Krugman Calls Out Deficit Fear-mongering
Here we go again. Just like in 2003, groupthink is sweeping the nation. When the war drums were beating their loudest to attack Iraq, the media and pundits were onboard with the Bush administration lies. No one challenged what everyone knew to be true – that Saddam Hussein had weapons of mass destruction and he was going to attack the US. Now seven years later, we’re back at it again, but this time it’s that deadly deficit that will surely kill you and your family before the year is through.
Economist Paul Krugman has been calling for more deficit spending since the recession began. He wrote that “running big deficits in the face of the worst economic slump since the 1930s is actually the right thing to do. If anything, deficits should be bigger than they are because the government should be doing more than it is to create jobs.”
And according to Krugman, he’s not a lone ranger supporting deficit spending.
“Many economists take a much calmer view of budget deficits than anything you’ll see on TV. Nor do investors seem unduly concerned: U.S. government bonds continue to find ready buyers, even at historically low interest rates,” Krugman said in his Feb. 4 column.
So what’s all the fuss about deficits? It’s politics of course. The GOP and their talk radio and Fox News echo chamber have created the illusion that deficit spending is bad and needs to stop now.
Krugman wrote that “the current sense of panic is that deficit fear-mongering has become a key part of Republican political strategy, doing double duty: it damages President Obama’s image even as it cripples his policy agenda.”
And like the media’s duck-walking in lockstep with Bush’s push for war with Iraq, Americans will suffer if deficit spending is stopped now. Americans need jobs and they need them now. State governments can’t run deficits, but the federal government can.
“For the fact is that thanks to deficit hysteria,” Krugman said, “Washington now has its priorities all wrong: all the talk is about how to shave a few billion dollars off government spending, while there’s hardly any willingness to tackle mass unemployment. Policy is headed in the wrong direction — and millions of Americans will pay the price.”
Read Krugman’s column Fiscal Scare Tactics.”
This is the complete text of President Obama’s State of the Union delivered on Jan. 27, 2010 and transcribed by the White House.
Madam Speaker, Vice President Biden, members of Congress, distinguished guests, and fellow Americans:
Our Constitution declares that from time to time, the President shall give to Congress information about the state of our union. For 220 years, our leaders have fulfilled this duty. They’ve done so during periods of prosperity and tranquility. And they’ve done so in the midst of war and depression; at moments of great strife and great struggle.
President Barack Obama State of the Union 2010
It’s tempting to look back on these moments and assume that our progress was inevitable — that America was always destined to succeed. But when the Union was turned back at Bull Run, and the Allies first landed at Omaha Beach, victory was very much in doubt. When the market crashed on Black Tuesday, and civil rights marchers were beaten on Bloody Sunday, the future was anything but certain. These were the times that tested the courage of our convictions, and the strength of our union. And despite all our divisions and disagreements, our hesitations and our fears, America prevailed because we chose to move forward as one nation, as one people.
Again, we are tested. And again, we must answer history’s call.
One year ago, I took office amid two wars, an economy rocked by a severe recession, a financial system on the verge of collapse, and a government deeply in debt. Experts from across the political spectrum warned that if we did not act, we might face a second depression. So we acted — immediately and aggressively. And one year later, the worst of the storm has passed.
But the devastation remains. One in 10 Americans still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural communities have been hit especially hard. And for those who’d already known poverty, life has become that much harder.
This recession has also compounded the burdens that America’s families have been dealing with for decades — the burden of working harder and longer for less; of being unable to save enough to retire or help kids with college.
So I know the anxieties that are out there right now. They’re not new. These struggles are the reason I ran for President. These struggles are what I’ve witnessed for years in places like Elkhart, Indiana; Galesburg, Illinois. I hear about them in the letters that I read each night. The toughest to read are those written by children — asking why they have to move from their home, asking when their mom or dad will be able to go back to work.
For these Americans and so many others, change has not come fast enough. Some are frustrated; some are angry. They don’t understand why it seems like bad behavior on Wall Street is rewarded, but hard work on Main Street isn’t; or why Washington has been unable or unwilling to solve any of our problems. They’re tired of the partisanship and the shouting and the pettiness. They know we can’t afford it. Not now.
So we face big and difficult challenges. And what the American people hope — what they deserve — is for all of us, Democrats and Republicans, to work through our differences; to overcome the numbing weight of our politics. For while the people who sent us here have different backgrounds, different stories, different beliefs, the anxieties they face are the same. The aspirations they hold are shared: a job that pays the bills; a chance to get ahead; most of all, the ability to give their children a better life.
You know what else they share? They share a stubborn resilience in the face of adversity. After one of the most difficult years in our history, they remain busy building cars and teaching kids, starting businesses and going back to school. They’re coaching Little League and helping their neighbors. One woman wrote to me and said, “We are strained but hopeful, struggling but encouraged.”
It’s because of this spirit — this great decency and great strength — that I have never been more hopeful about America’s future than I am tonight. (Applause.) Despite our hardships, our union is strong. We do not give up. We do not quit. We do not allow fear or division to break our spirit. In this new decade, it’s time the American people get a government that matches their decency; that embodies their strength. (Applause.)
And tonight, tonight I’d like to talk about how together we can deliver on that promise.
It begins with our economy.
Our most urgent task upon taking office was to shore up the same banks that helped cause this crisis. It was not easy to do. And if there’s one thing that has unified Democrats and Republicans, and everybody in between, it’s that we all hated the bank bailout. I hated it — (applause.) I hated it. You hated it. It was about as popular as a root canal. (Laughter.)
But when I ran for President, I promised I wouldn’t just do what was popular — I would do what was necessary. And if we had allowed the meltdown of the financial system, unemployment might be double what it is today. More businesses would certainly have closed. More homes would have surely been lost.
So I supported the last administration’s efforts to create the financial rescue program. And when we took that program over, we made it more transparent and more accountable. And as a result, the markets are now stabilized, and we’ve recovered most of the money we spent on the banks. (Applause.) Most but not all.
To recover the rest, I’ve proposed a fee on the biggest banks. (Applause.) Now, I know Wall Street isn’t keen on this idea. But if these firms can afford to hand out big bonuses again, they can afford a modest fee to pay back the taxpayers who rescued them in their time of need. (Applause.)
Now, as we stabilized the financial system, we also took steps to get our economy growing again, save as many jobs as possible, and help Americans who had become unemployed.
That’s why we extended or increased unemployment benefits for more than 18 million Americans; made health insurance 65 percent cheaper for families who get their coverage through COBRA; and passed 25 different tax cuts.
Now, let me repeat: We cut taxes. We cut taxes for 95 percent of working families. (Applause.) We cut taxes for small businesses. We cut taxes for first-time homebuyers. We cut taxes for parents trying to care for their children. We cut taxes for 8 million Americans paying for college. (Applause.)
I thought I’d get some applause on that one. (Laughter and applause.)
As a result, millions of Americans had more to spend on gas and food and other necessities, all of which helped businesses keep more workers. And we haven’t raised income taxes by a single dime on a single person. Not a single dime. (Applause.)
