blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche

By Michael Smith at Bloomberg:

Just before sunset on April 10, 2006, a DC-9 jet landed at the international airport in the port city of Ciudad del Carmen, 500 miles east of Mexico City. As soldiers on the ground approached the plane, the crew tried to shoo them away, saying there was a dangerous oil leak. So the troops grew suspicious and searched the jet.

They found 128 black suitcases, packed with 5.7 tons of cocaine, valued at $100 million. The stash was supposed to have been delivered from Caracas to drug traffickers in Toluca, near Mexico City, Mexican prosecutors later found. Law enforcement officials also discovered something else.

The smugglers had bought the DC-9 with laundered funds they transferred through two of the biggest banks in the U.S.: Wachovia Corp. and Bank of America Corp., Bloomberg Markets magazine reports in its August 2010 issue.

This was no isolated incident. Wachovia, it turns out, had made a habit of helping move money for Mexican drug smugglers. Wells Fargo & Co., which bought Wachovia in 2008, has admitted in court that its unit failed to monitor and report suspected money laundering by narcotics traffickers — including the cash used to buy four planes that shipped a total of 22 tons of cocaine.

The admission came in an agreement that Charlotte, North Carolina-based Wachovia struck with federal prosecutors in March, and it sheds light on the largely undocumented role of U.S. banks in contributing to the violent drug trade that has convulsed Mexico for the past four years.

The opening paragraph is a perfect example of excessively literary journalism. We don’t need to read about sunsets unless they’re relevant to the pilots’ tactics.


http://www.fredoneverything.net/Torch.shtml

A story once might have begun, “At midafternoon Thursday a house burned down at 112 Maples Street. Three children left unaccompanied inside escaped unhurt.” In the sensitive new journalism, the lead became, “Sally Harpooner, a single mother of three, saw a towering plume of smoke rising from her home as she returned from a community-sponsored drug-rehabilitation center. Her heart beat faster….” Before, a reporter would have said forget her heart, beat sally for being such a useless skell.

‘Blatant Disregard’

Wachovia admitted it didn’t do enough to spot illicit funds in handling $378.4 billion for Mexican-currency-exchange houses from 2004 to 2007. That’s the largest violation of the Bank Secrecy Act, an anti-money-laundering law, in U.S. history — a sum equal to one-third of Mexico’s current gross domestic product.

“Wachovia’s blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations,” says Jeffrey Sloman, the federal prosecutor who handled the case.

Since 2006, more than 22,000 people have been killed in drug-related battles that have raged mostly along the 2,000-mile (3,200-kilometer) border that Mexico shares with the U.S. In the Mexican city of Ciudad Juarez, just across the border from El Paso, Texas, 700 people had been murdered this year as of mid- June. Six Juarez police officers were slaughtered by automatic weapons fire in a midday ambush in April.

Rondolfo Torre, the leading candidate for governor in the Mexican border state of Tamaulipas, was gunned down yesterday, less than a week before elections in which violence related to drug trafficking was a central issue.

45,000 Troops

Mexican President Felipe Calderon vowed to crush the drug cartels when he took office in December 2006, and he’s since deployed 45,000 troops to fight the cartels. They’ve had little success.

Among the dead are police, soldiers, journalists and ordinary citizens. The U.S. has pledged Mexico $1.1 billion in the past two years to aid in the fight against narcotics cartels.

In May, President Barack Obama said he’d send 1,200 National Guard troops, adding to the 17,400 agents on the U.S. side of the border to help stem drug traffic and illegal immigration.

Behind the carnage in Mexico is an industry that supplies hundreds of tons of cocaine, heroin, marijuana and methamphetamines to Americans. The cartels have built a network of dealers in 231 U.S. cities from coast to coast, taking in about $39 billion in sales annually, according to the Justice Department.

‘You’re Missing the Point’

Twenty million people in the U.S. regularly use illegal drugs, spurring street crime and wrecking families. Narcotics cost the U.S. economy $215 billion a year — enough to cover health care for 30.9 million Americans — in overburdened courts, prisons and hospitals and lost productivity, the department says.

“It’s the banks laundering money for the cartels that finances the tragedy,” says Martin Woods, director of Wachovia’s anti-money-laundering unit in London from 2006 to 2009. Woods says he quit the bank in disgust after executives ignored his documentation that drug dealers were funneling money through Wachovia’s branch network.

“If you don’t see the correlation between the money laundering by banks and the 22,000 people killed in Mexico, you’re missing the point,” Woods says.

Cleansing Dirty Cash

Wachovia is just one of the U.S. and European banks that have been used for drug money laundering. For the past two decades, Latin American drug traffickers have gone to U.S. banks to cleanse their dirty cash, says Paul Campo, head of the U.S. Drug Enforcement Administration’s financial crimes unit.

Miami-based American Express Bank International paid fines in both 1994 and 2007 after admitting it had failed to spot and report drug dealers laundering money through its accounts. Drug traffickers used accounts at Bank of America in Oklahoma City to buy three planes that carried 10 tons of cocaine, according to Mexican court filings.

Federal agents caught people who work for Mexican cartels depositing illicit funds in Bank of America accounts in Atlanta, Chicago and Brownsville, Texas, from 2002 to 2009. Mexican drug dealers used shell companies to open accounts at London-based HSBC Holdings Plc, Europe’s biggest bank by assets, an investigation by the Mexican Finance Ministry found.

Following Rules

Those two banks weren’t accused of wrongdoing. Bank of America spokeswoman Shirley Norton and HSBC spokesman Roy Caple say laws bar them from discussing specific clients. They say their banks strictly follow the government rules.

“Bank of America takes its anti-money-laundering responsibilities very seriously,” Norton says.

A Mexican judge on Jan. 22 accused the owners of six centros cambiarios, or money changers, in Culiacan and Tijuana of laundering drug funds through their accounts at the Mexican units of Banco Santander SA, Citigroup Inc. and HSBC, according to court documents filed in the case.

The money changers are in jail while being tried. Citigroup, HSBC and Santander, which is the largest Spanish bank by assets, weren’t accused of any wrongdoing. The three banks say Mexican law bars them from commenting on the case, adding that they each carefully enforce anti-money-laundering programs.

HSBC has stopped accepting dollar deposits in Mexico, and Citigroup no longer allows noncustomers to change dollars there. Citigroup detected suspicious activity in the Tijuana accounts, reported it to regulators and closed the accounts, Citigroup spokesman Paulo Carreno says.

Criminal Empires

On June 15, the Mexican Finance Ministry announced it would set limits for banks on cash deposits in dollars.

Mexico’s drug cartels have become multinational criminal enterprises.

Some of the gangs have delved into other illegal activities such as gunrunning, kidnapping and smuggling people across the border, as well as into seemingly legitimate areas such as trucking, travel services and air cargo transport, according to the Justice Department’s National Drug Intelligence Center.

These criminal empires have no choice but to use the global banking system to finance their businesses, Mexican Senator Felipe Gonzalez says.

“With so much cash, the only way to move this money is through the banks,” says Gonzalez, who represents a central Mexican state and chairs the senate public safety committee.

Gonzalez, a member of Calderon’s National Action Party, carries a .38 revolver for personal protection.

“I know this won’t stop the narcos when they come through that door with machine guns,” he says, pointing to the entrance to his office. “But at least I’ll take one with me.”

Subprime Losses

No bank has been more closely connected with Mexican money laundering than Wachovia. Founded in 1879, Wachovia became the largest bank by assets in the southeastern U.S. by 1900. After the Great Depression, some people in North Carolina called the bank “Walk-Over-Ya” because it had foreclosed on farms in the region.

By 2008, Wachovia was the sixth-largest U.S. lender, and it faced $26 billion in losses from subprime mortgage loans. That cost Wachovia Chief Executive Officer Kennedy Thompson his job in June 2008.

Six months later, San Francisco-based Wells Fargo, which dates from 1852, bought Wachovia for $12.7 billion, creating the largest network of bank branches in the U.S. Thompson, who now works for private-equity firm Aquiline Capital Partners LLC in New York, declined to comment.

As Wachovia’s balance sheet was bleeding, its legal woes were mounting. In the three years leading up to Wachovia’s agreement with the Justice Department, grand juries served the bank with 6,700 subpoenas requesting information.

Not Quick Enough

The bank didn’t react quickly enough to the prosecutors’ requests and failed to hire enough investigators, the U.S. Treasury Department said in March. After a 22-month investigation, the Justice Department on March 12 charged Wachovia with violating the Bank Secrecy Act by failing to run an effective anti-money-laundering program.

Five days later, Wells Fargo promised in a Miami federal courtroom to revamp its detection systems. Wachovia’s new owner paid $160 million in fines and penalties, less than 2 percent of its $12.3 billion profit in 2009.

If Wells Fargo keeps its pledge, the U.S. government will, according to the agreement, drop all charges against the bank in March 2011.

Wells Fargo regrets that some of Wachovia’s former anti- money-laundering efforts fell short, spokeswoman Mary Eshet says. Wells Fargo has invested $42 million in the past three years to improve its anti-money-laundering program and has been working with regulators, she says.

‘Significantly Upgraded’

“We have substantially increased the caliber and number of staff in our international investigations group, and we also significantly upgraded the monitoring software,” Eshet says. The agreement bars the bank from contesting or contradicting the facts in its admission.

The bank declined to answer specific questions, including how much it made by handling $378.4 billion — including $4 billion of cash-from Mexican exchange companies.

The 1970 Bank Secrecy Act requires banks to report all cash transactions above $10,000 to regulators and to tell the government about other suspected money-laundering activity. Big banks employ hundreds of investigators and spend millions of dollars on software programs to scour accounts.

No big U.S. bank — Wells Fargo included — has ever been indicted for violating the Bank Secrecy Act or any other federal law. Instead, the Justice Department settles criminal charges by using deferred-prosecution agreements, in which a bank pays a fine and promises not to break the law again.

‘No Capacity to Regulate’

Large banks are protected from indictments by a variant of the too-big-to-fail theory.

Indicting a big bank could trigger a mad dash by investors to dump shares and cause panic in financial markets, says Jack Blum, a U.S. Senate investigator for 14 years and a consultant to international banks and brokerage firms on money laundering.

The theory is like a get-out-of-jail-free card for big banks, Blum says.

“There’s no capacity to regulate or punish them because they’re too big to be threatened with failure,” Blum says. “They seem to be willing to do anything that improves their bottom line, until they’re caught.”

Wachovia’s run-in with federal prosecutors hasn’t troubled investors. Wells Fargo’s stock traded at $30.86 on March 24, up 1 percent in the week after the March 17 agreement was announced.

Moving money is central to the drug trade — from the cash that people tape to their bodies as they cross the U.S.-Mexican border to the $100,000 wire transfers they send from Mexican exchange houses to big U.S. banks.

‘Doesn’t Stop Anyone’

In Tijuana, 15 miles south of San Diego, Gustavo Rojas has lived for a quarter of a century in a shack in the shadow of the 10-foot-high (3-meter-high) steel border fence that separates the U.S. and Mexico there. He points to holes burrowed under the barrier.

“They go across with drugs and come back with cash,” Rojas, 75, says. “This fence doesn’t stop anyone.”

Drug money moves back and forth across the border in an endless cycle. In the U.S., couriers take the cash from drug sales to Mexico — as much as $29 billion a year, according to U.S. Immigration and Customs Enforcement. That would be about 319 tons of $100 bills.

They hide it in cars and trucks to smuggle into Mexico. There, cartels pay people to deposit some of the cash into Mexican banks and branches of international banks. The narcos launder much of what’s left through money changers.

The Money Changers

Anyone who has been to Mexico is familiar with these street-corner money changers; Mexican regulators say there are at least 3,000 of them from Tijuana to Cancun, usually displaying large signs advertising the day’s dollar-peso exchange rate.

Mexican banks are regulated by the National Banking and Securities Commission, which has an anti-money-laundering unit; the money changers are policed by Mexico’s Tax Service Administration, which has no such unit.

By law, the money changers have to demand identification from anyone exchanging more than $500. They also have to report transactions higher than $5,000 to regulators.

The cartels get around these requirements by employing legions of individuals — including relatives, maids and gardeners — to convert small amounts of dollars into pesos or to make deposits in local banks. After that, cartels wire the money to a multinational bank.

The Smurfs

The people making the small money exchanges are known as Smurfs, after the cartoon characters.

“They can use an army of people like Smurfs and go through $1 million before lunchtime,” says Jerry Robinette, who oversees U.S. Immigration and Customs Enforcement operations along the border in east Texas.

The U.S. Treasury has been warning banks about big Mexican- currency-exchange firms laundering drug money since 1996. By 2004, many U.S. banks had closed their accounts with these companies, which are known as casas de cambio.

Wachovia ignored warnings by regulators and police, according to the deferred-prosecution agreement.

“As early as 2004, Wachovia understood the risk,” the bank admitted in court. “Despite these warnings, Wachovia remained in the business.”

One customer that Wachovia took on in 2004 was Casa de Cambio Puebla SA, a Puebla, Mexico-based currency-exchange company. Pedro Alatorre, who ran a Puebla branch in Mexico City, had created front companies for cartels, according to a pending Mexican criminal case against him.

Federal Indictment

A federal grand jury in Miami indicted Puebla, Alatorre and three other executives in February 2008 for drug trafficking and money laundering. In May 2008, the Justice Department sought extradition of the suspects, saying they used shell firms to launder $720 million through U.S. banks.

Alatorre has been in a Mexican jail for 2 1/2 years. He denies any wrongdoing, his lawyer Mauricio Moreno says. Alatorre has made no court-filed responses in the U.S.

During the period in which Wachovia admitted to moving money out of Mexico for Puebla, couriers carrying clear plastic bags stuffed with cash went to the branch Alatorre ran at the Mexico City airport, according to surveillance reports by Mexican police.

Alatorre opened accounts at HSBC on behalf of front companies, Mexican investigators found.

Puebla executives used the stolen identities of 74 people to launder money through Wachovia accounts, Mexican prosecutors say in court-filed reports.

‘Never Reported’

“Wachovia handled all the transfers, and they never reported any as suspicious,” says Jose Luis Marmolejo, a former head of the Mexican attorney general’s financial crimes unit who is now in private practice.

