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The Saudi Arabian Money-laundering Affair

4/17/2016

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By John Perkins, Confessions of an Economic Hit Man

In 1974, a diplomat from Saudi Arabia showed me photos of Riyadh, the capital of his country. Included in these photos was a herd of goats rummaging among piles of refuse outside a government building. When I asked the diplomat about them, his response shocked me. He told me that they were the city’s main garbage disposal system.

“No self-respecting Saudi would ever collect trash,” he said. “We leave it to the beasts.”
Goats! In the capital of the world’s greatest oil kingdom. It seemed unbelievable.

At the time, I was one of a group of consultants just beginning to try to piece together a solution to the oil crisis. Those goats led me to an understanding of how that solution might evolve, especially given the country’s pattern of development over the previous three centuries.

Saudi Arabia’s history is full of violence and religious fanaticism. In the eighteenth century, Mohammed ibn Saud, a local warlord, joined forces with fundamentalists from the ultraconservative Wahhabi sect. It was a powerful union, and during the next two hundred years the Saud family and their Wahhabi allies conquered most of the Arabian Peninsula, including Islam’s holiest sites, Mecca and Medina.

Saudi society reflected the puritanical idealism of its founders, and a strict interpretation of Koranic beliefs was enforced. Religious police ensured adherence to the mandate to pray five times a day. Women were required to cover themselves from head to toe. Punishment for criminals was severe; public executions and stonings were common. During my first visit to Riyadh, I was amazed when my driver told me I could leave my camera, briefcase, and even my wallet in plain sight inside our car, parked near the open market, without locking it.

“No one,” he said, “would think of stealing here. Thieves have their hands cut off.”
Later that day, he asked me if I would like to visit so-called Chop Chop Square and watch a beheading. Wahhabism’s adherence to what we would consider extreme puritanism made the streets safe from thieves—and demanded the harshest form of corporal punishment for those who violated the laws. I declined the invitation.

The Saudi view of religion as an important element of politics and economics contributed to the oil embargo that shook the Western world. On October 6, 1973 (Yom Kippur, the holiest of Jewish holidays), Egypt and Syria launched simultaneous attacks on Israel. It was the beginning of the October War—the fourth and most destructive of the Arab-Israeli wars, and the one that would have the greatest impact on the world. Egypt’s President Sadat pressured Saudi Arabia’s King Faisal to retaliate against the United States’ complicity with Israel by employing what Sadat referred to as “the oil weapon.” On October 16, Iran and the five Arab Gulf states, including Saudi Arabia, announced a 70 percent increase in the posted price of oil.

Meeting in Kuwait City, Arab oil ministers pondered further options. The Iraqi representative was vehemently in favor of targeting the United States. He called on the other delegates to nationalize American businesses in the Arab world, to impose a total oil embargo on the United States and on all other nations friendly to Israel, and to withdraw Arab funds from every American bank. He pointed out that Arab bank accounts were substantial and that this action could result in a panic not unlike that of 1929.

Other Arab ministers were reluctant to agree to such a radical plan, but on October 17 they did decide to move forward with a more limited embargo, which would begin with a 5 percent cut in production and then impose an additional 5 percent reduction every month until their political objectives were met. They agreed that the United States should be punished for its pro-Israeli stance and should therefore have the most severe embargo levied against it. Several of the countries attending the meeting announced that they would implement cutbacks of 10 percent, rather than 5 percent.

On October 19, President Nixon asked Congress for $2.2 billion in aid to Israel. The next day, Saudi Arabia and other Arab producers imposed a total embargo on oil shipments to the United States.1

The oil embargo ended on March 18, 1974. Its duration was short, its impact immense. The selling price of Saudi oil leaped from $1.39 a barrel on January 1, 1970, to $8.32 on January 1, 1974.2 Politicians and future administrations would never forget the lessons learned during the early- to mid-1970s. In the long run, the trauma of those few months served to strengthen the corporatocracy; its three pillars —big corporations, international banks, and government—bonded as never before. That bond would endure.

The embargo also resulted in significant attitude and policy changes. It convinced Wall Street and Washington that such an embargo could never again be tolerated. Protecting our oil supplies had always been a priority; after 1973, it became an obsession. The embargo elevated Saudi Arabia’s status as a player in world politics and forced Washington to recognize the kingdom’s strategic importance to our own economy. Furthermore, it encouraged U.S. corporatocracy leaders to search desperately for methods to funnel petrodollars back to America, and to ponder the fact that the Saudi government lacked the administrative and institutional frameworks to properly manage its mushrooming wealth.

For Saudi Arabia, the additional oil income resulting from the price hikes was a mixed blessing. It filled the national coffers with billions of dollars; however, it also served to undermine some of the strict religious beliefs of the Wahhabis. Wealthy Saudis traveled around the world. They attended schools and universities in Europe and the United States. They bought fancy cars and furnished their houses with Western-style goods. Conservative religious beliefs were replaced by a new form of materialism—and it was this materialism that presented a solution to fears of future oil crises.

Almost immediately after the embargo ended, Washington began negotiating with the Saudis, offering them technical support, military hardware and training, and an opportunity to bring their nation into the twentieth century, in exchange for petrodollars and, most importantly, assurances that there would never again be another oil embargo. The negotiations resulted in the creation of a most extraordinary organization, the United States–Saudi Arabian Joint Economic Commission. Known as JECOR, it embodied an innovative concept that was the opposite of traditional foreign aid programs: it relied on Saudi money to hire American firms to build up Saudi Arabia.

