http://ping.fm/gAqSM Consumer Financial Product Courses. Gold,Silver,Forex,Stocks,Bonds,Mutual Funds,Budgeting,Debt Settlement,Debt Negotiation, Social Security, Medicare.

http://ping.fm/gAqSM Consumer Financial Product Courses. Gold,Silver,Forex,Stocks,Bonds,Mutual Funds,Budgeting,Debt Settlement,Debt Negotiation, Social Security, Medicare.

http://ping.fm/gAqSM Consumer Financial Product Courses. Gold,Silver,Forex,Stocks,Bonds,Mutual Funds,Budgeting,Debt Settlement,Debt Negotiation, Social Security, Medicare.

Good morning. Thank you, Hank, and thank you to the Council on Foreign Relations for hosting us. It is a pleasure to be with you.

New York is the heart of the world’s financial system and Treasury Secretaries often come here to talk about the role that system plays in our economic health. Today, I want to talk about something a little different – the financial system’s importance to our national security.

Throughout history, Treasury Secretaries have focused their efforts on promoting policies and actions to help ensure the safety and soundness of our financial system. Today, the Secretary must focus on the security of the financial system, as well as its safety and soundness.

Global financial flows are growing rapidly and greatly exceed the trade in goods and services. This is a positive trend; open finance and free trade enhance the economic security and prosperity of people in this country and around the world. But bad actors seek to abuse this global financial system to support their illicit purposes. The world of finance and the world of terror and weapons proliferation intersect through the same system that spreads prosperity at home and abroad.

National security is not only an integral part of my job; it is also a sobering one. Our enemies are determined, and there are significant threats that aren’t going away anytime soon. As part of the National Security Council, I work with the President and his Cabinet to address these threats. Treasury is now a key pillar of the President’s national security and foreign policy strategy.

An integrated world economy presents challenges and opportunities. The challenge and importance of protecting the integrity of our global financial network have never been greater. Our financial system also presents us with enormous opportunities because technology and integration have made it more difficult for anyone using the financial system to hide. This makes financial intelligence a particularly valuable tool to detect and disrupt bad actors. Recognizing this, Congress and the President have provided an expanded set of tools that allow innovative and more focused uses of financial intelligence. These targeted financial measures are proving to be quite effective, flying in the face of a widely-held historical view that dismisses sanctions as ineffective, harmful to innocents, or both.

There are certainly times when that conventional wisdom is true, particularly with broad, country-wide sanctions that are perceived as political statements. It can be difficult to persuade other governments and private businesses to join such sanctions. Even when other governments agree with us politically, they generally tend to be unwilling to force their nation’s businesses to forego opportunities that remain open to others. When the private sector views such broad sanctions as unwelcome political barriers to trade, companies are unmotivated to do more than what is minimally necessary to comply. Indeed, history is replete with examples of participants in the global economy working to evade such sanctions while their government turns a blind eye.

The dynamic is different when we instead impose financial measures specifically targeted against those individuals or entities engaging in illicit conduct. When we use reliable financial intelligence to build conduct-based cases, it is much easier to achieve a multilateral alignment of interests. It is difficult for another nation, even one which is not a close political ally, to disagree with targeted measures to isolate actors who are demonstrably engaged in conduct that threatens human rights or global security. And multilateral support is critical to the success of financial measures in today’s world.

When we use targeted financial measures aimed at explicit wrongdoing, the private sector around the world tends to support these measures thereby amplifying their effectiveness. Rather than grudgingly complying with, or even trying to evade our sanctions, we have seen the banking industry in particular voluntarily go above and beyond their legal requirements because they do not want to do business with terrorist supporters, money launderers or proliferators. This is a product of good corporate citizenship and a desire to protect their institution’s reputation.

Once some in the private sector decide to cut off those we have targeted, it becomes an even greater reputational risk for others not to follow, and so they often do. Such voluntary implementation by the private sector in turn makes it even more palatable for governments to impose similar measures, thus creating a mutually-reinforcing cycle of public and private action. In the end, if we do our jobs well, especially by sharing critical information with the key governmental and private sector parties around the world, there is the potential for us to create a multilateral coalition to apply significant pressure on those who threaten our security.

Because we are learning to apply our tools in this way, our financial actions have produced demonstrable impacts on threats ranging from terrorist groups to narcotics cartels, and on dangerous regimes in North Korea and Iran. This new strategy uses conduct-based, intelligence-grounded, targeted financial measures to harness the power of the private sector and form the basis of multilateral coalitions, adding an innovative financial dimension to our national security effort.

Treasury can effectively use these tools largely because the U.S. is the key hub of the global financial system; we are the banker to the world. We understand that maintaining this standing, which makes our strategy possible, requires focused and fact-based action, so that the private sector and other governments are most likely to amplify our measures.

Financial Intelligence

The starting point for Treasury’s approach to targeted financial measures is information. To identify and act against threats, we need specific, current, and reliable intelligence. And the global financial system is a rich source of the information we need.

Illicit actors who otherwise try to avoid detection often use the formal financial system because there is no good alternative and, in many cases, no alternative at all. Proliferation networks need import and export financing to buy materials and equipment. Rogue nations depend on the financial system for everything from holding reserves to currency transactions. Terrorist networks use the system to raise and move funds when more opaque alternatives are too cumbersome or risky.

These transactions typically leave a trail of detailed information which we can follow to identify key actors and their networks. Opening an account or initiating a funds transfer requires a name, an address, a phone number; identification information that does not lie. Unlike a phone call or conversation that essentially disappears if it’s not captured at the moment it occurs, the financial system produces records that tend to survive.

In 2004, Treasury became the first finance ministry in the world to develop in-house intelligence and analytic expertise to use this information. We now work with the broader intelligence community, requesting the data necessary to understand the financial networks that threaten our national security. Treasury then evaluates this information with an eye towards potential action – be it a designation, an advisory to the private sector, or a conversation to alert other finance ministers to a particular threat or bad actor.

It is also critical that the government handle and use the information it gathers appropriately. As Treasury implements these efforts to help protect national security, we simultaneously take rigorous steps to protect privacy and preserve civil liberties. We seek to discover those who are abusing the system, keeping in place sufficient controls and safeguards to protect those who are not.

Innovative Use of Financial Authorities

When considering how best to approach a threat, Treasury draws on an array of powerful authorities. Some are very old, such as the Trading with the Enemy Act, originally passed in 1917. Some are much newer, such as the authority to cut off access to the U.S. financial system for an entity that is “of primary money laundering concern” under Section 311 of the PATRIOT Act.

The innovative use of these authorities against national security threats is fairly recent. We have drawn on lessons learned from earlier programs aimed at Colombian drug cartels. Over the last ten years, as these cartels, their associates and financial holdings have appeared on a Treasury list designating them as narcotic traffickers, U.S. banks have frozen their accounts and assets. Colombian and other countries’ banks have then followed suit, refusing to hold or move their money. When given good information, honest bankers won’t do business with these criminals. Treasury has designated over 1,400 individuals and companies, and caused the disruption or seizure of more than $1 billion in proceeds related to these cartels. The cartels refer to being placed on the Treasury list as “muerte civil” or civil death.

Since September 11th, Treasury has been applying these lessons in a more focused effort against global terrorist threats, beginning with a September 23, 2001 Executive Order that authorized the identification and designation of terrorists and their facilitators worldwide. We have based our actions on clear evidence and encouraged the private sector and other nations to follow suit. Under a U.N. resolution, worldwide, targeted sanctions are now in place against members and supporters of al Qaida and the Taliban. The European Union and other nations have joined the United States in designating the terrorist group Hamas, and the United Nations has designated individuals responsible for the genocide in Darfur.

The targeted financial measures used against terrorists and their supporters are likely to be as effective in combating proliferation networks. While terrorist organizations may attempt to shift their financial dealings to informal networks or cash couriers, proliferators tend to depend upon access to the formal financial system, where our controls and visibility are greatest. Those seeking to procure items for a nuclear program, for example, often seek to disguise their efforts by making the transaction appear to be for a legitimate commercial purpose. Those who participate in a proliferation transaction because of profit, rather than ideology, are susceptible to being deterred from such transactions if we can credibly threaten to publicly expose and isolate them. Recognizing this fact, in 2005, President Bush took a visionary first step—issuing a new Executive Order authorizing Treasury to target proliferators and their support networks, just as we do terrorists.

The consequences of these targeted measures can be seen on a number of levels, some obvious and some less so. Most directly, when the U.S. designates a terrorist supporter or a weapons proliferator, U.S. entities and persons, wherever located, must freeze the target’s assets and stop doing business with them. Given the U.S. financial system’s prominence, this can have a severe impact. All major U.S. and foreign banks have offices dedicated to protecting their institutions from infiltration by illicit money. Our designations let these officials know who they need to protect against.

These measures have also led to a base of international, private sector support. Reputable banks around the world don’t want to hold accounts for terrorists and proliferators any more than U.S. banks do. My strong view, based on personal experience, is that the major financial institutions, and the individuals who run them, care deeply about the integrity of the financial system and the reputations of the institutions they run. They genuinely want to be good corporate citizens and want nothing to do with illegal behavior. Additionally, a lack of vigilance on their part is not worth the risk of a regulatory action.

These institutions, which are, in a sense, the true gatekeepers of the financial system, have also become more effective in detecting and combating illicit money flows. As a result, they have made us all safer, and they have become sounder and stronger. We strive to make information-sharing a truly two-way street by expanding and improving the information we provide, to help them make better-informed decisions about their customers.

The information the financial sector shares with the government is critically important to our efforts, and they do so under obligations that they sometimes perceive as unduly burdensome. We will continue to work to ensure that the security benefits justify the regulatory obligations, and will make adjustments as warranted. If we communicate well with the private sector, I believe that we can make our regulations more efficient and simultaneously be more effective in protecting our national security.

Targeted Financial Measures in Action

The impacts of these new financial measures are evident around the world. I would like to highlight a few notable examples.

Terrorism

Treasury continues an intensive effort to track and disrupt terrorist financing that has been effective on several levels. This effort has involved government-wide cooperation, applying law enforcement, military, intelligence, and financial tools depending on the target and the situation. While individual terrorist attacks may be inexpensive to carry out, global terrorist groups need large sums of money to pay operatives, to recruit and train members, to acquire false documents and travel. By exploiting the financial intelligence generated by that activity and combining it with other available information, we have made progress in mapping these terrorist networks. In many ways, that has been the Treasury Department’s most important, but least visible, contribution to the fight against terrorist groups.

Our actions have had additional disruptive effects. We have frozen assets and closed off conduits, such as terrorist-supporting charities in the United States. Some international entities have shut down simply by virtue of being publicly designated and exposed. When we restrict the flow of funds to terrorists groups or disable a link in their financing chain, they then have to shift their focus from planning attacks to concern about their financial viability. These designations may also have a deterrent effect on the financiers who want to keep one foot in the legitimate business world while supporting murder and violence on the side.

When the target provides support to al Qaida or the Taliban, we have perhaps the best example of a multilateral program of targeted financial measures: a U.N. Security Council list that requires all member states to freeze the assets of designated actors. Even when we don’t have that multilateral regime, such as in the case of financial supporters of Hizballah or the Palestinian Islamic Jihad, we have found that our designations make an impact beyond their formal, legal reach, as many banks around the world, who are not obliged to do so, screen their customers and transactions against our list of designated terrorist supporters.

North Korea

In North Korea, we have used targeted financial measures to help protect the U.S. financial system from the DPRK’s illicit financial conduct. We used our authorities to designate several North Korean entities involved in its weapons programs. Because it served as a primary conduit for North Korean illicit actors to access the international financial system, we have also cut off Macau-based Banco Delta Asia’s access to the U.S. financial system.

The real impact, however, has come from the information made public in conjunction with these actions. Worldwide, private financial institutions decided to terminate their business relationships with the designated entities as well as others suspected of engaging in similar conduct. The result is North Korea’s virtual isolation from the global financial system. The effect on North Korea has been significant, because even the most reclusive regime depends on access to the international financial system

It is clear to everyone in the world today that the U.S. government takes very seriously its responsibility to preserve the security of the financial system and protect it against abuses of WMD proliferation, money laundering and other illegal activities. We have potent tools that can change behavior. In this case, our financial measures are part of a wider campaign to change North Korean behavior, including the State Department-led effort to bring about a de-nuclearized Korean Peninsula.

Iran

We are currently in the midst of an effort to apply these same lessons to the very real threat posed by Iran. It is well known that Iran is pursuing nuclear weapons in violation of international agreements and channeling hundreds of millions of dollars to terrorist groups. Still, when I was first briefed on the details, I was surprised to learn the extent to which Iran was exploiting global financial ties to pursue and finance its dangerous behavior, and the extent to which reputable financial institutions were being drawn into these schemes. Financial institutions that would exercise extreme caution to avoid even small-time crooks were unknowingly handling the money of Iran’s proliferation front companies. I knew that the people who run these financial institutions would be shocked and disturbed, to say the least, if they were aware of the facts.

So, to combat the Iranian threat, we embarked on a strategy that combines the use of intelligence-based targeted financial measures with a concentrated outreach strategy to inform financial leaders, in governments and, especially in the private sector, of what was happening. Treasury put together a briefing describing the range of Iran’s deceptive financial conduct. We explained how Iran uses front companies and other mechanisms that make it difficult, if not impossible, for businesses dealing with Iran to “know their customer” or counterparty. We also explained how the Iranian regime uses its state-owned banks to pursue its missile procurement and nuclear programs, as well as fund terrorism. Repeatedly, state-owned Iranian banks, including the Central Bank of Iran, ask other financial institutions to remove their names from global transactions. This practice aims to evade risk-management controls and threatens to involve responsible financial institutions in transactions they would never knowingly handle.

