Sunday, April 26, 2020

How The "West Point Mafia" Runs Washington

Every West Point class votes on an official motto. Most are then inscribed on their class rings. Hence, the pejorative West Point label “ring knocker.” (As legend has it, at military meetings a West Pointer “need only knock his large ring on the table and all Pointers present are obliged to rally to his point of view.”) Last August, the class of 2023 announced theirs: “Freedom Is Not Free.” Mine from the class of 2005 was “Keeping Freedom Alive.” Each class takes pride in its motto and, at least theoretically, aspires to live according to its sentiments, while championing the accomplishments of fellow graduates.
But some cohorts do stand out. Take the class of 1986 (“Courage Never Quits”). As it happens, both Secretary of Defense Mark Esper and Secretary of State Mike Pompeo are members of that very class, as are a surprisingly wide range of influential leaders in Congress, corporate America, the Pentagon, the defense industry, lobbying firms, big pharma, high-end financial services, and even security-consulting firms. Still, given their striking hawkishness on the subject of American war-making, Esper and Pompeo rise above the rest. Even in a pandemic, they are as good as their class motto. When it comes to this country’s wars, neither of them ever quits.
Once upon a time, retired Lt. Gen. Douglas Lute (Class of ’75), a former US Ambassador to NATO and a senior commander in Iraq and Afghanistan, taught both Esper and Pompeo in his West Point social sciences class. However, it was Pompeo, the class of ’86 valedictorian, whom Lute singled out for praise, remembering him as “a very strong student—fastidious, deliberate.” Of course, as the Afghanistan Papers, released by The Washington Post late last year, so starkly revealed, Lute told an interviewer that, like so many US officials, he “didn’t have the foggiest notion of what we were undertaking in Afghanistan.” Though at one point he was President George W. Bush’s “Afghan war czar,” the general never expressed such doubts publicly and his record of dissent is hardly an impressive one. Still, on one point at least, Lute was on target: Esper and Pompeo are smart, and that’s what worries me (as in the phrase “too smart for their own good”).
Esper, a former Raytheon lobbyist, had particularly hawkish views on Russia and China before he ever took over at the Pentagon and he wasn’t alone when it came to the urge to continue America’s wars. Pompeo, then a congressman, exhibited a striking pre–Trump era foreign policy pugnacity, particularly vis-à-vis the Islamic world. It has since solidified into a veritable obsession with toppling the Iranian regime.
Their militarized obsessions have recently taken striking form in two ways: The secretary of defense instructed US commanders to prepare plans to escalate combat against Iranian-backed militias in Iraq, an order the mission’s senior leader there, Lt. Gen. Robert “Pat” White, reportedly resisted; meanwhile, the secretary of state evidently is eager to convince President Trump to use the Covid-19 pandemic, now devastating Iran, to bomb that country and further strangle it with sanctions. Worse yet, Pompeo might be just cunning enough to convince his ill-informed, insecure boss (so open to clever flattery) that war is the answer.
The militarism of both men matters greatly, but they hardly pilot the ship of state alone, any more than Trump does (whatever he thinks). Would that it were the case. Sadly, even if voters threw them all out, the disease runs much deeper than them. Enter the rest of the illustrative class of ’86.
As it happens, Pompeo’s and Esper’s classmates permeate the deeper structure of imperial America. And let’s admit it, they are, by the numbers, an impressive crew. As another ’86 alumnus, Congressman Mark Green (R-TN), bragged on the House floor in 2019, “My class [has] produced 18 general officers…22-plus presidents and CEOs of major corporations…two state legislators…[and] three judges,” as well as “at least four deans and chancellors of universities.” He closed his remarks by exclaiming, “Courage never quits, ’86!”
However, for all his gushing, Green’s list conceals much. It illuminates neither the mechanics nor the motives of his illustrious classmates; that is, what they’re actually doing and why. Many are key players in a corporate-military machine bent on, and reliant on, endless war for profit and professional advancement. A brief look at key ’86ers offers insight into President Dwight D. Eisenhower’s military-industrial complex in 2020—and it should take your breath away.