Although overall management and fiscal responsibility were delegated to the U.S. Department of the Treasury, this commission was independent to the extreme. Ultimately, it would spend billions of dollars over a period of more than twenty-five years, with virtually no congressional oversight. Because no U.S. funding was involved, Congress had no authority in the matter, despite Treasury’s role. After studying JECOR extensively, David Holden and Richard Johns conclude, “It was the most far-reaching agreement of its kind ever concluded by the U.S. with a developing country. It had the potential to entrench the U.S. deeply in the Kingdom, fortifying the concept of mutual interdependence.”

The Department of the Treasury brought MAIN in at an early stage to serve as an adviser. I was summoned and told that my job would be critical, and that everything I did and learned should be considered highly confidential. From my vantage point, it seemed like a clandestine operation. At the time, I was led to believe that MAIN was the lead consultant in that process; I subsequently came to realize that we were one of several consultants whose expertise was sought.

Since everything was done in the greatest secrecy, I was not privy to Treasury’s discussions with other consultants, and I therefore cannot be certain about the importance of my role in this precedent-setting deal. I do know that the arrangement established new standards for EHMs and that it launched innovative alternatives to the traditional approaches for advancing the interests of empire. I also know that most of the scenarios that evolved from my studies were ultimately implemented, that MAIN was rewarded with one of the first major—and extremely profitable—contracts in Saudi Arabia, and that I received a large bonus that year.

My job was to develop forecasts of what might happen in Saudi Arabia if vast amounts of money were invested in its infrastructure, and to map out scenarios for spending that money. In short, I was asked to apply as much creativity as I could to justifying the infusion of hundreds of millions of dollars into the Saudi Arabian economy, under conditions that would include U.S. engineering and construction companies. I was told to do this on my own, not to rely on my staff, and I was sequestered in a small conference room several floors above the one where my department was located. I was warned that my job was both a matter of national security and potentially very lucrative for MAIN.

I understood, of course, that the primary objective here was not the usual—to burden this country with debts it could never repay—but rather to find ways that would assure that a large portion of petrodollars found their way back to the United States. In the process, Saudi Arabia would be drawn in, its economy would become increasingly intertwined with and dependent upon ours, and presumably it would grow more Westernized and therefore more sympathetic with and integrated into our system.

Once I got started, I realized that the goats wandering the streets of Riyadh were the symbolic key; they were a sore point among Saudis jet-setting around the world. Those goats begged to be replaced by something more appropriate for this desert kingdom that craved entry into the modern world. I also knew that OPEC economists were stressing the need for oil-rich countries to obtain more value-added products from their petroleum. Rather than simply exporting crude oil, the economists were urging these countries to develop industries of their own, to use this oil to produce petroleum-based products they could sell to the rest of the world at a higher price than that brought by the crude itself.

This twin realization opened the door to a strategy I felt certain would be a win-win situation for everyone. The goats, of course, were merely an entry point. Oil revenues could be employed to hire U.S. companies to replace the goats with the world’s most modern garbage collection and disposal system, and the Saudis could take great pride in this state-of-the-art technology.

I came to think of the goats as one side of an equation that could be applied to most of the kingdom’s economic sectors, a formula for success in the eyes of the royal family, the U.S. Department of the Treasury, and my bosses at MAIN. Under this formula, money would be earmarked to create an industrial sector focused on transforming raw petroleum into finished products for export. Large petrochemical complexes would rise from the desert, and around them, huge industrial parks. Naturally, such a plan would also require the construction of thousands of megawatts of electrical generating capacity, transmission and distribution lines, highways, pipelines, communications networks, and transportation systems, including new airports, improved seaports, a vast array of service industries, and the infrastructure essential to keep all these cogs turning.

We all had high expectations that this plan would evolve into a model of how things should be done in the rest of the world. Globe-trotting Saudis would sing our praises; they would invite leaders from many countries to come to Saudi Arabia and witness the miracles we had accomplished; those leaders would then call on us to help them devise similar plans for their countries and—in most cases, for countries outside the ring of OPEC—would arrange World Bank or other debt-ridden methods for financing them. The global empire would be well served.

As I worked through these ideas, I thought of the goats, and the words of my driver often echoed in my ears: “No self-respecting Saudi would ever collect trash.” I had heard that refrain repeatedly, in many different contexts. It was obvious that the Saudis had no intention of putting their own people to work at menial tasks, whether as laborers in industrial facilities or in the actual construction of any of the projects.

In the first place, there were too few of them. In addition, the royal House of Saud had indicated a commitment to providing its citizens with a level of education and a lifestyle that were inconsistent with those of manual laborers. The Saudis might manage others, but they had no desire or motivation to become factory and construction workers. Therefore, it would be necessary to import a labor force from other countries—countries where labor was cheap and where people needed work. If possible, the labor should come from other Middle Eastern or Islamic countries, such as Egypt, Palestine, Pakistan, and Yemen.

This prospect created an even greater new stratagem for development opportunities. Mammoth housing complexes would have to be constructed for these laborers, as would shopping malls, hospitals, fire and police department facilities, water and sewage treatment plants, electrical, communications, and transportation networks—in fact, the end result would be to create modern cities where once only deserts had existed. Here, too, was the opportunity to explore emerging technologies in, for example, desalinization plants, microwave systems, health care complexes, and computer technologies.

Saudi Arabia was a planner’s dream come true, and also a fantasy realized for anyone associated with the engineering and construction business. It presented an economic opportunity unrivaled by any other in history: an underdeveloped country with virtually unlimited financial resources and a desire to enter the modern age in a big way, very quickly.

