As it turns out, Hillary Clinton and Donald Trump share something pertinent in common, after all — a tax haven cozily nested inside the United States.
This brick-and-mortar, nondescript two-story building in Wilmington, Delaware would be awfully crowded if its registered occupants — 285,000 companies — actually resided there. What’s come to be known as the “Delaware loophole” — the unassuming building at 1209 North Orange Street — has become, as the Guardian described, “famous for helping tens of thousands of companies avoid hundreds of millions of dollars in tax.”
Reportedly dozens of Fortune 500 companies — Coca-Cola, Walmart, American Airlines, and Apple, to name a few — use Delaware’s strict corporate secrecy laws and legal tax loopholes by registering the North Orange Street address for official business.
“Big corporations, small-time businesses, rogues, scoundrels, and worse — all have turned up at the Delaware address in hopes of minimizing taxes, skirting regulations, plying friendly courts or, when needed, covering their tracks,” the New York Times’ Leslie Wayne described in 2012. “It’s easy to set up shell companies here, no questions asked.”
While the legitimacy of taxes as a concept may be up to personal interpretation, what matters in Clinton’s use of the so-called Delaware loophole, in particular, is her constant harping on the need for corporations and elite individuals to pay their fair share. In other words, Clinton’s employment of North Orange Street amounts to a telling, Do As I Say, Not As I Do. And, as the Guardian notes, both of “the leading candidates for president – Hillary Clinton and Donald Trump – have companies registered at 1209 North Orange, and have refused to explain why.”
As Rupert Neate explained for the Guardian, being registered in the tiny state allows “companies to legally shift earnings from other states to Delaware, where they are not taxed on non-physical incomes generated outside of state.”
In fact, some have claimed — all revelations of Panamanian documents aside — the use of tax-friendly locations inside the U.S. makes it the biggest tax haven in the world, with Delaware, alone, costing other states some $9 billion in lost taxes over the past decade. Clinton has repeatedly touted the needs for tax transparency and to shut down foreign havens with similar loopholes.
“Some of you may have just heard about these disclosures about outrageous tax havens and loopholes and superrich people across the world are exploiting in Panama and elsewhere,” Clinton told the Pennsylvania AFL-CIO annual Constitutional Convention earlier this month. “We are going after all these scams and make sure everyone pays their fair share here in America.”
Oh, the irony.
According to Neate, a Clinton spokesman explained, “ZFS [Holdings, LLC] was set up when Secretary Clinton left the State Department as an entity to manage her book and speaking income. No federal, state, or local taxes were saved by the Clintons as a result of this structure.”
Why, if what the spokesman claims to be true, would Clinton bother using an address in Delaware?
Of the 515 companies Trump officially registered with the Federal Election Commission, “We have 378 entities registered in the state of Delaware,” the billionaire told the Guardian, “meaning I pay you a lot of money, folks. I don’t feel guilty at all, OK?”
Delaware’s incredibly business-friendly structure that allows for such a crowded address is completely legal, though the ability to create shell corporations lends to shady dealings and is “a magnet … which individuals and corporations can use to evade an inestimable amount in federal and foreign taxes,” as a report by the Institute on Taxation and Foreign Policy has described.
Still, Clinton’s constant moralizing on tax transparency — and her spokesperson’s claims she hasn’t benefited from the North Orange Street address — proves, yet again, her stances offer little in the way of a solid foundation.
Using an “opaque and secretive network” of subsidiaries in tax havens, top American corporations have stashed $1.4 trillion offshore, a new report from Oxfam shows.
With “a range of tricks, tools, and loopholes,” for tax avoidance, the 50 largest U.S. companies, including well-known names like Goldman Sachs, Verizon Communications, Apple, Coca-Cola, IBM, and Chevron, raked in $4 trillion in profits globally between 2008 and 2014, are contributing to inequality, the anti-poverty group said.
The report, Broken at the Top (pdf), states that such tax dodging is one of the “profit-making strategies of many multinational corporations.”
As noted in the report,
From 2008 – 2014 the 50 largest U.S. companies collectively received $27 in federal loans, loan guarantees and bailouts for every $1 they paid in federal taxes.
From 2008 – 2014 these 50 companies spent approximately $2.6 billion on lobbying while receiving nearly $11.2 trillion in federal loans, loan guarantees and bailouts.
Explaining part of their strategy to lower their overall tax rate, the report states: “As a group, U.S. multinationals report that 43 % of their foreign earnings come from five tax haven jurisdictions, yet these countries accounted for only 4 % of the companies’ foreign workforces and just 7 % of their foreign investment.”
Take Bermuda, for example. The report states that U.S. companies reported $80 billion of profits in 2012 in the archipelago—but that’s more than the companies’ reported profits in Japan, China, Germany, and France combined. In other words, it “clearly does not reflect the real economic activity taking place in Bermuda.”
A point highlighted by the report: “We should not lose sight of why tax dodging matters to average people.”
It notes: “Fair tax systems are vital to finance well-functioning and efficient states and to enable governments to fulfill their obligations to uphold citizens’ rights to essential services such as healthcare, education, and social protection for low income families.”
Look no farther than Flint, Michigan—a city facing “falling tax revenues and budget cuts” that took the purported cost-reducing strategies of installing an emergency manager and switching the water system to the Flint River from the Detroit water system, which lead to thousands of children being exposed to lead contamination.
As the report was released in the wake of the Panama Papers, a massive leak that exposed how the world’s rich and powerful use tax havens to hide their wealth, Robbie Silverman, Senior Tax Advisor at Oxfam, said, “Yet again we have evidence of a massive systematic abuse of the global tax system.”
“When corporations don’t pay their fair share of taxes governments are forced to cut back on essential services or levy higher taxes on the rest of us. It’s time governments stopped pandering to big business and started working for the good of their citizens.
“We can’t go on with a situation where the rich and powerful are not paying their fair share of tax, leaving the rest of us to foot the bill. Governments across the globe must come together now to end the era of tax havens,” Silverman said.
