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Mount Weather, a secret underground government installation located about 50 miles west of Washington, DC (see 1950-1962), maintains a “Civil Crisis Management” program aimed at monitoring and managing civil emergencies, such as resource shortages, labor strikes, and political uprisings. The installation is a key component of the highly classified Continuity of Government (COG) program, which is meant to ensure the survival of the federal government in times of national emergency. “We try to monitor situations and get them before they become emergencies,” says Daniel J. Cronin, assistant director of the Federal Preparedness Agency (FPA), which is responsible for managing parts of the facility and program. As part of the program, Mount Weather collects and stores data regarding military and government installations, communications, transportation, energy and power, food supplies, manufacturing, wholesale and retail services, manpower, medical and educational institutions, sanitary facilities, population, and stockpiles of essential resources. The Progressive reports in 1976, “At the heart of the Civil Crisis Management program are two complicated computer systems called the ‘Contingency Impact Analysis System’ (CIAS) and the ‘Resource Interruption Monitoring System’ (RIMS).” The complex systems apparently interpret crisis situations, predict future outcomes, and provide possible solutions for emergencies. According to a 1974 FPA report obtained by The Progressive, CIAS and RIMS are used in close cooperation with private US companies “to develop a range of standby options, alternative programs… to control the economy in a crisis situation.” The Civil Crisis Management program is put on standby during several national anti-war demonstrations and inner city riots in 1967 and 1968. The program is activated during a 1973 Penn Railroad strike and is put to use again in 1974 when a strike by independent truckers threatens food and fuel shipments. By March 1976, the Civil Crisis Management program is being used on a daily basis to monitor potential emergencies. Senator John Tunney (D-CA) will claim in 1975 that Mount Weather has collected and stored data on at least 100,000 US citizens (see September 9, 1975). [Progressive, 3/1976]

Entity Tags: Federal Preparedness Agency, Mount Weather, John V. Tunney

Timeline Tags: Civil Liberties

The cover of Conway and Siegelman’s book ‘Snapping.’The cover of Conway and Siegelman’s book ‘Snapping.’ [Source: aLibris (.com)]In their book Snapping: America’s Epidemic of Sudden Personality Change, authors Flo Conway and Jim Siegelman write of their recent interviews with several law enforcement officials who dealt with various aspects of the Branch Davidian siege (see 5:00 A.M. - 9:30 A.M. February 28, 1993), the final tragic assault (see April 19, 1993), and the aftermath.
Former Deputy Attorney General Admits FBI Unprepared for Dealing with 'Cult' Behaviors - Former Deputy Attorney General Philip Heymann took his post on April 19, 1993, the day of the assault on the Davidian compound, and managed the Justice Department (DOJ) review of the siege and assault (see October 8, 1993). Heymann acknowledges that the FBI went into the siege unprepared to deal with a “cult,” as many label that particular group of the Branch Davidian sect, an offshoot of the Seventh-day Adventists Church. “The FBI was trained to deal with terrorists,” Heymann tells the authors, “but it wasn’t trained to deal with a religious group with a messianic leader. There was no precedent of the FBI’s handling such a situation and there had been no planning for one.” Heymann says he conducted the DOJ review less to assign blame than to help improve federal authorities’ future responses to situations like the Davidian confrontation, and even less connected situations such as the 1993 World Trade Center bombing (see February 26, 1993). “I wanted to see that we were organized in such a way that, if this situation came up again in any form, including an extreme Islamic fundamentalist group, we could understand how to think about them, how to talk to them, when to put pressure on and when not to put pressure on, all the things that go into negotiations,” Heymann says. He acknowledges that many DOJ and FBI officials are uncomfortable with the idea of cults and with the tactical changes dealing with such groups requires. “I hesitated to use any of those terms,” he says. “We tried to avoid labeling the group as a ‘cult’ suggesting crazies. There was a purposeful attempt to not give the group one label or another. The general understanding was that we were dealing with a, you know, a group that had passionate beliefs, that was extremely suspicious of the government.… We wanted to avoid having to dispute the people who, on the one side, treat groups like this as just another fundamentalist religion and, on the other, regard them as a dangerous form of mind control. I did not want to come down on one side or the other of that debate.” Conway and Siegelman believe that the FBI’s reluctance to deal with the “cult” aspect of the Davidians helped bring about the deaths of the Davidians on the final day of the siege. Heymann admits that many in the FBI and DOJ ignored or downplayed warnings that as a cult, the Davidians were prone to take unreasonable actions, such as hopeless confrontations with authorities and even mass suicide (see February 24-27, 1993, Around 4:00 p.m. February 28, 1993, March 5, 1993, March 7-8, 1993, March 12, 1993, (March 19, 1993), and March 23, 1993), and that some officials denied ever receiving those warnings after the final conflagration. “I think you have to assume that any organization after a result like this is going to try to play down their responsibility, but we ought to have picked that up in our report and I’m disappointed if we weren’t skeptical enough,” he says. He concludes: “I think we’re going to be prepared to confront any obvious illegality done in the name of religion. If someone commits a serious crime, like killing government agents, there’s no doubt that the government will be prepared to use force to make an arrest. But if they haven’t, if it’s a question of whether people have been brainwashed, I think you’ll continue to see the same history we’ve had for the last 20 or 30 years. We don’t really have any way of deciding whether brainwashing is holding someone against one’s will or not, or what to do about it.”
DOJ Assistant - Richard Scruggs, an assistant to the attorney general, worked with Heymann on the DOJ review, assembling the timeline of events of the siege. He recalls: “The AG [Attorney General Janet Reno] started here two weeks into the siege. I arrived two weeks later and, by that time, planning was already well underway to get the people out of the compound. After the fire, I was called in to try to figure out what the hell had happened. We did a thousand interviews. We got every piece of the story from everyone’s perspective.” He discusses the array of evidence and opinions the DOJ received concerning the reaction the Davidians were likely to have to the increasingly harsh and aggressive tactics mounted by the FBI during the siege. “The whole issue of suicide and the psychological makeup of Koresh and his followers was obviously something we looked into,” Scruggs says. “The bureau [FBI] sought dozens of expert opinions and many more were offered. There were literally hundreds of people calling in with advice, not just people off the street but people from recognized institutes and universities. The result was that FBI commanders, both in Waco and in Washington, had so many opinions, ranging from ‘they’ll commit suicide as soon as you make any move at all’ to ‘they’ll never commit suicide,’ that it really allowed them to pick whichever experts confirmed their own point of view. The experts FBI officials judged to be the most accurate were those who said suicide was unlikely, which turned out to be wrong.” Scruggs acknowledges that Reno was not given examples of all the opinions expressed, saying, “She only got the no-suicide opinion.” He insists that Reno was aware of the possibility of suicide, and offers two possible explanations as to why the FBI officials only gave her selected and slanted information (see April 17-18, 1993). “My first impression was that someone made a conscious decision to keep this information away from the AG,” he says. “It certainly looked that way. On the other hand, sometimes these things just happen, one decision leads to another, and nobody really thinks things through. I think the people who were putting together the material truly believed there was a low chance of suicide and then simply picked the materials that confirmed what they wanted to believe.” Scruggs acknowledges that DOJ and FBI officials ignored the warnings given by two FBI “profilers,” Peter Smerick and Mark Young (see March 3-4, 1993, March 7-8, 1993, and March 9, 1993). “Oh yes, absolutely,” he says. “Smerick and Young got wiped out by the on-site commander, who wanted a combination of negotiation and increasing pressure on the compound, the so-called ‘carrot-and-stick’ approach.” Scruggs, unlike Heymann and other government officials, says that the FBI “believes strongly in mind control, believe me.… There was a great debate going on in the bureau whether Koresh was a con man or whether he really thought he was some kind of messiah, but whichever he was there was no doubt that he was effectively controlling the rest of the people. Everybody assumed that.… Everybody believed he did it through some kind of brainwashing or mind control. We scrubbed the report of words like that, but the bureau used them. They fully understood that.” The mistake that was made during the siege was in believing that the increasingly aggressive “psywar” tactics used during the siege, even during the initial hours of the assault itself, was that “by making it very uncomfortable, they could overcome the control Koresh exercised over the rest and get out a large number of the women and children. They even used the phrase ‘the motherhood instinct.’”
Alternatives Considered and Rejected - But the options aside from assaulting the compound were in some ways worse. “The options were minimal. They could have killed Koresh—the Israelis couldn’t understand why he didn’t do that. The HRT had Koresh in their sights 50 times. They could have killed him and all his leaders and that would have been the end of it, but that was not an option. They looked into all kinds of other things. One official had heard rumors that the government had a secret weapon, like a laser weapon or sound weapon, that could vibrate people in some non-lethal way and get them out of there. We didn’t. We found out later there was a microwave weapon, but they couldn’t use it because it affected people differently based on their body size and weight. It didn’t do much to big people but it tended to cook little people.” Scruggs says that there was no “win” in any scenario they considered. “I’m not saying that mistakes weren’t made, because they were,” he says, “but I became firmly convinced in my own mind, after looking at this 16 hours a day for six months, that it was Koresh’s game. He was, in effect, controlling us no less than he was controlling his own people.” Scruggs echoes the words of senior FBI agent Byron Sage, who was present for the siege and the assault, who will say five years later that Koresh “had an apocalyptic end in mind, and he used us to fulfill his own prophecy” (see January 2000). Carl Stern, director of public affairs for the Department of Justice, was present at the decision-making sessions held in Reno’s office, and saw the FBI present its tear-gas assault plan for her approval. Stern, like Reno and others, was new to Washington and to the Davidian situation, and recalls the turmoil of meetings and decisions in the final weekend before the assault on Monday, April 19. “I arrived here on Tuesday and had my first meeting on Waco 15 minutes after I walked in the door,” Stern says. “Two people from the criminal division were advocating the tear gas plan. I took the other position and we argued it in front of the attorney general. The next day I attended a meeting where I really felt the idea had been turned off. I was confident that nothing was going forward (see April 12, 1993). Then on Saturday it got turned around 180 degrees” (see April 17-18, 1993). Stern is still unsure why the opposition to the assault plan disappeared so thoroughly. “The AG [Reno] was there with her deputies, the FBI director [William Sessions] was there with his deputies, and they were going through the whole thing all over again.” Stern summarizes the list of official priorities that weighed in favor of the action. “The FBI was concerned about deteriorating health conditions in the compound. There were dead bodies on the premises. The building had no indoor plumbing. People were defecating in buckets and dumping it in a pit out back and, after 50 days, there was real concern that there would be a massive disease outbreak and the first ones to get sick would be the kids. They were concerned that the perimeter of the compound was highly unstable. It was a large perimeter. There had been several breaches of it. There were rumors that armed pro-Koresh groups might come from Houston or California or elsewhere to put an end to the siege. Finally, the Hostage Rescue Team had been there for 49 days at that point—the longest they had ever gone before was four days. They were in sniper positions around the clock. They were losing their edge, not training, sitting out there in mudholes, and they were afraid if something went wrong in the rest of the country they would not be able to respond.” Stern confirms that one of Reno’s overriding concerns was the reports of child abuse she was receiving. “The AG asked a number of questions and this became the legend of what she was concerned about. She asked first about sanitary conditions. She asked next about sexual assault and child abuse. The FBI replied that if Koresh was still doing what he had been point prior to the raid (see November 3, 1987 and After) he was legally committing statutory rape. Third, the question of beatings came up. As recently as March 21, youngsters had been released who described having been beaten. The consensus was that, at a minimum, the government was not adequately protecting these children, but all that got distorted later.”
Mass Suicide Never Considered an Option for Davidians - Stern also confirms that FBI officials dismissed any idea that the Davidians might commit mass suicide, and that possibility was never figured into the plans for the assault. “What the attorney general heard was the assessment that he was not suicidal,” Stern says. What did figure into the planning was what the authors calls the “tough-cop culture of the FBI, which later evaluators cited as central factors in the proposal by bureau commanders to attack the compound with tear gas.” Stern says, “Remember, four officers had been killed, the FBI had never waited so long in the hostage situation, and from their perspective, it was really untenable that people who had killed federal officers were going on week after week thumbing their noses at law enforcement.”
Assault Did Not Follow Plan - The plans as approved by Reno never contained an option to attack the compound with armored vehicles. “Please keep in mind that there was no plan to demolish the compound. As we said at the time, it was not D-Day. The original plan was a two-day plan for gradual insertion of gas to progressively shrink the usable space and continually encourage people to come out.” The assault was carried out entirely differently; when the Davidians began firing automatic weapons at the armored vehicles and at personnel, ground commanders abandoned the plans and ordered an all-out assault with tear gas and armored vehicles. Even weather conditions played a part in the final conflagration. “No one anticipated the wind,” Stern recalls. “The tanks were not supposed to strike the building, but because of the wind, the gas wasn’t getting in and they had to get closer and finally insert the booms through the window millwork. In the course of doing so, they struck the walls and the roof.” Stern recalls the moments when the fires erupted throughout the compound. “I was in the SIOC [Strategic Intervention Operations Center] when the fire broke out. At first, Floyd Clarke, the FBI’s deputy director, thought an engine had blown on one of the vehicles they had rented from the Army. They didn’t realize what had happened. Then, when it became clear that it was a fire, they all sat there waiting for the people to come out. They were saying, ‘Come on baby, come on out, come on out.’ They were expecting people to come flooding out and there were no people coming out and they were absolutely incredulous. Even when it was over, they were still assuming they would find the kids in the bus they had buried underground.” Stern says FBI and DOJ officials were stunned at the realization that the Davidians had, in essence, committed mass suicide. “All I can tell you is that, given the atmosphere at the time, it was a surprise the suicide occurred. Remember, by then, most of the children in the compound were Koresh’s own. The thought that he would permit his own children to be harmed was inconceivable.” Conway and Siegelman point out that those experienced in “cult” “mind control” techniques had, indeed, anticipated just such an outcome. They theorize “that ranking FBI officers, tired of being manipulated by Koresh and, no doubt, genuinely concerned for the precedents they were setting for future confrontations, may have misguided the attorney general into giving ground commanders too much leeway in the execution of the final assault plan—leeway that, as the tank and tear gas assault progressed, unleashed the full destructive potential of Koresh and the people under his control. However, in our view, that gaping hole in the government’s strategy was not wrought by any battering ram or armored vehicle. Amid the push and pull of the government’s internal debate, the failure of FBI officials in Washington and Waco to heed warning that the cult’s destructive urges would ignite under pressure hastened the demise of the doom-bent Davidians.” The Davidians were never Koresh’s hostages as the FBI viewed them, the authors conclude, but willing participants willing to die for their leader and for their beliefs.
Reno Forced to Rely on FBI - Stern reminds the authors: “The attorney general had only been on the job five weeks. She didn’t even have her own staff yet. She was really flying solo. She had to rely on somebody, so she relied on the FBI and their vaunted Hostage Rescue Team. Those of us who have been around town a little longer know that, while there’s much to admire about the FBI, it does not have an unblemished record. There are times when they have been mistaken. They’re not perfect. In the world of cats and dogs, sometimes they’re closer to dogs than cats. If she had been attorney general for two years and had more experience dealing with the bureau, she might have solicited more information.” [Conway and Siegelman, 1995]

