Secrets of an Iran Contra Insider
by Al Martin
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by Al Martin
The Case for Sedition: High Crimes of the Bush Cabal (Part 1)
A case for sedition can be made against the Bush Cabal, including George Herbert Walker Bush, James Baker, Cappy Weinberger, and the late Bill Casey et al. They perpetrated a series of frauds against the public purse under the thinly disguised veil of political policies, to wit, the tremendous increase in military and defense expenditures, in order to try to defeat the "Evil Empire" of the Soviet Union, which in itself was a ruse.
This enormous multi-trillion dollar increase in defense spending was used by the Bush Cabal to suck money out of the public purse by the commission of a variety of schemes and to bleed money out of defense appropriations by incessant payments from defense contractors to a shadowy network of Republican-controlled arms companies, security research consultant companies, and offshore research institutes.
This can be ascertained when you look at the big Research and Development (R & D) expenditures that were done on the so-called Star Wars missile defense program. You can see the endless list of "security consultants" that were put on as subcontractors, most of whom had absolutely nothing to do with the development of the weapons.
These security consultant firms would put together proposals for estimated usage of weapons, etc, but since they knew the weapons were never going to work, they knew it was really meaningless anyway.
In addition, there was the "spare parts industry" that goes along with the Bush Cabal, which increases the cost of spare parts (which don't work) by ten or twenty times.
These actions of the Bush Cabal then constitute gross economic malfeasance, which, in my view, could rise to the level of sedition. The definition of sedition is four pages long, and it can be found in Statute 792 of US Title Code 18.
In other words, the Bush Cabal knew that what they were doing would severely weaken the United States, both militarily and economically. The country is weakened militarily by loading US military inventories with a lot of high tech weapons systems that don't work. The country is weakened economically by many years of purported multi-hundred billion dollar deficits, claimed to be $350 or $400 hundred billion dollar deficits, but which were actually (as we have pointed out before) twice as high as claimed at any given time.
The Bush Administration just disguised the numbers through a series of smoke-and-mirror accounting tricks, as we have said before. (See Numbers Don't Lie, Bushes Do.)
The premise of the case is that this malfeasance was created, not under the Reagan-Bush Regime, as referred to before, but by the Bush I Regime.
The Bush I Regime, the period from 1980-1992, is so named because Ronald Reagan was simply a figurehead. Reagan never formulated any policies on his own and he hardly had any of his own people in the cabinet. When you think about it, the only pure Reaganite was Donald Regan, and he was intimidated by George Bush. He even publicly said so. The big powerhouses in the administration, like James Baker, Bill Casey, Cappy Weinburger, Brent Scowcroft, were all old Bush Cabalists. These were not Reaganites.
We need to remember that prior to 1980, before the use of the word "Reaganite," Ronald Reagan didn't have any political faction of his own. He wasn't a politician. He was a two-term governor of the state of California. When he left office, the State of California was teetering on the brink of bankruptcy. That says a lot for his ability to manage things. People should have known then. When he first came in as governor of California, the state budget had a record surplus and all state accounts had surpluses. When he left two terms later, the state was nearly bankrupt and had a record deficit. California had asked for federal assistance to bail out several state agencies, and the surpluses were all gone.
Reagan never had a vested political constituency of his own. People ask -- where did this term "Reaganite" or "Reaganomics come from? It was the Bush people in the Reagan Administration, who fostered the use of these terms. James Baker used it all the time, and that was to lay all the crap in Reagan's lap.
In marketing, it's called branding. They knew Reagan was the popular figurehead, not George Bush -- so why not name everything after him?
It was easier to sell because of Reagan's popularity, and it also disguised the real power in the administration. The Bush people knew that what they were doing would severely weaken our government and our economy, but later on they'd have some political dodge by being able say, "Hey, Reagan was the president." In fact, everyone knew that George Bush controlled things, which was particularly true in Reagan's second term, when Reagan frankly didn't have any idea what was going on anymore.
Regarding the sedition issue, we must remember what George Bush said in 1992, when he was asked what Iran-Contra was all about. This was all done, as George Bush Sr. himself once said, for "the continuous consolidation of money and power into higher, tighter and righter hands." The implication is that there was a grand design behind this illegal covert operation of government, the greatest ever committed by the US Government, which had nothing to do with providing a bulwark against the growing Red Tide in Central America. In fact, it was a covert operation and like all other covert operations, which is what Bush implied, its real agenda was simply to form a political machine under the guise of an illegal covert operation of State to suck ever-increasing quantities of money out of the US Federal Treasury.
