessary to address the concerns and beliefs of those who are taken in by the fraud, or who don’t recognise the nature and significance of the issues for other reasons.
"Beyond that, what is needed is action: urgent and dedicated, in the many ways that are open to us."
A leading psychiatrist warned in May that Mr Trump's mental health posed an "existential threat" to the world because of his power to launch nuclear weapons.
John Zinner said the President's inability to feel guilt made humanity “vulnerable” to his “inner rage”. 
Stephen Hawking has warned that Mr Trump's decision to withdraw from the Paris Agreement, signed by nearly 200 nations, could “push the Earth over the brink” to a point where global warming is “irreversible”

woensdag 28 juni 2017

Meet the Soopa Doopa branding agency that delivered Brexit



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Meet the Soopa Doopa branding agency that delivered Brexit


How did all of the different Leave campaigns stumble upon the same obscure branding agency in Ely, if they weren't working as a coordinated campaign? 
The offices of Soopa Doopa branding. Credit: Adam Ramsay.

We didn’t expect to end up in a suburban street in Ely. But then, we didn’t expect to find a Saudi prince or a Danish ‘private banker’ embroiled in the Democratic Unionist Party’s Brexit dark money. We didn’t expect a connection with a Bengali gun-running incident. Or that the Tories would end up relying on the DUP to secure a wobbly majority. So a quiet corner of Cambridgeshire was hardly the biggest shock.
Each of the different campaigns to leave the EU was meant to be a separate organisation.
We went to Ely to find out more about Brexit, and how it was bankrolled. You see, each of the different campaigns to leave the EU was meant to be a separate organisation. You can’t simply set up a new front every time your current one is approaching its spending limit. And we know they are all different. The two main ones - Vote Leave and Leave.EU - had a massive fight, that was reported all over the media. And the DUP has been very clear with us that there was no co-ordination between their campaign and the others.
But what’s also true is that all these different campaigns used the same obscure branding agency. Over the course of the final few weeks of the referendum, the Electoral Commission Website tells us, Arron Banks’ Leave.EU, the official Vote Leave campaign, Grassroots Out, Ukip and the Democratic Unionist Party collectively spent over £800,000 with Soopa Doopa, a branding agency based, you guessed it, in the tiny Cambridgeshire city of Ely.
As part of their Brexit campaign, the DUP spent almost £100,000 with Soopa Doopa, buying 15,000 Corex Boards, 5,000 bags, 100,000 window stickers, 7,000 t-shirts and 50,000 badges. On BBC Northern Ireland, the Stephen Nolan Show recently asked its listeners if they had seen any of the DUP branded Brexit material. openDemocracy did spot some of this, but not in Northern Ireland – in Edinburgh
Meanwhile, Leave.EU spent £20,652.25 with Soopa Doopa, Grassroots Out £42,000, Ukip £18,000, and Vote Leave £637,108.80. In the whole of 2014-15, Soopa Doopa had a turnover of just three-quarters of a million pounds. 
It’s been revealed before – partly by us, and partly by the excellent Carole Cadwalladr – that the various different Brexit campaigns all used the same obscure data analytics company: the Canadian firm Aggregate IQ. The campaigns dismissed this as coincidence. DUP’s campaign manager, Jeffrey Donaldson, told us he ‘couldn’t remember’ how he heard of them, despite spending more than £32,000 with the company. 
So we decided to head to Ely, to find out what attracted the different Brexit campaigns to Soopa Doopa. First, we went to the address listed for the firm on the Companies House website – and that turned out to be a chartered accountants, who confirmed that they were registered there. Then, we popped down to another address that’s listed in public documents as theirs. It was a house in the centre of town, between a Chinese and an Indian take-away. Someone drew the curtains when we knocked. Finally, we went to the current address listed on both their website and with the Electoral Commission.