Entity Tags: Flo Conway, David Koresh, Carl Stern, Byron Sage, Branch Davidians, Federal Bureau of Investigation, FBI Hostage Rescue Team, US Department of Justice, Philip Heymann, Mark Young, Jim Siegelman, Richard Scruggs, Janet Reno, Floyd Clarke, Peter Smerick

Timeline Tags: 1993 Branch Davidian Crisis

In its escalating pressure against the besieged Montana Freemen (see March 25, 1996), the FBI shuts off the electricity to the Freemen’s compound. [Billings Gazette, 3/25/2006] The Freemen have at least one generator, so they are not entirely without electricity; it is possible that they could go for months without outside power. If the power shutdown elicts no response, the FBI has other options it can implement, including moving agents incrementally closer to the main buildings, disrupting the Freemen’s satellite feeds and other communications, and even blocking their access to outside food sources such as fish ponds and storage buildings. “In effect, we could shut them off from the world,” says one official, who adds that the steps would be put into effect gradually in the hope that any one of them might lead to negotiations. Officials say any escalation would have to be gradual to ensure that the situation does not escalate out of control. They say they have no plans to raid the compound at this time. FBI Director Louis Freeh is monitoring the standoff very closely, officials say, and has mediated discussions and disputes between his aides and his field commanders. [New York Times, 6/5/1996; Associated Press, 6/10/1996]
Dissenting Viewpoints on Efficacy of Power Shutdown - The next day, retired FBI agent Joe Conley tells PBS news anchor Jim Lehrer that he thinks the power shutdown is “basically going to send a signal. In and of itself, turning off the electricity isn’t going to prompt these people to come directly to the negotiating table, but it is telling them that the FBI is there, law enforcement is there, and law enforcement is not going to go away.” Freelance writer and reporter Lawrence Myers disagrees with Conley about the efficacy of shutting down the Freemen’s power, saying: “They, first of all, don’t recognize the jurisdictional authority of the people who have them surrounded. Second of all, as I recall looking into this, I flew up there last year to talk with these people and look into it, and the fact is that in the late 1980s, the electricity was shut off on the Clark ranch (see September 28, 1995 and After) for three years. Nobody came out. Nobody moved away.” State Senator Charles Duke (R-CO), who has come off a series of frustrating negotiations with the Freemen (see May 15-21, 1996), says while he believes the electricity shutdown will have a “helpful long-term” effect, the Freemen are not a unified whole: “Had it just been up to the Clarks, this would have been over sometime ago, I believe. But what you’ve got there are some destabilizing factors, such as Russ Landers, Dale Jacobi, and Rod Skurdal,” he says, and those men are influencing the others to stay put in defiance of the FBI. “[T]hose are the three main destabilizing factors, and my recommendation to the FBI when I left is that those three somehow be isolated from the remainder of the farm, if necessary by force. And I think the rest of the farm would capitulate. I have seen people who are prepared to die for their beliefs, and these people don’t strike me as that type of person.”
Senator: FBI Showing Admirable Restraint - In a sidebar to the conversation about the power shutdown, Duke tells Lehrer that he admires the FBI’s restraint in handling the Freemen. “I think they have been lenient deliberately,” he says. “That’s really to the FBI’s credit—not to say they will always do this, but they’re at least doing that in this case. I think it’s more going out of their way, even over-correcting, if necessary, in order to make sure that the constitutional rights of these people is observed, and an example of how far the FBI was willing to go is they were willing to step aside if these people on the Clark ranch would simply walk across the cattle guard, the FBI would step aside and let the county sheriff process this, these people or the Montana State Police, or the Montana state legislature.” Myers agrees, noting that Attorney General Janet Reno said if given the chance to redo the FBI siege in Waco, Texas, which resulted in the deaths of almost 80 Branch Davidians (see April 19, 1993), “she’d do a lot of things differently. Well, this is the opportunity to demonstrate what type of patience they’re willing to show with American citizens. I think they’re doing fine so far and I know it’s problematic.… I think [Duke] and I and Mr. Conley can agree, this is a very unique, very difficult, and incredibly complicated negotiating situation here.” [PBS, 6/4/1996]

Entity Tags: Louis J. Freeh, Montana Freemen, Russell Dean Landers, Rodney Owen Skurdal, Lawrence Myers, Jim Lehrer, Dale Jacobi, Charles Duke, Janet Reno, Federal Bureau of Investigation, Joe Conley

Timeline Tags: US Domestic Terrorism

In a Washington Post op-ed, Zalmay Khalilzad calls on the US to deal with the Taliban in Afghanistan. “It is time for the United States to reengage.…The Taliban does not practice the anti-US style of fundamentalism practiced by Iran—it is closer to the Saudi model.” He calls on the US to help the Taliban “put Afghanistan on a path toward peace,” noting that continuing violence “has been a source of regional instability and an obstacle to building pipelines to bring Central Asian oil and gas to Pakistan and the world markets.” [Washington Post, 10/7/1996] However, by 2000, Khalilzad will sour on the Taliban. In a speech in March 2000, he will state, “Afghanistan was and is a possible corridor for the export of oil and gas from the Central Asian states down to Pakistan and to the world. A California company called Unocal was interested in exploring that option, but because of the war in Afghanistan, because of the instability that’s there, those options, or that option at least, has not materialized.” [Los Angeles World Affairs Council, 3/9/2000]

