KOCH BROTHERS DIRTY MONEY
Tag Archives: koch brothers exposed
JADE HELM 15 and the American Massacre
JADE HELM is NOT “an ordinary training drill”
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. 
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: 
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: 
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?
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: 
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
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?
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
ANONYMOUS HQ
http://anonhq.com/ 
Real American heroes do not wear uniforms or carry weapons, they tell the truth and fight tyranny.
– j.tremaine
Mother Calls NYPD For Help; Cops Racially Assault Her, Send Kids To Foster Care
March 23rd, 2015 | by Vandita
She caught her son stealing $10 from her wallet and requested that the police come round and teach him a lesson. Creative, but not a good idea in the age of the militarized trigger-happy racially-insensitive cop. Four NYPD cops…
0
Costco Phasing Out Antibiotic-Treated Meat
March 23rd, 2015 | by EV
Costco, the second-largest retailer in the U.S., has announced that it will be cutting out antibiotics from their chicken and other meats. This announcement comes just days after McDonald’s announced it will stop…
2
33% of Americans Out Of Workforce, Highest Since 1978
March 23rd, 2015 | by Undercover economist
In February 2015, the number of Americans aged 16 and older not participating in the labor force hit 92,898,000, according to data released by the Bureau of Labor Statistics (BLS). The BLS data revealed that over the longer…
9
US Army Platoon Allows Racism For One Day Every Week. Brawls And Suicide Rated Good for Morale
March 23rd, 2015 | by CoNN
Ah, Racial Thursdays. The long-lost Hill-Billy cousin of Casual Fridays; both allow you to let your true personality shine, though where the latter stops at the exterior, the former allows people to get more than… skin-deep….
ACTIVISM
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1March 23rd, 2015
Activists Take ‘Tyrant’ Jury Head-On Inside Courtroom
Gavin Seim, a self proclaimed speaker for liberty and an independent filmmaker from Washington, was detained in January for…Read More
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5March 22nd, 2015
Children in China Play ‘Angry Birds’ With Live Sparrows: Activist Calls Upon China to Introduce Animal Rights Laws
Shaanxi province, China – Activist Huang Chu, 45 (from Lantian County in north-western China) stumbled upon a group of…Read More
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1March 22nd, 2015
The Man Who Refuses to Leave Fukushima Because Of His Compassion for Animals
On 11th March 2011, the Fukushima Daiichi nuclear disaster was reported by the Japanese government. The disaster was precisely at…Read More
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13March 21st, 2015
Anonymous Released 9,200 ISIS Supporter Twitter Accounts
Anonymous, who partnered with two other tech-savvy factions — GhostSec and CtrlSec — for this operation, are…Read More
RIGHTS
1
Mother Calls NYPD For Help; Cops Racially Assault Her, Send Kids To Foster Care
March 23rd, 2015 | by Vandita
She caught her son stealing $10 from her wallet and requested that the police come round and teach him a lesson. Creative, but…
0
NYPD IP Addresses Linked to Attempts at Censoring Wikipedia Entries on Police Brutality
March 20th, 2015 | by CoNN
The NYPD has been caught red-handed censoring cases of police brutality against American citizens on Wikipedia entries. Up to 85…
0
Eric Garner’s Murder: Director Spike Lee Makes A Powerful Point
March 20th, 2015 | by Vandita
Eric Garner succumbed to police brutality on July 17, 2014. Even after medical examiners concluded that Garner was killed by…
2
SHOCKING: Cop Raped Woman While Her Infant Daughter Was In Bed
March 17th, 2015 | by Vandita
24-year-old Ryan James Bruggink, former Grand Rapids Police officer, sexually assaulted a woman while her infant daughter was…
CYBER
SECURITY
2
Bank of America Is Under Attack By Hackers
March 23rd, 2015 | by legion
Customers of bank of America are under attack. Hackers have created a website that mirrors Bank of America’s, and sends…
5
Google Warning: FBI Seeking Access to Computers Globally
March 19th, 2015 | by Anon.Dos
Google is not going to sit tight on this one, they have decided to come out and boldly go against the United States Justice…
3
Sony PlayStation User Accounts are Getting Hacked
March 18th, 2015 | by Anon.Dos
Somebody has had their PSN account hacked, their PS4 deactivated and their account utilized to fraudulently buy content worth…
0
ALERT:Malicious Links Goes Viral On Facebook
March 18th, 2015 | by legion
Hackers and spammers are taking advantage of social networking websites like Facebook and twitter; they are masking their worms…
POLITICS
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2March 23rd, 2015
33% of Americans Out Of Workforce, Highest Since 1978
In February 2015, the number of Americans aged 16 and older not participating in the labor force hit 92,898,000, according to data released by the Bureau of Labor Statistics (BLS). The BLS data revealed that over the longer trend, the labor force participation rate was…Read More
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33March 22nd, 2015
This Is What a McDonald’s Worker Makes: A Fight To Raise Minimum Wage
The image below was shared by the Fight for $15, a campaign that…Read More
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8March 22nd, 2015
$15 Minimum Wage Is Killing Seattle’s Restaurants? Owners Say No
Seattle is set to launch the highest minimum wage in America next…Read More
ENVIRONMENT
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0March 23rd, 2015
Costco Phasing Out Antibiotic-Treated Meat
Costco, the second-largest retailer in the U.S., has announced that it will be cutting out antibiotics from their chicken and…Read More
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7March 22nd, 2015
Italian Architect Merges Nature with Urban Living
Turin, Italy – Luciano Pia, a brilliant architect out of Italy, has a vision of how people and nature can live together…Read More
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1March 21st, 2015
UK’s First Poo-Powered Bus Set To Go Into Service
This bus, powered by bio-methane gas produced from human and food waste, will utilize waste from more than 32,000 households, and…Read More
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2March 21st, 2015
NASA: California Has Only One Year of Water Left in Reservoirs
NASA’s Senior Water Scientist, Jay Famiglietti, announced in a Los Angeles Times op-ed piece that the state of California…Read More
TECHNOLOGY
2
Bank of America Is Under Attack By Hackers
March 23rd, 2015 | by legion
Customers of bank of America are under attack. Hackers have created a website that mirrors Bank of America’s, and sends…
32
Is NASA Hiding Alien Life? Live Footage Cutted When UFO Appeared
March 23rd, 2015 | by Vandita
NASA is accused of cutting its live video feed from the International Space Station when a UFO appears. Toby Lundh recently…
0
UBC Students Invent Fast, Affordable Desktop Recycling For Your 3D Printer
March 21st, 2015 | by Tech Anon
Although the idea of creating objects in three dimensions is not a new one, 3D printing or “additive manufacturing” is fairly…
3
And… China Has Blocked Reuters…
March 21st, 2015 | by legion
Another news outlet is meeting the same fate as The Wall Street Journal and the New York Times in China. The Chinese government…
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INSIDE THE KOCH BROTHERS TOXIC EMPIRE
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.
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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.
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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.
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.
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.”
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.
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.
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.”
