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Showing posts with label Smuggling. Show all posts
Showing posts with label Smuggling. Show all posts

Monday, July 11, 2011

Asia: Heirs and spares

Interesting article from the Financial Times:
Asia: Heirs and spares
Financial Times, 11:14pm Sunday 10th July 2011

By Amy Kazmin, Patti Waldmeir and Girija Shivakumar

The political, economic and social consequences of a preference for sons – and an attendant shortage of girls – is alarming policymakers
In the Indian farming village of Medina, 200km from Delhi, the narrow lanes are clogged with high-end sport utility vehicles, reflecting the prosperity brought by rising land values to this traditional community. In their mud-floored homes, residents display flatscreen televisions, refrigerators and other modern conveniences.
But Medina’s families are also using their new wealth to acquire a scarce local commodity: teenage girls to act as wives for the community’s growing cohorts of unmarried men.

Read the full article at: http://on.ft.com/o8nrCy

Sent from my iPad

Saturday, October 2, 2010

Welcome to the Mania!

Welcome to the Mania!

Submitted by Jeff Clark of Casey Research

With gold punching the $1,300 mark, thoughts of what a gold mania will be like crossed my mind. If we're right about the future of precious metals, a gold rush of historic proportions lies ahead of us. Have you thought about how a mania might affect you? Not like this, you haven't…

You log on to your brokerage account for the third time that day and see your precious metal portfolio has doubled from last week. Gold and silver stocks have been screaming upward for weeks. Everyone around you is panicking from runaway inflation and desperate to get their hands on any form of gold or silver. It's exhilarating and frightening in the same breath. Welcome to the mania.

Daily gains of 20% in gold and silver producers become common, even expected. Valuations have been thrown out the window – this is no time for models and charts and analysis. It's not greed; it's survival. Get what you can, while you can. Investors clamor to buy any stock with the word "gold" in its title. Fear of being left behind is palpable.

The shares of junior exploration companies have gone ballistic. They double and triple in days, then double and triple again. Many have already risen ten-fold. You have several up 10,000%. No end is in sight. Your portfolio swells bigger every day. Your life is changing right in front of you at warp speed.

Every business program touts the latest hot gold or silver stock. It's all they can talk about. Headlines blare anything about precious metals, no matter how trivial. Weekly news magazines and talk-radio hosts dispense free stock picks. CNBC and Bloomberg battle to be first with the latest news. Each tick in the price of gold and silver flashes on screen, and interruptions offering the latest prediction seem to happen every fifteen minutes. Breathy reporters yell above the noise on the trade floor about insane volume, and computers that can't keep up. Entire programs are devoted to predicting the next winner. You watch to see if some of your stocks are named. You can't help it.

The only thing growing faster than your portfolio is the number of new "gold experts." It's a bull market in bull.

You can feel the crazed mass psychology all around you. Your co-workers know you bought gold some time ago and pepper you with questions seemingly every hour, interrupting your work. They ask if you heard about the latest pick from Fox Business. They want to know where you buy gold, who has the best price, and, by the way, how do I know if my gold is real? They all look at you differently now. Women smile at you in the hallway. You worry someone may follow you home.

Your relatives once teased you but now hound you with questions at family get-togethers – what stocks do you own? What's that gold newsletter telling you? Where can I keep my bullion? You don't want to be the life of the party, but they force it – it's all anyone wants to talk about. Your brother tells you he dumped his broker and is trading full-time. Another relative shoves his account statement in front of you and wants advice. You sense someone will ask for a loan. You don't know what to tell people. The attention is discomforting, and you feel the urge to escape.

At first it was exciting, then breathtaking. Now it's scary. You're drowning in obscene profits but are becoming increasingly anxious about how long it can last. Worry replaces excitement. You don't know if you should sell or hold on. Nobody knows what to do. But the next day, your portfolio screams higher and you feel overwhelmed once again.

You grab the local paper and read the town's bullion shop had a break-in last night. They hired a security company and have posted several guards outside and inside the store. Premiums have skyrocketed, but lines still form every day. The proprietor hands out tickets when locals arrive: your number will be called when it's your turn… the wait will be long… please have your order ready… yesterday we ran out of stock at 11am.

You begin to worry about the security of your own stash of bullion – those clever hiding spots don't feel quite as secure as you first thought they'd be. Is the bank safe deposit box really secure? Shouldn't they hire a security guard? Should I move some of it elsewhere? Is there anywhere truly safe? You find yourself checking gun prices online.

And it's all happening because the dollar is crashing and inflation has scourged every part of life. You curse at those who said this couldn't happen and mock past assurances from government. Cash is a hot potato, and spending it before it loses more purchasing power is a daily priority. Everyone is clamoring to get something that can't lose value, but mostly gold and silver.

Your wife calls and says the $100 you gave her that morning isn't enough to buy groceries for dinner. Prices change often on everything. She urges you to get some bread and milk before the stores raises the price again. You suddenly remember you're low on gas and make plans to leave work early to beat others to the filling station. Restaurants and small businesses post prices on a chalkboard and update them throughout the day. Employers scramble to work out an "inflation adjustment" for salaries. 

