Thursday, January 21, 2016

Dangers of Global Wealth Inequality

A Credit Swisse Report says that the top 0.7% of the world’s population, those with net wealth of $1 million or more, about 34 million people, own 45% of all global wealth.  It says there are 123,800 Ultra High Net Worth individuals worldwide who have a net worth of more than $50 million.  Fortune summarized the report. 

The Guardian says that there are 199,235 Ultra High Net Worth individuals, whose combined net worth is around $27.7 trillion, about 40% of the world’s GDP. 

This increasing concentration of wealth may have implications for financial liquidity.  To be liquid, markets need buyers and sellers, and this means there needs to be some diversity.  You need people who are looking for different things from their investments.  As you narrow the group making investments, you narrow their interests.  At some point you might end up with a small group of people who all want to sell.  The people who would in the past have been  buyers, now would not have enough resources to buy the huge amounts the superrich want to sell.  The result might be a violent dive in the price of the assests in disfavor, whether they are stocks, bonds, or real estate.  The same would be true if all the superrich wanted to buy some particular asset.  The result would be at best increasing volatility, and at worst market crashes.  These crashes might have less effect on the superrich than on ordinary people, because the superrich would probably be diversified.  For example, a big loss in their real estate investments would be cushioned by their investments in the stock and bond markets, or the art market, etc.  However, for ordinary people a big loss in the value of their home might be devastating, because they would not have other big, valuable assets to cushion the loss of their home value. 

This is more or less what happened in the 2008 subprime mortgage crisis. 

The other side of that crisis was what happened to the banks.  A few banks then and now were humongous, dominating the market for complicated financial instruments, like bonds made up of home mortgages.  Having only a few huge banks is like having a small group of superrich people, the chances of some event affecting all of the players becomes larger as the group of players becomes smaller.  Dodd-Frank and the Volker Rule were supposed to help remedy this, but so appears to have done little, despite (or because of) the loud protests of the big banks against any restrictions. 


Thursday, January 14, 2016

Obama's State of the Union

I think Obama has done a good job as President compared to many of his predecessors, especially George W. Bush, one of the worst Presidents in modern history.  Bush and Cheney slept while New York City and Washington were attacked.  Then they retaliated against the wrong country.  They created Guantanamo, America’s version of the Soviet gulags, located in another country, because it was such a horrible thing that we didn’t want it in the continental US, just as Hitler did not want Auschwitz within the borders of Germany.  Under Bush and Cheney, America descended into a moral abyss.  It fell to the level of the terrorists who attacked it.  Obama has not done anything nearly as bad as that. 

ObamaCare was not a complete success.  Single-payer Medicare would have been preferable to the messy, hybrid, expensive system we got from the process, but it is better than nothing, which is what we had before.  He has not gotten rid of Guantanamo, but at least he says he wants to and will try to do so before the end of his term. 

His supposed admission that his one big failure was not restoring a civil dialogue between the Republicans and Democrats, is not really an acknowledgement of failure, it is just a nice sounding, back-handed way of saying, “I still can’t get along with those Republicans; they are just as nasty as ever.”  It was more an insult than an admission of failure. 

On the plus side, however, he tried to get us out of failed wars in Iraq and Afghanistan.  He did not entirely succeed in this, in large part because he inherited a horribly flawed situation from the previous administration.   Bush started the destabilization of the Middle East, but Obama may have abetted it by his encouragement of the Arab Spring’s desire to throw out all the old leadership of the Middle East.  Bush removed the foundation of Middle East stability, and Obama pushed over the unstable structure Bush left behind. 

I believe that Obama has done the right thing regarding Syria by not getting us deeper into that civil war.  The Syrian destruction of most of its chemical weapons was a plus for the conflict.  We would probably be hearing many more gruesome stories about chemical attacks, surpassing the stories of starvation and mutilation resulting from more conventional warfare.  Syria only presents a multitude of bad choices for the US, from want to do about Assad, to what rebel groups to support.  There is no one who can replace Assad and end the war, and there is no rebel group who will be able to put an end to the civil war militarily, without massive help and massive casualties on the side of whoever helps them.  The Republicans are anxious to see Americans die in Syria; I am not. 

On the economy, Obama has so far been pretty much a success.  He has restored employment, and under him the economy and the stock market have soared, compared with the great recession that Bush left for him.  He still has a year left for the economy to crater, but the gains under his Presidency have been so enormous, that even a moderate drop would still leave his administration with a very positive result.  He has been more willing to take on entrenched business and financial interests, but under his Presidency, consolidation of big business and banks has continued, and although he talks a good game against income inequality, it has increased on his watch.  Nevertheless, things are much better than under Bush, and what he has done is vastly superior to what the nay-saying Republicans have advocated. 

On foreign policy, the Republicans chafe at his unwillingness to kill everybody in sight, calling that weakness.  But I believe that it shows strength.  People may be more willing to challenge the US because they do not fear that Obama will nuke them for a small provocation, but they also see him as someone with whom they can negotiate.  His Iran nuclear deal is far superior to a war with Iran.  He showed strength in resisting Republican and Israeli screams for Iranian blood, based on some sort of extreme racial, religious and ethnic hatred.  In the long run, Obama’s approach is more likely to prevent a nuclear arms race or war in the Middle East  than a military attack. 

Reestablishing relations with Cuba was another positive step.  One reason I retired and left the Foreign Service was because of the Helms-Burton sanctions on Cuba.  An Italian complained to me that his daughter could not get a visa to visit Disneyworld because he worked for the Italian phone company and they had some kind a connection to Cuba.  It was too much like the German refusal to issue a visa to a Jewish child in order to prevent its mother from leaving Italy in one of the “Winds of War” books.  I don’t approve of punishing children for the sins of their parents.  The US bitterness and retaliation against Cuba has gone on too long.  It was time to end it; it was time years ago, but Obama finally did it. 

