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Obama Should Be Taking On Romney Over Taxes Print
Thursday, 09 August 2012 13:34

Taibbi writes: "The Democrats want everyone in the world to know that Mitt Romney won't release a decades' worth of tax returns, and they apparently want voters to suspect that he didn't pay any tax during that time."

Why isn't Obama pushing harder for Romney to release his tax returns? (photo: Justin Sullivan/Getty Images)
Why isn't Obama pushing harder for Romney to release his tax returns? (photo: Justin Sullivan/Getty Images)


Obama Should Be Taking On Romney Over Taxes

By Matt Taibbi, Rolling Stone

09 August 12

 

he ongoing war between Harry Reid and Mitt Romney is certainly interesting, as battles between congenitally unlikeable politicians go, but to me it misses the point. The Democrats want everyone in the world to know that Mitt Romney won't release a decades' worth of tax returns, and they apparently want voters to suspect that he didn't pay any tax during that time. They're using Harry Reid to spread that message, which makes enough sense politicially, I guess.

But what they should be doing instead is hammering Romney on the missing returns, yes, but focusing even more on the returns he did release. We've known for seven months now, for instance, that Romney paid $3 million in federal taxes in 2010 on $21.7 million in taxable revenue, an effective tax rate of 13.9 percent. Which, as most people know, is less than half the rate most people pay on their income tax.

When Romney released these numbers, he said they were "entirely legal and fair," and added, "I'm proud of the fact that I pay a lot of taxes."

The Romney tax returns are a prime example of our increasingly two-tiered bureaucratic system, in which there is one set of rules for poor and middle-class people, and another set of rules for people like Mitt Romney.

The most common method of giving preferential treatment to the rich is through semantics. The old classic was that you called a rich kid blowing coke in his dorm room one thing, and you called a black street kid smoking crack something else, and the two got different penalties for the same crime - cocaine use.

Or, and this one is still true in some states, the rich white kid who uses a fake ID to get into a club gets hit with a misdemeanor and a fine, while an immigrant who uses a fake ID to get a job at a chicken plant gets dragged in for a felony and can get up to 15 years in jail. Both offenses are simple forgery, but one is also called felony fraud and you get real prison time for it.

In Mitt's case, the money you and I make to support ourselves is called income and is taxed up to 35 percent, but the money Mitt makes raiding companies with borrowed money and extracting draconian management fees from captive companies that have no choice but to pay them is called "Carried Interest," and taxed at a top rate of 15%.

The ostensible excuse for this outrageous difference is based upon a built-in cultural value judgment, which says that the work Mitt Romney does raiding companies with borrowed money is more valuable than the work ordinary people do laying asphalt or teaching autistic children. Here's what one private equity spokesperson said by way of explanation for this difference:

Steve Judge, the president of the Private Equity Growth Capital Council, a trade group for private equity funds, said carried interest is a way to reward risk takers in a way that tax havens do not. "They don't have the purpose of incentivizing risk taking," Judge said. "That makes it inappropriate to blend carried interest with them."

So the carried interest tax break is a way to "incentivize" the kind of work Mitt Romney does. One wonders then if the relatively higher tax rates paid by teachers and librarians and cops is ... what? A disincentive? Anyway, it's this skewed set of obligations that Mitt Romney thinks is "fair."

The Obama administration, if it wanted to, could make a lot of hay over this. It could say, "Mitt Romney doesn't want to release his tax returns for years and years during the last decade. But the years for which he did release returns, he paid a rate that's less than half of what most ordinary American professionals make - and he thinks that's 'fair.'"

Now, Obama has gone after Mitt's tax returns - a little. He's released a few ads here and there, including one called "Makes You Wonder" that called Mitt's use of carried interest in his tax return a "trick," a semantic move for which Obama was criticized, since it was actually nothing of the sort. Mitt Romney's ability to pay a top rate of 15% for his work was no trick at all but a fully-legal expression of the values of our current political system, a system, again, that Mitt Romney is "proud of" and thinks is "fair."

The reason the Obama administration hasn't gone after this aggressively is probably the same reason it hasn't fought harder to repeal that carried interest tax break (which Obama incidentally promised to do four years ago), and the same reason that everyone from Corey Booker to Bill Clinton has urged Obama to lay off the theme of private equity thuggery in his campaign against Romney. Big-time politicians are still afraid to explain to the American people how exactly it is that many Wall Street firms make their money, because they're afraid to lose access to the crumbs those firms sometimes toss their way.

In the case of Romney, what we've mostly heard is that he's a turnover specialist who sometimes creates jobs and sometimes eliminates them - a kind of ideologically-neutral efficiency consultant who takes a cut when poorly-run companies cut out the fat. The Obama ads about Bain have been emotionally effective, but they're still frustratingly vague about the actual mechanics of these takeovers. We learn from these ads that a bunch of rich guys took over plants and fired workers, but what we don't learn is how companies like Bain raise the money for those takeovers, why the plants subsequently become cash-poor, how this industry works generally, and not just at Bain.

In fact the takeover method espoused by Bain and many other private equity firms is a lot closer to the Tony Soprano-takes-over-Davey-Scatino's-sporting-goods-store "Bust Out" model (and we'll be getting into this more in the magazine in upcoming weeks) than it is to anything like legitimate consulting.

Barack Obama is one of the few politicians with the communication skills to explain this to middle America, but he's refusing to go there, probably because he's still hoping for a post-election rapprochement with Wall Street. He wants to go after Bain Capital, but not private equity in general; he wants to go after Mitt Romney's missing tax returns, but not the tax returns of all people like Mitt Romney.

That makes him look weak and indecisive, and it makes his message confusing.

In the meantime, there are going to be a lot of these battles-by-proxy, in which surrogates like Harry Reid try to egg Romney into releasing his tax returns. There's no doubt the returns are embarrassing - otherwise Romney would have released them by now. And there's no doubt that Romney should take heat for not releasing those returns. But there's enough information already for Barack Obama to tell a powerful story about wealth and privilege to most ordinary Americans. He just doesn't want to tell it.


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What Else Is Mitt Hiding? Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=5903"><span class="small">Michael Tomasky, The Daily Beast</span></a>   
Wednesday, 08 August 2012 09:39

Intro: "Why does it matter that Mitt won’t release his tax returns? Because it’s yet another sign that the man suffers from a pathological mixture of insecurity and entitlement."