If you haven’t heard yet about John Podesta, don’t be surprised – the major media’s radio silence belies his power and influence, working both inside and outside the US government to bundle campaign money and influence policy. Outside the US, his family’s lobbying firm is a magnet for gobs of cash coming from Saudi Arabia, Russia, Iraq, Azerbaijan, Qatar and many others hoping to curry favor on the inside track.
The above video demonstrates the bluntness of Mr. Podesta, one time chief of staff to Bill Clinton, as he lay out his ill-fated scheme for public education, raining aggressive standardized testing policies, Common Core and charter schools onto the states through an avalanche of money. Buddied up with Jeb Bush, this 42 minute conference unpacked in 2012 how the Race to the Top initiative would transform every 3rd-8th grade public school into testing factories built on unproven, secret logarithmic formulas to rank students, teachers and schools.
PEARSON PAYDAY: The clip shows Bush and Podesta laughing about how strongly they agreed that billionaire philanthropists, corporations, hedge fund managers and political action committees should pump money into “infrastructure” for education reform. The plot would succeed, farming out major education functions to testing firms and consultants as schools lost student funding, precious learning time, arts, sports and counseling services.
Part of the plan was to generate PR and “communications” through advocacy organizations, but the heavy lifting came as hedge funders flooded statehouses with campaign cash. Once elected, Podesta’s revolving door came into use, dispatching staffers to write the policy for busy politicians. He founded Center for American Progress, the think tank Politico calls Hillary’s “policy shop” and hired a slew of former Dept of Education officials to write articles.
The implementation of Common Core has been roundly panned, with Hillary Clinton herself deeming it a botch-job after it led to explosive test refusals across the states, led in striking fashion by New York. Podesta noted in the video that education “reform” would go through ups and downs, insisting the donors anticipate fierce, sustained resistance.
He accurately described how teachers would reject his corporatization, but he left out how parents and students would opt-out of exams en masse, turning the resultant data into “swiss cheese” and thereby, making expectations of standardization pointless. Yet Hillary doubled down just last week, saying she would encourage her granddaughter to take the Common Core exams. This signals to education reformers to keep funding candidates and keep promoting the “valuable data” claim.
DEEDS, NOT WORDS: Hillary promised last month to end the revolving door onstage in televised debates, but her closest advisers took funding from the Gates, Waltons and Wall Street to promote privatization. Her current staff includes lobbyists for Keystone XL, private prisons and big finance firms.
The idea that she takes Wall Street money yet would still be tough on them defies common sense, as did the claim Obama was tough on banks after he took their millions. Like David Dayen, those following the issue know Obama went exceedingly soft on banks, failing to prosecute securities fraud, robosigning and granting backdoor immunity deals that only cut in the government on the heist.
Hillary says she needs corporate cash to compete with Republicans, but this was proven wrong by Bernie, raising record-breaking amounts at the same time making PAC money a liability. Hillary’s lack of vision shows how little faith she had in working class Americans.
THE ESTABLISHMENT HELPS IT’S OWN: But it also shows how entrenched Hillary is in the money-fueled status quo. Podesta has been running SuperPACs since the Obama years, but was also given powerful advisory positions in the White House, picking Obama’s cabinet members and advising on education and environmental issues.
Podesta’s family lobbies for a variety of corporate interests, foreign governments and fossil fuel producers, including Sberbank, the biggest state-influenced bank in Russia, who was looking to avoid sanctions following the occupation of Crimea. The same bank was just found to have shell corporations in the Panama Papers.
The major media won’t report this, but here, Salon exposes how foreign entities ply The Podesta Group with rich lobbying fees, notably Saudi royalty, the governments of Iraq and Kuwait, Qatari liquid natural gas producers and many US corporations including Walmart, Monsanto and Lockheed Martin.
The Podesta Group was founded by John Podesta but is now run by Tony Podesta, also a large bundler for Hillary. The firm was instrumental in brokering unconscionable deals as Clinton administration officials like Madeline Albright and Wesley Clark actually acquired major telecoms in Kosovo, capitalizing on their diplomatic contacts. The revolving door is still in full swing today. Dubbing John Podesta the “Hillary moneyman”, reporter Michael Isikoff listed a number of foreign lobbyists who also bundle big bucks for Hillary including some who served with her at the State Dept.
ABOVE REPROACH: The Podestas maintain that the millions the firm receives do not affect John’s work on policy matters. John also told Politico that speeches the Clintons gave to Wall Street and overseas conglomerates don’t affect their decisions. Podesta himself advised Bill Clinton to repeal Glass-Steagall, in a hasty 3-day decision that is today seen as a contributing cause of the 2008 fiscal crisis, only to lobby for Bank of America and others after leaving office.
Writing for The Nation in 2013, Ken Silverstein described CAP as an uncommonly secretive revolving door to the Obama White House, basically an unregistered lobby shop promising access to important officials for large contributions. CAP took exception, yet refused to disclose donors or basic financial statements.
PRO-UNION, THIS WEEK: In NY, Hillary visited the picket line of striking Verizon workers but she has taken major campaign cash from Verizon. She also took over $330k from the Waltons, the largest anti-union employer in the US. But Hillary’s union support is decidedly top-down. Here the NY Post, Fox News, Jacobin, the LA Times, Slate, and union teachers themselves disapprove of the extremely early endorsement of Clinton by the AFT, followed later by the NEA.
MEDIA MALPRACTICE: The fix will not be televised. CNN’s parent corp is a top donor to Hillary’s campaign which is hard to ignore seeing their “Bernie Blackout”. Here a CNN anchor actually tells Amy Goodman that Bernie’s speech was censored because he didn’t win more states than Hillary.
In order to paint Hillary’s win as a foregone conclusion, media regularly reports delegate totals including superdelegates which are subject to change. But the media didn’t cover Bernie at all for 2-3 months until Rachel Maddow and Chris Hayes started reporting his large crowds. The NY Times was caught stealth-editing a positive Bernie article after it was shared widely. The WaPo’s bias was evident as they publushed 16 anti-Bernie articles right before Super Tuesday.
