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In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on May 21, 2021 at 12:09 am
This December 2 will mark the 20th anniversary of the death of a criminal empire. An empire that almost destroyed the Western United States.
The Enron Corporation.
Based in Houston, Texas, Enron had employed 22,000 staffers and was one of the world’s leading electricity, natural gas, communications and paper companies.
In 2000, it claimed revenues of nearly $101 billion. Fortune had named Enron “America’s Most Innovative Company” for six consecutive years.
But then the truth emerged in 2001: Enron’s reported profitability was based not on brilliance and innovation but on systematic and creative accounting fraud.
And, on December 2, 2001, Enron filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code.
Enron’s $63.4 billion in assets made it the largest corporate bankruptcy in U.S. history—until WorldCom’s bankruptcy in 2002.
The California electricity crisis (2000-2001) was caused by extortionate market manipulations and illegal shutdowns of pipelines by Texas energy companies.
California suffered from multiple large-scale blackouts. Pacific Gas & Electric, one of the state’s largest energy companies, collapsed, and the economic fall-out greatly harmed Governor Gray Davis’ standing.
The crisis was made possible by Governor Pete Wilson, who had forced the passage of partial de-regulation legislation in 1996.
Enron seized its opportunity to inflate prices and manipulate energy output in California’s spot markets. The crisis cost the state $40 to $45 billion.
The true scandal of Enron was not that it was eventually destroyed by its own greed.
The true scandal was that its leaders were never Federally prosecuted for almost driving California—and the entire Western United States—into bankruptcy.
Under the pro-oil company administration of George W. Bush, no such prosecutions ever occurred. But Americans had a right to expect such redress under “liberal” President Bill Clinton.
Once the news broke that Enron had filed for bankruptcy, commentators almost universally oozed compassion for its thousands of employees who would lose their salaries and pensions.
No one, however, condemned the “profits at any cost” dedication of those same employees for pushing California to the brink of ruin.
To put this in historical perspective:
- Imagine a historian writing about the destruction of Adolf Hitler’s Schutzstaffel (Guard Detachment), or SS, as a human interest tragedy.
- Imagine its Reichsfuehrer, Heinrich Himmler, being blamed for failing to prevent its collapse—as CEO Kenneth Lay was blamed for Enron’s demise.
- Imagine that same historian completely ignoring the horrific role the SS had played throughout Nazi-occupied countries—and its primary role in slaughtering six million Jews in the Holocaust.
Nor did anyone in the media or government declare that the solution to such extortionate activity lay within the United States Department of Justice via RICO—the Federal Racketeer Influenced Corrupt Organizations Act.
Passed by Congress in 1970, this was originally aimed at the kingpins of the Mafia. Since the mid-1980s, however, RICO has been successfully applied against both terrorist groups and legitimate businesses engaged in criminal activity.
Under RICO, people financially injured by a pattern of criminal activity can bring a claim in State or Federal court, and obtain damages at three times the amount of their actual claim, plus reimbursement for their attorneys’ fees and costs.
Such prosecutions would have pitted energy-extortionists against the full investigative might of the FBI and the sweeping legal authority of the Justice Department.
Consider this selection from the opening of the Act:
(1) “racketeering activity” means (A) any act or threat involving…extortion; (B) any act which is indictable under any of the following provisions of title 18, United States Code: sections 891-894 (relating to extortionate credit transactions), section 1343 (relating to wire fraud)Section 1344 (relating to financial institution fraud), section 1951 (relating to interference with commerce, robbery, or extortion), section 1952 (relating to racketeering)….
With the 20th anniversary of Enron’s demise coming up, the mantra of “de-regulation” should be ruthlessly turned against those who have most ardently championed it.
Republicans have ingeniously dubbed the estate tax—which affects only a tiny minority of ultra-rich—“the death tax.” This makes it appear to affect everyone.
With the 2022 midterm elections fast approaching, Democrats should recast de-regulation thus:
“Greed Relief”
“Greed Protection”
“Legalized Extortion”
And here are some possible slogans:
“The Energy Industry: Giving You the Best Congress Money Can Buy.”
“De-regulation: Let Criminals Be Criminals.”
The coal industry has pumped millions into TV ads touting the non-existent wonders of “clean coal.” And Chevron has spent millions assuring us that all its profits go strictly toward making the world a better place for others. (Presumably not a penny is left for its altruistic executives.)
When faced with such outright lying by the most vested of financial interests, it’s well to recall the warning given by Niccolo Machiavelli more than 500 years ago:
All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it.
If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself. But time, which has been said to be the father of all truth, does not fail to bring it to light.
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In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on April 29, 2021 at 12:14 am
Once Presidents leave office, they usually lead quiet—and highly prosperous–lives.
It’s become commonplace for Presidents to write—or ghostwrite—their memoirs. These usually fetch them a hefty advance, even if sales prove disappointing.
Then there’s the speaker’s circuit, where fees per speech usually run into tens of thousands of dollars.
These are activities that leave the average ex-President an extremely wealthy man—but don’t impact the public purse.
But there are other perks—such as lifetime Secret Service protection for themselves and their spouses, as well as taxpayer-funded office expenses—that put a serious strain on the national budget.
George W. Bush, unlike his father, got two full terms (2001 – 2009).
Bush made money in the oil industry and owned the Texas Rangers professional baseball team before he became Governor of Texas and then President. He’s made tens of millions through a book deal and speaking fees.
His net worth has been estimated at $40 million.
Barack Hussein Obama served two terms (2009 – 2017).
Obama has greatly profited from paid speeches and production deal with Netflix worth an estimated $50 million. He also gets a government pension of $161,000 a year. Michelle Obama got a reported $65 million advance for her memoir “Becoming.”
Obama’s net worth has been estimated from $40 to $135 million.
Donald Trump served one term (2017 – 2021).
Before he entered politics, Trump reportedly got $200 million from his father to enter the real estate business. He made millions as a New York City real estate mogul. Many of his other businesses have failed, but Trump’s vast property holdings make him by far the wealthiest president of all time. He has also profited from his show “The Apprentice,” which ran from 2004 to 2017.
His net worth is estimated at $3.2 billion.
* * * * * * * * * *
It’s long past time for the re-evaluation of Presidential welfare.
By all means, Presidents deserve a pension, but it should be on a par with the time they served in office. This currently amounts to $219,200 per year for life.
Most police officers must serve 20 years before they can collect their full pension. And they are required to put their lives on the line almost every day. No police officer is allowed to retire on a fulltime pension after serving eight—or even just four—years.
Then there’s the matter of funding by the General Service Administration (GSA) to staff, set up and furnish an official office anywhere in the country. Ex-Presidents and their staffers can receive up to $1 million annually in reimbursements for costs.
