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The Carlyle Group
by Victor Thorn,
A few weeks ago, James Baker publicly offered advice to the Bush Administration on how they should proceed with their war on
If you're not familiar with them, the Carlyle Group has become a powerhouse in affecting the direction in which our foreign policy takes, especially in regard to war. They accomplish this by hiring former government officials, then investing in private companies that are subject to government change (i.e. the military and telecommunications). Who, you may ask, do they employ to secure their government contracts? Well, check-out this list for starters:
Frank Carlucci | - | Department of Health, Education and Welfare - 1970's |
George Bush | - | CIA Director - 1976-77 |
James Baker | - | Chief of Staff - 1981-85 |
Dick Darman | - | Former White House Budget Chief |
William Kennard | - | Former Head, FCC |
Arthur Levitt | - | Former Head, SEC |
John Major | - | Former |
Fidel Ramos | - | Former Philippine President |
Afsaneh Beschloss | - | Treasurer & Chief Investment Officer of the World Bank |
Anand Panyarachum | - | Former President, |
Karl Otto Pohl | - | Former President, Bundesbank |
Louis Vuitton | - | French Aerobus Company |
Park Tae Joon | - | Former South Korean Prime Minister |
Alwaleed Sin Talal | - | Saudi Arabian Prince |
George Soros | - | |
Fred Malek | - | George Bush Sr's campaign manager |
There is also one other "family" that invested in the Carlyle Group, but I'll keep that as a surprise for next week's article. In the meantime, take a look at that list. It's like walking onto a baseball field and having the New York Yankees behind you. The best team money can buy! And I didn't even mention all of the players. Carlyle also employs the former chairman of BMW and Nestle, is interviewing former
But the man that really brought it all together is Frank Carlucci, who holds directorships on such companies as General Dynamics, Westinghouse, the Rand Corporation, and Ashland Oil, plus sits on the board of directors of twelve other companies. Carlucci was also the college classmate of someone very closely related to our current administration's War Machine - Defense Secretary Donald Rumsfeld! What relevance does this association have you may wonder? I think it is of great importance, for in February, 2001, Carlucci and Vice President Dick Cheney met with Donald Rumsfeld when the Carlyle Group had several billion-dollar defense projects under consideration. (If you haven't guessed, the Carlyle Group fared quite well when all was said and done.) Do you still think these ties don't matter? Philip Agee, in his book "On the Run" details all of Carlucci's CIA connections, many of whom he hired (along with his Pentagon cronies) when he joined Carlyle in 1989. (And all of us know what influence the CIA has, don't we?)
A former Carlyle employee honed-in on these dynamics when he said, "The firm understands that having Bush and Major is like having movie stars around."
It's all about power and access, folks, as Oliver Burkeman and Julian Burger pointed out in "The Guardian" on October 31, 2001. "Carlyle has become the thread which indirectly links American military policy in
Is the picture becoming clearer? Now we're getting to the bottom of
Dan K. Thomasson, former editor of the Scripps Howard News Service, summed it up best in March, 2001. "Nothing in recent history seems to approach the success this group has had in the wholesale conversion of former high government rank to gigantic profits."
Peter Eisner, Managing Director of the Center for Public Integrity, adds, "It should be a deep cause for concern that a closely held company like Carlyle can simultaneously have directors and advisors that are doing business and making money and also advising the President of the
The Washington Business Journal simply says, "The Carlyle Group seems to play be a different set of rules."
But who is the Carlyle Group? Well, their office is located only a few blocks from the White House, and it was founded by three men:
· David Rubinstein - aide in the Carter Administration
· Bill Conway - Chief Financial Officer at MCI
· Dan D'Aniello - financial executive at Marriott
They named their group "Carlyle" after a
But how did they become so successful so quickly? I'll let the Carlyle Group's company brochure answer that question: "We invest in niche opportunities created in industries heavily affected by changes in government policies." Stated differently, the Carlyle Group buys what it knows best - companies regulated by the government. In fact, 2/3 of their business is either in the defense or telecommunications industries ... those affected by changes in government spending or policy!
And how do they affect these policies? It all revolves around ACCESS! That's the key. Basically, they operate within what is called the "Iron Triangle" - industry, government, and the military. A spokesman for Oklahoma Representative J. C. Watts understood this connection when he said, "Carlyle's strength was within the Department of Defense because they have staff types that work behind the scenes, in the dark, that know everything about the Army and Capitol Hill."
Charles Lewis, ex-Director at the Center for Public Integrity, adds credence to this argument. "Carlyle is as deeply wired into the current administration as they can possibly be."
On May 5, 2001, the New York Times described the Carlyle Group as such: "It owns so many companies that it is now in effect one of the nation's biggest defense contractors and a force in global communications. Its blue-chip investors include major banks and insurance companies, billion dollar pension funds and wealthy investors." Hmm, they have a firm, controlling grip on both the War Machine and the media ... convenient, don't you think?
After reading how deeply established they are as "Insiders," do you think that the Carlyle Group has America's best interests at heart, or their own which entails capitalizing on war? An excellent example can be found in the recent $470 million contract that "United Defense," a Carlyle subsidiary, received. And what did they get it for? To develop the CRUSADER, which is such a faulty, antiquated, horrendous product that it was described by Eric Miller of "The Project on Government Oversight" as follows. "The Crusader has been the GAO's (Government Accounting Office) poster child for bad weapons development." The Crusader Project was so maligned that the government was set to drop it completely. But lo and behold, what happened? War was on the horizon, Carlyle pulled a few strings, and welluh - a $470 million contract is thrown Carlyle's way for the Crusader. Funny how things happen, huh?
If that's not bad enough, the Carlyle Group is also the financial advisor to a certain government. Who?
If you ask me, we've entered very treacherous waters, all for the sake of making money off of warfare. Regardless of what they say, these men in the Carlyle Group epitomize a very nefarious form of evil via their actions.
Copyright © 2002 Babel Magazine
Reprinted for Fair Use Only.
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