Showing posts with label Arizona Politics. Show all posts
Showing posts with label Arizona Politics. Show all posts

Wednesday, November 11, 2009

Exploring Obama’s Ownership of Massive Economic Problems

By persistent obstructionism and using endless false information, the GOP pulled off some big wins in the 2009 elections. Worse still, they have been able to convince people that Obama has handled the economy badly. The YouGov poll shows that 47% disapprove of Obama’s handling of the economy, while 43% approve. The biggest problem is that the independents who supported Obama are deserting in big numbers. One reason for this is that unemployment is getting worse, and is now at 10.2%, somewhere around 17% when we take into account all the gimmicks that are employed to keep the figure artificially low. We think that it will be 9.5% next November, around 15% in real terms. That does not bode well for the Democrats in next year’s elections.

Republican politicians and pundits as well as mainstream media types repeatedly say that President Barack Obama now “owns” the bad economy. Likewise, they say that he “owns” the grim situation in Afghanistan. The fact is that both are the result of eight years of Republican bungling. Despite our long-time national faith that progress is inevitable and to be expected to occur quickly, the fact is that we are now looking at some intractable problems.

The more astute Republican spokesmen concede that the downturn began under Bush but insist that Obama should not have sought the presidency if we was unable to administer a quick fix. That they are justified in blaming Obama for lost jobs and the slow recovery. Their false assumption is that all recessions are the same and can be fixed easily.
John Boehner, the typical Republican spokesman, continually asks “Where are the jobs?” thought there has not been enough time for Obama’s policies to work. Then he says that all the stimulus money has been spent and has accomplished nothing. The fact is that $500 billion still has not been committed and much of the remainder is just getting into the pipeline. Republicans have vastly inflated the amount of debt incurred under Obama. The amount of the Stimulus was $787 billion, but the Republicans have been saying it was $ 1 or 2 trillion and no one corrects them.


Obama’s policies saved us from another depression. Yet he is being blamed for not working miracles. He inherited the worst sort of recession---one with very high unemployment , which is followed by very slow recovery of jobs. The financial system he inherited is a basket case,, and it will take years to fix it.

Republican politicians and pundits as well as mainstream media types repeatedly say that President Barack Obama now “owns” the bad economy. Likewise, they say that he “owns” the grim situation in Afghanistan. The fact is that both are the result of eight years of Republican bungling. Despite our long-time national faith that progress is inevitable and to be expected to occur quickly, the fact is that we are now looking at some intractable problems.

The more astute Republican spokesmen concede that the downturn began under Bush but insist that Obama should not have sought the presidency if we was unable to administer a quick fix. That they are justified in blaming Obama for lost jobs and the slow recovery. Their false assumption is that all recessions are the same and can be fixed easily.
John Boehner, the typical Republican spokesman, continually asks “Where are the jobs?” thought there has not been enough time for Obama’s policies to work. Then he says that all the stimulus money has been spent and has accomplished nothing. The fact is that $500 billion still has not been committed and much of the remainder is just getting into the pipeline. Republicans have vastly inflated the amount of debt incurred under Obama. The amount of the Stimulus was $787 billion, but the Republicans have been saying it was $ 1 or 2 trillion and no one corrects them.
Only in the United States, among advanced countries, would a president and his party be punished for heading off a depression and not producing a impossible economic miracle. That is because the level of our political discourse is so low, our voters so uninformed, and our MSM so unprofessional.
No wonder the GOP chants “Where are the jobs?” and complains that Democrats are playing dirty pool by blaming Bush and the Republicans for the terrible problems they created.

Democrats must take a cue from the “Obama owns it” argument to start educating the public in basic economics. The main line should be that the Republicans offer no plan other than tax cuts for the wealthy. We have a plan, and it is beginning to work. It may not create jobs as quickly as we want because the problems are rooted in a system the GOP created and defended. Obama inherited an economic and financial system the GOP created to benefit powerful interests and shift wealth to people in the top 5%. They must hammer away at the fact that the ordinary guy has not had an improvement in real wages in twenty years because of Republican policy. Yes, some Democrats helped them along, but those folks are now becoming contrite. We need proposals for reforming our economy and economic system to make them serve ordinary people. Banks should be prohibited from gambling with our savings. Insurance companies gambled away reserves built on the premiums we paid. Then they got state insurance commissions to grant huge increases in premiums that should be fixed. We need a plan to gradually carve up the banks that are too big to fail.