I am not a fan of free immigration.  I issued visas for a tour in Sao Paulo, Brazil, and felt bad every time I denied a visa, knowing that a Mexican could just walk across the border if he or she were denied a visa, but that it was not so easy for a Brazilian to do so.  Everyone looked the other way at illegal immigration for years.  Business benefitted because it kept salaries low, and liberals looked the other way because they wanted to see poor foreigners help themselves by coming to America.  Our immigration laws have been like Prohibition – strict laws on the books that are ignored in everyday life.  The law should be changed so that it can and will be enforced, whatever it turns our to be, strict or liberal.  Meanwhile, I don’t think there is much of a problem denying anyone who is a foreigner a visa for any reason; non-citizen, non-residents outside the US have no Constitutional protections, and keeping out anyone that poses even the least risk to the country is legal; we only need to decide what level that “least risk” should be. 


Monday, January 11, 2016

Jewish Financiers

There is so much talk in financial circles about the Federal Reserve raising interest rates that it has piqued my interest in the role of Jews in the US.  There have been only Jewish chairmen of the Fed since Paul Volker in the Carter administration. Prior to Volker there had been only one Jewish Fed chairman, who held the post at the height of the great depression. 

My concern is that the Jewish dominated Fed has helped Jewish bankers, financiers, and businessmen in a preferential manner.  This may not have been the result of some great scheme or cabal, like that envisioned by Henry Ford, but simply the result of a convergence of interests, formed at dinners, social occasions and business meetings among Jews over the years.  The results of this convergence of interests may not have been illegal insider trading, but they may have disproportionately benefited Jews over other parts of American society. It was a form of insider trading that was too vague and amorphous to be illegal, but one that affected how trillions of dollars were invested.  

Jews have been involved in financial businesses since before America was a country, and they have been active in financial circles since before the founding of the country.  But they did not play the huge role that they do today until after World War II.  The Holocaust drove many wealthy Jews out of Europe to America, where they resumed the financial activities in which they had excelled in Europe.  Today Jews not only play a dominant role in the Fed, but in most financial activities, particularly on Wall Street.  

Most wealthy financiers would not win any prizes for being great humanitarians.  They tend to be greedy, selfish, and often dishonest.  If they don't break the law, they go right up to the legal limit, and today they pay lobbyists to change the laws to let them do what they want to do.  Most of them leave a lot of their riches to charitable and cultural foundations as they approach death to try to atone for the evil they did in amassing their fortunes.  But that doesn't make the evil they did while amassing their fortunes any less evil.  The Protestant Rockefellers, Carneigies, Astors, Vanderbilts, Hearsts and their cohorts all fall into this same category, along with many present day Jews and Gentiles.  However, this cohort contains considerably more Jews in the top 1% than their 2% of the population would represent.  Jews represent nearly half of the richest of the rich in America.  

Jews believe they are smarter at doing business and manipulating markets than other people, so that if business and the markets are very complicated, Jews are likely to win and do better than their Gentile competition.  Thus, if interest rates are either very high or very low, Jews are likely to do better.  Many Gentiles would be happy just putting their savings into insured savings accounts and earning some interest, but if interest rates are less than one percent, that is not an option.  When rates are high, you have to be very clever about borrowing, or have money in hand, so that you don't have to borrow, again favoring many Jews.  Thus, Jews have disproportionately benefitted from the global financial turmoil, and from the complicated financial instruments and transactions that have been developed in recent years.  

NYT article on rich not paying taxes.

As described in an article in The New York Times on Wednesday, tax rates on America’s 400 wealthiest taxpayers fell sharply from the late 1990s through 2012, when their average effective income tax rate fell to 16.7 percent from 26.4 percent.  Of the few names specifically mentioned in the article, most were Jews, including Loeb, Simons, and Soros.    

http://www.nytimes.com/2015/12/30/business/economy/for-the-wealthiest-private-tax-system-saves-them-billions.html?_r=0

Tax rates rose for wealthy last year

Data released by the I.R.S. on Wednesday shows that tax rates on the income of America’s 400 wealthiest taxpayers rose sharply to 22.9 percent in 2013, erasing a majority of the last two decades’ decline in their effective tax rate, although 22.9% is still less than the old 26.4%.  They are all much lower than the maximum 39.6% tax rate which you would expect the wealthiest people to pay, even accounting for the lower tax rate they would pay on the first few thousand dollars they earn.  

http://www.nytimes.com/2015/12/31/upshot/thanks-obama-highest-earners-tax-rates-rose-sharply-in-2013.html

Monday, January 04, 2016

Recent MTCR News Items

Since I worked on the creation of the Missile Technology Control Regime (MTCR) back in the 1980s, I'm interested to see that it is still going.  Here are some recent news articles about it collected by Google Alert.  Most of them deal with India.  


No Decision Yet on India's MTCR Membership Application





Turkey and the Kurds

On CNN’s Fareed Zakaria, Anne Marie Slaughter picked the Turkey-Kurd issue as one of the most important for 2016, and I agree with her.  We have become increasingly dependent on the Kurds in the most volatile parts of the Middle East in which we are involved – Syria, Iraq, and Iran – and now the conflict is boiling over into Turkey.

Turkey used to be a reliable ally, a secular Muslim country with a competent government.  Now it is becoming increasingly sectarian, and the government is becoming increasingly problematic.  One of the main issues for the government is the irredentism of the Kurds in Turkey, who want to form a greater Kurdistan with their Kurdish brothers in Iraq, Syria, and Iran.  Years ago, Turkey got the West to agree to characterize the Kurdish rebels in Turkey as terrorists.  So, while the US is primarily worried about ISIS terrorists, the Turks are mainly worried about the Kurdish terrorists.  When we ask the Turks for cooperation against terrorists, we are thinking, “Let’s go kill some ISIS rebels,” and the Turks are thinking, “Let’s go kill some Kurdish rebels.”  Meanwhile the US is supporting the Kurds in Iraq and Syria, who have been the main line of defense against ISIS. 

Turkey sees the Kurds as a threat to its very existence; the Kurds would cut off a chunk of Turkey and incorporate it into greater Kurdistan.  Where does the US come down?  On the side of the Kurds who are fighting with us in Iraq, or with the Turks who have been NATO allies for many years. 