In November 2005 and January 2006, Wachovia transferred a total of $300,000 from Puebla to a Bank of America account in Oklahoma City, according to information in the Alatorre cases in the U.S. and Mexico.

Drug smugglers used the funds to buy the DC-9 through Oklahoma City aircraft broker U.S. Aircraft Titles Inc., according to financial records cited in the Mexican criminal case. U.S. Aircraft Titles President Sue White declined to comment.

On April 5, 2006, a pilot flew the plane from St. Petersburg, Florida, to Caracas to pick up the cocaine, according to the DEA. Five days later, troops seized the plane in Ciudad del Carmen and burned the drugs at a nearby army base.

‘Wachovia Knew’

“I am sure Wachovia knew what was going on,” says Marmolejo, who oversaw the criminal investigation into Wachovia’s customers. “It went on too long and they made too much money not to have known.”

At Wachovia’s anti-money-laundering unit in London, Woods and his colleague Jim DeFazio, in Charlotte, say they suspected that drug dealers were using the bank to move funds.

Woods, a former Scotland Yard investigator, spotted illegible signatures and other suspicious markings on traveler’s checks from Mexican exchange companies, he said in a September 2008 letter to the U.K. Financial Services Authority. He sent copies of the letter to the DEA and Treasury Department in the U.S.

Woods, 45, says his bosses instructed him to keep quiet and tried to have him fired, according to his letter to the FSA. In one meeting, a bank official insisted Woods shouldn’t have filed suspicious activity reports to the government, as both U.S. and U.K. laws require.

‘I Was Shocked’

“I was shocked by the content and outcome of the meeting and genuinely traumatized,” Woods wrote.

In the U.S., DeFazio, who had been a Federal Bureau of Investigation agent for 21 years, says he told bank executives in 2005 that the DEA was probing the transfers through Wachovia to buy the planes.

Bank executives spurned recommendations to close suspicious accounts, DeFazio, 63, says.

“I think they looked at the money and said, ‘The hell with it. We’re going to bring it in, and look at all the money we’ll make,’” DeFazio says.

DeFazio retired in 2008.

“I didn’t want anything from them,” he says. “I just wanted to get out.”

Woods, who resigned from Wachovia in May 2009, now advises banks on how to combat money laundering. He declined to discuss details of Wachovia’s actions.

U.S. Comptroller of the Currency John Dugan told Woods in a March 19 letter his efforts had helped the U.S. build its case against Wachovia.

‘Great Courage’

“You demonstrated great courage and integrity by speaking up when you saw problems,” Dugan wrote.

It was the Puebla investigation that led U.S. authorities to the broader probe of Wachovia. On May 16, 2007, DEA agents conducted a raid of Wachovia’s international banking offices in Miami. They had a court order to seize Puebla’s accounts.

U.S. prosecutors and investigators then scrutinized the bank’s dealings with Mexican-currency-exchange firms. That led to the March deferred-prosecution agreement.

With Puebla’s Wachovia accounts seized, Alatorre and his partners shifted their laundering scheme to HSBC, according to financial documents cited in the Mexican criminal case against Alatorre.

In the three weeks after the DEA raided Wachovia, two of Alatorre’s front companies, Grupo ETPB SA and Grupo Rahero SC, made 12 cash deposits totaling $1 million at an HSBC Mexican branch, Mexican investigators found.

Another Drug Plane

The funds financed a Beechcraft King Air 200 plane that police seized on Dec. 29, 2007, in Cuernavaca, 50 miles south of Mexico City, according to information in the case against Alatorre.

For years, federal authorities watched as the wife and daughter of Oscar Oropeza, a drug smuggler working for the Matamoros-based Gulf Cartel, deposited stacks of cash at a Bank of America branch on Boca Chica Boulevard in Brownsville, Texas, less than 3 miles from the border.

Investigator Robinette sits in his pickup truck across the street from that branch. It’s a one-story, tan stucco building next to a Kentucky Fried Chicken outlet. Robinette discusses the Oropeza case with Tom Salazar, an agent who investigated the family.

“Everybody in there knew who they were — the tellers, everyone,” Salazar says. “The bank never came to us, though.”

New Meaning

The Oropeza case gives a new, literal meaning to the term money laundering. Oropeza’s wife, Tina Marie, and daughter Paulina Marie deposited stashes of $20 bills several times a day into Bank of America accounts, Salazar says. Bank employees got to know the Oropezas by the smell of their money.

“I asked the tellers what they were talking about, and they said the money had this sweet smell like Bounce, those sheets you throw into the dryer,” Salazar says. “They told me that when they opened the vault, the smell of Bounce just poured out.”

Oropeza, 48, was arrested 820 miles from Brownsville. On May 31, 2007, police in Saraland, Alabama, stopped him on a traffic violation. Checking his record, they learned of the investigation in Texas.

They searched the van and discovered 84 kilograms (185 pounds) of cocaine hidden under a false floor. That allowed federal agents to freeze Oropeza’s bank accounts and search his marble-floored home in Brownsville, Robinette says. Inside, investigators found a supply of Bounce alongside the clothes dryer.

Guilty Pleas

All three Oropezas pleaded guilty in U.S. District Court in Brownsville to drug and money-laundering charges in March and April 2008. Oscar Oropeza was sentenced to 15 years in prison; his wife was ordered to serve 10 months and his daughter got 6 months.

Bank of America’s Norton says, “We not only fulfilled our regulatory obligation, but we proactively worked with law enforcement on these matters.”

Prosecutors have tried to halt money laundering at American Express Bank International twice. In 1994, the bank, then a subsidiary of New York-based American Express Co., pledged not to allow money laundering again after two employees were convicted in a criminal case involving drug trafficker Juan Garcia Abrego.

In 1994, the bank paid $14 million to settle. Five years later, drug money again flowed through American Express Bank. Between 1999 and 2004, the bank failed to stop clients from laundering $55 million of narcotics funds, the bank admitted in a deferred-prosecution agreement in August 2007.

Western Union

It paid $65 million to the U.S. and promised not to break the law again. The government dismissed the criminal charge a year later. American Express sold the bank to London-based Standard Chartered PLC in February 2008 for $823 million.

Banks aren’t the only financial institutions that have turned a blind eye to drug cartels in moving illicit funds. Western Union Co., the world’s largest money transfer firm, agreed to pay $94 million in February 2010 to settle civil and criminal investigations by the Arizona attorney general’s office.

Undercover state police posing as drug dealers bribed Western Union employees to illegally transfer money, says Cameron Holmes, an assistant attorney general.

“Their allegiance was to the smugglers,” Holmes says. “What they thought about during work was ‘How may I please my highest- spending customers the most?’”

Smudged Fingerprints

Workers in more than 20 Western Union offices allowed the customers to use multiple names, pass fictitious identifications and smudge their fingerprints on documents, investigators say in court records.

“In all the time we did undercover operations, we never once had a bribe turned down,” says Holmes, citing court affidavits.

Western Union has made significant improvements, it complies with anti-money-laundering laws and works closely with regulators and police, spokesman Tom Fitzgerald says.

For four years, Mexican authorities have been fighting a losing battle against the cartels. The police are often two steps behind the criminals. Near the southeastern corner of Texas, in Matamoros, more than 50 combat troops surround a police station.

Officers take two suspected drug traffickers inside for questioning. Nearby, two young men wearing white T-shirts and baggy pants watch and whisper into radios. These are los halcones (the falcons), whose job is to let the cartel bosses know what the police are doing.

‘Only Way’

While the police are outmaneuvered and outgunned, ordinary Mexicans live in fear. Rojas, the man who lives in the Tijuana slum near the border fence, recalls cowering in his home as smugglers shot it out with the police.

“The only way to survive is to stay out of the way and hope the violence, the bullets, don’t come for you,” Rojas says.

To make their criminal enterprises work, the drug cartels of Mexico need to move billions of dollars across borders. That’s how they finance the purchase of drugs, planes, weapons and safe houses, Senator Gonzalez says.

“They are multinational businesses, after all,” says Gonzalez, as he slowly loads his revolver at his desk in his Mexico City office. “And they cannot work without a bank.”

International gangs can use hawalas instead of Western banks!


http://www.bloomberg.com/news/2010-06-29/banks-financing-mexico-s-drug-cartels-admitted-in-wells-fargo-s-u-s-deal.html

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The American Spectator talks about Civil War Two

I think relatively few people remember Tom Chittum.

http://whitelocust.wordpress.com/2009/06/05/tom-chittum-civil-war-two-the-break-up-of-the-united-states-plus-map/

White Locust is a member of that small class of folks – but this post is not about White Locust, it’s about Angelo M. Codevilla’s article in The American Spectator, which seems to be a highbrow version of Tom Chittum’s “Civil War Two.”

As over-leveraged investment houses began to fail in September 2008, the leaders of the Republican and Democratic parties, of major corporations, and opinion leaders stretching from the National Review magazine (and the Wall Street Journal) on the right to the Nation magazine on the left, agreed that spending some $700 billion to buy the investors’ “toxic assets” was the only alternative to the U.S. economy’s “systemic collapse.” In this, President George W. Bush and his would-be Republican successor John McCain agreed with the Democratic candidate, Barack Obama. Many, if not most, people around them also agreed upon the eventual commitment of some 10 trillion nonexistent dollars in ways unprecedented in America. They explained neither the difference between the assets’ nominal and real values, nor precisely why letting the market find the latter would collapse America. The public objected immediately, by margins of three or four to one.

When this majority discovered that virtually no one in a position of power in either party or with a national voice would take their objections seriously, that decisions about their money were being made in bipartisan backroom deals with interested parties, and that the laws on these matters were being voted by people who had not read them, the term “political class” came into use. Then, after those in power changed their plans from buying toxic assets to buying up equity in banks and major industries but refused to explain why, when they reasserted their right to decide ad hoc on these and so many other matters, supposing them to be beyond the general public’s understanding, the American people started referring to those in and around government as the “ruling class.” And in fact Republican and Democratic office holders and their retinues show a similar presumption to dominate and fewer differences in tastes, habits, opinions, and sources of income among one another than between both and the rest of the country. They think, look, and act as a class.

I’ve been hearing Americans talk about “two puppets on the right and left hands of one puppetmaster” for at least fifteen years, possibly longer.

Never has there been so little diversity within America’s upper crust. Always, in America as elsewhere, some people have been wealthier and more powerful than others. But until our own time America’s upper crust was a mixture of people who had gained prominence in a variety of ways, who drew their money and status from different sources and were not predictably of one mind on any given matter. The Boston Brahmins, the New York financiers, the land barons of California, Texas, and Florida, the industrialists of Pittsburgh, the Southern aristocracy, and the hardscrabble politicians who made it big in Chicago or Memphis had little contact with one another. Few had much contact with government, and “bureaucrat” was a dirty word for all. So was “social engineering.” Nor had the schools and universities that formed yesterday’s upper crust imposed a single orthodoxy about the origins of man, about American history, and about how America should be governed. All that has changed.

Today’s ruling class, from Boston to San Diego, was formed by an educational system that exposed them to the same ideas and gave them remarkably uniform guidance, as well as tastes and habits. These amount to a social canon of judgments about good and evil, complete with secular sacred history, sins (against minorities and the environment), and saints. Using the right words and avoiding the wrong ones when referring to such matters — speaking the “in” language — serves as a badge of identity. Regardless of what business or profession they are in, their road up included government channels and government money because, as government has grown, its boundary with the rest of American life has become indistinct. Many began their careers in government and leveraged their way into the private sector. Some, e.g., Secretary of the Treasury Timothy Geithner, never held a non-government job. Hence whether formally in government, out of it, or halfway, America’s ruling class speaks the language and has the tastes, habits, and tools of bureaucrats. It rules uneasily over the majority of Americans not oriented to government.

The two classes have less in common culturally, dislike each other more, and embody ways of life more different from one another than did the 19th century’s Northerners and Southerners — nearly all of whom, as Lincoln reminded them, “prayed to the same God.” By contrast, while most Americans pray to the God “who created and doth sustain us,” our ruling class prays to itself as “saviors of the planet” and improvers of humanity. Our classes’ clash is over “whose country” America is, over what way of life will prevail, over who is to defer to whom about what. The gravity of such divisions points us, as it did Lincoln, to Mark’s Gospel: “if a house be divided against itself, that house cannot stand.”

One might call these groups “Christian” and “anti-Christian,” for lack of more precise terms.

The Political Divide

Important as they are, our political divisions are the iceberg’s tip. When pollsters ask the American people whether they are likely to vote Republican or Democrat in the next presidential election, Republicans win growing pluralities. But whenever pollsters add the preferences “undecided,” “none of the above,” or “tea party,” these win handily, the Democrats come in second, and the Republicans trail far behind. That is because while most of the voters who call themselves Democrats say that Democratic officials represent them well, only a fourth of the voters who identify themselves as Republicans tell pollsters that Republican officeholders represent them well. Hence officeholders, Democrats and Republicans, gladden the hearts of some one-third of the electorate — most Democratic voters, plus a few Republicans. This means that Democratic politicians are the ruling class’s prime legitimate representatives and that because Republican politicians are supported by only a fourth of their voters while the rest vote for them reluctantly, most are aspirants for a junior role in the ruling class. In short, the ruling class has a party, the Democrats. But some two-thirds of Americans — a few Democratic voters, most Republican voters, and all independents — lack a vehicle in electoral politics.

Sooner or later, well or badly, that majority’s demand for representation will be filled. Whereas in 1968 Governor George Wallace’s taunt “there ain’t a dime’s worth of difference” between the Republican and Democratic parties resonated with only 13.5 percent of the American people, in 1992 Ross Perot became a serious contender for the presidency (at one point he was favored by 39 percent of Americans vs. 31 percent for G.H.W. Bush and 25 percent for Clinton) simply by speaking ill of the ruling class. Today, few speak well of the ruling class. Not only has it burgeoned in size and pretense, but it also has undertaken wars it has not won, presided over a declining economy and mushrooming debt, made life more expensive, raised taxes, and talked down to the American people. Americans’ conviction that the ruling class is as hostile as it is incompetent has solidified. The polls tell us that only about a fifth of Americans trust the government to do the right thing. The rest expect that it will do more harm than good and are no longer afraid to say so.