THE WEST POINT MAFIA

The core group of ’86 grads cheekily refer to themselves as “the West Point Mafia.” And for some, that’s an uplifting thought. Take Joe DePinto, CEO of 7-Eleven. He says that he’s “someone who sleeps better at night knowing that those guys are in the positions they’re in.” Of course, he’s an ’86 grad, too.
Back when I called the academy home, we branded such self-important cadets “toolbags.” More than a decade later, when I taught there, I found my students still using the term. Face facts, however: those “toolbags,” thick as thieves today, now run the show in Washington (and despite their busy schedules, they still find time to socialize as a group).
Given Donald Trump’s shady past—one doesn’t build an Atlantic City casino-and-hotel empire without “mobbing it up“—that “Mafia” moniker is actually fitting. So perhaps it’s worth thinking of Mike Pompeo as the president’s latest consigliere. And since gangsters rarely countenance a challenge without striking back, Lieutenant General White should watch his back after his prudent attempt to stop the further escalation of America’s wars in Iraq and Iran in the midst of a deadly global pandemic. Worse yet for him, he’s not a West Pointer (though he did, oddly enough, earn his Army commission on the very day that class of ’86 graduated). White’s once promising career is unlikely to be long for this world.
In addition to Esper and Pompeo, other Class of ’86 alums serve in key executive branch roles. They include Vice Chief of Staff of the Army Gen. Joseph Martin, the director of the Army National Guard, the commander of NATO’s Allied Land Command, the deputy commanding general of Army Forces Command, and the deputy commanding general of Army Cyber Command. Civilian-side classmates in the Pentagon serve as: deputy assistant secretary of the Army for installations, energy, and environment; a civilian aide to the secretary of the Army; and the director of stabilization and peace operations policy for the secretary of defense. These Pentagon career civil servants aren’t, strictly speaking, part of the “Mafia” itself, but two Pompeo loyalists are indeed charter members.
Pompeo brought Ulrich Brechbuhl and Brian Butalao, two of his closest cadet friends, in from the corporate world. The three of them had, at one point, served as CEO, CFO, and COO of Thayer Aerospace, named for the “father” of West Point, Colonel Sylvanus Thayer, and started with Koch Industries seed money. Among other things, that corporation sold the Pentagon military aircraft components.
Brechbuhl and Butalao were given senior positions at the CIA when Pompeo was its director. Currently, Brechbuhl is the State Department’s counselor (and reportedly Pompeo’s de facto chief of staff), while Butalao serves as under secretary for management. According to his official bio, Butalao is responsible “for managing the State Department on a day-to-day basis and [serving as its] Chief Operating Officer.” Funny, that was his exact position under Pompeo at that aerospace company.
Still, this Mafia trio can’t run the show by themselves. The national security structure’s tentacles are so much longer than that. They reach all the way to K Street and Capitol Hill.

FROM CONGRESS TO K STREET: THE ENABLERS

Before Trump tapped Pompeo to head the CIA and then the State Department, he represented Wichita, Kansas, home to Koch Industries, in the House of Representatives. In fact, Pompeo rode his ample funding from the political action committee of the billionaire Koch brothers straight to the Hill. So linked was he to those fraternal right-wing energy tycoons and so protective of their interests that he was dubbed “the congressman from Koch.” The relationship was mutually beneficial. Pompeo’s selection as secretary of state solidified the previously strained relationship of the brothers with President Trump.
The ’86 Mafia’s current congressional heavyweight, however, is Mark Green. An early Trump supporter, he regularly tried to shield the president from impeachment as a minority member of the House Oversight and Reform Committee. The Tennessee representative nearly became Trump’s secretary of the Army, but ultimately withdrew his nomination because of controversies that included his sponsoring gender-discrimination bills and commenting that “transgender is a disease.”
Legislators like Green, in turn, take their foreign policy marching orders from the military’s corporate suppliers. Among those, Esper, of course, represents the gold standard when it comes to “revolving door” defense lobbying. Just before ascending the Pentagon summit, pressed by Senator Elizabeth Warren during his confirmation hearings, he patently refused to “recuse himself from all matters related to” Raytheon, his former employer and the nation’s third-largest defense contractor. (And that was even before its recent merger with United Technologies Corporation, which once employed another Esper classmate as a senior vice president.) Incidentally, one of Raytheon’s “biggest franchises” is the Patriot missile defense system, the very weapon being rushed to Iraq as I write, ostensibly as a check on Pompeo’s favored villain, Iran.
Less well known is the handiwork of another ’86 grad, longtime lobbyist and CNN paid contributor David Urban, who first met the president in 2012 and still recalls how “we clicked immediately.” The consummate Washington insider, he backed Trump “when nobody else thought he stood a chance” and in 2016 was his senior campaign adviser in the pivotal swing state of Pennsylvania.
Esper and Urban have been close for more than 30 years. As cadets, they served in the same unit during the Persian Gulf War. It was Urban who introduced Esper to his wife. Both later graced The Hill’s list of Washington’s top lobbyists. Since 2002, Urban has been a partner and is now president of a consulting giant, the American Continental Group. Among its clients: Raytheon and 7-Eleven.
It’s hard to overstate Urban’s role. He seems to have landed Pompeo and Esper their jobs in the Trump administration and was a key go-between in marrying class of ’86 backbenchers and moneymen to that bridegroom of our moment, The Donald.

