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FOCUS | Contra-Cocaine Was a Real Conspiracy Print
Wednesday, 04 December 2013 13:01

Parry writes: "So, what is one to make of New York Magazine's decision 15 years after the CIA's confession and nearly a decade after Webb's death to lead off its snarky ridicule of 'conspiracy theories' with such a grossly inaccurate account of what was undeniably a real conspiracy?"

President Reagan at a rally for Texas Republican candidates in Irving, Texas, 10/11/82. (photo: Reagan Library)
President Reagan at a rally for Texas Republican candidates in Irving, Texas, 10/11/82. (photo: Reagan Library)


Contra-Cocaine Was a Real Conspiracy

By Robert Parry, Consortium News

04 December 13

 

n the insular world of Manhattan media, there's much handwringing over the latest blow to print publications as New York Magazine scales back from a weekly to a biweekly. But the real lesson might be the commercial failure of snarky writing, the kind that New York demonstrated in its recent hit piece on "conspiracy theories."

What was most stunning to me about the article, pegged to the 50th anniversary of John F. Kennedy's assassination, was that it began by ridiculing what is actually one of the best-documented real conspiracies of recent decades, the CIA's tolerance and even protection of cocaine trafficking by the Nicaraguan Contra rebels in the 1980s.

According to New York Magazine, the Contra-cocaine story - smugly dubbed "the last great conspiracy theory of the twentieth century" - started with the claim by "crack kingpin" Ricky Ross that he was working with a Nicaraguan cocaine supplier, Oscar Danilo Blandon, who had ties to the Contras who, in turn, had ties to the CIA.

Author Benjamin Wallace-Wells writes: "The wider the aperture around this theory, the harder its proponents work to implicate Washington, the shakier it seems: After several trials and a great deal of inquiry, no one has been able to show that anyone in the CIA condoned what Blandon was doing, and it has never been clear exactly how strong Blandon's ties to the contra leadership really were, anyway."

So, it was all a goofy "conspiracy theory." Move along, move along, nothing to see here. But neither Wallace-Wells nor his New York Magazine editors seem to have any idea about the actual history of the Contra-cocaine scandal. It did not begin with the 1996 emergence of Ricky Ross in a series of articles by San Jose Mercury-News investigative reporter Gary Webb, as Wallace-Wells suggests.

The Contra-cocaine scandal began more than a decade earlier with a 1985 article that Brian Barger and I wrote for the Associated Press. Our article cited documentary evidence and witnesses - both inside the Contra movement and inside the U.S. government - implicating nearly all the Contra groups fighting in Nicaragua under the umbrella of Ronald Reagan's CIA.

Our Contra-cocaine article was followed up by a courageous Senate investigation led by Sen. John Kerry of Massachusetts who further documented the connections between cocaine traffickers, the Contras and the Reagan administration in a report issued in 1989.

Yet, part of the scandal always was how the Reagan administration worked diligently to undercut investigations of the President's favorite "freedom fighters" whether the inquiries were undertaken by the press, Congress, the Drug Enforcement Administration or federal prosecutors. Indeed, a big part of this cover-up strategy was to mock the evidence as "a conspiracy theory," when it was anything but.

Big Media's Complicity

Most of the mainstream news media played along with the Reagan administration's mocking strategy, although occasionally major outlets, like the Washington Post, had to concede the reality of the scandal.

For instance, during the drug-trafficking trial of Panamanian dictator Manuel Noriega in 1991, U.S. prosecutors found themselves with no alternative but to call as a witness Colombian Medellín cartel kingpin Carlos Lehder, who - along with implicating Noriega - testified that the cartel had given $10 million to the Contras, an allegation first unearthed by Sen. Kerry.

"The Kerry hearings didn't get the attention they deserved at the time," a Washington Post editorial on Nov. 27, 1991, acknowledged. "The Noriega trial brings this sordid aspect of the Nicaraguan engagement to fresh public attention."

Yet, despite the Washington Post's belated concern about the mainstream news media's neglect of the Contra-cocaine scandal, there was no serious follow-up anywhere in Big Media - until 1996 when Gary Webb disclosed the connection between one Contra cocaine smuggler, Danilo Blandon, and the emergence of crack cocaine via Ricky Ross.

