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This broadcast was recorded in one, 60-minute segment.
Introduction: Much has been said about Donald Trump’s nomination of Judge Brett Kavanaugh to become a Supreme Court justice, replacing Anthony Kennnedy.
In this program, we highlight extensive networking between the Trump and Kennedy families and, in turn, some apparent “deep networking” between some of the individuals in the Trump/Kennedy nexus and institutions linked to key elements of the remarkable and deadly Bormann flight capital network.
Deutsche Bank and the shadow of the I.G. Farben chemical complex figure into the latter part of this equation.
The connections between the family of Anthony Kennedy and the Trump milieu run deep. Anthony Kennedy’s son Justin was Trump’s banker at Deutsche Bank. In FTR #919, we analyzed a New York Times article highlighting Donald Trump’s altogether opaque real estate developments and evidence that those projects had significant links to elements of the Bormann capital network.
In that program we set forth the primary role of Deutsche Bank in financing Trump’s real estate projects.
” . . . While many big banks have shunned him, Deutsche Bank AG has been a steadfast financial backer of the Republican presidential candidate’s business interests. Since 1998, the bank has led or participated in loans of at least $2.5 billion to companies affiliated with Mr. Trump, according to a Wall Street Journal analysis of public records and people familiar with the matter. That doesn’t include at least another $1 billion in loan commitments that Deutsche Bank made to Trump-affiliated entities. The long-standing connection makes Frankfurt-based Deutsche Bank, which has a large U.S. operation and has been grappling with reputational problems and an almost 50% stock-price decline, the financial institution with probably the strongest ties to the controversial New York businessman. . . .”
The fact that Deutsche Bank is the primary financial backer of “Trump Incorporated” is of primary importance. The bank is central to the Bormann capital network.
The connections between the family of Anthony Kennedy and the Trump milieu run deep. Anthony Kennedy’s son Justin was Trump’s banker at Deutsche Bank.
Furthermore, jurists who clerked for Anthony Kennedy figure prominently in Trump’s judicial appointments:
- ” . . . . He [Trump] picked Justice Neil M. Gorsuch, who had served as a law clerk to Justice Kennedy, to fill Justice Scalia’s seat. . . .”
- ” . . . . Then, after Justice Gorsuch’s nomination was announced, a White House official singled out two candidates for the next Supreme Court vacancy: Judge Brett M. Kavanaugh of the United States Court of Appeals for the District of Columbia Circuit and Judge Raymond M. Kethledge of the United States Court of Appeals for the Sixth Circuit, in Cincinnati. The two judges had something in common: They had both clerked for Justice Kennedy. . . .”
- ” . . . . In the meantime, as the White House turned to stocking the lower courts, it did not overlook Justice Kennedy’s clerks. Mr. Trump nominated three of them to federal appeals courts: Judges Stephanos Bibas and Michael Scudder, both of whom have been confirmed, and Eric Murphy, the Ohio solicitor general, whom Mr. Trump nominated to the Sixth Circuit this month. . . .”
- ” . . . . Justice Kennedy’s son, Justin . . . . spent more than a decade at Deutsche Bank, eventually rising to become the bank’s global head of real estate capital markets, and he worked closely with Mr. Trump when he was a real estate developer, according to two people with knowledge of his role. During Mr. Kennedy’s tenure, Deutsche Bank became Mr. Trump’s most important lender, dispensing well over $1 billion in loans to him for the renovation and construction of skyscrapers in New York and Chicago at a time other mainstream banks were wary of doing business with him because of his troubled business history. . . .”
After Kennedy left Deutsche Bank in 2009 he went on to become co-CEO LNR Property LLC. LNR Property saved Jared Kushner’s midtown Manhattan property in 2011:
- ” . . . . from 2010–2013 Justin Kennedy was the co-CEO of LNR Property LLC with Tobin Cobb. . . .”
- ” . . . . According the New York Times, in 2007 Kushner Companies purchased ‘an aluminum-clad office tower in Midtown Manhattan, for a record price of $1.8 billion.’ At the time the NYT wrote that this deal was ‘considered a classic example of reckless underwriting. The transaction was so highly leveraged that the cash flow from rents amounted to only 65 percent of the debt service.’ . . .”
- ” . . . Who came to the rescue? None other than LNR Property, the company whose CEO at the time was Justin Kennedy. According to the NYT and the Real Deal, Mr. Kushner and LNR ‘reached a possible agreement with LNR Property, a firm specializing in restructuring troubled debt and which oversees the mortgage, that would allow him to retain control of the tower by modifying the terms of the $1.2 billion mortgage tied to the office portion of the building.’ . . .”
The links between TrumpWorld and Anthony Kennedy’s sons is deeper still. Kennedy’s other son Gregory, has long-standing ties to Trump Silicon Valley adviser Peter Thiel, whom we first analyzed in FTR #718.
” . . . . . . . . Kennedy’s seat, meantime, seemed destined to go to Kavanaugh, thanks in part to the glowing review of Kennedy, whose son, Justin, knows Donald Trump Jr. through New York real estate circles, and whose other adult child has connections to Trump World via the president’s 2016 Silicon Valley adviser Peter Thiel, most recently when the Kennedy firm Disruptive Technology Advisers worked with Thiel’s Palantir Technologies. . . .”
Gregory Kennedy’s DTA has an unusually close relationship with Palantir, a company that has helped the Trump administration.
Kennedy’s DTA has other personal connections to Palantir. Alex Fishman and Alex Davis, two other DTA founders, “enjoyed a very close relationship” with Palantir co-founder Alex Karp, according to the lawsuit.
It should be noted that the alleged secrecy with which Palantir treats its operating and investing information is characteristic of Bormann organizations. A closeted, insiders-only operating ethic serves the need for this consummately powerful organization to maintain a relatively low profile, even as it gains power, influence and wealth.
” . . . . Yet Palantir — whose stock changes hands only through private trades — goes to great lengths to keep any detailed information about its business private. . . .”
A lawsuit by Palantir investor KT4 Partners alleges that Palantir is illegally blocking investors from selling shares in the company and that Kennedy’s Disruptive Technology Advisors (DTA) is a key partner and beneficiary of this strategy.
KT4 claims that when it tried to sell its shares of Palantir to a third-party, Palantir would have DTA contact the third-party and convince them to have Palantir sells them the shares directly instead. DTA would then collect a commission.
The central dynamic in the allegations of plaintiff (and Palantir investor) KT4 is set forth as follows: ” . . . . But remarkably, KT4 claims that when Palantir receives information from an investor about a planned sale, it uses that information to contact the buyer and persuade them instead to buy shares directly from the company or from certain Palantir insiders. One particular broker, Disruptive Technology Advisers, or DTA, repeatedly gets commissions from these sales, even when it ‘performed no legitimate work,’ KT4 claims. KT4 says it experienced interference by Palantir when it tried to sell shares to Highbridge Capital Management, a hedge fund that was owned by JPMorgan Chase, in May 2015. After KT4 notified Palantir of the planned sale, Palantir turned around and instructed DTA to ‘take the opportunity, on Palantir’s behalf,‘and arrange a sale from Palantir to Highbridge instead, according to the lawsuit. . . .”
In FTR #946, we examined Cambridge Analytica, its Trump and Steve Bannon-linked tech firm that harvested Facebook data on behalf of the Trump campaign.
Peter Thiel’s Palantir was apparently deeply involved with Cambridge Analytica’s gaming of personal data harvested from Facebook in order to engineer an electoral victory for Trump, setting the GOP campaign to control the Supreme Court in a deeper, broader context.
Thiel was an early investor in Facebook, at one point was its largest shareholder and is still one of its largest shareholders. ” . . . . It was a Palantir employee in London, working closely with the data scientists building Cambridge’s psychological profiling technology, who suggested the scientists create their own app — a mobile-phone-based personality quiz — to gain access to Facebook users’ friend networks, according to documents obtained by The New York Times. The revelations pulled Palantir — co-founded by the wealthy libertarian Peter Thiel — into the furor surrounding Cambridge, which improperly obtained Facebook data to build analytical tools it deployed on behalf of Donald J. Trump and other Republican candidates in 2016. Mr. Thiel, a supporter of President Trump, serves on the board at Facebook. ‘There were senior Palantir employees that were also working on the Facebook data,’ said Christopher Wylie, a data expert and Cambridge Analytica co-founder, in testimony before British lawmakers on Tuesday. . . . The connections between Palantir and Cambridge Analytica were thrust into the spotlight by Mr. Wylie’s testimony on Tuesday. Both companies are linked to tech-driven billionaires who backed Mr. Trump’s campaign: Cambridge is chiefly owned by Robert Mercer, the computer scientist and hedge fund magnate, while Palantir was co-founded in 2003 by Mr. Thiel, who was an initial investor in Facebook. . . .”
Program Highlights Include:
- Review of Peter Thiel’s high regard for Carl Schmitt: “. . . . a Nazi and the Third Reich’s preeminent legal theorist. For Thiel, Schmitt is an inspiring throwback to a pre-Enlightenment age, who exalts struggle and insists that the discovery of enemies is the foundation of politics. . .”
- Review of Peter Thiel’s early legal experience with Sullivan & Cromwell, the Dulles law firm.
- A recounting of the role of John Foster Dulles and Sullivan & Cromwell’s roles in the formation of I.G. Farben.
- Review of Thiel’s German heritage and his father’s probable role with one of the I.G. successor companies.
1a. The connections between the family of Anthony Kennedy and the Trump milieu run deep. Anthony Kennedy’s son Justin was Trump’s banker at Deutsche Bank. In FTR #919, we analyzed a New York Times article highlighting Donald Trump’s altogether opaque real estate developments and evidence that those projects had significant links to elements of the Bormann capital network.
In that program we set forth the primary role of Deutsche Bank in financing Trump’s real estate projects.
” . . . While many big banks have shunned him, Deutsche Bank AG has been a steadfast financial backer of the Republican presidential candidate’s business interests. Since 1998, the bank has led or participated in loans of at least $2.5 billion to companies affiliated with Mr. Trump, according to a Wall Street Journal analysis of public records and people familiar with the matter. That doesn’t include at least another $1 billion in loan commitments that Deutsche Bank made to Trump-affiliated entities. The long-standing connection makes Frankfurt-based Deutsche Bank, which has a large U.S. operation and has been grappling with reputational problems and an almost 50% stock-price decline, the financial institution with probably the strongest ties to the controversial New York businessman. . . .”
The fact that Deutsche Bank is the primary financial backer of “Trump Incorporated” is of primary importance. The bank is central to the Bormann capital network.
“. . . . When Bormann gave the order for his representatives to resume purchases of American corporate stocks, it was usually done through the neutral countries of Switzerland and Argentina. From foreign exchange funds on deposit in Swiss banks and in Deutsche Sudamerikanishe Bank, the Buenos Aires branch of Deutsche Bank, large demand deposits were placed in the principal money-center banks of New York City; National City (now Citibank), Chase (now Chase Manhattan N.A.), Manufacturers and Hanover (now manufacturers Hanover Trust), Morgan Guaranty, and Irving Trust. Such deposits are interest-free and the banks can invest this money as they wish, thus turning tidy profits for themselves. In return, they provide reasonable services such as the purchase of stocks and transfer or payment of money on demand by customers of Deutsche bank such as representatives of the Bormann business organizations and and Martin Bormann himself, who has demand accounts in three New York City banks. They continue to do so. The German investment in American corporations from these sources exceeded $5 billion and made the Bormann economic structure a web of power and influence. The two German-owned banks of Spain, Banco Aleman Transatlantico (now named Banco Comercial Transatlantico), and Banco Germanico de la America del Sur, S.A., a subsidiary of Deutsche Bank served to channel German money from Spain to South America, where further investments were made. . . .”
1b. Bormann’s FBI file revealed that he had been banking under his own name in New York for some time.
. . . . The file revealed that he had been banking under his own name from his office in Germany in Deutsche Bank of Buenos Aires since 1941; that he held one joint account with the Argentinian dictator Juan Peron, and on August 4, 5 and 14, 1967, had written checks on demand accounts in first National City Bank (Overseas Division) of New York, The Chase Manhattan Bank, and Manufacturers Hanover Trust Co., all cleared through Deutsche Bank of Buenos Aires. . . .
1c. The connections between the family of Anthony Kennedy and the Trump milieu run deep. Anthony Kennedy’s son Justin was Trump’s banker at Deutsche Bank.
Furthermore, jurists who clerked for Anthony Kennedy figure prominently in Trump’s judicial appointments:
- ” . . . . He [Trump] picked Justice Neil M. Gorsuch, who had served as a law clerk to Justice Kennedy, to fill Justice Scalia’s seat. . . .”
- ” . . . . Then, after Justice Gorsuch’s nomination was announced, a White House official singled out two candidates for the next Supreme Court vacancy: Judge Brett M. Kavanaugh of the United States Court of Appeals for the District of Columbia Circuit and Judge Raymond M. Kethledge of the United States Court of Appeals for the Sixth Circuit, in Cincinnati. The two judges had something in common: They had both clerked for Justice Kennedy. . . .”
- ” . . . . In the meantime, as the White House turned to stocking the lower courts, it did not overlook Justice Kennedy’s clerks. Mr. Trump nominated three of them to federal appeals courts: Judges Stephanos Bibas and Michael Scudder, both of whom have been confirmed, and Eric Murphy, the Ohio solicitor general, whom Mr. Trump nominated to the Sixth Circuit this month. . . .”
- ” . . . . Justice Kennedy’s son, Justin . . . . spent more than a decade at Deutsche Bank, eventually rising to become the bank’s global head of real estate capital markets, and he worked closely with Mr. Trump when he was a real estate developer, according to two people with knowledge of his role. During Mr. Kennedy’s tenure, Deutsche Bank became Mr. Trump’s most important lender, dispensing well over $1 billion in loans to him for the renovation and construction of skyscrapers in New York and Chicago at a time other mainstream banks were wary of doing business with him because of his troubled business history. . . .”
President Trump singled him out for praise even while attacking other members of the Supreme Court. The White House nominated people close to him to important judicial posts. And members of the Trump family forged personal connections.
Their goal was to assure Justice Anthony M. Kennedy that his judicial legacy would be in good hands should he step down at the end of the court’s term that ended this week, as he was rumored to be considering. Allies of the White House were more blunt, warning the 81-year-old justice that time was of the essence. There was no telling, they said, what would happen if Democrats gained control of the Senate after the November elections and had the power to block the president’s choice as his successor. . . .
. . . .When Mr. Trump took office last year, he already had a Supreme Court vacancy to fill, the one created by the 2016 death of Justice Antonin Scalia. But Mr. Trump dearly wanted a second vacancy, one that could transform the court for a generation or more. So he used the first opening to help create the second one. He picked Justice Neil M. Gorsuch, who had served as a law clerk to Justice Kennedy, to fill Justice Scalia’s seat. . . .
. . . .Then, after Justice Gorsuch’s nomination was announced, a White House official singled out two candidates for the next Supreme Court vacancy: Judge Brett M. Kavanaugh of the United States Court of Appeals for the District of Columbia Circuit and Judge Raymond M. Kethledge of the United States Court of Appeals for the Sixth Circuit, in Cincinnati.
The two judges had something in common: They had both clerked for Justice Kennedy.
In the meantime, as the White House turned to stocking the lower courts, it did not overlook Justice Kennedy’s clerks. Mr. Trump nominated three of them to federal appeals courts: Judges Stephanos Bibas and Michael Scudder, both of whom have been confirmed, and Eric Murphy, the Ohio solicitor general, whom Mr. Trump nominated to the Sixth Circuit this month. . . .
. . . . Mr. Trump was apparently referring to Justice Kennedy’s son, Justin. The younger Mr. Kennedy spent more than a decade at Deutsche Bank, eventually rising to become the bank’s global head of real estate capital markets, and he worked closely with Mr. Trump when he was a real estate developer, according to two people with knowledge of his role.
During Mr. Kennedy’s tenure, Deutsche Bank became Mr. Trump’s most important lender, dispensing well over $1 billion in loans to him for the renovation and construction of skyscrapers in New York and Chicago at a time other mainstream banks were wary of doing business with him because of his troubled business history. . . .
1d. After Kennedy left Deutsche Bank in 2009 he went on to become co-CEO LNR Property LLC. LNR Property saved Jared Kushner’s midtown Manhattan property in 2011:
- ” . . . . from 2010–2013 Justin Kennedy was the co-CEO of LNR Property LLC with Tobin Cobb. . . .”
- ” . . . . According the New York Times, in 2007 Kushner Companies purchased ‘an aluminum-clad office tower in Midtown Manhattan, for a record price of $1.8 billion.’ At the time the NYT wrote that this deal was ‘considered a classic example of reckless underwriting. The transaction was so highly leveraged that the cash flow from rents amounted to only 65 percent of the debt service.’ . . .”
- ” . . . Who came to the rescue? None other than LNR Property, the company whose CEO at the time was Justin Kennedy. According to the NYT and the Real Deal, Mr. Kushner and LNR ‘reached a possible agreement with LNR Property, a firm specializing in restructuring troubled debt and which oversees the mortgage, that would allow him to retain control of the tower by modifying the terms of the $1.2 billion mortgage tied to the office portion of the building.’ . . .”
. . . . Justice Kennedy has two very successful sons in their own right, Gregory and Justin Kennedy. Gregory Kennedy, a Stanford Law graduate (a Stanford man like his father), was named CEO of Disruptive Technology Advisers in October of 2016. According to his LinkedIn page: Disruptive Technology Advisors is a “Los Angeles based merchant bank with an exclusive focus on mid to late stage growth companies.” . . . .