It was on the edge of town, at the end of a terrace row, and it appeared to be empty. Nevertheless, Soopa Doopa Branding Ltd does exist. The company advertises itself as “specialists in the supply and manufacture of branded promotional products”, and its website advertises a whole range of products that you can get your logo on, through them.
When we rang the number on the site to ask if we could buy a DUP Leave campaign branded mug, the firm’s owner, Jake Scott-Paul, answered the phone. Scott-Paul seemed rather surprised when asked if this was Soopa Doopa branding, but confirmed that it was, and explained that the company itself doesn’t print things, but rather organises for their printing. And so they wouldn’t have a mug themselves: they don’t handle the actual products. He also confirmed that they had worked for the various Brexit campaigns, though claimed that “they were all one campaign”. When we asked him to clarify what he meant by that, he hung up. 
Jake Scott-Paul has been public about his support for Brexit, and among his 142 Twitter followers are senior members of the Leave movement including Arron Banks and Andy Wigmore. 
Everything you need to know is in the public domain. Those organisations came to us during the referendum and we supplied merchandise to them. That’s all I have to say really,” Soopa Doopa told us when we called back a few weeks later.
Soopa Doopa was founded in 2012, and according to the website Sourcing City News, it won two major awards at the East Cambridgeshire Business Awards last year. As the website says: 
“The judges recognised the substantial growth achieved by the company, made up of just two directors, Jake Scott-Paul and Gavin Lambert along with one part time member of staff having grown from a turnover of £750,000 in 2014-2105 to a massive £2.1 million in 2015-2016.” Nevertheless, Soopa Doopa is not on the British Promotional Merchandise Association’s list of distributors.   
Jake Scott-Paul has been public about his support for Brexit, and among his 142 Twitter followers are senior members of the Leave movement including Arron Banks and Andy Wigmore. During the campaign, Soopa Doopa’s account retweeted prominent Leave supporters, including newly promoted Brexit minister Steve Baker, showing their merchandise.
There is no suggestion that the firm did anything wrong in working for the various different leave campaigns. But what is worth asking is this: how did all of the different Leave campaigns stumble upon the same obscure branding agency in Ely? 
Under UK electoral rules, campaigners are not allowed to agree to work together unless part of a joint campaign. But the rules are less than clear cut. Discussions with other campaigners that do not involve decision making or coordinating your plans are OK, but agreeing which areas or voters to target is not. What you definitely cannot do is agree how to co-ordinate your spending with another campaigner.
“Using the same supplier for goods or services does not necessarily mean ‘working together’ is taking place. Working together is taken to be occurring when two or more campaigners have a common plan or arrangement,” the Electoral Commission said.
In public, Vote Leave and Leave.EU were frequently at loggerheads, often accusing one another of undermining the Brexit cause. But the pattern of spending by the rival Brexit camps displays a marked level of similarity, with both camps spending millions of pounds with the same firms, some of whom – like Aggregate IQ and Soopa Doopa – are hardly household names. 
Of course, one possible explanation might have been that these firms pitched their services to the campaigns, rather than the other way around. So we rang Soopa Doopa again to ask them how they got all this business, and they were clear that this isn’t what happened. As they said, before hanging up again: 
"Everything you need to know is in the public domain. Those organisations came to us during the referendum and we supplied merchandise to them. That's all I have to say really.”
Over a year on from the Brexit result, serious questions are still being raised about referendum campaign spending. Perhaps it’s time the different Brexit campaigns explained how they spent their money, and where it all came from?

The 'dark money' that paid for Brexit



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The 'dark money' that paid for Brexit


