Panama Papers show how rich American clients hid millions abroad

panama-papers

The New York Times reports: Over the years, William R. Ponsoldt had earned tens of millions of dollars building a string of successful companies. He had renovated apartment buildings in the New York City area. Bred Arabian horses. Run a yacht club in the Bahamas, a rock quarry in Michigan, an auto-parts company in Canada, even a multibillion-dollar hedge fund.

Now, as he neared retirement, Mr. Ponsoldt, of Jensen Beach, Fla., had a special request for Mossack Fonseca, a Panama-based law firm well placed in the world of offshore finance: How could he confidentially shift his money into overseas bank accounts and use them to buy real estate and move funds to his children?

“He is the manager of one of the richest hedge funds in the world,” a lawyer at Mossack Fonseca wrote when the firm was introduced to Mr. Ponsoldt in 2004. “Primary objective is to maintain the utmost confidentiality and ideally to open bank accounts without disclosing his name as a private person.”

In summary, the firm explained: “He needs asset protection schemes, which we are trying to sell him.”

Thus began a relationship that would last at least through 2015 as Mossack Fonseca managed eight shell companies and a foundation on the family’s behalf, moving at least $134 million through seven banks in six countries — little of which could be traced directly to Mr. Ponsoldt or his children.

These transactions and others like them for a stable of wealthy clients from the United States are outlined in extraordinary detail in the trove of internal Mossack Fonseca documents known as the Panama Papers. The materials were obtained by the German newspaper Süddeutsche Zeitung and the International Consortium of Investigative Journalists, and have now been shared with The New York Times. [Continue reading…]

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Voting rights at the crossroads

Elaine Godfrey writes: The November election will be the first presidential contest to take place since the U.S. Supreme Court ruled to strip some of the major protections of the Voting Rights Act of 1965, which required states with a history of voter discrimination to get federal clearance before changing their voting laws. Seventeen states will have new voting restrictions in place for the first time. Among them, Wisconsin, Texas, and North Carolina have tightened their photo ID requirements; Kansas now requires proof of citizenship to cast a ballot; and Arizona has made it a felony for people to collect ballots from others and take them to the polls.

Some people — mostly Democrats — say these laws disenfranchise poor and minority voters. But others — mostly Republicans — defend the stringent requirements as part of an effort to prevent voter fraud (an occurrence scholars largely consider to be a myth, and in some states, is more rare than a lightning strike).

But just as some states are making it more difficult to vote, others are passing legislation to make it easier.

The Illinois House and Senate approved a measure on Tuesday to register people to vote automatically when they renew their driver’s licenses at the DMV (with an option to opt out). If Illinois Governor Bruce Rauner signs the legislation—something he has shown support for in the past—the Prairie State will be the fifth state to enact automatic voter registration, after Oregon, California, Vermont, and West Virginia. Dozens of other states are considering similar legislation. [Continue reading…]

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‘I just wanted to be free’: The radical reverberations of Muhammad Ali

Dave Zirin writes:  The reverberations. Not the rumbles, the reverberations. The death of Muhammad Ali will undoubtedly move people’s minds to his epic boxing matches against Joe Frazier and George Foreman, or there will be retrospectives about his epic “rumbles” against racism and war. But it’s the reverberations that we have to understand in order to see Muhammad Ali as what he remains: the most important athlete to ever live. It’s the reverberations that are our best defense against real-time efforts to pull out his political teeth and turn him into a harmless icon suitable for mass consumption.
When Dr. Martin Luther King came out against the war in Vietnam in 1967, he was criticized by the mainstream press and his own advisors who told him to not focus on “foreign” policy. But Dr. King forged ahead and to justify his new stand, said publicly, “Like Muhammad Ali puts it, we are all—black and brown and poor—victims of the same system of oppression.”

When Nelson Mandela was imprisoned on Robben Island, he said that Muhammad Ali gave him hope that the walls would some day come tumbling down.

When John Carlos and Tommie Smith raised their fists on the medal stand in Mexico City, one of their demands was to “Restore Muhammad Ali’s title.” They called Ali “the warrior-saint of the Black Athlete’s Revolt.”

When Student Non-Violent Coordinating Committee (SNCC) volunteers in Lowndes County, Alabama launched an independent political party in 1965, their new group was the first to use the symbol of a black panther. Beneath the jungle cat’s black silhouette was a slogan straight from the champ: “WE Are the Greatest.”

