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PRESIDENTS: THE LOVED, THE FEARED AND THE IGNORED: PART THREE (END)

In Bureaucracy, History, Law Enforcement, Politics, Social commentary on May 28, 2021 at 12:13 am

American Presidents—like politicians everywhere–strive to be loved. There are two primary reasons for this.

First, even the vilest dictators want to believe they are virtuous—and that their goodness is rewarded by the love of their subjects.

Second, it’s universally recognized that a leader who’s beloved has greater clout than one who isn’t. 

PERCEIVED WEAKNESS INVITES CONTEMPT

But those—like Barack Obama—who strive to avoid conflict often get treated with contempt and hostility by their adversaries.

Obama standing with his arms folded and smiling.

Barack Obama

In Renegade: The Making of a President, Richard Wolffe chronicled Obama’s successful 2008 bid for the White House. Among his revelations:

Obama, a believer in rationality and decency, felt more comfortable in responding to attacks on his character than in attacking the character of his enemies.

A graduate of Columbia University and Harvard Law School, Obama was one of the most academically gifted Presidents in United States history.

Yet he failed to grasp and apply this fundamental lesson taught by Niccolo Machiavelli, the father of modern political science:

A man who wishes to make a profession of goodness in everything must inevitably come to grief among so many who are not good. And therefore it is necessary for a prince, who wishes to maintain himself, to learn how not to be good, and to use this knowledge and not use it, according to the necessity of the case.

This explains why Obama found most of his legislative agenda stymied by Republicans.

For example: In 2014, Senator Rand Paul (R-KY.) sought to block David Barron, Obama’s nominee to the First Circuit Court of Appeals.

Rand Paul

Paul objected to Barron’s authoring memos that justified the killing of an American citizen by a drone in Yemen on September 30, 2011.

The target was Anwar al-Awlaki, a radical Muslim cleric notorious on the Internet for encouraging Muslims to attack the United States.

Paul demanded that the Justice Department release the memos Barron crafted justifying the drone policy.

Anwar al-Awlaki

Imagine how Republicans would depict Paul—or any Democratic Senator—who did the same with a Republican President: “Rand Paul: A traitor who supports terrorists. He sides with America’s sworn enemies against its own lawfully elected President.”

But Obama did nothing of the kind.

(On May 22, 2014, the Senate voted 53–45 to confirm Barron to the First Circuit Court of Appeals.)

USING TOO MUCH FEAR CAN BACKFIRE

But Presidents—like Donald Trump—who seek to rule primarily by fear can encounter their own limitations. 

During a 2016 interview, he told legendary Washington Post reporter Bob Woodward: “Real power is—I don’t even want to use the word—fear.”

As both a Presidential candidate and President, Trump repeatedly used Twitter to attack hundreds of real and imagined enemies in politics, journalism, TV and films.

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.

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Donald Trump

The New York Times needed two full pages of its print edition to showcase them.

As President, he aimed outright hatred at President Obama. He spent much of his Presidency trying to destroy Obama’s signature legislative achievement: The Affordable Care Act, which provides access to medical care to millions of poor and middle-class Americans.

Trump also refused to reach beyond the narrow base of white, racist, ignorant, hate-filled, largely rural voters who had elected him.

And he bullied and insulted even White House officials and his own handpicked Cabinet officers. Trump:

  • Waged a Twitter-laced feud against Jeff Sessions, his Attorney General. Sessions’ “crime”? Recusing himself from investigations into well-established ties between Russian Intelligence agents and members of Trump’s Presidential campaign.
  • Repeatedly humiliated Chief of Staff, Reince Priebus—at one point ordering him to kill a fly that was buzzing about. On July 28, 2017, Priebus resigned.
  • Tongue-lashed Priebus’ replacement, former Marine Corps General John Kelly. Trump was reportedly angered by Kelly’s efforts to limit the number of advisers who had unrestricted access to him. Kelly told colleagues he had never been spoken to like that during 35 years of military service—and would not tolerate it again.

If Trump ever read Niccolo Machiavelli’s The Prince, he had clearly forgotten this passage:

“Cruelties ill committed are those which, although at first few, increase rather than diminish with time….Whoever acts otherwise….is always obliged to stand with knife in hand, and can never depend on his subjects, because they, owing to continually fresh injuries, are unable to depend upon him.”

And this one:

“Still, a prince should make himself feared in such a way that if he does not gain love, he at any rate avoids hatred.”

On that point alone, Trump proved an absolute failure. He not only committed outrages, he boasted about them. He aroused both fear and hatred.

Or, as Cambridge Professor of Divinity William Ralph Inge put it: “A man may build himself a throne of bayonets, but he can’t sit on it.”

Trump nevertheless tried—and paid the price for it. On November 3, 2020, 81,255,933 fed-up voters evicted him for former Vice President Joe Biden.

And despite committing a series of illegal actions to remain in office, he stayed evicted.

PRESIDENTS: THE LOVED, THE FEARED AND THE IGNORED: PART TWO (OF THREE)

In Bureaucracy, History, Law Enforcement, Politics, Social commentary on May 27, 2021 at 12:05 am

Is it better to be loved or feared?

That was the question Florentine statesman Niccolo Machiavelli raised more than 500 years ago.

Presidents have struggled to answer this question—and have come to different conclusions.

LOVE ME, FEAR MY BROTHER

Most people felt irresistibly drawn to John F. Kennedy (1961-63). Even his political foe, Henry Luce, the conservative publisher of Time, once said, “He makes me feel like a whore.”

