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The JFK Assassination and Other Deep (COG) Events

The Hidden Government Group Linking JFK, Watergate, Iran-Contra and 9/11

By Peter Dale Scott

jfk
Peter Dale Scott is considered the father of “Deep Politics”— the study of hidden permanent institutions and interests whose influence on the political realm transcends the elected, appointed and career officials who come and go.
A Professor of English at Berkeley and a former Canadian diplomat, he is the author of several critically acclaimed books on the pivotal events of our country’s recent past, including Deep Politics and the Death of JFK ; Drugs, Oil, and War: The United States in Afghanistan, Colombia, and Indochina (War and Peace Library) ; The Road to 9/11: Wealth, Empire, and the Future of America and American War Machine: Deep Politics, the CIA Global Drug Connection, and the Road to Afghanistan (War and Peace Library) . He is also a poet, whose long work, Coming to Jakarta: A Poem about Terror, was hailed as “the most important political poem to appear in the English language in a very long time,” by Robert Hass, Poet Laureate of the United States from 1995 to 1997.
Daniel Ellsberg said of his book Drugs, Oil and War, “It makes most academic and journalistic explanations of our past and current interventions read like government propaganda written for children.”
What follows is based on a recent Scott lecture entitled “The JFK Assassination and Other Deep Events”, and will be expanded on further in his next book, The American Deep State, due out in November.

October 12, 2014 “ICH” – “WhoWhatWhy” – For some time now, I have been analyzing American history in the light of what I have called structural deep events: events, like the JFK assassination, the Watergate break-in, Iran-Contra, or 9/11, which repeatedly involve law-breaking or violence, are mysterious to begin with, are embedded in ongoing covert processes, have political consequences that enlarge covert government, and are subsequently covered up by systematic falsifications in the mainstream media and internal government records.
The more I study these deep events, the more I see suggestive similarities between them, increasing the possibility that they are not unrelated external intrusions on American history, but parts of an endemic process, sharing to some degree or other a common source.
For example, one factor linking Dallas, Watergate, Iran-Contra, and 9/11, has been the involvement in all four deep events of personnel involved in America’s highest-level emergency planning, known since the 1950s as Continuity of Government (COG) planning, or more colloquially inside the Pentagon as “the Doomsday Project.” A few of these actors may have been located at the top, as overseers of the secret COG system. Others – including some I shall talk about today – were located further down in its secret communications network.
I see this planning group as one among many in what I have chosen to call the American deep state, along with agencies like the CIA and NSA, the private groups like Booz Allen Hamilton to which more than half of the US intelligence budget is outsourced, and finally the powerful banks and corporations whose views are well represented in the CIA and NSA. But if only one group among many, the COG planning group is also special, because of its control of and access to a communications channel, not under government control, that can reach deeply into the US social structure. I discuss these matters at some length in my next book, The American Deep State, due out in November.
COG planning was originally authorized by Truman and Eisenhower as planning for a response to a crippling atomic attack that had decapitated government. In consequence its planning group contemplated extreme measures, including what Alfonso Chardy in 1987 called “suspension of the Constitution.” And yet in Iran-Contra its asset of a secret communications network, developed for the catastrophe of decapitation, was used instead to evade an official embargo on arms sales to Iran that dated back to 1979. My question today is whether the network could have been similarly misused in November 1963.
The Iran-contra misuse has been well-documented. Oliver North supervised the sale of arms to Iran by using his resources as the National Security Council action officer for COG planning, under cover of a “National Program Office” that was overseen by then Vice-President George H. W. Bush. North and his superiors could thus use the COG emergency network, known then as Flashboard, for the arms sales to Iran that had to be concealed from other parts of the Washington bureaucracy as well as the public. So when North had to send emergency instructions for arms delivery to the US Embassy in Lisbon, instructions that directly contravened the embargo prohibiting such sales, he used the Flashboard network to avoid alerting the Ambassador and other unwitting personnel.
The documented example of Iran-Contra allows me to explain what I am saying about the users of the COG network, and also what I am not saying. To begin with, I am not saying that a single “Secret Team” has for decades been using the COG network to manipulate the US Government from outside it. There is no evidence to suggest that North’s actions in Iran-Contra were known to any of his superiors other than CIA chief William Casey and probably George Bush. The point is that a very small group had access to a high-level secret network outside government review, in order to implement a program in opposition to government policy. They succumbed to the temptation to use this secure network that had been designed for other purposes. I have argued elsewhere that this secure network was used again on 9/11, to implement key orders for which the 9/11 Commission could find no records. Whether it was also used for illicit purposes is not known.
It is certain that the COG emergency network program survived North’s demise, and continued to be secretly developed for decades, at a cost of billions, and overseen by a team including Dick Cheney and Donald Rumsfeld. It is relevant that the two men’s presence on the committee spanned three administrations – those of Reagan, Bush I, and Clinton — even though at one point under Clinton neither man held a position inside the U.S. government. Such continuity was essential for a group so secret that few records existed of its activities. And on 9/11 COG plans were officially implemented for the first time, by Vice President Cheney and Defense Secretary Rumsfeld, the two men who had planned them for so many years.
Whether or not they knew about Iran-Contra, Cheney and Rumsfeld were on the COG planning committee at the time of Iran-Contra. There is no such obvious link between COG planning and Watergate, but the involvement of COG personnel in Watergate is nonetheless striking. James McCord, one of the Watergate burglars, was a member of a small Air Force Reserve unit in Washington attached to the Office of Emergency Preparedness (OEP) that was assigned “to draw up lists of radicals and to develop contingency plans for censorship of the news media and U.S. mail in time of war.” His unit was part of the Wartime Information Security Program (WISP), which had responsibility for activating “contingency plans for imposing censorship on the press, the mails and all telecommunications (including government communications) [and] preventive detention of civilian ‘security risks,’ who would be placed in military ‘camps.’” In addition, John Dean, perhaps the central Watergate figure, had overseen secret COG activities when serving as the associate deputy attorney general.
In the case of the JFK assassination, I wish to focus on two men who functioned as part of the communications network of the Office of Emergency Planning (OEP), the agency renamed in 1968 as the Office of Emergency Preparedness (to which McCord was attached), and renamed again in 1982 as the National Program Office (for which Oliver North was the action officer).
These two men (there are others) are Winston Lawson, the Secret Service advance man who from the lead car of the motorcade was in charge of the Secret Service radio channels operating in the motorcade; and Jack Crichton, the army intelligence reserve officer who, with Deputy Dallas Police Chief George Lumpkin selected the Russian interpreter for Marina Oswald’s first (and falsified) FBI interview.
Lawson has drawn the critical attention of JFK researchers, both for dubious actions he took before and during the assassination, and also for false statements he made after it (some of them under oath). For example, Lawson reported after the assassination that motorcycles were deployed on “the right and left flanks of the President’s car” (17 WH 605). On the morning of November 22, however, the orders had been changed (3 WH 244), so that the motorcycles rode instead, as Lawson himself testified to the Warren Commission, “just back of the President’s car” (4 WH 338; cf. 21 WH 768-70). Captain Lawrence of the Dallas Police testified that the proposed side escorts were redeployed to the rear on Lawson’s own instructions (7 WH 580-81; cf. 18 WH 809, 21 WH 571). This would appear to have left the President more vulnerable to possible crossfire.
Early on November 22, at Love Field, Lawson installed, in what would become the lead car, the base radio whose frequencies were used by all Secret Service agents on the motorcade. This radio channel, operated by the White House Communications Agency (WHCA), was used for some key decisions before and after the assassination, yet its records, unlike those of the Dallas Police Department (DPD) Channels One and Two, were never made available to the Warren Commission, or any subsequent investigation. The tape was not withheld because it was irrelevant; on the contrary, it contained very significant information.
The WHCA actually reports to this day on its website that the agency was “a key player in documenting the assassination of President Kennedy.” However it is not clear for whom this documentation was conducted, or why it was not made available to the Warren Commission, the House Select Committee on Assassinations, or the Assassination Records Review Board (ARRB). It should have been.
For one thing, the WHCA tape, as Vincent Palamara has written, contains the “key” to the unresolved mystery of who, after the shooting, redirected the motorcade to Parkland hospital. The significance of this apparently straightforward command, about which there was much conflicting testimony, is heightened when we read repeated orders on the Dallas Police radio transcript to “cut all traffic for the ambulance going to Parkland code 3” (17 WH 395) – the ambulance in question having nothing to do with the president (whose shooting had not yet been announced on the DPD radio). In fact the ambulance had been dispatched about ten minutes before the assassination to pick up someone from in front of the Texas School Book Depository (TSBD), who was wrongly suspected of having suffered an epileptic seizure.
Lawson later reported to the Secret Service that he heard on his radio “that we should proceed to the nearest hospital.” He wrote also that he “requested Chief Curry to have the hospital contacted,” and then that “Our Lead Car assisted the motorcycles in escorting the President’s vehicle to Parkland Hospital” (17 WH 632), cf. 21 WH 580). In other words, after hearing something on the WHCA radio, Lawson helped ensure that the President’s limousine would follow the route already set up by the motorcycles for the epileptic. (In his very detailed Warren Commission testimony, Lawson said nothing about the route having already been cleared. On the contrary, he testified that “we had to do some stopping of cars and holding our hands out the windows and blowing the sirens and horns to get through” (4 WH 354).
The WHCA radio channel used by Lawson and others communicated almost directly to the WHCA base at Mount Weather in Virginia, the base facility of the COG network. From there, Secret Service communications were relayed to the White House, via the batteries of communications equipment connecting Mount Weather with the White House and “Raven Rock” — the underground Pentagon sixty miles north of Washington — as well as with almost every US military unit stationed around the globe.
Jack Crichton, head of the 488th Army Intelligence Reserve unit of Dallas, was also part of this Mount Weather COG network. This was in his capacity as chief of intelligence for Dallas Civil Defense, which worked out of an underground Emergency Operating Center. As Russ Baker reports, “Because it was intended for ‘continuity of government’ operations during an attack, [the Center] was fully equipped with communications equipment.” In retrospect the Civil Defense Program is remembered derisively, for having advised schoolchildren, in the event of an atomic attack, to hide their heads under their desks. But in 1963 civil defense was one of the urgent responsibilities assigned to the Office of Emergency Planning, which is why Crichton, as much as Secret Service agent Lawson, could be in direct touch with the OEP’s emergency communications network at Mount Weather.
Jack Crichton is of interest because he, along with DPD Deputy Chief George Lumpkin of the 488th Army Intelligence Reserve unit, was responsible for choosing a Russian interpreter for Marina Oswald from the right-wing Russian community. This man was Ilya Mamantov, who translated for Marina Oswald at her first DPD interview on November 22. What she allegedly said in Russian at this interview was later used to bolster what I have called the “phase one” story, still promoted from some CIA sources, that Russia and/or Cuba were behind the assassination.
As summarized by the FBI, Mamantov’s account of Marina’s Russian testimony was as follows:
MARINA OSWALD advised that LEE HARVEY OSWALD owned a rifle which he used in Russia about two years ago. She observed what she presumed to be the same rifle in a blanket in the garage at [Ruth Paine’s residence]…. MARINA OSWALD stated that on November 22, she had been shown a rifle in the Dallas Police Department…. She stated that it was a dark color like the one that she had seen, but she did not recall the sight.
These specific details – that Marina said she had seen a rifle that was dark and scopeless – were confirmed in an affidavit (signed by Marina and Mamantov, 24 WH 219) that was taken by DPD officer B.L. Senkel (24 WH 249). They were confirmed again by Ruth Paine, who witnessed the Mamantov interview, (3 WH 82). They were confirmed again the next night in an interview of Marina by the Secret Service, translated by Mamantov’s close friend Peter Gregory. But a Secret Service transcript of the interview reveals that the source of these details was Gregory, not Marina:
(Q) This gun, was it a rifle or a pistol or just what kind of a gun? Can she answer that?
(A) It was a gun
Mr. Gregory asked: Can you describe it?
NOTE: Subject said: I cannot describe it because a rifle to me like all rifles.
Gregory translation: She said she cannot describe it. It was sort of a dark rifle just like any other common rifle…
Subject in Russian: It was a hump (or elevation) but I never saw through the scope….
Gregory translation: She says there was an elevation on the rifle but there was no scope – no telescope.
We have to conclude not just that Gregory had falsified Marina’s testimony (“a rifle to me like all rifles”); but so probably had his friend Mamantov, who later testified no less than seven times to the Warren Commission that Marina had used the word “dark” to describe the gun. There were others in Dallas who claimed that Oswald’s gun indeed had been scopeless, until Oswald had a scope installed on it by Dallas gunsmith Dial Ryder. The Warren Report elaborately refuted this corroborated claim, and concluded that “the authenticity of the repair tag” used to support it was “subject to grave doubts.” (WR 317).
We can see here, what the Warren Commission did not wish to see, signs of a conspiracy to misrepresent Marina’s testimony, and possibly to link Oswald’s gun to a dark and scopeless rifle he had in the Soviet Union. Our concerns that Mamantov misrepresented her lead us to concerns about why two Army Intelligence Reserve officers from the 488th unit (Jack Crichton and Deputy DPD Chief George Lumpkin) selected Mamantov as her interpreter. Our concerns are increased when we see that B.L. Senkel, the DPD officer who took Marina’s suspect affidavit, was the partner of F.P. Turner, who collected the dubious rifle repair tag (24 WH 328), and that both men spent most of November 22 with DPD Deputy Chief Lumpkin. For example, they were with Lumpkin in the pilot car of the motorcade when Lumpkin was communicating with Winston Lawson in the lead car behind them.
I conclude that when we look at the conduct of the two men we know to have been parts of the COG emergency communications network in Dallas, we see patterns of sinister behavior that also involved others, or what we may call conspiratorial behavior. These concatenated efforts to implicate Oswald in a phase-one conspiracy narrative lead me to propose a hypothesis for which I have neither evidence nor an alternative explanation: namely, that someone on the WHCA network may have been the source for the important unexplained description on the Dallas Police tapes of a suspect who had exactly the false height and weight (5 feet 10 inches, 165 pounds) recorded for Oswald in his FBI and CIA files.
Note that there are no other known sources ascribing this specific height and weight to Oswald. For example, when he was arrested and charged in Dallas that same day, Oswald was recorded as having a height of 5’9 ½ inches, and a weight of 131 pounds. The first reference to Oswald as 5’10”, 165 pounds, was that offered by Oswald’s mother Marguerite to FBI Agent Fain in May 1960, when Oswald himself was absent in Russia.
The DPD officer contributing the description on the Police Channel was Inspector Herbert Sawyer, who allegedly had heard it from someone outside the Texas School Book Depository (TSBD) whom he could not identify or describe. The Warren Report said categorically that his source was Howard Brennan (WR 5), and that on the evening of November 22, Brennan “identified Oswald as the person in the lineup who bore the closest resemblance to the man in the window but he said that he was unable to make a positive identification” (WR 145). But there are many reasons to doubt this, starting with conflicts in Brennan’s own testimony (as Anthony Summers reported in Conspiracy, pp. 109-10) . And Ian Griggs has made a strong case that Brennan never saw Oswald in a line-up that evening. (There are police records placing Oswald in three line-ups that day, and corroborating witness reports of them; but there is no evidence whatever that Brennan attended any of the three.)
There is another strong reason to doubt that the source was Brennan. Brennan testified later to the Warren Commission that he saw his suspect in a window of the Texas School Book Depository, “standing up and leaning against the left window sill.” Pressed to describe how much of the suspect he saw, Brennan answered, “I could see probably his whole body, from his hips up. But at the time that he was firing the gun, a possibility from his belt up” (3 WH 144).
The awkwardness of Brennan’s language draws attention to the fundamental problem about the description. It is hard to imagine anyone giving a full height and weight estimate from seeing someone who was only partially visible in a window. So there are intrinsic grounds for believing the description must have come from another source. And when we see that the same description is found in Oswald’s FBI and CIA files — and nowhere else – there are reasons to suspect the source was from government secret files.
We have seen that there was interaction in Dallas between the WHCA and DPD radio channels, thanks to the WHCA portable radio that Lawson had installed in the lead car of the presidential motorcade. This radio in turn was in contact by police radio with the pilot car ahead of it, carrying Dallas Police Department (DPD) Deputy Chief Lumpkin of the 488th Army Intelligence Reserve unit. At the same time, as noted above, it was in contact with the COG nerve center at Mount Weather, Virginia. And Mount Weather had the requisite secret communications to receive information from classified intelligence files, without other parts of the government being alerted.
Permit me at this moment an instructive digression. It is by now well established that Kennedy in 1963 was concerned enough by “the threat of far-right treason” that he urgently persuaded Hollywood director John Frankenheimer “to turn [the novel] Seven Days in May into a movie.” In this book, to quote Wikipedia, a charismatic superior officer, Air Force General James Mattoon Scott, intend[s] to stage a coup d’état …. According to the plan, an undisclosed Army combat unit known as ECOMCON (Emergency COMmunications CONtrol) will seize control of the country’s telephone, radio, and television networks, while the conspiracy directs the military and its allies in Congress and the media from “Mount Thunder” (a continuity of government base based on Mount Weather).
It is no secret also that in 1963 Kennedy had aroused major right-wing dissatisfaction, largely because of signs of his increasing rapprochement with the Soviet Union. The plot of the book and movie reflects the concern of liberals at the time about generals like General Edwin Walker, who had resigned in 1961 after Kennedy criticized his political activities in the Army. (Walker had given his troops John Birch Society literature, along with the names of right-wing candidates to vote for.) We can assume however that Kennedy had no firm evidence of a Mount Weather conspiracy: if he had, it is unlikely his response would have just been to sponsor a fictionalized movie.
It is important at this stage to point out that, although COG elements like Mount Weather were considered part of the Pentagon, the COG “government in waiting” was at no time under military control. On the contrary, President Eisenhower had ensured that it was broadly based at the top, so its planners included some of the nation’s top corporate leaders, like Frank Stanton of CBS. By all accounts of COG leadership in the decades after Reagan took office in 1981, this so-called “shadow government” still included CEOs of private corporations, like Donald Rumsfeld and Dick Cheney, as well as three former CIA directors: Richard Helms, James Schlesinger, and George Bush.
Alfonso Chardy wrote in 1987 that the “virtual parallel government” empowering North to run Iran-Contra had also developed “a secret contingency plan that called for suspension of the Constitution, turning control of the United States over to FEMA.” Subsequently North was questioned in the Iran-Contra Hearings about this charge, but was prevented by the Committee Chairman, Democratic Senator Inouye, from answering in a public session.
Later, investigating the powerful COG planning group, CNN called it “a hidden government [in the USA] about which you know nothing.” James Mann emphasized its hawkish continuity, unaffected by changes of presidency in the White House:
Cheney and Rumsfeld were, in a sense, a part of the permanent, though hidden, national security apparatus of the United States, inhabitants of a world in which Presidents come and go, but America always keeps on fighting.”
Going one step further, Andrew Cockburn quoted a Pentagon source to support a claim that a COG planning group under Clinton was now for the first time staffed “almost exclusively with Republican hawks.” In the words of his source, “You could say this was a secret government-in-waiting. The Clinton administration was extraordinarily inattentive, [they had] no idea what was going on.”
The Pentagon official’s description of COG planners as a “secret government-in-waiting” under Clinton (which still included both Cheney and Rumsfeld) is very close to the standard definition of a cabal, as a group of persons secretly united to bring about a change or overthrow of government. A very similar situation existed under Jimmy Carter, when some of those who would later figure in Iran-Contra (notably George H.W. Bush and Theodore Shackley) worked with chiefs of foreign intelligence services (the so-called Safari Club) “to start working with [former DCI Richard] Helms [then U.S. Ambassador to Iran] and his most trusted operatives outside of Congressional and even Agency purview.” This group began by backing guerrilla forces in Africa (notably UNITA of Jonas Savimbi in Angola), which they knew would not be backed by the CIA under William Colby or Stansfield Turner.
But some of these figures, notably Alexandre de Marenches of the French spy agency SDECE, became involved with Casey, Bush, Shackley, and others in a 1980 plot – the so-called Republican “October Surprise” – to prevent the reelection of Jimmy Carter. The essence of this plot was to frustrate Carter’s efforts to repatriate the hostages seized in the U.S. Tehran Embassy, by negotiating a Republican deal with the Iranians that would be more to their liking. (The hostages in fact were returned hours after Reagan took office in 1981.)
This Republican hostage plot in 1980 deserves to be counted as a fifth structural deep event in recent US history. Unquestionably the illicit contacts with Iran established by the October Surprise Group in 1980 became, as Alfonso Chardy wrote, the “genesis” of the Iran-Contra arms deals overseen by the COG/ Mount Weather planners in 1984-86.
In an important interview with journalist Robert Parry, the veteran CIA officer Miles Copeland claimed that a “CIA within the CIA” inspired the 1980 plot, having concluded by 1980 that Jimmy Carter (in Copeland’s words) “had to be removed from the presidency for the good of the country.” Copeland made it clear to Parry that he shared this view that Carter “represented a grave threat to the nation,” and former Mossad agent Ari Ben-Menashe told Parry that Copeland himself was in fact “the conceptual father” of the 1980 arms-for-hostages deal, and had “brokered [the] Republican cooperation with Israel.” And Copeland, together with his client Adnan Khashoggi whom he advised, went on with Shackley to help launch the 1984-85 Iranian arms deals as well.
However, just as Knebel in Seven Days may have overestimated the military component in the COG Mount Weather leadership, so Copeland may have dwelt too exclusively on the CIA component behind the October Surprise Group. In The Road to 9/11, I suggested that this CIA network overlapped with a so-called “Project Alpha,” working at the time for David Rockefeller and the Chase Manhattan Bank on Iran issues, which was chaired by the veteran establishment figure John J. McCloy.
I will conclude by again quoting James Mann’s dictum that the Mount Weather COG leadership constitutes a “permanent, though hidden, national security apparatus of the United States, … a world in which Presidents come and go, but America always keeps on fighting.” And I would like this audience to investigate whether elements of this enduring leadership, with its ever-changing mix of CIA veterans and civilian leaders, may have constituted “a secret government-in-waiting,” not just under Clinton in the 1990s, not just under Carter in 1980, but also under Kennedy in November 1963