When Billie Jean King was aiming to win equal rights for women in sports, Muhammad Ali would say to her, “Billie Jean King! YOU ARE THE QUEEN!” She said that this made her feel brave in her own skin.

The question is why? Why was he able to create this kind of radical ripple? The short answer is that he stood up to the United States government… and emerged victorious. But it’s also more complicated that that. [Continue reading…]

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Muhammad Ali, Thomas Hobbes, and the politics of fear

Corey Robin writes: When Muhammad Ali famously said, “Man, I ain’t got no quarrel with them Vietcong…they never called me nigger,” he wasn’t just refusing to serve in Vietnam. Nor was he peddling an anodyne “We’re all human beings, let’s be friends” piece of feel-good agitprop. He was challenging the ability of the state to define for its citizens whom they should fear and who were their enemies. He was usurping that power and claiming it for himself. As Ali said to a group of white college students, who had challenged his position on serving in Vietnam, “You my enemy. My enemy is the white people, not Viet Congs or Chinese or Japanese.”

From the time of Hobbes, one of the leading attributes of sovereignty has been the right of the state to define and determine what threatens a people and how that threat will be responded to. In the state of nature, Hobbes wrote in Elements of the Law, “every man…is judge himself of the necessity of the means, and of the greatness of the danger” he faces. But once we submit to the state, we are forbidden “to be our own judges” of the threats we are facing and how to respond to them. Except in cases of immediate physical threat to ourselves, we must now accede to the sovereign’s assessment of and decision about these threats. The sovereign, as Hobbes says in Leviathan of the state’s control over matters theological, is he “to whom in all doubtfull cases, wee have submitted our private judgments.”

This is why Ali’s challenge to the Vietnam War was so formidable. He wasn’t merely claiming conscientious objector status, though he was. He wasn’t simply claiming the authority of a higher being, though he was. He was asserting the right of the citizen to be the final judge of what threatens or endangers him. In asserting that right, Ali was posing the deepest, most fundamental challenge to the power and authority of the state. [Continue reading…]

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Shunned by white America, how Muhammad Ali found his voice on campus tour

The Guardian reports: Time had sanitized the past. Portraits of Muhammad Ali’s activism in the wake of his death at 74 on Friday paint a picture of a fighter who helped change American culture with his refusal to be drafted into the US military but cannot explain how dire his situation actually was in 1967.

Much of America hated and feared him. He was facing five years in prison for saying no to the military. He was through as a fighter, stripped of his license by the New York State Athletic Board and facing a long court fight to overturn his conviction.

“Everyone turned on him,” fellow boxer George Foreman told CNN on Saturday. “I mean literally everyone. I hadn’t even gone into boxing yet. No one wanted to be in his presence. No one wanted to be his friend and he was dropped.”

This was one of the toughest parts of Ali’s life. As his backers in the Nation of Islam pushed him further into activism, much of white American shunned him. His passport had been taken away. He complained, at one point that: “I’m not allowed to work in America and I’m not allowed to leave America.”

And yet the three-year period – at the height of his sporting powers, from when he refused to step forward as draft officials in Houston called his name to 1971 when the supreme court overturned his conviction and five-year sentence – helped shape the Ali who would later become beloved. It became the time that he grew into his voice. [Continue reading…]

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Muhammad Ali taught me to be proud of my skin and Muslim faith

Omar Musa writes: Once, when I was a child growing up in Australia, I got teased by another kid because I had brown skin. The kid told me my skin was the same colour as shit. I went home in tears and, for the only time in my life, I said to my parents that I wished I wasn’t brown.

My parents sat me down and told me to be proud of my skin and of being Muslim, even if other people put you down for it. I don’t know if it was connected but soon afterwards my dad began to show me tapes of a charismatic, handsome black boxer from America, a proto rapper who spat rhymes and cracked jokes, who drove a pink Cadillac, who stood up for his people and his convictions, all the while dancing on the canvas like no one before and no one to come.

And he was Muslim, like us, and proud of it! And a poet! And he had even fought in Malaysia (where my dad came from) once!

I went to the Queanbeyan library and photocopied pictures of him to stick in my school diary and on my wall. I could never be a boxer but I could have that unfuckwithable attitude.