Entity Tags: United States, Taliban, Unocal, Zalmay M. Khalilzad

Timeline Tags: Complete 911 Timeline

’Blackout,’ by John J. Nance.’Blackout,’ by John J. Nance. [Source: Pan Books]Blackout, the new novel by aviation thriller writer John J. Nance, includes scenes which appear to predict aspects of the 9/11 attacks, such as a character suggesting the possibility of a Boeing 747 crashing into the World Trade Center because its pilots have been incapacitated by terrorists. [Nance, 2000, pp. 251, 320, 344-345; Associated Press, 8/24/2003] The novel’s storyline involves its two central characters, FBI agent Kat Bronsky and Washington Post reporter Robert MacCabe, investigating what has caused two American passenger jets to crash. It appears that terrorists are using a special ray gun stolen from the government to kill or blind pilots in midair, resulting in their planes crashing. [Publishers Weekly, 1/31/2000; Los Angeles Times, 4/16/2000]
FBI Agent Fears 747 Hitting WTC - In one scene, Bronsky explains to MacCabe her fear that the terrorists are “going to shoot down another airliner somewhere.” She says: “So who’s next? Are we going to get a seven-forty-seven impacting the World Trade Center in New York because the two pilots were neutralized on takeoff from Newark or Kennedy?” [Nance, 2000, pp. 319-320] Similar to this scenario, in the terrorist attacks on 9/11, the WTC will be hit by two Boeing 767s. [New York Times, 9/11/2001]
Agent Suggests Terrorists Profiting from Insider Trading - In a later scene, Bronsky suggests to MacCabe that the attacks against aircraft may be motivated by financial gain. She says: “How can you make lots of money from seriously undermining the airlines? How about selling their stock short or softening up the industry for financial takeovers?” She suggests the terrorists “may already be getting precisely what they want from collapsing airline market prices.” When asked if stock prices are down as a result of the plane crashes, Bronsky replies: “Big-time. As much as a 10 percent drop. If this continues, they’ll go into free fall.” [Nance, 2000, pp. 344-345] Similar to this scenario, evidence of possible insider trading will surface in the aftermath of 9/11, indicating that some people may have profited from having advance knowledge of the attacks. [CNN, 9/24/2001; 9/11 Commission, 7/24/2004, pp. 499] In the week before 9/11 there will be surges in the volume of put options, which pay off when a stock drops in price, purchased on the stocks of the parent companies of American Airlines and United Airlines, the airlines whose planes are targeted in the attacks (see September 6-10, 2001). [San Francisco Chronicle, 9/29/2001; 9/11 Commission, 7/24/2004, pp. 499] Also, in the month before 9/11 there will be a significant increase in short selling of stocks of those two companies, essentially betting that the value of the stocks will decrease (see Early September 2001). [San Francisco Chronicle, 9/22/2001; CNN, 9/24/2001] On the first day of trading following the attacks, the shares of the two companies will fall by 39 percent and 42 percent. [Associated Press, 9/18/2001]
Terrorist Has Name Similar to Alleged 9/11 Commander - Furthermore, one of the terrorists responsible for causing the plane crashes in Blackout is called “Ben Laren,” a name similar to (Osama) bin Laden, who allegedly orders the 9/11 attacks. [Nance, 2000, pp. 251]
Earlier Novel Described Plane Used as a Weapon - Nance, described by Publishers Weekly as “[a]rguably the king of the modern-day aviation thriller,” is a decorated Air Force pilot and a retired airline captain. He has extensive flying experience, having piloted jet aircraft including Boeing 727s, 737s, and 747s. He is also an internationally recognized analyst on matters of aviation safety and works for ABC News as an aviation consultant. [Publishers Weekly, 1/31/2000; Associated Press, 8/24/2003; ABC News, 1/6/2006] In his 1995 novel Pandora’s Clock, Nance in fact mentioned the possibility of a plane being used as a weapon by terrorists. In that novel, the deputy director of the CIA recalled an American-trained Iranian pilot, who is a member of a terrorist group, who had been caught “preparing to fly a MIG-29 fighter on a low-level suicide mission into Rome. His target had been the Vatican—and the Pope.” [Nance, 1995, pp. 144]

Entity Tags: John J. Nance

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Al Gore giving his concession speech. His running mate, Joe Lieberman, and Gore and Lieberman family members look on.Al Gore giving his concession speech. His running mate, Joe Lieberman, and Gore and Lieberman family members look on. [Source: Authentic History]Vice President Al Gore is out of options after the US Supreme Court halted all Florida recounts (see 9:54 p.m. December 12, 2000). He orders his Florida recount committee to suspend its activities. At 9:00 p.m., Gore, accompanied by his wife Tipper, his vice-presidential running mate Joe Lieberman, and Lieberman’s wife Hadassah, gives a nationally broadcast speech. He tells the nation he accepts George W. Bush as the legitimate 43rd president of the United States. “This is America, and we put country before party,” he tells viewers. For his part, Bush pledges to deliver reconciliation and unity to a divided nation in his acceptance speech, saying “our nation must rise above a house divided.” However, Bush immediately indicates that he will seek to reform Social Security and Medicare, two issues guaranteed to cause division among Americans. [US News and World Report, 12/13/2000; Pittsburgh Post-Gazette, 12/17/2000; Leip, 2008]

Entity Tags: Hadassah Lieberman, Al Gore presidential campaign 2000, George W. Bush, Joseph Lieberman, US Supreme Court, Albert Arnold (“Al”) Gore, Jr., Mary Elizabeth (“Tipper”) Gore

Timeline Tags: 2000 Elections

Insider trading based on advanced knowledge of the 9/11 attacks may have begun on this date, if not earlier. Investigators later discover a large number of put option purchases (a speculation that the stock will go down) that expire on September 30 at the Chicago Board Options Exchange are bought on this date. If exercised, these options would have led to large profits. One analyst later says, “From what I’m hearing, it’s more than coincidence.” [Reuters, 9/20/2001]

Entity Tags: Chicago Board Options Exchange

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Part of the opening page of Gore Vidal’s article about Timothy McVeigh in Vanity Fair.Part of the opening page of Gore Vidal’s article about Timothy McVeigh in Vanity Fair. [Source: Vanity Fair]Vanity Fair publishes a profile of convicted Oklahoma City bomber Timothy McVeigh (see 7:14 a.m. June 11, 2001) by author and pundit Gore Vidal, who attended McVeigh’s execution (see May 6, 2001) and who exchanged letters with McVeigh for three years while he awaited execution. McVeigh invited Vidal to attend his execution as a result of their letter exchange.
Simplistic Portrayal of McVeigh as Lone 'Mad Bomber' - Vidal is convinced that the government orchestrated McVeigh’s conviction (see June 2, 1997) and the media’s portrayal of McVeigh as a lone mad bomber who “wanted to destroy innocent lives for no reason other than a spontaneous joy in evildoing.” Vidal also asserts that, in the government’s story, McVeigh “had no serious accomplices” (see December 23, 1997 and June 4, 1998). Orchestrating the media response was not particularly difficult, he writes, as few in the mainstream press were particularly interested in why McVeigh carried out the bombing aside from the simple explanation that he was “evil incarnate.” Any explanation of more complexity, Vidal writes, was dismissed as wild conspiracy theories. It was predictable, Vidal writes, that evidence pertinent to McVeigh’s case was not provided until well after his conviction and sentencing (see May 10-11, 2001), and that it would be largely ignored (see June 1-7, 2001). Vidal recounts numerous instances where, when he began to attempt an explanation of McVeigh’s obsession with the 1993 Branch Davidian conflagration (see April 19, 1993) and his belief that he was at war with the US government on a variety of news broadcasts, he was cut short by the hosts.
'Counter-Attack' against US Government - According to Vidal, McVeigh was clear in his letters that the bombing was more than just, McVeigh wrote, “a simple act of ‘revenge’ for Waco,” but “a strike against the US government,” or more precisely, “a ‘counter-attack’ rather than a self-declared war.” In one letter, he quoted pundit H.L. Mencken as writing, “Every normal man must be temped at times to spit on his hands, hoist the black flag, and begin slitting throats.” Vidal recalls that he warned McVeigh that “Mencken often resorted to Swiftian hyperbole and was not to be taken too literally.” He then speculates on the “interesting possibility,” perhaps “the grandest conspiracy of all… that he neither made nor set off the bomb outside the Murrah Building: it was only later, when facing either death or life imprisonment, that he saw to it that would be given sole credit for hoisting the black flag and slitting throats, to the rising fury of various ‘militias’ across the land who are currently outraged that he is getting sole credit for a revolutionary act organized, some say, by many others. At the end, if this scenario is correct, he and the detested Feds were of a single mind.” Regardless of who carried out the bombing, Vidal writes, it is clear that “McVeigh himself was eager to commit what he called ‘federally assisted suicide.’” Vidal quotes an interview with Dr. John Smith, a psychiatrist who interviewed McVeigh in prison and was then released from his oath of confidentiality by McVeigh to discuss his findings with reporters, who concluded that McVeigh was quite sane, and carried out the bombing both in revenge for the Waco assault and because “he also wanted to make a political statement about the role of the federal government and protest the use of force against the citizens.” Smith found that McVeigh was disappointed that the media had refused to discuss what he considered “the misuse of power by the federal government” that impelled him to carry out the bombing.
Limited Contact with Militias - According to Smith, McVeigh told him, “I did not expect a revolution.” He had had numerous discussions with some of the militia groups around Kingman, Arizona, Smith said, about how easy it would be to “cut Interstate 40 in two” and thereby disrupt the transportation between the eastern and western portions of the country, but those discussions, McVeigh told Smith, were “rather grandiose” and never acted upon. Vidal acknowledges that for three years before the bombing, McVeigh lived in the semi-underground world of the American militia movement. During that time, he came to believe, as many militia members did at the time, that the federal government planned on following up its assault weapons ban (see September 13, 1994) with a massive, nationwide raid on gun owners and militia members in the spring of 1995. Vidal writes, “This was all the trigger that McVeigh needed for what he would do—shuffled the deck, as it were.” Vidal claims that McVeigh, unlike many militia members, had “no hang-ups about blacks, Jews, and all the other enemies of the various ‘Aryan’ white nations to be found in the Patriots’ ranks.” He was fascinated with the violently racist novel The Turner Diaries (see 1978) and 1987-1988), he acknowledges, but only for its themes of individual Americans using guns and explosives to overthrow “the System.” Smith bolstered Vidal’s contention by reporting that McVeigh had insisted to him that he was not a racist nor a homophobe—“he made that very clear.”
Rationale for Bombing, and for Killing Civilians, Children - Vidal quotes a 1998 essay McVeigh wrote for the right-wing publication Media Bypass, “Essay on Hypocrisy,” that addressed his choice to blow up the Murrah Building, which contained a daycare center. The US, he wrote, set the precedent for bombing and killing civilians. When US military forces attack Iraqi government buildings with daycare centers or schools in them, McVeigh wrote, the media reported the children were being used as “shields” by the Iraqis. Vidal claims that no evidence exists that proves McVeigh knew about the presence of children in the Murrah Building, and repeats McVeigh’s claims that he had no such foreknowledge. However, Vidal notes, the FBI knew about the children in the Branch Davidian compound, “and managed to kill 27 of them.” In a final set of longhand notes McVeigh sent to Vidal in the weeks before his execution, McVeigh wrote: “I explain herein why I bombed the Murrah Federal Building in Oklahoma City. I explain this not for publicity, nor seeking to win an argument of right or wrong, I explain so that the record is clear as to my thinking and motivations in bombing a government installation. I chose to bomb a Federal Building because such an action served more purposes than other options. Foremost, the bombing was a retaliatory strike: a counter-attack, for the cumulative raids (and subsequent violence and damage) that federal agents had participated in over the preceding years (including, but not limited to, Waco). From the formation of such units as the FBI’s ‘Hostage Rescue’ and other assault teams amongst federal agencies during the 80s, culminating in the Waco incident, federal actions grew increasingly militaristic and violent, to the point where at Waco, our government—like the Chinese—was deploying tanks against its own citizens.” The federal government has militarized the police, he wrote, and his bombing was designed as a “pre-emptive (or pro-active) strike against those forces and their command and control centers within the federal building. When an aggressor force continually launches attacks from a particular base of operations, it is sound military strategy to take the flight to the enemy. Additionally, borrowing a page from US foreign policy, I decided to send a message to a government that was becoming increasingly hostile, by bombing a government building and the government employees within that building who represent that government. Bombing the Murrah Federal Building was morally and strategically equivalent to the US hitting a government building in Serbia, Iraq, or other nations. Based on observations of the policies of my own government, I viewed this action as an acceptable option. From this perspective what occurred in Oklahoma City was no different than what Americans rain on the heads of others all the time, and, subsequently, my mindset was and is one of clinical detachment. (The bombing of the Murrah Building was not personal no more than when Air Force, Army, Navy, or Marine personnel bomb or launch cruise missiles against (foreign) government installations and their personnel.)”
'Exaggerated Sense of Justice' - Vidal has previously written that McVeigh suffered from what he called “an exaggerated sense of justice,” outraging many who read his words. He defends that characterization, and writes, “I knew that few Americans seriously believe that anyone is capable of doing anything except out of personal self-interest, while anyone who deliberately risks—and gives—his life to alert his fellow citizens to an onerous government is truly crazy.” McVeigh’s act may not have sparked a rebellion, Vidal writes, but it did presage an explosion of sorts in the number of citizens identifying themselves with the militia movement, many of whom joined local militia groups because they believed the government had orchestrated the bombing and then unjustly blamed McVeigh for it. Others believe that government agents planted bombs inside the Murrah Building set to go off when McVeigh’s truck bomb detonated. Many believe that McVeigh was used by the government to perpetuate “state police power,” similar to instances during the Vietnam War when “bogus Viet Cong units that were sent out to rape and murder Vietnamese to discredit the National Liberation Front,” or when US forces pretended to “find” Communist arms dumps in El Salvador. Vidal repeats the tale that all 17 members of the US Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) working in their Murrah Building office suspiciously failed to report to work on the day of the bombing, suggesting that they knew of the bombing in advance (see December 30, 1998).
Militia Involvement? - Vidal then engages in a long and detailed attack on the evidence that shows McVeigh and his co-conspirator Terry Nichols built the bomb themselves. He believes that McVeigh and Nichols were involved in a complex and shadowy “plot involving militia types and government infiltrators—who knows?—as prime movers to create panic in order to get” President Clinton to enact the Anti-Terrorism Act, and cites research by journalist and author Joel Dyer, who in his own writings detailed his belief that the government downplayed McVeigh’s militia affiliations to make a case that he was a quintessential and possibly deranged “lone bomber.” Dyer and Vidal both cite the poor defense put on by McVeigh’s trial lawyer, Stephen Jones, who, Dyer contended, “often left the jury more confused and bored than convinced of his client’s innocence. Even when he succeeded in his attempts to demonstrate that a large conspiracy was behind the bombing, he did little to show that McVeigh was not at the center of the conspiracy. Jones’s case led some reporters to speculate that McVeigh himself was limiting his own defense in order to prevent evidence that might implicate others in the bombing from entering the record.” McVeigh did indeed confess to the bombing to his defense lawyers and, later, to Vidal, but, Vidal writes, “I believe that by confessing McVeigh was, once again, playing the soldier, attempting to protect his co-conspirators.” Vidal writes that his own research has unearthed a number of militia members who may have played a part in the April 19 bombing, and a systematic effort by the FBI and the McVeigh prosecution team to quash any evidence of that sort during McVeigh’s trial. He also challenges the government’s assertion that the reports of a third co-conspirator, “John Doe No. 2,” was a US Army private with no connection to McVeigh or the bombing (see January 29, 1997). Instead, he writes, that person was likely a well-known militia member in Shawnee County, Kansas, and possibly a member of the separatist Republic of Texas organization. He cites a book on the bombing by former journalist David Hoffman, who was convicted of trying to tamper with the McVeigh jury (see December 30, 1998), as being “the most thorough of a dozen or two accounts of what did and did not happen on that day in April.” Like Vidal, Hoffman does not believe that McVeigh’s truck bomb could have caused the damage inflicted on the Murrah Building, and cites a number of military and government experts who make the same contentions, even citing one report that claims the “five separate bombs” used in the explosion “have a Middle Eastern ‘signature,’ pointing to either Iraqi or Syrian involvement” (see 10:00 a.m. April 19, 1995 and After). Vidal notes that the search for bodies in the destroyed building was halted after 16 days (see May 4, 1995), against the wishes of those who wanted to continue attempting to search for more evidence in the bomb site. Six days later the building was demolished (see 7:01 a.m. May 23, 1995), leading one critic, retired Air Force Brigadier General Benton K. Partin, to declare that the building was demolished as “a classic cover-up” executed by Communist agents. Vidal writes of Partin’s belief that Communists orchestrated the cover-up, “Well, nobody’s perfect.” (Vidal errs in his “six day” claim; the building was demolished 19 days later.) Vidal writes: “In the end, McVeigh, already condemned to death, decided to take full credit for the bombing. Was he being a good professional soldier, covering up for others? Or did he, perhaps, now see himself in a historic role with his own private Harper’s Ferry, and though his ashes molder in the grave, his spirit is marching on? We may know—one day.” [Vanity Fair, 9/2001]