But JFK could afford to bask in the love of others—because his younger brother, Robert, was the one who inspired fear.

Robert F. Kennedy and John F. Kennedy

He had done so as Chief Counsel for the Senate Rackets Committee (1957-59), grilling Mafia bosses and corrupt union officials—most notably Teamsters President James Hoffa.

Appointed Attorney General by JFK, he unleashed the FBI and the IRS on the Mafia. When the steel companies colluded in an inflationary rise in the price of steel in 1962, Bobby sicced the FBI on them.

In 1963, JFK’s cavorting with Ellen Rometsh threatened to destroy his Presidency. Rometsch, a Washington, D.C. call girl, was suspected by the FBI of being an East German spy.

With Republican Senators preparing to investigate the rumors, Bobby ordered Rometsch—a German citizen—deported immediately.

BEING LOVED AND FEARED

In the 1993 movie, A Bronx Tale, 17-year-old Calogero (Lillo Brancato) asks his idol, the local Mafia capo, Sonny (Chazz Palminteri): “Is it better to be loved or feared?”

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Sonny gives advice to his adopted son, Calogero

Sonny says if he had to choose, he would rather be feared. But he adds a warning straight out of Machiavelli: “The trick is not being hated. That’s why I treat my men good, but not too good.

“I give too much, then they don’t need me. I give them just enough where they need me, but they don’t hate me.”

Machiavelli, writing in The Prince, went further:

“Still a Prince should make himself feared in such a way that if he does not gain love, he at any rate avoids hatred, for fear and the absence of hatred may well go together.”

Many who quote Machiavelli in defense of being feared overlook this vital point: It’s essential to avoid becoming hated.

To establish a fearful reputation, a leader must act decisively and ruthlessly when the interests of the organization are threatened. Punitive action must be taken promptly and confidently.

One or two such actions can inspire more fear than a reign of terror.

In fact, it’s actually dangerous to constantly employ cruelties or punishments. Whoever does so, warns Machiavelli, “is always obliged to stand with knife in hand, and can never depend on his subjects, because they, owing to continually fresh injuries, are unable to depend upon him.”

The 20th century President who came closest to realizing Machiavelli’s “loved and feared” prince in himself was Ronald Reagan (1981-1989).

Always smiling, quick with a one-liner (especially at press conferences), seemingly unflappable, he projected a constantly optimistic view of his country and its citizens.

Ronald Reagan

In his acceptance speech at the 1980 Republican National Convention he declared: “[The Democrats] say that the United States…has passed its zenith. My fellow citizens, I utterly reject that view.”

But there was a steely, ruthless side to Reagan that appeared when he felt crossed.

On August 3, 1981, nearly 13,000 air traffic controllers walked out after contract talks with the Federal Aviation Administration collapsed. As a result, some 7,000 flights across the country were canceled on that day at the peak of the summer travel season.

Reagan branded the strike illegal. He threatened to fire any controller who failed to return to work within 48 hours.

On August 5, Reagan fired more than 11,000 air traffic controllers who hadn’t returned to work. The mass firing slowed commercial air travel, but it did not cripple the system as the strikers had forecast.

Reagan’s action stunned the American labor movement. Reagan was the only American President to have belonged to a union, the Screen Actors Guild. He had even been president of this—from 1947 to 1954.

There were no more strikes by Federal workers during Reagan’s tenure in office.

Similarly, Libya’s dictator, Moammar Kadaffi, learned that Reagan was not a man to cross.

On April 5, 1986, Libyan agents bombed a nightclub in West Berlin, killing three people, one a U.S. serviceman. The United States quickly learned that Libyan agents in East Germany were behind the attack.

On April 15, acting on Reagan’s orders, U.S. Air Force, Navy and Marine Corps bombers struck at several sites in Tripoli and Benghazi. Reportedly, Kaddafi himself narrowly missed becoming a casualty.

There were no more acts of Libyan terrorism against Americans for the rest of Reagan’s term.

PERCEIVED WEAKNESS INVITES CONTEMPT

American Presidents—like politicians everywhere–strive to be loved. There are two primary reasons for this.

First, even the vilest dictators want to believe they are good people—and that their goodness is rewarded by the love of their subjects.

Second, it’s universally recognized that a leader who’s beloved has greater clout than one who isn’t. 

But those—like Barack Obama—who strive to avoid conflict often get treated with contempt and hostility by their adversaries.

PRESIDENTS: THE LOVED, THE FEARED AND THE IGNORED: PART ONE (OF THREE)

In Bureaucracy, History, Law Enforcement, Politics, Social commentary on May 26, 2021 at 12:25 am

In 1513, Niccolo Machiavelli, the father of political science, wrote his infamous book, The Prince. This may well be its most-quoted part:

“From this arises the question whether it is better to be loved than feared, or feared more than loved. The reply is, that one ought to be both feared and loved, but as it is difficult for the two to go together, it is much safer to be feared than loved. 

“For it may be said of men in general that they are ungrateful, voluble, dissemblers, anxious to avoid danger and covetous of gain. As long as you benefit them, they are entirely yours….when the necessity is remote, but when it approaches, they revolt.

“And the prince who has relied solely on their words, without making other preparations, is ruined. For the friendship which is gained by purchase and not through grandeur and nobility of spirit is bought but not secured, and at a pinch is not to be expended in your service. 