Because of the steps we took, there are about two million Americans working right now who would otherwise be unemployed. (Applause.) Two hundred thousand work in construction and clean energy; 300,000 are teachers and other education workers. Tens of thousands are cops, firefighters, correctional officers, first responders. (Applause.) And we’re on track to add another one and a half million jobs to this total by the end of the year.
The plan that has made all of this possible, from the tax cuts to the jobs, is the Recovery Act. (Applause.) That’s right — the Recovery Act, also known as the stimulus bill. (Applause.) Economists on the left and the right say this bill has helped save jobs and avert disaster. But you don’t have to take their word for it. Talk to the small business in Phoenix that will triple its workforce because of the Recovery Act. Talk to the window manufacturer in Philadelphia who said he used to be skeptical about the Recovery Act, until he had to add two more work shifts just because of the business it created. Talk to the single teacher raising two kids who was told by her principal in the last week of school that because of the Recovery Act, she wouldn’t be laid off after all.
There are stories like this all across America. And after two years of recession, the economy is growing again. Retirement funds have started to gain back some of their value. Businesses are beginning to invest again, and slowly some are starting to hire again.
But I realize that for every success story, there are other stories, of men and women who wake up with the anguish of not knowing where their next paycheck will come from; who send out resumes week after week and hear nothing in response. That is why jobs must be our number-one focus in 2010, and that’s why I’m calling for a new jobs bill tonight. (Applause.)
Now, the true engine of job creation in this country will always be America’s businesses. (Applause.) But government can create the conditions necessary for businesses to expand and hire more workers.
We should start where most new jobs do — in small businesses, companies that begin when — (applause) — companies that begin when an entrepreneur — when an entrepreneur takes a chance on a dream, or a worker decides it’s time she became her own boss. Through sheer grit and determination, these companies have weathered the recession and they’re ready to grow. But when you talk to small businessowners in places like Allentown, Pennsylvania, or Elyria, Ohio, you find out that even though banks on Wall Street are lending again, they’re mostly lending to bigger companies. Financing remains difficult for small businessowners across the country, even those that are making a profit.
So tonight, I’m proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. (Applause.) I’m also proposing a new small business tax credit
– one that will go to over one million small businesses who hire new workers or raise wages. (Applause.) While we’re at it, let’s also eliminate all capital gains taxes on small business investment, and provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment. (Applause.)
Next, we can put Americans to work today building the infrastructure of tomorrow. (Applause.) From the first railroads to the Interstate Highway System, our nation has always been built to compete. There’s no reason Europe or China should have the fastest trains, or the new factories that manufacture clean energy products.
Tomorrow, I’ll visit Tampa, Florida, where workers will soon break ground on a new high-speed railroad funded by the Recovery Act. (Applause.) There are projects like that all across this country that will create jobs and help move our nation’s goods, services, and information. (Applause.)
We should put more Americans to work building clean energy facilities — (applause) — and give rebates to Americans who make their homes more energy-efficient, which supports clean energy jobs. (Applause.) And to encourage these and other businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the United States of America. (Applause.)
Now, the House has passed a jobs bill that includes some of these steps. (Applause.) As the first order of business this year, I urge the Senate to do the same, and I know they will. (Applause.) They will. (Applause.) People are out of work. They’re hurting. They need our help. And I want a jobs bill on my desk without delay. (Applause.)
But the truth is, these steps won’t make up for the seven million jobs that we’ve lost over the last two years. The only way to move to full employment is to lay a new foundation for long-term economic growth, and finally address the problems that America’s families have confronted for years.
We can’t afford another so-called economic “expansion” like the one from the last decade — what some call the “lost decade” — where jobs grew more slowly than during any prior expansion; where the income of the average American household declined while the cost of health care and tuition reached record highs; where prosperity was built on a housing bubble and financial speculation.
From the day I took office, I’ve been told that addressing our larger challenges is too ambitious; such an effort would be too contentious. I’ve been told that our political system is too gridlocked, and that we should just put things on hold for a while.
For those who make these claims, I have one simple question: How long should we wait? How long should America put its future on hold? (Applause.)
You see, Washington has been telling us to wait for decades, even as the problems have grown worse. Meanwhile, China is not waiting to revamp its economy. Germany is not waiting. India is not waiting. These nations — they’re not standing still. These nations aren’t playing for second place. They’re putting more emphasis on math and science. They’re rebuilding their infrastructure. They’re making serious investments in clean energy because they want those jobs. Well, I do not accept second place for the United States of America. (Applause.)
As hard as it may be, as uncomfortable and contentious as the debates may become, it’s time to get serious about fixing the problems that are hampering our growth.
Now, one place to start is serious financial reform. Look, I am not interested in punishing banks. I’m interested in protecting our economy. A strong, healthy financial market makes it possible for businesses to access credit and create new jobs. It channels the savings of families into investments that raise incomes. But that can only happen if we guard against the same recklessness that nearly brought down our entire economy.
We need to make sure consumers and middle-class families have the information they need to make financial decisions. (Applause.) We can’t allow financial institutions, including those that take your deposits, to take risks that threaten the whole economy.
Now, the House has already passed financial reform with many of these changes. (Applause.) And the lobbyists are trying to kill it. But we cannot let them win this fight. (Applause.) And if the bill that ends up on my desk does not meet the test of real reform, I will send it back until we get it right. We’ve got to get it right. (Applause.)
Next, we need to encourage American innovation. Last year, we made the largest investment in basic research funding in history — (applause) — an investment that could lead to the world’s cheapest solar cells or treatment that kills cancer cells but leaves healthy ones untouched. And no area is more ripe for such innovation than energy. You can see the results of last year’s investments in clean energy — in the North Carolina company that will create 1,200 jobs nationwide helping to make advanced batteries; or in the California business that will put a thousand people to work making solar panels.
But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country. (Applause.) It means making tough decisions about opening new offshore areas for oil and gas development. (Applause.) It means continued investment in advanced biofuels and clean coal technologies. (Applause.) And, yes, it means passing a comprehensive energy and climate bill with incentives that will finally make clean energy the profitable kind of energy in America. (Applause.)
I am grateful to the House for passing such a bill last year. (Applause.) And this year I’m eager to help advance the bipartisan effort in the Senate. (Applause.)
I know there have been questions about whether we can afford such changes in a tough economy. I know that there are those who disagree with the overwhelming scientific evidence on climate change. But here’s the thing — even if you doubt the evidence, providing incentives for energy-efficiency and clean energy are the right thing to do for our future — because the nation that leads the clean energy economy will be the nation that leads the global economy. And America must be that nation. (Applause.)
Third, we need to export more of our goods. (Applause.) Because the more products we make and sell to other countries, the more jobs we support right here in America. (Applause.) So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America. (Applause.) To help meet this goal, we’re launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security. (Applause.)
