organization:us treasury

  • Tom Stevenson reviews ‘AngloArabia’ by David Wearing · LRB 9 May 2019
    https://www.lrb.co.uk/v41/n09/tom-stevenson/what-are-we-there-for

    It is a cliché that the United States and Britain are obsessed with Middle East oil, but the reason for the obsession is often misdiagnosed. Anglo-American interest in the enormous hydrocarbon reserves of the Persian Gulf does not derive from a need to fuel Western consumption . [...] Anglo-American involvement in the Middle East has always been principally about the strategic advantage gained from controlling Persian Gulf hydrocarbons, not Western oil needs. [...]

    Other parts of the world – the US, Russia, Canada – have large deposits of crude oil, and current estimates suggest Venezuela has more proven reserves than Saudi Arabia. But Gulf oil lies close to the surface, where it is easy to get at by drilling; it is cheap to extract, and is unusually ‘light’ and ‘sweet’ (industry terms for high purity and richness). It is also located near the middle of the Eurasian landmass, yet outside the territory of any global power. Western Middle East policy, as explained by Jimmy Carter’s national security adviser, Zbigniew Brzezinski, was to control the Gulf and stop any Soviet influence over ‘that vital energy resource upon which the economic and political stability both of Western Europe and of Japan depend’, or else the ‘geopolitical balance of power would be tipped’. In a piece for the Atlantic a few months after 9/11, Benjamin Schwarz and Christopher Layne explained that Washington ‘assumes responsibility for stabilising the region’ because China, Japan and Europe will be dependent on its resources for the foreseeable future: ‘America wants to discourage those powers from developing the means to protect that resource for themselves.’ Much of US power is built on the back of the most profitable protection #racket in modern history.

    [...]

    It is difficult to overstate the role of the Gulf in the way the world is currently run. In recent years, under both Obama and Trump, there has been talk of plans for a US withdrawal from the Middle East and a ‘#pivot’ to Asia. If there are indeed such plans, it would suggest that recent US administrations are ignorant of the way the system over which they preside works.

    The Arab Gulf states have proved well-suited to their status as US client states, in part because their populations are small and their subjugated working class comes from Egypt and South Asia. [...] There are occasional disagreements between Gulf rulers and their Western counterparts over oil prices, but they never become serious. [...] The extreme conservatism of the Gulf monarchies, in which there is in principle no consultation with the citizenry, means that the use of oil sales to prop up Western economies – rather than to finance, say, domestic development – is met with little objection. Wearing describes the modern relationship between Western governments and the Gulf monarchs as ‘asymmetric interdependence’, which makes clear that both get plenty from the bargain. Since the West installed the monarchs, and its behaviour is essentially extractive, I see no reason to avoid describing the continued Anglo-American domination of the Gulf as #colonial.

    Saudi Arabia and the other five members of the Gulf Co-operation Council are collectively the world’s largest buyer of military equipment by a big margin. [...]. The deals are highly profitable for Western arms companies (Middle East governments account for around half of all British arms sales), but the charge that Western governments are in thrall to the arms companies is based on a misconception. Arms sales are useful principally as a way of bonding the Gulf monarchies to the Anglo-American military. Proprietary systems – from fighter jets to tanks and surveillance equipment – ensure lasting dependence, because training, maintenance and spare parts can be supplied only by the source country. Western governments are at least as keen on these deals as the arms industry, and much keener than the Gulf states themselves. While speaking publicly of the importance of fiscal responsibility, the US, Britain and France have competed with each other to bribe Gulf officials into signing unnecessary arms deals.

    Control of the Gulf also yields less obvious benefits. [...] in 1974, the US Treasury secretary, William Simon, secretly travelled to Saudi Arabia to secure an agreement that remains to this day the foundation of the dollar’s global dominance. As David Spiro has documented in The Hidden Hand of American Hegemony (1999), the US made its guarantees of Saudi and Arab Gulf security conditional on the use of oil sales to shore up the #dollar. Under Simon’s deal, Saudi Arabia agreed to buy massive tranches of US Treasury bonds in secret off-market transactions. In addition, the US compelled Saudi Arabia and the other Opec countries to set oil prices in dollars, and for many years Gulf oil shipments could be paid for only in dollars. A de facto oil standard replaced gold, assuring the dollar’s value and pre-eminence.

