By David Michael Green
24/03/08 “ICH” — – Watching George W. Bush in operation these last couple of weeks is like having an out-of-body experience. On acid. During a nightmare. In a different galaxy.

As he presides over the latest disaster of his administration, (No, it’s not a terrorist attack - that was 2001! No, it’s not a catastrophic war - that was 2003! No, it’s not a drowning city - that was 2005! This one is an economic meltdown, ladies and gentlemen!) bringing to it the same blithe disengagement with which he’s attended the previous ones, you cannot but stop and gaze in stark, comedic awe, realizing that the most powerful polity that ever existed on the planet twice picked this imbecilic buffoon as its leader, from among 300 million other choices. Seeing him clown with the Washington press corps yet once again - and seeing them fawn over him, laugh in all the right places, and give him a standing ovation, also yet once again - is the equivalent of having all your logic circuits blown simultaneously. Truly, the universe has a twisted and deeply ironic sense of humor. Monty Python is about as funny - and as stiff - as Dick Nixon, by comparison.

It’s simply incomprehensible. It’s not so astonishing, of course, that a country could have a bad leader whose aims are nefarious on the occasions when they are competent enough to rise to that level of intentionality. Plenty of countries have managed that feat, especially when - as was the case with Bush - every sort of scam is employed to steal power, and then pure corruption and intimidation used to keep it. History is quite littered indeed with bimbos and petty criminals of this caliber. What is harder to explain is how a country of such remarkable achievements in other domains, and with the capacity to choose, and in the twenty-first century no less, allows this to happen. And then stands by silently watching for eight years as the tragedy unfolds before their eyes, all 600 million of them, hardly any of them even blinking.

And so, remarkably, as we mark now the fifth anniversary of the very most tragic of these debacles, the most destructive and the most shameful - because it was the most avoidable - the sad question of the hour is less what is to be done about it than will anyone even notice? Not likely. And not for very long if they do. And, most of all, definitely not enough so as to take meaningful action to bring it to an end, even at this absurdly late date.

But let’s give credit where credit is due. This is precisely by design. This is exactly the outcome intended by the greatest propaganda-promulgating regime since Hermann Göring set fire to the Reichstag. It was Göring himself who famously reminded us that, “Naturally the common people don’t want war; neither in Russia, nor in England, nor in America, nor in Germany. That is understood. But after all, it is the leaders of the country who determine policy, and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. …Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is to tell them they are being attacked, and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same in any country.”

Sure worked in Germany. And it worked even better here, because these guys were so absolutely careful to avoid exposing the costs of their war to those who could demand its end. For example, by some counts, there are more mercenaries fighting in Iraq, at extremely high cost, than there are US military personnel. There’s only one reason for that. If the administration implemented the draft that is actually necessary to supply this war with adequate personnel, the public would end both the war and the careers of its sponsors, post haste. For the same reason, this is the first American war ever which has not only not been accompanied by a tax increase, but has in fact witnessed a tax cut. Likewise - to ‘preserve the dignity’ of the dead, of course - you are no longer permitted to see photographs of flag-draped caskets returning to Dover Air Force Base. And the press are embedded with forces who are also responsible for their safety, which is just a fancy way of saying that they’re so censored they make Pravda look good. It is, in short, quite easy for average Americans to get through their day, every day, without the war impacting their lives in any visible respect, and that is precisely what hundreds of millions of us are doing, week in and week out. All of this is courtesy of an administration that couldn’t run a governmental program to save its own life - but, boy, they sure as hell know how to market stuff.

So perhaps there is no excuse, after all, for my naïveté, for my credulousness in wanting to believe that twenty-first century America might be different enough not to follow the smallest of men - a personal failure and a 40-year drunkard who, unlike Herr Göring’s führer, couldn’t even claim charismatic eloquence as the sole virtue accounting for his power - to follow such a petulant child off the deep end of a completely unjustified war. Perhaps Americans and American democracy are no wiser or better than any other people or political system, even today, even after the worst century of warfare in human history, even after the mirror-image experience of Vietnam. Maybe the experience of Iraq hasn’t even changed them, and they’ll once again follow like lemmings when led to war by pathetic creatures such as George W. Bush, fifty years from now. Or five years from now. Or even five months from now, as the creature d.b.a Dick Cheney tees up a confrontation with Iran in order keep Democrats out of the White House, and himself out of jail.

Sure, presidents and prime ministers, no less than kings and führers, will lie their countries into war. Sure, they’re very good at it, and getting better all the time. Definitely a frightened people are more prone to stupidity than those lucky enough to contemplate in the luxury of quiet safety. Without question, it helps an awful lot - if you’re just Joe Sixpack, out there trying to figure out international politics in-between a long day’s work, helping the kids with their algebra homework, and the Yankee game - to have a checking-and-balancing Congress, a responsible opposition party, and/or a critical media helping you to understand the issues accurately, rather than gleefully capitulating to executive power at every opportunity. But that by no means excuses a public who were fundamentally far more lazy than they were ignorant or confused. And lazy is one thing when you’re talking about a highway bill or even national healthcare. But when it comes to war, lazy is murder.

I don’t think it took a giant leap of logic to understand that this war was bogus from the beginning, even based on what was known at the time. The war was sold on three basic arguments, each of which could have been easily dismantled even then with a little thoughtful consideration.

The first was WMD, of course. So, okay, perhaps your average American didn’t know that the United States government (including many in the current administration) had actually once supplied Saddam Hussein the material to make these evil weapons, and had covered for him at the UN and elsewhere when he used them. Although this historical myopia is very much part of the problem, of course. Americans are so ready to denounce supposed enemies without doing the slightest bit of historical homework to become acquainted with the slightest bit of history to make sense of the situation. If you don’t know that the US actually canceled elections and helped assassinate a ‘democratic’ president in Vietnam, of course you’re going to support war there. If you don’t know that the US toppled a democratically elected Iranian government to steal the country’s oil and then installed a brutal dictatorship in its place, of course you’re going to be angry at US diplomats being held hostage. And if you don’t bother to learn the true history of Iraq, perhaps you’ll find the WMD argument quite persuasive.

But, in fact, even without the historical background information, it never made a damn bit of sense. Iraq had been pulverized by war and sanctions for over twenty years prior to 2003. Two-thirds of its airspace was controlled by foreign militaries. Its northern region was effectively autonomous, a separate country in all but name. It was in no position to attack anyone. Moreover, it hadn’t attacked anyone - not the United States or anyone else. Indeed, it hadn’t even threatened to attack anyone. Shouldn’t that be part of the calculation in determining whether to go to war? Do we really want to give carte blanche to any dry (we hope) drunkard in the White House who today wants to bomb Norway (”They’re stealing our fish!”), or tomorrow wants to invade Burkina Faso (”They dress funny!”)?

Too often, of course, the historical answer to that question has unfortunately been yes, we apparently do want to do that. But let’s consider the massive warning signs in this case, even apart from what could be known about the administration’s lies at the time. Shouldn’t it have been enormously problematic that Iraq had nothing to do with 9/11? Even the administration never had the gall to make that claim. Wasn’t it transparent to anyone that America had plenty on its plate already in dealing with the enemy we were told we had, rather than adding a new adventure to the pile? And why wasn’t this thing selling throughout the world, or even amongst the traitorous half of the Democratic Party in Congress? Remember how everyone at home and abroad - yes, including the French - supported the US and its military actions in Afghanistan only twelve months before? Shouldn’t it have been a warning sign of epic proportions that these same folks wouldn’t countenance a war in Iraq just a year later? That the administration had to yank its Security Council resolution off the table, even after breaking both the arms of every member-state around the horseshoe table, because it could still only get Britain and two other patsies to lie down for this outrage, out of a total of fifteen, and nine needed to pass?

And how about the logic of that whole WMD thing, after all? Did anyone ever stop to think that several dozen other countries have WMD, including some that are pretty hostile to the United States? Did anyone not remember that the Soviets once had nearly 25,000 strategic nuclear warheads pointed in our direction? What ever happened to the logic of deterrence? To mutually assured destruction? And what about the mad rush to go to war, preempting the UN weapons inspectors from doing their job? Are we really okay with the notion that instead of ‘risking’ whatever would have been at risk by giving the inspectors another six or eight weeks to finish up, we’ve instead bought this devastating war down on our own heads for no reason at all? If you stop to think about it, it makes you shudder. Which I guess explains why not too many people stop to think about it.

The second rationale for war was the bogus linkage between Iraq and al Qaeda. The extent and ramifications of this lie are so significant that the White House, it was just recently revealed, squelched a Pentagon report showing no connections between the two. Is this sort of censorship what the Bush administration means by democracy, the remedy it’s always preaching for the rest of the world but never practicing at home? Anyhow, remember how definitive Cheney and the rest were of this supposed al Qaeda linkage, based pretty much entirely on a meeting between two operatives in Prague which likely didn’t even take place? Now we find out that the Department of Defense has spent the last five years combing through a mere 600,000 documents, and found zero evidence of such a link. Not some evidence. Not mixed evidence. Zero evidence.