We have to seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores. (Applause.) But realizing those benefits also means enforcing those agreements so our trading partners play by the rules. (Applause.) And that’s why we’ll continue to shape a Doha trade agreement that opens global markets, and why we will strengthen our trade relations in Asia and with key partners like South Korea and Panama and Colombia. (Applause.)
Fourth, we need to invest in the skills and education of our people. (Applause.)
Now, this year, we’ve broken through the stalemate between left and right by launching a national competition to improve our schools. And the idea here is simple: Instead of rewarding failure, we only reward success. Instead of funding the status quo, we only invest in reform — reform that raises student achievement; inspires students to excel in math and science; and turns around failing schools that steal the future of too many young Americans, from rural communities to the inner city. In the 21st century, the best anti-poverty program around is a world-class education. (Applause.) And in this country, the success of our children cannot depend more on where they live than on their potential.
When we renew the Elementary and Secondary Education Act, we will work with Congress to expand these reforms to all 50 states. Still, in this economy, a high school diploma no longer guarantees a good job. That’s why I urge the Senate to follow the House and pass a bill that will revitalize our community colleges, which are a career pathway to the children of so many working families. (Applause.)
To make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans. (Applause.) Instead, let’s take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants. (Applause.) And let’s tell another one million students that when they graduate, they will be required to pay only 10 percent of their income on student loans, and all of their debt will be forgiven after 20 years — and forgiven after 10 years if they choose a career in public service, because in the United States of America, no one should go broke because they chose to go to college. (Applause.)
And by the way, it’s time for colleges and universities to get serious about cutting their own costs — (applause) — because they, too, have a responsibility to help solve this problem.
Now, the price of college tuition is just one of the burdens facing the middle class. That’s why last year I asked Vice President Biden to chair a task force on middle-class families. That’s why we’re nearly doubling the child care tax credit, and making it easier to save for retirement by giving access to every worker a retirement account and expanding the tax credit for those who start a nest egg. That’s why we’re working to lift the value of a family’s single largest investment — their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments.
This year, we will step up refinancing so that homeowners can move into more affordable mortgages. (Applause.) And it is precisely to relieve the burden on middle-class families that we still need health insurance reform. (Applause.) Yes, we do. (Applause.)
Now, let’s clear a few things up. (Laughter.) I didn’t choose to tackle this issue to get some legislative victory under my belt. And by now it should be fairly obvious that I didn’t take on health care because it was good politics. (Laughter.) I took on health care because of the stories I’ve heard from Americans with preexisting conditions whose lives depend on getting coverage; patients who’ve been denied coverage; families — even those with insurance — who are just one illness away from financial ruin.
After nearly a century of trying — Democratic administrations, Republican administrations — we are closer than ever to bringing more security to the lives of so many Americans. The approach we’ve taken would protect every American from the worst practices of the insurance industry. It would give small businesses and uninsured Americans a chance to choose an affordable health care plan in a competitive market. It would require every insurance plan to cover preventive care.
And by the way, I want to acknowledge our First Lady, Michelle Obama, who this year is creating a national movement to tackle the epidemic of childhood obesity and make kids healthier. (Applause.) Thank you. She gets embarrassed. (Laughter.)
Our approach would preserve the right of Americans who have insurance to keep their doctor and their plan. It would reduce costs and premiums for millions of families and businesses. And according to the Congressional Budget Office — the independent organization that both parties have cited as the official scorekeeper for Congress — our approach would bring down the deficit by as much as $1 trillion over the next two decades. (Applause.)
Still, this is a complex issue, and the longer it was debated, the more skeptical people became. I take my share of the blame for not explaining it more clearly to the American people. And I know that with all the lobbying and horse-trading, the process left most Americans wondering, “What’s in it for me?”
But I also know this problem is not going away. By the time I’m finished speaking tonight, more Americans will have lost their health insurance. Millions will lose it this year. Our deficit will grow. Premiums will go up. Patients will be denied the care they need. Small business owners will continue to drop coverage altogether. I will not walk away from these Americans, and neither should the people in this chamber. (Applause.)
So, as temperatures cool, I want everyone to take another look at the plan we’ve proposed. There’s a reason why many doctors, nurses, and health care experts who know our system best consider this approach a vast improvement over the status quo. But if anyone from either party has a better approach that will bring down premiums, bring down the deficit, cover the uninsured, strengthen Medicare for seniors, and stop insurance company abuses, let me know. (Applause.) Let me know. Let me know. (Applause.) I’m eager to see it.
Here’s what I ask Congress, though: Don’t walk away from reform. Not now. Not when we are so close. Let us find a way to come together and finish the job for the American people. (Applause.) Let’s get it done. Let’s get it done. (Applause.)
Now, even as health care reform would reduce our deficit, it’s not enough to dig us out of a massive fiscal hole in which we find ourselves. It’s a challenge that makes all others that much harder to solve, and one that’s been subject to a lot of political posturing. So let me start the discussion of government spending by setting the record straight.
At the beginning of the last decade, the year 2000, America had a budget surplus of over $200 billion. (Applause.) By the time I took office, we had a one-year deficit of over $1 trillion and projected deficits of $8 trillion over the next decade. Most of this was the result of not paying for two wars, two tax cuts, and an expensive prescription drug program. On top of that, the effects of the recession put a $3 trillion hole in our budget. All this was before I walked in the door. (Laughter and applause.)
Now — just stating the facts. Now, if we had taken office in ordinary times, I would have liked nothing more than to start bringing down the deficit. But we took office amid a crisis. And our efforts to prevent a second depression have added another $1 trillion to our national debt. That, too, is a fact.
I’m absolutely convinced that was the right thing to do. But families across the country are tightening their belts and making tough decisions. The federal government should do the same. (Applause.) So tonight, I’m proposing specific steps to pay for the trillion dollars that it took to rescue the economy last year.
Starting in 2011, we are prepared to freeze government spending for three years. (Applause.) Spending related to our national security, Medicare, Medicaid, and Social Security will not be affected. But all other discretionary government programs will. Like any cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don’t. And if I have to enforce this discipline by veto, I will. (Applause.)
We will continue to go through the budget, line by line, page by page, to eliminate programs that we can’t afford and don’t work. We’ve already identified $20 billion in savings for next year. To help working families, we’ll extend our middle-class tax cuts. But at a time of record deficits, we will not continue tax cuts for oil companies, for investment fund managers, and for those making over $250,000 a year. We just can’t afford it. (Applause.)
Now, even after paying for what we spent on my watch, we’ll still face the massive deficit we had when I took office. More importantly, the cost of Medicare, Medicaid, and Social Security will continue to skyrocket. That’s why I’ve called for a bipartisan fiscal commission, modeled on a proposal by Republican Judd Gregg and Democrat Kent Conrad. (Applause.) This can’t be one of those Washington gimmicks that lets us pretend we solved a problem. The commission will have to provide a specific set of solutions by a certain deadline.
Now, yesterday, the Senate blocked a bill that would have created this commission. So I’ll issue an executive order that will allow us to go forward, because I refuse to pass this problem on to another generation of Americans. (Applause.) And when the vote comes tomorrow, the Senate should restore the pay-as-you-go law that was a big reason for why we had record surpluses in the 1990s. (Applause.)