Justin Kennedy, a graduate of UCLA and Stanford(again like his father), has spent his career in the world of banking, investment, and, interestingly, real estate. In particular, from 2010–2013 Justin Kennedy was the co-CEO of LNR Property LLC with Tobin Cobb. In the world of high-stakes NYC real estate it would be fairly improbable that the Trump or Kushner groups, monoliths in their own right, would not have mingled or done business with the LNR at some point in time. We were not surprised, therefore, to discover that there is a likely connection. Here’s what we know:
According the New York Times, in 2007 Kushner Companies purchased “an aluminum-clad office tower in Midtown Manhattan, for a record price of $1.8 billion.” At the time the NYT wrote that this deal was “considered a classic example of reckless underwriting. The transaction was so highly leveraged that the cash flow from rents amounted to only 65 percent of the debt service.” The Times continues:
“As many real estate specialists predicted, the deal ran into trouble. Instead of rising, rents declined as the recession took hold, and new leases were scarce. In 2010, the loan was transferred to a special servicer on the assumption that a default would occur once reserve funds being used to subsidize the shortfall were bled dry. But the story may yet have a happy ending for Kushner, a family-owned business that moved its headquarters from Florham Park, N.J., to 666 Fifth, its first major acquisition in Manhattan.”
Who came to the rescue? None other than LNR Property, the company whose CEO at the time was Justin Kennedy. According to the NYT and the Real Deal, Mr. Kushner and LNR “reached a possible agreement with LNR Property, a firm specializing in restructuring troubled debt and which oversees the mortgage, that would allow him to retain control of the tower by modifying the terms of the $1.2 billion mortgage tied to the office portion of the building.” A spokesman for Mr. Kushner told the Wall Street Journal in March of 2011 that “[t]he Kushner’s are ready and willing to invest more money into the property as soon as they can come to mutually satisfactory terms with the servicing agent.” In that same article Kushner’s father-in-law and the future President commented on the negotiations with Justin Kennedy’s company. Speaking about the deal, Trump told the WSJ that Kushner is “a very smart young man…I think it (loan renegotiations) will come out well for him and everybody.” At this point there is no doubt that there was a direct business relationship between LNR and Kushner Companies at the time Justin Kennedy and Jared Kushner were both CEO. Even the future President was aware of the deal and commented on its respective merits. (That being said, it is not impossible that Jared Kushner and Justin Kennedy did not meet in connection with the specific deal in question; however, given the stakes involved it does seem more than likely that the two CEO’s would have interacted as negotiations were being conducted.)
The connections between Kushner, Kennedy, and Trump do not end there. Coincidentally, in 2011, the year in which some of these negotiations took place, Justin Kennedy for the first time was ranked on the New York Observer’s 100 Most Powerful People in New York Real Estate at #36. Donald Trump clocked in at #12. The New York Observer was owned at the time by none other than Jared Kushner himself. . . .
1e. Following the nomination by President Trump of Brett Kavanaugh to replace Justice Anthony Kennedy on the Supreme Court, we get confirmation that Trump got Kennedy to resign by agreeing to replace him with Kennedy’s former clerk Kavanaugh:
While the White House was successful for the most part in keeping President Donald Trump’s SCOTUS pick under wraps for the past two weeks, Trump was essentially decided on his nominee after Justice Anthony Kennedy told him he would retire in a meeting, Politico reported.
According to aides close to the White House who spoke to Politico, in that meeting Kennedy recommended Trump pick Brett Kavanaugh, who had served as a former law clerk to Kennedy. While Trump was reportedly already interested in Kavanaugh before that discussion with Kennedy, the retiring jurist’s recommendation helped seal the deal. . . .
2. The links between TrumpWorld and Anthony Kennedy’s sons is deeper still. Kennedy’s other son Gregory, has long-standing ties to Trump Silicon Valley adviser Peter Thiel, whom we first analyzed in FTR #718.
” . . . . . . . . Kennedy’s seat, meantime, seemed destined to go to Kavanaugh, thanks in part to the glowing review of Kennedy, whose son, Justin, knows Donald Trump Jr. through New York real estate circles, and whose other adult child has connections to Trump World via the president’s 2016 Silicon Valley adviser Peter Thiel, most recently when the Kennedy firm Disruptive Technology Advisers worked with Thiel’s Palantir Technologies. . . .”
After Justice Anthony Kennedy told President Donald Trump he would relinquish his seat on the Supreme Court, the president emerged from his private meeting with the retiring jurist focused on one candidate to name as his successor: Judge Brett Kavanaugh, Kennedy’s former law clerk.
Trump, according to confidants and aides close to the White House, has become increasingly convinced that “the judges,” as he puts it, or his administration’s remaking of the federal judiciary in its conservative image, is central to his legacy as president. And he credits Kennedy, who spent more than a decade at the center of power on the court, for helping give him the opportunity.
So even as Trump dispatched his top lawyers to comb though Kavanaugh’s rulings and quizzed allies about whether he was too close to the Bush family, potentially a fatal flaw, the president was always leaning toward accepting Kennedy’s partiality for Kavanaugh while preserving the secret until his formal announcement, sources with knowledge of his thinking told POLITICO. . . .
. . . . Kennedy’s seat, meantime, seemed destined to go to Kavanaugh, thanks in part to the glowing review of Kennedy, whose son, Justin, knows Donald Trump Jr. through New York real estate circles, and whose other adult child has connections to Trump World via the president’s 2016 Silicon Valley adviser Peter Thiel, most recently when the Kennedy firm Disruptive Technology Advisers worked with Thiel’s Palantir Technologies. . . .
3. As the following article from last year about the Trump/Kennedy family ties notes, Gregory Kennedy and Peter Thiel are more than just business associates. They went to Stanford Law School together and served as president of the Federalist Society in back-to-back years.
. . . . Another is through Kennedy’s other son, Gregory, and Trump’s Silicon Valley adviser Peter Thiel. They went to Stanford Law School together and served as president of the Federalist Society in back-to-back years, according to school records. More recently, Kennedy’s firm, Disruptive Technology Advisers, has worked with Thiel’s company Palantir Technologies.
In fact, during the early months of the Trump administration, Gregory Kennedy has worked at NASA as a senior financial adviser as part of the so-called “beachhead” team. . .
4. Gregory Kennedy’s DTA has an unusually close relationship with Palantir, a company that has helped the Trump administration.
Kennedy’s DTA has other personal connections to Palantir. Alex Fishman and Alex Davis, two other DTA founders, “enjoyed a very close relationship” with Palantir co-founder Alex Karp, according to the lawsuit.
It should be noted that the alleged secrecy with which Palantir treats its operating and investing information is characteristic of Bormann organizations. A closeted, insiders-only operating ethic serves the need for this consummately powerful organization to maintain a relatively low profile, even as it gains power, influence and wealth.
” . . . . Yet Palantir — whose stock changes hands only through private trades — goes to great lengths to keep any detailed information about its business private. . . .”
A lawsuit by Palantir investor KT4 Partners alleges that Palantir is illegally blocking investors from selling shares in the company and that Kennedy’s Disruptive Technology Advisors (DTA) is a key partner and beneficiary of this strategy.
KT4 claims that when it tried to sell its shares of Palantir to a third-party, Palantir would have DTA contact the third-party and convince them to have Palantir sells them the shares directly instead. DTA would then collect a commission.
The central dynamic in the allegations of plaintiff (and Palantir investor) KT4 is set forth as follows: ” . . . . But remarkably, KT4 claims that when Palantir receives information from an investor about a planned sale, it uses that information to contact the buyer and persuade them instead to buy shares directly from the company or from certain Palantir insiders. One particular broker, Disruptive Technology Advisers, or DTA, repeatedly gets commissions from these sales, even when it ‘performed no legitimate work,’ KT4 claims. KT4 says it experienced interference by Palantir when it tried to sell shares to Highbridge Capital Management, a hedge fund that was owned by JPMorgan Chase, in May 2015. After KT4 notified Palantir of the planned sale, Palantir turned around and instructed DTA to ‘take the opportunity, on Palantir’s behalf,‘and arrange a sale from Palantir to Highbridge instead, according to the lawsuit. . . .”
Palantir Technologies, one of the most valuable startups in Silicon Valley, has deprived investors of basic information about its business and repeatedly hindered efforts by investors to sell their shares, according to a blistering lawsuit filed by a longtime investor.
In addition to keeping at least some shareholders in the dark about its financial performance, Palantir has “engaged in a pattern and practice” of attempting to thwart their attempts to sell stock, according to the lawsuit, filed by investment firm KT4 Partners. Instead of letting these investors sell shares, Palantir has steered their sale opportunities to itself or its executives, while showering a favored brokerage firm with commissions even when the firm does no work at all, the lawsuit claims.
KT4 Partners first bought Palantir shares over a decade ago and is seeking to compel Palantir to hand over financial records, which it says are needed to understand the value of its investment. Further, KT4 claims it needs this information to investigate whether Palantir or its executives have engaged in “improper and illegal conduct” to harm minority shareholders. The lawsuit was filed under seal last week in the Delaware Court of Chancery; a partially redacted version was released on Monday and is reported here for the first time. . . .
. . . . Co-founded in 2004 by the billionaire Peter Thiel, who is now advising President Donald Trump, Palantir analyzes data for government agencies and major corporations. It has a $20 billion valuation, making it the third most highly valued startup in Silicon Valley, behind only Uber and Airbnb. Yet Palantir — whose stock changes hands only through private trades — goes to great lengths to keep any detailed information about its business private. A report by BuzzFeed News last year gave an unprecedented, though limited, account of its commercial operations.
The lawsuit, a highly unusual step for a startup investor, follows efforts by KT4 to obtain business information through other means. KT4 made a written demand last August to inspect Palantir’s books and records, the lawsuit says. But then, according to the lawsuit, Palantir retroactively amended its investors’ rights agreement “for the sole and express purpose” of avoiding disclosure obligations. . . .
. . . . Palantir is under increasing pressure from its shareholders, a number of whom have held its stock for a decade or more and are anxiously awaiting a payday. Former employees, who received a major part of their pay in stock options, have struggled to cash out, despite limited share purchase offers arranged by the company. Last fall, in a reversal of his longtime refusal to pursue an IPO, Palantir CEO Alex Karp said at a tech conference, “We’re now positioning the company so we could go public.”
This statement by Karp has a previously undisclosed backstory, according to the lawsuit: KT4 says it came after a formal request by the investor for information on whether Palantir had considered an IPO.
KT4 says its stake in Palantir is worth over $60 million — a significant sum by many measures, but small in the context of Palantir, which has raised more than $2 billion from investors. When KT4 tried to sell portions of its stake, Palantir repeatedly interfered, the lawsuit claims. Palantir, following a common practice in Silicon Valley, requires that any sellers of its stock seek the company’s approval for the transaction; companies do this to limit and manage ownership of their shares.
But remarkably, KT4 claims that when Palantir receives information from an investor about a planned sale, it uses that information to contact the buyer and persuade them instead to buy shares directly from the company or from certain Palantir insiders. One particular broker, Disruptive Technology Advisers, or DTA, repeatedly gets commissions from these sales, even when it “performed no legitimate work,” KT4 claims.
KT4 says it experienced interference by Palantir when it tried to sell shares to Highbridge Capital Management, a hedge fund that was owned by JPMorgan Chase, in May 2015. After KT4 notified Palantir of the planned sale, Palantir turned around and instructed DTA to “take the opportunity, on Palantir’s behalf,” and arrange a sale from Palantir to Highbridge instead, according to the lawsuit.
But when Alex Fishman, a founder of DTA, met with a senior managing director at Highbridge, the hedge fund executive said he would not break his deal with KT4, telling Fishman to leave his office, according to the lawsuit. The situation escalated when Karp, the Palantir CEO, learned of Highbridge’s affiliation with JPMorgan — a very important customer of Palantir’s — and that the bank’s CEO, Jamie Dimon, “would be asked to contact Karp directly to express displeasure” at these tactics, the lawsuit says. Karp then allegedly let the sale by KT4 go through.
Later, in December 2015, Palantir and DTA had more success in impeding a sale of shares by KT4 and other investors to a Chinese investment company, whose name is redacted in the document, the lawsuit says. DTA, representing Palantir, contacted the buyer and led it to believe that it was required to buy the shares directly from Palantir, ultimately leading the buyer to call off the deal with KT4 and the others.
Until KT4 made its recent demand for financial information, Palantir refused to provide financial information to buyers of its shares except through DTA — forcing buyers and sellers to do business with that firm or with Fishman, the lawsuit says.
Even when DTA was not involved in a deal, it still could get paid, according to KT4. Last summer, when UBS Securities was brokering a sale of Palantir shares, Karp demanded that UBS pay 25 cents a share to Fishman and DTA, even though DTA “had performed no work on the transaction” — and UBS agreed to make the payment, the lawsuit says. (KT4 says it learned this from a UBS managing director, but in an interview with BuzzFeed News, a person close to UBS disputed that the bank participated in such a sale and denied that UBS agreed to pay DTA.)
Fishman and Alex Davis, the other DTA founder, recently “enjoyed a very close relationship” with Karp, according to the lawsuit. (According to Fishman’s LinkedIn profile, he sold his half of DTA to Davis last week and no longer works there.) . . .
. . . . Even as it blocks sales by smaller investors, Palantir has allowed Karp and Thiel to sell shares, according to the lawsuit. KT4 claims that these sales fly in the face of rights it has as an investor to participate in such transactions. . . .
5. We have covered Peter Thiel in numerous programs, beginning with our warning about him in FTR #718.
Some of the points we have made about him include:
- His family background in the Frankfurt (Germany) chemical business. Probably I.G. Farben/Bormann, in that context.
- His primary role in Palantir, apparently the maker of the PRISM software at the epicenter of L’Affaire Snowden.
- His role as the primary financier of Ron Paul’s super PAC. (Paul is an unabashed white supremacist, joined at the hip with David Duke and the neo-Confederate movement. He was the Presidential candidate of choice for Eddie “The Friendly Spook” Snowden and Julian Assange.) Snowden’s first attorney and the attorney for the Snowden family–Bruce Fein–was the chief legal counsel for Ron Paul’s 2012 Presidential campaign.
- Thiel’s belief system is antediluvian: “. . . . ‘I no longer believe that freedom and democracy are compatible,’ Thiel wrote in a 2009 manifesto published by the libertarian Cato Institute. ‘Since 1920, the vast increase in welfare beneficiaries and the extension of the franchise to women — two constituencies that are notoriously tough for libertarians — have rendered the notion of ‘capitalist democracy’ into an oxymoron.’ . . . .”
Thiel began his professional life as an attorney–working for Sullivan & Cromwell. His leadership of Stanford’s Federalist Society (Gregory Kennedy lead the group as well) raises some interesting questions about Thiel’s legal point of view.
We note that his apocalyptic, anti-Enlightenment ideology draws on, among other influences, Carl Schmitt. Arguably the prime mover behind the German Conservative Revolution, Schmitt was also: “. . . . a Nazi and the Third Reich’s preeminent legal theorist. For Thiel, Schmitt is an inspiring throwback to a pre-Enlightenment age, who exalts struggle and insists that the discovery of enemies is the foundation of politics. . .”
“Peter Thiel’s Apocalypse” by Scott Lucas; San Francisco Magazine; 11/29 2017.
. . . . If press reports are correct, President Trump is considering appointing Thiel to be chair of the President’s Intelligence Advisory Board—a position previously held by such establishment sages as Brent Scowcroft and Chuck Hagel. This would make the 50-year-old entrepreneur one of the top executive branch advisers on America’s intelligence agencies. And it would be one of the most peculiar high-level appointments in American political history. . . .
. . . . For Thiel, Osama bin Laden is a kind of return of the religious repressed, an evil eruption from an archaic world we thought had vanished. “Today mere self-preservation forces all of us to look at the world anew, to think strange new thoughts, and thereby to awaken from that very long and profitable period of intellectual slumber and amnesia that is so misleadingly called the Enlightenment,” he writes.
To explore these “strange new thoughts,” Thiel turns to German legal scholar Carl Schmitt—a brilliant thinker who was also a Nazi and the Third Reich’s preeminent legal theorist. For Thiel, Schmitt is an inspiring throwback to a pre-Enlightenment age, who exalts struggle and insists that the discovery of enemies is the foundation of politics. . . . .
6. Thiel’s brief legal career was at Sullivan & Cromwell, the old Dulles law firm.
. . . After collecting his law degree, Thiel clerked for U.S. Federal Circuit Judge Larry Edmondson in Atlanta and then joined Sullivan & Cromwell LLP in New York. He lasted seven months and three days before quitting out of boredom, he says.
7. In FTR #946, we examined Cambridge Analytica, its Trump and Steve Bannon-linked tech firm that harvested Facebook data on behalf of the Trump campaign.
Palantir was apparently deeply involved with Cambridge Analytica’s gaming of personal data harvested from Facebook in order to engineer an electoral victory for Trump. Thiel was an early investor in Facebook, at one point was its largest shareholder and is still one of its largest shareholders. ” . . . . It was a Palantir employee in London, working closely with the data scientists building Cambridge’s psychological profiling technology, who suggested the scientists create their own app — a mobile-phone-based personality quiz — to gain access to Facebook users’ friend networks, according to documents obtained by The New York Times. The revelations pulled Palantir — co-founded by the wealthy libertarian Peter Thiel — into the furor surrounding Cambridge, which improperly obtained Facebook data to build analytical tools it deployed on behalf of Donald J. Trump and other Republican candidates in 2016. Mr. Thiel, a supporter of President Trump, serves on the board at Facebook. ‘There were senior Palantir employees that were also working on the Facebook data,’ said Christopher Wylie, a data expert and Cambridge Analytica co-founder, in testimony before British lawmakers on Tuesday. . . . The connections between Palantir and Cambridge Analytica were thrust into the spotlight by Mr. Wylie’s testimony on Tuesday. Both companies are linked to tech-driven billionaires who backed Mr. Trump’s campaign: Cambridge is chiefly owned by Robert Mercer, the computer scientist and hedge fund magnate, while Palantir was co-founded in 2003 by Mr. Thiel, who was an initial investor in Facebook. . . .”
As a start-up called Cambridge Analytica sought to harvest the Facebook data of tens of millions of Americans in summer 2014, the company received help from at least one employee at Palantir Technologies, a top Silicon Valley contractor to American spy agencies and the Pentagon. It was a Palantir employee in London, working closely with the data scientists building Cambridge’s psychological profiling technology, who suggested the scientists create their own app — a mobile-phone-based personality quiz — to gain access to Facebook users’ friend networks, according to documents obtained by The New York Times.
