Month: August 2022

Putin’s Plan

by Dave

There’s some very scary stuff out there. Some of this is relatively new. It is not Communism, nor Fascism, but autocracies without regard to international order and expansionary ambitions. Add in nuclear capabilities, and Russia poses a grave threat.

The Wagner Group is Putin’s secret weapon, and operates very much like a terrorist organization. More specifically, the Group looks like ISIS, which profits from captured territory and uses brutality as their weapon. In my last post, The Wagner Group was hired by the existing Central African Republic to bring the diamond mines under government control, but soon the Group was collaborating with the rebel groups to also profit from the diamond industry. So, putting the fox to guard the chicken pen, and you’ll end up without many chickens.

What goes around, comes around. That’s my first axiom. Chechnya might have seem a far off conflict in 2007 when Putin’s puppet was installed, by the name of Ramon Kadyron, in the Caucasian region, but the invasion of Ukraine, first in Crimea in 2014, then full scale invasion into Donbas in 2022 made crystal clear Putin’s game plan. Of course, prior to this, Putin had vastly increased the military strength of Russia, and their involvement in Syria was kind of a testing ground for further military interventions.

What threatens autocracies is basic civil liberties, including freedom of assembly and speech. The military is used to suppress freedoms. The judiciary system loses its independence. Belarus under President Lukashenko is a perfect example of a country in decline, due to the autocratic government. Putin had easy access to Ukraine through Belarus.

Putin’s Internet Research Agency (IRA) is another threat, and it is no question that they will use cyberattacks against its enemies, including the US and our western allies. Russia interfered in our elections in 2016, and they will do it again. It wasn’t headline news, but the “Rewards for Justice” program offer of 10 million dollars for information on Russia’s interference, as posted on July 28, 2022, is a very serious effort to deepen our understanding of this threat to us and our allies.

See link: Rewards for Justice

Next axiom. The problems with Putin are long term, and awareness instead of denial, is necessary. Also, I’ll add Biden’s axiom, which is when Russia and the US are on the same battlefield, you have World War III. I give Biden high marks on finally pulling out of Afghanistan and finding ways to keep Ukraine supplied with arms without putting boots on the ground.

During the campaign, Trump loudly proclaim that he would withdraw from Afghanistan and never did. He knew how terrible it was going to look, for the US to lose a war.

In February 2022, Russia was going to blitzkrieg Kyiv through a column of tanks entering through the northern front in Belarus. This fell apart.

I don’t know where or when the next large scale advance of Putin’s expansionary plans will be. Part of his strategy is to rebuild the Russian Federation, but it is not easily done. Belarus and Chechnya toe the line with Putin, to avoid invasion. Finland and Norway are now likely to be admitted to NATO. I congratulate Secretary of State Anthony Blinken as able to persuade Turkey not to block their admission.

Russia will continue to look at weaker or less stable countries in Africa, such as Central African Republic, Mali, Sudan, Madagascar and Libya as opportunities to intervene. These are also countries ripe for terrorists organizations. Certainly, Libya could easily be the next Syrian style proxy war involving both the US and Russia. Military forces from the US and France are assisting Niger from the threat of terrorist group, Boko Haram, which now affects Nigeria.

Keeping Ukraine alive is expensive. From Wikipedia, “On 28 April 2022, US President Joe Biden asked Congress for an additional $33 billion to assist Ukraine, including $20 billion to provide weapons to Ukraine. On 5 May, Ukraine’s Prime Minister Denys Shmyhal announced that Ukraine had received more than $12 billion worth of weapons and financial aid from Western countries since the start of Russia’s invasion on 24 February. On 21 May 2022, the United States passed legislation providing $40 billion in new military and humanitarian foreign aid to Ukraine, marking a historically large commitment of funds.”

Putin’s push requires push back, and there is not better way right now, than by helping to defend Ukraine sovereignty. All Democrat senators voted to support aid to Ukraine. Per CNN:

“Eleven Republican senators voted against final passage of the bill: Marsha Blackburn of Tennessee, John Boozman of Arkansas, Mike Braun of Indiana, Mike Crapo of Idaho, Bill Hagerty of Tennessee, Josh Hawley of Missouri, Mike Lee of Utah, Cynthia Lummis of Wyoming, Roger Marshall of Kansas, Rand Paul of Kentucky and Tommy Tuberville of Alabama.” Aid to Ukraine has become political.