Now, I know that some in my own party will argue that we can’t address the deficit or freeze government spending when so many are still hurting. And I agree — which is why this freeze won’t take effect until next year — (laughter) — when the economy is stronger. That’s how budgeting works. (Laughter and applause.) But understand — understand if we don’t take meaningful steps to rein in our debt, it could damage our markets, increase the cost of borrowing, and jeopardize our recovery — all of which would have an even worse effect on our job growth and family incomes.
From some on the right, I expect we’ll hear a different argument — that if we just make fewer investments in our people, extend tax cuts including those for the wealthier Americans, eliminate more regulations, maintain the status quo on health care, our deficits will go away. The problem is that’s what we did for eight years. (Applause.) That’s what helped us into this crisis. It’s what helped lead to these deficits. We can’t do it again.
Rather than fight the same tired battles that have dominated Washington for decades, it’s time to try something new. Let’s invest in our people without leaving them a mountain of debt. Let’s meet our responsibility to the citizens who sent us here. Let’s try common sense. (Laughter.) A novel concept.
To do that, we have to recognize that we face more than a deficit of dollars right now. We face a deficit of trust — deep and corrosive doubts about how Washington works that have been growing for years. To close that credibility gap we have to take action on both ends of Pennsylvania Avenue — to end the outsized influence of lobbyists; to do our work openly; to give our people the government they deserve. (Applause.)
That’s what I came to Washington to do. That’s why — for the first time in history — my administration posts on our White House visitors online. That’s why we’ve excluded lobbyists from policymaking jobs, or seats on federal boards and commissions.
But we can’t stop there. It’s time to require lobbyists to disclose each contact they make on behalf of a client with my administration or with Congress. It’s time to put strict limits on the contributions that lobbyists give to candidates for federal office.
With all due deference to separation of powers, last week the Supreme Court reversed a century of law that I believe will open the floodgates for special interests — including foreign corporations — to spend without limit in our elections. (Applause.) I don’t think American elections should be bankrolled by America’s most powerful interests, or worse, by foreign entities. (Applause.) They should be decided by the American people. And I’d urge Democrats and Republicans to pass a bill that helps to correct some of these problems.
I’m also calling on Congress to continue down the path of earmark reform. Applause.) Democrats and Republicans. (Applause.) Democrats and Republicans. You’ve trimmed some of this spending, you’ve embraced some meaningful change. But restoring the public trust demands more. For example, some members of Congress post some earmark requests online. (Applause.) Tonight, I’m calling on Congress to publish all earmark requests on a single Web site before there’s a vote, so that the American people can see how their money is being spent. (Applause.)
Of course, none of these reforms will even happen if we don’t also reform how we work with one another. Now, I’m not naïve. I never thought that the mere fact of my election would usher in peace and harmony — (laughter) — and some post-partisan era. I knew that both parties have fed divisions that are deeply entrenched. And on some issues, there are simply philosophical differences that will always cause us to part ways. These disagreements, about the role of government in our lives, about our national priorities and our national security, they’ve been taking place for over 200 years. They’re the very essence of our democracy.
But what frustrates the American people is a Washington where every day is Election Day. We can’t wage a perpetual campaign where the only goal is to see who can get the most embarrassing headlines about the other side — a belief that if you lose, I win. Neither party should delay or obstruct every single bill just because they can. The confirmation of — (applause) — I’m speaking to both parties now. The confirmation of well-qualified public servants shouldn’t be held hostage to the pet projects or grudges of a few individual senators. (Applause.)
Washington may think that saying anything about the other side, no matter how false, no matter how malicious, is just part of the game. But it’s precisely such politics that has stopped either party from helping the American people. Worse yet, it’s sowing further division among our citizens, further distrust in our government.
So, no, I will not give up on trying to change the tone of our politics. I know it’s an election year. And after last week, it’s clear that campaign fever has come even earlier than usual. But we still need to govern.
To Democrats, I would remind you that we still have the largest majority in decades, and the people expect us to solve problems, not run for the hills. (Applause.) And if the Republican leadership is going to insist that 60 votes in the Senate are required to do any business at all in this town — a supermajority — then the responsibility to govern is now yours as well. (Applause.) Just saying no to everything may be good short-term politics, but it’s not leadership. We were sent here to serve our citizens, not our ambitions. (Applause.) So let’s show the American people that we can do it together. (Applause.)
This week, I’ll be addressing a meeting of the House Republicans. I’d like to begin monthly meetings with both Democratic and Republican leadership. I know you can’t wait. (Laughter.)
Throughout our history, no issue has united this country more than our security. Sadly, some of the unity we felt after 9/11 has dissipated. We can argue all we want about who’s to blame for this, but I’m not interested in re-litigating the past. I know that all of us love this country. All of us are committed to its defense. So let’s put aside the schoolyard taunts about who’s tough. Let’s reject the false choice between protecting our people and upholding our values. Let’s leave behind the fear and division, and do what it takes to defend our nation and forge a more hopeful future — for America and for the world. (Applause.)
That’s the work we began last year. Since the day I took office, we’ve renewed our focus on the terrorists who threaten our nation. We’ve made substantial investments in our homeland security and disrupted plots that threatened to take American lives. We are filling unacceptable gaps revealed by the failed Christmas attack, with better airline security and swifter action on our intelligence. We’ve prohibited torture and strengthened partnerships from the Pacific to South Asia to the Arabian Peninsula. And in the last year, hundreds of al Qaeda’s fighters and affiliates, including many senior leaders, have been captured or killed — far more than in 2008.
And in Afghanistan, we’re increasing our troops and training Afghan security forces so they can begin to take the lead in July of 2011, and our troops can begin to come home. (Applause.) We will reward good governance, work to reduce corruption, and support the rights of all Afghans — men and women alike. (Applause.) We’re joined by allies and partners who have increased their own commitments, and who will come together tomorrow in London to reaffirm our common purpose. There will be difficult days ahead. But I am absolutely confident we will succeed.
As we take the fight to al Qaeda, we are responsibly leaving Iraq to its people. As a candidate, I promised that I would end this war, and that is what I am doing as President. We will have all of our combat troops out of Iraq by the end of this August. (Applause.) We will support the Iraqi government — we will support the Iraqi government as they hold elections, and we will continue to partner with the Iraqi people to promote regional peace and prosperity. But make no mistake: This war is ending, and all of our troops are coming home. (Applause.)
Tonight, all of our men and women in uniform — in Iraq, in Afghanistan, and around the world — they have to know that we — that they have our respect, our gratitude, our full support. And just as they must have the resources they need in war, we all have a responsibility to support them when they come home. (Applause.) That’s why we made the largest increase in investments for veterans in decades — last year. (Applause.) That’s why we’re building a 21st century VA. And that’s why Michelle has joined with Jill Biden to forge a national commitment to support military families. (Applause.)