KOCH BROTHERS DIRTY MONEY

JADE HELM 15 and the American Massacre

 JADE HELM is NOT “an ordinary training drill”

Thursday, April 23, 2015

by Jim Fetzer

Something is wrong at Veterans Today. A former Marine, who has published many articles here, was slammed by Gordon Duff and by Jim Dean for perpetrating “a hoax” by raising concerns about this mysterious “training op” called JADE HELM. I admire VT and like Gordon personally, although from time to time we have a divergence in our point of view. I have never felt as positive about Jim Dean because, as an old-time reporter and editor, he has come across to me as having an anti-academic prejudice, which I as a former professor have sensed from our initial encounters. But that doesn’t mean he’s wrong. Robert O'Dowd But let’s consider the case of this article and its author, Robert O’Dowd. Although I had not read any of his work at VT before, I thought it was raising a perfectly appropriate issue as to whether or not JADE HELM, which is an operation that covers at least seven states (and now seems to have expanded to five or six more) could possibly be the cover for imposing martial law under the pretext of conducting operations in urban settings, which are meant to train personnel “for foreign operations”, where nothing about this has struck me as right from the beginning. As a consequence, I was glad to see he had published about it: O'Dowd's article with Editor's Note But I could hardly believe the response from Gordon and Jim. Not only did they “tag team” Robert and imply that he had been played for a sap but asserted that, “We have checked our sources who would be in a position to know if something like this were going on, and it categorically is not.” The problem with this approach is that we ordinary readers are not in the position to verify “their sources”. This is a classic appeal to authority, where we are supposed to take their word for it. And while I might be disposed to accept those assurances on routine matters, in this instance, the case of JADE HELM is anything but “routine”.

Jim Dean piles on

It further astonished me that Jim Dean would reiterate his and Gordon’s position in both the facebook and ordinary comments sections on O’Dowd’s article, which you can easily confirm for yourself. This left some readers, such as Bonny Amey, at a loss as to exactly what was going on. And, indeed, others expressed concern, even in the ordinary comments section, where O’Dowd (in my view, with complete justification) submitted his resignation as a journalist for VT on facebook, explaining that he did not appreciate being used as a whipping boy for having published “a bogus story”, especially when the facts are still in doubt: Jim Dean comment Exchange between Bonnie and O'Dowd Robert O'Dowd's resignation

So is this “a bogus story”?

The fellow who seems to be arranging this op and speaking about it in public is one Tony Mead, where his characterization of “JADE HELM” is reasonably elaborate, involving the use of Army Green Berets, Navy SEALS and representatives of the other branches of the US military, which suggests that those who have asserted that this only involves “the national guard” appear to be wrong. Indeed, if what he is telling us in this video presentation is correct, then the appeal to “the national guard” is a bogus story, which troubles me because I heard it from Gordon Duff. But perhaps he had not looked into the situation deeply enough.

If Gordon had not looked into the situation “deeply enough”, however, then it makes no sense for him to have attacked Robert’s article and assailed him as a dupe who was pushing “a bogus story”. I was troubled enough by all of this that I brought together a group of four guests, including Terri from Nebraska (who had sent me many links), Robert O’Dowd himself (as the one who had raised this issue on VT), Preston James (whom I regard as one of the most astute intellects I have ever known), and last but not least (as a late arrival), Dennis Cimino (with whom I have co-authored multiple articles here) to try to sort all this out:

While I think we made progress in sorting this out, none of our considerations supported the idea that this was “a bogus story” and that no one should be concerned. It came as news to me when my producer, Chance, observed that a parallel operation is taking place in Canada under the name of “Maple Resolve”, which includes closing some 133 Target Stores, not merely for the two months the operation is officially supposed to run but for nine months at the cost of some 17,000 jobs, where their former employees are even being encouraged to find other lines of work. In my opinion, this alters the equation and leaves no doubt:

What conclusion should we draw?

Dave Hodges-Canadian troops to assist US Several features of “the big picture” strike me as enormously important. Walmart and Target are stores with mass appeal for the middle and lower class of both Canadian and American society. That some 15 Walmarts should be taken over in the United States alone and now another 133 Targets in Canada is alarming! There is nothing “bogus” about this story. And other sources, such as David Hodges’ “Common Sense Show” have made equally telling observations about the redistribution of resources for a purported “training op” when it entails the dismissal of 17,000 employees, who no doubt are being left in desperate straits: Operation Maple Leaf Some simple calculations

So what conclusions do I draw from my investigations to this date? Gordon Duff and Jim Dean were wrong to censor Robert O’Dowd, whose article was entirely appropriate for a journal devoted to “clandestine activities”. JADE HELM is not a “training op” but something far more serious. When you calculate the profits per store to Walmart and to Target, they are taking an enormous hit, which can only be for some transcendent purpose that override “the conduct of business as usual”. (We are talking about billions of dollars in lost profits, not to mention the loss of highly qualified, experienced personnel to stock products, to resupply those facilities and to process check outs and deliveries.) As an investigative journalist for Veterans Today, I am committed to doing my best to expose the truth, even when it conflicts with the views of Gordon Duff and Jim Dean, who are at liberty to deal with me as severely as they dealt with Robert O’Dowd. I am committed to serve my nation and its best interests, which I do, come what may.

Friday, May 1, 2015

JADE HELM and the American Massacre

By Zen Gardner 


8 47
I’m prefacing my thoughts with this provocative title for a reason. What is being perpetrated on the American people is virtually a complete dissembling of everything they supposedly hold dear and will only lead to their ultimate destruction. A nationwide massacre of their infrastructure, personal rights and protection, and even livelihoods and food security is not only at stake, but now in progress.