Cambridge ultimately took a similar approach. By early summer, the company found a university researcher to harvest data using a personality questionnaire and Facebook app. The researcher scraped private data from over 50 million Facebook users — and Cambridge Analytica went into business selling so-called psychometric profiles of American voters, setting itself on a collision course with regulators and lawmakers in the United States and Britain.
The revelations pulled Palantir — co-founded by the wealthy libertarian Peter Thiel — into the furor surrounding Cambridge, which improperly obtained Facebook data to build analytical tools it deployed on behalf of Donald J. Trump and other Republican candidates in 2016. Mr. Thiel, a supporter of President Trump, serves on the board at Facebook.
“There were senior Palantir employees that were also working on the Facebook data,” said Christopher Wylie, a data expert and Cambridge Analytica co-founder, in testimony before British lawmakers on Tuesday. . . .
. . . .The connections between Palantir and Cambridge Analytica were thrust into the spotlight by Mr. Wylie’s testimony on Tuesday. Both companies are linked to tech-driven billionaires who backed Mr. Trump’s campaign: Cambridge is chiefly owned by Robert Mercer, the computer scientist and hedge fund magnate, while Palantir was co-founded in 2003 by Mr. Thiel, who was an initial investor in Facebook. . . .
. . . . Documents and interviews indicate that starting in 2013, Mr. Chmieliauskas began corresponding with Mr. Wylie and a colleague from his Gmail account. At the time, Mr. Wylie and the colleague worked for the British defense and intelligence contractor SCL Group, which formed Cambridge Analytica with Mr. Mercer the next year. The three shared Google documents to brainstorm ideas about using big data to create sophisticated behavioral profiles, a product code-named “Big Daddy.”
A former intern at SCL — Sophie Schmidt, the daughter of Eric Schmidt, then Google’s executive chairman — urged the company to link up with Palantir, according to Mr. Wylie’s testimony and a June 2013 email viewed by The Times.
“Ever come across Palantir. Amusingly Eric Schmidt’s daughter was an intern with us and is trying to push us towards them?” one SCL employee wrote to a colleague in the email.
. . . . But he [Wylie] said some Palantir employees helped engineer Cambridge’s psychographic models.
“There were Palantir staff who would come into the office and work on the data,” Mr. Wylie told lawmakers. “And we would go and meet with Palantir staff at Palantir.” He did not provide an exact number for the employees or identify them.
Palantir employees were impressed with Cambridge’s backing from Mr. Mercer, one of the world’s richest men, according to messages viewed by The Times. And Cambridge Analytica viewed Palantir’s Silicon Valley ties as a valuable resource for launching and expanding its own business.
In an interview this month with The Times, Mr. Wylie said that Palantir employees were eager to learn more about using Facebook data and psychographics. Those discussions continued through spring 2014, according to Mr. Wylie.
Mr. Wylie said that he and Mr. Nix visited Palantir’s London office on Soho Square. One side was set up like a high-security office, Mr. Wylie said, with separate rooms that could be entered only with particular codes. The other side, he said, was like a tech start-up — “weird inspirational quotes and stuff on the wall and free beer, and there’s a Ping-Pong table.”
Mr. Chmieliauskas continued to communicate with Mr. Wylie’s team in 2014, as the Cambridge employees were locked in protracted negotiations with a researcher at Cambridge University, Michal Kosinski, to obtain Facebook data through an app Mr. Kosinski had built. The data was crucial to efficiently scale up Cambridge’s psychometrics products so they could be used in elections and for corporate clients. . . .
8. A recounting of the role of John Foster Dulles and Sullivan & Cromwell’s roles in the formation of I.G. Farben.
. . . . Foster had helped design the Dawes Plan of 1924, which restructured Germany’s reparation payments in ways that opened up huge new markets for American banks, and later that year he arranged for five of them to lend $100 million to German borrowers. In the seven years that followed, he and his partners brokered another $900 million in loans to Germany–the equivalent of more than $15 billion in early-twenty-first century dollars. This made him the preeminent salesman of German bonds in the United States, probably the world. He sharply rejected critics who argued that American banks should invest more inside the United States and protested when the State Department sought to restrict loans to Germany that were unrelated to reparation payments or that supported cartels or monopolies.
Foster made much money building and advising cartels, which are based on agreements among competing firms to control supplies, fix prices, and close their supply and distribution networks to outsiders. Reformers in many countries railed against these cartels, but Foster defended them as guarantors of stability that ensured profits while protecting economies from unpredictable swings. Two that he shaped became global forces.
Among Foster’s premier clients was the New Jersey-based International Nickel Company, for which he was not only counsel but also a director and member of the executive board. In the early 1930s, he steered it, along with its Canadian affiliate, into a cartel with France’s two major nickel producers. In 1934, he brought the biggest German nickel producer, I.G. Farben, into the cartel. This gave Nazi Germany access to the cartel’s resources.
“Without Dulles,” according to a study of Sullivan & Cromwell, “Germany would have lacked any negotiating strength with [International Nickel], which controlled the world’s supply of nickel, a crucial ingredient in stainless steel and armor plate.”
I.G. Farben was also one of the world’s largest chemical companies–it would produce the Zyklon B gas used at Nazi death camps–and as Foster was bringing it into the nickel cartel, he also helped it establish a global chemical cartel. He was a board member and legal counsel for another chemical producer, the Solvay conglomerate, based in Belgium. During the 1930s, he guided Solvay, I. G. Farben, the American firm Allied Chemical & Dye, and several other companies into a chemical cartel just as potent as the one he had organized for nickel producers.
In mid-1931, a consortium of American banks, eager to safeguard their investments in Germany, persuaded the German government to accept a loan of nearly $500 million to prevent default. Foster was their agent. His ties to the German government tightened after Hitler took power at the beginning of 1933 and appointed Foster’s old friend Hjalmar Schacht as minister of economics.
Allen [Dulles] had introduced the two men a decade earlier, when he was a diplomat in Berlin and Foster passed through regularly on Sullivan & Cromwell business. They were immediately drawn to each other, Schacht spoke fluent English and understood the United States well. Like Dulles, he projected an air of brisk authority. He was tall, gaunt, and always erect, with close-cropped hair and high, tight collars. Both men had considered entering the clergy before turning their powerful minds toward more remunerative pursuits. Each admired the culture that had produced the other. Both believed that a resurgent Germany would stand against Bolshevism. Mobilizing American capital to finance its rise was their common interest.
Working with Schacht, Foster helped the National Socialist state find rich sources of financing in the United States for its public agencies, banks, and industries. The two men shaped complex restructurings of German loan obligations at several “debt conferences” in Berlin–conferences that were officially among bankers, but were in fact closely guided by the German and American governments–and came up with new formulas that made it easier for the Germans to borrow money from American banks. Sullivan & Cromwell floated the first American bonds issued by the giant German steelmaker and arms manufacturer Krupp A.G., extended I.G. Farben’s global reach, and fought successfully to block Canada’s effort to restrict the export of steel to German arms makers. According to one history, the firm “represented several provincial governments, some large industrial combines, a number of big American companies with interests in the Reich, and some rich individuals.” By another account it “thrived on its cartels and collusion with the new Nazi regime.” The columnist Drew Pearson gleefully listed the German clients of Sullivan & Cromwell who had contributed money to the Nazis, and described Foster as chief agent for “the banking circles that rescued Adolf Hitler from the financial depths and set up his Nazi party as a going concern.”
Although the relationship between Foster and Schacht began well and thrived for years, it ended badly. Schacht contributed decisively to German rearmament and publicly urged Jews to “realize that their influence in Germany has disappeared for all time.” Although he later broke with Hitler and left the government, he would be tried at Nuremberg for “crimes against peace.” He was acquitted, but the chief American prosecutor, Robert Jackson, called him “the facade of starched responsibility, who in the early days provided the window dressing, the bait for the hesitant.” He baited no one more successfully than Foster.
During the mid-1930s, through a series of currency maneuvers, discounted buybacks, and other forms of financial warfare, Germany effectively defaulted on its debts to American investors. Foster represented the investors in unsuccessful appeals to Germany, many of them addressed to his old friend Schacht. Clients who had followed Sullivan & Cromwell’s advice to buy German bonds lost fortunes. That advice, according to one study, “cost Americans a billion dollars because Schacht seduced Dulles into supporting Germany for far too long.’ . . . .
. . . . Foster had clear financial reasons to collaborate with the Nazi regime, and his ideological reason–Hitler was fiercely anti-Bolshevik–was equally compelling. In later years, scholars would ask about his actions in the world. Did he do it out of a desire to protect economic privilege, or out of anti-Communist fervor? The best answer may be that to him there was no difference. In his mind defending multinational business and fighting Bolshevism were the same thing.
Since 1933, all letters written from the German offices of Sullivan & Cromwell had ended, as required by German regulations, with the salutation Heil Hitler! That did not disturb Foster. He churned out magazine and newspaper articles asserting that the “dynamic” countries of the world–Germany, Italy, and Japan–“feel within themselves potentialities which are suppressed,” and that Hitler’s semi-secret rearmament project simply showed that “Germany, by unilateral action, has now taken back her freedom of action.” . . . .
Dave, you briefly link to FTR #757 in the above text but I think it’s so important that it should also be highlighted by a comment. Listeners would do very well to review that program and the network behind Palantir.
https://spitfirelist.com/for-the-record/ftr-757-the-adventures-of-eddie-the-friendly-spook-part-4-dramatis-personae-part-4-the-gruppenhobbit-and-the-underground-reich/
Your point on the probable — but denied — link between all of the PRISM software in use around the world is excellent. The name Palantir was inspired by the magic crystals in Tolkien’s LOTR trilogy which were placed in different kingdoms but all linked together allowing their users to connect and share information, knowingly or not. That type of inspiration leads me to believe the denials of the link are just prevarication.
With the surprise last minute move by Republican Senator Jeff Flake to delay the confirmation of Brett Kavanaugh by a week to give the FBI (not enough) time to investigation the wave of allegations of past sexual assaults and possible gang rapes, American society is set to spend another week scrutinizing the increasingly disturbing profile of Kavanaugh’s character. So given that we’re talking about appointing a man who appears to have embraced a worldview of machismo and the misogynistic and dehumanizing objectification of women to a lifetime appointment to one of the most powerful positions in the US, it’s probably a useful time to note that the casual culture of rank misogyny that Kavanaugh appears to have been immersed represents a meta-problem that has plagued humanity forever: the dehumanization of ‘others’.
Whether those ‘others’ of members of another race, tribe, gender, or whatever. There’s simply no denying that the dehumanization of ‘others’ is a tragically ‘human’ thing to do, and there’s perhaps no better and older example of that facet of humanity than misogyny. And when you combine that human tendency towards dehumanization with an embrace of a predatory mindset and hormones and apply it in the context of a misogynistic culture (which is virtually every traditional culture), you’re going to end up with a society inevitably populated with a lots of little Brett Kavanaughs. Guys who have adopted a worldview where women are conquests and little else.
Sure, such men might have some women in their lives that they don’t objectify, but it’s undeniable that the view of women as property, sex objects, and not much else is one of those meta-stories across human history. And that fundamental drive to dehumanize and prey on ‘others’ isn’t just found at the core of misogynistic worldviews. All sorts of different aspects of authoritarian cultures rely on that same underlying human capacity to dehumanize and prey on others. And Brett Kavanaugh just happens to be a great example of highlighting this foundation of dehumanizing predation shared by everything from misogynists to dictators to theocrats and any other power monger. And most especially fascists. If you had to give a name to an ideology that essentially embraces the spirit of dehumanizing predation it’s facism.
When that desire by the powerful few to capture society and put it under their thumb under the spirit that the strong should dominate and subjugate the weak is manifested as a political movement, that’s invariably going to be a movement with heavy fascist overtone. And one of those overtones is a drive to remove whatever protections might exist to prevent the strong from prey on everyone else. Creating a virtual ‘law of the jungle’ that empowers the strong to dominate the weak isn’t just an ends and a means when it comes to fascist thought. It’s also an underlying human impulse embraced by those who have adopted a fundamentally predatory mindset. A predatory impulse that’s found in everyone from a serial rapist to a serial strongman. Or an authoritarian oligarch intent on capturing society.
And in the realm of American politics, it’s hard to come up with a group more emblematic of that movement by the powerful to shape society in ways that empower the powerful to dominate the weak and vulnerable than a group like the Federalist Society, of which Brett Kavanaugh is a member. Because the Federalist Society just happens to be the most influential judicial organization in the US — the four current right-wing members of the Supreme Court are all Federalist Society members — and the entire goal of the Federalist Society is to reshape the US courts in a way that makes them friendlier to the very wealthy, big business, and the authoritarian religious right. Oh, and it’s heavily financed by the Koch brothers. It’s that kind of organization.
So if the US Senate is about to appoint a serial predator to the Supreme Court, it’s probably a good time to point out that making life easier for elite serial predators — i.e. right-wing oligarchs who want to capture society — is the primary purpose of the Federalist Society:
““It’s important for all Americans to understand that the extreme right wing, the extreme conservatives, are much better organised, much better financed, and have a much better idea of what they’re about than the liberals or progressives do. The liberals or progressives need to wake up and take a look at what’s happening at the other end of the ideological spectrum and figure out a way to get their own house in order, because liberals and progressives have been losing ground now for the last almost 40 years, and even to this day they have not come with either an effective set of ideas or an effective organising principle that allows them to make this a fair contest,” Avery tells me.”
The liberals or progressives need to wake up and take a look at what’s happening at the other end of the ideological spectrum. It’s a chilling an apt warning. And in the context of these allegations of Kavanaugh operating in a world where women were systematically preyed upon, it’s a warning that’s become especially chilling and apt. Because, again, that underlying capacity to dehumanize and prey upon the vulnerable isn’t just a the core of misogyny. It’s also at the core of all sorts of other human behaviors that involve the systematic abuse of power. And when we look at what the Federalist Society fights for, and who it’s fighting for, it’s hard to avoid the conclusion that it’s a society dedicate to making it easier for the powerful to wield their power:
Yep, the powerful judicial organization in the US has, at it’s core credo, the idea that business and property owners should be able to do whatever they want without interference. And while that is no doubt portrayed as “stopping the oppressive government from trampling on the helpless private citizen”, it’s undeniable that the groups is fighting for the rights of the most powerful people in the country to act with impunity. In addition, the religious right should get the power to use religion as an excuse to discriminate, extending that capacity to abuse power to average citizens to be wielded against their fellow citizens. It’s truly a ‘wolf in sheep’s clothing’ movement. A movement dedicated to power for power’s sake under the guise of judicial philosophy. A philosophy torn between the goal of limiting the ability of the federal judiciary to act on the public’s behalf and the goal of enabling that same judiciary to enforce a traditionalist right-wing religious worldview:
And this organization run by and for the powerful is now more powerful than it’s ever been before and the most influential judicial organization in the country. And yet it was only started in 1982. It shows just how powerful the powerful are in the US: with enough financing from wealth donors like the Kochs, this group that was started by conservative law students at Yale (where Kavanaugh went) and the University of Chicago managed to basically take over the US judicial system in a few decades:
And that takeover of the US courts by an organization run by and for the powerful to make themselves even more powerful is one of the meta-stories that isn’t just tangentially connected to the story of Brett Kavanaugh’s apparent history of sexual assault and misogyny. It’s deeply connected. To some extent it’s different facets of the same underlying story of that all too human capacity to prey on those you don’t see fully human. And that story, in today’s context, is the story of the rise of ascendancy of fascism and the far right across the globe. Brett Kavanaugh’s nomination is just one particularly sordid chapter in that larger underlying story.
It’s also worth noting that act of dehumanizing and preying on others represents doesn’t just represent an all too human capacity. And also represents an all too human incapacity, in the sense of that the dehumanization of others tends to be a profoundly stupid act in addition to being evil. Because evil and profound stupidity are deeply intertwined phenomena. And if you’re the kind of guy that, hormones or not, doesn’t feel awful about abusing women you probably lack a cognitive capacity to do so and that’s a real form of stupidity. Especially when alcohol is involved. If you can’t see people of the opposite sex or different tribes, religions, social classes, or whatever as fully human, you aren’t just evil. You are profoundly stupid too, at least in that key area of cognition and that’s inevitably going to affect all sorts of other areas of cognition. The ‘ol ‘stupid or evil’ question is really a trick question. Because while you can have stupidity without evil, you can’t really have evil without some sort of profound stupidity. So that’s another aspect of this story. It’s a stupid story about the Supreme Court. Or rather, a very important story about profound stupidity and the Supreme Court and the power dynamics of society in general and the dangers of putting someone on that court who appears to have embraced a worldview where the powerful should be able to act with impunity. This is probably a good week for the US to explore all of that and hopefully learn about the Federalist Society in the process.
With the nomination of Brett Kavanaugh currently awaiting the results of an FBI investigation following a wave of sexual assault allegations, one of the big questions at this point is why is the GOP sticking with this guy, and risking alienating even more women from the GOP, when they could just as easily ask him to withdraw and choose a different candidate? And while attempts to answer that question usually revolve around the observation that Kavanaugh’s views the a sitting president can’t be indicted are going to be highly prized by someone like President Trump.
But as the following pair of articles point out, there’s another area of significant support for Kavanaugh within the GOP establishment: He is really close to the Bush family. Brett served as the Assistant to the President and Staff Secretary for President George W. Bush from 2003–2006. He also worked in George H. W. Bush’s solicitor general’s office. And, of course, he was the principal author of the Starr Report.
And his wife Ashley Kavanaugh is also quite close to the Bushes. She was the assistant to George W. Bush when he was governor of Texas from 1996 to 1999. She worked on the Bush-Cheney campaign in 2000. From 2001 to 2005 she was George W. Bush’s personal secretary. From 2005–2009 she was the Director of Special Projects for the George W. Bush presidential Foundation. And from 2009–2010 she was the media relations coordinator for the George w. Bush Presidential Center.
