Treasury Targets Sinaloa Cartel Narcotics Distribution Network Under The Kingpin Act

Mexican troops operating a
counter-drug checkpoint

WASHINGTON – The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced the designation of a key Sinaloa Cartel lieutenant, Martin Guadencio Avendano Ojeda, his two brothers and two companies located in Mexico pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act).

 

“Today’s action aims to disrupt the ability of Martin Avendano Ojeda’s drug distribution network and its money laundering businesses to generate funds for the Sinaloa Cartel,” said OFAC Director Adam Szubin. “These actions build on Treasury’s ongoing efforts to identify and disrupt the financial pathways exploited by the Sinaloa Cartel, Ismael Zambada Garcia, and his lieutenants.” 

Martin Guadencio Avendano Ojeda controls a money laundering and narcotics distribution network based in Culiacan, Mexico, that is supplied by Sinaloa Cartel leader Ismael Zambada Garcia and facilitates the importation of narcotics from Mexico into the U.S. with the assistance of his brothers, Hector Manuel and Sergio Avendano Ojeda, who are also designated today. 

 

Ismael Zambada Garcia and the Sinaloa Cartel were previously identified by the President as significant foreign narcotics traffickers pursuant to the Kingpin Act in 2002 and 2009, respectively. 

 

Treasury also designated Autos Mini, a car dealership in Ensenada, Baja California owned by Martin Guadencio Avendano Ojeda, and Autodromo Culiacan, an auto race track located in Culiacan, Sinaloa owned by Martin and his brother Hector Manuel Avendano Ojeda. 

 

As a result of today’s action, U.S. persons are prohibited from engaging in transactions with the designees and any assets they may have under U.S. jurisdiction are frozen. This action was supported by the Drug Enforcement Administration (DEA) and Internal Revenue Service and is the latest in ongoing efforts by OFAC to apply financial pressure to Mexican drug trafficking organizations and to pursue those who profit from drug trafficking.

 

“DEA and our partners, to include the Government of Mexico, continue to pursue the highest levels of the Sinaloa Cartel, as well as their business associates, financial backers, and those who profit from drug trafficking, violence and corruption,” said DEA Administrator Michele M. Leonhart. “The Cartel amasses a fortune in illicit assets by trafficking drugs to the United States. These Treasury sanctions represent yet another targeted strike against Cartel leadership and the financial networks that fuel the activities of the Sinaloa Cartel.”

 

Internationally, OFAC has designated more than 1,000 businesses and individuals linked to 94 drug kingpins since June 2000.  Penalties for violations of the Kingpin Act range from civil penalties of up to $1.075 million per violation to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines of up to $5 million.  Criminal fines for corporations may reach $10 million. Other individuals could face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.

In Defense of Flash Trading

By James E. Miller

 

It's fascinating to watch footage of a trading floor on Wall Street. Here men and women spend hours with their eyes glued to computer monitors while furiously calculating trades that often yield small profits or minimal losses. In the case of Swiss bank UBS trader Kweku Adoboli, it can result in a $2 billion loss and an unfortunate incarceration. The risks run high as trading requires a sizeable amount of dexterity and concentration to be successful in a network of like-minded profit seekers. Still, there is an underlying beauty to the process, as thousands (perhaps millions) of individuals coordinate their knowledge on the allocation of limited resources throughout the world.

 

Nobel laureate Friedrich Hayek dedicated much of life's work (brilliantly summed up in his classic essay "The Use of Knowledge in Society") showing us how knowledge and expertise are widely dispersed throughout society and can never reside in a single mind. That is to say, while individuals may use their own expertise and labor to create, they will never be in full possession of all available knowledge to account for the nuances of market and societal demands. The same concept applies to a government composed of fallible men — much to the dismay of statist ideologues such as Elizabeth Warren.

 

The limit of individual knowledge is what provided the initial need for social cooperation. Primitive man banded together with others, not under the auspices of creating one great state, but as a desire to utilize more resources and raise their own standard of living. Out of this grew the division of labor and… (Read more)

 

Source: Mises.org

First Cigarettes, Now Bacon and Eggs

By Ralph Reiland

 

You knew it was coming.

 

First they came for the cigarettes, then Hank Williams Jr. got knocked off Monday Night Football for being politically incorrect, and now they're coming for the butter.

