Greg Palast

Syndicate content
Greg Palast, reporting for BBC, Harpers and more
Updated: 19 min 31 sec ago

My Big Fat Greek Minister

Mon, 05/20/2013 - 5:10pm

By Greg Palast for Vice Magazine

It wasn't too difficult picking out the Fat Bastard in the crowd of Russian models, craven moochers and media mavens. Besides, Fat Bastard and I were both desperate for coffee and heading for the same empty urn.

(We'd both signed on for Kazakhstan's annual Eurasia Media Forum, a kind of Burning Man festival for Eastern oilgarchs and their media camp followers.)

Now, it is my policy never to mention an interlocutor's weight, nor question the legitimacy of their birth, given my own vulnerabilities. (A would-be groupie told me, "You could do a few sit-ups, you know." Yes, I know.)

But this particular Fat Bastard is asking for it. I had tried to put the belly of this beast out of my thoughts, but I still had a New York Times story folded in my pocket that begins:

ATHENS – As an elementary school principal, Leonidas Nikas is used to seeing children play, laugh and dream about the future. But recently he has seen something altogether different, something he thought was impossible in Greece: children picking through school trash cans for food; needy youngsters asking playmates for leftovers; and an 11-year-old boy, Pantelis Petrakis, bent over with hunger pains.

Fat Bastard – or Theodoros Pangalos, leader of the Panhellenic Socialist Party (PASOK), Greece's equivalent to UK's  Labour Party – thinks the little Greek kiddies should stop belly-aching. Pangalos, as you can see from the photo below, is not bent over with hunger pains. In fact, he looks more likely to be bent over with labour pains, but in truth he probably just can't bend over at all.

Pangalos is best known for blaming the working people of Greece for the horror and the hunger among the ruins of what was once Greece's economy. However, it is, of course, not his fault; until last year, and through the core of the crisis, he was just Greece's Deputy Prime Minister – why should he be held accountable for anything?

Minister Pangalos is much loved by Europe's banking chieftains, by vulture speculators and by Prussian President Angela Merkel because they've got themselves a gigantic Greek who will mouth their mantra: that his nation's sudden collapse can be blamed squarely on olive-pit-spitting, lazy-ass Greeks who won't work more than three hours a week, then retire while they're still teenagers to swill state-subsidised ouzo.

Pangalos leads the Fifth Column of Greeks calling to accept Germany's terms of economic surrender: austerity, meaning cuts in food allowances, in pensions, in jobs. As of this week, more than one in four Greeks (27 percent) are out of work.

While we hunted for caffeine, Fat Bastard told me that anyone who complains about the austerity diktat, "Is a fascist or a communist or a conspiracy theorist." He didn't tell me which of these three categories the 11-year-old kids complaining of hunger pains fell into.

Just for the record, those Greeks who can get a job, work 619 more hours per year (see table) than the average German (and way, way more than Britons or Americans as well).

But in the world according to Pangalos, Merkel and poobahs of the media, Greece went to hell in a handbag because the entire nation suddenly turned into work-shirking grifters.

But there's another explanation for wrack and ruin: Greece is a crime scene. And its working people are not the perpetrators of the crime, they are the victims – scammed, defrauded, their national industries looted and their treasury drained by financial flim-flam.

In 2001, Greece dropped the drachma for the euro. The drachma was good enough for Aristotle and very good for tourism, Greece's main industry. But when sun-and-fun was re-priced in euros, tourists swam across the Adriatic for kofte meatballs priced in dirt-cheap Turkish lira. Pre-euro tourist visits to Greece outnumbered those to Turkey by millions; but by last year, it was the just the opposite, with two-thirds of tourists tanning in Turkey.

With its Treasury bleeding hard currency, the government of Minister Pangalos' PASOK joined together with the opposition in a complex international currency kiting operation to conceal the losses from the public and, most importantly, from the European Central Bank.

Why the cover-up of the deficit? The answer is that the euro is more than a currency: it is a straitjacket, a set of constricting rules that, for example, prohibit any euro nation from running a deficit of more than 3 percent of GDP.

That's impossible in a recession – not to mention plain insane – as it requires cutting public spending when spending is needed most. The USA, China, Brazil, India – the nations that pulled the world from depression's brink – all ran deficits way over the nutty 3 percent cap. I asked finance wiz Nomi Prins to calculate America's debt-to-GDP ratio using euro rules, and she estimates that Obama's deficits are now way down from recession's peak – to 10.2 percent of GDP.

Greece, fearing expulsion from the euro loony bin, turned to Goldman Sachs. For a mere $400 million in fees, plus golden sacks of ill-gotten trading gain, the investment bank was willing to cook the nation's books via a complex set of derivatives transactions. [For the particulars of the derivatives con, see How Goldman Sacked Greece.]

Since the con was busted open in 2009, the Greek public has had to pay cheated bondholders a premium to insure against default of the nation's debts. The credit default insurance costs an average of $14,000 (£9,218) per family per year.

When I was a racketeering investigator working with the US Justice Department, in the days when we pretended America still had justice, we would have called the derivatives trick a "fraud on the market". We'd handcuff the perpetrators, lock 'em up, or, at the least, make them cough up their purloined profits.

So, should Goldman pay up? Not according to Pangalos, because – in the worldview of our rulers – the victims of the scam are as guilty as the victimisers. Pangalos even put it into a famous (or infamous) motto: mazi-ta-fagame. That's Greek for "We all ate it together".

But the visible evidence suggests Pangalos, not Pantelis – the kid doubled over with stomach pain – ate all the pies.

The mass privatisation of public property at wiener schnitzel prices has German speculators dipping in their spoons as well, though the Federation of German industry is complaining about Greece's own "princes" gobbling up the assets.

I was going to invite Minister Pangalos to lunch to test his theories, but he left in a pachydermic huff when I asked him about Geir Haarde. Haarde, the former Prime Minister of Iceland, was found guilty of concealing his knowledge of the trickery used by Iceland's banks before they melted that nation's finances.

I asked Fat Bastard, "Do you think you should be in prison for" similar conduct in the Greek government?

Maybe that's why Minister Pangalos didn't want to go to lunch with me.

* * * * * * * *

Greg Palast’s book Vultures' Picnic (Constable Robinson UK/Penguin USA), including chapters on Greece and Goldman, will be published in Greek in early fall by Livani.  Download the first chapter, Goldfinger, and videos at VulturesPicnic.org.

Greg Palast's other books are the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy and Armed Madhouse.

Visit the Palast Investigative Fund's store and find great Holiday Gifts for your loved ones.
Or simply make a contribution to keep our work alive!

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

"Now that the SOB is Dead..." A Novel Idea: Asking an Afghan about Afghanistan

Fri, 05/10/2013 - 5:19pm

By Greg Palast for Vice Magazine

"Now that the sonovabitch is dead, why is the US still angry with us?"

"Us", in this conversation, are the Taliban. The SOB in question is Osama bin Laden.

The Taliban's frustration was relayed to me by Yahya Maroofi, Counsellor to Afghanistan's President Hamid Karzai – Karzai's Kissinger, if Kissinger had a soul.

The Silk Road nation of Kazakhstan is an excellent place to encounter the dervishes of the Great Game for control of the camel-and-pipeline routes of the Central Asian steppes. Here we can witness the diplomatic-military idiocies of new empires pathetically attempting to ignore the dried skeletons of the imperial forces that went before them.

Maroofi was spending the day in Kazakhstan's capital on his way to little-noticed peace negotiations – little noticed because neither Uncle Sam nor Great-Uncle Britain were invited. Attendance is limited to those frontline states that will be left holding the grenade when the US and UK pull out the pin with the removal of their troops in 2014. The lineup includes Kazakhstan, Russia, Kyrgyzstan (birthplace of the Boston Bombers) and the big new swinging dick on the block, Turkey, as well as Iran, the nation most feared and despised by the Taliban. The unannounced guests, of course, are the Taliban themselves.

I am moved to recount a bit of my lengthy talk with the Afghan minister after reading reams of meretricious bunkum about Afghanistan from the pens of US propaganda repeaters pretending to be reporters. My favourite is, "Hope Seen for Afghanistan After Coalition Leaves," in the New York Times. To give us an expert view, two American reporters used their 20-column inches to take down the words of General Joseph F Dunford Jr, commander of all "international forces" in Afghanistan.

Dunford just arrived in Afghanistan for the first time about 12 weeks ago. He may not know a Tajik from a camel fart, but he does speak fluent Pashto. (I made that last one up because I'm tired of Europeans making fun of Americans for being ignorant of foreign languages.) Notably, the Times article about the future of Afghanistan includes not one word from an Afghan.

But the General does have lots of medals (see?), so I suppose he's as good a source as any.

I did wonder why the Times flew reporters all the way to Kabul to speak to a bewildered US general when they could have saved time and painful immunisations by just copying the Pentagon press releases in Washington. The Times asked "Fighting Joe", as he's called in his official bio, the only question of concern to the US press: "Will the Afghan troops be able to resume lead responsibility" in killing Taliban? "Yes!" asserted the tourist-general.

So I figured, what the hell, let's ask an Afghan about Afghanistan's future. Maroofi, the minister into whose hands this future falls, takes a different tack entirely. He has no time for the American fixation on whether Afghans will fight the Taliban. He makes it clear that Afghans don't want to fight the Taliban at all. And the Taliban don't want to fight fellow Afghans.

But General Joe wants the Afghan army to prove its mettle in "fighting fellow Muslims and countrymen", as the Times puts it. It appears the US has a great fear that, without US boots on the ground and drones in the sky, the war will end, and with it, the Great (and very lucrative) Game.

However, it is the hope of most Afghans, and the goal of the Karzai government, not to kill Taliban, but to bring them into the government.

Or, as Maroofi explains, to recognise publicly that "the Taliban are already in the government, in the Parliament, in control of governorships" – but not openly. The talks among the frontline nations are to bring the Taliban back to its roots as a political organisation, not an armed insurgency.

Maroofi notes that there are some kinks to work out: Currently, female members of the Afghan parliament are fearful of attending with their not-yet-public Taliban colleagues.

"Taliban are Pashtun. They are citizens of Afghanistan. They have to have a place in our democracy." That's not what Uncle Sam wants to hear. President Barack Obama, the Drone Ranger, wants to convert Afghan forces into a kind of drone army, remotely controlled killers keeping the pot boiling.

Afghans, however, have had enough of playing proxy in someone else's war. And they see an opportunity to end the killing. It was taken as a matter of fact by all the Asian diplomats I met that, "The Taliban have been defeated" – militarily, that is; like the US army, they can't advance or hold ground. They are facing fellow Pashtuns (Karzai is one, of course), not the Northern Alliance of minorities that once controlled their opposition. The Taliban can't party like it's 1999.

Plus, the Taliban know there's a four-trillion-dollar carrot awaiting those who sign on to a peace agreement. The US Air Force has conducted a complete aerial survey of Afghan resources and released Russian assays measuring the nation's untapped mineral wealth in gold (in Badakshan), copper (Balkhab), iron (Haji-Gak), cobalt (Aynak), carbonatite (Khanneshin), tin (Dusar-Shaida) and more. Afghanistan could be the Saudi Arabia of rich rocks.

Left out of the published US reports (but something I dug out of old paper CIA files not purged from computers) was the most valuable stash of all: uranium, possibly the world's largest deposit. The Soviets secretly mined the uranium, using only imported Russian workers, until they were chased back home in 1988.

Uranium mining beats the hell out of the opium trade (which is slipping to Myanmar, anyway). The Karzai government's hope is to leave a path to wealth as its legacy, but that wealth can't be dug out until the soil above is free of land-mines and maniacs.

Chinese state companies are lining up in Kabul with shovels and signing bonuses. Maroofi likes Chinese companies – they're more likely to provide jobs than baksheesh. Unlike Western companies.

Baksheesh. Bribes. Corruption. It was this topic that set Maroofi on a long rip. Yes, Afghans have been showered with billions in bribes, backhanders and corrupt deals, but who's paying those bribes? Who's doing the corrupting?

"Karzai told defence contractor Lockheed Martin, ‘You give hundreds of millions of dollars in contracts to my family and to my minister's families because you expect to buy influence. You're not getting influence, and you're not getting your money back, either.'"

Lockheed’s response is that it is required by US law to give contracts to the “most qualified” bidder, regardless of familial relationships with government. Any government, it seems: Lynn Cheney, Dick’s wife, was once on Lockheed’s Board of Directors.

(Maroofi gave me details of questionable contracts that are poisoning the entire system of governance. I intend to hunt down the facts, so watch this space.)

America’s front pages have been splashed this past week with the CIA’s admission that it has been sending bucket-loads of US currency to President Karzai’s office. No one suggests that Karzai has dipped his own hand into the buckets: the loot is for his dispersal among warlords who need a little TLC. For example, Uzbek berserker Abdul Rashid Dostum boasts of billing the CIA $800,000 per month to stay on the government’s side.

But Karzai simply can't control the buckets of system gone wild. Maroofi is particularly incensed that, "These US companies give millions to governors they know are splitting the money with the Taliban." One favourite racket is for the Taliban to take millions in bribes (via the governors) to let through shipments of material used to supply US forces in remote areas who are fighting the Taliban.

Right now, the Taliban are ready – if reluctantly – for the peace deal, in order to get a piece of the resource action. And they're astonished that, with that sonovabitch Osama dead, the US still holds a grudge.

Why? Face it: if Karzai can end the war, then the winner of the Great Game is… China. After all, the US has almost all the ore it needs under its own soil or within easy grabbing distance from Canada and Latin America. And unlike China, desperate for those gas pipelines from Kyrgyzstan and oil lines from the Caspian, the US has fracked natural gas and oil coming out its arse. Indeed, unleashing Afghanistan's resource riches will only crash the price of commodity reserves held by US companies.