UPDATE: Koch 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
NETANYAHU’S UN SPEECH BETRAYS THE JEWISH PEOPLE WITH ZIONIST PROPAGANDA
PM Netanyahu’s UN Speech – The Pathology Of Evil By Gilad Atzmon 9-29-9 Israeli PM Netanyahu’s speech at the UN is a major insight into the Israeli’s mentality, psyche and logic. In his speech Netanyahu, a prolific and charismatic speaker, gives air to his genocidal inclinations, he brings to light the Israeli supremacy but he also allows us to detect some shaky and vulnerable spots at the heart of the Jewish national narrative. Reading Netanyahu’s speech makes it very clear that both the Zionist Shoa and the ‘promised land’ narratives are on the verge of collapse. It seems as if the ‘discredited’ Iranian president Ahmadinejad has managed to succeed after all. Don’t You Mess With Our Shoa Israelis love their Shoa, for the Shoa is no doubt their best selling Hasbara (propaganda) product. It somehow allows them to kill en masse and to do it indistinguishably while insisting that it is they who happen to be the victims. “I went to a villa in a suburb of Berlin called Wannsee.” Said Netanyahu. “There, on January 20,1942, after a hearty meal, senior Nazi officials met and decided how to exterminate the Jewish people.” PM Netanyahu, if you are genuinely interested in ‘extermination plans’ you do not have to travel to Wannsee, Berlin. All you have to do is visit your IDF’s headquarters in Tel Aviv. Your chief commanders will guide you through their IDF ‘solutions’ for the Palestinians. At the end of the day, it is your army that surrounds Palestinians with barbed-wire, it is you who keep civilian populations in a siege with inadequate food supplies and medicine. It is your army that poured WMD over the most densely populated neighbourhoods on this planet. While the real meaning of the ‘Nazi Final Solution’ (Die Endlösung) is still discussed by historians who fail to agree between themselves what it really meant, the true reality of the Israeli murderous solution has been seen by us all. However, it is almost amusing to see PM Netanyahu rushing to defend the Zionist holocaust narrative. Looking at Netanyahu presenting the protocol of the Wannsee conference to the UN assembly gives a clear impression that the Israeli PM believes that the Shoa needs an urgent pump of credibility. For the first time, the Shoa is on the defence. “Here is a copy of the plans for Auschwitz-Birkenau, where one million Jews were murdered. Is this too a lie?” asks the Israeli PM. PM Netanyahu, may I suggest to you that not a single humanist cares about the exact numbers: whether it was one or four millions Jews who died in Auschwitz, no one doubts that the camp was a horrible place. Yet, two questions must be answered once and for all: how is it that the Jews, who suffered so much during that war, managed to get themselves involved in a colossal racist crime against the Palestinians (1948 Nakba) just three years after the liberation of Auschwitz? How is it that the Israeli leadership, that happens to be so sensitive to Jewish suffering, manages to neglect the pain they inflict on millions of Palestinians? Supremacy and Beyond As a National movement, Zionism fails to respect other national and popular movements. Seemingly Netanyahu fails to respect the Iranian people and their regime. “Wherever they can, they impose a backward regimented society where women, minorities, gays or anyone not deemed to be a true believer is brutally subjugated.” Netanyahu, must know that the Judaic law is not very different from Islam on these matters. He must also remember that it is in his country that gays were murdered in the street just a month ago. It is almost amusing that Netanyahu chooses to equate Iran with Barbarism and the Middle Ages for its treatment of minorities. As far as minorities are concerned, the Jewish state is actually the darkest place on this planet. In Netanyahu’s promised land half of the population cannot participate in the democratic game just for failing to be Jewish. Israel according to Netanyahu is the embodiment of Western modernity. “We (the Westerners) will crack the genetic code. We will cure the incurable. We will lengthen our lives. We will find a cheap alternative to fossil fuels and clean up the planet. I am proud that my country Israel is at the forefront of these advances.” I must admit that I am not at all overwhelmed by Israeli scientific or technological achievements. Nor have I ever seen any evidence of Israeli attempts to save humanity or even the planet. In fact all I see is quite the opposite. However, if Netanyahu welcomes scientific progress, he should be the first to rally for the Iranian nuclear project. As we all know, this doesn’t seem to be the case. He, for some reason, thinks that, at least regionally, nuclear energy and weapons must remain Jew only property. Netanyahu argues that “if the most primitive fanaticism can acquire the most deadly weapons, the march of history could be reversed for a time.” Netanyahu may well be correct but one should point out to him that the above applies to Israel more than any other country, state or society. For the time being it is the Jewish State that has been caught pouring WMD on its imprisoned civilian population. It is the Jewish State that is dragging us all into an ‘eye for an eye’ primitive Biblical fanaticism. As if this is not enough, it is also America and Britain that launched illegal wars orchestrated by Zionist led Neocons and fundraisers. This war has cost more than one million lives so far. However, for once I agree with Netanyhau: “The greatest threat facing the world today”, he says, “is the marriage between religious fanaticism and the weapons of mass destruction.” In fact, no one could describe the danger posed by the Jewish state and Zionism any better. Israel is indeed a deadly marriage between Old Testament gross genocidal barbarism, Zionist fanaticism and a huge arsenal of WMD, chemical, biological and nuclear that has already been partially put into action. 
Sabbath Goyim Like other Zionist operations around the world, Netanyahu is convinced that the Goyim should fight the Jewish wars. “Above all, will the international community stop the terrorist regime of Iran from developing atomic weapons, thereby endangering the peace of the entire world?” I actually would like to stress that PM Netanyahu is all wrong here. If the United Nation is interested in bringing peace to this region and the world, it is of the essence to help Iran to develop its nuclear project and even its military nuclear capacity. This seems to be the only thing that may curb the English Speaking Empire’s lethal expansionist enthusiasm as performed recently in Iraq, Pakistan and Afghanistan. It will surely stop the Zionists from celebrating their symptoms at the expense of their neighbours. Following the successful transformation of the American and British armies into an Israeli subservient mission force, Netanyahu seems to expect the UN to follow and to fulfil the very same role. “Hamas”, he says, “fired from Gaza thousands of missiles, mortars and rockets on nearby Israeli cities. Year after year, as these missiles were deliberately hurled at our civilians, not a single UN resolution was passed condemning those criminal attacks.” I guess that someone should remind the Israeli PM that the dispute between Hamas and Israel is not exactly an international quarrel, for Palestine is not a sovereign state and Gaza is nothing less than an Israeli-run concentration camp. In other words, the practicality of the matter is simple. The UN should only deal with war crimes and crimes against humanity committed by Israel, its leadership and its army. It is not down to the UN to pass any kind of judgment on the oppressed. Mass Murder Fantasies It doesn’t take long before Netanyahu lists his ideological mentors and the core of his lethal inspiration “When the Nazis rocketed British cities during World War II” Actually the allies levelled German cities, causing hundreds of thousands of victims By these twisted standards, the UN Human Rights Council would have dragged Roosevelt and Churchill to the dock as war criminals. What a perversion of truth. What a perversion of justice. Delegates of the United Nations, will you accept this farce?” Netanyahu is almost correct. In his recounting of the 2nd WW he surely admits here that Israel follows Roosevelt’s and Churchill’s mass murder tactics. But he surely fails to realise that if it was indeed down to ethics and Justice (rather than the usual dirty politics) Roosevelt and Churchill would have been charged with war crimes on a most severe scale. Shockingly enough, Netanyahu falls into the most obvious legal trap equating Israeli activity with acts of carpet bombardment on a huge scale. For those who fail to see it all, this is a rapidly blinking red light hazard. In Netanyahu’s perception of reality nuking countries and flattening towns is a justifiable act. Roosevelt and Churchill seem to be his moral entitlement. In fact these statements are enough to make it clear to every reasonable human being that Israel is a genocidal entity that is capable of bringing our civilisation to a devastating end. This is a wake up call: it is not just the Palestinians or the Iranians. It is actually all of