Now, even as we prosecute two wars, we’re also confronting perhaps the greatest danger to the American people — the threat of nuclear weapons. I’ve embraced the vision of John F. Kennedy and Ronald Reagan through a strategy that reverses the spread of these weapons and seeks a world without them. To reduce our stockpiles and launchers, while ensuring our deterrent, the United States and Russia are completing negotiations on the farthest-reaching arms control treaty in nearly two decades. (Applause.) And at April’s Nuclear Security Summit, we will bring 44 nations together here in Washington, D.C. behind a clear goal: securing all vulnerable nuclear materials around the world in four years, so that they never fall into the hands of terrorists. (Applause.)
Now, these diplomatic efforts have also strengthened our hand in dealing with those nations that insist on violating international agreements in pursuit of nuclear weapons. That’s why North Korea now faces increased isolation, and stronger sanctions — sanctions that are being vigorously enforced. That’s why the international community is more united, and the Islamic Republic of Iran is more isolated. And as Iran’s leaders continue to ignore their obligations, there should be no doubt: They, too, will face growing consequences. That is a promise. (Applause.)
That’s the leadership that we are providing — engagement that advances the common security and prosperity of all people. We’re working through the G20 to sustain a lasting global recovery. We’re working with Muslim communities around the world to promote science and education and innovation. We have gone from a bystander to a leader in the fight against climate change. We’re helping developing countries to feed themselves, and continuing the fight against HIV/AIDS. And we are launching a new initiative that will give us the capacity to respond faster and more effectively to bioterrorism or an infectious disease — a plan that will counter threats at home and strengthen public health abroad.
As we have for over 60 years, America takes these actions because our destiny is connected to those beyond our shores. But we also do it because it is right. That’s why, as we meet here tonight, over 10,000 Americans are working with many nations to help the people of Haiti recover and rebuild. (Applause.) That’s why we stand with the girl who yearns to go to school in Afghanistan; why we support the human rights of the women marching through the streets of Iran; why we advocate for the young man denied a job by corruption in Guinea. For America must always stand on the side of freedom and human dignity. (Applause.) Always. (Applause.)
Abroad, America’s greatest source of strength has always been our ideals. The same is true at home. We find unity in our incredible diversity, drawing on the promise enshrined in our Constitution: the notion that we’re all created equal; that no matter who you are or what you look like, if you abide by the law you should be protected by it; if you adhere to our common values you should be treated no different than anyone else.
We must continually renew this promise. My administration has a Civil Rights Division that is once again prosecuting civil rights violations and employment discrimination. (Applause.) We finally strengthened our laws to protect against crimes driven by hate. (Applause.) This year, I will work with Congress and our military to finally repeal the law that denies gay Americans the right to serve the country they love because of who they are. (Applause.) It’s the right thing to do. (Applause.)
We’re going to crack down on violations of equal pay laws — so that women get equal pay for an equal day’s work. (Applause.) And we should continue the work of fixing our broken immigration system — to secure our borders and enforce our laws, and ensure that everyone who plays by the rules can contribute to our economy and enrich our nation. (Applause.)
In the end, it’s our ideals, our values that built America — values that allowed us to forge a nation made up of immigrants from every corner of the globe; values that drive our citizens still. Every day, Americans meet their responsibilities to their families and their employers. Time and again, they lend a hand to their neighbors and give back to their country. They take pride in their labor, and are generous in spirit. These aren’t Republican values or Democratic values that they’re living by; business values or labor values. They’re American values.
Unfortunately, too many of our citizens have lost faith that our biggest institutions — our corporations, our media, and, yes, our government — still reflect these same values. Each of these institutions are full of honorable men and women doing important work that helps our country prosper. But each time a CEO rewards himself for failure, or a banker puts the rest of us at risk for his own selfish gain, people’s doubts grow. Each time lobbyists game the system or politicians tear each other down instead of lifting this country up, we lose faith. The more that TV pundits reduce serious debates to silly arguments, big issues into sound bites, our citizens turn away.
No wonder there’s so much cynicism out there. No wonder there’s so much disappointment.
I campaigned on the promise of change — change we can believe in, the slogan went. And right now, I know there are many Americans who aren’t sure if they still believe we can change — or that I can deliver it.
But remember this — I never suggested that change would be easy, or that I could do it alone. Democracy in a nation of 300 million people can be noisy and messy and complicated. And when you try to do big things and make big changes, it stirs passions and controversy. That’s just how it is.
Those of us in public office can respond to this reality by playing it safe and avoid telling hard truths and pointing fingers. We can do what’s necessary to keep our poll numbers high, and get through the next election instead of doing what’s best for the next generation.
But I also know this: If people had made that decision 50 years ago, or 100 years ago, or 200 years ago, we wouldn’t be here tonight. The only reason we are here is because generations of Americans were unafraid to do what was hard; to do what was needed even when success was uncertain; to do what it took to keep the dream of this nation alive for their children and their grandchildren.
Our administration has had some political setbacks this year, and some of them were deserved. But I wake up every day knowing that they are nothing compared to the setbacks that families all across this country have faced this year. And what keeps me going — what keeps me fighting — is that despite all these setbacks, that spirit of determination and optimism, that fundamental decency that has always been at the core of the American people, that lives on.
It lives on in the struggling small business owner who wrote to me of his company, “None of us,” he said, “…are willing to consider, even slightly, that we might fail.”
It lives on in the woman who said that even though she and her neighbors have felt the pain of recession, “We are strong. We are resilient. We are American.”
It lives on in the 8-year-old boy in Louisiana, who just sent me his allowance and asked if I would give it to the people of Haiti.
And it lives on in all the Americans who’ve dropped everything to go someplace they’ve never been and pull people they’ve never known from the rubble, prompting chants of “U.S.A.! U.S.A.! U.S.A!” when another life was saved.
The spirit that has sustained this nation for more than two centuries lives on in you, its people. We have finished a difficult year. We have come through a difficult decade. But a new year has come. A new decade stretches before us. We don’t quit. I don’t quit. (Applause.) Let’s seize this moment — to start anew, to carry the dream forward, and to strengthen our union once more. (Applause.)
Thank you. God bless you. And God bless the United States of America. (Applause.)
The Nation: Judge refuses to dismiss war crimes case against Blackwater

Blackwater founder Erik Prince
On Wednesday, a federal judge rejected a series of arguments by lawyers for the mercenary firm formerly known as Blackwater seeking to dismiss five high-stakes war crimes cases brought by Iraqi victims against both the company and its owner, Erik Prince. At the same time, Judge TS Ellis III sent the Iraqis’ lawyers back to the legal drawing board to amend and refile their cases, saying that the Iraqi plaintiffs need to provide more specific details on the alleged crimes before a final decision can be made on whether or not the lawsuits will proceed.
Read The Nation’s Jeremy Scahill’s complete story about Blackwater
Read the document archive of the cases against Blackwater

General Electric
If you listen to wind-bags like Glenn Beck and Sean Hannity you’d think that America is the greatest country ever formed and anyone who disagrees with them is a commie-terrorist-socialist-bastard. But if you look at where we’ve been, and more importantly, where we’re headed, the United States of America is no longer, if it ever was, the greatest country in the world.
