an autodidact meets a dilettante…

‘Rise above yourself and grasp the world’ Archimedes – attribution

Archive for the ‘crime’ Category

Laws are more important than constitutions, get it?

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not entirely relevant to this piece, but worth considering…

Watching proceedings from afar against Trump and his blundering bovver boys, I become more agitated than I probably need to, but I quite often find my frustration directed more at the prosecutors than at Trump’s mostly contemptible allies. For example, MSNBC commentators and many of their guests, not to mention Nancy Pelosi, are still claiming that the crime here is bribery, when it’s clearly extortion, which is generally considered a more serious crime.

So what’s the difference? It should be obvious. A bribe generally involves appealing to a person’s venality. It’s usually presented in positive terms, as in ‘I’ll make you rich beyond the dreams of avarice if you just do this dirty job for me’. Extortion however is presented in more menacingly negative terms – ‘if you don’t do this dirty job for me, you’ll really really regret it’. Now, it’s notable that the infamous phone call from Trump was relatively polite, which is why he’s trying to characterise it as ‘perfect’. After all, by his boorishly bullying standards, it probably was. The near-polite asking of a favour, then, might be characterised as a bribe, but what was happening behind the scenes, directed by Trump, was definitely extortionate. That’s why focussing on the phone call as the main incident is definitely a mistake, and that’s why Giuliani, Mulvaney and Trump himself need to testify, and should of course be made to, and jailed immediately if they refuse, as should happen in any nation worthy of respect.

But this would only happen if the matter was being dealt with in court – where of course it should be dealt with.

Americans are profoundly worshipful of their constitution and their founding fathers. Indeed they seem to have been fine, upstanding, as well as colourful fellows. It’s my view, though, that given current circumstances, they’d have been the first to realise that the constitutional provisions for dealing with a law-breaking, rogue President were wholly inadequate. This isn’t surprising – experience is the best teacher in these matters, and the US experience has been mostly of Presidents priding themselves on being ‘gentlemen’. This is the only silver lining of this presidency, that it has exposed manifold inadequacies of the constitutional presidency system. 

Constitutions are guides to how governments are to be constituted. I don’t think the framers of this or any other constitution ever imagined that later followers would expect that it constituted the entire law under which the head of state operated. That, to me, is virtually proven by the vague and minimalist treatment of the legal liabilities of the President in the US Constitution. Surely the founding fathers took it for granted that the President would be subject to all the laws of the land that any other citizen would be subject to. How could it be otherwise for someone in leadership, someone expected to set an example? Even minor infractions would be seen as ‘the thin end of the wedge’, and generally this is the case under the Westminster system. 

The worst argument that could possibly be given for the kind of immunity granted to the US President is that he’s too powerful to be charged with a crime. You might call this the Putin argument (or the Stalin, Ghengis Khan or Ramses II argument, or name your favourite dictator). The argument hasn’t improved over the last 3000 years. 

Written by stewart henderson

November 21, 2019 at 4:32 pm

pardonnez-moi, mais c’est ridicule

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Today I heard the American legal expert and editor of Lawfare, Ben Wittes, assuring a cable news host that the President had an absolute right, or ‘ability’, to pardon anyone he wishes. This came up in a discussion of the Roger Stone guilty verdict recently handed down.

Of course I noted that there was no sign of shame or embarrassment in Wittes’ pronouncement, which I will take on trust to be true. Nor did I expect to observe such a sign. I’ve become ‘Americanised’ to a certain degree in the past couple of years. But I also feel a need to resist this.

As has been noted by many people, Stone has been a close personal friend and associate of Trump for many decades. So, will he pardon Stone?

To be asked to enter the mind of the current US President, on this or any other matter, would be the ultimate ‘hardship assignment’, but still it’s interesting to speculate why he may hesitate to pardon Stone. First, Stone is no longer of any use to him – and that is generally Trump’s foremost consideration. Second, Trump is conscious, however vaguely, of going ‘too far’ in certain directions, though he sometimes errs on this front. Third, he appears to be a creature of the ‘eternal present’, in which case his failure to pardon Stone would be due to indifference rather than hesitation. His new ‘buddies’ are – or possibly were – the three amigos, and so it goes.

