Tag Archives: cia

Ukraine war: inside the complex web of Russia’s warring intelligence agencies

Russian intelligence chief Sergey Beseda and his deputy, Anatoly Bolyukh, were placed under house arrest on March 9. Beseda and Bolyukh oversaw the foreign intelligence branch of the FSB, which is the Russian security service. They were allegedly the main proponents of the assumption that Ukraine would swiftly collapse, which has proved deeply flawed.

But, as has become increasingly clear over many years, Vladimir Putin has become intolerant of opinions that contradict his preferred course of action. So although the intelligence was flawed, Beseda’s claims likely manipulated facts to fit what the Russian president wanted to believe. Having led the foreign intelligence branch since 2009, it is likely Beseda knew what his boss wanted to hear. Yet both he and Bolyukh have taken the blame for the wider invasion failure.

Putin has been living in a virtual bunker. The presidential administration, his primary information source, is a secretive organisation and has been feeding Putin a controlled information flow for over a decade. The institution acts as a gatekeeper to Putin and blocks non-positive intelligence from reaching him.

This twisting of facts to fit a particular worldview is only part of the problem. Another factor is that the different security services compete and undertake their own projects in the hope that this pleases Putin.

The Federal’naya Sluzhba Bezopasnosti (FSB) or Federal Security Service, is one of many agencies. While the FSB is commonly thought of as a domestic intelligence agency, it also operates in other post-Soviet countries, except the Baltic states. Meanwhile the Sluzhba Vneshney Razvedkiis (SVR), or Foreign Intelligence Service is involved in foreign intelligence gathering outside the post-Soviet space. The Federalnaya Sluzhba Okhrany (FSO), or Federal Protective Service, protects high-ranking officials. The Glavnoye upravleniye (GU), or Main Directorate – previously the GRU – is military intelligence.

The Rosgvardiya, or National Guard, which was created in 2016, is not strictly an intelligence agency but is effectively Putin’s praetorian guard. It is increasingly involved in external operations and has a direct line to Putin through its chief, Viktor Zolotov. He was Putin’s personal bodyguard from 2000 to 2013 before becoming minister of internal affairs and head of the internal troops from 2014 to 2016.

Spy v spy

Ostensibly the different Russian security services are like their western counterparts. But the FSB in particular is more carnivorous than its western equivalents, having largely consumed the signal-intelligence service, FAPSI. Putin as a former KGB Officer himself views them as crucial to his personal survival and making Russia great again. In 2020 Russia spent 5.5 trillion roubles (US$69 billion) on the security services. This amounts to 28% of the annual budget or 3.5 times the amount spent on health and education combined.

This comes at a price, though, with Putin demanding results. Each service is aware that they need to come up with the scariest crisis – or intelligence that fits Putin’s worldview – to increase their budget and influence. One example of this scare tactic was FSB chief, Aleksandr Bortnikov, claiming that the 2012 Siberian forest fires were the work of al-Qaeda. Scare tactics and only providing positive information to Putin results in a lack of coherence.

Each security service jealously guards its own territory and views the others with suspicion. This makes working together for a common good difficult. This rivalry is intense, and is built on a combination of mistrust and wanting Putin’s attention. In particular, the FSB appears to have the highest level of mistrust for other services and is constantly sniping at them. Competition also occurs at the intra-service level, with different groups conducting their own policies sometimes to the detriment of the agenda of their own branch.

All this makes for a very confusing picture, which is likely by design. By having inter and intra-service rivalries, the security services are too focused on their own jealousies, rather than other issues. With the war not going to plan there have also been murmurings that some security personnel are considering a coup.

Isolated and out of touch

Increasingly Putin’s inner circle is getting smaller and there is a growing level of mistrust and discontentment both by and against Putin. Rosgvardiya deputy Roman Gavrilov resigned in March over alleged claims of leaking information. Like Zolotov, Gavrilov was part of Putin’s personal bodyguard and when Zolotov tried to intervene, Putin refused to see him.

In the past month, eight generals have allegedly been sacked, in another sign that Putin is growing more isolated. His rambling speech and potted history in the build-up to recognising the independence of the two Donbas people’s republics were from someone who appears increasingly out of touch.

Since the pandemic’s start, Putin was isolated in a bunker with disinfection tunnels and largely sequestered from face-to-face meetings. The March 18 rally at Moscow’s Luzhniki stadium is one of many pointers that Putin remains in – or very close to – a bunker, only appearing for crucial meetings.

The long table in the Kremlin is another sign that Putin fears face-to-face meetings. For years, he has had food tasters. This creates a certain paranoia and the Ukraine conflict – and before it the pandemic – has turbocharged it.

Putin has long believed he is the most informed politician in the world. But this simply is not the case. Like the emperor with no clothes, Putin suffers from a warped reality where only positive information is allowed. This is what makes the current Ukrainian conflict particularly dangerous.

Stephen Hall, Lecturer (Assistant Professor) in Politics, International Relations and Russia, University of Bath

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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‘Addiction to Fossil Fuels Is Mutually Assured Destruction,’ Warns UN Chief

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“Instead of hitting the brakes on the decarbonization of the global economy” amid Russia’s war on Ukraine, “now is the time to put the pedal to the metal towards a renewable energy future,” said United Nations Secretary-General António Guterres.