“And men have less scruple in offending one who makes himself loved than one who makes himself feared. For love is held by a chain of obligations which, men being selfish, is broken whenever it serves their purpose. But fear is maintained by a dread of punishment which never fails.”

Portrait of Niccolò Machiavelli by Santi di Tito.jpg

Niccolo Machiavelli

So—which is better: To be feared or loved?

In the 1993 film, A Bronx Tale, 17-year-old Calogero (Lillo Brancato) poses that question to his idol, the local Mafia capo, Sonny (Chazz Palminteri).

“That’s a good question,” Sonny replies. “It’s nice to be both, but it’s very difficult. But if I had my choice, I would rather be feared.

“Fear lasts longer than love. Friendships that are bought with money mean nothing. You see how it is around here. I make a joke, everybody laughs. I know I’m funny, but I’m not that funny. It’s fear that keeps them loyal to me.”

Presidents face the same dilemma as Mafia capos—and resolve it in their own ways.

LOVE ME BECAUSE I NEED TO BE LOVED

Bill Clinton (1993-2001) believed that he could win over his self-appointed Republican enemies through his sheer charm.

Part of this lay in self-confidence: He had won the 1992 and 1996 elections by convincing voters that “I feel your pain.”

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Bill Clinton

And part of it lay in his need to be loved. He once said that if he were in a room with 100 people and 99 of them liked him but one didn’t, he would spend all his time with that one person, trying to win him over.

But while he could charm voters, he could not bring himself to retaliate against his sworn Republican enemies.

On April 19, 1995, Right-wing terrorist Timothy McVeigh drove a truck–packed with 5,000 pounds of ammonium nitrate and nitromethane–to the front of the Alfred P. Murrah Federal Building in Oklahoma City.

The explosion killed 168 people, including 19 children in the day care center on the second floor, and injured 684 others.

Suddenly, Republicans were frightened. Since the end of World War II, they had vilified the very Federal Government they belonged to. They had deliberately courted the Right-wing militia groups responsible for the bombing.

So Republicans feared Clinton would now turn their decades of hate against them.

They need not have worried. On April 23, Clinton presided over a memorial service for the victims of the bombing. He gave a moving eulogy—without condemning the hate-filled Republican rhetoric that had at least indirectly led to the slaughter.

Clinton further sought to endear himself to Republicans by:

  • Adopting NAFTA—the Republican-sponsored North American Free Trade Act, which later proved so devastating to American workers;
  • Siding with Republicans against poor Americans on welfare; and
  • Championing the gutting of the Depression-era Glass-Steagall law, which barred investment banks from commercial banking activities.

The result: Republicans believed Clinton was weak—and could be rolled.

In 1998, House Republicans moved to impeach him over a sex scandal with White House intern Monica Lewinsky. But his Presidency survived when the Senate refused to convict.

LOVE ME BECAUSE I’LL HURT YOU IF YOU DON’T

Lyndon Johnson (1963-1969) wanted desperately to be loved.

Once, he complained to Dean Acheson, the former Secretary of State under Harry S. Truman, about the ingratitude of American voters. He had passed far more legislation than his predecessor, John F. Kennedy, and yet Kennedy remained beloved, while he, Johnson, was not.

Why was that? Johnson demanded.

“You are not a very likable man,” said Acheson truthfully.

Image result for Images of Lyndon B. Johnson

Lyndon B. Johnson

Johnson tried to force his subordinates love him. He would humiliate a man, then give him an expensive gift—such a Cadillac. It was his way of binding the man to him.

He was on a first-name basis with J. Edgar Hoover, the longtime director of the FBI. He didn’t hesitate to request—and get—raw FBI files on his political opponents.

On at least one occasion, he told members of his Cabinet: No one would dare walk out on his administration—because if they did, two men would follow their ass to the end of the earth: Mr. J. Edgar Hoover and the head of the Internal Revenue Service.

DE-REGULATION: LET PREDATORS BE PREDATORS

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.

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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.

Seal of the United States Department of Justice.svg

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.

THE RICH–AND THEIR EVILS–ARE WITH YOU ALWAYS

In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on May 14, 2021 at 12:55 am

In November, 2017, President Donald Trump and a Republican-dominated House and Senate rammed the Tax Cuts and Jobs Act of 2017 through Congress. It became law on December 22, 2017.  

The law: 

  • Ignored the stagnation of working-class wages and exacerbated inequality;
  • Weakened revenues when the nation needed to raise more;
  • Encouraged rampant tax avoidance and gaming that will undermine the integrity of the tax code;
  • Left behind low- and moderate-income Americans—and in many ways hurt them.

For American corporations, however, the law was a godsend: 

  • Cutting the corporate tax rate from 35 to 21 percent;
  • Shifting toward a territorial tax system, where multinational corporations’ foreign profits go largely untaxed;
  • Benefitting overwhelmingly wealthy shareholders and highly paid executives.

In 1513, Niccolo Machiavelli, the Florentine statesman who has been called the father of modern political science, published his best-known work: The Prince.

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Niccolo Machiavelli

Among the issues he confronted was how to preserve liberty within a republic. And key to this was mediating the eternal struggle between the wealthy and the poor and middle class.

Machiavelli deeply distrusted the nobility because they stood above the law. He saw them as a major source of corruption because they could buy influence through patronage, favors or nepotism.

Successful political leaders must attain the support of the nobility or general populace. But since these groups have conflicting interests, the safest course is to choose the latter.  