On your way home, the radio broadcaster reports the government has convened an emergency summit of all heads of state. They're working urgently on the problem, and all other agendas have been tabled. Outside experts have been called in. We're going to solve this rampant flood of inflation for the American people, they say. In your gut you know there's nothing they can do.

You change the channel and hear about the spike in arrests of U.S. citizens at the Canadian border. Scads of people are caught trying to sneak bullion and stock certificates out of the country – from airports to rail stations. Violence at borders has escalated, and stories of bloodshed are getting common. The White House ordered heightened security at all U.S. borders, with the media reporting it can take days to cross. Foreign governments offer meaningless help, others mock U.S. leaders for their shortsightedness. Their countries are suffering, too.

You think about the gains in your portfolio and wince at the taxes you'll pay when you sell. Nothing has been indexed to inflation, so everyone has been pushed into higher tax brackets. Citizens are furious with government. Agencies have been swarmed with bitter taxpayers and revolting benefit recipients. One government office was set on fire. A riot erupted in Washington, D.C. last week and martial law was temporarily declared. It's too dangerous to travel anywhere.

As crazy as things are, it's hard not to smile. You're in the middle of a mania. Your life has changed permanently. You're part of the new rich. You can quit work, live off your investments. Your wife is ecstatic, and you both feel as if it's your second honeymoon. Your kids are amazed and gaze at you with the same awe they did when they were children.

You're thankful you bought gold and silver before the mania, along with precious metal stocks. You daydream of where you might go, what you might buy. New options open up daily. You realize you'll need to meet with your accountant, maybe hire a second one to protect your sudden wealth. You wonder what you'll invest in next. You ponder what charities are worthwhile. Better meet with the attorney to redraft the will.

As night settles and your house quiets, you log on to your brokerage account one last time. Even though you're ready for it, your mouth drops when you see your account balance. It is truly overwhelming. You think of others who own gold and silver stocks and wonder if any have sold yet. Has Doug Casey exited?

You stare at the blinking screen, hand on the mouse, the cursor hovering on the sell button…
View article...

Saturday, August 28, 2010

Egypt intercepts shipment of 190 anti-aircraft missiles


Egypt intercepts shipment of 190 anti-aircraft missiles
By JPOST.COM STAFF
28/08/2010
Authorities uncover large weapons cache hidden in Sinai, reportedly destined for smuggling into Gaza; more ammunition and explosives seized in Rafah.
Egyptian authorities intercepted a shipment of at least 190 anti-aircraft missiles in Sinai probably destined for Gaza on Saturday, Palestinian news Agency Maan reported.

According to the report, the Egyptian police raided several storage areas in the area and discovered the secret cache hidden in a remote region in the center of the peninsula.

RELATED:
IAF targets smuggling tunnels in Gaza
Hamas reopens smuggling tunnels

In addition to the anti-aircraft missiles, rockets and other ammunition were seized, as well as a large supply of illegal drugs.



Reports also stated that authorities raided several locations in Rafah, where they found more stores of explosives and weapons.

Earlier on Saturday Kuwaiti newspaper Alrai reported that Syria's military is on high alert for an Israeli attack on Hizbullah weapons depots located in the country.

Israel and Egypt have maintained a tough blockade of Gaza since Hamas seized power in June 2007, and the hundreds of tunnels in the Rafah area are the main entry point for many basic items, as well as weapons.

The Gaza-Egypt border sits at the northeastern tip of Sinai.

At the beginning of August, the Israeli Air Force struck a tunnel used to smuggle weapons into the Gaza Strip as a retaliation for a Kassam rocket fired into Israel which struck near Sderot.

Egypt intercepts shipment of 190 anti-aircraft missiles

Wednesday, July 21, 2010

Sub-Saharan Africa economy: Strategic rise ViewsWire

Sub-Saharan Africa economy: Strategic rise
FROM THE ECONOMIST INTELLIGENCE UNIT
July 13th 2010

Rising global competition for commodities is giving a new strategic importance to resource-rich Sub-Saharan Africa. China and other emerging industrialised countries are vying with the subcontinent's former colonial powers to acquire long-term stakes in mines, oilfields and other commodity assets. With unprecedented volumes of investment on offer, the stakes are high not only for resource companies seeking to expand in Africa but also for the region itself. The challenge for African governments will be to manage their commodities better to avoid a repeat of the boom-and-bust years of the 1970s-90s.

Natural resources are hardly a new story for Sub-Saharan Africa. For decades the region has depended on exports of commoditiesóoil, hard minerals and cash cropsóto fund economic growth, though often with disappointing results. The collapse in commodity prices in the late 1970s and the mismanagement of revenue inflows resulted in weak growth and rising poverty, cementing the belief that Africa's dependence on commodities retarded its economic development. However, soaring emerging-market demand for commodities in recent years, coupled with the increasing scarcity of hydrocarbons and hard minerals, has changed the picture. Sub-Saharan Africa has become a prime target for adventurous foreign investorsówith Chinese companies playing a particularly prominent roleówith the result that the subcontinent once again has the opportunity to benefit from its natural wealth.

