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1920: The Year of the Six Presidents
A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media
An Inconvenient Book
Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy
Ben Bernanke's Fed: The Federal Reserve After Greenspan
Cheney: The Untold Story of America's Most Powerful and Controversial Vice President
Comeback: Conservatism That Can Win Again
Crazies to the Left of Me, Wimps to the Right: How One Side Lost Its Mind and the Other Lost Its Nerve
Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies
Glenn Beck's Common Sense: The Case Against an Out-of-Control Government, Inspired by Thomas Paine
God Is Not Great: How Religion Poisons Everything
Grace: A Novel
Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage
Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve
Guilty: Liberal 'Victims' and their Assault on America
High Society
Hot, Flat, and Crowded: Why We Need a Green Revolution--and How It Can Renew America
Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy
In the Event of My Untimely Demise
Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate...
Investing in One Lesson
Lenin, Stalin, and Hitler: The Age of Social Catastrophe
Liberty's Best Hope: American Leadership for the 21st Century
Looking For Trouble: Adventures in a Broken World
Marching Toward Hell: America and Islam After Iraq
Obama's Challenge
Palestine Inside Out: An Everyday Occupation
Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow
Quitting Church: Why the Faithful are Fleeing and What to Do about It
Racial Paranoia
Radical Son: A Journet Through Our Times
Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me
Social Justice: Theories, Issues, and Movements
Take Back Your Family: A Challenge to America's Parents
The Ascent of Money: A Financial History of the World
The Coming Collapse of China
The Defining Moment: FDR's Hundred Days and the Triumph of Hope
The Ethnic Presidency: How Race Decides the Race to the White House
The Great Derangement: A Terrifying True Story of War, Politics, and Religion
The Last Patriot: A Thriller
The Man Who Owns the News: Inside the Secret World of Rupert Murdoch
The New Cold War: Putin's Russia and the Threat to the West
The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004
The Pursuit of Happyness
The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country
The Trouble with Islam Today: A Muslim's Call for Reform in Her Faith
War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism
What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears
White House Ghosts: Presidents and Their Speechwriters
Woodrow Wilson and the Roots of Modern Liberalism


In China, autoworkers may earn $2 a day.
	Obama's Challenge

As Al Gore recently put it, 'We're borrowing money from China to buy oil from the Persian Gulf to bum it in ways that 
159 
OBAMA'S CHALLENGE 
 destroy the planet.
	Obama's Challenge

In fact, the United States emits more carbon dioxide than China, India, and Japan combined.
	Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me

                                                                                                                                                                                                                                  oio 
Index 
abortion, 106, 107, 122-23n1; in China, 39 
abstinence-only policies, 38; sexually transmitted diseases, spread of, 37; and teen pregnancies, 37 
abstinence-plus policies, 38 affirmative action, 84 Afghanistan, 158, 185 
Africa, 81, 85, 150, 153; AIDS in, xv, 112, 116, 117 
African Americans, 42; affirmative action, 84; and AIDS, 113; attitudes toward, 82; discrimination toward, 77, 80; and domestic violence, 144; in prison, 189, 190; and Proposition 209, 84; treatment of, 3-4, 86; in United States, 
role of in, 87; violence against, 79 
 Ahasuerus, King.
	Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me

                                                                                                                                                                                              See also 
Bush administration 
Byron Rumford Fair Housing Act, 83 
California, 37, 117, 163; prisons in, 189; Proposition 209 in, 84; segregation in, 83, 84 
California Commission on the Status of the African American Male, 189 
Index - 211 
California Institution for Women, 144 
California Rainbow Coalition, 159 
CalPERS, 192 
Cal State Package Store and Tavern Owners Association (Cal-Pack), 57 
Carmichael, Stokely, 58 Carson, Julia, 96-97 Carter, Jimmy, 98, 173 Centers for Disease Control and Prevention (CDC), 112 Central Intelligence Agency (CIA), 152, 171 
Chad, 190 
Charitable Choice initiative, 41 Cheadle, Don, 191 
Cheney, Dick, 153, 160 Chicago (Illinois), 54 child abuse: women, violence against, 24 
China, 39, 191 
Chisholm, Shirley, xii, xiii, 57, 61, 95, 162; contributions, recognition of, 90, 91; death of, 91; presidential campaign of, 87, 88, 151; as radical, 92; as Renaissance woman, 89; as role model, 87 
Church for Today, 31-32 Church for Tomorrow, 46 Civil Rights Act (1875), 78, Civil Rights Act (1964), 52, 85 
212 - Index 
Index - 213 
Civil Rights Cases, 78 
civil rights movement, xi, xii, 92, 96 
Civil War, 78,170 
Clarification of Federal Employees Protection Act, 120 
Clayton, Eva, 172 Cleaver, Eldridge, 46, 63 Cleaver, Kathleen, 46 Clinton administration: 'abstinence-only' policy in, 37; and Kosovo, xiv, 177 
Clinton, Bill, 113, 114, 145, 173 Clinton, Hillary, 142, 163 COINTELPRO, 51, 57, 60, 61; Black Panthers, focus of, 59; goals of, 58 
Common Sense Budget Act, 74 Commonwealth Fund, 144 
The Communist Manifesto (Marx), 47 
Community Alert Patrol (CAP), 52,53 
Community Health Alliance for Neighborhood Growth and Education (CHANGE, Inc.), 
	Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me

Finally, Albert Lasker got Phillips to agree to leave Marion for the duration of the campaign, traveling to Japan, Korea, and China, ostensibly to learn the 'raw silk trade.'
	1920: The Year of the Six Presidents

Jolson puckishly whispered in Harding's ear that he wanted the ambassadorship to China, then provided the day's highlight, warbling a ditty he had written for the occasion: 
321 
1920 - DAVID PIBTRUSZA 
 We think the country's ready for a man like Teddy.
	1920: The Year of the Six Presidents

He believes that the recent rise in the price of imports from China is a sign that this im
 portant restraint on U. S. inflation is fading.
	Ben Bernanke's Fed: The Federal Reserve After Greenspan

                                                                                                                                                                 Joseph L. Mankiewicz, All 
About 
Eve, screenplay 
Index 

Abate, Joe, 89 Abe, Kenji, 192 Abel, Andrew B., 21 Akerlof, George, 21 Andrews, Edmund, 198 Andrews, Mark, 46 Asian financial crisis, 70 asset bubbles asymmetric approach to, 148-151 identification of, 149-150, 152-153 lags with, 150 policy response to, 87-90, 147-158,207-208 popping of, 150 asymmetric risk management, 148-151 Baker, Dean, 182-183 Baker, Howard, 46 banking crisis, 22-25, 170-171, 176, 177 Bank of England, 87, 98 Bank of Japan (BOJ), 98, 120, 121-122 bank runs, 179 Bartiromo, Maria, 190 Bentsen, Lloyd, 49 Bernanke, Ben agenda of, 8, 93-94 appointment of, 1-2 asymmetric market management approach of, 149-151 communication by, 105-108, 141-145,189-194 criticism of, 165, 181-183 on deflation, 115-116, 119-124 democratic style of, 109-110, 132-136 economic conditions inherited by, 3-5,168-179 on economic forecasting, 128-132 on fiscal policy issues, 145 future outlook for, 203-210 Great Depression studies of, 113-119 Greenspan's implicit criticism of, 171-172 inflation target push by, 95-112, 134 on Japanese deflation, 119-123 nonpartisanship of, 198-199 performance ratings for, 9-10, 181-201 reappointment of, 204-205 risk-management approach of, 159-164,177-179 Wall Street reaction to appoint ment of, 2-3 Black Monday, 69 Blinder, Alan, 2, 74, 76 Bouey, Gerald, 97 budget balance, 77, 78-79, 209 Bunning, Jim, 1, 45 230 INDEX Burns, Arthur communication style of, 52 as Fed chairman, 2 policy performance of, 38-39, 64, 200-201,203-204 Bush, George H. W, 44, 47-48 Bush, George W, 1, 44, 49, 77, 204 Byrd, Robert, 46 capital markets crisis Fed response to, 2, 177, 182-183 lack of prediction of, 183-185 Central Bank of Norway, 98 China, 67, 75, 172, 196, 197, 199 classical economics, 5, 15 Classical-Keynesian synthesis frame work, 5-6, 15-17, 25-26 Clinton, Bill, 44, 48-49, 77, 204 commodity prices, 65-66, 185-186 communication under Bemanke, 105-108, 141-145,189-194 by Fed, 6, 9, 51-58 under Greenspan,80-82 Congressional Budget Office, 79, 196 congressional oversight, 43, 44 Conrad, Kent, 79 constructive ambiguity, 51-56, 80-82,100,141-145 consumer expectations, 187 consumer prices, 4, 38, 175, 186 consumer spending, home values and, 22-23, 31 Council of Economic Advisers (CEA), 56, 61, 195 Cramer, Jim, 25 credit markets bail out of, by Fed, 187 crisis in, 4, 22 monetary policy and, 21 tightening of, 23-24, 191, 193 Darda, Michael, 182 Darman, Dick, 48 DeConcini, Dennis, 46 deflation during Great Depression, 113-114,116 injapan,114,119-123,175 problem of, 14, 115-116, 174-175 ways to combat, 123-124, 173 Depression. Ben Bernanke's Fed: The Federal Reserve After Greenspan Korea and accusa tions of losing China killed Truma4 ,tbe Fair Deal Califano re ' ; PM , WHITE HOUSE GHOSTS called Johnson saying. White House Ghosts: Presidents and Their Speechwriters 'And it means you have to be very careful because every time you speak out on China, there's some body in the Chinese Foreign Ministry in Beijing who's going to read and parse every single word, phrase, and intonation to discern what the United States means and what it intends to do.' White House Ghosts: Presidents and Their Speechwriters as vice president, 318, 331, 348, 359, 361,364 Bush, George W, 456-94 advisers of, 465n, 466,467,468-69,472, 473-74,477-78,480-86,488 aircraft carrier speech of (2003), 487-88 'Axis of Evil' speech (2002), 475-79 Bush Doctrine of, 479 Columbia disaster speech of (2003), 486 congressional address of (2001), 465-72 editorial rev i sions by, 458-59,465-74 extemporaneous remarks of, 481 foreign policy of, 464-65,474-86,490-92 George H. W Bush as adviser to, 467, - 472,474,488 as governor of Texas, 423, 461 gubernatorial campaign of (1994), 423 Iraq War policy of, 474-89, 491 National Cathedral speech of (2001), 460,463-64 oratorical skills of, 408n, 459-60 presidential campaign of (2000), 455, 474 presidential campaign of (2004), 489 press coverage of, 464,467,470,478-79, 480,483,487-88,490,491-92,493 second inaugural address of (2005), 489, 490-92 September l lth Oval Office speech of, 26,456-60,467,469,486 speechwriters of, 26, 32n, 456-94 State of the Union addresses of, 42n, 96n,474-79,483-86 style of, 408n, 461-62, 465-74, 487-89, 491-92 television broadcasts of, 459-60, 481, 487-88 'Troika' speechwriting team of, 460-65, 476-77,478,480,488-89,492-94 UN Security Council speech o(• (2002), 479-83 'weapons of mass destruction' warning of, 474-86 Bush, Laura, 470-71 Butler, London, 297 Butler, Patrick, 249-50, 253, 258-59, 264, 265-66 Butterfield, Alexander, 218, 223 Buzhardt, Fred, 227 Byrd, Robert, 187 Caddell, Pat, 283n, 294, 302, 305, 308, 310 Caffrey, Mary, 80 Califano, Joseph, 164--65, 166,169,177-78, 183-84,434n Cambodia, 209,210-11, 219, 247,409 Cannon,James,254 Cannon,Lou, 315,350,351,361 Caplan, Tommy, 403 Carte, Hugh, 271, 303 Carlucci, Frank, 366 Carpenter, Liz, 145,146, 177 Can, Albert Z. 'Bob,' 54 Carter, Billy, 272,292 Carter, Cliff, 145 Carter, Jimmy, 268-311 advisers of, 270,274,281-82,287-93, 299-304,308-9,410 approval ratings of, 298, 305, 395 'Beloved Community' phrase of, 283-84 cabinet appointments of, 164, 270, 274, 305 Camp David Accords of (1978), 291-93 Clinton compared with, 405 Democratic National Convention speech of (1980), 309 domestic policies of, 273-74, 277-80, 282-84,293-96,298-305 economic policies of, 294-95, 298 editorial revisions by, 268-73, 274, 284, 288-89,297 energy policy of, 273-74, 277-80, 294-95,298,299-305 European tour of (1977),281-82 extemporaneous remarks of, 277-79, 285-86,309 farewell address of (1981), 310-11 'fireside chats' of, 273-74,285, 299 foreign policy of, 274-77, 278, 281-82, 284-93,298-99,310-11,320,410 , 'Georgia mafla' of, 272, 282-83 gubernatorial campaign of (1966), 271 inaugural address of (1977), 269-70 'inordinate fear' quote of, 275-76 in Iran hostage crisis, 307, 308-9, 375 Los Angeles Bar Association speech of (1978),286-87 'malaise' speech of, 301-5 memoirs of, 288 'moral equivalent of war' phrase of, 279 Naval Academy speech of (1978), - 287-90,302 'New Foundation' phrase of, 293-96 'New Spirit' phrase of, 284 Notre Dame speech of (1977),274-77, 278,288 nuclear policy of, 278, 289,298-99, 310-11,320 oratorical skills of, 271, 277-79, 284, 285-86,30314,309 Index personality of, 268-69, 272-73, 461 presidential campaign of (1976), 257, 261, 263, 264, 266-67, 280, 304 presidential campaign of (1980), 298, 306,307-10,312,317 press coverage of, 270, 272, 273, 274, 275,276,277,278,279-80,289, 290,292,294,296,297,300,301, 305 religious convictions of, 261,461 Soviet policy of, 274-77, 278, 288-90, 298-99,307 speechwriters of, 267, 268-311,405-6, 410,493 State of the Union addresses of, 282-84, 293-97,310 style of, 268-73, 277-80, 284,285-87, 297,298,302-5,309,310-11 television broadcasts of, 273-74, 279-80,299-300,302-5 at V emra summit, 298-99 Wake Forest speech of (1978), 288 Washington Press Club speech of (1977), 272-73 Carter, Rosalynn, 261, 285,289 Casey, William, 317 Casserly, Jack, 235-36,248, 250, 251, 253 Castro, Fidel, 114-15,122 Cater, Douglass,154,155,167,187 Central Intelligence Agency (CIA), 122, 123,126,227,252,480-83,487 Chambers, Whitraker, 318, 325 Chase, Smart, 6 Cheney, Dick, 245,250,251,252-53,256, 264, 266, 267, 352, 456, 463, 465n, 470, 481, 493 Chew, David, 343 Chiang I{ai-shek, 156 China, 66, 72, 118n, 130, 156, 183, 253-54, 452 Christian, George, 164,183 Churchill, Winston S., 22, 24, 33, 73-74, 75,182,326;382 Cicconi, James, 370,373 civil rights movement, 87-88, 89, 90, 96, 102-3,110-11,132,134-38,157-62, 187 Civil War, U.S., 2,466 Cizik, Richard, 327 Clark, Ramsey, 187 Clark, William, 325, 331 Clarke, Richard, 456 Clay, Lucius, 139 Clifford, Clark, 4, 33-34, 36, 37, 38143, 44, 45,46,47,48-49,51,56,57,58,59, 60,61,63-65,67,71,97,149,169, 184-85,267,301 Clines, Francis X., 329 Clinton, Bill, 402-55 advisers of,402-11,412,417-19,421-33, 437-39,445,447,448,450,451-55 American University speech of (1993), 410-11 approval ratings of, 423 Balkans policy of, 450-54 Carter compared with, 405-6 as centrist ('New Democrat'), 402, 405,418,423-25,428,430,431, 438-41 D-Day anniversary speech of (1994), 419-21 Democratic National Convention speech of (2000), 454-55 domestic policies of, 404-9,412-17, 421-35,438-41,443 economic policies of, 404-9, 413, 424-25,443 editorial revisions by, 402-4, 407, 410-11,424,427,450,451,454-55 'era of big government' phrase of, 438141 extemporaneous remarks of, 407-8, 410-11,425-26,429,432,441-42 FDR memorial speech of (1995),433-34 foreign policy of, 408,409-11, 450-54, 465,474 as governor of Arkansas, 405,406, 421 health care program of, 412-15,422 impeachment of, 447,449-50,461 inaugural address of (1993), 402-4 Lewinsky scandal and, 442-50,454 memoirs of, 413, 416-17 Memphis speech of, 415-17,420 'New Covenant' phrase of, 428 Oklahoma City bombing speech of (1995), 435-37 oratorical skills of, 404, 405-I1, 413, 428-29,446,450 Oval Office speech of (1993),404-7 'Pile of Vetoes' speech of, 431, 432-33, 438 polls used by, 417, 424, 426, 429, 430-31,438,441 presidential campaign of (1992), 394, 399,405, 418 presidential campaign of (1996), 431, 440,441142 press coverage of, 404,406,407, 414, 428,433,434-36,439-41,444,446, 447,450,453,461 'putting people first' slogan of, 405 Index Index Clinton, Bill (coat.) White House Ghosts: Presidents and Their Speechwriters 23, 74,140,147, 150-2,158,160,168,269,271,273-4, 277,28o Bukovina,266,393,4I7 Bulgaria, 418 - 19,483-4,515,532,554, 555,557,593 Bulge, Battle ofthe, 557,560 - 2,564, 565 Burke, Edmund, 501 Byelorussia, 69,148,358,386,389-90, 395,422 - 4,444,448,551 Caldwell, Erskine, 476 Cambodia, 594 Canada, I 6o, 363 Canaris, Admiral Wilhelm, 363 Case Yellow, 376,379 Catherine the Great, Tsarina, 67,511 Catholic Center Party, German, 85, 125,201,286,299-301,338 Catholic Party in Bavaria (BVP), 86, 118,299 Catholics, 89,205,213,255,295,300, 321,327,334,365,368 Central Committee (of the Bolshevik, later Communist, Party), 9, 50,131, 138,148,162,18l,346,347,392,58I; and Communist Party purges, 268-71,273,277,28o;and de-Cos sackization, 70; expansion of, 151; Jews on, 68; and Lenin's illness and death, 1 5 0 , 152; Politburo created by, 146-7; Red Army and, 504; requests for Gulag labor to, 264; Stalin elected to, 30,137; terror practices authorized by,243,245,246,250;and October Revolution, 34-6,139; Trotsky and, 153-4 Cesarani, David, 322 Chamberlain, Neville, 351, 352, 375 Chancellery of the Filhrer (KdF), 365 - 7 Chechens,514-19 676 INDEX Cheka (Soviet secret police), 46-5, 50-53,5',63 - 6,68,71 - 2, 141,144, 162; clergy members arrested by, 248; de-Cossackization by, 70-1; peasant uprisings and, 74; replaced by GPU,145 Chelmno death camp, 457,46o, 530, 587 Chetniks, 398 Chicago Tribune, 485 China, 347,558; Communist, 10, 157, 594 Christ the Redeemer, Cathedral of (Moscow), 250,258-9 Christianity, 455 Chuev, Felix, 252 Churchill, Winston,103, 379, 382, 482, 484,485,492,494,543 - 4,561,568-9; at Casablanca Conference, 526; Moscow missions of, 500-1, 554-6; Stalin warned of German invasion by,407;atTehran Conference, 544-6,548-5o; walkabouts of, 527; and Warsaw uprising, 552-4; at Yalta Conference, 556-9,591-2 Ciano,Galeazzo,424 Citadel, Operation, 530-1 Class, Heinrich, 97 Cold War, 14, 14,588 collectivization, 168-75,179, 179,227, 235-7,250,266,586 Columbia University, 213 Combat Technical Group, 137 Comintern, see Communist International Commissar Order, 4z6-8 Commission for the Rehabilitation of the Victims of Political Repression, 479 Committee for the Constituent Assembly, 64 Committee for the Struggle Against the Counterrevolution, 33 Communist International (Comintern),85,100,104,109,111, 144, 190,258,345,403,442,472,591, 593 Communist Manifesto, The (Marx and Engels), 330 Communist Party, 17, 29, 52, 61, 84, 146,i6i,i65,i8o-1,254,262,265, 442,582; and German invasion, 472, 488-91, 493; and Lenin's testament, 153; assassinations of leaders of, 238; Central Committee of, see Central Committee; Congresses of, 75,141, 143,145,146,154,157 - 60,163,276, 346,347,355,503;de - Cossackization and, 71; dekulakization offensive of, 169-72;disunity in,153-5; drafting of members of, 6o; ethnic groups expelled from, 515,517,518; fellow travelers Of,263;French, 381,466, 472; German, see Communist Party of Germany (KPD); Greek, 400; in electoral politics,136; Kazakh, 235; Lenin cult in, 156; Machine Tractor Station and, 236; organization of, 135; paramilitary groups of, I to; peasants terrorized by members of, 230-1;Polish, 255,387-8,536,552-4; Political Bureau of, see Politburo; purges of,16,145,156,261,267-81, 580; radicals in,167,168; religion and, 247-50; Ukrainian, 228 , 2 3 0 ; Yugoslav, 399, 588, 591 Communist Party of Germany (KPD), 86-go, 104, IOT 113, 185, 212,219,296-7,300,585; banning of, 286; concentration camps for mem bers of,302-3,311,587; dissolution of, 301, 357; in elections, 125,18q, 190,2o4-6,2I7,299;founding of, 86; general strike against reparations called by, 105; and Hitler's appoint ment as chancellor, 221, 288; Hitler's rhetoric against, 187,193, 533; 'hunger government' protested by, 201; information service of, 191; Jews in, 89, go; linked to assassination INDEX 677 attempt on Hitler, 376; Nazi violence against, 296; paramilitary group of, 207; peasant recruitment efforts of, 198; persecution of, 3o6; Reichstag fire blamed on, 298,299,3o6-7; street violence between Nazis and, 209-10, 295-6; uprising attempts of, 87,1oo-1,1o6,112 Communist Youth, see Komsomol concentration camps, 3,55; German, see Nazi concentration camps; Soviet,7,46,55-9,72,113,170,171, 235, 236, 243, 2 49 - 5 0 ,255, 256, 259, 46o (see also Gulag) Congress of Peasants' Deputies, 44 Congress of Soviets, 36, 39, 41, 43, 49, 257 Conquest, Robert, 235 Constituent Assembly, Russian, 34, 35,37,39,42,43,46,4',580 Constitution, Soviet, 147, 175 Conradstein (Kocborowo), killing center, 366 Conti, Leonardo, 365,366 Corrective Labor Camps and Labor Settlements, Main Administration Of, 1 77 corrective labor colonies (ITK), 263-4 Cossacks, 57,63,64,69-72,230,422 Council for Aid to Jews Among the Poles, 537 Council of People's Commissars, 38; see also Sovnarkom Cripps, Stafford, 357 Croatia, 398, 416, 418 Cuba, colonial, 55 Cultural Revolution, Soviet, 250 Cuno, Wilhelm,104,105 Czechoslovakia, 73,323,381,416,564; Communist Party in, 76,1oo; Jews deported from, 324,325,370,466; Nazi occupation of, 3 1 3 -1 4 , 3 2 4,35 1, 35 2 ,355; postwar, 592; Soviet prison ers of war from, 55 - 6,64 Czerniakow, Adam, 535 - 36 Dachau concentration camp, 326, 337, 341, 369, 567, 584 Dagestan,513 Daimler-Benz, 294 Dalstroi, 245 Darlan,Admiral Frangois, 419 Darrd, Walther, 199 Darwin, Charles, 16,33 1 Darwinism, social, 12,16,188,219 Davies,Sarah, 247 Dawes, Charles, 116 D-day,551 death camps, 45 2-6 8,530,5 8 7; see also names of specific camps Defense Ministry, German, 291 Dekanozov, Vladimir, 394 dekulakization,63,167-74,176-9, 22 7, 22 9 - 3 2 , 2 35 -6 , 2 4 1 ,24 2 , 2 63 Democrats, German, 86 Deniken, General A. I., 69,72 Denmark, 379,4o6,415 Diels, Rudolf, 298 Dimitrov, Georgi, 357,403,472,492-3, 593 Djilas, Milovan, 556,588 Dolot, Miron, 232-3 Domarus, Max, 288 Don, Revolutionary Committee of the, 70 D6nitz, Admiral Karl, 525 Drexler, Anton, 93, 95, 97 Dulles, Allen, 569 Duma, 21-3,135 Diisseldorf Industrial Club, 219 Dzerzhinsky,Felix,35,46-8,52,59,72, 150,175 Dzhughashvili, Ekaterina,131-2 Dzhughashvili, Vissarion, 131 Eberhard, General Kurt, 449, 450 Ebert,Friedrich,83,87,124-5 Eckart, Dietrich, 97,99 Eher Verlag, I IS 678 INDEX Elchmann,Adolf, 322 - 4,326,370, 373,400 Eicke, Theodor, 353 Eimann, SS Major Kurt, 366,367 Einsatzgruppen (EGr), 352-3,363, 364,366,370,37 1 ,4 1 7,44 1-6 , 449-5I,46o,463,538 Eisenhower, Dwight D., 567, 568, 594 Eisenstein, Sergei, 38 Eisner, Kurt, 84, 86, 88, 9o Elser, Georg, 376 Enabling Law (Germany, 1933), 300-301,316 Engels, Friedrich, 32, 99, 330 Erickson,John, 502 Esser, Hermann, 91, 1o4 Estonia, 357,384,392 - 6,444,547 ethnic cleansing, 5,583,592; Nazi, 363-4,367,369 - 74,459,468 (see also Jews, extermination of); Soviet, 254-5,511 - 22,550,59233 ethnic Germans, 364; deportations of, 391; resettlement of, 372,373,374; in Soviet Union, 253 - 4,51 1-1 3,535, 592-3 eugenics, 331-4 euthanasia, 365 - 9,444,4 61 Evian Conference (1938),323 famines, 74-6, 141, 228-36, 248 Far Northern Construction Trust, 245 Farben, I. G., chemical concern, 464-5,467 Fascism, 108,332,358,472,476; Italian, 3,102-4,111,117,190, 216-17,3o6,466-7 Feder, Gottfried, 91 - 3,95 'final solution,' 16,274,452 - 68, 537 Finland, 135,136,149,357,384,413, 418,422,423,511;postwar, 547;SS recruits from, 415; Winter War with, 392 - 3,401,403,405,473,474 Fischer, Ruth, 9o 'five ears of corn, law on,' 229 Five-Year Plan, 161-6,169,174,175, 181,228-9,231,235,242,258,263, 268,287 Flossenbiirg concentration camp, 339 - 41,369,567 Food Supply, Commissariat of, 63 forced-labor camps, see concentration camps, Soviet Ford, Henry, 164 Ford Motor Company, 164 Forster, Albert, 366 F6rster,Jurgen,449 Fortune magazine, 334 Fotieva, Lydia, 151 Foundations of Leninism, The (Stalin), 156 - 7 Four-Year Plan, Nazi, 320 France,107,108,321,329,349,350, 405,526,546,557,574;fall Of,266, 38o-2,397,413; and Hitler-Stalin pact, 357; appeasement of Hitler by, 312 - 14,351; Communists in, 358, 466,472; Gulag condemned in, 257; in Berlin Olympics, 320; German invasion of, 348,375,379-80,393; intervention against Bolsheviks by, 66; Jews deported from, 466,587; liberation of, 554; maps of, 4o6; peace offers from Hitler to, 366; Poland and, 347,352,354,361; POWs, 48o; Ruhr invaded by, 1o4-5, 112,116; Soviet friction with, 161; Soviet negotiations for alliance with, 356; Vichy, 419-20,434 - 35,501,509; Wehrmacht volunteers from, 416 Franco, General Francisco, 313,321, 358 Franco-Prussian War, I I I Frank, Hans, 457,46 1 Franz Ferdinand,Archduke of Austria, 82 Frederick the Great, King of Prussia, 185 Free Corps, 87,90 Freedom of Conscience, Decree on, 248 INDEX 679 Freemasonry, log Freiberg, Dov, 462-63 French Revolution, 26,27,301,311, 340 Frick, Wilhelm,186, 186,285 Frieschkrler (guerrilla), 426 Front, The (play),504 Fuchs, Klaus, 592 Galen, Clemens August von, 368 Galton, Francis, 331 Garlinski, J6zef, 465 gas chambers, 338,452,46o-6,521, 5 2 9 - 30,566,587;mobile, 367,399, 457,460,461,529 Gdynia (Gotenhafen) killing center, 366 Getter, Mikhail, 491 Gemlich,Adolf 92 General Congress of Workers' and Soldiers' Councils (Berlin, 1918), 84 General Government (General gouvernement),371,373,374, 457,461,462,535,537,538 General Motors, t63 George V1, King of England, 546 German Combat League (Deutscher Kampfbund), I11-15 German Earth and Stone Works, 335, 340 Germanization, 291-2 German National People's Party (DNVP),196, 206, 216, 217, 285, 294, 299,301 German Women's Enterprise (Deutscher Frauenwerk), 305 German Workers' Party (DAP), 93-5 Gestapo, 3,274,303,318,363,373,456; asocials arrested by, 335, 338, 339; Einsatzgruppen and, 353,445; gassing operations run by, 369,465; Germans shot for defeatism by, 568; Soviet prisoners executed by, 570 Gibson,Archibald,416 Globocnik, Odilo, 461-4 Goebbels,Joseph, 18,126,187,192, 218 , 2 95-6,467,532,533,563;boy cott of Jewish businesses advocated by, 315; diaries of, 194, 211-12, 220-2,301,454; on deportation plans for Polish Jews, 371, 372; and elec tions,196,197,217,299-300; in Hitler's bunker, 575-6; and invasion of Soviet Union, 431, 439,440; on Kristallnacht, 325-6; and extermina tion of Jews, 445,454-56,458,526, 534,538; propaganda machine of, 190,194, 208; at Reichstag fire, 298; speeches at mass meetings by, 186; suicide of, 577; war plans described to press by, 350 Goebbels, Magda, 577 Goglidze, Sergei A., 276 Goldschmidt, Jakob, 213 Gorbach, Grigorii, 245-6 G6ring, Hermann,113, 218, 221, 222, 285, 432,453 Gorky, Maxim, 8, 48, 76,138,171, 259-60,580 Gosplan,145 Gosudarstvennoe Politicheskoe Upravlenie, see GPU GPU,145,150,162,423,540;see also OGPU Graf, Ulrich,113 Graziosi, Andrea, 237 Great Britain, 334,348 - 50,384,405, V6,413-I4,457,531,560, 561, 592; in advance on Germany, 554,568; air battles over, 266; appeasement of Hitler by, 3 1 3 - 14,351; in armistice negotiations with Ger many, 568-7o; in Berlin Olympics, 319-20; Communist Party in, 76, 358; and fall ofFrance, 379 - 81,393; and German invasion of Soviet Union, 407 - 8,455,484; Greece and, 397-8; Gulag condemned in, 257; Hess in, 494; Hitler's attitude toward, 126,321,329,564; 68o INDEX Great Britain (continued) Hitler's plans for invasion of, 382-3, 402,413; House of Commons, 352; and Hitler-Stalin pact, 357; Indian Army, 433; intervention against Bolsheviks by, 66; interviews with Hitler published in, io9, It o; Japan ese capture of soldiers of, 492; and Jewish refugees, 323,447; lend-lease agreement with, 485; linked to assassination attempt on Hitler, 376; Nazi radio broadcasts to, 532; in negotiations with US and USSR, 500-1,544 - 50,552-9,589;in North African campaign, 509,525; peace offers from Hitler to, 366,375; Poland and, 347,352,354,361; POWs, 48o; reparations and, io4, 112; Soviet negotiations for alliance with, 356; Soviet support for strikers in, AI; suicide rate in, 202; uncondi tional surrender demanded by, 526, 589; unemployment in, 2o4; War Cabinet, 482 Great Depression, 76,194,197,200, 201,293,305 Great Terror (Soviet), 241, 244-6, 251-2,264-5,278,347,396,540; against national minorities, 253-6; purges in, 281; religious persecution Of, 250,255 Greece, 397-8,400-1,406,414,433, 441, 515; Jews deported from, 466, 587;postwar, 555,591 Greens (Russian peasant armies), 66 Greiser, Gauleiter Arthur, 367, 461, 464 Gross, Jan, 364 Grossman, Vasily,233-4,273-4,573 Gross-Rosen concentration camp, 340,341 Grynszpan, Herschel, 325 Guchkov,Aleksandr 1., Lenin, Stalin, and Hitler: The Age of Social Catastrophe 363,364,367,369 - 71,373,374,421, 441 - 4,453 - 5,457,462 Hierl, Konstantin,198 Hilberg, Raul, 468 Hilfspolizei ('deputy police'), 296 Himmler, Heinrich, 18g, 207, 337, 421, 442,540 - 1,553 - 4;concentration camp system expanded by, 338-40, 464-6; deportations of Jews organ- INDEX 681 ized by,323,324,424;and euthanasia program of, 366-9; evacuation of concentration camps ordered by, 565; extermination of Jews carried outby,369,399,443 - 5,451 - 8,461, 4 6 3,46 6 ,467,534-9,541-42,566; propaganda techniques of,190,193, 194; recruitment of Germanic SS volunteers by, 415; resettlement plans Of,373,424-5,464; shoot-to kill order against Polish insurgents issued by, 363; Speer and, 336,341 Hindenburg, Oskar von, 204,220 Hindenburg,Paulvon,125-6,2oo, 201,204-5,2o8,217,286,289-90; death of, 310; elected president of Germany, 125; emergency decrees issued by, 206; Hitler appointed chancellor by, 126,211-12,218, 220-2; Jews and, 307,317 Hitler,Adol$ 3,6-7, 10-16, i0-i6,253,271, 444 - 5,532 - 3,582 - 7; agricultural program of,198-200,287;annihila tion of Jews as essential aim of, 414, 447,45 2- 9,5 2 6 -- 7,533 - 5,538,542, 562,573,576-7; anti-Semitism as obsession ol;12-14,18,81-2,96-7, 98-ioi, 1 0 7,213; appeasement of, 3 1 3 - 14,351,352; appointed chancel lor,126,191,201-2,206,211-12, 216-18,220-3;Ardennes offensive of, 56o-2; aristocratic support for, 293; 'asocial' campaign of, 334-6, 338; assassination attempts on, 37 6- 7,55t; autobiography ofsee Mein Kampf; Balkan offensive of, 397 - 9,4o6; birth of, I1, 81; cabinet Of, 285-7; collaborators with, 416-19; concentration camp expansion approved by,340,341;conscription reintroduced by,312;consensus dictatorship of,r5,120-1,223, 2 9 8- 3 1 4,5 82 ; consolidation of power of, 2 99-30 2 ,304; economic policies Of, 305-6; and elections, 193-4,203, 205,2o8,220,297;eugenics policies of, 331-3; euthanasia program of, 365-9; final days of, 575-7; first wave of terror under, 302-3; and founding and growth of Nazi Party, 95-8,124, T88-go; and French invasion of Ruhr, 105; industrialists and, t86-7, 219-20,292-3; interviewed by British and American reporters, 1og-io,196-7, 208; 'Jewish Bolshe vism' deplored by,1o8-9,121,122, 217,320-1,329-30,381, 442,526-7, 53 2, 453 , 5 6 4 , 573,575,583; during last months of war, 562-4,568, 573-5; law and order measures of, 307-8; leader cult of, 123; marriage of, 576; and 'moderates' in Nazi Party, 126-7; during Munich upris ing, go; Mussolini and, 103, 1 03,4 6 7, 531-2, 534; nationalism of, 11-13,94, 96-7, 196; nonaggression pact with Hitler, see Nazi-Soviet pact; and North African losses, 508,509,525; officer corps support for, 289-92, 427-8; Poland invaded and occupied by, 352 - 5, 361 - 4,366,369-72, 377; popular support for, 293-5,304, 376-7; populist view of, 15; prewar persecution of Jews by, 315-20, 325-6; prison sentence of, 115,117, 123; purges carried out by, 2074, 219, 310, 308-ro; putsch attempt of, 104,io8,I1o-15,124,325,5o8;radio speeches of, 28 7 - 8,31 1 ,526-7; rallies addressed by,191-3,194-6,202-4, 209, 323, 338; and Reichstag fire, 298-9; right-wing politics of, g1-4, 124-5; show trials and accusations of conspiracy with, 275; Soviet cam paign 0082 - 3,397,40I,4M-to, 4 1 3 - i 6, 4 201 73 , 4 2 9 , 43 1- 40 , 47 1 ,472, 4 81- 4 , 4 88, 49 0, 494 , 495,499 -- 5 0 0, 502,506 - 11,527,530-1,540; suicide of, 577; Vichy France and, 419-20; violence sanctioned by, 210; 682 INDEX Hitler, Adolf (continued) and war crimes trials, 549; and Warsaw uprising, 553; as 'weak dictator,' 348; Western Europe attacked by,375-82,401,4o6,413; and Winter War, 392; worldview and foreign policy of, 348-5o; in World War 1, 11, 82, 84; youth of, 81, 118 Hitler Youth, 532 Hoepner, General Erich, 427-8 Hoffmann, Heinrich, 4o6-7 Hoffmann, Johannes, 88,89 Holland, see Netherlands Holocaust, 4; see also Jews, annihilation of homosexuals, persecution of, A, 336 Hoover, Herbert, 76 Horthy, Admiral Mikl6s, 418,467-8, 532,533 Hoss, Commandant Rudolf 464,466 Hossbach, Colonel Friedrich, 350 Hugenberg, Alfred, 196, 217, 221, 285 - 6,294 Hull, Cordell, 407,559 Hungary, 73,415,418,533,557,5 6 4; Communist revolution in, 88, 89, Ioo,149, 321; Jews deported from, 339,467-8,532,587;P0stwar,555, 592 Illustrierter Beobachter (magazine), 191 Independent Social Democratic Party of Germany (USPD), 83-8 India,4I4 Ingush,514,5I8 Interior, German Ministry of, 285, 333,335,337 Internal Affairs, Commissariat of, 57,58 International Automobile and Motor cycle Exhibition (Berlin, 1933), 294 International Olympic Committee, 319 Iskra(newspaper),132-3,135 Israel, 593,594 Italy, 123,126,219,347,354,402,424, 509,531-2,569; Communist Party in, 76, too; fall of Fascist regime in, 466-7; Fascist rise to power in, 3, 102-4,1[[,117,190,216-I7,3o6; Greece invaded and occupied by, 397,400; Jews in, 534; Olympics awarded to, 319; in Tripartite Pact with Germany and Japan, 413,419 Ivan the Terrible, Tsar, 474,58o Izvestia, 49 Jacobins,26 Japan, 347, 394, 402, 416, 548, 554, 557, 558,592; China and, 359; Intelli gence Service, 272; intervention against Bolsheviks by, 66; surrender of English soldiers to, 492; in Tripar tite Pact with Germany and Italy, 413, 419; United States attacked by, 439 - 40,457 Jehovah's Witnesses, 334 'Jewish Bolshevism,' 12, 90,126,36 1, 441, 582, 587; Hitler's diatribes against, to',121,122,217,320-1, 329 - 30,381,414,453,526-7,53 2 , 564,573,575,583; invasion of Soviet Union to destroy, 350, 383, 397, 414, 415,417,421-3,425- - 8,435-6,439, 44i-5o, 481; in Poland, 387 Jews, 15-17,104,167,195,209,223, 304,390,512-13,574; agriculture and, 198; anti-Communist, 307; Aryanization of businesses of, 322, 324; in Baltic states, 395; blamed for World War 1, 83,56o, 583; in Bolshe vik leadership, 67-8,go,155,248--9, 593; boycott of business of, 315-18; in Bulgaria, 419;in Byelorussia, 390;in concentration camps, 326, 335, 338-9,369; curtailment of rights of, 16,118,216,293-4,318-19,329,338; INDEX 683 on death marches, 566, 567; deporta tions of,3 2 2 - 5,337,369-71,373 - 4, 387,389,400,420,535-6; escalation of Nazi radicalism against, 369 - 72; expropriation of property of, 18q, 199; extermination of,36, I I, r6, 363,367,368,398 - 401,417,423,433, 44 1-6 8,4 81 ,495,529 - 30,532-42,549, 587,593; in France, 42o;and German invasion of Soviet Union, 433,435; in ghettos, 369,372,424,535-40;in Greece, 400-1; Hitler's vow to destroy, 414,526-7,533 - 5,562,573, 576-7;Kristallnacht attacks on, 325 - 9; in Lenin's ancestry, 24; linked to assassination attempt on Hitler, 376; pogroms against, 68-9; in Poland, 352,353,36o,363,364,387, 389; prewar Nazi persecution of, 307 - 9,315 - 30,584; in radical move ments, 88-91; in Romania, 416-17; in Soviet ruling elite, 248-9,356; street violence against, 209,210,215;in Ukraine, 167, 390; Wehrmacht propaganda on, 353-4; in Yugoslavia, 398 - 4oo; see also anti-Semitism Jodl, General Alfred, 382,42 1 Jogiches, Leo, 9o Judendltestenrate (Jewish councils), 371,535 Junge,Traudl,576 Justice, Commissariat of, 54 - 5, 57, 173,249 Kadet (Constitutional Democratic) Party, 21,46,49 Kaganovich, Lazar M.,167,171, 228-30,234,268-7o, 278,28o Kahr, Gustav von,112-14 Kalinin, Mikhail 1., Lenin, Stalin, and Hitler: The Age of Social Catastrophe As Rumsfeld noted in his India meetings, however, the countries shared interests-regarding China, Afghanistan, the Middle East, and missile defense, for example-and we each wanted various kinds of help from the other. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism 147 148 On another randomly selected day that month (January 28), the corresponding list included planning for continuity of U.S. government operations in the event of a national catastrophe, preparing Rumsfeld for a National Security Council meeting on war-on-terrorism detainees, negotiating offensive arms reductions with Russia, briefing Wolfowitz for a meeting with China's Vice Minister of Foreign Affairs, and managing U.S. relations with Australia, India, NATO, Romania, Saudi Arabia, and South Korea. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Yet UNMOVIC failed to get support from Saddam's friends on the UN Security Council-China, France, and Russia-and for years Saddam refused to cooperate with this agency as well. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Chemical Weapons Convention, 41 chernieal weapons (CW) in Iraq: in Anfal campaign, 184 battlefield capability of, 290n in Bush UN speech, 311 Iraqi Intelligence Service and, 188 ISG report on, 326-327, 471, 472 letter to Clinton and, 195-196 NEE report on, 325-326 in Powell UN speech, 353 UNMOVIC and, 352 UNSCOM and, I86, 194, 306, 312 U.S policy on, 213, 222, 238 as war rationale, 224-227, 331, 514 Chency, Richard (Dick): Afghanistan war and, 98, 105 Chalabi and, 490 'Dark Winter' report and, 216 IIAand, 404,405,406 Iraq policy and, 210, 246, 282, 286, 299, 340-341,351,520 Iraq Stabilization Group and, 469 Iraq war and, 397 Karzai govern,nentand, 143,146 Kay Report and, 475 658 INDEX Cheney, Richard (Dick) (Continued): 9/11 response and, 59 as NSC member, 53 on Sistain's role in Iraq, 467 strategic communications and, 320 thought process of, 60, 62 on WMD, 20 China, 44, 64, 99, 198, 336 Christian Science Monitor, 125 Churchill, Winston, 23, 253, 381 CIA. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Muslim militar ies and merchants spanned the globe and dominated nearly everywhere 'ISLAM IS THE ANSWER; ARAB IS THE WAY' 11 28 they went, from North Africa and Spain in the West to India, China, - and ultimately Indonesia-today the most populous Muslim country in the world-in the East. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... Rather, he spent much of his first fifteen years as Supreme Leader building the domestic political base that he sorely lacked when he came to power, and he built critical new international alliances-notably with nuclear powers Russia, China, and North Korea-that he believed would eventually help Iran accomplish its national objectives. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... Perhaps most importantly, you will see how the globalization of finance has, among many other things, blurred the old distinction between developed and emer ging markets, turning China into America's banker - the Com munist creditor to the capitalist debtor, a change of epochal significance. The Ascent of Money: A Financial History of the World It was not until 221 BC that a standardized bronze coin was introduced to China by the `first Emperor', Qin Shihuangdi. The Ascent of Money: A Financial History of the World By comparison, economic life in the Eastern world - in the Abassid caliphate or in Sung China-was far more advanced, just as it had been in the time of Charlemagne. The Ascent of Money: A Financial History of the World According to Song Hongbing's best-selling book Currency Wars, published in China in zoo7, the Rothschilds continue to control the global monetary system through their alleged influence over the Federal Reserve System.' The Ascent of Money: A Financial History of the World For China, the first Opium War ushered in an era of humili THE ASCENT OF MONEY ation. The Ascent of Money: A Financial History of the World
Chimerica To many, financial history is just so much water under the bridge - ancient history, like the history of imperial China. The Ascent of Money: A Financial History of the World For some time, concern has been mounting in the US Congress about what is seen as unfair competition and currency manipulation by China, and the worse the recession gets in the United States, the louder the complaints are likely to grow. The Ascent of Money: A Financial History of the World Rising commodity prices, in turn, are intensifying inflationary pressures for China, necessitating the imposition of ' Having paid $5 billion for a 9.9 The Ascent of Money: A Financial History of the World per cent stake in Morgan Stanley in December 2007, the China Investment Corporation's chairman Lou Jiwei compared the opportunity to a rabbit appearing in front of a farmer. The Ascent of Money: A Financial History of the World From ancient Mesopotamia to present-day China, in short, the ascent of money has been one of the driving forces behind human progress: a complex process of innovation, inter mediation and integration that has been as vital as the advance of science or the spread of law in mankind's escape from the drudgery of subsistence agriculture and the misery of the Malthu sian trap. The Ascent of Money: A Financial History of the World See also Alain Le Pichon, China Trade and Empire: Jardine, Matheson Ps Co. and the Origins of British Rule in Hong Kong, x827-1843 (Oxford/ New York, 2oo6). The Ascent of Money: A Financial History of the World Agtmael, Antoine van 288 advertising 196 Aguilera, Jaime Rold6s 310-11 Afghanistan 6 aid: Africa: conditions on 307 aid to 307 limited usefulness 307 British investment in z93 and microfinance 179 China and 338-9 to developing countries 174, gold trade 25 307 slaves from z3 Aldrich-Vreeland Act 301 African-American people 249-5o, Algeria 32 z67-8 Allende, Salvador ZIz-13, 214, `Africas within' 13 216-17 age see pensions Allison, Graham zz3 agriculture: All State insurance company East-West comparison 285 181-1 finance and z, 53, 184, 342 Al Qaeda z23 INDEX Alsace 144 Amboyna 13 0 , 1 34 American Civil War 91-7, zz6 American Dream Downpayment Act 267 American Home Mortgage z7z Americas, conquest of 2-85 Amsterdam 1x7, 132, 136, 137 as financial centre 74-5, 87, 117 Amsterdam Exchange Bank (Wisselbank) 48-9, 127, 132, 137, 174 anarchists 17 Andersen (Arthur) 173 Andhra Pradesh z8o Angell, Norman 297 Angola z annuities 73-4, 76, 193 anthrax 2 .2 The Ascent of Money: A Financial History of the World Chongqing 332-3 Christians: in China 292 and money 1, 15 and usury 35, 44, 71, 73 - 4 Churchill, Sir Winston 204 Citadel Investment Group 2, 225, 226, 228 Citigroup 337, 352, 395 City Bank of New York 352 civil rights 250 civil services 75-6 class conflicts 143 clay tokens and tablets 27-31 clergymen x91-1 climate change 14- =5, 176, 223 - 4,356 INDEX Clinton, Bill 65, 219, 276 Clive, Robert x35 coal 235, x85 Cobbett, William 99 Coen, Jan Pieterszoon 134 co-evolution 350 cognitive traps 345 - 7 coins/coinage 24-5, 29, 31,4z, 47 alternatives to 25, 27, 30; see also clay tokens and tablets; electronic money; paper money debasements, shortages and depreciations 25, 75, 177, 1 39, 141, 150, 307; see also currency devaluations shortages z5 collateral see shares collateralized obligations: debt (CDOs) 8, 12, 26o, 268-9,271-1,336 mortgage 26o Colombia 18, 98, 1z5, 171, 219 Colonial Loans Act 294 colonial securities 193-4 Colonial Stock Act 194 Columbus, Christopher 19 commercial banks 56 Commission for the Formalization of Informal Property z77 commodity markets and prices 1o, zz6 surge in (zooos) 6, 10, 332, 338, 339 and war 10, 300, 339 communications, improvements in 287,z9 6 Communists 17 and Great Depression z4z, 2-43, z46 and money 17-18, 364 Communist states: and capital debt market 308 central planning 19, 33z and labour 18-I9 and money 18 Community Reinvestment Act 2-51 companies: conglomeration 351 creation of 61, 156 extinction among 349 - 50 35 1 invention and development of 120 new types 352-4, 35 6 regulation of 156, 356-7 Company of the Indies (Compagnie des Indes) see Mississippi Company Company of the West (Compagnie &Occident) 140, 141-2 competition 350 computers 116, 166 concentration of ownership 351, 352 condottieri 69-71 conduits 5, 9, 27 1 Confederacy gz-8 confidence intervals 189, 346, 379 conglomerates 352 conjunction fallacy 345 - 6 conquistadors 1, 19-23, z9, 55 Conservative party: housing policies 2.51-2 The Ascent of Money: A Financial History of the World for soldiers 195 and US economic triumph 3 war and 187, 202 - 4, z24 welfare state and 199, 228 see also hedge funds INDEX `intelligent design' in financial evolution 54, 356 interbank transactions see banks interest: calculation of 30, 3z-3 as compensation for risk 34 origins of 30, 71 rates see interest rates securitization of 341 Interest Equalization Act 306-7 interest rates: China and 334 - 5 extortionate 37, 38-41, 281 falling 39, 335 and hyperinflation rob and property ownership 253, 268, 2,69 set by market 309 swaps 4, 22-7, 37-3 International Bank for Reconstruction and Development see World Bank International Development Association see World Bank International Monetary Fund (IMF ): and Argentina 114 and Asian crisis (1997-8) 3 Tz founding of 3o6 loans and conditions 308-10 opposition to 309-14 as US agents 308-I I Internet 166 banking 353 Enron and 171, 172 see also dot.com The Ascent of Money: A Financial History of the World They were celebrating two U.S.-China trade deals, but Al Gore, caught by surprise, looked more than vaguely ill. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country For those workers, there was some good news in the pro ceedings in the Great Hall: the announcement of new deals with Boeing (to purchase planes made in the United States) and General Motors (to THE TERMS OF TRADE 179 build new auto manufacturing facilities in China). The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Sooner or later, lower-wage workers in China, following in the footsteps of the Japanese and South Koreans, would drain away most of the high-wage manufacturing jobs in the American industrial heartland. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Protestant denominations, especially of the more evangelical stripe, made early inroads in China. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The elder McCain was in the Pacific during World War II, the younger in the South China Sea during Vietnam. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Board of Education ( 1 954) 116 Browne, Robert, 8 Browner, Carol, 218 Bryan, William Jennings, 58, 133 Buchanan, James, 116 Buchanan, Pay 41, 43 INDEX 287 Buckley, William F, 70, tot, 103 Budget Committee, U.S. Senate, 136 Buffett, Warren, 99, 136 Bush, George H. W. and abortion, 33 in China, 195 and creation of 'more perfect union,' 236 and elections of 1988, 72, 102, 103-4, 150-52,219-20 and elections of 1992, log, 191 and environment, 219-20 and faith-based Republicans, 67 and funding of George W.'s campaign, 228,229 and individualism, 102, 103-4, 107 Roberts appointment by, log Schultz's relationship with, 196 Supreme Court nominations of, 117-IS and taxes, io6 and trade, 18q, igo as vice president, 33 Bush, George W. and abortion, 73 Allen as successor to, 38 baseball interests of, 195 Biden's views about, 20g-co commander in chief role of, 34, 88, 89, 110, 208, 211 congressional relations with, 87-88, 174 criticisms of Wilson (Pete) by, 50 and elections of 1994, 152 and elections of 2000, 73, 107, 120, 121, 152, 153. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Gore (2000), 120-21 Calhoun,John, 167 California elections of 1994 in, 49-50 health care in, 97 immigrants in, 43,46,47,49-50 and local vs. federal authority, 155 campaign politics, 6, 228, 230,236-37, 2 4 1 , 2 43 Cannon, Joseph 'Uncle Joe,' 169 Carnegie, Andrew, 205 Carnegie Corporation, t 18 Carrick, Bill, 5o Carroll, John, 164 Carson, Rachel, 217 Carter, Jimmy as commander-in-chief, 16, 177 and economic issues, 134 and elections of 1976, 69-70, 218-19,222 and elections of t980, 71, 161 and environment, 218-I9, 222 and faith-based politics, 69, 70, 71, 72 and Iran hostage crisis, 161 Matthews as speechwriter for, 172 and presidential power, 159-61 Taylor appointment by, 88 Carvey, Dana, 191 Caterpillar plant, 187 288 INDEX Catholics/Catholicism and abortion, 67, 70 and contraceptives, 68 and Coughlin's radio broadcasts, 236 and elections of 1884, 66 and fading of top-down authority, 8 and foreign relations, 2 0 3 - 4 and immigration, 13, 45, 4 6 , 47 and politics, 66-67, 70 and religious intolerance, 61, 66-67 and social welfare, 65 and who is a person, 32 See also Vatican cell phones, 78, 86 Chapman, William, 119 Chavez, Hugo, 51 'checks and balances,' 10, 146 Cheney, Lynne, 213 Cheney, Richard 'Dick,' 86, 109, 11o, 153, 176,208,209,212-14,219,225 Chicago, Illinois, 21-22, 190, 2o6, 241 China Bush (George H. W.)in,195 coal sales to, 221 and foreign relations, 195, 207 Gore in, 178-8o lack of argument in, 4 missionaries in, 2o2 and U.S. debt, 125, 136, 138, 139, 14 0 U.S. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country and abortion, 15, 25, 30, 31, 68 creation of, 112-13 and elections of 2000, 118, 120-21 foreign-born justics on, 42 and free speech, 75, 81, 84, 85, 86 and individualism, 99, 105 lifetime appointment of justices to, 111, 112 nominations to, 108-10,117-18, 122, 123 and presidential power, 116, 162, 167, 168, 170, 176 race decisions of, 116 religious decisions by, 58, 6o, 67, 68 Roosevelt's 'packing' of, 116 and slavery, 26,3r,121 and terrorists, 34-35 Thomas nomination to, 75 and unconstitutionality of acts of Congress, 115-16 and who is a person, 25, 26, 30, 31, 34 - 35 See also specific justice or decision Taft, William Howard, 16g,205 Taliban, 18,175,,97,210,21T Taney, Roger B., 31, 1 16, 168 304 INDEX tariffs, trade, 184-85, 189, 192, 193 taxes in colonial America, 130 and creation of 'more perfect union,' 235 and economic issues, 126, 127, 128, 130, 132, , 34, 1 35 - 3 6 , , 3 8 Edwards' views about, 240 and immigration, 43, 5 1 and individualism, 98, 99, 101, 102-3, 10 4, 10 7 and presidential power, 166 and Reagan administration, 134, 1 35, 2 45 and religion, 72 and trade, 184 and U.S. role in global leadership, 243 Taylor, Anna Diggs, 88-89 technology, 84, 86-89, 207, 221, 239 Tennessee federal versus local authority in, 7 as frontier, 6 religion and science in, 56, 57-58 Scopes trial in, 56, 58 Tennessee Valley Authority, 100 Tenth Amendment, 147 territorial expansion, 166, 168-69, 204 terrorism and Bush (George W.) administration, 34, 208, 211 and environment, 220-21 and foreign relations, 208, 211 and free speech, 86-91 and freedom of the press, 76-77 and immigration, 44, 45 and local vs. federal authority, 157-58 and military tribunals, t to and optimism, 242 and presidential power, 176 racial, 149 and Supreme Court nominations, tog and U.S. role in global leadership, 243 and who is a person, 26, 34-35 See also national security Texas Bible Belt of, 72 Bush roots in, 152-53 legal system in, u8-20 Thirteen American Arguments and attitudes toward role of government, 14 Declaration of Independence as origin of, 7 importance of, 4-5 and sense of perspective, 17-18 what are the, 7 See also spec argument Thomas, Clarence, 75, 117-18, 124 Thompson, Fred, 108, 1 to, 123, 175 Thompson, Gordon, 19r-92,193 Thomson, Meldrim, Jr., 103 Thoreau, Henry David, 214,216-17 Thurmond,Strom,136 Tillman, Benjamin R. 'Pitchfork Ben,' 235 Time magazine, 16g Tocqueville, Alexis de, 19, 28, 78, 99, 167 trade and American Revolution, 184 as an American Argument, 7, 178-93 in beaver pelts, 183 China-U.S., The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country there's no united states no middle east no Germany no japan no russia no china no Iran no vietnam etc etc there's just one big global governmet a shadow govern ment the international finanical government which executed 173 174 THE GREAT DERANGEMENT 9/II AND THE DERANGEMENT DF TRUTH 175 a coup d star on november 21, 1963~andorchestrated the at tack on 9/II. The Great Derangement: A Terrifying True Story of War, Politics, and Religion 309 310 From my point of view 9/11 and all the subsequent di sasters/humiliations of the Bush years-from Katrina, which made parts of America look like Bangladesh, to the constant battering of the dollar against' the Euro, to the Wal-Mart ization of the once-proud industrial landscape and the com mensurate rise of China, to the collapsed real estate market that led to waves of Brits and Germans buying up chunks of Brook lyn and lower Manhattan out of sheer boredom, hell, even to losing to Argentina in basketball-all this has Americans ach ing for some way to feel good again, to flex their muscles. The Great Derangement: A Terrifying True Story of War, Politics, and Religion In China, the Christian churches were overwhelm- 244 GOD IS NOT GREAT ingly identified with the foreign 'concessions' extracted by imperial powers, which were among the principal causes of the revolution in the first place. God Is Not Great: How Religion Poisons Everything This is not to explain or excuse the killing of priests and nuns and the desecration of churches-any more than one should excuse the burning of churches and the murder of clergy in Spain dur ing the struggle of the Spanish republic against Catholic fascism-but the long association of religion with corrupt secular power has meant that most nations have to go through at least one anticlerical phase, from Cromwell through Henry VIII to the French Revolution to the Risorgimento, and in the conditions of warfare and collapse that ob tained in Russia and China these interludes were exceptionally brutal ones. God Is Not Great: How Religion Poisons Everything (I might add, though, that no serious Christian ought to hope for the restoration of religion as it was in either country: the church in Russia was the protector of serfdom and the author of anti-Jewish pogroms, and in China the missionary and the tight-fisted trader and concessionaire were partners in crime.) God Is Not Great: How Religion Poisons Everything If god has revealed himself, how is it that he has allowed so many centuries to elapse before informing the Chinese? 'Seek knowledge even if it is in China,' said the Prophet Muhammad, un consciously revealing that the greatest civilization in the world at that time was on the very outer rim of his awareness.) God Is Not Great: How Religion Poisons Everything 262-64,267-69 and relationship between morality and religion, 213, 229-30 totalitarianism and, 230, 234-35, 2 44 - 45, 2 47, 2 5 2 atomism, 64, 258-6o atonement, 205, W8-1o Auden, W. H., 63,75 Augustine, Saint, 7, 47, 6 4, 2 33, 250, 260 Augustus, Emperor of Rome, H2,114 1 2 59 authority, argument from, 150 Ayer, A. J., 185-87 Azami, Yusra al-, 24 Aziz, Tariq, 34 306 Index Bacon, Francis, 151, 26o, 270 Baden-Powell, Robert, 226-27 Baghdad, 25,68 Bamiyan, Buddha statues at, 31 Baptists, Baptism, u, 35, 2 34 Barbary states, 181 Barbelo, 113-14 Barbie, Klaus, 240-41 Bathylychnops exilis, 83 Bayle, Pierre, 26o, 263-64 BBC, 145-46, 195 Beg, Mirza Aslam, 59 Beirut, 19-20 Belfast, 18, 20 Belgrade, 20-21 believers, beliefs, 16, 71, 99, 253-55 arrogance of, Io-11 design arguments and, 75, 79, 96 and emancipation of India, 181-82 rational resistance and, 254 - 55, 259-60,265-68,270-71 relationship between morality and, 184-94,205-15,229-30,242,264 tolerance of, 31, 133-34 Bellow, Saul, 94,273 Bengal, 44 Ben-Gurion, David, 102,272 Bernal, J. D., 250 Besm, Monica, 147-48 Bethlehem, 275 biblical fictions and, 111, 114-15, 117 destructiveness of religion in, 22-24 Bhagavad Gita, 57 Bible, 35, 59-6o, 125, 131-33, 136, 1 47, 179,204,251 author of, 104-5 on fulfilling prophecy, Ioq-To hadiths and, 132-33 Hitchens's childhood and, 2-4 rational resistance and, 255, 264, 270 revelation arguments and, 98-107 see also New Testament; Old Testament bin Baz, Abd al-AZiZ, 227 bin Laden, Osama, 27, 32, 59, 275 Blackburn, Simon, 278 blacks, 35-36, 64, 251 Mormons and, 166-67 see also racism; slaves, slavery blood sacrifice, 6, 53,109, 231, 28o, 282 child abuse and, 223-26 and immorality of religion, 205-8, 212 Bloomberg, Michael, 50 Bombay, 20 Bonhoeffer, Dietrich, 7, 241 Book of Mormon, 161-64, 167 Borges, Jorge Luis, 113-14 Bosnia, 16, 21-22, 27-28, 126 Branch, Taylor, 173, 179-80 Brazil, 45 - 48 Brideshead Revisited (Waugh), 186 Brodie, Fawn, 162, 164, 167 Brothers Karamazov, The (Dostoyevsky), 51, 217, 228, 230 Brown, John, 177 Buddha, 31, 89, 185, 199-202 Sri Lanka and, 199-too Buddhists, Buddhism, 36, 115, 185, 198-204 inJapan, 2oo-2o3 Sri Lanka and, 198-too Bukhari, 132 Burgess shale, 91-94,275 Bush, George W., 32, 49, 1 49 Butler, Bishop, 185-86 Butler, Samuel, 156-57 Calas, Jean, 264 Calcutta, 43 - 44 Calvin, John, 67, 233-34, 2 75 Calvinists, Calvinism, 11, 177, 251, 261-62 Cambodia, 140,252 Cambrian explosion, gi-q2 Caprichos, Los (Goya), 198 Captive Mind, The (Milosz), 245-46 INDEX cargo cults, 155-58 Castro, Fidel, 247 Catholics, Catholicism, 12-13,36-37, 64, 89, 110-11, 117, 125, 1 33, 1 5 0 , 16o, 186-87, 279 and blaming Jews for Jesus's Crucifixion, 111, 251 child abuse and, 2'q-z2, 227-28 and destructiveness of religion, 1 7 -2 3, 27-28, 30, 34, 36 health issues and, 45-48, 50 miracles and, 145, 147-48 pedophilia among, 4, 51-52, 228 rational resistance and, 262--62 and relationship between morality and religion, 187,190-92, 210, 212 totalitarianism and, 232, 234-41, 2 44 - 45, 2 47, 2 50 - 5 1 Celestial Mechanics (Laplace), 66 cervical cancer, 48, 226 Chambers, Whittaker, 79 chaos theory, 93-94 Chaucer, Geoffrey, 16o child abuse, 217-28 abortion and, 220-22 circumcision and, 223-26 immoral teaching and practice in, 220-28 indoctrination and, 219-20 masturbation taboo and, 226-28 and threat of eternal punishment, 218-20 torture and, 218-19, 228 Child in Time, The (McEwan), 16o China, 200, 231, 254, 262 totalitarianism and, 2 43 - 44, 2 5 2 Christians, Christianity, 54-55, 65,68 70, 1oq,112-15,123-25,127-33, 1 35 - 37, 161, 166-68, 170, 175-80, 18 5, 1 93 apocalypse and, 59-6o biblical fictions and, 112,114-15, 117, 121 cargo cults and, 157-58 3 0 7 child abuse and, 218-20, 223, 226 - 27 conversion of Jews and Muslims to, 40-41 and destructiveness of religion, 18-Iq, 21,23-29,33,36 Eastern beliefs and, 198-too health issues and, 47, 51-52 King and, 179-8o Koran and, 2-28-z9 miracles and, 141-43, 148-49 rational resistance and, 254-55, 259-6o, 262-64, 267-70, 272-75 reformism in, 136,175 and relationship between morality and religion, 188-91, 2o6, 209-10, 212 revelation arguments and, 97-101, 103 slavery and, 2-66-67, 173, 176-78 totalitarianism and, 2 33 - 47, 2 49 - 5 2 Cicero, 259, 267-68 circumcision, 273-74,283 child abuse and, 223-26 health issues and, 49-51 Civil War, 166-67, 178-79, 185 Clouds, The (Aristophanes), 257-58 Cobbett, William, 77 Communists, Communism, 152 King and, 179-8o totalitarianism and, 23o, 232, 234-35, 2 37, 2 4 0 , 2 45 - 49 Congress, U.S., 33, 172, 181 Conrad,Joseph, 73 conscience, 256-57,264 Constitution, U.S., 33,177 Contribution to the Critique of Hegel i Philosophy of Right (Marx), 9-2-o Coplestone, Father, 69-70 cosmos, 65-66, 141, 229, 243 age of, 57-58 design arguments and, 74, 79-80 place of humans in, 91-95 creationism, creation stories, 3-4, 8-Io, 52, 54, ro6, 2 49, 269, 282 3o8 Index creationism (cant.) God Is Not Great: How Religion Poisons Everything Though it seems unlikely that any U.S. politician will pay heed, Islamists are motivated by the same U.S. interventionist foreign policies that moti vated them even before 1996, when Osama bin Laden enumerated those policies in al-Qaeda's declaration of war on the United States: • U.S. military and civilian presence on the Arabian Peninsula • U.S. exploitation of Muslim energy resources • Unqualified U.S. support for Israel • The U.S. military presence in Muslim lands outside the Arabian Penin sula • U.S. support for anti-Muslin nations, especially India, Russia, and China • U.S. protection of Arab tyrannies, especially Saudi Arabia and Egypt' Training in rocket science is not required to understand the motivation of al-Qaeda and its allies-they have described it in a flood of statements, books, essays, and interviews-nor is it needed to understand that more than three-quarters of Muslims worldwide share bin Laden's perception Introduction to the Paperback Edition that U.S. foreign policy is meant to undermine or destroy Islam.' Marching Toward Hell: America and Islam After Iraq U.S. support for states oppressing Muslims, especially China, India, and Russia 4. Marching Toward Hell: America and Islam After Iraq Casey, William J., 63, 283n CENTO (Central Treaty Organization), 92 Central Command (CENTCOM), U.S., 104 Central Intelligence Agency (CIA), 4, 14, 16, 17, 18, 42, 45, 46, 47, 61, 64,68,72,82,89,90,91,219, 220-21, 272n, 282n-84n, 292n, 295n Afghan-Soviet conflict and, 37-39, 101,106-7 author's career at, 55-57 bin Laden unit of, 287n, 306n Counterterrorist Center (CTC) of, 122, 273n, 284n and failure to kill bin Laden, 109-10 FBI's relationship with, 273n-74n, 279n-80n Iraq War and, 122 rendition program of, 156, 316n-18n terrorist training camps and, 32-35, 277n Zarqawi targeting episode and, 125-27 Chalabi, Ahmed, 63, 80,269 Chase, Salmon E, 190 Chavez, Hugo, 223 Chechnya, xvi, 150,153,168-69,207, 230,278n Cheney, Dick, xiii, 64,101, 102;197, 226,243,269 Chile, 153 China, People's Republic of, 73, 98, 150,316n Muslims of, 150, 230-31, 319n U.S. debt held by, 74, 251 Chirac, Jacques, 202, 223 Chivers, C. l., Marching Toward Hell: America and Islam After Iraq China, India, Taiwan, Singapore, Brunei, and Vietnam were also affected. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Neither man specified the real reason AIG, Fannie, and Freddie were nationalized: to protect their 210 BAILOUT NATION counterparties and debt holders, including major financial firms and foreign institutions, such as Japan's central bank, China's sovereign wealth fund, and Saudi Arabia's holdings, among others. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy f course, none of this would really have mattered if a few hedge funds and a much larger number o£ institutional investors including foreign central banks-didn't suck up so much of this sus pect paper (China evidently bought $10 billion in subprime mortgages). Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy See also Casino capitalism; Free market system Carter Administration, 254 Case-Shiller indexes, 264 Casino capitalism, 24, 226-227, 247, 273-281 Cayne, Jimmy, 187, 189, 200 CDC', 109 Center for Responsible Lending, 240 Central bank, see Federal Reserve System attempted development of, 15-16 dissolution of, 19 roles of, 169 CEOs/executives: annual compensation, 214 attitudes of, 215 blame/responsibility of, 232 bonuses after bailout, 223, 275 incentive programs, 196-198 listing of bonus/incentive packages, 200-201 overcompensation of, 196, 198-199 young CEOs, 196 Chaos, influential factors, 90 Chapter 11 bankruptcy, 200 Chapter 11 reorganization, 41, 276 Chapter 7 bankruptcy, 41, 43 Chartered banks, jurisdiction over, 238 318 INDEX Cheap money, 94, 98-99, 105 China: as bailout lender, 210, 227, 247 economic growth, 102 U.S. treasuries purchase, 102 China Construction Bank, 218 Chrysler Corporation, 6, 11, 38-44, 53, 102, 156, 164-165,178 Cisco, 196 Citadel Investment Group, 187 Citibank, 176 Citigroup: bailout money to, 222-224, 227, 274 collapse of, 6, 12, 167, 178, 181, 211-225,273 historical perspectives, 212 merger with Travelers Group, 212 structured investment vehicles (SIVs), 215-216 Citigroup Authorization Act, 213 Civilian Conservation Corps (CCC), 30 Civil Works Administration (CWA), 30 Clear Channel Communications, 150 Clinton, Bill, 87, 135, 138, 152, 232, 237-238 CMGI, 196 Coal industry, 23 Cohn, Gary, 200 Collateralized debt obligations (CDOs), 109,111,113-115,135,158, 214-215,224,232,247,264,280 Collateralized loan obligations (CLOs), 109,114 Collateralized mortgage obligations (CMOs), 109, 114,158 Commercial banking industry, 131, 137, 145, 204, 214, 256 Commercial mortgages, 178 Commercial Paper Funding Facility LLC (CPFF), 181 Commercial property lending (CMBs), 109,114 Commercial real estate loans, 224 Commodities market, 94, 106, 180 Commodity Futures Modernization Act (CFMA), 131, 137-141, 15 5 5-156, 235, 237, 244, 279 Commodity Futures Trading Commission (CFTC), 131, 140, 237 Communications Act of 1934, 150 Community Reinvestment Act (CRA), 251,253 -257, 257,261 Compensation systems, 142,196 Competition, benefits of, 10, 22-23 Complexity, 162 Computer industry, 10, 23 Computer software, mortgage application evaluation, 124 Confessional season, 83 Congress: bipartisanship, 260 blame/responsibility of, 22, 232, 235, 244-245 Glass-Steagall Act, repeal of, 213, 237, 244 National Monetary Commission, 19 Public-Private Investment Program (PPIP) and, 224-225 Troubled Assets Relief Program (TARP), 24,175-176,178 Conservatorships, 49, 180, 203, 259 Construction industry, 26 Consumer habits, 102, 197, 210 Consumer price index (CPI), 151-153 Consumer spending, 99 Continental Illinois Bank, 11, 212, 218 Convertible preferred bonds, 275 Corporate governance, 198-199 Corporate welfare, 35, 37 Correlation vs. causation error, 207 Corrigan, Gerry, 55 Corruption, 247 Cost of living adjustment (COLA), 152 Counterfeiting, 17 Counterparties, 192, 205, 210, 227, 275, 279-280 Counterparty risk, 168 Countrywide Financial, 146, 196, 200, 219, 239, 259, 274 Covel, Michael, 289 Cox, Christopher, 241-242 Creative destruction, 10, 47-48, 177 Credit crunch, 6, 19, 26, 156, 180, 219, 241 Index 319 Credit default swaps (CDSs), 109, 115, 131, 135,137-138,141-142,156, 166-167,177,192,205-206,237, 264,279-280 Credit lines, 27, 55, 95, 208, 218 Credit market: attempted rescue in 2007, 12 boom-and-bust cycle, 65, 101-103 collapse of, 28, 112-113 creation of (2003-2007), 114-115 credit bubble, 66, 87, 90, 128-129, 258 credit cards, 212 crisis in, 14, 48, 61, 65, 74, 87, 135, 154, 164,181-183,236,264,288 frozen, 203, 215 unregulated credit, 32 Creditors, unsecured, 275 Credit rating, 111, 113, 119-120, 204 Credit rating agencies, 158. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy and of the Murdoch family: the fact that, against all indications, character, and personal beliefs, one day in 1998 he upped and left his wife for a woman thirty-eight years his junior--Wendi Deng, from Shandong Province in China. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Oh, and there is the South China Morning Post For $300 mil lion he converts a minority stake into a controlling interest because The Man Who Owns the News 1 193 Dow Jones, with 19 percent, decides it doesn't want to be in busi ness with Murdoch and agrees to sell him its shares. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch In his continuing effort to escape his boring life in Hollywood, and to control the distribution heavens, he makes his investment in Star, a satellite network in China, in 1993. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Jake Cherry is, in 1987, a fifty-year-old engineer working in China. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch She's the one person able to turn the hierarchies of a Chinese office and even an American company in China assumes such hierarchies-into a level playing field. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch He says, when I ask him about Wendi's politics, that she has no politics, really-that growing up in China has made her sus picious of politicians. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Mr. Murdoch's third wife, Wendi, is a mainland Chinese who once worked for his Hong Kong-based satel lite broadcaster, Star TV Her role in managing investments and honing elite connections in China has underscored uncertainties within the Murdoch family about how the 34 2 I MICHAEL WOLFF family-controlled News Corporation will be run after Mr. Murdoch, 76, retires or dies. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Chernin, Peter, 41-46, 48-49, 145, 163, 217, 218,219,281,282,288,289,298,302-4, 333, 349, 363, 364, 375, 393, 400 Cherry, Jake and Joyce, 320, 321-22 Chicago Journal of Commerce, 170 Chicago Sua-Times, 177, 188-89, 209 Chicago Tribune, 174, 342 China, 103, 104, 163, 252, 297, 311, 313, 319, 524,529-32,334,341-42,385,403 Chippindale, Peter, 200 Chisholm, Sam, 99, 368 Chris-Craft Industries, 181 Clinger, Michael, 310 Clinton, Bill, 186, 198, 219, 280, 281, 312, 391 Clinton, Hillary, 280, 281, 390, 397 CNBC, 161, 16738, 191, 255, 316, 380 CNN, 22, 47, 236, 24-6,282, 306, 311, 314 Collegiate School, 248-49 Columbia Pictures, 177 Comcast, 316 Commonwealth Bank, Sydney, 75, 147 Cond€ Nast, 233 Cook, Jane Bancroft, 79, 88, 89, 221 Costa, Michael, 222, 223, 291, 381 Costello, Frank, 207 Courier-Journal (Louisville), 93, 301 Courier-Mail (Brisbane, Australia), 70, 101, 204 Cox, Beatrice, 55 Cox,Bill, Jr.,27,55,89,164,223,228,382, 385 Cox, Billy, III, 27-29,53, 54-56,89,90,91, 164, 166, 383 Cox, James Middleton, 94 Cox, Jessie Bancroft, 24, 27, 88, 89,1+4 Cox, William, 89 Cox Enterprises, 94 Cox family, 93, 94 Crovitz, L. Gordon, 6, 79, 80-81 Crowe, Russell, 199 Cruden Investments, 61 Cudlipp, Hugh, 131 Cumberland Newspapers Group (Australia), 74 Dacre, Lord, 242 Daily Express (London), 71-72, 76, 249 Daily Mail (London), 67, 132, 133, 176 Daily Mirror (London), 237,250 Daily Mirror (Sydney), 200, 265 Daily News (New York), 35, 152, 233, 235, 340,401 Daily Sketch (London), 132 Daily Telegraph (London), 65, 212, 236, 248, 374 Daily Telegraph (Sydney), 102 Dalton School, 96, 100, 150, 207 Darling, Sir James, 68, 69 Davey, Gary, 326-27 Davis, Marvin, 186,187 Dawson, Geoffrey, 65 De Kretser, Leela, 13,589 Den of Thieves (Stewart), 172 Denver Trust, 379, 387 Delphi company, 330 DaVoe, Dave, 38, 251, 288, 289, 381 Diana, Princess of Wales, 173-74,178 Diller, Barry, 42,190,297,298,318-19, 335, 395 Dimbleby David, 126 Dimon, Jamie, 118 DirerTV, 111, 119,120 Disney, 43, 44, 308 Dolan family, 401 Dow, Charles, 86 Dow Jones. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 168, 199, 217-19, 259, 271, 280, 283, 288-91,342,375,390-91,393,397 Giuliani, Rudy, 216-17,277,331 Glaser, Milton, 157 Goldenson, Leonard, 21, 22 Goldman Sachs, 147, 166, 284, 285, 291, 381 Goldsmith, Sir James, 179, 182, 183 Golub, Harvey, 78, 79, 138, 144 Goodale, James, 20 Good Times, Bad Times (Evans), 181, 232 Goth, Lizzie, 28-29, 53, 56, 90, 91, 166, 387 Gould, Jay, 145 GQmagazine, 10 Graham, Donald, 28, 47, 93, 258 Graham, Katharine, 21, 93, 149, 159 Granada, 310 Greene, Fanny Govetu, 61 Greene, Marie Grace (grandmother), 62 Greene, Rupert (grandfather), 61-62 Greene, William Henry, 61 Greenspan, Brad, 256 Grimes, William Henry, 260, 261 Greening, Matt, 300 Grove, Andy, 172, 331 Groner and Jahr publishers, 241-42 Guardian (London), 99, 235 Guthrie, Michelle, 366 Hamill, Pete, 212 Hamilton, Gen. Ian, 64 Hamilton, William Peter, 260,261 Hammer, Roy, 47, 49, 78, 139 Handbury Helen Murdoch (sister), 301-2 Handbury Matt (nephew), 302 Hardy, Bert, 18--19,126,128,130,136 Harper & Row publishers, 48,192 HarperGollins: cancellation o£ China book, 163, 252; Judith Regan and, 214-16, 218-19 INDEX 439 Hart, Clare, 222-23 Harvard University, 245, 277 HBO, 185 Hearst, William Randolph, 66, 71, 93, 203 Hearst family, 93 Hemenway and Barnes, 29, 47, 49, 78, 90, 91, 92, 164, 384 Hendrix, Lynn P., 379, 387 Herald (Melbourne), 51 Herald and Weekly Times Ltd., The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Murdoch, Sir Keith (father), l5, 21, 57, 59, 60, 61-68, 70, 73, 87, 263, 264-65, 282, 501 7 339 Murdoch, Lachlan (son), 2-3,32,41-42,43, 44-45, 50, 52, 54, 72, 95, 97, 99, 100-102, 104, 105, 106, 107, 111, 150, 154, 199, 200, 204, 212, 295, 328, 333, 336,347, 351, 352, 353,354,356,359-67,372,373,393 Murdoch, Patrick (grandfather), 63-64 Murdoch, Prudence (daughter), 12, 14, 32, INDEX 441 76, 95-97, 101, 150, 259, 294, 295, 326-27,328,352 53,354,356-60,369, 373,396 Murdoch, Rupert: age issue, 11-12, 35, 37, 40-41,52,106-9,252,394,402; appearance, 12, 15, 33, 37, 294, 328-29; Australianism of, 51, 120, 126, 129, 263; author's relationship with, 2, 9-14; branding statements, 2, 3; as 'change agent,' 2, 5, 122, 190; childhood, 59, 68--69; children and dynasty, 351-76 (see also specific children); China interests, 103, 104, 163, 252, 297, 311, 313, 319, 324,329-32,334,341-42,385; columnists of, and expression of personal position, 271-77; dealmaking style, 115, 118-19,124-25,130,143,145-60,166, 174, 176, 178-94, 279, 349; debt, 75-76, 173,178,187,193,294-95,296,310; dislike and demonizing of, 6, 7-8, 9, 11, 35, 56-57, 115, 119, 125, 133-34, 159, 162, 181, 225, 232; editing style, 177, 202; as entrepreneur, 3055-6, 308, 309; gossip, love of, 17, 47, 77, 92, 134, 157, 239, 249, 271, 309, 390, 391, 397; health, 40, 69, 174, 219, 331, 332-33; legacy concerns, 4, 12, 52; lifestyle, 13, 16, 17, 33-34, 328, 351, 356, 358; love affair with junior staffer, 280-81; management style and hiring, 18, 46, 50, 210-17, 225-26, 231-32,257-39,241,243,293,297, 299-300; model for acquisitions and takeovers, 74; mogul ethic, 190; net worth, 192; newsrooms of, 200-201; penuriousness, 33, 34, 299, 309, 314, 353, 354; personality and character, 1, 15, 16, 17-18, 20, 33, 34-35, 62, 68-69, 71, 116, 120-21, 136-37, 143, 146, 147, 174, 181, 234,239-41,257,277-78,295,299,300, 309, 311, 367-68, 393-402; politics of, 259-86, 395, 396,397; power of, 249 51, 266-68; religious roots, 63,130; on reporters, 231-32; retirement, 393; rise of, summary, 293-94; ruthless reputation, 2, 34, 181, 327, 328; settlement agreement for Anna's children, 45-46, 107, 109, 327, 353-55; siblings, 13-14, 76, 259, 301-2; successor issue, 41-42, 445,50,99,102,104,105,108-9,329, 333, 348, 352, 355, 361, 363-65, 371, 376; tabloids and, 23,198-220; as technologically resistant, 292-93, 308, 330, 337; travel and dislocation, 76, 134-35,174, 190, 239, 393; up-close of, as a newsman, 389-91; visionary view of media, 176; as world's largest publisher, 177. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch '21' Club, 144, 153, 386 USA Today, 22, 171, 178 Vanderbilt, Cornelius W., 155 Vanity Fair, 10, 402 Varadmajan, Tunku, 103 Vassar College, 98 Viacom, 39 Village Voice, 48,155-56, 158, 160, 177, 188-89,530 Virgin Media, 375 Von Holtzbrinck, Dieter, 382 Wachtell, Lipton, 164, 223, 227, 229, 251, 253, 285, 289 Wade, Rebekah, 8, 210-11, 213-14, 569 446 I INDEX Wall Street Journal (Dow Jones): alternative buyers to Murdoch, 25599, 286, 383, 384; as anti-Murdoch, 116, 225, 227-28, 256; Bancroft family (see Bancroft family); Dow Jones board, 28, 47, 53, 77, 7891, 110-11, 117-18, 138,142,163--64, 222,228--29, 258, 28495, 381, 382; Dow Jones sells Murdoch South China Morning Post, 193; editorial agreement with Murdoch, 6, 227, 230, 232, 233, 250, 253-54, 283,285,288--91, 38495; editorial pages and politics, 257-61, 284; as elite, 57, 84, 137, 232; history of, 86-92,168-72,177,193-94; incorporation in Delaware, 379; Kann at, 25-26, 27, 28, 29, 76-77, 118, 139-40, 171, 193, 258; Kann successor issue, 7891; library of, 179; missteps and missed deals, technological, 315-16; Murdoch in articles, 177,185; Murdoch pursuit and purchase of, 1-2, 5, 7, 8-9, 23-30,46-53,53-57,76-77,83-85, 109-19, 137-45, 161, 163, 163-68, 194-95,197-98,214,221-24,226-30, 251-54,284,288--91,348-49,377-88; Murdoch running of, 3, 5-6, 391-93, 400; Murdoch takeover, media coverage, 3, 6, 8, 9, 48; News Corp.'s The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 'China Plans to Purchase U.S. Goods in a Big Way.' Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy academic study of, 298; admiration of Communist China in, 193-94, 224-25; anti-Semitism in, 227-28; arsenal of, 268; democratic ideals of, 226-27; DH's involvement with, 221-50, 321-24; formation of, 111, 161; hiding of member of, 197, 203; killing fields of, 386; media cov erage of, 102, 161-64, 165; militarism of and violence advocated by, 158, 162,169-70,221-22,234,240, 245-46,298,387,419,421-22; mythology of, 402-3; New Left sup port for, 111, 221, 269, 297-98, 386; rally in Berkeley held by, 158; school sponsored by, 226, 229, 231-33, 239, 240-41,244,245-46,248,266-67; Squad members of, 264-65, 294, 297, 323-24; women in, 244-45, 418-21 Black Power, 108, 110, 161, 346 black radicalism, 108, 109, 110-11, 161-64 Inde< - 449 black separatist studies, 408 Blanchard, Doc, 53 Blanshard, Paul, 41 Blaug, Mark, 135 Blauner, Robert, 274, 278, 442 Bliss Theater, 53 bloodbath in Indochina, 302-5 Blumenthal, Sidney, 378-79 Bunnell, Victoria, 274, 277, 278 Boodberg, Peter, 100 Book Notes (television show), 381-82 Book of Daniel, The (Doctorow), 58, 305 Borchardt, Georges, 212, 284 Boston Red Sox, 57 Boudin, Kathy, 334, 385 Boulanger, Nadia, 76 Boy with Green Hair, The (film), 59 Bradley Foundation, 404, 407 Branca, Ralph, 58 Brando, Marlon, 53, 108 Braunstein, Chaim (maternal great grandfather), 12 Breakfast of Champions (Vonnegut), 189 Breaking Ranks (Podhoretz), 379 Brezhnev, Leonid, 277 Briar Patch, The (Kempton), 230 Brook, Peter, 136 Brooks, Edward, 310, 314 Browder, Earl, 56 Brown, Claude, 418 Brown, Elaine: autobiography of, 268, 418-21; in charge of Black Panther Parry, 243-45, 246, 264, 268, 269, 323; DH's acquaintance with, 241-42; DH's fear of reprisals from, 315, 361, 386; disappearance of, 296; as fundraiser for Oakland Community Learning Center, 267; implicated in murder of Betty Van Patter, 247, 248, 2 4 9, 264,294-95,323,361,421-22; on Oakland City Council, 246, 250, 293-94; as 'preacher' at Son of Man Temple, 240; reaction to death of Newton, 401; as speaker at Malcolm X Day celebration, 241; volatile person ality of, 230, 243, 245, 249, 422 Brown, Harold, 76-77, 136 Brown, Jerry, 294 Brown, Nancy (Clemens), 77 Brown, Oscar, Jr., 232, 266 Brown, Rose Abramowitz (maternal grandmother), 13-14, 136 Brown (Braunstein), Sam (maternal grandfather), 12-13, 54, 136 Broyard, Anatole, 88 Broyles, William, 325 BubeS Martin, 101, 121, 127, 135, 170, 414 Buckley, Christopher, 393 Buckley, William F, Jr., 376, 392, 393-94,395,429 Buffet, Warren, 230 Bukharin, N. 1., Radical Son: A Journet Through Our Times See also Rackley, Alex New Left: anti-anti-Communism of, 106; Index • 461 antielitism o£, 187; in Berkeley, 120; demise of 196; formation of, 86; he roes of, 109, 114, 134, 143, 361; influ ence on DH, 125, 358-59; and John E Kennedy, 102-3, 104, 108, 349; mis interpreted by Todd Gitlin, 104, 221, 321, 381; politics of, 104-7, 111, 115, 160; and Students for a Democratic So ciety 177; support for Black Panthers, 111, 221, 269, 297-98, 386; support for Cuban Revolution, 102, 109-10, 114, 194-95; support for Malcolm X in, 162, 167, 233, 403; support for So viet Union in, 113 New Left Notes, 107 New Left Review, 134, 135, 142, 150, 176 New Reasoner, 134 New Republic, 380, 384-87, 409 New Right, 393 Newsreel (radical collective), 186, 404 Newsweek magazine, 343 New Times magazine, 296 Newton, Huey P: as advocate of violence, 162, 169; on cover of Ramparts, 180; criminal activities of, 158, 161, 162-64,221,224,242-43,255, 257-59, 265, 266, 268-69, 387; in Cuba, 243, 295; DH's fear of reprisals from, 321-22, 361, 386; drug habit of, 235, 265, 296; education of, 322; as enemy of Eldridge Cleaver, 223, 230, 234, 237, 255; and expulsion of Bobby Seale, 242; flight to avoid pros ecution of 221; as hero of Red Family, 196; implicated in murder of Betty Van Patter, 323-24, 361, 362; influence on DH, 158, 223-25, 226, 228-29, 233-35; interview by Angela Davis of, 189; as leader of Black Panther Party, 111,161,162-64,233-35,241; mainstream acceptance of, 230-31; murder of, 401; power base of, 257-58, 264-65, 267; prosecution of, 295-96, 297, 322; release from jail, 223, 309; as speaker at George Jack son's funeral, 207 Newton, Melvin, 267 New University Thought magazine, 111 New West magazine, 318, 319, 325 New York Dodgers, 58 New Yorker magazine, 298 New York post, 207 New York Review of Books, 385 New York Teachers Union, 18, 56, 67 New York Times, 49, 59, 61, 82-83, 127, 201,260,302,420-21 New York Times Book Review, 285, 442 New York Times Sunday Magazine, 162 New York Yankees, 57, 58 Nicaragua: civil war in, 349-51, 357, 358, 391; DH's trip to, 373-75 Niccamen, Julie, 194 Nicholson, Jack, 223, 233 nihilism, 274, 336, 380, 385 Nixon, Richard M., 102, 166, 190, 195, 197, 198, 303 'Nixon's Vietnam Strategy' (Horowitz), 198 Nkmmah, Kwame, 129, 131 Noah's Ark (corporation), 188 Nobody Listened (film), 404 No More Fun and Games (magazine), 213 Non Jewish Jew, The (Deutscher), 227 Norman, Pat, 340, 343 North, Oliver, 395 North American Congress on Latin America (NACLA), 194-95 North Atlantic Treaty Organization (NATO), 55 North Vietnam, 146, 147, 149, 160, 196-98,200,201,303-4,376 Ncwosti Press Agency, 139-40 Nunn, Wally, 394, 404, 410, 428 Oakeshott, Michael, 406 Oakland Community Learning Center: control of, 244, 245-46, 248, 296; DH's involvement at, 226, 248, 294; fundraising for, 229, 231-33, 239, 266-67, 294, 322; involvement of black professionals at, 232-33; secular church at, 240-41 462 • Ind~ Oakland Economic Development Coun cil, 294 O'Brien, Pat, 59 O'Casey Sean, 440 Odinga, Oginga, 131 Oglesby, Carl, 160, 189 Oistrakh, David, 81 O'Keefe, Michael, 249 Olha, Miss (kindergarten teacher), 47 Olin Foundation, 404, 407 Olympic Games (1968), 277 On People's War (Lin Piao), 196 Operation Abolition (film), 107-8, 114 Ordeal of Civility, The (Cuddihy), 274-75 O'Reilly, Kenneth, 298 Origins of Private Property, the Family and the State (Engels), 78 O'Rourke, P J, 377 Orwell, George, 407 Ozzie fr Harriet (radio program), 53 Pacem in Terris III (conference), 201-2 pacifism, 62 paleoconservatism, 395 Pantheon, 421 Parker, Richard, 237-38 Parkinson, Thomas, 114 Parks, Rosa, 108 Parliamentary Socialism (Miliband), 134 participatory democracy, 105, 106 'Passion of the Jews, The' (Horowitz), 276 Pasternak, Boris, 100 Pasternak, Carol, 81, 146, 259, 260-63, 380,381 Pasternak, Morris, 81 Pastor, Robert, 350 Paths in Utopia (Buber), 113, 121 Patron Saint of the Right Qudis), 393 Paul (saint), 19 'PC Frame-Up, The' (conference, 1991), 408 Peace and Freedom Party 178 Pearson, Hugh, 442 Peck, Sid, 167 Peck, Winslow, 198-201 Pell, Claiborne, 312 Pell, Eve, 312-13, 318-21 Pentagon Papers, 200 People's Park (Berkeley), 182-83 Peretz, Marty, 377-78, 380 Perkins, Dacron, 245, 249, 264 Pedura (Russian hetman), 9 Phillips, William, 377 Picasso, Pablo, 130 Pinell, Yogi, 314 Planned Parenthood, 69, 213-14 Plato, 171 Platonic ideal, 87, 88 Playboy magazine, 410 Playhouse West (North Hollywood), 428-29 Pleasure of His Company, The (Fay), 330 Pledge of Allegiance, 47 Podhoretz, Norman, 377, 379, 393, 395, 396 Point of Order (film), 336 Poland, socialism in, 388-91 polio epidemic, 52-53 political correctness, 408 Political Messianism (Talmon), 272 Popular Front, 29, 55-56 Porgy and Bess, 323 Port Huron Statement, 105, 106, 124 Powers, Ann, 36 Pravda, 143 Preface to a Contribution to the Critique of Capital, 78 Prensa, La, 375 Prison Law Collective, 309, 312 Prison Law Project, 309, 311, 313 'Professor Griff' 402 Progressive Labor Party, 177 progressive Left: anti-Communism of, 63; heroes of, 42, 44; influence on DH and his parents, 43-44, 59-60, 67-68, 75, 87; and Marxism, 44; po litical views of, 40, 88, 89,396-97, 400; support for Communist China, 36, 49; support for Soviet Union, 41 Ind« • 463 Progressive Patty, 56, 59, 103 Public Enemy, 403 Public School 150 (Queens, New York), 49 'Question About Meaning, The' (Horowitz), 112, 117, 119 racial injustice, 54-55, 108 Racial Matters: The FBI's Secret File on Black America (O'Reilly), 298 racial tolerance, 47 racism, 278 Rackley, Alex, 241, 377, 385, 387, 402, 403 Radical Chic (Wolfe), 230 radical feminism, 408 radical prison movement, 309 'Radical's Disenchantment, A' ('Left Il lusions') (Horowitz), 305-7 Radosh, Alice, 146 Radosh, Laura, 146 Radosh, Ron, 146, 301-2, 377, 388 Rafelson, Bob, 231, 308-9 Ramparts Books, 158, 188 Ramparts magazine: Cleaver's articles in, 164, 168, 169; Collier as editor of, 164,173-74,181, 182, 183-84, 185-86, 187, 200, 215; criticism of, 194-95; demise of, 180, 183-84, 237-38; DH as editor at, 153, 158-65,168-69,179-80,185-87, 191, 193, 215, 236-37, 300; DH's ar ticles in, 177, 193, 198, 276; forma tion of, 102, 159; funding of, 159, 179,180-81,187-88,222-23,230, 244; My Lai massacre cover of, 189; Newton on cover of 180; proposed re vival of, 405; Russell on cover o f 150; Scheer as editor of, 102, 154, 159, 164-65,168,169,173,174-75,179, 180,181-82,183,184-85,223;sup port of Black Panther Party by, 161, 163-64, 223; violation of Espionage Act of 1918 by, 198-201 Randolph, A. Philip, 63 Ransom, Harry Howe, 125, 126 Ray, Michelle, 174 Reagan, Ronald: DH's support of, 351, 356, 357, 359, 411; as govemor of California, 182; as hero of Cold War riors, 410-11; opposition to, 349; pol icy on AIDS epidemic, 337, 346, 348; political views of 429 Red Family, 195-96 Redgrave, Vanessa, 174 Red Scare, 65-68 Red Star Over China, 36 Refuse and Resist, 403 'Requiem for a Radical' (Collier and Horowitz), 317-18 Reunion (Hayden), 106 Reuther, Walter, 63 Revolutionary Communist Party, 194 Revolutionary Suicide (Newton), 230 Revolutionary Youth Movement, 165 Rexroth, Kenneth, 115 Ridgeway James, 189 Rieff, David, 382-83 Riles, Wilson, 322 Riverside Church (New York city), 194 'Road to Nowhere, The' (Horowitz), 398-99 Roberts, Holland, 29, 43, 125 Robeson,Paul, 53-54,55,64,65,72, 73-74 Robinson, Jackie, 58 Robinson, Joan, 135 Robinson, Sugar Ray, 55 Robinson, Tyrone, 401 Robison, Lucy, 77, 85 Rockefeller, Abby: affair with DH, 281-83; as feminist, 213; interviews with, 238-39, 240, 281-83; support for Ramparts from, 211 Rockefeller, John D., Jr., 238 Rockefeller, Marion, 211, 212, 231 Rockefeller, Steven, 238, 299 Rockefeller Foundation, 211, 238, 408 464 - Indee Rockefellers, The (Collier and Horowitz), 211-12,238,246,259,281-83, 284-85,316,353,380 Rogers, Deborah, 134, 147 Rolling Stone magazine, 269, 333 Rolling Stones, 189 Roman Catholic Church, corruption of, 41 Roosevelt, Eleanor, 38 Roosevelt, Franklin D., 55, 56 Root and Branch (journal), 102, 109-12, 126-27 'Roots of Alienation, The' (Horowitz), 113,127 Rorty, Richard, 405 Rosenberg,Ethel,58,77-80,271,300, 301-2 Rosenberg, Julius, 58, 77-80, 271, 300, 301-2 Rosenberg, Sophie, 78 Rosenberg Defense Committee, 301 Rosenberg File, The (Radosh and Milton), 301 Roth, Philip, 212 Rubin, Jerry: appearance before House Un-American Activities Committee, 105; book excerpt published in Ram parts, 189; and Chicago Conspiracy Trial, 166, 167, 269; as vice-presiden tial candidate, 178 Rudd, Mark, 334, 381 Rush, Bobby, 232 Russell, Bertrand: autobiography of~ 147; on cover of Ramparts, 150; influence of Schoenman on, 140-41, 153; moral ism of, 129-30; as outliving himself, 149; Peace Foundation of, 127, 130-33,146-51;in proposed 'Fifth International,' 152; speeches by, 132; support of Huey Newton by, 163 Russia in Transition (Demscher), 134 Russian Revolution, 20, 55, 143 Ryan, George S., 25 Sacco, Nicola, 43 Safire, William, 395 Said, Edward, 407, 408 Saigon Students Association, 376 Sakharov, Andrei, 277 Sandped, Ira, 132 San Francisco Chronicle, 310, 320 San Francisco Focus, 394 'San Quentin Six,' 314 Santa Cruz murders, 386 Sartre, Jean-Paul: on biography, 144; on criminals as 'primitive rebels,' 221-22; as hero of the New Left, 135, 150, 385; interview in Ramparts, 189; support of Huey Newton by, 163; on War Crimes Tribunal, 148, 149 Savio, Mario, 113, 115 Scaife Foundation, 404 Schechner, Bill, 245 Schechner, Danny, 158 Scheer, Bob: as editor of Ramparts, 102, 154,159,164-65,168,169,173, 174-75,179,180,181-82,183, 184-85, 223; influence on Huey New ton, 161; as member of liberal estab lishment, 409-10; as member of Red Family, 195-96; political and family background of, 103, 176; as writer for Ramparts, 151-52; as writer for Root and Branch, 111, 117,127 Scheer, Christopher, 196 Scheer, Serena, 174 Schlamme, Martha, 53 Schneider, Bert: funding for Oakland Community Learning Center from, 231; funding of Ramparts by, 223-24; parties hosted by, 233-34; reaction to disappearance of Betty Van Patter, 248, 255-57; support of Huey Newton by, 225,243,265,297,322 Schoenman, Ralph, 128-33, 140-41, 146-53,184-85 Schweitzer, Albert, 131 Schwemer, Michael, 275 Scott, Peter Dale, 189 Scottsboro Boy, 49, 54 Seale, Bobby: at Black Panther rally in Berkeley, 158; and Chicago Conspir Index . Radical Son: A Journet Through Our Times Freeman had served for four years on the board of the China National Offshore Oil Corp, a company owned by the Chinese communist government. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies INDEX A A Kind and Just Parent: The Chil dren of Juvenile Court, 70-71 Abbott, Greg, 268 ABC News, 3, 4, 27, 28, 32, 41, 44, 49, 84, 147 Abramoff, Jack, 12 Acar, Yusuf, 159 Accredo Health Group Inc., 153 Adams, Angela, 56-7 Adams, Dontae, 56-7 Albright, Madeline, 146 Albuquerque journal, 21 Allen, Paul, 113 Allstate Financial, 46 Alston & Bird, 29 Altman, Roger, 181 America's Clean Water Foundation, 33-5 American College of Emergency Physicians (ACEP), 57 American International Group, Inc. (AIG), 6, 7, 33, 167, 179-81, 246, 285-6 American Lawyer, the, 88, 89, 118, 119 American Rights at Work, Amtrak, 74, 98-100, 134 Anderson, Richard, 108 Andrews, Helena, 42 Appelbaum, Binyamin, 51 Aramark, 220 Area Foundation, 238-9 B Bachmann, Michele, 249 Ballotpedia, 244 Baltimore City Paper, 230 Bansal, Sushil, 159 Barr Laboratories, 264-5 Barras,Jonetta Rose, 159-60 Bauder, Donald, 22-3 Bear Steams, 6, 31, 179, 284 Beverly, Louis, 227-8, 230 Biden, Hunter, 11, 77, 80-82, 84-85, 88-89,90-93,99 Biden, Joseph ('Joe'), 5, 10, 11, 18, 49, 73-101, 134, 177, 198, 200, 271 Bingaman, Jesse Francis ('Jeff'), 158 Blackwell Consulting Services, 59, 61-62 Blackwell, Robert, Sr., 59-62 369 Ariel Capital Management, 47 ASK Public Strategies, 56, 72 Association of Community Organiz ers for Reform Now (ACORN), 12, 227-50,292 Atkinson, Caroline, 6, 31 Atlantic Development Group, 150 Austin, Aaron, 21 Axelrod, David, 7, 55-7, 72 Ayers, Bemardine Dohm, 71 Ayers, William, 69-71, 232 Aziz, King Abdullah bin Abudul, 38 370 Index Blagojevich, Rodney ('Rod'), 54, 60,96,98,122,135-136,188, 202-9, 223, 278 Blair, Dennis, 38 Blumenthal, Paul, 192 Boricua College, 150 Boston Globe, 51, 52, 277, 280 Boston Scientific Corporation and Cerner Corporation, 153 Boxer, Barbara, 268, 272 Brand, Stanley, 264 Brooks, David, 1-3, 5 Brosens, Frank, 6, 32 Brown, Gordon, 291 Browner, Carol, 9, 11, 142-7 Bryant, James, 218 BTM Development Partners, 150 Bunning, James, 279 Burger, Anna, 196, 200, 202, 216, 224 Bush, George H. W., 17 Bush, George W., 4, 12, 17, 33, 99, 104, 106, 133, 134, 138, 142, 144, 156, 162, 169, 175, 179, 184, 189, 190, 193, 197, 198, 232, 249, 266, 279,281,285 Byrd, Robert, 141-2 C Cain, Daniel W., 203 Caldera, Louis, 184 Camelot, 42, 45 Campaign for Tobacco-Free Kids, 11 Canney, Ryan, 223-4 Cannon, Jonathan, 6,33-5 Cari, Joseph, 96-8 Carlson, Stephen, 43 Carney, Timothy P., 188, 192-3, 285,292 Carrion, Adolfo, 9-10, 12, 147-52, 286 Carter, James ('Jimmy'), 17, 189 Carter, William ('Billy'), 7 Cato Institute, the, 8 Carron, David, 60-61, 203 Cawley, Charles, 78 CCMP Capital, 153 Celis, Mauricio, 267-8 Cellini, William, Sr., 135-6 Centex S.A., 173 Center for Responsive Politics, the, 83, 89, 168, 284, 286, 292 Cerner Corporation, 153, 155 Chagoury Gilbert, 258-9 Chair, Jonathan, 36 Chevron, 146 Chicago Business, 68 Chicago Daily Law Bulletin, 88 Chicago Magazine, 49 Chicago Reporter, 49 Chicago Sun-Times, 97, 122, 187 Chicago Tribune, 47, 49, 54, 57, 62, 135, 154, 186, 189 China National Offshore Oil Corp, 36 Chinagate, 108-9, 253 Chiquita Brands International, 119 20 Cbooch, 157-8 Chronicle of Philanthropy, 257 Cincinnatus, 2 Citadel Investment Group, 168 Citigroup, 168, 171, 179, 182-3, 185, 189, 282, 284, 285 Citizens Consulting, Inc., 235, 243 Citizens for Responsibility and Ethics in Washington (CREW), 152,192 Citizens Union, 152 Claremont McKenna College, 103 Clay, William, 48 Clinton administration, the, 2, 30, 49, 80, 104, 108, 109, 118, 119, 124, 143, 144, 146, 148, 153, 170, 173, 174, 181, 183, 186, 188, 250, 261,288 Clinton Foundation, the, 257-66 Clinton Global Initiative, 257, 264-5 Clinton, William Jefferson III ('Bill'), 17, 20, 21, 81, 96,104, 108, 124, 163, 173, 188, 189, 222, 250-275,287,288 Clinton, Chelsea, 64, 254 Index 371 Clinton, Hillary, 7, 18, 20, 45, 64, 67,148,163,197,249-275,277, 285,287 CNN, 17, 27, 28 Cochran,John, 78-9 Cohen, H. Rodgin, 6, 31-2 Cohn,Jonathan, 156 Commission for a Sustainable World Society, 143 Commodity Futures Trading Com mission, 174,190 Commonwealth Edison, 8, 72 Communities Voting Together (CVT), 238, 239,242 Congel, Robert, 265-6 Congressional Quarterly, 185 Consolidated Securities Entities pro gram, 31 Consumers Organized for Reliable Electricity (CORE), 72 Consumers Rights League, 238, 242 Conyers, John, 247 Coren,Jonathan, 149-50 Corn, David, 123 Corr, William, 11 Council on Foreign Relations, 175 Countrywide Financial, 163-5, 278 83,285,287 Covington & Burling, 10, 118-22 Craig, Greg, 207-8 Crow, Sheryl, 254 C-SPAN, 181 Cucullu, Lt. Col. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies 66, r9o, 195 ,2 5 8 296 Center on Addiction and Substance Abuse (CASA), 255 - 57 CEOs, zeds, cm, 105, u2-16,130,133, 253 Cera, Michael, 189 cereals, xxxii Cheerios, xxxii Cheetos,33-34 Chernin, Peter, xxi, 193 Chevrolet, xxxii, 14, 208 Chili's, 28 China, 108 Chocolate Rain, 201 choices, 45, 48, 59, 68-69 seniors and, 239, 245 Chrysler, 51, 5m, 131 Citibank, 133 Classmates.com, What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears Twenty-two blacks were killed by white supremacists in North Car olina during the Wilmington Race Riot of 1898. Racial Paranoia 7 Also in 2004, a white, Catholic visiting professor at Claremont 10 ANN COULTER McKenna College claimed her car had been vandalized with racist and anti-Semitic graffiti, with the words 'Shut Up!' spray-painted on the hood of her car. Guilty: Liberal 'Victims' and their Assault on America Rap Brown) [COP KILLER], Herman Bell [COP KILLER], Anthony Jalil Bottom [COP KILLER], Kathy Boudin [DROVE GETAWAY CAR FOR COP KILLERS], Marilyn Buck [BROKE COP KILLERS OUT OF JAIL], David Gilbert [DROVE GET AWAY CAR FOR COP KILLERS], Mumia Abu Jamal [COP KILLER], Raymond Luc Levasseur [COP KILLER], Sekou Odinga [ATTEMPTED COP KILLING], Anthony Ortiz [LOSER REVOLU TIONARY], Leonard Peltier [COP KILLER], Oscar Lopez Rivera [FALN TERRORIST], Michael Santos [LOSER REVOLUTION ARY], Carlos Alberto Torres [FALN TERRORIST GROUP BOMB MAKER], and the list goes on and on. Guilty: Liberal 'Victims' and their Assault on America I advised Huey and Bobby on strategic planning for this boycott but rather than focus on the real issues at hand the na tional media attention emphasized the fact that the Panthers car ried guns. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me But as I wrote in my diary, which I did for at least ten years, the night we left for our car trip to Southern California, I was determined to make something out of my life so I could rec tify some of the terrible humiliations black people had endured, in cluding my family and me. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me As part of my induction cere mony I wore a colorful traditional kente cloth wrapped around me in a graceful drape and was then hoisted onto a throne that was car ried through the village. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me When the disaster came, people who had cash in the bank and a car in the garage escaped, and those who did not were shamefully left to fend for themselves. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me The President sat low among the cushions of his car. 1920: The Year of the Six Presidents His car rolled through the iron gate, and the people drew deep breaths of pained astonishment when it had passed. 1920: The Year of the Six Presidents Under Greenspan the markets tended to obsess around the latest hot indicator-purchasing managers indexes, the 'P star' inflation pre dictor (a model linking prices to money growth), freight car loadings (a supposed early indicator of shifts in economic activity), measures of home equity extraction, and so forth. Ben Bernanke's Fed: The Federal Reserve After Greenspan Ma'an was later killed in a car accident that occurred when the army was moving him from detention in Qedumim to a deten tion site inside Israel [in violation of the Geneva Convention]. Palestine Inside Out: An Everyday Occupation But the second that I opened the door, the soldier aimed his weapon at me and ordered me to stay inside the car. Palestine Inside Out: An Everyday Occupation I shouted at him in Arabic that the passenger is in a very serious condition and is liable to die, but he motioned to me to stay in the car. Palestine Inside Out: An Everyday Occupation Seeing the VIP car the embassy had arranged to take her to Amman, where she would fly on to Ireland, she had a flashback. Palestine Inside Out: An Everyday Occupation 220 Palestine Inside Out didn't have much time to ponder the point: soon enough a yellow-plated white car came screaming down the road toward us, going at least 60 or 70 mph down a very narrow street. Palestine Inside Out: An Everyday Occupation Abu Karim quickly pulled me to the side of the road as the car blazed past. Palestine Inside Out: An Everyday Occupation When a steel curtain rod fell aboard their private railroad car and cut his fore head deeply while his father was in another compartment eating break fast, young Franklin made his terrified mother promise not to, tell James. The Defining Moment: FDR's Hundred Days and the Triumph of Hope 172 JONATHAN ALTER from Roosevelt himself, who the next day invited reporters into his pri vate railroad car en route to New York. The Defining Moment: FDR's Hundred Days and the Triumph of Hope the chauffeur started the car. The Defining Moment: FDR's Hundred Days and the Triumph of Hope The seventy-two-year-old Walsh was found on the floor of a Pullman car while returning on the Florida Limited from his honeymoon with his wife of one week, the beautiful young widow of a rich Cuban banker. The Defining Moment: FDR's Hundred Days and the Triumph of Hope on Sunday, March g, as FDR had his car driven up an the grass, more than a dozen representatives of the financial elite of the United States assembled in the main board- 228 ONATHAN ALTER THE HUNDRED DAYS 229 room of the Treasury Building, across East Executive Avenue from the White House. The Defining Moment: FDR's Hundred Days and the Triumph of Hope The place had that alluring quality that inspired people to give up their cars for someone more needy than themselves, lay aside their careers for the good of the vision of the church, and in one case, bake a chocolate cake for the neighbors who were vandalizing their car. Quitting Church: Why the Faithful are Fleeing and What to Do about It But nothing was complete when Truman had to leave for the Hill and, alternate language in hand, Clifford ran to catch his car. White House Ghosts: Presidents and Their Speechwriters WHITE HOUSE GHOSTS On the car ride down Pennsylvania Avenue to the Capitol to deliver the speech, LBJ turned to Kennedy aides Larry O'Brien and Pierre Salinger, who were in the car along with Sorensen. White House Ghosts: Presidents and Their Speechwriters Passing the Pentagon, he could smell the building burn through his open car window. White House Ghosts: Presidents and Their Speechwriters We stopped the car so I could take a better look. Lenin, Stalin, and Hitler: The Age of Social Catastrophe He also insisted on getting the same railway car and signing the documents in the same place where the Germans had been forced to sign an armistice in 1918. Lenin, Stalin, and Hitler: The Age of Social Catastrophe I.ulcr Illat ,car, un \iglr.o) War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism She grabbed at Lynn's arm as Lynn was getting out of the car. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... Car and suicide bombings, which stoked sectarian violence, have fallen from a total of 130 in March 2007 to fewer than 40 last month. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... High-priced American and European designer clothing shops and jewelry stores and car dealers are everywhere. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... It makes immediate assessments of people and en vironments and dictates a course of action: Don't get in that car. In the Event of My Untimely Demise That was left to Maggie, who cavalierly harvested my innocence on a frozen car seat and introduced me to the exciting world of the promiscuous, risk-taking female. In the Event of My Untimely Demise We were summoned home immediately and en dured one of the most uncomfortablysilent car rides home in history, interrupted by a grueling flat tire, just to add mis ery to misery. In the Event of My Untimely Demise We are so eager to be hardworking, law-abiding citizens that we left our workplaces and came by car, bus, and trolley to the center of a city that we now demand reflect its name, City of Brotherly Love. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country We hustled back to the car and were on our way. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country And Iowa was also rapidly becoming an insurance state-there would soon be almost as many THE TERMS OF TRADE 187 insurance companies in Des Moines as in Hartford-and the white-collar workers there tended to like free trade in the abstract and in the reality of, say, a Japanese car. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country pistol away from Freddie and were driving him away in their car. The Pursuit of Happyness So as Moms, Sharon, and Kim followed Freddie out to his car, I just called after them, 'Merry Christmas! Y'all go ahead, to the party, I'm going to the movies with Belinda, so maybe I'll stop by later.' The Pursuit of Happyness How can it be any different from everything I've ever done before? From working at Heartside Nursing Home and the Navy Hospital at Camp Lejeune in general surgery and the proctology clinic, to heading up a laboratory at the x96 Chris Gardner drive all around, up and down highways, to find obscure facilities and labs, carrying a small warehouse in the trunk of his car, he gets to go to one office, sits there, and talks on the phone. The Pursuit of Happyness So I tell the truth, mi nus the part about going to jail, but including pretty much every thing that's happened recently: Jackie emptying the house, taking everything, including my car, and especially how she has any son and I don't know where either of them are. The Pursuit of Happyness A nephew of Fidel Castro and a faithful devotee of the cologne-soaked car-salesman look popular among some south ern congressmen, Diaz-Balart is one of the House's all-time blowhards, a guy who before the Republicans took control of the House made a career blasting the Democrats for not allow- ing open-rule bills to reach the House floor. The Great Derangement: A Terrifying True Story of War, Politics, and Religion I sighed and pulled myself out of my car. The Great Derangement: A Terrifying True Story of War, Politics, and Religion Since I was going to be in the car, I had to do the drill, too-so I practiced pushing her limp body out of the way, reaching over the seat, and grabbing the e-brake. The Great Derangement: A Terrifying True Story of War, Politics, and Religion Failure to pay can mean a visit to the trunk of a car or the bottom of Lake 55 Pay to Play Michigan.) Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow Armed with such Afghan-jihad-type weapons as AK-47s, heavy machine guns, and RPGs (this seems to be another set of potential U.S. enemies who are not abiding by the rules of the Revolution in Military Affairs) and conducting kidnap pings for ransom, attacks on energy infrastructure, ambushes, and a few car bombings, MEND has proven itself able to severely disrupt oil production and export. Marching Toward Hell: America and Islam After Iraq Someone who buys extensive liability insurance for his car may drive too fast because he feels financially protected .3 Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy See also Credit default swaps (CDSs) Defense Plant Corporation (DPC), 29 Deficits, 65, 210 Deficit spending, 94, 102 Deflation, 96-97, 180, 235 Dell, 83, 196 Democratic Party ideology, 175-183, 260 Depository banks, business model, 136-137 Depreciation, 14 Depression, see Great Depression influential factors, 17-18 recovery from, 18 Deregulation, radical, 133-148, 195, 236, 247,251 Derivatives: characteristics of, 49, 54, 114-115, 192, 197, 204, 206, 214, 236, 264, 279, 288 debacle, 65 explosion, 90 market, 73, 128 regulation of, 135 Lading, 154 types of, 109-110 unregulated, 32 value of, 138 Destabilization, financial, 65 Deutsche Bank AG, 244, 280-281 Digital Millennium Copyright Act, 244 Dimon, Jamie, 201, 219 Disclosure requirements, 125, 237, 254 Dollar-gold relationship, 36 Donaldson, Lufkin & Jenrette (DLJ), 241 Donaldson, William, 241 Dot-com(s): booms, 87 bubble, 185 'stock option penis envy,' 196-201 stocks, 25 320 INDEX Dow Jones Industrial Average, 25, 54-55, 59-62,64,68-70,76,204,220,242, 249 Downey Savings, 239 Drexel Burnham Lambert, 204 Due diligence, 247 Dutch tulip craze, 65, 228 Earnings manipulation, 103 Easterling, Ed, 289 'Eat what you kill' system, 136 Economic catastrophe, 47 Economic contraction, 34 Economic distress, 24-25 Economic downturns, 25-26 Economic expansion, 32, 62, 64, 80, 95, 134 Economic expediency, 5 Economic numbers, 12 Economic slowdowns, 59-60 Efficient markets, 4, 134, 142 Einhorn, David, 190 Eisinger, Jesse, 111-112 Electric car manufacturers, 23 Electronics industry, 10, 23 EMC Corporation, 83, 196 Emergency Economic Stabilization Act, 32. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The trip was interrupted twice: once by design, with a visit to the Rumsfelds in suburban Chicago; and again by car trouble in the middle of a massive blizzard that buried the upper Midwest 140 in several feet of snow. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Leaving his wife and children at a Holiday Inn, Cheney pressed on in the car with his father. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Liz Cheney, having heard about the first plane hitting the 33 2 North Tower on her car radio, called her father on his private line. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President But if he's known for anything in the United States, it's that two years before, in London, he was the main character in a bizarre incident that got international atten tion: he's the rich guy whose wife was targeted by kidnappers who instead snatched and then murdered the wife of one of his execu tives who'd had the misfortune of borrowing the Murdoch family car (a Rolls-Royce, which added nicely to the story). The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 23-30,49, 139, 165; shareholder premium issue, 379, 387; Tinn• cover story and, 290; vote on Murdoch offer, 194-95; younger generation and Dow Jones, 85-86 Band, Doug, 391 Bandleq James, 221 Barbarians at the Gate (Burrough), 172 Barren, Clarence, 24, 86 Barren, Jessie Waldron, 24,86 Bartholomew, Harry Guy, 131-32 Bartley, Robert, 261 BBC, 122,252 Beattie, Dick, 166, 229, 291 Beattie, W Geoffrey, 286 Beaverbrook, Lord, 71-72, 76, 131, 226, 249 Berlusconi, Silvio, 331 Bewkers, Jeffrey, 43 Bing, Steve, 391 Bingham family, 93, 301 Black, Conrad, 122, 235, 237, 247-48, 374 Blair, Jayson, 343 Blair, Tony, 276, 280-81, 372-73, 395, 396-97 Bloomberg, Michael, 28,193, 315, 390 Bloomberg LP, 26-27, 28,193 -94, 315, 399 Bluhdorn, Charles, 179 Boesky,Ivan,179 Bone, 335, 395 Booker, Patricia, 32, 76, 95, 96 Boston Globe, 209 Boston Herald, 177, 189, 209 Branson,Richard, 310,374-75 Brauchli, Marcus, 6, 9, 90 Brandy, Susan, 154 Brearley School, 98, 150, 207, 33637 Breindel, Eric, 276-77 Briganti, Irons, 346 Brin, Sergey, 336 British Satellite Broadcasting, 310 Brown, Tina, 8, 233, 234 BSkyB (British Sky Broadcasting), 2, 3, 50, 99, 100, 103, 147, 193, 248, 294, 361, 368, 369, 373, 374, 375, 376; Sky News, 284; Sky Television, 309-10; soccer broadcasts, 305 BT (British Telecom), 312 Buffalo Courier-Express, 209 Buffett, Warren, 195, 255-56 Bull, Bartle, 155 Bulletin, 365-66 Burden, Amanda, 155 Burden, Carter, 155, 156, 157, 158 Buckle, Ron, 198-99, 256, 257, 258, 391 Burmugh,Bryan, 172 Bush, George H. W, 261, 279 Bush, George W, 38, 39 Cablevision, 401 Cameron, David, 396 Cameron, James, 299 Cammaker, Josh, 223-24, 227, 228, 290 Campbell, Alastair, 280-81, 372-73 Campbell, Lewis, 381, 382, 384 Car & Driver, 183 Carey, Hugh, 269 Carr, Clive, 125 Carr, David, 9 Carr, Sir William, 123-25 Carr family, 123-25 Carter, Jimmy, 94,340 CBS, 22, 71, 155, 184, 220, 305, 307 INDEX 1 437 Centerview Partners, 166 Chambers, Anne Cox, 94 Champion International Corporation, 182 Chandler family, 93 Chapple, Frank, 274 Charles, Prince of Wales, 68 Charlie Rose (TV show), 107, 108-9 Chase Manhattan Bank, 36 Chelberg, Lizzie Goth. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 110-13, 116-17, 138,166,252,381 Lewis, Brian, 346-47 Lewis, Ross, 29 Lindner, Carol, 179 Links Club, New York City, 111, 114,116 44 0 I INDEX Lippman, John, 317-18, 319 Lipton, Martin, 159,166,179,251-54,290, 291 Lloyd George, David, 66 London Weekend Television, 127,150 Long, Gerald, 241 Longer, Claudine, 275 Lord, Day, and Lord, 146 Los -4ngeles Herald Examiner, 178 Los,4ngeles Times, 93, 342 Louisville Times, 93 Luce, Henry, 169 Luntz, Frank, 280 MacElree, Jane Cox Hill, 27, 79, 89, 90, 385 MacLeod, Alasdair (son-in-law), 95, 96, 294, 327, 357, 359 MacLeod, Clementine (granddaughter), 373 MacLeod, James (grandson), 358 Maeder, Freddie, 95,96 Major, John, 279 Malone, John, 38-39, 45, 120, 306-7, 311, 314 Mann, William, 104 Market for Glory, The (Jenkins), 249 Maxwell, Robert, 122, 124, 125, 130, 176, 179,235,237 McClintick, David, 177 MCI, 311, 312, 330 McKay, Mick, 135 McKay, Muriel, 135-36 McPherson, Peter, 79,138,142,144-45,229, 253,381,382 Menzies, Robert, 264-65 Merrill Lynch, 91, 137, 164, 166, 222, 227, 229, 285, 286, 291, 381, 384, 399 Metromedia, 39, 187 Meyer, C. E, Jr., 179 Meyer, Eugene, 149 Microsoft, 255,400 Milbank, Tweed, Hadley, and McCloy, 146 Milken, Michael, 111, 145, 172, 179, 237, 277, 279, 307, 311, 331 Miller, Judy, 343 Miller, Roy 'Rocky,' 213 Mirror Group, 235 Mirror (Lundon), 66-67, 123, 126, 131, 132-33 Mirror (Sydney), 74,102 Modern Bride, 183 Moore, John, 340 Morgan, Jacqueline Events Bancroft Spencer, 79 Morgan, Piers, 237, 250-51 Morgan Stanley, 285,379 MSNBC, 162,247 Murdoch, Aiden (grandson), 102 Murdoch, Anna (second wife), 12, 32, 32-33, 36, 94, 95, 97, 101, 128, t29,135-36,187, 272,275,295-98,303,311,352,357-58, 361, 362, 368, 370; car accident in Britain, 136; divorce o£, 10-11, 32-33,35, 60, 97, 326, 327-28; forced off News Corp. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Commenting on the study, Ron Pollock of Families USA said, 'It's 75 76 IMPOSTOR the functional equivalent of going to a used car salesman and being told you're getting a great deal because you got a $3,000 discount. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy Only before you came, he raised the price of the car by $4,000.' Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy After the session, we packed ourselves into a car with the editors of the New Left Review and Jean-Paul Sartre in the back. Radical Son: A Journet Through Our Times Elaine directed her anger at Charles, whom she accused of taking a Party car and reneging on a loan she had made to him. Radical Son: A Journet Through Our Times For David Horowitz has 360 • Coming Home climbed into the sleeping car. Radical Son: A Journet Through Our Times When my 26 CULTURE OF CORRUPTION accountant realized I would need to file amended returns, he suggested addressing another matter I had raised with him ear lier in the year: whether the use of a car service offered to me by a close friend might be a tax issue. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies And it is no coincidence that the Obamas' water-car riers in Congress are fighting reasonable proposals to keep the First Lady's public policy-related meetings transparent to the pub lic. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies A genera tion ago not only auto companies but drivers as well scoffed at the use PROLOGUE PROLOGUE of seat belts; today the industry sells safety, and just about every driver and most passengers buckle up before the car starts. High Society See also Cable television; Magazines; Network broadcasting; Network television; Radio advertising alcohol andtobacco, 8,148 cigar smoking and, 12 direct-to-consumer, 3 girls, thinness ideal, substance abuse and, 53 teens, alcohol abuse, and, 56-60 teens, tobacco use, and, 60-62 Aerosol cans, inhaling from, 1, 26,176 Afghanistan, 7,172,173 AFL-CIO, 182 African-Americans alcohol industry advertising to children and teens, 58 alcohol merchants and targeting of, 148 cigarette advertising to, 14-15 hiked nicotine content in cigarettes popular with, 62 in prisons, 86 Age groups, drug use and differentials among, 31, 132 Aggravated assaults, substance abuse and, 100 AIDS, xi, xii, 65, 76, 77, 165, 177, 178 alcohol abuse, drug abuse and spread of, 7, 67, 83 in Italy, 131 medical marijuana and, 120 Alaska, alcohol tax rate in, 147 Alaska Supreme Court, 24 Albert, Carl, 23 242 INDEX Alcohol, 122 addiction to Valium and, 23 availability of, via the Internet, 40 curbing availability and attractiveness of, 169-173 dopamine levels in brain and, 35 easy availability of, 39 history behind use of, in America, 16-19 proposal for international agreement on, 171 revenue from federal, state, and local taxes on, 159 taxes on ,18n,127,130 Alcohol abuse, 1, 5, 6, 161 car accidents and, 18, 67 as chronic disease, 177 diseases/conditions attributable to, 187-189 (table) domestic violence and, 105 among girls and women, 135, 136, 139-140 mortality and morbidity toll from, 66 overall direct costs of, 159 teens, advertising and, 56-60 violent crime and, 85 Alcohol addiction cocaine used as treatment for, 20 difficulties in recovering from, 96 Alcohol advertising on cable television, 148 children and teens and, 8 Alcohol-related arrests, on college campuses, 51 Alcohol education courses, 51 Alcoholics number of, in United States, 19 perpetual care and, 165 as polydrug abusers, 35 stigmatization of, 167 Alcoholics Anonymous, 18, 90, 97, 166, 167 Alcohol industry. High Society See African Americans Bloomberg, Michael, 151, 175 Blunt, Abigail, 143 Blunt, Roy, 143 Bodybuilding creams, use of, by athletes, 2 Body sculpting, abuse of anabolic-androgenic steroids for, 27 Boehner,John,143 Bogart, Humphrey, 4, 87 Bollinger, Lee, 185 Bonds, Barry, 55 Bonsack, James, I1 Booze-sicles, 58 Boston Celtics, 26 Boys binge drinking by, 59, 174 smoking and, 137 steroid abuse by, 55 substance abuse and, 136 Brain dopamine levels, drug dependency and, 34 substance abuse and damage to, 137 'Brain steroids,' 51 Bratton, Bill, 89 British American Tobacco, 152 Broadcast networks alcohol advertising and, 148-149 cigarette advertising and, 148, 149 Broken families, substance abuse, addiction and, 103 Bronchitis, 19, 65 Brown and Williamson Tobacco Corporation, 144, 157 Brummer, Bennett, 93 Buckley, William, 132 Budweiser, 57 Buprenorphine, heroin and, 78 Burglaries, substance abuse and, 86 Burke,Jim, 60n,181,182 Bums, Ursula, 185 Bush, Columba, 185 Bush, George W, 1, 24, 144, 145, 150, 162 Bush, Jeb, 72, 107, 155 Bush administration Afghan opium trade and, 172 WHO's Framework Convention on Tobacco Control and, 170 Byers, Brooke, 109 Cable television, alcohol advertising on, 148 Cagney, James, 87 Calabrese, Sal, 42 California alcohol tax rate in, 147 Master Settlement Agreement and, 157,158 recidivism rate in, 97 smoking prevalence rate in, 150 Camel cigarettes, 11, 12, 158 Canada, tobacco industry, taxes, and cross-border smuggling into, 152 Cancer, 65, 66, 76,141, 168,177 Candy-flavored cigarettes, 60-61 Cannabis Dependence, 122, 123 Cannabis withdrawal syndrome, 123 Car crashes, alcohol-related, 18, 67 Carey, Hugh, 19,180 Carson, Johnny, 5 Carter, Jimmy, 13, 24, 127, 179 CASA. High Society See also Alcohol abuse; Cocaine; Heroin; Marijuana; Methamphetamine; Prescription drug abuse; Smoking; Tobacco back-of-the-bus research status on, 76-80 as chronic disease, 165-166 collateral wreckage from, 7, 103-117 on college campuses, 51 conservatives, liberals, and ideological myopia about, 163-164 crime and, 85-101 cycles within, 70 diseases/conditions attributable to, 187-189 (table) as enemy from within, 178 faith community and countering of, 173-174 financial and health costs related to, 6 fractured families and, 105-107 health care spending and, 80-84 HIV epidemic and, 83 homeless population and, 115-116 human misery related to, 5 mortality and morbidity toll from, 65-67 parental conduct and teen's attitude toward, 45-49 physicians and, 73-76 the poor and minorities and, 6 professionalizing providers and, 167-169 protecting our children from, 36, 178 263 as Public Health Enemy Number One, 5 public housing and, 113-114 'rewired' brains of addicts and, 35 in schools, 40-45 shoveling-up practices in America and, 16-117 stigmatization of, 164-167 treatment programs and, 68-73 unisex legacy and, 135-142 welfare and, 111-113 Substance-free dormitories, 51 Sudden infant death syndrome, 68 Suicide alcohol abuse among teens and, 39 binge drinking and, 59 teens, addiction and, 5 Sullivan, Lou, 185 Super Bowl, 57 Surgeon General's Reports on Smoking and Health, 13,14 Sweden, restrictive drug policy in, 131 Sweeney,John, 185 Switzerland, drug decriminalization in, 130 Szelog, Samantha, 42 Tailgate parties, binge drinking and, 50 Taliban, 172 Taverns, as political birthing centers in colonial America, 16 Taxes, 171 alcohol, 18n, 127, 130 cigarette, 127, 130,175 political money and freedom from increases in, 146 prison funding and, 91 on tobacco, Revolutionary War debt and, 10 tobacco industry and impact of, on sales, 149-153 Taxin, Christine, 47 Taxin, Paul, 47 Taylor, Elizabeth, 4 264 INDEX Taylor, Lawrence, 4 Teachers, drug sales in schools and attitudes of, 42, 43 Teen drinking, as precedent for adult alcoholism, 38, 59 Teen pregnancies alcohol abuse and, 39 women on welfare and, 112 Teens alcohol abuse by, 126 alcohol-related advertising and influence on, 56-60 alcohol-related car crashes and, 18 beer drinking by, 19 cigarette advertising directed to, 15 cigarette smoking by, 8, 14, 126 co-occurrence of mental disorders with substance abuse in, 78 in emergency rooms, 75 faith communities and countering substance abuse in, 173 in juvenile justice systems, 87 marijuana use and developing brains of, 123-124 marijuana used by, 119, 122 multidrug episodes and social elements among, 35 parents and prevention of substance abuse in, 176-177 political partnership between alcohol and tobacco industry and,158-160 polydrug abuse and, 32 prescription drug abuse by, 5 prevention focused on, 174-175 tobacco industry, public education programs and, 155-158 tobacco industry advertising tactics and, 60-62 Teen smokers, Clinton administration and decline in, 162 Teen suicide, addiction and, 5 Television, alcohol and drug abuse portrayed on, 54 Television advertising alcohol manufacturers and, 56 ban on cigarette advertising and, 14 Television stars, drug and alcohol abuse and, 2 Temperance movement, 16-17 Terrorism, 172 Tetrahydrocannabinol. High Society If you're younger than thirty, it's a foreign car (though it may have been built in America), and it's most likely a Toyota or a Honda. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears A promise is what used-car salesmen make. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears It's like the classic George Carlin bit about being in your car speeding down the highway. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears The government offered to insure such mortgages so that lenders would accept them, devising the Federal National Mortgage Administration (FNMA) to create a 'secondary market' to purchase mortgages from lenders, turn 129 OBAMA'S CHALLENGE them into government bonds, and replenish the bank's money so that the banker could make more loans. Obama's Challenge One of the many abuses of the 1920s had 137 OBAMA'S CHALLENGE been market manipulation via short selling, known as bear raids. Obama's Challenge But this 'market' was entirely the creation of government policy overriding what private markets would otherwise have done. Obama's Challenge




