If we lose Turkey as a NATO ally, we face big problems in central Europe.  Turkey controls the Bosporus.  Without access to the Black Sea, we have real problems confronting Russia’s recent take over of Crimea, as well access in general to that part of the world.  I would think the US Navy would really want Turkey on our side.  In addition Turkish air bases give American air power better access to that unstable part of the world.  We would miss them. 

But if we don’t support the Kurds, what happens in Iraq and Syria?  We have to balance our interests there against our interests in other parts of the world, including Russia and Ukraine.  Plus, we have to worry about where Turkey is going.  Is Erdogan a passing phase for Turkey, or does he represent a long-term turn toward a less Western, more Muslim state?  We don’t want our opposition to push Turkey away toward a more religious Muslim orientation. 




Wednesday, December 23, 2015

Regime Change and Assassination Nation

This Wall Street Journal article discusses the intraparty dispute that has broker out within both the Republican and Democratic parties over the role of “regime change” in US foreign policy.  Against regime change are Republicans Donald Trump, Rand Paul and Ted Cruz, joined by Democrat Bernie Sanders.  Hillary Clinton is for regime change, since she oversaw it in Egypt and Libya, although she says she argued for more gradual change in Egypt but was overruled by others in the Obama administration.  Her interventionism is echoed by Marco Rubio.   

I am disappointed that the US has become “assassination nation,” beginning perhaps after World War II when the CIA was formed.  But it was relatively rare until the Bush and Obama administrations.  Bush just liked killing Muslims, mainly in Iraq and Afghanistan.  With drones Obama now can kill anybody anywhere, and he often does.  Assassination by drone is probably better than the old fashioned way which often involved many collateral casualties, even in the case of bin Laden. 

For me, however, it goes against the standard set by leading men in the old Western movies, who did not shoot their enemies in the back.  Attacking individuals secretly from the sky seems cowardly, even if it may be good for American security.  You can argue that terrorists have no right to any kind of fair treatment, but when the US abandons fairness and justice, it sets a bad example for the rest of the world. 




Tuesday, December 08, 2015

Trump on Visas


As a one-time visa officer, I am appalled at the misinformation about visas. 

 First, President Obama said the wife of the San Bernardino shooting couple had come to the US under a visa waiver program, when she had come under at fiancée K-1 visa. That was probably just bad staff work, but for a major address, there should have been better fact checking. Apparently, the State Department has said it will review the K-1 visa program, although a miniscule number of K visas are issued compared to temporary visas and even other types of immigrant visas. It is just trying to make Obama look less stupid that he did Sunday night. State will also review issuance procedures for other types of visas that are more relevant than fiancée visas. 

 The main problem with all visas is the lack of good intelligence about who is a problem and who is not. The CIA and FBI can’t know what every person in the world harbors in his heart. The only absolutely safe thing to do would be to stop issuing any visas and stop allowing any foreigners to enter the US. There are probably a significant number of Americans who would support such a proposition, despite its disastrous effect on the US economy and the US reputation in the world. But it would not be prohibited by the Constitution. No foreigner has a Constitutional right to enter the US. American citizens do have such a right, but they don’t need a visa, just a passport. 

 Trump’s proposal stops short of an across the board visa denial and would deny visas only to Muslims for a limited time, until as he said, “we can figure out what is going on.” There has been outrage among various people, many of whom should know better, saying this is unconstitutional because it discriminates against a religion. There is no Constitutional protection for visa applicants. By their reasoning, if we denied a visa to Abu Bakr al-Baghdadi, the leader of ISIS, he would be entitled to appeal the visa denial all the way to the US Supreme Court. That is ridiculous. I know Joe Scarborough likes to go the mosque to pray, but he should not be so generous to ISIS terrorists. 

Donald Trump’s proposal may not be the best solution to the terrorist threat, but it’s not illegal, and over the years, the US has had many very discriminatory visa programs. When I was issuing visas, the big concern was the Communist threat; so, we denied visas to Communists. That doesn’t mean that we were engaged in some McCarthy-ite campaign against Americans who had some vague Communist connection. We just didn’t what people who might foment some kind of trouble once they entered the United States on a visa. Americans in America have Constitutional protection of free speech, but a Communist living in Moscow does not, although Joe Scarborough thinks he should have. Joe thinks he has a right to come to America and work to overthrow the US government. Or that a foreign Muslim has a Constitutional right to come to America and kill people, because he is innocent until proven guilty under the Fifth Amendment. I don’t agree. American citizens are protected by the Fifth Amendment; al-Baghdadi is not.

Friday, December 04, 2015

Star Wars and Me

I was pleasantly surprised to find myself quoted in one of the latest “Moments in Diplomatic History” published online by the Association for Diplomatic Studies and Training (ADST). 

While working in the Arms Control and Disarmament Agency (ACDA) during the Reagan Administration my main responsibility was to work on space arms control issues.  About halfway through my assignment, President Reagan announced the Strategic Defense Initiative (SDI) called “Star Wars.”  As you can see from the ADST article, the announcement came as a surprise to almost everyone in the foreign affairs and defense community of the government.  It was at least partly inspired by private conversations between Reagan and physicist Edward Teller, the father of the hydrogen bomb. 

One of my jobs at ACDA was to write an “Arms Control Impact Statement” on space arms control.  Reagan’s Star Wars announcement threw a monkey wrench into that statement, since it proposed violating at least two arms control agreements, the Anti-ballistic Missile Treaty and the Treaty on the Peaceful Uses of Outer Space.  What made it even worse was that the statement had to be approved by the Defense Department, which meant Richard Perle, who was Assistant Secretary of Defense for International Security Policy. 

