Thursday, September 4, 2014

Right on!

Excellent analysis - right on!

It may not fit Putin’s narrative, but Baltic Russians aren’t being victimised

The awkward fact for Kremlin apologists is that Nato has been a friend to Baltic Russophones. Eastern Ukrainians aren’t so lucky
 
theguardian.com,
       
Vladimir Putin attends a WWII ceremony
Vladimir Putin at a ceremony to commemorate WWII. ‘The plight of Russian speakers in Ukraine is the chief grievance justifying Kremlin intervention, ostensibly protecting its diaspora from fascists in Kiev.' Photograph: Maxim Zmeyev/Reuters
On the day Russia annexed Crimea, an old friend in St Petersburg texted me to apologise. “I’m sorry that my country has lost its mind,” he wrote. This friendship is 20 years old. It was struck up when I was a student in the disorderly days of Boris Yeltsin’s presidency and nurtured when, as a foreign correspondent, I watched Vladimir Putin impose a kind of order – the kind that has turned my friend into a liberal dissident and that makes me unwilling to publish his name.

He is part of the Perestroika generation, born too late to be indoctrinated as a Soviet patriot but old enough to remember what the old Kremlin propaganda looked like on television and so to despair at seeing it come back.

Russia isn’t the only former communist country in eastern Europe to flunk the transition to democracy, but it is the biggest and the most dangerous. The fortunate ones are the former Warsaw pact members that joined Nato and the European Union, a process that demanded political, economic and social reforms which, while clearly no panacea, worked better for people in states that tried them than in states that didn’t.

The bounty is shared by many ethnic Russians marooned in the Baltic and denied full citizenship of their new host country. The rigours of Nato and EU accession forced nationalist governments to furnish these minorities with basic rights and devise routes to integration. Regional experts confidently predicted ethnic warfare on the Bosnian model. It never happened.

I flag up this case study because the plight of Russian-speakers in Ukraine is the chief grievance justifying Kremlin intervention, ostensibly protecting its ethno-linguistic diaspora from monstrous fascists in Kiev. I lived in Riga when Moscow would periodically ramp up exactly the same rhetoric against Latvia and Estonia. I also have no doubt that, were Latvia and Estonia not now protected by Nato, they too would be foundering states subject to Putin’s aggressive territorial demands.

The EU accession process was vital when it came to putting humane laws on the statute books and training up civil servants in the ways of democratic statehood. There was an obvious economic interest in joining the Brussels club. But for those countries that bordered Russia, acceptance by Nato was the big prize. It was the thick black ink that would make permanent the borders around their sovereignty that Moscow plainly believed were drawn in pencil and vulnerable to erasure.
There were many voices seeking to deny the Balts that security. The argument then was much like today’s calls for soothing of Russian tempers over Ukraine: the west, giddy with cold war triumphalism, is provoking the bear by setting up shop on the borders of his den, leaving him no choice but to lash out. There is a grain of truth and a dollop of delusion in that account. Moscow never needed the slightest provocation to undermine the sovereignty and viability of bordering states whose legitimacy it always denied. It did, however, know to back off when the west made clear it counted eastern Europe’s fledgling democracies as friends. Friends they would defend.

Western enthusiasm for February’s Maidan revolution and eagerness to deal with the new regime in Kiev is depicted by the Kremlin as a hostile act. But the precedents of 20 years suggest a country that reforms in partnership with western institutions will become steadily more stable and prosperous. And that would be good, not just for Europe and Ukraine but for Russia too. By contrast, a country that falls under Kremlin tutelage becomes more corrupt and dysfunctional, which is terrible for the people who live there and isn’t even good for Russia. This is the perversity of Putin’s position. A Ukraine that is allowed to develop without Putin’s tanks on its soil will still be required by geography, language and history to be a partner and conduit for Russian economic interests. The Kremlin’s current policy indicates preference for paranoid militarism over economic development inside Russia as well as Ukraine.

There isn’t much audience in Britain for this benign account of western motives. On the right there is the Ukip tendency, shared by many Tories, that is so jaundiced in hatred of Brussels that it prefers to see EU ambitions for partnership with Ukraine in Putinist terms – a land grab. On the left, too, there is sympathy with the notion that western support for Kiev is a divisive affront to the Slavic brotherhood of nations. That impulse comes in part from the habit of routinely opposing anything containing the imperial whiff of western arrogance (I fear it also contains a weird muscle memory of genuflexion to Kremlin-friendly arguments). As if Moscow’s self-serving narration of history to justify grabbing chunks of other countries’ land is something other than imperialism.

