RUTHFULLY YOURS

While America’s adversaries have been increasing their defense budgets and the power of their armed forces, the United States has been doing the opposite.

Although the Senate and House Armed Services Committees passed a bill for 2018 that would exceed President Trump’s defense budget request, there is still the problem of the 2011 Budget Control Act, which caps defense spending at an extremely low level. Modernization has been curtailed significantly.

Unfortunately, there remains a widely held assumption that unless tax reform is “revenue-neutral,” deficits will increase. The trouble with this assumption is that although revenue-neutral tax reform may make the system more efficient or fair, it neither increases government revenue nor generates additional investment in the private sector. The purpose of the new tax-reform plan is to do both: increase revenue and spur economic growth at the same time.

One crucial aspect of the new tax reform bill, unveiled by President Donald Trump and the “Big Six” group of Republican tax negotiators at the end of September, is the potentially positive effect it will have on the US defense budget, which is sorely in need of an increase.

The assertion made by former President Barack Obama during his final State of the Union address in January 2016, that the United States spends “more on our military than the next eight nations combined,” bolstered the belief that America’s national-security needs are beyond being met. However, as a recent Heritage Foundation report reveals, such claims, which have led to the conclusion that the United States allocates an excessive amount to the defense budget, are “disingenuous,” as they “give no consideration to the decisions driving defense spending or the factors contributing to costs across national economies.”

As the Heritage Foundation points out, although “the U.S. military remains the largest and most capable in the world… [t]he security environment in which in which the U.S. military is expected to operate has grown increasingly complex, and national defense resourcing warrants more than a solitary sentence of discussion.”

America’s major military adversaries, Russia and China, pay their soldiers, sailors and pilots far less than America pays the members of its own forces, which enables Moscow and Beijing to spend more on weapons and research. In addition, unlike the U.S., Russia and China are not transparent about their defense spending at best, and lie about it at worst, with the former reportedly “cooking its defense books,” and the latter publishing nothing about its nuclear weapons program. In addition, while America’s adversaries have been increasing their defense budgets and the power of their armed forces, the United States has been doing the opposite. As former US Senator James Talent wrote in 2013:

“…[T]he picture isn’t pretty. Congress and the president [Obama] will probably agree to increase defense spending by a small amount, but they will probably also take money away from future defense budgets. This will allow them to say that they have increased defense spending while in reality the wholesale unraveling of American power will continue.”

In addition — according to USAF Maj Gen Garrett Harencak — during decades of a “procurement holiday,” America failed to upgrade its nuclear-deterrent capabilities.

This is the bad news. The good news is:

“For the first time in nearly 35 years, the United States is back on track to modernize its entire nuclear deterrent. After previously approving the building of 12 new Columbia class submarines and a new B-21 nuclear-capable bomber, the United States has selected two contractors to compete to build the next land-based intercontinental ballistic missile (ICBM) nuclear deterrent. This would be the first new land-based ICBM since the Peacekeeper missile was deployed in 1986 and completes a nuclear modernization effort plan promised by the administration.”

Contrary to the Left’s favorite narrative, any Russia scandal has always been worse for Hillary Clinton than for Donald Trump. Recent revelations confirmed this Tuesday, and even implicated the special prosecutor at the center of the Trump-Russia investigation, former FBI director Robert Mueller.

In 2010, the Obama administration approved a controversial deal giving Russian company Rosatom partial control of Canadian mining company Uranium One (and with it 20 percent of U.S. uranium), just as Russians paid former president Bill Clinton for speeches and Hillary Clinton was secretary of State. To make matters worse, the FBI had already gathered evidence of Russian corruption in the U.S. but kept it secret just when it would have mattered most, The Hill reported Tuesday.

A confidential U.S. witness working in the Russian nuclear industry helped federal agents gather financial records, make secret recordings, and intercept email starting in 2009 that showed Moscow had compromised U.S. trucking company Transport Logistics International, in violation of the Foreign Corrupt Practices Act.

Officials also acquired documents and an eyewitness account corroborating earlier reports that Russian officials had routed million of dollars into the U.S. to benefit the Clinton Foundation just as Hillary Clinton served on the Committee on Foreign Investment in the United States, which endorsed the Uranium One deal.

This racketeering scheme was allegedly conducted “with the consent of higher level officials” in Russia who “shared the proceeds,” The Hill reported.