So if it seems amazing that the GOP establishment appears to be willing to stick with Kavanaugh and risk solidifying the GOP’s Trumpian brand as a haven for sexual assaulters, it’s worth keeping in mind that the Bush-faction of the GOP is probably particularly keen on seeing Kavanaugh get that seat:
“Both Brett and Ashley Kavanaugh served in the Bush administration and Bush nominated Brett M. Kavanaugh to the position he currently holds on the U.S. Court of Appeals in Washington D.C. Trump revealed Kavanaugh as his pick for Supreme Court on July 9, 2018. Kavanaugh was one of four rumored finalists, with Judges Amy Coney Barrett, Thomas Hardiman, and Raymond Kethledge also among them. Because Trump and the Bush family have a publicized feud, some people thought Brett Kavanaugh’s Bush ties could hurt his chances with the president. However, that didn’t stop the president from picking him in the end, even though some conservative infightingbroke out over the pick, with “whisper campaigns” calling Brett Kavanaugh the “low-energy Jeb Bush pick,” according to National Review..”
Both Brett and his wife Ashley go way back with the Bushes. It’s a key feature of Kavanaugh’s resume. And not a good feature given the political nature of the Bush clan, but a relevant one:
And Ashley Kavanaugh arguably has just as close ties to the Bushes as her husband:
But this all doesn’t quite capture just how influential a role Kavanaugh played in the George W. Bush administration. For that, we’ll take a look at the following article, which covers how Kavanaugh was basically George W. Bush’s “intellectual body man” and millions of documents related to his work for Bush are being withheld during this nomination process:
“It was the apogee of Brett Kavanaugh’s rise through the ranks of the conservative movement, a job that put him in daily proximity to President George W. Bush and made him an intellectual “umpire” for a welter of political and policy aides who were aiming to shape the Republican agenda.”
An “intellectual umpire” for the George W. Bush administration. That’s not exactly an uncontroversial part of one’s resume. And as part of his work for Bush as the staff secretary Kavanaugh was working particularly close with “Bush’s Brain” Karl Rove:
And this is why Kavanaugh stands out as being an unusually political Supreme Court nominee. Many justices have had some sort of involvement with politics before joining the high court, but none in recent memory are as much of a political animal of Kavanaugh. And a political animal for not just any administration but the George W. Bush administration. When you’re the former “intellectual umpire” of that administration that’s a pretty massive issue that needs to be addressed before you’re appointed to the Supreme Court:
So it should come as no surprise that the majority of the documents related to his work as Bush’s “intellectual umpire” aren’t being made available to the Democrats or the public during the nomination process. The official line from the Trump White House is that the only part of Kavanaugh’s past that’s worthy of review is his work as a judge. His work as George W. Bush’s intellectual umpire is apparently irrelevant:
But despite the refusal to release the bulk of the documents that cover Kavanaugh’s work during the Bush years, there are still hints from the available documents of the kind of work he was doing. And those hints point towards Kavanaugh influencing virtually every policy agenda of the Bush administration. As Karl Rove put it, “Virtually every piece of paper had to pass through the staff secretary’s hands” on the way to Bush’s desk. In that sense he really was Bush’s intellectual umpire:
So when the Bush/Rove-faction of the GOP continues to stand behind Kavanaugh despite the growing political damage his nomination is doing to the GOP don’t forget that they’re about to get Bush’s intellectual umpire on the Supreme Court! It’s a pretty massive prize.
It’s also worth noting that a lawsuit to force the release of 100,000 of those unreleased Bush-administration Kavanaugh documents being put forward by Democratic Senator Jeff Merkely is slowly making its way through the courts. So it’s possible those documents will eventually be released. But if it does happen it probably won’t happen until after the nomination vote that’s supposed to happen soon.
So don’t forget that while it’s abundantly clear that the GOP would prefer it if a recounting of Brett Kavanaugh’s drunken abusive school days were left out of the nomination process, there’s a much more recent chapter of Kavanaugh’s life they’re also trying to avoid talking about.
There’s no shortage of questions raised by the confirmation of Brett Kavanaugh’s nomination as a Supreme Court justice. The fact that the Supreme Court now has the first clear hard right majority in decades raises basic questions about what, if anything, of the post-New Deal era of jurisprudence is going to survive the coming onslaught. It’s easy to forget that the right-wing oligarchy in the US has never viewed programs like Social Security and Medicare as constitutionally legitimate (let alone Obamacare) and has never given up on its decades-long struggle to overturn those laws through any means necessary, but it’s going to be a lot harder to forget these things now that the Supreme Court really is poised to become the ultimate right-wing ‘activist’ court. John Roberts is the new ‘swing’ vote. That’s how in peril the liberal legacies of the last 80 years are.
And then there’s the clear possibility of the court becoming even more right-wing should something happen to one of the four remaining left-leaning justices. We could easily see a 6–3 far right majority before the end of Trump’s first term. And this, of course, is all happening in the context of the near total domination of the US government at federal and state levels by a Republican party that is infused with the spirit of fascism and white nationalism.
So the long-term questions about the implications of this historic shift loom large. But perhaps the question that looms the largest in the immediate term is what kind of impact that is going to have on the 2018 mid-terms that are just a month away. After all, the fight over the multiple allegations of sexual assault leveled against Brett Kavanaugh has clearly caused a surge in Republican voter enthusiasm now that the Trump, the GOP, and the right-wing media complex all rallied around the idea that the accusations are completely baseless and part of a massive smear campaign and part of some sort of broader left-wing attack against all white men (Tucker Carlson actually suggested Kavanaugh’s nomination fight could spark a race war). It’s the kind of argument that has become a GOP specialty, so it’s no surprise that this narrative worked yet again.
It’s still unclear if the party is going to be able to nurse kind of victimhood narrative over the next month now that Kavanaugh is confirmed. But all signs at this point indicate that the GOP is going to try to use that victimhood narrative as its best tool for keep that right-wing voter enthusiasm going into the November vote. And to some extent that logic makes sense: given the yawning ‘enthusiasm’ gap the GOP was suffering up until this point that was closed by the right-wing backlash against the Kavanaugh accusations, it’s pretty clear that the GOP has little to lose by continuing to stoke outrage with the Republican base by promoting the narrative that all of the allegations against Kavanaugh are part of a giant conspiracy to baselessly destroy a good, honorable man.
And perhaps that will continue to be a successful tactic. But part of what’s so fascinating about the current political dynamic is that it’s a highly unstable dynamic in the sense that there’s still so much that isn’t known about Brett Kavanaugh’s background — including, but not limited to, the sexual assault accusations — and there’s nothing stopping more of that information from coming out over the next month and shaping that dynamic. For instance, it’s now become clear that the White House totally rigged the one week FBI investigation into the allegations. The New York Times just reported that Trump was about to give the FBI permission to investigate anyone but White House lawyer Don McGahn reportedly stopped him after warning that a full investigation could imperil Kavanaugh’s chances. And the FBI only interviewed 10 people, and that didn’t include Ford or Kavanaugh. And that report about what appears to be a joke FBI investigation came out before the vote to confirm Kavanaugh. It’s an example of the kind of new information that could come out and potentially shape how this issue is perceived over the next month and highlights how big a political gamble this is going to be for the GOP to nationalize the right-wing outrage over Kavanaugh’s nomination heading into the final stretch of the mid-terms.
And yet, given the remarkable power of the right-wing media complex to sell pretty much any narrative they want to their audiences, it’s unclear what, if anything, could emerge about Kavanaugh that would puncture the ‘Kavanaugh was attack with smears and lies’ narrative that managed to so successfully fire up the right-wing based. Still, it’s very possible that left-wing and independent voters could become even motivated to vote as new information about Kavanaugh comes out. The political impact of Kavanaugh’s ascension to the Supreme Court remains a highly fluid situation.
So given all that, it’s worth noting that there’s another unresolved issue over Kavanaugh that didn’t get much attention during the nomination process but could actually end up impacting the public perception of Kavanaugh in ways that change the public perception of the veracity of the sexual assault claims against him: the question of whether or not Kavanaugh lied to Congress over the role he may have played in a 2002 GOP scandal over the theft of Democratic documents from a congressional server, a.k.k the ‘Senate hacking scandal’. That’s the scandal surrounding Manual Miranda, the former Republican Senate counsel on the Judiciary Committee who noticed in 2002 that Democratic files — files containing information on strategies for how to deal with judicial nominations — stored on a shared server were accessible so he took the files. And Brett Kavanaugh, who was working as assistant to the President at the time and working on selecting judicial nominees, was allegedly given access to the files.
These allegations of course came up during the nomination process and Kavanaugh of course denied any involvement in it. So if evidence emerges suggesting that Kavanaugh did, in fact, work with those stolen documents and knew they were stolen he could be charged with perjury. And in the context of a ‘he-said/she-said/she-said/she-said/she-said’ series of allegations over sexual harassment, an emerging perjury narrative probably isn’t going to help Kavanaugh’s case.
So is there some new information that’s coming out about this Senate email scandal and Kavanaugh’s role? Maybe. That will depend on the speed of two Freedom of Information Act (FOIA) lawsuits working their way through the courts. Both are lawsuits to get access to currently unreleased documents from Kavanaugh’s time in the Bush White House and both are set to have new documents released in coming weeks. Which means we could see some scandalous disclosures about Kavanaugh hitting right before the mid-terms. Maybe. We’ll see. And release of the documents is still subject to White House approval, meaning this could easily start looking like a White House Kavanaugh cover-up.
One of the lawsuits is pursued by the Electronic Privacy Information Center (EPIC). The other is by the Democratic Senators on the Judiciary Committee. Yes, even the Senators who had to vote on Kavanaugh weren’t given access to these documents. Documents that could have revealed whether or not Kavanaugh earlier perjured himself before them.
So what do we know about these documents? Well, one ‘smoking gun’ in the documents is that there were a number of emails sent from Miranda to Kavanaugh shortly after the reports of Miranda’s theft of the Democrats’ documents. Yep, we have stories about the hacking scandal hitting the news, and then Miranda emails Kavanaugh. But we don’t know what those emails said because they were sent in December 2003, which was after Kavanaugh left the job of assistant to the president and moved on to become the staff secretary. And anything after his time as assistant to the president was deemed outside the scope of the documents that needed to be produced to the Senate Judiciary Committee. So we know Miranda sent Kavanaugh emails shortly after this scandal went public but Senators didn’t get access to the content of those emails due to a technicality caused by Kavanaugh shifting roles in the White House. And now these FOIA lawsuits are set to see the release of those emails in coming weeks.
But, the release of these emails is still up to White House review. So we could easily see a situation where the White House refuses to release these emails, at least until after the mid-terms. They will no doubt incorporate it into the prevailing right-wing narrative and frame it as protecting Kavanaugh from a witch-hunt or something. But that whole situation really could unfold. Potentially right before the mid-terms. It’s a remarkable political situation and a big reason why the current political dynamic surrounding the nationalization of the Kavanaugh nomination as a political issue is such a big gamble:
“While it’s far from clear how important the undisclosed documents could be, and doubtful the mere prospect of their future disclosure will sway any votes, if new information emerges about divisive subjects after the Senate has already voted to confirm Kavanaugh, it could cast a permanent cloud on Kavanaugh’s service on the Supreme Court.”
Yep, while it’s far from clear how important the undisclosed documents could have been for Kavanaugh’s nomination process because that process was clearly a farce, there’s nothing stopping the eventual release of these documents from casting a permanent cloud on Kavanaugh as a Supreme Court justice. An eventual release could happen in coming weeks thanks to the two FOIA lawsuits:
So will this release happen before the mid-terms? We’ll see, but if it doesn’t happen before the mid-terms there’s nothing stopping it from becoming a campaign issue. After all, if the GOP is going to run on outrage over the accusations against Kavanaugh, raising this issue over possible perjury becomes a natural response by Democrats. So this really could suddenly become a national issue.
And part of what makes this a potential campaign issue is the fact that the few facts we do know just look so suspicious. Kavanaugh denied, under oath, have any involvement with the stolen documents and yet we know he suddenly received a bunch of emails from Miranda shortly after the story went public. It just looks horrible and the only way to truly clear it up is to release the documents:
So how many emails and documents might get released in this process? As many as 1,800 released to the hacking scandal alone. And some of those emails sent by Miranda to Kavanaugh apparently contain the work “Lundell”. And Lundell That happens to be the name of an obscure staffer who conspired with Miranda. It just looks so damn suspicious:
And the process of releasing the documents looks super suspicious too. Using an unprecedented process, the documents to be released are being reviewed by William A. Burck, who happens to be George W. Bush’s private lawyer and Kavanaugh’s former deputy. You almost couldn’t come up with a more suspicious-looking scenario:
And the only reason these highly suspicious looking emails from Miranda to Kavanaugh haven’t already been released is because only documents related to Kavanaugh’s work as Assistant to the President had to be released. For some reason his work as staff secretary didn’t warrant Senate review:
All in all, it’s looking like a highly suspicious situation. A highly suspicious situation that strongly points towards perjury. And don’t forget that the Senate ‘hacking’ scandal is only one of the potential issues where Kavanaugh may have perjured himself that could be revealed by the release of these documents.
So that’s all going to be a politically fascinating situation to watch play out. Will the White House stonewall the release of these documents until after the mid-terms and will the Democrats manage to turn that into a political liability? Might the GOP successfully frame questions of perjury as an extension of the ‘Democrats will do anything to destroy a good man’s reputation’ narrative and keep their base fired up? Who knows, blocking the release of these documents to ‘stop the destruction of Brett’ could become Trump’s new rallying cry.
Another general question raised by Kavanaugh’s ascension to the Supreme Court is what the impact of potentially permanent large gender-gap in voting preferences might do to American politics. Because one thing that’s empirically clear at this point is that if the GOP has determined that a voting demographic is overwhelmingly going to support Democrats (like minorities and urban voters) the GOP is going to do everything in its power to restrict that demographic from being able to successfully vote. Gerrymandering, voting restrictions on felons, and a growing array of rule limited voting access are all well-honed voter suppression techniques targeting left-wing constituencies at this point. But they aren’t techniques that can clearly target women. So if we enter into an era of a permanent large gender-gap, where women overwhelmingly net oppose the GOP, how are female voters going to be systematically suppressed? We know the GOP is going to try to do it so how are they going to go about it? That’s probably a question that’s going to be increasingly important to ask going forward.
There was a potentially explosive story last night on MSNBC when Lawrence O’Donnell regarding the source of Donald Trump’s current wealth and whether or not he’s an actual billionaire: According to a source described as “close to Deutsche Bank”, not only is Deutsche Bank in possession of Trump’s tax returns, but the bank is also in possession of loan documents that show Trump obtained loans with foreign oligarchs are co-signers. Specifically Russian oligarchs close to Putin, according to this anonymous source.
It’s also worth recalling what we’ve learned about Jared Kushner’s dealings in 2015 and 2016 with Lev Leviev to purchase the old New York Times building from Leviev in 2015 for $295 million. Kushner received a $285 million loan from Deutsche Bank about a month before the 2016 election as part of a refinancing deal for that purchase. And Deutsche Bank employees have said they saw suspicious activity in both Kushner’s and Trump’s accounts that had the appearance of money-laundering in 2016. Recall how Leviev was involved with one of the money-laundering operations involving Manhattan real estate implicated in the Magnitsky investigation. Leviev is als described as ‘close to Putin’, although he is more accurately characterized as a ‘Russian-Israeli’ businessman who is reportedly close to Felix Sater too.
So we already know about Kushner getting Deutsche Bank loans in 2016 to help with purchase one of Lev Leviev’s properties and this is based on Deutsche Bank employees deciding to go to the press with this information. Might this latest source ‘close to Deutsche Bank’ be one of those employees and might Lev Leviev be the co-signer?
O’Donnell then had David Cay Johnston on to talk about this news and Johnston pointed out that, while it’s entirely possible there were Russian oligarchs co-signing those loans, if Trump has been in the kind of situation where he needed foreign oligarchs to co-sign his loans we shouldn’t assume it’s limited to Russian oligarchs. We should be looking into Saudi, UAE, or Turkish oligarchs too as likely suspects. It’s important perspective to keep in mind with this story: if Trump was broke enough to need an oligarch co-signer, we shouldn’t assume he was exclusively using Russian oligarchs to get his loans given the global nature of his shady business relationships:
““Well, it would be the best place for him to go and it fits with the family’s own public statements — that they’ve tried to walk back since — about getting lots of assets from Russia,” Johnston replied. “But, you know, Donald may well have other backers. The next places to look would be the Saudis, the Emiratis and perhaps some people in Turkey, given Michael Flynn, his National Security Adviser, having been on the payroll illegally of Turkish interests when he was in the White House.””
That’s some good advice from David Cay Johnston: don’t assume this story ends with a Russian oligarch. If there’s one there’s one oligarch co-signer probably more and there’s no reason to believe they’re all Russians.
It’s also worth noting that we know the one person who could tell us the identities of any oligarch co-signers for Trump’s Deutsche Bank loans for any loans that took place before 2009: Justin Kennedy, Trump’s banker at Deutsche Bank until 2009 who reportedly worked closely with Trump during a period when Deutsche Bank was the only bank Trump could find to loan to him. So these mystery oligarch co-signers may explain why Deutsche Bank was willing to make loans to someone no other bank would touch.
And given the curious relationship between Trump, Kushner, and Leviev involving Manhattan real estate deals and Deutsche Bank loans and the fact that Leviev was implicated in the money-laundering activities uncovered by Sergei Magnitsky involving Manhattan real estate, it’s worth noting that the period when Justin Kennedy was Trump’s banker at Deutsche Bank would have overlap with the period when Magnitsky discovered Manhattan real estate was being used for a money-laundering. So if it turns out the anonymous source was referring to loans Trump received from Deutsche Bank co-signed by Russian oligarchs were loans from that pre-2009 period when Justin was Trump’s banker, that raise all sorts of fascinating new questions about Trump’s possible role in those Manhattan real estate money-laundering operations Magnitsky uncovered. It would also obviously raise some fascinating questions about Justin’s possible role in all that too.