us. Bibi* the Peace Maker By now, the Israeli PM is ready to state his Judeo centric peace mantra. “Ladies and Gentlemen, all of Israel wants peace”. Yet as far as statistics are concerned, we have recently learned that 94% of the Israeli Jews also approved the carpet bombardment of their next door neighbours. It is impossible not to see a clear discrepancy between the ‘peace loving’ verbalism and the murderous reality. “We ask the Palestinians to finally do what they have refused to do for 62 years: Say yes to a Jewish state.” Once again, I happen to agree with PM Netanyahu. The Palestinian may as well say YES to a Jewish state, but not in Palestine or in the Middle East. If Obama, Brown, Merkel or any other deluded world leader who is still insisting to approve the validity or necessity of a racially orientated ‘Jewish national homeland’, he or she is more than welcome to allocate land to such a project within his or her own territory. Palestinians should say NO to a Jewish state in the Holy Land or in the region. Palestinians should never agree to the existence of a Jewish state on their land. In fact the UN must follow this line and do whatever it can to dismantle this evil apartheid regime. Khazarian United To a certain extent, Netanyahu’s UN speech expresses some deep concerns Jews tend to keep to themselves. At the end of the day, the Israelis and Ashkenazi Israelis in particular know pretty well that Palestine is not exactly the land of their ancestors. If the Israeli Ashkenazi Jews, including Netanyahu, do want to find their roots, Khazaria is the place to start. However, Netanyahu tries to defuse these historical facts. “The Jewish people are not foreign conquerors in the Land of Israel. This is the land of our forefathers We are not strangers to this land. It is our homeland” says Netanyahu with total conviction. PM Netanyahu, I will make it plain and clear. Not only are you foreign to the land, you are also foreign to almost every possible understanding of the notion of humanity. In fact, the Separation Wall that is going to be left after the inevitable disappearance of your ‘Jew only democracy’ will serve generations to come with an astonishing historical monument of Jewish national identity estranged from ethics, universalism and human brotherhood. The crime against humanity committed by the Jewish state in the name of the Jewish people is not something that will be wiped out from the history text books in a short time. Quite the opposite; it will stand as another mythological chapter in this never-ending saga of supremacist compulsive pathological self-loving. “We must have security” says Israeli PM Benjamin Netanyahu as he ends his speech. And I am here to disappoint him. Israel will never be secured. It was born in a sin, and its existence surpasses any notion of ethics or human existence. The Jewish state has passed the ‘no return zone’. It is doomed to vanish. We can only hope that once this happens the process of Jewish assimilation and integration into humanity will re-embark. At the end of the day Jewish Nationalism both left, right and centre was there to keep Jews apart. The history of the 20th century teaches us that this tendency to segregate oneself is bad for humanity and it is also devastating for the Jews. * Netanyahu’s nickname is Bibi MORE: Zionist Knesset member Shelly Yachimovich Slams Netanyahu’s Speech at UN Member of the Zionist Parliament (Knesset) and former opposition leader Shelly Yachimovich on Tuesday criticized the Zionist Prime Minister Benjamin Netanyahu’s Monday speech at the U.N. General Assembly in New York, saying “it had disappointed the Israeli people.” “The speech did not deliver good news for Israelis, who are desperate for hope,” Yachimovich, a former leader of Zionist Labor party, was quoted as saying by The Jerusalem Post. “The prime minister should have delivered a new diplomatic horizon,” she said, “but he does not miss an opportunity to miss an opportunity.” World Bulletin news website reported that Yachimovich also renewed calls for opening talks with Abbas, saying he represented the only viable Palestinian peace partner for the Zionist entity. “Reaching a peace agreement with the Palestinians is a clear Zionist-Israeli interest,” she argued. In his Monday speech at the U.N. General Assembly, Netanyahu slammed Abbas’ address, delivered earlier before the same assembly, in which the Palestinian leader accused Israel of committing “genocide” during its recent 51-day military onslaught on the Gaza Strip. During 51 days of fierce Zionist bombardment on the Strip, more than 2,150 Palestinians were killed and nearly 11,000 injured – mostly civilians – while thousands of homes were damaged or destroyed. The Zionist onslaught ended late last month with a cease-fire that was a strategic victory for the Palestinian resistance over the Zionist killing machine.
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Iran’s leadership, UN representatives, and state-run media responded to Prime Minister Benjamin Netanyahu’s UN speech with a coordinated line that presents Israel as the problem instead of Iran, which is said to be pursuing a nuclear program for peaceful purposes under IAEA supervision. Iran’s news agencies also quoted commentaries by foreign reporters portraying the speech as a failure that played into Iran’s hands. Iran’s cartoonists (like their counterparts in the West) jumped eagerly on Netanyahu’s bomb diagram and “red line,” producing numerous cartoons that showcase this motif and link it to Iran’s propaganda line on the speech. This also marks the first time Iran has leveraged its new role as president of the Non-Aligned Movement (NAM), using the speech to try and boost cooperation among its members. In a discussion on the fight against nuclear terror that occurred during the UN General Assembly session, Iranian foreign minister Ali Akbar Salehi – in the spirit of Iran’s reaction to Netanyahu’s speech and in the name of the nonaligned states – called on Israel (“the Zionist regime”) to join the Non-Proliferation Treaty and accept IAEA supervision over its nuclear facilities. Salehi stressed NAM’s commitment to nuclear disarmament.
BUSH DYNASTY OF DEATH REVISITED
The Bush Dynasty of Death: Four Generations of Wall Street War-Making and War-Profiteering
http://911nwo.com/Dynasty%20of%20Death.html
There is no historic parallel that can be drawn, nothing compares with the accomplishments of the Bush family. No dictator or tyrant can equal the suffering and destruction they have wrought on humanity, as they are not mere tyrants themselves, but the makers and breakers of tyrants, the organizers and profiteers of war and death. They are not alone and solely responsible for creating the present-day military-industrial complex, however since 1915 the Bush family has been directly involved in World War One and Two, the Korean War, the Vietnam War, numerous CIA secret wars, the Gulf War, and now a “Never Ending War.” The past four generations of this one family have had a hand in promoting and profiting from most of the major wars that America has waged since the beginning of the industrial age.
Schuyler Ebbets
The story of Prescott Bush and Brown Brothers, Harriman is an introduction to the real history of our country. It exposes the money-making motives behind our foreign policies, dating back a full century. The ability of Prescott Bush and the Harrimans to bury their checkered pasts also reveals a collusion between Wall Street and media that exists today.
Historian Edward Boswell
If the American people had ever known the truth about what we Bushes have done to this nation, we would be chased down in the streets and lynched.
George H. W. Bush, 41st President, in interview with Sarah MacClendon, 1992
Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we.
George W. Bush, 43rd president, BBC interview
Every war which Americans have fought or may fight in the future outside their own continental boundaries has been or will be a racket- a mean, cruel, yes, filthy racket….. Why don’t those damned oil companies fly their own flags on their personal property- maybe a flag with a gas pump on it.
Brigadier General Smedley D. Butler, from War is a Racket (1933)
The potential for private profit in U.S. war making has become almost impossible to exaggerate.
Chalmers Johnson, from “The War Business,” Harpers (2003)
Introduction
Henry Ford, founder of Ford Motor Company, once stated there are two classes of financiers: 1) those who profit from war and use their influence to bring about war for profit, and 2) “constructive” financiers. Ford Motor Co., along with about 100 other major U.S. banks and corporations, belongs to the first group (Higham’s Trading with the Enemy). Indeed, Ford himself was actually decorated by the Nazis in 1938 for his service to Nazism.
Other prominent international banking families that simultaneously bankrolled Hitler, Stalin, and Roosevelt during the first half of the 20th century include the Rockefellers (Standard Oil, Chase Bank), the Rothschilds, the Schiffs, and the Warburgs, among others. The Bush family, in particular, has played a pivotal role in the orchestration of, and profit from, World Wars I and II, the Korean War, the Vietnam War, numerous CIA secret wars, and the current “never-ending,” phony “War on Terror”.