Afghanistan's peace is China's economic life-line and America's commodity price recession.

General Joe is not worried about a sudden outbreak of peace. “You can accuse me of being an optimist and I’ll plead guilty,” as he looks forward to an Afghanistan trapped in a war without end. For US corporations, that means a profit centre without end. That's because, even after US troops go, the military-industrial gravy train – boarded by contractors, special ops mercenaries, “development” agencies and their fixers – will continue to roll.

* * * * * * * *

Greg Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, just named Book of the Year on BBC Newsnight Review.

Visit the Palast Investigative Fund's store and find great Holiday Gifts for your loved ones.
Or simply make a contribution to keep our work alive!

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

Palast reports from KazakhstanFBI Spiked Chechen Jihadi Investigation

Fri, 05/03/2013 - 11:22am

By Greg Palast from Vice.com UK

[Astana, Kazakhstan]  Following the terrorist attack on September 11, 2001, I received documents marked "SECRET" from the files of the FBI's Washington field office. The information in those files will make you sick.

[Click through to get a free download of the film Bush Family Fortunes, which contains the fascinating background to this story.]

When the bombs went off at the Boston Marathon, I grabbed those FBI files – and a plane for Kazakhstan, bullying cameraman Rocco D into joining me.  [Rocco, no fool, won't let me print his full name.]

After we landed, word came that two Kazakh teens, friends of the bombers, had been arrested by Boston police and, yesterday, charged with hiding evidence of the bombers' guilt.

Here in Astana, Kazakhstan's capital, televisions everywhere run endless loops of the bombs going off at the Boston Marathon, the screams, the blood, the victims... and the questions.

And first question: How do a couple of wholesome Call-of-Duty-playing American kids get the idea they should murder and mangle their neighbors to avenge the Muslims of Chechnya—whom the victims probably couldn't find on a map?

The second question: How did America's trillion-dollar intelligence apparatchiks wave off warnings from Russia about one of the bomber's connections to the Chechen militants?

The answer regarding the intelligence failure is, to paraphrase the famous journalist Yogi Berra:  it's amazing what you don't see when you don't look.

And that's related to the how young Muslim-Americans came to kill other young Americans over Chechnya.

According to the secret memo, long before the Boston bombing, even before the September 11 attack, the FBI shut down an investigation of a group that ran a summer camp in Florida for America's Muslim teenagers.

No, we shouldn't be spying on Islamic campers. However, besides the usual swimming and soccer, these youngsters were encouraged to join the Chechen jihad. The kiddies were treated to videos praising Chechen bombers (who seized a school and hospital then killed their hostages). The group also produced an educational film praising, "that compassionate young man, Osama bin Laden".

Hey, it was a family affair.  Camp Jihad was run by the World Assembly of Muslim Youth (WAMY), whose operation just outside Washington DC was directed in the US by a man the FBI called "ABL" – Abdullah Binladden, Osama's brother.

When the Kazakh friends of the Boston bombers were arrested, I went back to that "SECRET" memo. It fell into my hands in November 2001, just two months after that "compassionate young man" Osama killed thousands in my office building (I once worked at the World Trade Center).

Why would my own government spike an investigation that might have saved lives in New York in 2001 [and in Boston in 2013]?

My producer at BBC Television called the FBI.  They did not deny the authenticity of the secret documents.  Well, then, if the US government has evidence someone may be illegally recruiting killers for Chechnya (as well as the Bosnia war), why in the world would you shut down the investigation and hide the findings?

The official answer was even more chilling than the secret memo itself.  The FBI spokesman told us at BBC:

"There are lots of things only the intelligence community knows and that no one else ought to know."


Well, what else are we not supposed to know?

We got the answer on November 9, 2001, when I received a call at BBC's Newsnight desk in London from a US intelligence agent via a "clean" phone. The spook confirmed that, beginning as early as 1995, the CIA and other US spy agencies were told to stand down from investigating the bin Laden family in both the US and in France.

Several insiders repeated the same story: US agencies turned a blind eye to the bin Laden-terrorist-Chechen-jihad connection out of fear of exposing the US government's half-assed—and half-illegal—support for these terrorists.

Our government gave ABL a pass (and safe passage back to Saudi Arabia) because Presidents Clinton and Bush were more than happy that our Saudi allies were sending jihadis to Afghanistan, then, via WAMY, helping Muslims to fight in Bosnia then, later, giving the Russians grief in Chechnya.

The problem is that terrorists are like pigeons – they come home to roost.

As Joe Trento of the National Security News Service, who provided crucial help to our investigation, told me, "It would be unseemly if [someone] were arrested by the FBI and word got back that he'd once been on the payroll of the CIA… What we're talking about is blow-back. What we're talking about is embarrassing, career-destroying blow-back for intelligence officials."

It's utterly unlikely the young Boston bombers were on the CIA payroll, but it's more than likely the elder brother's connections here in Central Asia could be traced back to US-protected killers of years past.

The sleight-of-hand to keep public eyes off the US juicing Chechen terror is almost fun to watch. There's surprisingly little official scrutiny of the media's new heart-throb, Ruslan Tsarni, the bombers' uncle. The Washington Post, praising Uncle Ruslan's "I LOVE AMERICA" schtick, noted,

"[Ruslan's] performance will be sewn into the rotation of TV news from here on out. Later, on MSNBC, Tom Ridge spoke highly of the message of ‘promise and hope' sent by Tsarni."

I would venture to guess that this was not the first time Mr. Ridge, first director of the US Department of Homeland Security, had heard Ruslan's messages. Ruslan founded the Congress of Chechen International Organizations and has lucrative work here in Kazakhstan as a USAID contractor and oil industry lawyer.

There is zero—and I mean zero—evidence that Uncle Ruslan or the CIA hired these two sad-ass kids in Boston to blow up their neighbors. The point here is that the FBI is too concerned about making sure that "no one else ought to know" about our government playing footsie with terrorists—and too unconcerned about the blow-back that blows up in Boston.

* * * * * * * *

Greg Palast investigated terror attacks on the US for BBC TV.

Readers can download Bush Family Fortunes, Palast's BBC documentary, without charge, at www.gregpalast.com/bffdownload/

Greg Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, just named Book of the Year on BBC Newsnight Review.

Visit the Palast Investigative Fund's store and find great Holiday Gifts for your loved ones.
Or simply make a contribution to keep our work alive!

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

Billionaire Bankster Penny PritzkerBreaks into Obama's Cabinet

Thu, 05/02/2013 - 3:37pm

By Greg Palast 

You made fun of me when I suggested that President Barack Obama would nominate a confessed bank scammer, a loan-sharking mortgage predator, to his cabinet.  But thar she blows!

Today, Obama has named Penny Pritzker Secretary of Commerce. As the President says, It's a milestone:  the first female fraudster to hold that post. No longer will criminal bankers have to lobby the administration - because now they'll have one of their own in the Cabinet.

The following is taken from the Chapter, "Penny's from Heaven?" you'll find in my bestseller, Billionaires & Ballot Bandits.  [Get a copy, I'll sign it, and you send it to the President.]

We never heard of this guy Barack Obama until 2004. Less than three years before taking the presidency, he was in the Illinois state senate, a swamp of scammers, backhanders, and party machine tools - not a stellar launch pad for the White House. And then, one day, state Sen. Barack Obama was visited by his fairy godmother. Her name is Penny Pritzker.

Pritzker's net worth is listed in Forbes as $1.8 billion, which is one hell of a heavy magic wand in the world of politics. Her wand would have been heavier, and her net worth higher, except that in 2001, the federal government fined her and her family $460 million for the predatory, deceitful, racist tactics and practices of Superior, the bank-and-loan-shark operation she ran on the South Side of Chicago.

Superior was the first of the deregulated go-go banks to go bust - at the time, the costliest failure ever. US taxpayers lost nearly half a billion dollars. Superior's depositors lost millions and poor folk in Sen. Obama's South Side district lost their homes.

Penny did not like paying $460 million. No, not one bit. What she needed was someone to give her Hope and Change. She hoped someone would change the banking regulators and the Commerce Department so she could get away with this crap.

Pritzker introduced Obama, the neophyte state senator, to the Ladies Who Lunch (that's really what they call themselves) on Chicago's Gold Coast. Obama got lunch, gold and better - an introduction to Robert Rubin. Rubin is a former Secretary of the Treasury, former chairman of Goldman Sachs and former co-chairman of Citibank. Even atheists recognized Rubin as the Supreme Deity of Wall Street.

Rubin opened the doors to finance industry vaults for Obama. Extraordinarily for a Democrat, Obama in 2008 raised three times as much from bankers as his Republican opponent.

This article is based on the chapter Penny's from Heaven? From Palast's New York Times Bestseller Billionaires & Ballot Bandits with comics by Ted Rall.Donate and get a signed copy.

So what did Citibank's Rubin get for showering Obama with gold? Obama agreed to take care of Rubin's poodles, Larry Summers and Tim Geithner. They became Obama's first cabinet picks: Summers as Economics Czar and Geithner as his czarina, Secretary of the Treasury.

Geithner and Summers were the gents who, under Treasury Secretary Rubin, designed the deregulation of banking. In effect, they had decriminalized the kind of financial flim-flammery that brought the planet to its knees while bringing Rubin, Pritzker and the banksters loads of lucre.

So, in 2008, Summers and Geithner were put back in the saddle - Obama's horse but Rubin's saddle.

Rubin received more than $100 million from Citigroup, the gargantuan commercial bank/investment bank/casino created by deregulation. It is worth a mention that Rubin's centi-million-dollar payoff went unchallenged by Citi's new owner, the US Treasury, which had put up more than a trillion dollars in loans and guarantees to pull Rubin's creature out of bankruptcy.

Rubin rocked, but Penny was pissed off. Pritzker had taken this state senator/community organizer from the ghetto, made him a US Senator, then, as Obama's campaign finance chairwoman, raised a mind-blowing three-quarters of a billion dollars to make him president.

In return, in 2008, Obama decided to make his patron Penny the Secretary of Commerce. But then, in November 2008, just as Obama was about to submit her nomination to Congress, a bunch of Pritzker's victims marched on Washington. They were not from her busted bank, but unhappy workers from the lucrative nursing homes that her family owns through a string of complex offshore trusts. Obama slammed the door on Penny pronto.

The Pritzker family made its billions mostly from Hyatt Hotels and Hyatt nursing homes. Penny, on the Hyatt board of directors, is an infamously combative anti-union apostle. UNITE HERE, the union that represents Hyatt workers, has called for an international boycott of Hyatt hotels. In 2012, UNITE HERE and its parent, the AFL-CIO, were crucial to Obama's winning Ohio, Michigan and Wisconsin. So, in this last campaign, Obama had to keep his billionairess heiress on the down-low.

Obama appeared to keep the door shut on Pritzker throughout the 2012 campaign, reducing her to hosting an election fundraiser at her Gold Coast digs, which she had to bill as a Goldman Sachs PAC event. This marks possibly the first time and last time anyone used Goldman Sachs as a PR cover.

But today, with the unions' money and votes already pocketed and counted, Obama can give working folks The Finger and give Penny her pound of flesh: the Commerce post.

The New York Times says that, "At Commerce, Ms. Pritzker could provide the president with a new way to reach out to the business community." The last time Pritzker reached out to the business community was to sell them sub-prime mortgage securities, worthless bags of financial feces manufactured by Superior Bank.

By giving Penny, the Piggy Banker, Commerce, we have to change Obama's rating to sub-prime.

I do note that some woman's organizations are applauding the appointment of the first female to the Commerce post.  But I prefer to honor the victims of the Chicago femme fatale.  Most of Penny's victims, busted bank borrowers and underpaid health care workers, are women, too. But, unlike those wounded and destroyed by Pritzker, she worked hard for her money: it was not easy inheriting her first billion from her daddy.

* * * * * * * *

Greg Palast earned his degree in finance at the University of Chicago but has since gone legit.  View his reports for BBC Television, Vice Magazine and more at www.GregPalast.com

Greg Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, just named Book of the Year on BBC Newsnight Review.

Visit the Palast Investigative Fund's store and find great Holiday Gifts for your loved ones.
Or simply make a contribution to keep our work alive!

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

Did Chavez’ Pick Steal the Election in Venezuela?

Mon, 04/22/2013 - 7:22pm

By Greg Palast for Vice Magazine - Leer el artículo en español aquí.

The guy in the cheap brown windbreaker walking up the dirty tenement steps to my New York office looked like a bus driver.

Nicolas Maduro, elected President of Venezuela last Sunday, did indeed drive a bus, then led the drivers' union, then drove Chávez' laws through the National Assembly as Venezuela's National Assembly chief.

And this week, the US State Department is refusing to accept the result, suggesting Maduro hijacked the vote count. But did he?Maduro came to me that day in 2004 on a quiet mission, sent by President Hugo Chávez to give me information I needed for my investigation for Rolling Stone – and to get information from me that might save Chávez' life.

For one more week you can download Palast's short documentary, The Assassination of Hugo Chávez, originally filmed in Venezuela for BBC, without charge.

The central topic was the "Invisible Ring". Venezuelan intelligence had secretly taped US Embassy contractors in Caracas talking in spook-speak: "That which took shape here is a disguised kind of intelligence... which is annexed to the third security ring, which is the invisible ring."

("Invisible Ring"? Someone at the State Department has read too many Alan Furst novels.)

On the grainy film, they worried that "Mr Corey" (a code name we easily cracked) would blow his cover and begin barking, "I am from the CIA! I am from the CIA!"

"Mr Corey" was certainly not from the CIA, an agency holding on to one last fig-leaf of discretion. This crew was far more dangerous, from a spy-for-hire corporation, Wackenhut Inc. I'd been tracking Wackenhut for years, ever since their spies – more Austin Powers than James Bond – were arrested while on a black-bag job for British Petroleum. They'd attempted to illegally tape a US Congressman by running a toy truck with a microphone through the ceiling vents over the lawmaker's head.