 

Denmark, on October 1, put a $1.29-per-pound tax on all foods that hit 2.3 percent in saturated fats. That's on top of a 25 percent surcharge imposed last year by Denmark's food police on all ice cream, candy, sugar, soft drinks and chocolate.

 

So now it's cupcakes being added to Denmark's targets for hiked taxes, plus bacon, whole milk, shortening, avocados, whipped cream, sausages, sardine oil, nuts, egg yolks, meat drippings, hydrogenated oils, seeds, cheese, dried coconut, cod-liver oil and skin-on ducks.

 

And they're not even that fat in Denmark. The obesity rate in Denmark is 13.4 percent, lower than the European average of 15.5 percent, and way lower than the obesity rate in United States — 33.8 percent for adults and 17.5 percent for children and adolescents aged 2 through 19, according to the Centers for Disease Control and Prevention.

 

"Today, more than half the residents of New York City and nearly 40 percent of our public school students are overweight, many of them seriously so," reports foodnavigator-USA.com.

 

There's a food director at the Confederation… (Read more)

 

Source: Mises.org

Rand Paul: $16 Trillion Missing???

Dear Lover of Liberty,
 
I ran for the U.S. Senate to end the federal government’s out-of-control spending and solve our debt crisis.
 
But that can't be done until we tackle the source of the problem: the unaccountable Federal Reserve.
 
As long as Ben Bernanke keeps printing money, Barack Obama will keep spending it.
 
You and I need to end that right now.
 
And just like during my campaign, the establishment is stacked against us.  But look at what has already been accomplished with you in our corner!
 
Please take a few moments to read this message from Campaign for Liberty Vice President Matt Hawes and support C4L in this vital effort to rein in the Federal Reserve.
 
For Liberty,
 
Rand Paul
U.S. Senator, Kentucky

Advice from a burglar

Dear Lover of Liberty,
 
Imagine that a nearby neighborhood has experienced a recent devastating rash of burglaries, where the victims have been completely cleaned out.
 
Now, picture one day getting a letter from the burglar, who just wanted to give you a list of "recommendations" to improve home security in your own neighborhood.
 
Some of the steps include:                    

-   leaving all of your windows and doors unlocked;

-   turning off all the lights whenever you're not going to be home;
-   putting all of your most valuable possessions in one location.
 
The sad truth is, the seemingly improbable scenario you're imagining right now isn't far off from the reality taking place this week in Washington, D.C.
 
And, to make things worse, the ones getting the letter will take the proposals seriously.
 
According to a Politico article, Federal Reserve Chairman Ben Bernanke is planning to send Congress a list of "legislative recommendations" this week on what they can do to help "fix" the housing crisis.
 
You read that right.
 
The same Fed that has robbed America of its prosperity over the years is going to tell us how we can have a more secure economy and clean up the mess they made.
 
It's not enough that since the Fed's creation in 1913, what someone was able to buy with $1.00 that year would now cost them $22.81.
 
It's not enough that taxpayers have had to foot the bill so they can bail out Wall Street, international elites, and their other allies.
 
It's not enough that they put you and me on the hook for over $16 trillion - more than the national debt - at the height of the financial crisis.
 
They just can't stop interfering with our lives.
 
But there’s a way we can fight back - by countering Ben Bernanke's "recommendations" with one of our own.
 
Call Congress at (202)224-3121 and urge your representative and senators to support and work for roll call votes on the Audit the Fed bill (H.R. 459/S. 202).
 
It's time to hold Bernanke and his Fed cronies responsible for their actions.
 
After helping crash our economy, and then digging our nation even deeper into trouble, they really seem convinced we should still take their "advice" seriously.
 
As Congress hears from Ben Bernanke, make sure your representative and senators also hear from you - with a real solution to help return our country to prosperity.
 
In Liberty,
 
Matt Hawes
Vice President
 
P.S. Ben Bernanke just can't help himself, and he really seems convinced we should listen to his "solutions" to clean up a mess the Fed helped create.
 
It's time to stop the Federal Reserve from robbing our nation of its prosperity in almost complete secrecy. 
 
Please, contact Congress today at (202) 224-3121and urge your representative and senators to support and work for roll call votes on the Audit the Fed bill (H.R. 459/S. 202). 
 
And, if you're able, I hope you'll chip in $10 to Campaign for Liberty so we can continue to keep the pressure on Congress in support of real solutions to this economic crisis.
 