I must admit that I enjoyed this job immensely. There was no solid data available in Saudi Arabia, in the Boston Public Library, or anywhere else that justified the use of econometric models in this context. In fact, the magnitude of the job—the total and immediate transformation of an entire nation on a scale never before witnessed—meant that even had historical data existed, it would have been irrelevant.

Nor was anyone expecting this type of quantitative analysis, at least not at this stage of the game. I simply put my imagination to work and wrote reports that envisioned a glorious future for the kingdom. I had rule-of-thumb numbers I could use to estimate such things as the approximate cost to produce a megawatt of electricity, a mile of road, or adequate water, sewage, housing, food, and public services for one laborer. I was not supposed to refine these estimates or to draw final conclusions. My job was simply to describe a series of plans (more accurately, perhaps, “visions”) of what might be possible, and to arrive at rough estimates of the costs associated with them.

I always kept in mind the true objectives: maximizing payouts to U.S. firms and making Saudi Arabia increasingly dependent on the United States. It did not take long to realize how closely the two went together; almost all the newly developed projects would require continual upgrading and servicing, and they were so highly technical as to assure that the companies that originally developed them would have to maintain and modernize them. In fact, as I moved forward with my work, I began to assemble two lists for each of the projects I envisioned: one for the types of design-and-construction contracts we could expect, and another for long-term service and management agreements. MAIN, Bechtel, Brown & Root, Halliburton, Stone & Webster, and many other U.S. engineers and contractors would profit handsomely for decades to come.

Beyond the purely economic, there was another twist that would render Saudi Arabia dependent on us, though in a very different way. The modernization of this oil-rich kingdom would trigger adverse reactions. For instance, conservative Muslims would be furious; Israel and other neighboring countries would feel threatened. The economic development of this nation was likely to spawn the growth of another industry: protecting the Arabian Peninsula. Private companies specializing in such activities, as well as the U.S. military and defense industry, could expect generous contracts—and, once again, long-term service and management agreements. Their presence would require another phase of engineering and construction projects, including airports, missile sites, personnel bases, and all of the infrastructure associated with such facilities.

I sent my reports in sealed envelopes through interoffice mail, addressed to “Treasury Department Project Manager.” I occasionally met with a couple of other members of our team—vice presidents at MAIN and my superiors. Since we had no official name for this project, which was still in the research and development phase and was not yet part of JECOR, we referred to it only—and with hushed voices—as SAMA. Ostensibly, this stood for Saudi Arabian Money-laundering Affair, but it was also a tongue-in-cheek play on words; the kingdom’s central bank was called the Saudi Arabian Monetary Agency, or SAMA.

Sometimes a Treasury representative would join us. I asked few questions during these meetings. Mainly, I just described my work, responded to their comments, and agreed to try to do whatever was asked of me. The vice presidents and Treasury representatives were especially impressed with my ideas about the long-term service and management agreements. It prodded one of the vice presidents to coin a phrase we often used after that, referring to the kingdom as “the cow we can milk until the sun sets on our retirement.” For me, that phrase always conjured images of goats rather than cows.

It was during those meetings that I came to realize that several of our competitors were involved in similar tasks, and that in the end we all expected to be awarded lucrative contracts as a result of our efforts. I assumed that MAIN and the other firms were footing the bill for this preliminary work, taking a short-term risk in order to throw our hats into the ring. This assumption was reinforced by the fact that the number I charged my time to on our daily personal time sheets appeared to be a general and administrative overhead account. Such an approach was typical of the research and development/proposal preparation phase of most projects. In this case, the initial investment certainly far exceeded the norm, but those vice presidents seemed extremely confident about the payback.

Despite the knowledge that our competitors were also involved, we all assumed that there was enough work to go around. I also had been in the business long enough to believe that the rewards bestowed would reflect the level of Treasury’s acceptance of the work we had done, and that those consultants who came up with the approaches that were finally implemented would receive the choicest contracts. I took it as a personal challenge to create scenarios that would make it to the design-and-construct stage. My star was already rising rapidly at MAIN. Being a key player in SAMA would guarantee its acceleration, if we were successful.

During our meetings, we also openly discussed the likelihood that SAMA and the entire JECOR operation would set new precedents. It represented an innovative approach to creating lucrative work in countries that did not need to incur debts through the international banks. Iran and Iraq came immediately to mind as two additional examples of such countries. Moreover, given human nature, we felt that the leaders of such countries would likely be motivated to try to emulate Saudi Arabia. There seemed little doubt that the 1973 oil embargo—which had initially appeared to be so negative—would end up offering many unexpected gifts to the engineering and construction business, and would help to further pave the road to global empire.

I worked on that visionary phase for about eight months—although never for more than several intense days at a time—sequestered in my private conference room or in my apartment overlooking Boston Common. My staff all had other assignments and pretty much took care of themselves, although I checked in on them periodically. Over time, the secrecy around our work declined. More people became aware that something big involving Saudi Arabia was going on. Excitement swelled, rumors swirled. The vice presidents and Treasury representatives grew more open—in part, I believe, because they themselves became privy to more information as details about the ingenious scheme emerged.

Under this evolving plan, Washington wanted the Saudis to guarantee to maintain oil supplies and prices at levels that could fluctuate but that would always remain acceptable to the United States and our allies. If other countries such as Iran, Iraq, Indonesia, or Venezuela threatened embargoes, Saudi Arabia, with its vast petroleum supplies, would step in to fill the gap; simply the knowledge that they might do so would, in the long run, discourage other countries from even considering an embargo. In exchange for this guarantee, Washington would offer the House of Saud an amazingly attractive deal: a commitment to provide total and unequivocal U.S. political and—if necessary—military support, thereby ensuring their continued existence as the rulers of their country.