Ali taught me to be brave, to stand up for myself, to fight for the underdog and that, even if society was against you, your conviction for what was right would be vindicated by history. That there was something radical in being completely and utterly yourself. That my brown skin was not the colour of shit – it shone brighter than gold. He taught me to be proud. [Continue reading…]

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Shadi Hamid on the past and future of political Islam

William Armstrong interviews Shadi Hamid and discusses his new book, Islamic Exceptionalism: How the Struggle over Islam is Reshaping the World:

This new book follows your previous book, published in 2014, “Temptations of Power: Islamists and Illiberal Democracy in a New Middle East.” Back then, in the aftermath of the Arab Spring, you described how Islamist participation in democracy was inevitable and should be facilitated. Obviously the landscape has changed a lot since then. What big shifts did you want to address in the new book?

I really wanted to address the question of how much religion matters. How much of this has to do with “Islam” and how much of it has to do with political or economic factors. That’s the question that I’ve gotten so much from American observers. This book is an attempt to situate the role of religion, at a time when we’re trying to understand the rise of ISIS and the region’s descent into violence and civil war.

I make an argument that I’m slightly uncomfortable with. I realize that some people will misinterpret it and some will abuse it for purposes that I’m against. I argue that Islam is in fact exceptional. Islam is fundamentally different than other major religions in important ways, primarily in how it relates to law, politics and governance. What that means in practice is that Islam – historically but also today – plays an outsize role in public life, and also that it appears to be uniquely resistant to secularization. There have been many attempts to neutralize or privatize Islam, or make it less relevant in everyday life. But those attempts have failed. This forces us to reckon with the possibility that we aren’t all the same. We don’t all necessarily want the same things.

I’m trying to challenge the liberal determinism that is implicit in so many of our conversations about Islam: That all peoples cultures and societies follow a linear trajectory toward a reformation, then an enlightenment, then secularization, then the “end of history” of liberal democracy. As an American, it is so much part of our culture to just assume that these things are inevitable. But what if they’re not? It’s hard for people to take on the prospect that in Muslim-majority populations there is a general unwillingness to push religion aside. That has major implications for how we understand not just the Middle East but also the future of Muslims in the West.

There’s a danger that this idea of “exceptionalism” plays into the hands of both the most fundamentalist Islamists and the worst Islamophobes.

Exactly. But I have to be faithful to my findings. What I’m saying is that the “difference” of Islam isn’t necessarily a bad thing. Whenever we hear that Islam is different and it can’t be extracted from politics, we assume it means that Islam is backwards, bad or problematic. But we have to move beyond this presumption that religion always plays a negative role in politics and that the solution is always to move to secularism. That’s why I self-consciously chose the word “exceptionalism.” For me that is a word that should be value-neutral. Exceptionalism can be good and it can be bad. We also talk about American exceptionalism – which can be seen in a negative or positive light. So I hope people will resist the temptation to just say “Islam is different and that is definitely a bad thing.” I argue that difference isn’t necessarily a bad thing. [Continue reading…]

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In Turkey, a Syrian child ‘has to work to survive’

The New York Times reports: When he was 9, Ahmad Suleiman watched his father die from a battlefield wound in Syria. Four years later, he now puts in 12-hour shifts at a damp and squalid textile factory in Istanbul as the primary breadwinner for his family, which fled to Turkey after his father’s death.

Over one million Syrian children live in Turkey, and thousands of them, like Ahmad, are in sweatshops, factories or vegetable fields instead of in a classroom, members of a lost generation who have been robbed of their youth by war.

Like many others in his situation, while he toils for his family, Ahmad is paying a steep price. “I want to send Ahmad to school because he doesn’t know how to read and write and can’t understand the bus signs,” said his mother, Zainab Suleiman, 33. “But I have no choice. He has to work to survive.”

Many of the children who arrive in Turkey have already lost years of schooling because of the war. Before the conflict, 99 percent of Syrian children were enrolled in primary schools and 82 percent in secondary schools, Unicef has reported. Today, nearly three million Syrian children are out of school, and for those in Turkey, the education gap has either grown longer or become permanent.