Source: E-letter from C4L

Chinese Company Trying to Drive Up Prices

October 21, The Register – (International) Chinese giant halts rare earth shipments to hike prices. China's largest rare-earth producer, the state-owned Baotou Iron and Steel Group, is stopping rare earth shipments to the United States, Japan, and Europe, for a month starting October 19 in an attempt to drive up prices.

 

DailyTech reported the Baotou Group also plans to buy rare earth metals to raise demand and further increase prices. Rare earths are used in many high-tech components, such as disk drive magnets, lenses, and lasers. Lower prices for Chinese-mined rare earths caused China to gradually become the world's largest rare earth provider, controlling 95 to 97 percent of world production. The assumption behind the stoppage is China wants to increase production of goods that use rare earth metals, such as magnets. More money is made using rare earths in finished goods than in mining the minerals… (Read more)

 

Source: The Register via Homeland Security Daily Open Source Infrastructure Report, October 24 2011

Rethinking the Gold Bubble

By James E. Miller

 

There has been a lot of speculation recently on whether or not gold is in a bubble.  With Federal Reserve chairman Ben Bernanke announcing "Operation Twist" last month, gold and other commodity prices have fluctuated erratically.  Immediately following the "Twist" announcement, prices of both plummeted.  Gold then stabilized a few days later.  To make sense of these phenomena, one must utilize Ludwig von Mises's lesson that history must be interpreted with logic and rational deduction rather than empirical evidence alone.

 

As the Austrian business-cycle theory teaches, artificially cheap credit, not backed by real savings, creates intertemporal discoordination in production involving scarce resources that ultimately results in malivestment.  As Roger Garrison explains,

 

“An artificial boom is an instance in which… (Read more)

 

Source: Mises.org

Treasury Announces Sale of Seven SBA 7(a) Securities

WASHINGTON – Today, the United States Department of the Treasury announced the sale of seven Small Business Administration (SBA) 7(a) securities executed through a Bid Wanted in Competition (BWIC) for approximately $58.0 million, which represents overall gains and income of approximately $1.3 million for those SBA 7(a) securities.  The closing date for the seven securities is expected to occur on or about October 24, 2011. 

 

SBA 7(a) securities are comprised of the portion of loans guaranteed by the Small Business Administration which finance a wide-range of small business needs, including working capital, machinery, equipment, furniture, and fixtures. 

 

Treasury originally invested in 31 SBA 7(a) securities with a value of approximately $368 million.  Those securities were comprised of 1,001 loans from 17 different industries, including retail, food services, manufacturing, scientific and technical services, healthcare, educational services, and others.  Treasury has now sold a total of 23 securities for approximately $271.7 million, representing overall income and gains of approximately $7.5 million.  After the closing, Treasury will continue to hold 8 SBA 7(a) securities. 

 

Treasury acquired its SBA 7(a) securities portfolio under the Troubled Asset Relief Program (TARP).  Treasury purchased the securities in order to help restart the flow of credit to small businesses.  Purchasing securities from participating "pool assemblers" enabled them to purchase additional small business loans from loan originators.  Since Treasury began purchasing SBA 7(a) securities, the SBA 7(a) market has recovered, as exhibited by new pool issuance volumes returning to pre-crisis levels. 

 

The disposition of these SBA 7(a) securities is part of Treasury's ongoing efforts to wind down TARP.  The Obama Administration will continue its strong commitment to ensuring that small businesses have the capital they need to create jobs and strengthen economic growth through the implementation of the Small Business Jobs Act and a number of other critical programs.

 

EARNEST Partners, which has acted as Treasury's Financial Agent for the SBA 7(a) securities portfolio, will continue to execute the securities disposition through broker-dealers on behalf of Treasury.  Prospective purchasers of SBA 7(a) securities held by Treasury should contact EARNEST Partners by e-mailing UCSBTeam@earnestpartners.com or by calling (404) 815-8772.

Rothbard Revises the History of the Great Depression

By Paul Johnson

 

The Wall Street collapse of September–October 1929 and the Great Depression which followed it were among the most important events of the 20th century. They made the Second World War possible, though not inevitable, and by undermining confidence in the efficacy of the market and the capitalist system, they helped to explain why the absurdly inefficient and murderous system of Soviet communism survived for so long. Indeed it could be argued that the ultimate emotional and intellectual consequences of the Great Depression were not finally erased from the mind of humanity until the end of 1980s, when the Soviet collectivist alternative to capitalism crumbled in hopeless ruin and the entire world accepted there was no substitute for the market.