Why would the world’s richest individuals simultaneously fund communism in Russia, fascism in Germany, and socialist democracy in the United States? Georgetown historian Carrol Quigley put it this way: “The powers of financial capitalism had a far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.” These financial powers had learned that war is the most profitable of all businesses and also the most effective means of changing the global political landscape. Thus, over the past two centuries at least, they have covertly manipulated politicians and nations into wars. Their ultimate goal was and is to establish a “New World Order”, a totalitarian one-world government ruled by the very few and very rich, i.e., them. Des Griffin has termed this a Fourth Reich of the Rich (Griffin, 1976). George Orwell and Aldous Huxley described what such a world might look like in their classic novels, 1984 and Brave New World.
President George H. W. Bush was not the first or only prominent man to proclaim this “New World Order”. Hitler, President Woodrow Wilson, author H.G. Wells and innumerable other politicians, writers and businessmen have also heralded its immanent arrival. David Rockefeller, Chairman of Chase-Manhattan Bank and arguably the most powerful American of the last half-century, proclaimed: “We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the “New World Order.”
Among the most pro-active implementers of this centuries-old project to establish a one-world government is the Bush family, two of whom have become U.S. presidents. A brief summary of their major “accomplishments” should be sufficient to indicate that their activities constitute the highest crimes (mass murder, treason, and war profiteering) against the people of the United States and humanity.
Samuel Prescott Bush (1863-1948: father of Prescott Sheldon Bush, grandfather of George H.W. Bush, great grandfather of George W. Bush). Founder of the Buckeye Steel Castings Company in 1894, director of Remington Arms Company, and Chief of the Ordnance, Small Arms and Ammunition Section of the War Industries Board for World War I.
In 1918, just after the U.S. entered World War I, Samuel P. Bush, an Ohio steel executive, became chief of the Ordnance, Small Arms and Ammunition Section of the War Industries Board. In this capacity, he sold weapons made by manufacturers such as his own Remington Arms Company to 75% of the WWI combatants on both sides. Ebbets (2006) notes that the War Industries Board, an unholy alliance between government and the big munitions corporations of the day, was the fore-runner of today’s “military-industrial complex.” Other directors of the War Industries Board included Clarence Dillon, Wall Street banker and the so-called Chief of Ordnance for the Small Arms and Ammunition Section, Samuel Pryor, CEO of Remington Arms, and Bernard Baruch, who in his dual roles of Wall Street Banker and head of the War Industries Board made profits of over $200 million. Meanwhile, by the close of WWI in 1918, when this Bush/Baruch/Pryor/Dillon business venture officially ended, some 37,508,686 human beings had been killed in that conflict.
Congressional committee hearings in 1934 chaired by U.S. Senator Gerald Nye attacked Samuel Bush and other members of the War Industries Board as war profiteers and “Merchants of Death.” The committee found that salesmen from these companies had helped to manipulate the nations into World War I and the corporations then made astronomical profits from the sales of weapons, all at taxpayer expense, of course. In 1914, the German army under the Kaiser, armed mainly by Samuel Bush, was the largest and best armed in the world. After WWI, the German army was forced to disarm, but Bush was allowed to keep his many millions, and his arms business thrived. Bush went on to become the first president of the National Association of Manufacturers. In 1944, Bush was awarded a huge government contract to make armor casings for WWII.
Samuel Bush was also a partner in the Union Banking Corporation (UBC), which functioned as the American umbrella front for Germany’s wealthiest industrialists and industries and built up Hitler and the Nazi Party, thereby helping to bring about World War II. Journalist John Buchanan concludes that the Bush family has had their money invested on every side of every war since the Spanish American War, and that the longer each war lasted the more money they made.
Interestingly, most of the government records and correspondence of Samuel Bush’s arms deals have been burned “to save space” in the National Archives. This pattern of the systematic deletion of large portions of the public record is typical for activities of all the Bushes.
George Herbert Walker (father of Dorothy Walker, maternal grandfather of George H.W. Bush and maternal great grandfather of George W. Bush): Wall Street banker and director or president of G.H. Walker and Co., J.P. Morgan and Co., Guaranty Trust Co., W.A. Harriman and Co., and Union Banking Corporation. He was also co-founder of Brown Brothers, Harriman, Wall Street’s oldest and largest private investment house, and for many years, the world’s largest, private bank.
Walker was a St. Louis banker/stock broker and corporate wheeler-dealer who had insider business contracts with the premier families of America’s “robber baron” era; the Morgan, Rockefeller, Vanderbilt, Whitney, and Harriman families. His father had been a very successful dry goods wholesaler who had thrived on imports from England. That British connection paid for the Walker summer homes in Santa Barbara, California and at Kennebunkport, Maine- a locale still favored for Bush family reunions. Averell Harriman (Yale Skull & Bones secret society, class of 1913), inheritor of the Harriman railroad fortune, wanted corporate insider “Bert” Walker to help him create his own financial and intelligence-gathering organization. In 1919, Walker organized the W.A. Harriman & Co. private bank and became its president and CEO. He went on to co-found Brown Brothers, Harriman, which for many years was the largest private bank in the world.
In 1922, Walker and Averell Harriman went to Berlin to set up a German branch for their banking and investment operations, which were largely based on trading critical war resources such as steel and coal. There, they met with Fritz Thyssen, Germany’s wealthiest man and the coal and steel baron who later became Hitler’s prime sponsor and the financial architect of the Nazi war machine (Thyssen, I Paid Hitler). At that time, they also made arrangements to establish a bank for Thyssen on Wall Street. Two years later, Harriman formally began the Union Banking Corporation (UBC) in Manhattan in order to handle German funds supplied by the Thyssen-owned Nazi front Bank voor Handel en Scheepvarrt (BHS) in the Netherlands. The money was used for the mass purchase of American commodities to supply the Nazis. W.A. Harriman & Co. executives labeled these dealings the “Hitler Project.”
Using his insider connections on Wall Street as well as in Britain and Germany, Walker made his fortune helping to build up the Soviet Union and Nazi Germany, financing their oil, coal, steel, and manganese industries, among others. He became President of Union Banking Corporation (UBC), which was actually a clearing house for a number of Thyssen-controlled enterprises and assets, including as many as a dozen businesses. In fact, government investigators later found that all the assets of UBC and its many related businesses belonged to Thyssen-controlled enterprises, such as his Bank Voor Handel en Sheepvaart in Rotterdam. UBC also bought and shipped overseas gold, steel, coal, and U.S. Treasury and war bonds to Germany to finance its industrial reorganization under the Nazis. Thus, UBCs function was to launder money for Hitler and supply raw materials essential for Germany’s waging World War II. Of course, Walker and others went to great pains to conceal the real nature of their business from the U.S. government. Cornelius Livense, a president of UBC even claimed he did not know the actual ownership of the company.
Walker’s most prominent American partners in financing Hitler’s war machine were E. Roland and Averell Harriman (Skull and Bones, ’17 and ’13) and his son-in-law, Prescott Bush (Skull and Bones, ’17). Together, these individuals ran numerous subsidiaries of UBC, including Harriman-Walker, the Hamburg-Amerika Line (the world’s largest private shipping line and a cover for (Thyssen’s) I.G. Farben’s Nazi espionage unit in the U.S.), the American Ship and Commerce Co. (which smuggled German agents, propaganda, and money into America to bribe American politicians to support the Nazi cause), the Harriman Fifteen Corporation, and the Silesian Holding Company. In addition, their Consolidated Silesian Steel Corporation owned and operated a complex of steel-making, coal-mining, and zinc-mining activities in Oswiecim, one of Poland’s richest mineral regions. That is where Hitler set up the Auschwitz slave concentration, were millions reportedly died. Friederich Flick, who owned two-thirds of this Consolidated Silesian Steel, was sentenced to 7 years imprisonment by the Nuremburg Tribunal. Averell Harriman owned the other 1/3 of Consolidated Silesian Steel. He and the other American partners were never tried for their participation in the so-called Holocaust.