Here are the key points about JADE HELM:

1. Jade Helm is a military exercise endorsed by the American government and perpetrated on its own people in complete violation of not just the Posse Comitatus Act of 1878 but is a total affront on every civil liberty the US Constitution and Bill of Rights is supposed to espouse and maintain.
2. Occupying sovereign territory with a nation’s own armies indicates the very people for which a government was established to help provide for and protect are their declared enemy.
3. The fabricated external threat of terrorism has been deftly translated into meaning that anyone challenging the status quo, be it political, economic or psycho-spiritual, is the enemy. Not external enemies but domestic, as has always been the case, but openly declared since the first so-called Patriot Act. Dissent has become illegal and they’ve virtually declared any thinking American an enemy of the State with a litany of laws, rules and regulations at their disposal while mechanisms set in place long ago to protect personal rights have been eviscerated.
4. The very massive size of this operation and the vast amounts of military hardware pouring into distribution locations around the country indicates this is not just an exercise, but a stealth occupation, at the very least designed to intimidate and acclimatize the American mindset to living in virtual martial law conditions, while they step up their preparations for worse social conditions to come.
5. As wars rage on against supposed terrorists abroad, targeting a nation’s own citizens in such draconian measures makes absolutely zero sense, when hardly a non-government induced “terror” incident has transpired. Many more have died from medical and pharmaceutical abuse, police killings and even strikes by lightning, along with a host of other causes. Where’s the big brave justice league on the real problems?
6. The inherent doctrines of personal freedom and individual sovereignty are being violated with abject impunity, a repugnant affront on human dignity.
7. The question haunts: Who’s even noticing? Besides those that fall for the supposed need for such a massive operation, how many are totally ignorant that it is even happening?

The Potential Outcome of this Maneuver?
a. Anything could trigger this operation to go “live”, as has happened repeatedly with such staged government sponsored operations.
b. One resisting individual, real, or more plausibly planted, could cause a chain reaction of events that would be devastating.
c. A typical false flag attack on these infiltrating government deployed forces would easily justify a strong armed response, be the incident a lone personal reaction, staged sniper fire, a planted bomb on a military vehicle, or something or things much worse. Such triggers within a staged drill or exercise have proven to work time and again.
d. Problem-reaction-solution. Since they’ve created the problem of imposing military control and its intrusions on personal freedoms, so-called practiced or otherwise, the reaction would no doubt be begged. Once the reaction appears from whatever quarter, real or simply reported to have happened, the justification for full on mobilization against the American people, designed from the outset, goes into play. Confiscation of guns and all potential weapons is clearly on the agenda as they’ve been practicing for years following natural and unnatural disasters. Precious metals, large amounts of cash, and even stockpiled food could easily be on the list as well.

Conclusion

This Jade Helm 15 operation is no simple exercise. At the very least it is conditioning Americans for more control, even less personal freedom in the metastasizing surveillance state, and something worse in the near future. The bare fact remains that too many will fall for it and continue to stand back in fear and obedience to false, illegitimately imposed fascist controls backed by brute force.

The time is now to withdraw your consent and participation in such fear and obeisance mongering.

See what is happening for what it is. And sound the alarm. Our full awareness of the nature of these staged operations and broadcasting it far and wide has pushed them back before, and we can do it again. Let your awareness, indignation and refusal to accept this be known far and wide.
And be prepared. They’re up to no good and it’s all completely staged for specific reasons. Don’t give them the response they want.
Stay lit with truth.
Spread the word, disengage from their systems, and keep your peace.
Love, Zen

9-11Truth History Made in Danish Court

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9/11 History Made in Danish High Court

From the expression on one judge’s face — a look of disbelief that 9/11 skeptics know quite well — it was obvious he had never before seen the video.

WTC 7 & Nano-thermite Evidence Admitted

By Josef Hanji

Copenhagen, Denmark — March 14, 2015

In an article titled “Madness in the Royal Library” published in the Danish newspaper Weekendavisen on December 7, 2012, journalist Søren Villemoes accused esteemed chemist Dr. Niels Harrit of being a “crackpot” for daring to conclude that the destruction of three World Trade Center towers on September 11, 2001, was a controlled demolition.

Harrit, a 40-year professor of chemistry at the University of Copenhagen and co-author of a scientific paper on the nano-thermite found in dust samples taken from Ground Zero, filed a libel lawsuit against both the newspaper’s editor, Anne Knudsen, and the offending journalist. After he lost his case in City Court on August 16, 2013, he appealed to the Danish High Court.

The High Court set a court date of March 12, 2015, for the case to be tried. Last month, Architects & Engineers for 9/11 Truth informed Harrit’s supporters of the impending appeal and helped raise funds from those supporters to pay his legal expenses.

Below, we will describe how Dr. Harrit’s appeal fared.

The High Court session had it all — persuasive forensic evidence, courtroom drama, and the strong voice of a reputable scientist who expertly defended the basic laws of physics as well as the evidence of nano-thermite in the WTC dust. Though the verdict will not be known until April 9, it is clear to this observer that Dr. Harrit did an excellent job, not only solidifying his integrity and expertise in the eyes of the public, but also advancing the cause of the 9/11 Truth Movement in the process.

Though the High Court case was to convene at 9:30 AM, the court room was already 80% full by 9:00 AM. The 16 seats on the court benches quickly became 20 as people moved closer together. Four more chairs were brought in, but after they, too, were quickly occupied, other would-be onlookers were turned away. By the time the three judges entered the court room, it was filled to capacity.

The trial started with Dr. Harrit, who represented himself, asking the court to indulge him as he reviewed the City Court trial and verdict. He also requested the judges’ guidance in case he made any mistakes during the proceedings. In fact, the legal counsel he had received in advance from Danish attorney Mads Krøger Pramming, chairman of the Danish whistleblower organization Veron, made Harrit’s presentation mistake-free. This observer got the impression that, had he not chosen to study and teach chemistry, Dr. Harrit would have made a formidable lawyer.

On display was not only the intellect of a professor who inspires students but the prowess of a music and theater performer who impresses audiences — the latter talent developed in Harrit’s after-hours during many of his 70 years. Combining his classroom and stage skills, he proved himself a masterful speaker as he read the “Madness in the Royal Library” article aloud to the judges.

In it, Villemoes had written about a 2012 art exhibition at the Royal Library of Denmark that portrayed “The Armenian Genocide.” Calling it “madness” for the library’s director to have allowed the Turkish government to also tell its side of the genocide story, Villemoes went on to cite other examples of “madness”: the beliefs of creationists, Holocaust deniers, and 9/11 skeptics such as Dr. Harrit. Indeed, while Dr. Harrit’s reading was as compelling as listening to a great musician performing, it was his sincerity that caught everyone’s attention.

Finally, it was time for Dr. Harrit to present the first piece of new evidence. He projected a video of World Trade Center Building 7’s collapse onto the wall of the High Court. As the video played the 6.5-second collapse of the 600-foot, 47-story building over and over, the professor described what was happening, and in so doing showed himself to be a logical scientist who naturally had questions about a phenomenon that was identical in appearance to a controlled demolition. From the expression on one judge’s face — a look of disbelief that 9/11 skeptics know quite well — it was obvious he had never before seen the video. Whether the other two judges had watched the collapse of WTC 7 before is hard to say; their faces were inscrutable. Making the judges watch WTC 7 fall again and again was what Dr. Harrit later called his biggest achievement of the day.

Dr. Harrit also presented various documents he had submitted as attachments to the case, including the Architects & Engineers for 9/11 Truth petition (currently signed by 2,332 credentialed architects and engineers and 20,100 other supporters), the 2009 nano-thermite report he co-wrote with a team of scientists (“Active Thermitic Material Found In The Dust From The 9/11 World Trade Center Catastrophe”), the AE911Truth-sponsored polls taken by professional pollsters in the USA and Canada (in both countries, roughly half of those surveyed believed, after being shown the collapse of WTC 7, that it either definitely was or most likely was a controlled demolition).

Next, the plaintiff quoted from the 2005 report published by the National Institute of Standards and Technology, which purportedly explained the collapse of The Twin Towers. He homed in on what he considers to be the most important footnote written since WWII — namely, footnote 13 on page 82.

First Dr. Harrit read it to the judges in English:

Blockquote tall Or

The focus of the investigation was the sequence of events from the instant of aircraft impact to the initiation of collapse for each tower. For brevity in this report, this sequence is referred to as the “probable collapse sequence,” although it does not actually include the structural behavior of the towers after conditions for the collapse initiation were reached and collapse became inevitable.

Then he translated it into Danish. He went on to explain that the footnote was a prime example of “academic terror” in the NIST report. That is, not even a reader trained in physics and familiar with physics reports would be able to understand what this footnote said when reading it for the first time. The professor’s point was proved when the judge in charge of keeping the court protocols asked Dr. Harrit to translate the last sentence again.

Dr. Harrit pointed out that between the lines in this footnote NIST was actually admitting that there is no public theory on how the North Tower and South Tower were destroyed, nor is there an explanation of the collapse sequence, as the report stops at the moment the towers were about to go down. Upon hearing this explanation, the accused Søren Villemoes raised his eyebrows in seeming surprise and leaned back in his chair.

The day of 9/11 Truth evidence schooling for Villemoes and the judges had hardly begun. The plaintiff proceeded with the next bit of evidence: A screenshot from a Facebook update Villemoes had written the day after the City Court trial in 2013 showed him admitting that he had not been fair to Dr. Harrit.

After Dr. Harrit had presented his case to the High Court, it was time for the four witnesses to take the stand, one by one.

A young lawyer representing Villemoes (substituting for lawyer Søren Juul, who had handled the case in City Court) rose from his chair and started speaking. Acting nervous and seeming unprepared, he started asking Niels Harrit questions in a barely audible voice. He tried to make a case to the court that Dr. Harrit was saying the United States itself was behind the 9/11 attacks. To that charge, Harrit replied that he was a natural scientist and that he has conducted science-based presentations on the collapse of WTC 7 more than 230 times without ever pointing fingers at any suspects. “I believe in the rule of law,” Dr. Harrit said, “and there has never been any a legal investigation of 9/11 in court, making it impossible for a person like me, who believes in the law, to name anyone who should have committed the crime.”

Villemoes then took the stand. Harrit first asked the journalist about the 2013 Facebook comment he had made about not having treated the chemist with fairness. Villemoes answered that he had felt pity on Dr. Harrit after the City Court case. Next, Harrit brought up a statement Villemoes had made in City Court, in which he claimed to have seen Harrit’s lecture about WTC 7 but couldn’t remember where he had seen it. Villemoes answered that he now recalled the lecture had been on the Danish island of Bornholm. Harrit pointed out that he had given that lecture in June 2013, just two months before the City Court date. He remarked how odd it was that Villamoes couldn’t remember (in City Court) where he had seen it two months earlier but could now remember it (in High Court) one and a half years later. “For how long did you watch my lecture?” Dr. Harrit then asked. Villemoes replied that he had seen only five minutes of the 2½-hour long lecture — an answer that revealed his factual basis for criticizing Dr. Harrit to be exceedingly weak.

Villemoes twitter harrit fav

In City Court, Villemoes had claimed that the WTC dust in the nano-thermite report could have been unauthentic. That charge gave Dr. Harrit a reason to submit the WTC dust as evidence to the High Court. In so doing, Dr. Harrit verified the authenticity of his dust samples by pointing to two photographs on page 24 in the nano-thermite report, which showed the same kind of iron microspheres found in the dust by RJ Lee Group in 2003 and by the US Geological Survey in 2005. He then held before Villemoes a plastic bag with his own sample of WTC dust, dragging a strong magnet along the side of the plastic, trying to make a little rim of black particles gather near the edges of the magnet. On the first attempt, Villemoes failed to see the black rim. But on the second try, he said he could see it, and Dr. Harrit told him that, since we all know that magnets attract iron, this was the iron microspheres being separated from the dust particles not containing iron. This was proof that a thermitic reaction had taken place on 9/11, Dr. Harrit told Villemoes.

After a short break, the court reassembled to carry on with the two last witnesses. One witness was architect Jan Utzon, who had worked on recent projects for the Sydney Opera House in Australia, which his father Jørn had designed nearly 50 years earlier. The other witness was a former colleague of Dr. Harrit, Per Hedegaard, who taught physics at the Niels Bohr Institute at the University of Copenhagen.  Utzon had already taken the stand as a witness in City Court, where he represented AE911Truth and its signatories. Dr. Hedegaard was a new witness who purportedly had changed his position from being against the theories presented by Dr. Harrit to admitting that the official explanation of what happened to WTC 7 was in violation of Newton’s laws of physics.

Jan Utzon reiterated the testimony he had already given at City Court, telling the judges that no steel-framed high-rise has ever collapsed due to fire and that he had no doubts about the collapse of WTC 7 being a controlled demolition.

When Per Hedegaard finally entered the court room, he looked nervous and confused. Asked specific questions by Dr. Harrit, he was unable to give direct answers. For example, even though the looping video of the collapse of WTC 7 was shown a second time during the testimony of Utzon and a third time when he took the stand, Dr. Hedegaard said he could not see any violation of physical laws. While agreeing that the collapse of WTC 7 looked close to free-fall acceleration, he noted that it was too complicated for him to say for sure.

“But what does it mean when a building is falling 9.8 metres per second squared, Per?” Harrit asked. The professor of physics said he did not know. “This means the building is in free fall, Per,” Harrit elaborated. “And when a building is in free fall, is there then energy left to destroy the supporting structure?” Hedegaard’s answer was confusing. He talked about how energy moved faster than free-fall and suggested that WTC 7 could have fallen even faster than free-fall.

“But Per, you told me you had looked at the data, and that you supported it,” Harrit responded. Again, Hedegaard gave a confusing answer. The judge in charge of court protocols asked the witness what data it was that he actually supported. “Only the report,” he replied, referring to the nano-thermite report. “I read some of it, and it looked good.”