At around the same time, in September 2006, Treasury cut Iran’s state-owned Bank Saderat off from any direct or indirect access to the U.S. financial system, and publicly disclosed some of the information underlying that decision, including that the Central Bank of Iran was sending money through Bank Saderat to Hizballah. We also disclosed evidence that Bank Saderat was providing financial services to other terrorist groups such as the Palestinian Islamic Jihad and Hamas. Almost immediately, financial institutions around the world began to adjust their business with all Iranian state-owned banks and with Bank Saderat, specifically. The private sector, when presented with our solid evidence, is able to act much more quickly than governments who often lack the necessary authority or the political will to take action on their own.

As part of our outreach, we shared extensive information with some of our allies about another Iranian state-owned bank, Bank Sepah, which was providing financial services to Iranian missile firms and trying to disguise its activities. It was our hope that another nation would take the lead in pursuing an action against Bank Sepah, especially when we learned that one of our allies had independently corroborated the information we had shared. Due to a lack of legal authorities and political will, that did not happen. So, in January of this year, we unilaterally designated Bank Sepah as a facilitator of Iranian proliferation.

Other nations often seem to lack the political will to take unilateral actions, and our goal has always been multilateral action. To that end, our outreach eventually proved to be successful when our allies joined us in persuading the United Nations Security Council to blacklist Bank Sepah in its most recent resolution against Iran. Now the entire world must freeze Bank Sepah’s assets, and isolate it from the global financial system.

As a result of our outreach and targeted measures, financial institutions around the world are more sensitive than ever about the very substantial risks posed by doing business with Iran. Most of the world’s top financial institutions have now dramatically reduced their Iranian business or stopped it altogether. For the most part, they are not legally required to take these steps but have decided, as a matter of prudence and integrity that they do not want to be the bankers for such a regime. To those banks that have decided to stop dollar-based business, but continue to transact Iran’s business in other currencies, I would say that the risk of transacting Iran’s business is present in every currency. The engagement of Iran’s state-controlled banks and its Central Bank in advancing the regime’s policies should be cause for great concern to financial institutions around the world.

Due to our State Department’s outstanding work, the UN has passed two unanimous Security Council resolutions sanctioning Iran, and is working on a third. As we approach this next resolution, we are increasingly focused on the role of Iran’s Revolutionary Guard Corps (IRGC). The IRGC, a paramilitary arm of the regime, has been directly involved in the planning and support of terrorist acts, as well as funding and training other terrorist groups to pursue the military objectives of the regime. Based on its role in proliferation activities, the UN has targeted IRGC companies and officials in recent resolutions. The IRGC is so deeply entrenched in Iran’s economy and commercial enterprises, it is increasingly likely that if you are doing business with Iran, you are somehow doing business with the IRGC.

In a country where the regime uses its state-owned banks, military entities, and state-run industries to fund, facilitate, and conceal its WMD and missile programs, the eyes of the world will inevitably turn to the decision maker, the regime itself, and demand that it be held accountable. By approaching the Iran issue the way we have, focusing intensely on specific illicit conduct and making the private sector a partner in the effort, we are in a better position to discuss broader measures with our allies. While the financial isolation of the entire regime may impose costs on our partners and on us, it would be far less costly than a nuclear-armed Iran.

The Way Forward

As these examples show, the innovative use of targeted financial measures has advanced our national security, but there are gaps in this effort that must be filled.

One of the greatest challenges of this century will be to keep the most dangerous weapons out of the hands of dangerous people. As I travel and meet with my colleagues in finance ministries around the world, everyone acknowledges that we must find effective ways to deal with these threats, short of military measures. Yet other nations are not moving quickly enough to accomplish this goal.

Specifically, nations must implement the laws necessary to give their finance ministries the authority to access and use intelligence, and they must move to integrate financial and security functions. This will enable further cooperation and multilateral action, which is in the world’s best interest. And, these authorities must be available for use against terrorist financing, money laundering and the dangerous, emerging practice of proliferation financing.

Although there has not been a terrorist attack on American soil since 9/11, terrorists have struck London, Madrid, Jakarta, Mumbai, Amman, Bali, and Istanbul. Several of our key allies who support the global effort against terrorism have yet to take such basic steps as adequately criminalizing money laundering and terrorist financing. An even greater number of countries have failed to develop the national authorities and capabilities necessary to apply targeted financial measures to any terrorist group other than Al Qaida and the Taliban. We have a shared responsibility for our mutual security, and our allies, who confront risks at least as great as those confronting the United States, must find the political will to enact the authorities they need to join in effective multilateral action. These authorities may not deal a knock-out-punch, but they can and will produce results and change behavior.

My finance ministry counterparts and I have the same responsibility: to broaden our role beyond economic stewardship and become valuable contributors to help ensure our countries’ and our citizens’ security. In performing these dual roles we seek essentially the same end: preserving the global financial system’s integrity, which will enhance economic security and prosperity for people around the world.

POTUS Obama now has a well-established pattern of rewarding political campaign donors with positions on his campaign advisory teams, Obama-Biden transition teams, and in his administration. Unsurprisingly, many of these folks have historical relationships with Obama as well.

Take for example RBO’s May 4 article about Harry C. Boyte, just another radical Alinskyite Obama supporter, in which we wrote about Boyte’s co-chairmanship of the “civic engagement group”, which was part of the Obama 2008 Urban Policy Committee.

The Committee itself was chaired by Robert Weissbourd (right), president of RW Ventures, LLC, a regional and community economic development consulting firm, and as well as former Vice-President of Shorebank Corporation and Executive Vice-President of Shorebank Chicago Companies. Weissbourd also served as a member of the Obama-Biden transition team.

Before we go any further, let’s be clear that Weissbourd was not only an Obama bundler committed to raising a minimum of $50,000, but he also contributed significant funds to Obama’s campaigns from his own bank account: $3600 in 2007 to Obama for America and $29,373 to the Obama Victory Fund (thereby achieving Mega-Donor Status) in 2008; $5000 in 2005 to help launch Obama’s Hopefund Inc., with another $5000 in 2006; and $9113 in 2003-2004 to Obama for Illinois for Obama’s U.S. senatorial campaign.

In 1998 Weissbourd was the recipient of an alumni award at the University of Chicago:

Note the mention of “investing in … community organizations.” It would appear that Weissbourd’s “investing” extends to “investing” in future presidents, as well.

Chicago Annenberg Challenge

In 1995 Obama was the founding President of the Chicago Annenberg Challenge and served as Chairman of the Board of Directors from 1995–1999. Fred Lucas pointed out October 15, 2008, for CNSNews.com, that during that time:

Weissbourd’s Ventures LLC profile states:

Additionally, to put Weissbroud’s involvement with Obama into perspective, we have this from a 2008 speaker’s profile:

One of those non-profit groups Lucas mentioned was, as stated in Weissbourd’s bio, Business and Professional People for the Public Interest (BPPPI or BPI), which received $375,000 in CAC grant funds between 1998 and 2002, while Obama served on CAC’s board. Meanwhile, Obama’s political campaign war chest received $105,513 from BPI staff and board members — including Robert Weissbourd.

FYI: Another BPI contributor is Cindy Moelis, who now serves as Obama’s Director for the Presidential Commission on White House Fellows; her husband, Robert S. Rivkin, who also served on the Obama-Biden transition team for Transportation, is General Counsel at the U.S. Department of Transportation.

Crossroads Fund

Weissbourd also served on the board of the Crossroads Fund. In his October 8, 2008, article, Even More Weathermen For Obama – Connections, Connections, Connections, Trevor Loudon wrote about the Crossroads Fund:

Steve Tappis [an original leading Weatherman] is a donor to the Crossroads Fund. Other donors in recent times might also be familar to keen Obama watchers.

A view of Crossroads’ annual reports here and here reveal some interesting names.

P4O petition signers Ted Pearson (CCDS, former Illinois CPUSA chairman) and Prexy Nesbitt (CPUSA and Black Radical Congress connections) also donate.

Unsurprisingly Bill Ayers and Bernardine Dohrn are also listed (in 2005).

Ayers and Dohrn are not just Crossroads donors, they are active fundraisers.

Interestingly, when Crossroads held anniversay celebrations [in 2007] they established a 25th Anniversary Host Committee.

Weissbourd is here among an interesting assortment of socialists, Maoists, Marxists, Communists, and progressive radicals if ever there was one.

Center for Neighborhood Technology

FYI: Anne Hallett, of whom RBO wrote last October, who is one of the co-founders with Bill Ayers in the Chicago Annenberg Challenge and an Obama campaign contributor, currently serves on CNT’s board with Weissbourd.

RBO wrote in October 2008:

This would mean that Hallett had a hand in selecting Obama for the CAC board — and a hand out when it came to the CAC granting funds to Cross City Campaign. Neat how that works, isn’t it.

Moving on, back to CNT:

Additionally, we do know that in 2005 and 2006 U.S. Senator Barack Obama delivered considerable earmark funds to CNT. RBO wrote September 17, 2008:

FYI: CNT’s head, “Jacky” Grimshaw, was an Obama friend and supporter. RBO wrote in September 2008:

On December 3, 2002, when Illinois governor-elect Rod Blagojevich named his transition committees, Obama was listed on the Health Committee and Grimshaw on the Transporation Committee.

Daily Kos poster abe57 wrote February 15, 2008:

[...]

PROCAN

Now we come to PROCAN — Progressive Chicago Area Network — on which board Weissbourd also served.

Here we have a huge info gap. There is little information available online about this group. This is the little we know; RBO would certainly be grateful to know where to find more.

In the September 14, 2004, Tribute to Lutrelle Palmer, Chicago journalist and community activist, Rep. Danny K. Davis (D-Ill.) stated in the U.S. House of Representatives:

In 1986 Robert Weissbourd was president and Bernard Lacour was vice president of Pro-Can.

At some point, Greg A. Kinchewski, General Counsel/Vice President, Marco Consulting Group, served as “Co-Chairman of the Progressive Chicago Area Network (PROCAN) for five years.”

Shorebank

Whatever picture you may formed in your head about Weissbourd by now, there’s even more to come. As reported above, Weissbourd is the former Vice-President of Shorebank Corporation and Executive Vice-President of Shorebank Chicago Companies.

ShoreBank boasts on the header for its website “ShoreBank invests in people and their communities to create economic equality and a healthy environment.”

So, let’s compare and contrast:

In January 2005 ShoreBank was held up as a “model for development project.”

Richard Taub, Chairman of Human Development and the Paul Klapper Professor in the Social Sciences and the College, at the University of Chicago said in January 2005:

In an October 2006 Dallas Morning News article, Chicago economic consultant Robert Weissbourd and Dallas scholar Marcus Martin shared “their insights about a powerful new approach to the problems of neglected inner-city neighborhoods.”

The classic example in the finance area is ShoreBank’s lending to real estate entrepreneurs and rehabbers. ShoreBank is a Chicago bank holding company that began by doing housing and venture capital and community development as well as conventional banking in targeted areas on the south side of Chicago.

I spent nearly a decade working there, and we had a special product designed for local people living in low-income neighborhoods who wanted to buy and fix up small buildings. It let them get much higher loan-to-value on the buildings, it was a different structure for underwriting.

In May 2009 ShoreBank was deeply troubled. Steve Daniels wrote May 18 at Crain’s:

How ShoreBank’s leaders — co-founders Ronald Grzywinski and Mary Houghton, chairman and president, respectively, of parent company ShoreBank Corp. — navigate the storm will put their claim that banks can profitably lend in low-income neighborhoods to the stiffest test since the pair took over the old South Shore National Bank 36 years ago. [...]

A bank spokesman won’t say which investors ShoreBank plans to approach or how much it thinks it needs. But based on the bank’s finances, the sum clearly will be in the tens of millions.

ShoreBank, which at $2.7 billion in assets is Chicago’s 13th-largest bank, blames its loan-quality issues on the economy. Real estate values in neighborhoods it serves have dropped 25% to 40%, it says. Bank CEO Joseph Hasten, who joined ShoreBank two years ago, is focusing on working out delinquent loans, boosting core deposits and controlling expenses, [...]

There’s no guessing as to Weissbourd’s involvement with ShoreBank at this time. While employed by ShoreBank, he contributed $9113 to Obama for Illinois from June 30, 2003 to March 24, 2004. Additionally, in March 2005, he contributed to the congressional campaigns of Kent Conrad ($2000), Bill Nelson ($1000), and Robert Byrd ($1000).

In fact, according to his political campaign records, beginning in 1991, Weissbourd was with ShoreBank when he contributed $700 to Bill Clinton’s presidential campaign; in 1995-1997 when he contributed $2,000 to Carol Moseley-Braun for U.S Senate 1998; in 1996 when he contributed $1000 for Danny K. Davis’s congressional campaign; and in 1997, 1998, and 2000 when he contributed to Rep. Jan Schakowski’s congressional campaigns. (You can read about Schakowsky’s connections here, here, and here.)

Weissbourd’s board of directors profile at Sourcelight, a personalization software company, states:

To state the obvious, there is no way Weissbourd can distance himself from ShoreBank’s “bad loans” made to low-income communities in Chicago.

Any questions?

Speaking of ShoreBank

While we’re on the subject of ShoreBank, let’s turn back the RBO clock to April 2008 where we meet Howard Stanback, who was on the board of Shorebank’s Neighborhood Institute and president of the Hyde Park Community Association, which governed the neighborhood where, in 2005, Barack and Michelle Obama bought their faux Georgian mansion and Rita Rezko bought the adjacent empty garden lot.