Perle was opposed to almost any arms control agreement.  I have long believed the urban myth that at Reykjavik, after Reagan and Gorbachev had agreed to mutually eliminate all land-based intercontinental ballistic missiles (ICBNs), Perle kept Reagan up all night talking him into rejecting the deal the next day.  This ADST note sheds some light on that issue, which may be mildly favorable to Perle.  It says that in return for eliminating all these missiles, Gorbachev wanted Reagan to drop the SDI program, and Reagan was unwilling to do that, because he liked the SDI program so much.  However, the article also says that after the tentative Reagan-Gorbachev agreement, Richard Perle and General Robert Linhard hauled Reagan into a bathroom and told him “it was an impractical thing to do, especially at a time when the Administration was trying to convince Congress to fund a new generation of land-based missiles, the MX.”  So, maybe there is some truth to the urban myth about Perle. 

In any case, Perle was going to make it very difficult to say anything bad about the arms control implications of the SDI.  I think that after a number of tries to get Defense Department clearance, the statement was so watered down that it hardly said anything. 

While I was working on this issue at ACDA, I attended the only National Security Council meeting that I ever attended.  It was on SDI, and I went as the back bench support for the main ACDA representative.  I don’t remember exactly what was discussed, but I think NSC deputy Robert McFarlane chaired the meeting, and one of the main speakers was General James Abrahamson, who was famous for being the officer who oversaw the F-16 development program for the Pentagon, one of the most successful aircraft ever developed.  People hoped he could do the same thing for SDI, but even he couldn’t do it. 




Wednesday, November 18, 2015

Veneration of Veterans

I thought this op-ed in the Washington Post was right on the money.  A lot of this current veneration of veterans is just for show, to make the people who express it feel better, not to help the veterans.  Most businesses that make a show of hiring veterans do it as publicity to win customers, rather than as a service to veterans.  Colorado claims to be veteran friendly, but seeing what is happening with the VA hospital here, Senators Gardner and Bennet and Governor Hickenlooper would hardly be less supportive of veterans than if they went around and punched each veteran in the nose. 

Here’s my comment on the Washington Post op-ed by Will Bardenwerper:


If you have to choose between the homecoming for Iran & Afghanistan vets of sham love and support and the homecoming for Vietnam vets of hostility, I would choose the former.  But you can't expect too much.  The 1946 movie "The Best Years of Our Lives" illustrated the shallowness of public support for even veterans of much venerated World War II.  If you choose to fight for your country, that probably has to be reward enough.  Others should be nice, but you probably have to content yourself with believing that virtue is its own reward.  Perhaps Vietnam vets (like me) can take some solace in the fact that Vietnam has become a functioning member of the community of nations while Iraq has become a snake pit of anti-American hatred and hostility.  

Tuesday, October 13, 2015

Turkey and the Kurds

The US has to decide what course to take regarding Turkey as the recent suicide attacks illustrate the growing instability of the country.  The main issue facing Turkey is how to handle the Kurds, both the ethnic minority inside Turkey, and their Kurdish brethren in Syria, Iraq and Iran.  Turkey has for years declared the Kurdistan Workers Party (PKK) a terrorist group, and the US and NATO have also listed it as a terrorist group.  Currently, however, the Kurds in Iraq and Syria are America’s best allies in fighting ISIS.  Can the US support the Kurds in those countries while acquiescing in Turkey’s opposition to them in Turkey, and probably across the border, too?  The Turkish air force has been suspected of striking the Kurds while it was supposedly supporting US efforts against ISIS in Syria. 

If it were not for Turkey, the US could support the creation of a greater Kurdistan consisting of the Kurdish parts of Syria and Iraq.  We would probably be happy if the Kurds tried to annex part of Iran, if we could avoid getting involved.  However, we are involved in Turkey, which is a NATO member.  Turkey would not be happy giving up a significant amount of its territory to a greater Kurdistan. 

Adding to the problem for the US is the decline of the Turkish government.  It has become more religious, and President Erdogan has become more authoritarian, producing unhappiness among the Turkish people.  His party no longer holds a political majority, and the country is facing new elections as he tries to get a majority.  Thus, Turkey faces internal instability and destabilizing pressure from outside.  The US cannot easily abandon Turkey, a longtime NATO ally, especially when we need Turkey’s support in the battle against ISIS just across the border. 


The US could  lean heavily on the Kurds in Syria and Iraq to reign in their brothers in Turkey.  We could offer more and more military support, if they keep the Kurds in Turkey from making trouble.  We could even wink and imply that if they behave today, we might look the other way if they try to form a greater Kurdistan later.  Meanwhile, we should work with the Turkish government to calm the situation there, to tone down its campaign against the Turkish Kurds.  But Erdogan probably sees the Kurds as the greatest threat to his power, and the recent suicide bombings, with whispers of Turkish government complicity, illustrate the problems with that course of action.  

Friday, October 09, 2015

Kunduz Hospital Bombing

The shelling or bombing of the Doctors without Borders hospital in Kunduz, Afghanistan, reminds me of my time in an artillery battery in Vietnam.  In general we only fired at targets that had been precleared by someone in our chain of command, or we fired for forward observers who were engaged with the enemy.  In a few cases, working with our quad-50 machine gun crew, we would have to seek clearance to fire at someone who we thought was sneaking around our perimeter, just in case it was a South Vietnamese unit wandering around. 

We had a number of no-fire areas marked on our maps and charts, indicating the locations of towns and bases.  I don’t think we ever fired into one of these no-fire zones.  It would have required all kinds of special clearances. 

From the discussion it sounds as if the question in Kunduz is whether the Afghan or US forces were taking fire from the hospital.  Even if they were taking fire from the hospital, would that warrant calling in an air strike on it?  In Vietnam there was supposedly a pretty rigorous process for clearing a fire mission on a target that was not engaged in actual combat.  American liaison officers checked with Vietnamese contacts about whether there were any civilians or friendly troops in the area. 

The situation would have been complicated in Kunduz because the city had been friendly until the Taliban takeover.  The entire city would have been a no-fire area, and there would have been to reason to fire into it.  With the Taliban attack, the whole city would still be considered a no-fire area because there would be civilians everywhere.  However, if friendly troops were taking heavy fire, there would have been a debate about whether it was necessary to accept “collateral damage” in order to neutralize the enemy.  It would seem that a decision of that nature should have been made pretty high up. 