Mitt Romney would rather take the heat for sitting on his tax returns than release them. (photo: AP)
Mitt Romney would rather take the heat for sitting on his tax returns than release them. (photo: AP)



What Else Is Mitt Hiding?

By Michael Tomasky, The Daily Beast

08 August 12

 

hat earthly power can make Mitt Romney release his tax returns? None whatsoever. Incredible as it may seem, it's true: He can go all the way to November 6 without giving an inch, and there's not one thing anyone can do about it. He pretty obviously thinks that the heat he's taking for sitting on the returns is more bearable than the heat he'd have to endure by releasing them. And that calculation says something astonishing about the man, and ultimately, that is the issue here - this is far more about Romney's character than it is about the money per se. And character is very quickly becoming the issue that the Obama camp hadn't even planned on exploiting but now must, because Romney's lack of it has become so obvious.

Yes, I think Harry Reid is hitting a little below the belt, as I wrote last week. But the bottom line here isn't Reid. It's the returns. Romney can, in one day, turn Harry Reid into a liar and a laughing stock. So why hasn't he? There are just two possible explanations.

The first is that - and liberals and Democrats must bear this in mind - Romney might do just that. That is, maybe the information in the returns is embarrassing but no more than that, and Romney is just stringing everyone along. Say they reveal that Romney paid 11 percent or 9 percent or even 7 percent some years. That's bad for him politically, but it's not a nuclear bomb. And indeed, given how dark the speculation is right now about how whatever is in there must be terrible, this would be a pretty brilliant strategy: Let everything build to a fever pitch, with melodramatic speculation, and then, if the released returns reveal anything less serious than Reid's charge (no taxes for a number of years), the media will decide that the Democrats overhyped the story.

OK. It's a possibility. But it isn't likely. Nothing about the way Romney comports himself suggests the above. That little chuckle of his is always the giveaway that he's nervous. It's the chuckle that came out involuntarily when ABC's David Muir interviewed him on the subject in Israel, and it brings us to the other and more likely possibility - that something is very wrong indeed in the returns. So wrong, in fact, that he'd rather go through 13 more weeks of this than budge an inch.

Think about it. Through a week of a Democratic convention, when his tax returns will be mentioned by speaker after speaker. Through the early fall campaigning. Through the debates, when he will again say that he feels he's revealed all he needs to reveal. Through the campaign's final, home-stretch weeks. If he hasn't released more returns, then by mid-October, this will be one of three main things the average American knows about Mitt Romney: that he's rich, that he's running for president, and that he won't release his tax returns.

That will have to be devastating. And it will be something he brought completely on himself, either by refusing to release the returns or by doing whatever it is he did in the first place that he's now hiding. My Beast colleague Peter Beinart is correct to write that how much Romney paid in taxes doesn't have anything to do with the larger debate we're having in this election about "whether the federal government should try to significantly regulate capitalism." But it has everything to do with Romney's character - his sense of entitlement, the Master-of-the-Universe-y aura of impatient superiority that was undoubtedly a great virtue in the corporate world but is very much the opposite in the civic one, and the weird insecurity that lurks underneath that veneer of über-confidence. And those things are very germane to what sort of president he'd be.

Hiding his tax returns is bad enough. But also hidden are the names of his bundlers, certain Salt Lake Olympic records, and records from his tenure as governor. That's roughly ... oh, his entire career. It's bad enough that he thinks he can make it to the White House in this fashion. But it's worse that he wants to. Someone running for the presidency should be happy to share that information, especially when it's your own father who blazed this particular trail in the first place.

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The Science of Genocide Print
Tuesday, 07 August 2012 13:38

Hedges writes: "It was science, industry and technology that made possible the 20th century's industrial killing. These forces magnified innate human barbarity."

A casualty of the bombing of Nagasaki, Japan, in 1945. (photo: PRWeb)
A casualty of the bombing of Nagasaki, Japan, in 1945. (photo: PRWeb)


The Science of Genocide

By Chris Hedges, Truthdig

07 August 12

 

n this day in 1945 the United States demonstrated that it was as morally bankrupt as the Nazi machine it had recently vanquished and the Soviet regime with which it was allied. Over Hiroshima, and three days later over Nagasaki, it exploded an atomic device that was the most efficient weapon of genocide in human history. The blast killed tens of thousands of men, women and children. It was an act of mass annihilation that was strategically and militarily indefensible. The Japanese had been on the verge of surrender. Hiroshima and Nagasaki had no military significance. It was a war crime for which no one was ever tried. The explosions, which marked the culmination of three centuries of physics, signaled the ascendancy of the technician and scientist as our most potent agents of death.

"In World War II Auschwitz and Hiroshima showed that progress through technology has escalated man's destructive impulses into more precise and incredibly more devastating form," Bruno Bettelheim said. "The concentration camps with their gas chambers, the first atomic bomb ... confronted us with the stark reality of overwhelming death, not so much one's own-this each of us has to face sooner or later, and however uneasily, most of us manage not to be overpowered by our fear of it-but the unnecessary and untimely death of millions. ... Progress not only failed to preserve life but it deprived millions of their lives more effectively than had ever been possible before. Whether we choose to recognize it or not, after the second World War Auschwitz and Hiroshima became monuments to the incredible devastation man and technology together bring about."

The atomic blasts, ignited in large part to send a message to the Soviet Union, were a reminder that science is morally neutral. Science and technology serve the ambitions of humankind. And few in the sciences look beyond the narrow tasks handed to them by corporations or government. They employ their dark arts, often blind to the consequences, to cement into place systems of security and surveillance, as well as systems of environmental destruction, that will result in collective enslavement and mass extermination. As we veer toward environmental collapse we will have to pit ourselves against many of these experts, scientists and technicians whose loyalty is to institutions that profit from exploitation and death.

Scientists and technicians in the United States over the last five decades built 70,000 nuclear weapons at a cost of $5.5 trillion. (The Soviet Union had a nuclear arsenal of similar capability.) By 1963, according to the Columbia University professor Seymour Melman, the United States could overkill the 140 principal cities in the Soviet Union more than 78 times. Yet we went on manufacturing nuclear warheads. And those who publicly questioned the rationality of the massive nuclear buildup, such as J. Robert Oppenheimer, who at the government lab at Los Alamos, N.M., had overseen the building of the two bombs used on Japan, often were zealously persecuted on suspicion of being communists or communist sympathizers. It was a war plan that called for a calculated act of enormous, criminal genocide. We built more and more bombs with the sole purpose of killing hundreds of millions of people. And those who built them, with few exceptions, never gave a thought to their suicidal creations.

