The Pronk Pops Show 1012, December 12, 2017, Story 1: Russia’s Attempt To Control and Corner World Uranium Supply Needed For Fuel To Power Nuclear Reactors To Produce Electricity — Greed, Money, Power — Obama’s Administration’s Cover-up of Rosatom’s U.S. Subsidiary Crimes Between 2004-2014 And Bill and Hillary Clinton’s and Clinton Charitable Foundation Pay for Play Racket — Massive Scandal About To Go Nuclear — Videos

Posted on December 14, 2017. Filed under: American History, Banking System, Barack H. Obama, Bill Clinton, Blogroll, Breaking News, Bribery, Business, Coal, Coal, College, Communications, Constitutional Law, Crime, Culture, Currencies, Disasters, Donald J. Trump, Donald J. Trump, Donald J. Trump, Donald Trump, Economics, Education, Empires, Employment, Energy, Extortion, Fiscal Policy, Foreign Policy, Former President Barack Obama, Freedom of Speech, Government, Government Dependency, Government Spending, High Crimes, Hillary Clinton, Hillary Clinton, Hillary Clinton, History, Human, Human Behavior, James Comey, Law, Life, Lying, Media, Natural Gas, Natural Gas, News, Nuclear, Nuclear, Obama, Oil, Oil, People, Philosophy, Photos, Politics, Polls, President Barack Obama, President Trump, Public Corruption, Radio, Raymond Thomas Pronk, Resources, Robert S. Mueller III, Rule of Law, Scandals, Science, Security, Spying, Success, Surveillance/Spying, Tax Policy, Taxation, Taxes, Treason, Videos, Violence, Wall Street Journal, War, Wealth, Weapons, Weather, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

 

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The Pronk Pops Show Podcasts

Pronk Pops Show 1012, December 12, 2017

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Pronk Pops Show 1008, December 1, 2017

Pronk Pops Show 1007, November 28, 2017

Pronk Pops Show 1006, November 27, 2017

Pronk Pops Show 1005, November 22, 2017

Pronk Pops Show 1004, November 21, 2017

Pronk Pops Show 1003, November 20, 2017

Pronk Pops Show 1002, November 15, 2017

Pronk Pops Show 1001, November 14, 2017 

Pronk Pops Show 1000, November 13, 2017

Pronk Pops Show 999, November 10, 2017

Pronk Pops Show 998, November 9, 2017

Pronk Pops Show 997, November 8, 2017

Pronk Pops Show 996, November 6, 2017

Pronk Pops Show 995, November 3, 2017

Pronk Pops Show 994, November 2, 2017

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Pronk Pops Show 992, October 31, 2017

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Pronk Pops Show 990, October 26, 2017

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Pronk Pops Show 988, October 20, 2017

Pronk Pops Show 987, October 19, 2017

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Pronk Pops Show 983, October 13, 2017

Pronk Pops Show 982, October 12, 2017

Pronk Pops Show 981, October 11, 2017

Pronk Pops Show 980, October 10, 2017

Pronk Pops Show 979, October 9, 2017

Pronk Pops Show 978, October 5, 2017

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Pronk Pops Show 975, September 29, 2017

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Pronk Pops Show 973, September 27, 2017

Pronk Pops Show 972, September 26, 2017

Pronk Pops Show 971, September 25, 2017

Pronk Pops Show 970, September 22, 2017

Pronk Pops Show 969, September 21, 2017

Pronk Pops Show 968, September 20, 2017

Pronk Pops Show 967, September 19, 2017

Pronk Pops Show 966, September 18, 2017

Pronk Pops Show 965, September 15, 2017

Pronk Pops Show 964, September 14, 2017

Pronk Pops Show 963, September 13, 2017

Pronk Pops Show 962, September 12, 2017

Pronk Pops Show 961, September 11, 2017

Pronk Pops Show 960, September 8, 2017

Pronk Pops Show 959, September 7, 2017

Pronk Pops Show 958, September 6, 2017

Pronk Pops Show 957, September 5, 2017

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Clinton Uranium Scam

Trey Gowdy Eager To See What The FBI Informant Has To Say Its Very Important

Attorney For FBI Informant Rebuffs Report – Obama, Clinton Uranium One – Story

Pay to Play – Uranium One and the Clinton Foundation

LibertyPen

Published on Nov 9, 2017

In 2009, the Obama administration approved the transferred control of twenty percent of America’s uranium to Russian interests. This deal, which on the face seems contrary to national interest, is examined by focusing on the beneficiaries and following the money. http://www.LibertyPen.com (Excerpts are largely from Fox News, since other networks find it their interest to ignore the story)

FBI Informant in Clinton Uranium One Bribery Case has Video of Briefcases full of Money!

3 House Reps on Uranium Deal. Committees Investigating.

Breaking Now A New Report Documents The Obama FBI Investigated Hillary’s Russian Uranium Deal

Two More Committees Announce Uranium Deal Investigation!

Kazakhstan and Bill Clinton goes there

Clinton Corruption – It Keeps Going, And Going, And Going

Bill Clinton’s Kazakstan Uranium Deal

“Can Hillary Clinton be Arrested?” see what Ben Shapiro Just Said with Judge Napolitano

Uranium One Looms Larger and Larger

Investigation OPENED Into Obama and Hillary’s Crooked Deal!

Obama’s FBI Stopped Hillary Clinton’s INDICTMENTS – Judge Napolitano

CONFIRMED! Jeff sessions is part of hillary Clinton’s corrupt cabal – HANNITY REVEALS

DOJ won’t rule out special counsel to probe Uranium One deal

New Developments In The Uranium One Scandal – Clinton Foundation Money Laundering? – Hannity

Russian Uranium One deal should be investigated: Ben Stein

New Information in the Uranium one Scandal – Hannity

FBI Informant Has Evidence on Uranium One and The Clintons

Reps Jordan & Gaetz To Make Big Announcement Regarding The FBI And Hillary Clinton – Ingraham Angle

The Beginning Of The End For Hillary! Dick Morris TV: Lunch ALERT!

Trump on Russian Uranium allegations: They better look into that

Hannity: Exposing the real Russia collusion

#SeanHannity Destroyed #HillaryClinton and Laid the Groundwork for a Multi-Count Indictment

Rep. Trey Gowdy (R-SC) DESTROYS Hillary Clinton and Dems on Uranium One Scandal

[youtube3=https://www.youtube.com/watch?v=Q7v1fs-T7KE]

Laws potentially broken in Uranium One deal, dossier scandal

FBI takes its time with Clinton-Russia scandal?

What did Russia do with US uranium imports?

Obama-era Uranium One deal strongest evidence of Russian collusion: Rep. DeSantis

House panels launch probe of Obama-era uranium deal

Issa: American people deserve clarity on Russia uranium deal

Why aren’t Dems concerned about the Russia uranium scandal?

Nuclear energy is still cheaper than renewables, says Rosatom boss

How Does Nuclear Power Work?

HOW IT WORKS: Uranium Deposits (720p)

Investigation OPENED Into Obama and Hillary’s Crooked Deal!

Why Russia Wants to Control the World’s Uranium Supply

FBI – Russia Bribed for Uranium Deal, 1843

FBI warned Obama administration about Russian bribery plot

FBI Had Evidence That Russia Bribed Clinton Foundation Before Obama Approved Uranium Deal

BREAKING: FBI Official Unloads On Hillary Clinton This Is Devastating(VIDEO)!!!

Glenn Breaks Down Clinton Connections To The Uranium-Russia Scandal

FBI uncovered Russian bribery plot before uranium deal

FBI Informant Reads A Document On Live TV That Made Hillary Clinton Panicking(VIDEO)!!!

Clinton Foundation Gets Millions In Exchange For Uranium Deal – News Brief

US uranium producers plagued by low prices, scant utility purchasing

Cameco CEO’s Corner – October 2017

Where can you find uranium?

What is Uranium?

How It’s Made Uranium P1

How It’s Made Uranium P2

Top 10 Countries with Highest Uranium Production

How Uranium Becomes Nuclear Fuel

Nuclear Reactor – Understanding how it works | Physics Elearnin

How Nuclear Power Plants Work / Nuclear Energy (Animation)

US Befriends Kazakhstan Dictator, Now World’s Largest Producer of Uranium

Clinton dodges questions about pay-for-play allegations with Clinton Foundation

Pay for play at Hillary Clinton’s State Department?

A glimpse inside operations at the Clinton Foundation

New questions about Clinton Foundation

Clinton Foundation has a RICO Complaint Filed

CLINTON CASH — Director’s Cut — FULL OFFICIAL MOVIE — Bill & Hillary Clinton´s Blur exposed

List of countries by uranium production

From Wikipedia, the free encyclopedia

This is a list of countries by uranium production in 2015.

Rank Country/Region Uranium production (2015)
(tonnes U)[1]
Uranium Production (2011)
(thousands pounds U3O8)[2]
Percentage of
World Production (2015)
 World 60,496 139,513 100
1 Kazakhstan Kazakhstan 23,800 46,284 39.3
2 Canada Canada 13,325 25,434 22.0
3 Australia Australia 5,654 15,339 9.3
4 Niger Niger 4,116 10,914 6.8
5 Russia Russia 3,055 1,516 5.0
6 Namibia Namibia 2,993 11,689 4.9
7 Uzbekistan Uzbekistan 2,385[3] 6,239 3.9
8 China China 1,616[3] 2,150 2.7
9 United States United States 1,256 4,316 2.1
10 Ukraine Ukraine 1,200[3] 2,210 2.0
11 South Africa South Africa 393 2,210 0.6
12 India India 385[3] 1,040 0.6
13 Czech Republic Czech Republic 155 660 0.3
14 Romania Romania 77[3] 200 0.1
15 Pakistan Pakistan 45[3] 117 0.1
16 Brazil Brazil 40[3] 385 0.1
17 France France 2 18 0.0

See also

References

8 Countries With the Largest Uranium Reserves

Where can North Korea get uranium? More places than you think have it — and some might actually be willing to sell this vital nuclear fuel.

Oct 18, 2017 at 6:00AM

A visualization of an atom in a pair of cupped hands.

IMAGE SOURCE: GETTY IMAGES.

If you’ve been following the news, you may think uranium is only used in nuclear bombs and nuclear power plants. But uranium has lots of other uses. Unfortunately, the Fukushima nuclear reactor meltdown in Japan and North Korea’s (and Iran’s) continued push for nuclear weapons show the volatile and dangerous nature of this vital element. What’s even more frightening that uranium’s destructive potential is the fact that several of the countries with the largest uranium reserves could conceivably sell some to North Korea and Iran.

Check out this list of the countries with the world’s top uranium reserves.

The Ranger uranium mine in Australia

THE RANGER URANIUM MINE IN AUSTRALIA’S NORTHERN TERRITORY. IMAGE SOURCE: GETTY IMAGES.

1. Australia

Australia possesses around 30% of the world’s known recoverable uranium reserves. This island nation is the 20th-largest economy in the world and has stable legal and political systems; you might say it’s one of the “nice guys.”

The stability of Australia makes it a great place for miners to operate. For example, globally diversified giants Rio Tinto plc(NYSE:RIO) and BHP Billiton Limited(NYSE:BHP) both have uranium mines in the country. BHP’s Olympic Dam, its only uranium asset, is the largest known uranium orebody in the world. Rio, meanwhile, has an investment in the Ranger Mine.

The nuclear fuel is such a small contributor to BHP’s business that the company doesn’t even report that segment’s results independently. And at Rio, uranium made up just 1.3% of 2016 revenue and 0.4% of EBITDA. That said, Rio’s and BHP’s uranium mines are the most important in Australia, so the companies play a significant role in the global uranium market. The same is true of Australia, which is better known for commodities like iron ore and coal.

A map with Kazakhstan highlighted with a magnifying glass

IMAGE SOURCE: GETTY IMAGES.

2. Kazakhstan

Kazakhstan is the 42nd-largest economy in the world and the largest former Soviet Republic by area (excluding Russia). Kazakhstan is resource-rich, which helps to explain why its economy is so much larger than those of other Central Asian nations, and 22% of its exports go to neighboring China and Russia. The country also struggles with corruption and a weak banking system.

Kazakhstan contains about 13% of the world’s recoverable uranium, with 50 known deposits and around 20 operating uranium mines, so it’s a key player in the uranium market. Kazatomprom, a state-owned entity, controls the uranium industry in the country through its own subsidiaries or via joint ventures with foreign companies. One such partner is Cameco Corp(NYSE:CCJ), the world’s largest pure-play, publicly traded uranium miner. Cameco’s Inkai mine investment is just one of many uranium assets in the miner’s portfolio, which spans mining, processing, and brokering.

A man in Russian military uniform looking through binoculars

IMAGE SOURCE: GETTY IMAGES.

3. Russia

The third-largest player in the global uranium market is Russia, with about 9% of the world’s uranium (it’s actually tied with No. 4, Canada). Russia’s economy is the seventh-largest in the world, and the U.S. Central Intelligence Agency describes the country as a “centralized authoritarian state … in which the regime seeks to legitimize its rule through managed elections, populist appeals, a foreign policy focused on enhancing the country’s geopolitical influence, and commodity-based economic growth.” It’s easy to see why Russia’s enormous uranium reserves make many world leaders nervous.

Russia is largely seen as supporting countries like North Korea and Iran, either overtly or through political means, e.g., using its veto power on the United Nations Security Council. It has often teamed up with China, which will make a brief appearance later on this list, to soften the world’s response to North Korean and Iranian nuclear provocations. State-controlled AtomRedMetZoloto handles all of Russia’s uranium mining and exploration activity.

Canadian flag flying with a large building in the distance

IMAGE SOURCE: GETTY IMAGES.

4. Canada

Canada also accounts for around 9% of the world’s recoverable uranium. The United States’ northern neighbor, like Australia, is generally considered a positive force in the world. Its economy is the 18th-largest in the world. Throughout much of its history Canada has benefited from its proximity to the U.S., which is the end market for more than three-quarters of Canada’s exports.

Cameco, which hails from Canada, is the most notable uranium miner in the country. It has a number of investments, but Cigar Lake and McArthur River are two of the largest uranium mines in Canada and the world.

There is vast potential for further uranium development in Canada. For example, Cameco and Denison Mines Corp(NYSEMKT:DNN) are partners in the Wheeler River project. This mine, which isn’t expected to start production until 2025, has the potential to be one of the five largest uranium-producing mines in the world.

aerial photo of Cape Town South Africa

CAPE TOWN, SOUTH AFRICA. IMAGE SOURCE: GETTY IMAGES.

5. South Africa

From here the list of uranium-rich countries gets a little subjective, because the numbers are fairly close.According to some sources, South Africa has around 6% of the world’s developable uranium reserves. Other sources peg its reserves at just lower than the next two countries on the list, Niger and Namibia. Either way, it’s in the neighborhood of No. 5 by uranium reserves, and it’s a big step down from the top four countries on the list.

South Africa’s economy ranks at No. 31 globally. It has long struggled with unemployment, poverty, and inequality. The government, meanwhile, has not been a particularly stable influence. When it comes to mining, the country is better known for platinum, gold, and chromium than for uranium. For example, gold miner AngloGold Ashanti Limited(NYSE:AU) produces uranium in South Africa, but only as a byproduct of its other mining efforts.

South Africa has two nuclear power plants, and there are plans to build a couple more, so there is a potentially growing market for nuclear fuel in the country. Although South Africa will probably never be a major force in the global uranium market, it could be an interesting region to watch — especially if those new nuclear facilities get built.

Niger flag waving in the wind

IMAGE SOURCE: GETTY IMAGES.

6. Niger

Niger has about 5% of the world’s known developable uranium reserves. The country has two major mines and hits above its weight class, supplying roughly 7.5% of the world’s uranium. France’s Areva SA(NASDAQOTH:ARVCF) is a major player in the country, and its Arlit mine is one of the 10 highest-producing uranium mines in the world. Areva has another project in the country that’s currently on hold due to low uranium prices.

Niger’s is not a large economy, ranking at just 146 globally. Interestingly, uranium is Niger’s largest export. According to Areva, uranium represents around 5% of the country’s gross domestic product and supplies around 5% of its tax revenues. Niger, however, is a very poor nation and must rely on outside investment for the development of its resources. That’s where Areva comes in, though it’s worth noting here that China is also involved in developing Niger’s uranium assets to a smaller extent.

sand dunes in Namibia's Naukluft National Park

IMAGE SOURCE: GETTY IMAGES.

7. Namibia

Next up is Namibia, which also has roughly 5% of the world’s developable uranium resources. Namibia is only slightly larger than Niger, with its economy weighing in at No. 136 worldwide. Its economy, while poor, is more diversified than Niger’s: The country exports more diamonds, copper, gold, zinc, than it does uranium. Natural resources are highly important to the nation’s economic well-being. Overall, mining accounts for about 11.5% of the country’s gross domestic product and provides over half of the country’s foreign exchange earnings.

China is a big player in the country, and China’s investment there could materially change the face of the uranium market inside and outside Namibia. The CIA expects the Chinese-owned Husab mine to make Namibia the No. 2 uranium producer worldwide. India is also working toward a uranium relationship with the country. Australian-British miner Rio Tinto has a major stake in one of the country’s other two major mines as well. Namibia is a country to watch closely as competing forces look to take advantage of its uranium wealth.

Two athletes holding the Chinese flag between them

IMAGE SOURCE: GETTY IMAGES.

8. China

China has around 5% of the world’s developable uranium supplies and ranks as the globe’s largest economy based on gross domestic product. Some sources place its uranium reserves a little higher than countries like Namibia and Niger, while others rank them a little lower.

The centrally controlled country is a major nuclear power, with 20 nuclear power plants currently under construction (not to mention the ability to produce its own nuclear weapons). As you can see from its investment in Namibia, it is reaching out beyond its borders to ensure it has access to the uranium it needs for its internal use. And because of its size, it has the resources to continue investing to boost its position in the uranium industry.

Perhaps more concerning, China and its neighbor with nuclear ambitions, North Korea, have long been trading partners. China has attempted to protect the autocratic state politically, often allying with Russia in the effort. So while China is nowhere near the top of this list when it comes to uranium reserves, it is already playing an important role globally in mining for uranium and deciding how it gets used. China should probably be higher up on your list of concerns than any of the African nations that have equal or larger uranium reserves, and perhaps even higher than uranium giant Australia.

Tensions are running high

Uranium is a potentially life-altering power source when used conscientiously and carefully. It can provide reliable baseload power without the use of dirty carbon fuels. However, it can also be used to create weapons of mass destruction, which is why most countries around the world would prefer to keep it out of the hands of players like Iran and North Korea.

As you can see from this list, many of the largest uranium reserves are in countries that are democratic, relatively stable, and all-around good geopolitical forces. But some are too corrupt, unstable, or financially weak to fall into that category. If you are interested in the way uranium is getting used around the world, you should be keeping a close eye on at least a few of the countries that made this list.

https://www.fool.com/investing/2017/10/18/8-countries-with-the-largest-uranium-reserves.aspx

Supply of Uranium

(Updated December 2016)

  • Uranium is a relatively common metal, found in rocks and seawater. Economic concentrations of it are not uncommon.
  • Its availability to supply world energy needs is great both geologically and because of the technology for its use.
  • Quantities of mineral resources are greater than commonly perceived.
  • The world’s known uranium resources increased by at least one-quarter in the last decade due to increased mineral exploration.

Uranium is a relatively common element in the crust of the Earth (very much more than in the mantle). It is a metal approximately as common as tin or zinc, and it is a constituent of most rocks and even of the sea. Some typical concentrations are: (ppm = parts per million).

Very high-grade ore (Canada) – 20% U 200,000 ppm U
High-grade ore – 2% U, 20,000 ppm U
Low-grade ore – 0.1% U, 1,000 ppm U
Very low-grade ore* (Namibia) – 0.01% U 100 ppm U
Granite 3-5 ppm U
Sedimentary rock 2-3 ppm U
Earth’s continental crust (av) 2.8 ppm U
Seawater 0.003 ppm U

* Where uranium is at low levels in rock or sands (certainly less than 1000 ppm) it needs to be in a form which is easily separated for those concentrations to be called ‘ore’ – that is, implying that the uranium can be recovered economically. This means that it needs to be in a mineral form that can easily be dissolved by sulfuric acid or sodium carbonate leaching.

An orebody is, by definition, an occurrence of mineralisation from which the metal is economically recoverable. It is therefore relative to both costs of extraction and market prices. At present neither the oceans nor any granites are orebodies, but conceivably either could become so if prices were to rise sufficiently.

Measured resources of uranium, the amount known to be economically recoverable from orebodies, are thus also relative to costs and prices. They are also dependent on the intensity of past exploration effort, and are basically a statement about what is known rather than what is there in the Earth’s crust – epistemology rather than geology. See section below for mineral resource and reserve categories.

Changes in costs or prices, or further exploration, may alter measured resource figures markedly. At ten times the current price*, seawater might become a potential source of vast amounts of uranium. Thus, any predictions of the future availability of any mineral, including uranium, which are based on current cost and price data and current geological knowledge are likely to be extremely conservative.

* US DOE-funded work using polymer absorbent strips suggest $610/kgU in 2014. Japanese (JAERI) research in 2002 using a polymeric absorbent in a nonwoven fabric containing an amidoxime group that was capable of forming a complex with uranyl tricarbonate ions, suggested about $300/kgU.

From time to time concerns are raised that the known resources might be insufficient when judged as a multiple of present rate of use. But this is the Limits to Growth fallacy, a major intellectual blunder recycled from the 1970s, which takes no account of the very limited nature of the knowledge we have at any time of what is actually in the Earth’s crust. Our knowledge of geology is such that we can be confident that identified resources of metal minerals are a small fraction of what is there. Factors affecting the supply of resources are discussed further and illustrated in the Appendix.

Uranium availability

With those major qualifications the following Table gives some idea of our present knowledge of uranium resources. It can be seen that Australia has a substantial part (about 29%) of the world’s uranium, Kazakhstan 13%, Russia and Canada 9% each.

Known Recoverable Resources of Uranium 2015

tonnes U percentage of world
Australia
1,664,100
29%
Kazakhstan
745,300
13%
Canada
509,000
9%
Russian Fed
507,800
9%
South Africa
322,400
6%
Niger
291,500
5%
Brazil
276,800
5%
China
272,500
5%
Namibia
267,000
5%
Mongolia
141,500
2%
Uzbekistan
130,100
2%
Ukraine
115,800
2%
Botswana
73,500
1%
USA
62,900
1%
Tanzania
58,100
1%
Jordan
47,700
1%
Other
232,400
4%
World total
5,718,400

Reasonably Assured Resources plus Inferred Resources (recoverable), to US$ 130/kg U, 1/1/15, from OECD NEA & IAEA, Uranium 2016: Resources, Production and Demand (‘Red Book’). The total to US$ 260/kg U is 7.641 million tonnes U.
Reasonably Assured Resources of Uranium in 2009 stacked column graph

Current usage is about 63,000 tU/yr. Thus the world’s present measured resources of uranium (5.7 Mt) in the cost category less than three times present spot prices and used only in conventional reactors, are enough to last for about 90 years. This represents a higher level of assured resources than is normal for most minerals. Further exploration and higher prices will certainly, on the basis of present geological knowledge, yield further resources as present ones are used up.

An initial uranium exploration cycle was military-driven, over 1945 to 1958. The second cycle was about 1974 to 1983, driven by civil nuclear power and in the context of a perception that uranium might be scarce. There was relatively little uranium exploration between 1985 and 2003, so the significant increase in exploration effort since then could conceivably double the known economic resources despite adjustments due to increasing costs. In the two years 2005-06 the world’s known uranium resources tabulated above and graphed below increased by 15% (17% in the cost category to $80/kgU). World uranium exploration expenditure is increasing, as the the accompanying graph makes clear. In the third uranium exploration cycle from 2004 to the end of 2013 about US$ 16 billion was spent on uranium exploration and deposit delineation on over 600 projects. In this period over 400 new junior companies were formed or changed their orientation to raise over US$ 2 billion for uranium exploration. Much of this was spent on previously-known deposits. All this was in response to increased uranium price in the market and the prospect of firm future prices.

The price of a mineral commodity also directly determines the amount of known resources which are economically extractable. On the basis of analogies with other metal minerals, a doubling of price from present levels could be expected to create about a tenfold increase in measured economic resources, over time, due both to increased exploration and the reclassification of resources regarding what is economically recoverable.

This is in fact suggested in the IAEA-NEA figures if those covering estimates of all conventional resources (U as main product or major by-product) are considered – another 7.3 to 8.4 million tonnes (beyond the 5.9 Mt known economic resources), which takes us past 200 years’ supply at today’s rate of consumption. This still ignores the technological factor mentioned below. It also omits unconventional resources (U recoverable as minor by-product) such as phosphate/ phosphorite deposits (up to 22 Mt U), black shales (schists – 5.2 Mt U) and lignite (0.7 Mt U), and even seawater (up to 4000 Mt), which would be uneconomic to extract in the foreseeable future, although Japanese trials using a polymer braid have suggested costs a bit over $600/kgU. US work has developed this using polyethylene fibres coated with amidoxime, which binds uranium so that it can be stripped with acid. Research proceeds.

Known Uranium Resources and Exploration Expenditure area graph

It is clear from this Figure that known uranium resources have increased almost threefold since 1975, in line with expenditure on uranium exploration. (The decrease in the decade 1983-93 is due to some countries tightening their criteria for reporting. If this were carried back two decades, the lines would fit even more closely. Since 2007 some resources have been reclassified into higher-cost categories.) Increased exploration expenditure in the future is likely to result in a corresponding increase in known resources, even as inflation increases costs of recovery and hence tends to decrease the figures in each cost category.

About 20% of US uranium came from central Florida’s phosphate deposits to the mid 1990s, as a by-product, but it then became uneconomic. With higher uranium prices today the resource is being examined again, as is another lower-grade one in Morocco. Plans for Florida extend only to 400 tU/yr at this stage. See also companion paper on Uranium from Phosphate Deposits.

Coal ash is another easily-accessible though minor uranium resource in many parts of the world. In the 1960s and 1970s, some 1100 tU was recovered from coal ash in the USA. In central Yunnan province in China the coal uranium content varies up to 315 ppm and averages about 65 ppm. The ash averages about 210 ppm U (0.021%U) – above the cut-off level for some uranium mines. The Xiaolongtang power station ash heap contains over 1000 tU, with annual arisings of 190 tU. Recovery of this by acid leaching is about 70% in trials. This project has yet to announce any commercial production, however. Economic feasibility depends not only on grade but the composition of the ash – high acid consumption can make recovery uneconomic. World potential is likely to be less than 700 tU per year.

Widespread use of the fast breeder reactor could increase the utilisation of uranium 50-fold or more. This type of reactor can be started up on plutonium derived from conventional reactors and operated in closed circuit with its reprocessing plant. Such a reactor, supplied with natural or depleted uranium as a fuel source (NB not actual fuel), can be operated so that each tonne of ore yields vastly more energy than in a conventional reactor.

See also WNA position paper.

Reactor fuel requirements

The world’s power reactors, with combined capacity of some 375 GWe, require about 68,000 tonnes of uranium from mines or elsewhere each year. While this capacity is being run more productively, with higher capacity factors and reactor power levels, the uranium fuel requirement is increasing, but not necessarily at the same rate. The factors increasing fuel demand are offset by a trend for higher burn-up of fuel and other efficiencies, so demand is steady. (Over the years 1980 to 2008 the electricity generated by nuclear power increased 3.6-fold while uranium used increased by a factor of only 2.5.)

Reducing the tails assay in enrichment reduces the amount of natural uranium required for a given amount of fuel. Reprocessing of used fuel from conventional light water reactors also utilises present resources more efficiently, by a factor of about 1.3 overall.

The 2014 Red Book said that efficiencies on power plant operation and lower enrichment tails assays meant that uranium demand per unit capacity was falling, and the report’s generic reactor fuel consumption was reduced from 175 tU per GWe per year at 0.30% tails assay (2011 report) to 160 tU per GWe per year at 0.25% tails assay (2016 report). The corresponding U3O8 figures are 206 tonnes and 189 tonnes. Note that these figures are generalisations across the industry and across many different reactor types.

Today’s reactor fuel requirements are met from primary supply (direct mine output – 78% in 2009) and secondary sources: commercial stockpiles, nuclear weapons stockpiles, recycled plutonium and uranium from reprocessing used fuel, and some from re-enrichment of depleted uranium tails (left over from original enrichment). These various secondary sources make uranium unique among energy minerals.

Nuclear weapons as a source of fuel

An important source of nuclear fuel is the world’s nuclear weapons stockpiles. Since 1987 the United States and countries of the former USSR have signed a series of disarmament treaties to reduce the nuclear arsenals of the signatory countries by approximately 80 percent.

The weapons contained a great deal of uranium enriched to over 90 percent U-235 (i.e. up to 25 times the proportion in reactor fuel). Some weapons have plutonium-239, which can be used in mixed-oxide (MOX) fuel for civil reactors. From 2000 the dilution of 30 tonnes of military high-enriched uranium has been displacing about 10,600 tonnes of uranium oxide per year from mines, which represents about 15% of the world’s reactor requirements.

Details of the utilisation of military stockpiles are in the paper Military warheads as a source of nuclear fuel.

Other secondary sources of uranium

The most obvious source is civil stockpiles held by utilities and governments. The amount held here is difficult to quantify, due to commercial confidentiality. At the end of 2014 some 217,000 tU total inventory was estimated for utilities – USA 45,000 t, EU 53,000 t, China 74,000 t, other East Asia 45,0000 t (World Nuclear Association 2015 Nuclear Fuel Report). These reserves are expected to be drawn down somewhat, but they will be maintained at a fairly high level to to provide energy security for utilities and governments.

Recycled uranium and plutonium is another source, and currently saves 1700-2000 tU per year of primary supply, depending on whether just the plutonium or also the uranium is considered. This is expected to rise to 3000-4000 tU/yr by 2020. In fact, plutonium is quickly recycled as MOX fuel, whereas the reprocessed uranium (RepU) is mostly stockpiled, and the inventory at the end of 2014 was estimated at 75,000 tU. See also Processing of Used Nuclear Fuel for Recycle paper.

