Russiagate: Do We Follow the Money or Follow the Dead Bodies?

Follow the Money:

From USAToday (middle America's newspaper) there's this story about Trump's fear that his finances will be looked into. It's a rational fear, but it's making him irrational.

"The [Mueller] investigation could shine renewed light on eyebrow-raising deals from Trump’s past, such as his 2008 sale of a South Florida mansion to Russian tycoon Dmitry Rybolovlev for $95 million or the international financing behind a condo-hotel he developed with foreign partners in New York’s SoHo neighborhood.

"It could also pierce the increasing secrecy around who is buying real estate from Trump. A USA TODAY investigation last month revealed that 70% of Trump real estate sales since he won the GOP nomination were to secretive shell companies, compared to 4% in the two years before that. The clear shift to those kinds of purchases, which help obscure the identities of the buyers, raise questions about the source of profits that ultimately flow to the President because he has not fully divested from his companies."

There's also this USAToday story about Trump's financial dealings and the cookie crumbs leading to Moscow.

Follow the Dead Bodies:

From BuzzFeed, there is this story about the latest murder of a witness before he could testify in the Russia investigation.

"Vladimir Putin’s former media czar was murdered in Washington, DC, on the eve of a planned meeting with the US Justice Department, according to two FBI agents whose assertions cast new doubts on the US government’s official explanation of his death.

"Mikhail Lesin’s battered body was discovered in his Dupont Circle hotel room on the morning of Nov. 5, 2015, with blunt-force injuries to the head, neck, and torso. After an almost yearlong "comprehensive investigation," a federal prosecutor announced last October that Lesin died alone in his room due to a series of drunken falls “after days of excessive consumption of alcohol.” His death was ruled an "accident," and prosecutors closed the case.

"But the two FBI agents — as well as a third agent and a serving US intelligence officer — said Lesin was actually bludgeoned to death. None of these officials were directly involved in the government’s investigation, but they said they learned about it from colleagues who were.

"“Lesin was beaten to death,” one of the FBI agents said. “I would implore you to say as much. There seems to be an effort here to cover up that fact for reasons I can't get into.”"

This article from The Atlantic covers the testimony of William Browder regarding the murder-in-custody of his lawyer, which prompted the Magnitsky Act sanctions in the first place.

"There are approximately ten thousand officials in Russia working for Putin who are given instructions to kill, torture, kidnap, extort money from people, and seize their property. Before the Magnitsky Act, Putin could guarantee them impunity and this system of illegal wealth accumulation worked smoothly. However, after the passage of the Magnitsky Act, Putin’s guarantee disappeared. The Magnitsky Act created real consequences outside of Russia and this created a real problem for Putin and his system of kleptocracy.

"For these reasons, Putin has stated publicly that it was among his top foreign policy priorities to repeal the Magnitsky Act and to prevent it from spreading to other countries. Since its passage in 2012, the Putin regime has gone after everybody who has been advocating for the Magnitsky Act.

"One of my main partners in this effort was Boris Nemtsov. Boris testified in front of the U.S. Congress, the European Parliament, the Canadian Parliament, and others to make the point that the Magnitsky Act was a “pro-Russian” piece of legislation because it narrowly targeted corrupt officials and not the Russian people. In 2015, Boris Nemtsov was murdered on the bridge in front of the Kremlin.

"Boris Nemtsov’s protégé, Vladimir Kara-Murza, also traveled to law-making bodies around the world to make a similar case. After Alexander Bastrykin, the head of the Russian Investigative Committee, was added to the Magnitsky List in December of 2016, Vladimir was poisoned. He suffered multiple organ failure, went into a coma and barely survived.

"The lawyer who represented Sergei Magnitsky’s mother, Nikolai Gorokhov, has spent the last six years fighting for justice. This spring, the night before he was due in court to testify about the state cover up of Sergei Magnitsky’s murder, he was thrown off the fourth floor of his apartment building. Thankfully he survived and has carried on in the fight for justice."

And while Putin is whacking witnesses and Trump is trying to kill investigations, the Republican apparatus is busy cooking up bogus stories like the one Seth Rich's family is filing suit over. Any time there is a murder the Right will seek to pin it on Democrats.

Trump admires Putin. Trump envies Putin for his ability to assert power however he wishes. Putin is Trump’s role model. Trump would like to change America to make it more like Russia, more of a brutal autocracy in which the elite loots the nation’s wealth and evades the taxes everyone else pays. So what else is new? We already knew all this. Trump has planned all along to turn the United States into a kleptocracy.

A new piece from VOX about Trump's plans for American kleptocracy.

