Missing Iraqi Billions 'probably Stolen'
by Paul Richter via stan 2011-06-14 10:49:13

THIS month, the Pentagon and the Iraqi government are finally closing the books on the program that handled funding for reconstruction in postwar Iraq.

But despite years of investigations, US defence officials still cannot say what happened to $US6.6 billion ($6.3 billion) of the cash. Federal auditors are now suggesting that some or all of the cash may have been stolen, not just mislaid in an accounting error.

After the US-led invasion in March 2003, the Bush administration flooded Iraq with so much cash that a new unit of measurement was born.

Pentagon officials determined that one giant C-130 Hercules cargo plane could carry $US2.4 billion in shrink-wrapped bricks of $US100 bills. They sent an initial full planeload of cash followed by 20 other flights by May 2004 in a $US12 billion haul that US officials believe to be the biggest ever international cash airlift.

Stuart Bowen, special inspector-general for Iraq reconstruction, said the missing $US6.6 billion might be ''the largest theft of funds in national history''.

Iraqi officials are threatening to go to court to reclaim the money, which came from Iraqi oil sales, seized Iraqi assets and surplus funds from the United Nations' oil-for-food program.

The US Congress, which has already shelled out $US61 billion for similar reconstruction and development projects in Iraq, is none too thrilled either.

''Congress is not looking forward to having to spend billions of our money to make up for billions of their money that we can't account for, and can't seem to find,'' said Democrat congressman Henry Waxman, who presided over hearings on waste, fraud and abuse in Iraq six years ago when he headed the House government reform committee.

The cash airlift was a desperation measure, organised when the Bush administration was eager to restore government services and a shattered economy to give Iraqis confidence that the new order would be a drastic improvement on Saddam Hussein's rule.

The White House decided to use the money in the so-called Development Fund for Iraq, which was created by the Federal Reserve Bank of New York to hold money amassed during the years when Hussein's regime was under crippling economic and trade sanctions.

But US officials often didn't have time or staff to keep strict financial controls.

Millions of dollars were stuffed in gunny sacks and hauled on utility trucks to Iraqi agencies or contractors, officials have testified.

Pentagon officials have contended for the past six years that they could account for the money if given enough time to track down the records. But repeated attempts to find the documentation, or better yet the cash, were fruitless.

Iraqi officials argue the US government was supposed to safeguard the stash under a 2004 legal agreement. Abdul Basit Turki Saeed, Iraq's chief auditor and president of the Iraqi Board of Supreme Audit, has warned that his government will go to court if necessary to recoup the missing money.

''Clearly Iraq has an interest in looking after its assets and protecting them,'' Samir Sumaidaie, Iraq's ambassador to the US, said.

© 2011 Fairfax Media

http://tinyurl.com/3ogt7kr

Voters desert Julia Gillard over carbon tax
by Phillip Hudson via reed 2011-06-14 12:21:41

ONLY 30 per cent of voters are satisfied with Prime Minister Julia Gillard's performance, according to the latest Newspoll.

And Labor's core support is lower today than it was when Kevin Rudd was axed as PM almost a year ago.

Only days after party elder John Faulkner blasted toxic factions and a reliance on focus groups, Labor has recorded its second-lowest primary vote of 31 per cent, according to the Newspoll published in The Australian.

It is four points below the 35 per cent considered an unwinnable level by MPs when Mr Rudd was toppled.

Ms Gillard's satisfaction rating has dived five points in the past fortnight to a record low 30 per cent, well below Mr Rudd's low of 36 per cent in his final days as PM.

Her approval was a record high 50 per cent before she announced the carbon tax plan, a decision that has crushed her personal stocks and support for Labor.

The ALP's primary vote dropped three points in the past fortnight. The high under Ms Gillard was 42 per cent in the days after she took the leadership. It was 38 per cent on election day and hit a record low of 30 per cent in March, immediately after the carbon tax was announced.

Today's Newspoll shows the Greens fell three points to 11 per cent.

The Coalition's primary vote bounced back two points to 46 per cent. Under Tony Abbott's leadership it is at the highest level since May 2005, before John Howard announced WorkChoices.

In two-party terms, the Newspoll, taken over the long weekend, shows the Coalition has a thumping 55-45 lead over Labor.

The result is the exact reverse of the Newspoll in Ms Gillard's first weeks as PM.

The 10-point gap has widened from four points a fortnight ago and suggests that if an election were held now, Mr Abbott would easily become PM.

Ms Gillard says she does not intend to call an election until it is due in August 2013.

Both leaders remain more disliked than liked. Ms Gillard's disapproval is 55 per cent and Mr Abbott's 52 per cent.