Oh. Did we mention that Stanback was also board chairman at the Woods Fund in 2000 when Obama’s boss, Allison Davis, and Tony Rezko, Rita’s spouse, came looking for money for their New Kenwood LLC, which Davis and Rezko had formed to build an apartment building for low-income seniors at 48th and Cottage Grove? It seems Obama voted to make the $1 million investment but Stanback abstained.

ShoreBank in Kenya

Would it surprise you to know that in August 2006, when U.S. Senator Obama visited Nairobi, Kenya, news of microfinance, and a $1million investment in Kenya, made by ShoreBank made its way to ABC News in Chicago?

MicroCapital reports: “In November 3, 2008, MicroCapital reported on President Barack Obama’s support of ShoreBank’s loan program to Kenyan microfinance bank K-Rep during his trip to Kenya in 2006.”

Also note that ShoreBank is a part owner in Kenya’s K-Rep Bank.

And, as always, see RBO’s The Obama Socialist / Marxist / Communist Reader for more.

The answer to that question is NO. A transfer of wealth takes place in this country every day and it does not begin in Washington D.C.

The real transfer of wealth in this country begins when a man or woman has a unique idea and, with the entrepreneur spirit that makes America great, creates a business that provides jobs and recirculates money into the economy. This type of wealth transfer (transfer through creation) rewards achievement and hard work. This is the answer to the economic crisis that this country finds itself in.

The real transfer of wealth in this country begins when ordinary, hardworking citizens invest in mutual funds, 401K’s, real estate, and the many investment opportunities that this country provides. Transfer through creation. The engine of capitalism is the single greatest creator of wealth in history.

The re-distribution policies of President Obama result in little more than a Robin Hood economic policy that robs from achievers and gives to underachievers, and the key word here is robs. A real transfer of wealth is when real wealth is produced, and then the fruits of that production is distributed to those who participate in the endeavor. Re-distribution of wealth just moves wealth from people who have achieved and created something to people who have never created anything. It is an insult to everyone who has ever gotten up at 4:00 AM to go to work to earn an income to support their family and never asked the government for its “help”.

The President clearly favors a policy that rewards underachievement and punishes achievement. He is wrong. The only economic policy that will work is to allow the American people to do what they do best; create. The President is setting out to intentionally create an entitlement society because his ideas can not produce on their merits. Anyone with common sense can see that his policies are wrong. The only way he can remain in power is by having the American people dependent on him. As President he has created no jobs, his policies have created no wealth, and the economy is under-performing because his policies have a disruptive effect. It is time for a common sense approach. Get the money out of Washington and back to the people with real tax cuts that reward investment and job creation. In turn, the economy will grow and Washington will benefit from something it has been losing for many month; revenue.

http://commonsenseeconomics3.blogspot.com/

Hello Everyone!

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We also just added two new expert advisors to our testing lineup. These aren’t “new” robots but they are popular and they’re new to us.

Forex Funnel:

http://www.metatrader247.com/ea_funnel.html

Forex Funnel is a martingale strategy (extremely risky, but also lots of potential) that caught our eye. The recent FPA trades seem to be doing well and it definitely intrigued me, so we had to start testing it!

Forex Fantasy:

http://www.metatrader247.com/ea_fantasy.html

Forex Fantasy has been out for awhile and was overdue for testing. The FPA demo has been running for about 3 months and now has a total net 37% gain. This isn’t one to expect weekly miracles from but we’re hoping it’s a good long-term option. I absolutely love the risk-to-reward ratio (100pip stop loss and 250pip take profit).

–**– New Optimism Rank for Forex Maestro –**–

It was at 2 stars because even though the recent results were good, it had dumped a demo account of mine long ago. However, after trading for an entire month, every demo (M5, M15 and M30) is doing extremely well and I had to bump up the rank. I’m starting to wonder if I was simply trading too many lots when it dumped my demo account months ago.

Another few weeks and I’m going to be very tempted to stick it on my live account. I’m not ready yet… but getting close!

–**– Update for Transformer and Poison –**–

I had to lower my optimism level for Forex Transformer from 5 stars to 4. I still see a future for it, and I am still optimistic, but the recent performance is mediocre and my results are not matching the results at Forex Peace Army. I have contacted Forex Transformer and am waiting to hear back for a possible explanation.

Same situation with the Poison Robot. Last time I checked, my results weren’t matching the FPA results very well. Even though the Poison robot isn’t a scalper, there are over 12 indicators involved in researching the market and determining trades, and sometimes signals can get mixed up from one broker to another. I was getting ready to raise my optimism level to 5 stars but I’m going keep it at 4 for now. It unnerves me a little that the results aren’t matching and makes me wonder how performance will be in the future… we will see!

–**– What would Scott run Live? –**–

Even though the website has reviews and real demo testing of all the robots, I still get asked the question “If you had to pick 1 or 2 robots to trade live right now, what would they be?” and that is a GREAT question!

First, let me say that the primary reason we started testing and reviewing was to help our members research their buying decisions (since you’re looking into EA’s anyway, we may as well help!) but offering actual recommendations wasn’t part of the plan.

However…. If I had to pick two robots RIGHT NOW to run live?

1) The M5G Cyborg. It’s a grid-trading EA that only runs 4 days a week, 2.5 hours per day… but what sold me was the long track record.

Our review:

http://www.metatrader247.com/ea_cyborg.html

Live-running account since February 10th:

http://cyborg3.mt4live.com

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3 August 1382 (12 Halane 730)

Minds Eye to an area in the woods on a rock close enough to the druid grove to grok.  Party Link then we jump.

She is definitely connected via the druid grove and it extends at least through the Tethyr forest.

Strahd’s connection supports and keeps human beings alive but hers is eliminating humans via the connection.  The nature of her connection is a little different. In his case, it is a direct connection to him to the land.  In her case, it is the druid grove to the land.

She senses sickness, disease, insects in the nature.  Nature is angry toward humans.  Her anger has become nature’s anger; her intent has become nature’s intent. It definitely escalated after Darius’ request for her aid.

We took the carpet toward Trademeet.  En route, we see a human being attacked by an ankheg.  We kill it and retrieve our arrows.  Tiriel tries to convince the farmer to leave with the Trademeet people and he figures he will still hang around.

We arrive to Trademeet and find that there is only about 150 people leaving.  Tiriel speaks to the crowds trying to get them to leave.  A noble woman requests an audience and tries to convince us to go fight the druid.  Tiriel does a terrible job speaking to her and the woman gets offended and sends her guards after the mayor.  Tiriel and the gang look tough and the guards back down.

We get back to the square and find out that the mayor and guards have run out.  There are animals in battle with the guards.  A giant scorpion, a giant spider and two wolves.  Darius tries to talk to the wolves but they are in battle and don’t pay attention.

We shoot the scorpion and spider and retrieve our arrows.  The mayor is not here.  Darius goes west to search for him and Tiriel goes east.  Darius finds the remnants of a fight.  Tiriel finds the big battle with the mayor and guards fighting a bear, wolves, an ankheg, giant scorpion, spiders.  Tiriel and Bob join this fray and then follow the mayor and his guard around to the various gates to battle the various critters.

Darius causes fear in the wolves she finds at the west gate and then proceeds around to the various gates and heals the two seriously wounded guards in the name of milamber.  When everyone is back together, Darius takes the opportunity to express her grief in Sindarin over that evil druid bitch sacrificing the innocent animals for her cause against any reasonable judgement.

We cannot convince the mayor to come with us because his duty is there to the town.

At noon, 250 people go through Balm’s gate.  Balm says things are weird so he doesn’t want to leave the sphere.

In Suzail, Captain Jonathan reminds us that we should give them some money to help them get started.  We don’t have any handy so we have them show up at the church.  Tiriel makes a pound of gold worth $5K.  We give each person 20 gp and keep the rest for the church.  Once that is settled, Darius calls Balm to check on him.  He says he is watching some weird stuff and if they are not busy, he wouldn’t mind having them there with him.

We head to Chaos and Darius begins scrying using Violet Eye and Wisdom of Usela.  She determines that an attack on the Fortress of Chaos is imminent, i.e. today, three attacks to be precise though she only gets info on two.  Tzang is the leader of the first attack with 12,000 troops and they are currently 50 miles out.  The second wave is 200 and is 55 miles out.  The most dangerous is the 23 demons.  There are chaos knights.  Their goal is to overwhelm and destroy.  Her information is that Mabelode is the force behind it.  One of us remembers that he is one of the three Lords of Chaos, as referenced in the book that we used to research Black Razor about the Stormbringer stories.

Duke Tyr runs with the Chaos effect.

Balm pops Ahz to us at the sphere and then out toward the perimeter where the troops seem to be coming.  He sees the horde of the first attack and the 200 big demons led by a demon named Quarl and the third attack which is pure gellified chaos that sweeps up anything in its path and tends to transform it unnaturally.

We decide to get the sphere out and not fight this fight.  It is a fight that we cannot win and Milamber didn’t stay for it either.  We recall that after Darius got catapulted into the future 6 years and Milamber wasn’t there to send her back or wasn’t answering, it was understood that Milamber of present day would have to go get her.  Also, he knew something big was happening but didn’t know what.  We think it might be Mabelode, ancient inhuman god of chaos showing up.

Darius makes a new Valgar out of the body bits he gave us.  It is agreed that Soro will fly the sphere home.  We teleport to the tower and speak with GAris.

Milamber had said to keep the church strong so we decide to give some parties.  It is decided that we will mix things up a bit to stir some interest in the church.  Garis is going to Waterdeep to head the new church there. Darius will take over at Baldurs Gate. Balm will go to Suzail and Tiriel will handle Nesme.  Darius will still run interference with Maxor and King Ironfist.

August 4, 1382 (13 Halane 730)

We throw the Baldurs Gate party which is a huge success.  We begin prep for Waterdeep’s party and Suzail’s party.  Masked lord aids in clearing out problem inhabitants in our land.  In between, Darius and Tiriel work on spells in the time warp.  Darius is working on an Instill Skill spell to help Pauden beef up for the potential fight with the druid.  Tiriel learns Extend.

Ahz has been keeping an eye out for us on the goings on at the Fortress of Chaos.  The horde et all has finally marched on the Fortress of Chaos but can’t get in.  As the chaos goo hits some of the slaadi, they mutate to more demonic looking beings.

At some point, Mabelode shows up and enters the fortress.  It sinks into the goo and a black fortress takes its place.

August 5, 1382 (14 Halane 730)

Various discussions lead to 6 reluctant priest volunteers and 8 volunteers from Baldurs Gate for Waterdeep.

Tiriel talks to the masons about construction at Waterdeep.  An asshole living in the lands granted to Tiriel and the church of Milamber convinces the others to stay so Tiriel has to work on clearing the area.  She goes to guards for help and a bribe later gets one captain to help.  We provide 300 gp to simplify things.

Darius learns the spell Instill Skill by 4:30 and is still able to make the party.  She does the secret service grok of the area for danger and neighbors.  Wave detects a couple dozen people underground beneath our area. Her grok indicates that they are thieves and all living humanoids of some kind.  Balm talks to the thieves guild about staying out of the party and our hair.

Garis has hired criers, Tiriel caterers.  At the party, we give out holy water and food and drink.  The party is a great success.

We fix up a building for our clerics to stay in for 50 gp.

Spent 1000 gp on party and furniture.  Tiriel also spends 5 gp per day protectors for our clerics.

August 6, 1382 (15 Halane 730)

We plan a party for Suzail since Baldurs Gate and Waterdeep went so well.  Darius starts the plans.  She invites the King and Maxor, gets cateres, criers.

Tiriel and Bob head to Nesme, then on to visit the Prince of Melderyn.  They then go to visit Drizzt and Cattiebrie in the forest.  Cattiebrie expresses a strong wish to see her father, Bruenor.  Tiriel goes to visit her mom and dad and makes arrangements for Bruenor, Cattiebrie and Drizzt to visit at her mom’s house in Melderyn.

Darius practices her spell by instilling skill of Milamber worship.  One she crictically succeeds on and he is much enlightened, as much about her as he is about Milamber.

August 7, 1382 (16 Halane 730)

For our Suzail party, a rival church – specifically that jerk cleric of Luck – is sending out counter messages and trying to undermine our party.  Darius and Balm counter with more criers and giving money to new immigrants from Trademeet.

The party was good but not great like in Baldurs Gate and Waterdeep.  The city and country are in too much blight.  The king shows up for the party.  Tiriel hides away from him since they have never been on very good terms.

It is agreed that the Level 5 priest of Suzail will switch places with the Level 4 priest of Nesme to get new blood and give the Nesme guy a change of scenery.

August 8, 1382 (17 Halane 730)

Tiriel interviews with the masked lords of Waterdeep to become the new open lord.  One set in the morning and one set in the afternoon.  They discuss security issues and there is a private vote.

Darius visits Pauden to discuss the Hierophant’s request for him to come to him with the implication being that he must challenge Faldorn to ritual combat.  She has Pauden discuss the nature of the ritual, how it will be done, who does what.  It is agreed that we will boost his skills in the tower.

Tiriel boosts his Endurance and Strength by 3 each.  Darius over the next two days boosts his aura and will by 2 each.

Ahz checks in and says that a Black fortress made of chaos goo has sprung up over the sunken Milamber’s fortress of chaos.

August 9, 1382 (18 Halane 730)

Tiriel heads to Nesme; No news so onto Waterdeep where she is announced as the new Open Lord of Waterdeep.  The ceremony is scheduled for the next day.

Garis and Tiriel further the plans for the church.