Entity Tags: Joel Dyer, David Hoffman, Benton K. Partin, Federal Bureau of Investigation, H.L. Mencken, Timothy James McVeigh, Gore Vidal, Stephen Jones, Terry Lynn Nichols, Vanity Fair, John Smith, Murrah Federal Building

Timeline Tags: US Domestic Terrorism

The Chicago Board Options Exchange sees suspicious trading on Merrill Lynch and Morgan Stanley, two of the largest WTC tenants. In the first week of September, an average of 27 put option contracts in its shares are bought each day. Then the total for the three days before the attacks is 2,157. Merrill Lynch, another WTC tenant, see 12,215 put options bought between September 7-10, when the previous days had seen averages of 252 contracts a day. [Independent, 10/14/2001] Dylan Ratigan of Bloomberg Business News, speaking of the trading on Morgan Stanley and other companies, says, “This would be one of the most extraordinary coincidences in the history of mankind if it was a coincidence.” [ABC News, 9/20/2001]

Entity Tags: Morgan Stanley, World Trade Center, Dylan Ratigan, American Airlines, Chicago Board Options Exchange

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Mayo Shattuck III resigns, effective immediately, as head of the Alex Brown unit of Deutsche Bank. No reason is given. Some speculate later that this could have to do with the role of Deutsche Bank in the pre-9/11 purchases of put options on the stock of companies most affected by 9/11. Deutsche Bank is also one of the four banks most used by the bin Laden family. [New York Times, 9/15/2001; Wall Street Journal, 9/27/2001]

Entity Tags: Osama bin Laden, Deutsche Bank, Mayo Shattuck III

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Less than two weeks after 9/11, White House counsel Alberto Gonzales sets up an interagency group to design a strategy for prosecuting terrorists, and specifically asks it to suggest military commissions as one viable option for prosecution of suspected terrorists.
Membership - The initial participants include Gonzales; White House lawyer Timothy Flanigan; Pentagon general counsel William Haynes; the vice president’s chief counsel, David Addington; National Security Council lawyer John Bellinger; and State Department lawyer Pierre-Richard Prosper, a former career prosecutor who now serves as State’s ambassador at large for war crimes issues and who will head the group.
Various Options - The group spends a month in a windowless conference room at State, bringing in experts from around the government, including military lawyers and Justice Department lawyers. The Justice Department advocates regular trials in civilian courts, such as the trials of the 1993 World Trade Center bombers (see February 26, 1993). However, many in the group object, noting that terrorist trials in regular courthouses on US soil pose security risks. The military lawyers propose courts-martial, which can take place anywhere in the world and would have military protection. A third option, military commissions, would offer the security of courts-martial without the established rules of evidence and procedure courts-martial have; setting up such a system might offer more flexibility in trying suspected terrorists, but many in the group wonder if President Bush would require Congressional authorization. Prosper will later recall, “We were going to go after the people responsible for the attacks, and the operating assumption was that we would capture a significant number of al-Qaeda operatives.” In addition to the use of military commissions, the group begins to work out three other options: ordinary criminal trials, military courts-martial, and tribunals with a mixed membership of civilians and military personnel. The option of a criminal trial by an ordinary federal court is quickly brushed aside for logistical reasons, according to Prosper. “The towers were still smoking, literally. I remember asking: Can the federal courts in New York handle this? It wasn’t a legal question so much as it was logistical. You had 300 al-Qaeda members, potentially. And did we want to put the judges and juries in harm’s way?” Despite the interagency group’s willingness to study the option of military commissions, lawyers at the White House, according to reporter Tim Golden, grow impatient with the group. Some of its members are seen to have “cold feet.” [New York Times, 10/24/2004; Savage, 2007, pp. 135]
Parallel Process at White House - Unbeknownst to Prosper’s group, the White House is crafting its own version of military commissions or tribunals (see Late October 2001). When President Bush issues his executive order creating military tribunals (see November 13, 2001), Prosper and his group will first learn about it by watching the nightly news. [Savage, 2007, pp. 138]

Entity Tags: US Department of Justice, US Department of State, William J. Haynes, Timothy E. Flanigan, Pierre-Richard Prosper, John Bellinger, Beth Nolan, Alberto R. Gonzales, Scott McClellan, Jay S. Bybee, John Ashcroft, David S. Addington

Timeline Tags: Torture of US Captives, Civil Liberties

$2.5 million in put options on American Airlines and United Airlines are reported unclaimed. This is likely the result of the suspension in trading on the New York Stock Exchange after the attacks which gave the SEC time to be waiting if the owners showed up to redeem their put options placed the week before the 9/11 attacks. [San Francisco Chronicle, 9/29/2001]

Entity Tags: New York Stock Exchange, American Airlines, United Airlines

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Defense Secretary Donald Rumsfeld warns the House Armed Services Committee of the serious and imminent threat that Saddam Hussein poses to Western countries. He says: “No terrorist state poses a greater and more immediate threat to the security of our people and the stability of the world than the regime of Saddam Hussein.” He adds: “What has not changed is Iraq’s drive to acquire those weapons of mass destruction, and the fact that every approach that the United Nations has taken to stop Iraq’s drive has failed. This is a critical moment for our country and for the world. Our resolve is being put to the test. It is a test unfortunately the world’s free nations have failed before in recent history with unfortunate consequences.” [US Congress, 9/18/2002; Daily Telegraph, 9/19/2002; Agence France-Presse, 9/19/2002] Rumsfeld says of Iraq’s putative nuclear weapons program, “Some have argued that the nuclear threat from Iraq is not imminent—that Saddam [Hussein] is at least 5-7 years away from having nuclear weapons. I would not be so certain…. He has, at this moment, stockpiles of chemical and biological weapons, and is pursuing nuclear weapons.” [Salon, 3/6/2004] The Secretary of Defense also says that Congress must authorize the president to use military force against Iraq before the Security Council votes on the issue. “Delaying a vote in the Congress would send a message that the US may be unprepared to take a stand, just as we are asking the international community to take a stand and as we are cautioning the Iraqi regime to consider its options,” argues Rumsfeld, adding, “Our job today—the president’s, the Congress’ and the United Nations’—is to… anticipate vastly more lethal attacks before they happen and to make the right decision as to whether or not it’s appropriate for this country to take action…. The goal is not inspections, the goal is disarmament.” [US Congress, 9/18/2002; Associated Press, 9/19/2002] He also tries to discredit Iraq’s September 16, 2002 (see September 16, 2002), offer to admit UN inspectors without conditions. He says: “There’s no doubt in my mind but that the inspection program that currently is on the books wouldn’t work because it’s so much weaker than the earlier one. The more inspectors that are in there, the less likely something is going to happen. The longer nothing happens, the more advanced their weapons programs go along.” [US Congress, 9/18/2002] Rumsfeld is drastically revising his own stance from over a year before, when he told an interviewer on February 12, 2001, that Iraq was “probably not a nuclear threat” (see February 12, 2001).