But the premier news outlets - the likes of the Washington Post, the New York Times and the Los Angeles Times - didn't take this new opportunity to examine what was a serious crime of state. That would have required them to engage in some embarrassing self-criticism for their misguided dismissal of the scandal. Instead, the big newspapers went on the attack against Gary Webb.

Their attack line involved narrowing their focus to Blandon - ignoring the reality that he was just one of many Contras involved in cocaine smuggling to the United States - and to Ross - arguing that Ross's operation could not be blamed for the entire crack epidemic that ravaged U.S. cities in the 1980s. And the newspapers insisted that the CIA couldn't be blamed for this cocaine smuggling because the agency had supposedly examined the issue in the 1980s and found that it had done nothing wrong.

Because of this unified assault from the major newspapers - and the corporate timidity of the San Jose Mercury-News editors - Webb and his continuing investigation were soon abandoned. Webb was pushed out of the Mercury-News in disgrace.

That let the mainstream U.S. media celebrate how it had supposedly crushed a nasty "conspiracy theory" that had stirred up unjustified anger in the black community, which had been hit hardest by the crack epidemic. The newspapers also could get some brownie points from Republicans and the Right by sparing President Reagan's legacy a big black eye.

But Webb's disclosure prompted the CIA's Inspector General Frederick Hitz to undertake the first real internal investigation of the ties between the Contra-cocaine smugglers and the CIA officers overseeing the Contra war in Nicaragua.

The CIA's Confession

When Hitz's final investigative report was published in fall 1998, the CIA's defense against Webb's series had shrunk to a fig leaf: that the CIA did not conspire with the Contras to raise money through cocaine trafficking. But Hitz made clear that the Contra war had taken precedence over law enforcement and that the CIA withheld evidence of Contra drug-smuggling crimes from the Justice Department, Congress, and even the CIA's own analytical division.

Besides tracing the extensive evidence of Contra trafficking through the entire decade-long Contra war, the inspector general interviewed senior CIA officers who acknowledged that they were aware of Contra-drug smuggling but didn't want its exposure to undermine the struggle to overthrow Nicaragua's leftist Sandinista government.

According to Hitz, the CIA had "one overriding priority: to oust the Sandinista government. . . . [CIA officers] were determined that the various difficulties they encountered not be allowed to prevent effective implementation of the Contra program." One CIA field officer explained, "The focus was to get the job done, get the support and win the war."

Hitz also recounted complaints from CIA analysts that CIA operations officers handling the Contras hid evidence of Contra-drug trafficking even from the CIA's analysts. Because of the withheld evidence, the CIA analysts incorrectly concluded in the mid-1980s that "only a handful of Contras might have been involved in drug trafficking." That false assessment was passed on to Congress and to major news organizations - serving as an important basis for denouncing Gary Webb and his disclosures in 1996.

Although Hitz's report was an extraordinary admission of institutional guilt by the CIA, it went almost unnoticed by the big American newspapers. On Oct. 10, 1998, two days after Hitz's final report was posted on the CIA's Web site, the New York Times published a brief article that continued to deride Webb but acknowledged the Contra-drug problem may have been worse than earlier understood.

Several weeks later, the Washington Post weighed in with a similarly superficial article. The Los Angeles Times never published a story on the contents of Hitz's findings though Los Angeles had been "ground zero" of the Ross-Blandon connection.

In 2000, the Republican-controlled House Intelligence Committee grudgingly acknowledged that the stories about Reagan's CIA protecting Contra drug traffickers were true. The committee released a report citing classified testimony from CIA Inspector General Britt Snider (Hitz's successor) admitting that the spy agency had turned a blind eye to evidence of Contra-drug smuggling and generally treated drug smuggling through Central America as a low priority.

"In the end the objective of unseating the Sandinistas appears to have taken precedence over dealing properly with potentially serious allegations against those with whom the agency was working," Snider said, adding that the CIA did not treat the drug allegations in "a consistent, reasoned or justifiable manner."

The House committee's majority Republicans still downplayed the significance of the Contra-cocaine scandal, but the panel acknowledged, deep inside its report, that in some cases, "CIA employees did nothing to verify or disprove drug trafficking information, even when they had the opportunity to do so. In some of these, receipt of a drug allegation appeared to provoke no specific response, and business went on as usual."