But to return to the Presidential pardoning powers – it seems to take an outsider to note how totally outrageous and immoral they are. A pardoning power, granted, is an important power for a government to have, but within very strict limitations. In Australia the power is vested in the Governor-General, the Queen’s representative, but of course he or she is instructed by the government of the day, through the principal law officer, the Attorney-General, in consultation with the rest of government. It’s a rarely used power in Westminster-style governments, as it should be. A notable recent example of its use is the so-called ‘Alan Turing Law’, which pardoned thousands of gay men, living and dead, who have been prosecuted over decades for behaviour now deemed legal. However, in the US the Presidential pardoning power has often been abused, as in the case of Richard Nixon (not sufficiently condemned), and more recently by Donald Trump’s pardoning of Libby and Arpaio. The general US population has been troublingly insouciant about this power. To have it vested in one person (there is an ‘Office of the Pardon Attorney’ but I doubt that Trump recognises or has even heard of it) is of course typical of that superhero-worshipping nation, but it’s another failure of a system that Trump will surely be seeking to exploit in his battle to secure ultimate dictatorship.

Meanwhile, there are always new developments in the runaway trainride of this current presidency. A new name, David Holmes, may have entered the lists of history, in a small way. Of course all of these names – the names of people who actually work hard for their nation and for positive international relations – deserve to remembered better than the current US President, but life never was fair.

Written by stewart henderson

November 17, 2019 at 4:21 pm

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USA – suffering for its own failure

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Marie Yovanovitch – under threat

The commentariat is divided, though perhaps not entirely on partisan lines, on the treatment of the American President.

It’s becoming clear that, in the USA and elsewhere, people are inhabiting their own social media bubbles. There’s no doubt this is a massive change. Twenty years ago, the term ‘social media’ didn’t exist. Today, when you walk down the street, or catch public transport, you will see people clutching their social media connection machine in their hands as if their life depended on it, and much of the time they’re fully engaged with it. I’m not sure that this social media world can be divided clearly on left/right political lines, but it’s fairly clearly affecting the political understanding of vast numbers of people.

The commentariat, however, more or less represent the intelligentsia, and we expect them to be less in thrall to social media. Yet the division is striking, even if, it seems, uneven. I may be biased, I’m not sure, but it seems to me that those disparaging and mocking, or claiming to be bored by the career diplomats testifying to their frustration and alarm regarding the covert operation to extort the Ukraine government, are in a minority, though a loud one. At the same time, the US President was smearing, via Twitter, the former US ambassador to Ukraine, Marie Yovanovitch, as she was about to testify. As all the evidence shows, Yovanovitch was removed from her post by Trump, and threatened by him in a phone call to the Ukrainian President, saying ‘she’s going to go through some things’. The President described this phone call as ‘perfect’.

All of this is well known, as is the reason for Yovanovitch’s removal. She was a hindrance to the extortion plot. 

So why isn’t the President in prison, as should and would occur in every reasonably regulated democratic country? The case is easy to prove, it is admitted by the culprit, and involves a number of first-hand witnesses. This morning I heard a member of the commentariat lay this all out in some detail, then lament that it’s ‘very unfortunate and appalling’, and so forth. And of course many others agreed. Their helplessness is sad, indeed tormenting, to behold.

The President should be held without bail, because of his known compulsion for witness tampering and intimidation, until the date of his trial, but of course this isn’t happening, not because the President is immune from prosecution while in office, but because – despite the massive opportunity for any holder of presidential office to pervert the course of justice – there is no clear law regarding how to treat a criminal President. That this is so, is damning. Waiting for that President to leave office is not a solution, as should be abundantly clear, even to a ten-year-old. 

What continually astonishes outsiders like myself is that the commentariat within the USA seems perversely unaware of this failure in the US politico-legal system. With great power – and the power of the US president is, IMHO, far too great – must come great legal responsibility. It’s one of the many failings of the American presidential system that this is not made abundantly clear though black letter law, and plenty of it. Depending on the Constitution, brilliant and wondrous though it might be, is insufficient. 