While more than a million Syrians have reached Europe, many more — three million in all, including Ahmad’s family — have been forced by poverty to stay in Turkey, where their prospects are bleak. [Continue reading…]

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Assad’s media adviser might be even more evil than the man burning Syria

David Blair writes: If there is a Marie Antoinette of our age, it must be Bouthaina Shaaban, the odious “media adviser” to Syria’s regime. When asked about the medieval sieges currently being imposed on a million Syrians in rebel-held enclaves by her master, Bashar al-Assad, she did not actually say “let them eat cake” – but she might as well have done.

There was “no need” for food aid in Syria, declared Ms Shaaban during a press briefing last Thursday, and the inhabitants of the towns and refugee camps blockaded by her regime could do without “macaroni” and “tin fruits” from the United Nations.

One suburb of Damascus, known as Daraya, has been subjected to a particularly pitiless siege since November 2012: during the whole of that time, the regime has allowed only one aid convoy into the area – and even that was prevented from carrying any food.

But the well-nourished Ms Shaaban blithely described Daraya as the “food basket of Damascus”, adding: “There’s nobody starving in Daraya.” [Continue reading…]

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How ISIS is winning the media war

Mohammed A. Salih writes: Faced with what has been often described as the world’s most resourceful and sophisticated terror organization, Iraq’s news media outlets have stumbled in how to cover the Islamic State (IS). The country’s news media appear to have unwillingly assisted IS in disseminating some of its gruesome propaganda releases, thus enabling it to achieve broader reach and possibly even impact.

IS brutality and its dramatic expansion in Iraq over the last couple of years has posed a major challenge for Iraqi media outlets. Is covering the group’s activities a legitimate public service or an extension of its own jihadi propaganda?

While media editors and managers at major Iraqi news outlets are aware of the ethical debate surrounding the use of propaganda materials by terrorist groups, and especially graphic content, a combination of political agendas and lack of rigorous editorial oversight appear to hamper the translation of that knowledge into practice. [Continue reading…]

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Is Ennahda following in AKP footsteps?

Mustafa Akyol writes: It is no secret that in the midst of the ongoing turmoil in the Middle East, Tunisia has emerged as the brightest spot. It is also no secret that Tunisia’s success has been made possible in part by the moderate stance of its main Islamist party, Ennahda, which on May 21 at its party congress announced that it was officially abandoning political Islam. The longtime leader of the party, Rachid Ghannouchi, who was re-elected at the event, vowed to “keep religion far from political struggles” and announced that Ennahda would abandon all its religious activities, including preaching in mosques.

Naturally, this news reminded some of the founding of Turkey’s Justice and Development Party (AKP) 15 years ago. At that time, the AKP, which came from an “Islamist” political tradition, had also declared a major change in perspective. Similar to Ennahda’s new self-identification as “Muslim democrats,” the AKP’s founders called themselves “conservative democrats.” The term “conservative” in Turkey is often another way of saying “practicing Muslim.” Moreover, Ghannouchi had in the past spoken about the “Turkish experience” and pointed to it as a positive frame of reference.

It is also no secret, however, that the so-called Turkish experience has not been going well lately. The AKP of today, heavily criticized for authoritarianism, is a far cry from the AKP of the early 2000s that was widely praised for its reforms. The common perception of the party, especially its iron-willed leader, Recep Tayyip Erdogan, is that it was “moderate” when weak but turned autocratic after consolidating power. One could therefore argue that if Ennahda is really following in the footsteps of the AKP, it is not a reassuring step. [Continue reading…]

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Has the quantum era has begun?

IDG News Service reports: Quantum computing’s full potential may still be years away, but there are plenty of benefits to be realized right now.

So argues Vern Brownell, president and CEO of D-Wave Systems, whose namesake quantum system is already in its second generation.

Launched 17 years ago by a team with roots at Canada’s University of British Columbia, D-Wave introduced what it called “the world’s first commercially available quantum computer” back in 2010. Since then the company has doubled the number of qubits, or quantum bits, in its machines roughly every year. Today, its D-Wave 2X system boasts more than 1,000.

