Tag Archives: PACs

FTX & the Joke of US Democracy

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From its founding in 2017, the one-man company rose to a “partner organisation” of the WEF and second largest donor to Biden and the Democrats’ mid-term election. It has now gone bust.

Sam Bankman-Fried during the Bitcoin 2021 conference. (Cointelegraph, CC BY 3.0, Wikimedia Commons)

By Craig Murray

Source: Consortium News

NOTE: This is is what I think of as a signpost article — it points you to something the mainstream media is deliberately not giving the prominence it needs, but I have no personal expertise or inside knowledge to give you. I am just giving you a start to get going. Several readers will have a much better understanding than I, and I encourage you to give your thoughts in comments below.

The FTX story seems truly remarkable. From being founded only in 2017 it rose to be a “partner organisation” of the World Economic Forum and the second largest donor to U.S. President Joe Biden and the Democrats’ mid-term election campaign. It has now gone completely bust, taking every penny of its depositors’ money with it.

That is some trajectory.

The World Economic Forum has deleted its FTX page, but the Wayback machine has it:

I suppose it is inevitable that dodgy chancers would create derivatives markets for gambling on crypto, but I confess I had not given the matter much thought. It goes without saying that in those five years the founder of FTX had managed to take a huge personal fortune out of the company before it went bust.

FTX was a one-man company belonging to Sam Bankman-Fried. The board consisted of him, an employee and the company lawyer. Over $20 billion of investors’ funds from FTX were funneled to a fund management company, Alameda Research, also owned by Sam Bankman-Fried.

Bankman-Fried donated $37 million to the Democrats for the 2022 elections. Every penny of that originated with duped FTX investors. That is in addition to the $5 million given to the Biden 2020 campaign. FTX, of course, crashed instantly after those mid-term elections, which is interesting timing.

The BBC and The Guardian were constantly bombarding us with the term “democracy denier” in their coverage of the U.S. elections, strangely not in reference to presidential candidate Hillary Clinton’s ludicrous claims that Russian interference was the cause of her loss in 2016.

I view as a joke any notion that the U.S. is a democracy. Democracy is about giving citizens a choice of political direction. The 2022 elections saw a simply incredible expenditure on campaigning of $ 9.7 billion. Yes, nearly $10 billion. This is not democracy. It is a huge exercise in corporate control from which the ordinary citizen is frozen out.

Despite an aggressive tribalism which has stalemated the political system for decades, the difference in policy platform between Democrats and Republicans is highly marginal, with no alternative on offer to rampant and uninhibited commercial exploitation of the population by the super-wealthy.

The Democrats are marginally more keen on attacking other countries; the Republicans are marginally more against measures to curb carbon emissions. Vaunted differences on immigration and welfare turn out to be very small indeed, with very little changing when the White House does.

American elections are simply about the super-rich funneling in vast donations, expecting to benefit when their team gets its nose in the trough, or often donating to both sides to benefit either way.

I am not sure what the connection to democracy is supposed to be.

One simple fact illustrates the true nature of the bribery fest. By far the majority of the funds channeled through Political Action Committees, or PACs, are given to incumbents who face no serious threat to re-election anyway.

The PACs are interested in bribing those in power, not changing those in power. They are simply lobby groups with an opportunity for legal bribery. To illustrate that, the largest donating PACs are:

National Association of Realtors
National Beer Wholesalers Association
American Israel Public Affairs Committee
Credit Union National Association
Blue Cross/Blue Shield
American Crystal Sugar

It is worth noting that Bankman-Fried donated 10 times as much as the largest PAC donation. This brought access — he and his brother had meetings inside the White House on March 7, April 22 and May 12.

It is perhaps unsurprising therefore that FTX was involved in Ukraine, offering to exchange cryptocurrency for fiat and send it to Ukraine in an official partnership with the Ukrainian government. This from their press release

“Aid For Ukraine is cooperating with the cryptocurrency exchange FTX which converts crypto funds received into fiat and sends the donations to the National Bank of Ukraine. This marks the first-ever instance of a cryptocurrency exchange directly cooperating with a public financial entity to provide a conduit for crypto donations. Earlier this month, FTX already converted $1 million worth of SOL and transferred it to the National Bank of Ukraine.”