Susan Jacoby noted that it was not the secrecy surrounding the Clinton health care plan that accounted for its demise. Rather, the Democrats had failed to prepare and educate voters on what the Clinton plan would involve. They should have anticipated simplistic Republican complaints and lies and used facts to help voters see through Republican appeals to emotions and fear. With little good information at their disposal, many average Americans believed the Harry and Louise claims against Clinton care. Now people are believing the wild claims about “socialism,” losing their liberties, and Democrats ruining the economy because they have almost no conceptual framework with which to view the economy. If Democrats do not start educating the public about economic matters, the GOP, with the help of the media, will spin these situations in such a way that many voters will conclude that President Barack Obama created the bad economy and Afghan War.

If Republicans can blame economic problems on Democratic spending, they will have a leg up in their efforts to launch another attack on entitlements. By next year, our debt will be larger and could be a major political issue. Democrats need to explain how it got so large and to tie some of it to recent military adventures. There are signs that the Obama administration is open to reform” as a means of reigning in debt. That term has the same meaning as the IMF’s favorite term, “structural adjustment,” which means making the little guy pay for the mistakes of others farther up the food chain. We may have to swallow some entitlement reduction, but it should not take place without an end to the Bush tax cuts and the institution of excess profits taxes on the energy industry and on any firm’s transactions in hedge funds and derivatives.

It’s a tall order, but if Democrats do not begin to educate voters now, they could lose control of the House of Representatives next year. It will be hard to get people to think seriously about the economy and stop thinking about it in child-like terms. But more people are hurting now, and they may be ready for a little meat rather than economic pablum. The object should be to staunch the erosion of public support and regain some among people willing to think a bit.
Democrats will need to learn a few things about message control and to draw upon the expertise of people in cognitive science like George Lakoff. If Democrats cannot seize the initiative in the national discourse, we could well see a president Sarah Palin and a cabinet stuffed with tea baggers like Dick Armey in 2013.

Sunday, October 11, 2009

An Afghan Quagmire in the Making : Considering the Options

We are mourning the loss of eight American soldiers who died in a day-long battle near the Pakistan border. They were killed by a well armed force that dwarfed them in size. Their mission was to try to stem the flow of Pakistani Taliban fighters over the border to join their allies in the Afghan Taliban. Indeed, a number of the fighters were Pakistani Taliban expelled from the Swat Valley by Pakistan’s army.

The guerilla force that confronted the Americans numbered about 300. In Iraq, the guerilla forces seldom exceeded 30, with the possible exception of the fighting in Falluhah.

Now we are facing the decision of whether to send in many more troops to continue a policy of nation-building and providing population security. The situation in Afghanistan is enormously complex, and there clearly is no easy resolution or way out.

Lieutenant General Stanley McCrystal has warned Washington that we are losing in our battle against the Taliban and other insurgents in Afghanistan. He has called for an additional 10,000 to 40,000 troops, and he has the backing of his very popular boss, General David Petraeus. There is a parallel to the “clear and hold” strategy employed in Vietnam, but McCrystal would be more careful with firepower and more interested in economic development.

During the campaign, Barack Obama sought to show that he was strong on national security by saying that Afghanistan was the necessary war. Now those remarks are haunting him as he ponders the sad history of foreign involvements in Afghanistan and our unpromising situation there now. Much of latter was due to the policies of the Bush Administration, but voters have short memories, and Obama will pay for lack of success in Afghanistan. Not long ago, Obama once referred the Afghanistan effort as “a necessary war,” but he has not repeated that term. Necessary wars involve out nation’s vital interests. No vital interests are involved in Afghanistan, so this is a “war of choice.”

The fact is that preoccupation with Iraq and Afghanistan represent massive distortions of American foreign policy. Our main concerns are elsewhere. Obama needs to help our people regain a sense of perspective.