Mr Abbott's satisfaction rating is down two points to 35 per cent, his second-worst score.

But on the question of the better PM, Mr Abbott has closed the gap from seven points to now trail 41-38.

Ms Gillard had led by as much as 53-31 before the carbon tax announcement.

Mr Abbott yesterday was forced to deny as "completely false" reports he might dump his more generous paid parental leave policy to give more money to pensioners.

Climate Change Minister Greg Combet said the Opposition's plan to scrap the carbon tax would mean taking away compensation for pensioners and families.

"It's Mr Abbott's big new pension clawback," he said.

© 2011 Herald and Weekly Times.
http://tinyurl.com/65bgg44

Economic and Social Catastrophe: Spain's "Indignados"
by Pablo Ouziel via stan 2011-06-15 10:48:39

While “Europe's slow-motion financial collapse” – as Mother Jones magazine described it in a June 6th article – continues to unravel, Spain, like other European states continues to implement anti-social-neo-liberal policies with strong opposition from the citizenry.

It has been one month since the country’s ‘Indignados’ (Indignant Ones) movement claimed nonviolently sixty city-squares in cities across the country, calling for economic democracy, political justice and peace. Since then, much has happened within Spanish borders, and what is happening there is clearly spreading across Europe, where we have already witnessed social movements making similar demands. We have seen the Bastille in Paris, taken nonviolently by French ‘Indignados’ only to be quickly reclaimed by the country’s police force. We have observed the rise of a parallel movement in Portugal where most city squares have also been camped on by ‘Indignados’, and where only hours before the country’s general elections protestors in Lisbon were attacked and beaten by police. We have witnessed how on that same night, in Athens, Greece, 80,000 protestors congregated in the city’s main square in opposition to the country’s ‘austerity measures’, waving banners in solidarity with the ‘Indignados’ of Spain and of other European country’s.

Wherever you focus in Europe you hear the same cries of indignation. In some countries with more intensity than others, but the cry is becoming louder everywhere, and what seemed like a slow-motion financial collapse, is rapidly becoming an accelerated social catastrophe. Specifically in Spain, despite the political elite presenting a country recovering from the financial collapse, everyday things are getting worse economically, politically, and socially, and protest although nonviolent for the most part, could be on the verge of becoming violent unless political and economic elites begin to make some concessions.

On the economic front, Spain began June with comments from the European Commission about the potential of the country missing its economic growth and budget-deficit targets for the year; its recommendation was further economic reform. Then a report from the ratings agency Moody’s, pointed out that the high Catalan deficit was affecting the solvency of the whole of Spain. A few days later, in the region of Castilla-La Mancha, the incoming administration of the rightwing Popular party (PP), before even taking office, had already proclaimed that the region was “totally bankrupt”. Then, the National Statistics Institute revealed that Spain’s property sales in April had been the lowest since the institute began reporting in 2007. Obviously, this stream of negative news coupled with discussions taking place in Europe regarding a potential debt default by Greece, affected Spain’s bond sales and moved the country one step closer to a bailout, or a default followed by its subsequent debt restructuring.

On the political front, June has been equally intense, the government has approved by decree reforms against collective bargaining agreements, despite failed negotiations with the two major trade unions in the country. It has approved the extension, indefinitely of the country’s Spanish military mission in Libya, and has announced the creation of a new NATO operations centre, which will control Spanish airspace and will help in missions coordinated from Southern Europe.

In regards to the social front, as of the first of June, the government warned that the ‘Indignados’ could not remain camped on city squares for much longer. Then, using a visit from Tony Blair, in which Blair said, “demonstrators should be heard but not allowed to govern”, Spain’s prime minister, Jose Luis Rodriguez Zapatero, addressed the request for electoral reform by the ‘Indignados’, by telling them this could only be possible through consensus from all political parties – a cowardly way of responding without complying.

In response to these numerous events, commissions of the ‘Indignados’ from squares across the country met in Madrid’s Puerta del Sol Square, to discuss the future of the movement. Through a long process of popular assembly, they agreed to three important actions: First, to boycott the country’s Town Halls as the new governments were sworn in following the recent regional and local elections; second, to abandon city squares, and move their social action into city neighbourhoods – in an attempt to broaden the movement’s involvement with the rest of the citizenry; and third, to continue organizing protests on specific dates focused on particular issues – including a firm commitment to a global protest of ‘Indignados’ on October 15th.

The movement’s first nationwide coordinated initiative since the spontaneous movement mushroomed on May 15th, the boycott of Town Halls, was well represented over the weekend by ‘Indignados’ across Spain. Demonstrators across the country blocked entrances to Town Halls, climbed onto the balconies, blocked official cars from exiting carparks, disturbed investiture sessions with incriminating speeches, and followed politicians across cities as they celebrated their victories, shouting to them, “shame on you!”