Hedegaard had earlier calculated, on his own, that at least 60 tons of thermite would have been needed to take down the Twin Towers, and on that basis he found it difficult to believe that controlled demolition had been used to level those two buildings.

Though Hedegaard did say he found the nano-thermite report “good,” his other answers were clearly not what Harrit had been expecting. An obviously disappointed Harrit told the judges he had no more questions for the witness.

Villemoes’ lawyer asked Hedegaard if he could support statements he had made about Harrit quoted in an article used in City Court — statements substantiating that Dr. Harrit was a “crackpot”. Hedegaard replied that he still agreed with his statements in the article, in which he had called Harrit’s theories “nuts.” That became the final answer from the last witness of the day.

After a lunch break, the High Court reconvened and gave both Niels Harrit and the lawyer for the accused Villemoes each 30 minutes to give their final statement, called a procedure.

Those who had seen the outstanding procedure Harrit gave in City Court 1 ½  years earlier now witnessed a procedure that was even more brilliant, displaying the skills of a top-drawer attorney. He named paragraph 267 of the Danish Criminal Code and Article 10, Sections 1 and 2, of the European Human Rights Convention, pointing out that should Villemoes be found not guilty, then the Danish criminal code is obsolete. All other libel cases tried in Danish courts, he said, have been decided based upon the occurrence of a factual basis for the utterance. Yet in this case, Harrit declared, “We have seen no facts from Villemoes showing any kind of factual basis for his claims. And this is why the court must find him guilty in libel, according to the law.”

Harrit referred to the historical court case against Galileo Galilei in 1633, where the accused was brought in front of the inquisition of the Roman Catholic Church and tortured until he renounced his belief that the earth rotated around the sun and acknowledged that the earth was the center of the universe.

When he concluded his procedure, there was no doubt that Dr. Harrit had made an impact upon the High Court. The three judges looked as if they approved the legal points he made, and both Villemoes and his lawyer appeared a bit shaken.

Villemoes’ lawyer, in his procedure, said there was no reason to put forward a factual basis for the statements his client made in the article, as it could be read in all the official 9/11 reports. His statement seemed weak compared to all the evidence brought forward during the day — evidence showing that it is more than reasonable to question the official 9/11 story about Osama bin Laden and the 19 alleged hijackers who, armed with box cutters, managed to carry out a highly coordinated attack on the world’s most advanced military power.

The judgment from the three High Court judges runs for four weeks from the court date, meaning the verdict will be announced on April 9, 2015, at 10 AM Denmark time. Coincidentally, this date is precisely 75 years after the 1940 German occupation of Denmark during WWII. On April 9, 2015, we will see whether the system of justice in Denmark protects the free speech of the common man or continues the deception that has plunged the world into an endless “War on Terror.” Hopefully, we will one day look back on this date as the occasion when the Danish High Court acknowledged that skepticism about the official story of 9/11 is a legitimate way of thinking and ordered that it be protected within the Danish laws of free speech.

Less than an hour after the trial ended, Dr. Harrit did this interview with www.911truth.dk, in which he gives his view of the High Court meeting.

Besides listening to that interview, you can visit Niels Harrit’s Facebook page, which details his contributions to the 9/11 Truth Movement.

Support from all over the world for this High Court case has been overwhelming to both Dr. Harrit and the 9/11 activists who helped raise awareness for this historical event. Thank you to all who have followed and supported his case. May justice be served.

Post by Josef Hanji

ANONYMOUS HQ

http://anonhq.com/ REALHEROSPROOF3posterReal American heroes do not wear uniforms or carry weapons, they tell the truth and fight tyranny.

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https://johneagleland2.wordpress.com/2015/03/24/chris-hedges-the-myth-of-human-progress-and-the-collapse-of-complex-societies-full-speech/

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Rights

Mother Calls NYPD For Help; Cops Racially Assault Her, Send Kids To Foster Care

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ACTIVISM

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Mother Calls NYPD For Help; Cops Racially Assault Her, Send Kids To Foster Care

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POLITICS
  • 33% of Americans Out Of Workforce, Highest Since 1978

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    33% of Americans Out Of Workforce, Highest Since 1978

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TECHNOLOGY

Bank of America Is Under Attack By Hackers

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Is Scott Walker related to George Bush ? It’s The DUBBAYA.

scott

Is Scott Walker related to George Bush?

Fritz Springmeier | Bloodlines of The IlluminatiTHE WALKER FAMILY:An elite family tied in with the Bush family. Tonight I received the following questions: “Hey Fritz, does the Walker family fit into the Illuminati at all? As in Scott Walker. Is he related to George H. Walker Bush through ancestry? Just wanted to get your opinion on Scott.”

THE ILLUMINATI WALKERS.

The elite Walker & Bush families are intertwined, and this can be seen especially with their attendance at Yale, and their membership in the Order of Skull & Bones. At least ten important members of the presidential Bush family have gone to Yale. Likewise, if we count Davis R. Robinson who married Suzanne Walker, then at least ten of the important elite Walker family have gone to Yale University. 15 of the Walker family became members of the Order of Skull & Bones, at least 7 have been members of the CFR, & at least 3 mmbrs of the Cosmos Club. When George H.W. Bush was initiated into S&B, he was joined with classmate Samuel Sloane Walker, Jr. George H.W. Bush (King Geo. 1) nominated his cousin John M. Walker, Jr. to a Federal judgeship. But not all of the elite Walkers are necessarily of the same bloodline. Walker is a surname that comes from Scotland, England, the lowlands (Neth. & Belg.) & Germany. One of the prominent Walkers is Darren Walker, a black banker, who has been v.p. of the Rockefeller Foundation, pres. of the Ford Foundation, and an advisor for Rockefeller Philanthropy.

WALKER HISTORY.

I have not done special genealogy research on the Walkers, which would be required to discover possible distant relationships between different lines. The first prominent Walker of the bloodline associated with the Bush family was David David (D.D.) Walker, who made a fortune during the Amer. Civil War. His son, known as Bert, was George Herbert Walker. I will call him Bert…and Bert was an exceptionally greedy unprincipled man, who scared his sons to death & was called by them a “tough bastard” as well as other names. He’d do anything for money. Bert as a banker foreshadowed the Bushes in the Silverado S&L scandal. Bert pillaged the Missouri Pacific Railroad causing an Enron type scandal which resulted in a congressional investigation. In the end, FDR had to reorganize the railroads and place them under the ICC. Prescott Bush married Bert’s daughter Dorothy, and they named their first son (our first Bush pres.) after Bert. Two Walkers were special assistants to the president: Ronald Hugh Walker and Jenonne R. Walker. I know of 5 Walkers who were bankers, incl. Charles Edward Walker, who was an advisor to the Fed. Reserve Bank of Phila. I only know of one Walker who was in military intelligence.

SCOTT K. WALKER.

WALKERun copy

Like all his Fascist buddies and ruling class corporate criminals, Scott K. Walker-Bush has a passion for Fascist Fashion. See the season sneak peak of the Red, Right & White Wing Nut Party’s new STUN (G)UN  Look for 2016. (See TOTALLY UN-COOL) at Puppet Master’s Slave Market : https://johneagleland2.wordpress.com/

Besides being judges, ambassadors, & congressmen, a number of Walkers have been governors of GA, FL, IL, UT and WI. Scott is governor of Wisconsin, and was born to a preacher in Colorado Springs and a mother named Patricia Walker. Scott went from obscurity to political stardom overnight—which to me suggests connections, but I am lacking any connecting details between him & the branch that is close to the Bushes. In 2010, George Bush Jr., while ex-president, went to Beloit, WI & referred to Scott Walker as his “cousin” but what he meant by that is up for discussion. Scott is a Republican like the Walker-Bush families & has been a close friend of George W. Bush as well as one of his campaign helpers. Geo. Jr. has said lots of silly nonsense comments so who knows what the real blood connection is between the Scott & George. For sure they are close friends. (And by the way, Scott never went to Yale or Harvard.) While I can answer that some of the Walkers have been Illuminati, I am unable to answer if or how Scott K. Walker might be related to that branch. That could be an interesting genealogy project for someone.

NBC Censors Edward Snowden’s 9/11 Comments

Published on May 30, 2014

Statements made by NSA whistleblower Edward Snowden regarding the 9/11 terror attacks were edited out of his NBC Nightly News interview with Brian Williams Wednesday in what appears to be an attempt to bolster legitimacy for the agency’s controversial surveillance programs.

Read Snowden’s comments on 9/11 that NBC didn’t broadcast

Published time: May 30, 2014 17:13
Edited time: June 01, 2014 19:51

This NBC News handout video frame grab shows an NBC News Exclusive interview with Brian Williams and Edward Snowden, excerpted from the May 28, 2014 TV primetime special. (AFP Photo / NBC NEWS / Handout)

This NBC News handout video frame grab shows an NBC News Exclusive interview with Brian Williams and Edward Snowden, excerpted from the May 28, 2014 TV primetime special. (AFP Photo / NBC NEWS / Handout)

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​Only around a quarter of the recent NBC News interview with former intelligence contractor Edward Snowden made it to broadcast, but unaired excerpts now online show that the network neglected to air critical statements about the 9/11 terrorist attacks.

When the four-hour sit-down between journalist Brian Williams and Snowden made it to air on Wednesday night, NBC condensed roughly four hours of conversation into a 60-minute time slot. During an analysis of the full interview afterwards, however, the network showed portions of the interview that didn’t make it into the primetime broadcast, including remarks from the former National Security Agency contractor in which he questioned the American intelligence community’s inability to stop the September 11, 2001 terrorist attacks.

In response to a question from Williams concerning a “non-traditional enemy,” Al-Qaeda, and how to prevent further attacks from that organization and others, Snowden suggested that United States had the proper intelligence ahead of 9/11 but failed to act.

“You know, and this is a key question that the 9/11 Commission considered. And what they found, in the post-mortem, when they looked at all of the classified intelligence from all of the different intelligence agencies, they found that we had all of the information we needed as an intelligence community, as a classified sector, as the national defense of the United States to detect this plot,” Snowden said. “We actually had records of the phone calls from the United States and out. The CIA knew who these guys were. The problem was not that we weren’t collecting information, it wasn’t that we didn’t have enough dots, it wasn’t that we didn’t have a haystack, it was that we did not understand the haystack that we have.”

“The problem with mass surveillance is that we’re piling more hay on a haystack we already don’t understand, and this is the haystack of the human lives of every American citizen in our country,” Snowden continued. “If these programs aren’t keeping us safe, and they’re making us miss connections — vital connections — on information we already have, if we’re taking resources away from traditional methods of investigation, from law enforcement operations that we know work, if we’re missing things like the Boston Marathon bombings where all of these mass surveillance systems, every domestic dragnet in the world didn’t reveal guys that the Russian intelligence service told us about by name, is that really the best way to protect our country? Or are we — are we trying to throw money at a magic solution that’s actually not just costing us our safety, but our rights and our way of life?

Indeed, the director of the NSA during Snowden’s stint there, Gen. Keith Alexander, reportedly endorsed a method of intelligence gathering in which the agency would collect quite literally all the digital information it was capable of.

“Rather than look for a single needle in the haystack, his approach was, ‘Let’s collect the whole haystack,’” one former senior US intelligence official recently told the Washington Post. “Collect it all, tag it, store it. . . .And whatever it is you want, you go searching for it.”

In recent weeks, a leaked NSA document has affirmed that under the helm of Alexander, the agency was told it should do as much as possible with the information it gathers: “sniff it all, know it all, collect it all, process it all and exploit it all,” according to the slide.

“They’re making themselves dysfunctional by collecting all of this data,” Bill Binney, a former NSA employee-turned-whistleblower himself, told the Daily Caller last year. Like Snowden, Binney has also argued that the NSA’s “collect it all” condition with regards to intelligence gathering is deeply flawed.

They’ve got so much collection capability but they can’t do everything. They’re probably getting something on the order of 80 percent of what goes up on the network. So they’re going into the telecoms who have recorded all of the material that has gone across the network. And the telecoms keep a record of it for I think about a year. They’re asking the telecoms for all the data so they can fill in the gaps. So between the two sources of what they’ve collected, they get the whole picture,” Binney said.

Although NBC neglected to play Mr. Snowden’s remarks to Williams in which he questioned the efficiency of modern intelligence gathering under the guise of being a counterterrorism tool, it did air on television other remarks from the former contractor concerning the terrorist attacks.

It’s really disingenuous for the government to invoke and sort of scandalize our memories to sort of exploit the national trauma that we all suffered together and worked so hard to come through to justify programs that have never been shown to keep us safe, but cost us liberties and freedoms that we don’t need to give up and our Constitution says we don’t need to give up,” he said in an excerpt broadcast on air.

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September 29, 2014

BREAKING: 9/11 False Flag Validated in Edward Snowden NSA Data Dump 10

STATE OF THE NATION

Russia Disseminates, Snowden Validates, NSA Evidence Corroborates New 9/11 Data Dump

    “This 9/11 data dump is so radioactive the US Government will likely collapse.  The world will never be the same when nations everywhere see this report!”
    – Veteran 9/11 Investigator

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Veterans Today - James Preston

UPDATE:  Published on Sep 30, 2014

By Preston James

This video was part of a longer clip in a recent VT Radio show, of which I’ve removed about 40 minutes, to focus on the section, which drills down to a now-infamous alleged Russian “data dump” shared with Gordon Duff, Senior Editor of Veterans Today about the “real” perpetrators and methods and means used in the 9/11 attacks.

This information was supposedly given to him to share to the public at-large, in reprisal for the US government’s economic sanctions against Russia, ever since Crimea and East Ukraine voted overwhelmingly to secede from the US-NATO-installed regime in Kiev, however, one veteran 9/11 researcher claimed on Pakalert Press: “This 9/11 data dump is so radioactive the US Government will likely collapse. The world will never be the same when nations everywhere see this report!”

Some names are familiar, others I’ve never been connected to these historic events. There are definitely many surprises, here – but it certainly makes more sense, on several levels, than the treasonous and absurd Official 9/11 Report.