As for the rights of Russians and Russian-speakers in candidate countries – it was Nato as much, if not more than the EU which in the Baltic insisted on liberalising reform as a condition of membership. This was for the simple reason that neutralising inter-ethnic tensions in the Baltic matched the west’s hardheaded interests. Having a bunch of effectively stateless and miserable Russians inside a Nato country was transparently a bad idea, and the governments in Riga and Tallinn had to work hard to persuade Washington that they were sorting things out. US advisors would visit the region and dole out uncomfortable home truths about the need for nationalist politicians to fix their embittered attitude to minorities, to stop seeing themselves as victims and start behaving like responsible governments. The awkward fact for today’s Kremlin apologists is that Nato has been a friend to the Russian and Russophone populations in eastern Europe.

The problem has not disappeared and there are still grievances over citizenship, but Baltic Russians are not – as the Kremlin would like to depict them – a victimised minority suffering under an apartheid regime. Their rights and their prospects are immeasurably better than they would be as involuntary subjects of some Kremlin-concocted separatist banana republic. It is because of Nato that they are spared such a fate. Eastern Ukrainians are not so lucky.
 

Friday, August 29, 2014

Intervene!

From the Guardian:

http://www.theguardian.com/world/2014/aug/29/obama-us-foreign-policy-isis-syria-iraq-ukraine

Obama on US foreign policy: principled realist or failed isolationist?

In a week that has seen the president sucked closer towards military engagement in Iraq and Syriaoba, Obama’s verbal gaffe suggests even he is not sure of the overarching plan

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Quote from the article:

"The trouble is not all of America’s opponents seem as willing to play by the rules of this new world order. Economic sanctions on Russia, painful as Obama claims they are, do not seem to be deterring Putin from invading Ukraine. In the time it has taken the US to apply political pressure in Iraq, Isis forces have captured up to a third of the country."

Interesting observation: while the good guys waffle, the bad guys move. Obama's reluctence to use military in favor of diplomacy and sanctions is honorable. But also shows its limitations in these situations.

1. The Ukraine debacle is about Nato and Putin/Russia's sense that Ukraine is slipping away into the grip of Nato. Putin couldn't care less about the rebels or eastern Ukrainian land. It's the western encroachment upon Russia that is in principle troubling to their anachronistical sentiments. Hence, he grabbed Crimea while he could; while the west was snoozing, caught by surprise. Now, he's more concerned by making a point; as ugly as it is being made.

Europe needs to step up: a strong, united, unequivocal position by the west (and others) is what's needed to get Russian attention. On all levels!

2. The IS is an easier issue. No concern or respect for their wellbeing is needed. Through their actions they have placed all moral rights with military intervention. Europe and Obama (and others) must coordinate the intervention.

Thursday, August 28, 2014

It's wrong!

No wonder it's nice to work for Microsoft. They make tons of money and don't pay their taxes. Wrong superceedes legal. Imagine a cultural emphasis on social resposibility instead of the sexy 'what's good for me.' Microsoft cannot do without the U.S. market, the government has the upper hand: legislate away, please! Microsoft is not going anywhere.


Microsoft Admits Keeping $92 Billion Offshore to Avoid Paying $29 Billion in U.S. Taxes


on August 22 2014 9:26 AM


Microsoft Corp. is currently sitting on almost $29.6 billion it would owe in U.S. taxes if it repatriated the $92.9 billion of earnings it is keeping offshore, according to disclosures in the company’s most recent annual filings with the Securities and Exchange Commission. The amount of money that Microsoft is keeping offshore represents a significant spike from prior years, and the levies the company would owe amount to almost the entire two-year operating budget of the company’s home state of Washington.

The company says it has "not provided deferred U.S. income taxes" because it says the earnings were generated from its "non-U.S. subsidiaries” and then "reinvested outside the U.S.” Tax experts, however, say that details of the filing suggest the company is using tax shelters to dodge the taxes it owes as a company domiciled in the United States.

In response to a request for comment, a Microsoft spokesperson referred International Business Times to 2012 U.S. Senate testimony from William J. Sample, the company’s corporate vp for worldwide tax. He said: “Microsoft’s tax results follow from its business, which is fundamentally a global business that requires us to operate in foreign markets in order to compete and grow. In conducting our business at home and abroad, we abide by U.S. and foreign tax laws as written. That is not to say that the rules cannot be improved -- to the contrary, we believe they can and should be.”

