Month: June 2018

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Beijing’s Massive Military Threat

180221-N-MT837-0100 SOUTH CHINA SEA (Feb. 21, 2018) Sailors participate in flight operations on the flight deck of Nimitz-class aircraft carrier USS Carl Vinson (CVN 70). Carl Vinson Strike Group is currently operating in the Western Pacific as part of a regularly scheduled deployment. (U.S. Navy photo by Mass Communication Specialist 3rd Class Dylan M. Kinee/Released)

As news of a potential nuclear deal with North Korea and the ending of the deeply flawed nuclear deal with Iran dominate the headlines, an even greater danger to international safety remains inadequately discussed.

A series of jarring activities by Beijing has occurred, not coincidentally as President Xi has gained near total personal control of his government. The latest involves firing laser weapons intended to blind U.S. Air Force pilots in Africa. According to the Pentagon, “Over the last couple of weeks, in at least two and perhaps as many as 10 incidents, U.S. aircraft landing at the base were hit by laser beams. U.S. officials said the beam is coming from a military grade laser, and that they are confident the Chinese are behind the incidents.” The pilots sustained minor injuries.

That singular incident is only the tip of the iceberg. China has dramatically enhanced its capability of dominating key oceanic passages through the installation of anti-ship missiles. Yahoo Newsquotes a U.S. official stating that intelligence assets had seen signs that China had moved some weapons systems to the Spratly Islands in the past month or so. A CNBC report discloses that  the missiles were moved to Fiery Cross Reef, Subi Reef and Mischief Reef in the Spratly Islands within the past 30 days.

China is not acting alone in its bid to end the safety in the Pacific that has prevailed since the conclusion of the Second World War. Business Insider reports that China actively wants to change the status quo in the Pacific and poses a more immediate threat to Japan. In doing so, it is working in tandem with Russia, which has also been building up its Pacific fleet to be a formidable force in the region.

An immediate and direct threat to American military forces in the region comes from China’s “Guam killer” missile, which Global Security reports has now been placed into active service.  China’s burgeoning technology in missile, including the Guam Killer as well as the DF-21, gives the PRC armed forces the capability to destroy both land and sea major U.S. assets.

The incoming commander of U.S. Pacific Forces, Admiral Philip Davidson, has provided little-reported but chilling testimony to the Senate’s Armed Forces Committee about China’s capabilities and goals:

“I have increasing concerns about the future. China has undergone a rapid military modernization over the last three decades…there is no guarantee that the United States would win a future conflict with China…

“Current force structure and presence do not sufficiently counter the threats in the Indo-Pacific, particularly a resurgent China that leverages military modernization, influence operations, and predatory economics in pursuit of regional hegemony and displacement of the United States over the long term…

click here to find out more order levitra online Taking immediate care for the problem is important part of a human life. They have facility to provide cialis prices best service for their esteemed customers and give discount offer many times. You don’t care what it takes to protect her. levitra lowest price Kamagra’s low cost and high effectiveness has made the family into dysfunctional morons, with the father being the viagra no prescription overnight most ignorant of the morons (Modern Family, Roseanne, Married with Children, Everybody loves Raymond). “it is increasingly clear that China wants to shape a world aligned with its own authoritarian model and inconsistent with these principles. Through coercive diplomacy, predatory economic policies, and rapid military expansion, China is undermining the rules-based international order…

“China is pursuing a long-term strategy to reduce U.S. access and influence in the region and become the clear regional hegemon, and Beijing has already made significant progress along this path. China is no longer a rising power but an arrived great power and peer competitor to the United States in the region. In his 2018 State of the Union Address, President Trump called China a “rival,” and I fully agree with this assessment. In pursuing its goals, China seeks to displace the U.S. as the security partner of choice for countries in the Indo-Pacific.

“Specific to the military instrument of power, the People’s Liberation Army (PLA) is using its rapidly increasing defense budget to fund the most ambitious military modernization in the world. The PLA is heavily focused on advanced platforms and long-range strike weapons, including anti-ship ballistic missiles, intermediate range ballistic missiles capable of targeting U.S. and allied bases, advanced space and cyber capabilities, and hypersonic glide weapons. These counter-intervention weapon systems are designed to push U.S. forces out beyond the First Island Chain, isolate China’s neighbors, and prevent the United States from intervening in any regional conflict on China’s periphery.

“I am also concerned about Beijing’s clear intent to erode U.S. alliances and partnerships in the region. Beijing calls them a relic of the Cold War. In fact our alliances and partnerships have been the bedrock of stability in the Indo-Pacific region for the past seventy years, and they remain a core element of our defense strategy…The threat to U.S. forces and bases is substantial and growing.

“The People’s Liberation Army Rocket Forces have a growing inventory of medium- and intermediate-range ballistic missiles than can threaten U.S. bases in the region, including those in South Korea, Japan, and Guam, as well as naval forces operating inside the Second Island Chain. Many are purpose-built for specific targets, such as aircraft carriers or air bases, and PLA Rocket Forces maintain a high degree of combat readiness.

“Moreover, China is constantly evolving its missile technology, increasing their range, survivability, accuracy, and lethality…

“China is weaponizing space. China is rapidly improving its abilities to use space as an enabler of all of its military operations and to deny an adversary’s use of space, thus increasing the level of risk to U.S. space-based assets. Supported by a growing space launch capability, China is expanding its space-based C4ISR and precision navigation architecture with new, increasingly capable satellites. The PLA is also developing an array of counterspace capabilities that provide a range of options – both kinetic and non-kinetic – to disrupt or destroy adversary space systems during a crisis or conflict. These counter-space capabilities include directed-energy weapons and satellite jammers, as well as the antisatellite missile system demonstrated in 2007 and again tested in 2014.”

Photo: U.S. Department of Defense. Sailors conduct flight operations aboard the aircraft carrier USS Carl Vinson in the South China Sea, Feb. 21, 2018, during a regularly scheduled deployment. Navy photo by Petty Officer 3rd Class Dylan

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Updates

A number of important developments have occurred on key issues that the New York Analysis of Policy and Government recently addressed.  Here’s a roundup:

RIGHT TO TRY

In March, we reported that the House of Representatives approved the “Right to Try” bill. The President has now signed the legislation, which allows those terminally ill to use experimental drugs. The common-sense measure authorizes the use of eligible investigational drugs by eligible patients who have been diagnosed with a stage of a disease or condition in which there is reasonable likelihood that death will occur within a matter of months, or with another eligible illness. Trump has been enthusiastic about the measure, even citing it in his State of the Union address.

The bill is modeled off a federal policy known as “Compassionate Use,” but contains several key changes meant to make it faster and easier for patients to obtain experimental therapies. The Right To Try advocacy group notes that “Over 1 million Americans die from a terminal illness every year. Many spend years searching for a potential cure, or struggle in vain to get accepted into a clinical trial. Unfortunately, FDA red tape and government regulations restrict access to promising new treatments, and for those who do get access, it’s often too late…Fewer than 3 percent of terminally ill patients gain access to investigational treatments through clinical trials. Right to Try was designed to help the other 97 percent…While millions of Americans will be diagnosed with or die of terminal illnesses each year, compassionate use exceptions are only granted to about 1,200 patients a year. Many patients run out of time before they can qualify for the exemption or complete the process. Right To Try laws help patients get immediate access to the medical treatments they need before it’s too late.”