But even clowns, when heavily armed, can be deadly. In 2002, Chávez was kidnapped with the blessing of the US Ambassador right out of the presidential palace and flown by helicopter over the Caribbean where, Chávez later told me, the President assumed he'd be invited for a swim from 2,000 feet. Instead, just 48 hours later, Chávez was back at his desk.

But Washington wouldn't quit the coup business. New documents revealed several interlocked methods ("rings") for overthrowing Venezuela's elected government.

First, US operatives would monkey with voter registrations – and if that didn't steal the election from Chávez' party, the next step was to provoke riots against Chávez' elections "theft". The riots would lead to deaths – the deaths would be the excuse for the US to back another coup d'etat to "restore order" and "democracy" in Venezuela – and restore Venezuela's oil to Exxon. (Chávez had seized majority control of the oil fields and Exxon was furious.)

Maduro had already figured the US operatives wanted to use, "The collection of [voters'] signatures... to [occur] amidst a climate of violence and uncertainty, national and international uncertainty...To cause deaths the day of the collection of signatures."

Would this be to justify another coup?

Maduro said, "Yes: The justification to tell the world Chávez is a murderer, Chávez is a dictator, Chávez is a terrorist and the OAS [Organisation of American States] should intervene and Chávez should be ousted."

This week, the warlords of the rings are back in Caracas as, per the original script, the US State Department is backing opposition claims that Maduro's win is in question. And per the old playbook, the losers are taking to the streets, seven voters are dead (mostly Chávistas, but not all) and Caracas waits for the coup's next boot to drop.

Is a manoeuvre to remove Maduro far-fetched? George W Bush promoted the botched kidnapping of 2002. But it was the progressive Barack Obama who, in 2009, newly elected President, blessed the overthrow of the elected president of Honduras, Manuel Zelaya.

Still, it's fair to ask if Maduro and the Chávistas stole last week's presidential election?

Answer: They didn't have to. Even the Wall Street Journal accepts that, "for a majority of Venezuelans, Mr Chávez was a messiah," and Maduro, the successor Chávez chose from his deathbed, had too big a lead to lose.

Still, the election was nearly stolen – by the US-backed anti-Chávistas.

How? That's what Chávez wanted Maduro to find out from me: how could US operatives jerk with Venezuela's voter rolls? It wasn't a mere policy question: Maduro knew Chávez wouldn't be allowed to survive through another coup.

My answer: They could steal the vote the same way Bush did it in Florida – in fact, using the very same contractor. Take a look at these documents... from the pile I reviewed with Maduro:

According to this once-secret FBI memo, ChoicePoint Corp – under a no-bid contract – had shoplifted Venezuela's voter rolls, as well as the voter rolls of Argentina, Brazil, Nicaragua, Mexico and Honduras, all of whom were on the verge of electing presidents from the political left.

I did ask myself how our national security apparatchiks could say that filching these voter rolls made our nation more secure? What were they for?

I had little doubt. In November 2000, working for the Observer and BBC Newsnight, I discovered that a subsidiary of ChoicePoint had, for Governor Jeb Bush of Florida, obtained his state's voter rolls and "purged" more than 56,000 voters, the vast majority black and poor, illegally denying them their vote. And that was how Jeb's brother, George W, won the US presidency by just 537 ballots.

And now ChoicePoint had the data to allow Homeland Security to do a Florida on Venezuela – and Honduras and the others. (In 2006, the candidate of the left, Andrés Manuel López Obrador, won the election but lost the Mexican presidency through gross ballot-box finagling.)

Chávez himself read my findings on potential elections theft – to his nation on his TV show – and then he moved swiftly, establishing an election system that Jimmy Carter, who has headed vote observer teams in 92 nations, called, "an election process that is the best in the world".

Here's how it works: every Venezuelan voter gets TWO ballots. One is electronic, the second is a paper print-out of the touch-screen ballot, which the voter reviews, authorises, then places in a locked ballot-box. An astounding 54 percent of the boxes are chosen at random to open and check against the computer tally. It's as close to a bulletproof count as you can get.

Still, the guy who lost bitched and – his bluff called – was allowed to pick all the precincts he wanted – 12,000 – to add to the audit.

And that's why the US State Department then has to turn to the threat of bullets and "Third Ring" mayhem in the streets – to undermine the legitimacy of the new Maduro government and signal the US willingness to support a new coup.

It won't succeed this time, either. Populist socialist governments have now replaced the juntas and stooges that once gave the US control of the Organisation of American States. And Venezuelans themselves won't let it happen.

What impressed me about Maduro and his boss Chávez was their reaction to the Third Ring and the attempted Florida-tion of their election. Instead of ordering mass arrests, Chávez' and Maduro's response was to strengthen democracy with a no-tricks voting system.

I should note that ChoicePoint, once exposed, apologised to Mexico's government, agreed to destroy its ill-gotten voter rolls and, soon thereafter, sold itself to a credit-rating company. Wackenhut fired its goof-ball spooks and sold itself off in pieces. Both deny knowingly breaking laws of any nation. And in Bush's US State Department, all hell broke loose, as UN Ambassador John Negroponte, sources verified, fumed over what he deemed a renegade neo-con escapade endangering remaining US oil interests. (In fact, Chevron ended up paying what I call a "coup tax".)

The vote was still close, mainly because Maduro – a sincere, competent administrator – is no singing-dancing-camera-perfect Sinatra of politics like Chávez was.

Secretary of State Kerry's challenge to Maduro's 270,000-vote victory margin struck me as particularly poignant. Because in 2004, besides Chávez, I gave another presidential candidate evidence of the Bush gang's ballot banditry: Senator John Kerry. Kerry lost to Bush by a slim 119,000 ballots in Ohio, blatantly stolen, but Kerry refused to call for a recount. It took him two years to publicly acknowledge our findings – when he introduced, with Senator Ted Kennedy, legislation to fix America's corrupted voting system, then let the proposed law die of neglect.

Chávez knew, and Kerry will never learn, that democracy requires more than a complete count – it requires complete courage.

Articles and Reports on Hugo Chavez by Greg Palast 

- The Guardian UK
Don't believe everything you read in the papers about Venezuela

- The Guardian UK
Opec chief warned Chavez about coup

- BBC Newsnight Report (VIDEO):
The Coup Against Hugo Chavez

- Cruisin' for a Bruisin' with Hugo

- Venezuela Floridated

- Dick Cheney, Hugo Chavez and Bill Clinton's Band

- BBC News
Chavez rules out return to cheap oil

- BBC Newsnight Report (VIDEO):
Chavez's Venezuela - Bush over a Barrel

- The Progressive
George Bush Should Get Down on his Knees and Kiss Hugo Chavez' Behind

- Fear of Chavez is Fear of Democracy

- Vice Magazine
The Koch Brothers, Hugo Chavez 
and the XL Pipeline

* * * * * * * *

Investigative reporter Greg Palast covered Venezuela for BBC Television Newsnight and Harper’s Magazine.

Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

3 Years ago Today Deepwater Horizon Explodes

Sat, 04/20/2013 - 1:27pm

By Greg Palast

The Hidden Truth - Watch the Film

ShareThis

My Apologies to the Family of Mrs. Thatcher

Wed, 04/10/2013 - 4:48pm

By Greg Palast

I strenuously object to the dissemination of this scurrilous doggerel, falsely attributed to me, on the passage of an iconic stateswoman:

Naggie Hatchet dead and gone

Ruled her Empire State like Queen Kong

Stomping on us little peeps

Just to sell our Jewels to creeps.

And lost the war that Winston won

By turning back the clocks to

England’s meanest hour.

Yet worse to come: as trapped below her terror tower,

And forced to look up that Iron Skirt

At the beastly anus as it squirt

From the crack in the grizzly monkey hair:

Tony Blair.

My apologies to Lady Thatcher’s family and sincere condolences.  After all, large simians are people, too.

Pedicabo si iocum non potest.

As to the real provenance of the poem on the death of Naggie Hatchet, I have found similar couplets written in my own hand and that of my co-author, Mr. Jack Daniels.

As Lady Thatcher's comrade Ronald Reagan said when shown the cold evidence that, indeed, Reagan authorized the treasonous act of sending weapons to the Ayatollahs of Iran:
"My heart says I didn't, but the facts say otherwise."

The smoking couplet, undeniably covered with my fingerprints...

Satan roared, his roasting spit a-burning.

He cranked the crank on the trussed-up meat, and laughed,

"Who said, 'This Lady's not for turning'?"

Again, my deepest apologies for these most inappropriate rhymes.

 

"Ritz Cracker" - @MadamMiaow aka Anna Chen responded to my inexcusably rude rhymes on the death of Lady Thatcher with this box of zits....

Margaret Thatcher died at the Ritz.
It fits.

Her blitz on the poor,

national assets thrust in the mitts
of corporate bandits.
Wealth trickled-down like a horse shits

undigested grain for birds that flit

round what its rear end emits.

Compassion deficit, dried out tits,
the country in bits, run by greedy gits.

Her fans omit the human price

of crimes her class commit.

Her legacy is the pits.

And she closed them as well.

 

By the way, Palast poetry partisans, I want you to check out Anna Chen's brilliant, dangerous and fully-loaded assault poems, Reaching for my Gnu, out on Amazon.

*  *  *  *  *  *  *

Greg Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

Bradley Manning & The Deepwater Horizon

Wed, 04/03/2013 - 7:24pm

By Greg Palast for Vice Magazine

Three years ago this month, on the 20th of April, 2010, the BP Deepwater Horizondrilling rig blew itself to kingdom come.

Soon thereafter, a message came in to our office's chief of investigations, Ms Badpenny, from a person I dare not name, who was floating somewhere in the Caspian Sea along the coast of Baku, Central Asia.

The source was in mortal fear he'd be identified – and with good reason. Once we agreed on a safe method of communication, he revealed this: 17 months before BP'sDeepwaterHorizonblew out and exploded in the Gulf of Mexico, another BP rig suffered an identical blow-out in the Caspian Sea.

Crucially, both the Gulf and Caspian Sea blow-outs had the same identical cause: the failure of the cement "plug".

To prevent blow-outs, drilled wells must be capped with cement. BP insisted on lacing its cement with nitrogen gas – the same stuff used in laughing gas – because it speeds up drying.

Time is money, and mixing some nitrogen gas into the cement saves a lot of money.

However, because BP's penny-pinching method is so damn dangerous, they are nearly alone in using it in deep, high-pressure offshore wells.

The reason: nitrogen gas can create gaps in the cement, allow methane gas to go up the borehole, fill the drilling platform with explosive gas – and boom, you're dead.

So, when its Caspian Sea rig blew out in 2008, rather than change its ways, BP simply covered it up.

Our investigators discovered that the company hid the information from its own shareholders, from British regulators and from the US Securities Exchange Commission. The Vice-President of BP USA, David Rainey, withheld the information from the US Senate in a testimony he gave six months before the Gulf deaths. (Rainey was later charged with obstruction of justice on a spill-related matter.)

Britain's Channel 4 agreed to send me to the benighted nation of Azerbaijan, whose waters the earlier BP blow-out occurred in, to locate witnesses who would be willing to talk to me without getting "disappeared". (They didn't talk, but they still disappeared.)

And I was arrested. Some rat had tipped off the Security Ministry (the official name of the Department of Torture here in this Islamic Republic of BP). I knew I'd get out quick, because throwing a reporter of Her Majesty's Empire into a dungeon would embarrass both BP and the Azeri oil-o-crats.

The gendarmes demanded our film, but I wasn't overly concerned: Before I left London, Badpenny handed me one of those Austin Powers camera-in-pens, on which I'd loaded all I needed. But I did fear for my witnesses left behind in Azerbaijan – and for my source in a tiger cage in the USA: Pvt Bradley Manning.

Manning could have saved their lives

Only after I dove into deep water in Baku did I discover, trolling through the so-called "WikiLeaks" documents, secret State Department cables released by Manning. The information was stunning: the US State Department knew about the BP blow-out in the Caspian and joined in the cover-up.

Apparently BP refused to tell its own partners, Chevron and Exxon, why the lucrative Caspian oil flow had stopped. Chevron bitched to the office of the US Secretary of State, Condoleezza Rice. (George Bush's cabinet member should not be confused with the 129,000-tonne oil tanker "Condoleezza Rice", which Chevron named after their former board member.)

The US Ambassador in Baku got Chevron the answer: a blow-out of the nitrogen-laced cement cap on a giant Caspian Sea platform. The information was marked "SECRET". Apparently loose lips about sinking ships would help neither Chevron nor the Azeri President Ilham Aliyev, the beneficiary of millions of dollars in payments of oil company baksheesh.

So what about Bradley Manning?

Manning has been charged with "aiding the enemy" – a crime punishable by death.

But Manning's sole and only purpose was to get out the truth. It wasn't Manning who wrote the cover-up memos, he merely wanted to get them to the victims: us.

And since when did the public become "the enemy"?

Had Manning's memos come out just a few months earlier, the truth about BP's deadly drilling methods would have been revealed, and there's little doubt BP would have had to change its ways. Those eleven men could well have been alive today.

Did Manning know about this particular hush-hush cable about BP's blow-out when he decided he had to become Paul Revere and warn the planet?

That's unlikely, in the thousands of cables he had. But he'd seen enough evidence of murder and mendacity in other cables, so, as Manning, under oath, told a court, he tried to give it all to the New York Times to have knowledgeable reporters review the cables confidentially for life-saving information.

The New York Times immediately seized on this extraordinary opportunity… to ignore Manning. The Times only ran it when the Guardian was going to scoop – and embarrass – the New York hacks.