Putin’s Russia is not a free market economy but a kleptocracy, in which Putin skims billions off of every transaction and every deal, in which nobody has wealth or power without Putin taking his cut. What happens to this massive wealth is not good for Russians because it is parked offshore. A lot of it appears to have been laundered through high end real estate transactions here in the U.S., some of them via Trump and Kushner and their associates. (Trumps Commerce Secretary owned and ran a Cypriot bank that was one of the favorite money-laundries used by Putin’s oligarch cronies.) Think of these helpful real estate tycoons as fences receiving stolen goods, in this case those goods are the wealth of an entire country. You might say this isn’t important to Americans, that it may even be good for Americans because they are parking their billions here. The danger is the corruption of our economy, and the corruption of our democracy if our president is a willing money launderer and a co-conspirator with a global criminal gang.

Is it safe for us to think of all these billions being invested in U.S. real estate as a good thing with no down side? The wealth that the Nazis stole from the Jews of Germany and Europe was rationalized to the German people as a confiscation that would benefit them, but it corrupted them and it murdered six million Jews/liberals/gays/minorities; millions of German gentiles also died in the catastrophe that ensued.

How Trump Makes Us More Like Russia (Poor Us)

Why are we focused on Russia? "Trump won, shut up." "Why does it matter if Russians helped him?” It matters because Trump’s financial and business history is deeply entangled with Russian criminality, and the criminals who have helped him preserve an appearance of wealth for three decades will demand something in return. Like anyone who gets in bed with mobsters, Trump is being forced to pay them back (to borrow his word) “hugely." He may be paying them with our money, or he may be paying them back by dismantling America's global superiority, enabling Russia to fill that vacuum. Or he may be paying them back by grafting the kleptocratic Russian model onto our economy. Putin the kleptocrat has plenty of admirers here, rich people who see our economy as something to be looted rather than run properly and fairly. Investigators are following the money.

This Bloomberg article follows the rubles down the years through Trump Inc.

"The Post noted that the investigation also includes "suspicious financial activity" involving "Russian operatives." The New York Times was more specific in its account, saying that Mueller is looking at whether Trump associates laundered financial payoffs from Russian officials by channeling them through offshore accounts."

Trump promises everything, but how much does he deliver? Ask the people who enrolled their futures in Trump University. Now he's taken that con game to new heights via the White House, where his promises affect Americans' trust in their democratic system and institutions. Money Magazine reports on the Trump jobs promises that were hollow.

"Since his election, Trump has frequently used broad claims to take credit for jobs, especially those for blue collar workers, that the numbers don't bear out."

The massive advantages of people at the top of the economy used to be tempered somewhat by our democratic traditions and norms. But what if those norms and regulations were removed? What if the whole point of the economy was to enrich the very rich and bugger the rest of us? What if working people were the only ones paying for the roads and the bridges and the systems that keep our economy running, leaving the 1% off the hook? The money managers for the rich do a very good job of helping their clients avoid obligations the rest of us have to shoulder. Like those Russian oligarchs who operate as global free agents with no obligations and no restrictions.

The Nation reports on how this scam is operated.

" Part of the inequality problem, however, is that trillions of dollars are being shifted off the ledger, hidden from measurement and taxation. Some of this “hidden wealth of nations,” as Gabriel Zucman calls it, is kept in offshore tax havens like the Cayman Islands and Panama that function as secrecy jurisdictions with minimal transparency or reporting requirements. Trillions more has been hidden in trusts and other complex financial arrangements available only to the very wealthy. New research suggests that households in the top 0.01 percent, those with wealth over $40 million, evade 25 to 30 percent of person income and wealth taxes—about 10 times more than the general population.

"This process is aided and abetted by professional wealth managers who facilitate and lubricate the process of hiding wealth. Many of them work in private family offices that serve wealthy families. These are not mom-and-pop financial planners who help protect families from running out of money. We’re talking about the well-compensated professionals that serve the richest one-tenth of one percent of Americans."

But getting back to Trump and Russia––who has been floating Trump while he runs his grift on Americans? Fortune magazine reports.

"Trump said in the deposition that Bayrock’s Tevfik Arif “brought the people up from Moscow to meet with me,” and that he was teaming with Bayrock on other planned ventures in Moscow. The only Russians who likely had the resources and political connections to sponsor such ambitious international deals were the corrupt “oligarchs.” Although Trump claimed that negative publicity about him from O’Brien killed the deals, he still insisted that “we are actually going to be [in Russia] fairly soon.” When asked if he had “concerns about investing in Russia,” Trump answered “No.”