Doctors without Borders claims that no one was firing from the hospital.  In that case, there seems no justification for attacking it.  However, if they are wrong and there was firing, then maybe there was justification, but Doctors without Borders legitimately would want to know who decided that they were expendable.  I guess that is what the military review will try to determine.  I am inclined to give our troops the benefit of the doubt in the fog of war, but screw-up do happen. 


In Vietnam one night someone came up on our radio channel asking if we were firing at certain coordinates.  We were not, but we could hear him asking other batteries if they were firing there.  Finally one battery answered and said that they had just finished a “battery three-by-three” on that target.  The stranger on the net said that it was a small town, which was now destroyed.  A “battery three-by-three” means that an entire artillery battery, probably four large or six small guns, fired nine volleys in the shape of a box around the target.  Obviously something went wrong in the clearance process for that fire mission. 

Thursday, October 08, 2015

Attempts to Sell Radioactive Materials to Terrorists

The reports that someone in Moldova was going to see radioactive material to terrorists to make a dirty bomb is not to alarming.  Offers such as this happen frequently in the criminal underworld.  Radioactive materials, such as cesium are fairly available in small quantities from sources such as old hospital radiation therapy machines.  In Brazil about 30 years ago, such a machine was broken open in a junkyard by curious workers who ended up polluting and poisoning a good part of the city of Goiania.  When I was in Poland, there were frequent rumors of people with radioactive materials in Ukraine or Moldova who were willing to sell. In most of these cases the sellers had very little material, and probably had access to little more, usually just mishandled medical or scientific samples. 

Here are some examples of earlier cases. 




Wednesday, September 30, 2015

Bad Memories of a Government Shutdown

It looks like we will avoid a government shutdown tomorrow, but one still hangs over us before the end of the year. 

The 1990s government shutdown broke faith with the American people, and particularly with me as a government employee, and I have not forgiven the Republicans for bringing it on, although the Democrats were not guiltless.  Nevertheless, as a result of the shutdown, I am disposed never again to vote for a Republican, unless he is clearly the best qualified of the candidates in any election, local or nation. 

As a Foreign Service officer, I was sent to the American Embassy in Warsaw, Poland, to administer a science cooperation agreement, the Maria Sklodowska Curie Fund, that was signed before I arrived, but that was to run for a total of five years, which would have been for four years after I arrived for my three year assignment in Warsaw.  It should have spanned my whole tour of duty.  When I arrived the fund for the agreement, which was financed by matching grants from the US and Poland, had about $4 million in the bank.  My predecessor had spent very little of it on cooperative projects.  Most of the money that had been spent had gone for meetings of administrators in the US and Warsaw.  I undertook to spend almost all of the money we had in the bank by funding projects, which we did. 

After we had funded our first round of projects, the Republicans cut off the next year’s funding.  Although there was an international agreement obligating both sides to contribute for five years, the US invoked an escape clause that had been inserted for the Poles, in case they ran into a financial crisis following the fall of the Communist government there.  It said that either side could fail to fund the agreement if it was impossible.  The US declared that it did not have the money to fund the agreement, which had been about $2 million in previous years.  Clearly the US government had $2 million that it could have contributed, but the Republicans would not. 

The Polish equivalent of an assistant secretary of State who was in charge of all Western Hemisphere affairs called me in periodically to berate me, on behalf of the US government for not honestly fulfilling the terms of a promise we had made in writing to the Polish government.  As someone who was brought up to be honest and pay his bills, I was embarrassed and humiliated to be the recipient of these demarches.  I told him that if he really wanted to change things, he should raise the matter with the Ambassador, or have his Ambassador in Washington raise it with the Secretary of State, but at that time, Poland main foreign policy objective was membership in NATO.  Poland was not yet a member, and was unwilling to do anything that might jeopardize its chances of becoming a member.  So, he complained to me, but would not raise the issue with higher officials, whom he needed to support his NATO application.  While I understood that I was not personally responsible, I was ashamed of my country, and I can still remember squirming in his office while he accused the US of dishonesty.  I inwardly agreed with him, but never admitted it to him or to anyone else in Poland.  I adhered to the instructions I received from Washington. 

Meanwhile, I was working on another project funding environmental projects in Poland.  An agreement on Polish debt said that instead of paying part of the debt it owed to the US, the Poland could pay a small part to fund environmental projects in Poland.  I was the US representative and sponsor of a Polish environmental NGO called the Ekofundusz, or Ecofund.  This was a small group of about 20 people who identified, funded and administered environmental projects around Poland.  The leaders were former senior Polish environmental officials, including a former Minister of Environment, who were on the outs because they had supported Solidarity’s overthrow of the Communist government.  After the initial change, many of the old Communists were back in government while I was there, including the current Minister of Environment.  The Ecofund served as sort of a Brookings Institution or American Enterprise Institute, giving a job and an opportunity to keep working on their issues to these anti-Communist leaders while they were out of power. 

It had taken me much of my first two years in Poland to get the legal and financial provisions in place for the Ecofund to stand on its own.  About the time that the Congress was refusing to fund the Maria Sklodowska Curie Fund, I got the pieces in place to authorize the Polish treasury to pay part of its US debt to the Ecofund, setting up the Ecofund for ten or more years of funding. 

Because there was no more money for the Maria Sklodowska Curie Fund, and the Ecofund was set up to get its future funding from the Polish government, the Ambassador said that he was going to recommend abolishing my position.  I was disappointed, because in addition to working on science and environment funding, I also worked on nuclear non-proliferation issues, but because of the division of labor in the embassy, and because my predecessor had not been interested in these issues, non-proliferation issues usually went automatically to the political section.  Sometimes I did not even get the cables from Washington about those issues.  For some reason, the one issue that automatically came to me was the Nuclear Suppliers Group.  Because of this, I formed a relationship with the Polish special ambassador for non-proliferation issues, Ambassador Strulak.  He became the rapporteur for the five year review conference of the Non-Proliferation Treaty while I was in Poland. 