For the moment, Obama is taking time to reconsider our objectives in Afghanistan. Afghanistan has become a NATO mission, and our president would be well advised to invite NATO to join in these deliberations. Otherwise, it will appear that we are continuing the Bush policy of dictating to others. Obama was selected for the Nobel Prize in part because he turned away from unilateralism and opted for engaging our allies and others. France, Germany, and Great Britain have asked for an international conference to discuss how NATO forces can be phased out in Afghanistan. In view of the growing sentiment in Europe against the Afghanistan operation, it would be wise to learn how much support we could count on if we ramp up the effort to provide population security. Already some writers fear that extended involvement in Afghanistan could be the rock on which the NATO vessel breaks. NATO Secretary General Anders Fogh Rasmussen has endorsed Obama’s decision to review the policy and has said that it is more important to get the right strategy than to rely on putting in more troops.

Biden’s Approach

Vice President Joseph Biden, after much study and two unpleasant meetings with Hamid Karzai, has concluded that the current regime in Afghanistan will not be a reliable partner for an effort to establish security for the population in Afghanistan. Until recently, National Security Advisor James L. Jones appeared to agree. Biden’s view is that the US needs to focus less on Afghanistan and more on Pakistan, where Al Qaeda is and where instability makes that nation’s nuclear weapons a potential problem.

Biden suggests ramping down the counter-insurgency effort and focusing on damaging Al Qaeda, partly through Predators and air power. Spies and Special Forces and other black ops would also be involved. The US will be able to continue its drone air strikes in the Federally Administered Tribal Areas, but it is doubtful that Pakistan can permit the US to bomb Taliban sites in Quetta, capital of Baluchistan province. We can be of greter help to the Pakistanis as they are finally going against their own Taliban. At the moment, they are preparing an offensive in Waziristan.

Of course, the US will need enough stability in some parts of Afghanistan so they can be used as bases to launch all manner of assaults against Al Qaeda. In the long run, it is doubtful that we can put Al Qaeda out of business, but we should make it out top priority inflicting as much damage as possible.

There are signs that some of the insurgents are amenable to negotiations, and it is possible that money and diplomacy could accomplish with them what more troops may not. There are now pilot efforts to negotiate with and build up the forces of some warlords. In some ways this more parallels what the surge was all about in Iraq than manipulating the number of troops on the ground.

Of course, the Biden plan would not stop the training and recruitment of Afghan soldiers and police. It should include giving the army better equipment. Much more attention must be given to rapidly enlarging and retraining the Afghan military. At this point, it has a 24% defection rate. Soldiers even take weapons home and sometimes continue to receive pay. Much needs to be done building a centralized police force. The fact that Taliban fighters could get attack the Indian Embassy in Kabul underscores the dimensions of this problem.

In the last analysis, preventing a Taliban victory in Afghanistan is out of our hands. It depends upon what the people think of the Karzai regime and the extent to which the Afghan police and army can be effective.

Should the Al Qaeda reenter Afghanistan, we would have no choice but to resume round-the-clock carpet bombing of areas where they establish bases. Taliban leaders remember the bombing and realize that it would be repeated should they assist Al Qaeda establish camps and bases in their country.

Republicans Demand Escalation of the Afghanistan War

With the remarkable exception of George Will, Republicans back the former Special Forces commander. They stand to gain no matter what Obama does in Afghanistan. If more troops are sent, and there is still failure of stalemate, they still win big time. Few will remember that John McCain and others beat the drums for more troops and a long war.

A common argument is that any backing away from an all-out effort will give Al Qaeda new energy and attract more recruits to their standard. In truth, American policy in Iraq and our tactics in Afghanistan, which harmed many civilians, were responsible for recruiting people for the Taliban and Al Qaeda. Sami Yousafzai’s interviews of Taliban people in the current Newsweek demonstrates how Bush Administration tactics alienated many and strengthened the Taliban. It is unlikely that the salutary change in course under General McCrystal can reverse the damage. Moreover, his turn toward the exercise of soft power -- economic and social development-- is all to the good, but this policy will require more time than we have. It can be recalled that it took John Paul Vann many years to work economic and social miracles in the Mekong Delta.