Like the release of Hitz's report in 1998, the admissions by Snider and the House committee drew virtually no media attention in 2000 - except for a few articles on the Internet, including one at Consortiumnews.com. Because the confirmation of the Contra-cocaine scandal received so little mainstream media coverage, Gary Webb remained a pariah in his profession of journalism, making it next to impossible for him to land a decent-paying job and contributing to his suicide in 2004. [For details, see Consortiumnews.com's "The Warning in Gary Webb's Death."]

What's a Conspiracy Theory?

So, what is one to make of New York Magazine's decision 15 years after the CIA's confession and nearly a decade after Webb's death to lead off its snarky ridicule of "conspiracy theories" with such a grossly inaccurate account of what was undeniably a real conspiracy?

One might have hoped that a publication that fancies itself as iconoclastic would have had the journalistic courage not to simply reinforce a fake conventional wisdom - and have the human decency not to join in the mainstream media's dancing on Webb's grave. But that is apparently too much to expect of New York Magazine.

There is another problem in New York's sneering takedown of "conspiracy theories" - and that is the magazine lacks a decent definition of what a "conspiracy theory" is, especially given the pejorative implications of the phrase.

In my view, a "conspiracy theory" is a case of fanciful, usually fact-free speculation positing some alternative explanation for an event. Typically, a "conspiracy theory" not only lacks any real evidence but often ignores compelling evidence that goes in other directions. For instance, the current conspiracy theory about President Barack Obama being born in Kenya despite birth certificates and birth notices of his birth in Hawaii.

By contrast, a real conspiracy can be defined as a collaboration among individuals to engage in criminal or scandalous behavior usually in a secretive manner. There are many such examples involving high government officials, including Richard Nixon's Watergate and Ronald Reagan's Iran-Contra Affair.

The difference between a "conspiracy theory" and a real conspiracy is that the latter is supported by substantial evidence and the former is reliant on someone simply thinking something up, often with partisan or ideological motivation.

There is, of course, much gray area between those two poles. There are cases in which some evidence exists indicating a conspiracy but it's short of conclusive proof. In such cases of legitimate doubt, aggressive investigations are warranted - and the U.S. news media should welcome, not punish, these lines of inquiry.

Instead, the role of the mainstream press often has been to ridicule journalists and other investigators who venture into these murky waters. Often, that ridicule leads to serious cases of journalistic malfeasance as occurred with the mistreatment of Gary Webb and the Contra-cocaine story.

Other times the smug "anti-conspiracism" makes it impossible to get at the facts and to inform the American public about wrongdoing in a timely fashion. That can allow corrupt government officials to go unpunished and sometime to return to government in powerful positions.

The other important lesson to take from New York Magazine's lumping real conspiracies and possible conspiracies in with fanciful conspiracy theories is that each case is unique and should be treated as such. Each set of facts should be examined carefully.

Just because one conspiracy can be proven doesn't substantiate every claim of conspiracy. And the opposite is also true, just because one fact-free conspiracy theory is nutty doesn't mean all suspected conspiracies deserve ridicule.

Through its anti-journalistic behavior, New York Magazine makes it hard to mourn its current financial predicament as it cuts back to publishing every other week. Indeed, the magazine is making a case that few tears should be shed if it disappears entirely.

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FOCUS | Why Elizabeth Warren Should Stay Where She Is Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=11104"><span class="small">Charles Pierce, Esquire</span></a>   
Wednesday, 04 December 2013 11:33

Pierce writes: "If Warren stays in the Senate, she can keep pushing her issues and keep pissing off all the right people."

Sen. Elizabeth Warren. (photo: AP)
Sen. Elizabeth Warren. (photo: AP)


Why Elizabeth Warren Should Stay Where She Is

By Charles Pierce, Esquire

04 December 13

 

here are a number of reasons why I pray that Senator Professor Elizabeth Warren ignores the importunings of silly pundits and stays right where she is in the United States Senate for, oh, I don't know, seven terms or so. The most important reason is pure selfishness. She's our senator. You bastids go find one of your own. The second reason, and one that is almost as important, is that she is invaluable right where she is because she is making all the right people completely crazy. Former senator McDreamy, for example, whom she beat like a tin drum in 2012, hasn't gotten over it yet, and is still making noises about loading his carpetbag into the bed of his Potemkin pickup truck and going to New Hampshire in order to get beaten like a tin drum by Jeanne Shaheen. (Run, Scotty, run!) It is pretty plain that she's wrongfooted Wall Street poodle Chuck Schumer pretty badly, too.