BIKE LANES

In May, we reported how the use of state and local funds to build bike lanes was wasteful. There’s new evidence to back that up. A Daily Mail review found that Seattle’s new bike lane costs the taxpayers an absurd $12 million per mile. As The New York Analysis of Policy and Government noted in May, studies have found that only  about 0.6% of commuters  can make use of these lanes. The other 99.4% could be inconvenienced by them.

The Wall Street Journal reported that in cities including Baltimore, Philadelphia, Seattle, Boulder and even the trendy-friendly borough of Brooklyn, NYC, citizens are rising up against the practice of carving up roads for bike lanes. The publication found that ““Retrofitting city streets for protected bike lanes can be pricey. A master plan prepared for Baltimore’s Transportation Department recommended adding 52.5 miles over five years at a cost of $26 million…” Author and futurist Syd Mead, writing in The Los Angeles Daily News noted: “While the bicycle has many virtues, it also prompts people to go overboard. It’s often lauded as the transportation of tomorrow and the savior of cities. It is not. It is called transportation. It is not… It … operates under rigid limitations: the physical condition (and therefore age) of the rider, seasons and weather conditions, and terrain…Today there is an almost messianic insistence that bicycles should be a part of the urban transit mix. …In large urban centers…using a bicycle to traverse 10, 15, or 20 miles one-way is simply not a feasible proposition… any cost/efficiency formulae that purport to justify such infrastructure enter the realm of pure fantasy.”

CROWD SIZE

During the 2016 presidential campaign, and in the press reports concerning the Inauguration, The New York Analysis of Policy and Government noted that press estimates of attendees at Trump events significantly underestimated crowd size.  There’s new evidence of that. The Free Beacon  reports that “New York Times reporter Julie Hirschfeld Davis conceded …that President Donald Trump was correct to call out her report, saying her estimated crowd size for his Nashville rally a night earlier was incorrect. Davis’ original report said Trump’s rally attracted approximately 1,000 people, but the fire marshal’s office said they estimated ‘approximately 5,500 people.’ ”

EDUCATION SPENDING

Last November, the New York Analysis of Policy and Government reported that U.S. school systems were “Spending More and Getting Less.”  The New York Post and the Empire Center think tank have recently analyzed data from the biggest-spending state, New York, which spends more per student than any other state.

The results indicate that all those dollars haven’t produced results, notes the New York Post . “A bit more than half the city’s white students show proficiency in math and reading. Fewer than one in 10 black, and fewer than one in five Hispanic, eighth-graders show proficiency in math.” The Wall Street Journal reports that in public schools statewide, 39.8% of students in grades three through eight were proficient in English in the spring, up by 1.9 percentage points from 2016. In math, 40.2% hit that mark, up 1.1 percentage points.  However, there are concerns that even those limited and still poor results are due to watered down exams.

MEDIA BIAS

We have consistently reported on the growing problem of media bias, specifically, the tie-in between left-wing politicians and major news organizations.  A list published in Snopes  outlines some of the familial ties that led to concern during the Obama era:

  • ABC News executive producer Ian Cameron,married to Susan Rice, National Security Adviser.
  • CBS President David Rhodes, brother of Ben Rhodes, Obama’s Deputy National Security Adviser for Strategic Communications.
  • ABC News correspondent Claire Shipman, married to former Whitehouse Press Secretary Jay Carney
  • ABC News and Univision reporter Matthew Jaffe, married to Katie Hogan, Obama’s Deputy Press Secretary
  • ABC President Ben Sherwood, brother of Obama’s Special Adviser Elizabeth Sherwood
  • CNN President Virginia Moseley, married to former Hillary Clinton’s Deputy Secretary Tom Nides.

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Obviously, since the end of the Obama’s presidency, there have been changes.

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Inspector General Report Reveals Wrongdoing, Part 2

PART 2: Should key FBI personnel with conflicts of interests have recused themselves from the Clinton investigation? The long-awaited Department of Justice’s Inspector General Report on questionable actions by the Federal Bureau of Investigation has been released. Our analysis of the Report found that while it acknowledges that some of the FBI’s personnel engaged in biased statements and actions, and while family members of key personnel obtained substantial donations or jobs from the Clintons, ultimately, it maintains,  no significant harm was done to the administration of justice. The decision to essentially let Clinton off the hook for her negligent handling of national security emails, and, although not within the scope of the report,  the decision to NOT prosecute her for her role in the sale of uranium interests to Russia followed by significant contributions to her foundation from Russia, cannot be ignored.

We strongly disagree with the conclusions of the report, which essentially says that although the appearance of impropriety is evident and best practices were not followed, not actual harm was done. Clearly, key personnel and leaders within the FBI whitewashed former Secretary Clinton’s wrongdoing and did so with the specific purpose of influencing the 2016 election.

We provide key excerpts. We have added boldface to outline key points

Summary Excerpts from Inspector General Report on Actions by the FBI in the 2016 Election:

Recusal Issues

The reasons might be any; the only cheap solution is to find reliable price for levitra air conditioning repair in Dunwoody. That’s because your body on line viagra can close off the infected prostate, keeping away the helpful effects of the treatment. Along with it creatine is also recommended since it prescription free cialis helps the muscles lengthen and relax. Treating ED In addition to healthy changes, online pharmacy cialis you may require medicines that help promote erection only on sexual stimulation. Former Deputy Director Andrew McCabe: As we describe in Chapter Thirteen, in 2015, McCabe’s spouse, Dr. Jill McCabe, ran for a Virginia State Senate seat. During the campaign, Dr. McCabe’s campaign committee received substantial monetary and in-kind contributions, totaling $675,288 or approximately 40 percent of the total contributions raised by Dr. McCabe for her state senate campaign, from then Governor McAuliffe’s Political Action Committee (PAC) and from the Virginia Democratic Party. In addition, on June 26, 2015, Hillary Clinton was the featured speaker at a fundraiser in Virginia hosted by the Virginia Democratic Party and attended by Governor McAuliffe. At the time his wife sought to run for state senate, McCabe was the Assistant Director in Charge of the FBI’s Washington Field Office (WFO) and sought ethics advice from FBI ethics officials and attorneys. We found that FBI ethics officials and attorneys did not fully appreciate the potential significant implications to McCabe and the FBI from campaign donations to Dr. McCabe’s campaign. The FBI did not implement any review of campaign donations to assess potential conflicts or appearance issues that could arise from the donations. On this issue, we believe McCabe did what he was supposed to do by notifying those responsible in the FBI for ethics issues and seeking their guidance. After McCabe became FBI Deputy Director in February 2016, McCabe had an active role in the supervision of the Midyear investigation, and oversight of the Clinton Foundation investigation, until he recused himself from these investigations on November 1, 2016. McCabe voluntarily recused himself on November 1, at Comey’s urging, as the result of an October 23 article in the Wall Street Journal identifying the substantial donations from McAuliffe’s PAC and the Virginia Democratic Party to Dr. McCabe. With respect to these investigations, we agreed with the FBI’s chief ethics official that McCabe was not at any time required to recuse under the relevant authorities. However, voluntary recusal is always permissible with the approval of a supervisor or ethics official, which is what McCabe did on November 1. Had the FBI put in place a system for reviewing campaign donations to Dr. McCabe, which were public under Virginia law, the sizable donations from McAuliffe’s PAC and the Virginia Democratic Party may have triggered prior consideration of the very appearance concerns raised in the October 23 WSJ article. Finally, we also found that McCabe did not fully comply with this recusal in a few instances related to the Clinton Foundation investigation.