Entity Tags: US Congress, Saddam Hussein, Donald Rumsfeld

Timeline Tags: Events Leading to Iraq Invasion

US President George Bush approves Defense Secretary Donald Rumsfeld’s December request (see December 11, 2002) to give US Strategic Command (STRATCOM) warplanners jurisdiction over the full range of the country’s warfare options, including nuclear weapons. Many senior officials are concerned, according to columnist and reporter William Arkin, “that nuclear weapons—locked away in a Pandora’s box for more than half a century—are being taken out of that lockbox and put on the shelf with everything else.” [Los Angeles Times, 1/26/2003 Sources: Unnamed senior military officials at US Central Command]

Entity Tags: Donald Rumsfeld, George W. Bush

Timeline Tags: US Military

US intelligence has long suspected the Al-Rajhi Bank for supporting radical militant causes. However, the US has not acted overtly against the Saudi bank because it is so large and influential, with an estimated $26 billion in assets and yearly profits of almost $2 billion in 2006. In mid-2003, a new CIA report details linkages between the bank and militants (see Before September 11, 2001), and suggests that the owners of the bank are aware of these links and have an extremist agenda (see Mid-2003). The US begins to rethink the quiet diplomacy approach. Deputies from the CIA, National Security Council, Treasury and State departments meet to discuss the problem. They debate officially listing the bank as a supporter of terrorism. They also consider the possibility of covert operations against the bank, such as interfering with the bank’s internal operations. Another possibility is working with other countries for more scrutiny and regulatory action against the bank. But ultimately, the Bush administration decides against all these options and chooses merely to continue privately exerting pressure on the Saudi government in hopes that the Saudis will do something. [Wall Street Journal, 7/26/2007] In late 2004, Homeland Security Adviser Frances Townsend will make a secret visit to Saudi Arabia to put more pressure on the government to do something about the bank. [Wall Street Journal, 10/1/2004] What the US has done regarding the bank since that time is unknown. The bank denies any ties to Islamic militancy.

Entity Tags: National Security Council, Bush administration (43), Central Intelligence Agency, Frances Townsend, US Department of the Treasury, US Department of State

Timeline Tags: Complete 911 Timeline

Vice President Dick Cheney’s communications director, Cathie Martin, takes notes on “spin options” available to the White House regarding the administration’s admission that its claims of an Iraq-Niger uranium connection are false. Cheney has already rejected a draft of a statement to be released by CIA Director Tenet, taking responsibility for the false claim (see July 11, 2003). On the second page, Martin takes copious notes documenting the administration’s options. The first in the list is to put Cheney on NBC’s Meet the Press to dodge the claim, with annotations as to the pros and cons of that particular effort. The second option is to leak information from the classified National Intelligence Estimate (NIE) on Iraq’s WMD programs (see October 1, 2002) to reporters. Two reporters, the New York Times’s David Sanger and the Washington Post’s Walter Pincus, are mentioned as possible targets of the planned leak. [Office of the Vice President, 7/11/2003 pdf file; National Public Radio, 3/7/2007] In 2007, Martin, will testify as to the strategies discussed by Mary Matalin (see July 10, 2003) and the communications staff (see January 25-29, 2007). One option is to have Cheney go on “Meet the Press;” notes from the strategy discussion cite the pros of going on that show as “best format, we control the message,” but Martin and others fear having Cheney coming across as defensive. Another option is to approach Sanger, whom the notes say is working on “what he thought was a definitive piece, we could go to Sanger and tell him our version of this.” The discussion also cites the Washington Post’s Walter Pincus as a possible leak recipient. Another option is to have either National Security Adviser Condoleezza Rice or Defense Secretary Donald Rumsfeld hold a press conference. Finally, they can have a sympathetic third party write an “independent” op-ed for a national newspaper such as the Post or the New York Times that would promote their message. Martin also speaks with Time’s Matthew Cooper, and informs him that the administration is backing away from its claims that Iraq was attempting to procure uranium from Niger (see 3:09 p.m. July 11, 2003). [Marcy Wheeler, 1/25/2007]

Entity Tags: Matthew Cooper, Donald Rumsfeld, Mary Matalin, David Sanger, Bush administration (43), Catherine (“Cathie”) Martin, Walter Pincus, NBC News, Richard (“Dick”) Cheney, Condoleezza Rice

Timeline Tags: Events Leading to Iraq Invasion, Domestic Propaganda, Niger Uranium and Plame Outing

BearingPoint and Amy Jaffe complete the State Department-commissioned plan for Iraq’s oil industry (see November 2003). The 323-page document, titled Options for Developing a Long Term Sustainable Iraqi Oil Industry, lays out seven possible models for Iraq’s oil industry, none of which is privatization. “The seven options [range] from the Saudi Aramco model, in which the government owns the whole operation from reserves to pipelines, to the Azerbaijan model, in which the state-owned assets are operated almost entirely by ‘OICs’ (International Oil Companies),” Greg Palast reports. The plan seems to favor the production-sharing agreement (PSA) model, in which oil reserves are owned by the state but operated and controlled by foreign oil companies that earn a percentage of oil sales. [Harper's, 4/2005, pp. 75] “Using some form of [production sharing agreements] with a competitive rate of return has proved the most successful way to attract [international oil company] investment to expand oil productive capacity significantly and quickly,” the report says. [United States Agency for International Development, 12/19/2005, pp. 50 pdf file] The document makes it clear that in order to secure sufficient investment, the Iraqi government will have to offer OICs a generous portion of the oil proceeds. “Countries that do not offer risk-adjusted rates of return equal to or above other nations will be unlikely to achieve significant levels of investment, regardless of the richness of their geology,” the plan states flatly. As a case in point, the plan highlights the Azerbaijan system which it notes has “been able to partially overcome their risk profile and attract billions of dollars of investment but offering a contractual balance of commercial interests within the risk contract.” [BBC Newsnight, 3/17/2005; Democracy Now!, 3/21/2005; Harper's, 4/2005, pp. 75; United States Agency for International Development, 12/19/2005 pdf file] Jaffe later explains to reporter Greg Palast that the oil industry prefers state ownership of Iraq’s oil over privatization because it fears a repeat of Russia’s energy privatization, which barred US oil companies from bidding on its reserves. Furthermore, another reason the oil companies oppose the neoconservatives’ privatization scheme is because they have no desire to undermine OPEC as they have no problem with high oil prices. “I’m not sure that if I’m the chair of an American company, and you put me on a lie detector test, I would say high oil prices are bad for me or my company,” she acknowledges to Palast. Similarly, a former Shell oil boss tells Palast that the interests of the neoconservatives, who were calling for total privatization, and the oil companies are “absolutely poles apart.” He says: “Many neoconservatives are people who have certain ideological beliefs about markets, about democracy, about this, that and the other. International oil companies, without exception, are very pragmatic commercial organizations. They don’t have a theology.… They are going to do what is in the best interest of their shareholders.” [Democracy Now!, 3/21/2005; Harper's, 4/2005, pp. 75] The State Department will deny the existence of this oil plan “for months,” according to Palast, who will only obtain it after identifying its title and threatening legal action against the government. [Democracy Now!, 3/21/2005; Harper's, 4/2005, pp. 75]

Entity Tags: Amy Myers Jaffe, BearingPoint

Timeline Tags: Events Leading to Iraq Invasion, Iraq under US Occupation

The 9/11 Commission dismisses allegations of insider trading in the days preceding 9/11, in a footnote contained in its final report. According to the report, the put options for the parent companies of United Airlines were placed by a “US-based institutional investor with no conceivable ties to al-Qaeda as part of a trading strategy that also included buying 115,000 shares of American on September 10.” With respect to the highly suspicious trading in the parent company of American Airlines, the Commission states that many of the trades were “traced to a specific US-based options trading newsletter, faxed to its subscribers on Sunday, September 9, which recommended these trades.” According to the Commission: “The SEC and the FBI, aided by other agencies and the securities industry, devoted enormous resources to investigating this issue, including securing the cooperation of many foreign governments. These investigators have found that the apparently suspicious consistently proved innocuous.” [9/11 Commission, 7/24/2004, pp. 499]

Entity Tags: United Airlines, US Securities and Exchange Commission, 9/11 Commission, American Airlines, Al-Qaeda, Federal Bureau of Investigation

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Bernard Kerik, the former New York City police commissioner, withdraws his name from consideration to become the nation’s next head of the Department of Homeland Security (DHS—see December 3, 2004). Kerik says he found information showing that a woman he had hired as a housekeeper and nanny was an illegal immigrant; DHS oversees the Immigration and Customs Enforcement (ICE) agency. Kerik says that the discovery prompted him to withdraw his name from consideration. In a letter to President Bush, Kerik writes that although it is “the honor of a lifetime” to be nominated to head the department, “I am convinced that, for personal reasons, moving forward would not be in the best interests of your administration, the Department of Homeland Security, or the American people.… I uncovered information that now leads me to question the immigration status of a person who had been in my employ as a housekeeper and nanny. It has also been brought to my attention that for a period of time during such employment required tax payments and related filings had not been made.” He says that he cannot allow personal matters to “distract from the focus and progress of the Department of Homeland Security and its crucial endeavors.”
Questionable Stock Transactions May Be behind Kerik's Withdrawal - Some Democrats believe that the real reason for Kerik’s withdrawal may be questions about his involvement with Taser International, a stun gun company that does business with DHS; Kerik recently made $6.2 million by exercising stock options in that firm (see December 9-10, 2004). Kerik’s close friend and business colleague, former New York Mayor Rudolph Giuliani, says of Kerik’s choice: “I’m disappointed that this had to happen, but I think it’s the right decision, the only decision given the kind of issue that’s involved here. I don’t think this would be as major an issue if it were a different department of government.… When an issue like this emerges, it makes it impossible to go forward.” Kerik’s lawyer, Joseph Tacopina, says Kerik is the one who decided to withdraw his name. “It was Bernie Kerik who uncovered this [the information about the nanny] on his own. He brought it to the White House,” says Tacopina. “He wanted to put the country first. He didn’t want to distract the president and distract the important mission that Homeland Security has.” As he withdraws his name from consideration, Kerik has still not completed his ethics filings, which will disclose his sources of income and financial liabilities, and the FBI has not yet completed its background investigation of him. [Associated Press, 12/13/2004; New York Times`, 12/13/2004] A Democratic Senate staff member says he is unsure whether the nanny issue is the only reason why Kerik withdrew his name from consideration. “Multiple media organizations were pursuing multiple stories” that would be potentially damaging to Kerik, the staffer says. Because many of these questions had not yet been answered by the administration, “fundamentally, he was a bad pick.… The process worked here.” [New York Times, 12/12/2004] The press has begun looking into other aspects of Kerik’s financial life, including the possibility that Kerik, while serving as police commissioner, helped a close friend, Frank DiTommaso, with suspected ties to the Gambino crime family get a construction license from the city in return for over $7,000 in cash and gifts. DiTommaso denies having any ties to organized crime, but city regulators later denied the license, citing their suspicions of just such ties. The White House denies knowing about any such connections between Kerik and DiTommaso. [New York Times, 12/13/2004] Other ethical, financial, and perhaps criminal questions surround Kerik’s withdrawal, though they will not surface until months or years later. [McClellan, 2008, pp. 245-246]
Kerik Unqualified for Position? - The New York Press’s editorial staff writes that Kerik was never qualified for the job, and that his candidacy is built upon what the editorial staff calls “the myth of Rudy Giuliani and 9/11.… The Rudy-9/11 myth is crucial to Kerik’s nomination, because without this myth there is no Rudy the National Player, and without Rudy the National Player there is no nomination of brusque outsider Bernie Kerik to a major cabinet post in Washington.” Kerik himself, the Press notes, is a senior vice president at Giuliani Partners LLC, where his reputation and manner help sell security-related products: “Because Kerik was acting chief of police when the planes slammed into the towers, and because Kerik embodies the Rudy myth by association, he is a golden moustache on the terror-business circuit, where he tells corporations and government agencies that another attack is on the way—especially if Democrats are in power—and that Nextel (or whoever) is the company to help them prepare for it.” Nothing in Kerik’s career, the Press observes, has prepared him to lead a sprawling federal bureaucracy, nor does he have any grounding in the world of international intelligence, “a critical field of knowledge for the incoming secretary.” The Press writes: “Homeland Security is meant to act as the ‘fusion center’ for all US intelligence operations. Whatever Kerik knows about this stuff, he likely gleaned from [action novelist] Tom Clancy.” [New York Press, 12/14/2004]
Media Did Its Job in Exposing Kerik's Flaws - In 2008, Scott McClellan, the current White House press secretary, will write: “After Bush nominated Kerik for secretary of Homeland Security… revelations about his behavior began flying. This was one episode in which the media illustrated the vital role the press can play in uncovering genuine malfeasance by public officials. Frankly, the media did a better job of vetting Bernard Kerik than the Bush administration did. Kerik was left with no choice but to resign.” [McClellan, 2008, pp. 245-246]