While Europeans are accustomed to being ruled by presumed betters whom they distrust, the American people’s realization of being ruled like Europeans shocked this country into well nigh revolutionary attitudes. But only the realization was new. The ruling class had sunk deep roots in America over decades before 2008. Machiavelli compares serious political diseases to the Aetolian fevers — easy to treat early on while they are difficult to discern, but virtually untreatable by the time they become obvious.

The 1990s had a great deal of “pre-millennial” speculation; I heard Americans talking about conspiracy theories such as JFK and UFOs.

I discovered the one and only Jeff Rense during the 1990s, perhaps late in 1998.

From 2001-2008 was the Bush Regime, during which conspiracy theories became mainstream with the 9-11 Truth Movement. Obama is just a continuation of Bush.

The Ruling Class

Who are these rulers, and by what right do they rule? How did America change from a place where people could expect to live without bowing to privileged classes to one in which, at best, they might have the chance to climb into them? What sets our ruling class apart from the rest of us?

The most widespread answers — by such as the Times’s Thomas Friedman and David Brooks — are schlock sociology. …
What really distinguishes these privileged people demographically is that, whether in government power directly or as officers in companies, their careers and fortunes depend on government. They vote Democrat more consistently than those who live on any of America’s Dr. Martin Luther King Jr. Streets. These socioeconomic opposites draw their money and orientation from the same sources as the millions of teachers, consultants, and government employees in the middle ranks who aspire to be the former and identify morally with what they suppose to be the latter’s grievances.

Professional prominence or position will not secure a place in the class any more than mere money. In fact, it is possible to be an official of a major corporation or a member of the U.S. Supreme Court (just ask Justice Clarence Thomas), or even president (Ronald Reagan), and not be taken seriously by the ruling class. Like a fraternity, this class requires above all comity — being in with the right people, giving the required signs that one is on the right side, and joining in despising the Outs. Once an official or professional shows that he shares the manners, the tastes, the interests of the class, gives lip service to its ideals and shibboleths, and is willing to accommodate the interests of its senior members, he can move profitably among our establishment’s parts.

If, for example, you are Laurence Tribe in 1984, Harvard professor of law, leftist pillar of the establishment, you can “write” your magnum opus by using the products of your student assistant, Ron Klain. A decade later, after Klain admits to having written some parts of the book, and the other parts are found to be verbatim or paraphrases of a book published in 1974, you can claim (perhaps correctly) that your plagiarism was “inadvertent,” and you can count on the Law School’s dean, Elena Kagan, to appoint a committee including former and future Harvard president Derek Bok that issues a secret report that “closes” the incident. Incidentally, Kagan ends up a justice of the Supreme Court. Not one of these people did their jobs: the professor did not write the book himself, the assistant plagiarized instead of researching, the dean and the committee did not hold the professor accountable, and all ended up rewarded. By contrast, for example, learned papers and distinguished careers in climatology at MIT (Richard Lindzen) or UVA (S. Fred Singer) are not enough for their questions about “global warming” to be taken seriously. For our ruling class, identity always trumps.

Much less does membership in the ruling class depend on high academic achievement. To see something closer to an academic meritocracy consider France, where elected officials have little power, a vast bureaucracy explicitly controls details from how babies are raised to how to make cheese, and people get into and advance in that bureaucracy strictly by competitive exams. Hence for good or ill, France’s ruling class are bright people — certifiably. Not ours. But didn’t ours go to Harvard and Princeton and Stanford? Didn’t most of them get good grades? Yes. But while getting into the Ecole Nationale d’Administration or the Ecole Polytechnique or the dozens of other entry points to France’s ruling class requires outperforming others in blindly graded exams, and graduating from such places requires passing exams that many fail, getting into America’s “top schools” is less a matter of passing exams than of showing up with acceptable grades and an attractive social profile. American secondary schools are generous with their As. Since the 1970s, it has been virtually impossible to flunk out of American colleges. And it is an open secret that “the best” colleges require the least work and give out the highest grade point averages. No, our ruling class recruits and renews itself not through meritocracy but rather by taking into itself people whose most prominent feature is their commitment to fit in. The most successful neither write books and papers that stand up to criticism nor release their academic records. Thus does our ruling class stunt itself through negative selection. But the more it has dumbed itself down, the more it has defined itself by the presumption of intellectual superiority.

Ever since the Bay of Pigs, Americans have been talking about the dangers of “groupthink.” The ruling class has “groupthink” to an extreme.

The Faith

Its attitude is key to understanding our bipartisan ruling class. Its first tenet is that “we” are the best and brightest while the rest of Americans are retrograde, racist, and dysfunctional unless properly constrained. How did this replace the Founding generation’s paradigm that “all men are created equal”?

The notion of human equality was always a hard sell, because experience teaches us that we are so unequal in so many ways, and because making one’s self superior is so tempting that Lincoln called it “the old serpent, you work I’ll eat.” But human equality made sense to our Founding generation because they believed that all men are made in the image and likeness of God, because they were yearning for equal treatment under British law, or because they had read John Locke.

It did not take long for their paradigm to be challenged by interest and by “science.” By the 1820s, as J. C. Calhoun was reading in the best London journals that different breeds of animals and plants produce inferior or superior results, slave owners were citing the Negroes’ deficiencies to argue that they should remain slaves indefinitely. Lots of others were reading Ludwig Feuerbach’s rendition of Hegelian philosophy, according to which biblical injunctions reflect the fantasies of alienated human beings or, in the young Karl Marx’s formulation, that ethical thought is “superstructural” to material reality. By 1853, when Sen. John Pettit of Ohio called “all men are created equal” “a self-evident lie,” much of America’s educated class had already absorbed the “scientific” notion (which Darwin only popularized) that man is the product of chance mutation and natural selection of the fittest. Accordingly, by nature, superior men subdue inferior ones as they subdue lower beings or try to improve them as they please. Hence while it pleased the abolitionists to believe in freeing Negroes and improving them, it also pleased them to believe that Southerners had to be punished and reconstructed by force. As the 19th century ended, the educated class’s religious fervor turned to social reform: they were sure that because man is a mere part of evolutionary nature, man could be improved, and that they, the most highly evolved of all, were the improvers.

Thus began the Progressive Era. When Woodrow Wilson in 1914 was asked “can’t you let anything alone?” he answered with, “I let everything alone that you can show me is not itself moving in the wrong direction, but I am not going to let those things alone that I see are going down-hill.” Wilson spoke for the thousands of well-off Americans who patronized the spas at places like Chautauqua and Lake Mohonk. By such upper-middle-class waters, progressives who imagined themselves the world’s examples and the world’s reformers dreamt big dreams of establishing order, justice, and peace at home and abroad. Neither were they shy about their desire for power. Wilson was the first American statesman to argue that the Founders had done badly by depriving the U.S. government of the power to reshape American society. Nor was Wilson the last to invade a foreign country (Mexico) to “teach [them] to elect good men.”

By my reckoning, the USA was a Constitutional Republic until the War Between The States, then a Federal Republic until 23 December 1913, when Woodrow Wilson signed the Federal Reserve Act, and thus created the Federal Reserve System. Everything thereafter has been kleptocracy, but oddly enough, the USA military warfighters – or at least, their officers – swear an oath the uphold the Constitution!

The Constitution has been a flash-point of tension between the Christian Americans and the Anti-Christian kleptocrats for as long as I can recall. Certainly the incidents at Ruby Ridge and Waco brought the conflict into sharp relief. Apparently it has taken more than fifteen years for the Tea Party to wake up to this conflict.

World War I and the chaos at home and abroad that followed it discredited the Progressives in the American people’s eyes. Their international schemes had brought blood and promised more. Their domestic management had not improved Americans’ lives, but given them a taste of arbitrary government, including Prohibition. The Progressives, for their part, found it fulfilling to attribute the failure of their schemes to the American people’s backwardness, to something deeply wrong with America. The American people had failed them because democracy in its American form perpetuated the worst in humanity. Thus Progressives began to look down on the masses, to look on themselves as the vanguard, and to look abroad for examples to emulate.

The cultural divide between the “educated class” and the rest of the country opened in the interwar years. Some Progressives joined the “vanguard of the proletariat,” the Communist Party. Many more were deeply sympathetic to Soviet Russia, as they were to Fascist Italy and Nazi Germany. Not just the Nation, but also the New York Times and National Geographic found much to be imitated in these regimes because they promised energetically to transcend their peoples’ ways and to build “the new man.” Above all, our educated class was bitter about America. In 1925 the American Civil Liberties Union sponsored a legal challenge to a Tennessee law that required teaching the biblical account of creation. The ensuing trial, radio broadcast nationally, as well as the subsequent hit movie Inherit the Wind, were the occasion for what one might have called the Chautauqua class to drive home the point that Americans who believed in the Bible were willful ignoramuses. As World War II approached, some American Progressives supported the Soviet Union (and its ally, Nazi Germany) and others Great Britain and France. But Progressives agreed on one thing: the approaching war should be blamed on the majority of Americans, because they had refused to lead the League of Nations. Darryl Zanuck produced the critically acclaimed movie [Woodrow] Wilson featuring Cedric Hardwicke as Senator Henry Cabot Lodge, who allegedly brought on the war by appealing to American narrow-mindedness against Wilson’s benevolent genius.

Franklin Roosevelt brought the Chautauqua class into his administration and began the process that turned them into rulers. FDR described America’s problems in technocratic terms. America’s problems would be fixed by a “brain trust” (picked by him). His New Deal’s solutions — the alphabet-soup “independent” agencies that have run America ever since — turned many Progressives into powerful bureaucrats and then into lobbyists. As the saying goes, they came to Washington to do good, and stayed to do well.

As their number and sense of importance grew, so did their distaste for common Americans. Believing itself “scientific,” this Progressive class sought to explain its differences from its neighbors in “scientific” terms. The most elaborate of these attempts was Theodor Adorno’s widely acclaimed The Authoritarian Personality (1948). It invented a set of criteria by which to define personality traits, ranked these traits and their intensity in any given person on what it called the “F scale” (F for fascist), interviewed hundreds of Americans, and concluded that most who were not liberal Democrats were latent fascists. This way of thinking about non-Progressives filtered down to college curricula. In 1963-64 for example, I was assigned Herbert McCloskey’s Conservatism and Personality (1958) at Rutgers’s Eagleton Institute of Politics as a paradigm of methodological correctness. The author had defined conservatism in terms of answers to certain questions, had defined a number of personality disorders in terms of other questions, and run a survey that proved “scientifically” that conservatives were maladjusted ne’er-do-well ignoramuses. (My class project, titled “Liberalism and Personality,” following the same methodology, proved just as scientifically that liberals suffered from the very same social diseases, and even more amusing ones.)

The point is this: though not one in a thousand of today’s bipartisan ruling class ever heard of Adorno or McCloskey, much less can explain the Feuerbachian-Marxist notion that human judgments are “epiphenomenal” products of spiritual or material alienation, the notion that the common people’s words are, like grunts, mere signs of pain, pleasure, and frustration, is now axiomatic among our ruling class. They absorbed it osmotically, second — or thirdhand, from their education and from companions. Truly, after Barack Obama described his opponents’ clinging to “God and guns” as a characteristic of inferior Americans, he justified himself by pointing out he had said “what everybody knows is true.” Confident “knowledge” that “some of us, the ones who matter,” have grasped truths that the common herd cannot, truths that direct us, truths the grasping of which entitles us to discount what the ruled say and to presume what they mean, made our Progressives into a class long before they took power.

In William S. Lind’s terms, this is the story of how Cultural Marxism took over the levers of power in the USA. Since 23 December 1913, Cultural Marxism has appointed the elites.

“Give me control of a nation’s currency, and I care not who makes its laws”. -Baron Mayer Amschel de Rothschild-

“I believe that banking institutions are more dangerous than standing armies.” -Thomas Jefferson-

“If the people only understood the rank injustice of our money and banking system,
there would be a revolution before morning.”-Andrew Jackson-

“Since I entered politics, I have chiefly had men’s views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.” -Woodrow Wilson-

The Agenda: Power

Our ruling class’s agenda is power for itself. While it stakes its claim through intellectual-moral pretense, it holds power by one of the oldest and most prosaic of means: patronage and promises thereof. Like left-wing parties always and everywhere, it is a “machine,” that is, based on providing tangible rewards to its members. Such parties often provide rank-and-file activists with modest livelihoods and enhance mightily the upper levels’ wealth. Because this is so, whatever else such parties might accomplish, they must feed the machine by transferring money or jobs or privileges — civic as well as economic — to the party’s clients, directly or indirectly. This, incidentally, is close to Aristotle’s view of democracy. Hence our ruling class’s standard approach to any and all matters, its solution to any and all problems, is to increase the power of the government …. But there can be no doubt that such power and money makes Americans ever more dependent on those who wield it. …

Dependence Economics

By taxing and parceling out more than a third of what Americans produce, through regulations that reach deep into American life, our ruling class is making itself the arbiter of wealth and poverty. While the economic value of anything depends on sellers and buyers agreeing on that value as civil equals in the absence of force, modern government is about nothing if not tampering with civil equality. By endowing some in society with power to force others to sell cheaper than they would, and forcing others yet to buy at higher prices — even to buy in the first place — modern government makes valuable some things that are not, and devalues others that are. Thus if you are not among the favored guests at the table where officials make detailed lists of who is to receive what at whose expense, you are on the menu. Eventually, pretending forcibly that valueless things have value dilutes the currency’s value for all.

Which personnel will realize that they are “on the menu”? Will the physicians, for example, notice that the new health regulations dictate intolerable working conditions for health professionals?