Sub-Saharan Africa is one of the most commodity-rich regions of the planet. The subcontinent contains the majority of known reserves of many key minerals, including 90% of the world's platinum-group metals, 90% of the world's chromium, two-thirds of the world's manganese, and 60% of its diamonds. It contains 60% of the world's phosphates, 50% of the world's vanadium, and 40-50% of the world's gold. Sub-Saharan Africa also boasts one-third of the planet's uranium reserves, one-third of its bauxite, and 10% of all oil reserves (the bulk of which are concentrated in the Gulf of Guinea in West Africa).

Most of these resources are underexploited. Uneven development has resulted in a handful of countries dominating commodity exports. The most important by far, both in terms of the diversity of its commodity base and the volume of its exports, is South Africa. The subcontinent's other commodity giant is the Democratic Republic of Congo, which sits on over half of the world's cobalt reserves and 25% of its diamonds, as well as having large quantities of rare metals such as coltan (used in mobile phones). Nigeria and Angola dominate oil production. However, other countries are starting to develop their commodity resources, and several are set to become major producers in the near future. They include Guinea and Angola (iron ore), Ghana (hydrocarbons), and Guinea-Bissau (bauxite and phosphates).

Sub-Saharan Africa also boasts a large agricultural sector. Much of this focused on the production of cash crops for export to the West during the colonial period and in the first years after independence. Since the late 1970s Africa has lost global importance as an exporter of many cash crops. The main exceptions have been coffee, cocoa and tea, for which CÙte d'Ivoire, Ghana, Uganda and Kenya remain key global producers, and more specialised crops like cashew nuts (Guinea-Bissau) and vanilla (Madagascar). However, increased competition from Asian and Latin American producers, coupled with a decline in Africa's terms of trade, has eroded profitability. Africa also continues to export large quantities of timber, particularly to China, but poor forestry management is threatening the sector's sustainability.

A scramble for access

Major emerging markets are playing a key role in the development of the region's commodities sector. Since the early 2000s China has invested heavily in African commodities, reflecting the two-pronged strategy of China's state-owned oil and mining companies: first, acquiring access to reserves through long-term contracts; and second, purchasing stakes in local ventures whenever possible. According to the Chinese government, by end-2008 total Chinese investment in Sub-Saharan Africa amounted to US$26bn, including stakes in oil and gas concessions in Sudan and the Gulf of Guinea, copper mines in Zambia, iron concessions in Gabon, and ferrochrome and platinum mines in South Africa.

China is not the only player around. Chinese interest is increasingly being matched by investment from Indian or Indian-linked firms, notably the steel manufacturing giants Tata Steel and ArcelorMittal, which are acquiring stakes in large coal concessions in Mozambique. Brazil is also stepping up its investment. Given the expertise of Brazilian companies in construction, engineering and the oil sector, it is likely that these firms will provide stiff competition for contracts in the next phase of Africa's infrastructure expansion.

Competition looks set to be particularly intense in the Gulf of Guinea, which continues to grow in strategic importance thanks to the steady increase in its proven oil reserves (a result of better deep-water drilling technology). The region is already the focus of military co-operation programmes between African governments and the US, EU and China. Tensions between these powers could increase as each seeks to establish a foothold in the region. Such a situation could prove advantageous to countries in the Gulf of Guinea if they are able to play off competing powers against each other. However, past experience indicates that such competition and strategic alliances can be used to prop up unsavoury regimes. This also poses potential difficulties for foreign investors. China is learning the hard way that its resource grabs can expose it to reputational risks over human-rights and environmental abuses.

Reaping the benefits?

There are plenty of other challenges. The region exports a lot of its commodities in unprocessed form, thus missing the chance to add value to them. For example, Guinea-Bissau exports its entire cashew crop (over 90% of the country's exports) to India for processing. The creation of low-tech processing operations could capture more of the value of the crop, as well as creating significant numbers of jobs. However, efforts to develop processing industries in Africa have proved disappointing owing to the constraints of the business environment, poor management and competition from processors in India and China.

Broader challenges include managing capital inflows better and maximising the economic benefits of foreign investments. Progress is occurring, with improved local-content provisions in mining contracts, the imposition of tighter environmental standards and greater transparency over commodity revenues. However, greater efforts are needed. African governments must ensure that infrastructure development does not just support the exploitation and export of minerals but also facilitates trade and the movement of people and goods. Local workforces must be trained in new skills and not just used for manual labour. A large proportion of oil and mineral revenues need to be held outside the countries in question in order to prevent currency appreciation that could render other industries uncompetitive.