But you could tell even then that they had almost nothing to go on. Christ, the United States government itself has had far more interactions with al Qaeda - including helping to build the beast from its inception - than one disputed meeting between two spooks in Prague. Doesn’t it seem that a decision to go to war should hang on more than a single thread like that, let alone a narrow and tattered one? And how many of us are down for attacking any country right now that might have had a single meeting between a low-level functionary and an al Qaeda representative?

Then, once again, there’s the matter of that whole pesky logic thing. Pay attention now, class. What do we know about al Qaeda? They are devoted to religious war - jihad - in the name of replacing governments across the Middle East with theocracies, or better yet recreating the old Islamic caliphate stretching across the region, right? Right. Now if this vision could have more thoroughly contradicted Saddam’s agenda for a secular dictatorship seeking regional domination on his own Stalinist terms, it is hard to imagine how. You don’t need a PhD in international politics to see that these two actors were about as antithetical to each other as the Republican Party is to integrity. Then again, even having one doesn’t necessarily mean you have the foggiest clue about what’s going on in the world, as Condoleezza Rice clearly demonstrated by brilliantly failing to anticipate that Hamas would win elections she had pushed the Palestinians to hold. For someone serving as secretary of state, this idiocy is the rough equivalent of anyone else being shocked when a dropped bowling ball hurtles to the ground, because they’re not yet fully acquainted with the concept of gravity. Evidently, in Texas this is what they call ‘credentials’.

Lastly, Bush’s little adventure in Mesopotamia was supposed to bring democracy to the region, remember? Never mind, of course, that there has long already been a fairly thriving Islamic democracy, right next door. Oops! It’s called Turkey. And let’s not forget Mr. Bush’s long-standing devotion to democracy, as he amply demonstrated in the American election of 2000. Or as he has continually manifested by bravely and publicly pushing the Chinese to democratize. Just as he has with his pals in Egypt and especially the family friends running Saudi Arabia, the recipient of more American foreign aid than nearly any other country in all the world. And let’s not forget the several hundred thousand perished souls from Darfur, whom this great champion of human rights has fought valiantly to keep alive by… by… well, I’m sure he’s done a lot behind the scenes. Sure is gonna be hard for them to exercise their precious right to vote from the next world, eh?

What is clear is that the reasons given to the American public for the war in Iraq were entirely bogus. This much is already on the public record, from the Downing Street Memos and beyond. Even if we can only speculate on why they actually invaded - oil, glory, personal insecurity, Israel, clobbering Democrats, Middle Eastern dominance - what we know for sure is that the rationale fed to the public was a knowingly fabricated pack of scummy lies. It wasn’t about WMD, it wasn’t about links to al Qaeda, and it sure wasn’t about democracy.

But even if we can’t identify the true motivations within the administration for invading, we can surely begin to see the costs. Probably a million Iraqi civilians are dead. Over four million are displaced and now living as refugees. Together, these equal a staggering one-fifth of the population of the entire country. Meanwhile, the remaining four-fifths are living in squalor, fear and a psychological damage so extensive that it is hard to grasp. America has lost 4,000 soldiers, with perhaps another 30,000 gravely wounded. Hundreds of thousands more will be scarred for life from their experiences in the hell of Mr. Bush’s war. Our military is broken and incapable of responding to a real emergency, at home or abroad. Our economy will sustain a blow of perhaps three trillion dollars before it is all said and done. Our reputation in the world is in the toilet. We have turned the Iranian theocracy into a regional hegemon. And we have massively proliferated our own enemies within the Islamic community. That would be one hell of an expensive war, even if the reasons given for it were legitimate. It is nearly incomprehensible considering that they were not.

This week, a man died in France, the last surviving veteran of World War I, a devastating conflict that - even a century later - nobody can still really explain to this day. Meanwhile, Dick Cheney, John McCain and Joe “Make-me-SecDef-Mac-oh-please-pick-me-Mac” Lieberman parachuted into Iraq for photo-ops to sustain the war they don’t have the integrity or the guts to abandon. Never mind that their visits had to be by surprise, and that they stroll around the Green Zone wearing armored vests - surely the most powerful measures of the war’s success imaginable. Of course, to be fair, we’ve only been at it for five years now. Perhaps after the remaining ninety-five on McCain’s agenda go by, Americans will finally be safe enough in Iraq to announce their visits in advance.

So, Happy Anniversary, America! You put these people in charge, and then - after seeing in explicit in detail what they were capable of - you actually did it again in 2004! You stood by in silence watching the devastation wrought upon an innocent people, produced in your name and financed by your tax dollars. And you continue to do just that again, now in Year Six.

Brilliant! Put on your party hat, America. You won the prize.

You’ve successfully answered the musical question, “How lethally stupid can one country be?”

David Michael Green is a professor of political science at Hofstra University in New York. He is delighted to receive readers’ reactions to his articles (dmg@regressiveantidote.net), but regrets that time constraints do not always allow him to respond.

By Michael Webster: Investigative Reporter:

As reported by this writer recently a special U.S. Military Task Force has been created to protect our southern border with Mexico . Members of this task force are reported to be preparing to secure our southern border with Mexico by responding with specially trained fast response U.S. Army task force military units. These forces are already in place according to eye witness, with the heart of the power being concentrated in El Paso and Southern New Mexico with a far reaching responsibility from East Texas to Southern California . They are being staged and immediately available as emergency  "on call" units for use against terrorist threats on the nation’s border and local disasters, said Gen. Victor E. Renuart Jr., commander of United States Northern Command and the North American Aerospace Defense Commander.

Many Americans are applauding this action as a good move to protect our borders with Mexico . Hopping this action will prevent illegal aliens, human and drug smugglers, and terrorist from entering the U.S. undetected. They feel, if true this is something that is needed and way over due. One American who wants to remain nameless said You can’t fault people for questioning the motives of George W. Bush. After all, he’s done more than any other President to earn the distrust of the American people and demonstrate that he is a traitor.
If the military is on the border to stop illegal border crosser’s, good. Let George W. Bush and Co. announce it loud and clear. Otherwise, his motives are questionable at best.
Others Americans are afraid that this is just subterfuge. That the real intent of this administration is to suppress decent, control the masses and some even fear it is designed by Bush to delay the elections in the fall. Invade Iran imprison many Americans and designed for him to remain President for as long as he can.
Before President Bush past presidents have been reluctant to use U.S. troops within the borders of the U.S. They have always been leery of the image of armed military troops patrolling American cities or the U.S border with Mexico . Under the Civil War-era Posse Comitatus Act, federal troops are prohibited from performing law enforcement actions, such as making arrests, seizing property or searching people. No one seems to know how this would apply to troops patrolling the border.
In a stealth maneuver, President Bush has signed into law a provision which, according to Senator Patrick Leahy (D-Vermont), will actually encourage the President to declare federal martial law (1). It does so by revising the Insurrection Act, a set of laws that limits the President’s ability to deploy troops within the United States . The Insurrection Act (10 U.S.C.331 -335) has historically, along with the Posse Comitatus Act (18 U.S.C.1385), helped to enforce strict prohibitions on military involvement in domestic law enforcement. With one cloaked swipe of his pen, Bush has undo those prohibitions.

Public Law 109-364, or the "John Warner Defense Authorization Act of 2007" (H.R.5122), which was signed by the commander in chief on October 17th, 2006, in a private Oval Office ceremony, allows the President to declare a "public emergency" and station troops anywhere in America and take control of state-based National Guard units without the consent of the governor or local authorities, in order to "suppress public disorder."