“The 1.5-degree goal is on life support. It is in intensive care.”

So said United Nations Secretary-General António Guterres on Monday, as he stressed that a swift and just transition to clean energy is necessary to meet the Paris agreement’s objective of limiting global temperature rise to 1.5°C above preindustrial levels—and warned against using Russia’s deadly assault on Ukraine as an excuse to ramp up fossil fuel production worldwide.

“We are sleepwalking to climate catastrophe.”

“The science is clear. So is the math,” the U.N. leader said during a speech delivered at a Sustainability Summit hosted by The Economist. “Keeping 1.5 alive requires a 45% reduction in global emissions by 2030 and carbon neutrality by mid-century.” And yet, “according to present national commitments, global emissions are set to increase by almost 14% in the 2020s.”

“We are sleepwalking to climate catastrophe,” Guterres continued. “Our planet has already warmed by as much as 1.2 degrees—and we see the devastating consequences everywhere. In 2020, climate disasters forced 30 million people to flee their homes—three times more than those displaced by war and violence.”

Just this past weekend, scientists conveyed shock and alarm in response to reports that temperatures at both of Earth’s poles reached more than 50°F above average last week. Peer-reviewed research published on Friday foundthat increasingly frequent and intense wildfires around the globe are exacerbating Arctic warming, which is worsening the conditions that make future blazes more likely.

“Two weeks ago,” said Guterres, citing part two of the U.N.’s landmark climate assessment, “the IPCC confirmed that half of humanity is already living in the danger zone. Small island nations, least developed countries, and poor and vulnerable people everywhere are one climate shock away from doomsday. In our globally connected world, no country and no corporation can insulate itself from these levels of chaos.”

“If we continue with more of the same, we can kiss 1.5 goodbye,” he added. “Even 2 degrees may be out of reach. And that would be catastrophe.”

Making matters worse, said Guterres, “the fallout from Russia’s war in Ukraine risks upending global food and energy markets—with major implications for the global climate agenda.”

“As major economies pursue an ‘all-of-the-above’ strategy to replace Russian fossil fuels, short-term measures might create long-term fossil fuel dependence.”

The United States, United Kingdom, and European Union have moved to restrict imports of Russian fossil fuels in response to Moscow’s military offensive. Although progressives have emphasized that the ongoing invasion should lead to an intensification of efforts to move awayfrom dirty energy, profit-hungry proponents of oil, gas, and coal have seized on surging prices to push for boosting extraction and exports.

Guterres warned that “as major economies pursue an ‘all-of-the-above’ strategy to replace Russian fossil fuels, short-term measures might create long-term fossil fuel dependence and close the window to 1.5 degrees.”

“Countries could become so consumed by the immediate fossil fuel supply gap that they neglect or knee-cap policies to cut fossil fuel use,” he said. “This is madness. Addiction to fossil fuels is mutually assured destruction.”

“As current events make all too clear, our continued reliance on fossil fuels puts the global economy and energy security at the mercy of geopolitical shocks and crises,” added Guterres. “We need to fix the broken global energy mix.”

Noting that “the timeline to cut emissions by 45% is extremely tight,” the U.N. leader stressed that “instead of hitting the brakes on the decarbonization of the global economy, now is the time to put the pedal to the metal towards a renewable energy future.”

His remarks came just hours before the Intergovernmental Panel on Climate Change (IPCC) kicked off a two-week meeting to validate part three of its report, which focuses on the need to drastically slash carbon pollution to avoid the most disastrous outcomes.

Guterres argued that cooperation between the developed and emerging economies of the G20—responsible for 80% of global emissions—is essential to addressing the planetary emergency.

“Accelerating the phase-out of coal and all fossil fuels and implementing a rapid, just, and sustainable energy transition,” he said, is “the only true pathway to energy security.”

Originally published on Common Dreams by KENNY STANCIL and republished under Creative Commons (CC BY-NC-ND 3.0)

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Peter Thiel’s $5 Billion Bombshell: Hubris and Hypocrisy Beyond all Imagining

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ProPublica drops a second monumental article based on treasure trove of IRS, SEC & court data

Excellent reporting of tax injustices among the obscenely rich continues with a huge and revelatory piece on Peter Thiel and his “little” Roth IRA scheme. Going well beyond the previous article that detailed how Bezos, Musk, Buffet and others all use loans secured with share holdings to avoid income, and thus avoid paying tax the “Lord of the Roths” is even more explosive.

While the emphasis of the article on Thiel’s Roth IRA takes on the task of trying to somehow compare an “average” investor’s potential gains with the unimaginable magnitude of Thiel’s windfall, this is something that makes sense as a valid perspective, but the obscenity is nearly lost in the opaque fog of numbers beyond comprehension.

For example: your Peter is basically gifted 1.7 million shares by the company he was one of the founders of (along with Elon Musk and the rest of the so called “PayPal Mafia). That “purchase” costing less than $2000 based on the ridiculous price of $0.001 per share was used to found a Roth IRA.