Re-enrichment of depleted uranium (DU, enrichment tails) is another secondary source. There is about 1.3 million tonnes of depleted uranium available, from both military and civil enrichment activity since the 1940s, most at tails assay of 0.25-0.35% U-235 (though the USA has 114,000 tU assaying 0.34% or more). Non-nuclear uses of DU are very minor relative to annual arisings of over 40,000 tU per year. This leaves most DU available for mixing with recycled plutonium on MOX fuel or as a future fuel resource for fast neutron reactors. However, some that has relatively high assay can be fed through under-utilised enrichment plants to produce natural uranium equivalent, or even enriched uranium ready for fuel fabrication. Russian enrichment plants have treated 10-15,000 tonnes per year of DU assaying over 0.3% U-235, stripping it down to 0.1% and producing a few thousand tonnes per year of natural uranium equivalent. This Russian program treating Western tails has now finished, but a new US one is expected to start when surplus capacity is available, treating about 140,000 tonnes of old DU assaying 0.4% U-235.

Underfeeding at enrichment plants is a significant source of secondary supply, especially since the Fukushima accident reduced enrichment demand for several years. This is where the operational tails assay is lower than the contracted/transactional assay, and the enricher sets aside some surplus natural uranium, which it is free to sell (either as natural uranium or as enriched uranium product) on its own account. UxC estimates that with an optimum tails assay of 0.23% in 2013, the enrichers have the potential to contribute up to 7700 tU per year to world markets by underfeeding. The 2015 edition of the World Nuclear Association’s Nuclear Fuel Report estimates 5000 to 8000 tU/yr from this source to the mid-2020s.

International fuel reserves

There have been three major initiatives to set up international reserves of enriched fuel, two of them multilateral ones, with fuel to be available under International Atomic Energy Agency (IAEA) auspices despite any political interruptions which might affect countries needing them. The third is under US auspices, and also to meet needs arising from supply disruptions.

Russian LEU reserve

In November 2009 the IAEA Board approved a Russian proposal to create an international “fuel bank” or guaranteed reserve of low-enriched uranium under IAEA control at the International Uranium Enrichment Centre (IUEC) at Angarsk. This Russian LEU reserve was established a year later and comprises 123 tonnes of low-enriched uranium as UF6, enriched 2.0-4.95% U-235 (with 40t of latter), available to any IAEA member state in good standing which is unable to procure fuel for political reasons. It is fully funded by Russia, held under safeguards, and the fuel will be made available to IAEA at market rates, using a formula based on spot prices. Following an IAEA decision to allocate some of it, Rosatom will transport material to St Petersburg and transfer title to IAEA, which will then transfer ownership to the recipient. The 120 tonnes uranium as UF6 is equivalent to two full fuel loads for a typical 1000 MWe reactor, and is (in 2011) worth some US$ 250 million.

IAEA LEU bank

In December 2010 the IAEA board resolved to establish a similar guaranteed reserve of low-enriched uranium, the IAEA LEU Bank*. It will comprise a physical stock of UF6 owned by the IAEA, which shall “be responsible for storing and protecting” it. According to international norms, such a ‘fuel bank’ must be located in a country with no nuclear weapons and be fully open to IAEA inspectors. The fuel bank will be a potential supply of 90 tonnes LEU (as UF6) for the production of fuel assemblies for nuclear power plants. The Kazakh government in April 2015 approved a draft agreement with the IAEA for thisIn June 2015 the IAEA board approved plans for the IAEA LEU Bank to be located at the Ulba Metallurgical Plant (UMP) at Ust-Kamenogorsk (aka Oskemen) and operated by Kazakhstan. A formal agreement with Kazakhstan to establish the legal framework was signed in August. A transit agreement with Russia for shipping LEU was also approved. An agreement between the IAEA and UMP was signed in May 2016. UMP expects to receive the necessary approvals from the relevant authorities, and have the facility built and ready for operation by September 2017.

*  ‘LEU IAEA’ is defined as LEU owned by the IAEA in the form of uranium hexafluoride (UF6) with a nominal enrichment of U-235 to 4.95%. It comprises up to 60 full containers of the 30B type or later versions. Type 30B cylinders each hold 2.27 t UF6 (1.54 tU), hence about 92 tU. The IAEA bears the costs of the purchase and delivery (import-export) of LEU, the purchase of equipment and its operation, technical resources and other goods and services required. Kazakhstan will meet the costs of LEU storage, including payment of electricity, heating, office space and staff costs. The agreement allows for the possible transfer of the LEU fuel bank to another site from the Ulba Metallurgical Plant, and it has a ten-year duration with automatic renewal at the end of this period.

The IAEA LEU Bank is fully funded by voluntary contributions including $50 million from the US-based Nuclear Threat Initiative (NTI) organization, $49 million from the USA, up to $25 million from the European Union, $10 million each from Kuwait and the United Arab Emirates, and $5 million from Norway. (See IAEA Factsheet).

American assured fuel supply

In 2005 the US government announced plans for the establishment of a mechanism to ensure fuel supply for use in commercial reactors in foreign countries where there has been supply disruption. The fuel would come from downblending 17.4 tonnes of high-enriched uranium (HEU). In August 2011 US Department of Energy announced an expanded scope for the program so it would also serve US utility needs, and now be called the American Assured Fuel Supply (AFS). At that point most of the downblending of the HEU had been completed, and the scheme was ready to operate. The AFS will comprise about 230 tonnes of low-enriched uranium (with another 60t from downblending being sold on the market to pay for the work). The AFS program is administered by the US National Nuclear Safety Administration, foreign access must be through a US entity, and the fuel will be sold at current market prices. The 230 t amount is equivalent to about six reloads for a 1000 MWe reactor.

Mineral resources and reserves

The following are internationally-recognised categories based on Australia’s JORC code, which the Canadian NI 43-101 code follows.

A ‘mineral resource’ is a known concentration of minerals in the Earth’s crust with reasonable prospects for eventual economic extraction. Mineral resources are sub-divided, in order of increasing geological confidence, into inferred, indicated and measured categories.

  • An ‘inferred’ mineral resource is that part of a mineral resource for which tonnage, grade and mineral content can be estimated with only a low level of confidence. The information on which it is based is limited, or of uncertain quality and reliability.
  • An ‘indicated’ mineral resource is that part of a mineral resource for which tonnage, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information which is adequate to assume but not confirm geological and/or grade continuity.
  • A ‘measured’ mineral resource is that part of a mineral resource for which tonnage, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information with locations spaced closely enough to confirm geological and grade continuity.

A ‘mineral’ reserve (or ore reserve) is the economically mineable part of a measured and/or indicated mineral resource. It allows for dilution and losses which may occur when the material is mined. Appropriate assessments and studies will have been carried out, and include consideration of realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Mineral or ore reserves are sub-divided in order of increasing confidence into probable mineral/ore reserves and proved mineral/ore reserves.

  • A ‘probable’ mineral reserve (or probable ore reserve) is the economically mineable part of an indicated mineral resource. Studies to at least pre-feasibility level will have been carried out, demonstrating that extraction could reasonably be justified.
  • A ‘proved’ mineral reserve (or proved ore reserve) is the economically mineable part of a measured mineral resource. Studies to at least pre-feasibility level will have been carried out, demonstrating that extraction is justified.

Thorium as a nuclear fuel

Today uranium is the only fuel supplied for nuclear reactors. However, thorium can also be utilised as a fuel for CANDU reactors or in reactors specially designed for this purpose. Neutron efficient reactors, such as CANDU, are capable of operating on a thorium fuel cycle, once they are started using a fissile material such as U-235 or Pu-239. Then the thorium (Th-232) atom captures a neutron in the reactor to become fissile uranium (U-233), which continues the reaction. Some advanced reactor designs are likely to be able to make use of thorium on a substantial scale.

The thorium fuel cycle has some attractive features, though it is not yet in commercial use. Thorium is reported to be about three times as abundant in the earth’s crust as uranium. The 2009 IAEA-NEA Red Book lists 3.6 million tonnes of known and estimated resources as reported, but points out that this excludes data from much of the world, and estimates about 6 million tonnes overall. See also companion paper on Thorium.

Main references

OECD NEA & IAEA, 2014, Uranium 2014: Resources, Production and Demand
WNA 2013, The Global Nuclear Fuel Market – Supply and Demand 2013-2030
UN Institute for Disarmament Research, Yury Yudin (ed) 2011, Multilateralization of the Nuclear Fuel Cycle – The First Practical Steps
Monnet, A, CEA, Uranium from Coal Ash: Resource assessment and outlook, IAEA URAM 2014


Appendix 1 —- (Sept 2005)

Substantially derived from 2003 WNA Symposium paper by Colin MacDonald, Uranium: Sustainable Resource or Limit to Growth? – supplemented by his 2005 WNA Symposium paper and including a model Economic adjustments in the supply of a ‘non-renewable’ resource from Ian Hore-Lacy.

The Sustainability of Mineral Resources

with reference to uranium

It is commonly asserted that because “the resources of the earth are finite”, therefore we must face some day of reckoning, and will need to plan for “negative growth”. All this, it is pointed out, is because these resources are being consumed at an increasing rate to support our western lifestyle and to cater for the increasing demands of developing nations. The assertion that we are likely to run out of resources is a re-run of the “Limits to Growth” argument (Club of Rome 1972 popularised by Meadows et al in Limits of Growth at that time. (A useful counter to it is W Berckerman, In Defence of Economic Growth, also Singer, M, Passage to a Human World, Hudson Inst. 1987). In the decade following its publication world bauxite reserves increased 35%, copper 25%, nickel 25%, uranium and coal doubled, gas increased 70% and even oil increased 6%.) fashionable in the early 1970s, which was substantially disowned by its originators, the Club of Rome, and shown up as nonsense with the passing of time. It also echoes similar concerns raised by economists in the 1930s, and by Malthus at the end of the 18th Century.

In recent years there has been persistent misunderstanding and misrepresentation of the abundance of mineral resources, with the assertion that the world is in danger of actually running out of many mineral resources. While congenial to common sense if the scale of the Earth’s crust is ignored, it lacks empirical support in the trend of practically all mineral commodity prices and published resource figures over the long term. In recent years some have promoted the view that limited supplies of natural uranium are the Achilles heel of nuclear power as the sector contemplates a larger contribution to future clean energy, notwithstanding the small amount of it required to provide very large amounts of energy.

Uranium supply news is usually framed within a short-term perspective. It concerns who is producing with what resources, who might produce or sell, and how does this balance with demand? However, long-term supply analysis enters the realm of resource economics. This discipline has as a central concern the understanding of not just supply/demand/price dynamics for known resources, but also the mechanisms for replacing resources with new ones presently unknown. Such a focus on sustainability of supply is unique to the long view. Normally-functioning metals markets and technology change provide the drivers to ensure that supply at costs affordable to consumers is continuously replenished, both through the discovery of new resources and the re-definition (in economic terms) of known ones.

Of course the resources of the earth are indeed finite, but three observations need to be made: first, the limits of the supply of resources are so far away that the truism has no practical meaning. Second, many of the resources concerned are either renewable or recyclable (energy minerals and zinc are the main exceptions, though the recycling potential of many materials is limited in practice by the energy and other costs involved). Third, available reserves of ‘non-renewable’ resources are constantly being renewed, mostly faster than they are used.

There are three principal areas where resource predictions have faltered:

  • predictions have not accounted for gains in geological knowledge and understanding of mineral deposits;
  • they have not accounted for technologies utilised to discover, process and use them;
  • economic principles have not been taken into account, which means that resources are thought of only in present terms, not in terms of what will be economic through time, nor with concepts of substitution in mind.

What then does sustainability in relation to mineral resources mean? The answer lies in the interaction of these three things which enable usable resources (Some licence is taken in the use of this word in the following, strictly it is reserves of minerals which are created) effectively to be created. They are brought together in the diagram below.
Economic Adjustments in Supply of a 'Non-renewable' Resource flow diagram
Economic Adjustments in Uranium Supply and Use flow diagram
Numerous economists have studied resource trends to determine which measures should best reflect resource scarcity (Tilton, J. On Borrowed Time? Assessing the threat of mineral depletion, Resources for the Future, Washington DC 2002). Their consensus view is that costs and prices, properly adjusted for inflation, provide a better early warning system for long-run resource scarcity than do physical measures such as resource quantities.

Historic data show that the most commonly used metals have declined in both their costs and real commodity prices over the past century. Such price trends are the most telling evidence of lack of scarcity. Uranium has been a case in point, relative to its late 1970s price of US$ 40/lb U3O8.

An anecdote underlines this basic truth: In 1980 two eminent professors, fierce critics of one another, made a bet regarding the real market price of five metal commodities over the next decade. Paul Ehrlich, a world-famous ecologist, bet that because the world was exceeding its carrying capacity, food and commodities would start to run out in the 1980s and prices in real terms would therefore rise. Julian Simon, an economist, said that resources were effectively so abundant, and becoming effectively more so, that prices would fall in real terms. He invited Ehrlich to nominate which commodities would be used to test the matter, and they settled on these (chrome, copper, nickel, tin and tungsten). In 1990 Ehrlich paid up – all the prices had fallen.

However, quantities of known resources tell a similar and consistent story. To cite one example, world copper reserves in the 1970s represented only 30 years of then-current production (6.4 Mt/yr). Many analysts questioned whether this resource base could satisfy the large expected requirements of the telecommunications industry by 2000. But by 1994, world production of copper had doubled (12 Mt/yr) and the available reserves were still enough for another 30 years. The reserve multiple of current production remained the same.
Metal Prices line graph

Another way to understand resource sustainability is in terms of economics and capital conservation. Under this perspective, mineral resources are not so much rare or scarce as they are simply too expensive to discover if you cannot realise the profits from your discovery fairly soon. Simple economic considerations therefore discourage companies from discovering much more than society needs through messages of reduced commodity prices during times of oversupply. Economically rational players will only invest in finding these new reserves when they are most confident of gaining a return from them, which usually requires positive price messages caused by undersupply trends. If the economic system is working correctly and maximizing capital efficiency, there should never be more than a few decades of any resource commodity in reserves at any point in time.
Resource Levels graphic

The fact that many commodities have more resources available than efficient economic theory might suggest may be partly explained by two characteristics of mineral exploration cycles. First, the exploration sector tends to over-respond to the positive price signals through rapid increases in worldwide expenditures (which increases the rate of discoveries), in particular through the important role of more speculatively-funded junior exploration companies. Exploration also tends to make discoveries in clusters that have more to do with new geological knowledge than with efficient capital allocation theory. As an example, once diamonds were known to exist in northern Canada, the small exploration boom that accompanied this resulted in several large discoveries – more than the market may have demanded at this time. These patterns are part of the dynamics that lead to commodity price cycles. New resource discoveries are very difficult to precisely match with far-off future demand, and the historic evidence suggests that the exploration process over-compensates for every small hint of scarcity that the markets provide.

Another important element in resource economics is the possibility of substitution of commodities. Many commodity uses are not exclusive – should they become too expensive they can be substituted with other materials. Even if they become cheaper they may be replaced, as technology gains have the potential to change the style and cost of material usage. For example, copper, despite being less expensive in real terms than 30 years ago, is still being replaced by fibre optics in many communication applications. These changes to materials usage and commodity demand provide yet another dimension to the simple notion of depleting resources and higher prices.

In summary, historic metals price trends, when examined in the light of social and economic change through time, demonstrate that resource scarcity is a double-edged sword. The same societal trends that have increased metals consumption, tending to increase prices, have also increased the available wealth to invest in price-reducing knowledge and technology. These insights provide the basis for the economic sustainability of metals, including uranium.

Geological knowledge

Whatever minerals are in the earth, they cannot be considered usable resources unless they are known. There must be a constant input of time, money and effort to find out what is there. This mineral exploration endeavour is not merely fossicking or doing aerial magnetic surveys, but must eventually extend to comprehensive investigation of orebodies so that they can reliably be defined in terms of location, quantity and grade. Finally, they must be technically and economically quantified as mineral reserves. That is the first aspect of creating a resource. See section in paper for mineral resource and reserve categories.

For reasons outlined above, measured resources of many minerals are increasing much faster than they are being used, due to exploration expenditure by mining companies and their investment in research. Simply on geological grounds, there is no reason to suppose that this trend will not continue. Today, proven mineral resources worldwide are more than we inherited in the 1970s, and this is especially so for uranium.

Simply put, metals which are more abundant in the Earth’s crust are more likely to occur as the economic concentrations we call mineral deposits. They also need to be reasonably extractable from their host minerals. By these measures, uranium compares very well with base and precious metals. Its average crustal abundance of 2.7 ppm is comparable with that of many other metals such as tin, tungsten, and molybdenum. Many common rocks such as granite and shales contain even higher uranium concentrations of 5 to 25 ppm. Also, uranium is predominantly bound in minerals which are not difficult to break down in processing.

As with crustal abundance, metals which occur in many different kinds of deposits are easier to replenish economically, since exploration discoveries are not constrained to only a few geological settings. Currently, at least 14 different types of uranium deposits are known, occurring in rocks of wide range of geological age and geographic distribution. There are several fundamental geological reasons why uranium deposits are not rare, but the principal reason is that uranium is relatively easy both to place into solution over geological time, and to precipitate out of solution in chemically reducing conditions. This chemical characteristic alone allows many geological settings to provide the required hosting conditions for uranium resources. Related to this diversity of settings is another supply advantage ?the wide range in the geological ages of host rocks ensures that many geopolitical regions are likely to host uranium resources of some quality.

Unlike the metals which have been in demand for centuries, society has barely begun to utilise uranium. As serious non-military demand did not materialise until significant nuclear generation was built by the late 1970s, there has been only one cycle of exploration-discovery-production, driven in large part by late 1970s price peaks (MacDonald, C, Rocks to reactors: Uranium exploration and the market. Proceedings of WNA Symposium 2001). This initial cycle has provided more than enough uranium for the last three decades and several more to come. Clearly, it is premature to speak about long-term uranium scarcity when the entire nuclear industry is so young that only one cycle of resource replenishment has been required. It is instead a reassurance that this first cycle of exploration was capable of meeting the needs of more than half a century of nuclear energy demand.

Related to the youthfulness of nuclear energy demand is the early stage that global exploration had reached before declining uranium prices stifled exploration in the mid-1980s. The significant investment in uranium exploration during the 1970-82 exploration cycle would have been fairly efficient in discovering exposed uranium deposits, due to the ease of detecting radioactivity. Still, very few prospective regions in the world have seen the kind of intensive knowledge and technology-driven exploration that the Athabasca Basin of Canada has seen since 1975. This fact has huge positive implications for future uranium discoveries, because the Athabasca Basin history suggests that the largest proportion of future resources will be as deposits discovered in the more advanced phases of exploration. Specifically, only 25% of the 635,000 tonnes of U3O8 discovered so far in the Athabasca Basin could be discovered during the first phase of surface-based exploration. A sustained second phase, based on advances in deep penetrating geophysics and geological models, was required to discover the remaining 75%.

Another dimension to the immaturity of uranium exploration is that it is by no means certain that all possible deposit types have even been identified. Any estimate of world uranium potential made only 30 years ago would have missed the entire deposit class of unconformity deposits that have driven production since then, simply because geologists did not know this class existed.

Technology

It is meaningless to speak of a resource until someone has thought of a way to use any particular material. In this sense, human ingenuity quite literally creates new resources, historically, currently and prospectively. That is the most fundamental level at which technology creates resources, by making particular minerals usable in new ways. Often these then substitute to some degree for others which are becoming scarcer, as indicated by rising prices. Uranium was not a resource in any meaningful sense before 1940.

More particularly, if a known mineral deposit cannot be mined, processed and marketed economically, it does not constitute a resource in any practical sense. Many factors determine whether a particular mineral deposit can be considered a usable resource – the scale of mining and processing, the technological expertise involved, its location in relation to markets, and so on. The application of human ingenuity, through technology, alters the significance of all these factors and is thus a second means of ‘creating’ resources. In effect, portions of the earth’s crust are reclassified as resources. A further aspect of this is at the manufacturing and consumer level, where technology can make a given amount of resources go further through more efficient use.(aluminium can mass was reduced by 21% 1972-88, and motor cars each use about 30% less steel than 30 years ago)

An excellent example of this application of technology to create resources is in the Pilbara region of Western Australia. Until the 1960s the vast iron ore deposits there were simply geological curiosities, despite their very high grade. Australia had been perceived as short of iron ore. With modern large-scale mining technology and the advent of heavy duty railways and bulk shipping which could economically get the iron ore from the mine (well inland) through the ports of Dampier and Port Hedland to Japan, these became one of the nation’s main mineral resources. For the last 45 years Hamersley Iron (Rio Tinto), Mount Newman (BHP-Billiton) and others have been at the forefront of Australia’s mineral exporters, drawing upon these ‘new’ orebodies.

Just over a hundred years ago aluminium was a precious metal, not because it was scarce, but because it was almost impossible to reduce the oxide to the metal, which was therefore fantastically expensive. With the discovery of the Hall-Heroult process in 1886, the cost of producing aluminium plummeted to about one twentieth of what it had been and that metal has steadily become more commonplace. It now competes with iron in many applications, and copper in others, as well as having its own widespread uses in every aspect of our lives. Not only was a virtually new material provided for people’s use by this technological breakthrough, but enormous quantities of bauxite world-wide progressively became a valuable resource. Without the technological breakthrough, they would have remained a geological curiosity.

Incremental improvements in processing technology at all plants are less obvious but nevertheless very significant also. Over many years they are probably as important as the historic technological breakthroughs.

To achieve sustainability, the combined effects of mineral exploration and the development of technology need to be creating resources at least as fast as they are being used. There is no question that in respect to the minerals industry this is generally so, and with uranium it is also demonstrable. Recycling also helps, though generally its effect is not great.

Economics

Whether a particular mineral deposit is sensibly available as a resource will depend on the market price of the mineral concerned. If it costs more to get it out of the ground than its value warrants, it can hardly be classified as a resource (unless there is some major market distortion due to government subsidies of some kind). Therefore, the resources available will depend on the market price, which in turn depends on world demand for the particular mineral and the costs of supplying that demand. The dynamic equilibrium between supply and demand also gives rise to substitution of other materials when scarcity looms (or the price is artificially elevated). This then is the third aspect of creating resources.

The best known example of the interaction of markets with resource availability is in the oil industry. When in 1972 OPEC suddenly increased the price of oil fourfold, several things happened at both producer and consumer levels.

The producers dramatically increased their exploration effort, and applied ways to boost oil recovery from previously ‘exhausted’ or uneconomic wells. At the consumer end, increased prices meant massive substitution of other fuels and greatly increased capital expenditure in more efficient plant. As a result of the former activities, oil resources increased dramatically. As a result of the latter, oil use fell slightly to 1975 and in the longer perspective did not increase globally from 1973 to 1986. Forecasts in 1972, which had generally predicted a doubling of oil consumption in ten years, proved quite wrong.

Oil will certainly become scarce one day, probably before most other mineral resources, which will continue to drive its price up. As in the 1970s, this will in turn cause increased substitution for oil and bring about greater efficiencies in its use as equilibrium between supply and demand is maintained by the market mechanism. Certainly oil will never run out in any absolute sense – it will simply become too expensive to use as liberally as we now do.

Another example is provided by aluminium. During World War II, Germany and Japan recovered aluminium from kaolinite, a common clay, at slightly greater cost than it could be obtained from bauxite.

Due to the operation of these three factors the world’s economically demonstrated resources of most minerals have risen faster than the increased rate of usage over the last 50 years, so that more are available now, notwithstanding liberal usage. This is largely due to the effects of mineral exploration and the fact that new discoveries have exceeded consumption.

Replacement of uranium

A characteristic of metals resource replacement is that the mineral discovery process itself adds a small cost relative to the value of the discovered metals. As an example, the huge uranium reserves of Canada’s Athabasca Basin were discovered for about US$1.00/kgU (2003 dollars, including unsuccessful exploration). Similar estimates for world uranium resources, based on published IAEA exploration expenditure data and assuming that these expenditures yielded only the past uranium produced plus the present known economic resources categories at up to US$80/kg (Uranium 2003: Resources, Production and demand. Nuclear Energy Agency and IAEA, OECD Publications 2004) yields slightly higher costs of about US$1.50/kgU. This may reflect the higher component of State-driven exploration globally, some of which had national self-sufficiency objectives that may not have aligned with industry economic standards.

From an economic perspective, these exploration costs are essentially equivalent to capital investment costs, albeit spread over a longer time period. It is, however, this time lag between the exploration expense and the start of production that confounds attempts to analyse exploration economics using strict discounted cash flow methods. The positive cash flows from production occur at least 10-15 years into the future, so that their present values are obviously greatly reduced, especially if one treats the present as the start of exploration. This creates a paradox, since large resource companies must place a real value on simply surviving and being profitable for many decades into the future; and, without exploration discoveries, all mining companies must expire with their reserves. Recent advances in the use of real options and similar methods are providing new ways to understand this apparent paradox. A key insight is that time, rather than destroying value through discounting, actually adds to the option value, as does the potential of price volatility. Under this perspective, resource companies create value by obtaining future resources which can be exploited optimally under a range of possible economic conditions. Techniques such as these are beginning to add analytical support to what have always been intuitive understandings by resource company leaders – that successful exploration creates profitable mines and adds value to company shares.

Since uranium is part of the energy sector, another way to look at exploration costs is on the basis of energy value. This allows comparisons with the energy investment cost for other energy fuels, especially fossil fuels which will have analogous costs related to the discovery of the resources. From numerous published sources, the finding costs of crude oil have averaged around US$ 6/bbl over at least the past three decades. Uranium’s finding costs make up only 2% of the recent spot price of US$ 30/lb ($78/kgU), while the oil finding costs are 12% of a recent spot price of US$ 50/bbl.

By these measures, uranium is a very inexpensive energy source to replenish, as society has accepted far higher energy replacement costs to sustain oil resources. This low basic energy resource cost is one argument in favour of a nuclear-hydrogen solution to long-term replacement of oil as a transportation fuel.

Forecasting replenishment

Supply forecasters are often reluctant to consider the additive impacts of exploration on new supply, arguing that assuming discoveries is as risky and speculative as the exploration business itself. Trying to predict any single discovery certainly is speculative. However, as long as the goal is merely to account for the estimated total discovery rate at a global level, a proxy such as estimated exploration expenditures can be used. Since expenditures correlate with discovery rate, the historic (or adjusted) resources discovered per unit of expenditure will provide a reasonable estimate of resource gains to be expected. As long as the time lag between discovery and production is accounted for, this kind of dynamic forecasting is more likely to provide a basis for both price increases and decreases, which metals markets have historically demonstrated.

Without these estimates of uranium resource replenishment through exploration cycles, long-term supply-demand analyses will tend to have a built-in pessimistic bias (i.e. towards scarcity and higher prices), that will not reflect reality. Not only will these forecasts tend to overestimate the price required to meet long-term demand, but the opponents of nuclear power use them to bolster arguments that nuclear power is unsustainable even in the short term. In a similar fashion, these finite-resources analyses also lead observers of the industry to conclude that fast breeder reactor technology will soon be required. This may indeed make a gradual appearance, but if uranium follows the price trends we see in other metals, its development will be due to strategic policy decisions more than uranium becoming too expensive.

The resource economics perspective tells us that new exploration cycles should be expected to add uranium resources to the world inventory, and to the extent that some of these may be of higher quality and involve lower operating cost than resources previously identified, this will tend to mitigate price increases. This is precisely what has happened in uranium, as the low-cost discoveries in Canada’s Athabasca Basin have displaced higher-cost production from many other regions, lowering the cost curve and contributing to lower prices. Secondary uranium supplies, to the extent that they can be considered as a very low-cost mine, have simply extended this price trend.

The first exploration and mining cycle for uranium occurred about 1970 to 1985. It provided enough uranium to meet world demand for some 80 years, if we view present known resources as arising from it. With the rise in uranium prices to September 2005 and the concomitant increase (boom?) in mineral exploration activity, it is clear that we have the start of a second such cycle, mid-2003 to ??. The price increase was brought about by diminution of secondary supplies coupled with a realization that primary supplies needed to increase substantially.

Several significant decisions on mine development and increased exploration by major producers will enable this expansion of supply, coupled with smaller producers coming on line. The plethora of junior exploration companies at the other end of the spectrum which are finding no difficulty whatever in raising capital are also a positive sign that a vigorous new exploration and mining cycle is cranking up. From lows of around US$ 55 million per year in 2000, world uranium exploration expenditure rose to about US$ 110 million in 2004 and is expected to be US$ 185 million in 2005, half of this being from the junior exploration sector. The new cycle is also showing considerable regional diversification. Measured from 1990, cycle 2 totals US$ 1.5 billion to 2005, compared with a total of about three times this figure (uncorrected) for the whole of the first cycle.

Depletion and sustainability

Conversely, the exhaustion of mineral resources during mining is real. Resource economists do not deny the fact of depletion, nor its long-term impact – that in the absence of other factors, depletion will tend to drive commodity prices up. But as we have seen, mineral commodities can become more available or less scarce over time if the cost-reducing effects of new technology and exploration are greater than the cost-increasing effects of depletion.

One development that would appear to argue against economic sustainability is the growing awareness of the global depletion of oil, and in some regions such as North America, natural gas. But oil is a fundamentally different material. This starts with geology, where key differences include the fact that oil and gas were formed by only one process: the breakdown of plant life on Earth. Compared with the immense volumes of rock-forming minerals in the Earth? crust, living organisms on top of it have always been a very tiny proportion. But a more important fact is that the world has consumed oil, and recently natural gas as well, in a trajectory of rapid growth virtually unmatched by any other commodity. Consumption growth rates of up to 10% annually over the past 50 years are much higher than we see for other commodities, and support the contention that oil is a special depletion case for several reasons: its geological occurrence is limited, it has been inexpensive to extract, its energy utility has been impossible to duplicate for the price, and its resulting depletion rates have been incredibly high.

This focus on rates of depletion suggests that one of the dimensions of economic sustainability of metals has to do with their relative rates of depletion. Specifically, it suggests that economic sustainability will hold indefinitely as long as the rate of depletion of mineral resources is slower than the rate at which it is offset. This offsetting force will be the sum of individual factors that work against depletion, and include cost-reducing technology and knowledge, lower cost resources through exploration advances, and demand shifting through substitution of materials.

An economic sustainability balance of this type also contemplates that, at some future point, the offsetting factors may not be sufficient to prevent irreversible depletion-induced price increases, and it is at this point that substituting materials and technologies must come into play to take away demand. In the case of rapid oil depletion, that substitute appears to be hydrogen as a transport fuel. Which raises the question of how the hydrogen is produced, and nuclear energy seems the most likely means of that, using high-temperature reactors.