Entity Tags: Giuliani Partners, George W. Bush, Bernard Kerik, US Immigration and Customs Enforcement, US Department of Homeland Security, Frank DiTommaso, Scott McClellan, New York Press, Taser International, Rudolph (“Rudy”) Giuliani, Joseph Tacopina

Timeline Tags: Civil Liberties

A report authored by Greg Muttitt of PLATFORM concludes that Iraq would not benefit from an oil policy based on production sharing agreements (PSAs). According to Muttitt, the PSAs would cost Iraq “hundreds of billions of dollars in potential revenue,” while oil company profits would see annual rates of return “ranging from 42 percent to 62 percent for a small field, or 98 percent to 162 percent for a large field.” Muttitt’s study also warns that PSAs would result in Iraqis forfeiting control of their oil industry to foreign oil companies. For example, Iraq would lose its ability to control the depletion rate of its own oil resources. “As an oil-dependent country, the depletion rate is absolutely key to Iraq’s development strategy, but would be largely out of the government’s control,” Muttitt notes. Furthermore, PSAs, which typically have fixed terms of between 25 and 40 years, often include “stabilization clauses” that grant oil companies immunity from all future laws, regulations, and government policies. If Iraq were to sign such PSAs, future Iraqi governments would be unable to change tax rates or laws regulating labor standards, workplace safety, or the environment. PSA agreements also tend to put the host government at a disadvantage when there is a dispute with the contracted oil company. Most PSAs stipulate that disputes must be resolved in international arbitration tribunals where they are generally presided over by corporate lawyers and trade negotiators who will only consider narrow commercial issues without regard to Iraqi public interest. Muttitt’s report argues that Iraq has several options for developing its oil industry that would be far more beneficial to Iraq than relying on PSAs. One option would be for Iraq to hire specialist companies under short-term technical service contracts to provide expertise only when native expertise is lacking. There is no reason, Muttitt notes, for Iraq to give oil companies full control over the industry when Iraq has a highly-skilled oil sector workforce that is fully capable of managing the country’s oil production. All that’s needed, he says, is for them to receive training on the latest technologies. Until that is achieved, Iraq would be adequately served with a policy based on short-term technical service contracts. Muttitt also argues that Iraq has several options for acquiring the needed capital to jump start the oil sector. Foreign investment is neither the only, nor the most attractive solution for Iraq. He argues that using Iraqi money or borrowing funds would save Iraq billions of dollars in the long term. [Muttitt, 2005]

Entity Tags: Greg Muttitt

Timeline Tags: Iraq under US Occupation

The liberal news Web site AlterNet publishes an expose of “crisis pregnancy centers” (CPCs), clinics purporting to be women’s health centers offering pregnancy counseling, including abortions, but in reality operated by anti-abortion organizations (see April 2006). Reporter Amanda Marcotte notes that many CPCs are funded by over $60 million in government grants, and use the money to rent offices near real women’s clinics and health facilities, and rent billboards advertising their services as if they are actual health clinics. She writes: “If you’re facing an unwanted pregnancy, one of the possible solutions would be getting un-pregnant—still a legal, if sometimes difficult-to-find, option in America. But the ‘crisis pregnancy centers’ these signs advertise seek to limit and, in some cases, prevent women from exploring their legal options for health care.” CPCs are being heavily, and increasingly, funded by the Bush administration and conservative legislators earmarking funds in state and local budgets, at the expense of funds for actual women’s clinics. Low-income women are at particular risk for losing services, Marcotte notes. In some cases, she continues, anti-abortion organizations have formed for the specific purpose of obtaining government grants. The history of CPCs goes back at least as far as 1967, when anti-abortion activist Robert Pearson opened the first one as what he called “the service arm of the anti-choice movement.” During the 1980s, according to the pro-choice organization Planned Parenthood, CPCs would often provide shelter to women wanting abortions until the legal deadline for having the procedure had passed; the CPCs would then turn the women out, forcing them to either carry the fetus to term or seek an illegal abortion. By 1985, many states had put an end to CPCs falsely advertising themselves as real health clinics, forcing them to actually offer a minimum level of health care. Marcotte reports that “as a general rule, [CPCs] have few or no paid employees, no medical personnel on staff, and no real facilities to provide any medical care. Generally speaking, the medical treatment provided by the largely volunteer staff is nothing more than handing clients a pregnancy test that could be purchased over the counter for $10.” [AlterNet, 5/1/2006]

Entity Tags: Planned Parenthood, AlterNet (.org), Amanda Marcotte

Timeline Tags: US Health Care

Admiral William Fallon.Admiral William Fallon. [Source: US Navy]Admiral William Fallon, named to replace General John Abizaid as head of the US Central Command (Centcom) for the Middle East and Southwest Asia (see March 16, 2007), reportedly privately opposes the proposed addition of a third US aircraft carrier group in the Persian Gulf, and vows that there will be no war against Iran as long as he is chief of Centcom. Fallon’s opposition to a military strike against Iran results in a shift in the Bush administration away from its aggressive, threatening posture towards Iran, and instead moves the administration’s rhetoric incrementally towards diplomatic engagement with that nation. Historian and author Gareth Porter writes, “That shift, for which no credible explanation has been offered by administration officials, suggests that Fallon’s resistance to a crucial deployment was a major factor in the intra-administration struggle over policy toward Iran.” Fallon’s resistance to further naval buildups in the Gulf apparently surprises Bush officials; in January, Defense Secretary Robert Gates publicly suggested that Fallon’s appointment gives greater emphasis on the military option for Iran. Gates said in January, “As you look at the range of options available to the United States, the use of naval and air power, potentially, it made sense to me for all those reasons for Fallon to have the job.” A third carrier group deployment would have pushed the US naval presence in the region to the same level as it was during the last months of the Saddam Hussein regime in Iraq. Apparently, the deployment of a third carrier group was envisioned as a means of pressuring the Iranian government, in a plan to engage in a series of operations that would appear to Tehran to be war preparations much like those that presaged the invasion of Iraq (see March 19, 2003). But Fallon’s opposition scotched those plans. Fallon recently told an informed source that an attack on Iran “will not happen on my watch.… You know what choices I have. I’m a professional.” And Fallon indicated he is not alone: “There are several of us trying to put the crazies back in the box.” Fallon’s position weakens the belligerent posture adopted by Vice President Dick Cheney and his aides, and strengthens that of Secretary of State Condoleezza Rice, who is now preparing to make high-level diplomatic contacts with Iranian officials. [Inter Press Service, 5/15/2007]

Entity Tags: John P. Abizaid, Bush administration (43), Condoleezza Rice, Gareth Porter, Robert M. Gates, US Central Command, William Fallon, Richard (“Dick”) Cheney, Saddam Hussein

Timeline Tags: US confrontation with Iran

US defense officials, led by Defense Secretary Robert Gates, say they are not entirely supportive of President Obama’s promise to withdraw from Iraq within 16 months. Gates is the only Obama administration holdover from the former Bush administration. Instead of getting behind Obama’s 16-month withdrawal, which was a central promise of Obama’s campaign, defense officials say they intend to present Obama with a “full range of options.” Asked about Obama’s meeting with him and senior US military commanders to discuss withdrawal, Gates says the 16-month timetable is just “the beginning of a process of evaluating various options.” The White House has said that the plans to withdraw American forces from Iraq in 16 months are firm. “Let me just say, I think our obligation is to give the president a range of options and the risks associated with each of those options,” Gates notes. “And he will make the decision.” Iraq is still a nation in transition, says Admiral Michael Mullen, the head of the Joint Chiefs of Staff, and this year’s series of elections in Iraq provides reason for both hope and apprehension. “There’s growing confidence, but it’s not in leaps and bounds,” Mullen says. General Ray Odierno, the senior US commander in Iraq, says, “How the provincial elections play out will, I think, be a big indicator for 2009, which is a big year.” Mullen is in favor of a “responsible drawdown,” but is not sure exactly how it should progress. Outgoing US ambassador Ryan Crocker joins Gates, Mullen, and Odierno in warning of what he calls a “precipitous” withdrawal (see January 22, 2009). “Al-Qaeda is incredibly tenacious,” Crocker says. “As long as they hang on they are looking for the opportunity to regenerate.” Obama intends to withdraw some forces from Iraq for duty in Afghanistan, which he views as the US’s central front in battling terrorism. There are currently 143,000 US troops in Iraq, and only 34,000 in Afghanistan. The US commander in Afghanistan wants another 30,000 troops; the Pentagon says those will be provided over the next 12 to 18 months. Gates agrees with Obama’s intention to refocus US military efforts on Afghanistan: “The president has been quite clear that the mission is to responsibly draw down and end our active combat role, the role that we have been playing over the last number of years. He wants to put more emphasis on Afghanistan and deal with the problems in Afghanistan there and the challenges that we face in Afghanistan.” [Agence France-Presse, 1/22/2009]

Entity Tags: Raymond Odierno, Barack Obama, Bush administration (43), Michael Mullen, Obama administration, Robert M. Gates, Ryan C. Crocker