It was a deal the House of Saud could hardly refuse, given its geographic location, lack of military might, and general vulnerability to neighbors like Iran, Syria, Iraq, and Israel. Naturally, therefore, Washington used its advantage to impose one other critical condition, a condition that redefined the role of EHMs in the world and served as a model we would later attempt to apply in other countries, most notably in Iraq. In retrospect, I sometimes find it difficult to understand how Saudi Arabia could have accepted this condition. Certainly, most of the rest of the Arab world, OPEC, and other Islamic countries were appalled when they discovered the terms of the deal and the manner in which the royal house capitulated to Washington’s demands.

The condition was that Saudi Arabia would use its petrodollars to purchase U.S. government securities; in turn, the interest earned by these securities would be spent by the U.S. Department of the Treasury in ways that enabled Saudi Arabia to emerge from a medieval society into the modern, industrialized world. In other words, the interest compounding on billions of dollars of the kingdom’s oil income would be used to pay U.S. companies to fulfill the vision I (and presumably some of my competitors) had come up with, to convert Saudi Arabia into a modern industrial power. Our own U.S. Department of the Treasury would hire us, at Saudi expense, to build infrastructure projects and even entire cities throughout the Arabian Peninsula.

Although the Saudis reserved the right to provide input regarding the general nature of these projects, the reality was that an elite corps of foreigners (mostly infidels, in the eyes of Muslims) would determine the future appearance and economic makeup of the Arabian Peninsula. And this would occur in a kingdom founded on conservative Wahhabi principles and run according to those principles for several centuries. It seemed a huge leap of faith on their part, yet under the circumstances, and due to the political and military pressures undoubtedly brought to bear by Washington, I suspected the Saud family felt they had few alternatives.

From our perspective, the prospects for immense profits seemed limitless. It was a sweetheart deal with potential to set an amazing precedent. And to make the deal even sweeter, no one had to obtain congressional approval—a process loathed by corporations, particularly privately owned ones like Bechtel and MAIN, which prefer not to open their books or share their secrets with anyone. Thomas W. Lippman, an adjunct scholar at the Middle East Institute and a former journalist, eloquently summarizes the salient points of this deal:

The Saudis, rolling in cash, would deliver hundreds of millions of dollars to Treasury, which held on to the funds until they were needed to pay vendors or employees. This system assured that the Saudi money would be recycled back into the American economy… It also ensured that the commission’s managers could undertake whatever projects they and the Saudis agreed were useful without having to justify them to Congress.

Establishing the parameters for this historic undertaking took less time than anyone could have imagined. After that, however, we had to figure out a way to implement it. To set the process in motion, someone at the highest level of government was dispatched to Saudi Arabia—an extremely confidential mission. I never knew for sure, but I believe the envoy was Henry Kissinger.

Whoever the envoy was, his first job was to remind the royal family about what had happened in neighboring Iran when Mossadegh tried to oust British petroleum interests. Next, he would outline a plan that would be too attractive for them to turn down, in effect conveying to the Saudis that they had few alternatives. I have no doubt that they were left with the distinct impression that they could either accept our offer and thus gain assurances that we would support and protect them as rulers, or they could refuse—and go the way of Mossadegh. When the envoy returned to Washington, he brought with him the message that the Saudis would like to comply.

There was just one slight obstacle. We would have to convince key players in the Saudi government. This, we were informed, was a family matter. Saudi Arabia was not a democracy, and yet it seemed that within the House of Saud there was a need for consensus.

In 1975, I was assigned to one of those key players. I always thought of him as Prince W., although I never determined that he was actually a crown prince. My job was to persuade him that the Saudi Arabia Money-laundering Affair would benefit his country as well as him personally.

This was not as easy as it appeared at first. Prince W. professed himself a good Wahhabi and insisted that he did not want to see his country follow in the footsteps of Western commercialism. He also claimed that he understood the insidious nature of what we were proposing. We had, he said, the same objectives as the crusaders a millennium earlier: the Christianization of the Arab world. In fact, he was partially right about this. In my opinion, the difference between the crusaders and us was a matter of degree. Europe’s medieval Catholics claimed their goal was to save Muslims from purgatory; we claimed that we wanted to help the Saudis modernize. In truth, I believe the crusaders, like the corporatocracy, were primarily seeking to expand their empire.

Religious beliefs aside, Prince W. had one weakness—for beautiful blonds. It seems almost ludicrous to mention what has now become an unfair stereotype, and I should mention that Prince W. was the only man among many Saudis I have known who had this proclivity, or at least the only one who was willing to let me see it. Yet, it played a role in structuring this historic deal, and it demonstrates how far I would go to complete my mission.
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Syrian Civil War: More Blood For Oil

4/17/2016

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Citing a lack of access on the ground, the United Nations stopped regularly updating its numbers of casualties in the Syrian civil war in January 2014. Estimates put the death toll between 140,200 and 330,380, with as many as 6 million Syrians displaced, according to the U.N.

While there is no question that the Syrian government is responsible for many of the casualties resulting from its brutal crackdown, this is not just a Syrian problem.

Foreign meddling in Syria began several years before the Syrian revolt erupted.  Wikleaks released leaked US State Department cables from 2006 revealing U.S. plans to overthrow the Syrian government through instigating civil strife, and receiving these very orders straight from Tel Aviv.