Former Assistant Attorney General Peter Kadzik: In Chapter Fourteen, we found that Kadzik demonstrated poor judgment by failing to recuse himself from Clinton-related matters under federal ethics regulations prior to November 2, 2016. Kadzik did not recognize the appearance of a conflict that he created when he initiated an effort to obtain employment for his son with the Clinton campaign while participating in Department discussions and communications about Clinton-related matters. Kadzik also created an appearance of a conflict when he sent the Chairman of the Clinton Campaign and a longtime friend, John Podesta, the “Heads up” email that included the schedule for the release of former Secretary Clinton’s emails proposed to the court in a FOIA litigation without knowing whether the information had yet been filed and made public. His willingness to do so raised a reasonable question about his ability to act impartially on Clinton-related matters in connection with his official duties. Additionally, although Department leadership determined that Kadzik should be recused from Clintonrelated matters upon learning of his “Heads up” email to Podesta, we found that Kadzik failed to strictly 20 adhere to this recusal. Lastly, because the government information in the “Heads up” email had in fact been released publically, we did not find that Kadzik released non-public information or misused his official position.

 

 

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Quick Analysis

Inspector General Report Reveals Wrongdoing

The long-awaited Department of Justice’s Inspector General Report on questionable actions by the Federal Bureau of Investigation has been released. Our analysis of the Report found that while it acknowledges that some of the FBI’s personnel engaged in biased statements and actions, and while family members of key personnel obtained substantial donations or jobs from the Clintons, it shockingly claims that ultimately no significant harm was done to the administration of justice. The decision to essentially let Clinton off the hook for her negligent handling of national security emails, and, although not within the scope of the report,  the decision to NOT prosecute her for her role in the sale of uranium interests to Russia followed by significant contributions to her foundation from Russia, cannot be ignored.

We strongly disagree with the conclusions of the report, which essentially says that although the appearance of impropriety is evident and best practices were not followed, not actual harm was done. Clearly, key personnel and leaders within the FBI whitewashed former Secretary Clinton’s wrongdoing and did so with the specific purpose of influencing the 2016 election.

Because insufficient media attention was paid to the key findings, we  provide essential excerpts.  Boldface has been added.

Summary Excerpts from Inspector General Report on Actions by the FBI in the 2016 Election

Department of Justice (DOJ) Inspector General Michael E. Horowitz announced [June 14] the release of a report examining various actions by the Federal Bureau of Investigation (FBI) and the DOJ in advance of the 2016 election in connection with the investigation into former Secretary of State Hillary Clinton’s use of a private email server (referred to by the FBI and DOJ as the “Midyear” investigation).

During the course of the review, the OIG discovered text messages and instant messages between some FBI employees on the investigative team, conducted using FBI mobile devices and computers, that expressed statements of hostility toward then candidate Donald Trump and statements of support for Clinton. We also identified messages that expressed opinions that were critical of the conduct and quality of the investigation.

[The investigators] Did not seek to obtain every device, including those of Clinton’s senior aides, or the contents of every email account through which a classified email may have traversed. We found that the reasons for not doing so were based on limitations the Midyear team imposed on the investigation’s scope, the desire to complete the investigation well before the election, and the belief that the foregone evidence was likely of limited value. We further found that those reasons were, in part, in tension with Comey’s response in October 2016 to the discovery of Clinton emails on the laptop of Anthony Weiner, the husband of Clinton’s former Deputy Chief of Staff and personal assistant, Huma Abedin;

[Investigators] Considered but did not seek permission from the Department to review certain highly classified materials that may have included information potentially relevant to the Midyear investigation.

We found that, by the date of her interview, the Midyear team and Comey had concluded that the evidence did not support criminal charges (absent a confession or false statement by Clinton during the interview), and that the interview had little effect on the outcome of the investigation; and · Allowed Mills and Samuelson to attend the Clinton interview as Clinton’s counsel, even though they also were fact witnesses, because the Midyear team determined that the only way to exclude them was to subpoena Clinton to testify before the grand jury, an option that we found was not seriously considered. We found no persuasive evidence that Mills’s or Samuelson’s presence influenced Clinton’s interview. Nevertheless, we found the decision to allow them to attend the interview was inconsistent with typical investigative strategy.

Thus, a determination by the OIG that a decision was not unreasonable does not mean that the OIG has endorsed the decision or concluded that the decision was the most effective among the options considered. We took this approach because our role as an OIG is not to second-guess valid discretionary judgments made during the course of an investigation, and this approach is consistent with the OIG’s handling of such questions in past reviews. In undertaking our analysis, our task was made significantly more difficult because of text and instant messages exchanged on FBI devices and systems by five FBI employees involved in the Midyear investigation. These messages reflected political opinions in support of former Secretary Clinton and against her then political opponent, Donald Trump. Some of these text messages and instant messages mixed political commentary with discussions about the Midyear investigation, and raised concerns that political bias may have impacted investigative decisions.

In particular, we were concerned about text messages exchanged by FBI Deputy Assistant Director Peter Strzok and Lisa Page, Special Counsel to the Deputy Director, that potentially indicated or created the appearance that investigative decisions were impacted by bias or improper considerations. As we describe in Chapter Twelve of our report, most of the text messages raising such questions pertained to the Russia investigation, which was not a part of this review. Nonetheless, the suggestion in certain Russia-related text messages in August 2016 that Strzok might be willing to take official action to impact presidential candidate Trump’s electoral prospects caused us to question the earlier Midyear investigative decisions in which Strzok was involved, and whether he took specific actions in the Midyear investigation based on his political views.

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Although we found no evidence that Lynch and former President Clinton discussed the Midyear investigation or engaged in other inappropriate discussion during their tarmac meeting, we also found that Lynch’s failure to recognize the appearance problem created by former President Clinton’s visit and to take action to cut the visit short was an error in judgment. We further concluded that her efforts to respond to the meeting by explaining what her role would be in the investigation going forward created public confusion and did not adequately address the situation.

the prosecutors concluded that the evidence did not support prosecution under any of these statutes for various reasons, including that former Secretary Clinton and her senior aides lacked the intent to communicate classified information on unclassified systems. Critical to their conclusion was that the emails in question lacked proper classification markings, that the senders often refrained from using specific classified facts or terms in emails and worded emails carefully in an attempt to “talk around” classified information, that the emails were sent to other government officials in furtherance of their official duties, and that former Secretary Clinton relied on the judgment of State Department employees to properly handle classified information, among other facts. We further found that the statute that required the most complex analysis by the prosecutors was Section 793(f)(1), the “gross negligence” provision that has been the focus of much of the criticism of the declination decision. As we describe in Chapters Two and Seven of our report, the prosecutors analyzed the legislative history of Section 793(f)(1), relevant case law, and the Department’s prior interpretation of the statute. They concluded that Section 793(f)(1) likely required a state of mind that was “so gross as to almost suggest deliberate intention,” criminally reckless, or “something that falls just short of being willful,” as well as evidence that the individuals who sent emails containing classified information “knowingly” included or transferred such information onto unclassified systems. The Midyear team concluded that such proof was lacking.