209 Index Aaron, Henry, 83, 86-87 Clinton, Bill, 3, 6, 20, 21, 24, 34, 57-59, AFSCME, 150 72, 79, 88, 89,99, 103, 144, 145, 166, Alinsky, Saul, 33 167,176, 182, 183, 190, 193, 194, 198 Allison, Christine, 181 Clinton, Hillary, 7-8, 14, 16, 24, 106, American Enterprise Institute, 83,99 192-194 Apollo Alliance, 164-165 Concord Coalition, 81 Atwater, Lee, 191 Cox, Christopher, 137 Cutler, David, 9 Baker, Dean, 80, 178 Bartlett, Bruce, 180-181 Daschle, Tom, 194 Bantus, Max, 10, 188, Davis-Bacon Act, 149 Bernanke, Ben, 134,135 Dean, Howard, 193 Bernstein,Jared, 10, 83 Debt-deflation, 185-186 Blinder, Alan, 159 Debt, household, 23, 128,185 Blue Dog Caucus, 25, 81, 127, 129, 188, Debt, national, 22, 30, 80 189 Deficit, federal, 18, 25, 27, 29-30, 33, Bogle,John, 141 34, 39, 76-87, 114,125-129,177, Booth, John Wilkes, 63 188-189 Brookings Institution, 25, 81-85 Deficit, trade, 22 Brown, Sherrod, 115 Delay, Tom, 12 Buffett, Warren, 32 Democratic Leadership Council, 88, 113 Burns, James MacGregor, v, 7, 35, 57, 60, Democratic Party, 20-21, 24, 33, 34, 57, 67, 72 , 190, 201 94,107-114,145,187-189,191-193 Bush, George H. W, 76, 114, 180 Demos, 90, 92, 113, 202, 203, 215 Bush, George W, 1, 6, 10, 13, 20, 30, 69, Denmark: labor-market policy, 154-158, 70, 72, 74, 76, 79, 82, 88, 96, 105, 110, 175 114,115, 127, 128, 129, 133, 134, 180, Deposit insurance, 36, 39, 40, 135 184, 188, 189, 190, 196, 199 Depression, Great, 1, 17-18, 20, 21, Butler, Stuart, 81, 82, 83, 86 35-44,55,112,115,124,126,127, 129,175,185-186 Carter, Jimmy, 6, 34, 5557, 72, 87, 99, DeWine, Mike, 115 144, 193, 194, 197 Dionne, E. J. Jr., 102 Carville, James, 110-111 Dirksen, Everett McKinley, 48 Cato Institute, 99 Dollar, US, 18,22-24 Chaney, James, 49 Douthat, Ross, 183-184, 195 Chase, Salmon P., 62 Dowd, Maureen, 15 Cheney, Dick, 70 Dukakis, Michael, 21 Churchill, Winston, 65,67 Citizenship, 195-199 Earned Income Tax Credit, 59, 95 Civilian Conservation Corps, 38 Eastland, James, 48 Civil rights, 8, 33, 45-54,187 Eccles, Martinet, 38 Civil Rights Act of 1964, 46-49 Economic recovery, 2, 15, 21-29, 33, 34, Civil War, 33, 49, 60-64 76,114-120,123,124,127,160,166, Clean Air Act, 162 177-178,182 210 Edwads, John, 7-8, 14 Eisenhower, Dwight, 6, 44, 69, 99 Employment policy, 27-29, 142-159, 182 Energy policy, 6, 14, 24, 26, 27, 31, 55, 56, 92, 117, 118, 121, 123, 127, 159-166,184,186,187 Engle, Clair, 49, 105 Etzioni, Amitai, 180 Fannie Mae, 10, 29, 74, 122, 129, 130, 133, 134, 137 Famon,Jonathan, 79 Federal Reserve, 2, 23, 37, 133-135, 142, 185 Feingold, Ross, 111-112 Financial crisis of 2007-08, 18, 21-24, 31-32,93,114,121-122,125,132 141,185,187 Financial regulation, 21, 31-32, 101, 102,118-119,130,132-141,174,177 Fisher, Irving, 185 Frank, Barney, 102-102 Freddie Mac, 29, 72, 74, 122, 133, 134 From, David, 70 Furman, Jason, 9, 25, 83 Galbraith, James, 10 Galbraith, John Kenneth, 98-99 Galston, William, 82 Gam, Marshall, 198 Garner, John Nance, 40 Geithner,'iimothy, 135 Glass, Carter, 39 Glass-Steagall Act, 39-40, 102 Goldstein, Dana, 193 Goodman, Andrew, 49 Goodwin, Doris Kearns, iii, 2, 3, 15-16, 32, 36, 62, 65, 72,201 Goolsbee, Austan, 9 Gore, AI, 21, 107, 159,165-166 Grasso, Richard, 30 Green, Josh, 194 Greenberg, Stanley, 110-111 Greenspan, Alan, 23, 145 Greenstein, Robert, 83-64, 86-87 Hacker, Jacob, 103, 178 Halleck, Charles, 48 Hamilton Project, 25 INDEX Health policy, 13, 58, 77, 87, 96, 103-5, 166-172,178,187 Heller, Walter, 98-99 Helmsley, Leona, 30 Herbert, Bob, l l Heritage Foundation, 81-86, 99, 154 Herndon Group, 103-105 Herrzberg, Hendrik, 11 Hitler, Adolf, 65-68, 70 Hoffman, Marina, 156 Home Owners Loan Corporation, 130 Hoover, Herbert, 6, 36, 38, 43, 55, 77 Housing crisis, 18, 23, 26, 102, 114, 120, 124-125,128-130,189 Human services, 146-154 Ickes, Harold Jr., 192 Iraq, 10, 11, 18, 19, 27, 29, 69, 70 Johnson, Jim, 15 Johnson, Lyndon Baines, 1, 3, 5, 6, 33, 34, 44-54, 58, 63, 64, 72, 95, 108, 109, 184, 187, 188, 190, 195, 197, 199 Jordan, Hamilton, 55 Kammen, Daniel, 164-165 Kennedy, Edward M., 105 Kennedy, John E, 7, 32, 34, 44-47, 72, 92, 98, 99, 109, 164, 184 Kennedy, Robert E, 45-46 Kerry, John, 21, 109, 176, 191-192 Key, V O. Jr., 71, 190 King, Martin Luther Jr., 47, 49, 182 Klein, Ezra, 193 Knox, Frank, 66-67 Kristol, William, 58 Labor movement, 8, 143-146, 156-158 Lakoff, George, 107,109 Landrieu, Mary, 188 Leuchtenburg, William, 38, 43. Obama's Challenge And world-famous designer Tommy Hilfiger might still be fielding questions about statements he allegedly made over a decade ago that disparaged black consumers by explicitly denying any de sire on his part to cater to the black clothing market. Racial Paranoia 14 Whether they characterize the media's relationship to the power structure as overly cozy or cold, scholars blame much of today's heightened skepticisms on propensities specific to the current state of 174 RACIAL PARANOIA The fast-moving pace of our current news cycle com bines with an insatiable market in sensationalism to dis suade many academics from entering that fray and going too public with their work. Racial Paranoia I hgher-quality outlets are increasing market share, or declining at a less-rapid pace than network television. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 A terrified nation anxiously waited to see if the terrorist attack would cause a stock market crash when the exchanges opened the follow ing Monday. Guilty: Liberal 'Victims' and their Assault on America If short sellers descended on the market after 9/11, that could spark a collapse, destroy ing the American economy, but making the short sellers very rich. Guilty: Liberal 'Victims' and their Assault on America See also spec topic 60 Minutes (CBS), 79-80,134,182,218, 238,253 Slate magazine, 11, 173, 176, 231 smear campaigns, 72, 88, 93-94, 95, 109-10 Smith, Shep, 15, 184 Smith, William Kennedy, 152 Social Security, 197, 256 Society for Worldwide Interbank Financial Telecommunications (Swift), 221, 222 Soros, George, 104, 234, 237-39, 263 South Carolina, 2008 Democratic Debate in, 79 Soviet Union, 122, 124, 214 Speakes, Larry, 126 sports columns, 13-14 Spy magazine, 161 Stahl, Lesley, 122,182 Stan, Kenneth, 51, 83, 127, 185, 244 Steinem, Gloria, 56-57, 228 Stephanopoulos, George, 73, 97, 127-28 stock market, 238-39 Stockman, David, 125, 127 Strickland, Ted, 151 'strong woman syndrome,' 240 Supreme Court, U.S., 59, 60,61-65, 66-67, 77,86,113,187,193,215,219 Suskind, Ron, 130 Swift Boat Veterans for Truth 'Swiftees,' 2, 96,97,98-108,109 'taken out of context,' 87 taxes, 49-50, 51 teenage pregnancy, 37, 38, 39 Tenet, George, 133-34 Tennessee, Republican Party of, 138-39 terrorism, 130-31, 133-34,151, 221-22, 244-45,264 Thomas, Clarence, 192, 243 Thomas, Helen, 127 Thompson, Fred, 84 Thurlow, Larry, 102, 105-6 Thurmond, Strom, 1 Tides Foundation, 92 Time magazine, 42, 56, 58, 114, 184, 230, 249 Times/CBS poll, 212 The Today Show (NBC-TV), 81-82, 101, 117, 134, 147 The Tonight Show with Jay Leno (NBC), 147 Toobin, Jeffrey, 17, 78 Travelgate,83,187,204-5 Tripp, Linda, 242-43 Troopergate, 187 unwed fathers, 61-67 Us Weekly, 70,148 USA Today, 159, 160, 181 Van Susteren, Greta, 15, 184 Vanity Fair magazine, 6, 70, 81, 82-83, 101,117,171,184,233,244,252 Vast Right-Wing Conspiracy, 83 victims: and boasting about victimhood, 31; as hoaxes, 4-!i; as launching policy proposals, 2, 12; media-anointed, 1-2, 12; as oppressors, 1-2, 13; popularity of, 4; real, 2, 12; as successful liberal strategy, 31. Guilty: Liberal 'Victims' and their Assault on America vi CONTENTS PART III BERNANKE'S BELIEFS How Bernanke's Life Work Shapes His Policies 8 Constrained Discretion 95 Bernankes Quest for an Inflation Target 9 Depression Obsession 113 Haw the Great Depression Informs Bernanke's Thinking 10 Glasnost 127 Democracy Comes to the Fed 11 Zen and the Art of Monetary Maintenance 141 The Fed's New Communication Style 12 See No Evil, Hear No Evil, Speak No Evil 147 The Policy Response to an Asset Market Bubble 13 Radical Risk Management 159 A New Policy Focus for the Fed PART IV BERNANKE's BEGINNING The Early Report Card 14 Murphy's Law 167 New Fed Chairmen Always Seem to Face a Tough Environment 15 Pressure Cooker 181 Bernanke's Performance in His First Two Years Conclusion Can He Walk the Walk? 203 The Outlook for the Bernanke Fed Notes 211 Index 229 About the author 237 viii ACKNOWLEDGMENTS This book draws heavily on my research at Lehman Brothers, including e-mail exchanges, hallway debates, our weekly newslet ter, and a long preview of Bernanke titled 'Bernanke: A Guide to the New Fed Chairman,' published in February 2006. Ben Bernanke's Fed: The Federal Reserve After Greenspan Despite his maestro reputation, Greenspan had allowed 4 BEN BERNANKE'S FED IT'S ALL ABOUT THE BENJAMIN 5 the overall economy, the housing market, and the credit markets to run too hot in his final two years as chair. Ben Bernanke's Fed: The Federal Reserve After Greenspan It started in the mortgage market: about a third of mort gage loans that were made in the prior two years were no longer , being made under the new tighter credit standards. Ben Bernanke's Fed: The Federal Reserve After Greenspan The main pol icy-making group is the Federal Open Market Committee (FOMC), which comprises the presidents of the twelve regional Federal Re serve banks and the seven governors (including Bemanke) who re side in Washington, D.C. However, at any given meeting only twelve members vote all seven governors, the president of the Federal Re serve Bank of New York, and four Reserve Bank presidents. Ben Bernanke's Fed: The Federal Reserve After Greenspan The classic example of a supply shock is when disruptions to the oil market drive up the cost of oil. Ben Bernanke's Fed: The Federal Reserve After Greenspan Re porters often referred to Greenspan as a kind of shorthand for the Fed and the nineteen-member Federal Open Market Committee in the public's mind, it was Greenspan who pulled the levers of pol icy and moved the markets with his Delphic views on the economy 64 BERNANKE'S BENCHMARK and the markets. Ben Bernanke's Fed: The Federal Reserve After Greenspan FIGURE 6-4 Crises during Greenspan's tenure 1987 1988-1990 1990 1990-1991 1990-1991 1994 1997 1998 1998 2000 2001 2001 2003 2003-2004 GREENSPAN,AN ENVIABLE RECORD 69 RIDING TO THE RESCUE Stock market crash Savings and loan crisis Stock market mini-crash Gulf War I U.S. recession Mexican peso crisis Asian financial crisis Russian debt crisis Long-Term Capital Management collapse Nasdaq collapse U.S. recession 9/11 terrorist attack Gulf War If Deflation scare 70 BERNANKE'SBENCHMARK Greenspan was even more resolute around the collapse of Long Term Capital Management in 1998. Ben Bernanke's Fed: The Federal Reserve After Greenspan In my writing at the time I referred to the crisis as a financial freeze, as one asset class after an other became highly illiquid, and investors piled into the Treasury market. Ben Bernanke's Fed: The Federal Reserve After Greenspan Fourth, Bernanke's agenda is not all about change: I will look at how Bernanke planned to continue the Greenspan approach to potential asset market bub bles. Ben Bernanke's Fed: The Federal Reserve After Greenspan In the run-up to the FIGURE 10-1 Hawk-dove breakdown ' Pending confirmation ' Retired March 31, 2008 GLASNOST 137 Dove Governors Bernanke Kohn Duke' Hawk , Kroszner Warsh Klane' Mishkin Plosser Locker Fisher Geithner Poole' Vellen Stern Pianalto Rosengren Presidents Hoenig Lockhart Evans 138 BERNANKE'S BELIEFS September 2007 FOMC meeting, several regional presidents had suggested the Fed was torn between cutting rates and staying on hold: Dallas President Fisher: 'We have heard much about financial market turbulence ... Ben Bernanke's Fed: The Federal Reserve After Greenspan Then in late November, first Kohn and then Bernanke 'marked to market' the Fed's view: 'The outlook has ... Ben Bernanke's Fed: The Federal Reserve After Greenspan 145 12
See No Evil, Hear No Evil, Speak No Evil The Policy Response to an Asset Market Bubble