Welp, it looks like that story broken by Lawrence O’Donnell on his MSNBC show Tuesday night about President Trump getting loans from Deutsche Bank that were co-signed by a Russian oligarch ‘close to Putin’ is already being retracted. Although the retraction isn’t a refutation of the story. Instead, Lawrence O’Donnell simply acknowledged that the story wasn’t technically ready for public discussion when he first brought it up on his show because it hadn’t yet gone through the verification standards. As O’Donnell put it on his show last night, “Last night on this show I discussed information that wasn’t ready for reporting. I did not go through the rigorous verification and standards process here at MSNBC before repeating what I heard from my source. Had it gone through that process I would not have been permitted to report it. I should not have said it on air or posted it on Twitter. I was wrong to do so.“ In fairness, if you watch the initial report where O’Donnell reveals this scoop at the beginning of the show he repeatedly emphasizes that it’s based on a single source and couches the story with phrases like “if true”, so it wasn’t being presented as a well-sourced story.
And note that, while O’Donnell does say, “Had it gone through that process I would not have been permitted to report it,” that statement doesn’t appear to indicate that MSNBC had subsequently determined that the story was inaccurate. O’Donnell goes on to say that they don’t know if the story is accurate at this point, saying, “Tonight we are retracting the story. We don‘t know whether the information is inaccurate. But the fact is, we do know it wasn’t ready for broadcast, and for that I apologize.“ That makes it sound like the reason he wouldn’t have been able to report on the story even after the story went through a verification process is probably because it was a story based on a single anonymous source.
So the question of whether or not Trump was getting his Deutsche Bank loans co-signed by foreign oligarchs remains a very open question. But this retraction also opens up some more interesting questions. First, was this another instance where an anonymous source claims some sort of explosive Trump tie in to Russia that never pans out? It certainly wouldn’t be the first time it happened. For example, there was the ‘Paul Manafort was caught visiting Julian Assange at the Ecuadoran embassy’ story in the Guardian that appears to have been disinformation being injected by an anonymous source. There was also the anonymously sourced report from McClatchy — claiming that Mueller’s team did indeed have evidence that the infamous Prague meeting between Michael Cohen and Russian intelligence really did happen — that appears to have been false and yet those reporters stood by the sources saying they had been important sources on other stories. And then there was the anonymously sourced Daily Beast piece asserting that evidence of the GRU being behind “Guccifer 2.0” was found when a GRU officer neglected to turn on his VPN when logging in to Guccifer 2.0’s Twitter account and this created a digital trail going back to the GRU’s headquarters. The claims in that story have never surfaced in the released Mueller report despite it being potentially compelling evidence. And those are just some of the examples of stories with explosive claims that appear to provide powerful evidence of a Trump-Kremlin connection that were based on anonymous sources that never panned out. Might this retracted story be another example of that pattern?
Also keep in mind another possibility: Trump himself was the source as part of a dirty trick designed to preemptively deflate a real story while discrediting the media. Recall that this already appears to have happened back in March of 2017 when David Cay Johnston was given a copy of Trump’s 2005 tax returns from an anonymous source. The tax documents were sent to Johnston in the mail and the source remained anonymous to Johnston himself. In the end, the story appeared to show Trump paid the Alternative Minimum Tax that year which, relatively speaking, could be worse new for Trump. At least he paid something. And it was that combination of the completely anonymous source of these 2005 documents and the fact that they weren’t particularly damning documents that led to much speculation over whether or not Trump himself mailed Johnston the documents as a means of shaping the narrative around his tax returns. Trump already had a history of assuming fake personas (John Barron) to feed reporters stories about himself which only fueled the speculation that the source for these tax returns was indeed Trump.
Given that history of both anonymous sources — likely connected to US law enforcement or intelligence — and Trump himself feeding reporters dubious stories that appear to designed to shape the narrative around Trump, we have to ask: If indeed O’Donnell’s retracted report ends up never panning out, was the anonymous source one of the same anonymous sources for the other anonymously sourced stories with explosive #TrumpRussia claims that now appear to be disinformation? Or was it Trump himself or someone close to Trump trying to preemptively discredit a real story they fear coming out?:
“Tonight we are retracting the story,” he added. “We don‘t know whether the information is inaccurate. But the fact is, we do know it wasn‘t ready for broadcast, and for that I apologize.“
The story hasn’t been debunked yet. But if it doesn’t eventually get confirmed it’s going to be hard to avoid suspecting it was another attempt to play the media and inject disinformation into the coverage of Trump and the broader #TrumpRussia story. Still, even if the story gets conclusively debunked we still won’t know who was behind it or what the intent was.
Although it’s worth noting that if this was indeed a disinformation piece originating for the anonymous sources of those previous apparent disinformation pieces relying on anonymous sources to make explosive #TrumpRussia claims, it would be rather sloppy disinformation attempt precisely because it was a single source. The probable reason O’Donnell said he wouldn’t have been allowed to report the story even if it had gone through the vetting process is because it was still just based on a single source. When we look at past stories of this nature that didn’t pan out there was always a reference to multiple anonymous sources, presumably because it’s required for a story to get published. So the fact that this was just a single anonymous source suggests it didn’t originate from the anonymous sources who pushed those previously questionable stories. Trump, on the other hand, probably wouldn’t be thinking about that detail if he turns out to be the source.
Also keep in mind that if this story was being pushed by Trump in order to preempt news he fears coming out, that would make David Cay Johnston’s speculation that non-Russian oligarchs (from Saudi Arabia, the UAE, Turkey, etc) may have also been co-signers for Trump’s loans a lot more likely to be correct. If Trump really was using Russian oligarch co-signers it seems like he would be unlikely to even bring up the topic even it was part of a disinformation operation. But if he was using non-Russian oligarch co-signers and feared that story would come out, pushing a story about Russian co-signers makes a lot more sense.
All in all, whether or not this story ends up being true or ends up being part of a disinformation operation, either scenario seems entirely plausible. That’s kind of the big story here. And also the meta-story.
President Trump gave his #UkraineGate impeachment acquittal ‘victory’ speech today. It was a speech that could be viewed as a kind of informal start of the 2020 campaign season, a campaign season that’s poised to largely be a national referendum on Trump himself. But given how the impeachment process played out in the Senate — with nearly all of the Republican Senators voting not to call witnesses and Mitt Romney making a surprise vote to convict Trump — of the interesting questions going forward is the extent to which the polarized nature of the impeachment process turns the 2020 election into a referendum on the broader Republican Party party and whether or not its willing and able to serve as a meaningful check on a Trump White House. In other words, one of the sleeper issues of the 2020 election could simply be the concept of checks and balances. Do Americans want an unchecked Trump for another four years?
At the same time, we can be confident that the right-wing is going to be using its full media might to turn the 2020 election into a referendum on ‘freedom vs socialism’, regardless of who the Democrats ultimately nominate. And it’s that combination of likely 2020 themes — Trump and his unchecked domination of the Republican Party vs fearmongering about ‘socialism’ — that makes the following article extra interesting in the context of the 2020 election. The article is about the profound intellectual sway Peter Thiel holds not only over today’s Republican Party, including Trump himself, but also his shaping of the future Republican Party. And it’s about Thiel’s ideological journey from a hard core libertarian to someone who is very much in favor or ‘Big Government’...when it suite him. As the article describes, Thiel has developed a vision of a strong, robust central government, but only as long as this strong central government is limited to promoting the interests of wealthy capitalists like himself or he gets to personally profit from the the government activity, like his investment in Palantir. As the article describes it, Thiel’s vision for a strong central government is remarkable similar to the government of China, except without China’s policies of helping average citizens. And Thiel’s vision for creating the kind of sociological ‘glue’ to hold a nation together is Trumpian-style blustery ‘American nationalism’ that appears to mostly involve feel-good chest-thumping and, ironically, attacks on China. It’s that seeming ideological incoherence — a libertarian in favor of a strong, authoritarian central government — that highlights the nature of the modern Republican Party’s definition of ‘freedom’: it’s freedom for fascist oligarchs to take over government and society and run it as they see fit, with no real checks on their power:
“It would be easy enough to chalk up the seeming contradiction of Thiel’s thought to opportunism or pettiness (he famously funded a lawsuit, in secret, to bankrupt Gawker, my former employer) or perhaps even a mind less ambidextrous than incoherent. But it’s worth trying to understand his political journey. Thiel’s increasing prominence as both an intellectual in and benefactor of the conservative movement — and his status as a legend in Silicon Valley — makes him at least as important as more public tech CEOs like Mark Zuckerberg. In fact, he still holds sway over Zuckerberg: Recent reports suggest Thiel was the most influential voice in Facebook’s decision to allow politicians to lie in ads on its platform. What Thiel believes now is likely to influence the next generation of conservative and libertarian thinkers — if not what the president believes the next day.”
Thiel is the guy not just whispering in the ear of President Trump. He’s guiding the next generation of conservative and libertarian thinkers. And he appears to have come up with an ideology that combines libertarianism when it comes to restraints on businesses with ‘conservative nationalism’ to provide the social cohesion necessary to maintain a strong state. Thiel approves of a strong central government action, but only as long as that action is done to maintain markets and support ‘growth’. Which is basically fascism: government should be powerful, but only as long as that power is used to benefit the businesses of powerful individuals like Thiel. Socialism reserved for the billionaire elites with no real checks on their power. That’s Trump’s/Thiel’s version of ‘freedom’:
It’s a remarkably Trumpian ideology. But it’s the ideology Peter Thiel, not Trump, is actively building for the long-term with the Republican Party. That’s why figures like Peter Thiel really should be part of the 2020 referendum on Trump: Thiel articulates the ideology that guides Trump’s presidency. And Thiel is kind of the ultimate example of the kind of ‘elitist’ the American public hates. He’s the kind of elitist who has repeatedly made clear his disdain for average people and repeatedly made clear that he’s perfectly comfortable buying off government for his own personal profit. And his life mission is to put himself outside the boundary of government control. He wants to run the government so he can be above it while he profits from it. Recall how we’ve already seen how Thiel refers to the Enlightenment as a period of “intellectual slumber and amnesia” and draws inspiration from Nazi legal scholar Carl Schmitt. That’s the guy guiding the intellectual foundation of Republican Party. While Trump may have his finger on the pulse of the average Republican voter, it’s Thiel who represents the beating heart of the actual Republican Party power elite. And it’s Thiel’s model of government that Trump is truly following: giving ‘conservative nationalism’ rhetorical red meat to keep the masses in line while actual policies are designed by and for the oligarchs. It’s that warped super-villain version of ‘freedom’ that really should be at the core of the 2020 national referendum on Trump and the Republicans. Freedom for the fascists like Thiel to capture society and run it as they see fit.
BuzzFeed has an new piece out on Peter Thiel that raises some interesting questions about the nature and scope of Thiel’s political activities going forward. The article describes a previously unknown July 29, 2016 dinner party of Alt Right figures hosted by Thiel with Kevin DeAnna as the featured guest. Thiel and DeAnna reportedly met for the first time at the party. Recall how DeAnna is one of the leading intellectuals on the Alt Right and a key figure in the long-standing push by the far right to mainstream itself within the conservative movement.
The article depicts that dinner party as perhaps the height of Thiel’s open embrace of the Alt Right in 2016 and his hopes that the Alt Right movement would serve to mainstream white nationalism and other far right ideas under a kinder, gentler veneer. The Alt Right was, in turn, apparently hopeful that Thiel could become “our George Soros.” The article goes on to describe how Thiel appears to have subsequently soured on the Alt Right and the Trump administration due to a series of high-profile incidents that caused Thiel to lose faith in figures like Richard Spencer and even Donald Trump. It sounds like the annual conference for Spencer’s National Policy Institute in late November 2016 where Spencer and other figures were photographed giving the Nazi salute and chanting “ail Trump” really pissed off Thiel and shook his faith in their ability to really mainstream the far right. Thiel apparently had a similar response to President Trump’s now notorious comments about “good people on both sides” in response to the violence at the August 2017 “Unite the Right” neo-Nazi rally.
So Thiel was quite hopeful that the Donald Trump and Alt Right were finally going to be able to renormalize white nationalism in America but those hopes were dashed relatively early on. At the same time, as the article describes, Thiel’s personal fortunes have exploded thanks to his close relationship with the Trump administration, in particular through contracts for Palantir. What does that mean regarding Thiel’s support for the Alt Right and the Trump administration going forward? Well, here’s where things get extra intriguing: Thiel political donations have seemingly been almost non-existent in the 2020 cycle. He gave some money to Kris Kobach’s Senate failed bid in Kansas but that’s it. So Thiel get concerned that his pet Nazis had made themselves politically unpalatable and his political donations have in turn publicly disappeared. Which raises the obvious question: so has Thiel actually stopped giving heavily to Republicans and Nazis or has he merely found ways to use the broken US campaign finance system to obscure his donations? And if he has simply obscure his political activity and since he obviously loves the ideas of the far right, we have to ask the followup question of how many Nazis are still getting that secret funding. These are the questions raised by reports about Thiel souring on Trump and the Alt Right, not due to their far right beliefs but for being too open about them:
“BuzzFeed News can reveal that in at least one instance during the summer of 2016, Thiel hosted a dinner with one of the most influential and vocal white nationalists in modern-day America — a man who has called for the creation of a white ethnostate and played a key role in an effort to mainstream white nationalism as the “alt-right.” And then Thiel emailed the next day to say how much he’d enjoyed his company.”
It’s completely clear is that Peter Thiel and Kevin DeAnna share a lot in common, ideologically speaking. What’s less clear is the extent to which Thiel is willing to openly espouse his beliefs. Back in 2016 the Alt Right had hopes that Thiel would become “our George Soros” and at the time it looked like that was going to happen. Then Trump won and Thiel became one of the most powerful people in the US government and a major beneficiary of government contracts. But the Alt Right and Trump himself proved to unable to successfully keep their Nazi sympathies contained and Thiel has allegedly soured on Trump and given almost no money to Republicans at all this year, at least not publicly:
Note that Thiel’s dispute with Trump’s coronavirus response was reportedly less about the actual policies and had more to do with Trump’s disastrous daily press briefings. Again, Thiel is disappointed in the quality of the propaganda, not the quality of policies.
So has Thiel truly backed away from his political patronage? Well, he clearly hasn’t soured on the Alt Right due to a difference in beliefs. As Curtis Yarvin — the figure behind the “Dark Enlightenment” concept — put it, “He’s fully enlightened, just plays it very carefully”:
But even before Trump was sworn into office the Alt Right leadership was dropping the mask and acting like open Nazis in celebration of their victory. Thiel’s hopes of seeing the Alt Right successfully sell themselves to the public as some sort of novel new political movement — as opposed to just whitewashed Nazis — was already being pissed away. And then Trump himself turned his alliance with the Alt Right into a major liability with his “both sides” comments in Charlottesville. Before the end of Trump’s first year in office Thiel’s dreams of a mainstreamed far right were apparently already being dashed:
And yet, as we’ve seen, Thiel’s personal fortunes exploded under the Trump administration, with Palantir’s revenue growing 49% in the first six months of 2020 alone. And as the article notes, a Biden victory probably won’t help Palantir’s prospects:
So has Peter Thiel really given up on the Republican Party and the Alt Right? That’s what those close to him are telling the press. But this is America in 2020 where if you’re a billionaire who wants to given millions or billions of dollars in secret campaign donations you can do that with ease. And that’s why the question of whether or not Peter Thiel has truly withheld his political donations in 2020 doubles as a question of how many Nazis he’s secretly funding. In particular Nazis running as Republicans.
There was an interesting follow up on the Brett Kavanaugh nomination debacle and the FBI investigation, or lack thereof, that took place in response to a number of sexual assault accusations:
For the past three years, Democratic Senator Sheldon Whitehouse has continued to pursue answers from the FBI over their handling of the near 4,500 tips sent to the FBI in relation to Kavanaugh’s personal history after the FBI create a “tip line”. We got some answers this week. The kind of answers we should have expected. It sounds like the FBI’s “supplemental background investigation” into Kavanaugh was conducted at the direction of the Trump White House and that the most “relevant” of the tips were referred back to White House lawyers. In other words, there was no FBI investigation of Brett Kavanaugh’s background:
“And it seems he has finally gotten at least some answers. On Wednesday morning, Whitehouse’s office released a June 30 letter from FBI Assistant Director Jill C. Tyson. The letter is a response to an even older request sent by Whitehouse (and Sen. Chris Coons) asking similar questions about the supplemental background investigation—this one, sent to the FBI in August 2019. Among other revelations, Tyson’s letter indicates that the FBI’s supplemental investigation happened at the direction of the White House, that the most “relevant” of the 4,500 tips the agency received were referred back to White House lawyers in the Trump administration, and that in the days of the follow-up investigation, 10 people were interviewed (it doesn’t say this, but other reporting has confirmed that neither Christine Blasey Ford nor Kavanaugh were among these 10 people). The letter clarifies that this was a supplemental background check, not a criminal investigation because that is what was sought by the White House counsel’s office.”
Who got to ultimately receive the information from these tips and make a determination about Kavanaugh’s fitness to serve on the bench? Trump White House lawyers. Some might consider that a conflict of interest. Especially since the questions about Kavanaugh’s fitness were limited to accusations of sexual assault. They also involve questions about what happened to tens of thousands of dollars in credit card debt that mysteriously vanished in 2016. The White House’s lawyers were presumably vetting any information related to that too:
Who paid off that tens of thousands of dollars in credit card debt that mysteriously disappeared? We have no idea. We also have no idea if the FBI knows the answer to that question. But what we do know now is that if the FBI did obtain an answer to that question it would have exclusively given those answers to the Trump White House lawyers, who would be the people to determine if that information posed a problem.
It’s also important to keep in mind that it’s not just the case that the Trump team of White House lawyers were given the power to determine how that ‘supplement background investigation’ information ended up being used in making an assessment about whether or not Kavanaugh was fit for the bench. It’s also the case that this same group of people now has the power to decide whether or not to ever release this information in the future. In other words, that team of Trump White House lawyers — and anyone else they shared this info with — will have very real blackmail power over Kavanaugh. He’s presumably going to be serving on the bench for decades to come. If you’re a Supreme Court justice you really do have the option of changing your mind and judicial philosophy. But you’re probably a lot less likely to do so when a team of lawyers from one of the most corrupt administrations in history knows the stuff that should have kept you off the bench. Especially if that’s part of the reason they put you there.