Duff stops short of naming names, but their job descriptions give them away. What might be most shocking are how many names often associated with the attacks are absent, in what has been promised to be an ongoing series of similar Russian data dumps.

Last week, UK Prime Minister David Cameron’s call, during his address to the UN that, just as the murderous and “warped worldview” of ISIS must be stopped, so must the words and websites of peaceful 9/11 and 7/7 “Truthers,” which he termed to be just as dangerous as “Nazis or KKK recruiters,” as he unveiled a plan to use a full assault on dissenting views by forming a Commission to fight “So-Called Non-Violent Extremism,” while allowing that “Some will argue that this is not compatible with free speech and intellectual inquiry.”

Indeed: dangerous to the perpetrators. The coincidence of this toady’s statements with this data dump should not be lost on anyone.

Original Post

When Edward Snowden opted to stay in Russia after fleeing the USA little did he know that the NSA treasure trove he absconded with would serve as the basis for so much 9/11 revelation.  The existence of this extraordinary cache of NSA evidence documenting criminal activity conducted at the highest levels of government has empowered Russia to reveal 9/11 Truth with unimpeachable authority.  Hence, the Kremlin now conducts periodic and strategic data dumps concerning the real facts surrounding the events of 9/11.

The Kremlin has permitted the release of earth-shattering material which is generally known on the internet as 9/11 Truth.  The world is starving for such unvarnished and genuine truth in view of the fact that those false flag attacks have been systematically utilized by the real perpetrators to wage war against nations near and far.

That’s all about to change in 2014.

With the dissemination of the most recent round of 9/11 Truth, the guilty state actors have been painted into the corner … WITH NO WAY OUT.  When a nation such as Russia, which possesses an intelligence apparatus second only to the USA, provides high integrity information and data pertaining to the 9/11 false flag operation, and Edward Snowden is backing it up with NSA-generated hard evidence, how can the real perps possibly squeeze out of that corner?   *** Continue

911-twin Towers Crime Scene

Hagel Warned Of Rogue ‘New World Order’, Now He’s Fired

November 24, 2014
 Remember the murder of Truman’s Secretary of Defense Admiral James Forrestal in 1949:

 

Source: Steve Watson

Hagel Warned Of Rogue New World Order, Now Hes Fired 051114hagel

Chuck Hagel has been fired by Obama from his position as Defense Secretary. Hagel, a former GOP Senator, was appointed by Obama in early 2013 and therefore was scheduled to serve for the entirety of Obama’s second term.

Prior to his appointment, Hagel is said to have visited the White House in 2009, and personally warned Obama that he should look out for rogue elements within the Pentagon that were leading a ‘new world order’.

This was not reported on some internet conspiracy forum, it was a leading report published shortly before Hagel’s appointment, by Bob Woodward, an award winning journalist and associate editor with The Washington Post.

According to an account that Hagel gave, he told Obama: “We are at a time where there is a new world order.”

“We don’t control it. You must question everything, every assumption, everything they” — the military and diplomats — “tell you. Any assumption 10 years old is out of date. You need to question our role. You need to question the military. You need to question what are we using the military for.” Hagel is said to have told the President.

The Post report also stated that Hagel warned Obama about becoming “bogged down” in the ongoing war in Afghanistan, saying it would define Obama’s first term. Hagel reportedly later privately questioned the wisdom of sending additional troops to join the conflict.

“If Hagel is confirmed, as appears likely, he and the president will have a large task in navigating this new world order.” The Post report concluded at the time.

It remains to be discovered as to whether or not Hagel attempted to oust the rogue elements within the military industrial complex. The last straw for Hagel, though, may have been comments he made last week during a sit down interview with Charlie Rose at the Pentagon.

During the exchange, Hagel expressed a belief that US military action against ISIS was “indirectly benefiting” the Syrian President Bashar Assad, comments that were sure to have been unwelcome by the powers that be, given its push for airstrikes against the Syrian government last year.

Hagel also said that “The world is damn dangerous,” adding that the US military is unprepared.

Hagel criticized defense budget cuts and stated outright “We won’t have the readiness. We won’t have the capability. We won’t have long-term investments that this institution requires to stay ahead of everybody else, as we have since World War II, with the technological edge, with the ability to continue to recruit and retain the best people.”

Hagel was also critical of US foreign policy, noting that “policies are predicated on historical knowledge and cultural awareness and all that goes into that. Have we made mistakes over a series of many years? Yeah, I think we have. I think anybody would agree to that.”

In short, Hagel is no longer in a job because he alluded to rogue globalist elements within the US military, criticized the long imperial march to war, and admitted to detrimental blowback in the ‘war on terror’. Yeah, that’ll do it.

President Eisenhower warned America first in his 1961 farewell speech:

NEW DOMESTIC TERROR THREAT

If Tyranny and Oppression come to this land, it will be in the guise of fighting a foreign enemy. “

James Madison 

“When fascism comes to America, it will be wrapped in the flag and carrying a cross.”

-Sinclair Lewis

JEBBUSHbloodMoonRisingProof

Wah, Wah Wah, when is it going to be my turn to be POTUS, Mommy ? Daddy and George had their turn, me, me,me, my,my,my, gimmee,gimmee,gimmee.

The greatest  new terror threat to America is who buys the POTUS award in 2016. The Bush Dynasty of war profiteering, eugenics and fascist subversion of freedom and progressive reform is infamous. The same cabal of global military-industrial megalomaniacs that killed the Kennedys, executed the 9-11 false flag attack, the Enron scam, the 2008 looting o  average citizens wealth, the bail out that enriched the already obscenely rich multi-nation banks and royal corporate criminals of the secret society that constitutes the defacto shadow government, and who swept in the authoritarian surveillance police state which has replaced our constitutional rights and altered democracy unrecognizably, are still in power. These .01 % plutocrats are the mafia families that own the FED, the ECB,  Goldman Sachs, JP Morgan Chase, Bank of America, Citi-Corp, Mc Donnell Douglas,Raytheon, Boeing,Exxon-Mobil, Dutch Royal Shell, Royal BP, Chevron,  Halliburton, Massey-Ferguson, Exelon, CSX,Monsanto,  Dow, Dupont, Cargill, Koch Industries, and if I have forgotten a few, WTF does it matter, no one reads this except maybe the NSA.

So to you filthy + treasonous + Koch-suckings NSA, DHS,FBI, CIA, blah, blah, blah federal employees who are the recipients of corporate welfare at the expense of the minimum wage tax paying  slaves, be advised that America wants you do as America’s real heros: Edward Snowden, Glenn Greenwald, And Laura Poitras among others did, Betray the Puppet Masters and if necessary overthrow the fascist regime by any means . If you are really patriotic, remember Thomas Paine’s COMMON SENSE and if you are truly concerned about America’s future and democratic freedoms, depose the corporate aristocracy, end the surveillance police state, nationalize the energy sector, break up, regulate and prosecute Wall Street ,the too big to fail banks,  the mass murdering 9-11 conspirators like the Bush- Cheney-Silverstein-Bloomberg-Netanyahu crime Families, and repeal the NDAA, Citizens United, the Patriot act, and disband the FISA Courts, close Quantanamo, end torture and indefinite detention, and restore The Constitution and Bill of RIghts. Only then will you earn the respect of the world and the title of ‘ Patriot ‘ or  ‘Hero, or ‘ Defender of Freedom ”. As it stands, you are all the lowest ass sniffing rats on the face of the earth.

Jeb Bush is a sniveling pussy faced thumb sucker. Do you worship people like this ? Do not be surprised if Jebby runs and wins. God knows, Hillary is hardly any better, which underscores the dilemma that America has only one party, and the election process is just a sham to fool the people into thinking they have any choice or voice.

READ  ALL ABOUT THE BUSH DYNASTY:

https://jtremaine.wordpress.com/2014/10/01/bush-dynasty-of-death-revisited/

READ ALL ABOUT 9-11 AND THE CONTROLLED DEMOLITION:

https://jtremaine.wordpress.com/2014/09/19/anatomy-of-a-great-deception-9-11-controlled-demolition/

READ ALL ABOUT SNOWDEN AND GREEWALD-THE MEN WHO LEAKED THE SECRETS:

http://www.rollingstone.com/politics/news/snowden-and-greenwald-the-men-who-leaked-the-secrets-20131204?page=6

What you don’t know, you don’t know that you don’t know it !

INSIDE THE KOCH BROTHERS TOXIC EMPIRE

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Together, Charles and David Koch control one of the world’s largest fortunes, which they are using to buy up our political system. But what they don’t want you to know is how they made all that money

By Tim Dickinson | September 24, 2014 ROLLING STONE MAGAZINE

The enormity of the Koch fortune is no mystery. Brothers Charles and David are each worth more than $40 billion. The electoral influence of the Koch brothers is similarly well-chronicled. The Kochs are our homegrown oligarchs; they’ve cornered the market on Republican politics and are nakedly attempting to buy Congress and the White House. Their political network helped finance the Tea Party and powers today’s GOP. Koch-affiliated organizations raised some $400 million during the 2012 election, and aim to spend another $290 million to elect Republicans in this year’s midterms. So far in this cycle, Koch-backed entities have bought 44,000 political ads to boost Republican efforts to take back the Senate.

Related

Koch Industries Responds to RS – And We Answer Back

What is less clear is where all that money comes from. Koch Industries is headquartered in a squat, smoked-glass building that rises above the prairie on the outskirts of Wichita, Kansas. The building, like the brothers’ fiercely private firm, is literally and figuratively a black box. Koch touts only one top-line financial figure: $115 billion in annual revenue, as estimated by Forbes. By that metric, it is larger than IBM, Honda or Hewlett-Packard and is America’s second-largest private company after agribusiness colossus Cargill. The company’s stock response to inquiries from reporters: “We are privately held and don’t disclose this information.”

But Koch Industries is not entirely opaque. The company’s troubled legal history – including a trail of congressional investigations, Department of Justice consent decrees, civil lawsuits and felony convictions – augmented by internal company documents, leaked State Department cables, Freedom of Information disclosures and company whistle­-blowers, combine to cast an unwelcome spotlight on the toxic empire whose profits finance the modern GOP.

Under the nearly five-decade reign of CEO Charles Koch, the company has paid out record civil and criminal environmental penalties. And in 1999, a jury handed down to Koch’s pipeline company what was then the largest wrongful-death judgment of its type in U.S. history, resulting from the explosion of a defective pipeline that incinerated a pair of Texas teenagers.

The volume of Koch Industries’ toxic output is staggering. According to the University of Massachusetts Amherst’s Political Economy Research Institute, only three companies rank among the top 30 polluters of America’s air, water and climate: ExxonMobil, American Electric Power and Koch Industries. Thanks in part to its 2005 purchase of paper-mill giant Georgia-Pacific, Koch Industries dumps more pollutants into the nation’s waterways than General Electric and International Paper combined. The company ranks 13th in the nation for toxic air pollution. Koch’s climate pollution, meanwhile, outpaces oil giants including Valero, Chevron and Shell. Across its businesses, Koch generates 24 million metric tons of greenhouse gases a year.

Related

Three New Ways the Koch Brothers Are Screwing America

For Koch, this license to pollute amounts to a perverse, hidden subsidy. The cost is borne by communities in cities like Port Arthur, Texas, where a Koch-owned facility produces as much as 2 billion pounds of petrochemicals every year. In March, Koch signed a consent decree with the Department of Justice requiring it to spend more than $40 million to bring this plant into compliance with the Clean Air Act.

The toxic history of Koch Industries is not limited to physical pollution. It also extends to the company’s business practices, which have been the target of numerous federal investigations, resulting in several indictments and convictions, as well as a whole host of fines and penalties.

And in one of the great ironies of the Obama years, the president’s financial-regulatory reform seems to benefit Koch Industries. The company is expanding its high-flying trading empire precisely as Wall Street banks – facing tough new restrictions, which Koch has largely escaped – are backing away from commodities speculation.

It is often said that the Koch brothers are in the oil business. That’s true as far as it goes – but Koch Industries is not a major oil producer. Instead, the company has woven itself into every nook of the vast industrial web that transforms raw fossil fuels into usable goods. Koch-owned businesses trade, transport, refine and process fossil fuels, moving them across the world and up the value chain until they become things we forgot began with hydrocarbons: fertilizers, Lycra, the innards of our smartphones.

The company controls at least four oil refineries, six ethanol plants, a natural-gas-fired power plant and 4,000 miles of pipeline. Until recently, Koch refined roughly five percent of the oil burned in America (that percentage is down after it shuttered its 85,000-barrel-per-day refinery in North Pole, Alaska, owing, in part, to the discovery that a toxic solvent had leaked from the facility, fouling the town’s groundwater). From the fossil fuels it refines, Koch also produces billions of pounds of petrochemicals, which, in turn, become the feedstock for other Koch businesses. In a journey across Koch Industries, what enters as a barrel of West Texas Intermediate can exit as a Stainmaster carpet.

Koch’s hunger for growth is insatiable: Since 1960, the company brags, the value of Koch Industries has grown 4,200-fold, outpacing the Standard & Poor’s index by nearly 30 times. On average, Koch projects to double its revenue every six years. Koch is now a key player in the fracking boom that’s vaulting the United States past Saudi Arabia as the world’s top oil producer, even as it’s endangering America’s groundwater. In 2012, a Koch subsidiary opened a pipeline capable of carrying 250,000 barrels a day of fracked crude from South Texas to Corpus Christi, where the company owns a refinery complex, and it has announced plans to further expand its Texas pipeline operations. In a recent acquisition, Koch bought Frac-Chem, a top provider of hydraulic fracturing chemicals to drillers. Thanks to the Bush administration’s anti-regulatory­ agenda – which Koch Industries helped craft – Frac-Chem’s chemical cocktails, injected deep under the nation’s aquifers, are almost entirely exempt from the Safe Drinking Water Act.

