KGB Operations Against The US

Last week, I blogged Douglas Valentine on the secret history of America’s Central Intelligence Agency, a long history that involved revolutions, coups, torture, assassinations, and subversion. Today, the CIA is probably far larger than any other spy agency, but until 1991, the Soviet Union’s KGB was a good match.  The excerpt that follows is from a face-off between former CIA counter-intelligence chief Paul J. Redmond and former major-general of the Soviet KGB, Oleg Danilov Kalugin, and was hosted by the University of Delaware on March 12, 2003.

(Note: The KGB was disbanded in 1991, following the collapse of the Soviet Union. It has been replaced by the Russia security force, the FSB).

“We conducted a clandestine war with assassination if necessary,” he [Kalugin] said. “Our mission was to do everything we could to have a war without the fighting. This was seen as amoral in America, but it was our ideology.”

Kalugin infiltrated the United States as a journalist, attending Columbia University in New York City as a Fulbright Scholar in 1958. From 1965-70, he served as deputy resident and acting chief of the residency at the Soviet Embassy in Washington, D.C., quickly becoming the youngest general in the history of the KGB. Eventually, he became the head of worldwide foreign counterintelligence, serving at the center of some of the most important espionage cases, including the Walker spy ring.

Finding that the KGB’s internal functions had little to do with the security of the state and everything to do with keeping corrupt Communist Party officials in power, Kalugin retired from the KGB in 1990 and became a public critic of the communist system. He currently teaches at the Centre for Counterintelligence and Security Studies.

Kalugin said one of his most effective spying techniques was pitting American citizens against their own government.

“We appealed to pacifists and told them, ‘You cannot have peace unless you stop the internal situation of the U.S.,’” he said. “We got environmentalists and told them, ‘Capitalists spend any amount of money even if it does destroy your precious nature.’ Well, at the time, the Soviet Union was the most polluted country in the world,” he joked.

Kalugin listed several astonishing facts from a classified KGB report, proving just how much the organization is committed to counterintelligence. He said that in 1981 the KGB reported that they had funded or supported 70 books, 66 feature and documentary films, more than 100 television stations, 4,865 articles in magazines or newspapers, 300 conferences or exhibitions and 170,000 lectures around the world.

“Friendship, companionship—that is fine,” Kalugin said, “but national interests remain. Counterintelligence will never cease to exist. The U.S. remains priority number one.”

David Tice On King World News: Trouble Ahead….

David Tice on Eric King’s King World News, December 23, 2009

  • This is not another inventory recession; this is unprecedented
  • There’s trouble all over the globe – Europe, China, Japan..
  • Hunker down, cut back expenditures, get out of stocks, own gold
  • Look for deflation followed by competitive currency devaluation, then inflation.

Ron Paul: No Military Occupation Of Haiti

Statement of Congressman Ron Paul,  United States House of Representatives Statement in Opposition to H Res 1021, Condolences to Haiti, January 21, 2010

I rise in reluctant opposition to this resolution. Certainly I am moved by the horrific destruction in Haiti and would without hesitation express condolences to those who have suffered and continue to suffer. As a medical doctor, I have through my career worked to alleviate the pain and suffering of others. Unfortunately, however, this resolution does not simply express our condolences, but rather it commits the US government “to begin the reconstruction of Haiti” and affirms that “the recovery and long-term needs of Haiti will require a sustained commitment by the United States….” Continue reading

Executive Order 12425: Interpol Brings Global Police State to US

John Whitehead of the Rutherford Institute (via Lew Rockwell) sounds the alarm over executive order 12425, which places the International Criminal Police Organization (Interpol) beyond the reach of domestic laws,  freedom of information act requests and constitutional checks.

“It’s hard to know exactly what the fallout from this executive order will be, but the ramifications for the American people could be ominous. For instance, if Interpol engages in illegal and/or unconstitutional activities against American citizens, it will be impossible for U.S. citizens to obtain information – via subpoena or other commonly used legal methods – regarding its records or activities. Continue reading

Doug Valentine On The Impotence Of Progressives

Doug Valentine offers a piece on the futility of much activism.

(Please note: The opinions in this piece are not mine. They are Doug’s. But his point was not to exclude himself or any other writer who claims to be an activist. Its something all of us feel one time or other. I know I do. Frequently. At some level, what writers do is perfectly useless and only a form of self-advancement, if that).

Why Don’t All You People Just Shut Up!