THANKS HILLARY: Since the first Citizens United ruling in January 2012, media firms have enjoyed over $5 billion per year in expanded ad spending. Ironically, the case began as a lawsuit pitting Citiens United, a right wing organization against Hillary Clinton who wanted to block them from distributing DVDs called Hillary The Movie. The Supreme Court however greatly expanded the scope of the case to categorize almost all political spending in national races as “free speech”.
Later that year, a second Citizens United ruling made unlimited, anonymous spending legal in all political races, including state and local contests. So what started as a bitter vendetta against Hillary became a key ruling greenlighting uncontrollable money orgies during elections, particularly encouraging negative ads as “independent” expenditures are less controversial. The prohibition against coordination between PACs and campaigns has become something of an open joke, but the greater irony is the way Hillary now harnesses the PAC money and unlimited spending as the frontrunner.
THE SUPERDELEGATE FIX: Leaving little to chance, Hillary “bought” hundreds of superdelegates in 2015 before Bernie was even running. The Hillary Victory Fund is a PAC run by her campaign and the DNC which uses the campaign finance loophole created by the awful McKutcheon SCOTUS decision.
Hillary’s wealthy supporters max out contributions to 33 different state parties who then transfer the money to Hillary. It’s legal but this is money laundering. Then, the fund distributes less than a third of the donations to local candidates, securing the votes of superdelegates long before a single primary vote was cast.
They double the money by maxing out spouses, and then double it again by doing it in calendar years 2015 and 2016. So even though we have limits, Hillary found a way to get $25 million from her core contributors and hundred of superdelegates committed. This is how the game was rigged before votes were cast. Wyoming showed us that people’s votes don’t matter, Bernie won by 12% but got 7 delegates to Hillary’s 11.
As the primary progresses, many voters are realizing how byzantine and unfair party primaries are, with many controls on the idea of one person-one vote, not the least of which has been voting improprieties such as the hours-long lines in Arizona, reports of unrequested party affiliation switching in NY, PA and elsewhere.
The bottom line here is class war, with the 1% doing their all to secure a win for the most corporatist candidate they can. An anti-establishment Republican voter backlash has led to unimaginable success by Donald Trump, but so too have Democratic voters flocked to Bernie Sanders as 2016 increasingly becomes an election about rejecting money-in-politics. We can only hope the truth somehow gets out to the largest voting block in the country – the non-voter – to motivate them to get active and defend the middle class.
About the Author:
(OpEdNews Contributing Editor since October 2006) Inner city schoolteacher from New York, mostly covering media manipulation. I put election/finance reform ahead of all issues but also advocate for fiscal conservatism, ethics in journalism and curbing overpopulation. I enjoy open debate, history, the arts and hope to adopt a third child. Gustav Wynn is a pseudonym, but you knew that.
“Now it’s just an oligarchy, with unlimited political bribery being the essence of getting the nominations for president or to elect the president. And the same thing applies to governors, and U.S. senators and congress members.” – Former President Jimmy Carter
The 2016 election has been a wild ride, with two insurgent grassroots campaigns literally giving the political establishment a run for its money. But as the events of this presidential primary season play out, it’s becoming clear the U.S. election — and even more so, the presidential race — is a big scam being perpetrated on the American people.
Events from the last week have exposed the system as an illusion of choice and a farce. They have reinforced at least one study showing the U.S. is an oligarchy rather than a democratic republic.
The Wyoming democratic caucus took place on Saturday, purportedly to allow voters to have their voices heard in the race between Bernie Sanders and Hillary Clinton. Sanders lost the Wyoming caucus by winning it with a 12 percent margin.
Wait, what?
How does one lose by winning 56 percent of the votes? This happens when the political process is, according to the New York Post, “rigged” by superdelegates. The Post summed up this “strange” phenomenon:
“[U]nder the Democratic Party’s oddball delegate system, Sanders’ winning streak — he has won seven out of the past eight contests — counts for little.
“In fact, despite his win, he splits Wyoming’s 14 pledged delegates 7 to 7 under the caucus calculus.
“Clinton, meanwhile, also gets the state’s four superdelegates — who had already pledged their allegiance to her in January. So despite ‘losing,’ she triumphs 11-7 in the delegate tally.”
Even media pundits on MSNBC openly called the process rigged:
The superdelegate process is complicated, as we’ve noted before, but they have one essential function: to prevent candidates like Bernie Sanders from winning the Democratic nomination.
Don’t believe me? Here’s a video of Democratic National Committee chairwoman Debbie Wasserman Schultz explaining superdelegates:
Adding insult to injury, even when Sanders does win states (despite Hillary’s advantage in superdelegates), the media can be reliably counted on to discount Sanders’s wins as nothing more than prolonging the electoral process, which will inevitably elect the presumptive nominee, Hillary Clinton. This pervasive commentary continues despite the fact Sanders only trails her by several hundred pledged delegates.
Meanwhile, according to the same media, the non-establishment Trump campaign is threatened every time Ted Cruz beats him — even though Trump leads by a larger percentage of pledged delegates than Clinton does. When Clinton loses, it doesn’t matter because she already has the nomination locked up. When Trump loses, his campaign is in big trouble. Starting to see the problem with the media coverage?
When you examine these media narratives, a troubling pattern emerges that goes beyond the political establishment’s self-interest. You begin to see that American corporate media also functions as an arm of the political machine, protecting establishment candidates while attacking — or dismissing — candidates who seem non-establishment.
This brings us to the events that transpired during the Republican nomination process in Colorado on Saturday. The Republican Party of Colorado didn’t even bother letting people vote before using arcane rules to strip the democratic process of its democracy. According to the Denver Post:
“Colorado GOP leaders canceled the party’s presidential straw poll in August to avoid binding its delegates to a candidate who may not survive until the Republican National Convention in July.
“Instead, Republicans selected national delegates through the caucus process, a move that put the election of national delegates in the hands of party insiders and activists — leaving roughly 90 percent of the more than 1 million Republican voters on the sidelines.”
Unsurprisingly, Trump’s non-establishment campaign walked away with zero delegates. They were all “awarded” to Ted Cruz.