A 1996 explosion of a Koch-owned pipeline in Texas killed two teens. (Photo: National Transportation Safety Board)

Koch is also long on the richest – but also the dirtiest and most carbon-polluting – oil deposits in North America: the tar sands of Alberta. The company’s Pine Bend refinery, near St. Paul, Minnesota, processes nearly a quarter of the Canadian bitumen exported to the United States – which, in turn, has created for Koch Industries a lucrative sideline in petcoke exports. Denser, dirtier and cheaper than coal, petcoke is the dregs of tar-sands refining. U.S. coal plants are largely forbidden from burning petcoke, but it can be profitably shipped to countries with lax pollution laws like Mexico and China. One of the firm’s subsidiaries, Koch Carbon, is expanding its Chicago terminal operations to receive up to 11 million tons of petcoke for global export. In June, the EPA noted the facility had violated the Clean Air Act with petcoke particulates that endanger the health of South Side residents. “We dispute that the two elevated readings” behind the EPA notice of violation “are violations of anything,” Koch’s top lawyer, Mark Holden, told Rolling Stone, insisting that Koch Carbon is a good neighbor.

Over the past dozen years, the company has quietly acquired leases for 1.1 million acres of Alberta oil fields, an area larger than Rhode Island. By some estimates, Koch’s direct holdings nearly double ExxonMobil’s and nearly triple Shell’s. In May, Koch Oil Sands Operating LLC of Calgary, Alberta, sought permits to embark on a multi-billion­dollar tar-sands-extraction operation. This one site is projected to produce 22 million barrels a year – more than a full day’s supply of U.S. oil.

Charles Koch, the 78-year-old CEO and chairman of the board of Koch Industries, is inarguably a business savant. He presents himself as a man of moral clarity and high integrity. “The role of business is to produce products and services in a way that makes people’s lives better,” he said recently. “It cannot do so if it is injuring people and harming the environment in the process.”

The Koch family’s lucrative blend of pollution, speculation, law-bending and self-righteousness stretches back to the early 20th century, when Charles’ father first entered the oil business. Fred C. Koch was born in 1900 in Quanah, Texas – a sunbaked patch of prairie across the Red River from Oklahoma. Fred was the second son of Hotze “Harry” Koch, a Dutch immigrant who – as recalled in Koch literature – ran “a modest newspaper business” amid the dusty poverty of Quanah. In the family legend, Fred Koch emerged from the nothing of the Texas range to found an empire. But like many stories the company likes to tell about itself, this piece of Koch­lore takes liberties with the truth. Fred was not a simple country boy, and his father was not just a small-town publisher. Harry Koch was also a local railroad baron who used his newspaper to promote the Quanah, Acme & Pacific railways. A director and founding shareholder of the company, Harry sought to build a rail line across Texas to El Paso. He hoped to turn Quanah into “the most important railroad center in northwest Texas and a metropolitan city of first rank.” He may not have fulfilled those ambitions, but Harry did build up what one friend called “a handsome pile of dinero.”

Harry was not just the financial springboard for the Koch dynasty, he was also its wellspring of far-right politics. Harry editorialized against fiat money, demanded hangings for “habitual criminals” and blasted Social Security as inviting sloth. At the depths of the Depression, he demanded that elected officials in Washington should stop trying to fix the economy: “Business,” he wrote, “has always found a way to overcome various recessions.”

In the company’s telling, young Fred was an innovator whose inventions helped revolutionize the oil industry. But there is much more to this story. In its early days, refining oil was a dirty and wasteful practice. But around 1920, Universal Oil Products introduced a clean and hugely profitable way to “crack” heavy crude, breaking it down under heat and heavy pressure to boost gasoline yields. In 1925, Fred, who earned a degree in chemical engineering from MIT, partnered with a former Universal engineer named Lewis Winkler and designed a near carbon copy of the Universal cracking apparatus – making only tiny, unpatentable tweaks. Relying on family connections, Fred soon landed his first client – an Oklahoma refinery owned by his maternal uncle L.B. Simmons. In a flash, Winkler-Koch Engineering Co. had contracts to install its knockoff cracking equipment all over the heartland, undercutting Universal by charging a one-time fee rather than ongoing royalties.

It was a boom business. That is, until Universal sued in 1929, accusing Winkler­Koch of stealing its intellectual property. With his domestic business tied up in court, Fred started looking for partners abroad and was soon doing business in the Soviet Union, where leader Joseph Stalin had just launched his first Five Year Plan. Stalin sought to fund his country’s industrialization by selling oil into the lucrative European export market. But the Soviet Union’s reserves were notoriously hard to refine. The USSR needed cracking technology, and the Oil Directorate of the Supreme Council of the National Economy took a shining to Winkler-Koch – primarily because Koch’s oil-industry competitors were reluctant to do business with totalitarian Communists.

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Outside its London offices, protesters gather. (Photo: P.Wolmuth/REPORT DIGITAL-REA/Re)

Between 1929 and 1931, Winkler-Koch built 15 cracking units for the Soviets. Although Stalin’s evil was no secret, it wasn’t until Fred visited the Soviet Union, that these dealings seemed to affect his conscience. “I went to the USSR in 1930 and found it a land of hunger, misery and terror,” he would later write. Even so, he agreed to give the Soviets the engineering know-how they would need to keep building more.

Back home, Fred was busy building a life of baronial splendor. He met his wife, Mary, the Wellesley-educated daughter of a Kansas City surgeon, on a polo field and soon bought 160 acres across from the Wichita Country Club, where they built a Tudor­style mansion. As chronicled in Sons of Wichita, Daniel Schulman’s investigation of the Koch dynasty, the compound was quickly bursting with princes: Frederick arrived in 1933, followed by Charles in 1935 and twins David and Bill in 1940. Fred Koch lorded over his domain. “My mother was afraid of my father,” said Bill, as were the four boys, especially first-born Frederick, an artistic kid with a talent for the theater. “Father wanted to make all his boys into men, and Freddie couldn’t relate to that regime,” Charles recalled. Frederick got shipped East to boarding school and was all but disappeared from Wichita.

With Frederick gone, Charles forged a deep alliance with David, the more athletic and assertive of the young twins. “I was closer with David because he was better at everything,” Charles has said.

Fred Koch’s legal battle with Universal would drag on for nearly a quarter-century. In 1934, a lower court ruled that Winkler-Koch had infringed on Universal’s technology. But that judgment would be vacated, after it came out in 1943 that Universal had bought off one of the judges­ handling the appeal. A year later, the Supreme Court decided that Fred’s cracker, by virtue of small technical differences, did not violate the Universal patent. Fred countersued on antitrust grounds, arguing that Universal had wielded patents anti-competitively. He’d win a $1.5 million settlement in 1952.

Around that time, Fred had built a domestic oil empire under a new company eventually called Rock Island Oil & Refining, transporting crude from wellheads to refineries by truck or by pipe. In those later years, Fred also became a major benefactor and board member of the John Birch Society, the rabidly anti-communist organization founded in 1958 by candy magnate and virulent racist Robert Welch. Bircher publications warned that the Red endgame was the creation of the “Negro Soviet­ Republic” in the Deep South. In his own writing, Fred described integration as a Red plot to “enslave both the white and black man.”

Like his father, Charles Koch attended MIT. After he graduated in 1959 with two master’s degrees in engineering, his father issued an ultimatum: Come back to Wichita or I’ll sell the business. “Papa laid it on the line,” recalled David. So Charles returned home, immersing himself in his father’s world – not simply joining the John Birch Society, but also opening a Bircher bookstore. The Birchers had high hopes for young Charles. As Koch family friend Robert Love wrote in a letter to Welch: “Charles Koch can, if he desires, finance a large operation, however, he must continually be brought along.”

But Charles was already falling under the sway of a charismatic radio personality named Robert LeFevre, founder of the Freedom School, a whites-only­ libertarian boot camp in the foothills above Colorado Springs, Colorado. LeFevre preached a form of anarchic capitalism in which the individual should be freed from almost all government power. Charles soon had to make a choice. While the Birchers supported the Vietnam War, his new guru was a pacifist who equated militarism with out-of-control state power. LeFevre’s stark influence on Koch’s thinking is crystallized in a manifesto Charles wrote for the Libertarian Review in the 1970s, recently unearthed by Schulman, titled “The Business Community: Resisting Regulation.” Charles lays out principles that gird today’s Tea Party movement. Referring to regulation as “totalitarian,” the 41-year-old Charles claimed business leaders had been “hoodwinked” by the notion that regulation is “in the public interest.” He advocated the “barest possible obedience” to regulation and implored, “Do not cooperate voluntarily, instead, resist whenever and to whatever extent you legally can in the name of justice.”

After his father died in 1967, Charles, now in command of the family business, renamed it Koch Industries. It had grown into one of the 10 largest privately owned firms in the country, buying and selling some 80 million barrels of oil a year and operating 3,000 miles of pipeline. A black-diamond skier and white-water kayaker, Charles ran the business with an adrenaline junkie’s aggressiveness. The company would build pipelines to promising oil fields without a contract from the producers and park tanker trucks beside wildcatters’ wells, waiting for the first drops of crude to flow. “Our willingness to move quickly, absorb more risk,” Charles would write, “enabled us to become the leading crude-oil­gathering company.”

Charles also reconnected with one of his father’s earliest insights: There’s big money in dirty oil. In the late 1950s, Fred Koch had bought a minority stake in a Minnesota refinery that processed heavy Canadian crude. “We could run the lousiest crude in the world,” said his business partner J. Howard Marshall II – the future Mr. Anna Nicole Smith. Sensing an opportunity for huge profits, Charles struck a deal to convert Marshall’s ownership stake in the refinery into stock in Koch Industries. Suddenly the majority owner, the company soon bought the rest of the refinery outright.

Almost from the beginning, Koch Industries’ risk-taking crossed over into recklessness. The OPEC oil embargo hit the company hard. Koch had made a deal giving the company the right to buy a large share of Qatar’s export crude. At the time, Koch owned five supertankers and had chartered many others. When the embargo hit, Koch had upward of half a billion dollars in exposure to tankers and couldn’t deliver OPEC oil to the U.S. market, creating what Charles has called “large losses.” Soon, Koch Industries was caught overcharging American customers. The Ford administration in the summer of 1974 compelled Koch to pay out more than $20 million in rebates and future price reductions.

Koch Industries’ manipulations were about to get more audacious. In the late 1970s, the federal government parceled out exploration tracts, using a lottery in which anyone could score a 10-year lease at just $1 an acre – a game of chance that gave wildcat prospectors the same shot as the biggest players. Koch didn’t like these odds, so it enlisted scores of frontmen to bid on its behalf. In the event they won the lottery, they would turn over their leases to the company. In 1980, Koch Industries pleaded guilty to five felonies in federal court, including conspiracy to commit fraud.

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The Koch family, mid-1950s. (Photo: Wichita State University Libraries)

With Republicans and Democrats united in regulating the oil business, Charles had begun throwing his wealth behind the upstart Libertarian Party, seeking to transform it into a viable third party. Over the years, he would spend millions propping up a league of affiliated think tanks and front groups – a network of Libertarians that became known as the “Kochtopus.”

Charles even convinced David to stand as the Libertarian Party’s vice-presidential candidate in 1980 – a clever maneuver that allowed David to lavish unlimited money on his own ticket. The Koch-funded 1980 platform was nakedly in the brothers’ self-interest – slashing federal regulatory agencies, offering a 50 percent tax break to top earners, ending the “cruel and unfair” estate tax and abolishing a $16 billion “windfall profits” tax on the oil industry. The words of Libertarian presidential candidate Ed Clark’s convention speech in Los Angeles ring across the decades: “We’re sick of taxes,” he declared. “We’re ready to have a very big tea party.” In a very real sense, the modern Republican Party was on the ballot that year – and it was running against Ronald Reagan.

Charles’ management style and infatuation with far-right politics were endangering his grip on the company. Bill believed his brothers’ political spending was bad for business. “Pretty soon, we would get the reputation that the company and the Kochs were crazy,” he said.

In late 1980, with Frederick’s backing, Bill launched an unsuccessful battle for control of Koch Industries, aiming to take the company public. Three years later, Charles and David bought out their brothers for $1.1 billion. But the speed with which Koch Industries paid off the buyout debt left Bill convinced, but never quite able to prove, he’d been defrauded. He would spend the next 18 years suing his brothers, calling them “the biggest crooks in the oil industry.”

Bill also shared these concerns with the federal government. Thanks in part to his efforts, in 1989 a Senate committee investigating Koch business with Native Americans would describe Koch Oil tactics as “grand larceny.” In the late 1980s, Koch was the largest purchaser of oil from American tribes. Senate investigators suspected the company was making off with more crude from tribal oil fields than it measured and paid for. They set up a sting, sending an FBI agent to coordinate stakeouts of eight remote leases. Six of them were Koch operations, and the agents reported “oil theft” at all of them.

One of Koch’s gaugers would refer to this as “volume enhancement.” But in sworn testimony before a Texas jury, Phillip Dubose, a former Koch pipeline manager, offered a more succinct definition: “stealing.” The Senate committee concluded that over the course of three years Koch “pilfered” $31 million in Native oil; in 1988, the value of that stolen oil accounted for nearly a quarter of the company’s crude-oil profits. “I don’t know how the company could have figures like that,” the FBI agent testified, “and not have top management know that theft was going on.” In his own testimony, Charles offered that taking oil readings “is a very uncertain art” and that his employees “aren’t rocket scientists.” Koch’s top lawyer would later paint the company as a victim of Senate “McCarthyism.”

By this time, the Kochs had soured on the Libertarian Party, concluding that control of a small party would never give them the muscle they sought in the nation’s capital. Now they would spend millions in efforts to influence – and ultimately take over – the GOP. The work began close to home; the Kochs had become dedicated patrons of Sen. Bob Dole of Kansas, who ran interference for Koch Industries in Washington. On the Senate floor in March 1990, Dole gloatingly cautioned against a “rush to judgment” against Koch, citing “very real concerns about some of the evidence on which the special committee was basing its findings.” A grand jury investigated the claims but disbanded in 1992, without issuing indictments.

