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WORLD NEWS

The Panama Papers in Perspective The news here are the incomes and bank accounts of politicians.

A document leak known as the “Panama Papers” on Sunday pulled back the curtain on the secret financial dealings of the world’s rich, powerful and, in some cases, allegedly corrupt.

The papers were leaked to Germany’s Süddeutsche Zeitung and combed through in cooperation with the International Consortium of Investigative Journalists (ICIJ) and other publications. They purport to document the dealings of the Mossack Fonseca law firm, which appears to have helped wealthy clients establish shell companies in Panama, a rare remaining bastion of bank secrecy.

Other media outlets, including The Wall Street Journal, have investigated over the years the sources and disposition of the wealth of some of the individuals and families mentioned in these reports. But this leak offers a rare, comprehensive view and could yield new insights into global financial flows.

The scale is eye-popping. Longtime friends and associates of Russian President Vladimir Putin channelled $2 billion through Panama over the years, ICIJ says in its report on the documents. A Kremlin spokesman described the report as “Putinphobia.” A family member of Chinese President Xi Jinping allegedly has a Panama connection, as do the Saudi king and the son of Malaysian Prime Minister Najib Razak. Mr. Xi’s brother-in-law and the Saudi government declined to comment to ICIJ, while Mr. Najib’s son told the group he had used a Panamanian company “for international business.”

Some Western leaders also are mentioned in the leaks, including Iceland’s Prime Minister Sigmundur David Gunnlaugsson, and several former British members of Parliament as well as the deceased father of Prime Minister David Cameron. ICIJ says it has found evidence that some 140 leaders and politicians, and potentially hundreds of other individuals, established companies in Panama over the nearly 40 years for which it has obtained records. CONTINUE AT SITE

‘C’ Is for Corruption The Clintons are the Brazilianization of American politics. By Bret Stephens

Postcards from yesterday’s countries of the future:

Brazil: President Dilma Rousseff of the Workers’ Party faces impeachment on charges of cooking government books. Corruption investigations are ongoing in cases involving former President Lula da Silva and the presidents of both houses of Congress. Inflation is in double digits and the economy contracted by 3.8% last year.

In 2009, the Economist magazine praised Brazil for “smart social policy and boosting consumption at home,” predicting its economy would overtake Britain’s after 2014.
Turkey: Recep Tayyip Erdogan was in Washington last week, where the Turkish president’s security detail made diplomatic history by beating up protesters outside his speech at the Brookings Institution. A 2013 corruption scandal, implicating dozens of members of Mr. Erdogan’s ruling AKP party, including two of his children, fizzled after the government purged 350 police officers investigating the affair.

In 2009, Hillary Clinton described Turkey as “an emerging global power.” Financial Times columnist Philip Stephens (no relation) gushed that Turkey “sets a powerful democratic example to the rest of the Muslim world.”

China: A leak of 11.5 million documents from Panama-based law firm Mossack Fonseca—instantly dubbed “the Panama Papers”—implicate relatives of President Xi Jinping along with other top officials of sheltering fortunes in offshore tax havens. Mr. Xi is supposed to be leading an anticorruption campaign. CONTINUE AT SITE

The Lesson of Lahore By Herbert London

In a statement that reveals yet again how out of touch the administration is, Josh Earnest, White House spokesman, said that the massive suicide bombing in Lahore, in which 70 people were killed and about 300 injured, didn’t simply target Christians since many Muslims were victims as well.

Yet the terrorist organization that launched the attack and is a Taliban splinter group, Jamaat-ul-Ahrar, said it specifically targeted Christians celebrating Easter in the park. The same militant group also took responsibility for the twin bombings of a Christian church in Lahore last year. Christians account for two percent of Pakistan’s total population.

Admittedly most of those killed were Muslims, and the loss of innocent life whether Muslim or Christian, is to be lamented. However, the U.S. State Department did not respond to the aftermath of the attack as one specifically targeting Christians.