Laws and regulations nowadays are longer than ever because length is needed to specify how people will be treated unequally. For example, the health care bill of 2010 takes more than 2,700 pages to make sure not just that some states will be treated differently from others because their senators offered key political support, but more importantly to codify bargains between the government and various parts of the health care industry, state governments, and large employers about who would receive what benefits (e.g., public employee unions and auto workers) and who would pass what indirect taxes onto the general public. The financial regulation bill of 2010, far from setting univocal rules for the entire financial industry in few words, spends some 3,000 pages (at this writing) tilting the field exquisitely toward some and away from others. Even more significantly, these and other products of Democratic and Republican administrations and Congresses empower countless boards and commissions arbitrarily to protect some persons and companies, while ruining others. Thus in 2008 the Republican administration first bailed out Bear Stearns, then let Lehman Brothers sink in the ensuing panic, but then rescued Goldman Sachs by infusing cash into its principal debtor, AIG. Then, its Democratic successor used similarly naked discretionary power (and money appropriated for another purpose) to give major stakes in the auto industry to labor unions that support it. Nowadays, the members of our ruling class admit that they do not read the laws. They don’t have to. Because modern laws are primarily grants of discretion, all anybody has to know about them is whom they empower.

By making economic rules dependent on discretion, our bipartisan ruling class teaches that prosperity is to be bought with the coin of political support. Thus in the 1990s and 2000s, as Democrats and Republicans forced banks to make loans for houses to people and at rates they would not otherwise have considered, builders and investors had every reason to make as much money as they could from the ensuing inflation of housing prices. When the bubble burst, only those connected with the ruling class at the bottom and at the top were bailed out. Similarly, by taxing the use of carbon fuels and subsidizing “alternative energy,” our ruling class created arguably the world’s biggest opportunity for making money out of things that few if any would buy absent its intervention. The ethanol industry and its ensuing diversions of wealth exist exclusively because of subsidies. The prospect of legislation that would put a price on carbon emissions and allot certain amounts to certain companies set off a feeding frenzy among large companies to show support for a “green agenda,” because such allotments would be worth tens of billions of dollars. That is why companies hired some 2,500 lobbyists in 2009 to deepen their involvement in “climate change.” At the very least, such involvement profits them by making them into privileged collectors of carbon taxes. Any “green jobs” thus created are by definition creatures of subsidies — that is, of privilege. What effect creating such privileges may have on “global warming” is debatable. But it surely increases the number of people dependent on the ruling class, and teaches Americans that satisfying that class is a surer way of making a living than producing goods and services that people want to buy.

Beyond patronage, picking economic winners and losers redirects the American people’s energies to tasks that the political class deems more worthy than what Americans choose for themselves. John Kenneth Galbraith’s characterization of America as “private wealth amidst public squalor” (The Affluent Society, 1958) has ever encapsulated our best and brightest’s complaint: left to themselves, Americans use land inefficiently in suburbs and exurbs, making it necessary to use energy to transport them to jobs and shopping. Americans drive big cars, eat lots of meat as well as other unhealthy things, and go to the doctor whenever they feel like it. Americans think it justice to spend the money they earn to satisfy their private desires even though the ruling class knows that justice lies in improving the community and the planet. The ruling class knows that Americans must learn to live more densely and close to work, that they must drive smaller cars and change their lives to use less energy, that their dietary habits must improve, that they must accept limits in how much medical care they get, that they must divert more of their money to support people, cultural enterprises, and plans for the planet that the ruling class deems worthier. So, ever-greater taxes and intrusive regulations are the main wrenches by which the American people can be improved (and, yes, by which the ruling class feeds and grows).

The 2010 medical law is a template for the ruling class’s economic modus operandi: the government taxes citizens to pay for medical care and requires citizens to purchase health insurance. The money thus taken and directed is money that the citizens themselves might have used to pay for medical care. In exchange for the money, the government promises to provide care through its “system.” But then all the boards, commissions, guidelines, procedures, and “best practices” that constitute “the system” become the arbiters of what any citizen ends up getting. The citizen might end up dissatisfied with what “the system” offers. But when he gave up his money, he gave up the power to choose, and became dependent on all the boards and commissions that his money also pays for and that raise the cost ofcare. Similarly, in 2008 the House Ways and Means Committee began considering a plan to force citizens who own Individual Retirement Accounts (IRAs) to transfer those funds into government-run “guaranteed retirement accounts.” If the government may force citizens to buy health insurance, by what logic can it not force them to trade private ownership and control of retirement money for a guarantee as sound as the government itself? Is it not clear that the government knows more about managing retirement income than individuals?

Lind would say that the government knows more about looting the public coffers than the citizens, and that the last act of any government is to loot the public treasury.

Who Depends on Whom?

In Congressional Government (1885) Woodrow Wilson left no doubt: the U.S. Constitution prevents the government from meeting the country’s needs by enumerating rights that the government may not infringe. (“Congress shall make no law…” says the First Amendment, typically.) Our electoral system, based on single member districts, empowers individual voters at the expense of “responsible parties.” Hence the ruling class’s perpetual agenda has been to diminish the role of the citizenry’s elected representatives, enhancing that of party leaders as well as of groups willing to partner in the government’s plans, and to craft a “living” Constitution in which restrictions on government give way to “positive rights” — meaning charters of government power.

Consider representation. Following Wilson, American Progressives have always wanted to turn the U.S. Congress from the role defined by James Madison’s Federalist #10, “refine and enlarge the public’s view,” to something like the British Parliament, which ratifies government actions. Although Britain’s electoral system — like ours, single members elected in historic districts by plurality vote — had made members of Parliament responsive to their constituents in ancient times, by Wilson’s time the growing importance of parties made MPs beholden to party leaders. Hence whoever controls the majority party controls both Parliament and the government.

In America, the process by which party has become (almost) as important began with the Supreme Court’s 1962 decision in Baker v. Carr which, by setting the single standard “one man, one vote” for congressional districts, ended up legalizing the practice of “gerrymandering,” concentrating the opposition party’s voters into as few districts as possible while placing one’s own voters into as many as possible likely to yield victories. Republican and Democratic state legislatures have gerrymandered for a half century. That is why today’s Congress consists more and more of persons who represent their respective party establishments — not nearly as much as in Britain, but heading in that direction. Once districts are gerrymandered “safe” for one party or another, the voters therein count less because party leaders can count more on elected legislators to toe the party line.

To the extent party leaders do not have to worry about voters, they can choose privileged interlocutors, representing those in society whom they find most amenable. In America ever more since the 1930s — elsewhere in the world this practice is ubiquitous and long-standing — government has designated certain individuals, companies, and organizations within each of society’s sectors as (junior) partners in elaborating laws and administrative rules for those sectors. The government empowers the persons it has chosen over those not chosen, deems them the sector’s true representatives, and rewards them. They become part of the ruling class.

I would have like to have seen more explanation of Federalist #10, and the role of “states’ rights,” but I suppose I am going to have to do my own reading on those topics.

Thus in 2009-10 the American Medical Association (AMA) strongly supported the new medical care law, which the administration touted as having the support of “the doctors” even though the vast majority of America’s 975,000 physicians opposed it. Those who run the AMA, however, have a government contract as exclusive providers of the codes by which physicians and hospitals bill the government for their services. The millions of dollars that flow thereby to the AMA’s officers keep them in line, while the impracticality of doing without the billing codes tamps down rebellion in the doctor ranks. When the administration wanted to bolster its case that the state of Arizona’s enforcement of federal immigration laws was offensive to Hispanics, the National Association of Chiefs of Police — whose officials depend on the administration for their salaries — issued a statement that the laws would endanger all Americans by raising Hispanics’ animosity. This reflected conversations with the administration rather than a vote of the nation’s police chiefs.

Similarly, modern labor unions are ever less bunches of workers banding together and ever more bundled under the aegis of an organization chosen jointly by employers and government. Prototypical is the Service Employees International Union, which grew spectacularly by persuading managers of government agencies as well as of publicly funded private entities that placing their employees in the SEIU would relieve them of responsibility. Not by being elected by workers’ secret ballots did the SEIU conquer workplace after workplace, but rather by such deals, or by the union presenting what it claims are cards from workers approving of representation. The union gets 2 percent of the workers’ pay, which it recycles as contributions to the Democratic Party, which it recycles in greater power over public employees. The union’s leadership is part of the ruling class’s beating heart.

The point is that a doctor, a building contractor, a janitor, or a schoolteacher counts in today’s America insofar as he is part of the hierarchy of a sector organization affiliated with the ruling class. Less and less do such persons count as voters.

Ordinary people have also gone a long way toward losing equal treatment under law. The America described in civics books, in which no one could be convicted or fined except by a jury of his peers for having violated laws passed by elected representatives, started disappearing when the New Deal inaugurated today’s administrative state — in which bureaucrats make, enforce, and adjudicate nearly all the rules. Today’s legal — administrative texts are incomprehensibly detailed and freighted with provisions crafted exquisitely to affect equal individuals unequally. The bureaucrats do not enforce the rules themselves so much as whatever “agency policy” they choose to draw from them in any given case. If you protest any “agency policy” you will be informed that it was formulated with input from “the public.” But not from the likes of you.

Selective enforcement of complex laws amounts to what Sam Francis called “anarcho-tyranny.”

Disregard for the text of laws — for the dictionary meaning of words and the intentions of those who wrote them — in favor of the decider’s discretion has permeated our ruling class from the Supreme Court to the lowest local agency. Ever since Oliver Wendell Holmes argued in 1920 (Missouri v. Holland) that presidents, Congresses, and judges could not be bound by the U.S. Constitution regarding matters that the people who wrote and ratified it could not have foreseen, it has become conventional wisdom among our ruling class that they may transcend the Constitution while pretending allegiance to it. They began by stretching such constitutional terms as “interstate commerce” and “due process,” then transmuting others, e.g., “search and seizure,” into “privacy.” Thus in 1973 the Supreme Court endowed its invention of “privacy” with a “penumbra” that it deemed “broad enough to encompass a woman’s decision whether or not to terminate her pregnancy.” The court gave no other constitutional reasoning, period. Perfunctory to the point of mockery, this constitutional talk was to reassure the American people that the ruling class was acting within the Constitution’s limitations. By the 1990s federal courts were invalidating amendments to state constitutions passed by referenda to secure the “positive rights” they invent, because these expressions of popular will were inconsistent with the constitution they themselves were construing.

By 2010 some in the ruling class felt confident enough to dispense with the charade. Asked what in the Constitution allows Congress and the president to force every American to purchase health insurance, House Speaker Nancy Pelosi replied: “Are you kidding? Are you kidding?” No surprise then that lower court judges and bureaucrats take liberties with laws, regulations, and contracts. That is why legal words that say you are in the right avail you less in today’s America than being on the right side of the persons who decide what they want those words to mean.

As the discretionary powers of officeholders and of their informal entourages have grown, the importance of policy and of law itself is declining, citizenship is becoming vestigial, and the American people become ever more dependent.

Of course, those who are not dependent are dispossessed and coerced into grudging obedience by threats of force.

Disaggregating and Dispiriting

The ruling class is keener to reform the American people’s family and spiritual lives than their economic and civic ones. In no other areas is the ruling class’s self-definition so definite, its contempt for opposition so patent, its Kulturkampf so open. It believes that the Christian family (and the Orthodox Jewish one too) is rooted in and perpetuates the ignorance commonly called religion, divisive social prejudices, and repressive gender roles, that it is the greatest barrier to human progress because it looks to its very particular interest — often defined as mere coherence against outsiders who most often know better. Thus the family prevents its members from playing their proper roles in social reform. Worst of all, it reproduces itself.

Since marriage is the family’s fertile seed, government at all levels, along with “mainstream” academics and media, have waged war on it. They legislate, regulate, and exhort in support not of “the family” — meaning married parents raising children — but rather of “families,” meaning mostly households based on something other than marriage. The institution of no-fault divorce diminished the distinction between cohabitation and marriage — except that husbands are held financially responsible for the children they father, while out-of-wedlock fathers are not. The tax code penalizes marriage and forces those married couples who raise their own children to subsidize “child care” for those who do not. Top Republicans and Democrats have also led society away from the very notion of marital fidelity by precept as well as by parading their affairs. For example, in 1997 the Democratic administration’s secretary of defense and the Republican Senate’s majority leader (joined by the New York Times et al.) condemned the military’s practice of punishing officers who had extramarital affairs. While the military had assumed that honoring marital vows is as fundamental to the integrity of its units as it is to that of society, consensus at the top declared that insistence on fidelity is “contrary to societal norms.” Not surprisingly, rates of marriage in America have decreased as out-of-wedlock births have increased. The biggest demographic consequence has been that about one in five of all households are women alone or with children, in which case they have about a four in 10 chance of living in poverty. Since unmarried mothers often are or expect to be clients of government services, it is not surprising that they are among the Democratic Party’s most faithful voters.

While our ruling class teaches that relationships among men, women, and children are contingent, it also insists that the relationship between each of them and the state is fundamental. That is why such as Hillary Clinton have written law review articles and books advocating a direct relationship between the government and children, effectively abolishing the presumption of parental authority. Hence whereas within living memory school nurses could not administer an aspirin to a child without the parents’ consent, the people who run America’s schools nowadays administer pregnancy tests and ship girls off to abortion clinics without the parents’ knowledge. Parents are not allowed to object to what their children are taught. But the government may and often does object to how parents raise children. The ruling class’s assumption is that what it mandates for children is correct ipso facto, while what parents do is potentially abusive. It only takes an anonymous accusation of abuse for parents to be taken away in handcuffs until they prove their innocence. Only sheer political weight (and in California, just barely) has preserved parents’ right to homeschool their children against the ruling class’s desire to accomplish what Woodrow Wilson so yearned: “to make young gentlemen as unlike their fathers as possible.”

Be careful what you wish for. Young gentlemen who are unlike their law-abiding fathers may become a threat to the safety of the state.

At stake are the most important questions: What is the right way for human beings to live? By what standard is anything true or good? Who gets to decide what? Implicit in Wilson’s words and explicit in our ruling class’s actions is the dismissal, as the ways of outdated “fathers,” of the answers that most Americans would give to these questions. This dismissal of the American people’s intellectual, spiritual, and moral substance is the very heart of what our ruling class is about. Its principal article of faith, its claim to the right to decide for others, is precisely that it knows things and operates by standards beyond others’ comprehension.

