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from The Great Debate:

Common ground for Obama and Putin is offshore

Low expectations surround the G20 meeting in St. Petersburg on September 5-6.

President Barack Obama’s decision to cancel the pre-G20 summit with Russian President Vladimir Putin means the big photo op will likely be the two leaders awkwardly trying to avoid each other. The other headline-making issues in U.S.-Russian relations -- Syria, nuclear weapons reduction, missile defense -- also appear off the table now. There is one timely matter, however, that resonates with Washington, Moscow, and the entire G20 -- the continuing fight against offshore tax havens.

The Cyprus financial collapse in March focused world attention on the outsized role played by offshore banking zones in international tax avoidance and money laundering. Though Russian depositors were the primary victims here, Moscow appeared indifferent to this unprecedented expropriation by Cyprus of the assets of Russian citizens. Putin proved unwilling to help those he viewed as tax-evading oligarchs and corrupt bureaucrats -- as well as a few legitimate businesses.

Putin has made the fight against offshore tax havens a key plank of his foreign policy. Other world leaders -- including British Prime Minister David Cameron and French President Francoise Hollande -- have also issued strong statements criticizing sophisticated legal strategies that allow companies to skirt the domestic treasury, depriving the state of critical revenues in this time of economic recession.

The United States supports the global effort to rein in offshore tax havens and has gone one step further by passing the Foreign Account Tax Compliance Act (FATCA). This bill obliges foreign financial institutions to report on bank accounts of U.S. citizens abroad, with a threat of substantial withholding assessments for failing to do so.

from John Lloyd:

On Syria, England defects

Thursday’s British House of Commons vote against Britain aiding in a Syrian intervention led me to center on one question: what will happen to the U.S.-UK relationship? Is that alliance now gravely weakened? Can it survive in a meaningful form?

Specifically, will Britain ever again be able to partner with the United States in any future military interventions? Without Britain, the United States will certainly carry on. It has a new best friend in France -- french fries top of the menu now! -- and maybe Turkey will be willing, too. In the UK, Prime Minister Cameron says Britain will remain committed to mobilising opposition to the Assad regime, delivering humanitarian aid, and deploring the use of chemical weapons.

from David Rohde:

Has Iraq shackled American power?

In an extraordinary series of disclosures this week, Obama administration officials said that the United States will launch only cruise missile strikes in Syria. The attacks will last roughly two or three days. And the administration’s goal will be to punish President Bashar al-Assad, not remove him from power.

But those clear efforts to placate opponents of military action appear to be failing. Warnings of “another Iraq” are fueling opposition to the use of force on both sides of the Atlantic. And the Obama administration’s contradictory record on secrecy is coming back to haunt it.

from The Great Debate:

Obama on King, but in a passive voice

It was a sermon -- of sorts.

President Barack Obama’s address at the Lincoln Memorial on Wednesday only rarely echoed the cadence -- the preacher’s rhythm -- of the speech he was there to commemorate, and could not match its moral force. But this was a sermon all the same.

It was, to be precise, an exhortation against economic inequality -- a fitting message on the 50th anniversary of the March on Washington for Jobs and Freedom, and certainly in keeping with Martin Luther King Jr.’s dream.

from The Great Debate:

Fighting discrimination, as inequality grows

I grew up in the segregated South. I tell students the story of how, as a young boy, I went with my mother to Bloomberg's Department Store on High Street in Portsmouth, Virginia. There was a stack of doilies on the ladies' hat counter and I asked my mother what they were for. She explained that a black woman had to put a doily on her head before trying on a hat, because a white woman would not purchase a hat that had been on a black woman's head.

My students think I am making all this up. They refuse to believe such things were true. It is too absurd, they insist.

from The Great Debate:

King’s legacy in the Age of Obama

When President Barack Obama delivers a speech at the Lincoln Memorial Wednesday, on the 50th anniversary of the March on Washington, he will inevitably be compared to Martin Luther King Jr., whose oration that day framed the moral purpose of the civil rights movement.

But there are huge differences between the prophetic icon and the political prodigy that reveal the competing and, at times, conflicting demands of the vocations they embraced. If we fail to understand the difference between the two, we will never appreciate the arc of their social aspiration -- or fairly measure King and Obama’s achievements.

from The Great Debate:

NSA: Listening to everyone — except oversight

ILLUSTRATION: Matt Mahurin

For 35 years the Foreign Intelligence Surveillance Court has been the judicial equivalent of a stellar black hole -- everything goes in but nothing is allowed to escape.

Last week, however, for the first time since its creation, the Obama administration declassified and made public large portions of an 85-page top-secret ruling by the court that had been the subject of a Freedom of Information lawsuit by the Electronic Frontier Foundation.

from The Great Debate:

The Case Against Natural Gas Exports

President Barack Obama has made middle-class jobs and natural gas two of his top second-term policy objectives. Both could be undermined if his Department of Energy (DOE) continues to approve gas industry applications for exporting American gas.

There is already a move in Congress to remove DOE’s authority, so approvals can move even faster, and the oil and gas industry has thrown all its lobbying muscle behind this effort to steamroll through the permission process.

from David Rohde:

What failed in Pakistan won’t work in Egypt

 

As the Egyptian army continued its violent crackdown on the Muslim Brotherhood this week, White House officials said that the United States can’t cut off its $1.3 billion a year in aid to Egypt. To do so would cause Washington to lose “influence” with the country’s generals. Vital American security interests are at stake, they argued, and keeping the torrent of American aid flowing gives Washington leverage.

If that argument sounds familiar, it is. For the last decade, the United States has used the same logic in Pakistan. Washington has given $11 billion in military aid to the Pakistani army in the name of maintaining American “influence” in Islamabad. From new equipment to reimbursements for Pakistani military operations, the money flowed year after year, despite complaints from American officials that the Pakistanis were misusing funds and inflating bills.

from The Great Debate:

Rebuilding America’s high-wage economy

Good for President Barack Obama for emphasizing the need to restore America’s middle class. However, the actual proposals in his new summer offensive would not go very far toward that worthy goal.

America is moving, at an accelerating pace, toward an economy with tens of millions of poorly paid service jobs at one end, and a relatively small number of astronomically compensated financial jobs at the other. In between the fast food workers, who demonstrated this week for a living wage, and the hedge fund billionaires is a new creative class heavily based on the Internet. But the web entrepreneurs are too narrow a segment on which to rebuild a broad middle class.

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