The Department of Justice (DOJ) did not bring immediate charges upon learning of the corruption in 2010, but kept investigating the matter for nearly four more years, leaving the American public and Congress in the dark.

Knowledge of Russian nuclear corruption on U.S. soil would have been vital to preventing the disastrous 2010 Uranium One deal, but it also might have prevented a lesser known approval in 2011. That year, the Obama administration approved a request from Rosatom’s subsidiary Tenex, allowing it to sell commercial uranium to U.S. nuclear power plants (in addition to reprocessed uranium from dismantled Soviet nuclear weapons sold under the Megatons to Megawatts program).

“The Russians were compromising American contractors in the nuclear industry with kickbacks and extortion threats, all of which raised legitimate national security concerns,” a person who worked on the case told The Hill. “And none of that evidence got aired before the Obama administration made those decisions.”

Robert Mueller, the special counsel in the Trump-Russia investigation, was at the helm of the FBI from 2001 until 2013, so it seems likely he was culpable in keeping this investigation secret — at the very time when it would have been most pivotal for U.S. national security.

A man who may be responsible for allowing tremendous Russian corruption on U.S. soil to continue — and even intensify — during the Obama administration is now leading the investigation into potential Russian connections involving the man who ran for president against Obama’s legacy. Conflict of interest, much?

Before the Obama administration approved Russia’s acquisition of more than 20 percent of America’s uranium supply, the Federal Bureau of Investigation found Russian racketeering involved.

This shocking news is in a must-read investigation by reporters John Solomon and Alison Spann in The Hill on October 17.

“Russian nuclear officials had routed millions of dollars to the U.S. designed to benefit former President Bill Clinton’s charitable foundation during the time Secretary of State Hillary Clinton served on a government body that provided a favorable decision to Moscow,” sources told Solomon and Spann.

But acting FBI investigators at the time – including then-U.S. attorney Rod Rosenstein and Robert Mueller, the man Rosenstein would later choose to investigate possible Russian collusion that helped Donald Trump win the 2016 election – apparently did not share this information about Russia with key members of Congress.

Solomon, Spann, and The Hill might win a Pulitzer Prize for their excellent investigative reporting…if it incriminated Republicans. But since it instead found potential wrongdoing by Democrats, the mainstream media will either ignore or find fault with it.

This investigation points to important issues it does not spell out, so we shall use it as a stepping stone to touch on three of them:

1. The new investigation clearly indicates that Mueller and Rosenstein knew of Russian millions paid to Bill and Hillary Clinton’s foundation. This foundation served as a slush fund that paid for some of her political activities and subsidized her campaign staff before 2016.

This is a priori evidence of Russian influence in American politics – in the form of more than $145 million funneled by Russia to the Clintons. Ms. Clinton ran for president in 2008 and was clearly positioning herself to run again in 2016.

Yet Mueller persists in not investigating Ms. Clinton as a suspect in his fishing expedition that seeks some crime of “election collusion by Russia,” yet to be found, committed only by President Trump. Can Mueller continue stonewalling after this new evidence?

In her latest reinvention, Hillary Clinton has emerged from the woods transformed into a self-styled Cassandra. She travels from sound stage to sound stage, reminding the public that her 2016 loss was not her fault and the Russians who undid her once-promising political career are coming again. This newest reboot is remarkable if only for its extraordinary immodesty. Few have done so much to undermine the fortunes of their ostensible allies, but Hillary Clinton is not done yet. Her vendetta has now led her to sabotage the so-called “Resistance’s” last, best hope for cutting the legs out from under the Trump administration: Robert Mueller’s probe into the Trump campaign’s links to Russia.

Nearly ten months into his presidency, Donald Trump has not stoppedcampaigning against Hillary Clinton—a fact the Clinton surely appreciates if only for the otherwise undeserved relevance it bestows upon her. When asked about the Mueller probe and the charge that his campaign “colluded” with Moscow generally, Trump is fond of deflecting to the Clinton family’s dealings with Russian entities in both a private and governmental capacity. That distraction tends to inspire yawns and rolls of the eyes, but not today. On Tuesday, The Hillrevealed that FBI and court documents allege that the Clintons, the Clinton Foundation, and the Clinton-led State Department under Barack Obama do not have clean hands when it comes to dealings with Moscow.

