by Peter Dale Scott
February
2017
from
WhoWhatWhy Website
Peter Dale Scott is a former Canadian diplomat,
Professor of English at the University of California,
Berkeley, co-founder of the Peace and Conflict Studies
program at Berkeley, poet, and 2002 recipient of the
Lannan Poetry Award.
His political books include Deep Politics and the Death
of JFK (1993), The Road to 9/11: Wealth, Empire, and the
Future of America (2007), The War Conspiracy: JFK, 9/11
and the Deep Politics of War (2008), American War
Machine: Deep Politics, the CIA Global Drug Connection,
and the Road to Afghanistan (2010), The American Deep
State: Wall Street, Big Oil, and the Attack on U.S.
Democracy (2014) and Dallas '63: The First Deep State
Revolt Against the White House (2015). A complete
bibliography can be found on his website at
http://www.peterdalescott.net. |
Part 1
February
6, 2017
Photo credit: Adapted by WhoWhatWhy
from
geralt / Pixabay, US Government / Wikimedia, Ipankonin /
Wikimedia (CC BY-SA 3.0), Geek3 / Wikimedia (CC BY-SA 3.0),
MesserWoland /
Wikimedia (CC BY-SA 3.0), Unknown /
Wikimedia and US Government / Wikimedia.
When the uninitiated think of the
"Deep State," they tend to imagine
a group of men getting together in a room, smoking cigars and
plotting world domination.
But the Deep State is not one coordinated
network of people controlling the government from the shadows.
Instead, it refers to individuals and groups that have the resources
to shape the direction of the world to their benefit and don't
hesitate to make use of them.
At times, the interests of different
factions of the Deep State collide.
That often happens when the
direction of the world is rapidly changing, as is the case now after
the election of Donald Trump.
Nobody knows this better than Peter Dale Scott, the foremost expert
on the US Deep State.
Below, you will find a new introduction to the
paperback version of The American Deep State: Big Money, Big Oil,
and the Struggle for U.S. Democracy, Updated Edition (copyright
2017), (with permission of the publisher, Rowman & Littlefield. All
rights reserved).
On February 3, 2017, the Wall Street Journal reported President
Trump's plans to pave the way for a broad rollback of the recent
financial reforms of Wall Street. [1]
Although no surprise, the news
was in ironic contrast to the rhetoric of his campaign, when he
spent months denouncing both Ted Cruz and
Hillary Clinton for their
links to Goldman Sachs, even when his campaign's Financial Chairman
was a former Goldman Sachs banker, Steve Mnuchin (now Trump's
Treasury Secretary).
Trump was hardly the first candidate to run against the banking
establishment while surreptitiously taking money from big bankers.
So did Hitler in 1933; so did Obama in 2008.
(In Obama's final
campaign speech of 2008, he attacked,
"the greed and irresponsibility
of Wall Street.". [2]
But it was
revealed later that Wall Street bankers and financial insiders,
chiefly from Goldman Sachs, had raised $42.2 million for Obama's
2008 campaign, more than for any previous candidate in history.)
[3]
However, Trump's connections to big money, both new (often
self-made) and old (mostly institutional) were not only more blatant
than usual; some were also possibly more sinister.
Trump's campaign
was probably the first ever to be (as we shall see) scrutinized by
the FBI for "financial connections with Russian financial figures,"
and even with a Russian bank whose Washington influence was attacked
years ago, after it was allegedly investigated in Russia for
possible mafia connections. [4]
Trump's appointment of the third former Goldman executive to lead
Treasury in the last four administrations, after Robert Rubin (under
Clinton) and Hank Paulson (under Bush), has reinforced recent
speculation about Trump's relationship to what is increasingly
referred to as
the "Deep State."
That is the topic of this essay.
But we must first see what is really meant by 'the deep state'.
What Is Meant by the Deep State?
Since 2007, when I first referred to a "deep state" in America, the
term has become a meme, and even the topic of a cautious essay in
The New York Times. [5]
Recently it has been enhanced by a new meme,
"the 'deep state' versus Trump," a theme that promoted Donald Trump
as a genuine outsider, and entered the electoral campaign as early
as August 2016. [6]
Trump reinforced this notion when he expressed opposition to
America's international defense alliances and trade deals that both
traditional parties had long supported, as well as by his promise to
"drain the Washington swamp."
It was encouraged again post-election
by Trump's longtime political advisor Roger Stone, formerly of the
Washington lobbying firm Black, Manafort, Stone, and Kelly,
once a major feature of that swamp. [7]
But those who saw the election as a contest between outsider Trump
and a "deep state" tended to give two different meanings to this new
term.
On the one hand were those who saw the deep state as,
"a
conglomerate of insiders" incorporating all those, outside and
inside the traditional state, who "run the country no matter who is
in the White House
and without the consent of voters." [8]
On the
other were those who, like Chris Hedges, limited the "deep state"
to those perverting constitutional American politics from the margin
of the Washington Beltway:
"the security and surveillance apparatus,
the war machine." [9]
But both of these simplistic definitions, suitable for campaign
rhetoric, omit the commanding role played by big money - what used
to be referred to as Wall Street, but now includes an increasingly
powerful number of maverick non-financial billionaires like the Koch
brothers.
All serious studies of the deep state, including
Mike
Lofgren's The Deep State and Philip Giraldi's
Deep State America as well as this book, acknowledge the
importance of big money. [10]
It is important to recognize moreover, that the current division
between "red" and "blue" America is overshadowed by a corresponding
division at the level of big money, one that contributed greatly to
the ugliness of the 2016 campaign.
In The American Deep State (p.
30), I mention, albeit very briefly, the opposition of right-wing
oilmen and the John Birch Society,
"to the relative internationalism
of Wall Street." [11]
That opposition has become more powerful, and
better financed, than ever before.
It has also evolved.
As I noted in The American Deep State, (p. 14),
the deep state,
"is not a structure but a system, as difficult to
define, but also as real and powerful, as a weather system."
A
vigorous deep state, like America, encompasses dynamic processes
continuously generating new forces within it like the Internet - just as a weather system is not fixed but changes from day to day.
The Current Divisions in America and Its Wealth
Three days before the inauguration of Donald Trump, "Frontline" on
PBS began a two-part program, "Divided States of America,"
documenting how the polarization of American public opinion has
contributed to both stagnation in Washington and widespread popular
anger, on both the left and the right, against the traditional
two-party system.
The Frontline show failed to address the major role played by money
in aggravating this public division.
For example, it followed many
popular accounts in tracing the emergence of the tax-revolt Tea
Party to the apparently spontaneous call on February 19, 2009, by
CNBC reporter Rick Santelli in Chicago, for a "tea party," in
response to President Barack Obama's expensive bailouts. [12]
However, this event (on the floor of the Chicago Mercantile
Exchange, a deep state institution) was not only staged, it had been
prepared for in advance.
A domain name, chicagoteaparty.org, had
been registered for it in 2008, before Obama had even been
elected. [13]
Jane Mayer has conclusively demonstrated the role in
the funding groups behind the Tea Party played by the brothers
Charles and David Koch, who in 2014 were two of the ten richest
people on earth, worth a combined $32 billion as owners of the
largest private oil company in America. [14] (Today their wealth is
estimated at $84 billion.)
More important, as Mayer pointed out,
the Tea Party was not
"a new strain" in American politics.
The scale
was unusual, but history had shown that similar reactionary forces
had attacked virtually every Democratic president since Franklin
Roosevelt.
Earlier business-funded right-wing movements, from the
Liberty League [of the 1930s] to the John Birch Society to [Richard
Mellon] Scaife's [anti-Clinton] Arkansas Project, all had cast
Democratic presidents as traitors, usurpers, and threats to the
Constitution.
The undeniable
element of racial resentment that tinged many Tea Party rallies
was also an old and disgracefully enduring story in American
politics. [15]
The Kochs' lavish funding of the Tea Party, along with anti-tax
candidates and climate-change deniers, was only one more phase in
what I described in 1996 as,
an enduring struggle between
"America Firsters" and "New World
Order" globalists, pitting, through nearly all of this [20th]
century, the industry-oriented (e.g. the National Association of
Manufacturers) against the financial-oriented (e.g. the
Council on Foreign Relations),
two different sources of wealth. [16]
A decade later Trump has revived the slogan of
"America First!", and
vowed to reconsider both NATO and multilateral trade.
