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Project Paperclip: Dark side of the Moon
2005-11-21, BBC News
http://news.bbc.co.uk/2/hi/uk_news/magazine/4443934.stm

Sixty years ago the US hired Nazi scientists to lead pioneering projects, such as the race to conquer space. These men provided the US with cutting-edge technology which still leads the way today, but at a cost. Major-General Hugh Knerr, deputy commander of the US Air Force in Europe, wrote: "Occupation of German scientific and industrial establishments has revealed the fact that we have been alarmingly backward in many fields of research. "If we do not take the opportunity to seize the apparatus and the brains that developed it...we will remain several years behind." Thus began Project Paperclip, the US operation which saw von Braun and more than 700 others spirited out of Germany from under the noses of the US's allies. Its aim was simple: "To exploit German scientists for American research and to deny these intellectual resources to the Soviet Union." President Truman authorised Paperclip in August 1945 and, on 18 November, the first Germans reached America. All of these men were cleared to work for the US, their alleged crimes covered up and their backgrounds bleached by a military which saw winning the Cold War, and not upholding justice, as its first priority.

Rove leak is just part of larger scandal
2005-07-15, Christian Science Monitor
http://www.csmonitor.com/2005/0715/p09s02-cods.html

The underlying issue in the Karl Rove controversy is not a leak, but a war and how America was misled into that war. In 2002 President Bush, having decided to invade Iraq, was casting about for a casus belli. The weapons of mass destruction theme was not yielding very much until a dubious Italian intelligence report ... provided reason to speculate that Iraq might be trying to buy so-called yellowcake uranium from the African country of Niger. the CIA sent Joseph Wilson, an old Africa hand, to Niger to investigate. Mr. Wilson spent eight days talking to everyone in Niger possibly involved and came back to report no sign of an Iraqi bid for uranium. Ignoring Wilson's report, Cheney talked on TV about Iraq's nuclear potential. And the president himself, in his 2003 State of the Union address no less, pronounced: "The British government has learned that Saddam Hussein recently sought significant quantities of uranium from Africa." Wilson directly challenged the administration with a July 6, 2003 New York Times op-ed headlined, "What I didn't find in Africa," and making clear his belief that the president deliberately manipulated intelligence in order to justify an invasion. Three days later, Bob Novak's column appeared giving Wilson's wife's name, Valerie Plame, and the fact she was an undercover CIA officer. Enough is known to surmise that the leaks of Rove, or others deputized by him, amounted to retaliation against someone who had the temerity to challenge the president of the United States. The role of Rove and associates added up to a small incident in a very large scandal - the effort to delude America into thinking it faced a threat dire enough to justify a war.

Halliburton operates in Iran despite sanctions
2005-03-07, MSNBC News
http://www.msnbc.msn.com/id/7119752

in January, Halliburton won a contract to drill at a huge Iranian gas field called Pars, which an Iranian government spokesman said "served the interests" of Iran. "I am baffled that any American company would want to have employees operating in Iran," says Sen. Susan Collins, R-Maine. "I would think they'd be ashamed." Halliburton says the operation — videotaped by NBC News — is entirely legal. It's run by a subsidiary called "Halliburton Products and Services Limited," based outside the U.S. In fact, the law allows foreign subsidiaries of U.S. corporations to do business in Iran under strict conditions. Other U.S. oil services companies, like Weatherford and Baker Hughes, also are in Iran. And foreign subsidiaries of NBC's parent company, General Electric, have sold equipment to Iran. For Halliburton to have done this legally, the foreign subsidiary operating in Iran must be independent of the main operation in Texas. Yet, when an NBC producer approached managers in Iran, he was sent to company officials in Dubai. But they said only Halliburton headquarters in Houston could talk about operations in Iran.

C.I.A. Said to Rebuff Congress on Nazi Files
2005-01-30, New York Times
http://www.nytimes.com/2005/01/30/international/europe/30nazis.html?ex=126482...