First let’s set aside the rhetoric of the so-called patriots and let’s look at the reality of life in the US.
We once were a powerful industrialized nation that made things. We used to make everything from cars people actually purchased to televisions, radios, fans, suitcases, clothes and whatever else we needed. Now we make bankers, insurance policies and print money when we need more of it. Our manufacturing sector has been thoroughly gutted. We now import just about everything and export jobs to Taiwan, India, China and wherever corporations can find cheap labor. As a result, real wages in America continue to fall and consumer debt has skyrocketed. In August, Americans were shouldering $2.4 trillion in debt, with revolving debt at about $900 billion. Check the Federal Reserve stats on consumer debt
We also should look at education as Paul Krugman did in this column today.
If you had to explain America’s economic success with one word, that word would be “education.” In the 19th century, America led the way in universal basic education. Then, as other nations followed suit, the “high school revolution” of the early 20th century took us to a whole new level. And in the years after World War II, America established a commanding position in higher education.
But that was then. The rise of American education was, overwhelmingly, the rise of public education — and for the past 30 years our political scene has been dominated by the view that any and all government spending is a waste of taxpayer dollars. Education, as one of the largest components of public spending, has inevitably suffered.
Like manufacturing, education in American has been gored, gutted and tossed in the dumpster. Teachers are underpaid, students and parents don’t seem to give a rip, higher education is way too expensive and politicians tell us that all government spending on anything other than military is just wrong. While we’ve yet to truly realize the destruction of creating generations of uneducated citizens, when we do, it will be too late to do anything about it.
We’re seeing some of the impact of poor education with the so-called tea bag protesters who don’t know why they’re mad – they just are. They can’t think critically about any issue because they haven’t been taught the value of critical thought. This is just the beginning. In another 20 years we’re going to have millions of citizens who can barely read and write trying to compete with countries like India, China, France and Germany that actually do believe that education is the key to their nation’s success.
Our priorities are completely out of whack in the US. We’d rather spend more than $1 trillion fighting the wars in Iraq and Afghanistan with no clear objective in mind, than on health care, education and building industries of the future. So what can we do to change this? Unfortunately, the answer is not much. Our political system has been hijacked by defense contractors, ideologues and corporations. Everything that we do has to involve the “profit motive,” which is another way of saying, corporations need to make money off of education, war, health care and anything else the government does. And if you think we should just elect people to Congress who can change this – we can’t. At least 90 percent of all House of Representative seats are not competitive because of elaborate gerrymandering and the high cost of running a campaign.
The only way to change the direction of this country from continuing down the rabbit hole is for a complete overhaul of our political process and political parties. And the only way for that to happen is through an outright rebellion by the people. Our only hope is to organize. We need to make use of technology to communicate and coordinate a takeover of the government and put the power in the hands of people. Anything short of a true revolution will not result in any meaningful change.

Paul Krugman economist
Paul Krugman has moved past the current health care reform debate and onto the next big problem – global warming. Kudos to Krugman for trying to stay ahead of the game of political discourse and trying to push the case for real environmental reform, but getting American capitalists to pollute less is going to make the health care debate look like a stroll through Central Park on warm summer day.
But the larger reason we’re ignoring climate change is that Al Gore was right: This truth is just too inconvenient. Responding to climate change with the vigor that the threat deserves would not, contrary to legend, be devastating for the economy as a whole. But it would shuffle the economic deck, hurting some powerful vested interests even as it created new economic opportunities. And the industries of the past have armies of lobbyists in place right now; the industries of the future don’t.
Nor is it just a matter of vested interests. It’s also a matter of vested ideas. For three decades the dominant political ideology in America has extolled private enterprise and denigrated government, but climate change is a problem that can only be addressed through government action. And rather than concede the limits of their philosophy, many on the right have chosen to deny that the problem exists.
So there you have it, like health care reform, the green economy President Obama said he wants to create will remain underrepresented in Washington. But maybe, just maybe, Obama can provide the much needed leadership to take on the Elite who like things the way they are, to give the innovative new companies a chance to change our path to destruction into one of salvation. He just better not leave it up to Congress like he did with health care reform or we’re all screwed.
Read Krugman’s column The New York Times.
Books by Paul Krugman on Amazon
The Return of Depression Economics and the Crisis of 2008
The Conscience of a Liberal
The Great Unraveling: Losing Our Way in the New Century
Essentials of Economics

Blackwater founder Erik Prince
On Sept. 9, 2009, another civil case was filed against Blackwater founder Erik Prince for allegedly masterminding a holy war campaign in Iraq to kill Iraqis.
The plaintiffs allege the on Sept. 9, 2007, a Blackwater employee Evan Liberty recklessly drove through the streets of Baghdad firing his weapon without reason or regard to who he was shooting. As a result, one of the defendants was shot in the head, another in the leg and the other two claim “assault by gunfire.”
The complaint states that “Mr. Prince is personally responsible for the assaults on Plaintiffs because Mr. Liberty’s egregious misconduct was not an isolated or aberrational act. Rather, as will be shown by reasonable discovery, Mr. Prince personally directed and permitted a heavily-armed private army, including but not limited to Mr. Liberty, to roam the streets of Baghdad killing innocent civilians.”
This is just one of many cases filed in the US District Court for Eastern District of Virginia. I’ve compiled a reasonably complete archive of the court documents pertaining to these civil cases here.
Regardless of the allegations of murder, conspiracy to commit murder and Prince’s alleged holy war against Islam, President Obama continues to employ Blackwater in Iraq under the name Xe. Here’s a story about that.
A complete listing of all Blackwater related stories is here.
The Courthouse News has a story about the latest here.
The Nation’s Jeremy Scahill’s book “Blackwater: The Rise of the World’s Most Powerful Mercenary Army“
Blackwater contractors accused of killing as many Iraqis as possible
Private security guards who worked for Blackwater repeatedly shot wildly into the streets of Baghdad without regard for civilians long before they were involved in a 2007 shooting episode that left at least 14 Iraqis dead, federal prosecutors charge in a new court document. Read the entire New York Times story.
Here’s an Alternet story about the media’s unwillingness to press the issue of Blackwater’s war on Islam.
There’s a separate case against Blackwater in Virginia that alleges Erik Prince is waging his own personal crusade against muslims. Here are the court documents relating to the case.
The Afghanistan Quagmire
President Obama is ratcheting up the war in Afghanistan with more troops and more money. What the hell is he doing?
There was a story the other day in the Portland Daily Sun about a young soldier killed in Afghanistan. What did he die for? Does Obama really think he’s going to be able to do what Russia couldn’t do when they killed a couple million Afghanis before heading home in 1989 with their tail between their legs?
Bob Herbert said in his column today that the Bush administration screwed up the war in Afghanistan from the get-go and no amount of money and troops is going to salvage it.