O ne of the most controversial questions in central banking is how policy makers should factor asset markets into their decision making. Ben Bernanke's Fed: The Federal Reserve After Greenspan Often with the benefit of 20-20 hindsight the Fed is accused of moving too slowly in response to changes in the economy-'we knew the housing market was going to collapse, why did the Fed wait for it to happen before cutting?' In reality things are rarely this black and white, so the Fed tends to move slowly, usually raising or lowering interest rates in 25-basis-point moves. Ben Bernanke's Fed: The Federal Reserve After Greenspan Ultimately the market could overshoot and expect too much from the Fed, selling off if the Fed fails to deliver. Ben Bernanke's Fed: The Federal Reserve After Greenspan Greenspan also took over at a challenging time: inflation was creep ing higher, the Fed was gradually providing resistance, and just a few months into the job, Greenspan had to handle the 1987 stock market crash. Ben Bernanke's Fed: The Federal Reserve After Greenspan At the same time the housing market began to unravel; it started with a weaken ing in demand in the first half of 2006, followed by a sharp reces sion in home construction starting in the summer of 2006, and 170 BERNANKE'S BEGINNING finally a drop in home prices beginning in 2007. Ben Bernanke's Fed: The Federal Reserve After Greenspan See Great Depression discount rate, 29 discount window, 179 discretion, monetary policy, 95-97, 100 distribution of income, 41-42 economic forecasting art and science of, 128-132 computer models, 5-6 data trend analysis, 6 by Fed, 6, 102, 106 by Greenspan, 82-85, 131 lack of accuracy in, 183-185 economic growth relationship between price infla tion and, 16-17 unemployment rate and, 16, 17 elections economy and, 39-40 Fed actions during, 76-77 external finance premium, 21 federal funds rate, 33 changes in, 32-33, 160, 175-176, 178,182 as policy tool, 29-30 Taylor role and, 155-156 Federal Open Market Committee (FOMC), 28,42 appointment of, 37-38, 42 Bernanke's leadership of, 132-136 INDEX decision process of, 109-110, 135-136 doves, 74, 136-137 dissenting meetings votes, 74-75, 85, 132-134, 206 forecasts by, 105-106, 107-108 Greenspan's leadership of, 85-87, 132-134 hawks, 74,136-137 transcripts of meetings of, 57-58 Federal Reserve approach to market bubbles, 9, 147-158,207-208 communication by, 9, 51-58, 105-108,141-145,189-194 criticism of, 44-45, 181-183 decision process of, 28-29 economic forecasting by, 6, 102, 106 future outlook for, 203-210 independence of, 12, 38-39, 42-43,49-50,75-77, 195-201 legal structure of, 42 liquid assets of, 178-179 policy setting by, 27-36 policy signaling by, 137-139 political backlash against, 46, 151, 157 political pressures on, 39-50, 195-201 risk management by, 159-164 role of, 11-14 transparency of, 6, 12, 45, 55-58, 141-145 Federal Reserve Act (1913), 28 Federal Reserve Banks, location of, 28-29 Federal Reserve chairman. Ben Bernanke's Fed: The Federal Reserve After Greenspan See asset bubbles Martin, Justin, 56, 63 Martin, William McChesney, 157 McCain, John, 5 McDonough, William, 133 Mellon, Andrew, 117, 158 Meltzer, Alan, 182, 195-196 Meyer, Laurence, 53, 62, 76, 85, 87, 133-134,149 Miller, G. William, 2, 38, 39, 64, 166,201 minimum wage, 20 misery index, 168 Mishkin, Frederic, 22-23, 107-108, 137, 138, 162 Monetary History of the United States (Friedman and Schwartz), 116-117 monetary policy assessing strength of, 30-31 asset bubbles and, 147-158 credit markets and, 21 Fed's approach to setting, 27-36 funds rate and, 29-30, 31 gradualist approach to, 160-161 independence of, from politics, 12 Phillips Curve and, 19-20 risk-management approach to, 161-164 supply shocks and, 34-35 transmission mechanism of, 31 money-supply growth targets, 96-97 moral hazard, 70-71 mortgage crisis, 22-25, 170-171, 176, 177 234 INDEX INDEX 235 NAIRU. Ben Bernanke's Fed: The Federal Reserve After Greenspan See nonaccelerating infla tion rate of unemployment (NAIRU) National Commission on Social Se curity Reform, 61-62 Newman, Frank, 49 'New Paradigm' economy, 64 New Zealand, 98 nonaccelerating inflation rate of un employment (NAIRU), 16-20, 41 Norman, Sir Montague, 52 oil prices, 34, 67, 185-186 Okun's Law, 16 O'Neill, Paul, 77 Open Market Desk, Federal Reserve Bank of New York, 25, 130 opportunistic disinflation, 66-67, 75 optimal long-run inflation rate (OLIR), 102-104, 108 Patman, Wright, 44 Paul, Ron, 45 Paulson, Henry, 166 Phelps, Ned, 18 Phillips, Bill, 17 Phillips Curve, 17-20, 110, 200 policy directives, 56-57 policy rules versus discretion, 95-97 inflation targets, 97-100 money supply growth targets, 96-97 political pressure on the Federal Re serve, 12, 39-50, 75-77, 195-196 populist views of monetary policy, 40-41,197,199 Posen,Adam, 182 potential output growth, 16 presidential elections, economy and, 39-40 Primary Dealer Credit Facility (PDCF), 178 productivity growth, 66 historical averages, 83 of mid-1990s, 82-83, 84, 88 put contracts, 71 Reagan administration, 47 recessions, 2 assault on Fed during, 45-47 balancing risk of, with inflation, 193-194 under Bernanke, 169-171 under gold standard, 101 under Greenspan, 67, 101 Reed, James A., 29 regional reserve bank boards, 37-38 Reinhart, Vincent, 134 Reis, Ricardo, 2 risk management, 159-164, 177-179,207 Roach, Stephen, 189 Roosevelt, Franklin D., 121 Rosenberg, David, 182 Rubin, Robert, 2, 49, 79-80 Russian financial crisis, 70 Schwartz, Anna, 116-117 The Secrets of the Temple (Greider), 27,82 Senior Lending Officer's Survey, 23-24,130 Shiller, Robert, 153, 182 Social Security, 209 stagflation, 169-171 Stern, Gary, 207 Stiglitz, Joseph, 21 stock market boom, 88, 89 stock market crash, 69 subprime mortgage market, 171, 176, 177 Summers, Lawrence, 2 supply shocks, 34-35, 65-66 Survey of Professional Forecasters, 187 synthesis framework. Ben Bernanke's Fed: The Federal Reserve After Greenspan The influx of around a million Jewish and quasi-Jewish immigrants from the former Soviet Union, as well as the increasingly efficient market in migrant labor pro vided by a rapidly globalizing world economy, made Israel's reliance on cheap Palestinian labor less and less necessary. Palestine Inside Out: An Everyday Occupation Qalqilya was the place where the people of the surrounding villages brought their goods to market, and where they in turn did much of their own shopping, or met friends and relatives. Palestine Inside Out: An Everyday Occupation Because Qalqilya also lies at the edge of the 1949 Armistice Line, which from 1967 to 1993 only nominally separated the West Bank from Israel, it used to be possible for Palestinians from neighboring towns inside Israel itself to come to the Qalqilya market and also to meet with friends and relatives once sepa rated by the Armistice Line. Palestine Inside Out: An Everyday Occupation The region was also a natural jumping-off point for Palestinians entering the labor market in the heavily Palestinian north of Israel. Palestine Inside Out: An Everyday Occupation Aaraj, Raliik Ibrahim el-, 25 Abbas, Mahmoud, 81, 87, 263, 265, 272, 276-77 Abdel-Shaft, Haidar, 265 Abdullah, King of Jordan, 249 Abrams, Elliot, 165, 275-76 'absentee landholders,' 9-32, 67, 68, 231-33,257-59 Absentee Property Law (1950), 68, 257 Abu Dis, 71, 76, 87 Abu El Ajeen, 66 Abunimah, Ali, 294 Adalah (Legal Center for Arab Minority Rights in Israel), 283-85 Addameer,79 Adh Dhahiriya, 30, 112 Advisory Opinion of the International Court of Justice (2004), 15, 20, 28, 83-84,119,274,294 African Americans, 290, 291 Agreement on Movement and Access (AMA) (2005), 165-66,275-76 agriculture, 15-32, 33, 44-47, 57, 58-61, 65, 68, 71-72, 87, 104, 110, 113, 123,138-39,136,166,169,194, 195-96,198,199-200,202-3,229, 233, 236, 238, 244, 246, 258 Aharoni, Nati, 180 Ahmed, 260 'Ajjul, 49 AI'Agaba, 105 al-Agsa Hospital, 28 Al-Agsa Mosque, 89 al-Athamah family, 176-77, 266 AI Auja, 55-56 AI Awda Hospital, 156 Alawna, Majdi, 190 AI Badhan checkpoint, 31 AI Baqa', 112 al-Bireh, 1-3, 5, 65 AI Brazil Quarter (Rafah), 67 Alexandroni Brigade, Israeli, 201 Alfe Menashe, 201, 202 Algeria, 292 AI Hadidiya, 105 Alian, Yasser, 34-36 al-Ittihad Hospital, 193 Aliyan, Samira, 95, 97-99, 100 346 't al-Jinan clinic, 42,-43 AI Kasaba, 56-57 At Khadr, 30 Allenby Bridge, 3-4, 115, 154, 155-56 Allen, Yigal, 77-78, 81, 83, 224, 252, 278 Allen Plan (1967), 77-78, 81, 83, 92, 120, 224,278 All that Remains (Khalidi), 223 At Lubban ash Sharqiya, 31, 105 al-Makassed Hospital, 72, 75 Alon, Haggai, 29 al-Quds University, 76 At Ram, 55,71-72 al-Ras, 21 al-Sawahrah al-Shargiyah, 41 al-Watani Hospital, 51-52 al-Zaitun checkpoint, 41-42, 43 Amana, 128 ambulances, 32, 72-76, 183, 192-93 America Israel Public Affairs Committee (AIPAC), 276 Amleh, Amal al-, 3-4 Amnesty International, 6, 8, 109-10, 172-73, 183 Anata checkpoint, 66, 73 An Nabi, 67 Annan, Kofi, 183 Annapolis summit (2007), 64, 277-78, 292 anti-Semitism, 237, 239, 285-87, 290 Aeon, Michel, 269 Arabs, 49 Arab Center for Applied Social Research, 283 Arab el-Swahrah neighborhood (Jerusa lem), 106 Arab Higher Committee, 246 Arabic language, 46, 48, 51, 97, 135, 137-38,180,185,188-90,223,251, 267 Arab-Israeli War (1948), 63, 136, 148, 160,198,201,221-36,243,248-55, 286-87,283,289-90,294 Arab-Israeli War (1967), 10, 16, 18, 64, 131-32,133,161,286,294 Arab League, 176 Arab Legion, 249, 252-53 'Arab Sector,' 229 Arafat, Yasser, 80, 81, 85-86, 87, 88, 130, 265 Index Area A, 83, 85, 117, 119, 211 Area B, 83, 85, 211 Area C, 83, 85, 104, 211 Argentina, 237 Ariel, 31, 34 Ariel, Uri, 147 Ariel, Yisrael, 132-33 Arieh, Shaul, 203 Armistice Line (1949), 16, 198-99, 202, 274,295 Arroub refugee camp, 59-61 artists' colonies, 230-33 Arun, Naseer, 90-91, 223 Ashdod, 166, 169 Ashdod-Ashkelon road, 260 Asira ash Shamaliya, 66 Association for Civil Rights, 84 Association of Forty, 232 Atara checkpoint, 67 Atfaluna Society for Deaf Children, 167 Augusta Victoria Hospital, 72, 73-75 Auschwitz concentration camp, 286 automobile permits, 37-38, 45-47, 63, 191 Avraham Avinu settlement, 141-42, 218 Awarta checkpoint, 47 Awiwi, Nidal al-, 217-IS Ayn Hawd al-Jadida, 230-33 Azun Arms, 15-16, 22-23, 27-28, 65 Bab al-Zawiyah market, 212-14, 216, 220 back-to-back transportation, 53, 58-61, 60 Bahour, Abeer, 2-3, 5-6, 12 Bahour, Sam, 1-3, 11 Balata refugee camp, 177-78 Balfour, Arthur James, 238, 239, 241, 242,290 Balfour Declaration (1917), 238, 290 'bantustans,' 157, 291, 296 Barak, Ehud, 87, 294 Baran, Ze'ev, 106 Barghouti, Mustafa, 260, 265 Bar-Ilan University, 133 Basic Land Law (1960), 257 Basic Laws, Israeli, 148, 263 Baskin, Gershon, 292-93 Basleh, Ismail, 169 Bassam (ambulance driver), 73, 75 Index Beach refugee camp, 160-61 Bedouin, 224, 236, 257 Beersheba, 257 Begin, Menachem, 120,246 Beilin, Yossi, 287-88 Beirut, Lebanon, xiii, 234 Beita, 31 Beit El settlement, 1, 3, 73 Beit Furik, 49, 104 Beit Hadassah, 140-41 Beit Hanina neighborhood (Jerusalem), 106 Beit Hannon, 176-77 Beit Iba checkpoint, 49, 56, 66 Beit Iksa, 65 Beit Jala, 194 Beit fibrin, 135-36 Beit Kahil, 33 Brit Safafa neighborhood (Jerusalem), 106, 118 Beit Sahour, 65, 104, 126, 194 Beit Stra, 33 Beit Ta'amir, 33 Ben-Gurion, Amos, 244 Ben-Gurion, David, 100, 235-36, 243-44, 246,252-53,255 Benvenisti, Meron, 65, 104, 119, 156, 223,252,254,239-60,285 Berlin Wall, 200 Bernadotte, Folke, 255-56 Bethlehem, 5, 33, 56, 65, 71, 76, 104, 126, 127, 194-95,195, 196 Bible, 11, 16, 131-32, 295 Bil'in, 293 Binyamin, Rav, 130 Bit Nabala, 71 Birth of Israel, The (Flapan), 223 Birth of the Palestinian Refugee Problem, The (Morris), 223 Bir Zeit, 67 Birzeit University, 118-19, 197, 282 Blake, William, v, xiv Boim, Ze'ev, 64 Bophuthatswana, 296 Border Police, Israeli, 41-43, 48-50, 56, 5 7 , 67,72-76,97,118,191-92 B'Tselem, 4, 18, 37, 38, 39, 4819, 57, 97, 114, 115, 122, 123, 134, 168, 174, 175, 180-81, 186, 193-94, 212, 216-17,285 347 bulldozers, 24, 66, 67, 90, 107-11, 182-86,233,259 Burke, Edmund, 291 Bush, George W, 90, 91, 165 bypass roads, 12-13, 32, 33-34, 35, 37, 37, 38, 50, 59, 85, 87, 201-2, 212, 229, 232, 337 Campbell, Mrstie, 157 Camp David meeting (2000), 87-89, 92, 278,294 Canaan, 160 Carmel, Moshe, 251-52 Carmeli Brigade, Israeli, 251-52 Carter, Jimmy, 88, 274, 275 Carter Center, 273 Case for Israel, The (Dershowitz), 248 Chagos Islanders, 262 checkpoint 300, 191-92 checkpoints, 3-4, 12, 27, 30-32, 33, 39, 41-63, 42, 44, 45, 46, 53, 60, 66-68, 72-77,85,119,133-60,161,162, 163,166-67,170-71,172,191-95, 205,277 Cheshin, Amir, 103 Chirac, Jacques, 278-79 cholera, 112 Christians, 8-9, 56, 77, 126, 138, 196, 210-11,238,239,269 Church of the Holy Sepulchre, 69 Ciskei, 296 citizenship, 9, 11-12, 17, 77-78, 101-2, 112,116-17,118,143-30,230,238, 239,278,281-84 citrus trees, 25, 66 civilian casualties, 8, 50, 79, 80, 82, 88, 90, 130, 172-73, 175-77, 182-94, 196,219,265-69,270 Civil War, U.S., 291 Clinton, Bill, 87, 88 Coca-Cola, 3 collective punishment, 8, 111, 175-76, 189 Collin, Steig, 156 Collusion Across the Jordan (Shlaim), 223 colonialism, 238-43, 287, 297 Committee of Arab Mayors in Israel, 283 'concentration points,' 230 Constitution, U.S., 144, 150 348 corruption, political, 85-86 Crane, Charles, 240-41 Crystal Hotel (Nablus), 192-93 curfews, 12, 30-31, 66, 79, 85, 161, 185-94,196,213,216,217 -18 Daba'a, 26, 201, 202 Dadaism, 230-31 Dahar, Anan Abu, 180 Dahiyat al Bareed, 55 Dahlan, Muhammad, 275, 276, 281 D'ana, Najah, 138-39 Danin, Ezra, 254 Dark Hope: Working for Peace in Israel and Palestine (Shulman), 135-36 Darwish, Mahmoud, 77 Davar, 133 Dayan, Moshe, 131-32, 259 day care, 206 Dead Sea, xiii Debray, Regis, 86, 278-79 Declaration of Independence, 144 Deir El Balah, 66 Deir Qaddis, 30 Deir Sharaf checkpoint, 50-52 democracy, 80-81, 265, 270, 273-74, 279,282,283-85,292 Democratic Constitution, The, 283-85 'demographic problem,' 9-14, 103-4, 111-12,113,119-27,203,287 88, 292,295-97 dense inert metal explosive (DIME), 174-75 'de-Palestinization,' 100 Dershowitz, Alan, 248 Dhahiyyeh, 60 Dheer, Ala'a Abu, 185-86 Diego Garcia bomber base, 262 disease rates, 112, 157, 166, 186 District Coordination Office (DCO), 36, 45, 52, 67, 190 divestment, 297-98 Dobkin, Eliahu, 245 Dome of the Rock, 69, 89 donkeys, 60 Drobles, Mattiyahu, 120, 124 Drobles Plan (1978), 120-23, 124 Dromi, Uri, 295 Duchamp, Marcel, 230 Index Dugard, John, 29, 64, 100, 101, 163-64, 170,177,264,266,267-68,297, 298 dunums, 18, 65, 66, 139, 277-78 Dwairy, Marwan, 283 earth mounds, 31, 194-95, 199 East Jerusalem, 63-77 boundaries of, 63-64, 68, 70-71, 76-77 building permits in, 105-7, 110, 111 checkpoints for, 66, 68-70, 72-76, 82, 205 economic situation in, 71-72, 105-7 entry permits for, 68, 72-77, 166, 205 food supplies in, 71-72 home demolitions in, 105-7, 110, 111 housing situation in, 99, 101, 105-7, 110,111-12,278 identity cards for, 54, 55, 56, 69-70, 95-100 infrastructure of, 65, 105-6, 112 Israeli depopulation efforts for, 9 5 -119 Israeli occupation of, 1-2, 8, 10, 19, 20, 24, 28, 30, 57, 63-77, 82, 91, 103-20,133,205,274,294 Israeli settlements in, 6, 12, 30, 64-65, 103-20,125-27,133,137,161,220, 27278,280 Jordanian control of, 63 land appropriations in, 64-65, 103-19 medical facilities in, 72-76 municipal plan for, 103-19 occupation of, see Occupation as Palestinian capital, 80-81, 87, 273 Palestinian population of, 63-77, 82, 105-7,264 as part of West Bank, 64-65, 68-72, 76,S0-8I,205 residence permits for, 65, 68-69, 93-102,111,115-18 schools in, 205 sewage system for, 112 unemployment rate in, 71 villages around, 5, 24, 41-43, 55, 64-65,68-72,76,87,205,278 Wall (Separation Barrier) near, 24, 68-72, 69, 70, 74, 75, 101 East Jerusalem Hospital Network, 55 Economist, 100 Index Ecumenical Accompaniment Program in Palestine and Israel (EAPPI), 210-11 education, 2, 12, 26, 27, 31, 34-37, 57-58, 65, 76, 97, 99, 109, 118-19, 129-30, 30,138, 148, 150-51, 165, 167, 196,197,203,204-7,209-12,216, 229-30,232,295 Egypt, 153, 158-60, 164-65, 166, 277 Ein Hod, 230-33 Eitam, Effie, 11 el-Arish, 159 elections, Palestinian (2006), 84, 264, 265,271-76 electric fences, 201-2 electric power, 97, 98, 100, 156, 175-76, 200,204 Electronic Intifada, 294 Eli settlement, 105, 128-29, 130 Eton March settlement, 131 Emanuel settlement, 128 English language, 81, 89, 185 Erekat, Saeb, 277 Erez, 67, 154-55, 163, 164, 168, 170 Erez Industrial Zone, 67 Essential Drugs List, 171 ethnic cleansing, 250-51, 260-61, 288-90 Ethnic Cleansing of Palestine, The (Papp€), 223 European Union (EU), 90, 273, 274 Expulsion of the Palestinians (Masalha), 223 'facilitated' categories, 55 Fatah, Ghazi, 259 Falk, Richard, 88 family life, 1-6, 21-22, 34, 61, 71, 78, 97-99, 101, 102, 106-9,113-19, 137-38, 162, 166-67, 170, 172-74, 177-86,197,205-6,217-18,226-28 Farata, 33 Farjun, Yair, 260-61 Farra, Mona el-, 153-56, 158, 164 Farsoun, Samih, 90-91, 223 Fasayel, 66 Fateh, 85, 86, 89, 167, 263-65, 269, 271, 273,275-77,278,280 Fattouh, Tabard, 186-87 Fayyad, Salem, 276 349 'Filastin al-Muhtalla' (Occupied Pal estine), xiii-xiv, see also Occupied Territories Financial Times, 91-92 Firas (ambulance driver), 184-85, 186 first intifada (1987), 79-81, 118, 162, 266 First Zionist Congress (1897), 237 Fishbach, Michael, 256-57, 259 Fishman, Alex, 172 Flapan, Simha, 223, 249, 252-53 flying checkpoints, 62, 205 Forward, 149 450th Battalion, Israeli, 191 Fourth Geneva Convention (1949), 7-8, 19, 64, 110, 183 France, 240, 241, 273 French Hill settlement (Jerusalem), 126, 128 Future Vision of the Palestinian Arabs in Israel, The, 283 Galilee, 224-28, 243, 252, 257, 258 Ganim, 36 Gaza, 153-77 agriculture in, 110, 156, 166, 169 air raids against (sonic booms), 173-74,204 air space of, 164, 173-74, 204 artillery attacks against, 172-77, 204 building permits in, 110 businesses in, 169-70 checkpoints for, 153-60, 161, 162, 163, 166-67, 170-71, 172, 277 children in, 161, 170, 172-74, 204, 277 civilian casualties in, 172-73, 176-77 closure of, 59, 82, 101-2, 115, 153-57, 161-71,196,204-5,264,268-69, 273,288-89,291 coast of, 164, 168-69 curfews in, 161 economy of, 7, 59, 78-79, 156-57, 160, 161-63, 164, 165, 168-70, 171, 175,204,264,274-73,277 Egyptian border of, 153, 158-60, 164-65,166,277 electric power in, 156, 175-76, 204 as enclave, 107-11, 153-60, 198, 204, 243, 260, 264, 291, 296 350 Index Gaza (continued) exit permits for, 153-60, 162, 163, 197 family life in, 162, 166-67, 170, 172-74,197 fishing industry of, 156, 168-69, 170 food supplies in, 59, 156, 157, 164, 168-70,171,175,204 fuel supplies for, 164, 204 governmental authority in, 264, 265, 271-76,280-81 gross domestic product (GDP) of, 162 Harass support in, 263-81 house demolitions in, 107-10, 172, 176-77 humanitarian aid for, 162, 164, 170, 171 human rights violations in, 166-77, 205,288-89 infrastructure of, 156, 161, 174-76, 204 international consensus on, 167, 172-73,268-69,273-76 Israeli military operations in, 107-11, 153-57,161,163-77,178,182,194, 204,220-21,266-67 Israeli occupation of, 1-2, 8, 10, 64, 90, 92, 107-11,133,153-77, 220-21,264-65,272-76,291,295 Israeli redeployment from, 92, 153, 156, 163-65, 260, 272-76, 288-69, 342 Israeli settlements in, 92, 133, 161, 163-64,173,287 labor force of, 157, 161-63, 164, 165, 169-70 maps of, zviii, 342 medical care in, 75, 153, 156, 158, 164,165,166,167-68,171,175, 176 occupation of, see Occupation OCHA weekly updates on, 163, 170-71 in Palestinian state, 80-81, 84-86 population of, 82, 119, 160-61, 170, 235,295-97 population registry of, 119 poverty rate in, 7, 59, 156-57, 168-70, 171,175,204,264,274-75 refugee camps in, 107-11, 160-61, 204,260 residence permits for, 84, 99, 101-2, 117, 119, 156 roadblocks in, 161 sanctions against, 167, 273-76 schools in, 109, 165, 167, 197, 204-5, 206 'security zones' in, 161 sewage system for, 175, 176 statistics on, 163, 166,169 -71 unemployment rate in, 157, 162, 165, 277 U.S. policy on, 154, 156, 165, 177, 268-69 water supplies for, 161, 175 West Bank compared with, 78, 84, 99, 101-2, 119, 156, 166, 168, 177, 178, 182,197,206,263-64 work permits for, 164, 165 see also specific towns and villages Gaza City, 79, 160-61 Gaza Community Mental Health Pro gramme, 173-74 'Gazafication,' 198 General Assembly, U.N., 10, 88, 177, 223, 253, 262, 297 General Security Service (GSS), Israeli, 38-41 Geneva conventions, 7-8, 19-20, 25, 39, 64, 79, 81, 110, 183, 294 genocide, 250-51, 260-61, 288-90 Germany, 287 Ghalia, Huda, 172-73, 266 Ghanem, Alam, 190-91 Ghazi Hospital, 192 Gilo, 56, 123, 126 Ging, John, 204 Givat Ze'eg 70 Glubb, John Bagot, 249 Golan Heights, 295 Golani Brigade, Israeli, 178-79, 227 Goldmann, Nahum, 254 Goldstein, Baruch, 82, 219 Greenberg, Gershom, 132 Great Britain, 17-18, 20, 122-23, 127, 238-41,243,248,249,262,273, 290,291 Great Powers, 273 Index Green Area, 127 Greenberg, Aaron, 223-27 Green Line (1949), 16, 198-99, 202, 274, 295 gross domestic product (GDP), 162 Gush Dan, 128 Gush Emunim (Bloc of the Faithful), 120, 132-33 Gush Etzion, 30 Gush Katif, 260 Gush Shalom, 285 H1 area (Hebron), 211, 213, 218,343 H2 area (Hebron), 211-12, 213, 216, 220,343 Ha'aretz, 91, 165, 260, 265, 277, 289, 292 Habibi, Emile, 221-22,230 Habla, 26, 201, 202 Haddad, Laila el-, 158-60, 164-65 Haganah, 201, 234, 248, 250, 251 Hague Convention Respecting the Laws and Customs of War on Land, 19 Haifa, 23, 78, 235, 251, 252, 253, 256, 257,286-87 Haifa Covenant, 283 Halhul-Sa'ir junction, 105 Halper, Jeff, 285 Halutz, Dan, 266 Hamad, Yusuf Abu, 107 Hamas, 84, 86, 89, 167, 263-61 HaMoked, 114, 154-55 Hanani, Muhammad, 49 Hanson, Victor Davis, 144 Haram al-Sharif, 89 Har Homa settlement, 64, 126-29, 126, 278 Hass, Amira, 76-77, 220-21 Hayja, Muhammad Abu al-, 232-33 health care, 26-28, 32, 36-37, 42-43, 49-52,55,57-58,65,72-76,153, 156, 158, 164, 165, 166, 167 68, 171,175,176,183-87,192-93 Hebrew language, 27, 45, 48, 73, 97, 193, 223 Hebron, 30, 33, 56, 57, 60, 67, 76, 78, 82, 112-13,135-42,195,197,209-21, 213, 214, 215, 217, 218, 343 Hebron Civil Administration, 60 Hebron massacre (1994), 82, 219 351 Hedges, Chris, 266-67 Herzl, Theodor, 236-37 High Court of Justice, Israeli, 12, 29, 79, 84, 90, 105, 117, 123, 146, 263 Hinnom Valley, 110 Hizballah, 269-70 Hizma, 55, 73 Holocaust, 285-86 holy sites, 56-57, 69, 86, 89, 102, 110, 195, 196, 218, 219 housing permits, 101, 105-7, 111 humanitarian aid, 55, 56, 62, 135-36, 142, 162, 164, 170, 171, 183, 209-12,279,280,281 Human Rights Council, 177 Human Rights Watch, 182 'human shields,' 180-81, 183 Huwwara checkpoint, 44-117, 46, 49, 66, 67,104 Ibrahimi Mosque, 57, 212, 219 identity cards, 2, 5, 35-36, 40, 43, 45, 47, 51,33-54,55,36,69-70,95-102, 114, 117, 119, 181, 189-90, 191, 219 Idhna, 137 imperialism, 238-43, 287, 297 import taxes, 71 income levels, 61, 63, 102, 162 infant mortality rate, 102 informers, 38-41, 76-77, 79, 164 intelligentsia, 206-7, 286 International Convention on the Elimina tion of All Forms of Racial Discrimi nation, 282-83 International Court of Justice (ICJ), 8, 15,20,28,83-84,119,274,294 International Monetary Fund (IMF), 85-86 interrogations, 38-41, 76-77, 79, 164, 181,183 intifada, first (1987), 79-81, 118, 162, 266 intifada, second (2000), 7, 8, 89-91, 107, 109-10,166-67,265-66 Iran-Contra affair, 165, 275 Iraq, 133 Ireland, 153, 154, 155-56 'iron wall,' 13-14, 223, 243, 288 'Iron Wall, The' (Jabotinsky), 13-14, 288 Iron Wall, The (Shlaim), 223 352 Index Iskaka, 30-31 Islam: fundamentalist, 289 holy sites of, 56-57, 69, 86, 89, 102, 212,219,231,234 political influence of, 271-72, 273, 289 religious observances of, 56-57, 219 Shia, 269, 270 Sunni, 269 Israel: agriculture in, 229, 233, 236, 244 air force of, 67, 68, 173-74 army of, 30-32, 49, 56, 57, 65, 66-68, 104-5, 112-13, 186, 201, 220, 249, 250-51 borders of, xiii-xiv, 3-4, 23, 28, 91-92, 120,143,154,155-56,203,225-26, 238,239-40,274,289,295 British support for, 238-39, 240, 246, 249, 273, 290 children in, 138, 143, 150, 209-12, 295 citizenship of, 9, 11-12, 17, 77-78, 101-2, 112, 116-17, 118, 143-50, 230,238,239,278,281-84 civilian casualties in, 8, 80, 82, 88, 90, 130,172,175-76,177,194,265-66, 268-69,270 constitution for, 283-85 defense force of, 30-32, 49, 56, 57, 65,66-68,104-5,112-13,186,201, 220,249,250-51 as democracy, 116, 143-45, 150, 241, 265,270,273-74,279,282,283-85, 290,292-97 'demographic problem' of, 9-14, 103-4, 111-12, 113, 119-27, 203, 287-88,292,295-97 divestment movement against, 297-98 economy of, 78-79, 102, 144, 161, 162 electric power in, 229-30, 232, 234 flag of, 199, 223 founding of, 10, 18, 63, 68, 80, 82, 145,201,221-34,274 government of, 10-11, 28-29, 61, 80, 91-92, 100-101, 102, 106, 111, 116,120,125-27,133-34,143-50, 163-64,203,206,253 -57, 274-75, 284, 292, 297 historical analysis of, xiii-xvi, 221-28, 246-50,290,295 independence declared by (1948), 224,227,234-36,248-49,250,251, 274 infant mortality rate in, 102 international recognition of, 80, 274 Jewish immigration to, 11, 12, 17, 99-101,116,127-29,162,224,235, 236,245-46,255,285-86 Jewish population of, 97, 99-119, 239, 263,279-80,295-97 as Jewish state, 9-14, 77-78, 99-101, 113-14,116-17,132-33,143-50, 228,234-47,254,281-98 labor market in, 21-22, 56, 78, 101, 161-63,198 Land of (Eretz Israel), 10-12, 131-33, 134,246 Law of Return for, 12, 17, 100-101, 116, 129, 148, 150 legal system of, 11, 12, 13, 16-19, 53-54,64,68,79,84,100-101, 113-17,127,129,132-35,143-50 marriage in, 148-49 as multicultural state, 293-98 nationality in, 11-12, 77-78, 101-2, 112,116-17,118,143-50,230,278, 281-84 national security of, 7, 13, 16, 22-23, 28, 52, 80, 82, 88, 90, 136, 194, 262, 296 navy of, 168-69 occupied territories of, see Occupied Territories official maps of, 21, 81, 92-93, 228-30 Palestinian population of, 9-14, 77-78,98-127,132-34,143-48, 150, 160, 203, 227 49,258-59, 261-62, 263, 264, 278, 281-98, see also Palestinians parliament of (Knesset), 11, 100, 116, 147,284 peace movement in, 135-36, 142, 285-90,293,297-98 per capita income of, 102 Index police forces of, 41-43, 48-50, 56, 57, 67, 72-76, 96, 97, 118, 135, 137, 142,191-92,211,232 poverty rate in, 102 pre-1967 borders of, 9, 10, 16, 63-64, 91,93,131-32,133,280,283,287, 295 religious laws in, 132-33, 148-50 schools in, 129-30, 138, 150-51, 206, 229-30,232,293 social services in, 125, 203, 206, 274-75,284 state identity numbers in, 113-14 tourism in, 56, 196 'unrecognized' villages in, 221-36 U.S. support for, 63, 86, 87-91, 143-44, 149-50, 154, 156, 165, 177, 183,268-69,271,273-76,281 water supplies in, 229-30, 232, 234, 236 Israeli Population Administration, 116 Israel Land Administration (ILA), 146-47,233,236 lzbat Jalud, 15-16, 22, 23 Jabal Abu Ghneim, 64, 126-27,126 Jabali, Muhammad, 49 Jabalia refugee camp, 79 Jabbour, Ayman al-, 169 Jabel al-Mukaber clinic, 43 Jabotinsky, Vladimir, 13-14, 242-43, 246, 288,289 Jaffa, 78, 234-36, 235, 237, 243, 246, 257, 260, 285 Jaljoulia checkpoint, 30 Jalud, Mohammad, 15-16, 17, 22-23, 24, 25,57,38-59 Janco, Marcel, 230-31 Jawila, Amal Abu, 117 Jawila, Mirfat Abu, 117 Jayyus, 25 Jefferson, Thomas, 144 Jenin, 57, 90, 182-84, 190-91, 194, 205-6,230 Jericho, 55, 57 Jerusalem, 98-119 boundaries of, 24, 63-64, 68-71, 125-26 British mandate for, 243 Damascus Gate of, 95 353 demographics of, 103-4, 111-12, 113 East, see East Jerusalem expansion of, 63-64, 68 holy sites of, 56-57, 69 housing units in, 64, 111-12 as Israeli capital, 63, 64, 100-101, 103,246 Jewish population of, 97, 99-119 map of, 339 Master Plan for (1978), 103-4 municipal plans for, 64-65, 92, 103-19, 12.27 Palestine Inside Out: An Everyday Occupation Old City of, 63, 126 Palestinian population of, 24, 63-77, 82,9&-119,155,160 resident permits for, 65, 68-69, 70, 95-102,111,115-18 suburbs of, 55, 87, 99, 117 tourism in, 110 'unification' of, 103-4 West, 92, 97, 100-101, 112 Jerusalem Media and Communications Center, 265 Jerusalem Post, 150, 288 Jesus Christ, 126, 138, 196 Jewish Agency, 145, 146, 245 Jewish National Fund (JNF), 12, 145-47, 228, 233, 250, 254, 284 Jewish State, The (Heal), 236-37 Jews: assimilation of, 238-39 beliefs of, 97, 99, 128, 132-33, 148-50,241,257 conversions of, 149-50 Diaspora of, 12, 262 European, 237, 239, 285-86 holidays of, 209 holy sites of, 56, 102, 110, 218, 219 Mizrahim, 235 Orthodox, 148-50 prejudice against, 237, 239, 285-87, 290 Russian, 11, 12, 17, 99, 100, 162, 224 Sephardim,235 as settlers, see settlements, Israeli U.S., 127-28, 149-50, 276 Jim Crow laws, 290, 291 Jinba, 134 Jinsafut, 104 354 Index Jit checkpoint, 49 Johansson, Tove, 211 Johnson, Samuel, xv Jordan: in Arab-Israeli War (1948), 224, 225, 227,249 border of, 3-4, 115, 154, 155-56, 240 Palestinians in, 3-4, 97-98, 99, 114-15,261,272 West Bank administered by, 18, 20, 63 Jordan River, 3, 87, 155 Jordan Valley, 55, 57, 77, 92, 101, 120 Joseph, Dov, 245 Jubara,26 Jubran, Ahmed, 100 Judaism, 97, 99, 110, 128, 132-33, 148-50,241,237 Judea, 11, 16, 131-32, 295 Kadim,36 Kaf, Daoud Abu, 106-7 Kafr ad Dik, 32 Kafr Aqab, 70-71 Kafriat tunnel, 66 Kafr Qaddum, 67 Kafr Saba, 201 Kafr Sur, 66 Kahana, Talyah, 130 Kalub, Anwar, 108 Kanafani, Ghassan, 286-87 Kaplan, Eliezer, 245 Kaplinsky, Moshe, 16-17 Karim, Abu, 212-20 Karmel, 66 Kanni Tzur settlement, 105 Karni, 163, 164, 166, 170, 171 Kasrils, Ronnie, 291 Katzir, 146 Katznelson, Avraham, 245 Kedumim,51 Kedumim-Shavey Shomron bypass road, 50 Kefar Sava, 201 Kerem Shalom, 163, 164, 165, 171 Kfar Thulth, 33 Khalidi, Rashid, 223 Khalidi, Walid, 223, 228, 246,256 Khamis, Abdallah, 47-48 Khan Younis, 266-67 Kheiri, Mohammad, 50-52 Khirbet al-Salman, 25 Khirbet Jbara, 66 Khleifi, Michel, 223-28 Khouri, Zahi, 3 Kibbutz Fared, 223-24 kibbutzim, 223-24,245,226 Kidron Stream, 110 Kimchi, Israel, 103 Kimmerling, Baruch, 13 King, Henry, 240-41 King-Crane Commission, 240-41, 289-90 King's Valley, 110 Kiryat Arba settlement, 78, 105, 138-39, 219 Knesset, 100, 116, 147, 284 Kollek, Teddy, 104,112 Kuttab, Daoud, 96-97 labor market, 21-22, 41, 56, 78, 101, 157, 161-63,164,169-70,198 Labor Office, Israeli, 164 Labor party, 11, 120, 130, 132, 133 land ownership, 6, 9-32, 33, 57, 65, 68, 77-78,91-93,105-11,119-27, 135-40,145-48,19&-203,231-33. Palestine Inside Out: An Everyday Occupation 75-79, 88-- 95 , 128,'39-56,i69--70,174n, 2 59, 2 74,336 election of 1932 and, 88-89, 98, Too, 103 - 4 , 132-33,134,140,146,151, 280 FDR's role in deepening of, 181-82 foreign causes of, 141-47 Hoover and, see Hoover, Herbert, Depression and New Deal failure in, 327-28, 331-32 origin of name for, 77 stock market crash and, 2, 76, 94 see also bank crisis; unemployment De Priest, Oscar, 294 Dem, George, 167 Despres, Leon, 105, 148 Dewson, Molly, 113 Dickerman, Marion, 113-14,321, 3607 Dienhatt, John, 173 divorce, 44, 113, 114, x68, 247, 260, 307, 3547 Dodd, Walter E, 1637 Dodd, William E., 1637 Dos Passos, John, 83 Doughton, Robert L, 316, 317 Douglas, Helen Gahagan, 239 ' Douglas, Lewis, 160-6i, 236, 250, 285, 324 404 Douglas, Melvyn, 240 Dow Chemical Company, 247-48 Draper, George, 5-53,55,3 28 Dun, Bishop Angus, 335 Durant, Will, 63 Earhart, Amelia, 116, 261 Early, Steve, 6311, 65, 306 . The Defining Moment: FDR's Hundred Days and the Triumph of Hope WHITE HOUSE GHOSTS ' its emphasis on the market and disdain for activist government, bore little resemblance to the raft of legislative proposals for which Johnson was seeking a name.* White House Ghosts: Presidents and Their Speechwriters 'President Bush today hailed the free enterprise system in a commencement speech to thousands of graduating University of Michigan students who are embarking into the worst job market in a decade,' the story said. White House Ghosts: Presidents and Their Speechwriters Moreover, although zooz was a dis appointing year for US equity investors, the market surged ahead thereafter, exceeding its previous peak (at the height of the `dot com' mania) in the autumn of zoo6. The Ascent of Money: A Financial History of the World Nor was the US stock market's per formance exceptional. The Ascent of Money: A Financial History of the World Emerging market bonds also rose strongly and real estate markets, especially in the English-speaking world, saw remarkable capital appreciation. The Ascent of Money: A Financial History of the World Increasingly, its discount rate was seen as the minimum short term interest rate in the so-called money market (for short-term credit, mostly through the discounting of commercial bills). The Ascent of Money: A Financial History of the World 6x THE ASCENT OF MONEY bond market, the stock market, the insurance market, the real estate market and the extraordinary globalization of all these markets that has taken place over the past twenty years. The Ascent of Money: A Financial History of the World People who had invested in bonds for their retirement before the market move would be zz per cent worse off, since their capital would have declined by as much as the bond price. The Ascent of Money: A Financial History of the World And people who wanted to take out a mortgage after the market move would find themselves paying at least 0.41 The Ascent of Money: A Financial History of the World per cent a year (in market par lance, 41 basis points) more. The Ascent of Money: A Financial History of the World This oligarchical power struc ture gave the bond market a firm political foundation. The Ascent of Money: A Financial History of the World In London by the mid eighteenth century there was a thriving bond market, in which government consols were the dominant securities traded, bonds that were highly liquid - in other words easy to sell - and attrac tive to foreign (especially Dutch) investors.' The Ascent of Money: A Financial History of the World Within just a few years of Napoleon's final defeat at Waterloo, a man who had grown up amid the gloom of the Frankfurt ghetto had emerged as a financial Bonaparte: the master of the bond market and, some ventured to suggest, the master of European politics as well. The Ascent of Money: A Financial History of the World Similar stories were being told in the Pale of Settlement, to which Russian Jews were confined, as late as the 189os zs As we have seen, the Nazis preferred to attribute the rise of the Rothschilds to the manipulation of stock market news and other sharp practice. The Ascent of Money: A Financial History of the World 95 THE ASCENT OF MONEY Yet the South's ability to manipulate the bond market depended on one overriding condition: that investors should be able to take physical possession of the cotton which underpinned the bonds if the South failed to make its interest payments. The Ascent of Money: A Financial History of the World True, the rise of savings banks (which were often man dated to hold government bonds as their principal assets) gave new segments of society indirect exposure to, and therefore stakes in, the bond market. The Ascent of Money: A Financial History of the World Even as recently as the 1970s, as inflation soared around the world, the bond market made a Nevada casino look like a pretty safe place to invest your money. The Ascent of Money: A Financial History of the World Even more remarkably, despite the spectacular Argentine default - not to mention Russia's in 1998 - the spreads on emerging market bonds have trended steadily downwards, reaching lows in early 2007 that had not been seen since before the First World War, implying an almost unshakeable confidence in the economic future. The Ascent of Money: A Financial History of the World After the advent of banking and the birth of the bond market, the next step in the story of the ascent of money was therefore the rise of the joint-stock, limited-liability corporation: joint-stock because the company's capital was jointly owned by multiple investors; limited-liability because the separate existence of the company as a legal `person' protected the investors from losing all their wealth if the venture failed. The Ascent of Money: A Financial History of the World By April x720 the price had risen to £235 and it continued to rise as investors 153 THE ASCENT OF MONEY Brokers turning coin into Mississippi stock and wind: engraving from The Great Scene of Folly (1720) exited the Paris market for what seemed the safer haven of London (then in the grip of its own less spectacular South Sea Bubble). The Ascent of Money: A Financial History of the World Having agreed on conver sion prices for the annuities and other debt instruments, the directors of the South Sea Company stood to profit if they could get the existing holders of government annuities to accept South Sea shares at a high market price, since this would leave the directors with surplus shares to sell to the public.' The Ascent of Money: A Financial History of the World This is when the Wall Street crash is conventionally said to have begun, though in fact the market had been slipping since early September and had already suffered a sharp 6 per cent drop on z3 October. The Ascent of Money: A Financial History of the World In the course of the next three years the US stock market declined a staggering 89 per cent, reaching its nadir in July 193z. The Ascent of Money: A Financial History of the World According to Friedman and Schwartz, the Fed should have aggressively sought to inject liquidity into the bank ing system from 19 z9 onwards, using open market operations on x63 THE ASCENT OF MONEY a large scale, and expanding rather than contracting lending through the discount window. The Ascent of Money: A Financial History of the World Aggressively buying government bonds in the open market, the Fed injected badly needed cash into the system, push ing down the cost of borrowing from the Fed by nearly z per cent in the space of sixteen days. The Ascent of Money: A Financial History of the World 167 THE ASCENT OF MONEY in the phrase of his precursor but three, William McChesney Martin, Jr.'' To give Greenspan his due, his Just-in-time monet ary policy' certainly averted a stock market crash. The Ascent of Money: A Financial History of the World Not only were the 193os averted; so too was a repeat of the Japanese experience, when a conscious effort by the central bank to prick an asset bubble ended up triggering an 8o per cent stock market sell-off and a decade of economic stagnation. The Ascent of Money: A Financial History of the World Not for the first time in stock market history, an asset-price bubble created the perfect conditions for malfeas ance as well as exuberance. The Ascent of Money: A Financial History of the World With the coming of peace, politicians in Britain also hastened to cushion the effects of demobilization on the labour market by introducing an Unemployment Insurance Scheme in 19zo.' The Ascent of Money: A Financial History of the World And he assured Pinochet: `The end of inflation will lead to a rapid expansion of the capital market, which will greatly facilitate the transfer of enterprises ar3 THE ASCENT OF MONEY and activities still in the hands of the government to the private sector.''' The Ascent of Money: A Financial History of the World In January 1oo8 I visited Santiago and watched brokers at the Banco de Chile busily investing the pension contributions of Chilean workers in their own stock market. The Ascent of Money: A Financial History of the World The annual rate of return on the Personal Retirement Accounts has been over to per cent, reflecting the soaring per formance of the Chilean stock market, which has risen by a factor of 18 since 1987. The Ascent of Money: A Financial History of the World The only real difference between Right and Left was the readiness of the Conservatives to deregulate the private rental market, in the hope of encouraging private landlords, and the equal and opposite resolve of Labour to reimpose rent con trols and stamp out `Rachmanism' (exploitative behaviour by landlords), exemplified by Peter Rachman, who used intimidation to evict the sitting tenants of rent-controlled properties, replacing them with West Indian immigrants who had to pay market rents.' The Ascent of Money: A Financial History of the World The S&Ls were simultaneously losing money on long-term fixed-rate mortgages, because of inflation, and haemorrhaging deposits to higher interest money market funds. The Ascent of Money: A Financial History of the World The response in Washington from both the Carter and Reagan administrations was to try to salvage the entire sector with tax breaks and deregulation,* in the belief that market forces could solve the problem.' The Ascent of Money: A Financial History of the World Elsewhere, however, the combination of declining long-term interest rates and ever more alluring mort gage deals did attract new buyers into the housing market. The Ascent of Money: A Financial History of the World `Property rights will eventually lead to democracy,' de Soto has argued, `because you can't sustain a market-oriented property system unless you provide a demo cratic system. The Ascent of Money: A Financial History of the World But while encouraging home ownership may help build a political z8r THE ASCENT OF MONEY constituency for capitalism, it also distorts the capital market by forcing people to bet the house on, well, the house. The Ascent of Money: A Financial History of the World But we should not be lured into staking everything on a highly leveraged play on the far from risk-free property market. The Ascent of Money: A Financial History of the World The Vienna market was the first to close (on 17 July). The Ascent of Money: A Financial History of the World [because] the influx of hot money into and out of the country that so frequently follows after capital market liberalization leaves havoc in its wake ... The Ascent of Money: A Financial History of the World `Not only do market partici pants operate with a bias', Soros argues, `but their bias can also influence the course of events. The Ascent of Money: A Financial History of the World It is the feedback effect - as investors' biases affect market outcomes, which in turn change investors' biases, which again affect market outcomes - that Soros calls reflexivity. The Ascent of Money: A Financial History of the World The returns on the planet's stock market would be normally distributed along the bell curve (see Chapter 3), with most years clustered closely around the mean, and two thirds of them within one standard deviation of the mean. The Ascent of Money: A Financial History of the World Banks wanting to protect themselves against higher volatility - for example, another 1987-style stock market sell-off - were happy buyers. The Ascent of Money: A Financial History of the World When losses began to mount, many participants simply withdrew from the market, leaving LTCM with a largely illiquid portfolio of assets that couldn't be sold at any price. The Ascent of Money: A Financial History of the World And Chimerica - or the Asian `savings glut', as Ben Bernanke called it'' -was the underlying reason why the US mort gage market was so awash with cash in zoo6 that you could get a Too per cent mortgage with no income, no job or assets. The Ascent of Money: A Financial History of the World black box see Black-Scholes model `Black' days 164, 169 black (or grey) economic zones 2 75 `Black Mondays': 1929: 158 1987 see financial crises black people see African American people Black-Scholes model (black box) 3 20- 4,325,327-8 Blackstone 337 `black swans' 342 `Black Thursday' 158 Blain, Spencer H., Jr. z56-8 Blankfein, Lloyd i-z, z8 Bleichroeder (Arnhold & S.) 315 Bloch,Ivan z97 Bloomfield, Arthur 305 Blunt, John 155-6 BNP Paribas 271 Bolivia z, 119, 171, 219, 278-9 Bolsheviks 107, 303, 304 bonds and bond markets 64, 65 - x18,341 benefits of 3, 341 bond insurance companies 347, 355 boom 332, 336 bundled mortgages see securitization
407 collateral for 94, 96 compared with mortgages (spread) z41-z compared with stock markets 124-5 cotton-backed 94-6 crises and defaults 73, 97, 98-loo, 110, 113, 114-I6, 125 definitions 65 - 9, 73, 76 - 7 emerging market bonds see emerging markets face value (par) 73, 76 future of x15-16 government see government bonds history 65-7, 71-8, 81-3, 86-7 importance and power of 67-9, 73,7 6 , 8 9 - 90,341 inflation and 105, 108, 115-16 insurance companies and 198 interest rates 67, 73, 336 liquidity 71, 76 and mortgage rates 68 and pensions 67, 68, 116-17, x13 perpetual bonds 76 Right- and Left-wing critics of 89-90 Rothschilds and So-91 and savings institutions x16 and taxes 68, 99 vulnerability of 99, 115 war and 69-75, 77, 79, 8o-83, 90 - 1, 93-7,98, 100 - 107, 1' 1 widening access to loo, I or INDEX bonds and bond markets - cont. The Ascent of Money: A Financial History of the World budget deficit and federal debt 117-18 and Enron 170-71 and home ownership 267 businesses see companies; entrepreneurs Business Week 122-3 Calais 73 Calancha, Fray Antonio de la z3 Californian energy deregulation 1 7 0 ,171 California Public Employees' fund 222 call options I2, 227 Cambi, Bernardo 187 Cambodia 278 Camdessus, Michel 312 Canada 147, 233, 292, 293 cancer 184 Canetti, Elias 105 Cantillon, Richard 145 Canton see Guangzhou capital: adequacy see banks appreciation 125, z6z controls 303, 305-6, 313, 333 `dead' 275, 277 export/mobility 1zz, 293-7, 3 0 3 , 3 0 5 -6, 3 08 ,3 0 9,333 - 4 market see capital market INDEX Capital Asset Pricing Model (CAPM) 313 capitalism: and accumulation 17 and the company I19-zo evolutionary processes in 348-9 and hyperinflation Io6 and money 17 and war 197-8 and welfare state 211 capital market: alleged improvement 6 liberalization 310-11 Capital One 353 CAPM see Capital Asset Pricing Model Capra, Frank 2.47 The Ascent of Money: A Financial History of the World 283, 288, 307, 3 0 9, 3 2 4, 333, 336, 358 emerging market bonds 6, 116, 3 z6n. The Ascent of Money: A Financial History of the World see also futures contracts Spencer, Herbert 351 spices 127, 130-31, 135 spreads 241, 326 squatters 276-7, 277 squirrel skins z5 Sri Lanka 134 stagflation 211 Standard and Poor's (S&P) 268 Standard and Poor's 500: sterling see pound sterling Stevenson, George 60 Stewart, Jimmy 247-8 Stiglitz, Joseph 310-13 stockbrokers 153-4 Stockholm 48-9 stock markets and exchanges: benefits of 341 bubbles Iz1-4, 154 Chile 2,18 closure of 300, 301-2 compared with bond markets 124-5 compared with property market 161-3 crashes IZI-2, 157-66, 174, 324 as discipline on companies 120 foreign stock exchanges 293 forward/futures markets 137, 133 fraud rzi-2 history of 3, 6, 74, 121-4, 1 3 1- 3,33 2, 34 1 indices 164-5 and inflation Iz3 insurance companies and 196-8 international comparisons Iz5 mechanical selling 165 and pensions see pension funds speculators 121 stock exchanges 3, 74, 131 - 3, 300,301-2 and supply of credit 132 total capitalization of the world's 4 volatility and risks 6, 13, INDEX 120-ZI, 125-6,x36, 159, 167,174,3 21 ,3 7 4 -8, 344 war and 125, 136, r69 and First World War 297, 199-300 stocks see shares Stowe House 236-40 Strong, Benjamin 161 `structural adjustment' 309 structured investment vehicles (SIVs) 5, 9, 272, 355 Styal 94 subprime lending 8-9, 264-74, 783, 336 and black and Latino borrowers 266-7 responsibility for 766-8, 2 , 73 - 4,33 6 sugar 285 Sunbelt 255 Sun Insurance Office 187 swaps 4, 227, 323 Sweden 48-9, 125, 209 Swift, Jonathan 157 Swiss National Bank 57 Switzerland 57, 125, 144 Sword Blade Company 157 Syria z tail risk 127, 344 Taiwan 339 Tanzania 176 tariffs: protectionist 303 rising 287 taxes: bond markets and 68, 99
438 British 2Io-Ir, 257 collection 76, 142, 146 in debtor countries 309 excise 7z Florentine 45, 71, 72 land 230 and mortgage payments z5z and property law reform 275 savings discouraged by zrI Taylor, Gene 181 Teamsters Union 755 technological innovation: evolutionary 350 history of 8, 16o, 785-6 and inflation I16 transferability 787 weaponry 785, 797 technology companies 124 Temasek 337n. The Ascent of Money: A Financial History of the World United Kingdom see Britain United Netherlands East India Company see VOC United Provinces: bond market 75 currencies in 48 and East India Company see VOC and Mississippi Bubble 153 - 5 power of 3, 74-5 rentiers in 75 rivalry between provinces I z9 see also Netherlands, The United States of America: ageing population 2.x9-z1 The Ascent of Money: A Financial History of the World `American empire' 309-10 banking system 57-8 British investment in 293 budget deficit 118 currency policy 338 debt and bankruptcy in 59-61 defence industry 317 depression see depressions divisions in society see race divisions France and see Louisiana government bonds 3 2 3 health care and insurance 61, ZI1,119-z1 home ownership see property/ real estate and IMF and World Bank 309-Iz immigration and population z86, z88 imports 10, 334 incomes 1-z, 61, z84-5, 333 - 5 industrialization z85 inflation I o8, 111, 335 insurance 199 international borrowing 334 - 5 337 overseas aid and investment 305 - 7 public ignorance about finance xo-11 real estate see property/real estate recession prospects 8, 336-8 savings 333-5 social divisions see race divisions stock market 6, 17.5, The Ascent of Money: A Financial History of the World Wilson, Harold z34 wine market 6, 332 Winfrey, Oprah z67 Wisselbank see Amsterdam Exchange Bank Wizard of Oz, The 241 women: discrimination against 5, x79 as entrepreneurs 278-9, 2-78-80,333 workers see labour workhouses 199-203 World Bank (former International Bank for Reconstruction and Development and International Development Association) z88n., The Ascent of Money: A Financial History of the World In Philadelphia and New York, the market ruled. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The framers were not banishing faith from the public square but they were banishing the possibility of state monopoly in the market of creeds. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country We made the market. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Trains were as important as ever-to get Iowa's farm products to market, and import the cheap goods that most Iowans were very happy to buy. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country See also Great Britain Enlightenment, 63 environment as American Argument, 7,2t2-26 carbon in, 214, 221, 223 and climate change, 223-24 and coal, 212, 221-23, 224, 225-26 and Congress, 216, 222 conservation of, 212, 213,214, 216, 218 and corporations, 221, 224-25 and economic issues, 216 and endangerment of earth, 21-7 and foreign relations, 207 and global warming, 224,225 and 'greenhouse effect,' 221, 223 and land settlement, 214, 215-16 and market forces, 221-22 and media, 217 and nature as 'used up,' 214 and oil, 213, 217, 220-21 and roots of 'environmentalism,' 216-21 and science, 224 and sense of perspective, t8 and strip mining, 219, 221-23, 225 in Western U.S., 218-tg See also land Environmental Protection Agency (EPA), U.S., 217-18 equal rights, 23, 3o, 66 Equal Rights Amendment (ERA), 70 Espionage Act (1917), 77, 85, 88, 245 Essex Junto, 147 Ethics Committee (U.S. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Madison (1803), 115-16 market forces and balancing of forces of domination, 18 and environment, 221-22 and foreign relations, 198, 201, 204-5, 207-8 and immigration, 41 and who is a person, 27, 28, 34 marriage, 26, 73, 122, 154, 155, 236 Marshall, John, 115-16, 166-67, 168 Marx, Leo, 214 Massachusetts individualism in, 102,107 and local vs. federal authority, 145, , 4 6- 47, , 49, , 54 ,1 55 Shays' Rebellion in, 165 slavery in, 28 See also Boston, Massachusetts Massachusetts Bay Colony, 27 Matthews, Chris, 172 73 Mayer, Jane, 75 Mayflower Compact, 27, 98, too Mazzoli, Ron, 49 Mead, Walter Russell, 201 media, t6, 17,171-73, 217, 234, 2 43 . The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country At the top of that list was probably the ability to handle volatility-experience plucked right out o£ my lifeThis fact about myself struck me one day at work when the Dow started going crazy and went over r,ooo, sending thrilling shock waves through the market. The Pursuit of Happyness Bear Stearns had only six to seven hundred brokers, and instead of being mass-market-the mom-and-pop investors, folks wanting IRAs and utilities, meat-and-potatoes-this smaller partnership was going after bigger fish in the institutional invest ment business: banks, pension funds, insurance companies, money managers, bigger businesses. The Pursuit of Happyness It didn't help that I was secretly afraid that this very thing was my only salable skill in the American media market. The Great Derangement: A Terrifying True Story of War, Politics, and Religion O - GREENSPAN'S BUBBLES
It is oddly ironic that a small group like the Federal Open Market Committee (FOMC),' similar to those found at all levels of any former communist regime, would be in charge of the world's largest and most suc cessful capitalist country-that is, the United States of America and its $13 trillion economy. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve +47• 48 ' GREENSPAN's BUBBLES
n his book The Age of Turbulence, Greenspan absolves himself of the blame he deserves for acting so irre sponsibly during the later-and truly maniacal-years of the stock market bubble. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve You can't tell when a market is over valued, and you can't fight market forces. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve One month later, the market was almost 5 percent higher than where it had been two months prior, but Greenspan not only refused to reverse his move, he also 56 - GREENSPAN's BUBBLES
cut rates again, this time down to 4.75 Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve 58 ° GREENSPAN's BUBBLES
Throughout the book, I've pointed out that the market averages kept climbing during this period, but I haven't yet detailed the speculation that was occurring. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve The stock market was valued at 180 per cent of gross domestic product (GDP), over 100 percent higher than the 85 percent of GDP it reached during the last bubble in 1929. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve Their speculative mania seems quite tame by comparison, as the price/earnings ratio for the Japanese stock market index, the Nikkei, topped out around 80, while the last five years of appre ciation was an almost modest sounding 230 percent. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve During that early summer meeting, Greenspan used the term 'stock market' just once but only in passing. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve Presumably, the market decline did damp some views of future earn ings, but there's little evidence of that in the data. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve This move demon- 114 • GREENSPAN s BUBBLES
strated that Greenspan did not have a handle on what was happening with the economy but was pushed into action when the stock market experienced a couple of bad days. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve However, it was by surprising the stock market that he reinforced for all the world to see the notion of the Greenspan Put. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve 122 • GAEENSPAN's BUBBLES
The terrible tragedy of September 11, 2001, was not the primary reason for the declining stock market or the weak economy in late 2001 and 2002, though both were obviously negatively impacted by the terrorist attacks on the United States and the disruptions that fol lowed. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve The country's financial troubles were due 124 • GREENSPAN'S BUBBLES
to the stock market bubble that had burst. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve these are the very same instruments that led to the financial market turmoil of late 2007 in which so many huge 128 ° GREENSPAN'S BUBBLES
financial firms were crippled. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve It was a perfect example of what not to do, that is, wait too long to address the market imbalances. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve (In the early 1980s, homeowners' average equity equaled 70 percent of the house's market value; by 2003, it was down to only 55 percent.) Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve Of course, the net decline in the market value of stocks has greatly exceeded the 140 - GREENSPAN's BUBBLES
additions to capital gains on homes over the past two years. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve No nation has ever had such a big debt as America has, and it's bigger than it was at the peak of the stock market boom. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve 152 ° GREENSPAN'S BUBBLES
B y late 2003, the housing market was red hot. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve What transpired at that time in the mortgage market was outlandish by historical standards, although rela tive to later developments it was somewhat pedestrian. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve The housing market was quickly 154 ° GREENSPAN'S BUBBLES
becoming a dangerous game of hot potato, and the only ones who seemed to care was anyone left holding the hot potato-a mortgage about to default. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve However the 'fallout' he was referring to was the ending of an economic expan sion, not the stock market bubble. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve What Greenspan also failed to comprehend is that even if he and the FOMC members had seriously discussed the stock market bub ble and concluded that it would be safer to deal with the aftermath than try to put a stop to it, as he claims they did, it would have been a terrible decision. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve And his great 2000 bubble, partly indeed his 168 - GREENSPAN'S BUBBLES
creation, peaked 65 percent higher than any previ ous market. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve As Figure 12 illustrates, the amount of money extracted from homes in the post-stock market bubble 170 ° GREENSPAN'S BUBBLES economic recovery was staggering; it totally dwarfs what occurred in the past. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve The chart also makes clear how abnormal home-equity withdrawal was in the post-stock market bubble economic recovery com pared to those of the past and that without it, the eco nomic growth from 2001 to 2007 would barely have registered as an economic expansion by historic Stan U50 $een $tso $iaa $50 $o 450 www.contraryinvestor.com; Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve But guess what? When prices stop rising-as they always do-reality sets in, the market blows up, and housing prices fall. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve 1083- ' 2091 3090 1001 1002 current 176 - GREENSPAN'S BUBBLES
and it is the real estate market that will create the hang over we will all experience over the next several years. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve So, just how big was the party? It is dif ficult to illustrate the national real estate market and the wild lending practices that supported it with just one example. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?' At the time of the speech it was interpreted to mean that the Chairman was concerned about a frothy stock market. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve And this is what it must have been like when indulgences were openly sold in Rome, and when a nail or a splinter from the Crucifixion could fetch a nice price in any flea market in Christendom. God Is Not Great: How Religion Poisons Everything the market will ensure adequate supplies of inexpensive oil, and the Arab-Israeli peace process will succeed-has vitiated the Founders' careful, checks-and balances-laden delineation of the process by which the United States would go to war, a process meant to leave that decision in the hands of the elected members of the U.S. Congress, not to the president, and certainly not to foreigners seeking our wealth and military protection. Marching Toward Hell: America and Islam After Iraq investing in One Lesson is written for: Investors who want a quick understanding of how Wall Street works, and a simple, successful formula to build wealth in the stock market. Investing in One Lesson Frustrated with their inability to make money, many I5 This Your Story? 5 of them simply abandon the stock market and seek out simpler, less risky investments like interest-bearing bank accounts, insurance prod ucts, and real estate. Investing in One Lesson By giving up on the stock market, investors miss out on some of the greatest opportunities to profit in the financial world. Investing in One Lesson 14 INVESTING IN ONE LESSON Does it surprise you that stockbrokers often have a better year than their customers? That floor traders on the New York Stock Exchange beat the market? That managers of mutual funds do better in their indi vidual portfolios? That real estate brokers are often the most successful investors in the property business? That coin dealers usually make more money in trading coins than you do in investing in them? Or that com pany officers profit the most from a stock's initial public offering? That's because investing is their business and they usually understand that the normal rules of other kinds of business don't always apply to it. Investing in One Lesson And yet, Miramar's market capitalization is $1 billion, and its stock shot up 50 percent in the past six months. Investing in One Lesson Four A PECULIAR INSTITUTION 'Corporation treasurers sleep soundly while stockholders walk the floor' BEN GRAHAM 'The stock market and the economy are two different things.' Investing in One Lesson S&P 500 TOTAL RETURN AND REAL GOP, 1990-2007 A Peculiar institution 23 As you see from the graph, the stock market and the economy tend to move together over the long run, but there can be periods lasting years when the stock market outperforms real GDP growth, as well as times when it underperforms. Investing in One Lesson For example, in the 1920s, real GDP increased at a 4 percent annualized rate, while the stock market index grew at a 20 percent rate-until 1929 and the subsequent bear market during the Great Depression. Investing in One Lesson Similarly, in the 1990s, real GDP grew at a 4 percent rate, while the stock market increased at an average rate of 20 percent. Investing in One Lesson By March 2000, at the height of the bull market, the value of stocks trading on the New York Stock Exchange exceeded 190 per cent of America's GDP. Investing in One Lesson During this time, Warren Buffett correctly warned that the U.S. market was vastly overvalued. Investing in One Lesson Then, as a bear market developed during the first years of the twenty-first century, stocks failed to keep up with the econ omy's annualized GDP growth rate of 3 percent. Investing in One Lesson MARKET' 'It is the emotional, nonprofessional investor who sends the price of a stock up or down in sharp, sporadic, and more or less short-lived spurts. Investing in One Lesson Market' 33 A private company that does not trade on the stock exchange is highly illiquid and is not usually subject to 'auction fever.' Investing in One Lesson Only a minority of shareholders buy or sell stock each day, but it is conceivable that a day might come when there are thousands of sellers and few buyers, pre cipitating a stock market crash. Investing in One Lesson Market' 35 ket capitalization-the total number of shares multiplied by the share price-of a publicly traded company is unreal and unsustainable. Investing in One Lesson Can the market bear this sudden increase in sales? Not likely. Investing in One Lesson The real question investors must always ask is: What is the outlook for a given stock over the next few months or years? For fundamentalists, this includes the all-important question: What is the outlook for sales and earnings over the next quar ter or year? In a sense, then, investing in the stock market is nothing more than a bet on the future, which is full of surprises. Investing in One Lesson Market' 39 affairs can have a major impact on investor decisions. Investing in One Lesson The sudden fall of the Berlin Wall in late 1989 precip itated a sharp rise in the German stock market. Investing in One Lesson Market' 43 upgrade or downgrade may move a stock, sometimes dramatically. Investing in One Lesson Market' 45 $39. Investing in One Lesson Market' 47 investing in a business. Investing in One Lesson The stock options market in particular has become a main focus of this gambling mentality. Investing in One Lesson As an active participant in the economy's capital stock, the stock market is used to finance new technology, production processes, and construction. Investing in One Lesson For example, com puterized sell programs can push a stock down as much as 20 percent 60 INVESTING IN ONE LESSON in short order until buyers enter the market and give it 'support.' Investing in One Lesson Consequently, the stock market is not always efficient, and the public can overvalue or under value certain investments. Investing in One Lesson The Contrarians 79 According to various accounts, Kennedy stayed in the market until late 1928, when he sold most of his RKO 'A' shares and options, net ting several million dollars. Investing in One Lesson Kennedy decided not to reinvest as the market rose in 1929, but rather to stay in cash. Investing in One Lesson 'Then and there, so ran his recollection, he decided that a market anyone could play, and a shoeshine boy could predict, was no market for him,' wrote biographer Richard Whalen. Investing in One Lesson Euphoria 80 INVESTING IN ONE LESSON Fear and euphoria represent the two rare extremes, while caution and confidence are the moderate states that usually characterize the market. Investing in One Lesson gg INVESTING IN ONE LESSON Jeremy Siegel's work indicates that dividend-weighted index funds beat market cap indexes by 300 basis points each year. Investing in One Lesson 90 INVESTING IN ONE LESSON Seldom do you find a high-flying stock that has a large market capital ization and pays a healthy dividend. Investing in One Lesson The 2000-03 bear market forced corporations to rethink this view, and dividend yields are now climbing again. Investing in One Lesson Between 2001 and 2006, firms in the Australian stock market (as measured by the MSCI Australia Index EWA) collectively grew earnings at a compounded annual rate of 19.1 Investing in One Lesson Needless to say, brokers and security analysts reacted negatively to these initial studies, arguing that many individual investors and profes sional money managers, including Warren Buffett and Peter Lynch, 98 INVESTING IN ONE LESSON have beaten the market for many years. Investing in One Lesson Efficient market proponents respond by noting that math ematically, only a minority can beat the market each year; it is impossi ble for everyone to beat the market because, as noted earlier, everyone is the market. Investing in One Lesson While admitting that a few superior investors beat the market for many years, efficient market advocates suggest that even their remarkable returns may be due more to luck than brilliant investing. Investing in One Lesson In reality, the bond business is quite different from the stock market. Investing in One Lesson It is possible to make money-and a great deal of money-in the stock market. Investing in One Lesson The P/E ratio is equal to a stock's market capitalization divided by its after-tax earnings over a twelve-month period, usually the trailing period but occasionally the current or forward period. Investing in One Lesson See also contrarians Barnes & Noble, 23 Barron's, 56 Baruch, Bernard, 46, 76, 141 Batra, Ravi, 61 bear markets, 3, 53, 61, 68-69,81,90,94,123 166
Beating the Dow (Michael O'Higgins and John Downs), 105 Beating the Street (Peter Lynch), 72 behavioral economics, 65-66, 163 Berkshire Hathaway, 129 Bernhard, Arnold, 17, 31, 81, 123 Biddle, Nicholas, 127 'Big Blue' (International Business Machines), 71-72 'Big Oil' (Standard Oil or ExxonMobil), 71-72 Bogle, John, 145 bonds, 100, 127-34 'book' valuation, 31-32 Borders, 23 Brandywine Realty Trust (BRT), 108 brokers, 120-21, 143 Browne, Harry, 12, 115, 123-24 bubbles, 23, 40, 63, 69, 77, 90 Buffett, Warren, 18, 23, 54, 95,97,128-30,145 Building Wealth One House at a Time (John Schaub), 138 bull markets, 23, 26, 53, 68, 80-81,90,122 burning match, 27, 92 business development compa nies (BDCs), 101, 106-7, 115 business fundamentals, 41, 141-43 Business Week, 49 buy/sell recommendations, 42-43,76,97,123-24, 133-34,142 buybacks, 98-99 C call options, 112-14 Canadian Oil & Gas Trusts, 110 capital market, 53-54 capital, raising, 23-25 cap-weighted stocks, 68-69 cash dividends, 87-100 caution, 79-80 Charter Mac (CHC), 108 CEO departures/hirings, 46 chartists (see also technical analysis), 43, 56-64 Chrysler, 67-68 Cisco Systems, 25, 92, 93 Citigroup, 66, 99 Clason, George, 119 Coca-Cola, 66, 104 Colgate-Palmolive, 104 commodity stocks, 101, 109-12, 115 Index index Common Stocks and Uncom diversified portfolios, 52, 101-3,115-16,122-25, mon Profits (Philip Fisher), 144 49,86 competition, 43 dividend growth stocks, 100, confidence, 79-80 103-5 conservative investors, 116, Dividend Leaders Fund 143-44 (FDL), 105 consumption, 53-54 dividend-paying stocks, 91-92, contrarians, 75-83, 105. Investing in One Lesson See 100,102-4,116,127, also bargain hunters 143-45 corporate bonds, 100, 127, dividends: arguments against, 131-32 91-92; benefits of, 87-100, courses, 143 143-45; capture strategy, Cramer, Jim, 145 113-14; efficient market crashes. Investing in One Lesson ISBN 978-0-470-52038-3 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 To Wendy, who has bailed me out of more than a few jams Contents Foreword xiii Acknowledgments xvii Introduction Bailout Nation 1 PART I A BRIEF HISTORY OF BAILOUTS 7 Chapter 1 A Brief History of Bailouts 9 Chapter 2 The Creation of the Federal Reserve, and Its Role in Creating Our Bailout Nation 13 Chapter 3 Pre-Bailout Nation (1860-1942) 21 Chapter 4 Industrial-Era Bailouts (1971-1995) 33 Intermezzo A Pattern Emerges 45 PART II THE MODERN ERA OF BAILOUTS 51 Chapter 5 Stock Market Bailouts (1987-1995) 53 Chapter 6 The Irrational Exuberance Era (1996-1999) 63 ix x CONTENTS Chapter 7 The Tech Wreck (2000-2003) 75 Chapter 8 The Backwards, Rate-Driven Economy 89 Intermezzo A Brief History of Finance and Credit 101 Chapter 9 The Mad Scramble for Yield 105 PART III MARKE T FAILURE 117 Chapter 10 The Machinery of Subprime 119 Intermezzo A Memo Found in the Street: Uncle Sam the Enahler 130 Chapter 11 Radical Deregulation, Nonfeasance 133 Chapter 12 Strange Connections, Unintended Consequences 149 Chapter 13 Moral Hazard: Why Bailouts Cause Future Problems 161 PART IV BAILOUT NATION 173 Chapter 14 2008: Suicide by Democracy 175 Chapter 15 The Fall of Bear Stearns 185 Chapter 16 Dot-Com Penis Envy 195 Chapter 17 Year of the Bailout, Part I: The Notorious AIG 203 Chapter 18 The Year of the Bailout, Part 11: Too Big to Succeed? 211 Intermezzo Idiots Fiddle While Rome Burns 226 PART V POST-BAILOUT NATION 229 Chapter 19 Casting Blame 231 Contents Chapter 20 Misplaced Fault 251 Chapter 21 The Virtues of Foreclosure 263 Chapter 22 Casino Capitalism 273 Postscript Advice to a New President 287 Notes 297 Index 315 Foreword D o you find yourself wondering: How did we get here? Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Since March 2008, so many dif ferent financial bailouts have been funded directly by the Fed-into investment banks, government-sponsored enterprises (GSEs), brokerage firms, money market funds, even the overall stock market-that we could not discuss bailouts intelligently and avoid mentioning the Fed. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy In A Nation of Counterfeiters, Stephen Mihm writes: By the 1850s, with so many entities commissioning banknotes of their own design (and in denominations, sizes, and colors of their own choosing), the money supply became a great confluence of more than 10,000 different kinds of paper that continually changed hands, baffled the uninitiated, and fluctuated in value according to the whims of the market. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy This is a cycle that repeats over and over in the system of free market capitalism. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy (Continued) Year Act or Program Acronym Enacted Significance Securities Exchange SEC 1934 Regulated the stock market and Act/Securities and restricted margin buying. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy As Industrial-Era Bailouts (1971-1995) 39 smaller, less expensive and more fuel-efficient cars from Japan and Europe gained increasing market share in 1970s, Chrysler found itself in an ever deepening hole. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Part II THE MODERN ERA OF BAILOUTS Chapter 5 Stock Market Bailouts (1987-1995) The essential Greenspan legacy ... Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Stock Market Bailouts (1987-1995) 55 The actual crash is a fascinating part of stock market history. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Those of you who wish to become serious students of the market must famil iarize yourself with what occurred. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Stock Market Bailouts (1987-1995) 57 istory teaches us that the development of Bailout Nation, Wall Street edition, was not done in secret meetings. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy But the truth is enough people believed Greenspan's Fed 58 BAILOUT NATION Stock Market Bailouts (1987-1995) 59 would approve such an intervention that it helped restore confidence in the markets. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 60 BAILOUT NATION Stock Market Bailouts (1987-1995) 61 Nobel laureate Paul Krugman, writing presciently in U.S. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The combination of a hot equity market and the new innovation called portfolio insurance combined with the messy New York Stock Exchange (NYSE) plumbing to create an unusually short-lived, market-driven event in an otherwise robust economy. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Each time, the market would cheer, rallying to new heights. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 86 BAILOUT NATION one year after the market peaked, and half a year prior to the terror attacks. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The Federal Open Market Committee (FOMC) had watched Japan get caught in a decade-long recession, compounded by a nasty case of deflation. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 98 BAILOUT NATION ownership of stocks is widespread-studies put market participation at near 50 percent of all Americans-the typical family has a rather small percentage of their net worth in equities. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The 1990s bull market in stocks created plenty of paper wealth, and that too soon found its way into the real estate market. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Once rates fell after the 2000 tech-stock crash, however, the real estate market exploded: Prices nearly doubled from 10 years earlier, and total units sold went from under four million in 1995 to over seven million houses in 2005 (see Figure 9.1). Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Part III MARKET FAILURE Chapter 10 The Machinery of Subprime The superior man understands what is right; the inferior man understands what will sell. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Blood in the Water on Wall Street, a 1997 book warning about the danger of derivatives. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy In 2000, referring to CFMA, he noted: The new bill's second impact, in the swaps market, is less direct but still worrisome. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy fostering constructive innovation that is both responsive to market demand and beneficial to consumers, 11 146 BAILOUT NATION There was a reason why some people in the past had been denied credit: They simply could not afford the homes they tried to purchase. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy According to Bloomberg, Berkshire Hathaway offered to buy preferred shares that would pay a dividend of 9 percent and could be converted to common at the then market price of $40.30. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy (Such negatives were outweighed by the risk of] serious distortions to market prices had Long-Term [Capital Management] been pushed suddenly into bankruptcy. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy When one considers the astonishing parallels between that past crisis and the current one, the 164 BAILOUT NATION missed opportunity for a 'dose of [market] discipline' is all the more regrettable. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Just as the stock market was topping before the 1929 crash, the National City Bank of New York (as it was known then) had become the largest commercial bank in the world.' Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 220 BAILOUT NATION A nd so September 2008 ended with the stock market in hasty retreat. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The already weak stock market plummeted on September 29, 2008, when the House of Representatives rejected the $700 billion bank bailout. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The following week (ending October 10) was the worst in the market's history. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy `The United States believes the greatest contribution we can make to world prosperity is the continued advocacy of the magic of the market place, 'Reagan told a U.N. audience'' in 1986. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 'Cox's long-standing 242 BAILOUT NATION support o£ a deregulated market and friendliness to business made him the wrong SEC chairman at the wrong time.' Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy But in the market's infinite wisdom, it determined that credit wasn't such a significant problem after all. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy That they got cut in half over the next year makes one wonder why anyone would call the stock market prescient. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 2'70 BAILOUT NATION The real estate market would be much better off if policy makers recognized three things: 1. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Falling prices help return the housing market to normalcy. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy This plan would allow housing market prices to normalize, keep those loans that are savable from going The Virtues of Foreclosure 271 into default, and avoid moral hazard. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Miller Tabak's market strategist, Peter Boockvar, notes that the debate over nationalization is now mere wordplay: 278 BAILOUT NATION The raging debate over whether to nationalize Citigroup and/or Bank of America is semantics at this point. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Index



AAA rating, 109, 111-113, 115, 155, 204, bailout money to, 224-225, 227, 207,246-247,256,279 274-275,280-281 ABCP Money Market Fund Liquidity failure of, 6, 12, 49, 137, 141, 178, 181, Facility (AMLF), 181 192-193,211,273,278-279 Acceleration phase, prototypical bailout, 47 Financial Products (FP) division Accounting: (AIGFP), 204-206 baud/scandals, 151, 258 incentive programs, 200 rules, 195 rescue of, 176, 203-210 Actuarial tables, 204, 279 TARP rescue, 176 Adhocracy, 178 Ameriquest, 256 Adjustable rate mortgages (ABMs), 120, Amtrak, 37 125-126,128-129,146,243 Analysts, functions of, 214-215, 246 After-inflation, 95 Annual growth rate, 18 Agdern, Bob, 294 Antitrust legislation, 212 Agnew, Spiro, 35 AOL, 196 Agricultural Adjustment Act (AAA), 30 Apologies, 48 Agricultural industry, 29 Apple, 196, 220 Allison, Herbert, 201 Application fraud, 123 Alt-A mortgages, 187, 208, 257-258 Appraisal(s): Alternative energy industries, 23, 291-292 fraud, 122-123 Altucher, James, 292 importance o£, 132 Ambac, 141, 155-156 Appraisers: American Home Mortgage, 255 blame/responsibility of, 232 American International Group (AIG): roles of, 32 315 316 INDEX Arbitrage, 68-69, 165 Argent, 255 Asian contagion/Asian flu, 68-70, 87 Asset management companies (AMCs), 276 Asset management theory, 107 Asset prices: falling, 55, 66 focus on, 58, 60, 64-65 protection strategies, 84 Assets, toxic, 216, 224, 274 Atkins, Paul, 158 Auctions, 224 Auto-correction mechanisms, 4 Automobile industry, 10-11, 23, 26, 38, 41-42. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy See also specific banks Bank for International Settlement (BIS), 114 Bank holding companies, 147 Banking industry: during Great Depression, 27 historical perspectives, 15-17 loans to, 32 regulation of, 17, 119 TARP, 12, 17 5 -176, 178 Banking regulators, 238-239 Banking sector, 223, 264 Banknotes, 16-17 Bank of America (BoA): bailout money to, 223-224, 227, 274 failure of, 6, 12, 145, 176, 178, 200-201, 218-222,273,281 Merrill Lynch acquisition, 203-204 Bank of England, 19 Bank of New York Mellon, 222 Bank runs, 17, 29, 80 Bankruptcy: economic impact of, 200, 208, 290 largest in U.S. history, see Lehman Brothers protection strategies, 277 rate of, 31-32 reorganization, 40-41 Barclays, 191, 219, 281 Bargain hunters, 83 Bear market, 246 Bear Stearns: failure of 6, 12, 15, 72, 132, 136-137, 141,144,151,153-154,176-177, 185-193,195,204,206-207,211, 232,249,252-253,255-256,273 lessons from, 192-193 senior management compensation, 199 'Bear Stearns rule,' 144 Berkshire Hathaway, 154-155 Bernanke, Ben, 5, 16, 32, 93, 129, 147-148,177,179-180,190,203, 208-209,216,219,232,234-235, 296 Bethlehem Steel, 25 Bildt, Carl, 275 Bipartisanship, 260 Black Monday, 54-56 Index 317 Blame for economic conditions: misplaced, 251-261 targets for, 226, 231-249 Blankfein, Lloyd, 200 Blinder, Alan S., 138 Bloomberg, Michael, 296 Blow-off tops, 81-82 Blue chips: corporate bonds, 109 stocks, 61-62 Boards of directors, 199 Bond fund management, 106-109 Bondholders, 275, 277 Bond insurance, 156 Bond market, 17, 71, 107, 112 Bond-rating agencies, 246 Bonds, types of, 29, 32, 71, 109, 111, 156, 178, 186, 204, 275 Bond traders, 65 Bonuses, see Incentive programs with bailout money, 223, 275 stock options, 197 Boockvar, Peter, 277-278, 295 Boom-and-bust cycles, 17, 19, 23. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy See also specific industries /sectors Boom/bust economy, 295 Boom, bust, panic, and renewal cycle, 18 Born, Brooksley 237 Borrowers, blame/responsibility of, 123, 243-244 Borrowing to invest, 98-99 Boskin Commission, 132, 151-154 Bretton Woods agreement, 36 Brodsky, Paul, 295-296 Broker-dealer, naked shorts, 253 Brokerage firms, 14, 32 Browning, E. S., 162 'Bubble vision,' 80 Buffett, Warren, 154-155, 191, 193, 214, 247 Bull market, 76, 81, 83, 108, 196, 246 Bundled mortgages, 239 Bush, George Sr., 152 Bush, George W, 14, 135, 140, 138, 176, 179,221-222,232,236-238,240. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy See also Rating agencies Credit Suisse, 193, 241 Creswell, Julie, 215 Crisis psychology, 55-56 Crony capitalism, 198-199, 201, 227 Crude o0 prices 82, 151 Currencies: counterfeiting, 17 fiat, 14, 56 historical perspectives, 16-17 Mexican peso crisis, 64, 87 Thai baht, 68-70, 87 U.S. dollar, see U.S. dollar Currency crisis, 67 Daniels, Seth, 295 Danske, 281 Dash, Eric, 215 Davis, Ned, 292 Day trading, 77-78 Debt, see specific types of debt long-term, 215 non-investment grade, 111 securitized, 109 Debt-to-net-capital ratio, 132 Debtor in possession (DIP) financing, 277 Decision-making process: market-based, 179-183, 249 taxpayer subsidies and, 281 Default: on foreign debt, 210 on mortgage loans, 270-271 securitization process, 146 on subprime mortgages, 120-122, 129 swaps, 141. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy See CEOs/executives Exotic derivatives, 109-110, 156 Exotic loans, 125 Exotic mortgages, 28, 90, 239 Expected returns, 107, 109 Expenditures, big budget government, 3 Expensive money, 94 Fair Housing Act of 1968, 254 Falco, Armando, 260 Fannie Mae, 64, 49, 113, 130, 132, 176-177, 180, 182, 193, 201, 203, 209, 225, 227, 234, 245, 251, 254, 257-261 Farrell, Vince, 296 FDIC-mandated prepackages/workouts, 276-277 Federal debt, 36 Federal Deposit Insurance Corporation (FDIC): bailout costs, 180-181 conservatorship, 239 Continental Illinois bailout, 212, 218 guarantees, 26, 136, 181, 222, 228 Public-Private Investment Program (PPIP), 224 receiverships, 6, 221-222 roles of, 29-30, 254, 290 Federal Emergency Relief Act (FERA), 30 Federal funds rate, 55, 62, 72, 85, 87-88, 93-94,105,131,154 Federal Home Loan Bank Board, 27 Federal Housing Administration, 182 Federal Open Market Committee (FOMC), 15, 54, 59, 64, 96, 105, 234 Federal Reserve Bank of Boston, 18 Federal Reserve Board, 256 Index 321 Federal Reserve System: authority of, 14-16, 131 bailout costs, 180-181 blame/responsibility of, 232, 235, 238 cash reserve, 80 central banking operations, 53-54 creation of, 10 evolution of, 14 historical bailouts, 12, 32 inflation measurement, 153 interest rate cuts, 59, 61-62, 64, 78, 85-88, 153 leadership, see Bernanke, Ben; Greenspan, Alan; Volcker, Paul public attitude toward, 61 purpose of, 54 registration of, 14 rescue plans, 151-154 response to market crash of 1987, 55-61, 66 roles of, 13-19, 53, 145, 186, 254 stock market interventions, 53 Federal Savings and Loan Insurance Corporation (FSLIC), 214 Fees, rating agencies, 112 Fiat currency, 14, 56 FICO score, 125-126 Fiduciary responsibility, 244 Financial bubble, 78 Financial democracy, 21 Financial engineering, 99, 156, 166 Financial Guaranty Insurance Company (FGIC), 141 Financial leadership, 14 Financial sector, 227 Financial Services Modernization Act, 131 First American CoreLogic, 265 First Bank of the United States, 16 First Franklin Financial, 240 First-time home buyers, 129, 269 Fishman, Alan, 201 Fitch Ratings, 111, 232 Fixed-income securities, 71, 111 Fixed-income traders/trades, 65, 71, 107 Fixed-rate mortgage loan, 26, 125, 146 Fixing Housing & Finance: 30/20/10 Proposal,' 270 Flipping, 28, 267 Floor specialists, 55 Food prices, inflation and, 151-152 Ford Motor Company, 41, 44, 165 Foreclosure: ARMS and, 129 crisis, 255 in 1929, 24, 26-29 prevention strategies, 263-271 rate of, 24, 26-29, 103, 216, 248 Foreign investors, in U.S. treasuries, 98, 210 Frank, Barney, 180, 260 Fraud: identification strategies, 287-288 real estate-related, 122-123 Freddie Mac, 6, 49, 113, 130, 132, 176-177,180, 182, 193, 201, 203, 209,227,234,251,254,259-261 Free market system, 2, 5, 10, 23, 84, 134, 145, 227, 234, 238, 247, 249 Free money, 205 Frew, Scott, 290 Friedman, Thomas, 157-158 Fuld, Richard/Dick, 154-155, 187, 191, 200,208 Full employment, 15 Fund management. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy See Hedge funds; Money market funds; Mutual funds Futures exchanges, 140 Geithner, Timothy, 179, 220-221, 224-225,274,279,296 Gene therapy research, 23 General Electric, 181 General Motors (GM), 6, 41, 44, 49, 165, 178,225 GI Bill, 133-134, 289-290 Gilleran, James, 146 Gingrich, Newt, 260 Glaeser, Edward L., 252 Glass-Steagall Act, 30, 135, 137, 212-214, 235, 237, 244 Global credit/financial meltdown, 245 Global Crossing, 196 322 INDEX Global economy, 210, 227 Global fund management, 115 Global liquidity, 162 Going naked, 253 Gold prices, 95 Gold standard, 36, 296 Goldman Sachs, failure of, 6, 132, 144-145,155,191,199-200,204, 220, 222, 232, 281 Goldman Sachs Group Inc., 280 Gongol, Brian, 291-292 Goodman, Peter, 138 Google, 220 Godman, Paul, 37 Gott, Marc, 259 Government-funded Chapter 11, 277 Government guaranteed loans, 40, 44, 294 Government intervention: historical perspectives, 10-11 impact of, 4-5 systemic risk, 5 Government policy, 251 Government regulation, 238 Government-sponsored enterprises (GSEs), 14,113-114,177,180-181,234, 257-258,260 Granrlich, Ed, 102, 132, 147, 234 Gramm, Phil, 139-140, 232, 235-236 Gramm, Wendy, Dr., 139-140 Gramm-Leach-Bliley Act, 135, 137, 213, 235,237-238 Great Depression: characteristics of, 11, 185 compared with current economy, 23-32 housing finance system, 27 Great Depression era, 11 Greed, 4, 199, 209 Greenberg, Alan 'Ace,' 190,199 Greenberg, Hank, 204 Greenspan, Alan, 5, 36, 54, 56, 58-62, 64-67,72-73,75,78-79,84-88, 96, 102, 105, 115, 130, 132, 138, 145-147, 151, 153, 162, 226, 232-234,236-237,247 Greenspan put, 67-68, 72 Gross, Dan, 255 Gross domestic product (GDP), 6, 28, 91, 94-97,138,265,292-293 Guaranteed investment contracts, 280 Guff states, 227 Gulf War 11, cost of, 3 Haefling, Carl, 294 Haughton, Daniel, 35 Hedge funds, 4, 47, 67, 98, 114-115, 131, 136, 165, 185, 187, 227, 233, 249, 278,288 Helicopter Ben. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy See also Mortgage loans Home Mortgage Disclosure Act of 1975, 254 Home Owner's Act of 1933 (HOLA), 27, 29 Home Owner's Loan Corporation (HOLC), 27-29 Home ownership, 96, 98 Homeowner Affordability and Stability Plan, 182 Honda, 39 Hoover, Herbert, 29 Hope for Homeowners, 182 House of Representatives, bank bailout rejection, 220 Index 323 House Oversight Committee, 246 Housing cycle, 90 Housing market: bailout in 2008, 12 boom, 87, 95, 107 boom and bust cycle, 65, 89-90, 102, 113, 115, 214, 255 bubble, 122, 226, 267 collapse in, 6, 49, 61, 236, 288 crisis in, 239, 257, 264-265 debacle, 135 during Great Depression, 26-28 property taxes, 26 stabilization strategies, 288, 292, 294 Housing prices, 97, 151, 207, 264-270, 278 HSBC, 281 Iceland, 19 Ideological idiocy, 227 Illinois Central Railroad, 22 Immigration, as economic recovery strategy, 288-289 Incentive programs: how they work, 200-201 impact of, 4, 196-197, 209 stock options, 196 Incompetence, 191, 193, 226, 247, 288 Industrial capacity, 26 Industrial-era bailouts (1971-1995): Chrysler Corporation, 38-44, 156-157 Lockheed Aircraft Corporation, 34-35, 37-38,40,156-157 Penn Central Railroad, 37-38 Industrial expansion, economic impact of, 22-23 IndyMac, 146, 196, 228, 239 Inflation: ex-inflation, 153 historical perspectives, 16 influential factors, 54, 65, 80, 93-94, 98, 106,151-153,159 Inflationary pressure, 62 InfoSpace, 196 Initial public offerings (IPOs), 63, 77, 135, 196,199 Insolvency, 27, 253, 290 Institutional investors, blame/responsibility of, 46-47, 233, 247-248 Intel, 83, 196 'Interested party' agitation, 46 Interest rate risk, 146 Interest rates: cuts in, 59, 61-62, 64, 66, 72, 78, 85-88, 93, 115, 151, 153 European banks, 19 historical policies, 12 housing boom and, 113 housing crisis and, 264 impact of, 53 increase in, 78, 102 maintenance of, 14 mortgage loans, 90, 113, 268 risk management and, 114 ultralow, 90, 268 Interest-only mortgage loan, 126, 128, 239 Internal Revenue Service (IRS), 223 International investors, 167-168 Internet companies, 10, 23 Investment banks, 14, 47, 73, 98, 136, 158, 163, 167, 188, 198, 214, 256 Investment-grade ratings, 111 Investor(s): confidence, 56, 84, 216 psychology, 56 Investor Village, 196 Iraq, invasion o£, 3, 245 Irrational exuberance era, 63-74, 130 Japan: as bailout lender, 210, 227 deflation in, 96 Jefferson, Thomas, 15-16 Joint ventures, 204 Jonung, Laa, 276-277 JPMorgan Chase: acquisition of Washington Mutual, 201, 204, 222, 277 Bear Stearns takeover, 186, 189-190, 193, 200, 219 loan processing software, 126-127 performance of, 6, 12, 15, 141, 167, 177, 201, 222 Junk bonds, 111, 204 324 INDEX Kass, Doug, 242, 288-289 Kelleher, Cohn, 200 Kohlberg Kravis Roberts & Co., 136, 189 Korean War, cost of, 3 Kroszner, Randall S., 256 Krugman, Paul, 61 Kuwait, invasion of, 87 Labor unions: economic impact of, 42 United Auto Workers (UAW), 42-43, 156-157,164 Lang, Richard, 294 Layoffs, 278 Lazard Freres, 136 Leadership, lack of, 179 Legislation: Agricultural Adjustment Act (AAA), 30 Commodity Futures Modernization Act (CFMA), 131, 137-141, 235, 237, 279 Communications Act of 1934, 150 Digital Millennium Copyright Act, 244 Emergency Economic Stabilization Act, 32 Emergency Loan Guarantee Act, 35 Equal Credit Opportunity Act of 1974, 254 Fair Housing Act of 1968, 254 Federal Emergency Relief Act (FERA), 30 Financial Services Modernization Act, 131 Glass-Steagall Act, 30, 135, 138, 212-214,235,237,244 Grarmn-Leach-Bliley Act, 135. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy See also Lockheed Aircraft Corporation 326 INDEX Minor ownership, 274 Mismanagement, economic impact of, 34-35 'Mission creep,' 56 Modern finance, 5 Moffett, David, 201 Moglia, Joe, 296 Momentum, 83 Momeny Market Investor Funding Facility (MMIFF), 181 M1 money supply, currency components, 80-81 Monetary policy, 15, 62, 64, 232, 295 Monetary system, historical, 17 Money flow, 18-19 Money management, 106 Money market funds, 14, 157, 204 Money supply, 18, 36, 80-81, 90, 98 Monolines, 155-156 Montier, James, 178 Moody's Investor Service, 111-112, 158, 206-207,232,246-247 Moral hazard, 4, 47, 58, 67, 73-74, 84, 161-171,193,271 Morgan Stanley, 6, 132, t44, 185, 200, 204, 222, 232, 281 Morgenson, Gretchen, 205 Morse, Samuel E B., 22 Mortgage-backed bonds, 186 Mortgage-backed securities (MBSs), 12 109-110, 112-114, 124, 181, 206, 215, 224, 246, 278 Mortgage Bankers Association (MBA), 128, 146-147 Mortgage brokers: blame/responsibility of, 232 roles of, 23, 120, 123, 125, 129, 243 Mortgage equity withdrawals (MEWS), 95-97,263 Mortgage fraud, 123, 146 Mortgage interest deduction, 251-252 Mortgage loan: approval for, 102 default on, see Foreclosure documentation requirements, 125 historical perspectives, 26-27 refinancing, 27-28, 126, 129, 294 repackaged, 102, 109, 276-277 types of, 120, 125-126, 128-129, 146, 239, 243, 255 Mortgage originators. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 196 Pickard, Lee A., 144 Piggyback loam, 126 PIMCO, 187 Pitt, Harvey, 240-241 Plain vanilla loans, 259 Plunge Protection Team (PPT), 57 328 INDEX Political philosophy, impact of, 61, 208. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy See also Madoff, Bernie Poole, William, 234 Portfolio insurance, 54, 67 Posen, Adam S., 275 Post-bailout nation: blame, 231-249 casino capitalism, 273-281 foreclosure virtues, 263-271 misplaced fault, 251-261 Preannouncement season, 83 Pre-bailout nation, 1860-1942, 21-32 Predatory borrowing, 123 Predatory lending, 123-125, 147, 234, 240 Preferred equity, 222 Preferred stock, 191 President's Working Group (PWG) on Financial Markets, 56-58, 87 Press releases, market impact of, 167 Price, generally: competition, 23 housing, see Housing prices spreads, 69, 71 stability, 15 Price-earnings (P/E) ratio, 78, 81 Price-to-rent ratio, 265-266 Primary Dealer and Others (PDCF), 181 Prince, Chuck, 24, 214 Private banks, development of, 16-17 Private capital, 208 Private equity, 102 Private partnerships, 72 Private sector, 95 Private trusts, 4 Privatized gain, 3 Profitability, 94, 196 Profit margin, 197 Profit motive, 4, 256, 258 Property taxes, 26 Proxmire, William, 35 Psychological impact, 55-56, 100. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The question was whether the Soviet Union had anything to learn from an embrace of export driven market reforms. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President On the other hand, I'm inclined to think that if you buy the argument that economic change and progress in the Soviet Union requires and will only occur with fundamen tal political change as well, less central control, greater freedom for individual citizens, more elements of a market economy in volved and a less onerous hold on eastern Europe, then I think you could conclude that in fact his success would be a benefit to the United States. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President The state had deregulated its whole sale energy market five years earlier but continued to regulate retail energy. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President One of the reasons all but the most well-financed entrepreneurs remain mostly local phenomena-even Kerry Packer, the richest man in Australia, and one of Murdoch's primary competitors, stays 2o I MICHAEL WOLFF in Australia-is that part of the skill you need as an entrepreneur is knowing your own turf and market. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Man Who Owns the News 15 7 Murdoch, to many of them, is that most modern rough beast, an amoral technocrat, a market vulgarian, a destroyer of virtue. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Her son Donald is a low-key and methodical steward who carefully developed the company's interests in the education market; its Kaplan unit, which offers preparation for standardized tests and mail-order degrees, is now the company's main profit driver. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Man Who Owns the News I 16 5 The family's race against the clock-to declare its desire before the bid was leaked and the market is able to declare its desire-was hampered by their inability to appreciate several overriding busi ness factors: While the family controls the voting shares, in a public com pany such control is not absolute. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 178 I MICHAEL WOLFF Although Murdoch is frustrated by the U.S. newspaper market, he continues to pursue it obsessively. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch He buys his father's old company, the Herald and Weekly Times, which, with his own holdings, gives him almost 60 percent of the newspaper market in Australia. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch That is, between The Man Who Owns the News 1 195 David Faber's first report of the offer at noon and the close of the market, Dow Jones has had a profound turnover in its shareholder base. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Judith's market value took a direct hit. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch It is pretty easy, in the 60 percent of the market he controls in Australia, at his dominant papers and broadcast outlets in the United Kingdom, at the Post and at Fox News in the United States, to feel a sense of relief that you've made it to a safe harbor. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The pages' editor-now Paul Gigot-is invariably the linear descendant of William Peter Hamilton, that steadfast, aggressive, absolute believer in market virtue. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch (The Dow Theory is his: 'Beneath the fluctuations in individual stocks there was pres ent at all times a trend of the market as a whole.' The Man Who Owns the News: Inside the Secret World of Rupert Murdoch And too: 'The market represents everything everybody knows, hopes, believes, anticipates.') The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The free market ought to rule, in other words. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch But, too, the free market should rule in favor of the strongest people in the free market. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch It's a kind of meeting of the minds that you wouldn't necessarily, or easily, find in Manhattan in the late seventies: two free-market, anti-regulatory, self-styled libertarians. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 276 I MICHAEL WOLFF Stelzerism and Murdochism are all about the defense of the free market, of Israel, of American clout. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch It's his free market and he'll make the rules for it. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch
TAXING DIVIDENDS ALTHOUGH THE THEORY that a cut in dividend taxes would boost the stock market was somewhat dubious-as was the idea that a boost in the stock market would stimulate economic growth-the idea o£ eliminat ing the double taxation of dividends was well grounded in principle. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy This also made free trade easier to sell politically, since it looked as if we were getting something in return for giving something to foreigners by open ing our market to them. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy Although Bush had promised to move toward a more market- 91 92 IMPOSTOR oriented agriculture policy during the 2000 campaign, he made no effort to implement such a policy as the farm bill moved through Congress. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy In short, Enron was simply doing what most large businesses do appealing to free markets when it was in its interest do so and throwing the free market overboard in a heartbeat when it would profit from sub- LIB IMPOSTOR sidies, regulation, or other government aid. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy When the bond market rose on October 28, ana lysts credited this factor. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy I had no idea who Buffet was, and accepted the $500 gift as if it were hugely generous-ignorant of the fact that he had made billions in the market. Radical Son: A Journet Through Our Times HIGH SOCIETY 159 fell below that market share before the ink was dry on the settlement they signed. High Society 97 244 INDEX Black-market cigarettes, tobacco industry, European Union and, 152-153 Blacks. High Society See European Union Europe, consequences of drug decriminalization in, 130-131 European Commission, tobacco industry, black-market cigarettes and, 152-153 European Parliament, 170 Evangelical Christians, Corrections Corporation and, 88 Eviction-only policy, drugs, public housing and, 114 Excise taxes, on beer, wine, and hard liquor, 147 Expulsion from school, student drug use and, 44, 45 Faith community, countering substance abuse and addiction and, 173-174 Family, substance abuse and addiction and fracturing of, 6, 105-107,117 250 INDEX Family court systems, substance abuse and,107-111 Family dinners, teen substance abuse prevention and, 176-177 Farley, Chris, 4 FBI, 100,104 Federal budget, 104 Federal Bureau of Narcotics, 20 Federal Trade Commission, 15, 60 FedEx Field (Washington), 56 Females, substance abuse field and, 135. High Society There is a lite 30 WHAT AMERICANS REALLY WANT_REALLY I CAN SEE CLEARLY NOW 31 version of almost every food on the market. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears Rather than focusing exclusively on whether your pay scale is competitive with the market, set out to ensure the life style you offer is appealing to the kind of employees you hope to at tract. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears Miller (2001, 246) defines globalization as 'the process by which national political boundaries are eroded in such a way that people's life chances everywhere increasingly depend on the workings of a global market over which states have little control.' Social Justice: Theories, Issues, and Movements Among these is the demobilization and disempowerment of workers in deference to the 174 consumer market. Social Justice: Theories, Issues, and Movements This change has been slow, as suggested by Senser (1989), and moving toward a free market capitalism. Social Justice: Theories, Issues, and Movements 123 OBAMA'S CHALLENGE That's why I've proposed investing $150 billion over the next ten years in the green energy sector. Obama's Challenge In warning about the economic crisis that confronts the next president, I have chosen to emphasize sound environmental policies that are also good economic-recovery policies. Obama's Challenge He'll be the first person to label something 'racial,' to call someone a racist, even over next to nothing at all, but he still has time to hang out at the gym, discuss dating options with his best CILA[ITER Peter Piper Picked Peppers, but Humpty Dumpty Got Pushed The Productively Paranoid Stylings o f Hip-hop's Spirituality