The Nazi army was largely equipped by Flick, Harriman, Walker, and Bush with materials stolen from Poland, which Hitler invaded illegally in 1939. Meanwhile, Soviet army vehicles were fueled by oil pumped from Baku wells revived by the Harriman/Walker/Bush enterprise.
A 1934 Congressional investigation determined that the Hamburg-Amerika Line subsidized a wide range of Nazi propaganda efforts in both Germany and the U.S. Nonetheless, when the U.S. government seized the Silesian-American Corp. in 1942 under the “Trading with the Enemy Act,” George Herbert Walker was still the senior director of the company.
Prescott Sheldon Bush (son of Samuel Prescott Bush and Fiona Sheldon Bush, father of George H.W. Bush and grandfather of George W. Bush’s grandfather; 1895-1972, Yale, Skull & Bones, class of 1917): Wall Street banker, Vice President of W. A. Harriman and Co., and director or senior partner in and Brown Brothers, Harriman and Union Banking Corporation (UBC), and a manager of UBC subsidiaries, including the Silesian-American Corp., the Holland-American Trading Corp. the Seamless Steel Equipment Corporation, and Consolidated Silesian Steel Corporation, all of which were Nazi front organizations.
After marrying George Herbert Walker’s daughter, Dorothy in 1926, Prescott Bush became managing director of Brown Brothers, Harriman and the Union Banking Corporation (UBC). In that same year, an associate of Samuel Bush and Clarence Dillon acquired $70 million from Fritz Thyssen to set up the United Steel Works Corporation or the German Steel Trust. This became Germany’s largest industrial corporation. His directorship extended from 1920’s through the 1940’s, when, in Oct. 1942, the U.S. government seized UBC’s assets under the “Trading with the Enemy Act.” U.S. government investigations at that time revealed that Bush’s Nazi-front bank had worked directly with Fritz Thyseen’s German Steel Trust produced 50.8% of Nazi Germany’s pig iron, 41.4% of Nazi Germany’s universal plate, 36% of the heavy plate, 38.5% of the galvanized steel metal, 45.5% of the pipes and tubes, 35% of the explosives, and 22.1% of the wire used by Nazi Germany. Even so, Prescott Bush failed to divest himself of more than a dozen “enemy national” relationships that continued until as late as 1951 (Buchanan and Michael, 2005).
Another story which seems to have been expunged from the public record is that Bush and his partners profited from the slave labor at the Auschwitz concentration camp, via their partnership with Fritz Thyssen’s I.G. Farben, the third largest business in Germany under Hitler. Prescott Bush, William Stamps Farish, Rockefeller’s Standard Oil Company, and the I.G. Farben Company financed and built the Auschwitz camp, which opened in 1940, to produce artificial rubber and gasoline from Poland’s coal. Hitler’s government supplied political opponents as the expendable “labor force.” Indeed, a Dutch intelligence agent reports that a portion of the slave labor force in Poland was actually “managed by Prescott Bush” (Clamor Magazine, 2002). The story of how the Bush’s family fortune is based on Holocaust blood money has been suppressed by the U.S. media and has certainly not appeared in any of the major Bush family biographies.
Other powerful business concerns which aided Hitler preceding and during WWII include the Rockefeller family’s Standard Oil and Chase Bank, GE, ITT, RCA, the Ford Motor Co., and the DuPont and Morgan families. When the U.S. government seized control of UBC under the “Trading with the Enemy Act” in 1942, all the shares were owned by E. Roland Harriman, Prescott Bush, three Nazi executives, and two other Bush associates. Four of the eight directors were members of the Yale secret society Skull and Bones, class of ’17.
At that time, the U.S. government also seized several UBC subsidiaries also run by Bush-Harriman, including The Holland-American Trading Corp., the Seamless Steel Equipment Corp., the Silesian-American Corp. (which supplied coal to the Nazi war industry), and the Harriman Fifteen Holding Company. Despite the fact that the U.S. government determined that huge sections of Prescott Bush’s empire were operated on behalf of Nazi Germany and had greatly assisted the Nazi war effort, the U.S. government awarded each of the UBC directors, including Prescott Bush, $1.5 million in compensation for their seized assets. Furthermore, U.S. government documents indicate that between 1942 and 1951, Prescott Bush maintained business contacts with named Nazis, moving gold, diamonds, and other assets to those individuals. This activity only stopped in 1951, upon the death of Fritz Thyssen in Argentina (Buchanan and Michael, 2005).
In summary, Hitler’s rise to power was only possible due to financial and logistical support given by super wealthy Wall Street and London financiers, including Prescott Bush, George Herbert Walker, and Averell Harriman, among others. In turn, these individuals profited enormously from the war they helped create. The major part of the Bush family fortune is due to the “Hitler Project”, which included the slave labor concentration camp at Auschwitz. Although Bush, Walker, the Harrimans, and other Bonesmen in the Union Banking Corporation were found guilty of treason under the “Trading with the Enemies Act” in 1942, their identities were never revealed by the media. Meanwhile, by the end of WWII in 1945, their “Hitler Project” had resulted in the killing of 62,537,400 human beings.
After the war, Prescott Bush went on to serve as a director of Columbia Broadcasting System, Inc. (CBS), Prudential Insurance, Dresser Industries, Inc., Hydrocarbon Research, Inc., Wanadium Corp. of America, and U.S. Guaranty Trust, among other companies. In 1948, Prescott Bush used his Holocaust blood money to run for Senator from Connecticut. He was defeated, in large part because media exposure of the Bush family’s long history of supporting eugenics research at Yale. But by 1952, Bush was a leader in the push to hand the Republican presidential nomination to WWII general and hero, Dwight D. Eisenhower. On July 28, 1952, as the election approached, Connecticut’s senior Senator, James O’Brien MCMahon, died mysteriously at the age of 48. This was extremely convenient for Prescott Bush. At a special delegated meeting of mostly Yale-affiliated Republican party leaders, Prescott was selected to receive the Republican nomination for that recently-vacated Senate seat. He was then swept into office in the 1952 election, running on the same ticket as Eisenhower. By a technicality, Bush instantly became Connecticut’s senior Senator, with extra powers in Congress. He was re-elected in 1956 (again, on Eisenhower’s coat tails) and retired from the Senate in 1960. Whilst in Washington, Prescott Bush was President Eisenhower’s confidant and daily golf partner throughout his two terms.
Richard Nixon’s biography reveals that it was Prescott Bush and the Orange County Republican Party that gave him his start in politics. Prescott Bush had placed an add in an L.A. newspaper to recruit someone willing to run against a Democratic Congressman. (This particular Democratic Congressman had introduced a bill that would repeal the Federal Reserve Act of 1913 (the legislation that gave to international bankers the exclusive monopoly rights to print money, at interest, for the U.S. government). Nixon answered the ad, won the Congressional seat through various dirty campaign tricks (which became his modus operendi), and later, was Prescott Bush’s personal pick for Vice President on the 1952 Republican (Eisenhower) presidential ticket. Thus, from the very beginning of his political career, Nixon was a mouthpiece/puppet for the Bush dynasty.