GREASING THE MACHINE: THE MONEYMEN

Another ’86er also passed through that famed military-industrial revolving door. Retired Col. Dan Sauter left his position as chief of staff of the 32nd Army Air and Missile Defense Command for one at giant weapons maker Lockheed Martin as business developer for the very systems his old unit employed. Since May 2019, he’s directed Lockheed’s $1.5 billion Terminal High Altitude Area Defense (THAAD) program in Saudi Arabia. Lockheed’s THAAD systems have streamed into that country to protect the kingdom, even as Pompeo continually threatens Iran.
If such corporate figures are doing the selling, it’s the Pentagon, naturally, that’s doing the buying. Luckily, there are ’86 alumni in key positions on the purchasing end as well, including a retired brigadier general who now serves as the Pentagon’s principal adviser to the under secretary for acquisition, technology, and logistics.
Finally, there are other key consultants linked to the military-industrial complex who are also graduates of the class of ’86. They include a senior vice president of Hillwood—a massive domestic and international real estate development company, chaired by Ross Perot Jr.—formerly a consultant to the government of the United Arab Emirates. The Emiratis are US allies in the fight against Pompeo’s Iranian nemesis and, in 2019, awarded Raytheon a $1.5 billion contract to supply key components for its Air Force missile launchers.
Another classmate is a managing partner for Patriot Strategies, which consults for corporations and the government but also separately lands hefty defense contracts itself. His previous “ventures” included “work in telecommunications in the Middle East…and technical security upgrades at U.S. embassies worldwide.”
Yet another grad, Rick Minicozzi, is the founder and CEO of Thayer Leader Development Group (TLDG), which prides itself on “building” corporate leaders. TLDG clients include: 7-Eleven, Cardinal Glass, EMCOR, and Mercedes-Benz. All either have or had ’86ers at the helm. The company’s CEO also owns the Thayer Hotel located right on West Point’s grounds, which hosts many of the company’s lectures and other events. Then there’s the retired colonel who, like me, taught on the West Point history faculty. He’s now the CEO of Battlefield Leadership, which helps corporate leaders “learn from the past” in order to “prepare for an ever-changing business landscape.”

A CLASS-WIDE CONFLICT OF INTEREST

Don’t for a moment think these are all “bad” people. That’s not faintly my point. One prominent ’86 grad, for instance, is Lt. Gen. Eric Wesley, the deputy of Army Futures Command. He was my brigade commander at Fort Riley, Kansas, in 2009 and I found him competent, exceptionally empathetic, and a decidedly decent man, which is probably true of plenty of ’86ers.
So what exactly is my point here? I’m not for a second charging conspiracy or even criminal corruption. The lion’s share of what all these figures do is perfectly legal. In reality, the way the class of ’86 has permeated the power structure only reflects the nature of the carefully crafted, distinctly undemocratic systems through which the military-industrial complex and our political world operate by design. Most of what they do couldn’t, in fact, be more legal in a world of never-ending American wars and national security budgets that eternally go through the roof. After all, if any of these figures had acted in anything but a perfectly legal fashion, they might have run into a classmate of theirs who recently led the FBI’s corruption unit in New Jersey—before, that is, he retired and became CEO of a global security consulting firm. (Sound familiar?)
And that’s my point, really. We have a system in Washington that couldn’t be more lawful and yet, by any definition, the class of ’86 represents one giant conflict of interest (and they don’t stand alone). Alums from that year are now ensconced in every level of the national security state: from the White House to the Pentagon to Congress to K Street to corporate boardrooms. And they have both power and a deep stake, financial or otherwise, in maintaining or expanding the (forever) warfare state.
They benefit from America’s permanent military mobilization, its never-ending economic war footing, and all that comes with it. Ironically, this will inevitably include the blood of future West Point graduates, doomed to serve in their hopeless crusades. Think of it all as a macabre inversion of their class motto in which it’s not their courage but that of younger graduates sent off to this country’s hopeless wars that they will never allow to “quit.”
Speaking of true courage, lately the only exemplar we’ve had of it in those wars is Gen. “Pat” White. It seems that he, at least, refused to kiss the proverbial rings of those Mafia men of ’86.
But of course, he’s not part of their “family,” is he?
*  *  *
Danny Sjursen is a retired U.S. Army major and former history instructor at West Point. He served tours in Iraq and Afghanistan, and now lives in Lawrence, Kansas. He has written a memoir of the Iraq War, Ghost Riders of Baghdad: Soldiers, Civilians, and the Myth of the Surge, and his forthcoming book, Patriotic Dissent: America in the Age of Endless War, is available for pre-order. Follow him on Twitter at @SkepticalVet and check out his podcast "Fortress on a Hill."