While the unenlightened ones believe that man is created in the image and likeness of God and that we are subject to His and to His nature’s laws, the enlightened ones know that we are products of evolution, driven by chance, the environment, and the will to primacy. While the un-enlightened are stuck with the antiquated notion that ordinary human minds can reach objective judgments about good and evil, better and worse through reason, the enlightened ones know that all such judgments are subjective and that ordinary people can no more be trusted with reason than they can with guns. Because ordinary people will pervert reason with ideology, religion, or interest, science is “science” only in the “right” hands. Consensus among the right people is the only standard of truth. Facts and logic matter only insofar as proper authority acknowledges them.

That is why the ruling class is united and adamant about nothing so much as its right to pronounce definitive, “scientific” judgment on whatever it chooses. When the government declares, and its associated press echoes that “scientists say” this or that, ordinary people — or for that matter scientists who “don’t say,” or are not part of the ruling class — lose any right to see the information that went into what “scientists say.” Thus when Virginia’s attorney general subpoenaed the data by which Professor Michael Mann had concluded, while paid by the state of Virginia, that the earth’s temperatures are rising “like a hockey stick” from millennial stability — a conclusion on which billions of dollars’ worth of decisions were made — to investigate the possibility of fraud, the University of Virginia’s faculty senate condemned any inquiry into “scientific endeavor that has satisfied peer review standards” claiming that demands for data “send a chilling message to scientists…and indeed scholars in any discipline.” The Washington Post editorialized that the attorney general’s demands for data amounted to “an assault on reason.” The fact that the “hockey stick” conclusion stands discredited and Mann and associates are on record manipulating peer review, the fact that science-by-secret-data is an oxymoron, the very distinction between truth and error, all matter far less to the ruling class than the distinction between itself and those they rule.

By identifying science and reason with themselves, our rulers delegitimize opposition. Though they cannot prevent Americans from worshiping God, they can make it as socially disabling as smoking — to be done furtively and with a bad social conscience. Though they cannot make Americans wish they were Europeans, they continue to press upon this nation of refugees from the rest of the world the notion that Americans ought to live by “world standards.” Each day, the ruling class produces new “studies” that show that one or another of Americans’ habits is in need of reform, and that those Americans most resistant to reform are pitiably, perhaps criminally, wrong. Thus does it go about disaggregating and dispiriting the ruled.

However, by attempting to delegitimize all opposition, the ever-growing government makes enemies. Anyone who feels wrong by government might entertain anarchistic ideas. The various Americans who feel oppressed by government make common cause with fellow citizens. And suddenly the Tea Parties are chanting that 9-11 was an inside job.

Meddling and Apologies

America’s best and brightest believe themselves qualified and duty bound to direct the lives not only of Americans but of foreigners as well. …

Because our ruling class deems unsophisticated the American people’s perennial preference for decisive military action or none, its default solution to international threats has been to commit blood and treasure to long-term, twilight efforts to reform the world’s Vietnams, Somalias, Iraqs, and Afghanistans, believing that changing hearts and minds is the prerequisite of peace and that it knows how to change them. The apparently endless series of wars in which our ruling class has embroiled America, wars that have achieved nothing worthwhile at great cost in lives and treasure, has contributed to defining it, and to discrediting it — but not in its own eyes.

Incidentally, such wars have built the Military portions of the Military-Industrial Complex. After Vietnam, there have been few Smedley Butlers, and many professional soldiers who are willing to support an ever-growing state so long as the military gets ever-growing bases, budgets, etc.

Rather, even as our ruling class has lectured, cajoled, and sometimes intruded violently to reform foreign countries in its own image, it has apologized to them for America not having matched that image — their private image. Woodrow Wilson began this double game in 1919, when he assured Europe’s peoples that America had mandated him to demand their agreement to Article X of the peace treaty (the League of Nations) and then swore to the American people that Article X was the Europeans’ non-negotiable demand. The fact that the U.S. government had seized control of transatlantic cable communications helped hide (for a while) that the League scheme was merely the American Progressives’ private dream. In our time, this double game is quotidian on the evening news. Notably, President Obama apologized to Europe because “the United States has fallen short of meeting its responsibilities” to reduce carbon emissions by taxation. But the American people never assumed such responsibility, and oppose doing so. Hence President Obama was not apologizing for anything that he or anyone he respected had done, but rather blaming his fellow Americans for not doing what he thinks they should do while glossing over the fact that the Europeans had done the taxing but not the reducing. Wilson redux.

Similarly, Obama “apologized” to Europeans because some Americans — not him and his friends — had shown “arrogance and been dismissive” toward them, and to the world because President Truman had used the atom bomb to end World War II. So President Clinton apologized to Africans because some Americans held African slaves until 1865 and others were mean to Negroes thereafter — not himself and his friends, of course. So assistant secretary of state Michael Posner apologized to Chinese diplomats for Arizona’s law that directs police to check immigration status. Republicans engage in that sort of thing as well: former Soviet dictator Mikhail Gorbachev tells us that in 1987 then vice president George H. W. Bush distanced himself from his own administration by telling him, “Reagan is a conservative, an extreme conservative. All the dummies and blockheads are with him…” This is all about a class of Americans distinguishing itself from its inferiors. It recalls the Pharisee in the Temple: “Lord, I thank thee that I am not like other men…”

In sum, our ruling class does not like the rest of America. Most of all does it dislike that so many Americans think America is substantially different from the rest of the world and like it that way. For our ruling class, however, America is a work in progress, just like the rest the world, and they are the engineers.

The Anti-Christian portion of the nation prays in the manner of the Pharisees, Christ’s enemies… what an interesting and obscure cultural observation.

The Country Class

Describing America’s country class is problematic because it is so heterogeneous. It has no privileged podiums, and speaks with many voices, often inharmonious. It shares above all the desire to be rid of rulers it regards inept and haughty. It defines itself practically in terms of reflexive reaction against the rulers’ defining ideas and proclivities — e.g., ever higher taxes and expanding government, subsidizing political favorites, social engineering, approval of abortion, etc. Many want to restore a way of life largely superseded. Demographically, the country class is the other side of the ruling class’s coin: its most distinguishing characteristics are marriage, children, and religious practice. While the country class, like the ruling class, includes the professionally accomplished and the mediocre, geniuses and dolts, it is different because of its non-orientation to government and its members’ yearning to rule themselves rather than be ruled by others.

Even when members of the country class happen to be government officials or officers of major corporations, their concerns are essentially private; in their view, government owes to its people equal treatment rather than action to correct what anyone perceives as imbalance or grievance. Hence they tend to oppose special treatment, whether for corporations or for social categories. Rather than gaming government regulations, they try to stay as far from them as possible. Thus the Supreme Court’s 2005 decision in Kelo, which allows the private property of some to be taken by others with better connections to government, reminded the country class that government is not its friend.

Negative orientation to privilege distinguishes the corporate officer who tries to keep his company from joining the Business Council of large corporations who have close ties with government from the fellow in the next office. The first wants the company to grow by producing. The second wants it to grow by moving to the trough. It sets apart the schoolteacher who resents the union to which he is forced to belong for putting the union’s interests above those of parents who want to choose their children’s schools. In general, the country class includes all those in stations high and low who are aghast at how relatively little honest work yields, by comparison with what just a little connection with the right bureaucracy can get you. It includes those who take the side of outsiders against insiders, of small institutions against large ones, of local government against the state or federal. The country class is convinced that big business, big government, and big finance are linked as never before and that ordinary people are more unequal than ever.

Members of the country class who want to rise in their profession through sheer competence try at once to avoid the ruling class’s rituals while guarding against infringing its prejudices. Averse to wheedling, they tend to think that exams should play a major role in getting or advancing in jobs, that records of performance — including academic ones — should be matters of public record, and that professional disputes should be settled by open argument. For such people, the Supreme Court’s 2009 decision in Ricci, upholding the right of firefighters to be promoted according to the results of a professional exam, revived the hope that competence may sometimes still trump political connections.

Nothing has set the country class apart, defined it, made it conscious of itself, given it whatever coherence it has, so much as the ruling class’s insistence that people other than themselves are intellectually and hence otherwise humanly inferior. Persons who were brought up to believe themselves as worthy as anyone, who manage their own lives to their own satisfaction, naturally resent politicians of both parties who say that the issues of modern life are too complex for any but themselves. Most are insulted by the ruling class’s dismissal of opposition as mere “anger and frustration” — an imputation of stupidity — while others just scoff at the claim that the ruling class’s bureaucratic language demonstrates superior intelligence. A few ask the fundamental question: Since when and by what right does intelligence trump human equality? Moreover, if the politicians are so smart, why have they made life worse?

The country class actually believes that America’s ways are superior to the rest of the world’s, and regards most of mankind as less free, less prosperous, and less virtuous. Thus while it delights in croissants and thinks Toyota’s factory methods are worth imitating, it dislikes the idea of adhering to “world standards.” This class also takes part in the U.S. armed forces body and soul: nearly all the enlisted, non-commissioned officers and officers under flag rank belong to this class in every measurable way. Few vote for the Democratic Party. You do not doubt that you are amidst the country class rather than with the ruling class when the American flag passes by or “God Bless America” is sung after seven innings of baseball, and most people show reverence. The same people wince at the National Football League’s plaintive renditions of the “Star Spangled Banner.”

Unlike the ruling class, the country class does not share a single intellectual orthodoxy, set of tastes, or ideal lifestyle. Its different sectors draw their notions of human equality from different sources: Christians and Jews believe it is God’s law. Libertarians assert it from Hobbesian and Darwinist bases. Many consider equality the foundation of Americanism. Others just hate snobs. Some parts of the country class now follow the stars and the music out of Nashville, Tennessee, and Branson, Missouri — entertainment complexes larger than Hollywood’s — because since the 1970s most of Hollywood’s products have appealed more to the mores of the ruling class and its underclass clients than to those of large percentages of Americans. The same goes for “popular music” and television. For some in the country class Christian radio and TV are the lodestone of sociopolitical taste, while the very secular Fox News serves the same purpose for others. While symphonies and opera houses around the country, as well as the stations that broadcast them, are firmly in the ruling class’s hands, a considerable part of the country class appreciates these things for their own sake. By that very token, the country class’s characteristic cultural venture — the homeschool movement — stresses the classics across the board in science, literature, music, and history even as the ruling class abandons them.

One might observe that the Country Class is remarkably White. It is odd that such ethnographic bromides evade the writer’s notice.

Congruent Agendas?

Each of the country class’s diverse parts has its own agenda, which flows from the peculiar ways in which the ruling class impacts its concerns. Independent businesspeople are naturally more sensitive to the growth of privileged relations between government and their competitors. Persons who would like to lead their community rue the advantages that Democratic and Republican party establishments are accruing. Parents of young children and young women anxious about marriage worry that cultural directives from on high are dispelling their dreams. The faithful to God sense persecution. All resent higher taxes and loss of freedom. More and more realize that their own agenda’s advancement requires concerting resistance to the ruling class across the board.

Not being at the table when government makes the rules about how you must run your business, knowing that you will be required to pay more, work harder, and show deference for the privilege of making less money, is the independent businessman’s nightmare. But what to do about it? In our time the interpenetration of government and business — the network of subsidies, preferences, and regulations — is so thick and deep, the people “at the table” receive and recycle into politics so much money, that independent businesspeople cannot hope to undo any given regulation or grant of privilege. Just as no manufacturer can hope to reduce the subsidies that raise his fuel costs, no set of doctors can shield themselves from the increased costs and bureaucracy resulting from government mandates. Hence independent business’s agenda has been to resist the expansion of government in general, and of course to reduce taxes. Pursuit of this agenda with arguments about economic efficiency and job creation — and through support of the Republican Party — usually results in enough relief to discourage more vigorous remonstrance. Sometimes, however, the economic argument is framed in moral terms: “The sum of good government,” said Thomas Jefferson, is not taking “from the mouth of labor the bread it has earned.” For government to advantage some at others’ expense, said he, “is to violate arbitrarily the first principle of association.” In our time, more and more independent businesspeople have come to think of their economic problems in moral terms. But few realize how revolutionary that is.

When small businessmen talk about the morality of traditional property, it’s a counter-revolution against a Gramscian revolution.

As bureaucrats and teachers’ unions disempowered neighborhood school boards, while the governments of towns, counties, and states were becoming conduits for federal mandates, as the ruling class reduced the number and importance of things that American communities could decide for themselves, America’s thirst for self-governance reawakened. The fact that public employees are almost always paid more and have more generous benefits than the private sector people whose taxes support them only sharpened the sense among many in the country class that they now work for public employees rather than the other way around. But how to reverse the roles? How can voters regain control of government? Restoring localities’ traditional powers over schools, including standards, curriculum, and prayer, would take repudiating two generations of Supreme Court rulings. So would the restoration of traditional “police” powers over behavior in public places. Bringing public employee unions to heel is only incidentally a matter of cutting pay and benefits. As self-governance is crimped primarily by the powers of government personified in its employees, restoring it involves primarily deciding that any number of functions now performed and the professional specialties who perform them, e.g., social workers, are superfluous or worse. Explaining to one’s self and neighbors why such functions and personnel do more harm than good, while the ruling class brings its powers to bear to discredit you, is a very revolutionary thing to do.

America’s pro-family movement is a reaction to the ruling class’s challenges: emptying marriage of legal sanction, promoting abortion, and progressively excluding parents from their children’s education. Americans reacted to these challenges primarily by sorting themselves out. Close friendships and above all marriages became rarer between persons who think well of divorce, abortion, and government authority over children and those who do not. The homeschool movement, for which the Internet became the great facilitator, involves not only each family educating its own children, but also extensive and growing social, intellectual, and spiritual contact among like-minded persons. In short, the part of the country class that is most concerned with family matters has taken on something of a biological identity. Few in this part of the country class have any illusion, however, that simply retreating into private associations will long save their families from societal influences made to order to discredit their ways. But stopping the ruling class’s intrusions would require discrediting its entire conception of man, of right and wrong, as well as of the role of courts in popular government. That revolutionary task would involve far more than legislation.