Link: CNN Senate votes to pass $40 billion aid to Ukraine,

Putin’s aggressive intervention policies must be met with resistance with a coordinated response from the US and our allies. It should never become political. I strongly support all the economic sanctions levied against Russia. The US and our European allies must do everything possible to strengthen emerging democracies around the world. Every Democrat in the Senate recognized the importance of Ukraine, and seem to have a better international perspective of the dangers of Putin. So, for my part, I’m supporting Democrats in the upcoming mid-term elections.

Stay tuned,

Dave

Central African Republic and Russia

by Dave

This posting is really about Putin’s expansionary policies, and using mercenaries to gain control of countries. Central African Republic serves as just one example.

The invasion of Ukraine shows the world that Russia under Putin has little respect for international law and conventions. There are many countries which are vulnerable to Russia’s control, and Putin will take advantage of any weakness to exert maximum control. In a previous post, I explained how the leader of Chechnya, Ramon Kadyron, is essentially Putin’s puppet, through channeling funds directly to him. Two of his wives own property in Moscow, worth about 8 million dollars. So, not only can Kadyron enrich himself from stealing from his own country, being Putin’s constant ally has enormous fringe benefiits.

Central African Republic is about the same size as France. Geographically, it is located above the equator, bordered by two larger countries to the north, Chad and Sudan, and to the south, the Democratic Republic of Congo.

It is a very poor country, ranked 188 of 189 countries, based on human development. It has an abundance of mineral wealth, including gold and diamonds.

Wikipedia: Central African Republic

Russia, I believe, sees an opportunity to dominate the country due to the geographic strategic importance and mineral wealth. Plus, in a way, they were invited in. Prime Minister Touadera welcomed the assistance of the Russia’s mercenary force, the Wagner Group, to secure the diamond mines from rebel groups shortly after his election in 2014. As reported by the New York Times, updated May 4, 2020:

“But Russia’s help comes at a cost. Its representatives have struck deals with the government to mine diamonds where the trade is legal — one of many signs that Russia’s push into the country is closely tied to the profits it can reap.

Russian operatives have even partnered with murderous rebels to obtain diamonds in areas where the trade is outlawed, cashing in on the very lawlessness they have been brought in to end, according to members of the Central African government, Western officials and some of the warlords themselves.”

Links to New York Times article: Gems, Warlords and Mercenaries: Russia’s Playbook in Central African Republic (originally published September 30, 2019)

Wikipedia, Wagner Group

The link above identifies the many countries where the Wagner Group mercenaries are deployed. The “Russian operatives” are members of Russia’s Wagner group. It is headed by Yevgeny Prigozhin.

“Yevgeny Viktorovich Prigozhin[a] (Russian: Евге́ний Ви́кторович Приго́жин; born 1 June 1961) is a Russian oligarch[5] and close confidante of Russian president Vladimir Putin.[6] Prigozhin controls a network of companies including Wagner, a Russian state-backed mercenary group accused of war crimes in Africa, Syria, and Ukraine.

Further it is stated, “Prigozhin, his companies and associates face economic sanctions and criminal charges in the United States.” This is in connection to the Russian interference in US elections in 2016.

Per Wikipedia: Yevgeny Prigozhin

“In April 2022, during Russia’s 2022 invasion of Ukraine, it was reported that [Yevgeny] Prigozhin travelled to the Donbas to oversee personally Wagner Group’s campaign. He was pictured wearing military fatigues with Russian Duma member Vitaly Milonov who had travelled to the front line. In August 2022, Wagner Group began using billboards to recruit new members in Russia.

Former journalist and observer of the Group, Denis Korotkov said “It looks like they have decided that they will no longer try to hide their existence.”

Wow. Below is an AP photo of Yevgeny Prigozhin from 2016.

Wikipedia, Wagner Group

From Wikipedia, “Russian and some Western observers believe that the organization does not actually exist as a private military company but is in reality a disguised branch of the Russian MoD [Ministry of Defense] that ultimately reports to the Russian government.[133][134][135][136] The company shares bases with the Russian military,[137] is transported by Russian military aircraft,[138][139][140] and uses Russia’s military health care services.[141][142][143] The Russian state is also documented supporting the Wagner Group with passports.”

I left the reference numbers in, as these statements can all be verified. I believe CAR is going to be turned into another autocracy like Chechnya, subservient to Putin.