Section 333, states that in "Major public emergencies; interference with State and Federal law"  "the President may employ the armed forces, including the National Guard in Federal service, to restore public order and enforce the laws of the United States when, as a result of a natural disaster, epidemic, or other serious public health emergency, terrorist attack or incident, or other condition in any State or possession of the United States, the President determines that domestic violence has occurred to such an extent that the constituted authorities of the State or possession are incapable of ("refuse" or "fail" in) maintaining public order, "in order to suppress, in any State, any insurrection, domestic violence, unlawful combination, or conspiracy."
Further authority has been given the Pentagon by the U.S. Congress voting 252-171 to allow the Pentagon to assign military personnel under certain circumstances to help the Homeland Security Department with border security. The House added the provision to a larger military measure.
In an article written by Frank Morales in the late fall of 2006 pointed out that the current President (Bush), "enforcement of the laws to restore public order" means to commandeer guardsmen from any state, over the objections of local governmental, military and local police entities; ship them off to another state; conscript them in a law enforcement mode; and set them loose against "disorderly" citizenry - protesters, possibly, or those who object to forced vaccinations and quarantines in the event of a bio-terror event.
The law also facilitates militarized police round-ups and detention of protesters, so called "illegal aliens," "potential terrorists" and other "undesirables" for detention in facilities already contracted for and under construction by Halliburton. That’s right. Under the cover of a trumped-up "immigration emergency" and the frenzied militarization of the southern border, detention camps are being constructed right under our noses, camps designed for anyone who resists the foreign and domestic agenda of the Bush administration.
An article on "recent contract awards" in a recent issue of the slick, insider "Journal of Counterterrorism & Homeland Security International" reported that "global engineering and technical services powerhouse KBR [Kellog, Brown & Root] announced in January 2006 that its Government and Infrastructure division was awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) contract to support U.S. Immigration and Customs Enforcement (ICE) facilities in the event of an emergency." "With a maximum total value of $385 million over a five year term," the report notes, "the contract is to be executed by the U.S. Army Corps of Engineers," "for establishing temporary detention and processing capabilities to augment existing ICE Detention and Removal Operations (DRO) - in the event of an emergency influx of immigrants into the U.S., or to support the rapid development of new programs." The report points out that "KBR is the engineering and construction subsidiary of Halliburton." (3) So, in addition to authorizing another $532.8 billion for the Pentagon, including a $70-billion "supplemental provision" which covers the cost of the ongoing, mad military maneuvers in Iraq, Afghanistan, and other places, the new law, signed by the president in a private White House ceremony, further collapses the historic divide between the police and the military: a tell-tale sign of a rapidly consolidating police state in America, all accomplished amidst ongoing U.S. imperial pretensions of global domination, sold to an "emergency managed" and seemingly willfully gullible public as a "global war on terrorism."
Make no mistake about it: the de-facto repeal of the Posse Comitatus Act (PCA) is an ominous assault on American democratic tradition and jurisprudence. The 1878 Act, which reads, "Whoever, except in cases and under circumstances expressly authorized by the Constitution or Act of Congress, willfully uses any part of the Army or Air Force as a posse Comitatus or otherwise to execute the laws shall be fined under this title or imprisoned not more than two years, or both," is the only U.S. criminal statute that outlaws military operations directed against the American people under the cover of ‘law enforcement.’ As such, it has been the best protection we’ve had against the power-hungry intentions of an unscrupulous and reckless executive, an executive intent on using force to enforce its will.
Mr. Morales reported that many feel that the president dealt posse Comitatus, along with American democracy, a near fatal blow. Consequently, it will take an aroused citizenry to undo the damage wrought by this horrendous act, part and parcel, as we have seen, of a long train of abuses and outrages perpetrated by this authoritarian administration.
Despite the unprecedented and shocking nature of this act, there has been no outcry in the American media, no reaction from the current presidential candidates and little reaction from our elected officials in Congress. On September 19th, a lone Senator Patrick Leahy (D-Vermont) noted that 2007’s Defense Authorization Act contained a "widely opposed provision to allow the President more control over the National Guard [adopting] changes to the Insurrection Act, which will make it easier for this or any future President to use the military to restore domestic order WITHOUT the consent of the nation’s governors."
Senator Leahy went on to stress that, "we certainly do not need to make it easier for Presidents to declare martial law. Invoking the Insurrection Act and using the military for law enforcement activities goes against some of the central tenets of our democracy. One can easily envision governors and mayors in charge of an emergency having to constantly look over their shoulders while someone who has never visited their communities gives the orders."
A few weeks later, on the 29th of September, Leahy entered into the Congressional Record that he had "grave reservations about certain provisions of the fiscal Year 2007 Defense Authorization Bill Conference Report," the language of which, he said, "subverts solid, longstanding posse Comitatus statutes that limit the military’s involvement in law enforcement, thereby making it easier for the President to declare martial law." This had been "slipped in," Leahy said, "as a rider with little study," while "other congressional committees with jurisdiction over these matters had no chance to comment, let alone hold hearings on, these proposals."
In a telling bit of understatement, the Senator from Vermont noted that "the implications of changing the (Posse Comitatus) Act are enormous". "There is good reason," he said, "for the constructive friction in existing law when it comes to martial law declarations. Using the military for law enforcement goes against one of the founding tenets of our democracy. We fail our Constitution, neglecting the rights of the States, when we make it easier for the President to declare martial law and trample on local and state sovereignty."
Senator Leahy’s final ruminations: "Since hearing word a couple of weeks ago that this outcome was likely, I have wondered how Congress could have gotten to this point. It seems the changes to the Insurrection Act have survived the Conference because the Pentagon and the White House want it."
The historic and ominous re-writing of the Insurrection Act, accomplished in the dead of night, which gives Bush the legal authority to declare martial law, is now an accomplished fact.
The Pentagon, as one might expect, plays an even more direct role in martial law operations. Title XIV of the new law, entitled, "Homeland Defense Technology Transfer Legislative Provisions," authorizes "the Secretary of Defense to create a Homeland Defense Technology Transfer Consortium to improve the effectiveness of the Department of Defense (DOD) processes for identifying and deploying relevant DOD technology to federal, State, and local first responders."
In other words, the law facilitates the "transfer" of the newest in so-called "crowd control" technology and other weaponry designed to suppress dissent from the Pentagon to local militarized police units. The new law builds on and further codifies earlier "technology transfer" agreements, specifically the 1995 DOD-Justice Department memorandum of agreement achieved back during the Clinton-Reno regime.(4)
It has become clear in recent months that a critical mass of the American people have seen through the lies of the Bush administration; with the president’s polls at an historic low, growing resistance to the war Iraq, and the Democrats likely to take back the Congress in mid-term elections, the Bush administration is on the ropes. And so it is particularly worrying that President Bush has seen fit, at this juncture to, in effect, declare himself dictator.
Source:
Gen. Victor E. Renuart Jr., commander of United States Northern Command and the North American Aerospace Defense Commander.
http://leahy.senate.gov/press/200609/091906a.html   and http://leahy.senate.gov/press/200609/092906b.html See also, Congressional Research Service Report for Congress, "The Use of Federal Troops for Disaster Assistance:  Legal Issues," by Jennifer K. Elsea, Legislative Attorney, August 14, 2006
http://www.govtrack.us/congress/bill.xpd?bill+h109-5122
Journal of Counterterrorism & Homeland Security International, "Recent Contract Awards", Summer 2006, Vol.12, No.2, pg.8; See also, Peter Dale Scott, "Homeland Security Contracts for Vast New Detention Camps," New American Media, January 31, 2006.
"Technology Transfer from defense: Concealed Weapons Detection", National Institute of Justice Journal, No 229, August, 1995, pp.42-43.

WASHINGTON—Economists say the United States may be in a recession, but the personal finances of members of Congress suggest they will be able to weather the storm far better than most Americans, according to a new analysis of three years of lawmakers’ personal financial reports by the nonpartisan Center for Responsive Politics.

U.S. senators had a median net worth of approximately $1.7 million in 2006, the most recent year for which their financial data is available, and 58 percent of the Senate’s members could be considered millionaires. In the House of Representatives, the median net worth was about $675,000, with 44 percent of members having net worths estimated to be at least $1 million. By contrast, only about 1 percent of all American adults had a net worth greater than $1 million around the same time.1

Before the American economy showed signs last year of slowing down, lawmakers had enjoyed an extraordinary run in their personal investments and other finances. Members of Congress, who are now paid about $169,000 annually, saw their net worths soar 84 percent from 2004 to 2006, on average.

“Like a lot of Americans, as the economy did well, Congress did well—but lawmakers did especially well,” said Sheila Krumholz, executive director of the Center for Responsive Politics. “Now that the nation’s economic road is turning rougher, members of Congress have a far more comfortable cushion than most Americans have to ride it out. If their constituents experience economic hardships, policymakers, who are in a position to help boost the economy, generally won’t feel the same pain.”

The figures on elected representatives’ personal wealth come from the financial disclosure reports they were required to file most recently, covering 2006, and from their reports for the preceding two years. CRP’s award-winning website, OpenSecrets.org, details the finances of members of Congress in a free, publicly available, searchable database, along with the finances of the president, vice president and selected executive branch officials. As of last week, this 17-month-old Web tool now contains data on officials’ finances for 2004 through 2006, allowing for easy comparisons of their wealth over the three-year period. Data for 2007 will be integrated after those reports are made available to the public this summer.

while larger, portfolios mirror americans’ investments

In many ways, the investment portfolios of members of Congress resemble the holdings of other American investors. Lawmakers invest most commonly in blue-chip stocks, such as General Electric, Microsoft, Pfizer and Exxon Mobil. They have millions of dollars invested in politically influential industries that they also regulate, including real estate (at least $249.8 million, which includes property they own), commercial banking ($94.5 million), pharmaceuticals and health products ($34.4 million), computers and Internet ($25 million), securities and investment ($24 million), the oil and gas industry ($21.7 million) and beer, wine and liquor ($9.8 million).

Despite the overall increase in politicians’ wealth, not all members of Congress are in sound financial shape, their own reports suggest. Some would even appear to be bankrupt. Twenty-one members of the House in 2006, plus two senators, had net worths that averaged in negative territory. One, Rep. Alcee Hastings (D-Fla.) may owe creditors as much as $7.3 million, according to his 2006 report. The wealthiest member of Congress in 2006 was Rep. Jane Harman (D-Calif.), whose net worth CRP estimated to be $409.4 million.