Both factions
are still there today; but, as we shall see, both now have
international connections.
American Politics and the Increase in Wealth Disparity
Mayer's helpful overview overlooks the alarming increase in wealth
disparity since 1980 and especially in the last decade.
Ten years
ago, when I published The Road to 9/11, I noted that 225
billionaires owned as much as the bottom fifty percent of people in
the world, and I repeated Kevin Phillips' warning that,
As the twenty-first
century gets underway, the
imbalance of wealth and
democracy in the United States is unsustainable
Either democracy must
be renewed, with politics brought back to life, or wealth is
likely to cement a new and less democratic regime - plutocracy
by some other name. [17]
In 2010, only three years later, that indicator of disparity had
risen up the pyramid from 225 billionaires to 43; and today the
figure has shrunk still further to eight. [18]
Left to right: Larry Ellison, Jeff Bezos, Mark Zuckerberg and Bill
Gates.
Photo credit: Oracle PR /
Flickr (CC BY 2.0), National Museum
of American History Smithsonian Institution /
Flickr CC BY-NC 2.0),
JD Lasica /
Flickr
(CC BY-NC 2.0) and US Department of the Treasury
As The New York Times reported in October 2015, just 158
families supplied half of the early money that had already poured
into the 2016 campaign, and 138 of these families supported
Republican candidates.
Sixty-four of these 138
families made their fortunes in finance, mostly in hedge funds,
private equity or venture capital.
A further seventeen
families were wealthy from energy, mostly oil and gas.
What both these two
groups were seeking was lower taxes and also deregulation:
repeal of the
Dodd-Frank Act reforming Wall Street, and (according to the
Times) a lifting of the 40-year-old ban on export of US oil.
[19]
Many were also,
"tied to networks of ideological donors who, on the
left and the right alike, have sought to fundamentally reshape their
own political parties" - on the one hand the twice-yearly anti-tax
seminars hosted by the Kochs, and on the other "the Democracy
Alliance, a network of liberal donors who have pushed Democrats to
move aggressively on climate change legislation and progressive
taxation." [20]
Once again, a division in the American public was being fomented and
funded by an old division within Big Money - roughly speaking,
between those
Trilateral Commission progressives, many flourishing
from the new technologies of the global Internet, who wish the state
to do more than at present about problems like wealth disparity,
racial injustice and global warming, and those Heritage Foundation
conservatives, many from finance and oil, who want it to do even
less.
We see this ideological split even among the top eight US super
billionaires in 2016, four of whom,
-
Bill Gates
-
Jeff Bezos
-
Mark Zuckerberg
-
Larry Ellison,
...have made their fortunes from
the
Internet and want the present US to progress more or less along its
recent course.
Warren Buffett (once number one, now number three)
endorsed Hillary Clinton early on,
"while calling for increased
taxes on the country's highest wage earners." [21]
Deeply
dissatisfied with the status quo were numbers seven and eight, the
Koch brothers, who,
"have fortunes largely drawn from fossil fuels,"
and have "poured money into fighting solar." [22]
Warren Buffett.
Photo credit: Fortune Live Media /
Flickr (CC
BY-NC-ND 2.0)
The Kochs assembled a donor network of fellow mavericks, many of
whom were distinguished by private ownership of their businesses,
and many (Jane Mayer pointed out),
"had serious past or ongoing legal
problems." [23]
In early 2015 their organization revealed that it
would spend $889 million leading up to the 2016 presidential
contest.
As USA Today reported, this unprecedented sum,
"unrivaled
for an outside organization, represents more than double the nearly
$400 million the Republican National Committee (RNC) raised and
spent during the 2012 presidential election cycle." [24]
This huge
organized flow of outside funds has contributed greatly to the
weakening of party discipline in Congress, especially among
Republicans.
Throughout the campaign, the Kochs and Trump (whose chief backer was
another maverick billionaire, Robert Mercer) were apparently at
arm's length from each other.
Vanity Fair suggested in September
that at that time the Kochs were,
"in direct opposition to the
Mercers," in a "civil war that threatens to tear the party apart" - even though, starting around 2011, the Mercers had been donating
"at
least $1 million a year to the Koch network." [25]
Whatever the tensions, it was clear after the election that Trump in
his transition team had,
"surrounded himself with people tied to the Kochs."
[26]
Soon the Trump nominee for Education Secretary was
Betsy DeVos, another major billionaire contributor to the Koch donor list.
(Betsy's brother Erik Prince, famous as the founder and owner of the
notorious
private army Blackwater, was
quietly advising the Trump transition team on matters related to
intelligence and defense.) [27]
And Trump's CIA Director is Mike Pompeo, formerly a Koch-sponsored
congressman,
"who was so closely entwined with the climate-change
denying Koch brothers that he was known as the 'congressman from
Koch'." [28]
(The new
administration has reportedly instructed the Environmental
Protection Agency to remove the climate change page from its
website.) [29]
David Koch and Charles Koch
Photo credit: Gage Skidmore / Flickr (CC
BY-SA 2.0)
and Fortune Brainstorm TECH / Flickr (CC BY-NC-ND 2.0).
Since his election, Trump has attacked the U.S. intelligence
agencies for leaking information, and reporters as being among,
"the
most dishonest human beings on Earth."
But while attacking the
Washington establishment, he is clearly reflecting the dissident big
money faction of the deep state, no longer as marginal as it was in
the era of the John Birch Society and later Goldwater. [30]
As the campaign and pre-inaugural preparations progressed, it became
clearer that Trump, no stranger to the world of big money, had
brought the old big money camp into his campaign, as well as the
new.
In January 2017 Trump nominated to be his SEC Chairman
Jay
Clayton, a Sullivan & Cromwell partner who in the past has
represented Goldman Sachs and other big banks in Wall street superdeals.
[31]
Clayton is the fourth former Goldman-related Trump nominee for the
new administration, all of them chosen under the eyes of Trump's
chief strategist, Stephen K. Bannon, himself a former Goldman banker
who moved on to become a Tea Party coordinator and executive
director at the alt-right Breitbart News.
(Bannon once promised to
build,
"an insurgent, center-right populist movement that is
virulently anti-establishment." [32]
It took only 10 days in the
White House to make it clear that Bannon had,
"rapidly amassed power
in the West Wing, eclipsing chief of staff Reince Priebus.") [33]
Undoubtedly Trump entered politics as a maverick real estate
investor and TV star, funding the early stages of his campaign
himself.
But as his campaign grew, he came to reach out more and
more to Wall Street financing, notably from Robert Mercer, the
co-CEO of hedge fund Renaissance Technologies. [34]
Then Trump named
as his campaign's Finance Chairman Steve Mnuchin, formerly of
Skull and Bones and Goldman Sachs.
[35]
As many predicted, Mnuchin later became Trump's nominee for Treasury
Secretary, which could make him the third former Goldman executive
to lead Treasury in the last four administrations, after Robert
Rubin and Hank Paulson.
In addition, Trump has
named Gary Cohn, former president of Goldman Sachs, as his
chief economic advisor and Director of the National Economic
Council. [36]
In short, Trump did not challenge but preserved the status of what
Jeffrey Sachs has called,
the Wall
Street-Washington complex, which has steered the financial
system toward control by a few politically powerful Wall Street
firms, notably Goldman Sachs, JPMorgan Chase, Citigroup, Morgan
Stanley, and a handful of other financial firms. [37]
Meanwhile, just as Trump expanded his financial base to all elements
of big money, so Wall Street, as it always does, ensured it had good
connections to both of the final candidates.
After Mnuchin joined
the Trump campaign, Lloyd Blankfein, chief executive officer
of Goldman Sachs announced in October 2016 his support of Hillary
Clinton. [38]
All of this complexity calls for further reflection on the 'nature' of
the deep state...
Goldman Sachs
Photo credit: takomabibelot / Flickr (CC BY 2.0)
Turkey and the International Deep State
To survey the more serious accounts of the "deep state in the United
States," it is useful to begin with their summary in Wikipedia under
this title:
as a "state within a
state, which [authors] suspect exerts influence and control over
public policy, regardless of which political party controls the
country's democratic institutions."