This attack underscored the precarious position of Pakistan’s minorities and the significant fact that, despite increased military vigilance, extremists are still capable of staging wide-scale assaults. Prime Minister Sharif announced recognition of holidays celebrated by Pakistan’s minorities – the Hindu festival of Holi as well as Easter. Unfortunately, if the Taliban members got the message, they chose to ignore it.

Speaking to the bereaved who lost a son in battle during the Civil War, President Abraham Lincoln noted, “I pray that our Heavenly Father may assuage the anguish of your bereavement, and leave you only the cherished memory of the loved and lost, and the solemn pride that must be yours to have laid so costly a sacrifice upon the alter of freedom.”

Europe Contemplates Life After America Officials wake up to the fact that the U.S. under Obama is no longer a reliable guardian against chaos.By John Vinocur

Disillusionment with Barack Obama coupled with concern that his legacy could help put Donald Trump in the White House has now entered respectable European political discourse. The notion reflects profound doubts at Europe’s core about a country with both a president who broke his word and failed to attack Syria for its use of poison gas—damaging American credibility as the West’s ultimate recourse to justice by military intervention—and a leading candidate for the White House whose campaign resounds with brutality, bigotry and ignorance of the world.

Norbert Roettgen, chairman of the German Bundestag’s foreign-affairs commission, pointed to a possible Obama-begets-Trump link last week. Mr. Roettgen, a member of Chancellor Angela Merkel’s Christian Democratic party, said the situation meant U.S. allies in Europe and elsewhere were right to express their serious concern about America.

“Paradoxically, Trump is completely inward-looking,” Mr. Roettgen told me. “But he touches on a question of American pride. It’s there that many voters, in terms of the U.S. role in the world, feel that the country has lost considerable ground under Obama. What they see is Obama’s weakness. For example, his allowing the Russians to militarily establish the upper hand in Syria.”

Although polls late last year showed strong French support for sending ground troops within an international coalition to fight Islamic State, and Mrs. Merkel has said “military efforts” are needed as the first step in defeating the Islamist terrorists, Mr. Obama hasn’t dealt convincingly and head-on with the challenge.

“The damage is done,” said a senior European security official during an hour’s conversation after the murderous March 22 terrorist attacks in Brussels. Over these past years, he made clear to me, America’s credibility as a reliable guardian against chaos has been broken.

“The United States’ relative power has decreased in relation to Russia and China,” the official said. “You can only play the American [guardian’s] role when you have communality at home. But I’m not sure the United States is ready to restore this or is able to. Vladimir Putin is present at the places where America and Europe are weak.” CONTINUE AT SITE

ISIS in Europe: How Deep is the “Gray Zone”? by Giulio Meotti

Among young European Muslims, support for suicide bombings range from 22% in Germany to 29% in Spain, 35% in Britain and 42% in France, according to a Pew poll. In the UK, one in five Muslims have sympathy for the Caliphate. Today more British Muslims join ISIS than the British army. In the Netherlands, a survey shows that the 80% of Dutch Turks see “nothing wrong” in ISIS.

Even if these polls and surveys must be taken with some caution, they all indicate a deep and vibrant “gray zone,” which is feeding the Islamic jihad in Europe and the Middle East. We are talking about millions of Muslims who show sympathy, understanding and affinity with the ideology and goals of ISIS.

How many Muslims will this ISIS virus be able to infect in the vast European “gray zone”? The answer will determine our future.

In the 1970s and ’80s, Europe was terrorized by a war declared by Communist armed groups, such as the Germany’s Baader Meinhof or Italy’s Red Brigades. Terrorists seemed determined to undermine democracy and capitalism. They targeted dozens of journalists, public officials, professors, economists and politicians, and in Italy in 1978, even kidnapped and executed Italy’s former prime minister, Aldo Moro.

The big question then was: “How deep is the ‘gray zone’?” — the sympathizers of terrorism in the industrial factories, labor unions and universities.

In the last year, the Islamic State’s henchmen slaughtered hundreds of Europeans and Westerners. Their last assault, in Brussels, struck at the heart of the West: the postmodern mecca of NATO and the European Union.