Written by stewart henderson

November 16, 2019 at 12:18 pm

America’s disgrace – presidential criminality in plain view

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George Kent reads his opening statement to the House

As an outsider looking in, I’m appalled by the US Presidential system, and the licence given in that country to its head of state. I’ve learned over the past few years of watching the slow train wreck that is this presidency, that the US head of state is granted a level of immunity that should never be granted to any individual in a democracy. This is a total disgrace, and seems to have infected the judgment of many observers and commentators. I suspect they’re blinded by the power granted to the US head of state, and by the ease with which anyone, no matter how corrupt and incompetent, can become the head of state (providing they have sufficient funds and influence). Presidents in the USA seem to be idolised beyond normality, in a land of Superheroes. This love of Superheroes, in film and elsewhere, is a somewhat juvenile trait, and a dangerous one. Its dangers have generally gone unnoticed because most US heads of state have been cognisant of, and respectful of, the rule of law. The problem has become evident with the advent of a charlatan posing as the greatest Superhero of all, and who is perfectly willing to take advantage of the power granted to him to realise any of his whims and desires. 

Just today, at the end of the first day of public impeachment hearings, I’ve listened to the opening statement of career diplomat George Kent. His statement highlighted for me the enormous damage done to a sovereign state, Ukraine, by those working for the personal interests of this President. And yet I heard a panel of journalists, I believe from CBS, more or less agree that there was wrong-doing which however wasn’t impeachable. I couldn’t help but feel that this commentary was shocking and disgraceful.

Impeachment is a process derived from the United Kingdom, where it is now obsolete. It has never been a part of the Australian system and should, I think, be removed from any democratic system, and replaced by solid, clear law. Hopefully Americans will wake up to this one day, though I’m hardly sanguine about it. 

Americans – and I’m really talking here about the intelligentsia – seem overly obsessed with their constitution. Some are even describing this latest crime of their President as bribery, simply because that crime gets a specific mention in the constitution, which is preposterous. The eighteenth century constitution doesn’t go into great detail about the crimes a President might commit, nor should it, because it should be evident that the President would be held accountable for any law-breaking, to the same extent as any other US citizen. To accept or facilitate any other outcome for the head of state would itself be a form of corruption or criminality.

The US President, and his acolytes, notably Rudi Giuliani, are clearly guilty of extortion – demanding a thing of great value for the President, with menaces, or via coercion. This crime has essentially been proven. This particular case is also at the very high end for this type of crime, as it involves the extortion of an entire nation, an ally of the USA, endangering countless lives and a nation’s freedom. A very hefty prison term should be demanded for all involved. This should not be in any way controversial.

Failing this – impeachment? To describe this as a poor substitute would be the greatest understatement in American history. The democratic world watches with bemusement tinged with contempt.

Written by stewart henderson

November 14, 2019 at 2:39 pm

learning about Trump

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Getting rid of the dictator is only a first step in establishing a free society. The dictatorship must also be disassembled.

George Ayittey

More about how I became drawn in to the Trump horrorshow

Written by stewart henderson

October 28, 2019 at 2:55 pm

Trump as dysfunctional crime machine

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One way to look at Trump is not so much as anything human but as a machine for generating crime – but as a somewhat dysfunctional one, in that everything he does is crooked but not all of it rises to the level of crime – which is I think, one of his major failings, and I’m sure he’s disappointed about it. For example he lies as others breathe, but not all his lies are crimes, so they don’t get the attention he wants them to get. In interviews or press conferences he doesn’t present talking points, he presents lying points. He doesn’t play golf, he cheats at golf. He doesn’t have advisors, he has echo-chambers.
But he’s also undisciplined, and sometimes falls down on the job and blurts out the truth. That’s when he gets into trouble. It’s like the ghost in his machine, and it scares the bejesus out of him.

Written by stewart henderson

October 13, 2019 at 1:49 pm

Posted in crime

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getting roolly rich in the USA 1: Jeffrey Epstein

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Epstein’s two islands in the Caribbean – Little St James is immediately below the Great one

The Jeffrey Epstein case, in terms of women, girls and exploitation, is something I’m far too squeamish to explore, and of course it’s very very sad and disgusting, but my interest was also piqued by the news that he was/is a hedge fund manager (but maybe not), with mansions and an island and oodles of moolah to invest in all sorts of science projects. This raised many questions. Was he obnoxiously rich to begin with, like little Donny Trump? And what is a hedge fund, and can you legitimately make millions from one?