Determining an official’s precise net worth is impossible using the financial disclosure forms that Congress currently employs, unfortunately. Assets and liabilities are disclosed in ranges, which are often very wide, preventing the public from determining their exact value. In Harman’s case, for example, she may be worth as much as $596.7 million or, by the most conservative measure, $222.2 million. CRP developed a methodology that accounts for these ranges, factoring in the minimum and maximum potential value of an official’s assets and liabilities and then calculating midpoints, or averages.

only opensecrets.org provides CITIZENS with this information

After more than a decade of posting scanned images of lawmakers’ financial reports on OpenSecrets.org, the Center for Responsive Politics created a searchable database in 2006. Previously, citizens, journalists and others could obtain these paper reports only at government offices in Washington or through Web sites that posted images. Using the Center’s database—the only one of its kind on the Internet—comparing the net worth of individual politicians, determining who owns stock in a particular industry and spotting potential conflicts of interest is simple, free and possible from anywhere in the world.

The Personal Financial Disclosures project on OpenSecrets.org is made possible by the Sunlight Foundation, which supports the use of the Internet and new information technology to enable citizens to learn more about what Congress and their elected representatives are doing, and thus help reduce corruption, ensure greater transparency and accountability by government and foster public trust in the vital institutions of democracy. Sunlight also funds databases on OpenSecrets.org that track federal lobbying, Washington’s “revolving door” and privately sponsored congressional travel.

CRP’s database of personal financial disclosures relies on reports filed by the government officials themselves. Sometimes filers leave out information in one year’s report but include it in the prior or following year’s form, which makes changes in their finances from year to year appear misleadingly dramatic. Other valuable information is not required to be disclosed, such as the value of the official’s primary residence (unless it produces income).

“The current disclosure forms and filing process limit the public to just a snapshot of their elected representatives’ finances. For instance, lawmakers will file information on their tax returns in April that won’t show up in the financial disclosures that the public can see.” Krumholz said. “As always, we encourage people to explore OpenSecrets.org and tell us when they spot something that’s worth a closer look.”

The next personal financial reports for Congress and the executive branch, covering 2007, are due May 15. They will be incorporated into OpenSecrets.org’s database after the data is made available to the public. Improving on its transparency, the House of Representatives will post members’ personal financial disclosures online beginning this year. Senators have not announced any plans to give the public similar electronic access to their information.

1SOURCE: 10th Anniversary Edition of the World Wealth Report by investment firms Merrill Lynch and Capgemini, published 2006

Roubini’s Nightmare Scenario;

A Vicious Circle Ending In A Systemic Financial Meltdown

By Mike Whitney

13/03/08 “ICH” — - “It’s another round of the credit crisis. Some markets are getting worse than January this time. There is fear that something dramatic will happen and that fear is feeding itself,” Jesper Fischer-Nielsen, interest rate strategist at Danske Bank, Copenhagen; Reuters

Yesterday’s action by the Federal Reserve proves that the banking system is insolvent and the US economy is at the brink of collapse. It also shows that the Fed is willing to intervene directly in the stock market if it keeps equities propped up. This is clearly a violation of its mandate and runs contrary to the basic tenets of a free market. Investors who shorted the market yesterday, got clobbered by the not so invisible hand of the Fed chief.

In his prepared statement, Bernanke announced that the Fed would add $200 billion to the financial system to shore up banks that have been battered by mortgage-related losses. The news was greeted with jubilation on Wall Street where traders sent stocks skyrocketing by 416 points, their biggest one-day gain in five years.

“It’s like they’re putting jumper cables onto a battery to kick-start the credit market,” said Nick Raich, a manager at National City Private Client Group in Cleveland. “They’re doing their best to try to restore confidence.”

“Confidence”? Is that what it’s called when the system is bailed out by Sugar-daddy Bernanke?

To understand the real meaning behind the Fed’s action; it’s worth considering some of the stories which popped up in the business news just days earlier. For example, last Friday, the International Herald Tribune reported:

“Tight money markets, tumbling stocks and the dollar are expected to heighten worries for investors this week as pressure mounts on central banks facing what looks like the “third wave” of a global credit crisis….Money markets tightened to levels not seen since December, when year-end funding problems pushed lending costs higher across the board.”

The Herald Tribune said that troubles in the credit markets had pushed the stock market down more than 3 percent in a week and that the same conditions which preceded the last two crises (in August and December) were back stronger than ever. In other words, liquidity was vanishing from the system and the market was headed for a crash.

A report in Reuters reiterated the same ominous prediction of a “third wave” saying:

“The two-year U.S. Treasury yields hit a 4-year low below 1.5 percent as investors flocked to safe-haven government bonds….The cost of corporate bond insurance hit record highs on Friday and parts of the debt market which had previously escaped the turmoil are also getting hit.”

Risk premiums were soaring and investors were fleeing stocks and bonds for the safety of government Treasuries; another sure sign that liquidity was disappearing.

Reuters: “The level of financial stress is … likely to continue to fuel speculation of more immediate central bank action either in the form of increased liquidity injections or an early rate cut,” Goldman Sachs said in a note to clients.”

Indeed. When there’s a funding-freeze by lenders, investors hit the exits as fast as their feet will carry them. That’s why the lights started blinking red at the Federal Reserve and Bernanke concocted a plan to add $200 billion to the listing banking system.

New York Times columnist Paul Krugman also referred to a “third wave” in his article “The Face-Slap Theory”. According to Krugman, “The Fed has been cutting the interest rate it controls - the so-called Fed funds rate – (but) the rates that matter most directly to the economy, including rates on mortgages and corporate bonds, have been rising. And that’s sure to worsen the economic downturn.”…(Now) “the banks and other market players who took on too much risk are all trying to get out of unsafe investments at the same time, causing significant collateral damage to market functioning.” What the Times’ columnist is describing is a run on the financial system and the onset of “a full-fledged financial panic.”

The point is, Bernanke’s latest scheme is not a remedy for the trillion dollar unwinding of bad bets. It is merely a quick-fix to avoid a bloody stock market crash brought on by prevailing conditions in the credit markets.

Bernanke coordinated the action with the other members of the global banking cartel—The Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank—and cobbled together the new Term Securities Lending Facility (TSLF), which “will lend up to $200 billion of Treasury securities to primary dealers secured for a term of 28 days (rather than overnight, as in the existing program) by a pledge of other securities, including federal agency debt, federal agency residential-mortgage-backed securities (MBS), and non-agency AAA/Aaa-rated private-label residential MBS. The TSLF is intended to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally.” (Fed statement)

The plan, of course, is wildly inflationary and will put additional downward pressure on the anemic dollar. No matter. All of the Fed’s tools are implicitly inflationary anyway, but they’ll all be put to use before the current crisis is over.

The Fed’s statement continues: “The Federal Open Market Committee has authorized increases in its existing temporary reciprocal currency arrangements (swap lines) with the European Central Bank (ECB) and the Swiss National Bank (SNB). These arrangements will now provide dollars in amounts of up to $30 billion and $6 billion to the ECB and the SNB, respectively, representing increases of $10 billion and $2 billion. The FOMC extended the term of these swap lines through September 30, 2008.”

So, why is the Fed issuing loans to foreign banks? Isn’t that a tacit admission of its guilt in the trillion dollar subprime swindle? Or is it simply a way of warding off litigation from angry foreign investors who know they were cheated with worthless toxic bonds? In any event, the Fed’s largess proves that the G-10 operates as de facto cartel determining monetary policy for much of the world. (The G-10 represents roughly 85% of global GDP)

As for Bernanke’s Term Securities Lending Facility (TSLF) it is intentionally designed to circumvent the Fed’s mandate to only take top-grade collateral in exchange for loans. No one believes that these triple A mortgage-backed securities are worth more than $.70 on the dollar. In fact, according to a report in Bloomberg News yesterday: “AAA debt fell as low as 61 cents on the dollar after record home foreclosures and a decline to AA may push the value of the debt to 26 cents, according to Credit Suisse Group.

“The fact that they’ve kept those ratings where they are is laughable,” said Kyle Bass, chief executive officer of Hayman Capital Partners, a Dallas-based hedge fund that made $500 million last year betting lower-rated subprime-mortgage bonds would decline in value. “Downgrades of AAA and AA bonds are imminent, and they’re going to be significant.” Bass estimates most of AAA subprime bonds in the ABX indexes will be cut by an average of six or seven levels within six weeks.” (Bloomberg News) The Fed is accepting these garbage bonds at nearly full-value. Another gift from Santa Bernanke.

Additionally, the Fed is offering 28 day repos which –if this auction works like the Fed’s other facility, the TAF—the loans can be rolled over free of charge for another 28 days. Yippee. The Fed found a way to recapitalize the banks with permanent rotating loans and the public is none the wiser. The capital-starved banksters at Citi and Merrill must feel like they just won the lottery. Unfortunately, Bernanke’s move effectively nationalizes the banks and makes them entirely dependent on the Fed’s fickle generosity.

The New York Times Floyd Norris sums up Bernanke’s efforts like this:

“The Fed’s moves today and last Friday are a direct effort to counter a loss of liquidity in mortgage-backed securities, including those backed by Fannie Mae and Freddie Mac. Given the implied government guarantee of Freddie and Fannie, rising yields in their paper served as a warning sign that the crunch was worsening and investor confidence was waning. On Oct. 30, the day before the Fed cut the Fed funds rate from 4.75 percent to 4.5 percent, the yield on Fannie Mae securities was 5.75 percent. Today the Fed Funds rate is 3 percent, and the Fannie Mae rate is 5.71 percent, virtually the same as in October…..A sign of the Fed’s success, or lack of same, will be visible in that rate. It needs to come down sharply, in line with Treasury bond rates. Today, the rate was up for most of the day, but it did fall back at the end of the day. Watch that rate for the rest of the week to see indications of whether the Fed’s move is really working to restore confidence.”