Ex-Presidents use these monies to propagandize their accomplishments—or what they claim were their accomplishments—while in office. This usually takes the form of self-serving autobiographies—which, in many cases, are ghostwritten efforts.
Former Presidents certainly have the right to publish their memoirs. But they should not receive public monies for doing so.
Moreover: Presidents aren’t required to submit their manuscripts to what amounts to a censorship committee to guarantee they don’t spill national security secrets.
Agents of the CIA are—and can have royalties from their books seized if they don’t allow their manuscripts to be so screened.
As for lifetime Secret Service protection: In 1965, Congress authorized the Secret Service (Public Law 89-186) to protect a former president and his/her spouse during their lifetime, unless they decline protection.
Secret Service agents guarding Barack Obama
In 1994, as a cost-saving measure, Congress acted to limit protection for future former presidents and spouses to ten years after they left office.
But on January 12, 2013, President Barack Obama signed a new law authorizing lifetime protection of all former Presidents and First Ladies. In addition, children of former Presidents will receive protection until they are 16 years old.
This was clearly in response to the September 11, 2001 terrorist attacks on the Pentagon and World Trade Center—and America’s entry into a global war on terrorism.
Still, this is hardly necessary. There has not been one recorded case of an attack on a former President since the Secret Service began protecting the Chief Executive in 1901.
From a national security viewpoint, it is also unnecessary. Once a President leaves office, he is essentially out of the loop of daily government business.
The protection of organized crime witnesses by the Justice Department’s Witness Security Program offers a useful remedy.
While awaiting trial, witnesses are given 24-hour protection by deputy U.S. marshals. But once the trials are over and they have received their new identities and relocation to a safe area, that protection is withdrawn. If they are once again threatened, they can request it from the Marshals Service.
And if such protection is deemed necessary for a former President, then a financial means test should be applied.
Every living ex-President is a millionaire—including even Jimmy Carter, whose wealth is estimated by USA Today at $8.2 million.
Millionaires are not considered eligible for local, state or Federal welfare programs—unless they are former Presidents.
Thus, millionaire ex-Presidents who believe they need/deserve lifetime Secret Service protection should be required to pay for it out of pocket—or hire private security.
Treating former Presidents as gods is not only an outrageous waste of taxpayers’ monies. It is an affront to the ideals of a democratic nation.
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In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on April 28, 2021 at 12:25 am
“All animals are equal, but some animals are more equal than others.”
George Orwell’s famous novella, Animal Farm, was a brutal, symbolic attack on the Soviet Union and its brand of Communism. But it applies just as accurately to the different ways poor and rich Americans are treated.
Let’s start with the poor.
According to the Social Security website: “Supplemental Security Income (SSI) is a Federal income supplement program funded by general tax revenues (not Social Security taxes). It is designed to help aged, blind, and disabled people, who have little or no income; and It provides cash to meet basic needs for food, clothing, and shelter….
“One of our highest priorities is to help people with disabilities achieve independence by helping them take advantage of employment opportunities. Work incentive employment supports help disabled and blind SSI recipients go to work by minimizing the risk of losing their SSI or Medicaid benefits….
“We do not count the first $65 of earned income plus one–half of the amount over $65. Therefore, we reduce your SSI benefit only $1 for every $2 you earn over $65.”
Wow! An SSI recipient can earn up to $65 dollars before that begins to affect his SSI.
In 1960, $65 was equal to $575.88 in 2021 dollars.
That would have been great in 1960. But 1960 is now 61 years ago.
According to Intuit, an American business that specializes in financial software: “The average cost of food per month for one person ranges from $150 to $300, depending on age. However, these national averages vary based on where you live and the quality of your food purchases.”
And according to Statista, a German company specializing in market and consumer data: In February 2021, the average monthly rent for an apartment in the United States was $1,124.
So being able to earn $65 before the Social Security Administration starts reducing your SSI monthly payment shouldn’t be considered a “work incentive.”
For despicable contrast, consider how America’s former Presidents are treated.
The Former Presidents Act of 1958 provides several benefits and perks that are available to Presidents after they leave office. Their biggest perk is an annual pension equal to the pay for a Cabinet Secretary, which is $221,400 in 2021.
Widows of former Presidents are eligible for a $20,000 yearly pension. In addition, former Presidents and their spouses can opt to receive lifetime Secret Service protection.
According to the National Taxpayers Union Foundation, ex-Presidents are provided with:
- Funding by the General Service Administration (GSA) to staff, set up and furnish an official office anywhere in the country.
- Reimbursement for themselves and their staff up to $1 million annually for costs.
- $500,000 a year for their spouses for official travel and security.
- The guarantee of a funeral with full honors and burial, if they or their spouse wants it, at Arlington National Cemetery.
Let’s go back 41 years–to the inauguration of Ronald Reagan, who served from 1981 to 1989.
- Reagan believed that government should not help the impoverished. Those who lacked wealth to buy such necessities as housing and medical insurance were written off as unimportant.
- He claimed to be a “fiscal conservative.” But he drastically shrank the tax-base, bloated the defense budget and destroyed programs to benefit the poor and middle-class.
- As a result, Reagan produced a $1 trillion deficit—which only the Clinton Administration eliminated.
- Before his Presidency ended, 18 wealthy Californians contributed $156,000 apiece to buy him a 7,200 square-foot mansion overlooking Beverly Hills.
- Reagan signed a multi-million dollar deal to write his Presidential memoirs and publish a collection of his speeches.
- He signed an exclusive contract with a Washington lecture bureau, which paid him $50,000 per speech given in the United States and $100,000 overseas. This made him the highest-paid speaker in the country.
- These monies came in addition to his Presidential pension of $99,500 a year for life and his $30,000 annual pension as a former governor of California.
- At a cost to the government of $10 million annually, Reagan continued to receive lifetime Secret Service protection from 40 fulltime agents.
Ronald Reagan
According to a November 5,2020 article in USA Today:
Reagan had made money as a movie and TV actor for more than 20 years. He owned several pieces of real estate, including a 688-acre property near Santa Barbara, California. He also profited from his post-Presidential autobiography.
Reagan had a peak net worth of $14.3 million.
After Reagan came George H.W. Bush (1989 – 1993).
Bush made his initial fortune running an offshore oil drilling company and owned millions of dollars worth of property, including an estate in Kennebunkport, Maine, which around the time of his death in November 2018, was valued at $13.5 million. Like most ex-Presidents, he authored his autobiography: All the Best.
His peak net worth: $26.6 million.
William Jefferson Clinton served from 1993 to 2001.
Since leaving office, Clinton has made millions from his 2005 book My Life. But his wife, Hillary, provides most of his wealth. She reportedly received a $14 million advance for her 2014 memoir Hard Choices. She also made millions from paid speeches.
His peak net worth: $76.8 million.