The secret cash that bankrolled Brexit, the loophole it's hiding in, and how we unravel it.
image: maselkoo99, Getty images
In the coming weeks, the Electoral Commission will publish details of how much cash the various larger campaigns threw at the European referendum. The list of big spenders will include some familiar faces: the Conservatives, Labour, the official Leave and Remain initiatives.
But there will be an unlikely name featuring among those big beasts, too: Northern Ireland’s Democratic Unionist party.
Just how much the DUP spent on Brexit remains to be seen. But the Electoral Commission have already let slip something surprising: it’s more than £250,000. And the most obvious reason that a relatively small party had so much to spend on this campaign? Because political donations in Northern Ireland are kept secret.
You might not realise it, but it’s pretty likely you even saw some of the DUP’s Brexit campaign spending. Look closely, for example, at the imprint at the bottom of these placards in Edinburgh in the week of the vote:
Leave campaigners in Edinburgh the day before the vote. 91 Dundela Avenue is the DUP headquarters. Image: Adam Ramsay
It wasn’t just a few stray leaflets or placards that the DUP paid for. On June 21, two days before the vote, the party funded a four-page wraparound pro-Leave advert in the Metro freesheet. While it’s possible to buy such adverts for as few as 10,000 issues of the paper, openDemocracy has spoken to people who saw this propaganda in editions in London, Manchester, Edinburgh, Dundee, Cardiff, and Sunderland. A UK-wide wrap around advert in the Metro costs £250,000: on its own, far more than any Northern Irish Party has ever spent on even the most significant election campaigns.
One place the advert didn’t appear is the one place the DUP stands for election: Northern Ireland. The Metro doesn’t circulate there. 
“It is safe to assume that this was the most expensive single piece of propaganda ever issued by an Irish political party,” commentator Fintan O’Toole wrote in the Irish Times.
So, why did the DUP spend so much campaigning to leave the European Union? And where did they get all the money to do so? The likely answers take you down into a loophole in UK electoral law that allows dark money to flow through Northern Irish politics, and into the British system.
Advert in the Metro - BBC, fair use

When someone else is paying...

A quarter of a million pounds is unlike anything the DUP has spent in the past. Just a month before the EU referendum, the party won 38 seats in the Northern Ireland Assembly elections and retained its position as the largest party there. To do this, they spent less than £90,000.
The 2015 general election – where the DUP won eight seats and became the fourth-equal biggest group in Westminster – cost the party only £58,000. In fact, the total combined spend of all Northern Irish political parties for the 2015 general election was just £221,143. The DUP’s most recent accounts show that its total expenditure for the whole of 2015 was £511,766, and its net assets at the end of the year were around £195,000. A bill of more than £250,000 only months later would therefore have left them bankrupt – unless they got significant extra income from somewhere.
But what’s really significant is that, because of the aforementioned loophole, we aren’t allowed to know where any such donations came from.
Of course, it’s theoretically possible that the DUP raised all of this money from its membership through raffles and crowdfunders. But it seems far more likely that the extraordinary sum spent on this ostentatious Brexit advert came from major donations. In which case we won’t have any idea who really helped to bankroll this key part of the Leave campaign. 

You see, in the rest of the UK, parties must report all donations of more than £7,500 to a national party or £1,500 to a local branch. But the names and addresses of donors to Northern Irish political parties and campaigns are not made public, ostensively because of “special circumstances”: the security situation is used as an excuse for donations to be reported to the Electoral Commission, but kept ‘sealed’, so that you and I can’t know who they are from.
The Electoral Commission has confirmed to openDemocracy that in the European referendum, where the whole country was treated as a single constituency, donations made to a Northern Irish party such as the DUP could be used to fund campaigning in Scotland, England and Wales, and yet Northern Irish secrecy laws still apply to this cash.
This means that anyone who wanted to donate to the Leave campaign without facing the public accountability required by laws in Great Britain could simply funnel money through the DUP. Whether this is just because such a donor is a bit of a wallflower, or because of something more sinister which Leave campaigners may wish to hide from the public eye, we don’t know.
There is, though, one way we could find out, which we’ll get to in a moment. But first, it’s worth looking at some of the context for all of this.

The DUP and the other Brexiteers

Whilst we don’t know how the DUP came into so much cash all of a sudden, there have been a number of claims that they were looking for money in the run up to the vote.
Arron Banks, the multi-millionaire who poured millions into Brexit, has claimed that the DUP asked for £30,000 a month over four months to back his campaign. In his book 'The Bad Boys of Brexit', Banks says he told the DUP "that's not the way we operate."
The DUP has denied Banks’ claim and insisted that the party’s EU referendum spending reflected their commitment to Brexit. DUP member of the Stormont assembly Mervyn Storey said the Metro advert was “a price worth paying”.