If African governments can realise these aims, there is a good chance that the subcontinent's natural-resource endowment could provide major benefits to the population. Otherwise, the next wave of commodity development will merely entrench poor governance and corruption and further stifle economic development.

The Economist Intelligence Unit
Source: Global Forecasting Service

© 2010 The Economist Intelligence Unit Limited. An Economist Group business. All rights reserved.

Sub-Saharan Africa economy: Strategic rise Sub-Saharan Africa economy: Strategic rise ViewsWire
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Wednesday, June 2, 2010

Our World: Ending Israel's losing streak





Our World: Ending Israel's losing streak 

By CAROLINE B. GLICK

01/06/2010

A straight line runs from the anti-Israel UN resolution passed last Friday and the Hamas flotilla. 
These words are being written before the dust has settled on Monday morning’s naval commando raid on the Gaza-bound Turkish flotilla of terror supporters. The raid’s full range of operational failures still cannot be known. Obviously the fact that the mission ended with at least six soldiers wounded and at least 10 Hamas supporters dead makes clear that there were significant failures in both the IDF’s training for and execution of the mission.

The navy and other relevant bodies will no doubt study these failures. But they point to a larger strategic failure that has crippled the country’s capacity to contend with the information war being waged against it. Until this failure is remedied, no after-action investigation, no enhanced training, no new electronic warfare doodad will make a significant impact on Israel’s ability to contend with the next Hamas flotilla.

IN THE space of four days, the country has suffered two massive defeats. A straight line runs between the anti-Israel resolution passed last Friday at the UN’s Nuclear Nonproliferation Treaty Review Conference and the Hamas flotilla. And in both cases, officials voiced “surprise” at these defeats.

Given the months-long build-up to the NPT review conference, and the weeks-long build-up to the Turkish-Hamas flotilla, that surprise cannot be attributed to a lack of information. What it points to, rather, is a cognitive failure of our leaders to understand the nature of the war being waged against us. And it is this fundamental failure of cognition that has landed six soldiers in the hospital, the nation’s international reputation in tatters and its spokesmen searching for a way to describe a reality they do not understand.

The reality is simple and stark. Israel is the target of a massive information war, unprecedented in scale and scope. This war is being waged primarily by a massive consortium of the international Left and the Arab and Islamic worlds. The staggering scale of the forces aligned against us is demonstrated by two things.

The Hamas abetting Free Gaza Web site published a list of some 222 organizations that endorsed the terror-supporting flotilla. The listed organizations from the four corners of the earth include Jewish anti-Israel groups as well as Christian, Islamic and nonreligious anti-Israel groups. It is hard to think of any cause other than Israel-bashing that could unite such disparate forces.

The second indicator of the scope of the war is far more devastating than the list of groups that endorsed the pro-Hamas flotilla. That indicator is the fact that at the UN on Friday, 189 governments came together as one to savage Israel. There is no other issue that commands such unanimity. The NPT review conference demonstrated that the only way the international community will agree on anything is if its members are agreeing that Israel has no right to defend itself. The conference’s campaign against Israel shows that the 222 organizations supporting Hamas are a reflection of the will of the majority of the nations of the world.

This war is nothing new. It has been going on since the dawn of modern Zionism 150 years ago. In many ways, it is just the current iteration of the eternal war against the Jewish people.

The red-green alliance’s aims are twofold. It seeks to delegitimize Israel’s right to exist and it seeks to make it impossible for Israel to defend itself. If these aims are met, Israel’s destruction will become an inevitability.

UNTIL US President Barack Obama took office, Israel’s one steady asset in this war was the US. Until last year, the US consistently refused to join the red-green alliance because its leaders recognized that the alliance’s campaign was part and parcel of its campaign against US superpower status. Indeed, some US leaders recognized that the alliance’s animus toward Israel stemmed from the same source as its rejection of American exceptionalism.

Dismally, what the US’s vote in favor of the NPT review conference’s final anti-Israel (and by default pro-Iranian) resolution makes clear is that under Obama, the US is no longer Israel’s reliable ally. Indeed, what the US’s vote shows is that the Obama administration’s ideological preferences place it on the side of the red-green alliance. No amount of backpedalling by the Obama administration can make up the damage caused by its act of belligerence.

If Israel’s leaders were better informed, they would have recognized a number of things in the lead-up to the conference. They would have realized that Obama’s anti-nuclear conference in April, his commitment to a nuclear-free world, as well as his general ambivalence – at best – to US global leadership rendered it all but inevitable that he would turn on Israel. The truth is that Egypt’s call for the denuclearization of Israel jibes with Obama’s own repeatedly statedviews both regarding Israel and the US’s own nuclear arsenal. Armed with this basic understanding of Obama’s inclinations, Israel should have taken for granted that the NPT conference would target it. Consequently, in months preceding the conference, it should have stated loudly and consistently that as currently constituted, the NPT serves as the chief enabler of nuclear proliferation rather than the central instrument for preventing nuclear proliferation. North Korea exploited its status as an NPT signatory to develop its nuclear arsenal. Today Iran exploits its status as an NPT signatory to develop nuclear weapons. Unless the NPT is fundamentally revised, it will continue to serve as the primary instrument for nuclear proliferation.