From a detached viewpoint all this may look like mere technological optimism. But to anyone closely involved it is obvious and demonstrable. Furthermore, it is illustrated by the longer history of human use of the Earth’s mineral resources. Abundance, scarcity, substitution, increasing efficiency of use, technological breakthroughs in discovery, recovery and use, sustained incremental improvements in mineral recovery and energy efficiency – all these comprise the history of minerals and humankind.

http://www.world-nuclear.org/information-library/nuclear-fuel-cycle/uranium-resources/supply-of-uranium.aspx

7 Uranium One Facts Every American Should Know

Hillary Clinton and the Obama administration find themselves at the center of an explosive scandal involving the transfer of 20 percent of all U.S. uranium to Russia via the sale of the Uranium One company, just as nine foreign investors in the deal funneled $145 million to the Clinton Foundation to help grease the wheels.

Here are the seven facts about the Uranium One deal you need to know:

  1. Peter Schweizer Broke the Uranium One Scandal
    Government Accountability Institute (GAI) President and Breitbart News Senior Editor-at-Large Peter Schweizer broke the Uranium One scandal in his book Clinton Cash: The Untold Story of How and Why Foreign Governments and Businesses Helped Make Bill and Hillary Rich. In the book, he reported that Clinton’s State Department, along with other federal agencies, approved the transfer of 20 percent of all U.S. uranium to Russia and that nine foreign investors in the deal gave $145 million to Hillary and Bill Clinton’s personal charity, the Clinton Foundation.
  1. The New York Times Confirmed the Scandal in 2015
    The New York Times confirmed Schweizer’s Uranium One revelations in a 4,000-word front-page story by a Pulitzer Prize-winning investigative reporter. It detailed how the Russian energy giant Rosatom had taken over the Canadian firm with three separate purchases between 2009 and 2013, largely coinciding with Hillary Clinton’s time as secretary of state.
  1. The FBI Uncovered Evidence that Russian Money Was Funneled to the Clinton Foundation
    The Hill reported last week that ahead of the deal, the FBI had uncovered “substantial evidence that Russian nuclear industry officials were engaged in bribery, kickbacks, extortion and money laundering” to expand Russia’s nuclear footprint in the U.S. as early as 2009. The agency also found that Russian nuclear officials had routed millions of dollars to the U.S. to benefit the Clinton Foundation. The Justice Department would sit on the evidence for four years before looking to prosecute, by which time the deal had been approved.
  1. Congress Is Now Investigating
    The Senate Judiciary Committee has launched a probe into the scandal and has sent requests for more information to 10 federal agencies involved in the approval of the partial sale of Uranium One, asking what they knew about the FBI investigation and when.
  1. Bill Clinton Was Paid $500,000 for a Speech in Moscow
    Bill Clinton bagged a $500,000 speech in Moscow paid for by a Kremlin-backed bank shortly after Russia announced its intention to take a majority stake in the company. According to the Times, Clinton traveled to Moscow in June 2010, the same month Rosatom struck its deal for its majority stake in Uranium One.
  1. The Clinton Foundation Took Big Bucks from Uranium Investors
    According to theTimes, The Clinton Foundation received $2.35 million in donations from Ian Telfer, a mining investor who was also the chairman of Uranium One when Rosatom acquired it. It also received $31.3 million and a pledge for $100 million more from Frank Giustra, the Canadian mining financier whose company merged with Uranium One.
  1. Senate Republicans Want an FBI Gag Order Lifted
    Senate Judiciary Chairman Chuck Grassley (R-IA) has called for the Justice Department to lift the gag order on the FBI’s whistleblower, indicating that he may have more explosive revelations related to the case and on what the Clintons and the Obama administration knew about the case and when they knew it.

Adam Shaw is a Breitbart News politics reporter based in New York. Follow Adam on Twitter: @AdamShawNY

http://www.breitbart.com/big-government/2017/10/23/7-uranium-one-facts-every-american-should-know/

A Uranium One sign that points to a 35,000-acre ranch owned by John Christensen, near the town of Gillette, Wyo. Uranium One has the mining rights to Mr. Christensen’s property. CreditMatthew Staver for The New York Times

The headline on the website Pravda trumpeted President Vladimir V. Putin’s latest coup, its nationalistic fervor recalling an era when its precursor served as the official mouthpiece of the Kremlin: “Russian Nuclear Energy Conquers the World.”

The article, in January 2013, detailed how the Russian atomic energy agency, Rosatom, had taken over a Canadian company with uranium-mining stakes stretching from Central Asia to the American West. The deal made Rosatom one of the world’s largest uranium producers and brought Mr. Putin closer to his goal of controlling much of the global uranium supply chain.

But the untold story behind that story is one that involves not just the Russian president, but also a former American president and a woman who would like to be the next one.

At the heart of the tale are several men, leaders of the Canadian mining industry, who have been major donors to the charitable endeavors of former President Bill Clinton and his family. Members of that group built, financed and eventually sold off to the Russians a company that would become known as Uranium One.

Beyond mines in Kazakhstan that are among the most lucrative in the world, the sale gave the Russians control of one-fifth of all uranium production capacity in the United States. Since uranium is considered a strategic asset, with implications for national security, the deal had to be approved by a committee composed of representatives from a number of United States government agencies. Among the agencies that eventually signed off was the State Department, then headed by Mr. Clinton’s wife, Hillary Rodham Clinton.

As the Russians gradually assumed control of Uranium One in three separate transactions from 2009 to 2013, Canadian records show, a flow of cash made its way to the Clinton Foundation. Uranium One’s chairman used his family foundation to make four donations totaling $2.35 million. Those contributions were not publicly disclosed by the Clintons, despite an agreement Mrs. Clinton had struck with the Obama White House to publicly identify all donors. Other people with ties to the company made donations as well.

And shortly after the Russians announced their intention to acquire a majority stake in Uranium One, Mr. Clinton received $500,000 for a Moscow speech from a Russian investment bank with links to the Kremlin that was promoting Uranium One stock.

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Frank Giustra, right, a mining financier, has donated $31.3 million to the foundation run by former President Bill Clinton, left.CreditJoaquin Sarmiento/Agence France-Presse — Getty Images

At the time, both Rosatom and the United States government made promises intended to ease concerns about ceding control of the company’s assets to the Russians. Those promises have been repeatedly broken, records show.

The New York Times’s examination of the Uranium One deal is based on dozens of interviews, as well as a review of public records and securities filings in Canada, Russia and the United States. Some of the connections between Uranium One and the Clinton Foundation were unearthed by Peter Schweizer, a former fellow at the right-leaning Hoover Institution and author of the forthcoming book “Clinton Cash.” Mr. Schweizer provided a preview of material in the book to The Times, which scrutinized his information and built upon it with its own reporting.

Whether the donations played any role in the approval of the uranium deal is unknown. But the episode underscores the special ethical challenges presented by the Clinton Foundation, headed by a former president who relied heavily on foreign cash to accumulate $250 million in assets even as his wife helped steer American foreign policy as secretary of state, presiding over decisions with the potential to benefit the foundation’s donors.

In a statement, Brian Fallon, a spokesman for Mrs. Clinton’s presidential campaign, said no one “has ever produced a shred of evidence supporting the theory that Hillary Clinton ever took action as secretary of state to support the interests of donors to the Clinton Foundation.” He emphasized that multiple United States agencies, as well as the Canadian government, had signed off on the deal and that, in general, such matters were handled at a level below the secretary. “To suggest the State Department, under then-Secretary Clinton, exerted undue influence in the U.S. government’s review of the sale of Uranium One is utterly baseless,” he added.

American political campaigns are barred from accepting foreign donations. But foreigners may give to foundations in the United States. In the days since Mrs. Clinton announced her candidacy for president, the Clinton Foundation has announced changes meant to quell longstanding concerns about potential conflicts of interest in such donations; it has limited donations from foreign governments, with many, like Russia’s, barred from giving to all but its health care initiatives. That policy stops short of a more stringent agreement between Mrs. Clinton and the Obama administration that was in effect while she was secretary of state.

Either way, the Uranium One deal highlights the limits of such prohibitions. The foundation will continue to accept contributions from foreign sources whose interests, like Uranium One’s, may overlap with those of foreign governments, some of which may be at odds with the United States.

When the Uranium One deal was approved, the geopolitical backdrop was far different from today’s. The Obama administration was seeking to “reset” strained relations with Russia. The deal was strategically important to Mr. Putin, who shortly after the Americans gave their blessing sat down for a staged interview with Rosatom’s chief executive, Sergei Kiriyenko. “Few could have imagined in the past that we would own 20 percent of U.S. reserves,” Mr. Kiriyenko told Mr. Putin.

GRAPHIC

Donations to the Clinton Foundation, and a Russian Uranium Takeover

Uranium investors gave millions to the Clinton Foundation while Secretary of State Hillary Rodham Clinton’s office was involved in approving a Russian bid for mining assets in Kazakhstan and the United States.

 OPEN GRAPHIC

Now, after Russia’s annexation of Crimea and aggression in Ukraine, the Moscow-Washington relationship is devolving toward Cold War levels, a point several experts made in evaluating a deal so beneficial to Mr. Putin, a man known to use energy resources to project power around the world.

“Should we be concerned? Absolutely,” said Michael McFaul, who served under Mrs. Clinton as the American ambassador to Russia but said he had been unaware of the Uranium One deal until asked about it. “Do we want Putin to have a monopoly on this? Of course we don’t. We don’t want to be dependent on Putin for anything in this climate.”

A Seat at the Table

The path to a Russian acquisition of American uranium deposits began in 2005 in Kazakhstan, where the Canadian mining financier Frank Giustra orchestrated his first big uranium deal, with Mr. Clinton at his side.

The two men had flown aboard Mr. Giustra’s private jet to Almaty, Kazakhstan, where they dined with the authoritarian president, Nursultan A. Nazarbayev. Mr. Clinton handed the Kazakh president a propaganda coup when he expressed support for Mr. Nazarbayev’s bid to head an international elections monitoring group, undercutting American foreign policy and criticism of Kazakhstan’s poor human rights record by, among others, his wife, then a senator.

Within days of the visit, Mr. Giustra’s fledgling company, UrAsia Energy Ltd., signed a preliminary deal giving it stakes in three uranium mines controlled by the state-run uranium agency Kazatomprom.

If the Kazakh deal was a major victory, UrAsia did not wait long before resuming the hunt. In 2007, it merged with Uranium One, a South African company with assets in Africa and Australia, in what was described as a $3.5 billion transaction. The new company, which kept the Uranium One name, was controlled by UrAsia investors including Ian Telfer, a Canadian who became chairman. Through a spokeswoman, Mr. Giustra, whose personal stake in the deal was estimated at about $45 million, said he sold his stake in 2007.

Soon, Uranium One began to snap up companies with assets in the United States. In April 2007, it announced the purchase of a uranium mill in Utah and more than 38,000 acres of uranium exploration properties in four Western states, followed quickly by the acquisition of the Energy Metals Corporation and its uranium holdings in Wyoming, Texas and Utah. That deal made clear that Uranium One was intent on becoming “a powerhouse in the United States uranium sector with the potential to become the domestic supplier of choice for U.S. utilities,” the company declared.

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Ian Telfer was chairman of Uranium One and made large donations to the Clinton Foundation.CreditGalit Rodan/Bloomberg, via Getty Images

Still, the company’s story was hardly front-page news in the United States — until early 2008, in the midst of Mrs. Clinton’s failed presidential campaign, when The Times published an article revealing the 2005 trip’s link to Mr. Giustra’s Kazakhstan mining deal. It also reported that several months later, Mr. Giustra had donated $31.3 million to Mr. Clinton’s foundation.

(In a statement issued after this article appeared online, Mr. Giustra said he was “extremely proud” of his charitable work with Mr. Clinton, and he urged the media to focus on poverty, health care and “the real challenges of the world.”)

Though the 2008 article quoted the former head of Kazatomprom, Moukhtar Dzhakishev, as saying that the deal required government approval and was discussed at a dinner with the president, Mr. Giustra insisted that it was a private transaction, with no need for Mr. Clinton’s influence with Kazakh officials. He described his relationship with Mr. Clinton as motivated solely by a shared interest in philanthropy.

As if to underscore the point, five months later Mr. Giustra held a fund-raiser for the Clinton Giustra Sustainable Growth Initiative, a project aimed at fostering progressive environmental and labor practices in the natural resources industry, to which he had pledged $100 million. The star-studded gala, at a conference center in Toronto, featured performances by Elton John and Shakira and celebrities like Tom Cruise, John Travolta and Robin Williams encouraging contributions from the many so-called F.O.F.s — Friends of Frank — in attendance, among them Mr. Telfer. In all, the evening generated $16 million in pledges, according to an article in The Globe and Mail.

“None of this would have been possible if Frank Giustra didn’t have a remarkable combination of caring and modesty, of vision and energy and iron determination,” Mr. Clinton told those gathered, adding: “I love this guy, and you should, too.”

But what had been a string of successes was about to hit a speed bump.

Arrest and Progress

By June 2009, a little over a year after the star-studded evening in Toronto, Uranium One’s stock was in free-fall, down 40 percent. Mr. Dzhakishev, the head of Kazatomprom, had just been arrested on charges that he illegally sold uranium deposits to foreign companies, including at least some of those won by Mr. Giustra’s UrAsia and now owned by Uranium One.

Publicly, the company tried to reassure shareholders. Its chief executive, Jean Nortier, issued a confident statement calling the situation a “complete misunderstanding.” He also contradicted Mr. Giustra’s contention that the uranium deal had not required government blessing. “When you do a transaction in Kazakhstan, you need the government’s approval,” he said, adding that UrAsia had indeed received that approval.

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Bill Clinton met with Vladimir V. Putin in Moscow in 2010. CreditMikhail Metzel/Associated Press

But privately, Uranium One officials were worried they could lose their joint mining ventures. American diplomatic cables made public by WikiLeaks also reflect concerns that Mr. Dzhakishev’s arrest was part of a Russian power play for control of Kazakh uranium assets.

At the time, Russia was already eying a stake in Uranium One, Rosatom company documents show. Rosatom officials say they were seeking to acquire mines around the world because Russia lacks sufficient domestic reserves to meet its own industry needs.

It was against this backdrop that the Vancouver-based Uranium One pressed the American Embassy in Kazakhstan, as well as Canadian diplomats, to take up its cause with Kazakh officials, according to the American cables.

“We want more than a statement to the press,” Paul Clarke, a Uranium One executive vice president, told the embassy’s energy officer on June 10, the officer reported in a cable. “That is simply chitchat.” What the company needed, Mr. Clarke said, was official written confirmation that the licenses were valid.

The American Embassy ultimately reported to the secretary of state, Mrs. Clinton. Though the Clarke cable was copied to her, it was given wide circulation, and it is unclear if she would have read it; the Clinton campaign did not address questions about the cable.

What is clear is that the embassy acted, with the cables showing that the energy officer met with Kazakh officials to discuss the issue on June 10 and 11.

Three days later, a wholly owned subsidiary of Rosatom completed a deal for 17 percent of Uranium One. And within a year, the Russian government substantially upped the ante, with a generous offer to shareholders that would give it a 51 percent controlling stake. But first, Uranium One had to get the American government to sign off on the deal.

Among the Donors to the Clinton Foundation

Frank Giustra
$31.3 million and a pledge for $100 million more
He built a company that later merged with Uranium One.
Ian Telfer
$2.35 million
Mining investor who was chairman of Uranium One when an arm of the Russian government, Rosatom, acquired it.
Paul Reynolds
$1 million to $5 million
Adviser on 2007 UrAsia-Uranium One merger. Later helped raise $260 million for the company.
Frank Holmes
$250,000 to $500,000
Chief Executive of U.S. Global Investors Inc., which held $4.7 million in Uranium One shares in the first quarter of 2011.
Neil Woodyer
$50,000 to $100,000
Adviser to Uranium One. Founded Endeavour Mining with Mr. Giustra.
GMP Securities Ltd.
Donating portion of profits
Worked on debt issue that raised $260 million for Uranium One.

The Power to Say No

When a company controlled by the Chinese government sought a 51 percent stake in a tiny Nevada gold mining operation in 2009, it set off a secretive review process in Washington, where officials raised concerns primarily about the mine’s proximity to a military installation, but also about the potential for minerals at the site, including uranium, to come under Chinese control. The officials killed the deal.

Such is the power of the Committee on Foreign Investment in the United States. The committee comprises some of the most powerful members of the cabinet, including the attorney general, the secretaries of the Treasury, Defense, Homeland Security, Commerce and Energy, and the secretary of state. They are charged with reviewing any deal that could result in foreign control of an American business or asset deemed important to national security.

The national security issue at stake in the Uranium One deal was not primarily about nuclear weapons proliferation; the United States and Russia had for years cooperated on that front, with Russia sending enriched fuel from decommissioned warheads to be used in American nuclear power plants in return for raw uranium.

Instead, it concerned American dependence on foreign uranium sources. While the United States gets one-fifth of its electrical power from nuclear plants, it produces only around 20 percent of the uranium it needs, and most plants have only 18 to 36 months of reserves, according to Marin Katusa, author of “The Colder War: How the Global Energy Trade Slipped From America’s Grasp.”

“The Russians are easily winning the uranium war, and nobody’s talking about it,” said Mr. Katusa, who explores the implications of the Uranium One deal in his book. “It’s not just a domestic issue but a foreign policy issue, too.”

When ARMZ, an arm of Rosatom, took its first 17 percent stake in Uranium One in 2009, the two parties signed an agreement, found in securities filings, to seek the foreign investment committee’s review. But it was the 2010 deal, giving the Russians a controlling 51 percent stake, that set off alarm bells. Four members of the House of Representatives signed a letter expressing concern. Two more began pushing legislation to kill the deal.

Senator John Barrasso, a Republican from Wyoming, where Uranium One’s largest American operation was, wrote to President Obama, saying the deal “would give the Russian government control over a sizable portion of America’s uranium production capacity.”

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President Putin during a meeting with Rosatom’s chief executive, Sergei Kiriyenko, in December 2007.CreditDmitry Astakhov/Ria Novosti, via Agence France-Presse — Getty Images

“Equally alarming,” Mr. Barrasso added, “this sale gives ARMZ a significant stake in uranium mines in Kazakhstan.”

Uranium One’s shareholders were also alarmed, and were “afraid of Rosatom as a Russian state giant,” Sergei Novikov, a company spokesman, recalled in an interview. He said Rosatom’s chief, Mr. Kiriyenko, sought to reassure Uranium One investors, promising that Rosatom would not break up the company and would keep the same management, including Mr. Telfer, the chairman. Another Rosatom official said publicly that it did not intend to increase its investment beyond 51 percent, and that it envisioned keeping Uranium One a public company

American nuclear officials, too, seemed eager to assuage fears. The Nuclear Regulatory Commission wrote to Mr. Barrasso assuring him that American uranium would be preserved for domestic use, regardless of who owned it.

“In order to export uranium from the United States, Uranium One Inc. or ARMZ would need to apply for and obtain a specific NRC license authorizing the export of uranium for use as reactor fuel,” the letter said.

Still, the ultimate authority to approve or reject the Russian acquisition rested with the cabinet officials on the foreign investment committee, including Mrs. Clinton — whose husband was collecting millions in donations from people associated with Uranium One.

Undisclosed Donations

Before Mrs. Clinton could assume her post as secretary of state, the White House demanded that she sign a memorandum of understanding placing limits on the activities of her husband’s foundation. To avoid the perception of conflicts of interest, beyond the ban on foreign government donations, the foundation was required to publicly disclose all contributors.

To judge from those disclosures — which list the contributions in ranges rather than precise amounts — the only Uranium One official to give to the Clinton Foundation was Mr. Telfer, the chairman, and the amount was relatively small: no more than $250,000, and that was in 2007, before talk of a Rosatom deal began percolating.

Photo

Uranium One’s Russian takeover was approved by the United States while Hillary Rodham Clinton was secretary of state. CreditDoug Mills/The New York Times

But a review of tax records in Canada, where Mr. Telfer has a family charity called the Fernwood Foundation, shows that he donated millions of dollars more, during and after the critical time when the foreign investment committee was reviewing his deal with the Russians. With the Russians offering a special dividend, shareholders like Mr. Telfer stood to profit.

His donations through the Fernwood Foundation included $1 million reported in 2009, the year his company appealed to the American Embassy to help it keep its mines in Kazakhstan; $250,000 in 2010, the year the Russians sought majority control; as well as $600,000 in 2011 and $500,000 in 2012. Mr. Telfer said that his donations had nothing to do with his business dealings, and that he had never discussed Uranium One with Mr. or Mrs. Clinton. He said he had given the money because he wanted to support Mr. Giustra’s charitable endeavors with Mr. Clinton. “Frank and I have been friends and business partners for almost 20 years,” he said.

The Clinton campaign left it to the foundation to reply to questions about the Fernwood donations; the foundation did not provide a response.

Mr. Telfer’s undisclosed donations came in addition to between $1.3 million and $5.6 million in contributions, which were reported, from a constellation of people with ties to Uranium One or UrAsia, the company that originally acquired Uranium One’s most valuable asset: the Kazakh mines. Without those assets, the Russians would have had no interest in the deal: “It wasn’t the goal to buy the Wyoming mines. The goal was to acquire the Kazakh assets, which are very good,” Mr. Novikov, the Rosatom spokesman, said in an interview.

Amid this influx of Uranium One-connected money, Mr. Clinton was invited to speak in Moscow in June 2010, the same month Rosatom struck its deal for a majority stake in Uranium One.

The $500,000 fee — among Mr. Clinton’s highest — was paid by Renaissance Capital, a Russian investment bank with ties to the Kremlin that has invited world leaders, including Tony Blair, the former British prime minister, to speak at its investor conferences.

Renaissance Capital analysts talked up Uranium One’s stock, assigning it a “buy” rating and saying in a July 2010 research report that it was “the best play” in the uranium markets. In addition, Renaissance Capital turned up that same year as a major donor, along with Mr. Giustra and several companies linked to Uranium One or UrAsia, to a small medical charity in Colorado run by a friend of Mr. Giustra’s. In a newsletter to supporters, the friend credited Mr. Giustra with helping get donations from “businesses around the world.”

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John Christensen sold the mining rights on his ranch in Wyoming to Uranium One.CreditMatthew Staver for The New York Times

Renaissance Capital would not comment on the genesis of Mr. Clinton’s speech to an audience that included leading Russian officials, or on whether it was connected to the Rosatom deal. According to a Russian government news service, Mr. Putin personally thanked Mr. Clinton for speaking.

A person with knowledge of the Clinton Foundation’s fund-raising operation, who requested anonymity to speak candidly about it, said that for many people, the hope is that money will in fact buy influence: “Why do you think they are doing it — because they love them?” But whether it actually does is another question. And in this case, there were broader geopolitical pressures that likely came into play as the United States considered whether to approve the Rosatom-Uranium One deal.

Diplomatic Considerations

If doing business with Rosatom was good for those in the Uranium One deal, engaging with Russia was also a priority of the incoming Obama administration, which was hoping for a new era of cooperation as Mr. Putin relinquished the presidency — if only for a term — to Dmitri A. Medvedev.

“The assumption was we could engage Russia to further core U.S. national security interests,” said Mr. McFaul, the former ambassador.

It started out well. The two countries made progress on nuclear proliferation issues, and expanded use of Russian territory to resupply American forces in Afghanistan. Keeping Iran from obtaining a nuclear weapon was among the United States’ top priorities, and in June 2010 Russia signed off on a United Nations resolution imposing tough new sanctions on that country.

Two months later, the deal giving ARMZ a controlling stake in Uranium One was submitted to the Committee on Foreign Investment in the United States for review. Because of the secrecy surrounding the process, it is hard to know whether the participants weighed the desire to improve bilateral relations against the potential risks of allowing the Russian government control over the biggest uranium producer in the United States. The deal was ultimately approved in October, following what two people involved in securing the approval said had been a relatively smooth process.

Not all of the committee’s decisions are personally debated by the agency heads themselves; in less controversial cases, deputy or assistant secretaries may sign off. But experts and former committee members say Russia’s interest in Uranium One and its American uranium reserves seemed to warrant attention at the highest levels.

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Moukhtar Dzhakishev was arrested in 2009 while the chief of Kazatomprom.CreditDaniel Acker/Bloomberg, via Getty Images

“This deal had generated press, it had captured the attention of Congress and it was strategically important,” said Richard Russell, who served on the committee during the George W. Bush administration. “When I was there invariably any one of those conditions would cause this to get pushed way up the chain, and here you had all three.”

And Mrs. Clinton brought a reputation for hawkishness to the process; as a senator, she was a vocal critic of the committee’s approval of a deal that would have transferred the management of major American seaports to a company based in the United Arab Emirates, and as a presidential candidate she had advocated legislation to strengthen the process.

The Clinton campaign spokesman, Mr. Fallon, said that in general, these matters did not rise to the secretary’s level. He would not comment on whether Mrs. Clinton had been briefed on the matter, but he gave The Times a statement from the former assistant secretary assigned to the foreign investment committee at the time, Jose Fernandez. While not addressing the specifics of the Uranium One deal, Mr. Fernandez said, “Mrs. Clinton never intervened with me on any C.F.I.U.S. matter.”

Mr. Fallon also noted that if any agency had raised national security concerns about the Uranium One deal, it could have taken them directly to the president.

Anne-Marie Slaughter, the State Department’s director of policy planning at the time, said she was unaware of the transaction — or the extent to which it made Russia a dominant uranium supplier. But speaking generally, she urged caution in evaluating its wisdom in hindsight.

“Russia was not a country we took lightly at the time or thought was cuddly,” she said. “But it wasn’t the adversary it is today.”

That renewed adversarial relationship has raised concerns about European dependency on Russian energy resources, including nuclear fuel. The unease reaches beyond diplomatic circles. In Wyoming, where Uranium One equipment is scattered across his 35,000-acre ranch, John Christensen is frustrated that repeated changes in corporate ownership over the years led to French, South African, Canadian and, finally, Russian control over mining rights on his property.

“I hate to see a foreign government own mining rights here in the United States,” he said. “I don’t think that should happen.”

Mr. Christensen, 65, noted that despite assurances by the Nuclear Regulatory Commission that uranium could not leave the country without Uranium One or ARMZ obtaining an export license — which they do not have — yellowcake from his property was routinely packed into drums and trucked off to a processing plant in Canada.

Asked about that, the commission confirmed that Uranium One has, in fact, shipped yellowcake to Canada even though it does not have an export license. Instead, the transport company doing the shipping, RSB Logistic Services, has the license. A commission spokesman said that “to the best of our knowledge” most of the uranium sent to Canada for processing was returned for use in the United States. A Uranium One spokeswoman, Donna Wichers, said 25 percent had gone to Western Europe and Japan. At the moment, with the uranium market in a downturn, nothing is being shipped from the Wyoming mines.

The “no export” assurance given at the time of the Rosatom deal is not the only one that turned out to be less than it seemed. Despite pledges to the contrary, Uranium One was delisted from the Toronto Stock Exchange and taken private. As of 2013, Rosatom’s subsidiary, ARMZ, owned 100 percent of it.

Correction: April 23, 2015 
An earlier version of this article misstated, in one instance, the surname of a fellow at the Hoover Institution. He is Peter Schweizer, not Schweitzer.An earlier version also incorrectly described the Clinton Foundation’s agreement with the Obama administration regarding foreign-government donations while Hillary Rodham Clinton was secretary of state. Under the agreement, the foundation would not accept new donations from foreign governments, though it could seek State Department waivers in specific cases. It was not barred from accepting all foreign-government donations.
Correction: April 30, 2015 
An article on Friday about contributions to the Clinton Foundation from people associated with a Canadian uranium-mining company described incorrectly the foundation’s agreement with the Obama administration regarding foreign-government donations while Hillary Clinton was secretary of state. Under the agreement, the foundation would not accept new donations from foreign governments, though it could seek State Department waivers in specific cases. The foundation was not barred from accepting all foreign-government donations.

FBI uncovered Russian bribery plot before Obama administration approved controversial nuclear deal with Moscow

Before the Obama administration approved a controversial deal in 2010 giving Moscow control of a large swath of American uranium, the FBI had gathered substantial evidence that 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, according to government documents and interviews.

Federal agents used a confidential U.S. witness working inside the Russian nuclear industry to gather extensive financial records, make secret recordings and intercept emails as early as 2009 that showed Moscow had compromised an American uranium trucking firm with bribes and kickbacks in violation of the Foreign Corrupt Practices Act, FBI and court documents show.

They also obtained an eyewitness account — backed by documents — indicating 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 The Hill.

The racketeering scheme was conducted “with the consent of higher level officials” in Russia who “shared the proceeds” from the kickbacks, one agent declared in an affidavit years later.

Rather than bring immediate charges in 2010, however, the Department of Justice (DOJ) continued investigating the matter for nearly four more years, essentially leaving the American public and Congress in the dark about Russian nuclear corruption on U.S. soil during a period when the Obama administration made two major decisions benefiting Putin’s commercial nuclear ambitions.

The first decision occurred in October 2010, when the State Department and government agencies on the Committee on Foreign Investment in the United States unanimously approved the partial sale of Canadian mining company Uranium One to the Russian nuclear giant Rosatom, giving Moscow control of more than 20 percent of America’s uranium supply.

When this sale was used by Trump on the campaign trail last year, Hillary Clinton’s spokesman said she was not involved in the committee review and noted the State Department official who handled it said she “never intervened … on any [Committee on Foreign Investment in the United States] matter.”

In 2011, the administration gave approval for Rosatom’s Tenex subsidiary to sell commercial uranium to U.S. nuclear power plants in a partnership with the United States Enrichment Corp. Before then, Tenex had been limited to selling U.S. nuclear power plants reprocessed uranium recovered from dismantled Soviet nuclear weapons under the 1990s Megatons to Megawatts peace program.

“The Russians were compromising American contractors in the nuclear industry with kickbacks and extortion threats, all of which raised legitimate national security concerns. And none of that evidence got aired before the Obama administration made those decisions,” a person who worked on the case told The Hill, speaking on condition of anonymity for fear of retribution by U.S. or Russian officials.

The Obama administration’s decision to approve Rosatom’s purchase of Uranium One has been a source of political controversy since 2015.