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In Bureaucracy, History, Law, Law Enforcement, Military, Politics, Social commentary on February 4, 2021 at 12:08 am
According to American political scientist George Michael: “Right-wing terrorism and violence has a long history in America.”
The Supreme Court’s decision, in Brown v. Board of Education (1954), striking down segregated facilities, unleashed a wave of Ku Klux Klan violence against blacks, civil rights activists and Jews. Between 1956 and 1963, an estimated 130 bombings ravaged the South.
Ku Klux Klan flag
During the 1980s, more than 75 Right-wing extremists were prosecuted in the United States for acts of terrorism, carrying out six attacks.
The April 19, 1995 attack on the Alfred P. Murrah Federal Building in Oklahoma by Timothy McVeigh and Terry Nichols killed 168 people. It was the deadliest act of domestic terrorism in the history of the United States until 9/11.
By 2020, Right-wing terrorism accounted for the majority of terrorist attacks and plots in the United States. A 2017 Government Accountability Office report stated that Right-wing extremist groups were responsible for 73% of violent extremist incidents resulting in deaths since September 12, 2001.
Right-wing violence rose sharply during the Barack Obama administration and especially during the Presidency of Donald Trump. His remark after the 2017 Unite the Right rally in Charlottesville, Virginia, that there were “some very fine people on both sides” convinced white supremacists that he favored their goals, if not their methods.
On January 6, 2021, thousands of Right-wing Trump supporters—many of them armed—stormed the Capitol Building in Washington, D.C.
Their goal: To stop members of Congress from counting Electoral Votes cast in the 2020 Presidential election, from which former Vice President Joseph R. Biden was expected to emerge the winner.
After overwhelming the Capitol Police force, they damaged and occupied parts of the building for several hours. Legislators huddled fearfully while National Guard units from several states finally evicted the insurrectionists.
The Capitol attack marked the first time in American history when a defeated Presidential candidate violently sought to remain in office.
It may also mark a desperately-needed change in the priorities of American law enforcement, which has traditionally focused on Left-wingers—and especially blacks—as the country’s mortal enemies.
Numerous commentators have noted the contrast between the tepid police response to the Capitol attack by white Right-wingers and the brutal crackdown on peaceful liberal blacks protesting the murder of George Floyd in Washington D.C. on June 1, 2020.
U.S. Park Police and National Guard troops used tear gas, rubber bullets, flash-bang grenades, horses, shields and batons to clear protesters from Lafayette Square—so Trump could stage a photo-op at St. John’s Episcopal Church.
After 9/11, American law enforcement and Intelligence agencies initiated major reforms to focus on Islamic terrorism.
A similar reform effort, focusing on Right-wing terrorism, could include the following:
- The FBI’s designating Right-wing political and terrorist groups as the Nation’s #1 enemy.
- Turning the Bureau’s powerful arsenal—bugs, wiretaps, informants, SWAT teams—on them.
- Prosecuting militia groups for violating Federal firearms laws.
- Using Federal anti-terrorist laws to arrest, prosecute and imprison Right-wingers who openly carry firearms and threaten violence, even if states allow such display of firearms.
FBI SWAT member
- Creating tip hotlines for reporting illegal Right-wing activities—and offering rewards for information that leads to arrests.
- Treating calls for the murder of members of Congress—as Georgia Representative Marjorie Taylor Greene has done—as felonies punishable by lengthy imprisonment.
- Prosecuting Right-wing leaders involved in the treasonous attempt to overthrow the United States in the Capitol Building attack.
- Prosecuting as “accessories to treason” all those Republican members of Congress who stoked Right-wing anger by lying that the 2020 Presidential election had been stolen from Donald Trump, although every objective news source proved he had lost.
- Directing the Treasury Department’s Terrorist Finance Tracking Program (TFTP) at fundamentalist Christian churches that finance Right-wing terrorism—just as it halts the financing of Islamic terrorist groups by Islamic organizations.
- Using drones, planes and/or helicopters to provide security against similar Right-wing terror demonstrations—especially in Washington, D.C.
- Using the Federal Communications Commission to ban Fox News—the Nation’s #1 Right-wing propaganda network—from representing itself as a legitimate news network, and requiring that its stories carry labels warning viewers: “This is Right-wing propaganda, NOT news.”
- Encouraging victims of Right-wing hate-speech—such as the parents of murdered children at Sandy Hook Elementary School—to file libel/slander lawsuits against their abusers.
- Seizing the assets of individuals and organizations found guilty of Right-wing terrorism offenses.
Such an overhaul would almost certainly include the Justice Department indicting and prosecuting Donald Trump for inciting the treasonous attack on the Capitol Building on January 6.
The 75,000,000 Americans who voted to give him a second term still look to him for leadership. As do the majority of Republicans in the House and Senate.
It is a certainty that Senate Republicans will refuse to convict him in his second impeachment trial—just as they refused in the first. They have already offered their excuse: “It’s unconstitutional to impeach a former President.”
But as a former President, he can still be prosecuted for crimes he committed while in office—just as a former Senator or Supreme Court Justice can.
Whatever the outcome, this would send an unmistakable message to Right-wing terrorists: Your days of immunity are over—and you will be held accountable for your terrorist acts, just as Islamic terrorist groups are.
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In Bureaucracy, History, Law, Law Enforcement, Military, Politics, Social commentary on February 3, 2021 at 12:10 am
Before 9/11, the United States did not attack Islamic terrorism in a coordinated basis.
In the October 4, 2001 episode of the PBS investigative series, “Frontline,” legendary journalist Bob Woodward described the results that followed:
“These terrorist incidents—they used the tools that were available, but it was never in a coherent way. I know from talking to those people at the time, it was always, ‘Oh, we’ve got this crisis. We’re dealing with the Achille Lauro now,’ or ‘We’re dealing with Quaddafi,’ or ‘We’re dealing with Libyan hit squads,’ or ‘We’re dealing with Beirut.’
“And it never—they never got in a position where they said, ‘You know, this is a real serious threat,’ not just episodically, but it’s going to be a threat to this country throughout the administration, future administrations.
“We need to organize to fight it. It can’t be a back-bench operation for the FBI and the CIA. It’s got to be somebody’s issue, so it’s on their desk every day. What do we know? What’s being planned? What are the threats out there?”
Bob Woodward
The 1993 attack on the World Trade Center well illustrates what Woodward was talking about.
On February 26, 1993, a truck bomb detonated below the North Tower of the World Trade Center in New York City. The 1,336 pound urea nitrate-hydrogen device was supposed to topple the North Tower into the South Tower, bringing down both towers and killing tens of thousands of people.
It failed to do so, but killed six people, and injured over 1,000.
The attack was planned by a group of Islamic terrorists including Ramzi Yousef, Mohammed Salameh, Abdul Rachman Yasin, Mahmud Abouhalima, Ahmed Ajaj and Nidal A. Ayyad.