One Year After the Iran Nuclear Deal Don’t be fooled. The Iran we have long known—hostile, expansionist, violent—is alive and well. By Yousef Al Otaiba

Saturday marked one year since the framework agreement for the Joint Comprehensive Plan of Action—the nuclear deal with Iran—was announced. At the time, President Obama said this agreement would make “the world safer.” And perhaps it has, but only in the short term and only when it comes to Iran’s nuclear-weapons proliferation.

Sadly, behind all the talk of change, the Iran we have long known—hostile, expansionist, violent—is alive and well, and as dangerous as ever. We wish it were otherwise. In the United Arab Emirates, we are seeking ways to coexist with Iran. Perhaps no country has more to gain from normalized relations with Tehran. Reducing tensions across the less than 100-mile-wide Arabian Gulf could help restore full trade ties, energy cooperation and cultural exchanges, and start a process to resolve a 45-year territorial dispute.

Since the nuclear deal, however, Iran has only doubled down on its posturing and provocations. In October, November and again in early March, Iran conducted ballistic-missile tests in violation of United Nations Security Council resolutions.

In December, Iran fired rockets dangerously close to a U.S. aircraft carrier in the Strait of Hormuz, just weeks before it detained a group of American sailors. In February, Iranian Defense Minister Hossein Dehghan visited Moscow for talks to purchase more than $8 billion in Russian fighter jets, planes and helicopters.

In Yemen, where peace talks now hold some real promise, Iran’s disruptive interference only grows worse. Last week, the French navy seized a large cache of weapons on its way from Iran to support the Houthis in their rebellion against the U.N.-backed legitimate Yemeni government. In late February, the Australian navy intercepted a ship off the coast of Oman with thousands of AK-47s and rocket-propelled grenades. And last month, a senior Iranian military official said Tehran was ready to send military “advisers” to assist the Houthis. CONTINUE AT SITE

DAVID GOLDMAN; ALICE IN TRUMPERLAND

“There’s a trade war on with China, and we’re losing it,” radio talk show host Laura Ingrahamhectored Sen. Ted Cruz, who opposes legislation to punish China for alleged currency manipulation. “Ted, you’re on the wrong side of history on this issue,” Ingraham added. Ms. Ingraham somehow had made her way to the wrong side of the looking-glass, where everything is backwards.

For those of us on the right side of the looking-glass, that is, in the real world rather than Trumperland, the opposite is the case: China’s real effective change rate (the trade-weighted exchange rate adjusted for differences in inflation) is twice as high as it was 20 years ago, and 40% higher than it was in 2008. China’s currency has been going up, and not down.

As it happens, China’s exports to the US have barely grown since the 2008 crisis. The chart below shows annualized growth of US imports from China over a rolling five-year interval. Until the 2008 recession US imports from China were growing at annual rates of 15% to 30%. Growth during the past five years has been barely above 3%.

The reason China’s real effective exchange rate rose so much is that China effectively pegged its currency to the US dollar. The dollar has risen by 25% on a trade-weighted basis since early 1914, when the Federal Reserve announced it would raise interest rates. Only after the US dollar rose by 25% (and the Chinese currency rose with it) did China allow its currency to fall slightly against the dollar–because the Chinese currency had risen massively against every other currency in the world.

The jump in the value of China’s currency due to China’s refusal to let its currrency fall against the dollar did enormous damage to China’s exports. In an Oct. 27, 2014 study for Reorient Group in Hong Kong, I showed that changes in the Chinese yuan’s real effective rate accurately predicted changes in Chinese exports with a three-month lag.

Peaceful PEGIDA UK March Takes Place In Birmingham see note please

Good news: The PEGIDA Movement – Patriotic Europeans Against the Islamization of the West – is growing in Europe and leader Tommy Robinson, who has led the charge against Muslim sex grooming/enslavement of British girls, appears to have recovered from a recent assault in which he sustained head injuries. (He is definitely on the Muslim “Hit” Parade). Bad news: Police cordoned off yesterday’s PEGIDA demonstration in Birmingham to keep it out of the purview of the public. Only a few hundred people showed up for the demonstration. Janet Levy

BIRMINGHAM, United Kingdom – Hundreds of ‘anti-Islamisation’ protesters descended Birmingham today for the second march of the PEGIDA UK movement, fashioned on the German marches that have attracted up to 18,000 people to the streets of Dresden.