 

Granted the importance of these events, then, the failure of historians to explain either their magnitude or duration is one of the great mysteries of modern historiography. The Wall Street plunge itself was not remarkable, at any rate to begin with. The United States economy had expanded rapidly since the last downturn in 1920, latterly with the inflationary assistance of the bankers and the federal government. So a correction was due, indeed overdue. The economy in fact ceased to expand in June, and it was inevitable that this change in the real economy would be reflected in the stock market.

 

The bull market effectively came to an end on September 3, 1929, immediately the shrewder operators returned from vacation and looked hard… (Read the full article)

 

Source: Mises.org

Libertarians to Occupiers: Crony capitalism is the problem

WASHINGTON - Libertarian Party Chair Mark Hinkle released the following statement:

 

"I have been following the Occupy protesters, who call themselves the '99%', with interest.

 

"It's true that 99% of Americans do not enjoy the special benefits of crony capitalism. Crony capitalism is very different from real capitalism. In crony capitalism, government hands out special favors and protections to politically well-connected businesses.

 

"The TARP bailouts, Solyndra, and the military-industrial complex are all facets of crony capitalism.

 

"Libertarians love free markets and hate crony capitalism.

 

"Unfortunately, hypocritical Republican politicians have taught a lot of Americans to think that 'free markets' means freedom for government and big business to engage in crony capitalism.

 

"That's not what free markets are. A free market is where the government leaves businesses alone, does not attempt to pick winners and losers, does not stifle competition, does not hand out corporate welfare, and does not absolve businesses of liability for their actions. Most of our economy today does not resemble a free market at all.

 

"It's unfortunate that so many businesses today go to the government begging for handouts and special treatment. I wish they wouldn't. But the real problem is the politicians who choose to give those favors to them, at everyone else's expense.

 

"I hope the Occupy protesters will start to direct their anger away from Wall Street and big businesses, and toward our government, which has done so much to destroy free markets and entrench crony capitalism."

 

For more information, or to arrange an interview, call LP Executive Director Wes Benedict at 202-333-0008 ext. 222.

 

The LP is America's third-largest political party, founded in 1971.  The Libertarian Party stands for free markets, civil liberties, and peace. You can find more information on the Libertarian Party at our website.

 

P.S.  If you have not already done so, please join the Libertarian Party. We are the only political party dedicated to free markets, civil liberties, and peace. You can also renew your membership. Or, you can make a contribution separate from membership.

Trade Agreements Finally Poised to Create Jobs

After almost 1,000 days of sitting on three job-creating Free Trade Agreements (FTAs) with Colombia, South Korea and Panama, President Obama finally submitted the FTAs to Congress on October 3rd.[1] Only two days after receiving the FTAs from the President, the House Ways and Means Committee passed all three with bipartisan majorities.[2] Less than a week later, the Senate Finance Committee also passed all three FTAs with bipartisan majorities,[3] and on October 12th, both the House and Senate are scheduled to vote on all three FTAs -- less than 10 days after presentation by the President.

 

Trade with our current FTA partners supports almost 18 million U.S. jobs.[4] When the U.S. enters into new trade agreements, exports to those countries have historically grown fourfold in the first five years.[5] With 80 percent of the world’s purchasing power outside the U.S.,[6] trade agreements are necessary for future U.S. growth. President Obama’s delay has cost Americans hundreds of thousands of good jobs during a time of economic hardship.[7]

 

Korea Free Trade Agreement

The Korea Agreement will increase U.S. exports by $10-11 billion per year.[8] In 2010, Korea was the fifth-largest market for U.S. agricultural goods. This FTA will eliminate most Korean tariffs and quota tariffs, and open many sectors to U.S. exports, including autos, which had limited market access traditionally.[9] Increased U.S. exports to Korea would vastly outweigh increased Korean imports.[10]

 

Colombia Free Trade Agreement

The Colombia Agreement will increase U.S. exports by more than $1.1 billion per year.[11] Currently, U.S. goods face an average 12.5 percent tariff going into Colombia; this FTA will eliminate the majority of those tariffs immediately and eventually remove 99 percent of the tariffs.[12] Historically, Colombia has been the largest U.S. agricultural market in Latin America; however, U.S. exports fell 50 percent between 2008 and 2010 as U.S. exporters waited for this FTA while other nations entered into agreements with Colombia.[13] The Colombia FTA will result in a $2.5 billion increase in the U.S. GDP.[14]