Friday, April 24, 2020

"The Ripple-Effects Of The Government Lockdown Are Only Starting To Take Shape..."

Via Doug Casey's InternationalMan.com,

David Stockman on the Real Reason Why the Government Shutdown Caused an Economic Collapse

International Man: Is the government’s reaction to COVID-19 worse than the virus itself? What are your thoughts?
David Stockman: I think for once, Donald Trump was right when he worried out loud the other day that the cure may be far worse than the disease.
Governors - mostly Democratic governors and mayors of major areas of the country - have imposed Lockdown Nation. It's a complete economic disaster.
It's a wrong policy from a public health point of view and an economic point of view.
It is hitting, like a ton of bricks, a highly fragile and vulnerable economy that was living hand to mouth anyway because of the kind of highly counterproductive monetary and fiscal policies and debt build-up we've had over the last 30 years.
If you look at the data for New York—which is the epicenter of the whole COVID-19 pandemic—it is abundantly clear that COVID is not some kind of latter-day Black Death plague that takes down the young, the old, the healthy, the sick, and everyone in between.
It is a kind of super winter flu that strikes fatally, almost entirely, the elderly population that is already afflicted with many life-threatening medical conditions—or what the technicians call comorbidities.
The shutdown, which I call the "plenary lockdown policy," is wrong. Closing all the businesses except a tiny, arbitrary set of essential operations is courting disaster for no good reason.
Here's what the New York data showed us recently.
New York is ground zero and the epicenter. But if you look at the breakdown of that number by age and by medical condition, it's startling.
For those under 50 years of age in the state of New York, the death rate is slightly under 5 per 100,000.
That isn't a disaster. That isn't a plague or a calamity.
Five per 100,000 is half the rate of suicides per 100,000 annually among the 50 and under population. It is a small fraction of the 90 deaths per 100,000 annually that occur for all kinds of reasons: accidents and illnesses—including suicide.
You would not, in the slightest, in any kind of sane world, shut down an entire economy and lock down everything when you have a 5 per 100,000 death rate for the overwhelming share of the population.
On the other hand, if you look at the population 80 years and older in New York state—the death rate is 1,086 deaths per 100,000. In other words, it's night and day.
The virus is not a fatal problem for the overwhelming share of the population.
Lots of people get infected. Most are asymptomatic. Some get sick and stay in bed for a couple of days, and they recover. A tiny fraction of the under-50-years population gets seriously ill and is hospitalized for treatment, and an infinitesimal number end up as fatalities. That's the case for the healthy population under 50.
It's in the over-70 age group, and especially in the over-80 age group, that the overwhelming share of these severe cases has developed.
The strategy shouldn't be a plenary lockdown. The right approach is to trace, identify, isolate, support, and treat the vulnerable population that already has many illnesses.
If we look at New York again, of those deaths among the elderly population, 60% had hypertension or high blood pressure, 31% had diabetes, etc. All of them, almost overwhelmingly, had one, two, or three comorbidities.
We don’t need Governor Cuomo to shut down the state. We need Governor Cuomo to tell the health department to mobilize the doctors and the healthcare apparatus of New York to identify the vulnerable elderly population. This population is already being treated in many cases for serious respiratory problems, heart ailments, and other diseases—and we are making sure that they’re as isolated and protected from this bad winter flu as they possibly can be. 
It’s not merely a matter of degree. It’s that they’ve got it ass-backward. 
You don’t lock down the population. You target the sub-population, the small minority of very vulnerable people, and do everything you can to shield them from this virus until it passes into the summer temperatures and the normal herd immunity that eventually will make it go away.
International Man: Those are excellent points. That’s not to mention that in the US, two out of three Americans are overweight or obese and have a pre-chronic or chronic condition. And of those people, the risk goes up substantially for those who have two or more conditions. It puts them at higher risk for something like COVID-19 to take them down.
David Stockman: I think that’s true, but even if you look at the New York data, again, it’s startling.