We found that, by no later than September 29, FBI executives and the FBI Midyear team had learned virtually every fact that was cited by the FBI in late October as justification for obtaining the search warrant for the Weiner laptop, including that the laptop contained: · Over 340,000 emails, some of which were from domains associated with Clinton, including state.gov, clintonfoundation.org, clintonemail.com, and hillaryclinton.com; · Numerous emails between Clinton and Abedin; · An unknown number of Blackberry communications on the laptop, including one or more messages between Clinton and Abedin, indicating the possibility that the laptop contained communications from the early months of Clinton’s tenure; and · Emails dated beginning in 2007 and covering the entire period of Clinton’s tenure as Secretary of State. As we describe in Chapter Nine of our report, the explanations we were given for the FBI’s failure to take immediate action on the Weiner laptop fell into four general categories: · The FBI Midyear team was waiting for additional information about the contents of the laptop from NYO, which was not provided until late October; · The FBI Midyear team could not review the emails without additional legal authority, such as consent or a new search warrant; · The FBI Midyear team and senior FBI officials did not believe that the information on the laptop was likely to be significant; and · Key members of the FBI Midyear team had been reassigned to the investigation of Russian interference in the U.S. election, which was a higher priority. We found these explanations to be unpersuasive justifications for not acting sooner, given the FBI leadership’s conclusion about the importance of the information and that the FBI Midyear team had sufficient information to take action in early October and knew at that time that it would need a new search warrant to review any Clinton-Abedin emails. Moreover, given the FBI’s extensive resources, the fact that Strzok and several other FBI members of the Midyear team had been assigned to the Russia investigation, which was extremely active during this September and October time period, was not an excuse for failing to take any action during this time period on the Weiner laptop. The FBI’s failure to act in late September or early October is even less justifiable when contrasted with the attention and resources that FBI management and some members of the Midyear team dedicated 14 to other activities in connection with the Midyear investigation during the same period.

these activities included: · The preparation of Comey’s speech at the FBI’s SAC Conference on October 12, a speech designed to help equip SACs to “bat down” misinformation about the July 5 declination decision; · The preparation and distribution of detailed talking points to FBI SACs in mid-October in order, again, “to equip people who are going to be talking about it anyway with the actual facts and [the FBI’s] actual perspective on [the declination]”; and · A briefing for retired FBI agents conducted on October 21 to describe the investigative decisions made during Midyear so as to arm former employees with facts so that they, too, might counter “falsehoods and exaggerations.”

In assessing the decision to prioritize the Russia investigation over following up on the Midyear-related investigative lead discovered on the Weiner laptop, we were particularly concerned about text messages sent by Strzok and Page that potentially indicated or created the appearance that investigative decisions they made were impacted by bias or improper considerations. Most of the text messages raising such questions pertained to the Russia investigation, and the implication in some of these text messages, particularly Strzok’s August 8 text message (“we’ll stop” candidate Trump from being elected), was that Strzok might be willing to take official action to impact a presidential candidate’s electoral prospects. Under these circumstances, we did not have confidence that Strzok’s decision to prioritize the Russia investigation over following up on the Midyear-related investigative lead discovered on the Weiner laptop was free from bias.

We found no evidence that Comey’s decision to send the October 28 letter was influenced by political preferences. Instead, we found that his decision was the result of several interrelated factors that were connected to his concern that failing to send the letter would harm the FBI and his ability to lead it, and his view that candidate Clinton was going to win the presidency and that she would be perceived to be an illegitimate president if the public first learned of the information after the election. Although Comey told us that he “didn’t make this decision because [he] thought it would leak otherwise,” several FBI officials told us that the concern about leaks played a role in the decision. Much like with his July 5 announcement, we found that in making this decision, Comey engaged in ad hoc decisionmaking based on his personal views even if it meant rejecting longstanding Department policy or practice. We found unpersuasive Comey’s explanation as to why transparency was more important than Department policy and practice with regard to the reactivated Midyear investigation while, by contrast, Department policy and practice were more important to follow with regard to the Clinton Foundation and Russia investigations.

Comey, Lynch, and Yates faced difficult choices in late October 2016. However, we found it extraordinary that Comey assessed that it was best that the FBI Director not speak directly with the Attorney General and Deputy Attorney General about how best to navigate this most important decision and mitigate the resulting harms, and that Comey’s decision resulted in the Attorney General and Deputy Attorney General concluding that it would be counterproductive to speak directly with the FBI Director.

As we describe in Chapter Twelve, during our review we identified text messages and instant messages sent on FBI mobile devices or computer systems by five FBI employees who were assigned to the Midyear investigation. These included: · Text messages exchanged between Strzok and Page; · Instant messages exchanged between Agent 1, who was one of the four Midyear case agents, and Agent 5, who was a member of the filter team; and · Instant messages sent by FBI Attorney 2, who was assigned to the Midyear investigation. The text messages and instant messages sent by these employees included statements of hostility toward then candidate Trump and statements of support for candidate Clinton, and several appeared to mix political opinions with discussions about the Midyear investigation. We found that the conduct of these five FBI employees brought discredit to themselves, sowed doubt about the FBI’s handling of the Midyear investigation, and impacted the reputation of the FBI. Although our review did not find documentary or testimonial evidence directly connecting the political views these employees expressed in their text messages and instant messages to the specific investigative decisions we reviewed in Chapter Five, the conduct by these employees cast a cloud over the FBI Midyear investigation and sowed doubt the FBI’s work on, and its handling of, the Midyear investigation. Moreover, the damage caused by their actions extends far beyond the scope of the Midyear investigation and goes to the heart of the FBI’s reputation for neutral factfinding and political independence.

We were deeply troubled by text messages exchanged between Strzok and Page that potentially indicated or created the appearance that investigative decisions were impacted by bias or improper considerations. Most of the text messages raising such questions pertained to the Russia investigation, which was not a part of this review. Nonetheless, when one senior FBI official, Strzok, who was helping to lead the Russia investigation at the time, conveys in a text message to another senior FBI official, Page, “No. No he won’t. We’ll stop it” in response to her question “[Trump’s] not ever going to become president, right? Right?!”, it is not only indicative of a biased state of mind but, even more seriously, implies a willingness to take official action to impact the presidential candidate’s electoral prospects. This is antithetical to the core values of the FBI and the Department of Justice. We do not question that the FBI employees who sent these messages are entitled to their own political views. However, we believe using FBI devices to send the messages discussed in Chapter Twelve— particularly the messages that intermix work-related discussions with political commentary—potentially implicate provisions in the FBI’s Offense Code and Penalty Guidelines. At a minimum, we found that the employees’ use of FBI systems and devices to send the identified messages demonstrated extremely poor judgment and a gross lack of professionalism. We therefore refer this information to the FBI for its handling and consideration of whether the messages sent by the five employees listed above violated the FBI’s Offense Code of Conduct.