The leaks reveal the United State’s partnership with nations like Saudi Arabia, Turkey, Qatar and even Egypt to use sectarianism to divide Syria through the Sunni and Shiite divide to destabilize the nation to weaken Iran and Hezbolla.  Israel is also revealed to attempt to use this crisis to expand its occupation of the Golan Heights for additional oil exploration, according to Wikileaks editor Julian Assange.
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According to major media outlets like the BBC and the Associated Press, the demonstrations that supposedly swept Syria were comprised of only hundreds of people, but additional Wikileaks cables reveal CIA involvement on the ground in Syria to instigate these very demonstrations as early as March 2011.

Just a few months into the demonstrations which now consisted of hundreds of armed protesters with CIA ties, demonstrations grew larger, armed non-Syrian rebel groups swarmed into Syria, and a severe government crackdown swept through the country to deter this foreign meddling. It became evident that the United States, United Kingdom, France, Qatar, Saudi Arabia and Turkey would be jumping on the opportunity to organize, arm and finance rebels to form the Free Syrian Army as outlined in the State

Department plans to destabilize Syria. (Just a few months ago, WikiLeaks confirmed this when it released Saudi intelligence that revealed Turkey, Qatar and Saudi Arabia had been working hand in hand to arm and finance rebels to overthrow the Syrian government since 2012.)

These foreign nations created a pact in 2012 called “The Group of Friends of the Syrian People,” a name that couldn’t be further from the truth. Their agenda was to divide and conquer in order to wreak havoc across Syria in view of overthrowing Syrian President Bashar Assad.

The true agenda to hijack Syria’s revolt quickly became evident, with talking heads inserting Syria’s alliance with Iran as a threat to the security and interests of the United States and its allies in the region. It’s no secret that Syria’s government is a major arms, oil and gas, and weapons ally of Iran and Lebanon’s resistance political group Hezbollah.

But it’s important to note the timing: This coalition and meddling in Syria came about immediately on the heels of discussions of an Iran-Iraq-Syria gas pipeline that was to be built between 2014 and 2016 from Iran’s giant South Pars field through Iraq and Syria. With a possible extension to Lebanon, it would eventually reach Europe, the target export market.

Perhaps the most accurate description of the current crisis over gas, oil and pipelines that is raging in Syriahas been described by Dmitry Minin, writing for the Strategic Cultural Foundation in May 2013:
“A battle is raging over whether pipelines will go toward Europe from east to west, from Iran and Iraq to the Mediterranean coast of Syria, or take a more northbound route from Qatar and Saudi Arabia via Syria and Turkey. Having realized that the stalled Nabucco pipeline, and indeed the entire Southern Corridor, are backed up only by Azerbaijan’s reserves and can never equal Russian supplies to Europe or thwart the construction of the South Stream, the West is in a hurry to replace them with resources from the Persian Gulf. Syria ends up being a key link in this chain, and it leans in favor of Iran and Russia; thus it was decided in the Western capitals that its regime needs to change.

Indeed, tensions were building between Russia, the U.S. and the European Union amid concerns that the European gas market would be held hostage to Russian gas giant Gazprom. The proposed Iran-Iraq-Syria gas pipeline would be essential to diversifying Europe’s energy supplies away from Russia.
Turkey is Gazprom’s second-largest customer. The entire Turkish energy security structure relies on gas from Russia and Iran. Plus, Turkey was harboring Ottoman-like ambitions of becoming a strategic crossroads for the export of Russian, Caspian-Central Asian, Iraqi and Iranian oil and even gas to Europe, assesses journalist Pepe Escobar writing for Al Jazeera.
The Guardian reported in August 2013:
“Assad refused to sign a proposed agreement with Qatar and Turkey that would run a pipeline from the latter’s North field, contiguous with Iran’s South Pars field, through Saudi Arabia, Jordan, Syria and on to Turkey, with a view to supply European markets – albeit crucially bypassing Russia. Assad’s rationale was ‘to protect the interests of [his] Russian ally, which is Europe’s top supplier of natural gas.’”

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Note the purple line which traces the proposed Qatar-Turkey natural gas pipeline and note that all of the countries highlighted in red are part of a new coalition hastily put together after Turkey finally (in exchange for NATO’s acquiescence on Erdogan’s politically-motivated war with the PKK) agreed to allow the US to fly combat missions against ISIS targets from Incirlik. Now note which country along the purple line is not highlighted in red. That’s because Bashar al-Assad didn’t support the pipeline and now we’re seeing what happens when you’re a Mid-East strongman and you decide not to support something the US and Saudi Arabia want to get done.
Knowing Syria was a critical piece in its energy strategy, Turkey attempted to persuade Syrian President Bashar Assad to reform this Iranian pipeline and to work with the proposed Qatar-Turkey pipeline, which would ultimately satisfy Turkey and the Gulf Arab nations’ quest for dominance over gas supplies, who are the United State’s allies. But after Assad refused Turkey’s proposal, Turkey and its allies became the major architects of Syria’s “civil war.”
Much of the strategy currently at play was described back in a 2008 U.S. Army-funded RAND report, “Unfolding the Future of the Long War”:

“The geographic area of proven oil reserves coincides with the power base of much of the Salafi-jihadist network. This creates a linkage between oil supplies and the long war that is not easily broken or simply characterized. … For the foreseeable future, world oil production growth and total output will be dominated by Persian Gulf resources. … The region will therefore remain a strategic priority, and this priority will interact strongly with that of prosecuting the long war.”

In this context, the report identifies the divide and conquer strategy while exploiting the Sunni-Shiite divide to protect Gulf oil and gas supplies while maintaining a Gulf Arab state dominance over oil markets.