That’s when conservative author Peter Schweitzer and The New York Times documented how Bill Clinton collected hundreds of thousands of dollars in Russian speaking fees and his charitable foundation collected millions in donations from parties interested in the deal while Hillary Clinton presided on the Committee on Foreign Investment in the United States.

The Obama administration and the Clintons defended their actions at the time, insisting there was no evidence that any Russians or donors engaged in wrongdoing and there was no national security reason for any member of the committee to oppose the Uranium One deal.

But FBI, Energy Department and court documents reviewed by The Hill show the FBI in fact had gathered substantial evidence well before the committee’s decision that Vadim Mikerin — the main Russian overseeing Putin’s nuclear expansion inside the United States — was engaged in wrongdoing starting in 2009.

Then-Attorney General Eric Holder was among the Obama administration officials joining Hillary Clinton on the Committee on Foreign Investment in the United States at the time the Uranium One deal was approved. Multiple current and former government officials told The Hill they did not know whether the FBI or DOJ ever alerted committee members to the criminal activity they uncovered.

Spokesmen for Holder and Clinton did not return calls seeking comment. The Justice Department also didn’t comment.

Mikerin was a director of Rosatom’s Tenex in Moscow since the early 2000s, where he oversaw Rosatom’s nuclear collaboration with the United States under the Megatons to Megwatts program and its commercial uranium sales to other countries. In 2010, Mikerin was dispatched to the U.S. on a work visa approved by the Obama administration to open Rosatom’s new American arm called Tenam.

Between 2009 and January 2012, Mikerin “did knowingly and willfully combine, conspire confederate and agree with other persons … to obstruct, delay and affect commerce and the movement of an article and commodity (enriched uranium) in commerce by extortion,” a November 2014 indictment stated.

His illegal conduct was captured with the help of a confidential witness, an American businessman, who began making kickback payments at Mikerin’s direction and with the permission of the FBI. The first kickback payment recorded by the FBI through its informant was dated Nov. 27, 2009, the records show.

In evidentiary affidavits signed in 2014 and 2015, an Energy Department agent assigned to assist the FBI in the case testified that Mikerin supervised a “racketeering scheme” that involved extortion, bribery, money laundering and kickbacks that were both directed by and provided benefit to more senior officials back in Russia.

“As part of the scheme, Mikerin, with the consent of higher level officials at TENEX and Rosatom (both Russian state-owned entities) would offer no-bid contracts to US businesses in exchange for kickbacks in the form of money payments made to some offshore banks accounts,” Agent David Gadren testified.

“Mikerin apparently then shared the proceeds with other co-conspirators associated with TENEX in Russia and elsewhere,” the agent added.

The investigation was ultimately supervised by then-U.S. Attorney Rod Rosenstein, an Obama appointee who now serves as President Trump’s deputy attorney general, and then-Assistant FBI Director Andrew McCabe, now the deputy FBI director under Trump, Justice Department documents show.

Both men now play a key role in the current investigation into possible, but still unproven, collusion between Russia and Donald Trump’s campaign during the 2016 election cycle. McCabe is under congressional and Justice Department inspector general investigation in connection with money his wife’s Virginia state Senate campaign accepted in 2015 from now-Virginia Gov. Terry McAuliffe at a time when McAuliffe was reportedly under investigation by the FBI. The probe is not focused on McAuliffe’s conduct but rather on whether McCabe’s attendance violated the Hatch Act or other FBI conflict rules.

The connections to the current Russia case are many. The Mikerin probe began in 2009 when Robert Mueller, now the special counsel in charge of the Trump case, was still FBI director. And it ended in late 2015 under the direction of then-FBI Director James Comey, whom Trump fired earlier this year.

Its many twist and turns aside, the FBI nuclear industry case proved a gold mine, in part because it uncovered a new Russian money laundering apparatus that routed bribe and kickback payments through financial instruments in Cyprus, Latvia and Seychelles. A Russian financier in New Jersey was among those arrested for the money laundering, court records show.

The case also exposed a serious national security breach: Mikerin had given a contract to an American trucking firm called Transport Logistics International that held the sensitive job of transporting Russia’s uranium around the United States in return for more than $2 million in kickbacks from some of its executives, court records show.

One of Mikerin’s former employees told the FBI that Tenex officials in Russia specifically directed the scheme to “allow for padded pricing to include kickbacks,” agents testified in one court filing.

Bringing down a major Russian nuclear corruption scheme that had both compromised a sensitive uranium transportation asset inside the U.S. and facilitated international money laundering would seem a major feather in any law enforcement agency’s cap.

But the Justice Department and FBI took little credit in 2014 when Mikerin, the Russian financier and the trucking firm executives were arrested and charged.

The only public statement occurred a year later when the Justice Department put out a little-noticed press release in August 2015, just days before Labor Day. The release noted that the various defendants had reached plea deals.

By that time, the criminal cases against Mikerin had been narrowed to a single charge of money laundering for a scheme that officials admitted stretched from 2004 to 2014. And though agents had evidence of criminal wrongdoing they collected since at least 2009, federal prosecutors only cited in the plea agreement a handful of transactions that occurred in 2011 and 2012, well after the Committee on Foreign Investment in the United States’s approval.

The final court case also made no mention of any connection to the influence peddling conversations the FBI undercover informant witnessed about the Russian nuclear officials trying to ingratiate themselves with the Clintons even though agents had gathered documents showing the transmission of millions of dollars from Russia’s nuclear industry to an American entity that had provided assistance to Bill Clinton’s foundation, sources confirmed to The Hill.

The lack of fanfare left many key players in Washington with no inkling that a major Russian nuclear corruption scheme with serious national security implications had been uncovered.

On Dec. 15, 2015, the Justice Department put out a release stating that Mikerin, “a former Russian official residing in Maryland was sentenced today to 48 months in prison” and ordered to forfeit more than $2.1 million.

Ronald Hosko, who served as the assistant FBI director in charge of criminal cases when the investigation was underway, told The Hill he did not recall ever being briefed about Mikerin’s case by the counterintelligence side of the bureau despite the criminal charges that were being lodged.

“I had no idea this case was being conducted,” a surprised Hosko said in an interview.

Likewise, major congressional figures were also kept in the dark.

Former Rep. Mike Rogers (R-Mich.), who chaired the House Intelligence Committee during the time the FBI probe was being conducted, told The Hill that he had never been told anything about the Russian nuclear corruption case even though many fellow lawmakers had serious concerns about the Obama administration’s approval of the Uranium One deal.

“Not providing information on a corruption scheme before the Russian uranium deal was approved by U.S. regulators and engage appropriate congressional committees has served to undermine U.S. national security interests by the very people charged with protecting them,” he said. “The Russian efforts to manipulate our American political enterprise is breathtaking.”

This story was updated at 6:50 p.m.

http://thehill.com/policy/national-security/355749-fbi-uncovered-russian-bribery-plot-before-obama-administration

The Facts on Uranium One

Rosatom

From Wikipedia, the free encyclopedia
Rosatom
State corporation
Industry Nuclear energy
Predecessor Federal Agency on Atomic Energy
Founded 2007
Revenue RUB 821.2 billion[1] (2015)
Total assets RUB 2,029 billion[1] (2015)
Website rosatom.ru

Headquarters in Moscow

Rosatom State Atomic Energy Corporation (RussianРосатомIPA: [rɐsˈatəm]) is a state corporation (non-profit organization) in Russia, established in 2007, the regulatory body of the Russian nuclear complex. It is headquartered in Moscow. Rosatom runs all nuclear assets of the Russian Federation, both civilian and military, totaling over 360 business and research units, including all Russian nuclear icebreaker ships. Along with commercial activities which promote nuclear power and nuclear fuel cycle facilities, it acts as a governmental agent, primarily in the field of national security (nuclear deterrence), nuclear and radiation safety, basic and applied science. Besides, it has the authority to fulfill on behalf of the Russian Federation the international commitments undertaken by the nation with regard to the peaceful use of atomic energy and non-proliferation.

Rosatom holds second place in the world in terms of uranium deposits ownership, fourth in terms of nuclear energy production, produces 40% of the world’s enriched uranium and 17% of the world’s nuclear fuel. Rosatom is the only vendor in the world able to offer the nuclear industry’s entire range of products and services, starting from specialized materials and equipment and all the way through to finished products such as nuclear power plants or nuclear powered icebreakers.[2]

The Russian Government has set three major goals for Rosatom: ensure sustainable development of the nuclear weapons complex; increase nuclear contribution in electricity generation (to 25%-30% by 2030) with continued safety improvements; and strengthen the country’s position on the global market of nuclear technology, by expanding traditional markets and acquiring new ones.

Predecessors

The Ministry for Atomic Energy of the Russian Federation (RussianМинистерство по атомной энергии Российской Федерации), or MinAtom (МинАтом), was established on January 29, 1992 as a successor of the Ministry of Nuclear Engineering and Industry of the USSR. It was reorganized as the Federal Agency on Atomic Energy on March 9, 2004. According to the law adopted by the Russian parliament in November 2007, and signed by Russian President Putin in early December, the agency was transformed to a Russian state corporation.[3]

A programme of government support for the construction of nuclear power plants will finish in 2020.[4]

Activities

Rosatom controls nuclear power holding Atomenergoprom, nuclear weapons companies, research institutes and nuclear and radiation safety agencies. It also represents Russia in the world in the field of peaceful use of nuclear energy and protection of the non-proliferation regime.[3] Rosatom manages the Russian fleet of nuclear icebreakers through Atomflot.

OKB Gidropress, which develops the current Russian nuclear power station range VVER, is a subsidiary of Rosatom.[5] OKBM Afrikantov, which develops the current Russian nuclear power station BN-series such as BN-800 and BN-1200, is a subsidiary of Rosatom.

In 2017 Rosatom decided to invest in wind power, believing that rapid cost reductions in the renewable industry will become a competitive threat to nuclear power, and has started to build wind turbines.[6] Rosatom was also concerned that nuclear export opportunities were becoming exhausted.[7] In October 2017 Rosatom was reported to be considering postponing commissioning new nuclear plants in Russia due to excess generation capacity and that new nuclear electricity prices are higher than for existing plant. The Russian government is considering reducing support for new nuclear under its support contracts, called Dogovor Postavki Moshnosti (DPM), which guarantee developers a return on investment through increased payments from consumers for 20 years.[8]

Projects

Rosatom is currently building 37% of nuclear reactors under construction worldwide, generally of the OKB Gidropress VVER type.[9] Fennovoima, an electricity company in Finland, announced in September 2013 that it had chosen the OKB Gidropress VVER AES-2006 pressurized water reactor for a proposed power-generating station in PyhäjokiFinland. The construction contract is estimated to be worth 6.4 billion euros.[10]

On 11 November 2014 head of Rosatom Sergey Kiriyenko and head of Atomic Energy Organization of Iran Ali Akbar Salehi have signed a Protocol to Russian-Iranian Intergovernmental Agreement of 1992, according to which the sides will cooperate in construction of eight power generating units with VVER reactors. Four of these reactors are planned to be constructed for the second construction phase of Bushehr Nuclear Power Plant and four of them will be constructed on another site.[11]

Rosatom received $66.5 billion of foreign orders in 2012, including $28.9bn for nuclear plant construction, $24.7bn for uranium products and $12.9bn for nuclear fuel exports and associated activities.[12]

Rosatom also involves on large-scale projects such as ITER | ITER-Russia and FAIR | FAIR-Russia.

As of Jan 2017, the total portfolio orders of Rosatom reached US$300 billion.[13]

Management

The highest executive body of Rosatom is the Board of Trustees. The board is headed since 2005 by Sergei Kiriyenko. The other Board members are[14]

See also

References

  1. Jump up to:a b “Financial and Economic Results” (PDF). Rosatom. Retrieved 25 August 2017.
  2. Jump up^ “Benchmarking the global nuclear industry 2012 Heading for a fast recovery” (PDF). E&Y. 2012-10-11. Retrieved 2014-10-11.
  3. Jump up to:a b . Rosatom. 2007-12-17 http://www.skirtingboards.com/blog/news-archive/rosatom-state-corporation-registered/. Missing or empty |title= (help)
  4. Jump up^ “Rosatom chief outlines commercial vision”. World Nuclear News. 8 March 2017. Retrieved 10 March 2017.
  5. Jump up^ “Our company”. OKB Gidropress. Retrieved 20 September2011.
  6. Jump up^ Foy, Henry (28 June 2017). “Rosatom powers through nuclear industry woes”Financial Times. Retrieved 2 July 2017.
  7. Jump up^ Cottee, Matthew (2 August 2017). “China’s nuclear export ambitions run into friction”Financial Times. Retrieved 6 August 2017.
  8. Jump up^ “Rosatom considers delaying reactor commissioning”. Nuclear Engineering International. 30 October 2017. Retrieved 6 November 2017.
  9. Jump up^ “The real front in US-Russia ‘Cold War’? Nuclear power”cnbc. 2014-03-23. Retrieved 2014-11-28.
  10. Jump up^ “Fennovoima taps Russian supplier for nuke project”Yle Uutiset. September 3, 2013. Retrieved September 8, 2013.
  11. Jump up^ “Россия и Иран расширяют сотрудничество в области мирного использования атомной энергии”. 2014-11-11. Retrieved 2014-11-11.
  12. Jump up^ “Rosatom aims for $72bn in foreign orders for 2013”. Nuclear Engineering International. 13 November 2013. Retrieved 15 November 2013.
  13. Jump up^ http://themoscowjournal.com/the-portfolio-of-orders-of-rosatom-reached-300-billion.html
  14. Jump up^ Наблюдательный совет // Государственная корпорация по атомной энергии «Росатом»: Официальный сайт. Template:Проверено

External links

Uranium One

From Wikipedia, the free encyclopedia
Uranium One Inc.
Industry Mining
Founded 2005
Headquarters Toronto, OntarioCanada
Key people
Chris Sattler (CEO)
Vadim Zhivov (President)
Products Uranium
Gold
Number of employees
2,220[1]
Parent Rosatom
Website www.uranium1.com

Uranium One is a Canadian uranium mining company with headquarters in Toronto, Ontario. It has operations in AustraliaCanadaKazakhstanSouth Africa and the United States. In January 2013 Rosatom, the Russian state-owned uranium monopoly, through its subsidiary ARMZ Uranium Holding, purchased the company at a value of $1.3 billion.[2] The purchase of the company by Russian interests is, as of October 2017, under investigation by the United States House Permanent Select Committee on Intelligence.

History

On July 5, 2005, Southern Cross Resources Inc. and Aflease Gold and Uranium Resources Ltd announced that they would be merging under the name SXR Uranium One Inc.[3]

In 2007 Uranium One acquired a controlling interest in UrAsia Energy,[4] a Canadian firm with headquarters in Vancouver from Frank Giustra.[5] UrAsia has interests in rich uranium operations in Kazakhstan,[6] and UrAsia Energy’s acquisition of its Kazakhstan uranium interests from Kazatomprom followed a trip to Almaty in 2005 by Giustra and former U.S. President Bill Clinton where they met with Nursultan Nazarbayev, the leader of Kazakhstan. Substantial contributions to the Clinton Foundation by Giustra followed,[5][7] with Clinton, Giustra, and Mexican telecommunications billionaire Carlos Slim in 2007 establishing the Clinton Foundation’s Clinton Giustra Sustainable Growth Initiative to combat poverty in the developing world.[8] In addition to his initial contribution of $100 million Giustra pledged to contribute half of his future earnings from mining to the initiative.[8]

In June 2009, the Russian uranium mining company ARMZ Uranium Holding Co. (ARMZ), a part of Rosatom, acquired 16.6% of shares in Uranium One in exchange for a 50% interest in the Karatau uranium mining project, a joint venture with Kazatomprom.[9] In June 2010, Uranium One acquired 50% and 49% respective interests in southern Kazakhstan-based Akbastau and Zarechnoye uranium mines from ARMZ. In exchange, ARMZ increased its stake in Uranium One to 51%. The acquisition resulted in a 60% annual production increase at Uranium One, from approximately 10 million to 16 million lb.[10][11] The deal was subject to anti-trust and other conditions and was not finalized until the companies received Kazakh regulatory approvals, approval under Canadian investment law, clearance by the US Committee on Foreign Investments, and approvals from both the Toronto and Johannesburg stock exchanges. The deal was finalized by the end of 2010.[11] Uranium One’s extraction rights in the U.S. amounted to 0.2% of the world’s uranium production.[12]Uranium One paid its minority shareholders a dividend of 1.06 US Dollars per share at the end of 2010.[citation needed]

ARMZ took complete control of Uranium One in January 2013 by buying all shares it did not already own.[2] In October 2013, Uranium One Inc. became a private company and a wholly owned indirect subsidiary of Rosatom.[3][13] From 2012 to 2014, an unspecified amount of Uranium was reportedly exported to Canada via a Kentucky-based trucking firm with an existing export license; most of the processed uranium was returned to the U.S., with approximately 25% going to Western Europe and Japan.[14][15]

Congressional investigation

Since uranium is considered a strategic asset with national security implications, the acquisition of Uranium One by Rosatom was reviewed by the Committee on Foreign Investment in the United States (CFIUS), a committee of nine government agencies including the United States Department of State, which was then headed by Hillary Clinton.[16][17][18] The voting members of the committee can object to such a foreign transaction, but the final decision then rests with the president.[19]

In April 2015, The New York Times wrote that, during the acquisition, the family foundation of Uranium One’s chairman made $2.35 million in donations to the Clinton Foundation. The donations were legal but not publicly disclosed by the Clinton Foundation, despite an agreement with the White House to disclose all contributors.[20] In addition, a Russian investment bank with ties to the Kremlin and which was promoting Uranium One stock paid Bill Clinton $500,000 for a speech in Moscow shortly after the acquisition was announced.[17][18] Several members of Clinton’s State Department staff and officials from the Obama-era Department of Justice have said that CFIUS reviews are handled by civil servants and that it would be unlikely that Clinton would have had more than nominal involvement in her department’s signing off on the acquisition.[21] According to Snopes, the timing of donations might have been questionable if Hillary Clinton had played a key role in approving the deal, but all evidence suggests that she did not and may in fact have had no role in approving the deal at all.[22]

In October 2017, following a report by John F. Solomon and Alison Spann published in The Hill and citing anonymous sources,[23][24] the United States House Permanent Select Committee on Intelligence opened an investigation into the circumstances surrounding the sale of Uranium One.[21]

FactCheck.org reported that there was “no evidence” connecting the Uranium One–Rosatom merger deal with a money laundering and bribery case involving a different Rosatom subsidiary which resulted in the conviction of a Russian individual in 2015, contrary to what is implied in the Solomon-Spann story.[20][25]Glenn Kessler of The Washington Post wrote that the problem with some of the accusations that Republican commentators levied against Clinton is that she “by all accounts, did not participate in any discussions regarding the Uranium One sale.”[26]

In October 2017, President Trump directed the U.S. Department of Justice (DOJ) to lift a “gag order” it had placed on a former FBI informant involved the investigation. The DOJ released the informant from his nondisclosure agreement on October 25, 2017,[27][28][29]authorizing him to provide the leaders of the Senate Judiciary Committee, House Oversight Committee, and the House Permanent Select Committee on Intelligence “any information or documents he has concerning alleged corruption or bribery involving transactions in the uranium market” involving Rosatom, its subsidiaries Tenex and Uranium One, and the Clinton Foundation.[30]

During a C-SPAN interview, Hillary Clinton said that any allegations that she was bribed to approve the Uranium One deal were “baloney”.[31]

See also

References

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

Committee on Foreign Investment in the United States

From Wikipedia, the free encyclopedia

The Committee on Foreign Investment in the United States (CFIUS, commonly pronounced as if “Cifius” /ˈsɪfi.əs/) is an inter-agency committee of the United States Government that reviews the national security implications of foreign investments in U.S. companies or operations. Chaired by the United States Secretary of the Treasury, CFIUS includes representatives from 16 U.S. departments and agencies, including the DefenseState and Commerce departments, as well as (most recently) the Department of Homeland Security. CFIUS was established by President Gerald Ford‘s Executive Order11858 in 1975. President Reagan delegated the review process to the Committee on Foreign Investment in the United States with the Executive Order 12661 in 1988. This was in response to U.S. Congress giving authority to the President to review foreign investments, in the form of Exon-Florio Amendment.

Process

All companies proposing to be involved in an acquisition by a foreign firm are supposed to voluntarily notify CFIUS, but CFIUS can review transactions that are not voluntarily submitted.

CFIUS’ primary concern in most reviews is that technology or funds from an acquired U.S. business might be transferred to a sanctioned country as a result of being acquired by a foreign acquirer.[1]

CFIUS reviews begin with a 30-day decision to authorize a transaction or begin a statutory investigation. If the latter is chosen, the committee has another 45 days to decide whether to permit the acquisition or order divestment. Most transactions submitted to CFIUS are approved without the statutory investigation.[2] However, in 2012 about 40% of the 114 cases submitted to CFIUS proceeded to investigation.[3]

CFIUS provides close scrutiny to acquisitions of critical infrastructure, including public health or telecommunications, among others.[4]

CFIUS has looked at the “restrictions on sale of advanced computers to any of a long list of foreign recipients, ranging from China to Iran.”[5] CFIUS reviews even deals with firms from U.S. allies, such as BAE Systems‘ early-2005 acquisition of United Defense. This and the vast majority of transactions submitted to CFIUS are approved without difficulty. But at least one deal has been called off when CFIUS began to take a closer look.[6]

History

In 1975, President Ford created the Committee by Executive Order11858.[7][8] It was composed of the Secretary of the Treasury as the chairman, Secretary of StateSecretary of DefenseSecretary of Commerce, the Assistant to the President for Economic Affairs, and the Executive Director of the Council on International Economic Policy. The Executive Order also stipulated that the Committee would have “primary continuing responsibility within the Executive Branch for monitoring the impact of foreign investment in the United States, both direct and portfolio, and for coordinating the implementation of United States policy on such investment.” In particular, CFIUS was directed to:[9]

  1. arrange for the preparation of analyses of trends and significant developments in foreign investments in the United States;
  2. provide guidance on arrangements with foreign governments for advance consultations on prospective major foreign governmental investments in the United States;
  3. review investments in the United States which, in the judgment of the Committee, might have major implications for United States national interests; and
  4. consider proposals for new legislation or regulations relating to foreign investment as may appear necessary.

In 1980, President Jimmy Carter added the United States Trade Representative and substituted the Chairman of the Council of Economic Advisers for the Executive Director of the Council on International Economic Policy by Executive Order12188.[8][10]

In 1988, the Exon–Florio Amendment was the result of national security concerns in Congress caused by the proposed purchase of Fairchild Semiconductor by Fujitsu.[8][11][12] The Exon-Florio Amendment granted the President the authority to block proposed mergers, acquisitions, and takeovers that threaten national security.[8] In 1988, President Ronald Reagan added the Attorney General and the Director of the Office of Management and Budget by Executive Order12661.[8][13]

In 1992, the Byrd Amendment required CFIUS to investigate proposed mergers, acquisitions, and takeovers where the acquirer is acting on behalf of a foreign government and affects national security.[8] In 1993, President Bill Clinton added the Director of the Office of Science and Technology Policy, the National Security Advisor, and the Assistant to the President for Economic Policy by Executive Order12860.[8][14] In 2003, President George W. Bush added the Secretary of Homeland Security by Executive Order13286.[8][15]

The Foreign Investment and National Security Act of 2007 (FINSA) established the Committee by statutory authority, reduced membership to 6 cabinet members and the Attorney General, added the Secretary of Labor and the Director of National Intelligence, and removed 7 White House appointees.[8] In 2008, President Bush added the United States Trade Representative and the Director of the Office of Science and Technology Policy by Executive Order13456 implementing the law.[8][16] FINSA requires the President to conduct a national security investigation of certain proposed investment transactions, provides a broader oversight role for Congress, and keeps the President as the only officer with the authority to suspend or prohibit mergers, acquisitions, and takeovers.[8]

Opinions on the Committee

In February 2006, Richard Perle gave his opinion on CFIUS when he related to CBS News his experience with the panel during the Reagan administration: “The committee almost never met, and when it deliberated it was usually at a fairly low bureaucratic level.” He also added, “I think it’s a bit of a joke if we were serious about scrutinizing foreign ownership and foreign control, particularly since 9/11.”[17][18]

Others emphasize the crucial role that foreign direct investment plays in the U.S. economy, and the discouraging effect that heightened scrutiny may cause. Foreign investors in the United States, much like U.S. investors elsewhere, bring expertise and infusions of capital into often-struggling sectors of the U.S. economy. In a February 2006 interview with the New York Times, another former Reagan administration official, Clyde V. Prestowitz Jr., noted that the United States “need[s] a net inflow of capital of $3 billion a day to keep the economy afloat…. Yet all of the body language here is ‘go away.'”[19]

Notable cases

Only four foreign investments have been blocked by U.S. presidents, in 1990, 2012, 2016, and 2017,[20] though others have been considered and, often, less explicitly opposed:

  • 1990: President George H. W. Bush voided the sale of MAMCO Manufacturing to a Chinese agency, ordering China National Aero-Technology Import & Export Corporation to divest themselves of Seattle-based MAMCO[21]
  • 2000: NTT Communications‘ acquisition of Verio[citation needed]
  • 2005: The acquisition of IBM‘s personal computer and laptop unit by Lenovo was approved by President George W. Bush[20]
  • 2005: The acquisition of Sequoia Voting Systems of Oakland, California, by Smartmatic, a Dutch company contracted by Hugo Chávez‘s government to replace that country’s elections machinery[22]
  • 2005: In June 2005 a CNOOC Group (a major Chinese State-owned oil and gas corporation) subsidiary (CNOOC limited, publicly listed on the New York NYSE and Hong Kong stock exchanges) made an $18.5 billion cash offer for American oil company Unocal Corporation, topping an earlier bid by ChevronTexaco. While this offer was not opposed by the CFIUS and the Bush Administration, it was criticized by several Congressmen and, following a vote in the United States House of Representatives, the bid was referred to President George W. Bush, on the grounds that its implications for national security needed to be reviewed. On July 20, 2005 Unocal Corporation announced that it had accepted a buyout offer from ChevronTexaco for $17.1 billion, which was submitted to Unocal stockholders on August 10. On August 2 CNOOC Limited announced that it had withdrawn its bid, citing political tensions in the United States.
  • 2006: State-owned Dubai Ports World‘s planned acquisition of P&O, the lessee and operator of many terminals, mostly for container ships, in several ports, including in New York-New Jersey and others in the US.[23] This acquisition was initially approved by the CFIUS and then President G.W. Bush, but was eventually opposed by Congress (Dubai Ports World controversy).
  • 2010: Russian interests acquired a controlling interest in Uranium One, which has 20 percent of U.S. uranium extraction capacity.[24] The Nuclear Regulatory Commission approved the deal because Uranium One only has a license for uranium recovery, not uranium export.[25] All voting members of CFIUS voted in favor including Jose Fernandez, the State Department’s representative, a fact that became significant in the wake of allegations against Hillary Clinton from author Peter Schweizer.[26]
  • 2012: Ralls Corporation, owned by the Chinese Sany Group,[27] was ordered by President Barack Obama to divest itself of four small wind farm projects located too close to a U.S. Navy weapons systems training facility in Boardman, Oregon[20]
  • 2016: President Obama blocked the buying by a Chinese company of the U.S. assets of the German company Aixtron SE.[28] Separately, the New York Times reported that “United States officials blocked” a $2.6 billion deal by Philips to sell Lumileds division to GO Scale Capital and GRS Ventures over concerns regarding Chinese applications of gallium nitride.[29]
  • 2017: President Trump blocked the acquisition by a Chinese purchaser of Lattice Semiconductor.[30]

Notifications and investigations

CFIUS Notifications and Investigations, 1988–2011[31][32][33]

Year Notifications Investigations Notices
withdrawn
Presidential
decision
1988 14 1 0 1
1989 204 5 2 3
1990 295 6 2 4
1991 152 1 0 1
1992 106 2 1 1
1993 82 0 0 0
1994 69 0 0 0
1995 81 0 0 0
1996 55 0 0 0
1997 62 0 0 0
1998 65 2 2 0
1999 79 0 0 0
2000 72 1 0 1
2001 55 1 1 0
2002 43 0 0 0
2003 41 2 1 1
2004 53 2 2 0
2005 65 2 2 0
2006 111 7 19 2
2007 138 6 15 0
2008 155 23 23 0
2009 65 25 7 0
2010 93 35 12 0
2011 111 40 6 0
2012 114 45 22 1
2013 97 3 48 5
2014 147 3 51 9
Total 2,380 219 117 15

See also

References

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

Racketeer Influenced and Corrupt Organizations Act

From Wikipedia, the free encyclopedia
Racketeer Influenced and Corrupt Organizations Act
Great Seal of the United States
Long title An Act relating to the control of organized crime in the United States
Acronyms(colloquial)
  • OCCA
  • RICO
Nicknames Organized Crime Control Act of 1970
Enacted by the 91st United States Congress
Effective October 15, 1970
Citations
Public law 91-452
Statutes at Large 84 Stat. 922-3 aka 84 Stat. 941
Codification
Titles amended 18 U.S.C.: Crimes and Criminal Procedure
U.S.C.sections created 18 U.S.C. §§ 19611968
Legislative history
  • Introduced in the Senate as S. 30 by John L. McClellan(DAR)
  • Passed the Senate on January 23, 1970 (74-1)
  • Passed the House on October 7, 1970 (341-26)
  • Signed into law by President Richard Nixon on October 15, 1970

The Racketeer Influenced and Corrupt Organizations Act, commonly referred to as the RICO Act or simply RICO, is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization. The RICO Act focuses specifically on racketeering, and it allows the leaders of a syndicate to be tried for the crimes which they ordered others to do or assisted them in doing, closing a perceived loophole that allowed a person who instructed someone else to, for example, murder, to be exempt from the trial because they did not actually commit the crime personally.[1]

RICO was enacted by section 901(a) of the Organized Crime Control Act of 1970 (Pub.L. 91–452, 84 Stat. 922, enacted October 15, 1970), and is codified at 18 U.S.C. ch. 96 as 18 U.S.C. §§ 19611968G. Robert Blakey, an adviser to the United States Senate Government Operations Committee, drafted the law under the close supervision of the committee’s chairman, Senator John Little McClellan. It was enacted as Title IX of the Organized Crime Control Act of 1970, and signed into law by Richard M. Nixon. While its original use in the 1970s was to prosecute the Mafia as well as others who were actively engaged in organized crime, its later application has been more widespread.