The ruling class’s manifold efforts to discredit and drive worship of God out of public life — not even the Soviet Union arrested students for wearing crosses or praying, or reading the Bible on school property, as some U.S. localities have done in response to Supreme Court rulings — convinced many among the vast majority of Americans who believe and pray that today’s regime is hostile to the most important things of all. Every December, they are reminded that the ruling class deems the very word “Christmas” to be offensive. Every time they try to manifest their religious identity in public affairs, they are deluged by accusations of being “American Taliban” trying to set up a “theocracy.” Let members of the country class object to anything the ruling class says or does, and likely as not their objection will be characterized as “religious,” that is to say irrational, that is to say not to be considered on a par with the “science” of which the ruling class is the sole legitimate interpreter. Because aggressive, intolerant secularism is the moral and intellectual basis of the ruling class’s claim to rule, resistance to that rule, whether to the immorality of economic subsidies and privileges, or to the violation of the principle of equal treatment under equal law, or to its seizure of children’s education, must deal with secularism’s intellectual and moral core. This lies beyond the boundaries of politics as the term is commonly understood.

It is mostly the Christian religion that is considered offensive. “Christmas” is offensive, but “Hanukkah” is privileged.

The Classes Clash

The ruling class’s appetite for deference, power, and perks grows. The country class disrespects its rulers, wants to curtail their power and reduce their perks. The ruling class wears on its sleeve the view that the rest of Americans are racist, greedy, and above all stupid. The country class is ever more convinced that our rulers are corrupt, malevolent, and inept. The rulers want the ruled to shut up and obey. The ruled want self-governance. The clash between the two is about which side’s vision of itself and of the other is right and which is wrong. Because each side — especially the ruling class — embodies its views on the issues, concessions by one side to another on any issue tend to discredit that side’s view of itself. One side or the other will prevail. The clash is as sure and momentous as its outcome is unpredictable.

In this clash, the ruling class holds most of the cards: because it has established itself as the fount of authority, its primacy is based on habits of deference. Breaking them, establishing other founts of authority, other ways of doing things, would involve far more than electoral politics. Though the country class had long argued along with Edmund Burke against making revolutionary changes, it faces the uncomfortable question common to all who have had revolutionary changes imposed on them: are we now to accept what was done to us just because it was done? Sweeping away a half century’s accretions of bad habits — taking care to preserve the good among them — is hard enough. Establishing, even reestablishing, a set of better institutions and habits is much harder, especially as the country class wholly lacks organization. By contrast, the ruling class holds strong defensive positions and is well represented by the Democratic Party. But a two to one numerical disadvantage augurs defeat, while victory would leave it in control of a people whose confidence it cannot regain.

Certainly the country class lacks its own political vehicle — and perhaps the coherence to establish one. In the short term at least, the country class has no alternative but to channel its political efforts through the Republican Party, which is eager for its support. But the Republican Party does not live to represent the country class. For it to do so, it would have to become principles-based, as it has not been since the mid-1860s. The few who tried to make it so the party treated as rebels: Barry Goldwater and Ronald Reagan. The party helped defeat Goldwater. When it failed to stop Reagan, it saddled his and subsequent Republican administrations with establishmentarians who, under the Bush family, repudiated Reagan’s principles as much as they could. Barack Obama exaggerated in charging that Republicans had driven the country “into the ditch” all alone. But they had a hand in it. Few Republican voters, never mind the larger country class, have confidence that the party is on their side. Because, in the long run, the country class will not support a party as conflicted as today’s Republicans, those Republican politicians who really want to represent it will either reform the party in an unmistakable manner, or start a new one as Whigs like Abraham Lincoln started the Republican Party in the 1850s.

Ron Paul failed to revolutionize the system, although he seems to have tried his best. The Tea Party seems to be the next step.

The name of the party that will represent America’s country class is far less important than what, precisely, it represents and how it goes about representing it because, for the foreseeable future, American politics will consist of confrontation between what we might call the Country Party and the ruling class. The Democratic Party having transformed itself into a unit with near-European discipline, challenging it would seem to require empowering a rival party at least as disciplined. What other antidote is there to government by one party but government by another party? Yet this logic, though all too familiar to most of the world, has always been foreign to America and naturally leads further in the direction toward which the ruling class has led. Any country party would have to be wise and skillful indeed not to become the Democrats’ mirror image.

Yet to defend the country class, to break down the ruling class’s presumptions, it has no choice but to imitate the Democrats, at least in some ways and for a while. Consider: The ruling class denies its opponents’ legitimacy. Seldom does a Democratic official or member of the ruling class speak on public affairs without reiterating the litany of his class’s claim to authority, contrasting it with opponents who are either uninformed, stupid, racist, shills for business, violent, fundamentalist, or all of the above. They do this in the hope that opponents, hearing no other characterizations of themselves and no authoritative voice discrediting the ruling class, will be dispirited. For the country class seriously to contend for self-governance, the political party that represents it will have to discredit not just such patent frauds as ethanol mandates, the pretense that taxes can control “climate change,” and the outrage of banning God from public life. More important, such a serious party would have to attack the ruling class’s fundamental claims to its superior intellect and morality in ways that dispirit the target and hearten one’s own. The Democrats having set the rules of modern politics, opponents who want electoral success are obliged to follow them.

Suppose that the Country Party (whatever its name might be) were to capture Congress, the presidency, and most statehouses. What then would it do? Especially if its majority were slim, it would be tempted to follow the Democrats’ plan of 2009-2010, namely to write its wish list of reforms into law regardless of the Constitution and enact them by partisan majorities supported by interest groups that gain from them, while continuing to vilify the other side. Whatever effect this might have, it surely would not be to make America safe for self-governance because by carrying out its own “revolution from above” to reverse the ruling class’s previous “revolution from above,” it would have made that ruinous practice standard in America. Moreover, a revolution designed at party headquarters would be antithetical to the country class’s diversity as well as to the American Founders’ legacy.

More to the point, I suspect that the Tea Party will not have time to win elections because the world political situation will probably be disrupted by a “black swan,” such as dollar hyperinflation.

Achieving the country class’s inherently revolutionary objectives in a manner consistent with the Constitution and with its own diversity would require the Country Party to use legislation primarily as a tool to remove obstacles, to instruct, to reintroduce into American life ways and habits that had been cast aside. Passing national legislation is easier than getting people to take up the responsibilities of citizens, fathers, and entrepreneurs.

Codevilla seems to have neglected the possibility that the Tea Party might turn to self-sufficient, hyper-localized, isolated communities.

Reducing the taxes that most Americans resent requires eliminating the network of subsidies to millions of other Americans that these taxes finance, and eliminating the jobs of government employees who administer them. Eliminating that network is practical, if at all, if done simultaneously, both because subsidies are morally wrong and economically counterproductive, and because the country cannot afford the practice in general. The electorate is likely to cut off millions of government clients, high and low, only if its choice is between no economic privilege for anyone and ratifying government’s role as the arbiter of all our fortunes. The same goes for government grants to and contracts with so-called nonprofit institutions or non-governmental organizations. The case against all arrangements by which the government favors some groups of citizens is easier to make than that against any such arrangement. Without too much fuss, a few obviously burdensome bureaucracies, like the Department of Education, can be eliminated, while money can be cut off to partisan enterprises such as the National Endowments and public broadcasting. That sort of thing is as necessary to the American body politic as a weight reduction program is essential to restoring the health of any human body degraded by obesity and lack of exercise. Yet shedding fat is the easy part. Restoring atrophied muscles is harder. Reenabling the body to do elementary tasks takes yet more concentration.

The grandparents of today’s Americans (132 million in 1940) had opportunities to serve on 117,000 school boards. To exercise responsibilities comparable to their grandparents’, today’s 310 million Americans would have radically to decentralize the mere 15,000 districts into which public school children are now concentrated. They would have to take responsibility for curriculum and administration away from credentialed experts, and they would have to explain why they know better. This would involve a level of political articulation of the body politic far beyond voting in elections every two years.

If self-governance means anything, it means that those who exercise government power must depend on elections. The shorter the electoral leash, the likelier an official to have his chain yanked by voters, the more truly republican the government is. Yet to subject the modern administrative state’s agencies to electoral control would require ordinary citizens to take an interest in any number of technical matters. Law can require environmental regulators or insurance commissioners, or judges or auditors to be elected. But only citizens’ discernment and vigilance could make these officials good. Only citizens’ understanding of and commitment to law can possibly reverse the patent disregard for the Constitution and statutes that has permeated American life. Unfortunately, it is easier for anyone who dislikes a court’s or an official’s unlawful act to counter it with another unlawful one than to draw all parties back to the foundation of truth.

Codevilla seems to neglect the possibility that a collapse of the USA economy might mean that the school boards and the schools might both vanish overnight.

How, for example, to remind America of, and to drive home to the ruling class, Lincoln’s lesson that trifling with the Constitution for the most heartfelt of motives destroys its protections for all? What if a country class majority in both houses of Congress were to co-sponsor a “Bill of Attainder to deprive Nancy Pelosi, Barack Obama, and other persons of liberty and property without further process of law for having violated the following ex post facto law…” and larded this constitutional monstrosity with an Article III Section 2 exemption from federal court review? When the affected members of the ruling class asked where Congress gets the authority to pass a bill every word of which is contrary to the Constitution, they would be confronted, publicly, with House Speaker Nancy Pelosi’s answer to a question on the Congress’s constitutional authority to mandate individuals to purchase certain kinds of insurance: “Are you kidding? Are you kidding?” The point having been made, the Country Party could lead public discussions around the country on why even the noblest purposes (maybe even Title II of the Civil Rights Bill of 1964?) cannot be allowed to trump the Constitution.

How the country class and ruling class might clash on each item of their contrasting agendas is beyond my scope. Suffice it to say that the ruling class’s greatest difficulty — aside from being outnumbered — will be to argue, against the grain of reality, that the revolution it continues to press upon America is sustainable. For its part, the country class’s greatest difficulty will be to enable a revolution to take place without imposing it. America has been imposed on enough.

If the USA economy should collapse, the Country Class won’t have to impose much of anything. The superstructure of modern USA society might crumble from a lack of support.

A Handy List Of Mainstream Websites From Tablet

Via the one and only Xymphora:

http://xymphora.blogspot.com/2010/07/thursday-july-22-2010.html


http://www.tabletmag.com/news-and-politics/40064/mainstreaming-hate/

The text can be ignored, but Tablet Magazine hates the following websites:

http://mondoweiss.net/

http://www.salon.com/news/opinion/glenn_greenwald/index.html

http://walt.foreignpolicy.com/

http://thelede.blogs.nytimes.com/

http://www.lobelog.com/

All of the above strike me as ridiculously mainstream. Perhaps the folks at Tablet think they are being smart, and directing heretics to tame sources of watered-down stuff.

If they really wanted to point out criticism of Jews, they could point to

http://theoccidentalobserver.net/tooblog/?p=2956

or

http://theoccidentalobserver.net/tooblog/?p=2923

Plus, also via Xymphora:

http://cryptome.org/0001/wikileaks-snitch.htm

It is hard to believe that among hacker-led Wikileaks, 25% of its workers, volunteers and supporters are snitches. Not even organized crime suffers that scale of corruption. However, in spyworld it is required that 100% of spies snitch on both targets and each other, trained as they are to do just that and only that.

Now it is obligatory to exaggerate threats among secret organizations up to no good, that is the principal argument for secrecy. So to claim 25% of hackers are snitches, as 100% of spies claim they must snitch 100% of the time, it is necessary to exaggerate internal risk, to demand that snitching against snitches is necessary to save the secret cult.

Cult countersnitching is as convoluted as counterspying, and no cult member is safe from it, or so snitches avow: get used to it, the axe could fall without warning. The motto of brutal authoritarinaism, no?

The undermining paradox of secret organizations is that they require snitching on violators: disclosing secrets. And they are rewarded for doing so.

A similar paradox involves leaking confidential information: the greater the leakage the greater the secrecy countermeasures. The greater the secrecy the greater punishment for leaking and the greater the rewards for abetting leaking.

I think Cryptome’s analysis fails to account for the power law phenomena involved. Wikileaks might be just a dozen folks; it would be hard for three of them to be snitches. Conversely, if a large nation has ten thousand soldiers, it might be possible for 2500 of them to be spies, because the demographics of a dozen is quite different than the demographics of a myriad.

Two Angles on Iran by Gareth Porter

http://www.counterpunch.org/porter07062010.html

Olli Heinonen, the Finnish nuclear engineer who resigned Thursday after five years as deputy director for safeguards of the International Atomic Energy Agency (IAEA), was the driving force in turning that agency into a mechanism to support U.N. Security Council sanctions against Iran.

Heinonen was instrumental in making a collection of intelligence documents showing a purported Iranian nuclear weapons research programme the central focus of the IAEA’s work on Iran. The result was to shift opinion among Western publics to the view that Iran had been pursuing a covert nuclear weapons programme.

But his embrace of the intelligence documents provoked a fierce political struggle within the Secretariat of the IAEA, because other officials believed the documents were fraudulent.

Heinonen took over the Safeguards Department in July 2005 – the same month that the George W. Bush administration first briefed top IAEA officials on the intelligence collection.

The documents portrayed a purported nuclear weapons research programme, originally called the “Green Salt” project, that included efforts to redesign the nosecone of the Shahab-3 missile, high explosives apparently for the purpose of triggering a nuclear weapon and designs for a uranium conversion facility. Later the IAEA referred to the purported Iranian activities simply as the “alleged studies”.

The Bush administration was pushing the IAEA to use the documents to accuse Iran of having had a covert nuclear weapons programme. The administration was determined to ensure that the IAEA Governing Board would support referring Iran to the U.N. Security Council for action on sanctions, as part of a larger strategy to force Iran to abandon its uranium enrichment programme.

Long-time IAEA Director-General Mohammed ElBaradei and other officials involved in investigating and reporting on Iran’s nuclear programme were immediately sceptical about the authenticity of the documents. According to two Israeli authors, Yossi Melman and Meir Javadanfar, several IAEA officials told them in interviews in 2005 and 2006 that senior officials of the agency believed the documents had been “fabricated by a Western intelligence organisation”.

Heinonen, on the other hand, supported the strategy of exploiting the collection of intelligence documents to put Iran on the defensive. His approach was not to claim that the documents’ authenticity had been proven but to shift the burden of proof to Iran, demanding that it provide concrete evidence that it had not carried out the activities portrayed in the documents.