They received financing from Khalid Sheikh Mohammed, who later became the principal financier of the 9/11 attacks.
Instead of treating this as a declaration of Islamic war upon the United States, the newly-installed Bill Clinton administration chose to consider it a purely criminal matter.
In March 1994, four men were convicted of carrying out the bombing: Abouhalima, Ajaj, Ayyad, and Salameh. The charges included conspiracy, explosive destruction of property, and interstate transportation of explosives.
In November 1997, two more were convicted: Yousef, the organizer behind the bombings, and Eyad Ismoil, who drove the truck carrying the bomb.
On September 11, 2001, 19 Islamic terrorists snuffed out the lives of 3,000 Americans in New York, Washington, D.C. and Pennsylvania.
They did so by turning four commercial jetliners into fuel-bombs—and crashing them into, respectively, the Twin Towers of the World Trade Center in New York City; the Pentagon, in Washington, D.C.; and—unintentionally—a field in Somerset County, Pennsylvania.
(The fourth airliner had been aimed at the White House or the Capitol Building. But its passengers, alerted by radio broadcasts of the doom awaiting them, resolved to take over the plane instead. The hijackers slammed the jet into the ground to avoid capture.)
World Trade Center – September 11, 2001
But within less than a month, American warplanes began carpet-bombing Afghanistan, whose rogue Islamic “government” refused to surrender Osama bin Laden, the had of Al-Qaeda who had masterminded the attacks.
By December, 2001, the power of the Taliban was broken—and bin Laden was driven into hiding in Pakistan.
For more than 16 years, the United States—through its global military and espionage networks—relentlessly hunted down most of those responsible for that September carnage.
On May 1, 2011, U.S. Navy SEALS invaded bin Laden’s fortified mansion in Abbottabad, Pakistan—and shot him dead.
And today—almost 20 years after the 9/11 attacks, the United States continues to wage war against Islamic terrorists.
One by one, the leading figures of Taliban, Haqqani and Al-Qaeda have been identified, located with help from coerced or paid-off informants, and targeted for drone strikes. Taking a leadership position in any of these—or other—Islamic terrorist groups has become virtually a death-sentence.
A Predator drone
Nor is the Pentagon the only agency targeting Islamic terrorism. After 9/11, the Treasury Department initiated the Terrorist Finance Tracking Program (TFTP) to identify, track, and pursue terrorists and their networks.
The program tracks terrorist money flows, assists in uncovering terrorist cells and mapping terrorist networks within the United States and abroad.
Yet another result of 9/11 was increased cooperation between the FBI and the CIA.
The CIA’s mandate, prior to the September 11 attacks, had been to target foreign enemies. The FBI’s mandate had been to target domestic ones.
This often brought the two agencies into bureaucratic conflict when confronting foreign-based or -financed terrorists. Neither agency was certain where its jurisdiction ended and the other one’s began.
The 9/11 attacks forced the FBI and CIA—and, even more importantly, Congress—to recognize the need for sharing information.
Almost 20 years after the devastating attacks of September 11, no Islamic terrorist group has mounted a similar one in the United States.
But on January 6, thousands of Right-wing supporters of President Donald J. Trump—many of them armed—stormed the Capitol Building in Washington, D.C.
Inside, members of Congress were counting Electoral Votes cast in the 2020 Presidential election. Former Vice President Joseph R. Biden was expected to emerge the winner.
For Trump—who had often “joked” about becoming “President-for-Life”—this was intolerable. And it must be prevented by any means—legal or otherwise.
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In Bureaucracy, History, Military, Politics, Social commentary, Uncategorized on November 13, 2020 at 12:05 am
There’s a reason why Republicans win so many elections—especially at the Presidential level.
Republicans learned long ago that most voters aren’t moved by appeals to their rationality. Instead, what counts with them is emotions.
And Republicans long ago became experts at appealing to these—especially the baser ones.
For Republicans, the Big Three are:
Hatred
Greed
Fear
Hatred: There is no better example of a candidate who played successfully on the hatred of American voters than Donald Trump. If Barack Obama was the 2008 candidate of “Hope and Change,” then Trump was the 2016 candidate of “Hate and Fear.”
From June 15, 2015, when he launched his Presidential campaign, until October 24, 2016, Trump fired almost 4,000 angry, insulting tweets at 281 people and institutions that had somehow offended him.
Donald Trump
The New York Times needed two full pages of its print edition to showcase them.
Among his targets:
- Hillary Clinton
- The New York Times
- President Barack Obama
- CNN
- Actress Meryl Streep
- The Washington Post
- Singer Neil Young
- Democrats
- Actor Arnold Schwarzenegger
- Republicans
- Comedian John Oliver
- The State of New Jersey
- Beauty pageant contestants
Others he clearly delighted in insulting during the campaign included:
- Women
- Blacks
- Hispanics
- Asians
- Muslims
- The disabled
- Prisoners-of-war
Greed: On August 23, 2018, Trump, as President, offered an unprecedented reason why he shouldn’t be impeached: “I tell you what, if I ever got impeached, I think the market would crash, I think everybody would be very poor.”
[On July 25, Trump had tried to force the president of Ukraine to frame Joe Biden, Trump’s expected Democratic opponent in 2020. On August 12, an unnamed CIA whistleblower had filed a complaint with the Inspector General of the Intelligence community about extortion attempt. Trump undoubtedly knew of this filing.]
White House Press Secretary Sarah Huckabee Sanders doubtless spoke for millions of Trump supporters when she said, on June 4, 2018:
“Since taking office, the President has strengthened American leadership, security, prosperity, and accountability. And as we saw from Friday’s jobs report, our economy is stronger, Americans are optimistic, and business is booming.”
Susan Page, Washington Bureau Chief for USA TODAY, summed up the popularity of the “Greed Appeal” to voters on the March 13 edition of “Washington Week in Review”:
“USA Today has conducted a poll about the economic concerns that are out there….And Congress—you’re seeing fear in this country about the economy.
“In fact, when we did this poll this week about how Americans’ lives have been affected by the Coronavirus, people expressed more concern about the economic and financial effect than they did about the health effect. And you know, that goes to why this matters so much to President Trump.
“How many voters have you talked to who said, you know, ‘I don’t really like President Trump’s tweets, but I like what I see happening in my 401(k)’?”
Fear: From the end of World War II in 1945 to the collapse of the Soviet Union in 1991, the Enemy of Choice for Republicans was the Communists.
Millions of Americans were so pathologically frightened by “The Red Menace” that any Democratic politician libeled as a “Communist,” “Comsymp,” “fellow traveler” was considered at least a potential traitor, if not an actual one.