The Report Concludes Tomorrow

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Conservatives Lose, Even When They Win

When it comes to the brass-knuckle business of politics, conservatives appear to bring knives to the proverbial gun fight.

These should be heady days for those on the right as their preferred party, the has the White House and majority control of both houses of Congress. Most governorships and state legislatures are owned by Republicans. Even more important, the failure of leftist policies, particularly those enacted during the Obama administration, has become manifestly clear.

By the time the former president’s second term ended, American foreign policy was in tatters. The post-World War II paradigm that prevented another global conflict was in imminent danger of ending, as Russia and China both engaged in massive military buildups and aggressive actions beyond their borders. North Korea became a significant nuclear power, and Iran expanded its influence. This occurred even as the United States disinvested in its own armed forces and retreated from international leadership.

So much for giving peace a chance!

Domestically, America’s middle class suffered in dramatic fashion. Despite an opportunity for a strong recovery from the Great Recession, leftist policies of heavy regulation, massive increases in social spending (even while providing seniors with some of the smallest cost-of-living-adjustment increases in decades, and failing to address the Department of Veterans Affairs mess,) attacks on the energy sector, and establishing disincentives for full-time employment hobbled the national economy. While the former White House touted a low unemployment rate, the reality is that middle-income jobs were lost and replaced by minimum-wage and part-time positions. The Affordable Care Act resulted in vastly hiked premiums and a reduced quality of care.

Following the 2016 campaign victory, instead of a period of legislative accomplishment similar in quantity to President Obama’s first two years when the Democrats had near-complete control, the Republicans seem to concentrate on infighting. Two major accomplishments — tax reform and a modest increase in the defense budget — did come about, but much was left undone, especially health care reform.

Certainly, an unprecedented attack on the new administration by both the media and Democratic leaders, including a near rebellion by the entrenched bureaucracy, must be taken into account. And, of course, there is the Russian collusion scandal, despite its being based on what clearly appears to be the flimsiest of evidence, prosecuted by a partisan special counsel team.

The cost of generic medications however is significantly viagra professional lower. In vitro experimental studies have shown that retinoic acid can inhibit Ito 3H-TdR incorporation and reduce the primary cultured fat-storing the canadian pharmacy viagra DNA, RNA content. The medicine should be taken at least 15 minutes to 20 minutes before the sexual activity to enjoy the best results.’ 1 pill of viagra for cheap should also be taken 45 minutes prior to your sexual session. However, keeping love alive in the cialis 60mg relationship is to make satisfaction physically to each other. But here is where the contrast between the left and the right comes clearly into focus. Democrats see politics as blood sport, with no holds barred. They attack relentlessly, whether their objections are justified or not. The Republicans appear to be playing by Marquis of Queensbury rules. There were significant opportunities, rising to the level of constitutional crises, during the Obama years, to concentrate on the misdeeds of an administration that laughably billed itself as “scandal free.” The wholesale misuse of federal departments, most notably the Internal Revenue Service, the Environmental Protection Agency and the Department of Justice for partisan political goals was unprecedented in American history. Key international “agreements” were adopted, including the Paris Climate Accord and the Iran Nuclear Agreement, without the constitutionally mandated consent of the Senate.

Old-fashioned financial shenanigans were engaged in as well, but on a scale never before seen. The Obama stimulus program wasted more than $800 billion but provided little results other than enriching Obama-friendly organizations. Indeed, the doubling of the national debt produced nothing of note. The national infrastructure remained subpar, poverty was not reduced, the economy remained in low gear, and the military deteriorated.

Granted, a left-oriented media chose to ignore or at least downplay these offenses. But the Republican Party’s response, to essentially give up on executing substantive legal or public relations challenges, remains questionable. One factor that can be cited for the lack of success is the Republican failure to match Democratic influence in the entrenched bureaucracy, a crucial point in these affairs.

Republicans have done well at the ballot box, but they have done poorly in the other key aspects of political warfare. For far too long, they have been outperformed by their rivals in the essential fields of bureaucratic and academic staffing, as well as in the unfortunately influential realm of late-night comedians.

The politics of the 21st century require more than Election Day victories.

This article, by Frank Vernuccio, editor-in-chief of the New York Analysis of Policy & Government, originally appeared in the Washington Times.

Illustration: Pixabay

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Quick Analysis

Political Correctness and the Death of Free Speech, Part 2

The abduction and rape of up to a thousand young girls in some areas of the United Kingdom has been downplayed due to fears of being culturally insensitive.

In almost every country where there has been extensive Muslim immigration, a minority of self- segregating Muslims have refused to assimilate and instead have demanded special treatment.  Progressive politicians seeking political success via identity politics have accommodated them.

Some Muslim immigrants reject the laws of their adopted nations and instead want Sharia imposed together with all the oppressive barriers to individual rights and free will coupled with the misogynistic restrictions to full equality for women.

Political Correctness is both a political tool and a political weapon for both the left and Islamists who are allied in a mutual disgust for Western Civilization and/or modernity.  It is a “tool” to impose group think, self-imposed cultural and social apartheid and tribal conformity.  It is a weapon to silence the opposition.  In Rotherham it was a “never get arrested” permit sanctioned by everyone whose sworn responsibility was to protect the innocent and the vulnerable.

Quillette reports that “The scale of the street grooming crisis in the UK almost defies belief. Hundreds of girls and young women were raped in the city of Rotherham, and hundreds by similar exploitation rings… Now, up to a thousand girls are thought to have been drugged, raped, and beaten in Telford between the 1980s and the 2010s…’cultural sensitivity’ was a factor. There was ‘a general nervousness in the earlier years about discussing [the backgrounds of the perpetrators], for fear of being thought racist.’…Society at large failed to give the crisis the attention it amply deserved and this had much to do with political convenience. Fifteen years ago, in 2003, Ann Cryer, then Labour MP for Bradford, reported that Asian men [from Bangladesh and Pakistan] were abusing girls. A profile in the Yorkshire Post reveals that she was ‘ridiculed, branded a racist, a liar and a fantasist [and] forced to install a panic button in her own home.’ “
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The Rotherham abuse has spread to other British communities, including Rochdale, Oxford and Newcastle. According to The Independent, “Sammy Woodhouse, who was abused as a teenager by a Rotherham ringleader … and has waived her right to anonymity… abuse was underway ‘all over the country’…Her calls for action came as figures show that in Bradford 1,153 referrals were made to its child sexual exploitation team in 2016/17 – a 62 per cent increase on the year before. Bradford Metropolitan District Council’s specialist hub launched interventions for 861 children – including many who were referred more than once. The vast majority of possible victims are girls…Authorities behind an investigation that identified more than 700 women and girls as potential victims of sexual exploitation in North East England believe the abuse is happening far beyond areas where perpetrators have been caught.”