“As my friend Roger says, ‘Never have so many held Washington hangers-on office for so long and talked endlessly to each other for so much money and done so little as the Republic rotted. The utter impotence of the progressive think tanks, lobbies, etc. is a great unwritten story.’ Continue reading

More From The Easter Bunny…

I’ve been curious about the identity of the Easter Bunny, although, strictly speaking, it doesn’t affect the validity of the anti-NSS campaign.

The Bunny has zeal. Bunny-speak is brave, plain-spoken and easy to read:

The SEC was created to reassure the unwashed masses that it was safe to invest in the markets, after the Great Crash of 1929 proved it was anything but. It was a PR firm for Wall Street, slipped through as an alternative to a regulator who would or could actually do anything to curb the real crookery on Wall Street. At the helm was one of the greatest stock manipulators of all time, Joe Kennedy, who along with Percy Rockefeller and others amassed incredible fortunes running stock pools in the 1920’s.

For those who don’t know what a stock pool is, it’s a hedge fund whose sole purpose is to manipulate stocks, first up, then down, making money in both directions. Which was enormously lucrative for the operators of the pools, and the investors therein – the only losers were always the general investing public, and other participants who weren’t on the inside. I would argue that’s precisely what some of the most lucrative hedge funds of modern times also do – there aren’t a lot of ways to beat the market with 30 or 40% returns, year after year, that don’t involve larceny and criminal behavior, at least in my study of the last century of market history.”

The Bunny doesn’t mince words:

“I concluded a while ago that the rot in the system is pervasive, runs from top to bottom, and is largely unfixable. You have oligarchs, powerful and rich families and corporations, who are having their bought-and-paid-for politicians operate the country for their personal enrichment, at the direct expense of everyone else…..

“My point is that absolute power and wealth enable one to control the safeguards that were put into place to protect populations. By co-opting politicians and capturing regulators, the bad man is allowed to come into the room and do whatever he wants, whenever he likes – and the captured media merely pretends that it can’t hear the cries for help or investigate the countless damaged lives. It’s as bad as Russia under the communists, or perhaps worse.”

The Easter Bunny stays under wraps for a reason I can guess… but maybe not express publicly.

I asked a couple of people in a position to know if it was so-and-so. They denied it stoutly.

I could, of course, go the route of the New York press, which likes to stake out, tap phones, access medical records illegally, go undercover,or violate court orders, or any number of other things.

Including hounding erstwhile presidential candidates long after they have ceased to be of political importance.

(If only John Edwards knew how lucky he was to avoid a life as a national figure, official prey for every predator with a pen)

But that particular game doesn’t seem worth either the moral or social candle. And, most often, almost as much can be learned by reading between the lines and studying public evidence as by sleuthing.

But, while sleuthing only requires elbow grease and chutzpah, analysis requires a degree of knowledge, judgment, and intellect that is simply beyond the pay-grade of some journalists, however exalted their professional status. These petty despots have pens and they have power, but they have no clothes, as surely as the emperor they shill for.

A few have figured that out. More will follow suit.

To make the story short, I went and reread a few public records that reference NSS and replayed the stout denials in my mind, recalling as best I could the silences, the gaps, the tone of the answers. I reread The Bunny carefully.

He’s an erudite man, it’s clear. I came to my conclusion about who he was. Right or wrong, time will tell.

I only bring it up to show how looking at the big picture and developing the correct perspective can be as useful and is far more cost-efficient than private-eye sleuthing that reporters think is the one and only credible way to tell a story. Baloney. And morally dangerous baloney. Dirty tricks, even for some intended good you believe in, inevitably corrupt the people who play them, in the same way  black ops corrupt intelligence agencies.

Sleuthing is good to add the footnotes and the QED at the bottom of a piece of research and critical analysis. But as a way of curing social cancers – and financial racketeering is more social cancer than legal infraction – it has limited use. By the time you have written your expose to your editor’s satisfaction and done what it takes to avoid libel litigation, the story is old, the crooks have covered their tracks in paper dirt, and a new game is afoot.

Far better to play Sherlock and deduce your conclusions. Leave the investigative reporters to do their thing. You do yours but you do it to appease your own conscience, out of love for what human beings might be (hard to love them as they are, frankly), out of sheer intellectual curiosity (a great part of what drives me), glee at pelting stones at arrogant predators, and…yes…because after life’s fretful fever, we really don’t know what comes next. It might be wise to hedge our bets, as Pascal did.

