A Big Lack of Trust.

            The rise of big business hotly followed the Civil War.  Railroads, coal mines, steel mills, oil, telegraphs, and banks all grew in size and wealth as America industrialized.  Big companies integrated horizontally and vertically.  They formed ‘trusts” to cut up the national market and set prices without reference to market forces.  Companies played a rough game with each other, with their workers, and with their customers.[1]  The aggrieved fought back in a variety of ways, none of them very effective.  State regulation of railroads, national anti-trust legislation, and guns and dynamite made headlines without braking the advance of big business. 

            Louis Brandeis, lawyer and then Justice of the Supreme Court, advanced a compelling theory of anti-bigness.[2]  Brandies argued that there could be neither competition nor bargaining in sectors where one actor dominated the market for goods, services, or employment.  Moreover, a dominant company—well the handful of men who owned or controlled it–could impose its will in other areas thanks to the wealth it accumulated.[3]  His views came to dominate legal and government approaches to the growth of big business from the New Deal to the Eighties. 

            If a criticism might be offered, it is that the approach is subjective, moralistic, and essentially aesthetic.  It didn’t try to measure whether customers were economically better or worse off from any particular size of or market domination by a company.  It believed that competition should not be carried to its logical conclusion, victory for one competitor.  It could cite many instances of bad behavior by companies without demonstrating the representatives of those anecdotes.  Fundamentally, it reflected a view that, when pushed too far, inequalities of wealth and power are unseemly. 

            This view finally sparked an effective response in the Reagan Era.  In 1978, Yale law professor Robert Bork published The Antitrust Paradox.  The “paradox” identified by Bork lay in the raising of consumer prices and the limiting of competition through anti-trust laws that effectively protected established competitors.  Bork argued that “consumer welfare” should be the standard for deciding whether some merger should be allowed.  The price and variety of goods offered to the consumer could be measured objectively.  Bork’s view gained dominance in the courts. 

            If a criticism of this approach might be offered, it is that it views humans too narrowly.  How much stuff people can buy and at what price isn’t the only measure of human happiness or welfare.  For example, trust in the larger social, political, and economic systems to give people what they believe to be a fair shake in life also is essential.  That confidence often is based in emotion and intuition, rather than cold logic.  It is subject to manipulation.[4]  It’s real.  It’s vital. 

            Now a new phase in anti-trust has opened.  The current approach has been labeled “neo-Brandesian.”  Its face is Lina Khan, the new chair of the Federal Trade Commission. 


[1] See Glenn Porter, The Rise of Big Business, 1860-1920 (1992) for a concise summary of the scholarly literature.  See Raymond Chandler, The Long Goodbye (1953) for a mid-century popular evaluation: “There ain’t no clean way to make a hundred million bucks…. Somewhere along the line guys got pushed to the wall, nice little businesses got the ground cut out from under them… Decent people lost their jobs…. Big money is big power and big power gets used wrong. It’s the system.” 

[2] Greg Ip, “Latest Antitrust Approach Has Its Own Risks,” WSJ, 8 July 2021. 

[3] It’s probably hard to regulate anything effectively when one party can hire all the best lawyers. 

[4] American media is the last great industry largely free from government regulation.  Long may it so remain. 

What is not said.

            Wealth and income inequality have become a much-discussed issue in American politics.  Democrats emphasize the injustice and aesthetics of recent income and wealth inequality.  Narrowing that gap has become a primary concern for many Democrats.  One way to achieve this is to increase what Europeans call “social provision” of services and money to lower income groups.  The “human infrastructure” component of their plans call for government spending on child-care, universal pre-K, free community college, and expanded spending on health-care.  Once created, such entitlements do not go away.  They only expand. 

A second way is to substantially raise taxes on both the income and the underlying assets of the wealthy.  The maximalist version of the current infrastructure bill nicely illustrates this double policy.  As one New York Times reporter puts it: they “see a rare opportunity to harness the political popularity of infrastructure spending to achieve their long held policy of raising taxes on the rich.”  Senator Ron Wyden (D-Oregon), chairman of the Finance Committee, puts it succinctly: “What we’re doing is generating revenue, but we are also making a major area of American government more fair, so people don’t feel they’ve been played while the rich person gets off scot-free.”[1]  In sum, the Democrats have long desired to tax the rich and they think that they have finally found a winning justification. 