The "plan" was well publicized. To build an envisioned 50,000-man contra-army. That never happened. To impede the Soviet build-up of arms and influence in Central America. That never happened. To shore up our right wing dictatorial regime friends in Guatemala and El Salvador. That never happened.
All the stated goals of the stated cover story were not accomplished because nobody cared about accomplishing them. It was just a ruse.
Star Wars was the same thing - just a ruse - and they all knew that Star Wars was just a ruse. Jack Verona, then chief of Defense Advanced Research Projects Agency (DARPA), probably could have gotten himself assassinated because he had loose lips. He used to like to drink at these Republican cocktail parties, and he was often reported off the record in the Washington Post, saying that the weapons systems we're spending hundreds of billions on are pie-in-the-sky. He stated that they either won't work, or in the case of the few that do have a chance of working, we wouldn't have the technology to make them work for another fifteen or twenty years.
The billions and billions (an aggregate $2.77 trillion dollars) that was spent on Star Wars programs at the time (the so-called "Brilliant Pebbles," "Bright Star" the ASAT program) was all wasted.
The Bush people would say that you have to commit to research and development in order to make a weapons system that works. That seemingly would make sense, but they knew going into it that it was untrue, based on what Verona kept telling them. Since he was the technical guy (the chief of DARPA), that was his job. He was supposed to tell the administration what was technically possible with technology at the time and what wasn't. And he told them that the technology to build what you want to build just doesn't exist - and it won't exist for decades.
The Star Wars program then had contractors making enormous soft-money donations to Republican institutions. You saw all these newly created companies in 1985 with names like VigiTech and SynDyne and SolarPlex -- names that would imply "high tech." In fact, they were just shell companies with offices in McLean, Virginia with offshore accounts that were run by Republican interests. They had enormous subcontracting fees.
And what does this have to do with sedition? You must realize that most of the big, big Republican money (the trillion-dollar type money) was made by huge short positions in the market during the time frame of 1987-1989.
This was extensively discussed by Jeb Bush and others in 1985 -- and rather openly so. They were shorting entire indexes, and that's what distorted the markets. That's why there was so much distortion in '87, '88 and going into '89, when all these different types of spreads came up, and people couldn't figure out what they were.
In other words, the Bush Cabal entered into a policy, which they knew would weaken the economic marketplace, the capital marketplaces of the United States, and hence worldwide, since when we sneeze, the rest of the world gets the flu, economically speaking. They capitalized on it further by instituting enormous short positions in a market because they were themselves the ones causing the economic damage to the underpinnings of the nation, which would eventually be felt in the nation's capital marketplaces.
The companies used were the same old list of favorites. Merrill Lynch. Goldman Sachs. Practically every Republican I knew at the time did business there. They would form offshore investment groups that they would all pool into. Trilateral Investment Group Ltd. was one name I remember. The Omni Investment Group Ltd. They would all be Republican-controlled, and they would institute huge short positions in the markets. A lot of times they were dealing with Republican controlled institutions, so if they got into an unsecured debit balance position, nobody ever put the arm on them for the money. They could carry positions much longer, outside of market rules.
They made enormous amounts of money. Alan Greenspan sent a series of secret memorandums to George Bush, prior to the market crash of 1987. He was very nervous during this time. He knew what they were doing, and he told George Bush secretly that you're undermining the capital markets of the United States. Where do you think this is all going to lead?
I have made this contention before-that the stock market collapse in October of 1987 was caused by a massive draining of capital out of the United States, principally due to a variety of schemes originally proffered by the Bushites.
The market did not reach its bottom until December 4, 1989, and enormous amounts of money were made in that period of time. It's a zero sum game. What was being done again is shifting money from the American citizen, this time in his capacity as an investor, to the all-powerful Bush Cabal. Previously we had simply been shifting money to the all-powerful Bush Cabal through citizens wearing their hats as taxpayers.
The Bush idea was (I remember Jeb used to say this) that, "Look, you hit them in every single hat they wear." That was the idea. He used to call them fodder. You hit the fodder in their hats as Taxpayers. You hit them in their hats as Investors and Savers. You hit them in their hats as Insurance Policy Owners through all these insurance scams his brother was involved in. Then there was, of course, Jeb's International Medical Corporation. Jeb also liked health care scams. But that was the idea the Bushes had, that you take the American taxpayer (which they called "One Fodder Unit," or OFU) and you hit them in every single hat they wear.