“...The plaintiffs in a 2015 racketeering case against Bayrock, Sater, and Arif, among others, alleged in the civil lawsuit that: “for most of its existence it [Bayrock] was substantially and covertly mob-owned and operated,” engaging “in a pattern of continuous, related crimes, including mail, wire, and bank fraud; tax evasion; money laundering; conspiracy; bribery; extortion; and embezzlement.” Although the lawsuit does not allege complicity by Trump, it claims that Bayrock exploited its joint ventures with Trump as a conduit for laundering money and evading taxes. The lawsuit cites as a “Concrete example of their crime, Trump SoHo, [which] stands 454 feet tall at Spring and Varick, where it also stands monument to spectacularly corrupt money-laundering and tax evasion.””

How has Trump gotten away with this? It's complicated and complication makes criminals harder to jail. Complex schemes are likelier to keep the money they've stolen. Look at how the financiers who collapsed our economy evaded jail. Trump's genius is in deception and evasion and big talk. He took the schtick on TV and got big ratings. We loved Trump like we loved Tony Soprano, because he wasn't hurting us personally... so we thought. Enough Americans loved that and bought it to make him a viable candidate in the Republican Party where that kind of scheme is accepted and admired. Where successful criminals are Winners and victims are Losers. Millions of Americans love throwing their money away at casinos and investing in bogus schemes and this scheme was bogus and entertaining. It's not new. What's new is the elevation of flim-flam and racketeering into the White House. If he hasn't yet fully criminalized the White House he has left enough of a criminal trail for investigators to follow. Trump fired Comey and Preet Bharara for investigating him. Will he fire Mueller? Can he? Will we let him? Maybe the Republican Congress will give him time to finish the job.

The New Yorker reports on the deliberate complexity of this kind of crime.

"Donald Trump has long deployed what might be called the chaff approach to evading legal scrutiny in his business dealings. Parts of his labyrinthine business holdings seem to be likely targets of investigation. He was sued for civil fraud over promises made to students of Trump University (a case that was settled after Trump became President). He talked on CNBC about the need to pay bribes when doing business overseas. His Atlantic City casino, the Taj Mahal, was in violation of anti-money-laundering laws when Trump owned it. He has had ties to New York Mafia figures. Yet he has never been indicted nor, for all we know, did any prosecutor consider pursuing a criminal case. Perhaps this is because the structure of Trump’s business has been, like chaff tossed out of a bomber, a remarkably effective defense. There is no one thing to look at when investigating Donald Trump. There’s not one company, there are hundreds, possibly thousands. Every deal he does has its own legal structure, its unique set of participants and business model. Rarely—and less often in the past decade—is Trump the primary owner and visionary of a project. More typically, he has sold a license to put his name on someone else’s project.”

What we are witnessing is a massive criminal takeover of our country, including the public sector––the government––and the economy. While they make us look over there (sparkly object: tweets, empty promises, rallies, boasts, showbiz) they quietly pick our pockets. The GOP Congress is fully engaged: promising Bigger and Better and Cheaper while quietly removing healthcare benefits and guarantees for pre-existing conditions and removing the systems that keep the poor covered and regulations that protect average people from being preyed upon and poisoned and impoverished. And they are doing this to deliver trillions in tax cuts to the top 1%. They are looting America the way Putin has looted Russia.

PBS's Frontline reports on how Putin has looted the Russian economy.

Russian mobsters have been looting the Russian economy since the 1990s when Putin took over. The ones doing it are licensed to loot by Putin himself, who gets a cut of everything. The looted trillions need a place to hide and some of that cash has been hidden in and laundered through Donald Trump’s many failing and dicy enterprises. Because nobody else would finance Trump. The banks refused. When the banks won’t help you, you turn to the Mob. Trump appears to be fully mobbed up.

But the larger pattern is more disturbing: the entire Republican financial scheme, including the healthcare “reform” and tax “reform” and deregulation and reinventing government itself, all seem to be modeled on the old scenario of mobsters taking over your business and looting it. Where is there money? Find it, take it, leave the system that money was operating in as a dysfunctional shell. They are operating on our national economy the way diners work on crab legs at Red Lobster: cracking the shell and sucking out the meat. What’s left is garbage.

They look at an economy full of hard working people and they see the workers as a liability not an asset. Dump them. But fleece them first. Ditch all the promises made to them. Suck out all the benefits and loot their retirement funds. Then replace them with robots, as Carrier is doing in Indiana with the money Trump gave them to save jobs.