George Herbert Walker Bush (son of Prescott Sheldon Bush and Dorothy Walker (daughter of George Herbert Walker), father of George W. Bush; 1924-present, Yale, Skull & Bones, class of 1948).
Our 41st president’s political life has been intertwined with four of the most powerful and profitable business enterprises on the planet: banking, oil, the arms/intelligence industries, and sales of illegal drugs. Tarpley and Chaitkin’s George Bush: The Unauthorized Biography (1992) offers the most detailed compilation of his shadowy activities. George H.W. Bush began his career as an oil salesman for Dresser Industries and went on to co-found his own oil company, Zapata Petroleum Corp. of Houston. This would spin off to Zapata Offshore and Pennzoil/Zapata. Bush was president of Zapata Oil from 1954 to 1964 and Zapata Offshore from 1964 to 1966.
Persistent reports indicate Bush was also an undercover CIA agent in the early 60’s, playing prominent roles in the “Bay of Pigs” invasion of Cuba (code name: Operation Zapata: see names of Bush-owned companies above) in 1961 and probably the Kennedy assassination in 1963. Newly-released FBI documents place Bush in Miami in 1960 and 1961, recruiting Cubans for the Bay of Pigs invasion. That’s how he met Felix Rodriguez, who became part of a special CIA shooter team. George Bush, Howard Hunt, Frank Sturgis, and Richard Nixon have all been traced to Dallas on Nov. 22, 1963, the day of Kennedy’s assassination. Hunt and Sturgis were among the 6 to 8 “derelicts” or “hobos” found in boxcars near railroad tracks behind the grassy knoll near Dealy Plaza. But they were never finger-printed or photographed in association with Kennedy’s murder.
Bush was elected to Congress in 1966, but lost a bid for the Senate in 1970. Even so, Nixon appointed him ambassador to the UN in 1971. Here, he took orders from Henry Kissinger (who earlier had worked for the Rockefeller’s Chase-Manhattan Bank) and became a Kissinger-clone. In 1973, Nixon appointed Bush as Republican National Chairman, where he seems to have played an important, behind-the-scenes role in the Watergate Scandal. Then, as Ambassador to China, Bush helped Kissinger oust Cambodian leader Lon Nol and install Pol Pot and the murderous Khmer Rouge regime. More than 2 of a total 7 million Cambodians perished in “the killing fields” of Pol Pot. This estimated slaughter 32% of Cambodia’s population between 1969 and 1979 is commonly considered the greatest genocide of the 20th century on a per capita basis.
In 1976, Bush became Director of the CIA. When elected Reagan’s Vice President in 1980, he put his family fortune into a blind trust under the control of his close friend, William Stamps Farish, III, who also had inherited much of the Auschwitz death camp fortune. (Farish’s grandfather was president of Standard Oil and controller of the global cartel between Standard Oil and the German Fritz Thysenn’s I.G. FarbenCorp. which operated the Auschwitz slave labor camps).
Some of Bush’s other notable, but generally under-reported, “accomplishments” include:
1) Along with friend, Wall Street banker and CIA director William Casey, he helped to orchestrate the “October Surprise,” in which the Iranian government was bribed or coerced into holding American hostages until after the 1980 election, thereby helping to ensure a Reagan/Bush victory over incumbent President Jimmy Carter (Stich, 2001, Honegger, 1989).
2) The failed assassination attempt on Ronald Reagan in 1981 occurred two months after
Reagan took office. It is probably no coincidence that the would-be assassin, John Hinkley, Jr., belongs to a Houston oil family with long-standing business ties to the Bushes. The Houston Post reported that on the day Reagan was shot, Scott Hinkley, brother of the would-be-assassin, had been invited to dine with Neil Bush, son of Vice President George H.W. Bush (Tarpley and Chaitkin, 1992). This story, briefly mentioned once by NBC’s anchor John Chancellor, has also been largely expunged from the public record.
3) Presiding over the Savings and Loan/HUD scandal, in which taxpayers were made to pay over $500 billion to bail out the failed S&L banks. Son Neil Bush, director of Silverado Savings and Loan in Denver, is reported to have personally profited by about $1 billion (Bowen, 1991; Brewton, 1992, Dowbenko, 2003).
4) As Vice President under Reagan and therefore Head of the National Security Council’s
Groups on Crisis Management, Drug Addiction, and Terrorism, Bush directed the Iran-Contra drug scandal, in which the secret government (comprised of ex-CIA and military intelligence operatives and businessmen) diverted profits from CIA-smuggled drugs into America and illegal arms sales to Iran to illegally fund the revolutionary Contras of Nicaragua and the Mujahadeen of Afghanistan. Under CIA protection, covert operators flew vast quantities of cocaine and heroin into the poor neighborhoods of America, again using drug profits to fund both sides of the illegal covert war in Nicaragua, etc. (See Webb, 1999; Dowbenko, 2003; Cockburn and St. Clair, 1998; Scott and Marshall, 1991)
5) Under Bush’s watch, the CIA spent over $3 billion dollars fomenting holy war (“jihad”) in Afghanistan by training and funding the Mujahadeen terrorists (including Osama bin Laden), as well as their networks, and training camps in Afghanistan. Thus, the Taliban, the Mujahadeen, and Osama bin Laden were established as CIA assets and remain so to this day. Not coincidentally, under CIA supervision during the 1980’s, Afghanistan became the world’s number one heroin producer and exporter. In 2000, the U.S.-supported Taliban government banned the production of poppies (heroin). However, after the 2001 invasion of Afghanistan and installation of a new American puppet government, Afghanistan is again the world’s number one heroin producer.
6) Under G.H.W. Bush’s supervision of the first “War on Terrorism,” hundreds of thousands of
innocent civilians were killed, tortured and disappeared in El Salvador, Guatemala, and Nicaragua. Another million or so each, again mostly civilians, were killed in U.S.-supported and funded wars in Afghanistan and Iraq/Iran.
7) According to ABC’s newsman Ted Koppel, “George Bush, operating largely behind the scenes throughout the 1980’s, initiated and supported much of the financing, intelligence, and military help that built Saddam’s Iraq into the aggressive power that the United States ultimately had to destroy…..” New York Times columnist William Safire stated further: “Iraq-gate is uniquely horrendous: a scandal about the systematic abuse of power by misguided leaders of three democratic nations (the U.S., Britain, and Italy) to secretly finance the arms buildup of a dictator.”
8) Presiding over invasions into both Panama and Iraq in which some 8000 Panamanians and
over 280,000 Iraqis were killed. The U.S had illegally sold tens of billions of dollars worth of weapons, including chemical and biological weapons, to Saddam Hussein during the 1980’s to help Iraq become the strongest regional power in the Middle East. Evidence indicates that Saddam was more or less set up for the Gulf War when U.S. Ambassador Glaspie told him the U.S. had no interest in his border dispute with Kuwait. I.e., it was a trap.
9) Journalist John Loftus reported that George H.W. Bush had 41 ex-Nazis working for him in the White House during his presidency.
There were also perks for this hardworking politician/businessman. According to retired Brigadier General Bowen (The Immaculate Deception: The Bush Crime Family Exposed), Bush and Saddam Hussein split about $250 billion in Persian Gulf oil kickbacks during the 1980’s, which were laundered through the scandal-ridden, CIA-proprietary Bank of Credit and Commerce International (BCCI).