In response, “Tommy Robinson” (Real name Stephen Yaxley-Lennon, who adopted the alias to safeguard his family from reprisals) protested against government inaction.  Despite engaging in a quiet and peaceful presence outside of a Leeds courthouse, he was arrested. He was livestreaming on Facebook at the time.  The Standard reports that “Hundreds of  protesters… descended on Whitehall to demonstrate against Tommy Robinson’s arrest …Whitehall had to be closed to traffic as a huge group gathered outside Downing Street on Saturday afternoon, chanting Mr Robinson’s name.” Mr. Yaxley-Lennon’s organization, the English Defence League 
released a statement noting that “the Government refuses to stand up for us and the thousands of young women and girls abused by Muslim gangs up and down this country.  We call it rape jihad because it is not only an attack on the individual girls it is an attack on the foundation of this country, on our future mothers.”

While America’s First Amendment has provided greater protections for U.S. citizens, political and media pressures are brought into play.  Those criticizing the refusal to enforce federal immigration laws, or to speak bluntly of abusive acts against females under the guise of cultural practices, are frequently branded as “racists.”

Photo: Parliament (Visit London)

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Quick Analysis

Political Correctness and the Death of Free Speech

The end result of “political correctness” and the effort to attack what some perceive to be “offensive” or “hate” speech is being played out in the United Kingdom. One man, Stephen Yaxley-Lennon, is paying the price, in the form of a 13 month prison sentence.

Realization of the devastating harm that has been caused by measures prohibiting open and honest discussion of criminal offensives committed by groups that attack free speech can best be understood by reviewing what first came to light in Rotherham, a city of approximately 250,000 in South Yorkshire, England.

From 1997 through 2013 and beyond, over 1,400 young. white, working class girls were systematically and sexually preyed upon by gangs of older men in the northern English town of Rotherham.  The girls involved were often troubled, living in group or foster homes, often living chaotic and dysfunctional lives which made them easy marks for their predators.

Despite numerous individual reports and three official reports in 2002, 2003 and 2006, nothing significant was done by local elected and appointed officials or the local Police.  This was mainly due to the fact that the gangs of men responsible were Muslims of Pakistani, Bangladeshi or Afghani origin.  Local officials, the majority of whom are from the Labour Party, repeatedly tried to avoid either racial confrontations or being labeled racist or anti-Muslim.

In 2013 The Times of London did a series of investigatory articles about Rotherham which exposed the scandal.  This prompted the Rotherham Council to commission an independent report by Professor Alexis Jay  who was formerly the Chief Inspector of Social Work in Scotland.  That report which was issued in August of 2014 has exploded like a bomb and has exposed the “Politically Correct” and “Multicultural” bias that allowed serial crimes of a horrific nature to be inflicted on young girls.

In the Executive Summary to her report, Professor Jay wrote this about the girls; ” They were raped by multiple perpetrators, trafficked to other towns and cities in the north of England, abducted, beaten and intimidated.  There were examples of children being doused in petrol and threatened with being set alight, threatened with guns, made to witness brutally vicious rapes and threatened they would be next if they told anyone.  Girls as young as 11 were raped by large number of male perpetrators.  This abuse is not confined to the past but continues to this day.”

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The Police told Julie Bindel,  one of the few feminists who investigated Rotherham that they were “treading carefully” and didn’t want to provoke a “race riot”.  No one from the Rotherham Council ever approached the leaders of the Muslim community and no one from the Muslim community ever exposed the scandal.

Home Secretary Theresa May that the monstrous crimes went on for so long because of “institutional Political Correctness”. 

It should also be noted that recently the head of the UKs Independence Party, Nigel Farage cited “Multiculturalism” as a main reason British citizens went to fight for ISIS and behead innocent reporters and civilians.  Farage stated “We’ve seen an increased radicalization within the United Kingdom, much of this I’m afraid to say is a self-inflicted wound.  We’ve had four decades of state-sponsored multiculturalism.   We’ve actually encouraged people not to come together and be British but to live separately, to live apart…”

The Report concludes Monday 

Photo: Trafalgar Square (Visit London)

 

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Quick Analysis

Defense Spending Bill Acknowledges Major Threats, Part 2

On Saturday, The New York Analysis of Policy and Government provided a general outline of the National Defense Authorization Act recently passed by the House of Representatives.  In today’s article, we provide specifics. 

Spending for Specific Weapons Systems in the NDAA

  • Authorizes $360.0 million, an increase of $338.1 million, for Stryker A1 combat vehicles, the most survivable and advanced version of the Stryker combat vehicle. ● Supports the President’s budget request to modernize Army Armored Brigade Combat Team vehicles, including 135 M1 Abrams tanks, 60 Bradley fighting vehicles, 197 Armored multi—purpose vehicles, 38 Improved Recovery Vehicles, and 3,390 Joint Light Tactical Vehicles. ● Authorizes multiyear procurement authorities for F/A—18E/F Super Hornet aircraft, C— 130 Super Hercules aircraft, E—2D Advanced Hawkeye aircraft, advanced missiles and amphibious ships to generate better cost savings for the taxpayer and provide needed capability to the Navy; ● Supports the President’s budget request for the F—35 Joint Strike Fighter and authorizes 77 aircraft. The bill also authorizes the Department to procure additional F-35 aircraft, if additional funds become available, utilizing cost savings and program efficiencies. ● Authorizes an additional $85.0 million for additional UH—60M Black Hawk utility helicopters for the Army National Guard. The most modern Black Hawk version. ● Supports additional funding to maintain the maximum production rate of critical munitions, such as small diameter bombs, joint direct attack munitions, hellfire missiles, advanced precision kill weapon systems, long range anti—ship missiles, tomahawk missiles, advanced medium—range air—to—air missiles and torpedoes. ● Mandates recapitalization of the Navy’s 43—year old auxiliary fleet which would help to transport Army and Marine Corps forces in times of conflict. ● Encourages the rapid development and fielding of interim maneuver short range air defense capabilities and indirect fire protection solutions to address current deficiencies in air and missile defense. ● Fully supports funding for the Columbia—class ballistic missile submarine and the B—21 Raider bomber programs. ● Adds $150 million to accelerate U.S. efforts to field a conventional prompt strike capability before FY22, in response to the critical advances Russia and China have made in developing their prompt global strike hypersonic weapons.