There may or may not be Judgment Day. But should it roll around, we want to be able to pass muster. Well, at least, we want the She: Who Is Probably Not There to know we tried…

And  then of course, we write mainly because it’s fun…

How, my dear Mary, — are you critic-bitten
(For vipers kill, though dead) by some review,
That you condemn these verses I have written,
Because they tell no story, false or true?
What, though no mice are caught by a young kitten,
May it not leap and play as grown cats do,
Till its claws come? Prithee, for this one time,
Content thee with a visionary rhyme.

(Percy B. Shelley, “The Witch of Atlas”)

Adrian Ash: Here Comes Stagflation

The whole inflation-deflation debate has always struck me as misbegotten.  People use the terms to mean things so varied that it’s pointless to argue. But such as it is, I’m  a firm believer in the deflationary thesis on the macro level… influenced in this by the economist Antal Fekete , and his theory of how capital is destroyed in a fiat money regime.

Nonetheless, I do see consumer prices rising.

In other words, asset prices fall, industry contracts, and unemployment levels stay high, while the stuff on the shelves costs more, insurance and tuition  rates climb, and living in general becomes more expensive. Continue reading

Bill Anderson On The New KKK: Kleptocrats, Kartels, and Kon Men

“As I see it, the bankers are not clueless at all. They understand the game, they understand that the government is going to clean up the mess that they and their friends in Congress and the Bush and Obama administrations have created, and they understand that their antics are going to give them what they always have wanted: a nice, cozy, financial cartel which will provide sweet political contributions for the political classes, bonuses and high pay for themselves, and very little for everyone else. Continue reading

Former Spy Bosses, Goldman Exec Behind Full-Body Scanner

I blogged earlier about the full-body scanner.

It turns out that one of the scanner’s strongest advocate, Michael Chertoff, former Homeland Security Czar, stands to gain by the sale of the scanner, via his security consulting outfit, Chertoff Group.

Its 8 members include 3 former senior executives from Homeland Security, 2 from the CIA, 3 from the NSA, 1 from FEMA, and 1 from Goldman Sachs. Continue reading

Goldman Charity Prompted By PR Concerns

RaceTotheBottom, a law blog on corporate regulatory issues, has this on the latest PR move  by Goldman Sachs, one we noted in our previous blog post on Haiti. which mentioned the donations made by the big banks.

“The latest effort by Goldman to ameliorate the criticism is apparently to require top officers and managers to donate a certain percentage of their compensation to charity. As the NYT noted:

* While the details of the latest charity initiative are still under discussion, the firm’s executives have been looking at expanding their current charitable requirements for months and trying to understand whether such gestures would damp public anger over pay, according to a person familiar with the matter who did not want to be identified because of the delicacy of the pay issue.

Apparently Bear Stearns had done something similar in the past, requiring the top 1000 employees to contribute 4% of their compensation to charity.

The specifics have apparently not yet been determined. Nonetheless, unlike the stock bonuses, the approach effectively reduces the amount of compensation paid to each employee.

Goldman could have considered reducing the amounts paid in compensation and contributed the saved amounts directly to charity. The financial institution in fact added an additional $200 million to its charitable foundation. But making direct contributions would have potentially violated state law.

Corporations are obligated to profit maximize. Some portion of the company’s profits can be donated to charity. Companies may do so, however, only if there is a business benefit. See RMBCA § 3.02(15)(permitting “donations, or do any other act, not inconsistent with law, that furthers the business and affairs of the corporation.”). For modest amounts of contributions, the business benefit can be vague, with enhanced reputation in the community enough of a justification.

For more significant amounts, however, there must be a sufficient nexus to the business of the company. Had Goldman chosen to donate 5% of the amount left aside for compensation, an amount that would probably exceed $1 billion, it would have needed to show some type of meaningful connection to its business. Any failure to do so would likely generate lawsuits from shareholders alleging that the board had failed to engage in the required profit maximization.”

My Comment:

Isn’t this exactly why the more laws you have on the books, the more complicated your problems get?

Think about it. Goldman can’t make direct charitable contributions, because companies are obligated to maximize profits. Why are they obligated to maximize profits?

Because that’s what shareholders are due, per company law.

You might ask whether maximizing profits is always in a company’s best interests, versus building long term value or market share or any number of other things that stake-holders in the company might value more than high returns, but those things don’t count, because that’s how a law works – like a blunt instrument.

And then when managers focus on these short-term horizons and start doing legal (or illegal) tricks to show quick gains on their books, then we need another set of laws to curb them, with incentives running in the opposite direction….

The end result is a muddle of misplaced directives and restrictions that distort the market.
And people criticize the free market!