Beginning in 1972, 33 states adopted state RICO laws to be able to prosecute similar conduct.

Summary

Under RICO, a person who has committed “at least two acts of racketeering activity” drawn from a list of 35 crimes—27 federal crimes and 8 state crimes—within a 10-year period can be charged with racketeering if such acts are related in one of four specified ways to an “enterprise”.[citation needed] Those found guilty of racketeering can be fined up to $25,000 and sentenced to 20 years in prison per racketeering count.[citation needed] In addition, the racketeer must forfeit all ill-gotten gains and interest in any business gained through a pattern of “racketeering activity.”[citation needed]

When the U.S. Attorney decides to indict someone under RICO, they have the option of seeking a pre-trial restraining order or injunction to temporarily seize a defendant’s assets and prevent the transfer of potentially forfeitable property, as well as require the defendant to put up a performance bond. This provision was placed in the law because the owners of Mafia-related shell corporations often absconded with the assets. An injunction and/or performance bond ensures that there is something to seize in the event of a guilty verdict.

In many cases, the threat of a RICO indictment can force defendants to plead guilty to lesser charges, in part because the seizure of assets would make it difficult to pay a defense attorney. Despite its harsh provisions, a RICO-related charge is considered easy to prove in court, as it focuses on patterns of behavior as opposed to criminal acts.[2]

RICO also permits a private individual “damaged in his business or property” by a “racketeer” to file a civil suit. The plaintiff must prove the existence of an “enterprise”. The defendant(s) are not the enterprise; in other words, the defendant(s) and the enterprise are not one and the same.[3] There must be one of four specified relationships between the defendant(s) and the enterprise: either the defendant(s) invested the proceeds of the pattern of racketeering activity into the enterprise (18 U.S.C. § 1962(a)); or the defendant(s) acquired or maintained an interest in, or control of, the enterprise through the pattern of racketeering activity (subsection (b)); or the defendant(s) conducted or participated in the affairs of the enterprise “through” the pattern of racketeering activity (subsection (c)); or the defendant(s) conspired to do one of the above (subsection (d)).[4] In essence, the enterprise is either the ‘prize,’ ‘instrument,’ ‘victim,’ or ‘perpetrator’ of the racketeers.[5] A civil RICO action can be filed in state or federal court.[6]

Both the criminal and civil components allow the recovery of treble damages (damages in triple the amount of actual/compensatory damages).

Although its primary intent was to deal with organized crime, Blakey said that Congress never intended it to merely apply to the Mob. He once told Time, “We don’t want one set of rules for people whose collars are blue or whose names end in vowels, and another set for those whose collars are white and have Ivy League diplomas.”[2]

Initially, prosecutors were skeptical of using RICO, mainly because it was unproven. The RICO Act was first used by the U.S. Attorney’s Office in the Southern District of New York on September 18, 1979, in the United States v. Scotto. Scotto, who was convicted on charges of racketeering, accepting unlawful labor payments, and income tax evasion, headed the International Longshoreman’s Association. During the 1980s and 1990s, federal prosecutors used the law to bring charges against several Mafia figures. The second major success was the Mafia Commission Trial, which resulted in several top leaders of New York City’s Five Families getting what amounted to life sentences. By the turn of the century, RICO cases resulted in virtually all of the top leaders of the New York Mafia being sent to prison.

State laws

Beginning in 1972, 33 states, as well as Puerto Rico and the US Virgin Islands, adopted state RICO laws to cover additional state offenses under a similar scheme.[7]

RICO predicate offenses

Under the law, the meaning of racketeering activity is set out at 18 U.S.C. § 1961. As currently amended it includes:

Pattern of racketeering activity requires at least two acts of racketeering activity, one of which occurred after the effective date of this chapter and the last of which occurred within ten years (excluding any period of imprisonment) after the commission of a prior act of racketeering activity. The U.S. Supreme Court has instructed federal courts to follow the continuity-plus-relationship test in order to determine whether the facts of a specific case give rise to an established pattern. Predicate acts are related if they “have the same or similar purposes, results, participants, victims, or methods of commission, or otherwise are interrelated by distinguishing characteristics and are not isolated events.” (H.J. Inc. v. Northwestern Bell Telephone Co.) Continuity is both a closed and open ended concept, referring to either a closed period of conduct, or to past conduct that by its nature projects into the future with a threat of repetition.

Application of RICO laws

Although some of the RICO predicate acts are extortion and blackmail, one of the most successful applications of the RICO laws has been the ability to indict and or sanction individuals for their behavior and actions committed against witnesses and victims in alleged retaliation or retribution for cooperating with federal law enforcement or intelligence agencies.

Violations of the RICO laws can be alleged in civil lawsuit cases or for criminal charges. In these instances charges can be brought against individuals or corporations in retaliation for said individuals or corporations working with law enforcement. Further, charges can also be brought against individuals or corporations who have sued or filed criminal charges against a defendant.

Anti-SLAPP (strategic lawsuit against public participation) laws can be applied in an attempt to curb alleged abuses of the legal system by individuals or corporations who use the courts as a weapon to retaliate against whistle blowers, victims, or to silence another’s speech. RICO could be alleged if it can be shown that lawyers and/or their clients conspired and collaborated to concoct fictitious legal complaints solely in retribution and retaliation for themselves having been brought before the courts.

Although the RICO laws may cover drug trafficking crimes in addition to other more traditional RICO predicate acts such as extortion, blackmail, and racketeering, large-scale and organized drug networks are now commonly prosecuted under the Continuing Criminal Enterprise Statute, also known as the “Kingpin Statute”. The CCE laws target only traffickers who are responsible for long-term and elaborate conspiracies, whereas the RICO law covers a variety of organized criminal behaviors.[8]

Famous cases

Hells Angels Motorcycle Club

In 1979 the United States Federal Government went after Sonny Barger and several members and associates of the Oakland charter of the Hells Angels using RICO. In United States vs. Barger, the prosecution team attempted to demonstrate a pattern of behavior to convict Barger and other members of the club of RICO offenses related to guns and illegal drugs. The jury acquitted Barger on the RICO charges with a hung jury on the predicate acts: “There was no proof it was part of club policy, and as much as they tried, the government could not come up with any incriminating minutes from any of our meetings mentioning drugs and guns.”[9][10]

Frank Tieri

On November 21, 1980, Genovese crime family boss Frank “Funzi” Tieri was the first Mafia boss to be convicted under the RICO Act.[citation needed]

Catholic sex abuse cases

In some jurisdictions, RICO suits have been filed against Catholic dioceses, using anti-racketeering laws to prosecute the highers-up in the episcopacy for abuses committed by those under their authority[citation needed]. E.g. a Cleveland grand jury cleared two bishops of racketeering charges, finding that their mishandling of sex abuse claims did not amount to criminal racketeering[citation needed]. Notably, a similar suit was not filed against Cardinal Bernard Law, then Archbishop/Emeritus of Boston, prior to his assignment to Vatican City.[11][12] In 2016, RICO charges were considered for cover-ups in Pennsylvania.[13]

Gil Dozier

Louisiana Commissioner of Agriculture and Forestry Gil Dozier, in office from 1976 to 1980, faced indictment with violations of both the Hobbs and the RICO laws. He was accused of compelling companies doing business with his department to make campaign contributions on his behalf. On September 23, 1980, the Baton Rouge-based United States District Court for the Middle District of Louisiana convicted Dozier of five counts of extortion and racketeering. The sentence of ten years imprisonment, later upgraded to eighteen when other offenses were determined, and a $25,000 fine was suspended pending appeal, and Dozier remained free on bail.[14] He eventually served nearly four years until a presidential commutation freed him in 1986.[15]

Key West PD

About June 1984 the Key West Police Department located in the County of Monroe, Florida, was declared a criminal enterprise under the federal RICO statutes after a lengthy United States Department of Justice investigation. Several high-ranking officers of the department, including Deputy Police Chief Raymond Cassamayor, were arrested on federal charges of running a protection racket for illegal cocaine smugglers.[16] At trial, a witness testified he routinely delivered bags of cocaine to the Deputy Chief’s office at City Hall.[17]

Michael Milken

On 29 March 1989 American financier Michael Milken was indicted on 98 counts of racketeering and fraud relating to an investigation into an allegation of insider trading and other offenses. Milken was accused of using a wide-ranging network of contacts to manipulate stock and bond prices. It was one of the first occasions that a RICO indictment was brought against an individual with no ties to organized crime. Milken pleaded guilty to six lesser felonies of securities fraud and tax evasion rather than risk spending the rest of his life in prison and ended up serving 22 months in prison. Milken was also ordered banned for life from the securities industry.[18]

On 7 September 1988, Milken’s employer, Drexel Burnham Lambert, was threatened with RICO charges respondeat superior, the legal doctrine that corporations are responsible for their employees’ crimes. Drexel avoided RICO charges by entering an Alford plea to lesser felonies of stock parking and stock manipulation. In a carefully worded plea, Drexel said it was “not in a position to dispute the allegations” made by the Government. If Drexel had been indicted under RICO statutes, it would have had to post a performance bond of up to $1 billion to avoid having its assets frozen. This would have taken precedence over all of the firm’s other obligations—including the loans that provided 96 percent of its capital base. If the bond ever had to be paid, its shareholders would have been practically wiped out. Since banks will not extend credit to a firm indicted under RICO, an indictment would have likely put Drexel out of business.[19] By at least one estimate, a RICO indictment would have destroyed the firm within a month.[20] Years later, Drexel president and CEO Fred Joseph said that Drexel had no choice but to plead guilty because “a financial institution cannot survive a RICO indictment.”[21]

Major League Baseball

In 2002, the former minority owners of the Montreal Expos baseball team filed charges under the RICO Act against Major League Baseball commissioner Bud Selig and former Expos owner Jeffrey Loria, claiming that Selig and Loria deliberately conspired to devaluethe team for personal benefit in preparation for a move.[22] If found liable, Major League Baseball could have been responsible for up to $300 million in punitive damages. The case lasted two years, successfully stalling the Expos’ move to Washington or contraction during that time. It was eventually sent to arbitration where the arbiters ruled in favor of Major League Baseball,[23] permitting the move to Washington to take place.

Pro-life activists

RICO laws were successfully cited in NOW v. Scheidler, 510 U.S. 249, 114 S. Ct. 798, 127 L.Ed. 2d 99 (1994), a suit in which certain parties, including the National Organization for Women, sought damages and an injunction against pro-life activists who physically block access to abortion clinics. The Court held that a RICO enterprise does not need an economic motive, and that the Pro-Life Action Network could therefore qualify as a RICO enterprise. The Court remanded for consideration of whether PLAN committed the requisite acts in a pattern of racketeering activity.

Los Angeles Police Department

In April 2000, federal judge William J. Rea in Los Angeles, ruling in one Rampart scandal case, said that the plaintiffs could pursue RICO claims against the LAPD, an unprecedented finding. The idea that a police organization could be characterized as a racketeering enterprise shook up City Hall and further damaged the already-tarnished image of the LAPD. However, in July 2001, U.S. District Judge Gary A. Feess said that the plaintiffs do not have standing to sue the LAPD under RICO because they are alleging personal injuries, rather than economic or property damage.[24]

Mohawk Industries

On April 26, 2006, the Supreme Court heard Mohawk Industries, Inc. v. Williams, No. 05-465547 U.S. 516 (2006), which concerned what sort of corporations fell under the scope of RICO. Mohawk Industries had allegedly hired illegal aliens, in violation of RICO. The court was asked to decide whether Mohawk Industries, along with recruiting agencies, constitutes an ‘enterprise’ that can be prosecuted under RICO, but in June of that year dismissed the case and remanded it to Court of Appeals.[25]

Latin Kings

On August 20, 2006, in Tampa, Florida, most of the state leadership members of the street gang, the Latin Kings, were arrested in connection with RICO conspiracy charges to engage in racketeering and currently await trial. The operation, called “Broken Crown”, targeted statewide leadership of the Latin Kings. The raid occurred at the Caribbean American Club. Along with Hillsborough County Sheriff’s OfficeTampa Police Department, the State Attorney’s Office, the FBIImmigration and Customs Enforcement, and the federal Bureau of Alcohol, Tobacco and Firearms were involved in the operation. Included in the arrest were leader Gilberto Santana from Brooklyn NY, Captain Luis Hernandez from Miami FL, Affiliate Celina Hernandez, Affiliate Michael Rocca, Affiliate Jessica Ramirez, Affiliate Reinaldo Arroyo, Affiliate Samual Alvarado, Omari Tolbert, Edwin DeLeon, and many others, totaling 39.

Gambino crime family

Also, in Tampa, on October 16, 2006, four members of the Gambino crime family (Capo Ronald Trucchio, Terry Scaglione, Steven Catallono, Anthony Mucciarone and associate Kevin McMahon) were tried under RICO statutes, found guilty and sentenced to life in prison.

Lucchese Crime Family

In the mid 1990s, prosecuting attorneys Gregory O’Connell and Charles Rose used RICO charges to bring down the Lucchese family within an 18-month period. Dismantling the Lucchese family had a profound financial impact on previously Mafia held businesses such as construction, garment, and garbage hauling. Here they dominated and extorted money through taxes, dues, and fees. An example of this extortion was through the garbage business. Hauling of garbage from the World Trade Center cost the building owners $1.2 million per year to be removed when the Mafia monopolized the business, as compared to $150,000 per year when competitive bids could be sought.[26]

Chicago Outfit

[citation needed]

In 2005, the U.S. Department of Justice‘s Operation Family Secrets indicted 15 Chicago Outfit (also known as the Outfit, the Chicago Mafia, the Chicago Mob, or The Organization) members and associates under RICO predicates. Five defendants were convicted of RICO violations and other crimes. Six plead guilty, two died before trial and one was too sick to be tried.

Michael Conahan and Mark Ciavarella

A federal grand jury in the Middle District of Pennsylvania handed down a 48-count indictment against former Luzerne County Court of Common Pleas Judges Michael Conahan and Mark Ciavarella.[27] The judges were charged with RICO after allegedly committing acts of mail and wire fraudtax evasionmoney laundering, and honest services fraud. The judges were accused of taking kickbacks for housing juveniles, that the judges convicted of mostly petty crimes, at a private detention center. The incident was dubbed by many local and national newspapers as the “Kids for cash scandal“.[28] On February 18, 2011, a federal jury found Michael Ciavarella guilty of racketeering because of his involvement in accepting illegal payments from Robert Mericle, the developer of PA Child Care, and Attorney Robert Powell, a co-owner of the facility. Ciavarella is facing 38 other counts in federal court.[29]

Scott W. Rothstein

Scott W. Rothstein is a disbarred lawyer and the former managing shareholder, chairman, and chief executive officer of the now-defunct Rothstein Rosenfeldt Adler law firm. He was accused of funding his philanthropy, political contributions, law firm salaries, and an extravagant lifestyle with a massive 1.2 billion dollar Ponzi scheme. On December 1, 2009, Rothstein turned himself in to federal authorities and was subsequently arrested on charges related to RICO.[30] Although his arraignment plea was not guilty, Rothstein cooperated with the government and reversed his plea to guilty of five federal crimes on January 27, 2010. Bond was denied by U.S. Magistrate Judge Robin Rosenbaum, who ruled that due to his ability to forge documents, he was considered a flight risk.[31] On June 9, 2010, Rothstein received a 50-year prison sentence after a hearing in federal court in Fort Lauderdale.[32]

AccessHealthSource

Eleven defendants were indicted on RICO charges for allegedly assisting AccessHealthSource, a local health care provider, in obtaining and maintaining lucrative contracts with local and state government entities in the city of El Paso, Texas, “through bribery of and kickbacks to elected officials or himself and others, extortion under color of authority, fraudulent schemes and artifices, false pretenses, promises and representations and deprivation of the right of citizens to the honest services of their elected local officials” (see indictment).[33]

FIFA

Fourteen defendants affiliated with FIFA were indicted under the RICO act on 47 counts for “racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with the defendants’ participation in a 24-year scheme to enrich themselves through the corruption of international soccer.” The defendants include many current and former high-ranking officers of FIFA and its affiliate CONCACAF. The defendants had allegedly used the enterprise as a front to collect millions of dollars in bribes which may have influenced Russia and Qatar’s winning bids to host the 2018 and 2022 FIFA World Cups respectively.[34]

Drummond Company

In 2015, the Drummond Company sued attorneys Terrence P. Collingsworth and William R. Scherer, the advocacy group International Rights Advocates (IRAdvocates), and Dutch businessman Albert van Bilderbeek, one of the owners of Llanos Oil, accusing them of violating RICO by alleging that Drummond had worked alongside Autodefensas Unidas de Colombia to murder labor union leaders within proximity of their Colombian coal mines, which Drummond denies.[35]

Connecticut Senator Len Fasano

In 2005, a federal jury ordered Fasano to pay $500,000 under RICO for illegally helping a client hide their assets in a bankruptcy case.[36]

Art Cohen vs. Donald J. Trump

Art Cohen vs. Donald J. Trump was a RICO[37] class action suit filed October 18, 2013,[38] accusing Donald Trump of misrepresenting Trump University “to make tens of millions of dollars” but delivering “neither Donald Trump nor a university.”[37] The case was being heard in U.S. District Court for the Southern District of California in San Diego, No. 3:2013cv02519,[39] by Judge Gonzalo P. Curiel.[38] It was scheduled for argument beginning November 28, 2016.[40] However, just 20 days before that date and shortly after Trump won the presidential election, this case and two others were settled for a total of $25 million and without any admission of wrongdoing by Trump.[41][42]

International equivalents to RICO

The US RICO legislation has other equivalents in the rest of the world. In spite of Interpol having a standardized definition of RICO-like crimes, the interpretation and national implementation in legislation (and enforcement) widely varies. Most nations cooperate with the US on RICO enforcement only where their own related laws are specifically broken, but this is in line with the Interpol protocols for such matters.

By nation, alphabetically

Without other nations enforcing similar legislation to RICO many cross border RICO cases would not be possible. In the overall body of RICO cases that went to trial, at least 50% have had some non-US enforcement component to them. The offshoring of money away from the US finance system as part racketeering (and especially money laundering) is typically a major contributing factor to this.

However, other countries have laws that enable the government to seize property with unlawful origins. Mexico and Colombia both have specific laws that define the participation in criminal organizations as a separate crime,[45] and separate laws that allow the seizure of goods related with these crimes.[46] This latter provides a specific chapter titled “International Cooperation”, which instructs Mexican authorities to cooperate with foreign authorities with respect to organized crime assets within Mexico, and provides the framework by which Mexican authorities may politely request the cooperation of foreign authorities with respect to assets located outside of Mexico, in terms of any international instruments they may be party to.

Arguably, this may be construed as allowing the application of the RICO Act in Mexico, provided the relevant international agreements exist among Mexico and countries with RICO or RICO-equivalent provisions.

See also

References

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The Pronk Pops Show 896, May 18, 2017, Story 1: A Broadcasting Legend, Roger Ailes, Dies at Age 77, Rest in Peace — Videos — Story 2: President Trump Tweets: “The is The Single Greatest Witch Hunt of A Politician in American History” — Special Counsel: Bad Idea — Robert Mueller: Good Choice — Videos

Posted on May 18, 2017. Filed under: American History, Barack H. Obama, Benghazi, Bill Clinton, Blogroll, Breaking News, Budgetary Policy, Congress, Countries, Donald J. Trump, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Education, Employment, Fast and Furious, Federal Bureau of Investigation (FBI), Federal Government, Fiscal Policy, Foreign Policy, Former President Barack Obama, Fourth Amendment, Freedom of Speech, Government, Government Spending, Hate Speech, Hillary Clinton, Hillary Clinton, Hillary Clinton, Hillary Clinton, Hillary Clinton, History, House of Representatives, Illegal Immigration, Iran Nuclear Weapons Deal, IRS, Law, Media, News, Obama, People, Philosophy, Photos, Politics, President Trump, Presidential Appointments, Raymond Thomas Pronk, Regulation, Robert S. Mueller III, Scandals, Second Amendment, Security, Senate, Senator Jeff Sessions, Spying, Success, Surveillance and Spying On American People, Surveillance/Spying, Tax Policy, Technology, Terror, Terrorism, Trump Surveillance/Spying, Unemployment, United States Constitution, United States of America, United States Supreme Court, Videos, Wealth, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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The Pronk Pops Show Podcasts

Pronk Pops Show 896,  May 18, 2017

Pronk Pops Show 895,  May 17, 2017

Pronk Pops Show 894,  May 16, 2017

Pronk Pops Show 893,  May 15, 2017

Pronk Pops Show 892,  May 12, 2017

Pronk Pops Show 891,  May 11, 2017

Pronk Pops Show 890,  May 10, 2017

Pronk Pops Show 889,  May 9, 2017

Pronk Pops Show 888,  May 8, 2017

Pronk Pops Show 887,  May 5, 2017

Pronk Pops Show 886,  May 4, 2017

Pronk Pops Show 885,  May 3, 2017

Pronk Pops Show 884,  May 1, 2017

Pronk Pops Show 883 April 28, 2017

Pronk Pops Show 882: April 27, 2017

Pronk Pops Show 881: April 26, 2017

Pronk Pops Show 880: April 25, 2017

Pronk Pops Show 879: April 24, 2017

Pronk Pops Show 878: April 21, 2017

Pronk Pops Show 877: April 20, 2017

Pronk Pops Show 876: April 19, 2017

Pronk Pops Show 875: April 18, 2017

Pronk Pops Show 874: April 17, 2017

Pronk Pops Show 873: April 13, 2017

Pronk Pops Show 872: April 12, 2017

Pronk Pops Show 871: April 11, 2017

Pronk Pops Show 870: April 10, 2017

Pronk Pops Show 869: April 7, 2017

Pronk Pops Show 868: April 6, 2017

Pronk Pops Show 867: April 5, 2017

Pronk Pops Show 866: April 3, 2017

Pronk Pops Show 865: March 31, 2017

Pronk Pops Show 864: March 30, 2017

Pronk Pops Show 863: March 29, 2017

Pronk Pops Show 862: March 28, 2017

Pronk Pops Show 861: March 27, 2017

Pronk Pops Show 860: March 24, 2017

Pronk Pops Show 859: March 23, 2017

Pronk Pops Show 858: March 22, 2017

Pronk Pops Show 857: March 21, 2017

Pronk Pops Show 856: March 20, 2017

Pronk Pops Show 855: March 10, 2017

Pronk Pops Show 854: March 9, 2017

Pronk Pops Show 853: March 8, 2017

Pronk Pops Show 852: March 6, 2017

Pronk Pops Show 851: March 3, 2017

Pronk Pops Show 850: March 2, 2017

Pronk Pops Show 849: March 1, 2017

Pronk Pops Show 848: February 28, 2017

Pronk Pops Show 847: February 27, 2017

Pronk Pops Show 846: February 24, 2017

Pronk Pops Show 845: February 23, 2017

Pronk Pops Show 844: February 22, 2017

Pronk Pops Show 843: February 21, 2017

Pronk Pops Show 842: February 20, 2017

Pronk Pops Show 841: February 17, 2017

Pronk Pops Show 840: February 16, 2017

Pronk Pops Show 839: February 15, 2017

Pronk Pops Show 838: February 14, 2017

Pronk Pops Show 837: February 13, 2017

Pronk Pops Show 836: February 10, 2017

Pronk Pops Show 835: February 9, 2017

Pronk Pops Show 834: February 8, 2017

Pronk Pops Show 833: February 7, 2017

Pronk Pops Show 832: February 6, 2017

Pronk Pops Show 831: February 3, 2017

Pronk Pops Show 830: February 2, 2017

Pronk Pops Show 829: February 1, 2017

Image result for roger ailes dead at 77Image result for roger ailes and familyImage result for cartoons branco trump witch huntImage result for trump russian investigation a witch hunt

Story 1: A Broadcasting Legend, Roger Ailes, Dies at Age 77, Rest in Peace — Videos

Image result for roger ailes and familyImage result for roger ailes and family

Rupert Murdoch statement on Roger Ailes’ passing

Brit Hume on the life and legacy of Roger Ailes

Sean Hannity: I am forever grateful for Roger Ailes

Martha MacCallum remembers Roger Ailes

Rush Limbaugh Remembers Roger Ailes: “Roger And I Were Passengers In History”

Neil Cavuto remembers Roger Ailes

Gutfeld remembers Roger Ailes

The Sean Hannity Show May 18, 2017 || Remembering Roger Ailes

Laura Ingraham Show 5/18/17 – (FULL) Roger Ailes Built Success By Out Thinking His Competitors

Mark Levin Show: Tribute to Roger Ailes (audio from 05-18-2017)

Glenn & Bill React To Roger Aile’s Death | Bill O’Reilly’s First Interview Since Fox News Exit

Bill O’Reilly No Spin News: Paying Respects To Roger Ailes(RIP) & Hysterical Press (5/18/2017)

Rachel Maddow On The Passing Of Roger Ailes: ‘I Considered Him To Be A Friend’

Kimberly Guilfoyle pays tribute to Roger Ailes

Shepard Smith pays tribute to Roger Ailes

Roger Ailes, Who Built Fox News Into an Empire, Dies at 77

Former Fox News chairman and CEO Roger Ailes dead at 77

Remembering Roger Ailes

World reacts to the death of Roger Ailes

Former Fox News CEO Roger Ailes dead at 77

Roger Ailes leaves behind complicated legacy

Lionel Nation YouTube Live Stream: Roger Ailes Eulogium, Mueller the DNC Nightmare & Comey the Clown

Fox News anchors learned of the death of former chairman and CEO Roger Ailes from Drudge

  • Fox News anchors learned of death of former chairman and CEO from Drudge
  • Fox published a breaking news segment on Twitter following Roger Ailes’ death
  • Steve Doocy said: ‘They have published, Drudge has, a statement from his wife’
  • Ainsley Earhardt added: ‘Beth you are in our thoughts and our prayers, and so is Zachary, their beautiful son. Roger, rest in peace.’
  • Ailes died aged 77, according to his wife, who released statement to Matt Drudge
Roger Ailes has died at the age of 77, his wife Elizabeth revealed in a statement on Thursday

Roger Ailes has died at the age of 77, his wife Elizabeth revealed in a statement on Thursday

Fox News anchors only learned of the death of its former chairman and CEO from Drudge Report.

Roger Ailes died aged 77, according to his wife Elizabeth, who released a statement to Matt Drudge.

In a breaking news segment tweeted by the network on Thursday morning, Fox & Friends’ Steve Doocy reported: ‘Roger Ailes, one of the founders of the Fox News channel has died.

‘They have published, Drudge has, a statement from his wife Elizabeth.’

The statement was then read out before Ainsley Earhardt added: ‘Beth you are in our thoughts and our prayers, and so is Zachary, their beautiful son. Roger, rest in peace.’

His death comes less than a year after he resigned from the company over allegations of sexual harassment.

His wife Elizabeth, with whom he has one son, said: ‘I am profoundly sad and heartbroken to report that my husband, Roger Ailes, passed away this morning. Roger was a loving husband to me, to his son Zachary, and a loyal friend to many.

‘He was also a patriot, profoundly grateful to live in a country that gave him so much opportunity to work hard, to rise — and to give back.

‘During a career that stretched over more than five decades, his work in entertainment, in politics, and in news affected the lives of many millions.

‘And so even as we mourn his death, we celebrate his life,’ the statement reads.

Steve Doocy (left) reported: ‘Roger Ailes, one of the founders of the Fox News channel has died'

Steve Doocy (left) reported: ‘Roger Ailes, one of the founders of the Fox News channel has died’

There was no further information on the cause of Ailes’ death. He celebrated his 77th birthday on Monday.

Ailes had struggled with his health. He had hemophilia, multiple surgeries to replace his joints and a secret prostate surgery a few years ago that put him on an extended leave from the network, according to New York magazine reporter Gabriel Sherman.

Last year, Sherman reported that Ailes was still having trouble walking and rarely left his executive suite.

A friend who ran into Ailes in Palm Beach over the 2015-2016 holidays told the magazine that he was using a walker at the time.

In an excerpt from the 2013 biography Roger Ailes Off Camera, Ailes said he knew he didn’t have long left to live.

‘My doctor told me that I’m old, fat, and ugly, but none of those things is going to kill me immediately,’ he told the author, Zev Chafets, shortly before his 72nd birthday. ‘The actuaries say I have six to eight years. The best tables give me 10. Three thousand days, more or less.’

He added: ‘I’d give anything for another 10 years.’

http://www.dailymail.co.uk/news/article-4518872/Fox-News-learned-Roger-Ailes-death-Drudge.html#ixzz4hSwIC0Lw

Michael Wolff on Roger Ailes’ Final Days and a Complicated Murdoch Relationship

Matt Furman
Roger Ailes in his Fox News office in 2014.

The Fox News exec understood the intensity of the unhappiness and anger in another America that liberal media people are only now waking up to with Donald Trump.

I made a mental note last night to call Roger in the morning and get his take on the Trump events of the last few days. There are few conversations more entertaining and insightful than Roger Ailes on Republican politics, where he’s known all the players, their strengths and particularly their weaknesses. While the bet noir to liberals, his most scathing and often hilarious critiques have often been reserved for conservatives. His 50 years among the kahunas of GOP politics — as one of the creators of modern Republican politics — made him, among his other political claims to fame, among his party’s sharpest observers. On his friend Donald Trump, no one has been keener. But at 8:30 this morning, his wife Beth texted me that he had died a few minutes ago at age 77.

It was a particular cruelty of the anti-Ailes press that it often focused on Beth, with rumors of a breakdown in their marriage and impending divorce. In fact, she was fierce in her devotion to him, and his most implacable defender. In the 10 months since he had been forced out as chairman of Fox News Channel, the network —arguably, the most significant political force in American life for a generation — that he launched, built and ran for 20 years, she carried him. This past autumn, after their hard summer of accusations and media conviction, she had flown down to Palm Beach and bought for themselves a waterfront mansion, where she hoped he would retire and where living well would at least be some revenge.

Retirement was more Beth’s idea than his. Roger and I spoke a week ago, just after the last ouster at Fox — Bill Shine, his lieutenant who had taken over his job, following by a week the ouster of Bill O’Reilly — and, invariably, the subject was Fox’s quickly eroding fortunes and the possibilities for a new conservative network. Roger, yet proscribed by the non-compete provisions of his separation agreement, nevertheless had a plan in his head, and was taking calls. “I can’t call. But I can’t stop people from calling me,” he said. As we spoke, Beth texted pictures of their view and of a newly svelte Roger lying lazily in the sun.