Though there are limits. While reporter David Leigh put the story of BP's prior blow-out on page one of the Guardian, neither the New York Times or any other major US news outlet ran the story of the blow-out and oil industry cover-up. No surprise there, though – the most "prestigious" US news programme, PBS Newshour, was sponsored by… Chevron Corporation.

Hanging their source while taking his applause

As a working journalist, and one whose head is likely to be in the foggy gun-sights of some jet jockey or a dictator's goon squad, I have more than a little distaste for toffs like New York Times' former executive editor, columnist Bill Keller, who used Manning documents to cash in on a book deal and land star turns on television while simultaneously smearing his source Manning as, "troubled", "emotionally fractured", "vague", "inchoate" and – cover the children's ears – "gay".

Furthermore, while preening about their revelations from the Manning documents, the Times had no problem with imprisoning their source. I do acknowledge that the Times and Keller did editorialise that a sentence of life imprisonment without parole would be "overkill". How white of them.

When it was mentioned that Manning is no different from Daniel Ellsberg, the CIA operative who released the Pentagon Papers, Keller reassured that the Times also told Ellsberg he was "on his own" and did not object to their source being charged as a spy.

And the Times' much-lauded exposure of the My Lai massacre? My late good friend, the great investigative reporter Ron Ridenhour, who gave the story to Seymour Hersh, told me that he and Hersh had to effectively blackmail the Times into printing it.

Manning: aid to the enemy?

Times man Keller writes that Manning, by going to "anti-American" WikiLeaks, threatened the release of, "information that might get troops in the field or innocent informants killed".

Really?

This is the same Bill Keller who admits that he knew his paper's reports in 2003 that Saddam Hussein had weapons of mass destruction were completely false, but that he – as editor – covered up his paper's knowledge their WDM stories were simply bogus. Those stories validated the Bush propaganda and helped tip the political balance to invade Iraq. Four-thousand US soldiers died. I guess the idea is that releasing information that kills troops is criminal, but that dis-information that kills troops is quite acceptable.

Maybe I'm just cranky because I wouldn't have seen my own sources vanish and my film grabbed if the Times had only run the Manning facts about BP and Caspian when they had the chance.

Look, I' m only picking on the New York Times and PBS Newshour because they are the best in America, God help us.

What other lives could have been saved by the Manning revelations? Lots. Watch this space: I promise more aid to the enemies of the state – which is YOU.

* * * * * * * *

Greg Palast investigated the BP Deepwater Horizon deaths for Channel 4 Television UK . Those dispatches are contained in his highly acclaimed book Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

On April 5, there will be a gathering in New York with Daniel Ellsberg and defenders of Bradley Manning. Go to Greg Palast's Facebook page for more info.

His other books are the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy and Armed Madhouse.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

For media requests contact us.

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

How Bush won the war in Iraq - really!

Fri, 03/29/2013 - 2:51pm

By Greg Palast for Vice Magazine

If you thought it was "Blood for Oil"--you're wrong.  It was far, far worse.

Because it was marked "confidential" on each page, the oil industry stooge couldn't believe the US State Department had given me a complete copy of their secret plans for the oil fields of Iraq. Actually, the State Department had done no such thing. But my line of bullshit had been so well-practiced and the set-up on my mark had so thoroughly established my fake identity, that I almost began to believe my own lies.I closed in. I said I wanted to make sure she and I were working from the same State Department draft. Could she tell me the official name, date and number of pages? She did.

Bingo! I'd just beaten the Military-Petroleum Complex in a lying contest, so I had a right to be stoked.

After phoning numbers from California to Kazakhstan to trick my mark, my next calls were to the State Department and Pentagon. Now that I had the specs on the scheme for Iraq's oil – that State and Defense Department swore, in writing, did not exist – I told them I'd appreciate their handing over a copy (no expurgations, please) or there would be a very embarrassing story on BBC Newsnight.

Within days, our chief of investigations, Ms Badpenny, delivered to my shack  in the woods outside New York a 323-page, three-volume program for Iraq's oil crafted by George Bush's State Department and petroleum insiders meeting secretly in Houston, Texas.

I cracked open the pile of paper – and I was blown away.

Like most lefty journalists, I assumed that George Bush and Tony Blair invaded Iraq to buy up its oil fields, cheap and at gun-point, and cart off the oil. We thought we knew the neo-cons true casus belli: Blood for oil.

But the truth in the confidential Options for Iraqi Oil Industry was worse than "Blood for Oil". Much, much worse.

The key was in the flow chart on page 15, Iraq Oil Regime Timeline & Scenario Analysis:

"...A single state-owned company ...enhances a government's relationship with OPEC."

Let me explain why these words rocked my casbah.

I'd already had in my hands a 101-page document, another State Department secret scheme, first uncovered by Wall Street Journal reporter Neil King, that called for the privatization, the complete sell-off of every single government-owned asset and industry. And in case anyone missed the point, the sales would include every derrick, pipe and barrel of oil, or, as the document put it, "especially the oil".

That plan was created by a gaggle of corporate lobbyists and neo-cons working for the Heritage Foundation. In 2004, the plan's authenticity was confirmed by Washington power player Grover Norquist. (It's hard to erase the ill memory of Grover excitedly waving around his soft little hands as he boasted about turning Iraq into a free-market Disneyland, recreating Chile in Mesopotamia, complete with the Pinochet-style dictatorship necessary to lock up the assets – while behind Norquist, Richard Nixon snarled at me from a gargantuan portrait.)

The neo-con idea was to break up and sell off Iraq's oil fields, ramp up production, flood the world oil market – and thereby smash OPEC and with it, the political dominance of Saudi Arabia.

General Jay Garner also confirmed the plan to grab the oil. Indeed, Garner told me that Secretary of Defense Donald Rumsfeld fired him, when the General, who had lived in Iraq, complained the neo-con grab would set off a civil war. It did. Nevertheless, Rumsfeld replaced Garner with a new American viceroy, Paul Bremer, a partner in Henry Kissinger's firm, to complete the corporate takeover of Iraq's assets – "especially the oil".

But that was not to be. While Bremer oversaw the wall-to-wall transfer of Iraqi industries to foreign corporations, he was stopped cold at the edge of the oil fields.

How? I knew there was only one man who could swat away the entire neo-con army: James Baker, former Secretary of State, Bush family consiglieri and most important, counsel to Exxon-Mobil Corporation and the House of Saud.

(One unwitting source was industry oil-trading maven Edward Morse of Lehman/Credit Suisse, who threatened to sue Harper's Magazine for my quoting him. Morse denied I ever spoke with him. But when I played the tape from my hidden recorder, his memory cleared and he scampered away.)

Weirdly, I was uncovering that the US oil industry was using its full political mojo to prevent their being handed ownership of Iraq's oil fields. That's right: The oil companies did NOT want to own the oil fields – and they sure as hell did not want the oil. Just the opposite. They wanted to make sure there would be a limit on the amount of oil that would come out of Iraq.

There was no way in hell that Baker's clients, from Exxon to Abdullah, were going to let a gaggle of neo-con freaks smash up Iraq's oil industry, break OPEC production quotas, flood the market with six million barrels of Iraqi oil a day and thereby knock its price back down to $13 a barrel where it was in 1998.

Big Oil simply could not allow Iraq's oil fields to be privatized and taken from state control. That would make it impossible to keep Iraq within OPEC (an avowed goal of the neo-cons) as the state could no longer limit production in accordance with the cartel's quota system..

The problem with Saddam was not the threat that he'd stop the flow of oil – he was trying to sell more. The price of oil had been boosted 300 percent by sanctions and an embargo cutting Iraq's sales to two million barrels a day from four. With Saddam gone, the only way to keep the damn oil in the ground was to leave it locked up inside the busted state oil company which would remain under OPEC (i.e. Saudi) quotas.

The James Baker Institute quickly and secretly started in on drafting the 323-page plan for the State Department. In May 2003, w ith authority granted from the top (i.e. Dick Cheney), ex-Shell Oil USA CEO Phil Carroll was rushed to Baghdad to take charge of Iraq's oil. He told Bremer, "There will be no privatization of oil – END OF STATEMENT." Carroll then passed off control of Iraq's oil to Bob McKee of Halliburton, Cheney's old oil-services company, who implemented the Baker "enhance OPEC" option anchored in state ownership.

Some oil could be released, mainly to China, through limited, but lucrative, "production sharing agreements".

And that's how George Bush won the war in Iraq. The invasion was not about "blood for oil", but something far more sinister: blood for no oil. War to keep supply tight and send prices skyward.

Oil men, whether James Baker or George Bush or Dick Cheney, are not in the business of producing oil. They are in the business of producing profits.

And they've succeeded. Iraq, capable of producing six to 12 million barrels of oil a day, still exports well under its old OPEC quota of three million barrels.

The result: As we mark the tenth anniversary of the invasion this month, we also mark the fifth year of crude at $100 a barrel.

As George Bush could proudly say to James Baker: Mission Accomplished!

*  *  *  *  *  *  *

Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

MEDIA REQUESTS: For interviews contact us.

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

Hugo Chavez vs "The Network"

Thu, 03/14/2013 - 3:08pm

By Greg Palast for Vice Magazine

London, February 2002. A tiny, dark and intense woman waited at the end of a lecture until I was alone, brought her face strangely close to mine and whispered, “President Chavez needs you. Right now. To Caracas. Right now. You must come to see him.”
President Who? All I knew about this Hugo Chavez guy was that he was an Latin-American jefe, led a bungled coup and was filled with a lot of populist bullshit and a lot of oil.

And I also knew that no one at BBC Newsnight was going to blow the budget for me to fly to South America to talk about a nation that 92 percent of our viewers couldn't find on a map and wouldn't want to.

“Send me an email.”

“There will be a coup. March 15.”

“The Ides of March. I like that. Aren't there always coups down there?”

“They'll kill him, undo everything. He needs you to stop it, he wants to explain it to you because he knows you understand.”

Actually, you'd be surprised at the amount I don't understand at all. “So talk.”

She did – for four hours – and wore me down into submission. But back at Newsnight I looked like an idiot when March 15 came and went with just a little gunfire in Caracas.

Three weeks later, the President of Venezuela, Hugo Chavez, was kidnapped and held hostage by the head of Venezuela's Chamber of Commerce. Suddenly the BBC had to get me on a plane.

When I got to the Presidential Palace, Chavez was already back at his desk, though the bullet holes in the palace's walls weren't yet filled in.

Chavez told me that he'd agreed to be taken hostage by gunmen on the condition that his staff and their trapped children would be allowed to escape. He was bundled into a helicopter, and when it swerved out to sea he assumed he would be pushed out: “I was calm. I was ready.”

So who was behind it?

Chavez gave me information on US military attachés who had met with the plotters. While I couldn't verify any specific US directive to seize him, I didn't have to: I had grinning photos of George W Bush's new US Ambassador, Charles Shapiro, congratulating Chavez' kidnappers.

The question was, why? Why the need to eliminate Chavez, by coup, by bullet, by propaganda, embargo, or, as we later discovered, by screwing with Venezuela's vote count?

As a purgative for the crappola fed to Americans about Chavez, my foundation, The Palast Investigative Fund, is offering the film, The Assassination of Hugo Chavez, as a FREE download. Based on Palast's several meetings with Chavez, his kidnappers and his would-be assassins, filmed for BBC Television. DVDs also available. Watch the Video and share the link.

No doubt that for Bush's oil-o-crats, Chavez' doubling the royalties paid by Exxon and Chevron was worth the price of a bullet; but it was no more than the amount that Sarah Palin would seize from the oil companies when she ruled Alaska. So what was it?

The answer was in the movie Network.

“AM I GETTING THROUGH TO YOU, MR. BEALE? The Arabs have taken billions of dollars out of this country, and now THEY MUST GIVE IT BACK!

“It is ebb and flow, tidal gravity. You are an old man who thinks in terms of national and peoples. THERE ARE NO NATIONS. There are no peoples. There is only ONE HOLISTIC SYSTEM OF SYSTEM, one vast and immense, interwoven, interacting, multi-variate, multi-national dominion of dollars. Petro-dollars. Electro-dollars. Multi-dollars.IT IS THE INTERNATIONAL SYSTEM OF CURRENCY which determines the totality of life on this planet. Am I getting through to you?

Chavez had defied gravity, overpowered the tide. Venezuela earned billions in petro-dollars from the USA – but then, Chavez refused to “give it back”.

Third World nations are not supposed to keep the dollars paid to suck out their oil and mineral blood. For every dollar US consumers pay the Saudis for their oil, about $1.24 is given back as Saudis return the funds by purchasing US Treasury debt or hunks of US banks, CitiCorp for one.

In 2005, the US spent $227 billion in Latin America, sapping its properties and resources. But the money turned right around and, added to the funds sent to Miami by Latin America's elite, immediately became a $379 million loan to the US Treasury and financiers.

Argentina leant the US at 4 percent interest, then had to borrow its own money back at 16 percent – the whirring wheel, this grinder, left school teachers in Buenos Aires hunting in garbage cans for food. Riots followed and – in Peru, Ecuador, Argentina and elsewhere – this led to tanks in the street, currency collapse, crisis and the “rescue” by the IMF.  Rescue meant forcing the mass sell-off of state industries, from oil to water systems, to the crushing of labour unions and to swallowing the whole bottle of poisons kept by the elite of the Northern Hemisphere for just such occasions.

And that was the plan. Literally. I've held the proof in my hands, about five thousand pages of financial agreements, all labelled “confidential” and “not to be distributed except by authorized persons”, which bore benign titles like “World Bank Poverty Reduction Strategy, Argentina.”

Why would the IMF, World Bank and the bankers not want to make their wonderful plans for reducing poverty public? It was for the same reason the finance ministers who signed the documents didn't even tell their own presidents: they were in fact “reduce-to-poverty” plans, complete resource surrender.