Among the Republican politicians who rode to victory on a wave of Red hysteria: Richard Nixon and Joseph McCarthy
Even as late as 1992, President George H.W. Bush and the Republican establishment charged that Arkansas Governor Bill Clinton might be a KGB plant. Their evidence: During his tenure at Oxford University in 1969-70, Clinton had briefly visited Moscow—and thus might have been turned into a “Manchurian Candidate.”
After the collapse of the Soviet Union, Right-wingers had to settle for attacking their opponents as “liberals” and “soft on crime.” But these charges didn’t carry the same weight as “Communists” and “traitors.”
Then, on September 11, 2001, Republicans—and their Right-wing supporters—at last found a suitable replacement for the Red Menace: The Maniacal Muslim.
World Trade Center on September 11, 2001
Led by President George W. Bush, Republicans used fear of Muslims to con and bully the nation into a needless, bloody, budget-busting war on Iraq. Seventeen years later, that war continues.
So how can Democrats counter such appeals? By making equally ruthless use of them.
For example––Fear: Republicans rely heavily on support from rural America—where fundamentalist religious beliefs hold sway. Instead of ridiculing those beliefs, Democrats—even those who are atheists—should make use of them.
How?
- By recognizing that fundamentalists believe that widespread plague is a sign of God’s displeasure; and
- Repeatedly proclaiming that the Coronavirus is God’s judgment on a sinful nation for electing Donald Trump President.
Democrats must closely study the beliefs of their sworn enemies and make skillful use of them—as the Israelis have done.
Suicide bombers’ attacks in Israel sharply decreased after Israelis started patrolling with bomb-sniffing dogs.
Why?
Because Islamics believe that dogs are defiling creatures—and that if their blood is mingled with that of a dog, they won’t go to Heaven to claim those 72 willing virgins.
To defeat your enemy, you must learn his weaknesses—and ruthlessly attack them.
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In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on September 9, 2020 at 12:03 am
Eighty-six years after Adolf Hitler declared himself “the Supreme Judge of the German people,” the United States faces the same fate under President Donald J. Trump.
On September 2, Trump sent a memo to Russell T. Vought, the director of the Office of Management and Budget, and Attorney General William P. Barr. Its message: Find ways to cut funding to several cities controlled by Democrats.
Trump singled out four cities for defunding: Portland, Oregon; Washington, D.C.; Seattle, Washington; and New York City.
Trump gave his official reason for this move: “Anarchy has recently beset some of our states and cities. My administration will not allow federal tax dollars to fund cities that allow themselves to deteriorate into lawless zones.”
He blames rising crime rates on Black Lives Matter protesters and blacks who have looted and burned stores during nationwide protests against police brutality. And he claims that only he can save America from a civil war ignited by such protesters.
At the same time, he has totally ignored—or defended—armed white militias who have faced off with Black Lives Matter protesters.
The memo seemed especially aimed at New York City, where Mayor Bill de Blasio and the state’s governor, Andrew Cuomo, have been highly critical of Trump’s failure to stem the Coronavirus pandemic.
On Twitter, Cuomo accused Trump of trying to strip funding that cities and states need to recover from Coronavirus: “He is not a king. He cannot ‘defund’ NYC. It’s an illegal stunt.”
Andrew Cuomo
Bill Neidhardt, a spokesman for de Blasio, tweeted: “As much as Donald Trump wants New York City to drop dead, we will never let this stand. This has nothing to do with ‘law and order’. This is a racist campaign stunt out of the Oval Office to attack millions of people of color.”
Trump’s directive “intrudes on Congress’ power of the purse, would never stand up in court and is nothing more than a distraction from the fact that Americans are less safe under the Trump administration,” said Evan Hollander, a spokesman for the Democratic majority of the House Appropriations Committee.
“It seems the only place where there is no respect for the rule of law is the White House,” Seattle Mayor Jenny Durkan said.
She attacked Trump’s move as a tactic to further divide Americans when the Coronavirus pandemic demanded leadership and unity.
Trump “continues to believe that disenfranchising people living in this country to advance his petty grudges is an effective political strategy,” tweeted Portland Mayor Ted Wheeler.
On June 1, Trump declared: ”I am your President of law and order, and an ally of all peaceful protesters.”
But on that same evening, Trump ordered police, Secret Service agents and National Guard troops to violently remove peaceful protesters from Lafayette Square, which borders St. John’s Church near the White House.
They were protesting the murder of George Floyd, a black unemployed restaurant security guard, by a white Minneapolis police officer on May 25.
The purpose of the removal: To allow Trump to have a photo op outside the church.
Donald Trump at St. John’s Church
As for his claim of being “your President of law and order.”
Trump is only the third United States President—after Andrew Johnson and Bill Clinton—to be impeached. Charged with obstruction of Congress and abuse of power by a Democratic House of Representatives, he was acquitted by the Republican-majority Senate on February 5.
In addition, Trump has waged all-out war on the following legal institutions:
- The FBI: When FBI Director James Comey dared to pursue a probe into Russia’s subversion of the 2016 Presidential election on Trump’s behalf, Trump fired him without warning on May 9, 2017.
- The Justice Department: Trump repeatedly attacked his own Attorney General, Jeff Sessions, for not “protecting” him from agents pursuing the Russia investigation. On November 7, 2018, the day after Democrats won a majority of House seats, Trump fired Sessions.
- The Special Counsel: He tried to fire Special Counsel Robert S. Mueller, the man appointed to investigate the Russian government’s interference in the 2016 Presidential election.
- The Judiciary: On October 20, 2018, Trump attacked U.S. District Judge Jon S. Tigar as an “Obama judge.” Tigar had ruled that the administration must consider asylum claims no matter where migrants cross the U.S. border.
- The Electoral Process: On September 2, Trump urged residents in the critical political battleground of North Carolina to try to vote twice in the Nov. 3 election, once by mail and once in person—a totally illegal act..
On the private-sector front:
- On December 10, 2019, Trump paid $2 million to eight charities as part of a settlement where he admitted to misusing funds raised by the Donald J. Trump Foundation. These had been used to promote his presidential bid and pay off business debts. He was forced to close the charity as a result.
- Legal action also forced Trump to shut down his unaccredited Trump University, which the conservative magazine National Review described as a “massive scam.” Although he boasted that he never settled lawsuits, he settled this one in November, 2016, for a reported $25 million rather than go to trial.
When Donald Trump calls himself a “law and order President,” he means: “My order is your law.”
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In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on September 8, 2020 at 12:06 am
On June 30, 1934, German Chancellor Adolf Hitler ordered a massive purge of his private army, the S.A., or Brownshirts. It was carried out by Hitler’s elite army-within-an-army, the Schutzstaffel, or Protective Squads, better known as the SS.
The Brownshirts (also known as “Stiormtroopers”) had been instrumental in securing Hitler’s rise to Chancellor of Germany on January 30, 1933. They had intimidated political opponents (especially Communists) and organized mass rallies for the Nazi Party.