CS: You know I helped persuade her to run. There is a good little story. [Looks to aide] I can tell this. I went to Scott Brown and said, "If you give us the sixtieth vote for the Citizens United rollback, we won't go after you." I spent a lot of time lobbying him, and met some of his friends and had them lobby him. He said yes. Then he said no. So I wanted to recruit the strongest candidate against him, and I thought that was Elizabeth Warren.

Damn, all McDreamy had to do was sign on to the useless fig-leaf DISCLOSE Act and the DSCC would have taken a dive on him? He really is as dumb as a rock. And speaking of which, our Chuck is a real rock, is, as he demonstrates later on in the same interview.

CS: It has got to be, to me, a careful balance, OK? Wall Street excesses helped lead to the Great Recession. And to sit there and do nothing, or do what the Republicans want-repeal Dodd-Frank-makes no sense. But on the other hand, I think that you just don't attack Wall Street because they're successful or rich.

No, Chuck. Wall Street excesses did not "help lead to the Great Recession." Wall Street corruption and greed and (I would argue) criminal malfeasance directly caused the Great Recession. And I don't attack them because they're successful or rich. I attack them because they are thieves.

CS: You don't want to go after them for the sake of going after them. The left-wing blogs want you to be completely and always anti-Wall Street. It's not the right way to be.

IC: So are the left-wing blogs as bad as the Tea Party ones in this case?

CS: Left-wing blogs are the mirror image. They just have less credibility and less clout.

Sit, Chuck. Roll over. Good dog.

And it's not just Schumer, either. We are hearing from the Ghosts Of Fake Centrists Past (the inexcusable Al From as well as steam-grate philosopher Pat Caddell) and Centrists Present (the Third Way grifters), all of whom warn of the dangers of taking up too loudly for anyone who can't afford to buy them all dinner. We have even heard from Richard Cohen, who is making a strong rush in the final straightaway to have the single stupidest year ever produced by a pundit not named Bill Kristol.

The boomlet for Warren shows a yearning for a revival of muscular liberalism. But the Obamacare mess has even some liberals - the editor of the aforementioned New Republic, for instance - wondering if this advance in liberalism hasn't in fact set the movement back. To the Democratic left, Warren's heat is the remedy for Obama's cool. To the rest of the country, she might look like Obama all over again.

This may be the most singularly stupid paragraph in a career of singularly stupid paragraphs. First of all, outside of the pages of The New Republic, and that sad battalion of people who for some reason still take the alma mater of Stephen Glass, Ruthie Shalit, Elizabeth McCaughey et.al. seriously, there is no boomlet for Elizabeth Warren. Some people want her to run for president. That is all. And any liberal who decides at this point in time that a botched website and some ginned-up fake hysteria has set liberalism back deserves to be the editor of The New Republic.

I do not want Elizabeth Warren to run for president because I want her to continue to be my senator. I also don't want her to run for president because she might lose -- and, considering she hasn't done anything you do to start a presidential campaign yet, that's the way to bet right now -- and then her message goes down the memory hole. Leave the Republicans out of it for a second. Among the Democrats, she immediately becomes George McGovern. The Schumers, and Froms, and Caddells, and Cohens get to tut-tut liberal populism into yet another early grave and they get license to start taking bids from whoever they see as the next Evan Bayh. If Warren stays in the Senate, she can keep pushing her issues and keep pissing off all the right people. (My dream is not Warren in the White House. It's Warren as chair of the Senate Banking Committee, subpoena power and all.) She can do the work there that desperately needs to be done.

And, besides, you bastids get your own.

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Top 10 Ways the US Is the Most Corrupt Country in the World Print
Tuesday, 03 December 2013 14:55

Cole writes: "While it is true that you don't typically have to bribe your postman to deliver the mail in the US, in many key ways America's political and financial practices make it in absolute terms far more corrupt than the usual global South suspects. After all, the US economy is worth over $16 trillion a year, so in our corruption a lot more money changes hands."

(illustration: dew4/Wikipedia)
(illustration: dew4/Wikipedia)


Top 10 Ways the US Is the Most Corrupt Country in the World

By Juan Cole, Informed Comment

03 December 13

 

hose ratings that castigate Afghanistan and some other poor countries as hopelessly "corrupt" always imply that the United States is not corrupt.