Citing five different
authors, (including myself) Wikipedia expands this definition to
include,
-
the military-industrial complex
-
the intelligence community
-
Wall Street
-
plutocrats
-
"big oil"
-
the mainstream
media
-
national security
officials
-
Silicon Valley
[39]
All five authors see two
essential components to the deep state.
-
On the one hand
is big money.
-
On the other are
the extra-constitutional Washington Beltway agencies like
CIA that Wall Street originally campaigned for and staffed,
along with the government-oriented industries that these
agencies and the Pentagon work with and outsource to. [40]
Besides myself, Philip Giraldi and
Mike Lofgren have also recognized
that,
"the term was actually coined in Turkey, and is said to be a
system composed of high-level elements within the intelligence
services, military, security, judiciary, and organized crime." [41]
A
more precise definition is that of Hugh Roberts:
The notion of the deep state
originated in Turkey, where it
connoted not merely the secretive apparatuses of the state such as
the police and intelligence services but above all the shady nexus
between them, certain politicians and organized crime. [42]
But I may be the only author showing the extent to which the Turkish
deep state, when first exposed in 1996, both overlapped with the
American deep state and revealed its dark underside.
The Turkish term "deep State" (deren devlet) was coined after the
so-called
Susurluk incident, a 1996 car crash whose victims included
the deputy chief of the Istanbul Police Department, a Member of
Parliament, and Abdullah Çatlı, an international heroin trafficker
and killer recruited by the Turkish police for "special missions"
and paid in heroin while he was officially being sought by the
Turkish authorities for murder. [43]
We see in the Susurluk incident three features of the Turkish deep
state, unmentioned by Lofgren, that not only resemble the American
deep state but are actually a significant component of it (and still
of major importance today).
The first is that it was partly international:
Abdullah Çatlı was
part of a death squad chiefly recruited from the ranks of the
Turkish OHD (Ozel Harp Dairesi - Special Warfare Department).
The OHD had originally been set up with US encouragement as the Turkish
branch of NATO's
Operation Gladio, a stay-behind force in the event
of a Warsaw Pact invasion.
Diverted and renamed Counter-Guerrilla to
suppress the Kurdish resistance movement, the OHD troops continued
to be trained in the US and to use US counterinsurgency manuals.
[44]
Abdullah Çatli,
Turkey
Photo credit: Adapted by WhoWhatWhy from Minestrone /
Wikimedia,
David Benbennick /
Wikimedia and Abdullah Çatli /
Twitter.
The second is that the international deep state connection revealed
at Susurluk was partly criminal:
the sanctioned para-state
activities with Çatlı were financed by billions of dollars in
profits from drug smuggling; just as the CIA in Laos and
elsewhere utilized a protected drug traffic to finance its
covert operations in Burma, Thailand, Laos, and Afghanistan.
[45]
Çatlı, a convicted
drug trafficker with a special Turkish passport, was himself part of
this post-Gladio international network:
Çatlı, according to Yalçın and Yurdakal, visited Miami in 1982 in
the company of a known Gladio agent (and Italian neo-Nazi) and was
considered to be "under the protection" of the CIA. [46]
(The Gladio agent was Stefano delle Chiaie, who had his own
connections to state-sponsored terrorist activities in Italy, to the
World Anti-Communist League or WACL, and more specifically to death
squads working for the
Operation Condor murder operation in Latin
America, sponsored by the right-wing dictatorships in the
region. [47]
The CIA had its own shadowy connections to all three, as
well as to Gladio.)
The third feature of the Susurluk event is that it was and remains a
largely inscrutable intelligence-related event, or what in this book
I call a "deep event," like similar events in the United States,
such as the John F. Kennedy assassination.
Nearly all western
accounts of the car crash overlook the claim that it was not an
accident but an intended assassination. [48]
Moreover the Turkish
deep state was later suspected in the Turkish coup attempt
of Ergenekon in 2007,[49] and its one-time parent, the US deep state,
in the failed military coup of July 2016. [50]
Both of these coup
attempts reveal elements of what I mean by deep events.
Not just in Turkey, but also in the United States, respected authors
have linked the deep state to what I call (pp. 98, 119) "structural
deep events," unsolved mysterious events that affect the political
system of the country. [51]
As I write, there have been a series of
charges that, if substantiated, would seem to link Trump not only to
an element of the American deep state, but also to an element of the
Russian deep state.
Part 2
February
07, 2017
Photo credit: Amanjeev /
Flickr (CC BY 2.0)
Trump and the International Deep State
The first charge against Trump was the CIA-backed claim that Russian
intelligence agencies hacked organizations affiliated both with
Hillary Clinton and with the Democratic Party, and that the hacks
were apparently,
"designed to benefit Donald Trump's presidential
aspirations in one fashion or another." [52]
(Politico also reported
that,
"Ukrainian government officials tried to help Hillary Clinton
and undermine Trump by publicly questioning his fitness for
office.") [53]
A second charge against Trump, closely related, was that,
as major banks in
America stopped lending him money following his many
bankruptcies, the Trump organization was forced to seek
financing from non-traditional institutions.
Several had direct
ties to Russian financial interests in ways that have raised
eyebrows. What's more, several of Trump's senior advisors have
business ties to Russia or its satellite politicians. [54]
In May 2016 the Washington Post and
Buzzfeed charged specifically
that,
Trump's top adviser, Paul Manafort, has spent much of his recent
career working for pro-Russian forces in Ukraine, and doing complex
deals for an oligarch with close ties to Putin...
Manafort
has,
according to court documents, managed tens of millions of dollars
for Oleg Deripaska, an oligarch denied entry to the U.S. reportedly
for ties to organized crime, but so close to Vladimir Putin that
top Russian officials fought (unsuccessfully) to get him a visa.
[55]
On the eve of the new Trump presidency
The New York Times reported
that,
American law enforcement and intelligence agencies are examining
intercepted communications and financial transactions as part of a
broad investigation into possible links between Russian officials
and associates of President-elect Donald J. Trump, including his
former campaign chairman Paul Manafort
and Roger Stone. [56]
Trump Campaign Chairman Paul Manafort
at the 2016 Republican
National Convention.
Photo credit: Disney | ABC Television Group /
Flickr (CC BY-ND 2.0)
In January 2017 Buzzfeed leaked the source of these charges:
a
private intelligence report transmitted by the CIA to Trump. [57]
This report, by former British intelligence
Christopher Steele, did
not as released mention Deripaska at all, but contained instead an
unexplained discussion of Deripaska's bankers, the
Alfa Group, along
with its founders Mikhail Fridman and Pyotr Aven.
Just before the election The New York Times reported that,
For much of the summer, the
FBI
scrutinized advisers close to
Donald J. Trump, looked for financial connections with Russian
financial figures
and even chased a lead - which they ultimately
came to doubt - about a possible secret channel of email
communication from the Trump Organization to a Russian bank
.
FBI officials spent weeks examining computer data showing an odd
stream of activity to a Trump Organization server and Alfa Bank
But the FBI
ultimately concluded that there could be an innocuous
explanation, like a marketing email or spam, for the computer
contacts. [58]
The next day the Jewish paper
Forward raised a question, not yet
answered, about Alfa Bank's principal owner, the philanthropist
oligarch Mikhail Fridman, listed as #73 on the Forbes list of the
world's billionaires in 2016 (once #20), and the second wealthiest
Russian:
Is a Russian Jewish
oligarch with Israeli citizenship and close ties to both
Vladimir Putin and Benjamin Netanyahu running a secret
cyber-communications channel between Donald Trump's presidential
campaign and Russian authorities? [59]
The various speculations about the Trump link to Alfa and Fridman,
whether innocuous or shady, justify a closer look at the charges
about Alfa's influence two decades ago, when Alfa's dubious clout in
Washington included protection from both senior Democrats like
Richard Burt of Kissinger McLarty Associates and also senior
Republicans like Dick Cheney. [60]
As The Guardian reported in 2002,
Alfa's 1990s clout in Washington was demonstrated when its oil
company, Tyumen,
was loaned $489m in
credits by the US Export-Import Bank after lobbying by
Halliburton
The [Clinton] White
House and State Department tried to veto the Russian deal. But
after intense lobbying by Halliburton the objections were
overruled on Capitol Hill [which then was Republican
controlled]
The State
Department's concerns were based on the fact that Tyumen was
controlled by a holding conglomerate, the Alfa Group, that had
been investigated in Russia for mafia connections. [61]
Veteran newsman Knut Royce (a major contributor to three Pulitzer
Prize-winning stories) reported the details:
Under the guidance of Richard Cheney, a
get-the-government-out-of-my-face conservative, Halliburton Company
over the past five years has emerged as a corporate welfare hog,
benefiting from at least $3.8 billion in federal contracts and
taxpayer-insured loans.