But after Hitler reached the pinnacle of power, they became a liability.
Ernst Rohm, their commander, had served as a tough army officer during World War 1. He was one of the few men allowed to use “du,” the personal form of “you” in German, when addressing Hitler.
Rohm urged Hitler to disband the regular German army, the Reichswehr, and replace it with his own undisciplined paramilitary legions as the nation’s defense force.
Ernst Rohm
Frightened by Rohm’s ambitions, the generals of the Reichswehr gave Hitler an ultimatum: Get rid of Rohm—or they would get rid of him.
Hitler didn’t hesitate. Backed by armed thugs, he stormed into Rohm’s apartment, catching him in bed with a young S.A. Stormtrooper.
Accusing his onetime friend of treasonously plotting to overthrow him, Hitler screamed: “You’re going to be shot!”
Rohm was not plotting a coup. But the generals had the whip hand—and, for Hitler, that was enough to literally sign Rohm’s death warrant.
Hours later, sitting in a prison cell, Rohm was offered a pistol with a single bullet.
“Adolf himself should do the dirty work,” said Rohm, adding: “All revolutions devour their own children.”
One hour later, Rohm died in a hail of SS bullets.
Earlier throughout that day, so had several hundred of his longtime S.A. cronies. Many of them yelled “Heil Hitler!” as they stood against barracks walls waiting to be shot.
SS firing squad
Thirteen days later, addressing the Reichstag, Germany’s parliament, Hitler justified his purge in a nationally broadcast speech: “If anyone reproaches me and asks why I did not resort to the regular courts of justice, then all I can say is this: In this hour I was responsible for the fate of the German people, and thereby I became the Supreme Judge of the German people!
“I gave the order to shoot the ringleaders in this treason, and I further gave the order to cauterize down to the raw flesh the ulcers of this poisoning of the wells in our domestic life.
“Let the nation know that its existence—which depends on its internal order and security—cannot be threatened with impunity by anyone! And let it be known for all time to come that if anyone raises his hand to strike the State, then certain death is his lot.”
Adolf Hitler addressing parliament
Eighty-six years after Adolf Hitler declared himself “the Supreme Judge of the German people,” the United States faces the same fate under President Donald J. Trump.
On September 2, Trump sent a memo to Russell T. Vought, the director of the Office of Management and Budget, and Attorney General William P. Barr. Its title: “Reviewing Funding to State and Local Government Recipients That Are Permitting Anarchy, Violence and Destruction in American Cities.”
Both officials were ordered to find ways to cut funding to several cities controlled by Democrats.
Donald Trump
Accusing local and state officials of abdicating their duties, Trump wrote: “Anarchy has recently beset some of our states and cities. My administration will not allow federal tax dollars to fund cities that allow themselves to deteriorate into lawless zones.”
In his memo, Trump ordered Vought to issue guidance in 30 days “to the heads of agencies on restricting eligibility of or otherwise disfavoring, to the maximum extent permitted by law, anarchist jurisdictions in the receipt of Federal grants.”
And he gave Barr 14 days to identify “anarchist jurisdictions” that “permitted violence and the destruction of property to persist and have refused to undertake reasonable measures” to restore order.
Trump singled out four cities for defunding: Portland, Oregon; Washington, D.C.; Seattle, Washington; and New York City.
The move threatens billions of dollars for many of the country’s largest urban cities.
But protecting American citizens from crime is not the real reason for this effort.
Polls show Trump trailing his Democratic rival, former Vice President Joseph R. Biden Jr. As a result, Trump is resorting to the classic Republican tactics of smear and fear.
He wants to shift public attention from his failure to halt the escalating Coronavirus pandemic—which has already killed more than 189,000 Americans and left 25 million unemployed.
He also wants to turn Black Lives Matter protests against police brutality into white counter-protest at the ballot box.
Trump has long relied on divide-and-rule tactics to gain and hold power. He hopes to persuade suburban whites that he is the only thing standing between them and a black crime wave about to engulf them.
The hatred that millions of older whites—especially rural ones—felt for most of their fellow Americans gave Trump the White House in 2016. Trump hopes that such hatred—combined with fear—will do it again in 2020.
2003 IRAQ WAR, 401(KS), 9/11 TERRORIST ATTACKS, ABC NEWS, ALTERNET, AMERICABLOG, AP, BABY BOOMER RESISTANCE, BARACK OBAMA, BILL CLINTON, BLACKS, BUZZFEED, CBS NEWS, CNN, COLD WAR, CORONAVIRUS, CROOKS AND LIARS, DAILY KOZ, DEMOCRATS, DONALD TRUMP, DRUDGE RETORT, ECONOMY, FACEBOOK, FIVETHIRTYEIGHT, FUNDAMENTALIST RELIGION, GEORGE H.W. BUSH, HARPER’S MAGAZINE, HILLARY CLINTON, ISLAM, ISRAELIS, MEDIA MATTERS, MOTHER JONES, MOVEON, MSNBC, MUSLIMS, NBC NEWS, NEIL YOUNG, NEWSWEEK, NPR, PBS NEWSHOUR, POLITICO, POLITICUSUSA, RAW STORY, REPUBLICANS, REUTERS, SALON, SARAH HUCKABEE SANDERS, SEATTLE TIMES, SLATE, SOVIET UNION, SUICIDE BOMBERS, TALKING POINTS MEMO, THE ATLANTIC, THE CHICAGO SUN-TIMES, THE CHICAGO TRIBUNE, THE DAILY BEAST, THE DAILY BLOG, THE DISABLED, THE GUARDIAN, THE HILL, THE HUFFINGTON POST, THE LOS ANGELES TIMES, THE NATION, THE NEW REPUBLIC, THE NEW YORK TIMES, THE VILLAGE VOICE, THE WASHINGTON POST, THINKPROGRESS, TIME, TRUTHDIG, TRUTHOUT, TWITTER, TWO POLITICAL JUNKIES, U.S. NEWS & WORLD REPORT, UPI, USA TODAY, WONKETTE, WORLD WAR ii
In Bureaucracy, History, Politics, Social commentary on August 28, 2020 at 1:47 am
Throughout 2016, Facebook posters were certain: Hillary Clinton would be the next American President! Democrats would retake the House—maybe even the Senate!
Then reality intruded.
Why do Republicans win so many elections—especially at the Presidential level?
Republicans learned long ago that most voters aren’t moved by appeals to their rationality. Instead, what counts with them is emotions.
And long ago they became experts at appealing to these—especially the baser ones.
For Republicans, the Big Three are:
Hatred
Greed
Fear
Hatred: There can be no better example of a politician who has played successfully on the hatred of American voters than Donald Trump. If Barack Obama was the 2008 candidate of “Hope and Change,” then Trump was the 2016 candidate of “Hate and Fear.”