"What are we to make of a civilization which has always regarded ethics as an essential part of human life [but] which has not been able to talk about the prospect of killing almost everyone except in prudential and game-theoretical terms?" Oppenheimer asked after World War II.

Max Born, the great German-British physicist and mathematician who was instrumental in the development of quantum mechanics, in his memoirs made it clear he disapproved of Oppenheimer and the other physicists who built the atomic bombs. "It is satisfying to have had such clever and efficient pupils," Born wrote, "but I wish they had shown less cleverness and more wisdom." Oppenheimer wrote his old teacher back. "Over the years, I have felt a certain disapproval on your part for much that I have done. This has always seemed to me quite natural, for it is a sentiment that I share." But of course, by then, it was too late.

It was science, industry and technology that made possible the 20th century's industrial killing. These forces magnified innate human barbarity. They served the immoral. And there are numerous scientists who continue to work in labs across the country on weapons systems that have the capacity to exterminate millions of human beings. Is this a "rational" enterprise? Is it moral? Does it advance the human species? Does it protect life?

For many of us, science has supplanted religion. We harbor a naive faith in the godlike power of science. Since scientific knowledge is cumulative, albeit morally neutral, it gives the illusion that human history and human progress also are cumulative. Science is for us what totems and spells were for our premodern ancestors. It is magical thinking. It feeds our hubris and sense of divine empowerment. And trusting in its fearsome power will mean our extinction.

The 17th century Enlightenment myth of human advancement through science, reason and rationality should have been obliterated forever by the slaughter of World War I. Europeans watched the collective suicide of a generation. The darker visions of human nature embodied in the works of Fyodor Dostoevsky, Leo Tolstoy, Thomas Hardy, Joseph Conrad and Frederick Nietzsche before the war found modern expression in the work of Sigmund Freud, James Joyce, Marcel Proust, Franz Kafka, D.H. Lawrence, Thomas Mann and Samuel Beckett, along with atonal and dissonant composers such as Igor Stravinsky and painters such as Otto Dix, George Grosz, Henri Matisse and Pablo Picasso. Human progress, these artists and writers understood, was a joke. But there were many more who enthusiastically embraced new utopian visions of progress and glory peddled by fascists and communists. These belief systems defied reality. They fetishized death. They sought unattainable utopias through violence. And empowered by science and technology, they killed millions.

Human motives often are irrational and, as Freud pointed out, contain powerful yearnings for death and self-immolation. Science and technology have empowered and amplified the ancient lusts for war, violence and death. Knowledge did not free humankind from barbarism. The civilized veneer only masked the dark, inchoate longings that plague all human societies, including our own. Freud feared the destructive power of these urges. He warned in "Civilization and Its Discontents" that if we could not regulate or contain these urges, human beings would, as the Stoics predicted, consume themselves in a vast conflagration. The future of the human race depends on naming and controlling these urges. To pretend they do not exist is to fall into self-delusion.

The breakdown of social and political control during periods of political and economic turmoil allows these urges to reign supreme. Our first inclination, Freud noted correctly, is not to love one another as brothers or sisters but to "satisfy [our] aggressiveness on [our fellow human being], to exploit his capacity for work without compensation, to use him sexually without his consent, to seize his possessions, to humiliate him, to cause him pain, to torture and to kill him." The war in Bosnia, with rampaging Serbian militias, rape camps, torture centers, concentration camps, razed villages and mass executions, was one of numerous examples of Freud's wisdom. At best, Freud knew, we can learn to live with, regulate and control our inner tensions and conflicts. The structure of civilized societies would always be fraught with this inner tension, he wrote, because "... man's natural aggressive instinct, the hostility of each against all and of all against each, opposes this program of civilization." The burden of civilization is worth it. The alternative, as Freud knew, is self-destruction.

A rational world, a world that will protect the ecosystem and build economies that learn to distribute wealth rather than allow a rapacious elite to hoard it, will never be handed to us by the scientists and technicians. Nearly all of them work for the enemy. Mary Shelley warned us about becoming Prometheus as we seek to defy fate and the gods in order to master life and death. Her Victor Frankenstein, when his 8-foot-tall creation made partly of body pieces from graves came to ghastly life, had the same reaction as Oppenheimer when the American scientist discovered that his bomb had incinerated Japanese schoolchildren. The scientist Victor Frankenstein watched the "dull yellow eye" of his creature open and "breathless horror and disgust" filled his heart." Oppenheimer said after the first atomic bomb was detonated in the New Mexican desert: "I remembered the line from the Hindu scripture, the Bhagavad-Gita. Vishnu is trying to persuade the Prince that he should do his duty and to impress him takes on his multi-armed form and says, 'Now I am become Death, the destroyer of worlds.' I suppose we all thought that, in one way or another." The critic Harold Bloom, in words that could be applied to Oppenheimer, called Victor Frankenstein "a moral idiot."

All attempts to control the universe, to play God, to become the arbiters of life and death, have been carried out by moral idiots. They will relentlessly push forward, exploiting and pillaging, perfecting their terrible tools of technology and science, until their creation destroys them and us. They make the nuclear bombs. They extract oil from the tar sands. They turn the Appalachians into a wasteland to extract coal. They serve the evils of globalism and finance. They run the fossil fuel industry. They flood the atmosphere with carbon emissions, doom the seas, melt the polar ice caps, unleash the droughts and floods, the heat waves, the freak storms and hurricanes.

Now I am become Death, the destroyer of worlds.


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7 Ways to Beat the Ballot Bandits Print
Tuesday, 07 August 2012 13:37

Palast writes: "The revolution will not be podcast. Let go of that mouse, get out of your PJs and take the resistance door-to-door - to register the vote, to canvass the voters, to get out the vote."