One of these loans was approved in April by the U.S. Export-Import
Bank. It guaranteed $489 million in credits to a Russian oil company
[Tyumen, owned by Alfa] whose roots are imbedded in a legacy of KGB
and Communist Party corruption, as well as drug trafficking and
organized crime funds, according to Russian and U.S. sources and
documents.
[Two reports, one by "a former U.S. intelligence officer," and one
by the Russian FSB] claim that Alfa Bank, one of Russia's largest
and most profitable, as well as Alfa Eko, a trading company, had
been deeply involved in the early 1990s in laundering of Russian and
Colombian drug money and in trafficking drugs from the Far East to
Europe
.
The FSB report, too, claimed that the Alfa Group's top executives,
oligarchs Mikhail Fridman and Pyotr Aven,
"allegedly participated in
the transit of drugs from Southeast Asia through Russia and into
Europe." [62]
This impression is reinforced by the statements and actions of
Michael Flynn, Trump's new national security advisor.
Flynn has made
several appearances on Russia's RT network, where he has often
argued,
"that the US and Russia should be working more closely
together on issues like fighting ISIL and ending Syria's civil war."
In June 2016 Flynn attended an RT gala dinner in Moscow, seated just
two seats away from Putin. [63]
And in December Flynn reportedly met
with far-right Austrian political party leader Heinz-Christian Strache,
whose Freedom Party had recently signed a cooperation deal
with Putin's United Russia Party. [64]
President Vladimir Putin,
Igor Sechin, Chairman of the Board of
Rosneft (left)
and Rex Tillerson, Chairman of ExxonMobil
signed an
agreement on joint development
of petroleum reserves in Western
Siberia,
June 2012.
Photo credit: President of Russia /
Wikimedia
(CC BY 3.0)
An even closer friend of Putin in Trump's team, ironically, is
former Exxon CEO Rex Tillerson, his Secretary of State. [65]
In fact Tillerson, through Exxon's development of Russian oilfields,
"has
deep ties to Russia, dating back to the Boris Yeltsin
administration." [66]
As Julian Borger told the
Guardian,
Putin
bestowed the
Order of Friendship on Tillerson in 2013.
The
Wall Street Journal reported:
"Friends and associates said few US
citizens are closer to Mr. Putin than Mr. Tillerson." [67]
The
64-year-old Texas oilman spent much of his career working on Russian
deals, including a 2011 agreement giving Exxon Mobil access to the
huge resources under the Russian Arctic in return for giving the
giant state-owned Russian oil company, OAO Rosneft, the opportunity
to invest in Exxon Mobil's operations overseas...
The 2011 Exxon-Rosneft
agreement was frozen when sanctions were imposed on Russia in 2014,
following the annexation of Crimea and covert military intervention
in eastern Ukraine.
Exxon Mobil estimated the sanctions cost it $1bn
and Tillerson has argued strenuously for the measures to be lifted.
[68]
The $500 billion Exxon-Rosneft exploration deal, allegedly
"the
biggest oil deal ever," was so huge that the Wall Street Journal
reported in 2014 that its temporary cancellation "put Exxon at
risk." [69]
Trump's criticisms of Obama's sanctions on Russia were one powerful
reason for Exxon to prefer Trump in the 2016 election. [70]
But Trump
was also attractive for his promises of deregulation:
President Trump will
'absolutely' be a boom to Exxon and the rest of
the oil industry, Fadel Gheit, an analyst at Oppenheimer & Co., said
in a telephone interview.
"The industry hasn't asked for a hand up
from Washington, but instead has said, 'Get off our backs.' Less
regulation means less burden" on oil explorers. [71]
And Trump clearly will continue Exxon's longtime history of
opposition to measures to control
global warming. [72]
(When still
CEO, Tillerson ended Exxon's two decades of strenuous climate change
denial, and came out for a carbon tax.
But skeptics, including The
New York Times, suspected this was merely a skillful means of
defeating the more viable "cap-and-trade" carbon proposals that were
then being debated in Congress, and ultimately defeated.) [73]
My book
The American Deep State documents the leading role played by
Exxon behind the elections of the oil-friendly presidents Eisenhower
in 1952, and Reagan in 1980 (below, pp. 18-20, 27-28).
It is not
surprising that Exxon in 2016 should have helped propel yet another
former television performer into the White House.
The "Party of Davos" and the
"New-New International Order"
In short, the Trump team connections to the Russian state and deep
state - both overt (through Exxon) and covert (through Manafort and
Alfa) would appear to link Trump to a shady larger network or
networks connected also to the same Washington swamp he promised to
drain.
Such networks led me in the Preface to the French edition of
this book to talk of,
a supranational milieu of the super-rich, just eighty of whom are
now said to own nearly as much as the 3.5 billion people who occupy
the bottom half of the world's income scale. [74]
Thanks to the
enormous increase in global wealth in recent years, the "global
power elite" who meet annually at Davos now have far more influence
on how the world will be governed than those who meet annually at
the United Nations General Assembly.
Those at Davos do not need to give instructions to the American deep
state, which is already structured around responsiveness to the
requirements of extreme wealth in Wall Street and elsewhere.
And
some of them are members of what have been called,
"shadow elites,
those whose influence stems from illicit or unconventional
means." [75]
"Diplomacy in an Era of Disruption"
Conversation with Secretary
John Kerry and Tom Friedman
on the opening day of the World Economic
Forum in Davos, 2017.
Photo credit: US Embassy Bern, Switzerland /
Flickr (CC BY-SA 2.0)
Naomi Klein, ascribing Trump's victory to the neoliberalism of the
Democrats and of Davos, has written of,
the rise of the Davos class, a hyper-connected network of banking
and tech billionaires, elected leaders who are awfully cozy with
those interests (neoliberal policies), and Hollywood celebrities
who make the whole thing seem unbearably glamorous. [76]
And before becoming the Chief Strategist and Senior Counselor in the
Trump White House, Steve Bannon, while executive chair of
Breitbart
News, had said in a speech at the Vatican that working men and women
in the world were,
"tired of being dictated to by what we call
the
party of Davos." [77]
Trump has just chosen an ambassador to the European Union, Ted
Malloch, a professor,
"well-known for his pro-Brexit and anti-EU
views," positions consistent "with Trump's longstanding anti-EU and
anti-NATO biases."
Reporting this, Salon notes also that,
"some
American foreign policy watchers are concerned that he is also
motivated by his close ties to Russian dictator Vladimir Putin."
[78]
The Trump attack on the "party of Davos," the status quo of the
world super-class, is likely to continue. [79]
On January 26, Trump
announced,
"he would strike numerous bilateral trade deals, as
opposed to multilateral accords like
the Trans-Pacific
Partnership." [80]
This approach, which by itself could please China as well as Russia,
seems to reflect a coherent effort to replace the old consensus of
the "party of Davos", with what the right-wing Drudge Report
approvingly called the,
"new, new world order".
[81]
The "New, New World Order" may be said to represent the mavericks of
the international deep state, eager to dispense with the regulations
of the old insiders.
But they are still part of the nexus of
uncontrolled big money, even if drawn more from the under-reported
shady underside of that super-class.
As I write after just one week of Trump in office,
it already seems
clear that we can expect a "Trump revolution," one that will almost
certainly attempt to reflect and repeat the major features
(deregulation, anti-abortion measures, a defense spending
buildup, tax cuts for the rich, and deficit financing) of the
Reagan revolution before it.
And it should not be
too surprising if the Trump revolution, just like the Reagan
revolution before it, turns out to have been not just financed,
but partly plotted, at the levels of the American and the
international deep state. [82]
Personal Postscript
As I write this new Introduction in January 2017, the involuntary
response to Trump's election from many of my friends in both
political parties has been anger, hatred, or despair.