Following up on the fascinating new biography of Peter Thiel depicting him as a paranoid power mad, here’s a pair of articles describing the explosion of Thiel’s influence inside the Republican Party and the broader conservative movement in recent years:
First, here’s a Washington Post article from last month about Rumble, the new YouTube rival started in 2013 that appears grew from 1 million to 30 million active users over the past year. The company said in May it had received a significant investment from JD Vance’s Narya Capital and Peter Thiel. So Thiel is getting into the ‘Alt’ social media market. Keep in mind that Vance is running in the GOP Senate primary for a Virginia Senate seat and has been a recipient of a reported $10 million in campaign contributions from Thiel this year.
But Rumble isn’t focused exclusively on conservative audiences. As part of an effort to show the platform can be friendly to non-conservatives, Rumble signed deals with Glenn Greenwald and former congresswoman Tulsi Gabbard paying them to produce content on the platform. How much are they being paid? We aren’t told other than that it’s in the “mid-range six figures”.
And as we’ll see in the second except below in a New Yorker article from back in May, it’s Peter Thiel who party luminaries and 2024 hopefuls like Mike Pompeo are turning to in formulating their own ideas of what the future holds and how to prepare for it. Thiel has become one of the top thought leaders for the Republican Party and that influence is only going as he throws more and more money around. That’s part of the significance of the story of Rumble. It’s the kind of story that hints at a lot more similar stories are on the way in coming years as the broader story of Thiel’s post-Trumpian capture of the GOP plays out:
“The company said in May it had received a significant investment from Narya Capital, a fund co-founded by “Hillbilly Elegy” author J.D. Vance, and the billionaire venture capitalist Peter Thiel, an early investor in Facebook and a co-founder of the government-contracting giant Palantir Technologies.”
Rumble has potential. At least that’s one interpretation of the “significant investment” made by Thiel and Vance. They’re investing in a company they see as having potential. Of course, when we’re talking about a politically-charged social media platform, there are other obvious reasons for a significant investment that have nothing to do with future profits. Like simply investing in influencing the conservative movement.
But as Glenn Greenwald and Tulsi Gabbard also make clear with their paid presences on the forum, Thiel and Vance aren’t just buying influence with conservatives. The political ‘alt’-space occupied by Greenwald and Gabbard — friendly fellow travelers of the ‘Alt Right’ — is ripe for influence peddling of this nature. A few “significant investments” here and there and who knows how many people are going to end up on Thiel’s payroll:
It was 2016 when we saw Thiel jump into the political realm in a big way. So just how influential has Thiel grown inside the conservative movement over the past 5 years? That brings us to the following New Yorker piece from back in May about precisely that kind of development: While Donald Trump may be the present-day incarnation of the conservative movement, it’s looking more and more like top Republican are looking to Peter Thiel to provide the vision for the party’s future. A future not entirely unlike its Trumpian present. Thiel has proven to be a master of the Trumpian tactic of channeling his elitist anti-government agenda into a populist anti-government shtick. But it’s not just Thiel’s vision for the future of the Republican Party that has GOP luminaries looking towards Thiel for guidance. It’s Thiel’s sense of impending doom for civilization — doom created by stifling Big Government and social constraints imposed on great visionaries like Thiel who only want to bring the world great things like flying cars — that has captivated the party and the movement. Thiel has become the GOP’s unofficial End Times prophet, and if that apocalypse is going to be avoided, or embraced, they’re going to have to follow his lead:
“Most of us, these days, operate downstream from one billionaire or another, and the most interesting and destabilizing parts of the Republican Party are operating downstream from Thiel, whose net worth Bloomberg recently estimated at more than six billion dollars. Eric Weinstein, who coined the term “intellectual dark Web,” is the managing director at Thiel Capital. (“Man of many hats,” Thiel said not long ago, when asked to describe Weinstein’s role within his empire.) In 2015 and 2016, Thiel made a critical three-hundred-thousand-dollar donation to the campaign of Josh Hawley, who was then running for Missouri attorney general; once in office, Hawley had to answer questions about whether his announcement of an antitrust investigation into Google had anything to do with Thiel, an avowed opponent of the search giant. This year, Thiel has given ten million dollars to an outside group funding the Ohio Senate campaign of J. D. Vance, the venture capitalist who became famous as the author of the 2016 memoir “Hillbilly Elegy,” and a voice on behalf of the parts of America that globalization had left behind. (He is now a regular on Tucker Carlson’s Fox News show.) Thiel donated ten million dollars to the Arizona U.S. Senate campaign of his own aide, Blake Masters, who co-authored one of his books and has mostly worked for Thiel since he graduated from Stanford Law, a decade ago; he gave roughly two million dollars to the failed 2020 Senate campaign of the hard-right anti-immigrationist Senate candidate Kris Kobach. There is no obvious party line among the Thielists, but they tend to share a couple of characteristics. They are interested in championing outré ideas and causes, and they are members of an American élite who nevertheless emphasize, in their politics, how awful élites have been for ordinary Americans.”
If you throw enough money around in politics at some point you’re going to become the de facto leader. And right now, Peter Thiel is positioning himself to be that de fact leader. Sure, there are other individuals like Charles Koch who still give more politically. But like Trump, Koch’s days are number. We’re due for a changing of the guard on the American Right and Peter Thiel appears to be the guy in position to become the next Charles Koch. The next person with the vision and cash the rest of the party can follow:
And what is that vision? A vision where the greatest impediment to humanity are the checks on the power and influence of capitalist supermen like Peter Thiel. If only we could recognize them for the noble kings they truly are, everything would be better. A fascist superman vision of tomorrow, a most appropriate follow up to Trump:
Will anyone arise with a competing vision for the Republican Party’s future? It’s possible, but right now it’s hard to see who is going to replace Thiel as the next leading light for the GOP. He’s made the investments and he has the fascist superman template vision the party clearly craves. If the Trump experience has taught us anything its the enduring appeal of the fascist superman persona in politics. That crap sells. And it’s all Thiel is peddling.
At the same time, there’s a rather significant difference between the fascist superman template of Donald Trump’s politics and the fascist superman template of Peter Thiel: Trump is following a Mussolini-style in-your-face fascist superman template. He adores the crowds. Thiel, on the other hand, has more the temperament of Karl Rove. A behind-the-scenes operator who wants to the power, but not necessarily the public glory. We’re dealing with very different kinds of dark psychologies in these two figures. The rise of Trump has demonstrated a robust appetite for the high-profile public fascist superman persona. Trump effectively captured the party with that persona in the matter of a year. But that was largely because Trump capture the hearts and minds of the GOP base. He was directly communicating with the masses.
And while Thiel certainly deploys similar kinds of ‘populist’ rhetoric focused on rage against ‘liberal elites’, there’s no indication that Thiel himself can capture the hearts of minds of the GOP base on the same scale as Trump. Thiel just doesn’t have Trump’s powers with crowds and the public. What Thiel has captured is the hearts and minds of party elites like Mike Pompeo.
So person who is increasingly position to be the future leader of the GOP is like a weird blend of Trump, Rove, and Koch. He has the vision, money, and fascist superman vision the party loves. But he doesn’t necessarily have the crown control, which was the true secret to Trump’s capture of the party. He’s got a very real shot on capturing the GOP, but it’s not secured. Someone with the Trumpian ability to capture hearts and minds could steal it all away. That’s part of what makes the rise of Peter Thiel something to watch: he’s the leading candidate to lead the party in the future, but he’s not a perfect candidate and he really, really, really hates competition. And for all his growing influence, he’s still got plenty of competition.
Here’s another look at the seemingly ever-growing influence of Peter Thiel over the future of the Republican Party:
First, recall that fascinating September 2020 BuzzFeed piece describing how Thiel appeared to sour on his open sponsorship of the ‘Alt Right’ following Donald Trump’s victory and the various instances of Alt Right figures engaging in openly racist antic. Thiel was apparently upset they couldn’t successfully put a kinder, gentler face on white nationalism. That apparent queasiness over overtly racist public rhetoric is part of what makes the following report from The Informant last month about Arizona Republican Senate candidate Blake Masters so fascinating.
As we’ve seen, Masters happens to be chief operating officer for Thiel Capital and president of the Thiel Foundation. Thiel and Masters even co-wrote a book where they elevated venture capitalists to the role of superman who really are truly different and better than everyone else. And Thiel has already donated $10 million to Masters’s senate campaign. The two are clearly extremely closely aligned.
So given Thiel’s apparent hesitancy over the open embrace of white nationalism, it’s rather interesting to learn what type of candidate Masters is turning out to be. The kind of candidate who is clearly intent on out-‘dog-whistling’ the rest of the GOP primary pack. Yes, Masters has even earned the praise of VDARE for his boldness in decrying Critical Race Theory (CRT) as an “anti-white racism”. As an anonymous VDARE author wrote, “As for CRT, pretty much every Republican denounces the racial toxin, but very few call it anti-white,” the blog post said. “Masters is different.” Yes, the candidate most closely aligned with Peter Thiel has managed to distinguish himself from the rest of the GOP by being the most “different”. Different by sounding the most like VDARE:
“Last month, Masters announced he’s running for the Republican nomination for U.S. Senate in Arizona, hoping to unseat Democrat Mark Kelly in 2022. His effort is being backed financially by Thiel, who gave $10 million to a super PAC set up to support Masters.”
There’s going to be not distancing from Masters for Thiel. If Masters ends up imploding his campaign due to too many racist statements there’s no way Thiel can avoid the splatter. And yet this is 2021, when it doesn’t actually appear to be possible for GOP primary candidates to embrace VDARE too openly, which is presumably the reason Masters is going to far right conferences and talking about “anti-white racism”. He wants to win the primary and that’s how you win a GOP primary in 2021. By getting the VDARE endorsement:
So has Peter Thiel had a change of heart on the political expediency of open white nationalism? A lot has changed in the GOP between 2017 and 2021. It’s a much more overtly white nationalist party just four short years later. White nationalism wrapped in a blanket of narratives about QAnon, stolen election, and China hate. And as we’ve seen, the embrace of the CRT is a strategy currently endorsed and promoted by the Koch network of right-wing thank-tanks. The white nationalist grievance politics at the core of the “anti-white racism” CRT narrative really captures the mood of the party, even more now than in 2017. Trump’s defeat, and the stolen election narrative around it, weirdly solidified the VDARE worldview in the GOP. So whether or not Thiel would prefer that GOP openly embrace the politics of white nationalism, that’s what happened anyway and he had better deal with it. And as we can see with the candidacy of Blake Masters, dealing with it isn’t going to be a problem for Thiel.
Here’s a pair of Peter Thiel-related stories that point towards growing influence for the billionaire in Germany and Austria:
First, the former right-wing chancellor of Austria, Sebastian Kurz just made a politics-to-tech career pivot. He’s now a “global strategist” at Thiel Capital.
Recall the profound role Kurz has played in mainstreaming the Austrian far right. This is the same politician who was considered a rising political star not long ago based in large part on his ability to successfully ward off the rise of Austria’s far right by successfully diluting and co-opting anti-immigration sentiments. Kurz then formed a coalition government with the far right FPO as a junior partner in 2017, creating serious concerns with Austria’s intelligence partners over the prospect of Nazi sympathizers taking over Austria’s intelligence agencies. But in the end, the coalition imploded following the ‘Ibiza affair’ scandal that damaged his FPO partners, forcing Kurz’s party to form a new coalition with the Greens in 2019. Note that Kurz literally called immigration as great a threat as climate change in 2020, so if it seemed like a coalition with the Greens was an odd fit that was a good guess. In the end, the Green coalition partners began calling for Kurz to resign back in October following investigations into bribery and corruption allegations involving Kurz’s rise within his own party. Kurz ended up resigning days later.
That’s the context of Peter Thiel’s decision to hire Kurz as a “global strategist”: it’s a career move that just happens to follow Kurz’s fall from grace as Austria’s right-wing political star.
The second Thiel-related story also includes a Kurz angle: it turns out Thiel was the unexpected recent recipient of a German award back on October 7. The Frank Schirrmacher prize, which honors intellectuals, artists and others for “outstanding achievements in understanding our current events.” The Frank Schirrmacher Foundation was established in Switzerland in 2014 to maintain his legacy as one of Germany’s leading intellectuals. Oh, and it turns out it was none other than Sebastian Kurz who delivered the laudatory speech during the award ceremony. He ended up resigning under a cloud of scandal days later.
But here’s perhaps the most chilling part of this story: when we look at the statement put out by the Schirrmacher Foundation explaining its selection of Thiel, it states that by “disregarding prohibitions on thinking, he provides intellectual impulses and thus enriches the current socio-political discussions in a wide variety of fields.” That’s basically polite language for for describing things like the ‘intellectual dark web’ and the ‘Dark Enlightenment’. So the intellectual God Father of the ‘Alt Right’ was just given one of German civil society’s highest awards in celebration of his championing of the Dark Enlightenment, with Austria’s scandal-plagued far right-friendly Chancellor delivering the accolades. It’s hopefully not the legacy Schirrmacher was hoping to uphold.
Ok, first, here’s an article about Kurz’s new job as one of Thiel’s “global strategist”. Who knows what exactly he’ll be strategizing about, but given that the scandal that ended his political career involved bribery and media corruption in order to secure positive coverage, Kurz would probably be a pretty good choice for any jobs that involve a strategy of creating manufactured media coverage:
“The 35-year-old former chancellor will become a “global strategist” for the rightwing billionaire’s business, Thiel Capital, said one person familiar with the matter.”
So does Sebastian Kurz actually have anything to add to Thiel Capital’s ‘global strategies’? In other words, is this a real investment in Kurz’s human capital as a productive financier? Or is this a political investment? An investment in Austria’s political scene in the form of providing a golden parachute for a popular, if troubled, politician? It all looks sleazy, but the particular nature of the sleaze isn’t entirely clear.
But as we can see with the following article about Thiel being awarded the Frank Schirrmacher prize, Thiel’s friendly relations with Kurz isn’t a secret. Kurz was literally days away from resigning under a cloud of scandal when he gave the speech lauding Thiel at the award ceremony:
“Another point of criticism was that Austrian Chancellor Sebastian Kurz, who is currently under investigation for media bribery, was chosen to deliver the laudatory speech.”
Again, Kurz’s speech at this October 7 ceremony was literally days before Kurz resigned in scandal. A few months later, Kurz is going to work for Thiel. It’s a small corrupt world.
But note the truly chilling description given by the Schirrmacher Foundation explaining the rationale for awarding Thiel this prize: by “disregarding prohibitions on thinking, he provides intellectual impulses and thus enriches the current socio-political discussions in a wide variety of fields.” In other words, this award is a celebration of Thiel’s embrace of the ‘Red Pill’ and ‘Alt Right’ worldviews. The Foundation’s language was just a polite way of phrasing that underlying Alt Right sentiment:
Keep in mind that Frank Schirrmacher died in 2014. It’s not as if the guy lived in a different age. It shouldn’t be that difficult for those who knew him to assess whether or not he would have actually approved of awarding Thiel this prize. And those who knew him seem to be claiming he would be quite appalled. So why did the Frank Schirrmacher Foundation award this prize to someone who seems to be the antithesis of the civil society-building legacy Schirrmacher was trying to preserve? That’s one of the big questions raised by this story. We’ve long watched Thiel accrue power and influence someone with his character should have never been allowed to achieve. And now he’s being given civic awards celebrating that awful influence. It’s a dark trend.
Now that Elon Musk’s purchase of Twitter has Alt Right fellow travelers tweeting with glee, it’s worth noting a recent piece in Vanity Fair about the growing influence of what is now being termed the New Right within the US conservative movement. Because as the article makes clear, the ‘New Right’ is basically just a rebranding of the ‘Alt Right’. A rebranding and further mainstreaming of the Alt Right within the conservative movement.
As we’re going to see, it’s none of other that Curtis ‘Mencius Moldbug’ Yarvin who is scene as the ideological godfather of this New Right. And Yarvin is still pushing the memes around “The Cathedral”, which is basically a meme that attempts to define the entirety of the US political and media establishment as a ‘liberal’ construct dominated by known left-wing government bureaucrats, academics, and Big Tech billionaires. Conservatives have long had zero power and are basically a subjugated group under this worldview. It’s like a generalized version of the narratives around Critical Race Theory that have taken hold on the right.
One of the primary gatherings for this movement is the annual National Conservatism Conference, attended this year by two GOP senate candidates who have taken pains to associate themselves with this strain of conservatism: JD Vance and Blake Masters. As we’ve seen, both candidates are very close to Peter Thiel and have receive heavy financial backing from Thiel. As we’ll see, it turns out Masters and Vance aren’t just close to Thiel. They’re also friends with Yarvin. And as is evident in the following long Vanity Fair piece, they’re apparently more than happy to share with the world the fact that they are members of this New Right and friends with figures like Yarvin.
On one level, it’s not particularly surprising Masters and Vance are willing to be so open with the media about their close association with figures like Yarvin and this rebranded Alt Right movement. Such associations are only going to be helpful in the context of a competitive GOP primary. Recall how Masters — the chief operating officer for Thiel Capital and president of the Thiel Foundation — recently won the praise of VDARE with his anti-immigrant stances. Also recall how both Vance and Masters have been aggressively pushing narratives about stolen elections (with Mark Zuckerberg’s help, LOL!). JD Vance just received Donald Trump’s endorsement in the GOP primary. Being New Right is kind of the ‘new cool’ on the right.
And that’s really the larger story here: we’re now at a point where what were clearly Alt Right ideas just a few years ago are being rebranded as a kind of rebellious ‘anti-CRT’ conservative ‘new cool’ and this appears to the core of the PR thrust going on here. It’s the latest attempt to channel white anxiety and political correctness fatigue and use that to effectively mainstream Alt Right ideas as a patriotic rebellion against oppressive left-wing intellectual totalitarianism. And this movement is being led by a group of wealthy conservatives with Ivy League degrees, bankrolled by billionaires like Thiel, pushing the idea that the culture war complaints they’re fixated on is the class war in America. That’s literally the language JD Vance uses when he asserts that “culture war is class warfare”. One one level, this is all highly predictable and basically an extension of the trends we’ve seen for years. But on another level it’s hard not to be disturbed by the fact that this absurdly cynical narrative financed by some of the wealthiest and most power people in the US is probably going to be the dominant right-wing narrative across the media-landscape for years to come.