From the beginning, Iran’s permanent representative to the IAEA, Ali Asghar Soltanieh, denounced the documents as fabrications. In Governing Board meetings and interviews, Soltanieh pointed to several indicators, including the absence of official stamps showing receipt of the document by a government office and the absence of any security markings.

The tensions between Heinonen and the senior officials over the intelligence documents intensified in early 2008, when Iran provided detailed documentation to the agency disproving a key premise of the intelligence documents.

Kimia Maadan, a private Iranian company, was shown in the intelligence documents as having designed a uranium conversion facility as part of the alleged military nuclear weapons research programme. Iran proved to the satisfaction of those investigating the issue, however, that Kimia Maadan had been created by Iran’s civilian atomic energy agency solely to carry out a uranium ore processing project and had gone out of business before it fulfilled the contract.

Senior IAEA officials then demanded that Heinonen distance the organisation from the documents by inserting a disclaimer in future agency reports on Iran that it could not vouch for the authenticity of the documents.

Instead Heinonen gave a “technical briefing” for IAEA member countries in February 2008 featuring a diagram on which the ore processing project and the uranium processing project were both carried out by the firm and shared the same military numbering system.

The IAEA report published just three days earlier established, however, that the ore processing project number — 5/15 — had been assigned to it not by the military but by the Atomic Energy Organisation of Iran. And the date on which it was assigned was August 1999 – many months before the purported nuclear weapons programme was shown to have been organised.

Heinonen carefully avoided endorsing the documents as authentic. He even acknowledged that Iran had spotted technical errors in the one-page design for a small-scale facility for uranium conversion, and that there were indeed “technical inconsistencies” in the diagram.

He also admitted Iran had provided open source publications showing spherical firing systems similar to the one depicted in the intelligence documents on alleged tests of high explosives.

Heinonen suggested in his presentation that the agency did not yet have sufficient information to come to any firm conclusions about those documents. In the May 2008 IAEA report, however, there was no mention of any such caveats about the documents.

Instead, the report used language that was clearly intended to indicate that the agency had confidence in the intelligence documents: “The documentation presented to Iran appears to have been derived from multiple sources over different periods of time, is detailed in content and appears to be generally consistent.”

That language, on which Heino{n}en evidently insisted, did not represent a consensus among senior IAEA officials. One senior official suggested to IPS in September 2009 that the idea that documents came from different sources was not completely honest.

“There are intelligence-sharing networks,” said the official. It was possible that one intelligence organisation could have shared the documents with others, he explained.

“That gives us multiple sources consistent over time,” said the official.

The same official said of the collection of intelligence documents, “It’s not difficult to cook up.”

Nevertheless, Heinonen’s position had clearly prevailed. And in the final year of ElBaradei’s leadership of the agency, the Safeguards Department became an instrument for member states – especially France, Britain, Germany and Israel – to put pressure on ElBaradei to publish summaries of intelligence reports portraying Iran as actively pursuing a nuclear weapons programme.

The active pressure of the United States and its allies on behalf of the hard line toward Iran was the main source of Heinonen’s power on the issue. Those states have been feeding intelligence on alleged covert Iranian nuclear activities to the Safeguards Division for years, and Heinonen knew that ElBaradei could not afford to confront the U.S.-led coalition openly over the issue.

The Bush administration had threatened to replace ElBaradei in 2004 and had reluctantly accepted his reelection as director-general in 2005. ElBaradei was not strong enough to threaten to fire the main antagonist over the issue of alleged studies.

ElBaradei’s successor Yukio Amano is even less capable of adopting an independent position on the issues surrounding the documents. The political dynamics of the IAEA ensure that Heinonen’s successor is certain to continue the same line on the Iran nuclear issue and intelligence documents as Heinonen’s.

http://www.veteranstoday.com/2010/07/02/rupert-murdoch’s-london-times-published-forged-iran-nuke-document-u-s-intelligence-concludes/

WASHINGTON (IPS) – U.S. intelligence has concluded that the document published recently by the Times of London, which purportedly describes an Iranian plan to do experiments on what the newspaper described as a “neutron initiator” for an atomic weapon, is a fabrication, according to a former Central Intelligence Agency official.
Philip Giraldi, who was a CIA counterterrorism official from 1976 to 1992, told IPS that intelligence sources say that the United States had nothing to do with forging the document, and that Israel is the primary suspect. The sources do not rule out a British role in the fabrication, however.
The Times of London story published Dec. 14 did not identify the source of the document. But it quoted “an Asian intelligence source” – a term some news media have used for Israeli intelligence officials – as confirming that his government claims Iran was working on a neutron initiator as recently as 2007.
The story of the purported Iranian document prompted a new round of expressions of U.S. and European support for tougher sanctions against Iran.
U.S. news media reporting has left the impression that U.S. intelligence analysts have not made up their mind about the document’s authenticity, although it has been widely reported that they have now had a full year to assess the issue.
Giraldi’s intelligence sources did not reveal all the reasons that led analysts to conclude that the purported Iran document had been fabricated by a foreign intelligence agency. But their suspicions of fraud were prompted in part by the source of the story, according to Giraldi.
“The Rupert Murdoch chain has been used extensively to publish false intelligence from the Israelis and occasionally from the British government,” Giraldi said.
The Times is part of a Murdoch publishing empire that includes the Sunday Times, Fox News and the New York Post. All Murdoch-owned news media report on Iran with an aggressively pro-Israeli slant.
The document itself also had a number of red flags suggesting possible or likely fraud.
The subject of the two-page document which the Times published in English translation would be highly classified under any state’s security system. Yet there is no confidentiality marking on the document, as can be seen from the photograph of the Farsi-language original published by the Times.
The absence of security markings has been cited by the Iranian ambassador to the International Atomic Energy Agency, Ali Asghar Soltanieh, as evidence that the “alleged studies” documents, which were supposedly purloined from an alleged Iranian nuclear weapons-related program early in this decade, are forgeries.
The document also lacks any information identifying either the issuing office or the intended recipients. The document refers cryptically to “the Centre”, “the Institute”, “the Committee”, and the “neutron group”.
The document’s extreme vagueness about the institutions does not appear to match the concreteness of the plans, which call for hiring eight individuals for different tasks for very specific numbers of hours for a four-year time frame.
Including security markings and such identifying information in a document increases the likelihood of errors that would give the fraud away.
The absence of any date on the document also conflicts with the specificity of much of the information. The Times reported that unidentified “foreign intelligence agencies” had dated the document to early 2007, but gave no reason for that judgment.
An obvious motive for suggesting the early 2007 date is that it would discredit the U.S. intelligence community’s November 2007 National Intelligence Estimate, which concluded that Iran had no nuclear weapons program.
Discrediting the NIE has been a major objective of the Israeli government for the past two years, and the British and French governments have supported the Israeli effort.
The biggest reason for suspecting that the document is a fraud is its obvious effort to suggest past Iranian experiments related to a neutron initiator. After proposing experiments on detecting pulsed neutrons, the document refers to “locations where such experiments used to be conducted”.
That reference plays to the widespread assumption, which has been embraced by the International Atomic Energy Agency, that Iran had carried out experiments with Polonium-210 in the late 1980s, indicating an interest in neutron initiators. The IAEA referred in reports from 2004 through 2007 to its belief that the experiment with Polonium-210 had potential relevance to making “a neutron initiator in some designs of nuclear weapons”.
The National Council of Resistance of Iran (NCRI), the political arm of the terrorist organization Mujahedeen-e Khalq, claimed in February 2005 that Iran’s research with Polonium-210 was continuing and that it was now close to producing a neutron initiator for a nuclear weapon.
Sanger and Broad were so convinced that the Polonium-210 experiments proved Iran’s interest in a neutron initiator that they referred in their story on the leaked document to both the IAEA reports on the experiments in the late 1980s and the claim by NCRI of continuing Iranian work on such a nuclear trigger.
What Sanger and Broad failed to report, however, is that the IAEA has acknowledged that it was mistaken in its earlier assessment that the Polonium-210 experiments were related to a neutron initiator.
After seeing the complete documentation on the original project, including complete copies of the reactor logbook for the entire period, the IAEA concluded in its Feb. 22, 2008 report that Iran’s explanations that the Polonium-210 project was fundamental research with the eventual aim of possible application to radio isotope batteries was “consistent with the Agency’s findings and with other information available to it”.
The IAEA report said the issue of Polonium-210 – and thus the earlier suspicion of an Iranian interest in using it as a neutron initiator for a nuclear weapon – was now considered “no longer outstanding”.
New York Times reporters David Sanger and William J. Broad reported U.S. intelligence officials as saying the intelligence analysts “have yet to authenticate the document”. Sanger and Broad explained the failure to do so, however, as a result of excessive caution left over from the CIA’s having failed to brand as a fabrication the document purporting to show an Iraqi effort to buy uranium in Niger.
The Washington Post’s Joby Warrick dismissed the possibility that the document might be found to be fraudulent. “There is no way to establish the authenticity or original source of the document…,” wrote Warrick.
But the line that the intelligence community had authenticated it evidently reflected the Barack Obama administration’s desire to avoid undercutting a story that supports its efforts to get Russian and Chinese support for tougher sanctions against Iran.
This is not the first time that Giraldi has been tipped off by his intelligence sources on forged documents. Giraldi identified the individual or office responsible for creating the two most notorious forged documents in recent U.S. intelligence history.
In 2005, Giraldi identified Michael Ledeen, the extreme right-wing former consultant to the National Security Council and the Pentagon, as an author of the fabricated letter purporting to show Iraqi interest in purchasing uranium from Niger. That letter was used by the George W. Bush administration to bolster its false case that Saddam Hussein had an active nuclear weapons program.
Giraldi also identified officials in the “Office of Special Plans” who worked under Undersecretary of Defense for Policy Douglas Feith as having forged a letter purportedly written by Hussein’s intelligence director, Tahir Jalail Habbush al-Tikriti, to Hussein himself referring to an Iraqi intelligence operation to arrange for an unidentified shipment from Niger.

Forecast: USA Elite Will Try For War Against Iran

Obama Is Preparing to Bomb Iran
[Translate]
Webster G. Tarpley
TARPLEY.net
July 21, 2010

After about two and a half years during which the danger of war between the United States and Iran was at a relatively low level, this threat is now rapidly increasing. A pattern of political and diplomatic events, military deployments, and media chatter now indicates that Anglo-American ruling circles, acting through the troubled Obama administration, are currently gearing up for a campaign of bombing against Iran, combined with special forces incursions designed to stir up rebellions among the non-Persian nationalities of the Islamic Republic. Naturally, the probability of a new fake Gulf of Tonkin incident or false flag terror attack staged by the Anglo-American war party and attributed to Iran or its proxies is also growing rapidly.

The moment in the recent past when the US came closest to attacking Iran was August-September 2007, at about the time of the major Israeli bombing raid on Syria. This was the phase during which the Cheney faction in effect hijacked a fully loaded B-52 bomber equipped with six nuclear-armed cruise missiles, and attempted to take it to the Middle East outside of the command and control of the Pentagon, presumably to be used in a colossal provocation designed by the private rogue network for which Cheney was the visible face. A few days before the B-52 escaped control of legally constituted US authorities, a group of antiwar activists issued The Kennebunkport Warning of August 24-25, 2007, which had been drafted by the present writer. It was very significant that US institutional forces acted at that time to prevent the rogue B-52 from proceeding on its way towards the Middle East. The refusal to let the rogue B-52 take off reflected a growing consensus in the US military-intelligence community and the ruling elite in general that the Bush-Cheney-neocon policy of direct military aggression towards all comers had become counterproductive and very dangerous, running the risk of a terminal case of imperial overstretch.

Note that a severe military over-stretch could trigger a military crisis. Suppose a war triggered a spike in oil prices that crushed free economies while empowering Russia, Venezuela, etc.

It is genuinely appalling to realize that we are now back to something resembling the desperate situation of 2002, with Iran as the target this time around. One rule of thumb which many learned during the Bush-Cheney years is that the attack is likely to start during the dark of the moon. This suggests a possible timetable built around August 10, September 8, or October 7 of this year, or perhaps some time later. It may come as an October surprise, as de Borchgrave seems to suggest. We are back once again to the classic predicament of persons of good will in recent decades: get active or get radioactive. So it’s time to get active.


http://tarpley.net/2010/07/22/obama-preparing-to-bomb-iran/

For historical context, see:

http://tarpley.net/2007/07/21/cheney-determined-to-strike-in-us-with-wmd-this-summer/

and also refer to

“THE KENNEBUNKPORT WARNING/ To the American people, and to peace loving individuals everywhere: Massive evidence has come to our attention which shows that the backers, controllers, and allies of Vice President Dick Cheney are determined to orchestrate and manufacture a new 9/11 terror incident, and/or a new Gulf of Tonkin war provocation over the coming weeks and months. Such events would be used by the Bush administration as a pretext for launching an aggressive war against Iran, quite possibly with nuclear weapons, and for imposing a regime of martial law here in the United States. We call on the House of Representatives to proceed immediately to the impeachment of Cheney, as an urgent measure for avoiding a wider and more catastrophic war. Once impeachment has begun, it will be easier for loyal and patriotic military officers to refuse illegal orders coming from the Cheney faction. We solemnly warn the people of the world that any terrorist attack with weapons of mass destruction taking place inside the United States or elsewhere in the immediate future must be considered the prima facie responsibility of the Cheney faction. We urge responsible political leaders everywhere to begin at once to inoculate the public opinion of their countries against such a threatened false flag terror operation. (Signed) A Group of US Opposition Political Leaders Gathered in Protest at the Bush Compound in Kennebunkport, Maine, August 24-25, 2007”

And how did I see this? How do I find out anything? Via Jeff Rense, of course.