Had this been Israel’s position, it would have been able to undercut US arguments in favor of signing onto the final resolution. So too, such a position would have prepared Israel to cogently explain its rejection of the final resolution.

And that is the thing of it. The red-green alliance’s aim at the NPT conference was to discredit Israel’s deterrent capacity while delegitimizing its right to take preemptive action against Iran. Now, due to Israel’s failure to make its case against the NPT in the months leading up to the conference, as our enemies use the US-supported final resolution to claim that our opposition to Iran’s nuclear weapons program is hypocritical, we lack a cognitive framework for responding.

The fact that the government still doesn’t get the point is made clear by its response to the decision. Its denunciation of the resolution makes no mention of the fact that the NPT regime itself has become the chief enabler of nuclear proliferation. So too, disastrously, in a clear bid to pretend away Obama’s treachery, Israel actually applauded him for emptily criticizing the resolution he voted for. This response compounds the damage and ensures that the assault will continue.

AS TO the flotilla, the challenge it presented was nothing new. Israel has been confronted by suicide protesters for a decade now. The fact that these pro-Hamas activists intended to commit suicide to discredit Israel on camera was made clear by the fact that the Turkish organizers named the lead ship Rachel Corrie.

So too, the fact that IDF forces boarding the ships would be met by trenchant, violent opposition was knowable simply by looking at Turkey’s role in the operation. First of all, the Turkish government-supported NGO behind the operation is IHH. As the US government, the Turkish government in the 1990s, the Investigative Project on Terrorism and countless other sources have proven, IHH is a terrorist organization with direct links to al-Qaida and Hamas. Its members have been involved in terrorist warfare from Chechnya and Bosnia to Iraq and Israel. The notion that IHH organizers would behave like radical leftist anti-Israel demonstrators on university campuses is simply ridiculous.






Moreover, there is Turkey’s behavior to consider. Since Obama took office, Turkey’s gradual slide into the Iranian axis has sped up considerably. Turkey’s leading role in the flotilla, and the Erdogan government’s ostentatious embrace of IHH – which just a decade ago Turkey banned from earthquake relief efforts in light of its violent, jihadist mission – made clear that the Erdogan regime would use any violence on board the ships as a way to strike a strategic blow at Israel’s international standing.

In view of all of this, it is clear that the information strategy for contending with the flotilla was ill-conceived. Rather than attack Turkey for its facilitation of terrorism, and openly prepare charge sheets against the flotilla’s organizers, crew and passengers for their facilitation of terrorism in breach of both domestic law and international law, the information efforts were largely concentrated on irrelevancies. Officials detailed all the humanitarian assistance Israel has provided Hamas-controlled Gaza. They spoke of the navy’s commitment to use nonlethal force to take over the ships.

And now, in the aftermath of the lethal takeover of the flotilla, Israel’s leaders stammer. Rather than demand an apology from the Turkish government for its support for these terrorists, Defense Minister Ehud Barak called his Turkish counterpart to talk over what happened. Rather than demand restitution for the terrorist assault against IDF troops, Israel has defended its troops’ training in nonviolent crowd control.

These efforts are worse than worthless; they
make Israel appear whiny rather than indignant. And more depressingly, they expose a dangerous lack of comprehension about what has just occurred, and a concomitant inability to prepare for what will most certainly follow.

Israel is the target of a massive information war. For it to win this war, it needs to counter its enemies’ lies with the truth.

The NPT has been subverted by the very forces it was created to prevent from acquiring nuclear weapons.

Hamas is a genocidal terrorist organization ideologically indistinguishable from al-Qaida. International law requires all states and non-state actors to take active measures to defeat it.

Israel is the frontline of the free world. Its ability to defend itself and deter its foes is the single most important guarantee of international peace. A strong Israel is also the most potent and reliable guarantor of the US’s continued ability to project its power in the Middle East.

This is the unvarnished truth. It is also the beginning of a successful campaign to defang the massive coalition of nuclear proliferation- and terrorism-abettors aligned against Israel. But until our leaders finally recognize the nature of the war being waged against our country, these basic facts will remain ignored as we move from one stunning defeat to the next.

caroline@carolineglick.com

www.CarolineGlick.com



Our World: Ending Israel's losing streak




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Sunday, May 30, 2010

Tantalum Investing News » Tantalum: Congo Conflict Mineral » Print


Tantalum: Congo Conflict Mineral
February 12, 2010 @ 10:43 am In Feature Articles, Tantalum Articles
congo
[1]



By Melissa Pistilli—Exclusive to Tantalum Investing News [2]