From June 15, 2015, when he launched his Presidential campaign, until October 24, 2016, Trump fired almost 4,000 angry, insulting tweets at 281 people and institutions that had somehow offended him.
Donald Trump
The New York Times needed two full pages of its print edition to showcase them.
The message of Donald Trump’s campaign was one of hatred toward everyone who was not an avid Trump supporter.
Whites comprised the overwhelming majority of the audiences at Trump rallies. Not all were racists, but many of those who were advertised it on T-shirts: “MAKE AMERICA WHITE AGAIN.”
They resented that a black man had twice been elected President of the United States. And they were determined to put a white man back in the White House. And Hillary Clinton’s being an “uppity women’s libber” brought their hatred to a boiling point.
Greed: On August 23, 2018, Trump gave an unprecedented reason why he shouldn’t be impeached: “I tell you what, if I ever got impeached, I think the market would crash, I think everybody would be very poor.”
White House Press Secretary Sarah Huckabee Sanders doubtless spoke for millions of Trump supporters when she said, on June 4, 2018:
“Since taking office, the President has strengthened American leadership, security, prosperity, and accountability. And as we saw from Friday’s jobs report, our economy is stronger, Americans are optimistic, and business is booming.”
Susan Page, Washington Bureau Chief for USA TODAY, summed up the popularity of the “Greed Appeal” to voters on the March 13 edition of “Washington Week in Review”:
“USA Today has conducted a poll about the economic concerns that are out there….And Congress—you’re seeing fear in this country about the economy.
“In fact, when we did this poll this week about how Americans’ lives have been affected by the Coronavirus, people expressed more concern about the economic and financial effect than they did about the health effect. And you know, that goes to why this matters so much to President Trump.
“How many voters have you talked to who said, you know, I don’t really like President Trump’s tweets, but I like what I see happening in my 401(k)? And when they look at their 401(k) this week, it may not look quite as bright as it did before.”
Fear: From the end of World War II in 1945 to the collapse of the Soviet Union in 1991, the Enemy of Choice for Republicans was the Communists.
Millions of Americans were so pathologically frightened by “The Red Menace” that any Democratic politician libeled as a “Communist,” “Comsymp,” “fellow traveler” was considered at least a potential traitor, if not an actual one.
Among the Republican politicians who rode to victory on a wave of Red hysteria: Richard Nixon and Joseph McCarthy
Even as late as 1992, President George H.W. Bush and the Republican establishment charged that Arkansas Governor Bill Clinton might be a KGB plant. Their evidence: During his tenure at Oxford University in 1969-70, Clinton had briefly visited Moscow—and thus might have been turned into a “Manchurian Candidate.”
After the collapse of the Soviet Union, Right-wingers had to settle for attacking their opponents as “liberals” and “soft on crime.” But these charges didn’t carry the same weight as “Communists” and “traitors.”
Then, on September 11, 2001, Republicans—and their Right-wing supporters—at last found a suitable replacement for the Red Menace: The Maniacal Muslim.
World Trade Center on September 11, 2001
Led by President George W. Bush, Republicans used fear of Muslims to con and bully the nation into a needless, bloody, budget-busting war on Iraq. Seventeen years later, that war continues.
So how can Democrats counter such appeals? By making equally ruthless use of them.
For example—Fear: Republicans rely heavily on support from rural America—where fundamentalist religious beliefs hold sway. Instead of ridiculing those beliefs, Democrats—even those who are atheists—should make use of them.
How?
- By recognizing that fundamentalists believe that widespread plague is a sign of God’s displeasure; and
- Repeatedly proclaiming that the Coronavirus is God’s judgment on a sinful nation for electing Donald Trump President.
Democrats must closely study the beliefs of their sworn enemies and make skillful use of them—as the Israelis have done.
Suicide bombers’ attacks in Israel sharply decreased after Israelis started patrolling with bomb-sniffing dogs.
Why?
Islamics believe that dogs are defiling creatures—and that if the blood of suicide bombers mingles with that of a dog, they won’t go to Heaven to claim those 72 willing virgins.
To defeat your enemy, you must learn his weaknesses—and ruthlessly attack them.
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In Bureaucracy, History, Law, Politics, Social commentary on August 27, 2020 at 12:05 am
On August 24, Kimberly Guilfoyle delivered a speech at the Republican National Convention (RNC) that met the psychological meaning of “projection”: Unconsciously taking unwanted emotions or traits you don’t like about yourself and attributing them to someone else.
Guilfoyle, 51, is a former attorney, prosecutor and television news personality who currently works as an advisor for President Donald Trump.
In 2001, Guilfoyle married San Francisco supervisor Gavin Newsom. Two years later, Newsom was elected mayor of San Francisco. In January 2004, Guilfoyle moved to New York to host the program Both Sides on Court TV and work as a legal analyst on CNN’s Anderson Cooper 360.
In 2006, citing the strain of a bi-coastal marriage, Guilfoyle and Newsom divorced.
She joined Fox News in February 2006, as host of the weekend show The Lineup. When this was canceled, she remained a regular contributor to the network.
But in 2018, she abruptly left Fox News. According to the Huffington Post:
“Six sources said Guilfoyle’s behavior included showing personal photographs of male genitalia to colleagues (and identifying whose genitals they were), regularly discussing sexual matters at work and engaging in emotionally abusive behavior toward hair and makeup artists and support staff.”
Kimberly Guilfoyle
Photographer: Jill Lotenberg, Jill PhotographyPublisher: Chase Backer, 25A Magazine / CC BY-SA (https://creativecommons.org/licenses/by-sa/4.0)
In May 2018, Guilfoyle and Donald Trump, Jr.—the son of the President—attended an event together. News subsequently leaked that the two were dating—while he was separated from but still married to his wife, Vanessa. Guilfoyle had been friends with the Trump family for years
The Trumps divorced at the end of 2018.
Since 2018, Trump Jr. has been openly dating Guilfoyle. According to The New York Times Magazine, they “have become fund-raising powerhouses,” helping the President amass a huge war chest.
Donald Trump Junior
Gage Skidmore from Peoria, AZ, United States of America / CC BY-SA (https://creativecommons.org/licenses/by-sa/2.0)
Among the statements Guilfoyle made at the RNC:
“President Trump is the law and order President.”
[Trump has fired FBI Director James Comey, attacked Federal judges who found his policies unconstitutional, and fired Inspectors General for investigating his corrupt officials. He is only the third President—after Andrew Johnson and Bill Clinton—to be impeached.]
“Biden, Harris, and the rest of the Socialists will fundamentally change this nation.”
[Russian Communist dictator Vladimir Putin is the only major world leader whom Trump has never attacked nor even criticized. He has rejected the findings of the FBI, CIA and National Security Agency that Putin intervened in the 2016 Presidential campaign to ensure Trump’s election.]