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STRATEGIC READINESS

The NDAA supports the Nuclear Posture Review’s recommendation to pursue a lower—yield ballistic missile warhead to strengthen deterrence. ● Supports the President’s budget request to restore the nuclear arsenal and adds $325 million for the National Nuclear Security Administration’s nuclear weapons activities and defense nuclear nonproliferation program, including efforts to modernize the nuclear weapons stockpile and address NNSA’s aging facilities and other infrastructure. ● Provides increased funding to accelerate two key Air Force nuclear modernization programs: The Ground—Based Strategic Deterrent and the Long—Range Standoff cruise missile

Missile Defense

The HASC believes the threats from North Korea and Iran demonstrate that the time to debate the utility or practicality of missile defenses has passed. Again, building on the work of the Subcommittee on Strategic Forces, the NDAA: ● Supports the President’s request for missile defense and adds $140 million to the Missile Defense Agency (MDA) for development of critical directed energy, and Space sensing projects, and the acceleration of hypersonic defense capabilities. ● Adds $175 million to accelerate integration of Patriot (for lower altitudes) andTerminal High Altitude Area Defense (higher altitudes) missiles to meet the requirements of the Commander of U.S. Forces in Korea. ● Requires the director of MDA establish a boost phase intercept program using kinetic interceptors, initiate development of a missile defense tracking and discrimination Space sensor layer and continue efforts to develop high power directed energy for missile defense applications. ● Requires the Director of MDA to continue development for the homeland defense radar in Hawaii, and that it be operationally capable by FY23. ● Provides increased funding to address cyber threats to our missile defense systems. ● Supports the President’s request of $500 million for co—development of missile defense systems with Israel, and co—production of Iron Dome, David’s Sling, and Arrow weapons systems.

Space Warfighting

Russia and China are developing capabilities to deny the United States the advantages it derives from operating in space. Equally concerning is the inability of the organizations responsible for the nation’s national security—related space activities to prepare for Space to become a warfighting domain and to adequately develop and/or acquire essential national security Space systems. Efforts to reform the Department’s approach to Space issues can be summarized in four equally important elements: acquisition reform, resources, cadre development, and joint warfighting. The NDAA comprehensively addresses each one of these lines of effort to ensure that our Servicemembers are ready to defend our vital national interests in space. The bill also ensures that the Department’s Space investments are being executed in a way to ensure increased agility, lethality, and accountability by the Department of Defense. The NDAA: ● Directs the Department of Defense to develop a plan to establish a separate alternative acquisition process for Space acquisitions. ● Directs the Secretary of the Air Force to develop and implement a plan to increase the size and quality of the Space cadre within the Air Force. ● Establishes a new numbered Air Force responsible for carrying out Space warfighting. ● Establishes a sub—unified command for Space under the Strategic Command for carrying out joint Space warfighting. ● Directs the Secretary of Defense to develop a plan that identifies joint mission—essential tasks for Space as a warfighting domain. ● Supports the President’s request for Next Generation Overhead Persistent Infrared, Protected Satellite Communications, and the Air Force’s Space launch efforts.

FACING NEW THREATS

Russia and China are reasserting their power and leveraging new technologies, The U.S. competitive edge has eroded in every domain of warfare, air, land, sea, Space, and cyberspace, and it is continuing to erode. The NDAA includes threat—specific initiatives designed to maximize defense resources and keep America safe.

Emerging Technologies

America’s security is challenged by our strategic competitors’ advances in Artificial Intelligence, Space and counter—Space capabilities, Cyber, Influence Operations, and Hypersonics, among others. To address these threats, the NDAA: ● Places emphasis on policy and programs to advance Artificial Intelligence, machine learning, quantum computing, and other critical national security technologies; ● Fully supports innovation efforts of the Defense Advanced Research Projects Agency, and Defense Innovation Unit Experimental to ensure our technological superiority and dominance over current and future threats; ● Advances hypersonic and directed energy weapons research, development, and transition efforts within DoD; ● Provides additional funds to accelerate Artificial Intelligence, machine learning programs, as well as directed energy, and hypersonics programs.

Photo: U.S. DoD

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Defense Spending Bill Acknowledges Major Threats

The United States has never faced a collection of opponents more dangerous than that of the Russian-Chinese Axis, with Iran and North Korea thrown in for added problems.

Despite that, as Moscow and Beijing have dramatically upgraded their armed forces and engaged in aggressive acts, Washington, during the Obama Administration, depleted the nation’s defenses, reducing even further a military that was decimated following the end of the cold war in the mistaken belief that the end of the USSR meant that peace was at hand.

There is, finally, a growing sense of urgency within the government about the decline of American strength even as the threat expands. According to the House Armed Services Committee,(HASC)  “America’s military is facing challenges on multiple fronts, including the troubling increase in serious training accidents in all the military services; the re—emergence of competitors like Russia and China; the nuclear ambitions of Iran and North Korea; and the imperative to keep up the pressure on ISIS, al Qaeda, and other terrorist groups.”

The HASC notes that “Competitors like Russia and China are investing in new strategic weapons designed to challenge America’s credible nuclear deterrent, undermine missile defense capabilities, and erode the advantages the U.S. derives from Space.” According to the Congressional Committee, “…The NDAA takes a comprehensive approach to ensuring U.S. security by answering each one of those these challenges. Russia and China are building new modern nuclear weapons. At the same time, America’s nuclear deterrent has been neglected.”

In response, The House of Representatives has passed the 2019 National Defense Authorization Act, which reflects that growing concern.

If passed by the Senate and approved by the President in its current form, the spending bill would authorize $717 billion in spending for defense needs, including significant increases for readiness recovery, and fully fund a 2.6 percent pay raise for servicemembers, the highest increase in 9 years. It also extends special pay and bonuses for servicemembers in high-demand fields to combat the high turnover of these jobs.

The HASC notes that “While the world has grown more dangerous, our military has grown smaller. Rebuilding the U.S. military must begin with growing the number of uniformed personnel. To help alleviate the stress on the force, the NDAA authorizes increases in the size of the Army, Navy, Air Force, Naval and Air Reserve, and Air Guard commensurate with the threats we face. …Continuing to recruit and retain America’s best…The NDAA also takes steps to address the ongoing pilot shortage, which is hampering readiness in every Service. In an effort to address the persistent pilot shortage in the Air Force, the NDAA requires the Service to evaluate all pilot staff requirements to maximize pilots’ time in the cockpit. Similarly, the bill extends the National Guard recruiting pilot program, which is designed to use retired senior enlisted members to fill recruiter positions so that current National Guard members can focus on their primary mission.”

General Outline

  • Authorizes $18.5 billion to begin to rehabilitate and replace worn out Army equipment, $39.4 billion to begin address the military aviation crisis, $36 billion to restore sea strength, and $23.3 billion to rebuild military buildings and infrastructure;
  • Funds the growth of the Army, Navy, Air Force, Naval and Air Reserve, and Air Guard;
  • Increases funding for training in each service;
  • Creates a Chief Management Officer (CMO) who will be charged with finding efficiencies and reducing 25 percent of the cost of certain Department-wide activities, enhancing accountability;
  • Provides $21.8 billion for equipment maintenance and $3.7 billion for spare parts;
  • Adds funding to improve America’s missile defense;
  • Makes key investments in other critical military capabilities to confront aggression and address threats around the world, including threats from Russia, China, North Korea and Iran; and
  • Places emphasis on policy and programs to advance America’s security against emerging threats – Artificial intelligence, space and counter-space capabilities, cyber, influence operations, hypersonics, among others.

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The Report concludes Monday.

Photo: U.S. DoD

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Obama Administration Lied to Congress About Helping Iran, Part 2

Yesterday, we reported that the Senate’s Subcommittee on Investigations has found that the Obama Administration lied to both Congress and the media, concerning its attempt to circumvent U.S. sanctions on Iran.  Today, we examine the Committee’s findings of fact and recommendations.