Author and journalist Greg Palast discusses election fraud during a keynote speech at the 2008 Green Festival in San Francisco. (photo: Luke Thomas/FogCityJournal)
Author and journalist Greg Palast discusses election fraud during a keynote speech at the 2008 Green Festival in San Francisco. (photo: Luke Thomas/FogCityJournal)


7 Ways to Beat the Ballot Bandits

By Greg Palast, Greg Palast Investigates

07 August 12

 

1. Don't Don't DON'T Mail In Your Ballot

For those of you who mailed in your ballot, please tell me, what happened to it? You don't know, do you? I can tell you that in the last election, half a million absentee ballots were never counted, on the flimsiest of technical excuses. And when they don't count, you don't even know it. Worse: Tens of thousands of ballots are not mailed out to voters in time to return them - in which case you're out of luck. Most states won't let you vote in-precinct once you've applied to vote absentee. Every time I hear of a voter going "absentee" to avoid computer screens, I want to "go postal."

2. Vote Early - Before the Ballot Bandits Wake Up

Every state now lets voters cast ballots in designated polling stations and at county offices in the weeks before Election Day. Do it. Don't wait until Election Day to find out you have the wrong ID, your registration's "inactive," (9.9 million of you) or you're on some creep's challenge list. By Election Day, if your name is gone or tagged, there's little you can do but hold up the line.

3. Register and Register, then Register Again

Think you're registered to vote? Think again, Jack. With all this purg'n going on (13 million and counting), you could be x'd out and you don't know it. So check online with your Secretary of State's office or call your County Board of Elections. Then register your girlfriend, your wife, your mailman and your mommy. Then contact the Rainbow PUSH Coalition, the League of Women Voters and Rock the Vote and commit to a couple of days of door-to-door registration, especially at social service agency offices. In Florida, that means you'll get arrested. I'll send a file in a cake.

4. Vote Unconditionally, Not Provisionally

In 2012, they'll be handing out provisional ballots like candy, a couple million to Hispanic voters alone. If your right to vote is challenged, don't accept a provisional ballot that likely won't get counted no matter what the sweet little lady at the table tells you. She won't decide; partisan sharks will. Demand adjudication on the spot of your right to a real no-BS from poll judges. Or demand a call to the supervisor of elections; or return with acceptable ID if that's the problem. And be a champ: defend the rights of others. If you've taken Step 1 above and voted early, you have Election Day free to be a poll watcher. You'll need training and credentials, either from a voter group or, in some states, a designation from a political party. Then challenge the challengers, the weird guys with Blackberrys containing lists of "suspect" voters. Be firm, but no biting.

5. Occupy Ohio, Invade Nevada.

The revolution will not be podcast. Let go of that mouse, get out of your PJs and take the resistance door-to-door - to register the vote, to canvass the voters, to get out the vote. Donate time to your union (if you're not in a union, why not?) or to the troublemakers listed here. This may seem a stupendously unoriginal suggestion, but I know of no other method more effective for confronting the armed and dangerous junta that would seize the White House.

6. Date a Voter

Voting, like bowling and love, should never be done alone. As our sponsor, the Rev. Jesse Jackson says, make a date to 'Arrive with Five.' And keep a copy of Billionaires & Ballot Bandits in your holster, our website on your iStuff (we'll have help lines on our site), and a photo ID that matches your registration name and address. And Bobby, make sure your ID says, "Robert F. Kennedy JUNIOR" - or your vote is toast.

7. Make the Democracy Demand: No Vote Left Behind!

I have this crazy fantasy in my head. In it, an election is stolen and the guy who's wrongly declared the loser stands up in front of the White House and says three magic words: "Count the votes." You can have all the paper ballots in the world, but if you don't demand to look at them, publicly, in a recount, you might as well mark them with invisible ink.

Democracy requires vigilance The Day After. That's when you check in at BallotBandits.org one more time.

Who are these masked men? Who are the Ballot Bandits?

Find out: Get your own copy of Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps, including the comic book by Ted Rall. This guide is published by the not-for-profit non-partisan Palast Investigative Fund.

To get updates - and to download the movie, Billionaires & Ballot Bandits to go BallotBandits.org and join the fight on facebook/GregPalastInvestigates

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FOCUS | Boss Rove Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=20387"><span class="small">Craig Unger, Vanity Fair</span></a>   
Tuesday, 07 August 2012 13:33

Unger writes: "Not long ago, Karl Rove seemed toxic: the brains of a disastrous presidency, tarred by scandal. But in Rove's long game, 2012 may be just the beginning."

Karl Rove has worked on Mitt Romney's campaign strategy. (photo: Fred Prouser/Reuters)
Karl Rove has worked on Mitt Romney's campaign strategy. (photo: Fred Prouser/Reuters)



Boss Rove

By Craig Unger, Vanity Fair

07 August 12

 

Not long ago, Karl Rove seemed toxic: the brains of a disastrous presidency, tarred by scandal. Today, as the mastermind of a billion-dollar war chest-and with surrogates in place in the Romney campaign-he's the de facto leader of the Republican Party. But in Rove's long game, 2012 may be just the beginning.

n Wednesday, April 21, 2010, about two dozen Republican power brokers gathered at Karl Rove's Federal-style town house on Weaver Terrace in northwest Washington, D.C., to strategize about the fall midterm elections.

Rove, then 59, had hosted this kind of event many times before. Six years earlier, he'd held weekly breakfasts for high-level G.O.P. operatives to plan for the 2004 fall elections. Back then, as senior adviser to President George W. Bush, Rove oversaw Bush's re-election campaign. More important, he was attempting to implement a master plan to build a permanent majority through which Republicans would maintain a stranglehold on all three branches of government for the foreseeable future. This was not simply about winning elections. It represented a far more grandiose vision-the forging of a historic re-alignment of America's political landscape, the transformation of America into effectively a one-party state.

But now Rove was no longer in the White House. He had been one of the most powerful unelected officials in the United States, but, to many Republicans, his greatest achievement-engineering the presidency of George W. Bush-had become an ugly stain on the party's reputation.

After the two biggest political scandals of the decade, the Valerie Plame affair and the outcry following the firing of nine U.S. attorneys, Rove resigned in 2007 under a cloud of suspicion, barely escaping indictment. His longtime patron then left the White House with the lowest approval rating in the history of the presidency-22 percent. And in 2008 the Democrats had vaporized Rove's dreams by winning the ultimate political trifecta-the House, the Senate, and the White House. Finally, on the right, there was the insurgent Tea Party, to which he personified the free-spending Bush era and the Republican Party's Establishment past, not its future.