The Central Intelligence Agency is refusing to provide hundreds of thousands of pages of documents sought by a government working group under a 1998 law that requires full disclosure of classified records related to Nazi war criminals. Some made public last year showed a closer relationship between the United States government and Nazi war criminals than had previously been understood, including the C.I.A.'s recruitment of war criminal suspects or Nazi collaborators. For nearly three years, the C.I.A. has interpreted the 1998 law narrowly and rebuffed requests for additional records. The dispute has not previously been made public. The American government worked closely with Nazi war criminals and collaborators, allowing many of them to live in the United States after World War II. Historians who have studied the documents made public so far have said that at least five associates of the Nazi leader Adolf Eichmann, the architect of Hitler's campaign to exterminate Jews, had worked for the CIA. The records also indicate that the CIA tried to recruit two dozen more war criminals or Nazi collaborators. Among former Nazis who were given refuge in the United States was Wernher von Braun, the German scientist who developed the V-2 rocket in World War II for the Nazis and played a major role in the development of the American space program.

Note: Operation Paperclip involved secretly importing hundreds of Nazi scientists into the U.S. and providing them with aliases and influential work in U.S. government and intelligence services. Some of them were known experts in mind control techniques. For more reliable information, click here.

How Bush's grandfather helped Hitler's rise to power
2004-09-25, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/usa/story/0,12271,1312540,00.html

George Bush's grandfather, the late US senator Prescott Bush, was a director and shareholder of companies that profited from their involvement with the financial backers of Nazi Germany. Newly discovered files in the US National Archives [confirm] that a firm of which Prescott Bush was a director was involved with the financial architects of Nazism. His business dealings...continued until his company's assets were seized in 1942 under the Trading with the Enemy Act. There has been a steady internet chatter about the "Bush/Nazi" connection, much of it inaccurate and unfair. But the new documents, many of which were only declassified last year, show that even after America had entered the war...he worked for and profited from companies closely involved with the very German businesses that financed Hitler's rise to power. Remarkably, little of Bush's dealings with Germany has received public scrutiny, partly because of the secret status of the documentation involving him. But now [a] multibillion dollar legal action for damages by two Holocaust survivors against the Bush family, and the imminent publication of three books on the subject are threatening to make Prescott Bush's business history an uncomfortable issue for his grandson. Three sets of archives spell out Prescott Bush's involvement. All three are readily available, thanks to the efficient US archive system. Like his son, George, and grandson, George W, he went to Yale where he was, again like his descendants, a member of the secretive and influential Skull and Bones student society.

The Secret War
2002-10-27, WantToKnow.info/Los Angeles Times
http://www.wanttoknow.info/021027latimes

The Defense Department is dramatically expanding its 'black world' of covert operations. The Bush administration has turned to what the Pentagon calls the "black world" to press the war on terrorism and weapons of mass destruction. The increasingly dominant role of the military ... reflects the desire of Secretary of Defense Donald Rumsfeld to gain greater overall control of the war on terror. "Our task is to find and destroy the enemy before they strike us." Though covert action can bring quick results, because it is isolated from the normal review processes it can just as quickly bring mistakes and larger problems. The epicenter of the Pentagon's covert operations remains the North Carolina-based Joint Special Operations Command, often referred to as Delta Force. The super-secret command is still not officially acknowledged to exist. Rumsfeld's influential Defense Science Board ... recommends creation of a super-Intelligence Support Activity, an organization it dubs the Proactive, Preemptive Operations Group, (P2OG), to bring together CIA and military covert action, information warfare, intelligence, and cover and deception. This body would launch secret operations aimed at "stimulating reactions" among terrorists and states possessing weapons of mass destruction -- that is, for instance, prodding terrorist cells into action and exposing themselves to "quick-response" attacks by U.S. forces. The Air Force is designing its own Global Response Task Force ... capable of delivering a "worldwide attack within an hour."

Note: For an amazing exposé by a highly decorated U.S. general on the hidden reasons behind war, click here.