Tiriel boosts Pauden’s dex by 1 point.

August 10, 1382 (19 Halane 730)

Pomp and Circumstance.  Tiriel is sworn in as new open lord of Waterdeep.  Goes very well. Tiriel brings in Mom and Dad for the ceremony.  Laereal and Khelben there together.  Maxor goes after Darius runs interference.

That night at the Tower of Chaos at Baldurs Gate, Tiriel visits with parents and it is agreed that they will be the neutral place for Drizzt, Cattiebrie and Bruenor to visit. Mom insists on sprucing up the place a bit.  Tiriel gives her 1200 in gems to do so.

August 11, 1382 (20 Halane 730)

Balm wants a new bag of holding because his was attached to Milamber’s realm and now the other end, the room in the fortress, is surrounded by pure chaos.  For now Balm has buried the bag out in a field.  Darius goes looking for one.  At the Adventurer’s shop she finds herself a Hevards Haversack – a bag of holding back pack.  The shop owner had a guy there that day trying to sell the bag of holding but it was too expensive for him to turn a profit.  He gives Darius the name and she passes it along to Balm.  While Balm is negotiating, Garis shows up in the tower, looking disturbed and calling for an emergency meeting.  Balm pays the 50K gp and runs along to the meeting.

Garis was invited by Mabelrode to the new Fortress of Chaos and Mabelrode introduced himself as Milamber.  He has a new line of instruction and he is not expecting Tiriel, Darius or Balm to go with it.  He says that the dukes of Baldurs Gate will worship Chaos or they are out.  We discuss options.  Can we take pool to keep building for the real Milamber.  Using the books we can grant the only two priests about 5^th level spells so that the priests won’t notice the difference.  Drum up story that there is a false god claiming to be Milamber.  We call Ahz to us to consult.  Mabelrode wants Garis to move the teachings of the church to the mainstream Chaos of yore.  Do we call Faux to help?

We agree to keep worship pool directed away from Mabelrode using the books.

August 12, 1382 (21 Halane 730)

Soro shows up with the sphere.  Darius and Tiriel each take a finger in case Balm loses his key.

August 13, 1382 (22 Halane 730)

Mabelrode snatches Tiriel and Darius during their perspective destinations.  It is particularly impressive because these teleports were generated by their own power.  He is clear that they had better start towing the Mabelrode line or else.  Tiriel is pretty frisky but manages not to get zapped.  Darius is clear that she serves personal freedom and life and does usually dispatch demons since they are evil. Mabelrode indicates that they should continue to teach as they always have.

The four high priests – Balm, Garis, Tiriel and Darius – meet to discuss the conversation.  They agree that Milamber had told them to keep the church strong.

Darius warns Elminster that he should be aware of some changes a brewing.  He says okay.  It is noted that he didn’t pursue more information so he either knew it already, figured by Darius’ tone that she wouldn’t say anything more, or figured she couldn’t.

August 14, 1382 (23 Halane 730)

Tiriel pops up to Waterdeep to meet w Khelben and the Masked Lords (see email 4/5/09 on the history of the Masked Lords).  They are starting to review the process of identifying the masked lords and then she will be working on learning the workings of the city.

Meanwhile, Darius and Soro take Pauden to the outskirts of the Unicorn Run.  They hike in to the hierophant. The hierophant is cordial and appreciates that we didn’t’ interfere with the druids. He appreciates our forebearance.  He expresses that he and Pauden will handle it from here.  Pauden requests some Planar Contact sticks and Darius reminds him to call Soro.  They spend the rest of the day being elves in the woods.

That night Soro wakes her to a noise.  Darius can determine that it sounds like horses about a mile away.  By the time they get there, they have left.  She wonders if they are unicorns.  After several hours of tracking, she and Soro get within 100 feet of six Unicorns.

Tiriel gets Bruenor and takes him to Melderyn and then she retrieves Drizzt and Cattiebrie.

August 15, 1382 (24 Halane 730)

Darius checks in with Baldurs Gate and Suzail and is not needed so she and Soro stay in the forest another day but that night heads back to the tower.

Tiriel continues her getting acquaintance process w Waterdeep.  She also checks in with Nesme.  A deformed, eyeless woman comes to the church to speak with the new head of the church there since she is a woman.  She wants to sweep at the church and just hang out.

Balm sends Randolph back, the 4^th level priest who has been here all along.  He asks why the retard is here and Tiriel tells him she gave her permission to sweep.

Tiriel deals with the Mages and Protectors regarding the contract.

That night back at the tower, it is agreed that tomorrow they will go on a vampire hunt.

August 16, 1382 (25 Halane 730)

SOP – check on Pauden and check on Milamber

Pauden says he is ready to go after the Druid whenever she’s ready to pick him up.  She tells him that not today because we are going after vampires so either tomorrow or the next day.

We pop to Waterdeep and check in with the church.  Darius’ scrying indicates that the vampires think it was the Open Lord of Waterdeep that attacked them. They are planning an attack to overwhelm and destroy in Waterdeep.  Though Darius doesn’t get a critical we wouldn’t doubt this since we know that they are building a vampire army.

After much discussion, we decide to pop into the sub level 1 area that we have already been to.  There are three gates off this level.  We pop in, all with some kind of invisibility.  There is a human with a torch whose mind is blank just wandering around.  Some minor undead and one major undead 30 feet below.  We agree to go through one gate and find that there are some minor undead.  Second gate has one minor undead.  Third gate has a human guard, one major undead 60 feet above and some minor undead.  Tiriel’s sleep attack on the human fails to take him down and he calls an alarm.

Wave senses that several undead are heading toward us.  Darius tries the Sunburst.  All the minor undead are gone but the 60 foot guy is unaffected.  Darius groks the major undead is Drak Blackraven.  It turns out that 5 foot of stone will stop the Sunburst.  We agree that going sunny side and pull him to us rather than lose him again.  We find a secluded sunny spot and go to pull him to us.  Darius puts Soul Boost on everyone.

Tiriel goes to pull him and he doesn’t come.  We go back through the gates and Darius goes through the gate first and gets hit with a delayed blast fireball.  She keeps Pro from Fire up and so it absorbs the damage.  She uses sensitivity to note that there is another big spell effect.  She marks the area so the mage group to follow us up will not walk into the trap.

We agree that we will hit another gate this morning.  We find another vampire.  Darius groks her to find out that she is only about 20 years into being a vampire and her maker is gone.  We briefly discuss Drak being hundreds of years old and being an archmage and that this vampire army started only about a month ago.

The three humans we pick up serve the female vampire from this last vampire.

The other four humans serve Drak, one of them high in his counsel.  This guy actually enjoys serving Drak.  Aura Reading & Psychometry don’t work as well since he wasn’t traumatized by his work.  Darius’ Usela’s Perception indicates that he is interested about how much he can get.  Darius points out that they could just kill him and use Speak with the Dead.  Usela’s P indicates that that actually scares him.  We continue to discuss things with him back and forth.  The head vampires are Drak and Luvagore.  There are no big new vampires on the block.  There have been changes on how the vampires have acted.

When asked if Myrkul contacted them, he wants to be deceitful but can’t figure out how to do it so he is honest per Usela’s and that he was not aware of any specific contacts. We know that he is lying and Tiriel fails her intimidation.  Darius switches to the original scary thing and scares him into telling them that Drak keep in contact with his family from time to time, though they are not allied, they do interact.  He acknowledges that the other vampires do as well.

He figures out that we seem to be able read his mind.  We get some good information. What he does, where a lot of the gates, that the open lord is against them, who the other vampires of significance are.  They have new info on the lich.  Because of our involvement, the vampires have talked with the lich.  The lich wanted to talk to them about keeping a lower profile.  The vampires have become very concerned about the Open Lord and the city uniting against them so they are not as excited about swamping the town any more.

We agree that Tiriel will Torval’s Rest the servant and Darius will take the other 6 men to Baldurs Gate to heal them if possible.  We also decide that we will aid Pauden tomorrow morning.

Tiriel meets with the masked lord on the possibility of a truce with the vampires.  They think that the Myrkul-created undead should be removed.  Her intrigue indicates that they don’t trust her to deal with the vampire because as a priest of Milamber.  They think that she may be too lenient on the vampires.  She suggests that they should also make overtures to the lich.  They then change their tune and suggest that she should handle both problems.

During her conversation with Khelben, he suggests that she as Open Lord could invite the lich to the castle.  None before her have been capable of facing him.  She may or may not be able to handle it.  They discuss the various issues.

Tiriel goes on to discuss the contract with the Mages and Protectors and speak to families of known vampires.  She starts with the Blackravens.  Next one wants their portal secured.

She can’t get the best sage to research the lich in the graveyard.

Bob takes her out in a parallel Cormyr that still lives in peace.  Tiriel even takes off her armor and takes a bath.  They have a wonderful dinner but agree to go back to the tower for the night. Bob tells her that he will have a gift for her in a few days.  Then he sneaks off to a room in the tower and Tiriel senses him doing some kind of very large magical energy.  She gets concerned and asks Darius to check.  She didn’t sense it, strangely enough.

August 17, 1382 (26 Halane 730)

Balm, Darius, Tiriel, Soro and Bob go pick up Pauden and go to the druid grove to the challenge arena.  It is evident that the forest has become evil.  Everyone is a little put out because of the broach of protocol but eventually the challenge master is summoned.  Pauden, Balm, Tiriel and Darius all give speeches on the matter.  Everyone does well but Darius.

Finally, feathers are smoothed enough for combat to begin.  It is a tough fight but in the end Pauden wins.  Faldorn goes down unconscious.  Tiriel wants to grock the grove but Pauden asks her to wait.  She assesses the best way to handle it and gives Pauden her blessing as the demi-goddess of nature.  Darius follows suit and gives him her blessing as the demi-power protector of life energy.  They both succeed this time and things seem to be okay.  Unfortunately, Faldorn will fall back to an arch druid since she lived.

We go to Trademeet to speak to them about setting up diplomatic relations with the druids.  We are waiting for the townspeople to gather when Soro receives a distress call from Maxor.  Darius calls him back. He says that the king ordered Balm arrested and they have and that she should come asap.

Darius tries to Planar Contact and Minds Eye but both are blocked at a god level, even a critical success doesn’t pop through.  After updating Garis, Faux, Baldurs Gate people of these circumstances, then we start discussing the problem.  We go to the Tower to be stronger.

Darius contacts the church and can’t find the head priest.  It is blocked too. She Minds Eye’s the church and sees a low level priest who shows her the battle.  Darius looks through the memories of the low level priest earlier and saw the battle.  The Helmian priests and several guards waited in the church for Balm then tried to arrest him when he popped in. He fought with Black Razor and his other weapons and people died.  They hit him with some spell and he went unconscious.  This rendition is per the memories that Darius viewed from one of their priests.  Both Faux and Garis had said that the spell they used to take him down was Command.  Balm’s use of Black Razor pretty much eliminates him ever not being charged with death by Helm.  The high priest was grabbed as well but didn’t resist arrest.

Darius calls the next highest priest at Suzail who tells her again what happened and how things are now.  He inquires whether or not they shouldn’t get out since there are some in the church that could go against Balm’s case if searched or seized.  Darius and Tiriel agree that they should get the hell out of dodge but not be obvious about it.  He said that he and Balm had contingencies for just this sort of thing.

It is agreed that Bob and Tiriel will both try to pull Balm to us at the same time with extra power.  Luckily they threw a bunch of points each and were able to pull Balm to the Tower.  Balm is relieved.  He is able to discern that the naveh priest that poses as a Milamber priest in Harn is somehow involved.

Darius out of her personal friendship with Maxor feels that she needs to speak to him since she isn’t going there.  It is agreed that she needs to be able to be honest with her friend so Balm alters her memories so she doesn’t know he is free.

When she speaks to Maxor he informs her that Balm has broken free.  She is genuinely pleased to hear it, she says she was surprised that they had even captured him so she isn’t surprised that he could get free.  Maxor isn’t exactly thrilled with this.  She asks him what happened because everything has been going so well. He says he genuinely doesn’t know and he doesn’t recommend that she come to Suzail until he speaks with the king.  The king ordered him arrested along with this guy walking into town (the Naveh priest) and the king doesn’t need a reason.

Darius offers to bring back the dead, if it will help the cause.  Maxor says that there is reason to believe that they were soul-sucked.  Darius says that even if they were, she can bring them back and that is assuming that they were soul-sucked.

Darius rah-rah’s the Baldurs Gate group with some success while Balm who is down to 60, Bob who is down to about 50 and Tiriel who is down to 21 go into the time warp to regain strength.

In less than an hour, Maxor is able to tell Darius that Helm ordered Balm arrested via the high priest of Helm; he was told to bring as many as they could.  They were also told to arrest this guy coming in the gates at that time. He had assassin types of stuff on him, including a sticky stuff that they think is poison.  He isn’t talking.

Darius consults with Maxor about hiring a litigant to represent the high priest since he isn’t being charged with anything.  Maxor says it is a good idea and gives her a few recommendations.

Darius calls the next highest priest (3^rd in the Suzail chain).  He says that almost everyone is gone and taken much of the money with them but he has enough to secure a litigant for the high priest.  Darius discourses with the litigant who seems much better disposed to help once he learns that she isn’t planning on hiring him to protect Balm.

Darius calls Trademeet and speaks with the mayor.  He said that he was able to give the speech about the druids and that we have been awarded special awards from the city as Defenders.

Darius calls Pauden to check up on him.  He tells her that Faldorn has decided to become a hierophant rather than stay with the grove.  Darius tells him about laying the foundation for diplomatic relations with Trademeet and them being more environmentally friendly.  She also says that Cormyr still needs druids.