VOA reports:

While it is true that you don't typically have to bribe your postman to deliver the mail in the US, in many key ways America's political and financial practices make it in absolute terms far more corrupt than the usual global South suspects. After all, the US economy is worth over $16 trillion a year, so in our corruption a lot more money changes hands.

1. Instead of having short, publicly-funded political campaigns with limited and/or free advertising (as a number of Western European countries do), the US has long political campaigns in which candidates are dunned big bucks for advertising. They are therefore forced to spend much of their time fundraising, which is to say, seeking bribes. All American politicians are basically on the take, though many are honorable people. They are forced into it by the system. House Majority leader John Boehner has actually just handed out cash on the floor of the House from the tobacco industry to other representatives.

When French President Nicolas Sarkozy was defeated in 2012, soon thereafter French police actually went into his private residence searching for an alleged $50,000 in illicit campaign contributions from the L'Oreale heiress. I thought to myself, seriously? $50,000 in a presidential campaign? Our presidential campaigns cost a billion dollars each! $50,000 is a rounding error, not a basis for police action. Why, George W. Bush took millions from arms manufacturers and then ginned up a war for them, and the police haven't been anywhere near his house.

American politicians don't represent "the people." With a few honorable exceptions, they represent the the 1%. American democracy is being corrupted out of existence.

2. That politicians can be bribed to reduce regulation of industries like banking (what is called "regulatory capture") means that they will be so bribed. Billions were spent and 3,000 lobbyists employed by bankers to remove cumbersome rules in the zeroes. Thus, political corruption enabled financial corruption (in some cases legalizing it!) Without regulations and government auditing, the finance sector went wild and engaged in corrupt practices that caused the 2008 crash. Too bad the poor Afghans can't just legislate their corruption out of existence by regularizing it, the way Wall street did.

3. That the chief villains of the 2008 meltdown (from which 90% of Americans have not recovered) have not been prosecuted is itself a form of corruption.

4. The US military budget is bloated and enormous, bigger than the military budgets of the next twelve major states. What isn't usually realized is that perhaps half of it is spent on outsourced services, not on the military. It is corporate welfare on a cosmic scale. I've seen with my own eyes how officers in the military get out and then form companies to sell things to their former colleagues still on the inside.

5. The US has a vast gulag of 2.2 million prisoners in jail and penitentiary. There is an increasing tendency for prisons to be privatized, and this tendency is corrupting the system. It is wrong for people to profit from putting and keeping human beings behind bars. This troubling trend is made all the more troubling by the move to give extra-long sentences for minor crimes, to deny parole and to imprison people for life for e,g, three small thefts.

6. The rich are well placed to bribe our politicians to reduce taxes on the rich. This and other government policies has produced a situation where 400 American billionaires are worth $2 trillion, as much as the bottom 150 million Americans. That kind of wealth inequality hasn't been seen in the US since the age of the robber barons in the nineteenth century. Both eras are marked by extreme corruption.

7. The National Security Agency's domestic spying is a form of corruption in itself, and lends itself to corruption. With some 4 million government employees and private contractors engaged in this surveillance, it is highly unlikely that various forms of insider trading and other corrupt practices are not being committed. If you knew who Warren Buffett and George Soros were calling every day, that alone could make you a killing. The American political class wouldn't be defending this indefensible invasion of citizens' privacy so vigorously if someone somewhere weren't making money on it.

8. As for insider trading, it turns out Congress undid much of the law it hastily passed forbidding members, rather belatedly, to engage in insider trading (buying and selling stock based on their privileged knowledge of future government policy). That this practice only became an issue recently is another sign of how corrupt the system is.

9. Asset forfeiture in the 'drug war' is corrupting police departments and the judiciary.

10. Money and corruption have seeped so far into our media system that people can with a straight face assert that scientists aren't sure human carbon emissions are causing global warming. Fox Cable News is among the more corrupt institutions in American society, purveying outright lies for the benefit of the billionaire class. The US is so corrupt that it is resisting the obvious urgency to slash carbon production. Even our relatively progressive president talks about exploiting all sources of energy, as though hydrocarbons were just as valuable as green energy and as though hydrocarbons weren't poisoning the earth.

Even Qatar, its economy based on natural gas, freely admits the challenge of human-induced climate change. American politicians like Jim Inhofe are openly ridiculed when they travel to Europe for their know-nothingism on climate.