    For the people of the region, the effects of a century of AngloArabia have been less satisfactory. Since the start of the war in Yemen in 2015 some 75,000 people have been killed, not counting those who have died of disease or starvation. In that time Britain has supplied arms worth nearly £5 billion to the Saudi coalition fighting the Yemeni Houthis. The British army has supplied and maintained aircraft throughout the campaign; British and American military personnel are stationed in the command rooms in Riyadh; British special forces have trained Saudi soldiers fighting inside Yemen; and Saudi pilots continue to be trained at RAF Valley on Anglesey. The US is even more deeply involved: the US air force has provided mid-air refuelling for Saudi and Emirati aircraft – at no cost, it emerged in November. Britain and the US have also funnelled weapons via the UAE to militias in Yemen. If the Western powers wished, they could stop the conflict overnight by ending their involvement. Instead the British government has committed to the Saudi position. As foreign secretary, Philip Hammond pledged that Britain would continue to ‘support the Saudis in every practical way short of engaging in combat’. This is not only complicity but direct participation in a war that is as much the West’s as it is Saudi Arabia’s.

    The Gulf monarchies are family dictatorships kept in power by external design, and it shows. [...] The main threat to Western interests is internal: a rising reminiscent of Iran’s in 1979. To forestall such an event, Britain equips and trains the Saudi police force, has military advisers permanently attached to the internal Saudi security forces, and operates a strategic communications programme for the Saudi National Guard (called Sangcom). [...]

    As Wearing argues, ‘Britain could choose to swap its support for Washington’s global hegemony for a more neutral and peaceful position.’ It would be more difficult for the US to extricate itself. Contrary to much of the commentary in Washington, the strategic importance of the Middle East is increasing, not decreasing. The US may now be exporting hydrocarbons again, thanks to state-subsidised shale, but this has no effect on the leverage it gains from control of the Gulf. And impending climate catastrophe shows no sign of weaning any nation from fossil fuels , least of all the developing East Asian states. US planners seem confused about their own intentions in the Middle East. In 2017, the National Intelligence Council described the sense of neglect felt by the Gulf monarchies when they heard talk of the phantasmagorical Asia pivot. The report’s authors were profoundly negative about the region’s future, predicting ‘large-scale violence, civil wars, authority vacuums and humanitarian crises persisting for many years’. The causes, in the authors’ view, were ‘entrenched elites’ and ‘low oil prices’. They didn’t mention that maintenance of both these things is US policy.

    #etats-unis #arabie_saoudite #pétrole #moyen_orient #contrôle

  • #Elite gathering reveals anxiety over ‘class war’ and ‘#revolution’
    Financial Times 2 mai 2019

    The Milken Institute’s annual gathering of the investment, business and political elites this week featured big names from US Treasury secretary Steven Mnuchin to David Solomon, chief executive of Goldman Sachs.

    [..,]

    Despite widespread optimism about the outlook for the US economy and financial markets, some of the biggest names on Wall Street and in corporate America revealed their anxiety about the health of the economic model that made them millionaires and billionaires.

    Mr Milken himself, whose conference was known as the predators’ ball when he ruled over the booming junk bond market of the 1980s, was among those fretfully revisiting a debate that has not loomed so large since before the fall of the Berlin Wall: whether capitalism’s supremacy is threatened by creeping socialism.

    Mr Milken played a video of Thatcher from two years before she became UK prime minister. “Capitalism has a moral basis,” she declared, and “to be free, you have to be capitalist”. Applause rippled through the ballroom.

    In the run-up to the conference, essays by Ray Dalio of Bridgewater Associates and Jamie Dimon of JPMorgan Chase about the case for reforming capitalism to sustain it have been widely shared. Executives are paying close attention to what one investment company CEO called “the shift left of the Democratic party”, personified by 2020 presidential candidates Bernie Sanders and Elizabeth Warren and the social media success of Alexandria Ocasio-Cortez, the democratic socialist elected to Congress last year.

    Former Alphabet chairman Eric Schmidt issued his own rallying cry as he sat beside Ivanka Trump to discuss the conference theme of “driving shared prosperity”.

    “I’m concerned with this notion that somehow socialism’s going to creep back in, because capitalism is the source of our collective wealth as a country,” Mr Schmidt said, urging his fellow capitalists to get the message out that “it’s working”.

    Mr Milken asked Ken Griffin, the billionaire founder of the hedge fund Citadel, why young Americans seemed to have lost faith in the free market, flashing up a poll on the screen behind them which showed 44 per cent of millennials saying they would prefer to live in a socialist country.