Norris is right; it all depends on whether rates go down and whether that will rev-up the moribund housing market again. Of course, that is predicated on the false assumption that consumers are too stupid to know that housing is in its biggest decline since the Great Depression. This is just another slight miscalculation by the blinkered Fed. Housing will not be resuscitated anytime in the near future, no matter what the conditions; and you can bet on that. The last time Bernanke cut interest rates by 75 basis points mortgage rates on the 30-year fixed actually went up a full percentage point. This had a negative affect on refinancing as well as new home purchases. The cuts were a total bust in terms of home sales.

Still, equities traders love Bernanke’s antics and, for the next 24 hours or so, he’ll be praised for acting decisively. But as more people reflect on this latest manuver, they’ll see it for what it really is; a sign of panic. Even more worrisome is the fact that Bernanke is quickly using every arrow in his quiver. Despite the mistaken belief that the Fed can print money whenever it chooses; there are balance sheets constraints; the Fed’s largess is finite. According to MarketWatch:

“Counting the currency swaps with the foreign central banks, the Fed has now committed more than half of its combined securities and loan portfolio of $832 billion, Lou Crandall, chief economist for Wrightson ICAP noted. ‘The Fed won’t have run completely out of ammunition after these operations, but it is reaching deeper into its balance sheet than before.”

Steve Waldman at interfluidity draws the same conclusion in his latest post:

“After the FAF expansion, repo program, and TSLF, the Fed will have between $300B and $400B in remaining sterilization capacity, unless it issues bonds directly.” (Calculated Risk)
So, Bernanke is running short of ammo and the housing bust has just begun. That’s bad. As the wave of foreclosures, credit card defaults and commercial real estate bankruptcies continue to mount; Bernanke’s bag o’ tricks will be near empty having frittered most of his capital away on his Beluga-munching buddies at the investment banks.
But that’s only half the story. Bernanke and Co. are already working on a new list of hyper-inflationary remedies once the credit troubles pop up again. According to the Wall Street Journal, the Fed has other economy-busting scams up its sleeve:
“With worsening strains in credit market threatening to deepen and prolong an incipient recession, analysts are speculating that the Federal Reserve may be forced to consider more innovative responses -– perhaps buying mortgage-backed securities directly.

“As credit stresses intensify, the possibility of unconventional policy options by the Fed has gained considerable interest, said Michael Feroli of J.P. Morgan Chase. He said two options are garnering particular attention on Wall Street: Direct Fed lending to financial institutions other than banks and direct Fed purchases of debt of Fannie Mae and Freddie Mac or mortgage-backed securities guaranteed by the two shareholder-owned, government-sponsored mortgage companies. ( “Rate Cuts may not be Enough”, David Wessel, Wall Street Journal)

Wonderful. So now the Fed is planning to expand its mandate and bail out investment banks, hedge funds, brokerage houses and probably every other brandy-swilling Harvard grad who got caught-short in the subprime mousetrap. Ain’t the “free market” great?

But none of Bernanke’s bailout schemes will succeed. In fact, all he’s doing is destroying the currency by trying to reflate the equity bubble. And how much damage is he inflicting on the dollar? According to Bloomberg, “the risk of losses on US Treasury notes exceeded German bunds for the first time ever amid investor concern the subprime mortgage crisis is sapping government reserves….Support for troubled financial institutions in the U.S. will be perceived as a weakening of U.S. sovereign credit.”

America is going broke and the rest of the world knows it. Bernanke is just speeding the country along the ever-steepening downward trajectory.

Timothy Geithner, President of the New York Fed put it like this:

“The self-reinforcing dynamic within financial markets has intensified the downside risks to growth for an economy that is already confronting a very substantial adjustment in housing and the possibility of a significant rise in household savings. The intensity of the crisis is in part a function of the size of the preceding financial boom, but also of the speed of the deterioration in confidence about the prospects for growth and in some of the basic features of our financial markets. The damage to confidence—confidence in ratings, in valuation tools, in the capacity of investors to evaluate risk—will prolong the process of adjustment in markets. This process carries with it risks to the broader economy.”

Without a hint of irony, Geithner talks about the importance of building confidence on a day when the Fed has deliberately distorted the market by injecting $200 billion in the banking system and sending the flagging stock market into a steroid-induced rapture. Astonishing.

The stock market was headed for a crash this week, but Bernanke managed to swerve off the road and avoid a head-on collision. But nothing has changed. Foreclosures are still soaring, the credit markets are still frozen, and capital is being destroyed at a faster pace than any time in history. The economic situation continues to deteriorate and even unrelated parts of the markets have now been infected with subprime contagion. The massive deleveraging of the banks and hedge funds is beginning to intensify and will continue to accelerate until a bottom is found. That’s a long way off and the road ahead is full of potholes.

“In the United States, a new tipping point will translate into a collapse of the real economy, final socio-economic stage of the serial bursting of the housing and financial bubbles and of the pursuance of the US dollar fall. The collapse of US real economy means the virtual freeze of the American economic machinery: private and public bankruptcies in large numbers, companies and public services closing down massively.” (Statement from The Global Europe Anticipation Bulletin (GEAB)

Is that too gloomy? Then take a look at these eye-popping charts which show the extent of the Fed’s lending operations via the Temporary Auction Facility. The loans have helped to make the insolvent banks look healthy, but at great cost to the country’s economic welfare. http://benbittrolff.blogspot.com/2008/03/really-scary-fed-charts-march.html

The Fed established the TAF in the first place; to put a floor under mortgage-backed securities and other subprime junk so the banks wouldn’t have to try to sell them into an illiquid market at fire-sale prices. But the plan has backfired and now the Fed feels compelled to contribute $200 billion to a losing cause. It’s a waste of time.

UBS puts the banks total losses from the subprime fiasco at $600 billion. If that’s true, (and we expect it is) then the Fed is out of luck because, at some point, Bernanke will have to throw in the towel and let some of the bigger banks fail. And when that happens, the stock market will start lurching downward in 400 and 500 point increments. But what else can be done? Solvency can only be feigned for so long. Eventually, losses have to be accounted for and businesses have to fail. It’s that simple.

So far, the Fed’s actions have had only a marginal affect. The system is grinding to a standstill. The country’s two largest GSEs, Fannie Mae and Freddie Mac, which are presently carrying $4.5 trillion of loans on their books, are teetering towards bankruptcy. Both are gravely under-capitalized and (as a recent article in Barron’s shows) Fannies equity is mostly smoke and mirrors. No wonder investors are shunning their bonds. Additionally, the cost of corporate bond insurance is now higher than anytime in history, which makes funding for business expansion or new projects nearly impossible. The wheels have come of the cart. The debt markets are upside-down, consumer confidence is drooping and, as the Financial Times states, “A palpable sense of crisis pervades global trading floors.” It’s all pretty grim.

The banks are facing a “systemic margin call” which is leaving them capital-depleted and unwilling to lend. Thus, the credit markets are shutting down and there’s a stampede for the exits by the big players. Bernanke’s chances of reversing the trend are nil. The cash-strapped banks are calling in loans from the hedge funds which is causing massive deleveraging. That, in turn, is triggering a disorderly unwind of trillions of dollars of credit default swaps and other leveraged bets. Its a disaster. Economist Nouriel Roubini predicted the whole sequence of events six months before the credit markets seized and the Great Unwind began”. Here’s a sampling of his recent testimony before Congress:

Roubini’s Testimony before Congress:

“There is now a rising probability of a “catastrophic” financial and economic outcome; a vicious circle where a deep recession makes the financial losses more severe and where, in turn, large and growing financial losses and a financial meltdown make the recession even more severe. The Fed is seriously worried about this vicious circle and about the risks of a systemic financial meltdown….Capital reduction, credit contraction, forced liquidation and fire sales of assets at below fundamental prices will ensue leading to a cascading and mounting cycle of losses and further credit contraction. In illiquid market actual market prices are now even lower than the lower fundamental value that they now have given the credit problems in the economy. Market prices include a large illiquidity discount on top of the discount due to the credit and fundamental problems of the underlying assets that are backing the distressed financial assets. Capital losses will lead to margin calls and further reduction of risk taking by a variety of financial institutions that are now forced to mark to market their positions. Such a forced fire sale of assets in illiquid markets will lead to further losses that will further contract credit and trigger further margin calls and disintermediation of credit.

To understand the risks that the financial system is facing today I present the “nightmare” or “catastrophic” scenario that the Fed and financial officials around the world are now worried about. Such a scenario – however extreme – has a rising and significant probability of occurring. Thus, it does not describe a very low probability event but rather an outcome that is quite possible.”

Roubini has been right from the very beginning, and he is right again now. Bernanke can place himself at the water’s edge and lift his hands in defiance, but the tide will come in and wash him out to sea anyway. The market is correcting and nothing is going to stop it.