Timeline Tags: Iraq under US Occupation

Group of 8 (G-8) leaders from across the globe release a statement from their meeting in L’Aquila, Italy, saying that economic recovery from the worst recession since World War II is too frail for them to consider repealing efforts to infuse money into the economy. US President Barack Obama, British Prime Minister Gordon Brown, European Commission President Jose Barroso, German Chancellor Angela Merkel, Canadian Prime Minister Stephen Harper, French President Nicolas Sarkozy, Japanese Prime Minister Taro Aso, Italian Prime Minister Silvio Berlusconi, and Russian President Dmitriy Medvedev assembled for the annual gathering where Obama pressed to maintain an open door for additional stimulus actions. A new drop in stocks generated global concern that, to date, the $2 trillion already sunk into economies had not provided the economic bump that would bring consumers and businesses back to life. “The G-8 needed to sound a second wakeup call for the world economy,” Brown told reporters after the gathering’s opening sessions. “There are warning signals about the world economy that we cannot ignore.” A G-8 statement embraces options ranging from a second US stimulus package—advocated by some lawmakers and economists—to an emphasis by Germany on shifting the focus to deficit reduction.
What Next? - Disagreements over what to do next, as well as calls from developing nations to do more to counteract the slump, emphasize that the Group of 8 has little if any room to maneuver, since the largest borrowing binge in 60 years has, so far, failed to stop rising unemployment and has left investors doubting the potency of the recovery. Even as G-8 leaders held their first meeting, the Morgan Stanley Capital International (MSCI) World Index of stocks continued a five-day slide, and the 23-nation index had dropped 8 percent since its three-month rally that ended on June 2. The International Monetary Fund (IMF) upgraded its 2010 growth forecast, saying the rebound would be “sluggish,” and urged governments to stay the course with economic stimuli. The IMF also said that emerging countries such as China would lead the way, with an expansion of 4.7 percent in 2010, up from their April prediction of 4 percent. “It’s a very volatile situation,” said European Commission President Barroso in a Bloomberg Television interview from L’Aquila. “We are not yet out of the crisis, but it seems now that the free fall is over.”
Exit Strategems Discussion - “Exit strategies will vary from country to country depending on domestic economic conditions and public finances,” the leaders conclude, but deputy US National Security Adviser Mike Froman tells reporters, “There is still uncertainty and risk in the system.” Froman says that although exit strategies should be drawn up, it’s not “time to put them into place.” The IMF forecasts that, in 2014, the debt of advanced economies will explode to at least 114 percent of US gross domestic product because of bank bailouts and recession-battling measures. German Chancellor Merkel, campaigning for re-election in September and the leading opponent of additional stimulus, warned against burgeoning budget deficits, which the IMF has predicted will rise to an average of 6 percent of the EU’s 2009 gross domestic product, from 2.3 percent in 2008. At last month’s European Union summit, Merkel pushed through a statement that called for “a reliable and credible exit strategy,” and insisted, “We have to get back on course with a sustainable budget, but with the emphasis on when the crisis is over.” [G8 Summit 2009, 7/2/2009; Bloomberg, 7/9/2009]

Entity Tags: Morgan Stanley Capital International (MSCI) World Index, Mike Froman, Jose Manuel Barroso, International Monetary Fund, Taro Aso, National Security Council, Nicolas Sarkozy, Silvio Berlusconi, Angela Merkel, Gordon Brown, Barack Obama, Standard & Poor’s, Stephen Harper, Dmitriy Medvedev

Timeline Tags: Global Economic Crises

Slate reporter and columnist Christopher Beam coins a new term, “deathers,” to label conservatives who are spreading the debunked rumors that President Barack Obama’s health care proposals would kill old people (see July 16, 2009 and July 23, 2009). Beam publishes his article on the same day that Representative Virginia Foxx (R-NC) claims that under Obama’s reforms, seniors would be “put to death” (see July 28, 2009), and that Obama holds a “town hall” meeting where he debunks this and other rumors surrounding his proposals (see July 28, 2009). The claim apparently originated with lobbyist and lawyer Betsy McCaughey (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 16, 2009, and July 23-24, 2009), who used similarly questionable claims to derail the 1994 reform proposals by the Clinton administration (see Mid-January - February 4, 1994). Others have made similar assertions; Representative Paul Broun (R-GA) recently warned that Obama’s reform proposals would “kill people” (see July 10, 2009), and conservative commentator and author Charlotte Allen says: “Obama’s not going to say, ‘Let’s kill them.’ But he seems to be perfectly comfortable with the idea that a lot more old people are going to die a lot sooner.”
End-of-Life Consultations - Beam shows that the language of the bill, as it stands in Congress at this time, provides for “end-of-life consultations” between patients and doctors, if the patients wish them. In those consultations, doctors would explain what kind of services are available to those patients—palliative care and hospices, in-home care, more intensive treatments in a hospital, etc.—but would not tell patients that they had to restrict themselves to less intensive treatments that would shorten their lives. Some “deathers” have also insisted that the bill provides for the withholding of “artificially administered nutrition and hydration.” McCaughey is a vocal proponent of this claim. However, such a choice would have to be made by the patient and/or the family, specifically not a doctor.
Shared Decision-Making - Opponents of health care reform such as McCaughey claim that the House bill would “coerce” seniors into taking part in a program that forces them into making decisions about “trade-offs among treatment options,” or takes the final decision-making power away from them and places it in the hands of doctors or government officials. In reality, the bill would provide an informational tool for patients and families to make informed decisions. No coercion could legally be applied.
Obama Staffers Cause Concern - Some of Obama’s staffers have said and written things that cause consternation among reform opponents (see July 23-24, 2009). One of Obama’s senior health care advisers, Ezekiel Emanuel, who serves as health policy adviser at the White House’s Office of Management and Budget (OMB), wrote in 2008 that doctors too often interpret the Hippocratic oath “as an imperative to do everything for the patient regardless of the cost or effects on others,” leading some to wonder if Emanuel would put cost concerns over patients’ needs; others have gone farther, comparing Emanuel to Nazi doctors and of advocating “eugenics.” In 1977, Obama’s “science czar,” John Holdren, joined two other authors in writing about possible methods of population control, including a speculative bit about sterilizing people by introducing chemicals into the water supply. (ABC News later reports that the controversial passage was from a textbook in which various methods of population control were considered and rejected. Holdren recently released a statement saying that population control is not the government’s job; his statements on the matter passed muster in the Senate Commerce Committee, whose Republican members joined Democrats in unanimously approving his nomination as the director of the White House’s Office of Science and Technology Policy.) And some worry that the proposed Independent Medicare Advisory Council, which would oversee cost containment for Medicare, would be staffed, in Allen’s words, with “a certain class of secularized intellectuals” who might put cost concerns over quality of life. [Slate, 7/28/2009; ABC News, 7/28/2009]

Entity Tags: John Holdren, Charlotte Allen, Barack Obama, Christopher Beam, Ezekiel Emanuel, Senate Commerce Committee, Elizabeth (“Betsy”) McCaughey, Office of Science and Technology Policy, Medicare, Virginia Foxx, Paul Broun

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

Representative Ginny Brown-Waite (R-FL), who a month ago said that the Obama administration’s ideas on health care reform would send a message to senior citizens to “drop dead,” says that the idea of “death panels” as touted by former Governor Sarah Palin (R-AK) and others (see July 16, 2009, August 7, 2009, and August 10, 2009), is untrue. Brown-Waite opposes the Democrats’ health care reform in the House because it would cut funds from the Medicare Advantage program, costing some senior citizens more money. Of the so-called “death panels” provision, Brown-Waite notes, “It doesn’t say that they’re going to receive counseling on euthanasia, that’s not what it says.” And, she adds, lawmakers are not considering “some of the gruesome options opponents are slinging around as scare tactics” (see July 24, 2009). “I do not believe that Americans would ever accept end-of-life care advice that included any form of ways to end one’s life.” Some conservative anti-reform protesters now consider Brown-Waite a “Democratic collaborator” for her comments, but she has won praise from the American Association of Retired Persons (AARP) for exposing Palin’s “death panel” rhetoric as a lie. “She put principle first and laid out the facts,” the AARP notes in a news release. [Ocala Star-Banner, 8/11/2009]

Entity Tags: Ginny Brown-Waite, American Association of Retired Persons, Sarah Palin, Medicare, Obama administration