Gordon Duff, Bin Laden, and why JFK was not allowed to inspect Dimona

Below, Gordon Duff writes a great deal about Bin Laden, but to my mind, the most interesting issue is whether JFK’s demand for Dimona inspections sealed his fate. All comments within the block-quote marked “Editor’s Note” are from Duff’s version.


http://www.veteranstoday.com/2010/07/10/gordon-duff-classified-cia-transcript-counters-bin-laden-terror-role/

DOUBT THROWN ON PROOF BIN LADEN A TERRORIST LEADER
By Gordon Duff STAFF WRITER/Senior Editor
Two weeks ago, CIA Director Leon Panetta told the press the CIA had not been able to positively confirm any specific information on Osama bin Laden since “late 2000.”    Interviews with high ranking military and intelligence officials, some at the highest levels, have confirmed that all evidence lends toward Osama bin Laden’s death in December 2001.  Yet transcripts of translated audio and video tapes, albeit widely disputed, are continually released by a news agency tied to Israeli intelligence services.
The transcripts of the last proven bin Laden interview, translated by the CIA, are compared to similar translations of a 2007 “broadcast” said to be by Osama bin Laden.  Both are excerpted for length but not content.  Striking differences between the two “bin Ladens” is obvious.  In 2007, in a lengthy admonition, no mention of Israel is made whatsoever, nor of Palestine.  In fact, the bin Laden of 2007 seems to be totally oblivious of Israel.  We will begin with the CIA document, one that directly disputes claims made by the media for years.  We thank the Central Intelligence Agency for making this document available.

With dozens of films, videos and recordings, all claiming Osama bin Laden has taken credit for 9/11 and other terrorist attacks against America, Britain, Spain and other nations, the possession of the only official translation of the real Osama bin Laden is vital.  What you are going to be reading is both astounding and frightening. 

CENTRAL INTELLIGENCE AGENCY FOREIGN BROADCASTING INTERNATIONAL SERVICE:
FOR OFFICIAL USE ONLY
Website of Doha Al-Jazirah Satellite Channel Television in Arabic [FBIS Report] Website of Doha Al-Jazirah Satellite Channel Television in Arabic,independent television station financed by the Qatari Government, which can be accessedat URL: http://www.aljazeera.net, carries at 2011 GMT on 24 September the text of the following letter by Usama Bin Ladin “to the Pakistani people.”
“We hope that these brothers would be the first martyrs in Islam’s battle in this age against the new Jewish crusade that is being led by the biggest crusader, Bush, under the banner of the cross. This battle is one of Islam’s immortal battles.”
“We beseech God to grant him victory against the forces of infidelity and arrogance, and to crush the new crusader-Jewish campaign on the land of Pakistan and Afghanistan.”
“I have already said that I am not involved in the 11 September attacks in the United States.”
“Neither I had any knowledge of these attacks nor I consider the killing of innocent women, children, and other humans as an appreciable act. . Islam strictly forbids causing harm to innocent women, children, and other people. Such a practice is forbidden ever in the course of a battle.”
“All that is going on in Palestine for the last 11 months is sufficient to call the wrath of God upon the United States and Israel.”
“Whoever committed the act of 11 September are not the friends of the American people. I have already said that we are against the American system, not against its people, whereas in these attacks, the common American people have been killed. According to my information, the death toll is much higher than what the US Government has stated.
“The United States should try to trace the perpetrators of these attacks within itself; the people who are a part of the US system, but are dissenting against it. Or those who are working for some other system; persons who want to make the present century as a century of conflict between Islam and Christianity so that their own civilization, nation, country, or ideology could survive.”
“They can be any one, from Russia to Israel and from India to Serbia.”
“Then you cannot forget the American Jews, who are annoyed with President Bush ever since the elections in Florida and want to avenge him.”
“Then there are intelligence agencies in the US, which require billions of dollars worth of funds from the Congress and the government every year. This [funding issue] was not a big problem till the existence of the former Soviet Union but after that the budget of these (FOR OFFICIAL USE ONLY 180) agencies has been in danger. They needed an enemy. So, they first started propaganda against Usama and Taliban and then this incident happened.”
“Drug smugglers from all over the world are in contact with the US secret agencies. These agencies do not want to eradicate narcotics cultivation and trafficking because their importance will be diminished. The people in the US Drug Enforcement Department are encouraging drug trade so that they could show performance and get millions of dollars worth of budget. General Noriega was made a drug baron by the CIA and, in need, he was made a scapegoat.”
“President Bush or any other US President, they cannot bring Israel to justice for its human rights abuses or to hold it accountable for such crimes. What is this? Is it not that there exists a government within the government in the United Sates? That secret government must be asked as to who made the attacks.”
“Supporting the US act is the need of some Muslim countries and the compulsion of others. However, they should think as to what will remain of their religious and moral position if they support the attack of the Christians and the Jews on a Muslim country like Afghanistan.”
“I have already said that we are not hostile to the United States. We are against the system, which makes other nations slaves of the United States, or forces them to mortgage their political and economic freedom.”
“This system is totally in control of the American Jews, whose first priority is Israel, not the United States. It is simply that the American people are themselves the slaves of the Jews and are forced to live according to the principles and laws laid by them. So, the punishment should reach Israel.”
”The Western media is unleashing such a baseless propaganda, which make us surprise but it reflects on what is in their hearts and gradually they themselves become captive of this propaganda. They become afraid of it and begin to cause harm to themselves.”
“Terror is the most dreaded weapon in modern age and the Western media is mercilessly using it against its own people. It can add fear and helplessness in the psyche of the people of Europe and the United States. It means that what the enemies of the United States cannot do, its media is doing that. You can understand as to what will be the performance of the nation in a war, which suffers from fear and helplessness.”
FOR OFFICIAL USE ONLY END OF OFFICIAL TRANSCRIPT

Bin Laden is clear on a number of issues. His overall belief is that the American people are being victimized and enslaved by powerful interests allied with Zionism and that the people of the United States are not to be considered targets for reprisal. The full length version includes outlines for economic reprisals and boycotts, rather than terrorism or Jihad. Bin Ladens admonition of the western media as purveyors of terrorism through propaganda seem to be proven out in the text of our next transcript, one reported extensively by the media though never verified other than by private sources tied to Israel. If the world’s top intelligence agencies are correct, Osama bin Laden had been dead for nearly six years when the following statements were credited to him:
TRANSCRIPT OF 9/11 SIXTH ANNIVERSARY STATEMENT BY OSAMA BIN LADEN (UNVERIFIED)

And from His ways is that the days rotate between the people, and from His Law is retaliation in kind: an eye for an eye, a tooth for a tooth and the killer is killed/ I begin by discussing the war which is between us and some of its repercussions for us and you.
To preface, I say: despite America being the greatest economic power and possessing the most powerful and up-to-date military arsenal as well; and despite it spending on this war and is army more than the entire world spends on its armies; and despite it being the being the major state influencing the policies of the world, as if it has a monopoly on the unjust right of veto; despite all of this, 19 young men were able – by the grace of Allah, the Most High- to change the direction of its compass. And in fact, the subject of the Mujahideen has become an inseparable part of the speech of your leader, and the effects and signs of that
(Editor’s note: Official transcripts indicate that these statements are inconsistent with Osama bin Laden.)
Since the 11th, many of America’s policies have come under the influence of the Mujahideen, and that is by the grace of Allah, the Most High.
(Editor’s note: Official transcripts indicate that these statements are inconsistent with Osama bin Laden.)
And for your information media, during the first years of the war, lost its credibility and manifested itself as a tool of the colonialist empires, and its condition has often been worse than the condition of the media of the dictatorial regimes which march in the caravan of the single leader.
(Editor’s note: Official transcripts indicate that these statements are inconsistent with Osama bin Laden. )
And among the most important items contained in Bush’s speeches since the events of the 11this that the Americans have no option but to continue the war. This tone is in fact an echoing of the words of neoconservatives like Cheney, Rumsfeld and Richard Pearle, the latter having said previously that the Americans
I say, refuting this unjust statement, that the morality and culture of the holocaust is your culture, not our culture. In fact, burning living beings is forbidden in our religion, even if they be small like the ant, so what of man?! The holocaust of the Jews was carried out by your brethren in the middle of Europe, but had it been closer to our countries, most of the Jews would have been saved by taking refuge with us.
(Editor’s note: Official transcripts indicate that these statements are inconsistent with Osama bin Laden. Osama bin Laden has never mentioned “holocaust” but has only criticized the use of it as an excuse used by Israel for illegal acts through manipulation and guilt.)
But the fact is, there is a continuing and biased campaign being waged against us for a long time now by your politicians and many of your writers by way of your media, especially Hollywood, for the purpose of misrepresenting Islam and its adherents to drive you away from the true religion.
(Editor’s note: Official transcripts indicate that these statements are inconsistent with Osama bin Laden. Bin Laden refers to the media as terrorists, not “misrepresenting Islam.”)
Why are the leaders of the White House keen to start wars and wage them around the world, and make use of every possible opportunity through which they can reach this purpose, occasionally even creating justifications based on deception and blatant lies, as you saw Iraq?
(Editor’s note: Official transcripts indicate that these statements are inconsistent with Osama bin Laden. Bin Laden’s long stated belief is that Paul Wolfowitz, acting as an Israeli agent, was responsible for orchestration the deception campaign leading to the 2003 invasion of Iraq.)
And when Kennedy took over the presidency and deviated from the general line of policy drawn up for the White House and wanted to stop this unjust war, that angered the owners of the major corporations who were benefiting from its continuation.
(Editor’s note: The recurrent theme of the Vietnam War leading to the Kennedy assassinations, the Garrison/JFK/Oliver Stone theme, simply doesn’t hold water. However, there is a rationale for mentioning the Kennedy assassination “out of the blue.” The release of letters between Kennedy and Israel indicate an extremely heated dispute over the use of the Dimona reactor for the manufacture of nuclear weapons by Israel. Kennedy demanded an immediate inspection. This would have left Israel without a nuclear arsenal. Kennedy was murdered and Lyndon Johnson, at the time having an affair with a Mossad/Irgun operative, took his place.)
And so Kennedy was killed, and al-Qaida wasn’t present at that time, but rather, those corporations were the primary beneficiary from his killing.
(Editor’s note: Official transcripts indicate that these statements are inconsistent with Osama bin Laden. Osama bin Laden has never blamed US corporations for any of these issues, a theory made popular by Noam Chomsky. Bin Laden: ”It is simply that the American people are themselves the slaves of the Jews and are forced to live according to the principles and laws laid by them.”)
And even more incredible than that is that Bush picked him as secretary of defense in his first term after picking Cheney as his vice-president, Powell as secretary of state and Armitage as Powell’s deputy, despite their horrific and blood history of murdering humans. And among the most capable of those from your own side who speak to you on this topic and on the manufacturing of public opinion is Noam Chomsky, who spoke sober words of advice prior to the war, but the leader of Texas doesn’t like those who give advice.
(Editor’s note: OOPS, here we find Noam Chomsky.)
Those with real power and influence are those with the most capital. And since the democratic system permits major corporations to back candidates, be they presidential or congressional, there shouldn’t be any cause for astonishment – and there isn’t any- in the Democrats’ failure to stop the war.
(Editor’s note: Official transcripts indicate that these statements are inconsistent with Osama bin Laden. More talk of “corporations” when bin Laden would have said Israel.)
And despite this brazen attack on the people, the leaders of the West – especially Bush, Blair, Sarkozy and Brown- still talk about freedom and human rights with a flagrant disregard for the intellects of human beings.
(Editor’s note: Official transcripts indicate that these statements are inconsistent with Osama bin Laden. Does anyone believe Bin Laden would have left Netanyahu off this list? Who would have done that?)
This is why I tell you: as you liberated yourselves before from the slavery of monks, kings, and feudalism, you should liberate yourselves from the deception, shackles and attrition of the capitalist system.
(Editor’s note: ”It is simply that the American people are themselves the slaves of the Jews and are forced to live according to the principles and laws laid by them.”)
The capitalist system seeks to turn the entire world into a fiefdom of the major corporations under the label of “globalization” in order to protect democracy.

In thousands of words, calling for Jihad, promoting violence and destruction, the 2007 version of Osama bin Laden never mentions the word Israel once.
Particular effort is made to omit mention of Israel’s influence on the US, their control of the media or references to Christian followers of Zionism as “crusaders”…

Time Magazine reports on legalized bribery

In line with this morning’s early post (Four out of Five Americans See Financial Reforms as Ineffectual), I discovered, quite by accident, a horrifying little article in the July 12 Time magazine (seen at my hair cutter’s and local barber shops everywhere).

The online version is pretty skimpy, which is probably why I didn’t see it until now. But the details are quite horrific.

The article’s subhed tells you all you need to know: “Why Lobbying Is Washington’s Best Bargain; Lobbyists say for just a few million, they can make clients billions:”

“Lobbyists [are] the best bargain in Washington. Capitol Tax Partners, for example, is one of 1,900 firms that house more than 11,000 lobbyists registered to operate in Washington. Last year, according to the Center for Responsive Politics (CRP), firms like Capitol Tax were paid a total of $3.49 billion for unraveling the mysteries of the tax code for a variety of businesses. According to Capitol Tax co-founder Lindsay Hooper, his firm provided “input and technical advice on various tax matters” to such clients as Morgan Stanley, 3M, Goldman Sachs, Chanel, Ford and the Private Equity Council, which is a trade group trying to head off a plan to increase taxes on what’s called carried interest, a form of income enjoyed by the heavy hitters who run venture-capital and other types of private-equity funds.”

The print edition specifically cites Derivative trading banks and Auto Dealers as examples of ROI. Derivatives trading banks spent $28 million, and got to avoid allocating $5 billion to $7 billion to back their trades. The gain in annual profits is about $3 billion — with the risk remaining on the taxpayers. A pretty nifty return on lobbying investment (minus the lobbyists soul burning in Hell for eternity — but that’s a small price to pay.

Auto Dealers made out even better: They dropped less than $10 million dollars ($6.3 million on lobbying, and an additional $3.4 million in campaign contributions). For their troubles, the dealers get to keep $20 billion each year in undisclosed added interest and fee kickbacks to over-priced loans.

The consumer? Well, apparently, Congress is sending each voter a matching velcro glove and sock set . . .


http://www.ritholtz.com/blog/2010/07/2009-lobbying-expenses-3-49-billion-dollars/

By this point, everyone’s heard the joke, “The USA has the best government money can buy, but the foreign lobbyists have already bought and paid for it.”