I don't know where the term came from, but "One Fodder Unit" became a popular term on the Republican cocktail party circuit in 1985. According to them, each individual American citizen equals One Fodder Unit.
Today we have the results of that. When George Bush left office, the federal budget deficit was actually twice what they claimed it was. They were able to hide about half of the federal budget deficit through the Bush Regime. Then Clinton came in, and he had a pretty good idea of what the problems were up front. That's one reason why he kept Alan Greenspan, by the way. It was because the marketplaces both here and abroad had a lot of faith in Greenspan. He told Greenspan early on that we're going to have to bring interest rates down and flood the market with money, which was done in '93. Interest rates fell precipitously, and then there was the sharp spike in '94. This was necessary to bleed some of the problems out of the economy.
After Bush got out of office, it was important that the economy be re-liquefied as quickly as possible, regardless of the inflationary impact. You can always control the inflationary impact later on by raising the interest rates.
Clinton had a good idea of the problems that the Bush Administration had created. Congressman Bill Alexander, who knew Clinton personally for years and used to have lunch with him, used to tell me (this is when they were trying to work out a deal for me) that Clinton was absolutely appalled and even frightened about the enormity of the situation. At the lunch that Bill Alexander had with him at the White House, Clinton looked at him and said, "Bill, I hope you have enough to pay for that lunch. The United States government doesn't have any money left."
When he got there, he realized there was nothing left. He said we are probably 14 or 15 trillion dollars in debt and we're continuing to bleed. Three days after taking office, he begins to discover the real story. And he was frankly scared out of his wits.
Can you imagine coming into the Oval Office and finding out that there are no capital reserves left, the nation is $14 trillion in debt, all of the capital marketplaces are shaky as hell, and the nation is bleeding red ink at the rate of one billion dollars a day, as the Bush Administration publicly admitted?
Clinton then found out that the actual red ink was about twice that amount (about $2 billion a day) and that there was an accumulated $14 trillion in debt - with the rest of the world still in recession.
And then there was another bombshell - an unknown and much more serious malfeasance by the Bush Cabal which Clinton inherited. The West German and Japanese governments started pressing Clinton for repayment of an aggregate $150 billion in secret loans they made to the Soviet Union in 1987, after George Bush Sr. put the arm on them to keep the "Evil Empire" financially afloat a little longer.
The concept was that Bush knew that the Soviet Union was going to collapse in 1987, and he was scared because it would reveal his lies to the American people about why he needed more money for "defense" and other military expenditures. Bush obviously knew that the United States couldn't lend them the money, a country we had spent trillions of dollars to defeat.
If the Soviet Union had collapsed in 1987, people would say - why did we have to spend trillions of dollars on "defense"? The Bush Cabal's lies were premised on the idea that the Soviet Union wouldn't fall apart until 1992.
Then they could say they were responsible for the collapse (the "defeat" of the "Evil Empire") rather than being responsible for wasting trillions of dollars.
The CIA's annual report of the Soviet Union's strength assessment was that the Soviet Union was falling apart. The Bush Administration would then issue two reports, one of them indicating that the Soviet Union was falling apart and the other, a false report, stating that the Soviet Union continues to get stronger.
George Bush Sr. then talked the German, Japanese and Korean governments into making direct intergovernmental loans to the Soviet Union in 1987 totaling about $150 billion dollars. The deal was that the United States would be the ultimate guarantor. That's another $150 billion dollars that US taxpayers would be responsible for.
After lending $80 billion to the Soviet Union at Bush's request, Germany's Chancellor Kohl told him that he couldn't hide any more from his government.
George Bush Sr. then lied to the Japanese about the money he wanted them to give the Soviet Union. He told them if the Japanese gave them the money, then the Russians would give back the northern island possessions the Russians illegally seized from the Japanese at the end of the Second World War. It was a complete lie.
After Gorbachev was gone, Yeltsin said he wouldn't honor the deal because he knew that this was a scam just between Bush Sr. and Gorbachev. It was a political scam that Bush and Gorbachev did in order to make Bush look good and make his policies "viable." Yeltsin actually knew the extent of the conspiracy that existed between Gorbachev and Bush.
It is no wonder that George Bush told reporter Sarah McClendon that "if the American people really knew what we had done, we would be chased down the streets and lynched." What George Bush said then is a case of what happens in Washington when you don't take your Prozac and you have a "lie lapse."
When Clinton came into office, he had a real sense of fear and foreboding.