Another embarrassing moment involved Ambassador Strulak.  He often visited the US and met with many American non-proliferation officials.  Although I had spent many of my Washington assignments dealing with the Missile Technology Control Regime (MTCR), it was an issue that seldom came to my attention at the embassy in Warsaw, because the cables and the action automatically went to the political section.  On one of my visits to Amb. Strulak to talk about Nuclear Supplier Group issues, he told me that during his last visit to Washington, he had been inquiring about the MTCR.  He told me that Poland wanted to join, but that the US had blocked their membership.  He said he had asked the experts in Washington who understood the issue, and my name frequently came up.  It was the first I had heard about the matter.   When I inquired about it after Amb. Strulak had told me about it, it turned out that President Clinton had personally decided to blackball Poland.  I understood the reason.  The MTCR had initially been set up as a somewhat informal arrangement among friendly nations, thus the administrative structure was relatively relaxed.  But it had begun to grow by leaps and bounds, making the informal structure difficult to work with.  Thus, the US wanted to put a more structured leadership in place before expanding the MTCR even further.  Although I understood, I was deeply disappointed that what was to some extent my baby had offended Poland while I was in Poland, and I had been completely cut out of the discussion. 

While I was stewing because my job would be eliminated with the end of the Maria Sklodowska Curie Fund, and I was being cut out of non-proliferation policy issues, I got a call from Washington asking if I would be willing to go to Rome to take on the Science Office there in a few weeks.  Rome was about to take on the rotating presidency of the European Union, and the current science officer in Rome was leaving or had already left.  I agreed to go, rather than just sort of hang around in Warsaw, but in retrospect, I should have looked further into the offer, which at the time seemed too good to be true.  I later found out that the man I was replacing was a political appointee, a “schedule-C” who had been with the Ambassador to Italy Bartholomew for the maximum allowed eight years, and the State Department had not allowed him to convert over to become a career Foreign Service officer.  Thus, he had been forced to leave, and when I arrived in Rome, I discovered that various people in the embassy, probably notably including the Ambassador, were not happy about it.  But I didn’t know that while I was in Warsaw. 

Rome wanted me to come right away, but the first annual meeting of the Ecofund under their arrangement with the Polish treasury was about to take place in a few weeks.  I said that I could not leave until after the meeting, because I wanted to make sure that everything was in place for the Ecofund’s future existence.  It turned out that the date I was to leave was exactly the date of the government shutdown.  Preparing to move to Rome, my wife and I had packed everything.  Big things had been shipped to Rome, and our car was packed with clothes and two dogs, planning to drive to Rome as soon as the embassy closed for the day.  In the afternoon I was saying my farewells, and I was in the Defense Attaché’s office, when I got a call from my assistant who said I had an urgent call from Rome.  When I came down to take it, the caller said that I should not leave Rome because the government had been shut down.  After all the disappointments I had been through, it was the last straw.  I usually tend to follow orders, but this seemed too much.  My wife and I had no place to live in Warsaw; we had already moved out of our house.  We had already shipped our belongings to Rome.  It seemed to me that the US government had abandoned its troops in the field.  Its word was no good, either in promises to foreign governments or to its own Foreign Service officers. 

The only comparison I can come up with goes back to my days in the Army in Vietnam.  My artillery battery was stationed at Fire Base Barbara on a mountaintop near the Laotian border just a few miles south of the DMZ with North Korea.  We received an intelligence report that enemy troops were massing at the bottom of our mountain and were about to attack.  Our main defense was a group of old air defense artillery duster guns, twin 40-mm cannons that had been used against planes, but now were used against troops on the ground.  Because the duster crews were often stationed in dangerous places, they had a reputation for not being too disciplined and not playing by the Army rules.  We got a call from out battalion headquarters saying they heard that our dusters were low on gas, and we should not lend them any because it was too hard for our battalion to supply us out on the Laotian border.  We were not going to keep the dusters from firing at the enemy just because our battalion did not want to resupply us.  But I was not happy that headquarters apparently thought it was better for us to die to save gas than for them to have to resupply us a week or two early.  There is a history of expendable troops in war, and if you have to sacrifice your life, so be it, but it you don’t HAVE to sacrifice your life, you shouldn’t do it just to save the US government a few bucks.  The fact that my life was not worth a 55 gallon drum of gasoline, or a continuing resolution to keep the government open until a long-term agreement could be reached, was too much. 

It turned out that the deputy chief of mission, the embassy number two, was an old friend from my assignment in Brazil.  He said to go ahead and leave Warsaw and come to Rome, and he would work out the bureaucratic details.  So we went, but I had pretty much lost faith in the US government for not keeping its word, and in the Republican Party in particular for abandoning me in the field.  I was mad with the government when I left Rome for trying to strand me in Warsaw, and apparently Rome was mad with the government for firing my predecessor in Rome and sending me instead.  It did not make for a happy assignment.  I decided after a while that I would stay for as long as Rome held the presidency of the EU, but then I would retire from the Foreign Service.  I did not feel welcome in Rome, and I had lost respect for the American Government.  It was sad for me as a Vietnam veteran and a Foreign Service officer with more than twenty years of experience. 


In any case, as the US faces the potential of another government shutdown, whether now or in December, it brings back a lot of bad memories, and a huge contempt for the Republican Party.  It claims to be the party for a strong American defense, but I see it as the party that abandoned me in the field.  I keep trying to remind myself that as much as I dislike the party, there may be some good individuals in it, but I have a hard time finding any.  

Wednesday, September 23, 2015

Bigotry in the US and Israel

Tom Friedman's column in today's NYT is probably meant to be a warning to US politicians not to speak evil of their opponents, to me it is confirmation of bigotry in Israeli society, which Jews usually denounce as antisemitism if anyone dares speak it aloud.  As a Jew, Tom Friedman may come under more criticism than a gentile, but he has been an objective newsman in both the Israeli and the Arab world before returning to the US.  Discussing the film, "Rabin: The Last Day," the director said Rabin's murder "came at the end of a hate campaign" that included "the parliamentary right, led by the Likud (party), already then headed by Benjamin Netanyahu."