All things considered, it was a happy winter. Or, anyway, he was certainly weighing the benefits of being out of the office and out of the fray. Still, clearly, both he and Beth could only get so far from the bitterness they felt about his end at Fox. Worse still, the terms of his departure from Fox put draconian limits on what he could say and how he might defend himself. The payout that he believed he had earned — having created a $30 billion asset and 21st Century Fox’s most profitable business — was the price of his silence. The most voluble and pugnacious man in American media was forced to keep still.

But privately, angrily, he couldn’t wait to settle scores.

In his view, the political showdown that was always bound to happen — which, to me, he had predicted several years before — had finally happened, albeit uglier, and with more finality, than he had ever expected. “They got the memo,” he said, with some forbearance. “If you strike the king, you better kill him.”

James Murdoch

Michael Wolff: It’s James Murdoch’s Fox News Now

By “they,” he meant Rupert Murdoch’s sons. And most particularly James Murdoch, who, two years ago, was elevated to CEO of his father’s company, who Ailes regarded as an impetuous, grandiose, self-satisfied rich kid. Wryly, he admitted bringing this feud on himself. “I made the money those kids spent. So, no, I wasn’t going to suck up to them.”

Indeed, not long before his ouster, Ailes had enraged James by going around his back and helping to convince his father to squelch a plan for a new, temple-like 21st Century Fox headquarters that James wanted to build.

The relationship of Ailes to Murdoch senior, often his loyal patron but frequently just a boss stuck having to indulge his highest earner, was also always a fraught one. When I wrote my Murdoch biography in 2009, one of the few stipulations of my access to Murdoch was that I not interview Ailes, who, I gathered, Rupert felt got too much credit for the company’s success.

In July, over a two week period of press leaks after former Fox anchor Gretchen Carlson filed a sexual harassment lawsuit, Ailes was ousted without opportunity to defend himself. Even when James hired the law firm Paul, Weiss, to investigate the charges against Ailes, Ailes himself wasn’t called. In effect, in order to get his payout, he had to accept his disgrace — and it was enough money that he agreed to what he surely considered a devil’s bargain.

It is, of course, impossible to know what might be true or not. And now it can never entirely be known. Surely, his political enemies, the legions of them, were concerned much less for the truth than that he be gone. As surely, less is true than what the various lawsuits allege, because that is the nature of lawsuits. All of us who know what Roger reflexively talks like, irascibly, caustically and with retrograde vividness, give him, at least privately, the benefit of the doubt.

In the end, the larger story is about someone who, from Nixon’s “silent majority” to Reagan’s “Reagan Democrats” to Fox News, understood the intensity of the unhappiness and anger in another America that we liberal media people are only now waking up to with Donald Trump.

More personally, when you’re in the media business, what you look for is someone who is at the top of his craft, who understands the real score, who knows how to gossip and who has stories to tell. If you missed knowing Roger, you missed out.

http://www.hollywoodreporter.com/news/michael-wolff-roger-ailes-final-days-a-complicated-murdoch-relationship-1005194

Image result for cartoons department of justice special couselor

Image result for trump tweet with all the illegal acts

Image result for cartoons branco trump witch hunt

Image result for cartoons branco trump witch hunt

 

Image result for cartoons branco hillary clinton public corruption

Image result for cartoons branco hillary clinton public corruption

Image result for cartoons branco hillary clinton public corruptionImage result for cartoons branco hillary clinton public corruption

Robert Meuller Named Special Prosecutor in Trump-Russia Probe. Tucker and Jason Chaffetz Weigh In.

Trump Blasts Russia Investigation as a ‘Witch Hunt’ on Twitter

Explaining Robert Mueller’s New Role as Special Counsel

While Most Sing Mueller’s Praises, Louie Gohmert Says He’s a Big Problem!

Bill Bennett talks pros and cons of Russia special counsel

Ingraham: Left has been trying to impeach since Election Day

What does special counsel mean for the Russia probe?

As special counsel, Mueller to have significant power in Russia probe

Brit Hume: Mueller is the grownup needed for Russia probe

Remarks from Robert Mueller III

Ding Dong The Witch Is Dead

Ding Dong! The Witch Is Dead lyrics

Play “Ding Dong! The Witc…”
on Amazon Music
Munchkins
Ding Dong! The Witch is dead. Which old Witch? The Wicked Witch!
Ding Dong! The Wicked Witch is dead.
Wake up – sleepy head, rub your eyes, get out of bed.
Wake up, the Wicked Witch is dead. She’s gone where the goblins go,
Below – below – below. Yo-ho, let’s open up and sing and ring the bells out.
Ding Dong’ the merry-oh, sing it high, sing it low.
Let them know
The Wicked Witch is dead!
Mayor
As Mayor of the Munchkin City, In the County of the Land of Oz, I welcome you most regally.
Barrister
But we’ve got to verify it legally, to see
Mayor
To see?
Barrister
If she
Mayor
If she?
Barrister
Is morally, ethic’lly
Father No.1
Spiritually, physically
Father No. 2
Positively, absolutely
Munchkins
Undeniably and reliably Dead
Coroner
As Coroner I must aver, I thoroughly examined her.
And she’s not only merely dead, she’s really most sincerely dead.
Mayor
Then this is a day of Independence For all the Munchkins and their descendants
Barrister
If any.
Mayor
Yes, let the joyous news be spread The wicked Old Witch at last is dead!

A Special Enemy

Former FBI Director Robert Mueller was born and bred to torment Donald Trump.

Donald Trump went to sleep Wednesday night with a new enemy outside his window: former FBI Director Robert S. Mueller III.

LEON NEYFAKH

Leon Neyfakh is a Slate staff writer.

Mueller, a 72-year-old former prosecutor who left the FBI in 2013, has been called upon by the Justice Department to serve as a special counsel to investigate Trump and his associates. In accordance with an order issued Wednesday by the deputy attorney general, it will be up to Mueller—whose last name is pronounced Muh-lur—to decide whether anyone involved in the Trump campaign should be charged with a crime. “I accept this responsibility and will discharge it to the best of my ability,” Mueller said in a statement Wednesday.

Even if Mueller’s investigation doesn’t result in any charges being brought, it’s almost certain Mueller and his team will end up asking Trump questions he doesn’t want to answer and demanding to see documents he doesn’t want to provide. Barring a drastic change in Trump’s disposition, the president will respond to these affronts by publishing angry tweets about Mueller and snarling about him in interviews. Maybe he’ll even compare him to a “dog,” as he did recently when talking about former Acting Attorney General Sally Yates. Or perhaps he could threaten Mueller, as he did last week in a tweet directed at former FBI Director James Comey.

While Trump loathes a lot of people, his hatred of Mueller is likely to be particularly intense. That’s because Mueller is exactly the kind of guy Trump always hates. He’s also exactly the kind of law enforcement official Trump doesn’t understand.

Raised in a wealthy suburb of Philadelphia, Mueller has Roman numerals in his name and attended a New Hampshire boarding school alongside John Kerry. Later, he followed in his father’s footsteps to Princeton, where he played lacrosse, and received a master’s from New York University and a J.D. from the University of Virginia School of Law. According to NPR, former CIA Director George Tenet described Mueller in 2013 as a “high Protestant with a locked jaw [and a] blue blazer, khaki pants, penny loafers, maybe a little Vitalis and Old Spice to boot.”

Mueller was an oddity at the FBI, said Tim Weiner, author of Enemies: A History of the FBI. “There are not a lot of people named Robert Swan Mueller III in the directory of the FBI,” he told me. “Bobby is very patrician. He’s very well-bred.”

It helped that Mueller was also a Marine who fought in Vietnam, having served as the leader of a rifle platoon and been awarded the Bronze Star and the Purple Heart. Journalists who’ve profiled him invariably note that Mueller’s time in the Marines shaped him profoundly and informed his demanding leadership style. When David Margolis showed up to his first day of work as Mueller’s deputy at the FBI, on the Monday after George W. Bush’s inauguration in 2001, he discovered an unsigned note on his desk that was unmistakably from Mueller: “It’s 0700. Where are you?”

Sworn in exactly one week before 9/11, Mueller found himself in charge of fixing a broken FBI that had failed to make sense of crucial clues before the attacks. Writing in Time in 2011, Barton Gellman described the state of the bureau before Mueller’s arrival: “The labor force—heavily white and male, with a blue collar culture that prized physical courage over book smarts lacked the language and technical skills to adapt.” Gellman explained that in the aftermath of 9/11, questions arose as to whether the FBI “was irreparably broken, ill equipped to collect intelligence and disinclined to share it anyway.”

Over the course of 12 years, Mueller worked to transform the agency into an organization that could both hold people responsible for past crimes and suss out malfeasance that hadn’t yet been committed—terrorist plots in particular. Mueller, Gellman wrote, “remade the bureau in his image,” as “[o]utsiders displaced agents with badges and guns as assistant directors in charge of finance, human resources, information technology and the directorate of weapons of mass destruction.” In his office, according to a Washingtonian piece by Garrett Graff, Mueller kept shelves lined with “counterterrorism books, manuals on IT and computers, and business books on such topics as ‘change management’ by corporate thinkers like Jack Welch.” Only a “tiny section,” Graff wrote, was “devoted to crime.”

Mueller, who is not an imposing street soldier who wears a cool uniform, doesn’t fit Trump’s image of a law enforcement official. As evidenced by the fact that villainous Milwaukee Sheriff David Clarke appears to have landed a job in the Department of Homeland Security, Trump prefers guys who are cartoonishly “tough on crime.” He also tends to focus his political attention on rank-and-file members of police unions, presenting himself as a friend to regular cops while ignoring the senior “brass” who tell them what to do.  Trump has refused to even acknowledge the memo he was sent in February in which a raft of high-profile police chiefs—including Bill Bratton from the NYPD and David Brown, who was head of the Dallas Police Department at the time of the deadly sniper attack that killed five officers—urged him to reconsider his preferred crime-reduction strategy of putting as many people as possible in prison for as long as the law allows.

It’s possible, though unlikely, that under different circumstances Trump would be impressed by a fancy, smart guy like Mueller and would try to impress him back. But there’s one more thing about Mueller that’s going to make it impossible for Trump to show him any respect: The former FBI director is practically blood brothers with James Comey.

The bond between the two men was forged in early 2004—years before Comey succeeded Mueller as FBI director. Comey, who was then serving as the deputy attorney general under John Ashcroft, was locked in a high-stakes dispute with George W. Bush, who wanted to overrule the Justice Department’s conclusion that an NSA domestic surveillance program was illegal. As Graff tells it in his Washingtonian piece, Ashcroft was in a hospital room recovering from surgery when he was ambushed by a pair of White House aides. Here’s Graff:

Comey was driving home on Constitution Avenue with his security escort of U.S. marshals the night of Tuesday, March 10, 2004, when he got a call. … White House chief of staff Andy Card and White House counsel [Alberto] Gonzales were on their way to see Ashcroft in the hospital.

Comey told his driver to turn on the emergency lights and head to the hospital. Then he began calling other Justice officials to rally them at George Washington University Hospital.

Mueller was at dinner with his wife and daughter when he got the call from Comey at 7:20 pm. “I’ll be right there,” he said.

In 2007, Comey testified before the Senate Judiciary Committee that he believed Card and Gonzales intended to use Ashcroft’s semiconscious state to get the attorney general to sign off on the surveillance program he had previously opposed. By intercepting them in Ashcroft’s hospital room, Comey and Mueller may have prevented the Bush administration officials from getting the attorney general’s signature. (Comey said in his testimony that Ashcroft made the ultimate decision to rebuff Card and Gonzales.) They also helped put the White House and the Justice Department on course for an epic confrontation. Not long after the incident at the hospital, Mueller told Bush he would resign if the surveillance program continued. Bush, realizing he faced a situation on par with Nixon’s “Saturday Night Massacre,” backed down. Afterward, Graff wrote, Mueller and Comey “shared a dark laugh” before going back to work.

“I think that experience, of having to stand together and say, ‘No, Mr. President, you can’t do this,’ really mind-melded them,” said Weiner. “It was a moment of brotherhood.”

At this point, no friend of Jim Comey is ever going to be a friend of Donald Trump, especially when he’s leading the same investigation that Comey led before his ouster. Odds are good, in fact, that Trump will use Mueller’s closeness with Comey to accuse him of bias and question the legitimacy of his inquiry.

If and when Trump does go after Mueller—he dipped his toe in the water Thursday morning by tweeting about how it was unfair that a special counsel had been appointed to conduct the “witch hunt” against him—their showdown will be marked by a pleasing irony. In one corner will be the patrician and brainy Mueller, who has little in common with the “real cops” the president so admires. In the other will be Trump, who will soon find out what being ”tough on crime” really means. …

THE SCOPE OF THE SPECIAL COUNSEL APPOINTMENT IS TOTALLY INADEQUATE

Rod Rosenstein just appointed former FBI Director (and, before that, US Attorney) Robert Mueller as Special Counsel to take over the investigation into Trump and his associates.

I’m agnostic about the selection of Mueller. He has the benefit of credibility among FBI Agents, so will be able to make up for some of what was lost with Jim Comey’s firing. He will be regarded by those who care about such things as non-partisan. With Jim Comey, Mueller stood up to Dick Cheney on Stellar Wind in 2004 (though I think in reality his willingness to withstand Cheney’s demands has been overstated).

But Mueller has helped cover up certain things in the past, most notably with the Amerithrax investigation.

My bigger concern is with the scope, which I believe to be totally inadequate.

Here’s how the order describes the scope:

(b) The Special Counsel is authorized to conduct the investigation confirmed by then-FBI Director James 8. Comey in testimony before the House Permanent Select Committee on Intelligence on March 20, 2017, including:

(i) any links and/or coordination between the Russian government and individuals associated with the campaign of President Donald Trump; and

(ii) any matters that arose or may arise directly from the investigation; and

(iii) any other matters within the scope of 28 C.F.R. § 600.4(a).

As I read this, it covers just the investigation into ties between the Russian government and people associated with Trump’s campaign. Presumably, that includes Mike Flynn, Paul Manafort, and Carter Page, among others.

But there are other aspects of the great swamp that is the Trump and Russia orbit that might not be included here. For example, would Manafort’s corrupt deals with Ukrainian oligarchs be included? Would Flynn’s discussions with Turkish officials, or Rudy Giuliani’s attempt to excuse Turkey’s violation of Iran sanctions? Would the garden variety money laundering on behalf of non-governmental Russian mobbed up businessmen be included, something that might affect Manafort, Jared Kushner, or Trump himself?

And remember there are at least two other aspects of the Russian hacking investigation. Back in February, Reuters reported that San Francisco’s office was investigating Guccifer 2.0 and Pittsburgh was investigating the actual hackers.  Somewhere (San Francisco would be the most logical spot), they’re presumably investigating whoever it is that has been dumping NSA’s hacking tools everywhere. I’ve learned that that geography has either changed, or there are other aspects tied to those issues in other corners of the country.

Plus, there’s the Wikileaks investigation in EDVA, the same district where the Mueller-led investigation might reside, but a distinct investigation.

Any one of those investigations might present strings that can be pulled, any one of which might lead to the unraveling of the central question: did Trump’s associates coordinate with the Russian government to become President. Unless Mueller can serve to protect those other corners of the investigation from Trump’s tampering, it would be easy to shut down any of them as they become productive.

Yet, as far as I understand the scope of this, Mueller will only oversee the central question, leaving those disparate ends susceptible to Trump’s tampering.

Update: In its statement on the appointment, ACLU raises concerns about whether this would include the investigation into Trump’s attempt to obstruct this investigation.

Update: WaPo’s Philip Rucker reminds that Mueller is law firm partners with Jamie Gorelick, who has been representing both Ivanka and Kushner in this issue.

Update: Mueller is quitting WilmberHale to take this gig. He’s also taking two WilmerHale former FBI people with him. Still, that’s a close tie to the lawyer of someone representing key subjects of this investigation.

Update: One addition to the ACLU concern about investigating the Comey firing. In the most directly relevant precedent, the Plame investigation, when Pat Fitzgerald expanded his investigation from the leak of Plame’s identity to the obstruction of the investigation, he asked for approval to do so from the Acting Attorney General overseeing the investigation — in that case, Jim Comey.

The Acting Attorney General in this case is Rod Rosenstein. So if Mueller were as diligent as Fitzgerald was, he would have to ask the guy who provided the fig leaf for Comey’s firing to approve the expansion of the investigation to cover his own fig leaf.

Update: Petey noted to me that Jeff Sessions’ narrow recusal may limit how broadly Rosenstein’s order may be drawn. It’s a really interesting observation. Here’s what I said about Sessions’ recusal (which is very similar to what I tried to address in this post).

There are two areas of concern regarding Trump’s ties that would not definitively be included in this recusal: Trump’s long-term ties to mobbed up businessmen with ties to Russia (a matter not known to be under investigation but which could raise concerns about compromise of Trump going forward), and discussions about policy that may involve quid pro quos (such as the unproven allegation, made in the Trump dossier, that Carter Page might take 19% in Rosneft in exchange for ending sanctions against Russia), that didn’t involve a pay-off in terms of the hacking. There are further allegations of Trump involvement in the hacking (a weak one against Paul Manafort and a much stronger one against Michael Cohen, both in the dossier), but that’s in no way the only concern raised about Trump’s ties with Russians.

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The Pronk Pops Show 894, May 16, 2017, Story 1: Trump Whipping The Washington Post — More Fake News From Big Lie Media — Open Source New al Qaeda and Islamic State Laptop Battery Bombs May Evade Airport Security — Videos — Story 2: The Real Danger To The Our Republic Is Progressive Propaganda About Trump — American People Are Ignoring Them As They Get Trump Media Fatigue — Videos

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Story 1: Trump Whipping The Washington Post — More Fake News From Big Lie Media — Israel Was The Primary Original Source — Open Source New al Qaeda and Islamic State Laptop Battery Bombs May Evade Airport Security — Videos — 

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Story 1: Trump Whipping The Washington Post — More Fake News From Big Lie Media — It didn’t happen. — Videos — 

UPDATED: Trump revealed highly classified material to Russian officials, Washington Post reports

MCMaster on Trump revealed secret classified information to the russians 5/15/2017

Former US Ambass To Russia On Trump Defends Giving Highly Classified Info To Russians | CNN

Israel was source of leaked terrorism intel Trump told Russians

Trump defends giving Russia highly classified intelligence

Panel on Sources: Trump Shared Classified Information with Russians. @thelauracoates #Breaking

National Security Adviser Denies Trump Gave Russians Secrets

Natl. Security Advisor McMaster PRESS BRIEFING on Trump’s Upcoming Trip, Classified Info to Russians

Published on May 16, 2017

Brought to you by Desert Diamond: http://ddcaz.com
President Donald Trump’s national security adviser plans to brief reporters at the White House. The White House says H.R. McMaster will hold an on-camera briefing before noon. He was originally scheduled to appear with press secretary Sean Spicer, but Spicer plans to hold a separate, off-camera session with reporters later in the day, after McMaster’s appearance. Reporters had been promised a briefing from McMaster about Trump’s first overseas trip, which opens Friday. But McMaster is likely to face questions about reports that Trump shared classified intelligence information with Russian officials when they met in the Oval Office last week. McMaster has denied the reports, telling reporters Monday after the story broke: “I was in the room. It didn’t happen.”

BREAKING: General McMaster Just Dropped BOMBSHELL Proves Trump Never Leaked To Russia

Is the intel community undermining the Trump presidency?

Deep State Leaks Highly Classified Info to Washington Post to Smear President Trump

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Published on Mar 31, 2017

US intelligence and law enforcement agencies believe that ISIS and other terrorist organizations have developed innovative ways to plant explosives in electronic devices that FBI testing shows can evade some commonly used airport security screening methods, CNN has learned

Intelligence officials received information on ISIS testing laptop bombs

Trump revealed highly classified information to Russian foreign minister and ambassador

May 15 at 7:45 PM

Trump revealed highly classified intel in Oval Office meeting with Russians
President Trump revealed highly classified intel in Oval Office meeting with Russians (Photo: Russian Foreign Ministry/The Washington Post)

President Trump revealed highly classified information to the Russian foreign minister and ambassador in a White House meeting last week, according to current and former U.S. officials, who said Trump’s disclosures jeopardized a critical source of intelligence on the Islamic State.

The information the president relayed had been provided by a U.S. partner through an intelligence-sharing arrangement considered so sensitive that details have been withheld from allies and tightly restricted even within the U.S. government, officials said.

The partner had not given the United States permission to share the material with Russia, and officials said Trump’s decision to do so endangers cooperation from an ally that has access to the inner workings of the Islamic State. After Trump’s meeting, senior White House officials took steps to contain the damage, placing calls to the CIA and the National Security Agency.

“This is code-word information,” said a U.S. official familiar with the matter, using terminology that refers to one of the highest classification levels used by American spy agencies. Trump “revealed more information to the Russian ambassador than we have shared with our own allies.

 
Washington reacts to Trump’s disclosure of classified information
The White House and lawmakers reacted May 15 to Washington Post revelations that President Trump disclosed classified information during a meeting with Russian officials.

The revelation comes as the president faces rising legal and political pressure on multiple Russia-related fronts. Last week, he fired FBI Director James B. Comey in the midst of a bureau investigation into possible links between the Trump campaign and Moscow. Trump’s subsequent admission that his decision was driven by “this Russia thing” was seen by critics as attempted obstruction of justice.

One day after dismissing Comey, Trump welcomed Russian Foreign Minister Sergei Lavrov and Ambassador Sergey Kislyak — a key figure in earlier Russia controversies — into the Oval Office. It was during that meeting, officials said, that Trump went off script and began describing details of an Islamic State terrorist threat related to the use of laptop computers on aircraft.

For almost anyone in government, discussing such matters with an adversary would be illegal. As president, Trump has broad authority to declassify government secrets, making it unlikely that his disclosures broke the law.

White House officials involved in the meeting said Trump discussed only shared concerns about terrorism.

“The president and the foreign minister reviewed common threats from terrorist organizations to include threats to aviation,” said H.R. McMaster, the national security adviser, who participated in the meeting. “At no time were any intelligence sources or methods discussed, and no military operations were disclosed that were not already known publicly.”

McMaster reiterated his statement in a subsequent appearance at the White House on Monday and described the Washington Post story as “false,” but did not take any questions.

McMaster: Trump ‘did not disclose any military operations that were not already publicly known’
National Security Advisor H.R. McMaster denied recent reporting that President Trump revealed classified information in a meeting with Russian officials. (Reuters)

In their statements, White House officials emphasized that Trump had not discussed specific intelligence sources and methods, rather than addressing whether he had disclosed information drawn from sensitive sources.

The CIA declined to comment, and the NSA did not respond to requests for comment.

But officials expressed concern about Trump’s handling of sensitive information as well as his grasp of the potential consequences. Exposure of an intelligence stream that has provided critical insight into the Islamic State, they said, could hinder the United States’ and its allies’ ability to detect future threats.

“It is all kind of shocking,” said a former senior U.S. official who is close to current administration officials. “Trump seems to be very reckless and doesn’t grasp the gravity of the things he’s dealing with, especially when it comes to intelligence and national security. And it’s all clouded because of this problem he has with Russia.”

In his meeting with Lavrov, Trump seemed to be boasting about his inside knowledge of the looming threat. “I get great intel. I have people brief me on great intel every day,” the president said, according to an official with knowledge of the exchange.

Trump went on to discuss aspects of the threat that the United States learned only through the espionage capabilities of a key partner. He did not reveal the specific intelligence-gathering method, but he described how the Islamic State was pursuing elements of a specific plot and how much harm such an attack could cause under varying circumstances. Most alarmingly, officials said, Trump revealed the city in the Islamic State’s territory where the U.S. intelligence partner detected the threat.

What Trump’s classified revelations to Russian officials mean for allies
Washington Post national security reporter Greg Miller explains what President Trump’s potential disclosures to Russian officials means going forward. (The Washington Post)

The Post is withholding most plot details, including the name of the city, at the urging of officials who warned that revealing them would jeopardize important intelligence capabilities.

“Everyone knows this stream is very sensitive, and the idea of sharing it at this level of granularity with the Russians is troubling,” said a former senior U.S. counterterrorism official who also worked closely with members of the Trump national security team. He and others spoke on the condition of anonymity, citing the sensitivity of the subject.

The identification of the location was seen as particularly problematic, officials said, because Russia could use that detail to help identify the U.S. ally or intelligence capability involved. Officials said the capability could be useful for other purposes, possibly providing intelligence on Russia’s presence in Syria. Moscow would be keenly interested in identifying that source and perhaps disrupting it.

“Russia could identify our sources or techniques,” the senior U.S. official said.

A former intelligence official who handled high-level intelligence on Russia said that given the clues Trump provided, “I don’t think that it would be that hard [for Russian spy services] to figure this out.”

At a more fundamental level, the information wasn’t the United States’ to provide to others. Under the rules of espionage, governments — and even individual agencies — are given significant control over whether and how the information they gather is disseminated, even after it has been shared. Violating that practice undercuts trust considered essential to sharing secrets.

The officials declined to identify the ally but said it has previously voiced frustration with Washington’s inability to safeguard sensitive information related to Iraq and Syria.

“If that partner learned we’d given this to Russia without their knowledge or asking first, that is a blow to that relationship,” the U.S. official said.

Trump also described measures the United States has taken or is contemplating to counter the threat, including military operations in Iraq and Syria, as well as other steps to tighten security, officials said.

The officials would not discuss details of those measures, but the Department of Homeland Security recently disclosed that it is considering banning laptops and other large electronic devices from carry-on bags on flights between Europe and the United States. The United States and Britain imposed a similar ban in March affecting travelers passing through airports in 10 Muslim-majority countries.

Trump cast the countermeasures in wistful terms. “Can you believe the world we live in today?” he said, according to one official. “Isn’t it crazy?”

Lavrov and Kislyak were also accompanied by aides.

A Russian photographer took photos of part of the session that were released by the Russian state-owned Tass news agency. No U.S. news organization was allowed to attend any part of the meeting.

Senior White House officials appeared to recognize quickly that Trump had overstepped and moved to contain the potential fallout. Thomas P. Bossert, assistant to the president for homeland security and counterterrorism, placed calls to the directors of the CIA and the NSA, the services most directly involved in the intelligence-sharing arrangement with the partner.

One of Bossert’s subordinates also called for the problematic portion of Trump’s discussion to be stricken from internal memos and for the full transcript to be limited to a small circle of recipients, efforts to prevent sensitive details from being disseminated further or leaked.

White House officials defended Trump. “This story is false,” said Dina Powell, deputy national security adviser for strategy. “The president only discussed the common threats that both countries faced.”

But officials could not explain why staff members nevertheless felt it necessary to alert the CIA and the NSA.

Sen. Bob Corker (R-Tenn.) said he would rather comment on the revelations in the Post story after “I know a little bit more about it,” but added: “Obviously, they are in a downward spiral right now and have got to figure out a way to come to grips with all that’s happening. And the shame of it is, there’s a really good national security team in place.”

Corker also said, “The chaos that is being created by the lack of discipline is creating an environment that I think makes — it creates a worrisome environment.”

Trump has repeatedly gone off-script in his dealings with high-ranking foreign officials, most notably in his contentious introductory conversation with the Australian prime minister earlier this year. He has also faced criticism for seemingly lax attention to security at his Florida retreat, Mar-a-Lago, where he appeared to field preliminary reports of a North Korea missile launch in full view of casual diners.

U.S. officials said that the National Security Council continues to prepare multi-page briefings for Trump to guide him through conversations with foreign leaders, but that he has insisted that the guidance be distilled to a single page of bullet points — and often ignores those.

“He seems to get in the room or on the phone and just goes with it, and that has big downsides,” the second former official said. “Does he understand what’s classified and what’s not? That’s what worries me.”

Lavrov’s reaction to the Trump disclosures was muted, officials said, calling for the United States to work more closely with Moscow on fighting terrorism.

Kislyak has figured prominently in damaging stories about the Trump administration’s ties to Russia. Trump’s first national security adviser, Michael Flynn, was forced to resign just 24 days into the job over his contacts with Kislyak and his misleading statements about them. Attorney General Jeff Sessions was forced to recuse himself from matters related to the FBI’s Russia investigation after it was revealed that he had met and spoke with Kislyak, despite denying any contact with Russian officials during his confirmation hearing.

The White House readout of the meeting with Lavrov and Kislyak made no mention of the discussion of a terrorist threat.

“Trump emphasized the need to work together to end the conflict in Syria,” the summary said. The president also “raised Ukraine” and “emphasized his desire to build a better relationship between the United States and Russia.”

Julie Tate and Ellen Nakashima contributed to this report.

https://www.washingtonpost.com/world/national-security/trump-revealed-highly-classified-information-to-russian-foreign-minister-and-ambassador/2017/05/15/530c172a-3960-11e7-9e48-c4f199710b69_story.html?utm_term=.7825502d7181

To the Washington Post, the New York Times and other left-wing outlets, journalism is blood sport.

It’s not about a mission to deliver facts, but to fulfill an agenda.

That couldn’t be clearer this week when Washington Post “Fact Checker” columnist Glenn Kessler tweeted on Monday that there was “applause in the newsroom as the Russia-leak scoop breaks the Hollywood Access record for most readers per minute.”

Applause in the newsroom as the Russia-leak scoop breaks the Hollywood Access record for most readers per minute

It’s not the first time the mask slipped and reporters applauded in the newsroom.

On Tuesday morning, Matt Drudge tweeted a link to a Politico story from 2009 which contained a pool report about President-Elect Barack Obama’s visit to the newsroom.

After three and a half  hours at his transition office, PEOTUS obama took another 6 minute ride through washington, arriving at 157 pm at the nondescript soviet-style building at 15th and L street that houses the washington post.

Around 100 people–Post reporters perhaps?–awaited PEOTUS’s arrival, cheering and bobbing their coffee cups.

Pool is holding in a van outside, while Mr obama does his washington post interview, and will exercise enormous restraint by ending report before saying what really thinks about this turn of events.

After the Post’s story broke, the president’s National Security Advisor denied the allegations:

“The president and the foreign minister reviewed common threats from terrorist organizations to include threats to aviation,” said H.R. McMaster, the national security adviser, who participated in the meeting. “At no time were any intelligence sources or methods discussed, and no military operations were disclosed that were not already known publicly.”