For the under-50-year-old population, I can’t emphasize it enough—it’s 5 per 100,000. That’s a rounding error in the scheme of things. 
You can’t run a society based on the risk of 5 out of 100,000 people. 
So, I think you’re hitting it right on the head.
What we need to think about is how much longer—and we’re not talking about months and quarters, we’re talking about days and weeks—we can possibly stand a shutdown that has already put 22 million people on unemployment claims in four weeks.
Let’s compare this to the worst four weeks of the Great Recession, which is the worst economic calamity that we’ve had since the Great Depression.
During the worst three-week period in the winter of 2008/2009, the cumulative new unemployment claims were 2.7 million, not 22 million. So, this is eight times worse.
We might add that it’s going to be 30 million, or close to that, very soon. 
We have an economy that’s in free fall, unlike anything we’ve ever seen before, and we have a government that’s in total hysteria, trying to compensate for the economic collapse that is being ordered by the government itself. 
What I’m talking about is the Everything Bailout that was signed without a record vote in the house, with no hearings—$2.2 trillion, on top of two or three other bills that had passed earlier. There’s another trillion that they’re talking about in the pipeline as a sort of a replenishment bill.
Even beyond that, then they’re talking about a stimulus and infrastructure bill, where the bidding starts at $2 billion. It is insanity. 
Let’s just look at what’s happening in the here and now.
What the government is trying to do is hold everyone in America harmless, and every business in America harmless, for the massive dislocation, disruption of business cash flow, and interruption of paychecks that have resulted from these lockdown orders. 
Where is it taking us? 
This year alone—and these are not my numbers; they come from the most credible Washington DC agency, which I’m a part of, The Committee for a Responsible Federal Budget. That’s kind of an oxymoron, but it exists.
They had projected that during the fiscal year underway—which was half over before the whole COVID lockdown even got started—that the deficit is going to total $3.8 trillion. 
I’m not talking about total spending. I’m talking about just the deficit. It’s roughly 19% of GDP.
It’s a deficit in the same order of magnitude as we had during the darkest days of World War II. During that time, the whole economy was producing military material and weapons, and nobody could spend any money on anything except necessities because everything else was rationed or wasn’t being produced. So they bought a lot of government war bonds.
So where we are right now, suddenly, overnight, is in a disastrous fiscal situation. 
This self-inflicted shock has transformed the Trump-Republican trillion dollar per year deficits at the top of the business cycle.
It has transformed a terrible situation into a catastrophic situation, where they’re going to borrow $3.8 trillion this year alone. The number for fiscal 2021—which starts in October—is going to be another $2.5 trillion at minimum, or probably more. 
Now the reason I bring this up is because we’re looking at a two-year period in which the combined deficits are likely to exceed $6 trillion in two years. These numbers are so humongous that they’re almost impossible for ordinary people—or even people who study this subject regularly—to grasp.
I think the best way to look at it is to see that $6 trillion of new debt in two years is equivalent to what it took 213 years and 43 presidents to produce—that’s how long it took to get to the first $6 trillion of public debt. 
That’s how bad this has gotten, and it will destroy any remaining semblance of market capitalism we have in this country. 
When you have a coast-to-coast soup line, with the government underwriting 100% of what everybody was getting in January 2020 by merely piling it onto the public debt, and then having the Fed printing money to fund it, you’re asking for a calamity—a financial and economic disaster of biblical proportions.
*  *  *
The ripple effects of the government lock down are only stating to take shape. That's not to mention the unprecedented amount of money the that is being pumped into every corner of the economy by the Federal Reserve. The consequences of which could be crippling to the the average person. That's exactly why Legendary speculator Doug Casey and David Stockman have just released this urgent new video which outlines exactly what's happening and how it will impact retirees, savers, and investors. It reveals what you could do to prevent becoming financial roadkill. Click here to watch it now.