Most people today are familiar with the term “blood diamond [3]” and the gruesome reality the name invokes. Global pushback against the trade in conflict diamonds from regions steeped in brutal slavery and guerrilla warfare led to the adoption of the Kimberley Process [4]by those in the industry and in the global community actively trying to block sales of diamonds used to finance war.
Blood diamonds are just one story in a long history of violence linked with the exploitation of people and resources that has plagued humankind for millenniums.
Another example of this shameful side of human nature is taking place today in the Democratic Republic of the Congo (DR Congo). The minerals involved include gold, tin, tungsten and tantalum, which are used to fund murderous militias caught up in a war between two peoples that has spilled over the borders from Congo’s neighbours.
Congo Conflict Background
The 1994 Rwandan genocide [5] was the catalyst that pushed Zaire, later to be renamed DR Congo, into the deadliest conflict since WWII. After the overthrow of the Hutu regime in neigbouring Rwanda, over two million Hutus, including many of the militiamen who committed numerous atrocities, flooded over the borders of eastern Zaire to escape possible retribution from the Tutsi.
The fleeing Hutu militia members found allies with Mobutu’s government and soon began violently persecuting the Zaire’s Tutsi population. Of course, Rwanda’s new Tutsi government provided support for Tutsi militias in Zaire fighting the Hutu and Mobutu’s troops. The Tutsi also formed alliance with other Ugandan-backed groups and managed to overthrow Mobutu. It was then that Zaire became DR Congo.
However, the newly installed president Laurent Kabila was soon ousted by Rwanda after he failed to throw out the Hutu militia. Kabila sought the aid of Angola, Namibia and Zimbabwe and the region fell into a bloody five-year war known as the Second Congo War [6] in which over five million Africans perished.
The war supposedly ended in 2003, however the region of eastern DR Congo is still under its shadow. General Laurent Nkunda, a Tutsi warlord believed to have the backing of Rwanda had been set on eradicating the area of any Hutu members of the Democratic Forces for the Liberation of Rwanda (FDLR), who he claimed the DR Congo government was supporting.
In late 2008, Rwanda and DR Congo forces came together to fight the FDLR in North and South Kivu provinces and General Nkunda was exiled to Rwanda [7] where he lives under house arrest. Unfortunately, the move did not pay off and gruesome large-scale murders and rapes are still occurring at the hands of both rebels and government troops even with the area supposedly under UN peacekeeping operations.
Conflict Minerals in the Global Marketplace
Natural resources like tin, tungsten and tantalum have been branded with the moniker “conflict minerals [8]” because the militias enslave locals to mine the metals and then use the funds garnered from their sale to help finance their bloody operations.
Sadly, it’s become apparent that even the Congolese army is taking part in the exploitation. Several thousand of the army soldiers are actually former rebels once under the command of General Nkunda and are seeking to establish their control over the region’s mineral resources.
“They didn’t integrate into the army, they took it over and now control huge parts of [the region],” says an anonymous former diplomat [9].
Once extracted, the conflict minerals are then taken to trading houses where they are prepared for sale in the global market and purchased by companies willing to ignore the illegal and inhumane way the ore was procured. Eventually, the processed ore makes its way into everyday items we Westerners often take for granted like cell phones, handheld gaming devices, and laptop computers.
Rising Backlash and Organizations Taking Action
According to Global Witness [9], “the illicit exploitation of natural resources in [Congo], and the accompanying serious human rights abuses, would not have taken place on such a large scale if there had not been customers willing to trade in these resources.”
Concerned organizations like the Enough Project [10], created by the Center for American Progress [11], and Global Witness [12], who helped bring the blood diamond controversy to global attention, along with the United Nations and other governmental agencies are bringing increasing pressure on those in the tantalum industry to ensure consumer products become conflict mineral free.
In later commentaries we’ll discuss the specific efforts these organizations are making towards creating a global marketplace free of conflict minerals, what these efforts mean for the future of the tantalum industry and what ethical investing opportunities exist in this sector of the mineral resource market.

Article printed from Tantalum Investing News: http://tantaluminvestingnews.com
URL to article: http://tantaluminvestingnews.com/2010/02/12/tantalum-congo-conflict-mineral/
URLs in this post:
[1] Image: http://tantaluminvestingnews.com/files/2010/02/congo.jpg
[2] Tantalum Investing News: http://tantaluminvestingnews.com/
[3] blood diamond: http://en.wikipedia.org/wiki/Blood_diamond
[4] Kimberley Process: http://en.wikipedia.org/wiki/Kimberley_Process
[5] 1994 Rwandan genocide: http://en.wikipedia.org/wiki/1994_Rwandan_Genocide
[6] Second Congo War: http://en.wikipedia.org/wiki/Second_Congo_War
[7] exiled to Rwanda: http://news.bbc.co.uk/2/hi/7846339.stm
[8] conflict minerals: http://www.smh.com.au/news/technology/out-of-africa-the-blood-tantalum-in-your-mobile-phone/2009/05/08/1241289162634.html
[9] anonymous former diplomat: http://www.globalpost.com/dispatch/kenya/100118/congo-conflict-minerals-mining
[10] Enough Project: http://www.enoughproject.org/
[11] Center for American Progress: http://tantaluminvestingnews.com/wp-includes/js/tinymce/plugins/paste/v
[12] Global Witness: http://www.globalwitness.org/Copyright © 2010 Tantalum Investing News. All rights reserved.