The engineered numbers were no accident: at the time, in 1999, a Roth IRA account had a maximum allowable contribution amount of $2,000. Since the shares were “below fair value”, the fact of which was admitted by PayPal in an SEC filing from the time just before the company went public, the value increased massively, by 227,490% in the first year. Which increased the value of the paltry $2k up to $3.8 million.

Though obviously not enforced, regulations at the time forbade this kind of “stuffing”. Meaning, the initial trade that launched this scheme was possibly illegitimate, if not unlawful. Or, as ProPublica more kindly phrased it: “Investors aren’t allowed to buy assets for less than their true value through an IRA. “

As a matter of fact, according to the article, the “stuffing” was so successful that no further contributions were ever made into the account after that initial 1999 sum.

Since a Roth IRA allows a person to trade stocks within the account tax free, as long as no withdrawals are made, this large but still comprehensible sum was the start of a 20 year use of the tax statutes to build a fortune of over $5 billion without paying a single penny in tax.

Hitting $870 million in value by 2008, by 2019 the tax free enterprise, built on the less than $2000 initial contribution (stock “purchase”), ultimately ballooned to 96 sub-accounts with holdings of $5 billion.

Ok, so that’s the short summary of the mind blowing numbers. For a more detailed account, by all means visit the original article.

The numbers are outrageous, but the entitlement and arrogance is on a whole other level

The part of the story that should spark outrage is not in the numbers but begins where the almost inhuman greed, hubris and hypocrisy at this good fortune grows apace with the size of the tax free bonanza. Because Peter Tiel is not just any run-of-the-mill untaxed billionaire.

The endlessly expanding windfall he received, tax free, did not engender a mindset of charity or gratefulness at his miraculous providence.

Above: Photo Collage / Lynxotic

Instead Thiel, once the wealth lent him a position of power, preached and pushed the idea that the US government, the same one that he was able to avoid paying taxes to, was guilty of over-taxing people like him (and poor people too).

He spent millions of dollars in an effort to influence Republican politicians and groups that have anti-tax agendas, to change the laws in ways that would add even more advantages to his already preposterously privileged position. Then this: as per ProPublica: “In 2016, he became the rare Silicon Valley titan to endorse Donald Trump.”

And, in an arrogance that is as incomprehensible as the size his effortlessly expanding fortune, he espouses the belief that people like him are entitled to these kind of spoils because, after all, without him we might have to live without PayPal and….wait for it…. Facebook.

Yes, you heard that right. In 2004, Thiel used his IRA to buy $500,000 worth of shares in a, then private, company called Facebook, which was the first big outside investment in Zuckerberg’s soon to be massive monstrosity.

By using his IRA funds to buy shares of the start-up he was able to avoid tax on all the future gains of those shares. (ProPublica, in excellent investigative reporting, uncovered this tidbit by combing though Facebook court documents).

So, again, ostensibly, based on his well known statements, we are not only to congratulate him on his clever method of avoiding any taxation whatsoever on the first gambit with the PayPal shares, but we ought to effusively thank him for helping Facebook to become the dangerous purveyor of surveillance and phantom tollbooth Ponzi empire that is it today?

In perhaps one of the greatest illustrations of how power corrupts, this idea that because he was able to amass a fortune on such a massive scale without the burden of any tax whatsoever, he is somehow a hero to be emulated, is the real reason for us to be outraged.

That an average person might be lucky to turn $2000 into $250,000 over two decades, as was illustrated in detail in the article, while Thiel easily turned it into $5 billion, is outrageous, yes.

But the real “crime” is that it was done with zero benefit to anyone except him and other Silicon Valley insiders at companies like PayPal and Facebook.

Could it be argued that Facebook is a gift to humanity? Well, in 2021 that would be a tough argument to put forth without being laughed out of the room. And PayPal? It’s doubtful that Satoshi Nakamoto has to fear competition from any of the PayPal Mafia (including Mr. Musk) when the crown for greatest financial innovator of the century is awarded.

In a revelation that could have received more page inches, the article also exposes a second, possibly more plausible reason, regarding why Thiel went to great lengths to bankrupt Gawker Media, which he blamed for outing him as Gay. That politically convenient motivation could very well have covered up the real reason:

Again, as per ProPublica:

“In a story headlined, “Give Me Liberty or Give Me Taxpayer Money,” Gawker Media, citing anonymous sources, revealed that Thiel held his Facebook investment in a tax-free Roth.”

Companies built on greed and hubris create nothing and, in the end, die

Thiel believes he will live to be 120 years old. Based on his comments and writings he appears to believe that the world would benefit from that eventuality.

But when looking at the companies he helped to build, and the obscene fortune he was rewarded with for binging them into being, it seems like most of us, after accessing his life’s works and “accomplishments”, would be more thankful for the improbability of that dream coming true.

2087? That will be the year that either Utopia or Oblivion will have arrived for humanity and the planet earth. If by a miracle an earthly Utopia comes to be, it is highly unlikely that PayPal, Facebook or Mr. Thiel will have had any hand in bringing it about.

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