Many, like
Michael Kinsley in the Washington Post, have charged that,
"Donald
Trump is a fascist." [83]
From such alienation, millions of people
protested worldwide, the day after Trump's inauguration, in what was
perhaps the world's first global political action.
This was a
welcome step towards shaping a global active public opinion.
President Donald Trump,
General Joe Dunford and Vice President Mike
Pence
observe the 58th Presidential Inauguration Parade
at the White
House reviewing stand in Washington D.C., Jan. 20, 2017.
Photo
credit: Chairman of the Joint Chiefs of Staff /
Flickr (CC BY 2.0)
It is true that Trump, like Hitler, campaigned against big bankers
while quietly taking money from them.
But the infant Weimar Republic
Hitler overthrew, jerry-built amid the ruins of post-war Germany,
cannot be compared to the constitution and civil polity of America,
among the oldest and hardiest in the world.
I say below (p.99) that America is also exceptional,
-
for its percentage of citizens who are incarcerated
-
for its
disparity in wealth and income between rich and poor (a ratio
exceeded among large nations only by China)
-
for its
indiscriminate use of lethal power abroad
From the beginning, America has been embroiled in major divisions,
arising chiefly from its amazing diversity. But it is also the
leader among world powers in its ability to process and transcend,
however imperfectly, these divisions.
As so many times before in US history, we are entering another
period of divisions and protests.
But a successful protest of the
nonviolent kind I hope for in this book (see below, pp. 164, 181-90)
must be one inspired by deeply critical love of this flawed country,
not by hatred.
References
[1] Michael C.
Bender and Damian Paletta, "Donald Trump Plans to Undo
Dodd-Frank Law, Fiduciary Rule," Wall Street Journal,
February 3, 2017,
https://www.wsj.com/articles/trump-moves-to-undo-dodd-frank-law-1486101602.
Cf.
[2] R.G. Ratcliffe, "Obama's final campaign speech of 2008,"
Houston Chronicle, October 27, 2008,
http://blog.chron.com/texaspolitics/2008/10/obamas-final-campaign-speech-of-2008/.
[3] Eugene Kiely, "Obama, "White House 'Full of Wall Street
Executives'?" Factcheck.org, March 1, 2012.
[4] Eric Lichtblau and Steven Lee Myers, "Investigating Donald
Trump, FBI. Sees No Clear Link to Russia," New York Times,
October 31, 2016,
https://www.nytimes.com/2016/11/01/us/politics/fbi-russia-election-donald-trump.html
(FBI);
"Cheney Firm
Won $3.8bn Contracts from Government,"
Observer, July 21, 2002,
http://www.guardian.co.uk/world/2002/jul/21/globalisation.georgebush.
See below.
[5] Anand Giridharadas, "Examining Who Runs the United States,"
New York Times, September 15, 2015,
https://www.nytimes.com/2015/09/15/us/examining-who-runs-the-united-states.html.
I believe the first to apply the Turkish term "deep state" (derin
deret) to U.S. politics was the Swedish writer Ola Tunander
(Peter Dale Scott, The Road to 9/11 [Berkeley:
University of California Press, 2007], x, 244, 270, 384).
[6] Michael Covel, "The Deep State V. Trump," Daily Reckoning,
August 25, 2016,
https://dailyreckoning.com/deep-state-v-trump/:
"Donald Trump has the establishment scared out of their
establishment minds."
[7] Ryan Lizza, "Roger Stone Versus the 'Deep State'", New
Yorker, January 20, 2017,
http://www.newyorker.com/news/news-desk/roger-stone-versus-the-deep-state.
Stone has been described as a "political provocateur" who "helped choreograph the
riot which shut down the Bush v. Gore
recount in Miami-Dade County" (Jeffrey Toobin, "Bad Old Days,"
New Yorker, May 2. 2016,
http://www.newyorker.com/magazine/2016/05/02/the-political-provocateur-roger-stone-talks-trump.
During the campaign, Stone and fellow provocateur Milo
Yiannopoulos of Breitbart together promoted the divisive notion
"how the general election will almost certainly be hijacked by
acts of voter fraud" - by Democrats (Ken Meyer, :Roger Stone
Says There Will Be a 'Bloodbath' if Election is Stolen From
Trump," Medaite.com, August 2, 2016,
http://www.mediaite.com/online/roger-stone-says-there-will-be-a-bloodbath-if-election-is-stolen-from-trump/.
Their politics of division is shared by Steve Bannon, who "is so
dominated by a desire to wage war and vanquish his enemy that he
cannot think clearly about damage wrought by his destructive,
polarizing approach" (Conor Friedersdorf, "The Radical
Anti-Conservatism of Stephen Bannon," Atlantic, August
25, 2016,
http://www.theatlantic.com/politics/archive/2016/08/the-radical-anti-conservatism-of-stephen-bannon/496796/).
[8] Covel, "The Deep State V. Trump." Cf. John W. Whitehead, "The Deep State: The Unelected Shadow Government Is Here to
Stay," Rutherford Institute, November 10, 2015,
https://www.rutherford.org/publications_resources/john_whiteheads_commentary/the_deep_state...:
"The Deep State
is comprised of unelected government
bureaucrats, corporations, contractors, paper-pushers, and
button-pushers who are actually calling the shots behind the
scenes right now."
[9] "Chris Hedges on How the 'Deep State' Will Influence the
Trump Presidency," Truthdig, Jan 17, 2017,
http://www.truthdig.com/avbooth/item/chris_hedges_the_deep_state_will_influence_the_trump_presidency_20170117.
In this camp are Glenn Greenwald, who equates the "deep state"
with "the intelligence community," and Eric Margolis, who
equates it with "the massed national security apparatus" (Glenn
Greenwald, "The Deep State Goes to War with President-Elect,
Using Unverified Claims, as Democrats Cheer," The Intercept,
January 11, 2017,
https://theintercept.com/2017/01/11/the-deep-state-goes-to-war-with-president-elect-using-unverified-claims-as-dems-cheer/;
Eric Margolis, "Trump Versus the Deep State," The Unz Review,
January 13, 2017,
http://www.unz.com/emargolis/trump-versus-the-deep-state/.
[10] Mike Lofgren, The Deep State: The Fall of the
Constitution and the Rise of a Shadow Government (New York:
Viking, 2016); Philip Giraldi, "Deep State America," The
American Conservative, July 30, 2015,
http://www.theamericanconservative.com/articles/deep-state-america/.
[11] Peter Dale Scott, The American Deep State (Lanham,
MD: Rowman & Littlefield, 2015), 30. I later wrote in
Dallas '63: "In The American Deep State I
devoted only a few lines to the oppositional faction of
right-wing Texas oilmen and the John Birch Society, opposed to
the relative internationalism of Wall Street. In this [book] we
shall see that under Kennedy their opposition was so deeply
embedded that America was, for a while, ruled by a dyadic deep
state" (Peter Dale Scott, Dallas '63: The First Deep State
Revolt Against the White House [New York: Open Road Media,
2015], 191).
[12] "Divided States of America," Part 1, Frontline, PBS,
January 17, 2017. Cf. Jane Mayer, Dark Money: The
Hidden History of the Billionaires Behind the Rise of the
Radical Right (New York: Doubleday, 2015), 165-68.
[13] Rick Ames and Yasha Levine, "Exposing The Rightwing PR
Machine: Is CNBC's Rick Santelli Sucking Koch, The Exiled,
February 27, 2009,
http://exiledonline.com/exposing-the-familiar-rightwing-pr-machine-is-cnbcs-rick-santelli-sucking-koch/;
Chris Douglas, "The Tax That Started the Tea Party," FrumForum.
September 3, 2010,
http://www.frumforum.com/the-tax-that-started-the-tea-party/.
Cf. Peter Dale Scott, "POEM: To the Tea-Party Patriots: A
Berkeley Professor says Hello!," GlobalResearch, November 2,
2010,
http://www.globalresearch.ca/poem-to-the-tea-party-patriots-a-berkeley-professor-says-hello/21727;
reprinted in Peter Dale Scott, Tilting Point (San Luis
Obispo, CA : Word Palace Press, 2012), 42.