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Tantalum Investing News » Tantalum: Congo Conflict Mineral » Print

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 The MasterBlog

Monday, August 3, 2009

From Choppers with Buds

Few hurdles for Canada smugglers to get choppers

His case illustrates the remarkable ease with which smugglers have obtained flight training and helicopters as they grab a share of Canada's sprawling, multibillion-dollar trade in marijuana, cocaine and MDMA, or Ecstasy.

Of about 10 pilots arrested in roundups of British Columbia-based helicopter smuggling operations this decade, at least half had recently trained at flight schools, sometimes dropping out once they knew just enough to handle the machine, an Associated Press review found.

Flight school operators say they don't check a student's background or monitor what students do on their own time, though they generally do ask why a student wants to become a pilot. Several said they don't want to train smugglers, but they also don't want to turn away business simply because a prospective student might be heavily tattooed or pay in cash.

"I don't think there's anything we can do," said Chinook Helicopters owner Cathy Press, who has seen several former students arrested for smuggling. "If you went and thought everyone was drug-running, you could tell the police, but maybe you're wrong — and that's not great for business."

Even if her suspicions were correct, she added, "They might put someone in jail, but someone else will step forward, so why get in the middle of it?"

A clean criminal record is not a prerequisite for a pilot's license, said Rod Nelson, a spokesman for Transport Canada, the government agency that oversees the aviation industry. Nor do Canadian officials ask students to disclose previous convictions. They do ask about any substance abuse in an applicant's past.

The U.S. Federal Aviation Administration takes a similar approach, asking flight students to disclose previous convictions and requiring background checks only of foreign students, spokesman Paul Turk said.

Sam Lindsay-Brown was a clean-cut, friendly 23-year-old when he showed up at Chinook Helicopters in Abbotsford to begin flight training in December 2007. He was also a drug smuggler. And for almost a year after Canadian police began investigating him, he remained enrolled, essentially working his way through flight school as a co-pilot on cross-border drug flights.

U.S. agents arrested Lindsay-Brown in February as he put his training to use by making a 426-pound marijuana drop in northeastern Washington state with one of Martin's leased helicopters. He committed suicide in jail four days later.

The Royal Canadian Mounted Police and Transport Canada note that they can't bar people from studying as a pilot or obtaining a license without proof of criminal activity.

"The guy's 20-some-odd years of age, and he's gaining qualifications that can be used for a lawful purpose," said RCMP Cpl. Dan Moskaluk. "It's a tragedy that he chose to get involved in this line of business, instead of pursuing the lawful side of the skills he was acquiring."

The RCMP declined to say whether agents were aware he had been enrolled at flight school. They had been investigating him since spring 2008, after a woman he hired to transport 200,000 tabs of Ecstasy was arrested in California and gave his name to police.

RCMP spokesman Norm Massie said the agency had no record of Lindsay-Brown making prior smuggling flights, but two coconspirators confirmed to the AP that Lindsay-Brown had made several as a co-pilot, meaning he would be paid at least $5,000 to help load and unload contraband and keep an eye out for trouble.

The coconspirators spoke on the condition of anonymity because of their own involvement in criminal activity and fear that they could face repercussions from otherdrug traffickers for speaking with a reporter.

Massie declined to discuss what steps the RCMP takes to monitor flight schools, but said the agency knows that some traffickers get training there.

"We would be remiss not to include that in our investigative techniques," Massie said.

Martin, 37, was sentenced in 2007 in Canada to 2 1/2 years in prison for leading a major drug-smuggling operation in the 1990s, one that started using an airplane after ground couriers were caught.

He said he became involved in drug trafficking about 16 years ago and remains well connected in the smuggling world, though he declined to discuss specifics; he was arrested but has not been charged in Lindsay-Brown's case. In interviews with the AP, he estimated that as many as 30 pilots across Canada make drug-smuggling flights at least occasionally.

Someone looking to hire a pilot can put the word out via Blackberry and hear from pilots as far away as Quebec or Australia by the end of the day, Martin said.

In dozens of interviews with smugglers, pilots, lawyers, Canadian and U.S. authorities, and operators of flight schools and helicopter companies, a snapshot of the highly specialized profession emerged.

Some drug-running pilots are highly experienced. Some do it full-time, and some do it on the side when legitimate business gets slow or unexpected expenses such as helicopter damage leave them struggling to pay the bills. Some enjoy the rush. Some have a thing for getting America high. They all like the money.

One, Shane Menzel, told a federal judge in Seattle that he turned to smuggling because it was so hard to find work as an inexperienced pilot. Many "low-time" pilots must work for years washing helicopters and cleaning out hangars before they get a real flying job.