The disclosure in Microsoft’s SEC filing lands amid an intensifying debate over the fairness of U.S.-based multinational corporations using offshore subsidiaries and so-called "inversions" to avoid paying American taxes. Such maneuvers -- although often legal -- threaten to signficantly reduce U.S. corporate tax receipts during an era marked by government budget deficits.

White House officials have called the tactics an affront to "economic patriotism" and President Obama himself has derided "a small but growing group of big corporations that are fleeing the country to get out of paying taxes." In a July speech, he said such firms are "declaring their base someplace else even though most of their operations are here."

"I don't care if it's legal; it's wrong," Obama said. Meanwhile, Democratic lawmakers have been pushing legislation they say would discourage U.S. companies from avoiding taxes through offshore subsidiaries. The proposals are being promoted in advance of the 2014 elections, as polling suggests the issue could be a winner for the party. In Illinois, the issue has already taken center stage in the state’s tightly contested gubernatorial campaign.

Because Microsoft has not declared itself a subsidiary of a foreign company, the firm has not technically engaged in an inversion. However, according to a 2012 U.S. Senate investigation, the company has in recent years used its offshore subsidiaries to substantially reduce its tax bills.

That probe uncovered details of how those subsidiaries are used. In its report, the Senate's Permanent Subcommittee on Investigations described what it called Microsoft’s “complex web of interrelated foreign entities to facilitate international sales and reduce U.S. and foreign tax.” The panel’s report noted that “despite the [company’s] research largely occurring in the United States and generating U.S. tax credits, profit rights to the intellectual property are largely located in foreign tax havens.” The report discovered that through those tax havens, “Microsoft was able to shift offshore nearly $21 billion (in a 3-year period), or almost half of its U.S. retail sales net revenue, saving up to $4.5 billion in taxes on goods sold in the United States, or just over $4 million in U.S. taxes each day.”

U.S. Sen. Carl Levin, D-Mich., said at the time: “Microsoft U.S. avoids U.S. taxes on 47 cents of each dollar of sales revenue it receives from selling its own products right here in this country. The product is developed here. It is sold here, to customers here. And yet Microsoft pays no taxes here on nearly half the income.”

Apple and General Electric, which also employ offshore subsidiaries, are the only U.S.-based companies that have more money offshore than Microsoft, according to data compiled by Citizens for Tax Justice. In all, a May report by CTJ found that “American Fortune 500 corporations are likely saving about $550 billion by holding nearly $2 trillion of ‘permanently reinvested’ profits offshore.” The report also found that “28 these corporations reveal that they have paid an income tax rate of 10 percent or less to the governments of the countries where these profits are officially held, indicating that most of these profits are likely in offshore tax havens.” 

Microsoft’s use of the offshore subsidiary tactics has exploded in the last five years, with the amount of Microsoft earnings shifted offshore jumping 516 percent since 2008, according to SEC filings.

According to Microsoft’s filings, if the company repatriates the $92.9 billion it is holding offshore, it would face a 31.9 percent U.S. corporate tax rate. U.S. law generally permits companies to deduct the foreign corporate taxes they’ve already paid from the U.S.’s official 35 percent corporate tax rate. According to CTJ's Richard Phillips, that means Microsoft's disclosure implies the company is paying just 3.1 percent in the locales where it is currently holding the cash. Phillips says such an extremely low rate strongly suggests the firm is keeping the earnings not just in relatively low-tax locales like Ireland, Singapore and others the company has disclosed, but also in smaller countries like Bermuda that are considered true tax havens.

According to a Wall Street Journal report in 2012 about companies reducing transparency about their subsidiaries, Microsoft “once disclosed more than 100 subsidiaries [but] reported just 13 in its 2003 annual report and 11 in its 2012 report.”

Wednesday, August 27, 2014

Uziland strikes again

Latest gun-outrage:

US girl, nine, kills gun instructor http://www.bbc.co.uk/news/world-us-canada-28948946

Yes, makes sense, "Guns & Burgers" - bring the whole family and we'll teach your 5-year-old how to use firearms - guninstructor proudly hails in the video. With pride. Proud. While you enjoy your fries. Will come in handy when the government show up to take away your guns. 5-year-olds in the window sills defending daddy's rights with uzis.

Daddy of course must protect his rights and property due to all those guns out there. Makes sense.

Must be proud to be an American.

Monday, August 18, 2014

Just say no


Excellent opinion by Krugman. Give Crimea back and, indeed, watch out for China. Although, they don't need to start wars in Inner Mongolia, Xinjiang, Tibet etc. - they already have.