We frequently hear that anything less than a ramped up war in Afghanistan will damage U.S. credibility abroad. There may be some truth to this. Certainly other nations will not doubt that we have the ability to go anywhere and bring about massive destruction when we do not get our way. The real question should be “Does our national interest require expenditure of a great deal of blood and treasure in Afghanistan? “

A similarly weak argument is that we must prevent Afghanistan from becoming a failed state so that Al Qaeda will not use it as a base of operations. This wrongly assumes that there are no other failed states Al Qaeda can use as a base. Moreover, the terrorist organization appears to be unhampered in its operations in Pakistan. As General Jones has admitted, there is no reason why the Taliban would want to leave. He claims there are less than 100 Al Qaeda in Afghanistan.

Republicans could argue that the long term morale of our armed forces could be adversely effected if we did not escalate and then “win” in Afghanistan. The Vietnam War was devastating, and it took a long time for our military to restore its spirits. Right now, the military seems to be thinking in terms of “winning” and “loosing.” Its leadership should be educating our forces to think in terms of accomplishing limited goals.

Republican columnist Michael Gerson eschews the most simplistic arguments and admits the complexity of the situation in Afghanistan. Still, he senses that Obama is in a no-win situation. Gerson redefines the civilian-military relationship a bit by insisting that suggesting that tradition demands that Obama select his best general and get out of the way. He even mentions Harry S. Truman in this respect, though the use of that precedent can be debated. In the end, Abraham Lincoln accepted U.S. Grant’s meatgrinder approach, but he had been involved in many military decisions throughout the war. Another way to look at this is to recall that Lincoln bucked the popular George Mc Clellan and that Truman sacked th4e very popular Douglas Mc Arthur.

One can only wonder if any of the critics are concerned that the US be in a position to construct the long-desired twin pipelines down through Afghanistan to carry Caspian gas and oil to Pakistan and , by ship , to India. This was the object of a great deal of diplomacy before 9/11, and the Bush administration even resorted to the threat of bombings. The pipelines are in our national interest but it is doubtful if soldiers should lose their lives to get them.


Another Surge?

Those who insist that Obama bow to Petraeus and McCrystal is that they think that copying the surge strategy in Afghanistan will work. The surge worked best in the urban areas of Iraq, and there are few urban areas in Afghanistan. The surge also worked in Iraq because the United States literally bought off its enemies, paying large amounts to tribal leaders and monthly stipends to their armed retainers. Only Bob Woodward has openly discussed another reason why the surge worked. Special Forces in Iraq, under McCrystal, carried out something like the Vietnam War’s Operation Phoenix and eliminated thousands of the insurgent cadre.

Repeating some version of Phoenix in Afghanistan does not require a huge increase in American forces there. Over seven years, we have spent $38 billion in Afghanistan, with few discernable positive results. Perhaps more of the money sent there should be used to buy off warlords and put their troops on retainer. Its worth a try.


Should We Bet on Karzai?

We still come down to whether a large new commitment in human lives, money, and American prestige should be made in Afghanistan. Many Afghans believe that the present regime is hopelessly corrupt. The recent rigged election of August 20 is one indication of how weak the Karzai regime is. The UN found that one third of the votes cast for Karzai were fraudulent. The resultant acrimony has been so great that it is unrealistic to believe that Afghans can be unified around Karzai—no matter how many troops we send there. Karzai has not bothered to denounce those who rigged the election on his behalf. His reliance upon war lords and human rights abusers is not likely to win new grassroots supporters. Of course, policy makers recall that in Vietnam the elimination of the corrupt Ngo Dinh Diem resulted in even worse leaders.

The idea that we can, using soft power, somehow win over large numbers of Karzai opponents to support him is fanciful. The counter insurgency strategy has been based upon the idea that we could eventually build a large and effective Afghan army and matching police force. The Afghan army stands at 94,000 and has had a little success in the north. It will take two years to increase it to 134,000. That is still far short of the 300 or 400 thousand that are needed. Who can remember that there were 91,000 when George W. Bush began to rebuild the army. A rational person would look at these figures and conclude that Bush either the Republican administration had done poorly or it was unrealistic to expect rapid growth of that force. Our problems began when the Bushies somehow bungled the effort to nab Osama and then pulled out our most effective people so they could begin their adventure in Iraq. Any way you look at US policy there under Bush, it is impossible to conclude that anything was accomplished. Obama inherited a ticking time bomb but don’t look to any Republican politician or publicist to mention this. The truth is that it could be too late to do much there.