For these deliberately bankrupted nations, it was sign or starve. Until Hugo Chavez came along. Early on, Chavez withdrew $20 billion of Venezuela's money leant to the US Federal Reserve, to create a giant micro-lending program for his citizens. Then he went a step too far, establishing what the Wall Street Journal called, “a tropical IMF”.

In 2000 and after, when the IMF and banks moved to financially strangle these nations by making their debts unsalable, Hugo Chavez would roll up in his oil-gilded chariot. He effectively underwrote Argentina's debt, providing 250million dollars worth of loans, and assistance to Ecuador. After Enron seized Argentina's water system and Occidental seized Ecuador's oil fields, Argentina's President Nestor Kirchner, followed by Ecuador's Correa, told US banks to go fuck themselves. And the IMF, too.

Then there was the big one: Brazil. The World Bank/IMF “Poverty Reduction Strategy” for Brazil required the nation to close its publicly-owned banks, to sell off its vast oil properties, to give away its power industry and, to please the new foreign owners, slash wages and pensions. But with Chavez prepared to back up its new President, Lula Ignacio de Silva, the mighty little man from the Socialist Workers Party could tell the IMF to stick it where the free market don't shine.

For the first time in contemporary history, resource states refused to give back the money received for their resource. At Chavez' funeral, Lula, former President Ignacio de Silva of Brazil, praised this as Chavez' most revolutionary act.

Now, instead of billions flowing North, Latin American capital was staying in Latin America. It is delicious irony that the European and American financiers, fleeing from the economic conflagration they'd ignited in their home countries, are loading their loot onto planes for Brazil. And that Venezuela's central bank made a mint on its intra-continental loans.

And so, a coup was called for.

In 2002, Chavez' oil company chief, Ali Rodriguez, told me: “America can't let us stay in power. We are the exception to the New Globalization Order. If we succeed, we are an example to all the Americas.”

That you were, Hugo Chavez. That you are, Venezuela. And all the Americas are ready.

Articles and Reports on Hugo Chavez by Greg Palast 

- The Guardian UK
Don't believe everything you read in the papers about Venezuela

- The Guardian UK
Opec chief warned Chavez about coup

- BBC Newsnight Report (VIDEO):
The Coup Against Hugo Chavez

- Cruisin' for a Bruisin' with Hugo

- Venezuela Floridated

- Dick Cheney, Hugo Chavez and Bill Clinton's Band

- BBC News
Chavez rules out return to cheap oil

- BBC Newsnight Report (VIDEO):
Chavez's Venezuela - Bush over a Barrel

- The Progressive
George Bush Should Get Down on his Knees and Kiss Hugo Chavez' Behind

- Fear of Chavez is Fear of Democracy

- Vice Magazine
The Koch Brothers, Hugo Chavez 
and the XL Pipeline

*  *  *  *  *  *  *

Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

MEDIA REQUESTS: For interviews contact us.

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

Fukushima: They Knew

Mon, 03/11/2013 - 10:52pm

"Completely and Utterly Fail in an Earthquake"
Two years later, the Fukushima story you didn't hear on CNN

An excerpt from Vultures' Picnic by Greg Palast

I've seen a lot of sick stuff in my career, but this was sick on a new level.
Here was the handwritten log kept by a senior engineer at the nuclear power plant:

Wiesel was very upset. He seemed very nervous. Very agitated. . . . In fact, the plant was riddled with problems that, no way on earth, could stand an earth- quake. The team of engineers sent in to inspect found that most of these components could "completely and utterly fail" during an earthquake.

"Utterly fail during an earthquake." And here in Japan was the quake and here is the utter failure.

The warning was in what the investigations team called The Notebook, which I'm not supposed to have.  Good thing I've kept a copy anyway, because the file cabinets went down with my office building ....

WORLD TRADE CENTER TOWER 1, FIFTY-SECOND FLOOR
NEW YORK, 1986

[This is an excerpt in FreePress.org from Vultures' Picnic: In Pursuit of Petroleum Pigs, Power Pirates and High-Finance Fraudsters, to be released this Monday.  Click here to get the videos and the book.]

Two senior nuclear plant engineers were spilling out their souls and files on our huge conference table, blowing away my government investigations team with the inside stuff about the construction of the Shoreham, New York, power station.

The meeting was secret. Very secret. Their courage could destroy their careers: No engineering firm wants to hire a snitch, even one who has saved thousands of lives. They could lose their jobs; they could lose everything. They did. That’s what happens. Have a nice day.

On March 12 (2011), as I watched Fukushima melt, I knew:  the "SQ" had been faked.  Anderson Cooper said it would all be OK.  He'd flown to Japan, to suck up the radiation and official company bullshit.  The horror show was not the fault of Tokyo Electric, he said, because the plant was built to withstand only an 8.0 earthquake on the Richter scale, and this was 9.0.  Anderson must have been in the gym when they handed out the facts.  The 9.0 shake was in the middle of the Pacific Ocean, 90 miles away.  It was barely a tenth of that power at Fukushima.

I was ready to vomit.  Because I knew who had designed the plant, who had built it and whom Tokyo Electric Power was having rebuild it:  Shaw Construction.  The latest alias of Stone & Webster, the designated builder for every one of the four new nuclear plants that the Obama Administration has approved for billions in federal studies.

But I had The Notebook, the diaries of the earthquake inspector for the company.  I'd squirreled it out sometime before the Trade Center went down.  I shouldn't have done that.  Too bad.

All field engineers keep a diary. Gordon Dick, a supervisor, wasn’t sup- posed to show his to us. I asked him to show it to us and, reluctantly, he directed me to these notes about the “SQ” tests.

SQ is nuclear-speak for “Seismic Qualification.” A seismically qualified nuclear plant won’t melt down if you shake it. A “seismic event” can be an earthquake or a Christmas present from Al Qaeda. You can’t run a nuclear reactor in the USA or Europe or Japan without certified SQ.

This much is clear from his notebook: This nuclear plant will melt down in an earthquake. The plant dismally failed to meet the Seismic I (shaking) standards required by U.S. and international rules.

Here’s what we learned: Dick’s subordinate at the nuclear plant, Robert Wiesel, conducted the standard seismic review. Wiesel flunked his company. No good. Dick then ordered Wiesel to change his report to the Nuclear Regulatory Commission, change it from failed to passed. Dick didn’t want to make Wiesel do it, but Dick was under the gun himself, acting on direct command from corporate chiefs. From The Notebook:

Wiesel was very upset. He seemed very nervous. Very agitated. [He said,] “I believe these are bad results and I believe it’s reportable,” and then he took the volume of federal regulations from the shelf and went to section 50.55(e), which describes reportable deficiencies at a nuclear plant and [they] read the section together, with Wiesel pointing to the appropriate paragraphs that federal law clearly required [them and the company] to report the Category II, Seismic I deficiencies.

Wiesel then expressed his concern that he was afraid that if he [Wiesel] reported the deficiencies, he would be fired, but that if he didn’t report the deficiencies, he would be breaking a federal law. . . .

The law is clear. It is a crime not to report a safety failure. I could imagine Wiesel standing there with that big, thick rule book in his hands, The Law. It must have been heavy. So was his paycheck. He weighed the choices: Break the law, possibly a jail-time crime, or keep his job.

What did Wiesel do? What would you do?

Why the hell would his company make this man walk the line? Why did they put the gun to his head, to make him conceal mortal danger? It was the money. It’s always the money. Fixing the seismic problem would have cost the plant’s owner half a billion dollars easy. A guy from corporate told Dick, “Bob is a good man. He’ll do what’s right. Don’t worry about Bob.”

That is, they thought Bob would save his job and career rather than rat out the company to the feds.

But I think we should all worry about Bob. The company he worked for, Stone & Webster Engineering, built or designed about a third of the nuclear plants in the United States.

From the fifty-second floor we could look at the Statue of Liberty. She didn’t look back.

***

Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

Vaya con Dios, Hugo Chàvez, mi Amigo

Tue, 03/05/2013 - 5:31pm

By Greg Palast for Vice Magazine

For BBC Television, Palast met several times with Hugo Chàvez, who passed away today.

As a purgative for the crappola fed to Americans about Chavez, my foundation, The Palast Investigative Fund, is offering the film, The Assassination of Hugo Chavez, as a FREE download. Based on my several meetings with Chavez, his kidnappers and his would-be assassins, filmed for BBC Television. DVDs also available.

Media may contact Palast at interviews (at) gregpalast.com.

Venezuelan President Chavez once asked me why the US elite wanted to kill him. My dear Hugo: It's the oil. And it's the Koch Brothers – and it's the ketchup.

Reverend Pat Robertson said,

"Hugo Chavez thinks we're trying to assassinate him. I think that we really ought to go ahead and do it."

It was 2005 and Robertson was channeling the frustration of George Bush's State Department.

Despite Bush's providing intelligence, funds and even a note of congratulations to the crew who kidnapped Chavez (we'll get there), Hugo remained in office, reelected and wildly popular.

But why the Bush regime's hate, hate, HATE of the President of Venezuela?

Reverend Pat wasn't coy about the answer: It's the oil.

"This is a dangerous enemy to our South controlling a huge pool of oil."

A really BIG pool of oil. Indeed, according to Guy Caruso, former chief of oil intelligence for the CIA, Venezuela hold a recoverable reserve of 1.36 trillion barrels, that is, a whole lot more than Saudi Arabia.

If we didn't kill Chavez, we'd have to do an "Iraq" on his nation. So the Reverend suggests,

"We don't need another $200 billion war….It's a whole lot easier to have some of the covert operatives do the job and then get it over with."

Chavez himself told me he was stunned by Bush's attacks: Chavez had been quite chummy with Bush Senior and with Bill Clinton.

So what made Chavez suddenly "a dangerous enemy"? Here's the answer you won't find in The New York Times:

Just after Bush's inauguration in 2001, Chavez' congress voted in a new "Law of Hydrocarbons." Henceforth, Exxon, British Petroleum, Shell Oil and Chevron would get to keep 70% of the sales revenues from the crude they sucked out of Venezuela. Not bad, considering the price of oil was rising toward $100 a barrel.

But to the oil companies, which had bitch-slapped Venezeula's prior government into giving them 84% of the sales price, a cut to 70% was "no bueno." Worse, Venezuela had been charging a joke of a royalty – just one percent – on "heavy" crude from the Orinoco Basin. Chavez told Exxon and friends they'd now have to pay 16.6%.

Clearly, Chavez had to be taught a lesson about the etiquette of dealings with Big Oil.

On April 11, 2002, President Chavez was kidnapped at gunpoint and flown to an island prison in the Caribbean Sea. On April 12, Pedro Carmona, a business partner of the US oil companies and president of the nation's Chamber of Commerce, declared himself President of Venezuela – giving a whole new meaning to the term, "corporate takeover."

U.S. Ambassador Charles Shapiro immediately rushed down from his hilltop embassy to have his picture taken grinning with the self-proclaimed "President" and the leaders of the coup d'état.

Bush's White House spokesman admitted that Chavez was, "democratically elected," but, he added, "Legitimacy is something that is conferred not by just the majority of voters." I see.

With an armed and angry citizenry marching on the Presidential Palace in Caracas ready to string up the coup plotters, Carmona, the Pretend President from Exxon returned his captive Chavez back to his desk within 48 hours. (How? Get The Assassination of Hugo Chavez, the film, expanding on my reports for BBC Television. You can download it for free for the next few days.)

Chavez had provoked the coup not just by clawing back some of the bloated royalties of the oil companies. It's what he did with that oil money that drove Venezuela's One Percent to violence.

In Caracas, I ran into the reporter for a TV station whose owner is generally credited with plotting the coup against the president. While doing a publicity photo shoot, leaning back against a tree, showing her wide-open legs nearly up to where they met, the reporter pointed down the hill to the "ranchos," the slums above Caracas, where shacks, once made of cardboard and tin, where quickly transforming into homes of cinder blocks and cement.

"He [Chavez] gives them bread and bricks, so they vote for him, of course." She was disgusted by "them," the 80% of Venezuelans who are negro e indio (Black and Indian)—and poor. Chavez, himself negro e indio, had, for the first time in Venezuela's history, shifted the oil wealth from the privileged class that called themselves "Spanish," to the dark-skinned masses.

While trolling around the poor housing blocks of Caracas, I ran into a local, Arturo Quiran, a merchant seaman and no big fan of Chavez. But over a beer at his kitchen table, he told me,

"Fifteen years ago under [then-President] Carlos Andrés Pérez, there was a lot of oil money in Venezuela. The ‘oil boom' we called it. Here in Venezuela there was a lot of money, but we didn't see it."

But then came Hugo Chavez, and now the poor in his neighborhood, he said, "get medical attention, free operations, x-rays, medicines; education also. People who never knew how to write now know how to sign their own papers."

Chavez' Robin Hood thing, shifting oil money from the rich to the poor, would have been grudgingly tolerated by the US. But Chavez, who told me, "We are no longer an oil colony," went further…too much further, in the eyes of the American corporate elite.

Venezuela had landless citizens by the millions – and unused land by the millions of acres tied up, untilled, on which a tiny elite of plantation owners squatted. Chavez' congress passed in a law in 2001 requiring untilled land to be sold to the landless. It was a program long promised by Venezuela's politicians at the urging of John F. Kennedy as part of his "Alliance for Progress."

Plantation owner Heinz Corporation didn't like that one bit. In retaliation, Heinz closed its ketchup plant in the state of Maturin and fired all the workers. Chavez seized Heinz' plant and put the workers back on the job. Chavez didn't realize that he'd just squeezed the tomatoes of America's powerful Heinz family and Mrs. Heinz' husband, Senator John Kerry, now U.S. Secretary of State.