So don't tell the Philippines or the other victims of American corruption how corrupt they are for taking a few petty bribes. Americans are not seen as corrupt because we only deal in the big denominations. Steal $2 trillion and you aren't corrupt, you're respectable.

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Stuff Your Stockings and Help Save Our Democracy Print
Tuesday, 03 December 2013 14:25

Cohen writes: "With money corrupting politics, partisans shuttering government, and brinksmanship replacing leadership, this Christmas I'm giving the give the gift of democracy - rubber stamping technology that's designed to stamp big money out of politics from the StampStampede.org."

Ben Cohen has a great gift idea. (photo: Saul Loeb/Getty Images):
Ben Cohen has a great gift idea. (photo: Saul Loeb/Getty Images)


Stuff Your Stockings and Help Save Our Democracy

By Ben Cohen, Reader Supported News

03 December 13

 

ince opening my first scoop shop in Burlington with Jerry, I've given the gift of ice cream to friends and family each Christmas. Cherry Garcia for Jerry. Wavy Gravy for, of course, Wavy. And new flavors like Americone Dream for Stephen.

But this Christmas is different. With money corrupting politics, partisans shuttering government, and brinksmanship replacing leadership, this Christmas I'm giving the give the gift of democracy -- rubber stamping technology that's designed to stamp big money out of politics from the StampStampede.org. The Stampede is a grassroots organization with tens of thousands of people legally stamping messages on hundreds of thousands of dollars in order to support reforms that will get money out of politics and stamp out corruption.

I'm sending my friend Jostein Solheim, Ben and Jerry's CEO, the stylish, executive model pocket stamp, so he's prepared to stamp "Not to Be Used for Bribing Politicians" on any bill he uses during the day. It's a folding compact wonder of a stamp that is sure to impress and amaze while making other CEO's envious.

For so generously helping the Stamp Stampede get thousands of stamps in the hand of citizens who want their democracy back, David Crosby, Steven Stills & Graham Nash will get a special, limited edition CSN branded stamp to take out on tour with them. Thanks for doing your part spread the message that "The system isn't broken, it's fixed!"

I am sending the hard workers with Communication Workers of America hundreds of stamps with the message "Stamp Out Big Money in Politics" for their Christmas stockings.

For the national organizations like Move to Amend, Free Speech for People, People for the American Way, RepresentDotUs, Common Cause, Public Campaign, American's for Campaign Finance Reform and Public Citizen -- who are working to stop corruption and promote clean election laws and campaign finance reforms that will restrain unbridled election spending, I am sending them a special "Not to be Used for Buying Elections" self-inking stamps for rapid fire stamp action.

My list runneth over. What about yours? This year, give your friends and family the gift of democracy. Help them join the thousands of Americans who are already stamping dollars bills with messages like "Not to Be Used for Bribing Politicians." Every stamped bill will be seen by an average of 875 people and will help grow the movement to #GetMoneyOut of politics. Stamp 5 bills a day for a year and that's a million eyeballs.

We're already making big waves. So far, 16 states and over 500 municipalities have passed ballot initiatives calling on Congress to propose a constitutional amendment that says: 1) Money is not free speech; and 2) Corporations are not people. Over 150 congressmen and President Obama say they would support an amendment. 80 percent of Americans -- Democrats and Republicans -- think there is too much money in politics. But change won't happen if we sit back and let other people do the dirty work.

If your friends join with my friends and go to stampstampede.org to get stamps (sold at cost), and their friends and friends of friends start stamping too, pretty soon we'll have a national petition on steroids to take our democracy back right there on the money we use everyday.

Together we can create a stamping tsunami to clean up Washington and restore our democracy.

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5 Ways Our Lives Are Being Violated By Corporate Greed Print
Monday, 02 December 2013 14:28

Buchheit wries: "We already pay dearly for energy, medicine, banking, and telecommunications services. But a little research reveals that we're paying more - much more - in a variety of ways that our business-friendly mainstream media won't talk about."

File photo, Bank of America building. (photo: AP)
File photo, Bank of America building. (photo: AP)


5 Ways Our Lives Are Being Violated By Corporate Greed

By Paul Buchheit, AlterNet

02 December 13

 

Congress' response to all this? They would like SNAP and Social Security recipients to go find a job.

e already pay dearly for energy, medicine, banking, and telecommunications services. But a little research reveals that we're paying more -- much more -- in a variety of ways that our business-friendly mainstream media won't talk about.