Sadly, the police force was equally mobilized. In Valencia, where the new government has ten of its members including its president facing corruption charges, police charged at demonstrators injuring twelve and arresting five. The vice president of Spain, Alfredo Pérez Rubalcaba, was forced to cancel a planned trip to the city in order to avoid further protests. In the city of Santiago de Compostela police also attacked the protestors. In the city of Madrid, police batons hit them. In the city of Salamanca five ‘Indignados’ were injured. In the city of Burgos two were arrested. In the city of Castellón, they were violently dispersed. In the city of Vigo, they were also dispersed; and, in the city of Palma de Mallorca, three were arrested. Following the numerous arrests across the country, spontaneous demonstrations followed in front of police headquarters demanding the prompt release of those detained. Most protestors where released on bail.

As things stand in Spain right now, according to a survey published by newspaper El Pais, there exists wide support (81%) amidst the Spanish population for the movement. In fact, in addition to public intellectuals such as Vicent Navarro, Arcadi Oliveras, or Eduardo Galeano giving them support, political figures such as Santiago Carrillo, who was the secretary general of the Spanish Communist Party during the country’s transition to democracy – a key voice throughout the transition, and Cayo Lara, the coordinator for the third largest political party in Spain, Izquierda Unida, have both aligned with the movement’s views. Even Rosalía Mera, who is Spain’s richest woman according to Forbes Magazine, has expressed public support for the ‘Indignados’.

It seems clear, when one has an in depth look into current events unfolding in Spain, that these protests have hit a nerve throughout Spanish society, and although the movement is practicing a form of nonviolent direct democracy which is not familiar to most Spaniards – indeed to the majority of citizens in Western style democracies –, the present Spanish political, social, and economic climate is beginning to be shaped, at least partially, by its cries of indignation. Nevertheless, it is important to highlight, that unless economic and political elites begin to listen and engage in some serious dialogue with the ‘Indignados’ instead of sending out the police force to hit them on the head, the nonviolent stance of the majority of protestors could quickly turn into a violent response to sustained police brutality. After all, it is important to remember that this is a one-month-old spontaneous and heterogeneous movement, which is only now beginning to organize and present specific demands.

The nonviolent protestors on Spanish streets are not Gandhi’s exemplary well-trained and disciplined nonviolent peacemakers, these protestors have not made pledges of nonviolence or have endured months of rigorous nonviolence training in Gandhian Ashrams. Whether the ‘Indignados’ can refrain from violence as the police continue to beat them, we will only learn as events unfold. However, if the country’s elites have any dignity left, they will not continue testing their endurance and will instead begin a credible process of reform, which examines and addresses all of their demands. At the time of writing, Artur Mas, the President of the Generalitat (the government of the Catalan autonomous region) was forced to arrive to parliament in a police helicopter, as thousands of ‘Indignados’ blocked the entrance in an attempt to boycott the region’s budget approval. They were shouting: “You do not represent us!” The parliamentary session began with only half of the representatives able to enter the building.

© 2011 Pablo Ouziel, Global Research

http://globalresearch.ca/index.php?context=va&aid=25278

Greece: prime minister George Papandreou offers to stand aside
by Helena Smith via may 2011-06-15 11:23:05

The economic and social mayhem gripping Europe's peripheries appeared to have claimed the scalp of another government after the Greek prime minister admitted he could not drive through reforms to shore up the beleaguered economy, and offered to make way for a government of national unity.

After a day on which tens of thousands marched on parliament to oppose the swingeing austerity measures designed to stave off bankruptcy, George Papandreou effectively conceded that he had not been able to muster enough support in parliament for the swingeing cuts required by international creditors to enable Greece to balance its books.

Papandreou told his conservative opposite number, Antonis Samaras, that he would stand aside and make way for a new leader if the opposition joined his party in a national unity government committed to sweeping reform to prevent Greece's tailspinning economy from crashing.

It remained unclear whether the opposition New Democracy party would agree to the move. Party insiders were indicating that it would only do so if the government renegotiated the terms of last year's €110bn (£96bn) international bailout package, designed to save Greece from default.

"The most important member of a ship's crew is the captain, and the captain has to go," prominent conservative deputy Theodoros Karaoglou said, according to Associated Press. "If we joined forces, we could go to our (creditors) together to negotiate and the results of course would be better."

Greece's economy is drowning in more than 300bn euros of debt – around one and a half times bigger than the country's entire annual output. Unemployment has rocketed to 16.2 percent, and the economy is predicted to contract by as much as 3 percent this year, making it Europe's worst performing economy – and one of the worst in the world.