The curious desperation of the Obama Administration to help Iran was illustrated by the White House move to encourage foreign banks to assist the Tehran regime.  The just-released Report of the Senate’s Permanent SubCommittee on Investigations notes that “The State Department and Treasury Department held at least 200 meetings or ‘roadshows’ around the world to encourage other countries to do business with Iran. Treasury Department officials downplayed any potential future penalties or fines, stating that 95 percent of the time, The Office of Foreign Asset Control (OFAC) sends a warning letter or takes no action. And at least one European regulator who attended an OFAC roadshow, commented that foreign financial institutions felt ‘political pressure’ to conduct business with Iran and Iranian companies. ”

Review of U.S. Treasury Department’s License to Convert Iranian Assets Using the U.S. Financial System:  MAJORITY REPORT PERMANENT SUBCOMMITTEE ON INVESTIGATIONS UNITED STATES SENATE

FINDINGS OF FACTS AND RECOMMENDATIONS

Findings of Fact

(1) Under the JPOA, Iran transferred roughly $13.4 billion in oil revenue assets to restricted accounts overseas. Iran deposited $8.8 billion of that oil revenue in one restricted account at Bank Muscat in Muscat, Oman.

(2) Following Implementation Day for the JCPOA, Iran began to seek the benefits of the deal, including requesting access to assets frozen in restricted accounts. While other countries were free to do business with Iran, primary sanctions by the United States remained in place under the terms of the JCPOA. This meant it continued to be illegal for U.S. persons and entities to do business with Iranian persons and entities.

(3) Iran requested access to the U.S. financial system. Three days after Implementation Day, Bank Muscat contacted OFAC on behalf of the Central Bank of Iran. Bank Muscat sought to convert $5.7 billion in Omai rials into euros on behalf of Iran. Because the rial is pegged to the U.S. dollar, the most efficient conversion was with an intermediary step through a U.S. bank using U.S. dollars. However, other options to convert the rials into euros without using the U.S. dollar existed.

(4) U.S. government officials testified before Congress that Iran was not granted access to the U.S. financial system under the JCPOA. In July 2015, Treasury Secretary Jack Lew testified before the Senate Foreign Relations Committee that, under the JCPOA, Iran “will continue to be denied access to the [U.S.’s] financial and commercial market.” Later that same month, the Treasury Department’s Acting Under Secretary for Terrorism and Financial Intelligence, Adam Szubin, testified to the Senate Banking Committee: “Iranian banks will not be able to clear U.S. dollars through New York, hold correspondent account relationships with U.S. financial institutions, or enter into financing arrangements with U.S. banks.” Ambassador Thomas Shannon from the State Department testified that there would not be an “exchange of dollars inside the U.S. financial system” and that Iran would not have access to the larger U.S. financial system.

(5) The Treasury Department issued a specific license to authorize Iran’s assets at Bank Muscat to be converted to U.S. dollars through the U.S. financial system. On February 24, 2016, OFAC issued a specific license to Bank Muscat authorizing Iranian assets worth roughly $5.7 billion to flow through the U.S. financial system. The Bank Muscat specific license expired on February 28, 2017.

(6) For the duration of the specific license, Bank Muscat was authorized to use the U.S. financial system to convert additional future Iranian deposits, known as “fresh funds.” One Bank Muscat executive wrote this was a “gigantic breakthrough which has assured Iran of almost full global financial inclusion.”

(7) U.S. government officials encouraged two U.S. banks to convert Iran’s rials. Following the issuance of the specific license, OFAC contacted two U.S. banks to convert Iran’s rials to U.S. dollars. A State Department official even suggested that Secretary Kerry or Secretary Lew should contact the U.S. banks and encourage them to facilitate the conversion. Both banks declined to complete the transaction due to compliance, reputational, and legal risks associated with doing business with Iran.

(8) The Senior State Department Official negotiating implementation of the JCPOA understood giving Iran access to the U.S. financial system was prohibited by U.S. sanctions and outside the relief under the JCPOA or JPOA. That official wrote to his Iranian counterpart that the specific license “exceeded” the U.S. commitments under the JCPOA. He continued that the Treasury Department authorized the transaction “as a gesture of support” to Iran.

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(10) Materials prepared for Treasury Secretary Lew to testify before Congress about the JCPOA suggested he disclose the specific license to Bank Muscat “if pressed.” In his testimony, Secretary Lew did not disclose the specific license authorizing Iran to access the U.S. financial system. In fact, the Treasury Department maintained Iran was not given access to the U.S. financial system, nor was the U.S. government working to give them access.

(11) When the two U.S. correspondent banks declined to convert the funds, other options were considered. The other options considered included Bank Muscat coordinating with the Federal Reserve Bank of New York, the Bank for International Settlements, and the Central Bank of Germany. None of these options were effectuated.

(12) The State Department and Treasury Department held at least 200 meetings or “roadshows” around the world to encourage other countries to do business with Iran. Treasury Department officials downplayed any potential future penalties or fines, stating that 95 percent of the time, OFAC sends a warning letter or takes no action. And at least one European regulator who attended an OFAC roadshow, commented that foreign financial institutions felt “political pressure” to conduct business with Iran and Iranian companies.

(13) Treasury Department officials proactively contacted foreign financial institutions to provide information about the JCPOA’s sanctions relief. In one example, an OFAC compliance officer proactively contacted a foreign financial institution to make sure they “understood Iran sanctions relief.” The communication left the foreign financial institution confused, since that foreign financial institution “had no business with Iran.” (14) Iran’s assets remained at Bank Muscat. Despite issuing the specific license to allow Iran to access the U.S. financial system, Bank Muscat was unable to effectuate the conversion using the U.S. dollar. The State Department indicated Iran converted the funds in small increments using European banks and without accessing the U.S. financial system.

Recommendations

(1) Informed future negotiations with Iran. The current Administration should be aware of the importance of Iran accessing the U.S. financial system in any future negotiations regarding sanctions relief with Iran. The Administration should brief congressional committees of jurisdiction 8 and oversight committees periodically and on request of the status of any future negotiations.

(2) Congress should require the Treasury Department to provide notice of any specific license to Congress. The notice to Congress should be provided to all congressional committees of jurisdiction and oversight committees within a reasonable time prior to the license taking effect. The notice should, at minimum, include a copy of the specific license.

(3) Understand other sanctions relief granted to Iran. The Treasury Department should immediately provide all JPOA and JCPOA related specific licenses and comfort letters to congressional committees of jurisdiction and oversight committees.

(4) Agencies should increase coordination with regard to sanctions. The State and Treasury Departments should closely coordinate when discussing sanctions relief to ensure that State Department policy goals can be properly executed with Treasury Department tools, such as general or specific licenses.

(5) Increased policing of U.S. sanctions policies. OFAC should effectively police U.S. sanctions and ensure the current sanctions regime is properly enforced. OFAC officials should also refrain from telling foreign persons and entities that violations of U.S. sanctions only result in an enforcement action five percent of the time.

Illustration: Pixabay