W hen I was growing up in Brooklyn, New York, in the 1970s and 1980s, most of the young people who lived in the Bayview Houses (the housing project complex I called home for the bulk of my childhood) spent their weekends watching Saturday afternoon kung fu movies on television, flicking clay- or wax-filled bottle caps across concrete sidewalks in 'skelly' games, and listening to Mr. Magic or DJ Red Alert late at night on the radio. Racial Paranoia My next book project is an extended ethnographic study of this fasci nating and thriving transnational African American community based in southern Israel. Racial Paranoia Los Angeles Times political reporter Robert Shogan (2001:171) reported that Richard N. Bond, a former Republican Party national chairman, said that GOP attacks on the news media were designed to be like coaches yelling at umpires, 'in the hope, as Bond put it, that `maybe the ref will cut you a little slack on the next one.'' The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 At that time, a cousin of George W Bush, the Republican nominee, working as a vote counter at Fox News, declared 146 CHAPTER 4 that the Republicans had taken that crucial state, the state containing the electoral votes that would decide the next president. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 CHAPTER 5 'NOBODY DOES IT BETTER'? The Networks versus Other Campaign News Sources A fter every presidential election, the television networks promise to do better next time. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 broadcast ing industry is also not likely to be pressured in any meaningful way by lawmakers who want to stay in the good graces of television station own ers from whom they will buy advertising time and from whom they will desire favorable news coverage of their next campaign (West and Loomis 1999). The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 To appropriate another Marxist metaphor, 208 however, without substantive improvement from its performance in re cent presidential elections, the broadcast network model that dominated election news in the latter half' of the last century may simply wittier away in the next one. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 Some intolerant people make remarks that are hurtful to women who have made the difficult, deeply 56 Next, the artificially inseminated single mother let a post office worker have it for being confused when she gave 'none' as the father's name: 'The clerk at the crowded post office couldn't fathom it. Guilty: Liberal 'Victims' and their Assault on America For his next story, I recommend: Yes, the child is mine-but she looks nothing like me. Guilty: Liberal 'Victims' and their Assault on America 180 ANN COULTER How about a sock to their yaps? In numerous photos of the melee, the screaming shrews can be seen with arms flailing and mouths agape while able-bodied men stand right next to them doing nothing. Guilty: Liberal 'Victims' and their Assault on America I have worked very hard to be sure that he would not be elected as our next president. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me Edith Wilson responded the next day. 1920: The Year of the Six Presidents The next day, twelve days after Hoover's first plea, Roosevelt responded, blandly alibiing that a secretary had lost Hoover's 435 1920 - DAVID PIETRUSZA original missive and protesting that nothing could be done anyway ('frankly I doubt if anything short of a fairly general withdrawal of deposits can be prevented now'). 1920: The Year of the Six Presidents If you want to impress your friends, drop this double dose of economics jargon at your next dinner party: 'Of course if the Fed is able to keep the unemployment rate near NAIRU they should be able to achieve their OLIR.' Ben Bernanke's Fed: The Federal Reserve After Greenspan
Consensus forecasts Jun 2007 Sep 2007 Dec 2007 GDP growth (next four quarters) 2.8% Ben Bernanke's Fed: The Federal Reserve After Greenspan
THE WINTER OF OUR DISCONTENT A hot topic on weekend business shows in the spring of 2008 was whether the next president will reappoint Bernanke as Fed chairman when his four-year term expires in 2010. Ben Bernanke's Fed: The Federal Reserve After Greenspan Next steps should include: (1) formally announcing a target-using euphemistic language such as 'mandate-consistent' or 'a price 206 CONCLUSION stability understanding' rather than the politically incorrect 'tar get'; and (2) improving the quarterly forecast by having each mem ber make consistent assumptions for monetary policy-probably assuming the funds rate follows what is priced into the markets. Ben Bernanke's Fed: The Federal Reserve After Greenspan In many cases, a Palestinian cannot work, travel, study, tend crops, transport goods, dig for water, start a business, obtain medical care-or even visit relatives in the next town-without obtaining the appropriate permission from the Israeli authorities. Palestine Inside Out: An Everyday Occupation Two soldiers were inside and another was standing on the road next to the jeep. Palestine Inside Out: An Everyday Occupation And Palestinian babies in the occupied ter Palestine Inside Out ritories are never granted the same rights as Jewish babies born in settle ments on or next to their land (a Jewish child born in the West Bank, but in a Jewish settlement, is classified as an Israeli citizen by virtue of being Jewish, is entered on Israel's population registry, and is ultimately issued an Israeli, not a West Bank, identity card). Palestine Inside Out: An Everyday Occupation He punches me a few more times before moving on to his next target, before I can respond. Palestine Inside Out: An Everyday Occupation We remain in constant fear of the Israeli tanks that pass along the road and sometimes stand next to the house for hours. Palestine Inside Out: An Everyday Occupation As early as 11 January 1948, Joseph Weitz, the Jewish National Fund executive and a tireless advocate of transfer, asked, 'is not now the time to be rid of them? Why continue to keep in our midst these thorns at a time when they pose a danger to us?' The next month he said, 'It is possible that now is the time to implement our original plan: to transfer them.' Palestine Inside Out: An Everyday Occupation But 'what happened in Haifa can happen in other parts of the country if we will hold out,' he noted in his journal; 'it may be that in the next six or eight months of the campaign, there will be great changes in the country, and not all to our detriment. Palestine Inside Out: An Everyday Occupation The next morning, August I I, 1921, he staggered into the bathroom to shave before collapsing on the bed. The Defining Moment: FDR's Hundred Days and the Triumph of Hope , The next day's front-page story in the Times was quite different in tone than the one less than two months before. The Defining Moment: FDR's Hundred Days and the Triumph of Hope The next morning, several Hoover aides gath ered on the South Lawn to play medicine ball and confidently predict that the country would never elect a cripple as president. The Defining Moment: FDR's Hundred Days and the Triumph of Hope I want to tell you what has been done in the last few days, why it was done, and what the next steps are going to be. The Defining Moment: FDR's Hundred Days and the Triumph of Hope 'Jonathan, look, I'm on the make here now': Daniels, COHP 'by next autumn I will be ready to chase': FDR quoted in Ward, First Class Temperament, 670 'I am very much disheartened': Ibid, 675 - 356 NOTES Details of Anna Roosevelt's wedding: Curtis Dall, FDR: My Exploited Fa ther-in-law, 17, ior. The Defining Moment: FDR's Hundred Days and the Triumph of Hope 'As my church has grown;' he writes, 'so has frequency of cell phone interruptions and families 51 sneaking out early under cover of the dark movie theater environment'' Many churches have become like supermarkets or gas stations: totally depersonalized arenas where most people no longer feel a responsibility to be hospitable to the person standing next to them. Quitting Church: Why the Faithful are Fleeing and What to Do about It Cedar Ridge Community Church, founded in 1982 by Brian McLaren, is nestled next to cornfields in bucolic Maryland. Quitting Church: Why the Faithful are Fleeing and What to Do about It I had jumped on a plane for Baton Rouge the afternoon before so I could show up at the rose-carpeted Family Worship Center the next morning to cover it for the Houston Chronicle. Quitting Church: Why the Faithful are Fleeing and What to Do about It The result was a ragged stitch job that in one breath attacked 'economic royalists' (a High contribution) and in the next waxed about giving government 'the vibrant personal character that is the very embodiment of human charity ,, WHITE HOUSE GHOSTS As he had four years earlier, FDR hid the fact of other hands in the speech. White House Ghosts: Presidents and Their Speechwriters WHITE HOUSE GHOSTS every major FDR speech over the next five years would be written by some combination of Rosenman, Hopkins, and Sherwood-usually all three. White House Ghosts: Presidents and Their Speechwriters 'Next week Biddle is going down to Mexico to make a speech,' Roosevelt said. White House Ghosts: Presidents and Their Speechwriters Deciding to draft the rail workers into the armed forces, he called a cabinet meeting for the next WHITE HOUSE GHOSTS day, Friday, May 24. White House Ghosts: Presidents and Their Speechwriters The next day, the two men revised the draft as Steelman continued negotiations with the labor leaders at the Statler Hotel. White House Ghosts: Presidents and Their Speechwriters Strauss and I say we won't be out of the trenches by Christmas, or the next Christmas or the next one, but let's try to make a start and see what happens. White House Ghosts: Presidents and Their Speechwriters The word clicked for Goodwin, and at the next stop he called Karl Meyer, a Washington Post editorial writer and friend who had Latin American expertise, to make sure alianza did not have any inappropriate alternative mean ings (as would,' for example, 'liaison'). White House Ghosts: Presidents and Their Speechwriters 'But the next step is up to him.' White House Ghosts: Presidents and Their Speechwriters The situation was evolving quickly: During a break in meetings the WHITE HOUSE GHOSTS next day, Tuesday, August 6, Ford told Hartmann to start thinking about what he should say at a swearing-in-nothing fancy, that was not his style. White House Ghosts: Presidents and Their Speechwriters When a sentence ran from one card onto the next, he would complete it in block letters on the first card. White House Ghosts: Presidents and Their Speechwriters In the margin next to this paragraph, Bush had written: 'Too ego.' White House Ghosts: Presidents and Their Speechwriters It ran next to a 746-word stoxy headlined: 'Bush Hails `Power of Free Enter- WHITE HOUSE GHOSTS prise.'' White House Ghosts: Presidents and Their Speechwriters WHITE HOUSE GHOSTS Harold Ickes called Baer at home early the next morning and told him to come into the office. White House Ghosts: Presidents and Their Speechwriters (Robert Pear, °Clinton Backs Off His Pledge to Cut the Deficit in Half,' Nem York Timer, January 7, 199, :y WHITE HOUSE GHOSTS next few weeks. White House Ghosts: Presidents and Their Speechwriters 'There are going to be thousands and thousands of funerals: in this country over the next week,' McConnell said to Frum. White House Ghosts: Presidents and Their Speechwriters
Gerson drove in before dawn the next morning. White House Ghosts: Presidents and Their Speechwriters The next day the press published a bombshell about Lenin's collaboration with 32 the Germans and blamed the Bolsheviks for reverses in the war. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Everything went like clockwork mainly because there was next to no resistance. Lenin, Stalin, and Hitler: The Age of Social Catastrophe The next day the building was surrounded by armed troops, and no one was permitted to enter. Lenin, Stalin, and Hitler: The Age of Social Catastrophe The next morning there was another meeting involving Scheubner-Richter, Hermann Goring, and Hermann Kriebel, the Combat League's military leader, likely also Rudolf Hess and Ernst Rohm. Lenin, Stalin, and Hitler: The Age of Social Catastrophe The most prominent Nazi fatality was Scheubner-Richter, struck by a bullet as he marched arm in arm next to Hitler. Lenin, Stalin, and Hitler: The Age of Social Catastrophe LENIN'S PASSING, STALIN'S VICTORY 159 A final showdown between Stalin and Trotsky occurred on Octo ber 23, 1927, at a meeting to prepare the next Party congress. Lenin, Stalin, and Hitler: The Age of Social Catastrophe The number of prisoners increased from around 30,000 in 1930 to 179,000 the next year. Lenin, Stalin, and Hitler: The Age of Social Catastrophe On January I, 1933, there were 334,300 prisoners, and the next year there were 510,307. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Grigory Zinoviev is on the right, and Karl Radek on the far left, next to whom is Nikolai Bukharin. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Hindenburg and his advisers, led by his son Oskar and General NAZISM EXPLOITS ECONOMIC DISTRESS 205 von Schleicher, grew weary of Briming,whose resignation was demanded on May 29, 1932, and given the next day. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Instead, early the next day he prevailed on President Hindenburg to declare a state of emer gency and had new measures ready for the cabinet. Lenin, Stalin, and Hitler: The Age of Social Catastrophe In 352 LENIN, STALIN, AND HITLER a communication to Walther von Brauchitsch, commander in chief of the army, on March 25, he said the issue would be solved when political conditions were right; Poland 'ought to be beaten down, so that it will not need to be taken into account as a political factor for the next decades.'' Lenin, Stalin, and Hitler: The Age of Social Catastrophe Stalin said the pact was 'helping Germany,' but next time the USSR might support the other side. Lenin, Stalin, and Hitler: The Age of Social Catastrophe 24 HITLER AND WESTERN EUROPE A lways one to be on to the next target, Hitler called a conference on September 27, 1939, the day Warsaw surrendered, to demand the immediate preparation of plans for an attack on France. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Again there was a coincidence with the British who on April 7 began to embark troops for the occupation of Norway and the next day began mining the waters around Narvik. Lenin, Stalin, and Hitler: The Age of Social Catastrophe We knew very well that we were the next country Hitler planned to turn his army against . Lenin, Stalin, and Hitler: The Age of Social Catastrophe ' 4 ' The next day Stalin informed them they were going to Kuibyshev and that he would leave himself in twenty-four hours. Lenin, Stalin, and Hitler: The Age of Social Catastrophe 3 ` SOVIETS HOLD ON, HITLER GROWS VICIOUS 507 Over the next month or so, Army Group B managed to take only 150 miles; this was no 'lightning war' but a sign of things to come. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Soviet bombardment began on January 12, and over the next several END OF THE THIRD REICH 565 days the attack picked up. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Remember your friends are not there, there is the next of kin of the killers and oppressors.' Lenin, Stalin, and Hitler: The Age of Social Catastrophe He called Zhukov and ordered him to Berlin for the ceremony the next day to represent the Supreme Command of the Soviet forces, along with the appointed leaders of the Supreme Command of the Allied forces. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Powell presented himself as the practical man of affairs, taking the world as he found it, focused on the here and now, intent on getting organized for the next day's set of meetings on whatever crisis was at hand. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism For the next two years-until the estimable Joyce Rumsfeld pulled the reins in on her husband-I met with the Secretary, the Deputy, or my staff at the Pentagon every weekend, often on both days. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism The next day, July 27, Rums feld signed it out to Rice, Powell, and Cheney. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Weighing Ameri ca's vulnerabilities against Saddam's record of aggression, he decided that it would be too dangerous to allow Saddam to choose the time and place of his next war with us. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism 470 'Inside the State Department and in some offices in the White House,' the Times article continued, 'the decision to create the stabilization group has been interpreted as a direct effort to diminish the authority of the Pen tagon and Mr. Rumsfeld in the next phase of the occupation.' War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism
rki q L Pa r j OSE HOLD Dadsaamaaby O a BM Y~wTSam $ FORN MW EO 129511 SE LO Wo mg Paper a I Closing Tbouehts Two problems coming down the mad sm the following: - Iran will almost certainly have a nuclear weapon sometime within the next five years, and that will change the balance in the region notably. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism The next day, they arrived. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... For the next century and a half, they and their descendants and disciples after them embarked on a series of military conquests in the region, culminating in the establish ment of the Kingdom of Saudi Arabia in 1932.* Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... I 186 11 INSIDE THE REVOLUTION the middle of the next decade, a timetable essentially unchanged from previous estimates. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... It was also Bremer who over the course of the next twelve months helped the IGC make a series of essential decisions-from cre ating cabinet positions and filling them with the right people to laying the groundwork for an Iraqi parliament, an Iraqi constitution, and the country's first truly free and fair elections. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... We visited a 388 880 II INSIDE THE REVOLUTION variety of churches, including the famous 'garbage church' in the caves above Cairo, located right next to the biggest 'city' of trash and waste products I have ever seen in my life. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... After explaining why he had given his life to Christ, he died the 400 11 INSIDE THE REVOLUTION next day. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... The next day, he quit the Iraqi oil 448 // INSIDE THE REVOLUTION company he was working for and committed himself to serving the Lord full-time, making disciples and training church leaders. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... Cited by Daniel Byman, 'Should Hezbollah Be Next?' Foreign Affairs, November/December 2003, http://www.f)rcignaffairs. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... org/20031101faessay82606/daniel byman/should-hezbollah-be-next. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... Murrow once said, 'Just because your voice reaches halfway around the world doesn't mean you are wiser than when it reached only to the end of the bar' Think about that, Keith, the next time you go on one of your wild and crazy harangues against conservatives. A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media I'm always thinking about the next chap ter or the next sentence or the next word. A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media To begin with, such transactions were done in informal open-air markets, on the Warmoesstraat or next to the Oude Kerk. The Ascent of Money: A Financial History of the World On `Black Monday' (z8 October) it plunged by 13 per cent; the next day by a further iz per cent. The Ascent of Money: A Financial History of the World The next wave of bank failures, between February and August 1931, saw commercial bank deposits fall by $z.7 The Ascent of Money: A Financial History of the World That was more or less what happened to Rivera's next commission - to decorate the walls of New York's Rockefeller Center for John D. Rockefeller Jr. - after the artist insisted on including a portrait of Lenin as well as Communist slogans like `Down With Imperialistic Wars!', `Workers Unite!' and, most shocking of all, `Free Money!' These were to be carried by demonstrators marching down Wall Street itself. The Ascent of Money: A Financial History of the World The next day London and New York felt compelled to follow suit. The Ascent of Money: A Financial History of the World Thus, for the next quarter cen tury, did governments resolve the so-called `trilemma', according to which a country can choose any two out of three policy options: .1. The Ascent of Money: A Financial History of the World At peak it reached 45 per cent, which implied that the indices would move 3 per cent each day for the next five years.' The Ascent of Money: A Financial History of the World
Dan, the Victim Next Door Dan was my closest neighbor and by default my occasional friend. In the Event of My Untimely Demise Nothing else interested me, and film school seemed the first logical 139 In the Event of My Untimely Demise step in chasing the dream of being the next Spielberg-an ambition shared by most of the classmates I found myself with during freshman year. In the Event of My Untimely Demise One moment Doug is your friend, the next moment 149 In the Event of My Untimely Demise Doug throws your crayons in the sewer and makes fun of your middle name. In the Event of My Untimely Demise If you have a map of the tectonic plates and know the terrain, as Billy Davis Jr. did, you know where you are, you know where the next story is coming from, and you can separate what is useful from what is mere bombast and entertainment. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country She waved as the party faithful set up a thunderous cheer and an announcer said: 'The next vice president of the United States, the Honorable Geraldine Ferrarol' 24 THE THIRTEEN AMERICAN ARGUMENTS More cheers-and more tears in the Texas delegation. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country She returned the next day, bandaged, battered, but conscious enough to promise he was never going to be allowed to return.With The Pursuit of Happyness The atmosphere was surreal enough with all the weeping and wailing, but to see Momma, real and in front of me, yet beyond my reach, 72 was enough to put me in a grave next to Uncle Henry. The Pursuit of Happyness It's what he says next that starts my rage. The Pursuit of Happyness This is his explanation when I wake up the next day. The Pursuit of Happyness The good news was that for the next couple of years I served, worked, learned, and lived in an environment that was not too dif 130 Chris Gardner ferent from a college setting.While The Pursuit of Happyness But finally I began to look in earnest for whatever that next job was going to be. The Pursuit of Happyness Making matters worse, I learn next that besides the possibility of battery charges, I am definitely being charged with owing $1,200 of unpaid parking tickets. The Pursuit of Happyness In shock, I look around at the pit bulls sitting next to me on the bus. The Pursuit of Happyness I began to think fu turistically, as if I had already passed the test as I weighed what would happen next. The Pursuit of Happyness 230 Chris Gardner Jackie showed up with Christopher, giving me at least that night at the rooming house before being thrown out the next dayThat also gave me the weekend to find us a place to stay and a day care situ ation starting on Monday. The Pursuit of Happyness To 250 Chris Gardner remember this time, from these days on I made it a point of trying to get back to Glide for Easter Sunday each and every year-no matter how far away or busy I was-not to relive the painful mem ories of where I'd been before but to celebrate the miracles that happened next. The Pursuit of Happyness 262 Chris Gardner identify which of my strengths were going to help take me to the next level. The Pursuit of Happyness My next move, whatever it was going to be, was to double that, at least.With The Pursuit of Happyness But what I am offered is the ideal structure-guaranteed six months 274 of drawing five grand per month, with a requirement for the next six months to make twice that for the company, in order to main tain it, with a So percent commission on every dollar earned over and above that. The Pursuit of Happyness But at the end of the day, which took place in early 1987 when things re ally started to roll, I was doing so much business that no one ques tioned my decision to take the next leap and set up shop under my own auspices. The Pursuit of Happyness A reporter next to me jotted down in her notes: One thing not = exploiter The moment past, Batton smiled and took the next ques tion. The Great Derangement: A Terrifying True Story of War, Politics, and Religion It's actually a two-day course: a two hour Friday-night jaunt and a six-hour haul the next morning. The Great Derangement: A Terrifying True Story of War, Politics, and Religion DERANGEMENT DISCOVER THE DIFFERENCE ary first, and then the next January first youd do the very same sermon.' The Great Derangement: A Terrifying True Story of War, Politics, and Religion Specifically, after enough desperation and misery and corporate self-abnegation, and picking up the phone late at night to listen to fellow Christians wish openly that they can pray their way out of next week's bills, and drinking cheap pow dered presweetened iced tea out of plastic cups in squalid strip mall chain restaurants with self-flagellating, past-middle-aged . The Great Derangement: A Terrifying True Story of War, Politics, and Religion Does this sound like the work of a group of people plan ning the 'next Pearl Harbor'? Or was this laborious outlining of the decades-long two-stage process just a clever cover story, designed to throw readers off the trail of the senselessly candid 214 admission about a 'new Pearl Harbor' made two sentences pre viously? Any way you look at this, it's lunacy. The Great Derangement: A Terrifying True Story of War, Politics, and Religion Meanwhile Mark motioned for the next person in line, a 271 272 quietish student from the University of Houston, to offer his idea. The Great Derangement: A Terrifying True Story of War, Politics, and Religion By now they've found me a desk next to a tired-looking young guy who works for the Giants Web site. The Great Derangement: A Terrifying True Story of War, Politics, and Religion 54 • GREENSPAN's BUBBLES
offered by Fed governor Alice Rivlin: 'Now, we can wait until our next meeting, but that would involve a long wait. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve If you decide to raise interest rates next week, that's fine. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve Remember the monster moves of that era? Here's 74 ° GREENSPAN'S BUBBLES
a snapshot of that day-Liberate Technology up about $34, a mere 50 percent move; Next Level Communica tions up $31, about a 150 percent move; and iBasis Tech nology, up $24, a 150+ percent gain. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve Next he discussed what he believed to be an important cause of the economic weakness at that time: The retrenchment in capital spending over the past year and a half was central to the sharp slowing we experienced in overall activity. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve Greenspan did muddy the waters on this subject a bit by telling Congress in June 1999 that 'it is the job of economic policy makers to mit igate the fallout when it occurs, and, hopefully, ease the transition to the next expansion.' Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve So 186 • GREENSPAN'S BUBBLES The Consequences of the Loss of Fear a 187 had the Chairman himself, when he specifically sug gested to homeowners that they take out adjustable-rate mortgages in 2004, just months before the Fed was set to raise interest rates 17 times over the next two years. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve At no point did Dr. King-who was once photographed in a bookstore waiting calmly for a physician while the knife of a maniac was stick ing straight out of his chest-even hint that those who injured and reviled him were to be threatened with any revenge or punishment, in this world or the next, save the consequences of their own brute selfishness and stupidity. God Is Not Great: How Religion Poisons Everything 238 GOD IS NOT GREAT But if ethical principle had been the guide, the Vatican would not have had to spend the next fifty years vainly trying to account for, or apologize for, its contemptible passivity and inaction. God Is Not Great: How Religion Poisons Everything Over the next few years of the Maccabean 'revolt,' many more assimilated Jews were slain, or forcibly circumcised, or both, and the women who had flirted with the new Hellenic dispensation suf fered even worse. God Is Not Great: How Religion Poisons Everything He looked it up in the library the next day and memorized it at once. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow Blagojevich 45 Pay to Play got Nixon's autograph and had a picture taken with him-it shows a grinning Blagojevich in a pair of running shorts standing next to the disgraced former president. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow He jokingly offered his analysis of the race by showing a reporter his Christmas list-with a question mark next to Rod's name. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow




79 6

The Race for Governor

WITH ONH of his favorite Elvis Presley CDs in the disk player and his always-present black oval hairbrush in the glove compartment, the candidate was upbeat as his SUV headed for the next campaign stop. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow Pay to Play Pay-to-Play on Steroids senator he had purchased a piece of land next door to his new house in Chicago's Hyde Park neighborhood-a lot owned by Tony Rezko's wife. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow At one point he de clared flatly that he did 'not want to be governor for the 173 next two years.' Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow In January 1994, Yusuf barely escaped from Philippine police in Manila but was captured the next month in Pakistan in an operation led by Pakistani security officers. Marching Toward Hell: America and Islam After Iraq In any event, the next day Ambassador Albright delivered an excellent briefing to the assembled UN grandees and received virtually no pushback from anyone. Marching Toward Hell: America and Islam After Iraq Currently, for example, Afghan jihad veterans lead several antigovernment political military groups in Thailand, and in Bangladesh five or more Afghan veter ans will run as candidates when the next parliamentary election occurs.' Marching Toward Hell: America and Islam After Iraq While never losing sight of potential nation-state threats, Washing 185 MARCHING TOWARD HELL ton must act to ensure that it has enough appropriately armed and trained U.S. ground forces to avoid defeat;in the next Islamist insurgency that America confronts. Marching Toward Hell: America and Islam After Iraq What on earth do we have to be afraid of if we change foreign policies that are pal pable failures and detrimental to U.S. security? Foreigners will think we are weak? Our allies will doubt our constancy? Domestic lobbies will retal iate in the next election? Churchill would never surrender? So what. Marching Toward Hell: America and Islam After Iraq Each moved sharply lower over the next seven years, and the DJIA went flat. Investing in One Lesson Each bailout has 12 BAILOUT NATION had negative consequences, and the repercussions have often led to the next bailout. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The Machinery of Subprime 127 Try these steps next time you use Zippy! Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy There may be anywhere from another one to four million more foreclosures in the next few years. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The Bush administration was in the midst of a far-reaching shake-up, and news reports indicated that Secretary of the Treasury John Snow would be the next to leave. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Steiger, who had met Cheney several times during his tenure with Governor Knowles, agreed to hire Cheney to spend the next six months in his Capitol Hill office. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President The secretary was calling to ask Cheney to meet Rumsfeld's flight at Dulles Airport in suburban Washington at one o'clock the next afternoon. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President The discussion was, at this point, hypotheti cal, so the two men agreed to speak again the next day after Rums feld's meeting with Ford. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President The ability to get next to the world's worst-we needed to lie down with fleas some times. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Sununu told him to call the next morning if he wanted to be considered. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President CHAPTER TWELVE
Secure, Undisclosed
ick Cheney began the morning of September 12 with a question that would define a new era in American life: when is the next attack? Cheney: The Untold Story of America's Most Powerful and Controversial Vice President He was consumed-some would say obsessed-with preventing the next attack. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President He agreed to clarify his remarks in his next speech. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President My next stroke was that Leela was extremely pregnant and looking for a job with more flexible hours for after her baby's birth. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch My next was that before the Post, Leela had been a reporter at the Herald Sun, Murdoch's paper in Melbourne, where she grew up. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The next time he's in New York, Billy drives out to Princeton, where he and Steginsky, over a bottle of wine, sketch out the family structure and Billy gives a little brain dump about who is who, as well as who within the three branches of the family might, and might not, be approachable. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The next day, Billy and his wife come over to Steginsky's hotel, near the Piazza del Popolo, and over more wine take a look at the Bancroft family chart that 56 I MICHAEL WOLFF Andy's worked up, pointing out what's wrong with it, what should be added to it, and, most importantly, giving Andy phone numbers. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch It's perhaps too much wine, because the next day Billy is back trying to get assurances that Andy won't be calling Bancroft family members willy-nilly-at least not on Billy's say so. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch At fifteen, while working for the Daily Mirror in Sydney, he The Man Who Owns the News I 103 was famously snapped sleeping during a press conference, and the photo appeared in the rival Sydney Morning Herald the next day. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Having unanimously approved the deal, a let ter was forthwith delivered to Peter McPherson, who will the next day, April 18, assume the chairmanship of the board of Dow Jones. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Man Who Owns the News 1 1 75 What Murdoch gets is a business that over the next twenty-five years or so will never make him any money-and which may cost him as much as a billion dollars. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch For instance, blotto during the 2004 Super Bowl, Allan failed to appreciate the importance (even the tabloid importance) of Janet Jackson's notorious public breast baring-and the next day's head line was about Super Bowl advertisements. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch executive in London sits next to Murdoch at a dinner and, boldly, brings up the subject of Rebekah Wade, whose 214 I MICHAEL WOLFF continuing rise in the company is confounding to other more dis ciplined players. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch (When he does, his hosts are apt to worry about whom to seat him next to.) The Man Who Owns the News: Inside the Secret World of Rupert Murdoch In that back seat, next to Uncle Bill, I attempted CPR on her, but sadly, it was too late and she had taken her last breath. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch So we lined up and he happened to be drawn next to me, or maybe I got Harry to put him next to me. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Anyway, we were next to each other. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The next thing is try and imagine that you're shooting slightly in front of the birds.' The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 'Cutting Taxes Will Be Harder the Next Time.' Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy Scheer's instinct proved prescient once again when this became the Left's political style in the next decade. Radical Son: A Journet Through Our Times 326 • Private Investigations Next, we wrote the history of a black gang in south-central Los Angeles. Radical Son: A Journet Through Our Times In the next Congress, let a colony be taken by lot from twelve only, omitting that colony from which the president was taken in the former Congress, and so proceeding on till the whole thirteen shall have had their proper rotation. Glenn Beck's Common Sense: The Case Against an Out-of-Control Government, Inspired by Thomas Paine Woodrow Wilson and the Roots of Modern Liberalism American Intellectual Culture Series Editors: Jean Bethke Elshtain, University of Chicago; Ted V. McAllister, Pepperdine University; and Wilfred M. McClay, University of Tennessee at Chattanooga When All the Gods Trembled: Darwinism, Scopes, and American Intellectuals by Paul K. Conkin Hetemphobia: Sexual Harassment and the Future of Feminism by Daphne Patai Postmodernism Rightly Understood: The Return to Realism in American Thought by Peter Augustine Lawler A Requiem for the American Village by Paul K. Conkin A Pragmatist's Progress? Richard Rorty and American Intellectual History edited by John Pettegrew The Next Religious Establishment by Eldon J. Eisenach A World Made Safe for Differences: Cold War Intellectuals and the Politics of Identity by Christopher Shannon Ralph Waldo Emerson: The Making of a Democratic Intellectual by Peter S. Field Intellectuals and the American Presidency: Philosophers, Jesters, or Technicians? Woodrow Wilson and the Roots of Modern Liberalism The historical view, in general, rejected the possibility of transcending the historical environment in order to grasp uni versal political principles; instead, politics had to be guided by the spirit of the current historical age, and political change was to be grounded in evolu tion from one historical spirit to the next. Woodrow Wilson and the Roots of Modern Liberalism Each of these sides will be treated in the next two chapters: chapter 7 will address the extent to which the influence of public opinion is weakened by the ceding of significant gov erning authority to an unelected bureaucracy; the current chapter will address the politics side of the divide, posing the question of how democratic Wilson's political vision actually is. Woodrow Wilson and the Roots of Modern Liberalism The next day, perhaps, he meets the farmers of the country side upon the hustings, and the style is changed. Woodrow Wilson and the Roots of Modern Liberalism If a foreign enemy attacks the United States during the CULTURE OF CORRUPTION
Harvard-Yale game any time over the next four years, we're screwed. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies CHAPTER 2
BITTER HALF FIRST CRONY MICHELLE OBAMA





W hoopi Goldberg was giddy with laughter in June 2008 as she introduced 'our very special guest co-host, who actu ally could be the next first lady of the United States of America, Michelle Obama!' Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies as our next first lady, Michelle Obama, is bringing a new sense of style to the White House. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Next, Coren raised $6,532 for Carrion from forty-three donors: 'Asked about the purpose of fund-raising for Carrion just before he reviewed the project, Coren replied, `None, other than, to be 150 perfectly honest with you, at that time I became aware of his cam paign. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Announcing Geithner's nomination as Treasury Secretary on November 24, 2009, President Obama hailed the genius civil ser vant as uniquely qualified: 'With stellar performances and out standing results at every stage of his career, Tim has earned the confidence and respect of business, financial and community lead ers; members of Congress; and political leaders around the world-and I know he will do so once again as America's next 175 176 Treasury Secretary, the chief economic spokesman for my Admin istration.'' Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies But why not treat a teen arrested for marijuana use much the same way we treat someone arrested for drunk driving when no injury occurs? Why not use the arrest as an opportunity and require kids cited for marijuana possession to be screened psychologically and referred for help if appropriate, and to attend sessions to learn about the dangers of marijuana use and how to decline the next time they are offered a joint? The incentive to be screened and attend such classes would be the threat of the alternative: for the first couple of arrests, loss of a driver's 126 license or a fine stiff enough to sting that has to be paid by the teen or worked off; for continued use, intensive treatment, including random testing and staying clean to avoid jail time. High Society Today, it's 'job security'-the knowledge that next week, next month, and next year you'll still be collecting that paycheck. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears We are grateful that Steve jobs allowed us to combine all aspects of our lives into a single portable gadget, and we admire Warren Buf fett for financing the next great technological breakthrough. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears But a significant portion came to stay and help write history's next chapter. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears We sat the kids down in a separate room on the top floor of the build ing with high-speed Internet connections and gave them a list of three movies that had come out the night before and two movies that were to 194 WHAT AMERICANS REALLY WANT_REALLY LIVING AT THE SPEED OF LIFE 195 be released in the next thirty days. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears Those that have organized themselves in keeping with the goals of justice have succeeded if not in every one of their goals then at least in the development of activists that will carry on the next struggle. Social Justice: Theories, Issues, and Movements 12 BLACK THBOLOCY AND BLACK POWER If, perchance, a man believes in God, and views this world as merely a pilgrimage to another world, he is likely to regard suffering as a necessity for entrance to the next world. 'The whites think we're just playing politics to carry New York,' he told Kennedy's aide Ted Sorensen, 'The Negroes [are] suspicious that we're just doing what we got to do.' Obama's Challenge Carter replaced him with Paul Volcker, then the president of the Federal Reserve Bank of New York, an inflation hawk. Obama's Challenge Meanwhile, the Emancipation Proclamation was denounced by Democratic governors throughout the North outside abolitionist New England. Obama's Challenge Chairman Frank was trying I to rally his committee and the Congress to the idea that a new generation of financial regulations was required to prevent repe tition of a new generation of abuses. Obama's Challenge For the more complex reform projects of the new administra tion-restoring a secure financial system; revising trade priori ties; expanding the supply of good jobs; devising a path to secure ORAMA'S CHALLENGE renewable energy; moving toward universal health insurance-it makes sense for the new administration to take some months to plan, and then to build support in the country. Obama's Challenge Obama's administration will need to sort which practices must OBAMA'S CHALLENGE be prohibited outright as inherently prone to abuse, and which should be subject to exactly what sort of tighter regulation, and by which new or old government agencies. Obama's Challenge 163 OBAMA'S CHALLENGE REPAIRING A DAMAGED ECONOMY The promise of more reliable energy through new technology appeals to America's can-do spirit. Obama's Challenge Its ten-point plan, released in its 2004 report New Energy for America, proposed to use a mix of tax credits, public subsidies, and investment to create 3.3 Obama's Challenge million new high-wage jobs in manufacturing, construction, transportation, high tech, and the public sector, while reducing dependence on foreign oil and cleaning up the environment. Obama's Challenge 193 OBAMA'S CHALLENGE The other factor that made the difference in Obama's nomina tion victory was his astonishing success in motivating voters and raising small sums of money from a huge number of new donors, using networking techniques pioneered by organizations such as MoveOn.org. Obama's Challenge 202 203 Endnotes v 'That people can be lifted' James MacGregor Bums, Leadership (New York: Harper and Row, 1978), 462. Obama's Challenge For information, address Basic Civitas, 387 Park Avenue South, New York, NY 10016-8810. Racial Paranoia RACIAL PARANOIA Real Black: Adventures in Racial Sincerity Harlemworld: Doing Race and Class in Contemporary Black America RACIAL PARANOIA The Unintended Consequences of Political Correctness The New Reality of Race in America I A Member of the Perseus Books Group Copyright © 2008 by John L. Jackson, Jr. Published by Basic Civitas, A Member of the Perseus Books Group Contents All rights reserved. Racial Paranoia Chappelle simply left the set one day, headed to a New York City airport, and took off on an impromptu flight for South Africa, depart ing on a whim and without even telling his wife and chil dren ahead of time. Racial Paranoia Did it Preface Preface xiii critique and unmask traditional blackfaced performances or merely reenergize them for a new generation? Obviously, people have very different opinions about how to answer that question, even if many of them believe that playing with blackface is always a dangerous game. Racial Paranoia RACIAL PARANOIA Introduction 3 Even if many African Americans find Farrakhan's con tention downright ridiculous, describing him as a fanatic and insisting that nobody purposefully blew up anything, many of those same dissenters would still give serious consideration to the claim that the Federal Emergency Management Agency (FEMA) dragged its institutional feet in sending aid and assistance to those citizens trapped in a flooded New Orleans almost exclusively because of race, because the bodies dangling from open windows and perched on soggy rooftops were mostly black instead of white.' Racial Paranoia This book tries to rewrite some of those old questions into new ones, far more than it can hope to fully answer: How do Americans experience this contemporary version of racism, a kind that can't safely speak its own name, a kind that must deny the accusation (even if it's secretly true)? What tools do people use to uncork traditional racism's bottled-up swagger? And why do we even need to disentangle racism from racial paranoia if we want to chart a productive fu ture? These are the issues Racial Paranoia attempts to ex plore. Racial Paranoia It is a rudimentary and imperfect recognition that spotting racism at all these days demands new ways of seeing altogether. Racial Paranoia There were vicious draft riots in Manhattan during the Civil War that turned white ethnics against darker-skinned New Yorkers. Racial Paranoia When America's founding fathers threw off the shackles of colonial 'slavery' (and its 'taxation without representa tion'), declaring themselves free and sovereign (liberated from 'foreign' tyranny by way of a new constitution), they still possessed a powerful rationale justifying their contin ued enslavement of Africans, justification as much for themselves as for anyone else. Racial Paranoia We need new ways of thinking about these issues, new ways of talking about race's subtler dynamic, and new ways of spying racial conflict in the twenty-first century. Racial Paranoia Racial paranoia has a theory about where some those 1960s wolves went: to buy some fresh wool for their new sheep costumes. Racial Paranoia Williams plas tered New York City subway trains with explicit details about the 'King Alfred Plan,' a harrowing government conspiracy 'to detain and ultimately rid America of its Ne groes.' Racial Paranoia As long-time Harlem journalist Herb Boyd points out, when most commuters came across this bit of promotional material for the Williams book, some took it for fact, not fiction-a racial version of Orson Welles's infamous 1939 RACIAL PARANOIA broadcast, his radio adaptation of H. G. Wells's fictitious War of the World, where Welles fooled at least some listen ers into believing that Martians had actually begun attack ing earth by way of New Jersey. Racial Paranoia Even without any specific discussion about the McCarran Act or the King Alfred Plan, when I was growing up in Brooklyn, New York, during the 1970s and 1980s, it was pretty common to overhear bitter accusations that housing project complexes were being purposefully designed to achieve the concentration camp effect that so concerned RACIAL PARANOIA Williams, Yette, Allen, and Chisholm. Racial Paranoia Murphy plays the ever-dashing Marcus Graham, a womanizing advertising executive who gets a taste of this own medicine when his new boss, Jacque line Broyer, played by Robin Givens, treats him the same way he is used to treating the women he dates, using him for 134 RACIAL PARANOIA Racial Paranoia's Canonical Texts 135 and thinking them up to no good. Racial Paranoia But some of the time Tyler is clearly right about things being 'racial,' like when a white salesperson dismissively eyes the three black men in a fancy New York fashion out let, clearly equating blackness with poverty or criminality 136 RACIAL PARANOIA Racial Paranoia's Canonical Texts 137 friends, and offer up witty one-liners at their expense. Racial Paranoia We also require ways of policing ourselves against our own worst tendencies, those that don't simply go away with the enactment of new laws. Racial Paranoia Nicholas Le mann, The Promised Land: The Great Black Migration and How It Changed America (New York: Vintage Books, 1992). Racial Paranoia For a more recent look at racial segregation (its causes and effects) in one West Coast city, see Camille Zu brinsky Charles, Won't You Be My Neighbor? Race, Class and Residence in Los Angeles (New York: Russell Sage Foundation, 2006). Racial Paranoia For a discussion of Nixon's role in the act (and the larger conspiratorial claims around it), see Samuel Yette, The Choice: The Issue of Black Survival in Amer ica (New York: Putnum, 1971). Racial Paranoia The idea goes back as far as Emile Durkheim's notion of 'social facts' (even to Georg Hegel and before), but one of the more recently canonized versions of the argument is found in Peter L. Berger and Thomas Luckmann, The Social Construc tion of Reality: A Treatise in the Sociology of Knowledge (New York: Anchor Books, 1967). Racial Paranoia Lanham • Boulder • New York • Toronto • Oxjard BOWMAN & LITTLEFIELD PUBLISHERS, INC. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 (Robinson and Sheehan 1983:148) In recent presidential campaigns, new polls are sometimes conducted every day to give us constant updates regarding the fortunes of each can- U.S. PRESIDENTIAL ELECTIONS 13 didate. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 In the New Hampshire primary, for example, daily tracking polls measured the horse race every twenty-lour hours during the month belore the 1992, 2000, and 2004 Granite State primary contests (Farnsworth and Lichter 1999, 2002, 2003, 20066). The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 The erroneous predictions of Clinton's fortunes by reporters during the 1992 New Hampshire primary, and again during the early days of the Clinton/Lewinsky scandal in the late 1990s, demonstrate the limits ofine dia effects on the viewing and reading audience. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 That apparent network judgment appears to be a sound one given the final poll nundrers and the primary results in New Hampshire (Farnsworth and Lichter 2003). The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 From the unofficial January 1 start of the 2000 primary season through the eve of the New Hampshire primary January 31, 2000, the network evening news shows were about as likely to feature the challengers, former senator Bill Bradley (D-NJ., The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 The television networks are all headquar tered in New York, so die television networks sometimes take a special interest in U.S. senators from New York and the neighboring states of Con necticut and New jersey. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 But it takes an extreme case ofparochialism for the three networks to pay more attention to a candidate for the U.S. Senate from New York-even a First Lady-than any candidate for president; die latter is an office far more significant than that of the junior senator from the Ern pirc State. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 [211 low do you think those ideas will be accepted in New Hampshire? Where do you predict you will end up tomorrow? The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 Brown, who eventually emerged in 1992 as the strongest challenger to the well-financed Clinton primary operation, was featured or mentioned in only seventeen network news stories during tile month before the New Hampshire primary, as compared to sixty-eight features and mentions for Clinton; thirty-nine for Sen. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 In fact, a New York Times investigation subsequently concluded that some of the absentee ballots were counted as legitimate despite having no postmark and in some cases despite having been cast after Election Day, circumstances in violation of Florida law (Barstow and Van Natta 2001). The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 (Mimokin 2001:151) In fact, Mnookin was generous in his analysis, counting only Florida, New Mexico, arid the Washington Senate race as clear mistakes. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 A comparison of the various broadcast and print sources, including PBS, the networks, New York Times, and Wall Street3ournal, analyzed in recent general elections is found in table 5.3. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 Those 589 sto ries were part of a total of 7,575 campaign news stories and editorials examined during the general election campaign from PBS, CNN, the New York Times, the Washington Post, the Christian Science Monitor, the Wall Street.7ournal, The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 New York: Longman. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 Elections: 224 RE F ERE NCES New Agendas. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 See atso specific newspapers newspapers, local: horse race vs. substantive f o cus, 167,168,169-70,171; tone of coverage, 177 Netusweek, 13 Acre, York Posy 147 New fork 'fleeces, 9, 30, 101 -2, 138; horse race vs. substantive focus, 167, 168, 169.171; The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 See also CNBC; MSNBC; television net work news ABC Nightly News: horse race vs. substantive focus, 168, 1619, 171, 172; National Council of Public Polls censure, 66, 141; tone of coverage, 176, 177,178 Nelson, Michael, 3, 29, 48, 62, 63, 144 Neunran, Russell, 151 Neustadt, Richard E., 54,112 New I Ianrpshire prinmry, 12, 20,38,46-47, 71-72; focus of media coverage, 169-70 New Mexico, 147 news hole, 164 N ew sHour(PBS),9,30,134,164-66,165, 195; campaign news coverage, amount of, 164, 170, 186-87n1; horse race vs. substantive focus, 164, 167, 168,169, 171; tone of average, 164,176, 177, 178 news media: citizens' evaluation of, 7-8,56, 104, 109,192-93; competitive environ nreat,13-14,21-22;democracy arid, 1, 189-90; presidential election missteps (2000),15,29,112,144117,149-50; transformation of environment, 22-24; trivial focus, 198. The Nightly News Nightmare: TELEVISION'S COVERAGE OF U.S. PRESIDENTIAL ELECTIONS, 1988-2004 GUILTY ALSO BY ANN COULTER

IF DEMOCRATS HAD ANY BRAINS, THEY'D BE REPUBLICANS GODLESS HOW TO TALK TO A LIBERAL (IF YOU MUST) TREASON SLANDER HIGH CRIMES AND MISDEMEANORS GUILTY LIBERAL 'VICTIMS' AND THEIR ASSAULT ON AMERICA

ANN COULTER CROWN FORUM NEW YORK Copyright © 2008 by Ann Coulter Published in the United States by Crown Forum, an imprint of the Crown Publishing Group, a division of Random House, Inc., New York. Guilty: Liberal 'Victims' and their Assault on America No matter-he had served his pur pose and New York City got its federal funding. Guilty: Liberal 'Victims' and their Assault on America Even sports columns have a political 14 ANN COULTER agenda, such as Robert Lipsyte's pompous denunciation of Cold War politics in a 1995 New York Times sports page column. Guilty: Liberal 'Victims' and their Assault on America It's good to know that the Left's new default position is: 'We always believe the cop.' Guilty: Liberal 'Victims' and their Assault on America Sailing to the New World in 1630 on the ship Arabella, the Puritans' 32 ANN COULTER leader, John Winthrop, announced that they had entered into a covenant with God to create a 'city upon a hill.' Guilty: Liberal 'Victims' and their Assault on America He quoted from, among other things, the Book of Isaiah to proclaim the new citizens' obligation to 'loose the bands of wickedness, to undo the heavy burdens, and to let the oppressed go free, and ... Guilty: Liberal 'Victims' and their Assault on America In 2004, the New York 7'irnes attacked the Bush tax cuts by quoting 50 ANN COULTER a retired coal miner from southern Illinois who complained, 'My daugh ter is a single mother,' and she didn't get a tax cut a° Admittedly, in this case, the problem may have less to do with the absence of a husband and more to do with Democrats' maddening inability to understand that you have to pay taxes in order to get a tax cut. Guilty: Liberal 'Victims' and their Assault on America While masquerading as socially conscious do-gooders speaking for society's victims, liberals created a world where there would be a constant supply of new victims in need of their 60 ANN COULTER merciful aid. Guilty: Liberal 'Victims' and their Assault on America The Swift Boat Veterans were given no time with Tim Russert, no Today show appearances, no fawning New York Times editorials or Vanity Fair hagiographies. Guilty: Liberal 'Victims' and their Assault on America 6 102 ANN COULTER 'Not Too Swift: Vets Questioning Kerry's Record Discredit Themselves' 'Slime Slung by Shameless Surrogates Sticks to Bush Gang' 'Swift Boat Veterans Wouldn't Know Truth' 'Kerry-Loathing Swift Boaters Sinking Facts' 'Swiftly Developing Smears' 'Kerry-Edwards: America's Swift Reaction to Bush Backers' Latest `Ugly' Lying Smear Campaign' 'Vietnam: Just Like the War Itself, This Story's Now a Quagmire' 'Attacks on Kerry's War Record Are Dishonorable and Distract from Real Issues' 'Vet Group Doing Bush's Dirty Work, Kerry Says: He Urges President to Condemn Ads Critical of His Record' 'Kerry Says Group Is a Front for Bush: Democrat Launches Counterattack Ad on Combat Record' 'Kerry Insists Veterans Lie, Blames Bush' 'Kerry-Edwards Campaign Debunks False Swift Boat Attacks: Sets the Record Straight with New Ad' Liberal commentator Lawrence O'Donnell offered the most hilari ous reaction to the Swiftees. Guilty: Liberal 'Victims' and their Assault on America You lied about it as long as you could until the New York Times found the wording o£ what was on the cita tion that you, as a lying writer, refused to put in your pack-of-lies book.... Guilty: Liberal 'Victims' and their Assault on America Our unsuccessful con servative writers go bad rather than suffer poverty and disrespect; their loser writers never suffer, but the rest of us suffer when they're hired by 114 ANN COULTER Newsweek, Time, the New York limes, or, if they are completely illiterate, Rolling Stone magazine. Guilty: Liberal 'Victims' and their Assault on America The resurrected, but still unsubstantiated, rumor was published in thousands of news reports during the campaign, including major front page coverage in the Baltimore Sun, USA Today, the New York Post, the New York Daily News, and the Boston Herald, and a full-page story in 160 ANN COULTER the Philadephia Daily News. Guilty: Liberal 'Victims' and their Assault on America New York University professor Mark Crispin Miller wrote in the Baltimore Sun, 'The press is obliged to pursue the story because of the way it pursued Clinton. Guilty: Liberal 'Victims' and their Assault on America Amazingly, there was so little press about Webb's anti Semitic flyer that in June 2008 he felt free to complain to the New York Times about the 'Karl Rove' techniques that had been used against him during the 2006 Senate campaign. Guilty: Liberal 'Victims' and their Assault on America McCain Running Mate's Rallying Cry' -Daily Record (Glasgow, Scotland), September 5, 2008 'Sarah Palin: A Pit Bull with Lipstick' -Fresno Bee (California), September 5, 2008 'Enter the Pit Bull with Lipstick' -Media General Washington Bureau, September 5, 2008 'Sarah Barracuda: Pitbull in Lipstick' -Democratic Daily, September 6, 2008 'The Difference Between Palin and Bush? Lipstick' -Moderate Voice, September 6, 2008 'Pitbull in Lipstick: Palin Rips Obama' -Daily News (New York), September 4, 2008 176 So there did seem to be some vague connection between Sarah Palin and lipstick in the public consciousness when Obama made his remarks on September 9. Guilty: Liberal 'Victims' and their Assault on America As one New York Times article on the fake Gannon scandal said, 'Two Democrats in Congress are pressing for investigations into how a Washington reporter who used a pseudonym managed to gain access to 200 ANN COULTER the White House and had access to classified documents that named Valerie Plame as a C.I.A. operative.' Guilty: Liberal 'Victims' and their Assault on America Money spent on new water-treatment plants is money that is not being spent on ambulances, cancer research, and healthy food. Guilty: Liberal 'Victims' and their Assault on America The liberal Brookings Institu tion and the conservative American Enterprise Institute produced a joint study showing that rather than saving lives, the new standard would actu ally cost about ten lives annually. Guilty: Liberal 'Victims' and their Assault on America ez For liberals to complain about Bush replacing his own U.S. attor neys after excusing Clinton's firing of all U.S. attorneys, not to mention his purge of the White House travel office employees-who were ca 206 ANN COULTER In order to comply with the new rule, small towns in western states, where arsenic naturally occurs, would be forced to spend hundreds of millions of dollars to buy new water plants. Guilty: Liberal 'Victims' and their Assault on America Proving that media cov erage can turn any issue into a crisis, in the midst of the media's overblown coverage of Halliburton, Harken, and Enron-the last of which was connected to Bush by virtue of the fact that both Bush and 212 ANN COULTER Enron were from Texas-the New York Times triumphantly produced a Times /CBS poll showing, as the headline said: 'Poll Finds Concerns That Bush Is Overly Influenced by Business.' Guilty: Liberal 'Victims' and their Assault on America Thus, for example, after Elian Gonzalez was taken from his Miami relatives' home at gunpoint in the second military action against American citizens by Attorney General Janet Reno, New York Times columnist Thomas Friedman wrote a column titled, not sarcasti cally, 'Reno for President.' Guilty: Liberal 'Victims' and their Assault on America But until they insulted Bush in London, they had been mentioned in the New York Tmes only in pass ing, making only two headlines in the Arts and Business sections-and 250 ANN COULTER never on the op-ed page. Guilty: Liberal 'Victims' and their Assault on America Renegade for Peace and Justice Renegade for Peace and Justice Congresswoman Barbara Lee Speaks for Me Barbara Lee ROWMAN & LITTI,EFIELD PUBLISHERS, INC. Lanham • Boulder • New York a Toronto 0 Plymouth, UK ROWMAN & LITTLEFIELD PUBLISHERS, INC. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me Her peaceful resistance inspired her contemporaries and led to a true civil rights movement that continues to galvanize new generations-and she has been a reminder to me that one per son truly can make a difference. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me So who were these new leaders who inspired so many young black people during the 1960s and 1970s? In reality they were a tal ented group of brilliant thinkers and organizers who were each 48 -16 Chapter Three accomplished in their own right and who believed passionately in righting the wrongs of our society. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me What I hope this degree will provide is the necessary tool for me to open a Free Mental Health Clinic where psychologists, psychiatrists and social workers would have a new framework to work within. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me We know from the UN and World Health Or ganization's (WHO) AIDS Update, released in December of 2007, that every day, more than 6,800 new persons become infected with 116 °t' Chapter Six HIV, usually because they don't have access to preventive methods of protection and that every day more than 5,700 persons die from AIDS, mostly because treatment services and drugs are inadequate or unavailable. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me She was from Brooklyn, New York, and later became the first African American woman elected to Congress, which is how I first met Rep. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me Danielle LeClaire, my Legislative Director, sounded 168 ~' Chapter Nine very upset and told me an airplane had crashed into the World Trade Center in New York City. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me Reports about this rally ran in many newspapers, including The New York Times, and some mem bers of Congress took note. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me See also Global Gag rule Middle East, 35, 68 Mills College, 45, 151; black history, as curriculum at, 149-50; endowed chair at, 148-49; nurturing atmosphere in, 147, 148; student body, diversity of, 148; and women's causes, 150 Mink, Patsy, 97 Mitchell, Clarence, 81 Mitchell, John, 59 Index ti 217 Montgomery Bus Boycott, 96 Moore, Dennis, 168 Moore, Michael, 159 Moore, Stephanie, 168 Mordecai, 99-100n1 Morse, Wayne, 176 Motley, Constance Baker, 95 Mubarak, Mohammed Hosni, 194 Muhammad, Elijah, 58 Mulford, David Donald, 53 Mullins, Fran, 88 Muskie, Edmund, 88 Nadler, Jerrold, 174 Nation of Islam, 58 National Association for the Advancement of Colored People (NAACP), 83 National Black Church Arts Program, 33 National Domestic Violence Hotline, 142, 143 National Intelligence Estimate (NIE), 72 National Security Agency (NSA), 193 Native Americans, 78 Negroponte, John, 71 Newark (New Jersey), 54 New Haven (Connecticut), 54 New Orleans (Louisiana), 79 Newton, Huey, 46, 47, 53-54, 56-58, 88; apartment of, 48; death of, 63; description of, 48, 218 - Index 49; discrediting of, 55; exile of, 61; and police, 52; surveillance of, 59 New York (state) 175 New York (New York), 54, 55, 122-23n1 Nicaragua, 153; Contra rebels in, 171 Nightline (television program), 191 Ninth District, xiii, 4, 166 Nixon administration, 151, 152 Nixon, Richard, 48, 152; impeachment of, 151; resignation of, 151 Noonan, Peggy, 181 Northern California Young Democrats, 159 North Korea, 74. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me Ron Faucheux, former Editor-in-Chief, Campaigns and Elections magazine and Campaign Insider newsletter; Former Louisiana Legislator and Secretary of Commerce 1920 The Year of the Six Presidents The Year of the Six Presidents DAVID PIETRUSZA BASIC 13 BOOKS A MEMBER OF THE PERSEUS BOOKS GROUP NEW YORK Copyright ® 2007 by David Pietrusza Hardcover edition first published in 2007 by Carroll & Graf Publishers Paperback edition first published in 2008 by Basic Books, A Member of the Perseus Books Group All rights reserved. 1920: The Year of the Six Presidents For information, address Basic Books, 387 Park Avenue South, New York, NY 10016-8810. 1920: The Year of the Six Presidents Once, he summoned his staunchest admirers-from New York, from Philadelphia, from Balti more, from Chicago-and, for two full hours, proceeded to lecture them on his plans for the university. 1920: The Year of the Six Presidents An academician like Wilson needed someone like Tumulty to guide him through New Jersey's often-fractious politics. 1920: The Year of the Six Presidents Some questioned his judgment in appointing a New York attorney with no foreign-policy experience, Bainbridge Colby, 1920 * DAVID PIHTRUSZA as Lansing's replacement. 1920: The Year of the Six Presidents In late 1918, New York Evening Mail editor Henry L. Stoddard urged him to run and received an unambiguous No. 'I shall never make another campaign tour,' TR vowed, 'nor shall I be the candidate.... 1920: The Year of the Six Presidents They met once or twice in New York, then at Washington's New Willard Hotel. 1920: The Year of the Six Presidents The news barely dented page four of the New York Times-or page seven of the Indi anapolis Star. 1920: The Year of the Six Presidents Veteran Republican Chauncey Depew's term was expiring, and, with Democ rats controlling both houses of the legislature, they would crown his 125 1920 • DAvLD PIETRUSZA successor, a situation analogous to Farmer Jim Martine's election in New Jersey. 1920: The Year of the Six Presidents (Library of Congress) New York's Charles Evans Hughes, the 1916 Republican Presidential nominee, and Indiana's Will Hays, the 1920 Republican National Ohio's Harry M. Daugherty-Warren Harding's deft, but somewhat sus pect, campaign manager. 1920: The Year of the Six Presidents The New York World editorialized on September 22, 1920: 'Attorney 1920 - DAVID PiETRuszA General Palmer is convinced that the Wall Street explosion was the result of a bomb plot. 1920: The Year of the Six Presidents Governors Edward I. Edwads of New Jersey and Al Smith of New York were opposed. 1920: The Year of the Six Presidents Nonetheless, they didn't come cheap, retaining $8 of each new recruit's $10 initiation fee (the 'Klectoken'). 1920: The Year of the Six Presidents The New York Times theorized that the President 1920 - DAVID 1IIE1RUSZA had 'thrown his hat into the ring of the San Francisco convention, not necessarily as a candidate but as the titular leader of the Democratic Party.' 1920: The Year of the Six Presidents Primaries in New Hampshire, North Dakota, South Dakota, New York, Wisconsin, Illinois, Montana, Massachusetts, and California resulted in uninstructed (i.e., 1920: The Year of the Six Presidents Favorite sons won in Ohio (Cox), Nebraska (Senator Hitchcock), Pennsylvania (Palmer), and New Jersey (where Governor Edwards won with just 4,163 votes cast in his behalf; Wilson drew only 149 votes). 1920: The Year of the Six Presidents Mark Sullivan wrote bluntly: The present Democratic Governor of New York is a Catholic and there is not a politician here or anywhere but readily realizes the 247 1920 - DAVID PIETRuszA position of the popular and successful Governor of New York would make that Governor not only an available but extremely desirable candidate for the presidency. 1920: The Year of the Six Presidents 'A deep-toned bell rang out once,' gushed the Socialist New York Call, 'once, twice, and the national Socialist convention laid aside its deliberations ... 1920: The Year of the Six Presidents percent in New York, 46 percent in Pennsyl vania, and just 35.5 1920: The Year of the Six Presidents In 1915, for example, suffra gettes secured referenda in four key Eastern states: New York, Pennsyl vania, Massachusetts, and New Jersey. 1920: The Year of the Six Presidents Their support was negligible: 42 percent in New Jersey, 42.5 1920: The Year of the Six Presidents Hearst's New York Journal questioned the use of 'a warship for commuting purposes.' 1920: The Year of the Six Presidents 351 1920 • Dnvm P[ETRuszX On Thursday, October 21, thirteen days before the election, Cox des perately begged Edith Wilson to bring her husband to meet him in New York City. 1920: The Year of the Six Presidents In 1916, Rexall's poll had not only forecast Wilson's close win; it had predicted his razor-thin victories in New Hampshire and California. 1920: The Year of the Six Presidents ; In Woodrow Wilson's New Jersey, only a single Democrat, Warren County's Harry Runyon, won election to the State House of Representa tives (the party's smallest previous total was 14 in 1914). 1920: The Year of the Six Presidents The Great Commoner urged Wilson to resign immediately, with Vice President Marshall becoming president, appointing Senator Harding Secretary of State, and then himself resigning to make way for the new president-elect. 1920: The Year of the Six Presidents A hundred Philadelphia police and fifty more of New York's finest augmented eight 497 1920 • DAVID PIETRUSZA hundred Metropolitan police. 1920: The Year of the Six Presidents He died of pneumonia at New York's Columbia Presbyterian Hospital on December 18, 1939. 1920: The Year of the Six Presidents Will H. Hays left the Harding cabinet in March 1922 to assume the new position of President of the Motion Picture Producers and Distributors 443 1920 • DAvrD PrETRuszA of America-in effect, he was the 'czar' o£ the film industry (other can didates were Herbert Hoover and Hiram Johnson). 1920: The Year of the Six Presidents Seabury is best remembered for his role in removing New York Mayor James J. Walker from office. 1920: The Year of the Six Presidents p. 1; NY Ribune, 14 July 1920, pp. 1, 3; NY Tribune, 15 July 1920, pp. 1, 4; NY 7hbww, 17 July 1920, pp. 1, 3; Coshocton Tribune, 15 July 1920, p. 4; New Republic, 28 +, Jtdy1920, p. 247; Fine, pp. 392-393. 1920: The Year of the Six Presidents Cummings agreed: Moley (After Seven fears), pp. 111-127; Moley (New Deal), pp. 77-81, 92-95; Farley, pp. 3 3 .-34; 1920: The Year of the Six Presidents New York: Russell & Russell, 1961. 1920: The Year of the Six Presidents New York: George H. Doran,1916. 1920: The Year of the Six Presidents NEWSPAPERS Albany (New York) Times-Union Atlanta Constitution Bedford (Pennsylvania) Gazette Boston Globe Boston Herald Boston Post Bridgeport (Connecticut) Telegram Charleston (West Virginia) Daily Mail Chicago East North Central Daily Herald Chicago Defender Chicago Tribune Cincinnati Union Cleveland Advocate Coshocton (Ohio) 7hbune Dayton Forum Dayton Journal Decatur (Illinois) Daily Review Denton (Maryland) Journal Dixon (Illinois) Evening Telegraph Elyria (Ohio) Chronicle-Telegram Fitchburg (Massachusetts) Daily Sentinel Fort Wayne Weekly Gazette Frederick (Maryland) Post Gastonia (North Carolina) Daily Gazette Gettysburg Times Grand Valley (Utah) Times Indianapolis Star Iowa City Press-Citizen Kennebec (Maine) Journal Kingsport (Tennessee) Times PERIODICAIS American Heritage The Bookman Current Literature Current Opinion The Forum The Literary Digest McCall's Magazine McClure's Magazine BB7L10GRAPHY 541 Kingston Qamaica) Daily Gleaner Lancaster (Ohio) Daily Eagle Lima (Ohio) News f4 Times-Democrat Lincoln (Nebraska) Evening State Journal Los Angeles Times Mansfield (Ohio) News Marion (Ohio) Daily Star New York Call New York Sun New York Times New York Tribune Ohio State Monitor Oneonta (New York) Daily Star Oshkosh (Wisconsin) Daily Northwestern Portsmouth (New Hampshire) Herald Reno Evening Gazette Sandusky (Ohio) Star Journal Schenectady Gazette Schenectady Union-Star The Sporting News Syracuse Herald Syracuse Herald American Trenton Evening Times Van Wert (Ohio) Daily Bulletin Warren (Pennsylvania) Evening Mirror Washington Post Washington Times Wellsboro (Pennsylvania) Agitator Winona (Minnesota) Republican-Herald Zanesville (Ohio) Times-Recorder The Nation The New Republic New York Archives North American Review Ohio History The Outlook The Western Journal of Black Studies World's Work BIBLIOGRAPHY
REPORTS Committee on Naval Affairs. 1920: The Year of the Six Presidents I happily extend thanks to the New York State Library, the New York State Archives, the University at Albany Library the Schaffer Library of Union College, the Schenectady (New York) County Public Library, the Schenectady County Community ACENOWLEDGMEms College Library the University of Rhode Island Library, Miki Goral of the UCLA Library, and Spencer Howard, Archives Technician at the Herbert Hoover Presidential Library. 1920: The Year of the Six Presidents loses nomination, 236-237 nominated for president, 214-215 Johnson-Reed Act, 422 Jolson, AI, 321-322, 322-323 K Kelley, Helen, 280,292 Keynes, John Maynard,III King, John T, 4, 68, 172-174,445 Knox, Philander, 203,224 Ku Klux Klan, 162-164, 422, 430, 451 547 INDEX Lippman, Walter, 172, 331 Literary Digest, 86, 198, 319, 397, 446 Lodge, Henry Cabot, 4,37-38, 39,182, 186, 446 on election results, 416 endorses Coolidge, 97 on Herbert Hoover, 109 proposes Treaty amendments, 47-48, 49, 50 at Republican National Convention, 210, 224, 235 on Woodrow Wilson, 210 Long, Huey, 179 Longworth, Alice Roosevelt, 4, 40, 50-51, 146, 446 Longworth, Nick, 50-51, 76,146, 446 Los Angeles Times, 203, 343, 375 Louimdle CourterJournal, 15, 336 Lowden, Frank Orren, 4, 86, 175-177, 180, 181, 183,184,184-185,186,230-231,446 loses nomination, 224 nominated for president, 214 lynching, 356, 403, 424 M Makino, Nobuaki, 30 Malone, Dudley Field, 5, 283, 285, 287, 297, 414,447 and women's suffrage movement, 295-296 Manchester (New Hampshire) Union, 180, 336 Marion Daily Star, 72-73,73-74, 335, 404 Marshall, Thomas R., 17, 23, 47, 70 Marx, Karl, Das Kapital, 264, 265 McAdoo, Eleanor Wilson (Wilson's daughter), 20, 189-190 McAdoo, William Gibbs, 5, 19-20, 21, 160, 186, 187-188,197,429-430,447 and the Ku Klux Klan, 430 marries Nell Wilson, 189-190 as presidential candidate, 190.192, 1920: The Year of the Six Presidents see also prohibition; prohibition National Women's Party, 37, 291 nativism, 193-194, 326-327, 422 New Republic, 113, 282, 312 New York Call, 51, 274, 275, 375 New York Evening Mail, 66, 206 New lbrk Evening Post, 209, 323-324 New York School of Social Work, 291 New York Sun, 38, 212. 1920: The Year of the Six Presidents 320 New York Times, 23, 60, 78, 84, 102, 103, 129, 141, 150, 166, 191, 207, 208, 221, 250, 288, 296, 331, 335, 350,366, 375, 379, 406 New Kook 7hhune, 122, 179, 204, 251, 252, 405 New York World, 13, 119-120,153,184, 191, 278, 397,413,428 Newport naval base scandal, 186-196 Nineteenth Amendment, 176, 212, 297-309, 308-309, 367. 1920: The Year of the Six Presidents He lives in upstate New York. 1920: The Year of the Six Presidents Ben Bernanke's Fed Ben Bernanke's Fed

THE FEDERAL RESERVE AFTER GREENSPAN

Ethan S. Harris




HARVARD BUSINESS PRESS Boston, Massachusetts Contents

Acknowledgments vii I It's All About the Benjamin 1 An Early Look at the New Fed Chairman PART I BERNANKE's BACKDROP The Federal Reserve's Role in the Economy 2 How the World Works 13 A Brief Course in Macroeconomics Copyright 2008 Lehman Brothers Inc. Ben Bernanke's Fed: The Federal Reserve After Greenspan Writing about the new Fed chairman seemed natural. Ben Bernanke's Fed: The Federal Reserve After Greenspan Bernanke is a member of this new generation of central bankers. Ben Bernanke's Fed: The Federal Reserve After Greenspan With this proposal he also introduced a new tongue twister to the economics literature: the optimal long-run inflation rate, or OLIR. Ben Bernanke's Fed: The Federal Reserve After Greenspan However, in Bernanke's mind, the 112 BERNANKE'S BELIEFS war will not be truly over until the new borders have been estab lished on paper. Ben Bernanke's Fed: The Federal Reserve After Greenspan Capital investment, pur chases of new homes, and other types of spending decline accord ingly, worsening the economic downturn.' Ben Bernanke's Fed: The Federal Reserve After Greenspan Zen and the Art of Monetary Maintenance The Fed's New Communication Style

N ot only has Ben Bernanke changed the internal workings of the Fed, he is also changing the way the Fed presents itself to the public. Ben Bernanke's Fed: The Federal Reserve After Greenspan By contrast, Bernanke belongs to a new generation of economists who believe in a fully trans parent central bank-that is, the bank should clearly convey to the public its forecasts for the economy, its policy goals, and the ratio nale behind its policy choices. Ben Bernanke's Fed: The Federal Reserve After Greenspan I 168 BERNANKE'S BEGINNING INTERESTING TIMES Unfortunately, there seems to be a form of Murphy's Law at work when it comes to new Fed chairmen: their term always seems to co incide with a challenging time for the economy and financial mar kets. Ben Bernanke's Fed: The Federal Reserve After Greenspan Two factors are driving this debate-first, that a new president, particularly a Democratic presi dent, may want to choose his or her own person for such an impor tant policy job; and second, that the economy and the financial markets have performed poorly during Bernanke's tenure and someone new might do a better job. Ben Bernanke's Fed: The Federal Reserve After Greenspan A good early test of who is right will come in 210 CONCLUSION 2010 when the new president decides whether to reappoint a non political technocrat (e.g., Ben Bernanke's Fed: The Federal Reserve After Greenspan For a description of the new programs visit the Web site of the Fed eral Reserve Bank of New York at www.newyorkfed.org/markets/Forms Ben Bernanke's Fed: The Federal Reserve After Greenspan Alan Greenspan, The Age of Turbulence: Adventures in a New World (NewYork: Penguin Press, 2007), 479. Ben Bernanke's Fed: The Federal Reserve After Greenspan Palestine Inside:Out Palestine Inside; Out

A N EVERYDAY OCCUPATION


SAREE MAKDISI






W.W.NORTON & COMPANY New York ' London Copyright O 2008 by Saree Makdisi All rights reserved Printed in the United States of America First Edition For information about permission to reproduce selections from this book, write to Permissions, W. W. Norton & Company, Inc., 500 Fifth Avenue, New York, NY 10110 Then every man of every clime, That prays in his distress, Prays to the human form divine, Love Mercy Pity Peace -William Blake For information about special discounts for bulk purchases, please contact W. W. Norton Special Sales at specialsalesC~ ortoo.com Palestine Inside Out: An Everyday Occupation 'Affirming once more that the Geneva Convention relative to the protection of Civilian Persons in Time of War, of 12 August 1949, is applicable to the Arab territories occupied by Israel since 1967, including Jerusalem,' Security Council Resolution 465 of 1980, for example, reiterates that 'all measures taken by Israel to change the physical character, demographic composition, institutional structure or status of the Palestinian and other Arab territories occupied since 1967, including Jerusalem, or any part thereof have no legal validity and that Israel's policy and practices of settling parts of its population and 20 Palestine Inside Out Outsides 2 new immigrants in those territories constitute a flagrant violation of the Geneva Convention relative to the Protection of Civilian Persons in Time of War and also constitute a serious obstruction to achieving a compre hensive, just and lasting peace in the Middle East.' Palestine Inside Out: An Everyday Occupation Now that the wall has gone up on what had been merely an imaginary line, 'outside' and 'inside' have a whole new meaning, and, for example, Palestinian farmers from outside the city's municipal boundaries now no longer have access to their land on the other side of what is today not merely a line on a map, but rather a concrete wall. Palestine Inside Out: An Everyday Occupation That burden, too, was shifted to the new Palestinian Authority, which quickly developed police and security forces tens of thousands strong, and a repressive apparatus no better, or more just, than the Israeli one it was nominally replacing. Palestine Inside Out: An Everyday Occupation In pursuit of its claim that Jerusalem is a Jewish city, Israel has revoked Palestinians' rights to residency; it has forcibly ejected them from Jerusalem; it has denied their applications for family unification; it has refused to register the birth of their children; it has devised laws intended to compel their children to leave them and move to the West Bank at the age of eighteen; it has built a wall to force them to choose between jobs in the West Bank and homes in Jerusalem, or the other way around; and it has made it as difficult as possible for them to build homes on land in Jerusalem that their families have owned for countless generations-while at the same time confiscating as much of that land as possible in order to build settle ments for the city's new Jewish residents, who are settling in East Jerusa lem in violation of international law. Palestine Inside Out: An Everyday Occupation This suggests their new status-literally their minoritization-as a disenfranchised group within a greater Israel that would surround them on all sides. Palestine Inside Out: An Everyday Occupation Gaza's schoolchildren entered the new year missing one text book in three. Palestine Inside Out: An Everyday Occupation DISPOSSESSION BY THE NUMBERS • Number of Palestinian towns and villages destroyed or depopulated in 1948: 531 • Percentage of those deliberately razed to the ground by the Israeli army: 70 • New Jewish towns established inside Israel between 1948 and 1953: 370 • Number of those built on land confiscated from 'absentee' Pales tinians: 350 • New Palestinian towns established inside Israel since 1948: 0 • Number of Palestinians inside Israel who are intemally displaced: 276,000 234 All of Israel is marked by the signs of the incomplete erasure of the Pales tinian presence; this absence that stubbornly remains present. Palestine Inside Out: An Everyday Occupation For all the drawbacks of the plan from the Zionist standpoint (principally that it did not offer enough territory to the Jews), 'the compulsory transfer of the Arabs from the valleys proposed for the Jewish state' offered something new, Ben-Gurion wrote. Palestine Inside Out: An Everyday Occupation 'On the basis of the revelations, 250 documentation, and factual finding brought to light by Morris (and other 'new' historians), the traditional Palestinian contention that there was a Zionist consensus on the question of finding a 'solution' to the 'Arab demographic problem,'' Nur Masalha writes, 'through transfer of Arabs to areas outside the prospective Jewish state and barring their return to their villages and towns, is corroborated.' Palestine Inside Out: An Everyday Occupation Those concrete realities matter far more than the announcement, at Annapolis, of a 'new beginning' for a political process that has already had far too many beginnings and far too little to show for them. Palestine Inside Out: An Everyday Occupation Human Rights Council, 5 September 2006; 17 January 2006; 29 January 2007); Crossing the Barrier: Palestinian Access to Agricultural Land (UN-OCHA, January 2006); West Bank Wall Main Cause of New Displacement Amid Worsening Humanitarian Situation (Inter nal Displacement Monitoring Centre, 21 June 2006); Displaced by the Wall: Pilot Study on Forced Displacement Caused by the Construction of the West Bank Wall and Its Associated Regime in the Occupied Palestinian Territories (Badil Resource Center for Palestinian Residency and Refugee Rights, Norwegian Refugee Council and Internal Displacement Monitoring Cen tre, September 2006); Movement and Access Restrictions in the West Bank: Uncertainty and Inefficiency in the Palestinian Economy (World Bank, May 2007); Four Years: Intifada, Closures and Palestinian Economic Crisis: An Assessment (World Bank, October 2004); Dror Etkes and Hagit Ofran, Breaking the Law in the West Bank: The Private Land Report (Peace Now, November 2006); The Barrier Gate and Permit Regime Four Years On: Humanitarian Impact in the Northern West Bank (UN-OCHA, November 2007). Palestine Inside Out: An Everyday Occupation On the impact of the wall and Israel's closure regime in and around Fast Jerusa lem: see Danny Siedmann, 'The Separation Barrier and the Abuse of Security' (Washing ton, D.C.: Foundation for Middle East Peace, 8 December 2004); Amira Hass, 'Palestin ians Also Sleep in the Day' (Ha'aretz, 31 March 2005): Arms Hass, 'IDF Said Changing its Checkpoint Policy' (Ha'aretz, 29 March 2005); Amira Hass, 'Separating' Jerusalem' from the 'West Bank'' (Ha'aretz, 26 January 2005); Amira Hass, 'East Jerusalemites Will Need Permits to Visit Ramallah' (Ha aretz, 25 January 2005); Meters Rappaport, 'Government Decision Strips Palestinians of their East Jerusalem Property' (Ha'aretz, 20 January 2005); 310 'The Humanitarian Impact of the West Bank Barrier on Palestinian Communities: East Jerusalem' (UN-OCHA, June 2007); 'Access to Jerusalem-New Military Order Limits West Bank Palestinian Access' (UN-OCHA, February 2006). Palestine Inside Out: An Everyday Occupation Percent' (Ha aretz, 25 August 2005); Peretz Kidron, 'Sharon's Sights on Strategic Objective' (Ha'aretz, 14 April 2004); Henry Siegman, 'Sharon and the Future of Palestine' (New York Review of Books, 2 Decem ber 2004); Naseer Amri, 'Wa'ad Balfour al-Jadid,' (AI-Hayat, 26 April 2004); Ilan Pappe, 'Israel Is Heading for a Disaster' (London Review of Books, 6 May 2004); Azmi Bishara, 'Separation Spells Racism' (AI-Abram Weekly, 1-7 July 2004). Palestine Inside Out: An Everyday Occupation 257-59,277-80,281 Latif, Abdel, 26 Lavi, Shlomo, 245 Law of Retum, Israeli, 12, 17, 100-101, 116, 129, 148, 150 League of Nations, 240 Lebanon: in Arab-Israeli War (1948), 224, 227 author's childhood in, xiii, xv, 234 borders of, 221, 240 Israeli invasion of, xiii-xiv, 269-70 Palestinians in, 261, 270, 272 Leitersdorf, Thomas, 120 Levi, Shabtai, 251 Levy, Gideon, 138, 260 Lieberman, Avigdor, 11, 134, 287 Lifshits, Naftali, 256 Likud party, 11, 120, 242 livestock, 135-37 living standards, 1-3, 7, 8-9, 21-22, 56, 58-62,63,78,101,102,156-57, 161-63,168-70,171,175,187,192, 198,204,274-75 Livneh, Eliezer, 133 Loubieh, 227 Lobbed, Bushra, 167-68 Lulu, Eliahu, 245 Loth (medic), 177-78 Luz, Jalal Abu, 108-9 Lydda,252-53 Ma'ale Adumim, 70, 120, 131, 278 Ma'ariv, 133 Index MRI scans, 168 Muhalad, Jihad, 187-88 Muhsen, Tha'ir, 49 Muhtaseb, Marzuk, 142 municipal taxes, 97, 99, 100 Musallam, Omar, 205-6 Muslims, see Islam Nablus, 7, 31, 44-47, 45, 46, 49, 50-52, 355 Machsom Watch, 62, 285 57-58, 66, 67, 76, 78, 90, 101, 104, McMahon, Henry, 239 103,131,177-94,285 Madrid conference (1991), 81, 126 Nahal Oz, 164 Mahabareh, Ahmad al-, 72-73 Nahr el-Bared refugee camp, 261 Mahmud, Shadi, 49 nakba (1948 dispossession), 228-29, 232, Makdisi, Ussama, xiii-xiv 283 Maklef, Mordechai, 251 Naqab Desert, 230-34, 236, 243, 257 Malhi, Ahmed, 205 Nasn, Muhammad, 190-91 Mapai party, 133, 245 Nasser, Ahlam, 73-75 Mapam party, 253 Nasser Hospital, 167-68 maps, xviii, 21, 81, 83, 92-93, 121, 'national institutions,' 146-48 228-30, 247, 336, 337, 338, 339, National Insurance Institute, 98 340, 341, 342, 343 nationalism, xv-xvi, 13-14, 77-78, 81-92, Marir, Yasser Abu, 117-18 261-62,264,270-76,280,286-93 Markowitz Commission, 229-30 National Union, 10-11, 147 marriages, 97, 113-19, 148-49 national unity government, Palestinian, Masalha, Nor, 132, 223, 245, 250 276-77,280-81 Masango, Duduzile, 210-11 Natsheh, Maryam al-, 139-40 Mazie, Steven, 149 nature reserves, 93, 123, 137, 279 Mearsheimer, John, 143-44 Nature Reserves and Parks Authority, 137 Mecca negotiations (2007), 275, 276 Nazareth, 78, 118, 119, 285, 295 Meir, Golda, 78, 253 Nemrin, 227 Meshaal, Khaled, 272 Netanyahu, Benjamin, 133-34 middle class, 1-3, 8-9 New Israel Fund, 29 Milstein, Uri, 251 Nicaragua, 165, 275 Ministry of Construction and Housing, Ni'lin, 55 Israeli, 124 Nissim, Moshe, 183-84 Ministry of Education, Palestinian, log 'Notification of Live Birth,' 114 Ministry of Health, Palestinian, 171 Nu'man, 65 Ministry of the Interior, Israeli, 65, 95-100,107,113-16,149 mini lands, 17-18, 23, 200 Mizrahim Jews, 235 Moldova, 17, 99, loo Moledet, 10-11, 147,287 Molotov cocktails, 30-31, 33 Montagu, Edwin, 238-39, 290 Morris, Benny, 223, 243, 244, 249-50, 251,255,289 mosques, 57, 89, 212, 219, 231, 234 Occupation: bureaucracy of, 1-6, 19-20, 95-100, 106,113-15,122-23 enclaves created by, 6-7, 62, 85, 92-93,107-11,153-60,172,204, 212-21,264,279-80,290-92,296, 340 family unification prevented by, 1-6, 21-22, 78, 97-99, 101, 102, 113-19, 182-86,205-6,217-18,226-28 356 Index Occupation (continued) fragmentation as result of, 6-7, 9, 15-32,57-61,62,71-72,85,92-93, 101-2,156,198-203,211-21, 279-80,290-92,340 historical analysis of, 222-28, 246-60, 290,295 international law violated by, 6-7, 19-20, 28, 39, 64, 69, 73, 80, 81, 83-84, 88, 91, 101, 119-20, 123-24, 128, 135, 166, 168-69, 170, 180-83, 189,193-94,205,250-51,266,270, 274,277,279,294-95 language of, xiv-xv, 5, 68, 81, 86-87, 89,101,102,103,119,124-25,127, 134, 137, 143, 150, 172, 194, 211, 271-72 legal justifications for, 12, 13, 16-19, 53-54, 64, 68, 79, 84, 101, 113-17, 127,134 -35, 35,143 media coverage of, 88-89, 172-73, 223,268-70 military enforcement of, 6, 8, 13, 28-32,33,34-36,41-63,65-70,79, 84,90,104-13,118-19,123-25, 134-38,142,143,184-86,209-12, 214,215,220-21,288-90 OCHA weekly updates on, 30-32, 33, 54-57,65-68,104-5,112-13,163, 170-71,277-78 political opposition to, 79-61, 84, 85, 86,89,167,194,263-81 randomness as factor in, 6, 22-23 U.N. resolutions on, 10, 19-20, 223, 253,262,273,274,294 violent resistance to, 7, 8, 30-31, 79-81, 88, 89-91, 107, 109-10, 118, 162,166-67,263-66,274 Wall (Separation Barrier) for, xiv, 14, 15-32, 16, 55, 58, 61, 66, 67, 68, 69, 70, 74, 75, 86, 91, 93, 101, 136-37, 194-96,197, 198-203, 199, 200, 202, 205, 274, 275, 336 security services in, 38-41, 76-77, war crimes and policies in, 175-76, 122,123 -24 182-83,250-51,260-61,266-68, soldiers deployed in, 52-54, 67, 288-90 69-70, 73-75, 84, 172, 173, 177-82, Zionist agenda of, 13-14, 128, 147-48 186-94,209-12,214,215,266-67 see also East Jerusalem; Gaza; West statistics on, 23-24, 30-32, 33, 54-57, Bank 65-68,102,104-5,112-13,142-43, Occupied Territories: apartheid compared with, 116-17, 290-93,296,297-98 author's visits to, xiii-xvi, 184-86 checkpoints for, 3-4, 12, 27, 30-32, 33, 39, 41-63, 42, 44, 45, 46, 53, 60, 66-68, 72-77, 85, 119, 153-60, 161, 162, 163, 166-67, 170-71, 172, 191-95, 205, 277 curfews imposed in, 12, 30-31, 66, 79,85,161,185-94,196,213,216, 217-18 destroyed villages in, 227-36 house demolitions in, 8, 67-68, 90, 105-13,172,176-77 human rights violated by, xv-xvi, 4, 7-6, 10, 19-20, 21, 28-30, 48-50, 77,79,83-84,116-17,122,166-77, 180-83,189,193 -94, 205, 281, 284, 288-89,294-98 international consensus on, 100, 133-34,138,167,172-73,223, 268-70,273-79,292-93,297-98 Israeli settlements in, see settlements, Israeli land appropriations in, 6, 9-32, 33, 57, 65, 68, 77-78, 91-93, 105-11, 119-27,135-40,145-48,19&-203, 231-33,257-59,277-80,281 maps of, zviii, 83, 336, 337, 338, 339, 340, 341, 342, 343 permits issued for, 1-7, 11, 24, 25, 26, 37-41,45-47,52,54-58,60,63,65, 6&-69,70,72-77,95-102,105-7, 110, 111, 112, 115-18, 153-60, 162, 163,164,165,191,197,202-3,205, 226 roadblocks in, 22-23, 36-37, 41, 50, 58-61, 60, 62, 85, 161, 194-95, 205 'seam zone' of, 16-17, 21, 22-23, 24, 26,57,58,101,202-3 Index 357 15C-51,187,196-97,203,205,206, 216,233-34,236,277 -78, 78,295 Odeh, Abdel-Latif, 25 Odeh, Ahmad, 114-15 Odeh, Ghazi Bani, 188 Odeh, Hala, 114-15 Ofra settlement, 49 'Old Man Travelling' (Wordsworth), 207 olive groves, 21, 23, 24, 25, 28, 33, 66, 104, 128, 138, 139, 194, 227, 233 Olmert,Ehud,9,11,112,264,277,288, 292, 295, 296 Omar, Mu atasem, 26-28 Omer, 236 One Country (Abunimah), 294 one-state solution, 281-98 One-State Solution, The (Tilley), 294 Operation Autumn Clouds, 174, 176-77 Operation Ben-Ami, 252 Operation Defensive Shield, 182-84, 186 Operation Determined Path, 182-84 Operation Matate, 224-27, 252 Operation Summer Rains, 174-76 Operation Yiftach, 224, 252 Oranit, 22 Oslo Peace Accords (1993-1995), 2, 20, 77, 81-87, 83, 88, 89, 92, 119, 162, 198, 205, 211, 213, 261, 264, 265, 271-72,280,281,287 Ottoman Empire, 17, 18, 20, 239 Ottoman Land Code (1858), 17, 18, 20 Oz, Amos, 285-86, 287, 288 Palestine, 221-62 agriculture in, 68, 203, 229, 233, 236, 244,246,258 Arab-Israeli War in (1948), 63, 136, 148,160,198,201,221-36,243, 248-53,286-87,289-90,294 Arab population of, 9-14, 119-27, 203,236-49,251,238-59,261-62, 281, 287-90, 292, 295-97, see also Palestinians borders of, 238, 239-40, 243 British mandate for, 17-18, 20, 122-23,127,240-41,243 'demographic problem' of, 9-14, 119-27,203,287--88,292,295-97 Green Line in (1949), 16, 198-99, 202,274,295 Jewish colonization of, 13-14, 128, 147-48,230,234,236-49,250,251, 255,257-62,281,282,284,286-87, 288,289-98 land transfers in, 9-11, 68, 203, 221-62,286-90 Occupied (Filastin al-Muhtalla), see Occupied Territories population transfers in, 9-11, 68, 203, 231-33,243-47,249-59 refugees from, 8-11, 59-61, 68, 78, 79, 81-62, 91-92, 99, 107-11, 133, 135-37,148,160-61,168,177-78, 182-84,203,204,206,226,230-33, 237-62,268,272,273,280,282, 283,293-94 right of return to, 148, 225, 234-36, 249-50,253-54,261-62,273,280, 283,293-94 U.N. Partition Plan for (1947), 223, 243,245-48,247,250,253,274 see also specific towns and villages Palestine: Peace Not Apartheid (Carter), 88 Palestine and the Palestinians (Farsoun and Arun),223 Palestine Liberation Organization (PLO), 80, 265, 272 Palestine National Council (PNC), 80 Palestinian Authority (PA), 1, 12, 80-81, 84-89,90,167,171,203,263-63, 269,271,273,274-77,278,280-82 Palestinian Centre for Human Rights in Gaza, 110 Palestinian Identity (Khalidi), 223 Palestinian Legislative Council, 264, 271-76,281 Palestinian Medical Services, 192-93 Palestinian National Initiative, 265 Palestinian Petrol Authority, 113 Palestinians: as 'absentee landholders,' 9-32, 67, 68,231-33,257-59 agriculture of, 15-62, 33, 44-47, 57, 58-61, 65, 68, 71-72, 87, 104, 110, 113,123,138-39,156,166,169, 194,195-96,198,199-200,202-3, 229,233,236,238,244,246,258 358 Palestinians (continued) as Arabs, 77-78, 98-127, 132-34, 143-48,150,160,227-49,258-59, 261-62,263,264,278,281-98 arrests of, 25, 48, 63, 66, 118, 136-37, 142, 143, 166-67, 168, 177-82, 189, 190-92,205,232,277 assassinations of, 266, 286 automobiles owned by, 37-38, 45-47, 63,191 beatings of, 47-49, 79, 183 birth certificates for, 95, 98, 101, 113-15,117 births of, 49-50, 95, 98, 101, 102, 113-15,117,186-87 businesses owned by, 2-3, 26, 34, 36-37,43,44-47,71-72,169-70, 196, 198, 212-20, 214, 215 'center of life' established by, 100 children of, 34-36, 45-47, 80, 95, 97, 108-9, 143, 161, 170, 172-74, 179, 181-82,185-87,191,192,196,204, 205-6,209-12,220,266-67,277 as Christians, 8-9, 56, 77 civilian casualties of, 50, 79, 80, 90, 172-73, 176-77, 182-94, 196, 219, 266-68 collective punishment of, 8, 111, 175-76,189 criminal elements of, 96, 97 curfews for, 12, 30-31, 66, 79, 85, 161, 185-94, 196, 213, 216, 217-18 declaration of independence by (1988),80-81 democratic traditions and, 80-81, 265, 270,273-74,279,282,283-83,292 demolished homes of, 8, 67-68, 90, 105-13,172,176-77 deportations of, 119, 238 dispossession of, 15-32, 33, 57, 65, 68,77-78,99,105-11,133,135-37, 145-48,177-82,198-203,204,206, 212,221-62,273,277-80,283, 293-94 economic situation of, 1-3, 5, 7, 8-9, 10, 21-22, 26, 29, 34, 36-47, 56, 58-62, 63, 71-72, 78-79, 82, 85, 89, 101,102,106-7,125,156-57,160, 161-63,164,165,168-70,171,175, Index 187, 189, 192, 194, 196, 198, 203, 204,206,212-20,238,264,274-75, 277, 280, 284 education of, 2, 12, 26, 27, 31, 34-37, 57-58, 65, 76, 97, 99, 109, 118-19, 148,150-51,165,167,196,197, 203,204-7,209-12,216 elections of (2006), 84, 264, 265, 271-76 emigration of, 8-9, 10, 89, 99, 133, 206 exile of, 8-9, 10, 78, 81-82, 89, 99, 119,133,168,206,261-62,282 families of, 1-6, 21-22, 34, 61, 71, 78,97-99,101,102,106-9,113-19, 137-38,162,166-67,170,172-74, 177-86,197,205-6,217 -18, 226-28 flag of, 31, 79 food supplies of, 58-61, 157, 168-70, 171, 175, 187, 192, 204 government of (Palestinian Authority), 1, 12, 80-81, 84-89, 90, 167, 171, 203,263-65,269,271,273,274-77, 278,280-82 health care of, 26-28, 32, 36-37, 42-43,49-52,55,57-58,65,72-76, 153, 156, 158, 164, 165, 166, 167-68,171,175,176,183-87, 192-93 housing permits for, 101, 105-7, 111 humanitarian aid for, 55, 56, 62, 135-36,142,162,164,170,171, 183,209-12,279,280,281 identity cards for, 2, 5, 35-36, 40, 43, 45,47,51,53-54,55,56,69-70, 95-102,114,117,119,181,189-90, 191,219 imprisonment of, 25, 38-41, 48, 63, 66,79,118,136-37,142,143,153, 166-67,168,177-82,183,189, 190-92,205,232,277 income levels of, 61, 63, 102, 162 infant mortality rate of, 102 as informers, 38-41, 76-77, 79, 164 'inside' vs. 'outside' for, xv, 68, 101, 102,103,119,124-25,127,134, 137, 143, 150, 194, 211 intelligentsia of, 206-7, 286 Index interrogations of, 38111, 76-77, 79, 164, 181, 183 Israeli government spending on, 125, 203,206,274-75,284 in Jordan, 3-4, 97-98, 99, 114-I5, 261,272 in labor market, 21-22, 41, 56, 78, 101,157,161-63,164,169-70,198 land ownership by, 6, 9-32, 33, 57, 65, 68, 77-78, 91-93, 105-11, 119-27, 135-40,145-48,198-203,231-33, 257-59,277-80,281 leadership of, 80-81, 84, 85-89, 90, 167,263-81 in Lebanon, 261, 270, 272 limited autonomy of, 77-78, 83-84 living standards of, 1-3, 7, 8-9, 21-22, 56, 58-62, 63, 78, 101, 102, 156-57, 161-63, 168-70, 171, 175, 187, 192, 198,204,274-75 marriages of, 97, 113-19, 148-49 in middle class, 1-3, 8-9 as Muslims, 56-57, 69, 77, 86, 102, 219,271-72,273,289 nationalism of, xv-xvi, 13-14, 77-78, 81-92,261-62,264,270-76,280, 286-93 national unity government of, 276-77, 280-81 parliament-in-exile of, 81 passports of, 2-4, 55, 56, 205, 219 permits needed by, 1-7, 11, 24, 25, 26,37-41,43-47,52,54-58,60,63, 133-37,148,160-61,168,177-78, 182-84,203,204,206,226,230-33, 237-62,268,272,273,280,282, 283,293-94 right of return for, 1-3, 148, 225, 234-36,249-50,253-54,261-62, 273,280,283,293-94 search and seizure of, 63, 66, 177-82, 190-92 as second-class citizens, 77-78, 101-2, 112, 116-17, 118, 143-50, 230, 278, 281-84 state identity numbers of, 113-15 taxation of, 12, 17, 20, 71, 84, 97, 99, 100,125,264,274-75 unemployment rate for, 38-41, 56, 61, 71, 85, 157, 162, 165, 277 'voluntary transfer' of, 9-11, 203 women as, 45-50, 113-15, 137-38, 151, 153, 179, 181-82, 186-87, 207 Palmach, 224-27 Paltel, 3 Papp€, Ilan, 223, 250, 251, 285 Paris Peace Conference (1919), 239-41 parliament-in-exile, Palestinian, 81 passports, 2-4, 55, 56, 205, 219 patrol boats, 168-69 Peace Now, 18 peace process, Israeli-Palestinian, 81-92 Annapolis summit on (2007), 64, 277-78,292 apartheid as concept in, 116-17, 59 65,68-69,70,72-77,84,95-102, 290-93,296,297-98 105-7,110,111, 112, 115-18, 119, Camp David meeting on (2000), 133-60,162,163,164,165,191, 87-89,92,278,294 197,202-3,205,226 'demographic problem' in, 9-14, political factions of, 79-81, 84, 85, 86, 103-4,111-12,113,119-27,203, 89,167,194,263-81 287-88,292,295-97 population of, 2-3, 9-14, 22, 63, final status of, 86, 87-88, 281-98 77-78,82,85,98-127,132-34, Israeli peace movement and, 135-66, 143-48,150,160-61,170,198,203, 142,285-90,293,297-98 220-21,227-49,258-59,261-62, land appropriations as issue in, 9-11, 263,264,278,279-98 68,70,91-93,203,221-62,286-90 Poverty rate of, 7, 58-62, 102, 156-57, language of, 68, 81, 86-87, 89, 168-70,171,175,187,192,204, 271-72 274-75 Madrid conference on (1991), 81, 126 as refugees, 8-11, 59-61, 68, 71, 78, Mecca negotiations on (2007), 275, 79, 81-82, 91-92, 99, 107-11, 133, 276 360 peace process, Israeli-Palestinian (con tinued) media coverage of, 88-89 national liberation as concept in, 271-72,287-90 one-state solution for, 281-98 Oslo Accords for (1993), 2, 20, 77, 65, 67, 68, 78, 104, 197, 198-203, 81-447, 83, 88, 89, 92, 119, 162, 199, 200, 202 198, 205, 211, 213, 261, 264, 265, Qaryut, 31 271-72,280,281,287 Qassam rockets, 172, 175-76, 177, 194, Quartet participation in, 90, 273-74, 266 276 Qedumim settlement, 67 right of return in, 148, 225, 234-36, Quartet, 90, 273-74, 276 249-50,253-54,261-62,273,280, Question of Palestine, The (Said), 241 283,293-94 Qurie, Ahmed, 86 Road Map for, 86, 90-91, 264, 272 Qurini, Ahmed al-, 192-93 self-determination in, 13-14, 77-78, Qurtuba Elementary School, 209-12 81-92,261-62,264,270-76,280, Qusin checkpoint, 56 286-93 settlements as issue in, 19-20, 81, 84, rabbis, 148-50, 237 87,91-93,126,27'0 Rabin, Ytzhak, 80, 84, 131, 132 two-state solution for, 80, 81-90, Rachel's Tomb, 196 264-65,271-72,273,279,280, Rafah, 67-68, 90, 108, 153, 158-60, 163, 281-82,285-90,292 164-65,166,170,277 U.S. role in, 86, 87-91, 154, 156, 165, Rahat, 236 177,183,268-69,271,273-76,281 Ramallah, 5, 30, 39, 54, 55-56, 70, 73, Peel, William Wellesley, Lord, 243-44 76-77, 78, 117, 118-19, 205-6, Peel Plan (1937), 243-44, 246 285 Peled, Mike, 293 Ramat Eshkol, 126,128 Peres, Shimon, 131, 132 Ramin,49,50 permits, 1-7, 11, 24, 25, 26, 37-41, Ramleh, 252, 253, 257 45-47,52,54-58,60,63,65,68-69, Ras al-Ain neighborhood (Nablus), 70,72-77,84,95-102,105-7,110, 185-86 111,112,115-18,119,153-60,162, Ras al-Amud neighborhood (Jemsalem), 163, 164, 165, 191, 197, 202-3, 205, 106-7 226 Ras Atiya, 25, 201, 202 Philip Morris, 3 Rashi, 132-33 Pisgat Ze'ev settlement, 106, 126 Rasmi, Captain, 39-41 Plan Dalet (Plan D), 250-51 Ras Taa, 202 Planning and Building Committee, Reagan, Ronald, 275 Israeli, 107 Reconstruction, 291 Popper, Nathaniel, 149 Red Crescent, 73 poverty rate, 7, 58-62, 102, 156-57, Red Cross, 36, 109, 142, 183, 266 168-70,171,175,187,192,204, Red House, 250 274-75 'Reform and Change' electoral list, 273 Prelude, The (Wordsworth), xiv refugees, 8-11, 59-61, 68, 71, 78, 79, 'present absentees,' 68, 231-33, 81-82, 91-92, 99, 107-11, 133, 257-59 135-37,148,160-61,168,177-78, Procter & Gamble, 3 182-84,203,204,206,226,230-33, Index public transportation, 37, 41-42 'public use' land, 127 Qa'adan family, 146 Qalandia, 44, 53, 54-55, 69, 76 Qalqilya, 15, 16, 21, 24-25, 26, 28, 33, Index 237-62,268,272,273,280,282, 283,293-94 RE/MAX Real Estate, 128 Remnick, David, 269-70 rental contracts, 98 Retroactive Transfer: A Scbeme for the Solu tion of the Arab Question in the State of Israel, 254 Returning to Haifa (Kanafani), 286-87 Revisionist Zionism, 13, 242-43 Rice, Condoleezza, 64 right of return, 1-3, 148, 225, 234-36, 249-50,253-54,261-62,273,280, 283,293-94 Road 1, 106 Road 60, 30, 31, 104, 105, 122 Road 90, 66 Road 317, 30 Road 505, 67 Road Map to Peace, 86, 90-91, 264, 272 road networks, 6, 12-13, 22-23, 30, 31, 32-41, 35, 37, 38, 50, 59, 66, 85, 87, 93,104,194,199,201-2,212,229, 232,337 Roi settlement, 105 Roman Orthodox Housing Complex, 104 Rosen, Nit, 293-94 Ross, Dennis, 88 Rothschild, Lionel Walter, 238, 290 Route 181: Fragments of a journey in Palestine-Israel, 223-28 Russia, 11, 12, 17, 90, 99, 100, 162, 224, 273 Rotten, Tim, 143-44 Sabra and Shatila massacres (1982), 268 Sabras (native-born Israelis), 130 Sacred Landscape (Benvenisti), 223 Safad, 257 Said, Edward, 241, 242, 296-97 St. John Eye Hospital, 7576 Salah Ed-Din road, 67 Salfit, 30-31, 34 Salim, Ma'an, 25 Salim, Mohammad, 25 Samaria, 11, 16, 131-32, 295 Samiramees, 71 Samuh, Fadel al-, 140-41 361 'sanitary margins,' 32 Sanniriya, 65 Sarraj, Eyad el-, 173 'seam zone,' 16-17, 21, 22-23, 24, 26, 57,58,101,202-3 search and seizure, 63, 66, 177-82, 190-92 second intifada (2000), 7, 8, 89-91, 107, 109-10,166-67,265-66 Secret Life of Sated, the III-Fated Pessopti mist, The (Habibi), 221-22, 230 'security' blocks, 39-41 Security Council, U.N., 7, 8, 80, 88, 177, 273, 274, 294 Segal, Rafi, 120, 124 Senator, Werner David, 245 Sephardim Jews, 235 settlements, Israeli, 119113 Allon Plan for (1967), 77-78, 81, 83, 92, 120, 224, 278 as colonization program, 12-13, 18, 19-20,77 -78,81,83,91-93,99, 105,119-43,224,278 in Gaza, 92, 133, 161, 163-64, 173, 287 government support for, 102, 106, 12527, 133-34 houses invaded by, 140112 housing units for, xiv-xv, 64, 106-12, 119-29,277-78 illegal outposts of, 105 international law violated by, 19-20, 128,135,145-46,275 international opposition to, 133-34, 138 Israeli Master Plan for, 122-23 for Jewish immigrants, 99, 127-29 land appropriations by, 18, 78, 135-40, 145-48,227-36,279-80,281 legal rationalization for, 132-35, 143, 145-48 military support for, 134-38, 141, 142, 266-67 Palestinians attacked by, 134, 135-42 Palestinian villages replaced by, 227-36 in peace process, 19-20, 81, 84, 87, 91-93,126,278-80 population of, 99, 119-29, 279-60 362 Index settlements, Israeli (continued) real estate brochures for, 127-29 religious rationale for, 132-33 road network for (bypass roads), 12-13, 32, 33-34, 35, 37, 37, 38, 50, 59, 85, 87,201-2,212,229,232,337 territorial surveillance by, 123-25 vigilantes in, 134, 135-36, 138 in West Bank, xiv-xv, 6, 12-13, 18, 19-20, 28, 29, 32, 41, 81, 84, 87, 91-93,105 -11,119-27,121,125, 126,133,156-57,161,194-96, 209-21, 213, 214, 215, 217, 218, 275,277-80,283,287 see also specific settlements Shahak, Israel, 260 Shajara, 226-28, 229 Shamir, Yitzhak, 80, 256 Sharett, Moshe, 244-45, 254, 255 Sharon, Ariel, 9, 89, 91, 92, 130, 157, 260, 264, 266, 288 Shartabi, Tareq al-, 141-42 Shatareh, Shadi, 49 Shati, Mujahid al-, 73-75 Shave Shomron checkpoint, 31-32 Shavit, Ari, 289 Shehadeh, Salah, 266 Sheikh Saad, 41-43, 72-73 Sherif Hussein of Mecca, 239 Shetrit, Uri, 110 Shia Muslims, 269,270 Shiloah, Tzvi, 133 Shin Bet, 76-77, 89, 164 Shlaim, Avi, 223, 238, 249, 250 Shomron,129,130 Shqeirat, Laila, 41-43, 72 Shu'afat neighborhood (Jerusalem), 106 Shu'fat refugee camp, 70 Shulman, David, 13 5 -36 Siegman, Henry, 92, 156-57, 270, 279, 281 Silwan neighborhood (Jerusalem), 110 Sivan, Eyal, 223-28 slavery, 290 Sma'aneh, Abroad, 192-93 Smedley, Lord justice, 262 Sobhi (vegetable vendor), 71-72 Sofer, Amon, 9-10, 288-89 Songs of Innocence and Experience (Blake), xiv sonic booms, 173-74, 204 Soto, Alvaro de, 271, 273-74, 281-82, 285,290 souks, 212-20 South Africa, 116-17, 272, 290-93, 296 special planning committees, 123-24 state identity numbers, 113-15 'state land,' 18, 33, 37, 146-47 Steinberg, Mati, 89-90 Stem Gang, 256 stone throwing, 66, 80, 188, 191, 210 Subuh, Farid, 44-47 Sufa, 163, 164 suicide bombings, 80, 82, 90, 265-66, 268-69 Suleiman, Fathiya, 184 Sunni Muslims, 269 Supreme Court, U.S., 146 Sur Baher, 118 Sweden, 176 Sykes-Picot Agreement (1916), 239 Syria, 133, 224, 225, 227, 240, 241, 261, 272 Ta'ayush, 135-36, 285 Tabs, Mahmoud Abu, 168 Taha, Mithqal Abu, 108 Talmud, 132-33 tanks, 66, 67, 108, 176, 185, 186, 188 Tarqumiya checkpoint, 33, 113 taxation, 12, 17, 20, 71, 84, 97, 99, 100, 125,264,274-75 Taybeh, 56 Tehilla, 127-29 Tel Aviv, 63, 154, 201, 234 Tel Rumeida, 57, 138, 209-12 Temporary International Presence in Hebron (TIPH), 142, 210 'territorial cells,' 172 terrorism, xv, 13, 16, 80, 82, 90, 123-24, 130,182,265-70,296 textiles industry, 169 Three Wise Men, 126 Tiananmen Square massacre (1989), 133 Tiberias, 257 Tilley, Virginia, 294 Times (London), 78 Tomb of the Patriarchs, 56, 218, 219 Torah, 132-33 torture, 8, 79, 183 tourism, 56, 110, 196 Tovah (Jewish settler), 129-31 Transfer Committee, 254-55 Trans-Israel Highway, 201 Transkei, 296 Tubas, 105 Tulkarm, 26, 27, 50, 51, 57, 198 tunnels, 37, 37, 66, 201-2 Tur an, 226, 227 Turki, Ahmad al-, 192 Tutu, Desmond, 177, 291, 297 Twaneh, 134 two-state solution, 80, 81-90, 264-65, 271-72,273,279,280,281-82, 285-90,292 unemployment rate, 38-41, 56, 61, 71, 85, 157, 162, 165, 277 United Nations (U.N.), Palestine Inside Out: An Everyday Occupation -Ted Widmer, The New York Times 'A richly detailed account of Franklin Roosevelt's first 100 days in the Oval Office.' The Defining Moment: FDR's Hundred Days and the Triumph of Hope This book should be of interest to everyone who cares about the New Deal, and also to everyone who wants to under stand the character of American politics.' The Defining Moment: FDR's Hundred Days and the Triumph of Hope - -Walter Isaacson, author of Benjamin Franklin e Defining Moment