But Rove had an incredibly powerful ally. It could be fairly said that no other political strategist in history was so deeply indebted to the United States Supreme Court. In December 2000, in Bush v. Gore, one of the most notorious decisions in its history, by a five-to-four vote, the Court effectively resolved the 2000 United States presidential election in favor of Rove's most famous client, George W. Bush. Then, on January 21, 2010, three months before his luncheon, the Supreme Court once again provided the answer to Karl Rove's prayers, this time in the form of Citizens United v. Federal Election Commission.

The Court ruled in a five-to-four decision that the First Amendment prohibits the government from limiting spending for political purposes by corporations and unions and effectively granted corporations and unions the same free-speech rights enjoyed by individual citizens. The first decision legitimized Rove's power during the two terms of George W. Bush. The second one allowed Rove to re-establish his power and gave a new life to his vision of creating a “permanent Republican majority.”

he implications of the Citizens United decision were staggering. In the 2008 election cycle, non-campaign organizations of all types-whether they were for-profit corporations, nonprofit groups, or unions-had been prohibited from running broadcast, cable, or satellite communications or advertisements that mentioned a candidate within 60 days of a general election or 30 days of a primary. To be sure, there were many ways for wealthy individuals or corporations to funnel money to political-action committees. But the 2002 Bipartisan Campaign Reform Act, better known as the McCain-Feingold Act, specifically prohibited corporations (including non-profits) and unions from engaging in “electioneering communications” intended to influence the outcome of an election. As a case in point, Citizens United, a conservative nonprofit group, produced Hillary: The Movie, a film critical of then senator Hillary Clinton, but had been prevented by the courts from promoting it on television or airing it during the 2008 election season. Citizens United appealed all the way to the United States Supreme Court-and won.

The gist of the decision could be boiled down to two words: Anything goes. Corporations were people, too. And just as John Q. Public could say anything he liked about politics, thanks to an extraordinarily broad interpretation of the meaning of “freedom of speech,” come election-time, so too could Wall Street, Big Oil, pharmaceutical companies, the tobacco industry, and billionaire cranks flood the airwaves with thousands of political commercials.

In the immediate aftermath of the ruling, thousands of articles were written calling Citizens United a truly historic development in the American electoral process, but one voice was conspicuous by its absence. Karl Rove did not mention the subject in his Wall Street Journal columns. Karl Rove did not mention it during his appearances on Fox News. In fact, not a word from Karl Rove on the subject was to be found in any major media. This, despite the fact that he was indisputably a leading expert on the subject and that three out of the five conservative justices voting in the majority-Clarence Thomas, John Roberts, and Samuel Alito-had been given lifetime appointments by his patrons, George H. W. and George W. Bush, and, most important, despite the fact that he would become arguably the single greatest beneficiary of the ruling.

nd so, as a result of Citizens United, the super-pac was born. A new kind of political-action committee, called an “independent expenditure-only committee” in federal election code and super-pac everywhere else, super-pacs suddenly provided a medium through which unlimited sums could be raised from corporations and unions as well as wealthy individuals, and be spent with the express purpose of electing or defeating a specific candidate. As long as the new super-pacs did not coordinate their efforts with the candidates themselves-a somewhat muddy and dubious constraint-they could now pour unlimited money into the election. (Under an earlier decision, the 1976 Buckley v. Valeo ruling, the Supreme Court had already struck down certain limitations on expenditures by individuals.)

With his keen eye for strategy and his ties to disaffected millionaires in the G.O.P. establishment, Rove was the first to seize the initiative. He immediately met with Ed Gillespie, the former Republican National Committee chair who had also served in the Bush administration. The two men were a potent duo. “Ed's got the better rap and Karl's got the better Rolodex,” a Republican lobbyist told the National Journal. Within three weeks of the Supreme Court decision, American Crossroads, a new 527 advocacy group, had registered its Web site. Rove's exact relationship to the group was informal and was described by Politico as providing “a laying-on of hands” to encourage wealthy Republican donors. He and Gillespie took off for Texas to meet with Rove's wealthy political donors, the money machine that had served him for more than 25 years, and came away with a major pledge from Dallas billionaire Harold Simmons, a longtime donor to Rove's causes. Crossroads GPS, a sister group, was in the works under almost identical leadership. Thanks to its nonprofit status, it would not have to disclose the identity of its contributors.

In short order, American Crossroads had obtained commitments of about $30 million-nearly four times what the R.N.C. had in its coffers.

Meanwhile, Rove and Gillespie put Crossroads in a network with four other groups-the American Action Network, the American Action Forum, Resurgent Republic, and the Republican State Leadership Committee-as part of an immense fund-raising and advertising machine, separate from the Republican National Committee, to win back both Congress and the White House. Altogether, according to the National Journal, American Crossroads and Crossroads GPS planned to spend $300 million to help scores of G.O.P. congressional candidates, especially in battleground states such as Florida, Colorado, Nevada, Ohio, and Pennsylvania. That was enough money to produce anti-Democratic attack ads that could run thousands of times, and to produce tens of millions of negative mail pieces and automated phone calls. Under the new laws, all of this could take place with virtually no oversight. It was implicit that the 2010 midterms were merely a dress rehearsal for the larger political goal of the 2012 presidential election, in which these same men would try to topple President Obama with a war chest that now approaches $1 billion. By contrast, John McCain spent $370 million on his entire presidential campaign.

Rove and Gillespie pitched American Crossroads as an analogue to opposing groups such as Democracy Alliance or labor unions, which had historically supported Democrats. "Where they have a chess piece on the board, we need a chess piece on the board," said Gillespie, who has been involved in all five groups in roles ranging from board member to informal adviser.

But in fact, much more than that, American Crossroads was an alternative to the R.N.C., which had crumbled under the leadership of Michael Steele, who would leave the committee a few months after the 2010 midterms. "Karl set up a parallel organization," says longtime G.O.P. political strategist Roger Stone. "The center of energy will always be where the money is. Karl is playing for control of the party. That's where the power and the money is."

WABC Radio talk-show host John Batchelor, a Republican, put it in perspective. "America is a two-party state," he says. "There are the Democrats. Then, there's Karl Rove."