Writes Machiavelli:

….He who becomes prince by help of the [wealthy] has greater difficulty in maintaining his power than he who is raised by the populace. He is surrounded by those who think themselves his equals, and is thus unable to direct or command as he pleases. 

But one who is raised to leadership by popular favor finds himself alone, and has no one, or very  ew, who   are not  ready  to  obey him. [And] it is impossible to satisfy the [wealthy] by fair dealing and without inflicting injury upon others, whereas it is very easy to satisfy the mass of the people in this way. 

Machiavelli warns that the general populace is more honest than the nobility–i-.e., wealthy. The wealthy seek to oppress, while the populace wants to simply avoid oppression.

A political leader cannot protect himself against a hostile population, owing to their numbers, but he can against the hostility of the great, as they are but few.

The worst that a prince has to expect from a hostile people is to be abandoned, but from hostile nobles he has to fear not only desertion but their active opposition. And as they are more far seeing and more cunning, they are always in time to save themselves and take sides with the one who they expect will conquer. 

One…who becomes prince by favor of the populace, must maintain its friendship, which he will find easy, the people asking nothing but not to be oppressed. 

But one who against the people’s wishes becomes prince by favor of the nobles, should above all endeavor to gain the favor of the people.  This will be easy for him if he protects them.  

In 2020, Tax Justice Network, which campaigns to abolish tax havens, commissioned a study of their effect on the world’s economy.

The study was entitled, “The State of Tax Justice 2020.” 

May be an image of 6 people and text that says 'SO YOU WANT THE GOVERNMENT TO "STOP GIVING POOR PEOPLE FREE STUFF"? FUNNY HOW YOU DON'T CARE ABOUT THE $70 BILLION A YEAR WE SPEND ON SUBSIDIZING WALL ST BANKS, THE $38 BILLION IN SUBSIDIES GIVEN TO OIL COMPANIES, THE $2.1 TRILLION THAT FORTUNE 500 CORPORATIONS ARE STASHING ABROAD TO AVOID PAYING U.S. TAXES, AND THE $153 BILLION A YEAR WE SPEND TO SUBSIDIZE MCDONALD'S & WALMART'S OW-WAGE WORKERS? OCCUPY DEMOCRATS'

The research was carried out by James Henry, former chief economist at consultants McKinsey & Co.  Among its findings: 

  • Countries lose over $427 billion in tax each year to international corporate tax abuse and private tax evasion.
  • More tax is lost to tax havens ever year due to corporate tax abuse by multinational corporations than by individuals.
  • Multinational corporations short-change countries out of $245 billion in tax every year.
  • People who move their wealth offshore short-change their governments out of $182 billion in taxes every year.
  • Almost all responsibility for global tax losses falls on higher income countries.
  • Higher income countries were responsible for 98 per cent of all the tax loss countries around the world lost.

The report recommended: 

  • Governments should introduce an excess profit tax on large multinational corporations which have profited during the pandemic while local businesses were forced into lockdown.
  • Digital tech giants claim to have our best interests at heart but have been short-changing us out of billions in tax for years.
  • Governments should introduce a wealth tax to reign in the billions in tax lost to tax havens every year.
  • Establish a UN tax convention that makes sure robust international tax standards are set in a transparent and democratic way.

Fortunately, Machiavelli has supplied timeless remedies to this increasingly dangerous situation:

  • Assume evil among men—and most especially among those who possess the greatest concentration of wealth and power.
  • Carefully monitor their activities—the way the FBI now regularly monitors those of the Mafia and major terrorist groups.
  • This means using bugs, wiretaps and informants—and, above all, assuming that powerful men dedicated to their own greed will inevitably become criminals.
  • Ruthlessly prosecute the treasonous crimes of the rich and powerful—and, upon their conviction, impose severe punishment.

MACHIAVELLI VS. THE IRS

In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on August 7, 2020 at 12:10 am

More than 500 years ago, the Florentine statesman, Niccolo Machiavelli, warned: A prince…must imitate the fox and the lion, for the lion cannot protect himself from traps, and the fox cannot defend himself from wolves.  One must therefore be a fox to avoid traps, and a lion to frighten wolves. Those who wish to be only lions do not realize this. 

And never is the need greater to imitate the fox than when dealing with the Internal Revenue Service (IRS).

Several years ago, a private investigative agency found itself in serious trouble with that agency.

One of its employees had suddenly quit the company—leaving behind a major financial disaster.

That employee—whom I’ll call Pete—had been tasked with sending payroll tax records to the IRS. The company’s owner, Bill, assumed he had carried out his assignment.

Until he learned from the IRS that they had never received the records.

Consider the potential consequences:

  • Failing to timely and properly pay federal payroll taxes results in an automatic penalty of 2% to 10%.
  • Similar state and local penalties apply.
  • Failing to properly file monthly or quarterly returns may result in additional penalties.
  • Failing to file W-2 Forms results in an automatic penalty of up to $50 per form not timely filed.
  • A particularly severe penalty applies where federal income tax withholding and Social Security taxes are not paid to the IRS.
  • The penalty of up to 100% of the amount not paid can be assessed against the employer entity as well as any person (such as a corporate officer) having control or custody of the funds from which payment should have been made.

About 70% of the annual revenue collected by the IRS comes from payroll taxes. Under-reported and unpaid employment taxes account for about $72 billion of the United States tax gap. So the IRS makes the collection of payroll taxes a high priority.