The collapse of the Bankman Fried scam was allegedly caused by hackers stealing what should have been a comparatively small portion of the assets of FTX, had they not been hived off elsewhere. Doubtless we will shortly hear from state salaried conspiracy theorists that this was Russia/Guccifer/an ISP address traced by Bellingcat to inside the Kremlin.
What we really have here is an Allen Stanford for 2022, with added political connections.
We would do well to heed the advice of crypto developer Nikolai Mushegian, who had as his Twitter profile: “Larpers who self-style as CEOs or CTOs or VCs are a bigger problem than the establishment. They can’t build anything and will sell you out in 2 seconds.”
His final tweet was posted on Oct. 28:

The next day he drowned in the sea off a beach in Puerto Rico, where he lived. He was fully clothed including a jacket. The police are not treating it as homicide so presumably their theory is suicide by wading out to sea.

States of course have a massive incentive to destroy non-fiat currencies, or convert them into a new category of regulation. I am interested in the current discussion on smart state digital currencies where the state can track, control and block any transaction and know in real time exactly where each citizen or entity is spending or keeping every penny.

It occurs to me this is the wrong way round. The state belongs to its citizens, not the citizens to the state. We should be able to track online every single penny of public money in real time and see how it is spent. Imagine being able to follow every penny of the billions the Tories spent on fraudulent PPE contracts, for example.

The only people whose personal currency should be able to be tracked are those who hold, or have held, positions of power in the state. Their wealth and dealings should be available in great detail to public view. As for the rest of us, our money is ours and we are entitled to privacy.

DNC Caught Accepting Money from Union-Busting Companies in New Leak

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By Tom Cahill

Source: U.S. Uncut

A new set of documents leaked by hacker Guccifer 2.0 allegedly shows the Democratic National Committee has no qualms about asking for donations from some of the most evil corporations in America — even the corporations whose values are directly in opposition to the Democratic Party’s stated goals.

The spreadsheet, which can be viewed in its entirety here, shows that DNC chair Debbie Wasserman Schultz and others within the DNC contacted several dozen corporate lobbyists to secure donations for the 2016 election cycle, soliciting four, five, and six-figure donations from their clients. The same spreadsheet shows the DNC asking for and receiving large sums of money from labor unions, environmental groups, and other advocates of progressive causes who may have likely given more thought to their donation had they known the DNC was asking their biggest opponents for money as well.

On a tab labeled “YesCommits,” meaning donors that said yes to the DNC’s requests for money, the Service Employees International Union (SEIU) committed to a $45,000 donation for 2016. Just four slots below, Walmart’s PAC for Responsible Government is shown having donated $15,000 to the Democratic Party in 2015.

Walmart has always been openly anti-union and is known nationwide for forcing employees into captive-audience meetings, in which anti-union propaganda videos are shown to new hires. Nonetheless, at the same time the DNC asked Walmart for money, it also asked for and received a $45,000 donation from the United Food and Commercial Workers union, one of the unions leading and sponsoring protests and strikes at Walmart stores nationwide for the corporation’s opposition to raising wages and displays of open hostility toward unions.

In the “Active” tab, under which active requests that are awaiting a reply are filed, the DNC is seen asking the National Restaurant Association PAC for $45,000, and asking for an undisclosed amount from McDonald’s.

This is particularly ironic, as the National Restaurant Association is one of the leading opponents of a national minimum wage hike, and the SEIU has been leading and funding the Fight for $15 minimum wage campaign since 2012, with McDonald’s as one of its key targets. The Democratic Party has had a $15/hour minimum wage in its official platform since August 2015, when party activists passed a nonbinding resolution, which became official last weekend when the minimum wage hike was approved by the Platform Drafting Committee.

The DNC also received $15,000 from Verizon and $105,000 from Comcast despite also asking the Communications Workers of America (CWA) for funding. The union is currently actively fighting companies like Verizon and Comcast for better wages and working conditions for its workers.