[14] Jane Mayer, "Covert Operations: The Billionaire Brothers
Who Are Waging a War Against Obama," New Yorker, August
30, 2010,
http://www.newyorker.com/magazine/2010/08/30/covert-operations;
Mayer, Dark Money, 167-68, 193. In 2014 the Koch
brothers were tied for sixth place among the world's wealthiest,
with $40.7 billion each. Combined, their net worth is $81.4
billion, which was higher than the highest-ranking individual on
the list - Microsoft founder Bill Gates, at $77.8 billion (Louis
Jacobson, "Harry Reid says Koch brothers are richest family in
the world," Politifact, April 2, 2014,
http://www.politifact.com/truth-o-meter/statements/2014/apr/02/harry-reid/harry-reid-says-koch-brothers-are-richest-family-w/).
Chris Douglas observes, "Until the Bush tax cuts, the estate tax
stood at 55%. As a result of the tax cuts initiated by the Bush
administration, by 2010, it was zero. Unless Congress acts, it
will return full-force to 55% in 2011. To understand the impact
on the Koch family, consider that some reports place the wealth
of the Koch brothers at $36 billion dollars [in 2010; four years
later Forbes estimated it at $81 billion], their
company second at times only to Cargill as the largest privately
held company in America. To the Koch family, a 55% estate tax
means they must contemplate a corporate re-organization, the
result of which would conceptually be to go public and sell off
55% of their shares in order to pay the tax or, more likely,
that they would donate the majority of shares to a charitable
foundation. Either way, the estate tax at 55% would entail a
transformation of Koch Industries and a diversification of
ownership, with ramifications for the family's long term
control" (Chris Douglas, "The Tax That Started the Tea Party").
[15] Mayer, Dark Money, 167. Cf, Nella Van Dyke and
David S. Meyer, eds., Understanding the Tea Party Movement
(Burlington, VT: Ashgate Pub. Company, 2014), 100.
[16] Peter Dale Scott, "Bringing It All Together: The New
Releases and How They Help Us Converge on the Heart of the
Case," The Fourth Decade, Vol. 4, #1, November, 1996;
republished at
http://www.assassinationweb.com/scotte.htm. Of the eleven
businessmen at the 1958 founding meeting of the John Birch
Society, many, including the founder Robert Welch, were former
members of the National Association of Manufacturers (Terry
Lautz, John Birch: A Life [New York: Oxford University
Press, 2016]. 225). One was William J. Grede, who served as
president of the National Association of Manufacturers in 1952.
Still another was Fred Koch, father of Charles and David Koch
(Jeff Nesbit, Poison Tea: How Big Oil and Big Tobacco
Invented the Tea Party and Captured the GOP [New York:
Thomas Dunne Books, 2016], 30; Van Dyke and Meyer,
Understanding the Tea Party Movement, 100). Charles and
David Koch also joined the John Birch Society.
[17] Kevin Phillips, Wealth and Democracy: A Political
History of the American Rich (New York: Broadway Books,
2002). 422; quoted in Peter Dale Scott, The Road to 9/11
[Berkeley: University of California Press, 2007], 3, cf. 254.
[18] "World's Eight Richest as Wealthy as Half Humanity, Oxfam
Tells Davos." Reuters, January 16, 2016,
http://www.reuters.com/article/us-davos-meeting-inequality-idUSKBN150009.
[19] "From Fracking to Finance, a Torrent of Campaign Cash,"
New York Times, October 10, 2015,
https://www.nytimes.com/2015/10/11/us/politics/wealthy-families-presidential-candidates.html#donors-list.
Much of the petroleum wealth was probably also aimed at
preventing climate change regulations.
[20] "From Fracking to Finance, a Torrent of Campaign Cash,"
New York Times, October 10, 2015.
[21] Amy Chosick, "Warren Buffett Endorses Hillary Clinton and
Calls for Higher Taxes on Wealthy," New York Times, December 16,
2015,
https://www.nytimes.com/politics/first-draft/2015/12/16/warren-buffett-endorses-hillary-clinton-and-calls-for-higher-taxes-on-wealthy/
[22] Sarah Jaffe, Necessary Trouble: Americans in Revolt
(New York: Nation Books, 2016), 265. None of the eight endorsed
Trump, who pointedly distanced himself from the Kochs during the
campaign.
[23] Mayer, Dark Money, 17.
[24] Fredreka Schouten, "Koch brothers set $889 million budget
for 2016, USA Today, January 27, 2015,
http://www.usatoday.com/story/news/politics/2015/01/26/koch-brothers-network-announces-889-million-budget-for-next-two-years/22363809/.
[25] Abigail Tracy, "The Brewing Billionaire Feud at the Heart
of the G.O.P.," Vanity Fair, September 7, 2016,
http://www.vanityfair.com/news/2016/09/robert-rebekah-mercer-charles-david-koch-republican-party.
[26] Kenneth P. Vogel and Eliana Johnson, "Trump's Koch
Administration," Politico, November 28, 2016,
http://www.politico.com/story/2016/11/trump-koch-brothers-231863
[27] Jeremy Scahill, "Notorious Mercenary Erik Prince Is
Advising Trump from the Shadows," The Intercept, January 17
2017,
https://theintercept.com/2017/01/17/notorious-mercenary-erik-prince-is-advising-trump-from-the-shadows/:
"In July [2016], Prince told Trump's senior adviser and white
supremacist Steve Bannon, at the time head of Breitbart News,
that the Trump administration should recreate a version of the
Phoenix Program, the CIA assassination ring that operated during
the Vietnam War, to fight ISIS."
[28] Mayer, Dark Money, 15, 276.
[29] Valerie Volcovici, "Trunp Administration Tells EPA To Cut
Climate Page from Website: Sources," Reuyers, January 25, 2017,
http://mobile.reuters.com/article/idUSKBN15906G?feedType=RSS&feedName=politicsNews.
[30] On page 5 of this book, I refer to a formerly "minority
element in our political economy [that now] finances and
dominates both parties, and indeed is now also financing threats
to both parties from the right, as well as dominating our
international policy. As a result, liberal Republicans are as
scarce in the Republican Party today as Goldwater Republicans
were scarce in that party back in 1960." Today I would no longer
define this element as "the military-industrial complex," but
the trend has become even more clear.
[31] Matt Taibbi, 'Trump Nominee Jay Clayton Will Be the Most
Conflicted SEC Chair Ever,' Rolling Stone, January 5,
2017,
http://www.rollingstone.com/politics/features/trump-pick-jay-clayton-to-be-most-conflicted-sec-chair-ever-w459289.
Clayton's wife Gretchen is a wealth management advisor at
Goldman Sachs.
[32] Conor Friedersdorf, "The Radical Anti-Conservatism of
Stephen Bannon," Atlantic, August 25, 2016.
[33] Josh Dawsey, Eliana Johnson and Annie Karni, "The man
behind Trump? Still Steve Bannon," Politico, January 29, 2017,
http://www.politico.com/story/2017/01/donald-trump-steve-bannon-234347.
[34] "How One Family's Deep Pockets Helped Reshape Donald
Trump's Campaign By Nicholas Confessore Aug. 18, 2016
http://www.nytimes.com/2016/08/19/us/politics/robert-mercer-donald-trump-donor.html
[35] Bloomberg BusinessWeek, August 31, 2016,
https://www.bloomberg.com/politics/articles/2016-08-31/steven-mnuchin-businessweek
When Mnuchin was Financial Chairman of the Trump campaign,
his counterpart at the RNC was Lew Eisenberg, his father's old
partner at Goldman Sachs.
[36] Pam Martens and Russ Martens, "Here's How Goldman Sachs
Became the Overlord of the Trump Administration," Wall Street on
Parade, January 9, 2017,
http://wallstreetonparade.com/2017/01/heres-how-goldman-sachs-became-the-overlord-of-the-trump-administration/
[37] Jeffrey D. Sachs, The Price of Civilization:
Reawakening American Virtue and Prosperity (New York:
Random House, 2011), 117.
[38] Zeke Faux, "Goldman CEO Blankfein 'Supportive' of Clinton
for Pragmatism,"
Bloomberg,
October 22, 2016,
https://www.bloomberg.com/politics/articles/2016-10-22/goldman-ceo-blankfein-supportive-of-clinton-for-pragmatism.
[39] "Deep state in the United States," Wikipedia,
https://en.wikipedia.org/wiki/Deep_state_in_the_United_States.