“Divide and Rule focuses on exploiting fault lines between the various Salafi-jihadist groups to turn them against each other and dissipate their energy on internal conflicts. This strategy relies heavily on covert action, information operations (IO), unconventional warfare, and support to indigenous security forces. … the United States and its local allies could use the nationalist jihadists to launch proxy IO campaigns to discredit the transnational jihadists in the eyes of the local populace. … U.S. leaders could also choose to capitalize on the ‘Sustained Shia-Sunni Conflict’ trajectory by taking the side of the conservative Sunni regimes against Shiite empowerment movements in the Muslim world…. possibly supporting authoritative Sunni governments against a continuingly hostile Iran.”

The report notes that another option would be “to take sides in the conflict, possibly supporting authoritative Sunni governments against a continuingly hostile Iran.”

This framework crafted an interesting axis: Turkey, Qatar, Saudi Arabia, U.S., Britain and France vs. Syria, Iran and Russia.

The fountainhead of Islamic extremism that promotes and legitimizes terrorism spawns from the fanatical “Wahhabi” strain of Islam centered in Saudi Arabia. These are the Mercenaries/Rebels that the West (The U.S.) help fund to fight proxy wars to topple regimes such as Assad's regime in Syria for the petrodollar Monopoly and oil industry as well as other geopolitical agendas. If the world wants to eliminate such violent extremism, it must confront this primary host and facilitator of terrorism. ​

With the U.S., France, Britain, Qatar, Saudi Arabia and Turkey — aka, the new “Friends of Syria” coalition — publicly calling for the overthrow of Syrian President Bashar Assad between  2011 and 2012 after Assad’s refusal to sign onto the gas pipeline, the funds and arms flowing into Syria to feed the so-called “moderate” rebels were pushing Syria into a humanitarian crisis. Rebel groups were being organized left and right, many of which featured foreign fighters and many of which had allied with al-Qaida.

The Syrian government responded with a heavy hand, targeting rebel held areas and killing civilians in the process.

Since Syria is religiously diverse, the so-called “Friends of Syria” pushed sectarianism as their official “divide and conquer” strategy to oust Assad. Claiming that Alawites ruled over a majority Sunni nation, the call by the “moderate” U.S.-backed rebels became one about Sunni liberation.

Although the war is being sold to the public as a Sunni-Shiite conflict, so-called Sunni groups like ISIS,  the Syrian al-Qaida affiliate Jabhat al-Nusra (the Nusra Front) and even the “moderate” Free Syrian Army have indiscriminately targeted Syria’s Sunnis, Shiites, Christians and Jews. At the same time, these same foreign nations supported and even armed the Bahraini government, which claims to be Sunni, in its violent crackdown on the majority Shiite pro-democracy demonstrations that swept the nation.

The Syrian government army itself is of over 80 percent Sunnis, which indicates that the true agenda has been politically — not religiously — motivated.

In addition to this, the Assad family is Alawite, an Islamic sect that the media has clumped in with Shiites, though most Shiites would agree that the two are unrelated. Further, the Assad family is described as secular and running a secular nation. Counting Alawites as Shiites was simply another way to push a sectarian framework for the conflict: It allowed for the premise that the Syria-Iran alliance was based on religion, when, in fact, it was an economic relationship.

This framework carefully crafted the Syrian conflict as a Sunni revolution to liberate itself from Shiite influence that Iran was supposedly spreading to Iraq, Syria and Lebanon.

But the truth is, Syria’s Sunni community is divided, and many defected to join groups like the Free Syrian Army, ISIS and al-Qaida. And as mentioned earlier, over 80 percent of Assad’s military is Sunni.

As early as 2012, additional rebels armed and financed by Arab Gulf nations and Turkey like al-Qaida and the Muslim Brotherhood, declared all-out war against Shiites. They even threatened to attack Lebanon’s Hezbollah and Iraq’s government after they had overthrown the Assad government.

Soon after, the majority of the Muslim Brotherhood rebels became part of al-Qaida-affiliated groups. Together, they announced that they would destroy all shrines — not just those ones which hold particular importance to Shiites.

Hezbollah entered the scene in 2012 and allied itself with the Syrian government to fight al-Nusra and ISIS, which were officially being armed and financed by Qatar, Saudi Arabia and Turkey. And all the arms were actively being sold to these nations by the United States. Thus, US arms were falling into the hands of the same terror group the US claims to be fighting in its broader War on Terror.

According to reports, Hezbollah was and has been been active in preventing rebel penetration from Syria to Lebanon, “being one of the most active forces in the Syrian civil war spillover in Lebanon.” Despite this, the U.S. sanctioned both the Syrian government and Hezbollah in 2012.

Also that year, Russia and Iran sent military advisers to assist the Syrian government in quelling the terror groups, but Iranian troops were not on the ground fighting during this time.
​
What was once a secular, diverse and peaceful nation, was looking more like it was on its way to becoming the next Afghanistan; its people living under Taliban-style rule as jihadists took over more land and conquered more cities.
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Legalize Drunk Driving?

4/16/2016

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By Llewellyn H. Rockwell, Jr., November 3, 2000

[In The Year 2000] Clinton signed a bill passed by Congress that orders the states to adopt new, more onerous drunk-driving standards or face a loss of highway funds. That’s right: the old highway extortion trick. Sure enough, states are already working to pass new, tighter laws against Driving Under the Influence, responding as expected to the feds’ ransom note.

Now the feds declare that a blood-alcohol level of 0.08 percent and above is criminal and must be severely punished. The National Restaurant Association is exactly right that this is absurdly low. The overwhelming majority of accidents related to drunk driving involve repeat offenders with blood-alcohol levels twice that high. If a standard of 0.1 doesn’t deter them, then a lower one won’t either.