The tax proposals chiefly target corporations, the fossil fuels industry, and wealthy individuals.  First, the tax on corporations would rise from the current 21 percent, the “small business” tax break for certain partnerships and limited liability companies (LLCs) would end, and so would a provision that taxes the fees of private equity firms as capital gain rather than as income.  The tax breaks currently allowed to fossil fuel companies would be redirected to benefit “clean energy” companies.  The top tax rate on individuals would rise from 37 percent to 39.6 percent, and the tax on capital gains for those earning more than $1 million a year would rise from 20 percent to 39.6 percent.  It is hoped that such measures would generate $2.5 trillion in revenue over ten years. 

One thing that is not discussed is alternative uses for the increased tax revenue.  Over the last 20 years, the real Gross Domestic Product (GDP) of the United States has slightly more than doubled.[2]  Over the same period, the national debt has risen from about $6 trillion to about $27 trillion.[3]  That is, it has more than quadrupled.  From 2016 to 2020, the national debt increased from 106.6 percent of GDP to 127 percent of GDP.  This has taken place in an environment of near-zero interest rates.  If interest rates had to rise to counter either a serious inflationary surge or speculative bubbles, then the cost of that debt would rise as a share of the budget. 

Suggesting that the increased revenue go to reducing the debt to a more manageable size would be met with hoots of derision.  No one is going to want to pay for benefits that their predecessors received, but for which they refused to pay.  Herein lies the lesson. 


[1] Both quotes are from Jonathan Weisman, “Bipartisan Infrastructure Talks Collide With Democrats’ Goal to Tax Rich,” NYT, 21 June 2021.  Conservatives would contest the “scot-free” designation.  In their view, the top 10 percent of income earners paid 71,7 percent of federal income tax on adjusted gross income, while the bottom 50 percent of income earners paid 2.94 percent of the federal income tax on adjusted gross income.  See “Letters to the Editor,” WSJ, 26-27 June 2021.  As my beloved sister-in-law said when asked to define “fair”: “more, a lot more.” 

[2] See: https://www.statista.com/statistics/188105/annual-gdp-of-the-united-states-since-1990/ 

[3] See: https://fiscaldata.treasury.gov/datasets/historical-debt-outstanding/historical-debt-outstanding

The Age of Revolt 1.

            Where did “Trumpism”–the political movement–come from?[1]  It arose out of the profits and losses from globalization.  The costs were born by one segment of American society while the profits flowed to another segment.  The beneficiaries were, first and foremost, the “political, cultural, and financial elite.”  Their right to lead rested upon the pursuit of the common good. 

In theory, the free-trade policies pursued by a whole series of American administrations after the Second World War would benefit Americans.  They would allow the American economy to shift jobs producing low-value goods offshore and to redeploy assets toward higher-value jobs and goods.  For a long time, these policies had no costs for Americans.  The American economy emerged from the war with a long-term competitive advantage over anyone else.  It could have not only butter and guns, but low-end butter and high-end butter.  By the Sixties, that advantage had eroded badly.  As foreign competition began to bite, it turned out that a lot of people depended on those low-value jobs for their living and found it difficult to shift into high-value jobs. 

Globalization began to take a more serious toll on the American working class in the wake of the “Oil Shocks” of 1973 and 1979.[2]  That seems incomprehensibly long ago to most journalists and politicians, so they just ignore the larger story.  Then the North American Free Trade Agreement (NAFTA, 1994) reduced tariffs on trade with Mexico and Canada.  It accelerated the early wave of job-losses.  Already in the 1990s, Pat Buchanan and Ross Perot could run for president, if not win, on the loss of blue-collar manufacturing jobs.  At the same time, China’s abandonment of suicidal Maoist economic policies and its entry into the World Trade Organization (1990) greatly accelerated the loss of jobs.  Those job losses not only tossed many workers into unemployment, they also left whole communities hollowed out and unable to address human problems.  They not only tossed workers into unemployment, they undermined the value of the homes that formed an important asset of many workers.  They not only tossed workers into unemployment, they also foreclosed the possibility of the children of the workers finding steady work at a living wage anywhere near their parents. 