As the November 2, 2010, elections approached, Karl Rove had nearly completed a remarkable transformation. His political apparatus was fully funded and operational. His relationships with Fox News and The Wall Street Journal gave him a bully pulpit that allowed him to offer his own Rovian narrative at the same time as he manipulated events behind the scenes. Even Rove's most astute observers, with few exceptions, had made one crucial miscalculation: given Rove's close relationship with George W. Bush, they had assumed Rove's mission to achieve a permanent Republican majority was a goal that had to be accomplished during the two George W. Bush terms. But he had always played the long game. Now America would find out if Karl Christian Rove could pull it off.

The Buyout

all and slender at 65, Mitt Romney has always looked presidential. With his chiseled jaw and helmet of charcoal hair flecked with gray, he is almost Reaganesque but has a stiffness in his bearing-an inescapable sense of detachment, the absence of the common touch.

Indeed, the Romney critique that stung most, especially in the context of high unemployment, was Mike Huckabee's 2008 quip that, far from being the common man, Romney looks like "the guy who laid you off." All of which raised questions about Romney's wealth, how he earned it, and how that would play with the American electorate.

At Bain Capital, the Boston-based private-equity firm where he made his name, Romney had mastered the art of the leveraged buyout: making an offer for a company, putting down a fraction of the sale price, financing the rest, taking over the company, and then, after the company turned around, cashing out-often at a huge profit. His success was undeniable. Romney had done it again and again-with a medical-equipment company, with a credit-services company, with Domino's Pizza. There were firms that succeeded as well as those that failed, costing workers their jobs while Bain took the profits. He had even saved his former consulting firm, Bain & Company, from bankruptcy. Over the years, he earned a personal fortune of more than $200 million. Given the sputtering state of the economy, the question was whether Romney would be seen as someone whose fiscal prowess could cure America's economic ills. Or would he be seen as a remorseless corporate raider who took home millions while rapaciously cutting jobs?

Then, in the spring of 2012, after Super Tuesday, as the focus of his campaign shifted from his G.O.P. challengers to beating President Obama in November, Mitt Romney unwittingly became involved in what was likely his last leveraged buyout. This time around, the money put down-about $1 billion-was huge and the stakes were astronomically high. This was a highly leveraged buyout in which the targeted acquisition would end up overseeing an annual budget of several trillion dollars. The parties involved were unusual as well. The buyer was the Republican establishment, led by Karl Rove. The deal was to be funded by the super-pacs Rove had created. The final twist: the acquisition was Mitt Romney himself.

Unlike a normal buyout, there was no formal signing of documents. But on April 5, Ed Gillespie left American Crossroads and joined the Romney campaign as a senior adviser. Technically, Romney had not yet locked up the nomination, but, as Politico reported, Gillespie would serve as a strategist "without portfolio to the likely GOP presidential nominee, offering counsel on planning for the Tampa convention, the candidate's message and a general election strategy for a campaign."

Romney's training and experience as a businessman lent itself to the idea of politics as being merely a question of solving managerial problems, of finding the right business plan and the right personnel. By doing so, he was acquiring funding for a presidential campaign, a strategic plan to win the White House, and an experienced management team to implement it. "I am pleased that Ed is joining my team," Romney said in a statement. "He brings a wealth of experience that will prove invaluable in the political battle that lies ahead. Barack Obama is building a $1 billion campaign war machine, and Ed will play an important role in countering it."

hat was unsaid, however, was more important. Gillespie had been Rove's trusted ally for years-at the R.N.C., on George W. Bush's campaigns, in the Bush White House, and, most recently, as Rove's partner in forming American Crossroads. Gillespie would not have made the move unless the nomination was in the bag. All of which meant that, through Gillespie, Rove now had strategic oversight of Romney's campaign.

Rove was replicating what he had done in Texas in the 80s and 90s; there he'd started out with political-action committees through which he could obviate the party structure. "He had a lot of influence over the money," recalled Wayne Slater, who covered Rove for The Dallas Morning News and co-wrote three books on him. "Over who would contribute to whom. So he became the gatekeeper. When Karl put his imprimatur on you, it was clear that the money was going to go to you."

Now Rove was attempting to do the same thing at the highest level of all, in the battle for the presidency of the United States.

he only way Romney can get back into the race quickly will be through the expenditure of substantial Super PAC dollars," political strategist Doug Schoen wrote in Forbes, explaining how Romney's weakness rendered him a tempting takeover target. "Specifically, the key actors in this process will be Karl Rove, whose Super PAC American Crossroads has raised $200 million, as well as the pro-Romney Super PAC, Restore Our Future But make no mistake about it-the 2012 campaign now is not Obama vs. Romney. It is Obama vs. Karl Rove, American Crossroads, and Restore Our Future."

Officially, in joining Romney, Gillespie had cut ties with American Crossroads because of restrictions prohibiting "coordination" between super-pacs and specific candidates. "Super-pacs have to be entirely separate from a campaign and a candidate," Romney said. "I'm not allowed to communicate with a super-pac in any way, shape, or form. If we coordinate in any way whatsoever, we go to the Big House."

But in reality, such constraints are literally a joke-fodder for satirists Jon Stewart and Stephen Colbert, who set up their own super-pac to call attention to a "loopchasm" in the law, namely, that candidates could speak out as citizens publicly-on television, on the Internet, in the press-and make their needs and desires known. "I can't tell you," Colbert explained to Stewart, "but I can tell everyone through television. And if you happen to be watching, well, I can't prevent that, Jon."

And so the great consolidation began between Rove's super-pacs and Romney's operation. When the Republican primaries had been unresolved, talent and money had been divided among the many disparate G.O.P. contenders; now it would all serve the same end of electing Mitt Romney as president and helping other Republicans take over the Senate and retain the House.

Meanwhile, more of Rove's surrogates took over the command posts of the Romney operation to ensure professional management of the campaign. Some key pieces of the puzzle were already in place. Romney's chief of staff when he was governor of Massachusetts and his campaign manager for his 2008 presidential bid, Beth Myers, was so close to her boss that The Washington Post deemed her his "office wife." She had also been a loyal protégée of Rove's when the two of them worked on the Reagan-Bush campaign in Texas in 1980.

"She and Karl still remain friends," Doug Gross, who was Romney's campaign chairman in Iowa in 2000, told Reuters. "Karl has been through these wars and can provide her with sound advice." On April 16, Romney announced that Myers would be in charge of the selection process to choose his running mate.