================================

Why We Fight Wars

By PAUL KRUGMAN AUG. 17, 2014 NEW YORK TIMES
The Opinion Pages| Op-Ed Columnist

A century has passed since the start of World War I, which many people at the time declared was “the war to end all wars.” Unfortunately, wars just kept happening. And with the headlines from Ukraine getting scarier by the day, this seems like a good time to ask why.

Once upon a time wars were fought for fun and profit; when Rome overran Asia Minor or Spain conquered Peru, it was all about the gold and silver. And that kind of thing still happens. In influential research sponsored by the World Bank, the Oxford economist Paul Collier has shown that the best predictor of civil war, which is all too common in poor countries, is the availability of lootable resources like diamonds. Whatever other reasons rebels cite for their actions seem to be mainly after-the-fact rationalizations. War in the preindustrial world was and still is more like a contest among crime families over who gets to control the rackets than a fight over principles.

If you’re a modern, wealthy nation, however, war — even easy, victorious war — doesn’t pay. And this has been true for a long time. In his famous 1910 book “The Great Illusion,” the British journalist Norman Angell argued that “military power is socially and economically futile.” As he pointed out, in an interdependent world (which already existed in the age of steamships, railroads, and the telegraph), war would necessarily inflict severe economic harm even on the victor. Furthermore, it’s very hard to extract golden eggs from sophisticated economies without killing the goose in the process.

We might add that modern war is very, very expensive. For example, by any estimate the eventual costs (including things like veterans’ care) of the Iraq war will end up being well over $1 trillion, that is, many times Iraq’s entire G.D.P.

So the thesis of “The Great Illusion” was right: Modern nations can’t enrich themselves by waging war. Yet wars keep happening. Why?

One answer is that leaders may not understand the arithmetic. Angell, by the way, often gets a bum rap from people who think that he was predicting an end to war. Actually, the purpose of his book was to debunk atavistic notions of wealth through conquest, which were still widespread in his time. And delusions of easy winnings still happen. It’s only a guess, but it seems likely that Vladimir Putin thought that he could overthrow Ukraine’s government, or at least seize a large chunk of its territory, on the cheap — a bit of deniable aid to the rebels, and it would fall into his lap.

And for that matter, remember when the Bush administration predicted that overthrowing Saddam and installing a new government would cost only $50 billion or $60 billion?

The larger problem, however, is that governments all too often gain politically from war, even if the war in question makes no sense in terms of national interests.

Recently Justin Fox of the Harvard Business Review suggested that the roots of the Ukraine crisis may lie in the faltering performance of the Russian economy. As he noted, Mr. Putin’s hold on power partly reflects a long run of rapid economic growth. But Russian growth has been sputtering — and you could argue that the Putin regime needed a distraction.

Similar arguments have been made about other wars that otherwise seem senseless, like Argentina’s invasion of the Falkland Islands in 1982, which is often attributed to the then-ruling junta’s desire to distract the public from an economic debacle. (To be fair, some scholars are highly critical of this claim.)

And the fact is that nations almost always rally around their leaders in times of war, no matter how foolish the war or how awful the leaders. Argentina’s junta briefly became extremely popular during the Falklands war. For a time, the “war on terror” took President George W. Bush’s approval to dizzying heights, and Iraq probably won him the 2004 election. True to form, Mr. Putin’s approval ratings have soared since the Ukraine crisis began.

No doubt it’s an oversimplification to say that the confrontation in Ukraine is all about shoring up an authoritarian regime that is stumbling on other fronts. But there’s surely some truth to that story — and that raises some scary prospects for the future.

Most immediately, we have to worry about escalation in Ukraine. All-out war would be hugely against Russia’s interests — but Mr. Putin may feel that letting the rebellion collapse would be an unacceptable loss of face.

And if authoritarian regimes without deep legitimacy are tempted to rattle sabers when they can no longer deliver good performance, think about the incentives China’s rulers will face if and when that nation’s economic miracle comes to an end — something many economists believe will happen soon.

Starting a war is a very bad idea. But it keeps happening anyway.

 

The U.S. recurring malaise

Until the U.S. institute real universal healthcare, get rid of the guns, adopt a sincere and decent policy towards the Palestinians, combat the poverty issues underlying racism, nobody in Europe is going to listen to them. And rightly so. Now, here you will, dear reader, protest that nothing of the above has to do with the editorial's focus on economic policy. In which case you would be wrong. They all do.