Live rats driven by remote control
2002-05-05, The Guardian (One of the U.K.'s leading newspapers)
http://www.guardian.co.uk/international/story/0,3604,708454,00.html

Scientists have turned living rats into remote-controlled, pleasure-driven robots which can be guided up ladders, through ruins and into minefields at the click of a laptop key. The project ... is funded by the US military's research arm. Animals have often been used by humans in combat and in search and rescue, but not under direct computer-to-brain electronic control. The advent of surgically altered roborats marks the crossing of a new boundary in the mechanisation, and potential militarisation, of nature. In 10 sessions the rats learned that if they ran forward and turned left or right on cue, they would be "rewarded" with a buzz of electrically delivered pleasure. Once trained they would move instantaneously and accurately as directed, for up to an hour at a time. The rats could be steered up ladders, along narrow ledges and down ramps, up trees, and into collapsed piles of concrete rubble. Roborats fitted with cameras or other sensors could be used as search and rescue aids. In theory, be put to some unpleasant uses, such as assassination. [For] surveillance ... you could apply this to birds ... if you could fit birds with sensors and cameras. Michael Reiss, professor of science education at London's Institute of Education and a leading bioethics thinker ... said he was uneasy about humankind "subverting the autonomy" of animals. "There is a part of me that is not entirely happy with the idea of our subverting a sentient animal's own aspirations and wish to lead a life of its own."

Note: Remember that secret military projects are almost always at least a decade in advance of anything you read in the media. For lots more on this little-known subject, click here.

Chemical Coup d'etat
2002-04-16, The Guardian (One of the U.K.'s leading newspapers)
http://www.guardian.co.uk/Archive/Article/0,4273,4394862,00.html

The US wants to depose the diplomat who could take away its pretext for war with Iraq. On Sunday, the US government will launch an international coup. It has been planned for a month. It will be executed quietly, and most of us won't know what is happening until it's too late. It is seeking to overthrow 60 years of multilateralism in favour of a global regime built on force. The coup begins with its attempt ... to unseat the man in charge of ridding the world of chemical weapons. If it succeeds, this will be the first time that the head of a multilateral agency will have been deposed in this manner. The coup will also shut down the peaceful options for dealing with the chemical weapons Iraq may possess, helping to ensure that war then becomes the only means of destroying them. The Organisation for the Prohibition of Chemical Weapons (OPCW) enforces the chemical weapons convention. Its director-general is a workaholic Brazilian diplomat called Jose Bustani. He has, arguably, done more in the past five years to promote world peace than anyone else on earth. His inspectors have overseen the destruction of 2 million chemical weapons and two-thirds of the world's chemical weapon facilities. In May 2000, as a tribute to his extraordinary record, Bustani was re-elected unanimously by the member states for a second five-year term. Last year Colin Powell wrote to him to thank him for his "very impressive" work. But now everything has changed. [But now] the man celebrated for his achievements has been denounced as an enemy of the people. In January, with no prior warning or explanation, the US state department asked the Brazilian government to recall him.

Note: The "coup" was successful. The New York Times, though reporting few of the details above, stated six days after the above article, "José M. Bustani ... was voted out of office today after refusing repeated demands by the United States that he step down because of his 'management style.'" For why this highly revealing story received no media coverage in the U.S., click here. For a top U.S. general's comments, click here.

Tsunami bomb - NZ's devastating war secret
1999-09-25, New Zealand Herald (New Zealand's leading newspaper)
http://www.nzherald.co.nz/section/story.cfm?c_id=1&objectid=14727

Top-secret wartime experiments were conducted off the coast of Auckland to perfect a tidal wave bomb, declassified files reveal. United States defence chiefs said that if the project had been completed before the end of the war it could have played a role as effective as that of the atom bomb. Details of the tsunami bomb, known as Project Seal, are contained in 53-year-old documents released by the Ministry of Foreign Affairs and Trade. Papers stamped "top secret" show the US and British military were eager for Seal to be developed in the post-war years too. The experiments involved laying a pattern of explosives underwater to create a tsunami. It is unclear what happened to Project Seal once the final report was forwarded to Wellington Defence Headquarters late in the 1940s. The bomb was never tested on a full scale. "Whether it could ever be resurrected ... Under some circumstances I think it could be devastating."