Why do we keep doing this? Why do we keep repeating the mistakes of Vietnam? I mean, it wasn’t so long ago that we should have forgotten it already. The wars in Iraq and Afghanistan have claimed the lives of more than 5,000 US soldiers, hundreds of thousands of civilians and more than a trillion dollars.
It makes no sense. Obama should be ashamed of himself. Every death is on his hands now. He has no excuse. This isn’t change we can believe in. Hope? Whatever.
The State Department has extended a contract with controversial private security firm Blackwater, ABC News has learned. The contract was due to expire this month.

Blackwater founder Erik Prince
Sources say the department has agreed to temporarily continue using the subsidiary known as Presidential Airways to provide helicopter transport for embassy employees around Iraq until a new contract with another security company, Dyncorp International, is fully implemented. Presidential Airways is an arm of U.S. Training Center, which is a subsidiary of the company Xe, formerly and still commonly known as Blackwater.

Vice President Dick Cheney
Dick Cheney is amazing. It’s like he’s really living in another universe. Here’s what he said on Fox this morning about torturing prisoners.
“I’m very proud of what we did in terms of defending the nation for the last eight years successfully,” Cheney said.
Here’s an excerpt from a review by the CIA inspector general of the torture program.
In June 2003, the U.S. military sought an Afghan citizen who had been implicated in rocket attacks on a joint U.S. Army and CIA position in Asadabad located in Northeast Afghanistan. On 18 June 2003, this individual appeared at Asadabad Base at the urging of the local Governor. The individual was held in a detention facility guarded by U.S. soldiers from the Base. During the four days the individual was detained, an Agency independent contractor, who was a paramilitary officer, is alleged to have severely beaten the detainee with a large metal flashlight and kicked him during interrogation sessions. The detainee died in custody on 21 June; his body was turned over to a local cleric and returned to his family on the following date without an autopsy being performed.
Now that’s just one incident in which one man was murdered after he turned himself in. I wonder what his family and neighbors felt when they were returned a corpse?
But back to Cheney’s assertion about keeping us safe for eight years. There was that little event we call 9/11. I know I won’t forget that nearly 3,000 of us were killed on a sunny Fall morning while Cheney and Bush were “protecting” us. Now I know what you’re thinking, you’re thinking that they weren’t torturing people before 9/11, and we were attacked, ergo when Cheney started waterboarding people and beating them to death with flashlights, that’s when we were safe. One can find a correlation between torture and a lack of terrorist attacks here in the US, but correlation does not equal causation. In fact, in the documents Cheney cites as evidence that torture saved lives, the author clearly states that there is no evidence that torture provided any actionable intelligence that saved our nation from attack.
And in terms of who’s to blame for 9/11, I know Cheney tried to pin that on President Clinton, but it never stuck. So if 9/11 happened on Cheney’s watch, why does he feel he gets a pass? If 9/11 had happened under Clinton, do you think Cheney would just chalk it up to “stuff happens”?
Also, it’s common knowledge that President Bush and Vice President Cheney did not consider terrorism a serious threat before 9/11. If they did, they certainly didn’t act like it. Just read the 9/11 commission report. The authors of the report tried very hard to give Bush and Cheney a get of jail free card for 9/11, but there’s no doubt that the Bush administration had a laissez-faire attitude to towards terrorism.

Project for a New American Century: Rebuilding America's Defenses
What happened after 9/11 could never have happened without it. What we know of so far is that there was torture, eavesdropping, prisons full of suspected “terrorists,” two wars, a bloated privately owned military industrial complex, a shattered economy and a radicalization of a pretty sizable segment of the population here and around the globe.
Dare I say, the reason Cheney doesn’t show remorse for 9/11 is because he knows it was the best thing to have happen during his tenure in the White House – it’s almost like he planned it himself.
Without 9/11, Bush could very well have become a one-term president. There certainly would not have been the wars in Iraq or Afghanistan and the level of fear, paranoia and overt patriotism could never have reached post-9/11 heights.
No, Cheney needed 9/11, and so he sees no reason to show remorse or take responsibility for this failure, because to him it wasn’t a failure.
To learn more about the policy discussion in neo-conservative circles just prior to 9/11, read the Project for a New American Century policy report “Rebuilding America’s Defenses: Strategy, Forces and Resources For a New Century.”
Here’s a story in the Washington Post about Cheney’s latest case for torture.
CIA Special Review of Torture program May 7, 2004
Last Updated Sept. 15, 2009
On Sept. 9, 2009 another civil case has been brought against Erik Prince and his Blackwater corporate mercenary empire. In this case, like the others, Prince is accused of willfully murdering Iraqis for sport. It’s alleged that Prince hires people who will kill for him, essentially waging his own private crusade and murdering innocent Iraqis as part of his war against Islam.
On Aug. 12, 2009, Erik Prince’s lawyer Peter H. White of Mayer Brown LLP, filed a motion to change the defendants in the case from Erik Prince and his Blackwater corporate entities with the US government. The argument is based on the Westfall Act that prevents employees of the federal government from being sued for doing bad things while working for the government. It’s not clear that Blackwater will qualify as an employee of the government since it’s a contractor and not a person. Here’s an analysis of the Westfall Act and whether employees of the government can be held responsible for their actions. Of course, it’s not clear whether Blackwater is considered an employee.
Court Documents Available for Your Review
Please note that most of these are document collections, not just one document. Use the icons at the bottom of the viewer to examine the other associated documents. I tried to put the most important stuff first, but the exhibits and supporting documents are necessary for the complete picture.
Sept. 9, 2009 court documents related another civil case against Prince.
Aug. 12, 2009 motion to make the defendants in this case the US government rather than Prince and his corporations.
Here are some more documents related to the Aug. 12, 2009 court date. This is an updated version of Prince’s motion to dismiss which includes the expert testimony of HAIDER ALA HAMOUDI.
On Aug. 5, 2009 Prince’s lawyer filed this document with the court.
REPLY MEMORANDUM IN SUPPORT OF THEIR MOTION TO ENJOIN EXTRAJUDICIAL STATEMENTS REGARDING THIS LITIGATION
Here’s the original complaint filed against Erik Prince and his various companies. Also included are the civil cover sheet and a receipt for the $350 filing fee. The plaintiff is listed as the “Estate of Husain Salih Rabea.”
Here are the documents relating to the defendant’s motion to dismiss.
Here’s a memorandum supporting the motion to dismiss the case. Please remember to use the icons at the bottom of the document viewer to see all of the documents.
Here are the documents The Nation published regarding Monday’s declarations by John Doe #1 and John Doe #2. Here’s John Doe #1’s declaration.
Here’s John Doe #2’s declaration.
Update: The judge has ruled against Erik Prince’s motion to stop the plaintiffs’ from speaking about this case publicly.
According to court documents filed by Peter H. White – the lawyer representing Erik Prince and Blackwater - he continues to push the argument that the plaintiffs’ lawyer should shut up.
The campaign by plaintiffs’ counsel to try this case in the media, and the resulting prejudicial impact on potential jurors, continues apace: in just the 16 days since the filing of defendants’ motion.