There is also the lesson of Vietnam, where we did build a large, well-equipped ARVIN force that was ineffective and heavily infiltrated by the enemy. There were also many “potted plants,” units that existed on paper but not in reality.

Unless Karzai abandons brutality and corrupt practices overnight and becomes a Boy Scout, the prospects of bringing much stability to Afghanistan are slim. The man is a Pashtun and that should have helped him with the nation’s largest ethnic group. Instead, the Taliban, also largely Pashtun, have been able to play on Pashtun nationalism to enlist support.

Effectively ending with Taliban jihadism may be beyond our ability. The Afghan Taliban practices jihad but only locally. They are only a threat to the United States unless they could again provide Al Qaeda with a base of operations. However, there is no reason for Al Qaeda to leave the Waziristan area of Pakistan, where they have the run of things and even have located families there. Though the Taliban previously sheltered Al Qaeda, many Taliban are not warm friends of the Arab-led terrorists, and it is possible that clever intelligence people could drive a wedge between them. It should also be remembered that many who call themselves Taliban in Afghanistan are simply insurgents capitalizing on that name. Many of them can be bought off.

The Pakis Will Play a Double Game

Pakistan will continue playing a double game—doing enough to get aid while keeping the Afghan Taliban alive. The best we can do is induce them to do more for us. Our primary goal there is to foster enough stability in Pakistan to keep the jihadists from getting their hands on the nation’s nuclear assets. That is no small job.

The Pakistani Army, though secular, long ago resorted to sponsoring Islamic jihadism as a means of countering Indian power. They built jihadist movements to threaten India in destabilizing Kashmir. In time, a jihadist opposition emerged in Pakistan itself, and the army officer corps now must deal with the fact that religious fanaticism has infected more than a few junior officers. Because Pakistan needs to have a strong influence in Afghanistan, Pakistani intelligence, the ISI, with the help of the United States, in the late 1970s and eighties, nurtured jihadism in Afghanistan. Many in Pakistan’s ISI—once closely tied to the CIA-- are not inclined to do anything to injure the Afghanistan Taliban, and they believe that United States will not be in Afghanistan indefinitely.

The only vital interest we have in the region is preventing the destabilization of Pakistan.
In part, that is because they have nuclear weapons. We would not want those weapons or that technology to fall into the hands of terrorists. There is little we can do directly to improve the situation in Pakistan. Until a month ago, we were spending 33 times as much in Afghanistan as in Pakistan. We have recently tripled what we spend in Pakistan, but more must be done. How we do it is ticklish. The Pakistan military loudly objected to the wording of our recent aid bill because it set performance standards for receiving installments of aid. Recently, five Taliban fighters entered the military headquarters in Rawalpindi, killed some soldiers, and held 22 people as hostages. Until recently, the Taliban controlled the Swat Valley, an important district.

Unless Pakistan can be induced to stop its help of the Afghan Taliban, a US counter insurgency program will require far more troops that McCrystal is now requesting. Afghans in the south and east already see the US as an occupying power, and the presence of more troops is certain to deepen that impression in those places and possibly spread it to the rest of the country. The Mc Crystal strategy would be an occupation, and foreign occupations of that country since the time of Alexander the Great have been failures. Simply put, occupations breed angr, and long occupations breed still more anger and violence.

In retrospect, it appears that most of the billions poured into Afghanistan were a poor investment. One leading member of Karzai’s coalition said he will withdraw if more American troops are committed. This man is an American ally but thinks that more troops would mobilize more people against the government.

Too much was filtered through foreign contractors. The money would have been better spent buying off the Pakistan generals and ISI and bringing greater political stability to Pakistan. Fortunately, Congress has just tripled its appropriation for Pakistan; but the amount is still relatively small.

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The Obama Administration wisely ended its war against the farmers growing poppies. It might be worthwhile to buy and destroy the Afghan opium crop. Using last year’s data, that might cost as much as $3.4 billion. This would not stop the Taliban from collecting taxes on it, but destruction of the whole crop would prevent the Taliban from moving large quantities of opium to the international market. That would cut their income by a third.