 

Panama Free Trade Agreement

The Panama Agreement will increase U.S. exports of grain to Panama by 61 percent, and exports of cars and light trucks by 43 percent.[15] This FTA will eliminate the majority of Panamanian tariffs on American products immediately and eventually remove 99 percent of the tariffs.[16] American agricultural exports to Panama will increase by 20-46 percent.[17]

 

These three trade agreements will provide American exporters the same benefits foreign competitors already possess. Korea and Colombia already have, or are negotiating, trade agreements with other nations, including the EU, Canada, and each other.[18] Failure to implement U.S. trade agreements could result in $40 billion worth of exports lost to our competitors.[19] We must act; on a level playing field, American can compete and win.

 

After fast action by Congress, we will be left with a lingering question: How many American jobs were lost in the nearly 1,000 days that the President played politics with the Free Trade Agreements?

 

________________________

 

1 Statement from President Obama on the Submission of the Korea, Colombia, and Panama Trade Agreements, October 3, 2011, http://www.whitehouse.gov/the-press-office/2011/10/03/statement-president-obama-submission-korea-colombia-and-panama-trade-agr.

2 Camp Statement on Committee Approval of Free Trade Agreements, http://waysandmeans.house.gov/News/DocumentSingle.aspx?DocumentID=263129.

3 The Colombia FTA passed Committee 18-6 and both the Panama and Korea FTAs passed by voice vote, http://finance.senate.gov/hearings/hearing/?id=611b68e1-5056-a032-52e9-e785d6525dd1 beginning at 74:30.

4 “Opening Markets, Creating Jobs: Estimated U.S. Employment Effects of Trade with FTA Partners,” by Laura M. Baughman and Joseph F. Francois, May 14, 2010, U.S. Chamber of Commerce, http://www.uschamber.com/sites/default/files/reports/100514_ftajobs_full_0.pdf.

5 “Myths and Facts: Trade Agreements, Deficits, Jobs and Growth,” http://www.chamberpost.com/2011/05/myths-and-facts-trade-agreements-deficits-jobs-and-growth.

6 Letter from National Association of Manufacturers to the President’s Council of Advisors on Science and Technology, April 20, 2010, http://www.nam.org/~/media/D3A22734DDDB4249AA61E6AD1A7B78E6/PCASTfinal.pdf.

7 “Trade Action – or Inaction: The Cost for American Workers and Companies,” by Laura M. Baughman and Joseph F. Francois, September 15, 2009, U.S. Chamber of Commerce, http://www.uschamber.com/sites/default/files/reports/uscc_trade_action_inaction_study.pdf.

8 “The Proposed U.S.-South Korea Free Trade Agreement (KORUS FTA): Provisions and Implications,” CRS Report RL34330, October 4, 2011, http://www.crs.gov/Products/RL/PDF/RL34330.pdf.

9 “Agriculture in Pending U.S. Free Trade Agreements with South Korea, Colombia, and Panama” CRS Report R40622, October 6, 2011, http://www.crs.gov/Products/R/PDF/R40622.pdf.

10 “U.S.-Korea Free Trade Agreement: Potential Economy-wide and Selected Sectoral Effects” USITC Publication 3949, September 2007, http://www.usitc.gov/publications/docs/pubs/2104F/pub3949.pdf.

11 “Proposed U.S.-Colombia Free Trade Agreement: Background and Issues,” CRS Report RL34470, October 4, 2011, http://www.crs.gov/Products/RL/PDF/RL34470.pdf.

12 “U.S.-Colombia Trade Promotion Agreement: Potential Economy-wide and Selected Sectoral Effects” USITC Publication 3896, December 2006, http://www.usitc.gov/publications/docs/pubs/2104F/pub3896.pdf.

13 “AFBF Advocates Passing FTAs at World Trade Month Event,” American Farm Bureau Federation, May 24, 2011, http://www.fb.org/index.php?action=newsroom.news&year=2011&file=nr0524.html.

14 “U.S.-Colombia Trade Promotion Agreement: Potential Economy-wide and Selected Sectoral Effects” USITC Publication 3896, December 2006, http://www.usitc.gov/publications/docs/pubs/2104F/pub3896.pdf.