The spreadsheet also shows the DNC has no problem soliciting organizations that have actively fought the Democratic Party’s key legislative fights over the years. While the Affordable Care Act is widely seen as President Barack Obama’s chief legislative victory throughout his two terms in office, the DNC nonetheless asked for a donation from the American Medical Association, which was one of the earliest opponents of healthcare reform, dating all the way back to 2009. The DNC also asked for money from health insurance giants Anthem, Cigna, and UnitedHealth group, despite all three of those companies donating to Republicans campaigning on a promise to repeal Obamacare.

Another key legislative victory for the Obama administration was the passage of the Dodd-Frank Act, which was written with the aim of reining in abuse on Wall Street in the wake of the 2008 financial crisis. Some of the big banks and financial institutions that opposed Dodd-Frank also received fundraising asks from the DNC, including Wells Fargo, Citigroup, HSBC, Capital One, UBS, and Morgan Stanley. The DNC also asked Wall Street lobbyists for money in 2016, including the Securities Industry and Financial Markets Association (SIFMA) PAC and the American Bankers Association PAC. Bloomberg once referred to SIFMA as “Wall Street’s largest trade group.”

Other opponents of the Democratic Party’s agenda to regulate the prices of pharmaceutical drugs have been pursued by the DNC. Pharmaceutical kingpin Pfizer committed to a $15,000 donation for 2016 after being asked for a stunning $150,000, while Merck and Eli Lilly were both asked to donate. In January, Pfizer increased the prices of more than 100 different drugs, some by as much as 20 percent. Eli Lilly jacked up the price of its Humalog insulin by 20 percent, while Pfizer increased prices on the anticonvulsant Dilantin, angina drug Nitrostat, hormone therapy drug Menest, and irregular heartbeat medication Tykosyn by 20 percent each.

Merck, which makes the type 2 diabetes drug Januvia, increased the drug’s price by 20.8 percent in 2015. Merck CEO Kenneth Frazier, who is also the head of Big Pharma’s chief lobby, the Pharmaceutical Research and Manufacturers of America (PhRMA), defiantly defended the price increase in a Wall Street Journal interview in February.

“Merck has increased the prices of its drugs on a yearly basis, but we’ve tried to be constrained in how we’ve done it, in a way we think doesn’t prevent people from affording our drugs,” Frazier said.

Other donors the DNC solicited are notorious household names for much of the Democratic Party’s base. Weapons manufacturers BAE Systems, General Dynamics, Lockheed Martin, Northrop Grumman, and Raytheon were all targeted for donations in the 2016 cycle. Fossil fuel companies Duke Energy, Murray Energy, Peabody Energy, and Valero were also on the list. The DNC list also featured universally loathed companies like News Corp, parent company of Fox News, and Monsanto, which is reviled for monopolizing American agriculture with genetically modified food and mob-like legal tactics to subdue farmers into submission who save their seeds.

Pfizer lobbyist Julie Idelkope and News Corp lobbyist Joanne Dowdell, who are listed as points of contact on the DNC spreadsheet, did not immediately respond to interview requests. Walmart spokesman Greg Hitt responded to an email request asking what the money was for, to which he responded that they “[d]on’t have specifics on how the DNC will use the money, but it is intended to support the convention.”

He also wrote, “We gave $15,000 to the DNC’s convention fund; same as we’ve given to the RNC’s convention fund.”

 

Tom Cahill is a writer for US Uncut based in the Pacific Northwest. He specializes in coverage of political, economic, and environmental news. You can contact him via email at tom.v.cahill@gmail.com.

MEET HILLARY’S CAMPAIGN CHAIR: “Moneyman” John Podesta and his Revolving Door

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By Gustav Wynn

Source: OpEdNews.com

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.

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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.

Time and again, the Podesta’s controversial deeds never seem to reflect back on Hillary. For example, John co-hosted this recent fundraiser with an NRA lobbyist, another with a big pharma lobbyist, and nuclear power producers. Tony’s wife Heather, also a major bundler, lobbies for the health insurance industry.

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.

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