Friedman says this film is a warning to American Republican candidates who are stirring up similiar hate-filled emotions in the US.     He is right that hate is not a good basis for a campaign,  But if something is an issue, you should not refuse to talk about it just because you might hurt homebody's feelings, but there is no need to threaten or encourage violence.  I don't think either Trump or Carson has done that.

The US has not descended to the level that Israel reached at the time of Rabin, as described in the film.  Israelis should remember that people who live in glass houses should not throw stones.  Let them work out their own political problems with their Muslim neighbors and then lecture us on how to deal with our own political system.

Monday, September 21, 2015

Congressman Perlmutter Supports Iran Nuclear Deal

Congressman Perlmutter answered my last letter encouraging him to support the Iran nuclear deal.  He said that he would support it, combined with strong support for Israel.
Letter from the congressman:
September 4, 2015
Dear James,
Thank you for contacting me about the Iran nuclear agreement. I appreciate hearing from you on such an important issue, because it enables me to better represent the beliefs and values of our district.
I support the Iran Agreement negotiated by the United States, Germany, China, United Kingdom, France, Russia, the European Union and Iran. The U.S. and its international partners have committed to a diplomatic solution I believe reduces and limits Iran's ability to develop or manufacture nuclear weapons and is in America's best interests. This Agreement should also reduce nuclear tensions in the Middle East and will make our friend and ally, Israel, safer and less prone to nuclear conflict with Iran. I have reached these conclusions after reading the Agreement and its attachments, reviewing numerous articles pro and con, attending classified briefings, discussing the Agreement with its proponents and opponents, and listening to military and diplomatic experts, as well as constituents.
This Agreement has far reaching and historical impacts for our foreign policy and for our international security. The Agreement is a nuclear non-proliferation agreement limiting Iran's capacity to build nuclear bombs. It is not, nor is it intended to be, a peace agreement which resolves or eliminates all threats. So, despite the diplomatic progress made toward reducing Iran's nuclear capabilities under the Agreement, further steps must be taken to deter and discourage Iran from fulfilling its threats and to assist Israel in defending its national security.
Consequently, I am working with Congressional leadership and the Obama Administration to assure: 1) Israel receives an "unprecedented level of military, intelligence, and security cooperation from the United States; 2) America works with Israel to develop and share the latest military technology, including technology to penetrate deep bunkers; 3) Congress completes and extends legislation that provides military and foreign aid to Israel over the next 10 years; 4) Congress maintains oversight of the Agreement and its implementation as well as other laws and sanctions pertaining to Iran through frequent classified and unclassified briefings; 5) and America opposes any type of resolution brought before the United Nations that is one-sided or biased against Israel or which harms Israel's national security. The best path forward is to support the Agreement and to enact legislation that maintains a strong military presence in or around the Middle East and which provides unprecedented aid to Israel.
I encourage you to continue to contact me about the issues that are important to you.  Please visit our website at www.perlmutter.house.gov to sign up for my e-newsletter and receive periodic updates on my activities as your representative in Washington.

Sincerely,
Ed Perlmutter
Member of Congress

Monday, September 14, 2015

Americans Ignore Australia

Today I watched several US morning news shows - CBS & Morning Joe - and then I watched Aljazeera.  One of Aljazeera's lead stories was the fact that Australia had a new Prime Minister.  Neither of the US shows had mentioned that.  All of the the US networks focus on easy news.  They have virtually no staff overseas.  They send their one foreign correspondent to wherever the hot spot of the day is, now the refugees in Europe.  If they have any foreign story, it is that one hot spot, and often there is not foreign reporting.  Lately anything from the Middle East has just been reported from the foreign correspondent's base in Turkey.  If it's a European story, it's likely just to be reported from London, and if it's Asian, from Beijing or Shanghai, wherever their one correspondent is based.  Aljazeera actually has correspondents who go the where the news is happening, even if it is not in a major capital.
Instead of reporting news, the so-called news shows in the US mainly have pundit talking heads, pontificating about the US election, which is still more than a year off.  Right now, the campaign is really just a reality show, which partly explains why Donald Trump is doing so well.  He is good at reality TV, and the networks love him because he boosts ratings without requiring the networks to do any work.  There is always some new meaningless poll they can talk about.  With the advent of cell phones, polls are virtually worthless, but the pundits latch on to them as if they were solid gold.
Besides Aljazeera, the New York Times and the Wall Street Journal are about the the only organizations doing serious reporting.  Even on American stories, the networks seldom do any investigative reporting.  They just go to press conferences at the White House, the forest fire, or wherever the press gaggle assembles.  America is supposed to be an important country leading the world, but it's difficult for Americans to find out what is happening around the world, or even what is happening in the US.  How corrupt is Congress?  Americans have opinions, but nobody gives them the facts to back up or refute their opinions.

Monday, August 31, 2015

IIASA and Richard Perle

For a substantial part of my Foreign Service career, while Reagan was President, I frequently crossed swords with Richard Perle at the Pentagon.  He was much superior to me.  He was an assistant secretary of Defense; for much of this time I was a junior officer at the State Department.  However, I often worked on technology transfer issues, and Perle was very interested in technology transfer issues, especially as they related to the old Soviet Union.  He always kept an eagle eye on CoCom, the old Coordinating Committee that regulated technology transfers from Western, allied countries to the Soviet Union. 

My first brush with him must have been shortly after Reagan was elected and Perle was installed at the Pentagon.  I got a call from the science advisor to the State Department Under Secretary who handled technology transfers.  He said that Perle was cutting America’s support for and participation in IIASA. 