In 1988, Project Censored awarded the honor of “Top Censored Story” to the story of George H.W. Bush, revealing “how the major mass media ignored, overlooked or under-covered at least ten critical stories reported in America’s alternative press that raised serious questions about the Republican candidate, George Bush, dating from his reported role as a CIA “asset” in 1963 to his Presidential campaign’s connection with a network of anti-Semites with Nazi and fascist affiliations in 1988.”
Today, Bush Sr. is a highly paid consultant for the Carlyle Group, America’s 11th largest military contractor. In this capacity, he went to Saudi Arabia to meet with the Bin Laden family and the Saudi Royal family in 1998 and 2000. The Carlyle Group is reaping billions of dollars in profits from Jr. Bush’s “War on Terror.” Thus, just as his father and grandfather profiteered through their business partnerships with Fritz Thyssen during World War II, G.H.W. Bush has profiteered handsomely from his insider connections with Saddam Hussein, the Bin Ladens, the House of Saud, and various other corrupt leaders in the current phony “War on Terror.”
George Walker Bush (1946-present, Yale, Skull & Bones, class of 1968).
Prior to becoming governor of Texas, George W. Bush founded and ran the Harken Energy Corp., which was financed in part by the Bin Laden family of Saudia Arabia. Harken never found any oil in Texas, but before it went bankrupt, Bush sold all his stocks, illegally profiting by millions through his insider knowledge. As governor of Texas, Bush presided over the execution of 152 inmates, including mentally retarded prisoners- more than any other governor in US history. He did, however, pardon one death row prisoner, a serial killer. As governor, he changed pollution laws to benefit energy companies and thereby made Texas the most polluted state in the nation.
After losing the popular election in 2000 by over 500,000 votes, George W. gained the White House when the politically biased Supreme Court ruled 5-4 that the Florida Supreme Court should be over-ruled and the re-counting of tens of thousands of disputed ballots should be disallowed. Major Florida newspapers later concluded that Al Gore won Florida and the Presidency. Some of this “selected” president’s most notable “accomplishments” include:
1) Dissolving more international treaties than any president in U.S. history, including the Anti-Ballistic Missile Treaty, the Biological Weapons Convention, the Comprehensive Nuclear Test Ban Treaty, the Kyoto Protocol on Global Warming, the 1989 Convention on the Rights of the Child, and the Rome Treaty to Create an International Court. All this, he accomplished before 9/11/01.
2) Presiding over the secret government’s execution and cover-up of the killing of about 3,000 people at the World Trade Center and Pentagon on September 11, 2001 (see many references below).
3) Presiding over the greatest rollback of Constitutional civil liberties in the history of the country. The U.S.A. Patriot Act and Homeland Security Acts, passed in 2001 and 2002, respectively, along with the pending Patriot II Act eliminate or threaten Constitutional rights guaranteed in our 1st, 4th, 5th, 6th, 7th, 13th, 14th, and 15th Amendments.
4) Ordering the high-tech massacre of many thousands of innocent and defenseless Afghani and Iraqi civilians (now numbering over 650,000) who posed no security threat to the U.S. whatsoever and had no part in the crimes of 9/11. The primary resources thereby controlled, of course, are oil in Iraq, an oil pipeline in Afghanistan and opium/heroin in Afghanistan. The Bush administration’s perpetual “War on Terror” aka “Long War” is clearly a response to demands from the major oil companies and Council on Foreign Relations. The strategy, as outlined by the Project for a New American Century (PNAC), is American domination of the entire world through conquest and control of Eurasia, with it’s ¾ of the world’s population and ¾ of the world’s resources. In particular the plan calls for controlling the world’s last, greatest fossil fuel reserves in the Persian Gulf and Caspian Basin as well as rolling back the social contract and civil liberties in the United States, thereby implementing a repressive police state at home.
5) Launching a “pre-emptive” war against Iraq in violation of international law (including the
UN Charter, the Nuremburg Tribunal and the Geneva Accords) on the basis of entirely false pretexts. Representative Henry Waxman (D-CA) carefully documents 237 lies told by the Bush administration in their efforts to convince the American people, the Congress, and the UN to wage war against Iraq. Interestingly, this document is no longer on the web. The pretexts used to justify the invasion were all lies, namely that: 1) Iraq posed an “immanent threat” based on its possession of weapons of mass destruction, including biological, chemical and nuclear weapons, and 2) Saddam Hussein was partly responsible for 9/11 and had long-term contacts with al-Qaeda and Osama bin Laden. Actually, the CIA had publicly denied these assertions prior to the invasion.
6) Conducting an endless “War on Terror” (i.e., military conquest abroad and imposition of a police state at home for the benefit of international corporations). In fact, all evidence shows that the “War on Terror,” like the staged 9/11 “war pretext incident” used to justify it, is a fraud. Rather, anyone willing to look at the objective evidence must conclude that the U.S. government (with it’s CIA, School of Americas, etc.) is greatest purveyor of terror in the world. This phony war has also been used to justified massive spying on Americans as well as torture throughout the world. And of course, it has also been used to justify massive new infusions of American tax dollars to defense contractors.
7) At the time of the Bush Administration’s bombing of Afghanistan, oil and gas reserves in the nearby Caspian Basin were estimated at $5 trillion, with many major U.S. corporations, including Unocal, ExxonMobil, Chevron, Pennzoil, BP-Amoco, Enron and VP Dick Cheney’s Halliburton, standing to make a “killing” off the building of an oil pipeline through Afghanistan. Enron, the largest contributor to the Bush-Cheney campaign conducted the feasibility study for the $2.5 billion trans-Caspian pipeline. In addition, the estimated value of heroin revenues to U.S. banks once a U.S. puppet government was installed (under former UNOCAL consultant Hammed Karzai) is estimated at upwards of $300 billion.
8) Presiding over the loss, mostly by outsourcing, of some 2.5 million American jobs in his first two years in office.
9) Emptying the U.S. Treasury by granting trillions of dollars worth of tax cuts to the richest 2% of Americans. Bush thereby squandered the $7 trillion surplus he inherited from Clinton and moved the total federal deficit to exceed a record $8 trillion, mainly by granting gigantic tax cuts to the rich and making huge increases in military spending.
10) Presiding over one of the greatest Wall Street scandals in U.S. history (Enron, Worldcom, and other corporations) and the related 2001 stock market crashes (with the concurrent loss of $7 trillion of investor’s wealth).
11) Presiding over the largest energy crisis in U.S. history. When Enron and a host of other energy corporations exploited California’s de-regulated energy market by gaming the system and creating artificial energy shortages, thereby bilking the citizens of California of tens of billions of dollars, Bush and FERC (Federal Energy Regulatory Commission) refused to interfere.
12) In concert with the Republican Congress, systematically destroying the social contract that has been in effect since FDR initiated the New Deal, through de-funding and further crippling education, social services, health care programs, etc.
13) Amassing the worst environmental record of any U.S. president in history, through systematically weakening and rolling back all major environmental laws and regulations.
The bottom line is that the Bush administration has utilized 9/11, which was orchestrated and covered up by the corporate/government/media complex, as a pretext for imposing an imperial dictatorship and police state on the United States and imposing endless war abroad.
Conclusion
Four generations of Bushes, along with a relatively small group of international investment bankers and corporate leaders, have been instrumental in creating and profiting from extremely costly and destructive wars. They have done this by financing a series of great enemies (from the Soviets and the Nazis, to Ho Chi Minh, Saddam Hussein, and Osama bin Laden). They have reaped tremendous profits from the wars they orchestrated. This transnational, fascist, financial cartel has operated as a de facto secret government to manipulate U.S. foreign policy, as well that of other countries, including those of our official “enemies.” The “Great Plan” which these individuals have been working so hard to usher in calls for the destruction of the United States of America as a sovereign nation and the establishment of a “New World Order”, which would effectively be a “Fourth Reich of the Rich.” Thus, the Bushes and the other members of this elite, international, fascist cartel are all guilty of the highest crimes against the American people and humanity. The Bushes, as a key family in this criminal effort, have personally profited from all the principle businesses of empire, including banking (usury), energy (oil), and sales of illicit drugs and weapons/intelligence.