Or, knowing Chavez as I do, he didn't give a damn.

Chavez could survive the ketchup coup, the Exxon "presidency," even his taking back a piece of the windfall of oil company profits, but he dangerously tried the patience of America's least forgiving billionaires: The Koch Brothers.

How? Well, that's another story for another day. [Watch this space. Or read about it in the book, Billionaires & Ballot Bandits. Go to BallotBandits.org).

Elected presidents who annoy Big Oil have ended up in exile—or coffins: Mossadegh of Iran after he nationalized BP's fields (1953), Elchibey, President of Azerbaijan, after he refused demands of BP for his Caspian fields (1993), President Alfredo Palacio of Ecuador after he terminated Occidental's drilling concession (2005).

"It's a chess game, Mr. Palast," Chavez told me. He was showing me a very long, and very sharp sword once owned by Simon Bolivar, the Great Liberator. "And I am," Chavez said, "a very good chess player."

In the film The Seventh Seal, a medieval knight bets his life on a game of chess with the Grim Reaper. Death cheats, of course, and takes the knight. No mortal can indefinitely outplay Death who, this week, Chavez must know, will checkmate the new Bolivar of Venezuela.

But in one last move, the Bolivarian grandmaster played a brilliant endgame, naming Vice-President Nicolas Maduro, as good and decent a man as they come, as heir to the fight for those in the "ranchos." The One Percent of Venezuela, planning on Chavez's death to return them the power and riches they couldn't win in an election, are livid with the choice of Maduro.

Chavez sent Maduro to meet me in my downtown New York office back in 2004. In our run-down detective digs on Second Avenue, Maduro and I traded information on assassination plots and oil policy.

Even then, Chavez was carefully preparing for the day when Venezuela's negros e indios would lose their king—but still stay in the game.

Class war on a chessboard. Even in death, I wouldn't bet against Hugo Chavez.

Articles and Reports on Hugo Chavez by Greg Palast 

- The Guardian UK
Don't believe everything you read in the papers about Venezuela

- The Guardian UK
Opec chief warned Chavez about coup

- BBC Newsnight Report (VIDEO):
The Coup Against Hugo Chavez

- Cruisin' for a Bruisin' with Hugo

- Venezuela Floridated

- Dick Cheney, Hugo Chavez and Bill Clinton's Band

- BBC News
Chavez rules out return to cheap oil

- BBC Newsnight Report (VIDEO):
Chavez's Venezuela - Bush over a Barrel

- The Progressive
George Bush Should Get Down on his Knees and Kiss Hugo Chavez' Behind

- Fear of Chavez is Fear of Democracy

- Vice Magazine
The Koch Brothers, Hugo Chavez 
and the XL Pipeline

* * * * * * * *

Investigative reporter Greg Palast covered Venezuela for BBC Television Newsnight and Harper’s Magazine.

Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

How Do You Steal a Dream?Supreme Court hears suit to kill Voting Rights Act

Wed, 02/27/2013 - 6:38am

How Do You Steal a Dream?
Supreme Court hears suit to kill Voting Rights Act

For Care2.com
By Greg Palast, author, “Billionaires and Ballot Bandits: How to Steal an Election in 9 Easy Steps

Sign the petition to Defend Martin Luther King's Dream Act - here.


Jim Crow is alive and well — and he has mounted a new attack on the law Martin Luther King dreamed of: the Voting Rights Act.

Today, February 27, the Supreme Court will hear a suit brought by Shelby County, Alabama, which challenges the right of the Department of Justice to review changes in voting procedure. Example: Attempts to cut the number of early voting days, to expunge “illegal alien” voters without any evidence, refusing Spanish-language ballots, have been blocked by the Department of Justice and courts because they have stopped Black and Hispanic citizens casting ballots.

Sixteen states are subject to this “pre-clearance” law, every one with a history of Jim Crow rules such as “literacy” tests — Blacks had to recite the Constitution, Whites “Mary Had a Little Lamb.”

Dixie moans it’s been picked on unfairly, but the “pre-clearance” states, chosen by an arithmetic formula, include all or parts of the “Confederate states” of California, Arizona, Alaska and New York.

All those above the Mason-Dixon line are on the civil-rights hot-water roster because of a history of hostility to Hispanic citizens. In 2006, for example, the Republican Secretary of State of California rejected 42% of voter registration forms because the names were “unusual” and difficult to type into records! The names, like Chávez and Muhammad, were only “unusual” for Republicans.

New York’s mayor Michael Bloomberg is happy to pre-clear his city’s changes with the Justice Department and has told that to the Court. But once again, as Dr. King said in his Dream speech, in Alabama, the “Governor has his lips dripping with the words of interposition and nullification” — to nullify the 15th Amendment’s right to vote and to interpose himself between federal law and the enforcement of this basic American right.

And the Southland? In 2000, Florida Secretary of State Katherine Harris purged tens of thousands of African-Americans from voter rolls, labeling them “felons” when their only crime was VWB: Voting While Black. All — every one — were innocent. And again, in 2012, Florida Governor Rick Scott targeted 180,000 voters, mostly Latinos, as illegal “alien” voters. The Governor, when challenged by the Justice Department, cut the “alien” list to 198 but in the end, could only produce evidence against one.
If it were not for Section 5, the pre-clearance law, the purges, gerrymandering and other racially bent trickery rampant in Florida, Arizona (with its profiling and harassment of Hispanic voters) and Alaska with its bias against Native Americans would be so much worse. Without review — and the threat of review — Americans would once again lose the rights that the Constitution promises, won with the blood of our Fathers.

At the same time, we cannot ignore the Jim Crow and José Crow tactics that create long lines of voters of color in Ohio and other states.

Presidents Gerald Ford and Ronald Reagan signed massive expansions of the Voting Rights Act, tripling its reach. It is time to extend the law's protections again — to Ohio, to Wisconsin, to everyone.

When every American is protected by the Voting Rights Act review of voting changes, then all of us may be secure that our votes will not be nullified by politicians abusing the voting system to seize office through tactics racist in effect, if not intent.

A half century ago this year, Dr. Martin Luther King shared his dream with America:

"I have a dream that one day this nation will rise up and live out the true meaning of its creed: ‘We hold these truths to be self-evident: that all men are created equal.’

"We can never be satisfied as long as a Negro in Mississippi cannot vote and a Negro in New York believes he has nothing for which to vote. No, no, we are not satisfied, and we will not be satisfied until justice rolls down like waters and righteousness like a mighty stream."

King’s dream is the American Dream — which no Court should take away. It is a mighty stream which must touch all citizens in every state.

Without “pre-clearance,” the Voting Rights Act is an empty promise — with purged, blocked and intimidated voters having to protest after an election to the very officials elected by the vote thievery that put them in office.

If this Supreme Court removes “pre-clearance” Section 5 on the grounds that it does not apply to every state, then the solution is simple and just: apply pre-clearance to every state.  Every American deserves a review by Justice of laws which tell us who can vote — and who can’t.

As King admonished us, we must not be satisfied when we see Black folk, a half century after the passage of the Voting Rights Act, stand in line for six hours to vote whether in Miami or in Cleveland.

We petition the Court and Congress to let freedom ring.

Sign the petition to Defend Martin Luther King's Dream Act - here.

Joining Palast as initial co-signers of the petition are Dr. Charles Steele, Jr., CEO, Southern Christian Leadership Conference, who succeeded Dr. King as President of SCLC and one of the original Freedom Riders, Dr. Bernard Lafayette, Jr.,  co-founder, Student Nonviolent Coordinating Committee.

Watch the film, sign the petition and pass this note on.

Greg Palast has investigated the suppression of the African-American vote in America for BBC Television, The Nation and, with his co-author, Robert F. Kennedy Jr., Rolling Stone. Palast is the author of the New York Times bestseller, with cartoonist Ted Rall, of Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps.

This work is supported by the not-for-profit Palast Investigative Fund. Please support our work in investigation of racial voter suppression with a tax deductible donation to the Fund.

ShareThis

Defend Martin Luther King's Dream Act: Protect the Voting Rights Act & Expand It

Mon, 02/25/2013 - 1:54am

by Greg Palast, Journalist, joined by

Dr. Charles Steele – Chairman, of Southern Christian Leadership Conference
Dr. Bernard Lafayette Jr - Freedom Rider, co-founder, Student Nonviolent Coordinating Committee, Martin Luther King Jr.’s appointee to the Southern Christian Leadership Conference
Mrs. Cathelean C. Steele, First Lady and Director, SCLC Director of Programs (Women's Initiatives)

…and YOU. Sign NOW at Care2.com

Dr. King's Dream Act is under attack. On Wednesday February 27, the U.S. Supreme Court will hear a challenge to the law's requirement that states with a history of Jim Crow voting rules let the Justice Department review new voting procedures. This is the only effective method, today as in 1965, to ensure that every American citizen will not lose their vote because of race or language.

America's heart breaks when we see, a half century after King's Dream speech, African-Americans in Florida standing for six hours to cast their ballot. America's heart breaks when we hear of Latino citizens in Arizona blocked at the polling station door by ID laws and intimidation because of the color of their skin or the language spoken in their homes.

Therefore,

ONE, we respectfully ask the Supreme Court to protect and affirm this "pre-clearance" clause of the Voting Right Act. Without it, the law cannot be enforced.

TWO, we demand that, no matter the Court's decision, Congress extend the "pre-clearance" to every state in America, from Ohio to Wisconsin, to ensure that Dr. King's Dream Act protects every American citizen's right to vote.

Signed,

Greg Palast, author of Billionaires & Ballots: How to Steal An Election in 9 Easy Steps.

Dr. Charles Steele Jr - CEO of Southern Christian Leadership Conference

Dr. Bernard Lafayette - co-founder Student Nonviolent Coordinating Committee, freedom rider, Martin Luther King Jr. appointee to the Southern Christian Leadership Conference, Alabama Voter Registration Project in 1962

 

 

Greg Palast has investigated the suppression of the African-American vote in America for BBC Television, The Nation and, with his co-author, Robert F. Kennedy Jr., Rolling Stone. Palast is the author of the New York Times bestseller, with cartoonist Ted Rall, of Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps.

This work is supported by the not-for-profit Palast Investigative Fund. Please support our work in investigation of racial voter suppression with a tax deductible donation to the Fund.

ShareThis

Too Fat to Vote Will a Supreme Ku Klux Kourt kill Dr. King’s Dream Act?

Fri, 02/22/2013 - 1:14pm

By Greg Palast for Vice Magazine

You know why black folk in the south don't vote? According to The New York Times and the experts at the Pew Charitable Trust, they're just too damn fat!

Normally I wouldn't care what the Times is passing off as fact, except for that, on February the 27th, the US Supreme Court will hear arguments about whether to gut the Voting Rights Act of 1965.

The Voting Rights Act was the law that Martin Luther King Jr had a dream about a half-century ago: that all citizens will be able to exercise their right to vote. But, like all pleasant dreams, morning means waking up to the ugly reality sleeping next to you.

The pug-uglies in this case are the four Supreme Court justices hostile to the Act. If one more joins them, you can kiss Martin's dream goodbye.

The dream-busters are led by Chief Justice John Roberts. In 2009, he wrote, "The historic accomplishments of the Voting Rights Act are undeniable." But – and Roberts' "but" is huge – the Act is out of date and "fails to account for current political conditions".

According to Roberts, "Jim Crow laws" – the apartheid rules used in the Deep South to keep African-Americans from the polls – have long passed away.

It's true, black folks now fare better in Dixie. Why, just last week, Mississippi ratified the 13th Amendment to the Constitution, abolishing slavery 147 years after Lincoln signed the Emancipation Proclamation (I kid you not).

So, Roberts is ready to dump the key enforcement provision of the Voting Rights Act – the "pre-clearance" requirement.

Sixteen states must "clear" any changes in voting procedures with the US Department of Justice. That's to make sure there's no racial monkey business – that new rules aren't clever tactics meant to remove black, brown, Native American, Catholic, Mormon or other minority voters.

In the current case before the Court, some Rebel states are hollering that they were unfairly singled out for this special scrutiny.

However, it was arithmetic in the law, not the Civil War, that put Mississippi on the list. Before the Act, only seven percent of its black citizens were registered to vote, below the law's 50 percent line.

In November, at least a few Americans got quite upset to see television coverage from Florida of long lines of black folk waiting four or five hours to vote for the President. So is Jim Crow really dead and gone in Dixie?

That's the weighty question addressed by the prestigious Pew Charitable Trust.

Why pick on Dixie? After all, despite the hours-long lines of Black voters in Florida we saw with our own eyes, Pew shows that there's only a 23 minute wait to vote in Florida – less time than it takes to cast a vote in Indiana. Overall, Florida ranks near the best in Pew's "Elections Performance Index". Let's give a medal to Florida's former Secretary of State, Katherine Harris!

Pew was advised by Yale law professor Heather K Gerken, who explained the study for the New York Times.

"Poor Southern states perform well, and they perform badly. Rich New England states perform well and badly – mostly badly," she said. In other words, Justice Roberts is right: "The evil that [Voting Rights Act Section 5] is meant to address may no longer be concentrated in the jurisdictions singled out for preclearance."

In other words, why single out Florida and the 15 others?

But wait. Something's missing: colour. Sure, the average Floridian waited 23 minutes to vote, but what about black voters?

In November, I joined African-American voters on "Souls to the Polls" day. Their wait for a ballot: four hours. Then I went up the road to an all-white polling station. Wait: zero minutes. There were unused rows of balloting machines, more poll workers than voters and a pot of coffee brewing for the pale suburban-Americans casting ballots.

And Oddly, despite a hot, hot Presidential contest with an African-American candidate, by mid-May 2012, the Census Bureau reported that the number of African-Americans registered declined by over one million. Hispanic names on voter rolls fell, too, despite massive registration drives. A big decline in voters of colour was reported in the South's huge swing state, Florida.