Simon €X Schuster Paperbacks FDR's Hundred Days and the Triumph Hope For Emily
SIMON & SCHUSTER PAPERBACKS Rockefeller Center 1230 Avenue of the Americas New York, NY 10020 Copyright C 2oo6 by Jonathan Alter All rights reserved, including the right of reproduction in whole or in pan in any form. The Defining Moment: FDR's Hundred Days and the Triumph of Hope New Deal' 319 Appendix Inaugural Address, March 4, 1933 First Fireside Chat, March 12, 1933 Notes 349 Bibliography 385 Acknowledgments 397 Index 401 339 343 - AUTHOR'S NOTE - IN MORE THAN TWO DECADES covering politics, I've had a good look at many of the leaders who shape our world. The Defining Moment: FDR's Hundred Days and the Triumph of Hope I was in the theater in Prague in 1989 as Vaclav Havel an nounced that the Czech Communist Party had fallen from power; I rode around in a small bus with Bill Clinton in 1992 and with John Mc Cain in 2ooo as each defined himself for a national audience in just a ' few weeks in New Hampshire; I stood five feet from George W Bush at a smoldering Ground Zero as he vowed through a bullhorn to retaliate for the attacks of September 1,1, 2001. The Defining Moment: FDR's Hundred Days and the Triumph of Hope My goal is to explain and re-create that psychological success, the one that brought us this new America-a country of commitment to one another, with a set of governing values we are debating anew today. The Defining Moment: FDR's Hundred Days and the Triumph of Hope On Friday, the New PROLOGUE York Stock Exchange suspended trading indefinitely and the Chicago Board of Trade bolted its doors for the first time since its founding in 1848. The Defining Moment: FDR's Hundred Days and the Triumph of Hope And so the approving headline FOR DICTATORSHIP IF NECESSARY ran in the New York Herald-Tribune on March g, ! The Defining Moment: FDR's Hundred Days and the Triumph of Hope But in the New York social season of 1903, the fifth cousins once re moved were thrown together at a Madison Square Garden horse show. The Defining Moment: FDR's Hundred Days and the Triumph of Hope They had seen each other as toddlers at Hyde Park and at one family party in New Jersey when Franklin was seventeen and Eleanor fourteen. The Defining Moment: FDR's Hundred Days and the Triumph of Hope The choice that year of Tam many Hall (the Democratic machine that ran New York City) was 'Blue-Eyed Billy' Sheehan, a mediocre lawyer and party hack not qual ified to go to Washington. The Defining Moment: FDR's Hundred Days and the Triumph of Hope 35 Chapter Six 'The Medieval Gnome'


D URING THE CONTEST WITH TAMMANY HALL over Billy Sheehan, FDR met a cantankerous reporter for the New York Herald named Louis McHenry Howe. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Then, with one arm on his son James and the other on a crutch, he slowly made his way to the podium to nominate his fellow New Yorker, Al Smith, for president. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Almost no one dared start a business or try something new in life, except when forced by circum stance. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Hoover insisted in his memoirs that this was the result of a marketing campaign by Oregon and Washington State apple growers, who shrewdly set up a new kind of distribution network to raise prices and dispose of their surpluses. The Defining Moment: FDR's Hundred Days and the Triumph of Hope 86 to his condition was so great that he deleted a reference to a polio epi demic that struck New Yorkers that year. The Defining Moment: FDR's Hundred Days and the Triumph of Hope The president felt that the governor of New York had primary respon sibility for supervision of the Stock Exchange, which was located in his state, and he resented that FDR had not been held more responsible for the Crash. The Defining Moment: FDR's Hundred Days and the Triumph of Hope The intellectual stimulation and creative ferment she had found in New York City would be hard to reproduce in the capital. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Victory in November would mean moving to Wash ington and giving up the exciting new life she had built. The Defining Moment: FDR's Hundred Days and the Triumph of Hope When Moley and Rosenman heard him begin, they were dumb Chapter Nineteen The Bonus Army


„ H ERBERT HOOVER, FOR ONE, was not impressed with the gov ernor of New York, and he missed no chance to rip Roosevelt privately for concealing his disability. The Defining Moment: FDR's Hundred Days and the Triumph of Hope To accomplish this, FDR proposed abolishing many small agencies and promised to don a green eyeshade and 'eliminate from Federal budget-making all new items except such as relate to direct relief of unemployment.' The Defining Moment: FDR's Hundred Days and the Triumph of Hope The Groton and An- 146 dover men got along well, spending six and a half hours alone, includ ing the drive back down to New York City. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Even after leaving the governorship of New York on Janu ary I, he had offered the nation no plans for easing the Depression, which was increasingly being printed with a capital 'D.' The Defining Moment: FDR's Hundred Days and the Triumph of Hope Now he hosted FDR, his retinue of secretaries and Secret Service men, and four other 'boon companions,' including a federal judge and Theodore Roosevelt's son, Kermit, the only member of the Oyster Bay branch of the family with anything nice to say about the new president. The Defining Moment: FDR's Hundred Days and the Triumph of Hope
Giuseppe Zangara was a thirty-two-year-old unemployed New Jersey bricklayer who stood a mere five foot one and weighed only io5 `FDR took to heart the advice he gave of speakers-'be sincere, be brief, and be JONATHAN ALTER pounds. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Just after returning from Miami, FDR attended the Inner Circle Club dinner in New York City on February 18, a night of drinking, skits, and easy rapport between reporters and the politicians they cov ered. The Defining Moment: FDR's Hundred Days and the Triumph of Hope The economy was recovering nicely in 1932, with a half million new jobs, when the Democrats in sisted on publicizing RFC loans, which sent thousands of banks reeling, . The Defining Moment: FDR's Hundred Days and the Triumph of Hope Attor ney General-designate Thomas J. Walsh, easily the most respected member of FDR's new Cabinet, had died of a heart attack under titillat ing circumstances. The Defining Moment: FDR's Hundred Days and the Triumph of Hope The show featured a sketch entitled 'Franklin D. Roosevelt to Be Inaugurated Tomorrow' that lampooned the Hoovers for stripping the White House bare and Eleanor for resenting the move from New York to Washington. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Hoover said that he might try to invoke the old statute if FDR shared responsibility by guarantee ing that the new Democratic Congress would not object. The Defining Moment: FDR's Hundred Days and the Triumph of Hope 6 The governor basks in congratulatory telegrams after his dramatic T932 'flight to Chicago' to accept the nomination in person for the first time in history and unveil the 'New Deal.' The Defining Moment: FDR's Hundred Days and the Triumph of Hope The bank runs and bank closings and unprecedented suspension of trading at the New York Stock Exchange and the Chicago Board of Trade were not exactly votes of confidence in the new administration. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Even when the ex citement passed, the intensity of the public's connection to the president was on a new level. The Defining Moment: FDR's Hundred Days and the Triumph of Hope In New York, Macy's announced that it would offer credit for the first time in its history and Lord & Taylor saw a chance to expand its charge account 248 Metal Money' out of magnesium, with a value of twenty cents a coin, which was less than workers were charged for it. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Armed with new authority, his strategy for reviving confidence in the financial world nonetheless consisted mostly of not 252 JONATHAN ALTER fulfilling the worst fears about him, at least not immediately. The Defining Moment: FDR's Hundred Days and the Triumph of Hope 'It is one of the great humanitarian qualities of the New Deal that it does not guil lotine, imprison or exile the Public Enemies,' the journalist John Franklin Carter wrote, without meaning it as a backhanded comment. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Each succeeding week, month, or year brought a new set of issues that he could master, then muster in shaping public opinion. The Defining Moment: FDR's Hundred Days and the Triumph of Hope The New Yorker writer Brendan Gill recalled meeting her on a cruise and notic ing her pleasure when Gill's father addressed her as 'Your Majesty.' The Defining Moment: FDR's Hundred Days and the Triumph of Hope Most of the landmark New Deal ac complishments that endure to this day-the Securities and Exchange Commission (1934), Social Security (1935), and the pro-union legisla tion like the Wagner Act (1935) that empowered the government to fight unfair labor practices--date from later in the decade. The Defining Moment: FDR's Hundred Days and the Triumph of Hope He drew elaborate organization charts sketching lines of authority several levels down in the new agency. The Defining Moment: FDR's Hundred Days and the Triumph of Hope It helps explain why the CCC was the most popular New Deal program. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Hugh Johnson's omnibus bill-the National Industrial Recovery Act-established, an important new principle: Washington would em brace a peacetl 'industrial policy' to fight'the Depression by directly vaa' ~:~at , 302 JONATHAN ALTER supervising the economy and putting millions to work. The Defining Moment: FDR's Hundred Days and the Triumph of Hope The center piece of the new law was the National Recovery Administration (NRA), which for several months after the Hundred Days became the biggest news in the country. The Defining Moment: FDR's Hundred Days and the Triumph of Hope In a Solomonic move that also fit with his idea of dtv responsibility among his subordinates-the better 304 JONATHAN ALTER to maintain control in his own hands-he took the public works part of the soon-to-be sprawling new bureaucracy out of Johnson's bailiwick and gave it to Harold Ickes. The Defining Moment: FDR's Hundred Days and the Triumph of Hope No letters or accounts reflect ing his feelings survive; all we know is that he had left a broken man, his political career in ruins, and returned as the most dynamic new head of state in the world. The Defining Moment: FDR's Hundred Days and the Triumph of Hope ,, 324 - EPILOGUE Rexford Tugwell became a lightning rod for conservative critics of the New Deal, a walking parody of the tweedy elitist liberal. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Like so many in the president's orbit, he thought the New Deal needed a rest: There is a giant lying supine across the continent. The Defining Moment: FDR's Hundred Days and the Triumph of Hope In a broader sense, the New Deal helped Americans begin to see their responsibilities to each other more'clearly. The Defining Moment: FDR's Hundred Days and the Triumph of Hope The New Deal yielded a legacy of commonality and community that filtered down to the local level and lasted for decades. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Samuel Rosenman PPF-President's Personal File, FDRL RFP-Roosevelt Family Papers, FDRL SDR-Sara Delano Roosevelt TNR-The New Republic WM-Watch-Miller Documents, Herbert Hoover Presidential Library AUTHOR'S NOTE xiii a 'defining moment': The earliest citation in Nexis of the title of this book is in a November 13, x983, article in The New York Times by Howell Raines about presidential candidate Walter Mondale rallying the Demo cratic establishment against the candidacy of John Glenn. The Defining Moment: FDR's Hundred Days and the Triumph of Hope -- NOTES -

ABBREVIATIONS COHP-L-Columbia Oral History Project ER-Eleanor Roosevelt FBP-Family, Business Personal, FDRL FDR-Franklin Delano Roosevelt FDRL-Franklin Delano Roosevelt Library MN-Meyers-Newton Documents, Herbert Hoover Presidential Library NYT-New York Times PPA-The Public Papers and Addresses of Franklin D. Roosevelt, Vols. The Defining Moment: FDR's Hundred Days and the Triumph of Hope 1 3 3 3 3 3 4 4 5 5 5 New Dealers, 143. The Defining Moment: FDR's Hundred Days and the Triumph of Hope 273 273 274 275 275 NOTES 276 'painless arithmetic,' New Yak Times, March 26,1933 276 'Just deny you were ever in Pittsburgh': Rosenman, 87. The Defining Moment: FDR's Hundred Days and the Triumph of Hope New York: Random House, 1999. The Defining Moment: FDR's Hundred Days and the Triumph of Hope New York: Oxford University Press, 1985. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Boston: WGBH, The American Experience, 1994 CCNY TV, Roundtable on 30th anniversary of FDR's Inaugural, 1963 INTERVIEWS Susan Thomas Armour, August 5, 2002 Mary Bain, September 12, 2002 Jimmy Breslin, May 7, 2003 James McGregor Bums, April 17, 2003 Bill Clinton, August 9, 2001 Leon Despres, September 13, 2002 George Elsey, May 3, 2003 Richard Flynn, November 8, 2005 Timothy Flynn, November 11, 2005 Gerald Ford, July 19, 2oo1 Robert Morgenthan, November 2, 2002 Richard E. Neustadt, September 25, 2002 Robert Rosenman, October 7, 2002 Martin Siegel, September 5, 2002 Walter Sondheim, October 2, 2002 Studs Terkel, August 15, 2001 PAPERS Adolf Berle Papers Basil O'Connor Papers Columbia University Oral History Project (COHP), Columbia University, New York: Charles Bledsoe, Marquis Childs, Arthur Krock, Eugene Meyer, Ray mond Moley, Basil O'Connor, Frances Perkins, Rexford Tugwell, James War burg. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Chicago Tribune Detroit Free Press Detroit News New York Daily News New York Herald-Tribune New York Times (NYT) Washington Post The Atlantic Esquire Harpers Holiday BIBLIOGRAPHY NEWSPAPERS



MAGAZINES 393 394 Ladies' Home Journal The Literary Digest The Nation The New Republic (TNR) Newsweek The New York Review of Books The New Yorker Saturday Evening Post Time David Grubin Productions, FDR. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Roosevelt Presidential Library and Museum (FDRL), Hyde Park, New York Herbert Hoover Presidential Library, West Branch, Iowa Walch-Miller Documents (WM) Meyes-Newton Documents (MN) Lorena Hickok Papers Louis Howe Papers President's Personal File (PPF) Raymond Moley Papers, Hoover Institution on War, Revolution and Peace, Palo Alto: Stanford University, California Rexford Tugwell Papers Roosevelt Family Papers (RFP) Sam Rosenman Papers Speech Files 395 -- ACKNOWLEDGMENTS -
I recently discovered some old papers of mine. The Defining Moment: FDR's Hundred Days and the Triumph of Hope During my visits to the Franklin D. Roosevelt Library in Hyde Park, New York, archivist Bob Clark was especially useful in filling the black hole in the records between January 1, 1933, when FDR left the gover- 398 ACKNOWLEDGMENTS norship, and March 4,1933 , when he became president. The Defining Moment: FDR's Hundred Days and the Triumph of Hope 120 7,129 - 35, 1 39 , 140, 151, 179, 325 FDR compared with, 77, 82, 141, 144, 166, 208, 216, 217, 233, 235 253, 265, 275, 37111 FDR's emergency letter from, 178-8 1 FDR's relationship with, 2, 22,45-46, 88,93-94,139-47,178 -8 3, 1 9 8-20 3 , 211, 237, 325, 36311 New Deal and, 265, 274, 318 Hoover, Ike, 19g, 199 Hoover, J. Edgar, 295-96, 321-22, 38111-8211 Hoover, Lou, 93,.94 The Defining Moment: FDR's Hundred Days and the Triumph of Hope E Morgan, 159,202 Jung, Carl, 23, 241 Justice Department, U.S., 166,295-0,322 Kan, Milton, 283 Kelley, Virginia, I 6n - Kennan, George E, 37zn Kennedy, David, 235 Kennedy, Jacqueline, 19511 Kennedy, John R, 22,181n, 21611, 257, 319,326 Kennedy, John E, Jr., 19511 Kennedy, Joseph E, 42-43, 109, 220, 237, 324 Kennedy, Robert F, 35711 Kennedy, Susan Estabrook, zo3 Kerensky, Alexander, 298 Keynes, John Maynard, ~3, 276-77, 308 Khrashchev, Nikim, 18111 Kieran, James, 97 Kirby, Rollin, 119 Kirkland, Lane, 298-99 Krock, Arthur, 3, 81, 134, 207, 217, 247, 2 55• 297, 324, 35311 labor, 81, 96, 98, 134, 149, 165, 274 child, 34, 166, 302 FDR and, 41-42, 293, 294 New Deal and, go, 149, 293, 294, 300-303,3x6 workweek and,34, i66,300-30T 1 44 - 45 ,286 , 28 7,3 0 7-8,323 Long, Breckenridge, 162, 33411 Long, Huey, 92, 123, 215, 222, 22311, 238, ;6 7 ,2 7 1,2 92,302,317,336 bank crisis and, 151, 153, 247, 251, 3 6 411 election of x932 and, rob, rog, x22 FDR's relationship with, 156-57, 237, 326,37511 408 INDEX Long, Huey (cont.) The Defining Moment: FDR's Hundred Days and the Triumph of Hope Although 46 new parishes were started, more churches were closed, resulting in a net loss of 305 parishes. Quitting Church: Why the Faithful are Fleeing and What to Do about It Leave it to Americans to come up with the mega-church, where we can stroll in and decide precisely how much we want to be involved in a new community or stay semi anonymous in the crowd, just you and me, God. Quitting Church: Why the Faithful are Fleeing and What to Do about It We prayed sentences like, 'Drive us toward a new life of justice, peace, and integrity.' Quitting Church: Why the Faithful are Fleeing and What to Do about It The reason they have to be creative is they have to continually think up new things to do. Quitting Church: Why the Faithful are Fleeing and What to Do about It I found this a curious choice, since a new book on the famous nun's years of spiritual dryness and inability to feel God's love had come out just the month before. Quitting Church: Why the Faithful are Fleeing and What to Do about It This and even stranger phenomena that originated at this church were totally new in the charismatic world. Quitting Church: Why the Faithful are Fleeing and What to Do about It Many Baptists agree the gift was in use two thousand years ago, but they say that what passes today for tongues and inter pretation isn't the same thing as was current during New Testament times. Quitting Church: Why the Faithful are Fleeing and What to Do about It They did not have several decades' worth of data behind them that would show whether the discontented were a new factor or a permanent fixture in the church. Quitting Church: Why the Faithful are Fleeing and What to Do about It They want something that broadens and deepens them'' 175 QUITTING CHURCH Of New Zealand's four million inhabitants, 15-20 percent are involved in a church, he said. Quitting Church: Why the Faithful are Fleeing and What to Do about It -David Murray, Speecbwriter's Newsletter WHITE HOUSE GHOSTS Presidents and Their I Speechwriters tke Robert Schlesinger SIMON & SCHUSTER PAPERBACKS New York London Toronto Sydney ForArthurM. White House Ghosts: Presidents and Their Speechwriters So when he left the department in September 1933, he moved at once into preparation of a new weekly news and opinion magazine, Today. White House Ghosts: Presidents and Their Speechwriters Iowa-born, he had worked in New York State social services - WHITE HOUSE GHOSTS before joining the administration in March 1933 as head of federal re fief efforts. White House Ghosts: Presidents and Their Speechwriters Hearing nothing for several days, and spurred by the untidy new speechwriting process, not to mention business opportunities he was starting to lineup (which would have paid a great deal more than the $10,000 he received in annual White House wages), Rosenman went to see Truman. White House Ghosts: Presidents and Their Speechwriters In the days after Truman became president, Rosenman and the WHITE HOUSE GHOSTS rest of the White House staff no more than twenty people in total submitted their resignations so that the new president could bring his own folks in to the administration. White House Ghosts: Presidents and Their Speechwriters Cloistered in the Commodore Hotel in New York City, they had fired drafts off to the candidate's train. White House Ghosts: Presidents and Their Speechwriters 'The hope,' he later wrote in his diary, 'was to awaken in these small nations an understanding that there were steadily opening up new and promising opportunities for using these materials and these skills to the benefit rather than to the destruction of men.' White House Ghosts: Presidents and Their Speechwriters And he spoke at a moment of transition: a new generation-'born in this century, tempered by war, disciplined by a hard and bitter peace,'' as its most visible representative would say three days later-was about to assume its leadership role. White House Ghosts: Presidents and Their Speechwriters 'Each Of us changed his mind more than once that week on the best course of action to take-not only because new facts and arguments were adduced . White House Ghosts: Presidents and Their Speechwriters He had di rected his aides to keep the secrets and he had privately called upon The Washington Post and The New York Times to hold stories on the brewing crisis. White House Ghosts: Presidents and Their Speechwriters For the American Univer sity speech-and his new push for a test ban treaty JFK's solution was to lead and let the bureaucrats catch up. White House Ghosts: Presidents and Their Speechwriters And he had WHITE HOUSE GHOSTS handwritten in new lines. White House Ghosts: Presidents and Their Speechwriters ' 1 WHITE HOUSE GHOSTS The torrent of new programs also increased the need for presidential words. White House Ghosts: Presidents and Their Speechwriters 'No matter how much he was told or how much television was explained to him, he could never acclimate himself to the new media,' Kintner recalled. White House Ghosts: Presidents and Their Speechwriters SIX 'Concern for Image Must Rank with Concern for Substance'

JANUARY 18, 1969 Richard Nixon and Raymond Price finished working on the inaugu ral address at around midnight on Saturday, January 18, in Nixon's Pierre Hotel suite in New York City. White House Ghosts: Presidents and Their Speechwriters WHITE HOUSE GHOSTS at his familiar but recently obscured worst,' The New Repubfc'4ohn Os borne wrote. White House Ghosts: Presidents and Their Speechwriters When he was offered a job in New York that week, he leaped at the opportunity. White House Ghosts: Presidents and Their Speechwriters 'What we really need in this country, in this decade, and the rest of this WHITE HOUSE GHOSTS century, is not a New Deal,' Ford told the 1,300 faithful GOPers on the evening of July 3, 'but a fresh start.' White House Ghosts: Presidents and Their Speechwriters Because we have so few experienced writers, I am forced to give brand new writers fairly major speeches and hope for the best-or frantically rewrite them at the last minute. White House Ghosts: Presidents and Their Speechwriters
Reagan skipped the New York and Wisconsin primaries on April 6 and the Pennsylvania primary three weeks later. White House Ghosts: Presidents and Their Speechwriters He spoke of lim its and fallibility: 'I have no new dream to set forth today, but rather urge a fresh faith in the old dream,' he said,'adding: 'Your strength can compensate for my weakness, and your wisdom can help to minimize my mistakes.' White House Ghosts: Presidents and Their Speechwriters He focused on the theme of a 'new spirit' in the country, quoting from his high WHITE HOUSE GHOSTS school teacher and from the biblical prophet Nlicah.* White House Ghosts: Presidents and Their Speechwriters Where the early Doolittle/Fallows drafts ad dressed critics head-on, the new version was like a one-man Q&A, with the president asking and answering 'common questions' about the WHITE HOUSE GHOSTS treaties. White House Ghosts: Presidents and Their Speechwriters WHITE HOUSE GHOSTS Rafshoon geared up the administration for a big 'new foundation' publicity push; the slogan was gaining cultural traction: the political comic strip Doonesbury even devoted a week to ridiculing it. White House Ghosts: Presidents and Their Speechwriters In Jan uary, Shah Mohammed Reza Pahlevi-with whom Carter spent the 1977-78 New Year's Eve-had fled from Iran into e2ile, allowing Aya tollah-Ruholla Khomeini to return to the country from France and seize control, eventually establishing a theocracy. White House Ghosts: Presidents and Their Speechwriters 'We strongly advise WHITE HOUSE GHOSTS against another televised energy speech-unless the President has a bold, new, and ambitious policy to announce. White House Ghosts: Presidents and Their Speechwriters 'Are they important in terms of the political pecking order?' Peggy Noonan was quoted as saying in The New York Times. White House Ghosts: Presidents and Their Speechwriters
The agreement to flip on 'no new taxes' and the subsequent budget agreement-which sent GOP conservatives into fits-were the subject WHITE HOUSE GHOSTS of debate within the White House through the summer and into the fall of 1990. White House Ghosts: Presidents and Their Speechwriters
The press took note of a new, sharper tone to Bush's domestic speeches when he gave the University of Michigan's commencement address on May 4. White House Ghosts: Presidents and Their Speechwriters In addition to Kusnet, the speechwriting staff in the first year included Curiel, who had come from a journalism background that included The Washington Post, The New York Times, and ABC News, and Alan Stone, a veteran congressional staffer who had joined the Clinton campaign from the failed bid of liberal Senator Tom Harkin o£ Iowa. White House Ghosts: Presidents and Their Speechwriters 'Identify a new course that accommodates the needs the Republicans address but does it in a way that is uniquely yours.' White House Ghosts: Presidents and Their Speechwriters Clinton might have thought that the State of the Union would set a new ideological tone, but there had been no follow-up. White House Ghosts: Presidents and Their Speechwriters Jordan Tamagni, a lawyer from New York whom Morris had recruited, would also join the staff, first as a kind of office manager but working her way into speechwriting within a few months: Waldman's first big speech was the 1996 State of the Union. White House Ghosts: Presidents and Their Speechwriters Morris polled everything: Should the speech be long, like the detail-packed 1995 State of the Union, or a brief 'tone poem,' as White House press secretary Mike McCurry suggested? Morris's surveys, conducted by New York-based pollster Mark Penn, showed that people liked substance, even if it took time. White House Ghosts: Presidents and Their Speechwriters Often the speechwriters would dismiss the new language; but if they could not, if it came from too senior an aide or if they were feeling mean, they would leave it in for the president to take out. White House Ghosts: Presidents and Their Speechwriters 'If you can convince yourself, you can convince the country' On September 11, Gibson was at the Waldorf-Astoria Hotel in New York City-Bush was marking the one-year anniversary of the at tacks with a brief speech at Ellis Island-finalizing the UN speech. White House Ghosts: Presidents and Their Speechwriters Gerson called to say that there was a new piece of intelligence that might fit into the speech. White House Ghosts: Presidents and Their Speechwriters Andrew Rosenthal, `siting U.S. Troops in the Desert, President Talks Tough About Iraq,' New York Tories, November 23, 1990. White House Ghosts: Presidents and Their Speechwriters In particular, I would like to thank Bob Clark and the staff at the FDR Li brary in Hyde Park, New York; Randy Sowell and the staff at the 'I i ru- Acknowledgments man Library in Independence, Missouri; Dwight Strandberg and the staff at the Eisenhower Library in Abilene, Kansas; the staff at the JFK Library in Boston, Massachusetts; Sarah Haldeman and the staff at the LBJ Library in Austin, Texas; the staff who handle the Nixon materials at Archives II in College Park, Maryland; William McNitt and the staff at the Ford Library in Ann Arbor, Michigan; Albert Nason and the staff at the Carter Library in Atlanta, Georgia; Diane Barrie and Mike Dug gan at the Reagan Library in Simi Valley, California; and Chris Pembel ton at the Bush Library in College Station, Texas. White House Ghosts: Presidents and Their Speechwriters Kennedy, Jacqueline, 109, 145, 146 idential campaign of (1964),152n, - Kennedy, John E, 100-144 advisers of, 105-11, 109, 114-29, 163, 267 Alliance for Progress policy of, 117-18, 119,152 American University speech of (1963), 130-34,135,140,411 America's Cup speech of (1962),112n anticommunism of, 115,117-18, 133, 138-41 'ask not' passage of, 105-9 assassination of, 141, 145-48, 306-7 Bay of Pigs invasion ordered by (1961), 114-15,120,122,123,223 Berlin speech of (1963),138-41, 191-92,345,354 bureaucracy circumvented by, 115-16, 120-11,129,131-32 cabinet appointments of, 65, 106, 116, 123,126-27,132 as Catholic, 101, 103, 118,261 civil rights movement supported by, 110-11,132,134-38 corespondenceof, 124-25, 130,133 in Cuban Missile Crisis (1962), 122-29 Cuban policy of,114-15, 120, 122-29 Democratic National Convention speech of (1960), 108 domestic policies of, 110-11, 116, 123, 129,134-38 editorial revisions by, 102,109-10, 113-14,116,119,121,141-44, 202n,427n extemporaneous remarks of, 136-41 FDR compared with, 13,105, 110, 114, 121,142 foreign policy of, 98-99, 100, 111, 117-18,119,120-34,138-41 'Ich bin ein Berliner' phrase of, 139-41, 191-92,345 inaugural address of (1961), 100, 104-13,122,131,141n,142-43, 188,189-90,269,427n,491 Latin American policy of, 117-18, 119, 120, 121, 127 LBJ compared with, 150, 155, 159, 175-76,180 liberalism of, 101-2, 103, 119, 134-35 'missile gap' allegations of, 98-99 New Frontier policies of, 108, 151, 208, 283,293 Nixon compared with, 111, 141-42, 188,189-92,197,223 nuclear policy of, 122-34 P 155,156-57,183,187,188 press conferences of, 168, 180-81 press coverage of, 152, 153, 161, 163, 167,168,171-74,176,179,180-81, 187 'role of four' of, 166 second tern declined by (1968),181-87, 191,257n space program of, 171-73 speechwriters of, 142,145-87,279,406, 437 State of the Union addresses of, 148, 157,168-69,171,181-87 style of, 146,148,150--51,154-5S, 159-62,165,166,175-83 swearing-in ceremony of (1963), 145, 146 television broadcasts of, 151, 170, 179-81 as Texas politician, 147, 150, 154, 162-63,166,178-81 Truman compared with, 179,183-84 University of Kentucky speech of (1965), 157 University of Michigan speech of (1964),152-53 as vice president, 111, 123,139,145-46 Vietnam policy of, 152n, 156-57, 167-71,183-87 . White House Ghosts: Presidents and Their Speechwriters Magnmon, Warren, 109 Maguire, Charles, 175, 175,179,187 Malenkov, Georgi, 73, 77 Malinowski, Tom, 421, 451-54,46748, , 471 Mansfield, Mike, 187,198 Marsh, Jack,232,237,261,264 Marshall, Burke, 136 Marshall, George C., 53, 83, 96 Marshall Plan, 60-63, 129,263 Index Martin, Christina, 399 Martin, Jack, 84 - Martin, Louis, 110-11 Marx, Karl, 326 Maseng,Mari, 316, 322, 326, 332-33, 335, 336,360,367 Matthews, Chris, 309-10,434 Mead, Bob, 243 Meany, George, 214 Meese, Ed, 341 'Men behind the Guns, The' (Rooney), 368 Mencken, H. L., 3,95 Merino, Thomas, 418 Meyer, Karl, l I8 Mice,' 343, 346-47, 349, 361 Michel, Bob, 99, 235 Middle East, 116,291-92, 381, 394, 474, 489,491 Middleton, Harry, 175, 177, 178 Milbank, Dana, 464 Milford, James, 372-73 Miller, Emma Guffey, 52 Miller, William Lee, 102 Milosevic, Slobodan, 452-54 Mitchell, George, 376, 379 Mitchell, John, 222 Mizell, Wilmer 'Vinegar Bend,' 249 Muhammad Reza Pahlavi, shah of Iran, 298,307 Moley, Raymond, 6-7, 8, 9-12, 14-16,17, 18,21;23n,71,89,110 Molotov, Vyacheslav, 75 Mondale, Walter, 292, 293-94, 299, 301, 302,341,402,409 Monnet, Jean, 25 Montgomery, Robert, 76-77 Moore, Dick, 2 - 11 Moore, Henson, 396,397 Moos, Malcolm, 85n, 91,95-97 Moran, Robert, 457 Morison, Samuel Eliot, 63 Morris, Dick, 421-33, 436x, 438, 439,440, 441 Morrow, Frederic, 91-92, 93, 94, 161 Morse, Brad, 99 Morse, Wayne, 40 Moyers, Bill, 145-46,149,152-53,154, 159-60,162,163-64,165,168-69, 175,176,293 Moynihan, Daniel Patrick, 188, 276, 295n Mudd, Roger, 307 Muir, William, 322, 336 Murphy, Charles, 41,47-49,51, 54, 56, 63, 64-65,68,71 Murphy, Daniel, 331 Murphy, George, 231 Mutual Contempt (Shesol), 444 Nader, Ralph, 270,309 National Security Council (NSC), 114-15, 123-29,192,210-11,217,252,281, 282,308,319-20,324,325,328,339, 346-47, 357, 381, 382, 409-10, 411, 419,421,456,464-65,480 Nazism, 19-20,32,343, 381, 475, 476 Nesmith, Achsah, 270n, 271, 277, 284, 307-8 Nessen, Ron, 235n, 243, 244, 245 Neusner, Noam, 472 - Neustadt, Richard, 41, 65 'New Deal for America, A' (Chase), 6 Nix, Michele, 395 Nixon, Richard M., 188-234 advisers of, 188-92, 204,410 Air Force Academy speech of (1969), 195-99 Canadian Parliament speech of (1972), 217-18 'Checkers speech' of (1952), 192 conservatism of, 194-99, 201-5, 214, 219-20 . White House Ghosts: Presidents and Their Speechwriters 416 Nugent, Luci Johnson, 185-86 O'Brien, Larry, 148, 186 O'Donnell, Kenneth, 139 O'Neill, Paul, 238,254 Index Orben,Robert, 230-31,235,239-40,246-49, 253,256,257,258,264-65,267 Ordeal of Power, The (Hughes), 89-90 Osborne,John, 197-98,241 Pace, Frank, 66 Paine, Thomas, 255 Panama, 149,263,278,281,284-86,378-79 Panetta, Leon, 405, 430, 431 Parsons, Al, 257 Parvin,Landon,318,319n,322-23,334, 342,351-53 'Passionless Presidency, The' (Fallows), 297 Pataki, George, 470-71 Peale, Norman Vincent, 199 Pearl Harbor attack (1941), 26-27, 39, 125, 126,392-93 Penn, Mark, 438 Penny, Don, 263-64 Pericles, 105, 106 Perot, H. Ross, 399 Persons, Wilton J., 85 Pierce, Samuel, 365 Podesta, John, 445 Podhoretz,John,396 Poindexter, John, 348 Poland, 19-20,326,369,370-71,374,487n Polk, James K, 2, 134 Polke,James, 139 Pollack, John, 455 Porter, Roger, 396 Powell, Colin, 352, 356n, 357, 451, 465n, 468,471,481,484,485 Powell, Jody 271, 280, 287, 297, 300, 301, 308 Price, Raymond, 188,192, 188,192,193, 194,195, 197',199-200,205-8,209,210,211, 213,215,219,220-23,226-29 Prince,Jonathan,408n,430n,435,436, 437,438,442,446 Profiles in Courage (Kennedy), 102, 110, 202n Provost, Steve, 398-400 Pucinski, Roman, 187 Pullen, Frances 'Kaye,' 236, 250, 253 Pulliam,Eugene, 187 Qaddafi, Muammar al-, 320-21 Quayle, Dan, 462,463, 479 Quigg, Philip, 210 Quinn, Jack, 430 Quinn, Sally, 232-33 Rackleff, Robert, 293 Rafshoon, Gerald, 269, 273, 283n, 287; 290,294-98,299,300,301,302 Rather, Dan, 226,336 Rayburn, Sam, 40,52 Reagan,Nancy, 27n,315,324,336,351-52, 353 Reagan, Ronald, 312-61 advisers of, 312, 317-25, 328, 334-53 'America is back' phrase of, 347, 348 anticommunism of, 276, 313, 317-30, 343-48,354-59 assassination attempt against (1981), 316-17,320,351 Berlin Wall speech of (1987), 354-58 big government opposed by, 313, 314 Bitburg Cemetery speech of (1985), 343 British Parliament addressed by (1982), 324-26,327,346 Challenger disaster speech of (1986), 348,486 conservative support for, 276, 313, 314, 317-30,341-48,350,355-57, 360-61 D-Day anniversary ('Pointe du Hoc') speech of (1984), 337-40, 391, 419, 420 diary of, 315n, 320-21, 324, 333-34, 351,353 domestic policies of, 313, 314,315-16, 319,322,328-29,330,333,342,380, 404n,406 economic policies of, 315-16,322, 330, 342,380,404n,406 editorial revisions by, 312-15, 325, 353 European Parliament speech of (1985), 343-46 'Evil Empire' speech of (1982),325-30, 344 extemporaneous remarks of, 333-34 farewell speech of (1989), 359-60 foreign policy of, 318-21, 324-47, 351-58 as former actor, 312-13,330,340-41, 361 at Geneva summit (1985),346-47 George H. W Bush compared with, 363, 364, 365, 367, 373, 380, 381, 382,391 as GE spokesman, 312-13 'Gipper' quote of, 340141 as governor of California, 313 as 'Great Communicator,' 360-61 gubernatorial campaign of (1966), 321 inaugural address of (1981), 312-15 in Iran-Contra scandal, 351-53, 445 'message of the day' approach of, 265 Moscow University speech of (1988), 358-59 Index National Press Club speech of (1981), 319-21 nuclear policy of, 320-21, 330-32, 353-54 oratorical skills of, 312-15, 340-41, 360-61,364,408n pragmatist support for, 318-19, 324-25, 328-29,361 presidential campaign of (1976), 252, 253,257,258,259,263,285,321 presidential campaign of (1980), 308, 309-10,312,317,318,322 presidential campaign of (1984), 324, 338,340,341 press coverage of, 265, 321, 326, 329-30,333-36,345,347,348,350 at Reykjavik summit (1986), 353-54 Soviet policy of, 320-21, 324-32, 337, 339,343-48,353-54 speech cards used by, 312-13, 364 'The Speech' of, 312-13, 316, 317 speechwriters of, 137n, 265, 312-61, 365,367n,380,381,395,418,491 'Star Wars' program of, 330-32, 353 State of the Union addresses of, 323-24, 347,349-50,445 style of, 13, 27n, 180, 265, 312-16, 323-24,340-48,351-61,363,364, 408n, 418, 487 symbolism used by, 27n, 313-15, 323-24,354-58,487 television broadcasts of, 327, 331-32, 340,353 at Vienna summit (1985), 353 Reed, Bruce, 407, 424, 428, 431, 437, 438, 443-44,494 Regan, Donald, 341-42, 343, 345, 347-48, 349-50,351,361 Reich, Robert, 405 Reinsch, Leonard, 36 Republican Looks at His Parry, A (Larson), 86 Republican National Committee (RNC), 285 Republican national conventions, 3, 88-89, 9 5,108,195,262,263-64,313,338 Reynaud, Paul, 21 Rice, Condoleezza, 371, 456, 458, 465,466, 468,470,477-78,481,482,483 Richardson, Elliott, 225 Richberg, Donald, 13, 18, 21 Rich Nations and the Poor Nations, The (Ward), 153 Ridgway, Matthew, 67 Robinson, Claude, 77 Robinson, Peter, 322, 342, 354-57, 361 Rockefeller, Nelson, 190, 252 Rogers, William, 217 Rohmbacher, Dana, 318,319n, 340-41, 342,350,353,355 Rooney, John Jerome, 368 Roosevelt, Eleanor, 5, 12, 27, 119 Roosevelt, Elfott, 5 Roosevelt, Franklin D., 5-30 advisers of, 21-30 annual congressional message of (1934), 16n annual congressional message of (1936), 16 'arsenal of democracy' phrase of, 25 'Brains Trust' of, 6, 7, 13 death of, 28, 31, 433-34 Democratic National Convention speech of (1932), 5-9 Democratic National Convention speech of (1936),17-18 as Democratic Party leader, 9-10, 21 editorial revisions by, 4, 10-12, 15-19, 24,25-27,38,110,121,427 'fear itself'quote of, 12 'fireside chats' of, 14, 20, 25, 29, 36, 90, 92-93,114,213,273-74 firstinaugunl address of (1933),10-12, 14,188 'Four Freedoms' speech of (1941),25-26 Great Depression policies of, 9-10, 14, 15, 16-19, 27, 151-52, 394 gubernatorial campaign of (1928), 5-6, 7 infamy' quote of, 26-27 LBJ compared with, 151, 155 legacy of, 433-34,441 - .new White House Ghosts: Presidents and Their Speechwriters deal' phrase of, 6-7,11-12, 59-60, 151,283,293 New Deal policies of, 6-7,11-12, 13, 14,15,,16-19,21,35,48,59-60,61, 95;151-52,208,242,249-50,283,. White House Ghosts: Presidents and Their Speechwriters NEW YORK 2007 CONTENTS
Abbreviations and Glossary xi Note on Russian Spelling and Dates xv Maps xvi Introduction 3
PART ONE: LENIN'S COMMUNIST DICTATORSHIP r The First World War and the Russian Revolution z r z On the Way to Communist Dictatorship 41 3 Civil Wars in the Soviet Union 62
PART TWO: THE RISE OF GERMAN NATIONAL SOCIALISM 4 Nazism and the Threat of Bolshevism 81 g First Nazi Attempt to Seize Power 1 oz 6 Hitler Starts Over 117 PART THREE: STALIN TRIUMPHS OVER POLITICAL RIVALS Battle for Communist Utopia 131 8 Lenin's Passing, Stalin's Victory 141 9 Stalin's New Initiatives 16o 0 Stalin Solidifies His Grip 173 CONTENTS CONTENTS PART FOUR: GERMANS MAKE A PACT WITH HITLER 29 War Against the Jews: Death Squads in the East 441 30 The 'Final Solution' and Death Camps 452 i 1 Nazi Party as Social Movement 185 12 Nazism Exploits Economic Distress 198 13 'All Power' for Hitler 211 PART NINE: HITLER'S DEFEAT AND STALIN'S AGENDA PART FIVE: STALIN'S REIGN OF TERROR 14 Fight Against the Countryside 227 15 Terror as Political Practice 240 16 'Mass Operations' 253 17 'Cleansing' the Soviet Elite 267 31 Greatest Crisis in Stalin's Career 471 32 Between Surrender and Defiance 482 33 Soviets Hold On, Hitler Grows Vicious 498 34 Ethnic Cleansing in Wartime Soviet Union 511
PART TEN: FINAL STRUGGLE PART SIX: HITLER'S WAR AGAINST DEMOCRACY 35 From Stalingrad to Berlin 525 36 Stalin Takes the Upper Hand 543 3^7 End of the Third Reich 56o 18 Winning Over the Nation 285 19 Dictatorship by Consent 298 20 Persecution of the Jews in the Prewar Years 315 21 'Cleansing' the German Body Politic 331 Epilogue 579 Notes 595 PART SEVEN: STALIN AND HITLER: INTO THE SOCIAL CATASTROPHE 22 Rival Visions of World Conquest 345 23 German Racial Persecution Begins in Poland 36o 24 Hitler and Western Europe 375 25 The Soviet Response 384 26 The War Spreads 397
PART EIGHT: HITLER'S WAR ON 'JEWISH BOLSHEVISM' 27 War of Extermination as Nazi Crusade 413 28 War Against the Communists: Operation Barbarossa 429 Acknowledgments 671 Index 673 Photographic Credits 697 ABBREVIATIONS AND GLOSSARY ABBREVIATIONS AND GLOSSARY Kadets Russian Constitutional Democratic Party (liberals) kolkhoz (pl. Lenin, Stalin, and Hitler: The Age of Social Catastrophe For example, he tried to prepare popular opinion in advance of new initiatives, and when these ran up against objections, he frequently I G LENIN, STALIN, AND HITLER backed off. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Whatever Kerensky's intentions, the new quarters created a distance between 'the people' and what many considered their 'real' representatives and the provisional government. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Lenin went into hiding, aided by Stalin, who became a kind of special assis tant 3° They both branded the government the embodiment of counter revolution but were sure Kerensky would continue the war, which would inevitably end in defeat 3 ` Indeed, on July 6, Kerensky returned from the front and just days later became the new prime minister after Prince Lvov resigned in dis grace. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Kerensky named General Lavr Kornilov the new army com mander in chief but kept the portfolios of minister of war and navy. Lenin, Stalin, and Hitler: The Age of Social Catastrophe 'Revolutions,' Lenin once said, 'were festivals of the oppressed and the exploited' when the masses could be 'creators of a new social 40 LENIN, STALIN, AND HITLER order.' Lenin, Stalin, and Hitler: The Age of Social Catastrophe To judge from a memorandum issued on December 12 and pub lished in Pravda just over two weeks later, Lenin was leaning toward either abolishing the Constituent Assembly before it met or calling new elections. Lenin, Stalin, and Hitler: The Age of Social Catastrophe What was left of the tsarist armies dwindled away with the October Revolution, and the new regime had to find a way to mobilize a new force. Lenin, Stalin, and Hitler: The Age of Social Catastrophe The new Soviet government, refusing to acknowledge the serious situation, continued to export grain. Lenin, Stalin, and Hitler: The Age of Social Catastrophe New nightclubs I o 6 LENIN, STALIN, AND HITLER sprang up, sex without love became the new fashion, and the world of middle-class values went down the drain. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Our task, the mission of the National Socialist movement, is to bring our own people to such political awareness that they will not see their goal for the future in the breath-taking terms of a new Alexander's conquest, but in the industrious work of the German plow, to which the sword need only give soil .1115 Lenin, Stalin, and Hitler: The Age of Social Catastrophe 124 LENIN, STALIN, AND HITLER By mid-February 1925, only months out of prison, Hitler was laying the groundwork for a new approach to gaining political power. Lenin, Stalin, and Hitler: The Age of Social Catastrophe In the ory the Reichstag could terminate these emergency powers, but the president could stop such action by dissolving the Reichstag and calling new elections. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Goebbels was well educated and articulate and along with some new joiners more 'socialistic' than Hitler. Lenin, Stalin, and Hitler: The Age of Social Catastrophe New people began to join the NSDAP inside and beyond Bavaria. Lenin, Stalin, and Hitler: The Age of Social Catastrophe He became a prime example of a new political breed, men and women who devoted themselves selflessly to some higher cause and who were prepared to deny themselves all the worldly comforts to attain their ends. Lenin, Stalin, and Hitler: The Age of Social Catastrophe What he liked about Ekaterina was that she BATTLE FOR COMMUNIST UTOPIA 135 was not really one of the fashionable 'new women' in the movement, whom he considered amoral because of their belief in sexual freedom. Lenin, Stalin, and Hitler: The Age of Social Catastrophe 8 LENIN'S PASSING, STALIN'S VICTORY T he new Communist leaders were bedeviled by major economic, cultural, and political problems. Lenin, Stalin, and Hitler: The Age of Social Catastrophe The Politburo became the key inner circle of the most influential leaders in the new regime. Lenin, Stalin, and Hitler: The Age of Social Catastrophe A new secretariat was to have five technical secretaries to deal with routine matters, but eventually it became a key institution in charge of central administration.' Lenin, Stalin, and Hitler: The Age of Social Catastrophe 5 o 9 STALIN'S NEW INITIATIVES O n December g, 1927, Stalin gave a lengthy address to the Party congress about the future of the New Economic Policy (NEP). Lenin, Stalin, and Hitler: The Age of Social Catastrophe Applause greeted Stalin's speech, which concluded: 'We are in the process of moving from the restoration of industry and agriculture to the reconstruction of the entire national economy on a new technical foundation, at a time when the building of Socialism is no longer simply r6o STALIN'S NEW INITIATIVES IGI a prospect but a living, practical matter, which calls for the overcoming of massive internal and external difficulties.'' Lenin, Stalin, and Hitler: The Age of Social Catastrophe P f STALIN'S NEW INITIATIVES I63 The Soviet blueprint for constructing socialism was incorporated in the first Five-Year Plan (piatiletka) that began in October 1928 but was only adopted by the Sixteenth Party Conference in April 1929. Lenin, Stalin, and Hitler: The Age of Social Catastrophe The New York Times Magazine published a feature story on the project called 'Communism Builds Its City of Utopia.'' Lenin, Stalin, and Hitler: The Age of Social Catastrophe On August 23, 1929, Austin agreed to construct a gigantic factory complex and new industrial city at Nizhni Novgorod on the Volga. Lenin, Stalin, and Hitler: The Age of Social Catastrophe To provide for every need of the sixty thousand and more workers, a new city was created. Lenin, Stalin, and Hitler: The Age of Social Catastrophe There was 'no meat, no STALIN'S NEW INITIATIVES 167 cheese, no milk' in the stores, and the sale of bread was irregular.' Lenin, Stalin, and Hitler: The Age of Social Catastrophe STALIN'S NEW INITIATIVES 169 Moscow, Leningrad, and other big cities had to introduce bread rationing in the winter of 1928-29, and on February 15, 1929, the Polit buro extended it to the whole country. Lenin, Stalin, and Hitler: The Age of Social Catastrophe STALIN'S NEW INITIATIVES I'JI Everything was laid out, including the disposition of confiscated prop erty, like a military campaign 3s The chief of the secret police, Genrikh G. Yagoda, instructed his pal adins to mobilize the Chekist ranks, 'which once again have a tremen dous, difficult job ahead of them.... Lenin, Stalin, and Hitler: The Age of Social Catastrophe We are engaging in a new battle, we must wage it with minimal losses on our side. Lenin, Stalin, and Hitler: The Age of Social Catastrophe These organizations directed specific mes sages to respectable sections of the middle class, and to judge by new Party joiners, the efforts had considerable success. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Hitler's March 7, 1930, speech setting forth the new program for farmers ended on a high-sounding note: the 'crisis of the agricultural population is one part of the crisis that involves the whole population, and the National Socialist movement is fighting to free the whole country.' Lenin, Stalin, and Hitler: The Age of Social Catastrophe These men had the new ideal he wanted the industri alists to share. Lenin, Stalin, and Hitler: The Age of Social Catastrophe One of these, Alfred Hugenberg, almost brought the negotiations to a standstill by refusing to accept Hitler's one remaining condition, namely new federal elections. Lenin, Stalin, and Hitler: The Age of Social Catastrophe The president decided after all to appoint the 'Bohemian corporal' the new head of government 34 'ALL POWER' FOR HITLER 221 The Hitler cabinet was, except for two posts, dominated by conserva tives. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Hitler got the chancellorship and new elections as well. Lenin, Stalin, and Hitler: The Age of Social Catastrophe The new Reich has risen, sanctified with blood. Lenin, Stalin, and Hitler: The Age of Social Catastrophe His solution was to make organizational-administrative changes and to install new leaders in Ukraine who would turn it 'into a real fortress of the USSR, into a gen uinely exemplary republic.'' Lenin, Stalin, and Hitler: The Age of Social Catastrophe The new passport system provided a means of separating out the 'undesirables.' Lenin, Stalin, and Hitler: The Age of Social Catastrophe 5 SOCIALLY DANGEROUS AND SOCIALLY HARMFUL ELEMENTS In early 1933 Stalin had signaled a new wave of terror against the 'last remnants of the moribund classes-the private manufacturers and their servitors, the private traders and their henchmen, the former nobles and priests, the kulaks and kulak agents, the former White guard officers and police officials, policemen and gendarmes, all sorts of bourgeois intellec- 'MASS OPERATIONS' 261 affected, we have to keep in mind what statisticians call 'in-out migra tion,' that is, people who were released (because they were sick or too old) and who were replaced each year.Thus, Lenin, Stalin, and Hitler: The Age of Social Catastrophe if 400,000 left the camps and the same number of new prisoners were sent to them in any given year and if we only note the camp population on the first day of the year, we over look the fact that 400,ooo additional people had endured the ordeal. Lenin, Stalin, and Hitler: The Age of Social Catastrophe According to Wolfgang Leonhard, a true-believing Communist and 2C)() LENIN, STALIN, AND HITLER student who lived in Moscow at the time, the new decrees 'came to occupy so central a position in the life of every inhabitant of the Soviet Union, that others were hardly noticed at all. Lenin, Stalin, and Hitler: The Age of Social Catastrophe On September 20,1921, Lenin purged what he called the 'rascals, bureaucrats, corrupt or fickle Communists, and Mensheviks who put a j new coat of paint on their `facade' but are still Mensheviks at heart.'' Lenin, Stalin, and Hitler: The Age of Social Catastrophe The purges functioned to remove many of them once and for all and to bring in more enthusias- 'CLEANSING' THE SOVIET ELITE 2$I tic new people who had the energy needed to carry the revolution for ward and in just the way Stalin wanted. Lenin, Stalin, and Hitler: The Age of Social Catastrophe 41 PART SIX HITLER'S WAR AGAINST DEMOCRACY 18 WINNING OVER THE NATION T he new Hitler cabinet gathered at 5:00 in the afternoon on Janu arY 30, 1933. Lenin, Stalin, and Hitler: The Age of Social Catastrophe He was assisted by a new head of the Ministerial Office, Colonel Walther von Reichenau. Lenin, Stalin, and Hitler: The Age of Social Catastrophe General Werner von Blomberg, a well-known figure, was made the new minister of defense, chosen by the circle around Hindenburg to look after the interests of the Reichswehr. Lenin, Stalin, and Hitler: The Age of Social Catastrophe WINNING OVER THE NATION 289 ELITE SUPPORT FOR THE NEW CHANCELLOR Within a week, social consensus in support of Hitler's new government was reflected in the officer corps, which was easily won over, despite their conservative Prussian traditions. Lenin, Stalin, and Hitler: The Age of Social Catastrophe He summed up the enormous 300 LENIN, STALIN, AND HITLER support for Hitler and National Socialism as: 'The people want it!' On the afternoon of March 6, he met with Hitler to work out details for his ministry, one of the few new ones added in the Third Reich. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Also passed was the Law for the Prevention of Defec tive Offspring, which formed the basis of a new sterilization program. Lenin, Stalin, and Hitler: The Age of Social Catastrophe The new regime was clearly intent on pursuing Hitler's anti-Semitic aims. Lenin, Stalin, and Hitler: The Age of Social Catastrophe 14 The Nuremberg Laws, or Law for the Protection of German Blood and German Honor, outlawed new marriages between Jews and non- PERSECUTION OF THE JEWS IN THE PREWAR YEARS 319 Jews; forbade extramarital sexual relations between them; made it ille gal for Jews to employ non-Jewish women under forty-five as servants; and made it a crime for Jews to raise the German flag. Lenin, Stalin, and Hitler: The Age of Social Catastrophe The SD (Security Service) estimated that 'reincorpo ration' of Austria in the so-called Anschluss in March meant the gain of 'around 2oo,ooo Religion-Jews' and brought Germany's new total back to what it was in 1933. Lenin, Stalin, and Hitler: The Age of Social Catastrophe e Adolf Hitler poses with members of his new government soon after his appoint ment. Lenin, Stalin, and Hitler: The Age of Social Catastrophe What was new was not so much the attitude of the government and German society as the Third Reich's determination to act. Lenin, Stalin, and Hitler: The Age of Social Catastrophe push to use prisoners in new SS enterprises-such as the German Earth and Stone Works, founded in April 1938-came from an 336 LENIN, STALIN, AND HITLER agreement reached between Himmler and Albert Speer, the general construction inspector.' Lenin, Stalin, and Hitler: The Age of Social Catastrophe By September 1935, Himmler had come up with new missions for the camps. Lenin, Stalin, and Hitler: The Age of Social Catastrophe A sign of things to come was given by Hitler at the Nuremberg Party rally of September 1935 That rally was infamous because it introduced new laws banning mar riage between Jews and non-Jews. Lenin, Stalin, and Hitler: The Age of Social Catastrophe He was convinced, however, of the 'racial supremacy of the German 3 350 LENIN, STALIN, AND HITLER people' and believed that ultimately, 'like a god, the new human being would protect the world domination of the Germanic blood from all change.''° Lenin, Stalin, and Hitler: The Age of Social Catastrophe RIVAL VISIONS OF WORLD CONQUEST 351 NEW KIND OF WAR ON THE HORIZON The Munich conference of late September 1938 involved the prime min isters of Britain and France, along with Mussolini and Hitler. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Under the leadership of the Communist Bolshevik Party, the working people of the Soviet Estonian Socialist Republic have begun the building of a new, free, and happy life, exterminating capitalists and big landowners.' Lenin, Stalin, and Hitler: The Age of Social Catastrophe The new border in the east would be the Ural Mountains.'? Lenin, Stalin, and Hitler: The Age of Social Catastrophe The new head of government, Marshal Pietro Badoglio, THE 'FINAL SOLUTION' AND DEATH CAMPS 467 initially said he would stay in the war on Germany's side but secretly negotiated and signed an armistice with the Allies on September 8. Lenin, Stalin, and Hitler: The Age of Social Catastrophe PART TEN FINAL STRUGGLE 35 FROM STALINGRAD TO BERLIN T he front page of the New York Times on February 1, 1943, carried the story of the defeat of the Wehrmacht at Stalingrad and the capture of Field Marshal Friedrich Paulus. Lenin, Stalin, and Hitler: The Age of Social Catastrophe He said the Jews in New York, London, and Moscow had made their designs clear: 'We are determined to give them a no less clear answer. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Military counterintelligence was taken away from the NKVD and given a new name, SMERSH-the acronym for 'Death of Spies.' Lenin, Stalin, and Hitler: The Age of Social Catastrophe The New York Times issue carrying the statement also pub lished a shortened version of blunter remarks from the Soviet govern ment. Lenin, Stalin, and Hitler: The Age of Social Catastrophe 562 LENIN, STALIN, AND HITLER Despite the German military setback, from which there was no possi ble recovery, Hitler mustered the energy for a New Year's Day broad cast. Lenin, Stalin, and Hitler: The Age of Social Catastrophe What was surprising was the 'astonishingly positive reception' to Hitler's New Year's proclamation for 1945 and his 564 LENIN, STALIN, AND HITLER confidence in victory.' Lenin, Stalin, and Hitler: The Age of Social Catastrophe Cited in Boris Souvarine, Staline: Aper~u historique du bolch6visme, new ed. Lenin, Stalin, and Hitler: The Age of Social Catastrophe A Study of Collectiviza tion (New York, 1968), 241. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Sheila Fitzpatrick, Stalin's Peasants: Resistance and Survival in the Russian Village After Collectivization (New York, 1994), 204. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Cited in David J. Dallin and Boris I. Nicolaevsky, Forced Labor in Soviet Russia (New Haven, Conn., Lenin, Stalin, and Hitler: The Age of Social Catastrophe See Richard Bessel, Polit ical Violence and the Rise of Nazism: The Storm Troopers in Eastern Ger many, 1925-1934 (New Haven, Conn., Lenin, Stalin, and Hitler: The Age of Social Catastrophe Richard Bessel, Political Violence and the Rise of Nazism: The Storm Troop ers in Eastern Germany, 2925-I934 (New Haven, Conn., Lenin, Stalin, and Hitler: The Age of Social Catastrophe See Mark Mazower, Inside Hitler's Greece: The Experience of Occupation (New Haven, Conn., Lenin, Stalin, and Hitler: The Age of Social Catastrophe Pavel Sudoplatov and Anatoli Sudoplatov,Special Tasks: The Memoirs of an Unwanted Witness -a Soviet Spymaster (New York, 1994), 145. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Roger R. Reese, The Soviet Military Experience (New York, 2oo0),126-29. Lenin, Stalin, and Hitler: The Age of Social Catastrophe 533; postwar, 593 - 4; in pre-World War I Germany, 196; Russian, 67,69,155,249,356 Antipov, V, 246-•7 Antonescu, Marshal Ion, 416-17,532 Antonov, Alexander, 74, 75 Antonov-Ovseyenko,Anton,261 Antonov-Ovseyenko, Vladimir, 261 Applebaum, Anne, 584 Arco-Valley, Count Anton, 86 Armenians, 513,5 15; Turkish slaughter of, 329 Aryans, Nazi designation of, Ing,120, 122,195,309,318,414,459,527 Aryanization,322,324,399 Atlantic, Battle of the, 525 atomic bomb, 559,592 Auer, Erhard, 86 Aurora (battleship), 38 Auschwitz-Birkenau concentration camp complex, 457, 459, 461, 464-8, 521,565,566,587 Austin Company, 163-4 674 INDEX Australia, 323 Austria, 83, 96,123, 123,381, 398; Commu nists in, 88-go; concentration camps in, 340; Jews deported from, 322-5, 37 0 ,373,374; Nazi annexation of, 313 Austria-Hungary, 11,31,81-2 Axelrod, Towia, 9o Babi Yar massacre, 450,459 Backe, Herbert, 424 Badoglio, Marshal Pietro, 466-7 Balkans, 76, 382, 413, 416; Communist Party in, 76; see also specific nations Balkars, 514 Baltic States, 357, 409, 423, 430, 435, 443; liberation of, 557; postwar, 547; resettlement of ethnic Germans from, 373; Soviet occupation of, 266, 392-6,401,483,511; see also Estonia; Latvia; Lithuania Bamlag, 269 Barbarossa, Operation, 407, 410, 415, 421,424,425,429 - 40,453,481,494, 530,585; slaughter of Jews during, 441 - 51,459 - 60 Bartov, Omer, 469 Bavarian Peasant Party, 88 Bavarian People's Party, 289,300 Bavarian Reichswehr Gruppen kommando 4 (Gruko 4),91 Bavarian Reserve Infantry Regiment 16,82 Beaverbrook,Lord, 487 Bechstein, Edwin, 187 Beer Hall Putsch, 1o4,1o8,110-15, 124,325,508 Belgium, 378-80,496,415,416,483, 554; Communists in, 358; invasion of Ruhr by, 1o4-5; Jews deported from, 466,587 Belov, General P A., 496 Below, Nicolaus von, 355,526,562 - 3 Belzec death camp, 457,46o - 2,530, 587 Berchtold, Reichsftihrer SS Josef,187 Berezhkov, Valentin, 496-7 Berger, Gottlob, 454 Beria, Lavrenti P., 276, 356, 386, 395-6,401 - 3,405,408 - 9,474,4 8 3 , 484,514 - 17,550,558 Beria, Sergo, 550,559 Berlin Olympics (1936),3 1 9 -20 Berlin University, 456 Bernburg killing center, 369 Bessarabia,266,357,384,393,417, 547 Best, Werner, 215 Beutel, Lothar, 364 Bismarck, Otto von,185,3 13 Blacks (Russian anarchists), 66 Blackshirts, 102, 103,110 Blank, Alexander, 24 Blessed Virgin, Church of (Moscow), 249 Blobel, Paul, 450,463 Blomberg, General Werner von, 289, 291,309 Bloody Sunday (Germany, 1932), 209 Bloody Sunday (Poland, 1939), 364 Bloody Sunday (Russia, 1905), 26, 48, 135 Blue, Operation, 499 Bock, General Fedor von, 379-80, 426,434,436 - 38,455 Bbckel, Otto,196 Boers, 55 B6hme, General Franz, 399 B611, Heinrich, 527 Bolsheviks, 7,23,26-33,62,132,137, 141,154,166,346,581;allied inter vention against, 66; army founded by, see Red Army; assassination attempts on, 56, 57; civil service and, 142; 'Declaration of the Rights of the Toiling and Exploited Masses' of, 49; disunity among, 158; economic vision of, 189 (see also Five-Year Plan; New Economic Policy); efforts to export revolution by, 73, 85-6, 157, 591; eugenics and, INDEX 675 332; Goebbels and, 126; Hitler's hatred of, 1 2 -1 4,352,361; Jewish, 67-8, 90, 248-9 255, 593 (see also anti-semitism, anti-bolshevism and); Kronstadt mutiny against, 74-5; Nazi propaganda against, 193, 193,216, 217, 291, 295, 313 (see also 'Jewish Bolshevism'); 1905 conference of, 136; non-Russian, 139; peasants and, 42, 63, 144 (see also dekulakiza tion); and post-World War I German radicals, 83-5, 87; repres siveness of, 3, 9, 43-4,46-8,52,54 (see also Cheka; GPU; NKVD; OGPU); resistance to, see Russian Civil War; seizure of power by, 4-5, 44-6, 111, 580 (see also October Revolution) Bolshoi Ballet, 488 Bonhoeffer, Dietrich, 340 Boris III, King of Bulgaria, 418-19, 532 Bormann, Martin, 366,445, 455, 577 Boulder, Philipp, 366-9 Bracher, Karl Dietrich, 223 Bracht, Fritz, 566 Brack,Viktor,366,368 Brandler, Heinrich, I o6, 112 Brandt, Karl, 365,367 Brauchitsch, Field Marshal Walther von,35 2 ,3 6 3,369 - 71,376,380,422, 4 26 ,43 8 Braude,Ilya,272-3 Braun, Eva,576,577 Brest Litovsk,Treaty of, 51, 66,483 Brezhnev,Leonid,166 British Expeditionary Force, 380 Bromberg massacre, 364 Bruckmann, Hugo, 187 Brundage, Avery, 319 Briining, Heinrich, 201-5, 209 Brusilov, Aleksei, 31 Bubnov, Andrei, 35 Buchenwald concentration camp, 355, 326, 338, 340, 341, 369, 566, 567 Buddhists, 513 Budenny, Marshal Semyon M., 65, 473 Bukharin, Nikolai 1., Lenin, Stalin, and Hitler: The Age of Social Catastrophe 386,409 Milchakov, Aleksandr, 584 Military Revolutionary Committee (MRC), 35 - 8,46, 139 Miliukov, P A. (Kadet Party leader), 22 Ministerial Defense Council, Ger man, 369 Mittlebau-Dora concentration camp, 341 Mogilev death camp, 457 M6hl, General Arnold von, 91 Moiseyev, General Mikhail A., 585 Moldavia, 395,483 Moldenhauer, Paul, 203 686 INDEX Molotov, Vyacheslav M.,144, 152, 153,162,229,381,401-2,413,556, 575; appointed commissar of foreign affairs, 356; dekulakization cam paign of, 170, I71; and famines, 167, 228, 232, 248; and forced labor for canal projects, 177, 257; and Ger man invasion, 407,409,47 1- 4, 482,483,492; and invasion of Poland, 385; non-aggression pact negotiated by, 356 - 8 and occupation of Baltic States, 392-4; and purges, 273,278; terror defended by, 251-2; war crimes trials proposed by, 547 Mommsen, Hans, 213, 307 Montgomery, Field Marshal Bernard, 561,568 Morell, Theo, 365 Morgenthau, Henry, 559 Moscow, battle for, 487-90, 492-6, 498 Moscow Club of the Nobility, 02 Moscow Committee of Public Safety, 45 Moscow Declaration, 548 Moscow University, 488 Moscow-Volga Canal (Dmitrovsky Canal), 256-7 Moskalenko, Marshal Kirill S., 483 Mtihsam, Erich, 9o Miiller, General Eugen, 425-6 Miiller, Heinrich, 373, 445 Miiller, Hermann, 200 Muller, Hermann J., 332 Muffler, Joseph, 289 Muller, Karl Alexander von, 91, 114 Munich conference, 314, 324, 351 Muslims, 513-i6 Mussolini, Benito, too, 117, 123, 216, 354, 531 - 2, 534; death of, 576; fall of, 466-7;Franco supported by, 359; Greece invaded by, 397; at Munich conference, 351; rise to power of, 102-3,110-13,118,212,217 Napoleon, Emperor of France, 259, 290,430,476,535 - 6 Nashkoyev, Murad, 517-18 National Socialist Doctors' Union, 195 National Socialist German University Student Group,192 National Socialist German Workers' Party (NSDAP), see Nazi Party National Socialist Women's Group (NS-Frauenschaft),195, 304-5 Navy, Soviet, 476 Nazi concentration camps, 113, 113,319, 337-41,353,360,521,529,574,584, 589;asocialsin,335,338-9,587 evacuation Of, 565-7; gassings in, 367 - 9,399,529; Jews in,326,335, 338, 339, 399, 587 (see also death camps); political prisoners in, 302-3, 311,36o, 541, 587; Poles in, 339, 364, 370; see also names of specific camps Nazi Party, 104-10,117,1ill, 124-27, 185 - 97,297,309,443,527,532, 540-1, 582,585; 'actions' against Jews by, 315-18,324,326; agricul tural program of,198-2oo;annual commemorations of, 325, 376, 459, 508,526; anti-Semitism and anti Bolshevism of,98-1o1,1o8,Ir8-19; aristocratic support for, 293; attempted putsch 0£,110-15,124; charities of, 327; doctors in, 293-4; drumhead courts of, 573-4; eco nomic policy of, 293; in elections, 196,201-6,214,217,287,295, 299-3oo; escalation of actions against Jews of, 269; financing of, 186-7; foundation Of, 93-4;Fuhrer cult in, 123; Himmler's speech on extermination of Jews to, 540-2; justice system purged by, 307-8; Ludendorff as candidate for, 125; Nuremberg rallies of, 192, 194 - 5, 313,320,333,338;organizational structure of,188-9,191,194;para- INDEX 687 military groups of, see SA; SS; platform of, 95-8; police and justice system of, 335; popular support for, 303-5,308,312; propaganda of, 189, 193-4; publishing house of, 118; and Reichstag fire, 298; purge of, 16; removal of ban on, 124; rise to powerof,118,124,211-12,216-i9, 285 (see also Hitler, Adolf, appointed chancellor); speakers' school of,I9o-1;Strength through Joy program Of, 3o5-6;suborganiza tions of, 195; text of, see Mein Kampf, torture cellars of, 303 Nazi-Soviet pact, 348,354-9,361, 384, 392,415,471 Nebe, Arthur, 373,45 1 Netherlands, 378-So, 4o 6 ,574 - 5; Jews from, 4 66 ,534 , 587; SS recruits from, 415 Neuadel aus Blut and Boden (Dam), 199 Neuengamme concentration camp, 341,369 Nevsky, Alexander, 503 New Economic Policy (NEP), 75, 76, 143-6,I54,I58,i6o,16i,i65,i68 New YorkAmerican, 196 New York Times, The, t 11, 476, 525, 530,552;Magazine, 164 Nicholas 11,Tsar,21-3,99,136,271 Niekisch, Ernst, 88 'night of the long knives,' 2 1 9,3 10 Nikolaenko,Polia,278-9 NKVD,46-7,238-9,243,266,271, 2 74,4 0 3,450,483,502,540; in Baltic states, 394-6; in Byelorussia, 391; camps administered by, 58, 59,177, 2 6 2 , 2 64,479,589; during German invasion, 478-9,489,490,493;estab lishment of, 46; ethnic cleansing by, 51 2 ,5N,50-i8; in Great Terror, 245-7,253-6,261; OGPU incorpo rated into, 237-8; in Poland, 386,388; purges and, 275,276,278;reorgani zation Of, 529;in Ukraine, 245,261, 391 Nolte, Ernst,13 Normandy invasion, 551 North Africa campaign, 433, 438, 509, 525 North Caucasus, Revolutionary Committee of the, 71 Norway, 379, 415, 587 Noske, Gustav, 87 'November criminals,' 83, 105, 202-3 Nuremberg Laws (I935),318-z9,324, 419 Nuremberg trials, 354,556 October (film), 38 October Manifesto (1905),135 October Revolution, 7,24,29,34-40, 49,74,180,274,441,583;anniver sary Of,59,1o6,112,159,165,394-5, 402,491,494; consolidation of Bolshevik power in, 41-3; creation of Red Army following, 6o; distribu tion of land to peasants during, 136; events leading to,29-33;French Revolution as inspiration for, 301; resistance to, 44-6; Stalin during, 138 OGPU,173-7,227,229,234,236-8, 242 Okhrana (Tsarist secret police), 24, 48,540 OKW, see Wehrmacht, High Com mand of Old Bolsheviks, 261, 280 Olyanov, Alexander, 24 Olympic Games, 319-20 Omsk troika, 245 'On the Protection of the Property of the State Enterprises, Collective Farms, and Cooperatives and the Strengthening of Public (Socialist) Ownership' (1932 law), 229 688 INDEX Operation Barbarossa, 407,4 10, 415, 421,424,425,429 - 40,453,481,494, 530,585; slaughter of Jews during, 44I - 51,459 - 6o Operation Blue, 499 Operation Citadel, 530-1 Operation Harvest Festival, 539-40 Operation Marita, 397-8 Operation Overlord, 545,550 Operation Reinhard, 462 Operation Torch, 5o8 Operation Typhoon, 435 Operation Uranus, 507 Ordzhonikidze,Serge, 71,163,270, 273 Orgburo (Organization Bureau), 146-8 Orth, Karin, 303 Orthodox Church, 16, 248, 249, 263, 419,532 Orwell, George, 17 Ossietzky, Carl von, 297 Oster, General Hans, 340 Ostroumova-Lebedeva, Anna Petrovna, 492 Oumansky, Constantine, 485 Palace of Soviets (Moscow), 258 Pale of Settlement, 67 Panther tanks, 530 Papen,Franz von,205,209,210, 212-13,219-23,286-8,296,298,300, 309 Paris Commune, 27, 28, 248 Pasternak, Boris, 273 Paul, Prince of Yugoslavia, 397-8 Paulus, Field Marshal Friedrich, 509, 525 Pavlov, General Dmitri G., 473 - 4, 478 People's Commissariat for Internal Affairs, see NKVD People's Commissariat for State Security (NKGB), 529 People's Court, German, 340,585 Perekovka (newspaper), 257 Petacci, Clara, 576 PEtain,Philippe, 419,420,501 Peter the Great, Tsar, 163 Peters, I. K., 56 Petrovsky, G.1, 57 Philippines, American concentration camps in, 55 Pilsudski, Marshal J6zef, 73 Podlubny,Stepan,243 pogroms, 6,69; Nazi, 325 - 9,398 - 9; postwar, 390 Pohl, Oswald, 340 Poincar6, Raymond, 104 Poland, 43,337,339,355;efforts to export Bolshevism to, 73, 75,100, 149,345; ethnic cleansing in, 363-4, 3 6 7,3 6 9 - 74,459,468,585,587; Frontier Defense Corps (KOP) of, 385; German invasion and occupa tion of, 348,351-6,360-39 377, 381, 384,421,430,433,441,443,444,446, 461, 465,513,551-4 (See also Gen eral Government); liberation of, 557, 558,564;postwar, 546-7,552 - 4,558, 592-3; Soviet zone of occupation in, 357,358,364,371,373,384 - 91,394, 395,401, 450,501,511,532 Poles: Nazi annihilation policies against, 339,36o,363 - 4,367,369, 373 - 4,395,553 - 4; Soviet terror against, 254-5,3649385-91 Polish Home Army, 552-4 Polish Military Organization (POV), 254 Politburo, 9,131,146-5o,152,157,158, r8o,182,238,581,593;canal projects approved by, 256,259; cleansing in occupied territories authorized by, 386; Commission for Judicial Affairs of, 280; concentration and forced labor camps created by, 59,175-7; creation of, 146-7; in dekulakization campaign, 171; grain shortages and policies of,167-9,228,234,239; and German invasion, 410,472-4; Jewish INDEX 689 members of, 68; juvenile delin quency policies of, 243; KPD and, lo6;at Lenin's death, 155;national minorities persecuted by, 253-6; secret police and, 145, 239; purges approved by,275,276;terror prac tices of, 245, 248, 279 Poniatowa death camp, 539 Popular Enlightenment and Propa ganda, German Ministry of, 300 Posen concentration camp, 367 Poskrebyshev,Aleksandr N.,473 Potsdam Conference, 590,592 Pozdnyakova, Yulia, 565 Pravda, 28, 46, 49,156,165,181,19o, 229,503,594 Prevention of Defective Offspring, Law for (Germany, 1933), 302, 333 Prosveshchenie (journal), 138 Protection of German Blood and German Honor, Law for, see Nuremberg Laws Protocols of the Elders of Zion, The, 68,99,534 Provisional All-Russian Government, 64 Prussian Political Police, 298 Pyatakov, Georgy L., 151, 159, 270-3 Quebec Conference, 559 racial hygiene, 332-4 Radek, Karl, 84, 86,1o6,159, 1o6,159,270,272 Radio Moscow, 552,553 Raeder, Admiral Erich, 290,379 Rasch, Otto, 449 Rath, Ernst vom, 325,327 Ravensbriick concentration camp, 34 1 ,369 Red Army, 6o,1o7-8,155,234,272-3, 345,405-6,417,583; advance on Germany of, 557, 558, 561, 563-65, 568,571,577;anniversary of found ing of, 567; atrocities committed by, 570-3; in Baltic states, 395,401; casualties Of, 432,433,435,440,491, 498--9; in civil war, 6o, 64-6,261; commissars of, 504; concentration camps liberated by, 565, 589; Cos sacks and, 70; counteroffensive against Germans of, 438-4o, 498-9, 502 - 3,543 - 45;dekulakization carried out by, 1 7 2 ; deserters from, 6o, 480-1; disciplinary measures imposed on,487-8,5o5;establish ment of, 46,6o; expulsion of mem bers of ethnic groups from, 514-16; Finland invaded by, 392 - 3,401; and German invasion, 409, 410, 420, 429, 43 0 ,43 2- 40,442,449 - 50,484,495; Gulag prisoners as volunteers in, 519; at Kursk, 530-1; Main Political Directorate of, 478,48o; Nazi propa ganda against, 214; pogroms carried out by, 68; Poland attacked by, 362, 385,388,401; prisoners of war from, 432 - 34,436,473,480,505,588-90; Propaganda Department of, 477; purges Of, 275-6,349,404,533,540; rallying of support for, 476,505; reinforcements from Siberia for, 416,437; at Stalingrad,5o6-8,526, 528; tanks Of, 475,477,498,530-1; territories liberated from Nazis by, 521, 529,535,555,591; and Warsaw uprising, 551-4 Reder, Rudolf, 462 Red Guards, 37, 42, 65 Red Star, 503,504 Red terror, 56-9,65 Reed, John, 39,43 Reich Committee for the Scientific Registration of Serious Hereditarily and Congenitally Based Illnesses, 365 Reichenau, Field Marshal Walther von, 289, 291,445 Reichsbank,200 Reichsbanner Schwarz, Rot, Gold (Reichflag Black, Red, Gold), 207 690 INDEX Reich Security Main Office, 408,454 Reichslandbund (Reich Agrarian League), 294 Reichstag,83,186,200,201,205,212, 215,219,220; captured by Red Army, 57 r; decline of legislative power Of, 206; elections of members of,I18,189--90,204,214,217,312; enabling law in, 286, 287, 300 - 1; fire in, 298 - 300,304,3o6 - 7; Hitler's speeches to,320,371,375;Versailles Treaty opposed by, 105 Reichswehr, 110, 289; Bavarian, 112, 114 Reinhardt, Fritz, igo-91 Remnick, David, 584 Reparations Commission, 104 Republicans, Spanish, 313 Restoration of a Professional Civil Service, Law for (Germany, 1933), 30'7 Revolutionary War Council of the Republic, 65 Revolutionary Workers' Council, 86 Riabtsev, K. L, 45 Ribbentrop,Joachim von,356-7,413, 445,468,508 - 9 Ritter, Robert, 334,337 Ritter von Lech, Field Marshal Wilhelm, 438 Rittersporn, Gabor Tamas, 521 Robespierre, Maximilien de, 159 Rodichev, F. I, (Kadet Party leader), 22 Rodzianko, Mikhail V, 23 R6hm, Captain Ernst, 97,110, 111, 113,187-8,2o8,3O9,3IO Rokossovsky Marshal Konstantin K., 551-3,590 Roma, see Gypsies Romania, 73,89,100,373,393,431, 587; mass killings of Jews in, 416-18, 441; postwar, 555,592; Soviet coun teroffensive against, 509,532,554 ROmanOVS, 22, 23, 27, 28, 65, 68, 99 R6meris, Mykolas, 395 Rommel, Field Marshal Erwin, 16, 438,509 Roosevelt, Eleanor, 594 Roosevelt, Elliott, 548 Roosevelt, Franklin D, 439, 484 - 7, 526,543-8,550,552 - 9,569,591; death o$ 570,592 Roosevelt, Theodore, 331 Rosenberg, Alfred, 99,432 Rosenberg, Arthur, 84-5 Rotefrontkampferbund (Red Veter ans' League), 207 Royal Air Force, 500 Rudin, Ernst, 333 Rudnev, V. V., 45 Rundstedt, General Gerd von, 379, 38o,438 Russian Civil War, 3,6o, 62-77,140-2, 148,171,172,261; de-Cossackization in, 70-2; famine during, 74-6; pogroms in, 6,69 Russian Federation, 148,149,177,241, 249 Russian General Staff, 36,37 Russian Revolution, 3-5,7,85,88,99, 102,120, 141, 148,308,311; export of, 68,73; factionalism and, 126; neces sity of repression to maintain, 252; Of1905,26-7,48,135; of October, 1917, see October Revolution Russian Social Democratic Labor Party (RSDLP), 23,26,29,132,137; All-Russian Conference of, 136; factions of, see Bolsheviks; Menshe viks ; 'Unity Congress' o$ 27 Russo-Japanese War, 135 Rykov,AlekseiL,269,273,274,581 SA (Sturmabteilung; Brownshirts), 107,110,187-8,193, 207, 216, 220, 291,3o4;banned by Hindenburg, 209; in Beer Hall Putsch, 114; clashes between Communists and, 195, 209-11,292,295,303;deputy police from ranks Of, 296; founding of, 187; INDEX 691 funerals of leaders of, 295-6,532; and Hitler's appointment as chan cellor, 222; Jews attacked by, 215, 315,316,324,326; purge Of, 309-10; rebellion against Nazi Party by, 207-8 Saarland, return to Germany of, 311-12 Sachsenhausen concentration camp, 326,338,341 St. Petersburg University, 24,25 Sapir, Boris, 59 Savior in the Wood, Church of (Moscow), 258 Schacht, Hjalmar, 200 Schaeffer, Fritz, 289 Scheidemann, Philipp, 83, 87, 94 Scheubner-Richter, Max Erwin von, 99,111,113,115 Schirach,Baldurvon,192,534 Schirach, Henriette von, 534 Schleicher, Kurt von, 204-5, 209, 211, 212,219,220,310 Schr6der, Kurt von, 2I9 Schr6der, Ludwig von, 399 Schulenburg,Friedrich Werner Graf von der, 471 Schutzformationen (Schufos;Protec tive Formations), 207 Schwarz, Franz Xaver, 187 Schwede-Coburg,Franz,366 Schwerin von Krosigk, Lutz Graf, 221 Scott, John, 263 SD (Sicherheitsdienst),324,326-8, 352,353,363,369,374,398,421-2, 467 Sebastian, Mihail, 416-17 secret police: Nazi, see Gestapo; Soviet, 161,172,175,249(see also Cheka; GPU; NKVD; OGPU) Seeckt, General Hans von, I12 Seifert, Gustav, 188 Seisser,Hans Ritter von, 112-14 Semlin concentration camp, 399 Serbia, 398,399,415 Serebriakov, Leonid, 270,272 Serebrovsky, A. S., 331-2 Seytmuratova,Ayshe,516 Shaposhnikov, Marshal Boris, 401, 492 Sharypina, Yelizaveta, 491 Shaw, George Bernard, 260 Shchastny,Admiral A. M., 51 Shcherbakov,Aleksandr,493 Sholokhov, Mikhail, 234,273 show trials, 145, 1 61 - 2,269-76,279, 347 Shtemenko, General S. M, 504 Shulgin, Vasily, 22 Simonov, Konstantin, 590 Sinta,see Gypsies Slovakia, 415,466 SMERSH, 529 Smolensk City Party Committee, 268 Smolny Institute, 32, 36, 37, 41 Sobibor death camp, 457, 460, 462, 539,587 Sobolev, Party Secretary, 254 Social Democratic Party of Germany (SPD),104,113,124,219,2961-7,312; banning of, 301,357; in elections, 125,18q,t9o,196,204,2o6,217,299; Enabling Law opposed by, 301; and Hitler's appointment as chancellor, 221; 'hunger government' protested by, 201; information service of, t91; Nazi violence against, 296; Nazi propaganda against, 214; paramili tary groups of, 1 95, 207; persecution of, 306; Reichstag fire and, 298,299; trade union allies of 105,187 Socialism in one country, 157-8 'Socialist Fatherland in Danger' decree,50 Socialists, 5,17,26-30,32,40,43,49, 54,61,293,301,302,585;agrarian, 25; anti-Bolshevik, 56; anti-Semitism and, 67,328,329; Communist oppo sition to, 190; fundamental tenets of, 142; Hitler's view of, loo, 1o9; Ital ian, 1o3; nationalism debated among, 138; paramilitary groups of, Ito;peasantry and, 143;Polish, 255; 692 INDEX Socialists (continued) in post-World War I Germany, 84-5, 90,92; propaganda against, 91;in resistance to October revolution, 46; underground, in Nazi Germany, 310-14,323,325,329,376 - 7; see also specific parties Social Revolutionary Party, Russian, 33, 34, 39, 42,44, 45, 72 Sokolnikov, Grigory, 35, 270, 272 Solovetski Monastery, 249 Solovki concentration camps, 59,176, 259 Solzhenitsyn, Aleksandr, 251, 259, 519-21,583-4 Sonnenstein killing center, 369 Sorge,Richard,4o8 South Africa, 55 Soviet Academy of Sciences, 488 Soviet Writers' Congress, 258 Sovnarkom (SNK), 42-3,47,49,62, 64,147-8,182,581;capital punish ment approved by, 51; civil liberties curtailed by, 43-4; concentration camps created by, 56,176; national ization of banks by, 45; OGPU and, 175; Stalin on, 152, i8o; terror decree of, 57; Trotsky and, 154 Spain, 416; civil war in, 313, 321, 359 Spanish-American War, 55 Spartacusgroup, 84,86-7 Special Action 1005, 463 Speer, Albert, 336, 341, 381-82,419, 526, 540, 541, 559, 574 Spellman, Francis, 547 Squadre d'Azioni, see Blackshirts SS (Schutzstaffel),2o7-8,216,220, 354, 362, 400, 532, 540, 566, 569; at Auschwitz-Birkenau,465,466; banned by Hindenburg, 209; brutal ity toward Jewish women of, 534; Death's Head Units, 353,355; deputy police from ranks of, 296; doctors in,369;founding of, 18 7; ghettos destroyed by, 537; Himmler appointed leader of. Lenin, Stalin, and Hitler: The Age of Social Catastrophe 401,406,408,409,471 - 3,481 Tito, Marshal Josip BrOz, 398, 588, 591 Todt, Fritz, 294 Toller, Ernst, 9o Tolstoy Alexei, 273 Tomsky Mikhail, 269 Traibman, R. M., 254 Trans-Siberian Railway, 64 Transcaucasian Federation, 148-9 Trawniki camp, 539 Treblinka death camp, 460, 521, 536, 538,539,587 Tripartite Pact (r940),413,419 694 INDEX Trotsky, Leon, 9,10,23,85,io6,345, 581; antagonism between Stalin and, 44,64,139 - 40,146,151-5, 157-6o; Central Committee con demnation of, 153-4; concentration camps created by, 55-6; curtailment of civil liberties supported by, 43-4; Jewish background of, 68,go,155;in Menshevik faction, 135 - 7,154 - 5; New Economic Policy opposed by, 145,146,158,16o;in October Revo lution, 35, 36, 38, 39,113; in Polit buro,147;purges of former supporters of 268-71,274,280; Red Army and, 6o, 64, 68; 'Socialist Fatherland in Danger' decree of, 5o; terror methods advocated by, 52 - 4 Trotskyism or Leninism? Lenin, Stalin, and Hitler: The Age of Social Catastrophe WA R AND DECISI ON Inside the Pentagon at the Dawn of the War on Terrorism