15 “The Proposed U.S.-Panama Free Trade Agreement” CRS Report RL32540, October 6, 2011, http://www.crs.gov/Products/RL/PDF/RL32540.pdf.

16 “U.S.-Panama Trade Promotion Agreement: Potential Economy-wide and Selected Sectoral Effects” USITC Publication 3948, September 2007, http://www.usitc.gov/publications/332/pub3948.pdf.

17 “Agriculture in Pending U.S. Free Trade Agreements with South Korea, Colombia, and Panama” CRS Report R40622, October 6, 2011, http://www.crs.gov/Products/R/PDF/R40622.pdf.

18 Information on Free Trade Agreements available at the World Trade Organization’s Regional Trade Agreements Information System, http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx.

19 “Trade Action – or Inaction: The Cost for American Workers and Companies,” by Laura M. Baughman and Joseph F. Francois, September 15, 2009, U.S. Chamber of Commerce, http://www.uschamber.com/sites/default/files/reports/uscc_trade_action_inaction_study.pdf.

Where Google Gets Its Power

By James E. Miller

 

On September 21, 2011, Google executive chairman Eric Schmidt faced a hailstorm of criticism from senators and rival CEOs alike at a hearing of the Senate Judiciary Committee's Antitrust, Competition Policy, and Consumer Rights Subcommittee. According to Nextag (who?) CEO Jeffrey Katz, "Google rigs the results" of searches to give preferential treatment to its own businesses. Yelp (who, again?) CEO Jeremy Stoppelman claimed, "Google is no longer in the business of sending people to the best destinations on the Web. It has everything to do with generating more revenue." Senator Mike Lee of Utah charged the search engine of having "clear and inherent conflict of interest."

 

Two questions come immediately to mind. First, who cares about Google's business practices? If you disagree with how Google runs its incredibly popular search engine, don't patronize it. There is no need for paternalistic bureaucrats to intervene in such a simple matter. If my local pizza shop bombards me with advertisements for other local businesses every time I walk through its doors, I will think twice about picking up lunch from there next time.

 

Second, is Google's behavior really that unexpected? After all, it is a business pursuing a profit. The better question to ask is why wouldn't Google show preferential treatment to its other business ventures on its own search engine? It doesn't take a… (Read the full article)

 

Source: Mises.org

Treasury Designates Iranian Commercial Airline Linked to Iran's Support for Terrorism

WASHINGTON – The U.S. Department of the Treasury announced today the designation of Iranian commercial airline Mahan Air pursuant to Executive Order (E.O.) 13224 for providing financial, material and technological support to the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). Based in Tehran, Mahan Air provides transportation, funds transfers and personnel travel services to the IRGC-QF.

 

“Mahan Air’s close coordination with the IRGC-QF – secretly ferrying operatives, weapons and funds on its flights – reveals yet another facet of the IRGC’s extensive infiltration of Iran’s commercial sector to facilitate its support for terrorism,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen.  “Following the revelation about the IRGC-QF’s use of the international financial system to fund its murder-for-hire plot, today’s action highlights further the undeniable risks of doing business with Iran.”

 

Mahan Air provided travel services to IRGC-QF personnel flown to and from Iran and Syria for military training. Mahan Air also facilitated the covert travel of suspected IRGC-QF officers into and out of Iraq by bypassing normal security procedures and not including information on flight manifests to eliminate records of the IRGC-QF travel.

 

Mahan Air crews have facilitated IRGC-QF arms shipments. Funds were also transferred via Mahan Air for the procurement of controlled goods by the IRGC-QF.

 

In addition to the reasons for which Mahan Air is being designated today, Mahan Air also provides transportation services to Hizballah, a Lebanon-based designated Foreign Terrorist Organization. Mahan Air has transported personnel, weapons and goods on behalf of Hizballah and omitted from Mahan Air cargo manifests secret weapons shipments bound for Hizballah.

 

As a result of today’s action, U.S. persons are prohibited from engaging in commercial or financial transactions with Mahan Air and any assets it may hold under U.S. jurisdiction are frozen.