Organiser Tommy Robinson appeared alongside anti-Sharia campaigner Anne Marie Waters amongst others. But the real star of today’s proceedings was Lutz Bachmann, the founder of the global PEGIDA movement which now has branches in 27 countries.

The march began at Birmingham International Airport’s train station, where the crowd amassed under banners opposing mass migration into Europe, as well as flags from a number of different countries, include Israel and the Czech Republic. The LGBT ‘Rainbow’ Flag also flew.

Pierre Bergé Slams Designer “Islamic Fashion” Scarlett Conlon

WHILE a growing number of fashion brands are creating fashion collections aimed at Muslim women, Pierre Bergé has taken issue with designers creating Islamic clothing.

“I am scandalised. Creators should have nothing to do with Islamic fashion,” the 85-year-old told French radio station Europe 1 yesterday, reports The Guardian. “Designers are there to make women more beautiful, to give them their freedom, not to collaborate with this dictatorship which imposes this abominable thing by which we hide women and make them live a hidden life. These creators who are taking part in the enslavement of women should ask themselves some questions.”

Bergé went on to say that the only reason that labels – which include Marks & Spencer, Uniqlo and Dolce & Gabbana – create such collections is “to make dough and nothing else”, and he would tell them to: “Give up the dough. Have convictions. Defend your convictions.” The French businessman – who founded Yves Saint Laurent alongside the eponymous designer, who was also his life partner – stressed that his comments are not Islamaphobic. “I live in Morocco most of the time, I am really not Islamophobic,” he said.

His comments come as Laurence Rossignol, France’s women’s rights minister, criticised Marks & Spencer’s full-body swimsuit, suggesting that the British retailer is “bowing to religious conservatives,” according to The Daily Telegraph.

“What’s at stake is social control over women’s bodies,” she told RMC radio. “When brands invest in this Islamic garment market, they are shirking their responsibilities and are promoting women’s bodies being locked up. It is irresponsible on the part of these brands. All those who participate in how society is represented have a responsibility.”

Marks & Spencer responded to the comments, saying that it “provides a wide range of quality swimwear”, and that it has sold the full-body swimsuit “for a number of years and it is popular with our customers internationally”.

David Singer: Politics Precede Humanity In Brussels Bombings

The European Union has been increasingly expressing its growing antagonism towards Israel by

1. imposing specific labelling laws for goods produced by Jews emanating from Judea and Samaria (the West Bank)

2. building structures in Area C of Judea and Samaria (the West Bank) without consent or authorisation by Israel – which exercises full administrative and security control over this area under the Oslo Accords to which the European Union is a signatory.

Positions such as these taken by the European Union – coupled with a growing tide of Jew-hatred in Europe during the past decade – create an atmosphere of hostility towards the Jewish State and can legitimise public expressions of opinion in Europe that would otherwise have been deemed politically incorrect and subjected to widespread criticism.

A case in point seems most likely to have occurred following the tragic events in Brussels on March 22 when 32 people were killed and 340 wounded in two terrorist attacks at Brussels Zaventem airport terminal and the city’s underground metro system.

Belgium’s federal hotline – set up by the Belgian Interior Ministry to take calls after these attacks – has fired an operator who told a caller that Israel does not exist and should be called Palestine instead.

The caller told the operator that he was a volunteer for the city of Antwerp’s Jewish Coordination Committee. Their message was recorded and the full English translated transcript follows:

XXX: Good afternoon, my name is XXX. I am a volunteer in the Jewish Coordination Committee of Antwerp. We are contacted by persons… we have two persons of the Jewish community that were hurt in the attacks in the airport.

Crisis Centre: Yes sir.

XXX: They are prepared to be transported back to Israel. Our volunteers are busy with it and take care of everything but we received information from the hospital that we need special papers from the police that they can be released. Is this correct and to who should we ask that? Can you tell me more about that?