Douglas J. Feith





HARPER NEW YORK . War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism President Bush believed he could terminate the 1972 Anti-Ballistic Missile Treaty, build up our missile defenses, and work to enlarge NATO without reviving the Cold War or starting a new arms race. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism We sub scribed to the New York Times and believed it, and during the Vietnam War our views on the conflict reflected the influence of the Times's edito rials. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism These were intellectually prominent people who represented an important new element in American conser vative politics. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism This group included many of the most active and outspoken supporters of the new president: Eugene Rostow, director of the Arms Control and Disarmament Agency; Richard Perle, Assistant Sec retary of Defense; Jeane Kirkpatrick, Reagan's Ambassador to the United Nations; William Bennett, 'drug czar' and later Secretary of Education; Elliott Abrams, Assistant Secretary of State; Frank Gaffney, Deputy Assis tant Secretary of Defense; and others. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Meanwhile, President Reagan had appointed a new legal adviser at the State Department, Judge Abraham Sofaer, and he and I were able to bring Weinberger and Secretary of State George Shultz to agreement on the issue. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism When Rumsfeld was faced with a large new issue, he would begin 48 WAR AND DECISION CHANGE THE WAY WE LIVE 49 weapons of mass destruction. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism By the end of December 2001, Hamid Karzai had become head of Afghanistan's new provisional government, selected by Afghans at a conference organized by the United Nations and supported by the Bush Administration. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism He spent a lot of time discussing concepts with them and often reacted to new proposals especially war plans-by demanding (in his characteristic fashion) to know the 'key assumptions' behind them. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism On October 26, the New York Times reported that Northern Alliance commanders were disparaging United States airpower. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Soon, a new credibility gap will emerge as the Pentagon attempts to massage the news.' War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism New goals now looked readily achievable: opening the land bridge to Uzbekistan, increasing the flow of humanitarian and other supplies into Afghanistan, and building on the momentum to liberate other cities. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism A reasonably strong Afghan government, based on a new constitution and legitimated through elections, would set back the cause of the Islamist extremists. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism When Chairman Karzai visited us at the Pentagon on January 28, 149 150 2002, Rumsfeld asked about Afghan attitudes toward a new army. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism The United States moved in fits and starts to create the new army, eventually bringing a capable force into being. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Much was destroyed or made inoperable and the rest was either incorporated into the new Afghan army or put under guard. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Some were absorbed as individuals into the new Afghan military or police forces, and some found other jobs in or out of the government. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism The tawdry recklessness of this infla tionary process led to comments like those of cable television talk show host Chris Matthews, who announced: 'The Pentagon has created a new Office of Strategic Influence which plans to put out false news stories to the world's newspapers. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism A Washington Post editorial declared that no problem 'is more dangerous-or more urgent-than the situation in Iraq': The New York Times sounded similar alarms. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism A year later, the UN Security Council adopted yet another resolution, putting UNSCOM out of its misery and replacing it with a new organiza tion called the United Nations Monitoring Verification and Inspection 198 Commission (UNMOVIC). War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism 302 Libby had made: that there was more at issue than getting Iraq to agree to new inspections. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism 314 Rumsfeld acknowledged in his memo that a new resolution could serve a useful purpose by helping us recruit members for our military coali tion. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism The key was cooperating with the weapons inspectors enough to head off a credible accusation that Iraq was in 'material breach' of this new resolution. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism The array of new special committees created in the summer of 2002-the Iraq Political-Military Cell, the Executive Steering Group, and several others-remained active, and they were joined by new interagency teams created to develop plans for relief and reconstruction.* War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism A radical overhaul would be required once Saddam's regime was ousted, and it was far from certain that anyone could actually reform so sick and malformed an institution and give it a professional cul ture suitable for a new, free Iraq. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism They could advise U.S. officials, civilian and military, who had to vet Iraqis for jobs in the new government. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Rumsfeld wanted to strike the balance between promptly recognizing a new, free Iraqi government and performing due diligence on the initial leadership. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Those elections would produce a new Iraqi leadership that would be truly representative. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Fleshing out the civilian reserve corps idea became, at my urging, a 452 responsibility of the new office for stabilization and reconstruction at the State Department. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism But Bremer's article shed new light on his thinking. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism David Sanger of the New York Times claimed that the Kay Report's 'findings support the claims of critics, including Democratic [presidential] candidates, that Mr. Bush used dubious intelligence to jus tify his decision to go to war.' War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism If a new Iraqi government 'extends its control over the country, we will have to pack our bags and break camp for another land,' Zarqawi concluded, complaining that he was 'racing against time.' War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism If and when new major terrorist attacks occur in the United States, the public will reexamine the Bush Administration's strategy for the war 524 WAR AND DECISION on terrorism. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism ' We can do this the easy way, or we can do it the hard 23 Aug 02 Amnesty and Regime Change • Cooperate fully with any South Afdca-style 'Truth and Iteeom:iliation' commission, or similar body, that maybe established by the new Iraqi government. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism alaing m aid and govaaoee in the pat-Libaaiaa pwiod DRT = Declassification Review Team OSD/SP/NESA = Office of the Secretary of Defense/Special Plans/Near East South Asia APPENDIX 9 Iraq Interim Authority Implementation Plan Office of the Under Secretary of Defense for Policy Memo, April 29, 2003 DRAFT/ FOR OFFICIAL USE ONLY Iraqi Interim Authority (11A) Implementation Plan ME, Policy 29 Alan 2003 soopmEn IAA Overview The Iraqi Interim Authority (IAA) would serve as the instrument of Iraqi national leadership in the period before the ratification of a new Iraqi Constitution and the free election of a new Iraqi government. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism 580 ENDNOTES TO PAGES 182-186 182 'eager to ease inspections and sanctions': Editorial, 'Drifting to a New Iraq Policy,' New York Times, August 12, 1998, p. Al 8. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism See North Atlantic Treaty Organization Negroponte, John, 301 neocons(neoconservatives): Bush and, 62 defined, 35 democracy promotion by, 234, 237 Iraqi opposition and, 397, 399 media and, 388 Saddam Hussein and, 183, 195 Netherlands, 396 Newbold, Lieutenant General Greg, 104 New Iraqi Army, 43411 New Iraqi Corps, 434, 434n, 435 The New Republic, 176 Newaweek, 487, 490 The New Yorker, 116-117, 261, 29411, 304 New York Those: on Faith and CIA, 32311 Feith as reader of, 24 on Iraqi WMD, 182, 343-345, 352 on Iraq Stabilization Group, 469-470 on Libyan school computer deal, 17211-17311 on OSI, 172-176 on Protocol I, 40 on U.S. airpower, 124, 12411 Nidal, Abu, 187 9/11. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism He even suggested-in a 2006 op-ed in the New York Times, no less-that the world should allow Iran to get the Bomb. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... I flew back to New Mexico still feeling that it wasn't real, because there were men who had survived the bombing who weren't identified for a long time, who were airlifted to a hospital in Germany or somewhere. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... 142 11 INSIDE THE REVOLUTION centers throughout American cities such as Washington, D.C., New York, Los Angeles, Oakland, Chicago, Dallas, and Houston. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... He permitted vir tually no serious and lasting reforms at home; nor did he launch any new wars abroad. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... 'Today is the beginning of a new political era,' Ahmadinejad declared upon learning of his astounding victory. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... In their Iraq Study Group Report released in 2006, for example, for mer secretary of state James A. Baker III, former House Foreign Affairs MAKING WAY FOR TNF MANW 11 108 Committee chairman Lee Hamilton, and a distinguished group of for eign policy veterans argued the following: 'The United States must build a new international consensus for stability in Iraq and the region. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... But the new estimate declares with `high confidence' that a military-run Iranian program intended to transform that raw material into a nuclear weapon has been shut down since 2003, and also says with high confidence that the halt `was directed primarily in response to increasing international scrutiny and pressure. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... And in a rare unanimous convergence of agreement, the editorial pages of the New York Times, Wall StreetJournal, and Washington Post expressed similar doubts. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... He completely revamped the training meth odology for new Muslim clerics in the kingdom, requiring them to be schooled in the virtues of Christianity and Judaism and the theology 'ISLAM IS THE ANSWER, BUT ARAB IS NOT THE WAY' 11 225 of the Reformers. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... 230 11 INRIOE TIE REVOLITION i She praised Turkey as 'one of the true success stories of democratic governance in the Muslim world' and praised Qatar for 'struggling to build a democracy,' noting that in 1999 the emir of the tiny Persian Gulf country 'allowed local elections in which women could vote and run for office' and in 2005 created a new constitution that allowed for a unicameral legislature. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... And not just by the Rank-and-File processing the debate as if watching a championship tennis game at Wimbledon-turning their heads from one side to the other and back again-but among some Radicals as well, those whose consciences are burning and whose eyes reflect a growing horror as they see what they are doing in a new light and wonder if perhaps God is not in all this bloodshed and hatred after all. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... U CHAPTER SIXTEEN THE DEFECTOR A Khomeini heir's stunning call for democracy and reform ON SEPTEMBER 26, 2003, the grandson of theAyatollah Khomeini a highly respected Shia cleric in his own right-calmly stood up before an audience in Washington, D.C. He looked out over the crowd, took a deep breath, and then, speaking through an interpreter, denounced the e Islamic Revolution, said it was time to usher in a new era of freedom k and democracy in his country, and urged the Bush administration to mobilize the American people to overthrow the Iranian regime much as Winston Churchill had mobilized the British to destroy Adolf Hitler. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... at an international donor's conference in Tokyo, where he managed to per suade donors to pledge more than $4 billion to help rebuild Afghanistan ' ' NARZAI'S MISSION 11 278 reported the BBC, describing the new president as 'charismatic' and a `shrewd statesman' with impressive diplomatic skills.' Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... We, the Afghan people, have also enshrined these divine rights in our new Constitution. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... 284 11 INSIDE THE REVOLUTION Senate Armed Services Committee chairman Carl Levin, the Michi gan Democrat, became a particularly harsh critic following that speech, as did Senator Hillary Clinton of New York. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... He tells people, `Everybody has the right to think for themselves and come up with something new.'' Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... Koya is surrounded by beautiful 291 II INSIDE TIE REVOLUTION countryside whose geography reminded me of New Mexico or Arizona in the American Southwest-rugged mountains, arid deserts, and vast, painted skies that are particularly moving when the sun rises and sets. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... Talabani told Garner the Coalition needed to form an 'advisory group' made up of leading Iraqi dissidents against the Saddam regime who could help lay the foundation of a new democracy. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... On April 22, 2003, just after arriving in Iraq to begin working on reconstruction and assembling a new government, the first two people U.S. Lieutenant General Jay Garner went to see were Jalal Talabani and MEET JALAL TALAOANI 11 805 Massoud Barzani. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... Indeed, in many ways, His Majesty has come to exemplify a new generation of regional leaders. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... 541 11 INSIDE THE REVOLUTION bid appears to be a long shot at this point, the king has agreed to join the new 'Mediterranean Union' made up of twenty-seven E.U. states and twelve other nations bordering the Mediterranean Sea, an initiative launched by French president Nicolas Sarkozy at a July 2008 summit in Paris.' Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... After the 2003 bombings, the king ordered the Ministry of Islamic Affairs to launch a theological training program for new imams to teach them how to promote moderation within Islam, to educate them about Western history and the importance of Christianity and Judaism to Western social and political development, and to help them identify IN[ MOROCCAN MODEL !I Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... The first class graduated 210 new clerics, including fifty-five women, in 2006. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... We have to keep in mind that in his very first address to the nation, the new king said that the country could not move forward on only one leg, since women did not have their whole rights, political and also civil rights. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... 870 11 INSIDE THE REVOLUTION , Like Paul-the greatest apostle in the history of Christendom, a man who wrote much of the New Testament-they, too, were once religious P extremists who hated Jesus and all of His followers. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... She attended church when she was growing up in Rome, New York. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... He is awaking Muslims to the truth of the Scriptures, and He is breathing new spiritual life into people who were raised in churches but were long unaware of the life changing power of Jesus Christ. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... They are giving many unbelievers initial exposure to the gospel, and they are certainly strengthening the faith of new believers as well as those who have been following Christ for some time. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... THE BIG, UNTOLD STORY-PART TWO 11 987 sharing their new faith with anyone and everyone who would listen, enrolling in intensive Bible and evangelism training classes, and doing everything they could to train younger Palestinian believers to become effective in ministry as well. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... In just a few short weeks, with financial help from the Joshua Fund, they delivered forty thousand packages of food, cooking supplies, New Testaments, and the JESUS film on DVD to these displaced and terrified families: They THE BIB, UNTOLD STORY-PART TWO 11 SIR also drove trucks filled with relief supplies and gospel literature to Shia families hunkered down in the south as well as those in the Bekaa Valley, near the border with Syria. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... Now is the critical time to raise up a new JOIN THE REVOLUTION II 401 generation of people to help the Reformers succeed against the Radicals. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... And when the trucks arrived, most wanted the copies of the New Testaments and the DVDs about Jesus first. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... July 2006-Assem Hammoud: Accused of plotting to bomb New York City train tunnels. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... about the author JOEL C. ROSENBERG is the founder of the Joshua Fund and the New York Times best-selling author of The Last jihad, The Last Days, The Ezekiel Option, The Copper Scroll, Dead Heat, and Epicenter, with more than 1.5 Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... The Last jihad spent eleven weeks on the New ABUT TUE IIUT1181 11 545 York Times hardcover fiction best-seller list, reaching as high as #7. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate...
A few bigots yell something nasty at a McCain or Palin rally and it was national news-the New York Times pronounced the Republican candidates guilty of 'race baiting.' A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media The New Media was not motivated in support of McCain but rather in opposition to Obama. A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media They were also out to prove that they could still move public opinion and effect a national outcome in their favor to prove the New Media is of no consequence. A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media Just because some people want stories about Paris Hilton or Britney Spears doesn't mean the editors of the New York Times or the Washington Post should run mindless celebrity gossip about those two. A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media rI l 1 i l I I I 'i 6 ~ e4' JEREMIAH WRIGHT AND THE MEDIA DON'T TELL, DON'T ASK T hanks to the New Media, by now everyone knows about the Reverend Jeremiah Wright and his anti-American rants. A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media On February 19, 2008, the story appeared in the United States in the now-defunct conservative paper, the New York Sun: 92 A SLOBBERING LOVE AFFAIR
Senator Obama's ties to a former leader of the violent left-wing activist group the Weather Underground are drawing new scrutiny as he battles Senator Clinton for the Democratic pres idential nomination. A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media And in fact, on 9/11, he was quoted in the New York Times, saying, 'I don't regret setting bombs. A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media I'm sure it is nothing more than an odd coincidence 118 A SLOBBERING LOVE AFFAIR
that the three papers that got booted-the Washington Times, the New York Post, and the Dallas Morning News-all endorsed McCain for president. A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media Except Charles Schumer, the senator from New York, wasn't kidding. A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media The Ascent of Money ALSO BY NIALL FERGUSON Paper and Iron The House of Rothschild The Pity of War The Cash Nexus Empire Colossus The War of the World NIALL FERGUSON The Ascent of Money A Financial History of the World The Penguin Press New York 2008 Contents


THE PENGUIN PRESS Published by the Penguin Group Penguin Group (USA) Inc., 375 Hudson Street, New York, New York 10014, U.S.A. Penguin Group (Canada), 9o EgBnton Avenue East, Suite 700, Toronto, Ontario, Canada M4P 2Y3 (a division of Pearson Penguin Canada Inc.) Penguin Books Ltd, Bo Strand, London WCzR oRL, England Penguin Ireland, z5 St. Stephen's Green, Dublin z, Ireland (a division of Penguin Books Ltd) Penguin Books Australia Ltd, z50 Camberwell Road, Camberwell, Victoria 3124, Australia (a division of Pearson Australia Group Pry Ltd) Penguin Books India Eve Ltd, n Community Centre, Panchsheel Park, New Delhi-rro 017, India Penguin Group (NZ), 67 Apollo Drive, Rosedale, North Shore 063 z, New Zealand (a division of Pearson New Zealand Ltd) Penguin Books (South Africa) (Pry) Ltd, 24 Smrdee Avenue, Rosebank,Johannesburg 2196, South Africa Penguin Books Ltd, Registered Offices: eo Strand, London WC2R oRL, England First published in zoo8 by The Penguin Press, a member of Penguin Group (USA) Inc. The Ascent of Money: A Financial History of the World 5 THE ASCENT OF MONEY terrorist attacks on New York and London. The Ascent of Money: A Financial History of the World So intricate has our global financial system become, that relatively poor families in states from Alabama to Wisconsin had been able to buy or remortgage their homes with often complex loans that (unbeknown to them) were then bundled together with other, similar loans, repackaged as collateralized debt obligations (CDOs) and sold by banks in New York and London to (among others) German regional banks and Norwegian municipal auth orities, who thereby became the effective mortgage lenders. The Ascent of Money: A Financial History of the World Was this because American companies had got worse at designing new products? Had the pace of technological inno vation suddenly slackened? No. The proximate cause of the econ omic uncertainty of zoo8 was financial: to be precise, a spasm in the credit markets caused by mounting defaults on a species of debt known euphemistically as subprime mortgages. The Ascent of Money: A Financial History of the World This took financial alchemy to a new level of sophisti cation, apparently turning lead into gold. The Ascent of Money: A Financial History of the World The new people will resemble their hunting and gathering ancestors who r7 THE ASCENT OF MONEY trusted in a nature which supplied them freely and often abundantly with what they needed to live, and who had no worry for the morrow ... The Ascent of Money: A Financial History of the World The new silver-rush city of Potosi was, declared Domingo de Santo Tomas, `a mouth of hell, into which a great mass of people enter every year and are sacrificed by the greed of the Spaniards to their 'god'.' The Ascent of Money: A Financial History of the World Only look at the villa of Cafaggiolo, the monastery of San Marco, the basilica of San Lorenzo and the spectacular palaces occupied by Duke Cosimo de' Medici in the mid sixteenth century: the former Pitti Palace, the redecorated Palazzo Vecchio and the new city offices 41 THE ASCENT OF MONEY (Uffizi) with their courtyard running down to the River Arno.' The Ascent of Money: A Financial History of the World It was only the proliferation of new kinds of bank, and particularly those taking deposits, that made monetary expansion possible. The Ascent of Money: A Financial History of the World 55 THE ASCENT OF MONEY of gold coin and bullion in the Bank of England's reserve, the growth of the UK economy would have been altogether choked off, even allowing for the expansionary effects of new gold dis coveries in the nineteenth century. The Ascent of Money: A Financial History of the World Modern Memphis gives a whole new meaning to the expression `bled dry'. The Ascent of Money: A Financial History of the World The idea was to use the South's cotton crop not just as a source of export earnings, but as collateral for a new kind of cotton-backed bond. The Ascent of Money: A Financial History of the World And that is why the fall of New Orleans in April 186z was the real turning point in the American Civil War. The Ascent of Money: A Financial History of the World When capital expenditures were called for, the V O C raised money not by issuing new shares but by issuing debt in the form of bonds. The Ascent of Money: A Financial History of the World In 1705 he submitted to the Scottish parliament a proposal for a new bank, later published as Money and Trade Considered. The Ascent of Money: A Financial History of the World To conduct this trade, a grand new city was established at the mouth of the Mississippi: New Orleans, named to flatter the always susceptible Regent. The Ascent of Money: A Financial History of the World His terse statement on zo October, affirming the Fed's `readiness to serve as a source of liquidity to support the economic and financial system', sent a signal to the markets, and particularly the New York banks, that if things got really bad he stood ready to bail them out.' The Ascent of Money: A Financial History of the World Then, two hours later, came the thirty-foot storm surge that breached three of the levees that protect New Orleans from Lake Pontchartrain and the Missis sippi, pouring millions of gallons of water into the city. The Ascent of Money: A Financial History of the World Its first step was to introduce a new
zo7 THE ASCENT OF MONEY system of universal health insurance to supplement the existing programme for industrial employees. The Ascent of Money: A Financial History of the World When the new legislation was passed, President Reagan declared: `All in all, I think we hit the jackpot.'' The Ascent of Money: A Financial History of the World Indeed, I found myself wondering as I drove around Detroit if subprime was in fact a new financial euphemism for black. The Ascent of Money: A Financial History of the World Most used the proceeds to pay off credit card debts, carry out renovations or buy new 265 THE ASCENT OF MONEY consumer durables.* The Ascent of Money: A Financial History of the World Before blithely embracing today's brave, new and supposedly 'post-American' world,' we must be sure that similar unforeseen reactions could not pull the geopolitical rug out from under the latest version of globalization. The Ascent of Money: A Financial History of the World But was there also some connection between the effects of global economic integration and the outbreak of the First World War? It has recently been suggested that the war should be understood as a kind of backlash against globalization, heralded by rising tariffs and immigration restrictions in the decade before 1914, and welcomed most ardently by Europe's agrarian elites, whose position had been undermined for decades by the decline in 287 THE ASCENT OF MONEY agricultural prices and emigration of surplus rural labour to the New World.' The Ascent of Money: A Financial History of the World One where the inhabitants were omniscient and perfectly rational; where they instantly absorbed all new information and used it to maximize profits; where they never stopped trading; where markets were continuous, frictionless and completely liquid. The Ascent of Money: A Financial History of the World Clearly, the firm's new owners did not like the losses they had been seeing since May. The Ascent of Money: A Financial History of the World Chimerica, in other words, was the underlying cause of the surge in bank lending, bond issuance and new deriva tive contracts that Planet Finance witnessed after zooo. The Ascent of Money: A Financial History of the World It also seems likely that new forms of financial institution will spring up in the aftermath of the crisis. The Ascent of Money: A Financial History of the World 399 LIST OF ILLUSTRATIONS P. 144: A share in the Compagnie des Indes (Bibliotheque Nationale) p. 147: Scene in the rue Quincampoix, 1719 (Historic New Orleans Collection) p. 154: Engraving from The Great Scene of Folly (1720) (Historic New Orleans Collection) p. 155: Bernard Picart, Monument Consecrated to Posterity (172.1) The Ascent of Money: A Financial History of the World There would be new people who hadn't yet judged me, who didn't know I was awkward and shy, lanky and clumsy, and generally hopeless with girls. In the Event of My Untimely Demise But these other people-these strange, unnaturally motivated sorts-were already working toward glorious resumes that would need no padding, and were well on the path to a quarter-page New York Times obit in sixty years. In the Event of My Untimely Demise Though I haven't seen George in a long time, if I were to run into him, I'd certainly say hi, and we'd probably drink too much beer and reminisce, but I definitely wouldn't loan him my new painting supplies. In the Event of My Untimely Demise The incredible satis faction I feel at witnessing the very moment new concepts 167 In the Event of My Untimely Demise are being understood. In the Event of My Untimely Demise The thrill of hearing new words and watching how a young mind sees and interprets the world I've taken for granted for so long. In the Event of My Untimely Demise NEW YORK CIW August 2007 zro TEN QUESTIONS with Brian Sack 1. In the Event of My Untimely Demise Published in the United States by Random House, an imprint of The Random House Publishing Croup, a division of Random House, Inc., New York. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country It was the only way they could come-through the Khyber Pass of a New West. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Each of these colonial frames-in New England, Virginia, and the Middle Colonies-began with its own blend of attitudes toward the fundamental forces in human affairs. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country A mixed-race son of Kenya and Kansas, he had lived in many places-Hawaii, Indonesia, Los Angeles, New York City, and Cam bridge-before finally finding love and identity on the South Side of Chicago in the security and striving of its fabled black community. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Wade in 1973, a new cul tural war arose, this one between abortion-rights supporters (among them Richards, Ferraro, Pelosi, and Clinton) and the foes of the medical procedure, who insisted that life (and personhood) began at conception, and abortion was a form of murder. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Fear of the economic and social consequences, especially of 'illegals,' was WHO IS AN AMERICAN? 39 rampant, but so, too, was the realization that the new wave of want-to-be Americans was our best hope for a new burst of creativity and a renewal of global competitiveness. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country But the resulting dismay itself can be the immigrant's priceless con tribution to his or her new country, because for every homegrown Amer ican who gives up on the Dream, there are scores willing to risk their lives WHO IS AN AMERICAN? 43 for the chance to live it. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country But the Al Qaeda attacks of 9/11 generated a whole new cate gory of hysteria, and a whole new justification, or excuse, to slam the door. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Even the town of New Amsterdam, founded by Dutch merchants who saw profits in tol erance, turned exclusivist in tone when Peter Minuet arrived from Hol land and began barring non-Protestant riffraff. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country We should not be treated as criminals, but as new marchers in the struggle for civil rights. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Baptists had grown mighty on America's frontiers, where settlers had needed a portable, independent faith, one that validated their sense of freedom but also gave them confidence that they were doing the Lord's work in the New World. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country It was all the more vital because, in a New Eden of America, there was more or- THE ROLE OF FAITH 63 gency in finding the right biblical path away from sin. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country That, THE ROLE OF FAITH 67 too, was a crusade, melding our fundamental metaphors for renewal and hope-a Great Awakening, a move to the West-into the phrase 'New Frontier.' The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Politically, I came to realize, they were harbingers of the new era, in which 'cultural politics' would be, or would seem, as important as the economics-based THE ROLE OF FAITH 69 politics that traced its roots to the New Deal. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Republicans and conservatives, led by new RNC chairman Bill Brock of Tennessee, recognized the threat im mediately, and went to work countering it. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The meaning was clear: Even though millions of white voters in the South had migrated to the Republican Party because of its 'states'-rights' stand on race, Democrats could win the region if they could maintain, and build on, the new faith- 70 THE THIRTEEN AMERICAN ARGUMENTS based activism of the evangelicals. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country New Right ac- THE ROLE OF FAITH 71 tivists in Virginia knew about him and were impressed. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country By the winter of 2007, The New York Times was bogged down in fighting an array of investigators who were demanding reporters' notes, records, or testimony-or all three. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country 80 THE THIRTEEN AMERICAN ARGUMENTS The Founders were constructing a new government at precisely the time when the idea of free speech had gained currency as the New Answer. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Over time, Americans did not always (or even usually) discover the pure-science fundamentals of new communications modes, but we were almost always the first to apply them commercially, if for no other reason than that the giant, rapidly growing country desperately required it. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country During World War I, President Woodrow Wilson authorized officials WHAT CAN WE KNOW AND SAY? 85 to prosecute conscientious objectors and others who criticized the govern ment, and he backed the passage of a new Sedition Act that was a carbon copy of the discredited one of a century earlier. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country THE LIMITS OF INDIVIDUALISM It was a frigid January day in New Hampshire, but despite the temperature the line of voters snaked through the high school cafeteria and out the front door. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country And for the minute or so that each voter stood before him, it was as though there was no one else in the universe (or at least New Hampshire) and no concerns but theirs. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The New Frontier had come and gone; so had the Great Society, both with mixed results. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Of course, New England's own form of communism existed to the south of New Hampshire, in their view. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country And yet as a third generation navy man-the son and grandson of admirals-and as a former prisoner of war who had had literally years to think about the meaning of his country, McCain was obsessed with trying to solve big governmental problems with big governmental solutions, whether it was new military weaponry or a balanced federal budget through measured tax hikes. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country WHO JUDGES THE LAW? 113 78, he famously declared that the new federal judiciary, topped by a Supreme Court, would be 'the weakest of the three departments of power.' The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country There are two simple ways to do so: He can either assert that the facts are different in the WHO JUDGES THE LAW? 115 case at hand, and so the controlling case does not really control the new one, or he can simply say that 'public policy' requires the change. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country He can also claim to find changes in society, or discover new 'rights' implied in the Constitution. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country He had heard each and every doomsday scenario; indeed, he had been reared on them growing up in New York City in the aftermath of the Great Depression. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country With inflation tamed, the 'supply side' of the economy-manufacturers, lenders, mar keters, the service sector-would be willing to risk new investment. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country A new theory that said you could bal ance the budget by cutting taxes made no sense, and they regarded it as bad policy, especially since Democrats would never agree (and were not agreeing) to eliminate programs that they had erected and protected for a generation. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country LOCAL V NATIONAL AUTHORITY Brian Williams had covered his share of disasters as a reporter, but he could not believe what he was seeing and hearing as he prepared to anchor the NBC Nightly News from New Orleans. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The larger colonies, such as Vir ginia, Massachusetts, and New York, aggressively protected their com mercial prerogatives. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country In Pennsylvania or New York or Illinois, the local citizens tend not to think LOCAL V. NATIONAL AUTHORITY 149 of themselves as Pennsylvanians or New Yorkers or Illinoisans. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country As of early 2008, Congress had not voted for such a card, but the assumption was widespread that any new immigra tion bill that reached the president's desk would require one. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Local cops in places such as New York City had done a far better job-given their savvy and their feel for the local terrain-than the FBI. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country During the Ford-Carter years, the Congress passed a War Powers Act in an effort to reclaim, or assert, its role in decisions about the use of our armed might in the world; all but dismantled the CIA for its misdeeds; passed laws aimed at enhancing Congress's own power to control admin r 160 THE THIRTEEN AMERICAN ARGUMENTS istrative spending; and demanded new openness in the proceedings of federal agencies. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Teddy Roosevelt's exploits were camera-ready for the new mass-produced big-city tabloids (web presses were the cutting-edge media technology); later, the soothing and optimistic timbre of his cousin's voice was made for the medium of radio, which came into its own in FDR's day. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Kennedy commanded the then-new medium of live televi sion; Reagan the set-piece Technicolor theatrics of the made-for-TV movie; Clinton the fast-paced 'war room' call-and-response of confes sional cable television. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country But all the new president wanted to talk about was raw politics. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Citing the exigencies of wartime-and the global, borderless battle against a strange, new, hard-to-find-and-define terrorist enemy-Bush and his lawyers attempted to assert presidential power in startling ways through an expansive reading of both congressional resolutions and the commander-in-chief powers of the U.S. Constitution. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Then Adam Smith proposed a new paradigm: Let every nation be scot-free to import and export as it wished and all that it wished; rid, the world of medieval barriers-tariffs, duties, quotas, subsidies, exclusive shipping, and port rules-and world trade would grow exponentially as each country maxi mized its 'comparative advantage.' The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The governments were operating, however, in an era when new theories of capital and commerce were on- THE TERMS OF TRADE 183 dermining the old, the static, and the monarchial. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Even though chartered by royal authority, a private stock company was a new, independent cre ation: a force of its own, with more loyalty to its shareholders than to the crown and court. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The tanners and shoemakers of New England, some of which still exist, needed help. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country President George H. W. Bush had broached it, asking Congress for new authority to negotiate a barrier-free trade zone that would encompass all of North America. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The goal was nothing less than a grand new vision of global commerce. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Baptist missionaries, for example, were venturing from their rural homes in Upstate New York to as far away as Burma by the early days of the nineteenth century. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country These Americans brought along not just the Gospels but also their faith in the ideals of the new country that had trained them. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country That was the only way to avoid what Bernard Lewis of Princeton had first called, in 199o, a new 'Clash of Civilizations' between Islam and the West. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The mining of Western coal was a relatively new phenomenon, but one Cheney applauded. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country You could always move to someplace new.' The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Environmental- THE ENVIRONMENT 221 ists, and a new generation of technologists and investors, believed that radical, inventive new conservation measures offered the most hope. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country It was entirely possible that the local industry-especially in frantic, blast-every-coal-seam boom times-would shake loose a five-ton boulder that would roll down the hill and flatten your new 'double-wide' trailer, maybe even with you inside. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The farms in that early New West were furious at the 'tidewater gentry' along the Atlantic Coast, who were using their monopolistic access to seaborne trade in tobacco and other crops to squeeze their country cousins. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country He was an early supporter of Franklin Roosevelt's New Deal, which he called 'Christ's Deal,' as well. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The group had started as a loose association of antiwar websites but had grown into what amounted to a new constituency of reformers looking to take over and transform the Democratic Party. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Global geopolitics morphed into perilous new shapes. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The Soviet Union was long gone, but Vladimir Putin was erect ing a new, hydrocarbon-based hydra in its place. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country When they do, new parties emerge. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Although I have never been based at Newsweek headquarters in New York, I benefit from the wisdom, knowledge, and patience of many people there, chief among them Jonathan Alter, Nancy Cooper, Barbara Kantrowitz, George Hackett, and Steve Levy, as well as Allan Sloan (now of Fortune), Nancy Stadtman, Andrew Romano, Connie Wiley, Madeline Cohen, Barbara DiVittorio, Deborah Milan, Susan McVea, and Dave Friedman. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country New York: Modern Library, 2001. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country New York: Harmony Books, 1993. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country New York Times, January 16, 2005. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country New York: New York University Press, 1992. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country New York: Simon & Schuster, 1 979 NOTES 265 Seven: Debt and the Dollar Bartlett, Bruce 'Politics at the Fed.' The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country New York: Penguin, 2007. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country The Age of Turbulence: Adventures in a New World. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country New York: Oxford University Press, 2002. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country New York: Scribner's, zooo. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country New York: Edwin Mellen Press, 2000. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country New York: Houghton Mifflin, 1962. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country See also race Naturalization Act (1790), 46 Nelson, Gaylord, 218 neoconservatives, 175, 196 INDEX 299 New Deal, 13, 35, 69, 98, too, 135, 170, 188,236 New England, 12, 1 47, 155, 185 New Frontier, 48, 67, 94 New Hampshire elections of 1g8S in, 104 elections of 1992 in, 92-93 elections of 2000 in, 229-30 elections of 2oo8 in, 25, 107 individualism in, 92-93, 101-2, 103, 10 4, 10 7 and local vs. federal authority, 155-56 New Orleans, Louisiana Battle for (1815), 147 Hurricane Katrina in, 1 4 1- 43 New Right, 70-71 New York City, 9, 12, 14, 46, 47, 58, 65, 66, 145 New York State, 67, 145, 147, 149,2o6 The New York Times, 61, 75, 7 6- 77, 8 4, 88,89 New York Times v. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country See also Russia Speakes, Larry, 173 special interests, 231 Specter, Arlen, 59, 122, 123 Sperling, Gene, 19r-92, 193 Springfield, Illinois Lincoln speech in, 2t, 22, 23, 29 Obama speech in, 21, 22-23 stare decisis principle, 114, 116 Start, Kenneth, 1o9 State as force for domination, r8 and foreign relations, 198, 201, zoo, 207-8 See also federalism State Department, U.S., 89, 202 states' rights, 14, 144, 1 49, 1 54, 1 55 Steinbeck, John, 217 stem-cell research, 15-16, 59-6o, 73, 122, 1 54 - 55 Stone, Geoffrey R., 82, 86 'Straight Talk Express,' 229 strip mining, 219, 221-23, 225 Sullivan, New York Times v. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country Fineman's work has also appeared in The New York Times, The Washington Post, and The New Republic. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country At night the town was an aphrodisiac-with city lights like rare jewels sparkling down from Nob Hill and Pacific Heights, through the better neighbor hoods and along the rougher streets of the Mission and the Tender loin (my new 'hood), spilling out of the towers of the Financial District and reflecting into the bay by Fisherman's Wharf and the Marina. The Pursuit of Happyness Surprised at the lack of organization, I ask for my new boss, who is also the branch manager, the guy who hired me, the person who told me, 'We'll give you a shot.' The Pursuit of Happyness CHAPTER x:
Roses in the Ghetto


veryone wanted to help as we began life in our new home in our Oakland, California, inner-city version of Kansas. The Pursuit of Happyness 'You see that, son?' he said to one of the new guys. The Pursuit of Happyness ALSO BY MATT TAIBBI Spanking the Donkey: Dispatches from the Dumb Season Smells Like Dead Elephants Dispatchesfrom a Rotting Empire WITH MARK AMES The Exile: Sex, Drugs, and Libel in the New Russia =`I'he GREAT DERANGEMENT A TERRIFYING TRUE STORY OF WAR, POLITICS, AND RELIGION Matt Taibbi SPIEGEL & GEAU New York 2009 PUBLISHED BY SPIEGEL & GRAU Copyright © 2008 by Matt Taibbi Afterword copyright © 2009 by Matt Taibbi Published in the United States by Spiegel & Grau, an imprint of The Doubleday Broadway Publishing Group, a division of Random House, Inc., New York wwwspiegelandgrau.com The Great Derangement: A Terrifying True Story of War, Politics, and Religion Ex amining this rationale, the mainstream press did not denounce Bush's reasoning as the preposterous horseshit it was, but in stead tripped over themselves en masse in a desperate attempt to find new ways to compare their leader to Winston Churchill. The Great Derangement: A Terrifying True Story of War, Politics, and Religion 14 THE GREAT DERANGEMENT And that was really the point of one of the last scenes in the book, the one where I crank-call my old church from the safety of my real home, the depraved universe o£ empty-hearted media creatures, in this case the NFL draft in New York. The Great Derangement: A Terrifying True Story of War, Politics, and Religion She's wearing a T-shirt that says 'ITHACA IS GORGES,' but I don't think either of them is from New York State. The Great Derangement: A Terrifying True Story of War, Politics, and Religion Barton is at the Rules Committee now to shepherd a mon strosity called the Gasoline for America's Security Act-collo- quially called the new energy bill, as opposed to the old energy bill, an obscene porkfest passed that summer-through the last stages of the House approval process. The Great Derangement: A Terrifying True Story of War, Politics, and Religion In December 2002, the Environmental Protection Agency under Bush came up with a series of loopholes aimed at helping factories and power plants avoid requirements to mod ernize: The provisions were challenged and mostly defeated in the District of Columbia Circuit Court, but this was no deter rent to the EPA; under a year later, in August 2003, it came out with yet another new rule designed to circumvent new source review, which the court again struck down. The Great Derangement: A Terrifying True Story of War, Politics, and Religion New source review, despite repeated attacks, remained a heavy rope around the neck of industry. The Great Derangement: A Terrifying True Story of War, Politics, and Religion refineries,' the agency wrote in June 2002, in its 'New Source Review: A Report to the President.' The Great Derangement: A Terrifying True Story of War, Politics, and Religion With dictatorial Rules chair David Dreier commanding the commit tee with iron discipline, the roles of the four Democrats on the committee-Louise Slaughter of New York, Doris Matsui of California, Alcee Hastings of Florida, and Jim McGovern of Massachusetts-would be reduced, quite literally, to bitching and moaning as loudly as possible during those few Rules hear ings that would be held during daylight hours. The Great Derangement: A Terrifying True Story of War, Politics, and Religion The idea that any of us might actually get killed so that this redneck retiree could buy his wife a new living room set was such complete and utter madness that it simply was not possible to think about it. The Great Derangement: A Terrifying True Story of War, Politics, and Religion Now you've got no timeline, and the antiwar vote the Congress was elected to cast iSIA going to be there, but what you do have is one hundred and twenty-four billion dollars in new spending. The Great Derangement: A Terrifying True Story of War, Politics, and Religion Finally we settled down and Les started talking about some compelling 9/11 footage that some friend of his had, something about explosions, that the New York TV sta tions were 'sitting on' and keeping from the public. The Great Derangement: A Terrifying True Story of War, Politics, and Religion The weird thing was that the new post-Isuzu ironic ads co existed with ads of the same-old-bullshit genre. The Great Derangement: A Terrifying True Story of War, Politics, and Religion A new guy had joined the group, let's call him Ron. The Great Derangement: A Terrifying True Story of War, Politics, and Religion SILVERSTEIN: Do you think you could make sure that the 227 228 THE GREAT DERANGEMENT WTC 7 building goes down, Coo? See, the thing is, I just signed a new insurance deal with Industrial Risk Insurers; this could all work out very nicely for me. The Great Derangement: A Terrifying True Story of War, Politics, and Religion Another writer, a noted JFK conspiracist named Jim Marrs, speculated that former New Jersey governor Thomas Kean was an obvious choice to head the massive coverup exercise known as the 9/11 Commission because he sat on the Council on Foreign Relations, a 'secret society,' as Mans called it. The Great Derangement: A Terrifying True Story of War, Politics, and Religion But not many people are buying this bullshit anymore, and 302 THE GREAT DERANGEMENT EPILOGUE 303 that may mark the beginning of something genuinely new in the American political system. The Great Derangement: A Terrifying True Story of War, Politics, and Religion GREENSPAN'S BUBBLES The Age of Ignorance at the Federal Reserve



William A. Fleckenstein with Frederick Sheehan


Mc Graw Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Acknowledgments ix Introduction A True Accounting: The Greenspan Era (1987-2006) 1 Chapter 1 How Wrong Can One Man Be? (1973-1994) 7 Chapter 2 The Bubble King: The Put Is Born (1995-1997) 27 Chapter 3 The FOMC Meets the Greenspan Put-and Yawns (1998-1999) 47 Chapter 4 Bubbleonians Running the Asylum: The Bubble Blow-Off (1999-2000) 71 Chapter 5 The Stock Bubble Bursts: The Tech Miracle Was a Mirage (2000-2001) 91 Chapter 6 Home Sweet Home: Housing Saves Us from the Stock Bubble (2001-2003) 121 Chapter 7 The Housing Hot Potato: The Real Estate Bubble Fuels the ATM (2003-2007) 151 Conclusion The Consequences of the Loss of Fear (2007 and Beyond) 181 Notes 189 ACKNOWLEDGMENTS



This book could never have been written without the help of my partner in the study of the life and times of Alan Greenspan, Fred Sheehan. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve Yet, when these central planners decide they've chosen the wrong rate, for whatever reason, they use the very same process when selecting a new one. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve What was undeniably a bubble-exacerbated, if not created, by Greenspan-was now seen by Greenspan 36 - GREENSPAN'S BUBBLES
himself as a rational response to a new era in the U.S. economy powered by technology that drove the growth of productivity. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve As the boom went on-for three more years, it turned out, greatly increasing the nation's paper wealth-we continually wrestled with the big question of productivity and price stability and other aspects of what people had come to call the New Economy. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve Really? I'm not sure where he thought he had said it before, but this is the first evidence on the record that he had developed a new theory about bubbles. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve 96 - GREENSPAN'S BUBBLES
Approximately two weeks later, on April 7, 2000, Greenspan delivered a speech once again extolling the virtues of investing in new technology. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve New technologies that evolved from the cumulative innovations of the past half-century have now begun to bring about dramatic changes in the way goods and services are produced and in the way they are distributed to final users. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve In recent U.S. data [circa spring 2000], the direction of bias is clear: the rate of decline in computer prices is being exaggerated, as rapid introductions of new technology are interpreted as large declines in the price of existing technology. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve [Author's note: Does he really believe in two economies-one old, one new?] Actu ally, there has been a slight downtick in long-term 106 • GREENSPAN's BUBBLES
expectations of high-tech firms, but it is very small considering the fact that the stock prices for the sec tor have come down so markedly. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve In New York City, the prices had risen 67 percent; in Jersey City, 75 percent; in Boston, 69 percent; and in San Francisco, 88 percent.' Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve Real estate was becoming the new object of desire and wealth (much like the Dutch tulip bulb craze discussed in Chapter 2). Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve We face new challenges in maintaining price sta bility, specifically to prevent inflation from falling too low. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve While we've already covered much of Greenspan's backtracking, he did make some new and interesting claims. Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve 'We will quote once more an amazing nugget of research 194 ° GREENSPAN'S BUBBLES
from Asha Bangalore, economist at Northern Trust Co.: No less than 40 percent of new jobs since 2001 owe their existence, directly or indirectly, to the real estate levitation.' Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve 2006023039 For Ian McEwan In serene recollection of La Refulgencia Contents One Putting It Mildly t Two Religion Kills 15 Three A Short Digression on the Pig; or, Why Heaven Hates Ham 37 Four A Note on Health, to Which Religion Can Be Hazardous 43 Five The Metaphysical Claims of Religion Are False 63 Six Arguments from Design 73 Seven Revelation: The Nightmare of the 'Old' Testament 97 Eight The 'New' Testament Exceeds the Evil of the 'Old' One tog Nine The Koran Is Borrowed from Both Jewish and Christian Myths 123 Ten The Tawdriness of the Miraculous and the Decline of Hell 139 Oh, wearisome condition of humanity, Born under one law, to another bound; Vainly begot, and yet forbidden vanity, Created sick, commanded to be sound. God Is Not Great: How Religion Poisons Everything 21] Seventeen An Objection Anticipated: The Last-Ditch 'Case' Against Secularism 229 Eighteen A Finer Tradition: The Resistance of the Rational 2 53 Nineteen In Conclusion: The Need for a New Enlightenment 277 Afterword 2 8 5 Acknowledgments 2 95 References 2 97 Index 30 5 Reading Group Guide 319 THE BROTHERS KARAMAZOV god is not G rest Chapter One Putting It Mildly f the intended reader of this book should want to go beyond dis agreement with its author and try to identify the sins and defor mities that animated him to write it (and I have certainly noticed that those who publicly affirm charity and compassion and forgiveness are often inclined to take this course), then he or she will not just be quarreling with the unknowable and ineffable creator who-presum ably-opted to make me this way. God Is Not Great: How Religion Poisons Everything How much vanity must be concealed-not too effectively at that-in order to pretend that one is the personal object of a divine plan? How much self-respect must be sacrificed in order that one may squirm continually in an awareness of one's own sin? How many needless assumptions must be made, and how much contortion is required, to receive every new insight of science and manipulate it so as to 'fit' with the revealed words of ancient man-made deities? How many saints and miracles and coun cils and conclaves are required in order first to be able to establish a dogma and then-after infinite pain and loss and absurdity and S GOD IS NOT GREAT PUTTING IT MILDLY q cruelty-to be forced to rescind one of those dogmas? God did not much in common with other tribes of the human species-'race' create man in his own image. God Is Not Great: How Religion Poisons Everything So, in the name of god, the old hatreds were drilled into I was to imagine myself in a strange city as the evening was coming ` new generations of schoolchildren, and are still being drilled. God Is Not Great: How Religion Poisons Everything So did the cardinal arch bishop of New York and many other lesser religious figures. God Is Not Great: How Religion Poisons Everything The nineteen suicide murderers of New York and Washington and Pennsylvania were beyond any doubt the most sincere believers on those planes. God Is Not Great: How Religion Poisons Everything In New York City in the year zoos, the ritual, as performed by a fifty-seven-year-old mohel, was found to have given genital herpes to several small boys, and to have caused the deaths of at least two of them. God Is Not Great: How Religion Poisons Everything In a public debate with Peter Steinfels, the liberal Catholic 'religion editor' of the New York Times, I was told the same thing. God Is Not Great: How Religion Poisons Everything Abraham-another ancestor of all monotheism-is ready to make a human sacrifice of his own first born. God Is Not Great: How Religion Poisons Everything And a rumor comes that 'a virgin shall conceive, and bear a son.' God Is Not Great: How Religion Poisons Everything It's needful to bear this in mind when coming to the New Testament, because if you pick up any of the four Gospels and read them at random, it will not be long before you learn that such and such an action or saying, attributed to Jesus, was done so that an ancient prophecy should come true. God Is Not Great: How Religion Poisons Everything to] Chapter Eight The 'New' Testament Exceeds the Evil of the 'Old' One T he work of rereading the Old Testament is sometimes tiring but always necessary, because as one proceeds there begin to occur some sinister premonitions. God Is Not Great: How Religion Poisons Everything Nothing, that is, except the growth of a huge new superstition, based upon a belief in occult texts and shards that are available only to a favored few. God Is Not Great: How Religion Poisons Everything On an other island named New Britain, adjacent to Papua New Guinea, the cult is even more strikingly analogous. God Is Not Great: How Religion Poisons Everything This radiant future, sad to say, is known as the 'Period of the Companies,' and will cause New Britain to flourish and pros per as if it were a multinational corporation. God Is Not Great: How Religion Poisons Everything With infinite labor, the translation was resumed, with new scriveners behind the blanket as occasion demanded, and when it was completed all the original golden plates were transported to heaven, where apparently they remain to this day. God Is Not Great: How Religion Poisons Everything Later in life, he had Paine's works in his camp and admitted freethinkers to his tiny but epoch-changing army, and even produced and printed a new 'Declaration,' modeled 1 77 178 GOD IS NOT GREAT on that of 1776, on behalf of the enslaved. God Is Not Great: How Religion Poisons Everything And it is permitted in New York in zoo61 If religion and its arrogance were not involved, no healthy society would per mit this primitive amputation, or allow any surgery to be practiced on the genitalia without the full and informed consent of the person concerned. God Is Not Great: How Religion Poisons Everything At the first meeting of his cabinet after this capitulation was signed, Hitler announced that these new circumstances would be 'especially significant in the struggle against international Jewry.' God Is Not Great: How Religion Poisons Everything 'Christ is a new man. God Is Not Great: How Religion Poisons Everything Mankind can be renewed only on the Russian pattern; that is why no Christian can oppose the one-cruel, it is true-idea which will create a new kind of man over the entire planet. God Is Not Great: How Religion Poisons Everything The new man is the Soviet man. God Is Not Great: How Religion Poisons Everything 2 75 Chapter Nineteen In Conclusion: The Need for a New Enlightenment The true value of a man is not determined by his possession, supposed or real, of Truth, but rather by his sincere exertion to get to the Truth. God Is Not Great: How Religion Poisons Everything We only have the right to say, 278 GOD IS NOT GREAT THE NEED FOR A NEW ENLIGHTENMENT 279 of those who do claim to know the truth of revelation, that they are q seen again until his long-awaited and beseeched reappearance will as deceiving themselves and attempting to deceive-or to intimidate- tonish and redeem the world. God Is Not Great: How Religion Poisons Everything i 28o GOD IS NOT GREAT THE NEED FOR A NEW ENLIGHTENMENT 281 Yet again it is demonstrated that monotheistic religion is a plagiarism II These arguments tended to take ugly forms: I was not so often leaving of a plagiarism of a hearsay of a hearsay, of an illusion of an illusion, '' my desk [o go and debate with some skillful old Jesuit at Georgetown, extending all the way back to a fabrication o£ a few nonevents. God Is Not Great: How Religion Poisons Everything Euphemis This puts the confrontation between faith and civilization on a tic noises were made about the need to show 'respect,' but I know whole new footing. God Is Not Great: How Religion Poisons Everything The i THE NEED FOR A NEW ENLIGHTENMENT 283 282 GOD IS NOT GREAT worse of the two. God Is Not Great: How Religion Poisons Everything Joy Bergmann alerted me to the horror of the peri'ah metsitsah as practiced in today's New York, and in countless other ways helped me [p. God Is Not Great: How Religion Poisons Everything Seealso Climbing Mount Improbable, by Richard Dawkins (New York: W. W. [P- 45] For the Bishop Cifuentes sermon, see the BBC TV produc Norton, 1996), pp. 138-197 tion Panorama, aired June 27, 2004. God Is Not Great: How Religion Poisons Everything I 298 References REFERENCES 299 a [P- 35] For Charles Stanley and Tim LaHaye, see Charles Marsh, 'Way- CHAPTER SIX ward Christian Soldiers,' New York Times, January zo,2oo6. God Is Not Great: How Religion Poisons Everything 81-83] On the evolution of the eye and why it argues against in CHAPTER FOUR s telligent design, see Michael Shermer, Why Darwin Matters: A NOTE ON HEALTH, TO WHICH The Case Against Intelligent Design (New York: Times Books, RELIGION CAN BE HAZARDOUS 2oo6),p.17.Theemphasis God Is Not Great: How Religion Poisons Everything and Neil Asher Silberman, The Bible Unearthed: Archaeology's I I 3oo References REFERENCES 301 New Vision of Ancient Israel and the Origin of Its Sacred Texts ,., God Is Not Great: How Religion Poisons Everything Short History (New York: Modem Library, 2ooo), p. ro. God Is Not Great: How Religion Poisons Everything ( CHAPTER TEN revised and newly edited by James Strachey (New York: ~.~.. God Is Not Great: How Religion Poisons Everything [R 136] The Karen Armstrong quotation comes from her Islam: A (New York: Touchstone, 2oo2). God Is Not Great: How Religion Poisons Everything biblical fictions and, 102-3, 111-12, 116, 118, 12o-21 child abuse and, 223-25 Crucifixion of Jesus and, 110-11, 113, 116, 210, 251 and destructiveness of religion, 16-17, 1 9 -2 5, 27, 30, 3 2- 34, 36 on eating pork, 37-41 health issues and, 49-51, 53 and immorality of religion, 193, 2o6-8,210,212 King and, 174, 18o Koran and, 123, 128-29, 132 miracles and, 149-50 rational resistance and, 255, 26o-63, 272 - 74 revelation arguments and, 98-1o3, 105-6 Sevi and, 16q-7o, 172 on sex, 49-51, 53-54 totalitarianism and, 2 35 - 4 0 , 243 - 44, 250-52 Joan ofArc (Schiller), 77 Job, 96, 107 John Paul II, Pope, 65, 193 Johnson, Samuel, 54 John the Apostle, Saint, 56, 113, 115, 122 John the Baptist, Saint, 170, 176 Joseph, 22-23,158 biblical fictions and, 111, 114, 116-17 Josephus, 112 Joshua, 103, 117, 125, 261 Joyce, James, 218 Judas, 210 Judas, Gospel of, I12-14, 152 Jungle, The (Sinclair), 39 Kahane, Meir, 274-75 Kamikaze, 203 Kant, Immanuel, 243,265-66 Khadijah, 128 Khomeini, Ayatollah Ruhollah, 28-29, 46,126 Khomeini, Sayed Hossein, 126 Kierkegaard,Soren,71 Kim II Sung, 248 Kim Jong 11, 248 King, Martin Luther, 173-76, 184 assassination of, 174-75 racism and, 173-74, 179-80, 182 King James Bible, 11-12,98, 101 King Lear (Shakespeare), 40 Kony, Joseph, 189, 192 Koran, 46, 55, 123-37, 151, 181, 188, 227,252 alleged satanic verses of, 134, 136 and destructiveness of religion, 23, 26,29,33 on eating pork, 37-38 language of, 12-13,124-26, 129, 131, 137 Mormons and, 161, 164 revelations and, 98, 128-2q, 34 - 35, 161 on tolerance of other religions, 133-34 transciption and compilation of, 130-32 and words and deeds of Muhammad, 127-31 LaHaye, Tim, 35,56-57 Laplace, Pierre-Simon de, 66-67, 69,79 las Casas, Bartolemeo de, 89 Lazarus,142 leaps of faith, 71 Lebanon,lg-2o Left Behind (LaHaye and Jenkins), 35, 5 6- 57 Lenin, Vladimir Ilyich, 235, 244-45 Lessing, Gotthold, 277 'Letter from Birmingham Jail' (King), 173 Leviathan (Hoboes), 156 Lewis, C. S., 7, 118-2o, 209,256 Lie, Trygve, 152 Lincoln, Abraham, 66,178-79,185 Lindsey, Hal, 6o-61 Literature and Revolution (Trotsky), 153 INDEX Little Pebbles, 1qo Lively, Penelope, 265 Llandaff, bishop of, 107 Llano Cifuentes, Rafael, 45-48 Lopez de Trujillo, Alfonso, 45 Lord ofthe Flier (Golding), 41 Lubavitcher movement, 172, 207 Lucretius, 15, 258-6o Luke, Gospel of, 111-12, 116, 152 Luther, Martin, 34, 63-64, 18o Luxemburg, Rosa, 151-52 Luxemburg, Christoph, 137 Maccabeus, Judah, 273-74 McCarthy, Eugene, 179 McCarthy, Mary, 220 McEwan, Ian, 16o Macmillan, Ken, 145-46 Madison, James, 33-34 Maimonides, Moses, 7, 63-64, 111, 210 on circumcision, 224-25 Marjoe, 16o martyrdom, 241, 279 and immorality of religion, 2o8-9 Marx, Karl, 9-10, 214, 273 Marxists, Marxism, 30,92,15,-53,230, 2 49 Mary, 124, 158 biblical fictions and, 111, 114, 116-17 and destructiveness of religion, 22-23 and relationship between morality and religion, 1qo-q1 masturbation taboo, 226-28 Matthew, Gospel of, 109,143 and biblical fictions, III, r15-r6, 118 Memories of a Catholic Girlhood (McCarthy), 220 Mencken, H. L., It o, 250 mental illness, 52-53,64 Mere Christianity (Lewis), 118-1g microcephaly, 95 Mill, John Stuart, 15, 78, 222, 253-54 Miller, George, bo, 162, 169-7o Milosz, Czeslaw, 245-46 3 1 3 Minima Moralia (Adorno), 74 miracles, miraculous, miraculousness, 112,139-53, 161, 165, 170, 178, 18q, 248,266 bodily resurrection and, 141-43 design arguments and, 76, 82-84 in literature, 150-51 Marxism and, 151-53 Mother Teresa and, 145-48 natural disasters and, 148-49 UFOs and, 141,144 Miracles and Idolatry (Voltaire), 139 Misago, Augustin, rq1-92 Mondo Cane, 157-58 moneylending, 212-14 Montesquieu, Baron de La Bride et de, 263 Moon, Sun Myung,249 Moon Tiger (Lively), 265 morals, morality, moral behavior, 6, 1o, 68,73,95-96,114, 123, 150, 153, 159, 171, 281, 283 atonement and, 205, 2o8-io biblical fictions and, 118-2o blood sacrifice and, 205-8, 212 child abuse and, 22o-28 and destructiveness of religion, 15, 17, 2 4 -2 5,32 - 33 and emancipation of India, 181-82 eternal punishment and, 205, 211, 213-15 health issues and, 48, 52 impossible tasks and, 205, 211-5 King and, 175-76, 179 rational resistance and, 256, 264, 266, 271-72 relationship between religion and, 18 4 - 94, 20 5 - 15,229 - 30,242,264 revelation arguments and, 99, m1, 103, 107, 212 Rwanda and, 1 9 0- 93 totalitarianism and, 230, 238, 242 Uganda and, i88-go Waugh and, 186-88 'More Loving One, The' (Auden), 63 Mormons, 51,156, 161-68 converting the dead and, 167-68 corrupt origins of, 161-65 racism of, 166-67 Smith's cynicism and, 165-66 and translating Book of Mormon, r62-64 Moses, 8, 39, 89, 111, 113, 121-23, 140, 192, 224, 245 biblical fictions and, 115-16, 121-22 death of, 105, 171 King and, 174-75 revelation arguments and, 98-,o6 Muggeridge, Malcolm, 145-46 Muhammad, 29,5t, 64, 89, 168, 181, 192, 251, 262 Koran and, 123-24,126-32,134-36, 161 miracles and, 140-41 Mormons and, 161, 164-65 words and deeds of, 127-35 Munyeshyaka, Wenceslas, 191-92 Mussolini, Benito, 235-36 Napoleon I, Emperor of France, 66-67, 245,27 2- 73 natural disasters, 148-49 Natural Philosophy (Paley), 77 Nazareth, 111, 114 Nazis, Nazism, 7, 21, 152, 168, 172, 193, 203, 230, 263 reaction of church to, 2 35 - 43, 247, 25 1 Netherlands, 260-62, 264, 273 New Orleans, La., God Is Not Great: How Religion Poisons Everything 13 Senate Seat for Sale 167 14 Quid Pro Quo 180 15 Fallout:A New Senator 188 16 Impeached 204 1-7 Removal 215 18 Final Curtain 228 Epilogue 235 Index 237 Pay to Play Preface

WHEN Rod Blagojevich was catapulted into the national consciousness it was for far different reasons than he could ever have imagined. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow












44 4
Political Stepping-Stones

tar 198 o, the summer after he graduated from North western, Rod Blagojevich and his friend Mike Ascaridis decided to treat themselves to New York City. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow His father and grandparents raised him in Muskegon, Michigan, after his mother took off for New York. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow The campaign staff the grizzled veterans of hard fought Chicago campaigns and the fresh and idealistic new faces who came on board with the young candidate-was reluctant to have Dick Mell play a highly visible role in the campaign. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow These were the big players in statewide politics, the ones the new kids on the block knew nothing about. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow A new energy permeated Springfield, with an expectation that an oppor tunity for real change was on the horizon. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow I could talk about some of his indiscretions, but I don't plan Pay to Play New Man in Springfield to do that-because I plan to be a strong party chair and work to bring all Democrats together.' Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow Pay to Play New Man in Springfield While the new Blagojevich administration had made promises to reform the state's hiring and firing practices, to many in Springfield its actions looked a lot like old-line political patronage politics-but at a higher price. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow 123 Pay to Play New Man in Springfield White tried to remedy what he regarded as a financial catastrophe by going back to the legislature to try to void some of the governor's actions. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow He, with his gigantic ego, cannot stand that any more, so he jettisons that wife and gets a new trophy wife. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow The new wife is Chris Kelly.' Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow He resigned and headed to New York to become Mayor Pay to Play Michael Bloomberg's campaign manager for his Zoo9 run for a third term. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow By then the governor would be in a position to decide whether he was run ning again, and new fund-raising rules would prohibit contributions from those doing business with the state, making it much harder to raise money. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow Blagojevich, who by then was in the midst of his 2oo6 reelection campaign, called to arrange a meeting with 177 Pay to Play Jackson about the new airport. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow Political corruption was scarcely a new phenomenon in Illinois, but 'selling a Senate seat' or 'shaking down a children's hospital'-that was simply beyond the bounds of what most citizens or even shady politicians could tol erate. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow 15

Fallout: A New Senator THE CHARGES leveled against Governor Rod Blagojevich in Patrick Fitzgerald's criminal complaint stunned the political world, not just in Illinois but across the nation. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow 'He wanted me to go to New York with him because the governor likes to be with one or two people he knows in his close groups. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow Calls for Burris to step down as senator came from Illinois' senior senator Dick Durbin, new Illinois governor Pat Quinn, and many others. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow See also Patti Blagojevich Mell, Dick, ix, 59-61, 65-67, 70, 72, 79, 81, 84, 88 - 89, 93, 189; Patti Blagojevich, defense of, 118; Patti Blagojevich, estrangement from, 3-4, 133 - 134, 136-137; Rod Blagojevich, relationship with, 129-133, 137-138; and Chicago politics, 62-64; Chris Kelly, 244 accusation against, 134; as liability, 129; patronage, use of, 63 Mell, Richard, Jr., 66 Mendoza, Susana, 184, 214 Mercy Hospital, 103; and pay to-play politics, 1o1-1o2 Meyer Davis, Pamela, 98-for Miller, Judith, 11 Miller, Rich, 185 Milosevic, Slobodan, 74-75, 77 - 79 Mondale, Walter, toy-1o6 Monk, Alonzo 'Lon,' 47-48, 83, 93, 1z9, 183, 185-186, 235 Moseley Braun, Carol, 7, 201 Murphy, Matt, 195, 233 Narcissistic personalities, 226-227 National Legal and Policy Center, 186 National Organization for Women (NOW), 71 Navy Pier, 95 Nayak, Raghuveer, 178-179 Ness, Eliot, 7 New Mexico, 141 New York, 141 Nikitovic, Desko, 79 9/11, 92 9/11 Commission, 10 Nix, Sheila, 162 Nixon, Richard M., 37-38, 45 - 47,63,213 Nolan, Jan, 5, 188 Obadele, Bamani, 55. Pay to Play: How Rod Blagojevich Turned Political Corruption Into a National Sideshow Also by Michael Scheuer Imperial Hubris: Why the West Is Losing the War on Terror Through Our Enemies' Eyes: Osama bin Laden, Radical Islam, and the Future of America MARCHING TOWARD FREE PRESS New York London Toronto Sydney FREE PRESS A Division of Simon & Schuster, Inc. 1230 Avenue of the Americas Nm York, NY 10020 Copyright ® 2008 by Michael Scheuer All rights reserved, including the right to reproduce this book or portions thereof in any form whatsoever. Marching Toward Hell: America and Islam After Iraq And for America's best, the U.S. Marine Corps and CIA's clandestine service, men and women who know that the prayer 'May God bless America' must always be completed with the earnest plea, 'and may He damn and help me destroy her enemies:' Acknowledgments In writing this book, I had the indispensable help of several new and much-valued friends. Marching Toward Hell: America and Islam After Iraq Rather than crafting a paradigm Preface appropriate to the new era in America's foreign relations, President Bush always his father's son-launched a last, desperate, and ultimately futile attempt to keep the Cold War-era policy consensus on track and running toward a revamped version of his dad's vague but clearly silly vision of a New World Order. Marching Toward Hell: America and Islam After Iraq In short, bin Laden announced that many Muslims were less inter ested in building a New Jerusalem than in conquering Israeli-occupied Old Jerusalem. Marching Toward Hell: America and Islam After Iraq In other words, if the Democrats win the presidential election in 2008, there is every chance that Mr. Berger will receive a position of trust from the new president; indeed, he is already advising Senator Clinton on foreign policy. Marching Toward Hell: America and Islam After Iraq We never had to conserve ammunition, and there was always something new to try.' Marching Toward Hell: America and Islam After Iraq While presidents George H. W. Bush and Bill Clinton waxed eloquent between 1991 and 9/11 about the New World Order, the positive benefits accruing to all from the progress of globalization, and the irreversible narrowing of differences between peoples of all creeds, cultures, ethnicities, and colors, the United States military was embarrassed by and then driven from Somalia, the World Trade Center was nearly destroyed, two U.S. military facilities were attacked in Saudi Arabia, Osama bin Laden declared war on America in Islam's name, two U.S. embassies were simultaneously destroyed in East Africa, bin Laden declared war on the United States for the second time, U.S. interests and citizens at home and abroad were barely saved when al-Qaeda's millennium-eve plot was foiled, and a billion-dollar U.S. Navy destroyer was nearly sunk in Aden, Yemen. Marching Toward Hell: America and Islam After Iraq Since 1991 the men and women who practice this sort of diplomacy have produced policies that have consistently yielded deadAmericans, undefeated U.S. enemies, and new crops of foes for the United States. Marching Toward Hell: America and Islam After Iraq Roger tells the gentleman to take his pick: quiet down or get up on the dock and fight The gentleman chooses the latter tack, and once the fight begins, Roger proves to be a street-fighter who is unconcerned with the pugilistic niceties the unnamed gentleman had learned in his New York gym and administers to him a bare-knuckled thrashing. Marching Toward Hell: America and Islam After Iraq In the scene, a youthful gentleman from New York City, who is a well-trained boxer and standing on his yacht, loudly demeans and threatens a slovenly-looking writer friend of Hudson's named Roger. Marching Toward Hell: America and Islam After Iraq While it is true that enormous changes had occurred repeatedly in the past, and that weaponry and military communications had obviously evolved toward ever-greater sophistication since the introduction of the longbow and encoded handwritten letters, the studies asserted that the current pace
87 MARCHING TOWARD HELL of technological advance was such that this new edition of the RMA was utterly unique and dangerous. Marching Toward Hell: America and Islam After Iraq Both were dubbed 'new types of war,' but they were new only in the sense that they differed radically from the conflicts MARCHING TOWARD HELL that had occurred during the nearly half-century-long Cold War. Marching Toward Hell: America and Islam After Iraq The building blocks of the American republic-Runnymede, the Glorious Revolution of 1688, Calvinist Christianity, Jefferson's Declara 145 MARCHING TOWARD HELL tion, Madison's Constitution, Hamilton's Federalist, the New Deal, the Vot ing Rights Act, etc.-are Marching Toward Hell: America and Islam After Iraq With bin Ladin, Islam has become an individual project beyond the restrictions of the jurisprudence scholars or of political author ity; a project that this individual could carry with him to the port of Aden or Mombassa, or to the noise of Bangkok or New York. Marching Toward Hell: America and Islam After Iraq The insurgents have cre ated large areas in the south where they operate with impunity and are also in the midst of moving attacks into Buddhist-dominated areas of Thailand; they may have, for example, detonated eight bombs in Bangkok on New Year's Eve 2006, killing 8 and wounding 36, which caused General Son thi to return early from making the Hajj pilgrimage in Saudi Arabia. Marching Toward Hell: America and Islam After Iraq Politics in antebel lum America, for example, confronted such divisive issues as the protective tariff, states-rights issues, banking, slavery, the addition of new states, and the extension of slavery into the western territories. Marching Toward Hell: America and Islam After Iraq July 31, 2008; and Nitin Pai, 'The New Rhadis,' httpJ/www.isn,ethz.ch, Marching Toward Hell: America and Islam After Iraq Francis Fukuyama, The End of History and the Last Man (New York: Free Press, 2006),464: 275 Notes Introduction 1. Marching Toward Hell: America and Islam After Iraq The Secret History of the CIA, 283 Notes Afghanistan, and Bin laden, from the Soviet Invasion to September 10, 2001 (New York: Penguin, 2004). Marching Toward Hell: America and Islam After Iraq When that occurs, bin Laden's strategy of attacking the Amer ican far enemy and then being patient until the U.S. administration of the day suffered more pain than it could stand and threw in the towel will have been vindicated, giv ing the then-victorious Islamist movement a new birth and bin Laden enormously enhanced stature. Marching Toward Hell: America and Islam After Iraq For the Islamists' criticisms of bin Laden's strategy of attacking the 297 Notes United States-the 'far enemy'-and their belief that the U.S. military response would destroy the Islamist movement, see Fawwaz Gerges, The Far Enemy: Why Jihad Went Global (New York: Cambridge University Press, 2005). Marching Toward Hell: America and Islam After Iraq Louise Richardson, What Terrorists Wart: Understanding the Enemy, Containing the Threat (New York: Random House, 2006), 206. Marching Toward Hell: America and Islam After Iraq ' New York Daily News, March 26, 2006. Marching Toward Hell: America and Islam After Iraq New York Times, March 1, 2005. Marching Toward Hell: America and Islam After Iraq 'Islamofascism' term of, 148-49 Netanyahu, Benjamin, 230 Index New Deal, 146,222 New Statesman, 208 New World Order, xiv, xvi, 11, 44,60, 176 NewYorkTimmes, 119,169 New Zealand, 36,222 Nicaragua, 62 Niger Delta Development Commission, 174 Nigeria, 94, 153, 158, 168, 183, 260, 276n, 312n Islamic insurgency in, 172-74 9/11 Commission, t2-16,17,37,61, 78, 273n, 274n-75n, 280n 9111 Commission Report, 271n, 274n, 284n, 289n, 290n, 303n Nixon, Richard M., 24, 25, 28, 100, 193 Nixon administration, 30 nongovernmental organizations (NGOs), 65, 67, 109, 139, 195, 294n Islamic, 169, 171, 172,175,185-86, 295m 306n North Atlantic Treaty Organization (NATO), 39, 61, 64, 66, 73, 84, 92, 93,100,107,125,131 9 143;165, 185,192,197,202-3,234,278n North Caucasus, 168-70, 183 Northern Alliance, 64, 114, 130, 293n North Ossetia, 168 nuclear proliferation, 59 Islamists and, 73-74 U.S. India relationship and, 150 see also weapons of mass destruction Nye, Joseph, 71, 140, 286n, 302n Oakley, Phyllis, 39 197-98, 269, 287n, 291n, 293n, Oakley, Robert, 39-40 318n Obama, Barak, 152 Predator (UAV), 280n oil embargo of 1973, 19-20,28-29, Prodi, Romano, 201 231 proportional response, doctrine of, Omar, Abdulgarim, 313n ' 74-77,81,82-86,193-94 363 Omar, Mullah, 69, 110, 253, 281n, 291n, 297n O'Neill,John, 279n,280n Operation Enduring Freedom, 102 Organization of American States (OAS), 92 organized crime, 59 Paine, Thomas, 79, 101, 117, 145, 257 legacy of, 99-100 Pakistan, 36, 38,44,62-63,64, 83, 103,106,124-25,130,150,166, 170,237,256,296n-97n,301n, 320n Afghan War and, 111-14,115 ISID of, 111, 171-72, 295n U.S. interests and, 167-68 Palestine, 28, 51 Palestine Liberation Organization (PLO), 31-32 Panama, 128 Panshjeri, Abu Ubayda al-, 112 Papua-New Guinea, 222 Paul, Ron, 204-5, 215-18 PAnvitt, James, 294n Pax Atomica, 77-78, 79, 92 Perle, Richard, 120, 275n Peru, 63 Peter;, Ralph, 87-88, 189, 295n-96n, 309n Pew Trust polls, 83, 155, 207 Phases, Walid, 80 Philippines, 33,44, 141, 150, 192, 204 Pipes, Richard, 57 popular culture, 71 Popular Defense Forces, Sudan, 32 Powell, Colin, 11, 42, 101, 102-3, 362 Index Index Protestant Reformation, 163, 268 Provincial Reconstruction Teams, 108 Pulaski, Casimir, 79 Putin, Vladimir, 62, 195-96, 230-31 Qaddafi, Muammar al-, 81, 231, 3007 Qatar, 123 Rains, Claude, 103 Ramadan, Tariq, 161 Rashid, Madawi al-, 161-63, 3077 Reagan,Ronald, 21,42,43,55,56-57, 75, 80,84, 92, 214, 247, 2837 Cold War and, 5-6 Reid, Harry, 214 religion, 66, 70, 94, 269 in Europe, 179-80 U.S. 's roots in, 281n-827 rendition program, 207, 3167-187 Republican Party, U.S., 4, 17, 29, 70-71,72,74,109,139,142,186, 203, 216, 219 Reuters, 173 Revolution in MilitaryAffairs (RMA), 87-94,185,2897 insurgents' weapons and, 88-89 Peters's analysis of, 87-88 targeting of bin Laden and, 90-91 Reyes, Silvester, 2977 Reykjavik Summit, 6 Rice, Condoleezza, 101, 102, 128, 197, 269,2937 Roberts, Lord Frederick, 110-11, 295n Robertson, Pat, 2857 Robinson, Daniel, 27 Rolenz, Michael, 2807 , Roman Catholic Church, 163 Roosevelt, Franklin D., 214, 222, 239 Roosevelt, Theodore, 214 Rumsfeld, Donald, xiii, 101, 105, 137, 138-39, 197, 238, 269, 2897, 2967 Rushdie, Salman, 156, 234 Russia, 62,73,98,111,181,230,3167 Chechnya conflict of, xvi, 150, 168-69,207,230 Islamic NGOs and missionaries in, 169-70 North Caucasus region of, 168-70 nuclear arsenal of, 169, 259 see also Soviet Union Sada Military Academy, 112 Sageman, Marc, 3017-2n Sakharov, Andrei, 79-80 Saladin, 165, 226, 241, 323n Salafi Group for Call and Combat, 135 Salafism,113,171,178,185 Samaritan's Purse, 184 Santayana, George, 187 Saud family, 71, 261 Saudis (airline), 133 Saudi Arabia, 1, 10, 13, 15, 17, 23, 28, 31,51-52,53,60,73,74,118, 122, 123, 124, 125, 151, 153,158, 163, 167, 169, 171, 172, 175, 178, 193,205,217,222,232,241,251, 260,274n, 2767, 2827, 2877-887, 2977, 3007, 3017, 3197 Afghan War and, 111 Gulf War and, 41 oil embargo of 1973 and, 19-20, 28-29,132,231 September 11 attacks and, 72 and spread of militant Islam, 185-86 U.S.'s alliance with, 71-72 Yom Kippur war and, 24 Sayyaf, Abdur Rasul, 112 Schoenfeld, Gabriel, 219-20 Schwarzkopf, Norman, 42 Scowcroft, Brent, 43 SEATO (Southeast Asia Treaty Organization), 92 Second Iraq War, see Iraq War Senate, U.S., 69, 203 September 11, 2001 terrorist attacks, - xiu, xvii, xviii, 19, 21-22, 31, 44, 53, 59, 63,64, 69, 74, 102, 103, 110, 228, 235, 256, 3187, 3237 expected Arab street uprising and, 190-91 and failure of 9/11 Commission, 12-16 Muslim world's reaction to, 2937 national security obsession and, 3, 5 Saudi complicity in, 72 U.S. Israel policy and, 21-22, 24 U.S.response to,194,195-96, 197 Western unity after, 197-98, 202-3 Serbia, 125 Shell Oil Co., 174 Sheridan, Philip H., 75 Sherman, William T., 97, 141, 147 Shias, 32, 83, 132, 166, 167, 237, 238, 256,2897 Sunnis' schism with, 119-21, 130-31,136,262 signals intelligence (SIGINT), 91, 2817, 2907, 2957 Simon,James 8,211 Simon, Steven, 142-43, 221, 2837-867 Social Security, 25, 224, 252 Society for the Revival of the Islamic Heritage, 171 soft power doctrine, 139, 286n, 3027 in Cold war, 70-71 in Iraq War, 14041 in posf-Cold War era, 69-72 So1zhenitsyn,Aleksandr,79-80 Somalia, 32,60,75,109,141,168, 176-78,183-84,188,192,193, 198, 233, 239, 243, 2787, 3137 Ethiopian invasion of, 177-78,231, 3147-157 Somali Transitional Federal Government, 177 Sonthi Boonyamtglin, 175-76 Soros, George, xiv Soviet Union, xv, 2; 5, 6, 22, 55, 56-57, 66, 90, 92, 109, 120, 143, 193, 231,259 in Afghan conflict, 33, 37-39, 57, 107,133-34,158,2827-837 collapse of, 43-4, 59, 62, 88, 93 see also Russia Spain, 201, 222, 228 Stampp, Kenneth M., 210 State Department, U.S., 79, 127, 2867, 3177 Steele, Michael, 216 Stein, Jeff, 119-21 Stevenson, Adlai, 44 Steyn, Mark, 180,181-82, 286n Strauss, Leo, 2757-767 Sudan, 17, 32, 35,68, 178, 2787 Darfur conflict of, 65-66,183-84 Khowst complex raid and, 76-77, 3167 Sudam, Abu Talha al, 3137 Suhail, Abu, 36, 2777 Sulawesi, 153 Sumtis, xiv, 9, 32, 45, 83, 95, 121, 123-25,132,152,166,167 9 190, 196, 237, 238, 256, 2897, 3227 Shia schism with, 119-21, 130-31, 136,262 Sun Tzu, 10, 97, 236 Supreme Court, U.S., 211 Syria, 32,43,118,125,131,138,167, 241-42,298n Iraq Way and, 123-24 takfiris, 3227 Taliban, 11,40,64,68,69,93-94, 100, 101-2,103,104,107-8,113,114, 115, 128, 130, 156, 166, 171, 192, 194, 230, 233,253, 256, 2747, 2857, 2867, 2917, 3097 Taney, Roger B., 211 Tanzania, 76 364 365 Index Tenet, George, 15, 16-18, 82, 89-91, - 101,104,194,271n-72n,273n, 274n, 284n, 285n, 294n terrorism, 59-60, 89,247 bin Laden on, 326n Iran and, 297n-98n training camps of, 32-35 see also al-Qaeda; Islamists; war on terror; specific acts Thailand, 134, 141, 158, 168; 183, 202 Buddhist-Muslim conflict in, 174-75 Islamic insurgency in, 174-76 Thaksin Shinawatra, 175, 202 Thanat-Rush Communiqu6 (1962), 176 Thatcher, Margaret, 43, 75 Third World, 94-95,167 Tocqueville, Alexis de, 223-24,269 Tocqueville and the American Experiment (Cook), 223 Tomsen, Peter, 39,279n Treasury Department, U.S., 37 Truman, Harry S., 143 Tunisia, 135, 199 Turkey, 124-25, 183, 241, 254, 301n Turki, Prince, 111, 232, 287n Turner, Ted, 252 Twetten, Thomas, 39 Uighur Muslims, 150,230-31,319n Union Oil Company of California (UNOCAL), 68,285n United Arab Emirates, 123, 158, 232 United Liberation Front of Assam, 172 United Nations, xiv, 26, 39, 43, 48, 58, 63,64,92,109,139,173,198, 199,247 Somalia intervention and, 176-77, 178 United States: Afghan-Soviet conflict and, 37-39 al-Qaeda threat and, 78-79 Bangladesh as concern of, 168, 170-72 bin Laden's declarations of war against, xv-xvi, 53,60,63-64, 212,305n,307n-8n Christian roots of, 281n-82n Cold War mindset of, 78-79 congressional war powers issue in, 242-43 Darfur intervention and, 65-66 democracy and nation-building and, 39-41 energy dependency of, 19-20, 28-30,31,53,74,217,251-52, 259-61,276n energy policy of, see. Marching Toward Hell: America and Islam After Iraq As a collector of investment books, I'm reminded often by their titles how intimidating investing can be: Why Most Investors Are Mostly Wrong Most of the Time, by William X. Scheinman Why the Best-Laid Investment Plans Usually Go Wrong, by Harry Browne Wiped Out How I Lost a Fortune in the Stock Market While the Averages Were Making New Highs, by 'Anonymous Investor' Investment Policy: How to Win the Loser's Game, by Charles Ellis Wall Street: the Other Las Vegas, by Nicolas Darvas What's Your Business? 1; 1 recall a comment once made about the investing public by Peter Lynch, who ran the Fidelity Magellan Fund, the most successful mutual fund in the 1970s and 1980s. Investing in One Lesson Sales are climbing, new deals are being made around the world, and profits are soaring. Investing in One Lesson All securities were new issues once! Investing in One Lesson A week after the Sep tember 11 terrorist attacks, when the New York Stock Exchange reopened, the Dow fell 7 percent. Investing in One Lesson Note that none of these rea sons have anything to do with current earnings, sales, new products, or the debt of the company, although they may affect future financials. Investing in One Lesson official buy or sell recommendations Major brokerage firms and regional security companies issue frequent buy and sell recommendations, and a new announcement of an The Perversity of 'Mr. Investing in One Lesson The danger lies in not knowing when the fad will end or what new one will take its place. Investing in One Lesson I attended the annual New Orleans Investment Confer- The Plungers and the Peacocks bt ence, sponsored by Jim Blanchard. Investing in One Lesson The shares of the origi nal S&P 500 firms have, on average, outperformed the nearly 1,000 new firms that have been added to the index over the subsequent half century.' Investing in One Lesson We noted that despite better growth data year after year, old-fashioned The Strategy 87 Standard Oil earned a higher total return than the new economy stock IBM. Investing in One Lesson They have a financial incentive-a large commission-to sell The Strategy 93 you a new issue. Investing in One Lesson OTHER BOOKS BY MARK SKOUSEN