BBC uncovers lost Iraq billions
2008-06-10, BBC News
http://news.bbc.co.uk/2/hi/middle_east/7444083.stm

A BBC investigation estimates that around $23bn (£11.75bn) may have been lost, stolen or just not properly accounted for in Iraq. The BBC's Panorama programme has used US and Iraqi government sources to research how much some private contractors have profited from the conflict and rebuilding. A US gagging order is preventing discussion of the allegations. The order applies to 70 court cases against some of the top US companies. While President George W Bush remains in the White House, it is unlikely the gagging orders will be lifted. To date, no major US contractor faces trial for fraud or mismanagement in Iraq. Henry Waxman, who chairs the House committee on oversight and government reform, said: "It may well turn out to be the largest war profiteering in history." In the run-up to the invasion, one of the most senior officials in charge of procurement in the Pentagon objected to a contract potentially worth $7bn that was given to Halliburton, a Texan company which used to be run by Dick Cheney before he became vice-president. Only Halliburton got to bid. The search for the missing billions also led ... to a house in ... west London where Hazem Shalaan lived until he was appointed to the new Iraqi government as minister of defence in 2004. He and his associates siphoned an estimated $1.2bn out of the ministry. They bought old military equipment from Poland but claimed for top-class weapons. Meanwhile they diverted money into their own accounts. Judge Radhi al-Radhi of Iraq's Commission for Public Integrity investigated. He said: "I believe these people are criminals."

Note: For many other reports on war profiteering, click here.

Revealed: Secret plan to keep Iraq under US control
2008-06-05, The Independent (One of the U.K.'s leading newspapers)
http://www.independent.co.uk/news/world/middle-east/revealed-secret-plan-to-k...

A secret deal being negotiated in Baghdad would perpetuate the American military occupation of Iraq indefinitely, regardless of the outcome of the US presidential election in November. The terms of the impending deal, details of which have been leaked to The Independent, are likely to have an explosive political effect in Iraq. Iraqi officials fear that the accord, under which US troops would occupy permanent bases, conduct military operations, arrest Iraqis and enjoy immunity from Iraqi law, will destabilise Iraq's position in the Middle East and lay the basis for unending conflict in their country. But the accord also threatens to provoke a political crisis in the US. President Bush wants to push it through by the end of next month so he can declare a military victory and claim his 2003 invasion has been vindicated. But by perpetuating the US presence in Iraq, the long-term settlement would undercut pledges by the Democratic presidential nominee, Barack Obama, to withdraw US troops if he is elected president in November. The timing of the agreement would also boost the Republican candidate, John McCain. Under the terms of the new treaty, the Americans would retain the long-term use of more than 50 bases in Iraq. American negotiators are also demanding immunity from Iraqi law for US troops and contractors, and a free hand to carry out arrests and conduct military activities in Iraq without consulting the Baghdad government. The precise nature of the American demands has been kept secret until now.

US accused of holding terror suspects on prison ships
2008-06-02, The Guardian (One of the U.K.'s leading newspapers)
http://www.guardian.co.uk/world/2008/jun/02/usa.humanrights/

The United States is operating "floating prisons" to house those arrested in its war on terror, according to human rights lawyers, who claim there has been an attempt to conceal the numbers and whereabouts of detainees. Details of ships where detainees have been held and sites allegedly being used in countries across the world have been compiled as the debate over detention without trial intensifies on both sides of the Atlantic. Information about the operation of prison ships has emerged through a number of sources, including statements from the US military, the Council of Europe and related parliamentary bodies, and the testimonies of prisoners. The analysis, due to be published this year by the human rights organisation Reprieve, also claims there have been more than 200 new cases of rendition since 2006, when President George Bush declared that the practice had stopped. According to research carried out by Reprieve, the US may have used as many as 17 ships as "floating prisons" since 2001. Detainees are interrogated aboard the vessels and then rendered to other, often undisclosed, locations. Ships that are understood to have held prisoners include the USS Bataan and USS Peleliu. A further 15 ships are suspected of having operated around the British territory of Diego Garcia in the Indian Ocean, which has been used as a military base by the UK and the Americans. Clive Stafford Smith, Reprieve's legal director, said: "They choose ships to try to keep their misconduct as far as possible from the prying eyes of the media and lawyers. We will eventually reunite these ghost prisoners with their legal rights."

Note: For many other investigations of the reality of the "war on terror", click here.

Online warfare research outlined
2008-05-15, Washington Times
http://washingtontimes.com/apps/pbcs.dll/article?AID=/20080515/FOREIGN/586297...