Just felt like sharing this one:

By Paul Craig Roberts

13/03/08 “ICH ” — - I’ve been watching the dollar die all my life. I sometimes think I will outlast it.

When I was a young man, gold was $35 an ounce. Today one ounce gold bullion coins, such as the Canadian Maple Leaf, cost more than $1,000.

Our coinage was silver. Our dimes, quarters, and half dollars had purchasing power. Even the nickel could purchase a candy bar, ice cream cone or soft drink, and a penny could purchase bubble gum or hard candy. If a kid could collect 5 discarded soft drink bottles from a construction site, the 2 cents deposit on the returnable bottles was enough for the Saturday afternoon movie. Gasoline was 32 cents a gallon. A dollar’s worth was enough for a Saturday night date.

Our silver coinage was 90% silver. People sometimes melted coins in order to make silver spoons, known as coin silver, which can still be found in antique shops. Except for the reduced silver (40%) Kennedy half dollar which continued until 1970, 1964 was the last year of America’s silver coinage. The copper penny departed in 1982. As Assistant Secretary of the Treasury, I opposed the demise of America’s last commodity money, but I couldn’t prevent the copper penny’s death.

During World War II (1941-1945), nickel was diverted from coinage to war, and the US mint issued a wartime silver (35%) nickel.

It is not easy to find items to purchase with today’s US coins, but the silver coins of the same face value still have purchasing power. The 10 cent piece of my youth contains $1.42 worth of silver at today’s silver price. The quarter is worth $3.55, and the half dollar contains $7.10 of silver. The silver dollar is worth 15.2 times its face value. These are just the silver values of coins that might be worth far more depending on condition and rarity. The silver in the wartime nickel is worth $1.10, which is 22 times the coin’s face value. Even the copper penny is worth 2.5 cents.

When I was a young man enjoying travels in Europe, the German mark or Swiss franc traded four to one US dollar. The euro, which is today’s equivalent to the mark or franc, costs $1.55.

People who haven’t accumulated much age have little idea of the corrosive power of “acceptable” inflation. Unlike gold and silver, fiat money has no intrinsic value. When money is created faster than goods and services it drives up prices, thus driving down the value of the money. If freely traded currencies are excessively printed or if inflation, budget deficits, and trade deficits drive currencies off their fixed exchange rates, prices of imports rise as the foreign exchange value of the currency falls.

Today the US, heavily dependent on imports, is subject to double-barrel inflation from both domestic money creation and decline in the dollar’s foreign exchange value.

The US inflation rate is about twice as high as the government’s inflation measures report. In order to hold down Social Security payments, the government changed the way it measures inflation. In the old measure, inflation measured the nominal cost of a defined standard of living. If the price of steak rose, up went the inflation rate. Today if the price of steak rises, the government assumes that people switch to hamburger. Inflation doesn’t go up. Instead, the standard of living it measures goes down.

This is just one of the many ways that the government pulls the wool over our eyes.

With the dollar value of the euro rising through the roof, today a vacation in Europe is far more costly than in the past. Thanks to China, so far Americans have been sheltered from the greatest effects of the dollar’s declining value. Our greatest trade deficit is with China. The prices of the goods from China have not risen, because China keeps its currency pegged to the dollar. As the dollar goes down, China’s currency goes with it, thus holding down price rises.

The resignation of Admiral William Fallon as US military commander in the Middle East probably signals a Bush Regime attack on Iran. Fallon said that there would be no US attack on Iran on his watch. As there was no reason for Fallon to resign, it is not farfetched to conclude that Bush has removed an obstacle to war with Iran.

The US is already over stretched both militarily and economically. An attack on Iran is likely to be the straw that breaks the camel’s back.

Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University. He was awarded the Legion of Honor by French President Francois Mitterrand.

I was perusing my RSS reader and came across a site that had posted 2 commercials by MTV, professing the possibility of the coming Police State. I will just let the videos speak for themselves. It’s as if the collective mind is working. I ‘ve been saying it all along and now here it is. You’ve got to watch these to believe it.

and this one.

This is great stuff, if you like Martial Law

by Andrew G. Marshall

Global Research, March 5, 2008

KBR, or Kellogg Brown & Root, was a subsidiary of the Halliburton Corporation until 2007, when bad publicity and indictments against KBR forced Halliburton to sell its shares in KBR.1

KBR and Vietnam:

KBR, having financed Lyndon Johnson from the 1940s and into the Vice Presidential position, was rewarded after Kennedy’s assassination with lucrative contracts in the escalated Vietnam War. “Johnson, who became president in 1963 after Kennedy’s assassination and who was elected with broad support in 1964, used the Gulf of Tonkin incident,” in order to “justify the sending of ground troops into Vietnam. The result of that move was the need for billions of dollars worth of bases, airstrips, ports, and bridges. Enter Brown & Root.”2

With that, “In 1965, a year after Johnson stepped up America’s participation in Vietnam, Brown & Root joined three other construction and project management behemoths, Raymond International, Morris-Knudsen, and J.A. Jones to form one of the largest civilian-based military construction conglomerates in history.” That team of corporations was known as RMK-BRJ, which, “literally changed the face of Vietnam, clearing out wide swaths of jungle for airplane landing strips, dredging channels for ships, and building American bases from Da Nang to Saigon.”3 KBR, as a member of this joint conglomerate, was also contracted to build new prison cells in Vietnam, replacing the “horribly inhumane prison cells built by the French government 75 years earlier to hold prisoners.”4

KBR and the Rwandan Genocide:

In 1990, the first invasion of Rwanda took place by the Rwandan Patriotic Front (RPF), a militant organization from Uganda, overseen by a man by the name of Paul Kagame. The aim of this Tutsi rebel organization was the overthrow of Rwanda’s then-Hutu President Habyarimana, who was at the time, using World Bank loans to import enormous numbers of machetes under World Bank surveillance of Rwanda’s expenditure.5 This was the offset of the Rwandan civil war, which lasted until 1993, when a peace agreement was being brokered between Rwanda’s president and other neighboring leaders, including the President of Burundi. When the presidents of Rwanda and Burundi were flying back to Rwanda during the time of peace settlements, in 1994, their plane, also carrying on board many French officials, was shot down. This is the event that triggered the Rwandan genocide.

The first invasion of Rwanda by the RPF in 1990 “had the military backing of the first Bush administration [1989-1993], including Secretary of Defense Dick Cheney.”6 In 1992, “then-Defense Secretary Dick Cheney commissioned Brown & Root to produce a classified report examining the benefits of greatly expanding logistics privatization. The report led the Pentagon to solicit bids from thirty-seven firms for an unprecedented five-year contract to provide the bulk of the Army’s overseas logistics needs. Later that year, the Defense Department chose Brown & Root as the first such umbrella logistics contractor.”7

In 1993, newly elected President Bill Clinton continued this policy of supporting the RPF. His trusted allies in the United Nations, Madeline Albright, then US Ambassador to the United Nations and Kofi Annan, then head of the UN’s peacekeeping operations, ensured that the relationship would be concealed from the public. Wayne Madsen reported that both Albright and Annan, “conveniently chose to ignore evidence that a US-trained and supplied guerrilla force – the Tutsi-led Rwandan Patriotic Front (RPF) – was responsible for the fateful April 6, 1994 terrorist missile attack on the aircraft carrying the Hutu presidents of Rwanda and Burundi home from a peace summit in Tanzania.”8

Paul Kagame, leader of the RPF, had been trained at US military bases in the United States in guerilla warfare tactics, and had very close ties to the Pentagon, the US State Department and the CIA.9 It also turns out that the US supplied the RPF with the missiles used to shoot down the plane carrying the two presidents, and that a UN investigation revealed that the warehouse which was used in assembling the missile launchers was leased to a company linked to none other than the CIA. Albright and Annan also ensured that information did not reach the public.10

Madsen revealed that a French investigation in 2004 about the shooting down of the plane, carried out on behalf of the French citizens who were killed on the plane, revealed that there was a startling connection to an organization that goes by the name of the, “International Strategic and Tactical Organization” [ISTO], which represents powerful political and corporate interests, including Armitage and Associates LC, a firm founded by George W. Bush’s first Deputy Secretary of Defense Richard Armitage, and KBR, or Kellogg Brown & Root, then a subsidiary of Halliburton.11 In 1994, KBR was in Rwanda under a $6.3 million contract called “Operation Support Hope.”12

As a result of the Rwandan genocide, many of the key players got handsomely rewarded with promotions. Paul Kagame became President of Rwanda, Kofi Annan became Secretary-General of the United Nations, and Madeline Albright became Bill Clinton’s Secretary of State. A year later, in 1995, Dick Cheney went to become the CEO of Halliburton until the year 2000.