The situation in Afghanistan is very complex and unpromising. There are variables that the American public does not perceive. Do they know that many Afghans speak Persian and that they are strongly influenced by Iran? The latter could make things even worse for us but it has no reason now to want an unstable Afghanistan. Our dealings with Iran can impact upon what goes on in Afghanistan. By appearing to be more reasonable than Bush, President Obama has obtained some important concessions from Iran and may be able to do more. If Israel were to move against Iran, we could expect Iran to use its influence against us among its Afghan clients.


Richard Holbrooke has given us an idea of how bad the situation in Afghanistan is: “Its worse than the Nam!” It is very important that the American people understand what is involved here because a decision to make a long term commitment to pacification and nation-building will require years of commitment, massive amounts of money, and far more troops than we are now contemplating. Even with all that, there will be no guarantee that we can succeed in building a stable nation there. That is why House Minority Leader John Boehner is so angry that President Obama wants to take time making this decision. John Mc Cain has been busy claiming there is no difference between the Taliban and Al Qaeda in an effort to stampede Obama into waging a full scale war. If thoughtful independents come to understand much of what is involved, they might support Obama in redefining the mission there. Information is, as usual, the enemy of Republican policy here. The more people understand, the less damage Afghanistan will inflict on Obama’s political future.

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A Plug for Sherm’s Book
Sherm spent seven years writing an analytical chronicle of what the Republicans have been up to since the 1970s. It discusses elements in the Republican coalition, their ideologies, strategies, informational and financial resources, and election shenanigans. Abuses of power by the Reagan and G. W. Bush administration and the Republican Congresses are detailed. The New Republican Coalition : Its Rise and Impact, The Seventies to Present (Publish America) can be acquired by calling 301-695-1707. On line, go to http://www.publishamerica.com/shopping. It can also be obtained through the on-line operations of Amazon and Barnes and Noble. Do not consider purchasing it if you are looking for something that mirrors the mainstream media!

Wednesday, October 8, 2008

Mc Cain, "The Keating Five," and Lobbyists

John McCain's life is anything but the "open book" he claims it is. Central to his political life was his deep involvement in the "Keating Five Scandal."
The story begins with colorful information on the role of organized crime in Arizona and Mc Cain’s ties to it. Kemper Marley was the big man in Arizona at the time. He was the protégé of Sam Bronfman, a close friend of Al Capone and Meyer Lansky, who visited Arizona in his company. He was also very close to Gus Greenbaum, a Lansky aide and Phoenix gambler.

Greenbaum and his wife were slain in 1948, setting off a mob war that Marley won. Marley became the state’s only billionaire. In 1948, Marley escaped prison while 52 of his prisoners went were incarcerated including henchman Gene Hensley, who would become John McCain’s father-in-law. He was general manager of Marley’s United Liquor. Hensley’s brother was a bootlegger and was also convicted. The court said Hensley must never get into the liquor business again, but when he got out he received a big Budweiser distributorship. Hensley also made money in dog racing, but sold his track to the Jacobs family of Buffalo. They were also linked to the Bronfman booze empire of Canada and the Lansky interests.

Marley headed the Valley National Bank, which lent Meyer Lansky’s man, Bugsy Seagal, the money to build the Flamingo casino . Seagel was killed for stealing from his bosses, and his nationwide gambling wire was turned over to Marley.

Marley ( d. 1990) was very generous with the Republican party and also controlled the Arizona Democrats. Many in major office there owed their jobs to him. Marley’s men included Dennis De Concini, a Democrat, and John McCain

Arizona Republic investigative reporter Don Bolles was killed in a 1976 car bombing. He had investigated crooked land deals that were tied to many of the rich and powerful and had also looked into Marley’s service on state commissions. This led to a 36 member team of investigative reporters coming to Arizona. It produced investigative team coming to Arizona. It produced The Arizona Project: How a Team of Investigative Reporters Got Revenge on Deadline. They believed but could not prove that the Marley gang was behind the murder of Bolles. But they produced a great deal of information on the mob in Arizona.