We wake up to our clerics telling us that the rumor mill is that the dukes are giving the church back to the Helmians.  We decide to confront the duke because he asked for it back because we weren’t going to be building a temple any time soon.  We gave it back with the stipulation that it couldn’t be used by Helm or his church.  He agrees that there will be a clause in the deed stating that and it was intended to go to secular use.

Before confronting the duke, Darius spoke w Pauden to clarify that Faldorn’s decision to become a hierophant wouldn’t mean that she would challenge the existing hierophant in combat to the death to achieve her ends.  Pauden said that it doesn’t involve anything like that.  She is a free-roaming druid at that point.  Darius adds checking on Faldorn periodically as part of her normal routine.

She checks in with the litigant who says that the Helmians are questioning the stranger and under their spells he is spilling his guts, indicating that Balm had inspired him to go hunt for a third party assassin.  The litigant indicates that our priest will be questioned a little later so she says she will call him later.

Darius gets worried that the Milamber book is in enemy hands.  She punches through with a double-powered Minds Eye to see where it is.  Around the Book is most of his stuff.  Darius and Bob combine to pull all his stuff there.

When speaking to the litigant she gets the scuttlebutt.  A horde of chaotic neutral demons attacked a holy shrine in Arabel of Helm but the priests held them off.  The stranger indicated that he used Tiriel’s instructions to come over from another world and the authorities will probably want to speak with her.

Darius is informed that clerics threw stones and roughed up some Helmites.  She lectures them on their behavior and why it is important to be the good guys to win over towns folk.  These people are not Helm the pain in the butt god.

August 18, 1382 (27 Halane 730)

Maxor calls Darius via Soro.  Maxor tells Darius that Arabel has been attacked again, this time the priest has been slain.  The demons were slaadi and came back in bigger numbers.  He asks if the church of Milamber is involved.  She said that her church of Milamber is not involved, this she knows.  When she asks, he does indicate that she should probably not come to Suzail for fear that she will share Balm’s fate.  She offers to go to Arabel to resurrect the priest.  He indicates that she may be arrested there as well.  She hints that there is another power of Chaos out there.

We discuss whether or not to bring a 3^rd party into our problems with Mabelrode.  Darius and Tiriel think that we should at least spread the concept of a different force of Chaos so Milamber doesn’t get blamed.  Also, the chosen of Mystra may have a better idea of what is going on.  It is agreed that Tiriel will speak to Khelben about it in relation to their being a new power of chaos in play right now.

Tiriel pops to Waterdeep and speaks w Khelben.  She says that she wants to speak to problems with the Helmian church and her being the Open Lord of Waterdeep.  He says he wants to speak to her about this as well.  She explains that the Helm church in Suzail arrested Balm and some stranger who turned out to be an assassin from her home world.  He said under truth spells that Balm told him to come to assassinate the assassin of the king.  He had her book of travelling the planes and used it to get here.

Khelben seems to let go of his concern that she is lying or implicated.  Once they get passed that part. He says he doesn’t want the city of Waterdeep to have to go to war if their Open Lord was arrested by a foreign power.

She goes on to say that there is another player in the realm of Chaos.  He comments that Elminster had said something so that he would pursue it with him and doesn’t press her for more info.  Of course, secretly, Darius at least is hoping that they can find out more information than she can.

Bob and Tiriel then go to the church of Milamber.  Bob grabs his sword after sensing danger.  A green slaadi pops in and asks for an audience with Lady Tiriel.  The slaadi says that he is a messenger from Mabelode.  There has been an event going on with Helm arresting our priest.  Mabelrode is concerned that we are not acting as his priests.  Tiriel groks the slaadi and determine that he is a slaadi and is volunteering to serve the new power of chaos w/o being adoring.  The slaadi got the impression that Mabelrode sent a messenger because he seems to know that we don’t like meeting with him alone.

Meanwhile, Darius calls the high priestess of the elven god that we are friends with and asks for a bit of her time.  She travels to speak with her and pick her brain on the elven perception of Chaos and Law.  She had already called her a few weeks ago regarding this issue and there was no specific prophecy or story about it but now with real problems coming on, she wants to speak to her again.  Plus we need to restore our supply of elven wine.

The elves pretty much deem Mabelrode as a human problem.  Then a red slaadi poses as a big deer.  He says that he is a messenger from Mabelrode who is concerned that we don’t have his back with Helm.  Darius says she is glad of the opportunity and says her piece about building the worshipper base with an understanding of the worshippers themselves.  Bullying or unprovoked attacks could actually work against building a worship pool. At first he doesn’t seem to understand and suggests that he take her to Mabelrode. She declines and re-explains.  This time he gets it enough.

About a half hour another slaadi to speak to Balm.

Later, after playing with the elves for a while, she goes back to work.  She and Soro pop to Waterdeep and the gang goes to the house to destroy the gate.  We experiment with it to find out how it works on the permanent gate.  A touch from the Sunsword takes down 1/20^th of the gate; a slash takes down 1/10^th of the gate. Each touch or hit stops the gates briefly and then it comes back weaker each time.

Darius speaks with the litigant who says it would be easier to represent them if they were present.  Darius says that that can’t be helped.  Balm hires a litigant to represent the assassin so they don’t just outright kill him.  He was hired to stop an assassin.

That night we meet at the tower to discuss the Mabelrode issue.  We all basically agreed with the messengers.  Darius and Balm have an idea but Tiriel doesn’t agree.  He may be changing his message to keep the priests in line.  Tiriel (who failed her roll) thinks that he is just being a chaotic butthole.

Darius uses Violet Eye to see who the best surface contact for the lich is.  The answer is the sage with the extraplanar beings in his basement. Tiriel decides to invite the sage to come to see her.  She sends word ahead that she wants to meet him tomorrow at one.

Darius groks Baldurs Gate to get an idea of the dukes and some general information about it, including that there is a substantial thieves guild here.

Bob presents his surprise to Tiriel this night – the phenomenal bath tub.  It is obviously done with god magic and has relaxing elements, running water and protection.  After her bath she is feeling pretty randy.

Darius and Balm discuss covering her Purple Dragon stuff with her own symbol.  She decides to speak with some artists.  One of her worshippers says that he and one of the Milamber worshippers were already discussing a symbol for her.

August 19, 1382 (28 Halane 730)

Darius and Soro take her one worshipper to Waterdeep.  Upon the tour of the city, she passes by the Plinth and greets the Pelor priest.  The Pelor priest begins asking her about the Sunsword because he had started thinking about it after he met her last time.  They discuss it and that it is a holy artifact of Pelor. Darius explains the evil world where it was and that she fixed it and that Pelor is aware that she has it but it is a secret that she currently holds it.

Her priest says that the Trident isn’t what she is really about; she is about protecting.  The Milamber priest who is an artist is one of the Garis’ chaos priests.  But he points out that Milamber is also about protecting, protecting personal freedom.

The meeting with the sage goes very well. He is quite happy when Tiriel says that she would like a meeting with the lich to discuss a working truce.

Tiriel and Darius discuss more of the Mabelrode problem.

Balm relates that the litigant he hired is doing a good job because if the assassin was going after the criminal who was going to kill the king.

Grok indicates that a Helmite spying on the situation.  He has discovered that Tiriel has plans to meet the lich.  He doesn’t have enough time to set up a trap but figures he will hang out so he can find out what is going on.  Tiriel decides to grab him but he tries to teleport away.  She is able to overcome his teleport and pulls him toward her.  He is a high level Helm priest.  She turns him over to the guards.

We meet the lich at the appointed hour and place. He says he observed her handling of the situation and thought she handled it well.  They exchange pleasantries.  He is the arch mage, Dhakadrassa.  He has long wanted such a meeting.  He refers to the vampires and the ill-fated meeting.  She references his many years and his stabilizing influence.  He references the times of Myrkul and evil Khelben.  He references the Sunsword to take out gatherings of Shadow Wraiths.

Tiriel says she doesn’t want us to question or aura read the Helmian who tried to kidnap her.  Back at the Tower, Darius does her own research

VE – the high priest at the temple of Suzail ordered the Helmian to go after Tiriel

VE – his home church is Suzail

VE – they don’t want her just for questioning and I am sure of it.

WU – Their goal is anything they can get

VE – Most specific charge – no answer

WU – What is she charged with – None

God WU – the high priest wants to find out information

August 20, 1382 (29 Halane 730)

Darius calls Maxor about the information she has and he doesn’t know anything about it. She suggests that they send an emissary to ask questions rather than try to kidnap her.  It is bad politically. He says he needs to go ask about it and they agree to get back together on it later in the day.

Meanwhile, Darius goes looking for an artist and Tiriel goes to work.  The judges and Lords decide to hold the trial for the Helmian at noon.  Darius is requested since she has information she researched.  After being questioned, he refuses to answer anything that might incriminate him.  He accepts his sentence of death without questions.  Darius is very concerned about the harshness of the punishment and expresses such to Tiriel via telepathy in Sindarin. Tiriel then asks the judges about it and they feel that they should send a strong message.  Darius calls Maxor to alert him.  She has to use punch through the castle protections to reach him. He requests that they hold off until he has time to investigate.  She passes this on to Tiriel who requests a day reprieve which is granted.

Tiriel groks indicates that he is just a Helmian priest here to be a Helmian priest, not sent by the church. He lucked upon the meeting with the lich and wanted to turn it into an advantage of the Helmian church.  He inquired down south for help but they didn’t have time.  He wasn’t sent here but he was planning on kidnapping Tiriel and the response wasn’t that it was illegal; it was that they didn’t have time to help.  It was the high priest that he communicated with.

Darius calls Maxor to let him know above.  She then pops back to the tower for the high powered time warp and by 10 pm she has learned Silver Tongue (Tongue of Bykwon) critically success.

August 21, 1382 (30 Halane 730)

Darius takes the day off to enjoy being Darius and hanging out in the grove and visiting locals and helping the local farmers.  Tiriel does research in the morning before heading up to Waterdeep to work.

Darius talks to Maxor who says that he will speak to the church but doesn’t indicate to stop the execution.  The general crowd feeling toward the hanging is what the heck was the Helmians thinking by trying to kidnap their open lord.

Later that day, Maxor calls Bob to try to contact Tiriel directly to set up an appointment to ask her questions.  He gives her assurances that no attack would be made.  She said she will discuss it with the lords.

We call Ulraunt to follow up on Pelor and Darius discusses the problems at hand with the vampire, Strahd.  She then calls the elven forest but finds out that our friend, the high priest of elven gods, is dead.  She has been killed by Drow attack.  She and about 100 others.  She offers to do some re-con and they warn her that there is still a strong Drow presence.

Her friends are the ones who got hit, the very night after she had left.  She calls Tiriel and Bob to go on re-con.  She uses VE to determine that the Drow are planning another attack tonight and she is certain of it.  We teleport to the party site.  We find a dead friend hold up in a cubby hole.  We pick her and take her with us.  We stealth up over the hill and a mile down the valley is a large area of darkness.

We do find some tracks of one of the raiding parties but that is about it.  Rather than take any further risk we decide to pop into the forest and do some scrying.  We speak to the elf from the funeral who gives us coordinates to find one of the elven leaders, Lt Tomwin.  We pop into that area and coordinate with the leaders. Tiriel offers to grok in the mind link.  Darius does some scrying first.  She determines that they won’t be using any other vents, mainly the big crack in the valley.  There are 350 combatants, with 80 mages, highest level 12^th and 20 clerics of Shar, highest level 14^th.  We prepare to teleport to the burnt spot.

Darius’ Notes:

Call Drizzt for advice.  Get extra copies of our Milamber treatise.  These chaotic elves are in need of alternative god to think about.

VE/WU — most dangerous attack by high priest and strongest mage

VE/WU — what is the goal of these attacks?  Are they just kiling for fun?  Do they want to establish a base here?  Do the elves have something that these beings want?

Balm — How probably is it that the Sun Sword will shine through their magical darkness?

We know that they throw fireballs (all to well) — fire protection — clerical for Tiriel and Darius, Tiriel’s Ice Armor, and Darius’ Pro from Fire

We know that they use poison — clerical slow poison (2nd) and neutralize poison (4th).  Albruin can neutralize poison.

How do we defend ag. command spells?

What about mass heals?

The elven force: 250 elves, with 40 spell casters

We teleport w Lt Tomwin to the burnt spot. Darius puts soul protection on Tomwin and Tiriel then party link. This is an elven forest but not a lot of underdark. The crevasse has widened recently under natural forces.  No drow scout surface.  There is surface elf child hidden and afraid to come out nearby though.  There is combined effect.  It is smoke and enchantment that is keeping it in the area in darkness.  A multi-hour effect that has to be maintained.  Beneath the smoke there are a number passages some of which have been widend.  There is a maze of passage ways overcomplex so designed that way with arrow slits in various places.  A big trap. No other vents.  A force near the entrance and staggered down through the complex.

We rescue the child and return to the army.  We agree that Darius will try to use earthquake to shut off the vent but the army will begin to marching anyway.

Meanwhile, Tiriel takes charge of the child. She tells her story how she was running around when the drow attack came.  She hid immediately and didn’t see much of the attack. When Tiriel approached her, she turned out her warm and fuzzy nature goddess-ness which makes the girl feel safe.  She groks the girl.  Father Orihork Starseeker, Mother Dauridella Starseeker and the child is Tamzethiana.  Tiriel asks Darius to find her folks. Darius determines that they are alive and well. She calls them to let them know that Tamsethiana is safe with us at Baldurs Gate and that they are expecting an attack in the forest again tonight and that they should be prepared.  The kid will stay with us.  Tiriel introduces the elf child to the Bath.