McMaster reiterated his statement in a subsequent appearance at the White House on Monday and described the Washington Post story as “false,” but did not take any questions.

http://www.theamericanmirror.com/washpost-reporters-cheer-trump-russia-leak-story-just-like-obama-09-visit/

Donald Trump said Amazon and Jeff Bezos have a ‘huge antitrust problem.’ Now they may.

The president-elect is certainly one to hold grudges.

https://www.recode.net/2016/11/9/13573926/donald-trump-amazon-jeff-bezos-antitrust-taxes

Did Washington Post Just Publish Its 4th Major #FakeNews Story in Last Week?

The Washington Post has had a very busy week.

The DC paper has published screaming headline after headline that turn out to be complete trash.
Even the National Enquirer would be red-faced after at this point.

It’s as if the WaPo will print anything for clicks.
They’ve become a click-bait site.

What a disgrace.

Here are the four completely inaccurate reports published by the Trump-bashing Washington Post this past week.

1.) The Washington Post was completely off in their fake news reports last week Comey asking for more funds to investigate Trump before he was fired.

On Wednesday the Washington Post reported that former FBI Director James Comey sought more resources for his Russia probe just days before he was fired by President Trump.

Comey was fired by President Trump on Tuesday.
Too bad the story was complete garbage.

The Department of Justice refuted the report Wednesday saying Comey DID NOT ask Deputy Attorney General Rosenstein for more resourses for the Russian conspiracy probe.

DOJ is pushing back hard- they say any reporting that Comey asked Rosenstein for more resources is “completely false” -now working Sen Intel https://twitter.com/thehill/status/862338205504475136 

2.) The Washington Post was wrong about Deputy Attorney General Rosenstein threatening to resign

The Washington Post reported Wednesday night that “Rosenstein threatened to resign after the narrative emerging from the White House on Tuesday evening cast him as a prime mover of the decision to fire Comey,” citing an unnamed source close to the White House.

This was completely inaccurate.

Deputy Attorney General Rod Rosenstein told WJLA reporter Michelle Macoluso he DID NOT threaten to quit over James Comey firing.

3.) The Washington Post claimed Sean Spicer was “hiding in the bushes.”

Mr. Spicer WAS NOT hiding in the bushes as the Washington Post reported.

Mediaite reported

The Washington Post offered a correction to their readers on Wednesday, in order to clarify a really strange account about how Sean Spicer tried to avoid talking to reporters after President Trump fired FBI Director James Comey.

Shortly after Comey’s firing set of a political firestorm this week, the White House had to scramble in order to control the impact and respond to overwhelming media intrigue. During this time, WaPo released a report stating that Spicer was hiding in the White House’s bushes on Tuesday night, and that he only emerged from the shrubbery once reporters promised not to film him while he took some of their questions…

…WaPo has since amended the original article with an editor’s note saying Spicer was among the bushes instead of inside them:

4.) The Washington Post accuses President Trump of releasing top secret information to the Russians during his meeting in the White House last week.

National Security Advisor, H.R. McMaster refuted the claim tonight with a statement to the press.

Natl Security Adviser McMaster made a statement denying a report that @POTUS revealed classified info to Russia. http://fxn.ws/2rkAYib 

Secretary of State Rex Tillerson, who was also in the room during the meeting between President Trump and Russian officials, also denied the allegations by the Washington Post.

It was complete crap:

WH source with direct knowledge just told me @washingtonpost didn’t talk to ANY U.S. official at mtg w/ Lavrov. “It’s Fake News”

U.S. to Ban Laptops in All Cabins of Flights From Europe, Officials Say

Acting on fears that terrorists can build bombs into laptops, Homeland Security has decided to expand the ban it imposed on Middle Eastern flights. Computers will now be checked as baggage.

The Department of Homeland Security plans to ban laptops in the cabins of all flights from Europe to the United States, European security officials told The Daily Beast. The announcement is expected Thursday.Initially a ban on laptops and tablets was applied only to U.S.-bound flights from 10 airports in North Africa and the Middle East. The ban was based on U.S. fears that terrorists have found a way to convert laptops into bombs capable of bringing down an airplane. It is unclear if the European ban will also apply to tablets.

DHS said in a statement to The Daily Beast: “No final decisions have been made on expanding the restriction on large electronic devices in aircraft cabins; however, it is under consideration. DHS continues to evaluate the threat environment and will make changes when necessary to keep air travelers safe.”

However, this move is increasing fears in the aviation industry that as well as guarding against bombs this ban could actually endanger flights. Laptops and tablets denied access to the cabin and added to checked baggage means that devices with a history of lithium-ion battery fires could set off a deadly conflagration in a cargo hold — where no one can put out the fires.

The FAA recorded 33 incidents in 2016 of personal electronic devices carried into cabins by passengers causing fire emergencies during flights, according to an FAA document reviewed by The Daily Beast. Of these, three were in laptops and two in tablets.

Two of the most serious were on Delta flights and both involved laptops.

On January 15, 2016 on a flight from Minneapolis to Atlanta fire broke out in a bag in an overhead bin shortly before landing. The smoke in the cabin became so overwhelming that when the flight reached the gate, passengers opened emergency exits over the wings and staff on the ramp helped them escape directly from the wings.

Flight attendants used halon fire suppressant extinguishers and water extinguishers to put out the fire, which had originated in two laptops.

On December 3, 2016 fire broke out in an overhead bin on a flight from Honolulu to Atlanta. Cabin crew needed three halon extinguishers and two water extinguishers to put out a fire originating in a laptop. For the rest of the flight the laptop was placed in a cooler with ice and monitored.

The FAA stressed that the 33 incidents are only ones that they are aware of. “This should not be considered as a complete listing of all such incidents…nor do they include all investigative and enforcement actions taken,” the documented stated.

Tests carried in 2015 by the FAA’s Fire Safety Branch have shown that halon gas is ineffective against fires originating in the kind of lithium-ion batteries used in laptops and tablets.

Even more to the point, these tests have revealed that the quantity of halon gas used in the automatic fire suppression systems of airplane cargo holds had no effect on a fire that begins as what is called a thermal runaway in a lithium-ion battery. Panels in the cargo hold designed to contain a fire were actually blown out in the tests, creating an explosion that would destroy an airplane.

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Commenting on these tests, the Federation of Airline Pilots’ Associations, IFALPA, representing airline pilots worldwide, said, “In fact, the fire proceeded is if the halon were not present.”

Some Middle East airlines complained to the International Civil Aviation Organization that they had been unduly penalized by the original 10-country ban. In response, the ICAO said that it accepted that improvised explosive devices in electronic devices have been “the greatest security risk to commercial aircraft for some years.”

At the same time, they said, they have asked experts to examine the safety risk of a sudden influx of electronic devices in cargo holds. And Patrick Ky, a European safety regulator, told Reuters that his agency wants airlines to avoid placing all the electronic devices in checked baggage being in the same container in the cargo hold.

At London’s Heathrow Airport, where 17 percent of all flights to the U.S. originate, is adding an extra layer of security screening for those flights at the gates.

As The Daily Beast reported in March, the original ban placed on the 10 airports in North Africa and the Middle East followed intelligence gathered during a raid on Al Qaeda in Yemen in January. Bomb makers had managed to insert into batteries an explosive device powerful enough to bring down an airplane.

First indications of this came in 2016 when a hole was blown in the fuselage of an Airbus A320 as it was on its ascent from Mogadishu, Somalia. The airplane was able to make an emergency landing. The insurgent group Al-Shababb claimed that it had equipped a passenger with a laptop rigged as a bomb.

http://www.thedailybeast.com/articles/2017/05/10/u-s-to-ban-laptops-in-all-cabins-of-flights-from-europe

U.S. Raid in Yemen Led to Laptop Ban on Flights, Officials Say

Intel sources fear terrorists can make bombs as small as computer batteries, provoking the ban on carry-on electronics at sensitive foreign airports.

Three intelligence sources told The Daily Beast that the ban on carry-on electronics aboard U.S.-bound flights from 10 airports in North Africa and the Middle East was the result of information seized during a U.S. raid on Al Qaeda in Yemen in January. The United Kingdom joined the U.S. ban Tuesday.Information from the raid shows al Qaeda’s successful development of compact, battery bombs that fit inside laptops or other devices believed to be strong enough to bring down an aircraft, the sources said. The battery bombs would need to be manually triggered, a source explained, which is why the electronics ban is only for the aircraft cabin not checked luggage.The U.S. Department of Homeland Security publicly cited two attacks on flights in the last two years, the downing of a Russian jet over the Egyptian Sinai in October 2015 and an attempt that nearly succeeded in bringing down a jet that had taken off from Mogadishu, Somalia last year and made an emergency landing after an explosion ripped open its cabin. The insurgent group Al-Shababb claimed credit for getting a laptop onboard the flight that had been rigged as a bomb.“Since they weren’t high enough, the explosion wasn’t catastrophic to the plane and they were able to land,” one source told The Daily Beast. “The bomber got sucked out of the hole, but it was proof of concept.”DHS declined to comment on the intelligence, saying only “we employ a variety of measures, both seen and unseen, to protect air travelers.”

A former British Army intelligence analyst told The Daily Beast that an investigation into the device suggested that it used a military grade high explosive that generates a supersonic shock wave. It was probably the same explosive used by “shoe bomber” Richard Reid: PETN, or pentaerythritol tritinate, which is hard to detect. It delivers high yield for its weight: just 100 grams can destroy a car. 

Although the ban on laptops is based on the belief that the compact explosive inside a battery would have to be triggered by the bomber in the airplane the British analyst believes that a laptop might actually be equipped with a timer. “The timing mechanism can be quite small. In fact, it is believed that the Somali bomb was pre-timed. Therefore a ban that still allows laptops in the cargo hold does little to negate the threat.”

He also points out such a device could not be triggered remotely: “There is no phone reception at 30,000 feet and installing a link to a satellite connection would be too bulky.”

The chief bomb maker for Al Qaeda in the Arabian Peninsula, Ibrahim al-Asiri, has been working on packing even smaller devices, the source added. CNN first reported the news on Tuesday evening.

The problem with this theory is that it implies that the security screening of electronic devices at the 10 airports is no better than at the airport in a failed state like Somalia. The pilot of the Airbus A320 involved in that incident said of that airport: “the security is zero.” Airport employees had conspired with the bomber to get the laptop through security.

One source said the foreign countries included in the ban were selected because of their exposure to al Qaeda groups and members who might try to bring a battery bomb on a plane heading for the U.S.

Egyptian intelligence officials were briefed over the weekend, according to one source, and have long been concerned about another plane departing from Cairo being brought down like the Metrojet plane in Oct. 2015. And there is another disaster, EgyptAir Flight 804, from Paris Charles De Gaulle airport to Cairo in May that crashed into the eastern Mediterranean and killed 66 people.

The crash has subsequently been shrouded in mystery. In December the Egyptian authorities announced that a criminal investigation had been opened. They had had six months in which to analyze data from the airplane’s two flight recorders recovered from the wreck. But there was a dispute between the Egyptian and French about the cause. The French air crash investigators said that it was not possible at that stage to draw conclusions about the origin of the accident.

It is known from data transmitted from the Airbus A320 as it spiraled down from its cruise height of 37,000 feet that it suffered a rapid cascade of failures, beginning with an electrical problem in the cockpit. This escalated into a fire in the electronics bay below the cockpit that effectively fried the computers controlling the flight.

There were indications that the disastrous sequence started with some kind of explosion in the passenger toilet immediately above the electronics bay and behind the cockpit. Video taken of the wreck showed heat damage beneath the cockpit.

Before leaving Paris the airplane had flown from Asmara in Eritrea, to Cairo and then onward to Tunis and Paris. That means that investigators would be looking at the possibility of an explosive device being placed on the airplane at any of those airports.

In early March, a Russian passenger on a Turkish Airways flight from Alexandria to Istanbul was arrested after an improvised explosive was found in his luggage, according to a DHS alert in early March citing Egyptian media.

The gravity of the move had been underscored by the political response to it. Representative Adam Schiff, Californian Democrat and ranking member of the House Permanent Select Committee on Intelligence, said in a statement:

“Over the weekend I received an additional briefing by the Department of Homeland Security and I fully support the new security precautions. These steps are both necessary and proportional to the threat.”

Several Federal Air Marshals told The Daily Beast they were angry they were blindsided by the ban, only to learn about it from CNN or BBC news reports circulated by management. (President Donald Trump has repeatedly referred to CNN as “fake news.”) But DHS spokesman said they shouldn’t be surprised to not receive notification about something they aren’t involved in.

“FAMS aren’t involved in this particular action so why would they be notified of an action that doesn’t directly affect their duties?” DHS spokesman David Lapan told The Daily Beast.

Federal Air Marshals only fly on U.S. carriers and the electronics ban involves direct flights into the U.S. from countries served by foreign airlines.

The most consequential impact of the new measures will be on the three airlines operating out of the Persian Gulf states: Emirates, Etihad and Qatar Airways. In the last decade there has been a major transformation of the connections between inter-continental airline routes. Led by Emirates from their hub in Dubai this has put the three airlines in a dominant position to connect flights from Asia, Africa, the Middle East and Europe and, significantly, to directly fly passengers from those regions to the United States.

Moreover, these airlines have set new standards of service, particularly for business class passengers. Anyone flying business class with these carriers finds the cabins glowing with the glare from many laptops as workaholic executives and managers use their flight time to catch up on work.

The three major U.S. international carriers, Delta, American and United, have found themselves left with fleets of older airplanes that can’t match the quality of cabin amenities of the Gulf airlines, who use latest generation jets like the Airbus A380 super jumbo and the Airbus A350. Over the last few years those airlines have pushed into major U.S. business centers like New York, Dallas, Houston, Chicago, Los Angeles, Boston and Seattle – scooping up, for example, major players in the energy and tech industries.

Craig Jenks, President of a New York base consultancy, Airline/Aircraft projects, pointed out that the ban’s effects reach far beyond the named airports.

In particular, Emirates, Etihad and Qatar Airways all have a high volume of passengers originating in Indian cities. Among these are many in high tech industries flying on from hubs in the Gulf directly to U.S. tech business centers like San Francisco, Seattle, Boston and New York.

“Now, all of a sudden, you arrive at a Gulf airport headed for San Francisco with your light carry-on and you discover, no laptop on board nor even while in transit at the hub. Intentionally or not, this is a negative for the Gulf carriers,” Jenks said.

Now that the ban has been joined by the UK, which has said that passengers on 14 airlines would not be able to carry laptops into the cabin of direct flights to London from Turkey, Lebanon, Jordan, Egypt, Tunisia and Saudi Arabia, the disruption to business travelers has become even more widespread.

Air travel remains a priority target for terrorists. And, once more, the mere threat of terror attacks has proved itself as costly, at least in economic impact, as the act of terror.

For example, one recent casualty has been Turkish Airlines. In 2015 it was following the Gulf airlines’ model to exploit the strategic location of Istanbul as a hub for the Middle East and Africa. In that year it made a profit of $872 million. Last year that became a loss of $463 million. Two events, a terror attack on Istanbul airport and the failed coup in July, as well as fear of new terror attacks, have put the airline into a financial crisis. Istanbul is on both the U.S. and U.K. list of airports covered by the new ban.

Story 2: The Real Danger To The Our Republic Is Progressive Propaganda About Trump — American People Are Ignoring Them As They Get Trump Media Fatigue — Videos 

Tucker: Hate of Trump has blinded media

‘We are getting Trump fatigue … to his benefit!’ — Lionel

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The Pronk Pops Show 752, September 9, 2016, Story 1: North Korean Nuclear Weapons Threat Becoming A Reality — The End of North Korea As We Know It — Massive Retaliation? — Videos — Story 2: Trump Speech To Values Voter Summit in DC — Story 3: The Turning Point Toward The October Fall of Hillary Clinton — Independents Breaking Big For Trump (49%) vs. Clinton (29%) — Videos

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Story 1: North Korean Nuclear Weapons Threat Becoming A Reality — The End of North Korea As We Know It — Massive Retaliation? — Videos 

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North Korean Threat U.S. Pentagon Beefing Up Missile Defense in Response – Kim Jong-un

Published on Mar 16, 2013

The Pentagon is beefing up the nation’s missile defense in the wake of provocative nuclear threats from North Korea and is set to deploy 14 additional ground-based interceptors at missile silos in Alaska and California, congressional and U.S. officials tell Fox News.

The extra interceptors on the West Coast, designed to counter attacks from an intercontinental ballistic missile, would bring the total number of interceptors to 44, a plan originally proposed by the Bush administration. President Obama stopped the deployment of the additional interceptors when he took office in 2009, leaving the total number at 30.

Congressional sources claim that by stalling the original plan and forcing the military to bring back on line silos that otherwise would have been operational, the Obama administration has effectively wasted millions in taxpayer’s dollars.

It’s a sentiment that is not likely to sit well with conservative lawmakers when the plan is announced on Monday, particularly as they seek new austerity measures.

A senior Pentagon official hinted at the decision Tuesday in a speech to the Atlantic Council in Washington just days after Pyongyang threatened a “pre-emptive” nuclear strike on the United States.

“North Korea’s shrill public pronouncements underscore the need for the U.S. to continue to take prudent steps to defeat any future North Korean ICBM,” James Miller, undersecretary of Defense for policy, said.

Upon completion of Missile Field Number One at Fort Greely, Alaska, Miller said, “we have the ability to swiftly deploy up to 14 additional ground-based interceptors if needed.” In addition to Fort Greely, current interceptors are set up at Vandenberg Air Force Base in California.

Missile Field Number One was one of the areas where the Obama administration stopped construction in 2009. Congressional sources say it will cost at least $205 million to bring that missile field up to speed, more than it would have cost four years ago. These officials say the price of the missiles themselves also has increased.

An Obama administration official tells Fox News that the increase in interceptors is a logical response to an evolving threat from North Korea and that “anyone who suggests we should have stayed the course” with the Bush administration’s plan is engaging in “Monday morning quarterbacking.”

This official says the North Korean threat is much different from what it was in 2009. Along with the continued testing of nuclear weapons and longer-range delivery systems, the North Koreans have advanced their mobile missile capability, even within the last six to eight months.

“What we were defending against (from North Korea) four years ago was a single rogue missile, now with the mobile missile developing you have got to be able to counter multiple missile threats … so you have to expand your capability.”

Whether intentional or not, the announcement also coincides with 30th anniversary of President Ronald Reagan’s Strategic Defense Initiative speech. The nation’s first ground-based interceptors were set up in 2002 under President George W. Bush.

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ALERT: Kim Jong Un Orders Nukes to be Readied for Use After UN Toughest Sanctions on North Korea

Published on Mar 3, 2016

North Korean state media is reporting that Kim Jong Un has ordered nuclear weapons to be readied for use “at any time.” Leader reportedly tells military to adopt ‘pre-emptive’ posture after imposition of toughest UN sanctions to date
The North Korean leader, Kim Jong-un, has ordered his country to be ready to use nuclear weapons “at any time” in the face of a growing threat from enemies, according to official media.

Kim also said the North should turn its military posture to a “pre-emptive basis” because enemies were threatening the state’s survival, the regime’s KCNA news agency announced on Friday.
According to the agency, Kim made his comments while monitoring the test firing of a new large-calibre multiple rocket launcher on Thursday, just hours after the UN security council unanimously adopted a resolution penalising the North for its recent nuclear test and long-range rocket launch.

South Korea’s defence ministry said the North fired half a dozen rockets about 100-150km (60-90 miles) into the sea off its eastern coast on Thursday.

In a clear threat to neighbouring South Korea, Kim said the new rocket launcher should be “promptly deployed” along with other newly developed weaponry.

“At an extreme time when the Americans … are urging war and disaster on other countries and people, the only way to defend our sovereignty and right to live is to bolster our nuclear capability,” Kim said.

The US-drafted UN resolution adopted by the security council late on Wednesday laid out the toughest sanctions imposed on Pyongyang to date over its nuclear weapons programme and will, if implemented effectively, apply significant economic pressure to Kim’s regime.

North Korea’s Nuclear Threat: VICE News Interviews Victor Cha

Published on Mar 9, 2016

Victor Cha was President George W. Bush’s top advisor on North Korea and participated in the Six-Party Talks, in which the US, Russia, China, Japan and South Korea tried to negotiate with the regime of late leader Kim Jong-il to halt North Korea’s nuclear program. The talks were unsuccessful, and North Korea’s nuclear capabilities have never been greater.

In January, North Korea conducted a nuclear test for the fourth time since 2009, successfully detonating what it claimed was a hydrogen bomb. A month later, North Korea launched a satellite into orbit, violating an international ban on ballistic missile testing. The UN Security Council recently voted to enact harsh new sanctions, which prompted young leader Kim Jong-un to publicly order his military to ready their nukes for use at any time.

VICE News sat down with Cha, now a senior adviser and the Korea Chair at the Center for Strategic and International Studies, to talk about North Korea’s nuclear threats, Pyongyang’s uneasy alliance with China, and the state of the Kim regime.

Photo

Researchers at the Earthquake and Volcano Monitoring Division, in Seoul, the South Korean capital, checking the seismic waves that were measured on Friday. CreditWoohae Cho/Getty Images

North Korea said it conducted its fifth underground nuclear test on Friday. Since the first test, almost a decade ago, the size of the resulting earthquakes from the country’s test site have increased, indicating that the devices are becoming increasingly powerful.

The device detonated on Friday looks to have had a force equivalent of 10 kilotons of TNT, according to the South’s Defense Ministry. In contrast, the last device tested by the North, in January, had a force equivalent of six kilotons of TNT, the South’s intelligence agency said. The aboveground Trinity Test in New Mexico in July 1945, which ushered in the nuclear age, had a yield of 20 kilotons.

But power is not the only measure of a device’s lethality. The weapon must also have a way to be delivered. South Korean, American and Japanese officials want to determine whether the North Koreans are capable of building a miniaturized nuclear device that can be mounted on a ballistic missile and successfully detonated at a target hundreds, if not thousands, of miles from the launch site. In the past decade, South Korean and American experts have said that the North appears to be closer to achieving that goal.

Here is a timeline of how North Korea built up the capability of its nuclear weapons. The earthquake magnitudes are from the United States Geological Survey, which differ from those measured by the South Korean authorities. They may also be slightly revised from numbers reported immediately after the events.

Oct. 8, 2006: 9:35 p.m. E.T.

Magnitude of Earthquake: 4.3

Device: United States officials said at the time that the weapon usedplutonium and had a yield of less than one kiloton.

Missiles: Three months before the nuclear test, North Korea fired a barrage of missiles into the Sea of Japan, including a Taepodong 2 intercontinental missile designed to be capable of reaching Alaska. The Taepodong 2 test was a failure, with the missile falling into the sea before its first stage burned out.

Photo

A screen showing the seismic waves on Friday. The device detonated on Friday appears to have been the equivalent of 10 kilotons of TNT, according to South Korea’s Defense Ministry.CreditAhn Young-Joon/Associated Press

May 24, 2009: 8:54 p.m. E.T.

Magnitude of Earthquake: 4.7

Device: Chinese scientists estimated that this bomb had a yield of 2.35 kilotons.

Missiles: A failed satellite launch using a Taepodong 2 missile in April 2009 sent its payload into the Pacific Ocean. On July 4, 2009, North Korea launched three missiles into the sea, with none apparently flying more than 300 miles.

Feb 12, 2013: 9:57 p.m. E.T.

Magnitude of Earthquake: 5.1

Device: North Korea said this bomb, stronger than the first two tests, was miniaturized. After the launch, the Pentagon’s Defense Intelligence Agencyestimated with “moderate confidence” that North Korea had learned how to make a miniaturized nuclear weapon capable of being delivered by a ballistic missile. But the report said the weapon’s “reliability will be low.” Military officials in the United States and South Korea publicly expressed doubt that North Korea had actually developed such a warhead.

Missiles: In May 2013, North Korea launched three short-range missilesinto the Sea of Japan.

Jan. 5, 2016: 8:30 p.m. E.T.

Magnitude of Earthquake: 5.1

Device: North Korea claimed this device was a hydrogen bomb. In May, American and South Korean intelligence officials concluded that North Korea was now able to mount nuclear warheads on short- and medium-range missiles that would be capable of hitting Japan and South Korea.

Missiles: In April, North Korea launched a missile from a submarine.

Sept. 8, 2016: 8:30 p.m. E.T.

Magnitude of Earthquake: 5.3

Device: South Korean officials said this was North Korea’s most powerful device to date.

Missiles: In June, North Korea successfully launched an intermediate-range ballistic missile into high altitude after five consecutive failures. The missile may be capable of reaching American forces based on Guam, in the Pacific Ocean.

Story 2: Trump Speech To Values Voter Summit in DC — Videos

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Democrats wonder and worry: Why isn’t Clinton far ahead of Trump?

September 9 at 8:23 PM
With Election Day less than two months away, Democrats are increasingly worried that Hillary Clinton has not built a formidable lead against Donald Trump despite his historic weaknesses as a national party candidate.

Even the Democratic nominee’s advisers acknowledge that she must make changes, and quickly. Clinton leads Trump by three percentage points, having fallen from her high of nine points in August, according to the latest RealClearPolitics average. That tightening has frustrated many Clinton allies and operatives, who are astonished that she isn’t running away with this race, given Trump’s deep unpopularity and his continuing stream of controversial comments.

“Generally, I’m concerned, frankly,” said former Democratic Senate leader Thomas A. Daschle (S.D.). “It still looks positive, and I think if you look at the swing states and where she is right now, she’s got a lead. But it’s certainly not in the bag. We have two months to go, and I think it’s going to be a competitive race all the way through. I would say she’s got at least a 60 percent chance of winning.”

At the same time, Daschle said, “all the things that Trump has done, the numbers should be far more explicitly in her favor, but they’re not.”

Among Democrats’ concerns is the fact that Clinton spent a great deal of time over the summer raising millions of dollars in private fundraisers while Trump was devoting much of his schedule to rallies, speeches and TV appearances — although many of those didn’t go as well as his campaign may have hoped.

Clinton has focused more heavily on fundraising than Democratic strategists had hoped would be necessary at this stage, partly to help Democrats running for Congress and state offices who would be useful to Clinton if she is president and partly to hold off further erosion in the polls.

One new goal for Clinton now, aides said, is to spend more time trying to connect directly with voters by sharing a more personal side of herself — and by telling them where she wants to take the country.

https://www.washingtonpost.com/politics/democrats-wonder-and-worry-why-isnt-clinton-far-ahead-of-trump/2016/09/09/543f3342-7693-11e6-8149-b8d05321db62_story.html

 

Trump closes in on Clinton’s projected electoral lead: Reuters/Ipsos Poll

By Chris Kahn

NEW YORK (Reuters) – Republican Donald Trump appears to have carved out a wider path to the White House as a number of states including Florida and Ohio are no longer considered likely wins for Democratic rival Hillary Clinton, according to the latest Reuters/Ipsos States of the Nation project released on Saturday.

The project, which combines opinion polls with an analysis of voting patterns under different election scenarios, still shows Clinton would have the best chance of winning the presidency if the Nov. 8 election were held today. Yet Trump has caught up to her level of support in several states.

Clinton now has an 83 percent chance of winning the election by an average of 47 votes in the Electoral College, the body that ultimately selects the president. In late August, the States of the Nation estimated that Clinton had a 95 percent chance of winning by an average of 108 electoral votes.

Over the past few weeks, Clinton’s lead in the national polls has slipped considerably. Polls tend to narrow as Election Day nears, and the Clinton campaign has struggled to overcome controversy about how she handled classified information while serving assecretary of state.

A separate Reuters/Ipsos poll of likely voters showed an 8-point lead for Clinton has vanished since the last week of August.

Clinton is still favored to win 17 states, including many with large, urban populations such as New York, New Jersey and California that heavily influence the outcome of the election. Trump would likely win 23 states, many of them with smaller populations.

The number of states projected for Clinton has dropped over the past few weeks. Two of those states, Ohio and Florida, were considered likely wins for Clinton in late August. Now the candidates are about even in support. Five more states, including Michigan and North Carolina are also up for grabs.

The sample size was insufficient to determine the outcome in Wyoming, Vermont, Alaska and the District of Columbia, though Alaska usually votes Republican and Washington D.C. for the Democratic Party candidate.

The Reuters/Ipsos States of the Nation project is driven by an online survey that gathers responses from about 15,000 people per week. Their responses are weighted according to the latest population estimates, and each respondent is ranked according to their likelihood to vote.

Once the poll is complete, the project tallies the levels of support and estimated error for both candidates, and then runs multiple election simulations given their respective support.

 http://www.reuters.com/statesofthenation for the project’s interactive tool that allows users to set turnout targets for various voter groups.)