Three generations of Bushes have been involved in America’s most elite secret society, Yale’s Skull and Bones, which many believe to be a Satanic order. Historian Anthony Sutton details the history of Skull and Bones in his seminal work, America’s Secret Establishment, An Introduction to the Order of Skull and Bones. The Skull and Bones secret society was established at Yale in 1832 as an American chapter (Chapter 322) of a German secret society, called The Illuminati. Both these secret societies also call themselves “The Order of Death.” The money used to establish Skull and Bones came from 19th-century America’s largest criminal syndicate, Russell and Company, which amassed a fortune through running opium from Turkey to China on Yankee clipper ships. Thus, Skull and Bones, was always a secret society with ties to various other secret societies, including the Order of the Illuminati, the Masons, the (British “Round Table”) Group, etc. Each of these and no doubt many other secret societies shares a common goal: to bring about a New World Order,” “a planned order with heavily restricted individual freedom without Constitutional protection, without national boundaries, or cultural distinction” (Sutton, 1982).
The Order utilizes the Hegelian dialectic of creating and directing opposite forces (“thesis-antithesis”) in order to foment conflict. These conflicts are used to both generate great profits for themselves, destroy sovereign nations, create mass destruction and death for others, and to move society toward their desired “synthesis”, i.e., the New World Order, which of course they intend to rule. According to Sutton, between 1833 and 1983 about 20 to 30 old East Coast American families came to dominate the Order of Skull and Bones.
The United Nations has been designed to be the fundamental governance structure of their New World Order once the nations of the world have been destroyed.
A brief look at statistics indicates that these “Orders of Death” have been quite successful in bringing about tremendous death and destruction to the world.
Rough tally of human beings killed by the New World Order so far:
World War I 37+ million
World War II 62+ million
Korean War 3 million
Southeast Asian Wars (Vietnam, Laos and Cambodia) 6 million
Iraq War (1991-2004) about 3 million
Afghanistan Wars of 1980s and 2001 over 1 million
Other miscellaneous CIA and “Third World” Wars over 5 million
Russians killed in one decade in WWI
and under Lenin and Stalin 75 million
Chinese killed by Mao Tse Tung 100 milllion
Rough total over 289 million
It seems obvious that unless and until the Bush dynasty and their NWO associates are exposed and brought to justice, they will continue to orchestrate and profit from future wars, to the detriment of all humanity, all other species, and entire global ecosystem.
Addendum
Investigative journalist John Buchanan was recently interviewed on John Syzmanski’s talk show. In these interviews, Buchanan described what has happened in his own life since he published his first article on the Bush-Nazi connection in 2003. His explains that the sources for this story were hundreds of pages of government documents he examined and Xeroxed from the National Archives and U.S. Library of Congress. Although he tried to turn these documents over the major media outlets such as CNN and the major TV networks, the New York Times, the L.A. Times, and the Washington Post, etc., nobody was interested in picking up the story.
So in order to get this crucial story out, Buchanan ran for President in 2004, registering as a Republican so that he could run against Bush in the New Hampshire primary. On February 4, 2004, Buchanan was kidnapped by two alleged secret service agents, who he believes were actually thugs working for Karl Rove. When he later attempted to speak at the National Press Club, Buchanan was threatened and harassed and on Feb. 10, he was arrested again on phony charges, including 14 counts of felony-aggravated stalking of someone who was never named or produced. Nonetheless, his imprisonment was dragged out for 7 months, during which time he was threatened with being locked up for 70 years. He was given a public defense lawyer who informed him 10 minutes before his trial that he should plead guilty because she had misplaced all his defense files. Even so, Buchanan was rescued by a legitimate lawyer who came forward at the last minute and his case was thrown out of court for lack of substance. The intimidation and harassment continued, however, forcing Buchanan to move to 50 different cities in a single year. However, even though he has been harassed, intimidated, and arrested on phony charges, Buchanan continues his courageous efforts to expose the massive and systemic corruption that infects our body politic.
In his new book, Fixing America; Breaking the Stranglehold of Corporate Rule, Big Media, and the Religious Right, Buchanan outlines several essential steps for reclaiming our democracy and our country:
1) End corporate rule by a) outlawing corporate lobbying, and b) overturning the 1886 Supreme Court ruling (Santa Clara County v. Southern Pacific Railroad) that illegally granted corporations the rights of personhood.
2) Dismante the military-industrial complex by taking the profit out of war.
3) Dismantle the media monopolies by reforming the media and reinstating the Fairness Doctrine.
To these sensible solutions I would like to add several other recommendations:
4) Withdraw from the World Trade Organization (WTO) and all international trade agreements such as the North American Free Trade Agreement (NAFTA) and the General Agreement on Trade and Tarriffs (GATT). These trade rules favor the interests of large, multinational corporations over those of people and the environment.
5) Withdraw from the United Nations, which is the Trojan Horse of the New World Order.
6) Repeal the Federal Reserve Act of 1913 so that the U.S. government, not private international bankers, is empowered to issue money, as provided for in the Constitution.
7) Require that all secret societies be disbanded. These would include the Masons, Skull and Bones, the Bilderberger Group, and many more. Secret societies hide criminal activities.
8) Bring the Bush family and other international war criminals to justice.
But what can we do now? We can begin by informing ourselves, breaking the conspiracy of silence (and resulting ignorance), and speaking and sharing the truth with others.
References
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Buchanan, J., 2003, Bush-Nazi link confirmed, The New Hampsire Gazette, Vol. 248, No. 1, 10/03/03.
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Videos
Martial Law: 9/11 and the Rise of the Police State: Alex Jones, 2005,, http://www.infowars.com, Aftermath: Unanswered Questions from 9-11, Guerilla News Network, 2003, http://www.gnn.tv
Brotherhood of Darkness, Dr. Stan Monteith, 1997, http://www.radioliberty.com
International Inquiry into 9/11, Phase One Highlights, 2004, http://www.globaloutlook.ca
Painful Deceptions: An Analysis of the September 11th Attack, Eric Hufschmid,
http://www.dpgear.com
The Best Enemies Money Can Buy, Interview with Professor Anthony C. Sutton, 1980,
http://www.Radioliberty.com
The Great Deception: The War on Terrorism, An Alternative View, 2002, http://www.visiontv.ca
The Great Conspiracy: International Citizen’s Inquiry into 9/11, 2004: Barry Zwicker,
http://www.globaloutlook.ca.
The Money Masters, How International Bankers Gained Control of America, 1998,
http://www.themoneymasters.com
Truth and Lies of 9-11, Michael Ruppert, 2001, http://www.fromthewilderness.com
War and Globalization: The Truth Behind September 11, Global Outlook, M.
Chossudovsky, 2003, http://www.globaloutlook.ca
9-11 Failure, Ted Gunderson (career FBI agent), http://www.tedgunderson.com
911 In Plane Site, The Power Hour, David Von Kleist, 2004. http://www.thepowerhour.com
Web sites and web site articles
The Bush Empire: How four generations of arms, oil, fascism, and U.S. govt. defiance made America’s first family, http://www.newtopiamagazine.net/issues/v2issue3/features/bushempire.shtml
http://www.fromthewilderness.com
http://www.spitfirelist.com
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