I also fear that Russia is using the Wagner group to gain control of Libya, through aiding Khalifa Haftar’s Libyan National Army. National elections seem to be continually postponed. Gaddafi was toppled in 2011, and now, more than a decade later, the country is divided.

See link: Libya Could Be Putin’s Trump Card

The US is offering 10 million dollars reward for information on Russia’s interference in the 2016 election. Any additional information will most likely complete the various connections among Russia’s Internet Research Agency, the Wagner Group and Russia’s chief intelligence office (GRU).

See State Department link: Rewards for Justice

Please read the State Department statement. The Mueller investigation was not fake and the US State Department is taking very seriously the threat that Russia is posing to free and fair elections in the US.

There are other ways to hit back. Mercenaries in Ukraine posted a photo of their group, and the Ukrainians were quick to identify their location, allowing them to direct a missile strike against them.

https://www.abc.net.au/news/2022-08-16/ukraine-hits-wagner-group-base/101336834

So, the intervention of CAR by the Russians using a mercenary force is not an isolated incidence, but more of their overall game plan since at least 2014. Seeking help from Putin is make pact with the devil. It guarantees that the leaders will be rich, and not have to worry about re-election. In return, the government is just a puppet regime for Putin.

Stay tuned,

Dave

Director of the FBI: Christopher Wray

by Dave

AG Merrick Garland yesterday, reminded us that the Justice Department must be unbiased, as follows:

“Faithful adherence to the rule of law is the bedrock principle of the Justice Department and of our democracy. Upholding the rule of law means applying the law evenly, without fear or favor. Under my watch, that is precisely what the Justice Department is doing. All Americans are entitled to the evenhanded application of the law, to due process of the law, and to the presumption of innocence.”

I think AG Merrick Garland and Director Christopher Wray make a very good team in fighting crime at all levels. The FBI investigates and Justice Department prosecutes. Frequently, the FBI works in close cooperation with local officials, like the recent arrests of Mexican drug smugglers in both Texas and Arizona.

Authorities bust multi-million-dollar drug operation with ties to Mexican drug cartels

FBI Wiretap Opens Window To Murderous Drug Gang—And A Crucial Flaw In Snapchat Privacy

Drugs come through both Texas and Arizona, so the FBI is in the perfect position to coordinate state investigations.

Christopher Wray is the 8th Director of the FBI. He was sworn in on August 2, 2017. He was nominated by Donald Trump and was confirmed by the Senate 92-5. Normally, his term is 10 years. I was very glad to see Biden keeping him on. He’s got the right education and experience for the job.

Wray’s nomination was confirmed by a GOP-led Senate, with votes from Trump allies such as Sens. Ted Cruz of Texas, Lindsey Graham of South Carolina, Marco Rubio of Florida, and Josh Hawley of Missouri. At the time Trump called him a man of “impeccable credentials.” See Wray’s bio in the link below.

https://en.wikipedia.org/wiki/Christopher_A._Wray

See how quickly the Republicans have turned against the FBI. From Ted Cruz’s tweet:

“The FBI raiding Donald Trump is unprecedented. It is corrupt & an abuse of power. What Nixon tried to do, Biden has now implemented: The Biden Admin has fully weaponized DOJ & FBI to target their political enemies. And with 87K new IRS agents, they’re coming for YOU too.”

And to respond to Ted Cruz, hopefully some of these new agents will work in the criminal investigations department (IRS-CI) and they are coming for you, particularly if your name is Kunal Kalra or Jon Woo Son:

Kunal Kalra, AKA “shecklemayne”, operation: In August 2019, Kunal Kalra operated an unlicensed Money Service Business (MSB) in which he exchanged about 25 million dollars for drug dealers, credit card fraudsters, and performed other illicit activities. Kalra owned and operated a Bitcoin Kiosk (aka Bitcoin ATM) that would allow for the exchange of large amounts of money with no Know Your Customer requirements. This is believed to be the first federal criminal case charging an unlicensed money remitting business that used a Bitcoin kiosk.

In October 2019, Welcome to Video, one of the largest Darkweb child pornography sites in the world was shut down. IRS-CI was instrumental in the investigation by the tracing the bitcoin transactions used by people from all over the world to pay for the illicit material. Jong Woo Son, a South Korean national and the administrator of the website, was arrested and an eventual seizure of the child pornography material was conducted. IRS-CI performed the operation in conjunction with other agencies: U.S. Attorney’s Office for the District of Columbia, the Justice Department’s Criminal Division, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the National Crime Agency of the United Kingdom and the Korean National Police.