KBR and The Congo Civil War:

Kellogg-Brown & Root, which was connected to the, “International Strategic and Tactical Organization” (ISTO), made another appearance in Africa. This time, it was to do with the Congo civil war, which started in the late 1990s. The Congo was invaded in 1996 by forces from Rwanda under the leadership of Paul Kagame, as well as Burundi and Uganda sending in troops supporting rebel Congolese leader, Laurent Kabila, to overthrow the then-President of Congo [Zaire], Mobutu Sese Seko.13 KBR, “reportedly built a military base on the Congolese/Rwandan border, where the Rwandan army has trained,” and, what’s more, “The Bechtel Corporation provided satellite maps and reconnaissance photos to Kabila so that he could monitor the movements of Mobutu’s troops.”14 Bechtel’s board of directors includes former Secretary of State George Schultz and has former Secretary of Defense, Caspar Wienberger, as a legal counsel, while Dick Cheney was CEO of Halliburton and its subsidiary KBR at this time.

After deposing the former President of Congo, Kabila gave out juicy contracts to big corporations ready to rape the Congo’s resources. American Mineral Fields (AMF) got a huge contract for exploration rights over many rich minerals, and “Mike McMurrough, a friend of US President Bill Clinton, was the chair of AMF.”15 Another big company to profit off the death of millions of Congolese people is Barrick Gold Corporation, a Canadian mining company, with former Canadian Prime Minister Brian Mulroney and Clinton Adviser Vernon Jordan on its board of directors, and George HW Bush as a company adviser.16

KBR in Bosnia and Kosovo:

As economics professor at the University of Ottawa, Michel Chossudovsky, noted, “Throughout the 1990s, the Pakistan Inter Services Intelligence (ISI) was used by the CIA as a go-between — to channel weapons and Mujahideen mercenaries to the Bosnian Muslim Army in the civil war in Yugoslavia.” Quoting a report by the International Media Corporation, Chossudovsky wrote:

Reliable sources report that the United States is now [1994] actively participating in the arming and training of the Muslim forces of Bosnia-Herzegovina in direct contravention of the United Nations accords. US agencies have been providing weapons made in … China (PRC), North Korea (DPRK) and Iran…

… It was [also] reported that 400 members of the Iranian Revolutionary Guard (Pasdaran) arrived in Bosnia with a large supply of arms and ammunition. It was alleged that the US Central Intelligence Agency (CIA) had full knowledge of the operation and that the CIA believed that some of the 400 had been detached for future terrorist operations in Western Europe.

During September and October [1994], there has been a stream of "Afghan" Mujahedin … covertly landed in Ploce, Croatia (South-West of Mostar) from where they have traveled with false papers … before deploying with the Bosnian Muslim forces in the Kupres, Zenica and Banja Luka areas…

The Mujahedin landing at Ploce are reported to have been accompanied by US Special Forces equipped with high-tech communications equipment, … The sources said that the mission of the US troops was to establish a command, control, communications and intelligence network to coordinate and support Bosnian Muslim offensives — in concert with Mujahideen and Bosnian Croat forces.17

Further, a Congressional report issued in 1997, “confirms unequivocally the complicity of the Clinton Administration with several Islamic fundamentalist organisations including Osama bin Laden’s al Qaeda,” and that, “The "Bosnian pattern" described in the 1997 Congressional RPC report was replicated in Kosovo. With the complicity of NATO and the US State Department. Mujahideen mercenaries from the Middle East and Central Asia were recruited to fight in the ranks of the Kosovo Liberation Army (KLA) in 1998-99, largely supporting NATO’s war effort.” It was revealed that, “the task of arming and training of the KLA had been entrusted in 1998 to the US Defence Intelligence Agency (DIA) and Britain’s Secret Intelligence Services MI6.”18

After the US/British instigated conflicts in Bosnia and Kosovo in the 1990s, Halliburton subsidiary KBR got another interesting contract. As the Asia Times reported, KBR’s “big break came in December 1995. Dick Cheney had been the chief executive officer of parent company Halliburton for only two months. KBR was sent to Bosnia-Herzegovina and Kosovo to build two army camps in the middle of two deserted wheat fields. Instead it built two cities, one in Bosnia and one in Kosovo - complete with mail delivery and 24-hour food and laundry. In other words: without KBR, there would be no operating US Army in Bosnia and Kosovo. And the money was great: from 1995-2000, the KBR bill to the US government was more than $2 billion.” On top of this:

KBR’s strategic masterpiece is Camp Bondsteel - the largest and most expensive US Army base since Vietnam, still in use today, complete with roads, its own power generators, houses, satellite dishes, a helicopter airfield and of course a Vietnam-style prison. By a fabulous coincidence, Camp Bondsteel is right on the path of the Albanian-Macedonian-Bulgarian Oil (AMBO) Trans-Balkan Pipeline. This key piece of Pipelineistan is supposed to connect the oil-and-gas-rich Caspian Sea with Europe. The feasibility project for AMBO was conducted by none other than KBR.19

As Michel Chossudovsky wrote, “The plans to build Camp Bondsteel under a lucrative multibillion dollar DoD [Department of Defense] contract with Halliburton’s Texas based subsidiary KBR were formulated while Dick Cheney was Halliburton’s CEO,” and that, “The US and NATO had advanced plans to bomb Yugoslavia before 1999, and many European political leaders now believe that the US deliberately used the bombing of Yugoslavia to establish camp Bondsteel in Kosovo. According to Colonel Robert L. McCure, ‘Engineering planning for operations in Kosovo began months before the first bomb was dropped’.” The reasoning behind this was that:

One of the objectives underlying Camp Bondsteel was to protect the Albanian-Macedonian-Bulgarian Oil pipeline project (AMBO), which was to channel Caspian sea oil from the Bulgarian Black Sea port of Burgas to the Adriatic.

Coincidentally, two years prior to the invasion, in 1997, a senior executive of `Brown & Root Energy, a subsidiary of Halliburton, Edward L. (Ted) Ferguson had been appointed to head AMBO. The feasibility plans for the AMBO pipeline were also undertaken by Halliburton’s engineering company, Kellog, Brown & Root Ltd.20

KBR in Afghanistan and Iraq:

As Dan Briody wrote in The Halliburton Agenda, “When troops were deployed to Afghanistan, so was Kellogg Brown & Root. They built US bases in Bagram and Kandahar for $157 million. As it had done in the past, KBR has men on the ground before the first troops even arrived in most locations.”21 It was reported that KBR “was awarded a $100 million contract in 2002 to build a new U.S. embassy in Kabul, Afghanistan, from the State Department.”22

As the Center for Public Integrity reported, “KBR, Inc., the global engineering and construction giant, won more than $16 billion in U.S. government contracts for work in Iraq and Afghanistan from 2004 to 2006—far more than any other company.”23

Indeed, the wars in Afghanistan and Iraq presented Halliburton and its subsidiary, KBR, with an amazing opportunity of war profiteering on a scale never before seen. Not only was the company enriching itself, but its former CEO, Dick Cheney, currently Vice President of the United States, “sold most of his Halliburton shares when he left the company, but retained stock options worth about $8m,” and the Guardian reported in 2003 that KBR “is still making annual payments to its former chief executive, the vice-president Dick Cheney.”24

In December of 2005, the Chicago Tribune reported that, “A proposal prohibiting defense contractor involvement in human trafficking for forced prostitution and labor was drafted by the Pentagon last summer, but five defense lobbying groups oppose key provisions.” The lobbying groups, “say they’re in favor of the idea in principle, but said they believe that implementing key portions of it overseas is unrealistic. They represent thousands of firms, including some of the industry’s biggest names, such as DynCorp International and Halliburton subsidiary KBR, both of which have been linked to trafficking-related concerns.”25 However, human trafficking experts have criticized the move by the lobbying groups, and told “the Pentagon that the policy would merely formalize practices that have allowed contractors working overseas to escape punishment for involvement in trafficking.”

The allegations of human trafficking include, “the alleged involvement of DynCorp employees in buying women and girls as sex slaves in Bosnia during the U.S. military’s deployment there in the late 1990s,” and that, “Middle Eastern firms working under American subcontracts in Iraq, and a chain of human brokers beneath them, engaged in the kind of abuses condemned elsewhere by the U.S. government as human trafficking,” which pertained to KBR. The Chicago Tribune then reported in 2006 that, “some of KBR’s subcontractors, and a chain of human brokers stretching to South and Southeast Asia, allegedly engaged in the same kinds of abuses routinely condemned” as human trafficking.26

In December of 2007, it was reported that, “A Houston, Texas woman says she was gang-raped by Halliburton/KBR coworkers in Baghdad, and the company and the U.S. government are covering up the incident.” The article continued, “Jamie Leigh Jones, now 22, says that after she was raped by multiple men at a KBR camp in the Green Zone, the company put her under guard in a shipping container with a bed and warned her that if she left Iraq for medical treatment, she’d be out of a job.”27 Jones filed a lawsuit against Halliburton and KBR, and “says she was held in the shipping container for at least 24 hours without food or water by KBR, which posted armed security guards outside her door, who would not let her leave. Jones described the container as sparely furnished with a bed, table and lamp.”

KBR and the North American Union:

More recently, KBR has been awarded contracts by Shell Canada, now majority owned by its parent company, Royal Dutch Shell, “to provide field construction and module fabrication services by Shell Canada for the Scotford Upgrader Expansion east of Edmonton, Alberta, Canada.”28 Business Wire reported that, “The Scotford Upgrader Expansion project is part of the Athabasca Oil Sands Project (AOSP) Expansion 1, which will add approximately 100,000 barrels per day of capacity to the AOSP bitumen mining and upgrading facilities. AOSP is a joint venture between Shell Canada, Chevron Canada Limited and Western Oil Sands L.P. The total estimated cost of the project is between Cdn$10 billion and $12.8 billion.”