1. Drug Companies: The Body Snatchers

A report by Battelle Memorial Institutedetermined that the $4 billion government-funded Human Genome Project(HGP) will generate economic activity of about $140 for every dollar spent. Although that estimate is controversial, drug industry executives sayit's just a matter of time before the profits roll in.

Big business is quickly making its move. Celera Genomics was first, as the company initiated a private version of the genome project, incorporatingthe public data into their work, but forbidding the public effort to use Celera data. Abbott Labs is developing productsbased on the HGP. Merck'sautomated biotechnology facility was made possible by the HGP. Two-thirds of the products at Bristol-Myers Squibbhave been impacted by the HGP. Pfizeris starting to make big profits from its genome-based cancer treatments.

But the industry is going beyond profits, to the actual privatization of our bodies. One-fifth of the human genomeis privately owned through patents. Strains of influenza and hepatitis have been claimedby corporate and university labs, preventing researchers from using the patented life forms to perform cancer research.

As if to mock us while taking over our public research, some of the largest drug companies haven't been paying much in taxes. Pfizerhad 40% of its 2011-12 revenues in the U.S., but declared almost $7 billion in U.S. lossesto go along with $31 billion in foreign profits. Abbott Labshad 42% of its sales in the U.S., but declared a lossin the U.S. along with $12 billion in foreign profits.

2. Oil Companies: Ripping Up the Country, Ripping Off the TaxpayersIn the past year the U.S. has become a net exporterof oil, putting us in a position, according to the International Energy Agency, to be almost energy self-sufficient by 2035. Just five years ago we were spending $341 billion on crude oil imports. In 2012 we exported $117 billion worth of processed oil products.

How have the big oil companies reimbursed America for our oil and natural gas supplies, and for their pollutionand the environmental degradation of mining and fracking? Exxon, with 70-90% of its productive oil and gas wells in the U.S., declares only 15% of its income as earned here, and pays only 2.2%of its total income in U.S. taxes. Chevronhas about 75% of its oil and gas wells and 90% of its pipeline mileage are in the United States, yet the company claims only 20% of its income in the U.S., and pays only 3.8%of its total income in U.S. taxes.

3. Telecommunications: We're Paying Them to Spy on Us

The CIA and NSA have been using our tax money to pay AT&T and Google and other companies to access its data - our data - for surveillance purposes. With almost no transparency or oversight, the CIAhas been paying AT&T to monitor our overseas phone calls. Hundreds of dollars per customer per month goes to Verizonfor similar snooping. The NSA compensatedGoogle, Yahoo, Microsoft and Facebook for penalties accrued in the secretive Prism surveillance program.

As with the oil companies, tax avoidance by the telecommunications firms further insults middle-class Americans. AT&T paid almost no federal income taxes in 2011-12; Verizon paid about 2 percent; Googleis notorious for its tax avoidance schemes.

4. Banks: Almost 40% of Our 401(k)s Lost in Fees

Based on the 6% historicalstock market return, an individual investing $1,000 a yearfor 30 years in a non-fee fund and then holding the accumulated sumfor another 20 years would end up with $269,000. Imposing the industry average 1.3% feewould reduce the final total to $165,000, a 39% reduction.

In other words, almost $2 of every $5 in potential 401(k) earnings is lost because of bank fees.

The importance of preserving Social Security becomes even more apparent in light of this 401(k) exploitation. Since 1983, the number of private sector workers depending on a 401(k) instead of a company pension has increasedfrom 12 percent to 68 percent.

5. Banks II: Revenue Here, Profits Overseas

Bank of AmericaCEO Brian Moynihan once lamented that nobody understood "how much good" his employees do. But his company, despite making a whopping 82% of its 2011-12 revenue in the U.S., declared a $10 billion profit in foreign countries -- and $7 billion in U.S. losses. Citigroupisn't much better. The company had 42% of its 2011-12 revenue in North America (almost all U.S.) but declared a $28 billion profit in foreign countries, and a $5 billion U.S. loss.

Congress' response to all this? They would like SNAP and Social Security recipients to go find a job. Even though all the industries above, with the exception of oil and gas, have been among the leaders in cutting jobs.


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