But there’s a more fundamental point. What precisely is being criminalized? Not bad driving. Not destruction of property. Not the taking of human life or reckless endangerment. The crime is having the wrong substance in your blood. Yet it is possible, in fact, to have this substance in your blood, even while driving, and not commit anything like what has been traditionally called a crime.

What have we done by permitting government to criminalize the content of our blood instead of actions themselves? We have given it power to make the application of the law arbitrary, capricious, and contingent on the judgment of cops and cop technicians. Indeed, without the government’s "Breathalyzer," there is no way to tell for sure if we are breaking the law.

Sure, we can do informal calculations in our head, based on our weight and the amount of alcohol we have had over some period of time. But at best these will be estimates. We have to wait for the government to administer a test to tell us whether or not we are criminals. That’s not the way law is supposed to work. Indeed, this is a form of tyranny.

Now, the immediate response goes this way: drunk driving has to be illegal because the probability of causing an accident rises dramatically when you drink. The answer is just as simple: government in a free society should not deal in probabilities. The law should deal in actions and actions alone, and only insofar as they damage person or property. Probabilities are something for insurance companies to assess on a competitive and voluntary basis.

This is why the campaign against "racial profiling" has intuitive plausibility to many people: surely a person shouldn’t be hounded solely because some demographic groups have higher crime rates than others. Government should be preventing and punishing crimes themselves, not probabilities and propensities. Neither, then, should we have driver profiling, which assumes that just because a person has quaffed a few he is automatically a danger.

In fact, driver profiling is worse than racial profiling, because the latter only implies that the police are more watchful, not that they criminalize race itself. Despite the propaganda, what’s being criminalized in the case of drunk driving is not the probability that a person driving will get into an accident but the fact of the blood-alcohol content itself. A drunk driver is humiliated and destroyed even when he hasn’t done any harm.

Of course, enforcement is a serious problem. A sizeable number of people leaving a bar or a restaurant would probably qualify as DUI. But there is no way for the police to know unless they are tipped off by a swerving car or reckless driving in general. But the question becomes: why not ticket the swerving or recklessness and leave the alcohol out of it? Why indeed.

To underscore the fact that it is some level of drinking that is being criminalized, government sets up these outrageous, civil-liberties-violating barricades that stop people to check their blood — even when they have done nothing at all. This is a gross attack on liberty that implies that the government has and should have total control over us, extending even to the testing of intimate biological facts. But somehow we put up with it because we have conceded the first assumption that government ought to punish us for the content of our blood and not just our actions.

There are many factors that cause a person to drive poorly. You may have sore muscles after a weight-lifting session and have slow reactions. You could be sleepy. You could be in a bad mood, or angry after a fight with your spouse. Should the government be allowed to administer anger tests, tiredness tests, or soreness tests? That is the very next step, and don’t be surprised when Congress starts to examine this question.

Already, there’s a move on to prohibit cell phone use while driving. Such an absurdity follows from the idea that government should make judgments about what we are allegedly likely to do.

What’s more, some people drive more safely after a few drinks, precisely because they know their reaction time has been slowed and they must pay more attention to safety. We all know drunks who have an amazing ability to drive perfectly after being liquored up. They should be liberated from the force of the law, and only punished if they actually do something wrong.

We need to put a stop to this whole trend now. Drunk driving should be legalized. And please don’t write me to say: "I am offended by your insensitivity because my mother was killed by a drunk driver." Any person responsible for killing someone else is guilty of manslaughter or murder and should be punished accordingly. But it is perverse to punish a murderer not because of his crime but because of some biological consideration, e.g. he has red hair.

Bank robbers may tend to wear masks, but the crime they commit has nothing to do with the mask. In the same way, drunk drivers cause accidents but so do sober drivers, and many drunk drivers cause no accidents at all. The law should focus on violations of person and property, not scientific oddities like blood content.

There’s a final point against Clinton’s drunk-driving bill. It is a violation of states rights. Not only is there is no warrant in the Constitution for the federal government to legislate blood-alcohol content — the 10th amendment should prevent it from doing so. The question of drunk driving should first be returned to the states, and then each state should liberate drunk drivers from the force of the law.

Llewellyn H. Rockwell, Jr. [send him mail], former publications editor to Ludwig von Mises and congressional chief of staff to Ron Paul, is founder and chairman of the Mises Institute, executor for the estate of Murray N. Rothbard, and editor of LewRockwell.com. See his books.

More At:The Best of Lew Rockwell
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Kentucky Study Indicates Cannabis Reduces Alcoholic Wet-Brain

4/2/2016

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A new study published by Pharmacology Biochemistry and Behavior reports that delivery of the non-psychoactive cannabinoid compound cannabidiol (CBD) through the skin can reduce alcohol-related damage to the brain.

The study, which was given the catchy title “Transdermal delivery of cannabidiol attenuates binge alcohol-induced neurodegeneration in a rodent model of an alcohol use disorder,” was conducted at the University of Kentucky’s Department of Pharmaceutical Sciences.

Researchers administered CBD to lab rats in two forms – one as a gel, the other as an injection. In the first experiment, gels with the highest percentage of CBD administered (5 percent) resulted in a 48.8 percent reduction in entorhinal cortex neurodegeneration.