 

Identifying Information:

 

Entity: Mahan Air

AKA: Mahan Travel Company

Address: Mahan Air Tower, 21st Floor, Azadeghan Street, Karaj Highway, P.O. Box 14515-411, Tehran, Iran

Alt. Address:  Mahan Air Tower, Azadegan St., Karaj Highway, Tehran 1481655761, Iran P.O. Box 411-14515

Treasury Sanctions Five Individuals Tied to Iranian Plot to Assassinate the Saudi Arabian Ambassador to the United States

WASHINGTON – The U.S. Department of the Treasury today announced the designation of five individuals, including four senior Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) officers connected to a plot to assassinate the Saudi Arabian Ambassador to the United States Adel Al-Jubeir, while he was in the United States and to carry out follow-on attacks against other countries’ interests inside the United States and in another country. As part of today’s action, Treasury also designated the individual responsible for arranging the assassination plot on behalf of the IRGC-QF.

 

Designated today pursuant to Executive Order (E.O.) 13224 for acting for or on behalf of the IRGC-QF were: Manssor Arbabsiar, a naturalized U.S. citizen holding both Iranian and U.S. passports who acted on behalf of the IRGC-QF to pursue the failed plot to assassinate the Saudi ambassador; IRGC-QF commander Qasem Soleimani; Hamed Abdollahi, a senior IRGC-QF official who coordinated aspects of the plot and oversaw the other Qods Force officials directly responsible for coordinating and planning this operation; Abdul Reza Shahlai, an IRGC-QF official who coordinated this operation; and Ali Gholam Shakuri, an IRGC-QF official and deputy to Shahlai, who met with Arbabsiar on several occasions to discuss the assassination and other planned attacks.

 

Arbabsiar and Shakuri were named by the U.S. Attorney for the Southern District of New York in a criminal complaint unsealed today connected with the IRGC-QF plot. Among the charges brought against them was conspiracy to engage in foreign travel and use interstate and foreign commerce facilities in the commission of murder-for-hire. According to the criminal complaint, Arbabsiar arranged for $100,000 to be sent from Tehran to the U.S. as a down payment for the assassination of the Saudi ambassador. Two wire transfers totaling approximately $100,000 were sent from a non-Iranian foreign bank to a bank in the United States, to the account of the person recruited by Arbabsiar to carry out the assassination.

 

“Iran once again has used the Qods Force and the international financial system to pursue an act of international terrorism, this time aimed against a Saudi diplomat,” said David S. Cohen, Under Secretary for Terrorism and Financial Intelligence. “The financial transactions at the heart of this plot lay bare the risk that banks and other institutions face in doing business with Iran.”

 

As a result of today’s designations, U.S. persons are prohibited from engaging in transactions with these individuals, and any assets they may hold in the U.S. are frozen.

 

Manssor Arbabsiar

Arbabsiar met on a number of occasions with senior IRGC-QF officials regarding this plot and acted on behalf of senior Qods Force officials – including his cousin Abdul Reza Shahlai and Shahlai’s deputy Gholam Shakuri – to execute the plot. During one such meeting, a $100,000 payment for the murder of the Saudi ambassador was approved by the IRGC-QF. After this meeting, Arbabsiar arranged for approximately $100,000 to be sent from a non-Iranian foreign bank to the United States, to the account of the person he recruited to carry out the assassination.

 

Qasem Soleimani

As IRGC-QF Commander, Qasem Soleimani oversees the IRGC-QF officers who were involved in this plot. Soleimani was previously designated by the Treasury Department under E.O. 13382 based on his relationship to the IRGC. He was also designated in May 2011 pursuant to E.O. 13572, which targets human rights abuses in Syria, for his role as the Commander of the IRGC-QF, the primary conduit for Iran's support to the Syrian General Intelligence Directorate (GID).

 

Hamed Abdollahi

Abdollahi is also a senior IRGC-QF officer who coordinated aspects of this operation. Abdollahi oversees other Qods Force officials – including Shahlai – who were responsible for coordinating and planning this operation.

 

Abdul Reza Shahlai

Shahlai is an IRGC-QF official who coordinated the plot to assassinate the Saudi Arabian Ambassador to the United States Adel Al-Jubeir, while he was in the United States and to carry out follow-on attacks against other countries’ interests inside the United States and in another country. Shahlai worked through his cousin, Mansour Arbabsiar, who was named in the criminal complaint for conspiring to bring the IRGC-QF’s plot to fruition. Shahlai approved financial allotments to Arbabsiar to help recruit other individuals for the plot, approving $5 million dollars as payment for all of the operations discussed.

 

Shahlai was designated by Treasury in September 2008 pursuant to E.O. 13438 for threatening the peace and stability of Iraq and the Government of Iraq.

