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Iran Sanctions: Foreign Banks Kick Sand In Uncle Sam's Face - Forbes

Frankly, I'm glad there are a few nations who are willing to buck the U.S. led bullying sanctions against Iran. Of course, these sanctions impact the Iranian people severely. It is nice, also, to see Japan take baby steps to get out from under the political thumb of the U.S.

FORBES - 6/22/2013: As I have pointed out before in this space, much of the most shocking evidence of America’s weakening position in the world these days gets swept under the rug in the mainstream press. We had another instance last week when a Japanese bank was found to have egregiously flouted the American-led financial embargo on Iran. The bank, a subsidiary of Mitsubishi UFJ Financial Group (MUFG), allegedly routed no less than 28,000 payments, worth about $100 billion, on behalf of Iran and other blacklisted countries. In an earlier era, such a story would have led the network news bulletins and topped the front pages. Instead it passed almost unnoticed...

Of course, MUFG is not the only bank that has been caught sanctions-busting. Two London-based banks, HSBC and Standard Chartered, have also been named by New York regulators...

It is clear that though the U.S. Treasury has long known about MUFG’s sanctions-busting activities, it has taken a soft line. The problem is that the Treasury has the mother of all conflicts of interest: this is because it depends on Japanese purchases of U.S. bonds to finance about one-third of America’s gigantic current account deficits. Such purchases are subject to the Tokyo Ministry of Finance’s regulatory say-so. MUFG moreover enjoys formidable power elsewhere in the American system thanks not only to its ownership of UnionBank, one of California’s biggest banks, but to its more than one-fifth stake in Morgan Stanley. Basically the United States is now the 97-pound weakling of global finance and as such has little recourse as sand is kicked in its face.

http://www.forbes.com/sites/eamonnfingleton/2013/06/22/iran-...




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all right--

then. Waiting to hear more as it comes.

it's hard to be awake; it's easier to dream--

Misleading Statements Presented as Facts

I call BS. Forbes states, "The problem is that the Treasury has the mother of all conflicts of interest: this is because it depends on Japanese purchases of U.S. bonds to finance about one-third of America’s gigantic current account deficits." Hardly anyone aside from the FED buys US paper anymore. The UK, Australia and Ireland have increased their holdings over the last year along with some other groups but not nearly enough to cover the issues. Even "our great ally Israel" is selling.

Here's the US Treasury's own numbers.
http://www.treasury.gov/resource-center/data-chart-center/ti...

The reality is other countries are figuring out they can do as they please and the US is powerless to stop them short of bombing or invading them.

Good points

The FED is buying our paper as quickly as it rolls off the presses. Countries like China and Japan still hold huge amounts of our debt, but are also taking more independent measures to look out for their own economic interests, realizing just how fragile the house of cards really is. Obviously, they are learning/have learned that the U.S. isn't the only show in town!

It's A Shame

It's a shame that an organization such as Forbes can make statements such as these and they are accepted by many as fact. I wonder what happened to journalism. It seems "journalists" investigate nothing anymore. They simply recite the official line on an issue.