Arizona Sen. Dennis DeConcini was “surprised and disappointed” at the decision to drop the case. “Our investigation was some of the finest work the Senate has ever done,” he said. “There was an overwhelming case against Koch.” But Koch did not avoid all punishment. Under the False Claims Act, which allows private citizens to file lawsuits on behalf of the government, Bill sued the company, accusing it of defrauding the feds of royalty income on its “volume­enhanced” purchases of Native oil. A jury concluded Koch had submitted more than 24,000 false claims, exposing Koch to some $214 million in penalties. Koch later settled, paying $25 million.

Self­interest continued to define Koch Industries’ adventures in public policy. In the early 1990s, in a high-profile initiative of the first-term Clinton White House, the administration was pushing for a levy on the heat content of fuels. Known as the BTU tax, it was the earliest attempt by the federal government to recoup damages from climate polluters. But Koch Industries could not stand losing its most valuable subsidy: the public policy that allowed it to treat the atmosphere as an open sewer. Richard Fink, head of Koch Company’s Public Sector and the longtime mastermind of the Koch brothers’ political empire, confessed to The Wichita Eagle in 1994 that Koch could not compete if it actually had to pay for the damage it did to the environment: “Our belief is that the tax, over time, may have destroyed our business.”

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To fight this threat, the Kochs funded a “grassroots” uprising – one that foreshadowed the emergence, decades later, of the Tea Party. The effort was run through Citizens for a Sound Economy, to which the brothers had spent a decade giving nearly $8 million to create what David Koch called “a sales force” to communicate the brothers’ political agenda through town hall meetings and anti-tax rallies designed to look like spontaneous demonstrations. In 1994, David Koch bragged that CSE’s campaign “played a key role in defeating the administration’s plans for a huge and cumbersome BTU tax.”

Despite the company’s increasingly sophisticated political and public-relations operations, Charles’ philosophy of regulatory resistance was about to bite Koch Industries – in the form of record civil and criminal financial penalties imposed by the Environmental Protection Agency.

Koch entered the 1990s on a pipeline-buying spree. By 1994, its network measured 37,000 miles. According to sworn testimony from former Koch employees, the company operated its pipelines with almost complete disregard for maintenance. As Koch employees understood it, this was in keeping with their CEO’s trademarked business philosophy, Market­Based Management.

For Charles, MBM – first communicated to employees in 1991 – was an attempt to distill the business practices that had grown Koch into one of the largest oil businesses in the world. To incentivize workers, Koch gives employees bonuses that correlate to the value they create for the company. “Salary is viewed only as an advance on compensation for value,” Koch wrote, “and compensation has an unlimited upside.”

To prevent the stagnation that can often bog down big enterprises, Koch was also determined to incentivize risk-taking. Under MBM, Koch Industries books opportunity costs – “profits foregone from a missed opportunity” – as though they were actual losses on the balance sheet. Koch employees who play it safe, in other words, can’t strike it rich.

On paper, MBM sounds innovative and exciting. But in Koch’s hyperaggressive corporate culture, it contributed to a series of environmental disasters. Applying MBM to pipeline maintenance, Koch employees calculated that the opportunity cost of shutting down equipment to ensure its safety was greater than the profit potential of pushing aging pipe to its limits.

The fact that preventive pipeline maintenance is required by law didn’t always seem to register. Dubose, a 26-year Koch veteran who oversaw pipeline areas in Louisiana, would testify about the company’s lax attitude toward maintenance. “It was a question of money. It would take away from our profit margin.” The testimony of another pipeline manager would echo that of Dubose: “Basically, the philosophy was ‘If it ain’t broke, don’t work on it.'”

When small spills occurred, Dubose testified, the company would cover them up. He recalled incidents in which the company would use the churn of a tugboat’s engine to break up waterborne spills and “just kind of wash that thing on down, down the river.” On land, Dubose said, “They might pump it [the leaked oil] off into a drum, then take a shovel and just turn the earth over.” When larger spills were reported to authorities, the volume of the discharges was habitually low-balled, according to Dubose.

Managers pressured employees to falsify pipeline-maintenance records filed with federal authorities; in a sworn affidavit, pipeline worker Bobby Conner recalled arguments with his manager over Conner’s refusal to file false reports: “He would always respond with anger,” Conner said, “and tell me that I did not know how to be a Koch employee.” Conner was fired and later settled a wrongful-termination suit with Koch Gateway Pipeline. Dubose testified that Charles was not in the dark about the company’s operations. “He was in complete control,” Dubose said. “He was the one that was line-driving this Market-Based Management at meetings.”

Before the worst spill from this time, Koch employees had raised concerns about the integrity of a 1940s-era pipeline in South Texas. But the company not only kept the line in service, it increased the pressure to move more volume. When a valve snapped shut in 1994, the brittle pipeline exploded. More than 90,000 gallons of crude spewed into Gum Hollow Creek, fouling surrounding marshlands and both Nueces and Corpus Christi bays with a 12-mile oil slick.

By 1995, the EPA had seen enough. It sued Koch for gross violations of the Clean Water Act. From 1988 through 1996, the company’s pipelines spilled 11.6 million gallons of crude and petroleum products. Internal Koch records showed that its pipelines were in such poor condition that it would require $98 million in repairs to bring them up to industry standard.

Ultimately, state and federal agencies forced Koch to pay a $30 million civil penalty – then the largest in the history of U.S. environmental law – for 312 spills across six states. Carol Browner, the former EPA administrator, said of Koch, “They simply did not believe the law applied to them.” This was not just partisan rancor. Texas Attorney General John Cornyn, the future Republican senator, had joined the EPA in bringing suit against Koch. “This settlement and penalty warn polluters that they cannot treat oil spills simply as the cost of doing business,” Cornyn said. (The Kochs seem to have no hard feelings toward their one-time tormentor; a lobbyist for Koch was the number-two bundler for Cornyn’s primary campaign this year.)

Koch wasn’t just cutting corners on its pipelines. It was also violating federal environmental law in other corners of the empire. Through much of the 1990s at its Pine Bend refinery in Minnesota, Koch spilled up to 600,000 gallons of jet fuel into wetlands near the Mississippi River. Indeed, the company was treating the Mississippi as a sewer, illegally dumping ammonia-laced wastewater into the river – even increasing its discharges on weekends when it knew it wasn’t being monitored. Koch Petroleum Group eventually pleaded guilty to “negligent discharge of a harmful quantity of oil” and “negligent violation of the Clean Water Act,” was ordered to pay a $6 million fine and $2 million in remediation costs, and received three years’ probation. This facility had already been declared a Superfund site in 1984.

In 2000, Koch was hit with a 97-count indictment over claims it violated the Clean Air Act by venting massive quantities of benzene at a refinery in Corpus Christi – and then attempted to cover it up. According to the indictment, Koch filed documents with Texas regulators indicating releases of just 0.61 metric tons of benzene for 1995 – one-tenth of what was allowed under the law. But the government alleged that Koch had been informed its true emissions that year measured 91 metric tons, or 15 times the legal limit.

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Charles Koch (Photo: Larry W. Smith / Polaris)

By the time the case came to trial, however, George W. Bush was in office and the indictment had been significantly pared down – Koch faced charges on only seven counts. The Justice Department settled in what many perceived to be a sweetheart deal, and Koch pleaded guilty to a single felony count for covering up the fact that it had disconnected a key pollution-control device and did not measure the resulting benzene emissions – receiving five years’ probation. Despite skirting stiffer criminal prosecution, Koch was handed $20 million in fines and reparations – another historic judgment.

On the day before Danielle Smalley was to leave for college, she and her friend Jason Stone were hanging out in her family’s mobile home. Seventeen years old, with long chestnut hair, Danielle began to feel nauseated. “Dad,” she said, “we smell gas.” It was 3:45 in the afternoon on August 24th, 1996, near Lively, Texas, some 50 miles southeast of Dallas. The Smalleys were too poor to own a telephone. So the teens jumped into her dad’s 1964 Chevy pickup to alert the authorities. As they drove away, the truck stalled where the driveway crossed a dry creek bed. Danielle cranked the ignition, and a fireball engulfed the truck. “You see two children burned to death in front of you – you never forget that,” Danielle’s father, Danny, would later tell reporters.

Unknown to the Smalleys, a decrepit Koch pipeline carrying liquid butane – literally, lighter fluid – ran through their subdivision. It had ruptured, filling the creek bed with vapor, and the spark from the pickup’s ignition had set off a bomb. Federal investigators documented both “severe corrosion” and “mechanical damage” in the pipeline. A National Transportation Safety Board report would cite the “failure of Koch Pipeline Company LP to adequately protect its pipeline from corrosion.”

Installed in the early Eighties, the pipeline had been out of commission for three years. When Koch decided to start it up again in 1995, a water-pressure test had blown the pipe open. An inspection of just a few dozen miles of pipe near the Smal­ley home found 538 corrosion defects. The industry’s term of art for a pipeline in this condition is Swiss cheese, according to the testimony of an expert witness – “essentially the pipeline is gone.”

Koch repaired only 80 of the defects – enough to allow the pipeline to withstand another pressure check – and began running explosive fluid down the line at high pressure in January 1996. A month later, employees discovered that a key anti­corrosion system had malfunctioned, but it was never fixed. Charles Koch had made it clear to managers that they were expected to slash costs and boost profits. In a sternly worded memo that April, Charles had ordered his top managers to cut expenditures by 10 percent “through the elimination of waste (I’m sure there is much more waste than that)” in order to increase pre-tax earnings by $550 million a year.

The Smalley trial underscored something Bill Koch had said about the way his brothers ran the company: “Koch Industries has a philosophy that profits are above everything else.” A former Koch manager, Kenoth Whitstine, testified to incidents in which Koch Industries placed profits over public safety. As one supervisor had told him, regulatory fines “usually didn’t amount to much” and, besides, the company had “a stable full of lawyers in Wichita that handled those situations.” When Whitstine told another manager he was concerned that unsafe pipelines could cause a deadly accident, this manager said that it was more profitable for the company to risk litigation than to repair faulty equipment. The company could “pay off a lawsuit from an incident and still be money ahead,” he said, describing the principles of MBM to a T.

At trial, Danny Smalley asked for a judgment large enough to make the billionaires feel pain: “Let Koch take their child out there and put their children on the pipeline, open it up and let one of them die,” he told the jury. “And then tell me what that’s worth.” The jury was emphatic, awarding Smalley $296 million – then the largest wrongful-death judgment in American legal history. He later settled with Koch for an undisclosed sum and now runs a pipeline-safety foundation in his daughter’s name. He declined to comment for this story. “It upsets him too much,” says an associate.

The official Koch line is that scandals that caused the company millions in fines, judgments and penalties prompted a change in Charles’ attitude of regulatory resistance. In his 2007 book, The Science of Success, he begrudgingly acknowledges his company’s recklessness. “While business was becoming increasingly regulated,” he reflects, “we kept thinking and acting as if we lived in a pure market economy. The reality was far different.”

Charles has since committed Koch Industries to obeying federal regulations. “Even when faced with laws we think are counterproductive,” he writes, “we must first comply.” Underscoring just how out of bounds Koch had ventured in its corporate culture, Charles admits that “it required a monumental undertaking to integrate compliance into every aspect of the company.” In 2000, Koch Petroleum Group entered into an agreement with the EPA and the Justice Department to spend $80 million at three refineries to bring them into compliance with the Clean Air Act. After hitting Koch with a $4.5 million penalty, the EPA granted the company a “clean slate” for certain past violations.

Then George W. Bush entered the White House in 2001, his campaign fattened with Koch money. Charles Koch may decry cronyism as “nothing more than welfare for the rich and powerful,” but he put his company to work, hand in glove, with the Bush White House. Correspondence, contacts and visits among Koch Industries representatives and the Bush White House generated nearly 20,000 pages of records, according to a Rolling Stone FOIA request of the George W. Bush Presidential Library. In 2007, the administration installed a fiercely anti-regulatory academic, Susan Dudley, who hailed from the Koch-funded Mercatus Center at George Mason University, as its top regulatory official.

Today, Koch points to awards it has won for safety and environmental excellence. “Koch companies have a strong record of compliance,” Holden, Koch’s top lawyer, tells Rolling Stone. “In the distant past, when we failed to meet these standards, we took steps to ensure that we were building a culture of 10,000 percent compliance, with 100 percent of our employees complying 100 percent.” To reduce its liability, Koch has also unwound its pipeline business, from 37,000 miles in the late 1990s to about 4,000 miles. Of the much smaller operation, he adds, “Koch’s pipeline practice and operations today are the best in the industry.”

But even as compliance began to improve among its industrial operations, the company aggressively expanded its trading activities into the Wild West frontier of risky financial instruments. In 2000, the Commodity Futures Modernization Act had exempted many of these products from regulation, and Koch Industries was among the key players shaping that law. Koch joined up with Enron, BP, Mobil and J. Aron – a division of Goldman Sachs then run by Lloyd Blankfein – in a collaboration called the Energy Group. This corporate alliance fought to prohibit the federal government from policing oil and gas derivatives. “The importance of derivatives for the Energy Group companies . . . cannot be overestimated,” the group’s lawyer wrote to the Commodity Futures Trading Commission in 1998. “The success of this business can be completely undermined by . . . a costly regulatory regime that has no place in the energy industry.”

Koch had long specialized in “over-the-counter” or OTC trades – private, unregulated contracts not disclosed on any centralized exchange. In its own letter to the CFTC, Koch identified itself as “a major participant in the OTC derivatives market,” adding that the company not only offered “risk-management tools for its customers” but also traded “for its own account.” Making the case for what would be known as the Enron Loophole, Koch argued that any big firm’s desire to “maintain a good reputation” would prevent “widespread abuses in the OTC derivatives market,” a darkly hilarious claim, given what would become not only of Enron, but also Bear Stearns, Lehman Brothers and AIG.