So, overall voter turnout fell short. But the reason, according to the Pew expert featured in the Times, is that, "States in the Deep South with high obesity problems seem to be having a problem getting people to the polling place."

Apparently, citizens of colour south of the Mason-Dixon line are just too fat to vote.

Maybe there's another explanation for black and Hispanic names disappearing from the polls. Willie Steen, a Gulf War veteran, was removed from the voter rolls in 2000 because the Republican Secretary of State of Florida listed him as a felon. I met Steen. He'd never got so much as a parking ticket. He was, like tens of thousands of others, guilty of "VWB"; Voting While Black.

Secretary of State Katherine Harris sent Steen a note of apology for the "error", but only after the election of George W Bush. Then, in 2004, Steen, who is quite slender, was purged again.

Steen's name matched that of an Ohio felon named "O'Steen" on a database created by Republican hacks. The name-match game cost 58,000 innocent voters their registrations in just one year.

This was just one method of nine used to hold Florida's black voting rate to 58 percent compared to 65 percent for whites.

Jim Crow isn't dead, he's just changed his white sheets for spreadsheets.

In 2012, Florida's new Republican Secretary of State Ken Detzner again set out to bleach the voter rolls whiter than white.

Using lists of illegal aliens, the GOP hack marked 182,000 (!) voters whose names matched the deportees.

But wait: it's a jail-time crime for a non-citizen to register or vote, so that's one heck of a crime wave.

So how many illegal foreign voters were arrested in Florida? One: an Austrian-Canadian gun aficionado.

Yet, nearly one in ten Hispanic voters would have been barred from the polling booth. But, at the last moment, federal voting rights law stopped the Republican's latest José Crow manoeuver.

But wait – if the Voting Rights Act required Florida to get federal approval for voter roll purges, how could Steen and other black men have been stripped of their rights?

Answer: Florida lied. The state used a loophole in the Voting Rights Act, claiming the purge was not a change in rules, just a clerical clean-up of the voting lists.

What's the solution to the new trickery? Not, as Justice Roberts suggests, to eliminate Section 5, but to expand it.

Indeed, the reach of the Voting Rights Act was massively expanded by presidents Gerald Ford and Ronald Reagan. Reagan!

As a result of their changes, states designated officially racist include the Confederate states of… California, Arizona, New York, New Mexico, South Dakota and Alaska. Alaska? You betcha!

And for good reason. Take California – under a Republican Secretary of State, Bruce McPherson, 42 percent of voter registration forms were rejected, an overwhelmingly amount of those Hispanic, Arab-American and Asian. Jim Crow, it seems, became a surfer dude.

In 2004, in McKinley County, New Mexico, only one in ten voters cast a ballot for President – at least, that's what the machines said. In fact, the voting machines simply disappeared the vote – almost all cast by Navajo Natives. Unfortunately McKinley was, by that time, "bailed out" of the Voting Rights Act, which any state can do by proving it no longer discriminates. (Apparently there's not much you have to prove.)

And those lines I filmed of black voters standing for hours and white voters waltzing in for a ballot without a wait? That was in Ohio, with arguably the most racially bent voting system in America. (When the black voters finally made it to the voting station, I discovered they'd been given "absentee" ballots, subject to challenge, rather than the regular ballots given to the white voters.)

The horror show in Ohio does not absolve the racist voting systems of Florida, it merely calls for another expansion of the pre-clearance list to reflect a new reality. Jim Crow voting games are more widespread and far more sophisticated today than in 2000 when I first uncovered the Florida black-out.

That's because Jim Crow is now Dr James Crow, database analyst, a hired gun who knows it's easier to win elections by blocking voters rather than winning their votes. Identifying and challenging "suspect" voters is far more effective in chasing away black than burning crosses.

In 2012, cyber-guru Karl Rove created a massive voter profiling system called Data Trust. Rove stated then that, for example, "Even a small drop in the share of black voters would wipe out [Obama's] winning margin in North Carolina. If [black voters'] share of turnout drops just one point in North Carolina, Mr Obama's winning margin there is wiped out two and a half times over."

A little purge goes a long way. Add in a requirement of voter IDs with photos (which Indiana used to bar about 72,000 black voters this year), and voting games, not voters, will pick our government.

The solution is not for the Supreme Court to let Jim Crow ride again through the Southland, but another expansion of pre-clearance scrutiny to Ohio, Indiana and those states that need a little Reconstruction.

*  *  *  *  *  *  *

Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

MEDIA REQUESTS: For interviews contact us.

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

Thousands demand Obama to Smoke Pipe

Tue, 02/19/2013 - 11:25am

Rally Against Keystone XL Pipeline
Photos by Zach D Roberts, photojournalist funded by the Palast Investigative Fund, at Sunday's rally in Washington DC, on assignment for Truth-out.  More photos here.

ShareThis

"I want my fair share –and that's ALL OF IT." The Kochs & the XL Pipeline

Thu, 02/14/2013 - 1:20pm

By Greg Palast for Vice Magazine

Activists alert:
Robert F. Kennedy Jr. and his son Connor Kennedy were arrested Wednesday in Washington while protesting against approval of the Keystone XL Pipeline.
A rally in Washington, DC, protesting the Pipeline, has been called by Forward on Climate for Sunday, February 17.
Bobby Kennedy, my partner in these investigations, is a contributor to Billionaires & Ballot Bandits: Greg Palast investigates Karl Rove, the Koch Gang & their Buck Buddies, the book on which this report is based.

According to the transcript of the secretly recorded tape, Charles Koch was chuckling like a six-year old. Koch was having a hell of a laugh over pilfering a few hundred dollars' worth of oil from a couple of dirt-poor Indians on the Osage Reservation.

Why did Koch, worth about $3 billion at the time (now $20 billion) need to boost a few bucks from some Indian in a trailer home? Koch answered:

"I want my fair share – and that's all of it."

Now "all of it" includes a pipeline, the Keystone XL, which would run the world's filthiest oil, crude made from tar sands, down from Canada to his family's refinery on the Gulf Coast of Texas.

This is Part 2 of "The Koch Brothers, Hugo Chavez and the XL Pipeline." Part 1 explains that the Koch Oil refinery can only "crack" heavy crude from Venezuela—which costs $33 a barrel more than tar sands heavy oil. But Canada's cheap crude cannot get to Texas without a new, giant pipe. XL would save the Kochs nearly $3 billion a year.

Problem: the Keystone XL tar-oil tube would endanger the largest US water sources, vastly increase pollution in the USA and measurably heat the planet.

Solution: Congressman Tim Griffin.

Congressman Griffin is sponsoring the bill to force the Obama Administration to approve the XL Pipeline without the environmental review now required by law.

What's odd is that Griffin represents Arkansas, a state with no stake in the Pipeline.

But the Kochs have a stake in Griffin. In his maiden run for Congress, Griffin was elected with an eye-popping $167,000 donation from the Kochs. For $167,000, any congressman will wash your car – with their tongue.

For the Kochs, $167K is peanuts. Their political action operation, Americans for Prosperity, built a quarter billion dollar fund this past year, a sum never seen even in the US politics cash swamp.

Global Warming Denial as a Profit Center

To answer the concerns about global warming raised by the XL and the Kochs' oil business, the billionaire brothers have bankrolled a gold-plated campaign of global warming denial.

For example, Americans for Prosperity funded "Hot Air Tour" rallies across the US with the slogan, "Global Warming Alarmism: Lost Jobs, Higher Taxes and Less Freedom." More rallies were held by the Koch-funded FreedomWorks, a foundation which has seized control of the Tea Party movement—and redirected populist rage against plutocrats. FreedomWorks transformed the Tea Party into a used tea bag, dangling from the Kochs' string.

Break the Law then Re-make the Law

States on the pipeline's route could block the Keystone XL, but the crucial extension will originate in Oklahoma where the Kochs have cowed all resistance to their needs.

The Kochs' power to terrorize politicians in Oklahoma and the West originates in that case of Osage tribe's missing oil.

FBI agents filmed Koch Oil men pilfering the crude, had witnesses to Koch's directives to siphon the oil, and more. The US Justice Department drafted a criminal indictment of Koch Industries and Defendant "67C" (reportedly Charles Koch himself) for "Crime on an Indian Reservation" and racketeering, big-time jail-time offenses.

That's when Koch Oil drilled down and struck Bob Dole, the nation's most powerful Senator, the Republican Majority Leader.

Dole (representing Kansas), joined by a Koch-funded Senator from Oklahoma, Don Nickles, had the federal prosecutor who brought the case fired. Case closed except for a few million paid to the Osage for some of their stolen oil.

Dole ran for President using Koch money given to Dole's not-for-profit foundation. It was a cheap buy for the Kochs because it was illegal – so Dole, when caught, had to give it back.

But one Senator wouldn't let the oil theft go: Dennis DeConcini, chairman of the Senate Special Committee on Investigations whose report concluded, "Koch Oil is the most dramatic example of an oil company stealing by deliberate mismeasurement and fraudulent reporting."

The Kochs didn't like that. And when the Kochs don't like something, or someone, it's notably more serious than a ‘thumbs down' on your Facebook page. In 1996 (yes, I've been investigating the Kochs for that long), DeConcini told me the Kochs warned him that if he published and stood by the Senate's and the FBI's findings, the Kochs would destroy the Senator's political career. They did.

Then there was the matter of the 97-count criminal indictment of Koch Oil for dumping poisonous crude sludge into rivers in six states. The Kochs didn't merely want to beat the rap—they wanted to continue dumping.

That would require buying a whole new Congress. No problemo, Pardner. In 1996, Koch Industries, through a fake front called Coalition for our Children's Future, secretly funded millions of dollars in vicious attack ads against vulnerable Democrats just days before the election.

As a result, Republican Newt Gingrich kept his post as Speaker of the House of Representatives. Gingrich pushed an agenda he called "The Contract with America", which would eliminate criminal sanctions for pollution and slash rules against polluting. The Center for Public Integrity said it "seems to have been drafted and designed for Koch interests."

Wrong. The Contract was drafted by the Kochs and crafted at the Heritage Foundation, a think-tank the Kochs founded.

Bill Clinton's Administration, though nominally Democratic, went easy on Koch interests. Vice-President Al Gore especially, head of the Reinventing Government Commission, attacked regulations with more verve than Ronald Reagan or Margaret Thatcher. Gore's anti-regulation guidebook was the "Mandate for Change" drafted by the Democratic Leadership Council. It was the DLC that had launched the career of the previously unknown Bill Clinton, its first chair, and Al Gore's career as well. The DLC was created with $100,000 of Koch money.

The Kochs use of fronts for corporate donations to politicians was plain illegal—until, in 2010, the US Supreme Court decriminalized this game in the Citizens United case. The lawyer for Citizens United is Ted Olson, whose day job is representing Koch Industries.

Note: The Kochs are bi-partisan employers. They also retain lawyer Bob Strauss, former Chairman of the Democratic Party.

The Themis Machine

As if their billions, their think tanks, lawyers, fronts and political action fund were not enough to scare the bejeezus out of politicians, there is Themis. Themis, created by the Kochs, is the nation's most sophisticated, detailed database on every American living, surpassing the most demonic dreams of the FBI.

Themis, for example, knows the last time you, Jack, downloaded porn.

Given their power and their Themis, is it really possible for a few greenies and some fact-afflicted scientists to stop the Kochs from jamming their pipeline right up our aquifers?

Absolutely. Indeed, that's the only way it will be stopped, because the Kochs have already put the politicians in their pipe and smoked them.

*  *  *  *  *  *  *

Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

MEDIA REQUESTS: For interviews contact us.

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

Billionaire Burglar Breaks into Obama's Cabinet Pinch-Penny Pritzker pockets Commerce post

Wed, 02/13/2013 - 4:58pm

By Greg Palast for Truth-out

A parade of media reports this week name Penny Pritzker as Obama's prime choice for Secretary of Commerce. No longer will criminal bankers have to lobby the administration - because now they'll have one of their own in the Cabinet.

We never heard of this guy Barack Obama until 2004. Less than three years before taking the presidency, he was in the Illinois state senate, a swamp of scammers, backhanders, and party machine tools - not a stellar launch pad for the White House. And then, one day, state Sen. Barack Obama was visited by his fairy godmother. Her name is Penny Pritzker.

Penny's from Heaven?

Pritzger's net worth is listed in Forbes as $1.8 billion, which is one hell of a heavy magic wand in the world of politics. Her wand would have been heavier, and her net worth higher, except that in 2001, the federal government fined her and her family $460 million for the predatory, deceitful, racist tactics and practices of Superior, the bank-and-loan-shark operation she ran on the South Side of Chicago.

Superior was the first of the deregulated go-go banks to go bust - at the time, the costliest failure ever. US taxpayers lost nearly half a billion dollars. Superior's depositors lost millions and poor folk in Sen. Obama's South Side district lost their homes.

Penny did not like paying $460 million. No, not one bit. What she needed was someone to give her Hope and Change. She hoped someone would change the banking regulators so she could get away with this crap.

Pritzker introduced Obama, the neophyte state senator, to the Ladies Who Lunch (that's really what they call themselves) on Chicago's Gold Coast. Obama got lunch, gold and better - an introduction to Robert Rubin. Rubin is a former Secretary of the Treasury, former chairman of Goldman Sachs and, when Robert met Barry, co-chairman of Citibank. Even atheists recognized Rubin as the Supreme Deity of Wall Street.

Rubin opened the doors to finance industry vaults for Obama. Extraordinarily for a Democrat, Obama in 2008 raised three times as much from bankers as his Republican opponent.