Procurement documents released by the U.S. Air Force give a rare glimpse into Pentagon plans for developing an offensive cyber-war capacity that can infiltrate, steal data from and, if necessary, take down enemy information-technology networks. The Broad Area Announcement, posted ... by the Air Force Research Laboratory's Information Directorate, outlines a two-year, $11 million effort to develop capabilities to "access ... any remotely located open or closed computer information systems," lurk on them "completely undetected," "stealthily exfiltrate information" from them and ultimately "be able to affect computer information systems through Deceive, Deny, Disrupt, Degrade, Destroy (D5) effects." "Of interest," the announcement says, "are any and all techniques to enable user and/or root-level access to both fixed [and] mobile computing platforms ... [and] methodologies to enable access to any and all operating systems, patch levels, applications and hardware." The announcement is the latest stage in the Air Force's effort to develop a cyber-war capability and establish itself as the service that delivers U.S. military power in cyberspace. Last year, the Air Force announced it was setting up a Cyberspace Command ... and was developing military doctrine for the prosecution of cyber-war operations. The developments highlight the murky legal territory on which the cyber-wars of the future will be fought. More important, because of the difficulties in identifying attackers and immediately quantifying damage from a cyber-attack, it can be hard to determine when such attacks constitute an act of war as opposed to crime or even vandalism.

Behind TV Analysts, Pentagon’s Hidden Hand
2008-04-20, New York Times
http://www.nytimes.com/2008/04/20/washington/20generals.html?ex=1366344000&en...

In the summer of 2005, the Bush administration confronted a fresh wave of criticism over Guantánamo Bay. The detention center had just been branded “the gulag of our times” by Amnesty International, there were new allegations of abuse from United Nations human rights experts and calls were mounting for its closure. The administration’s communications experts responded swiftly. Early one Friday morning, they put a group of retired military officers on one of the jets normally used by Vice President Dick Cheney and flew them to Cuba for a carefully orchestrated tour of Guantánamo. To the public, these men are members of a familiar fraternity, presented tens of thousands of times on television and radio as “military analysts” whose long service has equipped them to give authoritative and unfettered judgments about the most pressing issues of the post-Sept. 11 world. Hidden behind that appearance of objectivity, though, is a Pentagon information apparatus that has used those analysts in a campaign to generate favorable news coverage of the administration’s wartime performance. The effort, which began with the buildup to the Iraq war and continues to this day, has sought to exploit ideological and military allegiances, and also a powerful financial dynamic: Most of the analysts have ties to military contractors vested in the very war policies they are asked to assess on air. Those business relationships are hardly ever disclosed to the viewers. But collectively, the men on the plane and several dozen other military analysts represent more than 150 military contractors either as lobbyists, senior executives, board members or consultants.

Note: This excellent article should be read in its entirety. For a related video presentation, click here. For an analysis, click here.

Economists Debate Link Between War, Credit Crisis
2008-04-15, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2008/04/14/AR20080414026...

For House Speaker Nancy Pelosi, the connection between the Iraq conflict and the U.S. economic downturn is simple: "The president has taken us into a failed war," [she] said recently. "He's taken us deeply into debt, and that debt is taking us into recession." Joseph E. Stiglitz, a Nobel Prize-winning economist who wrote the new book The Three Trillion Dollar War, contends that the connection is real. Even with a growing energy demand from China, the United States and elsewhere, oil traders anticipated before the war that the price of oil would remain about $25 a barrel. Instead, it has soared to more than $100 a barrel. Iraqi oil production has not risen with demand, in part because investment in the Middle East has been stunted by war-related unrest. Those price increases are self-perpetuating, Stiglitz argues. Oil-rich Persian Gulf states are so awash in money that they are not sure what to do with it all. That cash, through state-owned sovereign wealth funds, has flowed into stocks, bonds and other investments, creating incentives for lenders to offer low-interest loans, many of which have now gone sour. But that is only one factor, by Stiglitz's accounting. The federal government has sunk deeply into debt, first with tax cuts, then with accelerating war expenditures that have easily topped half a trillion dollars. So the Federal Reserve Board used low interest rates and the free flow of money to keep the economy growing. Cheap credit sparked rash loans, a housing bubble and the current crisis. "The war played a very important role," Stiglitz said. The analysis is politically powerful because people believe it. A CNN poll last month found that 71 percent of Americans say government spending in Iraq is a factor in the economic downturn.

Note: For a powerful personal account of the economic underpinnings of modern war by a US Marine Corps general, click here.