 

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The Pronk Pops Show 687, May 26, 2016, Story 1: Is The Lying Lunatic Left Above the Law? Obama and Clinton — The American People Will Vote Democratic Party Out of Office In November — Trump Winning Momentum — Trump Rattles Obama — No Obama Third Term — Videos

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The Pronk Pops Show 654, April 8, 2016, Story 1: Clinton Laughing At FBI and American People Believing She Is Protected By Obama and Above The Law — Trump and Cruz According To Polls Cannot Defeat Clinton — Do Not Believe Big Media Propaganda — Will The Clinton/Obama Deal Hold? — Mistakes Were Made — Crimes Committed and Covered Up — Clinton Sent To Prison and Trump Moves To Whitehouse — Videos

Posted on April 8, 2016. Filed under: 2016 Presidential Campaign, 2016 Presidential Candidates, American History, Bernie Sanders, Breaking News, Communications, Congress, Corruption, Countries, Crime, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Government, Government Dependency, Government Spending, High Crimes, Hillary Clinton, Hillary Clinton, History, House of Representatives, Media, National Security Agency, News, Obama, Philosophy, Photos, Politics, Polls, President Barack Obama, Scandals, Senate, Terror, Terrorism, United States of America, Videos, Violence, Wealth, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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The Pronk Pops Show Podcasts

Pronk Pops Show 654: April 8, 2016

Pronk Pops Show 653: April 7, 2016

Pronk Pops Show 652: April 6, 2016

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Pronk Pops Show 650: April 1, 2016

Pronk Pops Show 649: March 31, 2016

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Pronk Pops Show 640: March 10, 2016

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Pronk Pops Show 635: March 3, 2016

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Pronk Pops Show 633: March 1, 2016

Pronk Pops Show 632: February 29, 2016

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Pronk Pops Show 623: February 12, 2016

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Pronk Pops Show 605: January 15, 2015

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Pronk Pops Show 603: January 13, 2016

Pronk Pops Show 602: January 12, 2016

Pronk Pops Show 601: January 11, 2015

Pronk Pops Show 600: January 8, 2016

Pronk Pops Show 599: January 6, 2016

Pronk Pops Show 598: January 5, 2016

Story 1: Clinton Laughing At FBI and American People Believing She Is Protected By Obama and Above The Law — Trump and Cruz According To Polls Cannot Defeat Clinton — Do Not Believe Big Media Propaganda — Will The Clinton/Obama Deal Hold? — Mistakes Were Made — Crimes Committed and Covered Up — Clinton Sent To Prison and Trump Moves To White House — Videos

clinton and generalobama-journalist-protection-political-cartoon

Tom Stiglich / www.timstiglich.com

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LATEST POLLS

Friday, April 8
Race/Topic   (Click to Sort) Poll Results Spread
New York Republican Presidential Primary Emerson Trump 56, Kasich 17, Cruz 22 Trump +34
New York Democratic Presidential Primary Emerson Clinton 56, Sanders 38 Clinton +18
California Democratic Presidential Primary Field Clinton 47, Sanders 41 Clinton +6
New York: Trump vs. Clinton Emerson Clinton 54, Trump 36 Clinton +18
New York: Cruz vs. Clinton Emerson Clinton 58, Cruz 30 Clinton +28
New York: Kasich vs. Clinton Emerson Clinton 48, Kasich 41 Clinton +7
New York: Trump vs. Sanders Emerson Sanders 51, Trump 38 Sanders +13
New York: Cruz vs. Sanders Emerson Sanders 56, Cruz 29 Sanders +27
President Obama Job Approval Gallup Approve 52, Disapprove 44 Approve +8
President Obama Job Approval Rasmussen Reports Approve 52, Disapprove 46 Approve +6
President Obama Job Approval Associated Press-GfK Approve 50, Disapprove 50 Tie
Congressional Job Approval Associated Press-GfK Approve 13, Disapprove 86 Disapprove +73
Direction of Country Associated Press-GfK Right Direction 29, Wrong Track 71 Wrong Track +42
Thursday, April 7
Race/Topic   (Click to Sort) Poll Results Spread
California Republican Presidential Primary Field Trump 39, Cruz 32, Kasich 18 Trump +7
Maryland Republican Presidential Primary Wash Post/Univ. of Maryland Trump 41, Kasich 31, Cruz 22 Trump +10
Maryland Democratic Presidential Primary Wash Post/Univ. of Maryland Clinton 55, Sanders 40 Clinton +15
2016 Republican Presidential Nomination The Atlantic/PRRI Trump 37, Cruz 31, Kasich 23 Trump +6
2016 Democratic Presidential Nomination The Atlantic/PRRI Clinton 46, Sanders 47 Sanders +1
General Election: Trump vs. Clinton McClatchy/Marist Clinton 50, Trump 41 Clinton +9
General Election: Cruz vs. Clinton McClatchy/Marist Clinton 47, Cruz 47 Tie
General Election: Kasich vs. Clinton McClatchy/Marist Kasich 51, Clinton 42 Kasich +9
General Election: Trump vs. Sanders McClatchy/Marist Sanders 57, Trump 37 Sanders +20
General Election: Cruz vs. Sanders McClatchy/Marist Sanders 53, Cruz 41 Sanders +12
General Election: Kasich vs. Sanders McClatchy/Marist Sanders 52, Kasich 41 Sanders +11
California: Trump vs. Clinton Field Clinton 59, Trump 31 Clinton +28
California: Cruz vs. Clinton Field Clinton 55, Cruz 32 Clinton +23
Pennsylvania Senate – Toomey vs. Sestak Quinnipiac Toomey 47, Sestak 39 Toomey +8
Pennsylvania Senate – Toomey vs. McGinty Quinnipiac Toomey 47, McGinty 38 Toomey +9
President Obama Job Approval McClatchy/Marist Approve 50, Disapprove 46 Approve +4
President Obama Job Approval Reuters/Ipsos Approve 46, Disapprove 50 Disapprove +4
Direction of Country Reuters/Ipsos Right Direction 25, Wrong Track 63 Wrong Track +38
Direction of Country McClatchy/Marist Right Direction 26, Wrong Track 71 Wrong Track +45

Krauthammer: I Can’t See FBI Taking No Action After Hillary Email Probe

Comey pledges ‘no outside influence’ in Clinton email probe Fox News Video

NBC’s Lauer To Clinton On Emails: Do You Think FBI And DOJ Will Say “We’re Sorry, Carry On”

CLINTON AWAITING FBI INTERVIEW REGARDING PRIVATE EMAIL SERVER

Clinton Email Scandal – Trump NATO Comments – Judge Andrew Napolitano – Stuart Varney

Judge Jeanine Pirro Opening Statement- Hillary Clinton Vs FBI – Email Scandal – Time Is Up!

State Dept Review Of Hillary Clinton Emails On Hold Pending Completion Of FBI Criminal Probe 2

Not April Fools: State Dept Suspends Probe Of “Top Secret” Clinton Emails Pending FBI Investigation

‘You get ONE SHOT at the QUEEN!’ – FBI gearing up to interview Clinton on email scandal

Hillary Clinton full interview with Matt Lauer on “TODAY” Show

Clinton Foundation donors a bigger scandal than emails?

Romanian Hacker ‘Guccifer’ Appears In US Court

Hacker Of Bush E-mails Gets Four Years In Jail

Hacker Guccifer Slapped With 4 Years In Prison

Mark Levin: FBI enters the final phase of its investigation against Hillary Clinton (March 31 2016)

Obama & Hillary Clinton Email Scandal. Is She Finished? 3/31/16

Judge Napolitano There Will Be An Indictment Before November Elections..

Judge Napolitano The FBI Now Has Leverage On Hillary Clinton!

Source: No ‘coincidence’ Romanian hacker Guccifer extradited amid Clinton probe

How Clinton’s email scandal took root

Hillary Clinton’s email problems began in her first days as secretary of state. She insisted on using her personal BlackBerry for all her email communications, but she wasn’t allowed to take the device into her seventh-floor suite of offices, a secure space known as Mahogany Row.

For Clinton, this was frustrating. As a political heavyweight and chief of the nation’s diplomatic corps, she needed to manage a torrent of email to stay connected to colleagues, friends and supporters. She hated having to put her BlackBerry into a lockbox before going into her own office.

Her aides and senior officials pushed to find a way to enable her to use the device in the secure area. But their efforts unsettled the diplomatic security bureau, which was worried that foreign intelligence services could hack her BlackBerry and transform it into a listening device.

On Feb. 17, 2009, less than a month into Clinton’s tenure, the issue came to a head. Department security, intelligence and technology specialists, along with five officials from the National Security Agency, gathered in a Mahogany Row conference room. They explained the risks to Cheryl Mills, Clinton’s chief of staff, while also seeking “mitigation options” that would accommodate Clinton’s wishes.

“The issue here is one of personal comfort,” one of the participants in that meeting, Donald Reid, the department’s senior coordinator for security infrastructure, wrote afterward in an email that described Clinton’s inner circle of advisers as “dedicated [BlackBerry] addicts.”

Clinton used her BlackBerry as the group continued looking for a solution. But unknown to diplomatic security and technology officials at the department, there was another looming communications vulnerability: Clinton’s Black­Berry was digitally tethered to a private email server in the basement of her family home, some 260 miles to the north in Chappaqua, N.Y., documents and interviews show.

Those officials took no steps to protect the server against intruders and spies, because they apparently were not told about it.

he vulnerability of Clinton’s basement server is one of the key unanswered questions at the heart of a scandal that has dogged her campaign for the Democratic presidential nomination.

Since Clinton’s private email account was brought to light a year ago in a New York Times report — followed by an Associated Press report revealing the existence of the server — the matter has been a source of nonstop national news. Private groups have filed lawsuits under the Freedom of Information Act. Investigations were begun by congressional committees and inspector general’s offices in the State Department and the U.S. Intelligence Community, which referred the case to the FBI in July for “counterintelligence purposes” after determining that the server carried classified material.

The FBI is now trying to determine whether a crime was committed in the handling of that classified material. It is also examining whether the server was hacked.

Dozens of FBI personnel have been deployed to run down leads, according to a lawmaker briefed by FBI Director James B. Comey. The FBI has accelerated the investigation because officials want to avoid the possibility of announcing any action too close to the election.

The Washington Post reviewed hundreds of documents and interviewed more than a dozen knowledgeable government officials to understand the decisions and the implications of Clinton’s actions. The resulting scandal revolves around questions about classified information, the preservation of government records and the security of her email communication.

From the earliest days, Clinton aides and senior officials focused intently on accommodating the secretary’s desire to use her private email account, documents and interviews show.

Throughout, they paid insufficient attention to laws and regulations governing the handling of classified material and the preservation of government records, interviews and documents show. They also neglected repeated warnings about the security of the BlackBerry while Clinton and her closest aides took obvious security risks in using the basement server.

Senior officials who helped Clinton with her BlackBerry claim they did not know details of the basement server, the State Department said, even though they received emails from her private account. One email written by a senior official mentioned the server.

The scandal has pitted those who say Clinton was innocently trying to find the easiest way to communicate against those who say she placed herself above the law in a quest for control of her records. She and her campaign have been accused of confusing matters with contradictory and evolving statements that minimized the consequences of her actions.

Clinton, 68, declined to be interviewed. She has said repeatedly that her use of the private server was benign and that there is no evidence of any intrusion.

In a news conference last March, she said: “I opted for convenience to use my personal email account, which was allowed by the State Department, because I thought it would be easier to carry just one device for my work and for my personal emails instead of two.”

During a Democratic debate on March 9, she acknowledged using poor judgment but maintained she was permitted to use her own server: “It wasn’t the best choice. I made a mistake. It was not prohibited. It was not in any way dis­allowed.”

The unfolding story of Clinton’s basement server has outraged advocates of government transparency and mystified political supporters and adversaries alike. Judge Emmet G. Sullivan of the U.S. District Court in Washington, D.C., who is presiding over one of the FOIA lawsuits, has expressed puzzlement over the affair. He noted that Clinton put the State Department in the position of having to ask her to return thousands of government records — her work email.

“Am I missing something?” Sullivan asked during a Feb. 23 hearing. “How in the world could this happen?”

Hillary Clinton began preparing to use the private basement server after President Obama picked her to be his secretary of state in November 2008. The system was already in place. It had been set up for former president Bill Clinton, who used it for personal and Clinton Foundation business.

On Jan. 13, 2009, a longtime aide to Bill Clinton registered a private email domain for Hillary Clinton, clintonemail.com, that would allow her to send and receive email through the server.

Eight days later, she was sworn in as secretary of state. Among the multitude of challenges she faced was how to integrate email into her State Department routines. Because Clinton did not use desktop computers, she relied on her personal BlackBerry, which she had started using three years earlier.

For years, employees across the government had used official and private email accounts.

The new president was making broad promises about government transparency that had a bearing on Clinton’s communication choices. In memos to his agency chiefs, Obama said his administration would promote accountability through the disclosure of a wide array of information, one part of a “profound national commitment to ensuring an open government.” That included work emails.

One year earlier, during her own presidential campaign, Clinton had said that if elected, “we will adopt a presumption of openness and Freedom of Information Act requests and urge agencies to release information quickly.”

But in those first few days, Clinton’s senior advisers were already taking steps that would help her circumvent those high-flown words, according to a chain of internal State Department emails released to Judicial Watch, a conservative nonprofit organization suing the government over Clinton’s emails.

Leading that effort was Mills, Clinton’s chief of staff. She was joined by Clinton adviser Huma Abedin, Undersecretary Patrick Kennedy and Lewis Lukens, a senior career official who served as Clinton’s logistics chief. Their focus was on accommodating Clinton.

Mills wondered whether the department could get her an encrypted device like the one from the NSA that Obama used.

“If so, how can we get her one?” Mills wrote the group on Saturday evening, Jan. 24.

Lukens responded that same evening, saying he could help set up “a stand alone PC in the Secretary’s office, connected to the internet (but not through our system) to enable her to check her emails from her desk.”

Kennedy wrote that a “stand-alone separate network PC” was a “great idea.”

Abedin and Mills declined to comment for this article, according to Clinton spokesman Brian Fallon. Lukens also declined to comment, according to the State Department.

As undersecretary for management, Kennedy occupies a central role in Clinton’s email saga. The department acknowledged that Kennedy, as part of his normal duties, helped Clinton with her BlackBerry. But in a statement, the department said: “Under Secretary Kennedy maintains that he was unaware of the email server. Completely separate from that issue, Under Secretary Kennedy was aware that at the beginning of her tenure, Secretary Clinton’s staff was interested in setting up a computer at the Department so she could email her family during the work day.

“As we have previously made clear — no such computer was ever set up. Furthermore, Under Secretary Kennedy had very little insight into Secretary Clinton’s email practices including how ­frequently or infrequently then-Secretary Clinton used email.”

As it happened, Clinton would never have a government BlackBerry, personal computer or email account. A request for a secure device from the NSA was rebuffed at the outset: “The current state of the art is not too user friendly, has no infrastructure at State, and is very expensive,” Reid, the security official, wrote in an email on Feb. 13, adding that “each time we asked the question ‘What was the solution for POTUS?’ we were politely told to shut up and color.”

Clinton would continue to use her BlackBerry for virtually all of her government communication, but not on Mahogany Row.

Her first known BlackBerry communication through the basement server came on Jan. 28, 2009, when Clinton exchanged notes with Army Gen. David H. Petraeus, then chief of the U.S. Central Command, according to a State Department spokeswoman. It has not been released.

Few knew the details behind the new clintonemail.com address. But news about her choice to use her own BlackBerry spread quickly among the department’s diplomatic security and “intelligence countermeasures” specialists.

Their fears focused on the seventh floor, which a decade earlier had been the target of Russian spies who managed to plant a listening device inside a decorative chair-rail molding not far from Mahogany Row. In more recent years, in a series of widely publicized cyberattacks, hackers breached computers at the department along with those at other federal agencies and several major corporations.

The State Department security officials were distressed about the possibility that Clinton’s BlackBerry could be compromised and used for eavesdropping, documents and interviews show.

After the meeting on Feb. 17 with Mills, security officials in the department crafted a memo about the risks. And among themselves, they expressed concern that other department employees would follow the “bad example” and seek to use insecure BlackBerrys themselves, emails show.

As they worked on the memo, they were aware of a speech delivered by Joel F. Brenner, then chief of counterintelligence at the Office of the Director of National Intelligence, on Feb. 24 at a hotel in Vienna, Va., a State Department document shows. Brenner urged his audience to consider what could have happened to them during a visit to the recent Beijing Olympics.

“Your phone or BlackBerry could have been tagged, tracked, monitored and exploited between your disembarking the airplane and reaching the taxi stand at the airport,” Brenner said. “And when you emailed back home, some or all of the malware may have migrated to your home server. This is not hypothetical.”

At the time, Clinton had just returned from an official trip that took her to China and elsewhere in Asia. She was embarking on another foray to the Middle East and Europe. She took her BlackBerry with her.

In early March, Assistant Secretary for Diplomatic Security Eric Boswell delivered a memo with the subject line “Use of Blackberries in Mahogany Row.”

“Our review reaffirms our belief that the vulnerabilities and risks associated with the use of Blackberries in the Mahogany Row [redacted] considerably outweigh the convenience their use can add,” the memo said.

He emphasized: “Any unclassified Blackberry is highly vulnerable in any setting to remotely and covertly monitoring conversations, retrieving e-mails, and exploiting calendars.”

Nine days later, Clinton told Boswell that she had read his memo and “gets it,” according to an email sent by a senior diplomatic security official. “Her attention was drawn to the sentence that indicates (Diplomatic Security) have intelligence concerning this vulnerability during her recent trip to Asia,” the email said.

But Clinton kept using her private BlackBerry — and the basement server.

The server was nothing remarkable, the kind of system often used by small businesses, according to people familiar with its configuration at the end of her tenure. It consisted of two off-the-shelf server computers. Both were equipped with antivirus software. They were linked by cable to a local Internet service provider. A firewall was used as protection against hackers.

Few could have known it, but the email system operated in those first two months without the standard encryption generally used on the Internet to protect communication, according to an independent analysis that Venafi Inc., a cybersecurity firm that specializes in the encryption process, took upon itself to publish on its website after the scandal broke.

Not until March 29, 2009 — two months after Clinton began using it — did the server receive a “digital certificate” that protected communication over the Internet through encryption, according to Venafi’s analysis.

It is unknown whether the system had some other way to encrypt the email traffic at the time. Without encryption — a process that scrambles communication for anyone without the correct key — email, attachments and passwords are transmitted in plain text.

“That means that anyone could have accessed it. Anyone,” Kevin Bocek, vice president of threat intelligence at Venafi, told The Post.

The system had other features that made it vulnerable to talented hackers, including a software program that enabled users to log on directly from the World Wide Web.

Four computer-security specialists interviewed by The Post said that such a system could be made reasonably secure but that it would need constant monitoring by people trained to look for irregularities in the server’s logs.

“For data of this sensitivity . . . we would need at a minimum a small team to do monitoring and hardening,” said Jason Fossen, a computer-security specialist at the SANS Institute, which provides cybersecurity training around the world.

The man Clinton has said maintained and monitored her server was Bryan Pagliano, who had worked as the technology chief for her political action committee and her presidential campaign. It is not clear whether he had any help. Pagliano had also provided computer services to the Clinton family. In 2008, he received more than $5,000 for that work, according to financial disclosure statements he filed with the government.

In May 2009, with Kennedy’s help, Pagliano landed a job as a political employee in the State Department’s IT division, documents and interviews show. It was an unusual arrangement.

At the same time, Pagliano apparently agreed to maintain the basement server. Officials in the IT division have told investigators they could not recall previously hiring a political appointee. Three of Pagliano’s supervisors also told investigators they had no idea that Clinton used the basement server or that Pagliano was moonlighting on it.

Through an attorney, Pagliano declined a request from The Post for an interview. He also refused a request from the Senate Judiciary and Homeland Security and Governmental Affairs committees to discuss his role. On Sept. 1, 2015, his attorney told the committees that he would invoke his Fifth Amendment rights if any attempt was made to compel his testimony. He was later given immunity by the Justice Department in exchange for his cooperation, according to articles in the New York Times and The Post.

In a statement, Clinton’s campaign said the server was protected but declined to provide technical details. Clinton officials have said that server logs given to authorities show no signs of hacking.

“The security and integrity of her family’s electronic communications was taken seriously from the onset when it was first set up for President Clinton’s team,” the statement said. “Suffice it to say, robust protections were put in place and additional upgrades and techniques employed over time as they became available, including consulting and employing third party experts.”

The statement added that “there is no evidence there was ever a breach.”

The number of emails moving through the basement system increased quickly as Hillary Clinton dove into the endless details of her globetrotting job. There were 62,320 in all, an average of 296 a week, nearly 1,300 a month, according to numbers Clinton later reported to the State Department. About half of them were work-related.

Her most frequent correspondent was Mills, her chief of staff, who sent thousands of notes. Next came Abedin, the deputy chief of staff, and Jacob Sullivan, also a deputy chief of staff, according to a tally by The Post.

Clinton used hdr22@clintonemail.com as her address, making it immediately apparent that the emails were not coming from or going to a government address.

Most of her emails were routine, including those sent to friends. Some involved the coordination of efforts to bring aid to Haiti by the State Department and her husband’s New York-based Clinton Foundation — notes that mixed government and family business, the emails show.

Others involved classified matters. State Department and Intelligence Community officials have determined that 2,093 email chains contained classified information. Most of the classified emails have been labeled as “confidential,” the lowest level of classification. Clinton herself authored 104 emails that contained classified material, a Post analysis later found.

Before the server received a digital certificate marking the use of standard encryption, Clinton and her aides exchanged notes touching on North Korea, Mexico, Afghanistan, military advisers, CIA operations and a briefing for Obama.

Clinton adviser Philippe Reines wrote a note to her about Afghanistan President Hamid Karzai. Reines started his note by reminding Clinton that Reines’s “close friend Jeremy Bash is now [CIA Director Leon E.] Panetta’s Chief of Staff.” The rest of the note was redacted before release, under grounds that it was national-security-sensitive.

On Sunday, March 29, 2009, just hours before standard encryption on the server began, Sullivan emailed Clinton a draft of a confidential report she was to make to Obama. “Attached is a draft of your Mexico trip report to POTUS,” Sullivan wrote.

In the high-pressure world of diplomacy, the sharing of such material had been a discreet but common practice for many years. Officials who manage problems around the clock require a never-ending flow of incisive information to make timely decisions.

Not all classified material is equally sensitive. Much of it involves discussions about foreign countries or leaders, not intelligence sources and methods. Working with classified materials can be cumbersome and, in the case of low-level classification, annoying.

On Feb. 10, 2010, in an exchange with Sullivan, Clinton vented her frustration one day when she wanted to read a statement regarding José Miguel Insulza, then secretary general of the Organization of American States. Sullivan wrote that he could not send it to her immediately because the department had put it on the classified network.

“It’s a public statement! Just email it,” Clinton shot back, just moments later.

“Trust me, I share your exasperation,” Sullivan wrote. “But until ops converts it to the unclassified email system, there is no physical way for me to email it. I can’t even access it.”

Early on June 17, 2011, Clinton grew impatient as she waited for “talking points” about a sensitive matter that had to be delivered via a secure line.

“They say they’ve had issues sending secure fax. They’re working on it,” Sullivan wrote his boss.

Clinton told him to take a shortcut.

“If they can’t, turn into nonpaper w no identifying heading and send nonsecure,” she said.

Clinton spokesman Fallon said she was not trying to circumvent the classification system.

“What she was asking was that any information that could be transmitted on the unclassified system be transmitted,” he said. “It is wrong to suggest that she was requesting otherwise. The State Department looked into this and confirmed that no classified material was sent through a non-secure fax or email.”

Security remained a constant concern. On June 28, 2011, in response to reports that Gmail accounts of government workers had been targeted by “online adversaries,” a note went out over Clinton’s name urging department employees to “avoid conducting official Department business from your personal email accounts.”

But she herself ignored the warning and continued using her BlackBerry and the basement server.

In December 2012, near the end of Clinton’s tenure, a nonprofit group called Citizens for Responsibility and Ethics in Washington, or CREW, filed a FOIA request seeking records about her email. CREW received a response in May 2013: “no records responsive to your request were located.”

Other requests for Clinton records met the same fate — until the State Department received a demand from the newly formed House Select Committee on Benghazi in July 2014. The committee wanted Clinton’s email, among other things, to see what she and others knew about the deadly attack in Libya and the response by the U.S. government.

Officials in the department’s congressional affairs office found some Clinton email and saw that she had relied on the private domain, not the department’s system.

Secretary of State John F. Kerry resolved to round up the Clinton emails and deliver them to Congress as quickly as possible. Department officials reached out to Clinton informally in the summer of 2014. On Oct. 28, 2014, the department contacted Clinton and the offices of three other former secretaries — Madeleine K. Albright, Condoleezza Rice and Colin L. Powell — asking if they had any email or other federal records in their possession.

Albright and Rice said they did not use email while at State. Powell, secretary of state from 2001 to 2005, had a private email account through America Online but did not retain copies of his emails. The inspector general for the State Department found that Powell’s personal email account had received two emails from staff that contained “national security information classified at the Secret or Confidential levels.”

Clinton lawyer David Kendall later told the State Department that her “use of personal email was consistent with the practices of other Secretaries of State,” citing Powell in particular, according to a letter he wrote in August.

But Powell’s circumstances also differed from Clinton’s in notable ways. Powell had a phone line installed in his office solely to link to his private account, which he generally used for personal or non-classified communication. At the time, he was pushing the department to embrace the Internet era and wanted to set an example.

“I performed a little test whenever I visited an embassy: I’d dive into the first open office I could find (sometimes it was the ambassador’s office). If the computer was on, I’d try to get into my private email account,” Powell wrote in “It Worked for Me: In Life and Leadership.” “If I could, they passed.”

Powell conducted virtually all of his classified communications on paper or over a State Department computer installed on his desk that was reserved for classified information, according to interviews. Clinton never had such a desktop or a classified email account, according to the State Department.

On Dec. 5, 2014, Clinton lawyers delivered 12 file boxes filled with printed paper containing more than 30,000 emails. Clinton withheld almost 32,000 emails deemed to be of a personal nature.

The department began releasing the emails last May, starting with some 296 emails requested by the Benghazi committee. In reviewing those emails, intelligence officials realized that some contained classified material.

Clinton and her campaign have offered various responses to questions about the classifications. At first, she flat-out denied that her server ever held any. “There is no classified material,” she said at a March 10, 2015, news conference.

Her campaign later released a statement saying she could not have known whether material was classified, because it was not labeled as such. “No information in Clinton’s emails was marked classified at the time she sent or received them,” the statement said.

Clinton has also suggested that many of the emails were classified as a formality only because they were being prepared for release under a FOIA request. Her campaign has said that much of the classified material — in emails sent by more than 300 individuals — came from newspaper accounts and other public sources.

“What you are talking about is retroactive classification,” she said during a recent debate. “And I think what we have got here is a case of overclassification.” Her statement appears to conflict with a report to Congress last year by inspectors general from the State Department and the group of spy agencies known as the Intelligence Community. They made their report after the discovery that four emails, from a sample of 40 that went through her server, contained classified information.

“These emails were not retro­actively classified by the State Department,” the report said. “Rather these emails contained classified information when they were generated and, according to IC classification officials, that information remains classified today. This classified information should never have been transmitted via an unclassified personal system.”

One of those four emails has since been declassified and released publicly by the State Department. The department has questioned the classification of another of those emails.

Twenty-two emails discovered later were deemed so highly classified that they were withheld in their entirety from public release. “They are on their face sensitive and obviously classified,” Rep. Chris Stewart (R-Utah), a member of the House Permanent Select Committee on Intelligence, told The Post. “This information should have been maintained in the most secure, classified, top-secret servers.”

Fallon pointed out that none of those emails originated with Clinton, something that he said Dianne Feinstein (D-Calif.), the Senate Select Intelligence Committee vice chairman, has noted. “We strongly disagree with the decision to withhold these emails in full,” he said.

Under Title 18, Section 1924, of federal law, it is a misdemeanor punishable by fines and imprisonment for a federal employee to knowingly remove classified information “without authority and with the intent to retain such documents or materials at an unauthorized location.”

Previous cases brought under the law have required proof of an intent to mishandle classified information, a high hurdle in the Clinton case. The basement server also put Clinton at risk of violating laws and regulations aimed at protecting and preserving government records.

In a statement, Clinton’s campaign said she had received “guidance regarding the need to preserve federal records” and followed those rules. “It was her practice to email government employees on their ‘.gov’ email address. That way, work emails would be immediately captured and preserved in government ­record-keeping systems,” the statement said.

Fallon said that “over 90 percent” of the more than 30,000 work-related emails “were to or from government email accounts.”

Specialists interviewed by The Post said her practices fell short of what laws and regulations mandated. Some of those obligations were spelled out a few months before Clinton took office in National Archives and Records Administration Bulletin 2008-05, which said every email system was supposed to “permit easy and timely retrieval” of the records.

The secretary of state’s work emails are supposed to be preserved permanently. In addition, rules also mandated that permanent records are to be sent to the department’s Records Service Center “at the end of the Secretary’s tenure or sooner if necessary” for safekeeping.

Under Title 18, Section 2071, it is a misdemeanor to take federal records without authorization, something that is sometimes referred to as the “alienation” of records. The law is rarely enforced, but a conviction can carry a fine or imprisonment.

Jason R. Baron, a former director of litigation at the National Archives and Records Administration, told the Senate Judiciary Committee last year he believed that Clinton’s server ran afoul of the rules. In a memo to the committee, Baron wrote that “the setting up of and maintaining a private email network as the sole means to conduct official business by email, coupled with the failure to timely return email records into government custody, amounts to actions plainly inconsistent with the federal recordkeeping laws.”

On May 19, 2015, in response to a FOIA lawsuit from the media organization Vice News, U.S. District Judge Rudolph Contreras ordered all the email to be released in stages, with re­dactions.

One notable email was sent in August 2011. Stephen Mull, then serving as the department’s executive secretary, emailed Abedin, Mills and Kennedy about getting a government-issued BlackBerry linked to a government server for Clinton.

“We are working to provide the Secretary per her request a Department issued Blackberry to replace personal unit, which is malfunctioning (possibly because of her personal email server is down.) We will prepare two version for her to use — one with an operating State Department email account (which would mask her identity, but which would also be subject to FOIA requests).”

Abedin responded decisively.

“Steve — let’s discuss the state blackberry. doesn’t make a whole lot of sense.”

Fallon said the email showed that the secretary’s staff “opposed the idea of her identity being masked.”

Last month, in a hearing about a Judicial Watch lawsuit, U.S. District Judge Sullivan cited that email as part of the reason he ordered the State Department produce records related to its initial failures in the FOIA searches for Clinton’s records.

Speaking in open court, Sullivan said legitimate questions have been raised about whether Clinton’s staff was trying to help her to sidestep FOIA.

“We’re talking about a Cabinet-level official who was accommodated by the government for reasons unknown to the public. And I think that’s a fair statement: For reasons heretofore unknown to the public. And all the public can do is speculate,” he said, adding: “This is all about the public’s right to know.”

 

https://www.washingtonpost.com/investigations/how-clintons-email-scandal-took-root/2016/03/27/ee301168-e162-11e5-846c-10191d1fc4ec_story.html

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The Pronk Pops Show 647, March 29, 2016, Story 1: Obama Administration and Democrats Stonewalling Handling of Over 2,000 Confidential, Secret, Top Secret and Special Access Program (SAP) Documents By Hillary Clinton Compromising National Security — 147 FBI Agents Working on Hillary Clinton’s Email Investigation — Indict and Prosecute Clinton — Obama Will Pardon Clinton — Donald Trump defends Campaign Manager Corey Lewandowski — Clinton Verdict: Quilty — Lewandowski Vertict: Not Quilty — Videos

Posted on March 29, 2016. Filed under: 2016 Presidential Campaign, 2016 Presidential Candidates, American History, Benghazi, Blogroll, Breaking News, Communications, Computers, Constitutional Law, Employment, Fast and Furious, Foreign Policy,