People familiar with British Columbia's marijuana trade have estimated that anywhere from 30,000 to more than 80,000 pounds of pot per month is smuggled into the United States.

It's a huge business, infusing billions of dollars a year into the province's economy. The province's most prominent gangs — the Hells Angels, the United Nations, the Independent Soldiers — are believed to own most of the drugs moved across the border, but to avoid heat they leave the shipping to others.

Air transport is generally considered the best way to exploit the vast, unpopulated terrain along the border.

Planes can fly faster and farther than helicopters, but need airstrips. Helicopters can skim treetops — flying as close as three feet — to avoid radar detection. They can dart through low mountain passes or river valleys and land at a remote clearing or even a wide spot in a logging road, where they're met by GPS-equipped drivers. They're back across the Canadian border in minutes.

Often, no cash crosses the border, because it might be seized or difficult to exchange, Martin said.

Instead, whoever moves the marijuana or Ecstasy south gives the profit to a U.S.-based cocaine trafficker. That trafficker instructs a contact north of the border to pay the Canada-based owner of the marijuana or Ecstasy.

The cocaine trafficker then takes the proceeds from the marijuana to buy cocaine to be shipped north into Canada, where the transaction happens again in reverse.

A helicopter smuggling operation charges about $350-$550 per pound to fly marijuana south of the border, and $1,500-$1,800 per kilogram to bring cocaine back.

Such an operation, of course, needs helicopters. In Canada, it is difficult to lease a helicopter without an operating certificate, a Transport Canada document that allows someone to use a helicopter for commercial purposes. Such a document is a sign of legitimacy to leasing companies, who typically want to know what their machines are being used for.

But there are ways around that hurdle.

Many smugglers instead simply buy helicopters, registering them to "numbered" companies — 123456789 Ltd., for example. There are 90 helicopters registered for private use to such companies across Canada, Transport Canada records show.

In other cases, smugglers have paid third parties to register the machines for them, or they're not registered at all. One unregistered helicopter with the tail mark C-FTCH has been used in smuggling runs and recently was parked deep in the woods near Cranbrook, in the mountains of southeastern British Columbia, three people with knowledge of the machine told the AP.

Martin bought the first helicopter he acquired in 2007, sight-unseen, for $925,000 from an owner in Texas. No conditions of his bail prohibited him from possessing aircraft. Massie declined to discuss Martin's case, but said generally: "Should those conditions be in place? Absolutely."

The helicopter was eventually repossessed when he couldn't afford more than $1 million in repairs. Meanwhile, Martin tried to lease another helicopter through Gorge Timber, a company registered in his wife's name. The helicopter was a Eurocopter EC-120 put up for lease by a British Columbia company called Vertical Solutions, run by Kevin McCart. Martin said he didn't think he'd be able to get the lease without an operating certificate, but a Calgary city police aircraft engineer, Greg Solar, who had helped him repair his first chopper, had a connection.

"I thought, 'We're a little company, we don't have the best books,'" Martin said. "And all of a sudden Greg's saying, 'I know Kevin McCart. I'll put in a good word for you guys.'"

Solar and McCart declined to speak with the AP, but Martin said he leased the EC-120 for $30,000 U.S. a month, including insurance and maintenance. He had it for about nine months, until last fall, when the owner took it back because uninsured pilots had been flying it. The helicopter was used in cross-border drug flights, Lindsay-Brown's coconspirators told the AP.

Early this year, Martin used Gorge to lease another machine — the Bell 206 Jet Ranger that Lindsay-Brown was arrested in — from Eagle Copters of Calgary, one ofCanada's most prominent helicopter companies.

Mike O'Reilly, Eagle's president, did not return repeated calls from the AP.

"Sure, I have a past, but those charges were a decade ago," Martin said. "If you have the money and you want to get into a helicopter business, you can — doesn't matter who that individual is."

On Feb. 23, the day of his arrest, Lindsay-Brown climbed into the Jet Ranger at Martin's shop and flew it to a snowy clearing outside Ione, Wash. He was to drop off 426 pounds of marijuana and pick up 83 kilos of cocaine, authorities said.

But the driver he was meeting, Len Ferris, had been arrested in Utah with the cocaine. For more than a day, Ferris did not return Blackberry messages from Sean Doak, a recently paroled drug trafficker who was his contact on the Canadian side of the border, Martin said he later learned from Adam Serrano, another man arrested in the case.

That was a clear sign of trouble, but Doak never told Lindsay-Brown about it, and Lindsay-Brown had no clue he was flying into a setup, Martin said.

U.S. agents greeted him with guns drawn.

Martin reported the helicopter stolen. The DEA said it didn't believe him and returned the machine to Eagle Copters.

The following week, another pilot flew down to meet Ferris — with predictable results. This time, it was Jeremy Snow, who recently had done flight training at Okanagan Mountain Helicopters in Kelowna. He was arrested as he landed in Idaho, pleaded guilty in U.S. District Court in Seattle and is expected to face four years in prison.

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