Another powerful but low-profile figure was Carl Forti, a Rove acolyte who had been Romney's political director in 2008 and now occupied key positions in both American Crossroads and Restore Our Future. Having managed an $80 million budget for the National Republican Congressional Committee in 2006, at the time the G.O.P.'s largest-ever independent-expenditure campaign, Forti had the ideal credentials for the post-Citizens United era, in which super-pacs play an even bigger role than the party itself.

Operating very much under the radar, Forti, known as "Karl Rove's Karl Rove," was "a strategic political warrior," as G.O.P. operative Bradley Blakeman told Politico, whose knowledge of issues, polling, and how to implement complicated strategies made him "the Alexander the Great of the Republican independent-expenditure world."

Stuart Stevens, a veteran media consultant who had worked with Rove on George W. Bush's campaigns, had taken over the job of chief strategist for Romney. And former Mississippi governor Haley Barbour, Stevens's longtime friend and an immensely powerful former head of the R.N.C., joined with American Crossroads in September 2011. Representative Tom Cole, a former R.N.C. chief of staff, described Barbour as "without peer when he is raising money." His presence ensured a substantial and positive impact on the bottom line. Meanwhile, in the spring of 2012, Barbour's nephew, Austin Barbour, moved from Mississippi to Boston to become Stevens's deputy.

The Team of Rivals

protracted battle against Rick Santorum and Newt Gingrich during the primaries had left Romney significantly behind Barack Obama both in fund-raising and in building ground operations in key battleground states. Now, with Rove's colleagues in place, they began to steward a disparate group of multi-millionaires, billionaires, and super-pacs, many of which had recently backed insurgent Republican candidates, into tight ranks behind Romney.

On April 10, Foster Friess, the retired investor who had backed Rick Santorum, announced he was supporting Romney. When asked by Politico if he'd be donating to American Crossroads, Friess seemed bewildered by the array of new super-pacs. "I'm not sure if I have already," he replied. "I know that I have contributed to some other groups, but I can't remember which ones. There are so many of them. They're all over the place."

Next came Sheldon Adelson, the seventh-richest man in America with a $24.9 billion fortune, who, along with his family, according to the Las Vegas Sun, had given $21.5 million to a super-pac backing Gingrich. As recently as March, Adelson had expressed reservations about Romney. "He's not the bold decision-maker like Newt Gingrich is. Every time I talk to him, he says, 'Well, let me think about it,'" Adelson told JewishJournal.com.

In April, the Sun reported, Adelson was openly expressing "gushing admiration for Karl Rove." "I'm going to give one more small donation-you might not think it's that small-to a SuperPAC," he said. On June 13, that "small" donation was announced: $10 million to Restore Our Future. "He is going to be the Republican Party's 800-pound gorilla in defeating Barack Obama," one of Adelson's friends told CNN.

But the big questions still remained: What about David and Charles Koch, the multi-billionaire brothers responsible for funding much of the Tea Party movement? Would they align with Rove? The Kochs were so powerful that, far from being part of his machine, they had, at times, seemed to be rivals, battling him for the heart of the party. But by early spring, according to Politico, Koch operative Marc Short had begun attending the Weaver Terrace group's gatherings.

Initially, the Koch brothers had reportedly planned to steer roughly $200 million to conservative groups and causes in 2012, but over the spring they had doubled their 2012 fund-raising target to nearly $400 million, and, according to a report by Peter Stone in the Huffington Post, they strategized about how to put it all together by inviting a few dozen wealthy conservatives to a conference they organized at the PGA National Resort & Spa in Palm Beach one weekend. Former George W. Bush consultant Mark McKinnon put the $400 million figure in context with a tweet: "Think the $$ political system is screwed up? Koch brothers alone are planning to spend more $$ than McCain's entire 2008 presidential budget."

The new strategy the Kochs developed was one that mirrored what Rove had already begun to implement with Crossroads GPS. Rather than funnel everything through their Americans for Prosperity, the Kochs decided to distribute tens of millions of dollars to a diverse network of conservative organizations, including the National Rifle Association, Grover Norquist's Americans for Tax Reform, the National Right to Life committee, Ralph Reed's Faith & Freedom Coalition, and the American Future Fund. "By spreading their wealth throughout the conservative ecosystem," wrote Peter Stone, "the Kochs can exploit trusted brands with passionate followings that reach beyond the Tea Party base," while at the same time leaving no fingerprints.

The N.R.A. launched a "Trigger the Vote" campaign to reach millions of gun owners who had not yet registered to vote. Thanks to $30 million in donations, much of it from out of state, Wisconsin governor Scott Walker, a Koch-brothers favorite (although they say they didn't contribute to Walker's campaign directly), outspent Democratic foe Tom Barrett eight to one, and, on June 5, became the first governor in history to win a recall battle. Millions were earmarked for 10 battleground states, especially Florida, Ohio, and Virginia, as well as key Senate races to help the Republicans regain the upper house.

But the Koch brothers were not the only ones on the right to raise their sights, and by the end of May, Rove's super-pac network, along with the Koch brothers and the U.S. Chamber of Commerce, had a new target, according to Politico: $1 billion.

This $1 billion was in addition to funds brought in by the Romney campaign and the Republican National Committee, which intended to raise another $800 million, giving Romney a total of $1.8 billion.

The Game Plan

ove's eyes were on more than simply capturing the White House. He wanted to keep the House of Representatives and win back the Senate as well. As early as November 2011, a full year before the election, Rove's Crossroads GPS group began airing attack ads targeting Democrats across the country: Elizabeth Warren in Massachusetts; Tim Kaine in Virginia; Senator Claire McCaskill in Missouri; Senator Ben Nelson in Nebraska; Senator Jon Tester in Montana. "Instead of focusing on jobs, Elizabeth Warren sides with extreme-left protests," one ad said. "At Occupy Wall Street, protesters attack police, do drugs, and trash public parks!"

Similarly, a U.S. Chamber of Commerce ad campaign against Senator Sherrod Brown of Ohio asked if he was "hiding from his tax-raising, job-killing record" and portrayed the 59-year-old Democrat as looking exceptionally haggard and disheveled thanks to a scraggly beard that was allegedly Photoshopped onto his likeness.