Oh, and JD Vance also disclosed that he feels a new Caesar-like figure who assumed semi-dictatorial powers will be necessary to purge the US establishment of its liberal infection. Yep. Vance thinks the next GOP president needs to fire every left-wing in government and replace them with “our people”, which sounds a lot like Steve Bannon’s calls for the creation of an army of bureaucratic “shock troops” ready to man all posts in government. And when the courts intervene on these mass firings, Vance suggests this president should just ignore them and proceed. Vance then predicted Trump will run again in 2024. So it was basically a preemptive endorsement of Trump’s next insurrectionary scheme. Don’t forget, he’s been trying to get Trump’s endorsement which he only recently got a couple days ago. It’s a crucial part of the context of the ongoing mainstreaming of the Alt Right: this mainstreaming is now taking place in the context of the GOP’s open embrace of insurrectionary politics, so ‘dropping the mask’ is implicitly going to entail endorsing the next insurrection:
“Political reporters, at least the ones who have bothered to write about Yarvin, have often dismissed him as a kook with a readership made up mostly of lonely internet weirdos, fascists, or both. But to ignore him is to underestimate how Yarvin’s ideas, or at least ideas in conversation with his, have become foundational to a whole political and cultural scene that goes much deeper than anything you’d learn from the panels and speeches at an event like NatCon. Or how those ideas are going to shape the future of the American right, whether or not Vance and Masters win their Senate primaries. I introduced myself, and soon Milius and I were outside smoking as Yarvin and I chatted about whether he’d be willing to talk to me on the record.”
It’s sad but true. You can’t really understand the contemporary conservative movement in the US without appreciating the growing influence of Curtis Yarvin. Influence that has been growing for well over a decade. The man who was once the godfather of the “Dark Enlightenment”, which morphed into the ‘Alt Right’ by 2015, has moved on to more mainstream status. It’s no longer Alt Right. Mencius Moldbug’s concepts of “The Cathedral” — the term for the collage of bureaucracies of academia and the media influencing American life — are now mainstream with conservatives. That’s the New Right: the successful mainstreaming of Alt Right ideas. Curtis Yarvin’s ideas, in particular:
And it’s important to recognize the levels of deception and misdirection embedded in these ideas. As JD Vance put it himself, “culture war is class warfare”. It’s literally a group of wealthy Ivy League educated conservatives pushing a narrative about liberal academics waging a class war against average Americans. As JD Vance put it, “culture war is class warfare.” A wealthy hedge fund millionaire telling voters that some vague indirect influence by academics represents the class war that’s been waged in the US for the last four decades. It’s that grossly cynical:
But perhaps the most chilling part of this report was the overt warning we got at the end from JD Vance about what Vance feels is going to be required to ‘save’ the US: a national renewal brought about by a conservative president assuming dictatorial powers and overruling the courts in a push to purge the US government of anyone who doesn’t share this New Right worldview:
Is Trump going to be elected God King in 2024 on a mandate of purging the government of all liberals and installing an army of New Right reactionaries? We’ll see. Steve Bannon is presumably going to be building on his army of bureaucratic ‘shock troops’ either way. But regardless of which future Republican president ends up leading that army, it’s pretty clear at this point that it’s the ideology of Mencius Moldbug they’re going to be following. Which isn’t really an ideology as much as it’s an elaborate ruse. The kind of elaborate ruse that’s so stupid it’s bound to work. At least until they regain power and the public inevitably realizes they elected a bunch of lunatics. Which brings us back to the openly insurrectionary fervor of this movement. It points towards the one key difference between the past and current phases of the mainstreaming of ‘Alt Right’ ideas: It used to be rather tricky for reactionary conservatives to run on a ‘democracy is too broken to work’ platform. Now it’s basically a requirement for winning your primary.
It’s time for credit where credit is due: You have to hand it to Peter Thiel. The leading fascist in contemporary US politics has somehow managed to avoid any direct association with the January 6 Capitol insurrection. With the first round of congressional televised hearings on the January 6 Capitol insurrection now complete, Thiel’s name has remained largely divorced from the entire Jan 6 story, despite his deep involvement in financing and backing exactly the kinds of politicians who backed and fomented the insurrection. And yet it’s hard to imagine Thiel wasn’t entirely on board with the insurrection agenda and holding onto power at any cost.
So given that the US’s leading fascist has largely avoided public scrutiny in these Jan 6 investigation, here’s a recent piece on Thiel by John Ganz that reminds us of a few key facts we should keep in mind about Thiel’s brand of fascism that really need to be kept in mind as the GOP transitions into a pro-insurrection party: Thiel’s libertarian-branded style of fascism uses ‘Freedom!’ as its rallying cry. Freedom for capitalists, specifically. Hence Thiel’s notorious 2009 essay where he called democracy and capitalism incompatible. True freedom — for a specific group — comes at the cost of authoritarianism for everyone else. Freedom for capitalists/warlords. That’s Thiel’s politics. The kind of politics that is highly sympathetic to narratives about Democrats being a bunch of freedom-hating Marxists.
But there’s another aspect to the kind of fascist politics Thiel advocates and it’s been a feature of fascism since it’s inception: the idea that the fascist state is just at temporary emergency measure required to save the capitalists from the threat of revolutionary Marxists. It’s just temporary emergency authoritarianism that will only be needed to deal with the communist threat until that threat is extinguished. That’s the promise. A temporary emergency brutal crackdown on perceived political enemies who represent an existential threat to the established order. Which sure sounds a lot like a justification for Jan 6 and futures insurrections.
Finally, Ganz points out a fascinating personal fun fact about Thiel’s fascist pedigree: the South African uranium mine Thiel’s father helped manage during childhood Thiel’s was part of South Africa’s clandestine nuclear weapons program. It’s the kind of family fun fact that suggest the Thiel family was far more deeply connected to international white supremacist networks that current appreciated.
That’s all part of the context of Thiel’s complete avoidance of any direct association with the Jan 6 Capitol insurrection: the insurrection was basically a manifestation of the ‘existential emergency’ fascist politics Thiel has long embraced, possibly all the way back to his childhood:
“Where to begin? First of all, yes, Thiel’s libertarianism is about freedom—freedom for him and people like him, the entrepreneurial elite of the capitalist class. He’s openly antidemocratic. In an essay for the Cato Institute, Thiel once wrote, “I no longer believe that freedom and democracy are compatible…” Why? Because if you empower the demos, they will eventually vote for restrictions on the power of capitalists. and therefore, restrictions on their “freedom.” He continues, “Since 1920, the vast increase in welfare beneficiaries and the extension of the franchise to women — two constituencies that are notoriously tough for libertarians — have rendered the notion of ‘capitalist democracy‘ into an oxymoron.” In that 2009 essay, Thiel imagines a kind of futurist program of utopian projects “beyond politics” in cyberspace or “seasteading,” but it’s clear now he’s returned to believing in politics, or at least an anti-political form of politics.”
Peter Thiel isn’t lacking in mystery. But his politics isn’t one of those mysteries. He’s a libertarian fascist.
But how can someone simultaneously adopt a political ideology that exalts freedom while simultaneously manifesting the authoritarian politics of fascism? Again, it’s not mystery. Libertarianism and fascism are entirely compatible, just as proclamations of the primacy of ‘freedom’ are in no way opposed to authoritarian politics. It’s the whole ‘freedoms vs rights’ contrast that the US political culture routinely ignores: unrestricted freedom includes the freedom to dominate, enslave and kill if desired. That’s why any logical calls for unhindered freedoms should always specify the particular group that is going to receive these unrestricted freedoms, because only a subset of a population can truly be granted unrestricted freedom. Everyone else is effectively a serf. The only way to share freedoms across a population is by balancing those freedoms with rights. Rights that get in the way of unalloyed capitalist domination and therefore need to be done away with under the banner of ‘Freedom!’.
And as the piece points out, there’s a couple other aspect to the irrational nature of fascist ideology that can’t be ignored when assessing the political ambitions of someone like Thiel: Fascism has never been a coherent ideology. As the fasces symbol itself represents, fascist ideologies tend to be a kind ‘bundle-think’ cobbled-together to achieve the desired goals of the movement. It’s not supposed to make sense because it’s not intended to make rational appeals. Fascist thought is designed to rouse the masses into action against the movement’s enemies and whip up a sense of emergency. A sense of emergency that is absolutely central to the fascist movement, where extreme actions can be ‘temporarily’ taken to ‘save’ the nation.
That’s all part of the context of the new pro-insurrection MAGA Republican Party: January 6 was fascist ’emergency response’ to a perceived ‘existential threat to the nation’. It’s why Peter Thiel’s fascist politics are far bigger than Thiel: Jan 6 was a manifestation of Thiel’s fascist politics. The fascist politics of ’emergency rule’ are clearly widely held within the contemporary conservative movement:
And then get to this fascinating fun fact about Thiel’s family background: the South African uranium mine his father helped lead was part of South Africa’s clandestine nuclear weapons program. It’s quite a family pedigree in terms of international fascist politics:
And don’t forget the connections laid out in Martin Borman: Nazi in Exile between the Bormann group and a joint nuclear weapons development program between South African, West Germany, and Argentina following the post-war discovery of uranium in Argentina. So when we learn that Thiel’s dad was one of the lead engineers in what amounted to a clandestine South Africa nuclear wapons program, we have to ask: Was Peter Thiel basically raised to be a kind of next-generation Bormann Group fascist?
We’ll likely never really be able to answer that question with certainty given the lack of comprehensive information on his childhood. That part of his background is a mystery. Just as it’s kind of a mystery as to how he managed to avoid any direct connection with a plot to overturn the election that he undoubtedly deeply supported. But the fact that he’s lived a life that would be consistent with that of someone raised to be an elite fascist operative is not one of Peter Thiel’s fascist mysteries. At least not for those with eyes to see.
With all of the questions about whether or not Donald Trump still represents the future of the Republican Party, here’s a pair of articles that asks a related question: so who is going to replace the Koch Network of mega-donors? Don’t forget that David Koch died in 2019 and his older brother Charles isn’t getting any younger. So what happens to the conservative mega-donor infrastructure and major Koch-created entities like DonorsTrust when Charles finally joins David? Well, as the NY Times reported back in April, we at least partially have answer that question: new dark money entities are going to step in to fill that space.
One of these new entities is the Chestnut Street Council formed by CPAC organizer Matt Schlapp. Recall how Schlapp recently had to dismiss outcry over CPAC’s decision to invite Viktor Orban to next week’s CPAC conference in Dallas following Orban’s denouncement of interracial marriage. According to Schlapp, donors approached him after the 2020 election “expressing frustration with the more normal routes for funding political operations.” It’s a rather ominous rationale for a new dark money group given that this was all in the wake of the January 6 Capitol insurrection and given all of the remaining questions about the scale of the plot and how it was financed. So we shouldn’t be surprised to learn that one of the figures invited to speak at a Chestnut Street Council event in February of this year was none other than Caroline Wren, a figure who played a key role in facilitating the financing of the ‘Stop the Steal’ Jan 6 rally. Recall how Wren was a deputy to Donald Trump Jr.’s girlfriend, Kimberly Guilfoyle, at Trump Victory, a joint presidential fundraising committee during the 2020 campaign. Wren was, in turn, hired by Publix heiress Julie Jenkins Fancelli to organize the Stop the Steal rally with $300,000 of Fancelli’s money. Fancelli’s financing of the rally was reportedly facilitated by Alex Jones. Also recall the last-minute turmoil inside in the Stop the Steal rally organizing when Wren and Guilfoyle attempted to get Roger Stone, Alex Jones, and Ali Alexander put on the speakers list. When Jones and Alexander left the rally early (to begin the march to the “Wild Protest”), it was Wren who escorted them away as they prepared to lead the march on the Capitol. So one of the key financiers for the insurrection plot was invited to speak at a new dark money group formed, in part, out of desire for additional routes for ‘funding political operations’. Yikes.
And then we get to the other new dark money entity recently created with the generic goal of ‘building a conservative ecosystem’: The Rockbridge network, financed by Peter Thiel and Rebekah Mercer. The founder of Rockbridge, Chris Buskirk, is a relatively conservative pundit who even has a NY Times op-ed column. Buskirk also founded a conservative media outlet, American Greatness, and is a self-proclaimed super-fan of Roger Ailes. As we’re going to see in the Media Matters report on American Greatness, it’s the kind of outlet Ailes would probably have approved of, where far right memes and racist tropes are delivered with a ‘mainstream’ patina. Memes that includes all sorts of election denialism pushed by senior editor Julie Kelly. Other American Greatness contributors include the two central organizers of the plot to overturn the election 2020: Cleta Mitchell and John Eastman.
And that’s a glimpse at how the conservatives mega-donors have responded to the 2020 election results and subsequent investigation into the insurrection plot: new insurrection-friendly dark money entities are being created by the network of conservative king-makers poised to replace Koch network:
“The coalition, called the Rockbridge Network, includes some of Mr. Trump’s biggest donors, such as Peter Thiel and Rebekah Mercer, and has laid out an ambitious goal — to reshape the American right by spending more than $30 million on conservative media, legal, policy and voter registration projects, among other initiatives.”
A whole new ‘coalition’ formed by Peter Thiel and Rebekah Mercer focused on shaping elections. If that kind of news doesn’t send a chill down your spine you’d have to be an invertebrate. Or a fascist. And the Rockbridge Network is just one of a number of new conservative dark money organizations that’s suddenly popped up in the post-2020 environment. There’s also the Chestnut Street Council, organized by Matt Schlapp. Recall how Schlapp, who is also an organizer for CPAC, recently had to dismiss outcry over CPAC’s decision to invite Viktor Orban to next week’s CPAC conference in Dallas following Orban’s denouncement of interracial marriage. Keep in mind that David Koch died in 2019 and Charles Koch only has so much time left to spend trashing the Earth before he leaves it. In other words, the clock is ticking for the Koch mega-donor network. That’s part of the context of these new dark money entities: it’s happening not long before we can expect a major vacuum on the right’s mega-donor infrastructure following the inevitable death of Charles Koch. He’s going to kick it any year now, and when he does groups like the Rockbridge Network and the Chestnut Street Council will be ready to fill that void. That’s part of what makes this report so ominous: it’s a reminder that the influence of figures like Peter Thiel and Rebekah Mercer are only going to be growing inside the conservative movement in coming decades:
And as we should expect, these new dark money organizations appear to be very insurrection-friendly. For example, the Chestnut Street Council included a presentation from Caroline Wren, a key figure in the events leading up to January 6. Recall how Wren was a deputy to Donald Trump Jr.’s girlfriend, Kimberly Guilfoyle, at Trump Victory, a joint presidential fundraising committee during the 2020 campaign. Wren was, in turn, hired by Publix heiress Julie Jenkins Fancelli to organize the Stop the Steal rally with $300,000 of Fancelli’s money. Fancelli’s financing of the rally was reportedly facilitated by Alex Jones. Also recall the last-minute turmoil inside in the Stop the Steal rally organizing when Wren and Guilfoyle attempted to get Roger Stone, Alex Jones, and Ali Alexander put on the speakers list. When Jones and Alexander left the rally early (to begin the march to the “Wild Protest”), it was Wren who escorted them away as they prepared to lead the march on the Capitol. So Wren was operating at the nexus of where the Trump White House was directly coordinating with figures like Alex Jones and Ali Alexander and financing the broader ‘Stop the Steal’ organizing in the weeks leading up to the insurrection. And that’s the person who was invited to speak at the Chestnut Street Council:
And then there’s the Rockbridge Networks’s support for election denialism: Rockbridge was technically founded by Christopher Buskirk, editor and publisher of American Greatness:
And we we’re going to see in the following Media Matters report, Buskirk’s American Greatness outlet is more or less what we should expect from someone closely affiliated with Thiel. As we’ll see, American Greatness follows in the footsteps of Buskirk’s idol: Roger Ailes. Yep, Ailes is his hero. Which actually tracks with the kind of content of American Greatness pumps out, where far right fictions are served up to audiences with a ‘mainstream’ patina. And that includes all of the fictions about a stolen 2020 election that are routinely promoted by senior editor Julie Kelly.
Election denialism and lots and lots of thinly veiled racist tropes. That’s the kind of content Rockbridge Network founder Chris Buskirk produces. The kind of ‘mainstream’ conservative outlet the ghost of Roger Ailes would undoubtedly approve of:
“In reporting on the new organization, the Times didn’t mention that the website Buskirk edits and publishes, the far-right and nationalist outlet American Greatness, is home to an array of January 6 conspiracy theories, supplemented with defenses of military coups and a combination of thinly coded and occasionally overt racism. In general, American Greatness aims to stay just barely inside the mainstream discourse, typically avoiding the kind of open white nationalism that can relegate an outlet to being rejected by legacy right-wing media. ”
American Greatness isn’t just a peddler of the kind of classic racist tropes that have long animated the right-wing media. It’s a promoter of the 2020 stolen election Big Lie, with senior writer Julie Kelly routinely pushing the worst kinds of ‘stolen election’ memes. American Greatness is just a MAGA garbage propaganda outlet. And yet, as we saw, Buskirk is a relatively mainstream conservative who even has his own NY Times column. Plus, he’s apparently a big fan of Roger Ailes. That appears to the big story here: the guy tapped by Thiel and Mercer to lead their new dark money donor network is a ‘mainstream’ conservative who is simultaneously running an outlet that pushes the worst kinds of far right propaganda. Roger Ailes is indeed an appropriate role model for this situation:
And note some of the figures directly ties to the insurrection plot: CNP member Cleta Mitchell and conservative lawyer John Eastman, who started working with Mitchell on the plot in the days following the 2020 election. Buskirk is clearly fully on board with the ‘stolen election’ agenda:
It’s hard to send a stronger signal of support for future insurrections than to give figures like Eastman and Mitchell an outlet to defend their actions. And that’s just what American Greatness has done repeatedly. It’s a big clue about the kinds of election activities that the Rockbridge Network is going to be focused on. And that’s perhaps the big story here: after a generation of political domination by a Koch-funded conservative movement that was will to spend whatever it takes to win elections, we’ve now moved on to the next generation of right-wing mega-donor groups where winning elections isn’t actually the top priority anymore. Staying in power is still a top priority for oligarchs like Thiel and Mercer, but not necessarily through winning elections. That’s old school.