The five authors are Philip Giraldi, Bill Moyers, David Talbot,
Mike Lofgren, and myself.
[40] Scott, The American Deep State, 14-15, 30-35,
etc.) The Pentagon, unmentioned by Wikipedia, is hard to
classify. Although the Department of Defense is part of the
official state and headed by a cabinet member, it contains
within it the NSA, which simultaneously reports to the Director
of National Intelligence. Other Pentagon agencies, such as DIA
and JSOC, also deserve to be classified with the deep state.
[41] Mike Lofgren, The Deep State: The Fall of the
Constitution and the Rise of a Shadow Government (New York:
Viking, 2016), 5. I see no further references in Lofgren's book
to organized crime; his notion of the deep state focuses
primarily on the Beltway agencies.
[42] Hugh Roberts, The Hijackers." London Review of Books, July
16, 2015,
http://www.lrb.co.uk/v37/n14/hugh-roberts/the-hijackers, a
review of Jean-Pierre Filiu, From Deep State to Islamic
State: The Arab Counter-revolution and Its Jihadi Legacy (Oxford
: Oxford University Press, [2015]).
[43] Jean-Louis Briquet; Gilles Favarel-Garrigues; Roger
Leverdier, eds. Organized Crime and States: The Hidden Face
of Politics (New York: Palgrave Macmillan, 2010). 43-44;
Peter Dale Scott, American War Machine: Deep Politics, the
CIA Global Drug Connection, and the Road to Afghanistan
(Lanham, MD: Rowman & Littlefield Publishers, 2010), 19-20.
Çatlı "is reckoned to have been one of the main perpetrators of
underground operations carried out by the Turkish branch of the
Gladio organisation and had played a key role in the bloody
events of the period 1976-80 which paved the way for the
military coup d'état of September 1980" ("Turkey's pivotal role
in the international drug trade, Le Monde diplomatique,
July 1998).
[44] Desmond Fernandes and Iskender Ozden, "United States and
NATO inspired 'psychological warfare operations' against the
'Kurdish communist threat' in Turkey". Variant. 12,
https://web.archive.org/web/20060614080445/http://www.variant.randomstate.org/12texts/Fernandes.html;
Daniele Ganser, NATO's Secret Armies: Operation Gladio and
Terrorism in Western Europe (New York: Frank Cass, 2005),
241.
[45] Hakan Aslaneli and Zafer F. Yoruk, 'Traffic Monster'
reveals state-mafia relations". Hürriyet, November 7,
1996; Scott, American War Machine, 4-6, etc.
[46] Ryan Gingeras, Heroin, Organized Crime, and the Making
of Modern Turkey (Oxford: Oxford University Press, 2014),
228; citing Soner Yalçın and Doğan Yurdakul, Reis:
Gladio'num Türk Teriçisi (Istanbul: Doğan Kitapeilik,
2007), 152-56.
[47] Scott, American War Machine, 20; cf.p.30: In Italy
"Stefano delle Chiaie was eventually accused of involvement in
the Piazza Fontana and Bologna bombings as well as the Borghese
coup." The Condor Operation (about which I will say more) was
responsible for the 1976 murder in Washington of former Chilean
diplomat Orlando Letelier.
[48] HRFT Human Rights Foundation of Turkey Human Rights Report
TİHV, en.tihv.org.tr/wp-content/uploads/2015/
/Ra1998HumanRigthsReport.pdf,
39. In addition, no one has yet fully explained why one of the
fake passports found in Çatlı's possession was in the name
"Mehmet Özbay", an alias used fifteen years earlier by Mehmet
Ali Ağca, the Turk who in 1081 attempted to kill Pope John Paul
II (Peter Dale Scott, American War Machine: Deep Politics,
the CIA Global Drug Connection, and the Road to Afghanistan
[Lanham, MD: Rowman & Littlefield Publishers, 2010], 19; Ryan
Gingeras, Heroin, Organized Crime, and the Making of Modern
Turkey [Oxford: Oxford University Press, 2014], 228.
[49] Dexter Filkins. "The Deep State," The New Yorker,
March 12, 2012,
http://www.newyorker.com/magazine/2012/03/12/the-deep-state:
"Prosecutors maintain that Ergenekon is the deep state
itselfnot merely a cabal of reactionary officers within the
military but a shadow government that aims at making Turkish
democracy permanently unstable."
[50] Tim Arango and Ceylan Yeginsu, "Turks Can Agree on One
Thing: U.S. Was Behind Failed Coup," New York Times,
August 2, 2016,
https://www.nytimes.com/2016/08/03/world/europe/turkey-coup-erdogan-fethullah-gulen-united-states.html.
[51] On page 47 I speak of "a deep event, by which I mean an
event predictably suppressed in the media and still not fully
understandable."
[52] "Donald
Trump's Many, Many, Many, Many Ties to Russia." Time,
August 16, 2016,
http://time.com/4433880/donald-trump-ties-to-russia/
[53] Kenneth P. Vogel and David Stern, "Ukrainian efforts to
sabotage Trump backfire
. Kiev officials are scrambling to make
amends with the president-elect after quietly working to boost
Clinton," Politico, January 11, 2017,
http://www.politico.com/story/2017/01/ukraine-sabotage-trump-backfire-233446:
"A Ukrainian-American operative who was consulting for the
Democratic National Committee met with top officials in the
Ukrainian Embassy in Washington in an effort to expose ties
between Trump, top campaign aide Paul Manafort and Russia,
according to people with direct knowledge of the situation. The
Ukrainian efforts had an impact in the race, helping to force
Manafort's resignation and advancing the narrative that Trump's
campaign was deeply connected to Ukraine's foe to the east,
Russia."
[54] Ibid.
[55] "Trump Adviser's Ties Raise Security Questions,"
BuzzfeedNews, May 6, 2016,
https://www.buzzfeed.com/bensmith/manafort-russia?utm_term=.htL7NyLEDb#.elgKkM63xN,
linking to "Inside Trump adviser Manafort's world of politics
and global financial dealmaking" (Washington Post,
April 26, 2016,
https://www.washingtonpost.com/politics/in-business-as-in-politics-trump-adviser-no-stranger-to-controversial-figures/2016/04/26/970db232-08c7-11e6-b283-e79d81c63c1b_story.html).
These charges should not be confused with the more sensational
Buzzfeed leak in January 2017 of a private intelligence report
shown by the CIA to Trump (https://www.buzzfeed.com/kenbensinger/these-reports-allege-trump-has-deep-ties-to-russia?utm_term=.ppJ6nP7KJA#.hrE3zm5pPx).
This report, by former British intelligence Christopher Steele,
did not as released mention Deripaska, but contained instead an
unexplained discussion of the Alfa Group, whose connections to
Halliburton when run by Dick Cheney are discussed by me in
American War Machine, 187.
[56] "Intercepted Russian Communications Part of Inquiry Into
Trump Associates," New York Times, January 19, 2017,
https://www.nytimes.com/2017/01/19/us/politics/trump-russia-associates-investigation.html.
For a critique of Manafort's and Stone's responses to the
charges, see Joseph Cannon at
http://cannonfire.blogspot.com/2017/01/busted-on-inauguration-day.html.
In addition to the charge that Russian officials helped Trump,
Politico has also claimed that "Ukrainian government officials
tried to help Hillary Clinton" (Ukrainian Efforts to Sabotage
Trump Backfire," Politico, January 11,2017,
http://www.politico.com/story/2017/01/ukraine-sabotage-trump-backfire-233446.
[57]
https://www.buzzfeed.com/kenbensinger/these-reports-allege-trump-has-deep-ties-to-russia?utm_term=.ppJ6nP7KJA#.hrE3zm5pPx.
[58] Eric Lichtblau and Steven Lee Myers, "Investigating Donald
Trump, FBI. Sees No Clear Link to Russia," New York Times,
October 31, 2016,
https://www.nytimes.com/2016/11/01/us/politics/fbi-russia-election-donald-trump.html.c
f. Geoffrey Smith, "Meet the Russian Bank with Ties to Donald
Trump," Fortune, November 2, 2016,
http://fortune.com/2016/11/02/donald-trump-alfa-bank/.