This article is based on the chapter Penny's from Heaven?
From Palast's New York Times Bestseller Billionaires & Ballot Bandits with comics by Ted Rall.
Donate and get a signed copy.

So what did Citibank's Rubin get for showering Obama with gold? Obama agreed to take care of Rubin's poodles, Larry Summers and Tim Geithner. They became Obama's first cabinet picks: Summers as Economics Czar and Geithner as his czarina, Secretary of the Treasury.

Geithner and Summers were the gents who, under Treasury Secretary Rubin, designed the deregulation of banking. In effect, they had decriminalized the kind of financial flim-flammery that brought the planet to its knees while bringing Rubin, Pritzker and the banksters loads of lucre.

So, in 2008, Summers and Geithner were put back in the saddle - Obama's horse but Rubin's saddle.

Rubin received more than $100 million from Citigroup, the gargantuan commercial bank/investment bank/casino created by deregulation. It is worth a mention that Rubin's centi-million-dollar payoff went unchallenged by Citi's new owner, the US Treasury, which had put up more than a trillion dollars in loans and guarantees to pull Rubin's creature out of bankruptcy.

Rubin rocked, but Penny was pissed off.

Pritzker had taken this state senator/community organizer from the ghetto, made him a US Senator, then, as Obama's campaign finance chairwoman, raised a mind-blowing three-quarters of a billion dollars to make him president.

In return, in 2008, Obama decided to make his patron Penny the Secretary of Commerce. But then, in November 2008, just as Obama was about to submit her nomination to Congress, a bunch of Pritzker's victims marched on Washington. They were not from her busted bank, but unhappy workers from the lucrative nursing homes that her family owns through a string of complex offshore trusts. Obama slammed the door on Penny pronto.

In the 2012 campaign, Obama, to his credit, kept the door shut on Pritzker, reducing her to hosting an election fundraiser at her Gold Coast digs, which she had to bill as a Goldman Sachs PAC event. This marks possibly the first time anyone has used Goldman Sachs as a PR cover.

The Pritzker family made its billions mostly from Hyatt Hotels and Hyatt nursing homes. Penny, on the Hyatt board of directors, is an infamously combative anti-union apostle. UNITE HERE, the union that represents Hyatt workers, has called for an international boycott of Hyatt hotels. In 2012, UNITE HERE and its parent, the AFL-CIO, were crucial to Obama's winning Ohio, Michigan and Wisconsin. So, in this last campaign, Obama had to keep his billionairess heiress on the down-low.

But today, with the unions' money and votes already pocketed and counted, Obama can give working folks The Finger and give Penny her pound of flesh: the Commerce post.

The New York Times says that, "At Commerce, Ms. Pritzker could provide the president with a new way to reach out to the business community." The last time Pritzker reached out to the business community was to sell them sub-prime mortgage securities, worthless bags of financial feces manufactured by Superior Bank.

If Penny the Piggy Banker gets Commerce, we'll have to drop Obama's rating to sub-prime.

So what are you going to do about it?
Join with the union maids at:
*  *  *  *  *  *  *
Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

MEDIA REQUESTS: For interviews contact us.

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

The Koch Brothers, Hugo Chavez and the XL Pipeline

Thu, 02/07/2013 - 7:26pm

By Greg Palast for Vice Magazine and The Other 98%

I’ve been tracking a tube of black putrid ooze, a toxic viper slowly slithering 2000 miles across the belly of America, swallowing all water aquifers, politicians and reason in its path.

The XL Keystone Pipeline.

As Nagini, the murderous snake in the Harry Potter tales, had its master Voldemort, I figured the Keystone XL Pipeline much also have its own dark lords.

I smelled Koch.

David and Charles Koch are each worth $20 billion--and they’re quite certain that’s not enough.  And so they need the XL Keystone Pipeline.

The XL Keystone will take Canadian tar-sands oil, the filthiest crude on the planet and suck it down to Texas Gulf Coast refineries. Alberta’s oil-glop reserve, if it can get to the US market, will warm the planet by nearly .4°C all by itself.

Why in the world would America pistol-whip Mother Nature to bring oil to Texas? I mean, it’s just plain weird to suck heavy tar oil out of Canada, drag it across the entire middle of the USA to import it into the oil-exporting Lone Star State.

Here’s where a little lesson in oil chemistry comes in.  You can’t just throw any old crude oil into an oil refinery.  These giant filth factories are actually quite sensitive.  The refineries of the Texas Gulf Coast are optimized for heavy crude.

It would cost billions of dollars to rebuild the giant Flint Hills Corpus Christi Refinery, owned by Koch Industries, to use the less-polluting Texas oil drilled nearby.

The Kochs need heavy crude. But the Brothers Koch have a problem.  Heavy crude is controlled by a heavy dude – President Hugo Chavez of Venezuela.

In case you haven’t heard, the US Department of Energy now says Venezuela, not Saudi Arabia, has the world’s largest petroleum reserve--including the overwhelming majority of the planet’s heavy crude.

And Chavez is not giving it away.  “We are no longer an oil colony, Mr. Palast,” Chavez told me in one of our meet-ups in Caracas.

He wasn’t kidding.  Venezuela’s export price now averages around $100 a barrel.

Read the full article at Vice Magazine. This week, readers may download, without charge, The Assassination of Hugo Chavez, the film based on Greg Palast’s investigations for BBC Television, The Guardian and Harper’s.

So the Kochs have turned their gaze upward--to Canada, where Alberta oil men are selling their tar-sands gunk for a whopping $33 a barrel less than Chavez Heavy.  Do the math:  With 289,000 barrels a day refined at Corpus Christi, switching to Canadian Tar from Venezuela Heavy could put $3 billion a year extra into the pockets of the Kochs.

Koch Brothers, sample card from Palast’s 2004 Tarot-size playing cards. (Yes, the Kochs really were worth only $6 billion then).

However, there’s a problem.  Between Canada and Houston is the United States.  At the moment, there’s no pipeline that can take all that cheap crude south.  The southbound pipeline network now chokes at Cushing, Oklahoma, which is already blocked with 47 million barrels of crude sitting in storage tanks with nowhere to go.

The XL Pipeline would act as an oil enema, releasing the impacted inventory, enriching the Gulf refineries.

Cheap crude oil will then flow south, but as Canadian economist Robyn Allan writes, “It's the refining sector that sees the benefit of lower priced WCS [West Canadian Sands oil] in the form of windfall profits from low feedstock costs.”

The gusher of cheap crude from a new pipeline will enrich the refiners … none more so than refiners named Koch.

So all the Kochs have to do is get the US government to agree to pop a pipe through Cushing to Houston—the Keystone XL.  But that would require that the US government go stark raving mad, commit environmental suicide, reverse all policy to slow global warming -- all to bring in foreign oil while the US itself is suffering from a major oil and gas glut.

How will the Kochs pull that off?  Easy. They only need a diplomatic war with Venezuela, and their “Themis” machine, a unique tool which can drill deep into huge reserves of heavily-oiled politicians.

– Read the full article at Vice.com.

More on that next week...

Activists alert:

All major environmental groups will hold the Forward on Climate Rally against the XL Pipeline in Washington, DC on February 17.

*  *  *  *  *  *  *

Get the real skinny on the Brothers Koch in “Petroleum Porn: the XXXL Pipeline,” in the New York Times bestseller, Billionaires & Ballot Bandits: Greg Palast investigates Karl Rove, the Koch Gang and their Buck Buddies.

Palast is also the author of the New York Times bestseller The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

MEDIA REQUESTS: For interviews contact us.

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis

Aaron Swartz Died for Piers Morgan's Sins

Wed, 01/30/2013 - 2:48pm

By Greg Palast for Vice Magazine

This is the tale of two geniuses.  One on TV.  One Dead.

Portrait of a Genius (Not Piers Morgan)

In 2000, Aaron Swartz, aged 14, had just released his astonishing invention, RSS, liberating news and information, replacing the selection of the tiny minds of editors with your own wide judgment.

Around the same time, one of Piers Morgan's stringers hacked into the phone of Sir Paul McCartney's wife and stole some highly personal, and highly valuable, information – the type of gossip used to sell Morgan's grotty little scandal sheet, The Daily Mirror, the cornerstone of Morgan's $20 million fortune based on tittle and titties.

Electronic burglary for profit is a crime in the UK and USA both. But Piers is serving time on prime time, on CNN.

Aaron Swartz did not get a TV show.  The Robin Hood of the Information Liberation Front faced 35 years in prison for a selfless act of civil disobedience.  Swartz was charged for the crime of attempting to liberate documents from JSTOR computers.  JSTOR is the Goldman Sachs and Politburo of university research papers, a giant information sucker squid that hordes research and discoveries crucial to the public - the public which paid for most of the research.

(If Oxford joined JSTOR when Isaac Newton published, only a well-heeled elite would have the secret of thermodynamics.  If Newton worked for Microsoft, we'd be paying a royalty for the use of gravity.)

Aaron, rather than face a life in Obama's dungeon, chose suicide.  And Piers?

This is Part IV of "Alex Jones, Guns, Piers Morgan & My Penis," my first series of columns for Vice magazine.  Get the whole series at www.Vice.com - including the full version of this story.  This week only, at the Vice site, readers may download my bestseller, Billionaires & Ballot Bandits, free of charge.  

Next Wednesday in Vice:  The XL Keystone Pipeline, Hugo Chavez and the Brothers Koch.

Piers liberated information as well - but for his own profit.  To his loot from hacked gossip, Piers added fraud on the stock market.  His scheme:  Two of Morgan's influential financial columnists would make recommendations to the rubes reading The Mirror. Piers bought the stocks just before they were boosted in his paper. and thereby pocketed tens of thousands of dollars when the stocks got tips went public. His co-conspirators, the reporters, got jail time. Not Piers. He admitted to the profiteering and walked away with a fine.

So how did Piers get through US immigration when surrounded by a cloud of criminality? Easy: Morgan's a "genius."

Piers Morgan (L) and  US Ambassador to the Queen Louis Susman (R) at the Mandarin Oriental Hotel.  The guy in the middle is a literary agent cadging free drinks.

The US embassy gave him a rare O-1 work permit, known as the "Genius Visa" for "the individual who possesses extraordinary ability in the sciences, arts...".

Odd that: Genius or not, US laws, especially the mellifluously titled, "Anti-terrorism and Effective Death Penalty Act" of 1996, bar work visas to those who have admitted to "the essential elements of a crime" including fraud and white collar felonies.

But the US Embassy can exercise its "discretion" on visas. And no one is more discrete than the US Ambassador to the Court of St. James, Mr. Louis Susman, whose credentials are listed as former Vice-Chairman of Citibank and "prolific fundraiser for [the] Democratic Party". Susman's embassy did a thorough review of Piers' visa and stamped Piers a genius and innocent as a lamb. (Here is a photo of Ambassador Susman with Piers at the CNN launch party of Morgan's show.)

What does "genius" Morgan have to do with the horror of the arrest and death of Aaron Swartz?

It's the story of How The System Works—and Whom It Works For
Swartz, after creating RSS, went on to co-found internet phenomenon Reddit, then social activist group Demand Progress and was named Research Fellow at Harvard University's Safra Center for Ethics.  From there, he led the national uprising against SOPA, the Stop Online Piracy Act, which would have criminalized the spread of information and corporatized its control – all by the age of 26.  (Makes you question what the hell you've been doing all these years.)

I've read the Justice Department's indictment of Swartz.  The charge would have made Pinochet blush—and Torquemada proud.  Swartz hoped to make public millions of university research papers, as the Great Liberator had already done for federal court records.  Our rulers couldn't tolerate this any more than Kings and Popes could accept the printing press and translations of the Bible.

The Internet was supposed to bring us freedom by making the world's information available to all.  No tyrant, no corporation, no commercial or political monopolist could keep vital information from even the remotest village.  But electronic democracy, the free flow of information, has always scared the crap out of the political and commercial oligarchs.

Did Aaron Swartz deny the oligarchs the ability to extract a monopoly rent for information rightly belonging to us? Of that he was guilty.  And by stopping the "Stop Online Piracy Act," he stopped the theft of our online discourse.  Our rulers determined Swartz had to be punished.

But they would never punish Piers–because Piers Morgan is the puppet clown of the information counter-revolution.  I joke about Piers and his newspaper's attack on my penis —but, as I've explained last week [See "Piers Morgan and My Pee-Pee'] , Morgan's un-humorous purpose was to smear this reporter to discredit my investigation of the corporate takeover of the British government, his two masters.

You might find it ironic that the government gave Morgan, the fraudster, a Genius visa while indicting Swartz, a true genius.

But that's the genius of the system.  Democrats and Republicans, Microsoft and Citibank, not to mention the Chinese Politburo, need a huckster like Morgan who, for a mere $2 million from Time Warner (CNN's owner) will present whatever tickles his bosses and betters.   Whether the host of Piers Morgan Tonight is fawning on the feckless landlords of the planet ("Romney is one of the least principled politicians I've ever met – and [so] Mitt Romney might just save America"), or merely distracting the public with Britney Spears and pretend controversies, America will be defended from real information by his puppet show.

Should we deport Piers?  Yes:  certainly America's Got Talent has got to be a deportable offense.  But as long as the puppeteers dangle $2 million strings, they'll just find another willing Pinocchio with the genius to let their show go on.

– Read the full article at Vice.com.

*  *  *  *  *  *  *

Palast is the author of the New York Times bestsellers Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, The Best Democracy Money Can Buy, Armed Madhouse and the highly acclaimed Vultures' Picnic, named Book of the Year 2012 on BBC Newsnight Review.

Visit the Palast Investigative Fund's store or simply make a contribution to keep our work alive!

MEDIA REQUESTS: For interviews contact us.

Subscribe to Palast's Newsletter and podcasts.
Follow Palast on Facebook and Twitter.

www.GregPalast.com

ShareThis