The company doesn’t disclose its full customer list, but Google, NASA and Lockheed-Martin are all on it, D-Wave says. In a recent experiment, Google reported that D-Wave’s technology outperformed a conventional machine by 100 million times. [Continue reading…]

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The outsized life of Muhammad Ali

David Remnick writes: What a loss to suffer, even if for years you knew it was coming. Muhammad Ali, who died Friday, in Phoenix, at the age of seventy-four, was the most fantastical American figure of his era, a self-invented character of such physical wit, political defiance, global fame, and sheer originality that no novelist you might name would dare conceive him. Born Cassius Clay in Jim Crow-era Louisville, Kentucky, he was a skinny, quick-witted kid, the son of a sign painter and a house cleaner, who learned to box at the age of twelve to avenge the indignity of a stolen bicycle, a sixty-dollar red Schwinn that he could not bear to lose. Eventually, Ali became arguably the most famous person on the planet, known as a supreme athlete, an uncanny blend of power, improvisation, and velocity; a master of rhyming prediction and derision; an exemplar and symbol of racial pride; a fighter, a draft resister, an acolyte, a preacher, a separatist, an integrationist, a comedian, an actor, a dancer, a butterfly, a bee, a figure of immense courage.

In his early career, when he declared his allegiance to Elijah Muhammad’s Nation of Islam, rid himself of his “slave name,” and lost his heavyweight title rather than fight in Vietnam, Ali was vilified as much as he was admired. Millions hated Ali; he threatened a sense of the racial order; he was, in his refusal to conform to any type, as destabilizing to many Americans as he was to the many heavyweights who could not understand why he would just not come to the center of the ring and fight like a real man. He was, for many years, a radical figure for many Americans. For years, many refused to call him by his new name. “I pity Clay and abhor what he represents,” the columnist Jimmy Cannon wrote. Even Red Smith, the most respected of all sports columnists, compared Ali to the “unwashed punks” who dared to march against the war. But in recent decades, as Parkinson’s disease began to overwhelm his gifts for movement and speech, and as the country’s attitudes changed, Ali became a focus of almost universal affection. The people who encountered him at charity dinners, in airports, at sporting events approached him as they would a serene Pope Francis or the Dalai Lama, and, if he could summon a whispered joke or flirt for a moment or just widen his eyes in that old vaudeville way of his, people left with a sense of having met a source of wonder. [Continue reading…]

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Muhammad Ali knocked Trump’s Muslim ban before he died

Marlow Stern writes: The late Muhammad Ali, who passed away Friday evening at the age of 74, was proudly, unapologetically black. He fought for the civil rights of African Americans, and famously refused to serve in the Vietnam War with the following ardent proclamation: “I ain’t got nothing against no Viet Cong; no Viet Cong never called me nigger.”

He was also a devout Muslim and dedicated member of the Nation of Islam, having fallen under the tutelage of Malcolm X in 1962. When rumors began circulating that year that he’d joined the Nation of Islam, one of his bouts was nearly canceled, and when he officially joined in 1964, he had his boxing titles stripped from two organizations, including the WBA. Shortly thereafter, Nation of Islam leader Elijah Muhammad—who became a surrogate father to Ali—announced that the man formerly known as Cassius Clay would henceforth be “Muhammad Ali,” with “Muhammad” meaning “one who is worthy of praise” and Ali the cousin and son-in-law of the Prophet Muhammad, as well as the fourth caliph. He later left the NOI after experiencing a falling out when Elijah Muhammad stepped down and, in 1975, converted to Sunni Islam (he later embraced Sufism).

In the wake of the deadly mass shooting in San Bernardino, California, by two ISIS-affiliated terrorists, presidential candidate Donald Trump called for a ban on all Muslims entering the United States.

“Donald J. Trump is calling for a total and complete shutdown of Muslims entering the United States until our country’s representatives can figure out what is going on,” he announced in a campaign press release.

This was, of course, after a rash of other anti-Muslim comments Trump had made, including that he wanted American mosques to be surveilled, considered establishing a database monitoring all Muslims in the U.S., and his bogus claim that he saw “thousands” of Muslims in New Jersey celebrating as the Twin Towers fell on 9/11 (then again, Trump also claimed he saw people jump from the Towers on 9/11 from a “view in my apartment that was specifically aimed at the World Trade Center,” even though he lives in midtown Manhattan, more than four miles from Ground Zero).

Ali, who was cordial with Trump in years past, and even gave him the Muhammad Ali award at his Celebrity Fight Night XIII in 2007, had strong words for the reality star turned politician’s proposed Muslim ban. [Continue reading…]

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