Things are getting tougher for the IRS Criminal Investigation, given the ease at which money is transferred over the internet. Fortunately, they usually get their man with over a 90% conviction rate.

Now, I guess you can tell, tough law enforcement means you can never pick sides. Agents have to be meticulous and persistent. There’s no fear or favor as Garland put it. There can be no Republican or Democrat side, only the rule of law side.

Stay tuned,

Dave

Raid on Trump’s home

by Dave

Commentators on Fox News were making all kinds of claims of how outrageous this action is, while other commentators on other cable stations were stressing that Trump often acts in defiance of the law, as if he should be given special privileges.

The Department of Justice does not comment on on-going investigations. Neither does the FBI, which would normally sign off on the search warrant as a necessity for their investigation. If it an unreasonable search, the law is on Trump side. Nothing gathered in an illegal search can used in any court case.

The former president’s protection against unreasonable searches comes from the Fourth Amendment. Prosecutors must convince a judge that the search warrant is justified based on current information. The fact that Trump’s home has been searched does not mean he has violated any law. The AG may find there is insufficient evidence to hold Donald Trump personally responsible for the removal of documents.

The Attorney General does not owe Congress an explanation as to why Trump’s home was searched. I do not believe the AG should testify in front of Congress in either an open hearing or closed session. Important information on the investigation will leak out. The Justice Department should move as quickly as possible to either bring charges or close out the investigation.

Per Bloomberg news: “All of a president’s official papers, no matter how trivial, are considered public property, not his alone, according to the Presidential Records Act of 1978. When the president leaves office, those papers go to the National Archives and later as part of a presidential library.”

Also, the article goes on to state: “Theft or destruction of federal records is a felony punishable by up to three years in prison — and disqualification from federal office. But it’s unlikely that the law applies to the office of president, because those qualifications are set out in the Constitution.”

I also have great trust in FBI Director Christopher Wray, a Trump appointee, and AG Merrick Garland, in following all the rules in obtaining and executing the warrant.

The independence of the Department of Justice and FBI is critical. They did not inform the White House, and that is exactly correct.

Stay tuned,

Dave

What’s wrong with this recession?

by Dave

I know this is not a particularly exciting topic. If I had done a piece on International Beer Day, which as everyone knows was August 5, then perhaps there would be a lot more interest. And yes, I’m sure that as I write this blog, there are still some people celebrating. International hangover day is January 1.

Can one word have more than one definition? I caught a bit of Sean Hannity show on Fox News, and it seemed he really had difficulty with this idea. His favorite definition of recession is two quarters of negative GDP growth. And, so by this definition, we are in one. He really made a big deal that the Democrats were hiding something big. They weren’t and he is wrong.

There is a second definition, which is also real simple. The National Bureau of Economic Research (NBER) panel of 8 economists makes a formal declaration that the country is in one, using all the relevant data. This hasn’t been done yet. They meet in secret. Economic data always lags behind the actual events, so economists at NBER back date the onset or end of recessions.

There’s No US Recession Until an Obscure Panel of ‘Eggheads’ Says It Is So

Case in point is the 2020 recession created by Covid-19 health restrictions. With health shut down, economic activity was cratering in February to March 2020. Unemployment of course was soaring, as businesses shut down or restricted the number of people inside their business. However, NBER had to wait for the jobs data. So, on June 8, 2020, they announced a recession had begun back in February. Of course, by then, it was obvious to just about every living sole who worked in the hospitality area, we were in a recession. Then, 17 months later, on July 19, 2021, the NBER declared the recession had ended in April 2020. Yes, you read that right! So, the June 8, 2020 announcement, the NBER was declaring we were in a recession, when it had already past. Don’t believe me- read the following links:

It’s official: The Covid recession lasted just two months, the shortest in U.S. history

Ok. The nice way to avoid the topic is to admit that economic contraction is likely, then change the topic quickly to something everyone can agree on, like why International Hangover day is not on August 6, immediately following International Beer day.

The second quarter GDP decline was only 0.9%, as reported on July 28, 2022. The second quarter is from April to June 2022. So, it is likely economists are looking at other data, including unemployment. If we are in a recession, then unemployment should be going up. Latest numbers show the unemployment rate is slightly lower.