Darius goes into the time warp to regain her points and prepare for the potential battle.

At about 8 pm, we check in with the army and then teleport to the burnt spot.  Tiriel has learned Earthquake too.

We stealth up to the 360 foot length.  We put up a wall of force to keep any spells or missiles coming.  Tiriel and Darius start their spells and both succeed 10 minutes later with a big kabloom.  The passage collapses and 20 drow warriors die and 15 survive above ground.  Tiriel groks and discovers that they knew we were here but as a whole but isn’t sure what they knew.  She finds the high level cleric. They are currently not aware of the attack in the back.

We stealth away as the drow on the surface start heading out to the wall of force.  One group figures it out where we are sort of so we teleport to the other side.  There, Tiriel finishes her grok and by now they know that they were attacked. The head cleric has said that there is a high level cleric on the surface casting Earthquake and to get them.  They are digging out and will be out soon.

It is agreed that Darius will cast another earth quake while the group starts working on s

You see our full society is predicated on the significance of being right. Your oldsters rewarded you when you are right and told you off when you were “wrong”. They most likely still do this now you are grown up.

Isn’t that what tests teach you? And this is braced thru the remainder of your life. Don’t Beat Yourself Up or the Market Will join In. In reality, that was the toughest thing to do was to persuade someone that these MLM’s worked.

While Currencies are traded all around the globe ( like with Foreign exchange ), there are both US-based and offshore trading homes that need your flow of greenbacks to help their business operations.

This is where you,”The Merchant” comes in. By making funds briefly avaliable to the World Exchange Network creates float. The company we’re employed with is able to take out a loan against this buck amount and the commissions come back to us. The funds you lend to the network are typically returned in a twenty-four to 36 hour time period. When the funds come into your account you make another $1. There are more methods to cycle this cash back thru the system and reinvest profits to your bottom line. In the exchange you cannot afford to keep hold of the have to be “right”. In truth, you may be right only half of the time and still make lots of cash. But this implies you have got to be inaccurate a lot. If you are like me, a little voice within asserts something similar to “but this wasn’t intended to occur. I know I am right – it’s merely a short lived set back ; it will come right, I can just wait it out.
Click the link for more stories on private label right articles

Hello lovelies! It is my last weekend here in Belgium, and I am so excited to go back to the States! I’m so glad I did an exchange year in Belgium, but it’s time to go home, ya know? I of course have missed my family and friends this year, but not in a need to see them right now way. Sometimes this year I did cry, but it was more in a ahhh having a hard time, feeling out of place way and consequently I felt homesick, but I wasn’t really crying for my family. But the other day I thought about my mom and I started to cry thinking about her, even though I’ll be seeing her in only a few days! The closer I get to my arival date the more anxious I get to see my family, which I guess explains the tears. Phew. Emotions are complicated.

This bowl included medjool dates, chopped cashews, the most delicious cherries ever, and diced banana. And thanks for the bowl compliment Janetha! Host mama MC doesn’t have a lot of dingingware options, but you’ll see new bowls when I’m finally chez moi, and hopefully pimped out ones when i go to Anthro and Target!

I had a few more errands to run including, unfortunately, another trip to town hall because they forgot to give me some papers, which ended up costing a few euros. But I ain’t complaining, at least I don’t have to go to Atlanta! (though I would love to go one day, but not after flying from Europe after staying there for a year and I just want to go home and not wait at some consulate for papers for customs). Then I got some shoes repaired and dropped off some German books at school. I know, you’re all thrilled right now. But I did see these beauties during my travels:

I’m not a big fan of hydrangeas, but I just loved the rainbow of color here. Literally this house’s entire front yard is hydrangea haven.

I lunched on a huge jass salad and baguette:

I have to say, you can’t usually find carrots like that in your average American grocery store.

My salad included my new favorite dressing: creamy herb blended with 1/4 of an avocado:

My salad included shredded carrots, chopped tomatoes, chopped red pepper, cucumber, spinach, and the dreamy dressing. I topped my multi grain baguette with raw goat cheese.

Look ma! I ate almost all raw without meaning to!

Shopping tires a girl out, so I snacked on the fruit I packed:

A couple of beers gets me kind of tipsy already, I can only imagine the damage those would do!

We met up with another friend and they had Thai food while I kept them company. I had my own dinner plans, because a friend of my family’s works for NATO in Brussels and, as I’m interested in international affairs and political science and all that jazz, we meet up for day trips and dinners. He has lived one CRAZY life. He worked in the foreign service and basically lived and travelled everywhere, including Kenya, South Africa, Haiti, Kazakstan, Kosovo, Bosnia, Croatia, and so many other countries. I always hear new stories when we meet up. I didn’t photograph dinner but it was Moroccan and cooked in this:

a Tagine, which apparently moistens food. My dish was like a vegetable stew with couscous, very good though the appetizers disappointed me a bit with the dry pita bread. NATO man told me he admired my year in Belgium, and I thanked him, but later on during the meal he told me about the time he worked in Kosovo in the 90s and worked 120 hours a week for 10 months. He slept 4 hours or much less a night and worked basically non stop on organizing teams and crisis resolving. he survived on coffee and lots of cigarettes. When he came home to the States after his tour he slept for 4 days straight. And homeboy admires me!? Let’s just say he’s lived quite a life.

While looking for my friends NATO man and I found some Medieval reenactment going on in the Grand Place. I didn’t really get what was happening, but it was cool to watch.

Those were the best pictures my camera could manage, and trust me I tried my hardest for all you lovelies.

When I was six my family had an AFS exchange student from the Dutch speaking region of Belgium, Flanders. He now lives in Brussels and we reconnected before I came to Belgium. I spent the night at his apartment, as he lives near the Grand Place. I’ve been sleeping so intensely lately with crazy dreams, I think it’s because of the anticipation of going home soon. I gave host mama MC a blueberry plant for Mother’s day which suffered from some disease for a while (it’s better now!) and last night I dreamed that MC’s backyard was next to my house and the blueberry plant became all green and giant. My mom explained that she took care of it. The blueberries were as big as apples (too bad this isn’t real life here). I guess this symbolizes the fact that no one can fix a situation like your mama? When I woke up this morning I was surprised by how sore I was, then I remembered my session with Jillian yesterday? And that my friends, is why we do strength training. Lest I ever forget. Anyway, today my Flemish friend and I went to the Magritte museum.  I am a wannabe art buff and I was so excited to see this new museum, especially because I love Magritte. He is a Belgian artist and this museum has received a lot of hype recently. This is my favorite painting of his,

entitled Les Amants and this is one of his most well known works,

which is often referenced to. Unfortunately, the museum really disappointed me. The paintings didn’t have any explanations, which means you had to buy an audio guide if you wanted to understand the paintings better.  The collection didn’t include his best works, which I’ve seen at MOMA in New York. I can spend hours in an art museum and we were out of there in less than an hour. I’m glad I went though. Probably my favorite part of the museum was the exterior:

I remembered seeing an Ethiopian restaurant and my Flemish friend had never tried the cuisine so I said faut y aller (we must go). We took almost two hours walking around to find it, which was fine because it was a wonderful walk and we were starved when we did find it.  I also don’t have any photos of this meal, but try Ethiopian food, it’s very unique. It’s served on injera bread, made out of teff flour. It’s sort of like a crepe but with a sourdough, fermented taste. You eat with the injera by scooping the food and there are no utensils involved. Ethiopian food often includes lentils and lamb. Our meal included lentils, fish, stewed cabbage+carrots+potatoes, and spicy goat cheese+spinach salad.

I took some last photos of Brussels:

So strange to think this will be my last time in Brussels for a while!

My train ride home included some more coma like sleep, and host mama MC and I went to her parents’ house for some champagne. We also picked cherries and raspberries, and had some of her mom’s delicious vegetable soup. That and cherries will probably be my dinner, Ethiopian food is always a big feast for me and my tum is still enjoying all that injera goodness.

Tomorrow is my last day en Belgique. I can hardly believe it. This year feels like a long nap and I’m only now waking up.

Enjoy the fourth of July with your family and friends, I’ll definitely be thinking of mine! We usually spend the fourth at my mom’s best friend’s farm, with beautiful scenery, absolutely delicious food, and my dad’s attempt at fireworks. I’ll be there soon enough!

A toute à l’heure!

Maya

The good: the NYT has an article about Slovakia and the ongoing rivalry between Slovaks and Czechs (always nice to see some mainstream U.S. press on a topic vaguely pertaining to my research).

The bad: the article is probably oversimplifying things or overlooking key points (like the fact that the breakup of Czechoslovakia was relatively amicable and that Slovaks and Czechs still generally like each other).

The ugly: it’s a misinformed piece that also perpetuates some maddeningly inaccurate stereotypes about Slovaks.

Take, for instance, the “illustrative” photo that accompanies the article.

Link to Original:    http://www.treas.gov/press/releases/hp841.htm

Washington – Good morning, ladies and gentlemen. Thank you for your time and the opportunity to speak today.

I also would like to thank the Washington Institute for hosting me. The Washington Institute and the Treasury Department have had a long and fruitful relationship. My colleagues and I continue to benefit significantly from your excellent analysis and research on a regular basis. In particular, I am pleased to be reunited with two outstanding former colleagues, Matthew Levitt and Michael Jacobson, two of my hosts today.

Last year, Treasury’s Deputy Secretary Robert Kimmitt spoke to you about a Treasury Transformed. Today, I would like to build on those remarks and provide further detail on Treasury’s Office of Terrorism and Financial Intelligence (TFI). I will explain TFI’s perspective and strategic approach for combating not only terrorist financing, but also other threats to our national security, including WMD proliferation, rogue nations, kleptocracy, drug trafficking, money laundering, and organized crime more generally. I would then like to spend some time on TFI’s efforts to combat terrorist financing and how those efforts advance the broader U.S. counterterrorism mission. Finally, I want to briefly update you on TFI’s efforts to address the particular threats that we face from Iran, with respect to proliferation and its role as a state sponsor of terrorism. These efforts illustrate TFI’s broad range of statutory authorities, its effective government and private sector relationships, and substantive expertise in developing a comprehensive strategy to disrupt the ongoing threat posed by Iran.

TFI – An Overview

When Deputy Secretary Kimmitt spoke to you last year, he described the birth of TFI and broadly explained how TFI has given the Treasury Department and the Executive branch new and enhanced capabilities to combat borderless, asymmetric threats.

In the broadest sense, TFI has a threefold mission to:

(1) safeguard the financial system from criminal and illicit activity;

(2) produce financial analysis and information through the Bank Secrecy Act (BSA) to assist law enforcement and counter-terrorism authorities; and

(3) take targeted economic and financial action against threats to our national security or foreign policy interests.

To advance this mission, TFI, led by Under Secretary Stuart Levey, relies upon several offices that fall under its authority – the Office of Intelligence and Analysis (OIA), the Office of Foreign Assets Control (OFAC), the Financial Crimes Enforcement Network (FinCEN), the Executive Office of Asset Forfeiture (TEOAF), and my office, the Office of Terrorism Finance and Financial Crimes (TFFC).

OIA

Allow me to begin with the Office of Intelligence and Analysis. As the 9/11 Commission and others have rightly noted, actionable and timely intelligence is required to combat terrorism and its financiers. Our intelligence office, led by Assistant Secretary Janice Gardner, was created to provide expert, all-source analysis on financial and other support networks for terrorist groups, proliferators, and other key national security threats. Matt Levitt and Mike Jacobson were instrumental in standing up this office and building its operational capacity to serve TFI and Treasury’s growing intelligence needs.

Treasury relies on analysis from OIA to identify and take targeted economic or financial action against those who threaten our national security and seek to abuse our financial system. OIA analysis is the backbone behind the designation of individuals or entities engaged in terrorist activity, financing or support pursuant to Executive Order 13224. OIA is not simply the end-user of raw data, but informs the intelligence community’s perspective on financial information, shaping the manner and type of information gathered. In combination with information and analysis from TFI partners, OIA’s all-source intelligence analysis also contributes to:

(1) designation of those who threaten our national security pursuant to executive orders on proliferation and other national security threats;

(2) issuance of advisories to financial institutions to protect against heightened risks to the financial system;

(3) targeted outreach to jurisdictions or financial institutions about particular threats or bad actors; and

(4) actions under Section 311 of the Patriot Act to designate a jurisdiction, financial institution, class of transactions, or type of account as a “primary money laundering concern.”

The Office of Intelligence and Analysis represents a Treasury asset that is unique among finance ministries around the world. In fact, one of the primary challenges we face in strengthening our global approach to combating terrorist financing and other threats lies in encouraging and assisting our allies to develop similar capabilities. Furthermore, the success of OIA serves as an example to our partners of the critical need for a designated competent authority, which has the capacity and willingness to utilize intelligence in support of targeted financial measures, based on clear national legal authority.

OFAC

OFAC is another unique asset that is critical in advancing our efforts to combat terrorist financing and other national security threats. Led by Director Adam Szubin, OFAC is the office responsible for implementing, administering, and enforcing Treasury’s wide range of economic sanctions programs in support of the US Government’s national security and foreign policy interests. With respect to terrorist financing, OFAC implements and administers Executive Order 13224, a principal authority by which the USG designates those individuals and entities engaged in or otherwise supporting terrorist activity. It has similar authorities for narcotics trafficking and proliferation.