“How is it possible that the people of the great State of Colorado never got to vote in the Republican Primary? Great anger — totally unfair!”Trump said on Twitter. “The people of Colorado had their vote taken away from them by the phony politicians. Biggest story in politics. This will not be allowed!”
In an interview on Monday, Trump was even more frank. “The system is rigged, it’s crooked,” he said.
The Colorado GOP didn’t even bother hiding its intentions, tweeting — then quickly removing — what was possibly the most honest insight into the back-door dealing so far this election season:
The Republican party chooses the nominee, not the voting public. Still in disbelief? Watch a Republican National Committee member explain it better than I can:
What we are witnessing — for the first time on a large scale — is the political establishment’s true role in selecting the president of the United States. The illusion of choice has become apparent. The establishment anoints their two picks for president, and the country proceeds to argue vehemently over the two candidates they are spoon-fed. This dynamic is reminiscent of a prophetic 1998 quote from philosopher Noam Chomsky:
“The smart way to keep people passive and obedient is to strictly limit the spectrum of acceptable opinion, but allow very lively debate within that spectrum.”
Ahh, the illusion of choice. Sure, in reality there are third party candidates who should be given a fair shake, but in our mainstream media-augmented reality, third parties do not exist. They aren’t mentioned. They aren’t even included in presidential debates. This is another way the media stifles healthy debate, stamps out dissenting opinions, and preserves the status-quo.
“We The People” don’t choose our presidents; they are hand-picked by a powerful group of political party insiders — parties that have long since sold out to the highest bidders. What we have on our hands in America is a riggedoligarchy, and that’s not a conspiracy theory — it’s fact. Now, however, millions of Americans are becoming aware of it thanks to the populist campaigns of Bernie Sanders and Donald Trump. America’s elections are controlled by a big club, but unfortunately, “you ain’t in it!”
With the recent release of Hillary Clinton’s emails by Wikileaks, the public now knows exactly how the North Atlantic Treaty Organization (NATO) went from a collective defense organization to the new Barbary Coast Pirates of imperialism.
During the 2011 Libyan uprising, the United Nations Security Council passed Resolution 1973 which called for a ceasefire and authorized military action to protect civilian lives. A coalition formed, centered around NATO with the March 17, 2011 passing of the Resolution. Its purpose — a so-called “no-fly zone” over Libya.
The irony that the U.S.-dominated NATO military organization would be concerned with “protecting” Arab civilians is all too obvious since the United States is the nation most responsible for killing Arab civilians.
The real reasons for the attack have been dealt with most directly by America’s famous reformed “economic hitman,” John Perkins.
Perkins points out that the attack on Libya, like the attack on Iraq, has to do with power and control of resources, not only oil, but gold. Libya has the highest standard of living in Africa. “According to the IMF, Libya’s Central Bank is 100% state owned. The IMF estimates that the bank has nearly 144 tons of gold in its vaults,” Perkins wrote.
NATO went there like modern Barbary Coast Pirates — to loot Libya’s gold. The Russian media, in addition to Perkins, reported that the Pan-Africanist Qaddafi, the former President of the African Union, had been advocating that Africa use the gold so plentiful in Libya and South Africa to create an African currency based on a gold dinar.
“It is significant that in the months running up to the UN resolution that allowed the U.S. and its allies to send troops into Libya, Muammar al-Qaddafi was openly advocating the creation of a new currency that would rival the dollar and the euro. In fact, he called upon African and Muslim nations to join an alliance that would make this new currency, the gold dinar, their primary form of money and foreign exchange. They would sell oil and other resources to the US and the rest of the world only for gold dinars,” Perkins explained.
Revelation in Email to Hillary Clinton
Wikileaks released an unclassified U.S. Department of State document emailed to Hillary dated April 2, 2011, key Clinton aide Sidney Blumenthal confirmed that the Perkins was right and the attack on Libya had nothing to do with Qaddafi being a threat to the United States and NATO and everything to do with looting his gold.
“Qaddafi’s government holds 143 tons of gold, and a similar amount in silver. During late March, 2011, these stocks were moved to Sabha (south west in the direction of the Libyan border with Niger and Chad); taken from the vaults of the Libyan Central Bank in Tripoli,” Blumenthal reported to Clinton.
Blumenthal pointed out the purpose of Qaddafi’s precious metal: “This gold was accumulated prior to the current rebellion and was intended to be used to establish a pan-African currency based on the Libyan golden Dinar. This plan was designed to provide the Francophone African Countries with an alternative to the French franc (CFA).”
Blumenthal spells out the reason for NATO’s attack and France’s imperial plunder, “French intelligence officers discovered this plan shortly after the current rebellion began, and this was one of the factors that influenced President Nicholas Sarkozy’s decision to commit France to the attack on Libya.”
There were five reasons for France’s illegal war with NATO against Libya. Sarkozy sought, according to Blumenthal, “a. A desire to gain a greater share of Libyan oil production, b. Increase French influence in North Africa, c. Improve his internal situation in France, d. Provide the French military with an opportunity to assert its position in the world, e. Address the concern of his advisors over Qaddafi’s long term plans to supplant France as the dominant power in Francophone Africa.”
Under the neo-colonialism favored after World War II during the period of the Cold War, we preferred to bribe various African leaders to help us loot their nation’s resources. The U.S., of course, killed any Pan-African aspirations as well as potential leaders like Patrice Lumumba.
This highjacking of Arab and African resources and slaughtering of Arab civilians is a long-standing plan put forth by neo-conservatives in the United States. The Project for a New American Century (PNAC) has had a “hit list” of Arab nations and little regard for Arab casualties.
General Wesley Clark wrote in “Winning Modern Wars” that “As I went back through the Pentagon in November 2001, one of the senior military staff officers had time for a chat. Yes, we are still on track for going against Iraq, he said. But there was more. This was being discussed as part of a five-year campaign plan, he said, and there was a total of seven countries beginning with Iraq, then Syria, Lebanon, Libya, Iran, Somalia, and Sudan.