[59] Larry Cohler-Esses, "Is Jewish Oligarch the Cyber Link
Between Donald Trump and Russia?" Forward, November 1,
2016,
http://forward.com/news/world/353170/is-a-russian-israeli-oligarch-running-a-covert-cyber-channel-between-trump/.
[60] Scott, American War Machine, 187: "Diligence's
chief transnational connection in Russia is Alfa Bank.
The chairman of Diligence from 2001 to 2007 was former U.S.
ambassador and arms negotiator Richard Burt, of Barbour,
Griffith and Rogers and McLarty Kissinger Associates. Burt, a
neoconservative who once called the SALT agreement "a favor to
the Russians," is also on the Alfa Bank's Senior Advisory Board
in Moscow.
[61] "Cheney Firm Won $3.8bn Contracts from Government,"
Observer, July 21, 2002,
http://www.guardian.co.uk/world/2002/jul/21/globalisation.georgebush;
quoted in Scott, American War Machine, 187. In 2003 the
Alfa Group of investors formed a 50-50 joint venture with BP,
called TNK-BP. A dispute in 2011 between Mikhail Fridman and BP
led Rosneft, blocked in its plans to develop its Arctic
oilfields with BP, to agree to a deal on the same Arctic acreage
with ExxonMobil instead (Guy Chazan and John Thornhill, "Mikhail
Fridman: The Alpha oligarch," Financial Times, March 5,
2015,
https://www.ft.com/content/b47de3d4-c325-11e4-ac3d-00144feab7de).
See below.
[62] Knut Royce and Nathaniel Heller, "Cheney led Halliburton to
feast at federal trough," Center for Public Integrity [CPI].
August 2, 2000 Updated: 12:19 pm, May 19, 2014;
https://www.publicintegrity.org/2000/08/02/3279/cheney-led-halliburton-feast-federal-trough.
Alfa sued CPI for libel over the release of the Royce report,
but in 2005 the suit was dismissed. Federal Judge John D. Bates
wrote "No claim is made that the defendants fabricated the
assertions in the CPI article. Nor are the allegations of
organized mob ties and drug trafficking so inherently improbably
[sic] that actual malice can be presumed" ("Libel case over
mafia-Halliburton link dismissed," Reporters' Committee for
Freedom of the Press, October 4, 2005,
http://www.rcfp.org/browse-media-law-resources/news/libel-case-over-mafia-halliburton-link-dismissed).
[63] Michael Cowley, "The Kremlin's Candidate," Politico.
May/June 2016,
http://www.politico.com/magazine/story/2016/04/donald-trump-2016-russia-today-rt-kremlin-media-vladimir-putin-213833.
[64] Natasha Bertrand, "A far-right Austrian leader who just
signed a pact with Putin says he met with Trump's national
security adviser in New York," Business Insider, December 20,
2016,
http://www.businessinsider.com/michael-flynn-putin-trump-austria-far-right-2016-12.
[65] I say "ironically," because Exxon, until the 1960s, joined
the other big oil majors in plotting to exclude the Soviet Union
from international oil markets. This change is characteristic of
how increasing globalization has changed the international deep
state.
[66]
http://www.forbes.com/sites/jenniferwang/2016/12/13/trump-taps-exxonmobil-ceo-putin-ally-rex-tillerson-to-be-secretary-of-state/
[67] Cf. Bradley Olson, "Rex Tillerson, a Candidate for
Secretary of State, Has Ties to Vladimir Putin," Wall Street
Journal, December 6, 2016,
https://www.wsj.com/articles/donald-trump-candidate-for-state-has-close-ties-to-vladimir-putin-1481033938.
[68] Julian Borger, "Rex Tillerson: an appointment that confirms
Putin's US election win," Guardian, December 13, 2016,
https://www.theguardian.com/us-news/2016/dec/11/rex-tillerson-secretary-of-state-trump-russia-putin
.
[69] Daniel Gilbert, "Sanctions Over Ukraine Put Exxon at Risk:
Deal With Russia's Rosneft to Drill in Arctic Is Crucial to Oil
Company," Wall Street Journal, September 11, 2014,
https://www.wsj.com/articles/sanctions-over-ukraine-put-exxon-at-risk-1410477455.
The deal was originally made by Rosneft with BP, but the BP deal
was blocked by a successful legal challenge from a company
controlled by Mikhail Fridman. See above.
[70] An Exxon link to the Trump campaign surfaced in June 1916,
when Paul Manafort, then the campaign chairman, hired leading
Exxon lobbyist Jim Murphy to be the campaign's national
political director (Melissa Cronin, "This lobbyist denied
climate change for ExxonMobil. Now he'll do it for Trump,"
Grist.org, June 7, 2016,
http://grist.org/climate-energy/this-lobbyist-denied-climate-change-for-exxonmobil-now-hell-do-it-for-trump/).
[71] Joe Carroll, "Exxon CEO-in-Waiting to Inherit Rex
Tillerson's Mixed Legacy." Bloomberg, December 12, 2016, 4:55 PM
PST December 13, 2016,
https://www.bloomberg.com/news/articles/2016-12-13/exxon-s-ceo-in-waiting-to-inherit-rex-tillerson-s-mixed-legacy.
[72] Farron Cousins, "Republican Attorneys General Met Secretly
with Exxon Lobbyists to Stop Climate Change Investigations,"
Desmog, September 30, 2016,
https://www.desmogblog.com/2016/09/30/republican-attorneys-general-met-secretly-exxon-stop-climate-change-investigations.
[73] John Schwartz, "Tillerson Led Exxon's Shift on Climate
Change; Some Say 'It Was All P.R.'", New York Times,
December 28, 2016,
https://www.nytimes.com/2016/12/28/business/energy-environment/rex-tillerson-secretary-of-state-exxon.html.
[74] Patricia Cohen, "Oxfam Study Finds Richest 1% Is Likely to
Control Half of Global Wealth by 2016," New York Times,
January 19, 2015. By an earlier estimate, "In 2010, the wealth
of the world's eleven million super-rich individuals stood at
$43 trillion, or 70 percent of global gross domestic product" (Financial
Times, May 6, 2012, 4).
[75] David Rothkopf, Superclass: The Global Power Elite and
the World They Are Making (New York: Farrar, Straus and
Giroux, 2009), 289; cf. xx.
[76] Naomi Klein, "It was the Democrats' embrace of
neoliberalism that won it for Trump," Guardian,
November 9, 2016,
https://www.theguardian.com/commentisfree/2016/nov/09/rise-of-the-davos-class-sealed-americas-fate.
Cf. Andrew Ross Sorkin, "Dealbook: What to Make of the 'Davos
Class' in the Trump Era," New York Times, January 16,
2017,
https://www.nytimes.com/2017/01/16/business/dealbook/world-economic-forum-davos-trump.html:
"The World Economic Forum - an annual gathering of global policy
and business leaders
known as the 'Davos class.' It is this
group of so-called plutocrats that largely failed to anticipate
- and may have even unconsciously generated - the seeping
anti-establishment movement across the globe.
[77] Matt Clinch, "The 'party of Davos' wakes up to the new, new
world order," CNBC, Januaty 9, 2017
http://www.cnbc.com/2017/01/09/davos-wakes-up-to-the-trump-new-world-order.html.
[78] Matthew Rozsa, "President Trump's United Nations, European
Union ambassadors send early message, shock waves," Salon,
January 27, 2017,
http://www.salon.com/2017/01/27/president-trumps-united-nations-european-union-ambassadors-send-early-message-shock-waves/.
[79] The "party of Davos" is a target of a new book by Hugh
Hewitt (The Fourth Way: The Conservative Playbook for a
Lasting GOP Majority (New York: Simon & Schuster, January
2017).
[80] "Trump says plans lots of bilateral trade deals with quick
termination clauses," Reuters, January 26, 2017,
http://www.reuters.com/article/us-usa-trump-trade-idUSKBN15A2MP
[81] Clinch, "The 'party of Davos' wakes up to the new, new
world order," CNBC, January 9, 2017.
[82] See Scott, The American Deep State, 10108.
[83] Michael Kinsley, "Donald Trump is actually a fascist,"
Washington Post, December 9, 2o16,
https://www.washingtonpost.com/opinions/donald-trump-is-actually-a-fascist/2016/12/09/e193a2b6-bd77-11e6-94ac-3d324840106c_story.html
|