In the second experiment, a 2.5 percent CBD gel formulation applied to the skin was compared to CBD injections. The study found that the two methods were similarly effective in protecting the brain – injections resulted in a 50.6 percent reduction while the gel reduced damage by 56.1 percent.
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Researchers claim the results demonstrate “the feasibility of using CBD transdermal delivery systems for the treatment of alcohol induced neurodegeneration.” Meaning that, it is possible to reduce the damage done by drinking too much alcohol simply by rubbing a CBD gel on your skin.
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Speaker Stumbo In Critical Condition After Ingesting Ant Poison

4/1/2016

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April Fools!!!

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seriously though aspartame was developed in 1965 as ant poison
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Kentucky's Nuclear Disposal Site Contaminating Ground Soil & Down Stream Watershed 

4/1/2016

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Nuclear burial trenches at the Maxey Flats radioactive waste burial site cover an area of about 20 acres, and are located on a plateau, about 300 to 400 feet above surrounding valleys.

The primary pathway of water entry into the waste burial trenches is through the trench caps but major increases in water level have occurred in an “experimental" trench by subsurface flow.

Radionuclide concentrations in surface soil at Maxey Flats are comparable to concentrations resulting from other normal fallout zones in other areas of high rainfall.

The areal distribution of radionuclides at Maxey Flats may have been influenced by surface runoff, deposition from the deposits in addition to subsurface water flow and the actions of burrowing animals or deep-rooted trees.

Other waste radionuclides were in streamwater and stream sediment, and may have been transported with overland runoff from the surface of the burial site. (USGS)

Ground-water-level and precipitation data were collected from 112 wells and 1 rain gage at the Maxey Flats low-level radioactive waste disposal site during October 1988-September 2000. Data were collected on a semi-annual basis from 62  sump wells.  

Since 2002, Kentucky Department for Environmental Protection staff have inspected and made repairs to the current cap, as well as monitored and sampled the surrounding area to ensure the safety of the community. 

In January 2013 a engeneering firm was selected to install "the final cap" and ask Kentuckians trust the new capping system which should be effective in keeping the land downstream safe suggesting national studies indicate the plastic used in the new final cap will last anywhere from 200 to 500 years.

Today, the 55-acre disposal area is securely fenced off from the public and marked “restricted.” Buried beneath the geomembrane liner is approximately 4.7 million cubic feet of radioactive and other hazardous waste. All of the existing sump monitoring will be abandoned before the final cap is installed. ​
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Gary Johnson Dominates Kentucky Straw Poll

3/19/2016

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Libertarian Party of Kentucky Straw Poll
Results:
Johnson with 14,
McAfee with 2.
​ Feldman, Kerbel, Perry, and Petersen tie with 1.

This poll was conducted among voting members at The 2016 LPKY Convention.
​Although this test population is small, nearly all will be delegates or alternates at National Convention
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Kentucky's Socialized Phone Fund In Jeopardy, Commission Levies 'Surcharge' Fee's For All

3/16/2016

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In 1996 Universal Service Funds were created to make telephone service available to low-income Kentuckians.

“It's been great for me,” said Darryl Ellery, who has had his "Lifeline phone" for about six months and doesn't go anywhere without. “They don't have phones out on phone booths no more, so you need a phone just in case you get in trouble out here. You're going to have to have somewhere you can get emergency contact,” Ellery said.

Nothing is really free so funding for this program has rapidly depleted over the decades, not surprising more than 100,000 Kentuckians are now in danger of losing their “free" cell phone service.

The Kentucky Public Service Commission announced a temporary edict which will affect all Kentuckians phone bills in the state with a wireless or landline. 

“The surcharge for the Universal Service Fund, which funds the Lifeline program, is going up by six cents, from eight cents to 14 cents,” said PSC spokesman Andrew Melnykovyc. Who said most phone providers supported the increase to keep the program stable, but many customers are against it.

“Six cents really isn't that much,” Melnykovych said.  “They have no sympathy for the folks that are reliant on that program on that phone service.”

Are these “surcharges” really just taxes masquerading as fee’s? Could This be Socialism?

The PCS is still taking public comments to come up with a sustainable solution for the free-phone funding handouts.

​ If you'd like to share your thoughts, please click here.
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Libertarian Party of Kentucky Convention March 18th-20th

3/14/2016

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The Libertarian Party of Kentucky's Annual convention is right around the corner. In the previous newsletter, We told you the dates for the convention, but we were still ironing out some specifics. Now we can tell you the details.The LPKY has a convention every year, in order to do specific business, like electing officers for the party and to make any amendments to the LPKY State Party Constitution. The conventions are also a good opportunity to meet those from around the state who are working to spread liberty, just like you are.
Unlike the conventions held by many other organizations, the purpose of the convention is not a fund-raiser. We do our very best to "just break even" on the convention; keeping costs low and providing extras once the core convention costs are covered. Our goal is your participation. That being said, the cost to attend the convention is $40. With discounts for those who have contributed to the party already. The $40 also includes your annual dues to the party. If you've already paid your dues, then it's only $10. If you are a monthly contributor, or would like to become a monthly contributor, then it's free. 

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Libertarian Party Presidential Candidates or campaign representatives are encouraged to attend the LPKY Social Hour.
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Scan For Invitation 

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LIBERTARIAN PARTY OF KENTUCKY SEEKING VOLUNTEERS AND OFFICER CANDIDATES IN CENTRAL KENTUCKY

3/9/2016

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LPKY6 Convention March 10th!!!

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Click For Invitation
All officer positions are up for grabs, requirements are simply that you live in The Commonwealth, be registered to vote Libertarian and become a Full Member of LPKY with in a reasonable period of time after convention. LPKY is a volunteer organization and is driven by its mission & members, so, if you've been curious about getting involved but haven't know quite how to do so, please, join us at Common Grounds in Lexington March 10th at 6pm 
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