I’ve never been rich and I’ve never invested in anything, unless you call giving money to Oxfam or UNHCR an investment, so I’m really starting from scratch here. The first definition I’ve found is that a hedge fund is ‘an offshore investment fund, typically formed as a private limited partnership, that engages in speculation using credit or borrowed capital’. So, if this is true, why invest ‘offshore’, and how are you able to do this with money you don’t really have or haven’t earned? I suspect I won’t find easy answers to these questions. The website Investopedia (which sounds immediately suss!) starts with another definition: ‘Hedge funds are alternative investments (?!) using pooled funds that employ different strategies to earn active return, or alpha, for their investors’. Alpha! What a lovely musical note that hits for investors (especially combined with ‘male’). But the mention of pooled funds (e.g. mutual funds and pension funds, as well as hedge funds) might explain how you can make money even if you have little personally to invest. Investopedia also tells us that hedge funds ‘are generally only accessible to accredited investors’, because they’re less regulated than other funds. And we all know that the wealthy are very very keen to have less regulation and oversight than what the Yanks call ‘regular folks’

However, it does seem that, to be an ‘accredited investor’, it helps to be already rich. The term applies to financial institutions such as ‘investment banks’ and corporations as well as individuals. Needless to say, this is a world of which I know absolutely nothing. All I’ve really heard about it is negative – high rollers, corruption, anti-government arrogance and the like – which says much about where I get my information from. Even so, the most objective analysis raises questions – for example, the Australian Corporations Act of 2001 ‘defines “sophisticated investor” [basically synonymous with ‘accredited investor’] so as to exclude them from certain disclosure requirements.’ That rings alarm bells for me – you’d think that these heavy investors would be the last people to be excluded from disclosure. The Act also says that such investors require an accountant’s certificate to the effect that they have a minimum of $2.5 million in net assets or a gross income of $250,000 over each of the previous two years. Presumably they’re not asked about how they acquired such income/assets. And the financial bar is considerably lower in the USA.

Hedge funds have grown in popularity, and as a proportion of the asset management field, over the years. After the GFC of 2007-8 there was an attempt (probably feeble) to rein in the sector. The essential hedge fund strategy (think ‘hedging your bets’) is to receive a positive return regardless of bear or bull markets, by spreading the risk in some clever non-risky way. If you get to be a hedge fund manager (which some reports have claimed Epstein to be, though Wikipedia doesn’t mention this in a fairly comprehensive bio) you get to keep a certain percentage of invested funds for yourself – generally a management fee (maybe 2% of assets) and a performance fee (a substantial percentage of any annual increase in net asset value). You can see how disclosure is essential in payment of such fees, and why the temptation to cook the books would be high.

Epstein seems to have ‘risen’ from humble beginnings. His mother was a ‘homemaker’ and one-time school aide, and his father was a groundsman and gardener, yet Epstein is described, at various periods in his career from the early eighties, as an options trader, a financial consultant, a limited partner (at the dodgy investment bank Bear Stearns), a finance manager and other such vagueries – all despite a patchy scholastic record (but as an autodidact and dilettante I certainly don’t hold that against him). However, one very interesting item stands out….

Back in the eighties, Epstein became an associate of one Steven Hoffenberg, who hired him as a consultant for his company, Tower Financial Corporation (TFC). Epstein was paid $25,000 a month, which to me is an absurdly huge amount for anyone to be paid, though in this world it’s probably peanuts. Even before joining TFC (a collection agency that bought up other people’s debts – and if you think that’s dodgy, read on), Epstein had been bruiting it about among the crooked rich that he was a ‘high-level bounty hunter’, sometimes working for governments or the super-rich to recover embezzled funds, sometimes working for clients to secure embezzled funds. He and Hoffenberg became very close, flying around the world to do their dodgy deals, done not so dirt cheap, but in 1993 TFC collapsed and was exposed as one of the biggest Ponzi schemes in US history, with some $475 million of investor funds vanishing. Epstein, though, had already left the company and managed to escape without charge. Hoffenberg was sentenced to 20 years’ jail, and has always claimed that Epstein was intimately involved in the scheme. In fact, Wikipedia’s brief entry on Hoffenberg ends with this fascinating line:

In July 2019, he claimed that the American financier Jeffrey Epstein was his co-conspirator in the Ponzi scheme.