===================================
The Opinion Pages| Editorial

Europe’s Recurring Malaise


Monday, May 5, 2014

The shame of China!

China has no business suppressing the Uighurs - check that: of course, it's all business, imperialist business, dating back to the 19th and 20th century mindsets of proto-Stalinist history, mindsets unfortunately, many world leaders and people are still stuck in. Situations, not made easier by the casual land-divisions of conquerors of the past century.


The Opinion Pages| Op-Ed Contributor

A Uighur Father’s Brave Fight

 
 

BLOOMINGTON, Ind. — The last time I saw my father was on Feb. 2, 2013. We were at the international airport in Beijing, about to board a flight to America for him to spend a year as a visiting scholar at Indiana University. I was 18, and was coming along for a few weeks to help him settle in.
 
We had checked in and were waiting as our passports were inspected. The guards closely examined my father’s documents, then typed information into their computers. Suddenly, security agents arrived and pulled us out of the line. We were put into a small room, without food or a bathroom. The security officers forbade my father from boarding the plane, but they let me go. I cried, but my father insisted that I go.
 
He told me to be strong, and never to cry in front of others. He told me never to let anybody think that I was weak, or that the Uighur people were weak.
 
I don’t know when, or if, I will see him again.
 
My father, Ilham Tohti, an economist and writer, is an outspoken advocate for our people, the Uighurs —Turkic Muslims whose home has traditionally been in present-day northwest China. He’d criticized the Chinese government on his website, which has since been shut down. He’d given interviews to Western reporters after disturbances on July 5, 2009, in which scores of people died in ethnic clashes, and thousands of Uighurs were detained, in Xinjiang Province, in China’s northwest.
Since that summer, our family was put under house arrest without explanation, questioned by the authorities, and had phone conversations bugged. When I called my father, I would hear a clicking sound on the line. My father would joke, “Your old Uncle Police is coming.” Twice, I came home from school to an unexpectedly empty house — my family had been forced to leave town for a few days. Last November, while my father and two younger brothers were en route to the airport to meet my grandmother, a security vehicle rammed into their car and an officer threatened to kill my family.
After that, my father told me, “You are still so young now I don’t want you to get involved. But just know that what I am doing is the right thing.”
 
Many Uighurs are angry about the large migration of Han Chinese from other parts of China into Xinjiang, and the perceived threat to our traditions, language and culture. A very small number of Uighurs have been linked to violent incidents, most recently, a bombing and knife attack at the train station in Urumqi, the capital of Xinjiang, on Wednesday.
 
In a visit to Xinjiang last week, China’s president, Xi Jinping, promised “decisive actions” against “terrorist attacks” by separatist groups. But the government has failed to consider the grievances expressed by people like my father — who has never advocated violence and has called only for equality and respect for the Uighur people and all peoples of China.
 
Three months ago, on Jan. 15, there was a knock on my door in Indiana. A friend of my father’s was outside. He told me that my father had been arrested. From my smartphone, I found out my father was in jail. I was in such shock I forgot to cry.
 
I couldn’t get in touch with my family for five days. When I did, my stepmother told me that my father had been arrested in front of my brothers, ages 4 and 7. No one would tell her where he was being held. It took more than a month before she received an arrest warrant. It revealed that he had been taken to a detention center in Xinjiang — thousands of miles from our home in Beijing — and charged with “separatism.”
Anyone who knows my father knows this accusation is absurd. My father loves his country, and has never advocated violence. His website published writings in Chinese, Uighur, Tibetan and English, with the aim of helping our Han Chinese neighbors better understand China’s minority nationalities. His aim was understanding, and fairness. He is the sort of person the Chinese government should want to work with, not imprison. If he is guilty of anything, it is of speaking uncomfortable truths.
When I was little, my father would pick me up from school, and we’d sing together on our way home. My brothers can’t sing with my father as I once did. They still have nightmares of watching him being dragged away while police officers tore our home apart. Other kids in the neighborhood won’t play with them anymore. When I call them from America, they ask tearfully if they’ll see me again. I don’t know what to tell them.
 
I’m not scared. My father is strong, brave and, above all, honest. He protected me for 18 years. Now it is time for me to tell the truth about who he is and what he stands for, and to do my best to protect him while he sits in a jail far from home.
 
Jewher Ilham, a student at Indiana University, will accept the 2014 PEN/Barbara Goldsmith Freedom to Write Award on behalf of her father, Ilham Tohti, on May 5 in New York City.