No doubt about it—Bill was facing serious trouble.

Sales/Use Tax Alert | Green NRG Institute

What to do?  

Fortunately, Steve, one of Bill’s employees, had a B.A. in Communications and had worked as a newspaper reporter.

When Bill told him of the calamity he was facing, Steve offered his best advice: Immediately contest the charge that he had been delinquent in providing the records. And explain to the IRS—in writing—what had happened.  

Bill agreed.

First,  Steve interviewed him at length to make certain he fully understood the circumstances leading up to his present crisis. 

Then Steve sat down and typed up a letter—on office letterhead stationery—-to the IRS. Letterhead would give it an official appearance—and Steve wanted every advantage he could get.

Steve offered a straightforward presentation of what had happened: Pete, the number-two man in the company, had been entrusted with submitting payroll tax records to the IRS. But, nursing a grudge against his employer, he had dumped the records in a box and stashed this in a locked filing cabinet.

Then he had given notice and left the company.  Later, an investigation of the office turned up the records—as well as the revelation that Pete had often used his office computer to access pornography.

In his letter, Steve emphasized that Bill’s company had previously had an unblemished record for meeting its payroll tax obligations on time. And he stated that the newly-found records had been sent to the IRS by registered mail.

Finally, Steve wrote that Bill was prepared to fully meet his financial obligations  to the IRS. But he asked that Bill not be penalized for the irresponsible actions of a single, disgruntled employee.

The result? 

Bill ended up paying only those monies that he legally owed.  He was not forced to pay a penalty.

So what are the lessons to be learned from this episode?

  • In dealing with an agency as powerful as the IRS, don’t ignore its letters. 
  • You have nothing to gain by pretending it will go away.  It won’t.
  • If you owe money, don’t deny it. 
  • Remain calm, even if you feel angry or afraid. 
  • Don’t use profanity or insults. 
  • Don’t try to play tough-guy with the IRS.  Even the Mafia fears this agency.
  • And with good reason: Al Capone didn’t go to prison for murder or bootlegging. He went away for income tax evasion.

  • If you have a legitimate reason for having missed a payment, say so. 
  • Remember that everything you say to the IRS—verbally or in writing—is considered evidence given under oath. 
  • If you lie and get caught, you can face perjury charges as well as those for failing to comply with tax laws.
  • Offer to fully pay any monies that you legally owe.
  • If these amount to more than you can meet in a single payment, say so. Ask the agency to set up a plan by which you can pay it off in installments.
  • If the agency balks at cooperating with you, contact a veteran tax accountant or attorney.
  • The best accountants or attorneys for dealing with the IRS are former agents now working in private practice. They not only know the tax laws; they know the best ways to short-circuit an IRS audit and/or penalties.

A REALISTIC PORTRAYAL OF POLICE CORRUPTION—AND JUSTICE

In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on July 29, 2020 at 1:19 pm

Almost 40 years later, “Prince of the City” remains that rarity—a movie about big-city police that:

  • Tells a dramatic (and true) story; and
  • Offers serious truths about how police and prosecutors really operate. 

Released in 1981, it’s based on the real-life case of NYPD Detective Robert Leuci (“Danny Ciello” in the film). 

Robert Leuci (“Danny Ciello” in “Prince of the City”)

A member of the elite Special Investigating Unit (SIU) targeting high-level narcotics dealers, Ciello (played by Treat Williams) volunteers to work undercover against rampant corruption among narcotics agents, attorneys and bail bondsmen. 

His motive appears simple: To redeem himself and the NYPD from the corruption he sees everywhere: “These people we take from own us.” 

His only condition: “I will never betray cops who’ve been my partners.” 

And Assistant U.S. Attorney Rick Cappalino assures Ciello: “We’ll never make you do something you can’t live with.” 

As the almost three-hour movie unfolds, Ciello finds—to his growing dismay—that there are a great many things he will have to learn to live with. 

Treat Williams as “Danny Ciello”

Although he doesn’t have a hand in it, he’s appalled to learn that Gino Moscone, a former buddy, is going to be arrested for taking bribes from drug dealers. 

Confronted by a high-ranking agent for the Federal Drug Enforcement Agency, Moscone refuses to “rat out” his buddies. Instead, he puts his service revolver to his head and blows out his brains.  

Ciello is devastated, but the investigation—and film—must go on. 

Along the way, he’s suspected by a corrupt cop and bail bondsman of being a “rat” and threatened with death. 

He’s about to be wasted in a back alley when his cousin—a Mafia member—suddenly intervenes. The Mafioso tells Ciello’s would-be killers: “You’d better be sure he’s a rat, because people like him.”

At which point, the grotesquely fat bail bondsman—who has been demanding Ciello’s execution—pats Danny on the arm and says, “No hard feelings.”

It is director Sidney Lumet’s way of graphically saying: “Sometimes the bad guys can be good guys—and the good guys can be bad guys.”

Prince Of The City folded.jpg

Lumet makes it clear that police don’t always operate with the Godlike efficiency of cops in TV and films. It’s precisely because his Federal backup agents lost him that Ciello almost became a casualty.  

In the end, Ciello becomes a victim of the prosecutorial forces he has unleashed.  Although he’s vowed to never testify against his former partners, Ciello finds this is a promise he can’t keep.