US Job Growth Surges, Tempering Recession Worry and Pressing Fed

Sean Hannity is a Fox News commentator, who enjoys bashing Democrats. Incumbent presidents rarely get re-elected if there has been a recession within 2 years of their re-election. Donald Trump had the misfortune to be running for re-election in 2020, during the Covid recession.

See link: All the U.S. Presidents Who Won Re-Elections During a Recession

See link: U.S. recession ended in April 2020, making it shortest on record

So Hannity’s rant was pure politics.
But, there are real concerns. Inflation is real, and with high gas prices, consumers may spend less. So, a contraction in the economy, brings down inflation. But, it should cause unemployment to increase. So be careful what you wish for. Do you want gas prices back to $3.50/gallon or job security?

Stay tuned,

Dave

The Build Back Better Plan

by Dave

Biden’s “Build back better” package is very close to passing. Senator Joe Manchin, Senator from West Virginia, has been in negotiations with Senator Chuck Schumer, to find a way to pass this bill. If it passes, it may have been stripped of very critical elements.

The bill is hated by Republicans. They will immediately point to the enormous cost of the bill. Democrats counter by saying they have closed tax loopholes in the bill so it pays for itself. At least it does as initially proposed.

Link from the White House summarizing the bill. It is a combination of many programs, including extension of child care credits, measures to combat climate change, expand health benefits, reduce prescription drugs costs and expand educational programs beyond high school. I call them the “goodies” and others would call them social benefits.

All eyes are now on Senator Kyrsten Sinema, to see if the bill passes. If Sen. Sinema goes along with the plan, the Senate would be divided 50:50, and VP Kamala Harris could vote to break the tie. The two holdouts are quite different. Senator Joe Manchin is quite vocal on what he doesn’t like in a bill, and has worked with the majority leader to find a compromise. Not so with Senator Sinema. She doesn’t talk to the press.

It appears from the trickle of news, she’s onboard with all the social benefits in the program. She is from Arizona, so unlike Joe Manchin, there is no climate change issues. (Manchin is from West Virginia, known for its coal production). It’s the self funding part of the bill. The claim of Republicans is that it would be absurd to make a massive increase in government spending at a time when the country is on the brink of recession. I admit, they have a point.

The apparent objections from Kyrsten Sinema, are the minimum tax rate of 15% for corporations and the carried forward interest provision. Many corporations have sufficient write-offs so they pay no federal tax.

See link: Sinema Seeks to Keep Private Equity Break, Curb Corporate Tax

So, as the Bloomberg article suggests, if the Democrats satisfy Sinema and reduce the applicability of the minimum tax rate, they lose Manchin. They also will be immediately shown as hypocrites, because they claimed the package was self funding.

The bill will repeal Trump’s personal tax cuts in 2017, the so-called “welfare for the rich,” where rich is defined as those with income over $400,000. So far, leaked reports are that Sinema objections are on the corporate tax benefits (or loopholes), which is still a big piece of the self-funding claim.

I don’t know if we have a “humpty-dumpty” moment, where through the compromises needed to get Manchin and Sinema onboard, we lose the vital elements of the package, one of which is the increase in renewable energy. Trump put us behind for four years, with climate change deniers and fossil fuel advocates. I hoped Biden could reverse this, and bring internation cooperation together again, as Obama was trying hard to do.

I guess the real solution is to elect a few more Democrat senators, so two senators can’t change the bill, so it does not provide what it should (Manchin’s cuts) or is not funded properly (Sinema’s cuts). The Republicans in the end, may celebrate, with a bill that does not deliver the goods, particularly in reduction of fossil fuel consumption and is not self funding. A win for oil companies and corporate America.

Global warming is here. California wildfires continue to grow. Yes, Washburn which threatened Yosemite is under control, but the McKinney fire, right on the California/Oregon border is only 10% contained, and has destroyed 57,000 acres. Horrible injuries and loss of lives with homes and wilderness destroyed.

We can do better than this.

Stay tuned,

Dave

Humpty dumpty reference:

Something beyond repair. from a children’s rhyme: Humpty Dumpty sat on a wall, Humpty Dumpty had a great fall, All the king’s horses, And all the king’s men, Couldn’t put Humpty Dumpty together again.