Globalization may have eroded manufacturing jobs, but it created enormous opportunities for the American financial services industry.  Industrializing countries needed capital and expertise.  Wall Street could provide both, not least because of the inflow of Chinese profits to New York banks and to the swelling 401(k) savings of the Baby Boomers.  Increasingly “cosmopolitan” in its outlook, Wall Street also became increasingly influential over national economic policy.[3] 

The year 2008 marked a turning point.  A great deal of elite foolishness and some guile created the 2008 financial crisis.  That, in turn gave rise to revolts on the right (Tea Party) and left (Occupy Wall Street); and to the invasion of the political system by “outsiders” like Barack Obama and Sarah Palin.  Donald Trump, the ultimate outsider, was just a heart-beat away. 


[1] Gerald F. Seib, “Where Trump Came From—And Where Trumpism Is Going,” WSJ, 16-17 January 2021. 

[2] “In the wake of” does not mean “solely caused by.”   For more of my peculiar view of this process, see https://waroftheworldblog.com/2015/03/02/american-union-stay-away-from-me-uh/  and https://waroftheworldblog.com/2015/12/17/the-new-economy/

[3] For one highly critical view of this process, see Simon Johnson, “The Quiet Coup,” The Atlantic, 5 May 2009. 

My Weekly Reader 15 November 2020.

            The Covid-19 pandemic has sent people streaming to History in search of previous events to provide some guidance for the present.[1]  Applying to America the understanding of the impact of epidemic disease formulated by his Yale colleague Frank Snowden, law professor John Fabian Witt argues that “New germs help make new laws and institutions, yet old ways of doing things shape the course of epidemics and the ways in which we respond to them.” 

            Witt discerns two trends in the American government response to disease, beginning with the smallpox epidemic that coincided with the Revolutionary War.  One is the development of preventive measures.  These measures include things like draining marshes and bogs to rob mosquitoes carrying malaria, yellow fever, and dengue of their habitat; providing city populations with clean water to drink and to clean the filth off the streets in order to avoid cholera; and the screening of populations to prevent the transmission of disease.[2]  Government, what Witt calls the “Sanitationist State,” grew in power in response to the need to prevent disease.  At the same time, science and medicine advanced rapidly in their ability to provide government with the needed tools.  All of these efforts Witt sees as expressing liberal values of a free society. 

            In contrast, there are the coercive or authoritarian measures of a “Quarantinist State.”  Governments caught up in a desperate emergency may impose an “authoritarian and discriminatory control over people of color, the poor, and immigrant newcomers.”  Here it is hard not to think that Witt may be using epidemic disease chiefly as a metaphor to criticize other forms of expanded government power.  “America’s record on infectious diseases is filled with discrimination and authoritarianism….Each new infection presents a risk of entrenching existing inequities.”  The same might be said of any national security emergency.  Witt may be extending an earlier argument against John Yoo’s interpretation of the Constitution in the aftermath of the undoubted emergency created by 9/11.[3]  However, one could just as easily point to the USA Patriot Act and the revelations of Edward Snowden for further examples of what can happen under an “emergency” that never seems to end. 

            Witt raises vital issues.  A democracy is rule by laws, not by men.  A democracy’s laws define the operations of government during normal times.  An emergency is a departure from what is normal.[4]  What becomes of the rule of law during an emergency?  Can the courts grant broad discretion to government officials to deal with an emergency?  When should government officials surrender such discretionary power?[5]  Is it fair to judge the quality of a democracy by what it does in an emergency, rather than by what it does in normal times? 

            Happily, American presidents have always pulled back or were pulled back from the brink in previous emergencies.  Those were decisions taken by individual men.  We know less about the behavior of the career bureaucrats who operate the machinery of government.


[1] See, for example, John Fabian Witt, American Contagions: Epidemics and the Law from Smallpox to Covid-19 (2020), reviewed by Adam J. White, WSJ, 10 November 2020. 

[2] The case of “Typhoid Mary: in 19th Century New York City offers a revealing example. 

[3] See: https://harvardlawreview.org/wp-content/uploads/pdfs/witt.pdf 

[4] War, rebellion, natural disasters, and epidemic or pandemic outbreaks of disease are common examples of conditions which may justify declaring a “state of emergency.”