Too many of the cops he’s responsible for indicting have implicated him of similar—if not worse—behavior. He’s even suspected of being involved in the theft of 450 pounds of heroin (“the French Connection”) from the police property room.

A sympathetic prosecutor—Mario Vincente in the movie, Rudolph Giuliani in real-life—convinces Ciello that he must finally reveal everything he’s done.

Ciello had originally claimed to have done “three things” as a corrupt narcotics agent. By the time his true confessions are over, he’s admitted to scores of felonies.

Ciello then tries to convince his longtime SIU partners to do the same. One of them commits suicide.  Another tells Ciello to screw himself:  “I’m not going to shoot myself and I’m not going to rat out my friends.”

To his surprise, Ciello finds himself admiring his corrupt former partner for being willing to stand up to the Federal case-agents and prosecutors demanding his head.

The movie ends with a double dose of irony.

First: Armed with Ciello’s confessions, an attorney whom Ciello had successfully testified against appeals his conviction. But the judge rules Ciello’s admitted misdeeds to be “collateral”—apart from the main evidence in the case—and affirms the conviction.

Second: Ciello is himself placed on trial—-of a sort. A large group of assistant U.S. attorneys gathers to debate whether their prize “canary” should be indicted. If he is, his confessions will ensure his conviction.

Some prosecutors argue forcefully that Ciello is a corrupt law enforcement officer who has admitted to more than 40 cases of perjury—among other crimes. How can the government use him to convict others and not address the criminality in his own past?

Other prosecutors argue that Ciello voluntarily risked his life—physically and professionally—to expose rampant police corruption. He deserves a better deal than to be cast aside by those who have made so many cases through his testimony.

Eventually, the U.S. Attorney for the Southern District of New York makes his decision: “The government declines to prosecute Detective Daniel Ciello.”

It is Lumet’s way of showing that the decision to prosecute is not always an easy or objective one.

The movie ends with Ciello now teaching surveillance classes at the NYPD Academy. 

A student asks: “Are you the Detective Ciello?”

“I’m Detective Ciello.”

“I don’t think I have anything to learn from you.”  And he walks out.

Is Danny Ciello a hero, a villain, or some combination of the two? It’s with this ambiguity that the film ends—an ambiguity that infuses America’s clearly hopeless “war on drugs.”

RFK: FIGHTING THE EVIL OF THE MAFIA–AND THE EVIL OF POVERTY

In Bureaucracy, History, Politics, Social commentary on June 5, 2020 at 12:08 am

Fifty-two years ago, the Reverend Martin Luther King was shot to death as he stood on a balcony in Memphis, Tennessee. He had come there to lead a march of striking garbage workers.

New York United States Senator—and now Presidential candidate—Robert Francis Kennedy had been scheduled to give a speech in Indianapolis, Indiana, before a black audience.

Just before he drove into the city to deliver his address, he learned of King’s assassination. There was a real danger that rioting would erupt. Police who had been assigned to protect him said they wouldn’t accompany him into the inner city.

Kennedy drove off anyway, leaving behind his police escort.

Standing on a podium mounted on a flatbed truck, Kennedy spoke for just four minutes and 57 seconds.

His waiting audience hadn’t yet learned of King’s death. Kennedy broke the news to gasps, and then gave an impromptu speech eulogizing the slain civil rights leader.

For the first time since the assassination of his brother, President John F. Kennedy, in 1963, he spoke publicly of that killing. He noted that JFK—like King—had also been killed by a white man.

And he called upon the crowd to “dedicate ourselves to what the Greeks wrote so many years ago: to tame the savageness of man and to make gentle the life of this world.”

Riots erupted in 60 cities following King’s death—but not in Indianapolis.

During the mid- and late 1960s, Robert Kennedy aroused passions of an altogether different sort from those aroused by Donald Trump.

Kennedy had been a United States Attorney General (1961-1964) and Senator from New York (1964-1968). But it was his connection to his beloved and assassinated brother, President John F. Kennedy, for which he was best known.

In October, 1962, during the Cuban Missile Crisis, his wise counsel helped steer America from the brink of nuclear war with the Soviet Union. As a U.S Senator he championed civil rights and greater Federal efforts to fight poverty.

Robert F. Kennedy campaigning for President

Millions saw RFK as the only candidate who could make life better for America’s impoverished—while standing firmly against those who threatened the Nation’s safety.

As television correspondent Charles Quinn observed: “I talked to a girl in Hawaii who was for [George] Wallace [the segregationist governor of Alabama]. And I said ‘Really?’ [She said] ‘Yeah, but my real candidate is dead.’

“You know what I think it was? All these whites, all these blue collar people who supported Kennedy…all of these people felt that Kennedy would really do what he thought best for the black people, but, at the same time, would not tolerate lawlessness and violence.

“They were willing to gamble…because they knew in their hearts that the country was not right. They were willing to gamble on this man who would try to keep things within reasonable order; and at the same time do some of the things they knew really should be done.”

Campaigning for the Presidency in 1968, RFK had just won the crucial California primary on June 4—when he was shot in the back of the head.

His killer: Sirhan Sirhan, a young Palestinian furious at Kennedy’s support for Israel.

Kennedy died at 1:44 a.m. on June 6.  He was 42.

On June 8, 1,200 men and women boarded a specially-reserved passenger train at New York’s Pennsylvania Station. They were accompanying Kennedy’s body to its final resting place at Arlington National Cemetery.

As the train slowly moved along 225 miles of track, throngs of men, women and children lined the rails to pay their final respects to a man they considered a genuine hero.