What we witnessed in Libya was old-fashioned 19th century imperialism — the deliberate plundering of a sovereign nation-state’s resources by more powerful Western conquistadors.
In an interview with Cenk Uygur March 23, Bernie Sanders noted, “The media is an arm of the ruling class of this country,” going on to point out its concentrated corporate ownership (for example, Disney’s ownership of ABC, Comcast’s of NBC, etc). This corporate media has a vested interest in not covering real news in a way that examines the root causes of problems. Such coverage might lead to radical threats to the power structure. Of course he’s quite right. And it’s not a situation that came about by accident; the state played a central role in bringing it about.
The mainstream media — network news shows, cable news networks, major newspapers and wire services — is part of an interlocking set of governing institutions that also includes government agencies, large corporations, and universities, think tanks and charitable foundations. These institutions share a common organizational style — top-down hierarchies and enormous managerial bureaucracies, Weberian rules, million-dollar executives — and tend to shuffle their personnel back and forth from one such institution to the other.
This whole interlocking complex of institutions goes back to the rise of such institutions in the late 19th century as the dominant organizational form — a top-down transformation of the American economy and society that the state and the plutocratic interests controlling it imposed on the country.
From the beginning of radio, the state’s regulatory approach fostered a cartelized system of nationwide media networks. The FCC licensing system permitted a limited number of radio stations compared to what the spectrum permitted. Had the full spectrum been opened up on a first-come first-served basis, with something like the common law of riparian rights preventing new stations from broadcasting on frequencies that might disrupt broadcasts of existing stations, there would have been many more stations. And had the spectrum been open to all homesteaders, there would have been a variety of participants including amateurs and hobbyists, and community and labor groups. For that matter the FCC itself might have awarded its licenses to such a variety of groups; but instead it awarded them almost entirely to commercial interests. And given a limited number of salable licenses, they inevitably appreciated in value just like taxicab medallions, so that only plutocratic interests could afford them.
But before the mass broadcast media ever came into existence, there was already a nationwide advertising market in place fostered by the corporate centralization of the economy, and a complex of corporate and government institutions to influence the content of media.
The existence of a nationwide advertising market, coupled with “intellectual property” in content and rebroadcast rights, further reinforced the concentration of broadcast media into nationwide networks.
And the pre-existence of an interlocking system of corporate, state and civil society institutions into which the media could be assimilated, created the systemic pressures and filters behind what Noam Chomsky and Edward Herman called the media’s “Propaganda Model.” This doesn’t just mean the cruder forms of influence like direct advertiser vetoes of stories, or even editorial fear of offending advertisers — although that obviously plays a real part in filtering content. More important is the common class background and affinity, and common social ties of those in charge of the media and governing institutions, and the symbiotic organizational structures of the institutions themselves.
Network executives, talk show hosts, and newspaper publishers and editors travel in the same social circle as the powerful state and corporate figures whom they’re theoretically supposed to serve as watchdogs over. So you have “responsible” and “patriotic” news organizations refusing to report on government war crimes, and people like publisher Katherine Graham of the Washington Post telling an appreciative audience of CIA spooks that “there are some things the public doesn’t need to know.”
You have a “professional” journalistic culture, since Walter Lippmann’s time, dominated by the same managerial ethos as other governing institutions, seeing their job as simply reporting “objectively” what “both sides” say without regard to facts. And given the limited (and dwindling) resources for actual reporting, you have the majority of TV news anchor scripts and newspaper column inches taken up either by quotes from public figures or the output of public spokespersons and corporate and state PR departments. You have wire service correspondents in countries where the U.S. is backing local death squads or military coups, sitting in hotel rooms writing their copy directly from U.S. embassy handouts.
The cumulative effect of all these filters, without much central direction, is a sort of “invisible hand” mechanism with exactly the result Chomsky and Herman described: a corporate media that reports news from the perspective of the state and the corporations in control of it almost the same as if they were officially censoring it.
So Sanders is right: the media is an arm of the ruling class — and the state is at the heart of it.
Sadly, some important duties of journalism, such as applying evenhanded standards on human rights abuses and financial corruption, have been so corrupted by the demands of government propaganda – and the careerism of too many writers – that I now become suspicious whenever the mainstream media trumpets some sensational story aimed at some “designated villain.”
Far too often, this sort of “journalism” is just a forerunner to the next “regime change” scheme, dirtying up or delegitimizing a foreign leader before the inevitable advent of a “color revolution” organized by “democracy-promoting” NGOs often with money from the U.S. government’s National Endowment for Democracy or some neoliberal financier like George Soros.
We are now seeing what looks like a new preparatory phase for the next round of “regime changes” with corruption allegations aimed at former Brazilian President Luiz Ignacio Lula da Silva and Russian President Vladimir Putin. The new anti-Putin allegations – ballyhooed by the UK Guardian and other outlets – are particularly noteworthy because the so-called “Panama Papers” that supposedly implicate him in offshore financial dealings never mention his name.
Or as the Guardian writes: “Though the president’s name does not appear in any of the records, the data reveals a pattern – his friends have earned millions from deals that seemingly could not have been secured without his patronage. The documents suggest Putin’s family has benefited from this money – his friends’ fortunes appear his to spend.”
Note, if you will, the lack of specificity and the reliance on speculation: “a pattern”; “seemingly”; “suggest”; “appear.” Indeed, if Putin were not already a demonized figure in the Western media, such phrasing would never pass an editor’s computer screen. Indeed, the only point made in declarative phrasing is that “the president’s name does not appear in any of the records.”
A British media-watch publication, the Off-Guardian, which criticizes much of the work done at The Guardian, headlined its article on the Putin piece as “the Panama Papers cause Guardian to collapse into self-parody.”
But whatever the truth about Putin’s “corruption” or Lula’s, the journalistic point is that the notion of objectivity has long since been cast aside in favor of what’s useful as propaganda for Western interests.
Some of those Western interests now are worried about the growth of the BRICS economic system – Brazil, Russia, India, China and South Africa – as a competitor to the West’s G-7 and the International Monetary Fund. After all, control of the global financial system has been central to American power in the post-World War II world – and rivals to the West’s monopoly are not welcome.