The Enron Loophole became law in December 2000 – pushed along by Texas Sen. Phil Gramm, giving the Energy Group exactly what it wanted. “It completely exempted energy futures from regulation,” says Michael Greenberger, a former director of trading and markets at the CFTC. “It wasn’t a matter of regulators not enforcing manipulation or excessive speculation limits – this market wasn’t covered at all. By law.”

Before its spectacular collapse, Enron would use this loophole in 2001 to help engineer an energy crisis in California, artificially constraining the supply of natural gas and power generation, causing price spikes and rolling blackouts. This blatant and criminal market manipulation has become part of the legend of Enron. But Koch was caught up in the debacle. The CFTC would charge that a partnership between Koch and the utility Entergy had, at the height of the California crisis, reported fake natural-gas trades to reporting firms and also “knowingly reported false prices and/or volumes” on real trades.

One of 10 companies punished for such schemes, Entergy-Koch avoided prosecution by paying a $3 million fine as part of a 2004 settlement with the CFTC, in which it did not admit guilt to the commission’s charges but is barred from maintaining its innocence.

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David Koch (Photo: Alexis C. Glenn /Landov)

Trading, which had long been peripheral to the company’s core businesses, soon took center stage. In 2002, the company launched a subsidiary, Koch Supply & Trading. KS&T got off to a rocky start. “A series of bad trades,” writes a Koch insider, “boiled over in early 2004 when a large ‘sure bet’ crude-oil trade went south, resulting in a quick, multimillion loss.” But Koch traders quickly adjusted to the reality that energy markets were no longer ruled just by supply and demand – but by rich speculators trying to game the market. Revamping its strategy, Koch Industries soon began bragging of record profits. From 2003 to 2012, KS&T trading volumes exploded – up 450 percent. By 2009, KS&T ranked among the world’s top-five oil traders, and by 2011, the company billed itself as “one of the leading quantitative traders” – though Holden now says it’s no longer in this business.

Since Koch Industries aggressively expanded into high finance, the net worth of each brother has also exploded – from roughly $4 billion in 2002 to more than $40 billion today. In that period, the company embarked on a corporate buying spree that has taken it well beyond petroleum. In 2005, Koch purchased Georgia Pacific for $21 billion, giving the company a familiar, expansive grip on the industrial web that transforms Southern pine into consumer goods – from plywood sold at Home Depot to brand-name products like Dixie Cups and Angel Soft toilet paper. In 2013, Koch leapt into high technology with the $7 billion acquisition of Molex, a manufacturer of more than 100,000 electronics components and a top supplier to smartphone makers, including Apple.

Koch Supply & Trading makes money both from physical trades that move oil and commodities across oceans as well as in “paper” trades involving nothing more than high-stakes bets and cash. In paper trading, Koch’s products extend far beyond simple oil futures. Koch pioneered, for sale to hedge funds, “volatility swaps,” in which the actual price of crude is irrelevant and what matters is only the “magnitude of daily fluctuations in prices.” Steve Mawer, until recently the president of KS&T, described parts of his trading operation as “black-box stuff.”

Like a casino that bets at its own craps table, Koch engages in “proprietary trading” – speculating for the company’s own bottom line. “We’re like a hedge fund and a dealer at the same time,” bragged Ilia Bouchouev, head of Koch’s derivatives trading in 2004. “We can both make markets and speculate.” The company’s many tentacles in the physical oil business give Koch rich insight into market conditions and disruptions that can inform its speculative bets. When oil prices spiked to record heights in 2008, Koch was a major player in the speculative markets, according to documents leaked by Vermont Sen. Bernie Sanders, with trading volumes rivaling Wall Street giants like Citibank. Koch rode a trader-driven frenzy – detached from actual supply and demand – that drove prices above $147 a barrel in July 2008, battering a global economy about to enter a free fall.

Only Koch knows how much money Koch reaped during this price spike. But, as a proxy, consider the $20 million Koch and its subsidiaries spent lobbying Congress in 2008 – before then, its biggest annual lobbying expense had been $5 million – seeking to derail a raft of consumer-protection bills, including the Federal Price Gouging Prevention Act, the Stop Excessive Energy Speculation Act of 2008, the Prevent Unfair Manipulation of Prices Act of 2008 and the Close the Enron Loophole Act.

In comments to the Federal Trade Commission, Koch lobbyists defended the company’s right to rack up fantastic profits at the expense of American consumers. “A mere attempt to maximize profits cannot constitute market manipulation,” they wrote, adding baldly, “Excessive profits in the face of shortages are desirable.”

When the global economy crashed in 2008, so did oil prices. By December, crude was trading more than $100 lower per barrel than it had just months earlier – around $30. At the same time, oil traders anticipated that prices would eventually rebound. Futures contracts for delivery of oil in December 2009 were trading at nearly $55 per barrel. When future delivery is more valuable than present inventory, the market is said to be “in contango.” Koch exploited the contango market to the hilt. The company leased nine supertankers and filled them with cut-rate crude and parked them quietly offshore in the Gulf of Mexico, banking virtually risk-free profits by selling contracts for future delivery.

All in, Koch took about 20 million barrels of oil off the market, putting itself in a position to bet on price disruptions the company itself was creating. Thanks to these kinds of trading efforts, Koch could boast in a 2009 review that “the performance of Koch Supply & Trading actually grew stronger last year as the global economy worsened.” The cost for those risk-free profits was paid by consumers at the pump. Estimates pegged the cost of the contango trade by Koch and others at up to 40 cents a gallon.

Artificially constraining oil supplies is not the only source of dark, unregulated profit for Koch Industries. In the years after George W. Bush branded Iran a member of the “Axis of Evil,” the Koch brothers profited from trade with the state sponsor of terror and reckless would-be nuclear power. For decades, U.S. companies have been forbidden from doing business with the Ayatollahs, but Koch Industries exploited a loophole in 1996 sanctions that made it possible for foreign subsidiaries of U.S. companies to do some business in Iran.

In the ensuing years, according to Bloomberg Markets, the German and Italian arms of Koch-Glitsch, a Koch subsidiary that makes equipment for oil fields and refineries, won lucrative contracts to supply Iran’s Zagros plant, the largest methanol plant in the world. And thanks in part to Koch, methanol is now one of Iran’s leading non-oil exports. “Every single chance they had to do business with Iran, or anyone else, they did,” said Koch whistle-blower George Bentu. Having signed on to work for a company that lists “integrity” as its top value, Bentu added, “You feel totally betrayed. Everything Koch stood for was a lie.”

Koch reportedly kept trading with Tehran until 2007 – after the regime was exposed for supplying IEDs to Iraqi insurgents killing U.S. troops. According to lawyer Holden, Koch has since “decided that none of its subsidiaries would engage in trade involving Iran, even where such trade is permissible under U.S. law.”

These days, Koch’s most disquieting foreign dealings are in Canada, where the company has massive investments in dirty tar sands. The company’s 1.1 million acres of leases in northern Alberta contain reserves of economically recoverable oil numbering in the billions of barrels. With these massive leaseholdings, Koch is poised to continue profiting from Canadian crude whether or not the Keystone XL pipeline gains approval, says Andrew Leach, an energy and environmental economist at the business school of the University of Alberta.

Counterintuitively, approval of Keystone XL could actually harm one of Koch’s most profitable businesses – its Pine Bend refinery in Minnesota. Because tar-sands crude presently has no easy outlet to the global market, there’s a glut of Canadian oil in the midcontinent, and Koch’s refinery is a beneficiary of this oversupply; the resulting discount can exceed $20 a barrel compared to conventional crude. If it is ever built, the Keystone XL pipeline will provide a link to Gulf Coast refineries – and thus the global export market, which would erase much of that discount and eat into company profit margins.

Leach says Koch Industries’ tar-sands leaseholdings have them hedged against the potential approval of Keystone XL. The pipeline would increase the value of Canadian tar-sands deposits overnight. Koch could then profit handsomely by flipping its leases to more established producers. “Optimizing asset value through trading,” Koch literature says of these and other holdings, is a “key” company strategy.

The one truly bad outcome for Koch would be if Keystone XL were to be defeated, as many environmentalists believe it must be. “If the signal that sends is that no new pipelines will be built across the U.S. border for carrying oil-sands product,” Leach says, “that’s going to have an impact not just on Koch leases, but on everybody’s asset value in oil sands.” Ironically, what’s best for Koch’s tar-sands interests is what the Obama administration is currently delivering: “They’re actually ahead if Keystone XL gets delayed a while but hangs around as something that still might happen,” Leach says.

The Dodd-Frank bill was supposed to put an end to economy­endangering speculation in the $700 trillion global derivatives market. But Koch has managed to defend – and even expand – its turf, trading in largely unregulated derivatives, once dubbed “financial weapons of mass destruction” by billionaire Warren Buffett.

In theory, the Enron Loophole is no longer open – the government now has the power to police manipulation in the market for energy derivatives. But the Obama administration has not yet been able to come up with new rules that actually do so. In 2011, the CFTC mandated “position limits” on derivative trades of oil and other commodities. These would have blocked any single speculator from owning futures contracts representing more than a quarter of the physical market – reducing the danger of manipulation. As part of the International Swaps and Derivatives Association, which also reps many Wall Street giants including Goldman Sachs and JPMorgan Chase, Koch fought these new restrictions. ISDA sued to block the position limits – and won in court in September 2012. Two years later, CFTC is still spinning its wheels on a replacement. Industry traders like Koch are, Greenberger says, “essentially able to operate as though the Enron Loophole were still in effect.”

Koch is also reaping the benefits from Dodd-Frank’s impacts on Wall Street. The so-called Volcker Rule, implemented at the end of last year, bans investment banks from “proprietary trading” – investing on their own behalf in securities and derivatives. As a result, many Wall Street banks are unloading their commodities-trading units. But Volcker does not apply to nonbank traders like Koch. They’re now able to pick up clients who might previously have traded with JPMorgan. In its marketing materials for its trading operations, Koch boasts to potential clients that it can provide “physical and financial market liquidity at times when others pull back.” Koch also likely benefits from loopholes that exempt the company from posting collateral for derivatives trades and allow it to continue trading swaps without posting the transactions to a transparent electronic exchange. Though competitors like BP and Cargill have registered with the CFTC as swaps dealers – subjecting their trades to tightened regulation – Koch conspicuously has not. “Koch is compliant with all CFTC regulations, including those relating to swaps dealers,” says Holden, the Koch lawyer.

That a massive company with such a troubling record as Koch Industries remains unfettered by financial regulation should strike fear in the heart of anyone with a stake in the health of the American economy. Though Koch has cultivated a reputation as an economically conservative company, it has long flirted with danger. And that it has not suffered a catastrophic loss in the past 15 years would seem to be as much about luck as about skillful management.

The Kochs have brushed up against some of the major debacles of the crisis years. In 2007, as the economy began to teeter, Koch was gearing up to plunge into the market for credit default swaps, even creating an affiliate, Koch Financial Products, for that express purpose. KFP secured a AAA rating from Moody’s and reportedly sought to buy up toxic assets at the center of the financial crisis at up to 50-times leverage. Ultimately, Koch Industries survived the experiment without losing its shirt.

More recently, Koch was exposed to the fiasco at MF Global, the disgraced brokerage firm run by former New Jersey Gov. Jon Corzine that improperly dipped into customer accounts to finance reckless bets on European debt. Koch, one of MF Global’s top clients, reportedly told trading partners it was switching accounts about a month before the brokerage declared bankruptcy – then the eighth-largest in U.S. history. Koch says the decision to pull its funds from MF Global was made more than a year before. While MF’s small-fry clients had to pick at the carcass of Corzine’s company to recoup their assets, Koch was already swimming free and clear.

Because it’s private, no one outside of Koch Industries knows how much risk Koch is taking – or whether it could conceivably create systemic risk, a concern raised in 2013 by the head of the Futures Industry Association. But this much is for certain: Because of the loopholes in financial-regulatory reform, the next company to put the American economy at risk may not be a Wall Street bank but a trading giant like Koch. In 2012, Gary Gensler, then CFTC chair, railed against the very loopholes Koch appears to be exploiting, raising the specter of AIG. “[AIG] had this massive risk built up in its derivatives just because it called itself an insurance company rather than a bank,” Gensler said. When Congress adopted Dodd-Frank, Gensler added, it never intended to exempt financial heavy hitters just because “somebody calls themselves an insurance

In “the science of success,” Charles Koch highlights the problems created when property owners “don’t benefit from all the value they create and don’t bear the full cost from whatever value they destroy.” He is particularly concerned about the “tragedy of the commons,” in which shared resources are abused because there’s no individual accountability. “The biggest problems in society,” he writes, “have occurred in those areas thought to be best controlled in common: the atmosphere, bodies of water, air. . . .”

But in the real world, Koch Industries has used its political might to beat back the very market-based mechanisms – including a cap-and-trade market for carbon pollution – needed to create the ownership rights for pollution that Charles says would improve the functioning of capitalism.

In fact, it appears the very essence of the Koch business model is to exploit breakdowns in the free market. Koch has profited precisely by dumping billions of pounds of pollutants into our waters and skies – essentially for free. It racks up enormous profits from speculative trades lacking economic value that drive up costs for consumers and create risks for our economy.

The Koch brothers get richer as the costs of what Koch destroys are foisted on the rest of us – in the form of ill health, foul water and a climate crisis that threatens life as we know it on this planet. Now nearing 80 – owning a large chunk of the Alberta tar sands and using his billions to transform the modern Republican Party into a protection racket for Koch Industries’ profits – Charles Koch is not about to see the light. Nor does the CEO of one of America’s most toxic firms have any notion of slowing down. He has made it clear that he has no retirement plans: “I’m going to ride my bicycle till I fall off.”

UPDATEKoch Industries Responds to Rolling Stone — And We Answer Back

From The Archives Issue 1219: October 9, 2014

Three New Ways the Koch Brothers Are Screwing America

Keystone XL: State Department Dodges the Big Questions

Keystone Pipeline Endgame: Three Scenarios

Why Unions Should Stop the Koch Brothers From Buying the Tribune Papers

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