Timeline Tags: US Health Care, Domestic Propaganda

Within minutes of the release of a new study by health insurance lobbying firm America’s Health Insurance Plans (AHIP) that claims health care reform would drastically raise costs to American families (see October 11, 2009), critics from different sides of the political divide dispute the study’s accuracy and question its impartiality.
White House: Study Ignores Key Elements of Reform - White House assistant press secretary Reid Cherlin says the study “conveniently ignores critical policies that will lower costs for those who have insurance, expand coverage, and provide affordable health insurance options to millions of Americans who are priced out of today’s health insurance market or are locked out by unfair insurance company practices.” [MSNBC, 10/12/2009]
'Blowback' from Study Possible - White House and Senate officials say that the insurance industry may suffer “blowback” over the report. Democrats may well close ranks behind either the Senate Finance Committee (SFC) bill or another version of the legislation, and liberal lawmakers may go after the insurance companies, maybe by proposing a cap on premiums or solidifying support for the government insurance plan. “They have opened themselves up,” says a senior Senate Democratic aide. “It is an incredibly stupid strategic blunder. If you are going to fire a shot like this, you fire a good shot.” Former industry executive Wendell Potter, who has become an industry whistleblower (see July 10, 2009), says AHIP is responding to critical analyses from Wall Street that the legislation will hurt private insurers. “Karen [AHIP official Karen Ignagni] had no alternative because the CEOs were so determined to do something to try to sway the committee to back off the reductions,” he says. “She didn’t have an alternative. They are obviously doing this on the eve of the vote in the Senate Finance Committee, hoping enough members of the committee would be concerned, to restore it. I think the strategy will backfire.” [Politico, 10/12/2009]
Economist: Study Fundamentally Flawed - MIT economist Jonathan Gruber analyzes the PWC study and concludes that it is fundamentally flawed. He writes: “The nonpartisan analysis based on information from the CBO [Congressional Budget Office] shows clearly that for those facing purchase in the non-group market, the SFC bill will deliver savings ranging from several hundred dollars for the youngest consumers to over $8,500 for families. This is in addition to all the other benefits that this legislation will deliver to those consumers—in particular the guarantee, unavailable in most states, that prices would not be raised or the policy revoked if they became ill.” On MSNBC, Gruber notes: “If the report had came out and said, ‘look we need stronger penalties, or premiums will go up,’ that’s a very valid point to make. But what the report says is that it went too far. It said with the current structure, premiums will be much higher than they are today. And that’s just wrong. I mean, the nonpartisan Congressional Budget Office has came out and said that for this bill, premiums in the exchange will be lower than they are in the none group market today. So they just drew the wrong comparison.” [Massachusetts Institute of Technology, 10/12/2009; Think Progress, 10/13/2009]
Democrats: Proof that Industry Needs Further Regulation - Representative Anthony Weiner (D-NY) says, “[T]he health insurance lobby today fired the most important salvo in weeks for the public option,” and adds that the study proves the industry needs further regulations imposed on it by Congress: “If you have the health care industry complaining that we’re going to raise costs because of these changes, it is them putting us on notice that we haven’t put enough cost containment in the bill. You know, the health care industry themselves is putting out a whole report saying that. That should be a tell to the [Senate Finance Committee] that you know what, maybe it’s time for them to go back and revisit the public option. In a strange way, and look, obviously they didn’t mean this, the health insurance lobby today fired the most important salvo in weeks for the public option, because they have said, as clear as day, left to their own devices, according to their own number crunchers, they’re going to raise rates 111 percent.” [Think Progress, 10/12/2009] Senator John D. Rockefeller (D-WV) charges the insurance industry with releasing a false study for political purposes. “The misleading and harmful claims made by the profit-driven insurance companies are politicking for corporate gain at its worst,” he says. “Their recent statements only further highlight that our focus here in Congress must be on the inclusion of a public health insurance option in the marketplace to protect families and put more money back in their wallets by creating greater competition and driving down costs.” [Politico, 10/12/2009]
Washington Post: 'Industry Hit Job' - The Washington Post’s Ezra Klein calls the report “deceptive” and “a predictable industry hit job,” and notes that the study was produced by accounting and services firm PriceWaterhouseCoopers (PWC), which in the 1990s was commissioned by the tobacco industry to do a study on the economic catastrophe that would result from taxing tobacco products. That study was found to be unreliable, and, perhaps not surprisingly, made all of its errors in favor of the tobacco industry. Klein writes that the same effect can be observed in this report on health care. He concludes: “But if the [study] doesn’t offer much in the way of trustworthy policy analysis, it is an interesting looking at the changing politics of the issue. In short, the insurance industry is getting scared. After many months of quiet constructiveness, they’re launching a broadside on the week of the Senate Finance Committee’s vote. The White House, which had a pleasant meeting with the industry’s leadership last week, was shocked by the report, and so too was the Senate Finance Committee. The era of cooperation seems to be over, and they weren’t given much advance warning. But the report might have another impact, too: The evident anger and fear of the insurance industry might do a bit to reassure liberals that this plan is worth supporting, after all.” [Washington Post, 10/12/2009]
New Republic: 'Questionable Assumptions' - The New Republic’s Jonathan Cohn chastizes PriceWaterhouse for deliberately, and explictly, choosing to believe that all the new factors included in the study will raise costs, when other analyses show that many of those factors will actually drive costs down. Cohn writes that the study is based on a plethora of “strange [and] questionable assumptions.” [New Republic, 10/11/2009]
Progressive Columnist: 'This Is News?' - Progressive columnist Josh Marshall wrote before the study was released: “Let me get this right. The big news tomorrow is that ‘America’s Health Insurance Plans’ (AHIP, aka the health insurance lobby) has commissioned a study by PriceWaterHouseCoopers that comes to the conclusion that the Senate Finance Committee bill is a bad, bad thing and would lead to health care costs going up even faster than they are under the current system. This is news?” [Talking Points Memo, 10/12/2009]
Washington Times: Defending the Study, Attacking the CBO - The conservative Washington Times defends the study as essentially accurate, and instead attacks the Congressional Budget Office, whose own figures differ dramatically from the PWC study. The Times editorial board calls the CBO’s estimates “fanciful” and “grandly overoptimistic,” and accuses the Democrats of adding opportunities for consumers to “game the system”—“It’s a mystery how the CBO can make its evaluation without once mentioning that individuals easily will be able to go without insurance while they are healthy and then buy insurance after they get sick.” The entire proposal allows Democrats to “avoid electoral accountability over the urgent health care needs of the people they say they’re trying to help but won’t.” [Washington Times, 10/12/2009]
AHIP Defends Study - Ignagni defends the study and says the lobbying firm did not release it to undermine the Finance Committee’s attempt to craft an acceptable reform bill. She says the industry’s main concern is getting everyone involved in health care to work together to bring costs down. There is a strong need, she says, to “encourage all the other stakeholders to participate in a broader effort so that they can too lend a hand and get costs under control in a much more effective way than we would.… We don’t see comprehensive cost control in any legislation.” [MSNBC, 10/12/2009]
PWC Backs Off from Study - Late in the evening, PWC issues a statement noting that the study only examined “a small slice” of the health care reform initiative, and saying that if other provisions in the reform package succeed in lowering costs, then the estimates of cost increases claimed in the study would be inaccurate (see October 12, 2009).

Entity Tags: America’s Health Insurance Plans, Anthony D. Weiner, Jonathan Gruber, Congressional Budget Office, Ezra Klein, Jonathan Cohn, Wendell Potter, John D. Rockefeller, PriceWaterhouseCoopers, Karen Ignagni, Washington Times, Obama administration, Joshua Micah Marshall, Reid Cherlin, Senate Finance Committee

Timeline Tags: US Health Care

William Gheen, the leader of the political action committee Americans for Legal Immigration PAC (ALIPAC), tells conservative radio host Janet Mefferd that President Obama is a “dictator” who is waging war on “white America,” and recommends “illegal and violent” actions to remove him from office. Gheen has previously labeled Obama a “traitor” and accused him of “replacing many core Americans,” referring to whites. ALIPAC is considered a “nativist,” anti-immigrant organization by the Southern Poverty Law Center (SPLC). Gheen and ALIPAC insist that Obama is leading an “invasion” of “white America” by “illegal immigrants” with the ultimate purpose of giving the nation to said immigrants. ALIPAC was instrumental in getting draconian anti-immigration laws passed in Arizona and other states.
Advocacy of Military Coup d'Etat, Calls for 'Illegal and Violent' Actions to Remove 'Dictator Barack Obama' - Gheen tells Mefford: “What Janet Napolitano [the director of homeland security] has spent most of her time doing in the last couple of months has been, one, preparing the new spy network that’s available now, the new data-collecting, see everything you do online, beyond the normal terrorist list that they’re creating, they’re creating a much larger list now of people who might be troublesome here in the country. And putting out videos and propaganda telegraphing what I believe to be a conflict with white America they’re preparing for after they get another 10 or 15 million people in the country to back them up.… We’re no longer referring to him as President Barack Obama, our national organization has made the decision and made the announcement we now refer to him as Dictator Barack Obama. That’s what he is. And basically at this point, if you’re looking for a peaceful, political recourse, there really isn’t one that we can think of, and I’m really not sure what to tell people out there than I guess they need to make decisions soon to just accept whatever comes next or some type of extra-political activities that I can’t really talk about because they’re all illegal and violent.” Gheen goes on to accuse Obama of trying to “integrate” the US economy with those of Canada and Mexico “in a way that bypasses the legislatures,” and says that the military should forcibly remove Obama from office. Later in the interview, Gheen calls on Congressional Republicans to impeach Obama, and says his organization cannot hold marches in Washington, DC, against Obama because he fears Obama has too many supporters among the city’s black and Latino residents. [Right Wing Watch, 8/22/2011; Southern Poverty Law Center, 8/23/2011; Right Wing Watch, 8/24/2011]
'Sharp Rightward Lurch' - The SPLC says that Gheen’s statements “mark a sharp rightward lurch” for him; in recent months, he has pulled ALIPAC out of anti-immigration rallies in Arizona because of the participation of neo-Nazi and skinhead groups in those rallies, and has told group members to have nothing to do with the nativist Minuteman groups after an Arizona Minuteman leader was arrested for the murder of a Latino man and his nine-year-old daughter. However, Gheen and ALIPAC have issued a number of bigoted and racist statements, mostly against Hispanics and homosexuals. [Southern Poverty Law Center, 8/23/2011]
'Clarification' Insists No Call for Violence, Denounces 'Left Wing' 'Attackers' - The day after his appearance on Mefferd’s show, Gheen issues a “clarification” of his statement that accuses “left wing bloggers and groups” of “attack[ing]” him over his comments, and denies making any calls for violence against Obama. “I have always been and remain dedicated to the peaceful political and civic processes to which I have dedicated my life in America,” he writes. “I would never jeopardize my reputation or my cause of securing America’s border by engaging in violent rhetoric or advocacy. I should have been more specific about my comments and indicated that I was reporting the conditions Americans face at the hands of Obama. I should have spoken more like an attorney writing fine print, as I usually have to do. I was asked what people should do now that Barack Obama has bypassed Congress and the US Constitution and instituted the Dream Act Amnesty via dictatorial decree. I mentioned that some groups were looking into lawsuits,” and, referring to his recommendation that groups use “illegal and violent” acts to “depose” the “Dictator Obama,” continues, “I meant that I cannot talk about such things because my job has been to support political campaigns, lobby Congress, do media appearances, send emails, faxes, and educate the public about illegal immigration. I have made it very clear that I disavow any form of violence on many occasions. I cannot delve into the options Barack Obama is forcing on Americans that are concerned about the illegal alien invasion of America.… The only reason I even mentioned that people in America are being forced into a decision between submission or more revolutionary means is because that is the situation that is being created by Dictator Barack Obama, not me.” He boasts that he has “never started a physical fight, but I’ve finished a few in my time and I would never engage in violence against anyone for any reason other than to protect myself and my family from physical harm,” says he has no intention of backing away from any conflicts, and makes more allegations of unfair “attacks” by a number of people and groups, including the SPLC and liberal radio host Alan Colmes. “I never said that any violence was ‘needed,’” he writes, “and I certainly never put the words about anything violent towards Obama. I know clearly that is a violation of federal law. But in the case of many of these supporters of Dictator Obama, they certainly don’t let the truth stop them from going after their enemies.” He goes on to accuse Obama and his administration of shipping thousands of Hispanic immigrants into America for the purpose of attacking white citizens, accuses “illegal aliens” of engineering the “illegitimate” takeover of the US Senate under Democratic leadership, accuses the “left” of “demonizing” the “tea party” movement, and says Obama is using “our stimulus tax dollars” and a number of federal agencies, including “the [B]ATF, DEA, DOJ, FBI, and CIA… to buy thousands of assault rifles for the invading Mexican cartels that are smuggling cocaine, methamphetamine, and illegal aliens into America!” His rhetoric, he writes, is intended to bring America together, not divide it. He concludes by saying that if there is indeed a violent revolution to overthrow the government, he is under too much “scrutiny and hatred” to be able to take part in it, and “will never advocate nor join nor support any violent actions outside of personal self defense because I am committed to the path of peace and nonviolence. I will walk right into the heart of Washington, DC, and confront this dictator unarmed and unafraid with full confidence in my Lord and I will walk as a sheep among wolves. I do not believe that the forces that at are destroying America can be vanquished with the force or arms. I believe this is a spiritual conflict. I believe that only through divine Providence will God save the United States of America.” [Americans for Legal Immigration PAC, 8/23/2011; Right Wing Watch, 8/24/2011]
Denies Using the Words 'Illegal' and 'Violent' - This evening he goes on Colmes’s radio show. Gheen claims he never used the words “illegal and violent” even after Colmes plays that segment of the interview, accuses Colmes of “exploit[ing]” his words, and says that because he advocates non-violence on his Web site, he does not need to do the same on-air: “I should’ve prepared my comments a little bit better so they wouldn’t be exploited by the opposition.” [Alan Colmes, 8/23/2011; Right Wing Watch, 8/24/2011]

Entity Tags: William Gheen, Southern Poverty Law Center, Barack Obama, Janet Mefferd, Janet Napolitano, Alan Colmes, Americans for Legal Immigration PAC, Obama administration

Timeline Tags: US Domestic Terrorism

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