The Complete Guide to Financial Privacy High Finance on a Low Budget, co-authored with Jo Ann Skousen Tax Free Scrooge Investing The Making of Modem Economics The Power of Economic Thinking The Big Three in Economics The Compleated Autobiography by Benjamin Franklin, compiler and editor ACKNOWLEDGMENTS

The lesson of this book is derived from the relatively new science of 'behavioral economics,' and I wish to thank in particular Jeremy Siegel at the Wharton School at the University of Pennsylvania, whose research has been invaluable, as well as Robert Shiller at Yale Univer sity and Richard Thaler at the University of Chicago. Investing in One Lesson Market,' 31-47, 58, 62, 122, 142 Municipal Mortgage & Equity (MMA), 109 mutual funds, 5, 14, 62-63 My Own Story (Bernard Baruch), 141 N Nasdaq Stock Market, Inc., 28-29 national mood, 53 Neill, Humphrey B., 75, 77, 81 net worth, 32, 121 new economy stocks, 64, 71-72 new issues, 43, 92-93 New York Stock Exchange (NYSE), 14, 23, 28, 34, 39 New York Times, 99 Ney, Richard, 73 Nickerson, Bill, 138 No Experience Necessary: Make $100,000 a Year as a Stockbroker (Bruce Eaton), 63 Novell, 25
0 O'Higgins, Michael, 105 One Up on Wall Street (Peter Lynch), 50, 70 Oracle, 25 Orman, Suze, 145 Overstone, Lord, 12
P Pengrowth Energy Trust (PGH), 110 perceived value, 32 permanent portfolio, 115-25, 144 Permanent Portfolio Fund, 124 Personal Finance, 6 portfolio: diversified, 52, 101-3,115-16,122-25, 144; growth of, 118-20; permanent, 115-25, 144; threats to, 121-23 PowerShares High Yield Divi dend Achievers (PEY), 105 Price, Michael, 76 price/earnings ratio (P/E), 52, 56,71-72 prime rate funds, 127 privately held stock, 25-27, 37 Provident Energy Trust (PVX), 110 publicly traded company, 23-32, 46. Investing in One Lesson -Michael Panzner Financial Armageddon 'As Wall Street wizards were turning into welfare kings, Barry Ritholtz was there to chronicle every new outrage on his blog, The Big Picture. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Now he's focused on the really Big Picture-how we got into this mess-with his great new book, Bailout Nation.' Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 21 22 BAILOUT NATION Government assistance was more likely to be made available dur ing the birth pangs of a new industry-not during a single company's death rattle. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy There are some similarities between the government's response to the current crisis and Franklin Delano Roosevelt's New Deal, particularly the seemingly endless array of new programs with acronyms like TARP 24 BAILOUT NATION and TAFFY But massive government response to a crisis is the effect. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy New Deal Programs Year Act or Program Acronym Enacted Significance Agricultural AAA 1933 Protected farmers from price drops Adjustment Act by providing crop subsidies to reduce production; provided educational programs to teach methods of preventing soil erosion. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Surely it could have been willing to take chances on some new designs that would break free of the stodgy old boring boxes put out by Detroit in the 1970s and 1980s. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy In the so-called new era, however, valuation mattered little. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The Fed chair applauded the notion that a 'new economy' had emerged. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy New technologies had captivated the American imagination, creating instant millionaires and more than a few billionaires. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy While the Japanese are culturally much more likely to save than Americans are, they had taken frugality to new extremes. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Wall Street could take all manner of debt-credit cards, auto loans, mortgages, student loans-and repackage them into new bundles of new paper. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The new rules would force mortgage companies to show that customers can 148 BAILOUT NATION 46 realistically afford their mortgages. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Borrowers would be able to sue their lenders if they violated the new rules, though home buyers would be allowed to seek only a limited amount in compensation. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 211 212 BAILOUT NATION City Bank of New York was founded in 1812. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Let's flash back for a mo ment to 1989 when Citi took what the New York Times called 'another step in the battle to unshackle the banking industry from the restraints o£ the Glass-Steagall Act': In a securities deal announced last week, Citicorp, the bank holding company, said it was issuing $47 million of mortgage-backed securities through its Citibank Delaware Inc. subsidiary. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The move was aimed at avoiding-some say circumventing-a Federal court order that would have blocked the New York-based Citibank from issuing securities backed by residential mortgages originated by the bank. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The Texas Republican was aided in his deregulatory quest in part by Senator Chuck Schumer, a New York Democrat. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Perhaps Schumer represented the interests of New York's Wall Street too well. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy B Casting Blame 239 Let's get specific as to the sort of warnings the White House ignored: Bank regulators had proposed new guidelines for writing risky loans in 2005. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Why was there no credit or housing meltdown from 1977 to 2005? Why did dozens of other countries, from the United Kingdom to much Misplaced Fault 255 of Europe to New Zealand and Australia-none of which are covered by American laws such as the CRA-have a remarkably similar housing boom and bust to the U.S. one? The pundits fail to address these ques tions. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy The FDIC steps in and seamlessly transfers control of the assets to a new owner, while simultaneously wiping out the debt and the shareholders, and giving a big haircut to the bondholders. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy SOURCE Strip's classic design 0 2008 Stereohei/JCC Postscript Advice to a New President There can be few fields of human endeavor in which history counts for so little as in the world of finance. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy If the U.S. had a new policy to issue rapid green cards (with all the usual security checks) to immigrants willing to buy a house or apartment Advice to a New President 289 for $200,000 or more and to eliminate overseas earnings from tax for 15 years, we could get a flood of good inunigrants, with skills and assets, providing an immediate catalyst in soaking up the surplus of unsold housing inventory. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy S Advice to a New President 291 On a related note, Robert Lenzner of Forbes suggests: 'Get together a FASB-like institution for the SEC; populate it with wise men and lions with no axes to grind, such as Paul Volcker, Felix Rohatyn, and John Whitehead; and decide how to handle the treatment of the bank losses.' Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy What is not open for debate is the state of the economy, and we can no longer just label this a recession after the latest string of shockingly negative employment Advice to a New President 293 294 BAILOUT NATION reports. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Advice to a New President 295 Several people, including Greenspan's Bubbles contributor Fred Shee han, suggested disbanding the Federal Reserve entirely. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Why Bubbles Are Great for the Economy (New York: Harper Collins, 2007). Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Eric Lipton, 'Gramm and the 'Enron Loophole,'' New York Times, November 17, 2008, www.nytimes.com/2008/11/17/business/17grammside.html. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Roger Lowenstein, When Genius Failed: The Rise and Fall of Long-Term Capital Management (New York: Random House, 2000). Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Edmund L. Andrews, 'Greenspan Concedes Error on Regulation,' New York Times, October 23, 2008, www.nytimes.com/2008/10/24/business/ Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 138, 213, 235,237 Home Mortgage Disclosure Act o£ 1975, 254 Home Owner's Act of 1933 (HOLA), 27,29 National Banking Act, 17 National Currency Act, 17 National Industrial Recovery Act (NIRA), 29-30 New Deal, 24-26 Patriot Act, 244 Rail Passenger Service Act, 37 Regional Rail Reorganization Act of 1973,37 Sarbanes-Oxley, 151 Securities Exchange Act, 31 Securities Litigation Reform Act of 1995, 150 Social Security Act, 31 TARP, see Troubled Assets Relief Program (TARP) Tax Relief Act of 2001, 91 Telecommunications Reform Act of 1996, 150 Wagner Act, 31 Lehman Brothers: acquisition by Barclays, 219 failure of, 132, 136-137, 141, 144-145, 154-155,177-178,190,192-193, 200,204,206-208,211,225,232, 239,252-253,255 Lending standards, 120-121, 131, 145, 147, 207, 243, 252, 268 'Lend to securitize,' 120-121, 132, 145, 207,244 Lenzner, Robert, 291 Leverage, 71, 73, 98, 162, 197, 209, 224, 232,248,252-253,288 Leveraged buyouts, 69, 189 Levitt, Arthur, 138 Lewis, Kenneth, 200, 219 Liability, 4, 6, 136, 156-151, 205, 244 Liar loan, 125-126 Liddy, Edward, 200 Life insurance, 278-279 Lincoln, Abraham, 22 Lines of credit. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy See also Bush Administration National Labor Relations Board (NLRB), 31 Nationally recognized statistical rating organizations (NRSROs), 157-158 National Monetary Commission, 19 National Recovery Administration (NRA), 30 National reserve system, 17 National Youth Administration (WA), 30 Natural disasters, economic impact of, 18, 218 Naughty Child Index, 206-207 Index 327 Net capital rules, 143-144, 157, 241 Net Portfolio Maiden Lane LLC, 181 Netscape, 63, 196 New Century Financial Corporation, 256 New Deal: components of, 23-32 cost of, 3 public acceptance of, 24-25 New Economy, 79 New products/product lines, 197 New York Federal Bank, 220 New York Federal Reserve Bank, 55, 72, 179,223 New York Mercantile Exchange (NYMEX), 140 New York Stock Exchange (NYSE), 54-56,66,68,86,241 Nifty Fifty stocks, 65 NINJA loans, 126,251 Nixon, Richard, 36 Nixon Administration, 37 No-doc (no-documentation) loans, 125 No-money down mortgages, 126, 129, 239 No-money-down, no-income-check mortgages, 255 Nomura Securities, 191 Nondepository mortgage originators, 120-121 Non-farm payroll reports, 91, 278 Nonfeasance, 102, 133-148 Notional value, 114 Nuclear energy facilities, 292 Obama, Barack: advice for, 287-296 economic recovery strategies, 180 national health insurance, 166-167 Obama Administration. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy For information, ad dress HarperCollins Publishers, 10 East 53rd Street, New York, NY 10022. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Two days earlier, the front page of the New York Times re ported that Cheney might be called to testify in the trial of his 8 former chief of staff, Scooter Libby. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President The SCS was a bureau of the U.S. De partment of Agriculture, created as part of Franklin Delano Roosevelt's New Deal. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President They couldn't get to holiday gatherings back in Casper; instead, they spent Thanksgiving and Easter of their freshman year with Jim Little and his family in New Jersey. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Even for someone who had been-and would be-known for his equanimity, it was an other disturbing new low. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Now, almost four years after the ex citement and anticipation of that first cross-country train trip to New Haven, Cheney found himself alone in jail, left to contem plate everything that had gone wrong. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Drummy had taken a new job in Washington, working for Representative Bill Steiger, a young Republican from Wisconsin. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President In a nod to Cheney's academic background and his experience in state politics in both Wyoming and Wisconsin, Steiger promised his new hire a meaty role in sub stantive legislative work-and a desk in the congressman's per sonal office. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President 62 The new policy would affect every aspect of the U.S. econ omy, from the price of a meal in Seattle to the rent of a one bedroom apartment in Tuscaloosa to the salary of a laborer in Hanover, New Hampshire. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President In his speech, he 64 provided an overview of phase 2, but the lack of planning at Camp David meant that the details of those regulations were left to his new team. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President 'Rea gan was opposed to welfare reform, the new income supplement program, and national health insurance,' Cheney wrote in his strategy memo. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President 'A clue to the character of Richard B. Cheney, President Ford's new chief of staff,' wrote Dom Bonafede, of the Nationaliournal, 'is evident in his refusal to accept Cabinet status as one of the perquisites of his position.' Cheney: The Untold Story of America's Most Powerful and Controversial Vice President On a popular new television show, Sat urday Night Live, the actor Chevy Chase made a name for him self by impersonating Ford, tumbling down a flight of stairs at the beginning of the show or, later, bumping into a desk. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Among the new members were several legislators who would 142 still be serving in Congress almost thirty years later: Jerry Lewis from California, Olympia Snowe from Maine, and James Sensen brenner from Wisconsin. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Representa tives from New Jersey, Pennsylvania, and Florida were filmed 748 accepting briefcases full of cash in exchange for their promises to support immigration legislation pushed by a wealthy-but entirely fictitious-Arab sheikh. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President George H. W. Bush won the Iowa caucuses, delivering what the Washington Post called a 'major setback' 63 to Reagan, but six weeks later Reagan regained his footing with his unexpected 150 twenty-seven-point victory over Bush in the New Hampshire primary. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Two other young Republicans-Jack Kemp from New York and Trent Lott from Mississippi-had already de clared their intention to seek other leadership posts and were 156 favorites to win. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President That it came in public during the new secre tary's first press conference made it extraordinary. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Senator John McCain, who had defeated Bush 178 in New Hampshire only to lose the nomination in a bitter and sometimes personal fight, said repeatedly that he did not want to be considered. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President With each new 300 court filing came an extended press conference, each side accus ing the other of dishonesty and willfully excluding the votes of Floridians. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President 330 An inexperienced pilot? A wrong turn? Bad weather? The last of these seemed unlikely; it was a beautiful day in New York City, as it was in Washington. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President 356 But Cheney spent most of this time on the new war on terror. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President R. W Apple of the New York Times wondered whether the United States was destined to lose. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President In his eight years out of government, there had been an 364 influx of new leadership and new technology. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President 'Panel finds no Qaeda-Iraq Tie,' blared a headline in the New York Times. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President 'Nor has there been a seat for the previous two New York Times reporters sent 45 0 to cover the vice president. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Wolfowitz spent time with Keller for a long piece he wrote for the New York Times magazine. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President CHAPTER SIXTEEN

Dick Cheney: New Democrat?
O ne month after Bush and Cheney were reelected, the vice president traveled to Afghanistan to represent the U.S. gov ernment at the inauguration of newly elected President Hamid Karzai. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Cheney was concerned that public discussion of perma nent U.S. military bases in Afghanistan could have an unwelcome ripple effect in Iraq, where the first national election was sched uled in a little more than a month, by making new voters there wary of endorsing candidates sympathetic to American causes. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Because on the one band I think we have an obligation, we Americans, if we go in and take down a 474 government to do the best we can to stand up a new one in its place that meets the standards and principles that we be lieve in. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President '411 493 CHAPTER SEVENTEEN
'The Alternative Is Not Peace'
A s Cheney and his colleagues entered the final three years of Bush's presidency, they faced a new problem. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President But it strikes me that the Corpus Christi Caller-Times is just as valid a news outlet as the New STEPHEN F. HAYES York Times is, especially for covering a major story in south Texas.'' Cheney: The Untold Story of America's Most Powerful and Controversial Vice President John H. Cushman and Thom Shanker, 'A War Like No Other Uses New 21st-Century Methods to Disable Enemy Forces,' New York Times, April 10, 2003. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Rick Lyman, 'Desperately Seeking Dick Cheney,' New York Times, September 19, 2004. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President See also foreign policy; intelligence issues; war on terror Grenada invasion, 174-77 Iran and, 270-72 Iran hostage crisis, 145-46, 157-58 Iraq policy and homeland security, 317-23,354 national security framework, 348-52,354-56,491-92 Ronald Reagan Administration, 166-69 Soviet relations, 200-202 Natrona County High School, 7-9, 19-26,124,139,286 Naughton,Jim, 117-19,134 Nebraska, 11-17 Negroponte, John, 517-18 Nelson, Bill, 287-88 Nelson, Harding, Yeutter, and Leonard law firm, 124 Nelson, Paul, 363 Nessen, Ron, 80, 83, 90-91, 98, 100, 103,104-5,116,117,120 New Mexico, 453-55 news media. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President See media relations New York Times, The, x-xi, 450-52, 483-84 Nicaragua, 163,190-200 Nicholas, Dave, 25 Niger uranium deal, 368-69, 389-90, 397-99,408-22 9/11 Commission Report, vii, 439-40. Cheney: The Untold Story of America's Most Powerful and Controversial Vice President The Man Who Owns the News ALSO BY MICHAEL WOLFF Autumn of the Moguls Burn Rate Where We Stand (with Peter Rutten and Chip Bayers) White Kids Broadway Books I Neu, York Copyright 0 2008 by Michael Wolff All Rights Reserved Published in the United States by Broadway Books, an imprint o£ The Doubleday Publishing Group, a division of Random House, Inc., New
York. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch My first stroke of good fortune happened when my daughter Elizabeth introduced me to her colleague Leela de Kretser, a reporter at the New York Post. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch well, look at these: 2 I MICHAEL WOLFF He had mock-ups of full-page ads that, he was thinking, should run in all the Wall Street Journal's competitors-particularly the New York Times and the Financial Times-on the day he took over the paper. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 'We might,' he said one afternoon as he considered his new conquest, MICHAEL WOLFF 'have to let people go just to make a point.' The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Not too long after this, I wrote a column not just attacking the New York Post but analyzing its vast business failures and concluding that, by any logic, Murdoch must shut it down (wrong again). The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Mai Who Owis the News I i i When I became the media columnist at New York magazine, in 1998, my first column was about Murdoch's imminent divorce from Anna, his wife of thirty-two years. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch This resulted in a vendetta by the New York Post-not, as it happened, against me but, with greater effective ness, against New York magazine's then parent company, Primedia. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Mao Who Owns the News 1 1 3 dining room, where we shared his health food drinks, or at his Manhattan home on Park Avenue-his temporary home while his new apartment on Fifth Avenue is being refurbished-when his wife was away and he was looking after his children. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Butterfly Effect THE EARLY 19705 Without any firm plans and only some old family contacts, forty two-year-old Rupert Murdoch, an Australian publishing entrepre neur relocated to Britain-not the most savory one either; reports of the 'Page 3' bare-breasted pin-ups in his London newspaper precede him-starts traveling regularly to New York in 1973, look ing for business opportunities. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Where Bloomberg was clever and fast and satisfying, slicing and dicing data in all sorts of new ways, Telerate was kludgy and slow and so often infuriating. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Either the current wife wants what the former wife was entitled to and Murdoch is giving it to her, or Murdoch him self wants to show that he is powerful enough not to have to go down a separate tangent, live downtown, just because he has a new wife. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch joints (which qualifies by proximity and bad food) where Rupert and Lachlan, often with New York Post editor Col Allan, had their regular Friday lunch. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch In 1997, Andy Steginsky, a money manager in Princeton, New Jersey, met Billy Cox through their mutual support of the New Jersey Symphony, just before Billy began stirring up trouble in the Bancroft family. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Mal Who Owis the News 177 Arthur Sulzberger Jr., for instance, who first petitioned Peter Kann for a Dow Jones-New York Times Company merger after the Telerate disaster in 1997, was back with the same message after the 2000 Time Warner merger with AOL. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 88 I MICHAEL WOLFF The Bancrofts recall-in a rather jolly, pleasantly nostalgic, hard-to-suppress-a-giggle way-nothing so much as the unrecon structed New England patrician, remote and snobbish. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch On the other hand, one solution (or effort to mollify) that Hemenway and Barnes has proposed is to create a voting trust similar to the one the Sulzberger family has at the New York Times-in essence, pledging the family to vote together-which would allow the Bancrofts to sell down more stock but continue, with their secure voting bloc, to maintain con trol. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Then there's the move to New York-she's fifteen and suddenly plunged into the Manhattan private school world at Dalton. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch She's way out of her element among the New York rich kids. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch But 98 MICHAEL WOLFF it's also that Elisabeth is growing up in New York-a particular age in New York when so much of the focus, especially in the circles she and her family move in, is on the success, achievement, advan tages, and connections of the children as well as the parent. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Among his closest friends in the company is Col Allan, 102 I MICHAEL WOLFF the boozing, bad-tempered editor of Sydney's Daily Telegraph, whom Lachlan later appoints as editor of the New York Post. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Man Who Owns the News 1 137 The Wall Street Journal, along with the New York Times, has stayed safe, in part, because people fear having their good names compromised if they go after it. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Years later, when biographers look at Murdoch's beginnings in New York, they will cast Squadron as a legal power broker. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 1 4 8 I MICHAEL WOLFF Murdoch's first two deals in New York, with Dorothy (Dolly) Schiff of the New York Post and Clay Felker of New York maga zine-both of which shock the city, both of which seem to occur in the dead of night-are about his charms and skillful manipulations. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch In the history of New York schools and the The Mai Who Owas the News 1 151 connections they facilitated, none may be so profitable as the intro duction of Stan Shuman of Allen and Company to Rupert Mur doch at a parent function at the Dalton School, where Shuman's son Michael, and Murdoch's son Lachlan, both five, are in kinder garten together. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Actually, many other people in New York, in its journalism and media community, in its political circles, are relieved too-the anemic Post is about to be rejuvenated. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch to a foreign publishing conglomerate controlled by a man whose journalistic The Man Who Owns the News 1 157 approach appears alien to us and whose commitment to our city is untested,' declare 'the editors, writers, artists, and photographers' of New York magazine in a letter to the board of directors. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Murdoch takeover of New York magazine is the big first event in one of New York's pivotal and fateful years: 1977 (Son of Sam, the blackout and subsequent riots, and the city's brush with 16o I MICHAEL WOLFF bankruptcy). The Man Who Owns the News: Inside the Secret World of Rupert Murdoch and is certainly not a paper of general appeal,' noted the New York Times when the Journal surpassed the Daily News to become the nation's largest-circulation daily paper. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch He focuses, briefly, on making a bid for Newsweek, the newsmagazine owned by the Washington Posy but is talked out of it by Ed Kosner, his New York magazine editor, who spent much of his career at Newsweek. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Journal's profiles of such individuals will come to define the era; a piece the Journal runs on Carl Icahn high lights the paper's soon-to-be-classic use of anecdote, recounting the New York financier's shouting match with C. E. Meyer Jr., the pres ident of TWA, in a 'half deserted bar at the Waldorf-Astoria hotel.' The Man Who Owns the News: Inside the Secret World of Rupert Murdoch As early as 1977, after the acquisition of the Post and New York, he had the Squadron, Ellenoff lawyers research just what it would take for a foreign national to buy stations in the United States. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch million purchase in 1978 included New York and New The Man Who Owes the News I ~8 9 West magazines, now fetches, on its own, $55 million. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Meanwhile, other, lesser providers of business information not least of all Michael Bloomberg's new company and Reuters- 194 1 MICHAEL WOLFF are servicing the business information customer with much more specific, efficient, accessible data for which they can charge a hell of a lot more. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch veteran and Murdoch family favorite-was regularly provided with liquor and sex at a New York strip club. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Upscale-centric New York advertisers treat the Post and its three-ring-circus sensibility with contempt. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch (When Pete Hamill, an old-school New York journalist, was told about the supposed accident, he responded: 'Was it his writing foot?') And another: A fresh-faced copy kid shows up for work early at the Post's offices on Sixth Avenue and finds Dunleavy in his usual position, passed out under his desk. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Los Angeles from New York, a move the New York Times found significant enough for a front-page story. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Steele, fifty-eight, a liberal New England aristocrat (in 1996, Forbes named her mother, Jane Bancroft Cook, as the wealthiest woman in Massachusetts) living outside of Burlington, Vermont 222 I MICHAEL WOLFF (an alternative-lifestyle capital), and running a 'sustainable and socially conscious redevelopment company,' is the Bancroft family member who, by nature, is most repelled by the very idea of Murdoch. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch And sure enough, that broadening and softening could just as easily define the transformation of, for starters, Time mag azine and the New York Times. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 238 I MICHAEL WOLFF Here is a real-time report on Murdoch in the New York Post news room, detailed as it occurred, sent to me minutes after it happened: He slips into the newsroom just after 3:00. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Murdoch, during the investigation of Conrad Black, promised to go easy on the story (killing at least one aggressive story in the 248 I MICHAEL WOLFF New York Post) if, in return, Black's Telegraph airbrushed criticism of Murdoch's decision to appoint his thirty-year-old son CEO of BSkyB. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Pearson, for its part, owns the Financial Times, which will face a new competitive threat from a Murdoch-owned Journal. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch GE, the parent of NBC, also owns CNBC, which Murdoch's new cable business channel will compete with. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch They're proud and determined ideologues-ideologues (at least on their best days), not partisans (the Journal editorial pages eviscer ated George H. W Bush when he abandoned his no-new-taxes pledge-arguably costing him a vital part of his base, and hence his presidency). The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Her name is Marian Faris Stuntz, otherwise known as Cita--she's a Democrat, working for then New York gov ernor Hugh Carey-and she begins to give him a tutorial on New York state government. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Having just bought the Post and New York magazine, and not hav ing found any sort of like-minded brotherhood in New York, Murdoch now has Irwin. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch It's a hard, humiliating business that shapes the Blair can didacy and defines New Labour. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Peter Chernin, in a new executive building erected on the Fox lot in Los Angeles, has built himself a true media-lord spread. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Marcus Brauchli, the new managing editor, who had officially taken the newsroom reins from Paul Steiger on May 15, was the most active participant in designing this instrument, which would, in the end, not protect him at all. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch His very inclinations and personality may be the prob- The Man Who Owes the News 1 2 95 lem-his need for constant change and new conquests. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Man Who Owns the News 13o 1 He gets his New York Post back in 1993. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Indeed, the only real material development of this partnership is something called iGuide, which opens fabulous offices on West 17th Street in Manhattan, instantly becomes the leading technology company in New York, meant to compete with AOL and Prodigy (its true com petitor will be the barely imagined Yahoo!-that is, News Corp. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch an incredibly awkward emperor's-new clothes situation because the new look, the new joie de vivre, the The Mao Who Owos the News 1 3 2 9 new living arrangements-he's temporarily living in the Mercer Hotel in SoHo, like a rock starcant be mentioned. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch new China strategy: part nerships. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The Ecology JUNE 25-26, 2007 It is the New York Times Murdoch is really after, more than even the Wall Street Journal. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Now there is the issue of the New York Times to resolve. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Hence, the New York Times is no longer prin cipally a metropolitan paper. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch With a daily circulation of 260,000 in the five boroughs, it is no longer even credibly a New York paper. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch (Its two tabloid competitors, the Daily News and the New York Posy sell a million more copies between them than the Times in New York City.) The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The older children were adamant about not giving up control over the trust but were willing to allow their new siblings equal economic participation in the family fortune (the subtext here was that giving them voting participation would effectively give Wendi, the guardian of two votes, more weight than the others). The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 378 I MICHAEL WOLFF This figure of a mercurial and threatening Murdoch is drawn most clearly from the reporting in the Wall Street Journal itself and, to a slightly lesser extent, in the New York Times. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch So Murdoch, onto not just a good story but also a way to annoy Ginsberg, called New York Post editor Col Allan and, busting the expense budget, had 'Page Six' send a reporter to Paris. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Over the thirteen years of this relationship, the tabloid right-winger and new Labour exponent have gone from opportunistic alliance to fast friendship-against which each, with evident humility, leavens his views. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch and Westwood One, Inc., filed October 13, 2004, in the Supreme Court of the State of New York; settled two weeks later. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The New York Post reported that O'Reilly had paid 'multimillions of dollars.' The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Kate Kelly and Carmela Ciurara, 'The Murdochs of Downtown,' New York Observer, December 26, 1999. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch See also Katherine Q. Seelye, 'Dow Jones Turns to Financial Side in Naming Its New Chief Executive,' New York Times, January 4, 2006. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 102 James Murdoch Annette Sharp, 'The Diary,' Sun-Herald (Sydney), June 18, 2000; Raymond Snoddy 'The Saturday Profile: James Murdoch,' Independent, 412 I ENDNOTES August 6,2005; Valerie Block, 'The Dutiful Son: Spare Murdoch Heir, a High Tech Kid, Waits Patiently to Rotate into New Post,' Crain's New York Business, August 10, 1998; 'A Grass-Roots Murdoch,' New Yorker, September 16, 1996, 44; 'Like Father, Like Son,' Economist, November 8, 2003, 64; Madden Normandy, 'James Murdoch,' Advertising Age, January 26, 2004; 'Young Murdoch's Asian Adventure,' AdAge Global, May 2001, 30; Raymond Snoddy, 'Murdoch Son Attacks BBC's Global Claims,' Times (London), August 28, 2000. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch He turned up in brand new shooting suit, with knickerbockers-you could see it was absolutely brand new-and what looked to me, as an old hand, like an absolutely brand-new twelve-bore, side-by-side gun. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch She said, `Well, would you sell New West?'which was Clay's idea of doing something in California that was losing money. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch 4 2 4 I ENDNOTES 306 Malone and Murdoch meet in 1994: Ken Auletta, 'The Pirate,' New Yorker, November 13, 1995. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch Murdoch), 301 Felker, Clay, 148-60,233 Fight Club (film), 363 Financial Times, 29, 51, 192, 244, 255 First Casualty, The (Knightley), 65 Fisher, Andrew, 64,65 Fleischer, An, 139,166 Forbes, 111; Murdoch on richest men list, 192 Ford, Charlotte, 148 Fortune, 28, 47 Fox Business Network (proposed), 138, 167, 380 Fox Network, 42,48, 113, 167, 210, 218, 297, 307; as fourth network, 307-8; Married with Children, 133, 300; New World stations bought, 307-8; NFL rights, 305, 307; 0. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch New York Sun, 154 New York Times, 20, 22, 47, 49, 137, 152, 231, 232, 258, 263, 339-44; admiration for Murdoch at, 9; anti-Murdoch sentiment at, 6, 8, 340-42; Bloomberg Times deal rumor, 390; Murdoch desire for revenge or acquisition, 7, 339-44, 348, 399, 400-401; as national paper, 343; reporting on Wall Street Journal sale, 378; scandals at, 343; share price, 342; Sulzberger as suimr of Wall Street Journal, 28, 29, 77; Sulzberger family and, 28; voting trust of Sulzbergers at, 92; as Wall Street Journal rival, 86 New York World-Telegram, 154 Nightingale-Bamford School, 150 Nixon, Richard, 266-67, 345 Nocera,Joe, 28 Northcliffe, Lord, 66-67, 71, 132 Obama, Barack, 347, 397-98 Observer (London), 67, 176 Odey, Crispin, 96 Oil and Honor(Petzinger), 172 Olbermann, Keith, 247 444 I INDEX O'Neal, Stan, 399 O'Reilly, Bill, 7, 211, 247, 346, 398 Ottaway Jim, 78 Outfoxed (documentary), 11 Oxford University, 69-70, 71, 121, 263, 265 Packer, Clyde, 74 Packer, Frank, 74 Packer, Jamie, +4,101, 351, 36546, 376 Packer, Kerry, 19-20, 44, 73, 74, 75, 351, 365 Packer family, 73, 75, 159, 179, 264, 352 Page, Larry, 336 Paley, Bill, 22, 71, 155 Paramount, 308 Parsons, Dick, 36 Patricof, Alan, 155, 157, 158 Patten, Chris, 163, 252 Paul, Weiss, Rifkind, Wharton and Garrison, 146 Pearl, Danny, 385 Pearlstine, Norm, 47, 171, 172, 315, 316 Pearson PLC, 28, 192, 255, 286, 310 Perelman,Ronald, 179,182,507 Peretsman, Nancy, 28, 166 Pergamon Press, 124 Perot, Ross, 279 Petzinger, Thomas, 172 Philadelphia Enquirer, 256 Philip, Prince of England, 134 Phillips, Warren, 171, 258, 316 Phillips Academy, 100 Pumice, Anna (granddaughter), 99 Pianim, Cornelia (granddaughter), 98 Pianim, Elkin Kwesi, 98-99 Pianim, Nicholas, 99 Pickens, T. Boone, 179, 182, 183 Pincher, Chapman, 122 Plame, Valerie, 47, 343 Playford, Sir Thomas, 265 Podhoretz,John, 276 Podhoretz, Norman, 276 Pop Idol (TV show), 113 PopularPhotogmphy, 183 Posner, Victor, 179 Presley, Elvis, 207-8 Primedia, 11 Princeton University, 53, 54, 100 Private Eye, 131, 134 Profumo,John, 126-29 Providence Equity Partners, 366 Pugh, Clifton, 177 Pulitzer, Joseph, 66,203 Purnick, Joyce, 269 Puzq Michael, 384, 385 Queensland Newspapers Ltd., The Man Who Owns the News: Inside the Secret World of Rupert Murdoch I believe that the fiscal hole is so large that only a huge new revenue source like the value added tax can fill it. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy True to his word, Clinton established a new White House organi- 26 zation, carved out of OPD, called the National Economic Council. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy More important, he persuaded New York banker Robert Rubin to come to Washington and head it up. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy jour nalist Nick Lemann explains: In the early days of his Presidential campaign, Bush was introduced by his new circle of policy advisers to a Washington institution called a 'murder board,' in which a politician's aides fire hostile questions at him as a method of preparing for the rigors of public appearances. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy 45 46 IMPOSTOR 'It is a paradoxical truth that tax rates are too high today and rev enues are too low, and the soundest way to raise the revenues in the long run is to cut the rates now,' Kennedy said in his Economic Club of New York speech on December 14, 1962.^ Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy James Gattuso and former Reagan attorney general Ed Meese, both of the Heritage Foun dation, criticized Bush for imposing 100 economically significant new regulations each year of his presidency, compared to 90 per year during 120 IMPOSTOR the Clinton Administration and just 70 per year under Reagan.' Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy evaporat ing,' the New York Times reported.9 Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy 'The late finish was powered by the results of a new Cable News Network poll which showed that the presidential race had narrowed.... Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy During the Clinton years, the percentage of the national workforce employed by the federal government contracted to levels not seen since the New Deal, a remarkable achievement given the new tasks which the government had undertaken in the intervening seventy years (including Social Security, Medicare, and other programs that touched the lives of every American family). Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy Instead of trying to rein in entitlements, he has created a costly new one; instead of trying to reduce the reach of the federal government in education, Bush has extended it; instead of trying to 138 IMPOSTOR control discretionary spending, Bush has agreed to virtually every expansion that Congress has sought. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy
BUSH AS NIXON THE FIRST PERSON to draw a parallel between Bush and Nixon was someone who knew Nixon well: then-New York Times columnist 142 IMPOSTOR William Safire, who had been a speechwriter for Nixon. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy 'In the history of presidential politics, only Richard Nixon rivals George W Bush's level of cynicism about the economy,' the New Republic's Noam Scheiber added.' Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy As Herb Stein has remarked, 'Probably more new regulation was imposed on the economy during the Nixon administration than in any other presidency since the New Deal.'ae Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy After the passage of Proposition 13 in California on June 6, 1978, most Republicans jumped aboard the tax-cut bandwagon being led by Con gressmanJack Kemp, Republican of New York, Sen. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy V86 IMPOSTOR Therefore, it is my belief that a federal VAT is the best way to raise net new revenue to pay for tax reform and deficit reduction at the same time. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy And then he screwed up the Medicare legislation by making it nothing but a vast new giveaway with little if anything in terms of real reform. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy The relief effort and rebuilding o£ New Orleans clearly required considerable direct spending. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy As the repre- 222 NOTES sentative from the Treasury Department, my orders were to oppose any new tax subsidies for shipbuilding or expansions of existing ones. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy New York Times (March 28). Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy INDEX ABC News polls, 13, 75 Abramoff, Jack, 17 Affirmative action, 153, 154 Agricultural subsidies, 19, 86, 91-92 AIG, 115 Airline industry, post-September 11 aid package for, 118 Alcoa, 78 Alesina, Alberto, 172 Alternative Minimum Tax (AMT), 184,185 Altman, Daniel, 74 American Airlines, 78 American Association of Retired Persons (AARP), 75, 80, 81 American Conservative, 173 American Conservative Union, 12-13 American Institute for International Steel, 87 Amtrak, 155 Antle, Jim, 173 Aquaslide'N' Dive Corporation, 104 Archer, Bill, 55 Armey, Dick, 80 Arrogance o£ Bush Administration, 16,40-41 Arthur Andersen, 111 Atlantic Monthly, 144 Australia trade with, 92, 96, 97-98 VAT in, 187 Baby boomers, retirement of, 167, 169, 173, 185 Bagehot, Walter, 112 Bahrain, trade with, 97 Baicker, Katherine, 36 Bainbridge, Stephen, 113, 205, 208 Baker, James, 28-29 Bandow, Doug, 13 Barnes, Fred, 11, 92, 132, 134, 200 Barringer, William, 87 Barro, Robert, 57, 165, 203 Bartlett, Roscoe, 65 Bartley, Bob, 49, 53 Bastable, C. E, 87 Baughman, Laura, 88, 90 Becker, Gary S., 165 Bell, Steve, 125 BellSouth,78 Bentsen, Lloyd, 126 Berle, Adolf, 110 Bernanke, Ben, 36 Bernstein, David, 143 298 Berthoud,John, II Bhagwati, Jagdish, 97 Big business, see Corporate interests Birnbaum, Jeffrey, 38, 173 Blair, Tony, 33, 116 Blinder, Alan, 53 Blodget, Henry, 112 Blumenthal, Sid, 144 Bodman, Samuel, 37 Bolivia, trade with, 97 Boot, Max, 37, 130 Boozman, John, 66 Borjas, George, 206 Buskin, Michael, 23 Botswana, trade with, 97 Bradley, Bill, 178 Brady, Kevin, 66 Brady, Nicholas, 6 Brinkley, Alan, 120 Broiler, David, 9-10 Brookhiser, Rick, 43 Brookings Institution, 133, 176 Brown, Michael, 38,40 Bubbles, economic, 112-13 Buchanan, Patrick, 49, 84 Buckley, William E, 13 Budget Act of 1974, 159 Budgets balanced, 158, 159, 164, 173 Bush Administration, 14, 15, 61, 102, 131-39, 170, 173, 192, 199, 200 Clinton Administration, 13, 18, 51, 122-30,140 deficit reduction, see Deficit reduction Reagan,133,138-39,163 Burgess, Michael, 65 Burns, Arthur, 34, 145, 146, 147 Bush, George H. W, 135 INDEX economic policy, disinterest in, 23 no-new-taxes pledge, abandonment of, 7, 48, 49, 124-25,171 presidential election of 1992, 12, 23,48,122-23,124-25,156 Reagan-style conservativism and, 5-7 trade policy, 84 Bush, George W, and Bush Administration. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy 302 Frenze, Christopher, 164 Friedman, Milton, 105, 146, 155, 160-61,165-66,167 Friedman, Stephen, 30, 31 Frum, David, 26-27 Fund, John, 14,205 Furchtgott-Roth, Diana, 187 Galbraith, John Kenneth, 46, 154, 181 Galloway, Lowell, 164 Gasoline tax, 162 Gattuso, James, 109, 119 General Accounting Office (GAO), 101 General Agreement on Tariffs and Trade (GATT), 83 General Electric, 94, 115, 162 General Motors, 78 George, Henry, 190 George, Robert, 13 Gephardt, Richard, 178, 199 Gigot, Paul, 9, 50 Gingrich, Newt, 74,172 Gleckman, Howard, 74,77 Global Crossing, 109 Global warming, 38,106 Goldberg, Jonah, 195 Gold standard, 146 Goldstein, Amy, 69, 76 Goode, Virgil, 65 Gore, Al, 8, 129 Government, role of Bush's 'big government conservatism,' 2, 8, 10-11, 14, 15, 17, 92, 132, 208 Clinton Administration and, 129-30 conservative view of, 1, 2 liberal view of, 1, 2 INDEX Government Accountability Office, U.S., 167, 173 Government Printing Office, 22 Graham, John D., 106, 107 Graham, Lindsey, 76 Gramm, Phil, 113 Great Depression, 82 Greenberg, Hank, 115 Greenspan, Alan, 34, 36, 161, 165, 172 Gridlock, government spending and, 127,134,140,196-99,200 Guatemala, trade with, 96 Gutierrez, Carlos, 39-40 Haig-Simons definition of income, 176 Hale, David, 37 Hall, Robert, 177 Hall-Rabushka flat tax proposal, 177 Hamilton, Alexander, 86-87 Hart-Teeter poll, 197 Hassett, Kevin, 62, 138, 173 Hastert, Dennis, 95-96 Hastings, Doc, 64 Health Savings Accounts, 201 Highway bill of 2005, 138, 139, 199,205 Highway Revenue Act of 1982, 162 Hoekstra, Pete, 66 Honduras, trade with, 96 Hook, Janet, 134 Hoover, Herbert, 82 Hostile corporate takeovers, 111 House, Christopher, 55 Howard, John, 97 Howard, John L., Jr., 40 'How Uncurbed Entitlements Will Force Large Tax Increases,' 170 INDEX Hubbard, R. Glenn, 25, 31, 34-35, 61 Hufbauer, Gary, 90, 98 Human Events, 5 Humphrey, Hubert, 193 IBM, 56 Ignatius, David, 115-16 Immigration policy, 9, 14, 15, 16, 107,205-7 Income tax, comprehensive, see Comprehensive income tax Indian gambling interests, 17 Inflation, 45, 47, 126, 162 indexing of Social Security benefits to, 149-50 duringjohnsonAdniinistration, 148 during Nixon Administration, 146, 147 Inside Politics, 75 Interest rates, 62, 102, 126 Internal Revenue Service, 33, 181 'tax gap' estimate, 184 International Monetary Fund, 33, 94, 184 International Trade Commission, U.S. (ITC), 86, 88, 90, 101 Investment Tax Credit, 148, 149 Iraq, invasion and occupation of, 1, 2, 10, 17, 18, 142, 156, 205 conservative criticism of, 13, 207-8 interagency coordination and, 37 Lindsey's cost estimate for, 30 neoconservatives and, 10 supplemental appropriation requests for, 135 WMDs, failure to find, 11, 207-8 Ireland, VAT in, 187 Isakson, Johnny, 66 Israel, trade with, 96 303 Issues andAnswers, 73 Istook, Ernest, 65, 66 Jacoby,Jeff 138 Jacoby, Neil, 158-59 Japan, VAT in, 187 Jenkins, Holman, 165, 199 Jepsen, Roger, 119 John Birch Society, 154-55 John Deere, 78 Johnson, Lyndon B., and Johnson Administration, 46, 84, 135, 148 Joint Committee on Taxation, 45, 63 Jordan, trade with, 96 Junk bonds, 110-11 Kadlec, Daniel, 198 Kasten, Robert Walter, Jr., 178 Katrina, Hurricane, 38, 40, 80, 139, 204-5 Keating, Dave, 199 Kemp, Jack, 160, 178 Kemp-Roth tax bill, 160, 162 Kennedy, Edward, 8, 74-75 Kennedy, John E, 144, 148, 160 tax cut of 1963, 45-46, 158-59 trade policy, 83-84 Kennedy, Mark, 66 Kerry, John, 13, 14, 36, 62, 77, 136, 137, 196 Keynes, John Maynard, and Keynesian economics, 45, 46, 48, 51-52,58,148,155-56,177 King, Steve, 66 Kline, John, 65 Kristol, Irving, 161 Krugman, Paul, 102 Kutmer, Bob, 81 Kyoto Treaty, 106, 107 304 INDEX INDEX Laffer Curve, 160, 161, 203 McTague, Jim, 130 Modigliani, Franco, 53 Lame, Hugh, 124 Means, Gardiner, 110 Moffit, Robert, 70 Lay, Ken, 117 Medicare, 72, 189 Moore, Steve, 59, 133 Lazear, Edward P, 165 trustees, annual reports of, 70, Morgenthau, Henry, 27 Leaks, 4-5 71-72,168 Morocco, trade with, 97 Leavitt, Michael, 79 unfunded liability for, 70-72, Morris, Dick, 197, 202-3 Lesotho, trade with, 97 168-69,202 'Murder board,' 42 Lewinsky, Monica, 147, 168 'Medicare: A Ticking Time Bomb Muris, Tim, 106 Liberal view of role of government, for Tax Increases,' 170 Murphy, Kevin M., 165 1,2 Medicare Prescription Drug, Murphy, Tim, 66 Lichtenberg, Frank, 73-74 Improvement, and Murray, Alan, 37, 106, 120, 143, 170 Lichtman, Allan, 17 Modernization Act of 2003, 13, Myrick, Sue, 66 Light, Paul, 39 16,36,64-81,143,174,192, Limbaugh, Rush, 142-43 200, 201, 202 NAFTA, 84, 85, 96 Lindsey, Larry, 24-25, 29-31, 35, corporations, benefits for, 77-78 Namibia, trade with, 97 49, 50, 51 costs of, 17, 65, 67-72, 80 National Conference of State Lockheed Corporation, bailout of, 154 future tax increases and, see Tax Legislatures, 120 Long, Michael, 11 increases, future National debt, 50, 102 Los Angeles Times, 70 House vote on, 64-66 interest on, 127-28 Lowry, Richard, 76 political backlash, 75-77, 80 National Economic Council (NEC), Loyalty, Bush Administration political rationale for, 73-74, 156 23-25,29-31,35 demands for, 3, 18, 30, 31, 39-40 unfunded liability for, 4, 11, 71, under Rubin, 24, 31, 126 79,168 National Educational Association, 138 Macomber, Shawn, 58 Meese, Ed, 119 National Review, 11, 29 'Mad cow' disease, 109 Melloan, George, 135, 138 National Security Council, 24 Maggs, John, 137-38 Mexico, trade with, 96 National Taxjournal, 187 Mallaby, Sebastian, 52 Meyerson, Harold, 77 National Taxpayers Union, 138 Managers, corporate, 109-11 Milbank, Dana, 143 Neoconservatives, 10 Manchester Union Leader, 7, 50 Milken, Michael, 111 Neugebauer, Randy, 65 Mandates on the states, unfunded Mill, John Stuart, 87, 208 Newmark, Kathryn, 138 federal, 120 Miller, Jeff, 65 Newsweek, 160-61 Mankiw, N. Gregory, 35-36, 95, 96 Milliken, Roger, 93 NewYork Post, 134 Manzullo, Donald, 66, 89 Minimum tax, 149 New York Times, 5, 40, 60, 74, 78, 93, Mars, manned mission to, 136 Miniter, Brendan, 203 96, 98, 109, 124, 130, 132, 170 Marshall, Jim, 65 Miniter, Richard, 7 Nicaragua, trade with, 96 Marshall Plan, 83 Missile defense, 38 Nicholson,Jim,15 Martin, William McChesney, 145-46 Mitchell, Dan, 170 Niskanen, William, 166, 198 McCain, John, 80, 199 Modern Corporation and Private Nixon, Richard M., and Nixon McKinnon, Mark, 3 Property, The (Berle and Means), Administration, 84, 121, 135, McNealy, Scott, 114 110 141-56,193 305 balanced federal budget and, 159 Bush compared to, 1, 19, 141-44, 153,156,194 federal spending under, 149-51 government regulation under, 151-54,155,156 'industrial policy,' 154-55 presidential campaigns, 144-45, 147, 149, 155, 156, 194 Social Security spending and, 149-50,151,155,156 tax policy, 148-49, 159, 189 wage and price controls, 146, 147, 152,155 Watergate scandal, 147, 193 Nock, Albert Jay, 11 Nofziger, Lyn, 12, 14 Noonan, Peggy, 15 North American Free Trade Agreement (NAFTA), 84, 85, 96 Novak, Robert, 3, 11, 16, 30, 40, 50,76-77,117,201 Nunes, Devin, 66 Occupational Health and Safety Administration (OSHA), 151-52, t53,155,156 Office of Faith-Based and Community Initiatives, 25 Office of Management and Budget (OMB), 24, 106, 107, 108 powers of, 21-22 Office of Policy Development (OPD), 22, 23, 24 Omnibus Budget Reconciliation Act of1987,163 O'Neill, Paul, 27-29, 30, 53, 59, 61, 102 Organisation for Economic Co operation and Development, 83 3o6 Otter, Butch, 65, 66 Powell, Cohn,132,193 Outsourcing, 90, 94-96, 115 Presidential elections Overseas Private Investment 1960,144-45,156 Corporation, 117 1968, 145, 194 Oxley, Michael, 113, 117 1972, 142, 147, 155, 193 1976, 12, 149, 159, 196 Panagariya, Arvind, 97 1980, 12, 195, 209 Panetta, Leon, 126, 181 1992,12,23,48,122-23,124-25, Parker, Mike, 3 156 Payroll taxes, 128, 163, 183 1996,49 Penn Central Railroad, bailout of, 2000, 8, 42, 51 154 2004,12-14,36,62,77,119,136, Perot, Ross, 23, 49, 84, 122 137, 144, 194, 196, 206 Perotti, Roberto, 172 2008, 19, 140, 193, 194, 195, 196, Personal income tax, 60-61 208-9 VAT to replace, 184-85 Press, Bush and the, 41-42, 143 Peru, trade with, 97 Price controls Peterson, Pete, 167 on drugs, 78-79 'Philadelphia Plan,' 154 under Nixon, 146, 147, 152, 155 Pierce, Kenneth, 87 Price of Loyalty, The (Suskind), 28 Pinkerton, Jim, 142 Productivity, regulation and, 152-53 Pitts, Joe, 65 Progress and Poverty (George), 190 Podhoretz, John, 3, 11, 134, 200 Progressive tax rates, 177, 180 Policy development process, 20-43 Proposition 13 in California, 160-61 Bush Administration and, 18, 20, Protectionism, 84, 156 24-43,200-201 agricultural subsidies, 19, 86, 91-92 historically, 20-23 antidumping statutes, 98-100, 101 National Economic Council and, bilateral trade agreements and, 23-25,29-31 96,97 Politicization of policy analysis, 30, Chinese textiles, restrictions on 38-40 imports of, 93-94 economic policy, 37 dangers of, 82-83, 100, 101 science policy, 38 history of U.S., 82-83, 86-87 Pollock, Ron, 75-76 for infant industries, 86-87 Pollution abatement and control, Nixon and, 153-54, 156 expenditures for, 152-53 steel tariffs, 9, 11, 19, 35, 8591, 101 Ponnuru, Ramesh,42-43 Pork barrel spending, 11, 98, Rabushka, Alvin, 177 131-32,138-39,167,199,203, Roach, Jonathan, 144, 198 205, 208, 213 Rawls, John, 181 INDEX INDEX Rayburn, Sam, 82-83 Reagan, Ronald, and Reagan Administration, 76, 120 discretionary spending under, 133, 135,138-39,161 on foreign aid, 132-33 leaks, tolerance of, 4-5 Nixon's policies and, 19 outside advisors, 41 presidential election of 1980, 12, 195,209 supply-side economics, 48, 157 tax policy, 23, 48, 60-61, 161-64, 173, 186, 214 trade policy, 84 Regulation, government, 103-9, 112-17,119 -20,129,151-54, 156 Reich, Robert, 96, 118, 128 Reinhardt, Uwe, 52 Reston, James, 155 Retail sales tax, 177, 181 Revenue sharing, 149, 155 Reynolds, Alan, 55, 62 Ribstein, Larry, 112-13 Rice, Condoleezza, 193 Richards, Ann, 117 Riedl, Brian, 169 Right Man, The (Frum), 26-27 Roach, Stephen, 123 Rockefeller, Nelson, 193 Romano, Roberta, 113-14 Roosevelt, Franklin D., 27, 83, 193,205 Rosen, Harvey, 36 Roth, Bill, 160 Rove, Karl, 15, 142, 143 Rubin, Robert National Economic Council headed by, 24, 31, 126 307 as Secretary of the Treasury, 24, 28-29,31 'Safe harbor leasing,' 162 Safire, William, 141-42 Sager, Ryan, 137 Sales tax, retail, 177, 181 Samuelson, Robert, 123, 142 Santorum, Rick, 165 Sarbanes-OxleyAct (SOX), 113-17, 156, 199 Sawicky, Max, 169-70 Scarborough, Joe, 136-37 Schatz, Tom, 167 Scheiber, Noam, 144 Schiavo, Terri, 1 Schlesinger, Arthur, 27 Schmitz, John, 155 Schultze, Charles, 136 Schwab, Charles, 59-60 Science policy, 38 Scott, David, 65 Scowcroft, Brent, 41 Scully, Tom, 69, 70 Securities and Exchange Commission, 110, 114-15 September 11, 2001 conservatives' criticism of Bush and, 9, 14 new regulations after, 107 subsidies to big business after, 118-20 Shapiro, Matthew, 55 Shareholders, corporate, 110-11 Shapiro, Dan, 171 Shlaes, Amity, 170 Simon, Bill, 105-6 Simons, Henry, 178 Singapore, trade with, 96 Slaughter, Matthew, 36 308 Slovakia, VAT in, 187 Small Business Administration, 108 Smith, Adam, 103-4, 110 Smith, Brad, 66 Smith, Chris, 15 Smith, Howard K., 155 Smith, Nick, 66 Smith, Vernon L., 59 Smoot-Hawley Tariff, 82, 83 Snow, John, 31-34 Socialism, 154 Social Security Clinton Administration efforts to save, 167-68 indexing of benefits to inflation, 149-50 1983 changes to,162-63,189 Nixon and, 149-50, 151, 155, 156 payroll taxes, 163, 183 unfunded liability for, 71, 79, 169,202 Social Security reform, 15, 16, 18, 79-80,200,202-3 policy development for, 32, 200-201 raising the wage cap, 172 Social Security trust fund, 32 Soros, George, 14 Souder, Mark, 66 South Africa, trade with, 97 Starve-the-beast theory of taxation, 157,159-61,164-67 State Department, U.S., 24 Statement of Administration Policy (SAP), 22 Steel tariffs, 9, 11, 19, 35, 85-91, 101 Stein, Herb, 146, 152, 161 Steindel, Charles, 53 Stem cell research, 38 INDEX Stevens, Ted, 167 Stigler, George, 105 Stiglitz, Joseph, 34, 128, 129-30 Stockfisch, J. A., 187 Stockman, David, 72-73 Strine, Leo, 113 Stuttaford, Andrew, 7-8 Successor to George W Bush, 193-94 Sullivan, Andrew, 137 Summers, Lawrence, 34 SuperfundAmendments of 1986, 163 Supersonic jet aircraft, 154, 155 Supply-side economics, 48, 52, 59, 157 Surrey, Stanley, 47 Suskind, Ron, 26, 28, 40-41 Swaziland, trade with, 97 Tampa Tribune, 13 Tancredo, Tom, 206 Tanenhaus, Sam, 10 Tariffs, see Protectionism Tax brackets, 180 'bracket creep,' 47-48, 128, 173 changes in the, 49, 50, 53, 54-55, 56,126,178-79,188 progressive, 177, 178 tax reform and, 178-79, 188 Tax credits, 57-58 child credit, 57, 175, 179 Investment Tax Credit, 148, 149 Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), 162 Tax increases, future, 157,168-91 economists predicting, 169-70 inevitability of, 168-70, 189 Republican Party antipathy for, 170-71 INDEX tax reform to achieve, 176-91 trigger for, 18, 171-72, 188, 192 Tax policy Bush, Jr. See Tax policy, Bush Administration. Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy RADICAL SON A JOURNEY THROUGH OUR TIMES
DAVID HOROWITZ









THE FREE PRESS New York London Toronto Sydney Singapore THE FREE PRESS A Division of Simon & Schuster Inc. 1230 Avenue of the Americas New York, NY 10020 This book is for My children Jon, Sarah, Ben, and Anne Who lived this story with me; Copyright C 1997 by David Horowitz All rights reserved, including the right of reproduction in whole or in pan in any form. Radical Son: A Journet Through Our Times [B] 96-27127 CIE ISBN 0-684-82793-X CONTENTS


Acknowledgments ix Prologue 1
PART 1: BLACK HOLES (1904-1939) Fivel 7 Russia 16 Blanche 24
PART 2: COMING OF AGE (1940-1956) Sunnyside 35 Idols 45 Loyalties 61 Martyrs 75 Elissa 87 At
viii • Contents PART 3: NEW WORLDS (1957-1967) Berkeley 99 London 120 PART 4: REVOLUTIONS (1968-1973) Power to the People 157 Bring the War Home 179 Generations 203 PART 5: PANTHERS (1973-1974) Huey 221 Betty 240 ACKNOWLEDGMENTS PART 6: PRIVATE INVESTIGATIONS (1975-1980) Questions 253 Divorce 281 Requiem 308 PART 7: COMING HOME (1980-1992) Second Thoughts 329 Destructive Generation 366 After the Fall 392 Epilogue: Father and Son 433 index 447 A N AUTOBIOGRAPHY IS NOT THE COMPLETE RECORD OF A LIFE, BUT AN effort to make sense of one. Radical Son: A Journet Through Our Times She had fled from her shred 10 - Black Holes Fivel • 11 prison in the Old World only to arrive in another prison in the New. Radical Son: A Journet Through Our Times But though he had begun to distance himself from the ghetto his parents would never leave, my father felt as much an inter loper in his new environment as he had at Townsend Hams before. Radical Son: A Journet Through Our Times The new house was now priced at $18,000, more than four and-a-half times what my parents would have had to pay for it nine years ear lier, when they first moved into the neighborhood. Radical Son: A Journet Through Our Times Many who lost their jobs were even more successful in the new ca reers they found, and for good reason: They had all been first-generation Americans who had gone to work during the Depression and had gravitated to school teaching as a secure profession in uncertain times. Radical Son: A Journet Through Our Times As the new persecutions got under way, Jews began to vanish into the vast concentration-camp system that Stalin had built along with the other construction feats of the socialist state. Radical Son: A Journet Through Our Times It called on them to unite across international boundaries in order to win a new world. Radical Son: A Journet Through Our Times PART 3
NEW WORLDS (1957-1967)
The Times They Are A-Changin' -Bob Dylan BERKELEY


W ITH THE MONEY WE WERE GIVEN AS WEDDING PRESENTS, I BOUGHT a used Volkswagen 'bug,' and we jammed Elissa's plants and our belongings into it and headed west. Radical Son: A Journet Through Our Times like others enrolled in literary studies, I had devel- 100 - New Worlds oped an ambition to be a writer. Radical Son: A Journet Through Our Times It was the have-your-cake-and-eat it-too attitude that provided much of the New Left's appeal. Radical Son: A Journet Through Our Times It offered us the prospect of inclusion into the American main- 104 • New Worlds ley - 105 stream while at the same time rejecting it. Radical Son: A Journet Through Our Times 106 - New worlds Hayden's inner angst was given political shape by the radicals he encoun tered at the beginning of the Sixties. Radical Son: A Journet Through Our Times It was this alliance that made the New Left. Radical Son: A Journet Through Our Times We were even insulted by the imputation, an outrage that was shared by nonradical students who had 108 - New Worlds joined us as civil-liberties liberals and did not regard Communism as a signif icant threat. Radical Son: A Journet Through Our Times New worlds tion, not a collection of spiritual idealists. Radical Son: A Journet Through Our Times On January 18, 1961, a deranged ex-student named John Harrison 114 - New Worlds Berkeley . Radical Son: A Journet Through Our Times I dedicated Student to justice Hugo Black, the First Amendment absolutist on the Supreme Court, and sent it to him along with a gushing letter telling 116 - New Worlds him that his views had inspired in me a 'love' for America's heritage of free dom: 'While I have not relinquished my socialist beliefs, nor my critical stance, they have been infused and transformed by a new and equally revolu tionary stream.... Radical Son: A Journet Through Our Times New Worlds approached the matter obliquely 'A sign of the uncertain footing of this gen eration in the world,' I wrote, 'is the reluctance to bring new being into it.' Radical Son: A Journet Through Our Times At the south end of the campus, the Telegraph Avenue Cinema showed the latest features of Fellini, Godard, Bergman, and Truffaut, making it a mecca for Berkeley's New Left. Radical Son: A Journet Through Our Times From this vantage, I did notice the huge warehouses along 122 - New Worlds the route that had the letters MOWINCKEL emblazoned across them. Radical Son: A Journet Through Our Times I had secured a position as a lecturer with the Uni- 128 - New Worlds versity of Maryland's overseas extension, which had a degree program for U.S. servicemen. Radical Son: A Journet Through Our Times After Schoenman's entry into his life, Russell thrilled his young anti- 130 • New worlds London - 131 nuclear disciples, while shocking their elders, by saying: 'We used to call Hitler wicked for killing off the Jews, but Kennedy and Macmillan are much more wicked than Hitler ... Radical Son: A Journet Through Our Times These acts of personal bravery partially dis- 132 • New Worlds London • 133 armed my doubts. Radical Son: A Journet Through Our Times Or, perhaps, it was that I had reached that 134 • New Worlds stage in my youthful career where I would just as soon bethought of as being on my own and not having parents. Radical Son: A Journet Through Our Times A pale, intense, almost haunted man, Laing would drop in at our basement flat unannounced, and in a lyrical Scottish burr describe a dream he had the night before, in which he had visions of hidden worlds and 'tesse- 136 - New Worlds lated marble,' while neither Elissa nor I had the slightest idea of what he was talking about. Radical Son: A Journet Through Our Times This is the result of the whole theory of his upbringing, but I can't 138 - New Worlds London • 139 help feeling it means that much of the time David could be writing, he has to spend playing with Johnnie.' Radical Son: A Journet Through Our Times Shortly after the Tribune article appeared, I received a phone call from a man with a thick Russian accent who said he was with the Novosti Press 140 • New Worlds Agency and wanted to have lunch. Radical Son: A Journet Through Our Times Members of the New Left Review crowd knew him, as did activists I recognized from the Labour Party left. Radical Son: A Journet Through Our Times 142 - New Worlds I was not the only radical courted by Lev. Radical Son: A Journet Through Our Times It was the culmination of my efforts to rescue socialism from its tainted past, and to reconstruct a Marxist theory that would guide the revolutionary future, and it ended with this challenge: 'The struggle 144 • New Worlds which the Bolsheviks began more than half a century ago is still in its early stages-indeed, in a sense, is just beginning.... Radical Son: A Journet Through Our Times The Highgate flat was roomy enough to have an office for me, where I 146 - New Worlds could lay out my books and typewriter on a real desk. Radical Son: A Journet Through Our Times But, despite the new space, I was as tense as ever. Radical Son: A Journet Through Our Times 148 • New Worlds it would be immediately associated in people's minds with the Nuremburg Tribunal, and America's actions would thus be connected with Nazi war crimes. Radical Son: A Journet Through Our Times I attended the London session, where Deutscher made a spontaneous and eloquent tribute to Russell for his courage, and for the inspiration he pro- 150 • New Worlds London • 151 vided. Radical Son: A Journet Through Our Times In January, Elissa and I packed our be- 154 • New Worlds longings into tea chests and, with our three children, boarded an ocean liner for the United States. Radical Son: A Journet Through Our Times When we arrived in New York, I called Scheer to tell him we were headed for California. Radical Son: A Journet Through Our Times Once my family and I were settled, I invited him to our new house. Radical Son: A Journet Through Our Times In the absence of 160 • Revolutions Power to the People - 161 similar stories about KGB operations among the organizations of the Left, or of links between the antiwar movement and the Communist forces in Viet nam, the Ramparts articles seemed to confirm the New Left view of the world. Radical Son: A Journet Through Our Times Even Hay- 178 • Revolutions den, one of the few radical leaders actually able to engage serious ideas, had surrendered to the 'Vietnam Metaphor'-the prism through which the New Left had come to interpret all events. Radical Son: A Journet Through Our Times I soon learned the players, and acquired a basic knowl edge of the business-including the information that Hinckle and Scheer had gone to New York in search of a financial bailout. Radical Son: A Journet Through Our Times When their mission failed, Scheer came back, complaining that Hinckle had used the trip to raise funds for an entirely new magazine he intended to call Barricades. Radical Son: A Journet Through Our Times Scheer wanted no part of Hinckle's new enterprise or liability, and chose instead to remain with the sinking ship. Radical Son: A Journet Through Our Times It created a sense of new and radical possibilities. Radical Son: A Journet Through Our Times She had been at Martin Luther King's 1963 'March on Washington' and other demonstrations, including the 1967 anti war protests at the Whitehall induction center in New York, where she was in terviewed by a reporter for the New York Post: 'I think the war is immoral,' 208 • Revolutions she told him. Radical Son: A Journet Through Our Times Kenner put the Panthers in touch with the left-wing lawyer community in New York, and to manage their assets (mainly houses that Schneider had bought for them) created a company called Stronghold. Radical Son: A Journet Through Our Times Among those we recruited was Audrea Jones, the head of the George Jackson Free Clinic, who had been hostile when I first met her, but who turned out to be Charles's girlfriend and was happy now to be on board an important new project. Radical Son: A Journet Through Our Times Unfortunately, my plan didn't work, be cause the old staff and the new team quickly became embroiled in intractable personal conflicts. Radical Son: A Journet Through Our Times As a result, the new trio left the magazine, to found a com petitive journal which they called Mother Jones. Radical Son: A Journet Through Our Times He had 258 • Private Investigations Questions • 259 been quoted in the New York Times saying that he was prepared to kill cops if he thought that necessary. Radical Son: A Journet Through Our Times The New Left had come and gone, and nothing had changed. Radical Son: A Journet Through Our Times But so many books had already been written on the Kennedy family that we didn't think there was a new story to tell. Radical Son: A Journet Through Our Times The courtship had lasted only a matter of weeks under circumstances-new fame and new wealth-that were bound to produce giddiness and unsober judg ment. Radical Son: A Journet Through Our Times This was brought up at a 'criticism-self-criticism' session for new Party members, and was linked to a personality trait her interrogators found objectionable: 'You're just acting that way because the Panthers killed your mother,' they scolded her. Radical Son: A Journet Through Our Times She remembered that she had lived on Maple Street in New Haven, and that her grandfather 372 • CmingHome had made ritual wine in the cellar, and that Mr. Penny, who lived across the street, used to greet her on her way to school. Radical Son: A Journet Through Our Times The Soviet reforms under Gorbachev, he said, proved that our vision as New Left ists was right. Radical Son: A Journet Through Our Times Kenner was now speculating in commodities and international currencies, and had made a 402 • Coming Home handsome profit on an earthquake in Peru that killed several thousand people as it drove the price of coffee to new highs. Radical Son: A Journet Through Our Times At the conclusion of his own autobiographical essay he had written: After my years as a New Leftist, I could never join another movement or sub scribe to another orthodoxy. Radical Son: A Journet Through Our Times But it proved to be a standard forth of educational abuse in the new aca demic environment. Radical Son: A Journet Through Our Times See Vietnam War, demonstrations against Aragon, Louis, 82 Arha magazine, 388 Aronson, James, 116 Asher,Aaron, 212,213 asthma, 17, 23, 28, 146 atomic bombs, 75, 139 Austin,Jan,181,182,185,190,195, 198 Avakian, Bob, 194, 224 Avery, Paul, 297 Ayers, Billy, 177, 333-34, 335 448 - lndee Babeuf, Gracchus, 385 'Baddest: The Life and Times of Huey P Newton' (Collier and Horowitz), 402 Baez, Joan, 132, 302-3 Bagdikian, Ben, 321 Baker, Houston, 408 Baker, Marilyn, 259 Baker, Roshi, 265 Bakunin, M. A., 385 Baldwin, James ('Jimmy'), Ballantine Books, 114 Bank of America (Santa Barbara), 189 Baron, Paul, 136 Banish, Jonas, 100, 101, 119 Baron De Hirsh Settlement Fund, 12 Barricades, 180 baseball, 57-58 Bates, Tom, 296 Bauer, Hank, 57 Baxandall, Roz, 171 Bay, Brenda, 226, 232, 240, 265-66 Bay, Christian, 120 Bay Area Reporter, 345 Bay of Pigs invasion, 104, 108, 125 Beat Generation, 103 Begley, Ed, Jr, 355 Beichman, Arnold, 65-66 Bellow, Adam, 422, 423 Bennett, William, 443 Bentley, Elizabeth, 400 Berdyaev, Nicholas, 55, 337 Bergen, Candice, 233, 234 Bergman, Ingmar, 120,121 Berkeley Barb, 178 Berkeley 'Free Speech Movement,' 113, 115,406 Berkeley Liberation School, 178 Berkeley Square, The (bar), 249 Berlin, Isaiah, 142 Berlin Wall, 391 Berman, Paul: criticism of DH by, 359-60,384-87; DH's response to, 361, 421; MacArthur award to, 409; in Nicaragua, 374-75 Bemal, Martin, 133 Bernstein, Carl, 68 129,148 Bernstein, Leonard, 77, 229, 234 Bertrand Russell Centre for Social Re search, 133 Bettrand Russell Peace Foundation, 127, 130-33,146-51 'Better Ron, Than Red' (Horowitz), 361 Bevins, Bill, 58 Big Bob (Black Panther Party member), 264-65,296,322,421 Big Chill: How the Reagan Administration, Corporate America, and Religious Con servatives Are Subverting Free Speech and the Public's Right to Know (Pell), 321 Bingham, Steven, 309 Binh, Madame, 160 Black, Hugo, 115-16 Blackest, P M. S., 124, 139 Black Guerilla Family, 314 'Black liberation Army,' 236, 334, 385 'Black Murder Inc' (Horowitz), 421-22 Black Muslims, 110, 231 Black Panther (newspaper), 193, 196, 225,227,228 Black Panther Party. Radical Son: A Journet Through Our Times Erikson, Erik, 230 Espionage Act of1918,198-201 Essays on Liberation (Marcuse), 189 ethnicity, 275 Eyes on the Prize (television documen tary), 402 Fall of Berlin, The (film), 64 Fatten, Frantz, 385 Farley, Chris, 131 Farmer, John Harrison, 113-14 Fast, Howard, 36, 53, 54 Inde< - 453 Fate of Midas and Other Essays, The (Horowitz), 135, 188 Fay, 'Red,' 330 Federalist Papers, 397 Feller, Itzhak, 73-74, 270 Feinberg Law, 70 Feinberg Law (New York State), 65, 70 Feinstein, Dianne, 340 Fellini, Federico, 112 Fellwock, Perry, 201 feminism, 171, 174 Fidel (film), 193 Fifth International (proposed), 152 Finley, Tommy, 46-47 First Frontier, The (Promised Land) (Horowitz), 285, 286, 308 Freud, Sigmund, 45, 275, 279 Fifth, Bob, 178; attempted recruitment of Frey, John: murder of, 162, 164, 258-59 265, 309, 387, 401 Friedman, Milton, 410 Friedman, Paul, 109 Fromm, Erich, 101, 127 Front, The (film), 70 Fruhaug, Trygve, 122 Frye, Hardy, 274, 277 Fumento, Michael, 343 DH to Leninist SDS faction by, 165; as editor at Ramparts, 198, 200; Marxism of; 177; and CIA, 201; racial views of 158, 161, 164, 198 Fitzgerald, E Scott, 410 Five Easy Pieces (dm), 223, 231 Flacks, Richard, 106 Fleming, D. F, 124 Flynn, Elizabeth Gurley, 43, 53 Fonda, Jane: attack on Joan Baez by, 303; at Bert Schneider's parties, 233; di vorce from Tom Hayden, 409; mar riage to Tom Hayden, 196; political advisor to, 410; support for North Vietnam, 201,376 'Food Conspiracy,' 295 Forbes, Flores, 264, 296, 421 Ford, Cristina, 367-68 Ford, Henry, II, 367, 368 Ford, whitey, 81 Ford Foundation, 211, 408 Fords: An American Epic (Collier and Horowitz), 353, 355, 366-68 Forest Hills, New York, 36 44th Street Cardinals, 57, 58-59, 61 Foster, Marcus, 235, 236 Foster, William Z., 56 Foucault, Michel, 406 Fourth International, 76 Fox night dub (Oakland), 241 France, Royal, 69 Francis, Don, 338-39 Franco, Francisco, 361, 393 Frank, Andre Gunder, 133 Franqui, Carlos, 401 Fmppier, Jon, 194-95, 362 Freed, Donald, 297 freedom, 397 Freedom Riders, 275 Freedom Road (Fast), 54 free speech, 115-16, 428 Free World Colossus, The (Horowitz), 124-27,138,139-41,142,144-45, 216,305,350 Gain, Charles, 243 Gaines, Kenny, 80 Galbmith,John Kenneth, 367 Garrow, David, 402 Garry, Charles, 243, 268, 401 gay movement, 338 Gellner, Emest, 135 General Theory of Employment, Interest and Money (Keynes), 135 Genet, Jean, 221-22 Gentleman's Agreement (film), 59 George Jackson Defense Committee, 311,312 George Jackson Free CBnic, 225 Gerassi, John, 125 Gere, Richard, 309 Geronfmo, 196 Gerson, Billy, 64 'Getting Away with Murder' (Collier and Horowitz), 325 454 • Index Index • 455 Giachino, Mary, 317 Gingrich, Newt, 443 Ginsberg, Allen, 103,189 Gitlin, Todd: DH's response to, 421; at 'Marxism and Post-Marxism' seminar, 274; misinterpretation of the New Left by, 104, 221, 321, 381; on New Left's support for Black Panthers, 221, 297-98; at 'PC Frame-Up' confer ence, 408; silences of, 104, 192, 278, 321, 378; as writer for Bertrand Rus sell Centre for Social Research, 133; as writer for Ramparts, 189; as writer for Tihkun, 378 Gitlow, Benjamin, 400 Glazer, Nathan, 377 Glubb, Faris, 131 Glubb, SirJohn, 131 Gold, Ted, 192 Goldblum, Jeff, 428 Goldwater, Barry, 443 Goodloe, Gwen, 244 Goodman, Andrew, 275 Goodwin, Doris Kearns, 329, 354 Goodwin, Richard, 329 Gorbachev, Mikhail, 398, 410 Garrrick, Vivian, 84 Graham, Shirley, 36, 64 Gramsci, Antonio, 216, 305, 406 Grathewold, Larry, 160 Gray, Crystal, 296 Gray, Francine du Plessix, 189 Grazer, Brian, 355 Gregory, Dick, 255 Griffin, Susan, 102, 189 Gropper, William, 36 Guatemala, CIA-engineered coup in, 125 Guevara, Che, 109-10, 152-53, 165 Gulag Archipelago (Solzhenitsyn), 193 Gurevitch, Moishe. Radical Son: A Journet Through Our Times 465 acy Trial, 166, 167; flight to avoid re taliation from Black Panthers, 221, 245, 269-70, 296; Hilliard-Hayden ar gument over, 321; and Huey Newton, 234, 242, 245, 259; as mayoral candi date, 267; and New Haven Seven trial, 188, 377; as 'preacher' at Son of Man Temple, 240; as speaker at Malcolm X Day celebration, 241 Seattle Liberation Front, 175, 409 Second International, 76 'Second Thoughts' (radio show), 427 Second Thoughts Conference (Washing ton, DC, 1987),376-79, 404 See, Carolyn, 418 Seeger, Pete, 53, 64 self-determination, 115 Seward Park High School (New York), 25, 65 sexually transmitted diseases, 338-39, 340,341,343,345 sexual revolution, 173-75 Shabazz, Betty, 163 Shadow of the Panther, The (Pearson), 442 Shakespeare: An Existential View (Horowitz), 135-36 Shakespeare, William, 91, 100, 101, 119,135 Sharansky, Natan, 277 Sheen, Bishop Fulton J., 41 Sheinbaurn, Stanley, 159, 180, 237 Sherman,Ian, 364 Sherman,Robin, 364,440 Shilts, Randy, 339-40, 341, 342, 345 Sholokhov, Mikhail, 36 Shrum, Bob, 354 'Siete de La Raza, Los,' 300 Silverman, Mervyn, 342-43 Singleton, John, 421 Six Day War (1967), 227,275-76 Sixties: Years of Hope, Days of Rage (Gitlin), 104 Smart magazine, 402 Smith, Gerald L. K, 67 Smith, Henriether, 54 Smith, Kathleen, 243, 259, 265, 296, 297 Smith, Page, 322 Smith, Steve, 330 Smith Act, indictments under, 64, 70-71,107,271,274 social democrats (social democratic movement), 61 Social Foundations of Knowledge, The (pro posed) (Horowitz), 211, 215, 216, 285 Socialist Register, The, 134-35, 398 Socony Mobil, 211 Soledad Brother Uackson), 221, 309, 310, 313 Solidarity, 391 Solzhenitsyn, Alexander, 193, 210, 272 'Solzhenitsyn and the Radical Cause' (Horowitz), 193 Somoza, A., 350 Son of Man Temple (Oakland), 240,241 Sontag, Susan, 181-82, 194, 382-83 Soon To Be A Major Motion Picture (Hoff man), 410 Sorel, Edward, 189, 385 Soul On Ice (Cleaver), 168 Souk of Black Folk (Du Bois), 64 Southern Dixiecmts, 56 Soviet Union: collapse of, 391; expan sionism of, 124; political freedom in, 398; progressive Left support for, 41 Sowell, Thomas, 406 Sayer, Moses, 37 Soyer, Raphael, 37 Spanish Civil War, 41, 49, 361 Sparer, Ellen, 79-80, 146, 259-63, 275, 381 Spellman, Cardinal Francis Joseph, 41 Sperber, Richie, 80 Spinoza, Baruch, 227 Sraffa, Piero, 135 Stalin, Joseph: collectivization of Russia under, 22-23; control of Eastern Eu rope by, 41, 56, 63, 124; criminal ac tivity of, 83, 89, 91, 361; cult of the individual surrounding, 83-84, 113, 466 • Index Stalin, Joseph (cont.) Radical Son: A Journet Through Our Times (Durden Smith), 310, 386, 387 Wiley, Felicia, 411, 412 Wiley, John, 411 Wiley, Loretta, 411 Wilkerson, Betty, 441 William Cullen Bryant High School (New York), 81 Williams, Ted, 57 Williams, William Appleman, 133 Willis, Ellen, 189 Wills, Garry, 230,376 Wilson, Lionel, 268, 294 468 • Indee Wo-Chi-Ca (summer camp), 64-65 Wolfe, Tom, 230 Wolfman, Danny, 47,59 Wolfman, Selma, 37 women's movement, 174 Wonder, Stevie, 323 Wood, Marian, 284 Wood, Pam, 131 Works of j. Radical Son: A Journet Through Our Times GLENN BECK'S COMMON SENSE THE CASE AGAINST AN OUT-OF-CONTROL GOVERNMENT, Inspired by THOMAS PAINE GLENN BECK WITH JOSEPH KERRY MERCURY RADIO ARTS/THRESHOLD EDITIONS NEW YORK Mercury Radio Arts/Threshold Editions A Division of Simon & Schuster, Inc. 1230 Avenue of the Americas New York, NY 10020 The sale of this book without its cover is unauthorized. Glenn Beck's Common Sense: The Case Against an Out-of-Control Government, Inspired by Thomas Paine Designed by Ruth Lee-Mui Manufactured in the United States of America 11 13 15 17 19 20 18 16 14 12 ISBN 978-1-4391-6857-8 ISBN 978-1-4391-6950-6(ebook) Pro Deo, Pro Familia, Pro Patria A NOTE FROM THE AUTHOR Two hundred and thirty-five years ago, a British citizen with only a basic education set off to make a new life for himself in the Brit ish colonies. Glenn Beck's Common Sense: The Case Against an Out-of-Control Government, Inspired by Thomas Paine But the Progressives (both Republican and Demo were paid a contractual bonus and wouldn't voluntarily return that money; GM was required to fire its CEO as a prerequisite to receiving any additional federal bailout money even though the CEO didn't engage in airy criminal or corporate malfeasance; Banking executives were threatened to accept government bailout funds or risk increased scrutiny and audits; Government officials are seeking authority to seize any company that could pose-in their sole opinion-a 'systemic' economic risk-, The sacrosanct 'secret ballot' is under assault by union leaders who feel it's more important to get new members than protect free elections; The government has suggested it will force states to accept federal stimulus money even if they don't want it; The state of Connecticut has considered legislation that would retroactively raise the state income tax on high wage earners; The rich are being vilified and targeted because they are rich. Glenn Beck's Common Sense: The Case Against an Out-of-Control Government, Inspired by Thomas Paine First; Democrats, who had controlled the House for forty years, were swept out of power, and second, almost one-third of the House Republicans who ran for office were new tandidates. Glenn Beck's Common Sense: The Case Against an Out-of-Control Government, Inspired by Thomas Paine 49 The Fair Labor Standards Act of 1938 Title VII of the Civil Rights Act of 1964 The Age Discrimination in Employment Act of 1967 Occupational Safety and Health Act of 197o The Rehabilitation Act of 1973 The Employee Polygraph Protection Act of 1988 The Americans with Disabilities Act of 19go The Family and Medical Leave Act of 1993 The Federal Service Labor-Management Relations Statute Veterans' employment and reemployment rights at Chapter 43 of Title 38 of the U.S. Code The Worker Adjustment and Retraining Notification Act 50 Until we are ready to wipe the slate dean and bring in new leaders who are beholden to no one but us and to nothing but the Constitution, we must demand a political 'mutual-assured destruction' policy: every law imposed on the people must apply with equal force to those who passed it. Glenn Beck's Common Sense: The Case Against an Out-of-Control Government, Inspired by Thomas Paine So, the government isn't anti-gun, but, by their constant in- 77 78 troduction of new regulations and arduous requirements, they seem to be anti-YOU owning a gun. Glenn Beck's Common Sense: The Case Against an Out-of-Control Government, Inspired by Thomas Paine Additional Reading The 5000 Year Leap: A Miracle That Changed the World, by W. Cleon Skousen (National Center for Constitutional Studies) American Progressivism, edited by Ronald J. Pestritto and William J.Atto (Lexington) The Real Benjamin Franklin, by Andrew M. Allison, M. Richard Maxfield, and W Cleon Skousen (National Center for Constitu tional Studies) The Forgotten Man: A New History of the Great Depression, by Amity Shlaes (HarperCollins) The Real George Washington, by Andrew M. Allison, Jay A. Parry, and W Cleon Skousen (National Center for Constitutional Studies) GLENN BECK'S COMMON SENSE Lenin, Stalin, and Hitler: The Age of Social Catastrophe, by Robert Gellately (Vintage) Liberal Fascism: The Secret History of the American Left, from Mus solini to the Politics of Meaning, by Jonah Goldberg (Doubleday) New Deal or Raw Deal? How FDR's Economic Legacy Has Damaged America, by Burton Folsom, Jr. (Threshold Editions) The Real Thomas Jefferson, by Andrew M. Allison, K. DeLynn Cook, M. Richard Maxfield, and W. Cleon Skousen (National Center for Constitutional Studies) Woodrow Wilson and the Roots of Modern Liberalism, by Ronald J. Pestritto (Rowman & Littlefield) lions of people, older and wiser than himself, I forbid this or that act of yours to be law. Glenn Beck's Common Sense: The Case Against an Out-of-Control Government, Inspired by Thomas Paine Lanham • Boulder • New York • Toronto • Oxford ROWMAN & LITTLEFIELD PUBLISHERS, INC. Woodrow Wilson and the Roots of Modern Liberalism Contents




Acknowledgments Is Introduction: Wilson, the Founding, and Historical Thinking 1 I Historicism and Wilson's Critique of the Social Compact 33 2 The Modern Democratic State and the New Political Science 67 3 Beyond the Separation of Powers: The New Constitutionalism and the Growth of the American National State 99 4 Congress as Parliament? Woodrow Wilson and the Roots of Modern Liberalism One scholar even sees in 2 Introduction Wilson, the Founding, and Historical Thinking Wilson's 1912 victory the very end of the progressive movement,' a move ment whose ideals would have to wait until the New Deal to see the light of day again, and even then in an altered form. Woodrow Wilson and the Roots of Modern Liberalism Link contrasts Wilson to the more 22 Introduction Wilson, the Founding, and Historical Thinking 23 aggressive elements of the progressive movement, characterizing the early years of the Wilson presidency as an attempt to defend the New Freedom against these more liberal elements9 5 However, the more Link wrote on Wil son the more he saw him as a progressive, and the first-time publication of many of Wilson's political writings in Link's sixty-nine-volume collection of Wilson's papers seems to indicate this shift. Woodrow Wilson and the Roots of Modern Liberalism Technically, the first public office held by Wilson was not the New Jersey gover norship but membership on the New Jersey Commission on Uniform State Laws, to which he was appointed in 1906. Woodrow Wilson and the Roots of Modern Liberalism According to Wilson, the problem with Bryce's The Ameri can Commonwealth is that a reader might 'get the impression that our civil war, which was a final contest between nationalism and sectionalism, simply confirmed the Union in its old strength, whereas it in reality, of course, con firmed it in a new character and strength which it had not at first possessed, but which the steady advance of the national development, and of the national idea thereby begotten, had in effect at length bestowed upon it. Woodrow Wilson and the Roots of Modern Liberalism 'Who can doubt,' Wilson asked, 'that man has grown more and more human with each step of that slow process which has brought him knowledge, self-restraint, the arts of inter course, and the revelations of real joy?' Furthermore, with each new age, humans must make sure to grow and adapt accordingly. Woodrow Wilson and the Roots of Modern Liberalism As Wilson noted, In a new age we must acquire a new capacity, must be men upon a new scale and with added qualities. Woodrow Wilson and the Roots of Modern Liberalism We shall need a new Renaissance, ushered in by a new 'humanistic' movement, in which we shall add to our present minute, intro spective study of ourselves, our jails, our slums, our nerve-centers, our shifts to live, almost as morbid as mediaeval religion, a rediscovery of the round world and of man's place in it, now that its face has changed. Woodrow Wilson and the Roots of Modern Liberalism 'zs Problems in American government, consequently, result from a reticence to adjust our political principles to the new spirit that history is bringing forth. Woodrow Wilson and the Roots of Modern Liberalism Chapter Two The Modern Democratic State and the New Political Science