Little Leaguers clutched baseball caps across their chests. Uniformed firemen and policemen saluted. Burly men in shirtsleeves held hardhats over their hearts. Black men in overalls waved small American flags. Women from all levels of society stood and cried.

A nation says goodbye to Robert Kennedy

Commenting on RFK’s legacy, historian William L. O’Neil wrote in Coming Apart: An Informal History of America in the 1960′s:

“…He aimed so high that he must be judged for what he meant to do, and, through error and tragic accident, failed at….He will also be remembered as an extraordinary human being who, though hated by some, was perhaps more deeply loved by his countrymen than any man of his time.

“That too must be entered into the final account, and it is no small thing. With his death something precious disappeared from public life.”

America has never again seen a Presidential candidate who combined toughness on crime and compassion for the poor.

Republican candidates have waged war on crime—and the poor. And Democratic candidates have moved to the Right in eliminating anti-poverty programs.

RFK had the courage to fight the Mafia—and the compassion to fight poverty. At a time when Americans long for candidates to give them positive reasons for voting, his kind of politics are sorely missed.

ARROGANT EMPLOYERS MEET LYING JOB-SEEKERS: PART TWO (END)

In Bureaucracy, History, Law, Politics, Social commentary on April 27, 2020 at 5:51 am

Until recently, only organized crime witnesses with a price on their head could obtain falsified job histories.  But no more.

Thousands—if not millions—of job-seeking Americans are now able to obtain stellar job references to impress potential employer.  And they’re doing it the unconventional way: They’re hiring companies to create them.

One such company is CareerExcuse.

CareerExcuse runs 200 fictional companies that don’t exist, have staffs or make money.

But for a fee, you can say you worked at one of them, and they’ll confirm you were an outstanding employee.

For between $100 and $200, you’ll get:

  • One to three false—and positive—references from a company or companies you’ve never worked for.
  • A fake company address.
  • Local phone numbers to give to prospective employers.
  • A guarantee that those employers will receive positive vouchers for you.
  • “Instant” degrees.
  • Landlord reference
  • A “completely legitimate” resume-writing service.

Unlike the Federal Witness Security Program (WITSEC) the clients of CareerExcuse aren’t hardened criminals.

They are legitimate citizens trying to erase gaps in their resumes. Or they have worked for a long series of short-term employers and want to appear a stable employee.

Click here: CareerExcuse Job References

Or they’ve acquired–deservedly or not–a series of bad job references 

Image result for images of resumes

“Some people see it as unethical,” Jennifer Hatton, senior partner at CareerExcuse, said in a 2015 interview with Business Insider.

But, said Hatten, “I don’t see why you shouldn’t deserve a shot, just like the next person” if you do have the skills and experience required.

“There are many things that happen in people’s lives, with [employers] going out of business, being laid off, managers just unrightfully firing you, sexual harassment suits—-you name it, it happens in the workforce.”

And it’s true.

An article in the March, 2011 issue of Reader’s Digest gives the lie to the excuses so many employers use for refusing to hire.

Entitled “22 Secrets HR Won’t Tell You About Getting a Job,” it reveals such truths as:

  • After you’re unemployed more than six months, employers consider you unemployable—no matter your skills/experience. 
  • It’s not what but who you know that counts.
  • Cover letters are often ignored, going directly into “the round file.”
  • Many employers illegally try to screen out parents—such as by checking cars for child safety seats.
  • You’re not protected against age discrimination. Many employers regularly ignore the law. If you are in your 50s or 60s, leave your year of graduation off your resume.

And in its June 8, 2011 cover-story on “What U.S. Economic Recovery?  Five Destructive Myths,” Time magazine warned that profit-seeking corporations can’t be relied on to ”make it all better.”

Wrote Rana Foroohar, Time‘s assistant managing editor in charge of economics and business:

“There may be $2 trillion sitting on the balance sheets of American corporations globally, but firms show no signs of wanting to spend it in order to hire workers at home.”

Meanwhile, CareerExcuse claims to have more than 2,000 job-seeking clients.

“Our main clientele right now is IT executives, and they’re pretty high-level,” Hatton claimed. The average customer seeks a salary of $60,000 to $80,000.

There are areas of employment that CareerExcuse refuses to fill—medicine, government, law enforcement or government. Jobs where your employment would “put other people in danger,” said Hatten. These are also employers capable of conducting serious background investigations.

Hatton claimed that during the almost two years she had been with CareerExcuse, no one had ever discovered a faked background.

But William Schmidt, who founded the company, admitted to Motherboard that a fake reference could easily be punctured: “All it would take is one person to drive to that address and go to that office.”

And the inevitable result would be immediate termination.

For some users of CareerExcuse, the company has proven an infuriating disappointment.

Click here: 17 CAREER EXCUSE complaints and reports @ Pissed Consumer

Like many clients of the Federal Witness Security Program, they complain of promises not kept. Among their complaints on Pissed Consumer, a consumer-complaint website:

  • “When a serious job opportunity came recently, I realized alot of loop holes in their services, address of company on the website was different, email addresses weren’t valid or active.”
  • “They took my $ and never returned my calls or emails.What a joke!”
  • “Their phone go to voice mail and they dont reply back to calls after a voice mail is left for them to reply …It is easy for the employer to know that the reference is fake.”
  • “When the prospective employers called, Career excuse answered the phone with ‘Career Excuse, how can I help you.’ They were supposed to answer the phone in the name of the fake company they put together.”
  • “They only gave me a cheap looking web page and they don’t even answer the phones to GIVE the service I payed for. They are a scam and complete rip-off.”