    “You and I grew up in a different era, where the cold war was waking up and there was a great debate in America about the strengths and weaknesses of socialism as compared to the economic freedom that we enjoy in our country,” Mr Griffin replied, saying that they had “seen that question answered” with the collapse of the Soviet Union.

    The younger generation that support socialism are “people who don’t know history”, he said.

    Guggenheim Partners’ Alan Schwartz put the risks of rising income inequality more starkly. “You take the average person . . . they’re just basically saying something that used to be 50:50 is now 60:40; it’s not working for me,” he told another conference session, pointing to the gap between wage growth and the growth of corporate profits.

    “If you look at the rightwing and the leftwing, what’s really coming is class warfare,” he warned. “Throughout centuries what we’ve seen when the masses think the elites have too much, one of two things happens: legislation to redistribute the wealth . . . or revolution to redistribute poverty. Those are the two choices historically and debating it back and forth, saying ‘no, it’s capitalism; no, it’s socialism’ is what creates revolution.”

    There was less discussion of the prospect of higher taxes on America’s wealthiest, which some Democrats have proposed to finance an agenda many executives support, such as investing in education, infrastructure and retraining a workforce threatened by technological disruption and globalisation.

    One top investment company executive echoed the common view among the conference’s wealthy speakers: “ Punitive #redistribution won’t work.”

    But another financial services executive, who donated to Hillary Clinton’s US presidential campaign in 2016, told the Financial Times: “ I’d pay 5 per cent more in tax to make the world a slightly less scary place .”

    #capitalisme #anxiété #capitalistes

  • Exclusive: The Pentagon’s Massive Accounting Fraud Exposed
    https://www.thenation.com/article/pentagon-audit-budget-fraud

    Now, a Nation investigation has uncovered an explanation for the Pentagon’s foot-dragging: For decades, the DoD’s leaders and accountants have been perpetrating a gigantic, unconstitutional accounting fraud, deliberately cooking the books to mislead the Congress and drive the DoD’s budgets ever higher, regardless of military necessity. DoD has literally been making up numbers in its annual financial reports to Congress—representing trillions of dollars’ worth of seemingly nonexistent transactions—knowing that Congress would rely on those misleading reports when deciding how much money to give the DoD the following year, according to government records and interviews with current and former DoD officials, congressional sources, and independent experts.

    “If the DOD were being honest, they would go to Congress and say, ‘All these proposed budgets we’ve been presenting to you are a bunch of garbage,’ ” said Jack Armstrong, who spent more than five years in the Defense Department’s Office of Inspector General as a supervisory director of audits before retiring in 2011.

    The fraud works like this. When the DoD submits its annual budget requests to Congress, it sends along the prior year’s financial reports, which contain fabricated numbers. The fabricated numbers disguise the fact that the DoD does not always spend all of the money Congress allocates in a given year. However, instead of returning such unspent funds to the US Treasury, as the law requires, the Pentagon sometimes launders and shifts such moneys to other parts of the DoD’s budget.

  • America manages to infuriate both Sunni and Shia — FT.com
    https://next.ft.com/content/aa1a17dc-3255-11e6-bda0-04585c31b153

    But the reasons for Iran’s disaffection are very different. Euphoria greeted the lifting of punishing international sanctions in exchange for Tehran agreeing to externally monitored curbs on its nuclear programme. Iranians saw the chance to re-enter the world and reintegrate with its markets. Foreign investors scented an emerging markets bonanza of a scale last seen when the Soviet empire collapsed.

    That optimism has largely evaporated, and the reason goes by the prosaic name of the Office of Foreign Assets Control, a branch of the US Treasury with extraordinary power and extraterritorial reach. International sanctions related to Iran’s nuclear programme have been lifted but #Ofac maintains in place robust “secondary sanctions” on individuals and entities the US accuses of “state-sponsored terrorism”, chief among them the Islamic Revolutionary Guard Corps (IRGC), the regime’s enforcer at home and strike force abroad. Ofac’s sanctions brought Iran to the negotiating table but the economic dislocation they caused enabled the IRGC to build a business empire. Any foreign investor, or bank financing deals with even tangential ties to the revolutionary guard, risks being shut out of the US banking system.

    [...]

    As Adam Smith of Gibson Dunn, a leading US law firm, explains, Ofac’s power is greater than its formal regulatory role suggests, based on “ambiguity” that makes banks in particular do more than what the law strictly requires. “They have educated international banks to do this,” he says. “We don’t live in a purely legal world.”