[5] Declaring a “state of emergency” or a “state of siege” is a common feature of anti-democratic coups. 

Crisis of Democracy.

One way of telling the history of the Twentieth Century is to describe the Triumph of Democracy.  In 1900, only11 countries that could be described as political democracies: they granted all adult male citizens the right to vote and they applied the same laws to all citizens.[1]  The “War to Make the World Safe for Democracy” only somewhat advanced their cause: by 1920, there were 20 democracies and many of them had granted women the vote.  The interwar crisis and the Second World War centered on the defeat of aggressive tyrannies.  Thereafter, however, democracy advanced by leaps and bounds.  Western colonial empires were dismantled.  Democracy expanded its meaning from the purely political to social democracy, and legal protections for civil rights were greatly extended.  The Cold War ended in the collapse of the Soviet Union and its empire.  By 2003, there were 86 democracies in a world of 190-odd countries.[2]   

            Rather than continuing its advance, however, democracy has been in retreat since the mid-2000s.[3]  Where democracy continues to exist, “democratic norms and institutions” are being hollowed-out.  What has caused democracy to fall into disrepute?  What has caused dictators and would-be dictators to gain a new credibility? 

            The crisis arises both from specific personalities and from larger and more long-term systemic changes.  On the level of personalities, one can point to the interaction of Xi Jinping, Vladimir Putin, and Donald Trump.  Many of the successes for democratization owed at least something to American government backing for democratic movements and institutions from the of Jimmy Carter’s administration through the Reagan-Bush era.  Donald Trump’s administration has largely abandoned the “bully pulpit” on behalf of democracy in the shit-holes of the world.  A host of minor-league wannabe-tyrants draw inspiration from Chinese and Russian aggression. 

On the level of systems, two different sorts of problems exist.  On the one hand. regularly-held elections in which citizens choose their own leaders are not enough to make a country democratic.  Real, living democracy requires also a widely accepted “liberal” mindset.  It requires independent institutions like courts, business, media, and non-governmental associations.  Finally, it requires institutions of government (from the civil bureaucracy to the military to the intelligence services) that serve the nation, rather than any individual leader.  These are the “democratic norms and institutions” that are being hollowed around the world. 

On the other hand, all of these ills arise from the interaction of sclerotic political systems with increasingly indifferent citizens.  Here it becomes difficult to solve the chicken-or-the-egg problem.  Do frozen-up political systems foster citizen alienation?  Does they shift citizens into wavering between solving their own problems through ad hoc means or hoping for a strong-man who can burst the dam?  Does citizen alienation and indifference allow political systems to congeal around dead issues, rather the forcing them to address live issues? 

Neither answer holds much promise for revived democracy. 


[1] This bald definition invites enough qualifications to make your head spin.  For example, women didn’t have the vote; many representative governments hedged-in responsive government to serve an anti-democratic distrust of “the mob”; and democracies ruled over-seas empires in an undemocratic fashion. 

[2] Larry Diamond, “The Global Crisis of Democracy,” WSJ, 18-19 May 2019. 

[3] That is, it began during the years of the Obama-Biden administration. 

Election Investigations 1 21 October 2019.

James B. Stewart is nobody’s fool.[1]  His most recent book paws over what is known of the near-simultaneous and mid-election investigations of presidential candidates Hillary Clinton and Donald Trump.[2]

Hillary Clinton had used a private e-mail server for business and personal matters when federal regulations banned that practice.  She then “wiped” the hard-drive, deleting tens of thousands of messages about purely personal matters.[3]  The subsequent FBI investigation concluded that there existed no sign of criminal intent.

However, FBI agents in offices which had previously dealt with the Clintons (Little Rock, New York City) were “hotbeds of anti-Clinton hostility.”  FBI Director James Comey told Attorney General Loretta Lynch that “there is a cadre of senior people in New York who have a deep and visceral hatred of Hillary Clinton.”[4]

The Inspector General of the Justice Department later excoriated Comey for having usurped the authority of the then-compromised Attorney General Lynch.[5]  He had denounced Clinton’s “extremely careless” handling of information.  Then, an unrelated investigation of Congressman Anthony Weiner revealed that his wife, Huma Abedin—Hillary Clinton’s chief aid—had not informed the FBI that she had another computer on which “sensitive” information had been stored.  This had forced Comey to re-open the investigation late in the election.  This may have cost Hillary Clinton the 2016 election.[6]  Arguably, this was a violation of standard operating procedure in the FBI.