Inside the Black Budget
2008-04-01, New York Times
http://www.nytimes.com/2008/04/01/science/01patc.html?ex=1364702400&en=f406ed...

Skulls. Black cats. A naked woman riding a killer whale. Snakes. Swords. Occult symbols. A wizard with a staff that shoots lightning bolts. A dragon holding the Earth in its claws. No, this is not the fantasy world of a 12-year-old boy. It is ... part of the hidden reality behind the Pentagon’s classified, or “black,” budget that delivers billions of dollars to stealthy armies of high-tech warriors. [A new] book offers a glimpse of this dark world through a revealing lens — patches — the kind worn on military uniforms. Trevor Paglen, an artist and photographer finishing his Ph.D. in geography at the University of California, Berkeley, has managed to document some of this hidden world. The 75 patches he has assembled reveal a bizarre mix of high and low culture. “Oderint Dum Metuant,” reads a patch for an Air Force program that mines spy satellite images for battlefield intelligence, according to Mr. Paglen, who identifies the saying as from Caligula, the first-century Roman emperor famed for his depravity. It translates “Let them hate so long as they fear.” Wizards appear on several patches. The one hurling lightning bolts comes from a secret Air Force base at Groom Lake, northwest of Las Vegas in a secluded valley. Mr. Paglen identifies its five clustered stars and one separate star as a veiled reference to Area 51, where the government tests advanced aircraft and, U.F.O. buffs say, captured alien spaceships. What sparked his interest, Mr. Paglen recalled, were Vice President Dick Cheney’s remarks as the Pentagon and World Trade Center smoldered. “We’ve got to spend time in the shadows,” Mr. Cheney said. “It’s going to be vital for us to use any means at our disposal, basically, to achieve our objective.”

Note: The webpage at the link above includes color photos of several of these revealing patches. To read reviews or purchase the book by Trevor Paglen, I Could Tell You but Then You Would Have to Be Destroyed by Me, click here.

Fight Violence with Nonviolence
2008-03-27, Christian Science Monitor
http://www.csmonitor.com/2008/0327/p09s01-coop.html

Over the past 25 years nonviolent peacekeepers have been going into zones of sometimes intense conflict with the aim of bringing a measure of peace, protection, and sanity to life there. Rather than use threat or force, unarmed peacekeepers deploy strategies of protective accompaniment, moral and/or witnessing "presence," monitoring election campaigns, creating neutral safe spaces, and in extreme cases putting themselves physically between hostile parties. Civilian unarmed peacekeeping has had dramatic, small-scale, quiet, and unglamorous successes: rescuing child soldiers, protecting the lives of key human rights workers and of whole villages, averting potentially explosive violence, and generally raising the level of security felt by citizens in many a tense community. Recently a village on the island of Mindanao in the Philippines was under threat by two armed groups who had come within 200 meters of each other. The village elders called for help from the Nonviolent Peaceforce stationed there, who intervened and by communicating with all sides persuaded the armed group to back away. Thanks to mediation, no violence erupted, no lives were lost. Why haven't you heard about this exciting work? Because it is terribly underfunded, for one thing. There is also a prevailing prejudice that only governments or armed forces – including those of the United Nations – have the responsibility or means to contain conflict. But the biggest obstacle by far is the widespread – and rarely examined – belief that political power grows out of the barrel of a gun. It is the belief that there is only one kind of power; threat power, which in the end can be relied upon to get others to change their minds or, failing that, at least their actions. That may change. The new global norm of "Responsibility to Protect" (R2P) should inspire the use of civil society and nonviolent means.

Top Iraq contractor skirts US taxes offshore
2008-03-06, Boston Globe
http://www.boston.com/news/world/articles/2008/03/06/top_iraq_contractor_skir...