    Part of that education has been through punitive fines for breaking Iran sanctions, such as the nearly $9bn on BNP Paribas or around $1bn on Standard Chartered. The risk of being cut off from US credit markets is a formidable deterrent to any contact with Iran. “There is no institution so big that it can’t be de-banked,” says Mr Smith.

    Some deals, such as Tehran’s plan to purchase more than 100 Airbus jetliners, are supposedly protected by the nuclear accord. Even that deal, requiring billions in credit, is on hold.

    Ofac staff, Mr Smith points out, are the “same people who have spent their entire professional lives trying to eliminate access to Iran … and the banks steer clear of them. It’s a dissonance problem as much as a policy one.”

    What makes the problem even more intractable is the number of actors, of which the US executive is just one (Ofac accounted for only about $1bn of the BNP Paribas penalty). Aggressive actors on Iran include the US Congress, different layers of the judiciary, state banking regulators, states that divest from companies with links to Iran — the list goes on. Iranian officials looking at Washington probably find their own famously convoluted structure of power straightforward by comparison. But if their leaders feel swindled by the historic nuclear deal, then its future is moot.

    #Etats-Unis #hors_la_loi #lois

  • The ruling class meets at Davos - World Socialist Web Site

    http://www.wsws.org/en/articles/2016/01/19/pers-j19.html

    The ruling class meets at Davos
    19 January 2016

    On Wednesday, some 2,500 corporate executives, celebrities and government officials will converge at the World Economic Forum in Davos, Switzerland to discuss “improving the state of the world” between skiing the alpine slopes and $1,000-a-plate gala dinners.

    The heads of Goldman Sachs, JPMorgan Chase and virtually every other major bank and hedge fund will rub shoulders with the government officials nominally in charge of regulating them, including US Treasury Secretary Jacob Lew, Commerce Secretary Penny Pritzker and European Central Bank President Mario Draghi.

    #davos #ruling_class #refondation_du_capitalisme

  • US Treasury Dept wants to know which offshore crimelords are buying all those NYC and Miami penthouses / Boing Boing
    http://boingboing.net/2016/01/14/us-treasury-dept-wants-to-know.html

    It’s an open secret that the world’s luxury property boom is being driven by crooked rich people in the former Soviet Union, Asia, and Sub-Saharan Africa who have looted their homelands and want to stash the money out of reach of any new dictators who might come along and change which oligarchs are favored and which are not.

    This has had the side-effect of transforming housing — a fundamental human need — into a asset-class that’s being optimized as safe-deposit boxes in the sky, to the enormous detriment of working people and their quality of life — not to mention what it does to the poor. It also creates its own crime boom.

    Now the US Treasury is demanding that the actual owners of million-dollar-plus properties in Miami and NYC be disclosed, realtors are predicting a crash in luxury property, tacitly admitting that they are engaged in money-laundering that can only work if they can disguise the identities of their paymasters.

    #immobilier #spéculation

  • #US blacklists companies accused of #Hezbollah ties
    http://english.al-akhbar.com/content/us-blacklists-companies-accused-hezbollah-ties

    The #united_states moved Thursday to blacklist a group of companies it claimed covertly helped #Lebanon's powerful Hezbollah movement acquire components for surveillance #drones. The US Treasury placed sanctions on Beirut-based Stars Group Holding, which it said purchased electronics and other technology via offices in China and Dubai to support Hezbollah’s military operations. That included the development of unmanned aerial vehicles (UAVs) that the Treasury claimed were used against rebels in Syria and for surveillance of Israeli sites. read more

  • #Boeing to sell spare plane parts to #Iran
    http://english.al-akhbar.com/content/boeing-sell-spare-plane-parts-iran

    Boeing Co, the world’s biggest airplane maker, and engine maker General Electric Co said on Friday they had received licenses from the US Treasury Department to export certain spare parts for commercial aircraft to Iran under a temporary #sanctions relief deal that began in January. GE spokesman Rick Kennedy said the Treasury had approved the company’s application to service 18 engines sold to Iran in the late 1970s. He said GE officials would meet with officials from Iran flag carrier Iranair and MTU in Istanbul next week to discuss Iran’s needs. read more

    #air_safety #Top_News

  • US Law Overturns #Lebanon Bank Secrecy
    http://english.al-akhbar.com/content/us-law-overturns-lebanon-bank-secrecy

    BDL had attempted to reach a compromise regarding the reporting process under FATCA, proposing to the #US_Treasury_Department an arrangement where BDL reports on behalf of local banks. (Photo: Marwan Tahtah) BDL had attempted to reach a compromise regarding the reporting process under FATCA, proposing to the US Treasury Department an arrangement where BDL reports on behalf of local banks. (Photo: Marwan Tahtah)

    The deposits of (...)