Stewart seems to suggest that there are a great many Republicans within the FBI and the Justice Department.[7]  Furthermore, they are motivated by their partisan commitments, rather than by a professional commitment to law enforcement.  “Comey felt bound to appease the Clinton-haters because they refused to accept any process that failed to yield their preferred outcome.”[8]

Exactly why Comey would feel obliged to appease the Clinton-haters is not clearly stated.  Would they leak embarrassing information about Clinton or someone else?  Would they compromise his re-appointment as Director?  Then, Comey seems to have leaked his memos to trigger appointment of a special prosecutor, who turned out to be Robert Mueller, a Republican.  Much remains to be learned.

[1] See: https://en.wikipedia.org/wiki/James_B._Stewart  I wonder if that makes him feel lonely?

[2] James B. Stewart, Deep State: Trump, the FBI, and the Rule of Law (2019).  See the review by Jonathan Chait, “There Are No Winners Here,” NYTBR, 20 October 2019, p.  11.

[3] Apparently, she did NOT transfer this trove of treasured personal communications to an external hard-drive for future reference because she isn’t someone who dwells on the past or retains e-mails from her daughter.

[4] As I understand it, the New York office had wanted to investigate the allegations of influence-peddling suggested in Peter Schweizer, Clinton Cash: The Untold Story of How and Why Foreign Governments and Businesses Helped Make Bill and Hillary Rich (2015).  They were not allowed to do so, probably because the source of the information was a partisan opponent seeking to discover harmful information.  FBI agents in the New York office may have leaked anti-Clinton information to conservative media.

[5] See: https://www.washingtonpost.com/apps/g/page/world/scathing-justice-dept-watchdog-report-rebukes-james-b-comey-cites-major-missteps-by-fbi/2309/

[6] Actually, it is difficult to say exactly what caused Hillary Clinton’s defeat in the election.  See:  Jonathan Allen and Amie Parnes, Shattered: Inside Hillary Clinton’s Doomed Campaign (2017).

[7] So it’s like military service.  Most Democrats will not fight for their country, although Pete Buttigieg and Tulsi Gabbard are exceptions.  For that matter, neither will most Republicans.

[8] Chait, “No Winners.”

Barr the Door 17 October 2019.

By April 2019, the investigation into allegations of conspiracy between the Donald Trump campaign and the Russkies concluded with a sort-of “Scotch verdict.”  Depending on your point of view of course.  Soon, Attorney General William Barr ordered an investigation of the origins of the “Russia probe” that had been carried out by the FBI before and after Donald Trump was elected President.  Barr wondered if the FBI might have “abused its power” in the investigation.  The Inspector General of the Department of Justice already had launched an inquiry into the FISA warrants used to justify surveillance of Carter Page.  However, the IG could compel testimony and secure documents only within the Department of Justice and the FBI.  Barr’s new investigation, backed by a presidential order for all agencies and departments to co-operate and permitting Barr to declassify any documents that he thinks right, seemingly could touch on the State Department, the Defense Department, and the intelligence community.  Barr had asked US Attorney John Durham to carry out that investigation.

In early October 2019, Barr and Durham went to Rome.  The two wanted the cooperation of the Italian government in their investigation.  Why Italy?  It’s the operating base for Joseph Mifsud, a Maltese professor who is suspected of having ties to the Russian intelligence service.  Mifsud had told Trump campaign aide George Papadopoulos that the Russians had “dirt” on Hillary Clinton.  Later, Mifsud eluded the FBI and then disappeared.  Where is he?  Will he talk?  Furthermore, in early July 2019, Christopher Steele met with an FBI agent stationed in Rome.  They had known each other from having participated in investigations of Central Asian-Russian organized Crime.  Steele shared his early concerns with the agent, who reported them to Victoria Nuland at the State Department.  It might be useful to sort out the details not covered by the documents and e-mails.