What the built-in bias against these and other “unfriendly” governments means, in practical terms, is that one standard applies to a Russia or a Brazil, while a more forgiving measure is applied to the corruption of a U.S. or European leader.
Take, for instance, former Secretary of State Hillary Clinton’s millions of dollars in payments in speaking fees from wealthy special interests that knew she was a good bet to become the next U.S. president. [See Consortiumnews.com’s “Clinton Stalls on Goldman-Sachs Speeches.”]
Or, similarly, the millions upon millions of dollars invested in super-PACS for Clinton, Sen. Ted Cruz and other presidential hopefuls. That might look like corruption from an objective standard but is treated as just a distasteful aspect of the U.S. political process.
But imagine for a minute if Putin had been paid millions of dollars for brief speeches before powerful corporations, banks and interest groups doing business with the Kremlin. That would be held up as de facto proof of his illicit greed and corruption.
Losing Perspective
Also, when it’s a demonized foreign leader, any “corruption” will do, however minor. For example, in the 1980s, President Ronald Reagan’s denounced Nicaraguan President Daniel Ortega for his choice of eyewear: “The dictator in designer glasses,” declared Reagan, even as Nancy Reagan was accepting free designer gowns and free renovations of the White House funded by oil and gas interests.
Or, the “corruption” for a demonized leader can be a modest luxury, such as Ukrainian President Viktor Yanukovych’s “sauna” in his personal residence, a topic that got front-page treatment in The New York Times and other Western publications seeking to justify the violent coup that drove Yanukovych from office in February 2014.
Incidentally, both Ortega and Yanukovych had been popularly elected but were still targeted by the U.S. government and its operatives with violent destabilization campaigns. In the 1980s, the CIA-organized Nicaraguan Contra war killed some 30,000 people, while the U.S.-orchestrated “regime change” in Ukraine sparked a civil war that has left some 10,000 people dead. Of course, in both cases, Official Washington blamed Moscow for all the trouble.
In both cases, too, the politicians and operatives who gained power as a result of the conflicts were arguably more corrupt than the Nicaraguan Sandinistas or Yanukovych’s government. The Nicaraguan Contras, whose violence helped pave the way for the 1990 election of U.S.-backed candidate Violeta Chamorro, were deeply implicated in cocaine trafficking. [See Consortiumnews.com’s “The Sordid Contra-Cocaine Saga.”]
Today, the U.S.-supported Ukrainian government is wallowing in corruption so deep that it has provoked a new political crisis.[See Consortiumnews’com’s “Reality Peeks Through in Ukraine.”]
Ironically, one of the politicians actually named in the Panama Papers for having established a shadowy offshore account is the U.S.-backed Ukrainian President Petro Poroshenko, although he got decidedly second-billing to the unnamed Putin. (Poroshenko denied there was anything improper in his offshore financial arrangements.)
Double Standards
Mainstream Western journalism no longer even tries to apply common standards to questions about corruption. If you’re a favored government, there might be lamentations about the need for more “reform” – which often means slashing pensions for the elderly and cutting social programs for the poor – but if you’re a demonized leader, then the only permissible answer is criminal indictment and/or “regime change.”
One stark example of these double standards is the see-no-evil attitude toward the corruption of Ukraine’s Finance Minister Natalie Jaresko, who is touted endlessly in the Western media as the paragon of Ukrainian good governance and reform. The documented reality, however, is that Jaresko enriched herself through her control of a U.S.-taxpayer-financed investment fund that was supposed to help the people of Ukraine build their economy.
According to the terms of the $150 million investment fund created by the U.S. Agency for International Development (USAID), Jaresko’s compensation was supposed to be capped at $150,000 a year, a pay package that many Americans would envy. But it was not enough for Jaresko, who first simply exceeded the limit by hundreds of thousands of dollars and then moved her compensation off-books as she amassed total annual pay of $2 million or more.
The documentation of this scheming is clear. I have published multiple stories citing the evidence of both her excessive compensation and her legal strategies for covering up evidence of alleged wrongdoing. [See Consortiumnews.com’s “How Ukraine’s Finance Minister Got Rich” and “Carpetbagging Crony Capitalism in Ukraine.”]
Despite the evidence, not a single mainstream Western news outlet has followed up on this information even as Jaresko is hailed as a “reform” candidate for Ukrainian prime minister.
This disinterest is similar to the blinders that The New York Times and other major Western newspapers put on when they were assessing whether Ukrainian President Yanukovych was ousted in a coup in February 2014 or just wandered off and forgot to return.
In a major “investigative” piece, the Times concluded there was no coup in Ukraine while ignoring the evidence of a coup, such as the intercepted phone call between U.S. Assistant Secretary of State for European Affairs Victoria Nuland and U.S. Ambassador to Ukraine Geoffrey Pyatt discussing who they would put into power. “Yats is the guy,” said Nuland – and surprise, surprise, Arseniy Yatsenyuk ended up as prime minister.
The Times also ignored the observation of George Friedman, president of the global intelligence firm Stratfor, who noted that the Ukraine coup was “the most blatant coup in history.” [See Consortiumnews.com’s “NYT Still Pretends No Coup in Ukraine.”]
The Propaganda Weapon
The other advantage of “corruption” as a propaganda weapon to discredit certain leaders is that we all assume that there is plenty of corruption in governments as well as in the private sector all around the world. Alleging corruption is like shooting large fish crowded into a small barrel. Granted, some barrels might be more crowded than others but the real decision is whose barrel you choose.
That’s part of the reason why the U.S. government has spread around hundreds of millions of dollars to finance “journalism” organizations, train political activists and support “non-governmental organizations” that promote U.S. policy goals inside targeted countries. For instance, before the Feb. 22, 2014 coup in Ukraine, there were scores of such operations in the country financed by the National Endowment for Democracy (NED), whose budget from Congress exceeds $100 million a year.