Kellogg Brown & Root, the nation's top Iraq war contractor and until last year a subsidiary of Halliburton Corp., has avoided paying hundreds of millions of dollars in federal Medicare and Social Security taxes by hiring workers through shell companies based in [the Cayman Islands]. More than 21,000 people working for KBR in Iraq - including about 10,500 Americans - are listed as employees of two companies that exist in a computer file on the fourth floor of a building on a palm-studded boulevard here in the Caribbean. Neither company has an office or phone number in the Cayman Islands. The Defense Department has known since at least 2004 that KBR was avoiding taxes by declaring its American workers as employees of Cayman Islands shell companies. With an estimated $16 billion in contracts, KBR is by far the largest contractor in Iraq, with eight times the work of its nearest competitor. The no-bid contract it received in 2002 to rebuild Iraq's oil infrastructure and a multibillion-dollar contract to provide support services to troops have long drawn scrutiny because Vice President Dick Cheney was Halliburton's chief executive from 1995 until he joined the Republican ticket with President Bush in 2000. The largest of the Cayman Islands shell companies - called Service Employers International Inc., which is now listed as having more than 20,000 workers in Iraq, according to KBR - was created two years before Cheney became Halliburton's chief executive. But a second Cayman Islands company called Overseas Administrative Services, which now is listed as the employer of 1,020 mostly managerial workers in Iraq, was established two months after Cheney's appointment.

Note: To read a powerful personal statement about the reality of war profiteering by a highly decorated Marine Corps general, click here.

Fraud Crackdown Comes With a Loophole
2008-02-13, ABC News/Associated Press
http://abcnews.go.com/Politics/wireStory?id=4279612

A Bush administration plan to crack down on contract fraud has a multibillion-dollar loophole: The proposal to force companies to report abuse of taxpayer money will not apply to work overseas, including projects to secure and rebuild Iraq and Afghanistan. For decades, contractors have been asked to report internal fraud or overpayment on government-funded projects. Compliance has been voluntary, and over the past 15 years the number of company-reported fraud cases has declined steadily. Now, the Justice Department wants to force companies to notify the government if they find evidence of contract abuse of more than $5 million. Failure to comply could make a company ineligible for future government work. The proposal, now in the final approval stages, specifically exempts "contracts to be performed outside the United States," according to a notice published last month in the Federal Register. Critics including the watchdog group Taxpayers Against Fraud said the overseas exemption raises suspicions. "I hate to sound cynical, but what lobbyist working for a contractor in Iraq wanted this get-out-of-jail card?" asked Patrick Burns, spokesman for the government watchdog group. "I'm not saying that's the way it went - I'm just suggesting that's the most logical line to draw. I think somebody's got some explaining to do." After the invasions of Afghanistan and Iraq, the U.S. poured billions of dollars into projects [in] those nations. With the money came the fraud. At least $14 million has been lost in bribes alone over the past five years in Iraq and Afghanistan. An estimated $350 billion is spent on government contracts annually, according to the White House Office of Federal Procurement Policy.

Note: For many additional reports from reliable sources on war profiteering, click here.

From the Desk of Donald Rumsfeld . . .
2007-11-01, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/31/AR20071031030...

In a series of internal musings and memos to his staff, then-Defense Secretary Donald H. Rumsfeld argued that Muslims avoid "physical labor" and wrote of the need to "keep elevating the threat," "link Iraq to Iran" and develop "bumper sticker statements" to rally public support for an increasingly unpopular war. The memos [reveal] a defense secretary disdainful of media criticism and driven to reshape public opinion of the Iraq war. In a 2004 memo on the deteriorating situation in Iraq, Rumsfeld concluded that the challenges there are "not unusual." Pessimistic news reports ... simply result from the wrong standards being applied, he wrote in one of the memos obtained by The Washington Post. Under siege in April 2006, when a series of retired generals denounced him and called for his resignation in newspaper op-ed pieces, Rumsfeld produced a memo after a conference call with military analysts. "Talk about Somalia, the Philippines, etc. Make the American people realize they are surrounded in the world by violent extremists," he wrote. People will "rally" to sacrifice, he noted after the meeting. "They are looking for leadership. Sacrifice = Victory." The meeting also led Rumsfeld to write that he needed a team to help him "go out and push people back, rather than simply defending" Iraq policy and strategy. "I am always on the defense. They say I do it well, but you can't win on the defense," he wrote. "We can't just keep taking hits." Rumsfeld suggested that the public should know that there will be no "terminal event" in the fight against terrorism like the signing ceremony on the USS Missouri when Japan surrendered to end World War II. "It is going to be a long war," he wrote. In one of his longer ruminations, in May 2004, Rumsfeld considered whether to redefine the terrorism fight as a "worldwide insurgency." The goal of the enemy, he wrote, is to "end the state system, using terrorism, to drive the non-radicals from the world."

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