In addition, the two hoped to get help from the governments of Britain and Australia.[1]

They are interested in Australia because Papadopoulos told the Australian High Commissioner to Britain and his assistant, that he had learned that the Russian had “dirt” on Hillary Clinton during a meeting in May 2016.  Durham may want to know exactly when the Australians communicated this knowledge to the Americans.  Did they share the knowledge immediately, by mid-May, with the FBI or the CIA?  Did they share it in mid-June after the Russian hack of the computer server of the Democratic National Committee and of Hillary Clinton’s secret server became public knowledge?  Did they wait until mid-July, as the timeline of the FBI seems to suggest?  If they waited, why did they wait?  It was interesting news.

They may be interested in Britain because of the potential involvement of the British intelligence services, both MI-5 (domestic) and MI-6 (the foreign Secret Intelligence Service).  Christopher Steele had been a senior member of MI-6.  Now he runs a private “intelligence” organization out of London.  Can that business thrive if the intelligence “community” doubts you?  So, what—purely out of self-defense—did Steele tell the British s well as various Americans?  Did British agencies share that information with their American “cousins”?

It is important here to not confuse William Barr with Rudolph Giuliani.  Nor—so far–do the subject areas of their investigations overlap.  Will Barr’s investigation survive?

[1] “Barr hunts for signs of a plot to undermine Trump,” The Week, 11 October 2019, p. 5.

Summer 2016 2 10 July 2019.

In the many days ago, some people suspected that FIFA (International Federation of Football Associations—i.e. the organization that ran the “beautiful game”) was as crooked as a dog’s hind leg.  When the British Football Association contemplated trying to get the World Cup venue in 2018 or 2012, it hired Christopher Steele’s firm to investigate FIFA.  He learned a lot.  In 2011, when the FBI opened its own investigation into corruption in soccer, agents talked to Steele.  The FBI group conducting the soccer investigation, was the “Eurasian Organized Crime” group.  It was based in the New York field office, rather than in Washington.  The FBI group’s leader at that time may have been Michael Gaeta.  Gaeta later moved to the American embassy in Rome.[1]

In the first week of July 2016, Steele asked Gaeta to come to London.  Gaeta got the meeting approved by Victoria Nuland, the Assistant Secretary of State for European and Eurasian Affairs, then met Steele in London on 5 July 2016.  Steele gave the agent 2-4 pages highlighting his information gathered so far.  It has been reported that Gaeta said “I have to show this to headquarters.”[2]  Was that the answer Christopher Steele hoped to hear?

To whom did Michael Gaeta report?

On the one hand, Gaeta reported back to Assistant Secretary Nuland, sending the papers he had been given by Steele.  Nuland later stated that “our immediate reaction to that was, ‘This is not in our purview.  This needs to go to the FBI, if there is any concern here that one candidate or the election as a whole might be influenced by the Russian federation. That’s something for the FBI to investigate.”[3]  Unless Nuland was using the “royal we,” who were the people with whom Nuland discussed the information sent by Gaeta?  Did it go as far up as Secretary of State John Kerry?  Then what did Nuland do?  Did she forward the report to FBI headquarters or did she tell Gaeta to tell Steele to tell the FBI himself?

On the other hand, another account says that Gaeta also sent the reports to the Eurasian Organized Crime team in the FBI’s New York field office.  There it sat until mid-September 2016.[4]  Gaeta had been, or still was, the boss of the Eurasian Organized Crime team.  So, he sends this stuff to the outfit and they go “meh, fan-mail from some flounder”?  Or do they cable/email him back, going “WTF Mike?”  IDK, maybe the FBI does run like the Post Office.

In September 2016, a frustrated Steele shared some of his materials with Jonathan Winer, previously the deputy assistant secretary of state for international law enforcement, and before that an aid to Senator John Kerry, now the Secretary of State.  Winer took the stuff to Nuland, “who indicated that, like me, she felt that the secretary of state needed to be made aware of this material.”[5]

[1] Mark Hosenball, “Former MI-6 spy known to U.S. agencies is author of reports on Trump in Russia,” Reuters, 12 January 2017.

[2] Michael Isikoff and David Corn, Russian Roulette: The Inside Story of Putin’s War on America and the Election of Donald Trump (2018).

[3] Emily Tillett, “Victoria Nuland Says Obama State Dept. Informed FBI of Reporting from Steele dossier,” CBS News, 4 February 2018.