Oh look. Peter Thiel may have triggered a bank run. That’s new.
It’s not yet confirmed what exactly caused the sudden collapse of Silicon Valley Bank (SVB), the 16th largest federally insured bank in the US. But at this point, it’s sure looking like Peter Thiel at least played a catalyzing role.
But he wasn’t alone. Along familiar figure may have played a role too: Bill Ackman, the investor who made what was arguably the most profitable trade in history back in March of 2020 when he made a 100-fold return shorting US stocks as the pandemic was unfolding. Ackman spent the weekend publicly warning the US government that it has 48 hours to bail out SVB before the collapse of SVB cascades into more collapses. Was Ackman correct? We’ll never know since the bailout happened.
But even with an imminent full scale financial meltdown avoided, the risks haven’t evaporated. Quite the opposite. This whole fiasco is a predictable consequence of the GOP’s 2018 financial deregulations. Deregulations that are still in place. This was a prelude. And that’s all part of why we really should try to answer sooner rather the question of whether or not this was the kind of systemic vulnerability that investors like Peter Thiel can trigger at will:
“Evan Armstrong, lead writer of the business-focused newsletter Napkin Math, tweeted on Friday: “This is the first time we’ve seen a social media induced bank run—if your customer base is active on twitter, this can happen to you just as easily.””
A social media induced bank run. There’s a first for everything. But that’s what appears to be at least part of what happen: the publication of Byrne Hobart’s newsletter — widely read by the VC community — warning about a range of risks facing SVB. Warnings that included a Feb 23 tweet where Hobart points out that SVB is already technically insolvent. So warning signs were building up for a couple weeks before everything exploded on Friday:
Hobart’s newsletter appear to get things in motion, but then we get to the role played by Thiel: It’s Thiel’s Founders Found that was among the first major Silicon Valley SVB clients to warn the companies helped in its portfolio to stop using SVB and pull out funds. This was a widely heard warning in Silicon Valley. And once word of it hits twitter, the bank run was inevitable:
And as the following piece notes, Peter Thiel isn’t the only figure facing criticism over the apparent role they played in creating this situation. As CNBC host Sara Eisen put it, “There should be more scrutiny of Peter Thiel and Bill Ackman for yelling fire in a crowded theater in this SVB collapse” :
““There should be more scrutiny of Peter Thiel and Bill Ackman for yelling fire in a crowded theater in this SVB collapse,” tweeted CNBC host Sara Eisen.”
Yelling fire in a crowded theater. That’s how CNBC host is characterizing the behavior of both Peter Thiel and Bill Ackman, presumably a reference to Ackman’s repeated warnings over the weekend that the entire US financial industry was poised to collapse of SVB didn’t get bailout out soon. Thiel and Ackman have the kind of clout that can move markets. As journalist Dave Troy put it, SVB did not probably hedge against two threats: rising interesting rates and the concentration of influence by Peter Thiel:
And regarding that Bloomberg piece that describes the actions by Thiel’s Founders Fund, note a couple of important details in that piece: First, the article was based on an anonymous source. Secondly, this anonymous source did not say if the Founders Fund’s cash withdrawals happened on Thursday, as the SVB’s financial troubles were bubbling over, or earlier. Again, don’t forget that the Hobart’s newsletter flagging SVB’s issues was already warning about SVB’s de facto insolvency back on Feb 23. In other words, if this was indeed a planned bank run, there was plenty of time for players to make arrangements. And that’s why the question of when the Founders Fund started pulling out its funds could be a very relevant question in terms of understanding whether or not the collapse of SVB was a planned event. A presumably highly profitable planned event:
“Founders Fund withdrew millions from SVB, said the person, who asked not to be identified discussing private information. It joined other venture funds that took dramatic steps to limit exposure to the now-failed financial institution. Founders Fund also advised its portfolio companies that there was no downside to moving their money away from SVB, even if the risk was low.”
An anonymous source with insider knowledge. That’s what this story was based on, which is usually a sign that this story was an attempt by Founders Fund to get its side of the story out there. And that’s also what makes the lack of any confirmation from this source on when the Founders Fund withdrawals actually started such an interesting question. Again, Byrne Hobart warned SVB was insolvent back on Feb 23, two weeks before the meltdown. When did the withdrawals begin following that report and which clients were doing the withdrawing? We still don’t have those answers:
Are answers forthcoming? We’ll see. But keep in mind that ominous warning from Dave Troy:
And also keep in mind that the concentration of influence by Peter Thiel is presumably higher than ever right now. He just got away with triggering a bank run, after all.
Did Elon Musk make another bad bet that’s about to go spectacularly awry? Time will tell, but it’s hard to avoid the suspicion that Musk fears exactly that kind of scenario when we hear about his denials of the reports of Musk pledging $45 million a month to Donald Trump’s presidential campaign. Especially given all the other reports we’ve been getting about how Musk has not only fully gotten on board the Trump train but that he played a major role in Trump’s selection of JD Vance as the vice presidential nominee. Or Musk’s open public endorsement of Trump’s reelection 30 minutes after the assassination attempt. It’s not a secret at this point that Musk is a big Trump backer. And yet, that’s what Musk is now insisting. He never made that $45 million pledge and, beyond that Musk is telling reporters that “I don’t prescribe to [a] cult of personality,” which is quite a diss towards Trump if you think about.
So has Musk backed out of his $45 million a month pledge now that Joe Biden is unexpectedly out of the race and Kamala Harris has Democrats fired up? Maybe, but as we’re also going to see, it sounds like Musk has developed another political obsession: using dark money vehicles that will obscure his political donations from the public. That’s apparently the strategy he’s trying to deploy after all the public criticism he received in 2017 over a $50,000 donation to the McCarthy Victory Fund aligned with then-House Speaker Kevin McCarthy. As a result, Musk reportedly told friends a few months ago that he wanted to find a way to support Trump but didn’t want to do it publicly.
It also sounds like Palantir co-founder Joe Lonsdale has emerged as one of Musk’s chief political confidants and played a major role in getting Musk to back Trump. Recall how Musk was far from the only Silicon Valley titan excited by Trump’s selection of Vance. The selection of Vance was seen by many as a way for Donald Trump to smooth over frayed ties to Palantir co-founder Peter Thiel. So when we see Lonsdale, Thiel’s longtime business partner, playing a role in turning Musk into a MAGA mega-donor, it’s sign of just how much influence Thiel and Lonsdale have in the contemporary GOP. And a reminder that, when Trump inevitably shucks off his mortal coil and leaves the Republican Party to someone else, we should expect these Silicon Valley titans to play a major role in shaping that post-Trump Republican Party. They are already making the investments. Investments that could pay off, in terms of party influence, whether Trump wins or loses in November. After all, win or lose, it’s hard to imagine the Republican Party turning its back on the MAGA agenda at this point. The future of the party is some version of MAGA.
That’s all part of why it’s going to be very interesting to see how Musk handles the questions about his seemingly vacillating support for Trump as the election plays out and looks less and less like a Trump landslide. On the one hand, supporting a losing highly polarizing candidate isn’t exactly good for Musk’s business interests. But on the other hand, Musk really does appear to be animated by sincere ‘anti-woke’ sentiments and really does seem to personally embrace much of the MAGA agenda. In fact, we are told that Musk recently shared with a group of fellow billionaires the idea that this would be the last free election in US history if Biden won reelection because millions of undocumented immigrants would be legalized and democracy would be finished at that point. Basically, Musk was pushing the Great Replacement theory, which is not at all surprising given his keen interest in eugenics.
Beyond that, Musk apparently told this group of billionaires that the key to Trump’s success doesn’t lie in raising money because political advertising is misplaced. Tesla barely advertises but still built a cult following through word of mouth. Why couldn’t the Republican Party do the same? That was Musk’s message to the billionaires: build a cult following for Trump. Yep. So when we see Musk insist that he doesn’t subscribe to cults of personality, keep in mind he wasn’t denying that he might try to build one:
““I don’t prescribe to [a] cult of personality,” Musk said. But, he added that Trump demonstrated “great courage” after being shot by an attempted assassin on July 13, and that strength helps intimidate America’s enemies.”
“I don’t prescribe to [a] cult of personality,” Musk insisted, before adding that Donald Trump’s “great courage” and strength helps intimidate America’s enemies. It’s quite the mixed message. Much like his messaging over whether or not he’s donating to Trump’s campaign. On the one hand, he disputes the reports of a commitment to $45 million monthly donations. But at the same time, he acknowledges creating the America PAC super PAC with Joe Lonsdale dedicated to helping Trump’s campaign. So how does Musk explain his donation denials despite forming a pro-Trump super PAC? Well, the PAC “is not supposed to be a sort of hyperpartisan” organization, according to Musk. Yep. That’s his explanation. The kind of nonsense explanation a cult leader might give to his followers expecting they’ll accept whatever garbage explanation he provides:
So given Musk’s denials of both donations to Trump and a fondness for cults or personality, it’s worth noting Musk’s views on cults of personality expressed in the following NY Times report about how Musk ended up arriving at his support for Trump. As we’re going to see, not only has Musk expressed a desire to limit his political donations to dark money outlets that can’t be publicly tracked, but he also reportedly told a group of fellow pro-Trump billionaires that the key to Trump’s victory isn’t money. The path to victory comes from cultivating a cult of personality much like he’s done with Tesla:
“Mr. Musk has transformed himself from an idealistic supporter of Democrats like Barack Obama into a fierce ally of Mr. Trump, whom he flirted with for months and endorsed last weekend roughly 30 minutes after the former president survived an assassination attempt.”
Musk has been heading towards becoming a full blown Trump mega-donor for years now. But it was the shooting that appears to have catalyzed his final embrace of Trump, with a full-throated endorsement of Trump less than an hour after the shooting. But even that public endorsement pales in comparison to the behind the scenes endorsement Trump was getting Musk at that meeting of billionaires two months ago, when Musk told the group that this would be the last free election for the United States if Trump doesn’t win.
Oh, and then he went on to suggest that the key to Trump’s success wasn’t money. The key was building a cult following like he did with Tesla:
So has Musk become a Republican mega-donor or not? Well, as we can see, we don’t necessarily get to know the answer to that question thanks to the US’s opaque dark money campaign finance laws. But based on Musk’s apparent enthusiasm for dark money avenues, it’s a good bet that the world’s richest man is making ample use of those dark money options that he can keep hidden from the public:
And note how Palantir co-founder Joe Lonsdale isn’t just the co-founder of the America PAC. Lonsdale and his aides have reportedly spent considerable time with Musk talking about politics:
And when we hear about how Musk and David Sacks helped to organize a private dinner in Los Angeles with several other anti-Biden billionaires and how Musk has been lobbying Trump to select JD Vance, recall the story about the $300k-per-pay Silicon Valley fundraiser for Trump where the attendees were unanimous in supporting the selection of JD Vance for the vice presidential slot. They’re the kind of anecdotes that serve as a reminder that the Trump campaign had some very deep pockets available in Silicon Valley to tap for a large injection of campaign funds. Pockets that were only going to get deeper if Trump selected Vance:
It’s pretty clear by now that Donald Trump chose JD Vance as part of a kind of transaction with Silicon Valley’s titans: Vance in exchange for large campaign cash infusions. And Musk was very obviously deeply involved with those negotiations. So when we see Musk issuing these denials, we have to ask, is Musk experiencing Buyer’s Remorse? Or are the denials just part of his desire to keep his support for Trump a public secret? And what kind of risk does open support for Trump pose to Musk’s own cult of personality? it’s hard to imagine Musk isn’t thinking about the risks to his own celebrity status, especially if Trump loses.
And what does Trump think about all this? He couldn’t have enjoyed hearing Musk make those denials and dismissing Trump’s following as a cult of personality. At the same time, Trump really does need Musk’s cash, secretly provided or not.
But Trump and Musk clearly need each other. Trump needs Musk’s cash and Musk needs Trump’s corrupt willingness to turn public policy into a for-profit transaction. They don’t have to sincerely like each other. But they do need some sort of arrangement. And while it’s unclear what exactly that arrangement is at this point, it does look like they’ve arrived at an arrangement. A secret arrangement with Trump — thanks in part to Peter Thiel’s longtime business partner Joe Lonsdale — that Musk will publicly deny as much as he can.
The kind of secret transactional influence-for-cash arrangement with the Trump campaign that presumably hasn’t been limited to Musk. Be on the lookout for more right-wing billionaires insisting they have no idea who this Trump fellow is but don’t like what they’ve heard.
It’s no secret dark money dominates US politics. The secret is more who is making those donations and what their agenda is. That’s why it’s always nice when we get a peek behind the dark money curtain. Nice and usually depressing.
So let’s get to an informative/depressing dark money update. This time it’s an update on an obscure new dark money network that emerged following the 2020 election: The Rockbridge network. As we’ve seen, that network was reportedly started as part of a trend where conservative mega-donors seemed dissatisfied with traditional routes for funding political operations. Peter Thiel and Rebekah Mercer appear to be its chief sources of finance. But for this update, the more important figure is Chris Buskirk, the founder of Rockbridge who also founded the American Greatness media network. Other American Greatness contributors include Cleta Mitchell and John Eastman, two of the key figures in formulating the strategy for overturning the 2020 election. In other words, the frustrated mega-donors behind the Rockbridge network were basically pro-insurrection mega-donors. Or at least that’s what we can reasonably infer.
So what is the Rockbridge-related update? Well, it turns out there’s another American Greatness adjunct fellow who made the news: Christopher Roach, an attorney who also happens to have an extensive online history of posting extremely racist content. For example, Roach reportedly had a Twitter account with the handle “Blessed Groyper”, a reference to Nick Fuentes’s neo-Nazi ‘Groyper’ movement. Recall the scandal that erupted around the Texas GOP in October of 2023 when it was discovered that Fuentes held a seven hour meeting with key Texas Republican operatives on October 6. In other words, Roach is just another example of the growing ‘Groyper’ presence in conservative circles.
Roach also happens to be one of just two known employees for Lawfair, a boutique lawfirm founded by attorney Adam Mortara. Beyond being a legal lecturer at the University of Chicago, Mortara also happens to be a former clerk for Supreme Court Justice Clarence Thomas. One of many former Thomas clerks that now compromises a powerful political network. While working at a different law firm, Mortara was also the lead trial lawyer representing Students for Fair Admissions in its case against Harvard. A case that Supreme Court turned into an excuse to gut affirmative action. As we’ve seen, the only way for US colleges and universities to now comply with the Supreme Court’s ruling is to reduce the number of black students.
But Mortara isn’t done with his Supreme Court cases. Recent reporting has revealed that Mortara’s Lawfair now has a contract with the state of Tennessee. LawFair is paid $10,000/month for up to two years by the governor of Tennessee, Bill Lee. The case is about whether Tennessee’s ban on gender-affirming hormone care for transgender minors is in violation of the 14th Amendment’s equal protection clause. It was accepted by the Supreme Court in June and is slated to be heard this fall. If the Supreme Court rules in the state’s favor, gender-affirming care for minors could be banned across the US.
That story about LawFair’s contract with the state of Tennessee is the context for the following Wired report revealing Roach’s extensive history of racist content. A boutique law firm headed by a former clerk for Thomas has just one other employee who happens to be Christopher Roach, an American Greatness fellow. So while we can’t say exactly what the Rockbridge network has been up to, we’ve at least got an update on one of its affiliates, Christopher Roach. He’s been busy:
“Earlier this month, The Tennessean reported on an August 2023 letter signed by Tennessee governor Bill Lee approving payment of $10,000 a month for up to two years to Lawfair LLC for its work on the gender-affirming-care case.”
An obscure boutique law firm that managed to obtain a $10,000/month contract with the governor of Tennessee for its work on a gender-affirming-care lawsuit. A lawsuit picked up by the Supreme Court in June. That’s the recent story that injected Lawfair into the news cycle. It’s a troubling story on the surface and indicative of the ongoing Republican fixation on monstering trans kids and using the legal system to do it. But as this report describes, the bigger story here is the fact that LawFair appears to be a white supremacist boutique law firm. Or at least that’s what we can only conclude after learning that one of its two employees is an prolific white supremacist author.
The firm was started by Adam Mortara, one of the many former law clerks for Justice Clarence Thomas that comprise a growing powerful network. Mortara, a lecturer at the University of Chicago, has been involved with politically charged issues like redistricting efforts in Texas and Wisconsin (in other words, the GOP’s egregious gerrymandering efforts). Mortara is clearly a very politically connected legal figure:
And as we can see, Adam Mortara is the relatively-respectable public face for this term. At least relatively-respectable compared to LawFair’s only other employee: Christopher Roach, an attorney who also happens to be an adjunct fellow at the Center for American Greatness. As we’ve seen, American Greatness appears to be closely aligned with the Rockbridge network, a new conservative dark money network that popped up following the 2020 election as conservative mega-donors were “expressing frustration with the more normal routes for funding political operations”. The key financiers of Rockbridge are Peter Thiel and Rebekah Mercer. Chris Buskirk, Rockbridge’s founder and a self-proclaimed Roger Ailes super-fan, also founded American Greatness. Other American Greatness contributors include Cleta Mitchell and John Eastman, two of the key organizers in formulating the strategy for overturning the 2020 election results. As this report describes, Roach’s history of white supremacist online posts includes a Twitter account that used handles like “Blessed Groyper”, an apparent reference to Nick Fuentes’s neo-Nazi movement. A neo-Nazi movement with shockingly close ties to the Texas GOP. So when we see someone with Roach’s Nazi past serving alongside Mortara at this politically connected law firm, keep in mind that he’s just one example of a much larger phenomena:
So at this point it looks like Roach’s work with LawFair is likely to be subdued following this publicly exposure. But as should be clear by now, Roach’s colleagues don’t really have a problem with his extreme racism. They have a problem with that extreme racism getting exposed. Whoops.