IIASA is the International Institute for Applied Systems Analysis in Austria.  (IIASA web site, and IIASA Wikipedia entry.)  In the Cold War 1980s its mission was to promote cooperation between scientists from Western and Communist countries.  Perle was apparently concerned that it might be a conduit for uncontrolled technology transfer from the West to the East.  It was such an innocuous, academic institution that this seemed ridiculous.  The Under Secretary’s science advisor and I tried to stop Perle from blocking US participation, but as I recall, we failed. 


The good news is that IIASA survived and is still going today, with a broader mandate, since the old bipolar Cold War has ended.  It was my introduction to Richard Perle, who always seemed to be on the opposite side of issues that we were both interested in, from East-West technology transfers to third world transfers involving nuclear proliferation or other high tech problems.  

Reagan, Casey, and the Ayatollahs

I was in a meeting with Bill Casey not long after he became head of the CIA.  I had been the State Department representative working on NIE-11-12-80 (CIA link to it is here - http://www.foia.cia.gov/document/0000261310 ) regarding Soviet military science and technology.  Reagan was elected more or less while we were working on it.  The chief CIA honcho was a guy named Jan Herring, who is apparently still around (link - http://www.academyci.com/jan-herring/ ).  He and CIA deputy director Admiral Bobby Inman quit abruptly about the time of the election and the naming of Bill Casey to be CIA director. 

There were of course many military types working on the NIE (National Intelligence Estimate), and I was the lone working level State Department rep.  After a while I got concerned that the hawks were going nuts finding new technological ways the Soviets were going to kill us in our beds, and I started to push back and say that we can’t be sure that this unusual frequency or substance is being developed to use as a super weapon.  And I found the CIA was supporting me, although they wouldn’t take the lead in opposing the military.  However, after Jan Herring left and Casey came in, there was no hope of toning down the Estimate.  In addition the State Department Bureau of Intelligence and Research usually is headed by a senior Foreign Service officer, but at this time it was headed by a senior CIA official on loan.  He was not about to take a stand against the new man who was going to be his boss when he returned to the CIA.  So, at the big, final meeting with Casey to approve the NIE (which I attended), he did not make any waves about State Department concerns.  Casey really did mumble; I could not understand a lot of what he said.  I would like to think some of the “alternative view” language in the NIE was due to me, but after 35 years, who knows where it came from. 

Anyway, I like to think that Reagan’s election was orchestrated by the Iranian ayatollahs, rather than the ayatollahs being manipulated by the Reagan campaign.  There is a movie about the “Manchurian Candidate.”  I think Reagan was the “Iranian Candidate.”  The Iranians hated Carter for letting the Shah come to the US for medical treatment when he was dying.  They wanted “anybody but Carter.”  If Carter had rescued the hostages there is some chance that he might have been elected, because he would have appeared a stronger, rather than a weaker ("malaise") President.  Reagan probably would have won anyway, but who knows? 


I saw Carter recently when he came to Denver to sign copies of his new book, “A Full Life.”  I bought one and he signed it.  Recently someone asked him if he had any regrets, and he said one was the failed rescue mission, because if it had not failed, he might have been re-elected.  The Iranian hostages were a major factor in the election.  Incidentally, one of the hostages was a classmate of mine in the A-100 class.  This is the group of 40 or 50 officers that you come in with and there is a 6 or 9 month orientation, and then you can kind of keep track of your classmates to see who becomes the first ambassador, who goes the highest, etc.  Several of my classmates became ambassadors, but I didn’t make it.  

Wednesday, August 19, 2015

Second Letter to Congressional Representatives

As the date for voting on the Iran nuclear deal approaches, please note that despite the split of public opinion on the issue, the vast majority of those knowledgeable about the issue support the deal.  A number of military officers, scientists and diplomats have publicly weighed in on the issue, and in almost all cases they favor approval of the deal.  I urge you to support the deal. 

Three dozen retired generals and admirals have written an open letter supporting the nuclear deal and urging Congress to do the same.  They called the agreement “the most effective means currently available to prevent Iran from obtaining nuclear weapons.”  (https://www.washingtonpost.com/world/national-security/retired-generals-and-admirals-back-iran-nuclear-deal/2015/08/11/bd26f6ae-4045-11e5-bfe3-ff1d8549bfd2_story.html and http://apps.washingtonpost.com/g/documents/world/read-an-open-letter-from-retired-generals-and-admirals-on-the-iran-nuclear-deal/1689/

Twenty-nine top American scientists have written President Obama supporting approval of the deal.  Many of those who signed have worked on America’s nuclear weapons program; some were Nobel laureates.  The New York Times notes that many of the scientists hold Department of Energy “Q” clearances allowing access to sensitive technical information about nuclear weapons.  I held a “Q” clearance when I was a State Department Foreign Service officer, because I worked on nuclear non-proliferation issues.  (http://www.nytimes.com/2015/08/09/world/29-us-scientists-praise-iran-nuclear-deal-in-letter-to-obama.html and http://www.nytimes.com/interactive/2015/08/08/world/document-iranletteraug2015.html)

Finally, many of my former State Department colleagues have written supporting the agreement.  A letter to President Obama signed by more than 100 former American ambassadors stated, “If properly implemented, the comprehensive and rigorously negotiated agreement can be an effective instrument in arresting Iran’s nuclear program and preventing the spread of nuclear weapons in the volatile and vitally important region of the Middle East.”  I served with a number of the ambassadors signing the letter, some when we were young junior officers together; others were ambassadors under whom I served overseas.  I have recently been corresponding about this issue with Amb. Dennis Jett, who signed the letter.  (http://www.nytimes.com/2015/07/17/us/politics/former-us-diplomats-praise-iran-deal.html and http://www.nytimes.com/interactive/2015/07/16/us/politics/document-american-ambassadors-letter.html

I hope that you will take the views of these experts who favor the Iran nuclear deal into consideration in your deliberations.  In addition, they represent the views of many others from their professions, like myself.  I believe that it will make the world, the United States, and the Middle East, including Israel, safer.  It will significantly restrict Iran’s nuclear activities, and it will provide ten to fifteen years of breathing space in which to work out the next steps for preventing further nuclear proliferation in the region. 



Monday, August 17, 2015