Knowing what he knew, he used to kid about it. Bill Alexander told me this in April or May of '93. He said, "Six months after being here, I got high blood pressure. I got hemorrhoids. I got all these things wrong with me that I never had before."
If people understood what happened within the Clinton Regime… the fact that Clinton (who was a weak politician to begin with) was forced to accept a lot of Bush holdovers. That was one of the distinctions of the Clinton Regime. There was a record number, over 1,700 Bush holdovers in senior positions in various federal agencies.
Clinton managed to weed out some of them, although he didn't do it as quickly as he wanted because even he understood the bigger picture. He understood the temerity of the situation. He was often criticized - why didn't he weed out these Republican Cabalist holdovers? But he knew what they were there for - to control the liability of the Bush Administration. He was surprised by the numbers, but as he came to realize the enormity of the crime committed by the Bush I people, and the fact that it could literally take the whole world down economically, if the total of this gross economic malfeasance was to be revealed. And then there was the wholesale looting of the federal treasury, and the fact that trillions and trillions couldn't be accounted for.
Clinton understood that you needed Bush Cabalists who know how to control liability -- even within his own administration. He used to tell Alexander that we're Democrats, and we don't have this inherent liability control structure that the Republicans have.
A Republican can go into a room full of a million documents in file cabinets, take one breath, and know exactly which one document you have to shred in the whole million. Republicans have an intuitive instinct of this that they've built up over the years.
Clinton did the right thing. Even he understood, at least early in his regime, what the Bush Cabalists (he used to call them the Bush Faction, or Cabalists, or Trilateralists) had done. He should be commended because he let this Republican control apparatus stay in his government and he gave them a very free hand.
Unfortunately there were many people who suffered because of it, whistleblowers who knew too much. You have to remember that in '91- '92, and even later in '93-'94, people were still suffering. People who knew too much were disappearing and dying under mysterious circumstances. And I was one of the people who suffered -- but at least I understood the necessity of my suffering. There were some people who whined about it, but I maintained a constant position, that is, I am owed money. I was mistreated, lied to, and I was owed money -- after always doing what I had been told to do. And that wasn't right - the way I was treated. I didn't whine about it. I didn't threaten anyone about it because I understood.
People have asked me why I didn't write the book ("The Conspirators: Secrets of an Iran Contra Insider" http://www.almartinraw.com/book.html) in '91, or '92, or '93. I would answer that it would have been politically impossible at the time to write it. That's true, but I could have self-published it. The real reason I didn't is because I understood the bigger picture as well. As my attorney used to say to me back in '91 or '92, "Al, if you write a book now, we had better pray that people don't believe it."
But even I understood what the Bigger Picture was, and so did Clinton, who was smart enough to let that Republican control group exist because he knew what the repercussions would be, if everything that the Bushes had done became public. He knew there would be havoc. It's global in nature, but we're talking about a time in 1992 when the Bush Administration had just re-capitalized the nation's Savings and Loans - which the very same people including some of the Bush family's relatives had taken down.
When you just re-capitalized that at an enormous cost to the American taxpayer, the economy was still losing two billion dollars a day. The world's financial markets were tenuous at best. The Soviet Union had now converted over, but was in a state of crisis. Brazil had now effectively fallen apart. Argentina was falling apart for the first time. Mexico was right on the verge.
In other words, Clinton accurately understood that, had the Grand Bushonian Malfeasance been revealed, the massive loss of investors' confidence could have been the straw that broke the camel's back. Therefore he appropriately kept a guy like Greenspan, who had a good market reputation. Greenspan understood the temerity of the economic situation and stepped on the economic gas pedal. This is something that George Bush tried to get him to do in 1992 and he refused.
George Sr. has always blamed Greenspan for his defeat. He was fond of saying that the economy was on the upswing at election time -- had Alan Greenspan stepped on the economic gas pedal earlier.
Bush threatened to have Greenspan dismissed, which is the president's power. And Greenspan said, go ahead and see what happens to the remaining confidence in the nation's marketplace. This was a real battle, which was unknown in history. Greenspan told George Bush Sr. that the nation's and the world's economy cannot survive another Bush term. He said I'm not going to get you reelected. And that's why he purposely kept the economic reins tight in '92, when the economy was showing some nascent signs of recovery, at a time when prudent economic policy would have dictated that the Fed would have begun to loosen. He purposely dragged his feet, thus choking off the nascent recovery and giving Bill Clinton a double whammy for free.