[4] Mike Levine, “Trump ‘dossier’ stuck in New York, didn’t trigger Russian investigation, sources say,” ABC News, 18 September 2018.  https://abcnews.go.com/Politics/trump-dossier-stuck-york-trigger-russia-investigation-sources/story?id=57919471

[5] Jonathan Winer, “Devin Nunes is investigating me. Here’s the truth,” Washington Post, 9 February 2018.

The New Russia Investigation The Usual Suspects 13 June 2019.

Paul Manafort.

During the Cold War, the United States applied the Roosevelt Standard to foreign rulers: “He may be a son-of-a-bitch, but he’s our son-of-a-bitch.”  Paul Manafort made a very good living by helping improve the image of some very bad people.  He represented Jonas Savimbi, Ferdinand Marcos, and Joseph Mobutu in the corridors of power.  All of this activity aligned with American foreign policy.  Then the Cold War ended.  Suddenly, the “sons-of-bitches” had to swim for it.  So did Manafort.  He found an apparent new gold-mine in working with the post-Soviet Russian oligarch Oleg Deripaska.  Much of this work focused on Ukraine.

Ukraine had escaped from the Soviet Union upon the collapse of the evil empire.  However, old antipathies and affinities survived in the new country.  Basically, the farther west you go, the more Russophobe the people become[1] and the farther east you go the more Russophile the people become.  From 2004 to 2010, Manafort found work trying to improve the political chances of the Russophile presidential candidate Viktor Yanukovitch.  It should have been obvious that this work aligned with post-Soviet Russian foreign policy.  Reportedly, sometime between 2006 and 2009, the American Ambassador to Ukraine, William Taylor, told Manafort that he was working against the interests of the United States.  Apparently, Manafort did not heed this warning.[2]  In 2010, Yanukovitch won the presidency in an election judged fair by international observers.[3]  In 2014 he aroused massive opposition among the Russophobes by reversing course on an application to join the European Union.  He certainly did this at the behest of Vladimir Putin.  Soon, Yanukovitch was both out of office and out of Ukraine.  According to one account, the FBI then opened a criminal investigation of Paul Manafort.[4]  It was still running when the FBI began its investigation of suspected conspiracy between the Russians and the Trump campaign in Summer 2016.

What did the FBI investigation launched in 2014 discover?  Did it discover that Manafort had scored big-time, but hadn’t reported his earnings to the IRS?[5]

Michael Flynn.

Michael Flynn had an impressive career in military intelligence during the “Global War on Terror.”  In April 2012, his ascent peaked when President Obama nominated him to lead the Defense Intelligence Agency.  Two years later, Flynn announced his retirement.   Normally, it seems, people get three years in that position, so he was leaving early.  Why?

On the one hand, there’s the whispering campaign.  It was “leaked” to the press that Flynn had a chaotic management style; he didn’t play well with others; he abused his staff; he wasn’t a team-player; and he had a loose grip on facts.  These seem like personality traits.  Nobody noticed them before while promoting him from Lieutenant to Lieutenant-General?  So I don’t think this is very credible.

On the other hand, there’s the counter-whispering campaign.  It has been suggested that Flynn repeatedly told the Obama White House that much of the opposition to Bashir al-Assad came from conservative-to-radical Muslims.  The “moderates” weren’t much present on the battlefield.  This seems to have contradicted the “narrative” preferred by the White House.  Eventually, the White House got fed up.

Then there’s this.  In February 2014, Flynn attended the “Cambridge Intelligence Seminar,”[6] run—in part–by Stefan Halper.  Reportedly, Halper found it alarming that Flynn seemed very close to a Russian woman who also attended the seminar.  Someone else shared these concerns with American “authorities.”[7]  The woman involved was Svetlana Lokhova.[8]  She denies that she spoke with Flynn for any extended period or that they had a personal relationship.  Did American authorities believe that Flynn had been caught in what John Le Carre novels call a “honey trap”?  The Director of the CIA at the time was John Brennan, subsequently an engaged participant in countering President Donald Trump’s allegations about the intelligence community.

[1] See: https://en.wikipedia.org/wiki/Holodomor

[2] Why not?  Perhaps because he was making a lot of money and the American government wasn’t offering him an alternative income.  Perhaps because he was trying to get his guy elected president of a new democracy.  America is all about exporting democracy.  What’s more important, democracy or getting the American candidate elected?