While the immediate legal effect of these designations – freezing any assets the target has under U.S. jurisdiction and preventing U.S. persons from doing business with them – is relatively straightforward and largely understood, the actual impact of these targeted economic sanctions is less visible and often misunderstood. Broadly speaking, these sanctions are preventive in nature. In simplest terms, they prevent terrorists from obtaining the resources and support they require to conduct their operations and execute attacks. Targeted economic sanctions also serve the following purposes:

(1) deterring non-designated parties who might otherwise be willing to finance terrorist activity;

(2) exposing terrorist financing “money trails,” which may generate leads to previously unknown terrorist cells and financiers;

(3) dismantling terrorist financing networks by encouraging designated persons to disassociate themselves from terrorist activity and renounce their affiliation with terrorist groups;

(4) terminating terrorist cash flows by shutting down the pipelines used to move terrorist related funds or other assets;

(5) forcing terrorists to use more costly, less efficient and riskier means of financing their activities, which can make them more susceptible to detection and disruption; and

(6) fostering international co-operation and compliance with obligations under

UNSCR 1267 and its successor resolutions, and UNSCR 1373.

To accomplish these objectives, targeted economic sanctions must be operationally implemented and enforced. OFAC is unique in that it is the only office in the world that is significantly resourced and dedicated exclusively to advancing these interests through licensing, outreach, compliance, and enforcement. As with TFI’s intelligence office, encouraging our partners to set up administrative bodies similar to OFAC represents another crucial challenge that we face in effectively globalizing our campaign against illicit finance. Operational capability is an essential tool for the international community to identify, disrupt, and help dismantle illicit networks.

FinCEN

Led by Director Jim Freis, FINCEN is primarily responsible for administering and enforcing the Bank Secrecy Act (BSA). This is one of the primary authorities that we rely upon to promote transparency in the U.S. financial system. Systemic transparency is a necessary precondition for advancing the threefold mission of TFI. In short, financial transparency provides the visibility required to safeguard the financial system, identify and extract information useful to law enforcement and counter-terrorism authorities, and take targeted action against those threats that operate within the financial system.

FinCEN promotes transparency through the BSA by promulgating and enforcing regulations that generally require covered financial institutions to develop and implement customer identification, recordkeeping, reporting, and anti-money laundering (AML) programs. In addition, FinCEN conducts analysis of the information that it receives from financial institutions to assist law enforcement and counter-terrorism authorities in initiating or advancing financial investigations. Finally, FinCEN works with counterparts from over 100 countries through the Egmont Group to facilitate the cross-border exchange of financial information in support of financial investigations. FinCEN serves as a gateway to financial intelligence units (FIUs) in foreign jurisdictions to assist in these financial investigations.

Key challenges that we face in effectively globalizing our counter-terrorism campaign lies in better utilizing these FIU relationships to advance terrorist financing investigations and promoting multi-lateral implementation of financial measures against terrorist organizations and their support networks.

TEOAF

The Treasury Executive Office of Asset Forfeiture (TEOAF) serves as a mechanism for re-investing forfeited illicit proceeds by funding cooperative initiatives among federal, state, and local authorities. Funds administered by TEOAF can be used to test new ideas and approaches to combat illicit finance. It is important, particularly for developing jurisdictions, to adopt sound forfeiture authorities and management mechanisms that exploit the ill-gotten resources of money launderers and terrorist financers and invest in much needed personnel, training, and equipment for AML/CFT supervision and enforcement.

TFFC

Finally, let me say a word about my office, the Office of Terrorist Financing and Financial Crimes.  TFFC develops and implements policies, strategies, and initiatives to:

identify and address vulnerabilities in the U.S. and international financial system, and

take targeted economic and financial action against security threats and their support networks. We also provide direct support to TFI’s Under Secretary, Stuart Levey, and Treasury leadership on issues that implicate TFI’s interests – particularly with respect to the activities of the National Security Council. In fulfilling these responsibilities, TFFC works closely with all elements of TFI and the Treasury, as well as with the inter-agency community, the private sector, and government ministries from around the world. We do this both bilaterally and through multilateral organizations such as the G7, the IFIs, the FATF, and the various FATF-Style Regional Bodies (FSRBs).

As I turn now to a specific discussion of our efforts to combat terrorist financing, I want to emphasize at the outset that these efforts are truly interagency and we are not in this fight alone. I’ll focus on Treasury’s role, but as the discussion will hopefully make clear, effective efforts to attack terrorist support networks involve all elements of the interagency working together: intelligence, law enforcement, diplomatic, and military. We benefit in this endeavor from strong relationships with our interagency partners, specifically the National Security Council’s planning and coordination through its Counterterrorism Security Group and its Sub-group on Terrorist Financing, and the efforts of the National Counterterrorism Center (NCTC).

Defining Terrorist Financing

Context and Scope of Terrorist Financing

In order to combat terrorist financing, one must first understand what terrorist financing actually is in a broader context. Combating the financing of terrorism is part of the broader war on terrorism. As such, our counter-terrorist financing efforts must focus not only on the relatively narrow perspective of finance, but also on the wider landscape of terrorist support, including those structures and organizations that terrorists rely upon to execute their attacks and advance their agendas.

Such a broad view of terrorist financing and support is essential in understanding the importance of our work. We have all heard the arguments posed by those who question the effectiveness of counter-terrorist financing efforts. These critics point to the minimal costs and relative ease of procuring materials that are often used in terrorist attacks such as precursor chemicals or suicide belts. However, as many scholars in this room have pointed out, these arguments ignore the much larger and sustained expenses required to finance the terrorist life cycle – to include propaganda, radicalization, recruitment, and popular support gained through the delivery of welfare and social services and the development of organized media and political campaigns among vulnerable populations. They ignore the training, travel, and operational support that terrorists require to be successful. They ignore the costs of securing and protecting safe havens from which terrorists can plan and organize their operations. And perhaps most importantly, they ignore the massive devastation that terrorists could inflict if they were to have the financial and logistical means to acquire weapons of mass destruction.

Elements of Terrorist Financing

This understanding of the broader costs required to sustain and make operational the terrorist threat explains the USG’s focus on terrorist organizations and their support networks. It also informs our perspective in focusing on the elements of terrorist financing. These elements can be roughly divided between sources and conduits of terrorist financing or support.

Experience indicates that terrorist operatives, cells, and organizations rely on three general sources of financing and support: donors – particularly ideologically motivated individuals, but also funds raised by or through charities from witting or unwitting donors, criminal proceeds; and state sponsorship.

Experience also indicates that terrorist operatives, cells, and organizations – like many criminal organizations – exploit all three fundamental ways to move value as conduits of terrorist financing and support. These conduits include: the formal financial system, the physical movement of currency, and the physical movement of goods through the trade system. In exploiting these three fundamental ways of transferring value, terrorist organizations and their support networks may employ several different mechanisms, including wire transfers, cash couriers, charities, and informal value transfer systems (IVTS), which include alternative remittance systems such as hawala. Hawaladars, like operators of other informal value transfer systems, may conduct transactions and settlement activity through all three ways of moving value – the formal financial system, cash, or trade.

The challenge inherent in this broad recognition of how terrorist operatives, cells, and organizations raise and move funds and support is that it demonstrates the complex, dynamic, and global nature of terrorist financing. The various sources and conduits of funds also illustrate how interdependent our global financial system is, and the critical need to work with our foreign partners and the private sector, including in non-financial industries such as the charitable sector, and in traditionally unregulated sectors such as hawala and remittance systems. Terrorist financing is not static – it adapts and constantly seeks to exploit vulnerabilities in our financial and trade systems.

Nonetheless, this emphasis on the elements of various terrorist financing sources and conduits provides a useful framework for developing and applying TFI’s general strategic approach to combating this threat.

Combating Terrorist Financing

Consistent with our general strategic mission and perspective, TFI has adopted a comprehensive approach to combat the various sources and conduits of terrorist financing and support. This comprehensive approach includes:

(1) developing, implementing, and globalizing measures and initiatives to close systemic vulnerabilities;

(2) targeting – identifying critical nodes of terrorist support;

(3) developing, implementing, and globalizing targeted actions and initiatives against those nodes; and

(4) enhancing implementation through private sector outreach.

Systemic Measures and Initiatives

Systemically, in order to better protect against, identify, and intercept terrorist support networks, TFI focuses on enhancing the transparency of the financial system and those industries and financing mechanisms particularly vulnerable to those networks.

Domestically, TFI has generally strengthened and expanded the BSA through FinCEN’s implementation of Title III of the PATRIOT Act to promote greater transparency across the financial system since the terrorist attacks of 9/11. These efforts have included a host of regulations that strengthen pre-existing AML controls in banking and other financial sectors, as well as regulations that extend AML customer identification, recordkeeping, reporting, and AML programmatic requirements to new industries. This has improved our overall ability to identify not only terrorist-financing-related transactions, accounts, and actors, but also other illicit financing threats.

Internationally, through our leadership of the USG delegation at the FATF and the various FSRBs, TFI has assisted in substantially improving the global transparency of the financial system. These efforts have focused on setting standards – as evidenced by the adoption and development of the FATF Special Recommendations on Terrorist Financing – and creating accountability and capacity for implementing those standards through mutual evaluations, training, and technical assistance.

TFI has focused systemic efforts on the mechanisms and industries particularly vulnerable to terrorist financing – including cross-border wire transfers, charities, cash couriers, and trade-based systems.

For example:

Cross-border wire transfers – TFI has collaborated with industry to improve the transparency of cover payments and Automated Clearing House payments. We have also led international efforts through the FATF to develop an international standard requiring the inclusion of originator information on cross-border wire transfers.

Charities – TFFC has worked together with the IRS to promote greater transparency through stronger reporting requirements for those charities seeking tax-exempt recognition from the IRS. TFFC has also led TFI’s engagement with the charitable sector and developed Treasury’s Anti-Terrorist Financing Guidelines: Voluntary Best Practices for U.S.-Based Charities. More broadly, TFFC has led a USG and global approach through the FATF to combating terrorist exploitation of charities by developing an international standard, which includes strengthening oversight, enforcement, outreach, and international engagement. TFFC has also led USG and international efforts to publish ongoing threat information and typologies regarding this threat.

Cash couriers – TFFC has worked with Immigration and Customs Enforcement (ICE) to promote transparency and detect the use of cash couriers by leading a global approach requiring cross-border declaration or disclosure of currency and bearer negotiable instruments. This is illustrated by the adoption of a new international standard and associated guidance by the FATF.

Trade transparency – TFFC is also working with ICE to facilitate transparency across the global trade-based system by proposing a new international standard at the FATF. Moreover, TEOAF has funded the development of ICE’s innovative trade transparency unit, which is working to establish similar counterparts in other countries to exchange trade data for purposes of detecting trade-based money laundering.

Targeting

We are working constantly to focus Treasury’s substantial authorities and resources on selecting terrorist financing targets that can have the most impact. Several times a week, staff of TFI offices gathers with TFI leadership to discuss specific targets. OIA, using all-source intelligence, develops a picture of the target complemented by OFAC and FINCEN data and analysis. The group then reviews what courses of action available to Treasury – administrative, regulatory, formal, or informal – could disrupt or shut down the threat. Courses of action are then developed and coordinated through the Sub-CSG on Terrorist Financing and other mechanisms, as necessary.

Globalizing Targeted Actions and Initiatives

The U.S. is most effective in combating terrorist support networks when it can act multilaterally. On this front, OFAC and TFFC have led TFI’s efforts to globalize targeted sanctions against terrorist financing by providing substantive expertise to the State Department in the successful development of global terrorist financing sanctions regimes through UN Security Council Resolution 1267 and its successor resolutions, as well as UNSCR 1373. TFFC has facilitated global implementation of these sanctions regimes by leading the development of an international standard and associated guidance at the FATF.

Challenges remain, however, in facilitating global compliance with these sanctions obligations. To address this, TFI has led the development of workshops at the FATF and the Asia Pacific Group – the largest FSRB – as well as with the European Union. These efforts have led to a better understanding of the operational components of a sanctions regime at a national level in accordance with UNSCR 1373. TFFC and OFAC are also engaged with the State Department to strengthen the 1267 sanctions regime at the UN. Additional challenges include how to strike the appropriate balance between due process concerns regarding independent review of UN designations with the need to generate more robust targeting submissions from member states. Lastly, efforts are continuing to streamline the execution of designations by the Al Qaeda and Taliban Sanctions Committee.

Private Sector Outreach

The private sector is also a critical partner in the effective implementation of sanctions and thus outreach and dialogue with them is extremely important. Within TFI, OFAC conducts ongoing outreach across the U.S. financial system and vulnerable non-financial industries to facilitate sanctions implementation. FinCEN similarly engages in constant outreach to all financial industries covered under the BSA, through a variety of efforts, including through the Bank Secrecy Act Advisory Group (BSAAG). These ongoing efforts are essential to facilitating domestic implementation of the targeted and systemic authorities that TFI possesses.

Another example of our outreach efforts is Treasury and our USG partners’ engagement with the charitable sector and affected communities in the United States concerning terrorist organizations’ exploitation of charities. Almsgiving is an important expression of religious faith for Muslims throughout the world and charity is one of the pillars of Islam. It is also a core American value and integral part of American culture and society. It is a sad reality, but terrorist organizations continue to effectively exploit charity to finance their operations and to cultivate broader support from vulnerable populations. In response to this ongoing threat, TFI has worked with its interagency partners to develop a multi-pronged strategy to combat such exploitation, a key element of which is raising awareness of terrorist financing threats and risk mitigation practices in the charitable sector through comprehensive and sustained outreach.