More to the point, thanks to Rove's groups, Senator Brown and Tim Kaine, the former Virginia governor who was running for the Senate, were being outspent by more than three to one. On Kaine's behalf, as of late May, 380 ads had been run; in comparison, Bloomberg Businessweek reported, Crossroads GPS and the Chamber of Commerce had aired 1,980 attack ads against him.

And thanks to his friends at Fox News, when it came to national ads attacking Obama, Rove could get enormous amounts of free extra mileage for his advertising dollar. On April 26, American Crossroads released an ad attacking Obama as a "celebrity president." The next day, according to Media Matters, the progressive watchdog site, Republican strategist Brad Blakeman went on Fox to proclaim the ad a huge success because "Karl has gotten more earned media than the amount he invested in the ad."

But that was largely because Fox News promoted it on no fewer than seven separate news shows in a 24-hour period.

The Citizens United ruling gave Democrats the same latitude to raise money from billionaires, but, thanks to a souring of relations between the White House and big banks, Wall Street had effectively deserted Obama. Moreover, having criticized the Citizens United decision, the Democrats did not have the stomach to play by the new rules by calling on the wealthiest Democrats to meet Rove's challenge.

"The inability of Democrats to play in the same league as Karl Rove financially is a humiliating debacle that might be unprecedented, measured by comparing wealthy donors of one party to wealthy donors of the other, in the history of presidential politics," wrote Brent Budowsky in The Hill. "The president and Democrats seem befuddled by how to react to the Citizens United decision, while Karl Rove understands with crystal clarity. Rove mobilizes his army, rallies his wealthy, organizes his venture and puts his money in the bank."

In contrast, in late spring, the Democratic Party sent an e-mail to its constituents signed by Barack Obama. In the subject line, it said, "Hey." The text read, "I need your help today Please donate $3 or more before midnight Thank you, Barack."

But the response to Obama's entreaty, initially at least, was weak. In 2008, more than 550,000 people gave more than $200 to Obama and in so doing created the longest list of individual donors in American politics. But according to BuzzFeed's Ben Smith and Rebecca Elliott, at the same point in 2012, nearly 90 percent of those people had not come back to donate that amount again.

Likewise, according to Politico, compared with their G.O.P. counterparts, the Democratic super-pacs were feeble. By mid-April, four of the biggest Democratic super-pacs and two allied nonprofits had a mere $8.3 million on hand, thanks in part to $1 million each from the party's two largest contributors to date, comedian Bill Maher and hedge-fund billionaire James H. Simons, while the Republican ad barrage continued apace against congressional Democrats and Obama, especially in the battleground states of Ohio, Pennsylvania, and Virginia. By mid-April, Rove's groups alone had already spent more than $11 million on ads against Obama.

Finally, after months on the sidelines, major liberal donors, led by financier George Soros, put together a strategy of sorts to combat Rove's onslaught, preparing to invest $100 million in Democratic super-pacs and nonprofits by focusing on grassroots organizing, voter registration, and turnout instead of negative advertising.

"Culturally, the left doesn't do Swift Boat," Soros adviser Michael Vachon told the Huffington Post. "It's not what we do well."

The Boss

n late April, Rove's electoral map had forecast an Obama victory, but in his May 24 Wall Street Journal column, "Romney's Roads to the White House," Rove took another look at what might happen on the first Tuesday in November.

Mapping out a "3-2-1" strategy for Romney, Rove itemized what was necessary for Romney to win. All he had to do was take three states-Indiana, North Carolina, and Virginia-that John McCain had narrowly lost in 2008; recapture two big battleground states that Bush had won in 2004, Florida and Ohio; and, finally, win one, just one, additional state in the union, anywhere. It was more than just possible, Rove concluded. Now it was probable. "Mr. Obama long ago lost his chance to duplicate his 2008 performance," he wrote. "He's now forced to fight for states he easily won in 2008. The odds now narrowly favor a Romney win."

A week later, Rove further hinted that an effective line of attack would be to paint Obama as a weak, ineffective leader, especially in terms of the economy, a hostage to events rather than a master of them. "When asked 'Which candidate do you trust to do a better job handling the economy?' Mr. Romney polls as high or higher than Mr. Obama," Rove wrote. "The self-portrait the president has painted is of a weak liberal, buffeted by events. That will make this election more like 1980-when Ronald Reagan defeated an ineffectual Jimmy Carter-than 2004."

There are still three months to go before the election. That's an eternity in politics, of course, and it remains to be seen whether global events will conspire to aid Rove's cause. On June 1, in the wake of weak numbers on the jobs front, and fears of an economic collapse in the Eurozone, the stock market tanked. In response, the Rasmussen tracking poll gave Romney a four-point lead. Five weeks later, on July 10, Rasmussen, which has a history of leaning toward the Republicans, still gave Romney a three-point lead, while Gallup and ABC News/Washington Post called it dead even. The race for the White House was a toss-up.

hatever the outcome of the elections, Rove had come a long way. Just a few years earlier, as a brand in politics, his name had been toxic. He had been the brain behind one of the worst presidents in U.S. history, who had started two horribly costly wars and, having inherited a booming economy, left the nation near economic collapse.

It remains to be seen whether Romney will actually win, and, if so, whether he will be as pliant as Rove hopes. Likewise, it's too early to say whether Rove really will build his permanent Republican majority.

Regardless of the answers, on some level, Rove has already won. Undeniably, he's back. He has re-invented himself. He is not merely Bush's Brain; he's the man who swallowed the Republican Party. As the maestro orchestrating the various super-pacs, he has inspired the wealthiest people on the right to pony up what could amount to $1 billion and has created an unelected position for himself of real enduring power with no term limits.

Rival operatives in the party who loathe him nonetheless evince a grudging respect. "He's playing a very long game," says Roger Stone. "Even if Romney loses, that's good for Karl, because he will still be in control. And there's always Jeb Bush in 2016."

With the Koch brothers and Adelson falling into rank, Rove had consolidated the warring factions within the party. He is in command, having built his shadow R.N.C. into an entity over which he has complete control.

Proving the Yeatsian verities about the best lacking all conviction and the worst being full of passionate intensity, Rove has created a ruthlessly efficient political operation outside of the party structure beholden to no one but himself. Says Roger Stone, "No one else can construct a power center like he can."

Karl Rove has become the ultimate party boss.

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