The Hill reporters John Solomon and Alison Spann’s inquiry found that the FBI began investigating an effort by the Russian government to infiltrate the American nuclear materials industry as early as 2009. “Russian nuclear industry officials were engaged in bribery, kickbacks, extortion and money laundering designed to grow Vladimir Putin’s atomic energy business inside the United States,” they reported.

These reporters were privy to documents revealing the scope of the FBI’s operation, which was extensive and supported the allegation that Moscow had “compromised” a Uranium trucking firm. All of this took place before the Russian energy firm Rosatom secured its first 17 percent stake in the American nuclear materials extraction company Uranium One in 2009. A year later, Rosatom won a majority stake in that company—a deal that had to be approved at the highest levels of the American government and which alarmed observers who fretted the national security implications of that kind of concession to Moscow.

Meanwhile, between 2009 and 2013, the Clinton Foundation was the recipient of four suspicious tranches of donations totaling $2.35 million from Russian-linked sources including Uranium One’s chairman. Former President Bill Clinton personally received half a million dollars for one speech in Moscow from a Russian government-linked investment bank that was promoting Uranium One stock. While the Uranium One deal was under consideration by the Treasury Department, that bank’s analysts were talking up the value of that firm’s stock.

None of these donations were previously disclosed, despite the Clinton Foundation’s written pledge to disclose all donations it received while Hillary Clinton served as Secretary of State. If The Hill’s reporting is accurate, this is dirty money. Their report alleges that eyewitness and written accounts obtained by the FBI confirm that Russian officials were responsible for this influx of cash to the Clintons.

What’s odd about this account, though, is how sluggish the FBI investigation was.The Hill noted that, despite the evidence they had obtained by 2010, the bureau continued its investigation for another four years. In the interim, the Uranium One deal among others benefiting Moscow was approved and implemented by the Obama administration. Bizarrely, the relevant members of Congress were apparently not briefed about the extent of this probe.

Federal appeals judge Alex Kozinski has noted that abusive behavior by prosecutors is reaching “epidemic proportions.” That epidemic will get worse after Tuesday’s ruling by the Second Circuit Court of Appeals absolving prosecutors for using false information to put David Ganek’s hedge fund out of business.

A three-judge panel, led by prosecutorial soft-touch Reena Raggi, overturned a lower court ruling and found that prosecutors and FBI investigators have immunity from Mr. Ganek’s suit seeking damages. The court ruled that immunity applies even though prosecutors falsely claimed Mr. Ganek had traded shares based on what he was told was inside information.

An FBI informant in fact testified that he had never told Mr. Ganek the information had been illegally obtained, and an FBI agent corroborated that testimony. Yet the FBI and prosecutors included the false claim in an affidavit to obtain a warrant for a highly publicized raid on Mr. Ganek’s firm. Mr. Ganek was never charged, but the negative publicity forced him to roll up his Level Global fund in 2011.

Prosecutors deserve some measure of immunity lest they be sued every time they lose a close case. But immunity should not be impunity, and Judge Raggi’s opinion all but provides it by refusing to let Mr. Ganek’s suit proceed to gather evidence about whether prosecutors knew the information was false.

Her opinion says this doesn’t matter because the search warrant against Mr. Ganek’s firm would have been justified even without the false information. Yet the trial judge looked at the same facts and concluded the opposite. Judge Raggi’s ruling means in practice that there is no mechanism for an innocent person like Mr. Ganek to seek redress if a claim is a lie, and no legal remedy.

This is incentive for prosecutors to think they can get away with lying as long as they have other evidence to dress up a warrant. Never mind that in this case the warrant was used to justify a raid on an innocent party and destroy his business.

The Ganek raid and smear were typical of former federal prosecutor Preet Bharara’s method in his assault on Wall Street. The smearing continued even during the oral argument at the Second Circuit. Sarah Normand, an assistant U.S. Attorney, accused Mr. Ganek of participating in “a scheme with regard to many, many pieces of inside information from many public companies.”

This was long after her office had decided not to charge Mr. Ganek. But instead of remorse or an apology, Ms. Normand doubled down on prosecutorial innuendo.

Mr. Ganek could appeal, but the Supreme Court is unlikely to take a case that hangs on such a factual dispute. The Justice Department could discipline the prosecutors for spreading false information, and it ought to investigate whether it was a lie, but Justice is an insider’s club. The only real check on prosecutorial abuse are judges willing to enforce standards of honesty. Judge Raggi has set a standard that will encourage more dishonesty.