“[Democrats] will selfishly send your jobs back to China while they get rich.”
[The President has more than 100 trademarks in China, including 35 granted pre-approval since he took office.]
Donald Trump
“They will defund, dismantle, and destroy America’s law enforcement.”
[Trump has urged his followers to disobey state laws requiring them to wear masks and maintain social distancing. Many of them have marched on state capitols brandishing automatic weapons.]
“My mother, Mercedes, was a special education teacher from Aguadilla, Puerto Rico. My father, also an immigrant, came to this nation in pursuit of the American Dream.”
[Trump has tried to stop both legal and illegal immigration. And since July, 2017, U.S. immigration authorities have separated more than 5,400 children from their parents at the Mexico border.]
“Human sex drug traffickers should not be allowed to cross our border.”
[Trump partied heartily with sex trafficker Jeffrey Epstein. When Epstein’s widow, Ghislaine Maxwell, was charged with the enticing of minors and sex trafficking of underage girls, Trump wished her well.]
“In President Trump’s America, we light things up. We don’t dim them down.”
[Trump “lit up” Washington, D.C.’s Lafayette Park with tear gas against peaceful protesters so he could pose for a photo op at St. John’s Church following the death of George Floyd.]
“This election is a battle for the soul of America. Your choice is clear. Do you support the cancel culture?”
[When protesters object to honoring treasonous Confederate generals with monuments, Trump calls that “cancel culture.” But when a tire-making company bans MAGA caps from its workplace, Trump calls for a boycott of Goodyear Tires.]
“[Democrats] want to control what you see and think and believe so that they can control how you live.”
[When Twitter dared to fact-check Trump’s false tweets about mail-in ballots, he signed an executive order targeting liability protection for social media companies.]
“…President Trump cut middle class taxes, putting tens of thousands of dollars back in the pockets of working class Americans….”.
[Forbes magazine, which calls itself “the capitalist tool,” stated that “Trump tax cuts helped billionaires pay less taxes than the working class in 2018.” Reported Forbes: “For the first time in American history, the 400 wealthiest people paid a lower tax rate than any other group.”]
“Don’t let the Democrats take you for granted. Don’t let them step on you. Don’t let them destroy your families, your lives, and your future.”
[Furious that Rep. Adam Schiff (D-CA) mocked him during a session of the House Intelligence Committee, Trump tweeted: “I want Schiff questioned at the highest level for Fraud & Treason…..”]
* * * * *
Ernest Hemingway warned: “Fascism is a lie told by bullies.”
On the first night of the Republican National Convention, Kimberly Guilfoyle proved that Hemingway’s warning still holds true.
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DE-REGULATION: LET PREDATORS BE PREDATORS
In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on May 21, 2021 at 12:09 amThis December 2 will mark the 20th anniversary of the death of a criminal empire. An empire that almost destroyed the Western United States.
The Enron Corporation.
Based in Houston, Texas, Enron had employed 22,000 staffers and was one of the world’s leading electricity, natural gas, communications and paper companies.
In 2000, it claimed revenues of nearly $101 billion. Fortune had named Enron “America’s Most Innovative Company” for six consecutive years.
But then the truth emerged in 2001: Enron’s reported profitability was based not on brilliance and innovation but on systematic and creative accounting fraud.
And, on December 2, 2001, Enron filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code.
Enron’s $63.4 billion in assets made it the largest corporate bankruptcy in U.S. history—until WorldCom’s bankruptcy in 2002.
The California electricity crisis (2000-2001) was caused by extortionate market manipulations and illegal shutdowns of pipelines by Texas energy companies.
California suffered from multiple large-scale blackouts. Pacific Gas & Electric, one of the state’s largest energy companies, collapsed, and the economic fall-out greatly harmed Governor Gray Davis’ standing.
The crisis was made possible by Governor Pete Wilson, who had forced the passage of partial de-regulation legislation in 1996.
Enron seized its opportunity to inflate prices and manipulate energy output in California’s spot markets. The crisis cost the state $40 to $45 billion.
The true scandal of Enron was not that it was eventually destroyed by its own greed.
The true scandal was that its leaders were never Federally prosecuted for almost driving California—and the entire Western United States—into bankruptcy.
Under the pro-oil company administration of George W. Bush, no such prosecutions ever occurred. But Americans had a right to expect such redress under “liberal” President Bill Clinton.
Once the news broke that Enron had filed for bankruptcy, commentators almost universally oozed compassion for its thousands of employees who would lose their salaries and pensions.
No one, however, condemned the “profits at any cost” dedication of those same employees for pushing California to the brink of ruin.
To put this in historical perspective:
Nor did anyone in the media or government declare that the solution to such extortionate activity lay within the United States Department of Justice via RICO—the Federal Racketeer Influenced Corrupt Organizations Act.
Passed by Congress in 1970, this was originally aimed at the kingpins of the Mafia. Since the mid-1980s, however, RICO has been successfully applied against both terrorist groups and legitimate businesses engaged in criminal activity.
Under RICO, people financially injured by a pattern of criminal activity can bring a claim in State or Federal court, and obtain damages at three times the amount of their actual claim, plus reimbursement for their attorneys’ fees and costs.
Such prosecutions would have pitted energy-extortionists against the full investigative might of the FBI and the sweeping legal authority of the Justice Department.
Consider this selection from the opening of the Act:
(1) “racketeering activity” means (A) any act or threat involving…extortion; (B) any act which is indictable under any of the following provisions of title 18, United States Code: sections 891-894 (relating to extortionate credit transactions), section 1343 (relating to wire fraud)Section 1344 (relating to financial institution fraud), section 1951 (relating to interference with commerce, robbery, or extortion), section 1952 (relating to racketeering)….
With the 20th anniversary of Enron’s demise coming up, the mantra of “de-regulation” should be ruthlessly turned against those who have most ardently championed it.
Republicans have ingeniously dubbed the estate tax—which affects only a tiny minority of ultra-rich—“the death tax.” This makes it appear to affect everyone.
With the 2022 midterm elections fast approaching, Democrats should recast de-regulation thus:
“Greed Relief”
“Greed Protection”
“Legalized Extortion”
And here are some possible slogans:
“The Energy Industry: Giving You the Best Congress Money Can Buy.”
“De-regulation: Let Criminals Be Criminals.”
The coal industry has pumped millions into TV ads touting the non-existent wonders of “clean coal.” And Chevron has spent millions assuring us that all its profits go strictly toward making the world a better place for others. (Presumably not a penny is left for its altruistic executives.)
When faced with such outright lying by the most vested of financial interests, it’s well to recall the warning given by Niccolo Machiavelli more than 500 years ago:
All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it.
If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself. But time, which has been said to be the father of all truth, does not fail to bring it to light.
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