    #Economy #Articles #Central_Bank_of_Lebanon #Lebanon_Banks

  • Plans for military surveillance of Americans’ financial records - World Socialist Web Site

    http://www.wsws.org/en/articles/2013/03/19/surv-m19.html

    Plans for military surveillance of Americans’ financial records
    By Ed Hightower
    19 March 2013

    Reuters reported last week that it had viewed a document from the US Treasury Department detailing plans to provide military intelligence agencies with unfettered access to financial records of US citizens. Under the new plan, there will be no need to request access to such records on a case-by-case basis.
    The WSWS needs your support!

    The document, dated March 4, calls for the Office of the Director of National Intelligence to oversee the linking of the Treasury’s database on suspicious customer activity, known as the Financial Crimes Enforcement Network (FinCEN), with a computer network for US law enforcement and military agencies called the Joint Worldwide Intelligence Communications System.

    #surveillance #états-unis

  • Is This Really the End of Neoliberalism? (2009)
    by DAVID HARVEY

    http://www.counterpunch.org/2009/03/13/is-this-really-the-end-of-neoliberalism

    Does this crisis signal the end of neo-liberalism? My answer is that it depends what you mean by neo-liberalism. My interpretation is that it’s a class project, masked by a lot of neo-liberal rhetoric about individual freedom, liberty, personal responsibility, privatisation and the free market. These were means, however, towards the restoration and consolidation of class power, and that neo-liberal project has been fairly successful.

    One of the basic principles that was set up in the 1970s was that state power should protect financial institutions at all costs. This is the principle that was worked out in New York City crisis in the mid-1970s, and was first defined internationally when Mexico threatened to go bankrupt in 1982. This would have destroyed the New York investment banks, so the US Treasury and the IMF combined to bail Mexico out. But in so doing they mandated austerity for the Mexican population. In other words they protected the banks and destroyed the people, and this has been the standard practice in the IMF ever since. The current bailout is the same old story, one more time, except bigger.

    What happened in the US was that 8 men gave us a 3 page document which pointed a gun at everybody and said ‘give us $700 billion or else’. This to me was like a financial coup, against the government and the population of the US. Which means you’re not going to come out of this crisis with a crisis of the capitalist class; you’re going to come out of this with a far greater consolidation of the capitalist class than there has been in the past. We’re going to end up with four or five major banking institutions in the United States and nothing else. Many on Wall Street are thriving right now. Lazard’s, because it specialises in mergers and acquisitions, is making megabucks. Some people are going to be burned, but overall it’s a massive consolidation of financial power. There’s a great line from Andrew Mellon (US banker, Secretary of the Treasury 1921-32), who said that in a crisis, assets return to their rightful owners. A financial crisis is a way of rationalising what is irrational – for example the immense crash in Asia in 1997-8 resulted in a new model of capitalist development. Disruptions lead to a reconfiguration, a new form of class power. It could go wrong, politically. The bank bailout has been fought over in the US Senate and elsewhere, so the political class may not easily go along – they can put up roadblocks but so far they have caved in and not nationalised the banks.

    But this can lead to a deeper political struggle: there is a strong sense of questioning why are we empowering all the people who got us into this mess. Questions are being asked about Obama’s choice of economic advisers – for example Larry Summers who was Secretary of the Treasury at the key moment when a lot of things started to go really wrong, at the end of the Clinton administration. Why would you now bring in so many of the characters who are pro-Wall Street, pro-finance capital, who did the bidding of finance capital back then? Which is not to say that they aren’t going to redesign the financial architecture because I think they know it’s got to be redesigned, but who are they going to redesign it for? People are really discontented about Obama’s economic team, even in the mainstream press.

    A new state financial architecture is required. I don’t think that all existing institutions like the Bank of International Settlements and even the IMF should be abolished; I think we will need them but they have to be revolutionarily transformed. The big question is who will control them and what their architecture will be. We will need people, experts with some sort of understanding of how those institutions do work and can work. And this is very dangerous because, as we can see right now, when the state looks to see who can understand what is going on in Wall Street, they think only insiders can.

    #néolibéralisme
    #Harvey