Under a bailout agreed with the EU and IMF a year ago, the country was to implement painful austerity measures, cutting spending deeply and privatising large swathes of the economy. Papandreou's plan provided for 6.5 billion euros ($9.4 billion) in tax rises and spending cuts this year.

But a popular revolt has demonstrated that reforms are deeply unpopular. A wave of strikes and riots have reduced Athens to a smouldering mess of shattered windows and shuttered storefronts, furious during daytime riots, derelict and desolate by night.

Earlier on Wednesday, police used teargas on demonstrators rallying outside parliament.

At least 11 people were injured and another 20 people were detained, according to police, as protesters responded to tear gas by hurling stones and firebombs.

Cafe tables and chairs lay overturned as rubbish bins burned. Heavy clouds of teargas hung over Syntagma Square and side streets. The choking chemicals wafted as far as the presidential mansion behind parliament, where Papandreou met with the country's president, Karolos Papoulias, to brief him on the severity of the situation.

"We want them out. Obviously these measures are not going to get us out of the crisis," said Antony Vatselas, a 28-year-old mechanical engineer, crying from tear gas. "They want only us to pay for it," he told Reuters. "And they are doing nothing. I want the debt to be erased. If this doesn't happen, there is no exit for Greece."

Papandreou has suffered plummeting approval ratings and an open revolt from within his own PASOK Socialist party over the new austerity bill, which is set to increase taxes and cut spending until 2015 two years beyond the current government's mandate.

Several MPs indicated that they would not support his reform plan, threatening his thin majority in parliament, where his Pasok party has 155 seats in the 300-seat chamber.

The only alternative to financial austerity appears to be a default on Greece's large stack of loans, an outcome that European leaders have been desperate to avoid for fear that the contagion effect would ripple through the international financial system.

© 2011 Guardian News and Media Limited.

http://www.guardian.co.uk/world/2011/jun/15/greece-prime-minister-george-papandreou

Greek PM George Papandreou to unveil new cabinet
by staff report via reed 2011-06-15 21:55:21

Greek Prime Minister George Papandreou is set to announce a new cabinet in a concessionary move as he seeks support for new austerity measures.

Mr Papandreou, who will stay in his post, says he will put the new government to a vote of confidence in the parliament.

Renewed fears that Greece will default on its debt have shaken markets.

The proposed measures are necessary to gain EU and IMF aid, but have been met with fierce opposition in Greece.

Athens witnessed some of the most violent protests in more than a year on Wednesday as demonstrators went on to the streets and took part in a general strike.

Mr Papandreou had also faced the threat of a revolt in his socialist Pasok party over the controversial package.
'Road of duty'

Mr Papandreou, who came to power in 2009, has not indicated the extent of his ministerial shuffle, but correspondents say it may include the replacement of Finance Minister George Papaconstantinou.

The BBC's Malcolm Brabant in Athens says economic analysts say the post is likely to be filled by Lucas Papademos, a former vice president of the European Central Bank.

This would be met with approval from the IMF and EU, but whether it will satisfy members of parliament remains unclear, our correspondent says.

The government is seeking approval for a package of 28bn euros (£24.6bn; $40.5bn) of cuts, due to take effect from 2012 to 2015.

The policies are required for the release of the next tranche of aid - 12bn euros - from the EU and IMF.

In an address on Wednesday, Mr Papandreou announced he would "continue on the same course".

"This is the road of duty, together with Pasok's parliamentary group, its members, and the Greek people.

"Tomorrow I will form a new government, and then I will ask for a vote of confidence," he said.

During talks, Mr Papandreou was said to have offered to step down to clinch a coalition, but later agreed to carry on.

EU commissioners are said to have a "profound sense of foreboding" about Greece and the future of the eurozone, according to leaked account of a meeting on Wednesday seen by the BBC.

Greece became the world's least credit-worthy nation after Standard & Poor's ratings agency downgraded it earlier this week.

On Wednesday, tens of thousands of activists and unionists gathered in Syntagma square in Athens, near parliament.

A further 20,000 people also demonstrated in Thessaloniki, police said.

The general strike was the third in Greece this year.

The events destabilised markets, with major indexes witnessing the biggest drop on Wednesday since 1 June, and the euro sliding more than 1% against the dollar.

Yields on Greece's 10-year bonds reached a record high of 18.4%.

© 2011 The BBC

Greek Riots, Political Chaos Hammer Markets
A desperate bid by IMF friendly Greek PM to retain power but the writing is on the wall, as it is for numerous other European nations that fail to heed MAJORITY opinion.


http://www.bbc.co.uk/news/world-europe-13787323