This is significant because it directly relates to the “deep integration” of Canada, the United States, and Mexico into a North American Union under the auspices of the Security and Prosperity Partnership of North America (SPP). The Independent Task Force on the Future of North America was a joint task force created between the US-based Council on Foreign Relations (CFR), the Mexican Council on Foreign Relations and the Canadian Council of Chief Executives (CCCE). The purpose of this task force was to produce a document, which would serve as a blueprint for the implementation of “integrating” the three countries of North America into a regional block, ultimately into a North American Union. The report was issued 2 months after the leaders of the 3 nations signed the Security and Prosperity Partnership agreement in 2005, and is titled, “Building a North American Community.”

In this document, regarding integrating energy sectors, it stated, “Canada’s vast oilsands, once a high-cost experimental means of extracting oil, now provide a viable new source of energy that is attracting a steady stream of multibillion dollar investments, and interest from countries such as China, and they have catapulted Canada into second place in the world in terms of proved oil reserves. Production from oilsands fields is projected to reach 2 million barrels per day by 2010.”29 The report further stated, “the three governments need to work together to ensure energy security for people in all three countries. Issues to be addressed include the expansion and protection of the North American energy infrastructure.”30

In 2006, the SPP created a new organization with the specific purpose of “advising” and “directing” the three governments on how to integrate properly and to set deadlines for specific programs. This organization is called the North American Competitiveness Council (NACC).

The Canadian membership of the North American Competitiveness Council includes Dominic D’Alessandro, President and CEO of Manulife Financial, who is also Chairman of the Canadian Council of Chief Executives (CCCE), David A. Ganong, President of Ganong Bros. Limited, as well as being a director of the CCCE and a director of Sun Life Financial, Hunter Harrison, President and CEO of Canadian National Railway Company and member of the CCCE, Linda Hasenfratz, CEO of Linamar Corporation who also sits on the board of CIBC, Michael Sabia, President and CEO of Bell Canada Enterprises (BCE), Annette Verschuren, President of The Home Depot Canada and member of the board of the CCCE, Richard E. Waugh, President and CEO of The Bank of Nova Scotia who also is on the board of the Institute for International Finance, is a member of the Chairman’s Advisory Council for the Council of the Americas, and the IMF’s Capital Markets Consultative Group. Further members of the NACC include Richard L. George, President and CEO of Suncor Energy Inc., an American who is Honourary Chair of the CCCE, and Paul Desmarais, Jr., Chairman and Co-CEO of Power Corporation of Canada.

Suncor, one of the Canadian corporations on the NACC, has as a member of its board of directors an American by the name of John Huff. John R. Huff, also happens to be on the board of directors of KBR32, now in a joint project with Shell in developing the oil sands, as recommended by the SPP.

KBR and Concentration Camps:

The New York Times reported in 2003, that, “Since the attacks of Sept. 11, Kellogg Brown & Root has won significant additional business from the federal government and the Pentagon. It has built cells for detainees at Guantánamo Bay in Cuba and is the exclusive logistics supplier for the Navy and the Army, providing services like cooking, construction, power generation and fuel transportation.”33 In 2005, the Independent reported that, “A subsidiary of Halliburton, the oil services group once led by the US Vice-President, Dick Cheney, has won a $30m (£16m) contract to help build a new permanent prison for terror suspects at Guantanamo Bay, Cuba.”34

On January 24, 2006, KBR, which was still a subsidiary of Halliburton at the time, got a contract from the Department of Homeland Security, “to support the Department of Homeland Security’s (DHS) U.S. Immigration and Customs Enforcement (ICE) facilities in the event of an emergency.”35 The press release on KBR’s website further stated that the contract has a “maximum total value of $385 million over a five-year term, consisting of a one-year based period and four one-year options, the competitively awarded contract will be executed by the U.S. Army Corps of Engineers, Fort Worth District. KBR held the previous ICE contract from 2000 through 2005.” The Executive Director of the KBR Government and Infrastructure division was quoted in the release as saying the contract, “builds on our extremely strong track record in the arena of emergency operations support.”

The contract awarded to KBR, a construction firm, “provides for establishing temporary detention and processing capabilities to augment existing ICE Detention and Removal Operations (DRO) Program facilities in the event of an emergency influx of immigrants into the U.S., or to support the rapid development of new programs,” [Emphasis added]. Further, “The contract may also provide migrant detention support to other U.S. Government organizations in the event of an immigration emergency, as well as the development of a plan to react to a national emergency, such as a natural disaster,” [Emphasis added].

As author, professor and former diplomat Peter Dale Scott notes in his book, The Road to 9/11: Wealth, Empire, and the Future of America, “On February 6, 2007, homeland security secretary Michael Chertoff announced that the fiscal year 2007 federal budget would allocate more than $400 million to add sixty-seven hundred additional detention beds (an increase of 32 percent over 2006).” Scott goes on to state that this was “in partial fulfillment of an ambitious ten-year Homeland Security strategic plan, code-named Endgame, authorized in 2003,” whose goal was to “remove all removable aliens,” as well as “potential terrorists.”36

As Scott wrote in an article shortly after the KBR contract was issued in 2006, “the contract evoked ominous memories of Oliver North’s controversial Rex-84 ‘readiness exercise’ in 1984. This called for the Federal Emergency Management Agency (FEMA) to round up and detain 400,000 imaginary ‘refugees,’ in the context of ‘uncontrolled population movements’ over the Mexican border into the United States.” Scott quoted Daniel Ellsberg, who in 1971 as a military analyst leaked the “Pentagon Papers” about the military’s activities in Vietnam, as saying, “Almost certainly this is preparation for a roundup after the next 9/11 for Mid-Easterners, Muslims and possibly dissenters,” and that, “They’ve already done this on a smaller scale, with the ’special registration’ detentions of immigrant men from Muslim countries, and with Guantanamo.”37

A recent San Francisco Chronicle article, co-authored by a former US Congressman, reported that, “Beginning in 1999, the government has entered into a series of single-bid contracts with Halliburton subsidiary Kellogg, Brown and Root (KBR) to build detention camps at undisclosed locations within the United States. The government has also contracted with several companies to build thousands of railcars, some reportedly equipped with shackles, ostensibly to transport detainees.”38

Conclusion

As the preparations of martial law are being put in place, it is of vital important to identify the specific corporations involved in this process. Administrations change, politicians go in and out of power, but the corporation is a consistent powerhouse. In this case, KBR has been a force to be reckoned with since the rise of Lyndon Johnson. Today, it has reached new heights. It was necessary to examine the recent history of this company’s activities, much the same as identifying a person’s own history and experiences to account for their present personality: so as to better understand their actions today. Given KBR’s history related to war and violence, more light should be shed on their current activities with the Department of Homeland Security, as morality is not a concept KBR seems to understand.

Ok so is it just me or does anyone else realize that Bush is a liar and it appears that people are believing him. If you were to actually believe the media the "Great Decider" is a true proponent of peace and "Democracy". I was watching the news the other night and a story about a small town in California and it’s gas prices came on. The story stated the fact that the prices in this town, Gorda to be exact, were well above five dollars. One gentleman who was interviewed said that he was shocked since the president had just said that nation wide prices were not over four dollars. Well there it is, the man keeps opening his mouth and lies pour out like water. Is there anything this Decider has said we can believe. One thing he has said is true.  He will stay the course and as long as he is president we will continue down this road of war mongering, police state, fear filled deceit. When will it end, are we destined to carry this embarrassment for the next few decades or more? Americans have been led down a path of complacency and lied to until we truly believe that the rest of the world will follow our lead. This is the greatest lie of all. Mr Bush has managed to isolate us from the world and make a laughing stock of this great nation.

Please bear this image and words in mind when I present the next quote to you.

"The receptivity of the great masses is very limited, their intelligence is small, but their power of forgetting is enormous. In consequence of these facts, all effective propaganda must be limited to a very few points and must harp on these in slogans until the last member of the public understands what you want him to understand by your slogan."

Adolph Hitler "Mein Kampf" Chap 6

and then from the same chapter

"But the most brilliant propagandist technique will yield no success unless one fundamental principle is borne in mind constantly and with unflagging attention. It must confine itself to a few points and repeat them over and over. Here, as so often in this world, persistence is the first and most important requirement for success."

and one more,

“If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.”

Joseph Goebbels, Hitler,s Minister of Propaganda.

You see the fact that lies are being looked over is no coincidence and the fact that no action is being taken to call the lies out proves that the Propaganda is being "Catapulted", we are in dyer straights and the next few years are going to prove one way or another if we will get our country back from the fear mongering propagandists who would have us believe that we don’t know what’s good for us and we need them to make everything alright. With that statement I leave you with one more quote.

“Through clever and constant application of propaganda, people can be made to see paradise as hell, and also the other way round, to consider the most wretched sort of life as paradise.”

Adolph Hitler