Throughout the United States, countless numbers of lazy, greedy, arrogant and/or incompetent employers are refusing to hire. And millions of willing-to-work Americans remain trapped in unemployment or under-employment as a result.

Until this situation changes, companies like CareerExcuse will continue to function—and proliferate.

Such a change isn’t going to happen tomorrow.

ARROGANT EMPLOYERS MEET LYING JOB-SEEKERS: PART ONE (OF TWO)

In Bureaucracy, History, Law, Politics, Social commentary on April 24, 2020 at 12:17 am

In 1966, the U.S. Department of Justice did something it had never before done: Protect a witness against the Mafia during trial, and then relocate him (and his family) to safety under a new identity.

That witness was Joseph “The Animal” Barboza.  Once the most-feared enforcer for the New England Mafia family of Raymond Patriarca, Barboza had run afoul of his boss.

With a mob contract out on him, Barboza felt he had nothing to lose by telling FBI agents and Federal prosecutors everything they wanted to know about the Boston Mafia.

Related image

Joseph Barboza

A 16-man security detail of deputy U.S. marshals was immediately assigned to Barboza. The marshals relocated him to Thatcher’s Island, off the coast of Gloucester, Massachusetts. There they foiled two attempts by the mob to kill Barboza with a telescopic-sighted rifle.

Through a series of trials, Barboza sent the top echelons of the Patriarca family—including Patriarca himself—to prison. Then he and his wife and daughter were outfitted with new names and shipped out of New England to begin life over in safety.

The success of the Barboza detail led other Mafia witnesses to come forward. And this, in turn, led to the official creation of the Witness Security Program (WITSEC) by the Organized Crime Control Act of 1970.

To date, the U.S. Marshals Service—which runs WITSEC—has successfully protected, relocated and given new identities to more than 8,500 witnesses and 9,900 of their family members.

Click here: U.S. Marshals Service, Witness Security Program.

It’s been the “new identities” part of the Program that has always attracted the most attention from the press and movie-makers.

Staged photograph of a WITSEC detail

In the early days of WITSEC, a handful of security Inspectors created these in a totally haphazard fashion. These included legal name-changes, Social Security card, driver’s licenses and falsified job histories.

In some cases, marshals would tell prospective employers, “We can vouch for this man’s skills as a(n) ———-, but that’s all we can tell you.”

Witnesses’ children were provided with fictitious school records.  The names of schools would be changed, but the actual grades earned by the children would be retained.

These records would be “backstopped”—supported with documentation placed at those institutions where the witness (or his family) was alleged to have worked or attended school.

Similarly, medical records for witnesses and their children would be partially falsified. That is, names of hospitals they had obtained care in would be changed, but their actual medical histories would be accurately charted.

Since the 1990s, the Marshals Service has centralized its “re-documentation” program. Parents, spouses, children, siblings and even mistresses are all taken to an orientation center in a Washington suburb

Related image

There, witnesses are debriefed by Federal agents and prosecutors.  They—and their families—are also prepared for the new lives they’ll take on under new identities.

In the early years of the program, witnesses were provided with flimsy aliases that quickly collapsed under even light scrutiny.

In 1973, Gerald Martin Zelmanowitz, a convicted stock swindler, found his new identity of Paul J. Maris easily punctured.

He got into a legal dispute with Creative Capitol, an investment firm that had loaned $2 million to his struggling new business,”The Paul Maris Company.”

Creative Capitol’s president, Milton Stewart, ordered a quiet investigation into Maris’ background.

This quickly turned up the following:

  • Maris and all five members of his family had been issued sequential Social Security numbers.
  • There was no record of Maris’ birth certificate.
  • Maris had claimed a background in Army Intelligence, but his Army service number had never been issued.
  • Maris’ resume said he had attended John Bartram High School in Philadelphia and Baldwin Wallace College in Berea, Ohio.  But officials at both schools denied that he had ever been one of their students.
  • Maris’ alleged home address in Philadelphia turned out to be a vacant lot in an all-black neighborhood.

Finally, the private investigator discovered that Maris had testified against a Angelo “Gyp” DeCarlo, a notorious New Jersey Mafia chieftain.  His testimony had convicted DeCarlo for murder conspiracy.

Fearing for his life, Maris fled with his family from San Francisco. All of them were readmitted to the Witness Security Program and relocated under new identities.

Until recently, only organized crime witnesses with a price on their head could obtain falsified job histories.  But no more.

Thousands—if not millions—of job-seeking Americans are now able to obtain stellar job references to impress potential employers.

CareerExcuse runs 200 fictional companies that don’t exist, have staffs or make money.

But for a fee, you can say you worked at one of them, and they’ll confirm you were a stellar employee while you were there.

For between $100 and $200, you’ll get

  • One to three false—and positive—references from a company or companies you’ve never worked for.
  • A fake company address.
  • Local phone numbers to give to prospective employers.
  • A guarantee that those employers will receive positive vouchers for you.
  • A “completely legitimate” resume-writing service.

Unlike WITSEC, the clients of CareerExcuse aren’t hardened criminals. They are legitimate citizens trying to erase gaps in their resumes.  Or they have worked for a long series of short-term employers and want to appear a stable employee.

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