 

Ali Gholam Shakuri

Shakuri is an IRGC-QF officer and deputy to Abdul Reza Shahlai who acted on behalf of Shahlai in support of this plot. Shakuri provided financial support to Arbabsiar and met with Arbabsiar several times to discuss the planned assassination and other attacks. With Shakuri’s approval, Arbabsiar arranged for the $100,000 down payment to be sent from a non-Iranian foreign bank to the United States.

 

Background on Iran's Islamic Revolutionary Guard Corps-Qods Force

The IRGC-QF is the Government of Iran’s primary foreign action arm for executing its policy of supporting terrorist organizations and extremist groups around the world. The IRGC-QF provides training, logistical assistance and material and financial support to militants and terrorist operatives, including the Taliban, Lebanese Hizballah, Hamas, Palestinian Islamic Jihad and the Popular Front for the Liberation of Palestine-General Command.

 

IRGC-QF officers and their associates have supported attacks against U.S. and allied troops and diplomatic missions in Iraq and Afghanistan. The IRGC-QF continues to train, equip and fund Iraqi Shia militant groups – such as Kata'ib and Hizballah – and elements of the Taliban in Afghanistan to prevent an increase in Western influence in the region. In the Levant, the IRGC-QF supports terrorist groups such as Lebanese Hizballah and Hamas, which it views as integral to its efforts to challenge U.S. influence in the Middle East.

 

The Government of Iran also uses the IRGC and IRGC-QF to implement its foreign policy goals, including, but not limited to, seemingly legitimate activities that provide cover for intelligence operations and support to terrorist and insurgent groups. These activities include economic investment, reconstruction, and other types of aid to Iraq, Afghanistan and Lebanon, implemented by companies and institutions that act for or on behalf of, or are owned or controlled by, the IRGC and the Iranian government.

 

The IRGC-QF was designated by Treasury pursuant to E.O. 13224 in October 2007 for its support for terrorism, and was listed in the Annex to E.O. 13572 of April 2011 as the conduit for Iran's support to Syria’s GID, the overarching civilian intelligence service in Syria which has been involved in human rights abuses in Syria.

Fiat Money and the Euro Crisis

By Robert P. Murphy

 

 

In September I participated in the amazing Supporters Summit, held at the prestigious National Academy of Sciences in Vienna, where Eugen von Böhm-Bawerk once lectured. After my visit to Austria, I piggybacked an excursion to adjacent Slovakia where I was surprised to discover a large number of fans of the Mises Institute and Ron Paul.

 

 

Peter Gonda, working through the Conservative Economic Quarterly Lecture Series, had arranged for me to give a lecture, "Money and Banking: the State vs. Market," to two different audiences. (The videos of the lecture and Q&A period are here.) My lecture itself was quite theoretical, discussing the Mengerian/Misesian perspective on the development of money and banking, as well as the Rothbardian perspective on the dangers of central banking and fiat money.

 

 

In the Q&A period of the lecture, and during my interviews with local journalists, however, most people wanted to discuss the Greek debt crisis and the fate of the euro. Yet even here I showed the relevance of the Austrian insights: Germany, Slovakia, and the other frugal countries were only in this mess because the euro was a fiat currency. Had it been backed 100 percent by a commodity such as gold, then the… (Read on)

Source: Mises.org

Libertarians to Bernanke: You're wrong!

WASHINGTON - Libertarian Party Chair Mark Hinkle issued the following statement today:

"Associated Press reports today that Fed Chairman Ben Bernanke is telling Congress they must not cut federal spending sharply. Chairman Bernanke, you're wrong.

"The federal government is currently spending somewhere around 24% of America's total economic output -- even more if you ignore the government's accounting gimmick of 'offsetting receipts.'

"That's far, far too high. 24% of our economy has been displaced out of the productive private sector into the unproductive government sector. The best thing Congress could do right now is to cut spending sharply. That would be good for both our short-term and long-term economic health.

"Chairman Bernanke does not have a fantastic track record. Under his watch, unemployment has increased dramatically, the Fed has more than tripled the money supply, and inflation is rising.

"Chairman Bernanke, I suggest that you read Frederic Bastiat's excellent essay 'What is seen and what is not seen.' I think it would help you reconsider your devotion to Keynesian economics and broken-window fallacies. Government doesn't create economic activity. The American people do."

For more information, or to arrange an interview, call LP Executive Director Wes Benedict at 202-333-0008 ext. 222.

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