But NED, which has been run by neocon Carl Gershman since its founding in 1983, is only part of the picture. You have other propaganda fronts operating under the umbrella of the State Department and USAID. Last year, USAID issued a fact sheet summarizing its work financing friendly journalists around the globe, including “journalism education, media business development, capacity building for supportive institutions, and strengthening legal-regulatory environments for free media.”
USAID estimated its budget for “media strengthening programs in over 30 countries” at $40 million annually, including aiding “independent media organizations and bloggers in over a dozen countries,” In Ukraine before the coup, USAID offered training in “mobile phone and website security,” which sounds a bit like an operation to thwart the local government’s intelligence gathering, an ironic position for the U.S. with its surveillance obsession, including prosecuting whistleblowers based on evidence that they talked to journalists.
USAID, working with billionaire George Soros’s Open Society, also funds the Organized Crime and Corruption Reporting Project, which engages in “investigative journalism” that usually goes after governments that have fallen into disfavor with the United States and then are singled out for accusations of corruption. The USAID-funded OCCRP also collaborates with Bellingcat, an online investigative website founded by blogger Eliot Higgins.
Despite his dubious record of accuracy, Higgins has gained mainstream acclaim, in part, because his “findings” always match up with the propaganda theme that the U.S. government and its Western allies are peddling. Though most genuinely independent bloggers are ignored by the mainstream media, Higgins has found his work touted by both The New York Times and The Washington Post.
In other words, the U.S. government has a robust strategy for deploying direct and indirect agents of influence. Indeed, during the first Cold War, the CIA and the old U.S. Information Agency refined the art of “information warfare,” including pioneering some of its current features like having ostensibly “independent” entities and cut-outs present U.S. propaganda to a cynical public that would reject much of what it hears from government but may trust “citizen journalists” and “bloggers.”
But the larger danger from this perversion of journalism is that it sets the stage for “regime changes” that destabilize whole countries, thwart real democracy (i.e., the will of the people), and engender civil warfare. Today’s neoconservative dream of mounting a “regime change” in Moscow is particularly dangerous to the future of both Russia and the world.
Regardless of what you think about President Putin, he is a rational political leader whose legendary sangfroid makes him someone who is not prone to emotional decisions. His leadership style also appeals to the Russian people who overwhelmingly favor him, according to public opinion polls.
While the American neocons may fantasize that they can generate enough economic pain and political dissension inside Russia to achieve Putin’s removal, their expectation that he will be followed by a pliable leader like the late President Boris Yeltsin, who will let U.S. operatives back in to resume plundering Russia’s riches, is almost certainly a fantasy.
The far more likely possibility is that – if a “regime change” could somehow be arranged – Putin would be replaced by a hard-line nationalist who might think seriously about unleashing Russia’s nuclear arsenal if the West again tries to defile Mother Russia. For me, it’s not Putin who’s the worry; it’s the guy after Putin.
So, while legitimate questions about Putin’s “corruption” – or that of any other political leader – should be pursued, the standards of evidence should not be lowered just because he or anyone else is a demonized figure in the West. There should be single not double standards.
Western media outrage about “corruption” should be expressed as loudly against political and business leaders in the U.S. or other G-7 countries as it is toward those in the BRICS.
Investigative reporter Robert Parry broke many of the Iran-Contra stories for The Associated Press and Newsweek in the 1980s. You can buy his latest book, America’s Stolen Narrative, either in print here or as an e-book (from Amazon and barnesandnoble.com).
Had Sun Tsu co-authored a treatise on the art of sports with Capt. Obvious, a quote from that seminal work would probably read as follows:
If your team keeps playing an offensive game and keeps losing, eventually it will end up playing a defensive game, and will lose that too.
Stands to reason, doesn’t it? The team I have in mind is the neocon-infested Washington régime, which is by now almost universally hated, both within the US and outside of its borders, and the offensive game is the game that has been played by the Color Revolution Syndicate, with George Soros writing the checks and calling the shots. Having lost ground around the world, it is now turning its attention to trying to hold on to its home turf, which is the US.
Behind the Washington régime stands a group of transnational oligarchs, including many of the richest people in the world, and the game they play is as follows:
1. Saddle countries around the world with unrepayable levels of debt, most of which is stolen as soon as it is disbursed, leaving a population perpetually saddled with onerous repayment terms. This used to be done by the US to countries around the world, and has most recently been done to the US itself.
2. This game often results in rebellion, and the well-bribed national leaders in the rebellious countries are expected to put down the rebellion using any means necessary. But if they fail to suppress the rebellion, or if they side with the rebels, then they need to be regime-changed and replaced with a more subservient leadership, and the Color Revolution Syndicate swings into action.
3. The first ploy is to organize young people into a “nonviolent” protest movement (“nonviolent” is in quotes because mobbing the streets, shutting down commerce and blocking access to public buildings are all acts of violence). Their goal is to erode the boundaries of what’s allowed, until law and order break down and chaos and mayhem take over. At that point, the leadership that is to be regime-changed is supposed to jump on a plane never to be heard from again. But if they fail to do so, the next step in the program is…
4. Mass murder. Snipers are flown in and kill lots of people indiscriminately, while Western media blames the deaths on the soon-to-be-overthrown government. At this point most national leaders, sensing that their lives are at risk, choose to flee. This is what happened with the Ukraine’s Yanukovich. But sometimes, as happened with Egypt’s Hosni Mubarak, they simply retreat to a well-defended residence outside the capital and wait things out. And then a magic thing happens: the revolution chokes on itself. Local self-defense units form to protect neighborhoods; out of them emerges a partisan movement to thwart attempts by foreigners to further destabilize the country; and, after much bloodshed, law and order and a legitimate government return. This could have happened in Egypt, if it weren’t for the efforts of traitors within Mubarak’s own government. But then there is always…
5. Political assassination. If mass murder doesn’t work, it’s time to send in the assassins and physically eliminate the leadership. This has happened in Libya. As Hillary Clinton put it, paraphrasing Julius Caesar, “We came, we saw, he died!” Beware the Ides of March, Hillary!