But many have questioned the DUP’s Brexit spending. The Metro adverts “are a donation hidden in plain sight. A very large donation was funnelled through the Northern Irish donor black hole,” says Niall Bakewell from Friends of the Earth Northern Ireland, who have long campaigned for full disclosure of political donations.
“It is hard to understand why the DUP would spend that amount of money on an advert in London or anywhere else in GB. Where are the benefits to the DUP in doing that?” Alliance party leader Naomi Long told openDemocracy.
“It is certainly possible that funds were being channeled through a party in Northern Ireland to take advantage of the veil of secrecy that surrounds our party political donations,” Steven Agnew, leader of the Northern Irish Greens, said to openDemocracy, “It would concern me greatly if it was found that ‘donor tourism’ was taking place.”

DUP corruption allegations

The shady role of the DUP in the Brexit movement adds to a long list of questions about the party’s commitment to transparency amid a series of financial scandals. A botched renewable heating subsidy scheme that could end up costing the Northern Irish exchequer upwards of £450m precipitated the collapse of Stormont earlier this year amid allegations that key advisers had close links to profiting industries. As enterprise minister in 2012, DUP leader Arlene Foster approved the creation of this Renewable Heat Incentive (RHI) scheme.

In 2010, Foster’s predecessor Peter Robinson was forced to temporarily stand aside after a BBC documentary revealed that his wife Iris Robinson – then an MP and councillor – had procured £50,000 in loans to finance a restaurant for her teenage lover. She failed to declare her interest in the business despite sitting on the council that granted its operating licence.
Last year, Ireland’s National Assets Management Agency reported its former Northern Ireland advisor, Frank Cushnahan, to police over corruption allegations related to a €1.6bn land sale. Mr Cushnahan had been appointed on the recommendation of the DUP

Northern Ireland needs transparency

Concern around political party funding in Northern Ireland has been growing. Transparency International UK has called for legislation to allow for scrutiny of political reporting by the end of this year. 

The Electoral Commission began to keep a record of donors to NI parties from 2007 but public access to this record was temporarily banned by the government. This ban, called the ‘Prescribed Period,’ was only due to last until October 2010 but its end date has been repeatedly extended.

In 2010, 77% of respondents to a Northern Ireland Office consultation supported full transparency of political donations. After that, Westminster passed a law which states that from January 2014 onwards donations made to political parties in Northern Ireland could at some point in the future be made public – including donations used in the Brexit campaign. However, under the Northern Ireland Miscellaneous Provisions Act (2014) this will not happen until the UK government judges it is safe to do so.
Which is the simplest way that we could find out where this mystery cash for the DUP's Brexit spending came from: Northern Ireland Secretary of State James Brokenshire has it within his power to simply release them.

Campaigners in Northern Ireland have long called for donor names to be published, saying they have seen no evidence to suggest that those giving over £7,500 a year to a political party are any more at risk than any other willing, partisan participants in Northern Ireland politics. Indeed, under legislation dating from 1983 the identity of those who donate money to individual election candidates can be accessed, although contributions to parties cannot.
Publicly most Northern Irish political parties, including the DUP, support ending donor secrecy but in practice only the Alliance and the Green party actually publish their donations.
openDemocracy contacted the DUP, the official Vote Leave campaign, and Aaron Banks’ Leave.EU to ask about the source of the Brexit campaign funds. The DUP didn’t get back, Vote Leave denied any knowledge and Leave.EU said that they believe, though can’t prove, that the funding came through Vote Leave.
Transparency is at the heart of democratic politics. Whatever the source of the mysterious DUP funds, voters have a right to know how one of the most significant political campaigns in recent British history was financed. Any dark money in a campaign pot poisons it all: a loophole like this allows a hiding place for any penny with an embarrassing provenance or private interest behind it. Until the funders behind the DUP campaign are fully disclosed, we should assume there is a good reason that someone doesn’t want us to know who they are. The Northern Ireland Secretary James Brokenshire has it within his powers to reveal the source of this cash. It is vital that he does so.
We have launched a petition calling on him to do just that. Please sign it, below.
"Call on Northern Ireland Secretary James Brokenshire to publish the names of all major donors to political parties in Northern Ireland, in line with campaign transparency laws in Great Britain."