Astonishingly Bolles lived for eleven days after the explosion and said: “They finally got me. The Mafia. Emprise. Find John (Harvey) Adamson." There was no effort to find out who hired the man who gave Adamson contract. Anderson he was convicted of the car bombing said the Marley gang also wanted Attorney General Bruce Babbitt killed because he wanted anti-trust action against them.

John McCain married mob heiress Cindy Hensley. From the time of his arrival in Phoenix in 1979, the Hensley family sponsored his political career. He received a $50,000 a year salary in 1982 to tour the state as a PR man for the family beer Budweiser distributor firm, but of course he was beginning a Congressional campaign. Anheuser-Bush lobbyist Richard Scheffel said that Hensley used McCain as a channel to move money to politicians.

McCain does not seem to have done anything for the mob, but he must know it was that money that fuelled his career. Must also have met some mob people In 1995, sent “Happy Birthday” wishes to Joseph Bonasno, the head of the New York Bonano mob who had retired in Arizona. From the time of his arrival in Phoenix in 1979, the Hensley family sponsored his political career. McCain recused himself on voting on alcohol matters, but as a committee chairman he used his power to their advantage by not scheduling hearings. In 1997, important hearings that were scheduled never occurred. In 1996, he pushed to normalize relations with Vietnam just as Budweiser was preparing to enter that market.

. Banker Charles Keating also got into the business of befriending Arizona politicians. He gave a $55,000 campaign contribution to Bob Corbin, a former Marley employee, who ran unopposed for attorney general. He would supervise state-chartered banks. Keating got his start as a lawyer for Carl Lindner, who made great profits from the Vietnam War. One of the nation’s wealthiest men, Lindner owned 7 S &L that were to fail. By owning United Brands, he was in a position to reap profits from the government’s secret programs to fund and supply the Nicaraguan contras through Hondouras.

Keating purchased property for his office in Phoenix from a mob-connected attorney in 1980. He had a mansion in the Bahamas, where the same attorney family had a casino.
Prudential Insurance loaned him $2 million in 1985. He had numerous dealings with BCCI, which turned out to be the bank of crooks and criminals.

Keating had invested 17.5 million in TrendInvest without notifying his American Conmtinental board. Walter Bush, cousin to the current president, was involved with Continental, which later collapsed. There were many other baffling investments. Some think he was laundering CIA money involved in its Latin American operations.

Keating had a business relationship with Hensley. Keating was good at buying political influence, and he had a ten year close relationship with John McCain, donating about $112,000 to McCain campaigns. Nine times, he paid to transport McCain’s family and babysitter to his place in the Bahamas, often on a private plane. In addition, he permitted Cindy and her father to buy into a lucrative shopping center in California. In return McCain helped him convince Ronald Reagan to deregulate the Savings and Loan industry and place a Keating friend on the board that regulated it. Deregulation was a green light for Keating to build the Phoenician, a resort, in partnership with the rulers of Kuwait. The federal government seized it in February, 1989. His bellmen were permitted to remove 24 cartons of documents.


When the Feds started investigating Keating, McCain organized the “Keating Five” senators to put pressure on the Federal Home Loan Bank board to back off. At one point McCain even demanded that the chairman of that board not participate in the investigation of Keating.


When Keating began to get into trouble and marketed $230,000,000 in bad bonds, he came up with a scheme to cover them with profits from a water scheme. He and a partner bought up a lot of water rights and then had the legislature pass a law requiring Phoenix to first buy as much water as Keating could sell before going to other vendors. They planned to pump about a million acre feet of water in a year. De Concini would also profit because he had purchased some water rights. Such a scheme could only take place in a state where the press looked the other way and the politicians were largely corrupt. The Arizona Republic and the Phoenix Gazette were owned by the family of Dan Quayle.

The Arizona House of Representatives breezed the bill through in two days, but Jerry Gilespie held up things in the Senate. He found a way to stop it dead in its tracks, but he lost his seat in the next election. No wire service reported the story but it was covered by Phoenix Magazine in 1989. This doomed Keating.