By this time, it generally has to be conceded that the Color Revolution did not go according to plan, and the Washington régime starts doing its best to pretend that the sad country in question doesn’t exist. If someone manages to make it past face control and has the temerity to point out that it does exist, then the point is made doesn’t matter because it isn’t a vital interest. As Obama just pointed out [paraphrased by Jeffrey Goldberg writing for The Atlantic]: “Ukraine is a core Russian interest but not an American one.” This caused one Zbigniew Brzezinski to spit up all over his shirt. To be sure, there is fine comedy to be had when things don’t go according to plan for the Washington régime.
Recently, things have only been going downhill for the Color Revolution Syndicate. George Soros’s NGOs, which have been used to organize Color Revolutions, have been kicked out of both Russia and China; the silly “Umbrella Revolution” in Hong-Kong went nowhere slowly; Russia used its military training budget to rescue the government in Syria and to thrash ISIS and friends, and then moved on to negotiating a political settlement. And when Soros, in a fit of pique, tried to attack the Chinese currency, the Chinese laughed in his face and beat him about the head and shoulders with a printing press until he retreated.
Not only that, but things haven’t been going so well for the Washington régime either. The fake Democrat/Republican duopoly, which it has been using to simulate democracy and to disguise the fact that it’s all made to order for the same bunch of transnational oligarchs, is in trouble: a barbarian is at the gates. His name is Donald Trump, and he’s had the régime in his sights for many years. And now he is moving in for the kill.
Trump isn’t even that good at it, but this is a super-easy job. As I said, the Washington régime is just as hated within the US as it is around the world, if not more. Trump’s slogan of “Make America great again!” may sound overly ambitious, but what if his promise is to make America great again at exactly one thing—throwing members of the Washington régime on the ground and stomping on their heads until they pop? I am pretty sure that he can get this done.
Moreover, Trump doesn’t even try to be that good, although he is certainly very good at causing people to lose their minds. I came across one commentator who bounced off Carl Jung’s proto-new-age woo-woo on Hitler being a reincarnation of the Norse god Wotan and went on to claim that Trump is a reincarnation of Wotan’s brother Loki the Trickster. But here is a much simpler idea: Trump is an epitome of Trump. He enjoys being himself, and the unwashed multitudes find this aspirational because they are sick and tired of being told how they should think and behave by a bunch of clueless puppets.
Lastly, Trump gets a lot of help—from his enemies. All they have to do for him to prevail is to carry on being themselves—saying politically and perhaps even factually correct things, toeing the party line, carefully distancing themselves from Trump, repeating the talking points fed to them by Washington think tanks and generally being as useless and boring as possible. Then all Trump has to do to win is to distinguish himself from them by being rude, crude, vulgar, crass, obnoxious and raucously fun. Can you figure out on your own which one the people will pick—useless and boring or raucously fun—or will I need to summon Capt. Obvious again?
The Washington régime, and the oligarchs that back it and profit from it, have finally groked all of this, which is why they have been huddling and trying to organize a Color Counterrevolution that can stop Trump in his tracks. Soros and the ‘garchs started throwing around big bags of cash to get the counterrevolution on even before the actual Trump revolution happens. They were initially successful, shutting down a venue in Chicago with the help of Soros-owned Moveon.org. But it seems doubtful that they will prevail in the end. Instead, it seems more likely that they will give rise to a partisan movement.
You see, in the US hatred of the Washington régime runs very deep, with millions of people sick and tired of being swindled by various hated bureaucracies—in government, law, medicine, education, the military, banking… They hate those who took away their jobs and gave them to foreigners and immigrants. They hate those who stole their retirement savings and ruined their children’s futures. They hate the smug university types who keep telling them what to think and how to speak, making them feel inadequate simply for being who they are—salt of the earth Americans, racist, bigoted, small-minded, parochial, willfully ignorant, armed to the teeth and proud of it. There is very little that the régime can ask of these people, because the response to every possible ask is “no, because we hate you.”
And when these people, who are already seething with hatred, look at the political landscape, what do they see? They see the Democrats pushing the candidacy of the banker-crony-crook Clinton, and the only alternative is the full-socialistard “I am from the US government and I am here to help” Sanders who seems to be stuck in some sort of Great Society time warp. (There may be governments that get socialism right; the US government will never be one of them.)
They also see that the Republican establishment, previously so full of pseudorevolutionary puffery, is now so afraid of Trump that it would rather throw the election to the Democrats than support their own candidate, and this fills them with anger and disgust. Take all that seething hatred, mix in lots of anger and disgust, knead it, let it rise, and now you can bake a popular insurgency.
And a popular insurgency, or a partisan movement, is exactly what it takes to defeat the Color Revolution Syndicate. You see, the official authorities, be they the police, the army, the secret service or private security, are limited in the things they can do. In some ways, their hands are tied: if they violate law and order in order to defend law and order, they become mired in self-contradiction, and that just makes it more difficult for them to defend it the next time around.
But the partisans can do anything they want. They can infiltrate the protest movement and commit acts of violence in order to provoke the authorities into taking perfectly justifiable action. They can act to misdirect, demoralize and splinter protest groups. They can use social media to “out” the Color Revolution’s leaders and those who finance them (who, to remain effective, must hide in the shadows). They can liaise with the official authorities and trade favors for information.
If the Color Revolution shows signs of proceeding to the point where the tactics of Massacre and Political Assassination are about to be tried, they can form commando units, to make sure that these tactics lead to some massive unintended consequences, preventing their productive use. And if all else fails, they can form a guerrilla movement which, in order to win, simply has to not lose.
If all goes well then, starting next year, tens of thousands of Washington operatives, along with their friends in various politically connected industries, such as banking, defense, medicine and education, will evacuate to a variety of nonextradition countries (which will no doubt respond by raising the prices of their passports) while thousands more will begin their lengthy sojourns at federal penitentiaries. And thus the crisis will be defused.
And if it doesn’t go well, then we’ll probably be looking at a “deteriorating security environment.” How far it will deteriorate is anyone’s guess, but if you are one of the Washington régime’s stooges then you may want to get yourself a second passport before the prices go up and get out ahead of time.
After the Crash 