Trump and his Republican friends in Congress are hollowing America out, using the Russian model. Like rodents looking for food supplies or missiles seeking targets, they are finding all the pockets of money being used to keep the system running and putting it into the pockets of their richest friends. Because they and their rich friends don’t need that system, they are rich, they are neatly invested offshore. They, like Putin and any of his Russian mobster/international gangster friends, don’t need America except as a source of loot. The America they do need is one with a pliant, obedient, cheap and desperate workforce, eager to mow their vast lawns and do their laundry and clean their homes and wait silently at table. To do the work and expect very little. Who cares if they die younger? Let them die the moment they can’t do the work. The way they do in Russia.

So it really is about Russia. Very much so.

Angry 70 Year Old Man Barricaded In DC Mansion

We wake up every morning wondering if it’s still true. Is Trump still president. If a President Hillary Clinton had presided the way Trump has these 100+ days she’d be on her way out. Congress would have had bills of impeachment prepared before she’d given her victory speech on November 9th. The pitchforks and torches and nooses were out for Hillary from the moment she announced her candidacy. From that date on the Republican Congress had busied itself with hearings and subpoenas. The investigative committee chairs had installed a teleport to transport them quickly onto FoxNews the moment they left the floor.

Jason Chaffetz was one of the most dogged accusers. He never let up. His goal in life was to jail Hillary Clinton. When FBI director James Comey found “carelessness” but no criminality, the Republicans were furious. They felt betrayed, as if they had a contract promising them that the investigation would serve her up to them. The line in Alice In Wonderland is “Sentence First. Verdict Afterwards.” Jason Chaffetz embraced the role of the Red Queen. He’d turned his congressional seat into a prosecutor’s office, an inquisitor’s office.

So when the Trump presidency debuted with its own palpable and juicy prosecutable charges hung round the president’s and his staff’s necks you’d expect an eager prosecutor would get to work.

But Chaffetz seemed bored with the allegations against Trump. Betraying our country to Russia? Meh. Using the presidency to enrich himself? Who cares. Chaffetz’s response when asked about Trump’s many disturbing and possibly incriminating financial entanglements and the glaring conflicts of interest was especially peculiar:

“He’s already rich.”

Meaning? The only meaning we can deduce is that Jason Chaffetz and his fellow Republicans believe it’s OK for a rich person to engage in criminal behavior. A rich person is allowed to enrich himself further by illegal means. A rich person is allowed to turn the Oval Office into a moneymaking machine. When a relatively middle class person enters the White House, say a Bill Clinton, it’s a different matter. Then they investigate. Republicans are immune. Rich people are immune.

Reported in The New Yorker

Reported at greater length in The Atlantic

The danger Trump presents is increased because the Republicans in Congress are so craven, so obedient, so partisan. James Fallows writes about this in The Atlantic, giving five reasons why Kremlingate is worse than Watergate.

This article from The American Interest examines Trump’s Russia entanglements.

"Whatever the nature of President-elect Donald Trump’s relationship with President Putin, he has certainly managed to accumulate direct and indirect connections with a far-flung private Russian/FSU network of outright mobsters, oligarchs, fraudsters, and kleptocrats. Any one of these connections might have occurred at random. But the overall pattern is a veritable Star Wars bar scene of unsavory characters, with Donald Trump seated right in the middle. The analytical challenge is to map this network—a task that most journalists and law enforcement agencies, focused on individual cases, have failed to do.”

It appears that Donald Trump has been a very useful asset in a massive and long-running Russian money laundering scheme.

Vanity Fair explains why a note from your lawyer won’t get you off the hook, especially if that lawyer was named Russia’s Lawyer of the Year.

When I heard Trump promise that a “certified letter” would clear him of any wrongdoing I laughed. As if the Post Office, for an additional fee, will certify the truthfulness of a letter. (That joke appeared on SNL last night so I wasn’t the only one who thought of it.)

This Dutch documentary goes into Trump’s deep ties to Russian mobsters. All Russian mobsters still living operate as Putin henchmen.

Google Trump and Bayrock and Russia and you find some interesting stories, all about money laundering, the looting of the Russian economy, and the rescue of a bankrupt Trump over the years. There's more than one way to launder a ruble.

This one's from the Guardian.

The reliably conservative Chicago Tribune has this to say:

“We have the tin-pot leader whose vanity knows no bounds. We have the rapacious family feathering their nests without regard for the law or common decency. We have utter disregard for values at home and abroad, the disdain for democracy, the hunger for constraining a free press, the admiration for thugs and strongmen worldwide.”

The New Yorker's Amy Davidson analyzes the problems Trump created in his Lester Holt interview.

Trump’s business dealings are under scrutiny by the Senate. From the New Yorker.

Mother Jones gets down to the facts in the Russia story.

The White House staff meanwhile is in turmoil. Staffers responding with “Jesus!” when they see Trump’s latest tweets. From The Daily Beast.