As late as May, 1988, Keating thought he had won his battle against the Federal Home Loan Bank Board. On the 20th, he threw a big party because Senators Mc Cain and De Concini, with three others, had succeeded in having the investigation of his Lincoln Savings from San Francisco to Washington. In excitement, he removed his shirt to reveal a tee shirt with a skull and bones superimposed over the letters FHLBB. He had spent a million dollars buying politicians. It looked like he had won, but he was done in when the water scheme petered out.

Keating was eventually fined 3.6 billion and sent to prison. He has been called the father of the S &L crisis. McCain was investigated by the Senate Ethics Committee and was only told he exercised “poor judgment.” Almost as soon as he saw that he had a problem, he played the role of the repentant sinner and began to create the false reputation that he was an opponent of lobbyists and the improprieties seem to flow from their involvement in public life. To convince voters that he was a different sort of politician, he started calling for campaign finance reform.

McCain went on to gin up a reputation for integrity, but, in fact, he continued to run errands for contributors. Recently, McCain denied ever meeting Lowell “Bud” Paxson, even though there was a 2002 court deposition proving they had met. This is important because in 1999, MC Cain, then chairman of the Senate Commerce Committee, pressed the FCC hard to let Paxson Communications purchase a Pittsburgh television station. The FC claimed McCain’s request seemed like a threat and believed he had crossed the line separating propriety and impropriety. The firm had donated $20,000 to McCain. The firm had provided McCain transportation on a company jet on several occasions. Very briefly, the press raised questions about his relationship with a pretty young Paxson lobbyist who was often in his company in 2000. No solid evidence of a sexual relationship was found, so the press decided not to look into the rest of the story. The fact that McCain is clearly the darling of the press could have something to do with the drying up of the entire story.

When confronted with information about his conduct in the Paxson case, McCain said he was just prodding bureaucrats and then produced documents to show he had done the same thing in other cases involving large contributors. What chutzpah!

In 1999, McCain staff twice intervened to help wealthy contributor and close personal friend Donald Diamond obtain land from closed Army base Fort Ord in California. That deal allowed him to turn a $20 million profit, and another arrangement in 2005, again with McCain help, promises to be more profitable. This involves as many as 12,000 homes and benefits more than one McCain backer. Two former McCain staffers were hired as lobbyists in this complex deal to get him aboard. Twice in the 1990s, McCain introduced land legislation to help Diamond, and a third measure is now before the Senate.

In 2001, questions were raised about legislation he backed for the cruise industry and the large contributions it gave him. There are also questions about his close ties to the cable TV industry.


Recently, it was learned that John McCain had more lobbyists working for his 2008 campaign than any other presidential candidate. Even after 6 were forced to leave due to their ties to unsavory regimes, there are 59 who do nothing but raise money. One of them is Ralph Reed, who was shown to be taking advantage of Native American clients in hearings McCain chaired! Over time, 133 lobbyists have worked for the Straight talk Express.

Others do other things in the campaign. Rick Davis is campaign manager, and Charlie Black is senior political advisor. Among Black’s clients were AT%T, Rupert Murdock, and Blackwater. Twenty-one McCain people also represented AT&T. Black had also been paid to sheppard around Ahmed Chalabi, whose distortions helped get the US to invade Iraq. Could this be connected to McCain’s view that American troops must soldier on there, possibly indefinitely.


Two lobbyists were closely tied to the mortgage industry, which could explain why McCain has been so very friendly to the same industry. Randy Scheunemann, McCain’s foreign policy analyst, has represented the Republic of Georgia, and spoke on McCain’s behalf on this issue as recently as August 17. This could explain why McCain is so hawkish about the Russo-Georgian struggle. He speaks as though he is already president, keeping force and all other options on the table.

None of this information is to suggest Mc Cain is a crook. He is obviously very closely tied to the lobbyists and special interests that he frequently complains about. He cannot claim no links to the mob. There is no doubt that he has a history of going to bat for them—sometimes appearing to go to far. He has repeatedly promised to never doing anything that gives the appearance of impropriety, but his track record is just the opposite of this.

He probably is not a crook, and Mc Cain deserves great praise for his service in the Vietnam War. But he is only mortal and has a bad track record for consistency and truth telling, despite all his self-praise about honesty.