That’s right now, folks. Presumably he has the evidence for that – so why wasn’t Epstein prosecuted way back then?

Anyway, it appears, surprise surprise, that Epstein’s criminality isn’t restricted to his treatment of the opposite sex, which makes you wonder how many super-rich types who don’t draw attention to themselves vis-a-vis sexual exploitation can be shown to be criminals. And how is it possible to buy what is presumably an American island to use as a tax haven?

Tax havens are always described as ‘offshore’. That’s to say, not a part of the country in which you want to avoid paying taxes. The US site Investopedia underlines its dodginess by providing plenty of info on tax havens (hey man, we’re just tellin’ stuff, not selling’ stuff, I mean, peace off man), as well as providing a list which includes the British (but not the US) Virgin Islands. Epstein owns two of the US Virgin Islands, Great Saint James and Little Saint James, where he has one of his mansions. Great Saint James cost him $18 million in 2016, pretty cheap for an island I would’ve thought, and I can’t find the price he paid for Little Saint James back in 1998. This tiny island was his principal centre of sexploitation, aka Orgy Island by the cognoscenti.

The USA has an international reputation as a bad actor in respect of tax disclosure. With monumental hypocrisy, it implemented the Foreign Account Tax Compliance Act in 2010, requiring or ‘forcing’ (dog knows how) financial firms everywhere in the world to report accounts held by US citizens to their IRS, while at the same time refusing to comply with the OECD’s Common Reporting Standard – the only major nation to do so. To be clear about this the USA demands that other countries share information about US citizens’ offshore dealings, but refuses to share the same information with those countries about foreign investment in the USA. As a result, the USA is arguably now the world’s biggest tax haven. How this works exactly for US citizens like Epstein I’m not sure at this point, but the USA has become, especially over the last decade, one of the easiest places in the world for successful tax evasion, especially through the use of LLCs or shell companies. We’re finding this out through examination of Trump’s criminal activities, but of course I’m far from understanding the detailed nature of LLCs, offshore trusts and the like. I need to lern more.

I’ll end this piece – almost – with a quote from an organisation and site that’s the polar opposite of Investopedia, the Tax Justice Network:

The United States, which has for decades hosted vast stocks of financial and other wealth under conditions of considerable secrecy, has moved up from sixth to third place in our index. It is more of a cause for concern than any other individual country – because of both the size of its offshore sector, and also its rather recalcitrant attitude to international co-operation and reform. Though the U.S. has been a pioneer in defending itself from foreign secrecy jurisdictions, aggressively taking on the Swiss banking establishment and setting up its technically quite strong Foreign Account Tax Compliance Act (FATCA) – it provides little information in return to other countries, making it a formidable, harmful and irresponsible secrecy jurisdiction at both the Federal and state levels.

Of course, none of this clearly explains how Epstein ill-got the wealth to be tax-liable in the first place. Certainly the Ponzi scheme he seems to have gotten away with was one, possibly the main, source, but he seems even before this to have ingratiated himself into the world of dodgy financial entities and personae, presumably through schmoozing and force of personality. Certainly his relationship with Ghislaine Maxwell, daughter of that supremo of repugnant dodginess, Robert Maxwell, is an indication of the world Epstein had become familiar with, a world in which everyone is advising everyone else on how to make money out of nothing and how to retain as much of that money as possible, regardless of anything so inconvenient as the law.

References

https://en.wikipedia.org/wiki/Jeffrey_Epstein

https://en.wikipedia.org/wiki/Hedge_fund

https://www.investopedia.com/terms/h/hedgefund.asp

https://www.investopedia.com/terms/p/ponzischeme.asp

https://en.wikipedia.org/wiki/United_States_as_a_tax_haven

https://www.investopedia.com/terms/t/taxhaven.asp

Home

https://en.wikipedia.org/wiki/Robert_Maxwell

Written by stewart henderson

July 21, 2019 at 2:14 pm