The double whammy was that the repressed consumer demand that was going on in the last half of '92 because Greenspan was keeping his foot on the economic brake was creating a repressed consumer demand. The minute you stepped on the gas, what would happen is that interest rates would come down.
Greenspan didn't do it to help Clinton politically. It was really done to pump up the economy in 1993. Greenspan was trying to provide every ounce of monetary stimulus he possibly could. One way was to keep pent-up demand that was occurring in 1992 pent up. He did it by refusing to lower interest rates. Then in the next administration, you step hard on the economic gas.
He dramatically increased the nation's short term (M1) and intermediate term (M2) money supply. He dramatically increased the liquidity, and in so doing, he increased short and intermediate term liquidity, thus allowing rates to fall quite substantially. This brought in additional consumer demand. There was a two-fold action going into the first quarter of '93 with left over demand from '92 (pent-up demand.) It was a demand for housing, for consumer goods, big-ticket durables, but that demand wouldn't come forth until rates came down. And that allowed this tremendous economic growth to happen which we had in '93 and for interest rates to fall so low.
The interest rates on the 30-year long bond had fallen 400 basis points from October '92 to October '93. That is a tremendous drop in interest rates. Because of that, Greenspan was able to get, through some crafty manipulation of monetary policy, an awful lot of bang for the monetary buck in terms of economic stimulation. It really changed the tone of the nation's capital marketplaces.
I've always said this, and I know that Greenspan personally thinks the same: 1993 was the pivotal year that saved the nation's (and possibly the world's) economy. There was a tremendous increase in GDP. A lot of banks and brokerage firms were able to re-liquefy again. It was re-liquefied by over-stimulating the economy. That in turn allowed previously illiquid assets to become liquid.
Greenspan shifted the economy into neutral, stepped on the economic brake hard (4th quarter of 1993), and contracted money supply very quickly, instead of doing it over 18 months. He knew that was a risk in an economy still so debt-leveraged. So he compressed the economic cycle. He knew he had over-stimulated which he felt necessary to save the whole world essentially and created incipient inflation in an economy that had to be weeded out. Instead of doing it the traditional way by creating a recession, he took a chance and compressed the entire cycle into less than twelve months, a cycle which ordinarily would have taken twenty-four months.
The key in the case for sedition against the Bush Cabal is that they knew what their policies would lead to. The Bush Administration knew they were creating policies in order for a certain cabal within government, a faction, a segment of society, industry that supports that cabal, to bleed ever larger and larger amounts of money out of the public purse. And they knew what they were doing.
"Industry" here refers to the entire Military-Industrial Complex and perhaps the entire Bush faction within government and the civilian population, which represents about 3,000,000 people or so. This was indeed a continuation of the consolidation of money and power to which Bush referred.
The key is that they knew what they were doing. They knew what the long-term economic impact would be for the United States. They purposely created that negative impact so they could capitalize on it by instituting huge amounts of institutional short positions, when the eventual and inevitable economic effects of all of this missing money began to be felt in the summer of 1987. At that time, suddenly banks looked around and said we don't have any capital left. Our capital base is depleted. Insurance companies looked around and said our insurance net reserves are depleted. There was nothing left. By the third quarter of 1987, the great and all-powerful Bush Cabal had drained so much money out of the economy, combined with perpetual federal budget deficits, that there literally was no money left in the country.
The actions of the Bush Cabal, George Bush Sr. and his cabal, some of the men we've named, and the profits they made, based on policies that they themselves enacted, or proffered and fostered, both legally and illegally -- this rises to the level of sedition, insofar as they knew what they were doing.
And what is sedition? To willfully and maliciously act in a fashion as to sap, suborn or otherwise undermine the United States of America, its lawful authority, thereunto as duly constituted government, or its national security.
Is not economics the ultimate national security of the country? This is the key in the case for sedition against the Bush Cabal.
(Coming Soon: Part 2)
AL MARTIN is America's foremost whistleblower on government fraud and corruption. A retired US Navy Lt. Commander and former officer in the Office of Naval Intelligence, he has testified before Congress (the Kerry Committee and the Alexander Committee) regarding Iran-Contra. Al Martin is the author of "The Conspirators: Secrets of an Iran Contra Insider" (2001, National Liberty Press, $19.95; Toll FREE order line: 1-866-317-1390) He lives at an undisclosed location, since the criminals named in his book have been returned to national power and prominence. His column "Behind the Scenes in the Beltway" is published regularly on Al Martin Raw: Criminal Govt Conspiracy (http://www.almartinraw.com)
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