Internationally, TFFC is working with a number of partners from the private sector, multilateral organizations, and bilateral counterparts to promote private sector implementation of sound AML/CFT controls in banking communities across the Middle East / North Africa (MENA) and Latin American (LA) regions. TFFC is advancing these efforts through the creation of Private Sector Dialogue (PSD) initiatives that bring representatives of U.S. banks together with private sector counterparts from key regions. The PSD allows us to raise awareness of money laundering and terrorist financing risks; to facilitate a better understanding of effective practices and programs to combat such risks; to strengthen implementation of effective AML/CFT controls; and to exchange information and improve understanding of business cultures and norms.

Iran

Given the Washington Institute’s extensive work on Iran, I also wanted to take this opportunity briefly remark on some of the major developments that have occurred since Deputy Secretary Kimmitt’s last visit. In May, the Deputy Secretary noted that the United States has employed a two-fold sanctions strategy utilizing domestic authorities and engaging in intense international outreach highlighting deceptive conduct by Iran and its state-owned banks.

To date, in addition to a variety of domestic U.S. actions, multilateral efforts have yielded critical success in the adoption of two Chapter VII UN Security Council Resolutions – Resolutions 1737 and 1747 – imposing significant sanctions on Iran. These resolutions target Iran’s nuclear and missile programs and, among other requirements, obligate states to freeze the assets of named entities and individuals associated with those programs. Perhaps most significantly on the finance side, the Security Council recognized the role that Iran’s state-owned banks have played in facilitating Iran’s proliferation activities in particular with the designation of Bank Sepah.

As the Deputy Secretary noted, domestic and international actions have been accompanied by Treasury’s unprecedented outreach to the international private sector, meeting with more than 40 banks around the world to share information and discuss the risks of doing business with Iran. 

Since May, there have been some significant developments both on the domestic and international fronts.

In October, FATF issued a public statement confirming the extraordinary systemic risks that Iran poses to the global financial system. FATF also issued guidance to assist countries in implementing the financial provisions of the UN resolutions on Iran. That guidance identified customers and transactions associated with Iran as representing a significant risk of involvement in proliferation finance. Consistent with the FATF statement, jurisdictions all over the world have begun issuing warnings to their financial institutions of such risks

Conclusion

These principals hold true with respect to all illicit financing threats be they terrorism, proliferation, narcotics, or other criminal conduct. While in the past our broad-based country sanctions have been criticized by some as an inappropriate extension of U.S. law, these new targeted efforts have the effect of engaging our allies. Sanctions have the most comprehensive impact when applied cooperatively and collectively. We are working hard internationally, with governments and the private sector, to build consensus and capacity to do just that.

Thank you.

"Freedom of the press is guaranteed only to those who own one."

In his recent article in CounterPunch, George Ciccariello-Maher likens recent events in Honduras to an ”iron fist with a velvet glove” and notes that “while it may feel softer, it’s as ‘interventionist’ as ever…”

The recent street rebellions against the Ahmadinejad regime in Iran were touted by many as the first baptism-by-fire of Twitter as a political tool. Celebratory articles abounded for a brief time, before such foolish dreams came crashing back to earth under the weight of a metric ton of misinformation, unsubstantiated rumor, and idle gossip.

Any Iranian foolish to put her hopes in this most fickle of constituencies that is the Tweeter must have begun to doubt the wisdom of such an approach as short attention spans inevitably set in and, most devastatingly of all, the death of Michael Jackson stole the headlines. Ahmadinejad couldn’t have planned it better if he had offed MJ himself (in cahoots, perhaps, with South Carolina Governor Mark Sanford, the other clear beneficiary of Jackson’s untimely demise). Indeed, the Iranian dissidents were the biggest losers of the day, suffering an even worse fate than Ed McMahon, Farrah Fawcett, and Billy Mays, condemned to historical oblivion by sheer bad timing. But to this list of those suffering from the technophiles’ abandonment of their brief flirtation with the political, we must now add Manuel “Mel” Zelaya, legitimately elected president of Honduras, recently deposed in a barefaced military coup from the far right.

Zelaya, a former centrist who has recently made leftward moves, raised the ire of the entrenched Honduran oligarchy by, among other things, joining the Bolivarian Alternative for the Americas (ALBA), a radical counterpoint to U.S.-promoted free trade agreements. His overthrow has been followed by a press blackout, military curfew, and repression in the streets, as hundreds of thousands have rallied to the cause of their former leader, only to meet an iron heel reminiscent of Honduran military regimes of the past (dodging bullets in the street, as the magnificent BoRev puts it, “is sort of like Twittering, for poor people”). There have been mass arrests, injuries, and deaths, but some exceptions notwithstanding, these Hondurans are nevertheless, to quote one observer, “Protesters We Don’t Tweet About.”

Comparison to the April 2002 coup against Chávez seems obvious to many. For Kiraz Janicke, for example, the move against Zelaya constitutes a “carbon copy” of the earlier coup, while Atilio Boron calls it a “repeat” of Chávez’s brief ouster. Certainly, Zelaya is no Chávez, and as we will see, Obama is certainly no Bush, but especially in light of efforts on the liberal left to deny any similarity, it is worthwhile nevertheless laying out the striking parallels between the strategies adopted by the Honduran golpistas and their Venezuelan counterparts:

But speaking of premeditation, we come to arguably the most important similarity, one which has been controversial in recent days, as liberal/leftist supporters of Obama bend over backwards to reinforce their waning “hope” in the final days of the post-electoral honeymoon: the covert U.S. role in the coup.

Previously resigned Obamaphiles, desperate to grasp at any shred of proof suggesting that they were right to get high on hope and expect imminent change, are closing ranks around their government and insisting that the U.S. government’s response to the Honduran coup is proof positive of such change. Some even go so far as to claim that the Obama administration’s support for Zelaya has been “unambiguous,” adding that “complaints that Washington hasn’t acted fast enough to denounce the Honduran coup are silly and ignorant on the face of them.”

Let’s be clear: no one is saying that U.S. foreign policy is the same under Obama as under Bush, but nor did we expect them to be. Rather, we expected things to look very different while maintaining an underlying continuity. And for anyone who looks closely, Washington’s response to the Honduran coup has been the definition of ambiguity, and such knee-jerk reactions to criticism simply fail to explain the subtle progression of this response, and moreover willfully neglect the subtleties and nuances that State Department officials and Obama himself have deployed. Let’s lay this out briefly:

On Sunday, at a meeting with narco-terrorist Colombian president Alvaro Uribe, Obama issued the following carefully-worded statement:

“I am deeply concerned by reports coming out of Honduras regarding the detention and expulsion of President Mel Zelaya. As the Organization of American States did on Friday, I call on all political and social actors in Honduras to respect democratic norms, the rule of law and the tenets of the Inter-American Democratic Charter. Any existing tensions and disputes must be resolved peacefully through dialogue free from any outside interference.”

Such a purposefully-vague statement was meant to communicate a wait-and-see approach: yes, we are “deeply concerned,” but what’s done is done and we must now work toward the reestablishment of “democratic norms.” The implication is clear: fascistic coup leaders are quite capable of leading a transition back toward the very same democracy they attacked, and the United States is still hoping to avoid Zelaya’s return.

Some commentators were understandably perplexed when the text of a conference call with unnamed “Senior State Department Officials” was released later Sunday, claiming that the United States recognizes only Zelaya as the legitimate leader of Honduras, while implying that the State Department would be calling for his return via an OAS resolution. But the sharp disconnect between this statement and Obama’s vagaries would only deepen when Secretary of State Clinton stepped into the fray, contradicting claims by both the president and the unnamed senior officials by insisting that the U.S. is not currently classifying events in Honduras as a coup and is not yet demanding Zelaya’s return, but only a vague return to democratic normalcy.

This, of course was another hedge, allowing the State Department leeway both to negotiate with and carry on business as usual with the coup regime were it to remain andto pressure Zelaya for a conditional return. As to the former, the U.S. seems unwilling to take the risk of cutting direct aid to Honduras, a legal requirement if a “coup” is declared. The latter is arguably more important: the State Department under Clinton most certainly did not support Zelaya’s efforts to radically challenge entrenched elites through a constitutional reform, and will likely pressure him to return humbled and defanged, with no such transformative aspirations.

John Negroponte, for one, sees things this way, arguing that Clinton “wants to preserve some leverage to try and get Zelaya to back down from his insistence on a referendum.” And when it comes to containing and undermining Central American leftists, few know the playbook by heart like Negroponte, who as U.S. ambassador to Honduras during the Contra wars personally oversaw both death squads and the drug trade. Indeed, against all the left-liberal defenders of the Obama administration, it was probably Mara Liason who was closest to the truth when, speaking as one of three panelists on Fox News (all of whom, incidentally, support the coup), argued that:

“I think they are perfectly happy with the outcome… Now, I think it’s the correct public diplomacy and policy to say, of course we’re for the democratically elected president and we don’t like coups in Latin America, but when all the dust settles, they will be perfectly happy to work with this new guy. They are not working to get Zelaya back into power… This is the outcome the United States would have preferred, this is not the method they would want to publicly condone.”

This is the iron fist with a velvet glove: while it may feel softer, it’s as “interventionist” as ever.

But all this aside, what is truly shocking is that the government is being taken at its word in the first place. Here, the White House and State Department functions as a stand-in for the U.S. state as a whole, obscuring an entire history of underhanded interventionism, especially from the CIA. Few have sought more insistently to reveal this dark underside of U.S. interventionism in Latin America than Eva Golinger, whose legal efforts to demand the release of government documents under the Freedom of Information Act (FOIA) revealed the true extent of the Bush administration’s role in the 2002 coup against Chávez (published in The Chávez Code). Golinger, who has been liveblogging the coup as it has progressed, describes a situation in which it would be utterly implausible to assume the United States government was not at least passively involved:

“The United States maintains a military base in Soto Cano, Honduras, that houses approximately 500 soldiers and special forces. The U.S. military group in Honduras is one of the largest in U.S. Embassies in the region. The leaders of the coup today are graduates of the U.S. School of the Americas, a training camp for dictators and repressive forces in Latin America…The US Military Group in Honduras trains around 300 Honduran soldiers every year, provides more than $500,000 annually to the Honduran Armed Forces and additionally provides $1.4 million for a military education and exchange program for around 300 more Honduran soldiers every year.”

As Greg Grandin described the situation on Democracy Now!: “The Honduran military is effectively a subsidiary of the United States government… if any Latin American country is fully owned by the United States, it’s Honduras… So if the U.S. is opposed to this coup going forward, it won’t go forward.” To which we could add Jeremy Scahill’s response: “Obama and the US military could likely have halted this coup with a simple series of phone calls,” or, we might add, by threatening to pull funding (which now, even after the coup, they seem unwilling to do). When we consider the leverage the U.S. enjoys in Honduras, claims by the Obama administration that they attempted to prevent the coup border on the absurd. Even more absurd, however, are efforts to defend the continued funding of a coup regime as “progress.”

Here, unfortunately, the frequently admirable Al Giordano of Narco News falls deeply into contradiction. For some inexplicable reason, Giordano has in recent weeks adopted as his modus operandi the flimsiest of pop psychology, first diagnosing those expressing any hesitancy whatsoever about the Iranian rebellion as suffering a profound case of Cold War nostalgia, before then transposing this same exact argument onto those critical of the Obama administration’s response to Zelaya’s ouster. Setting his sights on Golinger in particular, who he accuses of “screeching” about the U.S. bogeyman, “not operating with a full deck of cards,” and “crying wolf” to fool the masses (an accusation which is sharply at odds with his description of aloof leftists who have lost their Cold War coordinates and simply can’t figure things out), Giordano concludes with astounding self-seriousness: “In this hour, those that adhere strictly to the documented facts are those that are showing character worth trusting, today and into the future.”

But Giordano’s contradictory rhetoric of “documented facts” would have prevented him from accurately understanding the Venezuelan coup of 2002 (since the “facts” were very much contested), and especially the U.S. role. Such things are not advertised, and required the painstaking legal work of Golinger herself to reveal. Were it not for Golinger’s departure from the “documented facts” parroted by press and government alike, we would never have known what happened in April 2002. As Golinger herself puts it: much like today in Honduras, “during the April 2002 coup against Chávez in Venezuela, the State Department also claimed it knew of the coup and tried to ‘stop’ it. Later, in my investigations, it was discovered through documents from State and CIA declassified under the Freedom of Information Act (FOIA) that CIA, State and other US agencies, funded, supported, advised and armed the coup leaders.”

When in 2002 we insisted that the CIA was involved, would Giordano have accused us of “crying wolf”? When we questioned the established facts and sought to painstakingly establish our own, would he have sat us on the couch to psychoanalyze our “Cold War nostalgia”? But of course, Giordano did not follow his own advice in 2002. If we are to understand what happens, we need to approach the “documented facts” from a more critical (dare I say, dialectical?) perspective. We need to draw on our historical understanding, on our grasp of the forces in play, and insistently create our own facts and truths. Otherwise, we’ll always be one step behind the enemy, and unwittingly attacking our comrades.

As it stands, the coup against Zelaya seems to be running out of steam. Zelaya has announced he will return to Honduras after the OAS ultimatum expires in 72 hours, and flanked by heads of state and OAS head José Miguel Insulza no less, while the coup leaders insist that he will be arrested on sight. Social movements are mobilized, and some army battalions are refusing to accept the coup government. Unless they are prepared to take the low road of outright repression, it seems likely that the coup leaders will need to crawl back into their hole and wait for the next manufactured crisis.

George Ciccariello-Maher is a Ph.D. candidate in political theory at U.C. Berkeley. He is currently completing a book entitled We Created Him: A People’s History of the Bolivarian Revolution, and can be reached at gjcm(at)berkeley.edu.

July 3, 2009 at 10:01 pm