The previous chapter detailed Wilson's criticism of the social compact and the abstract theory of rights upon which it is based' In making his critique, Wilson seems to sound certain themes of classical democratic theory. Woodrow Wilson and the Roots of Modern Liberalism In early essays such as 'The Art of Governing,' Wilson commented that history points to the development of a single kind of 70 Chapter Two The Modem Democratic State and the New Political Science 71 government.' Woodrow Wilson and the Roots of Modern Liberalism And in later works such as The New Freedom, Wilson laid out his vision of modem democracy as the end-state of historical progress. Woodrow Wilson and the Roots of Modern Liberalism Wilson's essay 'De mocracy' explicates the distinction between rule by majority opinion and rule 72 Chapter Two The Modern Democratic State and the New Political Science 73 by the implicit, objective will of society. Woodrow Wilson and the Roots of Modern Liberalism The best government, after all, is simply the one that reflects the 74 Chapter Two The Modern Democratic State and the New Political Science 75 historically conditioned will of a particular society. Woodrow Wilson and the Roots of Modern Liberalism Wil son made this point by characterizing government as the mere instrument of 76 Chapter Two The Modern Democratic State and the New Political Science 77 society's common will. Woodrow Wilson and the Roots of Modern Liberalism 78 Chapter Two The Modern Democratic State and the New Political Science 79 Even political liberties and privileges, Wilson asserted, are not immune from the exercise of state power if the will of the people in a particular age en dorses state action. Woodrow Wilson and the Roots of Modern Liberalism The first is that Wilson saw his progressivism as the only viable 80 Chapter Two The Modern Democratic State and the New Political Science 81 alternative to socialism. Woodrow Wilson and the Roots of Modern Liberalism It was a way of transforming the government away from its founding principles and toward a new, energized role that would enable it to meet the demands of the current epoch. Woodrow Wilson and the Roots of Modern Liberalism Both socialism and Wilson's progressivism found the traditional American political order outdated and unable to handle the new social and economic problems of contemporary times. Woodrow Wilson and the Roots of Modern Liberalism Wilson saw his progressivism as a nat ural development or outgrowth of the new historical spirit. Woodrow Wilson and the Roots of Modern Liberalism The inference is strengthened in the essay by the character the 'democrat,' who says to the 'socialist': 82 Chapter Two The Modem Democratic State and the New Political Science 83 You know it is my principle, no less than yours, that every man shall have an equal chance with every other man: if 1 saw my way to it as a practical politi cian, 1 should be willing to go farther and superintend every man's use of his chance. Woodrow Wilson and the Roots of Modern Liberalism To society 84 Chapter Two The Modern Democratic State and the New Political Science 85 alone can the power of dominating by combination belong: and society cannot suffer any of its members to enjoy such a power for their own private gain inde pendently of its own strict regulation and oversight et Private development, then, must be under the control of the state.' Woodrow Wilson and the Roots of Modern Liberalism In the preface to The State, Wilson declares that his approach will be a compara tive one, and he recognizes that he will be entering upon new territory: 'In preparing [the book] I labored under the disadvantage of having had no prede cessors. Woodrow Wilson and the Roots of Modern Liberalism It is this assertion, for instance, 86 Chapter Two The Modern Democratic State and the New Political Science 87 that underlies Wilson's numerous writings on administration, where he argues that we can borrow administrative models from nations like Prussia in spite of the obvious constitutional differences. Woodrow Wilson and the Roots of Modern Liberalism Easton's account of liberal realism makes clear that Bagehot rejected this 88 Chapter Two The Modern Dentocratic State and the New Political Science 89 kind of thinking. Woodrow Wilson and the Roots of Modern Liberalism 90 Chapter Two The Modern Democratic State and the New Political Science 91 The development of specialized disciplines within the social sciences took place during a time when German influence on American institutions of higher learning was at its height. Woodrow Wilson and the Roots of Modern Liberalism Crick notes that 92 Chapter 7Wo The Modem Democratic State and the New Political Science 93 Wilson's more value-laden, even religiously oriented, empiricism is bypassed by the more strictly scientific and amoral pragmatism of William James, John Dewey, and others-' As we will see in chapter 7, Wilson's science of admin istration also comes under heavy criticism by subsequent theorists, who con sider it insufficiently value free. Woodrow Wilson and the Roots of Modern Liberalism Beginning in the late 1860s, the traditional view was challenged by reformers who wanted 94 Chapter Two The Modem Democratic State and the New Political Science 95 a more practical or vocational orientation. Woodrow Wilson and the Roots of Modern Liberalism 96 Chapter Two The Modern Democratic State and the New Political Science 97 41. Woodrow Wilson and the Roots of Modern Liberalism In his New Freedom campaign, Wilson asked rhetorically what the attitude of progressives ought to be toward the symbols of the founding political order-especially toward the Constitution 1114 Chapter Three Beyond the Separation of Powers 105 and the individualistic understanding of it that dominated the founding era. Woodrow Wilson and the Roots of Modern Liberalism As he proclaimed in The New Freedom, 'No living thing can have its or gans offset against each other, as checks, and live.' Woodrow Wilson and the Roots of Modern Liberalism Wilson championed the plight of new members, whose efforts to seek open debate and consideration of their legislative proposals constantly ran afoul of the complicated rules, hi erarchy, and standing-committee system: If [the new member] supposes, as he naturally will, that after his bill has been sent up to be read by the clerk he may say a few words in its behalf, and in that belief sets upon his long-considered remarks, he will be knocked down by the rules.... Woodrow Wilson and the Roots of Modern Liberalism Even a new member of the House would be confused by the arcane and secretive procedures. Woodrow Wilson and the Roots of Modern Liberalism In his New Freedom campaign for the presidency, Wilson used his criticism of the committee process to push for the elimination of the tariff. Woodrow Wilson and the Roots of Modern Liberalism A new election would show them the temper of the country, and they would not be so blind as to ignore or antagonize it. Woodrow Wilson and the Roots of Modern Liberalism THE POSTCONSTITUTIONAL PRESIDENCY Just as his earlier proposal for reforming Congress had urged that the institu tion focus less on its constitutionally defined legislative powers and duties, 168 Chapter Five The Presidency, the Parties, and the Judiciary 169 Wilson's new institutional vision for the presidency required the president to look beyond his role as it is defined in the Constitution. Woodrow Wilson and the Roots of Modern Liberalism 170 Chapter Five The Presidency, the Parties, and the Judiciary 171 If Cleveland's presidency catalyzed Wilson's changed thinking on execu tive power, Wilson's own experience as a chief executive-in New Jersey and in Washington-offers clear evidence that he took this thinking to heart and implemented its key tenets in a variety of concrete ways. Woodrow Wilson and the Roots of Modern Liberalism Wilson described his position as New Jersey's chief executive as one where he embodied the will of the people, and then acted as the embod iment of the public will in guiding and superintending the disparate parts of state government. Woodrow Wilson and the Roots of Modern Liberalism Wilson promised to bring the pressure of public opinion to bear on the legis lature if it failed to do its job 26 This is a promise he fulfilled, as Wilson ex plained in a 1911 interview on the success of his program in the state legisla ture: '`A notion has gone abroad that I whipped the Legislature of New Jersey into performing certain acts,' said the Governor, `but that view of the matter is not correct. Woodrow Wilson and the Roots of Modern Liberalism In this assessment, it is important to keep in mind (as explained in chapter 1) Wilson's apparent mis reading of Lincoln-Lincoln did not promote 'a new principle for a new age' 210 Chapter Six Who Governs? Wilson's Leadership Doctrine and the Question of Democracy 211 but promoted instead a return in his own age to the principles of the found ing. Woodrow Wilson and the Roots of Modern Liberalism His appeals in the New Freedom campaign often bordered on soft demagoguery- 212 Chapter Six Who Governs? Wilson's Leadership Doctrine and the Question of Democracy 213 particularly in their flattery of the people. Woodrow Wilson and the Roots of Modern Liberalism Leonard D. White, The Republican Era: 1869-1901 (New York: Macmillan, 1958), 319, 396. Woodrow Wilson and the Roots of Modern Liberalism See also Turner, 'Wilson as Administrator,' 251; Louis Brownlow, 'Woodrow Wilson and Public Administration,' Public Administration Review 16 (1956): 81; Wallace S. Sayre, 'Premises of Public Administration: Past and Emerging,' Public Administration Review 18:2 (1958): 102; Raymond Seidelmann and Edward J. Harpham, Disenchanted Realists: Political Science and the American Crisis, 1884-1984 (Albany: State University of New York Press, 1985), 55. Woodrow Wilson and the Roots of Modern Liberalism 256 And Wilson made clear in The New Freedom that 'freedom today is some thing more than being let alone. Woodrow Wilson and the Roots of Modern Liberalism Eden (New York: Greenwood Press, 1989), 155-66. Woodrow Wilson and the Roots of Modern Liberalism Gordon S. Jones and John A. Marini (New York: Pharos Books, 1988),20-40; and Kesler, 'The Public Phi losophy of the New Freedom and the New Deal,' in The New Deal and Its Legacy, ed. Woodrow Wilson and the Roots of Modern Liberalism See also Hegelianism of Wilson Hegelianism of Wilson, 14-19, 34, 36-37,41-44,55,68-70,75,82,91, 100,102,213-16,225,228-30,233, 240,263 Heidegger, Martin, 27016 Henry, Nicholas, 251076 Henry, Patrick, 57 The Historical School, 8, 10-14, 19, 20, 40,50,87 historical-comparative method, 84-89 historicism, 8, 10, 13-19, 34-45, 50, 101,108,213-16,227-31,240,246 Hour, George Frisbie, 15908 Hobbes, Thomas, 16, 47, 96052 Hofstadter, Richard, 20, 30088, 95037 Holst, Hermann von, 88, 97073, 129023 Hooker, Richard, 45, 47 House of Representatives, 140-43, 145-46,158,167,236 Hume, David, 4 Huxley, Thomas H., 13 internationalism, 18, 262-66 Jackson, Andrew, 69,107-9,114, 129024,174-76,187,191,209 Jaffa, Harry V., 2605, 186-87, 196080 James, William, 92 Jefferson, Thomas, 1-3, 20, 30087, 43, 56-57,104-5,119,123,169, 174-75,186-88,209,218038, 276 237-38,253,255-57,260-61, 267n3,268n8,269nl7,270n42 Jellinek, Georg, 239, 251 n67 judiciary, 116-17, 188-91 Kant, Immanuel, 94, 263, 270n48, 271n48 Kesler, Charles R., 21, 26n8, 31 n89, 65nl02,97n69,l23,l32n87, 13205,160n39,173,1920, 19300,218n27,240,242,249n48, 250n60,251n66,268n4 Kirwan,Kent A.,189,197n88,246nl, 24909,250n65,25105,252n83 LaFollette, Robert, 258 leadership, 16, 71, 139-41, 149-53, 156-58,168-76,179-82,200-216, 231,236-37 League of Nations, 166-67, 266 Lee, Richard Henry, 57 liberty, Wilson's understanding of, 17, 53-58,116,121,255-56 Lieber, Francis, 9, 28n28, 89, 90 Lincoln, Abraham, 3,260,6509, 104, 109,123,12902,21809,218n42; Wilson's understanding of, 57-58, 209-10 Link, Arthur S.,20-22,27n15,30n85, 3105,33,37,61n2,620,62M 7, 63n43,94n8,96n59,128n6,130n36, 158nl,159nl6,165,171,185, 192n2,193n31,l93nn34-35, 19608,2170,219n47,220n65, 224,245,2470,24701, 248nnl6-17,25002,25107,253, 257,258,2680,2680, 269nn21-22,26900,27004 Locke,John, 16,26n10,27n16,45, 47-48,243,25100 Lodge, Henry Cabot, 134 Longaker, Richard P., 193n37 Macauley, Lord Thomas Babington, 29n44 Index Machiavelli, Niccolo, 27n 16 MacWilliams, Wilson Carey, 196n82 Madison, James, 27n35, 104, 186 Maine, Sir Henry, 9, 13, 20 Mansfield, Harvey C., Jr., 4, 26nn9-10 Marini, John, 28n33 Marion, David E., 250n51 Marquardsen, Heinrich, 9, 28n28, 34, 62n4,239 Marshall, John, 105-6, 191 Martin, Daniel W., 245, 248n 17, 249n41,252n81 Martine, James E., 170 Marx, Karl, 87, 188, 196n84 Mcllwain, Charles H., 28n23 Miewald,Robert D.,229,234,248n28, 249n41,251n71 Mill, John Stuart, 12, 29n44 Minor, John B., 63n49 modem presidency debate, 172-76 Montesquieu, Baron de, Charles-Louis de Secondat, 119, 126, 227 Morley, John, 47, 76 Mosher, Frederick C., 251n75 Mowry, George E., 259, 267n1, 269n31 Mulder, John M., 20, 27n]9, 30n84, 41, 63n36,63n43,97n65,130n36, 1590,192n5,250n65 national bank, 107-8, 176 natural rights, 3-6, 11, 17, 52, 57, 109, 256 Neumann, Karl Frederich, 28n28 New Freedom, 1-2,119,122-23,203, 211-12,254-59,262 New Jersey, Wilson's governorship of, 170-72,184-85,257-58 New Nationalism, 1-2, 254-55, 258-59 Newton, Sir Isaac, 119, 168 Nichols, David K., 174 Nietzsche, Frederich, 27n16, 31n89 Nisbet, Robert, 10, 14, 28n31, 29n53, 63n48 Nugent,James Richard, 185,196n77 oratory. Woodrow Wilson and the Roots of Modern Liberalism CHAPTER 1
ONWS OBAMA NOMINEE WITHDRAWAL SYNDROME As America thrilled to the inauguration o f its 44th president and a new First Lady, the West Wing was filling with a kalei doscopic army of policy aces, whiz kids, and veteran advis ers, all focused on the long-haul, no-drama work to which Barack has called them...' Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Perhaps the new pres ident figured that a disastrously bungled appointment process is the way to Make Government Cool Again. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies And as the New Mexico GOP documented in 22 CULTURE OF CORRUPTION
March 2007, Richardson's role in the bankruptcy and securities fraud scandal of fraud-ridden software company, Peregrine Sys tems, had been widely publicized: Richardson served on the board of directors of Peregrine Sys tems from February 2001 to June of 2002, during a period when the company was covering up accounting fraud to the tune of $509 million in overstated profits and $2.6 Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies million in fees from a New Mexico state financial agency after donating more than $100,000 to Richard son's efforts to register Hispanic and American Indian voters and to pay for expenses at the 2004 Democratic National Convention, the news service reported. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies CDR made contributions both shortly before and after securing consultant work with the state of New Mexico. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies The first question went to Bar bara Walters, who asked about that day's New York Times story that Mrs. Obama's appearance on the show was aimed at 'soft ening her reputation.' Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Axelrod's firm recommended 56 CULTURE OF CORRUPTION Bitter Half: First Crony Michelle Obama 57
'New level of compassion,' indeed. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies During his address to a joint Session of Congress after signing the bill, Obama designated Vice President Biden the stimulus spending watchdog to be perched at a new website-www.recovery.gov Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Jose Vil lanueva, twenty-one, a senior at Claremont McKenna Col lege in California, told Time magazine: 'He's new and modern and breaking with the past.' Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies 'I like that he's new,' Stewart enthused. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Internet entrepre neurs cranked out Obama t-shirts emblazoned with 'Hope is the New Black' and 'Change is fresh.' Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies So the vetters found a convenient way to cir cumvent the problem-by creating a handful of new posts through presidential executive orders that require no Senate approval. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Democrat Senator Robert Byrd (yes, even a broken clock is right twice a day) warned the White House in a February 2009 letter about his worries regarding the new czar positions in health care, 142 urban affairs, energy and climate policy, and technology and man agement performance. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies 'I am concerned about the relationship between these new White House positions and their executive branch counterparts,' Byrd wrote. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies to
spend $490 million to dredge New York's Hudson River to rid it of polychlorinated biphenyls (PCBs) that-because they were buried under layers of silt-posed no environmental harm.' Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies That spot went to Harvard grad and former Clinton HUD official Shaun Donovan, who moved up from his role as New York City commissioner of housing and development. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies In 2005, Quadrangle won a $20 million con tract from the New Mexico State Investment Council, headed by New Mexico Governor Bill Richardson, later to be a disgraced Obama Commerce Secretary nominee. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies 158 Naturally, New York wasn't the only state in which Rattner worked his magic. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies A leader who would usher in a 'new kind of politics' that represented the little people and abandoned the old ways of doing business. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies The New York Times provided a glimpse of his schmooze-filled work life: In addition to his salary at Shaw, Mr. Summers enjoyed grow ing wealth through investments in the firm's funds. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Summers landed on his feet at New York City-based D. E. Shaw-one of the world's largest hedge funds. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies ^ Grajeda quit her California posts after catching public 216 flak and found a new job-as special assistant to SEIU secretary treasurer Anna Burger in Washington, D.C.! Her former chapter heralded the move up. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies In her new role, Annelle will expand SEIU's work in the pub lic sector partnering with the Obama Administration to secure more funds for key infrastructure projects and core public serv ices including care for the elderly, health care, education and social services 55 218 A separate corruption case in the Bay Area uncovered another SEW double-dipper, James Bryant, who used a nonprofit run out of his home to line his pockets and his family's with extra union funded income-while also collecting a salary as a government transit worker. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Fired from her Washington, D.C., strategic research/writing position in January 2008 for using a Project Vote credit card for personal expenses worth less than $2,000, she served as the primary source for the rare investigative forays by the New York Times into ACORN's fraudulent empire. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies In sworn testimony for a lawsuit filed by the Pennsylvania Republican Party against ACORN, as detailed by Ballotpedia, MonCrief (an Obama supporter) revealed how: • ACORN's quality-control efforts were 'minimal or nonexistent'; • The quality control policies of ACORN were 'largely window dressing'; ACORN knew that most new voter registration forms it had gathered were fraudulent; When she was employed by the organization, it was given lists of potential donors by several Democratic presidential campaigns, including that of Barack Obama; m In November of 2007, ACORN's Project Vote devel opment director Karyn Gillette told her that Gillette had direct contact with the Obama campaign and had obtained their donor lists. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies 248 CULTURE OF CORRUPTION
And e-mail messages from Strom show not only the New York Times reporter's repeated praise and gratitude for MonCrief's information, but also her concurrence with MonCrief's assessment of the vast, money-funneling ACORN enterprise. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Cox didn't comment on Clinton's lettecs 9 In Hillary's own backyard, upstate New York developer Robert Congel donated $100,000 to the Clinton Foundation in the fall of 2004-just a few weeks after Mrs. Clinton helped pass legislation allowing Congel to use tax-exempt bonds to fund the construction 266 CULTURE OF CORRUPTION
of his company's massive entertainment and shopping complex in Syracuse. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies In May 2009, 274 Hsu was convicted in a New York federal court on four campaign finance corruption counts. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies The Beltway swamp is teeming with Democratic cor ruption scandals (Pennsylvania congressman John Murtha's ear mark factory and tax-subsidized airports and radars to nowhere; New York representative Charlie Rangel's rent-controlled apart ment scams and tax scandals; Illinois representative Jesse Jack son's role in the Blagojevich pay-for-Senate seat debacle; California representative Maxine Waters's business ties to a minority-owned bank that received $12 million in TARP money under smelly circumstances, for starters), which are fodder for a separate encyclopedia set . Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Downe, convicted, on probation and banned for life from the securities business, described himself as 'private investor' on the document and included his New York address. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Maureen Orth, 'Can Obama's New Team Make Government Cool Again?' Vanity Fair, February 2, 2009; available online at: http://www. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Robert Gearty and Greg B. Smith, 'White House urban czar Adolfo Carrion OKd architect Hugo Subotovsky's Bronx plans,' New York Daily News, March 12, 2009; available online at: http://www. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies 'In largest single-day filing ever in California healthcare, care givers flock to new union and show SEIU the door,' National Union of Healthcare workers, February 2, 2009; available online at: http://www. Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies Christine Field, 'Pro-Clinton `Dirty Cash' Man Flees,' New York Post, March 4,2007; available online at: http://www.nypost.com/seven/ Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies 3 Lee, Wen Ho, 21 Lehman Brothers, 168, 171, 285 Leno,Jay, 126-27 Levine, Stuart, 96-97 Levitt, Arthur, Jr., 174 Lew, Jacob, 183 Lewinsky, Monica, 21, 253 Liddy, Edward, 181 Liebowitz, Anna-Lou ('Annie'), 15, 19 Light, Paul, 4, 142 Lily Ledbetter Fair Pay Act, 8 Lippo Group, 109 Locke, Gary, 7,106-11, 112 Loglisci, David, 156-57 Loop Capital Markets, 191 LoPresti, Marc, 95 Loren, Steven, 97 Lynn, William, I1 M Madison, George W, 191-92 Madoff, Bernard ('Bernie'), 31, 270 MarketBeat, 182 Martinez, Matthew, 130 Maryland Bank, National Associa tion (MBNA), 77-82 McCain, Cindy, 44 McCain, John, 9, 12, 81-82, 106, 119, 132, 161-62,165, 168, 169, 170, 193, 247, 252, 267 McCarthy, Andrew, 71, 125 McCauliffe, Terence ('Terry'), 163 McGraw, Darrell, Jr., 123 McKinsey & Company, 29 Medicare Payment Advisory Com mittee, 154 Meet the Press, 21 Merrill Lynch, 105, 172 Middle East Policy Council, 36, 37 Mineta, Norman ('Norm'), 132, 134 Moores, John, 23 Morrissey, Ed, 158, 291 374
Mother Jones, 23, 24, 284 Mozilo, Angelo, 163, 165, 278-79 Multinational Monitor, the, 172 Mundy, Liza, 43 Munoz, Cecelia, 11 N Napolitano, Janet, 16 Nation, The, 174 National Education Association, 10 National Group, The, 86, 87 National journal, 183 National Partnership for Women & Families, 11 National Public Radio, 45, 107 National Review, 37, 44, 177 Nazareth, Annette, 6, 31 NBC News, 24, 27, 281 New Republic, The, 156 New York Daily News, 149, 223 New York Times, the, 1, 3, 4, 5, 17, 19, 25, 41, 49, 50, 63, 74, 99, 107, 147, 153, 156, 166, 170, 173, 179, 185, 207, 234, 235, 244, 247, 248, 263 Newsweek, 3, 72, 259-60 North American Free Trade Agree ment, 130 North Shore Gas, 46 O O'Hanlon, Michael, 105 O'Melveny & Myers, 10, 185 Obama Victory Fund, the, 49 Obama, Barack, 1-13, 15-17, 19, 20, 23, 24-25, 27-29, 32, 35, 49, 52,53,161-63,165,167,210, 277, 278, 289; ACORN and, 227 50; Bill Ayers and, 68-72; corpo rate America and, 63-69, 168-69, 188; criticism of Michelle Obama and, 44; cronyism and, 59-60, 62, 96; czars and, 141-43; Joe Biden and, 73-74, 82, 84, 85; Joe the Plumber and, 169-70; lobbyists and, 47-48, 82, 87, 106, 111, 153; Index open government and, 117, 166 pork barrel spending and, 100; unions and, 19S-202 Obama, Michelle, 5, 11, 39, 41-72, 118, 188, 284 OpenSecrets.org, Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies 56 In Scarsdale, New York, Paul and Christine Taxin were arrested and charged with unlawfully dealing to minors after cops busted a New 48 JOSEPH A. CALIFANO, JR. High Society The Rocke feller drug laws, passed during New York's heroin crime epidemic in the 1970s, curbed judicial discretion by requiring judges to impose a variety of stiff mandatory sentences. High Society 38 By 2006, more than seventeen hundred drug courts were serving at least seventy thousand clients-and most judges wanted to increase their capacity but lacked the funds 39 In Brooklyn, New York, District Attorney Charles J. Hynes was even more frustrated than the judges in Florida as he saw young offenders con victed, incarcerated, released, and promptly rearrested, reprosecuted, and 94 sent back to prison. High Society 1 6 In New York City, children in the sys tem are lost, even killed, because overwhelmed social workers can't keep track of the piles of files scattered all over the desks and floors of 10$ JOSEPH A. CALIFANO, JR. High Society Led by its new publisher, Susan Weinberg, the entire team at Public Affairs Books is better than fast-class. High Society Paul Gahlinger, Illegal drugs: A complete guide to their history, chemistry, use and abuse (New York: Plume, 2004), viii. High Society CASA, Legalization: Panacea or Pandora's box (New York: 1995), 14. High Society CASA, So help me God: Substance abuse, religion and spirituality (New York: Author, 2001), 1; CASA, National survey of American attitudes on substance abuse Ix: Teen dating practices and sexual activity (New York: Author, 2004), 23; 2.40 High Society SOURCE NOTES CASA, National survey of American attitudes on substance abuse 7C: Teens and Par ents (New York: Author, 2005), 26; CASA, National survey of American attitudes on substance abuse ?CI: Teens and parents (New York: Author, 2006), 23. High Society See also Boys; Girls; Parents alcohol abuse among, 59 alcohol-related advertising and influence on, 5640 antipsychotic drugs taken by, 2 cigarette smoking by, 8, 14 of divorced parents, 106 homeless, 115 as innocent victims of parental substance abuse, 67-68 Joe Camel advertising campaign and, 15 in juvenile justice systems, 87 multidrug episodes and social elements among, 35 needed international arrangements to curb alcohol abuse by, 170 parents and prevention of substance abuse in,176-177 Political partnership between alcohol and tobacco industry and, 158-160 polydmg abuse and, 32 prevention focused on, 174-175 smoking and drinking in animated films and, 53 steroids taken by, 5, 26 substance abuse and crushing consequences for, 107-111 synthetic drugs and pharmaceutical drugs taken by, 26-27 tobacco industry, public education programs and, 155-158 tobacco industry advertising tactics and, 60-62 on welfare, substance abuse and, 112 whiskey given to, in colonial America, 16 wide use of marijuana by, 119 246 INDEX Child welfare system, 177 divorce and, 106 substance abuse and, 107-110 Chiles, Lawton, 155 Cholera, 11 Cigarette advertising to black community, 14-15 broadcast networks and, 148 to children, during post-Civil War years, 11 to children and teens, 15 to Hispanic community, 15 promotions, 151 Cigarette Interdiction Group (New York City), 175 Cigarette manufacturers accountability and, 169 advertising by, and influence on teens and children, 60-62 Cigarettes, 5. High Society See also Boys; Females; Girls; Males; Men; Women alcopops and, 58 binge drinking and, 59, 174 prescription drug abuse and, 31, 38 steroid abuse and, 55 substance abuse and addiction and, 135-142 Genetic research, on drug addiction, 79 Genetics, gender, substance abuse and, 140 Gentilello, Larry M., 75 Geography, drug abuse and, 31 George, David Lloyd, 164 Georgetown University alcohol education courses at, 51 Center on Alcohol Marketing and Youth, 58 Gerstner, Lou, 60 GHB, 30 Gibson, Mel, 1 Gingrich, Newt, 156 Ginsberg, Alan, 21 Girls alcopops consumed by, 58 binge drinking by, 7, 59, 174 cigarette smoking by, 14 INDEX cigar smoking by, 61 effects of smoking on, 137-138 effects of drinking on, 139-140 effects of prescription drug abuse on, 140-141 mood-altering pills prescribed for, 3 prescription drug abuse by, 31 steroid abuse by, 55 substance abuse, unisex legacy and,135-142 thinness ideal, substance abuse and, 53 Gitlow, Stanley, 45 Giuliani, Rudolph, 56, 89, 124 Glantz, Stan, 155 Glaucoma, medical marijuana and, 121 Glue, inhaling, 1 Go Ask Alice, 54 Goldstein, Stanley, 93 Gonzales, Katrina, 39 Gooden, Dwight, 4 Graham, Billy, 22 Gray, Ricky Jovan, 85 Great Depression, 18 Great Society, 103, 104 Grey's Anatomy, 54 Gun violence, substance abuse and, 66 Hallucinogens, 1, 26 Hamburg, David, 25n Hanlon, Susan, 48 Hanson, David, 45 Happy Hour, 54 Harlem jazz scene, marijuana use and, 21 Harrison Narcotic Act of 1914, 20 Hasin, Deborah, 123 Hawaii, methamphetamine abuse in, 31 Hazelden Clinic (Minnesota), 69 Health care spending, substance abuse and astronomic rise in, 6, 80-84 251 Health insurance, 169 stigmatization around substance abuse and, 166,167 residential treatment programs and, 69, 72 Healton, Cheryl, 156, 158 Hearst, William Randolph, 17 Heart disease, 4, 65, 66, 76, 168, 177 secondhand smoke exposure and, 68 substance abuse, women and, 141 women and deaths from, 138 Heineman, Ben, 183 Hendrix, Jimi, 22 Herbicides, marijuana and, 25 Heroin, 1, 4, 5, 26, 29, 32, 129, 133 addiction to, in Italy, 131 buprenorphine and, 78 crime epidemic of 1970s (New York), 94 criminal vandalism and, 86 curbing availability of, 172 dopamine levels in brain and, 35 gender and use of, 141 history behind use of, in America, 19-20 legalization argument and, 130 methadone treatment and, 167 treatment admissions for, in Eastern U.S., 31 use of, on college campuses, 51 Vietnam War and use of, 22 Heroin chic, 53 'High All the Time' (50 Cents), 53 High schools easy availability of drugs in, 41 parent power and drugs in, 177 High school students, reductions in smoking among, in New York City, 175 High Times magazine, 24 Highway funds for states, age for purchase of alcohol and, 19 Hilton, Paris, 4 252 INDEX Hispanics alcohol industry advertising to, 58-59 cigarette advertising to, 15 in prisons, 86 HIV epidemic methamphetamine and, 65,67 substance abuse and, 83 Hoffman-LaRoche, 21 Holistic approach to substance abuse prevention, 175 to treatment, 79 Holloway, Natalie, 48 Hollywood films alcohol glamorized in, during 1930s and 1940s, 18 World War II, GI toughness, and smoking in, 12 Holmes, Justice Oliver Wendell, 170 Homelessness substance abuse and addiction and, 103,115-116 veterans, substance abuse and, 83 Homicides, 129 alcohol abuse among teens and, 39 substance abuse and, 100, 107 Hoover, Herbert, 20 Hopelessness, drug and alcohol abuse by students and, 44 Hopkins, Anthony, 87 House, 54 How I Met Your Mother, 54 Hughes, Harold, 4 Hynes, Charles J., 93, 94 Idaho, methamphetamine abuse in, 30-31 Illegal drugs, 1, 2. High Society See also Thinness ideal Weill, Sandy, 72 Welfare, substance abuse and, 7, 111-113 WellPoint (California), 72 Wells, Frank, 182 Wentzel, Ashley, 47 West, Steve, 44 Westin Hotel chain, smoke-free policy and, 154 Wetherington, Gerald, 93 'Where's the Weed At?' (Kottonmouth King), 52 White, Aaron, 59, 60 White Heat (movie), 87 White House Office of National Drug Control Policy, 69, 124 Whites, in prisons, 86 Wiener, Michael, 185 Will and Grace, 54 Williams, Robin, 1 Wilson, Erica, 39 Wine, excise taxes on, 147 Wine coolers, 39, 57 Wine Institute, 145 Wisconsin, Master Settlement Agreement and, 157 Without a Trace, 54 Woman's Christian Temperance Union, 17 Woman's Day magazine, cigarette advertising in, 14 Woman suffrage, temperance movement and, 17 Women alcohol metabolization in men vs., 140 benzodiazepines prescribed for, 21 binge drinking by, 7 cigarette advertising to, during Roaring Twenties, 11-12 college-age, alcohol consumption among, 50 drug and alcohol abuse, welfare and, 7 effects from smoking on, 137-138 effects from drinking on, 139-140 effects from prescription drug abuse on, 140-141 mood-altering pills prescribed for, 3 in prisons, 86 smoking-related lung cancer rate among, 14 substance abuse, unisex legacy and, 135-142 in temperance movement, 16-17 on welfare, substance abuse and, 111-113,117 Women's magazines, cigarette advertising in, 14 Wood, Alexander, 135 World Health Organization, 123, 171 Framework Convention on Tobacco Control, 170 World Series, 57 World War I Eighteenth Amendment to Constitution adopted during, 17 fashionableness of cigarette smoking during, 11 World War 11 amphetamines used during, 21 introduction of mind-altering drugs in wake of, 21 smoking and GI toughness during, 12 Wright, Jim, 146 Wyeth Laboratories, 21 Xanax,27,29 XS Taquilla Sunrise, 58 Yankee Stadium, 56 40 Year Old Virgin, 53 YMCA, 11 'Zero tolerance' policies, 44 Zippers, 58, 159 ABOUT THE AUTHOR

J oseph A. Califano, Jr., was born on May 15, 1931, in Brooklyn, New York, where he grew up. High Society The Truth About Our Hopes, Dreams, and Fears DR. FRANK I. LUNTZ HYPERION NEW YORK CONTENTS

Copyright m 2oo9 Dr. Frank 1. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears For information address Hyperion, 114 Fifth Avenue, New York, New York, boll. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears FRANK I. LUNTZ JULY 4, 2009 INTRODUCTION DO YOU REALLY KNOW WHAT AMERICANS REALLY THINK?
Cut through the management-speak, and the key to success is simple: Observe people going about their daily lives, identify their unmet needs, and come up with new products. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears Today's space station may yield tomorrow's new MRI technol ogy, but no one cares. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears It just doesn't matter anymore, not because people don't care about the origin of new technology but because the aerospace industry doesn't relate that technology to their day-to-day lives. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears REALLY I CAN SEE CLEARLY NOW 3 Breaking into the morning ritual is for business what teenagers are to new-product development: the earlier you hook 'em, the more loyal they become. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears And then the iPhone, an instant smash because of its groundbreaking new look and futuristic functionality. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears In New York in aoor, people kept the faith because the mayor showed 1 30 them the way. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears In New Orleans in 2005,* faith in government and in the occupant of the White House blew away in the winds of Katrina. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears They thronged to Washington, a city they hate, to see the new president they adored. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears And they could see the results of their success on the streets of New York every day. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears It requires a brand-new lexicon. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears 274 To these people I say: Why feel bad about it? What's not fun about saving a hundred dollars on a new TV? Or thirty dollars on your grocer ies every week? Sure, the lines at the cash register aren't fun. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears TOTAL TOTAL 45% Liberty 47% Freedom to Own a Gun 29% Freedom from Having to Incriminate Yourself 33% Opportunity 25% Freedom of the Press 30% Justice 19% Freedom from Cruel and Unusual Punishment 17% Freedom to Peaceably Assemble 28% Democracy 17% Freedom to Petition the Government 2 4% Equality 17% Freedom to Have a Quick and Speedy Trial by a Jury of Your Peers 14% Freedom from Unreasonable Search and Seizure 16°% Pursuit of Happiness n% Freedom of Religion 15% Fairness 1 ° % Freedom of Speech 9% Privacy RELIGION/VALUES TOTAL 66°% Freedom of Speech 40°% Freedom of Religion 20% Freedom to Own a Gun 18°% Freedom from Unreasonable Search and Seizure 16% Freedom to Petition the Government 12% Freedom of the Press 12% Freedom from Cruel and Unusual Punishment 9% Freedom to Peaceably Assemble 5% Freedom to Have a Quick and Speedy Trial by a Jury of Your Peers z% Freedom from Having to Incriminate Yourself TOTAL 52% The Bill of Rights 48% The Ten Commandments TOTAL 65% Morals 35% Values TOTAL 64% Greed 8% Gluttony 7% Envy 7% Sloth 6% Vanity 5% Rage 4% Lust 284 BOSS TOTAL 91°% The Opportunity to Succeed 9% Protection from Failure TOTAL 84% A Lot Less Money at a job You Love 16% A Lot More Money at a job You Hate TOTAL 18% Less Than a Year 12% 1 Year 14% 2 Years 16% 3 or 4 Years 15% 5 to 9 Years 26% ro Years or More TOTAL 9% $50,000 27% $75,000 20% $100,000 1o% $125,000 15% $150,000 7% $200,000 8% $250,000 3°% $500,000 APPENDIX APPENDIX TOTAL 23 0 % 19% 2 3% 14% 9% 4°% 9% I Have No Savings A Month or Less Two-Three Months Six-Nine Months A Year Two Years More Than Two Years 285 TOTAL 43% Spend Time with Your Family 32% Day Trip Somewhere 25% Spend Time with Friends 15% Reading Books/Magazine 15% Clean up the Home 13% Catch up on a Hobby 12% Do Nothing at All 10% Use the Computer 1o°% Take a Long Nap 8% Exercise 6% Go Shopping 6% Go Play Sports 5°% Watch Television 286 PERSONAL PERCEPTIONS AND BEHAVIOR TOTAL 24% 66% 9% 2% TOTAL IO% 51% 35 ° % 4% TOTAL 43% A Little More Money 30% Fewer Day-to-Day Hassles 17% A Little More Free Time io% More Choices of the Things You Want TOTAL 46% Rich 27% Physically Strong 18% Powerful G% Sexy 4% Famous A Lot More Intelligent A Little More Intelligent A Little Less Intelligent A Lot Less Intelligent A Lot More Attractive A Little More Attractive A Little Less Attractive A Lot Less Attractive APPENDIX APPENDIX 287 TOTAL 79% Being Put on Hold by a Customer Service Representative 31% Waiting to Go Through Security at the Airport 29% Waiting at the Supermarket Checkout Line 29% Waiting at a Department Store to Pay for Your Items 25% Waiting to Make a Left Turn at a Busy Intersection 5% Waiting to Check in at a Hotel THE FUTURE TOTAL 43% 37% 34% 22% The Opportunity to Succeed The Good Life The Pursuit of Happiness The American Dream 17% A Fair Shake 13% To Be Left Alone 9% A Fresh Start 9% Everything I Can Get 8% A Fighting Chance 8% A New Beginning 288 TOTAL 31% Restoring National Economic Stability 31% Restoring Values and Morality to Society 29% Preventing Terrorism 29% Improving Schools and Education 26% Ending American Dependence on Foreign Oil 22% Restoring Political Accountability 22% Curing Cancer 22% Lowering the Tax Burden on Working Americans 13% Ending World Poverty 13% Closing the Widening Gap Between Rich and Poor 12% Global Warming 12% Restoring Personal Financial Security ro% Strengthening Social Security and Medicare 8% Ending Race and Gender Inequality 7% Restoring Respect for America Around the World 5% Ending Racial Inequality 5% Fighting Crime and Illegal Drug Use 3% Rebuilding Our Roads, Bridges, and Highways f a , number of signifcan :he United States today. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears xi, 139 movies, 37-38,193-95,204-5 MSNBC, 61, 142, 144, 146 Murdoch, Rupert, xx-xxi, 187 music, 192-93, 195, 198, 204 MySpace, xxxiii, 1 45 , 182, 188, 203, 20 4 , 259 National Council of Churches, 170 national security, 108 NBC, xxxiii, 61 NBC Nightly News with Brian Williams, xxxiii, 51 Netflix,37-38 Network, xxix,121 New Jersey, 55 Newly Retired group, 219 news, xxxiii, 3 - 4 ,1 4 6,1 84 , 272 newspapers, 3 New York, 57 New York Mets, 133 New York Times, 3, 78,130 New York Yankees, 57, iSo-81 Nike, 205 Noonan,Peggy,139 NPR, xxxiii NRA, x69,170 Obama, Barack, xi-iii, xxix, 31, 65, 67, 84,114, n9-20, 123, 130, r34-47,150,15s, 246 health care and, 230 religion and, 164-68 Chains Girl, 144 ObamaNation, 146-47 Ohio, 57 Olbermann, Keith, 139 Olive Garden, 2zon Olympics, 180 one-day-at-a-time mentality, 49 OnStar, 16-17 Organisation for Economic Co-operation and Development (OECD), 77 overweight, 31,171 Palin,Sarah, 142,162,173-74,2oo parental behaviors, 257-58 PATRIOT Act, 150 Patterson, John, is Paul, Ron, 1441 PBS, xi PCs, 58-59 peace of mind, zz5-27, 247, 248, 254 Pepsi, xxxii, 3o, 85 Perot, Ross, 121,153 personalization, xxviii, 20, 44, 156, 199, 234, 246 personal priorities, 256 Pew Forum on Religion and Public Life, 160, 259 Pew Research Center, 221 pharmaceutical companies, 229, 234-37 Phelps, Michael, i8o Pickens, T. Boone, 98 Playboy, 41-42,167 Plum Book, 138 politics: Generation zozo and, 203, 211 language and, 148-52 health care and, zz9-3o Internet and, 143-46 religion and, 158,163,164-68,173 retirement and, 226-27 see also government power of one,z3,6o Psychographic analysis, 70-72 public servants, 128 Purpose Driven Life, The (Warren), 167 INDEX INDEX 303 radio, xxxiii, 3 Raines, Franklin, u2 Ralphs, 209-1o Reagan, Ronald, axis, 134,136,138,139,16q,e7o, 179 RealClea,Politics, 143 real estate, 51, 52, 64-65 Recording Industry Association of America (RIAA), 193 relationship people, 70 religion, xxx, 70, 157 - 77, 254 discussing, 159,163,164,168,170,172-77 European attitudes about, 16x-62 evangelical/people offaith, 157, 158, 163-64 happiness and, 16r,254,259,26o McCain and, 168 Obama and, 264-68 politics and, 158,163,164-68,173 reestablishing respect for, 259-62 scandals in,170-71 spirituality and, 70-71, 158, 163-64, z6o survey results on, 283 top five churches, 167 young people and, 169-70, 172, 184, 257 Republicans, at, xxi, 125, 130, 131, 134, 135, 136, 139-40,147,149,150,151,152,r69,215 entrepreneurship and, 99 food and, 29 Medicare and, 237-38 religion and, r63, 164, 173, 174 sexand, 43 Stevens and 124,126 restaurants, xxxiv, 25, 28, 64, zzon retail stores, xxvii, xxxiii, 92, 264 customer service and, 23, 6o-64, 92 retirement, 225-49, 252, 270 frequently asked questions about, 224 health care and, 227-59 politics and, 226-27 Richard., What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears State-Corporate Crime: Wrongdoing at the Intersection of Business and Government Social justice THEORIES, ISSUES, AND MOVEMENTS Susan L. Miller, Victims as Offenders: The Paradox of Women's Violence in Relationships Susan F Sharp, Hidden Victims: The Effects of the Death Penalty on Families of the Accused LORETTA CAPEHEART AND Rules of the New Economy DRAGAN MILOVANOVIC Robert H. Tillman and Michael L. Indergaard, Pump and Dump: The Rancid Mariana Valverde, Law and Order: Images, Meanings, Myths Michael Welch, Scapegoats of September 1111: Hate Crimes and State Crimes in the War on Terror






RUTGERS UNIVERSITY PRESS New Brunswick, New Jersey, and London We dedicate this work to the reader, the student, the activist, and all of those seeking to know justice. Social Justice: Theories, Issues, and Movements At that time in the United States the three major higher degree granting programs were John Jay College of Criminal justice at New York City, where faculty were predominantly more conservative and were past or current practitioners in criminal justice; the School of Criminal justice at the State University of New York at Albany, which established the Albany Model based on vigorous scholarly analysis of criminal justice; and the crimi nology department at the University of California at Berkeley, which included a core group of Marxist-oriented faculty such as Tony Platt, Paul Takagi, and Herman and Julia Schwendinger. Social Justice: Theories, Issues, and Movements Not that traditional criminal justice courses were eliminated; rather, new courses were introduced with an empha sis on social justice.The Social Justice: Theories, Issues, and Movements Others (Hardt and Negri 2000, 2004) indicate that globalization is two-faced: on the one hand, new hierarchies, divisions, and mechanisms of control are being produced; on the other, new opportunities for cross national contacts, discussions, and sharing o£ diverse peoples have developed, thus 80 potentially producing both an appreciation of difference and a new sense of a global community. Social Justice: Theories, Issues, and Movements Watson (2002) described global capitalism as the immiseration of the working class on a global scale through profit seeking sped up by new 82 SOCIAL JUSTICE Multiculturalism, Globalism, and Challenges 83 technologies no longer requiring place in the same way. Social Justice: Theories, Issues, and Movements scenarios have played out in the United States, Australia, and New Zealand (see Pockock 1992). Social Justice: Theories, Issues, and Movements Paulo Freire (1976), in his 'pedagogy of the oppressed,' develops a dialogical pedagogy whereby the cultural revolutionary and the campasino together deconstruct and reconstruct codifications of reality Jacques Lacan's discourse of the analyst argues for the cultural revolutionaries working with hysterics (or persons in opposition) to encourage them to both distance themselves from dominant master signifiers that subordinate and to replace these with new mas ter signifiers that better embody their desire (Bracher 1993). Social Justice: Theories, Issues, and Movements ISO SOCIAL JUSTICE Critical Race Theory ('CRT') The civil rights movements of the 1960s were followed by retrenchment by the courts of the late 1960s and early 1970s whereby many of the new rights won were substantially reduced. Social Justice: Theories, Issues, and Movements Fearing the reelection of the 172 SOCIAL JUSTICE teamsters in rebuilding their unions in a democratic fashion, with union mem bers representing union members, gave new strength to the movement, which reached its peak in the 1950s. Social Justice: Theories, Issues, and Movements men went on strike in the mines and were quickly smashed directly by state inter vention and indirectly by new legal constraints imposed to protect mine own ers' profits (Ross 1999; see Moodie 2002). Social Justice: Theories, Issues, and Movements former three were successful in setting up new governments, the lat ter is still in process. Social Justice: Theories, Issues, and Movements 14 It promises to 'produce new 198 SOCIAL JUSTICE subjectivities and new forms of life.... Social Justice: Theories, Issues, and Movements These ideas grow specifically from a rejection of previous modernist assumptions and ask that new understandings be allowed to emerge and develop. Social Justice: Theories, Issues, and Movements In Chaos, 222 References Criminology, and Social Justice: The New Orderly (Dis)Order, ed. Social Justice: Theories, Issues, and Movements New Political Science 15:7-17. Social Justice: Theories, Issues, and Movements New York: Roseman and Littlefield. Social Justice: Theories, Issues, and Movements Vermont, 155 Balbus, Isaac, 146, 159 Baldus study, 144 Barker, W K., 173,174 Barker, Colin, 190,191 Barlow, Jeffrey, 78, 79, 81 Barry, Brian, 16 Bartlett, K., 111, 148 Bassiouni, M., 182, 184 Bator, Paul, 208 Baxstrom u Herald, 54 Beccaria, Cesare, 46 Beck, Ulrich, 54, 78, 79, 91,210 Been,Vicki,103 Bell, Derrick, 143,160 Benatar, Solomon, 84, 89 Bennet, Scott, 162 Berman, Harold, 55 246 Index Berne Convention for the Protection of Literary and Artistic Work, 113, 115 Bernstein, Mary, 159 Bhabha, Homi, 119,123-124 Black, Donald, 67-68, 209 Blacke, Michael, 119 Black Power Movement, 164,170 Boekmann, H. J., 81 Bohm, Robert, xi Bolivia: Cochabamba, 192-193; control of water, 193; Coordinadora, 193-194; nationalization of gas, 195; New Economic Policy, 193; Olivera, 194; and struggle for justice, 192-195; World Bank and International Development Bank, 193 Bowers v. Social Justice: Theories, Issues, and Movements See also critical feminist studies; Critical Latino/a Studies (LatCrits), equal protection Frank, Dana, 173,174 Fraser, Nancy, 43-44; folk paradigms of justice, 44 Freire, Paulo, 71, 122, 151, 210 Friedsky, Jean, 195 Fuller, Steve, 101, 102 249 Garrow, David, 163 Gans, Gerald, 12, 13, 15, 17 Gautney, Heather, 78 gay/lesbian studies, 154-156; argument for feminist and gay/lesbian studies, 155; banning adoptions, 155; civil unions, 155; Cornell's difference with Fineman, 155-156; Cornell and three suggestions for a new form of family, 155; distinguishing sex and gender, 154; feminist critique of gay/lesbian studies, 155; feminists reinforcing traditional categories, 154-155; Fineman and same-sexed marriages and abolition, 155; Fineman and sexual relations as consensual and contractual, 155; origins of, 154; same sexed families, 155; same-sexed marriages and the law, 155 Gbadegesin, Segun, 103 Geudens, H., 58 Gilligan, Carol, 21-22 250 Index Gledhill,John, 84-85,88,89 Gleeson, Brenada, 93 globalism, 77-92; definition, 78; 196-199 Goodchild, Philip, 132 Goodrich v. Social Justice: Theories, Issues, and Movements Department of Public Health, 155 Grad, Rachael, 113, 115, 116 Gramsci, Antonio, 121 grassroots struggles, 159-178; African American movements, 161-166; biological, psychological, and sociological theories of sexuality, 169; for class justice, 171-174; democratic presidential candidate John Kerry and non support for equal marriages, 170-171; for environmental justice, 174-176; three waves in environmental justice movements, 175; fourth model of social movements, chaos informed, 176-177; for genderjustice, 168-169; intentional communities, 176-177; internal differences and working toward common goals, 165; internal and external issues, 172-174; labor union involvement, 171; for Latino/a justice, 166-167; dialectics of struggle at NEW, 173; NEIU's faculty strike, movement fusion, 176; for sexual justice, 169-171; Stonewall Riots, 170. Social Justice: Theories, Issues, and Movements external critique, 125;judge's bad faith and denial, 132;justice as equivalent evaluation, 136; justice principles related to active justice as maximizing opportunities to become other, 134; language and subjectivity, 126; liberal ironists, 131; mode of information rather than mode of production, 138; multitude replacing proletariat in global arena, 138-139; new conceptions of those in struggle in a global order, 137; notion of desire, 133; passive v. Social Justice: Theories, Issues, and Movements These new theologians of the 'Thir d World' ar e that Christians sih not shun vioknre ut s uld mutate it, if violence is the only means of achieving the much needed rapid radical changes in life under dehumanizing systems. But if Luther's statement, 'We are Christ to the neighbor,' is to be taken seriously, and, if we can believe the New Testament witness which proclaims Jesus as resurrected and thus active even now, then he must be alive in those very men who are struggling in the midst of misery and humiliation. When the Spirit of God gets hold of a man, he is made a new creature, a creature prepared to move head-on into the evils of this world, ready to die for God. Its notable 88 development (compare Romans with The Humanity of God) is clearly a response to the new problems which mien face in worldly involvement. He felt commissioned by God m lead slaves into a new age of freedom. In an address, to be sent to slave', in 1848, at Buffaky New York, he said: If ... To be free means to be free to create new possibilities for existence. Reconciliation When Black Theology emphasizes the necessity of a theology of revolution based on the unity of black people committed to the task of destroying white racism, it is to be expected that many white religious people will ask: 'What about the biblical 143 144 BLACK TIMLOOY AND BLACK POWER message of reconciliation?' Whites who ask the question of blacks should not be surprised if some blacks reply: 'Yeah man, what about it?' The question, while it may be legitimate, bears a close resemblance to the old (new?) questions about integration and love. OBAMNS CHALLENGE America's Economic Crisis and the Power of a Transformative Presidency Robert Kuttner CHELSEA GREEN PUBLISHING WHITE RIVER UNCTION, VERMONT Copyright © 2008 by Robert Kutmer. Obama's Challenge The achievements of Reagan did not make our economy or society a more attractive habitat for 3 OBAMA'S CHALLENGE A GREAT PRESIDENT OR A FAILED ONE most people, but they nonetheless represented profound change. Obama's Challenge However, I am writing this book not as a cheerleader but as a sober counterweight to a lot OBAMA'S CHALLENGE of bad advice that he will receive to simply govern as a post partisan, pragmatic centrist. Obama's Challenge Progressives who backed Obama rather than John Edwards or Hillary Clinton for the Democratic nomination gave Obama a 7 OBAMA'S CHALLENGE pass on some of the issues. Obama's Challenge However, both Obama himself, and Furman at Obama's direction, reached out to several other 9 OBAMA'S CHALLENGE economists whose thinking cannot be characterized as orthodox. Obama's Challenge Even though Obama had the most left-of-center voting record, 13 OBAMA'S CHALLENGE A GREAT PRESIDENT OR A FAILED ONE John Edwards and Hillary Clinton both offered hotter rhetoric for the Democratic base. Obama's Challenge 'Chance, positioning, and managerial strategy-all 14 15 OBAMA'S CHALLENGE played a role in Lincoln's victory,' writes Doris Goodwin. Obama's Challenge 17 OBAMA'S CHALLENGE A GREAT PRESIDENT OR A FAILED ONE • A banking system that will lose between $1 and $2 trillion of capital. Obama's Challenge 18 19 OBAMA'S CHALLENGE A GREAT PRESIDENT OR A FAILED ONE Depressed Economy, Depressed Expectations These economic reversals, however, did not produce a politi cal counter-revolution-until now. Obama's Challenge 20 21 OBAMA'S CHALLENGE A GREAT PRESIDENT OR A FAILED ONE brokers and companies. Obama's Challenge 32 33 OBAMA'S CHALLENGE Notwithstanding the extraordinary achievements of Franklin Roosevelt's First Hundred Days and Lyndon Johnson's stunning Great Society Congress after his landslide victory in 1964, the more typical experience of incoming Democratic presidents has been that of John Kennedy, Jimmy Carter, and Bill Clinton. Obama's Challenge The huge 35 OBAMA'S CHALLENGE HOW TRANSFORMATIVE PRESIDENTS LEAD disadvantage: This was uncharted economic territory and nobody knew what to do. Obama's Challenge Though conditions today are not as dire as in 1933, Obama's challenge will be to give public definition to what Americans have been experiencing as largely private struggles, and restore a sense of collective possibility. Obama's Challenge In September 1932, campaigning in Sioux City, Iowa, Roosevelt declared, 'I accuse the present adminis tration of being the greatest spending Administration in peace 37 OBAMA'S CHALLENGE HOW TRANSFORMATIVE PRESIDENTS LEAD times in all our history.' Obama's Challenge As the omnibus banking reform legislation, later known as the Glass-Steagall Act, was making its way through the Senate, both Roosevelt and Senator Carter Glass were furious to be outmaneuvered by 39 OBAMA'S CHALLENGE HOW TRANSFORMATIVE PRESIDENTS LEAD Vandenburg, who tacked on a deposit-insurance provision that proved too popular to dislodge. Obama's Challenge But the people's trust and affection for FDR were never in doubt, and his leadership on behalf of the proposition that government exists 43 ORAMA'S CHALLENGE HOW TRANSFORMATIVE PRESIDENTS LEAD to help ordinary Americans survived Roosevelt by more than a quarter century. Obama's Challenge In May and June 1963, as chairman of President Kennedy's largely toothless Committee on Equal Employment Opportunity, Vice President Johnson repeatedly warned the president and his brother, Attorney General Robert Kennedy, that by splitting the difference between the civil rights movement and the increasingly brutal response of southern governors and sheriffs, the administration was pleasing 44 45 OBAMA'S CHALLENGE HOW TRANSFORMATIVE PRESIDENTS LEAD nobody and weakening its own authority and credibility. Obama's Challenge In a meeting on December 9, 1964, with Georgia senator Richard Russell, formerly his mentor 46 47 OBAMA'S CHALLENGE and closest ally in the Senate, Johnson declared: 'I'm not going to cavil and I'm not going to compromise. Obama's Challenge This bill will establish a simple, uniform standard 51 OBAMA'S CHALLENGE which cannot be used, however ingenious the effort, to flout our Constitution. Obama's Challenge 53 OBAMA'S CHALLENGE And somehow you never forget what poverty and hatred can do when you see its scars on the hopeful face of a young child. Obama's Challenge His Treasury secretary and then Federal 55 OBAMA'S CHALLENGE Reserve chairman, G. William Miller, was considered largely ineffectual in a crisis. Obama's Challenge His 57 OBAMA'S CHALLENGE foreign policy was competent and occasionally inspired, as in the Camp David Accords and in the Kosovo settlement. Obama's Challenge In Clinton's case, the 'interest group' that 59 OBAMA'S CHALLENGE he defeated was welfare recipients. Obama's Challenge 61 u OBAMA'S CHALLENGE Havingheartened radicals with his Emancipation Proclamation, he then set about reassuring conservatives with a plan to restore full constitutional and property rights in former rebel states once 10 percent of voters had taken an oath to support the United States. Obama's Challenge The political scientist Richard Valelly, in his book The Two Reconstructions, poses the question: Why did the creation of black voting rights and biracial politics prove short-lived in the post-Civil War era of Reconstruction but durable in the 'Second Reconstruction' of Lyndon Johnson? For a generation after the war, blacks held major office throughout the South, but by 1901 63 OBAMA'S CHALLENGE HOW TRANSFORMATIVE PRESIDENTS LEAD their rights had been wiped away. Obama's Challenge His own 65 OBAMA'S CHALLENGE party leaders did not rally to his defense, and the Republicans jumped all over him. Obama's Challenge 67 OBAMA'S CHALLENGE After Roosevelt put all his prestige and powers of persuasion on the line, the House of Representatives approved the Selective Service Act, by a single vote-another huge risk on the eve of an election. Obama's Challenge Roosevelt and his commander, General Eisenhower, repeatedly altered the location and the timing of the Normandy 68 69 OBAMA'S CHALLENGE invasion in response to intelligence findings. Obama's Challenge 71 OBAMA'S CHALLENGE Leadership and Partnership As the Bush presidency sputters to an end, there are paradoxi cal implications for the challenge of leadership. Obama's Challenge And the political corollary: 75 OBAMA'S CHALLENGE 5. Obama's Challenge The rather dour projections of the Social Security Trustees, which have been proven overly pessimistic for the past decade, forecast a seventy-five-year shortfall in the Social Security trust funds of 77 OBAMA'S CHALLENGE less than 1 percent of GDP. Obama's Challenge Under Bush II, the surplus was given away in tax 79 OBAMA'S CHALLENGE cuts and war-making. Obama's Challenge And if these foundations wanted more social outlay to materialize, about the last place on the planet to look for allies 81 OBAMA'S CHALLENGE was the Heritage Foundation-a group that would not back expanded social spending no matter what the fate of Social Security and Medicare. Obama's Challenge 83 OBAMA'S CHALLENGE The Aaron-Greenstein expert group released its own report in early July, declaring, 'We agree that the nation faces large, persis tent budget deficits that would ultimately risk significant damage to the economy.' Obama's Challenge 'Does 85 OBAMA'S CHALLENGE the total system need to be reformed? Yes, but it's unlikely to be done in a way that will save costs. Obama's Challenge We 87 OBAMA'S CHALLENGE have worked to give the American people a smaller, less bureaucratic government in Washington. Obama's Challenge In his celebrated keynote address to the Democratic National Convention in August 2004, the speech that established him as a potential president even before he had won election to the US Senate, Obama demonstrated how to talk about national unity in a manner that deftly moved the ideological debate onto the Democrats' home court, paving the way for more activist use of government: 89 OBAMA'S CHALLENGE Alongside our famous individualism, there's another ingredient in the American saga: A belief that were all connected as one people. Obama's Challenge It exists to ensure we take care of seniors, and the disabled, and for those who struggle mightily 91 OBAMA'S CHALLENGE whatever the reason. Obama's Challenge It reads in part: 93 OBAMA'S CHALLENGE They created the internet. Obama's Challenge The tax credits on low-income rental housing come in the form of tax breaks for developers and for investors who buy a share of 95 OBAMA'S CHALLENGE the artificial tax losses. Obama's Challenge Likewise his proposed credit for homeowners who do 97 OBAMA'S CHALLENGE not itemize deductions and are thus denied the benefit of the mortgage interest write-off. Obama's Challenge However, there are many 99 I ~I~UIU~~ I II I III I~~III Ii ~II I ~° I 9 ~~I I, II ~ilf II'II II'III I I i OBAMA'S CHALLENGE things society needs that are not efficiently produced at the right price and quantity by market forces. Obama's Challenge OBAMA'S CHALLENGE Committee on Financial Services. Obama's Challenge However, they put a subtle thumb on the scale in the way they 103 OBAMA'S CHALLENGE worded the descriptions of the various approaches that were read to focus groups. Obama's Challenge 105 OBAMA'S CHALLENGE Playing to Weakness Here's how some Democratic use of polling and focus groups rein forces equivocation. Obama's Challenge No wonder they sounded like 109 OBAMA'S CHALLENGE mush. Obama's Challenge Many of Feingold's Democratic colleagues told him how much they admired his principled lead ership, yet they voted with Bush because polls and pollsters told I I i IIN ll~ I IIIIIII~III'' OBAMA'S CHALLENGE them that the voters supported the President's defense of the homeland. Obama's Challenge OBAMA'S CHALLENGE 2. Obama's Challenge OBAMA'S CHALLENGE In Washington, some have promoted this idea as the Ownership Society, which is a polite way of saying you are on your
own. Obama's Challenge He also needs to transform prevailing ideo OBAMA'S CHALLENGE logical assumptions, so that the practical help attracts wide support and builds public approval for even bolder measures using activist government that will take longer to enact-and to reclaim support for the more fundamental progressive idea that government plays a constructive and necessary role. Obama's Challenge It is a matter of 125 OBAMA'S CHALLENGE basic macroeconomics that new outlays that are offset by other budget cuts or tax increases provide no net stimulus. Obama's Challenge Legislatively, I am assuming that while an emergency public 127 OBAMA'S CHALLENGE works program was advancing on one track, a program to repeal the Bush tax cuts would be moving on another. Obama's Challenge 133 OBAMA'S CHALLENGE Thus did the champion of deregulation become the leader of a squad tasked with cleaning up the mess deregulation had made. Obama's Challenge 135 OBAMA'S CHALLENGE Second, much of the banks' fee and interest income had been based on underwriting or trading these very same securities, or making other highly leveraged and highly risky deals. Obama's Challenge We should revisit the old arguments about 139 OBAMA'S CHALLENGE short selling. Obama's Challenge The large, 143 OBAMA'S CHALLENGE stable corporation is gone forever, as is America's unique economic dominance during a period when Europe was still recovering from war and Asia had not yet joined the modem global econ omy. Obama's Challenge Yet the fastest-growing 145 OBAMA'S CHALLENGE part of the economy is the service sector-most of whose jobs need to remain close to their customers and clients. Obama's Challenge Autoworkers in Mexico use the same production technology as workers in Michigan, but 147 OBAMA'S CHALLENGE their pay is about $2 an hour. Obama's Challenge Whereas registered OBAMA'S CHALLENGE nurses once performed a multiplicity of tasks and became very familiar with each patient, many hospitals have created a plethora of lower-wage occupations-phlebotomists to draw blood, techni cians to perform tests, nurse-aides to take blood pressures-leav ing the RN to cover more patients and do a far narrower range of tasks. Obama's Challenge Second, wages and salaries have been lagging inflation precisely during a period when more young Americans are completing 153 OBAMA'S CHALLENGE college. Obama's Challenge 155 OBAMA'S CHALLENGE The Danish model squares another circle by reconciling free trade with economic security. Obama's Challenge The labor movement's commitment, after all, is 157 ORAMA'S CHALLENGE to facilitating and rewarding work, not idleness. Obama's Challenge OBAMA'S CHALLENGE In the past, public policy has taken baby steps in all of these directions. Obama's Challenge 165 ORAMA'S CHALLENGE Obviously, there are many aspects of energy and environment policy beyond the scope of this brief book. Obama's Challenge As we saw in chap ter 3, many economists view escalating cost as the system's most 166 167 OBAMA'S CHALLENGE REPAIRING A DAMAGED ECONOMY serious problem. Obama's Challenge 168 169 OBAMA'S CHALLENGE REPAIRING A DAMAGED ECONOMY As insurance companies have attempted to constrain costs, primary-care doctors have seen caseloads rise, payments stag nate or decline, and allowable time per consultation dwindle. Obama's Challenge One merely bloats existing, inefficient 170 OBAMA'S CHALLENGE systems and locks them in, making transformational change more difficult. Obama's Challenge 173 OBAMA'S CHALLENGE The debate about 'free trade' versus 'protectionism' is a false one. Obama's Challenge The annual increased costs would be at the following order of magnitude: Permanent investment in public infrastructure: Energy indecendence Active labor-n arket policy Restoration of other so cial-outlay and intergovernmental aid 177 200 billion 100 billion 100 billion 100 When CRAMA'S CHALLENGE Professionalization of human-service work Universal pre-kindergarten and better day care Housing subsidies Savings from military cuts Total net increase: Six hundred billion dollars is, again, about 4 percentage points of our GDP. Obama's Challenge Some would say that the proposed program is not wise 179 OBAMA'S CHALLENGE policy; or that the crisis is not really that severe; or that it couldn't possibly win enactment; or that Obama, like the early Roosevelt, is a chameleon. Obama's Challenge OBAMA'S CHALLENGE Community, Government, and Self-Reliance But wouldn't an expansive use of government spending and regulation undercut Obama's cross-party appeal? Not if it is done right. Obama's Challenge 183 OBAMA'S CHALLENGE Yet the book was the object of a very favorable cover story in the flagship conservative magazine The Weekly Standard, and got laudatory blurbs from a galaxy of leading conservatives. Obama's Challenge In an era when worries have typically been more directed at inflation, it takes a little historic understanding to appreciate that 185 OBAMA'S CHALLENGE deflation can also be a grave threat. Obama's Challenge LBJ relied on moder ate Republicans to enact civil rights laws over the objection of conservative Democrats, and then turned to racially conservative 187 OBAMA'S CHALLENGE Dixiecmts in his own party to pass Medicare over the protests of Republicans. Obama's Challenge Bringing Republicans into a progressive policy consensus that Obama leads has been has been an Obama trademark ever since he 189 OBAMA'S CHALLENGE went to Springfield, Illinois, as a young state senator in 1997. Obama's Challenge On the Democratic side, very wealthy donors have heavily used III I V '' I I , I f , 11i~ L NI ~ II I I II I i i l l I 'q l llj~llll~ OBANIA'S CHALLENGE 527s to raise and spend money to register voters, build sophisti cated voter analysis and targeting software, and get out the vote. Obama's Challenge 195 OBAMA'S CHALLENGE Geoffrey Nunberg quotes an emblematic passage from the 1940 movie version of John Steinbeck's Grapes of Wrath, in which Tom Joad and his family, having finally made it to California in their jalopy, come upon a relief camp and are astonished as the caretaker describes what is on offer: Tom: You got dances, too? Obama's Challenge Electoral reform has been blocked in Congress, but a president who believed in expanding and deepening our democracy could 197 OBAMA'S CHALLENGE preside over an era of democratic renewal. Obama's Challenge When Obama went through his three weeks of midsummer straying to the political center-right, he heard from his supporters, 198 199 OBAMA'S CHALLENGE big-time. Obama's Challenge 201 OBAMA'S CHALLENGE AFTERWORD AND ACKNOWLEDGMENTS It turned out that Professor Burns was writing about 'transform ing' presidential leadership long before I addressed the subject. Obama's Challenge 205 OBAMA'S CHALLENGE 65 'The peace-loving nations ... Obama's Challenge 207 OBAMA'S CHALLENGE 128 The Congressional Budget Office estimates that www.cbo.gov/ftpdocs/93xx/ Obama's Challenge 201 Levy, Frank, 143 Lewis, John L., 145 Liebman, Jeffrey, 9 Light, Paul, 93 Lincoln, Abraham, 1, 2, 5, 6,15-16, 33, 34,36,44,53,58,59,6M4,66,73, 108, 117, 188, 199 Lima, Ryan, 15 Lipsky, Michael, 97, 202 Lovins, Amory, 163 Lykketoft, Mogem, 158 McCain, John, 25-26, 96, 126, 181, 191 Medicaid, 82, 83, 85, 86, 148, 168, 182 Medicare, 25, 77, 79, 80, 81-87, 98, 103-105,111,148,168,172,178, 188,189 Messina, Jim, 10 Meyerson, Harold, 202 Miller, G. William, 56 Minow, Newton, 7 Mondale, Walter, 21 Morris, Dick, 62 NAFTA, 34, 106, 144, 172, 173 Nelson, Ben, 188 Nelson, Bill, 188 Nixon, Richard, 55, 72, 78,197 Norquist, Grover, 189 Norris, Michele, 125 Nunberg, Geoffrey, 89,196 Chains, Bamck Appointees, 15 Audacity of Hope, 8, 11, 141 Character, 4, 8, 44, 64, 179, 181 Dreams from my Father, 7 Economic program, 25-26, 37, 78, 115-118,144-145,184-185 Energy policy, 14, 116-117, 122-124, 165-166 Financial policy, 30-31, 85, 87, 138-142,189 Foreign policy, 10, 14, 71, 115-118, 189 Health policy, 165-168,172 History, 12,14 Leadership, 1, 2, 4-6, 21, 31-33, 35-37,44,71,73,74,75,85-87, 89,103,112,115-118,125,142, 179-180,187-190,199-200 On race, 8, 17, 51 Partisanship, 4, 9, 12-13, 16, 90, 115-118,179-182,189,193-194 Political skills, 4, 5, 9, 12-13, 15-16, 90,115-118,193-194 Repositioning, 9-11, 31-32 OBAMA'S CHALLENGE Tax policy, 25, 97-98 Trade policy, 173-176 Oliver, Mary, 179 O'Neill, Thomas P. 'Tip,' 55 Patrick, Deval, 91 Paulson, Henry, 74,122, 133-135, 142 Peace Corps, 14, 44 Pelosi, Nancy, 12 Penn, Mark, 62, 106, 113 Perle, Richard, 71 Perot, H. Ross, 77 Peterson, Peter G., 78, 79, 80, 81 Pollsters, 5, 9, 56, 75, 103, 104-111, 113 Powell, Jody, 55 Pryor, Mark, 188 Public investment, 24, 28, 38-39, 92, 117-118,122-126,160-161 Rapaport, Miles, 92, 202 Reagan, Ronald, 3, 4, 6, 55, 57, 72, 76, 79, 87, 88, 94, 99,101, 108, 110, 114, 184,191 Beth, James, 49 Reich, Robert, 10, 202 Reischauer, Robert, 82-86 Rendell, Ed, 92 Republican Party, 24, 110, 114, 180, 181, 183-184,188-189,191-193 Rich, Frank, 17 Ritter, Bill, 91 Rivlin, Alice, 82, 84 Robinson, Jackie, 17 Roosevelt, Eleanor, 38 Roosevelt, Franklin Delano, 3, 5, 6, 15, 17,22,31,32,33,34,35-44,45,48, 49,50,53,54,58,59,62,64-70,74, 75, 77, 92, 95, 108, 109, 122, 124, 126, 128,129,130,134,135,137-138,140, 142, 144, 145, 167, 179, 180, 183, 184, 186, 188, 195, 196, 199 Bank holiday, 36, 39, 40-43 Great Depression, 17, 35-44, 122, 124, 126, 129, 134, 142, 145, 195 Financial regulation, 40-43, 136 138,140-142 World War II leadership, 64-69, 195 Roosevelt, Theodore, 198, 201 Rose, Stephen, 113 212 Rosenman, Sam, 39, 66 Rouse, Pete, 194 Rove, Karl, 71, 188, 189, 191, 192 Rubin, Robert, 9, 25, 82, 141 Russell, Richard, 47-48 Salam, Reihan, 183-184,195 Sawhill, Isabel, 82-85 Scalia, Antonin, 10 Schlesinger, Robert, 70 Schwerner, Michael, 49 Section 527 organizations, 191-192 Securities and Exchange Commission (SEC), 135-138 Service Employees International Union (SEIU), 146, 150 Shalala, Donna, 59 Short selling, 136-138 Shnrm, Robert, 108 Smith, Adam, 100 Social Security, 9, 25, 36, 77-87, 98, 167,182 Solow, Robert, 83 Sorensen, Ted, 46 Speth, James Gustave, 177 Spriggs, William, 10 Steagall, Henry, 39 Steinbeck, John, 196 Stern, Sir Nicholas, 160 Stewatt, Potter, 134 Stimson, Henry, 66 Sullivan, Amy, 108-109 Tamllo, Daniel, 32 INDEX Tax policy, 15, 24-25, 30, 76-79, 82, 85, 92,94,114,115,122,127,161-163, 183 Taylor, Fredrick Winslow, 151-152 Thomas, Clarence, 17 Trade policy, 159,172-176,187 Trade unions, see Labor movement Ttuman, Harry S., 109 213 Unemployment, 23, 26, 30, 55, 116, 123, 124, 126, 127, 143, 154, 155, 156, 157, 158,186 UNITE-HERE (union), 153 Urban Institute, 81, 83, 85 Valelly, Richard, 63-64,201 Vandenberg, Arthur, 39-40 Vietnam War, 6, 72 Volcker, Paul, 32, 56, 132 Voting Rights Act of 1965, 33, 49-54 Wage insurance, 158 Wagner Act, 144 Waldman, Michael, 89 Walker, David, 79,81 Wall StreetJournal, The, 10, 11 Welfare policy, 58-60 Westen, Drew, 107,109 Wieseltier, Leon, 17 Willkie, Wendell, 67 Wolfowitz, Paul, 71 Woods, Tiger, 8 About the Author Robert Kuttner is founding co-editor of The American Prospect and a senior fellow at the think tank Demos. Obama's Challenge One way we learn is through the mass 6 RACIAL PARANOIA Introduction 7 media; journalists can frame issues in ways that challenge or reinforce our own worst racial cliches and stereotypes: complicated college rape investigations are reduced to sim plistic racial melodramas; news wire services caption Kat rina photographs so that white victims merely 'find' food while black ones explicitly 'loot' for it. Racial Paranoia The histories of re sistance to exploitation and material inequities all around 62 RACIAL PARANOIA attacks on slavery, Martin Luther King Jr. and others used Christianity to challenge American racism in the twentieth century. Racial Paranoia Communications scholar Carolyn Marvin talks about electricity's beginnings (through oddities like telectroscopes and electronic corsets) as a way to challenge 168 RACIAL PARANOIA 'progress' myths about efficiency as the singular engine for invention and technological development. Racial Paranoia These cliches still suffice for romantic Hollywood tales of heroes and villains, but they are hardly up the challenge of repre senting how complicated and messy racism sometimes looks in our politically correct, post-civil rights present. Racial Paranoia To my editor, Mary Beth Hebert, thank you for meeting the challenge. Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me See also North Korea; South Korea Kucinich, Dennis, 205 Ku Klux Klan (KKK), 79 Kyoto Protocol, 194 Lantos, Tom, 171, 176, 177 Lautenberg, Frank R., 38 Leach, Jim, 113 Lebanon,36 LeClaire, Danielle, 167 Legorreta, Ricardo, 200 Lee Amendment, 145 Lee, Angela, 200 Lee, Barbara, 157; and abortion, 106, 107, 108; and AIDS, 113-17; birth of, 3; Black Panther Party, involvement in, 216 - Index 46, 50 51, 54-62, 148; and Black Student Union (BSU), 148, 149; bloodline of, 4; candidacy of, 155; Catholicism, conversion to, 28; as cheerleader, 29, 83, 84, 104; childhood of, 5, 6, 8, 10, 17-19, 25; and Shirley Chisholm, xiii, 87-91, 151; criticism of, 179; death threats against, 156, 178; divorce of, 21, 45, 46; domestic violence, as victim of, 134-37; education of, 26-28, 45-46, 80-81,108-9,148-51;in England, 84; family tree of, as confusing, 19-20; Florida vote, protest toward, 159; and 'food stamp challenge,' 203; in Ghana, 35, 197-198; and global warming, 193, 194; in Grenada, 36; in Israel, 35; marriages of, 20,30,31,84,104-6,130-33, 136; mentoring, importance of to, 89; at Mills College, 148-51; miscarriage of, 31, 104; Nobel Peace Prize nomination of, 193; Barack Obama, endorsement of, 162, 165, 166; and peace movement, 204, 205; pregnancy of, 29, 30, 104, 105; as radical, accusations of, 155-56; and religion, 25, 26; role models of, 77; at San Fernando High School, 29, 83, 84; as self-conscious, 27; self esteem of, 86; self-image of, 11, 12; September 11 attacks, reaction to, 170-75, 181; September 11 resolution, vote against, xiii-xiv, 34, 36, 66, 92-93,156,176-77,184-85, 187; as sexually active, 29; sexual awakening of, 102, 103; shame, feelings of, 82; at St. Joseph's, 26, 27, 28; support of, 182-85; as un-American, accusations of, 180 Lee, Carl (Barbara Lee's first husband), 20, 21, 29, 30, 31, 84, 104-6, 128-30; as good natured, 131, 132, 137 Lee, Carl (Carl Lee's father), 45 Lee, Carl Anthony (Tony), 10, 45, 128, 200, 204 Lee, Craig, 45, 128, 135, 200, 204 Lee, Memuna, 200, 204 Lee, Peggy (Carl Lee's mother), 45 Lee, Sheila Jackson, 167 Lessons from Before Roe: Will Past Be Prologue? Renegade for Peace and Justice: Congresswoman Barbara Lee Speaks for Me But the biggest challenge to central bankers is when a supply shock forces them to face both an unemployment and an inflation problem simultaneously. Ben Bernanke's Fed: The Federal Reserve After Greenspan 132 BERNANKE'S BELIEFS Inevitably, the uncertainty surrounding the outlook will be greater than normal, presenting a challenge to policymakers to manage the risks to their growth and price stability objec tives. Ben Bernanke's Fed: The Federal Reserve After Greenspan 148 BERNANKE'S BELIEFS The tough policy challenge comes in the extreme environment of a suspected asset price bubble or bust. Ben Bernanke's Fed: The Federal Reserve After Greenspan Since the day after his smashing 94 193o reelection, FDR had been the front-runner to challenge Hoover. The Defining Moment: FDR's Hundred Days and the Triumph of Hope Faced with a challenge to rethink how she was teaching Scripture, she quit her junior high job and began counseling people in her home. Quitting Church: Why the Faithful are Fleeing and What to Do about It 14 Having said that the 'Germanic element' in Russia had been extin guished, Hitler now called on Germans outside Russia to take up the 122 LENIN, STALIN, AND HITLER challenge of the racial struggle. Lenin, Stalin, and Hitler: The Age of Social Catastrophe After another century the empire would reach beyond the Urals to challenge Asia 36 STALIN TAKES THE UPPER HAND S talin's brief visit to the front in August 1943 gave him a psychologi cal advantage over Franklin Roosevelt and Winston Churchill. Lenin, Stalin, and Hitler: The Age of Social Catastrophe Indeed, he was actively anti-ideological: All ideas, theories, and precon ceptions were open to continual examination and challenge. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism Although the Secretary was famous for his willingness to challenge everyone's think ing and planning, he tended to defer to his field commanders on opera tional decisions. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism 568 ENDNOTES TO PAGES 9-16 and Martha Crenshaw, 'Incentives for Terrorism,' Outthinking the Terrorism: An International Challenge, Proceedings of the 10th Annual Symposium on the Role of Behavioral Science in Physical Security, 23-24 April f985, Springfield, Virginia, pp 21-22: If deterrence is a recommended policy against terrorist organizations, it should be doubly applicable to states that sponsor terrorists. War and Decision: Inside the Pentagon at the Dawn of the War on Terrorism But the Internet today is posing a real challenge. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... The challenge is that Shia doctrine teaches that God's love is not available for everyone, only for those who go through this very specific spiritual journey that we were teaching at the Hawza. Inside the Revolution Study Guide: How the Followers of Jihad, Jefferson & Jesus Are Battling to Dominate... INDEX A ABC News, 19, 20, 21, 69, 75, 84, 93, 96-97, 123, 129-30, 151, 155,170,171 ACORN, 8, 40, 57, 59-60, 84 Air America, 132 Al Qaeda, 30 A Manifesto for Media Freedom, 130-31 American University, 1, 2, 10,167 Anderson, Brian C., 130-32, 176 Anderson, Pamela, 46 'A Nixonesque Move by Team Obama,' 119 AP, (see Associated Press) Associated Press, The (AP), 83, 85-88 Astaire, Fred, 42 Atlantic, The, 15-16, 48 Axelrod, David, 114 Ayers, Bill, 9, 40, 59-61, 84, 87, 88,89-103,144 B Babington, Charles, 87 'Bamalot,' 10, 151-57 Barbour, Haley, 149 Barnes, Fred, 164 Barnicle, Mike, 5, 44 Baskin-Robbins, 17 BDS, (see Bush Derangement Syndrome) Beale, Howard, 29 Beam, Alex, 67 Beck, Glenn, 128 Bellantoni, Christina, 118 Bercovici, Jeff, 34 Beyonce,120 Bias, 1, 2,176 Biden, Jill, 119 180 A SLOBBERING LOVE AFFAIR Biden, Joe, 20, 58-59, 118-119 bin Laden, Osama, 9 Blackwell, Kenneth, 43 Bloomberg, 84 Boston Globe, 67 Boyer, Peter, 27 Braxton, Toni, 120 Brokaw, Tom, 13, 34-35, 101-2, 106,136-37 Burton, William, 92 Bush Administration, 52-53 Bush Derangement Syndrome (BIDS), 45 Bush Doctrine, 20-21 Bush, George H.W, 107 Bush, George W., 54, 148, 154 Butch Cassidy and the Sundance Kid, 35 C Caddell, Pat, 165, 176 Canadian Broadcasting Com pany, 48 Capitol Hill, 24 Captain Renault, 18 Capus,Steve, 33-35 Carter, Jimmy, 107 Casablanca, 18 CBS Evening News, 69,171 CBS Morning News, 17 CBS News, 1, 2, 16, 17, 19, 28, 41, 69, 71, 86, 123, 129-30, 143, 165,170-71 Center for Media and Public Affairs, 19 Chafee, Lincoln, 46 Chavez, Hugo, 102 Chicago Annenberg Challenge, The, 61,99 Chicago Sun Times, 40, 100, 120 City Joumal, 101 Clinton, Bill, 9, 64, 75, 95, 107, 110, 119, 156, 164 Clinton, Hillary, 4, 39, 65, 74, 92, 94-95,170 CNN, 17, 55, 59 Colbert, Stephen, 12 Cole, Juan, 47 Colmes, Alan, 30 Columbia Joumalism Review, 13 Contract with America, 108 Cook, Charlie, 21, 139-40 Cornell, 29 Countdown, 30 Comic, Katie, 106, 129 Cowan, Lee, 15 C-SPAN, 139 Cronkite, Walter, 8 Crouse, Timothy, 86 Curl, Joseph, 118 D Dallas Morning News, 118, 120 Daley, Richard, 92 Daniel, Douglass K., 87-88 Davis, Sammy, Jr., 42 Democrat-Gazette, 92 Democratic National Convention, 39, 70, 100 Dionne, E. J., 47 Doniger, Wendy, 47 Dohrn, Bernardine, 87, 91, 93, 102 Dowd, Maureen, 47 Down Syndrome, 49. A Slobbering Love Affair: The True (And Pathetic) Story of the Torrid Romance Between Barack Obama and the Mainstream Media Our constant challenge is to harness the often pas sionate energy of our arguments to the useful deals that can result, with out tearing ourselves apart. The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country McCain praised Charles Darwin's work, and 74 THE THIRTEEN AMERICAN ARGUMENTS argued that the 'only undeniable challenge the theory of evolution poses to Christian beliefs is its obvious contradiction of the idea that God cre ated the world as it is in less than a week.' The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country 'You should accept as Democrats the challenge to change,' he said, 'so that all of us can be part of an economic revival.' The Thirteen American Arguments: Enduring Debates That Define and Inspire Our Country However, there has not been a claimed res urrection for some time and no shaman who purports to do it has ever agreed to reproduce his trick in such a way as to stand a challenge. God Is Not Great: How Religion Poisons Everything But it can apolo gize for them, and also correct them, in its own terms and without having to shake or challenge the basis of any unalterable system of belief. God Is Not Great: How Religion Poisons Everything The Islamist challenge in each place has grown since the hardcover's publication. Marching Toward Hell: America and Islam After Iraq See also dividends stock exchanges, 27-29 stock market: bubble, 23, 40, 63, 69, 77, 90; categories, 101-2, 118, 123-24; chal lenge of, 12-13; crashes, 33,36,40,49-50,60-64, 80; cycles in, 61-62, 136; economy and, 22-23, 32-33,49-50,122-23; fluctuations in, 31-47; frustration with, 4-6; rising market, 122-23; under standing, 1-7, 15 stockbrokers, 120-21 stockholders, 24-25 Index Index Stocks for the Long Run (Jeremy Siegel), 65 strategies, 85-100, 143-44 successful investing, 143-44 Swift, Jonathan, 24
T takeovers, 45-46 taxation, 45, 94-95 tech stocks, 63-64, 72-73, 77, 80, 87, 90 technical analysis, 56-64 technical traders, 43, 55-64 Templeton, John, 54, 76 Thaler, Richard, 65, 163 Toys 'R' Us, 23 traditional savers, 116, 143 training, 143 Trump, Donald, 145
V valuation, 31-32, 37 Value Line, Inc., 17, 31 Value Line Investment Sur vey, 41 Vanguard 500 Index Fund, 68-69 Vanguard Dividend Apprecia tion (VIG), 105 Venetian Hotel and Casino, 43 volatility, 6, 29, 32, 38, 44, 49, 144 W Wall Street: challenge of, 12-13, 18-19; deceptive nature of, 3-4; Las Vegas and, 49-54; understand ing, 1-7, 1. Investing in One Lesson He rose to every challenge essentially the same way: increased liquidity and lower rates. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Rubber-stamp directors who rarely buck the chairman or challenge the CEO are unfortunately all too common. Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy 'That would seem to mean 418 that the Bush administration has screwed one of its own top secret operatives in order to punish Wilson or to send a message to others who might challenge it.' Cheney: The Untold Story of America's Most Powerful and Controversial Vice President Still, as the ad hoc committee explored the issue, there was increasingly a challenge to this idea. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch The question was not should 142 I MICHAEL WOLFF they but could they-it was not the logic of it but the challenge that was compelling. The Man Who Owns the News: Inside the Secret World of Rupert Murdoch We use polls we agree with to validate our point of view, while polls that challenge our assumptions are dismissed for their methodology or their inaccuracy. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears It is more clinical and more technical, and it suggests applying wisdom and analytics to a military challenge rather than simply throwing more troops into harm's way. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears Here's the entire quote: Our challenge is to get people persuaded that we can make progress when there's not evidence of that in their daily lives. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears After a few opening remarks, he launched into what I knew was coming: 'In this time of great challenge and change, in this era of intolerance and mis understanding, we have to look objectively at where our country stands WHAT AMERICANS REALLY WANT... What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears Medicare Part D presents an ongoing challenge to seniors because of 239 WHAT AMERICANS REALLY WANT_REALLY HOPE 1 DIE BEFORE I GET OLD 239 out of; your event at least two weeks in advance. What Americans Really Want...Really: The Truth About Our Hopes, Dreams, and Fears 'Speed, in turn, depends on informality and on uniformity; finality depends on minimizing the occasions for challenge. Social Justice: Theories, Issues, and Movements He identifies the Italian autonomist Marxists as amiable to this challenge, particularly the 138 SOCIAL JUSTICE Postmodern Forms of Justice 139 works of Negri, and postmodernists Guattari and Deleuze. Social Justice: Theories, Issues, and Movements On the one hand, law provides the tools for challenge in a court of law-an opportunity to be heard, to be able to name an injury in words recognized in law, to introduce evidence, to cross-examine, and to have an enforceable decision applied to injustices. Social Justice: Theories, Issues, and Movements

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