[3] See: https://www.theguardian.com/world/2010/feb/08/viktor-yanukovych-ukraine-president-election

[4] See: https://www.newsweek.com/donald-trump-paul-manafort-michael-flynn-russia-robert-mueller-turkey-620215  One might be forgiven for wondering if the investigation was pay-back for Manafort having ignored Ambassador Taylor’s warning.  If it was pay-back, it soon hit pay-dirt.

[5] If so, then what—exactly—was Robert Mueller doing with his time for two years?  The Russian hacking information came from the NSA and pretty damn quick at that.  Carter Page and George Papadopoulos were low-hanging fruit easily plucked.

[6] On the larger framework of the Seminar, see: https://thecsi.org.uk/  NB: The reported views of Sir Richard Dearlove are interesting.  For a recent iteration of the Seminar, see: https://www.hist.cam.ac.uk/seminars/intelligence

[7] See: https://www.nytimes.com/2018/05/18/us/politics/trump-fbi-informant-russia-investigation.html

[8] Her version of the encounter can be found at https://www.bbc.com/news/magazine-39863781  See also: https://thefederalist.com/2019/05/28/lawsuit-suggests-spying-trump-campaign-started-early-2016/

The Boston Massacre.

In 1768, the British government sent army troops to Boston, Massachusetts, to support the civil authorities in enforcing unpopular new laws.  The troops were equally unpopular as the laws.  On 5 March 1770, a crowd harassed a lone British sentry posted in the street before Boston’s Old State House.  An officer brought other soldiers to his support.  The crowd grew in size and emotional mobilization.  Long story short: the soldiers fired into the crowd, killing five.  We remember this tragedy as “The Boston Massacre.”

The bloody events came at a moment of intense political polarization in Massachusetts.  The political middle ground had disappeared as the people of Massachusetts divided into a large majority opposed to the policies of the Crown and a minority who supported those policies.  By the end of March, the British soldiers and four civilian employees of the Customs House—who were alleged to have fired into the crowd from the windows of the building—were indicted for murder.

A pamphlet campaign—part of the larger pamphlet war that preceded the American Revolution—told strikingly different stories about the Boston Massacre.  That media war was full of curiosities.  For example, one of the most inflammatory—and untrue—portrayals of the events came in an illustration by Henry Pelham.  The illustration showed the British officer ordering his men to fire into the crowd and a musket fired from a window.  Paul Revere copied that illustration and presented it as his own.  Pelham himself turned into a Loyalist who left Boston with the British troops and the other Loyalists in March 1776.

John Adams, a future signer of the Declaration of Independence and future President of the United States, defended the British soldiers when they were tried for murder.  Adams argued that the soldiers had the right to fight to defend themselves against the mob.  If any of the soldiers were provoked but not actually in danger, then they were guilty of manslaughter.  His argument persuaded the jury.  The officer commanding and six of his men were acquitted; two soldiers were convicted of manslaughter.  They escaped the death penalty by pleading “benefit of clergy” (i.e. they could read and write, which was enough to escape the gallows in literate-deficient colonial America.)  Instead, they were branded.  On the thumb.

The four civilians who were alleged to have fired from within the building were tried later.  All were acquitted and the man who had testified against them was later convicted of perjury.

In retrospect, Adams concluded that “The Part I took in Defence of Cptn. Preston and the Soldiers, procured me Anxiety, and Obloquy enough. It was, however, one of the most gallant, generous, manly and disinterested Actions of my whole Life, and one of the best Pieces of Service I ever rendered my Country. Judgment of Death against those Soldiers would have been as foul a Stain upon this Country as the Executions of the Quakers[1] or Witches[2] anciently.”

I butcher History in this fashion because Deputy Attorney General Rod Rosenstein recently analogized his handling of the Trump-Russia investigation to John Adams’ defending the British soldiers.[3]    The related analogies will suggest themselves.

[1] See: https://en.wikipedia.org/wiki/Boston_martyrs

[2] See: https://en.wikipedia.org/wiki/Salem_witch_trials

[3] Katie Benner, “Rosenstein Answers Critics In an Impassioned Speech,” NYT, 27 April 2019.