White claims Susan L. Burke, the plaintiffs’ lawyer, is trying to try this case in the court of public opinion, with the help of The Nation.
Moreover, the conduct of plaintiffs’ counsel here exhibits precisely the sort of “collaboration between counsel and the press” that the Supreme Court described as “highly censurable and worthy of disciplinary measures” in Gentile. The article in The Nation entitled “Blackwater Seeks Gag Order,” for example, relies almost exclusively on commentary by plaintiffs’ counsel for its one-sided analysis of the motion to seal the WPPS contracts and of this motion by defendants to prohibit extrajudicial statements.
This motion to put a lid on the plaintiff is the latest document filed in this case, you can view it here.
In a declaration under the penalty of purjury, a former employee of Erik Prince’s Blackwater defense contracting firm said Prince “views himself as a Christian crusader tasked with eliminating Muslims and the Islamic faith from the globe.”
The accuser, only known as John Doe #2 in court documents because he claims he has been threatened with “death and violence” by managers of Prince’s company, wrote that “Prince intentionally deployed to Iraq certain men who shared his vision of Chrisian supremacy, knowing and wanting these men to take every available opportunity to murder Iraqis. Many of these men used call signs based on the Knights of the Templar, the warriors who fought the Crusades.”
This mention of the Knights Templar is an interesting one because it shifts the focus of Iraq from a quest for oil to that of a holy war. Remember when Pres. Bush got laughs for referring to the “war on terror” as a “crusade.” And this isn’t the only time Prince and his company Blackwater have been linked, albeit tenuously, with these shadow elements of the Catholic church and Christian fundamentalists.
The European Parliament published a report by Giovanni Claudio Fava, a Socialist Group legislator, claiming that there are connections between Blackwater and Malta. Malta is where the Knights of Malta, another right-wing element of the Catholic Church similar to the Knights Templar, once lived and still maintain control of Fort St. Angelo.
The Nation’s Jeremy Scahill has also written about connections between Prince, Malta and Pres. Bush’s rendition program in which terrorist suspects were sent to other countries for the purpose of torture. The program, according to Scahill was run by Cofer Black, who is allegedly a Knight of Malta himself and used Malta in the rendition program.
Black is the current vice chairman for Blackwater. At the time of the Sept. 11, 2001 terrorist attacks in New York and Washington, DC, Black was director of the CIA’s Counterterrorist Center.
According to a referenced Wikipedia entry:
[Black] was the United States Department of State coordinator for counterterrorism with the rank of ambassador at large from December 2002 to November 2004. After leaving public service, Black became chairman of the privately owned intelligence gathering company Total Intelligence Solutions, Inc., as well as vice chairman for Xe.
Xe is the current name of Blackwater and Total Intelligence Solutions has been dubbed as Prince’s private CIA.
But all of this “evidence” is largely hearsay and circumstantial at best. The reason for this could be that a common thread between the Knights Templare, the Knights of Malta and Blackwater is that there appears to be a concerted effort to confuse and obfiscate exactly what these groups are doing, or whether they’re even separate entities.
One tactic Prince employs to confuse people is setting up several supposedly different corporate entities. According John Doe #2, “[T]he various Price companies did not observe any corporate formalities or otherwise operate any of the Prince companies as independent entities. Instead, the Prince companies all operated as a single company.”
One of those companies is Greystone Limited headquartered in Barbados where Prince can avoid paying taxes and government scrutiny. The Virginia Pilot published a story last month stating that Greystone was operating in Iraq working for the International Republican Institute. The IRI is funded by the US government. After the slaughter of innocent Iraqis on Sept. 16, 2007 in Baghdad’s Nisoor Square by Blackwater employees, according to a court case filed against Blackwater, Blackwater was banned from operating in Iraq by the Iraqi government. And when Blackwater’s contract expired earlier this year, it was not renewed by the US State department, yet, Blackwater, under the name of Greystone Limited still operates in Iraq today.
There’s no definitive proof that Prince, Bush, Knights Templar or the Knights of Malta are conspiring to wage a modern-day crusade, but there’s something going on here, and it’s certainly worth an intensive investigation by the Dept. of Justice. This might be happening, as court documents trickle out of the US District Court in Virginia indicate. However, it’s illegal for the Dept. of Justice to speak about whether there even is an investigation, so I guess we’ll have to wait and see.
The US District court has consolidated five cases against Prince and his various companies into one. The cases accuse Prince of murder, conspiracy, gun smuggling, child prostitution, war crimes and waging a crusade against Islam for the purpose of global Christian supremacy. Tomorrow there’s a court date scheduled, so stay tuned, this could get really interesting really quick.
More information
- I’ve created a page containing an archive of court documents relating to the cases against Prince here.
- You can purchase Jeremy Scahill’s book “Blackwater: The Rise of the World’s Most Powerful Mercenary Army” here from Amazon.
- An interesting tidbit about the Knights of Malta is that they’ve have been given observer status by the United Nations under the entity called the Sovereign Military Order of Malta. The Sovereign Military Order of Malta is based in Rome, Italy and has diplomat relations with about 100 countries, but not the US.
- Blackwater Wiki
- Knights Templar Wiki
- Knights of Malta Wiki
Photos of Erik Price, Cofer Black and the Xe logo. Source: Wikipedia.org
Here’s a video by The Nation’s Jeremy Scahill explaining how Bush and Erik Prince, the owner of Blackwater, were working together in Iraq to wage a 21st century crusade against Islam. The video is called “Blackwater: Shadow Army.” You can watch it here.
Scahill also documents in his book “Blackwater: The Rise of the World’s Most Powerful Mercenary Army” compelling connections between Prince and shadow elements of the Catholic church such as the Knights of Malta. The Knights of Malta evidently were key players in the original 11th century crusades and supposedly they only answer to the Pope.
Now if we assume that Scahill is correct in his assertion that Bush and Prince were working together, using the “war on terror” as a conduit to wage a modern-day crusade with Prince’s shadow army of mercenaries killing Muslims at will for the purpose of total Christian rule of the planet, what’s Obama’s excuse? Why is Blackwater still operating in Iraq, despite the fact that their contract was not renewed?
Perhaps Obama has allowed Blackwater to continue to operate in Iraq because he too is aligned with Opus Dei Catholic soldiers-of-doom analogous to a character from David Brown’s “The Da Vinci Code.”
Unfortunately I don’t have access to Obama, so I can’t ask him that question, perhaps someone in the White House press corps will, but something tells me I doubt it.
With all the allegations of murder, tax evasion and charges of war crimes flying at Prince and his company, it’s surprising that Obama keeps paying him to put boots on the ground in Iraq, but he does.
Scahill’s most recent story about Blackwater court case in the US District Court in Virginia
Here’s the latest on The Center for Constitutional Rights’ case against Prince and Blackwater.
Wikipedia on Blackwater some of the information here is sketchy.
The Knight of Malta Wikipedia page
Here’s the video of Bush getting laughs for calling the “war on terror” a “crusade”
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